Having had contacts with the Lottery people in the past for our own little project, the rules are quite clear.
Your proposal is considered alongside other bids for money. Grants are given for capital costs not for on-going expenses. It would have been written quite clearly in the terms of the original grant when and how the money would be paid to TVOC, but that the project would not get future funding.
Part of the process is that the business plan would have been considered including how the project would become self-sufficient or have a defined end date. It would also have to demonstrate that the organisation would have income generation as part of the plan.
Finally, there should have been milestones in the project to release each stage of the funding.
Lottery funding is quite tightly controlled as it is a very politically sensitive issue. My chums tell me that they have to bear in mind the attitude of the Daily Mail headlines whenever they take a decision, but behind it all is the minister at the time.
They are using Lottery funding as a piggy-bank for their pet projects, and, for the next 2 years, that will be the Olympics.
TVOC stands little or no chance of getting further funding, and I'm sure the TVOC team have been made aware of that in very clear terms.