|||||Booker Prize Foundation|Booker Prize Foundation|Booker Prize Foundation|Booker Prize Foundation|Booker Prize Foundation|||| |---|---|---|---|---|---|---|---|---|---|---|---| |||||Trustees Annual||Report|||||| |||||For the year ended 31||December 2021|||||| |The Trustees present their report and the financial
statements
for the|||||||year ended 31"December 2021.These||||have been| |prepared|in accordance||with the Charities Statement ofRecommended|||||Pracfice|(FRS102)issued on 22 May 2014,current||| |legislation||and the arlides and||memorandum
ofassociation. The Trustees have taken advantage||||||ofthe simpliTied|disclosures| |available|to smaller companies|||through
Part 15ofthe Companies||Act|2006, including
exemption|||from preparing|a Strategic| |Report.|||||||||||| |Name||||Booker Prize Foundation|||||||| |Company||Registration|||||||||| |Number||||04213467 (company
limited
by|guarantee)||||||| |Registered||Charity|||||||||| |Number||||1090049|||||||| |Trustees||||The Trustees
(who are the company|||law directors) throughout|||the year and up|to the| |||||date ofsigning
this report were:|||||||| |||||Mark Damazer CBE|||||||| |||||Anthony
Darner
ACA (treasurer,|||appointed||8 July 2021)||| |||||Nicholas Barley|||||||| |||||Carol Lake OBE|||||||| |||||Bidishs SKMamata
(retired|2 March 2022)||||||| |||||Alexander James Naughtie|(retired|||11 February 2021)|||| |||||Ben Okri OBE|||||||| |||||Mary Teresa Rainey OBE|||||||| |||||Professor Dame Louise Richardson|||||||| |||||Katherine
Nicole Sheard|||||||| |||||The Rt Hon Lord David Wigetts|||||||| |Company||Secretary||Evelyn Smith|||||||| |Registered||Office||First Floor, 10Queen Street Place|||||||| |||||London EC4R 1BE|||||||| |Auditom||||Moore Kingston
Smith LLP|||||||| |||||9Appold Street|||||||| |||||London EC2A 2AP|||||||| |Bankem||||HSBC|||||||| |||||The Peak, 333Vsuxhag
Bridge|Road||||||| |||||Virfioria, London SW1V1EJ|||||||| |Solicitors||||Bates Wells 6Braithwaite
LLP|||||||| |||||10Queen Street Place|||||||| |||||London EC4R 1B|||||||| ## ## ## ## ## ## ## ## ## ## |The Trustees|have reviewed|have reviewed|have reviewed||the risks|the risks|to|which the Foundation
and its trading
subsidiary
are exposed, assessed|which the Foundation
and its trading
subsidiary
are exposed, assessed|which the Foundation
and its trading
subsidiary
are exposed, assessed|| |---|---|---|---|---|---|---|---|---|---|---|---| |their likely impact||and|where||appropnate|||have established||systems,
procedures
or insurance
to mitigate these|| |risks, these are outlined|||in accordance||||with||the Foundation's|consideration
of risk throughout
2021.|| |Key Risks||||||||||Management|| |Lack ofdirection||and strategy||||||||Starling
vrith a dedicated
strategy
meeting
in October|| |||||||||||2010, the Trustees sre developing
stmtegic objecbvss|in| |||||||||||key areas. Most notably digital skelegy has been s priorily;|| |||||||||||and 2021 ssw the development
end initial implementation|| |||||||||||ofa new strategy
aimed at ensuring
that BPF,and motri|of| |||||||||||sll the
books
asaotfiateri
with
Ihe Booker prizes,
are|| |||||||||||celebrated across the widest networks|| |Dependency|on|key personnel||||/professional|||senrice|Responsibilities
ofthe Director
and key consultants
are|| |pmviders||||||||||set out in contracts with collegiate executive
working|| |||||||||||anal/ling
knowledge/networks
to be shared
and/or|| |||||||||||understood
although
personal contads and experience|| |||||||||||are essential; the significant
resources available
via Four|| |||||||||||Culture for administration
&operations
are an advantage|| |||||||||||ich would
not necessarily
be available
to BPF/BPTL|| |||||||||||(or might cost more) if it took direct responsibility
for|| |||||||||||these but there is recognition
by ag concerned|| |||||||||||(BPF/BPTLJFour Culture) that mview ofthe|| |||||||||||almngements
is needed (post year end note, this review|| |||||||||||ia underWay
in 2022)|| |Exdusive Crankstarl
Foundation||||||funding||(risks associated||Crankstari
is a strong financial covenant - independent|| |both with model||offunding||and||identity|of funder)|||due diligence wss undertaken
by Krog for BPF/BPTL|| |||||||||||prior to entering
into 2019core funding
agreements
on|| |||||||||||ich independent
legal advisee was also taken; the|| |||||||||||Secretary is aware ofkey provisions
&briefs and liaises|| |||||||||||with others to ensure compliance;
there is awareness
of|| |||||||||||impact ofcapped annual
funding
fi VAT on budgets;
the|| |||||||||||board &Ihe executive are responsible
forensuring
there
's independent
decision making
(this acknowledged
in|| |||||||||||funding
agreement);
insurance
in place to indude
Norih|| |||||||||||American
claims (Crankstart
ls a (/S entity); in extreme|| |||||||||||'rcumstsnces
BPF/BPTL may tenninate
funding|| |||||||||||agreement
ifCrankstsrt
bnngs BPFor prizes into|| |||||||||||disrepute
and BPFhas a significant
reserve (equivalent|| ## |Key Risks|Key Risks|||||||fifienagssumt|| |---|---|---|---|---|---|---|---|---|---| |||||||||to one year funding
at current level)|| |||||||||The additional
funding
for online digital development|from| |||||||||the same source, Crsnkstart,
underlines
this dependency|| |||||||||on a single source, but the new digital strategy|| |||||||||contemplates
partnerships
with other third parties.|| |Scale and||ambition
ofdigital||iniliative,||including|expansion|Recognition
ofthe need for organisationsl
development|| |of payroll||and anticipated||transformation
of|||the scale of|and growth needed to underpin
the digital initiative.|| |the Foundation's
operations||||||||Ongoing engagement
ofthe executive
and board to seek|| |||||||||to ensure, the challenges
and scale oforganisational|| |||||||||development/underpinning
keeps up with the pace of|| |||||||||online/digital
activity.|| |Judges|&judging —various|||risks associated
with:|||||| |a) diversity||(or lack) ofpanel||||||a) recent (past 5years) panels have demonstrable|| |||||||||diversity
but need to maintain
this|| |b) failure|to follow rules|||||||b) lessons from 2019 Booker Pnze - emphasis
in rules|| |||||||||that judges must follow direction/guidance
as to process-|| |||||||||govemance
(board) responsibility
to underpin
this|| |c) harm|caused by association||||with judges views &|||c)ongoing care &attention
to choose ofjudges and their|| |activities|not related to judging||||process|||profile|| |d) exposure ofjudges to criticism and||||||campaigns||d) current dose liaison with judges
by Literary Director/|| |(particularly||via social media)||||||International
Administrator
is key|| |||||||||Trustees aware ofthe need for particular
afiention to|the| |Ongoing|risks assooated||with||Covid|19pandemic||Going Concern status of BPF8 BPTLfor at least 12|| |||||||||months
from the date ofthe approval
ofthe finana el|| |||||||||statements.
Trustees satisfied
both BPF &BPTL will|be| |||||||||able to continue
in operational
existence for the|| |||||||||foreseeable
future. :|| |||||||||primary
income source is a gant funding|| |||||||||agreement
from a weg-resourced
US charitable|| |||||||||donor (Crankstart
Foundation)
at a committed|| |||||||||annual
level ofF1.5 million
in 2021 extended|to| |||||||||a 6year period expiring
in 2024 (as well as|| |||||||||additional
restnrded
grant funding
starting
in|| |||||||||2021ofK1.152 million for 3years - to 2024 —for|| |||||||||digital initiative.|| |||||||||at the balance sheet date BPFhad free reserves|| |||||||||ofE2,964,966(2020:E2,107,760);|| |||||||||BPFand BPTLhave demonstrated
the capadty|| |||||||||to arxivities
in response to the constraints
of|the| |||||||||pandemic|| |||||||||there are no onerous contractual
or other|| |||||||||financial
commitment;
in 2021 neither the BPF|| |||||||||nor BPTLhad any premises-related|| |||||||||commitments,
and the appointment
ofBPF's|| |||||||||first employee
in April 2021 has not affected|the| |||||||||BPF's ability to keep expenditure
within|| |||||||||appropriate
and prudent
planned,
budgeted,|and| |||||||||controlled
parameters.|| ## ## ## ## ## ## ||||||2021|2020| |---|---|---|---|---|---|---| ||||||E.|E| |Cash sows from operating|activities|||||| |Net cash provided
by / (ueed in) operating|||eciivieas|14|034,615|75,592| |Net cash provided
by operating||activities|||834,$15|75,592| |Cash Ilows fram Investing|activities|||||| |Interest received|||||029|2,410| |Net cash provided
by Investing||activities|||029|2,410| |Change
In cash and cash|equivalents||during tha year||835,244|TS,OOZ| |Cash snd cash equivalents|at beginning||ofyear||2,100,250|2,090,240| |Cash and cash equivalents|at end ofyear||||3,003,494|2.160,250| |Analysis ofcash and cash|equivalents|||||| ||||||2021|2020| ||||||E|E| |Cash at bank and in hand|||||703,494|1,568,250| |Deposits|||||2,300,000|600,000| |Total cash and cash equivalents|||||3,003,494|2,100,250| |Analysis ofchanges
In net|debt|||||| |||||014an-zt|Cash Flows|31-Dec-21| ||||||E|E| |Cash||||2,100,250|035,244|3,003,494| |Loans felling due mthin one|year|||||| |Loans falling due after more|then|one year||||| |Total||||2,160,250|035,244|3,003N84| ## ## |||||||2021f|2020
6| |---|---|---|---|---|---|---|---| ||Donation
Income|||||2,652,000|1,500,000| ||Turnover|||||2,652,000|1,500,000| ||Direct costs||||||| ||Gross profit|||||1,999,464|711,153| ||Administration
costs|||||(103,101)|(155,433)| ||Interest received|||||29|251| ||Interest payable||||||| ||Profit on ordinary|activities for the year|||||Iv
11| ||Shareholders'
fund|brought||forward||5,001|5,001| ||Profit for the financial year|||||1,896,392|555,971| ||Charitable
distribution||to parent undertaking|||(1,896,392)|(555,971)| ||Shareholders'
fund||carried|forward|||| ||The assets, liabilities||and funds ofthe subsidiary||were:||| ||Assets|||||1 788642|348194| ||Liabilities||||||| ||Capital and reserves||||||| |4|Interest receivable|and similar income|||||| |||||||2021|2020| |||||||f|6| ||Interest
on bank deposits|||||629|2,410| ||||'|asm~
Dorrrmorrs
'I~T)|Bom|~)4o)||| |---|---|---|---|---|---|---|---|---| ||||||4|2|z|4| |MIFNdkum
an ofmrimbm||smloNMO||||||| |Booker prize
Ihternatiorlsl
Booker|Prize||205,355
238,090||195,NO
128,400|107300
86,313|NO,N0
N1,040|754,77 I
400,813| |Olher chsrkable aclv0lez||||167.755|471,19'7|148,40O|Tzs,aeo|225 333| |Total Nzpondltsts
aetlv Nloa|on cnerllsbm||800,Nt|14'7,744|TN,107|0mkezt|1,7N,424|1,4Ta,mlo| |Total NzpendNum|Wm||9N,481|IdTTN|||1,784,424|1,470.020| |Total mlposdhuro|mimi||N7,207|IMVMT||071,417||| |Anal
ls ofBx|ndnuro 2020|ndnuro 2020|ndnuro 2020|||||| |---|---|---|---|---|---|---|---|---| |||||Lkerary mvsnto|Oonaaono
aml 0rants
(Nod Tl|Omv Olmm
Ccats|Bupport
oasis (0s)|| |||||8|2||0|| |Bapendzore on|charitable||amlvltlm|||||| |Booker prrzo||||380,903||204,000|100,811|754,774| |Internatrcnsl
Booker
9ooker inlerrsscnsl||Prize/
pnzs|man|238274||1%,lkm|124,939|~N,010| |Other vhariteble|octvzioo||||153,037|15629||| |Tofsl BkpondNore||en charNabls||SW,247|teNNT|358,22O|071,417|4,470,020| |~cNvNbm||||||||| |Toml
Dip
mr dltfr|m|mme||N7,297|Ieezmv|3NpSI|z71,417|1,470,O20| ## |6|Staffcosts|||||||||||||2021||2020|2020| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |||||||||||||||E|||E| ||Wages snd salaries|||||||||||||75,000|||| ||Social sscurity costs|||||||||||||5,435|||| ||Pension contributions|||||||||||||991|||| |||||||||||||||81,426|||| ||Staff Costs have been|agocsted to|||chariitable|||ac0vilies as||follows:|||||||| |||||||||||||||2021||2020|| |||||||||||||||E|||E| ||Charitable
activities||||||||||||||||| ||Supportcosts|||||||||||||81,426|||| |||||||||||||||81,426|||| ||Hig(BESgj~lfl||||||||||||||||| ||The number
of higher paid|||employees||who's emoluments||||exceeded|||E60,000were'||||| |||||||||||||||2021||2020|| ||670,000 -|E79,999|||||||||||||||| ||The pension
contributions
x'—
""""||payable||in respect ofthis individual|||||||amounted||to7991(2020:ENil)|||| |||||||||||||||2021||2020|| ||The average number of employees||||during||the|year wss:|||||||||| ||Key managemeni
personnel|||indude|the Trustees,||||Company||Secretary,|||the Literary|Director snd the||| ||Internalional
Booker Prize||Administrator.||||Amounts||remunerated|||to key management|||personnel|amo|un| ||tc2204,029(2020:2212,713).||||||||||||||||| ||No remuneration
wss paid|||to any|trustee for|||services as||a|trustee,||Ibis year or||last. One trustee||(| ||thme) was reimbursed|for|travel and subsistence||||||expenses||incurred||during the year totalling|||Et25 (|| ||E463) .||||||||||||||||| ||Donations|||||||||||||2021||2020|| |||||||||||||||6|||| ||Designer bookbinders|||||||||||||12,375|11,087||| ||English PEN|||||||||||||2,000||5,000|| ||International
PEN|||||||||||||2,500|||| ||Ubrarles Project|||||||||||||16,380|37,200||| ||National
Literacy Trust|||||||||||||50,000|50,MO||| ||National
Literacy Trust - Booker Squad|||||Project||||||||50,000|||| ||Royal National
Institute
University cfEast Anglie|of Blind People
(Scholarship)||||||||||||7,000
12,500|23,500
18,750||| ||Edinburgh
Book Festival|||||||||||||5,000||5,000|| ||Other Charitable
Ifestivals|||||||||||||||2,500|| |||||||||||||~157755|||ls||| ## ## |13|ReconcglaNan||eimevement|eimevement|In|funds
(conNnued)|funds
(conNnued)||||| |---|---|---|---|---|---|---|---|---|---|---|---| ||GQMPARATlvE||INFQRMATIDN:|||Reconaglstlon|al|mavamenl|ln lands tar year|ended 31December 2020|| ||Oraup|||||Balance bN||Income|Expsndltum|Transfers|Balanae clf| |||||||E||E|E||E| ||Unresnlcled|Funds|||||||||| ||Charitable
funds|||||2,077,270|1,502,410||(1,476,920)||2,162,700| ||Trading
funds|||||5,000|||||s,ooc| ||Total Unrastdcted|||Funds||2,0$2,270|I.dgzrdf 0||(1,476,020)||2,107,700| ||Total Funds|||||2.082,270|f402,410||(1478,020)||2,107760| ||Cbarliy||||||||||| |||||||Balance bn||fiicatrie|Expendllura|Transfers|Bslsnae cN| |||||||E||E|2|E|E| ||Unrestricted|Funds|||||||||| ||Charitable funds|||||2,077,270||619,129|(593,639)||2,102,780| ||Torsi unmstdcted|||Funds||2077270||810120|5 3830||2 102760| ||Tatal Funds||||||||||| |ReconcNlanon
of|net|Income I iexpendllum)
to net csun pm|vmed
byoperaang
amtimtes|| |---|---|---|---|---| ||||2021|2020| ||||E|| |Net iruome for the|year|||| |Adiustments
lun||||| |liilerest recelvzid|||(820)|(2,410)| |(Increase) IDecrease||in debtors|(17,181)|36,000| |(Decrease) Iincrease||in creditars|(4,780)|16,512| |Net cash provided|by I(used In) operating actlvales||834,81$||