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2021-03-31-accounts

DocuSign Envelope ID: C6E07469 ~~-~~ 85FA ~~-~~ 4088 ~~-~~ B553 ~~-~~ 05FC44469F0A

THE NATIONAL LITERACY TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

CONTENTS
Report of the Trustees 1
Report of the lndependent Auditor 11
Statement of financial activities 15
Balance sheet 16
Statement of cashflows 17
Notes to the accounts 18

DocuSign Envelope ID: C6E07469 ~~-~~ 85FA ~~-~~ 4088 ~~-~~ B553 ~~-~~ 05FC44469F0A

THE NATIONAL LITERACY TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the financial statements of the charity for the year ended 31 March 2021.

The financial statements comply with the Companies Act 2006, the trust deed 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).

REFERENCE AND ADMINISTRATIVE DETAILS

The Trustees and advisers currently in office or who served during the year were as follows:

TRUSTEES Julia Cleverdon DCVO CBE (Chairman) Frank Carter (until 10 February 2021) Louise Doughty (appointed 24 September 2020) Luisa Edwards Ben Fletcher Natasha McMullen Joanna Prior (until 10 February 2021) Liz Robinson Neil Sherlock CBE Lara White (Treasurer) Professor Clare Wood

PATRON Her Royal Highness the Duchess of Cornwall

PRESIDENT Baroness Prashar of Runnymede

VICE PRESIDENT Amanda Jordan OBE

REGISTERED OFFICE 68 South Lambeth Road, London SW8 1RL

CHARITY NUMBER SCOTTISH CHARITY NUMBER 1116260 SC042944 COMPANY NUMBER 05836486

AUDITOR RSM UK Audit LLP, Portland, 25 High Street, Crawley RH10 1BG

BANKERS

Lloyds TSB Bank Plc, Law Courts Branch, 222 Strand, London WC1R 2BB

WEBSITE www.literacytrust.org.uk

CHIEF EXECUTIVE Jonathan Douglas CBE

COMPANY SECRETARY Samantha Brookes

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THE NATIONAL LITERACY TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

The National Literacy Trust was established by Trust Deed dated 19 November 1992 and subsequently registered with the Charity Commission. The status of the Trust was changed with the registration of a new charity incorporated in England and Wales in June 2006 and re-registered with the Charity Commission.

These are the full accounts of the incorporated charity. The accounts comply with the Companies Act 2006. The National Literacy Trust is a registered charity (no. 1116260) and a company (no. 05836486) limited by guarantee up to a maximum of £1 each, per member.

ORGANISATION OF THE CHARITY

The Trustees meet four times per year and have full responsibility for all legal and financial matters. Any additions to the membership follow consideration and invitation by the Board of Trustees. The Trustees have delegated responsibility for the strategic and financial management of the charity to the Chief Executive. New Trustees receive a full induction, briefing them on the strategy, campaigns and projects and their responsibilities. The Board is supported by an Audit and Risk Committee that meets four times a year.

RISK ASSESSMENT

The Trustees are mindful of the need to identify and assess the major risks facing the charity. Appropriate procedures and systems have been implemented to ensure that risks are managed in ways to optimise the appropriate and effective use of all resources. A risk assessment has also been undertaken with regard to the current economic climate. An Audit and Risk Committee was formed in May 2014, to examine financial risks and organisational sustainability in more detail.

Strategic risks are identified on an annual basis as part of the annual delivery plan. Trustees receive a quarterly report on the management of these risks at the Audit and Risk Committee; these are then reported on to the full Board of Trustees. Because of the extraordinarily unpredictable environment created by the coronavirus pandemic, the Committee met most months in 2020/21. The highest ranked risks for 2020/21 were failure to secure sufficient core income to sustain the organisation and support growth, and the inability of the charity to deliver in the context of disruption caused by the pandemic. These risks were mitigated by the development and implementation of strategies that were regularly reviewed with progress reported to Trustees at each meeting.

In addition each project maintains its own risk register, and reports on them quarterly to the senior management team through a quarterly reporting template.

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

The formal objectives of the National Literacy Trust are to advance public education in reading, writing and other literacy skills.

guidance for charities whose objects include Education. The Trustees have paid due regard to the ties undertaken are concerned to ensure that a tangible educational benefit is provided to a broad range of people. The Trustees consider that the achievements and performance of the charity, as outlined and reviewed below, demonstrate success in this regard.

We are an independent charity that transforms lives through literacy. Literacy is made up of the four strands of language skills reading, writing, speaking and listening.

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THE NATIONAL LITERACY TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Our mission

We give children and young people from disadvantaged communities the literacy skills to succeed in life.

Our values

To achieve our vision we need to be focused, enterprising and connecting.

Our approaches

We have three ways of addressing our mission. They are:

1. We work with schools to raise literacy levels.

2. We maximise our impact by focusing on the most disadvantaged areas.

3. We campaign to change behaviours and make literacy a priority.

These strategies are delivered through a range of projects which receive restricted funding:

In schools and early years settings

In communities

The National Literacy Trust offers a schools membership programme which gathers and disseminates best practice in teaching literacy through online resources, competitions and enabling schools to work together in clusters. The charity also supports schools with evidence-based training programmes for teachers.

foundations and corporate organisations, and from funding from individuals. The principal funders are WHSmith, , Morrisons Foundation, the Mercers Company, Rank Foundation, Bupa Foundation, the Big Lottery Fund, Comic Relief, Harper Collins and Sport England who provide funding towards core activities such as website development, our Literacy Hubs, support for schools, research and policy work. The JJ Charitable Trust funds Literacy for Learning. British Land and WHSmith are the main supporters of the Young Readers Programme. Kindred Squared Foundation has funded the development of the Virtual School Library. Premier League Foundation supports Premier League Primary Stars. The

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THE NATIONAL LITERACY TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Booker Prize Foundation and the Rothschild Foundation support our work in prisons. The Department for Education funds Small Talk. Penguin Random House funds the Read North East campaign and Puffin World of Stories. Arts Council England funds Connecting Stories.

Our senior management team comprises Jonathan Douglas, Chief Executive; Sam Brookes, Director of Resources; Guy Fowles, Director of Marketing and Communications; Fiona Evans, Director of School Programmes; Darranda Rowswell, Director of Development and Rosemary Thomas, Director of Operations. The pay of the senior management team is agreed by Trustees.

OUR PRIORITIES IN OUR THREE-YEAR STRATEGY

Improving literacy is a national priority for the UK. It sits at the heart of economic success and sustainability, fairness and equal opportunities. The National Literacy Trust exists to lead the national campaign to raise awareness of the issue and find solutions which mobilise the resources of the business, corporate and third sectors.

Our priority is the

relationship between low literacy and poverty, which are mutually reinforcing and intergenerational.

The mission of the National Literacy Trust is to break the relationship between low literacy and poverty to give a new generation the skills to fulfil their opportunities.

-year rolling strategy which describes how we will deliver our mission. This strategy is extended and reviewed annually, responding to the changing content of our work, through discussions with our partners and beneficiaries.

OUR ACTIVITIES 2020/21

/21 was reframed at the end of March 2020 when, as a result of the coronavirus pandemic and the first national lockdown, the majority of children and young people shifted to home learning and families

In this context our mission became more pressing: w in the poorest communities would be significantly weaker 1 in 11 children from disadvantaged communities do not own a single book and up to 40% of adults in our Hub communities have literacy issues. School closures would significantly exacerbate the literacy attainment gap.

However, the partnerships and face-to-face mechanisms which we had used to deliver our work became suddenly inoperable as libraries were closed and the vast majority of children were not in school. We needed a new strategy to deliver our mission.

For the majority of families the best way for the National Literacy Trust to offer literacy support during lockdown was through digital platforms. However, we were also aware that 30% of disadvantaged households would not have access to good quality broadband even if they had a laptop or tablet. Therefore, there was also an immediate need to support families with physical resources of books, writing pads, stationery and other tangible resources. We urgently needed routes to get these directly into the hands of fami

These two strands digital support and physical resources for the digitally excluded became the focus of our strategy in 2020/21.

However, the context changed significantly throughout the year as the nation moved through lockdowns and re-openings of schools and libraries and local services. In response, we maintained an agile approach to delivering our mission throughout the year. As a result, our work in 2020/21 fell into three distinct phases:

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Phase 1: First national lockdown, April to June

Aim: Maintain the engagement of children and young people in literacy activities to prevent the literacy gap from widening.

The charity immediately moved to a two-pronged delivery model to fulfil its mission, which was negotiated with existing funders. It built on the established strengths of the programmes and Hubs and ensured that families from disadvantaged communities could continue to access literacy support during lockdown:

Grow digital support direct to learners and families nationally and locally

We launched two new online platforms: Family Zone to support literacy of children out of school up to the age of 11 and Zone In to support the literacy of secondary-aged students. We worked with all our publisher partners to ensure that high-quality resources were available free of charge. We also repurposed content from our schools programmes to enable them to continue to work with children and young people. We launched digital platforms and networks for each of our Hub areas to support social networks and parenting during lockdown. We launched the Book of Hopes with Bloomsbury as an online publication on our website to support literacy and wellbeing.

Support the digitally-excluded with physical resources

access digital learning, and who were unlikely to have books and resources to support them at home. Working through our Hubs and community partners, including foodbanks and community charities, we distributed books, literacy resources and writing assets.

Both these approaches built on existing strategic commitments. We had already committed to strengthening our direct digital interface with consumers and the link with a diverse range of community and frontline partnerships is an integral element of our strategy in our Hubs. The pandemic massively accelerated this development.

By the end of July the National Literacy Trust had distributed over 300k books and literacy packs directly into the hands of children and families in the most disadvantaged areas, all our programmes had continued to deliver and over 500k unique users had accessed our new online literacy support.

Phase 2: Reopening of schools, July to December

Aim: Re-engage

wellbeing through literacy activities.

The gradual reopening of schools in the summer term was followed by ongoing disruption in the autumn when local and partial lockdowns were impacting on schools and learners.

During this period the National Literacy Trust delivered its mission in a blended way. We continued to develop digital assets that would be vital in supporting children during ongoing disruption to schools. Her Royal Highness The Duchess of Cornwall launched our Virtual School Library at Ivydale Primary School in Southwark in September. This for hundreds of thousands of young readers. We -to-face support for children was strengthened we recruited 90 schools in Middlesbrough, Tyneside, Nottingham and London to the Puffin World of Stories campaign that is restocking primary school libraries in disadvantaged areas and training library coordinators.

Re-engaging learners who had been unable to attend schools was a priority and our programmes were a vital resource for many schools in promoting reading and writing for enjoyment. The theme of racial justice in the context of Black Lives Matters was an important focus, resonating strongly with young learners, and the online Sofa Sessions on Zone In with well-known poets from minority ethnic communities were a highlight of the summer.

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THE NATIONAL LITERACY TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

We aimed to ensure that as well as supporting literacy, all our work would also benefit the emotional wellbeing of children and young people who had been profoundly affected by the pandemic. By September, across our Hubs and schools programmes, we were working with the dual focus of literacy and wellbeing. The Book of Hopes became key to this approach. With the support of the Bupa Foundation and Bloomsbury Publishing, 15,000 copies were sent to 5,000 primary schools with supporting resources and activities. We also launched the massively successful My Dear New Friend letter-writing campaign connecting older people in care homes, isolated because of the pandemic, with children in their communities through letter writing activities.

Phase 3: Return to lockdown, January to March

Aim: Maintain literacy engagement and skills and support wellbeing.

With the announcement of the January lockdown, the majority of children were again not able to be in school. However, a larger number of children continued to attend than in the first lockdown. The online teaching and learning platforms that schools adopted were by this stage more developed than they had been the previous year. The national default solution although not universally used had become the Oak National Academy. The DfE and philanthropic interventions meant that more children were able to access learning online. However, it remained the case that many young people rrespective of hardware access. By January, it was also well understood that lockdowns impact negatively on wellbeing. Whilst early years settings were allowed to remain open, research from the first lockdown showed that under-twos in the most disadvantaged homes would be likely to be highly impacted, partly because they could not access books in public libraries.

The National Literacy Trust responded by identifying two priorities, a revised version of the approach used to address the first lockdown:

Deliver content to support children in school and learning at home, ensuring integration teaching

School Library was relaunched as an integrated element of the Oak National Academy, attracting a quarter of a million users in the first month. A particular highlight was World Book Day when we delivered mass online activities throughout the day, involving HRH The Duchess of Cornwall, Harry Kane and the England football squ Cressida Cowell, reaching thousands of children in homes and in schools. In our Hub areas we launched the Arts Council England-funded Connecting Stories programme, with the support of 52 artists and 26 publishers, producing online events inspiring tens of thousands of young people in our Hub communities.

Provide physical resources to support the reading and writing for digitally excluded children and families

Our partners and supporters again responded generously to supporting our work with the donation of an additional 150,000 books. As a result, large-scale distributions of books and stationery resources occurred through frontline partners in our Hubs. We made a successful emergency bid for £250k from the DfE for resources to specifically support families with preschool children in the most disadvantaged communities.

An important strand of th Throughout 2020/21, despite many prisoners being kept in their cells during the pandemic and the closure of prison libraries and learning and skills units, we maintained our work in prisons and Young Offender Institutions. A vital resource for many prisoners has been the thousands of books which are delivered directly by the National Literacy Trust the broadcasting of our nightly programme on National Prison Radio, Books Unlocked, in partnership with the Booker Prize Foundation.

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THE NATIONAL LITERACY TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

OUR TARGETS FOR 2020/21

access online learning

We distributed 575,643 books, magazines and writing resources to support children during lockdown in disadvantaged communities.

500,000 families using our online literacy support

We had over 1,000,000 unique users to our family focused website Words for Life.

Support the literacy of over 1m children

We supported the literacy of more than 1.8m children: we reached 267,763 young people through programmes and activities, 575,643 through the distribution of books and literacy reading resources and over a million users online.

Work with 4,000 schools to support a recovery curriculum

We worked with 6,492 schools in 2020/21, supporting their efforts to re-engage and inspire learners.

OUR TARGETS FOR 2021/22

Work with 4,500 schools to address literacy recovery

Support 1m young people and families with digital literacy resources

FINANCIAL REVIEW

The financial activities of the year are set out in detail on the attached pages. The net movement of funds for the year was an increase of £696,495. This comprised an increase in restricted funds of £350,880 and an increase in unrestricted funds of £345,615. Overall, the charity's funds increased from £2,233,281 at the beginning of the year to £2,929,776 at the year end, of which £432,659 was in unrestricted funds and £2,497,117 in restricted funds.

Total income for the year has increased from £6.3m in 2019/20 to £7.1m in 2020/21. Following the initial impact of the coronavirus pandemic at the start of the year, we had budgeted to maintain income at the 2018/19 level. However, instead we were able to maximise our income from emergency relief sources as well as maintaining our existing funder relationships. We anticipate maintaining our income at this level in 2021/22. We have new bids in place to maintain income in the absence of emergency relief sources this year, as well as maintaining or growing existing funder relationships.

Total expenditure for the year increased by £0.3m from £6.1m in 2019/20 to £6.4m in 2020/21.

There are several strategies around income aimed at covering core costs: ensuring that funding bids carry the right level of cost allocation, a funding strategy for unrestricted costs and ensuring as much charitable activity as possible is funded through unrestricted sources.

We finished the year with a strong reserves position. Although we view this year as challenging, as businesses evaluate the impact of both Brexit and the coronavirus pandemic, based on both the current position and the forecasts, the Trustees believe that the National Literacy Trust is in a reasonable position and has a robust income and expenditure strategy in place.

The Trustees believe that the charity has sufficient funds to continue its activities for at least twelve months from the date of signing of the financial statements and that there are no material uncertainties impacting upon that assessment.

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THE NATIONAL LITERACY TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

POLICY ON RESERVES

Total funds at 31 March 2021 were £2,929,776 (2020: £2,233,281). Restricted funds, not available for the general purposes of the charity, were at £ 2,497,117 (2020: £2,143,343). There were no designated funds held.

The Trustees aim to maintain free reserves in unrestricted funds at a level which equates to approximately three months of unrestricted expenditure.

The charity holds free reserves in order to:

The balance held as unrestricted funds at 31 March 2021 was £432,659, all of which is regarded as free reserves. This is over three months of unrestricted expenditure (this calculation is tailored as appropriate to include only relevant costs for continuing the charity). The strategy is to maintain the reserves at this level and continue to aim to increase them in line with the growing size of the organisation.

The Trustees are confident that this will be achievable.

POLICY ON FUNDRAISING

The charity does not employ any external professional fundraisers or consultants, and is very careful to comply with all proposed and enacted legislation in this space.

The Trustees (who are also directors of The National Literacy Trust) for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom other jurisdictions.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITOR

The Trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the Trustees have confirmed that they have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

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THE NATIONAL LITERACY TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

I am immensely proud to have chaired the National Literacy Trust in 2020/21. In the toughest of years the charity has had a huge impact on the literacy of children, young people and families in our most disadvantaged communities. Tragically these communities have borne the brunt of the pandemic health and financial inequalities have been exacerbated and all the evidence is now showing that the literacy gap has grown as a result of the temporary closure of libraries and the fact that the majority of pupils have not been able to attend schools.

In the past year the National Literacy Trust has worked heroically to minimise the impact of the pandemic on the reading and writing skills in these communities. The agility with which it has met this challenge means that more than half a million digitally excluded children could carry on reading and learning with books and physical resources which the charity delivered to them through frontline partnerships in our Hub communities. And well over a million young people accessed the National and literacy activities and events online. As the data begins to come through it is apparent that the pandemic has widened the gap more in maths and in other subjects than in literacy for primary aged children. I know that the National Literacy forts have played a vital part in softening the impact.

The Patronage of Her Royal Highness The Duchess of Cornwall has been a source of great inspiration for the team and our partners during the last year. It was a great honour to welcome Her Royal Highness to the launch of our Virtual School Library and to our National Assembly for World families we support has strengthened our mission.

I am incredibly gr business leaders over the past twelve months. They recognise not only the social and moral imperative for raising literacy levels but who also that the economy itself can only recover if literacy skills are in place. The 2021 Literacy Business Pledge has been signed by a group of 83 businesses, convened by KPMG, who are committed to addressing the literacy challenge in partnership with the National Literacy Trust. These partnerships have emp it is the support of reading; it is the investment of British Land in the literacy of the communities that has brought reading alive for the most disadvantaged children in the darkest days of last year; it is the commitment of the Bupa Foundation to reading for wellbeing that has put the Book of Hopes into 5,000 schools. I am grateful for their support and inspired by their commitment.

In the past year we have been thrilled to grow our partnership with Arts Council England. Their support for Connecting Stories, a national festival of reading and writing delivered through our Hubs, is enabling us to engage thousands of young people with activities which engage and excite them and also to convene a new national alliance of publishers working with us to promote reading and writing activities in our Hub communities.

The National Literacy Trust is fortunate to have a highly committed staff team and a group of supportive trustees. Throughout 2020/21 they have worked in partnership, driven by a shared vision of the power of literacy, to ensure that the charity has continued to fulfil its mission in the face of so much suffering and disruption. Together they are committed to ensuring that higher levels of literacy provide a platform for educational and economic recovery.

Dame Julia Cleverdon DCVO CBE Chairman

Date

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Opinion

We have audited the financial statements of the National Literacy Trust the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including 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:

Basis for opinion

We have been appointed auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report to you in accordance with regulations made under those Acts.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of ard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Report of the Trustees other than the The trustees are responsible for the other information contained within the Report of the Trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the

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course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, 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 performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not Report included within the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

Responsibilities of trustees

set out on page 8 and 9, the

trustees (who are also the directors 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 trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable atters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually

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or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities governing document, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Report of the Trustees and remaining alert to new or unusual transactions which may not be in accordance with the governing documents.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to the General Data Protection Regulations. We performed audit procedures to inquire of management whether the charitable company is in compliance with these law and regulations and inspected minutes.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and

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transactions entered into outside the normal course of business and challenging judgments and estimates.

A further description of our responsibilities for the audit of the financial statements is located on the http://www.frc.org.uk/auditorsresponsibilities. This description

Use of our report

Chapter 3 of Part 16 of the Companies Act 2006 accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended). Our audit work permitted by law, we do not accept or assume responsibility to anyone other than the charitable the opinions we have formed.

Zoe Longstaff-Tyrrell (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants Portland 25 High Street Crawley West Sussex RH10 1BG Date 14 October 2021

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Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2021 Unrestricted Restricted Funds Funds Total Funds 2021 2020 Notes Income: Donations and legacies 1.708,718 1.708,718 1.688.789 Income frorn charrt3ble activ￿eS 636,754 4.215.057 4.851.811 4.057.429 Income fiorn olhei trading 8ctivit18S 265,236 44.271 309.507 533.816 other Income 134,721 78.751 213.472 Investment income 377 377 1,489 Total Income 2,745,806 4,338.079 7.083,885 6,281.523 Expendlture: Raising funds 1771,4571 1771,4571 1825,4771 Charitable activitites 3a-b 11,617,796) 13,987,199) 15,604,995) 15,259,825) Interest payable 110,9381 110,9381 Total expenditure 2,400,191 3.987.199 6.387,390 6.085.302 Net Income lor the year 345,615 350.880 696,495 198,221 Transfer between funds 13 12,8941 2.894 Totsl funds brought forward 13 89,938 2.143.343 2.233.281 2.037.060 Total funds carri8d forward 432,659 2.497.117 2.929.776 2.233.281 15

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST BALANCE SHEET AT 31 MARCH 2021 2021 2020 Notes FIXED ASSETS Tangible Assets 17,434 17,434 25,030 25,030 CURRENT ASSETS Stock Debtors Cash al Bank and in hand 8,132 1,356,115 1,554,857 2,919,104 972,558 3,176,446 4,149,004 CREDITORS.. Amounts falling due wthin one year 10 1,121,865 592,337 NET CURRENT ASSETS 3,027,139 2,326,767 CREDITORS.. Amounts falling due after more 11 than one year 1114,7971 1118,5161 NET ASSETS 2,929,776 2,233,281 The funds of the charity.. Reslricled Funds Unrestricted Funds 2,497,117 432,659 2,143,343 89,938 13 2,929,776 2,233,281 These accounts are prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements on pages 15-33 were approved by the Trustees and aulhorised for issue on and signed on their behalf by.. Julia Cleverdon DCVO CBE Chairman CLLWLkry DwuSvJnEdby." Lara White Treasurer OtQG LA 1198ÈÈ5e¢4704FI 15-Sep-21 1 4:12 PM BST Date 16

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH 2021 2021 2020 Notes Cash provided by operating activities 1,632,150 493,781 Cash flows from investing activities.. Investment income Purchases of tangible assets 377 1,489 26,994 Cash used by investing activities 377 125,50SI Cash flows from financing activities.. Interest paid 10,938 Cash used by financing activities 110,9381 Increase in cash and cash equivalents in the year 1,621,589 468,276 Cash and cash equivalents at the beginning of the year 1,554.857 1.086.581 Total cash and cash equivalents at the end of the year 3,176,446 1,554,857 Analysis of cash and cash equivalents 2021 2020 Cash in hand 3,176,446 1,554,857 17

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 1. ACCOUNTING POLICIES al Basis of prèparation The financial statements hav8 been prepared in 8ccord8nce with 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 IFRS 1021 leffective 1 January 20191 Charities SORP IFRS 1021, th8 Financial Reporting Standard applicable in the UK and Republic of Ire18nd IFRS10218nd the Companies Act 2006. The financial statements are presented in sterfing, which is the functional currency of the charitable company. Monetary financial amounts in these financial statements are rounded to the nearest £1. The charity constitutes a public benefit entity as defined by FRS 102_ It is incorpor8ted in England and Wales. bl Golng Concem The charity s activiti8s, together with the factors likely to affect its ftjture development. P8rformance and position are set out in the Trustees, Report. As can be seen from the Trustees, report. our work was significantly impacted by the global pandemic throughout the year, including the Closu￿ of libraries and the impact of lockdown on schools. The organisation immediately moved its delivery model to a blended method of on line and direct delivery of resources to those most in need in order to fulfil its mission. This was agre&d wth funders. The Trustees met on a monthly basis to review the position for the first 9 months of the year. Monthly financial forecasts, including month by month cash flow forecasts to October 2022 are prepared and shared wrth the Trustees. These indicate that the charity can meet its liabilities as they fall due. The forecasts have been prepared based on the m()st up to date information around funder discussions and using detailed wotkforce analysis to r8vi8w our costs. Key moments for this year have been identified where if action is required it can be planned in. A COVID risk register h8$ been produced and is reviewed regularly. On the basis of these forecasts, the Trustees consider that it is appropriate to prepare the accounts on the going concern basis. cl Fix•d Assèts Fixed Assets are capitalised and included at cost. The costs of any assets with a value below £200 are taken to the SOFA when Incurred. Depreciation is provided on a straight line basis so as to write off the Cost of tangible fixed assets over their estimated useful lives. The rates of depreciation employed are as follows.. Office Equipment 25% per annum dl Income Income is accounted for on a receivable basis and is reported gross of related expenditure. The specific bases used are as follows". Voluntary incom8 inclLJd8s grants and donations from companies. trusts and individu81s. Grants and sponsorships receivable Consists of Govemment Grant Income relating lo website development, publications, ptslicy and research and sponsorship of specific projects as well as grants from corporate supporters. Lit81acy training cours8s incom8 is generated from de18gate fees charged to att8ndees of If(8r8Cy courses and seminars. Fundraising income consists of sponsorship in respect of events held and donations in return for promotional materials. Membership subscriptions for online networks are treated as payment for services, and are recognised over the period of membership, i.e. equally over 12 months. Furlough income is recorded when applied for. Interest receivable is included when receivable.

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 {Continued} el Expgnditurg is allocated a$ follows: Charitable Activities.. All expenditure directly relating to the compilation and production of literacy publications, Maintenan￿ of the extensive literacy website and database, and specific literacy projects including grants. Grants are made in order to allow institutions to run community literacy projects. Analysis of grants made in the year have been disclosed in Note 16. Costs of Raising Funds.. All expenditure for the purpose of promoting the charity's activities and encouraging voluntary contributions. Support Costs.. Costs incurred indirectly in support of expenditure on the objects of the charity and include functions such as Human Resources and Information Technology. All costs are allocated between the expense categories of the SOFA on a basis designed to reflect the use of the resource. See Note 3b Analysis ofsupport costs. fj Fund Accounting The unrestricted funds comprise general funds, which are available for use by the Charity for its general objectives. The restricted funds are subject to restrictive conditions made by the grant- making body or donor. Transfers between funds are explained in Note 13. gl Taxation The charity is a registered charity and as such its income and gains falling with Sections 371 to 489 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 are exempt from Corporation Tax to extent that they are applied to its Charitable Objectives. h) Operating leases The rentals payable under Operating Leases are charged to the SOFA on a straight line basis over the terms of the leases. Further information on operating leases can be found in Note 12. il Stocks Stocks are valued at the lower of cost and estimated selling price less costs to sell. Il Pension Scheme The charity operates an auto enrolment defined contribution pension scheme, although the scheme does have a guaranteed element of pension benefits. The pension costs charge represents the amounts payable by the company to the fund in respect of the year. The assets of the scheme are held separately from those of the charity in an independently administered fund. Additional disclosures in respect of the guaranteed element of the pension scheme benefits are given in the notes to the financial ststements. kl Financial instruments The company has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 '01her Financial Instruments Issues. of FRS 102 to all of ils financial instruments. Financial instruments are recognised when the company becomes paty to the contractual provisions of the instrument. 19

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 {Continued} Basic financial assets Basic financial assets, which include trade and other receivables and cash and bank balan￿$, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future re￿ip1S discounted at a market rate of interest. Basic financial liabilities Basic financial liabilities, including trade and other payables. 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. 11 Judgements and key 8our¢e8 of estimation uncertainty In the application of the companvs accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experien￿ and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. The trustees do not consider any of the judgements or estimations to have any significant effect on the financial statements. 20

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 {Continued} 2. INCOME a. Donations and legacies 2021 2020 Donations from individuals Donations from companies Donations from charitable trusts Other donations 237,657 542,690 175,636 752,735 1,708,718 309,302 600,605 67,541 711,341 1,688,789 Income from donations and legacies is unreslricled in both years. b. Income from charitable activities Unreslricled Reslricled 2021 2020 Grants and sponsorships receivable 636,754 4,215,057 4,851,811 636.754 4,215,057 4,851,811 4,057,429 4,057,429 Income from charitable acliviles of £236,471 was unrestricted income in 2020 and the remainder was restricted income. Grants of £1,706,450 were received from the government. There are no unfulfilled conditions or other conb'ngencies attached to these funds. Other trading activities Unreslricled Reslricled 2021 2020 Literacy training Online ne￿Ork subscriptions Earfy Years- Traded Skills Academy - Traded Toolkits, Bookbenches & Little Ladybird Libraries Consultancy & advertising Internship OPFlOrtunities 96,593 131,393 35,985 132,578 131,393 6,036 11,400 2,800 16,300 9,000 309,507 185,440 154,392 11,024 11,995 57,050 87,015 26,900 533,816 6,036 11,400 1.300 15,550 9,000 265,236 1,500 750 44,271 Income from trading acliviles of £402,707 was unrestricted income in 2020 and the remainder was restricted income. d. Other income Unreslricled Reslricled 2021 2020 Furlough income 134,721 134,721 78,751 78,751 213,472 213,472 21

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 IContinu8dl 3. EXPENDITURE al Analys1$ of totsl resources expended rect costs Support costs Total 2021 Grants 2020 W￿1$ Costs of Raising Funds 739,842 31,615 771.457 825,477 Unra8tri¢tèd Charitablo A¢tivitlOS Website. publications, PDlicy & research Literacy trainin9 & consuhancy Online nelwotk Competitions Eady Years- Traded Skills Academy- Traded Hubs Core North East Campaign Literacy Communities Word for Life My Dear New Friend Special Charitable Projects Unrestrl¢ted Charltable Actlvltlss 464.448 109.938 77.421 19.626 70,891 535.339 $67,663 16.9211 103.017 266,300 15,9161 71.505 112,579 3,262 22.888 2,025 1,585 13.776 1,134 103.618 15.7381 13.711 10,630 109.504 8,426 68.361 5.408 122.331 77,353 1,169.458 1.249,200 102.484 19.449 98.874 59.935 5.408 122.331 1.092.105 196,546 38,002 66,085 Re8tTrScted Ch•rltoble Actlvltles Haslings Hub Nollingh8m Hub Swndon Hub Stoke Hub Bradford Hub P&i&rborough Hub Midd16sbrough Hub S¢arborDugh Hub Redcar Hub Birmingham Hub Manchester Hub Story Quest Nollingham Big Lotiery Peierborough Bio Loiiery Black Country Hub Dundee Hub Inspiring Parents Our Stories Bradford Doncaster Hub Blackpool Hub Nollingham & Pelerborough Big Lottery Connecting Stories Suffolk Campaign Liler8¢y hub Ir8nsfer Books Unlocked New Chapters Crimin81 Justice EM￿OyabllIlY Audible Proje Liier8¢y for Laarning E8rfy Yaars Lov6 Our Libraries Young Readers Programm6 Premier Leaguè Readin9 stars Skills Academy Sport and Literacy Words for Work Young Writers Programme Newswise Home Learning Environment TuTn on the Subtitles Re8trlcted Ch•rltoble Actlvltles 33.840 61.025 22.212 5.173 65.672 18.950 25.318 32.137 7.511 58.589 65.896 144.807 56.628 55.453 29.851 6,860 7,817 3,221 40.700 109,294 68.842 69,603 25.433 111,608 4.947 1,924 80.958 6,370 18.724 9,072 26.240 26,701 34.496 144,186 7.285 436 72.833 54,460 64.114 18,017 23,902 168.709 174,445 18,157 74.785 fj1,915 19,689 75.142 70,845 5,973 35.824 108,076 15,286 922 2,359 14,244 9.081 8,043 17.124 278,221 57.009 92.765 66.931 190.106 10.229 1148.1471 47.278 41.351 19.457 22.700 188.621 262.586 79.725 408.486 99.088 14,400 25,315 71.409 118.080 64.670 209.432 9.345 1148,1471 18,125 18091 46.469 41,006 6,730 48.081 45,599 4,082 23.539 7,220 1,416 24.116 17,452 28,656 217.277 183,502 10,325 272.911 254,689 1,033 80.758 42,587 44,577 453.OB3 $44,477 9,878 108.966 86,384 $7,394 9,148 148.041 164,326 28,562 228.423 229,053 26,382 199.474 155,617 21,064 107.869 121,346 79,646 1,337.866 627,466 13.573 3.788.937 198.262 448,338 4,435.537 4.010,625 53,307 58,464 19,326 18841 138.893 199.861 173.092 86.805 1,059.958 198.262 TOTAL 5,620,884 198,262 $57,306 6,376.452 6.085,302 Support cosig of £448,33812020. £349.0821 induded ¥￿thIn restricted projects 8bovÉ are included within unregiricied Éxpenditure in the Slalemenl of Financial Aclwities as Ihey are an allocation of core costs covered by restricted income allocated to core fund 22

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL UTERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 IContlnu8dl 3. EXPENDITURE l¢onUnu•dl bl Analysis of support costs ÈMIÉÈÉ GÈrÈl FI￿¢ lThfarmalian Tèthno1o9y 2021 2020 Raising fundg Website. publications. PDIIGY & research Literacy trainin9 & consuhancy Online nelwotk Competitions Skills Academy-Traded Hubs Core Nonh East Campaign Liierscy Communiiies Words for Life My Dear New Frlend s￿¢181 Charitable Projects Sub total Literacy Hubs Haslings Hub Nollingham Hub Swndon Hub Stoke Hub Bradford Hub Pelerborough Hub Midd16sbrough Hub Scarborough Hub Redcar Hub Birminoham Hub Manchester Hub Story Quest Nollingham Big Lottery Peterborough Big Lottery Black Country Hub Dundee Hub Inspiring Paren15 Our Stories Bradford Doncaster Hub Blackpool Hub Nollingham & Pelerborough Big Lottery Connecting Stories Suffolk Campaign Books Unlocke New Chapters Crimin81 Justi* EM￿OyabllIlY Audible Proje 28.750 31,745 32.555 35,947 2.588 2,857 3.318 3,663 648 716 315 348 4.719 5,210 2.454 2,710 2.283 2,521 1.674 1,849 151,4511 5,676 16,895 23,1731 6,429 19,133 114,3981 1,521 1,950 381 185 2,773 1,443 1,342 31.615 70.891 44,274 94,981 3,978 665 128 62 932 485 451 331 1.389 675 112,5001 112,8301 4.033 3.588 3.262 1.585 1.134 15,7381 10.630 8.426 2,025 11,924 17.0251 8.629 50.554 $5,821 68,718 9,984 29,712 77.353 109,400 1.408 1.598 685 1,555 1,765 756 2.791 3.199 1.242 12261 6.379 12261 263 875 12261 3.469 12,0571 10.048 7,602 8.254 1.245 12,2611 3.425 278 316 135 828 939 403 6.860 7.817 3.221 12261 15.286 12261 922 2.359 12261 14.244 18,422 9,051 11,488 12281 12281 12281 12281 4,271 12281 2,743 12.2841 19,642 10,269 11,675 8,408 3.082 3,404 609 1,812 228 514 252 567 45 302 3.729 95 4.795 3.653 3.958 1.636 4,118 105 5,294 4,034 4,370 1,807 736 2,192 2,818 2,147 2,326 962 23.902 18.157 19.689 5.973 721 781 323 1.598 1,765 316 939 8.043 20,581 1,055 2,776 6,714 3.311 5.480 3,656 6,051 4.833 9.481 12,2611 14,7541 1.fj46 12,9731 143 14,2391 234 2.606 282 1.609 189 16951 144 10.904 1.213 18,5861 1.292 12,1571 218 10.932 2,299 654 654 1.082 1,946 3,221 14.400 25.315 8.334 723 1.187 1.427 1,576 858 945 731 807 6.144 6,784 6.$45 7,227 1.104 1,219 11.644 12,858 3.311 3,656 9,202 798 4,898 425 698 839 503 429 3,e11 3,847 649 6,844 1,946 19.326 18841 18091 6.730 4.082 1.418 28.656 10.325 1.033 44.577 9.878 11.0981 4,416 942 14471 17,622 15,e23 6,726 36,893 7,674 4,464 8,648 27,928 19,731 12,712 54,575 349,082 567,882 Esrly Years Love Our Libraries YoLJng Readets Programme Premiar Leagua Reading stars Skills Academy Sport and Liltracy Words For Work Youn9 Writets Progr8mme Newswise Home Learning Environment Total restricted 3.615 3,992 8.372 9,244 7.040 7,773 4.186 4,622 20.321 22,438 121.310 133,951 222.418 245.503 11,2981 714 2,125 4.373 1,653 4,920 6.041 1,390 4,138 8.969 827 2,460 20.931 4.013 11,943 97.823 23.954 71,300 39.6131 43.922 130,724 9.148 28.562 26.382 21.064 79.646 448.338 603.044 23

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 {Continuedl 3. EXPENDITURE Icontinuedl cl Analy818 of costs of raising funds 2021 2020 Direct staff costs Other direct costs Support costs 680,103 59,739 31,615 771,457 678,264 102,939 44,274 825.477 Costs of raising funds was all unrestricted in 2020 and 2019. 4. NET INCOME Net income for the year is slated after charging". 2021 2020 Auditor's remuneration - audit fees Operating leases - equipment Operating leases - land and buildings Depreciation 19,200 1,564 140,927 7,596 19.200 1,767 131,652 8,875 5. STAFF COSTS 2021 2020 Wages and salaries Social security costs Pension costs Training and recruitment 3,471,325 352,993 286,434 29,073 4,139,825 3,393,486 343,317 270.620 100.129 4,107.552 These costs include Tedundancy paid in the year of £6,725 and temporary staff costs of £42,277. 24

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 {Continuedl 6. EMPLOYEE AND TRUSTEE INFORMATION The average number of employees during the year was 10912020.. 1081. The number of employees who received emoluments in the following ranges was". 2021 2020 £60,001 - £70,000 £70,001 - £80,000 £90,001- £100,000 The Trustees were not entitled to and did not receive any emoluments from the charity during the year {2020. £Nill. No expenses were reimbursed lo the Trustees during the year12020.' one Trustee £1701. During the year, no donations were re￿iVed from any Trustee12020.' no donations). The charity considers its key management personnel to comprise of Jonathan Douglas and the members of the senior management team. Remuneration, benefits and employevs national insurance contributions recorded in the year by key management personnel were £486,31312020'. £464,157). There are no related party transactions to disclose. 7. TANGIBLE FIXED ASSETS Office Equipment Total Cost At 1 April 2020 Additions At 31 March 2021 60,027 60,027 60,027 60.027 Depreciation At 1 April 2020 Charge for the Year At 31 March 2021 34,997 7,596 42.593 34,997 7.596 42.593 Net Book Value At 31 March 2021 17,434 17,434 At 31 March 2020 25,030 25.030 . STOCK 2021 2020 Literacy Toolkits 8,132 25

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 {Continuedl 9. DEBTORS 2021 2020 Other Debtors Prepayments and Accrued Income 292,436 680,122 972,558 701,354 654,761 1,356,115 Included within Other Debtors is £32,27912020 £32,279) relating to rent deposit. This balance is receivable in > 1 year. 10. CREDITORS: Amounts falling due within one ygar 2021 2020 Trade Creditors Taxation and Social Security Other Creditors Accruals and Deferred Income 463,778 104,065 63,905 490,117 1,121,865 174,276 118,960 62,502 236,599 592,337 Included within Other Creditors are amounts lotalling £24,490,12020 £18,333) relating lo the Section 75 debt on withdrawal from the Pension Trust Scheme, following the reclassification of some to long term Movement in Deferred Incorne 2021 2020 Brought forward at 1 April 2020 Released during year Deferred during year Carried forward at 31 March 2021 118,948 1739,3401 819,041 198,649 94,131 1868,6191 893,436 118,948 The deferred income is made up of Online Network Subscriptions income, Literacy Training income for courses which will be lake pla￿ in the next financial year and deferred programme income. 11. CREDITORS: Amounts falling due aftor more than one year 2021 2020 Other Creditors 114,797 114,797 118,516 118,516 Included within Other Creditors are amounts lotalling £114,79712020 £118,516) relating to the Section 75 debt on withdrawal from the Pension Trust Scheme, following the reclassification of some from short term 12. FUTURE FINANCIAL COMMITMENTS Operating lease$ As at 31 March 2021 the charity had total commitments under non-cancellable operating leases as set out below.. Land & Buildings 2021 2020 Other 2021 2020 Within one year Within 2 10 5 years 123,760 17,883 141,643 140,927 174,918 315,845 1,100 2,108 3,208 1,473 1,473 26

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 (Continued) 13. FUNDS At At 01-Apr-20 Income Expenditure Transfers 31-Mar-21 RESTRICTED FUNDS 1. Literacy Hubs 2. Hastings Hub 3. Nottingham Hub 4. Swindon Hub 5. Stoke Hub 6. Bradford Hub 7. Peterborough Hub 8. Middlesbrough Hub 9. Scarborough Hub 10. Redcar Hub 11. Birmingham Hub 12. Manchester Hub 13. Story Quest 14. Nottingham Big Lottery 15. Pelerborough Big Lottery 16. Black Country Hub 17. Dundee Hub 18. Inspiring Parents 19. Doncaster Hub 20. Blackpool Hub 21. Nottingham & Pelerborough Big Lottery 22. Connecting Stories 23. Suffolk Campaign 24. Books Unlocked 25. New Chapters 26. Criminal Justice Employability 27. Audible Project 28. Literacy For Leaming 29. Early Years 30. Love Our Libraries 31. Young Readers Programme 32. Premier League Reading Stars 33. Sport and Literacy 34. Words For Work 35. Young Writers Programme 36. Newswise 37. Home Learning Environment 38. Other Restricted Projects 148,147 133,8401 161,0251 122,2121 15,1741 165,6711 118,9501 125,3181 132,1371 17,5111 158,5891 185.8961 1144,8071 156,6281 155,4531 129,8511 148,147 427 53,541 12,908 34,267 72,911 13,324 2,280 40,369 17,543 24,714 40,792 41,655 21,796 2,894 37,854 23,861 611 55,173 11,573 24,554 4,140 401 22,285 14,7461 36,773 12,552 22,454 63,828 4,062 69,143 3,638 4,070 10,191 16,9031 9,668 8,475 103,178 65,394 148,476 44,534 53,296 2,746 8,475 9,081 50,238 78,273 84,646 345,946 19,0811 157,0091 192,7651 166,9311 1190,1061 110,2291 31,946 42,373 147,2781 27,566 49,479 141,3511 11,552 23,037 119,4571 15,999 38,136 122,7001 255,356 196,936 1188,6211 156,072 320,790 1262,5861 210,658 133,323 179,7251 277,860 513,983 1408,4861 44,618 93,118 199,0881 {3781 158,891 1138,8931 206,360 295,643 1199,8611 116,811 183,742 1173,0921 83,185 15,023 186.8051 275,099 1,033,124 11,258,219) 100,000 7,944 46,767 1,171 32,275 17,715 155,840 110,2291 27,041 35,694 15,132 31,435 263,671 214,276 264,256 383,357 38,646 19,620 302,142 127,461 11,403 50,004 100,000 2,143,343 4,338,079 13,987,198) 2,894 2,497,117 UNRESTRICTED FUNDS General Funds TOTAL FUNDS 89,938 2,745,806 12,400,191) 12,8941 432,859 2,233,281 7,083,885 6,387,389 2,929,776 27

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 (Continued 13. FUNDS {continuedl 2019-20 At 01-Apr-19 At Income Expenditure Transfers 31-Mar-20 RESTRICTED FUNDS 1. Literacy Hubs 2. Hastings Hub 3. Nottingham Hub 4. Swindon Hub 5. Stoke Hub 6. Bradford Hub 7. Peterborough Hub 8. Middlesbrough Hub 9. Scarborough Hub 10. Redcar Hub 11. Birmingham Hub 12. Manchester Hub 13. Story Quest 14. Nottingham Big Lottery 15. Pelerborough Big Lottery 16. Black Country Hub 17. Inspiring Parents 18. Our Stories Bradford 19. Doncaster Hub 20. Blackpool Hub 21. Books Unlocked 22. New Chapters 23. Criminal Justice Employability 24. Audible Project 25. Literacy For Leaming 26. Early Years 27. Love Our Libraries 28. Young Readers Programme 29. Premier League Reading Stars 30. Skills Academy 31. Sport and Literacy 32. Words Forwork 33. Young Writers Programme 34. Newswise 35. Home Learning Environment 36. Tum on the Subtitles 37. Other Reslricled Projects 12,490 49,474 18,732 97,893 5,636 41,398 83,475 9,391 129,2181 16,552 31,808 27,540 161,519 6,780 76,271 13,625 148,801 49,597 49,597 136,441 140,361 97,654 58,475 98,517 42,373 43,584 17,830 33,898 190,173 231,083 190,645 194,493 50,770 195,749 461,233 424,211 19,936 103,390 16,378 36,553 37,300 118,000 161,929 245,556 52,211 200,488 226 191,593 121,921 726,070 61,427 175,0001 118,1261 190,8721 160,5521 1100,1201 14,632 12,1521 31.370 16,5981 27,698 19,3001 126,9291 1139,9151 16641 151,7171 120,3011 1154,8031 151,6461 159,1701 199,6681 1248,6371 169,9561 127,6981 150.5311 7,944 151,7501 46,767 142,1021 31,946 141,1831 27,566 16,2781 11,552 117,8991 15,999 1165,8801 255,356 1239,0661 10,000 156,072 135,8611 210,858 1507,58411100,0001 277,860 178,7101 44,616 152,9311 1155.6781 1201,1251 1135,8861 1108,6341 1572,8921 13.573 41,655 21,796 202 1,355 37,854 23,881 611 55,173 11,573 24,554 4,140 401 22,285 14,7461 36,773 33,569 5,457 10,816 8,403 24,334 4,827 108,276 31,675 25,165 13781 206,360 116,811 83,185 275,099 100,000 100,000 1,796,817 3,952,067 3,661,543 56,002 2,143,343 UNRESTRICTED FUNDS General Funds TOTAL FUNDS 240.243 2.329.456 2,423,759 2.037.060 6.281.523 16,085.3021 56,002 89,938 2,233,281 Included under Reslricled Funds are any donations or grants received which are subject lo a reslriclion imposed by the donors lo the purpose for which the funds should be spent. The as50cialed expenditure against income is included under restricted funds expenditure. Income which has not yet been expended is carried forward as restricted funds. £2,894 was transferred from Unrestricted Funds to Stoke Hub from general funds expenditure. 28

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 (Continued) 13. RESTRICTED FUNDS Icontinuedl Our programmes and their funding sources.. l. Literacy Hubs- funding for cross-hub working. 2. Hastings Hub- a literacy hub e5t3blished in Ha5tings. 3. Nottingham Hub- funded by Nottingham City Council and Srnall Step5 Big Change5. 4. Swindon Hub- originally funded WH Smith Plc. 5. Stoke Hub- a literacy hub established in Stoke. 6. Bradford Hub- a literacy hub established in Bradford. 7. Peterborough Hub- funded by Peterborough City Council. 8. Middlesbrough Hub- funded by Middleborough Public Health. 9. Scarborough Hub- f(Jnded by Scarborough Borough Council. 10. Red¢ar Hub- funded by Public Health NE. 11. Birmingham Hub- funded by Birmingham University. 12. Manchester Hub- funded by Manchester City Council. 13. Story Quest an innovative project around walk and talk trai15 in Stoke, funded by Sport England. 14. Nottingham Big Lottery - funding from the Big Lottery Fund to 5UPPOrt the hub for the next three years with a focu5 on community consultation and literacy champions. 15. Peterborough Big Lottery- funding from the Big Lottery Fund to support the hub for the next three years with a focus on community consultation and literacy champions. 16. Black Country Hub- mini literacy hubs focused on early years. 17. Dundee Hub- starting to bring together funders to create a hub in Scotland. 18. Inspiring Parents engaging with disengaged parents of Year S low achieving children to mprove their children's reading levels. 19. Doncaster Hub a literacy hub funded by the Doncaster OA. 20. Blackpool Hub- a literacy campaign funded by Blackpool OA and LA. 21. Nottlngham & Peterborough Blg Lottery - funding from Big Lottery to deliver a Doorstep to Digital project during Lockdown. Thi5 was in deficit at the year end with the income being received in arrears and received post year end 22. Connecting Stories - a cross hub campaign funded by Arts Council. This project is to promote creative writing and reading for enjoyment acros5 14 hub5 and with the aim of engaging 70.000 people. 23. Suffolk Campaign a campaign across Suffolk funded by Suffolk County Council. This was in deficit at the end of the year with the income received in May. 24. Books Unlocked a reading initiative targeting enjoyment of reading and access to quality literature, working through prison and young offender institution library reading groups, school. college, public library and community reading groLJPS. 25. New Chapters funded by Rothschild FoLJndation to work in Aylesbury Youth Offending Institute IYOII to develop a YOI ReadinE for Pleasure proEramme. 26. Crlmlnal Justlce Employablllty- a YOI version of Words for Work. 27. Audible Project- inspiring Young Offenders through audible book5 and making a podcast. 28. Literacy for Learning- a revolutionary approach to improving secondary school language and literacy. Funding from JJ Charitable Trust received to scale up the previou5 programme. 29. Early Year5 training practitioners and volunteers to work with parent5 and children, building parents, confidence so that they can support their children's communication. language and literacy skills at home. Funded by the Department for Education Ilpswich Opportunity Areal, Glasgow Local Authority. Manchester Local Authority, The Nuffield Foundation and Trusts and Foundations including Dulverton and Mercers. Our Early Years programmes inclLJde Early Words Together, Ear Words Together@2, HELLO and Everyone Ready for School. 29

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 (Continued) 13. RESTRICTED FUNDS Icontinuedl Our programme5 and their funding sources Icontinuedl.. 30. Love Our Llbrarles - transforming primary school libraries and reading for pleasure across the whole School with the gift of a new and diverse book collection and by developing the skills and book knowledge of teachers. enabling them to become reading for pleasure champions and library coordinators. Our libraries programmes include Love our Libraries, Puffin World of Stories, Get Islington Reading. Funded by Penguin Random House IPuffin World of Stories) together with Trusts and Foundations including Mercers and NYC Opportunity Area. 31. Young Readers Programme - motivating children from disadvantaged backgrounds to read for enjoyment and giving them the chance to choose new books to keep through a Series of fun events. Funded by Corporates incl(Jding British Land, WH Smith Plc, Slaughter & May, Goldman Sach5 and Tru5t5 and Foundations including John Laing Charitable Trust. The Unwin Charitable Trust and the Philip and Marjorie Trust. 32-33. Premier League Reading Stars, Sport and Literacy- working with high-profile partners such as the Premier League and England Rugbyi we deliver literncy programmes, competitions and event5 using sport and role models to engage and inspire pupils to read and write more. Funded by Premier League, Football Association, BT Supporters Club, Comic Relief (Try for Changel, Clarkg and Tru5t5 and Foundation5. Our Sport and Literacy Programmes include Premier League Primary Star5, Rugby Reading Champions, Skills Academy and Gamechangers our programmes in Alternative Provision. 34. Words for Work joining schoo15 and businesses together to give young people fro disadvantaged backgrounds authentic opportunities to practise the communication and literacv skills they will need to be successful in the workplace. Funded by the Careers Enterprise Foundation and Corporates including Provident, Cleary Gottlieb and Lancome. Our Words for Work programmes include Words for Work Key Stage 3, Words for Work Post 16, Words for Work.. Women in Leadership and Words for Work.. Dream Big IKey Stage 11. 35-36. Young Writers Programme and Newswise providing memorable experience5. a re31 purpose and a(Jdience, access to professional writers and str(Jctured writing strategies to inspire and improve 5tudent5' writing. Funded by Trust5 and Foundation5 including Alasol. Paul Hamlyn Foundation and Corporate5 including Audible. Google (via Guardian Foundation), Royal British Legion. Our Young Writers pro£rammes include Newswise, Young City Poets and IPEEL. 37. Home Learning Environment- funded by the Department for Education to harne55 the power of businesses and business volunteers to work with disadvantaged families to improve the home learning environment. 38. Other Restricted Projects - thi5 money has been transferred from Young Reader5 Programme where a surplus of funds have built up over a period of years and will be held until the Senior Management Team decide on a suitable use for the excess funds. 30

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 {Continuedl Net Current Assets & Creditors 1 Year Fixed Assets 2021 Total 14. ANALYSIS OF NET ASSETS BETWEEN FUNDS Reslricled Funds.. 1. Literacy Hubs 2. Haslings Hub 3. Nottingham Hub 4. Swindon Hub Stoke Hub 5. Bradford Hub 6. Peterborough Hub 7. Middlesbrough Hub 8. Scarborough Hub 9. Redcar Hub 10. Birmingham Hub 11. Manchester Hub 12. Story Quest 13. Nollingham Big Lottery 14. Pelerborough Big Lottery 15. Black Country Hub 16. Dundee Hub Inspiring Parents 17. Doncaster Hub 18. Blackpool Hub 19. Nollingham & Peterborough Big Lottery 20. Connecting Stories 21. Suffolk Campaign 22. Books Unlocked 23. New Chapters 24. Criminal Justice Employabilty 25. Audible Project 26. Literacy For Learning 27. Early Years 28. Love Our Libraries 29. Young Readers Programme 30. Premier League Reading Stars 31. Sport and Literacy 32. Words For Work 33. Young Writers Programme 34. Newswise 35. Home Learning Environment 36. Other Reslricled Projects 148,147 427 53,541 12,908 148,147 427 53,541 12,908 12,552 22,454 12,552 22,454 63,828 4,062 69,143 3,638 4,070 10,191 (6,903) 9,668 8,475 63,828 4,062 69,143 3,638 4,070 10,191 16,9031 9,668 8,475 1,171 32,275 17,715 155,840 110,2291 27,041 35,694 15,132 31,435 263,671 214,276 264,256 383.357 38,646 19,620 302,142 127,461 11,403 50,004 100,000 1,171 32,275 17,715 155,840 110,2291 27,041 35,694 15,132 31,435 263,671 214,276 264,256 383,357 38,646 19,620 302,142 127,461 11,403 50,004 100,000 2,497,117 415,225 2,912,342 2,497,117 432,659 2,929,776 Unrestricted Funds.. 17,434 17,434 31

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 {Continuedl Net Current Assets & Creditors 1 Year 14. ANALYSIS OF NET ASSETS BETWEEN FUNDS Icontinued> 2019-20 Fixed Assets 2020 Total Reslricled Funds.. 1. Nottingham Hub 2. Swindon Hub 3. Bradford Hub 4. Peterborough Hub S. Middlesbrough Hub 6. Scarborough Hub 7. Redcar Hub 8. Birmingham Hub 9. Manchester Hub 10. Story Quest 11. Nottingham Big Lottery 12. Pelerborough Big Lollery 13. Black Country Hub 14. Doncaster Hub 15. Blackpool Hub 16. Books Unlocked 17. New Chapters 18. Criminal Justice Employabilty 19. Audible Project 20. Literacy For Learning 21. Early Years 22. Love Our Libraries 23. Young Readers Programme 24. Premier League Reading Stsrs 25. Sport and Literacy 26. Words For Work 27. Young Writers Programme 28. Newswise 29. Home Learning Environment 30. Other Reslricled Projects 41,655 21,796 37,854 23,861 611 55,173 11,573 24,554 4,140 401 22,285 {4,7461 36,773 7,944 46,767 31,946 27,566 11,552 15,999 255,356 156,072 210,658 277,860 44,616 13781 206,360 116,811 83,185 275,099 100,000 41,655 21,796 37,854 23,861 611 55,173 11,573 24,554 4,140 401 22,285 14,7461 36,773 7,944 46,767 31,946 27,566 11,552 15,999 255,356 156,072 210,658 277,860 44,616 13781 208,360 116,811 83,185 275,099 100,000 2,143,343 64,908 2,208,251 2,143,343 89,938 2,233,281 Unrestricted Funds". 25,030 25,030 32

Docusign En¥ÈlopÈ ID." C6E0746945FA4088-B553-0SFC44469FOA THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 {Continuedl 15. PENSION COSTS Employees are offered the opportunity to contribute from 10/0 of their basic salary. IThere is no obligation to make a personal contribulionl. The charity contributes 8.kn of basic salary and Royal London is our pension provider. 16. GRANTS AWARDED Number of grants 2021 Number of grants 2020 Foundation Years Trust Coast & Vale Community Action Early Years Alliance Institute of Wellbeing 54,687 53,964 44,611 45,000 22,132 12,500 10,201 8,000 198,282 52,833 17. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES 2021 2020 Net movement in funds 696,495 196,221 Adjustments for.. Depreciation 7,596 8,875 Investment income 13771 11,4891 Interest paid 10,938 Decrease in stocks 8,132 10.617 Decrease in debtors 383,557 146,150 Increase in creditors 525,809 133,407 Net cash used in operating activities 1.632.150 493.781 18. FUNDS RECEIVEO AS AGENT The charity has agreed to administer a bank account on behalf of Annington Management Ltd for a campaign lo show the benefits of using subtitles in children's television programmes. Al the balance sheet date funds of £105,00112020'. £60,189 in reslricled funds) were held in the account. During the year funds of £132,50012020." £75,000) were received into the account and £91,438 were paid out {2020.' £76,238). An admin fee of £3000 was received. 33