Registered number: 02868675 Charity numb¢r: 1034374 DRAKE MUSIC (A Company Limited by Guarantee) ATrtNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
DRAKE MUSIC Legal & Administrative Details Chaimlan J Stodd Trustees C de Swiet (resigned 22 January 2024) J A Bickerton (resigned I l December 2023) A Gowan-webster (resigned 18 January 2024) E Salmon J Stodd S Kattekop (appointed 13 September 2023) D Watts (appointed 25 November 2024) C Wang (appointed 25 November ?024) Chief executive (Interim) S Currie, FCCA Founder A Drake, FRSA Company registered number 02868675 Charity registered number 1034374 Registered office Ricl)mix 35-47 Bethnal Green Road London EI 6LA Independent Examiner Slmpson Wreford LLP Wellesley House Duke of Wellington Avenue Royal Arsenal London SEI 8 6SS Bankers CAF Bank Limited Kings Hill West Malling Kent. ME194TA Solicitors Russell-cooke LLP 2 Putney Hill London SW15 6A
DRAKE MUSIC Contsnts Trustee's report Independcnt eKqminers' rep)rt Accounts comprising. io Statement of financia] a¢livities Balance sheel 12 Slatement of cashflows 13-23 Notes to the accounts
DRAKE MUSIC TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2024 The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the fllMicial statements of the charity for the year ended 31 March 2024. The trustees have adopted the provisions of Accounting and Rewrting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the FinanciaI Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charity is a public benefit entity. OBJEcfIvES AI¥D ACTIVITIES Drake Music's object is 'the advancement of the education of Disabled people of all ages in the Arts, and in particular the art of music,. Our powers are to: • Provide Disabled people of any age with progression pathTh'ays into music. through the innovative and imaginative use of technology and other creative ways. Widen access to music. engendering genuine musical development and increasing the number of confident Disabled musicians at every level; Empower Disabled m1ClauS and develop their capabilitie5 to pas5 skills on to others, thereby encouraging equality of participation and collaboration in music-making. between Disabled and non- Disabled artists. . Explore. research and develop new ways of working, musi¢-makin& use of iechnology and develop and share good practice. Our mission and vision: Drake Music (DM) are leaders in music, disability and technology. We are a national organisation, making innovative and imaginative use of technology to remove disabling barriers to music-making. We are innovators, educators, makers, curators and adv(Kates. We believe everyone has the right to express themselves creatively through rn81¢, Our vision is a world where Disabled people have the same range of opportunities as non-Disabled people, and a culture of music-making where Disabled and non-Disabled musicians of all ages participate, collaborate, create and perform as equals. and where equalily, access and inclusion are the nonn. We put quality music-making at the heart of everything we do, connecting people locally, nationally and internationally. We explore, develop and test different ways of working at the intersection of music, disability and technology, breaking new ground in ternis of artistic and participatory practice. Our work is underpinned and shaped by the Social Model of Disability- Our office is at Rich Mix Cultural Foundation in East London. Our programmes and projects are delivered across the country by a team of staff and associates, often in partnership with local and regional organisations. We support a thriving volunteer community of instrument makers, coders and Disabled musicians in Manchester, Bristol and London. SUMMARY OF THE 41N ACTIVITIES 2023-24 was the fst year of Drake Music's three-year core funding agreement. continuing our role &s part of Arts Council England's (ACE) National Portfolio. The year proved particularly challenging &8 Drake Music negotiated changes in our executive leadership and our board of trustees. Despite the core fundin& Drake Music faced an overall contraction in funding income &8 previous multiyear arrangements ended and subsequent funding bids were of limited success. Remaining trustees ensured that the charity's obKigations to the Charity Commission to report the serious governance and leadership challenges we faced and plans to resolve these, including interim executive leadership arrangements. The trustees are deeply grateful to Arts Council England for the positive engagement and continuing
DRAKE MUSIC TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2024 support over this difficult periLXI. To bring expenditure in line with forecast income, it was necessary to undertake a staffing restructure including a redundancy consultation. This restructure completed in March 2024. Despite these major challenges, Drake Music deliver¢d an exciting programme of activities and ended the year with refreshed and refocused employed workforce, and a renewed commitment to further support and dev¢lop our tea. In March 2024. the trustees wnfirnied the appointment of a new Interim CEO, from April 2024, who will lead the charity inio a new chaptcr of innovation and engagement. Sally Currie is an accountant qualified with th¢ A550ciation of Chartered Certified Accountants and is also a partially deaf multi-instrumentalist based in Kingston-Upon-Hull. She take5 up her position at Drakc Music after scveral years working in finance. governance and business management for arts organisations such as Freedom Festival Arts Trust, Jazz Nort14 The New Adelphi Club CIC and The Old Market. Sh¢ 15 s0 an alumni of Drake Music's emergent programmes. The main activities of the charity carried out in 2023124 that gave rise to public benefit were as follows: Arts & Collaboratio o Drake Musir Collective Emerging and Resident Artists Programme Emerging Artists Collaboration in partnership with Irene Taylor Trust Research & Development DMLab London and Manchester Accessible Musical Instrument Collection {AMIC) o Research project with Bimingham University Supervision of Phd Student at the Royal Northern College of Music Learning & Participation Or¢hlab in partnership with the London Philharmonic Orchestra Electric Storni Ensemble and Plarfomi projects Think 22 o Tiny Techies Future Leaders o Dada and Young Dada projects We also continued to dcliver training and consultancy services to other organisations, and continued our international Work in Japan. a British Council supported collaboration between Drake Music, Tokyo Symphony Orchestra and young Disabl¢d musicians in Kawasaki. Public Benefit In shaping our objectives for th¢ year and planning our activities, the trustees have considered th¢ Charity Commission's guidance on public bell¢fiL including the guidance on public benefit and fee charging. The Charity relies on grants and the income from fees and charges to cover its operating costs. The trustees have rleWed the current activities of the charitable company and confmed that they are in line with its objectives. The trustees a]so confiTm that the organisation's aims and objectives fall within the "descriptions of purposcs" in the Charities Act 2011 and are recogniscd &s charitable and are carried out for the public benefit. ACHIEVEMENTS AIYD PERFORMANC Strategic Objectives Our overall direction, practice and programmes are underpinned by the following strategic objectives: l. Disabled musicians, learners, producers, managers, makers and curators are al the heart of our researc
DRAKE MUSIC TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2024 artistic, training & participatory practice. 2. Be at the forefront of and lead on artistic, participatory and technological developments and innovation within our field, sharing our practice nationally and internationally. 3. Fllitate, champion and advocate for equality, access, authenticity and inclusioffj across the workforce, our progrdmmcs and practice 4. To be a r¢sili¢nt, sustainabl¢ and flexible business, relevanl and responsive to the communities we serve. To deliver our strategic objectives. our approach includes partnership-working with a broad range of individuals and organisations including schools, universities, arts organisalions. local authorities, music services, software and hardware developers as well as musicians. technologists, composers and artists from other disciplines. Our aim is to share our knowledge and expertise widcly to advocate for equality and diversity, and to improve acccss to music-tnaking aLfoss the board. Over the last year the competitive funding environmcnt has been particularly challcnging for Drake Music. We saw sevcral large multi-year grants for some of our k¢y projects came to an end, which have proved difficult to replace. Despite this we have continued to deliver a range of activities to support Disabled people in music, including those new to music alongside emerging and professional artists. Arts and Collaborations Last year through our Drake Music Collective (DMC) project we worked with 14 Disabled artists (including our alumni artists) providing them with professional development support and opy>rtunities to further their creative practice. Our feedback from the artists we worked with last year was continually positive: 'Being chosen by DMC an EmergentArtisi has helped me in so many wtrys. Notjust through ihefi4nthng to support the recording of my debut conceptual EP. bt4t also in giving me a huge CodenCe boost to continue along ihepath lam layingfor myself ' Rivkal4 2023 Emergent Artist 2023 'Disabled musicians can oflen find themselves working in isolation. interacting with an industy thai doe&n't uperstand how to engage with w. DMC hoy provided me wlth an invaluable opporttmlty to connect with oiher disabled artlNls across ihe cotmtry, to buildcommwiity, and with space and supporl to develop pny crealrvepractice in a wuy ihat hasfelt indy accessible. ' Daisy Higman. 2023 Resident Artist Our Drake mSiC artist showcase event took place at LSO St Luk¢'s in January. This wa8 attended by 120 music industry profcssionals and the public. providing a great opwrtunity for all of the artists involved. Th¢ event also provided an opportunity to collabordte with the venue's technical team on how to run an effective accessible event includlng with live BSL interpretatiory live captioning and audio description. In advance of the 2024 Brit Awards. a number of our DMC artists and alumni were also announced as this year's 'M&st¢rcaTd Trailblazers, for 'driviDg positive change in the music industy across teclm01o. diversity and inclusion.. Alongside our DMC programme, another key project continued with the Irene Taylor Trust (ITD who deliver music projects with prisoners, ex-offenders, and those at risk of offending. We worked closely with the charity to deliver training in inclusive technology and the social model of Disability for six artists and rive arts professionals. We also facilitated a conference together exploring Disability and the criminal justice systsm.
DRAKE MUSIC TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2024 Research and Developmenl Our Research and Development work continued to go from strength to strength through our DMLab programmes running in London and Manchester. We also supported major research projects at Birniingham University exploring accessible Djing and the Royal Northern College of Music on a project exploring comp)sition with accessible instruments and scores. We ran six Dmtab events in London at Rich Mix and Graeae Theatre, reaching 197 attendees (115 in person, 82 online). including Disabled musicians. makers, and accessible instrument developers. Highlights included workshops and presentations from Disabled musicians like Andre Louis using Ablcton Note with screen reader tecl John Kelly with his Kellyc&steT instrumcnt, Nicola Woodham's textile instruments. Academics Asha Ward and Jon Pigrem explored accessible music-making, while manufacturers like Digit Music demonstra*d their CMPSR controller. We also held an online event with pioneering instrument developer Roger Linn, whose instrnments have featured on countless hit records including Prince, Madonn4 and Michael Jackson, among many others. He shared an inspiring story of how he made his Lit]nDrum instrument more accessible after working with Stcvie Wondcr. We received lots of wsitive feedback from the events. 75Yo of people reported back feeling 'inspired and more confident to explore different musical tools ond irnstruments., 90¥0 saidthatthey had learnt something that could help to develop their skills and knowledge in music. 731/10 Stated they 'felt more knowledgeable of diff¢rent aesSIble in8trutnents that are available., 88Yo of people rated the accessibility of the events as 4 out of 5 or above. Participant feedback included: 'Reallygratefvl to see the diverse range ofmxyici¢7nJ andiechnolo&v thatyou are supporting. So important to remember thth everyone should1¢ access to making mwic. ' In Manchester we held seven DMLab events which also included collaborative events wilh Omnimusic in Stockport, and a special Expo with the School of Digital Arts at Manchester Metropolitan University. The Expo showcased the instrument development work from the DMLab NW sessions, while a]so bringing together a number of major music technology companies including Roland, Focusrite, Ableton, Audio MellIng, and Softube to talk about accessibility in music technology. The event w&8 a great success and demonstrated th¢ progress we have made in ensuring that manufacturers of audio equipment are taking Disabled musicians and considerations for accessibility more seriously. 105 people attended the event online and in-person. Learnfing and Partieipation We continued to deliver a range of projects to enable Disabled peopl¢ to engage in music ning opportunities. In the South West, our Electric StOTm Ensemble project saw us working with a group of around 10 individuals at a time at St. fvfjchael's Lcollard Cheshire residential rare home. Participants made grcat creative progress, producing four n¢w songs. and exploring new technology to enhance their musical experience. A key &8pect of Electric Storni Ensemble is providing training and support for Ca home staff to manage music making sessions. Unfortunately. Leonard Cheshir¢ announced the sudden closure of St. mic1e1'S in June 2023. Through a new partnership with thc Brandon Trust. who run a number of residential homes for Disabled adults in Brislol. wc continued to deliver the projcct. 36 PLATFORM music sessions for 15 Disabled adults were also run in partnership with Bristol Beacon. These took place at Bristol Beacon's music c¢ntrc in Southmead, giving adults with Compl needs the chance to explore music and creativity using both traditional and non-traditional instrumcnts. The feedback from everyone that participated including the staff was really positive. In the North West, the final year of our access research project, Tiny Techies saw 30 Disabled children aged 4-8 taking part in w¢¢kly music sessions at Newlands School a specialist primary school for children
DRAKE MUSIC TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2024 with additional educational needs and Disabilities in Rwhdale. This partnership project delivered with Live M81C Now successfully enhanced the Children's creative, musical, and communication skills. The pmject used the Sounds of Intent framework to assess progress, and results showed that 57% of children mad¢ significant progress in at least one domai while 23 % demonstrated good progress. The young Dada project saw weekly group music sessions for emerging young musicians continued throughout the year in Liverpool. In London, our continued partnership with the London Philharn]onic Orchestra on the OrchLab project saw us running 28 workshops with 19 Disabled adults at Oak View and Bradbury Court residential homes. The project engages Disabled adults in classical music using accessible lools and newly cre<ited instrurncnts. This year work began on a new accessible string instnllnent for participants to try out and provide feedback on. For our capacity building work, our national Youth Music funded project with music hubs and educatOTS, 'Think 22, came to an end. Learning resources have been developed and translated into a range of accessible forniats as a legacy of this four-year project. After securing new funding from Youth Music work began on a new prOamMe. 'Future Leaders, which aim5 to support greater representation of Disabled people in the music education workforce. This is involving young Disabled people inform the music education system, as well as providing training and development to support the next generation of music leaders. Consultancy and Training We continued to support the education sector by delivering training on inclusive practices to Music Education Hubs and also direct to educators, in partnership with Sound Connections. We were invited again to Japan by British Council Japan, who supported an annual collaboration between Drake Music, Tokyo Symphony Orchestra and young Disabled musicians in Kawasaki. FINANCIAL REVIEW The accounts for the year endcd 31 March 2024 show a deficit on restricted funds of £91,264 (2023: surplus ot £90,496) and a deficit on unrestricted funds of £177.570 (2023: £22,931), resulting in an overall deficit for the ycar of £268,833 (2023: surplus £67,566). Unrestricted tunds at year end were £134,301 (2023: £311,870). Restricted funds were £120,891 (2023: £212,155). The charity does not hav¢ any designated funds. C&8h decreased to £240,061 (2023.. £477,016). For the year ended 31 March 2024, total income decreased by over 400/0 to £416,237 (2023: £717,101). During th¢ same period, totsl expenditure increased to £685,070 (2023: £649,535). Reserves Policy Drake Music will ensure that the charity maintains reserves that meets the risks and contingencies as follows: To enable basic operating activities to be maintained in the event of funding delays; To cover any cash flow gaps in the delivery of project funded activity supported by grants paid in The provision for an orderly winding down of operations in the event of a significant adverse event that is outside the wntrol of the company.
DRAKE MUSIC TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2024 Our reserves policy agreed in January 2023 stands at 3 to 6 months operating costs plus projected rUndan¢Y costs. As at 31° March 2024 Drake Music held approximately 5 months operating costs plus projected redundancy costs. The Board will review this policy on an annual basis. Gofing Concern The charity's forecasts and projections for the next twelve months show that the chlty should be able to continue in operational existence for that period. This also considers available measures to assist in miligating the impact of reduced income during the year on the charity's reserves. The charity has positive cash balances and is forecasting for this to continue to be the case. The trustees have &ssessed the financial risks relating to the Organisatio and remain confident of the company's ability to ¢ontinue as a going concern. Principal source8 of funds DurAng 2023124. Drnke Music's principal funder was Council England. Drake Music is an Arts Council National Portfolio Organisation (NPO). This funding (secured until March 2027, subject to su¢¢¢ssful extension funding) contributes to the organisation's core costs. Drake Music was also awarded unrestricted funds from Cayetana Hope Chest and th¢ CAF Keystone fund. Drake Music received restricted funding from other trusts and foundations including: Arts & Collaborations- DMC - PRS Foundation and D'oyly Carte Charitable Tnt Learning & Participation - Electric Storni Enmble and Plarforni - Joyce Fletcher Charitable TrusL John James Foundation, Quartet Community Foundation Research & Development- DMLab London- City Bridge Tt I)rake Music received earned income, primarily from the London Philharnionic Orchestra to deliver its part of the Orchlab partnership. Drake Music also continues to receive other individual donation& principally via JustGiving. Principal Risks Rlsk Management The major risks to which the chaTity is exposed, as identified by the trustees, are Teviewed and systems have been established to mitigate those risks includirlg the maintenance and review of a comprehensive risk register. The trust¢es ensure that the management of risk is ongoing and embedded in management and operational procedures. This process has identified several key risks, which have unfortunately materialised throughout 2023124 end the steps that were taken to mitigate them. Governance The departure of several truste¢s, including key roles such as the Chair and Treasurer left Drnke Music with the minimum number of trustees to operate the charity. The Interim CEO has recruited two new trustees in October 2024 and the recruitment drive will b¢ ongoing into 2025. Th¢ charity remains Disabled-led. There was still a high level of staff turnovcr as per previous years leading to severe vulnerabilities in the leadership and strategic direction of the charity. From January - March 2024 two Interim Executive Leads were appointed to find a solution to both the ongoing leadership of the organisation and to manage escalating staff Costs. This w&$ resolved by April 2024. Financial Drake Music had sufficient reserves to weather the financial challenges during the year, with 5 months reserves remaining in unrestricted funds.
DRAKE MUSIC TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2024 A prudent budget was prepared for 2024125 which reflects both reduced income generation and aims to protect the level of unrestricted reserves in that year. o A flexible reserves policy of holding 3-6 months operating costs plus projected redundancy costs is in place however the longer term strategy 15 to return to holding 6 month5. The Interim CEO refreshed the financial reporting to the trustees and principa] funders, and there is fr¢qu¢nt tnonitoring of budgets. funds and cashflow. o A business plan is being dcveloped in 2024 which will outline the strategy to rebuild income and resVeS levels on a medium t¢rni basis. Funder Relationships- Particular attention has been made to managing relationships with the principal funders of Drake Music by way of: Keeping them informed on changing developments at the charity in particular updates to the key risks outlined above as appmpriate o Ensuring funder reporting deadlines are agreed and adhered to o Monitoring and agreeing the delivery of funded activities. including reductions in activities where necessary Plans for tbe Future Drake Music, despite the challenges that it h&8 faced over Ihe past few years has a bright futwe. Many of the staff currently on the payroll have had an association with the charity for many years either as freelancer, artist or alumni. There is a dedicated community of people supporting Drake Music and the charity continues to be held in high regard. A new board of Trustees will continue to be recruited with a particular focus on ensuring that the charity r¢mains Disabled led but is also intersectional and has a broad range of skills to effectively drive the charity forwards. Moving forwards provides an opportunity for steering Drake Music back to stability. The work is underway for the Interim CEO and the team to formulate a strong and cohesive business strategy that clearly articulates the activities of Drake Music and enables it to advance towards its charitable objectives in new and exciting ways. The finances continue to be monitored regularly, and activities reviewed against funding requirements. Meetings of the Board of Trustees Continue to take place starting with monthly and reducing to every 6 weeks. It is expected for them to return to a quarterly basis in 2025 as the organisation stabilises. Extra rosource has been div¢rt¢d into fundraising for various el¢ments of the programme. Drake Music continues to hold relationships with forn]er funders and in some cases have b¢en invited to apply for funding once the organisalion has stabili%d. The landscape is still challenging however with many bids being rejected. Alongside this, there is a focus on investigating expenditure and resourc¢ allocatio ensuring that the charities existing operations are pmviding value for money. However. we are looking forward to continuing our relationship with our delivery partners and existing funders and with the appointment of the Interim CEO, tap into networks new to Drake Music. The challenge will be ensuring that Drake Music can tak¢ advantsge of and invest in the opporthnities to network and fundraise to sustain the organisation moving forwards. This will also involve opportunities to diversify Drake Music's incomc portfolio with corporate sponsorship, social investment schemes and new grant funders. STRUCTURE, GOVERNANCE AND MANAGEMENT Drake Music is a registered charity and a Company limited by guarantee. Our governing document is the Memorandum and Articles of Association, last amended on 10th November 2008. DM is governed by a Disabled-led board of Trustees, whose members are non<xecutive and unpaid. They
DRAKE MUSIC TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2024 are directors of the company under the Companies Act and trustees under charity law. The Board of Drake Music gives strategic and rK)licy direction for the charity. The charity employs a Chief Executive Officer who is responsible for the day-to-day direction and leads a skilled team of staff and associates. The board held a total of 8 meetings in the period. Staff remunerntion All senior personnel appointments, including setting pay and remuneration. are ratified by the Board of Trnst¢¢s. Drak¢ Music looks to other Gharitie5 for benchmarking to see what they pay for equal posltions at ml¢ creation. Appointment and induction of Tru5tee5 Our aim is to have nine Board membcrs in plac¢. However, we are currently recrniting for new trustees. TnJst¢¢ posts ar¢ advertised in the usual way, using Drake MsIc'S recruitinart guide]ines for diverse advertisin& 8nd Cncouraging applicants from under-represented groups. New board manbers receive some governance training & induction. They also receive an induction pack, which includes policie5 relevant to board members and current best practice documents such as Good Governance: a code for the voluntary and community sector. We also encourage on-going training for Trustecs such as an introduction to fjnance. Statement of the Board of Trustees Re$pon$ibilitie5 The members of the Board of Trustees are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and regulations. Company law requires the members of the Board of Truskes to prepare financial statements for each financial year. Under that law, the members of the Board of Trustees have elected to prepare the financial statement in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Th¢ financial statements are required by law to give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements the members of the Board of Trustees are required to:. select suitable accounting policies and apply them consistently make judgement and estimates that are reasonable and prudent prepare the fll]ancial stalements on the going concern basis unless it is inappropriate to presume that the Association will continue its activitics. The members of the Board of Truslees are responsiblc for the management of the Association's activities in accordanc¢ wilh its Memorandurn and Articles of Association and thc kceping of proper accounting records which di5clos¢ with rcasonable accuracy at any time the financial position of the Association, to enable them to ensure that th¢ fingncial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of th¢ Association and hence for taking reasonable steps for the prevention and detection of fraud and other irrcgulariti¢s. The trustees bave complied with their duty in section 17 of the Charitl¢s Act 2011 to have du¢ r¢gard to the public benefit guidance published by the Charity Commission. This report has be¢n prepared in accordance with the small companies regime under the Companies Act 2006. Signed on behalf of the board of Trustees on 12 December 2024. Julian Stodd Chainnan and Tne
INDEPENDENT EXAMINERS, REPORT TO THE TRUSTEES OF DRAKE MUSIC FOR THE YEAR ENDED 31 MARCH 2024 I report to the charity tnL8tees of the company for the year ended 31 March 2024, which are set out on pages 11 to24. Responsibiithes and blS of report As the charity's trustses of th¢ Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.). Having satisfied myself that the accounts of the company arc not required to be audited under Part 16 of the 2(X)6 Act and are eligible for independent examination, I report in respect of my examination of your chaTity'S a¢¢ounts &s Carried out under section 145 of the Charities Act 2011 (the '2011 Act,). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. Independent uamlner's report Since the CoMpY'S gross income exceeded £250,000 your examiner must be a m¢mber of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe.. (l ) accounting records were not kept in respect of the company as requircd by section 386 of the 2006 (2) the accounts do not accord with those accounting records. or (3) the accounts do not comply with the accounting requirements of swtion 396 of the 2006 Act other than any requirement that the accounts give a'true and fair, view which is not a lltter considered as part of an independent examination; or (4) the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended practice for accounting and reporting by ¢hariti¢s applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). I have no concerns and have come across no other matters in conne¢tion with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Kate Taylor FCA For and beha]f of Simpson Wreford LLP, Chartered Accountants Institute of Chartered Accounts in England and Wales Wellesley House Duke of Wellington Avenue London, SEI 8 6SS Dated:
DRAKE MUSIC STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024 Unrestrieted Restricted Funds Funds Totsl fimdj Totsl funds 2024 2023 INCOME Donations and leS Charitabk actsvitses Investment iacome Other income TOTAL INCOME 276209 56,718 59,400 335,609 5A718 637,940 77,052 2,109 16.670 356,837 IA670 416237 59,4 717.101 EXPEI¥DrruRE ON: Raising fimds Ckwitabk aclivitses TOTAL LXPEIYDITURE 20211 514.195 534,4( 20211 664,859 685,070 18588 630,947 649,535 150,664 150.664 NET INCOMEI(EXPEIYDrruRE) (177570) (91264) (268,833) 67,566 Transfers tween fill NET MOVEMENT IN FUNDS (177570) (91264) {268,833) 67,566 RECONCILJATION OF FUNDS Total fiM]dq bmught forward Total hnds Carried forwajd 311.870 134JOI 212,155 120,891 524.IY26 255,193 456,460 524.026 The Statement of Financial Activities includes all gains and losses in the year. All income and expenditure derive from Continuing activities. The notes on pages 13 to 23 forn] part of these fmancial statements. 10
DRAKE MUSIC BALANCE SHEET AS AT 31 MARCH 2024 Notes 2024 2023 Flxed Assets Tangbk assets Current Assets Debtors Cash at bank and in hand 6,691 A029 31885 240,061 271946 70J 477,016 547J16 Credltors Atnounts falling withTI aje year (24.444) 29J19 Net current assets 248501 517997 Totgl net assets 524 026 The Fundj of the Charity unreStrted Fut Restricted Fund8 12 134JOI 120.891 255,193 311*70 211155 524,026 For the year ending 31 March 2024 the company was entitled to ex¢mption from audit under section 477 of the Cotnpanies Act 2006 relating to small companies. The directors acknowledge their responsibiliti¢s for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements. The trustees have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 These financial statements have been prepared in accordance with the provisions applicable to companies subject to th¢ small companies, regime. The financial statements on pages 10 to 23 were approved by the Trustees on 12 December 2024 and signed on their behalf by Julian Stodd Chairn)an and Trustee Company Number: 02868675 {EngIand & Wales) 11
DRAKE MUSIC STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH 2024 Notes 2024 2023 Cash used in operating activities Net cash (used ll]ywovKled by q)cratll aCtivAS 16 (236,422) 47,579 Cwh fi7)m Anvestlng a¢llvltl¢s 2,109 Purch of tangble fLKed assets (7.773) Cash pyovlded byl (used) in investlng activities (533) 1109 (Decrea8eyincrease n casb and cash equivakn n the year (236954) 49,688 Cash arnl cash equwaknts at the lx81nnll oFihe year 47716 427328 T(rtal cash and cash equlvaknts at the end of the year 240,061 477,016 12
DRAKE MUSIC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 l. Accounting Policies l. l Accounting convenlion The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended PractiLe applicable to charities prcparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicablc in the ljnited Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011. the Companies Act 2006 and UK Generally Accepted Accounting Practice. Drake Music meets the dcfinition of a public benefit entity under FRS 102. Assets and liabiliti¢s arc initially recognised at historical cost or transaction valu¢ unlcss otherwis¢ stated in the relevant accounting policy note5. The Trustees consider there are no material uncertainties about the Charity's ability to wntinuc as a going concern. 1.2 Charity infonnalion Drake Music is a register¢d charity, registration number 1034374 and in consequence is exempt from taxation on income arising from and expended on its charitable aclivilies. The charity is a company lirnited by guarantee, incorporated in England and Wales. The regislered office is Richniix, 35-47 Bethnal Green Road, London, El 6LA. The financial statements are prepared in sterlin& which is the functional currency of the charity. Mone amounts in these financial statements are rounded to the nearest £. During the year, the affairs of the Association were managed by the Committee of Management who constitute Directors for the purposes of the Companies Act 2006. In the event of the charity being wound UP) the liability in respect of the guarantee is limited to £1 per Trustee of the charity. The financial statements are prepared under historical cosl convention. The principal accounting policies, all of which have been applied consistently throughout the year. J.3 Going Concern The financial staten]ents have been prepared on a going concern basis. The trustees assess wh¢ther the use of going concern is appropriate i.e. whether there aT¢ any material uncertainties related to evcnts or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of onc year from the date of approvaI of the financial statements. In particular, the trustees have considered the charttable Company's forecasts and projections and have taken account of pressures on fee income in the lit of coronavirus pandemic. The trnstees have concluded that there is a re&sonablc cxpectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future and for at least 12 months from the date of approval of these fitw)cial statements. The charitable company therefore conlinues to adopt the going concern basis in preparing its financial stat¢ments. FiKedAssels Individual fixed assetscosting £500 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairnlent losses. 13
DRAKE MUSIC NOTES TO THE FtNANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Depreciation apdamorftsation Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows: Asset clays Computer & Officc Equipm¢nt Project Equipment Accessible Musical Instrument Collection Depreciation method rale three years straight line tbree years straight line three years straight line 1.5 Income and epdowments All income is rccognised oncc the charity has entitlement to the income. it is probable that the income will be received and the amount of the income receivabl¢ can be MsUred reliably. Donations andlegacies Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of perfomance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfjlment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period. Grants receivable Grants are reCOlSed when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where perforniance conditions are attached to the grant and are yet to be met, the income is recOlsed as a liability and included on the balance sheet as deferred income to be rele&8ed. Deferred income Deferred income represents amounts re£eived for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when: - The donor specifies that the grant or donation must only be used in future accounting periods" or - The donor has imposed Conditions which must be met before the charity has unconditional entitlement. Investment income Dividends are recognised once thc divid¢nd has been declarcd and notification has been received of the dlvidend due. Expenditure All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement Ès required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggr¢gate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs. Raisingfvnds These ate ¢osts incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds. 14
DRAKE MUSIC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Charilable activities Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support th¢m. Support costs Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capit staff cosls by the time spent and other costs by their usage. Governance costs These include the costs attributable to the charity's Compliance with constitutional and statutory r4uirements, including audit, strategic management and trustees, meetings and reimbursed expenses. Governmen¢ grants Government grants are recognised b&8ed on the accrual model and ar¢ measured at the fair value of the asset received or receivable. Grants are classified &$ relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income. Debtors and credilors receivable/payable wiihin oneyear Trade debtors are amounts due from customers for merchandise sold or scrvices perfornled in the ordinary course of busin¢ss. TTade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest metho(L less provision for impairnient. A provision for the impairnient of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original temis of the receivables. CLuk and cayh equivalents C&gh and cash equivalents comprise cash on hand and call deposits, and other short-terni highly liquid investments that are Teadily convertible to a known amount of cash and are subject to an insignifi¢aDt risk of change in value. Trade creditors Trade creditors are obligations to pay for goods or services that have been aCqUid in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional righL at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the rewirting date, they are presented as non-currenl liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. 2.3 Charitablefunds Unrestricted income funds are general funds that are available for us¢ at the trustees, discretion in furtherance of the obje¢tiv¢s of the charity. 15
DRAKE IUSIc NOTES TO THE FFNANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Restricted income funds are those donated for use in a particular area or for specific purpose% the use of which is restricted to that area or purpose. 2.4 Ifzrepurchase andfinance leages Leases in which substantially all the risks and rcwards of Owneip ar¢ retained by the Icssor are cl&ssified &s op¢rating le&%es. Renta15 P&tyable under operatin¥ leeS are chargeAJ in the Statement of Financial Activities on a straight linc b&sis over thc lcase tcnn. 2.5 PensiopLY and oiherpost retirement obligations The charity contributes to defined contribution pcrsonal pcnsion schemes of staff atth¢ rate of 30/0 of annual salary. The cost of providing pensions for employees is charged to the Statement of FiDancial Activities in the year in which the contributions are due. 2.6 FinLincial ipAYlruments Cl¢7ssificalion Financial assets and financia] liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered iTrto. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities. Recognition and merement All financial wets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is nornially the transaction price excluding transaction costs). unless the Tangernent constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financial assets and liabilities are only offset in the statement of financial p051tion Whe and only when there exists a legally enforccable right to set off the recognised amounts and th¢ charity intends either to s¢ttle on a net b&sis. or to realise the &%set and scttle the liability simultaneously. Financial asscts are derecognised whcn and only when a) the contractual rights to th¢ cash flows from the financial asset expir¢ or Settle b) the charity transfers to another paty substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all. significant risks and rewards of ownership, has transfeTred control of th¢ asset to another party. Financial liabilities a[¢ derecogniKd only when the obligation specified in the contract is discharged, cancelled or expires. 16
DRAKE MUSIC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Critical accounting estimates and judgements Preparation of the financial statements requires man&ement to make judgements, estimates and &%sumptions about the carrying arnount of assets and liabilities that are not readily apparent from other Sources. The estimates and associated assumptions arc cascd on historical exp¢ri¢ncc and other factors that aT¢ considered to be relevant. Actual results my differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revision to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Judgements Management have not made any individwal critical accounting judgements that are material to the chlty. Key sources ofeslipnalion w2cerlainty Key sources of estimation uncertainty are those which present a significant risk of potential material adjustments to carrying amounts of &%s¢ts or liabilities within the next financial year. Th¢s¢ are outlined below: Tang1blefedUsSelS The annual depreciation charge for prop¢rty, plant and equipment is sensitive to changes in the estimat¢d useful economic lives and residual values of the assets. The useful economic lives and residual va]ues are re-assessed annually. They are amended when neccssary to r¢fl¢ct current estimates, based on technological advancemenL future investments, economic utilisation and the physical condition of the assets. See accounting policies for the useful economic lives for each class of asset. The carrying amount is £6,691 (2023-£6,029). 17
DRAKE MUSIC NOTES TO THE FtNANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 3.1 Income frnm donations and legacies Unrestricled Reshctsd 2024 Total 2023 Tolal Donation 31,644 31,644 2,846 Grqnt income Arts Councl Engknd . accessR)k MUSK insirument co]kction Arts Counca Engknd . NPO 224.565 PRS FoK)n Access to Work Edward Gost]ing FOundatll Cty Br Tn A&H Plknlgton Keyston¢ Fund Youth Music Joyce Fletcher Charitabk Trust Masonic Charitabk Trust Ragdoll FoundatM)n The Harold Hyam Win8ate Foundation Esmee Fairbaim Foundation Youth Music Catatyser Natu)nal Lottery Community Fund Foyle Foundation D'oyty Carte CT John James FoundatK)n Quartet Con]munty Foundation 89.655 197.615 13.400 21,560 8.000 9,000 3,000 224,565 13,400 13,400 27.000 27,000 20.000 20,000 122,960 5,000 19.400 4.000 6,000 50,822 59.850 9,832 15,000 5.000 5.000 4.000 5.000 5.000 59,400 4,000 5.000 5,(KiO 335,609 276,209 637,940 3.2 Income from charitable activities Unrutrlcted Restricted 2024 Total 2823 Tolal 50,582 1.223 (1,175) 6.088 50,582 56,185 5.000 10,000 5,867 Thll2 R¢search and devek)pment Arts and collaborat)ns (1,175) 6.088 56,718 56,718 77.052 18
DRAKE MUSIC NOTES TO THE FFNANCIAL STATEmE1s FOR THE YEAR ENDED 31 MARCH 2024 4. Income by activity Arts 4nd P4Trtldpathi R¢Jearch and ThrRk22 17,400 4,345 1.743 1S.0(Y) 27,000 274.565 333.965 4.345 52.373 23,910 Ean)¢d In¢om¢- Int¢tnational Earne4 Jncome- UK 50.582 (1,175) 1,223 23.910 23.488 1,223 3(.119 416.237 5. Total expenditure 2024 Tirtal 2023 Tolal 5.1 Charitable Ydctivities Project costs Direct costs Premises costs Pub]icty and promotion DeFreciatioo amorti8ation and otheT sllnkn costs Staff costs spOrt costs 12,739 142,955 43,569 6,562 7,111 327,904 124,019 664,859 23.786 209277 40,838 1,945 11,743 234279 109,079 630,947 Support costs Stafftraillll and recruitn]ent Office expenses Travel and subsistence Governance costs Indendent examination Ccnsultancy and trainll Legal and professional fees Bank charges 5,692 9,558 23,816 32,578 6,381 155 1192 26,625 35,925 220 2,5CK) 30,175 52,084 193 124,019 109,080 19
DRAKE MUSIC NOTES TO THE FANCIAL STATEMENfs FOR THE YEAR ENDED 31 MARCH 2024 6. Staff costs Staff $ts for the year w¢re as follows: 2024 2023 Sa]aries and wages Redundancy payment Social Secwity costs Staff pensKm costs 302.763 198,350 23,937 7.506 4.486 234.279 18.345 6,796 327.904 The avera number of staff empbyed during the year. was as follows: 2024 2023 Charitable activitses Ther number of employees whose emoluments fell withn] the following bands was: 2024 2023 £60,001- £70,000 7. Tangible Assets Pmject Office Accessible F4llipment Equipment Instruments Total Cost At l April 2023 Additions At 31 March 2024 84.254 14.464 34,968 133.686 141459 Depreciation At l April 2023 Chargr for year At 31 March 2024 84,254 14,028 29,376 127,658 Net Book Value At 31 March 2024 At 31 March 2023 20
DRAKE MUSIC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 8. Debtors 2024 2023 Trade debtors A¢¢rued income Other debtors 8,852 13.524 10.509 32.885 l4,729 45,062 10.509 9. Creditors 2024 2023 Trade Creditors Accruab Dcfeffed incomc Other creditors ial secwity and other tax 12,187 2.400 18,840 4,977 1368 2,847 1287 29319 8,415 10. Taxation status The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. 11. Trustees remuneration and expenses No trustees, nor any persons connected with them, have received any r¢munerntion from the charity during the year. No trustees have received any reimbursed expenses or any other benefits from the charity during the year. 21
DRAKE MUSIC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 12. Reconeiliation of funds As at l April 2023 As4t31 Traasferj March 2024 Restrkt¢dfMnds Income Erpendllwe Learnll¥ and training Research and devebpjknt Ats and colla1xrdtus 17,611 40829 17.120 30,114 46.631 59850 212,155 15,(KKI 27,(KK) 17.4(K) (13,454) (45913) (34520) (26,973) {19,999) (9,805) (15Q664) 19,157 21916 3,141 26,632 50,045 120891 Youth Muqic Catatyser 59.4(KJ GeneralFund$ 311,870 356I37 {534,40 134?01 ralIndS 524,026 416237 685,070 255,193 13 RtrIcted funds The specific purposes for which the funds are to be applied are as follows: Learning, participation & training - work in this progrdmme received support from the Masonic Charitable Trust and Ragdoll Foundation. Research & Development: project receiv¢d support from the City Bridge Trust, National Lottery Community Fund and the Edward Gostling Foundation. Arts & Collaborations: National programme support w&s received from the PRS Foundation, A&H Pilkington, Foyle Foundation, Harold Hyam Wingate Foundation and The Esmee Fairbairn Foundation. Think 22 is nationally supported by Youth Music Strat¢gic Fund C. The Youth Musi¢ Catalyser fund is for the pury)ose of delivering the Future Leaders programme. 14. Operating lease commitments At 31 March 2024 the company was committed to making the following paym¢nts under non- cancellable operating leases: 2024 2023 Payments due 16,315 35.893 22
DRAKE MUSIC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 15. Deferred income Income of £Nil (2023: £1,368) has been deferred to match the period to which the renlal income belongs: 2023 Rent r¢ceiv¢d - £1,368 Income of £1,368 was released in the current period. 16. Reconciliation of net ineomel(expenditure) to net cash flow from operating activities 2024 2023 Net movements lli fim (268,833) 67.566 Add back: Deprecydt 7,111 11.743 Deduct: Intsrest show in investing actiVitS (7W) (2,109) Decreasel(rKrease) rl debtors 37,415 (14,( (Dccrea5cyincrease n credtors (4.875) (15,614) (236,422 47,579 23