Company registration number. 09822597 Charity registration number. 1170092 Libraries Unlimited South West (A company limited by guarantee) Annual Report and Financial Statements for th6 Year Ended 31 March 2024 WESTCOTTS CWARTeRED ACCOVNTAP4TS I BiISINESS ADVISERS
Llbraries Unllmltsd South West Contents Reference and Administrative Details 1to2 Twstees, R8POrt 3to10 Independent Audltors, Report 11to14 Statement of Financlal Activities 15 Balance Sheet 16 Stat8ment of Cash Flows 17 Notes to the Financial Statements 18to37
Librarles Unlimited South West Reference and Administrative Details Llbrarles Unlimited South West (commonly rafarred to as 'Librdries Unlimited") is a Registered Charfty and Company Limited by guaranle8 and does not have ary share capital. Its govemlng document is the Articles of A550ciation which was updated and approved by members on the 21 May 2020 and 20 October 2020. The company was incorporated on 13 October 2015. commenced trading on 1 April 2016 and registered as a charity on g November 2016. Chair Marie Chadwick Will Harvey (resigned 16 September 2023) AndW Prince Marie Chadwick Deputy Chair Trustees: Eve Ashlon (appointed 8 March 20241 Crystal Carter Marie Chadwick Alex Kittow Will Harvey {resigned 16 September 2023) George Lossius (resigned 6 June 2024> Lynn Morris Alan Nash (appointed 8 March 2024) Andrew Prin Chloe Reynolds (resigned 19 October 20231 Sue Simmons Marwa Tourky (appointed 19 October 20231 Morgen Witzel Zoe Woodbridge (resigned 19 October 2023) Page 1
Llbrarles Unllmited South West Reference and Admlnistrative Details Chief Exo¢utlve Alex Ktttow Key Management Personnel Chief Finance Officer- Tom Glanville (appointed 3 July 2023) Chief Operating Offir (previousty Head of Commercial & Innovation) - Steve Turner Head of Library Service and Customer Experience - Kate Tumer {appointed 13 December 2023). Tabilha Witherick (resigned 31 August 2023) Chief People offir- Beth Reynolds (appointed 10 July 2023} Charity Registration Number 1170092 Company Reglstrallon Number 09822597 The charity is incorporat8d in England and Wales. Exeter Library Castle Street Exeter D8von EX4 3PQ Westcotts (SW) LLP 47 Bouttth Street Bamstaple Devon EX31 1SQ Kitstons Soliciiors Torquay Devon TQ2 7FA Principal Offl¢e Auditor Solicitors.. Bankers Bardays Bank PIC Exeter Devon EX1 1LX Page 2
Librarles Unllmlted South West Trustees. Report The trustees, who are dlrectors for the purposes of company law, present the annual report together wlth the financial statements and audltors, report of the charitsble company for Ihe year ended 31 March 2024. This report satisfies the legal requirements for: a Directors, Report for a charitable company a Trustees, Annual Report under the Charities Act 2011. OUR MISSION 'To bring ideas. imagination, creativity and knowledge to enrich lives and build thriving communities." OUR CORE PURPOSES The Chariws core purposes set out how we achieve our vision: Promoting a love of reading; Providing free access to resources and infomiation", Inspiring everyonè to learn, create and reali5e their potential; Enabling ev8ryone to explore and connect to the wider world. Offering welcoming spaces; Supporting the hèalth and wellbeing of individuals and communities. LEGAL OBJECTS The Charity has been established for public benefit to: promote the advancement of education by th8 establishrnent andlor mainlenance of a library andlor library service establish andlor maintain a library andlor library service in and throughout Devon, including, but not limited to, rural communities and with a particular focus on children and young people provide or assist in the provision of community facilities referred to as "Community Hubs" to be available to all sections of the mMunitY without distinction, including use for meelings, learning, reading, sharing andlor for other educational andlor recreational or leisure time activities provided in the interests of social welfare. with the object of improving the conditions of life for all those who use the facilitses; andlor promote the advancement of education of the arts by the establishment and maintenance of 8 museum andlor art gallery develop the capacity and skills of the members of the local communlty, and particularly children and young people, who are socially or economically disadvantsged in such a way that they are better able to identify, and help meet, their needs and to participate more fully in soclety, pursue such other charitable purposes consistent with the above. PUBLIC BENEFIT The trustees have ensured that the charitvs activities are to the public benefrt and they hav8 had regard to the Charty Commission's guidance on public beneflL Page 3
Libraries Unlimited South West Trustees. Report STRATEGIC REPORT STRATEGIC AIMS In delivering its over811 charitab18 purposes. Librarles Unlimited established five strateglc plllars to drive activities and assess its effectiveness. These are as follows: People Community Diversification Environment Infrastrudure ACTIVITIES AND ACHIEVEMENTS IN THE YEAR Core Library Servlces The Charity has contracts wilh Devon County Council and Torbay Council for the provision of library and infomiats'on services to residents, businesses and visitors to Devon and Torbay. The Cwncils have the ability to extend these contracts or to renew as part of a tender process subjèct to effective perfoman¢e. We work in collaboration with the Councils to support their statutory duties under the Public Libraries and Museums Act 1964 and spacifically to ensure that local servlces: serve both adults and children work in partnership with other groups, organlsations and agencies are available to everyDne and meet any special needs or requirements of members of the local community encourage participation and full use of the services, and provide value for money. We deliver this servic8 through 54 static libraries across D&von's communities. Librartes Unllmlted and the Councils are committed to maintaining the current provision of physlGal libraries, along with the number of hours that libraries are open to th8 public and supported by paid library professionals. In addition to static libraries, during the year we provided four mobile libraries that served rural areas. Following a public consultation undertaken by Devon County Council the provision of a mobile library service was aSed during the year. We offer a home delivery service to customers that are unable to asS other seNices, In line with the rest of the country, it has been a challenging year wtth rising costs and significant pressures on our organisation and staff. We have had to negotiate significant increases in the energy bills for our buildings and rises In other expenses due to inflation. The Trustees have focused intensely on these funding challenges. and are pleased to report that with strong financial management the Charity has ended the year in a satisfactory position. We have limited the size of our unrestricted deficlt. dellvered savings on our expenditure. reduced the Impact of changes to our funding income and increased our income in areas such as room hire, donations and events. We are grateful to have such an accomplished group of slaff. managers and leaders to take us through these globally challenging economlc Ilmes. Page 4
Llbraries Unlimited South West Trustees. Report Despite the challenging economic picture, we continue to locus and develop our servlce and whilst physical borrowing remalned consistent at 1.5M In 2023-24 (1.5M 2022-23), dlgital borrowing increased by 28°/o. Customers continued to use other resources such as accessing ICT and enjoying leaming and social activilies with visits to Libraries Increasing from 2.2M in 2022-23 to 2.3m in 2023-24. Customers logged in to our free WiFi 161,000 (sessions) in 2023-24. Our new WiFi printing facility. which was launched in every library in 2022-23, has added yet another useful offering to help with daily living. enabling people to print easily and quickly from their laptops or phones via a digitsl portal from wherever they are, pick up their doojrnents and take them home. The Secret Book Quest continues to bring a love of reading to children, with over 2,000 signing up per year over the last 2 years. The Inltiative has been so successful, Libraries Unllmited is now marketing It to other library services around the country. At Libraries Unlimited our purpose is to build lives and enrich communities and as such it is extremely encouraging to see attendance at events mora than double from 190k in 2022-23 to 425k in 2023-24. The Charty was r&appointed as a National Portfolio Organisation (NPO) with Arts Council England for another 3 years (up to 2026) and continued to develop and deliver various arts and culture events throughout our libraries durlng the year. Our Libraries for Life campaign ran throughout the winter, offering everything from free hot drinks, a warm place to sit and a frlendly face, to clothing rails. budgeting and cooking advice with acc&ss to community fridges combatting food waste. Our warm welcoming spaces were dearly offering extra value and that shows in our statlsllcs. Key Operating Indicators (April to March) 2023-24 2,287,562 1.527,238 1 364.431 425,346 136.649 Libra Visits Book loans Computer & W-FI sessions Attendance at events Active borrowers 2.234.4571 1.534.610 1 328.747 190.834 131,663 In addition to the above, we have also seen other significant statistics as follows: A 28. increase in total e-Audiobook downloads up to nearfy 292,000. Total audiobooks borrowed: 24,477. Large print loans". 53,310. WiFi sessions increased by 23.fi in the year to nearly 165,000. eBook downloads w8nl up 60/(p to over 253,000. A 240/0 rise in ePress downloads (newspapers and magazines) downloads to over 302.000. Public computer sessions: 161,309. Volunteer hours up over 24,000 - a rise of 13%. More than 13.000 Ghildren took part in our Summer Reading Challeng8 - a 250/0 increase on last year. Page 5
Llbraries Unlimited South West Trustees. Report FINANCIAL REVIEW Flnancial Perfornlance Headline Indicators 2023-24 £9.542.000 £80.000 0.8% :, £115.000 1 2.88 £3.241,000 2022-23 £8.504.000 1£500.000) nla £332.000) 5_08 £3.208.000 Total income Total surDlus I (defrt} Net su lus mar in Net increase l (decrease) in cash Current ratio Unrestricted reserves Financial Performance Income and Surplus The Statement of Financial Activities shows that the Charty generated a net increase in funds of £80k (2022123: net decrease of £500.000) on an annual income of £9,542,000 (2022123: £8.504.000). The budgeted deficit for 2023124 was £255.000. The result for 2023-24 was better than budgel due to the following factors". Proactive staff vacancy and cost management throughout the period. Great8r than forecast investment income. The surplus generated on restricted funds where the costs wlll follow in the new financial year. Balance sheet position and cash flows The Charity is primarily a service provider organisation that ¢Joes not hold propety. A5 a result, balance sheet strength is driven by an excess of curront assets over current liabilities. The cash position. £3.3m as at 31 March 2024 (2023.. £3.2m). remains strong and payments under local authorlty service contracts and th8 Arts Council England funding for NPO will continue to be receiv8d quarterly in advance. In addition, the Charity is debt free which eliminates any interest rate risk from UK monetary policy. Reserves Policy During the year the trustees adopted a new reserves policy following a review of the existing pclicy. The Charity needs to provide resllience and stability to its services. The reservés pdicy has been set to support us in delivering our mission by ensuring that our work is protected from the risk of disruption at short notice due to a lack of funds. whilst at the same time ensuring that we do not relain income for any longer Ihan required. We have calculated the appropriate free reserves range for our organisation is £1.1 m to £1.3m. The Board of Tmstees consider that this target range provides sufficient flexibility in the context of operational requirements, the consideration of the need for the charity to have si11ence against risk and for an organisation of our size and mplexIty. At 31 March 2024. unrestricted reserves amounted to £3.2m (2023: £3.2m) of which free reserves totalled £2.2m (2023: £2.7m). The Trustees acknowledge that the current level of reseNes is in excess of the reserves policy. In 2024-25 the service fee from Devon County Council was cut by £200k with a fvrther cut expected in 2025-26. We currently have forecast deficits for the next years of £500k and exp8Ct to use £1 m+ of those reserves to plug the funding gap over the next two y8ars. The Trustees will Continue to review the reseNes policy on an ongoing basis. Page 6
Libraries Unlimlted South West Trustees. Report PRINCIPAL RISKS AND UNCERTAINTIES The Trustees are responsible for the identification, mitigalion and management of risk and have established a formal risk rnanagement framework to assess business risk and to implement risk managemerrt strategies. Trustees havé detemiined that the Charity should be risk aware not risk averse. recognising that it will need to take risks in order to innovate and improve services to beneficiaries. A risk register is maintained by the Charity. Risks are scored on a multiplier of impact and probability and are reported quarterly to the Finance and Audit Committee and the full Board. Principal risk5 at the balance sheet date and actions taken or planned to mitigate them are as fcAIows: Main risks Further reductions in service contract fees. plus contract renewals and Pricing in the context of public sector austerity and fvnding for local authorities Business and finanGial planning Review of potential alternative income streams Strong collaborative relationships with relevant commissioners Continued economic UnrtaInty and the potential impact on staffing, supply chain and future contracts and funding Engagement with relevant commissioners Strengthen and diversify supply chain Future prospects Trustees believe the charity is well positioned lo be a leading provider of library and information services. It has a contract with Devon County Council until March 2026 and the contract with Tort)ay Councll provldes certainty of funding un1 March 2028 after a 5-year Contract extension was agreed and signed in December 2022. Truste8s are also exploring the possibilities of dèlivering complementsry seNces from libraries which will help to strengthen footfall and broaden income generation opportunities further. The charity continues to widen its customer base within the wider cultural and business sectors. It has secured grant fundiryJ until March 2026 in relation to its successful bid to become a Nalional Portfolio Organisation of Arts Council England which will be used to enhance the arts and cuttural offer across Devon. Similady. it has secured grant funding until March 2024 in relation to the expansion of business SUPPOrt services across Devon with funding from the British Library. The charity is also well positioned to play an active role in the economic and social development of local communities. It will continue to demonstrate the impact of providing existing ServIS as well as piloting new offerings and channels. With a wide geographic read). the charity can be proactive in supporting community regeneration. disadvantaged families. local businesses and those adversely impacted by the pandemic and resultant lockdown strICtl0ns. Our five-year strategy lays out our ambitions and how we will measure our progress against specific goals. STRUCTURE AND GOVERNANCE Membershlp and control Libraries Unlimited South West is a membership organisation. The Ilability of any member 15 limlted to a sum not exceeding £1. Membership dasses are as follows.. Slaff Membership Group - any member of staff employed by the Charty is entitled to apply. Page 7
Libraries Unllmlted South West Trustees. Report Community Membership Group - any Llbrary Friends Group Is antitled to apply. Trustee Membership Group - all appointed Trustees shall be members of the Charity. Staff and Community members each control 33% of voting rights at General Meeting, with Trustees controlling the remaining 340/.. The Board of Trustees The Board of Trustees oversees the management of the Charity and comprises: up to two Staff Trustees; up to two Community Trustees., Chief Executive, ex officio., up to seven Independent Trustees. Stsff Trustees ar8 appointed for a fixed term of three years by a majority vote of the employees of the Charity. Community Trustees are similarly appointed for a fixed temi of three years on a majority vote of the Friends. Groups. Independent Trustees are also appointed fr)r a fixed term of three years. expiring at the end of the AGM in the third year following their appointment, by ordinary resolution. As part of induction and training all new Trustees meet with the Chair. senior managers and HR Manager and have a programme of site visits to understand the charitys Gultur8, operations and processes. A Trustee Handbook is maintained by all Trustees and contains information on the Charity Articles of Association, kay operations and summary business plan. It also provides advice on govemance framework within the organisation, induding Ihe duties of Trustaas and arrangements to avoid conflicts of interest. Committees The Board of Trustees hav8 the followlng committees in place for the efficient conduct of buslness: Finance and Audit People and Operalions Business Innovations and Partnerships Trustèe Nominations. Fundraising Committee Temis of reference exist for each commitlee. Remuneration of Senior Management The Chief Executive and staff trustees (Iwo in the reporting period) were paid during the year by virtue of their employment. No other trustees were paid during the reporting period. Senior management salary levels are currently detemiined through a combination of role and responsibilitias, coupled with an assessment of the local market for specific sectors. Salary levels are considered and approved by the PeO1e and OpeThgtions Committee. Senior managers are employed on stsndard terms and conditions in relation to annual leave. pension contributions and 8xpenses as applied to members of staff. The cost of salaries paid to $8nior managers Ss includ8d in Note 11. Gender Pay Gap Page 8
Libraries Unlimited South West Trustees. Report As an organlsatlon wlth mora than 250 employees, we are legally requlred to comply wlth the Equalty Act 2010 (Speclfic Duties and Publi¢ Authorities) Regulations 2017 and publish Gender Pay Gap reporting infomiation on an annual basis. This requires us to report on g8nders only, which w8 recognise does not reflect everyone's lived experience of gender but is the legal obligation. However, as part of our diversity data, we ask people to provide their gender identity. so we have looked at this in addition to our legal duty, but the numbers are very small and further analysis is not possible therefore without potentially revealing identities. We still hope to be able to develop this further in future years. As at 5th April 2023, our median gender pay gap was s.80 (8.5Vo as at 5th April 2022> and our mean gender pay gap was 16.87°A (16.34% as at 5th April 2022). It is disappointing to see that we continue to have a Gender Pay Gap, particularty as this is largely driven by the same factors that we have identified as issues in past years. However, it is positive to see that our Medlan Génd8r Pay Gap has slighuy reduced since 2022. We continue to work towards becoming a Real Living Wage employer. by putting all of our employees onto the 2023 Real Living Wage rate of £10.90 per hour, a 10OA In¢r8ase for some of our Iow8St paid staff compared to their 2022-23 rates. Addresslng our GPG is something that we remain committed to continually working on. fo¢ussing on creating gr8at@r diversity in our staff across the whole organisation to better represent Ihe Cofnmunltles we work in. Whilst we are frustrated to not have made further progress yet, we also recognise that some of the factors affecting our Gender Pay Gap are deeply ingrained and also wider SOCl8tal issues. This is never intended as an excuse but is a recognstion that it will take time to bring about change. and that it is not something we are therefore going to give up on if we find it takes a while to make that change. As an organisation, however. we are not giving up on our ambition to ensure Gender Pay Gaps are eliminated and we ar8 cDmmitted to playing a rol8 in that, focussing on doing what we can to push forward that change. Employment of Disabled People The Charity is committed to ensuring that its staff base is rellective of the communities it serves. The Charity has high levels of part-time working and will always consider workplace adjustments and job carving techniques to help employees manage long term health nditions. We are mindful of any reasonable adjustments required to ensure disabled job candidates are not disadvantaged at re¢ruitm8nt interviews and assessment centres. Statement of trustees. responslbilities The trustees (who are also the directors of Libraries Unlimited South West for the purposes of company law) are responsible for preparing the trustees. report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" Th6 report and accounts have been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies. Company law requlres the trust8es to prepare financlal stat8ments for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and applicalion of resources, including its In¢ome and expenditure, of the charitable company for Ihat period. In preparing these financial statements, the Irustees are required to". select suitable accounting policies and apply them consistently. Page 9
Llbraries Unlimited South West Trustees. Report obs8rv8 the methods and princlples In the Charities SORP" make judgements and èstlmates that are reasonable and prudent; stste whether applicable accountlng standards, comprising FRS 102 have been followed. subject to any material departures disclosed and explained In the financial statements; and prepare the financial ststements on Ihe going concem basis unless it is inappropriate to presume that the charitable company will continue in business. The truste8s are responsible for keeping proper accounling records that can disclose with reasonable accuracy at any lime Ihe financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hen for tsking reasonable steps for the prevention and detection of fraud and other irregularilies. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable cOmpanS webslte. Legislation governing the preparation and dissemination of financial statements may drffer from legislation in other jurisdictions. Disclosure of Informatlon to auditor Each trustee has taken steps that they ought to have taken as a trustee in order to make thernselves aware of any relevant audit information and to establish that the charity's auditor is aware of that infomiats-on. The trustees confirm that there is no relevant infomiation that they know of and of which they know the auditor is unaware. Small companies provlslon statement This report has been prepared in accordan with the small companies regime under the Companies Ad 2006. The annual report was approved by the trustees of the charity on 16 September 2024 and sned on its behalf by: Marie Chadwick Chairman and Trustee Alex Klttow Chlef Executive Officer and Trustee Page 10
Llbraries Unlimlted South West Independent Auditorfs Report to the Members of Libraries Unlimited South West Oplnlon We have audited the financial statements of Libraries Unlimited South Wesl (the 'charity') for the year ended 31 March 2024, which cornprise the Statement of Financial Activities. Balance Sheet, statement of Cash Flows. and Notes to the Financial Statements, induding a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards. comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicable law {United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the stste of the tharitys affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure. for the year then have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice: and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with Internatlonal Standards on Audltlng (UK) {ISAs (UK}) and applicable law. Our responsibilities under those standards are further described in the 8uditor responsibilities for the audit of the financial statements sedion of our report. We are independent of the charity in a¢¢ordance wilh the ethical requirements that are relevant to our audit of the financial statements in the UK, induding the FRC'S Ethical Standard. and the provisions available for small entities, in the circumstances set out in note to the financial statements, and we have fulfilled our other ethical responsibilities in accordan with these requirements. We believe that the audit evidence we have obtained is sufflclent and approptiate to provlde a basis for our opinion. Conclusions relating to going concern In auditing the financial statements. we have concluded that the Irustees use of the going concern basis of accounting in the preparation of the financial ststernenls is appropriate. Based on the work we have performed. we have not identified any mateTial uncertainties relating to events or conditions that. individualty or (xjllectivety. may cast significant doubt on the charity's ability to continue as a going concern for a period of at least thlve months from when the original financial ststements were authorised for issue. Our responsibilities and the responsibilities of the trustees with respect lo going concern are described in the relevant sections of this report. other inforniation The twstees are responsible for the other infomiation. The other infomiation comprises the infomiation induded in the annual report. other than the financial statements and our auditorfs report thereon. Our opinion on the financial statements does not cover the other infomation and, except to the extent otherwise explicitty stated in our report, we do not express any fonn of assurance conclusion thereon. Page11
Libraries Unlimited South West Independent Auditorfs Report to the Members of Libraries Unllmited South West In connection with our audit of the financial statem8nts. our responslbilty is to read the other infomiation and. in doing so, consider whether the other information is materially inconsistent wilh the financial ststements or our knowledge obtained in the audit or othepNise appears to be materially misstated. If we identify such material inconsistencies or apparent fflaterial misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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. Opinion on other matter prescrlbed by the Companies Act 2006 In our apinion, based on the work undertaken in the course of the auditr. the information given in the Tnjstees. Report for the financial year for which the financial ststements are prepared is consistent with the financial statements: and the Trustees, Report has been prepared in accordance wilh applicable legal requirements. Matters on whlch we are required to report by exception In the light of our knowledge and understanding of the charity and its environment obtained in the ¢ourse of the audit. we have not identified material mlsstat8ments in the Trustees. Report. We have nothing to report in respect of the following matter5 where the Companies Act 2006 rèquires us to report to you rf, in our opinlon: adequate accounting records have not been kept, or returns adequate for our audit have not been reiVed from branches not visited by us., or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees MuneratiOn specified by law are not made. or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fuSly in the Statement of trustees, responsibilities (set out on page 9 and 10), the trustees are responsible for the preparation of the financial statements and for being satisfied that Ihey give a true and fair view. and for such intemal control as ihe trustees determine 15 necessary to enable the preparation of financial statements that are fe from material misstatement. whether due to fraud or error. In preparing the financial statements. the trustees are responsible for assessing the charity's ability to continue as a going concem. disclosing. as applicable. matters related to going concern and using Ihe going concern basis of accounting unless the tnistees either inlend to liquidate the charity or to Gease operations, or have no realistic altemative but to do so. Audltor responsibilities for the audit of the financlal statements Our objectives are to obtain reasonable assurance aly)ut whether the financial ststements as a whole are free from material misstatement. whether due to fraud or error. and to issue an auditorfs report that indudes our opinion. Reasonable assurance is a high level of assurance, but is not a guarante8 that an audit conducled in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misststements can arise from fraud or error and are considered material if. individually or in the aggregate, they could asOnablY be expected to influence the economic decisions of users taken on the basis of these financial statements. Page 12
Libraries Unlimited South West Independent Auditor's Report to the Members of Libraries Unlimited South West The extent to which our procedures are capable of d8t8cting irregularities, including fraud Is detai58d below: Irregularities. including fraud, are instances of non-Gompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to whith our procedures are capable of detecting irregularities, including fraud 15 detailed below: We identified areas of laws and regulations that could 8$OnablY be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the trustees and other management. We communicated identified laws and regulations throughout our tearn. and remained alert to any indications of non-compliance throughout the audit. The charity is subject to laws and regulations that govern the preparation of Ihe financial statements, including financial reporting legislation, and other companies legislation. The company is also subject to other laws and regulations where the consequences of non-compliance could have a material impact on the amounts or disdosures within the financial statements. induding employrnent. anti-bribery, antl-money laundering and certain aspects of companies legislation. Owing lo the inh8rent limitation5 of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance wilh auditing standards. In any audit. there remains a highar risk of non-detection of irregularities, as these may involve collusion. forgery. intentional omissions, misrepresentations, or the override of intemal controls. We are not responsible for pravanting non-compliance and cannot be expected to datect non-compliance with all laws and regulations. As part of an audit in accordanc8 With ISAS (UK). we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perfomi audit procedures responsive to those risks, and obtsin 8udit evid8nce that is sufficient and appropriate to provide a basis for our opinion. Th8 risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involv8 collusion, forgery, intentional omissions, misrepresentations, or the override of internal CDntrol. Obtain an understanding of internal control relevant to the audit in order to de5gn audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on th8 effectiveness of the charity's internal control. Conclude on the appropriateness of the trustees use of the going concern basis of accounting and. based on the audit evidence obtained, whether a material uncertainty exists related lo events or conditions that may cast significant doubt on the tharity's ability to continue as a going concem. If we condude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate. to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However. futu events or conditions may cause the charity to cease to continue as a going concem. Evaluate the overall presentation, structure and content of the financial statements. including the disclosures. and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Page 13
Librarles Unlimited South West Independent Audito$ Report to the Members of Librarles Unlimited South West Use of our report This report is made solely to the chariiable companrfs trustees, 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 Ihe charty's trustees those matters VR are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone olher than the charitable company and its twstees as a body. for our audit work, for this report, or for the opinions we have fomied. Catherine Williams FCA DChA (Senior Statutory Auditor) For and on behalf of Westcotts (SW) LLP 47 Boutport street Bamstaple Dèvon EX31 1SQ Date:.2-. ...Q..ty*)}aQf &oz4 Page 14
Libraries Unlimited South West ststement of Financial Activities for the Year Ended 31 March 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestricted Designated Restricted funds funds funds £000 £000 £000 Total 2024 £000 Total 2023 £000 Note Income and Endowments from: Donalions and legacies Charitable activities Other trading activities Investment income 46 8.003 518 204 657 100 14 703 8.103 532 204 608 7.449 393 Total income 8.771 771 9,542 8.504 Expenditure on: Raising funds Charitable activities {47) 8.896) (21 (517) (49) (9.413) (153) (8,851 (9,004) Total expenditure Nel (expenditure)lincome Transfers batween funds 18,943) (519) (9,462) {172) 252 80 (500) 1,105 (900) (205) Net movement in funds 933 (goo) 47 80 (500) Reconclllatlon of funds Totsl funds brought fonvard 2.308 3,392 3.892 Totsl funds carried forward 21 3,241 231 3,472 3,392 All of the charity's activities derive from continulng operations during the above periods. The funds breakdown for 2023 is shown in note 21. The notes on pages 18 to 37 fomi an integral part of these financial statements. Page 15
Llbraries Unlimited South West (Registration number: 09822597) Balance Sheet as at 31 March 2024 2024 £000 2023 £000 Note Flxed assets Intangible assets Tangible assets Investments 14 15 16 233 595 190 263 190 1,018 457 Cuent assets Debtors Cash at bank and in hand 17 18 500 3,155 3,270 3.758 3.655 Creditors: Amounts falling due within one year 19 (1,3031 (720) Net current assets 2,455 2.935 Net assets 3,472 3.392 Funds of the charlty: Restrlcted income funds R8Stricted funds 231 184 Unrestrlcted Incoma funds Designated Funds General Funds 900 2,308 3,241 TotsS unrestricted funds 3,241 3.208 Total funds 21 3,472 3.392 Thèse financial statements have been prepared in accordan with the special provisions relating to companies subject io the small companies regirne within Part 15 of the Companies Act 2006. The financial statements on pages 15 to 37 were approved by the trustees. and authorised for issue on16 ptember 2024 and signed on their behalf by: Marie hadwick Chairman and Trustee Alex Kittow Chief Executive Officer and Trustee The notes on pages 18 to 37 fom an integral part of these financial statements. Page 16
Llbraries Unlimited South West Statement of Cash Flows for the Year Ended 31 March 2024 2024 £000 2023 £000 Note Cash flows from operatlng activities Net cash incomel(expenditure} Adjuslments to cash flows from non-cash items DepreGiation Amortisation 80 (500) 172 19 173 271 (326) Working capital adjustments Decrease in debtors Increasel(decrease) in creditors Increasel(decrease) in deferred income N8t cash flows from operating activiiies 17 19 12 506 77 503 (289) (35) (147} 866 Cash flows from investing actlvities Pur¢hase of intangible fixed assets Purchase of tangible fixed assets Net cash flows from investing activities Net Increasel(decrease) in cash and cash equivalents Cash and cash equivalents at 1 April Cash and cash equlvalents at 31 March 14 15 (248) (503) (1851 (751) 185 115 (332) 3,488 3,155 3,270 3,155 All of the cash flows are derived from conlinuing operations during the above two periods. The notes on pages 18 to 37 fomi an integral part of these financial statements. Page 17
Librarfes Unlimited South West Notes to the Financial Statements for the Year Ended 31 March 2024 1 Charity Status The charity is limited by guarantee, incorporated In England and Wales, and consequently does not have share capital. Each of the tnjstees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation. 2 Accounting policies Summary of significant accounting policies and key accounting estimates The principal accounts.ng policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented. unless otherwise stsled. Statement of compliance The financial statements hava been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Pradice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)). the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Ad 2006. Basis of preparatlon Libraries Unlimited South West meets the definition of a public beneffl entity under FRS 102. Assets and liablllties are initially recognised at historical cost or transactlon value unless otherwise stated in the relevant accounting policy notes. Golng concern The trustees consider that there are no material uncertainties about th6 charivs ability to continue as a going concem nor any slgnificant areas of uncertainly Ihat affect the carrying value of assats held by the charity. Statement of compllance The financial statemenls have been prepared in accordan with Accounting and Reporting by Charities: Statement of Recommended Practice {applit2ble to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Consolidation Libraries Unlimited South West Limited has a subsidiary company (Libraries Unlimited Enterprises Limited). The subsidiary has never traded and therefore consolidated accounts have not been prepared on the basis that the subsidiary is wholly immaterial to the group. Income and endowrnents All income is recognised once the charity has entiilement to the income, it is probable that the incomg will be received and the amount of th8 income receivable Can b8 measured reliably. Page 18
Llbraries Unlimited South West Notes to the Financial Statements for the Year Ended 31 March 2024 Donations and legacles Donations are recognised when the charity has been nolrfied in writing of both the amount and setuement date. In the event that a donation is subject to conditions thal requiie a level of perfofmance by the charity before the charity is entitled to the fvnds, the income is deferred and not recognised until either those conditions are fijlly meL or the fuifilment of those conditions is wholly within the control of Ihe charity and il is probable that these conditions will be fulfilled in the reporting period. Legacy gifts are recognised on a case by case basis following the grant of probate when the administratorlexecutor for the estate has communicated in wrstsng both the arnount and setuement date. In the event that the gift is in Ihe fonn of an assel olher than cash or a financial asset traded on a recognised stock exGhange. recconition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the tharity. Grants receivable Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the gnt and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be leased. Deferred income D8f8rred income represents amounts reiVed for future periods and is released to incoming reSoUrS in Ihe period for which, it has been received. Such income is only deferred when: - The donor specifies that the grant or donation must only be used in fLrture accountlng periods; or The donor has imposed Conditions which must be met before the charity has unconditional entitl8menL Investment income Dividends are recognised once the dividend has been derJar8d and notification has bèen received of the dividend due. Expenditure All expenditure is recognised once there is a legal or constructive obligatton to that expenditure, it is probable settlement is required and ihe amount can be measured reliably. All Gosts are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be direGtly attributed to partiajlar headings they have been allocated on a basis consistent with Ihe use of resources, with central staff costs alk)cated on the basis of time spent. and depreciation charges allocated on the portion of the asset's use. Other support c()sts are allocated based on Ihe spread of staff costs. Charitable activities Charitable expenditure comprises those costs incurred by the charity in the delivery of its aGtivities and services for its b8n8ficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nalure necessary to support them. Page 19
Librarles Unllmited South West Notes to the Financial Statements for the Year Ended 31 March 2024 Operating leases Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a Stight4Ine basis. Support costs 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. Goodwill Goodwill is amortised over its useful life. which shall not exceed ten years if a reliable estimate of the useful life cannot be made. Intangible assets Intangible assets are initially rerded at cost. and are subsequentty stated at cost less any accumulated amortisation and impaimi8nt losses. Any intangible assets c8med at revalued amounts, are recorded at the fair value at the date of revaluation, as detemiined by referen to an active market. less any subsequent accumulated amortisation and subsequent a¢¢umulated impalrment Ioss8S. Intangible assets a¢quirgd as part of a buslness comblnation are only re¢ognlsed separately from goodwill wh8n they arise from contractual or oth8r18gal rights, are separab18, the expected future economic benefits are probable and the cost or value can be measured reliably. Tangible fixed assets Tangible assets are initially recorded at cost, and subsequendy stated at cost less any accumulated depreciation and impairment losses. Fixed assets costing £1,000 or more are capitallsed at cost. Amortlsatlon Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected us8ful economic lrfe on a straight line basis as follows: Soare 3 to 4 years Goodwill 10 years Depreciation and amortisation Depreciat50n is provided on tangible fixed assets so as to write off the cost or valuation. less any estimated residual value. over their expected useful economic life as follows: 5 to 10 years (or length of lease if shorter) 3 to 4 years 3 years 3 to 5 years 3 to 7 years Building Improv8ments ICT Hardware Motor Vehides Operatlonal Equipment Flxture, Fittings and Equipment Page 20
Libraries Unllmlted South West Notes to the Financial Statements for the Year Ended 31 March 2024 Investment properties Investrnent property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers us8 observable market prices, adjusted if necessary for any difference in the nature. location or condition of the specrfic assel. Changes in fair value are recognised in profit or loss. Cash and cash equivalents Cash and cash 8quivalents comprise cash on hand and call deposits, and Other short-term highly liquid investments that are readity convertible to a known amount of cash and are subject to an insignificant risk of change in value. Fund Structure Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity. Designated funds are unrestricted funds set aside for sp8crfic PuOseS at the discretion of the trustees. Restricted income funds ar8 those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. Deflned contrlbutlon plans Contributions to defined contribution plans are recognised as an expense in the period in which the related setvice is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly withln 12 months of the end of the reporting date in which the empkjyees render the related service, the liability is measured on a dlscounted present value basis. Th8 unwinding of the discount is recognised as an expense in the period in which it arises. Flnancial instruments Classification Financial assets and financial liabilities are recognised when the charity be¢ornes a party to the contractual provisions of the instrument. Financial liabilities ar¢d equity instwments are dassified according to the substance of the contractual arrangements entered Into. An equity instrument is any contract that evidences a residual Interest in the assets of the Charity aft8r deducting all of its liabilitles. Pag8 21
Libraries Unlimited South West Notes to the Financial Statements for the Year Ended 31 March 2024 Recognition and measuTrment All financial assets and liabilities are initially mèasured at transaction price (including transaction costs). except for those financial assets classified as at fair value through profit or loss. which are initially measured at fair value (which is nomally the transaction price exduding transaction costs), unless the arrangemènt constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at Ihe present value of Ihe future payments discounted at a market rate of interest for a sirnilar debt instwment. Financial assets and liabilities are only offset in the ststement of financial position wh8n, and only when there exists a legally enforceable rlght to set off the recognised amounts and the charlty Intends either to settle on a net basis, or to realise the asset and settle the liability simultaneousty. Financial assets are derecognised when and only when a) the Contractual rights to the Cash flows from the financial asset expire or are settl8d, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financlal asset, or c) the charlty, despite having retalned some, but not all, significant risks and rewards of ownership. has transferred control of the asset to another party. Financlal Ilabilltles are d8recognised only when the obligation speclfied in the contract is dlscharged, cancelled or expires. Investments Investments in non-convertible preference shares and non-puttable ordinary or pr8fer8nce shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value Ihrough profrt or loss. Where fair valu8 cannot be measured relbly, investments are measured at cost less impairment. Investrnents in subsidiaries and associates are measured at cost less impairment. For investments in subsidiarles acquired for wnsideration Including the issue of shares qualifying for merger rellef, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored. 3 Income from donatlons and legacies Unrestricted funds General £000 Restricted funds £000 Total 2024 £000 Donatlons Donations Legacies Grants British Library Grants Art Council Eng18nd Other 43 52 263 375 263 377 46 657 703 Page 22
Libraries Unlimlted South West Notes to the Financial Statements for the Year Ended 31 March 2024 Unrestrlctsd funds General £000 Restrictsd funds £000 Total 2023 £000 Donations Donations Grants British Library Grants Art CounGiI England other 111 115 20 186 287 20 186 287 111 497 608 4 Income from charitable adivities Unrestrictod fvnds General £000 7.687 151 104 Restricted funds £000 100 Total 2024 £000 7,787 151 104 Local Authorlty contracts Service user payments & collection fees Printing & Photocopying income other income Membershlp and subscriptions 59 59 8,003 100 8.103 Unrestrlcted funds General £000 7.166 188 77 18 Restricted funds £000 Total 2023 £000 7.166 188 77 18 Local Authority contracts Service user payments & collection fees Printing & Photocopying income other income 7.449 7,449 Page 23
Librarles Unlimited South West Notes to the Financial Statements for the Year Ended 31 March 2024 S Income from other trading actlvltles UnrestrlGted funds General Restricted funds £000 14 Total 2024 £000 93 18 Retail income Other trading income Catgring Room hire 79 18 420 420 518 14 532 Unrestricted funds General £000 26 13 Restricted funds £000 12 Total 2023 £000 38 13 Retail income Other trading income Catering Room hire 335 335 381 12 393 6 Investment income Unrestrlcted funds General £000 189 15 Total 2024 £000 189 15 Bank interest receivable Income from investment property 204 204 Unrestricted funds General £000 36 18 Total 2023 £000 36 18 Bank interest receivable Income from investment property Page 24
Llbraries Unlimited South West Notes to the Financial Statements for the Year Ended 31 March 2024 7 Expendlture on ralslng funds a) Costs of trading activlties Unrestrlcted funds General £000 36 Restricted funds Total 2024 £000 38 Costs of other trading activities 36 38 Unrestricted fvnds General Restricted funds £000 Total 2023 £000 142 Costs of other trading activities 139 139 142 b) Investmont management costs Unrestrictsd funds General £000 11 Totsl 2024 £000 11 Property management fees Unrestricted funds General £000 Total 2023 £000 Property management fees 11 Page 25
Llbrarfes Unlimited South West Notes to the Financlal Statements for the Year Ended 31 March 2024 8 Expendlture on charitable activitles Unrestricted funds General Restricted funds £000 329 188 Total 2024 £000 Note Charitable activities Allocated support costs 8.616 280 468 8.896 517 9.413 Unrestricted funds General £000 7.757 234 Restricted funds £000 532 328 Total 2023 £000 8,289 562 Note Charitable activitses Allocated support costs 7.992 860 8.851 Page 26
Libraries Unlimited South West Notes to the Financial Statements for the Year Ended 31 March 2024 9 Analysis of support eosts Support costs allocated to charitable activities Total 2024 £000 116 99 Total 2023 £000 130 254 35 143 Communications and IT General offi Auditors remuneration Other support costs 245 468 562 10 Nel Incomingloutgoing resources Net incomin(ouÈg0ing) resources for the year indude- 2024 £000 172 2023 £000 172 Depreciation of tangible fixed assets Depreciation of inlangible fixed assets 11 Trustees remuneration and expenses None of the trustees are remunerated for their services as truste8s. but the Chief Executive and staff trustees were paid in respect of their employment with the ch8rity (as permitted by the Memorandum & Artides of Association) Th& remuneration of the Chief Executive was betrNeen £80,000 and £90,000 (2023: £80,000 & £90,000) including pension conlributions. No other employees earned mc*e than £60,000. In the year ended 31 March 2024, Iwo staff trustees were paid between £20.000 and £30,000 each. In the previous year two staff trustees were paid between £20 000 and £30 000. During the reporting period. the tharily paid expenses totalling £870 to six trustees (2023: £903 to three trustees) primarily in relation to travel and subsisten. The key management personnel comprise Ihe Trustees in their roles as Trustses, Chief Executive and four Heads of Service covering the folbwing areas. Service delivery, Finance, People & Operations and Commercial & Innovation. The aggregate employee beneffts payable to key management personnel for the reporting perlod was £354,000 (2023: £315.000). During 2023 the CFO was only in plac8 for 6 months. Page 27
Libraries Unlimited South West Notes to the Financial Statements for the Year Ended 31 March 2024 12 Staff costs The aggregate payToII costs were as follows: 2024 2023 £000 staff costs durfng the year were: Wages and salaries Social security costs Pension costs 5,271 340 354 4,948 329 356 5,965 5,633 The average head count of employees during the year was 371 (2023: 3831. The average number of full-time equivalent employees during the year is analysed as fdlows: 2024 No 129 50 2023 Library stsff Management, service, development and support servlc8S 129 57 179 186 13 Auditors. remuneratlon 2024 £000 2023 £000 35 Auditors remuneration 14 Intangible fixed assets Goodwlll £000 Software £000 Total £000 Cost At 1 April 2023 Additions 73 123 73 126 At 31 March 2024 126 196 322 Amortisation At 1 April 2023 Charge for Ihe year At 31 March 2024 70 10 70 19 80 89 Net book value At 31 March 2024 118 116 233 At 31 March 2023 Page 28
Libraries Unlimited South West Notes to the Flnanclal Statements for the Year Ended 31 March 2024 15 Tanglble flxed assets Fixtures and Fittings £000 Motor vehicles £000 Equipment £000 Furniture £000 Total £000 Cost At 1 April 2023 Additions 19 35 293 460 214 43 561 503 At 31 Marth 2024 19 35 753 257 1.065 Depreciation At 1 April 2023 Charge for Ihe year 19 14 163 103 21 91 59 172 At 31 March 2024 19 35 254 162 470 Net book value At 31 March 2024 499 95 595 At 31 March 2023 21 131 111 263 Page 29
Libraries Unlimited South West Notes to the Financial Statements for the Year Ended 31 March 2024 16 Flxed assat investments Investment propertles Inveslment property £000 Cost or Valuation At 1 April 2023 190 Provlsion At 31 March 2024 Net book value At 31 March 2024 190 At 31 Marth 2023 190 All investments shown above are held at valuation. The investment property was revalued in April 2022 by an independent valuer, Luscombe Maye. The value of the property was based on market value. the Trustses have confirmed the valuatlon remains approprtate as at 31 March 2024. 17 Debtors 2024 £000 136 267 2023 £000 72 259 85 Trade debtors Prepayments Accrued income Other debtors 51 500 18 Cash and Gash equivalents 2024 £000 3.270 2023 £000 3.155 Cash at bank Page 30
Librarfes Unlimited South West Notes to the Financial Statements for the Year Ended 31 March 2024 19 Creditors: amounts falllng du8 within one year 2024 £000 450 397 53 2023 £000 Trade creditors Other taxation and social security Other creditors Accruals Deferred income 296 56 144 42 119 1,303 720 2024 £000 2023 £000 Deferred income As at 1 April 2023 Amount released to incoming resources Amount deferred in the year Deferred income at year @rKI 42 (42) 119 (77) 42 119 42 20 Penslon and other post retirement beneflts The Organisation participates In three pension schemes: Defined benefit pension schem88 Devon County Council Staff that transferred ulld8r TUPE to Libraries Unlimited on 1 April 2016 are entitled to participate in the local Government Pension SGheme (LGPS) as administered by Devon County Council. Libraries Unlimited participates in this scheme on a closed admission basis. and staff participation is limited to contributing employees at 1 April 2016. The LGPS is a contribution based funded defined benefft scheme that currently provides retirement benefits based on career average revalued salary and lengih of service in employment. Subject to rtain conditions. which Libraries Unlimited has fully complied with in 2023124, Devon County Council acts as guarantor to the pension scheme. Under Ihis arrangement Libraries Unlimited's liability is capped at the payments actually made under triennial revaluation and the funding risk remains with Devon County Counal. Pension $ts are therefor8 accounted for as in a defined wntribution schem8. Employer contribution rates into this scheme amount to 12Yo of pensionable pay in 2023124, wilh employee contributions ranging from 5.5Yo to 12.5 % dependant on salary. Page 31
Libraries Unlimited South West Notes to the Financial Statements for the Year Ended 31 March 2024 Torbay Council Stsff that transferred under TUPE to Libraries Unlimited on 1 April 2018 are entilled to partiapate in the Local Government Pension Scheme (LGPS) as administered by Torbay Council. Libraries Unlimited participates in this sdieme on a closed admission basis, and stsff participallon is a contributlon based funded defined benefit scheme that cuentlY provides retlrement benefrts based on career average, revalued salary and length of seNice in employment. Subj8Ct to certain conditions. which Libraries Unlimited has fully complled with in 2023124, Torbay Council acts as guarantor to the Pension Scheme. Under this arrangem8nt Libraries Unlimited's liability is Capped at the payments actually made undar triennial revalualion. and the funding risk rèmains with Torbay Council. Pension costs are Iherefore accounted for as in a defined contribution scheme. Employer contribution rdtes into this scheme amount to 120/0 of pensionable pay in 2023124, with employee contributions ranging from 5.5% to 12.5¥0 dependant on salary. At 31 March 2024, 129 employees (2023: 1 $1 employees) participated in the scheme and employerfs costs charged to the Statement of Financial Activities, amounted to £194k (2023: £209k). Defined Contribution Scheme Devon staff that commenced employment after 31 March 2016 and Torbay staff that commenced employment after 31 March 2018 participatè in the Flexible Retirement Plan administered by TPT Retirement Sdutions (formerly the Pensions Trust). This is a defined contrtbution pension scheme. Under this scheme. the employer matches employees, contributions up to 60h of pensionable pay. At 31 March 2024. 181 empbyees (2023: 216 employees) participated in the scheme and employe¢s costs charged to the Ststem8nt of Financial Activities amounted to £160k {2023: £145k). 21 Funds Balance at 1 April 2023 £000 Balance at 31 March 2024 £000 Incoming Resources resources expended £000 £000 Transfers £000 Unrestrl¢ted funds General General Funds 2,308 8,771 (8,943) 1,105 3,241 Designated Property development Infrastructure Project development 250 500 150 (250) (500) (150) (900) 900 Total unrestrlcted funds 3.208 8,943 205 3,241 Page 32
Libraries Unlimited South West Notes to the Financial Statements for the Year Ended 31 March 2024 Balance at 1 April 2023 £000 Balance at 31 March 2024 £000 Incoming Resources resources oxpended £000 £000 Transfers £000 Restricted funds British Library Arts Counal Good Things Foundation other Purchase of Kiosks (DCC Funding) Reminisnce Project (Crediton) Libraries On Funding Torridge - Know Your Neighbourhood Workhubs (Work Club Funding) Workhubs (Multiply) She Started It Decarbonisation Project5 (59) (219) (6) (123) 35 263 (2) 77 89 105 71 100 (100) 14 106 (6) (2} (103) 35 (6} 29 37 17 10 75 (25) (18) (5) (52) (519) 12 23 771 (205) 231 Total funds 3,392 9,542 9,462 3,472 Balance at 31 March 2023 £000 Balance at 1 April 2022 Incoming resources £000 ResOUe8 expended Unrostricted funds General General Funds 2.454 7,995 {8.141) 2,308 Deslgnated Propety development Infrastructure Project development 250 500 150 250 500 150 900 900 Total unrestricted funds 3,354 7.995 (8,141) 3.208 Page 33
Libraries Unlimited South West Notes to the Financial Statements for the Year Ended 31 March 2024 Balance at 31 lJJarch 2023 £000 Balance at 1 Aprll 2022 £000 Incoming resources £000 Resources expended £000 Restricted funds British Library Arts Council Good Things Foundation Other 347 49 21 121 20 198 (313) (211) (15) {323) (863) 54 35 291 89 538 509 Total funds 3.892 8,504 (9,004) 3.392 Designated Fund.5 The purpose of the designated funds wa5 to support property development. primarily focused on purchasing new buildings. to explore new business initiatives, including potential strategic partnerships and to focus on upgrading and replacing infRstruciur8, for example self-service kiosks and IT equipment. In line with the trustees new reserves policy the funds previously designated have b88n transferred bad( to general funds during 2024. Page 34
Libraries Unlimlted South West Notes to the Financial Statements for the Year Ended 31 March 2024 Purpose o.f restrict_ed_f.un.ds Art's Council funding as an NPO in respect of Creative Communities. This is the programme of cultural activity in our libraries supported by the Arts Council England (ACE) National Portfolio Organisation (NPO) funding and Exeter City Council. It brings together a wide range of creative events to communities across Devon and Torbay. Purchase of kiosks - this is a contribution from Devon County Council towards the installation of new customer kiosks in all librari85 across Devon. It has been transferred to unrestricted funds at the year-end as the restriclton on the fijnds has been litted due to the outright purchase of the kiosks. Reminiscence Project (Crediton) awarded by the National Lottery Heritage Fund to fund to establish and deliver at least 5 monthly reminiscence groups and deliver of an outreach and ollections engagement programme. Libraries On Funding ACE has awarded the British Library a grant to run a grant programme enabling local library services to upgrade their website and local digital presence, to enhance library service buy in and public benefit, and to Gontribute to the national impact and sustainability of the proposal. Libraries Unlimited has used this funding to establish a new online system for room bookings and also set up a new websila for the Secret Book Quest. It has been transferred to unrestricted funds at the year-end as the restriction on the funds has been lifted due to the outright purchase of the necessary assets. Torrldgè (Know Your Neighbourhood) - a package of funding from the Department for Culture, Media and Sport {DCMS), designed to widen participation in volunteering and tsckle lon@liness in 27 disadvantaged areas across England. Our participation is coordinated via Libraries Connected. Workhubs joint venture with Devon County Council to establish refug8e-friendly work clubs in libraries across Devon. Decart)onisation Projects - funding from West Devon and South Hams to develop decarbonisallon plans wilh businesses, helping them to innovate and achieve clean growth as part of the UK Shared Prosperity Fund's local business investment priorty Frlends Groups - To support individual libraries to enhance thelr community. Other- this includes a number of smaller grants expended during the year and does include initiatives around warm spaces. growing Gommunities and locality Funding (small grants given by individual councillors. this enables them to use their local knowledge to support local projects being run through our libraries). Page 35
Llbraries Unlimited South West Notes to the Financial Statements for the Year Ended 31 March 2024 22 Analysls of net assets between funds Unrestrfctad funds General £000 233 595 190 3.527 (1.303) 3.241 Total funds at 31 March 2024 £000 233 595 190 3.758 (1.303 3.472 Restricted funds £000 Intangible fixed assets Tangible fixed assets Fixed asset investments Current assets Current liabilities 231 Total net assets 231 Totsl funds at 31 March 2023 £000 Unrestricted fvnds General Designated £000 £000 Restrfcted funds £000 Intangible fixed assets Tangible fixed assets Fixed asset investmenls Current assets Current liabilities 263 190 2.571 (720) 2,308 263 190 3,855 (720) 3,392 900 Total net assets 900 Page 36
Libraries Unlimited South West Notes to the Financial Statements for the Year Ended 31 March 2024 23 Agency arrangements The Charity receives grant income from Devon County Council and Torbay CouncII as agent in respect of the purchase of books and other resources. In the accounting year ended 31 March 2024 the charity receiv8d £597,614 (2023". £645.700) and disbursed £614,43512023.. £589,804) from the fund. An arnount of £51,388 (2023.. £84,704) is Included within debtors and £nil {2023: £11.600) is induded in creditors relating to these funds 24 Obligatlons under leases and hire purchase contracts Operating lease commitments Total future minimum lease payrnents under non-canGellable operating leases are as follows: 2024 £000 2023 £000 Other Within one year Beeen one and five years After five years 137 172 117 89 191 136 427 416 25 Related party transactions There were no related paty transactions in the year. Page 37