BAG BOOKS REPORT ANDACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 Charity No: 1026432 Company No: 2846227
BAG BOOKS Year ended 31 December 2023 Reference and administrative information Status The organisation is a charitable companylimited byguarantee, incorporated on 19August 1993 and registered as a charity on 24 September 1993. Governlng Document The company was established under a Memorandum of Association which established the objects and powers of the charitable company. The objects are: "to promote the recreation and education of children and adults with special learning difficulties and/orphysical disabilities in particular through the use of tactile books and related material in the interests of social welfare and with the object of improving their conditions ofiife. The charitable company is governed under its Articles of Association. TheTrustees have referredtothe Charitycommission'sgeneralguidance on public benefitand believe that the charity meets the requirements of public benefit with regard to its aims and objectives and in planning its future activities. In particuLar, the Trustees have considered how the planned activities will contribute to the aims and objectives they have set. Summary of investment powers The trustees may invest the moneys of the company not immediately required for its own purposes in or upon such investments, securities. or property as may be thought fit. Business Address and Registered Off ice 1 Stewart's Court. 218-220 Stewart's Road, London SW8 4UB Contact details Tel: 020 7627 0444 email: office@bagbooks.org web.. www.bagbooks.org Charity Number 1026432 Company Number 02846227 VAT Number GB 994 0287 86
BAG BOOKS Year ended 31 December 2023 Reference and administrative information Trustees and directors Jonathan Walsh. Chair Rachel Tyson. Treasurer Karl Massey Catherine Pearson Natasha Theobald Patrons Kay Hounsham Msc MBE Sir Michael Morpurgo OBE FRSL FKC DL Dr Alison Salt MBBS FRCPCH FRACP Msc Senior Management Team Lucy Barrett, Chief Executive Nina Martinez, Storytelling Manager Sophie Baker, Craft Workshop Manager Marion Mason, Finance Officer Company Secretary Lucy Barrett Bankers UnityTrust Bank plc, Four Brindleyplace, Birmingham B1 2JB Solicitors Bates, Wells & Braithwaite, Cheapside House, 138 Cheapside, London EC2V 6BB Auditors Wyatts, Chartered Accountants, York House, 1 Seagrave Road, London SW6 1 RP
BAG BOOKS Year Ended 31 December 2023 Trustees, Report The Trustees and Directors present their report and the audited financial statements for the year ended 31 December 2023. The legal and administrative information set out on pages 2 and 3 forms part of this report. The financial statements compLy with current statutory requirements. the memorandum and articles of association and the Statement of Recommended Practice-Accounting and Reporting by Charities (issued July2015): FRS 102. Introduction Bag Books enhances the Lives of children and adults with complex learning disabiLities through muLti-sensory books and storytelling. We believe that individuals with severe and profound learning disabilities should be proactively included and welcomed into their communities. Our goal is to bring stories to life, creating positive and inclusive opportunities for everyone to enjoy the world of storytelling without barriers. Our main activities include". Designing and producing a range of multi-sensory books Providing specialist multi-sensory storytellers Training others in multi-sensory storytelling techniques (MSST) Our multi-sensory books are crafted for enjoyment regardless of comprehension. They cater to people with profound and multiple learning disabilities (PMLD, with a maximum developmental age of 18 months), severe learning disabilities ISLD, with a maximum developmental age of 6 years), and severe autistic spectrum disorders. Each book features a Large-print storyboard with 6-12 lines of text, paired with specially selected objects, many of them handmade. Participants engage their senses of sight. sound. touch, smell, and motion through these objects, guided hand-over-hand by the storyteller. Through our efforts, we open up a world of imagination and connection for those who need it most. Executive Summary The past yearfor Bag Books has been very busy, marked by the typical highs and lows encountered in the nonprofit sector amidst a post-pandemic landscape. Increased demand for our funded services coincided with a more competitive fundraising environment, presenting its challenges. Nevertheless, we are delighted to report significant achievements during the last tvvelve months. Our primary challenge was a decrease in sales of our multi-sensory books compared to 2022, due to tightening budgets and rising costs. Economic disadvantage has always proven to be a substantial barrier to accessing sensory equipment and resources. With the cost-of-living crisis, school and council budgets being cut, and service recovery even harder to achieve, those with compLex disabilities are more isolated and unsupported than ever. A survey by the Nutlvlldl N¥LvvuiK uf speGidl bcnoois Tor bchool Business Professionals (NNOSS) revealed that 601Yo of speciaLschooLs reduced spendingon essential resources, redirectingfunds to address escalating energycosts and inflation. Our user survey involving 267 SEND professionals
BAG BOOKS Year Ended 31 December 2023 Trustees, Report and parents/carers indicated that 92 % experienced a significant decrease in available funds, emphasisingthe vital importance of Bag Books, mission. During the year, we saw a massive increase in requests for ourfunded project work and a 276% increase in demand for our free resource packs and DIY stories, with over 8,346 downloads throughout the year. Additionally, there was a high demand for tailored, sensitive stories on topics such as adoption, fostering, and divorce, which we are dedicated to creating in 2024 and beyond. 2023 aLso saw the start of our partnership with the World Book Day charity. ensuringthat alL children, regardless of abilities, can partake in the celebration of literature. The Bag Books team developed sensory activities for each book title released forworld Book Day, which the World Book Day Charity then distributed to every school and special education setting across the UK. Feedback was wholly positive, and we are thrilled to continue the partnership for World Book Day 2024. We also Launched our new Brand Strategy, including a comprehensive revamp of our brand identity and the upcoming release of a newwebsite in mid-2024. This newwebsite WILL feature a resource hub and training centre, providing accessible materials and guidance for educators, parents. and caregivers to better support our beneficiaries. Despite an expected deficit due to the cost-of-living crisis and increased expenses, we have a clear pLan to enhance fundraising, expand donor engagement, and diversify income streams, ensuring Bag Books, financial stability and continued supportfor our beneficiaries. Lookingahead, we are excited aboutthe future and remain committed to our mission of providing essential multi-sensory books and resources to those who need them most. Our innovative approaches, strengthened partnerships, and dedicated team position us well to rneet the challenges and opportunities of the comingyear. Structure, governance and management Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. Trustees are elected by the Members at the Annual General Meeting, and at each meeting, a third retire by rotation. Trustees can be appointed during the year but must then be elected at the subsequent Annual General Meeting. The Trustees meet quarterly and have been seLected on the basis of experience and knowledge of severe and profound intellectual and physical disabilities andlor specialist skills in law, business and fundraising. Any Trustee vacancies are openly advertised. and new Trustees are inducted into the workings of the charity through a tour of the craft workshop, informal discussions with staff and volunteers and the opportunity to obseNe storytelling sessions with
BAG BOOKS Year Ended 31 December 2023 Trustees, Report beneficiaries. An induction pack is provided. which includes copies of the Memorandum and Articles of Association, the most recent Audited Accounts, minutes of the last two Board meetings and the Charity Commission's booklet "The Essential Trustee. We finished the yearwith five Trustees in post: Jonathan Walsh, a solicitor, has been a Trustee since 26104106 and was appointed as Chair in April 2022. RachelTyson, ourTreasurer. is a qualified accountantcurrentlyworkingfora private entrepreneur and philanthropist. Rachel has been a Trustee and Treasurer since 06111/12. Karl Massey has worked in financial markets since 1988. Karl is a Member of the Development Board of the Physics Department, Universityof Oxford. Memberofthe Institute of Physics, Fellow of the Royal Society for Arts. He is a Member of the Investment Committee of the Athenaeum Club, London. Karl has been a Trustee since 31110117. Catherine Pearson, former Team Leader of the Early Years Special Educational Needs Team for the Borough of Lambeth, is nowthe Manager of Childcare Services at Cambridge University. She has been workingwith children with autism and other needs and theirfamiLies since 2007. Catherine has been a Trustee since 30101118. Natasha Theobald, a charity marketing professionalwith over20years' experience. Natasha has been a Trustee since 20/07110. Although three people have been Trustees for more than ten years, the other Trustees have considered this and concluded thattheirexperience is beneficialtothecharityand that there is a reasonable balance of time served as a Trustee across the Board as a whole. The average time served is now 10.4 years. We will be actively recruiting new trustees in 2024. The Trustees employ a Chief Executive to manage the charity alongside a Storytelling Manager, Craft Workshop Manager, and a Finance Officer. The charity also employs a Fundraising & Communications Executive, a Senior Craft Artist and two Craft Artists. Only one memberof staff is full-time. The remuneration ofalLstaff members is reviewed annually when the Trustoes set the budget for the forthGoming year. In £](JJition. the charity has contracts with 8 freeLance Storytellers who are based throughout the UK. Regular volunteers are invaluable to multi-sensory book production, supplying all knitted items and a significant amount of hand sewing and woodwork. We are also grateful to corporate volunteerteams whojoined us for Craft Days throughout the year. After rebuilding post-pandemic. our Craft Days have been very popular, hostinggroups ine.IiJding £AIAgforca. Innocgnt Smoothieo, and AND Digilcil. Wtt ebiiiiidie Inai our volunteers donated a total of 124 days to us during 2023. contributing work vaLued at around £10,411. though this sum is not incLuded in these accounts.
BAG BOOKS Year Ended 31 December 2023 Trustees, Report Bag Books is a member of the PMLD Network, the European Academy of Childhood Disability and the National CounciL of Voluntary Organisations. The charity is also registered with the Fundraising Regulator. The Chief Executive is a member of the Association of Chief Executives of Voluntary Organisations. The Storytelling Manager is a member of the Epilepsysociety and the National Autistic Society. Risk management policy 10. The Trustees annually reviewthe major risks to which the charity is exposed. These have been identified as the over-reliance on a small pool of funders, mitigated by constantly monitoring reserve levels and attempting to widen the number of funders. The loss of key personnel, mitigated by ensuring we offer a flexible working environment and the failure to protect children and/or vulnerable aduLts, which is mitigated by ensuring we comply with Disclosure and Barring Service regulations and having a robust Safeguarding Policy in place. Our Safeguarding Policy and Procedures are reviewed annually and include annual training for relevant staff and volunteers. The end of our current office lease also features on our risk register. We have extended our lease until the end of 2024, and WILI actively pursue new premises duringthe year. The Covid-19 global pandemic was added as a key riskto the charity in 2020, prompting a range of risk management activities. These included increased meetings between the Senior Leadership Team and trustees, scenario planning on strategy and priorities, regular reviews of cash flows and budgets, strengthening controls around expenditure and cash flow forecasting, comprehensive reviews of health and safety and HR policies and procedures, and a full review of IT systems to support remote working. Considering the continuing obstacles posed by Covid-19 (our beneficiaries are particularly vulnerable), Brexit and its impact on stock availability, and the cost-of-living crisis, all these areas remain ongoing and subject to change. The risk register is presented and updated at each trustee meeting. Objectives, activities, achievements, and performance 12. Bag Books is still the only organisation in the worLd publishing muLti-sensory stories for people with severe or profound & multiple learning disabilities. The charitable objects are stated on page 2 of this report. The Trustees have adopted the following strategic aim: -To enhance the lives of children and adults with learning disabilities through the use of multi-sensorybooks. )* Our new Strategy and Business Plan 2023-2028 seeks to retain our current strategic aim while adapting our deliveryforthe current environment ensuringthat we can take advantage of the opportunities availabLe to the chariiythat Will help to enhance our provision for 2023 and beyond.
BAG BOOKS Year Ended 31 December 2023 Trustees, Report 13. As part of their strategy. the Trustees set out our key aims: To motivate children and adults with learning disabilities to engage with objects, materials, and their peers. To develop the language, communication, and motor skilLs of children and adults with Learning disabilities. To enhance the emotional perception of children and adults with learning disabilities. To enable professionalworkers and parentslcarers to use tactile and multi-sensory books with children and adults with learning disabilities. To involve children and adults with learning disabilities in story development and production. 14. The Trustees have also adopted four Charitable Qbjectives and two Organisational Objectives. Set out on pages 8 - 11 is a review of what we intended to do in 2023 (as stated in our 2022 accounts), and what we achieved during 2023. 15. Charitable Objective 1: To promote multi-sensory storytelling within the academic, library. adult day centre. health and special educational fields, by organisng a programme of multi-sensory storytellingsessions across the UK We said we would: Source funding to continue our storytellingwork. Offer in-person storytelling sessions through our funded projects Renew ourwebsite to include an online hub of sensory resources. In 2023. this is what we did: Oursensorystories project supports special schools in the UK catering to students with severe and profound learning disabilities. Each school received a day of muLti-sensory storytelling from our Storytellers, alongwith specialLy crafted books and training resources. Overthe year, 478 chiLdren participated in our project. Feedback collected from 196 teachers was overwheLmingiy positive, with 79 % rating the sessions as Excellent" with a perfect score of 5/5, and the remaining 210/0 ratingthem a8"Very Good"_415. "BagBooks are the most engaging, reading-focused format for ourpupils. all of whom have severe learning difficulties. The storytelling was magical, and the props brought the story to life for our learners. Special Needs Teacher Wo continued to Greate digildl LonieTII, Inciuuing new DIY stories and specially recorded story sessions forteaching staff to use in schools and share with pupils,
BAG BOOKS Year Ended 31 December 2023 Trustees, Report families at home. This work received an overwhelmingly positive response, with over 8,346 downloads throughout the year an increase of 2760/0. Fundingwas secured to improve ourwebsite, and we successfully launched a new Brand Strategy, refreshing the Bag Books identity. Although the website launch has been delayed to mid-2024, it will include a resource hub with free downloads and a refreshed library of storytelling videos. Our work with the World Book Day charity promotes sensory storytelling, with resources developed to support World Book Day titles downloaded over 29,000 times. The website update will coincide with the release of new book boxes and marketing materials. aLI designed to empower users. In 2024, we plan to: Launch our new website Secure fundingto continue our storytellingwork Offer in-person storyteLling sessions through ourfunded projects, Continue our partnership with the World Book Day charity Create a new range of free downloadabLe Sensitive Stories 16. Charitable Objective 2 To develop and produce a range of appropriate literature for children and adults with Severe and Profound & Multiple Learning Disabilities. We said we would: Increase book production in line with our bookshop sales and funded work. Continue to review and improve our current book offerings, ensuring consistently high standards. In 2023. this is what we did: Produced 694 books during the year. Released our new At Home Series for general sale in the bookshop. The Friendly Caterpillar. the first of our smaller, more affordable story boxes. was our best seller for the year. Developed additional DIY stories for our sensory resource packs and website, free foranyone to download. Newstories included His Majesty's Coronation, Logan's Visitto Hospital, and Barney's Big Idea. Our packs were downloaded 8.346times, upfrom 2.227 times in 2022. In 2024, we plan to: Develop three new titles for release in 2024 Create additional DIYand sensitive stories for our new online resources hub.
BAG BOOKS Year Ended 31 December 2023 Trustees. Report 17. Charitable Objective 3 To train parent/carers andprofessional workers in the learning disability field as multi- sensory storytellers. We sald we would: Organise a series of face-to-face and online training sessions for parentslcarers, teachers, librarians and otherSEND professionals. Update our digital library of online training videos that will form part of our new website's resource hub. In 2023 this is what we did: We were pleased to provide trainingto 206 teachers and other SEND professionaLs, 15 parents and 51 libraries during 2023. 97 % gradingthe training as Good/Very Good. We successfully piloted our online'lntroduction to Multi-sensory Storytelling Technique" course. Two sessions in the last quarter of 2023 saw 36 attendees and received positive feedback. Encouraged by this success, we will continue offering these sessions throughout 2024 and theywill also form part of the extended training provision for schools participating in our Sensorystories project. We continued to upload newvideos to ourYouTube Channel and have filmed new training and storyvideos thatwill accompany aLI of our titLes and will be avaiLable on our newwebsite. In 2024 we plan to: Organise a series of face-to-face and online'training sessions for parents/carers, teachers, librarians and other SEND professionals. Release a new and updated Bag Books training video that will be available to purchase. 18. Charitable Objective 4 To provide story production craft experience opportunities to people with severe or profound & multiple learning disabilities. We said we would: Continue running the Build-a-Book project at schools and adult settings within London and South East England if funding becomes available. In 2023 this is whatwe did: After having to pause our Build-a-Book project at schools and adult settings due to the pandemic, we were able to fully complete all of our funded BuiLd-a-Book sessions. 10
BAG BOOKS Year Ended 31 December 2023 Trustees, Report In 2024 we plan to: We will source funding so that we can offer craft experiences through various projects at schools and adult settings within London and Southeast England. 19. Organisational Objective A To have long-term financial security. We said we would: Continue to act conservatively. considering income levels are still impacted by the pandemic and the fundraising landscape is competitive. Applyfor some multi-yeargrants to give us more predictable income in the future. In 2023 this is what we did: In response to the impact of the cost-of-living crisis and soaring inflation, we took swift action to reinforce our controls regarding expenditure and cash flow forecasting. In 2024 we plan to: Continue to act conservatively, considering income levels are still impacted by the pandemic and the fundraising landscape is competitive. Applyforsome multi-yeargrants to give us a more predictable income in the future. 20. Organisational Objective B To continuaglyimprove our Governance, Management, and infrastructure. We said we would: Recruit and retain more volunteers to further assist book production and to assist our office operations. In 2023 this is what we did: We were delighted to increasethe numberofboth in-house and remote volunteers assisting in our book production. Their combined efforts amounted to 124 days of volunteering. We were pleased to welcome corporate volunteer teams who joined us for Craft Days throughout the year. After rebuilding after pausing during the pandemic, our Craft Days have been very popular, hosting groups including Salesforce, Innocent Smoothies, and AND Digital. Recruit new trustees to the board. In 2024we plan to: Recruit and retain more volunteers to further assist book production and to assist our office operations. Hold more corporate volunteering sessions. 11
BAG BOOKS Year Ended 31 December 2023 Trustees, Report 21. Overall. we aimed to reach over20,000 people with learning disabilities during 2023. Our books tend to last for at leastfive years as we offer an at-cost replacement parts service. Overthe past five years, we have suppLied our classic books to over 1,100 different schools, libraries, hospices, and day centres. Previous surveys have shown that in these locations, our books reach an average of 22 people with learning disabilities each year. We therefore estimate that this target was easily met. We WILI aim to reach 20,000 people with learning disabilities in 2023. Financial revlew 22. Income decreased by 5¥0 to £258,389 {2022: £246,989). We were aware that 2023 was Likely to be difficult, and like numerous charitabLe organisations in the UK, B8g Books has faced significant challenges this year. The cost-of-living crisis and escalating inflation have strained our production and operational expenses. Although we experienced a positive increase in corporate donations (up 266%) and individual contributions, the competition for funding from trusts and foundations intensified considerably. Fortunately, due to the invaluable support from several key funders and our dedicated efforts in previous years to establish robust relationships, we managed to navigate these challenges and it was encouraging to see a sLight increase in income compared to 2022. .23. Part of our risk management was to ensure tighter control over our expenditure to protect the charity during 2023, as we have done since the pandemic. We were able to attain this, and our expenditure for the yearwas £319.000. Our budget for the year had a predicted expenditure of £401,927, so actual expenditure was, in fact, 26% under budget. 24. This has resulted in our net resources Sitting at -£60,611 (2022: £-73,483). Our Restricted Funds saw a decrease of £6,885, giving a total of £32,248, and our Unrestricted Funds increased to £226,141 (2022.. £207,856). Our book sales decreased during 2023 to £42,327 {2022: 50,701). Budget for 2024 25. The Trustees have approved a 2024 budget with an anticipated income of £360,540 (compared to £414,040 in 2023), of which £23,040 was secured at the start of the year. The projected expenditure for 2024 is £358,012 (down from £401,927 in 2023). The board acknowledges that this budget assumes a more'normal, yearforthe charity. but as part of our financial risk analysis, we have adopted a conservative budget approach that we WILI continualLy review throughout the year. Reserves policy 25. Our historic reliance on one-off donations from Charitable Trusts can make our income unpredictabLe, so our Reserves Policy had always been relatively conservative. However. as part of our risk manaRement strategy tn mitig2tp. th? imr)act of tho pandemic on the charity, we made efforts in previous years to increase our reserves to ensure stability. Lookingahead, 2024 is likelyto still be a challengingyeareconomically, 12
BAG BOOKS Year Ended 31 December 2023 Trustees, Report which consequently affects the broader fundraising landscape. As of the end of the year, our Unrestricted reserves (General Funds) amounted to £218,874 (2022.. £239.052). 27. Our budgeted expenditure for 2024 is £360,540, of which £23,040 had already been secured, and £32,248 was covered by Restricted Funds, leaving a baLance of £251,466 (2022: £306,754) to raise. It is worth noting that our expenditure includes additional members of staff who will not be recruited untiL funding is secured. Our Unrestricted Reserves are £218,874. Our Unrestricted Reserves are sufficient to cover 87% of this balance. 28. Given the volatile nature of much of our income, the Trustees will continue to closely monitor the reserves position throughout the forthcoming year, spending any surplus funds on charitable activities. Staff pension arrangements 29. We joined the National Employment Savings Trust (NEST) pension scheme, and the charity has agreed to match employees, contributions up to 3% of their salary. A breakdown of staffing costs, including pension payments, appears in Note 4. Trustee indemnity insurance 30. Our insurance policy automatically includes Trustee indemnity insurance. Fundraising performance 31. Direct fundraising costs were £300 (2022: £268), which represents just 0.09 % of total expenditure. With Support Costs added, we invested a total of £53,614 (2022: £50,719) in fundraising, and this produced voluntary income of £203,465 (2022: £186,106) which was 75 % (2022: 75 %) of ourtotal income. Income from corporate partners reached £17,859 in 2023, a significant increase of 266 % compared to £4,885 in 2022. This positive growth marks a strong recovery in corporate contributions afterthe decline experienced duringthe pandemic. Income from individuals decreased to £11.557 (2022: £10,298). The impact of the cost-of-living crisis has meant that we have seen a slight decrease in individuaL donations. We WILI Lookto see how we can address this in 2023. Income from Gifts in Kind increased, with us receiving £9,352 in 2023. compared to £6,810 in 2022. 32. The Trustees would like to thank all our donors for their support. The Trustees are also grateful to all the companies and organisations which provide goods and seNices free of charge. This support is recognised under Gifts in Kind One of the main items within this is the audit which has been kindly provided on a pro-bono basis by Wyatts for several years. 13
BAG BOOKS Year Ended 31 December 2023 Trustees, Report Statement of responsibilities of the trustees 33. The Trustees are required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, includingthe net income or expenditure, for the period. In preparing those financial statements the Trustees are required to". select suitable accounting policies and then apply them consistently; make judgments and estimates that are reasonable and prudent," state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements," prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitywill continue in operation; and observe the methods and principles in the Charities SORP. b) d) 34. TheTrustees are responsibleforkeepingproperaccounting recordswhich disclose with reasonable accuracyat anytimethefinancial position of charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Statement of disclosure to auditors 35. As faras the Trustees are aware there is no relevant audit information of which charity's auditors are unaware. Additionally, the Trustees have taken all steps they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the charity's auditors are aware of that information. Auditors 36. A resolution to confirm the reappointment of Wyatts as the company auditor will be proposed at the Annual General Meeting on 29th October 2024. Approved by the ard of Trustees on 23rd September and signed on its behalf: Jonathan Walsh Chair rd 23 September 2024 14
BAG BOOKS Year Ended 31 December 2023 Auditors. Report Opinion We have audited the financial statements of BAG BOOKS (the 'charity') for the year ended 31 December 2023which comprise the statementof financial activities, statementof financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting standards. including FRS 102 The Financial Reportingstandard applicable inthe UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the charity's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, forthe yearthen ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in . the auditor's responsibilities forthe audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevantto our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fuLfiLled our other ethicaL responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relatingto going concern We have nothingto report in respect of the folLowing matters in relation to which the ISAS (UK) require us to report to you where: the trustees, use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the goingconcern basis of accountingfor a period of at Least twelve months from the date when the financiaL statements are authori8ed for issue. 15
BAG BOOKS Year Ended 31 December 2023 Auditors, Report Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other Information The other information comprises the information included in the annuaL report, otherthan the financial statements and our auditor's report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express anyform of assurance concLusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doingso, considerwhetherthe other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whetherthere is a material misstatement in the financiaLstatements ora material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception In the Light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees, report. We have nothingto report in respect of the following matters in reLation to which the Charities Act 2011 requires us to report to you if. in our opinion: the information given in the trustees, report is inconsistent in any material respect with the financiaL statements,. or adequate accounting records have not been kept; ori,. the financial statement8 are not in agreement with the accounting records and returns; or we have not received allthe information and explanations we require for our audit. 16
BAG BOOKS Year Ended 31 December 2023 Auditors, Report Responsibilities of trustees As explained more fully in the trustees, responsibilities statement. the trustees are responsible forthe preparation of the financial statements and for being satisfied that they give a true and fairview, and forsuch internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's abilityto continue as a going concern. disclosing, as appLicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity orto cease operations or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, includingfraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, includingfraud. The extent to which our procedures are capable of detecting irreguLarities, includingfraud is detailed below: In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: We obtained an understanding of the Legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have 2 direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, together with Charities SORP (FRS 102). We assessed the required compliance with these Laws and regulations as part of our audit procedures on the related financial statement items. In addition. we considered provision of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the 17
BAG BOOKS Year Ended 31 December 2023 Auditors, Report charitable company's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the charity's operations were employment legislation, taxation legisLation and General Data Protection Regulations. Auditing standards limit the required audit procedures to identify non- compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legaL correspondence, if any. As part of an audit in accordance with ISAS (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error. design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resultingfrom fraud is higherthan forone resultingfrom error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controL. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not forthe purpose of expressing an opinion on the effectiveness of the internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and relatod disclosures made by the trustees. Conclude on the appropriateness of the trustees, use of the going concern basis of accountingand. based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's abilityto continue as a goingconcern. If we concLude that a materiaL uncertaintyexists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate. to modifyour opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the charity to cease to continue as a going concern. Evaluate the overall presentation. structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the Dlanned gr.nr)p. Anrl timing nf tho aLidit ond -gnificont audit finding8, inGluiliiig taiiy bigiilTICdlll deficiencies in internal control that we identify during our audit. 18
BAG BOOKS Year Ended 31 December 2023 Auditors, Report Use of our report This report is made solelyto the charity's members. as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fuLlest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or forthe opinions we have formed. K WYATh (Senior Statutory Auditor) For and on behalf of Wyatts Chartered accountants & statutory auditor York House 1 Seagrave Road London SW61RP 23rd September 2024 19
BAG BOOKS Year Ended 31 December 2023 Financial Statements Statement of Financial Activities Unrestricted Funds Restricted Funds Total Notes 2023 2023 2022 INCOME Donations & legacies Charitable actlvities Book Production Stow(elling & Training Investments Other Gifts in kind TOTAL INCOME 2023 2022 171,217 146,973 32,248 39,133 203,465 186,106 42,328 3,035 209 50,701 3,165 207 42,328 3,035 209 50,701 3.165 207 9.352 6,810 9,352 L 6,810 226,141 207,856 32,248 39.133 258,389 246.989 EXPENDITURE Raising funds Charitable activities Book Production Storytelling & Training TOTAL EXPENDITURE 71,997 80,875 71,997 80,875 127,603 118,804 48,423 47.249 176,026 166,053 51,452 52,618 19,525 20.926 70,977 73,544 251,052 25.2.227. 67,948 68.17& 319,000 3.20,472 OPERATING SURPLUS I (DEFICIT) (24,911) (44,441) 0 (60,611) (73,483) Net gains / (losses) on investments Net income I (expendlture) 4,733 592 4,733 592 (20,178) 143.849) (35,700) (29,042) (55,878) (72,891). Reconciliation of funds Total funds brought forward Total funds carried forward 239,052 282,901 59.200 88,242 298,252 371,143 218,874 239,052 23,500 59,200 242,374 298,252 All activities relate to continuing operations. The notes on pages 20 to 28 form part of these financial statements. The statement of financial activities includes allgains and losses recognised in the year. 20
BAG BOOKS Year Ended 31 December 2023 Financial Statements Balance Sheet Notes 2023 Total 2022 Total Flxed Assets Tangible assets 2.314 Current Assets Stock Trade debtors Prepayments Other Debtors VAT repayable Deposits- Investment Account Cash at bank and in hand Total Current Assets 32,787 3,302 1,020 5,200 596 39,965 5,284 1,124 2,520 273 87,036 21Q,634 39 172&11 Creditors due wlthin one year: Trade creditors Tax and social security Other creditors VAT Liability Deferred income Total Current Liabllities 653 7,690 4,231 229 8,380 4,272 833 574 Net current assets 240,955 295 918 Net assets 29.8 252 FUNDS General funds Restricted funds Total Funds 218,874 239,052 20 29&Z52 The financia and signed statements were approved by the Board of Trustees on 23rd July 2024 n its behalf by Jonathan Walsh, Chair The notes on pages 23 to 28 form part of these financial statements. 21
BAG BOOKS Year Ended 31 December 2023 Financial Statements Cash Flow Statement Notes 2023 Total 2022 Cash flows from operatlng actlvltles Net cash provided by (used In) operatingactivlties 33,493 (79,621) Cash flows from investing actlvitles Dividends, interest and rents from investments Proceeds from sale of property, plant and equipment Purchase of property, plant and equipment Proceeds from sale of investments Net cash provided by(usedln) Investlngactivities (209) (207) (1,300) 524 (915) Cash flows from financing activities Net cash providedby (used in) financlngactivlties Change In cash and cash equlvalents in the reportingperiod Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period 38, 017 (80,524) 172,6L7 25 210,634 122.61Z 22
BAG BOOKS Year Ended 31 December 2023 Notes to the financial statements 1. Accounting policies a) Accounting convention. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain fixed assets and in accordance with the Statement of Recommended Practice "Accounting and Reporting by Charities" (SORP 2016) and Financial Reporting Standard 102 and the Companies Act 2006. b} Going concern. The accounts have been prepared on a going concern basis. Having carried out a detailed review of the Charity's resources and the challenges presented by the current economic climate, the trustees are satisfied that the Charity has sufficient cash flows to meet its liabilities as they fall due for at least one year from the date of approval of the accounts. c) Incoming Resources. These are included in the Statement of Financial Activities (SOFA) when". The charity becomes entitled to the resources. The trustees think it probable or more likely than not that they will receive the resources. and The monetaryvalue can be measured with sufficient reliability. Legacies are included in the SOFA as an incoming resource in the year in which the charity is notified and when the entitlement, measurementand theirreceipt is probable. Incoming resources from tax reclaims are included in the SOFA at the same time as the gift to which they relate. Gifts in kind are accounted for at a reasonable estimate of their vaLue to the charity or the amount actually realised. Gifts in kind for sale or distribution are included in the accounts as gifts onLywhen soLd ordistributed bythe charity. Gifts in kind for use bythe charity are included in the SOFA as incoming resources when receivable. The value of any voluntary help received is not included in the accounts but is described in the trustees, annual report. Investment income is included in the accounts when receivable. d) Resources expended. Resources expended are accounted for on an accruals basis, incLusive of any VATwhich cannot be recovered. The charity became registered forVAT on 1st October 2010 and is able to partially recoverVAT. e) Tangible fixed assets and depreciation. Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value. over their expected useful lives on the following basis: Furniture. fittings and office equipment- 25 % straight line. f) Stocks. Stocks are vaLued at lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items. g) Fund accounting. Funds held bythe charity are either: 23
BAG BOOKS Year Ended 31 December 2023 Notes to the financial statements Unrestricted funds. These are funds which can be used in accordance with the charitable objects at the discretion of the trustees. Restricted funds. These are funds that are to be used in accordance with specific restrictions imposed by donors orthat have been raised bythe charityfor particuLar purposes. The costs of raising and administering such funds are charged against the specific fund. h) Investments. Investments are included at market value at the balance sheet date. i} Investment income. This includes anygains or loss on the sale of investments and any gain or loss resultingfrom revaluing investments to marketvalue atthe end of the year. j) Taxation. Bag Books is a registered charity which renders its income exempt from UK income tax. kl Pension costs. The charity has joined the National Employment Savings Trust (NEST) pension scheme and has agreed to match employees, contributions into that scheme up to 3 % of salary. The costs to the charity are recognised as they are incurred. 2. Total resources expended Unrestricted Funds RestTiCted Funds 2023 Total 2022 Total Wages and salaries Materials and consumables Storytelling and training Craft Workerslvolunteer Expenses Direct Fundraisingcosts Rent and services Utility Bills Repairs and renewals Telephone, Broadband and Computers Postage and stationery Distribution costs Insurance Advertising and promotion Governance (Audit) General expenses Bank charges Depreciation Total Resources expended 173,531 20,197 41,695 4,852 8,586 90 58 6,321 2,181 187 941 215,226 25,049 8,586 462 300 32,634 11,263 963 4.855 241,632 13,836 2,389 1,375 268 33,233 3,143 3,846 3,609 324 2,837 3,341 2,776 - 3,969 2,238 610 372 242 26,313 9,082 776 3,914 2,115 2,617 4,113 3,990 2,421 639 7a0 508 629 989 2,623 3,246 5.102 3,990 3,003 793 582 154 175 220 24
BAG BOOKS Year Ended 31 December 2023 Notes to the financial statements Allocation of Support Costs Raising funds Charitable Activities 2023 Total 2022 Total Proportion Wages and salaries Rent and services Utility Bills Repairs and renewals Telephone. Broadband and Computers Postage and stationery Insurance Advertising and promotion Governance (Audit) General expenses Bank charges Depreciation 30,918 11,096 3,829 327 1,651 60,016 21,538 7,434 636 3,204 90,934 32,634 11,263 963 4,855 91,038 33,233 3,143 3,846 3,609 324 3,341 2,776 3,969 2.238 610 1,04fi 1,104 1,735 1,357 1,021 270 2,142 3,367 2,633 1,982 523 3,246 5.102 3,990 3.003 793 os Total Support Costs 104 074 157 688 149J7_3 Direct Costs 42 I&L312 147 1&1 Total Costs 7_1,997 247,003 4. Trustees and employees information None oftheTrustees (nor any other persons connected with them) received any remuneration. benefits or reimbursement of expenses from the charity during the year {2022: Nil). The insurance package forthe charity automatically includes Trustee Indemnity Insurance. Employee costs during the year were: 2023 2022 Salaries Social security costs Employer's contribution to NEST pension scheme Total costs 197,372 12.634 L220 215,226 219,182_ 16,617 5,&38 241632 The average number of employees during the year The average number of employees (full-time equivalent) during the year Total employee benefits to the key management personnel listed on page 2 The average number of keymanagement personnel (full-time equivalent) 144,838 155,625 No employees received remuneration exceeding £60,00012022: Nil}
BAG BOOKS Year Ended 31 December2023 Notes to the financial statements Tangible Fixed Assets Cost At l January2023 Additions Disposals At 31 December2023 42,686 Depreciatlon At l January2023 Disposals Charge forthe year At 31 December 2023 40,372 05 Net Book Value At 31 December 2023 At 31 December 2022 6. Analysis of funds Summary of fund movements are as follows l Jan 2023 Income Expenditure 31 December 2023 Unrestricted Funds Restricted Funds 239,052 59,200 230,874 32,248 (251,052) 167,948) 218,874 23,500 Total all Funds 298,252 263,122 (319,000) 242,374 The composition and changes of the individual funds are as follows: 7. Unrestricted Funds The composition of Unrestricted Funds at the year end and the changes duringthe year are as follows: Opening Balance Net Movement 31 December 2023 31 December 2022 General Funds Fixed assets Net current assets Total unrestrlcted funds 2,314 236,738 239,052 (905) (19,273) {20,178) 26 1,409 217.465 218,874 2,314 236,738 239,052
BAG BOOKS Year Ended 31 December 2023 Notes to the financial statements Restricted Funds The composition of restricted Funds at the year end and the changes during the year are as follows: Opening Balance Net Movement 31 December 2023 31 December 2022 Restricted Funds Fixed assets Net current assets Total restricted funds 59,200 59,200 (35,700) (35,700) 23,500 23,500 59,200 59,200 Restricted funds represent amounts received from donorswho have specified the use of those funds as a condition for making the donation. Atthe start of the year Donor Incomlng Resources Outgolng Atthe end Resources of theyear The Stanley Grundy Foundation The Robertson Trust An Anonymous Trust Jack Lane Blackwood Engineering The Boshier-Hinton Foundation Pilkington Arnold Clark The Hedley Foundation The Mulberry Trust Calleva Foundation - Production Calleva Foundation- Storytelling The True Colours Trust D'oyly Carte Charitable Trust The Lord Bainby's Foundation BailyThomas Charitable Fund Chapman Charitable Trust Newcommen Collett Foundation The 29 May Charitable Trust The David Solomans Charitable Trust The Barbara Ward Childrens Foundation The Clare Milne Trust Sirjohn Eastwood Foundation Harmony Energy WC of Makers of Playing Cards Millichope Foundation TOTALS £3.000.00 £5,000.00 £3,000.00 £1,000.00 £2,000.00 £2,000.00 £5,000.00 £1,000.00 £4,500.00 £6,600.00 £2,500.00 £6,840.00 £6,840.00 £3.420.00 £2,500.00 £3,000.00 £0.00 £5000.00 £0.00 £3,000.00 £0.00 £1,000.00 £0.00 £2,000.00 £0.00 £2,000.00 £0.00 £0.00 £5,000.00 £1,000.00 £0.00 £4.500.00 £0.00 £6,600.00 £0.00 £2,500.00 £0.00 £6,840.00 £0.00 £6.840.00 £0.00 £3.420.00 £0.00 £2,500.00 £0.00 £10,000.00 £10,000.00 £0.00 £2,000.00 £2,000.00 £0.00 £998.00 £998.00 £0.00 £2,000.00 £2,000.00 £750.00 £0.00 £5,000.00 £5.000.00 £5.000.00 £5.000.00 £1,000.00 £1,000.00 £1.500.00 £1.500.00 £3,000.00 £3,000.00 £1,000.00:. £2,000.00 £i.000.00 £32,248.00 £67,948.00 £23.500.00 £750.00 £2.000.00 £2,000.00 £2,000.00 £59.200.00 27
BAG BOOKS Year Ended 31 December 2023 Notes to the financial statements Reconclliation of net incomel(expenditure) to net cash flow from operating activities 2023 2022 Net incomel(expenditure) for the reporting period (55.878) (72,891) Adjustments for: Depreciation charges (Gainslllosses on investments Dividends, interest and rents from investments Lossl(Profitl on the sale of fixed assets (Increase)Idecrease in stocks (Increaselldecrease in debtors Increase/ldecrease} in creditors Net cash provided by (used in) operating activities 905 (4.733) 209 1,046 (592) 207 7.178 86,119 L3@7) 111,474) 2,904 10. Capital The company is limited byguarantee and has no issued share capital. 28