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2020-07-31-accounts

REGISTERED COMPANY NUMBER: 03118107 (England and Wales) REGISTERED CHARITY NUMBER: 1050105

REPORT OF THE TRUSTEES AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

FOR

NEWHAM MUSIC TRUST

Raffingers LLP 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD

NEWHAM MUSIC TRUST

CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31 July 2020

Page
Report of the Trustees 1 to 15
Report of the Independent Auditors 16 to 18
Statement of Financial Activities 19
Balance Sheet 20
Cash Flow Statement 21
Notes to the Cash Flow Statement 22
Notes to the Financial Statements 23 to 31

NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES for the year ended 31 July 2020

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 July 2020. The trustees have adopted the provisions of 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).

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NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES for the year ended 31 July 2020

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objects of the Charity are for the public benefit:

By achieving its objectives, Newham Music Trust aims primarily to benefit the community of Newham. Where its activities are outside the Borough of Newham the charity also aims to benefit the communities of London. The Trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers or duties.

Our Vision

Newham Music Trust will deliver a stimulating and exciting range of high quality musical experiences for children and young people. The Trust will provide accessible opportunities for creativity and self-fulfilment, enriching lives through the powerful and transformational influence of music.

Our Mission

To promote the well-being and development of every child through a broad range of musical and cultural opportunities.

Our Values

The following values underpin our strategy:

Stakeholder Focus: We are committed to working with our stakeholders and partners to improve all aspects of provision and provide music services of the highest standards.

Caring: We will identify and respond to the welfare and well-being of staff, teachers, families and pupils. We will maintain our caring ethos and child protection procedures to support the safety and security of all children and young people.

Leadership: We will provide, support and develop musical, educational and organisational leadership at all levels.

Integrity: We will maintain the highest standards of trustworthiness, openness and accountability for decisions and actions.

Innovation: We will work with creativity and imagination to challenge existing practices and processes and provide fresh solutions in response to change.

Fairness: We will demonstrate that in all our dealings with individuals and groups we are consistently just, honest and inclusive. We will provide schemes to remove financial or other perceived barriers to participation in accordance with equal opportunities and inclusion policies.

Flexibility : We will create a climate that enables people to adapt and respond to changing circumstances and be confident in dealing with change.

Teamwork: We will work together internally, and with our partners, in an open and honest environment to achieve agreed goals. We recognise that only by working together can the maximum benefit to our communities be achieved.

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NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES

for the year ended 31 July 2020

OBJECTIVES AND ACTIVITIES

Strategic Goals

Newham Music Trust has translated its vision into a number of strategic goals. These goals are key outcomes and deliverables for stakeholders and partners. They outline what Newham Music Trust aims to achieve, namely to:

Key Aim

To provide all children and young people, whatever their background or circumstances, with the opportunity to access a music education of the highest quality.

Volunteers

The charity is grateful for the efforts of its volunteers who are involved in the activities of the charity. They play an important role in enabling the charity to meet its objectives.

Support in Kind

Significant support was provided in-kind from partners for venue hire fees totalling approximately £67,000 which includes but is not limited to: office space, room hires for Academy, Newham Show Marquee, weekly rehearsal space for Newham After-school music centres, weekly venue hire in community centres across Newham for Studio Sessions, creation workshop and performance support for Newham's Community Opera at the Royal Albert Hall.

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NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES for the year ended 31 July 2020

ACHIEVEMENT AND PERFORMANCE

Newham Music Trust is committed to providing high quality music education and opportunities for children and young people throughout the borough of Newham. NMT continues to develop and improve our wide-ranging and accessible music offer both in schools and the community.

In March 2020, the nation went into lockdown in response to the onset of the Covid-19 pandemic, with all but essential services being forced to close. The impact on individuals and on organisations has been significant, in many cases devastating.

Newham Music Trust remained steadfast in our determination to support children and families, bringing school communities back together in lockdown, through music. We focused on pupils' wellbeing, helping everyone continue their music-making and learning, in school and in the community. NMT implemented swift and creative actions, adapting provision in the context of our remit, to deliver on the core and extension roles set out in the National Plan for Music Education. Music lessons and sessions transferred to online platforms with innovative developments in ensemble and singing provision online, as well as targeted training for teachers with new resources being made available for pupils, families and schools.

Key Facts and Figures for 2019-20:

Key Partners:

ABRSM, Addictive TV, Ambition Aspire Achieve, Arts Award, Arts Council England, Barbican Guildhall, Barking and Dagenham Community Music Service, Brolly Productions, Charanga, Community Links, DECODA, Drake Music for disabilities, Gateway 2 Music, Girls Rock London, Hackney Music Service, Havering Music School, Jack Petchey Foundation, Living Song, London Music Fund, London Royal Docks, London Symphony Orchestra, London Youth, Mayor of London, Music for Youth, MusicTutors.co.uk, Newham Council, Newham Youth Empowerment Service, Orchestra of the Age of Enlightenment, Portsmouth Music Hub, Redbridge Music Service, Rosetta Arts, Ruff Sqwad Arts Foundation, Sound Connections, Stratford East, The House Mill, Tower Hamlets Arts and Music Education Service, V&A Museum, Waltham Forest Music Service, Westfield Stratford City, Youth Music.

Cultural Education Challenge

Through delivery of the core and extension roles, Newham Music Trust supports Arts Council England's Cultural Education Challenge and contributes to Local Cultural Education Partnerships in a variety of ways.

Newham Music Trust, in partnership with East London Music Alliance of Music Education Hubs, embarked on a collaborative to develop a 4-year musical inclusion strategy and action plan, setting the foundations to build an inclusive music education culture where all children and young people are valued and recognised for their unique qualities, ideas, voices and perspectives. The purpose is to broaden the range of children who engage with music, particularly those children in challenging circumstances and to identify and put in place those things that will help NMT do the work better. Newham Music Trust Trust is a founding partner in the Newham Cultural Education Partnership. NCEP is purposed to encourage Partners to shape their community approach, delivering joined-up, consistent and bespoke programmes of music and arts events and opportunities for children and young people.

Newham Music Trust, in partnership with East London Dance, set up the East London Arts Fundraisers' network with over 20 cross-arts organisations in the partnership fundraising network. ELAF was formed to strengthen the knowledge-base and effectiveness in optimising additional funding, sharing best practice and outcomes at networking meetings, conferences, training days and courses.

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NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES for the year ended 31 July 2020

Newham Music Trust plays a significant role in the East London Cultural Education Alliance, formed to bring together a number of partners across east London to ensure that the existing provision, learning and support for cultural education is available to all young people and delivered in the most effective way. ELCEA is an alliance of cultural organisations and East London Council representatives which aims to maximise the impact of cultural education across East London. Newham Music Trust supports Artsmark in schools with 44% of Newham schools already accredited Artsmark, recognising the creative development of individual young people. Arts Award is encouraged and embedded in NMT practice with subsidised fees for students taking Arts Award through our Schools and Academy programme. Arts Award is also built-in to NMT strategic development areas including: Learning through Music, Studio Sessions, Music Unlocked and Music Connected.

Successes and Challenges

In recent years, NMT has engaged in a drive to increase and diversify income sources. The focus on financial resilience continues throughout this challenging period, with key decisions taken to reduce our exposure to certain risks, for example, by revising the contracts for schools and teachers, where income is dependent on work delivered and achieving results.

In November 2019, Newham Music Trust was awarded a Young Londoner's Fund of £144,000 to support NMT in developing our Street, Studio, Success music sessions in various settings in the borough: PRU, schools and community centres. The core target being Young People at risk of exclusion, or already excluded from mainstream programs, and those who are vulnerable and/or a risk to others.

In June 2020, Newham Council agreed to continue with the NMT-designed School Music Grants scheme with 90 schools applying for grants ranging from £2.5k to £10k, amounting to a total of c. £626,000 ring-fenced for music enrichment activities in school. Newham Music Trust worked closely with Newham Council to ensure that music is central to a recovery curriculum focused on pupils' wellbeing and bringing school communities back together.

Grants and Donations are increasingly important in diversifying income sources for NMT. A renewed drive for funding has been undertaken throughout 2019-20. There is also an added focus on Covid-19 funding support programmes. This has created additional income currently at £101,910, which amounts to an additional 18% of our core funding allocation.

Newham Music Trust continues to consider how we protect Reserves to guard against the impact caused by a sudden shock such as Covid-19 and lockdown. NMT adheres to guidance from the Charity Commission in respect of our reserves policy. NMT reserves currently stand at 5 months based on current provision including free reserves standing at 3.2 months.

Risks and mitigations are identified in the NMT Business and Delivery Plan and in the Business Stabilisation Plan. These are updated as the challenges evolve. The NMT Risk Matrix is kept under constant review with a focus on the vital current issues, updating as circumstances change.

Significant support was provided in-kind from partners for venue hire fees totalling approximately £67,000 which includes but is not limited to: office space, room hires for Academy, Newham Show Marquee, weekly rehearsal space for Newham Grooves, weekly venue hire in community centres across Newham for Studio Sessions, creation workshop and rehearsal space at schools and the Royal Albert Hall for Newham's Community Opera.

Partnerships

Newham Music Trust's well-established and highly credible brand, together with its positive relationships with partner schools, families and communities, has provided a pathway for Hub Partners to engage more effectively and to provide unique services, events and educational opportunities.

Newham Music Trust has been working closely with Newham Council to ensure that music is central to a recovery curriculum focused on pupils' wellbeing and bringing school communities back together. Newham Council has agreed to continue with the NMT-designed School Music Grants scheme to the amount of c. £626,000

Young Londoner's Fund of £144,000 to support NMT in developing our Street, Studio, Success music sessions in various settings in the borough: PRU, schools and community centres.

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NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES

for the year ended 31 July 2020

NMT is also working in partnership with Newham Youth Empowerment Service in 4 youth action zones across the borough. The core target is Young People at risk of exclusion, or already excluded from mainstream programs, and those who are vulnerable and/or a risk to others.

Music Unlocked: for children & young people with special educational needs and disabilities

As a founding partner in the Newham Cultural Education Partnership, Newham Music Trust is better placed to support and encourage partners to shape their community approach. Newham Harmony is a great example, with NMT, Youth Music and Stratford Arts Trust partnering in a borough-wide singing programme to include over 2,000 young people in 30 schools.

Needs Assessment

Newham Music Trust is meticulous about seeking feedback from a range of stakeholders, listening to children & young people, families, schools, community groups, partners and other key stakeholders throughout this difficult time. Consultation and data collection throughout this period is greatly increased, across many groups and areas including:

Equality, Diversity and Inclusion

Newham Music Trust is committed to inclusion and has embarked on a long-term and ground-breaking programme to instigate real-change. We are working closely with other Music Education Hubs, Arts Council England, DfE, and other interested funders and organisations. The Newham Music Trust EDI strategy sets the foundations to build an inclusive music education culture.

There are four key strands to the NMT strategy, with equity at the core:

An array of measures and changes have been introduced including:

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NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES

for the year ended 31 July 2020

EDI developments also include:

Core Roles

Newham Music Trust has successfully delivered on the Core Roles set out in the National Plan for Music Education, throughout 2019-20. During lockdown, music provision did reduce building to 60% of normal into the summer term, across 85% of schools, returning to full provision for September 2020.

Successes through the lockdown period included:

Music Projects

Progression for all young people

Ensuring that music continues in these challenges times is the bedrock of the NMT progression strategy. NMT has enacted a turnaround in our provision to ensure music continues throughout Covid, with provision for 2020-21 at the same levels as the beginning of the 2019 -20 academic year.

The NMT strategy ensures progression for all our young people is grounded in the many and varied progression routes with in-built access points for young people of different ages, at different ability levels, with interests in a wide range of musical activities and genres, including:

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NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES

for the year ended 31 July 2020

Extension Roles

Newham Music Trust has successfully delivered on the Extension Roles set out in the National Plan for Music Education, throughout 2019-20.

Continuing Professional Development:

SEND/Inclusion

Newham Music Trust's newly devised Equality, Diversity and Inclusion (EDI) team has been working to create and embed our EDI Strategy throughout our provision. Training and CPD included:

Adapted provision:

NMT engaged with an array of online possibilities to ensure that music continued throughout lockdown. Key to the success in implementing delivery change was the provision of significant training, support and ongoing CPD in the effective and safe use of online platforms, for the entire NMT teaching and office team and for teachers in schools.

Safeguarding:

The new emphasis on online delivery required a comprehensive review and additional focus on online safety and safeguarding guidance, with training for teachers and schools. NMT safeguarding has been cited by schools as excellent with Newham Council sharing the NMT guidance with all schools.

The safety and wellbeing of our young people, teachers and staff are paramount. All NMT staff have been trained in risk needs and are provided with PPE - visor, screen, gloves and sanitiser.

NMT Teacher Leaders: newly-created posts to support the drive to achieve the highest standards in teaching and learning.

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NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES for the year ended 31 July 2020

Newham Music Trust/ABRSM: partnership as London centre for the Certificate for Music Educators accreditation (CME).

NMT Musician-in-Residence Task Force: providing outstanding and wide-ranging practitioner support for music departments in secondary schools.

Instrument loan service:

NMT instrument loan scheme is primarily delivered by Newham Music Trust in partnership with schools. The scheme offers a range of instruments at affordable hire rates and free of charge, with full remissions in place for those pupils in receipt of free schools meals and children and young people who are looked after by the local authorities. With some of our partner schools, we have also entered into an equipment sharing agreement.

Access to large scale and / or high quality music experiences for pupils, working with professional musicians and / or

venues:

Digital Strategy

Newham Music Trust's adapted approach in digital provision has contributed to securing a more stable position in the current upheaval. Our provision for the coming year is consistent with that at the beginning of 2019. The level of take-up of the NMT digital offer throughout the lockdown period reached c.60% across c.85% of our schools, compared to 'normal'.

Our most significant additional investment in the lockdown period was in IT - online learning platforms, technology for all staff, training in new technologies, high quality video production, and innovative ways of delivering music lessons and sessions, remotely.

Digital Development:

Digital Music Projects:

School Music Education Plan (SMEP)

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NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES

for the year ended 31 July 2020

FINANCIAL REVIEW

Financial position

The financial results for the year to 31 July 2020 are shown in the attached financial statements.

Total income for the year was £998,693 (2019 - £1,016,907) and total expenditure was £977,490 (2019 - £950,871).

There was a net increase in funds of £21,203 (2019 - 66,036) with total unrestricted funds carried forward of £418,048 (2019- £420,897)

The trustees acknowledge that the debtors figure in the financial results is due to late payments received after 31 July 2020.

Investment policy and objectives

The charity has no investments. The charity does ensure that interest is earned on any surplus bank deposits it may have from time to time.

Reserves policy

The trustees have examined the requirement for free reserves i.e those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed. The trustees consider that, given the nature of the charitable company's work, the level of reserves should be equal to approximately six months of expenditure.

At 31 July 2020 the charity had unrestricted reserves of £418,048 (2019: £420,897) and restricted reserves of £46,615 (2019: £22,563).

Pay policy

The pay for senior staff is reviewed annually and benchmarked against pay levels for other organisations of a similar size delivering equivalent services.

Equlity & diversity policy

Newham Music Trust celebrates the diverse cultures, communities and environments that make up our society and the multitude of dimensions which characterise our diversity including; age, disability, gender, marriage or civil partnerships, pregnancy, race, religion or belief, sex, and sexual preference.

Further details of the chariry's policy could be obtained at - https://www.newham-music.org.uk/about-us/policies-procedures/

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NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES for the year ended 31 July 2020

FUTURE PLANS

Newham Music Trust is ambitious for further development and will continue to extend the range and quality of music education opportunities for children and young people across the borough. Our drive to improve the artistic and music offer will be supported by funding through our Music Education Hub status with Arts Council England, from schools, and through strengthened partnerships with organisations who support our work.

NMT is implementing a significant music & social inclusion programme across the borough - a commitment to create new & innovative 'pathways into learning'. Priority focus for the coming period will include:

- Music Unlocked: for children & young people with special educational needs and disability (SEND) - to 'inspire' through performance opportunities, and to deliver 'sessions and lessons' in schools, at events, and in all neighbourhoods across Newham. 'Pathways' include:

Learning through Music (LtM): A landmark scheme enables young children (3-7) to develop through music across wider curriculum areas including: language and literacy; mathematics and numeracy; personal development and mutual understanding; independent learning skills; confidence and self-esteem. In its second year LtM has enabled over 1500 children to develop through music.

Music Education Action Zones : 8 Music Centres across Newham, providing opportunities for young people to continue their musical development outside school in bands, choirs and ensembles, socialising with pupils from other schools and to benefit from a range of progression routes, deepening engagement and enriching the offer locally.

Newham Music Academy : our Exceptionally Talented Mentoring Schem e provides a unique opportunity for young musicians to be challenged and encouraged to develop their musical potential, in and out of school. Over 300 outstanding pupils identified by schools and community organisations engage in a blend of mentoring, musical workshops with leading figures and collaborative music making.

Music Connected: bringing together the vibrant and diverse communities of Newham promoting their cultural traditions, showcasing their music in schools and community centres. Supporting and upskilling community musicians and teachers providing resources, training and professional development.

Covid 19

Since the beginning of the 2020, the Covid 19 pandemic has developed rapidly, with significant social and economic impact. We have taken a number of measures to monitor and ensure the health and safety of our employees, volunteers and end beneficiaries. We have adapted our charitable and fundraising activities, to comply with government's policies and guidance, as detailed under Achievement and Performance section of this report.

At this stage, the impact onour ability to continue with our charitable activities is minimal.

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NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES for the year ended 31 July 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is a company limited by guarantee as defined by the Companies Act 2006. The company was incorporated on 19 October 1995 with the objective of providing musical educational facilities for schools in the London Borough of Newham. This was formerly the responsibility of the local authority. The company is registered in England and Wales under registration number 03118107. The company was registered with the Charity Commission on 23 October 1995 under registration number 1050105.

The charity's governing document is its memorandum and articles of association dated 19 October 1995.

The Board of Trustees is the charity's governing body. The trustees are the company's directors and are not required to be members of the company.

It is the responsibility of the Board of Trustees to manage the business and affairs of the charity. The articles of the association provide that there shall be not less than four governors and not more than twelve. Trustees retire by rotation every three years and are able to offer themselves for re-election.

There are restrictions on local authorities and individuals associated with local authorities becoming governors. The aim of this is to preserve the independence of the charity so that it does not become subject to influence by a local authority.

Recruitment and appointment of new trustees

Trustees are recruited for their skills and experience. Where a gap in an area of expertise is identified the charity seeks to recruit someone with the appropriate abilities. They are individuals involved in education, commerce or community work.

There are restrictions on local authorities and individuals associated with local authorities becoming governors. The aim of this is to preserve the independence of the charity so that it does not become subject to influence by a local authority.

Organisational structure

It is the responsibility of the Board of Trustees to manage the business and affairs of the charity. The articles of the association provide that there shall be not less than four governors and not more than twelve. Trustees retire by rotation every three years and are able to offer themselves for re-election.

There are restrictions on local authorities and individuals associated with local authorities becoming governors. The aim of this is to preserve the independence of the charity so that it does not become subject to influence by a local authority.

Decision making

The Board of Trustees meet throughout the year to review the running of the charity. The charity has a chief executive who is responsible for controlling its daily operations. The chief executive reports to the Board of Trustees.

Induction and training of new trustees

Trustees are recruited for their skills and experience. Where a gap in an area of expertise is identified the charity seeks to recruit someone with the appropriate abilities. They are individuals involved in education, commerce or community work. All new trustees are properly inducted and informed about the work of the charity.

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NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES

for the year ended 31 July 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Risk management

The charity has considered the risks that may have a significant effect on its operational performance, the achievement of aims and objectives and meeting the expectations of stakeholders.

Currently, banking arrangements are normalised and early fundraising targets are being met. A revised Business Stabilisation Plan has been written and submitted to Arts Council England along with a detailed budgetary forecast up to April 2021.

The award of the hub status has secured financial stability for the medium-term. However, due to current economic uncertainty and the political climate, the future beyond 2021 is uncertain. We do, however, have time to explore different financial and organisational models and to strengthen the services we provide. In addition, the award of hub status means we must develop much closer relationships with partners and seek to lead, support, galvanise and leverage resources in a much more proactive way where possible and appropriate.

The charity predominantly works with children. The trustees recognise the absolute necessity of ensuring the protection and safety of those the charity serves. This means the trustees and all those who work or volunteer for the charity must obtain clearance from the Disclosure and Barring Service (DBS). A Safeguarding Officer is nominated and safeguarding training is compulsory for all staff.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

03118107 (England and Wales)

Registered Charity number

1050105

Registered office

Unit 13 St Luke Business Centre 85 Tarling Road Canning Town London E16 1HN

Trustees

Mr J C Brannick Chair Ms C H Bowden Vice Chair Mrs M J Lane Director Mr J L Barber Director Mrs F Cullen Director Ms M Callender Director Mrs E A Oriakhi Director Mrs S H Beckett Director Mr J Boux Director Mr T Lintern Director (resigned 26.11.19) Mr. E. B. Niman Director (appointed 26.11.19)

Company Secretary

Mr J Bergin

Senior Statutory Auditor

Mr Thurairatnam Sudarshan FCCA

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NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES

for the year ended 31 July 2020

REFERENCE AND ADMINISTRATIVE DETAILS

Auditors

Raffingers LLP 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD

Bankers

Barclays Bank Plc Plaistow Branch 737 Barking Road London E13 9PL

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Newham Music Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

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 those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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:

AUDITORS

The auditors, Raffingers LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

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NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES

for the year ended 31 July 2020

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 11 January 2021 and signed on its behalf by:

Mr J C Brannick - Trustee

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NEWHAM MUSIC TRUST

Opinion

We have audited the financial statements of Newham Music Trust (the 'charitable company') for the year ended 31 July 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis 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 Auditors' 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

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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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NEWHAM MUSIC TRUST

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 Report of the Trustees.

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion;

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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.

Our 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 a Report of the Independent Auditors 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NEWHAM MUSIC TRUST

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 auditors' 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.

Mr Thurairatnam Sudarshan FCCA (Senior Statutory Auditor) for and on behalf of Raffingers LLP 19-20 Bourne Court Southend Road Woodford Green Essex IG8 8HD

11 January 2021

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NEWHAM MUSIC TRUST

STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 July 2020

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
4
Other grant income
Grant to cover the expenses towards the delivery of
the core roles
Fees receivable
Investment income
3
Total
EXPENDITURE ON
Charitable activities
5
Cost of music education and activities
Fund-raising costs
Total
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
14,433
-
-
324,881
587
339,901
337,527
5,223
342,750
(2,849)
420,897
418,048		 Restricted
fund
£
70,899
-
575,961
11,932
-
658,792
634,740
-
634,740
24,052
22,563
46,615		 2020
Total
funds
£
85,332
-
575,961
336,813
587
998,693
972,267
5,223
977,490
21,203
443,460
464,663		 2019
Total
funds
£
106,276
4,510
574,866
330,831
424
1,016,907
942,134
8,737
950,871
66,036
377,424
443,460

The notes form part of these financial statements

Page 19

NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

BALANCE SHEET

31 July 2020

Notes
FIXED ASSETS
Tangible assets
10
CURRENT ASSETS
Debtors
11
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
12
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
14
Unrestricted funds
Restricted funds
TOTAL FUNDS		 2020
£
138,445
26,923
332,530
359,453
(33,235)
326,218
464,663
464,663
418,048
46,615
464,663		 2019
£
147,482
61,593
299,451
361,044
(65,066)
295,978
443,460
443,460
420,897
22,563
443,460

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 11 January 2021 and were signed on its behalf by:

Mr J C Brannick - Trustee

Ms C H Bowden - Trustee

The notes form part of these financial statements

Page 20

NEWHAM MUSIC TRUST

CASH FLOW STATEMENT for the year ended 31 July 2020

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in 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		 2020
£
40,918
40,918
(8,426)
587
(7,839)
33,079
299,451
332,530		 2019
£
85,353
85,353
(17,253)
424
(16,829)
68,524
230,927
299,451

The notes form part of these financial statements

Page 21

NEWHAM MUSIC TRUST

NOTES TO THE CASH FLOW STATEMENT for the year ended 31 July 2020

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES OPERATING ACTIVITIES
2020 2019
£ £
Net income for the reporting period (as per the Statement of Financial
Activities) 21,203 66,036
Adjustments for:
Depreciation charges 17,463 18,645
Interest received (587) (424)
Decrease/(increase) in debtors 34,670 (36,305)
(Decrease)/increase in creditors (31,831) 37,401
Net cash provided by operations 40,918 85,353
2. ANALYSIS OF CHANGES IN NET FUNDS
At 1.8.19 Cash flow At 31.7.20
£ £ £
Net cash
Cash at bank and in hand 299,451 33,079 332,530
299,451 33,079 332,530
Total 299,451 33,079 332,530

The notes form part of these financial statements

Page 22

NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 July 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The 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 2015) - (Charities SORP (FRS 102)), and the Companies Act 2006. These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the trustees to make significant judgements and estimates.The items in the accounts where these judgements and estimates have been made include:

Going concern assessment

The trustees, having made appropriate enquiries , consider that adequate resources exists for the charity to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt going concern basis in preparing the financial statements as at and for the period ended 31 July 2020.

The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts. The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed below.

In arriving at the conclusion, the trustees have considered the potential implications of the effects of Covid 19 on the charity. The figures for the period under consideration have not been significantly impacted by Covid 19 and the trustees are confident that no adjustments are necessary to the carrying value of the assets held at the balance sheet date.

With regards to the future, the most significant areas that may affect the charity are potential loss of income due to reduction in donations, fee income and fundraising activities. The trustees are confident that the actions taken by the charity, including embracing online platforms, will minimise the future impact of Covid 19.

Undoubtedly there will be challenges ahead but the trustees do not expect material concerns to arise over the charity's financial position or going concern.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Legacies are included in the statement of financial activities when the Charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the Charity.

Fees from the provision of music education comprise tuition and related fees paid in accordance with agreements between the charity and the respective schools or individual pupils' parents. Such income is recognised when the charity is entitled to receipt under the relevant contractual agreements.

Donated goods and services, including volunteers

Donated facilities and gifts in kind are included at the value to the charity where this can be quantified.

In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

continued...

Page 23

NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 July 2020

1. ACCOUNTING POLICIES - continued

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Governance costs

Governance costs which comprise the costs directly attributable to the governance of the Charity, including audit costs and the necessary legal procedures for compliance with statutory requirements, are allocated directly to the charitable activities to which they relate.

Status

The charity is a company limited by guarantee. The members of the company are its trustees as named in the Report of the Trustees. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

Tangible fixed assets

Musical instruments are included in the accounts at valuation based on existing use. These assets are not depreciated. Their value and condition are reviewed by the trustees every five years on a rolling basis.The instruments were last revalued in March 2018.

The remainder of the assets are stated at cost, net of depreciation.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 20% on cost Computer equipment - 20% on cost

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charity operates two pension schemes. A defined benefit scheme with the Teachers' Pension Scheme (TPS), which is only available to staff teaching staff. The administration of this scheme is dealt with by the Teachers' Pension Agency. In addition there is a Personal Pension Scheme administered by Peoples Pension which is available to all other employees.

Contributions to both Schemes are charged directly to the Statement of Financial Activities. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

continued...

Page 24

NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 July 2020

1. ACCOUNTING POLICIES - continued

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of settlement can be estimated reliably.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.

Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value except for bank loans which are subsequently measured at the carrying value plus accrued interest less repayments. The financing charge to expenditure is at a constant rate calculated using the effective interest method.

2. DONATIONS AND LEGACIES

Grants and donations
Donations from fund raising activities
3.
INVESTMENT INCOME
Deposit account interest		 2020
£
39,928
45,404
85,332
2020
£
587		 2019
£
65,562
40,714
106,276
2019
£
424

continued...

Page 25

NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 July 2020

4.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Fees receivable
Other grant income
Grant to cover the expenses towards the
Arts Council England
delivery of the core roles
Fees receivable
Fees receivable
5.
CHARITABLE ACTIVITIES COSTS
Direct
Costs
£
Cost of music education and activities
956,610
Fund-raising costs
5,223
961,833
6.
SUPPORT COSTS
Cost of music education and activities		 2020
2019
£
£
-
4,510
575,961
574,866
336,813
330,831
912,774
910,207
Support
costs (see
note 6)
Totals
£
£
15,657
972,267
-
5,223
15,657
977,490
Governance
costs
£
15,657

7. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2020 2019
£ £
Auditors' remuneration 8,160 10,138
Depreciation - owned assets 3,984 4,064

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 July 2020 nor for the year ended 31 July 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 July 2020 nor for the year ended 31 July 2019.

continued...

Page 26

NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 July 2020

9. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2020
£
600,345
33,936
24,672
658,953		 2019
£
574,298
29,841
28,141
632,280

The average monthly number of employees during the year was as follows:

Charitable activities
Fund raising
Management and administration		 2020
51
1
8
60		 2019
54
1
8
63

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2020 2019
£70,001 - £80,000 1 1

The charity uses volunteers during the musical concerts and other events.

10. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
Instruments
£
COST
At 1 August 2019
131,228
Additions
3,561
Impairments
(13,479)
At 31 July 2020
121,310
DEPRECIATION
At 1 August 2019
-
Charge for year
-
At 31 July 2020
-
NET BOOK VALUE
At 31 July 2020
121,310
At 31 July 2019
131,228		 Fixtures
and
fittings
£
41,228
1,249
-
42,477
32,702
1,717
34,419
8,058
8,526		 Computer
equipment
£
69,694
3,616
-
73,310
61,966
2,267
64,233
9,077
7,728		 Totals
£
242,150
8,426
(13,479)
237,097
94,668
3,984
98,652
138,445
147,482

The Instruments are revalued every five years on a rolling programme. The valuation is done by the trustees with professional assistance.

continued...

Page 27

NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 July 2020

11.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Debtors
12.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses
13.
ANALYSIS OF NET ASSETS BETWEEN FUNDS
Unrestricted
Restricted
fund
fund
£
£
Fixed assets
138,445
-
Current assets
312,838
46,615
Current liabilities
(33,235)
-
418,048
46,615
14.
MOVEMENT IN FUNDS
At 1.8.19
£
Unrestricted funds
General fund
420,897
Restricted funds
Other restricted funds
22,563
TOTAL FUNDS
443,460		 2020
£
26,923
2020
£
-
10,436
3,830
18,969
33,235
2020
Total
funds
£
138,445
359,453
(33,235)
464,663
Net
movement
in funds
£
(2,849)
24,052
21,203		 2019
£
61,593
2019
£
740
14,829
23,866
25,631
65,066
2019
Total
funds
£
147,482
361,044
(65,066)
443,460
At
31.7.20
£
418,048
46,615
464,663

continued...

Page 28

NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 July 2020

14. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Incoming
resources
£
Unrestricted funds
General fund
339,901
Restricted funds
Other restricted funds
658,792
TOTAL FUNDS
998,693
Comparatives for movement in funds
At 1.8.18
£
Unrestricted funds
General fund
374,924
Restricted funds
Other restricted funds
2,500
TOTAL FUNDS
377,424
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
343,438
Restricted funds
Other restricted funds
673,469
TOTAL FUNDS
1,016,907		 Resources
expended
£
(342,750)
(634,740)
(977,490)
Net
movement
in funds
£
45,973
20,063
66,036
Resources
expended
£
(297,465)
(653,406)
(950,871)		 Movement
in funds
£
(2,849)
24,052
21,203
At
31.7.19
£
420,897
22,563
443,460
Movement
in funds
£
45,973
20,063
66,036

continued...

Page 29

NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 July 2020

14. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Restricted funds
Other restricted funds
TOTAL FUNDS		 At 1.8.18
£
374,924
2,500
377,424		 Net
movement
in funds
£
43,124
44,115
87,239		 At
31.7.20
£
418,048
46,615
464,663

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 683,339 (640,215) 43,124
Restricted funds
Other restricted funds 1,332,261 (1,288,146) 44,115
TOTAL FUNDS 2,015,600 (1,928,361) 87,239

Restricted funds

During the year, the charity received donations and grants to be applied fo specific purposes as listed below:

Arts Council

Consists of annual funding from the Department for Education through Arts Council England to deliver our core roles - ensuring children from age 5-18 in the borough have to opportunity to sing, learn instruments, perform and have access to high-quality music experiences.

Jack Petchey awards Roma Bridging grant

Consists of monies for Roma Bridging Sounds Orchestra to fund additional rehearsals and repertoire creation required for high-profile performances for National Holocaust Memorial Day.

Mayors Fund for young musicians

Funds from London Music Fund (previously Mayor's Fund for Young Musicians) awards scholarships to music pupils to pay for lesson and ensemble fees.

JAM

Consists of funds received from National Foundation for Youth Music for a music project with Autism units in Newham schools.

continued...

Page 30

NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 July 2020

14. MOVEMENT IN FUNDS - continued

Jack Petchey awards

Donations from the Jack Petchey Foundation for awards for pupil achievement and leadership (for teachers). These awards are used for projects and reward programmes for Academy students.

UEL Community Opera

Consists of funds from University of East London towards the Community Opera - Full Circle project.

Cause 4 Ltd

Consists of funds to launch a training network for East London Arts Fundraisers.

Mercers Grant: is for Learning through music provided in schools - it enables young children (3-7) to develop through music across wider curriculum.

15. EMPLOYEE BENEFIT OBLIGATIONS

The charity contributes to two pension schemes. A defined benefit scheme operated by the Teachers' Pension Scheme, which is only available to teaching staff. The administration of the scheme is dealt with by the Teachers' Pension Agency. Contributions to this scheme are paid in respect of current service, and there is no liability to the charity in respect of past service.

In addition, there is a Personal Pension Scheme, which is a defined contribution pension scheme, administered by Peoples' Pension which is available to all employees.

The charge to the Statement of Financial Activities of £24,672 (2019: £28,141) represents contributions to the funds during the period.

At 31 July 2020, the charity owed £646.24 in respect of Teachers' Pension and £3,226 in respect of Peoples' Pension.

16. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 July 2020.

Page 31