REGISTERED COMPANY NUMBER: 03490480 {England and Wales) REGISTERED CHARITY NUMBER: 1070073 REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 FOR HAY FESTIVAL FOUNDATION LIMED MHA Statutory Auditor Elfed House Oak Tree Court Cardiff Gale Business Park CARDIFF County of Cardiff CF23 8RS
HAY FESTIVAL FOUNDATION LIMITED CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Page Chaifs Report CEO'S Report Report of the Trustees Report of the Independent Auditors g to 11 Statement of Financial Activities 12 Balance Sheet 13 Cash Flow Ststement 14 Notes to the Cash Flow Statement 15 Notes to the Financial Statements 16 10 27
HAY FESTIVAL FOUNDATION LIMITED CHAIR'S REPORT FOR THE YEAR ENDED 31 DECEM8ER 2023 l am dèlighted lo welcome you lo our 2023 Annual Report Sn our 36th year. As we continue our posl£ovid rewvery and embrace a new era for eullure 2nd the arts. al Hay Festival Foundation Ltd we are pleased lo report a successful y8ar. Al a lime when culture and the arts are more essential Ihsn ever, the charity explored subjects from Al to World conflicts, and our platfoms witnessed vital debate and Created life.changing opportunities for young people. We are proud of our work during 2023, convening audiences and artists in and between lerrilories, exploring unique ideas and fresh narratives, providing insights on the world. our lives and each other. As we bring the best minds together, we are alert lo their generosity in sharing their expertise. crealivily and shared hope for a different future. Celebrating the best in lilefftlure, spoken word, Ih@ arts, debats and di8logu&. and engaging people across the worfd shapes our work. Hay Festival Foundation operales within an ever*volving ¢onlexl, generating relevant and exciling conlenl, expanding our network of experts and artists, and shapin9 new18lenl. To meet our objectives through 2023 we expanded our reach inlemationally. with ? new Nay Fests'val ForuTn in Seville, our second year partnering Ukraine's Lviv BookForum and further Forum events in Segovia, Spain and Dallas. USA. Full festivals were held in MexicD, Peru and Colombia, while planning continued for a Panama Forum in 2024. In Wales, Hay Festival Winter Weekend, hekl al Hay Castle, vias an enormous Slfccess, a boutique version of the flagship festival in Ihe spring. enabled through Levelling Up funding through Powys County Council. Our inlemalional footprint continues lo grow. bringing ariisis together with audiences in unique spaces including theats. museums. libraries, bookshops, community cenlres, schools, caslles, greenfielé siles and public squares. Our audience engagement and outreach continued to grow in its many foims. Those who were not able lo aecess our events physically joined us online from anywhere in the worfd through Hay Festival Anytime our digital archive - and projects including our monthly Book Club. OLtr education and community engagement opportunities were exlefided: building on Hay Festival Scribbler5 Tour in Wales, funrling for additional work with early years pupils ¢affle from Arts Council England and hglped us initiate new partnerships. Inlernatsonally, Hay Festival Joven events for students and Hay Festival Comuntario ev&nls in communities offered free access lo Foslival content in Colombia. Supporting new talent, Hay Festival Academy. Writers al Work, partnerships, sludenl discounts and larnily friendly programming attracted children and young people. new talent and the audience5 of tomorrow. Hay Festival Haywon-wye 2023 in Wales demonstrated the public appetite for a relLim lo physical events. with a footfall of 170,000. We were thrilled lo welcome people across 11 extraordinary days in the beautiful Bannau Brycheiniog {Brecon B&a¢onsl National Park. This year we invested in gathering audience insights. from those who know our work an(t Ihose who have never experienced Hay Festival before. We are building knowledge of our audien$ steadfastly lo ensure relevance. anlicipale trends, evaluate innovalive ideas and ensure th31 wa can allracl Ihe broadest audience possible lo a15 places where we operate. Vve are enormously grateful lo our lunders, members. patrons. benelaclors. sponsors, partners. supporters. volunteers and the public who enable Hay Festival Global to exist and thrive, helping us raise over £5.3m this past year. Their shared interest in our mission feeds the minds and souls of all who participate. We are anlicipaling a Iransformafrv our aeliviti s,4nd actively engage Ml year in 2024 as w 04Eaudiences. récruit new slee5. de¥elop our longer-lemi slrale9y. expand Caroli Chair- Hay Festival Page 1
HAY FESTIVAL FOUNDATION LIMITED CEO'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 As a charity. we believe that Ideas can change the world and that everybody has a rlght to inspiration. By connecting communities through culture. Hay Festival Global events and projects have this at Iheir heart. At the start of this year. in an inteNiew with The Guardian, I spoke about how 2023 would be the year that Hay Fesbval reached fvrther than ever into communities with programmes offering 'somelhing for everybody,. We have kept this promise al the forefront of our work and have delivered 65 days of in-person festival events across the worfd. with our digital presence reaching out 365 days a year. In addition, our community and education engagement work spans the year wtth in-person satellit8 events. Repeatedly over the past twelve months we have heard about the transfomiaÉive power of words. At our spring festival in Wales, Dua Lipa and Slormzy explained how books began their creative joumeys; at Lviv BookFonJm In Ukraine. we heard writers on how reading was a lileline to their sense of self., and just last month as Scribblers Cymraeg toured Wales. we saw young people sparked to creativity through free workshops led by some of our best poets. 2023 was a year when culture fett MO essentlal than ever. As global conflicts raged and innovative technologies amplified divisions, culture provided an essential space to exchange ideas. build empathy and offer much-needed hope. With new partners and projects widening access lo Hay Festival content like never before. we were rewarded throughoLrt with high attendance and engagement across our events and projects. What follows here is a snapshot of this work. The generosity of spirit shown by everyone who participates in Hay Festival Global is central to the future of the charity. From funders. sponsors. patrons and benefactors to audiences. membeE5, volunteers and suppliers- to publishers. partners. ¢ollaboralors and our community of brilliant minds. and to our authors. artists and expert5, together we are all Haymakers SUPF)Orting the most worthwhile and special comucopia of ideas for a better future. Significanlly. we invested in our audiences by gathering their ideas. comments and recommendations through consultation. focus groups and suNeys. This work provided us with a rich picture of our audiences both exisling and potential. We ¢onUnued this Work by developing our brand statement, mission. vision and values as aligned to audience feedback. strategic direction and the extemal environment. As intended al the point of moving lo new charitable status in 2022. a Board recruitment process commenced resulting in the appointment of skilled trustees who joined the Board earty 2024. In December 2023 we said f8well to longstanding Board members who had steered the Festival through demanding times. We are gralefvl to our Board members all volunteers - for their expertise, challenge and support. 2023: Hay Festival Global festivals Hay Festival Jeric(i, Colombia- 20-21 January Hay Festival Medellln, Colombia - 24-26 January Hay Festival Cartagena de Indias. Colombia - 26-29 January Hay Festival Scribblers Tour. Wales - 6-16 February Hay Festival Hay•on-Wye. Wales - 25 May4 June Hay Festival Querétaro. Mexico - 7-10 September Hay Forum Dallas, USA- 9-10 Seplember Hay Festival Segovia, Spain - 14-17 September Hay Forum Seville, Spain - 5-7 October Lviv BookForum. Ukraine- 5-8 October Hay Festival Scribblers Cymraeg. Wales - 6-10 November Hay Forum Moquegua, PeTU - 8 November Hay Festival Arequipa, Peru - 9-12 November Hay Festival Winter Weekend, Wales - 23-26 November Hay Festival In numbors 320,000 tickets sold (free entry was equivalent to tickets sold) 1,200 evenls 2,020 artists 15.100 school children in formal settings taking part in extensive engagement opportunities. 975,000 unique website users 6.7m website views 401.000 social media followers 44,100,000 social media impressions Page 2
HAY FESTWAL FOUNDATION LIMITED CEO REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Year in review We began the year in celebration as we marked our 18th year in Colombia with a trio of events in Cartagena, Jerico and Medellln. More than 180 artists from 21 countries took part, including literary stars, Nobel Prize winners and acdaimed perfomers. The programme gave volce to the biggest issues of our time from the crisis in democracy. increasing inequalities and the climate crisis lo the role of culture in the spread of innovative ideas while highlighting an array of award-winning fiction and non-fiction. Hay Joven evenls for students and Hay Comunltarlo events in the barrios. (low socio economic area outside Cartagena) offered free access to Festival content more wdely. In February, Hay Festival brought five award-wnning Young Adult IYAI writers direct to thousands of Year 7-10 school pupils acTOSS Wales in free workshops. Now in its e1fth year. Hay Festival Scribblers Tour aims to engage and encourage the next generation in slorytelling and conversation. inspiring empathy and creativity. Compèred by YA novelist Jenny Valentine, sessions featured novelist Maz Evans. prize-winning poet Matt Goodfellow, 5ci-fi writer Femi Fadugba and bestselling author Caroline O'Donoghue al five Welsh universities, offering pupils a chance to visit their ne8$t university and expBrience a laste of life on campus. Also in February. as anticipation grew for our spring event in Wales, we unveiled a new partnership with the Eurovision Song Contest to mark its UK return. inviting our audience lo champion their favourite literature in our Eurovislon Book Contest. Celebrating great thinkers across disciplines, it was our honour in March to unveil the recipients of our annual Hay Festival Medals. Awarded annually since Britain's 2012 Olympic year, the medals draw inspiration from the original Olympic med81 for poetry and were given this year to Mererid Hopwood {Poetryl. Oseman (Fiction), Sethiy Zhadan {Songwritingl and Salman Rushdie (Prose). Hay Festival is 2 convener of writers. readers and - crucially - creative opportunities. As one of Wales's largest cultural institutions we are proud of our Welsh roots and take our responsibility to the ¢ultur81 landscape of Wales seriously. In April. we were delighted to relaunch Hay Festival Writers at Work, a creative development programme for emerging Welsh talent with the support of Literature Wales. fiJnded by Arts Council of Wales, with the participants joining us at our spring event. Hay Festival Wales took place 25 May4 June. bringing thousands of writers and readers together over 11 days of programming lo inspire. examine and entertain. This yeals programme launched the best new fiction and non-ffiction books, while offering insights and debate around significant global issues, worfd class comedy and music. and a vibrant programme of pop-up events, workshops and activities for all ages. With footrall up by 37 /0 on 2022 and ticket sales up by 17¥o, many first-lime festival-goers travelled from all over the world lo experience Ihe Festival and see the events. Once more, the Festival opened with our free Programme for Schools, with 7,500 pupils (primary and secondary) taking part in the live pmgramme while over 21.000 joined in digitally. In addition, 43 libraries across the UK took part in streaming free events via the BrÉtish Library and the Living Knowledge Network.. and thousands more watched online with our Online FeslNal Pass. Over the summer. the conversations continued online wilh events available to replay through our Hay Player archive and highlights shared via our media partners, the BBC, Sky Arts, TikTok, the TLS and others. Meanwhile. our Book of the Month projecl continued lo invite audiences lo engage in contemporary literature. In September. three Hay Festival events drove the conversalion across Mexico, Spain and the USA. We marked our eighth year in Mexico with Hay Festival Querétaro showcasing 151 artists over lour days in a space where imaginations are free to roam. Alongside this. we once more partnered with the Wild Detectives bookshop in Texas for Hay Forum Dallas, bridging the northlsoulh divide with cultural exchange. And then to Spain, where Hay Festival Segovia explored the way we live now with Conversations. exhibitions and performances throughout the city. plus a strand of new work with special workshops en¢ouraglng the local prison population to engage in literature. Hay Festival Querétaro also marked the culmination of activity lor writer, poet and spoken word artist Hanan Issa, the recipient of our 2022123 Cymrawd Rhyngwladol Hay Festival l Hay Festlval Internatlonal Fellowshlp. Funded by Arts Council Wales, the Fellowship supports a writer in Wales in attending Festival editions around the world while developing a writing or research project. Open to exceptional writers of all agos, it provides a unique opportunity for career development, while increasing Wales's artistic profile intemationally. Next, an act of cultural solidarity in defence of free expression.. our Collaboration wlth Ukraine's largest book festival. Lviv BookForum. continued in October as we joined them as digital media partner for their 30th edttion. supported by Open Society Foundations. Aiming to create a civic space for a free and tolerant exchange of ideas between writers and readers around the world, the hybrid programme blended 50 writers and thinkers in 30 conversations encompassing art in limes of conflict, memory. gender equality, loss. corruption, imperialism and hope. Meanwhile, in Spain, the first ever Hay Forum Sevllle took place, opening a new chapter for our charity in Europe. Page 3
HAY FESTIVAL FOUNDATION LIMITED CEO REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 At the start of November, events in ATequipa and Moquegua broLtght Hay Festlval Inspiration to audiences across Peru with 150 artists taking part in events over four days. Meanwhile in Wales, a newly-expanded Hay Festival Scrlbblers Cymraeg invlted Year 7-9 pupils to gel. creative in Welsh in Swansea, Aberystwyth, Cardiff. Bangor and Wrexham wlh workshops hosted by poet Aneirin Karadog (Bardd Plant Cymru 2023-25), writer Nia Morals and singer-songwriter Casi Wyn. Under our mission to develop opportunities for writers to bridge global divides. we were delighted lo celebrate the shortlisl and winners of the Eccles Centre & Hay Festival Writer's Award 2024 throughout November. Given annually lo two writers in the initial stages of 8 new book relating to the Americas, the £20,000 prize is now in ils 13th year. A year-end wonderland of ideas, Hay Festival Wlnter Weekend took place in Wales at the end of November with the support of the UK Shared Prosperity Fund. Seventy acclaimed artists took part in over 60 events, many hosted in a new Festival marquee erected in Ihe grounds of Hay Castle. And as we closed our year of activities, we offered a promise of next spring. previewng enhanced programmes for our first Festival events of 2024 in Colombia and the UK wth programme launches for Hay Festival Scribblers Tour- Hay Festivals Cartagena, Medellin and Jerlco., and eariy-bird events for Hay Festlval Hay4>n-Wye. Julie Finch CEO - Hay Festival Page 4
HAY FESTIVAL FOUNDATION LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 The Iruslees who are also directors of the charity for the purposes of the Companies Act 2006. present theSr report with the financial statements of the charity for the year ended 31 December 2023. The Iruslees have adopted the provisions of Accounting and Reporting by ChaTtlies- Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive l January 20191. OBJECTIVES AND ACTIVITIES Objective5 and aims The objectives of the tnjst are as follows- to further the education of the people of both the United Kingdom of Great Britain and Northem Ireland and other countries around the world in the art and science of literature, poetry and all olher forms of artistic expression. in particular by promoting public festivals. shows, readings and fairs. b) to promote study and research in literature and poetry and all other fonms of artistic expression throughout the world provided that the results of such research shall be published. to promote excellence in literature and poetry and all other forms of artislic expression throughout the wodd and in particular Ibul without prejudice to the generality of the above) to award medals andlor prizes in furtherance of this object, and d) to promote or develop for the benefit of the people o* both the United Kingdom of Great Britain and Northem Ireland and other countries around the world the art or science of literature, poetry and 211 other forms of artistic expression in all its branches and likewÈse lo promote arid develop the improvement of literature. poetry and other forms of artistic expression in the United Kingdom of Great Britain and Northern Ireland and other countries around the world. Significant actlvitles As slated in our 2022 financial statements, Hay Festival Foundation became a fully operational charity in February 2022. 2023 was the first full year of operation for the charity. The benefits of this governance and slNctural change are bedding down. Our focus has been on estsblishing our remit as a charity in relation to our mission, values and activity. therefore concentrating on priorities as sel out in our Business Plan verified by the Board. We have gathered audience insights and developed new audiences through segmentation and targeted marketing. Financial planning has improved through close budget management and an updated procurement and finance policy. Skills on the Board were updated through a Iruslee recruitment pmcess. as other Irustees retired. Public benefit Our beneficiaries include the public at large and specific groups of beneficiaries in relation to selected project worK community. and educational engagement. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activity. FINANCIAL REVIEW Financial position The Statement of Financial Accounts reports total income of £5,389,786 and lotsl expendilure of £5,091,450. Overall. an unreslricled deficit is reported of £71,615 and a restricted fund surplus 01 £369,951. Total lunds carried fOard to 2024 a £773,761. Hay Festival Foundation Ltd has operated for ils first fv1112 months since the structural change from Hay Festival of Literature and Arts Ltd. Hay Festival Foundation Ltd struggled with exponential supplier cost increases because of the cost-of4iving crisSs. war in Ukraine and the p051-pandemic recovery period extending into business-as-usual operations. However, due lo ¢areful planning, budget control, fundraislng and exploring other fomis of commercial income, the Foundation is now on a fimer financial fooling. UK Govemment announced a grant of £500,000 in the Autumn Statement: a formal grant offer and receipt of funds are anticipated during 2024. The Foundation continues to rebuild and is focusing on developing a longer-lerm business model during 2024125. Page 5
HAY FESTWAL FOUNDATION LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 FINANCIAL REVIEW Principal funding sources The Foundation generates income from several sources. Direct Festival income is raised through ticket sales, sales of books and merchandise. exhibitor fees, torporale sponsorship and other activities. The Foundation also receives service fees for its work in overseeing its international festivals as well as grants for specific projects and educational activity. All income. both direcl income generated and indirect financial support, aids the running of the Festival and helps the Foundation achieve its objectives. Reserves policy The trustees have set a policy which requires that reseNes be maintained at a level that ensures the charitys core activity could Continue during a period of unforeseen difficulty and that a proportion of reserves be maintained in a readily realisable form. The trustees consider readily realisable reserves to be the amount of reserves that are easily converted to cash should the need arise. The calculation of Ihe required level of reserves is an integral part of the charity's planning, budget and forecast cycle. 11 considers the risks associated with each slrearn of income and expenditure being different from that budgeted; the planned activity level.. and the charity's commilmenls. The Iruslees assess the reseTres policy and review it during the year. They discuss the readily realisable SeNe$ against Ihe charity's Commitments. The main risks to both income and expenditure are highlighted and a calculation of the possible ffnancial consequences of adverse movements made. The trustees use this infomialion to ensu an adequate level of readity realisable reserves is held. The reserves policy will be reviewed every year. at a minimum. by the Finance Committee, or sooner if warranted by internal or exteinal events or changes. Significant changes to Ihe policy will be recommended by the Finance Committee to the Board for approval. Currenly the optimum level of free reserves is six months of core operating expenditure. which at an average monlhly ore expenditure of £100.000 would be £600.000. At 31 December 2023. the charFty held nstrICted funds of £403.810. After accounting for those funds tied up in fixed assets of £13,880. the charity's free reserves amount to £389,930. While this is less than the optimum level of £600,000. the trustees are satisfied that the currenl resetves held are sufficient lo support the organisation in the short term and will strive to build these back to optimal level over the Coming years. A financial strategy of pwdence and care is being pursued to ensure the safeguarding of the charity's unrestricted reserves lo support the ongoing sustainability of the organisalion. FUTURE PLANS During 2023, the Foundation has embedded the new governance structure and audience insights to inform strategy and collect data. Looking forward to 2024 the main priorities are as follows.. Deliver financial sustainabllity Through exploring commercial income streams and developing a fundraising strategy to include multi-year and multi-festival support. Complete the brand review Developing our brand as we position the charity in the context of a complex extemal environment, ensuring that our values, mission, and behaviours berne a lived brand by the whole organisalion to improve our focus and impact. Audience development Building on our insights in the UK and rolling out audience development strategies lo Colombia in the first instance-, building on our equalilies. diversity and inclusion work and increasing audience participation. We will improve Ihe visitor experience through our website accessibility and content planning framework. Best In class Ensuring that our content, both digital and in person, is second to none, originating and ommissioning through smart curation. Strategic development Agreeing a 3-5-year business model built wlhin a clearly defined strategy for the longer term. Contlnual Improvoment Focusin9 on continually evaluating and exploring improvements in our work. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The tharity is registered as a charitable company, limited by guarantee. The governing documenls are its Memorandum and Articles of Association, as amended by special resolution dated 10 December 2021, updated to reflect current legislation and best practice. Recruitment and appointment of new trustees The management of the charitable company is Ihe responsibility of the tnjslees, who are elected and COpted under the terms of the Artides of Association. The selection and recruitment of new trustees is the responsibility ol the full Board. New trustees are proactively recruited to meet any skills gaps as identified by the Board. Page 6
HAY FESTIVAL FOUNDATION LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Induction and tralnlng of new trustees Each new trustee receives an induction pack setting out their legal obllgations under charity and company law, the content of the memorandum and articles of association and copies of minutes of recent meelings. New trustees are also given a briefing on the work of the Board and any individual projects as part of their induction. When appropriate, training sessions are open to Board members where the training is considered useful to their role. Rlsk management The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place lo provide reasonable assurance against fraud and error. The trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. The trustees intend to continue to review the risk management policy for the charity during 2023. REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 03490480 (England and Wales) Registered Charity number 1070073 Registered office Festival Office 25 Lion Street Hay On Wye Powys HR3 SAD Trustees C J Michel R M Boycott P J Sands J G Davies VBDeLaToThe S A Stewart A P Followell C Albert N J Butler D A Olusoga SFKhan E J Shedd M Gwynant D Jones N K Gowing J T Godfrey Lord T Burns Chair Appointed 01.11.23 Appointed 01.02.24 Appointed 01.02.24 Appointed 01.02.24 Appointed 01.02.24 Appointed 01.02.24 Appointed 01.02.24 Appointed 01.02.24 Resigned 06.05.24 Resigned 01.01.24 Resigned 01.01.24 Resigned 01.01.24 Resigned 01.01.24 Audltors MHA Statutory Auditor Elfed House Oak Tree Court Cardiff Gale Business Park CARDIFF CF23 8RS Page 7
HAY FESTIVAL FOUNDATION LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 STATEMENT OF TRUSTEES, RESPONSIBILITIES The Irusle8s {who are also the directors of Hay Festival Foundation Limi18d for the purposes ol cornpany law} are responsible for preparing the AnnLtal Repori and the financial slalemenls in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees lo prepare financial slalements for each financial y&ar which give a true and fair view of the slate of affairs of11)e charitable company and of the incoming resources and application of resources. including the income and expenditure. ol the eharitable company for that period. Ir¢ preparing those linancial slalemenls, the Irusle8S are required lo select suitable accounting policies and then apply them consi$tenlly-, observe the methods and principles in the Charity SORP., make judgements and eslimales that are reasonable and prudent., prepare Ihe financial statements on the going concern basis unless il Is inappropriate lo presume that the charitable company will continue in business. The Iruslees are responsible for keeping proper accounting records which disclose with reasonable accuracy al any time the financial position of the charitsble eompany and to enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and deletstion ol fraud and other irregularities. In so far 8s the Iruslees are aware= there is no relevant audit inforfflation of which the charitsble company's auditors are unaw8re', and the Iruslees have tak&ii all Steps that they ought lo have taken to make themselves aware of any relevant audit information and lo establish that the auditors are aware of that information. AUDITORS The auditors. MHA. will be proposed for re-appoinlmenl al the forthcoming Annual General Meeting. and signed on its behalf by- C J Michel - Chair Page 8
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HAY FESTIVAL FOUNDATION LIMITED Oplnlon We have audited the financial statements of Hay Festival Foundation Llmlted (the 'charitable company'l for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet. the Cash Flow Statement and notes lo the finan¢ial statements. including a summary ol significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)- In our opinion the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 December 2023 and of ils In¢omlng resources and application of resources, including ils income and expenditure, for the year then ended,. have been propedy prepared in accordance with United Kingdom Generally A¢pted Accounting Practice,. and have been ppared in accordance with the requirements of the Companies Act 2006. Basis for oplnlon We conducted our audit in accordance with International Standards on Auditing {UK) {ISAs (UK)) and applicable law. Our sponsibilities under those standards are further described in the Auditors. responsibilities for the audil of the financial statements section of our report. We are independent of the charltable company in accordance with the ethical requirements that are relevant lo 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 requirement5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In audiling the financial statements. we have conGiuded that the trustees, use of the going concem basis of accounting in the preparation of the financial slatements is appropriate. Based on the work we have perfomjed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may c8St signifiGant doubt on the charitable companls ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and Ihe responsibilities of the Injstees wtlh respect to going concern are described in the relevant sections of this report. Other Information The trustees are responsible for the other infomiation. The other information comprises the information included in the Annual Report, other than the financial statemenls and our Report of the Independent Auditors Ihereon. Our opinion on the financial statements does not cover the other infomi8tion and, except lo the exient otherwise explicitly stated in our report. we do not express any foTh of assurance condusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other infomialion and. in doing so. consider whether the other information is materially inconsistent with the financial slalements or our knowledge obtained in the audit or otherwise appears to be mateiially misstated. If we identify such material inconsistencies or apparent material misstalements. we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If. based on the work we have perfomed, we conclude that there is a material misstatement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescrlbed by the Companles Act 2006 In our opinion, based on the Wofk undertaken in the course of the audtt.. the information given in the Report of the Trustees for the financial year for which the financial stalements are prepared is consistent with the financial statements- and the Report of the Trustees has been prepared in accordanoe with applicable legal requirements. Matters on whlch we are required to report by exception In the light of the knowledge and understsnding of the charitable company and its environment obtained in the wurse of the audit, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Ad 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept or retums adequate for our audit have not been received from branches not V151ted by us., or the financial statements are not in agreement with the accounting records and relums; or certain disclosures of trustees. remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit.. or Ihe trustees were not entiued lo take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. Page 9
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HAY FESTIVAL FOUNDATION LIMITED Responsibilities of trustees As explaSned more fully in the Statement of Trustees, Responslbilllies, the trustees (who are also the dire¢tOTS of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for such internal control as the trustee5 determine is necessary to enable the preparation of financial statements Ihat are free from material misslalement. whether due lo fraud or error. In preparing Ihe financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going conrn and using the going concem basis of accounting unless the Iruslees either intend to liquidate the charitable company or to cease operations, or have no realistic altemative bul to do so. Our responsibilities for the audit of the financial statements Our objectives are to obtain reasonable a55urance about whether the financial slalements as a whole are free from material misstatement, whether due to fraud or error. and to issue a Report of the Independent Auditors that indudes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance wth ISAS (UK) will always delect a material misstatement when il exists. Misstatements can arise from fraud or error and are considered material if. individually or in the aggregale, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecling irregularities, including fraud is detailed below.. ITregularities, including fraud, are instances of non-complian with laws and regulations. We design procedures in line with our responsibilities. outlined above, to detect material misstatements in respect of irregularilies. including fraud. The specific procedures for this engagement and Ihe exlenl to which these are capable of detecting irregularities, including fraud is detailed below-. Enquiries of management. those charged with govemance around actual and potential litigation and claims.. Performing audit work over the risk of management override of controls, induding lesling of joumal entries and other adjustrnents for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business- Reviewing minutes of meetings of those charged with governance: Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. Because of the inherent limitations of an audit there is a risk that we will not detect all irregularities. including those leading to a material misstatement in the financial statements or non-compliance wtlh regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements as we will bè less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error. as fraud involves intentional concealment. forgery, collusion, omission or mi5represenlations. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.ukJauditorsresponsibilities. This description forms part of our Report ot the Independent Auditors. Page 10
REPORT OF THE INDEPENDENT AUDITORS TO THE MEM8ERS OF HAY FESTIVAL FOUNDATION LIMITED Use of our report This report is made solely to the charitable company's members. as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to stale to them in an auditors. 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 charitable company and the charitable company's members as a body. for our audit work, for this report, or for the opinions we have fomied. Julia Mortimer {Senior Statutory Auditor) for and on behalf of MHA Statutory Auditor Elfed House Oak Tree Court CARDIFF CF23 8RS Date..i.9..1. MHA is the trading name of Maclntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313) Page 11
HAY FESTIVAL FOUNDATION LIMITED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 DECEMBER 2023 2023 Total funds 2022 Total funds Unrestricted fund Reslrtcled funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 223,888 21,689 245,577 976,027 Charltable a¢tivltle$ Hay Festival Partnership working School programme International festival support 3,912,145 714,081 4.626.226 3,242,462 30,000 151.453 281,274 141.578 141,578 351,260 351,260 Investment income Other income 16.301 8.844 16,301 8.844 1.195 5.219 Total 4,512,438 877.348 5 389.786 4,687.630 EXPENDITURE ON Charitable activities Hay Festival Partnership working School programme 4.584.053 365.819 4,949,872 4,449.410 30,000 151,453 141,578 141.578 Total 4.584.053 507.397 5.091,450 4.630.863 NET INCOMEI(EXPENDITURE) {71,615) 369,951 298,336 56,767 RECONCILIATION OF FUNDS Total funds brought fonmard 475,425 475.425 418.658 TOTAL FUNDS CARRIED FORWARD 403,810 369.951 773.761 475.425 The notes form part of these financial statements Page 12
HAY FESTIVAL FOUNDATION LIMITED BALANCE SHEET 31 DECEMBER 2023 2023 Total funds Unre8lricled fund 2022 Total funds Reslricled lunds Notes FIXED ASSETS Tangible asset5 13 13.880 13,880 13.290 CURRENT ASSETS Stocks Debtors Cash al bank 14 15 13.779 89,893 750.297 13,779 230.480 979.661 24.863 164.393 720,006 140,587 229.384 853,969 369,951 1.223,920 909.262 CREDITORS Amounts falling due within one year 16 1428.7791 1428.1791 1391,0741 NET CURRENT ASSETS 425.790 369.951 795,741 518.188 TOTAL ASSETS LESS CURRENT LIABILITIES 439,670 369,951 809,621 531.478 CREDITORS Amounts falling due after more than one year f7 (35.8601 135,8601 156.0531 NET ASSETS 403,810 369.951 773,761 475.425 FUNDS Unrestllcled funds Restricted funds 20 403.810 369.951 475.425 TOTAL FUNDS 773,761 475,425 Thess financial statements have been pr8P8red in accordance with the provisions applicable lo charitable companies subjèct lo the small cornpanie5 regime. The fi ncial statements were approved by the Board of Trusle9s an¢ aulhoiised for tssue on .. J. &.l.Tr.l.?_*-. .. and were signed on its behalf by.. C J Michel - Chair The noies form part ol these financial s1819menls Page 13
HAY FESTIVAL FOUNDATION LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Notes Cash flows from operating activities Cash generated from operations 272.851 201,991 Net cash provided by operating activities 272 851 201991 Cash flows from Investing activities Purchase of tangible fixed assets Interest received (9.304) 16,301 (17,1631 1,195 Net cash provided byl{used In) investing activities 6,997 15.968) Cash flows from financing actlvltles New loans in year Loan repayments in year 76,053 20.193} Net cash (used inyprovided by financing activities 20,1931 76.053 Change In cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period 259.655 262.076 720,006 457.930 Cash and cash equivalents at the end of the reporting period 979,661 720,006 The notes form part of these financial statements Page 14
HAY FESTIVAL FOUNDATION LIMITED NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 2023 2022 Net income for the reportlng perlod las per the Statement of Financlal Activities> Adjustments for: Depreciation charges Interest received Decreasellincreasel in stocks Increase in debtors Increase in creditors 298.336 56,767 8,714 (16.301) 11.084 (66,087) 37,105 3,873 {1,195) {24,863) {155.430) 322,839 Net cash provlded by operalians 272,851 201,991 ANALYSIS OF CHANGES IN NET FUNDS At 111123 Cash flow At 31112123 Net cash Cash at bank 720,006 259,655 979.661 720.006 259.655 979.661 Debt Debts falling due wilhin 1 year Debts falling due after 1 year (20.0001 56,053 (20,000) 35.860 20,193 76,053 20.193 55.860 Total 643,953 279.848 923.801 The notes form part of these financial statements Page 15
HAY FESTIVAL FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 STATUTORY INFORMATION Hay Fesllval Foundation is a registered charity and private company Ilmited by guarantee having no share capital. It is incorporated in Wales in the United Kingdom. The registered office is The Drill Hall, 25 Lion Street, Hay-on-wye, HR3 SAD. The nature of the charitable company's operations and principal activities are disclosed within Ihe Report of the Trustees. The financial statements are presented in Sterting (£), the charitable company's functional currency. and rounded to the nearest pound. The significant accounting policies applied in the preparation of these financial statements are sel out below. These policies have been consistenuy applied to all years presented unless otherwise stated. ACCOUNTING POLICIES Basis of preparing the financial statements The financial slalements of the charitable company, which is a public benefit entity under FRS 102. have been prepared in accordance with the Charities SORP {FRS 102) 'Accounting and Reporting by Charities- Slalement of Recommended Practice applicable to charitie5 preparing their accounts in accordance with the Financial Reporting Slandard applicable in the UK and Republic of Ireland IFRS 102} {effective 1 January 20191,, Fin8ncial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. and the Companies Act 2006. The financial statements have been prepared under Ihe hislorical cosl convention. There have been no material departures from Financial Reporting Standard 102. Going concern No material uncertainlies exist relating to events or conditions that may cast significant doubt upon the entity's ability to continue as a going concem. Income All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. This includes capilal grants. Donations and legacies ineome Donations and legacies income includes donations. gifts and grants that provide core funding or are of a general nature and are Trcognised where there is entitlement. probability of receipt and the amount can be measured with sufficient reliability. Such income ts onty deferred when the donor speclfies it must be used in future accounb-ng periods or the donor has imposed conditions which must be met before the charity has unconditional enlillement. Income from charitable acttvilies includes income received under contract or where enlillement to grant funding is subject to specific performance conditions. This income is recognised where there is entitlement, when the receipt is probable and the amount can be measured reliably. Income is deferred when the amounts received are in advance of the performance of the service or event to which they relate. Membership fees are accounted for in the period to which they relate. Investment income Is recognised on a receivable basis. Expenditure LSabilities are recognised as expenditure as soon as there is a legal or construcllve obllgallon committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in setuemenl and the amount of the obllgalion ¢an be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings th8t agggate all cost related lo the Category. Where costs cannot be directly allribuled to particular headings they have been allocated to actSvities on a basis conslstent with the use of resources. Expenditure on charilable activities comprises those c051s incurred by the charity in the delivery of ils activities and services for its beneficiaries. It includes both costs that can be allocated directly lo such activities and Ihose cosls of an indirect nature lo support them. Page 16 continued...
HAY FESTIVAL FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 310ECEMBER 2023 ACCOUNTING POLICIES- continued Expenditure Support costs are those costs that, whilst necessary to deliver an activity, do not themselves produce or constitute the output of the charitable activity. This includes govemance costs which are Ihose costs associated with meeting the conslilulional and statutory requirements of the charity and include the accountancy fees and costs linked lo the strategic management of the charity as well as a proportion of salaries based on an approximation of time spent in Ihi$ area. Expenditure includes any VAT which can not be fully recovered and is reported as part ot the expenditure to which il relates. Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset (less expected residual value) over its estimated useful life. Computer equipment 33.33'k on cost Fixed assets are initially recorded at cost. Only assets which cost £500 or more are capitalised. Stocks stocks are valued at Ihe lower of cost and nel realisable value. after making due allowance for obsolete and slow moving items. Taxation The charity is exempt from corporalion tax on its charitable activities. Fund accounting Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are rdised for particular restricted purposes. Further explanation of the nature and purpose of each fund 15 included in the notes to the financial statements. Pension costs and other post4etirement benefits The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activtties in the period to which they relate. Operating leases Rent81s applicable to operating leases where substantially all of the benefits and risks of the oWnehIp remain with the lessor are charged against profits on a straight line basis over the period of the lease. The benefits of leas0 incentives are recognised in the profit and Ioss account over Ihe lease period. Basis of recognition of liabilities Liabilities are recognised as soon as there is a legal or Constructive obligation which commits the charity lo Ihe expendl1u. Financlal Instruments The charity only has financial assets and financial li8bilitSes of a klnd that quallfy a5 baslc financial Instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Trade and other debtors are recognised at the settlement amounl due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounls due. Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in Ihe transfer of funds to a Ihird party and Ihe amount due to settle the obligation can be measured or eslimaled reliably. Creditors and provisions are normally recognised at Iheir settlement amount after allowin9 for any trade discounts due. Page 17 continued.
HAY FESTIVAL FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS . contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES- ¢ontinued Slgnificant accounting judgements and estlmates Estimates and judgements are continually evaluated and are based on historical experience and olhef relevant factors, including expectations of future events that are believed to be reasonable under Ihe clrcumstances. The preparation of the financial statements requires management to make estimates and assumptions concerning the futu. The resulting accounting estimates will, by definilion, be likely to differ from the related actual results. No estimates or assumptions have been identified that have significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year. DONATIONS AND LEGACIES 2023 2022 Membership income Donations Gift aid Grdnls Hay Player subscriptions 128.483 46,599 23,831 21.68g 24,975 136,497 56.440 27,038 723,307 32.745 245,577 976.027 Grants received. included in the above, are as follows- 2023 2022 Welsh Government- Cultural Recovery Fund Round 3 Arts Council Wales - Hay Festival 2022 1 Hay Festival Intemalional Focus Arts Council England - Culture Recovery Fund continuity support Interns funding 61,640 50.000 600.000 11.667 21.689 21,689 723.307 INVESTMENT INCOME 2023 2022 Deposit a¢¢ount interest 16,301 1,195 INCOME FROM CHARITABLE ACTIVITIES 2023 2022 Activity Ticket sales Hay Festival Book sales Hay Festival Sponsorship income Hay Festival Exhibitors Hay Festival Grants Hay Festival Other festival related income Hay FesltV81 Festival related merchandise Hay Festival Grants Partnership W01n9 Grants School programme Management fees International festival support 1.842.691 649.942 764,751 170,629 714.081 374,291 109,841 1.490,424 525,208 641.913 191.930 27.739 277,317 87.931 30.000 151,453 281,274 141.578 351,260 5.119,064 3.705,189 Page 18 continued.
HAY FESTIVAL FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - ¢ontinued FOR THE YEAR ENDED 31 DECEMBER 2023 INCOME FROM CHARITABLE ACTIVITIES - contlnued Grants received, included in the above, are as follows.. 2023 2022 The British Council - Supporting a series of literature events The British Council - Digital Partnership Lviv Inlemational Bookforum 2022 Welsh Government- Hay Festival Schools Pfogramme 2021-22 Welsh Government - Hay Festival Schools Programme 2022-23 Urliversity of Soulh Wales - Scribblers Day WOM@ARTS projects Hawthornden Foundation - reach of engaging audiences Arts Council Wales - Writers at Work Arts Council Wales - International Fellowship Award Welsh Government- Hay Festival Schix)Is Programme 2023-24 UnwTn Charitable TnJst- development Alliance for Open Society International - 2023 The Elmley Foundation - Hay Festival 2023 Arts Council England - Audience Development Powy5 County Council - UK Shared Prosperity Fund Alliance for Open Society Intemalional - 2024 21,500 30.000 40.000 111,453 3,450 2.789 40,000 19,348 49,348 24,500 101.578 300.000 100.796 20,000 29,486 120,000 50.603 855.659 209.192 CHARITABLE ACTIVITIES COSTS Direct Costs {see note 7) Support costs (see note 8) Totals Hay Festival School programme 4.241,733 141,578 708.139 4.949,872 141,578 4,383,311 708,139 5,091.450 DIRECT COSTS OF CHARITABLE ACTIVITIES 2023 2022 Staff costs DI¢t cosls - Hay Festival I Winter Weekend Bookshop costs Merchandise costs Slaff costs - festival event direct 841.746 2.779,605 399,173 45.150 317,637 587,215 2.586,734 315,930 42.045 239.168 4.383.311 3.771,092 SUPPORT COSTS staff costs Finance Depreciation Hay Festival 168,307 4,601 8.714 Page 19 continued...
HAY FESTIVAL FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS . contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 SUPPORT COSTS - continued Governance costs Other Totsls Hay Festival 515.342 11,175 708,139 NET INCOMEIIEXPENDITURE) Net incomel(expenditurel is stated after chargingl(crediling)- 2023 2022 Auditors, remuneration Depreciation - owned assets 6.000 8,714 5.500 3.873 10. TRUSTEES. REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 31 December 2023, or for the year ended 31 December 2022. TNstees' expenses During the year, trustee expenses were paid to two truslees tolalling £497 in respect of Iravel expenses12022: £NIL). 11. STAFF COSTS 2023 2022 Wages and salaries Social Security costs Pension costs 1.167.871 109.802 15,395 838,637 89,047 13.495 1,293,068 941.179 The average number of employees during the year.. 27 21 The prior year comparative salary costs are only for an 11-month period, due to Ihe legal restructure taking place on 31 January 2022. The above average number of employegs are on monthly salaries. In addition to the above, the charity ran a weekly payroll, during the weeks of the Hay Festival event held in Mayl early June and for the Winter Weekènd. The number of employees on the weekly payroll during this very short period varies but an indicative range is beeen 2- 102 employees. The number of employees whose employee benefits {excluding employer pension costs) exceeded £60.000 was.. 2023 2022 £60,001- £70.000 £70,001- £80,000 £110,001- £120,000 Page 20 continued.
HAY FESTIVAL FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 11. STAFF COSTS - contlnued In addition lo this, pension contributions of £3.963 {2022.' £1,211) were ceiVed by these employees. The total key management personnel remuneration during the year was £451.20412022.. £331,475), the increase is primarily due to the timing of appointment of the Chief Executive Officer post in August 2022. 12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted fund Restricted funds Total funds INCOME AND ENDOWMENTS FROM Donations and legacies 976,027 976,027 Charitable activities Hay Festival Partnership working School programme Intemational festtval support 3,214.723 27,739 30.000 151,453 3,242.462 30,OIX) 151.453 281,274 281.274 Investment income Other income 1.195 5.219 1,195 5.219 Total 4.478.438 209,192 4,687.630 EXPENDITURE ON Charitable actlvltles Hay Festival Partnership working School programme 4,421,671 27.739 30,000 151,453 4,449,410 30,000 151.453 Totsl 4.421.671 209.192 4.630.863 NET INCOME 56,767 56,767 RECONCILIATION OF FUNDS Total funds brought fofward 418.658 418,658 TOTAL FUNDS CARRIED FORWARD 475.425 475.425 Page 21 contsnued...
HAY FESTIVAL FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023 13. TANGIBLE FIXED ASSETS Computer equipment COST At 1 January 2023 Additions 17,163 9.304 At 31 December 2023 26.467 DEPRECIATION At 1 January 2023 Charge for year 3,873 8,714 At 31 December 2023 12,587 NET BOOK VALUE At 31 December 2023 13.880 At 31 December 2022 13.290 14. STOCKS 2023 2022 Merchandise stock 13,779 24.863 15. DEBTORS: AMOUNTS FALLING DUE THIN ONE YEAR 2023 2022 Trade debtors Gift aid reVerable Other debtors Prepayments and accrued income 6.233 3,432 3,204 217.611 51.668 4.087 24,538 84,100 230.480 164.393 16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2023 2022 Bank loans and overdrafts (see note 181 Trade creditors Social security and other taxes VAT Other creditors Accruals and deferred income 20.000 129.225 25,947 9,057 7,252 236,698 20,000 67.033 21.257 15,428 8.757 258.599 428.179 391.074 Page 22 continued...
HAY FESTIVAL FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 16. CREOITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR . continued Included within accruals and deferred income above is the following deferred income: 2023 2022 Benefaclor membership in advance Caterer deposits in advance Exhibitor deposits in advance Inlemational festivals ticket sales Early bird ticket sales for Hay Feslival Intern salary funding Other advanced ticket sales 23,519 21,112 2,025 7,500 40,480 100,323 6.509 1.760 136,464 167.483 172.209 Of the opening deferred income. £158.690 has been released lo the Statement of Financial Activities. An element of £13.519 has been carried forward as ongoing Benefactor membership in advance. All other deferred income entries at 31 December 2023 relate to new income received in advance of delivery, relaling to the Hay Festival May 2024. 17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2023 2022 Bank loans (see note 18) 35,860 56.053 18. LOANS An analysis of the maturity of loans is gNen below-. 2023 2022 Amounts falling due wthin one year on demand.. Bank loans 20,000 20.000 Amounts falling between one and tsvo years= Bank loans- 1-2 yeats 20,000 20,000 Amounts falling due beeen tsvo and five years.. Bank loans - 2-5 years 15,860 36,053 19. LEASING AGREEMENTS Minimum lease payments under non-cancellable operating leases fall due as follows: 2023 2022 Within one year Beeen one and five years 64,254 72,156 54,279 115.372 136,410 169,651 Operating lease payments recognised as an expense durlng the year amounted to £60,73812022- £53,393). Page 23 continued...
HAY FESTIVAL FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS . contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 20. MOVEMENT IN FUNDS Net movement in fund$ At 31112123 Al 111123 Unrestricted funds General fvnd 475,425 {71,615) 403,810 Restricted funds Support and Development Latin America festivals Alliance for Open Society Intemalional 2024 300.000 19,348 300.000 19.348 50.603 50.603 369.951 369,951 TOTAL FUNDS 475.425 298.336 773.761 Net movement in funds, included in the above are as follows: Incoming resources Resources expended Movement in funds Unrestricted funds General fund 4,512,438 (4.584,053) {71,615) Restricted funds Schools programme 2022-23 Schools programme 2023-24 Audience Development Writers at Work International Fellowship Award Intern funding Alliance for Open Society International 2023 H8y Festival 2023 Support and Development Latin America festivals Winter Weekend festival Alliance for Open Society Inlemational 2024 40,000 101,578 29.486 49,348 24,500 21.689 (40,000) (101.5781 129,4861 149,3481 {24,5001 {21.6891 100,796 20.000 300,000 19,348 120.000 {100,796) (20.000) 300,000 19,348 (120.0001 50,603 50,603 877,348 507.397) 369,951 TOTAL FUNDS 5.389,786 5,091,450) 298.336 Comparatlve$ lor movement In funds Net movement in funds Ai 31112122 At 111122 Unrestrlcted funds General fund 418,658 56,767 475,425 TOTAL FUNDS 418.658 56.767 475.425 Page 24 continued..
HAY FESTIVAL FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 20. MOVEMENT IN FUNDS- continued Comparative nel movement in funds, included in the above are as follows.. Incoming resources Resources expended Movement in funds Unrestricted funds General fvnd 4,478,438 (4.421,671) 56,767 Restrlcted funds Partnership l Lviv International Bookforum 2022 Schools programme 2022-23 Series of literature events and commissions Schools programme 2021-22 - Scribble tour February 2022 Scribblers Day WOM@ARTS projects 30,000 111,453 130.0001 1111,453) 21.500 (21,500) 40,000 3.450 2.789 (40.000) 13,450) 209,192 209.192) TOTAL FUNDS 4,687.630 4.630.863) 56.767 Welsh Government Sehools Programme 2022-23 An element of the 2022-23 Schools Programme related to the planning and delivery of a Scribblers Tour,. pan-wales lour of live literature tor students at Key Stage 3 and Key Stage 4 hosted by the nation's top universilies - delivering inspirational speakers on inspiring campuses across Wales in February 2023. Welsh Govemment Schools Programme 2023-24 The purpose of the funding is to support Hay Festival Schools Programme and activities for 2023-24 including a Schools Programme that took place at Ihe Hay Festival in May 2023. which was broadcast live and offered live and online events across primary and secondary school children. The funding also included the Welsh Language Scribbler5 Tour held in November 2023. Audience Development Funded by Arts Council England, project title.. Audience Development. A strategic audience development and consultation project to enable Hay Festival to develop relationships with currently underserved audiences. focused on engaging children, families and young people who fa multiple challenges. alongside a career progression programme for young people aged 16-25. Writers at Work Funded by Arts Council of Wales, project title- Writers at Work. This project joined together a group of peers with a group of writers. The residential aspect of the project pr()vided a great opportunity for the writers lo develop their work and ideas in a focused. collaborative. constructive and industry-driven environmenl. The projecl connected writers from across Wales. This was a 7-day programme packed with workshops. events and meetings which allowed the writers to leam, share and challenge on writing and thoughts. International Fellowship Award Funded by Arts Council England, the fellowship provides an opportunity for a writer from Wales to participate in Hay Festival editions throughout the year including, bul not limited to Wales. Colombia, Spain, Pew and Mexico. It Is open to exceptional, ambitious and imaginative create individuals, working within the art form of lileralure, writing in Welsh or English. in fiction or non-fiction. The Fellowship provides a unique opportunity for career development, while Increasing Wales's artistic profile internationally. Intern funding Funding specifically towards intern placement costs. Page 25 conlinLted..
HAY FESTIVAL FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - Continued FOR THE YEAR ENDED 31 DECEMBER 2023 20. MOVEMENT IN FUNDS- continued Alliance for Open Soclety Intematlonal Funded by Alliance for Open Society Intemational, a grant for the purpose of supporting Ukrainian talent and promotion of understanding of Ukraine through intemational conversations. Support and Development Funded by The Unwin Charitable Trust lo help to continue, support and nurture future writers through our flagship festival. Hay Festival Wales. To develop and deliver new projects across the UK that bring together the many part of the publishing world, linking authors, publishers and booksellers wilh readers who might overwise be hard to reach. This funding is for a 3-year period across Hay Festival Wales 2024125126 and 8$5ociated events. Latin America Funded by Hawthornden Foundation, a grant to Hay for the festivals in Latin America to support writers and develop aders. Winter Weekend Funded by Powys County Council, relating to the delivery of activities under the UK Shared Prosperity Fund supported by UK Government, towards the Winter Weekend festival held in November 2023 at Hay on Wye. Prior ear onl Lviv International aookforum 2022 Grant awarded by The British Council for the purpose of the delivery of digital partnership and programme beiween the charity and the Lviv International Bookfowm 2022. which is an important part fo the UKI Ukraine Season of Culture 2022, organised by the British Council and Ukrainian Inslitule. Welsh Government Schools Programme 2022-23 The pUoSe of the funding was to support Hay Festival Schools Programme and activities for 2022-23 including a Schools Programme that Iix)k place al the Hay Festival in May 2022, which was broadcast live and offered live and online events across primary and secondary school children. The programme also included The Beacons Project 2022 are also look place at the Hay Festival 2022 wheTr groups of talented and developing leamers allended the festival frjr a 4 day residential course. The funding also included the Welsh Language Scribblers Tour held in November 2022. Hosted in Aberystsvylh and Bangor Universities. 2 days of events conducted entirely in Welsh. Series of Llterature events and commtssions Grdnl awarded by The British Council for the purposes of supporting a series of literature events and commi55ions at Hay Festival, Wales and the Intemation81 Hay Festivals. University of South Wales - Scrlbblers Day The University of South Wales hosted a day of the Hay Festival Scribblers Tour during Febnjary 2022. WOM@RTS projects WOM@ARTS aimed to highlight and support the creativity of women in the Arts. This grant funding was provided for Wom@rt5 projects at Hay Festival. 21. EMPLOYEE BENEFIT OBLIGATIONS The charity operates a defined contribution scheme. The pension costs charge for the year represents contributions payable by the charity lo the scheme and amounted to £15,39512022.' £13,495). At the year end. there were outstsnding conlrlbutions of £3.256 (2022: £2.9551. Page 26 continued...
HAY FESTIVAL FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023 22. RELATED PARTY DISCLOSURES The Hay Foundation was initially created to support the aims of the Hay Festival of Literature and the Arts Limited and the Foundation undertook its chari18ble a¢tivilies through this company and as such il is considered to be related party. With effect from 31 January 2022, a legal restructure took place to transfer the assets, liabilities, and undertaking of the Hay Festival of Literature and the Arts Limited to the Hay Festival Foundation Limited. This transaction was ¢arried out as a transfer of a going concern through a legal Iransfer agreement. As a result, included wlhin the prior year Governance cosls is an amount of £227,591. representing a Cost to the Foundation of taking on the assets and liabilities of the Hay company. During the current year a balance of £261 has been written off to the Slatemer¢t of Financial Activities. Page 27