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← International P.e.n.

2023-12-31-accounts

Company Registration is in England and Wales

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CONTENTS

Page
REPORT OF THE BOARD OF TRUSTEES 3 - 29
Welcome 3 - 4
Objectives and activities 4
Achievements and performance 5 - 15
Plans for the future 15 - 17
Organisational Update 18 - 19
Financial Review 19 - 22
Structure, governance and management 23 - 25
Risk and internal controls 25 - 26
Other matters 27 - 29
STATEMENT OF TRUSTEES
RESPONSIBILITIES		 30
31 - 34
FINANCIAL STATEMENTS
Statement of financial activities 35 - 36
Statement of financial position 37
Cash flow statement 38
Notes to the financial statements 39 - 52
REFERENCE AND ADMINISTRATIVE INFORMATION 53

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REPORT OF THE BOARD OF TRUSTEES 2023

WELCOME

In some periods, history is experienced forward rather than backward. At the present time, the world is going through such serious conflicts that the slightest mistake has the potential to turn the future of humanity into a complete disaster. Therefore, every step that will prevent mistakes is an investment in the future of humanity. Every organization that strives to achieve positive work around the world, from governments to civil organizations, from the United Nations to PEN International, is shaping the history of the future today.

The sense of responsibility places a heavy burden on people and institutions. Although this may seem like a political and social burden, it has an ethical essence. Helping people we don't know and thinking about the future of not only people but also of nature and the entire planet leads us to make an ethical choice. Therefore, concepts such as freedom, justice, and peace are not ordinary political expressions, but values that are at the core of human existence.

What happens in Ukraine, Afghanistan or Gaza, in addition to showing the depth of the suffering there, also shows what remains unspoken, that is, remaining silent in the face of pain and evil, and even defending and supporting them. Mistakes made today leave lessons for future generations to understand. While we continue our work at PEN International, we act with this awareness and, knowing that we are the continuation of the past generations, we strive to pass on their legacy to future generations in the best way possible.

The number of writers we help increases every year, which also shows that the world is becoming a difficult place for writers to live. Improving the lives of writers is one of the ways to improve the world, with this mission we help everyone wherever we can and raise the call for freedom and peace for the whole world. If we succeed in this work, it is thanks to the Board of PEN International at large, our Committee Chairs, all our fellow members around the world and our dedicated staff at the Secretariat.

I express my gratitude, together with fellow Trustees, to our supporters, partners, and volunteers. The work mentioned in this report became possible with their support and significant contributions.

Thank you for your commitment to the ideals of free literature, freedom of expression, and justice around the world by helping PEN International.

Burhan Sonmez, President of International P.E.N.

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REPORT OF THE BOARD OF TRUSTEES 2023

The Trustees of International P.E.N. present their Annual Report and financial statements for the year ended 31 December 2023 under the Charities Act 2011, the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 SORP 15.6) (effective 1 January 2019).

company law

To ensure our reporting of activity and finances over the year is accessible to all, we have produced three documents:

All these documents are available on our website: https://www.pen-international.org/who-we-are

OBJECTIVES AND ACTIVITIES

International P.E.N. (commonly known as PEN International) stands at the intersection of culture and human rights. It is the foremost and largest association of writers. Founded in London in 1921, PEN operates today across five continents through 147 Centres in over 100 countries. It exists to promote friendship, fellowship, and intellectual co-operation among writers everywhere, regardless of their political or other views; to fight for freedom of expression and to defend vigorously writers suffering from persecution by oppressive regimes. It is a forum where writers meet freely to discuss their work; it is also a voice that speaks for writers silenced in their own countries.

PEN International works to promote the PEN Charter to ensure that people everywhere have the freedom to create literature, to impart information and ideas, to express their views, and to access the views, ideas, and literatures of others. We champion the freedom to write, recognizing the power of literature to transform the world. PEN works closely with a range of literary, cultural and free expression organisations to affect change to use stories to open minds and encourage dialogue. Our influence reaches leaders and communities we engage them through creative voices and experience, we unite writers of influence globally to press for a world where writers and freedom of expression for all are fully protected; where languages and literatures are respected and celebrated; and where the free exchange of literatures and ideas build tolerance and understanding within and across borders.

PEN International celebrated its Centenary in 2021 and has long been recognised as a leading international charity and expert on freedom of expression.

PEN International is a non-political organisation which holds Special Consultative Status at the UN and Associate Status at UNESCO.

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REPORT OF THE BOARD OF TRUSTEES 2023

ACHIEVEMENTS AND PERFORMANCE

2023, developed through consultations with the Board of Trustees, staff and the membership. Throughout the year we assessed our impact and learning over the past 4 years and through internal and external consultations with members and beneficiaries, we refined our objectives and strategy for the future. Our approach to change is evolutionary , rather than a radical shift in direction, as we seek to deepen our engagement in promoting our mission - defending freedom of expression for all, promoting literatures and linguistic diversity, and encouraging equity, mutual respect, and tolerance.

As the world hovered on the brink of escalating tensions and conflicts in 2023 the work of PEN International, as outlined in its Charter and put into practice by its members around the world, remains as critical as ever. The year once again witnessed old and new forms of censorship, with the shadow of war looming large in Europe, where the Russian Federation continued its aggression against Ukraine , armed conflicts in subSaharan Africa, including Sudan and the Democratic Republic of Congo (DRC) , and in the Middle East, where the 7 October bloody attack by Hamas on southern Israel deepened a conflict that risked a genocide in Gaza and a spill over into other parts of the MENA region. The impact of that war on freedom of expression also reached to other regions, where, in the context of deeply disturbing news of rising antisemitism and islamophobia needing to be effectively countered, pro-Palestinian protests and commentary were banned or excessively restricted.

Without writers and artists, in all their diversity and languages, the space for effective dialogue between communities and nations withers and shrinks. Without dialogue, there can be no peace. Without peace, culture in its many tangible and intangible forms is at risk and individuals cannot become the best people they can be. Culture is an essential tool to help us address the multiple planetary crises that we all face, and we must ensure that it can flourish, not allow it to be erased.

from solidarity actions to campaigning, from committee activities to community outreach, from research to direct advocacy we clearly see a terrifying, widespread re-emergence of authoritarianism. Never before have basic freedoms been so under threat, the right to free expression so Burhan Sonmez, President of PEN International

PEN International its members and fellow writers across the world continued to speak truth to power, challenging authoritarianism and misinformation, often at great personal risk to themselves, as shown by the 122 individuals documented in our annual Case List 2023/24 - ranging from murder to imprisonment and from banishment to harassment - which often cause writers to flee their countries, putting their ability to tinues through 2024 and beyond to seek an end to these human rights violations, provide and support protection and systems of refuge that can help support writers to continue their essential work, and to seek redress for harms suffered.

people in spite of political or international upheavals as unhampered transmission of thought within each nation and between all nations fosters mutual understanding and ultimately peace. In all circumstances, and particularly in time of war, works of art, the patrimony of humanity at large, should be left untouched by national or political passion.

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IMPROVING THE SITUATION OF WRITERS AT RISK WHO ARE DISPLACED, IMPRISONED OR OTHERWISE PERSECUTED

PEN International mourned the killings of writers, the ultimate form of censorship, with the reported 14 deaths of writers many killed alongside family members - in missile strikes in Gaza a dismal record. As in previous years, it is a particular concern in the Americas region where journalists are often targeted for killing by criminal gangs or their agents who operate as part of the state apparatus, especially in Haiti, Colombia, Mexico, Honduras, and Guatemala , but worryingly we are also seeing ongoing impunity for such killings in Malta and Türkiye .

We have also received extremely disturbing reports of the possibly deliberate targeting of journalists reporting on the war in Gaza and on military attacks in Lebanon by Israel, while PEN Ukraine member, writer and war crimes investigator Victoria Amelina died on 1 July 2023 from injuries sustained in a Russian missile strike in Kramatorsk, eastern Ukraine , on 27 June 2023. PEN International believes it is imperative that the international community lays down a red line regarding the absolute prohibition on attacks on journalists and the media during times of war.

Research and monitoring

Throughout 2023 we continued to monitor and research violations of freedom of expression against writers and creatives across the world. Our research informed advocacy, solidarity actions and enabled the provision of humanitarian assistance including evacuation, relocation and asylum support.

PEN International research and monitoring evidenced in our Annual Case List provides a sobering overview of the persecution of writers and artists globally. Sometimes it is directly in connection with their work, but on others it is related to the exercise of their freedom of expression, often because their writing or other art gives them a public profile. In Iran , writer, journalist, human rights defender, and Nobel Peace Laureate Narges Mohammadi whose unjust prison sentence was increased during the year for her tireless activism from and journalist Marko Vidojkovi left Serbia after receiving death threats, a form of persecution particularly prevalent in Europe and the Americas regions. In June, the sad news reached us of the death from a heart attack in Myanmar of writer, activist, and president of PEN Myanmar Nyi Pu Lay, who had been unable to access adequate medical treatment from his place in hiding where he had taken refuge after the coup of 2021.

Long-term imprisonment and detention without trial of writers continued to top the list of forms of persecution in terms of numbers of writers affected, with the largest numbers of detained or imprisoned writers featured in in Eritrea (12), China (7), Belarus (5) and Cuba (4). The ongoing detention and trial of veteran human rights activist, writer, and newspaper publisher Jimmy Lai in Hong Kong , and the ongoing arbitrary detention of Galal El-Behiry, serving an unjust sentence imposed for his poetry in Egypt, exemplify this trend, while the continued detention of 12 Eritrean writers for over 20 years without information about their fate or current situation is emblematic of record of impunity for human rights violations that the international community must address as a matter of urgency.

As in previous years, and across all regions, governments abused national security legislation to persecute peaceful dissent, including in Bangladesh, Belarus, China, India, Iran, Israel, Morocco, Myanmar, Saudi Arabia, Spain, Türkiye, the United Arab Emirates (UAE), the United Kingdom, and Vietnam . Others in Belarus , and in the Russian Federation , have faced trumped-up criminal charges, while writers in Morocco are serving prison sentences after smear campaigns and conviction of sexual assault based on spurious charges. Alleged Nicaragua and Egypt including in at least one case the father of an Egyptian journalist in an apparent attempt to put pressure on his son to stop his critical reporting.

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Criminal defamation and lèse-majesté laws, which are inherently incompatible with international free expression standards, continued to be used in many countries to harass or silence writers in Italy , as well as in Cuba, Egypt, Iran, Lebanon, Peru , Thailand, Togo and Türkiye, while the Republika Srpska National Assembly in Bosnia and Herzegovina went against the trend for decriminalization by adopting a law recriminalizing defamation. Other writers were judicially harassed with multiple or repeated lawsuits (sometimes called strategic lawsuits against public participation) or onerous restrictions brought by private individuals or government officials for their investigative reporting or commentary on social issues, a phenomenon seen in Azerbaijan, Bangladesh, Belarus, Cuba, Peru, the Philippines, and Türkiye , where, disappointingly, the apparent judicial vendetta against French-Turkish sociologist, feminist, writer, and PEN quitted on four previous occasions.

Online platforms continued to be contested spaces, with many countries including Bangladesh, Cambodia, China, Ethiopia, Gabon, Guinea, India, Israel, Lebanon, Mauritania, Myanmar, Senegal, Sudan, Tanzania, Uganda, Vietnam, and Zimbabwe restricting digital expression, including internet shutdowns in the context of conflict and elections. Cuba introduced a new law in the year to further curtail online criticism and debate while the Democratic Republic of Congo enacted legislation enabling the prosecution of journalists for their work if posted on social media, mirroring legislation in place in Togo that was used to persecute journalists. In Mexico , confirmation of spying on journalists by the Mexican government through the installation of Pegasus spyware on their phones added to concerns about the safety of journalists in that country. Yet as evidenced by #PENsarLibres (ThinkingFree) , our joint campaign with partners to highlight the importance of freedom of expression in Honduras , social media is a crucial space for fighting back against censorship.

PEN noted that severe discrimination against minorities continued in most regions, including in Belarus, China, India, Iran, Myanmar, and Türkiye . Uyghur writers and poets are among the thousands of victims of state repression in China undermine mother tongue education, with a number of writers serving long prison terms for their defence of Tibetan cultural rights.

In Belarus , writer and journalist Andrzej Poczobut, remained held in connection with his work and statements he made in support of the Polish minority in Belarus. In India , anti-caste activists who advocate for the rights of Dalits and other marginalised communities, remained detained pending trial, in poor conditions that continue to raise fears for their health.

Authorities in Iran also continued their crackdown in the wake of widespread protests at the death in custody nd Baluch minorities were executed after pressure.

In Türkiye , since the breakdown of the peace process between the Turkish authorities and the Kurdistan symbols, language, and media outlets. Many Kurdish writers and journalists are languishing behind bars on trumped-up terrorism charges.

In some countries, laws and policies to restrict or repress minority languages, cultures and activities were put in place or intensified. The decades-long policy in Belarus to stigmatize and repress Belarusian language and literature continued apace, with scores of independent publishing houses shut down for promoting books by Belarusian writers and in the Belarusian language. Public LGBTQI -related activity was effectively outlawed in the Russian Federation LGBTQI

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The situation for women writers was particularly severe in Afghanistan, where women and girls, faced restrictions aiming to eliminate them from the public sphere and to deny them access to education, with those challenging the Taliban authorities, including PEN Afghanistan members, subject to arbitrary arrest and detention. As in previous years, the number of women writers on the Case List remains low overall, at around 22 per cent. Yet currently the statistics show that women writers constitute a larger percentage of those on trial or facing forms of judicial harassment, and of forms of harassment including brief detention, threats, and at integrating a more robust gender and diverse lens through our research methodology continue. In doing so, we want to better understand and grasp how different groups are impacted by the same violations differently, and whether groups are targeted using specific violations because of their identities.

Advocacy and Solidarity some good news

" I cannot express how thankful I am for your support. Your unwavering dedication and efforts were instrumental in securing my father's release. It has brought immense joy and relief to our family. I extend my heartfelt gratitude to you and the entire PEN team for standing by us and for advocating for the unjustly detained.

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Emergency humanitarian support

Working closely with PEN Centres, the PEN Emergency Fund (PEF) and partner NGOs, PEN International provided life-saving support to writers and their families, including emergency relocation and the provision of emergency financial aid through a onefe passage, medical assistance and general support towards living expenses. In 2023, the largest number of grants went to assist 22 writers from Afghanistan to leave the country, work supported through a partnership with the Sigrid Rausing Trust, who awarded us a grant in 2022.

The devastating attack on civil society in Nicaragua also placed heavy demand for emergency support, helping 14 writers, many of them members of PEN Nicaragua. The 12 PEF grants to writers from Myanmar also reflect the parlous state of free expression in the country in the wake of the coup and the ongoing censorship in Bangladesh led to a request for support from one writer. In Europe, writers from Türkiye were the most in need (4), but support was also provided to writers from Belarus (2) and Serbia (1). Not surprisingly, writers in Cuba (2), Honduras (2) and Egypt (2), also needed support, while there were also grants to one writer from each of Ethiopia, Guatemala, Haiti, Iraq, Iran, Morocco, Rwanda, Somalia, Sudan and Zimbabwe , reflecting ongoing freedom of expression restrictions in those countries.

The ongoing hostility and persecution of LGBTQI individuals in Nigeria led to support for a non-binary identifying writer from that country. The growing number of writers requesting support requires sustained fundraising to enable PEN International and the Fund to support even more writers in the future.

ADDRESSING STRUCTURAL THREATS AND BARRIERS TO FREEDOM OF EXPRESSION

civic space continued to shrink during the year, with attempts to Hungary and the Republika Srpska (Bosnia and Herzegovina), while in rare piece of good news, an attempt to enact a similar law in Georgia was shelved in the face of mass public protest. In Nicaragua , the attempts to eliminate civil society continued, with further use of methods of banishment of writers and others, and we saw a new type of persecution in the form of p, their birth and other civil records erased, and their property confiscated. PEN Nicaragua members are now almost all living in exile.

PEN has opposed book bans which continue to rise. In countries such as Belarus, as well as in Hong Kong in China , El Salvador, Hungary , the Russian Federation and Türkiye , these were imposed by authorities using national security pretexts to censor political opposition, writing about human rights violations, or discriminatory legislation to undermine the rights of minorities, including LGBTQI individuals. In others, including Brazil and the USA (where there has been a staggering rise in the scale of book bans, including many classic titles from Aristophanes to Alice Walker imposed in schools in some states), discriminatory views, often libraries. We vigorously oppose such bans on literature as they will not only impoverish the education of students but will also entrench discriminatory views that will escalate tensions and pose a security risk to writers whose work is banned, by opening them up to smear campaigns, abuse and potentially physical attack that could put their lives at risk.

Working with PEN Centres and civil society partners PEN International raised awareness of threats to freedom of expression with the United Nations , the Inter-American Commission on Human Rights , the and with national level authorities through submissions

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on China, Cuba, Eritrea, Nicaragua, Nigeria; campaigns, statements & letters concerning violations of Free Expression in the repression of Kurdish language and culture in Türkiye, Ukraine, Belarus, Russia, Afghanistan, Myanmar, China, Egypt, Palestine, Morocco, Bahrain/Eritrea, Rwanda, Uganda, Zimbabwe, Cuba, Nicaragua, Guatemala and Peru.

PEN International Resolutions

(2 Resolutions) Threats to freedom of expression, peace, and stability in Bosnia and Herzegovina, Kosovo, Montenegro, and Serbia and on Criminal defamation and strategic lawsuits against public participation (SLAPPS).

Strategic Lawsuits Against Public Participation (SLAPPs)

PEN International continued to work with the Coalition Against SLAPPs in Europe and the UK anti-SLAPP coalition to tackle SLAPPs across Europe and Central Asia. In November, PEN International urged the EU to adopt a strong anti-SLAPP directive, expressed solidarity with British journalist Carole Cadwalladr , stood with writers and journalists Andrei Soldatov and Irina Borogan , targeted in a SLAPPs case, and expressed concerns about legal actions against the media in Ireland.

Assault on Cultural Expression - Cuba

In July, PEN International in collaboration with PEN America launched Método Cuba: Independent Artists Testimonies Of Forced Exile. The report emerged from our ongoing assessment of cases in which the assault on the right of artistic expression is exceling, following the introduction in 2018 of Decree 349. The decree has meant artists have increasingly faced a spectrum of intersecting rights violations including -- amongst others -- arbitrary arrest, detention, harassment. The report focuses specifically on artists who have been forced into exile, profiling 17 exiled cultural professionals. It scrutinizes their exit from Cuba and the challenges they currently face in exile all while documenting the repressive and sometimes violent tactics by the Cuban state that forced them to flee.

media interest it has generated but more importantly it is the regenerative solution of dialogue and debate that we have been seeking. This can be evidenced through our growing partnerships established through the report and the approaches now being made to PEN by various elements of the UN machinery which signal an intent to collaborate in seeking tangible solutions and generating sustainable advocacy partnerships. Creatives have also used the report in support of their residency permits to evidence the pattern of rampant censorship and as grounds for their exile. Following presentation of the report to the Inter-American Commission on Human Rights, we were approached by the Commission in November, to engage with a range of other civil society organizations to start discussions on a framework for a potential soft law which can be leveraged in relation to artistic expression. The report has subsequently served as a source for the Universal Periodic Review in which PEN International collaborated with sister organisations CADAL, Article 19, Civil Rights Defenders amongst others, to maximize the impact of our UPR.

Our concerns in the report were compounded in the lead up to the report launch when in May 2023, the government in Cuba passed the Law on Social Communication that seek to further close civic space in Cuba and criminalise those who express dissent online in which it has stipulated that the media are "socialist property of the entire people or of political, social and mass organisations, and cannot be the object of any other type of ownership", ultimately undermining any independence of the media, and stymieing criticism of the authorities.

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Promoting Media Freedom in Honduras

In October PEN International in collaboration with the British Embassy in Guatemala, and the Association for Democracy and Human Rights launched a campaign #PENsarLibres raising awareness of the role of journalism in creating healthy societies and functioning democracies, and the role of States in guaranteeing the full exercise of free expression. The key objectives underlying the 10-week campaign focused on generating visibility in relation to the deteriorating freedom of expression landscape and the risks faced by journalists. Partnership with the British Embassy enabled high impact, allowing access with high-level authorities, with news that the ambassador would travel to Honduras and raise awareness of the campaign. This campaign has also been fed into the state led Media Freedom Coalition bringing our concerns to the attention of other states.

Exposing Toxic Narratives in the Western Balkans

In October 2023, PEN International, in collaboration with PEN Bosnia and Herzegovina, PEN Kosovo, the Montenegrin PEN Centre, and Serbian PEN, launched Toxic Narratives a report which highlights how the legacy of regional conflict (which formally ended in 1995) continues to impinge on social cohesion, and is putting freedom of expression under particular duress and subsequently threatening regional stability. The repo for some time suggested that societal and ethnic tensions continue to fester regionally, and writers (which constitute one segment of this expression realm) are also facing increasing restrictions on their expression. In bringing these concerns to the fore, it is clear that communities which have experienced protracted conflict, proactively require tolerant public dialogue to address the root causes of violence as well as strategies and processes of reconciliation to enable a rebuilding of equitable dialogue, trust, peace and long-term stability.

Based on extensive desk research and interviews (with 20 relevant and prominent figures) it details how disinformation campaigns and hate speech are being leveraged as a pathway to discredit writers and journalists (particularly those challenging nationalist and political narratives) and in turn emboldening impunity and subsequently fuelling a rise in physical attacks by non-state actors against these individuals. It also outlines riters are indirectly encouraged to avoid criticism of the authorities in exchange for public funding. Writers are increasingly not reporting threats or physical attacks as trust in the police and the judicial system fails.

Launched in Sarajevo, the report was translated into local languages (with local PEN Centres presenting the report in collaboration with PI). The reports translation has allowed PEN to advocate specifically within the region. In particular, at the launch, the PEN delegation held fruitful discussions with the UK Ambassador to Bosnia and Herzegovina, and representatives of the United Nations, the United Nations Educational, Scientific and Cultural Organization (UNESCO) and the Organization for Security and Co-operation in Europe (OSCE). OSCE representatives notably pledged to include writers in a pilot protection mechanism they were finalizing with the Ministry of the Interior in Bosnia and Herzegovina, which would set up contact points within the police and the judiciary for journalists at risk.

The report was also presented at Frankfurt Book Fair where the discussion was live streamed with the intention of catalysing dialogue and raising awareness about concerns and was attended by regional and international partners, government officials and media. Since its launch, the report has been featured on several platforms and most significantly this includes the Media Freedom Coalition a coalition launched in London by the UK government, with 50 countries to advance media freedom. PEN International has been partner to this initiative and were informed that the Western Balkans report had been featured in its list of relevant materials for its monthly newsletter, which means that all 50 states participating in this initiative received the report. This achievement is particularly significant given that the Coalition only feature 5 outputs per newsletter. PEN International is working to consolidate the awareness raised through the report and continues to lobby relevant bodies on our concerns.

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CREATING NEW SPACES FOR LITERATURE, LANGUAGE, DEBATE, DIALOGUE, IDEAS AND OPINIONS

Working through our Civil Society Programme (CSP), we contribute to a dynamic and informed civil society, by creating spaces for creativity and dialogue, where ideas are shared and challenged and where expression in all its forms can flourish.

outreach on priority areas such as improving literacy for girls and marginalised children. The projects promote writing, reading and critical thinking as essential for a healthy and representative society. We reach marginalised groups with grassroots interventions to improve literacy, protect civic space, defend linguistic and cultural rights, and tackle threats to freedom of expression. These efforts are genuinely cross-national, and built on values of openness, tolerance, and empathy.

PEN provided platforms for debate around pluralism of ideas and perspectives, this included inclusive spaces for minoritized groups particularly women and girls. PEN International supported PEN Centre initiatives through a rigorous application and evaluation process. These projects vary according to local needs, in which our approach is to support project ideas from the ground up, rather than imposing ideas from the top down.

The programme strengthens initiatives, which enhance the participation of women and minorities through campaigns and advocacy, literary events, festivals, and community outreach, educational support programmes, literary and research initiatives. Over the course of 2023 PEN Centres in countries such as Argentina, Belarus, Cambodia, Chile, Ecuador, Honduras, Guatemala, Malawi, Sierra Leone, Sri Lanka, Ukraine, Zimbabwe have focused on themes such as media freedom, cultural memory, promoting and protecting intangible forms of cultural heritage, access to local literatures, creative writing and critical thinking.

The Invisible Child

one profound story, which tackles social invisibility and historic marginalization to different parts of the world and translate it into over eight indigenous languages. In enabling primary and secondary aged school children to critically engage in the Invisible Child, PEN Centres have been employing relevant school-based strategies to unravel how dominant societal discourses and ideologies around gender are reproduced through developing their critical thinking skills by developing empathy and fostering tolerance.

is special because it links several PEN areas, including promoting literature and story-telling, translation and linguistic rights, literacy, freedom of the imagination, identity. It also involves capacitybuilding with grassroots PEN centres, all volunteer-l Jennifer Clement, President Emerita of PEN International

Through facilitation, Centres have been working closely with selected schools, facilitators have been running workshops (average 35 40 children per school) on key themes of marginalization (embodied within the chosen text) and have been engaging them in regular critical reading sessions as well as exploratory creative engagement, to

personal lives. Students have reported that they have found the novelty of exploration of fictional stories in their mother tongues, given the sparse availability of fictional stories in their own languages, as authentically visibilising, self-affirming and generating pride in their own language. Teachers report an increased confidence continuation of this work. Centres involved: Chiapas (Mexico), Malawi, Sierra Leone and Zimbabwe. In early 2023 Afrikaans (South Africa) and Togo joined the project.

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Ukraine

In a new partnership born at the London Bookfair in April 2023, PEN International, English PEN and Book Aid International in collaboration with PEN Ukraine, delivered over 25,000 books to Ukraine for distribution to libraries across the country. A range of multidelivered at the end of November from London to Kyiv. PEN Ukraine will be distributing the books across the country with many being distributed by the Centre to libraries frontline and de-occupied territories.

systematically monitor crimes

against the media, cultural heritage, and cultural figures. PEN Ukraine continues to monitor the human rights situation in occupied Crimea. Sixteen Ukrainian authors ambassadors of the #SolidarityWords project, are spreading the stories of wrongfully imprisoned Crimean journalists, supporting their relatives, exchanging letters, and advocating for their release.

PEN International also regional meeting of PEN Centres in Kyiv. The gathering war against Ukraine. It provided PEN Ukraine with the opportunity to shed light on the situation in Ukraine with PEN colleagues, and to help document human rights violations in the liberated territories.

Equity in Expression

In late 2023, PEN secured support from the Hawthornden Foundation for a collaboration in support of indigenous writing from the literary landscape across Latin America. Working with our indigenous language Centres, PEN Chiapas Multicultural and PEN Quechua, alongside PEN Centres in Argentina, Chile and Guatemala, we seek to support writing from indigenous communities. The project spearheads PEN Equity in Expression, through which we aim to enhance the visibility of

STRENGTHENING THE INSTITUTIONAL CAPACITY AND SUSTAINABILITY OF PEN, SO THAT THE MOVEMENT IS FULLY REPRESENTATIVE AND RELEVANT

PEN Berlin was welcomed as new Centre Eric Lax was re-elected as International Treasurer and Urtzi Urrutikoetxea was re-elected as Translation and Linguistic Rights Committee; Ege Dündar (English PEN) and Elisha July (PEN Zimbabwe) were elected as Members of the Board at Large, and Gerardo Montoya (PEN Argentina) as a member of PEN

Capacity Building and Policy Development

In November 2023, PEN International held a regional CSP capacity building workshop in Manila, Philippines. Hosted by PEN Philippines the three-day training workshop was the first in person meeting since COVID and for the participants was the first time that they were able to meet and exchange in person. It gave Centres the possibility of building trust and regional solidarity, and to identify how to build collaborate on ongoing campaigns and advocacy but also to get more familiar with the diversity of programmatic work being done at the local level. Topics covered included Misinformation, National security, culture wars, hate speech, criminal Bangladesh, Cambodia, Japan, Malaysia, Myanmar, Nepal, Perth, Philippines, and Sri Lanka. We provided campaign training to participating Centres and focused discussions on how Centres could identify the possibilities for ongoing regional engagement (with other PEN Centres) but also with external partners.

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Centres expressed an interest in guidance from the Secretariat on how to better assess partnerships for collaborative project working and what could be done to encourage younger members to join the movement. The final part of

Sexual Harassment policy development

At Congress 2022 the main contours of a draft sexual harassment policy were presented to delegates gaps identified in the policy and how to strengthen it, included:

In creating ownership of a no-tolerance culture of sexual harassment within the PEN movement, we are developing a series of training courses so that members can identify it, name it, and know how to initiate relevant protocols in line with our underlying approach of non-discrimination. Though not definitive, the first training took place as the CSP Manila workshop as a first round of engagement at a global level, with our Centres on how they understand sexual violence and within this, sexual harassment.

Following these workshops, at which we will have two trainers (one from within the region), our Gender lead works closely with Centres to develop tangible guidelines which can be adopted at the local level and are harmonized with acceptable human rights practise. Once this has been established, we intend to see how we can develop the capacities of beacon centres to become ambassadors of the policy and represent it and the work that has been conducted in subsequent Congresses.

Institutionalisation requires generating the necessary movement wide buy-in, visible commitment, and investment in effective prevention initiatives. Our focus continues to be on

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CRITERIA FOR MEASURING SUCCESS

International P.E.N. has a diverse framework for measuring its impact effectiveness. Linked to the organisational log frame, qualitative and quantitative indicators are recorded through tracking tables, case studies, focus groups and questionnaires. These are used to determine the effectiveness and appropriateness of activities. Our approa

work across the organisation by bringing the voices of writers and members working in a variety of contexts challenges, are fed into planning and to strengthen the work going forward.

With PEN Centres participating in our Civil Society Programme, we have sought to build strategic coherency and capacities, we have worked through inclusive and detailed planning (including gender and diversity mapping); cultivating ownership over the work and more broadly strategic outcomes and building the relationship through learning in which our relationship between the Centres and the Secretariat is constantly being reviewed through learning, transformation, and unlearning.

Meaningful feedback and honest analysis is at the core of our system, as is our means of capturing data which harnesses the strength of PEN as an organisation of writers who can tell stories of change. Programmes are subject to external and independent evaluations when required by funders.

PLANS FOR THE FUTURE

International P.E.N. coordinates the activities of PEN Centres across the world in defence of freedom of expression and provides international support, research, policy development and programming to further this aim. The Charity Commission's RR12 declares: "there is an obvious public benefit in promoting human rights. Act 2011 s17(5). For individuals whose human rights are thereby secured, the benefit is immediate and tangible. There is also a less tangible, but nonetheless significant, benefit to the whole community that arises from our perception that the fundamental rights of all members of the community are being protected."

Freedom of expression is a foundational right, on which other rights are dependent. Our response to the evolving nature of threats to this right is driven by external realities. Our barometer of how we need to respond is driven by the writers, our members, and their ability to pursue their creative craft, whilst upholding this creative space for others. However, when it is their immediate safety and right to life that is threatened, we are compelled to prioritize this over all our other work so that we remain relevant and credible as a civil society player. Our constant challenge is to reflect and learn from what we do, strategically revisiting our work to ensure that we are maximizing our limited resources.

social challenges faced globally. Like the previous strategy for 2020 2023, its approach to change is once again evolutionary human-rights based organization lends it agility to endure despite all political transition or upheaval and its role in upholding the right to free expression remains unique to it. Our literary character, which has enabled PEN to remain ahead of the curve on significant issues, continues to sit at the center of our organizational core and our positioning within the broader NGO world.

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REPORT OF THE BOARD OF TRUSTEES 2023

In 2024, we will be updating our core governance practices so that they reflect standard good practice, as well as a governance system that will improve overall communication. With the help of Clifford Chance (our pro bono Lawyers), we are undertaking a Constitutional Review as part of the exercise with Clifford Chance, obligations.

Alongside our strategic vision we have developed a resilience and budget framework and fundraising strategy.

International P.E.N. saw an increase in the number of individuals contributing to its work in the year. While individuals and institutions continue to be our main source of funding to invest in human rights work, income source diversification continues to be critical in the current climate. New Institutional support from the UNESCO-Aschberg program supports a new project under our Civil Society Programme entitled Promotion and Protection of the Right to Write to be jointly implemented by PENs Afrikaans, Malawi, Zambia, Zimbabwe, and Uganda. Centres shall commission literary pieces which will reflect on the role of artists and writers in pushing for social change, and whether the parameters of freedom of expression are adequately able to protect freedom of (artistic) expression.

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REPORT OF THE BOARD OF TRUSTEES 2023

We continue to build relationships and partnerships with stakeholders through a range of activities, including events and attendance at the major international Book Fairs in London and Frankfurt; through research and approaches to prospects; and through our networks. We are assessing the feasibility of attendance at other similar literary and trade events where we could secure face-to-face meetings with individuals and

We are also meeting with cultural and governmental institutions in other countries to access other funding for work on cultural rights, protecting civic spaces, promoting marginalized voices and endangered indigenous languages, and defending freedom of expression through a rights-based approach.

We have successfully established a high-level, global Philanthropic Advisory Board , with the ambition to increase membership during the coming period to reach new contacts and attract new investment over a longer period.

We rely on voluntary donations to deliver our solidarity campaigns and writer-at-risk response work, and therefore seek to expand the unrestricted funding we receive through our Publishers Circle and Writers Circle . We have had meetings and introductions with a range of publishers and writers, have recently won the support of several new publishers and writers, with others making verbal pledges which we are trying to translate into donations soon. We will continue to approach publishers and writers, both existing and new (where the former might be able to increase their current regular support or be advocates for bringing others to join them in their support).

To bolster the Circles networks and income lines, we are also setting up a new Stage & Screen Circle (membership being extended to creatives and cultural agents including studios and production companies, all who have a stake in freedom of expression and the imagination). A major donation from a founding member has already been received. We are also developing an associated Agents Circle, where literary and creative agents would play an ambassadorial role in advocating for PEN with their author clients and publishing contacts, amongst others.

In 2023, we secured new funding from several new trusts and major donors outside the literary field, and we are keen to embed and deepen this work. We will continue to nurture relationships with contacts and make approaches to prospects who have the capacity to make major donations, in some cases through trusts, foundations or companies that they are involved with. We also started some new funding partnerships in the past year and will cultivate these and work on new potential partnerships. We will research newly registered grant-giving trusts too and make applications where there are relevant criteria or broader charitable purposes.

In 2022-23, we also launched our first crowdfunding campaign, which raised £32,000. It was a large target, with unknown pilot outcomes, and we were encouraged to have attracted so much new support. Our plan going forward is to promote more frequent discrete crowd funders through the year, with lower and more achievable targets for specific cases or project elements.

International P.E.N follows a set of six fundraising principles, which we use to guide our fundraising policy and strategy. These principles lay out our commitment to our supporters and members

Our fundraising activity complies with all relevant legislation and regulation, including the UK General Data Protection Regulation and the Privacy and Electronic Communications Regulations 2003. We also comply with the Code of Fundraising Practice.

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REPORT OF THE BOARD OF TRUSTEES 2023

ORGANISATIONAL UPDATE

In September 2023, we undertook an independent salary review including a benchmarking exercise, using established salary surveys, to assess our pay rates. The review validated existing job descriptions, benchmarked against other international organisations with similar roles; reviewed salary bands across functions with a view to establish banded salary ranges where possible; to make recommendations to senior management the expectation is to deal with any short falls on an incremental basis over the coming years.

We operate a pay and reward policy that aims to attract and retain the best talent needed to take forward our ambitious strategic objectives globally. We ensure that all elements of pay are fair and transparent and easily understood by our employees.

International P.E.N. is a Living Wage accredited employer, meaning all our staff and contractors are paid at least the Living Wage. We aim to develop a well-led workforce within the organisation that is structured for good performance and supports continuous improvement and staff well-being.

MOVING PEN INTERNATIONAL OPERATIONS ONLINE

In order to make additional operational savings, the Board in consultation with staff took the decision to take PEN International operations online and to relinquish our office in Central London. Whilst we hope this will be a short-term necessity, the savings have enabled PEN to build its financial resilience.

To keep employees engaged and mitigate isolation of working remotely, we have acquired membership to the Somerset House Exchange which offers co-working and hot desking for organisations and individual working in the arts and cultural sector. Membership has enabled us to convene regular in person meetings to encourage sharing and learning, retain motivation and organisational culture.

Our regular staff meetings which bring colleagues together to discuss strategy are always very well received; staff welcome the connectivity this offers our remote working team and the opportunity for collaboration. Following on from the review of our work, the sharing of challenges is being used to reset priorities and help people create realistic work programmes. Addressing workload and encouraging healthy work boundaries will be fundamental priorities.

We have streamlined HR and operational processes by developing a more integrated IT system, which staff are using. There are several policies we are developing with a training and implementation plan to include Trustees and staff to improve our workplace culture.

reducing our carbon footprint.

We continue to invest in technology improvements to support fully remote working and meetings more effectively with a blend of in-person (if needed) and online participation.

GRANT-MAKING

Grant-making continues to be a core aspect of our charitable work. During the year, majority of our civil society grant activities were done virtually with little travel and few in-person activities. We awarded a total of £121k in grants through our civil society programme (CSP) (2022: £95k). Grants to Europe included £51k to Svenska PEN for the PEN/Opp and Ukraine £30k.

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REPORT OF THE BOARD OF TRUSTEES 2023

Grants-making allocated

by continent:

OUR FINANCE

In order to support our development and growth we continue to review our financial plan to ensure we are growing our income, surpluses and becoming reserve resilient. Following the Board of Trustees approval of our three-year financial strategy in 2021 which ended in 2023, we continue to adopt and transform our financial outlook leading into our new financial strategy.

The fallout of the pandemic, cost of living crisis and the global fundraising challenges continued to create a financial operational risk but with strong scenario planning, we redoubled our focus on effectiveness and efficiency savings across our operations.

As part of the strategy, we have built positive momentum on the below outcomes:

FINANCIAL REVIEW

International P.E.N.'s main sources of income arise from our charitable activities in three main business areas; Advocacy, Freedom of expression and Writers at risk. Income from these areas is made up of a mixture of grants, member dues, circles, and donations. Recognised income for the year was £1,349k (2022: £1,539k). The largest proportion of our income is from SIDA ( Swedish International Development Cooperation Agency )

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REPORT OF THE BOARD OF TRUSTEES 2023

(2023: £722k; 2022: £696k). In addition, we received £627k in grants, donations and earned income (2022: £843k).

Despite the decrease in turnover, after interest charges and investment performance the overall surplus on unrestricted funds for the year was £3k (2022: £6k). Overall, income from fundraising suffered due to the challenging funding landscape. However, dues and circles income continued to experience a study growth in the year. In 2023, we continued to face a challenging investment market, however, our net investment performance resulted in an increase of £3k in the year.

In the year, we incurred centenary expenditure of £2k (2022: £9k) consisting of website cost and book cost of sales. We received £1k income from book sales in the year.

We maintained a stable cash position in the year. We have mitigated some risk to our income-earning activities by implementing a broad business full cost recovery model with diversified income streams.

We anticipate that we will have more unrestricted donations and grant commitments in place to meet the future costs of our programmes and it is not expected that we will have any issues with working capital over the next 12 months as the Trustees have mobilised their efforts with the Philanthropic Advisory Board.

We maintain sufficient reserves to enable us to fulfil the objectives of the organisation. These reserves are held in a combination of both fixed and current assets including an investment portfolio managed on the

RECOGNISED INCOME

International P.E.N. is grateful to its donors for their generous support in assuring its income of £1,349k during (2022: £1,539k), a decrease of 12% over the previous financial year due fundraising underachievement. The unrestricted income in 2023 was £510k, a decrease of 13% on 2022, while the restricted income was £839k a decrease of 12% on 2022.

Other principal restricted funding sources for 2023 include SIDA, the Norwegian Ministry of Foreign Affairs, UNESCO, British Embassy and the Banyan Tree Foundation.

The funds from these donors go towards our research and policy work, civil society projects and the defence of writers at risk.

Our main sources of unrestricted income are the membership dues and the subscriptions to our Circles.

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REPORT OF THE BOARD OF TRUSTEES 2023

Regconised income: January 2023 to December 2023

MEMBER DUES

Membership dues are paid by centres and individuals, the dues contribution of our centres to the work of International P.E.N. is essential commitment of PEN members to support its important work world-wide. At present, the community of PEN, through the dues collected by centres and the publishers, writers and readers circle contributes 19% of the 2024 annual budget of International P.E.N. Centres pay their membership dues on a yearly basis to International P.E.N. according to the numbers within their own membership. Each individual member of PEN pays dues both to the local centre and to International P.E.N.

The contribution of Centre dues is made according to the GDP of the country, according to four categories: £14.40, £10.35, £5.75 and £3.45 (respectively per member per year). These categories are currently under review.

CIRCLES

These are the Publishers, Writers, Readers and Screen Circles. Income from the Circles increased in 2023. The Trustees recognise the need to grow this basis of unrestricted income and have put plans in place within our new three years financial strategy to grow the Circles.

EXPENDITURE

Total expenditure was £1,445k (2022: £1,475k), a decrease of 2%. Expenditure was tightly controlled throughout the year to try to achieve an overall surplus to rebuild reserves and future sustainability.

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REPORT OF THE BOARD OF TRUSTEES 2023

The main items that make up this amount include:

Employment costs remained by far the highest single item, totalling £761k (directly employed staff and consultants).

Expenditure: January 2023 to December 2023

VALUE FOR MONEY

Providing value for money is vital for any charity. Ensuring that we don't compromise on quality while ensuring we get as much as we can for our money, means spending less, spending well and spending wisely. A focus on value for money is an objective that all staff are now aware of. Every role has a requirement to think about the value for all orders they are placing, questioning costs they believe to be too high, and getting multiple quotes for purchases.

By looking at value for money we want to make sure that:

NET SURPLUS

The overall financial result for the year ended 31 December 2023 shows a surplus on unrestricted funds of £3k compared to a surplus of £6k in 2022. In 2024, we will continue to focus on increasing our business resilience, stability and financial sustainability, while also working to rebuild our reserves and manage risks.

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REPORT OF THE BOARD OF TRUSTEES 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

PEN is a charity that was first set up in 1921. Since 2006, the activities of PEN have been undertaken through a charitable company, limited by guarantee. International P.E.N.'s governing document is the PEN Charter and its Constitution; International P.E.N.'s members are the PEN Centres meeting once a year as the

We have a Board of up to 10 Trustees which includes the International President, International Secretary, and the International Treasurer:

financial reports.

The Search Committee of the Assembly of delegates oversees trustee recruitment.

Candidates are provided with a job description and are required to submit in writing a biography and a signed letter of acceptance of nomination, with a statement of intent. The deadline for submission of nominations is 3 months in advance of Congress. Centres eligible to vote must have paid their membership dues to International P.E.N. and each Centre has one vote. The secret ballot is managed and overseen by the Search Committee.

International P.E.N.'s Trustees have been elected at Congress (the annual meeting of the Assembly of Delegates). The responsibilities of the Board of International P.E.N. have been defined by its constitution. Trustees can serve up to two three-year terms of office.

The list of trustees who served during the year and up to the date of approval of the financial statements

has been provided below:

Trustees

Burhan Sonmez, president/chair Iman Humaydan, deputy chair (departed 22 Nov 2023) Ola Larsmo, deputy chair Eric Lax, International Treasurer Regula Venske, International Secretary (departed 29 Nov 2023) Tanya Tuma, Interim International Secretary

Elected Trustees

Beatrice Lamwaka Francis, David Warwick (departed 22 Nov 2023) Jose Gabriel Seisdedos Salil Tripathi Ege Dungar (appointed 22 Nov 2023) Elisha July (appointed 22 Nov 2023)

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REPORT OF THE BOARD OF TRUSTEES 2023

Trustees are not paid.

New Trustees are introduced to PEN with a formal induction programme carried out by the Company Secretary to the Board. We also provide on-going training, based on periodic skill assessments. We have been actively working with our pro bono lawyers (Clifford Chance LLP) to carry out a constitutional and governance review exercise across the organisation. The outcome of the review will enable us to strengthen our membership structure and legal framework. We expect this exercise to be completed in 2024.

The names of all those who are currently Trustees or who served as a trustee during the year to 31 December 2023 are set out above. Further information on our current Trustees is available on our website (https://www.pen-international.org/who-we-are).

The Trustees delegate the day-to-day running of PEN to the Executive Director (ED) and Finance, HR & Administration Director in the respective areas. The works in these area is overseen by three subcommittees of the Board, each one chaired by a Trustee:

As part of our Human resource development and staff remuneration, PEN is committed to ensuring that we pay our staff fairly and in a way that ensures we attract and retain the right skills in order to have the greatest impact in delivering our charitable objectives. Delivery of our charitable vision and purpose is primarily dependent on the performance and efforts of our staff, which is the largest single element of charitable expenditure. We aim to recruit, subject to experience, towards the lower point within a salary band, providing scope to reward for excellence and growth within the role. We do not employ interns without pay. We pay at least the London Living Wage for all our staff and are committed to encouraging our suppliers do the same. PEN evaluates each post against other posts in PEN and market comparators to arrive at salary rates based on a consistent and transparent process, designed to offer a fair pay framework for all salary assessments and decisions. The pay structure has been audited by an external pay review expert and recommendations have already been implemented. All staff confirmed in post are subject to regular performance conversations, at least annually but quarterly is strongly encouraged. As part of our HR review and staff engagement, we have been awarded an Investors In People accreditation indicating a step in the right direction to enhance our workforce.

Our Centres are legal members of our limited company, playing an important legal formal and informal role in our work.

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REPORT OF THE BOARD OF TRUSTEES 2023

PEN Centres are voices for literature and freedom of expression in their respective countries. A full list of - current Centres is available on our website (https://pen international.org/centres) or by request.

International P.E.N. is committed to upholding its organisational culture in line with the seven overarching principles of the Charity Governance Code 2017: Organisational Purpose; Leadership; Integrity; Decision Making and Controls; Board Effectiveness; Diversity; and Openness and Accountability.

The Executive Director manages the office supported by a Senior Management team comprised of Finance, HR and Administration Director.

and programmes, human resources functions and ensuring compliance with Charity Commission guidelines, good governance, budgetary and funding requirements.

KEY MANAGEMENT PERSONNEL

The President, International Secretary and International Treasurer meet confidentially to discuss the performance and achievements of the charity during the year in order to determine suitable remuneration for key management personnel. Their recommendations are then put forward to the Trustees for discussion and approval.

RISK AND INTERNAL CONTROLS

Risk management is an integral part of our governance. We identify and address our key strategic risks in order to mitigate their likelihood and impact. There are two levels to the risk and assurance process. Our strategic risk approach is designed to identify the key risks which could prevent P.E.N. from achieving its strategic objectives. It also identifies the assurance processes which we have in place to mitigate these risks and any outstanding actions around these assurance processes.

We also have considered operational risks which underpin the strategic risk framework, dealing with a greater number of potential risks at a more detailed level.

This continues to be done at a Board and senior staff level by maintaining an organisational Risk Register that identifies the key organisational risks.

The Trustees continue to review the risks facing PEN, the controls in place and the effectiveness of mitigating actions. International P.E.N. has a risk register which records risks and how they are mitigated, including (but not limited to) our income, assets, management, staff, partners and beneficiaries, reputation, financial controls and governance. This risk assessment process identifies the strategies that are already in place to minimise risks, along with any further actions that may be required to mitigate them. The Trustees delegate risk management to the Executive Director and Finance, HR and Administration Director.

PEN has a comprehensive insurance policy, reviewed annually, and currently provided by Aston Lark Insurance. The Trustees consider all aspects of risk and assurance and are supported in this by the work of the Finance and Audit Sub-Committee.

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REPORT OF THE BOARD OF TRUSTEES 2023

The major strategic risks of P.E.N., together with plans and strategies in managing these risks, are shown in the table below.

----- Start of picture text -----
Risk Current mitigating actions
Financial Stability Board take strong lead in fundraising and new fundraising
Funding targets not met. strategy
( delivering the strategy in a way that Continued outreach to publishers to increase membership of
safeguards our financial sustainability ) , Writers and Screenwriters Circles
New funding streams legacy and crowd funding explored
Head of Development to continue pursuing Trusts and Major
Donor fundraising strategy
In discussions with SIDA as we complete funding cycle (end
2023) and prepare for new bid 2024 - 2028
People and Development SMT review of roles and responsibilities, review of Job
Effectiveness of Senior Management Team Descriptions as untenable workloads and weak organisational
(SMT) processes reasons for departures of Directors with support
from INTRAC (International Non-Governmental Organisation
Training and Research Centre)
Consultations with the Union
Board approve process for recruitment and their involvement
Financial Stability Improved disbursement of funds authorisation processes
Mismanagement of disbursed project funds Quarterly skype/zoom calls with Centres on project delivery
to centres and to build centre relationships over time
3 - 6 monthly reporting on projects and auditing
Bribery and corruption policy shared, whistle-blower and
procurement particularly for those involved in Civil Society
programme
Reputational Centre Development strategy for problematic PEN Centres
Reputational damage due to politicisation or Board/SMT take action/missions to engage with Centres
Centres acting contrary to the PEN Charter whose message is out of line with PEN Charter and human
rights norms. Monitoring of Centres -review for closure of
dormancy
Strategy and Operational Delivery Campaigns and advocacy to be more focused and underpinned
Dramatic change in international support for by robust research and strong media campaigns
freedom of expression demotivation and Ensure that individual writers/Centres can advocate on issues
slows the PEN of concern to them both at national and international levels
dialogue and debate needed more than ever role of the
writer as thought leader to counter push of authoritarianism
Build relations with key actors in human rights and culture
fields and allies at the national level
Strategy and Governance Board now taking lead in strategy setting including the process
Effectiveness of International Board and Board positions under 3 year election cycle
Committees At least two in person Board meetings per year
Co-opt members (2) of the Board under review
Operational Delivery Risk assessment in context for each PEN meeting/mission,
Analysis of risk for local PEN Centres including unintended negative effects for staff & local Centres
organizing events prior, during and after the Consultation with Centres & NGO partners prior to PEN
event. Analysis of risk of unintended missions taking into account conflict dynamics
harm/negative effects for local partners of Collaboration with UN bodies in context of meetings in areas
PEN missions (common risk analysis of of concern for freedom of expression
conflict dynamics with other NGOs for
common missions)
----- End of picture text -----

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REPORT OF THE BOARD OF TRUSTEES 2023

OTHER MATTERS

INVESTMENT POLICY

The Trustees commissioned Swissquote as our broker during the year. At present, we have investment of £85k (2022: £82k) held with the company.

At 31 December 2023, the only form of investment held by P.E.N. was funds held with Swissquote in mutual bonds and single securities, included in the accounts within non-current assets.

GOING CONCERN

IDA which ended in December 2023. At the end of 2023, PEN International completed a four-year programme of support from the Swedish International Development Agency (SIDA). During 2023, PEN International maintained strong links with its most significant institutional supporter. The annual review meeting with SIDA was held in January 2024 to the meeting was very positive and feedback from SIDA was very encouraging IDA and PEN International, SIDA recommended a contract extension for 2024 to allow both parties to negotiate for a further long-term agreement from quarter three of 2024. As part of this process, we agreed with SIDA to conduct an internal audit of our processes, controls and systems which was completed in November 2023.

The trustees are confident that sufficient funding will be continued at the same level with SIDA and other funders to support our current level of activities in the future.

As part of the going concern assessment by the Trustees, they have reviewed our financial position and financial forecasts, taking into account the level of reserves and cash, the effects of the pandemic, the costof-living increase and our systems of financial control and risk management.

As a result of this and an ongoing review of operational and staffing costs, the Trustees believe that we are well placed to manage operational, financial and cost of living risks successfully.

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REPORT OF THE BOARD OF TRUSTEES 2023

The Trustees believe that the actions that they have taken are sufficient to mitigate the uncertainty around any reduced level of funding and have therefore prepared the financial statements on a going concern basis as they have a reasonable expectation that P.E.N. will continue in operational existence for the foreseeable future.

TREASURY POLICY

The Trustees set aside available funds from our income to pay for anticipated costs. The Trustees also set aside a small amount each year, when income is strong, to allow for some flexibility in periods of economic downturn. In order to protect our charitable projects from the loss of short-term funding, a target for a and expenditure for project delivery.

Undesignated reserves amounted to £54k as at 31 December 2023. This is below target for the year. However, the shortfall in funds has been built into a strategic financial recovery modelling for the next three years. This policy is reviewed every year.

RESERVES POLICY

Like many other charities P.E.N has a reliance on a small number of income sources. It is important that, however unlikely it may be that these sources all suddenly cease, we plan to hold sufficient reserves to meet our obligations and needs. In this respect, P.E.N remains positive in building resilient reserves that are strong and healthy.

The trustees set aside available funds from our income to pay for anticipated costs and for planned designated activities.

The Trustees recognise the need to hold sufficient reserves to allow protection of core activities in the event of any income shortfalls to implement long-term strategic programmes and enable International P.E.N. to carry out its essential projects.

The policy aims to have sufficient free reserves to enable International P.E.N. to cope with fluctuations and budgeted operating cost expenditure.

Total reserves at 31 December 2023 were £453k (2022: £546k) Restricted reserves held in 2023 were £376k (2022: £471k) and unrestricted reserves were £77k. Of this £23k were designated reserves while the undesignated reserves were £54k (2022: £51k).

The value of net assets in future years is projected to reduce/increase in the light of budgeted

Restricted reserves are those funds that have been received for particular purposes and projects and are shown in detail in note 17.

Even though general fund is low, we are still able to meet our free reserves target level implied by the current reserves policy, which seeks to build reserves up to three months' operating expenditure.

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REPORT OF THE BOARD OF TRUSTEES 2023

The Finance Sub-committee of the board will continue to monitor closely the reserves position with quarterly reviews. This policy is reviewed every year.

FUNDRAISING

Our Head of Development ensures we follow best practice for charitable fundraising, active participation in fundraising regulation and compliance with the most recent codes of conduct. We continue to regularly review our policies and processes to check they are periodically refreshed, in particular with reference to our ongoing major fundraising campaign as part of our centennial.

In particular, P.E.N:

VOLUNTEERS

International P.E.N. is immensely grateful to the volunteers who contribute to our campaigns and

communications work as well supporting our International programmes team with media monitoring on freedom of expression issues. Their skill, time and dedication helps us achieve our goals while offering them an opportunity to learn and gain experience in a field of work that has growing relevance in our world today.

AUDITOR

Our auditor, HW Fisher LLP, has indicated a willingness to continue in office and it is proposed that the firm be re-appointed as auditor for the ensuing year.

DISCLOSURE OF INFORMATION TO AUDITOR

In so far as each of the Trustees is aware:

Signed on behalf of the Trustees

Burhan Sonmez Eric Lax

President Treasurer

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STATEMENT OF TRUSTEES

023

The Trustees (who are also directors of International P.E.N. for the purpose of company law) are responsible for preparing the report of the Board of Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires Trustees to prepare financial statements for each financial year that give a true and fair view of the state of the 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 adequate 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 and regulations made thereunder.

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 and dissemination of the financial statements may differ from legislation in other jurisdictions.

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OPINION

We have audited the financial statements of International P.E.N for the year ended 31 December 2023 which comprise the statement of financial activities, the statement of financial position, the cash flow statement and the 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC ibilities 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 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 annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other

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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.

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 charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the report of the board of 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:

RESPONSIBILTIES OF TRUSTEES

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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

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misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are 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.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of our planning process:

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

33

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees of the charity.

https://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 auditors' report and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the

for the opinions we have formed.

Andrew Rich (Senior Statutory Auditor)

for and behalf of HW Fisher LLP

Chartered Accountants

Statutory Auditor

Acre House

11-15 William Road

London, NW1 3ER

34

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 20 23

Note General Designated Restricted Total Total Total
funds funds funds 2023 2022
£'000 £'000 £'000 £'000 £'000
Income
Income from charitable activities
Donations and legacies 3 332 - - 332
 438
Charitable 4 178 - 839 1,017
 1,101
activities
Total income 510 - 839 1,349 1,539
Expenditure
Expenditure on
Cost of raising funds
Expenditure on fundraising and publicity 3 - - 3
 5
Expenditure on charitable activities
General advocacy and support 5
411		 3 859 1,273
 1,299
Writers in prison 5
93		 1 75 169
 171
Total expenditure on charitable activities 504 4 934 1,442
 1,470
Total expenditure 507 4 934 1,445
 1,475
Net gain / (loss) 23 3 - - 3
 (6)
Total net income/(expenditure) before transfers 6 (4) (95) (93)
 58
Transfers between funds (3) 3 - - -
Net income/(expenditure) after transfers/
Net movement in funds		 3 (1) (95) (93)
 58
Reconciliation of funds
Balances brought forward at 1 January 2023 51 24 471
 546
 488
Balances carried forward at
31 December 2023		 19
54		 23
376		 453
 546

All gains and losses recognised in the year are included on the Statement of Financial Activities.

The accompanying notes form part of these financial statements.

35

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 20 23

Comparative year 31 December 2022

Comparative year
31 December 2022
Note General
Designated
Restricted
Total
funds funds funds 2022
£'000 £'000 £'000 £'000
Income
Income from charitable activities
Donations and legacies 3 438 - - 438
Charitable activities 4 146 - 955 1,101
Total income 584 - 955 1,539
Expenditure
Expenditure on
Cost of raising funds
Expenditure on fundraising and publicity 5 - - 5
Expenditure on charitable activities
General advocacy and support 5 455 4 840 1,299
Writers in prison 5 112 - 59 171
Total expenditure on charitable activities 567 4 899 1,470
Total expenditure 572 4 899 1,475
Net gain / (loss) 23 (6) - - (6)
Total net income/(expenditure) before transfers 6 (4) 56 58
Transfers between funds - - - -
Net income/(expenditure) after transfers/
Net movement in funds		 6 (4) 56 58
Reconciliation of funds
Balances brought forward at 1 January 2022 45 28 415 488
Balances carried forward at 31 December 2022 19 51 24 471 546

36

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023

Note 2023
2022
£'000 £'000
£'000
£'000
Non-current assets
Tangible assets
13a		 10
11
Investment
13b		 85
82
95
93
Current assets
Stock
124		 124
Debtors
14
91		 206
Cash at bank and in hand
255		 235
470 565
Creditors:
amounts fallingdue within oneyear
15
(112)		 (112)
Net current assets 358
453
Total assets less creditors 453
546
The funds of the charity
17,18,19
Unrestricted funds
Other charitable funds 54
51
Designated funds 23
24
77
75
Restricted funds 376
471
453
546

Approved by the Trustees on and signed on their behalf

Eric Lax, Treasurer

Burhan Sonmez, president

05683997 - Company Registration is in England and Wales

37

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023

Note
2023
2022		 Note
2023
2022		 Note
2023
2022		 Note
2023
2022		 Note
2023
2022
£'000 £'000
£'000		 £'000
Net cash generate/(used in)
operating activities
20		 23 (141)
Cash flows from investing activities
Payments to acquire fixed assets
13a
(3)		 (1)
Disposal of Investment
3		 141
Payments to acquire investments
(6)		 (1)
Cash withdrawn from portfolio
3		 9
Net cash (used in)/generated from
investing activities		 (3) 148
Change in cash and cash equivalents in
the reporting period		 20 7
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period		 235
255		 228
235
Comprising:
Cash at bank and in hand: 255 235
255 235

38

NOTES TO THE FINANCIAL STATEMENTS YEAR END 31 DECEMBER 2023

1. ACCOUNTING POLICIES

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006, Charities Act 2011 Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 102 effective 1 January 2019. The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £000. The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

IDA which ended in December 2023. At the end of 2023, PEN International completed a four-year programme of support from the Swedish International Development Agency (SIDA). During 2023, PEN International maintained strong links with its most significant institutional supporter. The annual review meeting with SIDA the meeting was very positive and feedback from SIDA was very encoura between SIDA and PEN International, SIDA recommended a contract extension for 2024 to allow both parties to negotiate for a further long-term agreement from quarter three of 2024. As part of this process, we agreed with SIDA to conduct an internal audit of our processes, controls and systems which was completed in November 2023.

The trustees are confident that sufficient funding will be continued at the same level with SIDA and other funders to support our current level of activities in the future.

As part of the going concern assessment by the Trustees, they have reviewed our financial position and financial forecasts, taking into account the level of reserves and cash, the effects of the pandemic, the cost-of-living increase and our systems of financial control and risk management.

As a result of this and an ongoing review of operational and staffing costs, the Trustees believe that we are well placed to manage operational, financial and cost of living risks successfully.

The Trustees have determined that the actions that they have taken are sufficient to mitigate the uncertainty around any reduced level of funding and have therefore prepared the financial statements on a going concern basis as they have a reasonable expectation that P.E.N. will continue in operational existence for the foreseeable future.

1.3 Critical estimates and judgements

International P.E.N. policies require the Trustees to make difficult, subjective, or complex judgements or estimates.

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The trustees do not believe there to be any judgements or estimates critical to the financial statements.

1.4 Income

Income other than grant income is recognised at the fair value of the consideration received or receivable for goods and services provided. Fair value takes into account settlement discounts allowed on services.

Income from donations and grants is recognised when the Charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably.

The value of services provided by volunteers has not been included in these financial statements. Gifts in kind are included where the sum can be accurately estimated.

Unrestricted income is deferred when this is received and relates to a period following the year end. Restricted income is deferred only when this relates wholly to a future period, as specified by the funder.

39

NOTES TO THE FINANCIAL STATEMENTS YEAR END 31 DECEMBER 2023

1.5 Grants received

Where grants are received for specific purposes they are credited to the restricted funds of International P.E.N. Grants that are awarded for a specific period are recognised in the SOFA in that period.

1.6 Grants payable

Grants payable as cash are accounted for in the period in which they are approved. Grants awarded to centres of International P.E.N. are accounted for upon approval.

1.7 Basis of allocation of support costs

Staff and other support costs are allocated to the various activities of International P.E.N. based upon the direct staff costs involved in delivering direct charitable activities and on the estimated time devoted to the governance of PEN.

1.8 Defined contributions pension scheme

1.9 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the Charity. Designated funds have been allocated to specific projects by the trustees.

Restricted funds are donations where the donor has specified to be solely used for particular or for specific projects being undertaken by the Charity.

1.10 Expenditure and irrecoverable Value Added Tax

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is

probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is

classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Rental costs under operating leases are charged against income on a straight-line basis over the term of the lease.

1.11 Volunteers

International P.E.N. provides volunteering opportunities in a number of its activities. The work performed by the volunteers is well-appreciated and is explained in the Report of the board of trustees. No financial appraisal of the value of volunteering is included within these financial statements .

1.12 Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Asset Category

Office equipment 25% reducing balance Fixtures & Fittings 25% reducing balance Computer Equipment 25% reducing balance

The policy with respect to impairment reviews of fixed assets is that these assets are inspected regularly for any impairment and any defect remedied so as to maintain the current value.

All assets costing more than £500 are capitalised.

40

NOTES TO THE FINANCIAL STATEMENTS YEAR END 31 DECEMBER 2023

1.13 Investment

Investments are stated at market value at the balance sheet date. The SOFA includes the net gains and losses arising on revaluation and disposals throughout the year. Gains and losses on the disposal of investment assets are calculated as the difference between historical and market values.

1.14 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered and provision for bad and doubtful debts.

Prepayments are valued at the amount prepaid net of any trade discounts due.

1.15 Book stock

The centenary book stock is valued at the lower of cost and net realisable value. The book held is recognised as expenditure at the point it is dispatched from PEN International warehouse. Books in transit at the year-end are accounted for as expensed as it is deemed highly probable that they will reach their intended beneficiaries in good condition. Any material damage or loss of stock would be adjusted in the accounts in the following year. There was no damage or loss of stock in transit at year-end 31 December 2023. Provision is made where necessary for obsolete, slow-moving and defective stock in the accounts.

1.16 Cash at bank and in hand

Cash at bank and cash in hand includes cash.

1.17 Creditors and provisions

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.18 Other financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Except for fixed asset investments, basic financial instruments are recognised as the amount payable or receivable when the instrument is first recognised together with any subsequent transaction costs but modified in respect of trade debtors for an assessment of potential bad debt.

1.19 Foreign exchange

Transactions denominated in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All differences are included in net outgoing resources. Where trustees hold restricted funds in foreign currency, gains and losses on foreign exchange are borne by unrestricted funds to maintain restricted gifts at their original value.

1.20 PEN Centres

PEN Centres are not treated as branches of International P.E.N. They are independently governed organisations.

1.21 Restricted funds

Project grants: Grants that are received for specified purposes are credited to a restricted fund. Expenditure that is attributable to such grants is charged directly to the fund in the statement of financial activities.

1.22 Designated funds

Fixed Assets: The balances on the funds represent our fixed asset portfolio. The capital costs of asset that are met from statement of financial activities.

41

NOTES TO THE FINANCIAL STATEMENTS YEAR END 31 DECEMBER 2023

2. LEGAL STATUS OF THE CHARITY

International P.E.N.

registered office is 167, 169 Great Portland St, London W1W 5PF.

42

Total 438
2022 Restricted funds - 2023
2022		 175
276		 157
162		 -
-		 332
438		 2023
2022		 £
£		 -
-		 -
-
Unrestricted funds 438
Total 332
2023 Restricted funds -
Unrestricted funds 332
3. INCOME FROM DONATIONS & LEGACIES Source Donations and legacies Donations to unrestricted funds: Individual contributions PEN centre contributions CJRS grants Donations to restricted funds: Individual contributions

NOTES TO THE FINANCIAL STATEMENTS YEAR END 31 DECEMBER 2023

4. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted
funds
2023
Restricted
funds
2023
Total
funds
2023
Unrestricted
funds
2022
Grants receivable
5
838
843
-
Publishers Circle
139
-
139
108
Writers Circle
30
-
30
38
Readers Circle
4
-
4
-
Centenary
book sales
-
1
1
-
178
839
1,017
146
Analysis of grants receivable:
Norwegian Ministry of Foreign Affairs
SIDA
NED
UNESCO
Fritt Ord Foundation
Sigrid Rausing
Banyan Tree Foundation
Others
. ANALYSIS OF EXPENDITURE RELATING TO GENERAL ADVOCACY AND
Staff costs
Sub-grants to PEN Centres
Other centre development costs
Support costs (note 6)
Centenary
book costs		 Unrestricted
funds
2023
Restricted
funds
2023
Total
funds
2023
Unrestricted
funds
2022
5
838
843
-
139
-
139
108
30
-
30
38
4
-
4
-
-
1
1
-		 Unrestricted
funds
2023
Restricted
funds
2023
Total
funds
2023
Unrestricted
funds
2022
5
838
843
-
139
-
139
108
30
-
30
38
4
-
4
-
-
1
1
-		 Restricted
funds
2022
Total
funds
2022
933
933
-
108
-
38
-
-
22
22
955
1,101
2023
2022
£
£
52
722
15
-
40
696
6
-
-
-
39
15
33
120
38
-
843
933
SUPPORT
2023
2022
£
£
442
121
296
413
448
95
290
457
1
9
178
839
1,017
146
1,273
1,299

5. ANALYSIS OF EXPENDITURE RELATING TO GENERAL ADVOCACY AND SUPPORT

Analysis of expenditure relating to writers in prison

Staff costs
Other costs
Support costs (note 6)		 2023
2022
43
32
94
59
-
112
169
171

Continued overleaf

44

NOTES TO THE FINANCIAL STATEMENTS YEAR END 31 DECEMBER 2023

6. ANALYSIS OF SUPPORT COSTS AND GOVERNANCE COSTS

The Charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Governance costs include payments to the auditor of £28,000 (2022: £33,000) and other financial services of £nil (2022: £4,000).

Having identified its governance costs, the remaining support costs together with the governance costs are all allocated against the charitable activities based on the time spent on those activities.

Support costs
Staff costs
Depreciation
Rent and occupancy
Office supplies and
equipment
Other Costs
Governance costs (see
below)
Governance costs
Staff costs
Audit fees
Other costs
Statutory audit
Non audit service		 General
advocacy
and support
Writers in
prison
Total
General
advocacy
and support
2023
2023
2023
2022
79
22
101
70
3
-
3
4
20
6
26
69
9
2
11
10
72
21
93
86
230
43
273
218		 Writers
in prison
Total
2022
2022
20
90
-
4
20
89
3
13
25
111
44
262
413
94
507
457		 112
569
General
advocacy and
support
Writers in
prison
Total
General
advocacy
and support
2023
2023
2023
2022
148
27
175
133
23
5
28
31
59
11
70
54		 Writers
in prison
Total
2022
2022
27
160
6
37
11
65
44
262
230
43
273
218
2023
2022
28
33
-
-
28
33

7. NET INCOME/(EXPENDITURE) FOR THE YEAR

This is stated after charging:

his is stated after charging:
Operating lease rentals 2023
2022
£
26
95
26
95

45

NOTES TO THE FINANCIAL STATEMENTS YEAR END 31 DECEMBER 2023

8. ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES, AND THE COST OF KEY MANAGEMENT

Wages and salaries
Social security costs
Pension
Number of employees whose emoluments during the year fell between:
£60,000 and £69,999
£70,000 and 89,999
£90,000 and £99,999
£100,000 and £109,999
£110,000 and £119,000		 2023
2022
660
657
69
68
32
32
761
757
2023
2022
-
-
-
-
-
1
1
1
1
-

The key management personnel of the Charity comprise the Trustees, the Executive Director and the Director of Finance, HR and Administration. Remuneration of key management personnel was £222,000 (2022: £208,000).

Trustee Expenses: None of the trustees received any remuneration during the year, but the Trustee Board (two members) were reimbursed a total of £627 (2022: £3,000) travel and subsistence expenses.

The total expenses incurred by the Trustees in the discharge of their duties and paid to third parties was £9,746 (2022: £6,000). However, two Trustees from our board donated £20,000 towards our core activities.

Number of volunteers was 2 (2022: 3). Volunteers assist the finance team and supports congress team.

9. STAFF NUMBERS

The monthly head count was 13 staff (2022: 13) and the average monthly number of full-time equivalent employees (including casual and part time staff) during the year were as follows:

Charitable activities
Fundraising
Governance
Support		 2023
2022
Number
Number
8
1
1
3
10
2
1
-
13
13

10. PENSION AND OTHER POST-RETIREMENT BENEFIT COMMITMENTS

The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund.

Contributions payable by the company for the year 2023
2022
32
32

The expense has been allocated to restricted and unrestricted expenditure on the same basis as wages and salaries.

46

NOTES TO THE FINANCIAL STATEMENTS YEAR END 31 DECEMBER 2023

11. RELATED PARTY TRANSACTIONS

During the year, donations without conditions from Trustees totalled £20,000. At the year end, there were no other disclosable related party transactions.

12. CORPORATION TAX

As a charity, International P.E.N. is exempt from UK tax on income and gains to the extent that these are applied to its charitable objects. No UK tax charges have arisen in the Charity, during the year or the previous year.

13a. TANGIBLE FIXED ASSETS

Cost:
As at 1 January 2023
Additions
Disposals
As at 31 December 2023
Depreciation:
As at 1 January 2023
On disposals
Charge for year
As at 31 December 2023
Net book value
As 31 December 2023
As at 31 December 2022		 Office
Equipment
Fixtures &
Fittings
Computer
Equipment
Total
£,000
£,000
£,000
£,000
20
2
23
45
-
-
3
3
-
-
(1)
(1)
20
2
25
47
18
1
15
34
-
-
-
-
-
-
3
3
18
1
18
37
2
1
7
10
2
1
8
11

All assets are used for charitable purposes.

13b. INVESTMENTS

£,000 Valuation At 1 January 2023 82 Additions 6 Disposal (3) Realised and unrealised gains/losses 3 Movement in cash (3) Net book value As at 31 December 2023 85 As at 31 December 2022 82

47

NOTES TO THE FINANCIAL STATEMENTS YEAR END 31 DECEMBER 2023

International P.E.N. holds investment funds with Swissquote which are mutual funds for bonds and equities. These funds are single securities for bonds in Global and Euromarkets issues but no US domestic issues, with all investments generating daily liquidity.

14. DEBTORS

Trade debtors
Other debtors
Prepayments and accrued income		 2023
2022
9
22
2
23
80
161
91
206

Bad debt provisions are based upon the debtor balances on individual accounts.

There has been no change in the basis of calculation during the year.

15. CREDITORS: AMOUNTS DUE WITHIN ONE YEAR

Trade creditors
Grants awarded
Taxation and social security costs
Other creditors
Accruals and deferred income		 2023
2022
29
13
30
16
24
29
5
14
41
23
112
112

Deferred income at the balance sheet date was £2k which represent PayPal donations received.

16. FINANCIAL INSTRUMENTS

Financial assets measured at fair value through profit and loss 2023
2022
85
82

We are aware that some changes in market trends are likely as a consequence of using a last paid price to value a share. The value of our securities may therefore not correspond to the real value of such securities. The effect of asset inflows and outflows is eliminated by assuming a single investment at the beginning of a period and measuring the profit or loss of market value to the end of that period.

48

NOTES TO THE FINANCIAL STATEMENTS YEAR END 31 DECEMBER 2023

17. ANALYSIS OF RESTRICTED FUNDS

Writers in Prison Committee (WIPC)
Swedish International Development
Cooperation Agency (SIDA)
Centre Development
Norwegian Ministry of Foreign
Affairs (NMFA)
Individual Donation (towards the
following 3 Areas):
(i) *International P.E.N.
Centenary
(ii) Defence of Writers &
Literature
(iii) Strategic Development		 Balance
as at 1
January
2023
Incoming
resources
Resources
expended
Transfers
Unrestricted
Funds
Funds as
at 31
December
2023
£,000
£,000
£,000
£,000
£,000
24
49
(70)
-
3
43
722
(744)
-
21
63
15
(71)
-
7
-
52
(47)
-
5
(65)
1
(2)
-
(66)
203
-
-
-
203
203
-
-
-
203
471
839
(934)
-
376

*This fund is overdrawn as expected in 2023. However, we expect donations received in 2024 to reduce the deficit.

Writers in Prison Committee (WIPC)
Swedish International Development
Cooperation Agency (SIDA)
Centre Development
UNESCO
Norwegian Ministry of Foreign
Affairs (NMFA)
Individual Donation (towards the
following 3 Areas):
(i) International P.E.N.
Centenary
(ii) Defence of Writers &
Literature
(iii) Long Term Reserves		 Balance
as at 1
January
2022
Incoming
resources
Resources
expended
Transfers
Unrestricted
Funds
Funds as
at 31
December
2022
£,000
£,000
£,000
£,000
£,000
12
71
(59)
-
24
46
696
(699)
-
43
9
126
(72)
-
63
7
-
(7)
-
13
40
(53)
-
-
(78)
22
(9)
-
(65)
203
-
-
-
203
203
-
-
-
203
415
955
(899)
-
471

49

NOTES TO THE FINANCIAL STATEMENTS YEAR END 31 DECEMBER 2023

17. ANALYSIS OF FUNDS (Continued)

WIPC - The mobilisation of communication and support in opposition to the infringement of freedom of expression. SIDA - Support for regional programmes for PEN centres and support for capacity and outreach in London. Centre Development - Supporting exchanges mainly between the African and Americas centres.

NMFA - Support for the work of the Writers in Prison Committee in the Middle East, Asia and North Africa.

Individual donation long-term reserves.

18. ANALYSIS OF MOVEMENT IN DESIGNATED FUNDS

Fixed Assets Fund
Donation		 Balance as
at 1 January
2023
Resources
expended
Transfers
Funds as at
31
December
2023
Funds as at
31
December
2022
11
13
(4)
-
3
-
10
13
11
13
24
(4)
3
23
24
Fixed Assets Fund
Donation		 Balance as at 1
January 2022
Resources
expended
Transfers
Funds as at 31
December
2022
15
13
(4)
-
-
-
11
13
28
(4)
-
24

50

NOTES TO THE FINANCIAL STATEMENTS YEAR END 31 DECEMBER 2023

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Investments
Current assets
Creditors of less than one year
Tangible fixed assets
Investments
Current assets
Creditors of less than one year		 Unrestricted
funds
2023
Designated
funds
2023
Restricted
funds
2023
Total
2023
Total
2022
-
10
-
10
11
-
-
85
85
82
86
13
371
470
565
(32)
-
(80)
(112)
(112)		 Unrestricted
funds
2023
Designated
funds
2023
Restricted
funds
2023
Total
2023
Total
2022
-
10
-
10
11
-
-
85
85
82
86
13
371
470
565
(32)
-
(80)
(112)
(112)
54
23
376
453
546
Unrestricted
funds
2022
Designated
funds
2022
Restricted
funds
2022
Total
2022
-
11
-
11
-
-
82
82
108
13
444
565
(57)
-
(55)
(112)
51
24
471
546

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

Net movement in funds
Add back depreciation charge
Decrease/(increase) in stock
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Loss on disposal of fixed asset
Unrealised (gain)/loss on investment
Net cash used in operating activities		 2023
2022
(93)
58
3
4
-
5
115
(10)
-
(210)
1
1
(3)
11
23
(141)

21. ANALYSIS OF CHANGES IN NET DEBT

The charity had no debt during the year.

22. COMMITMENTS UNDER OPERATING LEASES

Within one year - property
Between two and five years - property		 2023
2022
-
21
-
-
-
21

51

NOTES TO THE FINANCIAL STATEMENTS YEAR END 31 DECEMBER 2023

23. NET GAIN / (LOSS)

Currency exchange gain
Realised and unrealised gains/losses on investment		 2023
2022
-
5
3
(11)
3
(6)

52

REFERENCE AND ADMINISTRATIVE INFORMATION

Governance and management

Trustees

Burhan Sonmez, president/chair Iman Humaydan, deputy chair (departed 22 Nov 2023) Ola Larsmo, deputy chair Eric Lax, International Treasurer Regula Venske, International Secretary (departed 29 Nov 2023) Tanya Tuma, Interim International Secretary

Elected Trustees Beatrice Lamwaka Francis, David Warwick (departed 22 Nov 2023) Jose Gabriel Seisdedos Salil Tripathi Ege Dungar (appointed 22 Nov 2023) Elisha July (appointed 22 Nov 2023)

Executive Director

Romana Cacchioli

Company Secretary Emmanuel Asamoah FCCA/MAAT/MBA/MSc Senior Management Team Romana Cacchioli, Executive Director Emmanuel Asamoah FCCA/MAAT/MBA/MSc, Finance, HR & Administration Director

Administrative information

Charity number 1117088 Company number 05683997 - Company Registration is in England and Wales Registered office 167, 169 Great Portland Street, London, W1W 5PF

Independent auditors

HW Fisher LLP Acre House 11-15 William Road London, NW1 3ER

Bankers

HSBC Plc 74 Goswell Road London, EC1V 7DA

Principal solicitors

Bates Wells and Braithwaite 2-6 Cannon Street London EC4M 6YH

Official social media

Website https://pen-international.org/ Facebook /pen-international Twitter @pen-international

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