## **Keats Community Library** 


## **Annual Report and Financial Statements for the year ending 31[st] December 2022** 

## **Contents** 

|Part A|Getting Back to “Normal”|Page 2|
|---|---|---|
|Part B|Objectives, Achievements and Impact|Page 3|
|Part C|2022 Financial Commentry|Page 8|
|Part D|Conclusion|Page 9|
|Part E|Statutory Report and Financial Statements|<br>Page 11|



**Keats Community Library** is a registered charity in England (number: 1146702) and a company limited by guarantee (07889559) 

The address is: The Library, 10 Keats Grove, London NW3 2RR. 

Phone: 020 7431 1266 

Website: keatscommunitylibrary.org.uk 

Email: keatscommunitylibrary@gmail.com 



## **Keats Community Library** 

## **Annual Report for the year ending 31[st] December 2022** 



## **Getting Back to “Normal”** 

**A** After the strains of 2020 and 2021 and its negative impact on the library, 2022 was a big relief!  The Library was able to open for the 42 hours a week previously achieved and book movements went up again towards those of 2019 although with more by children than by adults, the reverse of before.  The chart below is a proxy for visitor interactions with total book movements. 


**----- Start of picture text -----**<br>
50000<br>45000<br>40000<br>35000<br>30000<br>25000<br>20000<br>15000<br>10000<br>5000<br>0<br>2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022<br>Child totals 2931 14842 18244 17039 20220 21331 17366 22856 13793 12463 22928<br>Adult Totals 7140 20671 20477 19043 18241 21241 20128 21231 11403 9674 17658<br>Total Loans etc 14815 35513 38721 36182 38352 42573 37494 44087 25196 22137 40588<br>Axis Title<br>**----- End of picture text -----**<br>


However we have noticed some changes. The saddest being some absent  familiar  visitors whom we shall miss.  Some regular volunteers either found other charities to help while the Library was closed for COVID-19 or became too frail to wish to come. Other, mainly elderly, regulars reduced their activity outside the home including going to the library, borrowing books or going to events.  These are experiences shared with other comparable organisations. 

The use of the Public computers is noticeably lower as many users learned to work on their own machines in the pandemic period of isolation. 

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## **Keats Community Library** 

## **Part B Objectives, Achievements and Impact** 

Keats Community Library (“KCL” or “the Charity”) is a charity with its remit to run a library in Keats Grove, London NW3 2RR (“the Library”). 

The Board of Trustees (“the Trustees”) has set objectives for KCL. 

- **Lending Literary Resources:** 

   - **Books, including Large Print and Audio books** :  25,000 books to lend with high quality stock augmented by regular buying and many generous donations. 

   - **Lending DVDs** :  We remain the only local source of DVDs to borrow, adding classic titles by purchase and donation. The lack of charge makes borrowing attractive. 

- **Encouraging people to use the Library:** 

   - **Visitors** come for many reasons, to study, to use the computers as well as taking out or returning books or attending events. 

   - **Cards Issued:** At the end of April 2023 almost 9,250 (2021: 8,400) KCL Library Cards have been issued (for which a small one-off admin fee is payable) since opening in April 2012. 

- **Encouraging use by children:** 

   - School visits returned with greatly reduced numbers from autumn of 2021. This is now growing slowly as schools have time to arrange these time-consuming visits and we hope to go beyond the previous levels 

   - Rhyme Time is now twice a week 

   - Chess classes have also resumed with pauses for holiday times 

   - Children’s books are in great demand and inevitably suffer more wear than adult stock. We continued to replace and add to the stock. 

- **Public access to the internet, computers, with printing and scanning.** 

   - We remain the only local source of public access computers and printing. There are six public computers. 

   - Public Wi-Fi remains free to all. 

- **Offering a quiet, safe place for study** : 

   - Use of the six dedicated study tables and two settees was re-started in late 2021 and is ever more used. In March 2023, every chair was occupied even the settees. 

- **Community courses/activities:** 

   - The reading group meeting on the last Thursday in each month was  better supported. 

- **Providing training and social activities for volunteers:** 

   - A cohort of about 50 volunteers, including the active Trustee Board, remains stable, with a few departures. 

   - Our volunteers are, above all, loyal and reliable with a love of books and an amazing scope of knowledge and expertise relevant to the Library. 

- **Providing work place experience for young people:** 

   - We offer volunteer slots to youngsters for community service such as Duke of Edinburgh’s Award or Scouts and qualification related placements for local secondary schools. This was suspended in March 2020 and resumed in January 2022 

   - Our apprentice programme continues for 30 hours a week ; the latest  apprentice joined in February 2023 

P a g e  | **3** 



## **Keats Community Library** 

- **Cultural events of the highest quality, which are affordable and accessible to all:** 

   - We managed 12 events in 2022 (2021:10) including the Hampstead Summer Festival and the Garden Party. 

   - We are indebted to the speakers who are so generous in sharing their time with us, and we remain open to ideas on expanding our range of activities. 

**Thanks are due to all our volunteers for constantly expanding and improving our services.  One of the rewards of being a volunteer is receiving comments from Library users on the helpful and friendly service.** 

## **Book stock** 

As always, we continue to improve our stock by selective purchase and donation.  Children’s books are heavily used and need constant replacement. Most books, and all the children’s books, are covered with film which adds to the time and cost of adding books. 

We are grateful to our many supporters who continue to donate excellent quality books for us to take into stock.  We are always grateful for donations and we strive to waste nothing. Donated books can be taken onto the shelves as needed, sold on our ‘For sale’ shelves or at our twice yearly book sales or sent to an agent in return for a commission.  Book Donations, alongside supportive suppliers, allow us to add a lot more books than our modest budget alone would allow. 

We remain determined to do what is needed to keep our stock relevant and in good condition. We ensure that we have the latest publications, such as the Baileys (formerly Costa) and Booker Prize long-list for fiction, and popular non-fiction books such as the TS Eliot and Samuel Johnson Prize winners, as promptly as possible.  Readers are also welcome to recommend titles for purchase. 

We dispose of books which are either in poor condition or have not been borrowed for 4 years. Classics and other heavily read books are replaced. 

## **DVDS** 

DVDs continue as part of our offering, for children and adults. We are now the only local source for the community to borrow films. 

With the decline in the DVD market, acquisition of films approved for “rental” is very limited and expensive. In the past we encouraged donations of  DVD but these have become ever lower in quality and we no longer encourage it. Essentially, we maintain the lending service for those in the community who are unable to stream or download films. In the library, classic films are as popular as new releases. That said, the numbers of DVDs was 10 a week compared with 35 a week in 2019, the last “normal“ year. 

A grant by _**U3A in London**_ allowed us to lend DVDs free of charge from 2017 and this has been extended every year. 

## **Children’s Library (“CL”)** 

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## **Keats Community Library** 


Jana Harrison, a Trustee, is responsible for the Children’s Library. Visits by local schools, (free of charge), ceased in March 2020 and picked up again on an ad hoc basis in autumn 2021. Despite a reduction in school visits we have continued our school outreach and have developed new relationships with local schools while maintaining current ones. 

We continued in 2022 to expand our commitment to several local schools with book donations. We sorted through book donations to accumulate relevant and high-quality books and arranged for delivery of these books to the teachers. We are looking forward to welcoming our local schools back more regularly to the Library. 

Our Licence Agreement with the City of London Corporation allows us to share the Nightingale Room, where we lay out the dedicated space for children. We have only Tuesdays, Fridays and Saturdays exclusively for the CL, but the City kindly allows us to use the room on other days when they do not need it. This has been working well, although attendance is lower on those days as we cannot advertise these _ex-gratia_ hours or use them for regular school visits or planned CL activities. 

Historically, over 80 primary schoolchildren visit the Children’s Library each week with their class during the school term, when permitted, and many of their families subsequently join the Library. While there is considerable demand for library visits from our local schools and our outreach has been very successful, we are sadly limited in the hours we can offer to local schools due to our licence agreement. 

## **We continue to increase our budget to buy more children’s books – children’s books wear out, get lost or damaged and, of course, we need to have new additions of** _**must have**_ **series all the time.** 

During 2022 we continued to build up our children’s activities. We are again offering our Rhyme Time sessions on Tuesday and Friday mornings, weekly Story Time session on Saturday afternoon and chess classes. We also offer regular events for children such as poetry workshops and art classes.  The summer Garden Party (part of the Hampstead Summer Festival) was very well attended and we had queues down the street waiting to get in. We  continue to rebuild up our children’s programming in 2023. 

P a g e  | **5** 



## **Keats Community Library** 




## **Chess Classes** 

With Bryan Ellis, our wonderful teacher, the chess programme was held every Saturday in term time. Thanks to the _Chess in Schools Association_ we remain well equipped with boards and chess pieces. 

## **Summer Reading Challenge** 

In 2022, we changed from the formal approach to a more tailored version using our own stickers and book displays. It was more fun and easier on our team to manage. 

## **– Community Activities Provided free of charge** 

## **Reading Group** 

Our Thursday early evening reading group now has it staunch regulars ably run by Joan Bruggen. 

## **Computers and technology** 

Public Access Computers/Internet:  The six public computers are a key part of our community offering.  Demand is noticeably lower and as a result, access is more open. The Library also offers Wi-Fi without charge or time limit. 

Printing is resuming toward previous levels and now covers its costs after rental and paper, which was not the case in 2021. Previously, our printers were heavily used as the only place in the local area for public access printing from the internet, and in colour. Prices have been held since opening. 

Our library system, Heritage, is run through the internet and is a key part of our daily operation. We chose the best available system in 2012 and it has proved reliable and easy for volunteers to use day to day. It provides an extensive range of management features which we are still learning about, when time allows 

Jonathan Nakouzi is the Trustee who continues to take on IT responsibility for us and, with his team, worked hard to keep us running, 

## **Intern/ Apprentice** 

Our apprentice programme continued with Sarah, who was succeeded in February 2023. The apprentice provides KCL with continuity across volunteer shifts and provides a more consistent offer to our visitors. 

P a g e  | **6** 



## **Keats Community Library** 

The paid apprenticeship is arranged through a contract with a specialist agency which employs them. The programme provides a young person with an opportunity to learn a skill set while working in a full-time customer facing function. In addition to on-the-job training the apprentice has a training programme with courses laid down by the specialist agency. Previous apprentices have gone on to work in publishing, customer service and into further library and information management training. 

## **Relationships with other parties** 

**Other Libraries:** We keep in touch with other libraries that were transferred to community use. Each has a different model so comparisons are not meaningful **.   KCL is unusual having only limited use of the building for which it pays significant sums. KCL also lacks support that could come from being part of a larger organisation.** 

**Public Bodies:** We continue to try to contact many other bodies who champion reading.  But we have had some difficulties accessing services from those, such as the Arts Council of England and the Reading Agency who still do not consider community libraries, such as the Library to be a “public library”. 

**Camden Council:** We receive no funding towards our running costs from the Council. Informal friendly contact is maintained at councillor level and with Camden officers who have helped bridge the gap when organisations fail to recognise KCL as a “public library”. 

**City of London Corporation and Keats House:** Relations with our Licensor and neighbour have been assisted by internal changes within the City of London, as Keats House became part of the local Open Spaces team. Relationships have continued to thrive at all levels and KCL is treated very much as part of the community team. 

KCL is the Licensee under a “licence to occupy”, which is an arrangement used in situations where the landlord retains control over use of the premises and remains responsible for building management. The Library’s licence does not guarantee unlimited access to the premises at all times, as would be usual under a conventional lease. KCL has access to 42 hours in the main rooms and only 25 hours in the Nightingale Room which is used as the Children’s Library. Other hours are by agreement and may involve hourly charges. 

On the other hand the licence stipulates that the landlord retains responsibility for maintenance, insurance and many routine services and utilities, thus reducing the Library’s exposure to exceptional costs and the management time in resolving building issues. 

The landlord is Keats House, a registered charity of which the City of London Corporation is the sole Trustee.  Given the substantial costs connected with the management of the listed building in which the Library is housed, the Trustees consider that the Library receives fair value for the licence fee. 

The high base cost is nevertheless one reason that we need to rely more on volunteers than other libraries, and have to work harder to raise money from the community by donation and from events. We have held a number of joint events with Keats House, mainly those based around poetry and the Romantic Era and plan more. We share the Children’s Library such as when Keats House holds a popular “family day” once a month. 

P a g e  | **7** 



## **Keats Community Library** 

## **Part C 2022 Financial Commentary** 

## **1. Introduction** 

During 2022 KCL achieved a surplus (after investment losses and gains) of £22,781 (2021: £38,741) retaining a healthy cash balance and increasing reserves. 

While this was an outstanding result given the unprecedented operating environment, it depended on continuing to reduce costs to counter lost income.. Fundraising remains unpredictable; we rely on one-off events when celebrities and speakers are available. In 2022 we had 2 legacies and one large donation without which there would have been a deficit. 

Our biggest single expense is the licence fee for the use of the library building which we pay to the landlord of £27,234 for 2022 (2021: £10,113). This fee is linked to inflation (CPI based) and was lower in 2021 due to opening restrictions. The licence fee makes our base costs higher than those of most local community libraries. It is one reason that we need to rely on volunteers and have to raise money from the community by donation and from events. Our second largest expense is the apprentice, costing £19,352.84 (2021: £3,807).  This was low in 2021 due to COVID. 

Grant funding remains problematic for libraries as most funders are keen to finance a new specific “project” with added socially worthwhile outcomes and do not support on-going expenses. 

The Library invested £75,000  of  its reserves in two property unit trusts in 2017 to attempt to augment the then feeble income from bank deposits. After suffering in the pandemic the funds recovered in 2021 only to fall again to £68,289 at the end of 2022. However they pay dividends which have amounted to some £3000 per annum over the 5 years. Overall the choice of these funds was justified with their minimal exposure to retail business. 

## **2 Operations Income** 

Day to day activities and charges normally provide a steady and relatively predictable stream of funds. We sell coffee and our two laser printers, books, DVDs, cards, postcards (which were donated) and so on. Income from issuing library cards doubled in 2022 to £1440 (2021: £735); we currently only levy this £5 charge for each household once on joining, or when cards are lost. 

Books Sales of £9,436 (2021: £8,234) are an important source of income, however remaining lower than pre-pandemic when we often raised in excess of £10,000 annually. Sales are ongoing in the Library, in addition to  wo Giant Book Sales each year. In addition we have benefited from the generosity of Neil Titley who donated all the profits of his book “Under Ken Wood”. This provided some £1,276 in 2022 (2021: £2,552). 

Rhyme Time, when running, in term time continues to be very popular, generally covers its costs with donations made by most, but not all, attendees. 

**3 Donations** 

P a g e  | **8** 



## **Keats Community Library** 

Overall donations received in 2022 were £53,273 (2021: £20,863) including Gift Aid.  The number of loyal donors who contribute by Standing Order, monthly or annually, has been steady. This figure hides the steady decline in regular contributions in one off donations as we received 2 legacies and one large donation. Gift Aid remains a great help in increasing the value of individual donation and we encourage all donors to consider completing the simple form. 

We are very grateful for those loyal supporters who stayed with us even when they could not use the library. Many comment how important the library is to them and the community and that they are happy to help. 

## **4 Sponsors** 

We have been very fortunate in receiving help from a number of sponsors.  In 2022 **U3A in London** renewed their generous support which goes towards allowing free DVD rentals and also some event support. 

**Osbornes Law,** a Camden and Hampstead firm of solicitors have been amazing supporters of our events in the Library.  Their support has transformed our event options and allows KCL to keep prices unchanged despite inflationary pressures. 

## **5 Hampstead Summer Festival (“HSF”)** 

KCL has a well-established relationship with the HSF. Indeed 2022 was the tenth year in which KCL was a beneficiary of funds raised by the HSF. In 2022 we ran four days of events, all held in the grounds of Keats House which were generously provided without cost. The use of the grounds allowed us to control numbers giving comfort to nervous visitors. The Taming of the Shrew was performed by a professional company visiting for the third year with ever larger numbers attending the Art Fair and the wonderful Family Garden Party.  The Festival raised £7,772 net for the Library (2021: £5,302). 

**We are most grateful for the Festival team’s dedicated hard work for the community and look forward to future Festivals.** 

## **Part D Conclusion** 

As we say every year, this is so much a community undertaking that it is inappropriate to single out people to thank, in addition to the sponsors and local businesses who have been so supportive. 

On behalf of the Trustees, I would like to record here the deep debt of gratitude owed to the many volunteers, each of whom made an important contribution to the community and its Library. 


S Bobasch Chair of Truste **es** 

## **Trustees and their Responsibilities:** 

- Steven Bobasch Chair of Board 

- Simon Brumfit Apprentice Manager 

P a g e  | **9** 



## **Keats Community Library** 

- Andi Dollia 

- Jana Harrison 

- Vicky Joel 

- Jonathan Nakouzi 

- Nigel Steward 

- Kate Burge 

Treasurer 

Operations & Children’s Library 

- Events, Book Buying & Corporate Sponsorship Information Technology 

- Company Secretary &  Heath & Hampstead Society Liaison 

- Volunteer Recruitment and Co-ordination 

## **Honorary President:  Lee Montague** 

## **Patrons:** 

- David Baddiel 

- Lord Bragg 

- Simon Callow 

- Dame Margaret Drabble 

- Alan Hollinghurst 

- Anthony Horowitz 

- Jeremy Karpel 

- Sir Andrew Motion 

- Deborah Moggach 

- Michael Palin 

- Sue Perkins 

- Dame Janet Suzman 

P a g e  | **10** 



## **Keats Community Library** 

## The Report of the Trustees and Financial Statements for the Year Ended 31[st] December 2022 For Keats Community Library 

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2022 

||Page|
|---|---|
|Report of the Trustees|12|
|Independent Examiner’s Report|17|
|Statement of Financial Activities|18|
|Balance Sheet|19|
|Notes to the Financial Statements|20|



P a g e  | **11** 



## **Keats Community Library** 

## REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31[ST] DECEMBER 2022 

The Trustees of the Keats Community Library (“the Charity”), who are also directors of the Company for the purposes of the Companies Act 2006, present their report with the financial statements of the Charity for the year ended 31[st] December 2022. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ issued in September 2015 by the Charity Commission for England and Wales. 

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities published on 16 July 2014. 

## **REFERENCES AND ADMINISTRATIVE DETAILS** 

The Charity is known as Keats Community Library. The Trustees consider that the Charity is a “small charity” under the rules of the Charity Commission of England and Wales. 

## **Registered Company number** 

07889559 (England and Wales) 

## **Registered Charity number** 

1146702 

## **Registered office** 

Keats Grove, London NW3 2RR 

## **Honorary President** 

Lee Montague 

|**Trustees**|**appointed:**|
|---|---|
|Steven Bobasch (Chair)|19/01/12|
|Simon Brumfit|01/04/17|
|Andi Dollia (Treasurer)|10/07/18|
|Jana Harrison|29/01/13|
|Victoria Joel|19/01/12|
|Jonathan Nakouzi|19/01/12|
|Nigel Steward (Secretary)|21/12/11|
|Penelope Vita-Finzi|01/01/17  Resigned 22ndFebruary 2022|
|Kate Burge|07/06/22|



## **Company Secretary** 

Nigel Steward 

## **Independent Examiner** 

Anthony Ghilchik FCA, 6 Morland Close, London NW11 7JG 

## **Bankers** 

Barclays Bank, 28, Hampstead High Street, London NW3 1QB 

12 



## **Keats Community Library** 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Constitution** 

Keats Community Library (“the Charity”) is incorporated as a company limited by guarantee under the Companies Act 2006. It is also a registered charity. The Directors of the Company are also charity trustees as defined by section 97 of the Charities Act 1993. In this document they are referred to as Trustees. 

Directors of the Charity are also Members of the company as are some former directors.  Directors are appointed by the board by being co-opted and then confirmed at the next General Meeting of Members. The policy of the Board of Directors is to appoint people as directors who have a skill or interest to offer for which they take responsibility. 

The Charity is governed by the terms of its Memorandum of Association and its Articles of Association. 

## **Management** 

The Trustees have not delegated their powers to any one Trustee or other person, although from time to time in accordance with the Articles they delegate their powers to a sub-committee of more than one Trustee. The Trustees manage the day-to-day affairs of the Charity; there is no executive management.  The Trustees meet regularly and take note of the acts of individual Trustees on behalf of the Company. The Trustees as individuals take on certain aspects of management of the Charity as set out in the Annual Report.   The Charity does not employ any staff directly. 

## **Risk and Internal Controls** 

The Trustees have a duty to identify and review the risks to which the company is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. 

The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to manage exposure to the risks. The key types of risk to which the charity is exposed, along with the principal processes in place to manage and mitigate the risks, are briefly described below: 

The Trustees have identified three main areas of risk: 

1. **Risk of Personnel** : Heavy reliance on volunteers for all aspects of operation. Ageing of volunteers. **Mitigation** : The organisation derives its strength from the quality and dedication of volunteers, many of whom have been in post since the Charity was established. We receive regular offers from potential new volunteers of all ages. Our volunteer manager interviews the applicants and maintains a list of appropriate new volunteers who can be inducted when a vacancy arises.  In addition the Apprentice ensures that there is a regular presence in the Library and that the requirement for volunteers is generally limited to one per shift. 

2. **Risk of fraud and internal control failure** . Our work involves the handling of cash and donations. We may be subject to fraud. 

**Mitigation:** The principal internal controls, which apply to staff and volunteers, including segregation of duties and cash management controls including double signature etc., are set out in the office manual. As far as feasible all aspects of operation are checked by others. Our volunteers are subject to Criminal Records checks if likely to be unsupervised.  The modest amount of cash in the Library is counted at the beginning and end of every day and wherever possible by different people. Cash is banked separately by a Trustee not involved in counting the money. Bank payments require signature by two Trustees. 

3. **Safeguarding risk** . The Library welcomes many children and vulnerable adults. A safeguarding concern may arise. 

**Mitigation:** All volunteers who are likely to have unsupervised access to children must be subject to an appropriate Criminal Record Check before commencing work. Children are not permitted to be left in the library unaccompanied by an adult. School groups are supervised by appropriate numbers of staff from 

13 



## **Keats Community Library** 

their school 

**4. Funding Risks:** the Charity is reliant on grants and donations of various kinds. 

**Mitigation** : Many members of the community generously give regular donations which with income from Library operations provide a steady income.  The Trustees seek to increase these to provide greater certainty of income. 

As institutional grants are difficult to obtain for running costs, the Trustees focus on self-funding by offering events, many with celebrities, arrange book sales and generally seek to increase revenue. 

Despite all the challenges of 2022, there was still a surplus due to three unexpected large donations. The Trustees have proved adept at adapting their fundraising sources over the past years and are confident of continuing to do so. 

The level of reserves would allow the Library to continue for a number of years even if there are deficits. The Trustees maintain contacts with a range of grant providers and potential donors to understand their requirements and to try to develop future funding. 

**5. Security of Tenure:** KCL operates under a short term license granted by The City of London Corporation (the “Licensor”) which is also the Trustee of Keats House.  The Licensor has yet to execute new license following the conclusion of the previous license period in April 2021. 

**Mitigation:** KCL has operated since April 2021 by agreement with the Licensor as if the Licence was still in effect in terms of usage and payment. Previous renewals of the Licence have all been agreed long after the relevant expiry. 

The Licensor wrote in May 2022 to confirm that it intended to extend the licence to May 2026. The Trustees were last advised in December 2022 that the Licensor intends to grant a short licence to March 2024 before engaging in discussions on the terms of a longer Licence with the intention of honouring their letter of May 2022. 

The Trustees continue to press the Licensor for greater security of tenure. However, while it is likely that a longer term licence will be offered the Trustees must plan for the possibility that this is not forthcoming. For this reason the Charity maintains sufficient reserves to enable: 

- relocation to an alternative venue at a potentially higher rent as well as the cost of establishing and fitting out the new location or 

- If this is not possible, the winding up of the Charity. 

## **OBJECTIVES AND ACTIVITIES** 

## **Objectives and activities** 

The object of the Charity (as stated in the Articles) is the promotion of education, by way of providing education in the form of literary activity and learning through the facilities of a community centre based around a library. The activities include charitable services provided either without charge or for reasonable and proper remuneration which support this object.  These charitable services are designed to respond to the various and changing needs of the community, and are not limited by the Charity’s constitution. 

The Charity main activity is the running of a single library in Keats Grove for the benefit of the broader community. The library has separate rooms for children and adults and allows the borrowing of books and DVDs, access to journals, study area, public access computers and Wi-Fi and a printing and photocopying service. 

The Charity also organises a number of events all open to the public based on literacy, theatre and music. These events are intended to provide the community with access to high quality speakers and performers at modest cost.  These events also provide part of the source of funding for the Charity. In addition, the Charity offers activities aimed specifically at children, such as Rhyme Time and Chess Classes. 

14 



## **Keats Community Library** 

## **ACHIEVEMENT AND PERFORMANCE** 

The Charity has kept open a much valued local resource for the benefit of the community. It provides a library environment for reading study, play and other activities for 42 hours every week. There is no comparable facility in the area. It has issued almost 9300 library cards and replaced over 14,000 books from purchases and donations. 

In 2022, there were 10 public events (2021:9) organised by the Charity in addition to the HSF There is typically one evening event a month for adults with a broad range from comedy to music to plays and of course literary evenings. 

Also, there are special events for children such as a garden party, puppets and magic shows, creative writing courses, art classes, family concerts, visits by prominent children’s authors and the Summer Reading Challenge. In addition, the weekly programmes for children of twice weekly Rhyme Time, Story Time and Chess classes continue. The Charity has now been able to re-offer the programme of inviting local primary schools some of whom bring multiple classes. 

## **FINANCIAL REVIEW** 

## **Financial Results** 

The Charity spent £58,020 (2021: £22,061) on its charitable objects during the year. Expenditure on these charitable activities was offset by directly related incoming resources of £35,516 (2021: £23,949). The deficit on charitable activities thus amounted to £22,504 (2021: a surplus of £1,888). The Charity generated income of £53,273 (2021: £20,863), excluding investment interest. Fundraising activities in this reporting period were conducted by Trustees and volunteers who are not remunerated. As a result, in this period there were no identifiable costs of generating voluntary income. Net incoming resources for the year amounted to £35,111 (2021: to £26,980). After adjustment for unrealised investment gains and losses, the surplus on ongoing activities amounted to £22,781 (2021: £38,741). The Trustees are grateful to all those who have contributed in any way to the achievement of these results. 

## **Reserves policy** 

The Trustees have examined the Charity’s requirements for free reserves, i.e. those funds which are not invested in fixed assets, nor designated for specific purposes nor otherwise committed. 

In making their assessment, Trustees have taken into consideration that at the date of approval of these statements the Charity does not have commitments to employees, although this position may change. As a result, at present the unavoidable costs of cessation, should cessation become necessary, relate to fulfilment of conditions under the Licence with the City of London, leasing and similar agreements which are not material. 

The Charity still awaits the City to execute its next planned license  but only to March  2024. This has yet to fully document with uncertainty over the promised further extension for a reasonably long period. 

As a result, substantial funds have to be kept aside in order allow the Charity to re-locate and to cover setup and potentially higher operating costs if relocation becomes the only option. 

In addition, the Charity has plans to replace or refurbish the library’s fixtures and fittings in coming years. The Directors do not consider it prudent to commit to such expenditure until a Licence of suitable term is in place. 

Last, the surplus in 2022 was achieved on because of a large donation and a legacy, both one-off events. 

15 



## **Keats Community Library** 

The reducing level of underlying income provides concern that such surpluses may not continue. 

The Trustees consider the cash reserve position at year-end to be adequate to meet these purposes as well as to manage the winding up of the Charity should this be necessary. All reserves held are unrestricted and available for furtherance of the objects of the Charity. 

## **FORMAT OF FINANCIAL STATEMENTS** 

The company is a registered charity and so achievements cannot be measured by normal commercial criteria.   Accordingly, the Trustees consider it would be inappropriate to present the financial statements in either of the formats set out in the Companies Act 2006.   Therefore, as permitted by the Companies Act, in order to reflect the special nature of the company's activities, the Trustees are of the opinion that it would be more appropriate to present a Statement of Financial Activities (incorporating income and expenditure account) rather than a Profit and Loss Account. Under the requirements of the guideline on Accounting and Reporting by Charities, the Trustees have assessed the major risks to which the Charity is exposed. They are satisfied that systems are in place to mitigate its exposure to major risks. These procedures will be reviewed annually to ensure that they still meet the needs of the Charity. 

## **Going Concern** 

The Trustees are mindful of their obligations to ensure that the Charity is a going concern in respect of a period of at least one year from the date of approval of the financial statements.  In view of the substantial reserves, mainly in cash, and the very limited liabilities, the Trustees are satisfied that the Charity is a going concern. 

**ON BEHALF OF THE BOARD** signed on 13 June 2023 


S. Bobasch – Trustee 

A. Dollia - Trustee 

16 



## **Keats Community Library** 

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF KEATS COMMUNITY LIBRARY 

I report on the accounts for the year ended 31[st] December 2022 set out on pages 18 to 25. 

## **Respective responsibilities of trustees and examiner** 

The Trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the accounts.  The Trustees consider that an audit is not required for this year under Section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is required. 

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to: 

- examine the accounts under Section 145 of the 2011 Act 

- to follow the procedures laid down in the General Directions given by the Charity Commission under Section 145(5)(b) of the 2011 Act; and 

- to state whether particular matters have come to my attention 

## **Basis of the independent examiner's report** 

My examination was carried out in accordance with the General Directions given by the Charity Commission.  An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records.  It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning such matters.  The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statements below. 

## **Independent examiner's statement** 

In connection with my examination, no matter has come to my attention: 

- (1) which gives me reasonable cause to believe that, in any material respect, the requirements 

   - to keep accounting records in accordance with Section 386 of the Companies Act 2006; and 

   - to prepare accounts which accord with the accounting records, comply with the accounting requirements of the Companies Act 2006, and which are consistent with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities have not been met; or 

- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. 


Anthony Ghilchik, FCA 6 Morland Close London NW11 7JG 

Date: 13 June 2023 

17 



## **Keats Community Library** 

## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2022** 

|Notes<br>**INCOME**<br>**Incoming resources from generated funds**<br>Donations and legacies<br>2<br>Investment income<br>3<br>**Incoming resources from charitable**<br>**activities**<br>4<br>General<br>**Total incoming resources**<br>**EXPENDITURE**<br>**5,6**<br>**Expenditure on Raising Funds**<br> <br>**Expenditure on Charitable Activities**<br>**Total resources expended**<br>**NET INCOMING RESOURCES**<br>**GAINS (LOSSES) ON INVESTMENTS**<br>**NET MOVEMENT IN FUNDS**<br>**RECONCILIATION OF FUNDS:**<br>**Total funds brought forward**<br>**TOTAL FUNDS CARRIED FORWARD**|||
|---|---|---|
||<br>||
||||
||||
|||<br>|
||**424,655**||



18 



## **Keats Community Library** 

## **BALANCE SHEET AT 31ST DECEMBER 2022** 

|Notes<br>**FIXED ASSETS**<br>Tangible Assets<br>Investments<br>7<br>8<br> <br>**CURRENT ASSETS**<br>Debtors<br>9<br>Cash at bank and in hand<br>**CREDITORS**<br>Amounts falling due within one year<br>10<br>**NET CURRENT ASSETS**<br><br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>**NET ASSETS**<br>**FUNDS**<br>11<br>Unrestricted Funds<br>**TOTAL FUNDS**|**2022**<br>**Unrestricted Funds**<br>**£**<br> <br>**-**<br>**68,749**<br>**68,749**<br> <br>**-**<br>**377,632**<br>**377,632**<br>**(21,726)**<br>**_______**<br><br>**355,906**<br>**_______**<br><br>**424,655**<br>**_______**<br><br>**424,655**<br>**_______**<br> <br>**424,655**<br>**_______**<br><br>**424,655**|**2021**<br>**£**<br>**-**<br>**81,079**<br>**81,079**<br>**-**<br>**326,051**|**2021**<br>**£**<br>**-**<br>**81,079**|
|---|---|---|---|
||||<br>**81,079**|
|||**326,051**<br>**(5,256)**<br>**_______**<br>**320,795**<br>**_______**<br>**401,874**<br>**_______**<br>**401,874**<br>**_______**<br>**401,874**<br>**_______**<br>**401,874**||



For the year ending 31[st] December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. 

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476.  The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. 

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime. 

The financial statements were approved by the Board of Trustees on 13 June 2023 and were signed on its behalf by: 


S. Bobasch – Trustee 

A. Dollia - Trustee 

19 



## **Keats Community Library** 

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022 

## **1. ACCOUNTING POLICIES** 

## **Accounting convention** 

The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), the Companies Act 2006 and the requirements of the Statement of Recommended Practice, Accounting and Reporting by Charities. 

## **Exemption from preparing a cash flow statement** 

Exemption has been taken from preparing a cash flow statement on the grounds that the Charity qualifies as a small charitable company. 

## **Taxation** 

The Charity is exempt from corporation tax on its charitable activities. It is also exempt from VAT. VAT incurred on purchased goods and services is therefore unrecoverable and is included in expenditure under the cost heading to which it relates. 

## **Income** 

All incoming resources are included on the Statement of Financial Activities when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. As a result commitments to donate and to sponsor are usually accounted for on a cash received basis. In the case of donations eligible for Gift Aid, the amounts receivable from HMRC will in principle be accounted for in the year which the relevant donations are recognised (if appropriate, as accrued income).  Items donated, principally books and other library materials, are recognised at their selling price if sold. 

## **Resources expended** 

Expenditure is accounted for on cash basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. At the year end, Trustees will take a view on any material items of expenditure to decide on their treatment with regards to accruals and prepayments. 

## **Tangible fixed assets** 

Assets are recognised in the balance sheet to the extent that the cost exceeds the de minimis threshold of £1000 per acquisition. 

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life: 

Plant and machinery 20% on cost Office Equipment including computers 20% on cost 

## **Investments** 

Since 2017 the Charity holds a part of its reserves in the form of units in Property Trust Funds. These are recognised at Market Value derived from the mid-market rates quoted by each fund at 

20 



## **Keats Community Library** 

year-end. 

## **Stocks** 

The initial stock of library books as well as certain depreciated computer equipment was gifted to the Charity by the London Borough of Camden at the time of set-up. There is no historical cost associated with these assets. Subsequent purchases of library stock are expensed in the year in which they occur. As a result the stock of books is not reflected in the balance sheet. Subsequent acquisitions of computer equipment are capitalised to the extent that they conform to the Charity’s accounting policy with regard to tangible fixed assets. 

## **Fund accounting** 

Unrestricted funds may be used in accordance with the charitable objectives at the discretion of the Trustees.  Restricted funds may only be used for particular restricted purposes within the objects of the Charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. At the present time the Charity has no restricted funds. 

## **Charitable Activities** 

Charitable activities are those activities which are included in the objects of the association as set out in the Company’s Articles of Association (and summarised in the Report of the Trustees). 

## **Events** 

Events fall within the object of the Charity of providing cultural support to the community, and are hence treated as charitable activities, even though they may incidentally generate a surplus and/or attract sponsorship. 

## **Sponsorship** 

Sponsorship receipts take several forms, including sponsorship in kind, reductions in amounts invoiced, and cash sponsorship of specific events. All sponsorship in 2022 is treated as Incoming Revenue from Charitable Activities. Cash value of sponsorship in kind is accounted for where information is available. 

## **Balance Sheet Review** 

A balance sheet review is carried out annually to ensure that the individual assets and liabilities of the Charity as recorded in the financial statements are identified and known to Trustees. 

## **Principal Assets not recorded in the Balance Sheet** 

Traditionally, the principal assets of a public library are the library building and the book collection. In the Charity’s case, from a financial accounting standpoint it is proper not to reflect these assets in the Balance Sheet. Both are nevertheless tangible assets in the stewardship of the Charity and the Trustees take appropriate steps to protect them, including a rolling inventory and active management of the book collection (book protection, disposals, sales and purchases) and monitoring of the effectiveness of the building services provided by the landlord under the terms of the licence to occupy. 

## **Roundings** 

All figures presented in the Financial Statements are rounded to the nearest pound sterling. As a result certain subtotals and totals may not correspond exactly to the sum of the constituent figures as stated. 

21 



## **Keats Community Library** 

## **2. DONATIONS AND LEGACIES** 

|Grants<br>Donations including Gift Aid|**2022**<br>**£**<br> **-**<br> **53,273**<br>**53,273**|**2021**<br>**£**<br> **-**<br> **20,863**<br>**20,863**|
|---|---|---|



Registration: Individuals using the Charity’s facilities are invited both to register and to donate. Registration fees are accounted for under charitable activities (v. Note 4). 

Sponsorship: The Charity’s accounting policy is to include sponsorship in Incoming Resources from Charitable Activities (v. Note 1). 

Grants: these are distinguished from donations to the extent that the donors are conventionally described as grantors.  Where grants are received in the form of a rebate on services provided, these are not accounted for separately. 

## **3. INVESTMENT INCOME** 

|**3.**|**INVESTMENT INCOME**|||
|---|---|---|---|
|||**2022**|**2021**|
|||**£**|**£**|
||Deposit account and property fund interest|**4,342**|**4,229**|
|**4.**|**INCOMING RESOURCES FROM CHARITABLE ACTIVITIES**|||
|||**2022**|**2021**|
|||**£**|**£**|
||Revenue from Cultural Events|**17,633**|**12,673**|
||Revenue from Library Operations|**17,883**|**11,276**|
|||**35,516**|**23,949**|
|**5.**|**EXPENDITURE ON CHARITABLE ACTIVITIES**|||
|||**2022**|**2021**|
|||**£**|**£**|
||Events Expenditure|**351**|**304**|
||Books and General Purchases|**2,485**|**1,475**|
||Licence to Occupy and space-related charges|**27,754**|**10,659**|
||Professional and contractor fees|**21,535**|**4,731**|
||Other Overheads|**5,895**|**4,892**|
|||**58,020 **|**22,061 **|
||**Depreciation**|||
||Resources expended are stated after charging:|||
|||**2022**|**2021**|
|||**£**|**£**|
||Depreciation - owned assets|**-**|**-**|



22 



## **Keats Community Library** 

## **Trustees’ Remuneration and Benefits** 

There were no trustees' remuneration or other benefits for the year ended 31st December 2022 (2021: nil). Trustees’ expenses, which were immaterial, were not accounted for separately from the expenses of volunteers and contractors. Other library costs incurred directly by Trustees are accounted for by cost element. 

## **6. STAFF COSTS** 

|**STAFF COSTS**|||
|---|---|---|
||**2022**|**2021**|
||**£**|**£**|
|Wages and salaries|**-**|-|
||**2022**|**2021**|
|Average monthly number of employees|**-**|-|



During the year an amount of £19,353 (2021: £3,808) was incurred as a result of contracts entered into with companies offering the service of apprentices. 

## **7. TANGIBLE FIXED ASSETS** 

|**7.**|**TANGIBLE FIXED ASSETS**||
|---|---|---|
|||**Plant and machinery etc.**|
|||**£**|
||**COST**||
||At 1st January 2022|**16,763**|
||Additions|**0**|
||Retirements|**0**|
||**At 31st December 2022**|**16,763**|
||**DEPRECIATION**||
||At 1st January 2022|**16,763**|
||Charge for year|**0**|
||Retirements|**0**|
||**At 31st December 2022**|**16,763**|
||**NET BOOK VALUE**||
||At 1st January 2022|**0**|
||**At 31st December 2022**|**0**|
|**8.**|**INVESTMENTS**||
||PROPERTY TRUST FUNDS||
|||**£**|
||Market Value Brought Forward at 1stJanuary 2022|**81,079**|
||Additions at Cost|**0**|
||Disposals at Proceeds Value|**0**|
||Realised Gain (Loss) on Disposals|**0**|
||Unrealised Gain (Loss) on Investments|**(12,330)**|
||**Market Value at 31st December 2022**|**68,749**|



23 



## **Keats Community Library** 

## **9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|**9.**|**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**||||
|---|---|---|---|---|
||||**2022**|**2021**|
||||**£**|**£**|
||Prepayments and advances on account||**0**|**0**|
||Accrued Income||**0**|**0**|
||Other debtors||**0**|**0**|
||||**0**|**0**|
|**10.**|**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**||||
||||**2022**|**2021**|
||||**£**|**£**|
||Taxation and social security||**-**|**-**|
||Other creditors and accruals||**21,726**|**5,256**|
||||**21,726**|**5,256**|
|**11. **|**MOVEMENT IN FUNDS**||||
||||**Net**||
||||**movement**||
|||**At 1/1/22**|**in funds**|**At**|
|||||**31/12/22**|
|||**£**|**£**|**£**|
||**Unrestricted funds**||||
||General fund|**401,874**|**22,781**|**424,655**|
||**TOTAL FUNDS**|**401,874**|**22,781**|**424,655**|



Net movements in funds included in the above are as follows: 

||**Incoming**|**Resources**|**Movement**|
|---|---|---|---|
||**resources**|**expended**|**in funds**|
||**£**|**£**|**£**|
|**Unrestricted funds**||||
|General fund|**93,131**|**(70,350)**|**22,781**|
|**TOTAL FUNDS**|**93,131**|**(70,350)**|**22,781**|



The movement in funds as stated above includes an unrealised loss of £12,330 (2021- gain of £11,761) on Investments. 

## **12. RELATED PARTY DISCLOSURES** 

There are no related party disclosures. 

## **13. PEOPLE WITH SIGNIFICANT CONTROL** 

Under regulations which came into force from 6[th] April 2016, companies are required by law to identify People with Significant Control. The Charity, as a Company limited by Guarantee, is within the scope of this legislation and complies with its recording requirements. There are currently no 

24 



**Keats Community Library** 

People (whether individuals or a Relevant Legal Entity under the terms of the legislation) who have Significant Control over the Charity.  In particular, the Charity has more than four Members. 

## **14. OPERATING LEASES** 

The Charity has an operating lease for its photocopier for 5 years from 11 May 2019 and the fixed cost is £480 per annum to which a charge is added based on each copy made. In 2022, this charge for copies amounted to £822 (2021: £707) and covers all supplies except paper.  The annual obligations for the Photocopier are under £1,000. 

## **15. GENERAL VOLUNTEERS** 

The role of volunteers is critical to the operation of the Charity.  The numbers vary as people move in and out of the area or enter into other commitments. The Charity has a roster of approximately 50 volunteers (including the Trustees) many of whom have been generously helping the Charity since its opening in 2012. 

## **16. RELATED PARTY TRANSACTIONS** 

The Trustees did not have any relevant transactions to disclose in 2022. The Trustees made donations in kind, such as providing free stamps, stationary and some supplies to the library as well as their time without charge. None of these donations in kind are considered to be of significant value to merit separate reporting. 

Donations by Trustees (as appointed at 31[st] December 2022): One Trustee donated £20 a month in 2022 and partners of Trustees donate £30 per month all by standing order. 

## **17. TRUSTEE INDEMNITY INSURANCE** 

The Trustees take out an annual insurance policy for certain risks of operating the library including public liability and employment. Included in the policy is indemnity cover for the Trustees as Directors of a limited company. The overall premium does not identify any specific premium for the part of the policy providing these directors indemnity cover but the Trustees are advised that it amounts to under £100 a year. 

25