Charity registration number 1074552 Company registration number 03685496 (England and Wales) THE FOLKLORE SOCIETY ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 THE FOLKLORE SOCIETY LEGAL AND ADMINISTRATIVE INFORMATION Trustees Prof O Davies - )fice President Dr H Frisby Prof D M Hopkin - President Prof R P Jenkins Ms S Kingshill Secretary Ms S Kingshill Senior Librarian Dr C Oates Editor of Folklore Dr J Hemming Company number 03685496 Principal Office 50 Frtzroy Street London W1T 5BT Registered office Globe House Eclipse Park Sittingboume Road Maidstone Kent ME14 3EN United Kingdom Independent examiner S Jennings FCA Azets Audit servI￿s Globe House Eclipse Park Sittingboume Road Maidstone Kent ME14 3EN Bankers CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Solicitors Alan Murdie. LL.B. Barrister Nucleus Legal Advice 298 Old Brompton Road London SW5 9JF Investment Managers CCLA Investment Management Limited Senator House 85 Queen Victoria Street London EC4V 4ET THE FOLKLORE SOCIETY CONTENTS Page Trustees, report Statement of trustees. responsibilities Independent examinerfs report ststement of financial aGlivities 10 Balance sheet Notes to the financial statements 13-25 THE FOLKLORE SOCIETY TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their report and financial statements for the year ended 31 December 2023. The trustees have adopted the provisions of the Statement of Recommended Practice {SORPI "Accounting and Reporting by Charities- (FRS 102) in preparing the annual report and financial statements of the charity. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's goveming document. the Companies Act 2006 and 'Accounting and Reporting by Charities= Statement of Recommended Practice applicable to charities preparing their accounts in accordan￿ with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 2019)" Objectives and activities The Folklore Society was founded in 1878. It was one of the first organisations in the world to be devoted to the study of traditional vemacular culture. Its objectives are to foster folklore research and recording worldwide, and to make the results of these studies available to all persons whether members of the Society or not. With effect from the year 2001, membership of the Society was available both to institutions and individuals through subscription to its journal Folklore. This is on a joint-venture basis with the publisher, Taylor & Francis Plc. From 2003 the publication frequency was increased from twice to three times per year. and this was increased again to four times per year from 2017. The Society and Taylor & Francis PIC exercised their option to mutually renew the joint venture by entering into a new licence agreement for publication of Folklore for a further ten years with effect from 1 January 2017. The Society operates its administrative facilities from 50 Fitzroy Street. London W1T 5BT, a building owned by The Royal Anthropological Institute. The Society's rights and obligations in respect of its occupancy at 50 Fitzroy Street are reflected in a licen￿ agreement. underwritten by the Director of The Royal Anthropological Institute. Following renegotiation in 2022 the Society currently pays £10,535 per annum for its licence, updatable annually in line with inflation. The licensee and licensor are required to give ￿e1ve months, notice of tennination. The current licence expires on 27 July 2029. Under this licence, Folklore Society members may visit the FLS Office by appointment to consult with the librarians and view the society's most recent folklore periodicals the referen books that are kept there. Most of the Society's library is retained under a continuing custodial with University College London, which maintains the library on a retrieval basis and insures it at no cost lo the Society. The membership of the Society is granted membership of the libraries of University College London at no additional cost in order that they may access and borrow books. The Society's Rare Books. Archives and Collections are housed at UCL Library Special Collections, currently in temporary quarters at the National Archives at Kew and will eventually move to a new location with UCL Special Collections. They are held and insured by University College London al no cosl to the Society. They are accessible with notice and upon request. Artefacts are held on loan at other institutions and museums, and the Canziani paintings are held at UCL Special Collections. Public benefit The trustees confirm that they have referred to the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities. THE FOLKLORE SOCIETY TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Achievements and performance The Annual General Meeting 2023 was held on Friday 16 June al 50 Fitzroy Street. in-person and on-line. Only the 16 members attending in person were eligible to vote at the AGM. Prof. Owen Davies delivered his Presidential Address 2023- 'A Folklorist looks at l￿-creaM Vans.. The lecture was live-streamed, free, to the general public, to an audien￿ of 160, and a recording is freely available at https'.Ilyoutu.belS6zU7EIN4U4. The article is published in Folklore vol.13511, 2024. At the AGM, Prof. David Hopkin was elected as President and Trustee. Prof. Owen Davies continues as a Trustee and ViGe-President. Prof. Patricia Lysaght stepped down from the Board. Prof. Richard Jenkins {Hon. Treasurer), Ms Sophia Kingshill (Hon. Secretary) and Dr Helen Frisby (Participation Officer) all continue as Trustees. The following Council members were re-elected for 2023-26: Dr Matthew Cheeseman,. Prof. Owen Davies., Dr Helen Frisby,. Prof. James Grayson; Prof. David Hopkin- Prof. Richard Jenkins,. Ms Sophia Kingshill,. Dr Nicholas Le Bigre: Dr Kate Smith. Continuing Council members: Dr Paul Cowdell., Dr Oliver Douglas: Mr Jeremy Harte., Dr Jessica Hemming; Dr Ceri Houlbrook" Mr Ross Macfarlane" Mr Mark Nomian, Prof. lan Russell" Dr Juliette Wood. The flagship event for the Society is the annual Katharine Briggs Lecture, commemorating the work of this key figure in folklore scholarship. The 2023 Lecture was given on 7 November at the Indian YMCA. Fitzroy Square, London, by Prof. Paul Gilroy. Folk Tradition and the Choosing ofAncestors,' to an audience of c.50 people. The leGture was free and open lo the public. In 2023. the Society made various awards to promote the academic study of folklore. The prestigious Katharine Briggs Award, for the best book in folklore studies entered for the award, was presented after the Katharine Briggs Lecture 2023, to Una Mcllvenna, for her book Singing the News of Death.. Execution Ballads in Europe, 1500-1900 (published by Oxford University Press). There were 24 entries for the Katharine Briggs Award 2023. Recognising the importance of supporting the growth of the next generation of folklore scholars, the Society awards the Estella Canziani Bursary for Post-Graduate Research (worth up to £1,000). A Bursary for 2023 was awarded to.. Claire Slack {D.Heritage student, University of Hertfordshire) for a fieldwork research project 'Sharing Sacred Spaces.. Engagements with the contemporary heritage of British Pagan sacred sites., The President's Prize of £150 is an annual award made for a student essay- The 2023 President's Prize was awarded to Xinrui Xie {University of Edinburgh) for her essay. Shadowed Maternity= The Perpetuating Ambivalen￿ towards Motherhood in Ubume Narratives., The society gratefully acknowledges the annual donation of £60 from Prof. John Widdowson, former President of the society and founder of the prize. The society's Annual conference 'Folklore, Geography and Environment,. 14-16 July 2023 was a hybrid international event held on-line and at The Wilberforce Institute. University of Hull. 39 people attended in person, and 33 on-line. with speakers from around the wortd. In gratitude for hosting the conference gratis, the society offered a donation of £1,323 to The Wilberforce Institute. The society's Newer Researchers one-day workshop, usually every two years. aims to encourage the work of early career researchers in the field of folklore and related studies. The 2023 workshop 'Folklore Now!, took place on 25 May at The Centre for Folklore, Todmorden, with 49 participanls. The event was funded by a generous donation of £500 from The University of Hertfordshire, plus £500 each from The Elphinstone Institute and The Folklore Society (according to our match-funding agreement= similady. the society co-sponsored the FEECA conference 'Connection. Creativity. Community., at The Elphinstone Institute in July 20231. The conference 'Saints and Mystics in Legend and Tradition: The seventeenth legendary weekend,. was held at St Albans Cathedral Chapter House from 2-3 September. with 43 participants in person. These weekends are for both specialists and non-specialists in folklore and focus on a particular topic in a place outside of London. The conference 'Amazonia= Differing Research Perspectives in Ethnology and Folklore,, the seventh annual 'Anthropology and Folklore in Conversation. joint symposium of the society with The Royal Anthropological Institute was held at 50 Fitzroy Street, London. and on-line, on 26 October 2023. attended by 36 participants in person and many more on-line. THE FOLKLORE SOCIETY TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The society co-hosted a free. one-day symposium on 'Fertility. Folklore and the Reproductive Body,, at 50 Fitzroy Street and on-line. The conference was a collaboration be￿een The Folklore Society and the Open University's 'Reproductive Bodylore, project (supported by AHRC Grant Number AH/S07158717). 12 people attended the symposium in person, and 128 on-line. Open-oxford-cambridge Doctoral Training Partnerships announced a new, AHRC-DTP Collaborative Doctoral Award at The Open University, in partnership with The Folklore Society: 'Healthy Folk: The role of vernacular knowledge in health-related decision-making,. a fully-funded PhD to begin in 2024. The regular on-line talks begun during the pandemic proved so popular that we have continued to hold them. These talks are given by experts on a wide range of folklore topics. Speakers in 2023 were: Prof. Stuart Dunn. on 'Corpse Roads and the Right to Roam.; Tibor Falzett, on 'The Midwfe Effie Currie Sophia Kingshill, on 'Bog Bodies Dr Petr Janecek on 'Spring-heeled Jack on the Continent Prof. Margaret Bennett 'There wis a lady dressed in green, on Scottish children's songs" Mark Lewis, 'Lighthouses and the Paranormal,; Prof. Terry Gunnell, on 'Nordic Legends of the Wild Ride." Dr Tommy Kuusela, 'Scandinavian Werewolves." Eric Huang, 'Saint Sebastian the Queer Icon,; Joel Conn, on 'Freemen of the Land.; Simon Young, on "The Wandering Jew" in Britain,: Dr Helen Frisby. on 'A History of Burial Grounds,: Prof. Ronald Hutton. on 'The History of Halloween Robert McDowall, on 'Archival Challenges of Collections,; Rosalind Kerven, on 'Old Faery Narratives," Dr Ronald L. James, on 'The Folklore of the Wild West Dr Francis Young, 'On Ihe Origins of British Fairies,; George Monger, on 'Ribbons, Flowers and Locks-contemporary practices." Dr David Waldron, on 'Ghosts of the Goldfields,. These on-line talks were very well attended, both by the general public and society members (who benefit from discounted tickets) and attracted a diverse audience nationally and intemationally (including participants from Europe, India. South Africa. Canada. USA). increasing the ac￿ssIbl11ty of the Society's programme of activities to participants who would struggle to attend an in-person Society event. We have a full programme of on-line bi- monlhly talks for 2024 and speakers are now being invited for 2025. The society devoted more resources to increasing its social media activity and expanded the digital reSoUr￿S available at https-1lfolklore-society.com. Folklore Society members benefit from a dedicated Members Only area of the website https.'Ilfolklore-society.com where they can access- the entire digital archive of back issues of Folklore and its earlier titles from 1878 onwards via tandfonline.com, selected folklore joumals from JStor.org, and the digital fomi of all back issues of FLS News. Library and Archives.. 167 books and pamphlets were added to The Folklore Society Library collections at University College London Library in 2023. 96 of these items were bequeathed by late Jean Tsushima,. this bequest, valued at £5.750, included 109 titles already held in our collection,. 40 duplicates were donated to The Folklore Library and Archive, Crediton, and 69 were donated to the Centre for Folklore, Myth and Magic, Todmorden. A membership survey was conducted between August and De￿mber 2023. and analysis of the resulting data is ongoing. The findings will assist the Trustees in ensuring the Society's continued relevance and appeal to members, and will inform the Society's strategic direction and sustainability. The society s journal Folklore. published in 4 issues per annual volume by Taylor and Francis, continued to perfonn well: Ihe joumal was accessed by over 3,100 institutions worfdwide., has a Cilations (Impact Factor) score of 0.4 and a Scopus score of 0.6" there were over 180,000 downloads of articles from the journal in 2023 (including 122,447 via Jstor., 57.244 via Tandfonline.com- 6 articles in the 2023 volume of Folklore were published as Open Access and free to all, encouraging wider public access to the fruits of folklore research, in keeping with the society's charitable aim. Folklore is also listed by ERIH PLUS {European Referen￿ Index for Humanities & Social Sciences) and by ANVUR (ltslian National Agency for the Evaluation of University & Research Institutes IAgenzia Nazionale di Valutazione del Sislema Universitario e della RicerGa). THE FOLKLORE SOCIETY TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Financial review Review of financial position The results for the year are set out on pages 10 & 11. Total income for the year amounted to £87,217 (2022: £122,155)" the difference between 2022 and 2023 is largely accounted for by the Katharine Briggs Trust donation in the previous year. Total expenditure amounted to £67.25312022.' £61,336). The broader picture is a little better than last year, largely due to modest increases in income from Taylor and Francis and JSTOR. The increased fixed costs associated with the move to the Royal Anthropological Institute required the Society re-evaluate its income-generating activities. on the one hand, and its costs. on the other, particularly those associated with administration and meetings. This is an ongoing process. The inhibition of our activities Gaused by the restrictions resulting from the Covid-19 pandemic was both a restraint and an opportunity in this respect.. net income from all on-line activities in Folklore Enterprises Limited (the trading subsidiary) in the year, after Eventbrite fees and VAT have been paid. was £4,752 (2022.. £3,289). We are able to report thal for 2023, allowing for the increase in the charity's office costs since leaving the Warburg Institute in 2019, there was net income of £19,964 achieved before recognising the movement in carrying value of the charity's current asset investment fund. compared to a net income in the previous year of £61,003. The prior year included £5,750 of donated heritage assets, along with the residual funds transferred on cessation of The Katharine Briggs Trust amounting to £45,482. For Ihe 2023 financial reporting year, which represented a modest improvement on the preceding two years, we anticipate.. continuing modest income from on-line activities,. some continued saving in expenses payments arising from holding on-line meetings,. and continued uncertainty arising from the increasing importance of open-access publishing within the Taylor and Francis income stream (see below). After non-cash items (being revaluations on intangible and heritage assets). there was a net decrease in charity funds for the year of £5,612, meaning that the carried forward reserves position as at 31 December 2023 amounted to £949,023 (2022: £954,635). Folklore Enterprises Limited The principal source of income of the Society and its trading subsidiary (Folklore Enterprises Limited) continues to be provided by the Folklore journal publishing arrangement with Taylor and Francis, a Irading arm of Infomia UK Ltd. This company is a wholly owned subsidiary of Informa plc, a company whose shares are quoted on the London Intemational Stock Exchange. The Society's previous joint venture profit share agreement with Taylor and Francis expired on 31 December 2016 and was replaced from 1 January 2017 by a royalty-based agreement for ten years. This agreement is a fixed royalty based on foty (40) percent of net sales receipts as defined, with a guaranteed nonreturnable advance each year of £30.000 and an annual contribution towards editorial expenses of £16.080, plus a variable additional payment at end of year for extra editorial work on Open Access articles. The current agreement offers the Society some protection from the vagaries of prevailing market conditions. Payments under the agreement are made to the Society's trading subsidiary, Folklore Enterprises Limited, and the surplus profits are paid up to the Society by way of a gift aided donation. However, the increasing move to open-access publishing in academic journal publishing is an issue: the impact of this, one way or the other, on the Society's income is not yet clear (not even to Taylor and Francis). This uncertainty is further undedined by the looming need to renegotiate the publishing agreement with Taylor & Francis. The royalty payment from Taylor and Francis to Folklore Enterprises Limited in respect of 2023 was £55,251, a small increase of £2,797 on 2022 (£7,368). The other principal source of cash income is the revenue paid to the Folklore Enterprises Limited by JSTOR. For 2023, Folklore Enterprises Limited received a royalty of USD $15,452 {£13,055), another modesl increase12022'. £12,206). The surplus profits of Folklore Enterprises Limited are paid up to the Society by way of a gift aided donation. In 2023 £72,000 was paid, and therefore donaled, to the Society (2022: £64.4361. THE FOLKLORE SOCIETY TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Reserves policy For a number of years now the financial strategy has been to maintain a day to day financial reserve (equivalent to net current assets} sufficient to meet roughly years of running costs {covering employment costs of the Librarian and her assistant plus a license fee for Offi￿ accommodation and other costs} in order to provide ample time for restructure should there be dramatic reductions in the income line in any future period. Based on the previous two years costs this would be equivalent to approximately £127,000. The net current assets position of £240.772 at 31 December 2023 was more than adequate to satisfy that strategy. At 31 December 2023 there was a balance of £30,596 (stated at its current market value) in the COIF Charities Investment Fund with cash or near cash balan￿S amounting to £216,227. Although this has been interrupted by the pandemic, periodic meetings take place with Society's Fund Managers to review performance of the investments and if felt appropriate to effect thanges in direclion. At 31 December 2023 the Society had unrestricted funds of £949.023 (2022: £954.635). of which £240.772 was general unrestricted funds available for day-to-day use (2022- £215,233). There were no restricted funds as at 31 December 2023. Risk management In addition to accommodation costs, and the unpredictable fluctuations in royalty payments from Taylor and Francis, which the Trustees are managing with pruden￿. the Charity's other risks may be categorised into financial dependency, stewardship and staffing. So far as financial dependency is concemed, there is the Societys obvious link to the financial good health of Taylor and Francis. In this regard, the financial performance of the parent Infomia group presents no cause for concern at the moment. The Trustees sought to manage risk and future uncertainty in the Society's commercial arrangements with Taylor and Francis by concluding the ten-year agreement based on a royalty model with a minimum royalty payment that came into effect from 1 January 2017. The issues that this strategy is now raising lin respect of open aC￿sS publishing etc.) have already been discussed. In common with many charities the Society is heavily dependent upon being able to identify and then secure a stream of prospective Trustees and officers who will take a lead in preserving the Society together with its aims and objectives for future generations. This risk is being addressed by changes to govemance which facilitate changes in the main officer group so that succession plans are in place for the next three- to five-year period at any point in time. This initiative is linked to a more general one of openly inviting participation by new and younger members to the Society by a natural process to fill all the key roles. With respect to staffing. the Trustees keep the matter under review. Due to retirement plans, for example, it is likely that the next eighteen months will see some tumover and renewal in this respect. This will be an opportunity for reflection upon the Society's needs in temis of staffing. Plans for the future The Society continues to develop its programme of increasing and widening its personal membership and outreach, particularly amongst younger people and those who pursue the study of folklore both academically and for personal interesl. It is also working to increase its collaboration wilh cognate societies and received support from other societies at its own events, or contributed to the support of events of similar societies. THE FOLKLORE SOCIETY TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Governance and management The Society is a company limited by guarantee, founded in 1878 and incorporated in the UK under England and Wales (registration number 03685496) and has been granted charitable status {registration number 1074552}. The officers of the Society (President, Vice-President. Treasurer, SeGretary and Participation Officer) are directors of the company and trustees of the charity. The offi￿rS act as the Management Board and have equal responsibility for the legally mandated affairs of the Society. including annual returns to Companies House and the Charily Commission. Officers also deal with on-going financial matters, staff, accommodation, links with Taylor and Francis who publish Folklore. and whatever other issues arise. The Society has aGGountants and solicitors to provide professional ServI￿S as appropriate. The Council of the Society, of which the officers are part, is responsible for non-mandated matters, such as the academic-related activities, including organising and participating in conferences and other evenls, acting as judges for various annual awards, and as members of ad-hoc working groups. Trustees of the charity The Trustees, who are also the directors for the purpose of company law. and who served during the year and up to the date of signature of the financial statements were.. Prof O Davies Dr H Frisby Prof D Hopkin (appointed 16 June 2023) Prof R P Jenkins Ms S Kingshill Prof P Lysaght (retired 16 June 2023) Appointment of trustees The trustees of The Folklore Society are proposed by the Management Board, which consists of the Trustees and the Editor of Folklore, on the basis of any nominations received and seconded in accordance with the articles and memorandum of association. They are elected by votes on a show of hands at the Annual General Meeling. Proxy votes are cast in accordance with instructions from those absent but entitled to attend, by the President of the Society, who is always a Trustee of the Society. They are elected to serve a tem of three years. The directors of Folklore Enterprises Limited, the wholly owned subsidiary of The Folklore Society, are elected at the meeting of the directors of The Folklore Society- They represent the commercial interests of the Society in its trading subsidiary and comprise the Secretary and Treasurer of The Folklore Society. Pay policy for key management personnel The trustees consider the trustees and the senior management team to comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis. The key management individual who is involved in all decision-making and responsible for- the day-to-day management of the charity is Dr C Oates, the Senior Librarian and administrative manager. All trustees give of their time freely and no trustee received remuneration in the year. The pay of the senior staff is reviewed annually and normally increased in accordance with market rates. Small company provisions This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006. THE FOLKLORE SOCIETY TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees. report was approved by the Board of Trustees. Professor R P Jenkins Trustee Dated.. 2 September 2024 THE FOLKLORE SOCIETY STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees, who are also the directors of The Folklore Society for the purpose of company law, are responsible for preparing the Trustees, Report and the financial statements in accordan￿ with applicable law and United Kingdom Accounting Standards {United Kingdom Generally Accepted Accounting Practice)- Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Society and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements. the Trustees are required to.. select suitsble accounting policies and then apply them consistently- - observe the methods and principles in the Charities SORP. make judgements and estimates that are reasonable and prudent: and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the Society will continue in operation. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Society and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Society and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## **THE FOLKLORE SOCIETY** ## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE FOLKLORE SOCIETY** I report to the Trustees on my examination of the financial statements of The Folklore Society (the Society) for the year ended 31 December 2023. ## **Responsibilities and basis of report** As the Trustees of the Society (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act). Having satisfied myself that the financial statements of the Society are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Society’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - 1 accounting records were not kept in respect of the Society as required by section 386 of the 2006 Act; or - 2 the financial statements do not accord with those records; or - 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or - 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. ## **Sarah Jennings FCA Azets Audit Services** Globe House Eclipse Park Sittingbourne Road Maidstone Kent ME14 3EN United Kingdom Dated: 3 September 2024 - 9 - THE FOLKLORE SOCIETY STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestricted Restricted funds funds 2023 2023 Total Total 2023 2022 Notes Income from: Donations Other trading activities Investments 73.522 4.802 8.893 73,522 4,802 8,893 118,226 1,459 2,470 Total income 87,217 87,217 122,155 enditure on: Charitable activities Other 64,253 3.000 64,253 3,000 61,152 184 11 Total expenditure 67.253 67,253 61,336 Net gainslllosses} on investments 13 2.575 2,575 (4,029) other ￿cognised gains and losses Other gains or losses (28.1511 128,151) (26,148) Net movement in funds (5.612) 15,612) 30,642 Fund balances at 1 January 2023 954.635 954,635 923,993 Fund balances at 31 December 2023 949,023 949,023 954,635 The ststement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 10- THE FOLKLORE SOCIETY BALANCE SHEET AS A T 31 DECEMBER 2023 2023 2022 Notes Fixed assets Intangible assets Heritage assets Investments 14 15 16 121,282 586,959 10 149,433 589,959 10 708,251 739,402 Current assets Debtors Investments Cash at bank and in hand 17 18 923 30,596 216,227 833 28,021 192,825 247.746 221,679 Creditors: amounts falling due within one year 19 (6,974) (6,446) Net current assets 240,772 215,233 Total assets less current liabilities 949,023 954,635 Income funds Unrestricted funds Designated funds General unrestricted funds 21 708.251 240,772 739,402 215,233 949,023 954,635 949,023 954,635 11 THE FOLKLORE SOCIETY BALANCE SHEET (CONTINUED) AS A T 31 DECEMBER 2023 The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2023. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial ststements. The members have not required the company to obtain an audit of its financial ststements for the year in question in accord8nGe with seclion 476. These financial statements have been prepared in accordan￿ with the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the Trustees on 2nd September 2024 Professor R P Jenkins Trustee Company Registration No. 03685496 12 THE FOLKLORE SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies Charity information The Folklore Society is a private company limited by guarantee incorporated in England and Wales and a registered charity with the Charity Commission in the United Kingdom. The registered office is Globe House, Eclipse Park, Sittingbourne Road, Maidstone, Kent, ME14 3EN. The principal place of business is 50 Filzroy Street, London W1 T 5BT. The nature of the charity's operations and prinGipal artivities are detailed in page 1 of these financial statements. 1.1 Accounting convention The financial statements have been prepared in accordan￿ with the Society's governing document. the Companies Act 2006 and "Accounting and Reporting by Charities.. 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 (FRS 102) {effective 1 January 2019)" The Society is a PubliG Benefit Entity as defined by FRS 102. The Society has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows. The financial statements are prepared in sterfing, whiGh is the functional currency of the Society. Moneiary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, modified to include certain financial items at fair value. The principal accounting policies adopted are set out below. The charity has availed itself of Paragraph 4(1) of Schedule 1 of the Small Companies and Groups (Accounts and Directors, Reports) Regulations 2008 and adapted the fomiat to reflect the special nature of the charity's activities. 1.2 Going concern The financial ststements have been prepared on a going concem basis as the trustees believe that no malerial uncertainties exist. In reaching that view, the trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from approving these financial statements. Their belief is that the anticipated income and expenditure for that period will be adequate for the charity to be able to continue as a going concem, given its level of reserves at 31 December 2023 and the fact that they currently still believe and expect that the charity's trading subsidiary will also continue operating as a going concern for the foreseeable future. 1.3 Charitable funds The Income Fund consists of unrestricted funds. Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements. 1.4 Income Income is recognised when the SoGiety is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably. and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised On￿ the Society has been notified of the donation. unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation. 13- THE FOLKLORE SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies (Continued) Legacies are recognised on receipt or otherwise if the Society has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known. the legacy is treated as a contingent asset. Income from ancillary trading activities (Conferen￿ fees and royalty and book sales) is recognised when the Charity is legally entitled to it, being the occurrence of the event or the sale of the book. 1.5 Expenditure All expenditure is accounted for on an accruals basis, is inclusive of VAT where incurred, and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. 1.6 Intangible fixed assets other than goodwill Intangible fixed assets relate to the licences of the copyright of the joumal Folklore to Taylor & Francis PIC and JSTOR under the terms of the respective joumal publishing and royalty agreements. The assets have been valued by the trustees at the present value of projected future cash flows over the minimum expected remaining life of the underlying agreements. The trustees, follow a capitalisation policy to treat such items with a cost in excess of £250 as capital in nature. 1.7 Fixed asset investments Fixed and current asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net incomel(expenditure) for the year. Transaction costs are expensed as incurred. A subsidiary is an entity controlled by the Society- Control is the power to govem the financial and operating policies of the entity so as to obtain benefits from its activities. 1.8 Impairment of fixed assets At each reporting end date. the Society reviews the carying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impainnent loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the exlent of the impaimient loss (if any). 1.9 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less. 1.10 Financial instruments The Society has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Socievs balan￿ sheet when the Society becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 14- THE FOLKLORE SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies (Continued) Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaclion costs and are subsequently carried at amortised Gost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities. including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not. they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amorb'sed cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the Society's contractual obligations expire or are discharged or cancelled. 1.11 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 1.12 Foreign exchange Assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling al the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All exchange differences are taken to the Statement of Financial Activities. 15- THE FOLKLORE SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Critical accounting estimates and judgements Accounting estimates and judgements are continually evaluated and are based on historical experien￿ and other factors, including expectakn'ons of future events that are believed to be reasonable under the circumstances. The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements.. Intangible assets Intangible fixed assets relate to the liCen￿S of the copyright of the joumal Folklore to Taylor & Francis PIC and JSTOR under the lerms of the respective joumal publishing and royalty agreements. The assets have been valued by the trustees at the present value of projected future cash flows over the minimum expected remaining life of the undedying agreements. Heritage assets carried at valuation The useful economic lives and residual values of heritage are reassessed annually for any impairment. They are amended when ne￿SSary lo reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of the charity's library, paintings, artefacts and archives. There are no undisclosed key assumptions con￿MIng the future or other key SoUr￿S of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Donations Unrestricted funds Total 2023 2022 Donations and gifts Internship grant Donated heritage assets 73,522 111,216 1,260 5,750 73,522 118,226 Donations and gifts includes £72,000 {2022.' £64,436) of trading surplus paid to the charity in the year. This includes £38,604 {2022'. £37,270) unpaid from the year ended 31 December 2022. The internship grant received in 2022 was restricted income. All other income in the curernt and prior year was unrestricted. No legacy income was notified to the trustees during the year under review. 16- THE FOLKLORE SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Other trading activities Unrestricted Unrestricted funds funds 2023 2022 Conference fees Royalties and book sales 4,753 49 1,284 175 Other trading activities 4,802 1,459 Investments Unrestricted Unrestricted funds funds 2023 2022 Other investment income 8,893 2,470 17- THE FOLKLORE SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Charitable activities Total funds Total funds 2023 2022 Staff costs Depreciation and impaimient FLS news Conference speakers. travel bursaries 1,260 90 2,202 911 3,121 3,733 6,854 4,463 Grant funding of activities {see note 7) 1,150 2,320 Share of support costs (see note 8) Share of governance costs (see note 8) 49,319 6,930 48,729 5,640 64,253 61,152 Analysis by fund Unreslricted funds Restricted funds 64,253 59,892 1,260 Charitable activities include holding various conferences throughout the year to foster and further research into folklore, and publishing a regular joumal (FLS news) to the members of the Society. All support and governance costs are charitable activities. Grants payable Unrestricted Unrestricted funds funds 2023 2022 Grants to institutions- Open Book Publishing 1,230 Grants to individuals (1 grants) 1,150 1,090 1,150 2.320 18- THE FOLKLORE SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Support and govemance costs (all unrestricted funds) Support Governance costs costs 2023Support costs Govemance costs 2022 Staff costs Licence fee - occupation of office Postsge, stationery and telephone Sundry expenses Bank charges Insurance Computer running costs Subscriptions Officers, travel and subsistence Marketing & Publicity 34,391 34,391 33,690 33,690 10,445 10,445 9,792 9,792 983 518 103 1,039 16 983 518 103 1,039 16 512 185 83 962 208 108 512 185 83 962 208 108 762 978 762 978 3,189 3,189 Accountancy Independent examinerfs fee 2,880 2.880 1,890 1,890 4.050 4,050 3,750 3,750 49,319 6,930 56,249 48,729 5,640 54,369 All relate to Charitable activities 49,319 6,930 56,249 48,729 5,640 54,369 Total staff Gosls for the year amounted to £34,391 (2022: £34,950) - see note 10. Trustees None of the Trustees {or any persons connected with them) received any remuneration or benefits from the Society during the year. Included in offi￿rS, travel and Subsisten￿ is a total of £130 (2022: £771) reimbursed to the 5 trustees during the year. 19- THE FOLKLORE SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 10 Employees Number of employees 2023 Number 2022 Number Administration Employment costs 2023 2022 Wages and salaries Other pension costs 34,369 22 34,867 83 34,391 34,950 The trustees consider that they, together with the charity's Senior Librarian, comprise the key management personnel of the charity who are jointly in charge of directing and controlling. running and operating the charity on a day to day basis. The Senior Librarian's salary cost was £25,114 (2022: £24,616). There are no employees with emoluments above £60,000 (2022: Nil). 11 Other Unrestricted Unrestricted funds funds 2023 2022 Net loss on disposal of tangible fixed assets Net loss on disposal of heritage assets 184 3,000 12 Taxation The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. 13 Net {losses}Igains on investments Unrestricted Unrestricted funds funds 2023 2022 Revaluation of investments 2,575 (4.029) -20- THE FOLKLORE SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 14 Intangible fixed assets Publishing licences Valuation At 1 January 2023 Impairment 149,433 (28,1511 At 31 December 2023 121,282 Amortisation and impaimient At 1 January 2023 and 31 December 2023 Carrying amount At 31 December 2023 121,282 At 31 December 2022 149,433 Inlangible fixed assets relate to the licences of the copyright of the joumal Folklore to Taylor & Francis PIC and JSTOR under the terms of the respective joumal publishing and royalty agreements. The assets have been valued by the trustees at the present value of projected future cash flows over the minimum expected remaining life of the undertying agreements. 15 Heritage assets At valuation At 1 January 2023 Disposals 589,959 (3.000) At 31 December 2023 586,959 The Trustees assess the fair value of the heritage assets on an annual basis. The paintings and artefacts were last fomially valued during the year ended 31 December 1997, with the archives last formally valued in the year ended 31 December 2015. The most recent fomial valuation of the Library was undertaken by Mr M Banwell in May 2022 to value the books donated to that date and for insurance purposes. Mr M Banwell also valued the addition of 205 titles to the Library in the prior year. Mr M Banwell is a specialist in Folklore material. The charity also owns the Mary Young Collection and the Cambridge Anthropology Collection, these items have not yet been professionally valued and are not included in these accounts. 21 THE FOLKLORE SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 16 Fixed asset investments Other investments Cost At 1 January 2023 & 31 December 2023 10 Carrying amount At 31 December 2023 10 At 31 December 2022 10 2023 2022 Other investments comprise.. Investments in subsidiaries 24 10 10 17 Debtors 2023 2022 Amounts falling due within one year: Prepayments and accrued income 923 833 18 Current asset investments 2023 2022 COIF Charities Investment Fund 30,596 28,021 19 Creditors: amounts falling due within one year 2023 2022 Other creditors Accruals and deferred income 2,474 4,500 898 5,548 6,974 6,446 -22- THE FOLKLORE SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 20 Restricted funds The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes- Movement in funds Income Expenditure Movement in funds Income Expenditure Balance at 1 January 2022 Balance at 1 January 2023 Balance at 31 December 2023 Internship 1,260 (1,260) 21 Designated funds The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes: Balance at New Designation Revaluations. Balance at Designation Balance at 1 January 2022 designation released gains and1 January 2023 released 31 December losses 2023 Copyright li￿nce fund Fixed assets fund Heritage assets fund Investments fund 175.581 (26,148) 149,433 (28,151) 121.282 274 (274) 584,209 5,750 589,959 (3,000) 586,959 10 10 10 760.074 5,750 (274) {26,148) 739,402 (31,151) 708,251 Copyright licence fund this fund holds the licences and copyright of the joumal Folklore to Taylor & Francis PIC and JSTOR under the tems of the respective joumal publishing and royalty agreements. Fixed asset fund this fund holds the various tangible assets of the Charity. They are not held to generate income, but utilised in the performance of the charity's activities. Heritage asset fund - this fund holds the heritage assets of the Charity. They are not held to generate income. but to maintain and preserve the archives and manuscript collections. Investment fund - this fund holds the trading subsidiary, and is invested to maximise total return and generate income. -23- THE FOLKLORE SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 22 Operating lease commitments At the reporting end date the Society had outstanding commitments for future minimum lease payments under non-cancellable operating leases. which fall due as follows- 2023 2022 Within one year Be￿een two and five years In over five years 11,070 44,280 5,535 10,000 40,000 5,833 60,885 55,833 At 31 December 2023 the charity had an operating lease commitment with The Royal Anthropological Institute under the terms of a licen￿ agreement to occupy Spa￿ at 50 Fitzroy Street, London, W1. The total commitment covers the remaining period of occupancy by the Charity expected to end on 27 July 2029. The amount of the rent paid under this agreement in the year to 31 December 2023 was £10.445 (2022: £9,792) which included a 500/. discount in January 2023 and a 330A discount from 1 February 2023 to 31 December 2023. 23 Related party transactions The Charity's wholly owned trading subsidiary, Folklore Enterprises Limited, conducts the commercial activities of its parent charity and donates under gift aid any trading surplus to the parent charity each financial year. For the year ended 31 December 2023 the amount donated was £72.000 (2022: £64.4361. At 31 December 2023 there were no balances outstanding beiween the charity and Folklore Enlerprises Limited. -24- THE FOLKLORE SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 24 Subsidiaries These financial statements are separate Society financial statements for The Folklore Society. The Society is a parent company subject to the small companies, regime. The Society and its subsidiary comprise a small group and the Society has taken advantage of the exemption provided by the Statement of Recommended Practice 'Accounting and Reporting Charities, nol to prepare group accounts. As a result, these accounts give information about the company as an individual undertaking and not about the group. Details of the Society's subsidiaries at 31 December 2023 are as follows.. Name of undertaking Registered office Nature of business Class of shares held °/0 Held Direct Indirect Folklore Enterprises Limited England & Wales Not for profit publishing and Ordinary library activites 100.00 The aggregate capital and rese￿eS and the result for the year of subsidiaries excluded from consolidation was as follows.. Name of undertaking ProfiU(Loss) Capital and Reserves Folklore Enterprises Limited (1.506) 38,198 -25-