Company registration number: 04044936 Charity registration number: 1087445 NORTH MUSIC TRUST (A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 March 2024 North Music Trust Contents Reference and Administrative Details 1to2 Chairman's Statement Tru8tees' Report 4t018 Independent Auditors, Report 19to22 Consolidated St8tement of Financial Activities 23 Consolidated Balance Sheet 24 Company Balance Sheel 25 Consolidated Statement of Cash Flow8 26 Not•s to the Financial Statements 27to51 Comparative Consolidated Statement of Financial Activities 52 North Muslc Trust Reference and Administrative Details Trustees Sir Martin Narey, Chair Roy McEwan-Brown OBE, Vice-chair Michael Barker Darren Collins Emily Cox MBE Emyr Dance Subashis Das Gabriel Day Hilary Florek Jacqueline Hodgson Caroline Jackson (resigned 8 December 2023) Young Kim Joanna Lawson Ruth Lyon Jane Spiers Tony Wadsworth CBE Alfred Whillis S•cretary Lindsay Tuck Senlor Management Team Abigail Pogson, Managing Director Fraser Anderson, Executive Director Wendy Smrth, Creative Director Lindsay Tuck. Chief Operating Officer James Thoma8, Director of Royal Northern Sinfonia & Classical Programme Sara Venning, Dlrector of Flnanc• and People R•g18tor•d Offlco St Matys Square Gateshead Tyne & Wear NE8 2JR The company is incorporated in England & Wales. North Muslc Trust Reference and Administratlve Details Company Registratlon Numb•r 04044936 Charlty Reglstration Number 1087445 Sollcltors Muckle LLP Time Central 32 Gallowgate Newcastle Upon Tyne Tyne And Wear NE14BF Bankers Barclays Bank plc Percy Street Percy Street Newcastle upon Tyne NE14QL Audltor Azets Audit se￿ICe8 Bulm8n House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS North Music Trust Chairman's Statement This was a year of great highlights. In June we hosted the first-ever, weekend-long BBC Proms festival outside London in its 128-year history. More than 5,000 music lovers joined us at The Glasshouse - including 500 young audience members. Almost all of them were attending The Proms for the first time. There was also the small matter of starting the year as Sage Gateshead and finishing it as The Glasshouse International Centre for Music. Our new name VRS inspired by the idea that music lives and grows here. Because our communities told us that's why we matter. As Chair of The Glasshouse I've attended many wonderful perfomances. But none bettered our In Harmony Celebration Day at the end of March when 300 children supported by The Glasshouse. but who attend schools in deeply challenged areas on Tyneside, came together with the Royal Northern Sinfonia to play on our main stage. It's moments like this, witnessing first-hand the difference music eAn make in young people's lives, th8t bring horne just how special this organisation is, We continue our recovery. Generous support from Arts Council England and donors, particularfy from those in the North East, has meant that although we again ended the year in deficit, returning to a break-even position is moving closer. But as we move to balance the books, we are painfully aware that many who come to The Glasshouse are having to manage in a world of increasing costs. We are determined to do our part and shall continue to prioritise making it affordable to tske part in making music and to experience world class music. We're doing this not just on Tyneside but in the wider North East, particularly in Middlesbrough, Carlisle and Kend81 where we are delivering classical programmes led by Royal Northern Sinfonia. Chairing the charity running The Glasshouse (The Sage as was) has been one of the most satisfying roles in my working lrfe. But my term is up in a few months so this is my final Chails Statement. I have seen the organisation face great challenges and achieve great things. and l am confident that The Glasshouse, under the remarkable leadership of Managing Director Abigail Pogson, will continue to thrive. providing great entertainment, running the North East's only prof65sional orchestra and making music accessible to all irrespective of financial circumstances. And I will be a very regular visitorl Sir Martin Narey Trustee North Muslc Trust Trustees, Report Ttr￿ trustees of The Glasshouse are delighted to present our annual report together with the audited financial statements of the North Music Trust for the year 1 April 2023 to 31 March 2024. This report not only sen4es the purposes of both a trustees, report and a strategic and directors, report under company law. But also highlights our achievements and progress over the year. We confimi that our annual report and financial statements meet all current legal requirements, align wtth our governing docurnents, and adhere to the relevant standards for charity accounts in the UK and Ireland (FRS102). ObJectlve8 and actlvltles What18 Tha Gla88house? We're a home for INe music lovers oulstanding music. a place where absolutely anyone can enjoy and create Our Charltabl• obJactlv•8 aro: To promote and develop the enjoyment, practice and understanding of music. and the education of the public in the understanding and appreciation of the arts., The provision and maintenance of The Glasshouse International Centre for Music as a base for production, presentation, participation, enjoyment and understanding of music, and as a fully accessible centre in which the public may explore, understand and 6njoy them., To foster awareness, knowledge, understandlng, appreciation and participation in folk and traditional arts,. To bring together, maintain and promote musical ensembles including profession81 orchestras, paying particular regard to the repertoire for the chamber orchestra, and the traditional music of the North of England, the UK and beyond., To provide and promote educational courses, programmes and activitie8 in a broad range of music for the benefit of the people of, but not exclusively. the Northern region: To achieve excellence in its work locally, regionally, nationally and intemationally with all fom8 of music. Thb means that We bring some of the world's best music to people in the North East hosting topnotch gigs and concerts in our own venue, in communities across the region, and online. And we support people in the North East to create some of the world's best music - running classes for all ages and stages, nurturing new artists, and sharing our orchestra with audiences across the globe. Why does our work matter? Because music is mighty - but not everyone gets the same chances to benefit from it. Fn)m boosting confidence and concentration to banishing loneliness and stress, music makes a practical difference in people's lives every day. So we're making sure that anyone can grab hold of the power of music - no matter where you're from, how old you are, how much money you have, or what chaI￿ngeS you face. North Music Trust Trustees, Report Achlevem8nts and perfomiance Headllnes Music lives and grows here. The Glasshouse is a home for live music lovers - from diehard fans, aspiring artists, and tambourine-shaking toddlers to rock legends, pop icons. and our own acclaimed orchestra, Royal Northern Sinfonia. With top-notch gigs, concerts, and dasses every week in our horne at Gateshead Quays. out in communities across the North East, and online - anyone can join us in creating and celebrating outstanding music. And as a charity we're focused on making sure all of that 18 available to anyone no matter where you're from, how old you are, how much money you have, or what challenges you face. And while wa started 2023 as Sage Gateshead, In September we became The Glasshouse International Centre for Music. Our search for a new name started when it was announced that the arena and conference centre built next door would be called The Sage. Our new name was inspired by the idea that music lives and grows here. 8ecau8e our communrties told us that's why matter. You talked, we listened, and here we are. The Glasshouse International Centre for Music. New name, same great home for live music lovers Audlenc•8 and programme Numbers don't quite capture the magic of live music, but they do capture just how busy we've been. We put on 452 individual perfomance events and reached 0￿r 2.5 million people in person, via radio, and online. And to make sure tha doors are open to everyone, we gave out more than 25,000 free or heavily discounted tickets for locals who've never been before. young people, those out of work. and people facing hardship at Christmas, and we were part of Gatesh9ad Council's Warni Spaces neiwork. Envlronmental respon8lblllty The climate crisi8 is a critical threat to our audiences, artists, region, and planet. That's why ￿￿'ve made a pledge to be net-zero by 2030. We're steadily reducing our carbon emi88ion8 to a minimum by 2030. After that, we'll contribLrte to local rewilding projects that suck in carbon to offset whatever is left. So. when people corne to us, they'll know we're not just looking after them. but the Earth too. Our journey to net-zero involves Y￿rkIng with artists and audiences, as well as making changes to our building. It won't come as a surprise the building takes a lot to keep going, and at 20 years old. there's lot8 to upgrade. Plus, we're out on tour. and all that fuel adds up. Measuring and reporting on our carbon emi88ion8 since 2013 has helped us learn where to focus our efforts We encourage people attending concerts and events at our venue to use public transport for example with free Metro tickets for concert goers Our energy is generated round the comer at Gateshead District Energy Centre - it's more efficient than energy from the National Grid Joining with Music Declares Emergency is one way we're working hard to make change in the music sector We're taking part in local environmental action as part of the North East England Climate Coalition We have an Environmental Action Plan which acts as our annual to do list North Muslc Trust Trustees. Report By switching to electronic tickets, we'll save in the region of 20km of paper tickets every year We're working to reduce our orchestra's touring emissions by setting annual carbon budgets We're investing in the energy efficiency of our building and equipment so we're ready for the future. We've been replacing our lights with LED lighting which uses 80-90% less power than halogen bulbs. We replaced a grand total of 382 house lights, 70 downlights, and 78 emergency lights. And because music can change hearts and minds, we put music about the climate crisis on our stages. Kerrin Tatman premiered his post-apocalyptic tale, Requiem lor 8 Fading Wortd. And Fell Silent was Anna Hughes. exploration of the links between human activty and the natural world. Our greenhouse gas emissions and energy consumptlon for 2023124 wa8.. Greenhouse gas amissions for the year were 1.229 tonnes C02e' Total energy use was 3,324.952kWh split between 1,783,515kWh e￿CtrICIty, 1.481,500kWh heat, and 59,937kWh gas (not weather normalised) This has been calculated with help from our friends at Julie's Bicycle and their creative green toolkit. We can't measure everyrthing, but we do track energy and water usage, waste in our bins, and travel from our staff and audiences. Equallty. Dlvernlty and Incluslon 20 years ago, inclusion wa8 one of our foundlng principles, and it's still at the heart of everything we do. We want lots of voices to shine bright. This goes for our team, the artists we support and put on our stage8. and the music lovers who come to hear and make music with us. Knowing our communrties, we focus on making sure people from different backgrounds and with different {dis)abilities can join in. Because for lots of people monevs tight, or they need some extra help to get involved, and this should never Stop us from enjoying music, or making a career out of it. It matters who we see on our stages. Here are 80me of the things we have been doing this year. 12 up-and-coming famale conductors participated in our Woco sèssions. grounded in qualty rehearsal time with Royal Northern Sinfonia and mentoring for Alice Farnham. Recruiting Classical is growing in reach beyond string players. award winning and recognised as driving change in the UKS orchestral sector We kept up with our 2019 Keychange pledge, guaranteeing gender balance among headline artists. In our work supporting artists, vrfe focussed on musicians whose tunes might otherwise get overlooked. Including CRYSTALQUEER, a collaborative audiovisual commission from Liza Bec and CHAINES. And we made sure kxal people can live their best creative life. Young adults with additional needs and disabilities played. sang, and experimented with tech during their music weekly sessions. Over half of the young people on our Make Music programme received a bursary. And more than 25.000 ts'ckets were free or heavily discounted. 30 Young Programmers got involved in shaping what happens on stage. All this means that people from across the community can make The Glasshouse into their stage, have a say in what happens here, and live their version of creativity. North Music Trust Trustees. Report Review of actlvltle8 Music isn't just something that happens on our stages. It's in our audiences singing along, ivs in babies coming to their first classes, it's in the 100-year-old practicing her guitar, it's in the schools and in the parks. it's beaming digitally across the world. We don't just host music, we're the place for living This year we put on 260 glgs at The Glasshouse and 62 gigs out and about beyond The Glasshouse for a live audience of 250,000 and 2.5 million through broadcast and stream. We held 12,082 cours88, classes and workshops for all ages with attendance of over 100,000. We also supported 258 up and coming artists and worked with 50,000 young people in schools projects. Artistic Pmgramme In June, we hosted the first-ever, weekend-long BBC Proms fe8tival outside of London in rts history. Mor8 than 5.000 music lovers including 500 young people - joined us. Almost all of them were attending the Proms for the first time. From a pop-classical mash-up with Self Esteem and Royal Northern Sinfonia, to an all-Northern jazz group, and from spirituals to CBeebies. The critics k)ved it. our audiences raved about It. 'The festival go88 north for a euphoric weekend that moves from Brahm8 to barklng Ilke dogs... triumphant communal experience.. The Guardian T￿re were Sold￿Ut concerts acr08S the board - Beverley Knight brought the house down, living legend Graham Nash had us hooked from start to finish, and Kelis brought us all to the yard. Teaming up with our n8ighbours at GemArts allowed us to spotlight the best classical Indian music through River8Kle Ragas. 'It was an excellent glg, Incredible band. You should check them out. The Glasshouse is really th• best live music venue in the area and ￿'S not even close,, Lantems on The Lake audience member It was another Stellar year for Royal Northern Sinfonia, led wrth gusto by Principal Conductor Dinis Sousa. They played at home and away, in halls and in schools, from Kendal to South Korea, and beamed live into people's living rooms. 'Every orchestra wants to make its concerts stand out from the crowd, and on Friday night, the Roy81 Northern Sinfonia certainly succeeded." The Telegraph We are very proud that mor8 than 50% of Royal Northern Sinfonia gigs took place outside The Glasshouse. More than half of thi5 touring was to venues in post codes within the lowest 30Qfi of deprwation indices. Among this year's original commissions were Wander by Heloise Wemer for Royal Northern Sinfonia and RNS Moves and CRYSTALQUEER, a collaborative audiovisual commission from Liza Bec and CHAINES. We know that it matters who folk see on our stages so this year we continued to champion those underrepresented in the music industry. We've backed aspiring woman conductors alongside (xjr friends at the Royal Philharmonic Socw. Our commitment to gender balance through our Keychange pledge remains a top priority. Our Recruiting Classical project Working with BLIM and other UK orchestras has expanded to include wind players and won an award for its impact on the UKS orchestral sector. And 72% of those engaged with our artist development programme were from underrepresented groups. North Music Trust Trustees, Report Our concert series From The GlasstM)use brought audiences a garden of musical delights including homegrown talent, wildflowers from further afield, and new music. Among them, Ruth Lyon and Eliza Hull brought us their Access All Areas tour, celebrating disabled creatives. Through residencies, stage time, rehearsal space, financial support, expert advice and nebNorking opportunities, musicians were able to try new things. get gig ready. write new music, and connect wilh fellow musicians and industry contacts. Last yearfs Artists in Residence showcased the results of their hard work having created a living picture of life in the North through sound (Cetidh Mac) an incredible Requiem for a Fadin9 World combining contemporary classical music and graphic art (Kerrin Tatman), an intimate soundvrforld inspired by experiences of loneliness (Late Girl) and a reconnectton with the sound of nature itself (Anna Hughes). New Artists in restdence Hayden Thorpe and Faye Maccalman embarked on ambitious new projects and we can't wait to see what they come up with. Our programm• felt a burst of fresh energy, thanks to Young Programmers making cr•ative decisions behind the scenes. These 16- to 25-year-old local music lovers had a say in who's on our stages and how we do things at The Glasshouse, picking up new skills and new friends along the way. Make Mus 'It 18 the highlight of my week. The tutor 18 very patient with the cla88 and the sessions are always fun. It is great to learn something new and get those braincells working!. Samabanistas Participant 'The Glasshouse 18 a wonderful, welcomlng space that l enjoy spending time in. I like that partlcipation in all types of music is encouraged, with free performances on the concourse, and free tickets for some concerts., ParenVGu8rdian Stars don't just grace our stages, they grace our Mak8 Music Centre too. For example, Royal Northem Sinfonia teamed up wrth superstars Benjamin Grosvenor, Sheku Kanneh Mason and Hyeyoon Park. Over 3,000 people came to see them, and over 30 young people learned tricks of the trade in a work8hop with the stars. Young people took centre stage throughout the year. Young Sinft>nia created new music with composer and former member Anna Appleby. Jazz band Jambone lit up our concourse stage during BBC Proms. Quay Voices joined Royal Northern Sinfonia on stage to perform Home Alone. And 2,300 children from 60 local schaols sang their hearts out at our annual Sing. Adults got thelr weekly dose of stress busting music from ¢las8•s ranging from West African percussion to Elizabethan Madrigals., a continued range of live streamed clas8e8: and On Demand packages. We delivered over 12,000 Make Music sessions across the whole programme with a whopping 104,000 attendanc8S. Digital 'Wonderful concert. Living some distance away so much appreciate being able keep up with Royal Northern Sinfonia concerts on liveslream.. . Audience member Our The Glasshouse Player. is where we host livestreamed. hybrid and On Demand classes, from beginners. electric bass to an intro to music production. And for those who can't make it to our home. our livestreams are now free to watch on YouTube and reaching all corners of the Y￿r1d from Mexico to Taiwan- hola and li-ho. North Music Trust Trustees, Report We also teamed up with international media arts agency, Mediale. We co-produced work that explores how music, digital art and tech can present new ways of experiencing music. We commissioned visual artist Daisy Dickinson. who created three films set in and around the ancient sites and nature of the North East. And in the autumn. people could step inside Jazz Maze, the virtual reality world of composer. spoken word artist and jazz musician Marcus Joseph. His interactive. immersive comic book VR experience took audiences on an unforgettable journey. Perfomiance agalnst Strateglc Alms 1. Belng creatlve In the next flve years... With artists. musicians and other creative folk we'll share brilliant live music that stands out from the crowd. Audience8 will be entertained, enthralled and come fr￿n all walks of life. Pick up a gig guide or scroll the Royal Northern Sinfonia websit• and you'll see an international programme with a proud North East accent. This'll happen at home in The Glasshouse, across the North. further afield, and through a growing digital presence. Our famous music centre, with its fantastic facilities. music lovers and Igamers, and aw&inspiring artists will create a home for live music where we all feel welcome. A place where music lives and For thlg year and next we are focused on ... Getting more people to see live mustc on our stages. Building local support for Royal Northern Sinfonia's concerts across the North - part of our promise to bring music direct to communities. Working with a small number of biq-name artists to develop cracking new collaborations 2. Supportlng breakthrough artl8t8 and all mu81¢ makern In the next fiva y•ar8... Whatever you want to do in music The Glasshouse will help rnake it happen. For thls year and next we are focused on ... Making it easier for peopl8 to make music with the latest digital tech, with some cracking new partners like Mediale Offering friendship and support to artists who have extra challenges placed on their path. like women conductors (still an all-too-rare sight) and artists struggling to make ends meet. 3. The Glasshousè èxperlenco for mu81c lovern In the next five years.. We're savvy business folk with a keen eye for commercial opportunities. This in the service of bringing everyone - whatever their background or income - the joy and nourishment of live music. North Music Trust Trustees. Report For this year and next we are focused on . Getting as many people coming to live music as we did before the pandemic Asking everyone to champion and support colleagues who are making the sale and tell our story - we're one voice Putting on more shows to appeal to people who are a bit younger 4. Worklng tog•th•r In the next flve yearn... We'll work together to live our values and care for our culture. This'll help us be brilliant at serving audiences. We'll also create routes into careers in the cultural Industries. For th18 year and next w• are focused on . stsrting a new project linking our valu8$, behaviours, audience experience and organisalion design - we're currently calling these things 'The Glasshouse World, Updating some of our HR systems 6. Bulldlng to support our ml88lon In the next flvo y•ars.,. We'll give our 20-year-old building and facilitl6S Bome TLC. ensuring we can keep our doors open and stages humming with live music. We'll also get fully back on our feet after the pandemic, creating as much financial and human value from music as possible. For thls yoar and noxt wo ar• focused on ... Working as one team to get a8 much value as possible from our event spaces Taking our joyful new brand and ensuring this is felt by audiences in all their interactions wlth us 6, Telllng the world our story In the noxt five years.. We'll use our new brand to shout about the difference music can make to people's lives and why this is important. For thls year and next we are focu8•d on ... Making the case for culture to people who decide or influence our country's and community's priorities - all of us can do something to help Ensuring as many as possib￿ are aware of our new name. and building up the brand so people feel good about it 10 North Music Trust Trustees. Report 7. Havlng money to spend where It matters In tho next five years... We'll be financially sustainable, maximising the money we get from our live events, while also unearthing new sources of bankable income. For th58 y•ar and next we are focused on ... Building the fundraising team. Planning an expansion of our commercial company's plans to generate income that supports our charity Hitting income targets for the yearl Duty to promots the 8ucce88 of the company to achleve Its charltabl• purposes The trustees believe, both individually and as a group, that they have acted in good faith and in a way that they believe will best promote the success of the chanty for the benefit of all its members. They have considered soveral important factors, including: The long-temi con8equence8 of any decision, discussed In th• Risk Management Section on page 14. The interests of the charity's employees, detailed in the Equality, Diversity, and Inclusion section on page 7 and the Working Together section on page 9. The importance of fostering good relationships wrth third-party stakeholders such as funders. audiences, artists, partner organizations. statutory bodies, and the government, which is h1gh1￿ht8d throughout the report. The impact of the charity'8 operatlon$ on the community and the environment, 8peclfically ¢ov•r•d in the Environmental Responsiblllty section on page 6 and the Public Benefit Section on page 18, The importance of maintaining a reputation for high standards of business conduct. as discussed in the Financial Review. The n8ed to act fairly among all members of the community, ensuring everyone is fully represented. In considering these factors, the trustees aim to ensure the charity operates in a way that benefrts everyone involved. 11 North Music Trust Trustees. Report Flnanclal revlew Flnanclal perfomianco We make a difference in our communities through music but we're also financially savvy. We don't rely on one income source to support our charitable work - instead we balance lots of different things. We make money from selling tickets, food and bevqies. and from hosting conferences and events. We get investment from government, and support from businesses, trusts and foundations and people all over the region - and beyond In 2023124 21.10A of our income is from grants, philanthropy and endowments, 23.8% from public sources. 37.90A from earned income and 17.2¥0 from trading. Fundra181ng Fundraising is a vital part of our financial mix. As we navigate rising costs our communities and audiences are also facing tough challenges. This means that our income from tickets. and our food and drinks offer is considerably lower than it was. Philanthropic contributions mean we can continue our charitable work for children, young peopl8, artists and local communities. We are grateful that Art8 Council England and Gatèshead Council (our two statutory funder8), have maintained their grant$ to us despite the Strains on their own budget8. We want to sincerely thank our Founding Patrons, Founding Endowment Donors, Friends and Champions of The Glasshouse, Friends, Champions and Principal Partners of Royal Northern Sinfonia, as VKII as everybody who donated online. Every donation from individuals, institutions and companies helps us provide world-cla88 music and life was recorded for the year after the application of Orchestra Tax relief. Consolldat•d balanee sheet Fixed 8S8et8 Ttr* Trust invested £0.7m (2022123.. £0.9m) in fixed assets and improvements to the building during the year. Unrnstncted gener818nd designated funds Consolidated unrestricted r￿orv¢S decreased during the year down to a surplus of £6.2m (2022123.. surplus of £6.6m). Restricted lunds Consolidated restricted reserve8 decreased during the year to £0.58m {2022123: £0.59m). Endowment funds Ttr￿ charrty has two sources of endowment income.. A fund of £11.7m {2022123: £11.3m) which is held off balance sheet on behalf of North Music Trust by the Communty Foundation. An annual grant is drawn down from the Community Foundation proportional to the Trust's interest in the fund and this income is included within the Trust's voluntary income for the year. North Music Trust also has rts own endowment fund held on its balance sheet at a value of £7.5m (2022123.. £7.2m). £5.5m of this fund is invested and managed by Rathbones, while the remaining £2m is held in a high interest Notice Account at Barclays. The fund y￿S created from £4m in donations to The Glasshouse and £2m in matched funding from Arts Council England via its Catalyst fund. An annual contribution from the investment income will be applied to each year's results in perpetuity. 13 North Music Trust Trustees. Report Investment management Our endovmient fund at North Music Trust is managed by Rathbone Investment Management Limited. We're aiming for a balanced approach, seeking both income and capital grovrth, with a medium risk profile to achieve returns above inflation over time. We also have some important ethical investrnent rules.. No direct investments in tobacco, pornography, gambling, environmental damage. high-interest unsecured loans. or any companies supporting oppressive regimes. Golng concern We understand that times are tough, and things change quickly. That's why we regularly review our risks with a strategic risk register to stay on top of everything. We're happy to report that all our current risks are well within manageable limits. Our trustees have thoroughly checked, and theYre confident that we have the resources to keep going strong for the foreseeable future. So, we're continuing with our current plans and preparing our financial statements accordingly. You can find more details about this in our accounting policies. Rl8k management Our trustees keep a c108e eye on our progress by reviewing our busine88 plan every year. To keep things running Smoothly, our directors have created a risk management strategy that include8'. An annual review of potential risks to the charity Setting up systems and procedures to reduce those rlsks Implementing procedures to minimize the impact if any risks do occur The maln challenges we face at The Glasshouse are th• speed of audience recovery, the broader economic ¢limat8. and the development happening next door. Re3erve8 poIIcy The trustees have agreed that the level of free reserrfes (that is funds not tied up in fixed assets or designated and restricted funds) required to sustain the Trust's operations will be in the region of £1,000,000. After taking into account the group's unrestricted funds not tied up in fixed assets, free reserves as at 31 March 2024 are £1.6m12022123.' £2.1m). Therefore, fre6 reserves remain above the level agreed by trustees but consolidated unrestricted reserves decreased by £0.5m during the year to £1.6m. Structurn, governance and management Governance North Music Trust is a charitable company limrted by guarantee and does not have share capital. The charity is governed by its memorandum and articles of association last amended on 2110112009. The trustees agree to contribute £1 in the event of the charty winding up. 14 North Music Trust Trustees. Report Organisational structure and declslon maklng pollcles To help us run smoothly, our Board has set up four subcommittees.. Finance & Audit, Investment, People, and Programme & Development. These subcommittees, made up of Board members. allow for more regular and detailed involvement from nonexecutives and independent representatives than would be possible in full Board meetings. Since North Music Trust was established in 2000, the Board and its subcornmittees have played an active role in shaping our goals, policies, strategies, and procedures. They're involved in any major decisions that fall outside our approved framework. Board recruitment is open. with opportunities 8dvertised, and candidates go through a formal interview process. New trustees get an induction, meet key staff, explore all our activities. and learn about our policies and responsibilities. The Board appoints the Managing Director, who serves as our Chief Executive, and other key members of the Senior Management Tearn to carry out our work within aims policies and procedures approved by the board. The Chair reviews the Managing Directorfs pertormance against set targets annually. following our organisation-wide perfomiance review process. Our Chair, committee chairs, and Board members often consult with the Senior Management Team on policy development and specific issues or opportunities. They also meet with SMT periodically to discuss progress, p18ns. and any significant current concerns. Our trustees are confident that our governance and management structures are welksuited to the needs of our diverse, large, and growing organisation. Pay pollcy for k•y management personnel Pay levels for all Staff including senior staff are set in a banding system and are benchmarked against peer organisatlons as part of the Newcastle Gateshead Cultural Venues group, Related party relatlonshlp8 The trust has a close relationship with Arts Council England, North East and Gateshead Council, both of which provide funding to enable the charity to carry out its charitable objectives. Dlsabled persons We welcome job applications from people who identify as Dlde8f or disabled. focusing on their abilities. If any staff member becomes disabled, we make every effort to continue their employment and provide the necessary training. Our policy ensures that training, career development, and promotion opportunities for disabled employees are as similar as possible to those for other employees. 15 North Music Trust Trustees, Report Publlc bèneflt North Music Trust is a company limited by guarantee and a registered charity which operates under the name North Music Trust trading as The Glasshouse International Centre for Music. It was founded in 2000 to expand musical horizons of audience, artists, students and staff through musical discovery- seeking to make connections betrween performance, education and participation. It has a particular objective of serving the North East in which it is based. This objective is set out in its memorandum and articles of association and forms the basis upon which the charity's vision, mission and aims are formulated. The directors have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to guidance published by the Charity Commission and are satisfied that the charity's activities are faithful to the charl￿S objectives and are for public benefit. We bring some of the v￿r1d'S best music to people in the North East hosting top-notch gigs and concerts in our own venue, in communities across the region, and online. And we support people in the North East to create some of the world's best music - running classes for all ages and stages, nurturing new artists, and sharing our orchestra with audiences across the globe. We're also focusing on making events accessible to everyon&, We're carefully planning tick•t prices and offering schemes to allow first-time attendees to join events or project8 for free. We aim to offer a range of ticket prices to ensure affordability for all, and bursaries are available for some Mako Mu8rc projects. Participants in Make Music can also enjoy special ticket offers for performances, Accessibilty has always been important to us. The pandemic highlighted the need for streamed live perfomiances and online18sson8, which have been a hit with our audiences. We're continuing to offer hybrid models to ensure everyone can participate, whether in p8r8on or online Plans for futur• p•rlod* - Onto our nexi two decades The North East has a lot going for it a boomlng Premier League club, too many epic bridges to count, and hard-working. dead canny folk. But money's tight and k)ts of people are strugglin9 With their health. Too many children are having a tough time in ￿h0O1, while funding 13 dwindling. And young people feel they need to move away tc get ahead in lrfe. There's no quick fix. There's no simple answer. But a thriving music centre is a vital part of the jigsaw. Because we give children's education a much-needed boost. Because we help locals live happier and healthier lives. Because we encourage people to dream big. And because as an international centre for music, we get people raving about the region and attract investment. A laser-sharp focus We know what we need to do. Our next era will put music at the heart of our region and its culture. It will involve.. Royal Northern Sinfonia starting its most artistically ambitious chapter yet. Wé're talking vibrant community projects. searingly good perft)rmances, strong connections with people and places across the region, international touring, and brave leadership. New support for young artists, enabling the next generation of musicians from our region to thrive. Being a place where everyone can experience brilliant Mus￿, whatever their financial means. 16 North Music Trust Trustees. Report Achieving net zero by 2030. Our region blossoming as a music hot spot, drawing in visitors, audiences, and artists Auditor The auditor, Azets, has indicated their willingness to continue in office. The designated trustees will propose a motion reappointing the auditor at a meeting of the trustees. 8tatam•nt of trustees. responslbllltle8 The tru8tee5 (who are also the directors of North Music Trust for the purposes of company law) are responsible for preparing the trustees, report and the financial statement5 in accordance wilh applicable law and United Kingdom Accounting Stsndards {United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the parent charitable company and the group and of the incoming resources and application of resources, including its income and expenditure, of th• charitable group for that period, In preparing these financial statement8, the trustees are requir•d to: select suitable accounting policie8 and apply them conslstently,, observe the methods and principles In the Charities SORP., make judgement8 and estimate8 that are rea80nable and prudent., State whether applicable accounting standards, comprising FRS 102 have been followed. Subject to any material departures disclosed and explained in the financial statements., and prepare the financial 8tatement8 on the going concern basi8 unle88 it 1$ Inappropriate to presume that the parent charitable company will continue in bu$in•ss. The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the parent charitable company and the group 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 parent charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's v￿bSIte. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdiction8. Dlsclosure of Informatlon to audltor Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the companys auditor is aware of that information. The trustees confirm that there is no relevant infomiation that they know of and of which they know the auditor is unaware. 17 North Music Trust Trustees. Report The annual report was approved by the trustees of the company on 13. - behalf by: 1£: and signed on its Sir Martin Narey Tmstee 18 North Music Trust Independent Auditor's Report to the Members of North Music Trust Opinion We have audited the financial statements of North Music Trust (the 'charitable parent company) and its subsidiaries (the 'group') for the year ended 31 March 2024, which comprise the Consoltdated Statement of Financial Activities, Consolidated Balance Sheet, Company Balance Sheet. ConsolKlated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of sunificant accounkn'ng policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicable law (Uniied Kingdom Generally Accepted Accounting Practice). In our opinion the financial Statements: give 8 true and fair view of the state of the group's and parent company's affairs as at 31 March 2024 and of the group's incoming resources and application of resources, including its income and expendrture for the year then ended; have been properly prepared in accordance with United Kingdom G8n8rally Accepted Accounting Practice; and have been prepared in accordance with the requirement8 of the Companies Act 2006. 8asl8 for oplnlon 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 audrtor responsibilities for the audit of the financial ststements section of our report. We are independent of the group 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 responsibilitie8 in accordance with the8e requirements. We believe that Ihe audit evidence we have obtained 18 sufficient and appropriate to provide a ba818 for our opinion. Conclu8lon8 rolatlng to golng concorn In auditing th8 financial stat8m8nts, we hav8 concluded that the trustees use of the going concem 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 group's ability to continue as a going concern for a period of at least twelve months from when the financial statements were authorised for issue. Our responsibilitie8 and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other Infomiatlon The trustees are responsible for the other information. The other information comprises the infomation included in the annual report, other than the financial statements and our auditofs report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent othepNise explicitly stated in our report, vrfe do not express any fomi 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 othenvise appear5 to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detemiine 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 arè required to report that fact. 19 North Music Trust Independent Auditor's Report to the Members of North Music Trust We have nothing to report in this regard. Oplnlon on other matter 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 financial year for which the financial ststements are prepared is consistent with the financial statements., and the Trustees Report as been prepared in accordance with applicable legal requirements. Matters on whlch wa are rnqulred to report by exceptlon In the light of our knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Report. We hw4e nothing to report in respect of the following matters where th8 Companies Act 2006 requires U8 to report to you if, in our opinion: adequate accounting records have not been kept by the parent charitable company, or ratums adequate for our audit have not been received frcm branches not visited by u8,. or the parent charitsblo company financial St￿ementS aro not In agreament wlth the accountlng records and returns; or certain di8closures of trustees remuneration specified by law are not made,. or we have not received all the information and explanations we require for our audit. Responslbllltles of trustees AS explained more fully in the Statement of trustees, respon8ibiliti88 {88t out on page 17), the trustee8 ar6 responsible for the preparation of the financial statements and for being satisfied that they give 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 frcffn material mi88tstement, whether due to fraud or error. In preparing the financlal statements, the trustees are responsible for assessing the company's abilty 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 company or to cease operations, or have no realistic alternative but to do so. Audltor r•spon8lbllltlas for the audlt of the flnanclal 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed bebw.. Enquiries with management about any known or suspected instances of non 265,262 551,078 248,642 (91,002) (1,479,861) 16,620 Net movement in funds (376,818) (16,620) 302,436 191,002) (1,479,861) Reconclllatlon of funds Total funds brought fO￿ard 6,591,425 594,162 7,245,084 14,430,671 15.910.532 Total fund8 carried for¥vard 26 6,214,607 577,542 7.547,520 14,339,669 14.430.671 All of the group's activities derive from continulng operations during the above two periods. The funds breakdown for 2023 is shown in note 26. 23 North Music Trust (Registration number: 04044936) Consolidated Balance Sheet as at 31 March 2024 2024 2023 Note Flxed assets Tangible assets Inv8Stments 4,710,309 5,547,520 4,556,786 5,245,084 9,801,870 17 10,257,829 Current assets Stocks Debtors Cash at bank and in hand 18 19 20 43,910 3,177.266 7,967,612 11,188,788 3.926,471 55,419 2,273.259 .172.144 11,500,822 Crndltorn: Amounts falllng due wtthln one year Net curr•nt a88et8 21 3,674,636 7,262,317 7,826,186 Total assets less current Ilabllltlwa 17.520.146 17,628,056 3,197,385 Cr•dltor8: Amounts lalllng due after more than on• y•ar 22 Net assets 3,180,477 14,339.669 14,430,671 Funds of th• group: Endowment 7,547,520 7,245,084 Restrlcted 577,542 594.162 Unr88trlcted Income funds General fund8 6,214,607 14.339,669 6,591,425 Total fund9 14,430,671 The financial statement8 on pages 23 to 52 were approved by the trustee8, and authorised for issue on ..l3.-.5.£...*.. and signed on their behalf by.. Sir Martin Nar Trustee 24 North Music Trust (Registration number: 04044936) Company Balance Sheet as at 31 March 2024 2024 2023 Note Flxed assets Tangible assets Invesiments 16 17 4,648,210 5.547,522 10,195,732 4,549,947 5,245,086 9,795,033 Current assets Debtors Cash at bank and in hand 19 20 692,858 6,796,963 856,059 7.929.568 7,489,821 8,785,627 Credltor3: Amounts falllng due wlthln one year Net current assets 21 3,447,129 3,308,173 4,042,692 5,477,454 Total assets le88 current Ilabllltle8 14,238,424 15,272,487 Credltorn: Amounts falllng due after more than one year 22 N•t assets 3,180,477 3,197,385 12.075.102 11,057.947 Funds of th• company: Endowment 7,547,520 7,245,084 Rastrlctad 577,542 594,162 Unrestrlcted Income funds Unrestricted funds 2,932,885 11,057,947 4,235,856 Total fund• 26 12,075,102 The financial statements on page8 23 10 52 were approved by the trustee8, and authorised for i8sue on ...Ilr!.è.44fr.. and signed on their behalf by: Sir Martin Narey Trustee 25 North Music Trust Consolidated Statement of Cash Flows for the Year Ended 31 March 2024 2024 2023 Not• Cash flows from operatlng actlvltles Net cash expenditure (91.002) (1.479,861) Adjustments to cash flows from non-cash Itam8 Depreciation Inveslment income Interest payable Revaluation of investments 546,949 (490,486) 64,777 333,906 (303,668) 611,485 (207,022) 63,438 280,316 (731,644) Worklng capltal adjustments Decrea8el(increase) In siocks Increase In debtors Increasel{decrea88) in creditors Net cash flows from operating activities Cagh flow8 from Inv08tlng acllvltles Acquisitions of tsngible assets Proceeds from sale of investments Transfer from Investmen18 Dividend income Purchase of investments 18 19 21 11,509 (904,007) 249.329 (4,530) (829,196) 106,800 946,837 1,672.170 {700,472) 1,184,608 (822,631) 872.088 2,000,000 207.022 841,169 490,486 1,153,138 Net cash flows from investing activitie8 Cash flows from flnanclng actlvltl•g Interest payable Movement on other loans 178,516 1,415,310 (64,777) 14,402 (63,438) 15,782 Net cash flows from financing activities Net decrease in ca8h and cash equivalents Cash and cash equivalents at 1 April Cash and cash equivalents at 31 March 79,179 79,220 (1,204,532) 9,172,144 7.967,612 (336.080) 9,508,224 9,172,144 All of the cash flows are derived from continuing operations during the above Nvo periods. 26 North Music Trust Notes to the Financial Statements for the Year Ended 31 March 2024 1 Company status The company is limited by guarantee, incorporated in England & Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 tOW8rds the assets of the company in the event of liquidation. The address of its registered office is.. St Mar￿S Square, Gateshead, Tyne & Wear, NE8 2JR The chariiy meets the definition of a public benefrt entity under FRS102. 2 Accountlng pollcles Summary of slgnlflcant accountlng pollcles and k•y accountlng estlmates The principal accounting policies applted in the preparation of these financial statements are Set out below. These policies have been con8lStently applied to all the years pregented, unless oth8rwigé stated. Stat•ment of compllanc• The financial statements have been prepared in accordance with Accountlng and Reporting by Charrties.. Statement of Recommended Practice (applicable to charities preparing thelr accounts In accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)). Ihe Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006, Basls of preparatlon North Music Trust meets the definition of a public benefit entty under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherNise stated in the re18vant accounting policy notes. 8a818 of con8011datlon The consolidated financlal statements ¢on$olldate th• Ilnanci81 statements of the company and it8 subsidiary undertakings drawn up to 31 March 2024. No statement of financial activilies is presented for the charty as permitted by section 408 of the Companies Act 2006. The company made a deficit afler tax for the financial year of £1,017,086 (2023 deficit of £2,796,207). A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefi'ts from its activities. Inter-company transactions, balances and unrealised gains on transactions between the charty and its subsidiaries, which are related parties, are eliminated in full. Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group's equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholderfs share of changes in equty since the date of the combination. Total comprehensive income is attributed to non-controlling interests even rf this results in the non-controlling interests having a deficit balance. 27 North Music Trust Notes to the Financial Statements for the Year Ended 31 March 2024 Going conc•rn The financial statements have been prepared on a going concern basis. The charity meets ts day to day working capital requiremenls through cash generated from operations. The Charitable company's forecasts and projections for the nexi 12 months show thal the charty will be able to continue in operational existence for that period. The charity has strong positive cash and investment balances alongside a programme of activity for the year that reflects our commitments to our core funder, our strategic direction, and a realistic view on audience numbers. Based on these factors set out above, the trustees believe that it remains appropriaie to prepare the financial statements on a going concern basis. Estlmatlon un¢•rtalnty and Judg•monts The preparation of the financial statements requires management to make judgements. e8timate8 and a8sumptions that affect the amounts reported, A group subsidiary claims Orchestra Tax Relief. At the year end included within accrued income are amounts claimed from HMRC for prior years and current years which we are awaiting payment. Until the claim is processed, the debtor reflects the best estimate of the value of the claim. Income and endowments All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of the income receivable c8n be measured reliably. Donatlons and legacles Income from donations and legacies include8 spon8or8hip8 and donations and grants that provide core funding or are of a general nature. Income is recognised where there Is entitlement, certainly of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when the donor Specifies that the grant or donation relates to future accounting periods. Grnnts rncelvabl• Orchestra tax relief income is recognised based on a prudent estimate of the amount of qualifying expenditure and appl5fjng the repayment rates set out in current HMRC legislation. Other grants are recognised at the earliest opportunity, unless there are any performance conditions preventing recognrtion. 28 North Music Trust Notes to the Financial Statements for the Year Ended 31 March 2024 Gifts In klnd Donated service8 or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. On receipt. donated professional services and donated facilities are recognised on the basis of the value of the gift to the company which is the amount the company would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt, or capitalised as a fixed asset if the goods are to be retained for future benefits. North Music Tru8t18ases the premises from which it operates from Gateshead Metropolitan Borough Council at a peppercorn rent. It is not considered possible to determine the market value of the donated facility and therefore neither income nor the corresponding rental charge have been recognised in the statement of financial activities. Glft ald Incoming resources from tax reclaims are included in the Stat•m•nt of Finan¢lal Actlvities at the 8ame time as the gfft to which they relate, Other tradlng actlvltle$ Income generated from commercial trading is recognised a8 earned as the related goods and sepiices are provided. Investment Incomo Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity,. this is normally upon notification of the interest paid or payable by th6 bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. Charltable actlvld08 Performance income In¢lud•s box office sales, engagement Income, hall hire and other perfomian¢8 related income. It is recognised as earned (as the related goods or serrfices are provided). Grant income included in this category provides funding to support performance activities and is recognised where there 18 entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Tickets are sold through the box office for three different event categories in terms of income recognition,. Self-Promotions, Co-Promotions and Hall Hires. Where the event is a Self-Promotion, ticket sales are recognised gross in full within revenue. Where the evenl is a Co-Promotion, a portion of the ticket income is recognised within revenue,. where the event is a Hall Hire, any income frorn ticket sales belongs to th8 promoter and thus does not fom part of the revenue figure. Education income includes education fees from music lessons and school visits and other education related income. It is recognised as earned (as the related services are provided). Grant income included in this category provides funding to support education activities and is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliabilty. Charitable activity income is deferred when box office sales or bookings are received or invoiced in advance of the performances or event to which they relate or when the donor specifies that the grant or donation relates to future accounting periods. 29 North Music Trust Notes to the Financial Statements for the Year Ended 31 March 2024 Expenditure All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are albcated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent. and depreciation charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs. Ralslng funds These are costs incurred in attracting voluntary income, the management of invastments and those incurred in trading activities that raise fund8. Charftable actlvltles Expenditure on charitable activities include8 Costs associated with the staging of concerts, musical performances and educational programme8 and includes both the direct Costs and support Costs relating to these activities. Support C08ts Support cost8 include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example. allocating propety costs by floor areas, or per capita. staff costs by the time spent and other costs by their usage. Governance costs These include the costs attributable to the company's compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses. Taxatlon The company is considered to P88S the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Company is potentially exempt from taxation in respect of income or capital gains received within categorie3 covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Intanglble assets Intangible assets are initially recognised at cost and are subsequently measured at cost less accumulated arnortisation. Amortlsatlon Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows.. Asset class Soffvrfare and website development Amortlsatlon method and rnte 3 years straight line 30 North Music Trust Notes to the Financial Statements for the Year Ended 31 March 2024 Tangible fixed assets Individual langible fixed assets costing £5,000 or more are capitalised. Fixed assets are initially measured at cost and subsequently measured at cost less accumulated depreciation. Depreciation is calculated so as to write off the cost of an asset, net of anticipated disposal proceeds. Depreclatlon and amortlsatlon Depreciation is not charged on stringed instruments as under normal circumstances the residual values are considered to be greater than cost. However, the carrying values of 8tringed instruments are reviewed for impaiment rf events or changes in circumstances indicate the carrying value may not be recoverable. Subsequent costs, including replacement parts, are capitalised only when it is probable that such costs will generate future economic benefits. Any replaced parts or remaining carrying amounts are then derecognised. All other costs of repairs and maintenance are charged to the statement of financial activities. Depreciation 18 provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows: Asset class Furniture, fixtures and fittings Music & Instruments Computer Equipment Technical Equipment Leasehold property improvements Forestage lift Kitchen Equipment Car park equipment Flx•d a8S•t Investments The group's endowment fund investments are classified as financial instruments and accounted for in accordance with the accounting policy at fair value through the statement of financial activities. D•prèelatlon méthod and rate 3-10 years straight line 10 years straight line 3 years straight line 5 years straight line 10 years straight line 50 years straight line 3-5 years straight line 5 years Stra￿ht line In the separate accounts of the charity, interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impaiment losses. Interests in subsidiaries are assessed for impairment at each reporting date. Any impaimient losses are recognised immediately in expenditure. Stock Stocks are valued on a first in first out basis and stated at the lower of cost and estimated selling prtce less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condits'on. Stock held for distribution at no or nominal consideration are measured at cost, adjusted where applicable for any loss of service potential. Trade debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 31 North Muslc Trust Notes to the Financial Statements for the Year Ended 31 March 2024 Cash and cash equlvalents Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. Trade credltors Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company ankn'cipates it will pay to settle the debt or the amount it has réceived as advanced payments for the goods or services it must provide. Borrowlng8 Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference betrween the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expanse is recognised on the basis of the effectbve interest method and 18 included in interest payablè and similar charges. Borrowings are classified as current liabilities unless the company has an uncondltlonal rl9ht to defer settlement of the liability for at least hvelve month8 after the reporting date, For•lgn •xchange Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date Non4nonetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction. All transaction differences are taken to the Statement of financial activities, except to the exient that they relata to gains or losses on non4nonetary items recognised in other comprehensive income, when the related translation gain or loss is al80 recognised in other comprehensive income. Fund structure Designated funds are unrestricted funds eamiarked for specrfic purpose by the directors. They include amounts held as fixed assets purchased with specific capital funding secured. The Trust has a number of restricted income and capital funds to account for situations where a donor requires that a donation must be spent on a particular purpose or where funds have been raised for a specific purpose. The aim and use of each restricted fund is set out in the notes. The pemanent endowment fund is treated by the directors as a bng term fund. All other funds are unrestricted income funds, receivable or generated ft)r the objects of the charity without further specified purpose. 32 North Music Trust Notes to the Financial Statements for the Year Ended 31 March 2024 Penslons and other post retlrement obligations The group operates a defined contribution pension scheme which is a pension plan under whtch fixed contribukn'ons are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Conlributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment. Short-term benefits Short-term benefits, including holiday pay and other similar non4nonetary benefits. are recognised as an expense in the period in which the service is received. Flnanclal Instruments Classlflcatlon The group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade, intercompany and other accounts receivable and payable, cash and bank balance8 and loans from related parties. All 8uch instruments are initially reco9ni8ed at transaction price, unless the arrangement constitute8 a financing transaction, in which case the transadion is measured at the present value of the future receipts discounted at a market rate of interest. All financial instruments are subsequently carried at amortised cost using the effective interest method, 3 Incom• from donatlon8 and legacles Unrestrfcted Total 2024 Total 2023 General Restrl¢t•d Arts Council England - core grant GMBC - core grant Community Foundation - The Glasshouse Fund Other income from don8tion$ and legacies 3.576,745 187,534 3.576,745 187,534 3,578,043 187,534 646,424 646,424 662.961 1,717,895 483,851 2,201,746 6,612,449 1,479,980 5,908,518 6,128,598 483,851 33 North Muslc Trust Notes to the Financial Statements for the Year Ended 31 March 2024 North Music Trust is the sole beneficiary of The Glasshouse International Centre for Music Fund, which is a restricted fund at the Community Foundation serving Tyne & Wear and Northumberfand {registered charity number 700510). This fund was created from donations and sponsorship monies given to support the V￿rk of The Glasshouse International Centre for Music, some of which resulted in naming privileges to parts of the The Glasshouse building and related facilities. From this fund, North Music Trust derived income totalling £646,424 (2023.. £662,961) in the year. 4 Incom• from charltablo actlvltles Unre8trlcted funds General Total 2024 Income from performance programming and Make Music activities 6,000,972 6,000,972 Unrestrlcted fund8 General Total 2023 Income from perfomiance programming and Make Mu8iC activities 4,855,874 4,855,674 6 Income from other tradlng actlvltles Unrn8trlcted Total 2024 Total 2023 General Conferences and events Catering income Car park income Retail sales 824,138 1,715,668 139,415 46,720 2.725,941 824,138 1.715,668 139,415 46,720 2,725,941 602,288 1,126,875 151.159 13.521 1,893,843 6 Investment Income Unrestrlcted funds General Endowment funds Permanont Total 2024 Total 2023 Income frorn dividends; Dividends re￿1vable from other listed investments Interest receivable and similar income., Interest receivable on bank deposits 243,335 243,335 161,994 247,151 247,151 45,028 247,151 243,335 490,486 207,022 34 North Music Trust Notes to the Financial Statements for the Year Ended 31 March 2024 7 Expendlture on ralslng funds - fundralslng Allocated support costs Total 2024 Total 2023 Dlrect costs Costs of generating donations and legacies Investment management costs 189,875 26,536 155,091 344,966 26,536 260,733 25,766 216,411 155,091 371,502 286,499 8 Expondlture on ral8lng fund8- tradlng actlvltle8 Unro$trlct•d funds General Total 2024 Total 2023 Note Other resources expended Allocated support costs 1.764.704 387.728 1,764.704 387.728 1.049,403 310,822 10 2,152,432 2,152,432 1.360,225 9 Exp•ndlturo on ¢harltabl• actlvltle$ Unre8trlctsd funds General Rosirfcted funds Total 2024 Provision of charitable activities 13,247,344 483,851 13,731,195 Unrestrlctod fund8 General Restrlcted fund$ Total 2023 Provision of charitable activitle8 11,785,153 632,725 12,417,878 35 North Music Trust Notes to the Financial Statements for the Year Ended 31 March 2024 Activity undertaken dlrectly A¢tivity support osts 2024 2023 Performance Programming - classical Performance Programming - popular and contemporary Make Music - Young People Programme Make Music- Public Engagement Programme Other costs 3,918,153 2,820,284 6,738,437 5,878,784 932,503 2,820,284 3,752,787 3.376,300 1,438,263 1,183,444 2.621,707 2.576.879 167,758 62,778 6,519,455 387,728 555,486 62,778 13,731.195 557,415 28,500 12,417.878 7,211,740 10 Analy816 of governance and support CO8t8 Cost of Ralslng funds Trndlng Actlvltles Charftablo Actlvltl•8 Total 2023 Building services Depreciation Direction and policy Finance and audit 40,784 10,686 14,077 101,980 26,714 35,198 1,898,452 2,039,196 496.879 534,279 654,688 703,963 1,969,459 674.202 734.190 10,120 5,237 7,528 11,538 28,352 25,300 13,091 18,819 28,844 70,879 470,574 505,994 243,498 261,828 350,038 376,385 536,501 576,883 1,318,351 1,417,582 485,951 322,881 359.458 502.823 1,153,137 People Team Irrecoverable VAT Marketing and CE Strategy & external relations Technology 13.934 12,835 155.091 34,835 32,088 387,728 647,924 696,693 596,835 641,758 7,211,740 7.754,559 647,197 4,630 6,853,928 36 North Muslc Trust Notes to the Financial Statements for the Year Ended 31 March 2024 11 Net Incomingloutgolng resources Net outgoing resources for the year include.. 2024 2023 Operating leases - other assets Audit fees Other non-audit sep4ices Depreciation of fixed assets Amortisation 13,733 34,000 1.600 534,503 13.297 21,570 1,250 611,326 159 12 Tru8t••8 r•mun•ratlon and exp•n808 No trustees, nor any persons connected with them, have received any remuneration from the group during the year {2023.' £Nil). The amount expenses waived by the trustees during the year totalled £5,526 (2023 - £2,021). 37 North Music Trust Notes to the Financlal Statements for the Year Ended 31 March 2024 13 Staff c08ts The aggregate payroll costs were as follows: 2024 2023 Staff costs durlng the year were: Wages and salaries Social security costs Pension costs 6,893,829 551,973 291,405 7,737,207 5,837.195 491,689 256,185 6,585.069 The monthFy average number of persons (including senior management I leadership team) employed by the group during the year expre88ed as full timè equlva￿nts was as follows: 2024 No 2023 No Performance and programme Make Music Management and Admin Customer Services 57 56 72 74 143 88 183 405 345 The numb8r of employees wh08e emolumenls fell within the following bands wa8.. 2024 No 2023 No £60.001- £70.000 £70,001- £80.000 £80,001- £90,000 £90,001- £100,000 £100,(M)1- £110.000 The total employee benefits of the key management personnel of the group were £535,832 (2023 - £470,515). 14 Taxatlon The group is a registered charity and is therefore potenkn'ally exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the exient that such income or gains are applied exclusively lo charitable purposes. 38 North Music Trust Notes to the Financial Statements for the Year Ended 31 March 2024 15 Intsngible fixed assets Group Software & Website Development costs of £60,163 which were prevtously capitalised have been fully amortisted. 16 Tang5ble flxed assets Group Leasehold property Fumltur• and Assets und•r Improvements •qulpmont con$tru¢tlon Instruments Total Cost At 1 April 2023 Additions Transfer8 3.771,214 223,591 498.321 4.534,274 413,424 100,000 592.346 63.457 598,321 617,624 9,515,458 700,472 At 31 March 2024 4,493,126 5,047,698 57.482 617,624 10,215.930 Depreclatlon At 1 April 2023 Charge for the year 1,207,437 3,336,975 414,260 4,958.672 233,866 300,413 12,670 546,949 At 31 March 2024 1441,303 3,637,388 426,930 5.505.621 Net book value At 31 March 2024 3,051,823 1,410,310 57,482 190,694 4.710,309 At 31 March 2023 2,563,777 1,197,299 592,346 203.364 4.556,786 39 North Music Trust Notes to the Flnancial Statements for the Year Ended 31 March 2024 Company Leasehold property Furnlture and Assets under Improvements equlpment constructlon Instruments Total Cost At 1 April 2023 Additions Transfers 3,771.214 223,591 498,321 3.771,007 373.753 100,000 592.346 35,423 598,321 617,624 8.752,191 632,767 At 31 March 2024 4,493,126 4,244.760 29.448 617,624 9,384.958 Depreclatlon At 1 April 2023 Charge for the year 1,207,437 2.580.547 414,260 4,202.244 233,866 287,968 12,670 534,504 At 31 March 2024 1,441,303 2,868.515 426,930 4,736.748 N•t book valu• At 31 March 2024 3.051,823 1,376,245 29,448 190,694 4,648,210 At 31 March 2023 2,563,777 1,190,460 592,346 203,364 4,549,947 17 Flxed asset Investments Group 2024 2023 Other investments 5,547,520 5,245.084 Oth•r Inve8tm•nts Llsted Investments Total Cost or Valuatlon At 1 April 2023 R8valu8tion Additions Disposals 5,245,084 5.245.084 333,906 333,906 1,153,138 1,153,138 1,184,608 1,184,608 At 31 March 2024 5,547,520 5,547,520 Net book value At 31 March 2024 5,547,520 5,547.520 At 31 March 2023 5,245,084 5,245.084 40 North Music Trust Notes to the Financial Statements for the Year Ended 31 March 2024 Company 2024 2023 Shares in grDUP undertakings and participating interests Other investments 5,547,520 5,245,084 5 245 086 5 547 522 Shares In group undertaklngs and partlclpatlng Interests Subsldlary und•rtaking8 Totsl Cost At 1 April 2023 At 31 March 2024 Net book value At 31 March 2024 At 31 March 2023 Oth•r Invastmonts Llstad Inv08trn•nt8 Total Cost or Valuatlon At 1 April 2023 Revaluation Additions Disposals At 31 March 2024 5.245,084 5,245,084 333,906 333,906 1,153,138 1,153,138 1,184,608 1,184,608 5,547,520 5,547,520 Net book valuè At 31 March 2024 S,S47,520 5,547,520 At 31 March 2023 5,245,084 5,245,084 41 North Music Trust Notes to the Flnancial Statements for the Year Ended 31 March 2024 Detalls of undertaklng8 Details of the investments in which the company holds 200h or more of the nominal value of any class of share capital are as follows.. Country of Incorporatlon Proportlon of votlng rlghts and 8hare8 held 2024 2023 Pr5nclpal actlvlty Undertaklng Holdlng Subgldlary undortaklng8 Supporting activiiies to the performing arts Music North Limited United Kingdom Ordinary 1000 100% Performances for the Royal Northem Sinfonia Royal Northern Sinfonia United Kingdom Ordinary 1000 100% 42 North Music Trust Notes to the Flnanclal Statements for the Year Ended 31 March 2024 Subsldlaries The profit for the financial period of Music North Limited was £921,512 (2023 - £817,069) and the aggregate amount of capital and resenies at the end of the period was £994.537 (2023 - £897.950). The profi't for the financial period of Royal Northern Sinfonia was £829,497 (2023 - £582,839) and the aggregate amount of CAPital and resep4es at the end of the period was £2.287.187 (2023 £1.457,690). Reserves within Royal Northern Sinfonia are signfiicant due to the timing of the recelpt of the orchestrial Tax Relief. The 2024 year end reserves includes years worth of claims that were not yet received. 18 Stock Group Company 2024 2023 2024 2023 Finished goods 43,910 55,419 19 Debtorn Group Company 2024 2023 2024 2023 Trade debtors Due from group undertakings Prepayments Other debtors 469,723 161,941 251,754 245,868 116,849 78,387 692,858 123,944 501,157 202,697 28,261 856.059 2,629,156 78,387 3,177,266 2,083,054 28,264 2,273,259 20 Cash and cash equlvalents Group Company 2024 2023 2024 2023 Cash on hand Cash at bank 27,265 7.940,347 55,460 9,116,684 8,212 6,788,751 21.131 7.908,437 7,967,612 9,172,144 6,796,963 7,929,568 43 North Muslc Trust Notes to the Financial Statements for the Year Ended 31 March 2024 21 Credltors: amounts falllng due wlthln one year Group Company 2024 2023 2024 2023 Trade creditors Other bans Other taxation and social securty Other creditors Accruals and deferred income 268,968 79,220 442,548 76,714 261.639 79,220 431,962 76,714 302,969 39,133 3,236.181 3,926,471 171,975 41,109 2.942,290 3,674,636 183,143 39,133 2.883.994 3,447,129 172,266 41,109 2,586.122 3,308,173 D•fèrrod Incom• Group 2024 2023 Defarred income at 1 April 2023 Resources deferred in the period Amounts released from previous periods Deferred income at year end 2,513,110 2,564,368 2,478,929 1,988,577 2.015,528 1,468,995 2,598,549 2.513,110 Company 2024 2023 Deferred income al 1 April 2023 Resources deferred in the period Amounls released from previous periods Deferred income at year end 2,215,046 2,280,764 2,194,396 2,301,414 1,843,220 7,841,285 7,469,459 2,215,046 Deferred Income Comprises: Advance 8ox Office Sales Education fee income and hall and conference bookings invoiced in advance. and Grant income and core funding relating to future accounting periods. 22 Crndltors: amounts falllng due after one year Group Company 2024 2023 2024 2023 Other loans 3,180.477 3,197,385 3.180.477 3.197.385 North Music Trust Notes to the Financial Statements for the Year Ended 31 March 2024 Other loans comprise £79,220 (2023.. £154,671) which are repayabl8 in annual instalments until 1 April 2024 and bear interest annually at a rate of 1.620A. A further loan of £3,000.000 was taken out on 10 March 2021 to support and maintain the cultural ecology of the charty. The loan is repayable in bi-annual instalments until 10 March 2041, commencing from 1 February 2025. The loan bears interest annually at a rate of 2%. The loan balance above includes accumulated interest of £180,477 (2023= £119,428). 23 Obllgatlons under leases and hlr• purchase contracts Oporatlng lease commltments Total future minimum lease payments under non-cancellable operating leases are 88 follows: Group Company 2024 2023 2024 2023 Othèr Within one year Between one and five years 14,688 26,748 41.416 10,728 2,569 13,297 14,668 26,748 10,728 2,569 13.297 41,416 24 P•n8lon and othor 8cheme8 Deflned contrlbutlon penslon schem• The group operates a defined contribution pension schem•. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £291,405 (2023 £256,185). Contributions totalling £37,174 (2023 - £33,736) were payable to the scheme at tho gnd of the year and are included in creditor8. 25 Commltmant8 Group Capltal commltments The total amount contracted for but not provided in the financial statements was £28,000 (2023 £127,819). Company Capltsl commltments The total amount contracted for but not provided in the financial ststements was £Nil (2023 £127.819). 45 Thi In r <0 O IY> In 1 OÈ I In OV4 o o CuouuL) si èj .E£ ) OCO r (o r O Q) Q) I (C• Iri 0 0￿￿> In ra)r 11,-'Iiiii In (N In (O a>r In ¢0 li U UL) North Music Trust Notes to the Financial Statements for the Year Ended 31 March 2024 28 Analysis of net funds Group Other non cash changes At 1 Aprll 2023 Financing cash flows At 31 March 2024 Cash at bank and in hand Debt due within one year Debt due after more than one year 9.172,144 {76,714) 11,204.532) 76.704 7,967.612 (79.220) (79,210) 3,197.385 16,908 3,180,477 Net funds 5,898,045 4,707.915 1,127,828 62.302 Other non cash change8 At 1 Aprll 2022 Flnanclng cash flow¥ At 31 March 2023 Cash at bank and in hand Debt due within one year Debt due after more than one year 9,508,224 (190,043) (336,080) 75.491 9,172,144 (76,714) 37,838 3.099,838 97,547 3,197,385 Net funds 6,218,343 5898045 260,589 59,709 29 Related party tran8actlon8 Group Company During the year the company made the followng related party transaction8.' During the year, the company made purchases of £739,5￿ (2023.. £746.922) from Gateshead Energy Company Limited, a company under common directorship. Payments made in the year totalled £782.93812023'. £717.415) and the amount owed at the year end, included within the company's creditors, totalled £65,870 (2023.. £57,913). During the course of the year, the company made payments on beha￿ of the 8ubsidiary, Music North Limited, totalling £610,232 (2023: £638.356). Receipts from the subsidiary against these payments totalled £946,512 12023: £2.529,181) and the amount owed at the year end, included within the companys creditors, totalled £28,395 (2023: £126). The company also recieved donations of £824.925 (2023.. £83,564) from the subsidiary in the year, no amounts remain outstanding in respect of these donations at the balance sheet date. At the year end, the company was owed £245,868 {2023.' £415.260) from its subsidiary Royal Northern Sinfonia Limited, included within the companys debtors. At the balance sheet date the amount due tolfrom was £Nil (2023 - £Nil). 51 North Music Trust Comparative Consolidated Statement of Financlal Actlvltles for the Year Ended 31 March 2023 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Total 2023 Unrestrlcted Restrlctod Endowment Note Income and Endowments from: Donations and legacies Charitable activities Other trading activities Investment income 5,275,793 4,855,674 1,893,843 45,028 632,725 5.908.518 4.855,674 1,893,843 207,022 161,994 Totsl income 12,070,338 632,725 161.994 12,865.057 Expendtture on: Raising funds Charitable activitles Other expenditure Total expenditure Gainsllosses on investment assets (260,733) {11.785.153) 1,360,225 (25,766) (286,499) (12,417,878> 1,360,225 (632,725) (13,406,111) (632,725) (25,786) (14,064,602) 280.316 280,316 Net expenditure Transfers between funds (1,335,773) (144,088) (1,479.861) 167,147 39,176 Net movement in funds (1,129,450) (39,176> (311,235) {1.479.861) Reconclllatlon of funds Total funds brought fopAiard Total funds carried forward 26 7.720.875 633,338 594,162 7,556,319 15,910,532 14,430,671 6,591,425 7,245,084 52