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2021-08-31-accounts

COMPANY REGISTRATION NUMBER: 04109942 CHARITY REGISTRATION NUMBER: 1085485

The Academy of Ancient Music Company Limited by Guarantee Unaudited Financial Statements

For the Year Ended

31 August 2021

The Academy of Ancient Music

Company Limited by Guarantee

Financial Statements

Year Ended 31 August 2021

Pages
Trustees' Annual Report (incorporating the Directors’ Report) 1 to 9
Independent Examiner's Report to the Trustees 10
Statement of Financial Activities (including Income and Expenditure Account) 11
Statement of Financial Position 12
Statement of Cash Flows 13
Notes to the Financial Statements 14 to 25

The Academy of Ancient Music

Company Limited by Guarantee

Trustees' Annual Report (incorporating the Directors’ Report)

Year Ended 31 August 2021

The Trustees, who are also the Directors for the purposes of company law, present their Report and the unaudited Financial Statements of the charity for the year ended 31 August 2021.

REFERENCE AND ADMINISTRATIVE DETAILS

The Academy of Ancient Music

Registered charity name Charity registration number 1085485 Company registration number 04109942

Trustees

The Trustees who served the charity during the year and those who are currently serving are as follows:

----- Start of picture text -----
Elise Badoy 3 Appointed 28 January 2021
Jane Barker CBE Appointed 13 January 2022
Paul Baumann CBE (Chair from 1 1
September 2021)
Hugh Burkitt (Deputy Chair) 2
, 3
Alan Clark Appointed 29 April 2021
Elizabeth de Friend 3
Philip Jones (Chair to 31 August 2021) 3 Resigned 31 August 2021
Graham Nicholson 1, 2
John Reeve Resigned 28 January 2021
Terence Sinclair 3 Resigned 28 January 2021
Helen Sprott 1 Appointed 28 January 2021
Madeleine Tattersall 2
Janet Unwin Resigned 29 April 2021
Kim Waldock
----- End of picture text -----**

1 = member of Audit and Risk Committee as at 31 August 2021 2 = member of Nominations Committee as at 31 August 2021 3 = member of Development Board as at 31 August 2021 * indicates Chair of committee as at 31 August 2021 ** indicates Chair of Development Board as at 31 August 2021

Principal and registered Cherry Trees Centre
office St Matthew's Street
Cambridge
CB1 2LT
Honorary President Christopher Purvis CBE
Chief Executive John McMunn
Music Director Richard Egarr (to 31 August 2021)
Laurence Cummings (from 1 September 2021)
Founder Christopher Hogwood CBE
Secretary John McMunn

- 1 -

The Academy of Ancient Music

Company Limited by Guarantee

Trustees' Annual Report (incorporating the Directors’ Report) (continued)

Year Ended 31 August 2021

REFERENCE AND ADMINISTRATIVE DETAILS (continued)

Independent Examiner Shane Tharby FCA For and on behalf of Streets Chartered Accountants 3 Wellbrook Court Girton Cambridge CB3 0NA

VISION & MISSION, CHARITY OBJECTIVES AND PUBLIC BENEFIT STATEMENT

Vision

The Academy of Ancient Music aspires to be at the forefront of the global historically-informed performance movement, recognised universally for the quality of our performances and the impact of our scholarship and educational work.

Mission

The Academy of Ancient Music exists to delight and inspire audiences the world over with historically-informed performances of baroque and classical music of the highest quality. We believe that great art is for everyone, regardless of background or means, and we are committed to sharing our work as widely as possible through live performance, recordings and digital media.

Underpinning this mission are three core beliefs:

Charity objectives

The objectives of the charity are to advance the education of the public in the art of baroque and early classical music and the allied arts. There have been no changes to the charity's objectives since the last annual report.

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The Academy of Ancient Music

Company Limited by Guarantee

Trustees' Annual Report (incorporating the Directors’ Report) (continued)

Year Ended 31 August 2021

VISION & MISSION, CHARITY OBJECTIVES AND PUBLIC BENEFIT STATEMENT (continued)

Public Benefit Statement

The Trustees regularly review the charity's activities to ensure the highest benefit to the public. The Trustees confirm that they have considered the Charity Commission's general guidance on public benefit in setting the charity's aims and objectives and in planning particular activities.

The charity exists to enrich people's lives with historically informed baroque and classical music performed and recorded to the highest standard, and by nurturing young audiences, artists and aspiring managers.

The orchestra's management are tasked with ensuring the charity's activities are accessible to all members of the public. Examples of steps taken to ensure broad public accessibility include:

YEAR IN REVIEW

COVID-19 continued to cause significant disruption to AAM's activities across the 20/21 season, though there were also significant creative opportunities resulting from the challenges of the pandemic. Building upon the orchestra's good work developing digital audiences with free media and live-streaming in the immediate pre-pandemic period, we commissioned, designed and launched AAM Live: a proprietary, paywalled live-streaming portal. This new portal allowed us to present three ticketed concerts - both live and on-demand - to a global audience from West Road Concert Hall in Cambridge. These performances, featuring AAM principals, incoming Music Director Laurence Cummings, guest directors Steven Devine and Peter Whelan, and mezzo-soprano Helen Charlston, were viewed by more than 1,150 people live or 'as live', and will reach thousands more in perpetuity as shareable digital content on social media and via the AAM website.

In addition to own-promoted live-streamed programming, the organisation continued to work closely with partners at the Barbican Centre, presenting a seasonal performance of Handel's Messiah in December 2020 and Vivaldi's The Four Seasons in June 2021 on the Barbican's own Live from the Barbican platform. These performances reached digital audiences of 3,000 and 500 respectively; in-person audiences were allowed back in the Hall for the Vivaldi, which sold out at the government mandated maximum capacity of 50% (or c.1,000 audience members). The orchestra also returned to VOCES8's Live from London digital festival in March 2021 with a performance of JS Bach's Mass in B minor , released on Easter Sunday 2021. Surpassing viewership for AAM's previous festival appearance, this 'as live' on-demand performance reached nearly 5,000 people across individual and season ticket sales, and excerpts from the concert have now been viewed nearly 100,000 times on YouTube.

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The Academy of Ancient Music

Company Limited by Guarantee

Trustees' Annual Report (incorporating the Directors’ Report) (continued)

Year Ended 31 August 2021

YEAR IN REVIEW (continued)

As a result of these activities, digital followership for the orchestra grew significantly in the year both online and across social media. On 31 August 2021, AAM had more than 30,000 subscribers on YouTube; 45,000 followers on Facebook; 8,000 followers on Twitter; 3,000 followers on Instagram, and more than 1,000,000 monthly listeners on Spotify, making us the most listened-to ensemble of our kind on that platform.

External, in-person engagements were significantly down on previous years because of government restrictions on live events, but the orchestra nevertheless performed publicly at the Stour Music Festival and the University of York, with the Choir of the Queen's College, Oxford, at the Deal and New Malden festivals, and at Milton Court in London and Iford Manor in Wiltshire. Further, we undertook a significant international tour - to Pollença, Santander and Burgos - in August 2021, our first since 2020 and the first tour to Spain by any UK orchestra since Brexit.

Recordings made across the 20/21 season included Haze , a collaboration with the composer Daniel Kidane and guitarist Sean Shibe, as part of the Barbican Sessions series; a collection of works for choir and orchestra by Giovanni Bononcini with the Choir of the Queen's College, Oxford for release on Signum Records; and the first of the final five discs of our ongoing Mozart Piano Concerto cycle (featuring K467 and K491), planned for release on AAM Records in the 22/23 season. In addition to these new recordings, two recordings were released on AAM Records across the year: Dussek's Messe Solemnelle ( BBC Music Magazine Choral Award nominee; Gramophone Classical Music Awards winner) and Eccles' Semele (Gramophone Classical Music Awards nominee, produced in association with Cambridge Handel Opera Company and Cambridge Early Music). In recognition of both releases, and of the achievements of outgoing Music Director Richard Egarr, AAM was nominated for Gramophone Orchestra of the Year 2021 .

Other highlights of the year included a BBC Radio 4 feature on our performance of Vivaldi's The Four Seasons at the Barbican as part of the How to Play series, the rebroadcast of an earlier performance on Classic FM as part of Live Music Month in October 2020, and the broadcast of our recording of Anna Amalia's Overture to Erwin und Elmire on BBC Radio 3's Early Music Show on International Women's Day.

The Trustees are grateful to the orchestra's players, its executive and staff for their loyalty, determination and ongoing creativity in challenging circumstances.

PLANS FOR FUTURE PERIODS

Artistic excellence on the concert platform, investment in digital and recorded content, and nurturing the audiences, artists and arts managers of the future will remain central to the charity's work as COVID restrictions are lifted and our industry returns to more normal modes of operation.

The 21/22 season is the first under our next Music Director, Laurence Cummings, and features a full programme of own-promoted events at the Barbican Centre, London and West Road Concert Hall, Cambridge organised around the theme: New Worlds . While domestic engagements and foreign touring opportunities continue to be limited, we are returning to the Chipping Campden International Music Festival, the Cadogan Hall (London), the Sheldonian Theatre (Oxford), King's College (Cambridge), The Apex (Bury St Edmunds), the Bath Bachfest and Snape Maltings over the course of the season. International touring engagements include the orchestra's debut at the Elbphilharmonie (Hamburg), as well as returns to Soli Deo Gloria (Braunschweig) and Musikfest ION (Nuremberg). The orchestra has had to withdraw from planned performances in Moscow and St Petersburg due to the ongoing conflict in Ukraine.

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The Academy of Ancient Music

Company Limited by Guarantee

Trustees' Annual Report (incorporating the Directors’ Report) (continued)

Year Ended 31 August 2021

PLANS FOR FUTURE PERIODS (continued)

The orchestra remains committed to digital content creation, including live-streaming as many of its own-promoted performances as possible. In 21/22, in addition to streaming our season-opening co-production of Haydn's The Creation as part of the Live from the Barbican series, we are broadcasting all five of our Milton Court promotions via AAM's proprietary streaming portal, AAM Live . We also plan to complete the Mozart Piano Concerto cycle begun nearly 30 years ago by our founder Christopher Hogwood and scholar-pianist Robert Levin and restarted after a pause of several years in August 2021. Finally, while plans are not confirmed due to artist availability issues, we hope to record the second book of Dario Castello's Sonate concertate in stil moderno with our former Music Director, Richard Egarr.

In April 2021, the Trustees adopted a new strategy for AAMplify, the orchestra's innovative education initiative. After more than a year of COVID disruption, this document reoriented the scheme around developing the audiences, artists and arts managers of the future. As part of this larger strategy, by the end of the 21/22 season we hope to have identified five key institutions amongst current and potential tertiary partners to deliver our work with young artists specifically. We plan to appoint a part-time player facilitator (45 days per annum) to manage and deliver this work, in consultation with the Chief Executive and Head of Planning and Operations, and we hope for these activities to feed into an annual AAMplify orchestral project in future seasons, allowing young professionals the opportunity to perform larger-scale works usually beyond the scope of music colleges and universities side-by-side with our acclaimed professionals.

Looking beyond the immediate future, it is worth noting that the 23/24 season will be AAM's 50th Anniversary. Plans for this significant milestone are still developing but will include the publication of an account of the orchestra's history to date by noted author and former Hogwood Fellow Richard Bratby, the release of the complete Mozart Piano Concerto cycle with Robert Levin, and other programmes and events designed to maximise the artistic opportunities that such occasions offer while strengthening our endowment for future investment. In the meantime, the Trustees look forward to continuing to build upon the excellent creative partnership already begun between the orchestra's players and Music Director Laurence Cummings.

FINANCIAL POLICY AND PERFORMANCE

AAM receives no regular public funding and is entirely reliant on generated income and voluntary giving. We are fortunate to have the benefit of a substantial bequest from our founder, the late Christopher Hogwood, without which our position would be extremely challenging. The financial flexibility provided by this bequest enables us to maintain our level of artistic ambition and our commitment to exceptional artistic quality. Our reserves were initially reduced by the global pandemic but during the year ended 31 August 2021 we benefitted both from government support and high levels of voluntary income, in particular in support of our ongoing Mozart recording project. Total income in the period amounted to £757k (2020: £934k), but with expenditure reduced to £570k (2020: £1,089k) we finished the year to 31 August 2021 with a net surplus of £187k, of which £103k was income received for recordings and productions in 21/22.

Reserves and investment policy

In view of fluctuations in concert income from year to year, exacerbated by the increased financial risks created by the uncertainties in the immediate post-pandemic period, the Trustees consider it prudent to aim to maintain general unrestricted reserves of at least six months' support costs and three months' expenditure on own-promotion concerts. This amounts to a target of at least £300k currently.

The charity maintained its cash holdings at high levels in the period to allow it to respond to volatility in the sector. Since the year-end, funds held as current asset investments have been moved into longer-term investments under a strict ethical mandate, with the aim of protecting capital from inflationary erosion.

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The Academy of Ancient Music

Company Limited by Guarantee

Trustees' Annual Report (incorporating the Directors’ Report) (continued)

Year Ended 31 August 2021

FINANCIAL POLICY AND PERFORMANCE (continued)

Reserves and investment policy (continued)

Unrestricted reserves on 31 August 2021 totalled £982k, including general reserves of £357k and £625k remaining from the legacy described above, which the Trustees have designated as a special fund to be used to support activities which would not otherwise be possible. In addition, we have £141K in restricted funds available for strategic recording projects and future concerts.

Fundraising

The charity undertakes fundraising from individuals, trusts/foundations and statutory sources, led by the Head of Development, Liz Brinsdon, with support from the Development and Events Manager, Alice Pusey.

Voluntary income for the year comprising both grants and gifts from individuals stood at £431,000. The orchestra was grateful to receive several major grants, notably from Cockayne - Grants for the Arts, the John Armitage Charitable Trust, the John Ellerman Foundation, the John R Murray Charitable Trust and the J Paul Getty Jr General Charitable Trust. In addition, AAM was grateful to receive £48,133 in funding from the government-funded Culture Recovery Fund, distributed through Arts Council England. This income, the first of two instalments, is shown within our accounts under Charitable Activities and funded our concert-giving and live-streaming programme in spring 2021.

We continued to benefit from the support of our loyal family of donors - Academy members, Associates and Friends - who make largely unrestricted gifts, without which we could not deliver our work. Further, we received additional donations to complete our recordings of Mozart's Piano Concertos, featuring pianist and notable Mozart scholar, Robert Levin. We also ran a match-funding campaign as part of The Big Give Christmas Challenge in December 2020 to raise funds for our programme of concerts and live-streaming. We would like to thank everyone who has made a gift to any of our campaigns in the past year.

No third-party fundraisers were used to raise funds during the financial year. Fundraising was undertaken via telephone, e-mail, direct mail and events, in line with the Code of Fundraising Practice set by the Fundraising Regulator, with which the charity is registered. We are committed to ensuring that no-one, and especially no vulnerable person, feels subject to unreasonable intrusion of privacy or persistent or undue pressure to donate. No complaints were received about our fundraising during the financial year.

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The Academy of Ancient Music

Company Limited by Guarantee

Trustees' Annual Report (incorporating the Directors’ Report) (continued)

Year Ended 31 August 2021

STRATEGY AND BUSINESS PLAN

Taking advantage of decreased levels of activity and new executive leadership, AAM undertook a significant strategic review of its operations over the year. This resulted in a new business plan (adopted by the Trustees in October 2021) clarifying the mission and vision of the organisation and articulating key strategic objectives for the 21/22 season through to the 50th Anniversary season in 23/24. These objectives include:

As reflected in the third core belief of AAM’s new mission statement (above), we plan to place particular emphasis on diversity, equity and inclusion going forward and will adopt a DEI policy in 21/22, setting clear targets for representation across the composers we perform, the artists with whom we work, and the staff and Trustees who manage our operations. Despite the obvious and real constraints on AAM’s ability to effect immediate and lasting change in this area, we are nevertheless committed to doing all we can to make historical performance as accessible and inclusive as possible.

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The Academy of Ancient Music

Company Limited by Guarantee

Trustees' Annual Report (incorporating the Directors’ Report) (continued)

Year Ended 31 August 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Status and governing instrument

The Academy of Ancient Music (AAM) is a charitable company limited by guarantee, incorporated on 17 November 2000 and governed by a Memorandum and Articles of Association.

Organisational structure

Board of Trustees

The activities of the AAM are ultimately controlled by the Board of Trustees, which meets at regular intervals to provide strategic direction and to monitor the work of the executive and the orchestra. During the year there were four Board meetings. The orchestra's Chief Executive, Music Director and player representatives have standing invitations to Board meetings. Other staff members attend meetings as appropriate.

New Trustees are appointed by the Board on the recommendation of the Nominations Committee. Trustees are normally expected to serve for a maximum of nine years and their continued membership of the Board is reviewed every three years from the date of appointment. Prior to joining the Board, new Trustees have meetings with the Chair, the Chair and members of the Nominations Committee, and the Chief Executive.

Nominations Committee

The Nominations Committee is a committee of the Board of Trustees whose role is to ensure that procedures are in place for the nomination and selection of members of the Board of Trustees and Development Board; it has regard for the size, composition, diversity and succession needs of both Boards, taking into account their required balance of skills, knowledge and experience.

Audit and Risk Committee

The Audit and Risk Committee is a committee of the Board of Trustees. It provides oversight of the accounting systems, accounting policies, financial reporting and internal controls of the organisation and it makes recommendations to the Board on any changes that are required. Working with the Executive, it reviews the budgets, forecasts, management accounts and the annual accounts and recommends them to the Board for approval. The Committee also has responsibility for oversight of risk management within the organisation. Working with the Executive it reviews significant risks, assesses their impact (probability and magnitude), and makes recommendations to the Board on the best ways of managing and mitigating risk. It reviews the work of the auditors or independent examiner and, if necessary, recommends changes to the Board for subsequent approval.

The most significant risks to the charity across the year were identified to relate to reduced income (ticketed, voluntary and via engagement fees) resulting from COVID disruption. The Committee judged mitigations in place to be sufficient to manage the current situation, but will continue to monitor the charity's position with regard to these and other risks going forward.

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The Academy of Ancient Music

Company Limited by Guarantee

Trustees' Annual Report (incorporating the Directors’ Report) (continued)

Year Ended 31 August 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Development Board

The Development Board has an advisory and support function in relation to fundraising and is not a committee of the Board of Trustees. It brings together AAM supporters who are actively engaged in introducing potential donors and raising funds for the orchestra. Members are appointed for three-year terms of office by the Development Board Chair. As at 31 August 2021, the Development Board comprised Elise Badoy (chair), Hugh Burkitt, Elizabeth de Friend, Andrew Gairdner, Philip Jones, Agneta Lansing, Terence Sinclair and Fiona Stewart.

The Development Board met four times during the year. Development Board members gain an understanding of the orchestra's workings by attending rehearsals as well as concerts and supporter events; act as ambassadors and advocates for the orchestra by introducing potential supporters to its work; serve on working parties established by the Development Board to work on specific fundraising projects as appropriate from time to time; and support the executive fundraising staff in their work.

AAM Council

The AAM Council brings together individuals involved with the AAM as ambassadors, advisers and major donors. The Council meets annually to receive an update on the AAM's work, and additionally as required.

Appraisal of the Boards and Committees

The Board reviews its own performance on an annual basis. The Trustees and the Chief Executive assess how the Board functions as a whole, and, where appropriate, make changes. There is a similar review of the Development Board and committees. The respective Chair reviews the performance of each member of the Board and Development Board, assessing their contribution and the possible further development of their skills. Following discussions with other Board members, the Deputy Chair and/or Chair of the Nominations Committee similarly reviews the performance of the Chair of the Board.

Executive staff

The Chief Executive is vested with day-to-day responsibility for the running of the orchestra. At the year-end he was supported by 5 additional staff, as well as external freelance marketing and PR consultants.

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The Trustees' Annual Report was approved on 19 May 2022 and signed on behalf of the Board of Trustees by:

Paul Baumann CBE Chair

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The Academy of Ancient Music

Company Limited by Guarantee

Independent Examiner's Report to the Trustees of The Academy of Ancient Music

Year Ended 31 August 2021

I report to the trustees on my examination of the financial statements of The Academy of Ancient Music ('the charity') for the year ended 31 August 2021.

Responsibilities and basis of report

As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements 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 the 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

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

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

  2. the financial statements do not accord with those records; or

  3. the financial statements 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 financial statements 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 be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Shane Tharby FCA Independent Examiner

For and on behalf of Streets Chartered Accountants 3 Wellbrook Court Girton Cambridge CB3 0NA

23 May 2022

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The Academy of Ancient Music

Company Limited by Guarantee

Statement of Financial Activities (including Income and Expenditure account)

Year Ended 31 August 2021

2021 2020
Unrestricted Restricted
funds funds Total funds Total funds
Note £ £ £ £
Income and endowments
Donations and legacies 5 269,581 161,433 431,014 384,813
Charitable activities 6 277,208 48,133 325,341 546,039
Investment income 7 300 300 3,283
───────── ───────── ───────── ─────────
Total income 547,089 209,566 756,655 934,135
═════════ ═════════ ═════════ ═════════
Expenditure
Expenditure on raising funds:
Costs of raising donations and
legacies 8 89,675 89,675 94,510
Expenditure on charitable activities 9,10 373,150 107,288 480,438 994,237
───────── ───────── ───────── ────────────
Total expenditure 462,825 107,288 570,113 1,088,747
═════════ ═════════ ═════════ ════════════
───────── ───────── ───────── ────────────
Net income/(expenditure) 84,264 102,278 186,542 (154,612)
═════════ ═════════ ═════════ ════════════
Transfers between funds 5,000 (5,000)
───────── ───────── ───────── ────────────
Net movement in funds 89,264 97,278 186,542 (154,612)
Reconciliation of funds
Total funds brought forward 892,716 44,300 937,016 1,091,628
───────── ───────── ──────────── ────────────
Total funds carried forward 981,980
═════════
141,578
═════════
1,123,558
════════════
937,016
════════════

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 14 to 25 form part of these financial statements.

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The Academy of Ancient Music

Company Limited by Guarantee

Statement of Financial Position

31 August 2021

2021 2020
Note £ £ £ £
Current assets
Debtors 16 214,447 200,697
Investments 17 568,155 567,856
Cash at bank and in hand 443,121 225,138
──────────── ─────────
1,225,723 993,691
Creditors: amounts falling due within
one year 18 102,165 56,675
──────────── ─────────
Net current assets 1,123,558 937,016
──────────── ─────────
Total assets less current liabilities 1,123,558 937,016
──────────── ─────────
Net assets 1,123,558 937,016
════════════ ═════════
Funds of the charity
Restricted funds 141,578 44,300
Unrestricted funds 981,980 892,716
──────────── ─────────
Total charity funds 20 1,123,558
════════════
937,016
═════════

For the year ending 31 August 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

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

These financial statements were approved by the board of trustees and authorised for issue on 19 May 2022, and are signed on behalf of the board by:

Paul Baumann CBE Chair

The notes on pages 14 to 25 form part of these financial statements.

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The Academy of Ancient Music

Company Limited by Guarantee

Statement of Cash Flows

Year Ended 31 August 2021

2021 2020
£ £
Cash flows from operating activities
Net income/(expenditure) 186,542 (154,612)
Adjustments for:
Other interest receivable and similar income (300) (3,283)
Bank charges from investing activities 88
Changes in:
Trade and other debtors (13,750) 60,172
Trade and other creditors 45,490 (74,274)
───────── ─────────
Cash generated from operations 217,982 (171,909)
Interest received 300 22
───────── ─────────
Net cash from/(used in) operating activities 218,282 (171,887)
═════════ ═════════
Cash flows from investing activities
Deposits into money market deposit investments (299)
Deposits taken out of the money market deposit investments 200,065
Bank charges from money market deposit investment transactions (88)
───────── ─────────
Net cash (used in)/from investing activities (299) 199,977
═════════ ═════════
Net increase in cash and cash equivalents 217,983 28,090
Cash and cash equivalents at beginning of year 225,138 197,048
───────── ─────────
Cash and cash equivalents at end of year 443,121
═════════
225,138
═════════

The notes on pages 14 to 25 form part of these financial statements.

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The Academy of Ancient Music

Company Limited by Guarantee

Notes to the Financial Statements

Year Ended 31 August 2021

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Cherry Trees Centre, St Matthew's Street, Cambridge, CB1 2LT.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Charities SORP (FRS 102) Second Edition 'The Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)', the Charities Act 2011 and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements

There are no significant judgements that management has made in the process of applying the entity's accounting policies with no consequent significant effect on the amounts recognised in the financial statements.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. There are no key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charitable objectives of the charity. The trustees may identify certain unrestricted funds as designated funds where they intend to use them for particular future projects or activities.

- 14 -

The Academy of Ancient Music

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 August 2021

3. Accounting policies (continued)

Fund accounting (continued)

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal.

Income

All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

Income from grants and fundraising efforts, where related to performance and specific deliverables, are accounted for as and when the charity fulfils these commitments.

Legacy income is recognised after grant of probate, the executors have established there are sufficient assets in the estate to pay the legacy and any conditions attached to the legacy are under the control of the charity or have been met.

Investment income is included when receivable.

Income from charitable activities is accounted for when earned and relates to income from concerts, education projects and recordings.

Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource.

Cash and cash equivalents

Cash at bank and in hand is held to meet the day to day running costs of the charity as they fall due.

Cash equivalents are short term, highly liquid investments, usually up to 30 day notice interest bearing savings accounts.

- 15 -

The Academy of Ancient Music

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 August 2021

3. Accounting policies (continued)

Current asset investments

Current asset investments are investments that are held with the intention of ringfencing capital to fund exceptional projects and to secure the long term future of the charity.

The investments are held as short term, highly liquid investments to protect capital against the significant volatility of stock markets world wide. Since the year end, some of the funds have been moved into income generating investments with the aim of protecting capital from the erosion of inflation.

Tangible assets

Tangible assets with an individual value over £1,500 are capitalised, initially recorded at cost, and depreciated.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Foreign exchange

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the statement of financial activities.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Defined contribution plans

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

- 16 -

The Academy of Ancient Music

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 August 2021

3. Accounting policies (continued)

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Taxation

No provision has been made for corporation tax or deferred tax as the company is a registered charity and is therefore exempt.

4. Limited by guarantee

The company is limited by guarantee and each member's liability is restricted to £1.

5. Donations and legacies

Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Donations
Individual donors, including AAM Society members 169,581 121,933 291,514
Grants
Grants from charitable trusts and other bodies 100,000 39,500 139,500
───────── ───────── ─────────
269,581 161,433 431,014
═════════ ═════════ ═════════
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Donations
Individual donors, including AAM Society members 200,017 57,046 257,063
Grants
Grants from charitable trusts and other bodies 91,250 36,500 127,750
───────── ──────── ─────────
291,267 93,546 384,813
═════════ ════════ ═════════

- 17 -

The Academy of Ancient Music

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 August 2021

6. Charitable activities

Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Concert income 130,425 130,425
CD sales and royalties 60,111 60,111
Miscellaneous income 1,680 48,133 49,813
OTR relief 57,662 57,662
Coronavirus job retention scheme 27,330 27,330
───────── ──────── ─────────
277,208 48,133 325,341
═════════ ════════ ═════════
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Concert income 370,931 370,931
CD sales and royalties 89,790 89,790
Miscellaneous income 5,565 5,565
OTR relief 79,753 79,753
Coronavirus job retention scheme
───────── ──── ─────────
546,039 546,039
═════════ ════ ═════════
7. Investment income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Bank interest receivable 300 300 3,283 3,283
════ ════ ═══════ ═══════
8. Costs of raising donations and legacies
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Costs of raising donations, grants and
legacies 89,675 89,675 94,510 94,510
════════ ════════ ════════ ════════

- 18 -

The Academy of Ancient Music

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 August 2021

9. Expenditure on charitable activities by fund type

Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Direct costs 309,723 104,365 414,088
Support costs 63,427 2,923 66,350
───────── ───────── ─────────
373,150 107,288 480,438
═════════ ═════════ ═════════
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Direct costs 562,807 82,296 645,103
Support costs 349,134 349,134
───────── ──────── ─────────
911,941
═════════
82,296
════════
994,237
═════════

10. Expenditure on charitable activities by activity type

Activities
undertaken Total funds Total fund
directly Support costs 2021 2020
£ £ £ £
Direct costs 414,088 59,696 473,784 978,881
Governance costs 6,654 6,654 15,356
───────── ──────── ───────── ─────────
414,088
═════════
66,350
════════
480,438
═════════
994,237
═════════

11. Analysis of support costs

Allocated to Allocated to
cost of raising charitable
funds activities Total 2021 Total 2020
£ £ £ £
Staff costs 87,583 36,706 124,289 325,319
Premises 7,019 7,019 99,028
Other costs 2,092 22,625 24,717 14,276
──────── ──────── ───────── ─────────
89,675
════════
66,350
════════
156,025
═════════
438,623
═════════

12. Independent examination fees

Fees payable to the independent examiner for the independent examination of the financial statements in the current year is £3,100.

In the previous year the financial statements were subject to an audit and the fees payable to the auditor were £5,100.

- 19 -

The Academy of Ancient Music

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 August 2021

13. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

2021 2020
£ £
Wages and salaries 222,334 241,313
Social security costs 18,579 20,138
Employer contributions to pension plans 2,188 4,896
───────── ─────────
243,101
═════════
266,347
═════════

The average head count of employees during the year was 7 (2020: 8). The average number of full-time equivalent employees during the year is analysed as follows:

2021 2020
No. No.
Management 1 1
Administration 3 2
Direct charitable 3 3
──── ────
7 6
════ ════

The number of employees whose remuneration for the year fell within the following bands, were:

2021 2020
No. No.
£70,000 to £79,999 1
£80,000 to £89,999 1
──── ────
1 1
════ ════

14. Trustee remuneration and expenses

No trustees received any remuneration in relation to her or his services as a trustee (2020: £Nil).

No trustees were reimbursed expenses during the year (2020: £Nil).

15. Tangible fixed assets

Office
Equipment
£
Cost
At 1 September 2020 and 31 August 2021 4,300
═══════
Depreciation
At 1 September 2020 and 31 August 2021 4,300
═══════
Carrying amount
At 31 August 2021
═══════
At 31 August 2020
═══════

- 20 -

The Academy of Ancient Music

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 August 2021

16. Debtors

2021 2020
£ £
Trade debtors 62,633
Prepayments and accrued income 76,875 91,345
Other debtors 74,939 109,352
───────── ─────────
214,447 200,697
═════════ ═════════
17. Investments
2021 2020
£ £
Short term bank deposits above 30 days notice 568,155 567,856
═════════ ═════════
18. Creditors: amounts falling due within one year
2021 2020
£ £
Trade creditors 68,152 14,249
Accruals and deferred income 25,239 34,049
Social security and other taxes 7,481 6,218
Other creditors 1,293 2,159
───────── ────────
102,165
═════════
56,675
════════

Accruals and deferred income includes £3,718 (2020: £nil) of income for expenditure in the 2021-2022 concert season (2020: 2020-21 concert season).

19. Pensions and other post retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £2,188 (2020: £4,896).

- 21 -

The Academy of Ancient Music

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 August 2021

20. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
At 1 September At 31 August
2020 Income Expenditure Transfers 2021
£ £ £ £ £
Designated funds 624,552 624,552
Unrestricted funds 268,164 547,089 (462,825) 5,000 357,428
───────── ───────── ───────── ─────── ─────────
892,716 547,089 (462,825) 5,000 981,980
═════════ ═════════ ═════════ ═══════ ═════════
At
1 September At 31 August
2019 Income Expenditure Transfers 2020
£ £ £ £ £
Designated funds 714,552 (90,000) 624,552
Unrestricted funds 344,026 840,589 (1,006,451) 90,000 268,164
──────────── ───────── ──────────── ──────── ─────────
1,058,578
════════════
840,589
═════════
(1,006,451)
════════════

════════
892,716
═════════

The Trustees have designated the legacy received from Christopher Hogwood as a fund to be used by the orchestra in engaging in performances, recordings and other projects which would not otherwise be possible. During the previous year £45,000 was released in support of the world premiere performance and recording of JL Dussek's Messe Solemnelle . A further £45,000 was released for extraordinary COVID-19 reliefs for musicians including cancellation fees and other payments.

- 22-

The Academy of Ancient Music

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 August 2021

20. Analysis of charitable funds (continued)

Restricted funds

Restricted funds
At
1 September At 31 August
2020 Income Expenditure Transfers 2021
£ £ £ £ £
Specific Grants and
Donations 5,000 (5,000)
Strategic Recording Fund 18,800 18,800
Musicians' Support Fund
Castello 20,500 20,500
The Creation 34,500 34,500
ACE Cultural Recovery II 48,133 (48,133)
Mozart Piano Concertos 102,752 (34,974) 67,778
Big Give Fit for the Future 24,181 (24,181)
──────── ───────── ───────── ─────── ─────────
44,300 209,566 (107,288) (5,000) 141,578
════════ ═════════ ═════════ ═══════ ═════════
At
1 September At 31 August
2019 Income Expenditure Transfers 2020
£ £ £ £ £
Specific Grants and
Donations 14,250 36,500 (45,750) 5,000
Strategic Recording Fund 18,800 18,800
Musicians' Support Fund 36,546 (36,546)
Castello 20,500 20,500
The Creation
ACE Cultural Recovery II
Mozart Piano Concertos
Big Give Fit for the Future
──────── ──────── ──────── ──── ────────
33,050
════════
93,546
════════
(82,296)
════════

════
44,300
════════

- 23 -

The Academy of Ancient Music

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 August 2021

20. Analysis of charitable funds (continued)

There were several specific grants and donations received in the previous year which were all individually less than £30,000. The £5,000 balance on this fund as at 1 September 2020 was a grant to support live-streaming of concerts in the 2020/21 season.

The Strategic Recording Fund includes donations for future recording projects received in previous years.

The Musicians' Support Fund ran from 1 April 2020 and 10 June 2020 as a discrete campaign during the first COVID-19 lockdown period. Funds raised were paid directly to players.

Castello denotes funds for a recording of Castello's Sonate concertate in stil moderno, libro secondo .

The Creation denotes funds to support a performance and live-stream of Haydn's The Creation in September 2021.

ACE Culture Recovery II denotes funding from Arts Council England, as part of DCMS’s Culture Recovery initiatives, to fund work to build our live-streaming audience.

Mozart Piano Concertos denotes funds for a major project to record five discs of works for keyboard and orchestra by WA Mozart.

Big Give Fit for the Future denotes funds raised in support of concert performances and live-streams in the 20/21 season.

21. Analysis of net assets between funds

Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Current assets 1,084,145 141,578 1,225,723
Creditors less than 1 year (102,165) (102,165)
──────────── ───────── ────────────
Net assets 981,980 141,578 1,123,558
════════════ ═════════ ════════════
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Current assets 949,391 44,300 993,691
Creditors less than 1 year (56,675) (56,675)
───────── ──────── ─────────
Net assets 892,716 44,300 937,016
═════════ ════════ ═════════

- 24 -

The Academy of Ancient Music

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 August 2021

22. Analysis of changes in net debt

Analysis of changes in net debt
At
At 1 Sep 2020 Cash flows 31 Aug 2021
£ £ £
Cash at bank and in hand 225,138 217,983 443,121
Current asset investments 567,856 299 568,155
───────── ───────── ────────────
792,994
═════════
218,282
═════════
1,011,276
════════════

23. Other financial commitments

The charity had other financial commitments of £nil (2020: £9,000) due for payment within 12 months of the balance sheet date.

24. Related parties

Donations received without conditions from related parties, including trustees, in the year totalled £41,153 (2020: £30,430). There were no other related party transactions.

- 25 -