OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2024-03-31-accounts

Annual Report 2023–24

Books Council of Wales Annual Report 2023–24

1

Annual Report 2023–24

A word from our Chair Linda Tomos

Well, another year has passed, and a great deal of excellent work has been completed by the Books Council of Wales.

Once again, the partnerships between the Council, publishers, bookshops and libraries have succeeded in producing and promoting high quality books in both languages for the benefit of the people of Wales. It is pleasing to note the progress which has been made with innovative projects, such as the New Audiences Grant and Reading Well, to encourage engagement and interest amongst authors and readers alike.

These achievements would not have been possible without the support of the Deputy Minister, Dawn Bowden MS and the positive relationship which has been fostered with civil servants in Creative Wales and MALD. I’m sure I speak for all my fellow Trustees in sincerely thanking them for their contribution to the success of the Council’s work. The contribution and interest of the Minister for Education, Jeremy Miles MS has also

been invaluable in supporting the Books Council’s relationship with schools in Wales to encourage all children to enjoy reading.

Following a very competitive public appointments process, I was delighted to welcome Ruth Thomas and Meinir Ebbsworth to join the Board. Both bring a wealth of expertise to complement the skills of existing Trustees, and I look forward to working with them. As Chair, I would also like to sincerely thank Mrs Rajvi Glasbrook Griffiths for her work as a member of the Board and wish her well in future endeavours. Rajvi has been an enthusiastic Trustee who was always willing to share her extensive experience and expertise to improve our work. We have also had the opportunity to thank Mererid Boswell who has also achieved so much to ensure the Council’s success as Head of Finance and Business.

3

Annual Report 2023–24

The Board has benefitted greatly from her wise advice and careful stewardship of financial matters and the pension over the years. As a Board, we wish her well.

Once again, there are so many highlights that it is impossible to mention them all, although I hope that as you read this Annual Report, you will be as impressed as I was by the breadth of work that has been accomplished. The Books Council has a vital role to play in terms of providing expert advice, maintaining the quality of the books supported and connecting books with readers, especially in the digital field.

In this context, the fragile financial situation which will result from the cut of 10.5% to the core budget has raised concern and disappointment amongst the Board of Trustees. We are proud of the excellent work that has taken place, but progress will only occur if resources are available to build on our services for the publishing industry and the people of Wales.

Finally, as Chair, I have greatly benefitted from the input of many colleagues. I would like to sincerely thank all our supporters, volunteer members of the panels, Friends of the Books Council, and my fellow Trustees who have given their time and expertise to enable us to achieve more. Without the dedication of the staff who ensure that our work flourishes under Helgard’s leadership and our many partners in government, local authorities and the publishing industry, we would not have succeeded in achieving the outputs and results outlined in this report. I really look forward to working with you all as we move forward.

With my very best wishes.

Linda

4

Annual Report 2023–24

A look back over the last year

Helgard Krause, Chief Executive

The close of this last financial year was undoubtedly overshadowed by the extremely disappointing news that we would be subject to a 10.5% budget cut for 2024/25.

As we had some concern about the budgetary position, we had decided not to appoint some vacant positions which has proved vitally important. We are grateful to publishers and booksellers who have engaged with us on how to implement cuts across the budget lines. These constructive partnerships highlight how vitally important good communication and coproduction are for our sector.

Notwithstanding that particular challenge, there is much to celebrate when looking back at 2023/24. We delivered two major showcase events. In June we held a celebration of the New Audiences projects in Cardiff with nine project participants presenting their work and demonstrating the impact this particular grant had on them and their communities. This success then led to a third round of funding of £500,000 being confirmed in March 2024. In November

we held an event at the Senedd, with Jeremy Miles, the then Education Minister delivering a passionate and moving keynote speech on the reach and impact of the Schools Love Reading project. It is pleasing to see that the project continues to make a longer-term impact through related projects such as Teachers Love Reading and Love Reading on the Move. We saw a Wales presence at major book fairs; London Book Fair was delivered by Cyhoeddi Cymru / Publishing Wales in April 2023 and again in March 2024; and working closely with Creative Wales, we participated in the representation of Wales at the world’s largest publishing event in Frankfurt. Closer to home we took a lead role in securing ARFOR funding to support the Aberystwyth and Ceredigion application to become UNESCO City of Literature.

5

Annual Report 2023–24

It was a moment of real pride and in no small part due to the indefatigable efforts of the project team that the new CMS and warehousing systems finally went live with comparatively little disruption to services, and in the medium term will enable us to grow our distribution business.

Colleagues in Publishing Development delivered the first investment review for Welsh-language book publishers to align more closely with the franchise arrangements on the English-language side. It was pleasing to see Gwasg y Bwthyn rewarded for the transformative change they undertook to become a programme publisher for the first time. Pilot funding was also made available to support two new Welsh-language magazines with history and sports as a particular focus. The English-language magazine franchise round was extremely challenging due to a combination of standstill funding, rising costs and new entrants, with the panel deciding to invite applications for a new literary magazine when some funding was left unallocated at the close of the process.

The Children’s Books Department has gone from strength to strength with an impressive number of initiatives coming to fruition, especially in relation to the recommendations of the Siwan Rosser report. The Rhyngom (formerly Perthyn) project to help develop empathy and literacy, is in full flow.

More than ever, during these most challenging budgetary times, we are deeply indebted to all the volunteers who give their time and expertise so freely and generously. I am equally grateful for the energy, creativity and resilience of each and every member of the brilliant team that makes up the Books Council and helps us to deliver the support and strategic interventions that helps our sector thrive.

6

Annual Report 2023–24

----- Start of picture text -----
Books at the Distribution Centre
----- End of picture text -----

All systems go at the Distribution Centre

March 2024 marked a milestone at the Distribution Centre as we implemented a major upgrade to our computer systems and completed a 4-year project that started in March 2020 with a £750,000 grant from Welsh Government.

The Distribution Centre, which operates as a notfor-profit model, is home to over half a million books at any one time and has an annual turnover of around £3.1 million. It is at the heart of our work to support the books sector in Wales. It services bookshops and publishers throughout Wales, subsidising the sector by absorbing many costs, such as postage, returns and storage that commercial distributors would pass on to customers.

The new system, KNK Publishing, will enable us to work more efficiently, with more and betterquality information at our fingertips, and help us to improve our services to the publishing sector. The team at the Distribution Centre worked alongside industry leaders KNK to develop, implement and roll out the new system, and the switch from the old system to the new was made in March 2024.

----- Start of picture text -----
Frankfurt Book Fair
----- End of picture text -----

Representing Wales at major industry showcases in Frankfurt and London

We were pleased to support Welsh Government’s trade mission to celebrate the very best of books and content from Wales and of Wales, at the Frankfurt Book Fair in October. Frankfurt is the largest content fair in the world, giving the opportunity to showcase the publishing industry in Wales on an international stage. 13 publishers and partners from Wales attended, and the 5-day event attracted around 215,000 visitors with 4,000 companies exhibiting from 95 countries.

The Wales presence at London Book Fair in April 2023 and again in March 2024, was managed by Cyhoeddi Cymru / Publishing Wales, with representation from a number of publishers from Wales at both events.

7

Annual Report 2023–24

CREATING LASTING CHANGE

New Audiences Grant exceeds £1.5 million to support the publishing industry

When we launched the New Audiences Grant in spring 2022, we started with £186,000 and were able to support 13 projects. By the end of that year the investment from Welsh Government through Creative Wales had grown to over £600,000 and over 40 projects to strengthen and diversify the publishing industry in Wales. In June 2023 we held a celebration event at Tramshed in Cardiff to hear first-hand from grant recipients about their projects, and the impact of the funding on the people who had opportunities for work, started new initiatives and collaborations, or discovered a platform to tell their stories.

we were delighted to receive a further £400,000 from Creative Wales to run New Audiences 2 during 2023–24. This second round of funding was able to build on some of the successes from the first year of the grant and see projects grow for a second year. We were also able to fund some new initiatives to bring new talent and ideas to the sector.

Since its launch, the New Audiences Grant has supported a wide range of projects across Wales. Here are just a few from this year:

Over this year, the grant and the projects it supports have gone from strength to strength and

8

Annual Report 2023–24

The Romani Cultural and Arts Company

The creative writing project ‘Gypsy Writers’ commissioned four emerging, unpublished Gypsy, Roma or Traveller writers to take part in a mentoring programme to develop new writers with one-to-one mentoring, prose and poetry workshops, and training.

----- Start of picture text -----
Malachy Owain Edwards
----- End of picture text -----

Gwasg y Bwthyn

Malachy Owain Edwards, author of Y Delyn Aur , travelled to Barbados to research his family history on his grandfather’s side, his mother’s father Kenrick, who came over to Britain in the fifties as one of the Windrush generation. He is currently writing, in Welsh, a book based on this experience.

New Audiences 3

In March 2024 we were delighted to be able to announce that a further £500,000 would be available in 2024–25 to run New Audiences 3, bringing the total investment in the New Audiences Grant since 2022 to over £1.5 million. The full details of all the projects that have received New Audiences funding to date can be found on our website books.wales

Gathering: Women of Colour on Nature

This anthology of personal essays, edited by Durre Shahwar and Nasia Sarwar-Skuse, was published by 404 Ink in February 2024. It carves out a space for women of colour writing in the genre of nature writing where they are under-represented, and celebrates nature through a wide range of intersecting topics.

9

Annual Report 2023–24

----- Start of picture text -----
Meinir Ebbsworth Ruth Thomas
----- End of picture text -----

Welcoming two new Trustees to our Board

We were delighted to welcome Meinir Ebbsworth and Ruth Thomas to our Board of Trustees in January 2024.

Meinir has worked in education as a secondary teacher, adviser and Director of Education. She is also an author of a number of books on Welsh Literacy for children and young people. Now she is the Strategic Director for the National Centre for Learning Welsh.

Ruth is a senior news editor at BBC News, where she leads a team that helps journalists use data to grow audiences and deepen relationships with them – in the UK and across the world. She has worked in the news department of BBC Cymru in various positions including as editor of the S4C Newyddion programme, and one of the founders of Cymru Fyw. Ruth is a keen reader and a slow runner.

----- Start of picture text -----
Young People’s Panel with Chair, Llŷr Titus
----- End of picture text -----

Young People’s Panel

We were over the moon when the nine members of our Young People’s Panel agreed to continue on the panel for another year. The panel, which was established last year, meets three times a year and we have benefitted so much already from their discussions, ideas and honest, thoughtful feedback. The panel has advised us on our digital content, as well as supporting a number of projects such as the Tir na n-Og Awards. We would like to thank them for all their hard work and participation, particularly during a very busy time for all of them. We are so looking forward to working with them for another year.

Thank you to our volunteers

The Board of Trustees generously give their time and expertise to the Books Council for free. They are among around 60 volunteers who supported our work this year alongside the members of subcommittees, and advisory and judging panels. Together, they play a vital role in ensuring the independence of decision-making processes and the scrutiny of our work. We could not do what we do without you. Thank you!

10

New magazine titles

In June we announced the launch of two new Welsh-language magazines after Gwasg Carreg Gwalch and Golwg secured grants to pilot two new titles.

Hanes Byw is a new popular history magazine from Gwasg Garreg Gwalch, launched in the autumn of 2023. Under the editorship of Ifor ap Glyn, the magazine weaves stories from history and archaeology, traditions, folklore and art to shine a light on contemporary issues.

Chwys: Cylchlythyr Campau Cymru is a digital magazine from Golwg360, which offers commentary on the sporting world from a Welsh perspective, from the mainstream to less wellknown sports.

During 2023 we ran the tender process for the next 4-year franchise period for English-language magazines. Four titles were awarded grants, including a new magazine, The Paper , which received the grant for the first time. The other titles to receive funding were Poetry Wales , Welsh Agenda and Nation.Cymru .

In March 2024, after the franchise round resulted in some budget unallocated, we advertised a new tender opportunity for a brand-new English-language literary magazine with a strong focus on fiction and creative non-fiction, featuring robust reviews and commentary. It is envisaged that the first issue of the new title will be published towards the end of 2024.

11

A brand-new resource to support teachers

In spring 2024 we launched a resource pack for teachers, containing details of the range of support available to schools from the Children’s Books and Reading Promotion Department. The aim of the Reading for Pleasure Guide is to help teachers across Wales to promote and encourage a love of reading. Every primary and secondary school received a copy of the guide, which is also available as a digital resource on our website.

We hope that the resources and support outlined in the guide will inspire teachers and learners to read more, discover new books and develop a lifelong love of reading both inside the classroom and beyond.

The guide includes information on support for teachers, such as the pilot Teachers Love Reading scheme, challenges for learners like BookSlam and the Summer Reading Challenge, and the development of new titles to support the curriculum and wellbeing, such as Rhyngom.

12

Annual Report 2023–24

Our year in numbers 2023–24

183

Welsh-language books supported by grants

103

English-language books supported by grants

£400,000

for New Audiences Grant 2 to strengthen and diversify the publishing industry in Wales

2,146kWh

of renewable electricity stored by battery for use by the Distribution Centre

523

shops serviced

27,232kWh

of electricity generated by solar panels

831,497 books sent out by the Distribution Centre

1,206

business miles in an electric vehicle

13,500

books sent to 90 food banks and Families First centres

60

volunteers on our Board and independent panels

13

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Registered Charity: 1192269 www.books.wales

CYNGOR LLYFRAU CYMRU / BOOKS COUNCIL OF WALES

CONTENTS

Trustees’ Report
Main Aims and Activities of the Charity 2–4
A Summary of the Year 4–6
Achievement and Performance 7–8
Financial Review and Future Plans 9–10
Statement of Trustees’ Responsibility 11
Independent Auditors’ Report 12–15
Statement of Financial Activities 16
Balance Sheet 17
Cash Flow Statement 18
Notes to the Financial Statements 19–37

1

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

The trustees present their report, together with the accounts for the year ending 31 March 2024.

Main Aims and Activities of the Charity

Public Benefit Declaration of Interest

The Executive Committee have considered their duty in accordance with Section 17 of the Charities Act 2011 regarding Public Benefit. They are satisfied that the charity’s activities during the year, as described in this report, are in accordance with these criteria. The core aim of Cyngor Llyfrau Cymru – The Books Council of Wales is to provide benefit to the readers of Wales – in both languages.

Administrative details

Name of Charity Cyngor Llyfrau Cymru – The Books Council of Wales Registered Charity 1192269 Registered Address Castell Brychan Aberystwyth Ceredigion SY23 2JB Auditors Llŷr James Chartered Certified Accountants & Registered Auditors 25 Bridge Street Carmarthen SA31 3JS Bank HSBC plc Harford Square Lampeter Ceredigion SA48 7DU Chief Executive Helgard Krause Investments Broker BlackRock 12 Throgmorton Avenue London EC2N 2DL

2

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

Trustees

The Books Council of Wales, as a Charitable Incorporated Organisation, is governed by the Board of Trustees which includes the Chair, Vice Chair and Trustees and up to 12 members. Trustees are elected to serve for a term of 4 years with an option of an additional second term of 4 years. The chair is elected annually by the Board of Trustees. An Annual General Meeting is held in the summer where the membership receives the accounts and annual report.

The Trustees for 2023/24 are:

Mrs Linda Tomos Chair Mrs Rona Aldrich Vice Chair Mr Alfred Oyekoya Treasurer Professor Jane Aaron Mrs Meinir Ebbsworth Appointed 31/01/2024 Mrs Rajvi Glasbrook Griffiths Resigned 31/03/2024 Mrs Alwena Hughes Moakes Ms Lowri Ifor Professor Carwyn Jones Ms Ruth Thomas Appointed 31/01/2024 Professor M. Wynn Thomas Dr Caroline Owen Wintersgill

3

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

Constitution

Cyngor Llyfrau Cymru – The Books Council of Wales’s governing instrument is a written constitution. Cyngor Llyfrau Cymru – The Books Council of Wales was transferred into a Charitable Incorporated Organisation on 1 April 2021.

The Council and its Committees

The Books Council is governed by a Board of Trustees who are appointed under the terms of its Constitution. The Board of Trustees appoints members to specialist sub-committees which report to the Board of Trustees. An open advertising process is fair and transparent, in line with best practice, for all available positions on the Board and sub-committees.

A Summary of the Year –

The close of this last financial year was undoubtedly overshadowed by the extremely disappointing news that we would be subject to a 10.5% budget cut for 2024/25. As we had some concerns about the budgetary position, we decided not to appoint some vacant positions which proved vitally important. Notwithstanding that particular challenge, there is much to celebrate when looking back at 2023/24. We delivered two major showcase events: in June we held a hugely successful and well attended New Audiences Showcase in Cardiff with 9 of project participants presenting their work and providing testimony of the impact this particular grant had on them and their communities. This success then led to a third round of funding of £500,000 being confirmed in March 2024.

In November we held an evening event at Senedd Cymru with Jeremy Miles, the Education Minister at the time, delivering a passionate and moving keynote speech on the reach and impact of the #SchoolsLoveReading project; it is pleasing to see that the project continues to make a longer term impact through related projects such as #TeachersLoveReading and Authors on Tour. This last year was the first in many years to have a Wales presence at two major book fairs; London Book Fair was delivered by Cyhoeddi Cymru Publishing Wales in April and, working closely with Creative Wales, we participated in the Wales country presence at the largest publishing event in Frankfurt. Closer to home we took a lead role in securing ARFOR funding to support the Aberystwyth and Ceredigion application to become UNESCO City of Literature. With the new Welsh Government venture ADNODD set up to support the provision of resources to schools, we entered into early discussions on how we could utilise the existing structure of the Books Council to support the commissioning of education books and we anticipate that a formal agreement of cooperation will be agreed in 2024.

Business Developments

It was a moment of real pride – and in no small part due to the indefatigable efforts of the project team – that the new CMS and warehousing systems finally went live with comparatively little disruption to services. As is to be expected with a project of this magnitude, many minor issues are still being addressed but this important new milestone will enable us to look confidently to achieving our future ambitions, including securing funding for new and larger premises to deliver the growth potential our distribution arm undoubtedly has. A first important step has been winning the distribution business of Graffeg as their exclusive distributor for the UK and we believe that with additional premises and space more such contracts can be won. With the impact of the #SchoolsLoveReading project waning, the turnover has gone back to previous levels, but performance has been strong despite the challenging economic circumstances across Britain.

4

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

Publishing Development Highlights

With business back to normal, we delivered the first investment review for Welsh language book publishers to align more closely with the franchise arrangements on the English language side. It was pleasing to see Gwasg y Bwthyn rewarded for the transformative change they undertook to become a programme publisher for the first time. Pilot funding was also made available to support two new Welsh language magazines, with history and sports as a particular focus. The English language magazine franchise round was extremely challenging due to a combination of standstill funding, rising costs and new entrants, with the panel deciding on inviting applications for a new literary magazine when some funding was left unallocated at the close of the process.

We will continue to monitor carefully the development and potential impact of Artificial Intelligence, and hope that UK and Welsh Governments will be providing clear regulatory guidance in relation to content generation and intellectual copyright.

It was good to have confirmation for another round of Reading Well funding, with a completely new list focusing on Dementia and Alzheimer’s. The ongoing impact of New Audiences Funding is pleasing to witness, but it remains challenging to continue supporting worthy projects with ever increasing competition and tighter funding conditions.

The work of the Children’s Books Department has gone from strength to strength with an impressive number of new or refreshed initiatives coming to fruition, especially in relation to the recommendations of the Siwan Rosser report. With the Rhyngom (formerly Perthyn) project in full flow, officers are now discussing new project ideas which support schools whilst having reading for pleasure at the core.

Equality, Diversity and Inclusion

At the Books Council of Wales, we recognise that the structural inequalities that exist within the wider society in Wales also exist in our own sector. We are committed to achieving fair representation within both our own organisation and the book sector in Wales. Our Board of Trustees, executive leadership, managers and team leaders understand that ensuring opportunities is both an individual and a collective responsibility and lies at the heart of the culture of our organisation. We have increased diversity within our sub-committees and judging panels, but there is more to do.

In particular, we are seeking to overcome the challenges of attracting staff from underrepresented communities, being based in rural Wales and committed to conducting our day-to-day business in the Welsh language. These challenges are shared by others and will not be solved by us alone. It requires a collective Wales-wide effort, and we are collaborating with partners and stakeholders to create solutions for real and lasting change. As the main supporters and funders of the publishing industry in Wales, we have a responsibility for the impact we have on the people we support, our partners, our employees, and wider society. Considerations of equality, diversity and inclusion are central to making all our funding decisions to assist partners to deliver positive change and achieve fair representation in the content we fund. We report regularly on Equality, Diversity and Inclusion to the Board of Trustees.

5

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

Corporate Matters

It was with great regret we saw the departure of the Head of Business and Finance, a key member of the Senior Management Team, as she was appointed to a role at the National Library of Wales. With limited budgets it was impossible to appoint at the same level, but we were pleased to welcome Rhian Davies from the Royal Commission on the Ancient and Historical Monuments of Wales to our team. We concluded the last restructure by appointing two new roles, namely Professional Lead – Editorial (Dr Alaw Mai Edwards) and Professional Lead – Design (Dafydd Owain) and it is encouraging to witness the immediate and strategic input of both new team members.

We ran a successful round of Trustee recruitment with two new members joining the board in January, enabling the gradual retirement of trustees transferred in from the previous legal structure.

Changes within Welsh Government meant the appointment of a new minister in charge of Creative Wales, and we are looking forward to continuing and building on our successful collaboration.

Cyber Security remains a key concern and we will work toward attaining Cyber Essential status.

We have continued to invest in our staff by offering regular training opportunities combining online and in-house training ranging from business skills, health and safety and people management to mental health at work and menopause awareness. Here is a list of training that happened during the year: Google Analytics, menopause awareness, GDPR, Introduction to Data Protection for the Voluntary Sector, Curriculum reform and implementation in Wales, training for Welsh-language Editors on the books in the Amdani Series, Mental Health Awareness, Dyfed Pension Fund session, Training for 7 Programme Publishers on social media marketing, Training for Welsh-language publishers on Cam Cynydd 3 Project, Training for children’s books editors sponsored by the Books Council, Training for editors of adult books sponsored by the Books Council, KNK System training. In addition, we are encouraging staff to make better use of the training module offered on BrightHR.

6

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

Achievement and Performance

KEY TARGETS 2023/24
2023/24
Target		 2023/24
Achieved
Number of manuscripts – Editorial
Department		 170 131
Number of titles assisted by the Design
Department		 110 50
Distribution Centre £4m gross
£2.64m net		 £4.66m gross
£3.11m net
Level of Distribution Centre debtors No more than 2% 1%
Gwales: targets for online sales £75,000 £80,266

7

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

KEY TARGETS 2023/24 – PUBLISHING GRANTS KEY TARGETS 2023/24 – PUBLISHING GRANTS
2023/24
Target		 2023/24
Achieved
Publishing Grants (Welsh-language)
Number of titles published 133 133
Average sales 800 after 18 months 994
Number of Welsh-language
magazines		 18 19
Prompt publishing in accordance
with the timetable		 98% 95%
Publishing Grants (English-language)
Number of Literature Grant titles
published		 44 44
Number of author advance titles
published		 15 13
Marketing Grants 20 29
Number of magazines funded 5 6
Average sales of literary
magazines		 General – 400
Multi-focus – 300
Individual focus – 300		 General – 875
Multi-focus – 396
Individual focus – 470
Prompt publishing in accordance
with the timetable		 98% 75%

8

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

Financial Review

A total income of £8.3m was received during the year compared to £10.4m in 2022/23.

The Distribution Centre’s income has benefited from the Caru Darllen sales which has been helpful in terms of increasing the gross profit. Large projects have helped to make use of the staff capacity available, but with standstill funding there is very little capacity to absorb project administration into current staffing in future.

Of the expenditure of £8.7m (compared to £10m in 2022/23), the treatment of capitalising expenditure on the new system has largely generated a deficit of £374,524 (compared to the net surplus of £396,857 in 2022/23).

The Books Council’s investments £190K (£185k for the same period in 2023) and Pension Scheme investments have increased and with interest rates improving we may need to look at other methods of generating income from the capital.

At 31 March 2024, net assets (excluding pension liabilities) stood at £3.6m (2022/23: £3.9m). The decrease is due to the timing of the expenditure of the capital funding.

Reserves Policy

This Reserves Policy is designed to ensure that the Council has enough funds to meet unforeseen capital expenditure, and to deal with risk factors associated with the running of a Distribution Centre that receives no funding from the public purse. The Books Council keeps these financial funds in several categories:

Unrestricted Funds

Designated Funds

As new system development is capitalised, there is a fund of £1,338,214 to equate to the £1,276,573 investment in new systems carried out to date. The new system will be depreciated in the current year as it went live in March 2024 and will be depreciated over 10 years.

Restricted Funds

These funds are for use only as noted in note 20.

9

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

Main Sponsors

We are extremely grateful to Creative Wales and the Welsh Government for providing a large proportion of the Books Council’s funding; without this support, it would not be possible for the Council to carry out its work.

Investments Policy

In accordance with the Constitution, the charity trustees have the power to invest when they believe that investment is appropriate. The assets of the charity are available and sufficient to meet the requirements in the foreseeable future.

Volunteers

The charity is very grateful for the contribution of volunteers who work free of charge on the various panels and projects of the Books Council. As we cannot put a financial value on all this work, it is not included in the Statement of Financial Activities.

Related Party Transactions

The staff and trustees declare any interests annually and as they arise. There are transactions during the year ending 31 March 2024 by the trustees noted in note 25 of the financial statements.

Risk Management

The Council has considered and assessed every risk that could affect the charity. This risk assessment process encompasses not only the financial situation, but also strategic and circumstantial considerations. The Council confirms that systems have been put in place to mitigate all such risks identified as part of this process.

Viable Business Assumption

The trustees have a reasonable expectation that the Books Council has enough resources to continue to act as a going concern. For that reason, it continues to prepare a Financial Statement based on being a viable business.

Equal Opportunities Policy

The Books Council of Wales is an equal opportunities employer. It does not allow discrimination on the grounds of gender, race, colour, disability, ethnic background or socio-economic background, age, family situation, marital status, part-time or full-time workers, religion, politics, sexual orientation, or any other irrelevant difference, and is committed to positively considering diversity. The principles of fair and open competition are used, and appointments are subject to merit.

10

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

STATEMENT OF TRUSTEES’ RESPONSIBILITY:

The Trustees are responsible for the preparation of the Trustees’ Report and the financial statements in accordance with applicable legislation and the Acceptable General Accounting Exercises of the United Kingdom.

The law requires the Trustees to prepare accounts for each financial year that will give a true and fair view of the Charity’s situation during that period. In preparing those accounts, the Trustees must:

The Trustees are responsible for keeping appropriate accounting records that disclose the Charity’s financial position fairly accurately at any time, and also to enable them to ensure that the financial statements are in accordance with the Charities (Accounts and Reports) Regulations 2008 . They also have a responsibility to protect the assets of the Charity and take steps to prevent and detect fraud or other irregularities.

According to the Trustees’ understanding:

The Trustees are responsible for the care and accuracy of the corporate and financial information that is included on the charity’s website. Legislation in the United Kingdom that manages, prepares and distributes financial statements may differ from legislation in other authorities.

AUDITORS

The reappointment of the auditors, Llŷr James, will be proposed at the Annual Meeting.

The Trustees’ report and the annual accounts were approved on 19 July 2024.

.......................................................................................... Mrs Linda Tomos

11

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE BOOKS COUNCIL OF WALES FOR THE YEAR ENDED 31 MARCH 2024

Opinion

We have audited the financial statements of the Books Council of Wales (the ‘charity’) for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusion relating to a going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

12

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE BOOKS COUNCIL OF WALES FOR THE YEAR ENDED 31 MARCH 2024 (CONTINUED)

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies, or apparent material misstatements, we are required to determine whether 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.

Opinions on other matters prescribed by the Charities Act 2011

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement, the trustees are responsible for the preparation of financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

13

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE BOOKS COUNCIL OF WALES FOR THE YEAR ENDED 31 MARCH 2024 (CONTINUED)

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Charities Act 2011, section 144, and report in accordance with regulations made under the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted is accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Based on our understanding of the charity and industry, we identified that the principal risks of noncompliance with laws and regulations related to breaches of UK regulatory principles, such as those governed by the Charity Commission, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Charities Act 2011. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the timing of recognition of grant income and expenditure to manipulate financial performance. Audit procedures performed included:

There are inherent limitations in the audit procedures described above. We are less likely to become

14

CYNGOR LLYFRAU CYMRU- THE BOOKS COUNCIL OF WALES INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF THE BOOKS COUNCIL OF WALES FOR THE YEAR ENDED 31 MARCH 2024 (CONTINUED) aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. As part of an audit in accordance with ISAS IUKI. we exercise professional judgement and maintain professional 5cepticism throughout the audit. We also: Identify and assess the risks of material mi5ststement of the financial statements, whether due to fraud or error. design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for ouropinion. The risk of not detecting a materlal misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of intemal control relevant to the audit in orderto design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting eslimate5 arbd related disclosures made by the trustees. 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 exi51s related to events or condition5 that may cast siBnificant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exlsts. we are required to draw attention in our auditorfs 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 auditorf5 report. However, future events or conditions may cause the charity to cease to continue as a going concern. 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 presentatior). We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and si8nificant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report This report is made 501ely to the charit￿$ trustees, as a body, In accordance with the Chorities Act 2011. Our audit work has been undertaken so that we might state to the charity's trustees those matters we 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 a55ume responsibility to anyone other than the charity and the charity's members as a body, for our audit work. for this report, or for the opinions we have formed. DATE.. 1.9.111 aoa.*....... BETHAN VAUGHAN Senior Statutory Auditor For and on behalf of LLFR JAMES Cyf. Statutory Auditors 15

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024

Note
Income through charitable
activities
Welsh Government Grants
3
Other Grants
4
Departmental Income
5
Other commercial activities
Distribution Centre
9
Investments
5
Total incoming resources
Resources expended
Charitable activities
Grants distributed
6/7
Specific projects
Charitable expenditure
8
Other commercial activities
Distribution Centre
9
Total resources expended
10
Net incoming resources before
transfers
Other recognised gains / (losses)
Actual gain / (loss) on defined
benefit scheme
22
Movement on investments
14
Transfer between funds
Net movement in funds
23
Balances brought forward at
1 April 2023
Balances carried forward at
31 March 2024
18–20		 Unrestricted
Designated
Restricted
Total Funds
Total Funds
Funds
Funds
Funds
2024
2023
£
£
£
£
£
1,129,278
130,000
3,419,323
4,678,601
5,688,167
–
–
226,807
226,807
146,421
216,069
–
–
216,069
199,811
3,162,094
–
–
3,162,094
4,373,598
–
4,035
4,035
4,948
4,507,441
130,000
3,650,165
8,287,606
10,412,945
–
–
2,600,722
2,600,722
2,600,722
–
–
993,902
993,902
1,253,388
1,322,294
256,772
353,920
1,932,986
1,986,019
3,132,884
6,590
–
3,139,474
4,175,959
4,455,178
263,362
3,948,544
8,667,084
10,016,088
52,263
(133,362)
(298,379)
(379,478)
396,857
–
–
-
–
2,861,000
–
–
4,954
4,954
(8,150)
4,034
–
(4,034)
–
–
2,852,850
56,297
(133,362)
(297,459)
(374,524)
3,249,707
1,108,291
1,471,576
1,380,444
3,960,311
710,604

1,164,588
1,338,214
1,082,985
3,585,787
3,960,311

A separate income and expenditure statement has not been prepared.

The Charity Trustees wish to note that the pension fund has influenced the final financial outcome. They wish to note that the Dyfed Pension Fund is beyond the charity’s control.

The notes on pages 19 to 37 form a full part of these accounts.

16

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

BALANCE SHEET AS AT 31 MARCH 2024

Note
Fixed assets
Tangible fixed assets
13
Investments
14
Current assets
Debtors
15
Distribution Centre stock
Cash at bank and in hand
16
Liabilities:Amounts falling
due within one year
17
Net current assets
Total assets less liabilities
Pension Fund
22
Funds
Unrestricted
18
Pension Fund
22
Unrestricted due to
pension adjustment
18
Designated
19
Restricted
20		 £
498,082
123,021
2,862,863		 2024
£
1,420,150
190,328		 2023
£
£
988,173
185,374
1,173,547
499,889
242,384
4,545,760
5,288,033
2,501,269
2,786,764
3,960,311
–
3,960,311
1,108,291
–
1,108,291
1,471,576
1,380,444
3,960,311		 2023
£
£
988,173
185,374
1,173,547
499,889
242,384
4,545,760
5,288,033
2,501,269
2,786,764
3,960,311
–
3,960,311
1,108,291
–
1,108,291
1,471,576
1,380,444
3,960,311
1,610,478 1,173,547
3,483,966
1,508,657
1,164,588
–		 5,288,033
2,501,269
1,108,291
–
1,975,309
3,585,787
–		 2,786,764
3,960,311
–
3,585,787 3,960,311
1,164,588
1,338,214
1,082,985		 1,108,291
1,471,576
1,380,444
3,585,787 3,960,311

Approved by the Trustees and Chief Executive of the Council on 19 July 2024 and signed on their behalf by:

LINDA TOMOS Chair

ALFRED OYEKOYA Treasurer

HELGARD KRAUSE Chief Executive

17

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

CASH FLOW FOR THE YEAR ENDED 31 MARCH 2024


Note
Cash flow from operating activities
Net cash provided by operating activities
24
Cash at beginning of year
Cash at end of year
24		 2024
£
(1,682,897)
4,545,760
2,862,863		 2023
£
3,329,963
1,215,797
4,545,760

18

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

NOTES TO THE ACCOUNTS

1. Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Cyngor Llyfrau Cymru – The Books Council of Wales meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value, unless otherwise stated in the relevant accounting policy note(s).

Stocks are stated at the lower of cost and net realisable value. Cost is calculated based on purchase value. Commercial value is based on the objective of selling less than the estimated cost of disposal.

Cyngor Llyfrau Cymru – The Books Council of Wales has a surplus balance on the Balance Sheet. The trustees are of the view that on this basis the charity is a going concern.

The accounts have been prepared on the assumption that the charity is able to carry on operating as a going concern, which the trustees consider appropriate.

d. Pension costs

Cyngor Llyfrau Cymru – The Books Council of Wales operates a defined benefit pension within the Dyfed Pension Fund. With the adoption of FRS 102 in April 2014, this liability is shown in full on the Balance Sheet. The adjustments to the financial statement following this adjustment are shown in note 18, with the full pension liability shown in note 22.

e. Investments

Investments are stated at market value.

f. Fixed assets

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

19

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

NOTES TO THE ACCOUNTS (CONTINUED)

Freehold land and buildings are not depreciated as the residual value is higher than the value in the Balance Sheet.

g. Grants payable

Grants payable are charged to the Statement of Financial Activities when a constructive obligation exists notwithstanding that they may be paid in the future accounting periods.

h. Incoming resources

All incoming resources are included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies apply to categories of income:

i. Tax

The Charity is exempt from the need to pay corporation tax due to its charitable status.

2. Statement of Financial Movement

The surplus for the year after withdrawing the following:

2024 2023
£ £
Bank costs 10,644 10,415
Auditors’ Fee 7,800 7,800
Depreciation 154,487 30,907

20

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

NOTES TO THE ACCOUNTS (CONTINUED)

3.
Grants received – Welsh Government
Creative Wales
Core funding
Publishing Grants for distribution
Capital grant
New Audiences Fund
Cost of Living fund
London Book Fair funding
Additional magazine funding
Welsh in Education department
Books for schools project
Catalogue funding
E-books project
British Sign Language project
Rhyngom project (previously Belonging)
Education department
Reading Promotion Schemes
Culture Division
Reading Well Scheme
Reading Promotion Schemes
Football World Cup Scheme (Team Wales 22)
4.
Other Grants
Cheltenham Reading Festival
UNESCO City of Literature partners
The Reading Agency		 2024
£
1,129,278
2,600,722
130,000
500,000
–
–
100,000
–
4,999
–
–
9,747
140,000
43,477
20,378
–
4,678,601
2024
£
–
10,000
216,807
226,807		 2023
£
1,129,278
2,600,722
557,000
400,000
500,000
80,000
135,000
–
–
–
–
17,280
140,000
49,893
24,963
54,031
5,688,167
2023
£
1,500
–
144,921
146,421

21

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

NOTES TO THE ACCOUNTS (CONTINUED)

5.
Income – Other Departments and Investments
Unrestricted funds
Editorial
Design
Communication and Marketing
Sales & Information
Children’s Books and Reading Promotion
Investment Income
Sundry Income
Restricted funds
Children’s Books and Reading Promotion
6.
Expenditure – Publishing Grants
Welsh-language
Grants towards books
Authors’ and illustrators’ grants
Appointments and training scheme
Grants towards magazines
Funding for Welsh-language press
Grants towards marketing
Partnerships and research
Grants to booksellers
Middle grade book project
English-language
Grants towards books
Grants towards magazines
Grants towards marketing
Appointments scheme
Authors’ grants
Classics
Training
Cyhoeddi Cymru Publishing Wales
Administrative costs
Total Publishing Grants		 3,000
4,035		 3,000
4,035
Note
7a
7b
7c
7d
7e
7f
7g

The above does not include one-off restricted grants (New Audiences Fund and Cost of Living Grant) distributed to publishers which are included in note 20 of the financial statements.

22

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

NOTES TO THE ACCOUNTS (CONTINUED)

7.
Grants per publisher
7a.
Welsh-language Publishers – Grants for books
Y Lolfa
Gwasg Carreg Gwalch
Gwasg y Dref Wen
Rily
Atebol
Gwasg y Bwthyn
Cyhoeddiadau Barddas
Llyfrau Broga
Cyhoeddiadau’r Gair
Graffeg
Urdd Gobaith Cymru
Firefly
University of Wales Press
Dalen Newydd
Honno
Cara
Dalen Llyfrau
O’r Pedwar Gwynt
Cyhoeddiadau Modern
Evaluation cost
7b.
Welsh-language Publishers Appointment Scheme
Y Lolfa
Gwasg Carreg Gwalch
Rily
Gwasg y Bwthyn
Cyhoeddiadau Barddas
Atebol
Cyhoeddiadau’r Gair
Training		 2024
£
101,315

93,027

54,850
45,725
41,278
36,790
24,520
16,185
5,027
3,855
3,000
3,000
3,000
2,200
1,425
1,475
–
–
–
1,320
437,992

2024
£
70,951
46,494
26,832
24,480
15,180
15,116
6,752
25,049
230,854
 2023
£
127,283
107,416
45,400
47,600
38,050
12,390
29,500
5,885
5,100
3,774
–
2,980
1,500
–
1,310
–
5,500
3,000
860
500
438,048
2023
£
80,284
42,204
26,832
24,480
15,180
15,116
6,752
8,003
218,851

23

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

NOTES TO THE ACCOUNTS (CONTINUED)

7c.
Welsh-language Publishers – Support for magazines
Barn
Golwg
O’r Pedwar Gwynt
Cip
Wcw
Y Cymro
Barddas
Lysh
Lingo Newydd
Cara
Y Selar
Y Wawr
Llafar Gwlad
Y Traethodydd
Cristion
Fferm a Thyddyn
Cost of assessment panel
7d.
Welsh-language Publishers – Support for magazines
Golwg
Newsquest
Panel costs
7e. English-language Publishers – Grants for books
Parthian
Firefly
Seren
Honno
University of Wales Press
Lucent Dreaming
Y Lolfa
Graffeg
Gwasg Carreg Gwalch
Pantolwen Press
Culture Matters
New Welsh Review
404 Ink
I-Pigeon		 2024
£
90,000
85,000
35,000
20,000
28,000
29,000
24,000
17,000
18,000
15,000
12,000
6,250
–
–
2,500
–
500
382,250

2024
£
200,000

–
–
200,000

2024
£
50,100
49,850
38,850
36,000
29,642
24,000
16,600
12,000
8,700
2,000
1,030
–
–
–
268,772
 2023
£
69,000
79,000
36,750
39,000
30,750
26,900
21,000
21,750
22,500
11,250
11,250
6,000
5,250
4,000
2,000
1,125
1,350
388,875
2023
£
150,000
66,145
1,000
217,145
2023
£
37,575
28,410
95,000
26,991
27,340
–
20,283
–
23,900
–
–
2,200
3,000
2,225
266,924

24

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

NOTES TO THE ACCOUNTS (CONTINUED)

7f. English-language Publishers – Support for magazines

New Welsh Review
Planet
Wales Arts Review
Poetry Wales
Nation.Cymru
The Welsh Agenda & Click on Wales
Grants for small magazines
Other magazine evaluation costs
7g. English-language Publishers – Appointments Scheme
Parthian
Honno
Seren
Firefly
University of Wales Press
Graffeg
Lucent Dreaming
Y Lolfa
Gwasg Carreg Gwalch		 2024
£
45,000
45,000
27,500
20,000
20,000
17,500
4,500
2,130
181,630

2024
£
25,300
22,500
19,000
17,000
8,000
8,000
8,000
7,500
4,300
119,600
 2023
£
33,750
45,000
20,625
15,000
15,000
13,125
5,400
–
147,900
2023
£
23,000
21,500
7,700
15,000
15,000
7,800
–
15,000
3,500
108,500
8.
Departmental Expenditure
Costs
Editorial
Design
Communication and Marketing
Sales
Corporate and Customer Services
Children’s Books
Reading Promotion Schemes
Reading Well Scheme
Renewal and Capital Expenditure and depreciation
Support costs
Unusual costs
Provision for holiday pay
Movement in Pension Scheme Obligation		 2024
£
86,433
105,610
238,459
197,535
264,481
85,621
160,378
193,542
256,772
337,134
7,021
–
1,932,986		 2023
£
117,356
109,989
230,001
259,210
238,714
77,145
167,641
155,420
48,414
316,350
(12,221)
278,000
1,986,019

25

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

NOTES TO THE ACCOUNTS (CONTINUED)

9. Income and Expenditure at the Distribution Centre

9.
Income and Expenditure at the Distribution Centre		 9.
Income and Expenditure at the Distribution Centre		 9.
Income and Expenditure at the Distribution Centre
2024
2023
£
£
Income
3,162,094
4,373,598
Costs
Books purchased
2,485,623
3,519,431
Salaries, insurance, pension
366,375
352,107
Running costs of vehicles
5,617
5,641
Travelling and subsistence
–
397
Carriage, post, packaging materials
152,471
170,212
Purchase and maintenance of equipment
49,562
43,164
Rent, rates, heating, lighting, telephone
18,550
12,432
Insurance, maintenance of buildings
16,912
16,293
Printing and stationery
2,498
4,596
Discounts allowed
21,484
28,222
Sundries
16,493
16,320
Bad Debts
(2,701)
564
Depreciation
6,590
6,590
Total Expenditure
3,139,474
4,175,959
Surplus for the year
22,620
197,639
10. Total cost of resources
Staff costs
Other costs
Grants
Total
Total
2024
2023
£
£
£
£
£
Direct charitable costs
1,588,389
4,683,906
2,394,589
8,667,084
10,016,088
11. Staff
2024
2023
£
£
Salaries
1,213,184
1,275,679
Employer’s National Insurance Contribution
123,492
127,566
Employer’s Pension Contribution
251,713
249,031
Pension past service deficit
–
80,000
Total salaries
1,588,389
1,732,276
The average number of staff employed during the year (Full-time posts)
36
39
2024
£
1,213,184
123,492
251,713
–
1,588,389
36		 2023
£
1,275,679
127,566
249,031
80,000
1,732,276
39

During the year, 1 member of staff (2023 – 1) earned, including national insurance, between £70,000 and £80,000 .

26

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES NOTES TO THE ACCOUNTS (CONTINUED)

Remuneration to key staff

Including the Chief Executive, there are six members of the Executive Team (2023 – 6) and the following payments were made during the year:

Salaries
Social Security Costs
Pension Costs		 2024
£
305,957
34,690
60,273
400,920		 2023
£
250,229
29,952
49,451
329,632

12. Remuneration to trustees

The trustees do not receive any remuneration as they are appointed by outside authorities or bodies and are not entitled to payment. The total cost paid to trustees (travelling to meetings etc.) during the year was £518 (2023: £1,146). Travel costs to volunteer members of the Board’s subcommittees amount to £2,288 (2023: £2,053).

13. Fixed Assets

Value
At 1 April 2023
Additions
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Provided during
the year
Disposals
At 31 March 2024
Net value
At 31 March 2024
At 31 March 2023		 Freehold
land and
buildings
£
253,008
–
–
253,008
–
–
–
–
253,008
253,008		 Computers
and digital
development
£
690,109
586,464
–
1,276,573
16,308
131,734
–
148,042
1,128,531
673,801		 Fixtures and
fittings
£
55,851
–
–
55,851
35,729
9,006
–
44,735
11,116
20,122		 Motor
vehicles
Total
£
£
68,736
1,067,704
–
586,464
–
–
68,736
1,654,168
27,494
79,531
13,747
154,487
–
–
41,241
234,018
27,495
1,420,150
41,242
988,173

All assets are used for charitable purposes.

27

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

NOTES TO THE ACCOUNTS (CONTINUED)

14. Investments

The market value of these investments as at the end of the financial year was £190,328 (2023 – £185,374).

The investments are held by BlackRock in their Charinco and Charinshare Investment Funds that are based in the UK.

The investments are recognised at their commercial value at the balance sheet date. The investments have been revalued, and any gains or losses are recognised in the Financial Activities Analysis.

15. Debtors

Trade debtors
Other debtors
Prepayments		 2024
£
269,970
215,382
12,730
498,082		 2023
£
180,776
307,405
11,708
499,889

All amounts stated are due in less than one year.

16. Cash at bank and in hand

Book Tokens
Others		 2024
£
734,902
2,127,961
2,862,863		 2023
£
890,103
3,655,657
4,545,760

17. Liabilities: Amounts falling due within one year

2024 2023
£ £
Trade creditors 109,256 1,631,555
Book Tokens 580,366 743,672
Taxation and social security 53,830 –
Other creditors 765,205 126,042
1,508,657 2,501,269

There are no creditors for more than one year, excluding book tokens, where one cannot be certain when they will be paid.

28

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

NOTES TO THE ACCOUNTS (CONTINUED)

18. Unrestricted Funds

Balance
1 April
Incoming
2023
£
£
Capital Funds
500,000
–
Income Funds
Pension Fund
–
–
Council
150,918
1,345,347
Distribution Centre
457,373
3,162,094
1,108,291
4,507,441
9. Designated Fund
Balance
1 April 2023
Incoming
£
£
Capital Funding
Welsh Government
1,240,882
130,000
Computer development fund
230,694
–
1,471,576
130,000		 Balance
1 April
Incoming
2023
£
£
Capital Funds
500,000
–
Income Funds
Pension Fund
–
–
Council
150,918
1,345,347
Distribution Centre
457,373
3,162,094
1,108,291
4,507,441
9. Designated Fund
Balance
1 April 2023
Incoming
£
£
Capital Funding
Welsh Government
1,240,882
130,000
Computer development fund
230,694
–
1,471,576
130,000		 Outgoing

£
–
–
(1,322,294)
(3,132,884)
(4,455,178)
Outgoing
£
(263,362)

–
(263,362)		 Transfers and
pensions
£
–
–
4,034
–
4,034
Transfer
£

–

–
–		 Balance
31 March
2024
£
500,000
–
178,005
486,583
1,164,588



Balance
31 March 2024
£
1,107,520
230,694
130,000 1,338,214

19. Designated Fund

29

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

NOTES TO THE ACCOUNTS (CONTINUED)

20. Restricted Funds

0. Restricted Funds
Dr Dewi Davies Fund
i
Promotion of Authors Fund
ii
Mary Vaughan Jones Award
iii
Cymdeithas Lyfrau Ceredigion
Fund
iv
Grants for distribution
Publishing Grants
v
Additional Magazines
vi
London Book Fair
vii
Cost of Living Grant
viii
New Audiences Fund
ix
Reading Promotion Schemes
x
Dept. of Welsh in Education
xi
Love Reading / Caru Darllen
xii
Catalogue
Rhyngom
xiii
Cheltenham Literary Festival
xiv
UNESCO City of Literature
xv
The Reading Agency – Reading
Well
xvi
Culture Division – Reading Well
xvii		 Balance
1 April
2023
£
61,959
47,425
4,849
75,990
–
135,000
31,096
103,518
400,000
–
29,209
429,195
–
(628)
1,237
–
57,616
3,978
1,380,444		 Incoming
£
1,254
–
–
2,781
2,600,722
100,000
–
–
500,000
160,378
–
–
4,999
9,747
–
10,000
216,807
43,477
3,650,165		 Outgoing
£
(300)
(2,743)
–
2,123
2,600,722
235,000
31,096
103,518
400,000
160,378
1,840
94,357
4,999
120,059
797
2,235
146,088
47,455
3,947,624		 Balance
31 March
2024
£
63,513
50,168
4,849
76,648
–
–
–
–
500,000
–
27,369
334,838
–
(110,940)
440
7,765
128,335
–
1,082,985

The interest on the fund is used to fund prizes for competitions to promote reading amongst children and young people.

ii. Promotion of Authors Fund

A general fund for the promotion of creative writing in Welsh.

The fund is used every three years to award a person for an outstanding contribution in the field of children’s books over a substantial period.

30

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

NOTES TO THE ACCOUNTS (CONTINUED)

vii. London Book Fair

Creative Wales awarded £80,000 to Cyhoeddi Cymru Publishing Wales to attend the London Book Fair in April 2023. Whilst most of the fund was used, a virement request has confirmed that the remaining funds can be used towards the London Book Fair 2024. viii. Cost of Living Grant

An application was made to Creative Wales for funding to support the book sector, and £500,000 was received in February 2023. The remaining funds were used during 2023/24.

31

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

NOTES TO THE ACCOUNTS (CONTINUED)

ix. New Audiences Fund

Creative Wales awarded £400,000 towards a second programme to strengthen and diversify the publishing industry in Wales. The grant beneficiaries from this fund were as follows:

Grant recipient Value (£)
Nation.Cymru 40,000
Cwlwm 33,000
Romani Cultural and Arts Company 30,000
Firefly 24,287
Xcellence 20,000
Rily 19,000
Gwasg y Bwthyn 18,660
Golwg 18,000
Institute of Welsh Affairs 16,835
New Welsh Review 16,000
Lucent Dreaming 15,000
Just Another Poet 15,000
Buzz Culture 15,000
CFFI-Cymru 10,000
Gwasg Carreg Gwalch 10,000
Afterlight Comics 10,000
Y Cymro 10,000
The Paper 10,000
Damian Kerlin 9,800
Biosphere Gardens 9,440
Y Lolfa 7,000
Womens Publishing Wales 7,000
Poetry Wales 6,250
Lez Reads 5,000
Proud Little Muslims 5,000
Parthian 5,000
Modron 4,975
Nature Writing 2,500
Honno 1,000
Klust Music 1,000
Tom Goddard 1,000
Translation of application 680
Training for Publishers 3,323
Panel Evaluation 250
TOTAL 400,000

32

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

NOTES TO THE ACCOUNTS (CONTINUED)

x. Reading Promotion Schemes

An annual grant is received which is limited to reading promotion schemes (Quick Reads/Stori Sydyn, World Book Day and the Summer Reading Challenge). £140,000 of the funding is awarded by the Welsh Government’s Education Department, £20,378 awarded by the Culture Division with the remainder being an external contribution from Waterstones. No funds were carried forward.

xi. Department of Welsh in Education

Remaining funds from the Iechyd Da project are being used to fund the Children’s Books and Reading Promotion Department.

xii. Caru Darllen / Love Reading

The Department of Education’s aim is for each state school pupil in Wales to be given a book. This project has multiple layers including books to food banks, individual books to pupils, book tokens to pupils (to make their own selection) and a box of books for schools. All the books have been distributed to schools and the book tokens shared to be returned to be exchanged by the booksellers by June 2024.

This is a 3-year project to develop books for children in Welsh and English. Jointly funded by the Department of Education and Department of Welsh in Education, the aim is to produce books which reflect the diversity of Wales.

xiv. Cheltenham Festivals

The Literary Festival provided £1,500 towards the Reading Teachers = Reading Pupils programme and its delivery in Wales. The Teachers Love Reading pilot is now underway and books have been purchased and teachers supply time covered to try and replicate the RTRP programme in Wales.

xv. UNESCO City of Literature

The aim of Ymgyrch Dinas Llên (City of Literature Campaign) is to make it possible for Wales to display its unique and rich literary and cultural heritage under UNESCO’s prestigious banner in Aberystwyth and Ceredigion. The Books Council is leading a collaboration between a group of local organisations to create an application. Grant funding was received from ARFOR along with partnership funding from members of the Stakeholder Group to create the application.

xvi. The Reading Agency – Reading Well

Books for teenage mental health were published during this year and the Reading Agency confirmed funding for a fifth programme (Dementia). The first payments were received and work on the Dementia programme began during 2023/24 and the payments and work will be completed in 2024/25.

The funding is provided by the Reading Agency, which is a UK registered charity receiving funding for this project from the Welsh Government’s Department of Health. This work is limited to the translation and publication of books relating to Dementia, and the books will be available in libraries and for purchase.

xvii. Culture Division – Reading Well

A grant of £45,000 was received towards the promotion of the Reading Well programmes. Promotional materials were produced for the libraries themselves as well as digital assets for social media, under the campaign name ‘Better with Books’. This was also supported with some advertising. We also collaborated with key partners to promote and distribute copies of the books.

33

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

NOTES TO THE ACCOUNTS (CONTINUED)

21. Analysis of Net Assets Between Funds

Restricted Funds
Dr Dewi Davies Fund
Promotion of Authors Fund
Mary Vaughan Jones Award
Cymdeithas Lyfrau Ceredigion Fund
Rhyngom
Department of Education
Love Reading / Caru Darllen scheme
New Audiences Fund
Cheltenham Literary Festival
UNESCO City of Literature
The Reading Agency – Reading Well
Restricted Funds
Designated Funds
Unrestricted Funds		 Fixed
Assets
£
63,513
50,168
–
76,648
–
–
–
–
–
–
–
190,329
1,167,142
253,007
1,610,478		 Net
Current
Assets
£
–
–
4,849
–
(110,940)
27,369
334,838
500,000
440
7,765
128,335
892,656
171,072
911,581
1,975,309		 Long Term
Creditors
£
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–		 Total
£
63,513
50,168
4,849
76,648
(110,940)
27,369
334,838
500,000
440
7,765
128,335
1,082,985
1,338,214
1,164,588
3,585,787

34

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES NOTES TO THE ACCOUNTS (CONTINUED)

22. Pension Scheme

The charity is a member of Dyfed Pension Scheme, which is a defined benefit scheme. For the year commencing 1 April 2023 the employer contributions were 19.7% of pensionable pay.

Date of last full Actuarial Valuation: 31 March 2022

ACTUARIAL ASSUMPTIONS
Financial Assumptions Beginning of Year End of Year
Rate of inflation 2.70% 2.7%
Rate of increase in salaries 4.20% 4.2%
Rate of increase in pensions 2.80% 2.8%
Discount rate 4.80% 4.9%

The end of year figures for the market value of the assets and split assets between investment categories have been calculated as at 31 March 2024. The corresponding figures for the start of the year have been calculated as at 31 March 2023.

Statement of Financial Position Items as at 31 March 2024

Market Value Assets
Liabilities
Surplus (Deficit)
Change in benefit obligation during year to 31 March 2024
Benefit obligation at beginning of the year
Employer Contributions
Net Interest
Administration Costs
Actuarial Gain or (Loss)
Benefit obligation at the end of the year		 £’000
15,804
(12,051)
3,753
2,484
252
(125)
(5)
1,147
3,753

35

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

NOTES TO THE ACCOUNTS (CONTINUED)

Additional Disclosure Pension Assets

Equities
Government Bonds
Other Bonds
Property
Liquidity
Total
Liabilities on 31.03.24		 Assets on
31.03.24
£000
%
11,50573
–
0
1,486
9
1,94412
869
5
15,804
12,051
 Assets on
31.03.23
£000
%
10,657
74
72
1
1,017
7
1,934
13
644
5
14,324
11,840

23. Net movement in the Funds

Unrestricted Funds
Income Funds
Distribution Centre
Council
Pension Fund
Designated Fund
Restricted Funds		 2024
£
29,210
27,087
–
(133,362)
(297,459)
(374,524)		 2023
£
204,229
18,454
2,583,000
494,839
(50,815)
3,249,707
24. Reconciliation of net income (expenditure) to net cash flow from operating 24. Reconciliation of net income (expenditure) to net cash flow from operating activities
2024 2023
£ £
Net Income for the year (374,524) 3,249,707
Adjustments:
Capital expenditure (586,464) (389,530)
Depreciation 154,487 30,907
(Gains)/losses in value of investments (4,954) 8,150
(Gains)/losses on defined benefit scheme – (2,583,000)
Decrease/(Increase) in stock 119,363 (35,933)
Decrease/(Increase) in debtors 1,807 5,205,006
(Decrease)/Increase in creditors (992,612) (2,155,344)
Net cash provided by operating activities (1,682,897) 3,329,963

36

CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES

NOTES TO THE ACCOUNTS (CONTINUED)

25. Related Parties

In Note 20, BAME Swansea are the beneficiaries of £39,000 grants in the New Audiences Fund scheme of which the Books Council’s Treasurer, Alfred Oyekoya, is a trustee.

Professor Jane Aaron (a Books Council’s Trustee) is a Honno Press trustee, that received £71,070 in various grants (including £15,000 cost of living grant (one-off) and £6,000 from the New Audiences Fund).

Lowri Ifor works for Museum Wales for which the Books Council of Wales has a trading relationship, but transactions are not controlled by Lowri in any way.

There are strict procedures in place to ensure that where an individual is connected to a deemed related party, they are not included in any part of the decision-making process of awarding grants to these entities.

37

Annual Report 2023–24

Books Council of Wales Castell Brychan, Aberystwyth, SY23 2JB

01970 624 151 post@books.wales books.wales Registered Charity Number 1192269

2