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
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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.
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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