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2022-03-31-accounts

DocuSign Envelope ID: 493291E6-2159-45D5-952B-F55EB696B1DE

THE NATIONAL LITERACY TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

THE NATIONAL LITERACY TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

CONTENTS
Report of the Trustees 1
Report of the lndependent Auditor 13
Statement of financial activities 17
Balance sheet 18
Statement of cashflows 19
Notes to the accounts 20

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THE NATIONAL LITERACY TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

The Trustees present their annual report together with the financial statements of the charity for the year ended 31 March 2022.

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 Joanna Prior (Chair, from 8 February 2022) Julia Cleverdon DCVO CBE (Chair, until 8 February 2022) Matthew Bradbury (from 20 July 2022) Louise Doughty Luisa Edwards Ben Fletcher Natasha McMullen Liz Robinson (until 8 February 2022) Professor Michelle Shaw (from 26 May 2022) 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 Catherine Hardwick

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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 charity’s 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. The highest ranked risks for 2021/22 were failure to secure sufficient core income to sustain the organisation and support growth and the risk of moving to a more distributed organisation. 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 charity’s 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.

The Trustees have read the Charity Commission’s guidance on public benefit, and the specific guidance for charities whose objects include Education. The Trustees have paid due regard to the Commission’s guidance, and all who make decisions about the activities 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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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 directly with children and their families

2. We work with schools and settings

3. We work with communities and partners

These approaches 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.

The charity receives income from a variety of sources including charitable trusts and foundations, corporate organisations, central and local governments and from individuals. The principal funders of our core activities such as website development, our Literacy Hubs, support for schools, research and policy work are Arts Council England, the Authors’ Licensing and Collecting Society, Barclays, Bloomsbury Publishing, Blackpool City Council, Bupa Foundation, Enterprise Rent-A-Car, Esmée Fairbairn Foundation, Estée Lauder, Experian, Fidelity UK Foundation, KPMG, McDonald’s, Morrisons Foundation, the Mercers Company, the National Lottery Community Fund, Provident Financial, St James's Place Charitable Foundation, Siemens, Suffolk County Council, Sport England, University of Birmingham, Wesleyan, WHSmith. British Land and WHSmith are the main supporters

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of the Young Readers Programme. Chase, Penguin Random House and Burberry fund our primary school library improvement programme. Premier League Foundation supports Premier League Primary Stars. Lancôme is the main funder for Words for Work. The Booker Prize Foundation and the Rothschild Foundation support our work in prisons. The Department for Education funds Small Talk. Department for Health & Social Care and the Worwin UK Foundation fund our Early Words Together programme. Paul Hamlyn Foundation, Audible and Rey Paper support our Young Writers programme.

Our senior management team comprises Jonathan Douglas, Chief Executive; Sam Brookes, Director of Resources; Ceri Berkovitch, 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.

The focus of the National Literacy Trust’s work is children and young people. 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.

The National Literacy Trust’s work is directed by a three-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.

We identified the following key aims for 2021-22:

1. We will work directly with children and their families to ensure:

2. We will work with schools and settings so that:

3. We will work with communities and partners to ensure:

4. We know that to fulfil our mission we need to become a more diverse and inclusive charity, better at listening to and working in partnership with communities.

The diagram shows how these aims drive our mission.

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OUR ACTIVITIES 2021/22

The year began as the education system emerged from the second period in a year when UK schools were closed to most pupils due to Covid. Across the UK schools and settings reopened in February and March 2021. 2021/22 was marked by ongoing disruption due to Covid. In the preceding year most children were estimated to have lost half a year of face-to-face schooling. 2021/22 was marked by a growing awareness of the scale and priorities of post-pandemic education recovery. The challenges of maintaining consistent delivery during a period of disruption and uncertainty and focusing our support on the needs of children, young people and learners who had suffered most during the pandemic became a priority.

By April 2021 we had identified three themes which characterise our work to support literacy recovery:

A focus on literacy recovery has in no way undermined our ongoing activity; in fact, it has given it a fresh impetus and focus. Our programmes and campaign have become a major focus for rebuilding the reading stamina of children and young people, supporting early language and communication catch up and jointly addressing reading, writing and wellbeing for children who have suffered most during the previous year.

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Our work directly with children and their families

Aims

Recovery from the impact of the pandemic on literacy was a key focus of our work directly with children, young people and their families during 2021/22. Research showed that the challenge was most acute for disadvantaged pupils in deprived areas where secondary pupils by the summer term were demonstrating a learning loss of 2.7 months in reading. Our work directly with children and their families addressed this challenge by focusing on young people specifically in the most disadvantaged areas of the UK, where the National Literacy Trust Hubs and regional campaigns are located. Over the year 293,721 books were distributed by the Trust to disadvantaged children in these places, which were also the focus of large-scale national literacy programmes and local initiatives to inspire and reengage young people.

The largest of these was Connecting Stories, supported by Arts Council England and a consortium of publishers. The project consisted of two large-scale national campaigns through our Hub network to directly support the literacy of children and families who had been most affected by Covid. The first ran until September 2021 with support from 26 publishers and 55 authors to reach children in the 14 most disadvantaged areas of the country with the lowest literacy rates. 95,912 children and their families engaged in events and activities to inspire them to read and write and to support their mental health and wellbeing. The children were encouraged to write stories which were published in 16 anthologies, 12,105 copies of which were distributed in the communities.

The second phase was launched in October 2021 and will run until March 2023. Activity in the first month included the Take 10 campaign, encouraging reading for wellbeing, with over 165,000 participants. The focus of this phase is strengthening community partnerships and co-creation in the Hub areas. By the end of March 2022 reading and writing activities in the second phase had so far reached 141,252 people in the Hub communities.

Across 10 of our Hubs we have recruited a cohort of community Literacy Champions to support literacy activity and partnerships in the community. We now have 439 active Literacy Champions and more recruited and waiting to be trained. They are enabling important activities and are particularly successful at engaging families – for instance, in Nottingham, on International Women’s Day 8 March 2022 Literacy Champions delivered events at Nottingham Mosque and New Art Exchange which reached 90 disadvantaged families.

Working with the DfE’s Hungry Little Minds campaign, our Home Learning Environment team supported the early language and literacy environments of families with babies and pre-school, children in 12 areas where there are concerns early child language development is weak. This approach is built upon a place-based programme of activity, including the development of local area passports post-Covid, plugging families back into early years activities and provision as well as digital engagement and Facebook Live events.

As well as the national programmes, individual National Literacy Trust Hubs have developed their own local activities, resources and approaches to enable them to work directly with families and children: the Bradford Stories Bus was launched in October 2021, promoting reading and encouraging families in Bradford’s target wards; the Peterborough BookBench trail has been on display in museums, shopping centres, cultural hubs and libraries across the city, with benches designed by pupils at 11 schools, working with six artists; summer 2021 also saw the culmination of our three-year Story Quest project in Stoke; and the Doncaster Hub launched a Literacy Lab at Ted Hughes’s former secondary school in Mexborough with guests including representatives from Faber, the Arts Council, Doncaster mayor, Carol Hughes (Ted’s widow) and illustrator Chris Mould. In the following weeks 150 children visited the Literacy Lab.

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Our campaigns to end book poverty grew during the year. In November 2021 we announced the Marcus Rashford Book Club, an initiative with Macmillan Children’s Books and KPMG, led by Rashford, which will see books donated through primary schools in 2022-23, reaching as many children as possible from disadvantaged backgrounds.

Our work with schools and settings

Aims

During 2021/22 we worked closely with schools to develop resources and approaches to help them address the challenge for post-pandemic literacy recovery. We focused our support on schools in disadvantaged communities. Compared with schools with a low percentage of pupils eligible for free school meals, decreases in scores during the pandemic for schools with high percentages of pupils eligible for FSMs were approximately twice as severe

A particular focus of our support for schools in 2021 has been primary school library provision. 1,000 primary schools in disadvantaged areas do not have a school library. Creating libraries in these schools to support literacy recovery has been a key priority for 2021/22. To address this challenge we have attracted new funders and formed the Primary School Library Alliance. With a budget of £3.4m, this is now the largest school library development action plan in the UK. The Alliance aims to equip and stock new libraries and train library coordinators. It is now funded to support libraries in 650 schools, working with 360 in 2021/22 and supporting over 100,000 pupils from disadvantaged communities.

The Primary School Library Alliance incorporates the World of Stories programme, which has worked with 225 primary schools since 2018, offering free books and resources together with bespoke teacher training. In partnership with Puffin, part of Penguin Random House, the programme will be expanded over the next three years with additional funding from Arts Council England. Chase Rewarding Futures is a partnership between retail bank Chase and the National Literacy Trust, also supported by Puffin. It is now funded to develop 150 new primary school libraries. In addition, we are installing Marcus Rashford Book Club libraries in schools in Leeds, Manchester and London through our partnership with Burberry.

With an awareness that secondary schools with a high proportion of pupils from disadvantaged backgrounds had learning losses 50% higher than those serving fewer pupils from disadvantaged backgrounds, we have also strengthened our secondary whole-school Literacy for Life programme, growing its reach in disadvantaged areas. The programme promotes the systematic teaching of literacy in around 20% of England’s state secondary schools. Over two thousand bookings were received for the Literacy for Learning conference in 2021 and a successful Festival of Science and Imagination for Literacy for Learning schools was held in July 2021.

Our Sport and Literacy programmes are now embedded in thousands of schools in England and have played a vital role in reengaging learners after the pandemic. Over 2,000 schools attended our sport and literacy webinar events, reaching at least 75,000 children, and there have been more than 3,700 downloads of schools literacy resources for Premier League Primary Stars. Our Game Changers programme, specifically designed for excluded students, has been successfully evaluated : increased reading and overall confidence emerged as a key outcome for pupils. 62% of pupils said they felt more confident in school after taking part in Game Changers and 74% felt that after taking part they could be more successful in life. The programme uses relatable texts, highly-scaffolded resources and football activities to motivate and equip young people to read.

Our first National Reading Champions Quiz for schools took place in April and May 2021. It was a high-profile activity with 17 regional heats, 519 teams, 2,000 children, 100 librarians and teachers, 50 hours of quizzing, 8 celebrity authors and 7,000 downloads of accompanying reading challenges supported by 10 MPs tweeting.

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Our work to support early language and literacy with early years settings gained prominence and grew in scale as the negative impact of the pandemic on the communication and literacy development of children in the early years became apparent. Early Words Together has been an important element of the response of many settings. During the year we have also piloted it in women’s refuges and with local migrant and refugee charities. First Words Together, our language programme for families which has been running for two years, has been expertly integrated into the children’s centres’ speech and language offer in Birmingham. The programme includes a community campaign.

Our work with criminal justice settings continues to grow. Books Unlocked (our reading programme with the Booker Prize Foundation) grew by 12% to reach 102 settings with reading groups and author visits restarting in early 2022. National Prison Radio broadcasts nightly serialisations of books promoted through the programme across the prison estate. 1,470 copies of featured books were requested and distributed to prisoners. Evaluation has highlighted the impact of Books Unlocked: 61% of prisoners taking part said their reading skills have improved since taking part in the programme; 67% of participants reported they now talk more about reading; 63% said they were more confident with their reading since taking part in Books Unlocked; and 79% reported higher levels of wellbeing as a result of taking part in the programme. Our New Chapters programme is the platform for our work in Young Offender Institutions, where we deliver a combination of reading groups, wing libraries, author visits, reading champions, CPD for staff, audiobooks activities and Creative Writing Groups.

Our work with communities and partners

Aims

Increased sustainable literacy leadership in disadvantaged areas

More individuals, influencers and partners take action to raise literacy levels

During 2021/22 the focus of much of the research activity of the National Literacy Trust has been understanding the specific challenges created by the educational disruption caused by the pandemic. The 2021 Annual Literacy Survey gave important insight into the way in which literacy gaps had been exacerbated. The 2022 survey in which 70,000 young people participated, will help us understand its impact on literacy trends. The National Literacy Trust has also now established a Covid and Literacy Observatory, aggregating and synthesising the emerging national and international evidence base of the impact of the pandemic on literacy to help policymakers, teachers and other stakeholders make sense of the challenge. During the year we also hosted a number of webinars on the issue. Minister Damian Hinds, former Secretary of State for Education, spoke at an event in May about the impact of the pandemic on the Home Learning Environment and earlier in the year it was the focus of our annual Talk To Your Baby conference. These activities are proving invaluable in making the argument for a focus on literacy within post-pandemic recovery, alongside public-facing activity such as the campaign we launched with WHSmith and Marcus Rashford in May.

Research has shown that the literacy in some regions and places has suffered disproportionately as a result of education disruption. These places are invariably the poorest regions where literacy was already lagging behind. For instance, primary-aged pupils were found to have between 1.7 and 2 months learning loss in reading, but pupils in the North East and Yorkshire and the Humber lost 2.4 months and 2.2 months respectively. This has increased the significance of our Hubs and regional campaigns and the development of leadership in these areas. In the past year we have established Community Consultation Groups to work alongside the Strategic Steering Groups in our Hubs, to consolidate leadership.

We have also launched local literacy campaigns in non-urban/semi-rural settings. We launched a Suffolk reading campaign in September, focusing on market towns where there is a strong relationship between disadvantage and literacy. Work began in Haverhill in October, Stowmarket in January and Lowestoft will launch in April. In Cornwall we started work to establish a local literacy campaign in Redruth with funding from a philanthropist, which will follow an early years cohort approach.

We have also worked hard to convene and grow business partnerships to support literacy recovery. The Vision for Literacy Business Pledge brings together over 80 businesses who have a shared

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commitment to raising literacy levels. We also launched the Business Literacy Awards in January during our annual Business Pledge event. The first year awards were nominated by Dame Julia Cleverdon, our outgoing Chair. In 2022 we will develop a formal process for these awards.

Following a series of webinars in June we launched a business literacy recovery coalition as a subgroup of our wider Literacy Business Pledge. A public letter was sent from this group to No.10 calling for a stronger focus on literacy recovery and asking the Government to acknowledge the powerful role of business in this agenda. The then new Secretary of State for Education, Nadhim Zahawi, met the group at a Business and Literacy Recovery Summit we convened in November.

In November an event with the Literacy All-Party Parliamentary Group and the publication of a policy paper, The Future of Primary School Libraries , was used as the platform for the launch of the Primary School Library Alliance, which for the first time has brought together professional bodies, publishers and investors in a united front, to take action on improving the provision of primary school libraries.

Becoming a more diverse and inclusive charity, better at listening to and working with communities

Underpinning all our work is the charity’s commitment to equity, diversity and inclusion (EDI). We know that the more diverse and inclusive we become, the more carefully we listen to the communities we work with and the stronger our partnerships are with them, then the more impact we will have on our mission.

The National Literacy Trust has an annual EDI action plan which is reported on at each board meeting. The CEO chairs the internal EDI working group which leads the agenda and focuses on the interlocking aims of organisational transformation – becoming a more diverse and inclusive charity - and service transformation by getting better at listening to and working in partnership with communities .

The result of this activity has been a stronger visible commitment to equalities and diversity. Our school programmes have supported work in schools to promote diversity and inclusion, raising awareness of ethnically diverse authors through all our reading activities. The primary school library programmes have run training for teachers and librarians in the promotion of diverse literature. Diversity, inclusion and community participation is the focus of the Connecting Stories Hub programmes. A highpoint of 2021/22 was the celebration of Black History Month, in which 40,000 young people in our Hub communities participated.

The principles of co-creation and working with Hub communities and participants in our programmes is now embedded in all our activity. In 2021/22 we focused on the creation of community consultation groups in all our Hub areas. This has been the focus of ACE-funded activities in the past year, the aim being to go beyond consultation and co-create Hub content and strategy with the communities themselves.

OUR TARGETS FOR 2021/22

Work with 4,500 schools to address literacy recovery We worked with 4,863 schools

Provide books for 250,000 children, targeting the 383,000 children who don’t own any books We worked with 743,000 children and distributed 429,275 books and resources

Support 1m young people and families with digital literacy resources 125,890 downloads supporting over 1m children OUR TARGETS FOR 2022/23

We will reach 310,000 children and distribute 200,000 books. We will reach 8,000 early years parents

We will work with 5,200 schools

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We will have 500 Literacy Champions and work in 17 areas.

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 £1,824,264. This comprised an increase in restricted funds of £1,480,406, and an increase in unrestricted funds of £343,858. Overall, the charity's funds increased from £2,929,776 at the beginning of the year to £4,754,040 at the year end, of which £736,368 was in unrestricted funds and £4,017,672 was in restricted funds.

Total income for the year has increased from £7.1m in 2020/21 to £9.1m in 2021/22. Following the initial impact of the coronavirus pandemic in the previous year, we had budgeted to maintain income at the 2020/21 level. However, instead we were able to maximise our income from our existing partnerships and due to the current relevance of our work secure some new major partnerships. We anticipate maintaining our income at this level in 2022/23. We have new bids in place to maintain income, as well as maintaining or growing existing funder relationships.

Total expenditure for the year increased by £0.8m from £6.4m in 2020/21 to £7.2m in 2021/22.

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, the Trustees believe that the National Literacy Trust is in a reasonably balanced position and has a robust income and expenditure strategy in place. Further details on the basis of preparation of the financial statements using the going concern assumption are included in the accounting policies

POLICY ON RESERVES

Total funds at 31 March 2022 were £4,754,040 (2021: £2,929,776). Restricted funds, not available for the general purposes of the charity, were at £4,017,672 (2021: £2,497,117). 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 2022 was £736,368, 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.

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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 relevant fundraising standards have been complied with and no complaints received.

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

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.

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.

This report was approved by the board of Trustees and signed on its behalf on

20 July 2022

Signed Trustee Joanna Prior

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THE NATIONAL LITERACY TRUST CHAIR’S REPORT FOR THE YEAR ENDED 31 MARCH 2022

Chair’s Report

I am immensely proud to have taken on the role of Chair of the National Literacy Trust. For the past seven years Dame Julia Cleverdon has chaired the board and inspired the staff team, leading growth in the impact and scale of the charity’s work. Her leadership provided the focus and confidence which the charity required to face the challenges of supporting literacy during the unprecedented closure of libraries and schools during the pandemic. Millions of children and young people have benefited from the work of the Trust under Julia’s chairing. The board, the staff team and our partners are all deeply grateful for her hard work and commitment to our mission. We look forward to continuing to work with Julia, as she chairs the Trust’s new Business and Literacy Council, leading the national coalition of business leaders committed to raising literacy in the UK.

The challenge the National Literacy Trust now faces is immediate and pressing: The National Literacy Trust’s mission is to address education inequality and this gap, between the poorest and the most affluent, has been exacerbated by the pandemic. We now know that the communities with the lowest levels of literacy have borne the brunt of the pandemic not just in terms of health outcomes but also in the damage it has done to the education and literacy of children.

In the past twelve months the National Literacy Trust has redoubled its commitment to young people in these communities. Working with schools, early years settings, libraries, colleges and prisons the Trust is ensuring that children and learners who lost out most during the pandemic are given the most intensive support in a period of recovery.

I am incredibly grateful for the unstinting support of the National Literacy Trust’s business supporters in working with us to address this challenge. The 2022 Literacy Business Pledge has been signed by a group of 92 businesses, convened by KPMG. As a publisher, I am heartened to see the publishing community sitting at the heart of this coalition. I am particularly excited by the way in which business support for the Primary School Library Alliance is enabling the National Literacy Trust to transform primary school library provision in some of the UK’s poorest communities. Supported by Chase, Burberry and Penguin Random House, the Alliance is providing a powerful and practical resource to support educational recovery.

At the heart of our work are the 14 Literacy Hub communities which have been animated this year by the Connecting Stories programme, generously supported by Arts Council England. Their support has enabled us to inspire thousands of young people to read and write, re-engaging them with literacy activities after the pandemic. Crucially these activities also been designed to support their wellbeing.

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. During the pandemic we were grateful for Her Royal Highness’ online engagement with our work, and in the past few months it has been a joy to welcome our Patron back to face-to-face events.

The staff team at the National Literacy Trust is energised and focused. They are supported by a Board of Trustees who are deeply committed to the charity’s mission. I look forward to the chairing the National Literacy Trust and working with such an extraordinary group of individuals to ensure that young people from even the most disadvantaged communities have the literacy skills they need to fulfil their futures.

Joanna Prior Chair

20 July 2022

Date ……………………………………

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NATIONAL LITERACY TRUST

Opinion

We have audited the financial statements of the National Literacy Trust (the ‘charitable company’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement 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, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities 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 the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern 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 company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and 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 financial statements and our auditor’s report thereon. 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 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.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NATIONAL LITERACY TRUST

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 identified material misstatements in the Directors’ included within the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 11, 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 company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NATIONAL LITERACY TRUST

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, Charities Act 2011, the charitable company’s governing document, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect noncompliances 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 transactions entered into outside the normal course of business, challenging judgments and estimates.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NATIONAL LITERACY TRUST

responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have 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 05-Sep-22 | 11:48 AM BST Date

16

DocuSign Envelope ID: 493291E6-2159-45D5-952B-F55EB696B1DE

THE NATIONAL LITERACY TRUST STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Notes
Income:
Donations and legacies
2 a
Income from charitable activities
2 b
Income from other trading activities
2 c
Other income
2 d
Investment income
Total Income
Expenditure:
Raising funds
3 c
Charitable activitites
3 a-b
Interest payable
Total expenditure
Net Income for the year
Transfer between funds
13
Total funds brought forward
13
Total funds carried forward		 Unrestricted
Restricted
Total Funds
Funds
Funds
2022
2021
£
£
£
£
1,971,744
77,123
2,048,867
1,708,718
881,965
5,754,728
6,636,693
4,851,811
326,021
55,116
381,137
309,507
-
- -
213,472
321 -
321
377
3,180,051
5,886,967
9,067,018
7,083,885
(800,910)
-
(800,910)
(771,457)
(2,031,436)
(4,406,561)
(6,437,997)
(5,604,995)
(3,847)
-
(3,847)
(10,938)
(2,836,193)
(4,406,561)
(7,242,754)
(6,387,390)
343,858
1,480,406
1,824,264
696,495
(40,149)
40,149
-
-
432,659
2,497,117
2,929,776
2,233,281
736,368
4,017,672
4,754,040
2,929,776

17

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THE NATIONAL LITERACY TRUST

BALANCE SHEET AT 31 MARCH 2022

Notes
FIXED ASSETS
Tangible Assets
7
CURRENT ASSETS
Stock
8
Debtors
9
Cash at Bank and in hand
CREDITORS: Amounts falling due within
10
one year
NET CURRENT ASSETS
CREDITORS: Amounts falling due after
more
11
than one year
NET ASSETS
The funds of the charity:
Restricted Funds
13
Unrestricted Funds
13		 £
11,091
921,808
5,010,894		 2022
£
39,036		 £


-
972,558
3,176,446		 2021
£
17,434
39,036




4,813,128
(98,124)		 17,434




3,027,139
(114,797)
5,943,793
(1,130,665)		 4,149,004
(1,121,865)


4,754,040 2,929,776
4,017,672
736,368		 2,497,117
432,659
4,754,040 2,929,776

These accounts are prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements on pages 17-35 were approved by the Trustees and authorised for issue on and signed on their behalf by:

Joanna Prior Chair

Lara White Treasurer

Date

20 July 2022

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DocuSign Envelope ID: 493291E6-2159-45D5-952B-F55EB696B1DE

THE NATIONAL LITERACY TRUST

STATEMENT OF CASHFLOWS
FOR THE YEAR ENDED 31 MARCH 2022
Notes
Cash provided by operating activities
17
Cash flows from investing activities:
Investment income
Purchases of tangible assets
Cash used by investing activities
Cash flows from financing activities:
Interest paid
Cash used by financing activities
Increase in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year
£
321
(30,624)		 2022
£
1,868,598
(30,303)
(3,847)		 £
377
-		 2021
£
1,632,150
377
(10,938)
(3,847) (10,938)
1,834,448
3,176,446		 1,621,589
1,554,857
5,010,894 3,176,446
Analysis of cash and cash equivalents
Cash in hand		 2022
£
5,010,894		 2021
£
3,176,446

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THE NATIONAL LITERACY TRUST

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES

a) Basis of preparation

The financial statements have been prepared in accordance 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 (FRS 102) (effective 1 January 2019) – Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.

The financial statements are presented in sterling, 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 incorporated in England and Wales.

b) Going Concern

The charity’s activities, together with the factors likely to affect its future development, performance and position are set out in the Trustees' Report. Over the last couple of years our work has been impacted by the global pandemic and the need to shift its emphasis. Although the pandemic’s impact is now reducing and we can deliver more face to face the charity is building on the learnings and delivering more as a hybrid model. The economic climate and inflation are still a concern and so although we are predicting growth we still prepare monthly top line forecasts which are reviewed with the CEO and quarterly with the Trustees to ensure that the charity can meet its liabilities. These indicate that the charity can meet its liabilities as they fall due for at least twelve months from the approval of these financial statements. The forecasts have been prepared based on the most up to date information around funder discussions and using detailed workforce analysis to review our costs. On the basis of these forecasts, the Trustees consider that it is appropriate to prepare the accounts on the going concern basis.

c) Fixed Assets

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

d) Income

Income is accounted for on a receivable basis and is reported gross of related expenditure. The specific bases used are as follows:

Voluntary income includes grants and donations from companies, trusts and individuals.

Grants and sponsorships receivable consists of Government Grant Income relating to website development, publications, policy and research and sponsorship of specific projects as well as grants from corporate supporters.

Literacy training courses income is generated from delegate fees charged to attendees of literacy 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.

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THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (Continued)

e) Expenditure is allocated as follows:

Charitable Activities: All expenditure directly relating to the compilation and production of literacy publications, maintenance 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 of support costs.

f) 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 grantmaking body or donor. Transfers between funds are explained in Note 13.

g) 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.

i) Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to sell.

j) 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 statements.

k) Financial instruments

The company 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 when the company becomes party to the contractual provisions of the instrument.

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THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (Continued)

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, 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 receipts 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.

l) Judgements and key sources of estimation uncertainty

In the application of the company’s 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 experience 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 provision for bad debts is estimated based on a review of the recovery of receivables on a line by line basis.

The trustees do not consider any of the judgements or estimations to have any significant effect on the financial statements.

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THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (Continued)

2. INCOME

a. Donations and legacies

a. Donations and legacies
Unrestricted
Restricted		 2022 2021
£ £
Donations from individuals 260,384 27,403 287,787 237,657
Donations from companies 605,154 49,720 654,874 542,690
Donations from charitable trusts 95,260 -
95,260		 175,636
Other donations 1,010,946 - 1,010,946
752,735
1,971,744
77,123		 2,048,867
1,708,718
Income from donations and legacies is unrestricted in 2021.
b. Income from charitable activities Unrestricted
Restricted		 2022 2021
£ £ £ £
Grants and sponsorships receivable 881,965 5,754,728 6,636,693
4,851,811
881,965 5,754,728 6,636,693 4,851,811
Income from charitable activities of £636,754 was unrestricted income in 2021 and the remainder was
restricted income.
Grants of £1,373,364 were received from the government. There are no unfulfilled conditions or other
contingencies attached to these funds.
c. Other trading activities Unrestricted
Restricted		 2022 2021
£ £ £ £
Literacy training 152,353
33,746
186,099
132,578
Online network subscriptions 115,583
-
115,583
131,393
Early Years - Traded -
21,120
21,120
6,036
Skills Academy - Traded 23,520
-
23,520
11,400
Toolkits, Bookbenches & Little Ladybird
Libraries 650
-
650
2,800
Consultancy & advertising 18,915
250
19,165
16,300
Competitions 15,000
-
15,000
-
Internship opportunities - - - 9,000
326,021
55,116		 381,137
309,507

Income from trading activities of £265,236 was unrestricted income in 2021 and the remainder was restricted income.

d. Other income
Furlough income		 Unrestricted
Restricted
2022
2021
£
£
£
£
-
-
-
213,472
-
-
-
213,472

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THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (Continued)

3. EXPENDITURE

a) Analysis of total resources expended
Costs of Raising Funds
Unrestricted Charitable Activities
Website, publications, policy & research
Literacy training & consultancy
Online network
Competitions
Early Years - Traded
Skills Academy - Traded
Hubs Core
North East Campaign
Literacy Communities
Words for Life
My Dear New Friend
Special Charitable Projects
Unrestricted Charitable Activities
Restricted Charitable Activities
Hastings Hub
Nottingham Hub
Swindon Hub
Stoke Hub
Bradford Hub
Peterborough Hub
Middlesbrough Hub
Scarborough Hub
Redcar Hub
Birmingham Hub
Manchester Hub
Story Quest
Nottingham Big Lottery
Peterborough Big Lottery
Black Country Hub
Dundee Hub
Doncaster Hub
Blackpool Hub
Nottingham & Peterborough Big Lottery
Connecting Stories
Suffolk Campaign
Literacy hub - transfer
Books Unlocked
New Chapters
Criminal Justice Employability
Audible Project
Literacy for Learning
Early Years
Love Our Libraries
Young Readers Programme
Premier League Reading Stars
Sport and Literacy
Words for Work
Young Writers Programme
Newswise
Home Learning Environment
Literacy Champions
Cornwall Hub
Gaining Momentum/Oxfordshire Secondaries
Boots Optician School Challenge
Game Changers DCMS 2021
Restricted Charitable Activities
Interest Payable
TOTAL		 Direct
Support
Total
costs
Grants
costs
2022
2021
£
£
£
£
£
Note 16
708,726
-
92,184
800,910
771,457
481,728
-
121,362
603,090
535,339
95,743
-
1,575
97,318
103,017
51,505
-
8,175
59,680
71,505
52,304
-
5,833
58,137
22,888
-
-
-
-
-
12,079
-
1,945
14,024
13,776
130,265
-
1,588
131,853
103,618
35,216
-
1,388
36,604
13,711
84,144
-
12,583
96,727
109,504
40,462
-
10,802
51,264
68,361
3,674
-
-
3,674
5,408
159,596
-
-
159,596
122,331
1,146,716
-
165,251
1,311,967
1,169,458
7,580
-
3,465
11,045
40,700
83,864
-
8,974
92,838
68,842
2,603
-
1,845
4,448
25,433
1,269
-
(100)
1,169
4,947
42,610
-
16,327
58,937
98,082
29,706
-
(100)
29,606
18,724
3,703
-
(100)
3,603
26,240
41,104
-
937
42,041
34,496
1,022
-
-
1,022
7,285
106,394
-
25,548
131,942
72,833
77,366
-
1,109
78,475
64,114
64,484
-
15,940
80,424
168,709
30,043
-
21,934
51,977
74,785
38,462
-
25,713
64,175
75,142
3,184
-
(997)
2,187
35,824
902
-
(997)
(95)
(2,261)
46,758
-
12,872
59,630
71,409
38,904
-
11,122
50,026
118,080
17,713
-
(997)
16,716
64,670
823,165
-
161,575
984,740
209,432
107,679
-
24,257
131,936
9,345
76,200
-
18,686
94,886
(148,147)
42,345
-
4,745
47,090
46,469
39,983
-
5,525
45,508
48,081
24,808
-
7,138
31,946
23,539
31,818
-
3,280
35,098
24,116
206,343
-
55,290
261,633
217,277
311,317
-
37,555
348,872
272,911
472,126
-
35,679
507,805
80,758
461,850
-
55,168
517,018
453,063
102,006
-
16,150
118,156
108,966
130,589
-
17,448
148,037
148,041
190,761
-
33,981
224,742
228,423
198,305
-
28,631
226,936
199,474
16,403
-
9,074
25,477
107,869
399,720
99,633
64,786
564,139
1,337,866
257
-
-
257
-
568
-
(1,994)
(1,426)
-
443
-
-
443
-
200
-
-
200
-
32,371
-
-
32,371
-
4,306,928
99,633
719,469
5,126,030
4,435,537
3,847
-
-
3,847
10,938
6,166,217
99,633
976,904
7,242,754
6,387,390

Support costs of £719,468 (2021: £448,338) included within restricted projects above are included within unrestricted expenditure in the Statement of Financial Activities as they are an allocation of core costs covered by restricted income allocated to core funding.

24

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THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (Continued)

3. EXPENDITURE (continued)

b) Analysis of support costs

Costs of Raising Funds
Unrestricted Charitable Activities
Website, publications, policy & research
Literacy training & consultancy
Online network
Competitions
Skills Academy - Traded
Hubs Core
North East Campaign
Literacy Communities
Words for Life
Unrestricted Charitable Activities
Restricted Charitable Activities
Literacy Hubs
Hastings Hub
Nottingham Hub
Swindon Hub
Stoke Hub
Bradford Hub
Peterborough Hub
Middlesbrough Hub
Scarborough Hub
Redcar Hub
Birmingham Hub
Manchester Hub
Story Quest
Nottingham Big Lottery
Peterborough Big Lottery
Black Country Hub
Dundee Hub
Doncaster Hub
Blackpool Hub
Nottingham & Peterborough Big Lottery
Connecting Stories
Suffolk Campaign
Books Unlocked
New Chapters
Criminal Justice Employability
Audible Project
Literacy for Learning
Early Years
Love Our Libraries
Young Readers Programme
Premier League Reading Stars
Sport and Literacy
Words For Work
Young Writers Programme
Newswise
Home Learning Environment
Cornwall Hub
Restricted Charitable Activities
TOTAL		 Premises
General
Staff
Finance
Information
Office
Technology
2022
2021
£
£
£
£
£
£
£
22,758
12,753
24,339
14,539
17,795
92,184
31,615
26,011
14,576
43,817
16,618
20,340
121,362
70,891
1,661
931
(3,377)
1,061
1,299
1,575
(6,921)
2,907
1,629
(491)
1,857
2,273
8,175
(5,916)
935
524
3,046
597
731
5,833
3,262
312
175
1,015
199
244
1,945
1,585
1,852
1,038
(3,933)
1,183
1,448
1,588
1,134
1,500
841
(3,085)
959
1,173
1,388
(5,738)
2,077
1,164
6,391
1,327
1,624
12,583
10,630
1,731
970
5,642
1,106
1,353
10,802
8,426
38,986
21,848
49,025
24,907
30,485
165,251
77,353
2,994
1,678
9,760
1,913
2,341
18,686
-
571
320
1,762
365
447
3,465
6,860
1,454
815
4,639
929
1,137
8,974
7,817
312
175
915
199
244
1,845
3,221
-
-
(100)
-
-
(100)
(226)
2,648
1,484
8,433
1,692
2,070
16,327
23,329
-
-
(100)
-
-
(100)
(226)
-
-
(100)
-
-
(100)
922
166
93
442
106
130
937
2,359
-
-
-
-
-
-
(226)
4,413
2,473
12,392
2,819
3,451
25,548
14,244
337
189
103
216
264
1,109
(1,782)
2,570
1,440
8,278
1,642
2,010
15,940
23,902
3,531
1,978
11,409
2,255
2,761
21,934
18,157
4,136
2,318
13,383
2,642
3,234
25,713
19,689
-
-
(997)
-
-
(997)
5,973
-
-
(997)
-
-
(997)
(2,261)
2,222
1,245
6,247
1,420
1,738
12,872
14,400
1,942
1,088
5,333
1,241
1,518
11,122
25,315
-
-
(997)
-
-
(997)
(2,261)
27,487
15,403
79,632
17,560
21,493
161,575
19,326
4,526
2,536
10,765
2,891
3,539
24,257
(884)
1,080
605
1,526
690
844
4,745
(809)
917
514
2,791
586
717
5,525
6,730
1,160
650
3,680
741
907
7,138
4,082
685
384
1,237
438
536
3,280
1,416
9,019
5,054
28,403
5,762
7,052
55,290
28,656
7,615
4,267
14,854
4,865
5,954
37,555
10,325
6,036
3,383
17,684
3,856
4,720
35,679
1,033
9,830
5,508
25,863
6,280
7,687
55,168
44,577
2,907
1,629
7,484
1,857
2,273
16,150
9,878
3,115
1,746
8,161
1,990
2,436
17,448
9,148
6,403
3,588
14,892
4,091
5,007
33,981
28,562
5,227
2,929
13,049
3,339
4,087
28,631
26,382
1,454
815
4,739
929
1,137
9,074
21,064
11,978
6,712
29,078
7,652
9,366
64,786
79,646
-
-
(1,994)
-
-
(1,994)
-
126,735
71,019
341,649
80,966
99,100
719,469
448,338
Total
188,479
105,620
415,013
120,412
147,380
976,904
557,306

25

DocuSign Envelope ID: 493291E6-2159-45D5-952B-F55EB696B1DE

THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (Continued)

3. EXPENDITURE (continued)

c) Analysis of costs of raising funds

Direct staff costs
Other direct costs
Support costs
Costs of raising funds was all unrestricted in 2022 and 2021.
4. NET INCOME
Net income for the year is stated after charging:
Auditor's remuneration - audit fees
Auditor's remuneration - non audit fees
Operating leases - equipment
Operating leases - land and buildings
Interest payable
Depreciation
5. STAFF COSTS
Wages and salaries
Social security costs
Pension costs
Training and recruitment		 2022
2021
£
£
626,979
680,103
81,747
59,739
92,184
31,615
800,910
771,457
2022
2021
£
£
20,000
19,200
9,360
-
1,100
1,564
123,760
140,927
3,847
10,938
9,022
7,596
2022
2021
£
£
3,520,732
3,471,325
363,315
352,993
280,603
286,434
108,658
29,073
4,273,308
4,139,825

These costs include redundancy paid in the year of £nil and temporary staff costs of £164,900.

26

DocuSign Envelope ID: 493291E6-2159-45D5-952B-F55EB696B1DE

THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

(Continued)

6. EMPLOYEE AND TRUSTEE INFORMATION

The average number of employees during the year was 112 (2021: 109).

The number of employees who received emoluments in the following ranges was:

£60,001 - £70,000
£70,001 - £80,000
£90,001 - £100,000		 2022
2021
3
3
1
1
1
1
5
5

The Trustees were not entitled to and did not receive any emoluments from the charity during the year (2021: £Nil).

No expenses were reimbursed to the Trustees during the year (2021: no expenses).

The charity received donations of £9,303 from the trustees during the year (2021: £nil)

The charity considers its key management personnel to comprise of Jonathan Douglas and the members of the senior management team. Remuneration, benefits and employer's national insurance contributions recorded in the year by key management personnel were £487,605 (2021: £486,313).

7. TANGIBLE FIXED ASSETS

Cost
At 1 April 2021
Additions
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the Year
At 31 March 2022
Net Book Value
At 31 March 2022
At 31 March 2021
8. STOCK
Where's Wally costumes		 Office
Equipment
Total
£
£
60,027
60,027
30,624
30,624
90,651
90,651
42,593
42,593
9,022
9,022
51,615
51,615
39,036
39,036
17,434
17,434
2022
2021
£
£
11,091
-

27

DocuSign Envelope ID: 493291E6-2159-45D5-952B-F55EB696B1DE

THE NATIONAL LITERACY TRUST

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (Continued)

9. DEBTORS

9. DEBTORS
Other Debtors
Prepayments and Accrued Income		 2022
2021
£
£
539,238
292,436
382,570
680,122
921,808
972,558

Included within Other Debtors is £32,279 (2021 £32,279) relating to rent deposit. This balance is receivable in > 1 year.

10. CREDITORS: Amounts falling due within one year
Trade Creditors
Taxation and Social Security
Other Creditors
Accruals and Deferred Income		 2022
2021
£
£
471,269
463,778
120,627
104,065
57,222
63,905
481,547
490,117
1,130,665
1,121,865

Included within Other Creditors are amounts totalling £33,343 (2021 £24,490) relating to the Section 75 debt on withdrawal from the Pension Trust Scheme, following the reclassification of some to long term liabilities.

Movement in Deferred Income
Brought forward at 1 April 2021
Released during year
Deferred during year
Carried forward at 31 March 2022		 2022
2021
£
£
198,649
118,948
(860,705)
(739,340)
766,385
819,041
104,329
198,649

The deferred income is made up of Online Network Subscriptions income and Literacy Training income for courses which will be take place in the next financial year and deferred programme income.

11. CREDITORS: Amounts falling due after more than one year
Other Creditors		 2022
2021
£
£
98,124
114,797
98,124
114,797

Included within Other Creditors are amounts totalling £98,124 (2021 £114,797) relating to the Section 75 debt on withdrawal from the Pension Trust Scheme, following the reclassification of some from short term liabilities.

12. FUTURE FINANCIAL COMMITMENTS

Operating leases

As at 31 March 2022 the charity had total commitments under non-cancellable operating leases as set out below:

Within one year
Within 2 to 5 years		 2022
2021
£
£
17,883
123,760
-
17,883
17,883
141,643
Land & Buildings		 2022
2021
£
£
1,100
1,100
1,008
2,108
2,108
3,208
Other

28

DocuSign Envelope ID: 493291E6-2159-45D5-952B-F55EB696B1DE

THE NATIONAL LITERACY TRUST

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (Continued)

13. FUNDS

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. Peterborough Big Lottery
16. Black Country Hub
17. Dundee Hub
19. Doncaster Hub
20. Blackpool Hub
21. Nottingham & Peterborough Big Lottery
22. Connecting Stories
23. Suffolk Campaign
24. Books Unlocked
25. New Chapters
26. Criminal Justice Employability
27. Audible Project
28. Literacy For Learning
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
39. Literacy Champions
40. Cornwall Hub
41. Gaining Momentum/Oxfordshire Secondaries
42. Boots Optician School Challenge
43. Game Changers DCMS 2021
44. Rural Hubs
45. Teachers Wellbeing Campaign
UNRESTRICTED FUNDS
General Funds
TOTAL FUNDS		 At
At
01-Apr-21
Income
Expenditure Transfers 31-Mar-22
£
£
£
£
£
148,147
50,453
(76,200)
-
122,400
427
32,373
(7,580)
-
25,220
53,541
74,523
(83,864)
-
44,200
12,908
862
(2,603)
-
11,167
-
1,268
(1,268)
-
-
12,552
110,675
(42,610)
-
80,617
22,454
11,740
(29,706)
-
4,488
7
1,695
(3,703)
2,001
-
63,828
28,757
(41,104)
-
51,481
4,062
-
(1,022)
-
3,040
69,143
117,655
(106,394)
-
80,404
3,638
103,725
(77,366)
-
29,997
4,070
60,414
(64,484)
-
-
10,191
19,852
(30,043)
-
-
(6,903)
45,364
(38,461)
-
-
9,668
-
(3,184)
-
6,484
8,475
8,475
(902)
-
16,048
1,171
45,588
(46,759)
-
-
32,275
48,557
(38,904)
-
41,928
17,715
-
(17,715)
-
-
155,840 1,108,734
(823,166)
-
441,408
(10,229)
289,399
(107,679)
-
171,491
27,041
42,373
(42,345)
-
27,069
35,694
100,868
(39,983)
-
96,579
15,132
24,915
(24,808)
-
15,239
31,435
21,186
(31,818)
-
20,803
263,671
59,422
(206,343)
-
116,750
214,276
358,833
(311,317)
-
261,792
264,256 1,203,316
(472,126)
-
995,446
383,357
487,672
(461,850)
-
409,179
38,646
86,054
(102,006)
-
22,694
19,620
81,089
(130,589)
29,880
-
302,142
194,942
(190,761)
-
306,323
127,461
198,308
(198,305)
-
127,464
11,403
(1,800)
(16,403)
6,800
-
50,004
571,167
(499,353)
-
121,818
100,000
100,000
-
-
200,000
-
-
(257)
257
-
-
-
(568)
568
-
-
-
(443)
443
-
-
-
(200)
200
-
-
99,956
(32,371)
-
67,585
-
35,002
-
-
35,002
-
63,556
-
-
63,556
2,497,118
5,886,968 (4,406,563)
40,149
4,017,672
432,659
3,180,051 (2,836,193)
(40,149)
736,368
2,929,777
9,067,019 (7,242,756)
-
4,754,040

29

DocuSign Envelope ID: 493291E6-2159-45D5-952B-F55EB696B1DE

THE NATIONAL LITERACY TRUST

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (Continued)

13. FUNDS (continued) 2020-21

13. FUNDS (continued) 2020-21
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. Peterborough Big Lottery
16. Black Country Hub
17. Dundee Hub
18. Inspiring Parents
19. Doncaster Hub
20. Blackpool Hub
21. Nottingham & Peterborough Big Lottery
22. Connecting Stories
23. Suffolk Campaign
24. Books Unlocked
25. New Chapters
26. Criminal Justice Employability
27. Audible Project
28. Literacy For Learning
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
UNRESTRICTED FUNDS
General Funds
TOTAL FUNDS		 At
At
01-Apr-20
Income
Expenditure Transfers 31-Mar-21
£
£
£
£
£
-
-
148,147
-
148,147
-
34,267
(33,840)
-
427
41,655
72,911
(61,025)
-
53,541
21,796
13,324
(22,212)
-
12,908
-
2,280
(5,174)
2,894
-
37,854
40,369
(65,671)
-
12,552
23,861
17,543
(18,950)
-
22,454
611
24,714
(25,318)
-
7
55,173
40,792
(32,137)
-
63,828
11,573
-
(7,511)
-
4,062
24,554
103,178
(58,589)
-
69,143
4,140
65,394
(65,896)
-
3,638
401
148,476
(144,807)
-
4,070
22,285
44,534
(56,628)
-
10,191
(4,746)
53,296
(55,453)
-
(6,903)
36,773
2,746
(29,851)
-
9,668
-
8,475
-
-
8,475
-
9,081
(9,081)
-
-
7,944
50,236
(57,009)
-
1,171
46,767
78,273
(92,765)
-
32,275
-
84,646
(66,931)
-
17,715
-
345,946
(190,106)
-
155,840
-
-
(10,229)
-
(10,229)
31,946
42,373
(47,278)
-
27,041
27,566
49,479
(41,351)
-
35,694
11,552
23,037
(19,457)
-
15,132
15,999
38,136
(22,700)
-
31,435
255,356
196,936
(188,621)
-
263,671
156,072
320,790
(262,586)
-
214,276
210,658
133,323
(79,725)
-
264,256
277,860
513,983
(408,486)
-
383,357
44,616
93,118
(99,088)
-
38,646
(378)
158,891
(138,893)
-
19,620
206,360
295,643
(199,861)
-
302,142
116,811
183,742
(173,092)
-
127,461
83,185
15,023
(86,805)
-
11,403
275,099 1,033,124
(1,258,219)
-
50,004
100,000
-
-
-
100,000
2,143,343
4,338,079 (3,987,198)
2,894
2,497,117
89,938
2,745,806 (2,400,191)
(2,894)
432,659
2,233,281
7,083,885 (6,387,389)
-
2,929,776

Included under Restricted Funds are any donations or grants received which are subject to a restriction imposed by the donors to the purpose for which the funds should be spent. The associated expenditure against income is included under restricted funds expenditure. Income which has not yet been expended is carried forward as restricted funds.

£40,149 (2021: £2,894) was transferred from Unrestricted Funds to Middlesbrough Hub, Sport and Literacy, Newswise, Literacy Champions, Cornwall Hub, Gaining Momentum/Oxfordshire Secondaries and Boots Optician School Challenge from general funds expenditure.

30

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THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (Continued)

13. RESTRICTED FUNDS (continued)

Our programmes and their funding sources:

1. Literacy Hubs - funding for cross-hub working.

2. Hastings Hub - a literacy hub established in Hastings.

3. Nottingham Hub - funded by Nottingham City Council and Small Steps Big Changes.

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 - funded by Scarborough Borough Council.

10. Redcar Hub - funded by Public Health NE.

11. Birmingham Hub - funded by Birmingham University.

12. Manchester Hub - funded by Manchester City Council.

14. Nottingham 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 – EY funded hub across the area- funded by ACE

17. Dundee Hub - starting to bring together funders to create a hub in Scotland.

18. Inspiring Parents - engaging with disengaged parents of Year 5 low achieving children to improve 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. Nottingham & Peterborough Big Lottery - funding from Big Lottery to deliver a Doorstep to Digital project during Lockdown.

22. Connecting Stories - a cross hub campaign funded by Arts Council. This project is to promote creative writing and reading for enjoyment across 14 hubs and with the aim of engaging 70,000 people.

23. Suffolk Campaign - a campaign across Suffolk funded by Suffolk County Council.

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 groups.

25. New Chapters - funded by Rothschild Foundation to work in Aylesbury Youth Offending Institute (YOI) to develop a YOI Reading for Pleasure programme.

26. Criminal Justice Employability - a YOI version of Words for Work.

27. Audible Project - inspiring Young Offenders through audible books 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 previous programme.

29. Early Years - training practitioners and volunteers to work with parents 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 (Ipswich Opportunity Area), Glasgow Local Authority, Manchester Local Authority, The Nuffield Foundation and Trusts and Foundations including Dulverton and Mercers. Our Early Years programmes include Early Words Together, Early Words Together@2, HELLO and Everyone Ready for School.

31

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THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (Continued)

13. RESTRICTED FUNDS (continued)

Our programmes and their funding sources (continued):

30. Love Our Libraries - 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 (Puffin World of Stories) JP Morgan Chase ( rewarding futures) Arts Council 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 including British Land, WH Smith Plc, Slaughter & May, Goldman Sachs and Trusts 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 Rugby, we deliver literacy programmes, competitions and events 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 Change), Clarks and Trusts and Foundations. Our Sport and Literacy Programmes include Premier League Primary Stars, Rugby Reading Champions, Skills Academy and Gamechangers – our programmes in Alternative Provision. 34. Words for Work - joining schools and businesses together to give young people from disadvantaged backgrounds authentic opportunities to practise the communication and literacy 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 (Key Stage 1). 35-36. Young Writers Programme and Newswise - providing memorable experiences, a real purpose and audience, access to professional writers and structured writing strategies to inspire and improve students’ writing. Funded by Trusts and Foundations including Alasol, Paul Hamlyn Foundation and Corporates including Audible, Google (via Guardian Foundation), Royal British Legion. Our Young Writers programmes include NewsWise, Young City Poets and IPEEL.

37. Home Learning Environment - funded by the Department for Education to harness the power of businesses and business volunteers to work with disadvantaged families to improve the home learning environment. 38 . Other Restricted Projects - this money has been transferred from Young Readers Programme and Words for Work 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. 39.Literacy Champions – promoting social engagements to improve literacy with disadvantaged communities. 40 . Cornwall Hub – a literacy hub established in Cornwall funded by a private individual

41 . Gaining Momentum/Oxfordshire Secondaries – funded by Oxfordshire County Council to improve attitudes towards literacy and overall academy attainments for pupils in Oxfordshire. 42 . Boots Optician School Challenge – a programme in partnership with Boots Opticians to highlight the importance links between literacy and eye health. 43 . Game Changers – funded by Department for Digital, Culture, Media and Sport to motivate and equip young people to read through special designed programme using relatable texts and highly-scaffolded resources. 44 . Rural Hubs – a new area of work starting with some transition work funded by Dorset Council. 45 . Teachers Wellbeing Campaign – supporting with partner Wesleyan to improve all education professionals’ mental wellbeing.

32

DocuSign Envelope ID: 493291E6-2159-45D5-952B-F55EB696B1DE

THE NATIONAL LITERACY TRUST

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (Continued)

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS
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. Peterborough Big Lottery
16. Black Country Hub
17. Dundee Hub
18. Inspiring Parents
19. Doncaster Hub
20. Blackpool Hub
21. Nottingham & Peterborough Big Lottery
22. Connecting Stories
23. Suffolk Campaign
24. Books Unlocked
25. New Chapters
26. Criminal Justice Employability
27. Audible Project
28. Literacy For Learning
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
39. Literacy Champions
40. Cornwall Hub
41. Gaining Momentum/Oxfordshire Secondaries
42. Boots Optician School Challenge
43. Game Changers DCMS 2021
44. Rural Hubs
45. Teachers Wellbeing Campaign
Unrestricted Funds:		 Net Current
Assets &
Fixed
Assets
Creditors
> 1 Year
2022
Total
£
£
£
-
122,400
122,400
-
25,220
25,220
-
44,200
44,200
-
11,167
11,167
-
-
-
-
80,617
80,617
-
4,488
4,488
-
-
-
-
51,481
51,481
-
3,040
3,040
-
80,404
80,404
-
29,997
29,997
-
-
-
-
-
-
-
-
-
-
6,484
6,484
-
16,048
16,048
-
-
-
-
-
-
-
41,928
41,928
-
-
-
-
441,408
441,408
-
171,491
171,491
-
27,069
27,069
-
96,579
96,579
-
15,239
15,239
-
20,803
20,803
-
116,750
116,750
-
261,792
261,792
-
995,446
995,446
-
409,179
409,179
-
22,694
22,694
-
-
-
-
306,323
306,323
-
127,464
127,464
-
-
-
-
121,818
121,818
-
200,000
200,000
-
-
-
-
-
-
-
-
-
-
-
-
-
67,585
67,585
-
35,002
35,002
-
63,556
63,556
-
4,017,672
4,017,672
39,036
697,332
736,368
39,036
4,715,004
4,754,040

33

DocuSign Envelope ID: 493291E6-2159-45D5-952B-F55EB696B1DE

THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (Continued)

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS
(continued) 2020-21
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. Peterborough Big Lottery
16. Black Country Hub
17. Dundee Hub
18. Inspiring Parents
19. Doncaster Hub
20. Blackpool Hub
21. Nottingham & Peterborough Big Lottery
22. Connecting Stories
23. Suffolk Campaign
24. Books Unlocked
25. New Chapters
26. Criminal Justice Employability
27. Audible Project
28. Literacy For Learning
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
Unrestricted Funds:		 Net Current
Assets &
Fixed
Assets
Creditors
> 1 Year
2021
Total
£
£
£
-
148,147
148,147
-
427
427
-
53,541
53,541
-
12,908
12,908
-
-
-
-
12,552
12,552
-
22,454
22,454
-
7
7
-
63,828
63,828
-
4,062
4,062
-
69,143
69,143
-
3,638
3,638
-
4,070
4,070
-
10,191
10,191
-
(6,903)
(6,903)
-
9,668
9,668
-
8,475
8,475
-
-
-
-
1,171
1,171
-
32,275
32,275
-
17,715
17,715
-
155,840
155,840
-
(10,229)
(10,229)
-
27,041
27,041
-
35,694
35,694
-
15,132
15,132
-
31,435
31,435
-
263,671
263,671
-
214,276
214,276
-
264,256
264,256
-
383,357
383,357
-
38,646
38,646
-
19,620
19,620
-
302,142
302,142
-
127,461
127,461
-
11,403
11,403
-
50,004
50,004
-
100,000
100,000
-
2,497,118
2,497,117
17,434
415,225
432,659
17,434
2,912,343
2,929,776

34

DocuSign Envelope ID: 493291E6-2159-45D5-952B-F55EB696B1DE

THE NATIONAL LITERACY TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (Continued)

15. PENSION COSTS

Employees are offered the opportunity to contribute from 1% of their basic salary. (There is no obligation to make a personal contribution).

The charity contributes 8% of basic salary and Royal London is our pension provider.

16. GRANTS AWARDED

grants
Foundation Years Trust
1
Coast & Vale Community Action
1
Early Years Alliance
1
Institute of Wellbeing
1
4
Number of		 2022
2021
£
grants
£
28,996
1
54,687
28,454
1
53,964
11,361
1
44,611
30,822
1
45,000
99,633
4
198,262
Number of

17. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net movement in funds
Adjustments for:
Depreciation
Investment income
Interest paid
(Increase) / Decrease in stocks
(Increase) / Decrease in debtors
Increase / (Decrease) in creditors
Net cash used in operating activities		 2022
2021
£
£
1,824,264
696,495
9,022
7,596
(321)
(377)
3,847
10,938
(11,091)
8,132
50,750
383,557
(7,873)
525,809
1,868,598
1,632,150

18. FUNDS RECEIVED AS AGENT

The charity has agreed to administer a bank account on behalf of Annington Management Ltd for a campaign to show the benefits of using subtitles in children's television programmes. At the balance sheet date funds of £24,922 (2021: £105,001 in restricted funds) were held in the account. During the year funds of £6,333 (2021: £132,500) were received into the account and £86,411 were paid out (2021: £91,438). An admin fee of £3,000 was received.

35