2023-03-31-accounts

LLGC NLW LLYFRGELL GENEDLAEfHOL CYMRU THE NATIONAL LIBRARY OF WALES ANNUAL ACCOUNTS 2022-23

Contents Page Reference and Administrative Details Annual governance statement (including structure and management) Objettives and Activities Achievement and Performance Financial Review Sustainability Report Policies relating to Staff Plans for future periods Sracement of Board and Librarian's Responsibilities The Certificatr and Report of the Auditor General for Wales to the Senedd Statement of Financial Attivities Balance Sheet Cashflow Statement Notes to the Financial Statements 3-15 16-17 [8-21 22-24 25 26 27-29 30 31-34 35 36 37 38-61

The Natio￿1 Library of Wale5 Annual Accounts 2022123 Reference and Administrative Details oard of Trustees (from l April 2022, and since the year end) Appointed by the Welsh Government: Ashok Ahir, President (permanent appointment effectNe from l April 2022} Andrew Evans, Vice President (effective from l April 2022) Michael Cawdnagh (to 31 August 2023) Quentin Howard + (to 31 August 2023.. reappointed from I September 2023) Dr Carl Williams + (to 31 August 2023) David Hay Lydia Rumsey Dr Janet Wademan Dr Andrew Cusworth {from l November 20231 John Trevor Alen (from l November 2023} Appointed by the National Library of Wales: Lee Yale-Helms. Treasurer (to 31 March 2023) * +. appointed as Trustee from l June 2023) Gronw Percy, Treasurer (from l April 2023} * + Dr Gwenllian Lansdown Davies (to 29 February 2024) Dr Anwen Jones {to 29 February 2024- reappointed from l March 2024) Dr Elin Royles (resigned 26 January 2023) Susan Davies Professor Elaine Treharne + Hannah Lindsay (from l February 2022) ' *Members of the Audi¢ Risk and Assurance Committee + Members of the Finance and Resources Committee A Member5 of the Perforniance and Qualtty Committee Independent External Members of the Audi¢ Risk and Assurance Committee: Rhian Evans Huw Lloyd Jones CowOPted members of the Finance and Resources Committee: Hywel Tudor (to Qctober 2022) Dr leuan Griffiths (resigned 19 January 2024}

The National Librwy of w￿e$ Ann(d Accounts 2022123 Executive Team Member5: Chief Executive and Librarian. and Accounting Officer Professor Pedr ap Llwyd FLSW Director of Corporate Services David Michael-resigned 16 August 2023 Director of Collections and Digital Seryices Dr Owain Rh Roberts Director of Communications Engwdement and Partnerships (from I September 2022) Rhian Gibson Principal Adviser&' Bankers Solicitors National Westminster Bank, Aberystvryth Geldards LLP, Cardiff Humphreys Roberts & Bo¢ Aberystwy¢h Hugh James. Cardiff Darwin Gray, Cardiff External Auditors Internal Audttors Investment Broker5 Actuarial and Pensions Audit Wales. Cardiff Welsh Government Internal Audit Service Investec Wealth and Investsmenr London Willis Towers Watson, Edinburgh Registrred Charity No. VAT No. Registered Address 525775 905194137 National Library of Wales Penglais Aberyswch Ceredigion. SY23 3BU Corporation Tax The National Librdry of Wales is exempt from corporation tsx under Settion 505 of the Income and Corporation Taxes Att 1988

The Nation￿ Library of Wale5 Annual Accounts 2022123 Annual Governance Statement Statutory Background The Natyonal Librnry of Wales (the Libr3ry1 was established by Royal Charter on 19 March 1907. Supplementsl Charters were granted in 191 l and in 1978. with slighc constitutional revisions. On 19 July 2006 3 new Supplemental Charter was granted by Queen Elizabeth11. This Charter changed the Library's constitution and governance significantly and recognised devolutyon of government from Westminster to Wales. Whereas previously the Library had a Court of Governors and a Counal, it now has a Board of Trusiee5. The Library is also a registered charity and a Welsh Government Sponsored Body. It is funded by a combination of grant-in-aid allocated by Welsh GovernmenL and income secured through its commercial, fundraising and charEing attivities. The Library s grant in aid allocation and conditions are set out in the remit letter from the Depury Minister for Arts. Sport and Tourism. The Library'5 nature as a Royal Charter foundation and a regI￿red chariry. and also a Welsh Government Sponsored Body governs how it operates and fuifils ￿5 role and obligations. The Library must balance these M roles to fulfil the objecrs of its Charter and charitable status, which reflects its foundation purpose, while at the same time adhering to the principles of arms-length governmenL The Librdrfs objects are "to colleo preserve and giye access to all kinds and forms ol recorded knowledge. especially relating to Wales and the Welsh and other Celtic peoples, for the ￿nefIt of the public, including those engaged in research or learning" Statement of the Board of Trustees, and Accounting Officerfs responsibilities The Library is required under its Royal Charter and settions 8 (1) and 8 (2) of its Sratutes to prepare annual accounts. and to prepare and publish a report upon the affrairs and position of the Librdry during the preceding year including such information as the Trustees from time to time detemiine. The Library must prepare its accounts in accordance with the Accounts Direction issued by the Welsh Ministers, Sertion 9{4) of the Museums and Galleries Att 1992 and the Charities Statement of Recommended Prattice. The Library is accountable to the Welsh Government for the public funds it receives through the Fromework Agreemenr. which is demonstrated through regular monitoring meetings with its sponsor body and via the annual audit of the Library's accounts by Audit Wales, the Library's sr2tutory auditors. The Chief Executive and Librarian is the designated Accounting Officer for the Nacional Library of Wales. His responsibility as Accounting Offi￿r is set out in the Accounting Officer's Memordndum issued by the treasury and includes responsibility for the propriety and regularity of the public finances for which he is answerable. for keeping proper records. for safeguarding the Librnry's assets, and for the preparation of the annual report and accounts. Scope of Responsibility The Accounting Officer and Trustee5 have colleccive re5ponsibiliry for miintaining a sound govemance framework and a sy5￿M of internal control that Supports the achievement of the Library's vision, aims and Objectiv￿ while safeguarding the public funds and assets for which they are re5pon5ible. in accordance with the responsibilities assigned to them in Managing Wekh Public Money (2016).

The National knbrary of Wales Annual Accounts 2022123 These responsibilities are also outlined in the Framework Document drafted by the Welsh GovernmenL which regulates the relationship betsveen the Welsh Government and the Librdry, a revised version of which Wds shared wth the Board of Trustees at its meeting in january 2022. Welsh Government had nol as of 31 March 2023, shared a final version of the revised Frumework Document with the Library. The Board is responsible for effective leadership, defining and developing strategic d1￿ction. setting challen&'ng objectives. promoting high stsndards of public finance. ensuring th2t the Library discharges its funrtions effecovely and efficiendy, and monitoring performance, to ensure that the Library fully meets its aims. objecttves and performance tsrgets and delivery against plans and budgets. The President is the primary communicator ￿￿een the Board and the Deputy Minister for Arts, Sport and Tourism and it is the President's role to ensure that other Board members are kept appraised of all such communications. The President is also responsible for ensuring that the Board's policies and actions support the Deputy Ministrr's wider srratrgic policies through the Welsh Government's Programme for GovemmenL l. Corporate Governance Framework and Regulations The Coty)orute Govemonce Framework was adoptrd by the Board of Trustees in November 2017. Revi5ion5 since that time have included the inclusion of Appendrx l. Board Delegarion ond Stoff Funttions. and reYi5ed Terms of RefererKe for the three standing committees of the Bo3rd in 2021. At its meeting on 27 January 1023. the Board of Trustees approved a revised Corporote &>vernonce Fmmework which has been updated to include reference to the Officers, Committ*, and a comprehensive Trusrees Code of Condua together with references Eo the current Library stTrtegy, and updated documentation. In Septsmber 2023. Trustees approved Tem]s of Refrren￿ for the Boord of TrUs￿e$. and this document is also included in the Corporate Governance Framework. The Corporate Governonce Framework sets out the key responsibilities of the Board of Trus￿$ and Executive while the Regulations sets out the proceedings of the Board and its committees. 2. Recruitment and Appointment of Trustees The Librnry's Board consists of fifteen Trustees, eight of whom are aptx)inted by the Welsh Government in consultation with the Trust￿, and seven by the Librdry in accordance with the Regulations. The Trustees include the three Officers of the Library - PresidenL Vice President and Treasurer, the President and Vice President are appointed by the Welsh GovernmenL and the Treasurer is appointed by the Library. All appointments are made in accordance with the Library's Statutes and RegUl(￿on$ and the principles of open Se1￿ClOn as recommended by the Nolan Rewew. In accordance with Section 6 (v) of its Ro￿1 Charter, the Librdry has the legal authoriry to remunerate Trustee5. and a decision was made by Trustees in 2020 to remunerate the post of PresidenL Following a period as interim President from 13 Sep￿rnber 2021. Ashok Ahir was appointed by the Welsh GovernmenL followng interviews and appearance before the Culture, Communications. Welsh Language. Sport and International Relations Commit￿, to the role of President for a period of four years in March 2022, taknng up his appointment on l April 2022. From l April 2022, the President's role was remunerated on the basis of one day's weekly service in the role at a fee of £337 per day, or annualised remuneration of £17.591. The President doesn't receive pension benefits.

The National Library of Wales Annual Accounts 2022123 Andrew Ewan5 was appointed by Welsh Government to the role of Vice President for a period of four years. also taking up his appointment on l April 2022. Following a decision by TrusTre5 in March 2021 to extend the Treasurer's appointment for a further two years to provide stability and continuity to the Library at a particularly challenging period. the Librdry ran a campaign during 2022 to appoint a Treasurer, who would shadow the current Treasurer until his ￿mi of ofrice ended on 31 March 2023. Gronw Percy was appointed in October 2022 and shadowed the current Treasurer before officially taking up the role on l April 2023 for period of four years. Trustees took a decision in April 2023 to appoint Lee Yale-Heims as Trustee for a period of years to fill the vacdncy left by Elin Royles, resignation. This appointment will provlde continuity in the ongoing discussions surrounding the Library's pension scheme. as Lee will continue in his role as Chair of the Library's Pension Scheme Board. Mike Cavanagh and Carl Williams stepped down at the end of their terms office on 31 August 2023, while Quentin Howard Wds reappointed for a further four year term, effettive from I September 2023. John Trevor Allen and Andrew Cusworth were appointed by Welsh Government as Trustees for a four year term. effective from l November 2023. No other Officers or Trtjstees were remunerated during the year but all. including the Presiden( were entrcled to claim reasonable expenses while undertaking their Trust* duties on behalf of the Library. Details of Trustees. signifirant interests are maintained in a register of interests, held at the brary. 3. Trustee Induction and Training The Trustees. Hondbook was updated to include the revised Corporoie Govefflan￿ Framework approved in January 2023, updated Yersions of Chariry Commission publications, where applicable. and a new introductory section. To ensure the Library s continued commitment to the susrainabiliry agenda, the Trustees. Handbook is now available online only. On 26 September 2022, representative5 from Investec, the Librarfs investment brokers, provided presentation to Trustees and independent members of the Audi( Risk and Assurnnce Committee on responsible inve5tTng and Sustsinability at Investec. and how environmer)tal. social and governance factors are incorporated In￿ their investment analysis. On 7 November 2022, Helen Morris, Welsh Government Internal Audit Service, faciliratrd a workshop on risk appetite with Audo Risk 2nd Assurance Committee members. co-opted members of the Finance and Resources Committee and the Executive Team. Training on cyber security is a topic which the Board wishes to pursue, and this will be facilitated during 2023-2024. 4. Board and Committees- Membership and Meetings The Board held its six scheduled meetings during the year, all of which were hybrid. wth members able to attend in the building in Aberystwth or online. Full simultaneous translation Wds provided for all meetings, ensuring thai the Library met its obligations under the Welsh Language Standards. In addition to the six scheduled meetings, an additional e105ed session was held on 21 July 2022 where the Chief Executive and Librarian presented to Trustees an early draft of a bid to Round

The National Library of ￿￿eS Annual Accounts 2022123 2 of the UK Levelling Up Fund, and two further extraordinary meetings on 13 December 2022 and 23 February 2023. The meeting on 13 December vfts convened specifically to discuss the strategic outline case for a National Gallery of Art and Photography {Levelling up Fund) and the meeting on 23 February 2023 wa5 convened to further discus5 the budget for 202312024. An extraordinary meeting, of the Trustees only. held on 19 December 2022, to discuss the Library's future financial Sustsinability and what could be done to address any issues. All Board and committee ￿perS were distributed to members elettronically. further suprx)rting the Library s commitment to the 5Usuinability agenda. The Board meerings were also attended by representatives from the Welsh Governmen[ Chief Executive and Librarian, and Library Directors. Board agendas and minutrs are published on the Library website. together with a brief summary of papers to be presented at each meeting. s:Ilwww.libra -nlw nlw- Board members. biographies can be seen aL s:l/www.libra .waleslabout-nlwl overnancelnlw- vern rd-m 5.1 Committee Structure The Board has three standing committees whose Terms of Reference are included in the Corporate Governance Framework Committee Key Responsibilities | Audit, Risk and i Assurance A standing committee which encompasses all the assurance needs of the Board of Trustees and Accounting Officer in their responsibilities for the Library's risk managemenL internal controls. sratutory accounts. and governance. The committee also engages with the work of internal and external audit and financial reporting issues Finance and Resources A standing committee which encompasses all the assurance needs of the Board of Trustees in respett of the Library's effective, efficient and sustainable financial and other resource managemenL in particular the Library s investment portfolio, the use of its privats funds. its commercial attivities, and the performance of its fundraising campaigns Perfom)an¢e and Quality A standing committee which encompasses all the assurance needs of the Board of Trustee5 on upholding effettiye and efficient delivery sr2ndards. monicoring, reviewing and developing the services provided, ensuring accessibility and quality of seryiee for all Stakeholders, and ensuring that the requirements of all stakeholders are equitably met In addition to the standing committees, the Board has also established a Buildings Panel which provides assurances and makes recommendatiot)s to the Board of Tru5tee5 on matters regarding the Library's buildings and estate, including its maintenance, use, and developmenL and also oversee5 the

The National Library of Wales Annual Accounts 2022123 ambitious dec2rbonisation progrdmme. The Panel was chaired by Mike Cavxnagh, Trustee until he stepped down from the Board in August 2023. and is now chaired by Quentin Howard, Trustee. The following Trustees serve on the Pensions Fund Board - Lee Yale-Helms {Chair). Carl Williams, Anwen Jones and Ashok Ahir. Quentin Howard and Lydia Rumsey serve on the Wales Broadcast Archive Programme Board to represent the interest of Trustees. Audit, Risk and Assurance Committee In addiuon to Trustee and independent members, the Library's internal auditors and representstives from Audit Wales attend committee meetings. The Librdry's sponsor division reserves the right for a representstive to attend one meeting a year. The committee paid due attention to risk management and internal controls at the Library. and as part of its continued programme. undertook deep dives into ( l ) swrage space at the Library and (2} legal deposiL and the implicauons of the Library's legal deposit commitments on storage space at the Library. The Risk Manogement Policy. Was not upaated during 2022-2023 due to an ongoing review but will be revised during 2023-2024. As risk management is an area of parricular concern to the committee. it Wds agreed. in conjunction with the Chief Executive and Librarian, that risk management would be the subjett of an internal audit to be undertaken early in 2023-2024. As previously mentioned, committee members. other Truscees. and co-opted members of the Finan￿ and Resources CommI￿e and the Executive took part in a two-hour risk workshop on 7 November 2022, facilitated by Helen Morris Iwelsh GovernmenL Internal Audit SerYice}. to discuss the Librnry s risk appetite, and the discussions of that workshop will further feed into the revised Manogement Policy. In line with good practice, as laid out in settion 1.6 of the Audit ond M'sk Committee Assuronce Handbook {HM Treasury. 20161 the committee prcduced its first annual repor¢ ouriining the work undertaken during the year and presented this to the rn￿n8 on 26 April 2022. This reporc ￿ds subsequently presented to the Board on 27 May 2022. Other areas of scrutiny included reviewing internal audit reports, single tender actions. information security. srarutory annual account& and in particular any instances of breaches of data, cyber security and other information breaches which had occurred. The committee is chaired by Janet Wademan and met four times during the year. Finance and Resources Committee The commitfft focused on scruunising and reviewing the Library's financial plans and budgets and the implications for the Librdry's financial stability. At the meeting on 13 June 2022 members were concemed wrch the Library's frngile financial stabiliry and agreed that it should recommend to the Board of Trustees that an external independent review of the Library's financial situation should be commissioned, which the Trustees approved at a meeting on 22 July 2022. The consultation on any changes to the Library's pension scheme trmporarily put on hold as the Welsh Government announced during the year that they would be undertaking a review of pension schemes across the public bodies within the portfolio of the Deputy Mini￿r for Arts, Sport and Tourism. Following discussions with Welsh Government officials. it was confirmed that the Library

The Natyonal Library of Wales Anntd Accounts 2022123 could continue to move to consultation with its staff and unions and this will be done during 202312024. Requests for use of the private fsjnd reserves were considered. Èn accordance with the knbrdry's Privt7te Funds Investment Policy 2020- 2025, and recommendatiorÈs made to the Board of Trustees on whether these should be approved. Four commit￿ meetings were held during the year. with an additional extraordinary meeting held on 4th April 2023 to discus5 specific Strategic pension considerations in a report prepared by Willis Towers Watson, the knbrary's pension actuarie5. The committee ￿ds chaired by the Treasurer. Lee Yale-Helms until March 2023, and subsequently by the new Treasurer, Gronw Percy, from l April 2023. Performance and Quality Committee The committee focused on progress against perfomiance indicators. the delivery of the operational plan and governance of the Broadcast Archive projecL The committee also received the Equality and Dive￿tt¥ Annual Report and discussed a draft of the Framework Documeftt prepared by the sp)nsor body. The meeting held on 3 May 2022 was devoted to discussing performance indicators for the 2021- 2026 stratewc plan and also the 2022-2023 operational plan. The meeting on 18 November 2022 discussed the draft Tnjstees. Code ofcondu(t and the hybrid working policy for staff. The committee also discussed the Boord Effectiveness Review published in January 2023, (which had been presentrd previously to the Audit Risk and Assurance Committee), and the Chair will draft a development plan to present to Trustees for discussion at a Board workshop on 27 July 2023. The committee is chaired by the Presiden( Ashok Ahir and met three times during the year. The meeting scheduled for 26 July 2022 was postponed and business carried over to the nexc scheduled meeting on 25 October 2022 which had to be rearranged for 18 November 2022. Hannah Lindsay joined the committee with effett from 3 May 2022. 5.2 Board and Committee Attendance Board Audi¢ Risk and Finance and Assurance Resources Performance and Quality Ashok Ahir 819 313 Lee Yale- Helms 619 214 515 Andrew Evans 919 Mike Cavanagh 619 Quentin Howard 819 515

The Nation￿ Library of Wales Annts￿ Accounrs 2022123 Carl Williams 419 215 Gwenllian Lansdown Davies 719 114 Anwen Jones 719 Elin Royles 718 414 David Hay 919 213 ILydia Rumsey 919 414 Janet Wademan 919 414 Susan Davies 313 Elaine Treharne 619 315 Hannah Lindsay 819 Y3 Elin Royles tendered her resignation on 26 January 2023. but agreed to attend the AudiL Risk and Assurance Committee meeting on 7 March 2023. Gronw Percy attended the Board meetings on 27 January 2023 and 31 March 2023, and the AudiL Risk and Assurance Committse meeting on 7 March 2023 as an observer. 5.3 Overview of Board Performance Like many other organisations in Wale& the Librdry has now fully emerged from the pandemic but has seen significant changes to the way it serves its communities with an increased focus on digital services. The launch of the Wale5 Broadcast Archive on 16 Marth 2023 saw the opening of the first national broadcast archive in the Unitrd Kingdom. an achievement of which the Board and Executive are justifiably proud. This archive will enable users in all parts of Wales and beyond to access digitised broadcast matrrial in a ffdy which ￿￿s never possible in the pasL The Archive is underpinned by seyernl Clip Centres at various locations across Wales and will continue to grow its presence in the coming months. Ceredigion County Council invited the Librnry to submit a bid to Round 2 of the UK Levelling Up Fund. An early draft of the ambitious bid to esrablish a gallery of national significdnce was presented to Trustees by the Chief Executive and Librarian on 27 May 2022. A workshop was held on 21 July 2022 where representatives from Savills. who had scoped the application. outlined the plan to establish the above-mentioned gallery to showcase and interpret the national collections of Welsh Art and Photography. Although Trustees tjnanimously declared their support for an ipplication, ic was decided at the Board meetyftg on 23 September 2022 not co formally submic an application a5 It d5 not fully developed. At an extraordinary Board meeong on 13 December 2022. attended by representatives from Savi115 and Ceredi&Ton Counry Council. it was agreed that the Library would

The National Library of Wales Annual Accounts 2022123 continue to develop a busine$5 plan for this project in readine55 to present Ic to potential funders when opportunities arise. At the July workshop. Trustres discussed initial ideas for developing an Internotional Strategy and Fundraising Strategy, both of which will be further deyeloped by the new Director of Communications. Engagemenc and Partnerships during 2023-2024. Followtng a recommendation made in the Toil0￿d Review. a review of the knbrary's economic impact and potential as a visitor centre was undertaken by Fourth Stree[ and Truste￿ received an initial report in November 2022. The Stage 2 RePorL Impoct Fromework will be presented to the Board in June 2023. Acting on a recommendation from the Finance and Resources Committee. members debated the possibility of closing the current defined benefit pension scheme and discussed a range of p)ssible alternative options, which would be fully discussed wth sr2ff and unions. Trusttt5 received regular, updated reports on the current situation of the pension scheme from the scheme actuaries to guide them in their decision making. A decision on the vrdy forward with regard to the current pension scheme will be made in 2023-2024. Trustees considered the indepeftdent financial review of the knbrary's current financial position and its future financial sustainability underr2ken by CIPFA at their meeting on 25 November 2022. At the time the report was drafted, the Library ￿ds facing 2 substantial potential budget deficit and also the need to secure budget cover for the use of the knbrary's private reserves to help fund budget deficits. However. the Welsh Government'5 announcement of its autumn budget awarded the Library additional grant-in-aid. and a further report was commissioned from CIPFA which took into account this additional funding. This follow-up repor¢ also drafted by David Corner, wa5 discussed by Trustees at their meeting on 27 January 2023, and further discussed by the Finance and Resources Committee at its meeting on 14 February 2023. During these meetings concerns were expressed about aspects of financial planning and the need for more transparent financial information to be provided to the Board of Trustees. and it Wds agreed that the Library needed to address any weaknesses in financial management. Therefor< it was decided that a review of financial management at the Library should be undertaken. and that CIPFA. as the leading body for public finance, should be commissioned to undert2ke this ￿vIeW. against the srandards in its its Financial Management Code. The review identified a number of areas where the Librnry could improve its financial Procedu￿$. These included more detailed long term financial planning and improvements to the control environmenL The report made a number of recommendations which the Executive Team has implemented during 2023_2024 as follows: Improvement to the budgettng process and reporting of financial information to the executive tram and the Board,. Better communication of financial matters with all deFartments within the organisation; Outsourcing of key funttions such as payroll and pension scheme administration,. A restrutturing of the finance departrnent in 2024 wll also improve the delivery of umety financial information to the Executive Team and the Board. IA this respett a new Director of Finance and

The National Library of Wales Ann￿ Accounts 2022123 Corporate Servtces has been appointed and will Comple￿ the change5 required to fully implement the CIPFA recommendations. The 2023_2024 draft budget was discussed by the Board of TrLEStees at Its meeting on 27 January 2023. when the Executive Team were asked to prepare a further draft budget which aligned with the current Strategic Plan, and which paid due consideration to the financial and strategic needs of the newly established CommunitJtions, Engagement and Partnerships Directorate. The Executive Team presented a further draft of the budge[ which took the above issues into accoun( to an extraordinary meeting of the Trustees convened on 23 February 2023, which Was approved by Trustee5. Performance apprdisals of individual Trustees took place during 2022-2023, and these wll drive a training and development programme for Trustses for 2023-2024. The President's ￿rforManCe review was sjndertxken by Welsh GovernmenL There were discussions ak)ut the remuneration of TrUs￿es. following another recommendation made in the Tailored Review. however, at its M￿Ing on 25 November 2022. Trusiees unanimously agreed that considerauon of remuneration for Trustees in the current financial climatr was not advisable. It was agreed to revisit this at a latrr date if necessary. The Board is very a￿are of its responsibilities with regard to cyber security and the ever-increasing risks in this area. The Audrc, Risk and Assurnnce Committee receive detailed incident reports at each meeting, and these are escalated to the Board where necessary. Trustees are committed to supporting the Librnry's ambitious plans to become IOOYO trarbon neutral by 2030 and welcomed the plans which the Library had in place to achieve this. Energy efficienc lighting 15 now installed in around 95% of the building. Thirty elettric vehicle charging points, including rapid chargers, haye been installed in the Library grounds. and will be operational in mid-2023. Further photovolraic panels will be placed on suitable roof5, and a ground-mountrd solar array placed in a field adjacent to the Library. All the elettricity generated will be used on site. In addiuon to the abov< the Boird also considered the following matters during the year,.

Approval of a revised Board Assurance Framework 2022 Approyal of a comprehensive Trustees. Code of Conduct Approval of performance indirdtors for the 1022-2023 operational plan Approval of the statutory Annual Accounts 2021-2022 Agreed a Board work programme 2022-2023 Wales Broadcast Archive progress upda￿5 Final reporc on implementation of the Tailored Review recommendations Budget 202212023 and Draft Budget 2023-2024 Board Effectiveness Review Approval of the pay remtt 2022-23 Approval of the Educotion Strategy 2023-2026 Approval of the annual Equaltty and Diversiry report Approval of the annual Health, Safety and Welfare report Strategic Alliance with the University of Wales Trinity Saint David Upditrs on the capital building programme Opuons to address lack of storage space at the Library Corporate risk rewster

The National Litrnry of Wales Annu￿ Accounts 2022123

Performance of investments Progres5 reports against targets Set in the annual oper3tional plan Minutss of all three sr2nding coMmit￿S and the Buildings Panel S. Internal Audit The Library continued to work closely with its internal auditors. The internal audit is provided by the Welsh Government's Audit Service who comply with the Public Seccor Internal Audit Slandards. A programme of work for 2022-2023 ￿￿5 agreed by the Audi¢ Risk and Assufdnce Committee on 26 April 2022, and approved by the Chief Executive and knbrarian. The intrrnal audit service reports independendy on an annual basis on the adequacy and effettiveness of the Librdry's System of internal control, together with recommendations for improvement Reports are presented to the Audic Risk and Assurance Committee for members to ￿View and challenge the assurances provided by the Executive. The Head of Intrrnal Audit can provide only limited assurance that arrangements to secure governance, risk management and internal control are suitably designed and appSied effectively. Some significant matters require attention with moderate to high risk exposure until resolved. The principal reasons underlying thi5 opinion are the findings of the CIPFA reporo Review of the Librory's comPlIan￿ wftth the CIPFA Financiol Manogemerrt Code. which addressed the fitness-for-purpose of the LTbTrry's overall financial management and financial governance arrangements. As a consequence of the CIPFA reporL the irtternal audit plan for 2023-2024 has been updated to ensure that focused reYiew5 are undertaken in areas such as financial controls. IT controls and procurement procedures. The following audit reports were presented to the committee during 2022-2023: Pr¢xurement Follow Up Board Effectiveness Review 6. Code of Best Practice on Governance As far as the Board of Trustees and Accounting Officer are aware, there is no relevant audit information of which the Library's auditors are Unawa￿ The Board and Accounting ¢Jficer have also taken all necessary or required steps to make themselves aware of relevant audit information and to establish that the Library's auditors are aware of that information. As a re¥Tstered charity, the Library has atted in accordance with the Good Governonce Code.. A Code for the Third Sector in Woles and the Charity Commission's guides and codes of pracuce, and the Board of Trustees has ensured, again in accordance with this code of practice. that the Library has robust governan￿ arrnngements in place to promotr high performance and sa*eguard propriety and regularity. Risk Management and Controls The Library's system of intrrnal control is detailed in the Board ￿suMnce Frurnework which was reviewed and updated in 2021., minor amendmencs were made to the version approved by the Board at its meeting on 27 May 2022 to include references to the Library's new SErategy, revised terms of reference for the Audi[ Risk and Assurance Committe< change to the committee's name and reference to scrutiny of departmenr21 risk ￿gIsterS, deep dive exercises ind indiwdual risks.

The National LIb￿ry of Wales Ann￿￿ Accounts 2022123 This g'ves a structured approach for ensuring that the Board of Trustees receives the right information. which is aecurnte and relevan¢ at the right time 2nd wtth an appropriatr level of assurance attributed to each source of data. The Library's105k Nanagement Policy defines the Librnry's approach to risk and how risk management is embedded into management Pro￿sseS to ensure that the key strategic risks are effectively managed. The risk management audit which is scheduled to take place in the first half of 2023-2024 will address the concerns of the Committee and Accounting Officer with regard to obtaining the necessary assurances that processes and policies are in place to effectively manage the risks which the Librnry fa￿$, and the findings of che audit will drÉve any necessary improvements in risk management across the Library. The Board Afsuronce Fromework, Msk Monogement Strategy ond Policy, together with the corporate risk register will form part of the intrrnal audit to be underraken during 2023-2024 to ￿ve the Board of Trustees and Accounting Officer the necessary assurances that processe5 and policies are in place to effectiyely manage the risks which the Library faces. All the above documents will be revised and updated following the findings of the internal audit, and any further recommendations arising from the audit will drive any necessary improvements in risk management across the knbrdry. The corporate risk register identifies. documents. a55esses and details the key strateg'c and operational risks relating to the Library's activities. These are kept under constant review by the Execuuve Team and any other assigned risk owners and action is thken as appropriate to manage and mitigate these risks. The corporate risk regtster is underpinned by departmental risk registers. which are also kept under regular review by the Executive Team, and departmental risks are escalated ro the corporate regt$￿ where necessary. In autumn 2022 the Library adopted new risk management sofmre to record and monitor the risks facing the Library, and this provided Board members and independent members of the Audil Risk and A55urance Committee and co-opted member5 of the Finance and Resources Committee online access to the deparunental risk regisiers and corporate risk registsrs to view all risks recorded. This system enables risks to be sjpdatrd by staff, and monitored by the Executive, far more frequently than was previously the case. The ￿brary continues to closeiy monitor the lack of storage space for physical and environmentally sensitive collecuon5, and is actively looking at options to address thi& including discussions with We15h Government on the possible establishment of collaborative storage for heritage organisations. The knbrary remains cautious in its approach to managing risks in terms of its responsibilities a5 a publicly funded body, and in areas such as compliance with legislation or conditions imposed by the Welsh Governmen( it will alwdys s￿k to comply without exception. The Lsbrary continue5 to manage the risks that the significant financial challenges which it faces poses to its ability to offer pay increases co staff, meet significant increases in other running costs and to deliver on Welsh Government priorities. Intsrnal control questionnaires were completed by Heads of Deyarunents ind Directors at the year- end confirming that key elements of the Library s system of internal control We￿ in place during the year and had been working effectively w￿h1n their area of responsibility. The responses provided the Accounting Officer with an added level of assurance about the robustness of the knbrdry's control framework

The National Librdry of Wales Annual Accounts 2022123 The requirements of the Well Being of Future Generations (Wales) Act 2015 are at the heart of the Library's attivities. and this is embedded in the new strategy A Librt7ry for Wales ond the World. The impatt framework illustrates how the strateg'c well-being objectives contribute to the seven well- being goals of the Ao while the strategic plan sets out how the Library intrnds to deliver against the well-being goals. The Library ￿a5 subject to an examination by the Auditt>r General during autumn 2022 on setring its well-being objectives. The examination Considered how the Library set and published well-being objectives and how, in exercising its functions. it would take step5 to meet those objetttyes. The Library received the draft report in March 2023, and once the final report ha5 been received will discuss any recommendations and actions required wth the Board of Trustees at its meeung on 2 June 2023. No matters were raised during the year under the Whiscleblowing Policy, and no instances of fraud or corruption were recorded. Complaints were dealt with in line with our Complaints Policy. All complaints were fully investigated. and any resulting improvements or changes to working practices implemented where appropriate. 7. Information Security The Library has information security procedure5 and protocols in place to ensure the confidentiality, integrity and availability of the information that we hold and process. and to ensure compliance with the UK GDPR and Data Protection Att 2058. These include.

Information Security Policy Accepr2ble Use Policy In￿rnal policies on information security- data deletion. mobile computing. password. removable media Re-certification for Cyber Essentials I IASME accredir2ti0n was further delayed in 2022-2023 owing to resource constraints, but it is expectsd that this will be achieved during 2023-2024. AII information securiry incidents are reported to the AudiL Risk and Assurance Committee. There were no security breaches during the year which required reporting to the Inforniation Commissioner. The Library received I l Freedom of Information requests, rnnging from collection-related enquiries to management and procurement queries. All such enquiries were answered within the 20 working days allowed for a re5pon5e. 8. The Future During 2023-2024, the Librnry will strNe to deliver its strategy in the face of diminished funding but wtll continue discussions with the Welsh Government on future grant-in-aid funding and will explore other funding sources to support the achievement of our strategic aims. Moving fowdrd, the Trustees will; Consider any changes required to the existing Pension Scheme Continue to develop new public spaces as part of the Wales Broadcast Archive ac site5 beyond Aberystwyth Develop and implement a new Str(7tegic Equal￿ Plort 2022 - 2026 Develop and implement a new Communications and Engogement Stmtegy

The Natior￿1 Library of w￿e$ Annual Accounts 2022123 Is

Develop 2nd implement an International Strategy Develop and implement a Fundroisffrtgllncome Generation Strategy Implement the new Educ(rtion Strategy Develop a long-term stra￿lC plan for storage facilities Support the formation of the National Contrmpor3ry Art Gallery Agree a Memorandum of Agreement wrch Museum Wales Develop an action plan to rake forward the recommendations of the Board Effectiveness Review Implement any recommendations of the CIPFA Review of Financial Man￿eMent Implement the recommendations and findings of Audit Wales's examination of the setting of the Librnry's well-being objective5 Signed on behalf of the Board: Pedr ap LI￿d Librarian & Chief Executive & Accounting Officer 22 March 2024 Gronw Percy Treasurer 22 March 2024

The National Library of Wales Annual Accounts 2022123 16 2 OBJECTIVES AND ACTIVITIES 2.1 Primary objectives The Librdry'5 primary objective. as expressed in Supplemental Charter 2006 is:

to collecL Preserye und give ac￿SS to oll ktnds t7nd fyrn￿ of recorded knowledge. espeoolty reluting Wale5 arKI the Wekh and other Celtic peopks. for the benefft of the PubliG induding those engaged in research and leaming. The fundamental purpose and vision was to ensure that the unique history, culture and heritage of Wales. which has been documented in various forms and media over the years. is available at a15 times to enable everyone to obtxin a better undersr2nding of who we to explain the historic and culturnl herit2ge that has shaped us as a nation over the centuries. and to encourage learning and research. It ha5 two dimen5ion5 - a splendid physical buildins in Aberystwyth, housing the prin( manuscripL visual and audio-visual collettions and also a library and archives, as well as a digital presence on the intsrnet. 2.2 Public Benefit Our vision 'to deliver change for the better fr>r everyone in Wales now and in the future,, as stated in our new Stra￿lC Plan for 2021-2016, ensures that public benefit is at the core of all our acuvities. In fulfilling their duties, the Trustees have complied with settion 2 of the Charities Act 201 I by having due regard to the guidance published by the Charity Commission on pubSic benefiL While our main beneficiaries are people living in Wales, the Strateg4c Plan 'A Librnry for Wales and the World, also emphasi5es our global impatt Lx)th as a culturnl destination for vssitor5 and through our services to online users worldwide. 2.3 Main Activities Our main attivities. which are undertaken to further the charity's purposes for the benefit of the public in Wales are as follows:_ 2.3.1. Collecting: Collecting materials by legal deposits, purchase5, donations. bequesrs. exchanges, and dew)si( according to agreed collection development policies. This function is carried out through: creating as complete a collettion a5 possible, in all media, of published material relating Wales land other Celtic countries to a lesser extent), ir¢cluding elettronic and printed publications and audiolmoving image material- maintaining (mainly through legal deposits and purchases) the m05t comprehensive collection in Wales of printed materials published in the UK and Ireland, and research matsrial from other countries. developing collections of unpublished ma￿rialS relating to or deriving from Wales, including archives and artistyc work. gaining access to acquired worl processin& cataloguing and storing it in the most effective

The Naoonal knbrary of Wales Annual Accounts 2022123 2.3.2. Preserving and Conserving: Preserving and conserving the collections. This fvnttion is carried out through- ensuring environmenL Storage and handling conditions are appropriatr for continued preservation of che collecuons. intervening to actively conserve materials to arrest deteriO￿tiOn or to repair damage,. transferring information to more appropriate preservation formats. 2.3.3. Providing access and infomiation: Providing suitableleffective public access to the Library building, its collections and Servi￿5. and information about them. This funttion is carried out through: monitoring and analysis of user needs.

providing access to public spaces. collections and facilities within the building- arranging access to collection items and inforniation services for on-sitr users or Yia on-line communication for remote users,. providing easy access to catalogue5 of the Library's collecuons and elettronic resources. and to its corresponding di&tal versions. 2.3.4 Publicising and interpretin￿. Raising awareness of, and disseminating knowledge of, the Lj'brdry's work and collections. This fvnttion is carried out throu materials on the Librnry's websits: guides and publicity materia15 in paper and on-line formats. exhibitions and educationallcommunity activities derived from the collecuons, both at the Library and in other venues across Wales. events, lectures and seminars. 2.3.5. Professional collaboration: Collaborating wtth. and sometimes leadin& related professional groups. Icross and beyond Wale5. Thi5 function is carried out through: atting as a foral w)int for library and archive bodies in Wales.. working with EN)dies in Wales and beyond to pursue collaborative initiatives and partnerships in the broad herittg< culture and information sectors. and to advance professional practyce. Support functions: The core functions are supported by essent¢al management and business functions, includin[. manawng and developing sraffr. controlling and being accountable for financial resources and income generation., and maintaÉning and developing ICT infrascrutture and the Library's building and facilityes. The Library submits an Annual Operational Plan to the Welsh Government on how the activities will be delivered and t2rgets againsr these activities. Further details regarding how this strategy is derived and carried out are includwj in settion 7.

The Naoonal Library of Wales Annu￿ Accounts 2022123 18 ACHIEVEMENT AND PERFORMANCE Key highlights In 202212023 Increasingly, we have focused on improving the way individuals and communities experience our services and benefit from the work we do - improvements which will have a tangible impact on the lives of everyday people. One example is the establishment of our new Communications, Engagement and Partnerships Directorate in September 2022, which will help us to get a better understanding of what people want from us and ensure the Library becomes more relevant to more people living in Wales. During the financial year we contained to make progress on our strategic plan and in our efforts to make a marked contribution to the realisation of Welsh Governmenys Programme For Government. Focusing on We15h people's sense of belonging and collective memory, the special initiatives, and projects that we've undertaken this year include.. 3.1.1 Cultivate and care for the nation's memory The Wales Broadcast Archive Centre was launched in March 2023 offering an interactive exhibition and digital access to material that has been preserved in various formats throughout the decades. As a result, visitors can now search sound recordings of BBC radio in Wales from the 1930$ onwards, television broadcasts by the BBC and commercial broadcasters in Wale5 including HTV Wales and ITV Cymru Wales from the 1950s onwards and from 1982 - all the programmes of S4C, the first Welsh language TV channel. This ongoing project was funded by the National Lottery Heritage Fund, the We15h Government and the Library. A hundred-year-old Peace Petition signed by almost 4(J),000 Welsh Women was welcomed back to Wales. The chest and petition arrived at the National Library of Wales to a warm welcome by the people involved in the Women's Peace Petition Partnership who have worked over many years to bring it back home. This return signals the first Step in making it accessible to the people of Wales. The Library worked in conjunction with the Women's Peace Petition Partnership, the Welsh Government, and the Smithsonian in Washington DC where the chest and petition had resided since being presented to the President of the United States a century ago. The Library has continued to actively develop its collections during the year. The acquisition and processing of the Wales Broadcast Archive over the past few years culminated in the launch of the Wales Broadcast Archive. The Library has also focused on the need to diversify its collections and has started on the work of delivering three projects that support the delivery of the Anti-Racist Wales Adion Plan. The Library continues to ensure that contemporary Wales is reflected in new acquisitions. Web Archiving has allowed the Library to make good progress in this area. The Anti-Racist Art project involved the commi5sioninE of artworks by artists from minority ethnic backgrounds for acquisition to the national collections. 3.12 Lay the foundation for a knowledge economy As a knowledge organisation the Library has continued its programme of digitisation with the focus primarily this year on audio-visual material in support of the Wales Broadcast Archive. The digital services and reading room setvices alongside the enquiries and licencing service continue to support individuals and businesses in providing access to content. The work of supporting the wider knowledge infrastructure of Wales has continued with the Wici-lleoedd 11. The target of I,(X)O article5 ori towns/villages/places published to Wikipedia has been reached and the development of a beta map of Wales in Welsh has been completed.

The National Lsbrary of w￿e$ Annual Accounts 2022123 3.1.3 Be at the heart of national life The Communities of Wales project helps children in communities across Wales to embrace and celebrate the natlon's dNerse cultural heritage. The project supports the delivery of the Anti-Racist Wales Action Plan by working with schools to tell stories through the lens of the various people that have shaped modern Wales. Each project focuses on developing resources based on lived experiences, and producing learning materials that celebrate diversity and encourage anti-racist engagement. The project is currently working with local groups and schools that represent gypsy and traveller communities in Pembrokeshire, the Portuguese diaspora in Wrexham, and with the community around Cathays High School in Cardiff. As part of the Wales Broadcast Archive project the Library is opening Clip Corrkers across Wales that will offer access to an unparalleled collection of film, audio and video materials. As well as extending access these new centres will provide a hub for the Library to deliver work that develops new skills for participants. This work with volunteers. schools, Welsh learners, creative practitioners and community organisations will lead to the production of digital stories, reminiscence therapy videos. memory boxes, digital exhibitions. and new creative work that responds to the collection. The Library continues to exhibit its collections in our gallery in Haverfordwest as part of our partnership with Pembrokeshire County Q)uncil. The gallery is part of the Riverside Library development that also includes a café, an advice hub. a public library and a tourist information centre. At this venue we produce a Programme of thematic six month exhibitions, and a permanent exhibition on the history, culture and legends of Pembrokeshire. The Library also delivers a programme of events and a series of education workshops to actompany the exhibitions. 3.1.4 Empower leaming and research The Library has adopted a new Education Strategy that aims to grow the Library's education services further in order to be central to the learning journey of all children and adults in Wales. Through its work with school pupils, students and lifelong learners the Library is offering exciting experiences to our users, and wider access to our collections, in the Library building, virtually and across Wales. During the past year we have supported learning in communities across Wales and have developed new audiences through engagement and outreach work. We have also delivered Welsh Baccalaureate work focused on improving core skills and Èmployability for 16-18 year olds, and providing opportunities for them to engage with our collections. A Welsh Government funded project to produce an online dictionary of Welsh biography for children that will be published in 2023 will add to the ever-growing body of digital learning resources produced by the Library that can be used to support the delivery and development of the Curriculum for Wales. In the spring of 2022. Daniel Huws's eagerly anticipated magnum opu5, A Repertory of Welsh Manuscripts and Scribes c.800-c.1800, was published by the National Library of Wales and the University of Wales Centre for Advanced Welsh and Celtic Studies. The first volume of the Repertory offers summary descriptions of some 3,3CX) manuscripts written in Welsh between c.8(Xl and c.1800, including those written in other languages which relate to Welsh literature and learning. The second volume is a bio-bibliographical register of about 1,5CM) scribes, including anonymous ones whose hands have been recognized in two or more manuscripts, and also contains comprehensive indexes labout 250pp.I to place-names, personal names, texts and subjects in Vol. I, and a chronological index of manuscripts up to 1580. In the third volume are some 9(X) images which provide examples of the various scripts of the 600 most important scribes included in Vol. 11.

The National Library of Wales Annual Accounts 2022123 The Library in collaboration with Aberystwyth University academics have established a new Research Centre to draw on the Librarfs rich and varied collection of printed works relating to medicine and health in Wales. The Research Centre for the Literature and History of Medicine in Wales was launched at a one-day conference to be held at the National Library of Wales in November 2022. The Library is home to a substantial collection of Welsh and Welsh-interest printed works on medicine and health. The collection, which was digitised with sponsorship and support from the Wellcome Trust includes over 6,500 individual items dating back to 1740. It includes books on early medicines. herbal remedies, sanitary reports, accounts on contagious disease5, and asylum patient records. We have en$U￿d the enactment of the five ways of working of The Well-being of Future Generations (Wales) Act in order that the Sustainable Development Principle in working towards our Strategic and Well-being Objectives is observed and deployed.

The National Library of w￿eS Annual Accounts 2022123 Key Achievement Indicators The Library's performance winst its targets was reportrd to the Welsh Government in 2022-2023 as follows: Target Attainment Disrital visits Irsternational digital Yisitors to Library sites Visitors to Library sites User satisfaction - physical visits User satisfaction - di&tal visits Number of events Social prescribing referrals Number of participants in events On site volun￿er hours DigÉtal Volunteer hours Digtal education21 resour￿ published online New items with interpretation published by the Library Number of impressions across social media channels Reach of the Library's content on Wiknmedia Formal education workshops delivered Informal learning sessions Inter2Ctions with under-represented groups or organisations that represent these groups % legal deposit material processed within l O working days Number of conservation hoLtrs 1,900,000 850.000 50.000 96Y. 80% 150 20 i 0.000 1.620.934 763,826 57,517 98Y• 73% 529 25 10,628 6.064 995 14 1,761 1569.976 190,588,536 135 147 700 20 1.200 2,750,(h)o 190,000,000 80 100 20 66 90Y. 8,250 96Y. 10,502 Performance againsi Trrgets is reviewed by the Welsh Government and the Board with notes and interprer2tions being provided regarding achievements against tsrgets. We are obliged to monitor continuously and eydluate our work both quantitatively and qualttatively. Although our quantitative achievement indirators provide a snapshot of performance. the qualitative dat3 from rdse studies and narrative reports still continue to provide a more detailed snapshot. and an oppominiry to reflett on our work and enrich IL

The National Librtry of Wales Annul Accounts 2022123 FINANCIAL REVIEW FFnancial Results and Allocations The accounts are prepared under Section 9{4) of the Museums & Galleries Att 1992 in a forni dIreC￿d by Ministers of the Wdsh Government with the approval of the Treasury. The Library's ner incomel{expenditure) for the financial year were (£2,914kl (2021-2022.. £3.467k}- The Library's incoming resources totslled £17.43m (2021-2022: £18.78ml and total resources expended were £19.39m (2021-2022: £15.78m). The unrestricted public reserve decreased from £1,580k to £ 5,055 Fund balances at 31 March 2023 stood at £102.3m {31 March 2022 £83.Om). Charities Statement of Recommended Prartice The Charity Commission issued a Statsment of Recommended Prdctice (SORP) for charFties in Ottober 1995. which was most recently updated by the Charities SORP 201 S. The Librnry has complied with the SORP since publishing its 1996-1997 accounts. Valuation of Tangible Fixed Assets The Library commissioned a revaluation by Cooke and ArkwrighL Chartered Surveyors, of the Library'5 buildings and freehold land a5 at 31 March 2021. Land and buildings values are adjusted annually by indexation between each formal valuation which usually takes place every five years. Other fixed assets are not revalued nor indexed. and from 2017-2018, are held at original cost less depreciauon. Charity Reserves Policy The Charities SORP 2015 requires the Library to disclose its policy on Reserves. 4.4.1 Unrestricted Public Funds The National Library ol Wales 15 currently dependent on the Welsh Government to susrain the majority of its activities. The Librarfs Public Fund5 reserves policy is to confom) to the requirements of the Welsh Government'5 Framework DocumenL which Sets out the financial framework under which the Library is required to operate. The main requirement of the Frdmework Document in relation to reserves is that only 2% of gross Grant-in-Aid can be held as cash balance5. The ultimate effect of this will be to restritt the level of re5erYes that can be held. Low levels of reserves and working capital are parricularly difficult in time5 of financial uncertainty and mIti￿tiOn of risks would justify carrying higher levels of reserves due to the financial ouclook It is also the case that public reserves cannot be spent without informing Welsh Government so that they czn include them in their budget planning for the whole of the public sector in Wale5. 4.4.2 Restricted Public Funds Public restricted funds represent Capital and Purchase Grants received from the Welsh Government or any grant received from a public body for specific purposes. This funding is also restricted to 2% of gross Grant-in-Aid carry over in cash balance5.

The National Library of Wales Annu￿ Accounts 2022123 4.4.3 Unrestrirted Private Funds The Library's unrestritted Priva￿ funds have three main objectives: To contribute to the revenue costs of running the Library's service5. To supplemenc the Collecuons Purchase Granc co enable the Library to fulfil irs collections policy. To finance capital investment or future developments including equipmenL buildings and computer hardware and software. The level of reserves is being reviewed and monitored by the Board through the Financial Planning Committee and has been agreed in the Library s Medium Term Financial Strategy. 4.4.4 Restricted Private Funds The Library's restric￿ private funds can only be used in accordance with any stipulaied terms of each specific bequesL They can only be used for the purposes described and therefore they are only used when an item of expenditure that direcdy relatrs to the fund is approved by the Board or the funder. Investment Policy The portfolio has been invested in both equities and bonds and the amount that (an k invested in different asset classes has been set in accordance with a risk assessment The Library's attitude to risk is considered "moderate" aC￿Pting that in order to achieve higher returns than placing Cdsh in a deposit accoun¢ there will be a consequent risk in investing in bonds and equities. The Board reviews the Investment Policy and Strdtegy on an annual basis. which includes considerntion of social. environmental or ethical investments. The Library has appointed iftvestment managers, Investec Wealth & Investment, who ire responsible for investing the private fund5 FX)rtFolio. The managers have been set 2 benchmark for the performance of the investment portfolio, and in 2022-2023 a return of-5.5Yo was achieved aginst a benchmark of -2.0% {2021-2022= 5.9% against a benchmark of 7.8Y.I. The investments were managed on a discretionary basis in accordance with the requirements of the Trustee Inyestments Att 1961 and latterly the Trustee Att 2000. The performance of the portfolio is monitored and submitted regularly in the form of a report to the Financial Planning Committee and the Trustees. On 31 March 2023. the market value ofthe investments and cash ￿d$ £13.55m l£14.28m on 31 March 2022). Key risks 4.6.1 Financial planning The Library has prepared a Mid Term Financial Plan for the three years 2023-2024 to 2025-2026 which encompasses both revenue 2nd capit21 expenditure. The plan highlights the need for the Library to utilise unrestritted prirdte funds during the period to cover expecred funding deficits. Unrestricted private fund5 are available to the Board in order to manage financial risk as part of its reserves policy.

The Nauonal Library of Wales Annual Accounts 202Y23 4.6.2 Pension Scheme An attuarial valuation of the scheme was obtained on 31 March 2022. The main results of the Scherne'5 actuarial valuation at this date are as follows: The funding level at 31 March 2022 has reduced to 99% (2019: 100%). There is now a deficit of assets relative to the accrued liabilities at 31 March 2022 01 £ l.om (2019: there was a surplus of £0.3 million). The ratr of Library contributions required to meet the accrual of future service benefits, with a normal retirement age of 65, ha5 increased to 41.3% of pensionable salaries {201 *. 34.2%) With the significant changes in UK g4lt yields and investment markets that took place in Sepomber 2022, an updated assessment of the valuation position was made at 31 March 2023, which showed.. The funding level as at 31 March 2023 had reduced to 90% The funding shortfrdll at this date Wds £6.6 million The rate of Library contributions required to meet the accrual of future sermce benefits, with a normal retirement age of 65. has reduced to 22.8% of pensionable salaries. The Library has agreed to pay contributions at the rate of 22.8% of pensionable salaries from May 2023 to cover the cost of future accrual. In addition, the Library will pay a furtJ)er £45,000 per month, commencing in May 2023 and increasing each l April by the increase in the Consumer Price5 Index plus l % over the year to the previous Septrmber. until March 2038. As at l July 2017 existin8 Staff could also choose to contribute either 370 of their salary towards not having a reduction in their pension if they retire at the age of 60 or to at￿pt that the retirement age has changed to 65, and so there will be an actuarial reduction in the pension rfthey retire before this date. New members of staff after thi5 date have a normal retirement date of 65. The next actuarial Yaluation of the scheme will be undertaken on the 31 March 2025. The Board is currently considering options for futu￿ pension arrangements.

The Natyonal LibTrry of Wales Annual Accounts 2022123 SUSTAINABILITY REPORT This report has been complied in aecordance with the guidelines laid down by HM Treasury in Ptjblic SeaorAnnual Reports." Sustaina￿1￿ Reporting &idarKe. During 2022-2023. the following was achieved: 2022-2023 2021-2022 2020-2021 Water consumption Watrr consumption m3 Water consumption m3 per FTE Watrr supply costs £ Paper consumption Paper consumpt¢on in reams (external and internal) Paper consumption in reams {intrrnal use) Waste Total waste {tonnes) Reused. recycled, comFX)5ted Landfill 6,095 26.73 £25.209 6,559 30.78 £27.785 6.139 28.46 £23,110 605 281 262 199 33.37 18.66 14.71 38.99 12.21 26.78 14.17 3.55 10.62 Hazardous Reused, recycled. composted as % of total was Total disposal cost Greenhouse gas emission Tot21 emission tonnes Coi equiralent Attributable to business travel Atcributsble to energy consumption { 1,000 tCO) Electricity and Gas Attriburable to energy consumption Elettricity (kwh) Gas (kwh) Expenditure on business travel £ (Car, Train. Bus & Plane} Total energy expenditure £ 55.9% £17.756 31.3% £12.003 25.0Y. £8,344 934 1,020 2.193.141 1838,187 £24.019 2,210.485 3,019,497 £6.334 2,235,894 3,348,749 £51 £494,141 £401,447 £354.8n *FTE = full-time equivalent Note on Energf. Costs are total for the site including energy supplied to adjacent building, but consumptions are only for National Library buildings. Horticultural vrasce generated on site is composted on site. The quantity of this waste is not measured.

The National knbrary of Wales Annual Accounts 2022123 POLICIES RELATING TO STAFF Living Wage The Library has undercaken to pay the living wage as set out by the Living Wage Foundation since April 2014. Recruitment and Retention of Staff The Library can only achieve its goals through the commitment of its staff,. therefore the Library locuses on providing a staff training and development programme annually to ensure that all staff members achieve their potential. Employment of Disabled People The Library operates a non-discriminatory recruitment procedure and is alw2ys prepared co consider applications Irom, and to appoin¢ disabled persons. The Librdry makes every effort to ensure that disabled employees are provided wth the facilitie5 necessary to carry out their employment effeccively. 6.4 Consultation with Employees The Library communicates information to 5¢3ff by various methods including sraff meetings. weekly e mails. team briefing sessions. Core Brief. and regular consultation and negotiation with the Partnership Council and representatives of the national Trade Unions. The Library adopted an Internal Communication Strategy in 2016 and imp5emenration of this Strategy has provided an opportunity to develop the relationship betr4een managers and Staff. Remuneration Report The Library remunerdtes its entire staff under an agreed pay and grading systrm. The current System wa5 approved by the Library's Executive Team and agreed with the sraff unions through the collective bargaining arrangements. An independent appeals process is in place to consider grading issues. Each year. the Library, in consultation with the staff unions, considers the Library's remuneration package against extrrnal comparators, movements in the economy and any internal inequities that may have developed. From this, a pay remit or proposal is produced and this is submitted to the Welsh Government for approval and is then formally negotiated with the unions. Thi5 leads to a new pay and conditions package for the whole of the Librnry staff which is binding until the next round of negotiation. Incrementtl increase5 under the pay remit are dependent upon the Library's SYs￿M of annual appraisals. Inflationary elements contained within the agreed pay remit are automatically awarded to all members of sr2ff. The salaries ol the Chief Executive and knbrarian and the three Direttors haye been included as part of the pay remit negotrdtions in relation to all Library staff. The Chief Executive and Librarian and the three Directors have permanent contracts of eM￿oyMent. All four are ordinary members of the Librdry's pension scheme. The pay remit is approved by the Welsh Government. Membership of the Executive Team is shown on page 2 and fijrther details of the remuneration and pen5i0n benefits are shown in Note 8lcl to the accounts. The notice period for members of the Executive Team 15 3 months. Provision for compensation for early terminatson is contained within the Librnry's standard redundancy agreement

The Navonal Librnry of Wales Annual Accounts 2022123 PLANS FOR FUTURE PERIODS During 2021-2022 the Library began the implemen￿tIon of a new Strnregic Plan for 2021-2026 under the title 'A Librnry for Wales and the World,. The final version was approyed by the Board of Trustees in January 2021. It is an 2mbitiOU5 plan that provide5 a clear. coordinated and prioritised focus and direcuon for everyone involved in the organisation up to 2026. The new plan identifies four Strategic and well-being objectives:

Cultivate and care for the nation's memory Lay the foundation for a knowledge economy Be at the heart of national life Empower learning and research The Well-being of Future Generations Act was a key consideration when drafting the new Strategic Plan and the requirements of the Act have been considered when formulating plans to deliver against the objectives. Strategic Objective I Cultivate and care for the nation's memo Capturing contrmporary Wales Committed to diversiry Leading in preservatioft and management of inforniation How will we achieve this? We will develop and invest in the work of colletting and preserving digital materials in various formats We will establish a Wales Broadcast Archive that will a rich and comprehensive record of life in the 20th and 21 st Centuries We will deliver guidance and advice on conservation and raise awareness of the ri5k5 of losing the national memory in the dig'tsl age We will develop our relationships with libraries, archives. museums and others in the heritage settor as we collett the nation's memory We will foster our connecrions with ethnically diverse communities across Wales We will work with these communities as we Continue to develop our Collections Policy We will review the way in which our colleccions are described. interpreted and promoted We will invest in the cultivation and transfer of physical and digital conservation skills wtchin the Library and across the sector We will invest in the development of our technical infr2scrutture a5 a trusted home for our digital collections We will support other organisations with the preservation of digital collections We will share good practice in information managemenr conservation and collecuons development inTrrnationally

The National Librnry of Wales Annual Account$ 2022123 Strategic Objective 2 Lay the foundation for a knowledge economy How will we achieve this?

Knowledge that invigorates and inspires Creating opportunities to panicipate Improving user experience We will continually review the way we describe colSettions. to provide effecttve access and highlight 'hidden' collections We will improve access to physical collections by continuing Osjr digitisation programme We will seek opportunities to increase the use of colleccions by businesses and the creative sector We will work to ensure that information is available in an open and accessible format We will continue to offer a range of volunteering opportunities at Librdry Sites We will increase opportunlties for Yolunteering and engwng with the collections on a dI￿ra1 basi5. ussng approaches such as crowdsourcing We will support national and international participatory programmes and projects We will develop new and innoydtive ways of widening access to knowledge We will ensure that user feedback and the voice of the user are central to the development of our services We will invest in the building in Aberystwyth as a visitor destination. where visitors from Wales and the world can research, discover and enjoy Strategic Objective 3 Be at the heart of national life Connecting communities Sharing collections Promoting a global Wales How will we achieve this? We will invest in oijr relationship and connections with individuals and communities with the aim of increasing the value and impact of our colleccions and services We will establish connettions with new communities and audiences We will consider all opportunities to expand our connettions with public bodies and organisations throughouc Wales and further afield We will improve access and connections across Wales through the activities of the Wales Broadcast Archive. We will share our collectyor¢s wdely and openly with the aim of achieving the greatsst reach and deepest engagement We will develop methods and channels for atting in collaboration wth the public to jointly interpret our history and culture We wll hold exhibitions and events on themes that are timely and relevant to Wales today We will promote the Library's sites as cultural destynations We will develop and deliver an International Strategy and Collabora￿ with Welsh Government and other organisations toJ.romote Wales on a global stage

The National Library of Wales Annual Accounts 2022123 We will continue to fO￿r and strengthen our relationship with the Welsh diaspora Strategic Objertive 4 Empowering learning and research

Enabling research and innovation Supporting formal learning Promoting informal learning How will we achieve this? We will fO￿r a relationship with Higher Education Institutions and research teams intrrested in the collections We will explore and experiment with new technologies as means of enhancing access and research, supporting aspecrs such as geodata, artificial intelligence and adopting COn￿pts such as 'collections as dar2, We will collaborats with partners and stakeholders with the aim of establishing an accredited trusted digiul repository as research infrastructure We will continue to contribute to the development of the Curriculum for Wales We will continue to increase our own rnnge of digital learning resources in collaEK)ration with partners We will invest in our Services for schools and post- 16 education We will develop a programme that supports informal learning and foster skills and transfer knowledge We will increase the interpretative concent available o nline as resources for infomial learning We will explore opportunities to work in partnership to supporr informal learning in communities aeross Wales Trustees The Trus￿5 have complied with their duties to have due regard to guidance published by the Charity Commission. Auditor The Accounrs are audited by the Auditor Gener21 for Wales in accordance wtth Section 9(8) of the Museums and Galleries Acr 1992 for Wales Pedr ap Llwyd CHIEF EXECUTIVE & LIBPARIAN 22 March 2024 Gronw Percy TREASURER 22 March 2024

The National Library of WaIes Annu￿ Accounts 2022123 STATEMENT OF BOARD AND LIBRARIAN'S RESPONSIBILITIES Under Section 9{4) of the Museums and Galleries Att 1992. the Board of the National Library of Wales is required to prepare 2 st2tement of accounts for each financial year in the form and on the basis determined by Ministers of the Welsh Government with the consent of the Treasury. The accounts are prepared ro ￿ve a true and fair view of the Librarfs financial artivities during the year and of ￿5 financial position at the end of the year. In prepring the Library's accounts the Board is required to:_ Observe the accounts dirertion issued by minisr£rs of the Welsh Government including the relevant accounting and disclosure requirements, and apply them on 2 consistent basis. Make judgements and estimate5 that are reasonable and prudenL Stace whether applicable accounting standards and statements of recommended practice have been followed, and disclose and explain any material departures in the financial statements. Prepare the financial statements on a going con￿rn basis, unless it is inappropriaTr to assume that the Library will continue in operation. The Principal Accounting OfFicer for Ministers of the Welsh Government has designated the Librarian as the Accounting Officer for the Library. His or her relevant responsibilities as Accounting Officer, inclsjding his or her responsibility for the propriety and regularity of the public finances for which he or she is answerable and for the keeping of proper records, are set out in the Welsh Government's Accounting Officer Memorandum. Statsment of the Disclosure of Relevant Audit Information As far as the Accounting Officer is aware, there is no relevant audit information of which the auditors are Una￿dre. and the Accounting Officer has taken all 5tep5 that he ought co have T2ken to make himself aware of any audit information and to establish that the auditors are aware of that information. Pedr ap Llwyd CHIEF EXECUTIVE & LIBRARIAN 22 March 2024 Endorsed on behalf of the Board by Gronw Percy TREASURER 22 March 2024

The National Library of Wales Annual Accounrs 2022123 The Certificate and independent audito￿$ report of the Auditor General for Wales to the Senedd Opinion on financial statements I cerrify that I have audited the financial statrments of Nation21 Library of Wales for the year ended 31 March 2023 under secrion 9 of the Museums and Galleries Act 1992. The financial Sta￿ments comprise the Statement of Financial Activities, Balance SheeL Cash Flow Statrmenc and the related notes including the significant accounting policie5. These financial statements have been prepared under the accounting policies set out within them. 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 ind Reptjblic of Ireland and the Charities Statement of Recommended Practice (United Kingdom Generally Accepted Accounting Practice)- In my opinion, in all material respects the financial statements: give a true and fair view of the state of National Library of Wales's affairs as at 31 March 2023 and of its net income for the year then ended., have been properly prepared in accordance with United Kingdom Generally AC￿pted Accounting Prnctice- and have been property prepared in accordance with HM Treasury direcrions issued under settion 9 ofthe Museums and Galleries Att 1992. Opinion on regularity In my opinion. in all material respects, the income and expenditure recorded in the financial statements have been applied to the purposes intended by the Senedd and the financial transactions recorded in the financial statements conform to the authoritres which govern them. Basis for opinions I conducted my audit in accordance with applicable law and International Standards on Auditing in the UK (ISAS (UK)) and Prnctice Note l O 'Audit of Financial Scatements of Public Settor Entities in the United Kingdom,. My responsibilities under those Standards are further described in the auditor's responsibilities for the audit of the financial statements section of my certificate. My staff and l are independent of the National Library of Wales in accordance with the ethical requirements thac are relevant to my audit of the financial statements in the UK including the Financial Reporting Council's Ethical Stsndard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinions. Conclusions relating to going concern In auditing the financial statrments, I have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work I have performed, I have not identified any material Uncertainties relating to events or conditions thaL individually or colleccively. may cast significant doubt on the NatTonal Library of Wales's ability to continue to adopt the going concern basis of accounting for a period of at least elve months from when the financial Statements are authorised for issue. My responsibilities and the responsibilities of the Board of Trustees and Librarian as Accounting Officer with respett to going concern are described in the relevant sections of this cer(ificate.

The Narional Library of Wales Annual Accounts 2022123 Other infonnation The other information comprises the information included in the Annual Accounts other than the financial statements and other parts of the reix)rt that are audited and my auditor's report thereon. The Accounting Officer is responsible for the other information. My opinion on the financial 5taternents does not cover the other information and, except to the excent Otherw￿Se explicitly sr2ted in my repoo I do noc express any form of aSSuTrn￿ conclusion thereon. My responsibility 15 to read the other infomation and, in doing so. consider whether the other information 15 materially inconsistent with the financial ststements or knowledge obtained in the course of the audiL or otherwise appears to be Fnaterially misstated. If l identify such material inconsistrncies or apparent ￿￿terIal misstatements, l am requÉred to determine whether this gives rise to a material mi5Statement in the fin2nci21 statements themselves. If, based on the work I have performed. I conclude that there 15 a material missthtement of this other information, l am required to report thac facL I have nothing to report in this regard. Opinion on other matters Although there are no legislative requirements for a Remunerntion Repor¢ the National Library of Wales has prepared such a report and in my opinion, that part ordinarily required to be audited has been properly prepared in accordance with HM Treasury guidanc In my opinion. based on the work undertaken in the Course of my audii the information given in the Annual Report for the financial year for which the financial statrments are prepared is consistent with the financial statements and is in accordance with the applicable legal requirements. Matters on which I report by exception In the light of the knowledge 2nd understanding of the National Librnry of Wale5 and its environment obtained in the course of the audi¢ I have not identified material mi55tatements in the Annual Accounts. I have nothing to report in respect of the following matters which I report to you if, in my opinion: I have not received all of the information and explanations S require for my audiL SLrfficient accounting records have not been kept or returns adequate for my audit have not been receÈved Irom branches not visited by my team- the financi21 ststsments are not in agreement with the accounting records and retums. or information spectfied by Welsh Minister5 regarding remuneration and other transactions is not disclosed. Responsibilities of the Board of Twstees and Librarian for the financial statement5 As explained more fully in the Statement of Board of Trustees and Librarian's Respon5ibilitie& the Board and Librarian as Accounting Officer is responsible for. mainr2ining suflicient accounting records.. the preparation of the financial statements and Annual Accounts in accordance the applicable financial reporting framework and for being satisfied that they give a true and fair view: ensuring the regularity of financial transattions.

The National Library of Wales Annual AccounL8 2022123 internal controls as the Accounting Officer determines is necessary to enable the preparation of financial ststemet)t to be free from material mi55ratemen( whether due to fraud or error, and assessing National Library of Wales's ability to continue as a going concern. disclosing, as applicable. marcers related to going concern and using the going conwn basi5 of accounting unless the Accounting Officer anticipates that the services provided by National Library of Wales will not continue to be provided in the future. Auditorfs responsibilities for the audit of the financial statements My resFM)nsibility is to audi¢ certify and reporc on the financial statements in accordance with the Museums and Galleries Act 1992. My ob-iettiyes are to obtain reasonable assurance aFK)Ut whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a certificate that includes my opinion. Reasonable aSSlErnn￿ is a high level of assurance but is not a guarantee thac an audic condutted in accordance with ISAS (UK) will always detecc 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 expectrd co influence the economic decisions of users ttken on the basis of these financial statrments. Irregularities, including fraud. are InStan￿S of non-compliance with laws and regulations. I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respett of irreguLirities. including frnud. My procedures included the followin¥. Enquiring of managemen¢ the head of internal audit and those charged with governance, including obtaining and reviewing supporting documentation relating to National Library of Wales's policies and procedures Concerned with.. identifying. evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have knowledge of any attual, suspetted or alleged fraud; and the internal controls established to mitigate risks retated to fraud or non•compliance with laws and regulations. considering as an audit team how and where fraud mi8ht occur in the financial statements and any potential irsdicators of fraud. As part of this discussion, l identified potential for fraud in the following areas.. revenue recognition, and the posting of unusual journals,. obtaining an understanding of National Library ol Wales's framework of authority as well as other legal and regulatory frameworks that the National Library of VV21es operates in, focusing on those laws and regulations that had a dirett effett on the financial statements or that had a fundamental effect on the operations of National Library of Wales.. and obtaining an understanding of related parry relationships. In addition to the above, my procedures to respond to identified risks included the following. reYiewTng the financial statement disclosure5 and testingto supporting documentation to assess compliance with relevant laws and regulations discussed above.

The National Library of Wales Annual Accounts 2022/23

• enquiring of management, the Audit, Risk and Assurance Committee and legal advisors about actual and potential litigation and claims;

• reading minutes of meetings of those charged with governance;

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

I also communicated relevant identified laws and regulations and potential fraud risks to all audit team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

The extent to which my procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the National Library of Wales's controls, and the nature, timing and extent of the audit procedures performed. A further description of the auditor's responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of my auditor's report.

Other auditor's responsibilities

I am required to obtain evidence sufficient to give reasonable assurance that the expenditure and income recorded in the financial statements have been applied to the purposes intended by the Senedd and the financial transactions recorded in the financial statements conform to the authorities which govern them.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Report

I have no observations to make on these financial statements.

Adrian Crompton Auditor General for Wales 25 March 2024

I Capital Quarter Tyndall Street Cardiff, CF IO 4BZ

The National Library of w￿e$ Annual Accounts 2022123 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023 PUBUC FUNDS PRIVATE FUNDS 2022.2023 2021.2022 {as re5tatedl To £'ooo Unrestricted Re￿[c[&d Unre5triLted Resrricted Total £'ooo £'O(M) £000 £'ooo Income: Donations and Charitable acuwues Gov¥nmen¢Grdnts Oth¥ Granrs OthÈr trading activities Invesuneni inc¢Mr 16b 306 466 217 3331 15.486 708 492 278 815 353 232 492 273 Total Income 12.647 433 17.430 I&T16 Expendi¢ C05ts of rAisingknds Charff3blÈ Colkcuon Gi¥vig Acce55 & Infonnation Publioslrvg & Interprets(i Conswvark)n & PrÈferYaD¢n Governan Total ￿¥￿dI[￿re Pension finan￿ Costs Total expwdt¢UfS Net ￿InsI Ilossesl on invesrmenrs Net irftynel (expenditure) Gross rransfws be¢ween lund5 53 4297 2.378 2.841 2.621 2.184 15.307 490 15.797 5,633 1990 3,717 1943 2,453 18.903 490 19,393 (951) (1914) 3.283 3,903 2,055 3B04 1,785 15.447 330 15,777 618 832 322 269 53 45 23d 3,498 S3 19591 (579) (3,150) (7051 (3,855) 541 274 1321 242 (413) (l914) 3,467 Other rncognlsed Sau 11055ey): G￿nI (Lossl dtsposal of fixed a55ets (3) pi) Tangible Pixed ￿sets Revaluator Inde￿tion and impairm￿L Attuarial gins I Ilosk%l on ddned benefit wsK>n sthwne Total gwnsl (loss￿) NETMOVEmE￿r IN FUNDS FOR THE FINANCIAL YEAR 4336 4,236 4.751 i&oio iioio 13J801 22.243 19.329 14,155 5,345 4.817 FUND BALANCES BROUGHT FORWARD AT I APRIL 7083 83,021 7&204 FUND BALANCES CARRIED FORWARD AT 31 MARCH {17.0251 94048 15.202 &125 IOl350 83.021 All 2ctNi¢ie5 are continuing. Al recognised gain5 and losses are recorded in the Statement of Finanoal Acuviues. The notes tsn p3ge$ 38 w 61 forni part of these accounts. There is no endowmeftt rDcome or ￿)end￿Ure ¢0 report The ￿nanCial Year 2021-2022 has been rÈst3ted a5 a result of com￿"nIng the real￿d & unreali$ed gain511osses arising from invesEments.

The National Librnry of Wales Annual Accounts 2022123 BALANCE SHEET AS AT 31 MARCH 2023 31 March 2013 31 March 2022 £oo• £000 FIXED ASSETS Tangible Assets Intangible Assets Herrtage Assets Investments 10 79,320 203 23.562 13.550 73,227 270 21933 14,277 16.635 110,707 CURRENT ASSETS Stock5 Debt¢Ys 82nk 47 l868 1,986 4.901 47 1821 5.708 CREDITORS Amounts Iallsng due within one year 14 {606) 16341 NET CURRENT ASSETS 295 5,074 Provisions for knablI￿e5 & charges (500) Net 2ssets excluéing pwsion stherne 120,430 Defined benefrt pensKJn liabil 23 (18.080) 1760} NET ASSETS INCLUDING PENSION SCHEME LIABIUTY 102.350 83,021 FUNDS Public Unrestrictèj Pension Reserve Total Public Unrestritted Funds Public Restricted {exc Revaluation Re5etryel ReYdluation Reserve Private Unrestricted Privats Re5trKtsd PriYdte Re5trKod Collection5 I,oss (18.080) (17.025) 65.691 1,580 P17601 64,S82 30,357 15,202 26,121 15.615 230 7,653 7,944 102,350 83.021 The trustees have prepared the accounts in accordance with section 132 of the Charitie5 Act 2011. The not&s on pages 38 to 61 form part of these accounts. Pedr ap Llyd CHIEF EXEc￿1VE AND LIBRARIAN 22 March 2024 Gronw Percy TREASURER 22 March 2024

The National Library of Wales Annval Accounts 2022123 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023 2022-2023 2021-2022 £000 £000 £wo £000 Cash generated from operating activities 3.387 5,176 Cash flows from investing artivities: . Purchase of tangible and intangible t￿ed assets 10 12 (3.679) (338) 4,032 (4.452) (3,470) {302} 5.373 (6,6861 Purchase of heritage assets Proceeds from sale of investments Purchase of Investments Net cash provided byl(used in) investing artivities (4,437) (5.084) Increasel{Decrease) in Cash and cash equivalents in the year (1,050) 92 Cash and cash equiydlents at the W"nning of the year Toral cash and cash equivalents at the end of the year 3,159 3,067 2,109 3,159 The notes on pages 38 to 61 form part of these accounts.

The Nation￿ Librnry of w￿e$ Annual Accounts 2022123 NOTES TO THE ACCOUNTS AT 31 MARCH 2023 ACCOUNTING POLICIES The principal accounting policies adoptrd. judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: (a) Basis of preparation The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021, the Charities SORP (FRS 102}, and the 2007 Accounts Direction issued to the Library by the Welsh Government The accounts are prepared on a going concern basis. The National Library of Wales meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transactyon value unless otherwise stated in the releY&nt accounting policy note Is), The accounts meet the requirements of Accounting Stsndards issued or adopted by the Financial Reporting Council in so frdr as those requirements are appropriate. The Accounts Direction does not require the Librnry to produce a summary income and expenditure ccount or note of historical cost on surpluses or deficits. (b) Incoming Resources All income is recognised when the charity has enutlement to the funds, any performance conditions attached to the item have been met, it is Pro￿ble that the income will be received and the amount can be measured reliably. All Grant-in-Aid from Welsh Government is recognised in the Statement of Financial ActiVTties (SOFA} on a receivable basis. Other grants of a more specific nature are recognised on a receiyable ba515 when grdnt conditions are meL For legacies, entitlement 15 taken as the earlier of the date on which either-, the charity is aware that probatr has been granted, the estatr has been finalised and notification has been made by the executorlsl to the Library that a disrribution wll be made, or when a distribution is received from the esrate. Where legacies have been notified to the charity or the charity is aware of the grnnting of probate. and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if matrrial. Transfers from privatr funds a￿ accounted for after consideration of movements in working capital. Income received relating to subsequent accounting periods will be treated as deferred income. Fund Accounting Unrestritted funds (public and privatr) are available co spend on activities that further any of the general objectives of the Library. Public restricted funds rep￿sent Capital and Purchase Grants weived from the Welsh Government for specific purposes. Privatr restricted funds are funds subject to specific restrittion imposed by donors or by the purpose of the appeal. Designated funds are unrestritted fvnds of the charity which the trustee$ have decided at their discretion to set aside for a specific purpose. Private re5tritted

The NaDonal Library of Wale5 Annual Accounts 2022123 funds are donation5 which the donor has specified are to be solely used for particular areas of the Library's work or for a specific projett being undertaken by the Library. (c) Expenditure Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third parry. it is probable that setdement wll be required and the amounr of the obligation can be measured reliably. Where expenditure has been incurred in advance and relites to a later period, the accounts will only consider a pretrdyment if higher than £5,000 in value. Where expenditure Is incurred in arrears but relates to the current financial year. the accounts will only consider an accrual if higher than £5.000 in value. Expenditure is classified under the following activity headings: Cost of rnising fijnds comprises the cost of commercial cradin& fundraising eosrs and investment managemeni fees. Expenditure of charitable attivities includes the cost of mainr2ining collettion5. conservation, education 2nd exhibitions and other activities undert2ken to further the purposes of the charity. Other expenditure represents those items not falling into any other headings. (d) Investments Investments are stated at market value at the balance sheet date. Gains and losses on disposal are creditrd or charged to the Stacement of Financial Activities. Movements in the market value of investments held at Ihe year-end are also refieC￿ in that Statement in accordance with the Charities SOtiP IFRS 102). (e) Tangible and Intangible Assets Individual plant. machinery. equipment and motor vehicles CO￿ing £5.000 or more are capir21ised at cosr unless the equipment forms part ol a group of asse￿ network or projett where the Ydlue is over £5.000. Assets are depreciated over their estimated useful lives on a straight-line basis. Items of a capital nature costing less than £5.000 are not capitalised and are writtsn off in-year. Non-property assets (i.e. plant & vehicles, and fixtures, ftttings & equipment) are held at historic cost arkd not indexed as these assets have short useful economic lives or low values {or both}. This is considered to provide a more reliable, appropriate and relevant representation of the fair value of these assets. Furcher derails are provided in Note l O. Land and buildings assets are usually professionally valued every five years on the basis of their current Ydlue in exÉsting use assuming that the properties would be sold as part of a contiftuing business and are revalued using an index in the intervening period. Revaluation gains are recognised in the Statement of Financial Activities under gainslllosses) on the rerdluation of fixed assets. except to the extent to which they offset any previous wrste off of expenditure in the Statement of Financial Activities. in which ￿se the gain is reversed against the relevant expenditure heading. Revaluation losses are recognised as an expense under the relevant expenditure heading in the Statement of Finanoal Activities except to the extsnt to which they offset ar¢y previous revaluation gains. in which case the105s is shown under gainsll105ses) on the revaluation of frxed assets. Routine maintenance work in respett of these properties is noted as revenue cost in the year in which it is undertaken.

The National Library of Wales Annual Accounts 2022123 Depreciation 15 provided in full in the year of acquisition, at ratrs calculated to reduce each asset to its estimated residual value evenly over its expetted useful economic life, as advised by the valuer5 a5 follows: o Freehold building5 up to 125 years Plan( machinery and equipment up to 30 years Compyor equipment and digital development - up to l O years Motor Vehicle5 up to 5 years Freehold land 15 not depreciated. Collection Purchases are not depreciatrd (see Heritage Assets (fj). Intangible assets with an economic life of more than one year and value greater than £5,000 are capitalised. All intangible assets are measured at cost. Intangible assets are amortised on a straight-line basis over a period of l O years. (fj Heritage assets Herrtage assets are defined as assets of historic. arcistic or soentitic importance that are held to adydnce preservation. conservation and educational objectFves of charities and through public access contribute to the nation's culture and education at either a national or local level. With effett from 1st April 2001 heritage assets purchased by or donated to us have b￿n capitalised at historie costlvaluation. In accordance with Treasury accounts direction. assets acquired before l st April 2001 have not been capit21ised and in the opinion of the Trustee5 the considerable cost of valuation of the large collectson of heritage assets cannot be justified on costlbenefit grounds. Donated or part4onated assets are valued wth reference to invoices or other documentation where available, and otherwise by curatorial staff. These assets are not revalued or indexed. Heritage Assets are not depreciated because they have indefinite life. The carrying amount of an asset will be reviewed only where there 15 evidence of impairmenL (g) Stocks The cost of Stocks of re-saleable items has been recognised in the balance sheet at the lower of cost or net realisable vaSue. No valije is given on assets produced historically by the Library where there is a re5tritted market for the go(xls or goods have impaired. (h) Pension Costs The Library operdtes its own superannuation scheme which provides benef￿ based on final pensionable salary. Contributions to the scheme are charged to the sta￿rnent of Financial Acuvicies so a5 to spread the cost of pensions over employees working lives. The charge to the sts￿ment of Financial Activities is calculated based upon the current service cost as calculated by the scheme actuary. Staff holiday pay At the year end. staff holiday entidements that has not yet taken and which is carried forward to the next financial year have been provided for in the accounts in line with FRS 102 requirements.

The National Library of Wales Annual Accounts 2022123 (i) Taxation The Library has been granted charitable status by the HMRC and is therefore exempt from tax on income and gains falling within settion 505 of the Taxes Acc 1988 or section 252 of the Chargeable Gains Att 1992 to the extent that these are applied co its charitable objects. Non-recoverable Value Added Tax arising from expenditure on non-trdding activities is charged to the Statement of Pinancial Activities or ￿apitalised if reiatrd to a fixed asset (k) Significant areas of estimation and judgement The preparation of the financial statements requires judgements, estimations and assumptions to be made that affett the reported values of assets, liabilities, revenues and expenses. The nature of estimation and judgement means that actual outcomes could differ from expeccation. Sources of estimation uncertainty The defined benefit pension obligauon is recognised and disclosed in accordance with FRS 102. The valuation. prepared by 2 qualified attuary, reflects a number of judgements and estimations including che expectsd return on assets, the discount rate. cost inflation and life expectancy. Changes in these assumptions have a significant effett on the value of the defined benefit pension obligation. Further details are provided in note 23. Land and buildings assets are professionally valued periodically. The valuation is prepared by a qualified surveyor and has been prepared in accordance with the RICS Red Book Buildings have been valued on the basis of 'open market value, or 'depreciated replacement cost, and land is shown at 'existing use Ydlue,. These methods are subjett to various assumptions and judgements and changes in either could have a significant effect on the valuatÉon. Further details are provided in note 10. (i) Going Concern The Library's accounts have been prepared on a going concern basis. The Library's Board has recognised the significant revenue account deficits that have been forecast and wll be considering plans to iddress this situation. The Significant level of unrestricted public and unrestritted priydte funds reserves will ensure that the Library can continue with current activities until accion is raken to address the deficiL There are no other material yncerr2inties about the chariw s ability to continue.

The Natyonal Library of Wales Annual Accounts 2022123 GOVERNMENT GRANTS 2022-2023 £000 2021-2022 £000 Unrestricted Grant-in-Aid Restricted Capital - Purchase Grant Capir21- Wales 8roadc2st Archive Capital - General Digtal Libraries People's Collection Wales ARCW Others Total grant received from We15h Government 12,155 305 305 1,000 3.390 450 2,195 451 145 86 149 218 15,486 17,159 OTHER GRANTS 2022-2023 £000 2021-2022 £000 Restricted public fund British Film Institute National Heritage Lottery Fund - Wales Broadcast Archive National Heritage Lottsry Fund - Save Our Sounds 27 587 703 708 775 Unrestricted public fund Coronavirus Job Retrntion Scheme 40 Total other grants 708 815 During the period IApril 2021 to 31 July 2021 the Library has claimed Coronavirus Job Retention Scheme grant totalling £40k The closure of the Librdry ￿lIdIng was required under the Welsh Government response to the COVID-19 pandemic. The Library obtained support to tts application for funding under the Scheme from Welsh GovernmenL

The National Library of Wales Annual Accounts 2022123 a. INCOME FROM OTHER TRADING ACTIVITIES 2022-2023 £000 154 2021_1022 £000 59 54 Unrestrirted public income Catering Shop income Events Consultancy and SYs￿m$ Income generated from collectiorts Licensing and royalties Miscellaneous Total 23 75 55 64 492 44 90 88 353 S. ANALYSIS OF EXPENDITURE Staff Costs Other direcc Depreciation 2022- Costs and 2023 amortysation TOTAL £000 £000 2021- 2022 TOTAL £000 617 £000 624 £000 416 Cost of raising funds Charitable Expenditure Colleccion Giving Access & Inform2tK)n Publicising & Interpretation Conservation & Preservation Governance 3,359 2.175 2,865 1475 1,744 528 502 145 530 293 350 323 5,633 2,996 3,717 2,943 3,283 3.903 1055 3.804 826 12.324 1,358 4.693 269 1,886 2,453 18,903 1,785 15,447 At the start of the Financial Year 2022-2023 the Library undertook a reorganisation. This has resulted in expenditure being allocated to the different categorie5 above as compared to the previous year. 6. NET INCOMEI (EXPENDITURE) FOR THE YEAR 2022-2023 £000 1,886 52 16 54 2021-2022 £000 1.575 33 This is stated after charging. Depreciition and imortisation E￿rnal auditor'5 remuneration Internal audit fees Investment managernent fees 55

The National Library of w￿e$ Annual Accounts 2022123 7. ANALYSIS OF SUPPORT COSTS The Library initially identtfies the costs of its support funttions. It then identifie5 those costs which relate to its governance functyon. Haying identified its governance costs, the remaining support costs are apportioned between the cost of raising funds and four key charitable attiyities undertaken in the year. The support salary cost is apportioned in line with salary costs for each departmen¢ with the nor staff support cosz alltxared based on activity expendicure. £000 £000 £000 22 92 107 619 746 13 1,599 £000 £000 £000 16 34 32 308 241 10 641 £000 80 285 319 2.038 2,253 48 5,023 Exec Support Finance 18 51 65 273 439 42 45 323 320 HR ICT Building Other 49 395 358 120 149 314 836 753 880 ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES, AND THE COST OF KEY MANAGEMENT PERSONNEL (a) Total Staff Costs 2022-2023 £000 2021-2022 £000 £000 £000 Salaries and Wages Social Security Costs (including Apprenticeship Levy} Pension Cost Current Service Cost Additional pension contribution FRS 102 current service c05t adjustment 6,931 713 6,156 607 1.840 1.657 1,000 1,130 2.840 4.680 12.324 490 3,787 10,550 330 Wages as noted in note 5 FRS 102 finance interest charge {see note 23d) Total There were no agency or Short term contractors employed. 12,814 10.880

The Nauonat Library of Wales Annual Accounts 2022123 Other than the sraff noted in 8c. there were no members of staff who earned over £60,00012011- 2022- Nil). {b) Pension Scheme The Library operates a funded pension scheme which is a defined benefic pension scheme providing benefits based on final pensionable pay at a normal retirement age. Members leaving the scheme who have contributed for a period of less than 2 years will receive a refund of member's contributions. Benefits accrue at the rate of 1180th of pensionable salary for each year of service. In addition, a lump Sum equiyaleftt ro 3 years, pension is payable on retirement. Oft death, pensions a payable to the surviving spouse at a rate of hatf the member's pension. On death in service the scheme pays a lump sum benefit Medical retirement is POS5ible in the event of serious ill_health. Note 23 provides further information on the finances of the pension scheme to comply with the requirements of FRS 102. The accuarial sratrment is published in the National Library of Wales, Pension Fund Annual Accounts. Welsh Government granted in 2006-2007 a Crown Guarantee which exempts the Scheme from the Pension Protettitin Fund and the associated levy. (c) Remuneration of Executive Team Membership of the Executyye Team is noied on page 2 (Reference & Administrative Details). The Executive Team's terms and conditions is indicated in Section 6 of the Trustee Report (6.5). The Librarian's salary was 3.71 times the median salary {£27.226) of the Library, 4.18 times the 25th percentile median salary (£24,130) and 2.87 times the 75th percentile median salary1£35.1701. For 2021-22, the Librdrian's salary was 3.38 times the median salary (£28,740) of the Library, 4.18 times the 25th percentyle median salary (£23,202) 2nd 2.87 times the 75th percentile median salary (£33,817). The Librarian's salary has increased by 4% year on year, whi15t the median salary has decreased by 5%. Other senior st2ff receive 2 gross s21xry. which is determined as part of the negotiation of the pay remit for all other 5raff in the Library. The value of pension benefits is calcuEated as follows- (real increase in pension* x20) + {real increase in any lump sum ) - (contributions made by member) excluding increases due to inflation or any increase of decrease due to a transfer of pension rights. The multiplier of 20 is specified in the di5c105ure requirements. The Library has used this figure in order to comply with the guidance. This is not an amount which has been paid to an individual by the knbrary during the year,. it is a calculation which uses infornTrtion from the pension benefit tsble. These figures can be influenced by many frdCtor5 e.g. changes in a person's salary. and other valuation fattors affecting the pension scheme as 2 whole. The National Library of W21es St2ff Superannuation Scheme is a funded final Salary scheme. The accrued pensions and lump sums are the amounts that would be paid from Normal Retiremenc Da if the member left service at the relewdnt datr. The Cash Equirdlent Trdn5fer Value (C￿) is the attuarially assessed capitalised Value of the pension scheme ￿efIts. including any Addittonal Voluntary Contributions and transfer5 in of service, accrued by the member at a particular point in time. The transfer values have been calculated in accordance with the guidance noie "GN I I"

The Nation￿ Libtvy of Wales Annual Accounts 2022123 published by the Institu￿ of Attuaries and Faculry of Attuaries. The assumed rate of pritr inflation was l 0.1% {2021-2022 3.1%). The following payments were made to members of the Executive Team: 2022-2023 2021-2022135 resttEedl c w Mr P ap LNvyd Chief Executyve and ￿brar￿n 101.285 {5.300) 95,985 97.013 15.880 111893 Mr. DH Michael DirecLor and Deputy Chief Executive and Librnriaft 84.811 (15.640) 69.571 80.958 9,074 90,032 Dr O Roberts Direttor and Deputy Chief Executive and ￿brariaTr 83,868 4,186 88,054 80.958 15,984 9<942 Rhian Gibson Direttor and Deputy Chief Exe£utNe and knbrarian 47.816 13,800 61.616 Rhian Gibson was appointed from I September 2022. The Financial Year 2021-2022 has been restated as a result of correcting the real increase I {decrease} in pension.

The Naty0n￿ knbrnry of Wales AnTru￿ Accounts 202Y23 The pension entitlements of the Library's senior sraff with responsibiliry for running policy-making deparcments are disc105ed as follows-_ Cash Total L4Jmp EquiYdlent Accrued Sum at Transfer Pension Value at 3113122 Cash EguivalÈnt Transfer Value at 3113123 IncreasellDecre3sel Increasel(Decrea5el in accrued pension in lump sum of net of infiation inflavon Increase IDecreasel sn fdnsfer value net of inflation 3113123 at 3113123 MrPap Ltwyd Chief Execuvve 2nd Librnrran MrDH Michael Direcror and Deputy Chief EYeoJtive and Librarian Dro Robèrts Direttor 597.520 26,730 80,190 500,040 Q30} 171XTrl 1157.8301 708,840 2&980 86.940 557,040 (5801 {1,7501 r123,390} 284,660 13.980 41,940 149,560 850 {163,8501 Deputy Chief Execuclve brarian Rhian Gibson Director 11.330 6(K> Depu Chief ExecutNe and Librarian (d) Gifts Register The Library also operatss a gifts register. No item5 noted during the year are considered of material interest to these financial sratrments. (e) Severance There were no voluntary Severance payments accounted for in 2022-202312021122- £Nil).

The Natyonal Library of Wles Annual Accounts 2022123 (fj Board emoluments The Board. the exception of the PresidenL do not re￿1Ve any emoluments. Based on a review of similar organisations, and with the full support of Welsh Governmen¢ the Board has decided to remunerate the post of President. The President received emoluments of £16.850 during 2022-2023 Q021-2022.. £18.535}- The tot21 amount of travel, subsistence, and hospirality expended by the Library for its Board and Commit￿ members was £1,746 {2021-2022 £536}, this was claimed by 7 members12021-2022: 4 members). 9. STAFF NUMBERS The average monthSy head count was 23812021-2021.. 2191 and che average lull-time equivalent stsff employed by the Library (including casual and part-time staffj during the year were a5 follo Staff Numbers Fundraising & Trading Collettion Giving Access & Informxtion Pub5icising and Interpretation Conservaoon & Presemtion Governance Total 2022123 11.9 2021122 64.2 41.5 56.7 43.9 36.2 61.9 29.8 63.9 12.8 213.1 227.5 At the start of the Financial Year 2022-1023 the Librnry undertook a reorganisation. This has resulted in staff being alloCa￿d to the differenc categorie5 above as compared to the previous year.

The Natitsn￿ Library of Wales Annual Accounts 2022123 10. TANGIBLE AND INTANGIBLE ASSETS Tangible Assets Freehold PlanL Lxnd Fittings & & Buildings Equipment £000 £o¢x) Computer equipment Total £000 £000 Cosc & Valuation At l April 2022 Additions Disposals Indexation At 31 March 2023 70,304 2.158 3,870 978 (2411 4,463 543 {164) 78.637 3,679 14051 4,289 86,200 4.289 76,751 4,607 4,842 Depreciation At l April 2022 Charged for the year Disposals Indexation At 31 March 2023 937 1.228 2,014 198 (238} 1459 393 1164} 5.410 1,819 (402) 53 6,880 53 2,218 1.974 2,688 Net Book Value At 31 March 2023 At 31 March 2022 74,533 69.367 2,633 1.856 2,154 iO(H 79,320 73,227 The Library received a valuation as at 31 of March 2021 on the Library's freehold buildings and land by Cooke and ArkwrighL Chartered Surveyors. Their valuation was carried out in accordance with the Royal Instttution of Chartered Surveyors Appraisal and Valuation Manual. Buildings have been valued on the basis of "open market value" or'depreciated replacement cost" and land is shown at "existing use value" No buildings impaimient has been recorded since the last Ydluatiors. Freehold buildir)g valuations have been indexed according to the BCIS All-ln TPI. The carrying amount of freehold land and bLEildings under the hiscoric cost convention would be £43.425k12021-2021' £43.246k). Included wthin the Net Book Value above is £3,274k of Assets Under Construction relating to Freehold Land & Buildings (£1,916kl. Hant Fittings & Equipment {£758k} and Computer Equipment {£600k). All tangble assets were used for the furtherance of the charir2ble xctivities of the knbrdry.

The National knbrnry of Wales Annual Accounts 2022123 B. Intangible Assets Digitsl development £000 Cost At l April 2022 1.086 Additions At 31 March 2023 1,086 Amortisation At l April 2022 816 Charged for the year 67 At 31 March 2023 883 Net Book Value At 31 March 2023 203 At 31 March 2022 270

The National Library of Wales Annual Accounts 2022123 I I. INVESTMENTS 2022-2023 £000 13.427 123 13,550 2021-2022 {as restated) £000 13,958 319 14,277 Investments Cash held for investments Totsl investments Market Value at l April 2022 Acquisitions at cost Less disposals Net gainl(lossl on disposalslrevaluation Market Value at 31 March 2023 13,958 4,4S2 (4,032) (951) 13,427 12.177 6,686 {5.3731 13.958 Cash held for investment At l April 2012 IDecrease)lincrease At 31 March 2023 319 (196) 123 1,453 {1.134) 319 The historic cost of investments at 31 March 2023 was £13.196m {2021122 £12.744m). The Financial Year 2021-2022 has restaod as a result of combinin8 the realised & unrealised gainsllosses arising from investments. The assets were invested as follows: Gilts, bond5, debentures & preference Unit trusts, overseas equitie% properry & alternattve assets UK equities directly invested on UK stock market Cash To £'ooo 1,691 £'ooo 9.476 £'ooo 2,259 £'ooo 123 £'ooo 13,550 Portfolio In deciding on the returns that the Library requires from its portfolio, and the balance be￿een capital growth and income. the ￿brary is prepared to accept that there will be risks attached to the investment of funds above that of simply placing cash on deposiL The Library is prepared w accept these provided that they are within accepTrble levels. The Library's appetite for risk could best be described as "moderate". The Library is willing to accept that in order to achieve higher returns risks must be taken, but the Trustees will also consider the Library's position as a charity largely funded from government grant and consequently the standards of stewardship that are implied. The risks of investment will therefore be tempered by: Asset allocation an asset allocduon stf2tegy that does not overly expose the fijnds to variances in one Wdrricular sector of the investsnent speecrum - i.e. a balance will be Struck between the amount of LK)nds, equities, cash and other investments including properry. and UK and non-UK investments. Quality of investments- the Library will only consider high quality investments such a5 gilts and investment grade bonds or FTSE 350 equities and collectives.

The National Library of w￿e5 Annuai Accounts 202Y23 12. HERITAGE ASSETS Purchases of Heritage A55ets are capitalised at historic COSL Acquired or donated during the year. Books Subscription Picture5 Manuscripts &Maps Others Digitsl Collettions NSSAW Total £'ooo 1083 £'ooo 1861 50 £'ooo 12,863 239 291 13,393 £'ooo £'ooo 4.370 £'c￿0 376 £'ooo 22,933 338 291 23.562 At 01104122 Additions Donations At 31103123 2,127 2,911 380 4,370 381 Additions to heritage assets are statrd at cos¢ whilst donations are statrd at market value. Five Year financial summary of additions: 2022- 2023 £'ooo 44 2021- 2022 £c￿0 87 2020-2021 £000 2019-2020 £000 2018-2019 £000 51 Subscriptions Flttures Manuscripts & Maps Film and music 50 30 32 55 239 180 157 312 381 Total Additions 338 302 218 401 499 The Librdry has an agreed policy for the acquisition, preservation and management of herirage assets. A copy of the agreed policy is available on request. The Library does not loan iterns to users, but collections are accessible in the reading rooms and exhibition spaces, as well as on-line. The Library (since 1911 I has the right to receive a copy of all book5, rnagazines, newspapers and other printed material published in the UK and Ireland. It mainly collects material of Welsh and Celtic interesL Its collections currendy includ Printed material: ranging from Yny Ilwr hwnn. the first Welsh-language book (printed in 1546) to programmes of lo(al events. such as concerts and show5. Manuscripts and archives: including priceless itrm5 from the Middle Ages. such as the Book of Llandaf, the Hengwrt Chaucer manuscript and the Black Book of Carniarthen. Maps: Both antiquarian and modern and atlases, Ordnance survey maps. sea charrs. maps of farms, estate5 and tithe maps. railway and public utiSity plans. Pictures: portraying people and places in Wales includin& paintings, prints, engravings and other pittures. Photograph&. the works of Mary Dillwyn, John Thomas, D.C. Harries and Geoff Charles. Electronic resources and digital images: New and created mainly by the Librnry the collections include over 5 million images. The Wales Broadcast Archive houses 250.¢)00 hours of sound recordings 300,OCK) hours of moving images. 7 million feet of film, 200,000 items from the ITV film and TV archive and 15km unique archNe.

The Nation￿ Library of Wales Annual Accounts 2022123 13 DEBTORS- due within one year 31 March 2023 £000 45 424 390 848 1,161 2.868 31 March 2022 £000 49 823 397 Trade Debtors VAT repayment due Prepayments Other Debtors & Accrued Income Private Fund5 Accrued Income 1.084 2,821 Included within Private funds aecrued income is a balance of £1.050k which relates to a propery legacy which the Library will recetve 2 years after the grant of probate as per the terms of the will. The grant of probats was issued on the 16 April 2021 and therefore the Library will receive this estimated amounr after16 April 2023. 14 (a) CREDITORS - Falling due within one year 31 March 2023 £000 94 281 231 606 31 March 2022 £000 176 216 242 634 Trade Creditors Accruals and deferred income Holiday pay accrual 14 (b) CREDITORS- Movement on deferred income 31 March 2023 £000 83 (34) 31 March 2022 £000 423 {340) Deferred income brought forward Release from previous year Income deferred in the current year Deferred income carried forward 49 83 Deferred income relates to grants received. IS PROVISIONS FOR LIABILITIES & CHARGES During the year. the knbrary received an employment related claim from a former employee. This claim is subject to an on-going discussion betsveen both parries. A provision has been made in the accouncs in accordance with legal advice.

Thè National Library of Wales Annua5 Accounts 2022123 16 ANALYSIS OF CHARITABLE FUNDS Analysis of movements in funds- Public Atl Incoming Resource5 Other April Resources Expended Movements 2022 In Year £CK)O At31 March 2023 £000 £000 £OC4) £000 PUBLIC FUNDS Unrestricted - Public Pension Unrestrlc￿d {32,7601 1,580 {31,1801 {3.330} 11647 (11464 12,647 115,79n 18.010 (18.080) {7051 1,055 17,305 (17,025) Restricted: . Capital and digtal development Revaluation Reserve Other restricted funds Purchase grdnt funds Total restricted public funds 55.002 26,121 208 9,372 90.703 1195 {1.888} {1341 4,236 705 55,175 30,357 839 9,677 96,048 1,539 305 4.039 (1.613) {3.501 } 4.807 TOTAL PUBLIC FUNDS 59,523 16.686 119.298} 22.112 79,023 *Revaluation reserye has been calculated based on the revaluation to assets since 1999 in line with the FRS 102 requirement for sepr2te identification of revaluation reserve. Revaluations prior to 1999 are not included in this reserve. Other movements in the year £22,11 I k includ Tangible Fixed Asw Revaluation. Indexation and impairment- £4.236k Actuarial gains l (lossesF £18.0 Iok

The Nation21 Library of Wales Annual Accounts 2022123 b. PRIVATE FUNDS (including collections) Unrestrittgj Re5tritted Collection Total Total 2022- 2021-2022 2023 las restated) £000 £000 £'ooo £000 £000 Income Donations and Bequests Interest Receivable Total 160 273 433 15 291 466 278 744 217 232 449 20 291 Resources Expended Costs of raising funds Private project expenditure Net (gainllloss on investments Total 53 54 44 951 1,049 55 959 1,012 (8) 37 {468} {398) Net Incomingl (Outgoing) Resources (579) (14 291 {305) Transfers 166 132} 134 Net movement in private funds during the year 1413) (491 291 (171) 948 Brought fowdrd at l April 15,615 230 7.653 23,498 22,550 Carried Forward at 31 March 15,202 7,944 23.327 23,498 The total of priyate restricted and collettion funds represents total restricted priyatr funds of £8,125k. The Financial Year 2021-2022 has bw) restated as a result of combining the realised & unrealised gainsllosses arising from investments. ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestricted Restritted Unrestricted Restricced public public private private £'ooo £'ooo 95.155 Total £'ooo 13.354 1,848 £'ooo 8,124 £'ooo 16,633 1,985 1.812 Fixed Assets Cash at bank and in hand Other net current a55etsl {liabilitie5) Creditors of MO￿ than one year Total 136 919 893 (18.080) (18,080) (17.0251 96,048 15,202 8.125 102,3SO

The National ￿brnry of Wales Annual Accounts 2022123 18. RECONCILIATION OF NET INCOMEI (EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES 2022-2023 2021-2022 {a5 restated) £000 3,467 £000 12,914} Net incomel (expenditure) for the reporting period (a5 per the statement of financial attivities Net {Gain)ILoss on investments FRS 102 intrresc pension adjustment Depreciation and amortisation charges {Increase)l Decrease in stock Heritage asset donation5 (non-ca5h) {Increase)l Decrease in del)tors {Decrease}I Increase in creditorslprovisions Pension current service c05t adjustment Net cash flow from operating arttvities 951 490 1,886 (468) 330 1,575 {2) (158) (180) (518) 1,130 5.176 (291) {44 4n 2,840 3.387 The Financial Year 2021-2022 has been reststed as a result of combining the rea5ised & unrealised gainsllosses arising from investments. 19. ANALYSIS OF CASH AND CASH EQUIVALENTS 2022-2023 £000 1.986 123 2.109 2021-2022 £000 2.840 319 3.159 Bank account balances Bank accounts held within investments Cash and cash equivalents at 31 March 20. RELATED PARTY TRANSACTIONS The Welsh Government is regarded as a related party. During the year the Librdry received funding from the Government in the form of Grant in Aid, Purchase, Capital and Projett Grants as disclosed in note 2. Details of expendicure in respett ol tx)ard member travel. subsistence and hospitality are disclosed in Notr 81fj. Transactions and balances with the pension scheme are disclosed in Note 8. Related party transactions with Board members and members of the senior management team are noted in the table below.

The N2ti0n31 Library of Wales Ann￿￿ Accounts 2022123 2022-2023 2021-2022 Related Pa Relationshi Income nditure Debtor Creditor Income Ex enditure Debtor C￿dItOr National Lottery Heritage Fund Mr David Michael. Director of the Library is an independent member of the A¢Jdit Committee. Mr Pedr ap Llvryd, Chief Executtve of the Library 15 a Member ofthe executive Board in Wales. Mr Pedr ap Llwyd, Chief Executive of the Library is a Non-ExecutiYe Director of CCC. Dr Janet Wademan. Trustre of the Library is an independent Member of the Governance and Audit Committee at Cardiff Council. Mr Ashok Ahir. Trustee of the Library is President of the National Eisteddfod Court and Chair of the Eisteddfod Management Board Mr Lee Yale- Helms, Trustee of the Library is a Trustee of the The Chartered Institute of Public Finance & Accountsn Ms Rhian Gibson. Director of the Library (from 1st September 2022) is a Trustee of Diverse C mru Ms Meri Huw5, Trustee of the Libra 703.384 470,437 748,173 425,013 Coleg Cymraeg Cenedlaethol 1,148 Iccc) Cardiff Council {4,7381 Eisteddfod Genedlaethol 851{21,4101 The Chartered Institute of Public Finance (32,176) Accountancy Diverse Cymr {25) Aberystwyth University 1,7371111,7361 216

The National Library of Wales Annual Accounts 2022123 August 2021) is a Council Member At 31 March 2023, the Library had consolidated debtors and creditors with other Government financed bodies as follows: Debtors Creditors: due in I year £000 50 £000 1,264 87 1.517 2,868 Central Government bodies Local Government bodies Non-Government Bodies Totsl 556 606 21. FINANCIAL INSTRUMENTS- RISK DISCLOSURE The Library has no ix)rrowings and relies primarily on departmental grants for its cash requirements and is therefore not exposed to liquidiry risks. The only maierial deposit is disclosed in note I I, and all material assets and liabilities are denominated in strrling. so it is not exposed to interest rnte risk or currency risk In 2022-2023, £15.486m or 89Yo of the Library's consolidated income derived from the Welsh Government12021-2022 £17.159m or 91 Y.). The balance, £1.944m or I l %12021-2022 £1.617m or 9%) is derived from income on the Library's private fund5 (note 16b), from trading attivities (nots 41 and grants from other bodies as disclosed in Note 3 to these accounts. The Library has exposure to market risk through its investments and this is managed through portfolio diversification as well as setting the risk appetite 2nd invesrment objecrives to be used by the Fund Manager. 22. LEASES The Library made no lease payments during the year or the previous year. 23. PENSION COSTS The Library operates a defined benefit scheme with benefits accruing at the rate of1180th of pensionable salary for each year of service. The latrtt full attuarial valuation was at 31 March 2022 and it was assessed that the Scheme was 99Y. funded {2019: 1 OOY. funded). During 2022-2023. the Library contributed 27.2% of pensionible salaries and expetted employer contributions for 2023-2024 are £2.2 million.

The National Librnry of Wales Annual Accounts 2022123 (a) Development of the Net Balance Sheet Position 31 March 2023 31 March 2022 Fair value of assets (23b) Attuarial value of scheme liabilities (23c) Pension liability recognised in balance sheet 56.38 74.46 (18.08) 87.44 120.20 (32.76) (b) Changes in the fair value of plan assets Year Ended 31 Year Ended 31 March 2023 March 2022 Scheme assets at W"nning of year Benefits paid from plan assets Employer contributions Member contributions Interest income on Scheme Assets Return on scheme assets greatrrl{less} than discount rate Scheme assets at end of year- {23a) 87.44 (2.64) 1.84 0.09 1.35 (31.70) 56.38 82.45 {2.55) 2.66 0.09 1.03 3.76 87.44 (c) Analysis of changes in the Defined Benefit Obligations (DBO) Year Ended 31 March 2023 Y￿r Ended 31 March 2022 Scheme liabilities at beginning of year Interest C05t on the DBO Effett of employee services in the current period Member contributions Benefits paid from plan assets Remeasurement on the DBOI change of assumptions Scheme liabiltties at end of year- (23a) 120.20 1.84 4.52 0.09 (2.48) (49.71) 74.46 110.37 1.36 3.67 0.09 12.43) 7.14 120.20 (d) Amounts charged to SOFA ITotal Expenditure) Year Ended 31 Year Ended 31 March 2023 March 2022 Effect of employee service5 in the current period Net interest on net defined benefit liabiliryl (asset) Defined benefit cost recognised in P&L Administration costs during the period Total cost recognised in SOFA 4.52 0.49 5.01 0.16 5.17 3.67 0.33 0.12 4.12

The National knbrary of Wales Annual Accounts 2022123 (e) Actuarial Gainsl{Losses) charged to the SOFA (Other recognised gainsl{losses)) Year Ended 31 Year Ended 31 March 2023 March 2022 Return on scheme assets @reater)11¢$5 than discount rate- 31.70 (3.76) (23b) Attuartal105sllgain) arising during period- (23c) Totsl attuarial lossltsainl recognised in reserves (49.71) (18.01> 7.14 3.38 (fj Total defined benefit cost Year Ended 31 March 2023 Year Ended 31 March 2022 Total cost recogni5ed in SOFA- {23{d)) Remeasuremenc effect recognised in reserve5123(e}) Defined benefit cost 5.17 (18.01) (12.84) 4.12 3.38 7.50 (g) Reconciliation of Net Balance Sheet Position Year Ended 31 March 2023 Year Ended 31 March 2022 Net defined {liability) at beginning of year Effect of employee services in the current period (23c) Net interest on net defined benefit liabilityl {asset) Remeasurement effect recognised in reserves {23le)I Employer contributions (23b) Administrative costs {23dl (32.76) {4.52) (0.49) 18.01 1.84 (0.16) (27.92) (3.67) (0.33) (3.38) 2.66 (0.12) Scheme liabilities at end of year- (23a) (18.08) {3176) (h) Market value of Assets and Percentage of Total Scheme Assets 31 March 2023 31 March 2022 Equities Bonds Property and other Total value of assets 9.32 32.26 14.80 56.38 16.5 57.2 26.3 26.50 51.76 9.18 87.44 30.3 59.2 10.5

The National Library of Wles Annual Accounts 2022123 (i) Financial Assumptions The financial assumpuons made in order to calculate the FRS 102 disclosure requirements are as follows= 31 March 2023 %per annum 31 March 2022 %per annum Price Inflation 2.40 RaTr of Salary Increase 2.40 of increase of pensions in payment 2.40 Discount rate* 4.15 in excess of any Guaranteed Minimum Pension {GMry element prescribed by HM Treasury 2.90 2.90 1.55 The discount rate used for FRS 102 disclosures is different to that used by the ALtuary for the most recent financial assessment of the Scheme at 31 March 2021 The requirement to use the Treasury's discount rate for the FRS 102 disclosure will result in the financial position of the Scheme being assessed differently under this Measu￿ in comparison to the method used in the formal actuarial valuation of the Scheme. 24. CAPITAL COMMITMENTS At the balan￿ sheet date. the outstanding commitments are as follows: 31 March 2023 31 March 2022 £000 £000 46 1,806 312 contrac￿ - building works Contractrd - computer 4uipment Contracted - plant fitungs & equipment 59 2,118 25. POST BALANCE SHEET EVENTS There were no material F#)St balance sheet events up to the date on which the accounting statrments were authorised by the Accounting Officer on 22 March 2024, which would have eant that the accounts had to be idjusted.