Charlty règl#tratlon number 1184638 Company roglstratlon number 11592194 (England and Wal0$1 GRANTA TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
GRANTA TRUST LEGAL AND ADMINISTRATIVE INFORMATION Sigrid Rau$lng Ran8 Dasgupta Gwe Prochnlk IWlnt•d 1 Juty 20221 (Appoinied 1 December 20221 Charlty numb•r 1184638 Company numbèr 11592194 Reglst•r•d offl 12 Addison Avènue London UK W114QR Audltor Bd9ht Graham& Murray Emperols G818 114a Cromwall Road Kensington London SW7 4AG
GRANTA TRUST CONTENTS Page Trustees, report ststement ol trustees, wsptsnsibilities Ind&pondanl audilorfs report Statement of flnanelal 8ellvities Summary income and expenditure 8ccouni Balance sheet Notes to the financial statements
GRANTA TRUST TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022 Tho trustees pr080nt thoirannual teport and finan(ial stglaments for the yoar ended 31 DeCemr 2022. The financial stslemgnts have beèn prep8red In accord8nce with the accounting pollcles set out in not& 1 to the financial statements and compty with the Trust's Articles, the Companies Act 2006 and "Accountlng and Reporting by Charities." Ststemenl of R8Mmended Pradice applicable to ch8rili&$ preparing their accouAls in aKdanc& Ih the Flnancial Reporting Stsndard applicable in Ihe UK and Rèpubllc of Ireland IFRS 10211gffectiv& 1 January 20191". Obl•ctlves and actlvlties The Trusfs objects are: th8 adVanCent of the Ilterary arts, in partiCLl8r the promtstlon of nèw and 8mergSng wrtUThJ 8nd tho 8dvanc8mtrnt ol educalw)n through ¢he promtion ol lirary and literacy culiuS. The Iru8lees have pald due r•gard lo guld8nc& Issued by the Charty Commi98ion In dècidlng wh81 activltl8$ the Trusl shoukl Urertake. Achl•v•rnent8 •nd p•rforni•ne• Flnanclal r8vIow Trustees have reviewed the resorves policy in the li9hl of the substanlial donations receiv1 by the Trusl in this 8¢counting perwxl. These donations provKle th& Trust an exp&ndatAe gnotswment which 11 gen&ratè inveslment income to support the charitable activ.5. It Is the trust8gs' inlenbon that Ihg capital ghouhj b8 presarved lo m8lntain thg lev81 of investment income, but the capltsl is expandable in ¢as6 of urgent and unforèseen ne&d. and wlll allow the Trust's current aetlvltles to be sustained while tonsideratlon Is given lo ways In which 8dditional funds may be r8ised. Trustees therefore consider Ihgt reserv&s Should b& limited to an amount appropriaie to the TrLtst's woiking C8Pital neods and have maintained Ihis level of r¢serves throughout the year. Inv•tm•nt Pollcy Trustees revi8wed thè options availablè lor investment ol the expend8ble endowrnent and Selected iho CCLA'S Ethical Fund. Trusie¢s recelvg regular roports from the CCL4 and meel annually with tts r&presenlalive. Cash balances t)ot imm•dialely na8<1 ai8 8¢6 on short t8mi deposit when th8$& 8re available at more than a nots.onal ratg of Intorèst. Rlsk manAgom•nt The trustees have assessed th& major f*k8 to which ihe Trust is gxp)8ed. and are satisfaed that sy$lem8 are In p&¢e to nmbgate &xFosure to the major risky. PIAn• ft+r fu¢ur• porlods For the earfy years of thg Trust's operations, trustees. focus will bg on ov&r8ight of tha op8raling bu8iness, to 881i8fy th8mselvtrs thal It Is operab'ng éffectively and In a way ¢hat fulfils th? Trust's tharftsbl• purtJxe8. StrUUl0, gov•mane8 and m•n•gem•nt Granta Tiusl is a company Ilmlled by gu8ranle&. Itls govern&d by its M•morandum and Articles olA8soclatlon. R•lat•d Partles and Confll¢t8 of Int•r•$t None ol the ¢ruslees received femijneralion or olher ben8fils lor Iheir for the ch8rity olher Ihan Ihose dis¢h)sed in note 8 to Ihe accounts. Any transactions bth8sn the Trust gfKI th8 truste88 or s8nv)r manag•ment or r8b partles must be disclosed lo th8 Board. 081816 of relaitsd paty trar&8adons are dlsclosed in not• 19 to th• a¢counts. Trusrees are rnqulred to dl8¢k)se all relovant inlere$¢s and rogister Ih&m annu8lly with tho Trust's administration. and in accord8nce with Iho Trust's Conflict ol Int¢resl Policy lo wilhdr8w from ¢J¢s1OnS wh¢r• a conllicl ol interest arise8.
GRANTA TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Sigrid Rausing Jeremy Hardie (Resigned 30 September 2022) Lisa Appignanesi (Resigned 31 December 2022) Rana Dasgupta (Appointed 1 July .2022) George Prochnik (Appointed 1 December 2022)
Jeremy Hardie and Lisa Appignanesi both retired as trustees during the year. Trustees and staff alike owe them both a debt of gratitude for their wise and enthusiastic guidance since the Trust's inception, and thank them warmly for their committed service.
Details of method of recruitment and appointment of trustees
Trustees are appointed to the board on the basis of their skills and experience in either the literary or charitable field. Trustee appointments are for an initial period of three years.
Supplier Payment Policy
The company's current policy concerning the payment of trade creditors is to follow the CBl's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1 DU).
The company's current policy concerning the payment of trade creditors is to:
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settle the terms of payment with suppliers when agreeing the terms of each transaction;
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ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
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pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the company at the period end were equivalent to 31 days' purchases, based on the daily amount invoiced by suppliers during the period.
Details of organisational structure
Granta Trust employs eight staff to edit and sell the magazine, and to edit the poetry list. Other functions, including contract administration, production, marketing and publicity, finance and IT are outsourced to Granta Publications, which charges for time spent on the Trust's operations. The day to day management of the operations of the Trust is overseen by the Executive Management Board, which reports regularly to trustees.
The Trustees consider that the Board of Trustees, the Editor and Deputy Editor comprise the key management personnel of the charity in charge of directing and controlling the charity and its day to day operation.
Auditor
In accordance with the company's articles, a resolution proposing that Bright Grahame Murray be reappointed as auditor of the company will be put at a General Meeting.
Principal Office
The address of the principal office of the charity is 12 Addison Avenue, London, W11 4QR.
The trustees' report was approved by the Board of Trustees.
Sigrid Rausing
Sigrid Rausing Trustee
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GRANTA TRUST STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2022 The tNs19es, who are also th8 directors of Granta Tru8t for the purF4)se of company law. ar8 responsible for preparing the Trustees, Report and the financial siatemenl$ in accordance with applicabl&18w and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Pracllcèl. Company Law qUIreS th¢ trustees to prepare financi81 statements for each financial ytrar which give a true and fair vièw of the state of affairs of the Trust an(1 of the incoming resources and application of resources, induding th& inc0rn8 and expenditurè, ol the charitable company ft)r that year. In prepartrhg these financial stat8ments, the tnjstees am rèqulred to.. select sullable accounb'ng poli¢i¢s and then apply them con$istendy', obsaN¥ Ihg rn8lhods and prfnclples in the Charities SORP.. maka judgements and esllmat&s that are reasonable and prud8nl'. stalg wh&lh8r applicable UK Accounting Standards have be&n followed. subject to any maierial departyrès diselosad and explained in th¢ financi81 $18tements', and prepare th6 fin8n¢ial statements on thè going concem basis unless Is Inappropri8t8 to presume that the Trust will continue in opèration. The trustees ar& sponsible for keeping adequate accounting records that disclose with reasonable accuracy al any time the lin8nci81 position of the Trust and enalAe them to ensura that th8 financial sl8lemenls comply with the Companlos Act 2006. They ale also r85ponsible for safeguarding the assets of the Trust and hence for taking reasonablè steps for the prevention and detection of fraud and other Irregularitles.
GRANTA TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF GRANTA TRUST Oplnion We have audited the financi815tatements of Granta Tiust Ilhfl 'TrLJsI'I for the year ended 31 D8cÉmb8r 2022 which comprise Ihe st81em&nl ol financi81 aclivilies, the summary income and exp?ndilure account, the balance sheet, the statement ol cash flows and noltss to the financial statements, including significant accounting policies. The financial reporting framework that ha5 been appliad in their preparation is applicable law and United Kingdom Accounting Standards, including Flnaneial Reporting Standard 102 The Financl&l Reporting Slandard appllcabl& in th8 UK and Republlc of Ireland Iunltèd Klngdorn Gen&rallyAccepted Accountlng Practice). In our opinion, the financi81 stst8m8nts'. glve a irue and fail vlèw of the state of the charitable company's affalrs as at 31 December 2022 and tsf its incoming r88Durces and application of resourcès, for the year then ended., have be8n prop8rfy prepared in accordance with United Kingdom Gen8rally Acceptod Accounting Practice,. and have beèn prepared in accordan with the requiremènts of the Companies Act 2006. Basis for oplnion Wè conducted our audbt in 8ccordance with Int8rn8tional Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Audilors responsibilities for the audit ol the financial statemertls section of our pOrt. We are independent of the Trust in accordance with the ethio81 requirements that are relevant to our audit of the financial stataments in Ihg UK, including the FRC'S Ethical Standard, and wa havg fulfilled our othar elhifjal responsibilities In accordance with these requirements. We b81ieve that the audit •vid8nce we have obtain*d is sufficient and appropriata to provide a basis for our opinion. Concluslons relatbng to going conc8rn In auditing the financial statement5, we havè concluded that the trusteas, us8 of the golng concem basis of 8ecounting in the preparation ol the financial stalèmènls 15 appropriate. Based on tho work wa have performad, wo havg not identified any mat8rial uncgrt8inli88 rèlating to 8venls or conditions that, individually Of colleclively, may cgsl significant doubt on tha Trust's 9bility lo continLte as a going ¢oncern for a perlod of at least twelve months Irorn when Ihe financial stalemants arg aulhorised for issue. Ou¥ responsibilities and the responsibiliti8s of the tnjslees with respect to goin9 ncern are described in thg relevant sections of this report. Oth•r Informatlon Th8 other inlomalion comprises the information includod in the annual report oiher than the fin8nci81 statements and our auditor's r6port thereon. The trustees alè responsible for the other information contained within the annual report. Our opinlon on th9 financial statements doss not Cover th8 other information and we do not 8xprgss any form of assurance conclusion thereon. Our responsibility is to read the other informatlon and, in doing so, consider whether the other information is materially inconsistent with the financial slatemenls or our kllowl8dg8 obiained in the wurse of the audit. or otherwise appears to be materially misstatgd. If we identify such rnalerial inconsistencies or aPPaTent material misstatements, we are required to determine whether this gives rise to a material misstatement in th8 financial statements them581ves. If. based on the work ws hav8 performed, we conclude that there is malerial misslalernent of this othèr Information, we are required to raport that fact. Wè h8Vè nothing io report in this regard. Matter$ on whlch we aro rèqulrad to report by exceptlon We have nothing lo report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you il. in our opinion.. Ihe infomiatlon glv8n In th$ flnancial slalemenls Is Inconsistent In any matarlal raspsct wlth thè Iw$lg8s' report., or sufficient accounting records have not been kepl., or the fflnanclal stat8m8nts are not in agreement wlth th8 accounting re(x)rds', or wè hav8 not received all the inftsm81ion and 8XanationS we require for our audit.
GRANTA TRUST INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF GRANTA TRUST Responsibiliti68 of tru¥tees As explained more fully In the statement of trust&es' responsibilities, thè trustees. who are also the dlreetors of the Trust lor the purpos8 of company 18w, are responsible for the preparation ol the fin8n¢ial statements and for being salisfied that they give a true and fair view, and for such inlernal control as Ihe trustees determine is necessary to enaNe the preparation of financial statements that are free from material misstatem8ril, whether due to frau¢J or error. In preparing the financial stat8ments, the trustees ar8 responsible for assessing th8 Trust's ability to contlnuè as a going concern, disclosing, as applicable, matters related to 90ing concem and uslng th8 going concem basis ol ccounling unless th8 trustees either intend to liquidate the eharitable company tsr lo cèase op8rations, or have no realistic alternative but to do so. Audltor's rèsponslblllllos for th• audlt gf tho flnanclal statement$ We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with thg Aet and relevant regulations made or having effect Ihereunder. Our objectives are to obtairb reasonable assuranc8 about whether the financial statements as a whole are frè6 from materi31 misslalement, whether due lo fraud or trrror. and to issue an auditorfs report thal includes our opinion. Reasonable assurance is a high level of assuranee bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always d8ted 8 rnaterial misstatem8nl when il exists. Misstat•m8nts c8n 8rise from fraud or error and are considered mat8ri81 if, individually or in th8 aggregate, they could raason8bly bg expected to influenc6 the 6eonomic decisions ol users taken on the basls of th8se financial statements. Tha extent lo which our proogdure5 are capabl8 of delgcting irregularities. induding fraud, is detailed b810w. Extent to whlch our procedures arè capkble of dgtoctlng Irr•guloritl•s, ineluding fraud. We identify and assess the risks of material misststemerbl of the financjal statem8nts, whether due to fraud or erior, and th8n design and perform audit procedures rèsponsive lo those risks, Includlng obtaining audit evidence that Is sufflclént and appropriate t() provide a basis for our oplnion. In id8ntrfying and addressing risks of matenal tllisstslement in respect of irr8gulariligs, including fraud and non- compliance with laws and r8gulalions, our procedur85 included the following.. We obtained an understanding ol laws and regulations that affect the Charity. focusing on those that had 8 direct effect on the financial statements or that had a fundamental effo¢1 on its operations. Key laws and r8gulations that we identified indud8d th8 tax legislation, Charilios Act. W8 enquired ol the trustee5 and reviewbd tnJstee5' meeting minutès for evidence of non-compliance with r818vanl laws 8nd règulab'ons. We also rèviewed controls the trustè&9 h8vg in place to ensure complianca. We gained an understanding of and evaluated the controls that the Iruslees have in placa lo prtrvgnl and d8tecl fraud. W8 enquired of the mernb8r5 about any Incldencès ol fraud that had taken place during the accoLJnling period. The risk ol fraud and non-compliance with laws and r8gulalions and fraud was discussed within the audit taam and tests were pJann8d and performed to address these risks. We identifi•d th8 potential lor fraud in th6 following aieas.. incorn8 r8cognition, management override, misappropriatlon of assèts. We reviewed financial statements disdosures and test6d tr) SLJPF)orting documentallon to 8S$èg8 Complian with relevant laws and regulations discussed above. We enqui(1 of Ihg trustees about actual and potential litigation and cl81fflS. We performed analyti1 procedures to Id8ntify any unusual or unexpected relationships that Might indlcate risks ol rnaterial mis$t8t8tnenl due to fraud. In addressing the risk of fraud due to management override of internal controls wè t8st8d th8 appropriateness ol journal entries and assessèd wh8thgT Ihg judgements mad8 In making accountlng estimat85 were indicativè of a potential bias.
GRANTA TRUST INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF GRANTA TRUST Due lo the inharènt limitations of an audit, there Is an unavoidab18 risk th&1 wg may not hav8 dètect8d 8ome material misstat&Fnenl8 in the financial 51alements. even though w8 hava proporty planned and porformgd our audit In accord8nca wlth auditing standard5. For example. as with any audit, there remained a hlgher risk ol non418tècllon of IrrUlarItie$, as these may involv& ¢ollusion, forgery, intentional omissions, misiopresentalions. or Ihe override of internal conlro15. We are not resp(bn8ible lor preventing fraud or non-complian¢e with laws wul8tions and cannot be expe¢led to detect all fraud and non-compliance with laws and règulations A lurthef d8scription of our rèspon5ibilities Is av8I18blè on the Fin8ncial Rèporling Council s websit6 at., httpsjl www.Irc.or9.uklaudilorsre$ponsibilities. This desuiplion forrrs parl ol our audilorfs report. Use of our roport This report is made sololy to the ch8rity's Irusle&s, as a b$y, in accordanca with p8rt 4 01 the chanb.es (Account5 and Report51 Regulations 2008. Our audit work has been undertakèn so that W8 mighl stale to tho oharity's Irtistee5 those Matt we are requir8d to 81al8 to them In an auditorfs report and ftsr nD Other purpose. To the full8st exlent permltted by law. w& do not aCC8Pt or assume raspofisibility to anyone othèr than thg charity and the charity's trustees as 8 body. for our audit work, for Ihis report. or for the opinions we havg fomgd. Brlan Cllfford IS•nior Statutory Auditor for and on behalf of Brlght Grahame Murray Charterod Accountsnts Statutory Auditor Empeiofs Gate 114a C¥omwell Road Kensington London SW7 4AG Bright Grahamg Murray is ellglble for appointment as Auditor of the Trust by vlrtua of Its ellglbllty for appolntmant 89 Auditor of a company under section 1212 of the Companies Act 2006.
GRANTA TRUST STATEMENT OF FINANCIALACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022 Unrgstrl¢tgd Endowment funds fund$ 2022 2022 Total Unrestrlct•d funds 2021 2022 Not•s ncomè from: Don8tion5. endowmanls and legacies Charitable activities Investments 500,000 538,549 134,267 9,850,973 10.350,973 538,549 134,267 466,850 753,647 Total Income and endowm&nts 1,172.816 9,850,973 11,023,789 1,220,497 Ex endi ur¢ on.. Charitable activit185 1,067.161 1,067,161 1,377.299 Nat gain8lllossesl on Invèstments 10 1735.0531 1735,0531 Net Incomlnglltsutgolngl resoure•s 105,655 9,115,920 9.221,575 1156,8021 Othgr r&eognised galns and lo$$•s Other gains or10gs8$ 11 1.426 1,428 11,6301 Net mov•mgnt in funds 107,081 9,115,920 9.223,001 1158,4321 Fund bèl8nc88 at 1 January 2022 3,628 1.628 160,060 Fund balances at 31 0èc•mber 2022 108,709 9,115.920 9,224,629 1.628 The statement of financial actlvitlès include5 all gains and k>sses recognised in the year. l income and expenditure deriv9 from continuing 8etivilies.
GRANTA TRUST SUMMARY INCOME AND EXPENDITUREACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022 All income funds 2022 2021 Gross income 1,172.816 1,220,497 Totsl expenditurg from income fund8 1.067,161 1.377,299 Net Incom•ll¢xpgndlturel for lh• year 105,655 1156,8021
GRANTA TRUST BALANCE SHEET AS A T 31 DECEMBER 2022 2022 2021 Not•s Flxèd a¥$et8 Tangle a998ts Investmtrnts 13 14 17,686 8.264.947 32,319 8.282,613 32,319 Currènt asgets Stocks Debtors Cash at bank and In han Is 42,629 429,244 918.657 34.336 258,874 118.768 1.390.530 411,978 Credltors.. amounts falllng dué wlthln one yèar 17 1448,5141 1442.6691 N8t current asset(18bllllieSI 942,016 130,6911 Total assets h8$ Crrent Ilabllltles 9,224.629 1.628 Capltal fund$ Endowment funds- gèner81 Incomè Ivrtds Unrestricted funds 9.11 5.920 106.709 1,628 9,224,629 1,628 The company Is enllllèd to the exernplbn trom th& au¢Jit rli1rMent contalned In Socllon 477 of the Componies Act 2006. lor the year ended 31 Decembèr 2022, although an audil has been carrfed out under secllon 144 tsl th8 Charltlès Ac12011. Thg directors acknoedge th8ir responslbllltles lor mplng wlth thè requwgments ol th& Ccfftpanlps Act 26 wllh respect to aecountiTrg rècords and the preparatlon of financial statements. The members have not required thg Company to obtain an 8udit of its financi81 slalements un¢Jer lh& rèquirements ol thè Companios Act 2006. lor the y8ar in question In accordance with section 47fj. rh8 financial ststements were approved by the Tw8lees on ...2.1..&op.tpn)b.er 2023 Sigrid Rausing Sigrid Rausing Trustee Company reglstratlon numbor 11592194
GRANTA TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Notè$ Cash flaw¥ from operatlng activities Cash generated fromllabsorbed by) operations 20 9.672.712 1860,1891 Investlng a¢tlvltles Purchase of langible fixed assets Purchase ol investments Investm8nt income rec&lvèd 17.0901 19.000.000) 134,267 119,7341 Net ¢aBh used In Investlng actlvltlÈs 18,872.8231 119,7341 Not cash used In linan¢ing a¢tlvlt48s Net Increasèlldo¢reasel In cash and cash èquivalents 799,889 1879.9231 Cash and cash &qulvalents at beglnnlng of year 118,768 998,691 Cash and cash equlvalents at ènd ol year 918,657 118,768 10
GRANTA TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting pollcies Charity information Granla Trust is a p¥te company limited by guarantee incorporated in England and Wales. The registered office is 12 Addison Avgnu8, London. W114QR, UK. 1.1 A¢counting convèntion The financial statements hav8 been prepared In accordance wlth thè Trust's articles, the Companias Act 2006, FRS 102 The Financlal Reporting Standard applicable in th& UK and R&public of Ireland. I"FRS 102 1 and the Ch8rilies SORP 'A¢counting and Reporting by Charities". Statement of Recommended Practice applicable lo Charilies preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and R9public of Iroland IFRS 1021"18ffective 1 J8nuary 20191. The Trust is 8 Publi Ben&fit Entity a8 defined by FRS 102. The financial $tstements are prepared in slerting, which is the functs'onal currency of the Trust. Monetary amounts in these financial statements are rounde(S to the nearest £. The financial si8tements have bÈén prepared under thè hislorical cost convention. Thè principal accounting policies adopl¢d are set out below. 1.2 Golng concern At Ihe lirne ol approving the financi81 statements, the trustees have a reasonable expectstion that the Trust has adequate reSoUrS to continue in operational existence for Ihe foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial stalem8nts. 1.3 Charitable funds Unrestricted funds ar8 avallable for use al the discratltsn of the trustees in furth&ran¢g of their charitabl& objectives. R8Stricl8d funds ar8 subject lo spacifie eondits'ons by donors as to how they rnay be used. Thè purposes and us85 of the restricted funds a set out In th8 notes to the finandal statem8nt5. Endowm8nl funds are sublect to SP8dflc condluons by donors that tha capital musl be malnialned by thg Trust. 1.4 Income Incom8 is recognised whén the Trust is legally Èntitled to it after any pèrformanc8 ConditnS have bean m81. the amounts can be measured reliably, and it is probable that income will be received. Donations are recognised once thè Trugl has been notbfied of the donation, unless performaneè ¢ondition reqtjire deferral of the amounl. Income tax recoverable in relation lo donations received undor Gift or deeds of covenant is recognised al ihe time of the donation. L8gacies are re¢ognised on receipt or otheiSe il the Trust has been notified ol an impending distribulion. the amount is known, and receipt is exp&¢ltrd. 11 the amount is not known. the legacy is treated as a coniingent asset. 1.5 Expènditure Re¢ognlllon of Expandlturo Exponditure is cognised once there is a legal or constructive obligation to maké a payment to a third party. it is probable that settlemenl will be qUired and th6 arnounl ol the obligation can be measur&d relTr8bly. Expendituro is classified under th8 following activity hea¢Jings'. 11
GRANTA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Accountlng polic508 {Contlnuodl Gov•rnanc• Costs Includ88 staff time and expenses for tim8 spent in connèctlon with trustees me&tlngs, plus the cost ol audlt and professional fees. Salary costs. wher8 appropriate. ar6 eharged in accordance wlth time spent. 1.6 Tanglblè flxed a8¥ets Tangibl8 fixed assets ar8 initially measurèd at cost and SubsentlY measured at Cost or v81uation, net of deprgclation and any impaimienl losses. Depreciation is reo)gnised so as to write off th& cost or v8luation ol assels lass their residual values ovar thèir useful lives on the following ba$tr$'. Cornputers and Wèbsite cosis 2&33% per annum The galn or10s5 arislng on th8 disposal of an assèt 15 deteimined as the diffèr8n¢e between the sale proceeds and the carrying value of the asset, and is recognlsèd in the statement of financlal activities. 1.7 Flxed asset Investments Fixed asset investments artr inilially measured at transaction price excluding transaction costs, and are subsequently measured at fair value al each reporting date. Changes in fair value are recognised in net incom&ll8XPgnditurel for tha y88r. Transaction costs 8rg 8xpens8d as incurr8d. 1.8 Impaimifrnt of fix•d assets At 88ch reporting end dale, the Trust rèvl8ws the carrying amounts of its tangible assets to d8t8rrnine whether there 15 any indlcatlon that those assèts have suffered an impairment10ss. 11 any such Indlcation exisis, the r8coverable amount (>f the asset is èstim8led in order to d8lamiin8 the exlenl ol the imp8im)&nt loss lil any). 1.9 Stocks Stocks are slated at the bwer of cost and estimated selling price less costs to complete and sell. Cost comprises diraet materials and, wher& applicable, direct labour costs and those overh88d$ that hav8 been incurred in bringing the slocks to their present location and condition. Items htrld lor dislribub'on at no or nominal consideration are measured the lower of replacemant c¢)51 and cost. Net r891i8able value is the estimated selling price less all estimatad ¢osts of completion and costs lo be Incuir&d in markeling. selling and distrlbutlon. 1.10 Cash and cash equivalents Cash and cash 8quivalents Includ8 cash in hand. deposlts held al call with banks, oth8r 5hort-term liquid investments with original malurilies of Ihree months or less, and bank overdrafts. Bank ov6rdiafts are shown within borrowings in current liabililies. 1.11 FSnanclal Instruments The Tfu5t has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Sectton 12 'Olher Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial Instruments are recognis8d in the Trust's balanc8 $h991 when the Trust bocom8S Pgrty lo the contractual provlsions of the inslrumenl. Financial assets and liabilities a off$61, with the net amounts presented in th8 fin8ncial slalements, when there is a legally enfor¢eable right to sel off the recognised amounts and thero is an intention to sellle on a net basis or to r8alis& tha 8ssel and s8tU8 lh& li8bility 5imultsneously. 12
GRANTA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Aeeountin9 pollelos {Continuedl Baslc financial assots Basic financial assets, whlch include d6btors and cash and bank balances. ar* in(tially measur&d at transaetlon price induding transaction ctssts and are subsequently carried at amortlsed cost using the effectiv8 interest method unless Ihe arrangement constitutes a finanring transaction, wh&r& the transaction is measured at the present value ol the futu receipts discounted at a market rale ol inleresl. Financial assets dassified as receivabl8 within one year ar9 not amortised. Basio financial liabilities Basic financial liabilities, including Crediiors an¢J bank b8ns are initially r8wgnised at transaction price unless Ihe arrangement constitutes a financing transaction, where the debt instruTn8nl is rneasured at the present value of the future payments discounted at a markèt rat8 of interest. Finandal liabilities dassified as payable within one year ar8 not amortised. Dèbt instruments are Subsequent carried 81 anwrtised cost. using the effective intero81 rate method. Trado creditors are obligations lo pay for good3 or servlces that have been acqulred in the ordinary course of opeiations from suppll6rs. Arnounts payab18 are classified as eurrent liabilities if payment Is due within one year or less. If not. thèy are presenled as non-current liabilities. Trade creditors are IÈco9nised initially at transaction price and subsgqu8ntly measured 8t amortised cost using the effective inlerest method. Dtr•cognlllon of flnanclal Ilabllltlès Financial liabililies are der$¢ognised when thg Trust's contractual obli98tions expire or are di$ch8rged or cancelled. 1.12 Employee beneflts The cost ol any unused holiday entitlement is recognised in the period in which the employee's servi¢88 8re rgceived. Terrnination benefjts are recognis8d immediately as an expense when the Trust is demonstrably committed to terminate the employment of an employee or to provide lemiinalion ben&fits. 1.13 Retlrement beneflts Payments to defined contribution retirement benefil schemes are charged as an exp8nse as they fall du¢. 13-
GRANTA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2022 Donation¥ and legaele5 Unr•strf¢t•d Endowment funds funds gèn•ral 2022 Totsl UnstrICted funds 2022 2022 2021 Donations and gifts 500,000 9,850.973 10,350,973 466.8SO Don•tlons and glft$ Th& Hans and Marit Rauslng Charitable Trust Other donations N81 liabilities taken on as part ol Granta Magazing Ir8n¥fer Isee below} 500,000 6.103,451 6.603,451 3.747,522 3.747,522 500.000 133.1501 500,000 9,850,973 10,350,973 466,850 As part of the transfer of the tllagazine trade from Granta Publications in 2020. The Hans and Marrt Rausing Charltable Trust made a donal'on of £1,000,000 to Granta Trust. Al the point of transfer of the m898zin8 from Granta Public81ions, the lolal value of the identifiablè 8ss8ls and liabiltlies of that trade was a not liability position of £130,585. Therefore, this £130,585 was strl ag8insl the above mentioned £1,000.000 donation as, in substance. they formed part of ihe same accounting tr8nsaCtion. Th8 judgements and estirn81gs formed when valuing th8 assets and liabilities whèn that tr8nslgr took place W8r8 r8viewed during th8 previous financial y•ar and an adjustment of £33,150 was r8cogni3ed in the previous year. Sigrid Rausing has made a further commilmenl to $e¢ura an 8ddilional £2.000,000 in four annual instalments 01 £500.000. The subst8nco of this commilm&nt is lo Urtderite Ihe costs associatad with the magazine business, and as such th8 annual donations of £500,000 will be recognised in the Stat8rn8nl of Financial Actlvlll85 in the year In which thg funds are recelved, In ord8r to rnalch this cornmitment wlth th8 publlcalions ol th& rèl8vant magazines lo whlch the commitment r&latas. Endowments represent expèndable endowments designaled lo the Trust by the trustees during the year, which 8re intended to providg 8 fvlure incom8 str8&m to underwrite thè rnain magazin8 publishing aclivilie5 of the chgrily. Included In other donations are amounts glfted from an organlsatlon conngcled to a trustee. Charltablg actlvltles M4gazin8 Trad8 2022 Magazine Trade 2021 Sales within ch8ritsble aclivilies 538,549 753,647 14-
GRANTA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Inv•8tmgnt¥ Unrestricted funds Totsl 2022 2021 Dividends received In18resl receivabl& 131,778 2,489 134.267 Charltablè aetivities Magazln• Magazlne publication publication Grant Maklng Total 2021 2022 2021 2021 Staff Costs Depreciation Production Cost$ Contributor Fees Distribution Costs Poetry Costs Marketing Costs Website Cost Office Supplies Costs Professional Fees Computer Running Cos15 Overhead Costs Bad D$bt 9xpens8 436,534 21.742 117,736 13S,742 2Q2,574 4,243 26,610 37,023 25,679 19,900 2,037 41,406 112,49Ql 527,414 30,266 148,583 162.155 298.233 3.446 62.287 45.208 13.011 20.193 4.652 45,739 527,414 30,266 148,583 162,1SS 298,233 3.446 62,287 45,208 13,011 20.193 4.652 45.739 1,058,736 1.361,187 1,361,187 Grant fundlng (note fjl Governance costs (note 71 8,112 8.112 8,000 8,425 8,000 1,067,161 1,369,187 8,112 1,377,299 15-
GRANTA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Grants payable Grnnt Making Grant Maklng 2022 2021 Giants to institutions.. Granta Publi¢alitsns 8.112 Support cost$ Support Governanc• osts costs 2022 2021 Ba8ls of alloeatlon Audit fees 8.425 8.425 8,000 Governance 8.425 8.425 8,000 Analys8d b6iw6gn Charitable activities 8.425 8.425 8,000 Trustoes During the year a trustee provided consultancy seNices to th& Trust amounting to £6.061. During the year, no remLJneration or benefits wèrè réceived by trustees and key management p&rsonnal for their services lo the eh8riLy. Employees The average monthly number of employees during th¢ ygar was.. 2022 Numbor 2021 Numbèr Adrninistratlva Employment Costs 2022 2021 Wages and salarlas Other pension cosls 414,119 22,41 S 503,197 24,217 43e,534 527,414 16-
GRANTA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Employees Cgntinuedl The number of emrAoyees whose annual Muneral)n was more than £60,000 15 as follows: 2022 Numbor 2021 Nurnber £60,001 to £70,000 10 Net galnsllloss8¥1 on Inv•stm&nts Endowment funds general 2022 Total 2021 R8valualion of investments 1735,0531 11 Other galns or losses Unrè$trlet•d Unrèstricted funds funds 2022 2021 Foretgn &xchange gain$ 11.4261 1.630 12 Taxation The charity is exempl from tax on incorne and gains falllng withln sèctlon 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargèable Gains Act 1992 the extent that th6s8 are applied to its charitable objects. 17-
GRANTA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 13 Tangible flxed asset$ Computsrs and W•bslto costs Cost At 1 January 2022 Additsons 227.860 7.090 At 31 December 2022 234.950 Oepreclation and impalm)ent At 1 January 2022 Depreciatlon charged in the year 195,541 21,743 At 31 D8cemb8r 2022 217,284 Carrying amount At 31 Decèmbèr 2022 17,666 At 31 Dec8tnber 2021 32,319 14 Flxèd a¥set Investmènts Llsted Inv•stm4nts Cost or valuatlon At 1 January 2022 Additions Valuation changes 9.000,000 1735,0531 Al 31 December 2022 8.264,947 Carrying amount At 31 December 2022 ,264,947 At 31 December 2021 15 Slocks 2022 2021 Magazines 42.629 34.336 18
GRANTA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 16 D&btors 2022 2021 Amounts falling duo within one ygar: Trade debtors Other debtors Pr8paymenls and accrued income 82,209 326.004 21,031 52,427 203.552 2,895 429,244 258,874 17 Credllor8: amounts falllng duè wlthln onè yoar 2022 2021 Other taxation and soclal security Trade crediltsrs Subscriptions Ilabllllies Acuuals and deferred income 14.292 69.210 331,144 33.868 7,180 69,210 348.085 18,194 448,514 442,669 18 Analys1$ of not assèts between funds Unr•stri¢tod Endowment funds fvnds 2022 2022 Total Unr•$tri¢ted funds 2021 2022 Fund balancès al 31 December 2022 arè represented by: Tangible assets Investments Currenl assetsllli8bililie$l 17,666 17,666 8,264,947 8,264.947 850,973 942.016 32.319 91,043 130.6911 108,709 9,115.920 9,224,629 1.628 19 R•lat•d p•rty transactlons Includ&d wlthln Support Costs ara staff and other OV8Thead costs whlch arè rach8198d frorn Grdnla Publlcatlons on an ami's length basls. Included within Gr8nty P8yable is a grant mad& to Grants Publications made on an arm's length basis. Donations receivtrd frotn related parties are disclosad In nolg 2. Sigrid Rausing is thè ullm8te controlling party of Granta Publlcations. 19.
GRANTA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 20 Cash g•nerated from opèration4 2022 2021 Surpluslldgficill for the yaar 9,221.575 1156,8021 Adjustments for., Investment inc0rn9 recognised in statement of financial activitie Forèlgn exchange differ6nc85 Fair value Igainsl and losses on investment5 Depreciation and Impairment of tangibla flxed assets 1134.2671 1.426 735,053 21,742 11,6301 30.266 Movements in working capital.. Ilncreas81 in stocks Ilncreasel in debtors Increas81ldgcreasel in crèditor8 (Decrease) in deferr8d income 18.2931 1170.3691 5,845 134,3361 1118,3041 179,3831 Isoo,0001 Cash generatèd froml{absorbed by) operatlons 9,672.712 1860, 1891 20-