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2022-03-31-accounts

THE LONDON LIBRARY 2021 2022 Annual Report and Accounts 2021-2022

IN MEMORIAM Her Majesty The Queen

We were deeply saddened by the death of our Patron, Her Majesty The Queen, on 8 September 2022.

Queen Elizabeth II became Patron of The London Library in 2004, following the death of the Queen Mother, and the Library is grateful for her service and commitment over many years. As a mark of respect, a two-minute silence was held at 11am on 9 September 2022, and a flag was flown at half-mast throughout the period of national mourning. The Library was closed on 19 September, the date of Her Majesty’s funeral. The Trustees sent condolences to the Royal Family, and Philip Marshall was honoured to represent the Library at the funeral service.

A book of condolence was made available in the Issue Hall for members to sign and photographs of Her Majesty in the Reading Room, taken during her visit for the Library’s 150th anniversary in 1993, were shared with members in our magazine and email newsletter and on our website.

Sir Howard Davies Philip Marshall CHAIRMAN DIRECTOR

Her Majesty The Queen visiting The London Library with His Royal Highness the Duke of Edinburgh in 1993.

ANNUAL REPORT AND ACCOUNTS 2021-2022
TABLE OF CONTENTS Page
Administrative information 2
Introduction from the Chairman 3
Introduction from the Director 4
Highlights of the year 5
Trustees’ Annual Report
Introduction 7
Public benefit 7
Achievements and performance 8
Review of operations during the year 9
Plans for 2022-2023 10
Financial review 11
Structure, governance and management 14
Statement of Trustees’ responsibilities 16
Independent Auditor’s Report to the Trustees 17
Accounts 19
Statement of Financial Activities 19
Balance Sheet 20
Statement of Cash Flows 21
Notes to the Accounts 22
Donations and bequests 39
Organisational information
Ten-year financial summaries 43
Library funds as at 31 March 43
Membership at year-end
44
Ten-year summary of membership 44

London Library Charity Registration no. 312175[n] London Library Trust Charity Registration no. 312175-1[n] Vat Registration no. 239 6572 28

2 • ADMINISTRATIVE INFORMATION

Charity Name:

The London Library

Registered office and principal place of business: 14 St James’s Square, London SW1Y 4LG Incorporated by Royal Charter, registration number: RC000325 Charity registration number: 312175

TRUSTEES – Trustees and senior staff were in office from 01 April 2021 until 31 March 2022 unless shown otherwise (Note: numbers in brackets refer to membership of committees listed at the foot of this page)

Chairman

Treasurer

Other Trustees

Will Harris (2,6) David Lough (4,5) Giles Milton (1,3,6) Sophie Murray (1,6) (retired 15 November 2021) Rick Stroud (1,3,4) Sara Wheeler (2,6,7) Stephen Withnell (4)

Yassmin Abdel-Magied (3,6) Alain Aubry (3,4) John Colenutt (4,5) Isabelle Dupuy (4,5,7) Patrick Fleming (1,3) Daisy Goodwin (4,6) Stephanie Hall (1,2)

SENIOR STAFF

Executive Team

Director (Chief Executive) Director of Collections and Library Services Director of Finance and Resources Membership Director Fundraising Director

Philip Marshall LLB (Hons) MBA Matthew Brooke BA (Hons) MA Chris Gilbert BSc (Hons), ACMA (from 8 March 2022) Felicity Nelson BA (Hons) MA Melanie Stoutzker BA (Hons), PGDip

Heads of Department

Building and Facilities Manager Head of Acquisitions Head of Bibliographic Services Head of Collection Care Head of Marketing and Communications Head of Development (Fundraising) Head of Member Services

Jeremy Cox BSc (Hons) Gill Turner MA (Hons) MA MCLIP Fay Harris LLB (Hons) PGDip MCLIP Kate Sloss BA (Hons) PGDip (retired 29 April 2022) Josephine Noti BSocSC (from 17 January 2022) Anna Clark BA (Hons) (to 27 May 2022) Amanda Stebbings BA (Hons) MLib MCLIP

ADVISERS

Bankers

Barclays Bank plc 1 Churchill Place, London E14 5HP

Solicitors

Bates Wells LLP 10 Queen Street Place, London EC4R 1BE

Auditors

MHA MacIntyre Hudson 6th floor, 2 London Wall Place, London, EC2Y 5AU

Pension consultants

Broadstone Limited 100 Wood Street, London EC2V 7AN

Investment Managers

Newton Investment Management BNY Mellon Centre, 160 Queen Victoria Street, London EC4R 1BE

BlackRock

12 Throgmorton Avenue, London EC2N 2DL

Key to Committees:

INTRODUCTION FROM THE CHAIRMAN

• 3

The continuation of the pandemic made our 180th year a challenging one for the Library. Nevertheless, despite the changing restrictions and ongoing uncertainty, we kept a clear focus on our two core strategic aims – to grow the number of people making use of the Library’s tremendous collection, and to reduce our annual operating deficit.

Membership of the Library increased by 337 (4.8%) over the year, bringing with it a 5% increase in membership income. This is the fourth consecutive year in which the number of members has gone up, the first time this has happened for 30 years. My thanks go to all our members, new and longstanding, for their support of, and commitment to, the Library.

We were pleased to be able to revitalise our public programme this year with a growing number of talks and events, including the very successful online LitFest. We also created more opportunities for outreach by partnering with organisations such as English PEN, Arvon and the Grenfell Dedicated Service to provide access to literature for those that would otherwise be unable to benefit from the Library’s extensive resources. Enabled by philanthropic support, we are also working with more schools on a subsidised basis than ever before, and we are seeking funds to increase collaborative learning and participation events.

Financially, the headline figures show net expenditure (before investment gains and movement on the pension scheme asset) of £722k but this includes over £500k of project expenditure met from the Tom Stoppard Innovation Fund. This brought forward

fund allowed us to make significant improvements to the Library without the need to raise additional income or adversely affect the operational deficit calculation. We reviewed and revised how we calculate our operating deficit this year to better reflect the underlying question of financial sustainability, and the deficit for the year was £164k, an improvement on last year and a significant achievement compared to a deficit of over £630k only five years ago.

Unfortunately, the inflationary pressures on the Library that began during 2021/22 will grow in the year ahead and could have the unwelcome twin effects of significantly reducing our rate of membership growth and increasing our costs. We remain committed to our current plan to remove the annual operating deficit by March 2024, but must recognise that these remain unpredictable and financially challenging times.

Throughout the year we have received generous and vital support from donors. Of note is the Library Fund Appeal which raised £90k to enable the installation of energy-efficient LED lighting in the Backstacks that will improve our environmental footprint, reduce energy costs, protect the book collection and improve the browsing experience. A number of members have also been kind enough to remember the Library in their wills, and the legacies they have left will provide significant support to our work. We are indebted to all our supporters for their generosity and I particularly want to note the substantial bequest of the late Mr Stephen James who left a portion of his estate worth £360k to the Library.

As ever, I am grateful to my fellow Trustees for the time, energy and commitment they bring on the Library’s behalf. During the year, we said goodbye to Sophie Murray who resigned as Trustee after eight years of service, and I thank her for the contribution she has made. We will be appointing a replacement, alongside other new Board members, in November 2022.

Finally, on behalf of all the Trustees I would also like to thank the Director, Philip Marshall, and the Library’s dedicated and expert staff for all their hard work and commitment during another difficult year.

Sir Howard Davies

4 • TRUSTEES’ ANNUAL REPORT 4 • INTRODUCTION FROM THE DIRECTOR

Notwithstanding the challenges and disruption caused by the second year of the pandemic, there has been much to celebrate during 2021/22. In particular, we are all delighted that membership has continued to grow and that we now have our highest number of members since 2008. This demonstrates the renewed appeal of the Library in recent years and with the highest rate of growth being amongst the under 30s, we can be optimistic about the Library’s future.

Although we began the year on a positive note by reopening the doors on 12 April 2021, there were still many restrictions placed on how members could use the Library this year including the ongoing need for masks and social distancing. I am grateful to all our members for the patience and kindness showed to the Library team and each other during this difficult period. We are for the most part a silent community, but a community nonetheless, and that spirit was very evident and much appreciated.

For 180 years, the Library has inspired and supported the creativity of its members and in May we took the opportunity to celebrate our birthday with the online LitFest. The event featured over 50 speakers in three days of wonderful literary discussion and was very well received. Watch this space for future events.

Another birthday project saw us install a whole new display of pictures on the ‘Red Staircase’, reflecting a much wider range of illustrious past members, photos from some of the many

events that go on at the Library, and a collage of cover images from a small proportion of the hundreds of books published by members over the last couple of years. We certainly enjoyed putting together this celebration of our members’ creativity.

The Library continued to support writers of the future this year with our highly popular Emerging Writers Programme (EWP). The third cohort began in July and we published a superb volume of new writing by EWP alumni in November. We look forward to celebrating the publishing successes of our participants in future.

Of course, the heart of the Library is our tremendous collection. As well as adding over 3,500 books this year, we also completed a major project to make thousands more items discoverable on our online catalogue – books that could, up until now, only be found through the on-site Guard Books in the Issue Hall. This work was funded by previous donations to the Tom Stoppard Innovation Fund and, as ever, we are extremely grateful to everyone who has supported the Library with donations – we simply could not do all of this without your generous gifts.

Towards the end of the year, the Library started to feel the impact of significant inflationary pressures and this has intensified in the months since then. I am sure members are also being personally affected by the unusually high increases in the cost of living. This will make for a very challenging year ahead but I hope members will continue to find the Library a valuable part of their lives.

Philip Marshall

• 5 • 5

HIGHLIGHTS OF THE YEAR

MEMBERSHIP GROWTH

In spite of the challenges created by the pandemic, Library membership grew by a net 337 in 2021/22 marking a four year growth period – something that has not been experienced for 30 years. Over 1,339 new members joined the Library during the year, representing an increase of nearly 5% above the previous year. This was driven largely by the Remote Access membership offering, which provides access to the collection online and through postal loans. Sadly, the number of members withdrawing from membership also increased to 1,005, but this is unsurprising, perhaps, given the many periods of restriction during the year. We are extremely grateful to those members who remained in membership throughout such a difficult time, resulting in a retention rate of 86%.

RETRO-CATALOGUING PROJECT

Major progress in making the collections widely accessible was achieved through the retro-cataloguing project. Over 20,000 items were added to the online catalogue, removing the need for members to search the printed records in the Library’s Guard Books. The project also included 1,740 items from the Per Nozze special collection. 95% of our collections are now discoverable in our online catalogue and a project is currently underway to make available the remaining 5%, which are currently recorded in a separate database. These additional items consist mostly of short-form publications that can already be found in a digital format through our online subscriptions.

POSTAL LOANS

Having begun to offer free postal loans during the lockdown of 2020, the Library’s dedicated staff maintained this facility throughout the year. Postal loans provided a vital service, maintaining access to the collection, and enabling members to keep reading, researching and working. We maintained the members’ increased borrowing allowance, with all postage costs covered by the Library. As a result, 9,531 books were posted out to members during the year.

LITFEST AND EVENTS

We celebrated our 180th year in 2021 with a wonderful online event, the three day London Library LitFest. The programme featured over 50 speakers including Sir Salman Rushdie, Sarah Waters, Sir Tom Stoppard, Sir Simon Schama and Suzannah Lipscomb, plus a specially created, staged adaption of A Room of One’s Own with Nina Sosanya. The innovative format engaged nearly 8,000 viewers, drew new international audiences and earned a FutureBook commendation as one of 2021’s most prominent events.

This year also saw the welcome return of in-person events to the Library’s Reading Room, beginning with the Christmas party in 2021, which welcomed speakers such as Katy Hessel, Jennifer Higgie and Inua Ellams. We also continued to work with partners such as Jewish Book Week and offered writing workshops in partnership with Write & Shine.

EMERGING WRITERS

We received almost 1,000 applications for our Emerging Writers Programme, which started its third year in 2021. The 40 new writers in this year’s cohort were able to use the Library remotely and in-person (when restrictions allowed), and conducted their peer groups and masterclasses online. We also launched an anthology of new writing from our second cohort called From the Silence of the Stacks, New Voices Rise Volume II . It can be downloaded for free from the Library website at londonlibrary.co.uk/images/NewVoicesRiseVolII.pdf

FUNDRAISING

This year’s Library Fund Appeal again demonstrated how our members make a vital impact and contribution to the Library through their generosity and support. The ‘Bring Light to the Stacks’ appeal raised £90,000 to enable installation of LED lighting to reduce costs and improve efficiency. Work will begin in 2022/23. Members will have seen the results of a previous appeal with the reopening of the fully refurbished ‘Red Staircase’ toilets in March 2022.

6 • TRUSTEES’ ANNUAL REPORTHIGHLIGHTS OF THE YEAR

We are also grateful for all the vital unrestricted support from Founders’ Circle patrons in the UK, North America and Europe, and to those leaving gifts in their wills. This important funding, along with charitable trust grants and significant donations from individuals, helps the Library to continue its day-to-day work and undertake special projects such as widening access and supporting new writers.

PICTURE PROJECT

A new picture display was installed on the Library’s ‘Red Staircase’ featuring famous members, past and present, to showcase the diversity of our membership and their creations. Among the pictures are Library events such as the staged adaptation of The Time Machine , photographs of the first Emerging Writers Cohort and London Library Magazine covers.

The Issue Hall’s vibrant new books display, made up of six large panels, also celebrates the extraordinary industry of London Library members. Featuring an array of covers from around 120 of the thousands of books written by Library members during the last three years, it is a striking reminder of the Library as a centre of literary creativity.

MANAGING THE ARCHIVE

An 18-month project began this year to improve the cataloguing, management and storage of the Library’s rich institutional archive. The Project Archivist has been able to improve the storage conditions of many or our assets and records, making fascinating discoveries along the way. Early work has already revealed new material including the discovery that Mark Twain was a Library member.

• 7 • 7

TRUSTEES’ ANNUAL REPORT

INTRODUCTION

The Trustees of The London Library present their report and the audited accounts of the charity for the year ended 31 March 2022. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s Royal Charter and the relevant accounting standards and guidance.

The London Library’s charitable object is the advancement of education, learning and knowledge by the provision and maintenance of a Library in London. Founded in 1841, the Library’s primary purpose is to provide readers, writers and researchers with the riches of a national library for use in their own homes or workplaces or within the Library’s own premises. By acquiring the most important published works in the humanities and arts in each generation and discarding very little from the shelves, the Library has built up a collection of over one million items including books, newspapers, pamphlets, reports and journals dating from the 16th century to today. The Library continues to preserve and extend this extraordinary accumulation so that it will provide inspiration for both present and future generations.

The Library seeks to provide the most direct and liberal access to the published written word by maintaining a high proportion of the collection on open-access shelves in our central London, Grade IIlisted building. The volumes may be freely browsed by members, with the majority available for loan and only the most precious or fragile items requiring invigilated access. In addition, the Library has substantial online resources including ebooks, newspaper archives and access to thousands of online journals and periodicals.

Offering facilities conducive to reading and scholarship, the Library aims to provide a prompt, reliable and courteous service to meet the expectations of users, perpetuating a spirit of willing collaboration with our highly qualified and specialist staff. We host many active member groups such as the Philosophy Group, the Non-Fiction Writers Group and the Gender Studies Group, and have a popular programme of literary events and activities open to members and non-members alike.

PUBLIC BENEFIT

Membership is open to all. The Library aims to make its collections, services and facilities available to meet the needs of a broad spectrum of readers, many of whom have no access to other loan collections and online resources of comparable depth and reach to those found in universities or specialist

institutes. The Library’s status in the nation’s heritage is well recognised and, over the years, it has absorbed special collections from a number of other organisations which could no longer house them. Daily or weekly reference tickets can be issued to those who need access to materials not available elsewhere but do not wish to commit to full membership. Furthermore, items from the Library’s collection are made accessible to public library members via the Inter-Library Loan scheme.

Many Library members are writers, and by assisting authors in their research prior to publication of original work, the Library contributes to the cultural enrichment of the whole nation. In this respect it is comparable to other great institutions dedicated to the arts and culture which, if they ceased to exist, would be missed even by those who make little or no direct use of them. Although not easy to measure, this is an important public benefit, as readers who have seen the tributes to the Library and its staff in the Acknowledgements pages of countless books over many decades will be aware.

Fees are set in the context of the Library’s overall budget and are approved by the members at their Annual General Meeting. The ordinary annual fee for individual full membership is currently £555 (£525 if paid by annual direct debit), or £46.25 per month, with Young Person’s membership available to anyone 29 or under at half the full rate. In addition, the Library offers Remote Access and Associate memberships at a lower price than full membership, for those that wish to use the collection and the Library’s resources without full access to the building or at off-peak times. Corporate and charitable bodies pay relatively higher fees and nominate representatives who access the Library’s facilities on their behalf. Separate charges may be made for postal loans and for extra books above the standard allowance, but the annual fees due from each member are not dependent on either the nature or the amount of usage made of the Library’s facilities by that member, which can vary considerably. Whilst many of the Library’s members are active writers and researchers, there are many others whose usage is more occasional but who see the Library as a cause worth supporting precisely because of its wider public benefits.

For an institution that strives to be a centre of excellence in its field, the Library’s fees are not high in relation to the value of the services it provides, and a range of payment options is available. We also undertake occasional offers and promotions to attract new members – such as discounted membership to

8 • TRUSTEES’ ANNUAL REPORT

mark National Writing Day. Nevertheless, there are people who need the range and depth of material and the generous access that are the Library’s hallmark but who are unable to afford the full fees, particularly as the financial rewards from writing are generally modest and often unreliable. In such cases, applications can be made to the Supported Membership Scheme, through which The London Library Trust or other restricted funds can be used to provide support where there is clear evidence of need. The majority of successful applications represent a fee subsidy of between 30% and 60%. During the year, 34 new Supported Memberships were awarded (2021: 32) bringing the total number of members in receipt of this fee subsidy at 31 March 2022 to 276 or 4% of the total membership (31 March 2021: 279 or 4%). The total amount of such fee subsidies paid in the year was £63k (2021: £62k), representing 2.2% of the Library’s total income from annual membership fees (2021: 2.3%).

The Library delivers additional educational benefits to young people via schools memberships. As at 31 March 2022, there were over 50 schools in membership, with 20% having joined via the Subsidised Schools Membership Scheme, which offers state schools free membership of the Library for a year.

Our educational activities also include a diverse programme of literary talks, events, panel discussions and other activities featuring leading writers, poets, historians and key speakers. These events are open to both members and non-members, and many can be accessed via online recordings on our website. Additionally, The London Library Magazine , published three times a year, includes articles about, and inspired by, the Library, our collections and our members. The Magazine can also be freely accessed online.

The Library also supports the development of new writing talent though the Emerging Writers Programme, granting up to 40 free annual memberships to aspiring new writers selected on merit by a panel of judges. Applications are based on the submission of an example of writing and successful applicants participate in a 12-month programme of activities to help nurture their writing careers.

An impact report was produced for the Library in 2020 in partnership with consultants Nordicity and Chartered Accountants Saffery Champness. The report identified that the Library produces an annual contribution of over £21m to the UK economy and gave an insight into the production of work from Library members, which includes over 700 books, thousands of published newspaper and magazine articles, along with screenplays, theatre scripts and other work.

In setting the Library’s objectives and planning its activities, the Trustees give careful consideration to the Charity Commission’s published guidance and other research on public benefit and its reporting.

ACHIEVEMENTS AND PERFORMANCE

Performance against strategic objectives:

The Library’s Strategic Plan for 2018/19 to 2022/23, ‘New Foundations’, was launched in autumn 2018. Due to the COVID-19 pandemic, the Trustees have extended the plan by a year, with a new expected end date of 2023/24.

The strategy is based around two key goals, supported by a number of key objectives. The goals are:

Progress towards achieving these goals in the year is set out below:

1. Awareness, access and engagement

The Library’s public profile was raised through print media and online features this year. Notable highlights include the Daily Telegraph feature about Charles Darwin as one of the Library’s “best book returners” and a photo story on the Library’s reopening after lockdown in The Telegraph , The Times , the i newspaper, and the BBC. The Library was active on social media and via the website and newsletter, all of which have seen growth this year.

The Library has maintained a regular and varied speaker event and panel discussion programme during 2021/22, which continues to introduce non-members to the Library and increase awareness of our activities. Initially our events were online only, but we reintroduced in-person events in December 2021 when government rules allowed, and with appropriate measures in place to ensure safety. This year also included the flagship LitFest event to celebrate 180 years, with online activities delivered over three days, featuring 51 high-profile speakers plus a new adaption of A Room of One’s Own . The LitFest reached an audience of nearly 8,000 viewers.

Key partnerships and initiatives, such as The London Library Emerging Writers Programme, the Supported Membership Scheme and Remote Access membership, and a pilot programme of supported state school memberships have continued to broaden the reach and impact of the Library in 2021/22.

• 9

Membership of the Library has increased by a net amount of 337 (4.8%) this year, and we were particularly pleased to see an additional 174 Young Persons Memberships – an increase of 28% over the previous year.

2. Financial sustainability

The Library measures sustainability in terms of its annual operating deficit/surplus. This is the difference between the Library’s income from normal operations and the relevant operating expenses, excluding capital expenditure, depreciation, donations that are designated or restricted to funding capital projects, and other fully-funded project expenditure that sits outside normal operations. Note that the operating deficit calculation has been revised and rebased this year (see Financial Review section on page 11) .

There has been a decrease in the operating deficit from £384k last year to £164k in 2021/22 (both based on the revised methodology adopted this year). This is primarily due to an increase in income from memberships of £175k, although there were other significant movements this year including the loss of income from the Government’s Job Retention Scheme. However, we also had additional support for the Emerging Writers Programme, and an increase in legacy income, particularly thanks to the generous bequest of the late Stephen James. This is unrestricted funding and therefore forms part of our operating income. Overall, total income from donations and legacies was at much the same level as last year.

Total expenditure was significantly higher than in the previous year, at £4,767k compared to £4,231k in 2021. However, over £500k of this expenditure relates to improvement projects funded by the Tom Stoppard Innovation Fund, including the retro-cataloguing project and the creation of the Art Reading Room. As these initiatives were fully funded from previously designated funds they are excluded from the operating deficit computation. Without those costs the underlying operational expenditure excluding depreciation showed only a very slight increase compared to the previous year.

REVIEW OF OPERATIONS DURING THE YEAR

COVID-19

Following our reopening in early April 2021, the Library stayed open throughout the year albeit with restrictions placed on how members could use the Library including desk booking, the wearing of masks and social distancing. Nonetheless, we managed to respond and adapt very quickly to changing circumstances so as to minimise risk and the impact on operations. A risk assessment was put in place at the start of the first lockdown and has continued to be updated as circumstances changed. All government guidelines were followed to ensure the safety of members and staff, with communication made at each stage as the rules changed over the year.

Early in the pandemic, we decided to offer free postal loans during lockdown and this continued throughout 2021/22. All postage fees were waived to help members maintain their connection with the Library and over 9,500 books were posted out. This initiative has been well-received, attracting frequent messages of support from members.

Collections

We continued to add to the collection in all subject areas, with purchases totalling £283k (2021: £248k). This amount includes £155k (2021: £134k) for digital/online resources, reflecting the growing importance of this aspect of the collection for our members, and £16k (2021: £26k) for print periodicals. The Drue Heinz Literary Fund helped to provide income towards the cost of acquisitions totalling £154k (2021: £112k).

Donations of £9k (2021: £10k) to the Book Fund contributed towards care of the collection, as did £6k (2021: £2k) from those donating through the Adopt a Book programme. We also added to the collection donated books and periodicals estimated to be worth £9k (2021: £4k), and we are most grateful to all the donors listed on page 41 for their generosity. Note that no entries are included in the accounts for donated books.

Services

Work to achieve these two key strategic objectives will continue in 2022/23, the penultimate year of the New Foundations Strategic Plan.

58,524 books were loaned during the year (2021: 41,118) including the 9,531 sent through the postal loans service (2021: 4,495) and 88 borrowed through the Inter-Library Loan system on behalf of members (2021: 45). We also loaned 631 books and supplied 53 photocopies of articles to other libraries. While these figures are lower than compared to pre-pandemic

10 • TRUSTEES’ ANNUAL REPORT

years, it is a strong result in the context of reduced demand from universities until late autumn 2021. In addition, we placed and processed 29,993 requests to retrieve and set aside material in the course of dealing with a wide range of enquiries from members (2021: 36,677).

As we seek to find new ways to increase financial sustainability, we also saw a large increase in the use of the Library’s spaces for commercial venue hire and filming work following the end of pandemic restrictions, generating income of £40k in the year.

Staff and volunteers

Membership

Total membership numbers began the year at 7,055, rising to 7,392 at 31 March 2022, a net increase of 337 (2021: 105). Beneath this headline figure there was considerable movement, with 18% of the total members at year end having only joined the Library in the last 12 months.

2021/22 Membership table

Annual Life Reinstatements Total New members 1,334 5 - 1,339 Reinstatement - 3 3 Commutation (12) 12 - - Withdrawals / deaths (967) (38) - (1,005) Net 355 (21) 3 337

Of the new annual members 458 (34%) were under the age of 30 (2021: 264).

Fundraising

The Library Fund Appeal outperformed expectations raising some £90k towards LED lighting in the Back Stacks, and we were also successful in generating over £100k to fund the Emerging Writers Programme, which is now supporting its third cohort of talented participants. The Programme is only possible due to the support we receive from many generous donors including the International Friends of The London Library, the Peter Stormonth Darling Charitable Trust, the John S Cohen Foundation and the Julio and Maria Marta Núñez Memorial Fund.

Founders’ Circle patrons provided £235k of unrestricted funding this year. Legacy income was almost £400k, thanks primarily to the generosity of Mr Stephen James who left most of his estate to a number of charities, with the Library’s share amounting to £360k. We received this in August 2022 and it has been fully recognised in the accounts. We are also aware of some further bequests from members who have kindly remembered us in their wills, however these do not, as yet, meet the requirements to be recognised in the accounts.

As ever, our thanks are due to all those members, patrons, trusts and other supporters who were able to make grants, donations or gifts this year. Details of our supporters can be found on pages 39-41.

We ended the year with 75 staff (including casual staff who assist at events and functions), a net increase of five compared to the previous year. There were some changes among the senior staff with the departure of Michael Clayton and the arrival of the new Director of Finance and Resources, Chris Gilbert. We also welcomed Jo Noti as Head of Marketing and Communications, who took over from Julian Lloyd.

Two years of a global pandemic presented some previously unforeseeable obstacles to Library operations and we are grateful to all the staff for their hard work and commitment to the Library during this time. We would also like to thank longstanding Collection Care Volunteer, John Perkins who makes a valuable contribution to our conservation work. Recognising how difficult the COVID-19 period has been for staff, the Library made a staff wellbeing payment of £500 per person this year from the Staff Welfare Fund, and there are plans for further payments in 2022/23.

PLANS FOR 2022-2023

We remain committed to the Library’s Strategic Plan ‘New Foundations’ which runs from 2018/19 to 2023/24.

The plan contains the two strategic goals referred to above:

  1. Substantially increase awareness of, access to and engagement with the Library

  2. Remove the annual operating deficit by the end of 2023/24

The plan also includes eight key objectives:

  1. Raise our public profile and create targeted marketing and communications campaigns to drive increased awareness, use and membership, with additional focus to attracting and welcoming younger people.

  2. Create new ways to access and engage with the Library including:

  3. n a high quality programme of events and outreach activity at the Library and other venues

  4. n new ways to join or use the Library aimed at less

    • frequent visitors and those for whom the membership fees are a major obstacle

• 11

  1. Deliver new spaces at the Library to accommodate:

  2. n our growing programme of events, outreach activity and private venue hire

  3. n more reader spaces

  4. n comfortable, catered, less formal spaces where members can meet, work and share ideas

  5. Find a new model for our library collection that allows for continued acquisition and maintains the accessibility and usefulness of the collection, while working within the twin constraints of available storage space and cost.

  6. Increase our revenue fundraising, making fundraising a bigger proportion of our overall income.

  7. Undertake capital fundraising to finance the creation of new spaces.

  8. Develop new ways to increase our income from other sources, such as private venue hire.

  9. Restrict cost increases, find more ways to work more efficiently and seek to minimise the impact on members.

Work will continue in 2022/23 to achieve the key goals and objectives.

FINANCIAL REVIEW

The table below summarises the Library’s financial position over the last three years. This format separates the results of Library operations from net fundraising activity and investment income, with adjustments made for changes in the unrealised value of investments and the actuarial revaluation of the Staff Superannuation Fund (SSF) pension asset. Further details can be found in the accounts.

The Library’s overall surplus for the year (i.e. the net increase in funds) is £627k. This is lower than in 2020/21 due primarily to two factors: the recognition in the previous year of the significant Christopher Smith legacy (£1,100k), and a smaller unrealised gain in the value of investments of £643k (2021: £1,034k). To date, the Library has received £600k of the Christopher Smith legacy and we await receipt of the remaining amount estimated at £500k (which is dependent upon the sale of property and the full liquidation of the estate).

Having achieved a surplus in 2020/21, the financial position of the SSF has continued to improve, mainly due to rising interest rates.

2022 2022 2021 2021 2020 2020 £000 £000 £000 £000 £000 £000 Library Operations Membership and Trading Income 2,894 2,700 2,844 Less: related expenditure (4,437) (3,942) (3,759) (1,543) (1,242) (915) Fundraising Activity Fundraising income 914 1,999 722 Less: related expenditure (329) (289) (434) 585 1,710 288 Net Investment income 236 196 319 NET INCOME/(EXPENDITURE) before other gains/(losses) (722) 664 (308) Gains/(losses) in the value of investments 643 1,034 (568) Increase/(reduction) in the estimated surplus of the SSF 706 711 (382) NET MOVEMENT IN FUNDS 627 2,409 (1,258)

12 • TRUSTEES’ ANNUAL REPORT

This surplus on the scheme is appropriately recognised on the balance sheet as an asset although the Trustees do not consider it as available to be used by the Library.

There was a 7% increase in income from Library operations (i.e. membership and trading income), primarily made up of membership fees at £2,800k (2021: £2,659k), although the reinstatement of a talks and events programme after the constraints of the pandemic contributed £29k (2021: nil), and venue hire activities also recovered, helping income from trading activities to increase to £54k (2021: £35k).

The total costs of running the Library, including operational costs, marketing and fundraising expenditure, were £4,767k (2021: £4,231k). This is a 13% increase, however it includes some significant project activity funded by the Tom Stoppard Innovation Fund (TSIF), including substantial work in cataloguing items, and in developing our archives, and payments from the Staff Welfare Fund (SWF). After accounting for these amounts, the revised figures are as follows:

2022 2021 2020
£000£000 £000
Net income / (expenditure)
before other gains/(losses) (722) 664 (308)
Expenditure met by TSIF/SWF 553 58 -
Adjusted net income/
(expenditure) (169) 722 (308)

Operating Result

The Operating Result is an indicator of underlying financial sustainability, which is derived from the Library’s accounts but does not appear in the financial statements. It is based on adjusted figures from the Statement of Financial Activities and excludes unrealised investment movements and large one-off items that would otherwise distort the underlying result. The Operating Result has produced an annual deficit for many years, and a key aim of the Strategic Plan is to eliminate the Library’s Operating Deficit by 2023/24.

The Operating Result is calculated as the Library’s income less relevant operating expenses. The calculations exclude substantial one-off donations which are designated for, or restricted to, particular purposes, as well as contributions to endowment funds, and dedicated large-scale fundraising campaigns such as the Tom Stoppard Innovation Fund. Expenditure met from such funds is also excluded as it does not form part of the

daily operations of the Library. An adjustment is also applied to account for contributions to the SSF pension scheme which were made in the year.

A review of the Operating Result methodology was undertaken this year to ensure that the calculation adequately reflects the Library’s current and future operating model and gives a reliable indicator of financial performance. The revised approach excludes depreciation and amortisation as these are non-cash transactions based on historic capital expenditure. On this basis the Operating Deficit for 2022 was £164k (2021: £384k).

Reconciliation of net expenditure to Operating Deficit

£000 Source Net expenditure before other gains (722) Statement of Financial Activity Add SSF expenditure (159) Note 13 Subtract Depreciation/ Amortisation 256 Note 7 Subtract TSIF/SWF expenditure 553 Note 12 Subtract Annual Appeal capital fundraising income (92) Note 12 Operating Deficit (164)

In order to ascertain the prior year comparator, and to assess whether the Library remains on track to achieve its strategic aim of eliminating the Operating Deficit, the revised calculation has been applied retrospectively. The results are as follows:

Revised Operating Deficit calculations 2018-2022:

2022 2021 2020 2019 2018
£000 £000 £000 £000 £000
Operating Deficit (164) (384) (404) (541) (634)

These deficits are generally lower than under the previous methodology, primarily due to the inclusion of depreciation in the previous calculation. Under the previous approach, the Operating Deficit for 2022 would be £313k.

The underlying trend for both calculations is one of improvement. The 2022 deficit is around 75% lower than it was at the start of the current Strategic Plan, having reduced by £470k between 2018 and 2022. This compares to a decrease of £532k under the previous methodology.

• 13

Reserves and Investment Policies

Reserves are defined as the part of a charity’s total funds that is freely available for use without restriction and without having to sell property needed for its operations. They are needed to cover short-term fluctuations in cash flow and to ensure that a charity can meet its obligations if revenue generated falls short of expectations. They also enable it to respond to longer-term threats and opportunities that may emerge.

The table below lays out the structure of reserves the Trustees have set taking account of the Library’s progress against its strategic plan, medium-term financial forecasts, and its obligations under the currently agreed recovery plan for the Library’s SSF pension scheme.



Tier

Purpose		 Basis of
calculation		 Amount
required
£m
Target		 Amount held
31 Mar 2022
£m
Tier 1



 Short-term
working capital
To improve the SSF
funding position
to low dependency		 90 days of operating
expenses
Committed payment
to SSF in FY2023
1.1

0.1
Total Tier 1 1.2 1.2
Tier 2




 To cover next three
years’ anticipated
operating deficit
To improve the SSF
funding position
to low dependency		 Based on operating
budget deficit for
FY2023
Payments to SSF
until 2030
 0.6
0.35
Total Tier 2 0.95 0.9
Total 2.15 2.1

The Library’s free reserves at 31 March 2022 were £2.1m (2021: £2.3m). This is slightly below the target level but within an acceptable tolerance.

In addition to free reserves, as set out in Note 12 to the accounts, the Library holds designated funds of £20.3m (2021: £20.8m), which represent the Library’s buildings (including investment properties), tangible and intangible fixed assets, and the Tom Stoppard Innovation Fund of £1.3m (2021: £1.8m), which is available to fund improvements to the Library’s operations. Free reserves and designated funds together constitute the Operating Fund of £22.4m (2021: £23.1m), which represents unrestricted funds excluding the pension reserve. The pension reserve is recognised as a surplus of £1.2m (2021: £0.4m), therefore net unrestricted funds total £23.7m (2021: £23.5m).

The Library also has restricted income funds of £1.5m (2021: £1.7m) and endowment funds of £5.9m (2021: £5.2m). Total funds amount to £31.05m (2021: £30.43m).

Further details can be found in Note 12 to the accounts on page 31 and under Organisational Information on page 43.

Review of Investment Performance

The Library’s financial investments generated income of £181k (2021: £137k) and a net gain in market value of £644k (2021: £1,034k). Interest income was negligible, but income from the Library’s investment properties totalled £54k (2021: £53k).

Nearly 99% of the Library’s invested funds are held in the Growth and Income fund managed by Newton Investment Management, with a small residual amount managed by Blackrock. The Library’s investment objective for these funds is to maintain their capital value while generating a minimum income of 3%. During the year the Newton fund achieved a positive return of 12.6% compared to a benchmark index of 9.0%. In the prior year it achieved a positive return of 24.3% compared to its benchmark of 21.8%.

The Library’s restricted and endowment funds are almost entirely held in the Growth and Income fund. At 1 April 2021, the Library’s Tier 1 and 2 reserves were mostly held in cash following decisions made in previous years regarding uncertainties around the global pandemic. It is our intention that in the long-term these reserves are matched by holdings in a mix of cash and investments that preserve capital value. To this end some £350k of additional investments were purchased during the year which represents just over a third of the Tier 2 reserve holding. The Trustees will continue to review opportunities to reinvest the Library’s current cash holdings.

We also bought an additional £1,100k of units in the Newton fund in anticipation of the receipt of the Christopher Smith legacy. Consequently, units worth £600k were transferred to the Christopher Smith Fund in January 2022.

The value of the investment funds shown at the balance sheet date is arrived at after all investment management fees have been deducted. The fees charged to funds are at either 0.5% or 0.6%.

Risk Management

The Trustees are responsible for ensuring that the Library has appropriate procedures in place to mitigate risks related to strategy, operations, finance or legal compliance. The Library

14 • TRUSTEES’ ANNUAL REPORT

maintains a Risk Register listing, by category, the key risks to which the Library is exposed and the monitoring and mitigation measures in place or under consideration. The register is kept under regular review and formally updated at least annually. The summary below explains the principal risks and uncertainties and how these are managed.

COVID-19

The Library closely monitored government guidance throughout 2021/22, with risk assessments reviewed and updated. Mandatory mask-wearing was maintained all year, and we continued to provide socially distanced spaces, enhanced cleaning regimes and increased ventilation throughout the building.

Strategy

The Library has robust arrangements to ensure that its strategy is set and implemented appropriately. These include a Strategic Plan, thorough recruitment processes for senior staff, formal Trustee recruitment and induction processes and periodic governance reviews.

Operations

Operational risks include a wide range of possible events, but the two most serious are physical disasters and enduring dissatisfaction with the service provided to members. Protection against physical disasters has been significantly enhanced in recent years through improvements to the fire alarm system and the implementation of both detection and prevention measures in relation to water ingress. A Business Continuity Plan is also in place. Meanwhile close attention is paid to the needs and expectations of members. Through induction, training and the support of our knowledgeable staff, efforts are made to ensure members make the best use of the facilities available. We also undertake regular surveys of members’ opinions and maintain a programme of communications and member events.

our unique offer and high quality service. The membership marketing strategy seeks to emphasise these points and drive both new memberships and improved the retention rates among existing members.

Membership fees are not sufficient on their own to cover the Library’s costs and must be supplemented by voluntary and investment income. The Library’s investment management activity is closely managed and monitored to safeguard funds and deliver acceptable returns. In addition, the Library has an active fundraising team which maintains and implements fundraising strategy, engaging major donors, trusts, foundations and statutory bodies to build relationships and raise income. Legacies continue to be an important source of income and future legacy pledges are welcomed and encouraged.

The Library has a defined benefit pension scheme (the Staff Superannuation Fund) which was closed to further accrual in April 2011 as a major step in mitigating the risk associated with it. The pension scheme triennial valuation as at 31 March 2019 showed a significant reduction in its deficit. The recovery plan agreed with the scheme’s Trustees requires further annual contributions from 2023 to 2030 of £450k and was designed to place the scheme in a position of low dependency on the Library as the sponsoring employer by the end of the decade.

Legal compliance

The Library regularly monitors new and proposed legislation, taking specialist advice where necessary. We are rolling out online General Data Protection Regulation (GDPR) training for all staff in 2022.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

Finance

The Library is heavily dependent on membership subscriptions to fund its operations. These provide a steady stream of core income but can be subject to attrition from a variety of causes. Fee rates are reviewed annually with reference to underlying cost inflation in order to maintain the Library’s real income and maintain service levels. We are aware that for many individual members the fees can represent a significant outlay and therefore the Library must provide value for money through

The London Library is a registered charity (number 312175), incorporated by Royal Charter dated 6 July 2004. It has its own Byelaws and the power to alter its own Rules. It has a royal Patron and Vice-Patron as well as a President and Vice-Presidents appointed by the Trustees subject to confirmation by members at the next AGM. The Patrons, President and Vice-Presidents are vital and much-valued ambassadors for the Library but play no part in its formal management.

• 15

The Library is governed by no fewer than 12 and no more than 16 Trustees, of whom all but the Chairman and Treasurer are elected by members from their number. The Trustees choose their own Chairman and Treasurer, who may or may not already be Trustees at the time of their appointment. Both hold office for up to four years but may be re-elected immediately for one further term.

Delegation of powers

The Trustees are responsible for the long-term well-being and effectiveness of the Library and make decisions on the application of its resources, the safeguarding of assets, and the determination of strategies and policies in keeping with its founding aims. The executive management of the Library is delegated to the Director who is appointed by the Trustees and takes decisions on matters such as the appointment of staff, the admission and regulation of members, the acquisition of books and other library materials, and the financial management of the Library within budgets recommended by the Finance Committee and approved by the Trustees. The Director, as Chief Executive, heads the Executive Team which also includes the Collections and Library Services Director, the Director of Finance and Resources, the Fundraising Director and the Membership Director.

In accordance with the Charter, the Trustees have delegated certain powers to specialist committees under agreed terms of reference. The committees currently in place are the Building and Facilities Committee, the Chairs’ Committee, the Collections Committee, the Development Committee, the Finance Committee, the Membership Committee and the Nominations Committee.

The Library’s specialist committees may include members with specialist skills and experience who are not current Trustees (although some may be former Trustees). In particular, the Trustees are grateful to Liz Holderness, Frank Lawton, Charles Spicer, Peter Stewart and Maria Zhivitskaya for the valuable services they provided to our committees during 2021/22. Thanks are also due to those who served as directors of the corporate Trustee of the SSF during the year: John Birdwood, Rachel Harris, Alan Saunders, Alison Sproston, Richard Templeton, Gill Turner, Keith Wallace and Maria Zhivitskaya.

Remuneration policy for Key Management Personnel

The Trustees consider that the Library’s Key Management Personnel comprise the Trustees, the Director of the Library and the Director of Finance and Resources. The Trustees give of their time freely and no Trustee received any remuneration during the year. Details of transactions with Trustees and other related parties are disclosed in Note 14 to the accounts. Details of the total employee benefits for Key Management Personnel are included in Note 15 to the accounts.

Salaries for all staff (including Executive Team members but with the exception of the Director of the Library) are based on a defined pay range for each individual job. The defined pay range is based on appropriate benchmark data and stretches 10% below and 5% above the market median for most jobs above the most junior levels. The amount of any annual pay increase is determined in consultation with the Library’s Staff Council and is based on increases in the cost of living and (from June 2023) on the achievement of individual skills development goals.

The base salary for the Director corresponds to similar posts in equivalent organisations, and as such is negotiated separately by reference to appropriate sectoral benchmarks.

Appointment and Retirement of Trustees

Trustees other than the Chairman and Treasurer serve for four years before retiring by rotation but are eligible for immediate re-election for one further four-year term. Each year, a Nominations Committee appointed by the Trustees reviews the balance of skills and experience amongst the Trustees and advertises the expertise required to the whole membership in the Library magazine and on the Library website. The Nominations Committee interviews those candidates most closely matching the requirements before recommending them to the Trustees as suitable candidates for election by members at the AGM. The Nominations Committee includes a non-trustee member of the Library with specialist skills and experience in the field of recruitment and governance.

All new Trustees are given online access to an induction manual covering the duties and responsibilities of Trustees, all aspects of the Library’s governance and management procedures, and relevant documents of record, including the minutes of meetings for the past year and recent policy and

16 • TRUSTEES’ ANNUAL REPORT

strategy papers. Introductory meetings are held with key members of staff, and support is available from the Chairman, Treasurer and other Trustees.

Subsidiary and related bodies

The London Library Trust, a linked charity (registered number 312175-1) was set up in 1952 in order to assist the Library in the achievement of its charitable objectives. The assets of the Trust are held by the Library as a restricted fund and the Library is its sole trustee. The Library also has a wholly-owned subsidiary company, London Library Enterprises Ltd, which has no assets and has not traded since incorporation.

Along with Girton College, Cambridge, the Library is a joint beneficiary of Mrs R M Chambers’ Settlement, which owns and manages an estate of freehold properties in Ealing. Each of the beneficiaries appoints a trustee to manage the Settlement’s affairs and property, and receives grants in equal shares in respect of the net proceeds of property sales and rentals. The RM Chambers’ Settlement had an immaterial impact on The London Library’s financial statements this year.

Fundraising

The day-to-day management of all income generation is delegated to the Executive Team, who are accountable to the Trustees. Fundraising is carried out in compliance with the Library’s ethical fundraising policies, which emphasise best practice and the respect with which donors and prospective donors are treated when making approaches for donations. The Library is not bound by any undertaking to be compliant with any regulatory scheme, however, the charity is registered with the Fundraising Regulator and complies with the relevant codes of practice. The Library reports any fundraising complaints received to the Fundraising Regulator on an annual basis. No complaints were received during the year in relation to fundraising activities.

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 (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & 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 its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Royal Charter. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustees on 17 October 2022 and signed on their behalf by

Sir Howard Davies CHAIRMAN

Philip Broadley FCA TREASURER

• 17 • 17• 17

AUDITOR’S REPORT

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE LONDON LIBRARY

Opinion

We have audited the financial statements of The London Library (the ‘Charity’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005, which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’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 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. 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 (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

18 • AUDITOR’S REPORT

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ Responsibilities, the Trustees are responsible for the preparation of the financial statements which 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.

Auditor’s responsibilities for the audit of of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted 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.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: frc.org.uk/auditorsresponsibilities . This description forms part of our Auditor’s Report.

Use of this report

This report is made solely to the Charity’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 anyone other than the Charity and its Trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

MHA MacIntyre Hudson

Statutory Auditor London, United Kingdom

Date: 21 October 2022

MHA MacIntyre Hudson are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

• 19 • 19

ACCOUNTS

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 March 2022

Unrestricted Restricted Endowment Total Total
Funds Funds Funds Funds Funds
2022 2022 2022 2022 2021
Note £ £ £ £
£
INCOME AND ENDOWMENTS
FROM:
Donations and legacies _2_695,793 218,798 - 914,591 1,999,047
Charitable activities _5_2,839,615 - - 2,839,615 2,665,126
Trading activities _3_54,401 - - 54,401 34,835
Investments _4_93,513 142,042 - 235,555 196,100
TOTAL 3,683,322 360,840 - 4,044,162 4,895,108
EXPENDITURE ON:
Raising funds _6_772,091 - - 772,091 697,834
Charitable activities _6_3,755,290 239,139 - 3,994,429 3,533,489
TOTAL 4,527,381 239,139 - 4,766,520 4,231,323
NET INCOME/(EXPENDITURE)
before investment (losses)/gains (844,059) 121,701 - (722,358) 663,785
Net gains / (losses) on investments _8_97,801 (1,851) 547,709 643,659 1,034,165
NET INCOME/(EXPENDITURE) (746,258) 119,850 547,709 (78,699) 1,697,950
Transfers between funds _12_229,766 (341,669) 111,903 - -
OTHER RECOGNISED GAINS AND
LOSSES:
Actuarial gains on defined benefit
pension scheme _13_706,000 - - 706,000 711,000
NET MOVEMENT IN FUNDS 189,508 (221,819) 659,612 627,301 2,408,950
FUNDS AT START OF YEAR _12, 19_23,491,973 1,722,895 5,212,015 30,426,883 28,017,933
FUNDS AT END OF YEAR 1223,681,481 1,501,076 5,871,627 31,054,184 30,426,883

The notes on pages 22 to 38 form part of these accounts.

20 • ACCOUNTS

Note
FIXED ASSETS
Tangible fixed assets_7.1_
Intangible fixed assets_7.2_
Investment properties_8.1_
Financial investments_8.2_
TOTAL FIXED ASSETS
CURRENT ASSETS
Debtors and prepayments_10_
Bank balances and cash in hand

LIABILITIES
Creditors: amounts due within one year_11_
NET CURRENT ASSETS
TOTAL ASSETSLESS
CURRENT LIABILITIES
Creditors: amounts due after more than one year_11_
NET ASSETSexcluding pensions asset
Pension asset_13_
TOTAL NET ASSETS
Representing
RESTRICTED INCOME FUNDS12
ENDOWMENT FUNDS12
UNRESTRICTED FUNDS
excluding pension asset
Pensions reserve13
Total unrestricted funds
TOTAL CHARITY FUNDS12
BALANCE SHEET
~~as at 31 March 2022~~		 31 March
31 March
2022
2021
£
£
17,876,801_17,848,849_
117,714_132,429_
1,018,182_1,018,182_
7,494,640_5,398,653_
26,507,337_24,398,113_
1,927,427_1,902,807_
2,563,483_4,888,500_
4,490,910_6,791,307_
(583,765) (514,914)
3,907,145_6,276,393_
30,414,482_30,674,506_
(603,298)(625,623)
29,811,184_30,048,883_
1,243,000_378,000_
31,054,184 30,426,883
1,501,076_1,722,895_
5,871,627 5,212,015
22,438,481_23,113,973_
1,243,000_378,000_
23,681,481_23,491,973_
31,054,184 30,426,883

Approved and authorised for issue by the Trustees on 17 October 2022 and signed on their behalf by

Sir Howard Davies Philip Broadley FCA CHAIRMAN TREASURER

The notes on pages 22 to 38 form part of these accounts.

• 21

STATEMENT OF CASH FLOWS for the year ended 31 March 2022

2022
£
Net cash flow from operating activities18-
Cash flows from investing activities
Dividends, interest and rent from investments 235,555
Payments to acquire tangible fixed assets (269,800)
Proceeds from sale of investments -
Payments to acquire investments (1,450,000)
Net cash flow from investing activities-
(Decrease)/increase in cash and cash equivalents -
Cash and cash equivalents at start of year -
Cash and cash equivalents at end of year -
Analysis of cash and cash equivalents
Cash in hand_-
Total cash and cash equivalents -
_Note		 2022
£
(840,772)
-
-
-
-
(1,484,245)
(2,325,017)
4,888,500
2,563,483
2,563,483
2,563,483		 2021
£
-
196,100
(237,491)
2,723,847
-
-
-
-
-
-
-		 2021
£
(174,338)
-
-
-
-
2,682,456
2,508,118
2,380,382
4,888,500
4,888,500
4,888,500

Other than cash and cash equivalents, The London Library does not have any net debt. The notes on pages 22 to 38 form part of these accounts.

22 • ACCOUNTS22 • TRUSTEES’ ANNUAL REPORT

NOTES TO THE ACCOUNTS

1 ACCOUNTING POLICIES

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The aim and use of each restricted fund is set out in Note 12.

The London Library is a registered charity with the Charity Commission in England and Wales (number 312175), and is incorporated by Royal Charter. It constitutes a public benefit entity as defined by FRS 102. The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP, effective 1 January 2019) which is applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011, UK Generally Accepted Accounting Practice, and the Library’s Royal Charter.

The accounts are prepared in sterling which is the functional and presentational currency of the Charity, rounded to the nearest pound. The registered office and principal place of business is as stated on page 2.

The significant accounting policies applied in the preparation of these accounts are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Preparation of the accounts on a going concern basis The accounts are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The Trustees consider that this remains an appropriate basis for the preparation of the accounts as no material uncertainties exist which would threaten the going concern status. The Library is expected to continue in operational existence for the foreseeable future, based on the strategic plans in place, the related financial budgets and forecasts, and its satisfactory reserves position, as detailed in the Trustees’ Annual Report and in Note 12.

The Trustees have given particular consideration to the continuing effects of the COVID-19 pandemic on its operations and financial position.

Trustees consider that income from membership, supported by investment income and the Library’s reserves, will be sufficient to enable the Library to continue as a going concern for the foreseeable future.

(c) Fund accounting

The Charity’s funds are shown in Note 12.

Unrestricted funds are those available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes.

The Charity’s Operating Fund comprises the designated funds together with the free reserves (which exclude the pension reserve). Donations and legacies which are not restricted for any other purpose are credited to the Operating Fund.

Endowment funds represent those donations and gifts which have been given to the Library for the purpose of providing a permanent asset base from which investment income is generated. Depending on the terms of the gift, this income may be restricted or unrestricted as detailed in Note 12.

Gains and losses arising from the revaluation of investments are allocated to the funds in proportion to the opening carrying value of the fund class.

(d) Income

All incoming resources are included in the Statement of Financial Activities (SOFA) when the Charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Donations are recognised on receipt or, if earlier, when the Charity has certainty of the amounts and settlement date. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled.

Legacies are recognised when the Charity has entitlement to the legacy (confirmed through the granting of probate), its receipt is probable and the value of the legacy can be measured with reasonable accuracy.

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, fair value can be measured reliably and is material, and when the Charity has control over the item. Fair value is determined on the basis of the value of the gift to the Charity, for example, by reference to the amount the Charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

No amount is included in the accounts for volunteer time in line with the Charities SORP (FRS 102). Further detail about volunteers is given in the Trustees’ Annual Report.

Annual membership subscriptions are recorded in full in the year in which they become due. Life membership fees have

• 23

been credited to the SOFA over a period of 10 years for new memberships up to 31 March 2016 and over 15 years for new memberships between 1 April 2016 and 31 March 2017 and over 25 years from 1 April 2017.

Income from trading activities includes income earned from venue hire and from merchandising sales, and is recognised in the period the event or sale takes place.

Investment income is earned through holding assets for investment purposes such as listed investments, gilts and property. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. Dividend and rental income is recognised as the Charity’s right to receive payment is established. Accrued interest on gilt securities, where there is no intention to sell the investment before the interest is due, is recognised in the SOFA as a component of investment income, as it is not part of the underlying fair value of the related investment.

Income from Government Grants is recognised using the accrual model basis. Grant Income is recognised when there is reasonable assurance that a) any conditions attached to receiving the grant will be met and b) the grants will be received. Grants relating to revenue are recognised in the income over the periods in which related costs are incurred for which the grant is intended to compensate.

(e) Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the headings shown in Note 6.

The Charity is registered for VAT. Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

(f) Support costs

Support costs are those that assist the work of the Charity but do not directly represent charitable activities and include IT costs, administration and governance costs. Support costs are all allocated to charitable activities as shown in Note 6. Governance costs comprise those costs which are related to the strategic management of the Charity and compliance, and include legal, audit and other professional fees, together with an allocation (20%) of administration costs.

(g) Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes those directly attributable to making the asset capable of operating as intended.

Assets which are separately identifiable and cost less than £1,000 are not capitalised, other than where purchased as a group of assets or in the case of information and communications technology where a lower threshold of £100 applies.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

ch asset on a systematic basis
s follows:		 over its expected u
Freehold land
 Not depreciated
Freehold property
and improvements
 0.5% per annum
Plant and equipment
 5% per annum
Furniture and fittings
 4% per annum
Information and
communications technology 20% per annum

The depreciation rates take into account the nature and use of the Library’s assets and the continuous maintenance programmes to which they are subject.

(h) Intangible fixed assets

Intangible fixed assets are non-monetary fixed assets that do not have physical substance but are identifiable and are controlled by the Library through custody or legal rights. An intangible asset is recognised when it is separable or arises from contractual or other legal rights and if it is probable that its expected future economic benefits will flow to the Library, and if its cost or value can be measured reliably. Intangible fixed assets costing more than £1,000 are capitalised.

Intangible assets are measured initially at cost, including the cost of purchased software and the direct costs associated with its implementation, and subsequently at cost less impairment and less any accumulated amortisation. The residual value of intangible fixed assets is nil when calculating the charge for amortisation unless reliable evidence exists to the contrary. Amortisation of intangible fixed assets is charged as an expense to the relevant statement of financial activities (SoFA) category reflecting the use of the asset.

Intangible assets are amortised on a straight-line basis over their useful economic lives. If the useful life cannot be estimated reliably it is presumed to be no more than ten years. Amortisation commences on development expenditure when an intangible asset is available for use. The amortisation rates used are as follows:

Library management system: 10% per annum E-book perpetual licences: 10% per annum

Intangible assets are only reviewed for impairment if there are indicators that the asset may be impaired.

24 • ACCOUNTS

(i) Heritage assets

The Charity’s collection is made up over one million items which have accumulated over its lifetime; further details are included in the Trustees’ Annual Report and in Note 9. The collection is insured for £26 million, however it is not included on the Charity’s balance sheet on the basis that reliable information on its cost (if purchased) or valuation (if donated) is not available and/or the cost of providing such information significantly outweighs any benefit to the users of these accounts. Additionally, the collection is fundamentally made up of working resources in constant use by members, and subject to fluctuations in condition that further impede our ability to value the items with any degree of accuracy. The Library also owns some works of art associated with the Library and held for their historical, artistic, and culturally significant qualities. No value is placed on these items in the financial statements.

Should the Library have acquisitions or donations of heritage assets that are material, and for which cost or valuation can be measured reliably, these items will be included on the balance sheet and subsequently depreciated. Fair values for donated assets will be estimated by reference to market prices, where available.

(j) Investment properties Investment properties are measured at fair value at each reporting date. Fair value is attributed on the basis of a yield on the rental income, which is based on surveyors’ estimates. No value is attributed to the underlying land. The Trustees review this valuation regularly, with any changes in fair value being recognised in ‘net gains / (losses) on investments’ in the SOFA. Sales proceeds from lease extensions are treated as disposals.

(k) Fixed asset investments

Fixed asset investments in quoted shares, traded bonds and similar investments are measured initially at cost and subsequently at fair value (the bid price) at the reporting date with changes recognised in ‘net gains / (losses) on investments’ in the SOFA. Investments are held in pooled vehicles.

(l) Debtors receivable and creditors payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(m) Provisions

Provisions are recognised when the Charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between sterling and the foreign currency at the date of the transaction. Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.

The Charity offers a Group Personal Pension Plan (a defined contribution scheme) through Scottish Widows for the benefit of its employees. Employer contributions are charged through the SOFA as they become payable. The liability and expense are allocated based on the nature of the staff member’s role and are allocated against unrestricted funds.

The Charity also operates the Library’s Staff Superannuation Fund (SSF), a defined benefit scheme, which was closed to new entrants and to future accrual on 1 April 2011. Pension plan assets are estimated at fair value and the defined benefit obligation is estimated on an actuarial basis using methodology in accordance with FRS 102. The net change in the value of the resulting defined benefit asset or liability is recognised as the cost of the defined benefit plan during the period. A net asset is recognised where the fair value of the plan’s assets exceed its obligations, although the asset is not regarded as being available to the Library. Further details are provided in Note 13.

The Charity is an exempt Charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010, hence is able to take advantage of applicable Charity tax exemptions for UK corporation tax purposes.

The Library has a subsidiary trust, The London Library Trust, of which it is the sole Trustee and which has objects narrower than those of the Library itself. The Trust is dealt with in these accounts as a restricted fund. The Library also holds 100% of the share capital of London Library Enterprises Limited, registered in England and Wales (number 08229985). The company has nil net assets and has not traded since it was incorporated in September 2012, hence it is not consolidated in these accounts.

• 25

(s) Judgements and key sources of estimation uncertainty

The following judgements have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the accounts:

(t) Financial instruments

The Charity only holds basic financial instruments. The financial assets and financial liabilities of the charity and their measurement basis are as follows:

Financial Assets – Trade and other debtors and accrued income are basic financial instruments and are debt instruments measured at amortised cost as detailed in Note 10. Prepayments are not financial instruments.

Investments – All investments are classified as basic financial instruments and held at their fair value.

Cash at bank – is classified as a basic financial instrument and is measured at face value.

Financial Liabilities – Trade creditors, accruals and other creditors will be classified as financial instruments, and are measured at amortised cost as detailed in Note 11. Taxation and social security are not included in the financial instruments disclosure. Deferred income and deferred life membership fees are not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver charitable services rather than cash or another financial instrument.

(u) Employee benefits

When employees have rendered service to the Charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

No termination payments or other amounts have been spent in the current year on employees leaving the service of the Library (2021: nil).

(v) Stock

Stock is valued at the lower of cost or net realisable value. Stock relates to Library merchandise.

2 DONATIONS AND LEGACIES



Unrestricted funds
Donations
Legacies
Total unrestricted funds
Restricted funds
Development Appeal Fund
Christopher Smith Fund
Emerging Writers Programme and supported memberships
Annual Appeal and other restricted donations
Grants received
Total restricted funds
Endowment funds
Donations for endowments
Total income from donations and legacies		 2022
£
296,220
399,573
695,793
3,242
-
117,065
92,322
6,169
218,798
-
914,591		 2021
£
291,649
230,929
522,578
2,682
1,100,000
43,488
212,475
117,824
1,476,469
-
1,999,047

26 • ACCOUNTS

4 INVESTMENT INCOME
2022
£
Income from listed investments UK 181,445
Outside UK -
Total income from listed investments 181,445
Interest from deposits 110
Total income from investment portfolio 181,555
Income from property 54,000
Total investment income 235,555
As per Accounting Policy 1(d), investment income for 2022 is reported net of investment management costs.
2022
£
Events and venue hire 39,857
Merchandising sales 3,128
London Library Magazine income 11,416
Total income from trading activities 54,401
3 TRADING ACTIVITIES
5 INCOME FROM CHARITABLE ACTIVITIES
2022
£
Annual membership fees 2,707,145
Life membership fees 91,377
Temporary overseas membership fees 548
Reference ticket fees 920
Talks and Library events 28,543
Inter-Library loan fees 11,082
Total income from charitable activities 2,839,615
6 EXPENDITURE
6.1 Raising funds
2022
2022
2022
2021
2021
Staff costs
Other costs
Total
Staff costsOther costs

£
£
£
£
£
Fundraising 258,548 70,741 329,289_226,974_ 61,882
Marketing and communications 252,234 190,568 442,802_231,62_7_144,176_
Investment management fees - - - -33,175
Total 510,782 261,309 772,091458,601239,233		 4 INVESTMENT INCOME
2022
£
Income from listed investments UK 181,445
Outside UK -
Total income from listed investments 181,445
Interest from deposits 110
Total income from investment portfolio 181,555
Income from property 54,000
Total investment income 235,555
As per Accounting Policy 1(d), investment income for 2022 is reported net of investment management costs.
2022
£
Events and venue hire 39,857
Merchandising sales 3,128
London Library Magazine income 11,416
Total income from trading activities 54,401
3 TRADING ACTIVITIES
5 INCOME FROM CHARITABLE ACTIVITIES
2022
£
Annual membership fees 2,707,145
Life membership fees 91,377
Temporary overseas membership fees 548
Reference ticket fees 920
Talks and Library events 28,543
Inter-Library loan fees 11,082
Total income from charitable activities 2,839,615
6 EXPENDITURE
6.1 Raising funds
2022
2022
2022
2021
2021
Staff costs
Other costs
Total
Staff costsOther costs

£
£
£
£
£
Fundraising 258,548 70,741 329,289_226,974_ 61,882
Marketing and communications 252,234 190,568 442,802_231,62_7_144,176_
Investment management fees - - - -33,175
Total 510,782 261,309 772,091458,601239,233		 2021
£
137,471
-
137,471
5,229
2021
£
16,018
11,574
7,243
34,835
142,700
53,400
196,100
£
2021

2,553,327
104,449
810
-
-
6,540
2,665,126
2021
Total
£
33,175
288,856
375,803
510,782 261,309 772,091458,601239,233 697,834

As per accounting Policy 1(d), investment income has been reported net of investment management fees as these costs cannot be accurately determined. Fees for the year are affected by the level of purchases and sales of investment units, but investment income is received net of fees and no information is available about the value of such charges. Based solely on the year-end value of investments, it is estimated that the fees for 2022 were £44,885 (2021: £33,175).

• 27

6 EXPENDITURE continued

6.2 Charitable activities

6.2 Charitable activities
2022 2022 2022 2021
2021		 2021
Staff costs Other costs Total Staff costsOther costs Total
Library operations
 £ £ £ £
£		 £
Building and facilities
management 199,423 720,036 919,459 207,689 848,346 1,056,035
Member services 647,569 - 647,569 597,054 - 597,054
Bibliographic services 363,086 - 363,086 174,770 23,101 197,871
Acquisitions 129,153 261,034 390,187 146,449 248,242 394,691
Collection care 184,388 59,381 243,769 260,855 38,712 299,567
Subtotal 1,523,619 1,040,451 2,564,070 1,386,817 1,158,401 2,545,218
Support costs
Information technology 139,265 378,317 517,582 79,067 197,700 276,767
Administration 590,658 106,432 697,090 478,959 78,919 557,878
Governance 119,304 96,383 215,687 80,540 73,086 153,626
Subtotal 849,227 581,132 1,430,359 638,566 349,705 988,271
Total charitable activities 2,372,846 1,621,583 3,994,429 2,025,383 1,508,106 3,533,489
Total expenditure 2,883,628 1,882,892 4,766,520 2,483,984 1,747,339 4,231,323

The Library’s charitable object is the advancement of education, learning and knowledge by the provision and maintenance in London of a library embracing the arts and humanities. The running of The London Library is a single activity to which various specialist departments contribute, rather than a set of independent activities. The costs attributable to these specialist departments are set out in the table above. Further details can be found in the Trustees’ Annual Report.

The Library’s Administration department comprises finance and human resources staff as well as the Director and Finance Director, who are members of the Executive Team. 20% of the expenditure incurred by this department is considered attributable to governance and is allocated accordingly.

6.3 Governance costs

2022 2022 2022 2021 2021 2021
Staff costs Other costs Total Staff costs Other costs Total

£		 £ £ £ £ £
Administration allocation 119,304 28,859 148,163 80,540 19,730 100,270
Audit fees - 15,000 15,000 - 18,650 18,650
Legal and professional fees - 52,524 52,524 - 34,706 34,706
Total 119,304 96,383 215,687 80,540 73,086 153,626

The statutory audit fee for 2022 was £15,000 (2021: £16,350). The auditors provided no non-audit related services (2021: £2,680).

As explained in Note 9, the capital value of the Library’s collection is not included in the accounts, but the cost of acquisitions is charged against income in the year that they are made. The table on the following page summarises these acquisitions over the last five financial years. The acquisitions comprise monographs and periodicals but not digital or online materials. In 2022, the Library spent £85,770 (2021:£103,742) on digital and online material.

28 • ACCOUNTS

Acquisitions
Five-year expenditure 2022 2021 2020 2019 2018
excluding digital material £ £ £ £ £
Purchases 161,388 1_44,879_ 205,970 248,804 251,030
Donations 8,600 4,316 9,076 4,675
9,139
Total additions 169,988 149,195 215,046 253,479 260,169
Items added to current catalogue 3,561 3,786 4,964 5,619 5,812
7 TANGIBLE AND INTANGIBLE FIXED ASSETS
7.1 Tangible fixed assets
Freehold Plant and Furniture and Information
Property Equipment Fittings Technology Total
£ £ £ £
£
Cost
At 1 April 2021 17,969,031 2,123,915 448,246 344,396 20,885,588
Additions 242,314 - - 27,486 269,800
Disposals - - -
-
-
At 31 March 2022 18,211,345 2,123,915 448,246 371,882 21,155,388
Depreciation
At 1 April 2021 1,285,763 1,313,863 169,469 267,644 3,036,739
Charge for the year 83,764 108,125 17,929 32,030 241,848
Disposals - - - - -
At 31 March 2022 1,369,527 1,421,988 187,398 299,674 3,278,587
Net book values
At 1 April 2021 16,683,268 810,052 278,777 76,752 17,848,849
At 31 March 2022 16,841,818 701,927 260,848 72,208 17,876,801
7.2 Intangible fixed assets
Information
Technology
£
Cost
At 1 April 2021 147,143
Additions -
At 31 March 2022 147,143
Amortisation
At 1 April 2021 14,714
Charge for the year 14,715
At 31 March 2021 29,429
Net book values
At 1 April 2021 132,429
At 31 March 2022 117,714

• 29

8
 FIXED ASSET INVESTMENTS
8.1 Investment properties 2022 2021
£ £
Market value at beginning of year 1,018,182
1,018,182
Sale proceeds - -
Revaluation gains
 -
-
Market value at end of year 1,018,182 1,018,182
Investment properties comprise a café and a commercial art gallery rented to tenants on short leases. A review of the yield on rental
income was carried out in 2018-19 by professional surveyors and the market value of the two properties was revised accordingly.
Despite the uncertainty caused by the global pandemic, the Trustees consider these valuations remain reasonable for the current
year. The Library also owns the freehold of six leasehold flats. All these properties are contiguous to the Library’s occupied property
and share some structure and services with it.
8.2 Financial investments
2022 2021
Market Value: £ £
Market value at beginning of year 5,398,653 7,088,334
Cost of purchases 1,450,000 -
Disposals - (2,723,846)
Dividend accumulation 2,328 -
Revaluation gains / (losses) 643,659
1,034,165
Market value at end of year 7,494,640 5,398,653
All of the financial investments above are listed in the UK.

9 HERITAGE ASSETS

The Library’s collection comprises over one million publications including books, journals, newspapers and other items. We seek to acquire newly-published works of lasting value, and older materials which enhance coverage of particular areas. We obtain many works via donation from our members, and the Library may also accept important items at risk of loss to scholars through the dispersal of other collections. The vast majority of books in the collection are available for loan, but some 40,000 of the oldest, rarest and most vulnerable items are secured within closed stacks and available for supervised consultation.

The Library’s collection is fundamentally a working one which is intended to be used by readers, writers and researchers. There is a compromise between the needs of readers and those of the books themselves, as well as the constraints imposed by housing the collection in a Grade II listed building. The Collection Care team is responsible for ensuring that the collection is stored, maintained and preserved in a manner appropriate to this objective, including tagging, binding and re-binding of books as required. Given these factors, as well as the fact that the average cost of individual assets is usually well below the capitalisation threshold, and most importantly the expense and difficulty of obtaining detailed valuations of the items in the collection, the Trustees believe it is not appropriate to place a capital value on the printed material held by the Library.

The Library also holds a few works of art retained for their historical, artistic, and culturally significant qualities. These are mostly portraits or busts of significant former Library patrons or benefactors. No value is placed on these items in the financial statements.

30 • ACCOUNTS30 • TRUSTEES’ ANNUAL REPORT

10 DEBTORS

10 DEBTORS
11 CREDITORS
Amounts due within one year:


Trade creditors
Taxes and social security
Other creditors
Accruals and deferred income
Life membership fees deferred
Total
Amounts due after more than one year:


Life membership fees deferred
Total


Trade debtors
Other debtors
Stock
Prepayments and accrued income
Total		 2022 2021
££
36,778_27,846_
184,200_168,185_
5,584_10,909_
1,700,865
1,695,867
1,927,4271,902,807












20222021
££
166,870_206,693_
64,739_53,878_
61,186
214,693
76,277_89,129_
27,125
138,089
583,765
514,914

20222021
££
603,298_625,623_
603,298625,623

Income from life membership fees has been recognised over 10 years from the year of receipt for new memberships up to 31 March 2016, over 15 years for new memberships between 1 April 2016 and 31 March 2017 and over 25 years for new memberships from 1 April 2017. The Trustees keep this policy under review in the light of operational experience and general trends in life expectancy.

The movements in other deferred income, being comprised of rental and event income, are set out below:

The movements in other deferred income, being comprised of rental and event income, are set out below:
2022 2021
£ £
Deferred income at start of year 714,752 737,812
Life fees received in year 56,200
81,390
Income recognised in year (91,377) (104,450)
Deferred income at end of year 679,575 714,752
To be recognised within one year 76,277 89,129
To be recognised after more than one year 603,298 625,623
Total as above 679,575 714,752
The movements in other deferred income, being comprised of rental and event income, are set out below:
2022 2021
£ £
Deferred income at start of year 12,054 8,952
Amount released to income in the year (12,054)
(8,952)
Amount deferred in the year 6,500 12,054
Deferred income at the end of year 6,500 12,054

• 31

12 ANALYSIS OF FUNDS
















 _B/fwd_IncomeExpenditureRevaluationsTransfersC/fwd
01 April 21 2022 2022 2022 2022 31 March 22
£ £ £ £ £ £
Unrestricted funds
Designated funds
Tangible fixed assets_17,848,849_- (241,848) - 269,800
Intangible fixed assets_132,429_- (14,715) - -
Investment properties_1,018,182_54,000 - - (54,000)
Tom Stoppard Innovation Fund_1,794,340_- (518,495) -
-
Total designated funds20,793,800 54,000 (775,058)-215,800 20,288,542
Free reserves 2,320,173_3,470,322 (3,752,323) 97,801 13,966 2,149,939
Operating Fund23,113,973 3,524,322 (4,527,381) 97,801 229,766
22,438,481
Pension reserve_378,000_159,000 - 706,000 - 1,243,000
Total unrestricted funds23,491,973 3,683,322 (4,527,381) 803,801 229,766 23,681,481
Restricted funds
Christopher Smith Fund_1,100,000_2,674 - (5,775) - 1,096,899
Development Appeal Fund_279,473_3,241 - - (118,354) 164,360
The London Library Trust_122,199_5,881 - - (74,319) 53,761
Emerging Writers Programme_76,893_111,185 (64,628) - (67,124) 56,326
Staff Benefit Fund_64,589_1,149 (34,745) 3,924 - 34,917
Drue Heinz Literary Fund_181_134,416 (134,597) - - -
Julio and Maria Marta Núñez
Memorial Fund_12,593_3,803 - - (16,396) -
Library Fund Annual Appeal_65,476_91,794 - - (65,476) 91,794
Other restricted funds_1,491_6,697 (5,169) - - 3,019
Total restricted funds1,722,895 360,840 (239,139) (1,851) (341,669)
Endowment funds
Drue Heinz Literary Fund_4,666,846- - 491,446 110,174 5,268,466
Jacqueline Golden Endowment_404,123_- - 42,358 7,615 454,096
Julio and Maria Marta Núñez
Memorial Fund_141,046_- - 13,905 (5,886) 149,065
1,501,076
Total endowment funds5,212,015 - - 547,709 111,903 5,871,627
Total funds30,426,883 4,044,162 (4,766,520) 1,349,659 - 31,054,184
117,714
1,018,182
1,275,845
17,876,801

32 • ACCOUNTS

12 ANALYSIS OF FUNDS continued

Net assets by fund
Tangible fixed assets
Intangible fixed assets
Investment properties
Financial investments
Debtors and prepayments
Bank balances and cash in hand
Creditors: due within one year
Creditors: due after more than one year
Pension asset
Net assets		 Unrestricted
Restricted
Endowment
Total
2022
2022
2022
2022
£
£
£
£
17,876,801 - -
17,876,801
117,714 - -
117,714
1,018,182 - - 1,018,182
981,299 641,714 5,871,627 7,494,640
1,427,427 500,000 - 1,927,427
2,204,121 359,362 - 2,563,483
(583,765) - -
(583,765)
(603,298) - -
(603,298)
1,243,000 - - 1,243,000
23,681,481 1,501,076 5,871,627
31,054,184

Transfers

Transfers from free or restricted reserves to tangible fixed assets represent capital expenditure, as shown in Note 7 above. Transfers from investment properties to free reserves represents the rental income from the properties, as shown in Note 8. Transfers from restricted funds to free reserves reflect the discharge of the conditions applicable to the respective funds. Transfers between restricted funds are detailed below.

Unrestricted funds

Unrestricted funds comprise free reserves, designated funds and the pension reserve.

Free reserves are funds which are not subject to any legal or operational restriction as to their application. Designated funds are not subject to any externally imposed restriction but have been set aside for specific purposes and thus are not immediately available to be spent as income. They represent tangible fixed assets used in the business (Note 7) and investment properties (Note 8) and the Tom Stoppard Innovation Fund (TSIF) which was created in 2018 to mark the standing down of Sir Tom Stoppard as the Library’s President. The TSIF funds innovative ways to get the most from the Library building and collection, and to harness new technologies and improved systems.

Free reserves and designated funds together comprise the Operating Fund, which derives from the accumulated net surplus since inception.

The pension reserve represents the net actuarial surplus on the defined benefit pension scheme, calculated on the basis set out in Note 13.

Restricted funds

The Christopher Smith Fund was established in 2021 upon the recognition of a legacy from the late Christopher Smith, a life member. Income and capital from the fund are used to support the care and preservation of books and the fund is expected to be

used within 20 years of the date of its establishment. The first £600k associated with this fund was received in January 2022 and we await receipt of the remaining amount. No charges have been made to the fund in the year.

The Development Appeal Fund (DAF) was launched in 2004 to meet the costs of the Library’s purchase and fit out of T S Eliot House. The Fund is used for development works to the Library. This year the DAF part-funded (by way of transfer to tangible fixed assets) the refurbishment of the Library’s ‘Red Staircase’ toilets, with the remainder funded by The Library Fund Annual Appeal (see page 33) .

Funds held within The London Library Trust (LLT) are restricted for the provision of Supported Memberships including subsidised schools membership. Since April 2012 the assets of LLT, a subsidiary linked charity (registered number 312175-1), have been held as a restricted fund within the Library which is its sole trustee. Transfers are made to unrestricted funds equivalent to the value of the subsidised portion of supported memberships granted in the year. Where the Library receives other donations from members and supporters for supported memberships and the subsidised schools programme, rather than report these on a separate line they are combined with the funds of The London Library Trust for efficiency of reporting.

The Emerging Writers Programme (EWP) supports the development of new writing talent, granting up to 40 writers, selected by a panel of judges, a minimum of one year’s free membership of The London Library and providing them with a programme of masterclasses, literary networking opportunities and peer support. The programme is made possible by philanthropic donations including income from the Julio and Maria Marta Núñez Memorial Fund (see page 33) . The EWP fund is intended to meet the cost of providing free Library memberships to participants, however

• 33

this cost has not previously been charged against the fund, therefore a transfer was made in the year to account for the costs of membership of all participants since the inception of the scheme.

The Staff Benefit Fund has been built up from gifts and investment income. It is used to make discretionary payments to or on behalf of staff in cases of need or hardship. This year, in recognition of the extraordinary circumstances around the COVID-19 pandemic, a wellbeing payment of £500 per person was made to all staff from this fund.

The Drue Heinz Literary Fund and the Julio and Maria Marta Núñez Memorial Fund represent the investment income generated from the corresponding invested endowment funds detailed below. The Julio and Maria Marta Núñez Memorial Fund supports the cost of membership for those participants in the EWP who are aged between 18 and 30. A transfer has been made between the Julio and Maria Marta Núñez Memorial Fund and the EWP fund to account for this.

The Library Fund Annual Appeal represents income generously received from the membership to fund a specific project each year. The brought forward funds were used to part fund the sympathetic refurbishment of the Library’s ‘Red Staircase’ toilet facilities with the remaining costs of this project met from the DAF. As the works have been capitalised as part of the Library’s fixed assets, a transfer to the tangible fixed assets fund has been made this year. The 2021/22 appeal raised funds to install energy efficient LED lighting in the stacks, and work will begin on this in 2022/23.

Other restricted funds comprise grants, donations and legacies received for specific purposes.

Endowment Funds

The Julio and Maria Marta Núñez Memorial Fund, established in 2015-16 is to provide financial support to applicants for Library membership aged between 18 and 30, particularly those from Latin America. It can also be used to assist young authors. In practice the fund achieves these purposes by supporting the costs of membership for the younger participants in the Emerging Writers Programme.

13 PENSION ARRANGEMENTS

(a) Group Personal Pension Plan (GPPP)

The Group Personal Pension Plan is provided by Scottish Widows and commenced on 1 April 2011 when the Library’s defined benefit scheme closed to further accrual. Costs for the year ended 31 March 2022 totalled £108,663 (2021: £97,856).

(b) Staff Superannuation Fund of The London Library (SSF)

The SSF is a defined benefit scheme established under a definitive trust deed, which closed to new entrants and to further accrual on 1 April 2011. The assets of the scheme are held independently from those of the Library, and are vested in five named Trustee Directors, including two nominated by members of staff.

In the year ended 31 March 2022, the contribution by the Library was £150,000 (2021: £265,000), in accordance with the recommendations of the Fund’s actuary. With effect from 1 April 2011 scheme expenses are paid direct by The London Library and the contribution therefore relates purely to reduction in past service deficits. The expected contribution for the financial year ending 31 March 2023 is £100,000.

A valuation of the Fund has been prepared as at 31 March 2022 in accordance with FRS102. The major assumptions used are as follows:

The Drue Heinz Literary Fund comprises gifts made by the 2022 2021 Drue Heinz Foundation to provide an endowment yielding per annum per annum investment income that is used to ‘help meet the annual budget Discount rate 2.6% 2.0% of The London Library for acquisition of books and periodicals’. Price inflation (RPI) 3.7% 3.3% As such the income from it is treated as restricted and is fully Price inflation (CPI) 3.0% 2.5% spent each year to offset the cost of book purchases. Increases to pensionable pay N/A N/A The Jacqueline Golden endowment was established by a gift Increases to pensions in payment: from Lewis Golden, a distinguished former Treasurer and Before 30/4/2007 (RPI capped at 5%) 3.4% 3.1% Chairman of the Library, in memory of his late wife Jacqueline, From 1/5/2007 (RPI capped at 2.5%) 2.2% 2.1% and has been supplemented by subsequent donations. The income from this endowment is available for the general purposes of GMP accrued after 6/4/1988 (CPI capped at 3%) 2.2% the Library and included within free reserves. 2.0%

34 • ACCOUNT34 • TRUSTEES’ ANNUAL REPORT

13 PENSION ARRANGEMENTS continued

Increases to pensions in deferment (employed members):

[2022] [2021] Non-GMP earned before 6/4/2009 (RPI capped at 5%) 3.7% per annum 3.3% per annum Non-GMP earned after 6/4/2009 (RPI capped at 2.5%) 2.5% per annum 2.5% per annum GMP Fixed rates Fixed rate s

Increases to pensions in deferment (non-employed members): Non-GMP earned before 6/4/2009 (CPI capped at 5%) 3.0% per annum 2.5% per annum Non-GMP earned after 6/4/2009 (CPI capped at 2.5%) 2.5% per annum 2.5% per annum GMP Fixed rates Fixed rates

Mortality

– Before retirement No allowance No allowance

– After retirement S3PA year of birth tables S3PA year of birth tables with CMI_2021 projections with CMI_2020 projections and a 1.25% pa long-term and a 1.25% pa long-term rate of improvement rate of improvement

Commutation 100% of members commute 100% of members commute 15% of their pension at 15% of their pension at current rates current rates Life expectancies from age 65: Male currently aged 65 88 88 Female currently aged 65 90 90 Male currently aged 45 89 89 Female currently aged 45 91 91

Reconciliation of funded status to Balance Sheet

2022 2021 £ £ Defined benefit obligation 11,020,000 11,553,000 Less: Fair value of plan assets 12,263,000 11,931,000 Net defined benefit asset (1,243,000) (378,000)

In accordance with FRS102 the scheme surplus is recognised as an asset on the basis that the Trustees believe the Library will be able to recover the surplus either through reduced contributions in the future or through transfers from the scheme as outlined in the Trust Deed of the scheme.

in the Trust Deed of the scheme.



Equities
Alternatives
Government bonds
Corporate bonds
LDI assets
Cash / other
Total		 20222021

£ % weight£%
2,249,000 18.3%5,078,000 42.5%
2,570,000 21.0%2,447,000 20.5%
- 0.0%296,000 2.5%
4,883,000 39.8%1,439,000 12.1%
2,560,000 20.9%2,431,000 20.4%
1,000 0.0%240,000 2.0%
weight
12,263,000 100.0%11,931,000 100.0%

• 35

The following amounts have been recognised in the Statement of Financial Activities as part of Total Expenditure

2022
2021
£
£
Net interest (income) / expense on defined benefit liability (9,000) 10,000
Past service cost - -
Total net expense / (income) recognised
 (9,000)
10,000

The following amounts have been recognised in the Statement of Financial Activities below Total Expenditure
as Actuarial gains and losses:
 2022 2021
£ £
Remeasurement – gain / (loss) on liabilities due to experience
 (204,000) 257,000
Remeasurement – (loss) / gain on liabilities due to assumption changes 631,000
(1,126,000)
Remeasurement – return on assets excluding interest income 279,000
1,580,000
Actuarial gain for the year 706,000
711,000
Reconciliation of defined benefit obligation over the year:
 2022 2021
£ £
Defined benefit obligation at start of year 11,553,000 10,750,000
Interest expense on defined benefit obligation 228,000 233,000
Remeasurement – loss / (gain) on liabilities due to experience 204,000 (257,000)
Remeasurement – loss / (gain) on liabilities due to assumption changes (631,000)
1,126,000
Benefits paid (334,000)
(299,000)
Past service cost - -
Liabilities at end of year 11,020,000 11,553,000
Reconciliation of fair value of assets over the year:
2022 2021
£ £
Fair value of assets at start of year 11,931,000 10,162,000
Interest income on assets 237,000 223,000
Remeasurement – return on assets excluding interest income 279,000 1,580,000
Contributions by employer 150,000 265,000
Benefits paid (334,000) (299,000)
Fair value of assets at end of year 12,263,000 11,931,000
Return on assets 516,000 1,803,000
Reconciliation of funded position
 2022 2021
£ £
Net defined benefit liability / (asset) at start of year (378,000) 588,000
Expense / (income) recognised in total expenditure / income (9,000) 10,000
Actuarial (gain) / loss recognised below total expenditure (706,000) (711,000)
Contributions by employer (150,000)
(265,000)
(1,243,000) ( 378,000)

36 • ACCOUNTS

14 TRANSACTIONS WITH TRUSTEES AND OTHER RELATED PARTIES

Trustees received no remuneration in connection with their trusteeship (2021: £nil). No reimbursements were paid to Trustees for expenses incurred on Library business (2021: £nil). All Trustees are members of the Library and enjoy the associated benefits on the same basis as all other members. Unrestricted donations from Trustees and other related parties during the year totalled £43,380 (2021: £36,669).

Related parties include Key Management Personnel, which comprises the Trustees, Director and the Director of Finance and Resources. Aggregate benefits for these staff are shown in Note 15 below. The Library’s Defined Benefit pension scheme, the SSF (Staff Superannuation Fund) constitutes a related party, and full details are set out in Note 13 above. The Library bears the administrative costs of the SSF including fees paid to Legal & General Investment Management as managers of the scheme’s assets. Philip Broadley, the Library’s Treasurer, is a director of Legal & General Group plc. Investment decisions regarding the assets of the SSF, including the choice of investment managers, are made independently by the SSF Corporate Trustee.

Otherwise the Trustees believe there are no transactions with related parties that require disclosure.

15 STAFF COSTS 2022 2021 £ £ Staff costs comprise: Gross salaries and wages 2,431,975 2,113,801 - Termination payments - National Insurance 229,548 184,660 Pension costs 222,104 185,524 Total 2,883,627 2,483,985

Total employee benefits plus employer’s national insurance contributions for Key Management Personnel totalled £210,063 (2021: £197,078). In addition, the balance of interest-free season ticket loans due from Key Management Personnel at 31 March 2022 was nil (2021: nil)

In addition to the above, expenditure totalling £37,912 (2021: £33,958) on staff training and related consultancy is included with in other costs under Administration in Note 6 to these financial statements.

[16 EMPLOYEES]

The average number of employees for the year was 72.5 (2021:65.1). This includes casual events staff and those employed on the retro-cataloguing project.

The number of employees who received remuneration exceeding £60,000 are as follows:

Range 2022 2021 £60,000 - £70,000 9 3 £70,000 - £80,000 3 - £80,000 - £90,000 - - £90,000 - £100,000 - - £100,000 and above 1 1

Total Employers contributions to Group Personal Pension Plan for the 13 Employees was £42,089 (2021: 4 employees, £18,041):

• 37

17 COMMITMENTS UNDER OPERATING LEASES

Future minimum lease payments under non-cancellable operating leases are as follows:


Due within one year
Due between two and five years
Total		 2022
2021
££
10,385_10,005_
21,547_30,318_
31,932 40,323

Commitments under operating leases relate to photocopiers in the staff and member areas. The operating lease expense in the year was £10,525 (2021: £10,005).

18 RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES



Net income / (expenditure)
Depreciation and amortisation
(Gains) / losses on investments
Accumulated dividends
Dividends, interest and rent from investments
Decrease / ( increase) in debtors
(Decrease) / increase in creditors
Pension contributions and (income) / expense recognised
Net cash flow from operating activities		 20222021
££
(78,699)
256,563
(634,659)
(2,328)
(235,555)
(24,620)
46,525_111,085_
(159,000)
1,697,950
249,166
(1,034,165)
-
(196,100)
(747,274)
(255,000)
(840,773)
(174,338)

19 PRIOR YEAR ANALYSIS OF FUNDS


Unrestricted funds
Designated funds
Tangible fixed assets
Intangible fixed assets
Investment properties
Tom Stoppard Innovation
Fund
Total designated funds
Free reserves
Subtotal operating Fund
Pension asset / (reserve)
Total unrestricted funds		 B/fwdIncomeExpenditureRevaluationsTransfersC/fwd
01 April 20 2021 2021 2021 2021 31 March 21
£ £ £ £ £ £
17,992,953 - (234,452) - 90,348 17,848,849
- - (14,714) - 147,143 132,429
1,018,182 53,400 - - (53,400) 1,018,182
1,718,430 - - 88,115 (12,205) 1,794,340
20,729,56553,400 (249,166) 88,115 171,88620,793,800
2,974,682 3,238,721 (3,721,344) - (171,886) 2,320,173
23,704,2473,292,121 (3,970,509) 88,115 -23,113,973
(588,000) - 255,000 711,000 -
378,000
23,116,2473,292,121 (3,715,509) 799,115 - 23,491,973

38 • ACCOUNT38 • TRUSTEES’ ANNUAL REPORT

19 PRIOR YEAR ANALYSIS FUNDS continued


Restricted funds
Christopher Smith Fund
Development Appeal Fund
The London Library Trust
Supported memberships
Emerging Writers Programme
Staff Benefit Fund
Drue Heinz Literary Fund
Julio and Maria Marta Núñez
Memorial Fund
Library Fund Annual Appeal
Other restricted funds
Total restricted funds
Endowment funds
Drue Heinz Literary Fund
Jaqueline Golden
Endowment
Julio and Maria Marta Núñez
Memorial Fund
Total endowment funds
Total funds		 B/fwdIncomeExpenditureRevaluationsTransfersC/fwd
01 April 20 2021 2021 2021 2021 31 March 21
£ £ £ £ £ £
- 1,100,000 - - - 1,100,000
227,189 9,220 (1,533) 44,597 - 279,473
150,611 4,334 (62,311) 29,565 - 122,199
- 6,929 (6,929) - - -
43,700 36,559 (3,366) - - 76,893
47,930 - - 16,658 - 64,588
- 112,255 (112,074) - - 181
9,996 3,393 (795) - - 12,594
65,476 210,984 (210,984) - - 65,476
-119,315 (117,824) --1,491
544,902 1,602,989 (515,816) 90,820 - 1,722,895
3,901,071 - - 765,775 - 4,666,846
337,811 - - 66,312 - 404,123
117,902 - - 23,144 -
141,046
4,356,784 - - 855,231 - 5,212,015
28,017,933 4,895,108 (4,231,324) 1,745,166 - 30,426,883

20 PRIOR YEAR NET ASSETS BY FUND

20 PRIOR YEAR NET ASSETS BY FUND


Tangible fixed assets
Intangible fixed assets
Investment properties
Financial investments
Debtors and prepayments
Bank balances and cash in hand
Creditors: due within one year
Creditors: due after more than one year
Pension asset
Net assets
 2021 2021 2021 2021
£ £ £
17,848,849 - - 17,848,849
132,429 - - 132,429
1,018,182 - - 1,018,182
- 622,895 4,775,757 5,398,652
802,808 1,100,000 - 1,902,808
4,452,242 - 436,258 4,888,500
(514,914) - -
(625,623) - -
378,000 - - 378,000
(514,914)
(625,623)
UnrestrictedRestrictedEndowmentTotal
£
23,491,973 1,722,895 5,212,015 30,426,883

• 39• 39 • 39

DONATIONS AND BEQUESTS

The Trustees are grateful to all our supporters – those names we are reporting here and those who have given anonymously – for their generous contributions to The London Library during the year ended 31 March 2022.

Donations marked * were received via The International Friends of The London Library, a US registered 501(c) (3) charitable corporation.

Mrs Maundy Todd John C Walton Stephen Withnell

FOUNDERS’ CIRCLE UK

Dickens (£10,000)

John Colenutt Howard Davies Simon Godwin Basil Postan Sir Timothy Rice Ms Kim Samuel, Founder, Samuel Centre for Social Connectedness Mark Storey Philip Winston (with matching gift from Capital Group)

FOUNDERS’ CIRCLE US

Dickens (from $10,000) John and Kiendl Gordon Simon Lorne Mrs Robert Ian MacDonald Gretchen and James Johnson Sarah and Hank Slack*

Thackeray (from $5,000)

Peter and Millicent Bain Thomas W Keesee III David and Jennifer Risher Deborah Goodrich Royce Sylvia Slifka Douglas Smith and Stephanie Ellis-Smith

Thackeray (£5,000)

Philip Broadley Michael Cohen and Erin Bell Isabelle Dupuy Mr Andrew Hine The Bisset Trust Sebastien Paraskevas Peter T G Phillips

Martineau (from $2,500)

J Christopher Flowers Mrs Montague H Hackett, Jr Elizabeth Bennett Herridge Carey Adina Karmel Michael T and Helen B Kiesel Patricia and Tom Lovejoy Caroline S Nation Gillian and Robert Steel Susan Jaffe Tane*

Martineau (from £1,500)

Eleanor Anstruther Alain Aubry James Bartos Jenny Bourne Taylor Sue Bradbury OBE Consuelo and Anthony Brooke Anthony Cardew Nicola Coldstream Eric Coutts Sir John Gieve Jakob Haesler Philip Hooker Dr Sarah Ingham David Ireland Margaret Jones A M Keat Humphrey Lloyd David Lubin Kamalakshi Mehta Simon Morris Patrick Parrinder David Reade Peter Rosenthal Sir John and Lady Gwenda Scarlett Peter Stewart Marjorie Stimmel Paul Swain

LEGACIES

Anthony Bailey Heather Margaret Bell David Budworth Alan Thomas Gregory Stephen James Dr Jacqueline Latham Derek Pappin Malcom Pines Ena Mary Sheen

LIBRARY FUND ANNUAL APPEAL

Tom Adam QC Camilla Adeane David Alpin Peter Anderson Anthony Astbury Alain Aubry Juliet Aykroyd Emanuel Bajra Michael Baker

Richard Barber Nicholas Baring Nicolas Barker Barnsbury Charitable Trust James Bartos Thomas Bean Josette and Richard Beasley in memory of Ted Jones-Fenleigh David Beattie George Beckmann Susan Bennett David Bernstein A Bidgood Tim Bird Mrs J Bottles Bruce Boucher Sue Bradbury OBE Simon Martin Bradley Jeremy Bray Orlando Bridgeman Philip Broadley Marcia Brocklebank Judith Bronkhurst Jason Brooks Dr A Bruce Barnabas Brunner Robin Buchanan-Dunlop Sir Michael Buckley Pete Burgess Barbara Burman John Burman Mark Burton Peter L Caracciolo Rosemary Carpenter D C H Cartwright Caroline Chapman Peter Chapman Dr Richard Cockett Nicola Coldstream John Cole Susan Cole John Colenutt Ian Collinson O J Colman Charitable Trust John Colvin Professor Congdon Jilly Cooper Edward Cox J D H Cullingham Valerie Cumming David Darbyshire Kenneth Davenport Howard Davies Keri Davies Lucy Davison Professor Josu de la Fuente Mrs Caroline de Souza

40 • TRUSTEES’ ANNUAL REPORT40 • DONATIONS AND BEQUESTS

Francis Dineley Miss Catherine Donner Hugh Dunthorne Julian Duplain H H I Easterling John Edmondson Neil Fairlamb Dr Tamara Follini Margaret Ford and John Stewart Charles Foster Norman Franklin John Furber QC Maurice William George The Hon H M T Gibson’s Charity Trust Michael Gifford Judith Goodison Miss E F Goodway Canon Donald Gray Irene Greatorex David Green N M Gwynne Robert Gwynne Dorothy Halfhide Susan Haskins Mr Nigel Hawkins Philip Healy Lady Heseltine Mark Hichens Miriam Hill Professor Geoffrey Hosking Michael Hutchings Nicholas Hutton David Ireland David Ivorson Tom Jaine C A Jennings Dr Nels Johnson Marcy Kahan Denis F Keeling Andrew Kerr-Jarrett Caroline Knight Professor H A Lamb Anne Lambirth Rosemary Lamont Hugh and Josseline Langmuir Richard and Virginia Langstaff P F Latham Lord Lauderdale Frank Lawton Becky Lehman Charles Lewis C K Liddle Keith Livesey Sir Michael Llewellyn-Smith Frederick Lock Anthony Loehnis David Lough Sir Laurie Magnus

Anne Maningas Catherine Manning Richard Marriott Professor Stanley Martin Tony Martin Professor Seán McConville David McDowall P A McGinley Anthony McGrath Caroline Mary Medawar Mr Stanley Meeds David Metz Dudley Miles Sally Miles Lord Milford QC David James Miller Iain Milligan QC John Mitchell Dr Charles More John Morgan Simon Morris Ms S Morris Charlotte Mullins Allan Murray-Jones Charles Nugent Miss I M E Orr Dr H M Page Philippa Clare Parker Mr Paul Parkinson Brian Patterson Jeremy Paxman Mr T D K Pearce Paul Pearson Mr Donald M Peck Professor Simon Pepper Peter Pickering Professor Nicholas Pickwoad The Pilgrim Family Andrew Prescott Robin Price David Profumo and Family Isabel Raphael Peter Ratzer Clive Raymond Stephen Reardon Margaret Riley Isabel Rivers Gareth Robertson Duncan Rogers Nigel Rodgers Steve Rogers Stephen Rosser Alison Rudd-Clarke Penelope Ruddock Dr Richard Rycroft John Sargeant John Seaton David L Shaw OBE

Michael Sherborne John Sheridan Ricky Shuttleworth Martin Sinclair W N Smith Timothy Smith Dr Margaret Sparks Charles Spencer James Stainton Louise Stein James Stitt Robert and Melanie Stoutzker Aude Thibaut de Maisieres Michael Thomas QC Priscilla Thomas Karine Thompson R E Thompson Lady Anne Thorne Trish Trahar Mrs V Trelinska Monica Tross Kevin Tuffnell Dr F E Twinn Sandor P Vaci Professor William Van der Kloot Bob Verner-Jeffreys X N C Villers Michael von Brentano Charles Vyvyan Michael Wace Lady Wade-Gery Jane Wainwright Guido Waldman Richard Wallington Parthenope Ward Germaine Warkentin Wilfred Webber Nigel Wenban-Smith Sam Whimster William Willans Adrian Wilsdon Alyson Wilson Michael Wilson Stephen Withnell Stephen Wood Dr Richard Woodberry Mr Graeme Wright Mr David Wurtzel Samantha Wyndham Dimitrios Zikos Dr P S Zuckerman

EMERGING WRITERS PROGRAMME

Philip Broadley The John S Cohen Foundation Paul Dettman Drue and H J Heinz II Charitable Trust*

• 41

John and Kiendl Gordon Max Hastings The International Friends of The London Library and US Founders’ Circle Gretchen and James Johnson Simon Lorne Robert Macleod Peter Stormonth Darling Charitable Trust David and Jennifer Risher Deborah Goodrich Royce Hans Seesarun Sarah and Hank Slack*

SUPPORTED MEMBERSHIP AND ACCESS PROGAMMES

John and Kiendl Gordon Gretchen and James Johnson Simon Lorne Deborah Goodrich Royce Ann M Shukman Sarah and Hank Slack* Walter Guinness Charitable Trust

COLLECTION AND ARCHIVE

Amanda Bailey on behalf of Damien McCloud Kier Baker on behalf of Wendy Whyte Phil Baker Darren Bird Dr Walter Blackstock Monica Blair on behalf of Anthony Teasdale Blair Philip Bovey Sebastian Brock Thalia Brotherton-Ratcliffe Barnabas Brunner Dr John Burman Mr Mark Burton Jody Butterworth in memory of Ian Butterworth Andrew Rougier Chapman Peter Chapman Paul Cheshire Josh Childs on behalf of Andrew Childs Nicola Coldstream Dr Janet Vivienne Cole Helen P B Corlett Paul Dettman Colin P Ellis Miss Alice Grant Ena Green on behalf of Alec Douglas Green Penny Hatfield Gill Hedley on behalf of Pat Hedley Lynn Henry on behalf of Leo James Henry Jane and Steve Heumann Marianne Hinton Sir Michael Hintze, GCSG AM Melissa Hunting on behalf of Joan Miller Hunting David Ivorson Rosemary Kelty

Anne Lambirth Kaytie M Lee Patricia Lovejoy on behalf of Rixt Woudstra Andy Martin Cara McDonagh on behalf of Christine McDonagh Katie Meadows on behalf of Pauline Meadows Caroline Mary Medawar in memory of Professor Irving Dworetzsky James Myddelton Charlotte Neal on behalf of Michael Stocks Peter P Nicholson Helen O’Hagan on behalf of James Rowland Linda Ordogh Brian Patterson Alison and David Pedley Lindsay Porter on behalf of Peter G Knight Tristram Powell David Reade Nicholas Peter Riddell Professor Henry Roseveare P C B Ruddock Yasmine Saker on behalf of Noah Challah Sophie Skarbek-Borowska Martin H Smith Jeremy Solel Rosemary Spencer Laura Steer and Sam Naylor in memory of Blaine Pike Gopal Subramanium Joy Tetley Patricia Trahar Janice Vale in memory of Justine Budenz R G Verner-Jeffreys Guido Waldman Heidi Walsh on behalf of Louis Flannery QC Robert Whelan Yvette G Wiener Stephen Wood

UNRESTRICTED GIFTS

George Beckmann Ann Bowtell Sebastian Brock The Clore Duffield Foundation Dr Emelyne Godfrey Mick Gold Natasha Hobday Drue and H J Heinz II Charitable Trust* Dr Elisabeth Kehoe Barbara Minto Dr Charles More John Perkins Leslie Powell Nigel Rodgers Philip Rowlands John Thornton Sir Michael Tugendhat

Stephen Withnell

DEVELOPMENT APPEAL FUND

Mark Amory Trevor Coldrey Richard Freeman Jane Goddard Professor Isobel Grundy Baroness Hilton of Eggardon QPM John Madell Peter Rowland Sir John Sainty Ann Williams

DONATIONS OF BOOKS

Thanks are also due to various government and official bodies, learned societies, institutions and firms, and other libraries and publishers who have given their publications, and to the many donors of books and other items who are listed below:

Leslie Adkins Roy Arthur Adkins Jeremy Adler The Anglo-Catholic History Society Anthony Astbury The Anthony Powell Society The Antique Collectors’ Club Dr Adriano Aymonino Martin Bailey Rosemary Baird Andreae Dr Phil Baker Martin Bakes Professor Anthony Bale Professor Caroline Barron Dr James Bartos Helen Batten The Betjeman Society Professor Robert Bickers Mary Bing Robin Blake Bookblast John Booker Dr Jessica Borge Professor Bruce Boucher Philip Bovey Dr Susan Bracken Christopher Bray The Francis Brett Young Society British Association for Cemeteries in South Asia British Sociological Association Rosemary Brown John Buchan Society The Late Justine Budenz Duncan Campbell-Smith Juliet Carey Sir Charles Chadwyck-Healey Bt

42 • DONATIONS AND BEQUESTS

Lesley Chamberlain Caroline Chapman Peter Chapman Charleston Library Society Children’s Books History Society Chris Beetles Gallery Christ Church College, Oxford Rupert Christiansen Dr Timothy Clayden Diane Clements Dr Emily Cole The Wilkie Collins Society Eden Collinsworth The Joseph Conrad Society (UK) Dr Edward Cox Mark L Davies Derbyshire Archaeological & Natural History Society Steven Eggett Christopher Eimer Travis Elborough Dr Brent Elliott The Embassy of the Republic of Poland F Hugh Eveleigh The Fabian Society Adam Freudenheim Friends of the Dymock Poets Friends of the National Libraries Gernot Gabel Henry George Foundation of Great Britain German Historical Institute London Charlotte Gere Patrick Grattan Professor William Greenslade Claudia Gregori John Grieve Robert Gwynne Dr Stephanie Hare Jeremy Harte Nicholas Hartley Sir Max Hastings John Havard OBE Dr John Hemming Sue Henry in memory of Philip Henry Hertfordshire Association for Local History Rosemary Hill Marianne Hinton Stephen Hoare The Late Judith Hodgson Dr Paul Holberton Philip Hook The Huguenot Society Sara L Issler Robert V Jackson Japan Publishing Industry Foundation or Culture Julie Kavanagh The Kipling Society

Anthony Lambert Dr Kedrun Laurie Basil Lawrence Ricardo Lemos Dr Robert Lentell Jason Lever The Library of the Middle Temple The Literary Review Sir Michael Llewellyn-Smith Stuart Lochhead Dr Frederick Lock Gillian Lowry Julia MacKenzie Dr Peter Main Andrew Martin E Anthony Martin The Massachusetts Review The Matthieson Gallery Professor Seán D M McConville David McDowall Giles Milton Frederick Mocatta Richard S Morgan Simon Morris Isobel Muir Charlotte Nassim Dorothea Nattrass in memory of Graham Nattrass Charles Nettlefold New Statesman David J Nicholson Sebastian Nokes Notes and Queries for Somerset and Dorset Stephen Ongpin Michele Pacitti Dr Christopher Paley Philippa Parker Stephen Parkin Dr Brian Parsons Professor Charles Pasternak John Pearce ffiona von Westhoven Perigrinor John Perkins Dr Mario Petrucci Professor Deborah Philips Phoenix Writers’ Circle Dr Peter Pickering Professor Zoe Playdon The Anthony Powell Society Dr Cecilia Powell The Powys Society David Profumo Prospect Books Paul Rand Paul Rapley and Aramazd Stepanian The Late Susan Reynolds Michael J Richardson CB

Susan Ronald

Royal Academy of Arts Royal Anthropological Institute The Royal Artillery Institution Royal Horticultural Society The Royal Society Royal Society of Literature Deborah Royce Andrew Saint Siegfried Sassoon Fellowship Ann Schlee Tony Scotland Lord and Lady Scott Thomas Seymour Elif Shafak Sir Peregrine Simon Dr St John Simpson Dr Susan Sloman Martin H Smith William Solesbury Sydney Smith Association The Society of Authors The Society for Psychical Research The Society of Women Writers and Journalists Dr Richard Somerville Martin Spellman Professor Susan Standing Annabel Streets The Right Honourable Lord Sudeley Susan Symons Dr Terence Tastard The Thames Sailing Club The Angela Thirkell Society Philippa Thistlethwaite Sir Richard Thompson Count Nikolai Tolstoy Trolley Books Monica Tross Dr Barry Turner Ray Tye Catherine Tyler Sandor Vaci Clive Vaisey Royston Vince Peter Warlock Society Wedgestone Press Andrew West Geoffrey Wheatcroft Professor Sir Christopher White CVO Dr Paul Whiteman The Oscar Wilde Society Dr Michael Wilson The P G Wodehouse Society Stephen C Wood Dr David Woodhouse The Writers’ Guild of Great Britain

• 43 • 43

ORGANISATIONAL INFORMATION (UNAUDITED)

10-YEAR FINANCIAL SUMMARIES

Unrestricted funds only (prior to gains/losses on investments)

Year Operating Fundraising **Net ** Gains / (losses) Reduction/
Net
Result Activity Investment investment (increase) in movement
income value pensions deficit in funds
£ £ £ £
£		 £
2013 (586,452) 1,314,115 303,559 332,535 (195, 000) 1,168,757
2014 (771,745) 1,194,338 246,275 37,700 212,000 918,568
2015 (499,886) 431,444 279,118 292,414 (416, 000) 87,090
2016 (1,043,961) 1,051,074 317,675 (503,497) (137, 000) (315,709)
2017 (1,156,287) 1,081,380 331,757 658,827 116,000 1,031,677
2018 (1,130,777) 1,057,986 240,000 (169,552) 149,000 146,657
2019 (1,105,361) 2,418,153 257,000 808,349 340,000 2,718,141
2020 (914,908) 287,961 318,991 (567,968) (382,000) (1,257,924)
2021 (1,242,506)
1,710,191		 196,100 1,034,165 711,000 2,408,950
2022 (1,543,215)
585,302		 235,555 643,659 706,000 627,301

LIBRARY FUNDS AS AT 31 MARCH

Free Free
reserves reserves
(excluding (including
Pension Pension Pension Designated Total Restricted Endowment Total
Year Reserve)

Reserve		 Reserve) funds #
unrestricted		 funds funds funds
£000 £000 £000 £000 £000 £000 £000 £000
2012
4,291		 (1,815) 2,476 21,690 24,166 616 1,437 26,219
2013
4,653		 (1,871) 2,782 22,099 24,881 676 1,830 27,387
2014 4,940 (1,495) 3,445 20,148 23,593 586 1,893 26,072
2015 4,834 (1,661) 3,173 19,936 23,109 587 1,999 25,695
2016 4,258 (1,633) 2,625 19,652 22,277 501 2,601 25,379
2017
4,367		 (1,333) 3,034 19,415 22,449 608 3,353 26,410
2018 3,427 (972) 2,455 20,149 22,604 557 3,396 26,557
2019 3,547 (456) 3,091 20,872 23,963 559 4,754 29,276
2020 2,975 (588) 2,387 20,730 23,117 545 4,357 28,018
2021 2,320 378 2,698 20,794 23,492 1,723 5,212 30,427
2022 2,150 1,243 3,393 20,288 23,681 1,501 5,871 31,054

Including tangible fixed assets and investment properties

44 • TRUSTEES’ ANNUAL REPORT

MEMBERSHIP AT YEAR-END

Numbers at 31 March

2022 2021 Full Individual Membership 4,293 4,163 Supported Membership 276 279 Young Person Membership 797 623 Life Membership 1,126 1,147 Institutional Membership 170 162 Remote Access Membership 529 502 Associate Membership 161 139 Emerging Writers 40 40 Total 7,392 7,055

TEN-YEAR SUMMARY OF MEMBERSHIP

MEMBERS

Increase/ (decrease) Number New members Withdrawals on prior Year at year-end during year during year year 2013 7,147 819 (827) (8) 2014 7,009 745 (883) (138) 2015 6,708 697 (998) (301) 2016 6,613 692 (787) (95) 2017 6,569 747 (791) (44) 2018 6,509 774 (834) (60) 2019 6,592 874 (791) 83 2020 6,950 1,101 (743) 358 2021 7,055 1,130 (1,025) 105 2022 7,392 1,342 (1,005) 337 Average 6,854 892 (868) (24)

Note: the figures for new members also includes reinstated members

SUPPORT US

DONATIONS

The London Library is a financially independent, registered charity and since its inception, philanthropy has been essential to keeping the Library operating. There are many ways in which your support, whatever its size, can make a real difference. Please consider one of the options below to help us continue inspiring generations of writers, readers and thinkers:

If you would like to make a philanthropic gift towards the Library’s projects, learn more about our priorities or discuss how your support can help, please contact the Fundraising Team

INTERNATIONAL SUPPORTERS

For over 40 years the International Friends of The London Library (IFLL) has been a vital supporter of The London Library, helping it continue as a haven of creativity and inspiration. IFLL is a body administered from New York under a volunteer board of directors, and it is registered 501(c)(3) for tax-exemption privileges in connection with its charitable activities in support of the Library.

Library members and other friends based outside the UK have made many generous donations through IFLL, with recent gifts contributing to crucial Library activity including the Emerging Writers Programme, conserving and developing our wonderful collection and Library Fund Annual Appeal. Supporters can also join the US Founders’ Circle and enjoy an exciting programme of events in New York and London.

For more information about giving through IFLL please visit ifll.org

TRANSNATIONAL GIVING EUROPE

The Library is also able to receive donations through Transnational Giving Europe (TGE). TGE is a partnership of leading European foundations and associations that facilitates tax-efficient cross-border giving within Europe. TGE is operational in most European Union states.

fundraising@londonlibrary.co.uk

44 (0) 20 7766 4795

Or visit londonlibrary.co.uk/support-us

OTHER WAYS TO HELP

Patron

† Her Majesty The Queen

Vice-Patron

HM The Queen Consort

President

Sir Tim Rice

Vice-Presidents

Nicolas Barker OBE, FBA The Rt Hon the Lord Boateng The Duke of Devonshire KCVO CBE Lady Antonia Fraser CH DBE Caroline Michel Jeremy Paxman Josie Rourke Alexandra Shulman CBE Sir Tom Stoppard OM CBE

Chairman of the Trustees

Sir Howard Davies

Treasurer

Philip Broadley

Director

Philip Marshall

For further information please visit our website or contact us at:

The London Library 14 St James’s Square London SW1Y 4LG

Telephone: +44 (0)20 7766 4700

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www.londonlibrary.co.uk

ISSN 0307-4447[n] Signworx Hereford Ltd[n ] Joyce Mason Design