Registered number: 04218180 Charity number: 1090623 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED (A Charitable Company Limited By Guarantee) DIRECTORS. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED CONTENTS Page Company infonnation Directors. report Independent auditor's report on the financial statements ststement of financial activities 10-13 14 Balance sheet 15 ststement of cash flows 16 Notes to the financial statements 17-36 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED COMPANY INFORMATION FOR THE YEAR ENDED 31 MARCH 2024 Trustees Mr P Willan Dr H Dodman Ms J Harnden Cllr J Humphreys Mrs A Letch (Resigned 18 July 2024) Lady C Panufnik MrA Price Ms E RO￿eY Mrs S Griffin (Resigned 16 November 2023) Company registered number 04218180 Charity registered number 1090623 Registered office 7 Briar Road Twickenham Middlesex TW2 6RB Company secretary Miss C Peirson Independent auditor Cooper Parry Group Limited Statutory Auditor 250 Fowler Avenue Farnborough Hampshire GU14 7JP Page 1 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Directors (who are also trustees for the purposes of the Charities Act) present their report with the financial statements of the Company for the year ended 31 March 2024. The Directors have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended practi￿ applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015). Administrative information in respect of the charity can be found on the company information page. Governing Instrument RMT'S charitable objects are regulated by its Memorandum and Articles of Association dated 16 May 2001 and updated 24 January 2002 and is constituted as an incorporated body. Objectives The principal objective of RMT is to provide musical opportunities of the highest standard for young people and others in and around the London Borough of Richmond upon Thames. Aims The aim of RMT is to be the main provider and key contributor of musical opportunities within the borough, transforming individuals and the community through.. high quality music tuition exciting and innovative large-scale events and perfonnances provision of and support for group work in choirs, bands, orchestras and chamber ensembles powerful and effective music therapy for children and adults comprehensive training and development thereby utilising music as a vehide to enrich and enhan￿ the education, health and quality of life of RMT clientele. Structure and Governance The Chief Executive, Caroline Peirson, is responsible for the day to day running of the charity and reports to the Board of Directors who oversee and approve strategic and financial plans. The CEO is assisted by the Development Director, Development Manager (Vocal), and Head of Music Therapy. Together they co-ordinate the work of three administrative staff, seven Team Leaders, one Lead Teacher and specialist teams of Associate Teachers and Music Therapists. Going Concern The statement of financial position shows an overall net asset position. This year end position includes the Local Government Pension Scheme surplus of £429,000 (2023 surplus of £159,000). The impact of increased pension costs in the future is a matter that the directors will continue to keep under review. The day to day working capital requirements are met from the income received. The Directors have a reasonable expectation that RMT has adequate reSoUr￿S to continue in operational existence for the foreseeable future. They therefore continue to adopt the going con￿rn basis for accounting in preparing the annual financial statements. Directors The following Directors have held Offi￿ during the year: Dr H Dodman (Deputy Chair) {S) (R) Mrs S Griffin (F) (resigned 16 November 2023) Ms J Harnden {R) Cllr J Humphreys (F) Mrs A Letch IS) (resigned 18 July 2024) Lady C Panufnik MrA Price Ms E Rowley Mr P Willan (Chair) {S) (F) (R) (F) Funding Sub-committee (S) Safeguarding Sub-committee (R) Remuneration Sub-committee Page 2 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED DIRECTORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Directors and Method of Appointment The Directors who are also the Trustees, are elected at the AGM or may be appointed during the year by the Board with election at the following AGM. The candidature of people with skills, experience andlor interests relevant to the charitable companies, activities is encouraged through local organisations, existing contacts and search channels. A skills matrix was developed and adopted during the financial year 2017118 to help ensure the Board has the right blend of skills, knowledge and experien￿ to support the executive team and provide the necessary scrutiny and strong governan￿. All new Board members are given induction training which includes learning about the background, ethos and day to day activities of the charitable company as well as outlining their responsibilities. Formal arrangements are supplemented by opportunities to meet staff and to attend events andlor classes to ensure Directors have an overview of the workings of RMT. Stsffing The organisation is committed to a policy of equal opportunities in its employment practices. All members of staff having contact with children must be cleared through the Disclosure and Barring Service {DBS)- RMT has safeguarding policies in place with all teachers undertaking Level 2 Safeguarding Training, renewed within a three-year cycle. Music Therapists re￿1ve Level 3 training. Caroline headed a team of six core staff, seven part-time Team Leaders, one part-time Lead Teacher, eighty Associate Teachers and twenty Music Therapists. Organisation The Directors determine the organisation's strategy and consider and approve proposals for new policies or variations on existing policies. Annual budgets, business and development plans are subject to Board approval. The Board appoints the CEO and the Company Secretary. The Board met four times during the year. The Safeguarding sub-committee meets annually to review any issues arising during the year and to review safeguarding policy and pro￿dure5, reporting back to the full Board. It also meets when an individual issue requires more detailed scrutiny andlor immediate action. The Funding sub-committee scrutinizes the funding of the organization and considers future fvnding and fvndraising opportunities. The Remuneration and Appointments sub-committee meets to consider remuneration policy and senior staff appointments. Review of the year and plans for the future Funding Arts Council England The new National Plan for Music Education (NPME), published in July 2022 and implemented from September 2023, sets out a refreshed vision for music education.. To enable all children and young people to leam to sing, play an instrument and create music together, and have the opportunity to progress their musical interests and talents, including professionally. As lead organisation for the local Music Education Hub, Richmond Music Trust IRMT) continued in their role supporting the delivery of the plan, with responsibility for the five strategic functions set out in the plan.. Partnership, Schools, Progression and Musical Development. Inclusion, Sustainability. A strong and mutually supportive relationship continues with Arts Council England (ACE) who distribute funding on behalf of the Department for Education (DfE). A significant amount of background information and statistical data relating to the NPME is provided to ACE on a regular basis to secure release of grant payments. ACE replaced the Annual Feedback letter with quarterly feedback. RMT continues to be rated as 'minor risk, which is the lowest category of COn￿M. During the year ACE identified financial resilience and school engagement as some of the key strengths of the organisation. LB Richmond upon Thames Council Grant (via Achieving for Children) RMT continues to benefit from an annual grant from Richmond Council through Achieving for Children, and the Trustees are extremely grateful for the Borough's ongoing support. The grant is integral to maintaining the breadth and quality of provision that has been developed over the last 30 years. It is also vital for the support of disadvantaged families, ensuring children who are likely to miss out have the same opportunities that are available to others. Page 3 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED DIRECTORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Charitable Funds and Remission Scheme Over 280 children and young people benefited from the remission scheme this year. This is a small increase on the number of pupils in the previous year (approx. 240, 2022123) and represents approx. 13 % of those receiving tuition overall. RMT remains deeply grateful to the Hampton Fund, Richmond Parish Lands Charity and the Barnes Fund for their support of this scheme which, alongside additional funding from RMT, ensures that children from families in financial difficulty do not miss out and are able to participate in instrumentallvocal tuition and to enjoy the significant benefits of music-making. Mandy Lee Scholarship Fund The fund was established in 2014 in memory of Mrs Mandy Lee, the wife of Michael Lee, an RMT piano teacher. With criteria for the fund including musical aptitude and financial need, two scholars have been supported by the scheme this year, receiving financial help with tuition fees, ensemble membership and instrument hire. London Music Fund Trustees are also grateful to the London Music Fund for providing financial support for one LMF scholar who graduated from the programme in July 2023. RMT continues to support the pupil who is progressing well. Operations Music Makers RMT'S provision for Year 1 pupils continues to offer a preparatory course for children intending to start learning to play an instrument. It offers a wide range of musical activities for young children and provides an invaluable preparation for those starting instrumental tuition in Year 2. During the year approximately 350 children participated in the Music Makers programme in 12 schools across the Borough. First Access to Music Under the refreshed NPME, enabling first access to instrumental music making for all children remains a priority. Over the last year the Trust's four term Whole Class Ensemble Tuition (WCET} programme was delivered in over 800/0 of borough primary schools. The four-term programme includes an optional introductory term of vocal work followed by a temi of wholewclass instrumental learning. Children can then choose to continue learning in large groups for more terms. This Transition Stage leads on to RMT'S standard small group tuition. The term of whole-class instrumental tuition remains free to school. A small per-pupil charge is made for those continuing to the large group stage, which is usually passed on to parents. The continuation rate is on average around 15 %. The programme ensures all children experience learning a musical instrument, and is particularly valuable for those schools that find it more difficult to sustain a programme of small group and individual instrumental tuition funded by parents. Our whole class provision has also been further developed, beyond the standard WCET programme, in a number of schools, extending across a number of different year groups. Standard Tuition RMT offers standard small group and individual tuition, delivered weekly during term time in schools across the Borough, and at our out-of-school ￿ntres. This activity forms a significant part of RMT'S provision, and plays a key role in supporting our wider offer. Student numbers have remained stable, at around 80 % of our pre-covid total numbers. 2105 pupils were "on-course" and receiving small group or individual instrumental and vocal tuition at the start of the new academic year (Autumn 2023} in comparison to 2050 the previous year (Autumn 20221. A small amount of tuition continued online, via the model developed in Summer 2020, creating additional opportunities for students unable to aC￿sS faCe-tO-fa￿ tuition at a school or ￿ntre. Examinations During the year RMT ran a total of five fa￿ to fa￿ private visit sessions, three for ABRSM and for Trinity exams. A total of 148 candidates were entered of which 32 passed with distinction. In addition, a number of teachers continued to support the digital perfomiance options that are now available. As well as ABRSM and Trinity College of Music exams, many RMT students continue to be entered for Registry of Guitar Tutors exams, Trinity Rock and Pop exams and Rock School exams. Courses Courses remain an important strand of RMT work, bringing young musicians together to create and make music. Page 4 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED DIRECTORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Bandlt: RMT'S contemporary band course continued to build on its success. The Easter course (3-6 April 20231 saw seven bands coming together to learn covers, rehearse, write and perform their own songs, with the Summer course (21-25 August 2023) maintaining its full capacity of twelve bands. Both week-long courses culminated in fantastic gigs, with the Summer event taking pla￿ at The Exchange in Twickenham, in front of enthusiastic audiences of parents and friends. Instrumental Day Workshops.. As part of our 30 year anniversary celebrations a series of instrumental workshops were planned to take place during the Summer Term 2024. However, the series was kicked off in March 2024 with the RMT Recorder Day, featuring international award winning recorder quartet Palisander. Music Centres Ensemble rehearsals and instrumentallvocal tuition continued to take place at our Saturday Centre, with additional out of school instrumental tuition taking Pla￿ in Briar Road on four evenings during the week. RMT Junior and Senior Concert Bands also rehearsed on Tuesday and Wednesday evenings at Waldegrave School. Beginners can join Junior Strings, Junior Brass Band or Junior cOn￿rt Band, moving on to Intermediate Training Orchestra or one of our senior ensembles when ready. Chamber Group, Ensembles, Jazz Band, Rock Band and Saturday Bandit offer a broad range of additional opportunities. Senior Ensembles Richmond Youth Screen Orchestra (RYSO), Richmond Youth Concert Band (RYCB), Richmond Youth Brass Band, Richmond Youth Jazz Band and Soul Band continue to attract new members, and to perform regular concerts of a high standard. Notable performances included the RMT Ensembles cOn￿rt on 12 July 2023 at The Exchange, Twickenham, featuring RMT ensembles from beginner to advan￿d. In the Spring Term 2024, RYSO and RYCB came together at Richmond and Hillcroft Adult Community College for a rehearsal and performance day. This culminated in a well-attended concert for family and friends. The RMT Jazz Band continued to be our busiest ensemble and participated in various community events across the Borough. Instrument Hire Scheme RMT maintains an instrument hire scheme helping children access a range of instruments. Free instrument loan is provided for children from families eligible for the remission scheme (subject to availability)- A whole- class set of instruments is also provided and maintained in every KS2 school for the four term WCET programme. All children continuing to the Transition Stage are provided with free instrument loan for the final o terms of the programme. Websitelsocial Media RMT'S updated website and social media presence continues to be a valuable tool for the organisation, both in the promotion of our Servi￿$, and in supporting the day to day operations of the TrusL RMTS social media platforms have seen increased engagement over the last year, and we continue to seek out opportunities to reach a wider audien￿. Staff Training and Development The majority of staff meetings, along with the September Inset remained online in order to maximise acCess1attendan￿. The main RMT Inset session took place on Thursday 14 September 2023, with a focus on inclusive practice in small group instrumentallvocal teaching. The session was delivered by Emily Stratford, Tri- Borough Music Hub SEND Inclusion Strategic Lead. Instrumentallvocal team meetings also took pla￿ with the opportunity for more instrument specific discussion. Throughout the year, all newly appointed staff attended the usual induction course providing detsils about work practices, expectations, Health and Safety for employees and Safeguarding children. New teachers are closely monitored and supported (including observation visits in their first and second terms), whilst ongoing support for all instrumental teachers, including informal visits and formal annual observations with written feedback, continues to be undertaken by Team Leaders and Lead Teachers. Page 5 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED DIRECTORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Support for Schools RMT continued to provide additional advice and support to schools as and when required, on a wide range of musical issues. Additionally, ongoing communication and support is provided to school-based music staff as part of the primary and secondary singing events and the school orchestra instrumental day. Specialist RMT staff work with the children alongside school staff, modelling a variety of teaching and rehearsal techniques and helping to raise standards and expectations. The success of this approach is reflected by the very high levels of engagement of school music leaders and the depth of technical and musical knowledge and skills on display at our large-scale events. Events Primary Singing Festival 2024 Although the festival generally takes place in March each year, due to availability of the venue, the 2023124 festival was scheduled for June 2024 at the Rose Theatre in Kingston. 40 Borough Schools registered for the event, with approximately 1750 pupils due to take part. The festival maintained its collaborative character, with choir leaders and the RMT singing team continuing to work closely together. Music coordinators and choir leaders attended a vocal workshop in February 2024 and visits by the singing team to all participating schools, along with ￿e1ve regional workshops, took pla￿ throughout March and April 2024. The theme Whatever The Weather inspired imaginative song chol￿S from the schools partnerships, and the four massed songs were greatly enjoyed by children and teachers alike. Live at The Exchange 2023 Our Secondary vocal event Live at The Exchange (fomierly Live @ the Rose) took pla￿ on 14 July 2023. The event remains as a student-led gig which offers the opportunity for soloists and small groups to sing with a live professional band. Close to 40 students took part singing a mixture of covers and students, own songs. The event provided an exciting opportunity for the students to rehearse and perform at a professional venue and the standard of performances was extremely high. Schools Instrumental Day May 2023 This event was developed to help support the rebuilding of school orchestrasl ensembles post-covid. Schools were invited to bring players to The Exchange in Twickenham on 23 May 2023 for a day of ensemble work and informal performan￿, celebrating young musicians from across the Borough. Over 200 pupils from 10 Borough Primary schools got the chance to meet and play alongside their friends as well as pupils from other schools, led by a team of specialist RMT Team Leaders/Associate Teachers. Partnerships South West London Music Education Partnership {SWLMEP) RMT'S partnership with music SeNi￿S from Merton, Wandsworth, Hounslow, Kingston, Sutton and Croydon remains strong. The partnership planned, prepared and SUC￿ssfUllY submitted an innovative bid to secure continued DfE funding to deliver the new NPME. The seven music ServI￿S will collaborate via the new Southwest London Music Hub from September 2024, working together to align aims and strategic functions to deliver the plan and create additional and improved opportunities for children and young people. Music Therapy During this past year RMT has continued to provide a stable and financially sustainable music therapy seNice across all areas of clinical acb-vity, consolidating our provision at pre-pandemic levels. Areas of clinical activity have been.. Children and young people with special educational needs Children and young people with social. emotional and mental health needs Children and adults with life limiting conditions Children and adults with neurological conditions or acquired brain injuries Adults with learning disabilities Adults with mental health needs Adults with Dementia RMT'S main focus of delivery has been from our therapy room in Twickenham, which is fully utilised 6 days a week. Sessions are also delivered on an outreach basis to schools, day centres, care homes and hospitals or from the Hook Centre in Kingston. Page 6 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED DIRECTORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Although the majority of provision has been in person, we have also maintained and developed our online offer, which continues to be of interest to some clients and enables our service to reach vulnerable children and adults, who othe￿iSe would not have access to RMTS servI￿s. In this context RMT has continued to work with a nationwide specialist provider ft)r online content to care homes (www.personcentredsofvare.com}, providing a weekly singing and well-being group which is live-streamed via an online platform to a wide selection of care homes for older adults. RMT has continued to provide Singing Together, an online singing group for older adults, in particular those with Dementia, living in their own homes (funded by 'Music for Dementia,). This group has a steady membership of approx. 15-20 participants. As the initial funding has now come to an end, we are looking for opportunities for follow on funding to ensure existing and new members can continue to benefit from the group. Future Plans RMT will continue to work across all areas of provision to achieve our stated objective to provide musical opportunities of the highest standard for young people and others in and around Richmond. We will seek to maintain current levels of provision, as well as creating opportunities to increase the number of families and schools accessing our services and the range of provision and services offered. The last 12 months has seen ACE oversee a restructure of the national ne￿Ork of Music Hubs and, from September 2024, the creation of fewer, larger Hubs. Overall DfE Funding remains unchanged with a single Hub Lead Organisation (HLOI in each area now having responsibility for the distribution of DfE funding to their Hub partners. The reorganisation has provided the opportunity for SWLMEP to consolidate their existing and long- standing partnership working by forming Southwest London Music Ltd., the new HLO for the Southwest London area. Each music Servi￿ (RMT, Merton, Wandsworth, Croydon, Sutton, Hounslow and Kingston) will retain their individual identity and local focus, coming together to ensure efficient and effective delivery of the NPME and to create additional opportunities for children and young people. The risks of changing local and national govemment priorities affecting grant funding remains, and RMT continues to apply flexible working practices to mitigate risk. Careful management of finances over the last few years has maintained financial stability with reserves remaining at Charity Commission recommended levels. Following significant year on year increases to the Teachers Pension Scheme contributions, further action to control costs includes changes to the pension scheme offered to RMT teachers and therapists. RMT'S programme of eventslactivities for the 2024125 academic year will continue to support our young musicians while also continuing to celebrate RMT'S 30th anniversary. There will be a particular focus on the development and growth of our ensemble provision and a variety of opportunities for new players to experience the benefits of playing together. We will also be further developing our Schools Ensemble event, bringing school groupslorchestras together and providing a platform for them to perform and experience music together. Demand for our Music Therapy is expected to remain high with the department continuing to see strong growth in all areas. Overall RMT is in a strong position to continue moving forward, particularly in terms of its relationship with, and support from parents, schools and the wider community. Financial Review Operating Deficiusurplus The Directors are pleased to report that, RMT achieved an operating surplus of £50,067, compared to the operating surplus of £62,132 at the end of the previous year. This operating surplus is before taking into account an increase in the pension liability of £9,000 (2023.. decrease £40,000) which results in the net income figure of £59,067 {2023.. £22,132) being reported in the financial statements. There was an increase in income to £1,696,275 from £1,651,807 in 2023, as a result of the continued increase in provision. Total expenditure increased to £1,637,208 from £1,629,675 in 2023. Total assets less current liabilities (excluding pension liabilities) increased by £50,067 to £541,714 from £491,647 in the previous year. Restricted funds at the year*nd were £60,936 (2023.. £4,522), unrestricted funds showing a surplus of £909,778 (2023.. £646,125} and total funds a surplus of £970,714 (2023. £650,647). Page 7 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED DIRECTORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Although the operating surplusldeficit is regarded as a meaningful financial performance measure, in order to comply with accounting standards, liability relating to the Local Government (defined benefit) Pension Scheme for administrative staff is also reported. Liability is recognised as the benefits are earned, not when they are due to be paid and accordingly an estimate of the liabilities accrued for the period is provided by the scheme's actuary (see notes to the financial statements for details). The total value of the pension scheme surplus at 31 March 2024 is £429,000 (2023.. £159,000). Reserves policy It is the policy of RMT to continue to seek to maintain free reserves of the charity, excluding the defined benefit pension scheme liability, at a prudent level equating to three month's of unrestricted expenditure, as recommended by the Charity Commission. These reserves are to provide sufFicient funds to cover management, administration and operational costs over the stated period and for the purchase of ne￿SSary equipment and any other unforeseen capital costs. RMT free reserves decreased at 31 March 2024 to £480,778 (2023.. £487,125)- Average one month's unrestricted expenditure increased to £132,228 (2023= £131,275) so that free reserves covered approximately 3.6 months of unrestricted expenditure (2023= 3.8). It is expected the cover will reduce next year, but will remain at a prudent level, on account of increased national insurance and other costs. General Dats Protection Regulation (GDPR) Work continues to be carried out to ensure Complian￿ with the UK GDPR. The RMT Data Protection Policy continues to be reviewed on an annual basis. The Policy shows RMT'S commitment to the principles when collecting, processing and storing personal data and infonns all RMT data handling pr0￿dUreS. The RMT Privacy Notice, approved by the Board in 2017, is reviewed on an annual basis. The Privacy Notice continues to appear whenever users apply for RMT servi￿$ or provide infomiation to RMT online. Further IT updates have been carried out to enhan￿ the security of the RMT data system from any external cyber-attacks. These go beyond the level of security required in the Cyber Essentials certification which is processed on an annual basis. RMT will continue to work with our IT provider, Minerva, to ensure any additional measures required are put in place to continue to comply with GDPR. Risk Management As required by the Charity Commission, the Directors undertake regular reviews of the significant risks to which RMT is exposed and ensure that mitigation policies are in place. A risk register exists and is updated regularly. The key risk that RMT has identified is the inability to secure or sustain current level funding. A number of lower priority risks have also been identified and prO￿dureS have been implemented which minimize these identified risks. The Board regularly discusses aspects of the operations to understand and manage the risk it faces. Relationships with other organisations RMT is keen to form partnerships with other organisations that offer specialist support and contribute to the breadth and quality of provision. Existing partners include M'.Tech, Kingston Music Service and the South West London Music Education Partnership. The Music Therapy department engages with a range of partners that refer clients to RMT. We actively seek and welcome new partners who might improve, enhance or broaden our provision. Funders are another group who have a continuing interest in RMT'S performance and its use of resources. They include Arts Council England, LBRUT, Hampton Fund, Richmond Parish Lands Charity and Barnes Fund. We are also supported by donations from individuals. To all of them, the Directors give their thanks on behalf of the most important stakeholders, the young people, to whom we continue to provide musical opportunities. Charitable Activities Music provision.. the aim of RMT is to be able to offer music tuition to all children and young people of school age within the borough. RMT aims to provide music tuition as and when requested. However, this is not always immediately possible therefore waib'ng lists are created. Waiting lists are closely monitored and pupils are offered places as soon as tuition becomes available. Additional teachers are engaged to increase capacity where appropriate. There are currently 45 primary schools, 11 secondary and 3 Special Educational Needs schools within the Borough. The Trust is music provider for almost all borough grant maintained schools. Page 8 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED DIRECTORS, REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Planning and Development The Annual budget is presented by the Executive for Board approval. Alongside slringent budget monitoring procedures, indicators are used to measLtre perfomance. These include pupil numbers, waiting lists, the quality of teaching and learning and feedback from stakeholders. Public Benefit The Direclors confimi that they have paid due regard to the public benefit guidance published by the Charity Commission in detemining the activities undertaken by the Charitable Company. The Charity Commission, in its 'Charities and public benefif guidan￿, ststes that there are key principles to be met in order to show that an organisation's aims are for the public benefit- firstly, there must be an identffiable benefil and, secondly, that the benefrt must be to the public or a section of the public. The Directors are satisfied that both these key principles are met by the operation and achievements of the Charitable Company. Directors, responsibilities Charity law and Company law require the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the directors have been required to: (a) select suitable accounting policies and then apply them consistently, (b) observe the methods and principles in the Charities SORP 2019 (FRS 102). (c) make judgements and estimates that are reasonable and prudent., (d) state whether applicable UK Accounting Standards have been followed, subjed to any material departures disclosed and explained in the financial statements,. (e) prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charitable company will continue to operate. The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charrtable company and to enable them to ensure that the financial statements comply with the Companies Act of 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and olher irregularities. In so far as the Directors are aware.. there is no relevant audit infomiation of which the charitable compantys auditor is unaware, and the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the audrtor is aware of that infomation. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable companls website. Legislation in the United Kingdom governing the preparation and dissemination of financial ststements may differ from legislation in otherjurisdiclions. Approved by order of the members of the board of Directors and signed on their behalf by. Mr P Willan Director Date.. 1 1 12 _1i'- Page 9 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED Opinion We have audited the financial statements of Richmond Upon Thames Music Trust Company Limited (the 'charitable company'} for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balan￿ Sheet, the 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, {United Kingdom Generally Accepted Accounting Practi￿1. In our opinion the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of its incoming resources and application of resources. including its income and expenditure for the year then ended., have been properly prepared in accordan￿ with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordan￿ with the requirements of the Charities Act 2011. 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 Auditorfs 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 United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit eviden￿ we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concem 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 Un￿rtaIntieS 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 responsibilits'es of the Trustees with respect to going concern are described in the relevant sections of this report. Page 10 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED (CONTINUED) Other inforniation The other information comprises the infomiation included in the Annual report other than the financial statements and our Auditorfs Report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitiy stated in our report, we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion.. the information given in the Trustees. Report is inconsistent in any material respect with the financial statements., or sufficient accounting records have not been kept- or the financial statements are not in agreement with the accounting records and returns., or we have not received all the information and explanations we require for our audit. certain disclosures of Trustees, remuneration specified by law are not made" or the Trustees were not entitled to prepare the finanaal statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Trustees, Report and take advantage of the small companies exemption from the requirement to prepare a Strategic Report. Responsibilities of trustees As explained more fully in the Trustees, responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is ne￿SSary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic altemative but to do so. Page11 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED (CONTINUED) Auditorfs responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 Auditorfs Report that includes our opinion. Reasonable assurance is a high level of assuran￿, 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, outiined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our prO￿dureS are capable of detecting irregularities, including fraud is detailed below.. Iwe gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the Directors the policies and procedures in place regarding Complian￿ with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance. During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. Our prO￿dureS in relation to fraud included but were not limited to= inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual joumal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was eviden￿ of bias by the directors that represented a risk of material misststement due to fraud. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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.or -uklauditorsres onsibilities. This description forms part of our Auditor's Report. Opinion 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 financial 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. Page 12 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED (CONTINUED) Use of our report This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed. Jane Wills Cooper Parry Group Limited Statutory Auditor 250 Fowler Avenue Farnborough Hampshire GU14 7JP Date= 1911212024 Cooper Parry Group Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. Page 13 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Restricted Unrestricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Note Income from: Grants and donations Charitable activities 115,840 296,214 1.277,456 4,101 2,615 412,054 1.277,456 4,150 2,615 405,338 1,245, 709 722 38 Investments other income 49 Total income 115,889 1.580,386 1,696,275 1,651,807 Expenditure on: Charitable activities Governan￿ costs 59,475 1,455,302 37,969 84,462 1,514,777 37,969 84,462 1,513,285 35, 768 80, 622 Raising funds Total expenditure 59,475 1,577,733 1,637,208 1,629,675 Net movement in funds before other recognised gains 56.414 2,653 59,067 22,132 Other recognised gains: Gain on defined benefit pension schemes 17 261,000 261,000 865,000 Net movement in funds 56,414 263,653 320,067 887, 132 Reconciliation of funds: Total funds brought forward 4.522 646,125 650,647 (236,485) Total funds carried forward 60,936 909,778 970,714 650, 647 The Statement of financial activities includes all gains and losses recognised in the year. Page 14 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED REGISTERED NUMBER: 04218180 BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Note Fixed assets Tangible assets 922 3,383 922 3,383 Current assets Debtors Cash at bank and in hand 12 327,752 631,065 327,222 515,999 958,817 843,221 Creditors.. amounts falling due within one year 13 (418,025) (354,957) Net current assets 540,792 488,264 Net assets excluding pension asset 541.714 491,647 Defined benefrt pension scheme asset 15 429,000 159,000 Total net assets 970,714 650, 647 Charity funds Restricted funds Unrestricted funds 17 17 60,936 909.778 4,522 646, 125 Total funds 970,714 650, 647 The entity was entitled to exemption from audit under section 477 of the Companies act 2006. The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006. However, an audit is required in accordance with section 144 of the Charities Act 2011. The Directors acknowledge their responsibilrties for complying with the requirements of the Act wth respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordan￿ with the provisions applicable to entrties subject to Ihe small companies regime. The financial statements were approved and authorised for issue by the Board of Directors and signed on its behalf b￿. Mr P Willan (Director) Date: Iq.Il.LoW4fr Page 15 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Note Cash flows from operating activities Net cash from operating activities 19 112,298 24,714 Cash flows from investing activities Purchase of tangible fixed assets Interest re￿iVed 11.382) 4,150 722 Net cash from investing activities 2,768 722 Cash flows from financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 115,066 25,436 515,999 490,563 Cash and cash equivalents at the end of the year 20 631,065 515,999 Page 16 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 General information Richmond Upon Thames Music Trust Company Limited is a company limited by guarantee in England and Wales. In the event of the Charitable Company being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charitable Company. The address of the registered office is., 7 Briar Road, Twickenham, Middlesex, TW2 6RB. The nature of the charity's operations and principal activities are to provide musical opportunities of the highest standard for young people and others in and around the London Borough of Richmond upon Thames. The charity constitutes a public benefit entity as defined by FRS102. The financial statements have been prepared in accordance with 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 {FRS1021 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland {FRS102), the Companies Act 2006 and UK Generally Accepted Practice. Accounting policies 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP (FRS 102) 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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Richmond Upon Thames Music Trust Company Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are prepared in steding which is the functional currency of the charity. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. The presentation currency is pounds sterling and amounts are rounded to the nearest pound, except for transactions and balances relating to the defined benefit pension scheme which are rounded to the nearest thousand pounds. 2.2 Going concern The statement of financial position shows an overall net asset position at 31 March 2024, however this is after the defined pension scheme asset of £429,000 has been accounted for. This pension asset is in respect of the local government pension scheme (see note 22). The impact of pension costs in the future is something that the trustees will need to consider in due course. The Charitsble Company meets its day to day working capital requirements through government grants and tuition fee income. There is some uncertainty concerning future income from some of these grant-making bodies, but the directors are pursuing new sources of income. The Charitable Company has demonstrated it has a robust business model and with careful management of overall costs has put itself in a strong and stable position from which to move forward. The Charitable Company is now making a steady return to normal levels of provision across its full range of activities. Page 17 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (continued) 2.2 Going concern (continued) The directors consider that it is appropriate to prepare the financial statements on a going concern basis, as they expect the Charitable Company to be able to conduct its activities within the facilities made available for a period of at least twelve months from the date of signing the accounts. Furthermore, budgets are prepared and carefully monitored by the directors who meet to discuss these regularly throughout the year. 2.3 Income All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of perf0rrnan￿ before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fiJlfilled. No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Income from charitable activities includes income earned from fundraising events and trading activities to raise funds ft)r the charity- Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred. If necessary, any element relating to future accounting periods is deferred. The charity receives government grants in respect of music education. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be re￿iVed and the amount can be measured reliably. If entitlement is not met then these amounts are deferred. Tuition fee income is stated net of refvnds and examination fees and the income is recognised in the period to which the tuition relates. Music therapy income is recognised in the period in which the service is provided. Investment and other income are accounted for on a receivable basis. 2A Expenditure All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs. Costs of raisin funds Includes all of the costs inCu￿ed in generating voluntary income. Costs of charitsble activities Comprises services, supplies and activits'es undertaken which directly support the Charity's objectives. 95 /0 (2023 95 % ) of the Offi￿ costs are estimated to have been in relation to charitable activities and 5 % (2023 - 5 /0) relating to costs of generating voluntary income of the company. Page 18 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (continued) 2A Expenditure (continued Governan￿ costs Includes those costs incurred in connection with enabling the charity to comply with external regulation, constitutional and statutory requirements and in providing support to the Directors in the discharge of their statutory duties. 2.5 Support costs allocation Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governan￿ costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resoUr￿s. Premises and other overheads have been allocated on an accruals basis. Fund-raising costs are those inCu￿ed in seeking voluntary contributions and do not include the costs of disseminating infomiation in support of the charitable activities. 2.6 Tangible fixed assets and depreciation Fixed assets for Charitable Company's use are capitalised at cost, where acquired, or at market value, as determined by the Directors, where donated. Fixed assets costing in excess of £250 are capitalised on the balan￿ sheet and are included in the financial statements at cosumarket value less depreciation. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the following basis= Musical instruments Fixtures and fittings Office equipment 330/0 per annum straight line 20 % per annum straight line 33 /0 per annum straight line A full yearfs depreciation is charged in the year of acquisition and none in the year of disposal. 2.7 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. 2.8 Cash at bank and in hand Cash and cash equivalents include petty cash, cash held in current accounts and fixed term deposit accounts with a short-term maturity of trrfelve months. 2.9 Liabilities Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third paty and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any discounts due. Page 19 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (continued) 2.10 Financial instruments The Charitable Company has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 '0ther Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial assets Financial assets are recognised in the Charitable Company's statement of financial position when the Charitable Company becomes paty to the contractual provisions of the instrument. Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition. Basic financial assets, which include trade and other receivables and cash and bank balan￿$, are initially measured at transaction price including transaction costs and subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Other financial assets classified as fair value through profit or loss are measured at fair value. Loans and receivables Trade debtors, loans and other re￿1VableS that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and re￿1Vables,. airment of financial assets Financial assets, other than those held at fair value through profit or loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the profit or loss. Dereco nition of financial assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity. Financial liabilities Basic financial liabilities are initialty measured at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Other financial liabilities classified as fair value through profit or loss are measure at fair value. Dereco nition of financial liabilities Financial liabilities are derecognised when, and only when, the Charitable Company's obligations ae discharged, cancelled, or they expire. 2.11 Operating leases Rentals paid under operating leases are charged to the Statement of financial activities on a straight-line basis over the lease term. Page 20 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (continued) 2.12 Employee benefits The cost of short term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 2.13 Pensions The Charitable Company operates two defined benefit pension schemes for the benefit of its employees. One of these schemes is an unfunded scheme and members contribute on a 'pay as you go, basis- these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. For the other defined benefit schemes, the pension costs are assessed using the projected unit credit method, the cost of providing pensions is charged to the profit and loss account so as to spread the regular costs over the service lives of employees. The pension obligation is measured at the present value of the estimated future cash flows using interest rates on government securities that have terms to maturity approximating the terms of the related liability- When the benefits of a scheme are improved, past service costs is recognised as an expense on a straight-line basis over the average period until the benefits become vested. To the extent that the benefits are already vested immediately, following the introduction of, or changes to, a defined benefit plan, the past Servi￿ cost is recognised as an expense immediately. In addition to these defined benefit schemes, the Charitable Company also operates one defined contribution scheme. 2.14 Fund accounting Unrestricted funds are comprised of the general reserve. The general reserve is the accumulation of surpluses and deficits and is available for use at the discretion of the Trustees in furtherance of the Charitable Company's general charitable objectives. Restricted fiJnds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. Page 21 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Critical accounting estimates and areas of judgment In preparing these financial statements, the directors have made judgements, estimates and assumptions that affect the application of the Charitable Company's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively. The items in the financial statements where these judgements and estimates have been made include.. Debtor Recoverabili The directors have reviewed the year*nd balances in respect of trade debtors due in less than one year and consider that all amounts are fvlly recoverable and that no further adjustment is required. Useful lives and residual value of fixed assets The directors have reviewed the usefvl lives and residual values of fixed assets as detailed in note 11 and consider that no adjustment is required. Income from grants and donations Restricted Unrestricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Grants and donations 115,840 296,214 412,054 405,338 Unrestricted funds 2024 2023 Standard fund GranVMEG 245,941 247,535 55, 887 48,000 Arts Council TPS Grant LBRUT Grant The Arts Society Richmond THMF 48,000 1,000 500 other donations 390 766 Peter Willan 350 350 Get Lucky Local 33 296,214 352,538 Page 22 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Restricted funds 2024 2023 Hampton Fund Clive Searby Fund Richmond Parish Lands Charity Bames Fund 16.545 25,700 15,909 1,800 26,000 25,000 1,800 Arts Council TPS Grant 115.840 52, 800 Income from charitable activities - unrestricted Unrestricted funds 2024 Total funds 2024 Total funds 2023 Tuition fees Activity fees from schools Wider opportunities Course fees cOn￿rt income Exam fees Music therapy 870,349 30,016 24,602 18,248 6,796 2,748 324,697 870,349 30,016 24,602 18,248 6,796 2,748 324,697 814,878 26,179 24, 725 20,451 47, 138 3,153 309, 185 1,277,456 1,277,456 1,245, 709 Investment income Restricted Unrestricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Bank interest re￿1vable 49 4,101 4,150 722 Page 23 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Total expenditure Activities undertaken directly 2024 Total funds 2024 Total funds 2023 Charitable activities 1,514,777 37,969 84,462 1,514,777 37,969 84,462 1,513,285 35, 768 80, 622 Governan￿ costs Raising funds 1,637,208 1,637,208 1,629,675 Operating surplus (total incoming resources less totsl resources expended) 2024 2023 Depreciation of tangible assets Operating lease rentals- land and buildings Auditors, remuneration Auditors, remuneration for non-audit work 3.843 68,924 9,250 7.375 3,869 68,342 9,275 6,625 Net movement be￿een the decrease in defined benefit pension liability and the gain on defined benefit pension scheme {9.000) 40,000 Page 24 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Comparative figures for the Ststement of Financial Activities Unrestricted Restricted funds funds 2023 2023 Total funds 2023 Income from.. Income from grants and donations Income from investments 352, 538 714 52, 800 405,338 722 Income from charitable activities 1.245, 709 38 1, 245, 709 38 Other income resources Total income 1,598,999 52,808 1,651,807 Expenditure on.. Raising funds Charitable activities 80, 622 1,458,904 80,622 54,381 1,513,285 Governan￿ costs Total expenditure 1,575,294 54,381 1,629,675 Net incomel(expenditure) 23, 705 (1,573) 22, 132 Other recognised gains and losses: Gain on defined benefit pension schemes Net movement in funds 865 000 865 000 888, 705 (1,573) 887, 132 Reconciliation of funds= Total funds brought forward (242, 580) 6,095 (236,485) Total funds carried forward 646, 125 4, 522 650, 647 10. Taxation The Charitable Company enjoys tax*xempt status as a charity under Section 505 Income and Corporation Taxes Act 1988. Page 25 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 11. Tangible fixed assets Musical Fixtures and instruments fittings Office equipment Total Cost or valuation At 1 April 2023 Additions 166,325 883 55,314 126,130 499 347,769 1.382 At 31 March 2024 167,208 55,314 126,629 349,151 Depreciation At 1 April 2023 Charge for the year 163.742 2,878 54.515 799 126,129 166 344,386 3,843 At 31 March 2024 166.620 55.314 126,295 348.229 Net book value At 31 March 2024 588 334 922 At 31 March 2023 2, 583 799 3,383 Those assets classified as musical instruments are used to fvrther the Charitable Company's objectives. The office equipment is used for administrative support. Those assets included under fixtures, fittings and equipment are furnishings and fittings purchased for the Briar Road office. 12. Debtors 2024 2023 Trade debtors Prepayments and accrued income 310,647 17.105 310,018 17,204 327,752 327,222 Included within Trade debtors is £11,778 (2023 £11,778) which relates to a rent deposit that is recoverable after more than one year. Page 26 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 13. Creditors: Amounts falling due within one year 2024 2023 Other taxation and social security Other creditors Accruals and deferred income 44,950 4,414 368,661 42,163 2,810 309,984 418,025 354,957 14. Deferred income 2024 2023 Brought ft)rward at 1 April 2023 Released in respect of prior years Deferred in current year Carried forward at 31 March 2024 293,514 307, 765 (293,514) (307,765) 348 971 293 514 348,971 293,514 Carried forward at 31 March 2024 Grant income Tuition and course fees Total 18,546 330 425 293 514 348,971 293,514 Income has been defe￿ed for the above events as they are all due to take pla￿ in the next financial year. 15. Defined benefit pension scheme asset 2024 2023 Pension scheme surplus 429,000 159, 000 Page 27 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 16. Retsined funds 2024 2023 Accumulated surplus at 1 April 2023 Retained surplus for the year 650,647 320,067 (236, 485) 887, 132 Accumulated deficit at 31 March 2024 970,714 650, 647 17. Anatysis of charitable funds Analysis of movement in unrestricted funds At31 March 2024 At 1 April 2023 Gains on pension Income Expenditure General reserve & total unrestricted funds 1580 386 1 577 733) 261 000 909 778 Name of unrestricted fund General fund Description, nature and purpose of the fund The 'free reserves, after allowing for all restricted funds. Anatysis of movement in restricted funds At 1 April 2023 Gains on At 31 March pension 2024 Income Expenditure Jane Wadeson Memorial fund 3,276 39 3,315 {9,455) 19,931 {9,091) 350 Hampton Fuel Allotment Clive Searby Fund Richmond Parish Lands Mandy Lee Scholarship Fund Bames Workhouse 16,545 25,700 15.909 10 (26,000) (5,769) (25,000) {906) (1,800) 1,246 1,800 Arts Council TPS Grant 55 886 60 936 Total restricted funds Total funds 115889 59 475) 1637 208) 650 647 1696 275 261000 970 714 Page 28 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Name of restricted fund The Jane Wadeson Memorial Description, nature and purpose of the fund The balance of monies transferred from the related charity in respect of a £3,000 capital donation, the interest thereon being available to be offset against fee remission. The balan￿ of monies donated by the Intemational Bar Association of £10,000, to fund expenses in connection with the musical education of children in need. The Mandy Lee Scholarship Fund Anatysis of movement in unrestricted funds At 1 April 2022 Gains on pension At 31 March 2023 Income Expenditure General reserve & total unrestricted funds (242,580) 1,598,999 {1,575,294} 865,000 646,125 Name of unrestricted fund Description. nature and purpose of the fund The 'free reserves, after allowing for all restricted funds. General Fund Analysis of movement in restricted funds At31 March 2023 At 1 April 2022 Gains on pension Income Expenditure Jane Wadeson Memorial fund Hampton Fuel Allotment Richmond Parish Lands 3,268 3,276 25,000 26,000 (25,000) {26,000) (1,581) Mandy Lee Scholarship Fund Barnes Workhouse 2,827 1,246 Total restricted funds 52 808 54 381 Total funds 236 485 1651807 1629 675) 865 000 650 647 Name of unrestricted fund Description. nature and purpose of the fund The balance of monies transferred from the related charity in respect of a £3,000 capital donation, the interest thereon being available to be offset against fee remission. The balan￿ of monies donated by the Intemational Bar Association of £10.000, to fund expenses in connection with the musical education of children in need. The Jane Wadeson Memorial Fund The Mandy Lee Scholarship Fund Page 29 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 18. Analysis of net assets between funds Anatysis of net assets between funds - current period Restricted Unrestricted funds funds 2024 2024 Total funds 2024 Tangible fixed assets Current assets 922 897,881 (418,025) 429,000 922 958,817 1418,025) 429.000 60,936 Creditors due within one year Provisions for liabilities and charges Total 60,936 909,778 970,714 Anatysis of net assets between funds - prior period Restricted Unrestricted funds funds 2023 2023 Total funds 2023 Tangible fixed assets Current assets Creditors due within one year Provisions for liabilities and charges 3,383 838, 699 (354, 957) 159, 000 3,383 843, 221 (354, 957) 159, 000 4, 522 Total 4.522 646, 125 650, 647 19. Reconciliation of net movement in funds to net cash flow from operating activities 2024 2023 Net income for the period (as per Statement of Finanaal Activities) 59,067 22, 132 Adjustments for: Depreciation charges Dividends, interests and rents from investments Increase in debtors Increaselldecrease) in creditors Movement on defined benefit pension schemes Gain on defined benefit pension schemes 3,843 14.150) {530) 63,068 1270.000) 261,000 3, 869 (722) (32, 222) (8,343) (825, 000) 865,000 Net cash provided by operating activities 112,298 24,714 Page 30 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 20. Anatysis of cash and cash equivalents 2024 2023 Cash at bank and in hand 631,065 515,999 Total cash and cash equivalents 631,065 515,999 21. Anatysis of changes in net debt At 1 April 2023 Cash flows At 31 March 2024 Cash at bank and in hand 515,999 115,066 631,065 515,999 115,066 631,065 22. Pension commitments During the financial year 2023-24 the Charitable Company's employees belonged to three pension schemes.. The Teachers. Pension Scheme ('TPS°), for academic and related staff, the Local Government Pension Scheme ("LGPS'), for non-teaching senior staff, managed by Wandsworth Council, and The Peoples, Pension Scheme ("TPP'), for non-teaching admin staff. Both the TPS and LGPS are defined benefit schemes, the pension costs for which are assessed in accordance with the advice of independent qualified actuaries. The latest actuarial valuation of the TPS was 31 March 2020 and the LGPS was 31 March 2024. The TPP is a defined contribution scheme, authorised as a Master Trust by The Pensions Regulator. Contributions of £26,895 were payable to the three schemes at the year*nd (2023 - £24,819) and are included in creditors. Teachers, Pension Scheme The TPS is a statutory, contributory, defined benefit scheme, govemed by the Teachers, Pensions Regulations (2010) and, from 1 April 2014, by the Teachers, Pension Scheme Regulations 2014. The regulations under which the TPS operates are the Teachers. Pensions Regulations 2014. These regulations apply to teachers in schools and other educational establishments in England and Wales maintained by local authorities, to teachers in many independent and voluntary-aided schools, and to teachers and lecturers in establishments of further and higher education. Membership is automatic for full-time teachers and lecturers and from 1 January 2007 automatic too for teachers and lecturer in part- time employment following appointment or a change of contract, although they are able to opt out. The TPS is an unfunded scheme and members contribute on a 'pay as you go, basis these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. Page 31 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Valuation of the Teachers. Pension Scheme Not less than every four years the Govemment Actuary ('GA°), using normal actuarial principles, conducts a formal actuarial review of the TPS in accordan￿ with the Public Service Pensions {Valuations and Employer Cost Cap) Directions 2014, published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest valuation of the TPS was carried out at 31 March 2020 and in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2023. The valuation report was published by the Department of Education in July 2024. The key elements of the valuation and subsequent consultstion are.. employer contribution rates, set at 23.68 %, include 0.08 /0 employer administration charge totsl scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for seNice to the effective date of £262,000 million, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222,200 million giving a notional past service deficit of £39,800 million an employer cost cap of 10.9 % will be applied to future valuations the assumed real rate of retum is 2.80A in excess of prices. The rate of real earnings growth is assumed to be 2.20/0. The assumed nominal rate of retum is 4.450/0 The next valuation of the TPS will be as at 31 March 2024, whereupon the employer contribution rate is expected to be reassessed. The employer pension costs payable to TPS in the period amounted to £188,587 {2023 £184,270). A copy of the valuation report and supporting documentation is on the Teachers, Pension website (httpS'.l￿.teaCherSpenSiOnS.C0.Uk). Under the definitions set out in FRS102 the TPS is a multi£mployer scheme. The Charity is unable to identify its share of the undedying (notional) assets and liabilities of the scheme. Accordingly, the Charity has taken advantage of the exemption in FRS102 and accounted for its contributions to the scheme as if it were a defined contributions scheme. The Charity has set out above the information available on the scheme and the implications for the Charity in temis of the anticipated contribution rate. Local Government Pension Scheme The LGPS is a funded, defined benefit scheme with assets held in separate trustee-administered funds. The total contributions for the year ended 31 March 2024 were £44,449 (2023 £42,951) of which employer's contributions totalled £35,531 {2023- £32,853)- The latest triennial valuation was carried out at 31 March 2024 and the following information was provided for disclosures under FRS102 as at 31 March 2024, by Barnett Waddingham LLP as part of their annual review of the scheme. 2024 £'ooo 2023 £'ooo The total recognised cost in the period was as follows: Current Servi￿ cost 26 55 Net interest Administration expenses {8) 17 Recognised in net expenditure 19 73 Page 32 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 2024 £'ooo 2023 £'ooo 2022 £'ooo Amounts recognised in the balance sheet were as follows: Present value of fiJnded obligations Fair value of fund assets (bid value) 11,844) 2,273 (1, 854) 2,013 (2, 788) 2, 122 (Deficit)Isurplus 429 159 (666) 2024 £'ooo 2023 £'ooo Changes in the present value of the defined benefit obligations were as follows: Opening defined benefit obligation Current service cost Interest expense Change in financial assumptions Change in demographic assumptions Contributions by scheme participants Estimated benefits paid net of transfers in Experience lossl(gain) on defined benefit obligation 1.854 26 88 2,788 55 72 (45) (25) (1,041) {117J (67) (61J 149 Closing defined benefit obligation 1.844 1, 854 2024 £'ooo 2023 £'ooo Changes in the fair value of the pension plan assets were as follows: Opening fair value of fund assets Interest income Actual return on plan assets (excl. interest income) Other actuarial {losses)Igains Administration expenses Contributions by employer incl. unfunded Contributions by fund participants Estimated benefits paid plus unfunded net of transfers in 2,013 96 2, 122 55 195 (137) (1) 28 (1) 33 (67) (61) Closing fair value of fund 2,273 2,013 Page 33 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 2024 £'ooo 2023 £'ooo The contribution of each major class of assets to the fair value of the total plan was: Equities Bonds 1,326 343 1, 137 323 Propety Cash Multi-asset fund 293 80 265 79 231 209 2,273 2,013 2024 £'ooo 2023 £'ooo The return on plan assets was as follows: Interest income 96 55 Actual return on plan assets (excl. interest income) 195 (137) Total return on plan assets 291 (82) 2024 2023 2022 The principal actuarial assumptions used were as follows: Discount rate 4.8Yo 3.3/ Expected rates of salary increases Expected rates of pension salary increases Expected rate of increase - RPI Expected rate of increase - CPI 3.25% 3.55/ 2.9/ 2.95°A 3.2/ 2.95Yo 2024 2023 2022 The mortality assumptions used for longevity lin years) on retirement at age 65 are: Retiring at the balan￿ sheet date Males - Females 20.8 21.1 21.6 23.3 23.5 24.3 Retiring in 20 years Males 22 22.3 23.0 - Females 24.7 25.0 25.8 Page 34 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 23. Staff Number of employees The average number of employees during the year was as follows: 2024 Number 2023 Number Raising funds Charitable activities Governance 98 114 105 121 2024 2023 Employment costs Wages and salaries Social security costs Total pension costs 1,135,553 1,077,863 65,069 61,756 224 118 217 123 1.424,740 1,356, 742 One employee, including directors, earned more than £60.000 during the year (2023 - 1). No expenses were reimbursed to directors during the year (2023 - £Nil). Directors. remuneration: The number of directors receiving remuneration during the year amounted to nil {2023- nill. 2024 2023 Remuneration Company pension contributions to defined benefit schemes The number of directors for which retirement benefits were accruing under defined benefit pension schemes amounted to nil (2023 - nil)- Key management personnel Key management personnel includes all directors and a number of senior staff who together have authority for planning, directing and controlling the activities of the Charitable Company. The total compensation paid to key management personnel for these ServI￿S was £249,817 (2023 £235,751) Page 35 RICHMOND UPON THAMES MUSIC TRUST COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 24. Related party transactions Except for remuneration paid to key management personnel disclosed in the note 23 and the donation of £350 from Peter Willan (director), no further related party transactions took place. Page 36