London Library Annual Report 2008 - 2009
London Library Annual Report 2008 - 2009
London Library Annual Report 2008 - 2009
2008
PATRON
Her Majesty The Queen
PRESIDENT
Sir Tom Stoppard OM CBE
VICE-PRESIDENTS
Nicolas Barker OBE
14 St James’s Square Lewis Golden OBE
London SW1Y 4LG Mrs Drue Heinz DBE
Jeremy Paxman
CHAIRMAN OF THE TRUSTEES
Bill Emmott
TREASURER
James Stitt FCA
LIBRARIAN
Inez T P A Lynn BA, MLITT, MCLIP
2009
SWITCHBOARD
020 7930 7705
FAX
020 7766 4766 THE
MEMBERSHIP LONDON LIBRARY
020 7766 4720
AND THE
BOOK ENQUIRIES
020 7766 4747 LONDON LIBRARY TRUST
BOOK RENEWALS ANNUAL REPORTS AND
020 7766 4743
FINANCIAL STATEMENTS
COUNTRY ORDERS
020 7766 4740 2008-2009
WEBSITE
londonlibrary.co.uk
Vat Registration no. 239 6572 28 • London Library Charity Registration no. 312175 • London Library Trust Charity Registration no. 312175-1
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Opening Hours Closing Dates
Mondays, Tuesdays and Wednesdays The Library will be closed on the following FOR OVER 25 YEARS the London Library has Transnational Giving Europe
9.30 am – 7.30 pm inclusive dates:
benefited greatly from the work of its Earlier this year the Library gained approval to
Thursdays, Fridays and Saturdays 2009 International Friends. This is a body administered start receiving donations through Transnational
9.30 am – 5.30 pm Christmas from New York under a volunteer board of Giving Europe (TGE). TGE is a partnership of
Thursday 24 December – Monday 28
December directors, and it is registered for tax-exemption leading European foundations and associations
privileges in connection with its charitable that facilitates tax-efficient cross-border giving
2010 activities in support of the Library. Library within Europe. TGE is currently operational for
New Year’s Day
Friday 1 January members and other friends have made many donations from Belgium, Ireland, Hungary,
generous donations, and recent benefactions France, Italy, the Netherlands, Luxembourg,
Easter
have included gifts for the development Bulgaria, Germany, Switzerland, Slovakia,
Friday 2 April – Monday 5 April
project, book purchases, binding and Romania and Poland.
May Bank Holiday preservation.
Saturday 1 May – Monday 3 May If you would like information about any of
the ways of giving mentioned above, please
Spring Bank Holiday
Saturday 29 May – Monday 31 May contact:
TABLE OF CONTENTS
THE LONDON LIBRARY
Trustees, senior staff and advisers 2
Trustees’ Annual Report
Introduction 3
Public benefit 3
Performance in 2008-2009 4
Future plans 5
How can members help? 5
Financial review 6
Structure, governance and management 7
Statement of Trustees’ Responsibilities 8
Auditors’ Report 9
Financial Statements
Statement of Financial Activities 10
Balance Sheet 11
Cash Flow Statement 12
Notes 13
Donations and bequests 21
Organisational information
Membership and use 24
Ten-year financial summaries 25
TRUSTEES
(Note: numbers in brackets refer to membership of committees listed at the foot of this page)
Chairman Treasurer
Sir Thomas Legg KCB QC (to 31 March 2009) (5) James Stitt FCA (4, 5)
Bill Emmott (from 1 April 2009)
SENIOR STAFF
Librarian (Chief Executive) Inez T P A Lynn BA MLitt MCLIP
Deputy Librarian Alison Sproston BA MCLIP
Bursar Paul Hamlyn MA
Head of Development & Communications Lottie Cole MA
Fund managers (to February 2009) Fund managers (from March 2009)
AllianceBernstein Ltd Legal & General Investment Management Ltd
Devonshire House, 1 Mayfair Place, London W1J 8AJ One Coleman Street, London EC2R 5AA
GMO UK Ltd
One Angel Court, Throgmorton Street, London EC2R 7HJ
Solicitors
Clyde & Co (conveyancing) Bates Wells & Braithwaite (charity law)
51 Eastcheap, London EC3M 1JP 2-6 Cannon Street, London EC4 6YH
Linklaters (contracts)
One Silk STreet, London EC2Y 8HQ
Key to committees: 1 Books Committee 2 Building Project Steering Committee 3 Development Committee 4 Finance Committee 5 Nominations Committee
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INTRODUCTION The Library has functioned for nearly 170 years with a simple
but effective financial model based primarily on membership
The London Library is dedicated to the advancement of education, subscriptions, and the Trustees believe that this remains the right
learning and knowledge. Founded in 1841 by Thomas Carlyle one given the nature of its objectives. Fees are set in the context
and other prominent men of letters and of affairs, the Library’s of the Library’s overall budget and approved by the members at
primary purpose is to provide generations of readers and researchers their Annual General Meeting.
with the riches of a national library for use in their own homes or
workplaces. By acquiring the most important published works in the The ordinary annual fee for individuals is currently £395, while
humanities in each generation and discarding almost nothing from corporate and charitable bodies pay higher fees and nominate
its shelves, the Library has built up a collection of over one million representatives who access the Library’s facilities on their behalf.
volumes dating from the 16th century to the latest publications. For an institution which strives to be a centre of excellence in its
The Library aims to preserve and extend this extraordinary field, the Library’s fees are not high in relation to the value of the
accumulation for future as well as present generations. services it provides and a range of payment options is available.
Nevertheless there are people who need for their researches the
The Library seeks to provide the most direct and liberal access to range and depth of available material and the generous access
knowledge by maintaining a high proportion of the collection on that are the Library’s hallmark but who are unable to afford the full
open-access shelves in its Grade II-listed building in central London fee, particularly as the financial rewards from writing are generally
where the volumes may be freely browsed, with most available modest and often unreliable. In such cases our subsidiary charity,
for loan. Offering facilities conducive to reading and scholarship, The London Library Trust, can assist with top-up grants under
the Library aims to provide a prompt, reliable and courteous service the Carlyle Membership scheme, and since January 2008 the
to meet and exceed the expectations of users, perpetuating a spirit Trust’s entire annual income has been dedicated to this purpose.
of willing collaboration between users and its highly qualified and The Trustees of The London Library Trust assess each application
specialist staff. carefully since resources are necessarily limited, but do not decline
support where there is clear evidence of need. The majority of
PUBLIC BENEFIT grants paid represent a fee subsidy of between 30% and 60%.
During the financial year 220 new Carlyle memberships were
Membership is open to all. The Library’s emphasis is on serious awarded (2008: 80) bringing the total number of members in
scholarship and it aims to make its collections, services and facilities receipt of fee subsidies at 31 March 2009 to 310 or 4.4% of the
available to a broad spectrum of readers in need of them, many total membership (2008: 140 or 1.8% of the total membership).
of whom have no right of access to other loan collections of The total amount of such fee subsidies paid in the year was
comparable depth and reach, such as may be found in universities £43,525 (2008: £13,688), representing 2.0% of the Library’s total
or specialist institutes. Its status in the national heritage is well income from annual membership fees (2008: 0.9%). Further details
recognised and over the years it has absorbed special collections can be found in the Annual Report of The London Library Trust
from a number of other organisations which could no longer on pages 26 to 32.
house them. Daily or weekly reference tickets are available for
those who do not need to borrow books and do not wish to Young Person’s membership is available to anyone under the age
commit to full membership. Furthermore, items from the Library’s of 25 at half the ordinary annual rate. Separate charges are made
collection are made accessible to public library members via the for postal loans and for extra books above the standard allowance,
Inter-Library Loan scheme. but the annual fees due from each member are not dependent
on either the nature or the amount of usage made of the Library’s
Many Library members are writers, and by assisting authors in facilities by that member, which can vary considerably over time
their researches prior to publication of original work the Library as well as across the Library’s membership. Whilst many of the
contributes to the cultural enrichment of the whole nation. In this Library’s members are active writers and researchers, there are
respect it is comparable to other great institutions dedicated to many others whose usage is more occasional but who see the
the arts and culture which, if they ceased to exist, would be missed Library as a cause worth supporting precisely because of its
even by many people who make little or no direct use of them. wider public benefits.
Although not easy to measure, this is an important public benefit,
as readers who have seen the tributes to the Library and its staff In setting the Library’s objectives and planning its activities, the
in the Acknowledgements pages of countless books will be aware. Trustees have given careful consideration to the Charity Commission’s
In an age when the quantity of words available is superabundant, general guidance on public benefit and in particular to its
the Library helps to maintain the quality. supplementary guidance on advancing education and fee-charging.
LL Annual report Live 10/9/09 9:12 am Page 4
PERFORMANCE IN 2008-2009
COLLECTIONS • We added 26,115 titles (comprising 38,804 volumes) from
the old printed catalogue to the online catalogue (2008:
Our objective – To continue developing and preserving the Library’s 22,385 titles comprising 37,918 volumes).
unique accumulated collections for the benefit of present and • We added 11,250 volumes to the current catalogue in
future generations. respect of books purchased or donated (2008: 9,200).
• 82,490 books were loaned during the year (2008: 84,658) The Trustees believe that personal recommendation is the single
including 5,491 (2008: 5,053) sent through the postal most effective recruiting tool and have worked hard to this end –
loans service and 242 (2008: 127) borrowed through the they are also grateful for the efforts of other members in this
inter-library loan system on behalf of members. Some regard. In addition, a high-profile marketing event in October 2008,
67,820 (2008: 65,174) renewals were made either by hosted by the Library in conjunction with The Times, made a
members themselves online or by staff on members’ behalf significant contribution to membership recruitment. A range of
using a variety of methods. Heavy use is also made of books other events also took place, supplemented in spring 2009 with
and periodicals within the Library, and over 709 rare books a campaign of targeted magazine inserts.
not in general circulation were made available for supervised
consultation during the year (2008: 673).
• We placed and processed 23,261 requests to retrieve and
set aside material, in the course of dealing with a wide
range of enquiries from members (2008: 20,383).
• We sent 867 books to non-member public libraries on
request for the use of their own members (2008: 990).
LL Annual report Live 10/9/09 9:12 am Page 5
• 5
• Make a bequest to the Library in your will or name it as a As a result of the 2008 fee increase and continued close control
residuary legatee over expenditure budgets, the Library’s deficit on unrestricted funds
• Make a donation to the Development Project or introduce a was reduced to £44,000 (2008: £134,000) despite inflationary
potential donor or grant-making trust to the fundraising team pressure from energy costs and a larger than expected university
pay settlement (on which the Library’s salary scales are based).
As well as assisting financially you may wish to consider applying Within the totals in the table above, this core deficit is offset
to become a trustee or volunteering to help with committees. by a surplus on restricted funds of some £3 million which mainly
The Library has survived and flourished for nearly 170 years represents donations to the Development Appeal net of fundraising
because of the enthusiastic support of its members, and this will costs, and is used to finance capital expenditure on the building
continue to be critically important in the future. project. The capital expenditure does not appear on the above
summary but further details can be found in the financial statements.
• 7
The Library’s investment objective is to maintain the real value The Library is governed by no less than thirteen and no more than
of its free reserves over the long term, after utilising funds at a fifteen trustees, of whom all but the Chairman and Treasurer are
sustainable rate in response to the Library’s operational needs. elected by members from their number. The Trustees choose their
On this basis the Library’s target asset allocation for its core own Chairman and Treasurer, both of whom hold office for three
funds is 74% equities and 26% bonds and cash, with the equity years but may be re-elected immediately for one further term.
allocation split 60:40 between UK and overseas stocks. The assets
of the Library’s restricted funds, other than the Staff Benefit Fund, In accordance with the Charter, the Trustees have delegated certain
comprise only bank deposits. powers to specialist committees under agreed terms of reference,
and the membership of these may include non-trustees with
For most of the year the Library’s equity funds were held in appropriate skills and experience. The committees currently in
actively-managed pooled investment vehicles, each with a target place are the Books Committee, the Building Project Steering
to achieve a total return exceeding the relevant benchmark by Committee, the Development Committee, the Finance Committee
2% per annum. During the course of the year the performance and the Nominations Committee. The Trustees are grateful to
of both fund managers gave increasing cause for concern and the following non-trustee members for the valuable services
after a review by the Finance Committee a decision was made they provided to the specialist committees during 2008-2009:
to switch the investments to equivalent passive (tracker) funds. Richard Davenport-Hines, Jane Dorrell, James Fergusson,
The transfer to the chosen manager (Legal & General) was carried Lucasta Miller and Peter Parker (Books Committee), Tony McIntyre
out during the last quarter of the financial year. Despite the very (Building Project Steering Committee), Charles Jackson (Finance
difficult economic conditions now being experienced, the Trustees Committee) and Ruth Valentine (Nominations Committee).
continue to believe that a substantial holding of equity investments
is vital to secure future income and capital growth. Trustees other than the Chairman and Treasurer serve for four years
before retiring by rotation and are not eligible for re-election for
In addition the Library holds a substantial amount of cash on deposit, twelve months. Each year, a Nominations Committee appointed by
and although some of this needs to be available immediately to the Trustees reviews the balance of skills and experience amongst
meet working capital requirements, use has also been made of the Trustees and advertises the expertise required to the whole
term deposits where possible. This has enabled the Library to membership in the Spring issue of the Library’s magazine and
achieve a reasonable rate of return even while general interest on the Library’s website. The Nominations Committee interviews
rates have recently fallen to historic lows. candidates most closely matching the requirements before
recommending them to the Trustees as suitable candidates for
During the year the Library’s equity funds achieved an overall net election by members at the AGM. The Nominations Committee
return of -31.3% (2008: -10.6%), broadly mirroring the sharp includes a non-trustee member of the Library with specialist
falls in the markets generally. For comparison the FTSE All-Share skills and experience in the field of recruitment and governance.
index recorded a return of -32.2% over the same period. Cash
on deposit yielded a return of 4.9% (2008: 4.5%). All new Trustees are given an induction manual covering the duties
and responsibilities of trustees, all aspects of the Library’s governance
It is intended that an independent review of investment strategy and management procedures, and relevant documents of record,
will be undertaken during the coming year. including the minutes of meetings for the past year and recent
LL Annual report Live 10/9/09 9:12 am Page 8
• 9
AUDITORS’ REPORT
10 • FINANCIAL STATEMENTS
RESOURCES EXPENDED
Costs of generating funds
Costs of generating voluntary income - 219,505 219,505 322,353
Investment management fees 29,360 - 29,360 44,722
Charitable activities 3,067,703 500 3,068,203 2,719,615
Governance costs 24,681 - 24,681 29,762
NET (OUTGOING)/
INCOMING RESOURCES (44,502) 3,051,241 3,006,739 2,966,807
GAINS/(LOSSES) ON INVESTMENTS
realised 7 (1,636,346) - (1,636,346) -
unrealised 7 42,195 (10,465) 31,730 (697,710)
Actuarial (losses)/gains on
defined benefit pension scheme 11 (905,000) - (905,000) 591,000
• 11
BALANCE SHEET
AS AT 31 MARCH 2009
31 March 31 March 31 March 31 March
2009 2009 2008 2008
Note £ £ £ £
FIXED ASSETS
Tangible fixed assets 6 15,604,881 13,956,959
CURRENT ASSETS
Debtors and prepayments 8 561,787 400,963
4,093,500 2,861,886
CURRENT LIABILITIES
Creditors and accrued charges 9 (859,289) (693,153)
Representing
RESTRICTED FUNDS 10 3,089,560 1,705,862
UNRESTRICTED FUNDS
excluding pensions liability 10 19,139,750 19,153,325
12 • FINANCIAL STATEMENTS
Returns on investments
• 13
(b) Income
Annual subscriptions are recorded in the year in which they become due. Life membership fees are credited evenly over ten years.
Investment income is credited when it becomes due, and includes an estimate of the underlying income from accumulation
units which is reinvested within the pooled funds; prior year comparatives have been re-stated where necessary. Donations and
legacies to specific endowment funds are recorded appropriately, with all other donations credited to the operating fund.
(e) Pensions
The cost of providing pensions under the defined benefit scheme is charged to the Operating Fund systematically over the periods
benefiting from employees’ services, on the basis of the actuary’s recommendations and in accordance with Financial Reporting
Standard 17.
2 VOLUNTARY INCOME
2009 2008
£ £
General donations and legacies 265,762 449,722
Grant from the London Library Trust - 25,000
Donations to the Development Appeal Fund 3,215,346 3,423,886
14 • FINANCIAL STATEMENTS
3 INVESTMENT INCOME
2009 2008
(re-stated)
£ £
Income from listed investments
UK 111,945 120,590
Outside UK 44,286 49,378
Total income from listed investments 156,231 169,968
Interest from deposits 134,939 115,926
Total income from investment portfolio 291,170 285,894
Income from property 60,807 45,659
Investment income includes an estimate of the income from the underlying assets of pooled funds, reinvested automatically
within accumulation units. Comparative figures have been re-stated accordingly.
5 RESOURCES EXPENDED
5.1 Cost of generating funds 2009 2009 2009 2008 2008 2008
Direct Direct
Staff costs expenditure Total Staff costs expenditure Total
(re-stated) (re-stated)
£ £ £ £ £ £
Total cost of generating funds 137,367 111,498 248,865 143,667 223,408 367,075
LL Annual report Live 10/9/09 9:12 am Page 15
• 15
Resources expended on
charitable activities 2,077,124 991,079 3,068,203 1,946,472 773,143 2,719,615
TOTAL RESOURCES
EXPENDED 2,214,491 1,127,258 3,341,749 2,090,139 1,026,313 3,116,452
Investment management fees include both fees for investment advice and underlying charges deducted from the value of pooled
funds. Comparative figures have been re-stated accordingly.
During the year the Library undertook a full restructuring of its Reception arrangements, which were integrated with membership
administration. Staff costs under the new Membership heading thus relate to Reception services (previously included under Buildings &
Facilities Management), membership administration (previously included under Administration) and newly-recruited staff assigned
to membership promotion and development. Direct expenditure under this heading relates to advertising and promotional activities.
16 • FINANCIAL STATEMENTS
Some of the Library’s freehold property is held for investment purposes but its value is small in relation to that of the operational
property with which it is contiguous. In the opinion of the Trustees a reliable valuation of the investment element would be
difficult to obtain and the expense could not be justified.
Comparative figures have been re-stated in respect of investment income and fees on pooled funds underlying accumulation units.
Listed investments:
UK 2,031,797 2,121,909 3,036,797 2,904,685
Outside UK 1,330,000 1,268,309 2,000,000 1,828,810
• 17
8 DEBTORS
2009 2008
£ £
9 CREDITORS
2009 2008
£ £
10 ANALYSIS OF FUNDS
Restricted funds
Development Appeal Fund 669,387 3,271,148 (219,505) - (1,657,078) 2,063,952
Drue Heinz Literary Fund 1,008,529 - - - - 1,008,529
Staff Benefit Fund 27,946 98 (500) (10,465) - 17,079
18 • FINANCIAL STATEMENTS
The Trustees believe that any balance of funds described as unrestricted funds can rightfully be applied for general purposes
without restriction.
Restricted funds
The Development Appeal Fund was launched in 2004 to meet the costs of the Library’s purchase of 17-22 Mason’s Yard
(‘T S Eliot House’), its fitting out and other development works to the Library. Subsequently the Library’s Trustees agreed to charge
the accumulated costs of purchase and conversion of T S Eliot House to date of £12,223,992, including design fees, to the
Development Appeal Fund. This figure includes 2008-2009 capital expenditure totalling £1,657,078 which is shown in the table
above as a transfer between funds.
The Drue Heinz Literary Fund comprises gifts made by the Drue Heinz Foundation to yield investment income which meets the cost
of many of the Library’s book purchases. The Staff Benefit Fund has been built from gifts and investment income after expenditure.
In the year ended 31 March 2009, the contribution by the Library was £289,000 (2008: £206,000), in accordance with the
recommendations of the Fund’s actuary following the last full actuarial valuation. The expected contribution for the financial
year commencing 1 April 2009 is £337,000.
A valuation of the Fund has been prepared as at 31 March 2009 in accordance with the Financial Reporting Standards 17
‘Retirement Benefits’ (FRS17). The major assumptions used are as follows:
2009 2008
• 19
The fair value of the assets held and the expected rates of return assumed at 31 March were:
2009 2008
£ % £ %
The overall expected return on the Fund’s assets for the year commencing 1 April 2009 (net of investment expenses) is 6.4%.
This has been derived as the weighted average of the individual expected rates of return on each major category of assets.
The following amounts have been recognised in the Statement of Financial Activities as part of
Total Resources Expended:
2009 2008
£ £
The following amounts have been recognised in the Statement of Financial Activities below
Total Resources Expended as Actuarial gains and losses:
2009 2008
£ £
Actual return less expected return on pension scheme assets (1,046,000) (427,000)
Experience (loss)/gain on the scheme liabilities (97,000) 103,000
Change in assumptions underlying the present value of the scheme liabilities 238,000 915,000
20 • FINANCIAL STATEMENTS
In accordance with FRS17 the net deficit is shown as a liability in the Balance Sheet separately from other net assets.
Five-year history
As at 31 March: 2009 2008 2007 2006 2005
£000 £000 £000 £000 £000
Present value of liablities (5,459) (5,228) (5,956) (5,921) (4,791)
Fair value of assets 3,602 4,244 4,382 4,095 3,446
(Deficit)/Surplus (1,857) (984) (1,574) (1,826) (1,345)
13 EMPLOYEES
The average number of employees for the year was 60 (2008: 58). One employee received remuneration above £60,000 in 2009
(2008: 1).
LL Annual report Live 10/9/09 9:12 am Page 21
The Trustees are most grateful to all the donors listed below, who have
made contributions in the year ended 31 March 2009 either for specific
purposes or towards the general running costs of the Library:
• 23
Professor Anne Janowitz Harry Mount Major-General Peter Reid Lord and Lady Strabolgi
Kate Jenkins Peter Mountfield Kenneth Rice Geoffrey Strachan
The Jewish Museum Mummery + Schnelle Bronwen Riley Jonathan Sumption
John Buchan Society Museo Nacional del Teatro, Spain Andrew Roberts Virginia Surtees
David Jones Charlotte Nassim John Robins Sussex University Library
Denis Jones The National Gallery Andrew Robinson Lydia Syson
The Joseph Conrad Society (UK) The National Trust Lord Rodger of Earlsferry, PC Tate Gallery
Michael Katakis Nevill Keating McIlroy Gallery Susan Ronald Elwin Taylor
Jonathan Keates New Statesman Andrew Rose Neville Teller MBE
Keats Shelley Association of America Robert Noel Grace Rose V M Thomas
Keats Shelley Memorial Association Alex Noel-Tod Royal Academy of Arts Thomas Lovell Beddoes Society
Denis Keeling Sebastian Nokes Royal Agricultural Society of England Lord Thomas
Dr Margaret Kekewich Jeremiah Nolan The Royal Anthropological Institute J K Robert Thorne
Douglas Kemp Notes and Queries for Somerset The Royal Artillery Institution Peter Thorold
Susanna Kemp in memory of and Dorset Royal Collection Enterprises Ltd Ann Thwaite
Mrs Doreen Kemp Robert Ogden Royal Horticultural Society Professor Lisa Tickner
Mary Kenny Online Originals The Royal Society Thomas Timmins
The Kipling Society Professor Eric Ormsby Royal Society of Literature Count Nikolai Tolstoy
Kongelige Danske Videnskabernes Hugh O'Shaughnessy Claudia Rubenstein Patience Tomlinson
Selskab The Oscar Wilde Society The Rupert Brooke Society Tower Hamlets Library Service
Mrs Ann Laughton in memory of Österreichische Akademie der San Marco Press The Trollope Society
Guy Nicholson Wissenschaften Jem Sandford Turkish Consulate General
Dr Gordon Lawrence Barbara Ovstedal Sandilands Press Dr Barry Turner
Dr Jennie Lebel Count Stephen Palffy Dr Ann Saunders Dr Ralph Turvey
John Lee Peter Parker Commander Michael Saunders University of the Arts London
Leo Baeck Institute London Dr Erminia Passannanti Watson Peter Urbach
Jason Lever The Paul Mellon Centre for Studies Clive Saville Dr William Van der Kloot
The Library of Congress in British Art Reverend Oliver Scallan Virago Press / Little Brown Books
Fergus Linnane Anthony Payne Karsten Schubert Michael Voggenauer
Sir Michael Llewellyn-Smith Maurice Pearton The late Mary Scott Christopher Walker
Gweslan Lloyd Penguin Group UK Lord and Lady Scott Lesley Wardle
The Lobanov-Rostovsky Family Phaeton Press Shaker Media GmbH Professor Marina Warner
The Lodge of Antiquity, No 2 Andrew Phillips Ann Shearer Jeremy Warren
London Review of Books Christopher Phipps John Sheppard Wilfred Webber
Dr R T Longstaffe-Gowan Dr Jan Piggott David Sherlock Jane Weeks
Inez Lynn The Pilgrim Trust Siegfried Sassoon Fellowship Sara Wheeler
Macmillan Christopher Potter Martin Sixsmith Professor Sir Christopher White CVO
John Man Cecilia Powell Hugh Small The Wilkie Collins Society
Marc Fitch Fund Claire Powell Poppy Smith Christopher Wilkins
Jennifer Margrave Robert Powell Society of Antiquaries of London The William Shipley Group for
Anthony Martin Elizabeth Powis Society of Authors RSA History
Pamela Maryfield The Powys Society Society for Psychical Research Alyson Wilson
The Massachusetts Review Andrew Prescott The Society of Women Writers Andrew Wilson
Christopher Masters Prestel Publishing Ltd and Journalists Dr Michael Wilson
David McAlpine Julia Preston Sotheby's Rupert Winchester
Kinn McIntosh Peter Prew Dr Frances Spalding Simon Winchester
Ian McIntyre Prinz Albert Gesellschaft Margaret Sparks Donald Wintersgill
David McKie ProQuest Information & Learning Martin Spellman Stephen Wood
Giles Milton Limited Lilian Spencer George Woodcock
Dr John Monks Andrew Pulver Alison Sproston Lucy Wooding
Andrew Moody Pushkin Press Tom Stacey Joanna Woods
Professor Maureen Moran John Pym Louise Stein Mrs Charles Wrightsman
Keith Morgan Vera Quin Stephen Ongpin & Guy Peppiatt, Andrea Wulf
Richard Morris OBE Random House Fine Art The late Elizabeth Wyndham
Simon Morris Dr Tessa Ransford OBE Timothy Stevens Dr Julian Wynne
Lady Belinda Morse Isabel Raphael Francine Stock Yale University Library
Vladimir Mitrokhin Joan Reid Mark Storey Penny Young
LL Annual report Live 10/9/09 9:12 am Page 24
24 • ORGANISATIONAL INFORMATION
1
Records only books borrowed and not books used solely within the Library
2
11-month period to 31 March 2005 following change of accounting date (previously 30 April)
LL Annual report Live 10/9/09 9:12 am Page 25
• 25
LIBRARY FUNDS
Free reserves Free reserves
(excluding (including
2
Pension Pension Pension Tangible Total Total Total
Reserve) Reserve Reserve) fixed assets unrestricted restricted funds
1
Year
£000 £000 £000 £000 £000 £000 £000
2000 14,436 - 14,436 3,234 17,670 1,048 18,718
2001 13,936 - 13,936 3,297 17,233 1,045 18,278
2002 11,714 - 11,714 3,306 15,020 1,041 16,061
2003 8,839 - 8,839 3,310 12,149 1,035 13,184
2004 9,881 - 9,881 3,265 13,146 1,031 14,177
2005 5,520 (1,345) 4,175 8,001 12,176 1,729 13,905
2006 5,203 (1,826) 3,377 9,318 12,695 1,504 14,199
2007 6,021 (1,574) 4,447 11,515 15,962 1,053 17,015
2008 5,196 (984) 4,212 13,957 18,169 1,706 19,875
2009 3,535 (1,857) 1,678 15,605 17,283 3,089 20,372
1
From 1998-2004 inclusive year ended 30 April; from 2005 onwards year ended 31 March
2
Figures for 2005 onwards have been adjusted for the surplus or deficit on the Library’s Staff Superannuation Fund in accordance
with Financial Reporting Standard 17
COMMENT
Between 2000 and 2004 a combination of operating deficits and poor investment performance led to a reduction of £4.5m in free
reserves. In 2005 a further £5m was utilised to purchase T S Eliot House. In the same year the Library was required for the first time
to consolidate the results of its pension scheme under Financial Reporting Standard 17. However, the negative reserves or deficits
shown above relate to the long-term funding position of the scheme and not to immediate cash shortfalls. The increase in tangible
fixed assets since 2005 reflects the expenditure on the development project which is financed by capital fundraising and not drawn
from free reserves.
LL Annual report Live 10/9/09 9:12 am Page 26
TRUSTEES
James Fergusson
Inez T P A Lynn
James Stitt FCA
Dr Dora Thornton
The London Library Trust was established (originally as the Carlyle assistance to a wide range of applicants through the Carlyle
Trust) by a deed dated 19 February 1952, for the advancement, Membership scheme. Carlyle Membership of the Library is open
encouragement and assistance of learning by means of (1) granting to all and assistance, in the form of a subsidy from the Trust, will
sums of money towards payment of the normal subscription to normally cover 30%, or in exceptional cases 60%, of the full
the Library for those unable to afford the full subscription; annual subscription, the amount and duration of assistance being
(2) making grants for original research work at the Library; and at the discretion of the Trustees. Students generally continue to
(3) purchasing books and other documents not otherwise acquired receive Trust grants for the duration of their registered courses but
by the Library but either needed by grant holders or tending to the Trust is intended to assist any member or intending member
the promotion of learning, scholarship and education. The London who can demonstrate financial necessity and a special need of the
Library Trust aims to use its income to ensure that the facilities of Library’s resources. Many beneficiaries’ needs are not linked to
the London Library remain affordable to those of limited means formal academic study and the Trustees would encourage anyone
and that expensive but important works of scholarship or reference who might have need of a grant to seek further information from
not otherwise affordable are acquired for the collections. the Library’s membership office.
The four trustees are appointed by the Library’s Trustees; they Grants paid in support of membership fees in the year totalled
include the Librarian ex officio and at least one of the Library’s £43,525 during a time of financial hardship for many (2008:
Trustees. When trustee vacancies occur, the balance of skills and £13,688). 220 new grants were awarded, making a total of
experience among the remaining trustees is reviewed and the 310 current beneficiaries. 24 of the new grants were awarded
desired expertise is sought among the trustees or members of the to students, 85 to writers or aspiring writers; the other 101
Library as appropriate. New trustees are given an induction beneficiaries included retired academics and ‘general readers’. It is
manual covering the duties and responsibilities of trustees, the good to see how many recipients are pleased to take on the full
Deed of Trust, and all other relevant documents of record, including subscription themselves once their financial circumstances permit.
the minutes and papers from the previous year.
The Trust’s reserves are held in investments which are its main
The Trustees are responsible for the long-term well-being and source of income. The Trustees’ policy is therefore to maintain
effectiveness of the London Library Trust and make decisions on a high level of reserves so as to generate sufficient income to
the application of its resources, investment policy, and the safe- support its charitable activities in a sustainable manner.
guarding of assets. Day-to-day decisions about the awarding of
grants to individuals in support of their subscriptions and about The Trust’s investments are managed by BlackRock Merrill Lynch
the duration of such grants are delegated to the Librarian. and held in their Charinco and Charishare Common Investment
Funds. The investment objective of Charinco is to provide a high
During 2008-2009 the Trust has focused on ensuring that the level of income from a portfolio of fixed interest securities, while
Library’s facilities remain affordable to those of limited means by the objective of Charishare is to achieve capital growth from an
LL Annual report Live 10/9/09 9:12 am Page 27
• 27
The Trustees are grateful to all those who have made donations,
and in particular would like to thank the following:
STATEMENT OF TRUSTEES’
RESPONSIBILITIES
Relevant legislation requires the Trustees to prepare financial state-
ments for each financial year which give a true and fair view of
the state of affairs of the charity and of the result for the year
then ended. In preparing those financial statements, the Trustees
are required to:
• select suitable accounting policies and then apply them
consistently;
• make judgments and estimates that are reasonable and
prudent;
• state whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the financial statements;
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the charity will
continue in business.
28 • AUDITORS’ REPORT
• 29
FINANCIAL STATEMENTS
Note £ £ £ £
INCOMING RESOURCES
Donation income 2 1,410 1,800 3,210 2,001
Investment income 3 26,337 - 26,337 29,332
RESOURCES EXPENDED
Grants paid 4 41,725 1,800 43,525 38,688
Miscellaneous expenses 29 - 29 29
(LOSSES)/GAINS ON INVESTMENTS 5
unrealised (126,629) - (126,629) (35,421)
FUND BALANCES
BROUGHT FORWARD 6 664,008 - 664,008 706,813
FUND BALANCES
CARRIED FORWARD 6 523,372 - 523,372 664,008
LL Annual report Live 10/9/09 9:12 am Page 30
BALANCE SHEET
AS AT 31 MARCH 2009
2009 2009 2008 2008
Note £ £ £ £
FIXED ASSETS
Listed investments 5 531,115 657,744
CURRENT ASSETS
Debtors and prepayments - 1,685
Bank balances and cash in hand 6,580 25,465
6,580 27,150
CURRENT LIABILITIES
Creditors and accrued charges (14,323) (20,886)
Representing
• 31
(b) Income
Investment income is credited when it becomes due. Donations are recorded when received.
5 INVESTMENTS
2009 2008
£ £
5 INVESTMENTS continued
Summary of investments at the end of the year
The portfolio comprises units in the two Common Investment Funds for charities managed by
Black Rock Merrill Lynch Investment Managers, as shown below.
Cost Market value
2009 2009
£ £
6 ANALYSIS OF FUNDS
Restricted funds
Carlyle Membership - 1,800 (1,800) - -
The Accumulated Fund and the T S Eliot Centenary Fund represent accumulated gifts over the years which may be applied
without restriction to further the objects of the Trust.
Donations received specifically to provide Carlyle Memberships were fully expended during the year for that purpose.
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Opening Hours Closing Dates
Mondays, Tuesdays and Wednesdays The Library will be closed on the following FOR OVER 25 YEARS the London Library has Transnational Giving Europe
9.30 am – 7.30 pm inclusive dates:
benefited greatly from the work of its Earlier this year the Library gained approval to
Thursdays, Fridays and Saturdays 2009 International Friends. This is a body administered start receiving donations through Transnational
9.30 am – 5.30 pm Christmas from New York under a volunteer board of Giving Europe (TGE). TGE is a partnership of
Thursday 24 December – Monday 28
December directors, and it is registered for tax-exemption leading European foundations and associations
privileges in connection with its charitable that facilitates tax-efficient cross-border giving
2010 activities in support of the Library. Library within Europe. TGE is currently operational for
New Year’s Day
Friday 1 January members and other friends have made many donations from Belgium, Ireland, Hungary,
generous donations, and recent benefactions France, Italy, the Netherlands, Luxembourg,
Easter
have included gifts for the development Bulgaria, Germany, Switzerland, Slovakia,
Friday 2 April – Monday 5 April
project, book purchases, binding and Romania and Poland.
May Bank Holiday preservation.
Saturday 1 May – Monday 3 May If you would like information about any of
the ways of giving mentioned above, please
Spring Bank Holiday
Saturday 29 May – Monday 31 May contact:
PRESIDENT
Sir Tom Stoppard OM CBE
VICE-PRESIDENTS
Nicolas Barker OBE
14 St James’s Square Lewis Golden OBE
London SW1Y 4LG Mrs Drue Heinz DBE
Jeremy Paxman
CHAIRMAN OF THE TRUSTEES
Bill Emmott
TREASURER
James Stitt FCA
LIBRARIAN
Inez T P A Lynn BA, MLITT, MCLIP
2009
SWITCHBOARD
020 7930 7705
FAX
020 7766 4766 THE
MEMBERSHIP LONDON LIBRARY
020 7766 4720
AND THE
BOOK ENQUIRIES
020 7766 4747 LONDON LIBRARY TRUST
BOOK RENEWALS ANNUAL REPORTS AND
020 7766 4743
FINANCIAL STATEMENTS
COUNTRY ORDERS
020 7766 4740 2008-2009
WEBSITE
londonlibrary.co.uk
Vat Registration no. 239 6572 28 • London Library Charity Registration no. 312175 • London Library Trust Charity Registration no. 312175-1
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