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2022-08-31-accounts

DocuSign Envelope ID: A8987052-22C5-4616-A1D0-C3C713E4D433

THE MOZARTISTS

REPORT AND FINANCIAL STATEMENTS 31 AUGUST 2022

Charity Registration Number 1063387 Company Limited by Guarantee Number 3361716

DocuSign Envelope ID: A8987052-22C5-4616-A1D0-C3C713E4D433

THE MOZARTISTS

REPORT AND FINANCIAL STATEMENTS

31 AUGUST 2022

______________

CONTENTS

Page
Legal and administrative information 1
Report of the Trustees 2-9
Report of the Independent Examiner 11
Statement of Financial Activities 12
Balance Sheet 13
Statement of Cash Flows 14
Notes to the Financial Statements 15-27

DocuSign Envelope ID: A8987052-22C5-4616-A1D0-C3C713E4D433

THE MOZARTISTS

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees George Koukis CBE (Chairman)
David Challen CBE
Raphael Vermeir CBE
President Sir Vernon Ellis
Artistic Director Ian Page
Chief Executive Deborah Coates
Company Secretary Megan Chidlow
Name of Charity The Mozartists. The charity changed its name from Classical Opera on 2
October 2020.
Registered/Principal Office Boundary House
Boston Road
London
W7 2QE
Company Number 3361716
Charity Registration Number 1063387
Independent Examiner Oliver Warne ACA
Cottons Group
Chartered Accountants
Lower Ground Floor Office
229 Shoreditch High Street
London
E1 6PJ
Bankers HSBC Bank PLC
21 Kings Mall
King Street
Hammersmith
London
W6 0QF

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DocuSign Envelope ID: A8987052-22C5-4616-A1D0-C3C713E4D433

THE MOZARTISTS

REPORT OF THE TRUSTEES

The directors of the charitable company (“the charity”) are its Trustees for the purpose of charity law and throughout this report are collectively referred to as its Trustees. The Trustees present their report together with the financial statements for the year ended 31 August 2022. The financial statements comply with the Charities Act 2011, the Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Mozartists is a registered charity constituted as a company limited by guarantee, established in 1997 and governed by its Memorandum and Articles of Association. The charity has no share capital and in the event of liquidation or being wound up the liability of its Trustees is limited to £1.

The charity changed its name to The Mozartists from Classical Opera on 2 October 2020.

The Trustees meet regularly throughout the year with the Chief Executive, the Artistic Director and the members of the Senior Management Team. The Board of Trustees are committed to refreshing the Board when appropriate with new trustees who have the skills and networks needed to help the charity achieve its goals. The charity keeps a written policy outlining the requirement of trustees.

The day to day management of the charity is delegated to the Chief Executive, who is supported by a competent and experienced team which includes the Development and Communications Manager; Finance and Resources Manager.

The remuneration of the Chief Executive is approved by the Trustees. All Trustees give their time freely and no Trustee received remuneration during the year.

The charity owns a dormant subsidiary company limited by guarantee ‘Classical Opera’, which was acquired on 7 February 2017. The subsidiary was previously named ‘The Mozartists’ until 2 October 2020, when the names of the parent and subsidiary were effectively swapped. This subsidiary is dormant and is expected to remain so.

Details of any transactions with related parties during the reporting period are included in the notes to the financial statements.

OBJECTIVES AND ACTIVITIES

The charity’s principal objective is to advance the education of the public in the art of music with particular reference to opera and historically-informed performance.

The charity specialises in the music of Mozart and his contemporaries, and presents both operas and concert programmes in most of London’s leading concert venues – including Wigmore Hall, Southbank Centre and Cadogan Hall – as well as touring whenever possible.

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THE MOZARTISTS

REPORT OF THE TRUSTEES (continued)

OBJECTIVES AND ACTIVITIES (continued)

In 2015 the charity launched MOZART 250, an epic 27-year chronological project exploring Mozart’s life, work and influences in sequence 250 years on, starting with Mozart’s childhood visit to London and projected to end with his final Requiem in 2041. In addition, the charity regularly produces studio recordings of Mozart operas (as part of its projected Complete Mozart Opera Recording Cycle) and recital programmes – featuring soloists and the charity’s period-instrument orchestra – many of which have been nominated for prestigious awards.

The charity is acclaimed for its work in identifying and nurturing talented young artists – it has worked closely with many of the country’s finest opera singers since the beginning of their careers, and plays an important role in developing young talent through its Associate Artist Scheme and projects for young artists. The charity also delivers a valuable, expanding outreach programme to school children.

PUBLIC BENEFIT

The Trustees have referred to the Charity Commissioner’s general guidance on public benefit when reviewing their objectives and planning future activities, always with the aim of providing the utmost benefit to the public. In particular, the Trustees consider how such activities will contribute to the following key objectives:

Examples of steps taken include:

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THE MOZARTISTS

REPORT OF THE TRUSTEES (continued)

OVERVIEW OF THE 2021/22 SEASON – ACHIEVEMENTS AND PERFORMANCE

Overview

While funding remained impacted in comparison to pre-pandemic levels, we were able to return to a programme of live performances – including a tour to France where we made out Paris début – accompanied by a recording release and screenings of digital work created during the pandemic, and a significantly expanded outreach programme.

Live performances

In September 2021 we returned to Wigmore Hall for the first time since the pandemic, exploring works composed in the 1760s (‘The Swinging Sixties’); the soloists were company Associate Artists Alessandro Fisher and Jessica Cale.

We continued our MOZART 250 programming with three concerts at Cadogan Hall: ‘Mozart in 1771’ in November, with soloist Emily Pogorelc (who has since become an Associate Artist), ‘1772 – A Retrospective’ in January 2022 with Associate Artist Chiara Skerath, and ‘Haydn’s Farewell’ in March 2022, in a programme of Haydn symphonies showcasing our orchestra. These performances enabled us to share an enlightening range of often neglected repertoire that was being written and performed 250 years previously, including numbers from Paisiello’s Annibale in Torino , Hasse’s Il Ruggiero , Jommelli’s Cerere placata , Traetta’s Antigona, Gassman’s La Betulia liberata and J. C. Bach’s Endimione , alongside several works composed by Mozart including two of his little-known Epistle Sonatas. Work continued on preparing the new MOZART 250 area of our website, which will share brief biographies of the numerous composers that we have featured within the series, alongside comprehensive notes and audio and sometimes video excerpts of the works covered on this extraordinary musical journey.

In June we made our début at La Seine Musicale in Paris, as part of their international Mozart Maximum series, in a programme of music composed in London by Haydn and Mozart, with Associate Artist Chiara Skerath as soloist.

Free pre-performance talks were presented before each of our UK performances.

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THE MOZARTISTS

REPORT OF THE TRUSTEES (continued)

OVERVIEW OF THE 2020/21 SEASON – ACHIEVEMENTS AND PERFORMANCE (continued)

Recordings and streaming

Our funding situation, coupled with the continued risk of last-minute cancellation post-Covid, meant that we were unable to make any new recordings, but we released a recording of our concert performance of Hasse’s Il Vologeso on Signum Classics in September, having raised funds to pay the artists for this.

We also streamed the chamber music films that we made with the support of Continuo Foundation during the pandemic through streaming ‘events’ which incorporated live sessions for our UK supporters, as well as a taking part in a digital Early Music Festival, organised by the Réseau Européene de Musique Ancienne (European Early Music Network), in July.

Outreach

With support from one our key outreach partners, John Lyon’s Charity, and in collaboration with Ealing Music Service, we worked with over 1200 school children in Ealing in a significantly expanded programme of workshops across primary, secondary and special needs settings. The projects included our intensive MOZART 250 Discovery programme, through which primary school children learn about Mozart and the eighteenth century and compose and perform their own musical works, a series of ‘Introduction to Opera’ workshops in Secondary schools with singers who have worked with the company, as well as SEN and further primary school workshops with our singers, players, animateurs and composers. The feedback was overwhelmingly positive, and as a result Ealing Council commissioned an extended series of special needs workshops for ARP schools for the following academic year (2022-23).

PLANS FOR 2022/23

Planned performances include ‘Mozart’s Czech Mates’ at Wigmore Hall, with Associate Artist Chiara Skerath, rescheduled now that the pandemic is behind us, ‘Mozart in 1772’ (Cadogan Hall) and ‘1773 – A Retrospective’ (Wigmore Hall) continuing MOZART 250, and ‘Blackest Night – Ann Hallenberg sings Handel’ (also at Wigmore Hall). In July, we will make our début at the Schleswig-Holstein Festival in Germany with two performances exploring Mozart’s time in London.

We have also secured the majority of the funding for a new recording: Sturm und Drang, Volume 3, to be made in memory of one of our valued supporters. This will be released in 2023/24.

With support from Continuo Foundation, we will continue our chamber music filming projects with a programme of Mozart and Haydn string quartets, which will also be shared with a live audience.

Fundraising is underway to enable us to continue our mainstream outreach work.

.

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THE MOZARTISTS

REPORT OF THE TRUSTEES (continued)

FINANCIAL REVIEW

During the 2021/22 season the charity reported a surplus of £34,114 (2021: £50,411) and had total reserves at 31 August 2022 of £395,482 (2021: £361,370). This comprised free available reserves of £223,101 (2021: £216,152), designated funds of £95,999 (2021: £68,641) and restricted funds of £76,384 (2021: £76,577).

Total income for the year was £474,722 compared to £427,096 in the previous year. The increase being due to increased box office income, as ticket sales were able to resume on all events, and an increase in Orchestra Tax Relief following the increased rate of available relief during the year. While these increases are very beneficial, we have found that ticket sales have not returned to pre pandemic levels and the charity has had a significant ongoing reduction in voluntary income from regular donors, due to the long term economic impact of the pandemic.

Expenditure in the year was £440,608 (2021: £376,655). The charity was able to run its planned performances, as well as some of the planned educational projects in the year, despite some ongoing impact on these activities relating to the Covid-19 pandemic. Expenditure was further reduced wherever possible, in order to maintain funds to be able to keep activities going with reduced income in the longer term.

The cash balance of £299,521 (2021: £269,065) shows an increase of £30,456 in the reporting period, reflecting the impact on activities in the year.

RESERVES POLICY

The Trustees intend to apply all funds that they raise to the principal aims and activities of the charity. Reserves are calculated by the Trustees at a level sufficient to mitigate the risks facing the charity. During the year the charity has reviewed and amended its reserves policy. The Trustees judge that the charity should aim to hold sufficient funds to cover overhead costs for 3-4 months, along with the budgeted costs for imminent live performance and recording costs.

The income of the charity comes from a variety of sources; however it is not certain and more than 50% needs to be raised from voluntary sources each year to cover planned activity. In many cases, the charity has to plan activity before the necessary funding is secured. In contrast, some event costs, including venue hires, require commitment well in advance of the event and are non-refundable. Holding reserves sufficient to meet costs of imminent performances will give better flexibility to cover any temporary shortfall in incoming resources, and allow the charity to cope and respond in case of unforeseen adverse circumstances, buying the charity sufficient time to implement specific remedial plans.

At 31 August 2022 the minimum level of free reserves required under the reserves policy was calculated at £220,000. The charity held £223,101 of general reserves at the year-end date, slightly ahead of the amount needed under the reserves policy, however this amount is deemed acceptable to the Trustees given the economic risks currently faced. The charity additionally held £76,384 (2021: £76,576) of restricted funds, which are to be used in relation to specific planned performance and educational projects.

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THE MOZARTISTS

REPORT OF THE TRUSTEES (continued)

RESERVES POLICY (continued)

The Trustees have amended designated funds to those shown below. The reduction in designated funds reflects the increased general funds reserve level, which is judged necessary to protect for the longer-term stability of the charity. Designated funds at 31 August 2022 were £95,999 (2021: £68,641) and comprised:

The Trustees invest any surplus funds in highly liquid bank deposit accounts to maximise the income but with no risk to capital. Liquid funds required vary from month to month dependent upon the performance schedule .

RISK POLICY

The Trustees have identified the following principal risks facing the charity:

During 2020, closures caused by the Covid-19 pandemic impacted the venues we work with and events planned from April 2020 onwards were cancelled. These cancellations continued throughout 2020 and 2021, with our first live concert since the start of the pandemic finally taking place in July 2021. In addition we have seen the fall in voluntary income which began in the 19/20 year continue across the following years, as some of our major donors’ businesses were impacted by the pandemic. This ongoing reduction means that we have needed to review our operations and cost basis to ensure best use of funds available.

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THE MOZARTISTS

REPORT OF THE TRUSTEES (continued)

RISK POLICY (continued)

We responded to the challenges faced by reducing overheads – we moved offices, reduced headcounts and working hours, reduced our IT spend by switching to more cost-effective solutions, and found savings in other areas. Our ability to scale down and work flexibly means that the charity has been able to work through the prolonged pandemic period and is able to plan performances to take place after the restrictions on performances are removed.

As there is always a risk that performances might be cancelled through the pandemic, terrorist activity, royal demise or other reasons beyond our control, the management team build stringent policies into company contracts so that the impact of such cases is minimised. Event cancellation insurance is also taken out for certain events, but is not viable for all performances.

The management team are working closely with the main industry bodies to keep abreast of Brexit implications and shifts in policy. Increased paperwork is required where EU artists enter the UK, as well as if we wish to tour, but we are building in the time and financial resources to cover this, and we have also set aside a designated touring fund, which will help with these, and other touring-related costs.

Theatre and Orchestra Tax Relief is received the year after the corresponding performances have taken place, therefore if it were to be discontinued, while having a negative effect on revenue, the management team would have sufficient time to revise plans for the following year in order to decrease expenditure accordingly.

The eventuality of losing support from major donors would naturally impact the income available to the charity unless this income was replaced from other sources, but the risk is mitigated by stringent financial management which is closely monitored by the Board of Trustees. Reserves are maintained, and commitments forecast in such a way that events could be cancelled if necessary, and restructuring put in place.

Key controls used by the charity include formal agendas and minutes for all Trustee meetings, comprehensive planning, budgeting and accounting and clear authorisation and approval levels of all expenditure. Controls over operation of the charity’s bank account and periodic reviews of the adequacy of insurance are considered to be adequately managed.

Through the risk management processes established, the Trustees are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

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THE MOZARTISTS

REPORT OF THE TRUSTEES (continued)

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

Company law requires the Trustees (who are also directors of The Mozartists for the purposes of company Law) to prepare financial statements that give a true and fair view of the state of affairs of the charity at the end of the financial period and of its financial position at the end of that period. In preparing those financial statements the Trustees are required to:

The Trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006 and the Charities Act 2011. The Trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.

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THE MOZARTISTS

REPORT OF THE TRUSTEES (continued)

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS (continued)

In so far as the Trustees are aware:

By order of the Trustees: Approved by the Members on 15 May 2023 and signed on their behalf by:

…………………………………………………

Megan Chidlow

Company Secretary

Registered office

Boundary House Boston Road London W7 2QE

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THE MOZARTISTS

INDEPENDENT EXAMINER’S REPORT TO THE MEMBERS OF THE MOZARTISTS

I report to the charity Trustees on my examination of the accounts of the company for the year ended 31 August 2022.

Responsibilities and basis of report

As the charity’s Trustees of the 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 are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as 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 Examiner's statement

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:

  1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter 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 charities 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 connection with the examination to which attention should have been drawn in this report in order to enable a proper understanding of the accounts to be reached.

Oliver Warne ACA

Cottons Group Chartered Accountants Lower Ground Floor Office 229 Shoreditch High Street London E1 6PJ

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THE MOZARTISTS

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022

----- Start of picture text -----
2022 2022 2022 2021
Unrestricted Restricted
Funds Funds Total Total
Notes £ £ £ £
Income from:
Donations and grants 2 186,495 131,633 318,128 381,293
Charitable activities 3 74,802 - 74,802 22,765
Orchestra Tax Relief 80,841 - 80,841 22,585
Bank interest 951 - 951 453
Total income 343,089 131,633 474,722 427,096
Expenditure on:
Raising funds 4 45,611 - 45,611 69,435
Charitable activities 4 263,171 131,826 394,997 307,220
Total expenditure 5,6 308,782 131,826 440,608 376,655
Net (expenditure)/income being net movement 34,307 (193) 34,114 50,441
in funds
- - - -
Transfers in/(out) between funds
Net movement in funds 34,307 (193) 34,114 50,441
Reconciliation of funds
Total funds brought forward 284,793 76,577 361,370 310,929
Total funds carried forward 14,15 319,100 76,384 395,484 361,370
----- End of picture text -----

There are no recognised gains and losses other than those in the statement of financial activities. Therefore no statement of total recognised gains and losses has been prepared. All the above amounts relate to continuing activities.

The accompanying notes on pages 15 to 27 form an integral part of these financial statements.

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Company no: 3361716 Charity no: 1063387

THE MOZARTISTS BALANCE SHEET AS AT 31 AUGUST 2022

----- Start of picture text -----
2022 2021
Notes £ £
Fixed assets
Tangible assets 9 5,999 8,641
5,999 8,641
Current assets
Stock 10 4,721 4,859
Debtors 11 122,136 129,106
Cash at bank and in hand 299,521 269,065
426,378 403,030
Creditors 12 (36,893) (50,301)
Net current assets 389,485 352,729
Total net assets 395,484 361,370
Funds
Designated funds 14 95,999 68,641
General funds 223,101 216,152
Total unrestricted funds 319,100 284,793
Restricted funds 13 76,384 76,577
Total funds 15 395,484 361,370
----- End of picture text -----

For the year ending 31 August 2022 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies. No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilties for complying with the requirements of the Companies Act 2006 with respect to accounting records and preparation of accounts. The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.

The accounts were approved by the Board of Trustees on 15 May 2023 and signed on their behalf by:

Raphael Vermeir CBE

The accompanying notes on pages 15 to 27 form an integral part of these financial statements.

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THE MOZARTISTS CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2022

----- Start of picture text -----
2022 2021
£ £
Cash flows from operating activities:
Net income for the financial year 34,114 50,441
Adjustments to cash flows for:
Depreciation charges 2,642 3,366
Investment income (951) (453)
Decrease in debtors 6,970 40,213
Decrease/(increase) in stocks 138 (1,896)
(Decrease)/increase in creditors (13,408) 16,873
Net cash (used in)/generated from operating activities 29,505 108,544
Cash flows from investing activities
Interest from investments 951 453
Purchase of tangible fixed assets - (7,165)
Net cash provided by/(used in) investing activities 951 (6,712)
Net increase in cash and cash equivalents 30,456 101,832
Cash and cash equivalents at the beginning of the year 269,065 167,233
Cash equivalents at the end of the year 299,521 269,065
Cash and cash equivalents at the end of the year comprise:
Cash at bank and in hand 299,521 269,065
----- End of picture text -----

The accompanying notes on pages 15 to 27 form an integral part of these financial statements.

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THE MOZARTISTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1. ACCOUNTING POLICIES

a) Basis of preparation

The financial statements have been prepared in accordance with the Statement of Recommended Practice for charities (SORP 2015) (Second Edition, effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. In addition these financial statements have been prepared under the historical cost convention.

The Mozartists meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. The functional and presentational currency is pounds sterling and rounding is to the nearest pound.

b) Income

Income is recognised where there is entitlement, where the receipt of income is probable and the amount can be measured with sufficient reliability.

Grants and donations are recognised once entitlement and value have been confirmed in writing.

Charitable activities represent income received from live and recorded musical performances, including concerts and recordings. The income is recognised on the completion of the performance or, in the case of royalties, when receivable.

Investment income is included in the accounts when receivable, this is received in the form of interest income from standard bank accounts.

The value of services provided by volunteers is immaterial and has not been included in these financial statements.

c) Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is stated inclusive of irrecoverable VAT.

Expenditure comprises direct costs and support costs. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity, and support costs which are not attributable to a single activity, are apportioned between those activities on a basis consistent with the use of resources.

Expenditure on raising funds are costs incurred in seeking voluntary income, and those incurred in trading activities that raise funds, and associated salary and support costs.

Expenditure on charitable activities includes the costs of performances and educational activities undertaken to further the purposes of the charity, and associated salary and support costs.

Governance costs include costs which are directly attributable to the day to day running of the charity and procedures necessary for compliance with statutory requirements.

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THE MOZARTISTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1. ACCOUNTING POLICIES (CONTINUED)

c) Expenditure (continued)

Support costs represent indirect charitable expenditure in the form of premises costs, communication and information systems support and finance support which are necessary in order to carry out the primary purposes of the charity. Support costs are allocated using an apportionment in proportion to staff time.

d) Taxation

No liability to UK corporation tax arose on ordinary activities for the year ended 31 August 2022 as the company enjoys tax-exempt charitable status.

e) Pensions

The charity operates a defined contribution pension scheme for employees. These assets of the scheme are held separately from those of the charity. The annual contributions payable are charged to the statement of financial activities as they become due.

f) Estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on the Trustees’ best knowledge of the amount, events or actions, actual results ultimately differ from these estimates. The Trustees do not consider there to be any material estimates and judgements.

g) Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. All assets costing £500 or more and with an expected useful economic life exceeding one year are capitalised. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost of each asset, less any estimated residual value, evenly over its expected useful life. The expected useful lives of assets are:

10 years 4 years

h) Stocks

Stocks are valued at the lower of cost and net realisable value.

i) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Accrued income and tax recoverable is included at the best estimate of the amount receivable at the balance sheet date.

j) Cash at bank and in hand

Cash at bank and in hand includes cash and short term deposit accounts with 35 days notice or less.

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THE MOZARTISTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1. ACCOUNTING POLICIES (CONTINUED)

k) Creditors

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.

l) 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.

Trade and other debtors are recognised at the settlement value before any trade discounts due. Cash at bank and 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 are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts.

m) Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for specific purposes.

Designated funds are unrestricted funds which have been set up by the Trustees to hold funds for specific purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are those which have been given for particular purpose and projects within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.

n) Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

o) Going Concern and COVID-19

The trustees consider that there are no material uncertainties about the charitable company’s ability to continue as a going concern.

Following the World Health Organisation’s declaration of COVID-19 as an international pandemic in March 2020 and the subsequent restrictions imposed by the UK and the subsequent restrictions imposed by the UK government, The Mozartists has been affected in a number of ways, it has received emergency funding from the Arts Council and has made use of the Government Furlough Scheme.

The trustees believe that the forecasted results and adequate level of cash flow of the charity together with the measures taken to date will enable the charity to continue as a going concern and, as a result, do not include any adjustments that would result if the charity was not able to continue as a going concern.

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DocuSign Envelope ID: A8987052-22C5-4616-A1D0-C3C713E4D433

THE MOZARTISTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. INCOME FROM DONATIONS AND GRANTS

Current year
Individual and corporate donations
Trusts and foundations
Government grants - Cultural Recovery Fund
Prior year
Individual and corporate donations
Trusts and foundations
Government grants - furlough scheme
Government grants - Cultural Recovery Fund
Local public authorities		 Unrestricted
Restricted
2022
funds
funds
Total
£
£
£
117,241
79,033
196,274
23,500
52,600
76,100
45,754
-
45,754
186,495
131,633
318,128
Unrestricted
Restricted
2021
funds
funds
Total
£
£
£
123,106
61,856
184,962
2,500
36,050
38,550
7,575
-
7,575
145,206
-
145,206
5,000
-
5,000
283,387
97,906
381,293

The Mozartists are grateful for all support, and acknowledge particularly the following grants:

3. INCOME FROM CHARITABLE ACTIVITIES

Current year
Ticket sales and fee income
CD and streaming income		 Unrestricted
Restricted
2022
funds
funds
Total
£
£
£
64,448
-
64,448
10,354
-
10,354
74,802
-
74,802

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DocuSign Envelope ID: A8987052-22C5-4616-A1D0-C3C713E4D433

THE MOZARTISTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

----- Start of picture text -----
3. INCOME FROM CHARITABLE ACTIVITIES (continued) Unrestricted Restricted 2021
Prior year funds funds Total
£ £ £
Ticket sales and fee income 8,964 - 8,964
CD and streaming income 13,544 257 13,801
22,508 257 22,765
4. EXPENDITURE BY ACTIVITY TYPE
Staff costs Non staff Support 2022
Current year costs costs Total
£ £ £ £
Unrestricted funds:
Raising funds 29,388 9,001 7,222 45,611
Charitable activties:
Performance and recording costs 102,437 89,296 52,379 244,112
Education costs 15,506 - 3,553 19,059
117,943 89,296 55,932 263,171
Total unrestricted expenditure 147,331 98,297 63,154 308,782
Restricted funds:
Charitable activities:
-
Performance and recording costs 1,899 92,034 93,933
Education costs 8,972 28,921 - 37,893
-
Total restricted expenditure 10,871 120,955 131,826
Total expenditure 158,202 219,252 63,154 440,608
----- End of picture text -----

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DocuSign Envelope ID: A8987052-22C5-4616-A1D0-C3C713E4D433

THE MOZARTISTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

4. EXPENDITURE BY ACTIVITY TYPE (continued)

Prior year
Unrestricted funds:
Raising funds
Charitable activties:
Performance and recording costs
Education costs
Total unrestricted expenditure
Restricted funds:
Charitable activities:
Performance and recording costs
Education costs
Total restricted expenditure
Total expenditure
5. SUPPORT COSTS
Staff costs and related expenditure
Property and related costs
Office expenses
Legal and professional
Marketing and PR
IT costs
Governance costs		 Staff costs
Non staff
Support
2021
costs
costs
Total
£
£
£
£
49,111
4,794
15,530
69,435
107,661
62,360
42,936
212,957
5,456
-
2,149
7,605
113,117
62,360
45,085
220,562
162,228
67,154
60,615
289,997
510
79,744
-
80,254
1,205
5,199
-
6,404
1,715
84,943
-
86,658
163,943
152,097
60,615
376,655
2022
2021
£
£
6,291
13,902
18,800
18,317
7,027
5,319
2,628
1,412
17,127
6,631
8,628
12,784
2,653
2,250
63,154
60,615

Support costs (including governance) and staff costs are apportioned on the basis of staff time among the charitable activities and the cost of raising funds shown in note 4. Direct costs are allocated directly to activities where ever possible.

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DocuSign Envelope ID: A8987052-22C5-4616-A1D0-C3C713E4D433

THE MOZARTISTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

6. STAFF COSTS

----- Start of picture text -----
2022 2021
£ £
Wages and salaries 145,251 150,565
Employer's National Insurance 9,764 10,069
Employer's pension contributions 3,188 3,310
158,203 163,944
One employee received emoluments of more than £60,000 and less than £70,000 during 2022 (2021: Nil)
Average number of employees during the year 4.5 5.0
Average number of full time equivalent employees during the year 3.5 3.0
----- End of picture text -----

Key management personnel of the charity during the year comprised: the Chief Executive Officer, Finance and Resources Manager and Development and Communications Manager. The total remuneration of key management personnel (including employer’s National Insurance and pension contributions) received by the charity’s key management personnel in the year was £98,781 (2021: £134,139).

7. TRUSTEE EXPENSES

No Trustees received any remuneration or expenses from the charity in relation to the performance of their duties as trustees in either 2022 or 2021.

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DocuSign Envelope ID: A8987052-22C5-4616-A1D0-C3C713E4D433

THE MOZARTISTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

8. NET MOVEMENT IN FUNDS FOR THE YEAR

The net movement in funds for the year is stated after charging:
Depreciation of owned fixed assets
Operating lease payments - office rental
Independent Examiner's remuneration
Independent Examiner's fees for other services
9: TANGIBLE FIXED ASSETS		 2022
2021
£
£
2,642
3,366
13,200
13,200
2,000
2,000
400
400
2022
2021
Office, IT and musical equipment £
£
Cost
Brought forward
Additions
Disposals
Carried forward
Depreciation
Brought forward
Charge for the year
Depreciation relating to disposals
Carried forward
Net book value
As at 31 August 2022
As at 31 August 2021		 32,477
25,312
-
7,165
-
-
32,477
32,477
23,836
20,470
2,642
3,366
-
-
26,478
23,836
5,999
8,641
8,641
4,842

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DocuSign Envelope ID: A8987052-22C5-4616-A1D0-C3C713E4D433

THE MOZARTISTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

10: STOCK

Stock of CDs held for resale
11: DEBTORS
Trade debtors
Prepayments
Accrued income
Theatre and orchestra tax relief
Gift aid receivable
Other debtors
12: CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Accruals
Other taxation and social security
Deferred income
Other creditors		 2022
2021
£
£
4,721
4,859
2022
2021
£
£
2,201
2,718
9,517
21,854
5,912
20,461
96,947
78,578
5,212
1,365
2,347
4,130
122,136
129,106
2022
2021
£
£
10,632
13,308
19,143
29,668
1,468
3,537
1,920
2,115
3,730
1,673
36,893
50,301

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DocuSign Envelope ID: A8987052-22C5-4616-A1D0-C3C713E4D433

THE MOZARTISTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

13: RESTRICTED FUNDS

Current year
Performance and artist funds
Educational projects funds
Prior year
Performance and artist funds
Educational projects funds		 Balance at
Balance at
1 September
31 August
2021
Income
Expenditure
Transfers
2022
£
£
£
£
£
73,364
96,633
(93,933)
-
76,064
3,213
35,000
(37,893)
-
320
76,577
131,633
(131,826)
-
76,384
Balance at
Balance at
1 September
31 August
2020
Income
Expenditure
Transfers
2021
£
£
£
£
£
60,981
98,163
(80,254)
(5,526)
73,364
9,979
-
(6,404)
(362)
3,213
70,960
98,163
(86,658)
(5,888)
76,577

Purpose of restricted funds

Performance and artist funds Funding towards performances scheduled for future years. Educational projects funds Education project delivered in schools.

Transfers of funds in 2021 represent:

For performance funds - the purchase of a fixed assets with a donation for this purpose, where the assets purchased is intended to be used for the general purposes of the charity.

For education funds: allocation of restricted fund income to previous unrestricted expenditure on stock used for the project.

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DocuSign Envelope ID: A8987052-22C5-4616-A1D0-C3C713E4D433

THE MOZARTISTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

14: GENERAL AND DESIGNATED FUNDS

14: GENERAL AND DESIGNATED FUNDS
Current year
General funds:
Unrestricted funds
Designated funds:
Fixed assets fund
MOZART 250 project fund
Recording fund
Touring fund		 Balance at
Balance at
1 September
31 August
2021
Income
Expenditure
Transfers
2022
£
£
£
£
£
216,152
343,089
(306,140)
(30,000)
223,101
8,641
-
(2,642)
-
5,999
30,000
-
-
10,000
40,000
-
-
-
20,000
20,000
30,000
-
-
-
30,000
68,641
-
(2,642)
30,000
95,999
Prior year
General funds:
Unrestricted funds
Designated funds:
Fixed assets fund
MOZART 250 project fund
Touring fund		 284,793
343,089
(308,782)
-
319,100
Balance at
Balance at
1 September
31 August
2020
Income
Expenditure
Transfers
2021
£
£
£
£
£
185,127
328,933
(286,631)
(11,277)
216,152
4,842
-
(3,366)
7,165
8,641
30,000
-
-
-
30,000
20,000
-
-
10,000
30,000
54,842
-
(3,366)
17,165
68,641
239,969
328,933
(289,997)
5,888
284,793

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DocuSign Envelope ID: A8987052-22C5-4616-A1D0-C3C713E4D433

THE MOZARTISTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

15: ANALYSIS OF NET ASSETS BETWEEN FUNDS

Current year
Tangible fixed assets
Current assets
Creditors due within one year
Prior year
Tangible fixed assets
Current assets
Creditors due within one year		 Restricted
Total
Funds
Designated
funds
General
funds
Funds
2022
2022
2022
2022
£
£
£
-
-
5,999
5,999
76,384
95,999
253,995
426,378
-
-
(36,893)
(36,893)
76,384
95,999
223,101
395,484
Restricted
Total
Funds
Designated
funds
General
funds
Funds
2021
2021
2021
2021
£
£
£
-
-
8,641
8,641
76,577
68,641
257,812
403,030
-
-
(50,301)
(50,301)
76,577
68,641
216,152
361,370
Unrestricted
Unrestricted

16. PENSION COMMITMENTS

The charity operates a separate defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension costs charge represents contributions payable by the charity to the funds and amounted to £3,188 (2021: £3,310). Contributions totalling £378 (2021: £564) were payable to the fund at the balance sheet date and are included in creditors.

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DocuSign Envelope ID: A8987052-22C5-4616-A1D0-C3C713E4D433

THE MOZARTISTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

17. OTHER FINANCIAL COMMITMENTS

At the year end the charity had annual commitments under non-cancellable
operating leases as set out below:
Operating leases within one year		 2022
2021
£
£
2,200
5,500
2,200
5,500
Land and buildings

18. MEMBERS' LIABILITIES

The charitable company is limited by guarantee. Every member of the company undertakes to contribute to the assets of the company, in the event of the same being wound up while he or she is a member, or within one year after he or she ceases to be a member, for payment of the debts and liabilities of the company contracted before he ceases to be a member, and of the costs, charges and expenses of winding up such amount as may be required not exceeding £1. At the balance sheet date there were 3 members.

19. RELATED PARTY TRANSACTIONS

The total amount of donations received without conditions from Trustees and related parties during the reporting period was £27,919 (2021: £61,651).

There were no outstanding balances with related parties at the year end date (2021: £Nil).

In view of the charity’s legal status the charity Trustees consider that there is no ultimate controlling party to be disclosed under the provisions of Financial Reporting Standard No. 8.

20. IMPACT OF THE OUTBREAK OF COVID-19

The Trustees considered the impact of the outbreak of COVID-19 to be a non-adjusting post balance sheet event for the year ended 31 August 2021. The financial position at 31 August 2021 and the results for the year then ended were not adjusted. The impact of the COVID-19 pandemic on the finances of the charity are ongoing in terms of the effect on income, but the charity has adapted and results have not been adjusted by the end of the year to 31 August 2022. The Trustees will continue to consider the impact on the financial position and results of the charity for future accounting periods.

Page 27