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2021-12-31-accounts

THE AUTHORS' CONTINGENCY FUND

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE

YEAR ENDED 31 DECEMBER 2021

CHARITY No. 212406

THE AUTHORS' CONTINGENCY FUND

Charity Information

Trustees The Management Committee of
The Society of Authors
Charity Number 212406
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
Bow Bells House
1 Bread Street
London EC4M 9HH

THE AUTHORS' CONTINGENCY FUND

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 - 12

REPORT OF THE TRUSTEES OF THE AUTHORS' CONTINGENCY FUND

YEAR ENDED 31 DECEMBER 2021

The Trustees present their report and financial statements for the year ended 31[st] December 2021. 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 Society of Authors is the corporate Trustee of the charity and has 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

This Charity was constituted under a Trust Deed dated 21[st] July 1960, amended on 28[th] March 1963, to pay grants to authors in financial need. The policy of the Authors' Contingency Fund continues to be to pay grants in accordance with the Trust Deed out of the income generated by the investments and donations and to seek additional donations wherever possible.

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 toward 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.

Achievements and Performance of the charity

Since 2020, Covid19 has had a significant and detrimental impact on the earnings of all kinds of writers. The Society of Authors’ Contingency Fund has huge experience and robust, speedy processes in dealing with applicants suffering financial hardship and the Contingency Fund has continued to receive donations in 2021 from The Royal Literary Fund (£150,000), Amazon (£25,000), Authors' Licensing and Collecting Society (£20,000), World of Books (£18,250), Random House Group (£10,000), Bloomsbury Publishing (£5,000), Linbury Trust (£4,000) as well as donations from trusts and individuals (£57,778) to help support these writers. The charity would like to thank everyone who has generously donated.

The criteria for these grants was to provide provision for the relief of Authors who were suffering financial difficulties and due to the effect of the Covid19 pandemic, the number of applicants for these grants had significantly increased and the above generous donations enabled The Society of Authors’ Contingency Fund to support more writers in this time of need. The agreed small grants, typically in the region of £1,000-£2,000 were to provide quick emergency relief to these authors. All grants were assessed on the basis of an application form and covering statement supplied by the applicant, these were all sifted by staff for eligibility and where necessary additional information was requested. All eligible applications were then forwarded to assessors to read and review. The Assessors then did a final review at regular meetings (always two assessors and one member of staff) where the final decision and the amount to be awarded was recorded. While the pandemic is still going on the aim of the Authors’ Contingency Fund is to continue to fundraise and support writers whose earnings are still being impacted.

1

REPORT OF THE TRUSTEES OF THE AUTHORS' CONTINGENCY FUND

YEAR ENDED 31 DECEMBER 2021

Financial Review

The results for the year ended 31[st] December 2021 are attached and show a Net decrease in funds of £55,482 (2020: £93,146 increase) after including grants and donations received of £289,836 (2020: £1,343,326) and paying Charitable Grants of £357,900 (2020: £1,266,777) helping 287 authors during the year (2020: 890). The realised surplus on the disposal of investments this year was £2,237 (2020: £nil) and the unrealised increase in market value of investments this year amounted to £46,874 (2020: £2,043 increase). The investments appear in the Balance Sheet at their market value at of £619,902 (2020: £572,133). As a result, the Total Funds carried forward at the year-end amount to £693,748 (2020: £700,119) comprising restricted funds of £1,880 and unrestricted funds of £691,868 and the Trustees consider that the charity has sufficient income and capital to meet its obligations in the foreseeable future.

The Covid-19 pandemic has affected the way the charity and the Society of Authors works. The charity continues to support authors and other writers affected by the pandemic. The Fund was very successful and in all 287 grants have been awarded.

The Covid19 pandemic has increased the number of applications to the Authors’ Contingency Fund which has resulted in increased administration for the Contingency Fund as the number of successful grants increased from 63 in 2019 (pre-pandemic) to 287 in 2021, an increase of over 350%. The Society of Authors did not increase the Management Fee charged to The Contingency Fund as The Society of Authors aim was to distribute all the extra funds raised by the charity as grants to writers and not to increase administration costs to the charity.

The ordinary work of the charity funded from investment income was also affected. The value of the charity’s investment portfolio has recovered the losses suffered in March/April 2020 and has increased in value over the course of the whole year before disposals as set out in the notes to the financial statements. The Covid19 pandemic has raised awareness of this fund and the charity anticipates that applications will be higher than 2019 levels and the charity is aiming to continue to fundraise where necessary to provide additional support where required.

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:

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 26 May 2022 and signed on their behalf by:

Joanne Harris – Chair of the Management Committee, The Society of Authors

2

THE AUTHORS' CONTINGENCY FUND

YEAR ENDED 31[st] DECEMBER 2021

Independent Examiner’s Report to the Trustees of The Authors’ Contingency Fund

I report to the trustees on my examination of the accounts of The Authors’ Contingency Fund for the year ended 31[st] December 2021.

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

Since the Trust’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I can confirm that I am qualified to undertake the examination because I am a registered member of the Institute of Chartered Accountants in England and Wales which is one of the listed bodies.

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:

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: 30 May 2022

3

THE AUTHORS’ CONTINGENCY FUND

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2021

Notes
Income
Grants and Donations
2
Investment Income - Dividends
3
- Bank Interest
Other income
5
Total
Expenditure
Raising funds:
Investment Management Fees
Charitable activities
4
Total
Net income/(expenditure)
before investment
gains/(losses)
Net gains/(losses) on investments
8
Net income/(expenditure)
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Unrestricted
£
289,836
14,907
192
20,302
325,237
3,063
377,656
380,719
(55,482)
49,111
(6,371)
698,239
£691,868
Restricted
£
-
-
-
-
-
-
-
-
-
-
-
1,880
£1,880
2021
Total
£
289,836
14,907
192
20,302
325,237
3,063
377,656
380,719
(55,482)
49,111
(6,371)
700,119
£693,748
2020
Total
£
1,343,326
12,854
30
26,415
1,382,625
3,674
1,285,805
1,289,479
93,146
2,043
95,189
604,930
£700,119

The notes form part of these Financial Statements

4

THE AUTHORS’ CONTINGENCY FUND

BALANCE SHEET

31[st] DECEMBER 2021

Notes
FIXED ASSETS
Quoted Investments – at Market
Value
6
CURRENT ASSETS
Debtors and Prepayments
9
Cash held by Investment
Managers
Cash at bank
CURRENT LIABILITIES
Amounts due within one year
10
Net Current Assets
TOTAL NET ASSETS
13
Represented by:
ACCUMULATED FUNDS
Restricted Funds
11
Unrestricted Funds
12
TOTAL FUNDS
2021
£
£
619,902
18,250
11,530
47,258
77,038
(3,192)
73,846
£693,748
1,880
691,868
£693,748
2020
£
£
572,133
13,029
8,395
119,754
141,178
(13,192)
127,986
£700,119
1,880
698,239
£700,119
2020
£
£
572,133
13,029
8,395
119,754
141,178
(13,192)
127,986
£700,119
1,880
698,239
£700,119
£700,119
1,880
698,239
£700,119

Approved by the Trustees on 26 May 2022 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 AUTHORS’ CONTINGENCY FUND

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1 ACCOUNTING POLICIES

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 purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.

The UK economy has been seriously affected by the Covid-19 pandemic. The charity’s income is derived from its investment portfolio whose value has recovered the losses suffered in March/April 2020. The trustees believe that its investments will continue to provide sufficient resources in the foreseeable future to enable the charity to maintain its ordinary activities and have concluded that there are no material uncertainties about the Trust’s ability to continue as a going concern.

6

THE AUTHORS’ CONTINGENCY FUND

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

2. GRANTS AND DONATIONS


GRANTS AND DONATIONS
Grants and donations
Authors Emergency Fund
Arts Council England
Creative Scotland
Other donations
Unrestricted
£
-
-
289,836
£289,836
Restricted
£
-
-
-
-
2021
Total
£
289,836
£289,836
2020
Total
£
400,000
207,695
735,631
£1,343,326

3. INVESTMENT 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
2021
£
2,423
1,612
4,035
2,013
8,859
£14,907
Gross
Income
2020
£
2,196
1,692
3,888
8,966
-
£12,854

7

THE AUTHORS’ CONTINGENCY FUND

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

4. CHARITABLE ACTIVITIES

DIRECT
Awards paid
INDIRECT
Assessors fees
Administration costs
Other expenses
GOVERNANCE
Independent Examiner’s fee
Comparative year
DIRECT
Awards paid
INDIRECT
Assessors fees
Administration costs
Other expenses
GOVERNANCE
Audit fee
5.
OTHER INCOME
Other income
Royalties
Unrestricted
£
357,900
8,750
8,585
21
2,400
£377,656
Unrestricted
£
661,082
4,060
8,335
85
4,548
£678,110
Unrestricted
£
357,900
8,750
8,585
21
2,400
£377,656
Unrestricted
£
661,082
4,060
8,335
85
4,548
£678,110
Restricted
£
-
-
-
-
-
-
Restricted
£
605,695
2,000
-
-
-
£607,695
2021
£
10,582
9,720
£20,302
2021
Total
£
357,900
8,750
8,585
21
2,400
£377,656
2020
Total
£
1,266,777
6,060
8,335
85
4,548
£678,110 £1,285,805
2020
£
16,179
10,236
£26,415

8

THE AUTHORS’ CONTINGENCY FUND

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

6. INVESTMENTS

Cost
£
NON GOVERNMENT BOND FUNDS
ASC (Offshore) Global Fixed Interest Fund Z Income
53,452
ASC (Offshore) Sterling Fixed Interest Fund Z Income
49,402
102,854
MULTI ASSET CHARITY INVESTMENT FUNDS
ASC Income Fund Z
459,285
Totals at – 31stDecember 2021
£562,139
31stDecember 2020
£320,019
7.
MOVEMENT IN COST ON INVESTMENTS
2021
£
£
Cost at 1 January 2021
320,019
Additions
ASC Income Fund Z
459,923
459,923
Disposals
ASC (Offshore) Sterling Fixed Interest
(1,741)
BNY Mellon Funds
(215,424)
ASC Income Fund Z
(638)
(217,803)
Cost at 31 December 2021
£562,139
8.
MOVEMENT IN MARKET VALUES OF INVESTMENTS
2021
£
£
£
Market Value at the beginning of the year
572,133
Additions
459,923
-
Disposal Proceeds
(461,265)
Investment Gains/(losses)
49,111
2,043
47,769
Market value at year end
£619,902
Realised gains/(losses)
2,237
Unrealised gains/(losses)
46,874
£49,111
Cost
£
NON GOVERNMENT BOND FUNDS
ASC (Offshore) Global Fixed Interest Fund Z Income
53,452
ASC (Offshore) Sterling Fixed Interest Fund Z Income
49,402
102,854
MULTI ASSET CHARITY INVESTMENT FUNDS
ASC Income Fund Z
459,285
Totals at – 31stDecember 2021
£562,139
31stDecember 2020
£320,019
7.
MOVEMENT IN COST ON INVESTMENTS
2021
£
£
Cost at 1 January 2021
320,019
Additions
ASC Income Fund Z
459,923
459,923
Disposals
ASC (Offshore) Sterling Fixed Interest
(1,741)
BNY Mellon Funds
(215,424)
ASC Income Fund Z
(638)
(217,803)
Cost at 31 December 2021
£562,139
8.
MOVEMENT IN MARKET VALUES OF INVESTMENTS
2021
£
£
£
Market Value at the beginning of the year
572,133
Additions
459,923
-
Disposal Proceeds
(461,265)
Investment Gains/(losses)
49,111
2,043
47,769
Market value at year end
£619,902
Realised gains/(losses)
2,237
Unrealised gains/(losses)
46,874
£49,111
Cost
£
NON GOVERNMENT BOND FUNDS
ASC (Offshore) Global Fixed Interest Fund Z Income
53,452
ASC (Offshore) Sterling Fixed Interest Fund Z Income
49,402
102,854
MULTI ASSET CHARITY INVESTMENT FUNDS
ASC Income Fund Z
459,285
Totals at – 31stDecember 2021
£562,139
31stDecember 2020
£320,019
7.
MOVEMENT IN COST ON INVESTMENTS
2021
£
£
Cost at 1 January 2021
320,019
Additions
ASC Income Fund Z
459,923
459,923
Disposals
ASC (Offshore) Sterling Fixed Interest
(1,741)
BNY Mellon Funds
(215,424)
ASC Income Fund Z
(638)
(217,803)
Cost at 31 December 2021
£562,139
8.
MOVEMENT IN MARKET VALUES OF INVESTMENTS
2021
£
£
£
Market Value at the beginning of the year
572,133
Additions
459,923
-
Disposal Proceeds
(461,265)
Investment Gains/(losses)
49,111
2,043
47,769
Market value at year end
£619,902
Realised gains/(losses)
2,237
Unrealised gains/(losses)
46,874
£49,111
Market
Value
£
53,730
54,662
108,392
511,510
£619,902
£572,133
2020
£
£
320,019
-
-
£320,019
2020
£
570,090

2,043
£572,133
-
2,043
£2,043
£
-
2,043

9

THE AUTHORS’ CONTINGENCY FUND

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

9. DEBTORS AND PREPAYMENTS

Debtors
Other debtors
10.
CREDITORS AND ACCRUALS
Investment Managers’ Fees
Professional Fees
Accruals
2021
£
-
18,250
£18,250
2021
£
792
2,400
-
£3,192
2020
£
11,029
2,000
£13,029
2020
£
842
4,500
7,850
£13,192

11. RESTRICTED FUNDS

The Francis W Reckitt
Arts Trust
Total
Balance at
1 January
2021
Income
Expenditure
Transfers
Balance at
31 December
2021
£
£
£
£
£
1,880
-
-
-
1,880
£1,880
£-
£-
£-
£1,880

Grants from The Francis W Reckitt Arts Trust were provided to fund residential stays for professional writers.

Prior year
The Francis W Reckitt
Arts Trust
Authors Emergency Fund
Arts Council England
Creative Scotland
Total
Balance at
1 January
2020
Income
Expenditure
Transfers
Balance at
31 December
2020
£
£
£
£
£
1,880
-
-
-
1,880
-
400,000
(400,000)
-
-
-
207,695
(207,695)
-
-
£1,880
£607,695
£(607,695)
-
£1,880

The Authors’ Emergency Fund was set up in response to the significant and detrimental impact Covid19 has had on the earnings of all kinds of writers with the aim of providing an industry wide Emergency Fund to be administered through the Society of Authors’ Contingency Fund as the Contingency Fund already had huge experience and robust, speedy processes to process applicants. The Authors Emergency Fund was set up to funnel and distribute donations from various organisations and individuals. The funding from Arts Council England and Creative Scotland was restricted to particular applicants. The other funds raised have been treated as unrestricted (see note 12) as they can be used inaccordance with the general objects of the charity which are to pay grants to authors in financial need.

10

THE AUTHORS’ CONTINGENCY FUND

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

12. UNRESTRICTED FUNDS

Unrestricted Fund
Prior year
Unrestricted Fund
Balance at
1 January
2021
Income
Expenditure
Balance at
31 December
2021
£
£
£
£
698,239
374,348
(380,719)
691,868
£698,239
£374,348
£(380,719)
£691,868
Balance at
1 January
2020
Income
Expenditure
Balance at
31 December
2020
£
£
£
£
603,050
776,973
(681,784)
698,239
£603,050
£776,973
£(681,784)
£698,239

13. NET ASSETS

Fixed asset investments
Net current assets
Prior year
Fixed asset investments
Net current assets
Unrestricted
£
619,902
71,966
£691,868
Unrestricted
£
572,133
126,106
£698,239
Restricted
£
-
1,880
1,880
Restricted
£
-
1,880
£1,880
2021
Total
£
619,902
73,846
£693,748
2020
Total
£
572,133
127,986
£700,119

14. TRUSTEES REMUNERATION

No Trustee received any remuneration in respect of their services as trustees during the year (2020: £-). No trustees were reimbursed for our of pocket travelling expenses in the year (2020: £-).

11

THE AUTHORS’ CONTINGENCY FUND

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

15. 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 £8,585 (2020: £8,335). Margaret Skea, a member of the Management committee of the Society of Authors, was a recipient of a grant of £1,500 in the prior year. The grant application was made as part of the Authors Emergency Fund and was considered at arms length as part of the usual grant assessment process. There were no other related party transactions in either period.

16. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

Income
Donations and Legacies
Investment Income - Dividends
- Bank Interest
Other income
Total
Expenditure
Raising funds:
Investment Management Fees
Charitable activities
Total
Net income/(expenditure) before
Investment gains/(losses)
Net gains/(losses) on investments
Net income/(expenditure)
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Unrestricted
£
735,631
12,854
30
26,415
774,930
3,674
678,110
681,784
93,146
2,043
95,189
603,050
£698,239
Restricted
£
607,695
-
-
-
607,695
-
607,695
607,695
-
-
-
1,880
£1,880
2020
Total
£
1,343,326
12,854
30
26,415
1,382,625
3,674
1,285,805
1,289,479
93,146
2,043
95,189
604,930
£700,119

12