THE TOM-GALLON AWARD
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE
YEAR ENDED 31 DECEMBER 2022
CHARITY No. 212405
THE TOM-GALLON AWARD
Charity Information
| Trustees | The Management Committee of |
|---|---|
| The Society of Authors | |
| Charity Number | 212405 |
| Charity Offices | c/o The Society of Authors |
| 24 Bedford Row | |
| London WC1R 4EH | |
| Independent Examiner | Simon Goodridge FCA |
| Knox Cropper LLP | |
| Chartered Accountants | |
| 65 Leadenhall Street | |
| London EC3A 2AD | |
| Bankers | HSBC |
| The Peak | |
| 333 Vauxhall Bridge Road | |
| Victoria | |
| London SW1V 1EJ | |
| Investment Managers | abrdn |
| 280 Bishopsgate | |
| London | |
| EC2M 4AG |
THE TOM-GALLON AWARD
Contents
| Page | |
|---|---|
| Trustees' Report |
1 - 2 |
| Independent Examiner’s Report | 3 |
| Statement of Financial Activities | 4 |
| Balance Sheet | 5 |
| Notes to the Financial Statements | 6 - 9 |
REPORT OF THE TRUSTEES OF THE TOM-GALLON AWARD YEAR ENDED 31 DECEMBER 2022
The Trustees present their report and financial statements for the year ended 31[st] December 2022. The Trustees have adopted the provisions of the 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) (second edition effective 1 January 2019).
Trustees
The Management Committee of the Society of Authors is the permanent Trustee of the charity (the “Trustees”) and have acted throughout the year.
Investment powers and Risk Management
The Trust Deed authorises the Trustees to make and hold investments using the Capital Funds of the charity. These are shown in detail in the notes to the financial statements. The principal area of risk concerns the management of the investments, the income from which provides the principal source of funds from which the awards are paid. The investments are therefore kept under constant review by the investment managers.
Constitution, objects and policies
The Tom-Gallon Award was constituted under the will of the late Helen Kate Gallon in 1943 in memory of her brother. The policy is to provide an annual short story award.
Public Benefit
In reviewing the charity’s aims and objectives and in planning future activities, the Trustees refer to the Charity Commission’s general guidance on public benefit.
Reserves Policy
The Trustees policy is to operate on the basis of being able to continue to generate sufficient incoming resources to use towards meeting their charitable objectives and to accord with their principal terms. The Trustees are of the opinion that the funds remain sufficient to enable them to continue this ongoing objective. The charity has sufficient but not excessive funds to service its objective of making future charitable distributions.
Financial Review
The results for the year ended 31[st] December 2022 are attached and show a Net Movement in funds of £17,527 surplus (2021: £2,060 deficit) before investment losses of £3,092 (2021: £1,973 gains). The charitable awards made this year, amounted to £1,575 (2021: £1,575). The investments appear in the Balance Sheet at their market value of £17,284 (2021: £24,876). The Funds carried forward at 31[st] December 2022 stand at £41,242 (2021: £26,807) including Restricted Funds totalling £21,417 (2021: £nil) and the Trustees consider that the charity has sufficient income and capital to meet its obligations in the foreseeable future.
1
REPORT OF THE TRUSTEES OF THE TOM-GALLON AWARD YEAR ENDED 31 DECEMBER 2022
Statement of Trustees' Responsibilities
The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.
The law applicable to charities in England and Wales, the Charities Act 2011, requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources for that period. In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and apply them consistently;
-
observe the methods and the principles of the Charity SORP;
-
make judgements and estimates that are reasonable and prudent;
-
prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue to operate.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the board of Trustees on 18 May 2023 and signed on their behalf by:
Joanne Harris – Chair of the Management Committee, The Society of Authors
2
THE TOM-GALLON AWARD
YEAR ENDED 31[st] DECEMBER 2022
Independent Examiner’s Report to the Trustees of The Tom-Gallon Award
I report to the Trustees on my examination of the accounts of The Tom-Gallon Award for the year ended 31[st] December 2022.
Responsibilities and basis of report
As the charity trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (the Act).
I report in respect of my examination of the Trust’s accounts as required under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent Examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which give me cause to believe that in any material aspect:
-
a) accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
-
b) the accounts do not accord with those records; or
-
c) the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than the requirement that the accounts give a “true and fair view” which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Simon Goodridge FCA Knox Cropper LLP Chartered Accountants 65 Leadenhall Street London EC3A 2AD Date: 14 July 2023
3
THE TOM-GALLON AWARD
STATEMENT OF FINANCIAL ACTIVITIES
YEAR ENDED 31[st] DECEMBER 2022
| Incoming Resources Investment Income 2 Donations - ALCS Grant - Hawthornden Literary Retreat Total Income Expenditure Raising Funds: Investment Management Fees Charitable Activities 3 Total Expenditure Net Income/ (expenditure) before Investment gains/(losses) Net gains/(losses) on investments 5 Net income/(expenditure) Reconciliation of funds: Total funds brought forward Total funds carried forward |
2022 Unrestricted 636 6,074 - 6,710 92 10,508 10,600 (3,890) (3,092) (6,982) 26,807 £19,825 |
2022 Restricted - - 21,417 21,417 - - - 21,417 - 21,417 - £21,417 |
2022 Total 636 6,074 21,417 28,127 92 10,508 10,600 17,527 (3,092) 14,435 26,807 £41,242 |
2021 Total – all unrestricted 607 7,075 - |
|---|---|---|---|---|
| 7,682 124 9,618 |
||||
| 9,742 (2,060) |
||||
| 1,973 | ||||
| (87) 26,894 |
||||
| £26,807 |
4
THE TOM-GALLON AWARD
BALANCE SHEET
31[st] DECEMBER 2022
| Notes FIXED ASSETS Quoted Investments – at Market Value 4 CURRENT ASSETS Cash held by Investment Managers Cash at bank CURRENT LIABILITIES Amounts due within one year 6 Net Current Assets TOTAL NET ASSETS Represented by: ACCUMULATED FUND Restricted Funds Unrestricted Funds TOTAL FUNDS |
2022 £ £ 17,284 411 24,199 24,610 (652) 23,958 £41,242 21,417 19,825 £41,242 |
2021 £ £ 24,876 877 1,685 2,562 (631) 1,931 £26,807 - 26,807 £26,807 |
2021 £ £ 24,876 877 1,685 2,562 (631) 1,931 £26,807 - 26,807 £26,807 |
|---|---|---|---|
| £26,807 | |||
| - 26,807 |
|||
| £26,807 |
Approved by the Trustees on 18 May 2023 and signed on their behalf
Joanne Harris – Chair of the Management Committee, The Society of Authors
The notes form part of these Financial Statements
5
THE TOM-GALLON AWARD
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31[st] DECEMBER 2022
1. ACCOUNTING POLICIES
- a) The Financial Statements have been prepared in accordance with the Financial Reporting Standard 102 and the Charities SORP (FRS102 second edition) and in compliance with the Charities Act 2011.
The charity is a public benefit entity under FRS102.
-
b) The income from investments and bank interest received represent the actual income receivable in the year.
-
c) Awards paid include all amounts payable in the year in accordance with the terms of the Trust Deed. Other expenditure is included on the basis of amounts payable for the year.
-
d) Unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objects of the charity.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the charity for particular purpose.
-
e) The quoted investments are included in the Financial Statements at market value to comply with the Statement of Recommended Practice.
-
f) The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern for a period of at least twelve months from the date of approval of these financial statements.
The Trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
2.
INVESTMENT INCOME
| VESTMENT INCOME | ||
|---|---|---|
| NON GOVERNMENT BOND FUNDS ASC (Offshore) Global Fixed Interest Fund Z Income ASC (Offshore) Sterling Fixed Interest Fund Z Income MULTI ASSET CHARITY INVESTMENT FUNDS BNY Mellon Funds ASC Income Fund Z TOTAL |
Gross Income 2022 £ 101 60 - 475 £636 |
Gross Income 2021 £ 100 65 87 355 |
| £607 |
6
THE TOM-GALLON AWARD
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31[st] DECEMBER 2022
| 3. CHARITABLE ACTIVITIES 2022 £ DIRECT Awards paid 1,575 INDIRECT Judges’ fees 4,400 Administration costs 3,120 Other expenses 783 GOVERNANCE Independent Examination Fee 630 £10,508 4. INVESTMENTS Cost £ NON GOVERNMENT BOND FUNDS ASC (Offshore) Global Fixed Interest Fund Z Income 2,053 ASC (Offshore) Sterling Fixed Interest Fund Z Income 1,856 3,909 MULTI ASSET CHARITY INVESTMENT FUNDS ASC Income Fund Z 14,320 Totals at – 31stDecember 2022 £18,229 31stDecember 2021 £22,564 5. MOVEMENT IN MARKET VALUE OF INVESTMENTS 2022 Market Value at the beginning of the year 24,876 Additions - 18,640 Disposal proceeds (4,500) (20,218) Investment gains/(losses) (3,092) 1,973 (7,592) Market value at year end £17,284 Historic cost of investments £18,229 Analysis on investment gains Realised gains/(losses) (311) Unrealised gains/(losses) (2,781) £(3,092) |
2022 £ 1,575 4,400 3,120 783 630 |
2022 £ 1,575 4,400 3,120 783 630 |
2021 £ 1,575 4,320 3,017 106 600 £9,618 Market Value £ 1,630 1,596 3,226 14,058 £17,284 £24,876 2021 24,481 395 £24,876 £22,564 102 1,871 £1,973 |
2021 £ 1,575 4,320 3,017 106 600 £9,618 Market Value £ 1,630 1,596 3,226 14,058 £17,284 £24,876 2021 24,481 395 £24,876 £22,564 102 1,871 £1,973 |
|
|---|---|---|---|---|---|
| £24,876 | |||||
| £22,564 | |||||
| 102 1,871 |
|||||
| £1,973 |
7
THE TOM-GALLON AWARD
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31[st] DECEMBER 2022
6. CREDITORS AND ACCRUALS
| Professional Fees Investment Managers’ Fees |
630 22 £652 |
600 31 |
|---|---|---|
| £631 |
7 . RESTRICTED FUNDS
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held to be applied for specific purposes.
| Hawthornden Literary Retreat |
Balance at 1 January 2022 Income Expenditure Balance at 31 December 2022 £ £ £ £ - 21,417 - 21,417 |
|---|---|
| 21,417 - 21,417 |
The Hawthornden Literary Retreat restricted funds are to enable the Tom Gallon prize to continue for the next three years and to enable the prize monies to be increased for the winner and runner up and to also offer four shortlisted authors prize monies.
8 . ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Fund balances at 31st December 2022 are represented by Tangible Fixed Assets Current Assets Current Liabilities Net Total Net Assets |
Unrestricted Funds £ 17,284 3,193 (652) 19,825 |
Restricted Funds £ - 21,417 - 21,417 |
Total £ 17,284 24,610 (652) |
|---|---|---|---|
| 41,242 |
9. RELATED PARTY DISCLOSURES
The Society of Authors, which is the corporate Trustee of the charity, carried out management services for the charity and charged a management fee for the year amounting to £3,120 (2021: £3,017). There were no other related party transactions in the year.
The Hawthornden Literary Retreat grant of £21,417 was received by The Society of Authors from CAF America and regranted to the charity.
8
THE TOM-GALLON AWARD
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31[st] DECEMBER 2022
10. REVIEW OF FUNDS
During the year the Trustees reviewed the charity’s investment policy. The review identified that the charity has a permanent endowment, however for at least the last 10 years the Trustees have informally followed a total return basis to allow capital returns to fund some of the charity’s annual expenditure. Following legal advice, the Trustees passed a resolution on 26 May 2022 in accordance with s282 Charities Act 2011 that the objects of the Trust to which the fund is subject could be carried out more effectively if the capital of the Fund could be expended as well as income accruing to it, rather than just income. This resolution has been sent to the Charity Commission.
The Trustees have also reported to the Charity Commission on the historical position and are waiting to hear back with their response.
9