Company Number: 02372740 Charity Number: 1000413
BRITISH RECORD INDUSTRY TRUST (A company limited by guarantee)
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
BRITISH RECORD INDUSTRY TRUST
TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
The Trustees present their Annual Report, which includes the Directors’ Report together with the audited financial statements for the year ended 31 December 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity’s Memorandum and Articles of Association, the Charities Act 2011 and the Statement of Recommended Practice: applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable on the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
REFERENCE AND ADMINISTRATIVE DETAILS
The Trustees and officers serving during the year and since the year end are as follows;
Trustees:
T Wadsworth CBE (Appointed Chair 25 November 2020) J Craig OBE (Chair in 2020. Resigned 31 December 2020) R Broe MVO P Burger M Crowe OBE (Resigned 5 May 2020) R Dickins CBE (Resigned 27 February 2020) G Doherty C Dollimore M Hole CBE (Resigned 9 March 2020) D Kassner (Resigned 5 May 2020) K Kwaten (Appointed 24 June 2020) K Marshall (Resigned 24 June 2020) J Morrish (Resigned 5 May 2020) D Munns OBE S Presswell (Resigned 19 May 2020) W Rowe M Sannie (Appointed 24 June 2020) H Semmence D Sharpe G Taylor A Watts
The charity is registered under the charity number 1000413, and the company is incorporated with the company registration number 02372740.
Key Management Personnel:
M Crowe M Fletcher M J Olaore C Whelan
Company Secretary: K Whitehead
Registered Office:
Riverside Building County Hall Westminster Bridge Road London SE1 7JA
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BRITISH RECORD INDUSTRY TRUST
TRUSTEES’ ANNUAL REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
REFERENCE AND ADMINISTRATIVE DETAILS (CONTINUED)
Auditor:
RSM UK Audit LLP Chartered Accountants 25 Farringdon Street London EC4A 4AB
Bankers:
Coutts & Co 440 Strand London WC2R 0QS
Solicitors:
Wiggin LLP 10th Floor, Met Building 22 Percy Street London W1T 2BU
Investment Managers: Investec 2 Gresham Street London EC2V 7QP
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BRITISH RECORD INDUSTRY TRUST
TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
INTRODUCTION
Foundations
The BRIT Trust was established in 1989 by UK record labels and the wider music community. Its founding mission was to draw on the transformative power of music and the arts to do good and to enable positive life pathways for young people of all backgrounds – recognising that this can best be achieved by embracing accessibility, diversity and inclusion as key values.
Funded largely by monies raised each year by The BRIT Awards and also by the annual Music Industry Trust awards dinners (MITS), The BRIT Trust has to date made more than 230 grant commitments totalling over £27 million to a wide range of causes and charities that inspire people to realise their full potential and life chances, whatever their abilities, ethnicity, gender and sexuality.
The BRIT School
A passionate commitment to promoting education and community engagement through the social value of music and creativity has informed The BRIT Trust’s approach to much of its work over the past three decades. An early focus that remains as strong to this day was the music industry’s desire to help establish and promote a music and creative arts-led school that is free for students to use and which can nourish our music and creative industries with a pipeline of diverse young talent.
The BRIT School was born shortly after the famous Knebworth concert of 1990 where the entire lineup of music royalty from Dire Straits and Elton John to Jimmy Page, Paul McCartney and Pink Floyd generously performed for free, to support The BRIT Trust. Some thirty years later, the Croydon-based performing arts and technology school has benefitted from £14 million of BRIT Trust funding – and can take pride in having produced over 10,000 alumni, the vast majority of whom have gone on to enjoy highly productive careers in music, the arts and the wider creative industries. Among these are such celebrated former pupils as musicians Adele, Leona Lewis and Loyle Carner, to name just a few, as well as household names in film and TV such as Blake Harrison, Tom Holland and Cush Jumbo. The BRIT School and its students have made an enormous contribution to the UK culturally and economically, helping to boost its global standing in the process.
Nordoff Robbins
Another important relationship forged over its three decade history, and supported through long-term BRIT Trust funding of £8 million, is one with Nordoff Robbins – the UK’s leading independent music therapy charity whose highly skilled therapists are able to draw on the healing power of music to enrich the lives of people of all ages, with life limiting illnesses, disabilities and feelings of isolation.
Supporting Careers in the Creative Industries for All
The BRIT Trust’s abiding commitment to supporting music, arts and technology education has also found expression through funding for a brand new theatre and production space for East London Arts and Music (ELAM) – the games design, music and film and television college for 16-19 year olds situated in East London – as well as through financial backing for the BPI’s BRITs Apprentice Scheme, which since 2018 has each year given up to 10 individuals from diverse backgrounds looking to start out in the music business a high quality, paid opportunity to fast-track their careers with smallto-medium independent music companies.
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BRITISH RECORD INDUSTRY TRUST
TRUSTEES’ ANNUAL REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
INTRODUCTION (CONTINUED)
Whilst its guiding principles remain the same, in more recent years, and reflective of the growing acknowledgement of its importance within music and society more generally, the Trust has broadened its educational remit to also incorporate mental health and wellbeing. The Trust has thus been able to give vital help to a number of charities that do incredibly valuable work in this space. Charities such as Mind, which has developed programmes to encourage awareness of mental wellbeing in the workplace, and Music Support, which provides counselling for those that work in music who may struggle with addictions or with demands placed on them by their careers. Key4Life, which helps young men in prison or at risk of going there to find more positive life pathways by drawing on their love of music and by supporting them with mentoring and work placements is another example of a charity that the Trust has been able to make a difference to – the charity claims that typical reoffending rates of around 65% come down to little over 15% for those who are exposed to its programme of structured support.
Updating The Trust
The Recorded Music Business may be at the Trust’s core, but its Board and Committees reflect a broad spectrum of the music industry, with Trustees representing the UK’s major and independent record labels and distributors, record labels association the BPI, and the music publishing, management and live sectors.
A number of changes to update the structures and processes of The Trust in line with best practice governance and the seven key principles of the Charity Governance Code have been introduced within the last year. In particular, work has been undertaken to further optimise the make up, tenure and size of the board of trustees.
A more recent development is a dedicated Diversity, Equality and Inclusion Committee chaired by trustee Mulika Sannie. The committee works alongside other BRIT Trust committees that ensure improved operational accountability and transparency. These include the Audit Regulation & Compliance Committee (ARC), Grant Committee, Finance Committee and PR Committee.
Looking Forward
With particular challenges brought about by the COVID pandemic, the vital work of the Trust, now led by newly-appointed Chair Tony Wadsworth CBE, its Trustees and partners is as important as ever. The Trust will be there to meet these challenges. And it will do so by staying true to its founding principles of empowering people of all backgrounds through music and the creative arts and by supporting education and wellbeing charities that inspire them to realise their full potential and life chances, whatever their background.
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TRUSTEES’ ANNUAL REPORT (CONTINUED)
BRITISH RECORD INDUSTRY TRUST
FOR THE YEAR ENDED 31 DECEMBER 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT
The British Record Industry Trust (“BRIT Trust”) is a company limited by guarantee, formed on 17 April 1989, and is a charity registered in England and Wales, number 1000413. The company is governed by its Memorandum and Articles of Association dated 15 March 1989.
The Trustees are appointed by the Board of Trustees. The Trust’s Articles of Association require that there be no less than three members of the Trust at any point in time. The membership of the Board is largely made up of representatives of the music industry and associated companies.
Trustee meetings are held at least three times a year to consider grants and applications for funding, to review the financial performance of the investment portfolio and to monitor the administration of the Trust. The day to day management and administration was provided by BPI (British Recorded Music Industry) Limited (“BPI”), managed by Maggie Crowe, Mark Fletcher and Christy Whelan and financial reporting was managed by MJ Olaore.
The Trust also holds a 50% stake in Music Industry Trusts Limited and receives an annual donation from the profits of Music Industry Trusts Limited.
TRUSTEE INDUCTION AND TRAINING
The majority of Trustees are longstanding members of the music industry and are already familiar with the practical work and objectives of the Trust. Subject to COVID-19 restrictions, new Trustees are encouraged to visit events and locations of beneficiaries of the Trust throughout the year to gain a broader understanding of the Trust’s work. Trustees are updated on legal and best practice developments in charity law and company law by the Trust’s secretariat, at board and committee meetings and by e-mail.
KEY MANAGEMENT PERSONNEL
Key management personnel are employed by BPI and they provide multiple services to the Trust. Their contribution to the Trust would be impractical to measure because of the lack of a market comparator price for the general provision of key management services and consequently is not measured.
RELATED PARTY TRANSACTIONS
Related party transactions are disclosed within note 10.
RISK MANAGEMENT
The Trust has implemented a Risk Register following Charity Commission guidelines, which is subject to regular review by Trustees. The Trust’s Audit, Regulation and Compliance Committee (‘ARC Committee’) supports Trustees in their responsibilities for ensuring the adequacy of risk management and to ensure that the Trust is considering risk and compliance on an ongoing basis. The Trustees have adopted the Charity Governance Code and are committed to following its principles as an indicator of best practice. ARC Committee assesses the Trust’s performance against the Code to ensure its principles are being applied and to identify areas of focus.
The Trustees consider underperformance from investment portfolios as the charity’s major risk. Further, as the main income for the Trust in any given year is customarily received from the BRIT Awards Limited, the economic climate can impact on that company’s financial success and is also a significant risk to the Trust. The potential impact of COVID-19 on the Trust’s activities in 2021 and beyond is considered on page 8.
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TRUSTEES’ ANNUAL REPORT (CONTINUED)
BRITISH RECORD INDUSTRY TRUST
FOR THE YEAR ENDED 31 DECEMBER 2020
As the Trust is small, with few transactions, the trustees have adopted suitable internal controls to minimise the risks to which the charity is exposed. Internal control risks are minimised by procedures for the authorisation of all transactions.
Investment decisions were delegated to professional independent investment managers, whose performance was reviewed quarterly against Asset Risk Consultants’ ARC Sterling Steady Growth Index and at Trustee meetings. A sub-committee of the Board monitors the Trust’s invested assets on a regular basis and reports regularly to the Board.
In order to further manage risk and ensure that the Trust’s grant-making is impactful, the Trust formed a Grant Making Committee to undertake the due diligence of potential beneficiaries, make grant recommendations to the Board and to monitor the delivery and public benefit of organisations supported by the Trust.
OBJECTIVES AND ACTIVITIES AND PUBLIC BENEFIT
The object of the Trust, as set out in the Memorandum and Articles of Association, is the promotion of such exclusively charitable objects as the Trust may from time to time see fit. The mission of the Trust is improving lives through the power of music and the creative arts . The Trust achieves this by working with organisations that encourage young people in the exploration and pursuit of educational, cultural or therapeutic benefits emanating from music. The mission and objectives are met through making grants to organisations undertaking activities aligned with the mission of the Trust.
The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit, reviewing the Trust’s aims and objectives and in planning future activities and setting the grant making policy for the year. Each year, the Trust makes a careful judgement between investing in grants and building reserves to meet future needs and challenges.
Since its inception, over £26.4 million has been donated by the Trust to various organisations. Its principal beneficiaries are The BRIT School and Nordoff Robbins Music Therapy (‘Nordoff Robbins’). It is the Trustees’ intention to donate to the principal benficiaries in future years subject to sufficient reserves being available.
ACHIEVEMENTS AND PERFORMANCE
During the year, the Trust contributed £452,000 (2019: £562,000) towards the costs of The BRIT School. The BRIT School is a non fee-paying state school based in Croydon created in co-operation with the Department for Education. The School had its first intake of students in September 1991 and provides a curriculum of academic and performing arts subjects for its students. The BRIT Trust, the sponsor for the School, has donated over £13.7 million to date to largely capital projects to enable delivery of music, film, theatre, dance, digital design, community arts, visual arts and design, production and performing arts as well as a full academic programme of GCSEs and A Levels.
The Trust donated a further £651,350 (2019: £579,614) to other projects during the year, which included £542,450 (2019: £400,000) to Nordoff Robbins, the UK’s leading independent provider of music therapy services. The BRIT Trust has donated over £7.6 million to Nordoff Robbins to date.
During the year, the Trustees have made grants to 9 organisations to further the stated aims of the Trust. Grants payable in the year range from £2,500 to £542,450 (2019: £7,500 to £562,000) and totalled £1,103,350 (2019: £1,141,614). Details of grants payable are given in note 5 to the financial statements.
The Trust continues to be funded principally by BRIT Awards Limited and Music Industry Trusts Limited. BRIT Awards Limited contributed £1,190,000 in the year (2019: £1,205,000).
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BRITISH RECORD INDUSTRY TRUST
TRUSTEES’ ANNUAL REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
The Trust is run from the offices of BPI which also provides staff to administer the Trust. No charge is made in respect of this service. BPI recharges the Trust with expenses incurred specifically on its behalf. The Trustees do not receive remuneration for their services. The balance at year-end due to BPI was £Nil (2019: £Nil).
FINANCIAL REVIEW
The results of the charity for the year are shown in detail in the Statement of Financial Activities on page 10. In summary, the Trust’s total incoming resources were £1,686,694 (2019: £1,862,803) of which £306,705 (2019: £418,366) was from investment income.
Resources expended in the year totalled £1,176,569 (2019: £1,229,299).
Income from investments is of significant importance to the Trust, as this supplements funding from the BRIT Awards Limited and Music Industry Trusts Limited. In the investment portfolios, the net movement in funds is a loss of £207,276 (2019: gain of £1,526,526).
GRANT-MAKING POLICY
The Trust meets its objectives through the giving of grants and has a long standing relationship with a number of entities that receive funding each year. In addition, the Trust will also consider grants to other charitable organisations that fit the mission statement of the Trust.
The Trust invites grant applications from organisations through the BRIT Trust website and other referrals. Applicants will submit an application form, which details information about the organisation, including financial requirements, aims and a description of benefit that the grant would provide.
After meeting the larger commitments of The BRIT School and Nordoff Robbins, if possible, it is the Trustees’ policy to make a number of smaller donations to support charitable organisations and activities. Grant applications for such organisations are initially reviewed by the Grant Making Committee and then presented for consideration and approval by Trustees.
FUNDRAISING
The Trust understands that donor confidence is essential to maintaining a sustainable relationship. The Trust has a longstanding relationship with the organisers of BRIT Awards and Music Industry Trusts and trustees receive year round updates on the delivery and performance of events as well as having an awareness of the guiding principles of the Fundraising Regulator’s Code of Fundraising Practice. Further, in order to ensure the Trust is compliant with the appropriate standards, a Commercial Participator Agreement is in place with BRIT Awards Limited, which is considered and monitored by the Trust. The Trust has not received any complaints about our fundraising activities and are not aware of any breaches of fundraising regulations by the Trust or any person acting on its behalf.
INVESTMENT POLICY
The Trust’s investments have been acquired in accordance with the Trustees’ powers as set out in the Memorandum and Articles of Association. The management of the Trust’s investment funds is delegated to professional investment managers. The Trust’s investment policy is for total gross returns. The mandate to the investment managers is for all direct investments in UK equities to be chosen from the FTSE4Good ethical investment index.
The investments are split into Designated £12,592,562 (2019: £12,306,780) and General funds £22,976 (2019: £1,077,171).
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BRITISH RECORD INDUSTRY TRUST
TRUSTEES’ ANNUAL REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
Designated funds are amounts that have been put aside at the discretion of the Trustees and comprise an investment fund to enable the Trust to build reserves consistent with its Reserves Policy. General funds are expendable at the discretion of the Trustees in the furtherance of the objects of the charity.
The Trust’s main source of funding is from BRIT Awards Limited, however, the Trustees have no direct control over the value of funding received from BRIT Awards Limited. Accordingly the Trustees have determined that it is prudent to maintain reserves to ensure that outstanding commitments can be met and that, if necessary, levels of spending can be adjusted to continue to provide grants in the future.
The Trustees believe the Trust should set a target for its reserves such that, should the Trust’s income from its principal donors (the BRIT Awards Limited and the Music Industry Trust) significantly reduce or cease, then the Trust’s reserves alone would generate sufficient income to continue to support both The BRIT School and Nordoff Robbins, as well as, where possible, grants to other appropriate causes.
It is the Trustees’ opinion that the Trust requires total reserves of at least £20 million to generate the necessary income to meet annual funding targets. This calculation is based on current investment returns, the average of the previous three years’ obligations made, and a minimal amount of administrative costs of the Trust. One year’s expenditure, as defined, is calculated as approximately £972,000 (2019 £905,000).
As at 31 December 2020, the balance on the Designated Fund was £12,592,562 (2019: £12,306,780) and the balance on the General Fund was £22,976 (2019: £5,910), which gives total reserves of £12,615,538 (2019: £12,312,690). As the Funds sit below the £20m target, it remains the Trustees’ long term intention to continue to build reserves until the target is reached.
This reserves policy was adopted on 9[th] June 2021 and is reviewed regularly by the Trustees on at least an annual basis for continued appropriateness.
COVID-19 AND FUTURE PLANS
The Trust recognises that COVID-19 has already had an impact on the financial performance of its principal donors (BRIT Awards Limited and Music Industry Trusts Limited) in 2020 and may continue to do so for some time. Government restrictions on indoor gatherings meant that that MITs 2020 event was cancelled and BRIT Awards 2021 was delayed. It is likely that any donations from these donors will be significantly reduced in 2021.
The Reserves Policy above outlines the level of reserves required to allow the Trust to continue with its mission statement should income significantly reduce or cease. The Trustees will continue to regularly monitor and review the effectiveness of the Reserves Policy in the light of the changing funding and financial climate and other risks, to ensure any reductions in funding can be met from reserves held.
This financial year, the Trustees recognise that the long term aim of the Reserves Policy must be balanced with any potential additional support required by The BRIT School, Nordoff Robbins and other beneficiaries in the wake of economic consequences from the pandemic.
The Trustees have considered the known impact and unknown future impact of the COVID-19 pandemic on the assessment of the going concern basis for the preparation of these financial statements. The Trustees consider that the current cash levels, forecast investment income and investment portfolio provide the charity with free reserves that will allow it to withstand the impacts of the pandemic for at least 12 months from the approval of the financial statements.
Notes 3 and 12 show the income and capital growth of the Trust’s investment portfolios in the year. On 31 August 2021 the listed investments had a balance of £14.85m.
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TRUSTEES’ ANNUAL REPORT (CONTINUED)
BRITISH RECORD INDUSTRY TRUST
FOR THE YEAR ENDED 31 DECEMBER 2020
COMPLIANCE WITH REGULATIONS
These financial statements comply with current statutory requirements, the requirements of the Trust’s Articles of Association and the requirements of Charities SORP 2019.
This report has been prepared in accordance with the special provisions relating to small companies of the Companies Act 2006.
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BRITISH RECORD INDUSTRY TRUST
TRUSTEES’ ANNUAL REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The Trustees (who are also directors of the British Record Industry Trust for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware at the time of approving our Trustees’ annual report:
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there is no relevant audit information of which the charitable company’s auditor is unaware; and
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the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
AUDITORS
A resolution to appoint RSM UK Audit LLP for the ensuing year will be proposed at the next Trustee meeting.
This report was approved by the trustees on 9[th] June 2021, and was signed for and on behalf of the board by
T Wadsworth CBE (Chair)
31[st] August 2021
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE BRITISH RECORD INDUSTRY TRUST
Opinion
We have audited the financial statements of The British Record Industry Trust (the ‘charitable company’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
B asis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Trustees’ Annual Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE BRITISH RECORD INDUSTRY TRUST (CONTINUED)
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees’ Annual Report, which includes the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Directors’ Report included within the Trustees’ Annual Report, has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees’ Annual Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the Trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Trustees’ Annual Report.
Responsibilities of trustees
As explained more fully in the Statement of Trustees’ responsibilities set out on page …, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE BRITISH RECORD INDUSTRY TRUST (CONTINUED)
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
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obtained an understanding of the nature of the sector, including the legal and regulatory frameworks that the charitable company operates in and how the charitable company is complying with the legal and regulatory frameworks;
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inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
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discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the charitable company’s governing document, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect noncompliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Annual Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents, inspecting non-routine correspondence with local tax authorities and evaluating advice received from internal/external advisors.
The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, and challenging judgments and estimates.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
NICHOLAS SLADDEN (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants 25 Farringdon Street London EC4A 4AB
Date:
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BRITISH RECORD INDUSTRY TRUST
STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)
FOR THE YEAR ENDED 31 DECEMBER 2020
| Notes INCOME FROM: Donations and legacies 2 Investments 3 TOTAL EXPENDITURE ON: Raising funds 9 Charitable activities TOTAL Net gains/(losses) on investments 12 NET INCOME BEFORE TRANSFER Transfer between funds 16 RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD 16 |
Unrestricted Restricted General fund funds £ £ 55,000 1,324,989 - 1,711 _ _ 55,000 1,326,700 - - (55,000) (1,069,634) _ _ (55,000) (1,069,634) - - _ _ - 257,066 - (240,000) _ _ - 17,066 _ _ - 5,910 _ _ - 22,976 |
Unrestricted Designated funds £ - 304,994 _ 304,994 (51,936) - _ (51,936) (207,276) _ 45,782 240,000 _ 285,782 _ 12,306,780 _ 12,592,562 |
Total Total 2020 2019 £ £ 1,379,989 1,444,437 306,705 418,366 _ _ 1,686,694 1,862,803 (51,936) (51,855) (1,124,634) (1,177,444) _ _ (1,176,570) (1,229,299) (207,276) 1,526,526 _ _ 302,848 2,160,030 - - _ _ 302,848 2,160,030 _ _ 12,312,690 10,152,660 _ _ 12,615,538 12,312,690 |
|---|---|---|---|
The notes on pages 17 to 23 form part of these financial statements.
14
Company Number: 02372740
BRITISH RECORD INDUSTRY TRUST
BALANCE SHEET
AS AT 31 DECEMBER 2020
| Notes FIXED ASSETS Investments in associated entity 11 Investments 12 CURRENT ASSETS Debtors 13 Cash at bank and in hand LIABILITIES Creditors: Amounts falling due within one year 14 NET CURRENT ASSETS/(LIABILITIES) TOTAL ASSETS LESS CURRENT LIABILITIES Creditors: Amounts falling due after one year 14 TOTAL ASSETS LESS CURRENT LIABILITIES & NET ASSETS THE FUNDS OF THE CHARITY Unrestricted income funds General fund 16 Designated Fund 16 TOTAL CHARITY FUNDS |
2020 £ 1 13,432,982 _ 13,432,983 14,512 964,433 _ 978,945 (896,390) _ 82,555 _ 13,515,538 (900,000) _ 12,615,538 22,976 12,592,562 _ 12,615,538 |
2019 £ 1 13,383,951 _ 13,383,952 18,448 1,169,732 _ 1,188,180 (1,409,442) _ (221,262) _ 13,162,690 (850,000) _ 12,312,690 5,910 12,306,780 _ 12,312,690 |
|---|---|---|
The Trustees have prepared the financial statements in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011.
These financial statements are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.
The notes on pages 17 to 26 form part of these financial statements.
These financial statements were approved and authorised for issue by the Trustees on 9[th] June 2021 and are signed on their behalf by;
T Wadsworth CBE (Chair)
31[st] August 2021
15
BRITISH RECORD INDUSTRY TRUST
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
| Notes CASH FLOWS FROM OPERATING ACTIVITIES: Net cash (used in)/generated by operating activities 17 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of investments Net cash (used in)/provided by investing activities CHANGE IN CASH AND CASH EQUIVALENTS IN THE REPORTING PERIOD Cash and cash equivalents at the beginning of the reporting period CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD 17 |
2020 £ (205,299) - _ - _ (205,299) 1,169,732 ___ 964,433 |
2019 £ 197,693 - _ - _ 197,693 972,039 ___ 1,169,732 |
|---|---|---|
16
BRITISH RECORD INDUSTRY TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
1. ACCOUNTING POLICIES
1.1. Basis of accounting
These financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
British Record Industry Trust meets the definition of a public benefit entity under FRS 102.
1.2. Accounting convention
The financial statements are prepared under the historical cost convention, as modified by the revaluation of investments to market value.
1.3. Going Concern
The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern for the foreseeable future. The Trustees have considered the impact of the COVID-19 pandemic on the assessment of the going concern basis for the preparation of these financial statements. At the time of filing it is unclear what the full impact on donations may be. The Trustees consider that the current cash levels, forecast investment income and investment portfolio provide the charity with free reserves that will allow it to withstand the potential impacts of the pandemic for at least 12 months from the approval of the financial statements.
The pandemic is not considered to impact materially on that assessment and the financial statements continue to be prepared on a going concern basis.
1.4. Income
Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be reliably measured.
Donations and Legacies
This comprises donations. Donation income is recognised when it is receivable as the result of a legal obligation.
Investment income
This comprises investment income and interest. Interest receivable is accounted for in relation to the period that the interest accrues. Investment income is accounted for when receivable.
1.5. Expenditure on Charitable activities
Charitable activities comprise those costs incurred by the charitable company in the delivery of its activities for beneficiaries. This includes direct costs such as grants made and those costs of an indirect nature necessary to support them, including administration costs. There is considered to be only one type of charitable activity, being grant giving to encourage young people in relation to music. All expenditure is accounted for on an accruals basis.
Grants payable
Grants payable are accounted for when the Trustees have accepted a legal or constructive obligation to make the grant, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Other expenditure for charitable purposes
Other expenditure for charitable purposes comprise sundry expenses related to the support of music education and is accounted for when payable.
17
BRITISH RECORD INDUSTRY TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
1.6. Support costs
Governance costs include those costs incurred in meeting the constitutional and statutory requirements of the charitable company and include audit and accounting fees.
1.7. Costs of raising funds
Costs of raising funds comprise any costs associated with attracting voluntary income and the costs of generating investment income, typically investment management fees.
1.8. Fund accounting
The charity maintains unrestricted funds as follows:
Designated funds are amounts that have been put aside at the discretion of the Trustees and comprise an investment fund to build reserves sufficient to provide income to meet the charity’s future grant commitments and future annual administration costs.
General funds are expendable at the discretion of the Trustees in the furtherance of the objects of the charity.
1.9. Investments in associated entities
The investment in the Trust’s associate is stated at cost less provision for any impairment. Music Industry Trusts Limited is not consolidated since the British Record Industry Trust does not have control of the entity. The Trust exerts significant influence, along with the other 50% shareholder.
1.10. Fixed asset investments
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes net gains and losses arising on revaluation and disposals throughout the year.
The Trust does not acquire put options, derivatives or other complex financial instruments.
The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
1.11. Realised gains and losses
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and the opening market value (or purchase date if later). Under FRS 102 any changes in the value of financial instruments measured at fair value are taken through profit and loss. In order to comply with this requirement, gains and losses on investments are now shown in the Statement of Financial Activities above net income.
1.12. Foreign currencies
Transactions in foreign currencies are recognised at the rate of exchange at the date of the transaction. Monetary assets and liabilities are translated into sterling at the exchange rate on the balance sheet date. All exchange differences are recognised through the Statement of Financial Activities.
1.13. Charitable commitments
Commitments are accounted for as resources expended in the Statement of Financial Activities.
18
BRITISH RECORD INDUSTRY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1.14. Status of funds and guarantors’ liability
Unrestricted funds are funds which can be used in accordance with Trust’s charitable objects at the discretion of the trustees. Restricted funds are funds which are received for undertaking an activity specified by the donor. Designated funds are funds set aside by the Trustees for specific future purposes or projects.
The liability of the guarantors is limited but every guarantor undertakes to contribute to the assets of the Trust in the event of the same being wound up while they are a guarantor, or within one year after they cease to be a guarantor, for payment of debts and liabilities the Trust contracted before they cease to be a guarantor, of costs, charges and expenses of winding up and for the adjustment of the rights of the contributions among themselves, such amounts as may be required not exceeding £1. At 31 December 2020 there were 13 (2019: 19) guarantors
1.15. Financial Instruments
Financial assets and financial liabilities are recognised in the balance sheet when the Charity becomes a party to the contractual provisions of the instrument.
Trade and other receivables and liabilities are classified as basic financial instruments and measured at initial recognition at transaction price and subsequently at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the charity will not be able to collect all amounts due.
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank, and include £500,000 held as a short term highly liquid Money Market fund.
2. INCOME FROM DONATIONS AND LEGACIES
| Donation from Music Industry Trusts Limited Donation from BRIT Awards Limited Sundry INVESTMENT INCOME Bank Interest Income from listed Investments |
Total 2020 £ 187,989 1,190,000 2,000 _ 1,379,989 Total 2020 £ 1,711 304,994 _ 306,705 |
Total 2019 £ 213,048 1,205,000 26,389 ___ 1,444,437 |
|---|---|---|
| Total 2019 £ 2,669 415,697 ___ 418,366 |
3. INVESTMENT INCOME
19
BRITISH RECORD INDUSTRY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
4. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES
| ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES | ||
|---|---|---|
| Total | Total | |
| 2020 | 2019 | |
| £ | £ | |
| Grants payable(see note 5) | 1,103,350 | 1,141,614 |
| Support Costs: | ||
| Management and administration of the charity (see note 6) | 1,904 | 5,145 |
| Other charitable expenditure (see note 7) | 11,640 | 123 |
| Marketing costs (see note 6) | (3,000) | 24,025 |
| Governance costs (see note 8) | 10,740 | 6,537 |
| ___ | ___ | |
| 1,124,634 | 1,177,444 |
5.
GRANTS PAYABLE
| GRANTS PAYABLE | ||
|---|---|---|
| Total | Total | |
| 2020 | 2019 | |
| £ | £ | |
| The BRIT School | 452,000 | 562,000 |
| Nordoff Robbins Music Therapy | 542,450 | 400,000 |
| Day One Trust (ELAM) | 60,000 | 10,000 |
| Key4Life | 20,000 | - |
| Mind | (1,200) | 100,000 |
| BPI (BRITs Apprentice Scheme) | (24,900) | (7,609) |
| Music Support | 30,000 | 10,000 |
| Music For My Mind | - | 30,000 |
| Other (individually not more than £10,000) | 25,000 | 37,223 |
| ___ | ___ | |
| 1,103,350 | 1,141,614 |
During the year the trustees agreed to credit project underspends on two grants awarded to organisations in 2018. In 2019 the trustees agreed to credit a project underspend on one grant awarded to an organisation in 2017.
6. SUPPORT COSTS - MANAGEMENT AND ADMINISTRATION OF THE CHARITY
| TOTAL | Total | |
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Bank Charges | 527 | 485 |
| Marketing Costs | (3,000) | 24,025 |
| Legal Costs | 772 | 4,380 |
| Sundry | 604 | 280 |
| ___ | ___ | |
| (1,097) | 29,170 |
20
BRITISH RECORD INDUSTRY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
7. SUPPORT COSTS - OTHER CHARITABLE EXPENDITURE
8.
9.
| SUPPORT COSTS - OTHER CHARITABLE EXPENDITURE | ||
|---|---|---|
| Website costs Other GOVERNANCE COSTS Auditor’s remuneration – Audit COSTS OF RAISING FUNDS Investment management fees |
Total 2020 £ 13,440 (1,800) ___ 11,640 Total 2020 £ 10,740 Total 2020 £ 51,936 |
Total 2019 £ - 123 ___ 123 |
| Total 2019 £ 6,537 |
||
| Total 2019 £ 51,855 |
10. INFORMATION REGARDING TRUSTEES AND EMPLOYEES
Maggie Crowe, Geoff Taylor and Gerald Doherty, trustees of the charity, were directors of BRIT Awards Limited during the year, which has donated £1,190,000 (2019: £1,205,000) to the Trust in the year.
Maggie Crowe, Geoff Taylor and David Munns, trustees of the charity, were directors of Music Industry Trusts Limited, an associated entity of the Trust, during the year, which has donated £187,989 (2019: £213,048) to the Trust in the year.
Paul Burger, Maggie Crowe, Geoff Taylor and Tony Wadsworth, trustees of the charity, were directors of The BRIT School, during the year, which has received grants of £452,000 (2019: £562,000) from the Trust in the year. [Geoff Taylor and Tony Wadsworth resigned from The BRIT School on 25 Feb 2020). Maggie Crowe resigned as a trustee of BRIT Trust 5 May 2020.
David Munns, a trustee of the charity, was a director of Nordoff Robbins Music Therapy during the year, which has received a grant of £542,450 (2019: £400,000) from the Trust in the year.
David Sharpe, a trustee of the charity, was a trustee of Key4Life during the year, which received a grant of £20,000 (2019: Nil) from the Trust in the year. He resigned from Key4Life 30 November 2020.
The charity had no employees in either the current or the preceding year. The charity paid £627 (2019: £280) for the purchase of directors and officers liability insurance.
Geoff Taylor, Henry Semmence and Gerald Doherty were Directors of BPI (British Recorded Music Industry) Limited (“BPI”) during the year. The Trust is run from the offices of BPI, which also provides staff to administer the Trust. No charge is made in respect of this service. BPI recharges the Trust with expenses incurred specifically on its behalf.
No individuals have been paid any remuneration or received any other benefits from an employment with the charity or a related entity whilst serving as trustees during the current or preceding year.
21
BRITISH RECORD INDUSTRY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
11. INVESTMENT IN ASSOCIATED ENTITY
| Total | Total | |||||
|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||
| £ | £ | |||||
| Cost at | 1 | January and | 31 | December | 1 | 1 |
The investment in an associated entity represents a 50% interest in the ordinary share capital of Music Industry Trusts Limited (02689836), a company incorporated in Great Britain. The remaining 50% interest in the ordinary share capital of Music Industry Trusts Limited is owned by Nordoff Robbins.
Music Industry Trusts Limited donates its profits under the Gift Aid scheme to both the British Record Industry Trust and Nordoff Robbins Music Therapy. As at the balance sheet date £NIL (2019 Restated: NIL) is receivable by the Trust. Details of the results for the year of Music Industry Trusts Limited and of its position as at 31 December 2020 are as follows:
| Extracts from the profit and loss account: Turnover Profit before donations Profit before and after taxation Extracts from the balance sheet: Net assets |
Total 2020 £ 60,204 _ 27,700 _ 27,700 27,698 ___ 27,698 |
Total 2019 £ 638,328 _ 262,894 _ 262,894 262,896 ___ 262,896 |
|---|---|---|
12.
INVESTMENT IN FIXED ASSETS
| Listed Investments Market Value at 1 January Additions to investments at cost Disposals at carrying value Net gain/(loss) on revaluations Total listed investments Cash and cash equivalents Invested cash at 1 January Other cash movements Total Cash at 31 December |
Total 2020 £ 12,921,072 3,087,541 (2,480,744) (207,276) _ 13,320,593 462,879 (350,490) _ 112,389 |
Total 2019 £ 11,328,303 1,640,825 (1,574,582) 1,526,526 _ 12,921,072 168,299 294,580 _ 462,879 |
|---|---|---|
22
BRITISH RECORD INDUSTRY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
12. INVESTMENT HELD AS FIXED ASSET (CONTINUED)
| Investments comprise of the following: | Total | Total |
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Listed Investments | 13,320,593 | 12,921,072 |
| Cash and cash equivalents | 112,389 | 462,879 |
| ___ | ___ | |
| 13,432,982 | 13,383,951 |
During the year the investment portfolios were managed by Investec. Investec work to a brief of investment with the aim of producing a balance between income and capital growth.
13. DEBTORS
| Other Debtors 14. CREDITORS Amounts falling due within one year: Grant commitments Accruals and deferred income Amounts falling due after one year: Grant commitments |
2020 £ 14,512 2020 £ 885,100 11,290 ___ 896,390 900,000 |
2019 £ 18,448 2019 £ 1,392,700 16,742 ___ 1,409,442 850,000 |
|---|---|---|
23
BRITISH RECORD INDUSTRY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
14. CREDITORS (CONTINUED)
| Grants payable at 1 January 2020 £ The BRIT School 1,706,500 Nordoff Robbins Music Therapy 400,000 Day One trust (ELAM) 10,000 Key4Life - MIND 101,200 BPI (BRITs Apprentice Scheme) 25,000 Music Support - Other (individually not more £10,000) - _ Total 2,242,700 15. ANALYSIS OF NET ASSETS BETWEEN FUNDS Restricted Fund £ Fixed assets - Current assets 55,000 Liabilities (55,000) _ 2020 Total - Restricted Fund £ Fixed assets - Current assets 120,000 Liabilities (120,000) ___ 2019 Total - |
Grants awarded during the year £ 452,000 542,450 60,000 20,000 (1,200) (24,900) 30,000 25,000 _ 1,103,350 General Fund £ 840,421 923,945 (1,741,390) _ 22,976 General Fund £ 1,077,172 1,068,180 (2,139,442) ___ 5,910 |
Grants Grants payable at paid in the 31 December year 2020 £ £ (858,500) 1,300,000 (542,450) 400,000 (10,000) 60,000 (20,000) - (100,000) - - 100 (30,000) - - 25,000 _ _ (1,560,950) 1,785,100 Designated Total Fund 2020 £ £ 12,592,562 13,432,983 - 978,945 - (1,796,390) _ _ 12,592,562 12,615,538 Designated Total Fund 2019 £ £ 12,306,780 13,383,952 - 1,188,180 - (2,259,442) _ _ 12,306,780 12,312,690 |
|---|---|---|
24
BRITISH RECORD INDUSTRY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
16. MOVEMENT IN FUNDS
| Income | |||||
|---|---|---|---|---|---|
| As at 1 | (including | As at 31 | |||
| January | investment | December | |||
| 2020 | gains) | Expenditure | Transfers | 2020 | |
| £ | £ | £ | £ | £ | |
| Unrestricted funds | |||||
| Designated investment fund | 12,306,780 | 97,718 | (51,936) |
240,000 | 12,592,562 |
| General fund | 5,910 | 1,326,700 | (1,069,634) | (240,000) | 22,976 |
| ___ | ___ | ___ | ___ | ___ | |
| Total | 12,312,690 | 1,424,418 | (1,121,570) | - | 12,615,538 |
Unrestricted funds include unrealised gains and losses in respect of investments held at the balance sheet date.
Designated funds are amounts that have been put aside at the discretion of the Trustees and comprise an investment fund to build reserves sufficient to provide income to meet the charity’s future annual administration costs and future grant commitments.
The transfer relates to the movement of funds from the designated reserve to the general reserve to prevent the general reserve going into deficit, approved by the Trustees.
Restricted fund
| Income | ||||||
|---|---|---|---|---|---|---|
| As at 1 | (including | As at 31 | ||||
| January | investment | December | ||||
| 2020 | gains) | Expenditure | Transfers | 2020 | ||
| £ | £ | £ | £ | £ | ||
| BRIT Awards | 2020 | - | 55,000 | (55,000) | - | - |
The BRITs 2020 donation to the Trust included £55,000 specifically towards Day One Trust (ELAM) delivering student welfare during the pandemic.
MOVEMENT IN FUNDS 2019
| Income | |||||
|---|---|---|---|---|---|
| As at 1 | (including | As at 31 | |||
| January | investment | December | |||
| 2019 | gains) | Expenditure | Transfers | 2019 | |
| £ | £ | £ | £ | £ | |
| Unrestricted funds | |||||
| Designated investment fund | 10,341,412 | 1,942,224 | (51,856) |
75,000 | 12,306,780 |
| General fund | (188,752) | 1,197,105 | (927,443) |
(75,000) | 5,910 |
| ___ | ___ | ___ | ___ | ___ | |
| Total | 10,152,660 | 3,139,329 | (979,299) |
- | 12,312,690 |
25
BRITISH RECORD INDUSTRY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
17. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Net income for the reporting period | ||
| (as per the statement of financial activities) | 302,848 | 2,160,030 |
| (Increase) / decrease in fixed investments | (49,031) | (1,887,349) |
| Decrease / (increase) in debtors | 3,936 | (3,715) |
| (Decrease) / Increase in creditors | (463,052) | (71,273) |
| ___ | ___ | |
| (205,299) | 197,693 |
26