**COMPANY REGISTRATION NUMBER: 04109942 CHARITY REGISTRATION NUMBER: 1085485**
**The Academy of Ancient Music Company Limited by Guarantee**
## **Financial Statements**
**For the year ended**
**31 August 2023**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
## **Financial Statements**
## **Year ended 31 August 2023**
||**Pages**|
|---|---|
|Trustees' Annual Report (incorporating the Directors’ Report)|**1 to 11**|
|Independent Auditor's Report to the Members|**12 to 15**|
|Statement of Financial Activities (including Income and Expenditure Account)|**16**|
|Statement of Financial Position|**17**|
|Statement of Cash Flows|**18**|
|Notes to the Financial Statements|**19 to 30**|
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
**Trustees' Annual Report (Incorporating the Directors’ Report)**
## **Year ended 31 August 2023**
The Trustees, who are also the Directors for the purposes of company law, present their Report and the Financial Statements of the charity for the year ended 31 August 2023.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
**Registered charity name** The Academy of Ancient Music
**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:
|Elise Badoy|2,3**, 4*||
|---|---|---|
|Jane Barker CBE|1*||
|Paul Baumann CBE LVO
(Chair)|4||
|Alan Clark|4||
|Elizabeth de Friend|3||
|Graham Nicholson
(Deputy Chair)|1, 2*||
|Helen Sprott|1|Resigned 27 October 2023|
|Madeleine Tattersall||Resigned 26 January 2023|
|Kim Waldock|||
|Daryl Fielding|||
- indicates Chair of committee as at 31 August 2023
- ** indicates Chair of Development Board as at 31 August 2023
**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** Laurence Cummings OBE **Founder** Christopher Hogwood CBE **Secretary** John McMunn **Auditor** Streets Audit LLP Chartered Accountants & Statutory Auditor 3 Wellbrook Court, Girton Cambridge CB3 0NA
**- 1 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
**Trustees' Annual Report (Incorporating the Directors’ Report)** _**(continued)**_
**Year ended 31 August 2023**
## **REFERENCE AND ADMINISTRATIVE DETAILS** _**(continued)**_
**Bankers**
Lloyds Bank Plc 3 Sidney Street Cambridge CB2 3HQ
## **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 (HIP) 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:
- Music has a unique ability to unite people through shared experience and common purpose. We believe that our commitment to audiences extends beyond the concert hall, and endeavour to create a sense of community around our work through extra-musical enrichment and engagement, all delivered to the same high standard as our performances.
- We believe in the inherent value of historically-informed performance, not because it is ‘authentic’ or ‘correct’, but because of its power to move audiences with performances of striking vitality and immediacy. We value our position as a leader in the field and are committed to furthering the HIP movement through scholarship, discovery, education and training, safeguarding the future of our art for generations to come.
- We acknowledge the need to address historical inequities in the arts and are committed to reflecting the diverse communities in which we work, both on-stage and in our audiences. We will continue to strive to make our work as accessible and inclusive as possible while not abandoning our belief in the timeless relevance of our repertoire.
## **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 2023**
## **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:
- Encouraging attendance at concert performances by school children, students and young people through discounted tickets;
- Freely accessible video content (via the AAM website and elsewhere online);
- Regular broadcasts of concerts on national radio stations both in the UK and abroad, making our music widely accessible through radio and online;
- Free pre-concert talks which are open to all;
- Free concert programmes, available online, containing detailed notes on the music being performed and short biographies of the principal performers;
- Masterclasses, and orchestral workshops in which music students and AAM professionals play side-byside.
## **YEAR IN REVIEW**
AAM’s 22/23 season offered a reassuring contrast to the disruption and challenge of 21/22. We welcomed Julia Kuhn as Principal Second Violin and Katherine Spencer as Principal Clarinet, Laurence Cummings consolidated his relationship with the orchestra in his second year as Music Director, and we enjoyed renewed growth in audiences, both in the concert hall and online.
The orchestra performed 28 concerts across the UK and internationally, reaching an estimated in-person audience of 17,500. Our regular own-promoted season at the Barbican Centre (London) and West Road Concert Hall (Cambridge) was titled _‘Tis nature’s voice_ and featured programmes exploring the natural world and our place within it. The series began with a spectacular staging of Haydn’s lesser-known oratorio _The Seasons_ accompanied by specially commissioned, 3D-mapped projections by Nina Dunn Studios (co-produced with the Barbican). Further performances included Handel’s _Messiah_ and Beethoven’s _Symphony No.6 ‘Pastoral’_ , as well as less frequently performed works by Rebel, Telemann, Vivaldi, JS Bach, Locke, Purcell, Biber and Schmelzer, amongst others. Across the season we were privileged to work with guest artists Rachel Nicholls, Benjamin Hulett, Jonathan Lemalu, Amanda Forsythe, Jess Dandy, Stuart Jackson, Ashley Riches, Sophie Junker, Anna Dennis, Reginald Mobley and Nick Pritchard, as well as stage directors Martin Parr and Thomas Guthrie. AAM’s Leader, Bojan Čičić, curated and directed _Scherzi musicali_ – an evening of ‘musical jokes’ – in Milton Court and West Road, in addition to taking the solo role in Mendelssohn’s _Violin Concerto in E minor_ in Barbican Hall, a performance praised for its ‘control’ and ‘delicacy’ by _Early Music Reviews_ .
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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 2023**
## **YEAR IN REVIEW** _**(continued)**_
Audiences received our 22/23 own-promoted series warmly, rating their overall experience of events 4.7/5 and judging the quality of performances 4.8/5. 95% of attendees reported having enjoyed ‘all’ or ‘most’ of the works performed. Audience levels were also markedly improved on the year, with a 26% increase in small hall (Milton Court/West Road) attendance and a 33% increase in attendance in Barbican Hall compared to 21/22. Critical reception of the season was effusive, with significant coverage in broadsheets, tabloids and online, and ratings of exclusively four- and five-stars. Principal player attendance was 74% in aggregate across the season, and Laurence Cummings directed 85% of own-promoted performances, both in line with business plan targets.
AAM’s domestic touring included returns to The Apex (Bury St Edmunds), Cadogan Hall (London), Cambridge Music Festival, Chipping Campden Music Festival, King’s College (Cambridge), Milton Abbey Summer Music Festival and the Sheldonian Theatre (Oxford). We were delighted to collaborate with the BBC Singers as part of their Milton Court series in a programme of JS Bach cantatas conducted by Peter Dijkstra, and we marked the Coronation of King Charles III with the Choir of St John’s College (Cambridge) in a performance of Handel’s _Coronation Anthems_ , our first collaboration with that acclaimed ensemble. The season closed with our first main series performance as part of the BBC Proms at the Royal Albert Hall in nearly twenty years. Comprising total forces of nearly 200, our presentation of Handel’s _Samson_ with the Philharmonia Chorus and tenor Allan Clayton in the eponymous role was given five-stars in _The Times_ , with reviewer Ivan Hewett heralding it as ‘a heartening and uplifting blaze of glory’.
The orchestra continued to rebuild its international touring profile in 22/23 after more than two years of pandemic disruption, with returns to Korkyra Baroque Festival (Croatia) with a programme of music by Purcell and Handel, Concerts de L’Avent (Fribourg) with Mozart’s _Mass in C minor_ , and Palacio de Congresos Principe Felipe (Oviedo) and the Auditorio Nacional (Madrid) with a new trio sonata programme featuring works by Handel and Bach. In March 2023, we made our debut at AMUZ (Antwerp) with a revival of our celebrated 21/22 programme _South America_ , further performances of which are planned in 23/24. Increasing the number of international engagements continues to be a key strategic objective of the orchestra going forward.
Following the adoption of a new strategy for AAMplify, the orchestra’s innovative education initiative, and the appointment of Leo Duarte as AAMplify Co-ordinator in 21/22, the orchestra began to deliver educational work in conjunction with institutional partners once more in 22/23. In October, Laurence Cummings and 13 AAM professionals joined nearly 40 students from the Royal Academy of Music’s Historical Performance Department for a Beethoven ‘discovery day’. Across morning and afternoon sessions, aspects of 19th century performance practice were explored using Beethoven’s _Symphony No.6 ‘Pastoral’_ as source material. In addition to offering students the opportunity to rehearse side-by-side with our acclaimed musicians, the day allowed students to build their professional networks and AAM a vital opportunity to spot new talent. AAM principals returned to the RAM in June, along with soprano Dame Emma Kirkby and renowned language coach Richard Stokes, for a series of workshop days focussing on Telemann’s funeral cantata _Du aber Daniel, gehe hin;_ and in July AAM co-principal cello Joseph Crouch directed a project with students from the Guildhall School of Music & Drama featuring an eclectic mix of music by Telemann, Fasch and Biber.
In the New Year, we delivered the first AAMplify Masterclass Series in London, three intensive workshop days led by AAM principals on special topics unlikely to feature in standard music college curricula. On 7 Jan, AAM principal flute Rachel Brown led a discovery day on the music of Johann Joachim Quantz in honour of his 250th anniversary year; on 14 Jan, AAM’s Leader Bojan Čičić led a day exploring the _stylus phantasticus_ school of virtuoso violin composition; and on 21 Jan, Joseph Crouch led six intrepid young cellists on an exploration of basso continuo with a special emphasis on realising figured bass on solo cello in late 18th and early 19th century operatic repertoire. Participant feedback from AAMplify side-by-side workshops and masterclasses alike was overwhelmingly positive, with significant numbers reporting themselves to be ‘more likely to pursue a career in historically informed performance’ having taken part.
**- 4 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Directors’ Report)** _**(continued)**_
## **Year ended 31 August 2023**
## **YEAR IN REVIEW** _**(continued)**_
Following the conclusion of AAM’s landmark project to record Mozart’s complete works for keyboard and orchestra with scholar-pianist Robert Levin in 21/22, the orchestra made just one new recording in 22/23: _Infinite Refrain_ , a recital disc of 17th century Venetian love duets with American countertenor Randall Scotting and Spanish tenor Jorge Navarro Colorado, conducted by Laurence Cummings. The disc is due for release on Signum Records in early 23/24. Additionally, AAM released the first two new discs of the Mozart Piano Concerto cycle in 22/23 – Vol.9 K467 & K491, and Vol.10 K107s, K175 & K336. Vol.9 was previewed heavily in the press, with features in _Gramophone, The Sunday Times, International Piano_ and _The Cambridge Independent_ as well as on _The Early Music Show_ (BBC Radio 3), the _Presto Classical_ podcast and widely online. The recording received five-stars in the _Financial Times, Le Devoir_ (Canada) and _BBC Music Magazine_ , whose citation described ‘the piano danc[ing] and sparkl[ing] under Levin’s featherlight touch’. Vol.10 also received five-stars in _BBC Music Magazine_ , with the citation proclaiming ‘AAM are on top form’, while _Gramophone_ described the collection of lesser-known repertoire ‘a somewhat unexpected delight’.
With the return of in-person audiences to the concert hall following the worst of the pandemic-related disruption, AAM took the decision to suspend its live-streaming platform _AAM Live_ indefinitely in 22/23. Nevertheless, the orchestra remains committed to digital content creation and released more than 20 videos on our YouTube channel and across social media in the year. This content comprised previously unreleased clips from live-streamed performances and recording sessions, as well as ‘behind the scenes’ documentaries and concert trailers. As a result of these and other digital efforts, the orchestra grew its reach both online and across social media. On 31 August 2023, AAM had more than 47,300 subscribers on YouTube (up 35%); 48,500 followers on Facebook (up 2%); 4,400 followers on Instagram (up 10%); and 8,800 followers on Twitter/X (level). On streaming services, our channels boasted 82,000 listeners on Amazon Music; 10,000 average daily listeners on Apple Music; and more than 1,000,000 monthly listeners on Spotify, making us the most listened-to ensemble of our kind on that platform.
The orchestra was broadcast widely on the year, in both live performance on Espace 2 (Switzerland) and BBC Radio 3, and features on Classical WCRB (Boston, MA), Classic FM, Cambridge 105 and BBC Radio 3 (In Tune & Record Review), reaching an estimated global audience of 15,900,000.
## **PLANS FOR FUTURE PERIODS**
Artistic excellence on the concert platform, investment in digital and recorded content, and nurturing the audiences and artists of the future will remain central to the charity’s work as AAM celebrates its 50th anniversary season from 17 Sept 2023.
The 23/24 season once again features a full programme of own-promoted events at the Barbican Centre (London) and West Road Concert Hall (Cambridge). The theme for the year will be _The Golden Anniversary_ , a series celebrating cherished AAM triumphs past – beloved works by Handel, Vivaldi, JS Bach and Henry Purcell – while continuing to blaze a trail for historical performance by championing forgotten female and ethnically diverse composers and commissioning a new work for historical instruments for the first time in two decades. In Barbican Hall, highlights include Handel’s _Music for the Royal Fireworks_ and _Silete Venti_ with acclaimed soprano Lucy Crowe; JS Bach’s _St Matthew Passion_ with an all-star consort cast led by Anna Dennis, Tim Mead and Nicholas Mulroy; and a concert performance of Handel’s _Orlando_ with acclaimed British countertenor Iestyn Davies in the eponymous role. In West Road and Milton Court, we highlight the work of female composers at the court of Empress Maria Theresa; present our first complete _Brandenburg Concertos_ in more than a decade; explore the art of the Italian concerto; celebrate dance in the music of the French baroque; and challenge facile notions of identity/nationality in a sequence of music by _Sons of England_ , both well-known and newly rediscovered. UK touring includes returns to Bath BachFest, The Apex (Bury St Edmunds), Hall for Cornwall (Truro), King’s College (Cambridge) and the King’s Lynn Festival; as well as debuts with the Choir of Westminster Abbey, and at the Sherborne Abbey Festival, St George’s (Bristol) and the Tung Auditorium (Liverpool). International touring engagements include debuts at the Monreale Festival of Sacred Music (Sicily), Musica Ricercata (Timisoara, Romania), the Berlin Philharmonie and Festhalle Viersen; as well as returns to Ensemble Vocal Villars-sur-Glâne (Switzerland) and the Musikverein (Vienna).
**- 5 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Directors’ Report)** _**(continued)**_
## **Year ended 31 August 2023**
## **PLANS FOR FUTURE PERIODS** _**(continued)**_
The orchestra also continues to invest in recordings and digital content creation in 23/24. We release the final three volumes of our complete Mozart Piano Concerto cycle with scholar-pianist Robert Levin, and we record two new discs for release in 24/25: the world-premiere recording of John Weldon’s great English opera _The Judgment of Paris_ , a co-production with Cambridge Handel Opera Company, for release on AAM Records; and Michael Haydn’s _Requiem_ and _Missa Sancti Hieronymi_ with Matthew Martin and the Choir of Gonville & Caius College, for release on Linn Records. Previously live-streamed performances of Handel’s _Messiah_ and Vivaldi’s _The Four Seasons_ (filmed as part of the _Live from the Barbican series_ ) air and stream internationally on Sky Arts, and we record audio for a planned film of JS Bach’s _Brandenburg Concertos_ to be released as part of the AAM A-List (see below) from 24/25. Finally, while plans are not yet confirmed due to artist availability issues, we remain committed to recording the second book of Dario Castello’s _Sonate concertate in stil moderno_ with former Music Director Richard Egarr (our recording of the first book was released in 2016).
In 23/24 AAMplify, our innovative education initiative, delivers side-by-side work with the Royal Academy of Music, the Royal College of Music and the Guildhall School of Music & Drama in London; as well as with the Royal Northern College of Music in Manchester. After the success of the inaugural AAMplify Masterclass Series in 2023, further intensive, principal-player led classes are planned on topics ranging from woodwind instrument maintenance to small ensemble management and business planning. Further projects are being planned with all our existing partners, as well as with the Royal Welsh College of Music & Drama, for 24/25.
Beyond these core activities, AAM also plans a number of extraordinary projects and events in 23/24 specifically to mark our 50th anniversary. We launch our anniversary campaign – the AAMbition Fund – in Sept 2023 to raise funds to support the live performance of large-scale and lesser-known repertoire, as well as the creation of the AAM A-List: a new catalogue of high-quality music videos which will be made available for free online, with repertoire to include much-loved favourites by JS Bach, Handel, Mozart and Beethoven alongside less well-known works. We publish _Refiner’s Fire: the Academy of Ancient Music and the Historical Performance Revolution_ , a history of the AAM as told to author Richard Bratby by former performers, managers and supporters of the orchestra. And finally, we celebrate the end of the anniversary year with a Midsummer Gala on Fri 21 June 2024 at Stationers’ Hall in the City of London, with funds raised supporting the AAMbition Fund. AAM has achieved much in its first 50 years, but of course much more ground-breaking work remains to be done. Building upon the excellent creative partnership between Laurence Cummings and the orchestra’s players, as well as the deep expertise and strong leadership of the management team, the Trustees look to AAM’s next 50 years with confidence and eager anticipation.
## **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. Total income in the period increased to £984k (2022: £845k), with expenditure falling marginally to £1,006k (2022: £1,043k) and a gain on investment of £13k (2022: loss of £35k), meaning the charity ended the year to 31 August 2023 with a net loss of £9k, a significant improvement on the approved budget for the year. The key variances related to increased Orchestra Tax Relief and ticketed income for own-promoted events, offset by decreased fundraised income.
## **Reserves and investment policy**
In view of fluctuations in concert income from year to year, exacerbated by the increased financial risks created by uncertainty in the post-pandemic period, the Trustees consider it prudent to maintain general unrestricted reserves of at least six months' support costs and three months' expenditure on own-promotion concerts. This equates to at least £265k currently.
**- 6 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Directors’ Report)** _**(continued)**_
## **Year ended 31 August 2023**
## **FINANCIAL POLICY AND PERFORMANCE** _**(continued)**_
## **Reserves and investment policy** _**(continued)**_
Historically, the charity maintained its cash holdings at high levels to allow it to respond to volatility in the sector. However, in 21/22, £500K of the funds held as current asset investments were moved into longer-term investments operating under a strict ethical mandate, with the aim of protecting capital for long-term use from inflationary erosion. These assets increased in value by £13k over the period (2022: decreased in value by £35k), meaning unrestricted reserves on 31 August 2023 totalled £780k. This included £513k 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, £5k of in-year donations to the AAMbition Fund, and general reserves of £262k. While general reserves fell below the Trustees’ stated policy level, this was not deemed to be material given current projections for 23/24. In addition to unrestricted reserves, at year-end the charity held £101k in restricted funds for strategic recording projects, future concerts and educational work.
## **Fundraising**
The charity undertakes fundraising from individuals, trusts/foundations and statutory sources, led by the Head of Development, Liz Brinsdon.
Voluntary income for the year comprising both grants from charitable trusts and gifts from individuals stood at £315k. The orchestra was grateful to receive a number of major grants, notably from the J Paul Getty Jr General Charitable Trust, the Garfield Weston Foundation and the John R Murray Charitable Trust. We also continued to benefit from the support of our loyal family of individual donors - Academy members, Associates and Friends - who make largely unrestricted gifts, without which we could not deliver our work.
We received additional donations to complete our performance and recording of John Weldon’s _The Judgment of Paris_ through a match-funding campaign as part of The Big Give Christmas Challenge in December 2022. We also received an initial gift in support of our AAMbition Fund campaign, which will be a focus for 23/24, AAM’s 50th anniversary season. We would like to thank everyone who has supported AAM with a gift in the past year.
No third-party fundraisers were used to raise funds during the financial year. Fundraising was undertaken via faceto-face meetings, 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 2023**
## **STRATEGY AND BUSINESS PLAN**
Following a significant review of the charity’s operations, the Trustees adopted a new business plan in October 2021. This clarified the mission and vision of the organisation and articulated key strategic objectives for the 21/22, 22/23 and 23/24 seasons. These objectives include:
- Establishing a clear dominant artistic force (Laurence Cummings) and consolidating a reputation for excellence under his leadership;
- Building on our reputation for distinctiveness in programming and presentation, and for discovery, with a focus on English music, on AAM Records;
- Maximising revenue from AAM Records releases and digital content;
- Better realising the latent potential of digital followership for profile growth and increasing conversion to ticket sales;
- Ensuring the value of existing strategic partnerships and exploring possible new partnerships;
- Nurturing the next generation of audiences, artists and arts managers;
- Increasing the volume of and fees associated with external engagements;
- Regularly delivering a breakeven year-end position before extraordinary projects;
- Investing an appropriate proportion of free reserves to maximise return;
- Increasing the proportion of fundraised income from individual giving;
- Maintaining trust and foundation support and increasing statutory/corporate support;
- Cultivating donor support from outside the UK (with a particular focus on the USA);
- Increasing diversity across operations and ensuring our work is as accessible, inclusive and equitable as possible;
- Ensuring all operations are delivered in as environmentally sustainable a manner as possible.
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 adopted a DEI policy in April 2022, setting out our ambition 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.
**- 8 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
**Trustees' Annual Report (Incorporating the Directors’ Report)** _**(continued)**_
## **Year ended 31 August 2023**
## **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 regularly attend 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 of the Board, 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 as reduced income (ticketed, voluntary and via engagement fees) resulting from ongoing post-COVID disruption and financial pressures due to rising inflation. 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.
**- 9 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
**Trustees' Annual Report (Incorporating the Directors’ Report)** _**(continued)**_
## **Year ended 31 August 2023**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT** _**(continued)**_
## **Investment Committee**
The Investment Committee is a committee of the Board of Trustees. It advises on the level of AAM's resources which should be committed to long-term investment and the strategy for investment of those resources; recommends investment advisers for appointment, including their terms of appointment, and monitors their performance; and reports on the performance of AAM's investments at quarterly meetings of the full Board.
## **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 2023, the Development Board comprised Elise Badoy (Chair), Hugh Burkitt, Elizabeth de Friend, Emmanuelle Dotezac, Pauline Ginestié, Agneta Lansing, Terence Sinclair and Fiona Stewart.
The Development Board met five 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 future plans, and additionally as required.
## **Appraisal of the Boards and Committees**
The Board reviews its own performance on a regular basis. The Trustees and the Chief Executive assess how the Board functions and, where appropriate, make changes. There is a similar review of the Development Board and committees. The respective Chairs review 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 of the Board, who is also the 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 7 members of staff, as well as an external freelance PR consultant.
## **TRUSTEES’ RESPONSIBILITIES STATEMENT**
The Trustees, who are also Directors 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 the charity Trustees to prepare Financial Statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
**- 10 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Directors’ Report)** _**(continued)**_
## **Year ended 31 August 2023**
## **TRUSTEES’ RESPONSIBILITIES STATEMENT** _**(continued)**_
- In preparing these Financial Statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the applicable Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Auditor**
Each of the persons who is a Trustee at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
- they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
## **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 1 February 2024 and signed on behalf of the Board of Trustees by:
Paul Baumann CBE LVO Chair
**- 11 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
## **Independent Auditor's Report to the Members of The Academy of Ancient Music**
## **Year ended 31 August 2023**
## **Opinion**
We have audited the Financial Statements of The Academy of Ancient Music (the 'charitable company') for the year ended 31 August 2023 which comprise the Statement of Financial Activities (including Income and Expenditure Account), Statement of Financial Position, Statement of Cash Flows and the related notes, 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 Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the Financial Statements:
- give a true and fair view of the state of the charitable company’s affairs as at 31 August 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 the 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.
**- 12 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
**Independent Auditor's Report to the Members of The Academy of Ancient Music** _**(continued)**_
## **Year ended 31 August 2023**
## **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. 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.
## **Other matter**
The comparative information has not been audited.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees' Report for the year for which the Financial Statements are prepared is consistent with the Financial Statements; and
- the Trustees' Report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the Financial Statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the Trustees were not entitled to prepare the Financial Statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the Directors’ Report and from the requirement to prepare a Strategic Report
**- 13 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
**Independent Auditor's Report to the Members of The Academy of Ancient Music** _**(continued)**_
## **Year ended 31 August 2023**
## **Responsibilities of Trustees**
As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the Directors 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 charity 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the charitable company through discussions with Directors and other management, and from our commercial knowledge and experience of the arts sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charitable company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the charitable company's Financial Statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
**- 14 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
**Independent Auditor's Report to the Members of The Academy of Ancient Music** _**(continued)**_
## **Year ended 31 August 2023**
- To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 1 were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators and the charity's legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the Financial Statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Shane Tharby (Senior Statutory Auditor)
For and on behalf of Streets Audit LLP Chartered Accountants & Statutory Auditor 3 Wellbrook Court Girton Cambridge CB3 0NA
8 February 2024
**- 15 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
## **Statement of Financial Activities (including Income and Expenditure Account)**
## **Year ended 31 August 2023**
||||**2023**||2022|
|---|---|---|---|---|---|
|||Unrestricted|Restricted|||
|||funds|funds|**Total funds**|Total funds|
||**Note**|**£**|**£**|**£**|£|
|**Income and endowments**||||||
|Donations and legacies|**5**|220,702|94,065|**314,767**|308,912|
|Charitable activities|**6**|662,679|–|**662,679**|526,200|
|Investment income|**7**|14,556|–|**14,556**|9,689|
|||---------------------------------|----------------------------|---------------------------------|---------------------------------|
|**Total income**||897,937|94,065|**992,002**|844,801|
|||=================================|============================|=================================|=================================|
|**Expenditure**||||||
|Expenditure on raising funds:||||||
|Costs of raising donations and||||||
|legacies|**8**|104,108|–|**104,108**|74,464|
|Expenditure on charitable activities|**9,10**|842,195|59,408|**901,603**|968,672|
|||---------------------------------|----------------------------|------------------------------------------|------------------------------------------|
|**Total expenditure**||946,303|59,408|**1,005,711**|1,043,136|
|||=================================|============================|==========================================|==========================================|
|Net gains/(losses) on investments|**12**|4,976|–|**4,976**|(35,082)|
|||---------------------------------|----------------------------|------------------------------------------|------------------------------------------|
|**Net expenditure**||(43,393)|34,567|**(8,736)**|(233,417)|
|||=================================|============================|==========================================|==========================================|
|Transfers between funds|**17**|1,000|(1,000)|**–**|–|
|||---------------------------------|----------------------------|------------------------------------------|------------------------------------------|
|**Net movement in funds**||(42,393)|33,657|**(8,736)**|(233,417)|
|**Reconciliation of funds**||||||
|Total funds brought forward||822,341|67,800|**890,141**|1,123,558|
|||---------------------------------|---------------------------------|------------------------------------------|------------------------------------------|
|**Total funds carried forward**||779,948|101,457|**881,405**|890,141|
|||=================================|=================================|==========================================|==========================================|
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 19 to 30 form part of these Financial Statements.**
**- 16 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
## **Statement of Financial Position**
## **31 August 2023**
|||**2023**||2022||
|---|---|---|---|---|---|
||**Note**|**£**|**£**|£|£|
|**Fixed assets**||||||
|Investments|**19**||**477,736**||464,918|
|**Current assets**||||||
|Debtors|**20**|**228,773**||188,152||
|Cash at bank and in hand||**287,095**||279,820||
|||---------------------------------||---------------------------------||
|||**515,868**||467,972||
|**Creditors: amounts falling due within**||||||
|**one year**|**21**|**112,199**||42,749||
|||---------------------------------||---------------------------------||
|**Net current assets**|||**403,669**||425,223|
||||---------------------------------||---------------------------------|
|**Total assets less current liabilities**|||**881,405**||890,141|
||||---------------------------------||---------------------------------|
|**Net assets**|||**881,405**||890,141|
||||=================================||=================================|
|**Funds of the charity**||||||
|Restricted funds|||**101,457**||67,800|
|Unrestricted funds|||**779,948**||822,341|
||||---------------------------------||---------------------------------|
|**Total charity funds**|**23**||**881,405**
=================================||890,141
=================================|
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 1 February 2024, and are signed on behalf of the Board by:
Paul Baumann CBE LVO Trustee
**The notes on pages 19 to 30 form part of these Financial Statements.**
**- 17 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
## **Statement of Cash Flows**
## **Year ended 31 August 2023**
||**2023**|2022|
|---|---|---|
||**£**|£|
|**Cash flows from operating activities**|||
|Net expenditure|**(8,736)**|(233,417)|
|_Adjustments for:_|||
|Net gains/(losses) on investments|**(4,973)**|35,082|
|Dividends, interest and rents from investments|**(14,556)**|(9,689)|
|_Changes in:_|||
|Trade and other debtors|**(40,621)**|26,295|
|Trade and other creditors|**69,450**|(59,416)|
||----------------------------|---------------------------------|
|Cash generated from operations|**564**|(241,145)|
|Interest received|**–**|9,689|
||--------------|---------------------------------|
|Net cash from/(used in) operating activities|**564**|(231,456)|
||==============|=================================|
|**Cash flows from investing activities**|||
|Dividends, interest and rents from investments|**6,711**|**–**|
|Deposits taken out of the money market deposit investments|**–**|568,155|
|Deposits into investments|**–**|(500,000)|
||------------------------|---------------------------------|
|Net cash from investing activities|**6,711**|68,155|
||========================|=================================|
|**Net increase/(decrease) in cash and cash equivalents**|**7,275**|(163,301)|
|**Cash and cash equivalents at beginning of year**|**279,820**|443,121|
||---------------------------------|---------------------------------|
|**Cash and cash equivalents at end of year**|**287,095**|279,820|
||=================================|=================================|
**The notes on pages 19 to 30 form part of these Financial Statements.**
**- 18 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements**
## **Year ended 31 August 2023**
## **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 and that have the most 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.
**- 19 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 August 2023**
## **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:
- expenditure on raising funds includes the costs of all fundraising activities, events and non-charitable trading activities.
- expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
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.
**- 20 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 August 2023**
## **3. Accounting policies** _**(continued)**_
## **Current asset investments**
Current asset investments are investments that are held with the intention of ringfencing capital to fund exceptional high-quality projects and to secure the long-term future of the charity.
The investments were held as short term, highly liquid investments to protect capital against the significant volatility of stock markets worldwide as at 31 August 2021. The funds were moved into income generating investments with the aim of protecting capital from erosion during the year ended 31 August 2022.
## **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:
Office equipment
- 33% straight line
## **Fixed Asset Investments**
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
## **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.
Other financial instruments, including investments, are initially recognised are subsequently measured at fair value, with any changes recognised in profit or loss.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
**- 21 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 August 2023**
## **3. Accounting policies** _**(continued)**_
## **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.
## **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.
## **Orchestra Tax Relief**
Orchestra Tax Relief is recognised in the period to which it relates.
## **4. Limited by guarantee**
The company is limited by guarantee and each member's liability is restricted to £1.
## **5. Donations and legacies**
|**Donations and legacies**||||
|---|---|---|---|
||Unrestricted|Restricted|**Total Funds**|
||Funds|Funds|**2023**|
||£|£|**£**|
|**Donations**||||
|Individual donors, including AAM Academy members,||||
|Associates and Friends|150,702|35,715|**186,417**|
|**Grants**||||
|Grants from charitable trusts and other bodies|70,000|58,350|**128,350**|
||---------------------------------|----------------------------|---------------------------------|
||220,702|94,065|**314,767**|
||=================================|============================|=================================|
||Unrestricted|Restricted|Total Funds|
||Funds|Funds|2022|
||£|£|£|
|**Donations**||||
|Individual donors, including AAM Academy members,||||
|Associates and Friends|158,031|63,131|221,162|
|**Grants**||||
|Grants from charitable trusts and other bodies|30,000|57,750|87,750|
||---------------------------------|---------------------------------|---------------------------------|
||188,031|120,881|308,912|
||=================================|=================================|=================================|
**- 22 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 August 2023**
## **6. Charitable activities**
||||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|---|---|
||||Funds|Funds|**2023**|
||||£|£|**£**|
||Concert income||434,885|–|**434,885**|
||CD sales and royalties||58,451|–|**58,451**|
||Miscellaneous income||13,343|–|**13,343**|
||Orchestra Tax Relief||156,000|–|**156,000**|
||||---------------------------------|----------------------------|---------------------------------|
||||662,679|–|**662,679**|
||||=================================|============================|=================================|
||||Unrestricted|Restricted|Total Funds|
||||Funds|Funds|2022|
||||£|£|£|
||Concert income||313,793|5,000|318,793|
||CD sales and royalties||64,021|–|64,021|
||Miscellaneous income||8,644|20,628|29,272|
||Orchestra Tax Relief||114,114|–|114,114|
||||---------------------------------|----------------------------|---------------------------------|
||||500,572|25,628|526,200|
||||=================================|============================|=================================|
|**7.**|**Investment income**|||||
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|||Funds|**2023**|Funds|2022|
|||£|**£**|£|£|
||Dividends received|14,556|**14,556**|9,660|9,660|
||Bank interest receivable|–|**–**|29|29|
|||----------------------------|----------------------------|------------------------|------------------------|
|||14,556|**14,556**|9,689|9,689|
|||==========================|===========================|========================|========================|
|**8.**|**Costs of raising donations and legacies**|||||
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|||Funds|**2023**|Funds|2022|
|||£|**£**|£|£|
||Costs of raising donations, grants and|||||
||legacies|104,108
=================================|**104,108**
=================================|74,464
============================|74,464
============================|
**- 23 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 August 2023**
## **9. Expenditure on charitable activities by fund type**
||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|
||Funds|Funds|**2023**|
||£|£|**£**|
|Direct costs|772,579|59,408|**831,987**|
|Support costs|69,616|–|**69,616**|
||---------------------------------|----------------------------|---------------------------------|
||842,195|59,408|**901,603**|
||=================================|============================|=================================|
||Unrestricted|Restricted|Total Funds|
||Funds|Funds|2022|
||£|£|£|
|Direct costs|628,490|276,195|904,685|
|Support costs|63,088|899|63,987|
||---------------------------------|---------------------------------|---------------------------------|
||691,578
=================================|277,094
=================================|968,672
=================================|
## **10. Expenditure on charitable activities by activity type**
|||Activities||||
|---|---|---|---|---|---|
|||undertaken||**Total funds**|Total funds|
|||directly|Support costs|**2023**|2022|
|||£|£|**£**|£|
||Direct costs|831,987|56,564|**888,551**|960,284|
||Governance costs|–|13,052|**13,052**|8,388|
|||---------------------------------|----------------------------|---------------------------------|---------------------------------|
|||831,987|69,616|**901,603**|968,672|
|||=================================|============================|=================================|=================================|
|**11.**|**Analysis of support costs**|||||
|||Allocated to|Allocated to|||
|||cost of raising|charitable|||
|||funds|activities|**Total 2023**|Total 2022|
|||£|£|**£**|£|
||Staff costs|89,948|38,735|**128,683**|111,140|
||Premises|–|7,565|**7,565**|5,035|
||Other costs|14,160|23,316|**37,476**|22,276|
|||----------------------------|----------------------------|---------------------------------|---------------------------------|
|||104,108|69,616|**173,724**|138,451|
|||============================|============================|=================================|=================================|
|**12.**|**Net gains/(losses) on investments**|||||
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|||Funds|**2023**|Funds|2022|
|||£|**£**|£|£|
||Gains/(losses) on other investment assets|4,973
========================|**4,973**
========================|(35,082)
============================|(35,082)
============================|
**- 24 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
**Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 August 2023**
## **13. Auditor’s remuneration**
|||**2023**|2022|
|---|---|---|---|
|||**£**|£|
||Fees payable for the audit of the Financial Statements|**7,975**|–|
|||========================|==============|
|**14.**|**Independent examination fees**|||
|||**2023**|2022|
|||**£**|£|
||Fees payable to the independent examiner for:|||
||independent examination of the Financial Statements|**–**
==============|3,410
========================|
## **15. Staff costs**
The total staff costs and employee benefits for the reporting period are analysed as follows:
||**2023**|2022|
|---|---|---|
||**£**|£|
|Wages and salaries|**260,845**|233,423|
|Social security costs|**21,654**|18,935|
|Employer contributions to pension plans|**6,663**|3,093|
||---------------------------------|---------------------------------|
||**289,162**|255,451|
||=================================|=================================|
The average head count of employees during the year was 8 (2022: 7). The average number of full-time equivalent employees during the year is analysed as follows:
||**2023**|2022|
|---|---|---|
||**No.**|No.|
|Management|**1**|1|
|Administration|**2**|3|
|Direct charitable|**4**|3|
||--------------|--------------|
||**7**|7|
||==============|==============|
The number of employees whose remuneration for the year fell within the following bands, were:
|||**2023**|2022|
|---|---|---|---|
|||**No.**|No.|
|£70,000|to £79,999|**1**
==============|1
==============|
## **16. Trustee remuneration and expenses**
No trustees received any remuneration in relation to her or his services as a trustee (2022: £Nil).
No trustees were reimbursed expenses during the year (2022: £Nil).
## **17. Transfers between funds**
During the year, £1,000 was released from the Castello Recording Fund into general unrestricted funds after restrictions on it were lifted by the donor.
**- 25 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
**Notes to the Financial Statements** _**(continued)**_
**Year ended 31 August 2023**
## **18. Tangible fixed assets**
|||**Office**|
|---|---|---|
|||**Equipment**|
|||**£**|
|**Cost**|||
|**At 1 September 2022 and 31 August 2023**||**4,300**|
|||========================|
|**Depreciation**|||
|**At 1 September 2022 and 31 August 2023**||**4,300**|
|||========================|
|**Carrying amount**|||
|**At 31 August 2023**||**–**|
|||========================|
|At 31 August 2022||–|
|||========================|
|**Investments**|||
|||**Other**|
|||**investments**|
|||**£**|
|**Cost or valuation**|||
|At 1 September 2022||**464,918**|
|Additions||**7,845**|
|Fair value movements||**4,973**|
|||---------------------------------|
|**At 31 August 2023**||**477,736**|
|||=================================|
|**Impairment**|||
|**At 1 September 2022 and 31 August 2023**||**–**|
|||=================================|
|**Carrying amount**|||
|**At 31 August 2023**||**477,736**|
|||=================================|
|At 31 August 2022||464,918|
|||=================================|
|All investments shown above are held at valuation.|||
|**Debtors**|||
||**2023**|2022|
||**£**|£|
|Trade debtors|**24,142**|29,801|
|Prepayments and accrued income|**204,631**|156,380|
|Other debtors|**–**|1,971|
||---------------------------------|---------------------------------|
||**228,773**|188,152|
||=================================|=================================|
## **19. Investments**
All investments shown above are held at valuation.
## **20. Debtors**
**- 26 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 August 2023**
## **23. Analysis of charitable funds** _**(continued)**_
## **21. Creditors: amounts falling due within one year**
||**2023**|2022|
|---|---|---|
||**£**|£|
|Trade creditors|**46,106**|28,047|
|Accruals and deferred income|**49,310**|5,858|
|Social security and other taxes|**16,193**|7,001|
|Other creditors|**590**|1,843|
||---------------------------------|----------------------------|
||**112,199**
=================================|42,749
============================|
Accruals and deferred income includes £26,998 (2022: £2,496) of income for expenditure across the 23/24 own-promoted season (2022: 22/23 own-promoted season).
## **22. 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 £6,663 (2022: £3,093).
## **23. Analysis of charitable funds**
## **Unrestricted funds**
|**Unrestricted funds**|||||||
|---|---|---|---|---|---|---|
||At||||Gains and|**At**|
||1 Sep 2022|Income|Expenditure|Transfers|losses|**31 Aug 2023**|
||£|£|£|£|£|**£**|
|Hogwood Legacy|533,663|7,845|(33,625)|–|4,973|**512,856**|
|AAMbition Fund|–|5,000|–|–|–|**5,000**|
|Unrestricted funds|288,678|885,092|(912,678)|1,000|–|**262,092**|
||---------------------------------|---------------------------------|---------------------------------|----------------------------|------------------------|---------------------------------|
||822,341|897,937|(946,303)|1,000|4,973|**779,948**|
||=================================|=================================|=================================|============================|========================|=================================|
||At||||Gains and|At|
||1 Sep 2021|Income|Expenditure|Transfers|losses|31 Aug 2022|
||£|£|£|£|£|£|
|Hogwood Legacy|624,552|–|–|(55,807)|(35,082)|533,663|
|AAMbition Fund|–|–|–|–|–|–|
|Unrestricted funds|357,428|698,292|(766,042)|(1,000)|–|288,678|
||---------------------------------|---------------------------------|---------------------------------|----------------------------|----------------------------|---------------------------------|
||981,980|698,292|(766,042)|(56,807)|(35,082)|822,341|
||=================================|=================================|=================================|============================|============================|=================================|
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 year £33,625 was released in support of the 50[th] Anniversary Book. During the previous year £55,807 was released in support of the Mozart Piano Concertos.
The Trustees have designated donations received as part of the 50[th] anniversary campaign – the AAMbition Fund – to be used to support the live performance of large-scale and lesser-known repertoire, and the creation of a new catalogue of high-quality music videos: the AAM A-List. Funds will be released as activity is delivered in 23/24 and beyond.
**- 27 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
**Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 August 2023**
## **23. Analysis of charitable funds** _**(continued)**_
## **Restricted funds**
|**Restricted funds**|||||||
|---|---|---|---|---|---|---|
||At||||Gains and|**At**|
||1 Sep 2022|Income|Expenditure|Transfers|losses|**31 Aug 2023**|
||£|£|£|£|£|**£**|
|Strategic Recording|||||||
|Fund|17,800|–|–|–|–|**17,800**|
|Castello Recording|||||||
|Fund|23,000|–|–|(1,000)|–|**22,000**|
|The Creation|–|–|–|–|–|**–**|
|ACE Cultural|||||||
|Recovery II|–|–|–|–|–|**–**|
|Mozart Piano|||||||
|Concerts|–|3,706|(3,706)|–|–|**–**|
|AAMplify|16,000|16,000|(22,452)|–|–|**9,548**|
|The Seasons|11,000|2,250|(13,250)|–|–|**–**|
|John R Murray|–|20,000|(20,000)|–|–|**–**|
|Concerts and|||||||
|Digital Support|||||||
|Fund|–|–|–|–|–|**–**|
|23/24 Concerts|||||||
|Fund|–|22,600|–|–|–|**22,600**|
|Weldon Recording|||||||
|Fund|–|29,509|–|–|–|**29,509**|
||----------------------------|----------------------------|----------------------------|----------------------------|--------------|---------------------------------|
||67,800|94,065|(59,408)|(1,000)|–|**101,457**|
||============================|============================|============================|============================|==============|=================================|
||At||||Gains and|At|
||1 Sep 2021|Income|Expenditure|Transfers|losses|31 Aug 2022|
||£|£|£|£|£|£|
|Strategic Recording|||||||
|Fund|18,800|–|–|(1,000)|–|17,800|
|Castello Recording|||||||
|Fund|20,500|500|–|2,000|–|23,000|
|The Creation|34,500|5,750|(40,250)|–|–|–|
|ACE Cultural|||||||
|Recovery II|–|20,628|(20,628)|–|–|–|
|Mozart Piano|||||||
|Concerts|67,778|62,535|(186,120)|55,807|–|–|
|AAMplify|–|26,096|(10,096)|–|–|16,000|
|The Seasons|–|11,000|–|–|–|11,000|
|John R Murray|–|–|–|–|–|–|
|Concerts and|||||||
|Digital Support|||||||
|Fund|–|20,000|(20,000)|–|–|–|
|23/24 Concerts|||||||
|Fund|–|–|–|–|–|–|
|Weldon Recording|||||||
|Fund|–|–|–|–|–|–|
||---------------------------------|---------------------------------|---------------------------------|----------------------------|--------------|----------------------------|
||141,578|146,509|(277,094)|56,807|–|67,800|
||=================================|=================================|=================================|============================|==============|============================|
**- 28 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 August 2023**
## **23. Analysis of charitable funds** _**(continued)**_
The Strategic Recording Fund includes donations for future recording projects received in previous years.
The Castello Recording Fund is for a recording of Castello's _Sonate Concertate In Stil Moderno_ , _Libro Secondo_ .
The Creation was funding to support a performance and live-stream of Haydn's _The Creation_ in September 2021.
ACE Culture Recovery II was grant funding from Arts Council England, as part of Culture Recovery initiatives, to fund work on building our live-streaming audience.
Mozart Piano Concertos is funding for a major recording project to complete five discs of Mozart works for keyboard and orchestra and includes donations received from the 2021 Big Give ‘Complete the Cycle’ campaign.
AAMplify relates to funds received in support of our AAMplify educational initiative.
The Seasons relates to funds received to support a performance of Haydn's _The Seasons_ in October 2022.
John R Murray comprises a grant from the John R Murray Charitable Trust toward the costs of concerts throughout 2023 including the orchestra’s _AAMplify Audiences_ discount ticket scheme for students and under-35s.
The Concerts and Digital Support Fund relates to funds received in support of the costs of our own-promotion concerts.
The 23/24 Concerts Fund includes donations and grants received in support of concert costs across the orchestra’s 23/24 season.
The Weldon Recording Fund includes donations and grants received in support of the orchestra’s worldpremiere recording of John Weldon’s _The Judgment of Paris_ due for release on AAM Records in 24/25. This includes donations received from the 2022 Big Give ‘Rediscovering _The Judgment of Paris_ ’ campaign.
## **24. Analysis of net assets between funds**
||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|
||Funds|Funds|**2023**|
||£|£|**£**|
|Fixed Asset Investments|477,736|–|**477,736**|
|Current assets|414,411|101,457|**515,868**|
|Creditors less than 1 year|(112,199)|–|**(112,199)**|
||---------------------------------|---------------------------------|---------------------------------|
|**Net assets**|779,948|101,457|**881,405**|
||=================================|=================================|=================================|
||Unrestricted|Restricted|Total Funds|
||Funds|Funds|2022|
||£|£|£|
|Fixed Asset Investments|464,918|–|464,918|
|Current assets|400,172|67,800|467,972|
|Creditors less than 1 year|(42,749)|–|(42,749)|
||---------------------------------|----------------------------|---------------------------------|
|**Net assets**|822,341|67,800|890,141|
||=================================|============================|=================================|
**- 29 -**
## **The Academy of Ancient Music**
## **Company Limited by Guarantee**
**Notes to the Financial Statements** _**(continued)**_
**Year ended 31 August 2023**
|**25.**|**Analysis of changes in net debt**||||
|---|---|---|---|---|
|||||**At**|
|||At 1 Sep 2022|Cash flows|**31 Aug 2023**|
|||£|£|**£**|
||Cash at bank and in hand|279,820
=================================|7,275
========================|**287,095**
=================================|
**26. Related parties**
Donations received without conditions from related parties, including Trustees, in the year totalled £38,295 (2022: £37,450). There were no other related party transactions.
**- 30 -**