## **The Royal Literary Fund** Trustees’ report and financial statements
Registered Charity number 219952 31 March 2022
3 Johnson’s Court off Fleet Street London EC4A 3EA Telephone : 020 7353 7159 www.rlf.org.uk
## **Contents**
|Trustees’ annual report|1|
|---|---|
|Statement of trustees’ responsibilities in respect of the trustees’ annual report||
|and fnancial statements|14|
|Independent auditor’s report to the trustees of The Royal Literary Fund|15|
|Statement of fnancial activities|20|
|Balance sheet|22|
|Cash fow statement|23|
|Notes to the Financial Statements|24|
|Administrative Information|38|
|Some applicants helped during the year|40|
|Extracts from thank you letters|41|
|Members|42|
**Trustees’ Annual Report**
## **Her Late Majesty Queen Elizabeth**
As these accounts were being prepared we received the sad news of the death of Her Majesty Queen Elizabeth II. Her Majesty was the Fund’s patron throughout her reign, as were her predecessors since King George IV. We have been immensely grateful for Her Majesty’s patronage and for the support she showed to literature and the arts in the United Kingdom and throughout the English-speaking world. The Royal Literary Fund has shared our condolences with His Majesty The King and all the members of the Royal Family.
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## **Trustees’ Report** _(continued)_
_When organisations such as the RLF step in to help a writer, they are, I humbly suggest, doing something for the culture we all share. The books of tomorrow become the culture we and our children, and their children, eventually inhabit._
## **Writer supported by the RLF**
## **Introduction**
In April 2021 the Fund welcomed a new Chief Executive, Edward Kemp, formerly Director of the Royal Academy of Dramatic Art and a playwright, dramaturg and translator.
Following Edward’s arrival, Eileen Gunn retired from the RLF after 22 years as Secretary, later re-titled Chief Executive. Eileen leaves behind a remarkable legacy, having steered the RLF through a period when charitable expenditure more than doubled, from £2.5m in 1999 to £5.8m in 2021, and which included the creation of the Fellowship programme and the subsequent expansion of Education and Social Sector work; over 500 writers and their families have been the direct beneficiaries of RLF grants during Eileen’s time: an impressive contribution to literature in the UK. Justine Palmer has taken on the role of Grants Manager on an interim basis while we conduct a review of our grantgiving activity and operation.
We also said farewell this year to two long-standing trustees, Bruce Hunter and Paula Johnson, both of whom, as Treasurer and Registrar respectively, have contributed many years of loyal service to the RLF. Joanna Trollope also stepped down as a trustee in this year. We welcomed new trustees, Nelle Andrew, Colin Ludlow and Judith Murray; George Graham became a Treasurer. Hilary Hale took on the role of Deputy President and chairs the General Committee when Ian Blatchford is unavailable.
The Fund’s Regulations have been redrafted and several revisions are proposed to the Byelaws in order to bring the RLF’s governance and operation in line with contemporary practice.
In April we launched WritersMosaic, a new initiative featuring contemporary writers who reflect the UK’s widening literary culture. The editorial board of WritersMosaic, all of whom are former RLF university Fellows, operate under the leadership of Colin Grant, who has become a member of staff.
Two workshops were conducted in autumn 2021 to consider future direction and strategy. Facilitated by staff from RADA Business, these workshops were the first occasion that stakeholders from across the RLF – trustees, staff, beneficiaries and former Fellows – have come together to consider the Fund’s work in totality.
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## **Trustees’ Report** _(continued)_
The Covid-19 pandemic continued to have an impact on the RLF’s activities. There was an increase in applications from writers, in particular playwrights, whose work had been directly impacted by the pandemic. The General Committee and Sub-committees met in-person, online and in hybrid format during the year. A significant number of RLF Fellows delivered their tutorials online, either for health reasons or due to the restrictions within the university; likewise, some Reading Round groups moved online where this was the preference of the participants or required by the venue.
## **Organisational Structure**
The Fund was established in 1790. It was incorporated and granted a Charter in 1818 and in 1842 this was made a Royal Charter. Subsequently, the Charter has been revised by Order of the Privy Council in 1968, 2002 and 2006.
The Fund is governed by the General Committee chaired by the President, Sir Ian Blatchford, and in his absence by the Deputy President, Hilary Hale.
The General Committee defines the RLF’s strategic direction and policies. Trustees ensure that the activities of the Fund are in accordance with its Royal Charter.
The Committee currently meets eleven times a year. Four of these meetings are nominated as ‘Board’ meetings when the committee consider the whole range of the RLF’s activity, receiving and reviewing reports from sub-committees and considering the financial and strategic direction of the Fund, as well as grantgiving. The remaining seven meetings focus primarily on grant-giving activity.
The General Committee delegates discussion and consideration of some areas of policy and activity to sub-committees. These are currently:
**Finance and Investment** (including Remuneration) – reviews budgeting, financial and investment strategy, financial and investment performance.
**Nominations** – considers the appointment of trustees and co-opted advisors in collaboration with the Chief Executive and makes recommendations to the General Committee.
**Education** – reviews the work of the Education team, including the RLF Fellowships, Bridge, Reading Round and Social Sector. Oversees the appointment of RLF Fellows.
Executive decisions are delegated to the Chief Executive, the Director of Education and the Director of Digital in their respective areas of responsibility.
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**Trustees’ Report** _(continued)_
## **Charitable Objects**
The Royal Charter (2006) delineates two charitable objects:
- (i) The relief of poor and distressed authors of published works of approved literary merit including important contributions to Periodical Literature and of the families of such deceased authors who are themselves in distress and in need of relief; and
- (ii) the advancement of public education and the improvement of the public taste in the field of literary work.
## **Public Benefit**
When setting the objectives and planning the work of the charity for the year the trustees have given careful consideration to the Charity Commission’s general guidance on public benefit.
## **Grant-giving**
_I’ve been so grateful to receive this enormous help over the last few years. It still feels unreal that something like the RLF exists and I have been lucky enough to benefit from its benevolence._ **Writer supported by the RLF**
Writers who apply to the Fund for a grant must submit details of their published or performed works which meet the eligibility criteria and may be asked to provide samples of their work.
Where writers have provided samples of their work, these are read by two members of the General Committee, who then report at the monthly meeting and recommend whether the writer meets the appropriate criteria. Literary merit may on occasion be passed by acclaim where the trustees are confident of the writers’ eminence in their field. Once literary merit has been passed, the writer’s circumstances are considered and, if need is established, a grant is awarded.
Grants are usually one of three kinds: a one-off grant, a non-renewable recurring grant across two or three years, a recurring grant across five years which can be renewed. The last of these, formerly referred to as ‘pensions’, are inflation-indexed and generally only awarded to writers above pensionable age.
The total sum of grants made to beneficiaries during the year was £1,614,097. The total number of individual writers assisted between 01 April 2021 and 31 March 2022 was 225; of these 36 were new to the RLF and 189 had previously received grants.
At 31 March 2022, the Fund had a commitment to make five-year recurring grants to 118 beneficiaries. During the year, eight new recurring grants were awarded, 17 were renewed, and nine writers in receipt of these grants died.
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## **Trustees’ Report** _(continued)_
Five-year renewable grants are committed to beneficiaries for a minimum period of five years. Beneficiaries are contacted annually to confirm there is still a need and there has been no material change of circumstances. Consequently, the accounting treatment in the Statement of Financial Activities in accordance with the requirements of the relevant statement of recommended practice for charities means that the full five-year charge is recognised in the statements in the year in which the grant is first awarded. The annual cash expenditure on pension grants for the year was £477,670.
## **RLF Education**
_RLF University Fellowships_
_Thank you so much for the opportunity of this wonderful job again during this difficult year. I’m really not sure what I would have done without it, and am immensely grateful for the time to write, and finish my PhD, at the same time as supporting my children as a single parent. (I was pleased to be able to write to my agent last week to say that my novel should be finished by the autumn!) The job itself has given me valuable experience and enabled me to develop specific skills that will be of use in future work._
## **RLF University Fellow**
The RLF Fellowships, first established in autumn 1999, offer professional writers the opportunity to work for one or two days a week in a university helping students to develop their academic writing skills.
In its 23[rd] year, the Fellowship scheme took on 40 new recruits:
Nathalie Abi-Ezzi, Ian Ayris, Mark Blayney, Michael Bond, Sita Brahmachari, Thomas Bunstead, Anne Caldwell, Elizabeth Cook, Christy Ducker, Ruth Dugdall, Shanta Everington, Juliet Gilkes Romero, Guinevere Glasfurd-Brown, Ed Harris, Rosalind Harvey, Katie Hickman, Andrew Jackson, Sarah Jasmon, Alan Jenkins, Frances Larson, Amber Lee Dodd, Alison MacLeod, Simon Mason, Martine McDonagh. Beth Miller, Lottie Moggach, Barbara Norden, Peter Oswald, Julianne Pachico, Simon Robson, C D Rose, William Ryan, Pamela Scobie, Nikki Sheehan, C J Skuse, Malachy Tallack, Menna van Praag, Vitali Vitaliev, Sarah Ward, Anna C Wilson.
They were joined by seven former Fellows returning to the scheme and 64 others continuing from a previous year. In total, 111 writers worked as RLF Fellows at 81 university/college postings, three of which were new: City University, Kingston University, Suffolk University.
To help Fellows and students work around continuing disruption caused by lockdown restrictions the online conferencing systems introduced in autumn 2020 were maintained.
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## **Trustees’ Report** _(continued)_
## _Consultant Fellows_
While the primary focus of the university Fellowship scheme is working one-to-one with students, writers can play a larger role by bringing a fresh perspective to facilitating writing development with groups of undergraduates and postgraduates and enhancing the professional development of researchers and other staff. The writers on the Consultant Fellows Register have worked for at least two years as RLF university Fellows and then undergo intensive training, during which they design and facilitate group activities for students.
This year Dr Trevor Day retired from his role as Director of the Consultant Fellowship programme; under Trevor’s guidance, the Consultant Fellows have evolved into a successful community of practice who support each other through monthly online meetings. Katie Grant has taken over as co-ordinator of the programme. Consultant Fellows worked extensively with over 35 universities and doctoral training partnerships, providing writing development interventions both online and in person.
## _Bridge_
_I feel much more confident about how to plan out, structure and edit an essay and I think I’ll enjoy writing an essay better the next time I write one._ **Bridge participant**
Bridge expands the principles of the university Fellowship into secondary schools, using a structured series of workshops led by former RLF university Fellows to assist pupils with essay writing.
Bridge Fellows predominantly delivered a streamlined offer of online writing workshops to young people because of the challenging circumstances that schools continued to face. Pupils’ enthusiasm was undimmed, however, saying after the workshops they felt:
_‘More confident and assured…’_
- _‘More comfortable allowing myself to draft and edit, slowly developing quality.’_
_‘I feel less intimidated and more prepared.’_
_‘I have a better idea on how to break up the essay to make it more manageable to write’._
Some Fellows did make it into the classroom and we will aim to prioritise a return to face-to-face delivery. A new cohort of Fellows was trained to expand the areas in which we can offer workshops. We strengthened our partnerships with LEAPS, the British Library and the Creative Education Trust, and are seeking out new strategic partnerships to develop the reach of Bridge.
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## **Trustees’ Report** _(continued)_
## _Social Sector_
_It has opened up a new world where, in my imagination, I can go anywhere._ **Expressive Writing Participant**
Social Sector projects are delivered by writers who have previously worked as university Fellows.
During this period we worked with 35 writers and 40 partner organisations. The work divides into three categories:
- Expressive Writing – in which we run workshops to enable people in community organisations to write about their experience and plans in creative and coherent ways;
- Writing Development – writers work with groups in the workplace to help them write more skilfully in their professional lives;
- An adaptation of the Reading Round model for refugee and asylum-seeker groups, and occasionally in Child and Adolescent Mental Health Units.
We have developed excellent relationships with institutions within the NHS, and we have a writer placed two days a week at University College London Hospital (UCLH) on a similar model to the university Fellowship. Her work has been extraordinarily varied, and provided a springboard for other NHS projects, ranging from helping staff tell their Covid Stories, to Writing Development Skills workshops, to support for individuals writing for publication. UCLH is funding a research project to assess the impact of our work there, and the RLF Fellow has been nominated for the Excellence in Education Award in the 2022 Celebrating Excellence Awards.
Our work with trade unions has also broadened, through links with the TUC, and through wide-reaching webinars. Community groups have ranged from a Trauma Centre in Northern Ireland to work in Approved Premises and groups for marginalised women. We have developed a programme of workshops from Writing for Publication to Responding to Complaints, and an induction and mentoring programme for writers new to our work.
Expressive Writing workshops were run with a variety of groups, including with health care professionals and a group concerned with trauma victims. From participants in an Expressive Writing workshop:
_‘We can all be achievers in our own right.’_
_‘So positive and reassuring – you’ve provided a safe space. You’ve given everyone equal time.’_
_‘The input from other people, others’ experiences, has been amazing to hear. We’re all survivors of something.’_
_‘A remarkably safe space to be while being, at the same time, stimulating and surprisingly fertile. The reading material was inspiring and accessible – I felt totally safe throughout the whole process.’_
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## **Trustees’ Report** _(continued)_
## _Reading Round_
_I have learnt to really listen, and value other perspectives. The experience will be routed into my conscious and unconscious to enhance my further reading. Thank you._
## **Reading Round Participant**
Reading Round is a network of reading groups, each led by a former RLF university Fellow, known as a ‘Lector’, who selects material to read and offers an ‘insider’s’ perspective’ on the texts under discussion.
Covid-19 was a significant feature of Reading Round in this year – all the groups had to be moved online, and writers had to be flexible about returning to face-to-face groups, depending on local circumstances. In order to open up the possibilities for participation, we have for the first time asked writers to recruit new groups for their second year as Lectors, from September 2022, and we ran discussion sessions to help them make the change. The sessions also explored different approaches to choosing texts, and how to deal with changing sensibilities in relation to the values explored and language used in (especially) pre 21[st] Century texts.
Martina Evans, who has provided superb support in running the scheme, not least in developing the Text Bank and working tirelessly on the Forum, will be leaving Reading Round this summer.
_What I found was a group of lovely people, yes, certainly all more literate than I, but inclusive and full of interesting ideas, guided by an enthusiastic, knowledgeable and warm facilitator who led us through a wide range of short stories and poems with lightness of touch and sensitivity._ **Reading Round Participant**
## **WritersMosaic**
_WritersMosaic’s rich and insightful content is wholly indispensable to our understanding of ourselves at this crucial time._
## **Carol Leeming**
WritersMosaic launched in April 2021. A platform for new writing, the initiative exists chiefly as a website focusing on fledgling and established writers of the global majority. WritersMosaic’s board members, all Fellows of the RLF, profile authors whose work spans myriad genres, including fiction, non-fiction, poetry, crime, playwriting and children’s writing. WritersMosaic writers are nurtured through paid work – commissions to write features and to undertake interviews about their writing practices that are also recorded and updated on the site every two weeks.
The platform also brings other authors into the fold through themed guest editions, commissions to write reviews every week, and long form essays.
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## **Trustees’ Report** _(continued)_
In addition, WritersMosaic is raising its and the RLF’s profile through the appearance of its writers at literary festivals, participating in a programme of bespoke WritersMosaic Live events, short films, collaborations with organisations such as 5x15 and the London Review of Books bookshop, and through journals which republish the commissioned work of its writers.
Just a year on, WritersMosaic is finding its audience and establishing its identity. We aim to consolidate the site in the next year.
_As a first-time writer I was challenged by the writing and editing process, and have benefited greatly from the support offered by the team at Writers Mosaic. This experience has allowed me to explore my own voice and how this resonates amongst other writers of shared and complementary practices._ **Yassmin Foster**
## _Grants to other organisations_
Following last year’s grant to the Covid Emergency Fund administered by the Society of Authors, a further grant of £100,000 was made to this same fund in January 2022.
## **Financial Review**
The Fund’s investment portfolio, which is its principal source of income, grew by 15% in the year ending March 31, 2022, to £186.1 million, as financial markets continued to recover from the effects of the Covid-19 pandemic. Investment performance benefited from strong returns in global equity and property markets, with weaker returns in UK equities and losses in fixed income and emerging markets equities.
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Fund value vs inflation
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The portfolio is managed as expendable endowment funds on a total return basis, so that charitable expenditure is supported both by investment income, such as dividends and bond coupons, and by capital gains harvested from the growing portfolio. The Fund has structured its investments with the objective of supporting a target spending rate of 3 ¼% of the average asset value over the three preceding years while at the same time growing the real value of the investments over the long term. The chart above shows that over the last 20 years the Fund’s investments have grown faster than inflation, as measured by the UK CPIH index, although in any given year values may fall.
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## **Trustees’ Report** _(continued)_
During the 2021-22 financial year investment income totalled £4.47 million, compared with £2.83 million in the previous year. Investment management fees, classed in the accounts as “Raising Funds”, totalled £1.26 million, up from £1.16 million in the previous year, reflecting the growth in the value of the fund. As a result, and as anticipated in the current environment of low interest rates and bond yields, net expenditure before gains on investments represented a deficit of £2.02 million.
The Trustees review their investment policy annually to ensure that the target rate of spending remains appropriate, that investment risk remains within their appetite, and that the portfolio is appropriately structured and diversified to deliver the resources needed to meet the Fund’s commitments. They have been advised by Cambridge Associates, a firm of investment consultants, on investment strategy.
At the end of the financial year asset allocation was:
|he end of the fnancial year asset|allocation|
|---|---|
|Equity|54%|
|Fixed income|15%|
|Property|9%|
|Non-marketable alternatives|15%|
|Cash|7%|
|Total|100%|
In the course of the year, one of the Fund’s longest-serving managers, Cedar Rock, closed its fund and returned cash to investors. This cash has been placed with BlackRock, another of our existing managers, to maintain our exposure to equities. The Fund also began a review of its long-term investment arrangements with the aim of ensuring that the portfolio is appropriately structured and administered. The Trustees expect to conclude this review by the end of 2022.
## **Reserves**
The majority of the Fund’s reserves are held as an investment fund to produce income to fund its activities, and are recorded as expendable endowment funds. The trustees have set the Fund’s Investment policy with the aim of supporting anticipated spending on current and future beneficiaries while maintaining the real value of the Investment fund over the long term.
The trustees aim to retain free reserves to ensure that the Fund is able to meet the needs of its beneficiaries, take advantage of strategic opportunities and weather risks such as large fluctuations in the market value of its Investment fund. In general the Fund will therefore seek to retain between 6 and 12 months expenditure in cash or readily liquidated funds.
At 31st March 2022 the net assets of the Fund totalled £195.7 million, comprising £190.28 million of expendable endowment and £5.42 million of unrestricted funds, or free reserves.
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**Trustees’ Report** _(continued)_
## **Risk Management Statement**
Risk is managed by the trustees and senior staff. A Risk Register indicating likelihood, impact and mitigating actions is reviewed regularly by the General Committee and separate sub-registers for particular areas of activity reviewed by relevant sub-committees.
## **Remuneration**
Remuneration is considered annually by the Finance and Investment Subcommittee. It takes advice from the Chief Executive, who provides current figures and relevant information for all key management personnel. The subcommittee determines pension arrangements and other benefits, and ensures that contractual terms on termination are fair to the individual and the charity, and that poor performance is not rewarded. It recommends its decisions to the General Committee for approval.
In determining the RLF’s remuneration policy, the Sub-committee takes into account that as an organisation it has few employees; it wishes therefore to recognise the broader than normal range of skills and competencies required in many roles.
The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other charities and/or Higher Education roles, ensuring the RLF remains sensitive to the broader issues, eg pay and employment conditions elsewhere.
## **Future Plans**
Building on the strategy and identity work done with RADA Business in November 2021, a communications audit has been undertaken and the RLF is now in the process of appointing our first-ever Head of Marketing and Communications, who will lead on the development of a new visual identity for the Fund and the creation and implementation of comprehensive communications strategy.
Subject to Privy Council approval, the revised Royal Charter and Byelaws will permit a greater delegation of authority by the General Committee to its sub-committees, which will enable a more strategic scrutiny and support of the RLF’s activity by trustees.
A review is under way of grant-giving activity, to ensure that the RLF’s aid is available to the widest range of professional writers and that the process is accessible, transparent and equitable. It is expected that a clarification of the various strands of RLF financial support will result from this review. A research project has been commissioned to understand the needs of writers in the 2020s.
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## **Trustees’ Report** _(continued)_
In Education, the university Fellowship scheme will be expanded to take account of an increase in quality applicants in particular regions. 20 additional Fellows will be trained to deliver Bridge from October 2022 to expand the scope of the programme and address the pressing needs of school pupils. The training programme for Social Sector writers is being developed and a portfolio of long-term partner organisations identified to make the programme fully sustainable.
Reading Round will recruit 20 new writers to begin work in September 2023, and serve as Lectors for one year only. Half of these writers will previously have been university Fellows, others will be recruited from WritersMosaic or alternative routes. We hope thereby to recruit a more diverse cohort of Lectors and to enable more writers access to RLF post-Fellowship work. We will adapt our existing induction programme and mentoring scheme to fit this new cohort.
WritersMosaic plans to expand its collaborations with organisations such as the British Library and festivals such as Hay, taking on a role in bespoke programming. WritersMosaic also aims to reach younger audiences in collaborations with sixth forms, and to devise other formats for its website, strengthening its appeal.
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**Trustees’ Report** _(continued)_
## **Auditor**
The trustees who held office at the date of approval of this trustees’ annual report confirm that, so far as they are each aware, there is no relevant audit information of which the charity’s Auditor is unaware. Each trustee has been made aware of the relevant audit information and it has been established that the Charity’s Auditor is aware of that information.
By order of the board **George Graham** Treasurer 8th December 2022
3 Johnson’s Court off Fleet Street London EC4A 3EA
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## **Statement of trustees’ responsibilities in respect of the trustees’ annual report and financial statements**
## **Statement of Trustees’ Responsibilities**
The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards.
The law applicable to charities in England and Wales 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 the incoming resources and application of resources of the charity for that period.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that 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 and the Charity (Accounts and Reports) Regulations 2008. 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.
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**Independent auditor’s report to the trustees of The Royal Literary Fund**
## **Opinion**
We have audited the financial statements of The Royal Literary Fund for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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:
- give a true and fair view of the state of the charity’s affairs as at 31 March 2022, and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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.
## **Conclusions relating to 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.
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## **Independent auditor’s report to the trustees of The Royal Literary Fund** _(continued)_
## **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.
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.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
- the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or
- the charity has not kept adequate accounting records; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we required for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the 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.
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**Independent auditor’s report to the trustees of The Royal Literary Fund** _(continued)_
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
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 in 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 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.
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.
Our approach was as follows:
- We obtained an understanding of the legal and regulatory requirements applicable to the charity and considered that the most significant are the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.
- We obtained an understanding of how the charity complies with these requirements by discussions with management.
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management.
- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
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**Independent auditor’s report to the trustees of The Royal Literary Fund** _(continued)_
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and obtaining additional corroborative evidence as required.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material 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 internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charity’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and 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 exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, 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 presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
18
**Independent auditor’s report to the trustees of The Royal Literary Fund** _(continued)_
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities 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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity and charity’s trustees as a body, for our audit work, for this report, or for the opinion we have formed.
**Moore Kingston Smith LLP** _Statutory auditor_
9 Appold Street London EC2A 2AP
Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.
Date:
19
## **The Royal Literary Fund Statement of financial activities**
_for the year ended 31 March 2022_
|
**Note**
**Income**
_Income from:_
Donations and legacies
_3_
Royalties
_4_
Investments
_2_
Total Income
**Expenditure**
_Expenditure on_
Raising Funds
_7_
Charitable activities
**_8_**
Total Expenditure
**Net Expenditure before gains**
**on investments**
**Exchange gains/(losses)**
**Net gains on investments**
**Net (expenditure)/income**
_5_
**Transfers between funds**
**Net movement in funds**
Fund balances brought forward
Fund balances carried forward|**Unrestricted**
**funds**
**£**
14,605
230,157
4,469,345
4,714,107
–
(5,394,708)
(5,394,708
)
(680,601)
–
–
(680,601)
1,000,000
319,399
5,101,301
5,420,700|**Restricted**
**funds**
**£**
–
–
2,486
2,486
–
(85,342)
(85,342)
(82,856)
–
–
(82,856)
–
(82,856)
82,856
–
|**Expendable**
**Endowment**
**funds**
**£**
–
–
–
–
(1,257,628)
–
(1,257,628)
(1,257,628)
2,155,856
13,852,105
14,750,333
(1,000,000)
13,750,333
176,528,753
190,279,086
|**2022**
**Total**
**funds**
**£**
14,605
230,157
4,471,831
4,716,593
(1,257,628)
(5,480,050)|
|---|---|---|---|---|
|||||(6,737,678)|
|||||(2,021,085)
2,155,856
13,852,105
13,986,876
–
13,986,876
181,712,910
195,699,786|
The incoming resources and resulting net movement in funds arise from continuing operations. The charity has no recognised gains or losses other than the net movement in funds in the year.
20
## **The Royal Literary Fund Statement of financial activities**
_for the year ended 31 March 2021_
|
**Note**
**Income**
_Income from:_
Donations and legacies
_3_
Royalties
_4_
Investments
_2_
Total Income
**Expenditure**
_Expenditure on_
Raising Funds
_7_
Charitable activities
_8_
Total Expenditure
**Net Expenditure before gains on**
**investments**
**Exchange losses**
**Net gains on investments**
**Net (expenditure)/income**
_5_
**Transfers between funds**
**Net movement in funds**
Fund balances brought forward
Fund balances carried forward|**Unrestricted**
**funds**
**£**
7,880
218,304
2,821,774
3,047,958
–
(5,457,501)
(5,457,501
)
(2,409,543)
–
–
(2,409,543
)
2,500,000
90,457
5,010,844
5,101,301|**Restricted**
**funds**
**£**
–
–
3,260
3,260
–
(29,100)
(29,100)
(25,840)
–
–
(25,840
)
–
(25,840)
108,696
82,856
|**Expendable**
**Endowment**
**funds**
**£**
–
–
–
–
(1,161,631)
–
(1,161,631)
(1,161,631)
(3,410,398)
31,764,725
27,192,696
(2,500,000)
24,692,696
151,836,057
176,528,753
|**2021**
**Total**
**funds**
**£**
7,880
218,304
2,825,034|
|---|---|---|---|---|
|||||3,051,218|
|||||(1,161,631)
(5,486,601)|
|||||(6,648,232)|
|||||(3,597,014)
(3,410,398)
31,764,725
24,757,313
–
24,757,313
156,955,597|
|||||181,712,910|
The incoming resources and resulting net movement in funds arise from continuing operations. The charity has no recognised gains or losses other than the net movement in funds in the year.
21
## **The Royal Literary Fund Balance sheet**
_at 31 March 2022_
|**Note**
**Fixed Assets**
Tangible fxed assets
_10_
Investments
_12_
**Current Assets**
Debtors
_13_
Cash at bank and in hand
**Creditors: Amounts falling**
**due within one year**
_14_
**Net Current Assets**
**Total Assets less Current Liabilities**
**Creditors: Amounts falling due**
**in more than one year**
_15_
**Net Assets**
_19_
**Funds**
Restricted funds
Unrestricted funds
Expendable endowment funds
_19_|**2022**
**£**
777,875
10,276,299
11,054,174
(902,286)
|**2022**
**£**
409,910
186,111,860
186,521,770
10,151,888
196,673,658
(973,872)
195,699,786
–
5,420,700
190,279,086
195,699,786|**2021**
**£**
762,532
20,475,002
21,237,534
(988,715)
|**2021**
**£**
371,423
162,146,444|
|---|---|---|---|---|
|||||162,517,867|
|||||20,248,819
182,766,686
(1,053,776)|
|||||181,712,910|
|||||82,856
5,101,301
176,528,753
181,712,910|
The financial statements were approved by the General Committee on the 8th December 2022 and signed on its behalf by:
**George Graham** Treasurer
**Edward Kemp** Chief Executive Officer
22
## **The Royal Literary Fund Cash flow statement**
_for the year ended 31 March 2022_
|**Note**
**Net cash used in operating**
**activities**
**Cash fows from investing**
**activities**
Capital expenditure and
fnancial investment
Purchase of tangible fxed assets
Purchase of fxed asset investments
Proceeds of sale from fxed assets
Proceeds from sale of investments
**Net cash provided by investing**
**activities**
Change in cash and cash
_20_
equivalents in the reporting period
Change in cash and cash equivalents
at the beginning of the year
Net cash at the start of the year
_20_
Net cash at the end of the year
_20_|**2022**
**£**
(97,327)
(52,519,208)
18,593
43,195,465
|**2022**
**£**
(639,321)
(9,402,477)
(10,041,798)
(10,041,798)
20,593,488
10,551,690|**2021**
**£**
(4,463)
(33,664,003)
17,004
34,583,661
|**2021**
**£**
(3,017,367)
932,199
(2,085,168)
(2,085,168)
22,678,656
20,593,488|
|---|---|---|---|---|
## **Reconciliation of changes in net expenses before other recognised gains and losses to net cash flow**
|Net expenses before other
recognised gains and losses
Depreciation
(Gain) on disposal of fxed assets
Investment management fees
Foreign exchange movements
Decrease/(Increase)/in debtors
(Decrease) in creditors
Net cash outfow from operating activities|(2,021,085)
42,312
(2,064)
1,241,336
133,057
133,456
(166,333)
(639,321
)
|(3,597,014)
29,858
(46)
1,076,813
(356,948)
(106,874)
(63,156)
(3,017,367
)|
|---|---|---|
23
**The Royal Literary Fund Notes to the Financial Statements**
_for the year ended 31 March 2022_
## **1 Accounting Policies**
## _**Basis of accounting**_
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 (FRS102) and the Companies Act 2006. The Royal Literary Fund meets the definition of a public benefit entity under FRS 102 and is a registered charity. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
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. In particular the trustees have considered the charity’s forecasts and projections and have taken account of pressures on donation and investment income. After making enquiries and considering the impact of Covid 19, the trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the forseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statement are rounded to the nearest pound.
_**Incoming resources**_
All income is included when the charity has entitlement to the income, there is probability of receipt and the amount can be measured. Donations are recognised on a receipts basis unless the donor specifies that the donation relates to a future period or that certain preconditions must be fulfilled before use. Interest income is included on a receivable basis.
## _**Expenditure**_
Expenditure is classified under the principal categories of charitable and other expenditure rather than the type of expense, in order to provide more useful information to users of the financial statements. Resources expended are included in the Statement of Financial Actitvities (SOFA) on an accruals basis..
Charitable activities comprise direct expenditure including direct staff costs attributable to the activity. Support costs, including governance costs, have been allocated to activities based on the average staff time spent.
24
**The Royal Literary Fund Notes to the Financial Statements**
_for the year ended 31 March 2022 (continued)_
## **1**
**Accounting Policies** _(continued)_
## _**Depreciation**_
Depreciation is provided to write off the cost less the estimated residual value of tangible fixed assets, except freehold land, by equal instalments over their estimated useful economic lives as follows:
Freehold buildings 2% of cost per annum Fixtures and fittings 25% of written down value per annum Office equipment 25% of written down value per annum Motor vehicles 25% of written down value per annum
Rentals payable under operating leases are charged to the Statement of Financial Activities as incurred over the term of the lease.
## _**Three and five year grants**_
Liabilities for three and five year grants are recognised in the balance sheet when the Fund has a legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. One off grants are recognised when they are awarded. Instalment three and five year grants are awarded over a three and five year period respectively. Annual payments are made based on the initial award on application. Five year grants are reviewed for renewal after the five year period.
## _**Operating leases**_
Operating lease rentals are charged to the income and expenditure account on a straight line basis over the period of the lease.
_**Post-retirement benefits**_
The amount charged against profits represents the contributions payable to employees’ private pension schemes in respect of the accounting period.
## _**Funds**_
## _Unrestricted funds_
These funds are used to satisfy the provision of the charter of The Royal Literary Fund and are used at the discretion of the Trustees.
Income for the fund is generated through donations, but is mainly derived from the expendable endowment fund.
## _Designated funds_
The income funds of the charity include designated funds, which have been set aside out of general unrestricted funds. These funds are used for the same purposes as general funds.
## _Restricted funds_
The JB Priestley fund is the only restricted fund. From the fund, both capital and income, allotments of grants are made to writers of promise, as specified by the donor. Awards are made on an occasional basis, when a suitable candidate applies to the Fund for a grant.
25
**The Royal Literary Fund Notes to the Financial Statements**
_for the year ended 31 March 2022 (continued)_
## **1 Accounting Policies** _(continued)_
## _Expendable endowment funds_
From funds obtained from the sale of its share of the commercial rights to Winnie the Pooh received from AA Milne Estate, the Fund invested money in an investment portfolio. It is from this portfolio that income is generated every year to fund the majority of the grant making programme.
The Trustees have the power to release the expendable endowment funds to the Fund’s unrestricted income funds, which may be spent on charitable activities.
## _**Investments**_
Investments are shown at market value in accordance with Statement of Recommended Practice “Accounting and Reporting by Charities”.
Realised gains or losses on the sale of investments represent sale proceeds, less market value brought forward and investment management fees and commissions.
Unrealised gains or losses represent the movement between the brought forward and carried forward market value of the investments in the period.
_**Financial instruments**_
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company’s balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See notes 13,14 and 15 for the debtor and creditor notes.
## _**Judgements and key sources of estimation uncertainty**_
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
26
**The Royal Literary Fund Notes to the Financial Statements**
**2**
_for the year ended 31 March 2022 (continued)_
## **1**
## **Accounting Policies** _(continued)_
The most significant estimates and assumptions which affect the carrying amount of assets and liabilities in the accounts relate to:
Useful Economic Lives – The annual depreciation charge for fixed assets is sensitive to change in the estimated useful economic lives and residual value of the assets. These are reassessed annually and amended where necessary to reflect current circumstances.
## _**Cash and liquid resources**_
Cash, for the purpose of the cash flow statement, comprises cash in hand and deposits repayable on demand, less overdrafts payable on demand. Liquid resources are included within fixed asset investments which are disposable without curtailing or disrupting the business and are either readily convertible into known amounts of cash at or close to their carrying values or traded in an active market. Liquid resources comprise term deposits of less than one year.
## _**Foreign currencies**_
Transactions in foreign currencies are recognised at the rate of exchange at the date of the transaction. Monetary assets and liabilities are translated into sterling at the exchange rate on the balance sheet date. Exchange differences are recognised through the statement of financial activities. The charity does not own any non-monetary assets abroad.
|**Investment Income**
Income from fxed interest securities
Income from managed or unitised funds
Interest on cash deposits held by investment managers
Interest on other cash deposits|**2022**
**2021**
**£**
**£**
3,215,720
1,070,1096
1,254,524
1,750,116
447
3
1,140
4,806
4,471,831
2,825,034|**2022**
**2021**
**£**
**£**
3,215,720
1,070,1096
1,254,524
1,750,116
447
3
1,140
4,806
4,471,831
2,825,034|
|---|---|---|
|||2,825,034|
All investment income is held as unrestricted income except for £2,486 (2021: £3,260) which has been classified as restricted income relating to income from managed or unitised funds.
27
## **The Royal Literary Fund Notes to the Financial Statements**
_for the year ended 31 March 2022 (continued)_
|**3**
**4**
**Donations & legacies**
_Legacies_
PMC Whinnie
A Hill
_Donations_
The Kington Oliphant of Gask Trust
Other donations under £500
Total
**Royalties**
_Royalties_
E Marsh
Rupert Brooke
Patrick Hamilton
W Somerset Maugham
GK Chesterton
LE Collis
Pooh Properties Trust
Arthur Ransome
Eden Philpotts
Henry Reed
Hugh Whitmore
Colin Maclnnes
Anon
Lawson
NFSimpson
M Robson
P Clough
A Wilson
T Faulkner
A Brodie
M Hocking|**2022**
**£**
–
12,975
12,975
1,065
565
1,630
14,605
**2022**
**£**
206
171
2,092
51,357
8,236
–
135,000
27,664
–
180
–
1,243
2,069
135
86
27
1,143
253
228
67
–
230,157|**2021**
**£**
1,000
–|
|---|---|---|
|||1,000|
|||1,104
776|
|||1,880|
||||
|||2,880|
|||**2021**
**£**
92
16
30,267
44,695
5,845
5,000
93,750
37,954
1,139
111
47
1,154
1,806
77
119
58
900
–
–
–
274|
|||223,304|
28
## **The Royal Literary Fund Notes to the Financial Statements**
_for the year ended 31 March 2022 (continued)_
## **5**
|**Net incoming resources is stated after charging**|**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Depreciation|42,312|29,858|
|Payments under operating leases|1,688|1,688|
|Amounts paid to auditor|||
|Audit fee – current year|17,000|16,500|
|Audit fee – prior year under/(over) accrual|480|(300)|
**6**
## **Taxation**
The Royal Literary Fund, as a registered charity, is exempt from taxation on its income and gains falling within Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable objectives. No tax charge has arisen in the year.
**7**
|**Raising Funds**
Investment management fees|**2022**
**£**
1,257,628
1,257,628|**2021**
**£**
1,161,631|
|---|---|---|
|||1,161,631|
29
## **The Royal Literary Fund Notes to the Financial Statements**
_for the year ended 31 March 2022 (continued)_
|**8**
**Charitable Activities**
**2022**
**Grant**
**Education**
**Making**
**£**
**£**
**Direct costs**
Fellowships
2,949,333
–
Staff costs
307,799
118,310
Temporary staff
–
–
Advertising
–
25,039
Outright grants
–
614,707
Three Year Instalment grants
–
483,192
Five Year Grants – total
commitments payable
–
436,388
Offce costs
(4,231)
3,714
The Society of Authors
–
100,000
**Support costs**
_Governance costs_
Audit fees
8,740
8,740
Professional fees
36,318
36,318
_Other support costs_
Staff costs
53,083
57,004
Recruitment & temporary
staff
9,907
9,907
Offce expenses
49,223
49,223
Postage, printing , stationery,
Telephone & IT
12,152
12,152
Website
30,360
30,360
Depreciation
21,156
21,156
Total charitable activity
costs by sector
3,473,840
2,006,210|2021
Grant
Education
Making
£
£
2,916,727
–
273,241
125,936
–
7,389
–
82,062
–
555,251
–
314,500
–
737,571
7,671
1,996
–
200,000
8,100
8,100
18,880
18,880
–
23,919
6,000
6,000
32,315
32,315
9,945
9,945
30,000
30,000
14,929
14,929
3,317,808
2,168,793|2021
Grant
Education
Making
£
£
2,916,727
–
273,241
125,936
–
7,389
–
82,062
–
555,251
–
314,500
–
737,571
7,671
1,996
–
200,000
8,100
8,100
18,880
18,880
–
23,919
6,000
6,000
32,315
32,315
9,945
9,945
30,000
30,000
14,929
14,929
3,317,808
2,168,793|
|---|---|---|
|||2,168,793|
All grants given in the year were to provide support to those classified as having literary merit by the trustees.
## _**Grants Paid to Individuals**_
The aggregate amount of three and five year grants awarded to individuals during the year was £1,614,097 (2021- £1,509,506). The total number of grants awarded to other charities was 1 (2021 – 1). At the year end £1,764,768 (2021 – £1,897,988) of three and five year grants were committed and a liability has been recognised in the accounts to reflect this. (See notes 14 and 15).
The total number of three year grants awarded and paid to individuals in the year was 112 (2021 – 229).
30
## **The Royal Literary Fund Notes to the Financial Statements**
_for the year ended 31 March 2022 (continued)_
## **9**
## **Employees**
The average number of employees during the year was 7.25 (2021: 5)
|Education
Grant Making
Staff costs:
Wages, salaries and benefts
Social security costs
Other pension costs (see note 17)|**2022**
5.00
2.25
7.25
**2022**
**£**
430,919
46,055
59,222
536,196|**2021**
3
2|
|---|---|---|
|||5|
|||**2021**
**£**
337,411
39,102
46,582|
|||423,095|
The Charity considers its key management personnel comprise the Chief Executive Officer (two employees held this office during the year), the Director of Education and the Director of Digital. The total management benefits including employer pension contributions of the key management personnel were £359,523 (2021: £353,726).
No employees (2021:1) earned between £90,000 and £100,000 per annum. Total employer pension contributions for this individual was £0 (2021: £13,890).
2 employees (2021: 2) earned between £80,000 and £90,000 per annum. Total employer pension contributions for these individuals were £25,043 (2021: £24,995).
1 employee (2021: 0) earned between £70,000 and £80,000 per annum. Total employer pension contributions for this individual was £11,753 (2021: £0).
1 employee (2021: 0) earned between £60,000 and £70,000 per annum. Total employer pension contributions for these individuals were £10,401 (2021: £0).
Reimbursement of out of pocket expenses totalling £1,088 were made to 3 trustees in 2022. No reimbursements were made in 2021. These expenses related to travel costs incurred in relation to work carried out for the charity.
31
**The Royal Literary Fund Notes to the Financial Statements**
**11**
_for the year ended 31 March 2022 (continued)_
|**10**
**Tangible Fixed Assets**
Freehold
Buildings
£
**Cost**
At 1 April 2021
613,020
Additions
–
Disposals
–
At 31 March 2022
613,020
**Depreciation**
At 1 April 2021
281,004
Charge for the year
12,260
Disposals
–
At 31 March 2022
293,264
**Net Book Value**
At 31 March 2022
319,756
At 1 April 2021
332,016|Fixtures
and
Offce
Fittings Equipment
£
£
77,622
39,495
–
6,805
–
–
77,622
46,300
66,057
28,181
2,892
4,530
–
–
68,949
32,711
8,673
13,589
11,565
11,314|Motor
Vehicles
£
55,485
90,522
(55,485)
90,522
38,957
22,630
(38,957)
22,630
67,892
16,528|Total
£
785,622
97,327
(55,485)
827,464
414,199
42,312
(38,957)
417,554
409,910
371,423|
|---|---|---|---|
## **Intangible Fixed Assets**
The Fund owns the copyright to the works of several authors. The Committee does not consider it practical to place a value on these copyrights, so they are not shown in the balance sheet.
The archives of the Fund from 1790 up to 1939 have been placed at the British Library on indefinite loan. The archives consist of the records of cases, minutes, annual reports and matters of administration and are of considerable interest to scholars and researchers.
32
## **The Royal Literary Fund Notes to the Financial Statements**
_for the year ended 31 March 2022 (continued)_
|**12**
**Fixed Asset Investments**
Fixed interest securities
Managed or unitised funds
Cash deposits held by investment managers
_Quoted investments_
Market value as at 1 April 2021
Additions
Disposals
Net gains
Investment management fees
Exchange gain
Market value as at 31 March 2022
Historical cost as at 31 March 2022
**Geographical Analysis**
United Kingdom
Overseas|**2022**
**£**
30,122,855
155,862,413
185,985,268
126,592
186,111,860
162,027,958
52,519,208
(43,195,465)
13,852,104
(1,241,336)
2,022,799
185,985,268
143,080,758
117,895,932
68,364,727
186,260,659
|**2021**
**£**
29,577,972
132,449,986
162,027,958
118,486
162,146,444
135,313,154
33,664,003
(34,583,661)
31,764,725
(1,076,813)
(3,053,450)
162,027,958
102,700,206
102,586,215
59,560,229
162,146,444|
|---|---|---|
The following investments represent more than 5% of the value of the portfolio. Their year end market values have also been stated for clarity. Blackrock Midcap UK Equity, £15,826,116 (2021: £16,075,043); Blackrock MSCI, £54,627,734 (2021: £13,794,025); Stewart Investors Global Emerging Markets, £17,090,828 (2021: £17,708,849); Loomis Sayles Global Opp Bond Fund, £20,768,272 (2021: £19,694,428); Overstone Global Equity Fund, £19,373,434 (2021: £17,864,371); Cedar Rock Capital Fund, £0 (2021: £32,998,567); Charities Property Fund, £16,428,152 (2021: £8,754,947) and Pantheon RLF 2014 Fund £11,833,767 (2021: £9,145,537).
33
**16**
## **The Royal Literary Fund Notes to the Financial Statements**
_for the year ended 31 March 2022 (continued)_
|**13**
**Debtors**
Employees’ expense foat
Prepayments and accrued income
All debtors fall due within one year.
**14**
**Creditors: amounts falling due within one year**
Accrued expenditure
Tax and social security
Other creditors
Accrued grants and pension commitments
**15**
**Creditors: amounts falling due in more than one year**
Accrued three and fve year grant commitments|**2022**
**£**
6,000
771,875
777,875
**2022**
**£**
67,815
43,011
564
790,896
902,286
**2022**
**£**
973,872|**2021**
**£**
6,000
756,532|
|---|---|---|
|||762,532|
|||**2021**
**£**
53,281
16,130
2
919,302|
|||988,715|
|||**2021**
**£**
1,053,776|
The trustees have accrued for three and five year grants awarded in the year, which are payable over a three and five year period, respectively. Although all payments are subject to an annual review, the Fund accepts a ‘no changes in circumstances’ return. Since the assessment of the beneficiary’s financial well being is outside the Fund’s control, a full accrual for this commitment has been made this year.
## **Commitments**
Annual commitments under other non-cancellable operating leases are as follows:
|Minimum lease payments due in:
– less than one year
**Pension Scheme**|**2022**
**£**
–|**2021**
**£**
–|
|---|---|---|
||||
The company operates a defined contribution pension scheme. Contributions of £59,222 (2021: £46,582) were charged to the profit and loss account as they became payable in accordance with the rules of the scheme.Contributions of £10,587 (2021: nil) remained outstanding at the year end.
**17**
34
**The Royal Literary Fund Notes to the Financial Statements**
_for the year ended 31 March 2022 (continued)_
## **18 Analysis of Movements on the Funds**
|**Analysis of Movements on**|**the Funds**||||
|---|---|---|---|---|
|Opening funds
Income
Expenditure
Fund transfers
Other net recognised gains
Closing value of funds
Opening funds
Income
Expenditure
Fund transfers
Other net recognised gains
Closing value of funds|**Unrestricted**
**Funds**|
**Restricted**
**Funds**|**Expendable**
**Endowment**
**Funds**|**2022**
**Total**
**£**
181,712,910
4,716,593
(6,737,678)
179,691,825
–
16,007,961
195,699,786
**2021**
**Total**
**£**
156,955,597
3,051,218
(6,648,232)
153,358,583
–
28,354,327
181,712,910|
||**General**
**£**
5,101,301
4,714,107
(5,394,708)
4,420,700
1,000,000
–
5,420,700
**Unrestricted**
**Funds**|**JB**
**Priestley**
**Fund**
**£**
82,856
2,486
(85,342)
–
–
–
–
**Restricted**
**Funds**|**General**
**£**
176,528,753
–
(1,257,628)
175,271,125
(1,000,000)
16,007,961
190,279,086
**Expendable**
**Endowment**
**Funds**||
||**General**
**£**
5,010,844
3,047,958
(5,457,501)
2,601,301
2,500,000
–
5,101,301|**JB**
**Priestley**
**Fund**
**£**
108,696
3,260
(29,100)
82,856
–
–
82,856
|**General**
**£**
151,836,057
–
(1,161,631)
150,674,426
(2,500,000)
28,354,327
176,528,753
||
35
**The Royal Literary Fund Notes to the Financial Statements**
_for the year ended 31 March 2022 (continued)_
## **18 Analysis of Movements on the Funds** _(continued)_
The general fund and designated funds are unrestricted and are used to satisfy the provision of the charter of The Royal Literary Fund. There are sufficient funds to enable this to occur.
The JB Priestley Fund is restricted to be spent on young writers of promise. All funds under this bequest have now been allocated.
The designated funds above are in relation to substantial legacies received from the above named individuals which can be spent on general use to help writers. They have been designated as a mark of gratitude for the substantial sums of money these individuals have contributed.
The transfer from the expendable endowment to general unrestricted has been made in order that free reserves are maintained at a level of between 6 and 12 months expenditure as per the reserves policy.
## **19 Analysis of Net Assets between Funds**
|Fixed assets
Investments
Net current assets
Creditors due in more
than one year
Closing value of funds|**Unrestricted**
**Funds**|
**Restricted**
**Funds**|**Expendable**
**Endowment**
**Funds**|**2022**
**Total**
**£**
409,910
186,111,860
10,151,888
(973,872)
195,699,786|
|---|---|---|---|---|
||**General**
**£**
409,910
–
5,984,662
(973,872)
5,420,700|**JB**
**Priestley**
**Fund**
**£**
–
–
–
–
–
|**General**
**£**
–
186,111,860
4,167,226
–
190,279,086
||
Within expendable endowment funds is included £155,748,303 (2021:£135,835,767) of material investments, as disclosed in note 12.
36
**The Royal Literary Fund Notes to the Financial Statements**
_for the year ended 31 March 2022 (continued)_
## **19 Analysis of Net Assets between Funds** _(continued)_
|Fixed assets
Investments
Net current assets
Creditors due in more than
one year
Closing value of funds|**Unrestricted**
**Funds**|
**Restricted**
**Funds**|**Expendable**
**Endowment**
**Funds**|**2021**
**Total**
**£**
371,423
162,146,444
20,248,819
(1,053,776)|
|---|---|---|---|---|
||**General**
**£**
371,423
–
5,783,654
(1,053,776)
5,101,301|**JB**
**Priestley**
**Fund**
**£**
–
108,696
(25,840)
–
82,856
|**General**
**£**
–
162,037,748
14,491,005
–
176,528,753
||
|||||181,712,910|
Within expendable endowment funds is included £135,835,767 of material investments, as disclosed in note 12.
**20**
## **Net Cash**
|**Net Cash**||||
|---|---|---|---|
|
Cash in hand, at bank
Cash deposits held by Investment
Managers
Total
|**Cash b/fwd**
**£**
20,475,002
118,486
20,593,488|**Cash Cash c/fwd**
**£**
**£**
(10,198,703)
10,276,299
8,106
126,592
(10,190,597
)
10,402,891||
||||10,402,891|
**21 22**
## **Capital commitments**
There were no capital commitments at 31 March 2022 (2021: Nil).
## **Related party transactions**
There were no related party transactions in the year. (2021: Nil)
37
## **Administrative Information**
**The Royal Literary Fund** Registered Charity 219952
**Patron** Her Late Majesty Queen Elizabeth II
**President and Chair** Sir Ian Blatchford
**General Committee (as at 31 March 2022)** Nelle Andrew (joined January 2022) Terence Blacker Dan Franklin – _Registrar_ Brenda Gardner George Graham – _Treasurer_ (elected November 2021) Hilary Hale – _Deputy President & Registrar_ Bruce Hunter (retired November 2021) Paula Johnson (retired November 2021) Mark Lawson Mark Le Fanu OBE – _Treasurer_ Colin Ludlow (from July 2021) Colin Luke – _Treasurer_ Dreda Say Mitchell MBE Judith Murray (joined January 2022) Michael Symmons Roberts Fiona Sampson MBE Joanna Trollope CBE (retired November 2021) Marianne Velmans Ellah P Wakatama OBE
_Sub-committees_
## **Finance and Investment**
Ian Blatchford, George Graham, Bruce Hunter (retired November 2021), Mark Le Fanu, Colin Luke
## **Nominations**
Ian Blatchford, Hilary Hale, Mark Lawson, Mark Le Fanu, Dreda Say Mitchell, Fiona Sampson
## **Education**
Paula Johnson (Chair until November 2021), Colin Luke (Chair from November 2021), Dreda Say Mitchell, Michael Symmons Roberts, Ellah P Wakatama
38
## **Administrative Information** _(continued)_
_Auditor_ Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP
_Accountants_ Taxing Matters 54 Park Lane Reigate RH2 8JX
_Solicitors_ Farrer & Co 66 Lincoln’s Inns Fields London WC2A 3LH
_Bankers_ Coutts & Co 440 Strand London WC2R 0QS
## **Staff**
Steve Cook _Director of Education_
Colin Grant _Director, WritersMosaic_
Vanessa Holt _Grants Assistant_
Edward Kemp _Chief Executive_
Katharine McMahon _Head of Outreach_
Justine Palmer _Grants Manager (Interim)_
David Swinburne _Director of Digital_
39
## **Some applicants helped during the year**
## **Amongst those awarded grants during the year:**
- An award-winning writer of non-fiction had experienced a dramatic drop in earnings after an international book tour was cancelled due to the Covid-19 pandemic.
- A radio dramatist had seen a reduction in commissioned work following the pandemic. As the principal family earner, raising two young children, the writer approached the RLF for support whilst searching for new work opportunities. The trustees made a grant and helped clear credit card debt.
- A nature writer had his writing interrupted during the pandemic as nurseries closed and he became the main carer for two very young children. As the restrictions eased the family’s financial situation remained impacted.
- An award-winning playwright had accumulated debt as she juggled work commitments and caring for her sick and dying father during the pandemic.
- A biographer was made redundant from his part-time job at the beginning of the pandemic and his supporting writing work had also suffered. He was receiving Universal Credit but was struggling to pay bills as the cost of living increased.
- An award-winning travel writer with a young family had his work interrupted during the pandemic as the world entered lockdown. He was behind with writing his next book and in need of financial help to support his family.
- A novelist approached the RLF after a storm had caused substantial damage to the roof of his house. The RLF made a grant to cover the cost of the repair work.
- A writer of Young Adult fiction had lost earnings following a series of surgeries and hospital stays for a chronic condition.
- The widow of a novelist and playwright applied to the RLF as she was struggling to cover bills following the sudden death of her husband.
- A novelist’s financial circumstances had deteriorated following her husband’s ill health and the delay in publication of her latest book. The couple had run up debt which they were struggling to repay. The committee awarded a grant to help clear the debts.
40
## **Extracts from thank you letters**
_I can sleep at night because I’m not worrying about how we will pay the bills. Your decision to pay off my credit cards was beyond any hope or expectation I might have had when I applied to the RLF. You have given me and my family a clean financial slate and we’re very grateful. Thank you for the amazing work that you do and for your considerable support. It feels like a miracle that you exist._
_I wanted to again extend my deepest thanks for making the process so transparent and accessible, and to the entire committee for this transformative support and championing my work in such a huge way. The grant has been significant in enabling me to continue creating and has already changed the trajectory of what has been a deeply difficult year._
_I wish to thank you for the incredible financial support you’ve given me over three difficult years. It has made all the difference, not just financially, though that was crucial, but also emotionally, knowing that you are there and care about the welfare of authors in difficulty, about my welfare… The Royal Literary Fund is an extraordinary organisation. Thank you for being there for writers, for your kindness and generosity._
41
## **Members**
_as at 31 March 2022_
Sir Alan Ayckbourn
David Bacon Antonia Barber Janet Barber Nicholas Baring* M Bernstein Philippa Blake-Roberts Sir Hugo Brunner KCVO Michael Bunting
Fiona Clark* Andrew Crawshaw
Peter Daniels Dame Margaret Drabble*
Miss EJ Fenwick Michael Frayn Ingrid Freebairn
Charles Goodman Mrs Susan Goodman EA Greey I Gundry
Celia Haddon Duff Hart-Davis Lady Selina Hastings Sir Max Hastings Sir Michael Holroyd* Bruce Hunter
Sir Kazuo Ishiguro
Mrs Catherine M Lambert David Lodge CBE Mark Le Fanu OBE
Rupert Murdoch Stephen Maitland-Lewis Michelle Magorian
P O’Leary Derek Parker* Betty Parvin Kate Pool*
Mrs B Quartermaine Michael Ridpath
Mike Shaw Katherine Scholfield Hilary Spurling*
Andrew Taylor Judy Taylor MBE Claire Tomalin* Peter Troughton CBE
DFJ van der Vat Lady Jane Willoughby de Eresby Philip Ziegler CVO*
_*Honorary Member_
42