Autumn 2021 Issue, Revised Financial Spread

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39

2020

Total

2019

Total

2018

Total

£000

£000

£000

£000

£000

£000

Operating Result Membership and Trading Income Less: related expenditure

2,844

2,747

2,705

(3,759)

(3,852)

(3,835)

(915)

(1,105)

(1,130)

Fundraising Activity Fundraising income Less: related expenditure

722

2,816

1,398

(434)

(398)

(340)

288

2,418

1,058

319

310

240

Gains/(losses) in the value of investments

(568)

808

(170)

Reduction/(increase) in the estimated liability of the pensions deficit under accounting standards

(382)

340

149

Net Investment income

Net movement in funds

(1,258)

2,718

147

Core Operating Deficit

Actual

Budgeted

1,000,000 900,000 800,000

859,000

700,000

736,587

600,000 500,000

557, 956

400,000 361,215

300,000

418,516

200,000 100,000 0

Core operating deficit (£s)

2022

months of the current financial year. Library usage changed markedly, accelerating recent trends. For all but a few days at the start of the pandemic, the Library maintained its postal loans service with normal postage charges waived. The Trustees are grateful to staff who provided this service. Postal loans increased five-fold, and, at nearly 23,000, represented more than half of all books loaned. Digital resources saw a significant increase in usage, with 189,000 articles accessed in JSTOR, one-third more than last year. Over 71,000 articles, an increase of two-thirds,

2021

deficit for the year was less than anticipated in the emergency budget prepared in the first weeks of April 2020. Membership grew for the third successive year with a net increase of 105, taking the total to more than 7,000 for the first time since 2014. We welcomed 1,115 new members in all categories: the most for at least 10 years. Perhaps inevitably, we saw a significant increase in members choosing not to renew: over 1,000 left us. The Trustees anticipate that the retention rate will improve and are encouraged to see a net increase of 241 members in the first four

effects will impede progress in the medium-term. We anticipate it will be well into 2022 before income from trading and events returns to pre-pandemic levels, investment income will continue to be lower than previously as the Library’s cash balances are being kept prudently higher, and there will be no further income from the JRS. The budgeted deficit for the year to March 2022 is set at £418,516 reflecting the Trustees’ continued caution. The Trustees have decided to extend by one year the goal of eliminating the operating deficit to March 2024. The Library’s strategy is otherwise unchanged: a sustainable financial position can be achieved by recruiting and retaining members, while increasing fundraising activities and controlling costs. Thanks to the support of members and the commitment of staff, the Library has fared well in the most challenging period for many decades. On behalf of the Trustees, I thank you all.

2020

The 2021 annual report tells the financial story of the Library as it navigated its way through two periods of closure and continuing restrictions: truly a year without parallel. It is now available to read on the Library’s website. While Trustees had not considered a pandemic as a specific risk to operations, they had contemplated temporary closure, as a result of fire or flood for instance, and the Library entered the pandemic with cash reserves to withstand a period of disruption. Thanks to members joining, renewing or supporting our fundraising initiatives, our operating

We have received substantial – and vital – support from donors this year. The Trustees thank everyone who has supported the Library, through the annual fund, gifts of books, Founders’ Circles, or in other ways. Of particular note is the legacy of Christopher Smith. A life member for many years, Mr Smith left his entire estate to the Library to be used for “the care and preservation of books”. Its estimated value of £1.1m has been included in the result for the year. After careful consideration of how best to apply this bequest, the Christopher Smith Fund was set up to receive his estate, from which the Trustees intend to apply £70,000 annually towards collection care. The fund’s expected life is roughly 20 years. In spite of the year’s challenges, the Library met its strategic objective to further reduce its operating deficit, which this year was £361,215. The Trustees are encouraged by its steady reduction since 2018, but consider that the pandemic’s lasting

2019

The Library’s Treasurer, Philip Broadley, reviews the 2020-21 financial year and considers the lasting effects of the pandemic on the Library’s strategic plan

were accessed from the databases subscribed to via ProQuest. In the autumn, the Library began providing access to almost 3,000 eBook titles through the OverDrive platform. Between September 2020 and March 2021, 560 members borrowed 3,187 eBooks. The Library continues to record an operating deficit (see table), albeit one decreasing in line with our strategic plan. This year it was more than offset through fundraising income and unrealised gains in asset values. Membership and trading income totalled £2,844,000, a reduction of 5% on the prior year reflecting the loss of event income and a changed mix of membership categories. Operating costs were £4,213,000, an increase of 1%. Despite careful control, significant unexpected expenditure was required to ensure compliance with government guidelines and safe operation. Fundraising income benefited from members’ contributions of more than £200,000 to the Covid appeal. During the first lockdown, over half the Library’s staff was furloughed at full pay. As part of the government’s job retention scheme (JRS) the Library received £118,000 included within fundraising income. Thanks to the marked increase in the value of stock markets over the year we report investment gains of £1,034,000. The Staff Superannuation Fund’s assets also increased by more than its liabilities, giving rise to a gain of over £700,000. Overall, the Library’s funds increased by £2,409,000 and amounted to £30.4 million, of which £5.2 million represents Endowment Funds.

2018

A Y E A R W I T H O U T PA R A L L E L


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