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2020-12-31-accounts

THE PERFORMING RIGHT SOCIETY FOUNDATION (A company limited by guarantee and not having a share capital)

Trustees' Report and Financial Statements For the year ended 31 December 2020

Company number: 03901665 Charity number: 1080837

Contents

Page
Trustees' Report 1 - 18
Independent Auditor's Report 19 - 22
Legal and administrative information 23
Statement of Financial Activities 24
Balance Sheet 25
Statement of Cash Flows 26
Notes to the accounts 27 - 40

Trustees' Report For the year ended 31st December 2020

About PRS Foundation

PRS Foundation ("The Foundation") is the UK's leading charitable funder of new music and talent development across all genres. We invest in the future of music. We do this by enabling composers and songwriters of all backgrounds to make outstanding new music and reach audiences across the world. Since our establishment in 2000, we have awarded over £38m to over 7,800 new music initiatives, benefitting tens of thousands of UK songwriters and composers and hundreds of organisations dedicated to promoting new music.

We award grants which support the development of UK based songwriters and composers, the creation of outstanding, original music and its promotion to audiences across the UK. We also deliver, in partnership with like-minded partners, strategic programmes that respond to sector challenges which are not being addressed by other funders.

PRS Foundation is known as an indispensable contributor to the UK's music funding ecology. We are recognised by applicants for our user-friendly grant making systems and our team's expertise. Through our specialist networks and cost-effective systems, we enable partners to reach a broad range of music creators which otherwise would be beyond their reach. We are grateful for the input of our Ambassador network and independent Advisory Council which consists of over 600 music advisors, working in different music genres and UK regions. They give us expert advice and assistance and help us to realise our aim of reaching composers and songwriters of all backgrounds from every part of the UK.

OBJECTIVES AND ACTIVITIES

PRS Foundation’s charitable objectives are to support, sustain and further the creation and performance of new music in the UK and increase the public’s appreciation of and education in new music. Our 2020-23 Strategic Priorities were to:

Major activities which delivered on these objectives were:

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Trustees' Report For the year ended 31st December 2020

OBJECTIVES AND ACTIVITIES (continued)

Context

The Covid-19 pandemic had a huge impact on the music creators and organisations we serve and the above headlines only tell part of the story in a year which has been about adaptability, sustainability and collaboration.

Following 2019's record levels of demand (20% up on 2018) to 45 available funding deadlines, 2020 far exceeded that level, with 4,775 applications. This is an increase of 2.2% year on year but in the context of holding far fewer deadlines (due to the cancellation of some programmes and prioritisation of a streamlined pandemic response) represents a 43% increase in demand for our 32 available deadlines (149 applications per deadline in 2020 vs. 104 in 2019).

The reduction in the number of deadlines was in part due to ongoing efforts to streamline our programmes but mostly is a negative Covid-19 related result since some programmes - particularly those which focus on live performances such as Beyond Borders, Resonate and New Music Biennial - had to be postponed/deferred until such activity is allowed again. Income from sources other than PRS was impacted, though our resilience shone through thanks to increased support from the likes of PPL and Creative Europe and unexpected support from Spotify whose Covid-19 Music Relief Fund allowed us to launch the Sustaining Creativity Fund and support approximately 200 songwriters and composers.

These adaptations meant we supported fewer Organisations than in 2019 but a record number of Music Creators. Overall, we were able to support 11.4% of applicants, though our Open Fund for Music Creators experienced such high demand that we were only able to support 5.8% of applicants.

The pandemic and other world events also shone a light on inequities in music which, since we have a strong track-record for inclusivity, meant the Foundation was able to build on that reputation and launch initiatives to tackle inequity head-on.

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Trustees' Report For the year ended 31st December 2020

Context (continued)

THE IMPACT OF OUR WORK

For over 20 years, PRS Foundation investment has enabled songwriters and composers to develop and grow in ways which would not otherwise have been possible.

Our funding complements a changed investment landscape and reflects changing needs. Some music creators are likely to face bigger challenges than others and there is significant inequality between people of different socio-economic, ethnic and gender backgrounds. This is why PRS investment is important - it supports a diversity of outstanding music creators and opens up the music industry.

- Investment in PRS Members at different career stages the Talent Pipeline

2020 was a particularly rewarding year for grantees when it comes to Award nominations and Award wins which recognise the high quality of PRS Foundation-funded output.

Our open programmes and targeted schemes are designed to reach songwriters and composers at different career stages in order to support the talent pipeline:

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Trustees' Report For the year ended 31st December 2020

THE IMPACT OF OUR WORK (continued)

Early Career Support for New and Future PRS Members

We continue to invest in grassroots talent development through targeted schemes, partnerships (e.g. MOBO UnSung, Adopt a Music Creator and Girls I Rate), through our Open Fund and through organisations funding. Success stories from these awards include:

Tipping point/Next Level Music Creators

The PPL Momentum Music Fund continues to significantly impact the careers of music creators at crucial career tipping points, supporting artists across all 4 UK nations. To date, Momentum has supported over 400 grantees, 250 albums and 280 UK tours, generating over £18m for the UK music industry.

Our Hitmaker programme funds behind the scenes songwriters including Steph Marziano (produced and cowrote recent Hayley Williams solo material), The Fanatix (David Guetta/Nicki Minaj/Popcaan) and Jay Weathers (Mabel, now published by Universal). And The Composers' Fund continues to support 'next level' composers. Gavin Higgins, James Weeks, Charlotte Bray and Hilda Paredes won Ivors Composer Awards in 2019, 9 grantees were nominated for 2020's Awards, and Naomi Pinnock and Frank Deyner received RPS Awards.

We monitor closely our impact as a charitable foundation and regularly report on the development of our beneficiaries and the wider impact of our work.

DIVERSITY AND INCLUSION

Gender

We continue to meet gender balance targets across our programmes, though the pandemic meant new grantees were not selected for gender balance focussed programmes, including Keychange and ReBalance, which reduced the proportion of women, mixed gender groups and gender minority creators by 1.7%.

Ethnicity

As per Black Lives Matter related commitments made in June 2020, PRS Foundation, like many, committed to no longer using the label "BAME" which doesn't accurately reflect the experiences and racial barriers faced by different ethnic groups. Where we reported in 2019 that 45% of Music Creator grantees were "BAME", the majority were Black and our immediate response of a targeted Sustaining Creativity Fund for Black music creators further increased representation of Black talent which we expect to continue as we have launched our longer-term programme, Power Up.

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Trustees' Report For the year ended 31st December 2020

Ethnicity (continued)

In 2020:

Disability and Access

SIGNIFICANT OUTCOMES

PRS Foundation's grantees received many Award wins and nominations in 2019, and such critical acclaim was built on in 2020, recognizing the high quality of PRS Foundation-funded output.

Highlights

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Trustees' Report For the year ended 31st December 2020

Highlights (continued)

Other Music Creator Awards and Nominations

Other Tangible Outcomes

Common tangible outcomes for PRS members who receive our support include creation of new works, signing publishing and record deals, securing future commissions, recording and releasing hundreds of albums, EPs and singles each year, live bookings which allow for increased performance of members' work, significant income generation, audience growth, developing teams around music creators, attracting sync attention, and securing media coverage and DSP support.

A number of recently supported grantees have signed deals this year as a result of our support, including Danny Shah (Universal Music Publishing), Kitt Philippa (Faber Alt), James Vickery (Roc Nation Publishing), Jealous of the Birds (Atlantic Records), Emma Ruth Richards and Liz Johnson (Composers Edition), Jessica Agombar (Stellar Songs/Sony ATV), and TK The Producer (BMG).

In classical music, composers are sustaining and developing their careers, creating high quality, critically acclaimed work through our support for orchestra performances, recordings, commissions and artist development programmes. Successes include:

Chart and sales success for our grantees and continued positive reviews and recognition of releases in the media underline how our support is nurturing the creation of exceptional new music. Chart and sales highlights in 2020 include:

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Trustees' Report For the year ended 31st December 2020

Other Tangible Outcomes (continued)

The profile of many of our grantees has transcended strictly music outlets into mainstream culture:

Economic value

We continue to monitor economic impact of PRS Foundation support and know based on 2018 analysis that PRS Foundation grantees' annual PRS income since 2015 demonstrates that Songwriter and Composer members increase their PRS income by 284% within 2-3 years of receiving a grant. While the pandemic and resulting economic downturn has an impact on most grantees' ability to produce such strong results in the short-term, grantees are maintaining some common tangible outcomes, including:

Thanks to the quality of the music creators and organisations supported, every £1 invested by PRS generated an additional £3.10 (2019: £3.80) for the sector: £1,059,038 from fundraising undertaken by the Foundation (2019: 1,026,600), £5,785,266 (2019: £8,276,576) in match funding, cash and in-kind, levered through our leadership of partnership programmes and £1,680,000 (2018: £2,100,000) through funds grantees have been able to secure thanks to our seed-investment.

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Trustees' Report For the year ended 31st December 2020

Reach and A.V.E.

Our reach and Advertising Value Equivalency increased from £20,828,078 2019 to £27,467,368 in 2020 and continues to generate high levels of positive PR for PRS, demonstrating PRS' commitment, through the Foundation, to the development of PRS members and others in the ecosystem.

Our reach across social media platforms is continuing to grow, providing powerful ways for us to promote the achievements of PRS members we support and the impact the PRS donation is having on the industry.

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Trustees' Report For the year ended 31st December 2020

2020 Grantee Genre Splits

Although grantees working in Alternative/Indie, Rock and Pop genres make up the greatest proportion of grantees (31.6% when combined vs. 38% in 2019), there was a significant shift towards supporting those working in other genres. This included supporting a greater proportion of Music Creator and Organisation grantees working primarily in Black Music genres and Electronic genres (from 25% to 28.4%), and Jazz/Folk/Global/Blues grantees (from 17% to 19.6%). Over 20% of grants went to those working in Classical genres (for context, 14.7% of applicants work in these genres).

FUNDING FOR ORGANISATIONS

Our Organisations funding (project grants for venues, promoters, festivals, orchestras and non-profit talent development organisations) ensures that PRS Foundation supports organisations UK-wide to develop a more sustainable and extensive role, to leverage additional investment, and to be more effective in reaching and offering meaningful support to talent from all backgrounds.

For our organisation grantees, investment provides:

In terms of new music development and impact on music creators:

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Trustees' Report For the year ended 31st December 2020

FUNDING FOR ORGANISATIONS (continued)

For our organisation grantees, investment provides:

2020 Organisations Grantees - Regional Split

For Organisation grantees, we continue our broad reach across regions and genres. Only 34.5% of Organisation grantees in 2020 were based in London (vs. 42% in 2019). There was a significant increase in the proportion of Scotland based organisation grantees (from 8% to 13.3%), while we maintained strong representation in Wales (6.2%) and Northern Ireland (5.3%). Our 2020-23 Strategic Priorities include maintaining a strong regional and national split and it should be noted that 89% of London based organisations' delivery reaches music creators and audiences nationally or internationally.

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Trustees' Report For the year ended 31st December 2020

PUBLIC BENEFIT

We have referred to the Charity Commission’s general guidance on public benefit (including the guidance ‘public benefit: running a charity, PB2') when reviewing our aims and objectives and in setting our grant making policy for the year. Public benefit is implicit in the criteria we use to assess grants which focus on the extent to which the projects we support will benefit a broad range of music creators, result in high quality music and be enjoyed by a large and diverse audience.

The Foundation accepts funding applications from all kinds of music creators. Details of the Foundation’s activities are easily available on www.prsfoundation.com, including grant-making policies, priorities for each funding programme and application forms.

Our emphasis on transparency, and our staff’s ability to give expert advice to potential applicants, is a crucial part of the grant-making process. We also work in partnership with other organisations to extend our reach and impact, particularly in relation to any music genres and UK regions which are under-represented in our funding portfolio. Please see “Looking Ahead” (page 13) for details of our targets for 2021.

MONITORING, EVALUATION AND LEARNING

Our bespoke Flexi-Grant funding platform allows us to monitor current grants projects and we were able to implement more consistent Evaluations Reporting systems so that we are gathering the same information for all schemes to measure the impact of funding from an economic, cultural and social impacts perspective.

The team discusses results with Trustees and we are able to see that the vast majority of grantees meet intended outcomes and achieve additional unexpected positive outcomes.

We also commit to at least one long-term impact evaluation report per year, engaging the services of external evaluation experts each year. In 2020-21, this includes our deeper, long-term '20th Anniversary' impact evaluation which would have been launched in 2020 but due to the Covid-19 pandemic was pushed back, updated to include our response and how we adapt to meet the changing needs of PRS members, and will be published later in 2021.

Upcoming long-term impact evaluation reporting will include a '10 years of Women Make Music' report in 2022 and a deeper evaluation of the impacts of Classical-sector specific programmes.

We share learning and outcomes through our website, social media and regular mailings as well as via panel discussions at relevant industry conferences in the UK and overseas.

COVID-19 AND PRS FOUNDATION'S RESPONSE

The impacts of the pandemic present songwriters and composers with unprecedented challenges. Many fell into immediate financial hardship and the impact on music creators' work, income and ability to create and perform was clear for all to see. There has also been an impact on organisations, most notably venues, festivals, promoters and orchestras unable to deliver live performance activity as planned.

On a macro-level, the pandemic puts much of UK music's success at risk. Our support this year has been more vital than ever.

Guiding principles though the pandemic:

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Trustees' Report For the year ended 31st December 2020

Guiding principles though the pandemic: (continued)

i) to support the creation, performance and promotion of outstanding new music in any genre ii) to enable the UK's most talented music creators to realise their potential iii) to inspire audiences.

Our approach so far

Several grantees have been impacted. Liaising with funding partners, grantees and trade associations, we were the first arts funder to launch a simple, effective system in March to support and advise existing grantees and applicants, offering up-to-date guidance and launching an 'Exceptional Circumstances' system so grantees could liaise with our team and keep us updated on project progress.

We worked efficiently, flexibly and collaboratively to ensure many grantees were still in a position to meet funding objectives and to sustain music creator development. Where cancelled/postponed activities could be rescheduled, or acceptable alternative activities were proposed, grants could still be honoured. We have been sensibly cautious and the further into the pandemic we have been, the more we encourage applicants to avoid risky activity, prioritise creative development and to innovate.

Where activities have been cancelled and satisfactory alternative activities are not possible, we assess expenditure and music creator impacts and reclaim a fair portion of a grant without forcing the music creators into further debt or loss.

This process has resulted in several reclaims within 2020, and savings made allowed us to donate to the PRS Emergency Relief Fund ("ERF") and we project further savings from reclaims in 2021 relating to live performance cancellations. The ERF is an initiative between PRS and PRS Members Fund to provide financial support to PRS writer members experiencing extreme hardship as a result of the measures to tackle Covid-19.

Meeting changing music creator needs:

We will continue to adapt in 2021 and we know that we will play a vital role in stimulating recovery - building back better to create a strong, diverse and more connected music sector.

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Trustees' Report For the year ended 31st December 2020

LOOKING AHEAD

Priorities for 2021 include:

Long-term impact evaluation and 2021 launch

From late 2019 to mid-2020, we commissioned independent evaluators Tom Fleming Creative Consultancy to carry out a 360° impact report, taking a deep look at the economic impact of our funding, the creative and career impacts for songwriters and composers, the impact for PRS for Music and the impact for the wider sector and music industry.

Key findings and case studies were going to be presented at our 20th Anniversary event at Abbey Road Studios in the summer of 2020. We decided that the evaluation report should be updated to reflect our Covid19 and Black Lives Matter responses, our recovery role in 2021. As such a revised report will be launched in 2021 as PRS Foundation celebrates 21 years of support from PRS.

As per the new Strategic Priorities for 2020-23 (outlined above), some of PRS Foundation's longer-term objectives include:

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Trustees' Report For the year ended 31st December 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure

PRS Foundation was established as a charity and company limited by guarantee in 2000. The organisation is governed by the Board of Trustees which comprises individuals who are both trustees of the charity and nonexecutive directors of the company. The Members of the PRS Foundation are the directors and the Performing Right Society Limited.

The Foundation’s partnerships with other public funders, charities and private sector companies are central to the way we work. These partnerships enable us to share or pool resources, grow our impact and initiate pioneering programmes which support sector development.

Governance

The Foundation monitors the terms of office of all trustees, and carries out skills audits on a regular basis. Trustees serve for three-year terms and are eligible to be re-elected for a maximum of three terms. As of July 2015, the Members amended the Articles so that if a trustee is retiring after a period of continuous service exceeding nine years, the trustees may allow the retiring trustee to be re-elected for a maximum continuous period of twelve months, in order to help with induction and mentoring of successor trustee. At the end of the reappointed period the retiring trustee shall not be eligible for re-election.

In 2020 the Foundation made amendments to the Memorandum of Association, updating the wording better to reflect the charitable objectives. An additional clause was added to enable the Foundation to donate to PRS's Emergency Relief Fund which supports PRS's songwriter and composer members' hardship needs as a result of Covid-19.

The Foundation has provision for not more than fifteen trustees of whom up to seven Trustees (or no more than half of the total number of trustees if fewer than fifteen) shall be nominated by the Board of the Performing Right Society Limited. Other trustees shall be independent individuals with relevant experience relating to the role of the Foundation. Chris Butler, Michelle Escoffery, Richard King, and Mark Poole are PRSnominated Trustees.

Our new Chair of the Board, Nitin Sawhney began his tenure in 2020 and with some current Trustees coming to the end of their 9 year maximum tenure in 2021, a sub-committee Chaired by Nitin Sawhney has been formed to act upon a recent Skills Audit so that we can recruit 3 replacement Trustees.

Grant-making process

Final decisions regarding grant-making resourced by unrestricted funds are made by the trustees, following recommendations and advice from the management team which is informed by the Advisory Council. The Foundation pays advisors a fee for specific services, which are set out in a letter or email confirming these services when required. As part of the grant-making process, Link Trustees take an active part in the Foundation's grant-making procedures. At Board meetings, the Link Trustee is asked by the Chair to present an overview of the Advisory Panel’s discussions to the Board, highlighting strategic priorities addressed by the grant recommendations and confirming that due process was followed.

Trustees are required to ratify (rather than approve) grants made through partnership-funded schemes such as Momentum Music Fund, International Showcase Fund and Beyond Borders. These funding decisions are recommended by specialist programme advisors and/or funding partners.

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Trustees' Report For the year ended 31st December 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Management

Day-to-day management is the responsibility of an administrative team of nine full time and four part time staff, led by Chief Executive Joe Frankland, who has authority, within terms of delegation approved by the directors, for all operational matters.

The team was expanded in early 2021 when we appointed Yaw Owusu to the recently created Senior Management position of Senior Power Up Programme Manager.

RISK MANAGEMENT

The trustees identify potential risks by carrying out regular detailed reviews of the activities and an annual risk assessment which is approved by the Board via the Finance and Personnel Committee meetings and as part of the business planning process.

The following specific measures are in place to mitigate against potential risks:

COVID-19 RESPONSE

In the period from March 2020 to the date of approval of this report, we have been proactively supporting grantees and applicants whose projects are impacted by the COVID-19 pandemic. Music creators and organisations we work with can access an up-to-date Guidance and FAQ page, a simple-to-use Exceptional Circumstances Form in order to outline project impact and changes, and the Grants Team are able to respond and support those submitting within 14 days, sharing information when relevant with partners, Senior Management and the Board. We benchmarked our approach against policies published by Arts Councils and other Trusts and Foundations.

Using remote decision panels, the Grants Team have been able to mitigate against significant delays to deadlines or decision-making dates. The level of risk associated with project plans submitted before the pandemic is factored into advisor scoring and panel discussion, and grant recommendations are shared with the CEO, Board and Partners with the risk assessment.

The pandemic also resulted in the new PRS Emergency Relief Fund, and support from Spotify which enabled PRS Foundation to set up the new Sustaining Creativity Fund which so far has raised over £135,000 in donations and has supported almost 150 grantees across 2 deadlines.

We continue to monitor Covid-19’s impact on other programmes so that we can adjust models to meet the needs of creators at all career levels, across the UK and working in all genres.

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Trustees' Report For the year ended 31st December 2020

COVID-19 RESPONSE (continued)

Aside from the impact on grantees and on music creator development, the biggest impact so far has been on fundraising projections.

With UK-based Arts Councils prioritising emergency sector relief, in some cases public funding contributions to programmes such as New Music Biennial, International Showcase Fund and the PPL Momentum Music Fund has been impacted. Each programme is able to adjust, and we seek to secure re-commitment at later dates from Arts Councils while exploring new fundraising opportunities. In some cases, there will be fewer grantees, but a priority is ensuring each programme continues and continues to support exciting talent across the UK.

Sponsorship is more at risk as commercial company sponsorship budgets are reduced. In some cases, new opportunities are presented but within scenario planning for programmes such as Keychange (2019-2024), we decreased sponsorship expectations for 2020 and increased targets for future years.

Covid-19 may also present PRS Foundation with fundraising challenges relating to future commitments from our main donor, PRS. The society expects the most significant impact will be on its public performance business and the royalties it collects internationally, but at this stage the exact financial impact, and how this will affect individual members, is extremely difficult to fully predict. PRS is closely monitoring the situation from every angle possible and taking proactive steps to safeguard royalties and mitigate risk throughout this period of significant disruption. While the level of donation is secure for 2020 and 2021, Trustees are working with management to ensure pre-existing Strategic Priorities of stabilising investment from PRS are not affected by Covid-19. Our 20th Anniversary plans are on hold until 2021 but our Impact Evaluation reporting is still on target and we spent 2020 proving the impact and value of our work - PRS Foundation will play an increasingly vital role in the coming years to help exciting and diverse PRS members to sustain careers and recovery better.

Demand for creative and career development has increased despite Covid-19 related project uncertainty, with as many applications from music creators in the 12 weeks since lockdown began than we would normally receive in 6 months. Risks around supporting a smaller proportion of applicants are more relevant during the pandemic. While unavoidable in the short-term, it is important our long-term fundraising targets remain ambitiously high in order to meet demand and needs.

Our budget reforecasting in 2020 realistically reflects the fundraising situation but Trustees are satisfied we can mitigate against risks, and Trustees have confirmed there is significant unrestricted funding in place for the coming years.

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Trustees' Report For the year ended 31st December 2020

FINANCIAL REVIEW

Income

Total income for the year 2020 was £3,911,558 compared with £4,121,756 in 2019.

The Foundation is extremely grateful for the generosity and support from all of the funders listed in this report. This includes the membership and Board of PRS which has shown their continued commitment to the Foundation’s charitable activities and the importance of our work to songwriters, composers, performance groups, bands, festivals, promoters and other organisations making new music across the UK. We also acknowledge the generous support of our other major donor, PPL which is supporting our Momentum Music Fund and International Showcase Fund.

Expenditure

Total expenditure in the year was £3,881,629 compared with £4,306,282 in 2019. Expenditure incurred to generate income is minimal (2.1% of funds raised) as the fundraising function is integrated with the Chief Executive’s responsibility to work strategically with a broad range of funding partners who share our objectives. PRS Foundation does not engage external professional fundraisers or commercial participators to carry out fundraising activity and does not engage in face-to-face or telephone fundraising.

As part of its preparation for the General Data Protection Regulation that came into force in May 2018, PRS Foundation has reviewed and updated its Privacy Notices. These notices, published on our website, clearly states what personal data the Foundation holds in relation to supporters and how this data will be used. It sets out how individuals can raise concerns or complaints. The Foundation has received no complaints about its fundraising activities either during the financial year or subsequently.

RESERVES

The total year end funds are £1,092,881 compared to £1,062,952 in 2019. This amount is split between £105,261 of unrestricted funds and £987,620 of restricted funds. The net of movement in funds for 2020 is a surplus of £29,929 (2019: deficit of £184,527), which is due to the timing of income recognition and grants expenditure between years.

The Foundation also has confirmed funding partnerships that have been deferred until 2021. The trustees intend that our free reserves i.e. the unrestricted reserves of the Foundation, excluding those designated or tied up in fixed assets, will cover the operating costs of the charity for the first quarter of the following year. The trustees believe that the Foundation should aim to award the majority of its funds to grantees and not to build up large reserves. The free reserves at 31 December 2020 stand at £103,562. For these purposes, the charity’s operating costs cover salaries and support costs, but not grant payments and are estimated at approximately £101,697 for the first quarter of 2021. The reason for holding reserves is as a buffer in case of adverse events and/or loss of income.

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Trustees' Report For the year ended 31st December 2020

TRUSTEES' RESPONSIBILITIES

The trustees (who are also directors of The Performing Right Society Foundation for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.)

Company law requires trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

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 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, Moore Kingston Smith LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

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

On behalf of the Board

Nitin Sawhney (Chair) Trustee

Date:

17th June 2021

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Independent Auditor's Report To the members of The Performing Right Society Foundation

Opinion

We have audited the financial statements of The Performing Right Society Foundation ('the company') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Summary Income and Expenditure account, the Balance Sheet, the Cash Flow Statement and the 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, including FRS 102 'The Financial Reporting Standard Applicable in the UK and Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

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Independent Auditor's Report For the year ended 31st December 2020

Other information (continued)

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 matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 18, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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Independent Auditor's Report For the year ended 31st December 2020

Auditor’s responsibilities for the audit of the financial statements

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

Based on this understanding, we designed specific appropriate audit procedures to identify instances of noncompliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Page 21

Independent Auditor's Report For the year ended 31st December 2020

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

…………………………………………………………. James Saunders, FCCA DChA (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD

Date: 5 July 2021

Page 22

Legal and administrative information For the year ended 31st December 2020

Name and status: The Performing Right Society Foundation ("PRS Foundation") is a
company limited by guarantee, being governed by its memorandum
and articles of association and has no share capital.
Company number: 03901665
Charity number: 1080837
Principal and registered office: 2 Pancras Square
London
N1C 4AG
Trustees: Chris Butler
Lorna Clarke
Michelle Escoffery
Christine Geissmar
Hannah Kendall - resigned 3 March 2021
Richard King
Caroline Norbury
Simon Platz (Chair) - resigned 29 April 2020
Mark Poole
John Reid
Nitin Sawhney (Chair) – appointed 29 April 2020
Ameet Shah
Susannah Simons
Vanessa Swann - resigned 13 October 2020
Principal staff: Joe Frankland, Chief Executive
Fiona Harvey, Senior Manager, Operations
Becci Scotcher, Senior Grants and Programmes Manager
Liam McMahon, Senior Communications Manager
Yaw Owusu, Senior Power Up Programme Manager
Secretary: Fiona Harvey
Auditors: Moore Kingston Smith LLP
Devonshire House
60 Goswell Road
London
EC1M 7AD
Bankers: Santander UK plc
Bridle Road
Bootle
L30 4GB

Page 23

Statement of Financial Activities (Incorporating the Summary Income and Expenditure account) For the year ended 31st December 2020

Unrestricted Restricted Total Total
Note Funds Funds 2020 2019
£ £ £ £
INCOME:
Income and endowments from:
Donations and legacies 3 2,847,398 905,943 3,753,341 4,014,778
Corporate sponsorship - 153,095 153,095 88,000
Investments 5,122 - 5,122 18,978
Total income 2,852,520 1,059,038 3,911,558 4,121,756
EXPENDITURE:
Raising funds 5 (14,926) (68,949) (83,875) (92,973)
Charitable activities 6 (1,114,486) (2,683,268) (3,797,754) (4,213,310)
Total expenditure (1,129,412) (2,752,217) (3,881,629) (4,306,283)
Net income / (expenditure) 1,723,108 (1,693,179) 29,929 (184,527)
Transfers between funds 17 (1,728,470) 1,728,470 - -
Net movement in funds (5,362) 35,291 29,929 (184,527)
Reconciliation of funds
Total Funds Brought Forward 110,623 952,329 1,062,952 1,247,479
Total Funds Carried Forward 105,261 987,620 1,092,881 1,062,952

The notes on pages 27 to 40 form an integral part of these accounts.

Page 24

Balance Sheet As at 31st December 2020

Notes 2020 2020 2019 2019
£ £ £ £
Fixed Assets
Tangible fixed assets 12 1,699 - 2,604 -
Current Assets
Debtors 13 447,461 796,643
Cash at bank and in hand 3,821,710 2,598,773
4,269,171 3,395,416
Creditors: Amounts falling due
within one year 14 (3,177,989) (2,335,068)
Net Current Assets 1,091,182 1,060,348
Total Net Assets 1,092,881 1,062,952
The funds of the charity 17
Unrestricted funds 105,261 110,623
Restricted funds 987,620 952,329
Total charity funds 1,092,881 1,062,952

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

The notes on pages 27 to 40 form an integral part of these accounts.

17th June 2021

Approved by the Board of Trustees, authorised for distribution, on …………………………………………. and signed on their behalf by:

......................................................

Nitin Sawhney, Trustee, Chair

Company Registration Number: 03901665

Page 25

Statement of Cash Flows For the year ended 31st December 2020

2020 2019
Note £ £
Net cash used in operating activities 18 1,217,815 (39,640)
Cash flows from investing activities:
Dividends, interest and rent from investments 5,122 18,978
Purchase of tangible fixed assets - (2,717)
Net cash provided by investing activities 5,122 16,261
Change in cash and cash equivalents in the reporting period 1,222,937 - (23,379)
Cash and cash equivalents at the beginning of the reporting period 2,598,773 2,622,152
Cash and cash equivalents at the end of the reporting period 3,821,710 - 2,598,773

Page 26

Notes to the accounts For the year ended 31st December 2020

1 Accounting Policies

Statement of compliance

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity's governing document, the Charities Act 2011 and 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 (The Charities SORP (FRS102)) published on 16 July 2014.

Basis of Preparation of the Financial Statements

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted, which have been consistently applied to all the years presented, are set out below.

Going Concern

The financial statements are prepared on a going concern basis which assumes that the charitable company will continue in operational existence for a period of at least twelve months from the date of approval of these financial statements.

We have been scenario planning for most programmes and trustees have reviewed reforecast budgets for 2021 which include assessments of the probability of reaching fundraising targets, using percentage indicators, particularly in the context of the impact of the COVID-19 pandemic on the charitable company's priorities.

Trustees are assured that unrestricted income is confirmed from PRS in 2021 (£2,500,000) and 2022 (£2,500,000) and that expenditure on programmes is not begun until funds have been confirmed.

Senior management is in constant communication with funders and funding partners with regard to future funding which has helped our scenario planning. The Foundation is very experienced at adapting to changing needs and trustees accept that expenditure on programmes needs to be adjusted where necessary. The trustees will work with management to look for new fundraising opportunities.

The trustees believe that the charitable company is well placed to manage its business risks and has considerable financial resources including cash balances. It is therefore appropriate to prepare these accounts on the going concern basis.

Income

(ii) Donated services and facilities

Where services are provided to the Foundation as a donation that would normally be purchased from suppliers, this contribution is included in the financial statements as an estimate based on the value of the contribution to the Foundation. Donated services and facilities are discussed in Note 19.

(iii) Investment income

Investment income is recognised on a receivable basis.

Page 27

Notes to the accounts For the year ended 31st December 2020

1 Accounting Policies (continued)

Expenditure

Expenditure, which is charged in the Statement of Financial Activities on an accrual basis, has been classified under headings that aggregate all costs related to the type of activity. Where costs cannot be directly attributed to a particular activity (i.e. support costs) they have been allocated to them on a basis consistent with use of the resources. Support costs have been allocated on the basis of staff time spent on the various activities as this is felt to be a measure of the relative proportion of resources consumed.

Grant obligations are recognised on an accruals basis once the grant offer has been communicated to the recipient.

Tangible Fixed Assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is provided on all tangible fixed assets, acquired at a cost of more than £1,000, at rates calculated to write off the cost or valuation, less estimated residual value based on prices prevailing at the date of acquisition or revaluation, of each asset evenly over its expected useful life, as follows:

Computer equipment 3 years

The useful economic lives and residual values of all tangible assets are re-assessed anually. Impairment reviews are also carried out annually.

Value Added Tax

The charity is registered for value added tax.

Pensions

Contributions to personal pension schemes are charged to the Statement of Financial Activities as they become payable in accordance with the individual schemes.

Taxation

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

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Page 28

Notes to the accounts For the year ended 31st December 2020

1 Accounting Policies (continued)

Recognition basis

Basic financial assets are initially measured at transition price and subsequently carried at amortised cost. Basic financial liabilities are initially recognised at transition price and subsequently measured at amortised cost.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received, where this is material to the accounts.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2 Judgements and key sources of estimation uncertainty

In the application of the charitable company's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

In the opinion of the trustees there are no sources of estimation uncertainty as at the reporting date that have a significant risk of causing a material adjustment to the carrying value of assets and liabilities in the next reporting period.

3 Voluntary income

Unrestricted Restricted 2020
£ £ £
Donations 2020
Performing Right Society Limited 2,847,371 20,150 2,867,521
Public funding - 127,360 - 127,360 127,360
Trusts and Foundations - 75,656 - 75,656 75,656
Other 27 682,777 682,804
2,847,398 905,943 3,753,341

'Public funding' comprises donations from Arts Council Ireland, Arts Council Northern Ireland, British Underground, Creative Scotland, Creative Wales, Wales Arts International, and Department for International Trade.

Page 29

Notes to the accounts For the year ended 31st December 2020

3 Voluntary income (continued)

Unrestricted Restricted 2019
£ £ £
Donations 2019
Performing Right Society Limited 3,063,638 - 3,063,638
Public funding - 453,673 453,673
Trusts and Foundations 4,762 5,000 9,762
Other 7,778 479,927 487,705
3,076,178 938,600 4,014,778

'Public funding' comprises donations from Arts Council Ireland, Arts Council Northern Ireland, British Underground, Creative Scotland, Department for International Trade, and the Welsh Government.

4 Government grants

During the year income of £16,500 (2019: £85,000) was received from Department for International Trade, relating to the International Showcase Fund.

No unfulfilled conditions or contingencies attached to the grant have been recognised as income.

5 Cost of generating funds

Cost of generating funds
2020 2019
£ £
Staff costs 56,907 70,255
Direct costs 25,499 15,793
Support costs (see note 8) 407 5,947
Consultancy costs 1,062 978
83,875 92,973

Page 30

Notes to the accounts For the year ended 31st December 2020

6 Charitable activities costs

Direct Support
activities Grants costs Total
(See note 7) (See note 8) 2020
£ £ £ £
Project / activity 2020
Talent Development 232,467 2,007,325 55,236 2,295,028
Open Funds 106,884 920,099 39,050 1,066,033
International 169,855 51,149 26,421 247,425
UK Collaboration 13,584 - 5,109 18,693
Other Partnerships 35,852 125,000 9,723 170,575
558,642 3,103,573 135,539 3,797,754

Within the above, 'direct activities' is comprised of expenditure on grants awarded and the direct costs of supporting charitable activities. This includes an allocation of staff costs on the basis of staff time spent on the various activities as this is felt to be a measure of the relative proportion of resources consumed.

Support costs, which cannot be directly attributed to a particular activity, have been allocated on the same basis.

Included within the above are grants to 180 institutions (2019: 275 institutions), which include bands, orchestras, festivals and promoters totalling £1,963,987 (2019: £2,310,121).

Included within the above are grants to 367 individuals (2019: 226 individuals) totalling £1,139,586 (2019: £972,679).

Further details about these programmes can be found at www.prsfoundation.com

Direct Support
activities Grants costs Total
(See note 7) (See note 8) 2019
£ £ £ £
Project / activity 2019
Talent Development 234,460 1,668,925 45,667 1,949,052
Open Funds 98,900 1,030,982 33,336 1,163,218
International 304,390 476,796 29,899 811,085
UK Collaboration 110,158 81,097 5,665 196,920
Other Partnerships 57,361 25,000 10,674 93,035
805,269 3,282,800 125,241 4,213,310

Page 31

Notes to the accounts For the year ended 31st December 2020

7 Grants awarded

----- Start of picture text -----
|||| |---|---|---| |2020|2019| |£|£| |Commitments brought forward|2,273,237|2,125,906| |Grants pledged in year|3,108,573|3,285,300| |Grant commitments reclaimed|(5,000)|(2,500)| |Grant payments made|(2,959,309)|(3,135,469)| |Commitments carried forward (note 14)|2,417,501|2,273,237|

----- End of picture text -----

8 Support costs

----- Start of picture text -----
|||| |---|---|---| |2020|2019| |£|£| |Fundraising and activities to generate funds|407|5,947| |Charitable activities|135,539|125,241| |135,946|131,188| |Support costs, included in the above, are detailed below| |Accommodation|100,560|74,637| |Governance costs|13,839|16,139| |Staff training|7,839|4,974| |Staff costs|4,151|5,180| |Consultancy|1,062|978| |Personnel services|642|5,607| |Travel and subsistence|379|5,673| |-| |Legal services|2,995| |Other office running costs|7,474|15,005| |135,946|131,188| |Net movement in funds| |2020|2019| |£|£| |Net resources are stated after charging:| |Depreciation- owned assets|905|113| |Auditors' remuneration- current year|9,010|11,100| |-| |External auditors' other services|4,605|

----- End of picture text -----

9 Net movement in funds

Page 32

Notes to the accounts For the year ended 31st December 2020

10 Trustees' remuneration and benefits

The trustees did not receive any remuneration as statutory directors of the company.

During the year no trustees were reimbursed expenses for travel and subsistence.

11 Staff costs

2020 2019
£ £
Salaries 348,908 341,073
Social security costs 29,442 30,570
Pension costs 19,517 18,084
Settlement payment - 14,672
397,867 404,399

Included in the above costs are £66,865 of salaries (2019: £47,526) and £4,033 of social security costs (2019: £3,554) that are funded by restricted income.

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

2020 2019
Fundraising and activities to generate funds 0.7 0.7
Charitable activities 8.4 8.5
Governance 0.1 0.1
Total 9.2 9.3

One employee received emoluments, excluding pension contributions, of between £60,000-£70,000 (2019: no employees).

Employer pension contributions for this employee totalled £4,017 (2019: £0).

In addition to remuneration, including pension contributions, for three key management personnel of £177,866 (2019: £173,386), there is one additional member of key management personnel who was paid £21,222 (2019: £19,537) on a consultancy basis.

Page 33

Notes to the accounts For the year ended 31st December 2020

**12 ** Tangible fixed assets
Computer
equipment
£
Cost
At 1st January 2020 2,717
Additions -
Disposals -
At 31st December 2020 2,717
Depreciation
At 1st January 2020 113
Charge for year 905
Eliminated on disposal -
At 31st December 2020 1,018
Net book value
At 31st December 2020 1,699
At 31st December 2019 2,604
13 Debtors
2020 2019
£ £
Prepayments and accrued income 446,458 764,550
Other debtors 1,003 32,093
447,461 796,643

Page 34

Notes to the accounts For the year ended 31st December 2020

14 Creditors: Amounts falling due within one year

2020 2019
£ £
Taxation and Social Security 5,754 8,921
VAT 41,000 -
Grants payable 2,417,501 2,273,237
Accruals 70,208 50,410
Deferred income 643,526 2,500
3,177,989 2,335,068
Deferred income
At 1st January 2020 2,500
Income deferred 643,526
Income released to Statement (2,500)
At 31st December 2020 643,526

15 Analysis of net assets between funds

Unrestricted Restricted Total funds
funds funds
2020 £ 2020 £ 2020 £
Fixed assets 1,699 1,699
Current assets 1,580,956 2,688,215 4,269,171
Current liabilities (1,477,394) (1,700,595) (3,177,989)
105,261 987,620 1,092,881
Unrestricted Restricted Total funds
funds funds
2019 £ 2019 £ 2019 £
Fixed assets 2,604 - 2,604
Current assets 1,752,245 1,643,171 3,395,416
Current liabilities (1,644,226) (690,842) (2,335,068)
110,623 952,329 1,062,952

16 Operating lease commitments

The following operating lease payments are committed to be paid in total as at 31 December 2020:

2020 2019
£ £
Total payable:
Less than 1 year 14,656 37,600
Between 2-5 years - 131,858
14,656 169,458

Page 35

For the year ended 31st December 2020

Notes to the accounts

17 Movement in funds
At 1 January Incoming Resources Transfers Transfers
At 31
2020 £ resources expended £ December
£ £ 2020 £
Unrestricted funds 2020
General 110,623 2,852,520 (1,129,412) (1,728,470) 105,261
Restricted funds 2020
(a) BBC Introducing 48,805 - (6,015) 38,863 81,653
(b) Beyond Borders 44,252 - (5,891) 5,891 44,252
(c) The Composers' Fund 167,399 20,000 (169,651) 109,163 126,911
(d) Glastonbury Festival - 5,000 (10,000) 5,000 -
(e) The Hitmaker Fund 43,846 - (153,270) 118,219 8,795
(f) International Showcase Fund 47,720 188,050 (158,085) 143,869 221,554
(g) Keychange 46,881 51,253 (91,940) 67,343 73,537
(h) Lynsey de Paul Prize 5,504 - - (5,504) -
(i) National Film and TV School - 5,000 (11,053) 6,053 -
(j) New Music Biennial - - (18,719) 18,719 -
(k) Power Up - 15,000 (28,673) 16,683 3,010
(l) PPL Momentum Accelarator - 9,137 (19,571) 10,434 -
(m) PPL Momentum Music Fund 425,198 555,750 (739,413) 120,853 362,388
(n) ReBalance 9,222 - (6,471) 10,057 12,808
(o) Resonate 115,802 - (74,274) 9,274 50,802
(p) Steve Reid InNOVAtion Award (2,300) - (1,263) 3,563 -
(q) Sustaining Creativity Fund - 143,181 (179,504) 38,233 1,910
(r) Women Make Music - 16,667 (228,377) 211,710 -
(s) Talent Development Partners - 50,000 (850,047) 800,047 -
Total restricted funds 952,329 1,059,038 (2,752,217) 1,728,470 987,620
At 1 January Incoming Resources Transfers At 31
2019 £ resources expended £ December
£ £ 2019 £
Unrestricted funds 2019
General 182,253 3,095,156 (1,979,219) (1,187,567) 110,623
Restricted funds 2019
BBC Introducing 48,258 - (71,421) 71,968 48,805
Beyond Borders 42,849 72,000 (106,707) 36,110 44,252
The Composers' Fund 127,911 - (58,323) 97,811 167,399
The Hitmaker Fund 81,599 - (160,211) 122,458 43,846
International Showcase Fund 89,339 265,169 (457,483) 150,695 47,720
Keychange 83,865 126,948 (235,388) 71,456 46,881
Lynsey de Paul Prize 7,604 - (2,100) - 5,504
MiR: China (evaluation) - 15,000 (15,926) 926 -
National Film and TV School - 5,000 (10,687) 5,687 -
New Music Biennial 7,101 20,320 (96,559) 69,138 -
New Music Plus...UK 11,563 - - (11,563) -
PPL Momentum Music Fund 403,366 464,530 (767,744) 325,046 425,198
ReBalance 3,266 7,800 (22,610) 20,766 9,222
Resonate 154,505 - (109,664) 70,961 115,802
Royal Opera House 4,000 - (3,310) (690) -
Steve Reid InNOVAtion Award - - (6,562) 4,262 (2,300)
Women Make Music - 49,833 (202,369) 152,536 -
Total restricted funds 1,065,226 1,026,600 (2,327,064) 1,187,567 952,329

Page 36

Notes to the accounts For the year ended 31st December 2020

17 Movement in funds (continued)

As a flagship programme, Beyond Borders stimulates and strengthens cross-border collaborations between music creators, performers and presenters. It supports the creation, touring and promotion of innovative and high-quality new music across all genres and encourages engagement with audiences across England, Scotland, Wales, Northern Ireland, and since 2014, the Republic of Ireland through multiple performances and digital activities. Support is given to up to 8-10 projects per year with funding of up to £15,000 available for projects that include new commissions, recordings and repeat performances of music written in the past five years. It is managed and funded by PRS Foundation with funds also from Creative Scotland, Arts Council of Wales, and Arts Council of Northern Ireland.

Page 37

Notes to the accounts For the year ended 31st December 2020

17 Movement in funds (continued)

(g) Keychange Keychange is a pioneering international initiative which transforms the future of music whilst encouraging festivals and music organisations to include 50% women and underrepresented genders in programming, staffing and beyond. Initiated by PRS Foundation and European partners, Keychange is led by Reeperbahn Festival, PRS Foundation and Musikcentrum Ost, supported by the Creative Europe programme of the European Union, in partnership with Tallinn Music Week, Iceland Airwaves, BIME, Oslo World, Linecheck/Music Innovation Hub, Ireland Music Week, SACEM, Liverpool Sound City, Way Out West, Spring Break, MAMA, Mutek and Breakout West.

The Lynsey de Paul Prize was an opportunity for emerging female solo music creators, set up in collaboration with the PRS Members’ Fund, in memory of the critically acclaimed and award winning Lynsey de Paul.

Power up is a new ambitious, long term initiative which will support Black music creators and industry professionals and executives, as well as addressing anti-Black racism and racial disparities in the music sector. Set up and managed by PRS Foundation in partnership with YouTube Music, Beggars Group and the Black Music Coalition, the initiative brings together several music industry partners and goes beyond solidarity, with new approaches which foster meaningful change. PRS for Music supported the development of Power Up in 2020.

The PPL Momentum Music Fund offers grants of £5,000 to £15,000 for UK based artists/bands to break through to the next level of their careers. Activities eligible for support include recording, touring and marketing. The PPL Momentum Music Fund is run by PRS Foundation in partnership with PPL, Creative Wales, Arts Council of Northern Ireland, Invest NI and Spotify. PRS Foundation and Arts Council England initiated The Momentum Music Fund in 2013.

Page 38

Notes to the accounts For the year ended 31st December 2020

17 Movement in funds (continued)

As a partnership between the Steve Reid Foundation and PRS Foundation, the Steve Reid InNOVAtion Award supports outstanding emerging artists through expert mentorship and vital bursaries. This innovative creative development project is open to anyone writing and performing across all genre and is currently unsigned and unmanaged, and mentors have included Gilles Peterson, Floating Points and Four Tet. It is managed and funded by the Foundation also with funds from the Steve Reid Foundation.

Thanks to the Spotify COVID-19 Music Relief Fund and generous donations from members of the public, PRS Foundation launched the Sustaining Creativity Fund to support artists, songwriters and composers to create and develop when they need it most. For those experiencing significant impact on their work, income and ability to complete planned musical activities, we wanted to enable creativity and to help grantees to be in a good position to fulfil creative and career potential, breaking down the huge barriers presented by the Covid-19 pandemic.

PRS Foundation Talent Development Partners (TDP) are organisations working at the frontline of talent development in the UK, supporting a broad range of individual music creators across different music genres and UK regions. The TDPs have been selected for the quality and range of opportunities they are offering in their region/music specialism and the year-round impact their work is having on the music creators they support. Each TDP receives a grant from the Foundation for their year-round activity. They also act as PRS Foundation Ambassadors, signposting music creators not currently aware of our support to our funds for individual music creators. The TDP Network is managed and funded by PRS Foundation also with funds from the National Foundation for Youth Music.

Page 39

Notes to the accounts For the year ended 31st December 2020

18[Net cash outflow from operating activities]

[Net cash outflow from operating activities]
2020 2019
£ £
Net income as per Statement of Financial Activities 29,929 (184,527)
Adjustments for:
Investment income (5,122) (18,978)
Depreciation of tangible fixed assets 905 113
Amortisation of intangible fixed assets - -
Decrease / (increase) in debtors 349,182 31,180
Increase / (decrease) in creditors 842,921 132,572
Net cash used in operating activities 1,217,815 (39,640)

19 Related parties

During the year the charity received a donation of £2,750,000 (2019: £3,000,000) from a member, the Performing Right Society Limited, of which £2,750,000 was received by the end of December 2020 (2019: £3,000,000).

The Foundation has the use of PRS's premises and a range of associated services. This has been funded by PRS to the value of £87,371 (2019: £63,137).

During the year the charity made grants to the following institutions who share a common trustee or key management personnel with the Foundation:

2020 2019
£ £
Urban Development 23,500 -
Roundhouse Trust 23,000 -
Heart n Soul 20,000 -
Future Bubblers / Brownswood Music 17,000 -
Royal Liverpool Philharmonic Orchestra - -
Carwyn Ellis/Colorama - 4,000
Honeyblood - 8,000
LIFE - 4,220

During the year the charity also made grants totalling £24,000 to 3 individuals (2019: £42,230 to 4 individuals), who are represented by publishers who are trustees of the charity.

20 Legal status

The charity is a company limited by guarantee and has no share capital. The members of the company are the Performing Right Society Limited and the trustees. The liability of each member in the event of a winding up is £10.

Page 40