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The Literacy Pirates Limited
Annual Reports and Financial Statements Reporting Period: 1 Sept 2022 to 31 Aug 2023
Charity registration number: 1145115 Company registration number: 07790039
Reference and Administrative Details
Status
The Literacy Pirates Limited is a charitable company limited by guarantee, incorporated on 28 September 2011 and registered as a charity on 16 December 2011.
Governing Document
The company was established under a memorandum of association, amended by special resolution on 8 December 2017, which established the objects and powers of the charitable company and is governed under its articles of association.
Company registration number Charity registration number Registered Office Principal Office Board of Trustees
07790039
1145115
138 Kingsland High Street, London, E8 2NS
138 Kingsland High Street, London, E8 2NS
Philip Aldis (appointed March 2023) Alon Avner (resigned November 2023) Nicholas Canning (Chair) Melanie Exon Katherine Fennell Emma King Fiona McAuslan Aisha Miller-Dyer Paul Mundy-Castle Erin Northey (retired July 2023) Valentina Okolo (retired Nov 2022) James Westhead
Jude Williams
Chief Executive Jude Williams Telephone 0203 327 1777 Website www.literacypirates.org Email admin@literacypirates.org Bankers Unity Trust Bank Plc PO Box 7193 Planetary Road Willenhall WV1 9DG
Nationwide Building Society Nationwide House Pipers Way Swindon SN38 1NW
Aldermore Bank PLC 1[st] Floor, Block B, Western House Lynch Wood Peterborough PE2 6FZ
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Flagstone Group Ltd 1[st] Floor, Clareville House 26-27 Oxendon Street London SW1Y 4EL Auditors Chariot House Limited Chartered Accountants and Statutory Auditor 44 Grand Parade Brighton BN2 9QA Senior Statutory Auditor Shona Wardrop CA
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Ahoy!
We are pleased to share with you our 2022-23 annual review where we share what has happened over the year at The Literacy Pirates. The report and accounts covers the period 1 Sept 2022 to 31 Aug 2023.
We reflect on what the children attending our programme, we call them Young Pirates, have achieved since Sept 2022 through our in-person and online programmes. Their effort resulted in pride-filled book launches and incredible film premieres, improvements in their reading and writing skills as well as their confidence and perseverance in the classroom.
Report of the Trustees
The Literacy Pirates Board of Trustees [Trustees] present their report and the external auditors report for the period 1 Sept 2022 to 31 Aug 2023.
The reference and administrative information forms part of this report, and the financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice – Charities SORP (2019).
Structure, governance & management
The organisation was established as a charitable company under a memorandum of association, which established the objects and powers of the charitable company and is governed under its articles of association. In accordance with the articles of association, the trustees retire by rotation at the end of their terms of office and are eligible for re-election. The Trustees delegate the day to day management of the charity to the Chief Executive. The Trustees have read and had due regard to the Charity Commission’s public benefit guidance and confirm that the charity’s work meets the requirements.
Organisation
The board of trustees, which can have up to 15 members, administers the charity.
The Articles of Association require that there should be a minimum of 5 and a maximum of 15 trustees. During the year there were 12 trustees (on average).
The Board meets approximately four times a year. All have given their time and advice outside and beyond the board meeting. All new Trustees receive orientation and induction training.
Appointment of Trustees
The directors of the company are also charity trustees for the purposes of charity law. Under the requirements of the Memorandum and Articles of Association, one third of the trustees retire by rotation each year and must be re-elected at the annual general meeting.
The board of trustees has power to appoint a trustee during the year. Any trustee so appointed must be reelected at the subsequent annual general meeting.
Trustee Recruitment
Trustees are recruited on the basis of relevant skills and empathy towards the organisation’s charitable objectives. The organisation uses open recruitment, specialist trustee recruitment databases and social media campaigns to find trustees.
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Trustee Induction and Training
Potential new trustees are invited to attend a board meeting prior to appointment. Following appointment, new trustees undergo orientation to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the board of trustees and decision making processes, the business plan and recent financial performance of the charity. Safeguarding and child protection are also key elements of the induction training. During the orientation they meet key employees and other trustees, and are given an overview of the activities of the charity. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.
Reserves Policy
The Trustees review the charity’s reserves policy annually, to ensure we have reserves to allow for planned growth. The policy is to hold reserves of at least six months of operating expenditure.
Although the Charity reported a deficit for the financial period we have been able to comply with our reserves policy, having free reserves of £654,239 equating to 7.1 months of operating cost cover at the reporting date. (2021-22: £689,660 equating to 9.4 months of operating costs).
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About us
The Literacy Pirates makes a transformative impact on the literacy, confidence and perseverance of children so that they can achieve both at school and in the world beyond. The Literacy Pirates works exclusively with children who are nominated by their schools because they are underachieving at school and have fewer opportunities in their personal lives.
We achieve this by providing a high quality, after school learning programme offering reading and writing practice. We work with children aged 9 to 13 years old; around the transitional years between primary and secondary school.
The programme is devised and led by teachers, supported by adult volunteers giving young people extra personalised attention. It takes place in our specially created pirate-themed fantastical learning environment, in-person and online, that is relentlessly positive. We believe that young people learn best when working towards tangible, published projects; so each term our Young Pirates create high quality published books, films and apps.
Why we are needed
On average children who come to The Literacy Pirates are 1 to 3 years behind in their reading age. This means it is difficult to keep up with their schoolwork. This can lead to disengagement from school and even exclusion. This is especially concerning because we know that reading for pleasure is a primary factor associated with school success, even over socio-economic background (OECD, 2002).
Schools are looking for solutions to lessen the impact for children who have fallen behind and our organisation is able to provide this. Our learning programme focuses on boosting literacy skills, as well as developing the children’s love of reading and cognitive skills, all to help them improve at school.
Ship Building: a three-year strategy
Literacy Pirates has a three strategy that started in Sept 2021. The goals are to increase the number of children we work with, primarily through our online programme, The Virtual Ship. At the same time we have been working to improve the impact of our programmes.
As we finish the second year of our strategy we continue to be challenged by the number of volunteers that we have been able to recruit. This in term limits are ability to grow the number of children we work with, and has an affect on the impact of the programmes. There is a national shortage of volunteers, with numbers of regular volunteers nationally falling year on year since the 2000’s. Volunteer recruitment is our major challenge for the coming year, it is the key to unlocking the potential of our programmes to help many more children.
Below you can read more about how the programme works and our achievements from the last year.
You can see our work in action at www.literacypirates.org
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How the Literacy Pirates’ Learning Programme works
In 2022-23 we worked with 393 Young Pirates, from 27 different schools in Hackney, Haringey, Newham, Lambeth, Barking and Dagenham, and Essex. 246 children attended our in-person programme, 128 online, Virtual Ship and 40 through our programme delivered in two Alternative Provision schools.
We work exclusively with children nominated by their school. Schools are best placed to identify children who are both falling behind in class and have fewer opportunities in their personal circumstances.
In 2022-23 57% of the Young Pirates were in receipt of Pupil Premium Funding, 19% had diagnosed Special Educational Needs and 47% for whom English is an additional language. Our programmes support a number of different groups of children who face barriers to their educational success centred around poverty and disadvantaged, underserved communities. We remain confident that we are working with the right children, at the right time.
Our programme is devised and led by teachers
The programme, in its current format was initially devised in 2014. It is based on ‘Reading for Pleasure’ and ‘redrafting writing’ pedagogies, as well as the principles that a low risk, positive environment gives children the ability to reinvent themselves as successful learners.
The Young Pirates read at each session, working through a set text that challenges them and having time to choose books. The pace of reading is set by them with their adult volunteer. In the second half of the session they undertake writing activities, which over a six-week period, create an extended redrafted piece of writing. We publish these pieces of writing so they can feel proud of their hard work. The content of the programme is drawn from the Young Pirates own experiences and passions. The skills in reading and writing that are taught in school, are practiced at the Literacy Pirates.
Having qualified teachers devising and leading sessions means that they can direct and support each Session and the Young Pirates personally, using their professional judgement. They are also best placed to use the collected data to drive improvement for all the Young Pirates.
121 and small group adult support
Young Pirates are supported during sessions by our Crewmates, adult volunteers. This gives them real time feedback and motivation. The volunteers are trained to help develop the literacy, confidence, and perseverance. Their motivating presence is one of our impact drivers. We had a growing community of trained adults who join sessions on a regular basis and provide one to one or small group support.
We believe it is important that our Young Pirates work with people from a diverse range of backgrounds. We recruit volunteers from the local community and reach others further afield through our partnerships with universities and corporates.
Motivating Published Projects
We publish our Young Pirates’ work as high-quality products, in order to give them tangible outcomes and a sense of accomplishment. We celebrate effort and help foster a confidence and pride in their work. At the end of each term we bring together family and friends at joyous events that showcase the children’s work.
During 2022-23 we proudly published the Young Pirate’s work in books, newspapers, a screening at The Rio Cinema and poster campaigns.
Virtual Ship
Our online digital programme, Virtual Ship, is now an established programme, with a growing number of schools interested to participate. It offers us the opportunity to work with children and communities who would not be able to come to a physical venue and live in more remote areas. We are excited by its unique offer and the exciting potential to reach many more children.
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Alternative Provision
In 2020 we were asked by Haringey Council to pilot our programme with more vulnerable children who had been excluded from school. In the spring and summer terms we worked with the wonderful staff at Commerce House to deliver our programme to eight pupils. The programme was deemed a success – by the pupils and staff who appreciated the extra adult attention and ability to work towards a tangible published project.
Achievements and Impact
Having started our three-year strategy in Sept 2021 we have achieved much of the first year’s plans. We increased our numbers of Young Pirates from 270 to 400. Progress against our strategic goals has been good.
Strategic goal 1 - Increase the impact of the programmes.
The impact has been steady and improvements to the programme ensured the benchmark of 45% of children reaching the 5 months progress in reading over each term was achieved. We have reviewed our Theory of Change this year, and undertaken an external assess of our data measurement tools. This work means we now have an strong dataset to work with and can be even more confident about our impact.
Strategic goal 2 - Increase the number of school partnerships.
Schools have continued to work with us and we have increased demand which we are unable to service until the volunteer numbers increase. See below. Our schools partnership work has been strengthened through better two-way communication, which means we send weekly updates about the students progress and achievements.
Strategic goal 3 - Increase the number of volunteers recruited.
The volunteering sector has been massively diminished by the pandemic, but even before the national picture of volunteering has been declining. We have also suffered. Throughout the year, through good focused work by our Volunteer Team, numbers have steadily increased, building from 200 to 350 over the year. We feel confident that we can continue to grow the numbers, albeit slowly.
Strategic goal 4 - Increasing the funds raised.
The team has been successful with income generation, building great relationships with our supportive funders and achieving income of over £1m, 98% of last year’s level despite a competitive fundraising environment. We continue to invest in the corporate partnerships and major donor programmes which continue to grow.
Strategic goal 5 - Build the organisational capacity.
Ensuring we are a good place to work and recruit and retain excellent staff is critical to our success. We have increased the team size and ensured that there are more ways for staff to progress and take on responsibility. The Board has led on the creation of a staff network and created a Equity, Diversity, and Inclusion Plan which has identified key projects to action for the coming year. As our team has grown our ways of working have developed to enable remote working and good communication from different sites.
Impact Reporting
We are committed to a rigorous and thoughtful approach to monitoring and evaluating the impact our learning programme makes. We stay up to date with best practice to ensure that our learning programme and monitoring and evaluation practices are fit for purpose. We use a mixture of qualitative and quantitative approaches to fully understand the impact.
In 2022-23 we used the following tools:
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Reading age Star Tests using the Accelerated Reader programme, with the addition in the summer term of a post programme test for the Virtual Ship.
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Quantitative surveys with children, parents and teachers investigating progress in each of our core skill areas.
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Briefings with staff and volunteers, before and after Sessions to understand what is working well and what needs adjustment.
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Interviews with children conducted by an external organisations, The Centre for Education and Youth.
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Outcome 1 Reading - Children have improved reading skills and enjoy reading
Young Pirates read with an adult at their weekly sessions. We promote Reading for Pleasure, allowing children to have a choice in what they read and encouraging them to stretch themselves with more challenging texts as much as possible. Volunteers motivate the children to keep reading and check for comprehension.
Young Pirates made an average of 5 months progress each term. 90% of parents & carers saw an improvement in their child’s reading.
“Reading for pleasure improves attainment, wellbeing, empathy, and sparks aspiration. The Literacy Pirates do all this, and more, through their imaginative, playful, and inspiring ‘pirate-ships’ where children’s reading is
championed.” ‘The Charity of Sir Richard Whittington’- The Mercers’ Company
Outcome 2 Writing - Children have improved writing skills and write more.
Young Pirates create a piece of writing across each half-term. Over the six-week period they embark on a cycle of imagining, drafting and redrafting their written work. This process embeds learning and creates a piece of work that took effort. We publish the children's work in tangible projects in order to provide motivation and a sense of achievement.
69% of teachers agreed or strongly agreed that the programme had an impact on the children’s literacy.
“These are children from incredibly challenging
backgrounds... They see themselves as readers and writers
because of The Literacy Pirates.” Sarah Tai, Deputy Headteacher, St John the Baptist Primary School, 2023
Outcome 3 Confidence - Children have increased confidence as learners in the classroom.
We create a safe space for making mistakes and provide tangible challenges to work towards, as well as giving the Young Pirates opportunities to present their work and celebrate their achievements as often as possible. We give children the confidence to ask questions, share their work and try in class, not just at our sessions.
89% of parents and 82% of teachers saw an increase in confidence of the children.
“We were so impressed... His stammer wasn’t so bad so I know he has gained confidence... We’re very proud of how far he has come so quickly.” Parent/Carer of Reggie, aged 9
Outcome 4 Perseverance - Children have increased levels of perseverance, put in more effort and keep going when things are hard.
Academic success is hard work. We create an environment where children can feel successful and understand that success takes perseverance. Using established approaches like modelling, co-construction and guided reflection we help children to develop strategies for thinking about their own learning, or metacognition.
82% of children said they tried harder in class and 89% of parents & carers agreed.
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“I’m proud of everything that I’ve done! These are things I’ve never dreamt of doing. I didn’t think I would be a real author, especially at this age. I’m very excited about what is to come!” Betty, Young Pirate, aged 10
Risk Review
The Board retains a strategic risk register, updated before each board meeting. The major risks to the organisation mirror our priority areas of school and volunteer recruitment and fundraising.
Since the pandemic in 2020 we have been rebuilding our volunteer base, however through changing work habits volunteer numbers across the country have declined. We are pleased that our numbers climb each month but face a reduced market. We are therefore concentrating on universities and corporate partnerships to create larger pools of excellent volunteers.
To address the school funding challenge, as schools continue to cut staffing levels to address shortages, we reduced our fee to £750 (from £3950). This was gratefully received by schools and made the decision to participate much easier, and meant we retained our current schools and been able to add new schools to our waiting list for the current academic year.
The fundraising landscape remains uncertain. While we have been successful in securing income at a level very close to the previous year, we are well aware of the pressures on charitable giving in this economic downturn and with so many other worthwhile charities looking for support. Our investment in the fundraising team means we are able to research and make approaches for more grants and ensure that we maintain beneficial partnerships and relationships with donors.
Future Plans
The Board remains committed to our three-year strategy to test and build the Virtual Ship. We have created a plan to hold steady on our income target and the number of children we work with. The Board of Trustees will during this next year begin a review and drawing up of a new strategy.
Strategic goal 1 - Increase the impact of the programmes.
In the coming year we will better improve our impact and have clarity about the Virtual Ship. We will achieve this by focusing on data collection, reviewing the programme costs, and experimenting with different delivery models for the Virtual Ship.
Strategic goal 2 - Increase the number of school partnerships.
Investment in systems and processes of managing schools will allow us to more rapidly work with more schools, and our investment in two way relationships means we expect to retain all our current schools. We have created a waiting list and as the number of volunteers increases we will bring new schools into our programmes.
Strategic goal 3 - Increase the number of volunteers recruited.
In the coming year we will continue to offer good training and volunteer management in order to double the size of our volunteer base. The challenge has been since the pandemic volunteering across the UK has fallen. We are focusing on building relationships with universities and corporates in order to tap into large pools of great volunteers.
Strategic goal 4 - Increasing the funds raised.
Trusts and foundation grants, corporate partnerships and gifts from individuals make up the largest incomes streams and remain our core focus for the coming year. The target is to secure an increase in the average gift
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size, and the number of multi-year gifts that create a foundation for growth. We have therefore invested in the fundraising team bringing in greater expertise and capacity.
Strategic goal 5 - Build the organisational capacity.
In the next year we will focus on delivering our EDI plan and bring expertise to different aspects of the organisation. This is especially true in the digital aspects, both the technical ability to run an effective online programme and the use of tech in the ways we work together.
Statement of Trustees’ Responsibilities
The Trustees (who are also the directors of The Literacy Pirates Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees are aware:
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there is no relevant audit information of which the charitable company's auditors are unaware; and
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the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Finally…
Thank You. Our thanks go especially to our ever-increasing community of volunteers, school partners and our funders – all of whom are the driving force that enables us to deliver our programme and impact.
Thank You for joining us in our adventures in learning.
A salute to you all!
Nick Canning
------------------------------------Nick Canning, Chair of Trustees
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Report of the Independent Auditor to the Members of The Literacy Pirates Limited
Opinion
We have audited the financial statements of The Literacy Pirates Limited (the 'charitable company') for the year ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31st August 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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Report of the Independent Auditor to the Members of The Literacy Pirates Limited
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Report of the Trustees has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the Trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
Responsibilities of Trustees
As explained more fully in the Statement of Trustees' Responsibilities, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Our responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the charitable company and the industry in which it operates, and considered the risk of acts by the charitable company that were contrary to applicable laws and regulations, including fraud. We identified that the following laws and regulations are central to the charitable company:
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Companies Act 2006
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Charities Act 2011
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Charities SORP 2019
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Health & safety regulations
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Report of the Independent Auditor to the Members of The Literacy Pirates Limited
We did not find any instances of non-compliance or breaches of the legislation framework applicable to the charitable company.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We identified that the following areas were of high risk:
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Completeness of income. We performed various audit tests to ensure that income was not materially understated in the financial statements.
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Management override of controls. We performed various audit tests to ensure there was no material management override of controls
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation, Charities Act 2011 and Charities SORP 2019. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel when considered necessary. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of management bias by the directors that represented a risk of material misstatement due to fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Chariot House
Shona Wardrop CA (Senior Statutory Auditor) for and on behalf of Chariot House Limited Chartered Accountants and Statutory Auditor 44 Grand Parade Brighton BN2 9QA
Date: 17[th] May 2024
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The Literacy Pirates Limited
Statement of Financial Activities (Including Income and Expenditure Account) For the financial year ended 31st August 2023
| Note Income Donations & legacies 2 Charitable activities 3 Investment income 4 Trading income 5 Other income 6 Total Income Expenditure |
Restricted 2022-23 £ 440,135 - - - 6,025 446,160 |
Unrestricted 2022-23 £ 462,109 105,843 17,100 16,465 220 601,737 |
Total 2022-23 £ 902,244 105,843 17,100 16,465 6,245 1,047,897 |
Total 2021-22 £ 1,000,939 46,184 1,705 18,863 300 1,067,991 |
|---|---|---|---|---|
| Raising funds 7 |
3,326 | 205,649 | 208,975 | 147,059 |
| Charitable activities 8 Total Expenditure Net Income/(Expense) Transfers Between Funds Net Movement Between Funds Total Funds Brought Forward Total Funds Carried Forward |
468,844 472,170 (26,010) 3,525 (22,485) 201,594 179,109 |
426,433 632,082 (30,345) (3,525) (33,870) 705,431 671,561 |
895,277 1,104,252 (56,355) - (56,355) 907,025 850,670 |
734,354 881,413 |
| 186,578 - 186,578 720,447 907,025 |
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The Literacy Plrates Llmlted Balance Sheet As at 31st August 2023 Company Registration Number.. 7790039 Note 2022-23 2021-22 Fixed A$set$ Tangible Fixed Assets 13 17.322 15.771 17,322 IS,771 CurrentAsset$ Debtors Cash at bank and in hand 64,130 856,533 60,568 953,626 920,663 1,014,194 Creditors.. amountsfalling due within one year 15 187.3151 1122.9401 Net Current Assets 833,348 891.254 Totsl Assets less Current Llabilitles 850,670 907,025 The Funds of the Charity Restricted fund5 DesSgnated funds Unrestricted funds 18 179.109 17,322 654.239 201.594 15,771 689.660 19 19 Total Charity Funds 850,670 907,025 These financial statements have been prepared in accordance with the provisions applicable to charitable Companie5 subject to the small cornpanie5 regime. The financSal statements were approved bythe Board of Trustees and authorlsed for Issue on 10th May 2024. and were signed on its behalf by.. Nick Cannin& Chair. Date: 1.5th MHY 16
The Literacy Pirates Limited Statement of Cash Flows For the financial year ended 31st August 2023
| Note | 2022-23 | 2021-22 | |
|---|---|---|---|
| £ | £ | ||
| Cash flows from operating activities | |||
| Net cash flow from operating activities | 20 | (101,398) | 210,672 |
| Cash flows from investing activities: | |||
| Purchase of tangible fixed assets | (12,795) | (6,194) | |
| Interest income | 17,100 | 1,705 | |
| Net cash flow from investing activities: | 4,305 | (4,489) | |
| Net increase/(decrease) in cash and cash | |||
| equivalents in the period | (97,093) | 206,183 | |
| Net cash and cash equivalents at the start of the period | 953,626 | 747,443 | |
| Net cash and cash equivalents at the end of the period | 856,533 | 953,626 | |
| Cash and cash equivalents are made up of cash held at the bank, in hand, and in deposit accounts only. | |||
| These comprised of: | |||
| 2022-23 | 2021-22 | ||
| £ | £ | ||
| Cash in hand | 106 | 215 | |
| Cash at bank | 262,710 | 743,411 | |
| Cash on short term deposit | 593,717 | 210,000 | |
| 856,533 | 953,626 |
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The Literacy Pirates Limited Notes to the Financial Statements For the Period Ending 31[st] August 2023
The charity is a company limited by guarantee incorporated in England and Wales. The registered office is 138 Kingsland High Street, London, E8 2NS.
1) Accounting Policies
Accounting convention
These accounts have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102 (effective 1 January 2019) – (Charities SORP (FRS102)), and the Companies Act 2006.
The Charity is a Public Benefit Entity as defined by FRS 102.
The accounts are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been drawn up for a 12 month period from the 1[st] September 2022 to the 31[st] August 2023. The comparative financial statements, described as “2021-22” in the notes to the financial statements, cover the period 1[st] September 2021 to 31[st] August 2022.
The accounts have been prepared under the historic cost convention, unless otherwise stated in the accounting policies.
Assessment of going concern
The Charity recorded a deficit of £56,355 in the financial period and held net cash of £856,533 and free reserves of £654,239 at the balance sheet date.
At the time of approving the financial statements, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. In reaching this opinion, the trustees have considered forward budgets and cash flow forecasts. The trustees continue to adopt the going concern basis in accounting in preparation of financial statements.
Fund accounting
Unrestricted funds are general funds that are available for use at the trustees’ discretion in furtherance of the objective of the charity.
Designated funds are funds established by the trustees from time to time for specific projects or purposes, are not in any way restricted and any surplus or deficit will be transferred to/from the general purposes fund when the designated fund is closed. The value of fixed tangible assets, net of depreciation, is included under designated funds as this value is considered unavailable for general purposes.
Restricted funds are those donated for use in particular area of specific purposes, the use of which is restricted to that area or purpose.
Income
Incoming resources are accounted for as soon Literacy Pirates has entitlement to the income and there is both probability of receipt and the amount is measurable.
Cash donations are recognised on receipt. Other donations are recognised once the company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income from school referral partners is deferred across the duration of the academic terms for which they have paid.
Grant income is recognised in full in the year in which it is receivable, unless there are specific performance related conditions that prevent its recognition. Where performance conditions apply, grant income is deferred until those conditions are met.
Expenditure
18
The Literacy Pirates Limited Notes to the Financial Statements For the Period Ending 31[st] August 2023
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. Expenditure is accounted for on an accruals basis and has been classified under headings in the SOFA in the aggregate of all costs related to that category.
Cost of raising funds relate to those specific costs incurred in organising and staging fundraising events and seeking voluntary contributions, together with employment costs of fundraising staff.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
Governance costs comprise those costs associated with meeting the constitutional and strategic requirements of the charity and the audit fees and costs linked to strategic management of the charity.
Volunteers
The Charity benefits from the contribution of many volunteers who give their time. In accordance with guidance in the Charities SORP FRS 102, no monetary value is included in the accounts for an equivalent time cost given by volunteers.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible within 100 days to a known amount of cash and are subject to an insignificant risk of change in value.
Tangible Fixed Assets
Tangible fixed assets costing £1,000 or more including irrecoverable VAT and incidental installation costs are capitalised, where they meet the definition of fixed assets according to the relevant financial standards in force. Tangible fixed assets are stated at cost net of depreciation charged to date. Depreciation is charged on a straight line basis to the following standards:
Leasehold Improvements 20% / 5 Years, or the duration of the lease whichever the shorter IT Equipment 33% / 3 Years
Tangible fixed assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.
Investment policy and objectives
The Charity’s risk appetite for financial investments is low to medium. Investments in bank savings-based products must be (a) regulated under the jurisdiction of the UK and (b) underwritten by the FSCS or other government guarantee.
Fixed term deposits may only be placed where they do not place a risk on the Charity’s abilities to pay its obligations on time. At a minimum, the Charity must keep £250,000 available from a combination of the current bank account and immediately liquid investments. Fixed term deposits may only be placed for a maximum of 12 months.
Investing with social-purpose providers is favoured, however risk appetite takes precedent above ethical factors.
The Charity’s policy for investment returns on rented property is to achieve fair market rates on all short and long-term sub-letting, within the parameters allowed by the head lease.
The Charity will not invest in trading subsidiaries or joint ventures unless the Board of Trustees has considered and approved a viable business plan.
The Director of Finance is responsible for the day to day management of the charity's investments. Investment performance is monitored and reported to the Finance, Audit and Risk Committee.
19
The Literacy Pirates Limited Notes to the Financial Statements For the Period Ending 31[st] August 2023
Investments are stated at market value, with realised and unrealised profits charged net to the statement of financial activities.
Financial instruments
The charity has only financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and are subsequently measured at their settlement value with the exception of bank loans which are measured at amortised cost using the effective interest method.
Financial Assets
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any discounts due.
Financial Liabilities
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 discounts due.
Operating leases
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight-line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expenses when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Defined contribution pension scheme
The Charity operates a defined contribution pension scheme that is compliant with Auto-Enrolment legislation. The defined contribution pension scheme costs charged in the statement of financial activities represent the employer’s pension contributions payable by the Charity, and the balance payable reported in the notes to the accounts represents a combination of employers’ contributions and employees’ deductions payable at the balance sheet date.
Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The Trustees do not consider there to be any estimates or judgements that are critical to the financial statements.
20
The Literacy Pirates Limited Notes to the Financial Statements For the Period Ending 31[st] August 2023
2) Voluntary Income (Donations and Legacies)
| AKO Foundation Allan & Nesta Ferguson Charitable Trust Amazon Axa Axis Foundation Bain Capital Children's Fund Europe Betty Messenger Charitable Foundation Bloomberg L.P. BNI Foundation Chapman Charitable Trust Charles S French Charitable Trust Clarion Futures Colt Technology Services (UK) CPF Trust David & Ruth Lewis Family Charitable T. David Tebbutt Trust Drapers' Charitable Fund Forterra Building Products Foundation for Future London FundApps Garfield Weston Foundation Golden Circle Tuition Gravis Capital Management Greater London Authority Herefordshire Community Foundation Jack Petchey Foundation Company Kusuma Trust L&Q Placemakers Fund London Community Response Fund Lord Barnby Foundation Lucas-Tooth Foundation M&G Community Fund M&S Fund Phillips 66 Ltd Postcode Society Trust QS Enrolment Solutions St. James Place Charitable Foundation Salesforce Scouloudi Foundation Skipton Building Society The Allen & Overy Foundation The Big Give The Blue Thread Subtotal Carried Forward |
Restricted Funds 2022-23 £ 47,500 10,000 - 13,156 - 82,500 - - - - 4,000 2,500 - - - - - - - - - - - - - 3,000 - 25,000 5,000 - 2,000 - - 1,000 - - - - - - - - 9,460 - 205,116 |
Unrestricted Funds 2022-23 £ 5,000 - - 1,582 - 230 - 3,189 - - - - - 1,000 - 1,500 - 1,000 - 10,000 - - 6,255 - - - 1,645 - - - - - 1,000 - - 1,600 - - - 2,997 5,000 - - - 5,000 43,708 |
Total Total Funds Funds 2022-23 2021-22 £ £ 52,500 41,562 10,000 - - 10,141 14,738 - - 6,500 82,730 74,327 - 12,000 3,189 - - 1,000 - 1,000 4,000 3,000 2,500 13,000 - 14,000 1,000 1,000 - 10,000 1,500 1,500 - 25,000 1,000 - - 8,000 10,000 10,000 - 25,000 - 1,000 6,255 - - 5,000 - 29,075 3,000 - 1,645 - 8,723 25,000 10,000 5,000 17,000 - 15,000 2,000 - 1,000 - - 2,000 1,000 - 1,600 1,500 - 15,156 - 465 - 10,000 2,997 - 5,000 - - 2,400 - 5,000 9,460 - 5,000 - 248,824 379,349 |
|---|---|---|---|
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The Literacy Pirates Limited Notes to the Financial Statements For the Period Ending 31[st] August 2023
2) Voluntary Income (Donations and Legacies)
| Subtotal Brought Forward 205,116 The Buzzacott Stuart Defries Mem'l Fund - The Casey Trust - 22,500 The Colenutt Family Charitable Foundation - The Considered Ask Foundation 16,667 The Constable Educational Trust 28,000 The Dixie Rose Findlay Charitable Trust - The D'Oyly Carte Charitable Trust 3,000 The DWF Charitable Foundation - The Englefield Charitable Trust - The Foyle Foundation 30,000 The Frognal Trust - The Generation Foundation - The Goldsmiths' Company - The Gosling Foundation - The Hadley Trust - The Haramead Trust 5,000 The Hargreaves Foundation 30,000 The Hedley Foundation - The Hiscox Foundation - The Ironmongers' Company - The Lennox Hannay Charitable Trust - The Merchant Taylors' Foundation 8,000 The Monica Rabagliati Charitable Trust - The Pantheon Charitable Trust - The Pears Family Charitable Foundation - The Percy Bilton Charity 2,952 The Portal Trust - The Prince of Wales's Charitable Foundatio 5,000 The Salters Company 5,000 The Sir Trevor Chinn Charitable Trust No2 - Theirworld - Tottenham Grammar School Foundation 5,000 UBS 18,000 Walcot Foundation 30,000 Wattle and Slate - West Hackney Parochial Charity 15,000 Other Corporate Giving - Other Trusts & Foundations 500 Individual Giving 10,400 Legacy Giving - Totals 440,135 The Charity of Sir Richard Whittington (The Mercers' Company) |
43,708 - - - - - - - - - - - - 500 20,000 - 5,000 - - - 10,000 - 2,000 - - 12,500 15,000 - - - - 500 - - - - - - 1,454 80,000 260,869 10,578 462,109 |
248,824 379,349 - 1,000 - 3,000 22,500 40,000 - 1,000 16,667 33,333 28,000 - - 3,000 3,000 3,000 - 2,000 - 2,000 30,000 - - 1,500 500 - 20,000 - - 15,000 5,000 5,000 5,000 - 30,000 30,000 - 1,000 10,000 - - 5,000 2,000 - 8,000 - - 3,000 12,500 22,500 15,000 55,000 2,952 - - 17,500 5,000 - 5,000 - 500 500 - 10,000 5,000 5,000 18,000 8,900 30,000 25,000 - 264 15,000 15,000 1,454 8,014 80,500 90,000 271,269 205,079 10,578 10,000 902,244 1,000,939 |
|---|---|---|
(2021-22: £511,576 of funds were restricted and £489,363 were unrestricted)
The Literacy Pirates would like to thank all our funders. This includes those that joined the Captain's Collective and those donors giving multi-year funding, including our Pirate Pals, giving monthly donations. Also those Trusts and Foundations, individuals and corporates who choose to give anonymously, plus everyone who offers us pro-bono support.
22
The Literacy Pirates Limited Notes to the Financial Statements For the Period Ending 31[st] August 2023
3) Income from Charitable Activities
| Income from School Referral Partners Income from Alternative Provision Total |
Total Total Funds Funds 2022-23 2021-22 £ £ 45,843 46,184 60,000 - 105,843 46,184 |
|---|---|
The income listed above relates to the one charitable activity: promoting the education of people in the UK through support to develop their literacy and creativity. All income from charitable activities was unrestricted. (2021-22: all income was unrestricted).
4) Investment Income
| Interest on Bank Deposits Total All investment income was unrestricted (2021-22: all income unrestricted). |
Total Total Funds Funds 2022-23 2021-22 £ £ 17,100 1,705 17,100 18,863 |
|---|---|
5) Trading Income
| Property Sub-let, service charges Occasional Room Hire Total |
Total Total Funds Funds 2022-23 2021-22 £ £ 15,144 14,519 1,321 4,344 16,465 18,863 |
|---|---|
All trading income was unrestricted (2021-22: all income unrestricted).
23
The Literacy Pirates Limited Notes to the Financial Statements For the Period Ending 31[st] August 2023
6) Other Income
| Restricted Unrestricted Funds Funds 2022-23 2022-23 £ £ Charges for Staff Attendance at Events - 200 DWP Access to Work Grants 6,025 - Sundry Reimbursements - 20 Total 6,025 220 All other income was unrestricted. (2021-22: all income was unrestricted). |
Total Total Funds Funds 2022-23 2021-22 £ £ 200 300 6,025 - 20 - 6,245 300 |
|---|---|
7) Expenditure on Raising Funds
| Restricted Funds 2022-23 £ Staff costs 2,927 Other fundraising costs 399 3,326 (2021-22: £7,721 of expenditure was restricted and £139,338 |
Unrestricted Funds 2022-23 £ 134,025 71,624 205,649 unrestricted). |
Total Total Funds Funds 2022-23 2021-22 £ £ 136,952 103,890 72,023 43,169 208,975 147,059 |
|---|---|---|
8) Expenditure on Charitable Activities
| Staff costs Education materials and activities Volunteer costs Fantastical space costs Depreciation Other costs Support costs (see note 9) Governance costs (see note 9) |
Restricted Funds 2022-23 £ 376,060 25,766 394 48,829 - 14,501 3,294 - 468,844 |
Unrestricted Funds 2022-23 £ 276,953 21,554 5,052 48,122 11,244 36,733 21,031 5,744 426,433 |
Total Total Funds Funds 2022-23 2021-22 £ £ 653,013 501,136 47,320 35,339 5,446 3,852 96,951 101,932 11,244 10,075 51,234 64,713 24,325 11,718 5,744 5,589 895,277 734,354 |
|---|---|---|---|
(2021-22: restricted expenditure was £498,721 and unrestricted expenditure £235,633).
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The Literacy Pirates Limited Notes to the Financial Statements For the Period Ending 31[st] August 2023
9) Support and Governance Costs
| Support costs: IT and telephone costs Office supplies Other costs Total support costs: Recharged to charitable activities Governance costs: Audit Fees Trustee meeting costs Total governance costs: Recharged to charitable activities |
Restricted Funds 2022-23 £ 564 2,730 - 3,294 3,294 - - - - - |
Unrestricted Funds 2022-23 £ 15,953 3,561 1,517 21,031 21,031 - 5,670 74 5,744 5,744 - |
Total Total Funds Funds 2022-23 2021-22 £ £ 16,517 6,228 6,291 4,470 1,517 1,020 24,325 11,718 24,325 - 11,718 - 5,670 5,400 74 189 5,744 5,589 5,744 - 5,589 - |
|---|---|---|---|
(2021-22: £1,111 of support costs expenditure was restricted, £10,607 was unrestricted. All Governance costs were unrestricted)
10) Taxation
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation Tax purposes. Accordingly the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
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The Literacy Pirates Limited Notes to the Financial Statements For the Period Ending 31[st] August 2023
11) Comparatives for the Statement of Financial Activities
| Income Donations & legacies Charitable activities Investment income Trading income Other income Total Income Expenditure |
Restricted 2021-22 £ 511,576 - - - - 511,576 |
Unrestricted 2021-22 £ 489,363 46,184 1,705 18,863 300 556,415 |
Total 2021-22 £ 1,000,939 46,184 1,705 18,863 300 1,067,991 |
|---|---|---|---|
| Raising funds | 7,721 | 139,338 | 147,059 |
| Charitable activities Total Expenditure Net Income/(Expense) Transfers Between Funds Net Movement Between Funds Total Funds Brought Forward Total Funds Carried Forward |
498,721 506,442 5,134 1 - 5,133 196,461 201,594 |
235,633 374,971 181,444 1 181,445 523,986 705,431 |
734,354 881,413 |
| 186,578 - 186,578 720,447 907,025 |
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The Literacy Pirates Limited Notes to the Financial Statements For the Period Ending 31[st] August 2023
12) Staff Costs
| Wages and salaries Social security costs Pension costs |
2022-23 2021-22 £ £ 717,238 552,184 59,654 43,843 13,074 8,999 789,966 605,026 |
|---|---|
One employee earned remuneration of between £60,000 and £70,000 per year (2021-22: no employees earned more than £60,000).
The average number of employees during the period were 26 (2021-22: 20). Employees are counted irrespective of whether the worker is employed full time or part time, in accordance with the requirements of the SORP. As the Charity employs some part time and sessional workers, the average head count would be 22 based on full time equivalents (2021-22: 17).
Key management personnel.
The trustees consider the Board of Trustees, Chief Executive Officer, Director of Learning, Director of Fundraising and Director of Finance to be the key management personnel of the charity in charge of directing and controlling the charity and running the charity on a day to day basis.
All trustees give their time freely and no trustee remuneration was paid in the year. Details of trustees expenses and related party transactions are disclosed in the notes of the accounts.
Trustees are required to disclose all relevant interests and register them with the board in accordance with the charity's policy.
The pay of the CEO along with all staff is reviewed annually by the Board and when appropriate increased taking into consideration inflation, average salaries in the area and salaries of other similar sized charities to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles.
The key management personnel of the Charity comprise the trustees (who are not remunerated) and the Chief Executive along with the Director of Learning, Director of Fundraising and Director of Finance. Included in the above staff costs are the remuneration paid to key management personnel over the financial period:
| Wages and salaries Social security costs Pension costs |
2022-23 2021-22 £ £ 164,546 145,710 17,855 15,738 3,122 2,323 185,523 163,771 |
|---|---|
The charity operates a defined contribution pension scheme provided by The People's Pension which satisfies the requirements of automatic enrolment pension legislation.
At the end of the year, amounts of £2,988 were due to the pension scheme provider (2021-22: £1,754). Pension costs are allocated to the one charitable activity. These costs are split between restricted and unrestricted funds in line with the individual funding agreements.
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The Literacy Pirates Limited Notes to the Financial Statements For the Period Ending 31[st] August 2023
13) Tangible fixed assets
| Cost or valuation: At the start of the financial period Additions in the financial period At the end of the financial period Depreciation: At the start of the financial period Charge for the financial period At the end of the financial period Net book value: At the start of the financial period At the end of the financial period |
Leasehold Improvements £ 25,411 - 25,411 18,634 5,082 23,716 6,777 1,695 |
Computer Equipment For Learning £ 20,292 - 20,292 14,922 3,066 17,988 5,370 2,304 |
Computer Equipment For Staff £ 5,115 12,795 17,910 1,491 3,096 4,587 3,624 13,323 |
Total £ 50,818 12,795 |
|---|---|---|---|---|
| 63,613 | ||||
| 35,047 11,244 |
||||
| 46,291 | ||||
| 15,771 | ||||
| 17,322 | ||||
| 14) Debtors Trade debtors Prepayments Accrued Income Other debtors |
2022-23 £ 26,573 24,744 6,506 6,307 64,130 |
2021-22 £ 19,145 24,753 9,938 6,732 |
||
| 60,568 | ||||
| 15) Creditors Trade creditors Taxation and social security Accruals Other creditors Deferred income (see note 16) |
2022-23 £ 23,514 - 8,118 6,511 49,172 87,315 |
2021-22 £ 25,023 13,579 23,438 4,458 56,442 |
||
| 122,940 |
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The Literacy Pirates Limited Notes to the Financial Statements For the Period Ending 31[st] August 2023
16) Deferred Income
| 16) Deferred Income | ||
|---|---|---|
| 2022-23 | 2021-22 | |
| £ | £ | |
| Deferred income brought forward | 56,442 | 57,387 |
| Amount released to income from Charitable Activities | (55,321) | (44,562) |
| Amount of income deferred during the financial period | 48,051 | 43,617 |
| Deferred income held at the end of the financial period | 49,172 | 56,442 |
Deferred income relates to funds received in the period but where the trustees judge that the criteria for recoginition is not yet met. Typically these incomes come from either restricted grants that are ringfenced for staff salaries, or income from school partners that is earned across the academic years for which they fund. Of the deferred income amount brought forward from 2021-22, the vast majority was released in 2022-23. The new amount of deferred income in 2022-23 was £48,051 and this amount is carried forward to spend in the future financial periods in accordance with the conditions set by donors.
17) Analysis of Net Assets Between Funds
| Tangible Fixed Assets Cash at bank and in hand Debtors Less: current liabilities Tangible Fixed Assets Cash at bank and in hand Debtors Less: current liabilities |
Restricted Funds 2022-23 £ - 179,109 - - 179,109 Restricted Funds 2021-22 £ - 201,594 - - 201,594 |
Designated Funds 2022-23 £ 17,322 - - - 17,322 Designated Funds 2021-22 £ 15,771 - - - 15,771 |
Unrestricted Total Funds Funds 2022-23 2022-23 £ £ - 17,322 677,424 856,533 64,130 64,130 (87,315) (87,315) 654,239 850,670 Unrestricted Total Funds Funds 2021-22 2021-22 £ £ - 15,771 752,032 953,626 60,568 60,568 (122,940) (122,940) 689,660 907,025 |
|---|---|---|---|
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The Literacy Pirates Limited Notes to the Financial Statements For the Period Ending 31[st] August 2023
18) Restricted Funds
| As at 1st Sept 2022 £ AKO Foundation - Allan & Nesta Ferguson Charitable Trust - Axa / XL Catlin - Axa / XL Catlin - Bain Capital Children's Fund Europe 74,327 Betty Messenger Charitable Foundation 10,000 BNI Foundation 1,000 Charles S French Charitable Trust - Clarion Futures - Foundation for Future London 4,142 Herefordshire Community Foundation - Kusuma Trust - L&Q Placemakers Fund 10,000 Lord Barnby Foundation - M&S Fund - The Big Give - The Charity of Sir Richard Whittington (The Mercers' Company) 43,625 The Considered Ask Foundation 4,500 The Constable Educational Trust - The Dixie Rose Findlay Charitable Trust 3,000 The D'Oyly Carte Charitable Trust - The Foyle Foundation - The Haramead Trust - The Hargreaves Foundation - The Merchant Taylors' Foundation - The Pears Family Charitable Foundation 3,800 The Percy Bilton Charity - The Portal Trust 17,500 The Prince of Wales's Charitable Foundation - The Salters Company - Tottenham Grammar School Foundation - UBS - Cost of Living 4,200 UBS - Pirate Fan Mail 500 UBS - Sponsorship - Walcot Foundation - Lambeth 25,000 Walcot Foundation - Cost of Living - West Hackney Parochial Charity - Individual Giving (1) - Individual Giving (2) - Other Trusts & Foundations - Other Income (DWP Access to Work) - Total 201,594 |
Income 2022-23 £ 47,500 10,000 4,166 8,990 82,500 - - 4,000 2,500 - 3,000 25,000 5,000 2,000 1,000 9,460 22,500 16,667 28,000 - 3,000 30,000 5,000 30,000 8,000 - 2,952 - 5,000 5,000 5,000 3,000 - 15,000 25,000 5,000 15,000 10,000 400 500 6,025 446,160 |
Expenditure 2022-23 £ (47,500) (10,000) (4,166) (8,990) (74,327) (10,000) (1,000) (4,000) (2,500) (6,142) (3,000) - (15,000) - (1,000) (9,460) (43,625) (21,167) (28,331) (3,000) (3,000) (17,891) - (30,000) (8,000) (3,800) (2,952) (17,500) (5,000) - (5,000) (7,202) (500) - (51,192) (5,000) (15,000) - (400) (500) (6,025) (472,170) |
Transfers As at 2022-23 31st Aug 2023 £ £ - - - - - - - - - 82,500 - - - - - - - - 2,000 - - - - 25,000 - - - 2,000 - - - - - 22,500 - - 331 - - - - - - 12,109 - 5,000 - - - - - - - - - - - - - 5,000 - - 2 - - - - 15,000 1,192 - - - - - - 10,000 - - - - - - 3,525 179,109 |
|---|---|---|---|
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The Literacy Pirates Limited Notes to the Financial Statements For the Period Ending 31[st] August 2023
18) Restricted Funds Continued
Restricted funds:
A two-year grant towards the learning programme; specifically a Volunteer Co-ordinator and Session Assistant for the virtual ship. A grant to support cost of living implications on the programme. A grant towards the Book Project.
AKO Foundation
Axa / XL Catlin A grant to support cost of living implications on the programme. Axa / XL Catlin A grant towards the Book Project. Bain Capital Children's Fund Europe A grant to help expand the impact and reach of the virtual learning programme. Betty Messenger Charitable Foundation A grant to support the general learning programme. BNI Foundation A grant towards the costs of the Young Authors Project Charles S French Charitable Trust A grant towards the costs of the Making a Movie Project. Clarion Futures A grant towards the costs of running the Virtual Ship programme. Foundation for Future London A grant to support A Year of Creative Learning Adventures. Herefordshire Community Foundation A grant towards the costs of the Film Project. Kusuma Trust A grant towards volunteering activities of the charity. L&Q Placemakers Fund A grant towards the running costs of the virtual ship. Lord Barnby Foundation A grant towards the costs of the Book Project. M&S Fund A grant to support the general learning programme. The Big Give A campaign to narrow the education attainment gap. The Charity of Sir Richard Whittington (The Funding for the Haringey Ship. Mercers' Company) The Considered Ask Foundation A grant towards the salary of the School Partnerships Manager. The Constable Educational Trust A tech fund grant towards developing the Virtual Ship programme. The Dixie Rose Findlay Charitable Trust A grant towards the running costs of the virtual ship. The D'Oyly Carte Charitable Trust A grant towards the Film Project. The Foyle Foundation A grant towards the costs of running the Virtual Ship programme. The Haramead Trust A grant towards the costs of the Book Project. The Hargreaves Foundation A grant to support the general learning programme. The Merchant Taylors' Foundation A grant towards the costs of the Book Project. A grant 50% funded by DCMS to project manage improvements in volunteer The Pears Family Charitable Foundation infrastructure.
A grant to help expand the impact and reach of the virtual learning programme. A grant to support the general learning programme. A grant towards the costs of the Young Authors Project A grant towards the costs of the Making a Movie Project. A grant towards the costs of running the Virtual Ship programme. A grant to support A Year of Creative Learning Adventures. A grant towards the costs of the Film Project. A grant towards volunteering activities of the charity. A grant towards the running costs of the virtual ship. A grant towards the costs of the Book Project.
The Percy Bilton Charity A grant to replace chairs used by the Young Pirates. The Portal Trust A grant towards the Young Authors' Book Project. The Prince of Wales's Charitable Foundation A grant towards the costs of expanding into Lambeth. The Salters Company A grant to support the general learning programme. Tottenham Grammar School Foundation A grant towards the costs of running the Haringey learning programme. UBS A grant to support cost of living implications on the programme. UBS A grant towards the costs of administering Pirate Fan Mail. UBS A grant sponsoring one school on the programme. A grant towards the costs of running the virtual learning programme in Walcot Foundation Lambeth between 2022-25. Walcot Foundation A grant to support cost of living implications on the programme. A multi-year grant towards the costs of running the learning programme West Hackney Parochial Charity in Hackney. Individual Giving (1) A grant to support the general learning programme. Individual Giving (2) A donation covering the cost of room rental for a fundraising event. Other Trusts & Foundations A donation to support disadvantaged 9-12 year olds. DWP Access to Work Grants to provide equipment to charity staff members.
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The Literacy Pirates Limited Notes to the Financial Statements For the Period Ending 31[st] August 2023
19) Unrestricted Funds
| As at 1st Sept 2022 £ Designated Funds: - Fixed asset fund 15,771 Total Designated funds 15,771 Unrestricted Funds 689,660 Total Unrestricted Funds 705,431 As at 1st Sept 2021 £ Designated Funds: - Fixed asset fund 19,652 Total Designated funds 19,652 Unrestricted Funds 504,334 Total Unrestricted Funds 523,986 |
Income 2022-23 £ - - 601,737 601,737 Income 2021-22 £ - - 556,415 556,415 |
Expenditure 2022-23 £ (11,244) (11,244) (620,838) (632,082) Expenditure 2021-22 £ (10,075) (10,075) (364,896) (374,971) |
Transfers As at 2022-23 31st Aug 2023 £ £ 12,795 17,322 12,795 17,322 (16,320) 654,239 (3,525) 671,561 Transfers As at 2021-22 31st Aug 2022 £ £ 6,194 15,771 6,194 15,771 (6,193) 689,660 1 705,431 |
|---|---|---|---|
Designated funds:
- Fixed asset fund. This fund reflects the value of fixed assets that are not available as part of the Charity's day to day working capital.
Unrestricted funds:
- General unrestricted funds are the free reserves after allowing for all designated funds.
20) Reconciliation of net movement in funds to net cash flow from operating activities
| Net movement in funds: Add: Depreciation Deduct: Investment income Decrease/(increase) in debtors Increase/(decrease) in creditors Net cash flow from operating activities |
2022-23 2021-22 £ £ (56,355) 186,578 11,244 10,075 (17,100) (1,705) (3,562) (31,256) (35,625) 46,980 (101,398) 210,672 |
|---|---|
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The Literacy Pirates Limited Notes to the Financial Statements For the Period Ending 31[st] August 2023
21) Lease commitments
At the balance sheet date, the charity was committed to paying the following non-cancellable operating leases in respect of land and buildings.
| Due in one year Due in 2-5 years |
2022-23 2021-22 £ £ 55,314 80,532 72,318 111,895 127,632 192,427 |
|---|---|
The charity leases property in both Hackney and Haringey. The lease for the Hackney was renewed in 2022 and expires on 30th June 2027. The Haringey premises is leased until 2nd December 2024 and is cancellable on three months notice. The minimum commitments under these terms are disclosed in this note.
22) Related party transactions
During the financial period the company made the following related party transactions:
Trustees
No Trustee received any remuneration for their services to the Charity.
All Trustees waived their right to claim expenses from the Charity during the period. Consequently no expenses were paid to Trustees (2021-22: £nil)
Trustees made voluntary donations of £152,860 either in-person or through workplace charity giving facilities. (2021-22: £3,700 of voluntary donations).
One Trustee is in a position of influence or control at Bain Capital Europe. Bain Capital Children's Fund, a connected party, made grants and donations of £82,730 in the financial period (2021-22: £74,327 donated).
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