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2023-03-31-accounts

Company number: 1056004 Charity number: 264221

LISTENING BOOKS

(A company limited by guarantee) FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

LISTENING BOOKS

(A company limited by guarantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Contents Page
Report of the Council of Management 1 - 6
Independent Auditors’ Report 7 - 9
Statement of Financial Activities 10
Balance Sheet 11
Cash Flow Statement 12
Notes to the Financial Statements 13 - 21

LISTENING BOOKS REPORT OF THE COUNCIL OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2023

The Council of Management, the members of which are directors of the company, are pleased to present their Annual Report and financial statements for the year ended 31 March 2023. The Annual Report contains the Director’s report as required by company law.

The financial statements comply with the Memorandum of Association, the Companies Act 2006, The Charities Act 2011, the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102).

Reference and Administrative Details

Directors and Council of Management

The members of the Council of Management, who are also the directors of the company and who served during the year are as follows:

G M Howarth Chairman A Williams Treasurer C T Sinclair-Stevenson J Eccleshare D O’Neill N Forster

The company has no share capital and is limited by guarantee (company number: 1056004 and charity number: 264221).

Registered Office 12 Lant Street, London SE1 1QH

Charity number 264221

Company Secretary Bill Dee

Auditors

Jacob Cavenagh & Skeet, 5 Robin Hood Lane, Sutton, Surrey SM1 2SW

Bankers

Lloyds Bank plc, 69/73 Borough High Street, London SE1 1NQ

Solicitors

Pothecary Witham Weld Solicitors, 70 St George’s Square, London SW1V 3RD

Investment Managers

CCLA Investment Management Ltd, Senator House, 85 Queen Victoria St, London EC4V 4ET

Key Management Personnel The Trustees Bill Dee Robert Marchant Amy Flinders Louise Barling Claire Bell

1

LISTENING BOOKS REPORT OF THE COUNCIL OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2023

Structure, Governance and Management

Constitution and Structure

Established in 1959 (as the National Listening Library Limited), Listening Books is a registered charity incorporated on 26 May 1972. The governing instrument is our Memorandum and Articles of Association dated 22 June 1998.

The Council of Management, whose six members represent organisations and individuals having an interest in people with special needs, are not remunerated for the duties they undertake.

The day-to-day management of the company is delegated by the Council to the Director, who reports to the Council of Management, which approves major decisions and has overall responsibility for the company’s activities. The pay of senior staff is reviewed annually and normally increases in accordance with average earnings bearing in mind charities of similar size and activity.

Election of Council Members

A person or persons may be invited to join the Council of Management of the company where they are:

Board reviews its own performance in changing circumstances and considers whether additional trustees with new skills are required. Trustees are usually appointed by either placing adverts in the charity press or by consideration of whether there is someone suitable known to the company. Potential new trustees have an initial meeting with the Chair, are then introduced to the Board, and only then if elected join the Board. Subsequently they have meetings as necessary with the Chair and receive an induction pack. Further training could be offered if considered beneficial.

Risk management

The charity has undertaken a risk appraisal as required by the Charity Commission. Based on this risk review, the Trustees’ and executive team consider the most relevant risks, and the means by which they may be mitigated, to be as follows:

2

LISTENING BOOKS REPORT OF THE COUNCIL OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2023

Objectives and Activities

The Charity’s objects are:

To relieve disability or incapacity, whether permanent or temporary, arising from any sickness, injury or other physical or mental condition, in particular, by the provision of an audio book library service including recorded literature and other material, together with equipment for the reproduction of such literature or other material, including the advancement of education of persons suffering from such conditions.

We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aim and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.

Achievements and Performance

Uncertainty continues to be a predominant factor in 2023, both in the UK and internationally. Rising ocean temperatures, wildfires, wars in Ukraine, Iran and Ethiopia. At home, food banks running short of supplies, and longer-than-ever waiting lists for hospital appointments. For Listening Books too, it has not been the easiest year on the financial front, but one thing is always a source of reassurance; our long-serving and dedicated staff. I would like to pay tribute to them at the beginning, rather than at the end of this message, because it is they who make the service we give what it is. They seek out the books which will give most delight, they negotiate with our ever-generous publishers, they respond to members' queries and try to ensure any technical hurdles are overcome. We are blessed to have such staff who believe passionately in the value of what they are doing, and whose faith in the difference it makes to so many lives is sustained by the wonderful messages they receive from our members.

For our younger members, many of whom have Specific Learning Difficulties, it is about the excitement of discovering that stories do not have to be decoded from elusive text, but can be enjoyed curled up in a chair. Maybe even with their eyes closed! For students at school or college, it is being able to access the texts they need for their studies. For our adult members, contending maybe with the frustrations of chronic fatigue, Crohn's Disease or arthritis, it may be the delight of listening to the last of a favourite series. As our patron Stephen Fry emphasises, the companionship of another voice telling us stories is incomparable. And what an expansion of our lives too, taking us beyond the limitations of our own circumstances to share in the hopes and fears, setbacks and triumphs of others, whether in Mumbai or Manchester, in 2023 or in 1789.

While income has, for the first time for some years now, been slower to secure, many aspects of the charity's work have been very positive this year. Our membership is at its highest in our history meaning more members at home, in school or in hospitals and hospices are enjoying listening. More members too are discovering the benefit of PressReader, giving them access to a very wide range of newspapers and magazines. And we are delighted that our new membership options for schools have been well received. In the past year we have also become a service provider for the Duke of Edinburgh award scheme, giving participating students the opportunity to see how our service helps people with a very wide range of disabilities.

3

LISTENING BOOKS REPORT OF THE COUNCIL OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2023

So, despite all the difficulties we face in these times, I was reminded recently of how much we have to be grateful for. Reading about the extraordinary Olaudah Equiano, sold many times over as a slave but finally buying his freedom in 1766, I learned how he wrote in his autobiography about the first time he saw a sailor reading a book. Not knowing of reading, he assumed the man was talking to the text. He tells us; "I have often taken up a book and have talked to it and then put my ears to it, when alone, in the hopes it would answer me and I have been very much concerned when I found it remained silent.”

How fortunate we are to live in times when books can indeed talk to us, and Equiano's wish has been realised.

Financial Review

Reserves policy

Unrestricted funds comprise the accumulated funds which are available for use at the discretion of the directors in furtherance of the objectives of the company. Further, it is the intention of the directors that such funds be maintained at a level which, if required, would fund the core costs of the organisation for a period of one year. This requires currently a balance of unrestricted funds of approximately £625,000. This duration takes account of the nature of the funding of the company, where the majority of income is from Charitable Trusts being of a cyclical nature affected by the general economic climate, and legacies which are unpredictable in nature. And this reserves figure takes into account that some unrestricted fund reserves would not be available in cash within the year timescale.

Financial position

The net deficit of unrestricted funds during the year ended 31 March 2023 amounted to £224,136 (2022: £2,191 surplus). This has resulted in total unrestricted funds available for use at the discretion of the Council of Management of £439,796 (2022: £663,932).

Net income on restricted funds amounted to £50,025 (2022: £68,719 net expenditure). This has resulted in total restricted funds at 31 March 2023 of £156,690 (2022: £106,665).

Investment powers

The Trustees accept responsibility for the effective and efficient management of the company’s investments. Management of the company’s investment portfolio is by COIF Charity Funds. The investment objective is to achieve a balance between income and capital growth through investment in cash, bonds and equities. Exposure to equity markets will normally be gained through investment in authorised unit trusts and investment trusts.

Fundraising Policy

The charity is registered with the Fundraising Regulator. Requests for funds are largely through grant applications to sympathetic charitable trusts and the purposes are clearly described. During the year no professional fundraisers were employed and appeals were generally made by email or letter. A complaints procedure is set out as part of the Privacy Policy on the website. No complaints or criticisms were raised concerning the fundraising activities during the period.

4

LISTENING BOOKS REPORT OF THE COUNCIL OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2023

Investment policy

The current investment policy of the charity is to aim to hold bank balances of a minimum of £80,000 mainly for working capital, and the Trustees have an ethical investment policy:

Listening Books investments are managed in an Ethical Fund which invests responsibly according to ESG standards, by excluding companies scoring less than 2 on any FTSE ESG theme. This goes towards ensuring that our investments are compatible with our mission as a charity. One particular ESG issue, Climate Change, is increasingly threatening to pose an existential risk to society itself, not just to the financial system, so it is imperative that investors look beyond financial risk and return and consider the real world impact of their investments. To this end Listening Books is invested in the CCLA Ethical Fund which excludes investment in companies which derive more than 5% of revenues from the extraction of Oil Sands or Thermal (Energy) coal and also companies which derive more than 10% of revenues from extracting or refining Coal, Oil, and Gas. It is clear for example that Oil Sands and Coal extraction have no place in a world of net zero emissions, which we need to reach as soon as possible, and at the latest by 2050. There is also an urgent need for all fossil fuels to be phased out by this date. The full list of investment restrictions on the CCLA Ethical Fund are set out in note 16 to these accounts.

Disclosure of information to auditors

So far as the directors are aware, there is no relevant audit information of which the company’s auditors are unaware and they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

Statement of Council Members’ Responsibilities

The Council members are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Council members, who are the directors for the purposes of company law, to prepare financial statements for each financial year. Under that law the Council members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Council members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of its incoming resources and application of resources, including the net income or expenditure, of the company for that period.

In preparing these financial statements, the Council members are required to:

5

LISTENING BOOKS REPORT OF THE COUNCIL OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2023 The Council members a￿ responsible for keeping adequate accounting records that a sufficient lo show and explain the company's transactions and disclose with reasonable accuracy al any time the financial position of the company and enable them lo ensure that the financial sl8lemenls comply with the Companies Act 2006 They are also responsible for safeguarding the assets of the company and hence for tsking reasonable steps for the prevention and detection of fraud and other irregularities Audltorn A resolution will be proposed at the Annual General Meeting lo appoint auditors lo the company for the ensuing year. Approved by the Council of Management and signed on 11$ behalf by". G Howarth Chairman Dale.. 2f171L}

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF LISTENING BOOKS

Opinion

We have audited the financial statements of Listening Books (the ‘charity’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 12 months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report, including the trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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.

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 course of 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 this gives rise to a material misstatement in the financial statements themselves.

7

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF LISTENING BOOKS

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees’(who are also the directors of the charitable company for the purposes of company law) 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

8

INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF LISTENING BOOKS Irregularities. including fraud. are instsnces of non-compliance with laws and regulations. We design proce¢Jures in line with our responsibilities, outlined above. lo detect material misslatemenls in respect of irregularities, including fraud. The extent lo which our procedures are capable of detecting irregulanlies, including fraud Is detailed below". Based on our understanding of the charity, we identified that the principal risks of non- compliance with laws and regulations related lo employment and financial reporting legislation and we considered the extent lo which non<0mplian￿ might have a material effect on the financial slalemenls. We also considered those laws and regulation5 that have a direct Impact on the preparation of the financial statements such as the Companies Act 2006 ana the Charities Act 2011. We assessed the susceptibility of the charity's financial statements to material misslatemenl, including obtaining an understsnding of how fraud might OCCUf, by making enquiries of management. considering the internal controls in place and discussion amongst the engagement team. We determined that the principal risks were related lo management bias in accounting eslimale$, presentation of separalely disclosed items and management override of ¢onlfoIs. In ￿sponSe lo the nsk5 identified we designed procedures which included. bul were not limited to reviewing Iruslees, minutes, challenging signili¢ant a¢¢ounling e51imales. evaluating the internal controls, agreeing financial statement disclosures to underlying Supporting d¢xumentalion and identifying and testing journal entn'es. A lurther description of our fesponsibililies for the audit ol the financial slalemenls is located on the Financial Reporting Council's website al. http.Ilwww.fre.org ukjaudilorsresponsibililies. This description forms part of our audilorfs report. Use of our roport This report 1$ made solely lo the charitable company's members, as a body, in aceordance with Chapter 3 of Part 16 of the Companies Act 2006 and regulations made under Ihal Act. Our audit Work has been undertaken so that we might stsle lo the charitsble company's members those matters we are required lo stsle lo them in an auditors, report and for no other purpose. To the fullest extent perTnilletJ by law, we do not accept Of assLtme responsibility to anyone other than the charitable company and its members as a body, for our audit work, for this report, o¥ fof the opinions we have formed. Paul Newton FCA (Senior Statutory Auditor) for and on behalf of Jacob Cavgnagh & Skeet Statutory Auditor Chartered Accountants 5 Robin Hood Lane Sutton Surrey SMI 2SW [91, Date.

LISTENING BOOKS STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2023

Notes
Income from:
1e-h
Donations and legacies
Charitable activities
Other trading activities
Total income
2
Expenditure on:
1j-k
Raising funds
Charitable activities
Total expenditure
3
Net gains/(losses) on investments
6
Net income/(expenditure)
Transfers between funds
Net movement in funds
Funds brought forward at 1 April 2022
Funds carried forward at 31 March 2023
Unrestricted
Funds
£
266,506
61,967
16,522
344,995
41,829
513,166
554,995
(13,991)
(223,991)
(145)
(224,136)
663,932
439,796		 Restricted
Funds
£
532,325
-
-
532,325
-
482,445
482,445
-
49,880
145
50,025
106,665
156,690		 2023
Total
£
798,831
61,967
16,522
877,320
41,829
995,611
1,037,440
(13,991)
(174,111)
-
(174,111)
770,597
596,486		 Unrestricted
Funds
£
253,208
59,263
42,884
355,355
42,155
351,180
393,335
40,171
2,191
-
2,191
661,741
663,932		 Restricted
Funds
£
540,351
-
-
540,351
-
609,070
609,070
-
( 68,719)
-
( 68,719)
175,384
106,665		 2022
Total
£
793,559
59,263
42,884
895,706
42,155
960,250
1,002,405
40,171
(66,528)
-
(66,528)
837,125
770,597

All of the activities are continuing. There were no recognised gains or losses other than those stated above. The notes on pages 13 to 21 form part of these financial statements.

10

LISTENING BOOKS BALANCE SHEET AS AT 31 MARCH 2023 Notes 2023 2022 FIXED ASSETS Tangible fixed assets Investments 51,244 303,835 88,634 387,826 355,079 476,460 CURRENT ASSETS Debtors Cash al bank and in hand 94.597 180,070 149.112 181,660 274,667 330,772 Creditors: amounts falling due within one year 33.260 36.635 NET CURRENT ASSETS 241.407 294,137 NET ASSETS 596.486 770,597 FUNDS Unreslricled Reslri¢led 12 439,796 156,690 663.932 106,665 11 NET ASSETS 596 486 770,597 Approved by the Council of Management and signed on ils behalf by.. G Howarth Chairman Dale. ,/9 /25 Comp•ny Reglstratlon No: 01056004 The notes on page$ 13 10 21 fom part of these financial statements.

LISTENING BOOKS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Cash (used in)/provided by
operating activities(see below)
Cash flows from investing activities
Payments to acquire tangible fixed
assets
Proceeds from sale of investments
Cash provided by/(used in)
investing activities
Net cash (outflow)/inflow
Cash and cash equivalents at 1 April
2022
Cash and cash equivalents at 31
March 2023
Cash flows from operating activities
Net (expenditure)
Depreciation
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Cash (used in)/provided by
operating activities		 2023
£
£
(70,592)
( 998)
70,000
69,002
(1,590)
181,660
180,070
(160,120)
38,388
54,515
( 3,375)
(70,592)		 2022
£
£
(100,647)
( 11,571)
-
( 11,571)
(112,218)
293,878
181,660
(106,699)
46,461
( 29,792)
( 10,617)
(100,647)		 2022
£
£
(100,647)
( 11,571)
-
( 11,571)
(112,218)
293,878
181,660
(106,699)
46,461
( 29,792)
( 10,617)
(100,647)
(112,218)
293,878
181,660
(106,699)
46,461
( 29,792)
( 10,617)
(100,647)

12

LISTENING BOOKS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 ACCOUNTING POLICIES

a. Basis of Accounting

The financial statements have been prepared under the Companies Act 2006, the Charities Act 2011 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102). The financial statements are drawn up on the historical cost basis of accounting as modified by the revaluation of investments to market value and prepared in sterling, which is the financial currency of the charity, rounded to the nearest £1.

Listening Books is a company limited by guarantee incorporated in England and Wales. The registered office is 12 Lant Street, London, SE1 1QH. The charity meets the definition of a public benefit entity under FRS 102.

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

b. Tangible Fixed Assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life. Equipment is depreciated over 5 years on cost.

c.

Investments

Investments are stated at market value based on the bid price at the Balance Sheet date and the surplus or deficit of this revaluation is shown as unrealised gains or losses on the face of the Statement of Financial Activities after the Income and Expenditure Statement has been concluded.

Realised gains and losses are calculated as the difference between the proceeds of sale at the date of disposal and market value at the previous Balance Sheet date or cost of acquisition if purchased during the year. These are shown as realised gains or losses on the face of the Statement of Financial Activities and are also included in the Income and Expenditure Statement contained therein.

d. Operating Leases

Annual rentals under operating leases are charged to the Statement of Financial Activities as incurred.

e.

Income

Grants restricted to use in future accounting periods are deferred and recognised in those accounting periods.

Legacies are accounted for as soon as the charity is notified of its legal entitlement, the amount due is quantifiable and its ultimate receipt by the charity is reasonably certain. Amounts receivable after more than one year from the balance sheet date are measured at their present value and an interest element is accounted for each year.

Charitable activities consist of membership subscriptions and trading activities of sales of accessories and other income.

13

LISTENING BOOKS NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2023

1 ACCOUNTING POLICIES (continued)

g. Gifts in Kind (Publishers)

The company receives discounts from content publishers in the year beyond that normally obtained on a commercial basis. These amounts are included in incoming resources and in resources expended and amounted to £128,139 (2022: £195,903).

h. Gifts in Kind (Advertisers)

The company receives discounts from advertisers in the year beyond that normally obtained on a commercial basis. These amounts are included in incoming resources and in resources expended and amounted to £30,718 (2022: £27,884).

i. Gifts in Kind (Legal)

The company receives discounts from legal advisors in the year beyond that normally obtained on a commercial basis. These amounts are included in incoming resources and in resources expended and amounted to £61,132 (2022: £nil).

j. Restricted Funds Restricted funds are those subject to specific restrictive conditions imposed by sponsors or other donors or by the purpose of the appeal.

k. Pension Costs

The company operates a defined contribution scheme in respect of all employees. Contributions are charged in the accounts as they are incurred.

l. Expenditure

All expenditure is accounted for on an accruals basis and includes irrecoverable VAT relating to such expenses. Expenditure incurred in connection with the specific activities as shown on the Statement of Financial Activities represents the direct costs of that activity together with an apportionment of the general overheads of the company as support costs. Where costs cannot be directly attributed, they have been allocated to activities on a basis consistent with the use of the resources. Governance costs are incurred in the course of the company complying with its legal and regulatory obligations.

m. Cash and bank

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.

n. Debtors

Staff loans and other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

o. Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.

14

LISTENING BOOKS NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2023

1 ACCOUNTING POLICIES (continued)

p. Basic financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2 INCOME

Donations and legacies
General donations
Grants
Gifts in kind
Legacies
Charitable activities
Membership subscriptions
Other trading activities
Rent
Other		 2023
£
15,181
543,131
219,989
20,530
61,967
-
16,522
877,320		 2022
£
10,771
503,903
223,787
55,098
59,263
1,224
41,660
895,706
3
EXPENDITURE
Cost of raising funds
Membership services
Support costs
Governance costs
Total expenditure		 Staff
Costs
£
9,765
440,104
14,647
-
464,516		 Depreciation
£
4,798
31,190
2,400
-
38,388		 Other
Costs
£
27,266
480,778
20,732
5,760
534,536		 Total
2023
£
41,829
952,072
37,779
5,760
1,037,440		 Total
2022
£
42,155
917,644
36,840
5,766
1,002,405

Support costs all related to the provision of membership services, and governance costs include auditors’ remuneration of £5,760 (2022: £5,766) which includes VAT and relates to the fee for the audit only. No other remuneration was payable to the auditors during the year.

15

LISTENING BOOKS NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2023

4 STAFF COSTS

TAFF COSTS
Wages and salaries
Social security costs
Pension costs
Other employment costs
Total staff costs
The average number of persons employed by functional activity was:
Cost of raising funds
Charitable expenditure		 2023
£
387,784
28,361
48,371
464,516
-
464,516
2023
No
1
12
13		 2022
£
357,518
29,996
35,983
423,497
-
423,497
2022
No
1
12
13

Members of the Council of Management received no remuneration or reimbursement of expenses during the year (2022: nil).

The total remuneration (including pension and other employee benefits) of the key management personnel of the charity (as detailed on page 1) during the year was £262,590 (2022: £244,449).

No employee received remuneration in excess of £60,000 per annum (2022: nil).

5

TANGIBLE FIXED ASSETS

ANGIBLE FIXED ASSETS
Cost
At 1 April 2022
Additions
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
Released on disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Equipment
£
254,734
998
-
255,732
166,100
38,388
-
204,488
51,244
88,634

16

LISTENING BOOKS NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2023

6 LISTED INVESTMENTS

At market value:
COIF
Total market value
Historical cost
including cash		 At 1 April
2022
£
387,826
387,826
200,133		 Add-
itions
£
-
-		 Disp-
osals
£
(70,000)
(70,000)		 Unrealised
gains/
(losses)
on reval-
uation
£
(10,273)
(10,273)		 Realised
gains/
(losses)
on reval-
uation
£
(3,718)
(3,718)		 At 31
March
2023
£
303,835
303,835
**162,092 **

7 DEBTORS

Other debtors
Prepayments		 2023
£
72,226
22,371
94,597		 2022
£
143,182
5,930
149,112

Other debtors includes amounts falling due after more than one year of £32,254 (2022: £34,829).

8 CREDITORS: amounts falling due within one year

Trade creditors
Other creditors
Accruals and deferred income		 2023
£
12,775
9,953
10,532
33,260		 2022
£
14,538
13,263
8,834
36,635

9 LEASING COMMITMENTS

Operating leases

The charity’s total future minimum lease payments under operating leases at 31 March 2023 were payable as set out below:

Within one year
Within two to five years
More than 5 years
The operating lease charges for the year were:
Hire of premises		 2023
2022
£
£
75,000
75,000
6,250
81,250
-
-
75,000
75,000

17

LISTENING BOOKS NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2023

10 CONTINGENT LIABILITY

In January 2018 the charitable company signed a 10 year lease for the property it occupies. There is a possible liability in respect of a dilapidations claim in excess of the routine maintenance and decoration that the charitable company is required to carry out, but it is not practicable to identify the possible financial impact.

11 RESTRICTED FUNDS

Downloadables
Sponsored Membership
Children's Hospitals
Palliative Care
I.T.System Purchase
PC Purchase
Covid-19 Tablets Fund
Pre-loaded Tablets
Downloadables
Sponsored Membership
Children's Hospitals
Palliative Care
I.T.System Purchase
PC Purchase
Covid-19 Tablets Fund
Pre-loaded Tablets		 At 1
April
2022
£
31,341
-
5,469
6,318
54,025
1,858
1,354
6,300
106,665
At 1
April
2021
£
28,375
-
28,818
17,638
88,765
2,662
4,582
4,544
175,384		 Income
£
136,200
254,225
126,037
4,863
-
-
-
11,000
532,325
Income
£
220,403
297,825
6,400
6,723
-
-
-
9,000
540,351		 Expenditure
£
165,585
244,225
17,569
11,326
25,509
804
179
17,248
482,445
Expenditure
£
217,437
297,825
29,749
18,043
34,740
804
1,728
8,744
609,070		 Transfers
between
funds
£
-
-
-
145
-
-
(520)
520
145
Transfers
between
funds
£
-
-
-
-
-
-
(1,500)
1,500
-		 At 31
March
2023
£
1,956
10,000
113,937
-
28,516
1,054
655
572
156,690
At 31
March
2022
£
31,341
-
5,469
6,318
54,025
1,858
1,354
6,300
106,665

Downloadables

To provide funding for titles bought for the audiobook catalogue in both CD and download formats.

Sponsored Membership

To provide funding where appropriate to cover individual members part or full costs of membership.

Children's Hospitals

To provide access to audiobooks for children in hospitals. Formerly called Readathon.

Palliative Care

To provide access to audiobooks for hospices.

18

LISTENING BOOKS NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2023

I.T.System Purchase

To greatly improve the company website and operating of internal IT systems including book managing system and substantial additional services. The balance on this fund represents both the I.T.System purchased less depreciation, and also the as yet unspent funds.

PC Purchase

To purchase new computer equipment for staff.

Covid-19 Tablets fund

To provide a preloaded selection of audiobook titles to members during the Covid restrictions.

Pre-loaded Tablets fund

To provide a preloaded selection of audiobook titles to adults who are elderly and isolated.

Transfers between funds

Income reassigned as permitted by donor charitable trusts.

12

ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restricted Funds
Unrestricted Funds
Restricted Funds
Unrestricted Funds		 Tangible
Fixed
Assets
£
29,570
21,674
51,244
Tangible
Fixed
Assets
£
5,805
82,829
88,634		 Investment
Assets
£
-
303,835
303,835
Investment
Assets
£
-
387,826
387,826		 Net
Current
Assets
£
127,120
114,287
241,407
Net
Current
Assets
£
100,860
193,277
294,137		 Total
2023
£
156,690
439,796
596,486
Total
2022
£
106,665
663,932
770,597

13 LEGAL STATUS

The charitable company is limited by guarantee. The liability in respect of the guarantee, as set out in the Memorandum and Articles of Association, is limited to £1 per member of the company. There were 6 members as at 31 March 2023 (2022: 6).

14 RELATED PARTY RELATIONSHIPS AND TRANSACTIONS

N D Forster, a trustee of Listening Books, worked at Overdrive Inc. in the year. During the year £40,602 (2022: £27,178) was paid to Overdrive Inc. in respect of purchases.

19

LISTENING BOOKS NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2023

15 PROVISIONS AND CONTINGENT ASSETS AND LIABILITIES

The charity is receiving payments from a legacy that has three remaining components to be collected and distributed by the estate. Two components relate to loans the estate made to two individuals, which are being repaid over periods ending in 2029 and 2042. Annual payments are received by the charity from the estate and an asset of £32,254 (2022: £34,829) has been recognised in respect of these loans.

The third component of the legacy is in respect of a property subject to a protected life tenant. At today's prices, receipt by Listening Books is likely to be in the region of £45,000. In accordance with the SORP para 5.34, no asset has been recognised in respect of this by the charity. The charity will only recognise this component of the legacy when the estate has vacant possession of the property. However, the estate is also required to pay for certain major repairs, which it pays for by reducing the annual payments to legatees in respect of the two components described above. No provision has been made against this due to the inherent uncertainty of the payments to be made. Legacy income has been reduced in the year by £4,914 (2022: £2,575) in relation to the reduction in annual payments received.

20

LISTENING BOOKS NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2023

16 INVESTMENT RESTRICTIONS COIF CHARITIES ETHICAL INVESTMENT FUND

The COIF Charities Ethical Investment Fund is managed in accordance with an ethical investment policy that is set through consultation with unitholders. This requires CCLA to dedicate capital to positive investments, engage with companies to achieve positive changes in business practice and implement the following ethical restrictions.

Theme Further Details Exclusion Criteria
Climate Change Oil sands extraction Companies that derive more
than 5% of their revenue
from the extraction of these
fuels are restricted
Energy coal extraction
Other ‘Fossil Fuel’
Extraction		 Companies that derive more
than 10% of their revenue
from extracting and refining
coal, oil or gas
Electrical Utilities No investment in companies
that cannot align with the
Paris NDCs
Armaments Strategic military sales Restricted if derive more
than 10% of revenue from
strategic military sales
Civilian firearms 10% revenue restriction
Nuclear Weapons,
Landmines, cluster
munitions		 Investment prohibited if
involved in the production of
these weapons
Oppressive Regimes Sovereign Debt No debt from countries
identified by the Ethical
Fund Advisory Committee
as being the most
oppressive
Tobacco 10% revenue restriction
Alcohol 10% revenue restriction
Adult Entertainment 10% revenue restriction
Gambling 10% revenue restriction
Animal Testing Testing of cosmetics on
Animals		 Restricted if in priority sector
and chooses to conduct
testing on animals
High Interest Rate Lending 10% revenue restriction
Specific Client Restrictions Production of single purpose
abortifacients		 Restricted if a producer of
single-purpose abortifacient
Baby Milk Substitutes Minimum responsibility
standards
ESG Minimum Standards Score lass than 2 on any
FTSE ESG Theme		 Comply/explain approach
applies
Respecting International
Norms		 Substantiated allegations of
non-conformity with
recognised labour, human
rights, biodiversity and
climate change standards		 Engagement that can lead
to divestment if no progress
is made
Third Party Funds Screened Against Ethical
Investment Criteria

21