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← Universal Music UK Sound Foundation

2024-07-31-accounts

COMPANY REGISTRATION NUMBER 05062390

UNIVERSAL MUSIC UK SOUND FOUNDATION

FINANCIAL STATEMENTS COMPANY LIMITED BY GUARANTEE

31 JULY 2024

Charity Number 1104027

UNIVERSAL MUSIC UK SOUND FOUNDATION

FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

CONTENTS PAGES
Advisors and administrative details 1
Trustees' annual report 2to11
Trustees' statement of responsibilities 12
Independent auditor's report to the members 13 to 15
Statement of financial activities 16
(Incorporating the income and expenditure account)
Balance sheet 17
Notes to the financial statements 18 to 24

UNIVERSAL MUSIC UK SOUND FOUNDATION

ADVISORS AND ADMINISTRATIVE DETAILS

REGISTERED CHARITY NAME Universal Music UK Sound Foundation
CHARITY NUMBER 1104027
COMP ANY REGISTRATION NUMBER 05062390
REGISTERED OFFICE 4 Pancras Square
London
N1C4AG
TRUSTEES Laura Arowolo
Charles Ashcroft (resigned 19 March 2024)
Adam Barker (Chair)
YolanDa Brown OBE ( appointed 3 August 2023)
Paul Gambaccini (resigned 12 November 2024)
Keith Harris OBE
JoHibbitt
Leslie Hill
David Hughes MBE
Rupert Perry CBE (resigned 10 October 2023)
Tony Wadsworth CBE
AUDITOR Cooper Parry Group Limited
Statutory Auditor
Cubo Birmingham
Office 401,4Floor
Two Chamberlain Square
Birmingham
B33AX
BANKERS Barclays Bank pie
75 Kings Stre t
Hammersmith
London
W69HY
SOLICITORS BDP Pitmans LLP
One Bartholomew Close
London
EClA 7BL
INVESTMENT MANAGERS Evelyn Partners
45 Gresham Stre t
London
EC2V7BG
Rathbone Brothers Pie
8 Finsbury Circus
London
EC2M7AZ

1

UNIVERSAL MUSIC UK SOUND FOUNDATION

TRUSTEES' ANNUAL REPORT

YEAR ENDED 31 JULY 2024

The trustees present their statutory report together with the audited financial statements of Universal Music UK Sound Foundation (the "Charity" or the "Foundation") for the year ended 31 July 2024. This Trustees' Report, required by the Charities Act 2011, is also the Directors' Report prepared in accordance with the Companies Act 2006. This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies' exemption including the exemption from preparing a strategic report.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Charity's Governing Document

The Charity is a company limited by guarantee incorporated on 3 March 2004 and registered as a charity on 28 May 2004. The Charity is governed accordingly by its Memorandum and Articles of Association.

Trustees

For the purposes of company law the individuals listed are both charity trustees and directors of the Charity, and are appointed in accordance with the Charity's constitution. Details of the trustees who held office during the year and thereafter are as follows:

Laura Arowolo

Charles Ashcroft (resigned 19 March 2024) Adam Barker - Chair

YolanDa Brown OBE (appointed 3 August 2023)

Paul Gambaccini (resigned 12 November 2024)

Keith Harris OBE

Jo Hibbitt Leslie Hill

David Hughes MBE Rupert Perry CBE (resigned 10 October 2023) Tony Wadsworth CBE

Treasurer

Duncan Bratchell

Name of Senior Donated Employee

Janie Orr MBE (Chief Executive)

Methods of Recruitment and Appointment of Trustees

Under the constitution, the maximum number of trustees is 12 and the minimum number is 4 (although the members of the Charity can amend these numbers at a general meeting). Trustees are elected by a simple majority of all the trustees entitled to attend and vote at any board meeting. Each trustee is appointed for a 3 year period commencing with their appointment and ending at the first Board meeting held on or after 1 September in the third year. A trustee is eligible for reappointment following each 3 year appointment.

The Charity aims to retain and recruit a diverse and active trustee board, with a broad range of skills and experience. Candidates may be selected from a pool of music industry and teaching talent already known to the trustees, or may alternatively be sought through advertisement, in each case in accordance with a comprehensive recruitment policy which is reviewed by the trustees every two years, most recently at the October 2024 Trustees meeting

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UNIVERSAL MUSIC UK SOUND FOUNDATION

TRUSTEES' ANNUAL REPORT (continued)

YEAR ENDED 31 JULY 2024

Methods of Recruitment and Appointment of Trustees ( continued)

In the case of all appointments: ­

(c) prospective trustee(s) will be provided with an information pack on the Foundation including:

( d) new trustees will be offered an initial induction as well as the more formal periodic training which all trustees receive.

Chair

Adam Barker was reappointed chair on 8 March 2022 to serve for a further 3 year term.

Training provided for Trustees

The Foundation organizes periodic training for the trustees. The trustees and the Foundation's staff received detailed training from our independent legal advisors in July 2021. This training session focused on a review of the Charity's governance arrangements based on the principles in the Charity Governance Code, further details of which are set out in the "Charity Governance Code" section below.

How the Charity is managed

Throughout the year the Charity has been managed by a Chief Executive and two part time a istants whose services were donated by Universal Music Group. The Charity has also benefitted from office and administration services provided by Universal Music Group International Limited through the Service Agreement as referred to in the "Details of related parties" section below. The Charity has not employed any staff during the year. Any Charity staff referred to elsewhere in this report were employed by Universal Music Holdings Limited.

How Decisions are made

The trustees have three scheduled formal meetings each year, for which agendas and supporting papers are sent out in advance. Additional meetings are organized if required. Matters requiring decisions between the scheduled meetings are dealt with by email, with ratification at the next scheduled meeting, and by written resolutions of the trustees. There is an Audit and Finance Committee which meets when appropriate and at least once a year to review the trustees' annual report and financial statements and the Charity's investment management arrangements.

A rolling Grants Committee reviews applications for financial support and puts forward recommendations for the full board of trustees to consider at their meetings. Where trustees are involved with an organisation which receives a grant or bursary from the Charity, they do not participate in the grant or bursary approval and this is also noted in the Foundation's conflicts register. Immediately after the deadline for applications, a meeting is fixed with the Chief Executive and two trustees (trustees rotate membership of this committee) where all applications are reviewed and recommendations made.

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UNIVERSAL MUSIC UK SOUND FOUNDATION

TRUSTEES' ANNUAL REPORT (continued)

YEAR ENDED 31 JULY 2024

How Decisions are made (continued)

Each year colleges receiving bursaries from the Charity send details of nominated students to the Charity. The nominations, which must comply with pre-agreed criteria set by the Foundation, are then circulated to the full board of trustees for review and, if agreed, approval.

Charity Governance Code

The trustees are aware of the Charity Governance Code, as updated in December 2020, which sets out the principles of recommended practice for good governance within the sector. The trustees have reviewed the Charity's governance arrangements against the principles within the Code and believe that, taking into account the size and nature of the Charity as a grant maker, the Charity is operating in line with the fundamental principles.

A new code of conduct for trustees was approved at the October 2024 Trustees meeting and will be reviewed every 2 years.

The trustees will continue to keep the Charity's governance under periodic review using the Code as a point of reference.

PUBLIC BENEFIT STATEMENT

The trustees continue to comply with their duty to have regard to the Charity Commission's guidance in exercising their powers and duties and confirm that they have referred to the Commission's guidance on public benefit when reviewing the Charity's aims and objectives and in planning future activities and setting the grant making policy for the year. The descriptions of the trustees' objectives and activities set out below clearly demonstrate that the Charity's objectives are entirely charitable and that the public benefit requirement is being met.

AUDITOR

The Charity has dispensed with the requirement to appoint the auditor annually under section 485 of the Companies Act 2006. Cooper Parry were formally appointed on 14 August 2023.

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

Objects of the Charity

The aim of the Charity as defined by its Memorandum and Articles of Association is to support music education for young people in all its forms.

Funds are distributed in the following ways:

The trustees are pleased to report that the activities undertaken over the period have continued to support the Charity's aims and objectives to assist young people through the provision of bursaries and grants as described in this report.

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UNIVERSAL MUSIC UK SOUND FOUNDATION

TRUSTEES' ANNUAL REPORT (continued)

YEAR ENDED 31 JULY 2024

Schools Project

The trustees continue their previous practice of offering funding to the Foundation's partner schools for a year-long music project to be spent on supporting one or a combination of the purchase of music resources (instruments and equipment) for the music department, Hardship Funding to support lessons for small groups of or individual students of limited financial means and also.wider Opportunities programmes (Whole Cla InstrumentalN ocal Tuition), Key Stage I music involving training non-specialist music teachers in the feeder primary schools a ociated with the sponsored secondary schools and Teacher Training/Workshops.

ACHIEVEMENTS AND PERFORMANCE

Summary of Activities

During the year the Foundation made grants totalling £405,187 (2023: £397,949) to individual and school applicants. Please see note 12 for the full disclosure of the amounts approved/ unclaimed during the year. The total number of awards made in the year was 661 (2023: 626) which was up 35 from the previous year. These grants which the Charity provides are demand led as well as being based on the applications received meeting the Foundation's criteria and the total grants made being within the budget set by the trustees; fluctuations in grant funding are therefore to be expected.

Twenty-three of the Charity's partner secondary schools participated in the annual schools' project for which a£138,000 budget was approved by the trustees. The Charity continues to carry out extensive monitoring of this project, now in its fifteenth year, to ensure that funding is used appropriately. End of project evaluations are submitted and the questions updated year on year to capture details as to whether future offers need to be amended. The primary uses of our funding continue to be the hardship instrument lesson support costs and vital resources for the music departments as family outgoings continue to be impacted by increased cost-of-living.

The Charity continues its support of tertiary education through annual bursaries. Bursaries at the organisations listed below were granted for 3 years in July 2022. Our bursaries are subject to adherence to the student nomination criteria specified by the Charity and to the trustees' approval of successful applicants. During the year a total of £65,000 (2023: £65,000) was paid to the following colleges and organisations:

UNIVERSAL MUSIC UK SOUND FOUNDATION

TRUSTEES' ANNUAL REPORT (continued)

YEAR ENDED 31 JULY 2024

ACHIEVEMENTS AND PERFORMANCE (continued)

Decca Bursary

The De a Bursary is a restricted fund to inspire and encourage a new generation of classical musicians and composers. The Decca Bursary organized a second year of classical music workshops (2 in London, 2 in Birmingham and 2 in Leeds) which were arranged in conjunction with the Decus Ensemble. Participating schools with a high percentage of minority ethnic pupils were selected who also had limited or no classical music tuition. The music repertoire included in the workshops was from black cla ical composers. In addition to these workshops each school was offered £750 funding to spend on cla ical instruments, learning resources and entrance tickets for music and dance festivals.

No fundraising has b n carried out during the last year.

Measures of success, and how the measurement information is obtained

In addition to the monitoring and evaluations referred to above, the Charity encourages those it supports to remain in contact and to provide regular updates. The Charity continues to receive annual reports, website stories and GCSE results from its sponsored schools, thus enabling it to monitor performance and a ess the impact of the financial support provided as well as informing our grant decision making for the following year.

Financial Review

The principal funding sources for the period were investment and donations income. The market value of funds under investment on 31 July 2024 was £7,082,083 (2023: £6,933,125), an increase of£148,958 or 2% reflecting movements in the investment portfolio as well as the grants and awards paid during the year totaling £405,187 (2023: £397,949). During the year a total of £65,000 (2023: £65,000) was paid to bursaries in line with the 3-year bursary scheme, with no additional amounts (2023: an additional £5,000) paid from the restricted fund. The trustees are satisfied with the performance of the investment portfolio given market conditions during the year. Please see note 15 for details of the movement in the valuation since year end.

The trustees are grateful to Universal Music Group International Limited for its funding of the Charity throughout the year through the Service Agreement referred to in the "Details ofrelated parties" section below.

The net income for the year was £123,945 (2023: net expenditure of £472,498) and the net assets as at 31 July 2024 were £7,077,006 (2023: £6,953,061).

Please refer to 'Summary of activities' on page 5 for a review of our grantmaking activity in the year.

PLANS FOR FUTURE PERIODS

The trustees will continue to monitor their funding schemes. With both music education and household budgets remaining under pressure demand for the Foundation's funding has increased and we expect this trend to continue.

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UNIVERSAL MUSIC UK SOUND FOUNDATION

TRUSTEES' ANNUAL REPORT (continued)

YEAR ENDED 31 JULY 2024

CHANGES TO THE SERVICE AGR MENT WITH UNIVERSAL MUSIC GROUP INTERNATIONAL LIMITED

The Foundation has continued throughout the year under review to benefit from the Service Agreement with UMGI as its corporate sponsor as described under the "Details of related parties" section on page 1 1 . However, at the end of the year important changes to these arrangements were agreed, as described below, some of which were implemented on l August 2024. Next year's report will therefore reflect those changes.

The Service Agreement as in force prior to these changes dates from 2004 when the Foundation's corporate sponsor was EMI Group pie. Subsequently UMGI became the Foundation's corporate sponsor following its acquisition ofEMI Group's recorded music busine in 2012.

In May 2024 UMGI informed the trustees that it wished to restructure its relationship with the Foundation. The restructuring would have involved: the redundancy of the Foundation's three staff, including the chief executive, who as described elsewhere in this report were all employed by the Universal Music Group; the outsourcing of the day to day management and administration of the Foundation's operations to a third party organisation; and closer integration of the Foundation into Universal Music Group's global philanthropy operations.

After detailed discussions with UMGI and careful consideration of the potential advantages and disadvantages, the trustees concluded that the proposed restructuring was not in the interests of the Foundation or its beneficiaries. An alternative approach was therefore agreed with UMGI under which the staff would be employed by the Foundation from 1 August 2024 and UMGI would continue its financial and other support of the Foundation until 31 July 2027 when the Service Agreement would terminate. These changes were reflected in an amended Service Agreement and on l August 2024 the three staff became employees of the Foundation.

Further details of the revised arrangements will be disclosed in next year's report and accounts.

GOING CONCERN

The Charity's grant funding activities are generally funded through the investment portfolio held. The trustees of the Charity have considered the Charity's position and have determined that the Charity has sufficient funds to continue to operate as a going concern for a period of twelve months from the date of signing.

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UNIVERSAL MUSIC UK SOUND FOUNDATION

TRUSTEES' ANNUAL REPORT (continued)

YEAR ENDED 31 JULY 2024

RESERVES POLICY

The Charity's funds as at 31 July 2024 were £7,077,006 (2023: £6,953,061), of which £15,637 were restricted (2023: £45,086) for the Decca Bursary as detailed on page 6 of this report. Further detail is set out in note 13 to these accounts.

The unrestricted funds are predominantly held in investments. These are readily convertible to cash to enable the trustees to fulfil the objectives of the Charity. The policy is to hold sufficient investments in order to generate investment income and to support the charitable activities of the Foundation. The majority of overheads are borne by the Service Agr ment with UMGI. Every grant round, the trustees take into account the reserve situation. The only extended commitment of the Charity is the 3-year bursary scheme amounting to £65k annually (renewed in July 2022), easily covered by the investment funds.

The reserves held as at year-end are sufficient to comply with the reserves policy.

In light of the ongoing operational support available through the Service Agr ment (referred to in the "Details ofrelated parties" section below) and the significant investment funds held by the Charity, the trustees consider that at this time there is no requirement to set aside funds to cover these or other costs. The trustees review this policy each year (last reviewed 23 October 2024) and will, in particular review the position when the Service Agreement comes to an end.

RISK MANAGEMENT STATEMENT

In accordance with the Charities Statement of Recommended Practice, the trustees regularly review the Foundation's risk exposure and maintain a risk register. A description of the principal risks and uncertainties facing the Foundation, as identified by the trustees, together with a summary of their plans and strategies for managing those risks, is set out below.

Risks connected with Grant Making

The trustees are aware that they have a duty to take all reasonable steps to ensure that the grants the Charity makes accord with the Foundation's objectives and are used for the intended purpose by the selected recipients. To this end the trustees seek detailed information from applicants for funding, with each individual applicant being asked to provide:

All references from individual applicants must be provided by a qualified music teacher and for school applications there is an option for headteachers to include an additional statement in support of their school. All individuals over the age of 16 are also asked to provide a letter from their school/college/university confirming the place of study, course, whether they are a full time home student, and start and end dates of the course. Grants are approved at the trustees' meetings and acknowledgements are sought from the recipients . All recipients are either schools, individual music students with reliable references or music teachers. Payments are made only to schools, reputable music instrument suppliers or music teacher course suppliers, except that where an applicant proposes to buy an instrument from another individual, the Charity first obtains written confirmation from each party that they are not related or connected in any other way.

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UNIVERSAL MUSIC UK SOUND FOUNDATION

TRUSTEES' ANNUAL REPORT (continued)

YEAR ENDED 31 JULY 2024

RISK MANAGEMENT STATEMENT (continued)

Safeguarding = es

es

Whilst the trustees consider that the Foundation's risk of safeguarding i ues is very limited, they have nevertheless created a fonnal Safeguarding policy with a view to ensuring a safe and appropriate environment for children and vulnerable adults who might come into contact with the Foundation, its staff, trustees and others representing it. This policy is reviewed by the trustees every 2 years. The Foundation's three members of staff have all completed a basic DBS check (a criminal record check carried out by the Disclosure and Barring Service; a non-departmental public body sponsored by the Home Office).

Investment Risks

The potential risks posed by the perfonnance of the Foundation's investment portfolio include whether it generates a sufficient return to cover annual expenditure in the short-term, and the risk of decreases in the market value of the portfolio in the longer-term, which could restrict the Charity's ability to make grants.

The steps taken by the trustees to manage these risks are described under the heading "Investments" on page 8 of this report. In addition, the Foundation's investment managers, Rathbones and Evelyn, are subject to detailed regulatory requirements and have extensive internal compliance procedures in place. The trustees undertake periodic formal reviews of their investment policy and the investment management arrangements.

Financial Risks

The trustees are aware of the potential risks a ociated with the financial management of the Charity. Accounting and administration of the Charity is carried out by Universal Music Group International ("UMGI"), which provides the necessary support from its Group Finance, Secretarial and other relevant functions. An ongoing dialogue is maintained between the Chief Executive and a UMGI financial representative. Any cause for concern is brought to the attention of the Treasurer who communicates with the trustees. Under the Service Agreement referred to below UMGI has specific contractual obligations to the Charity regarding the provision of its services. The trustees are satisfied with the financial services provided by UMGI and its assurance that all the financial records are securely maintained with appropriate financial controls.

Authorisation to execute any payment or banking instruction requires two signatures or two electronic approvals. Five trustees, the Chief Executive and the Treasurer are authorised signatories. Cheques/electronic payments and other payment instructions up to £5,000 may be executed by the Chief Executive and the Treasurer together; these are then reported to the next trustee meeting. . The Foundation has now moved to online payments with the Chair, the Chief Executive, one trustee and the Treasurer approved for online banking. The Chief Executive is authorised to enter into procurement and any other agreements within financial controls set by the trustees up to a limit of £15,000 per agreement to allow her to carry out the responsibilities of the Chief Executive.

Full accounts are prepared annually and audited by the external auditor. They are reviewed at a formal meeting of the trustees as well as in greater detail by the Audit and Finance Committee. In addition at each trustee meeting the Treasurer reports on the Charity's financial position.

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UNIVERSAL MUSIC UK SOUND FOUNDATION

TRUSTEES' ANNUAL REPORT (continued)

YEAR ENDED 31 JULY 2024

RISK MANAGEMENT STATEMENT (continued)

Risks associated with UMGI Service Agr ment

As described above and elsewhere in this report, throughout the year under review the Foundation has had the benefit of a Service Agreement with UMGI for the provision of accounting, website hosting and data processing, administrative and insurance services and office accommodation, as well as the provision ofa ChiefExecutive and a istants. Since UMGI's services under the Service Agreement are donated to the Foundation, the agreement is a significant continuing benefit to the Foundation. As referred to above under the "Changes to the Service Agreement with UMGf' section, the agreement will expire on 31 July 2027. The trustees have carefu y reviewed the impact on the Charity and have already taken steps to streamline future administration costs. Strategies potentially to mitigate the impact of the loss ofUMGI's support in 2027 have already been identified and will be pursued over the period to 3 I July 2027.

Risks associated with Processing o(Personal Data

Following the coming into force of the General Data Protection Regulation and associated changes in data protection legislation, the processing of personal data provided by grant applicants and others is an increasingly impor area for the management of risk. The Charity has adopted detailed policies and procedures which are designed to a ure compliance with the GDPR's data protection principles, including the requirement for a lawful basis for proce ing, the information to be given to data subjects by means of the Charity's detailed Privacy Notice, the retention and subsequent deletion of personal data, the security of data held, the reporting of data breaches, the protection of data subjects' rights and the Charity's ability to demonstrate its compliance with the data protection principles. The Foundation's policy and procedures document was updated in relation to Brexit and the incorporation of the Regulation into UK law with the new document being approved by the trustees at their July 2022 meeting. As at the date of approval of this report the Charity is not aware of any data breaches having occurred and no subject data requests have b n received.

The trustees believe that all current areas of key risk have been considered and that reasonable precautions have been taken to avoid loss arising from the identified risks.

POLICIES FOR A WARDING GRANTS

The Charity's grant policy was reviewed by the trustees at their July 2024 meeting and approved. Key parameters for support are described above under the 'Objects of the Charity' section (page 4). The trustees limit grant making to the UK and Eire and the maximum that can be applied for by either individuals or schools is now £1,000 (£1,500 in the year under review and previously).

INVESTMENTS

The investment managers appointed by the Charity continue to present to the trustees or to the Audit and Finance Committee at least twice each year when the performance of the Charity's portfolio is reviewed, discussed and considered in detail along with the investment strategy.

Monthly valuations continue to be sent to the Chief Executive and Treasurer as well as each of them continuing to have online access to statements of the Foundation's funds.

The key objective of the investment strategy is for the investments to produce income and capital growth so as to meet the financial commitments of the Charity in each year. There are formal agreements in place between the Charity and each investment manager which cover, amongst other matters, the Charity's investment policy and certain limitations on the managers' investment powers.

The trustees continue to receive both face to face and printed updates from each manager so as to closely monitor performance. As part of their monitoring of the managers' performance and the most appropriate investment objectives, the trustees have instigated periodic stress testing of the Foundation's funds to show a range of outcomes against different levels of a et performance and of grant and other support expenditure.

10

UNIVERSAL MUSIC UK SOUND FOUNDATION

TRUSTEES' ANNUAL REPORT (continued)

YEAR ENDED 31 JULY 2024

FUND RAISING

The Charity did not carry out any fundraising during the year.

DETAILS OF RELATED PARTIES

The Charity has one wholly owned subsidiary, MSFC Limited (company registration number 03287591, registered address 4 Pancras Square, London NlC 4AG), which is incorporated in the UK. MSFC Limited has entered into a deed of covenant whereby it covenants its taxable profits to the Charity. MSFC Limited had no material transactions in the period under review. There were no transactions between MSFC Limited and the Charity in the current or prior year. The balance owed by the subsidiary is shown in note 11 .

There is a Service Agr ment between the Charity and UMGI, whereby UMGI has provided, on a free of charge basis, a Chief Executive and support staff and the necessary offices for the Charity, as well as website hosting and data processing, insurance and various a ounting, administrative and other support services. The remuneration of key personnel has therefore been set by UMGI alone, not by the Charity. The insurances provided through UMGI include Directors and Officers insurance for the trustees. UMGI also donates £10,000 to the Foundation annually.

As described above under the "Changes to the Service Agr ment with UMGP' section, on 31 July 2024 the Charity entered into an amended Service Agreement with UMGI the changes under which took effect from 1 August 2024, including the three members of staff becoming direct employees of the Charity as of that date. The Service Agr ment will terminate on 31 July 2027. Discussions are ongoing regarding the revised arrangements and these will be included in next year's report.

In July 2019 the Foundation entered into a formal agreement with Decca Records, part of Universal Music Group, for the creation, operation and administration of the Decca Bursary (a restricted fund of the Foundation).

Approved by the trustees on 18 March 2025. i

And signed on their behalf

11

UNIVERSAL MUSIC UK SOUND FOUNDATION TRUSTEES' STATEMENT OF RESPONSIBILITIES

YEAR ENDED 31 JULY 2024

The trustees (who are also directors of Universal Music UK Sound Foundation for the purposes of company law) are responsible for preparing the Trustees' A seatedfide groper The Hinesteas" Aneel ual Report and the financial statements in accordance with applicable law and Wiestend tke Doeniad etunommnlt)fi aeecedance willl applile e andls United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic oflreland".

Company law requires the trustees 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 altho sings of aliilrs c0 tip cludiltilile semmpemy ied of the invest: eso wild pplietion of rrecwerm, , including the intludliny IIe income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees aa are required to: Ee oe /

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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WAIWERSAY UNIVERSAL MUSIC UK SOUND FOUNDATION MUS)C UY BOUWe Peer INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSAL MUSIC WH UK SOUND FOUNDATION SOUNE )OUANRAGLON

ype Opinion

Opinion

We have audited the financial statements of Universal Music UK Sound Foundation ("the charitable company") for the year ended 31 July 2024 which comprise the Statement of Financial Activities (incorporating the income and expenditure socemunl), account), the Balance Sheet and the related notes, including a summary of significant accounting policies Die Baclauce Theet and the reinted crite, inetd, nm exmeniery olf aiguiikesen? eomuittrae publica, . The financial Tike fitwiméctal reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Suorionie, Standards, including Financial Reporting Standard I 02 "The Financial Reporting Standard applicable in the UK and fnetag Mieutel Expoviiiag Dumebent 102 iFoeed Fagerteg fade! wgliebe my te 1 md Republic of Ireland" (United Kingdom Genera y Accepted Accounting Practice).

In our opinion the financial statements:

Baal Basis for opinion fir gphition

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the Sonovind financial statements section of our report atest aestiog of sera_ent. . Ws We are independent of the company in accordance with the ethical requirements aw inet rere hit nga that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we Seve have obtained is sufficient and approp oltetosd i: cottsiut el eppregids riate to p te poovide rovide a b a Beals asis for our opinion. er eee ce,

(Genelielmea Conclusions relating to going concern subtle to gsi eazocm

In In auditing the financial statements quilting the Bineneta] piston, , we have concluded that t pee Diners geuidlailedl Din She he t Dagtees" rustees' use of the going conce use of Ur perio, carnicwnets rn b eerie asis of ac af! ganonainitliags counting in bo 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 Based eo the -work we Reve petfoersod, ee berry ot Meritt sy zetia) qmcutndttes robtteg ty erendn ag ooniiiane th tart, at, individua inilheidgedly lly or co vor emdlecthvedy, llectively, may ang cas met t si slyes gnificant doubt on the ch theme Coat oo line chharighle aritable company oumnpamy’s 's abili ahtliy ty te to continue as a going oonthensax a prctag concern for a period of at least twelve months from when the financial statements are authorised for issue. her Our responsibilities and the responsibilities of the t peeporetfiiitics pe Ger enepem F0Tes of Die ru rates stees w with ith respect to goin raged fo gees g conce soem rn are d em deperTbiil escribed in the relevant tr. the rolement sections of this report.

CoPoer Other information fetter

Other information

The trustees are responsible for the other information. The other information comprises the information included in the report report of the t of dae tinteer, rustees, other than t offer hen Gi he finan fone! cial s ceticmeee tatements and our auditor ae! oe pedis’: 's re pect port Seen, thereon. Our er optere opinion on the o@ So fi fieriel nancial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of a urance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing ikosmetke wit oe aodt of he freed! cet oeee, as ceed 4 marl he oder Hebsewim aeel, in dering so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or *ypninett apparent material misstatements aideiol mietfomends, , we are re we om reget quired to dete wo dsigeeion rmine whether t whelbrs Gory here is a kt 2 m mnie] aterial misstatement in the itedbs f= fi Bopeiel nancial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

Wo We have nothing to report in this regard. Leib secthiteg, tor empyet in thee cogent

13 3

TTR!) UNIVERSAL MUSIC UK SOUND FOUNDATION WOMANS UNS SIM LIRA TL INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSAL MUSIC PEPE AT AUIS RSOOraT Te VE MSS OP WLS Were Cite, UK SOUND FOUNDATION SAUERCe A OE (eouniithamreenty (continued)

Opinions on other matters prescribed by the Companies Aet 2006

‘DevateSotnrs Matters on which we are required to report by exception et vel ee ones vey grange ii reopagel Dy escort ai

ta In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of fw Hight tive the audit as, , we we have not identified material misstatements in the directors eofRewer com getecw lindgsbeatifiedany!enotete)emdetiemtingmbssliteermts of Oe cherishestn te dhhicnct compar ' and trustees' annual report eetexe!o e itneees”orviuet ect rot.atid . ty Ses eres Cf Wi We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to Lewsey fo Sper In oped of ie Tein mative bo rolethiets ay spe ee Qe At AG pogerione report to you if, in our opinion: rept e* yorntif in or opinion: ur f

Che Our ob objectives jectives are to obtain reasonable ass nm to chtainzesarmifily eegmamo urance a nbonl bout whether the fin wheter ts orelal ancial statemen stint ts as ag a whole are free c tinh: tre ee fr fey om mate mated) rial miss riscintesat, tatement, wh willie ether due to due to fra Sell ud or error, and to issue an auditor's report that includes our opinion. Reasonable saturn a urance ip is a hi lipid gh le hovel vel o of f ass zcxmesene urance but is not a cxlies eye,de pest se n h gu gpererees00 arantee that an aud eco ansfied quill’ er welt it conducted in accordance with popegrenbordealthet ineltsteeBo gongrteenecor epee,wilt IS WLde As Receten (UK) ERC) w i ill lsl nhewye always detect a mate dele! o matetiel rial misstatement whe wreteietestshen n it e rocket. xists. Milpetetenetvs Misstatements can arise from fraud or error and are considered tmayded material if, individually or in the aggregate, they could reasonably be ex cen pe ecipy cted to in Brat fl feed uence oe the ec crvur o andl nomic dec ate ooutiderndl isions of ees users taken on the b ties2 onSyfif e okenllybesks asis of these financial st of Granein enfineaci cag e ds,sintenemett atements Gaey cowl’) . pencnidily bs ezpeeted wo infhesee the exavens: dyciiom of Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line whher with o pliaw ur r pepamihilgice, espo tari nsibilities, pia gutfend outlined a Sr operatessheers, bove, to detect material misstatements in respect of i yo detest nenteredureererabesnyIp e setned CR rregularities aT , including fraud. The ixtent extent to io Weick which our p one mtotedecen rocedures are err ca nabs pable of detectin of dieting g trmegeter, irregularities, in Ecladny cluding fra fiend ud is detailed below: aflo SongGe e letifre,diut heirocbaeg al. O horamesient ur assessment focused on Scere om k hey ey laws and bewe and re mpuistions gulations the charitable company fio clmerttilhh: sneepess has Pes t oo o comply with and a scempiy wilt anil prea reas of ofthis the financial firmicial state slistroohans ments we a wre isicoenanl ssessed a sat s Dine: being siuine more s eee! usceptible to misstatemen s toeen, t. ‘Mines These key laws and regulations in lo bow ond cxailictine: cluded but were not limited Theltal to[>] poamiisece compliance with the with dae C Compunlen ompanies Act Ad 2006 2M, , Cha Chuutitien rities A Acc ct 2 ZO], 011, tax tieatiew ation legislation Ingiti , bhudtvsti data protection and Gum e potiond Wedion, ver ooaxl employment legislation.

i4 14

DRIVERS UNIVERSAL MUSIC UK SOUND FOUNDATION AN) WUE WY SAMS) PLIESNN INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSAL MUSIC [ASE AYA T SAWN ETD EME URN (TENURE RESALE Cie UK SOUND FOUNDATION SILLS Cale fieeestiacenty (continued) fowttner Auditor's responsibilities for the audit of the financial statements (continued) ys pagpenn nites Joa the net et Gur Toei’ shettemeits (eatin

Whilst considering how our audit work addressed the detection of irregularities Mist comelileelipg Were cur uullit work etldiromui) the detection of Sezai , we also considered the likelihood of was alee comedies wie Milooll ac!

detection based on our approach dutmtionBestil on ecooppgeeih . TiegriStes Irregularities arising from fraud are inherently more difficult to detect than those arising fies from error mez. . wieleg chon Rauthinvs holsecendife roc: fienlk to detoce tiem thane acing

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities Homme , including those leunlirge leading to a material misstatement in the financial statements o esco fisromcerSheet el! cinetiemea Hees e thofCheoe H e enecinled Sessiatettenteceor r thet uecrinn non-compliance with regulation. This risk increases the we ien e t ieeewht mpwiete—08 iret Msee,lake Sed dw e ven, Stlie ee more that compliance with a law or regulation is removed from the events and transactions reflected in the financial sremersts Dine) sceapysUnites sep) io Taare ‘ene tenn SEG ES ruc ee hoe carve “ida Mlomntarsteedtcgnens ‘the Matin ea i Sitar

statements, as we will be less likely to become aware of instances of non-compliance Priston,te wr eel] Be dee SteleSyice . The risk is also greater regarding inequities. irregularities occurring due to oncumeng Gee @ frau feowt d ra mies ther than error teeaesare,of , iano: as fraud involves intentional concealment @ Geel ofpeo wocoplbewsan! ep, Tee tecoezc k eant,ft slo , fo greeSyer;, rgery, co mpaetiinegboxe, llusion, omission, or misrepresentation. J A furth Mittbes er description of our res Greed] irtian olf eres rye po tistics nsibilities for the audit of the finan Tiny Alte: caalllt ef Cis Wii vnunet) cial statements is located on the oreeteererere De Yee con. Wits Ween Financial R seppit eport tieiae ing

C Cured ouncil's website ww badte at: w ots ee .frc fee .org.uk/auditors responsibilities onion ae, . This Tay description fo Geacription fun rms pa weet rt of our auditor of our auine'y 's re epost. port.

(eal Use of our report one rupert

Wits This re copped port is made is rept s embeds olely to the charitable company Sp the clieelistils Qunpeiy's 's members seem, , as a me a bo beh, dy, in $e ac ee cordance with teos wilh C Uiiepies hapter 3 2 of of Put Part 16 of 1of th ie e Comp Competes anies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted ley by law vembow, , wet we do not acce GogiAcctmot S006.smoot p Charppb t or a of iniaumion ttre ume responsibili mepomdbiinyMins binietis reg ty to anyone other than the charitable company and the charitable aeesexyons can diofsz a l weesl cdldvs finolilis taepOien obtartiolile:compery Fis coasmaty TivteedGo certsite"ie thirenlemscepec r meaosmin oneuyaog’c company's member mrandxax s as 90 a 6 bo body, dy, for our audit work foe oer elt wor? , fo Eu r this repo Cds open, rt, or ot fo Ev r the opinions we have the oper em bere fo Barecel. rmed.

Gl Glits en Bo Bon tt FCA FEW fe

S Tinton enior S Pitter tatutory A Aoitier uditor for and on Bo ee! oo Seal behalf of: Coager Cooper P Farry arry Gro Ceomp up Li (Lari mited Statutory Auditor

C eee ubo Birmingham Offices Office 401 40] , Ps 4 Floor Ihom

T Two wo C Chmabarhon hamberlain Sq Squares uare Birmingham Tt B33AX JAM

D Tok, ate: 19 March 2025

[Ss 15

UNIVERSAL MUSIC UK SOUND FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)

YEAR ENDED 31 JULY 2024

Unrestricted
Fund		 Restricted
Fund		 Total
Funds		 Unrestricted
Fund		 Restricted
Fund		 TotalFunds
2024 2024 2024 2023 2023 2023
NOTE £ £ £ £ £ £
INCOME
Donations 2 234,13 116 234,249 195,460 30,000 225,460
Investments 3 194,191 194,191 197,938 197,938
Sl ———————— Eee ———— e————S$ Ss——————————
TOTAL INCOME 428,324 116 428,440 393,398 30,000 423,398
EXPENDITURE
Investment management costs (51,831) (51,831) (54,344) (54,344)
Charitable activities 4 (767,493) (29,565) (797,058) (693,820) (5,018) (698,838)
ee —— =e EO———— a
TOTAL EXPENDITURE (81 9,324) (29,565) (848,889) (748,164) (5,018) (753,182)
NET (EXPENDITURE)/ INCOME
BEFORE INVESTMENT GAINS (391,000) (29,449) (420,449) (354,766) 24,982 (329,784)
— —— $s ——=——$ a
Realised (losses)/gains on disposal of (69,190) (69,190) (56,829) (56,829)
investments
Unrealised (losses)/gains on investments 613,584 613,584 (85,885) (85,885)
Net (losses)/gains on investments 10 544,394 544,394 (142,714) (142,714)
NET (EXPENDITURE)/ INCOME FOR
THE YEAR/ NETMOVEMENTIN
FUNDS 153,394 (29,449) 123,945 (497,480) 24,982 (472,498)
——el
—————		 ———————l
$<		 —
————		 eel
—==		 ——————————i
—$—=		 i
—-
RECONCILIATION OF FUNDS
Total funds brought forward 6,907,975 45,086 6,953,061 7,405,455 20,104 7,425,559
Net movementin funds 153,394 (29,449) 123,945 (497,480) 24,982 (472,498)
TOTAL FUNDS CARRIED FORWARD 7,061,369 15,637 7,077,006 6,907,975 45,086 6,953,061

All of the above amounts relate to continuing activities. There were no other recognised gains or lo es other than those listed above and the net income/(expenditure) for the year. The Charity has taken the exemption from preparing group accounts under section 405 of the Companies Act 2006.

16

UNIVERSAL MUSIC UK SOUND FOUNDATION

BALANCE SHEET

31 JULY 2024

31 JULY 2024
Unrestricted
Fund		 Restricted
Fund		 Total
Funds		 Unrestricted
Fund		 Restricted
Fund		 Total Funds
2024 2024 2024 2023 2023 2023
NOTE £ £ £ £ £ £
FIXED ASSETS
Investments in subsidiaries 9 " l
Other investments 10 7,082,083 7,082,083 6,933,125 6,933,125
7,082,084 7,082,084 6,933,126 6,933,126
CURRENT ASSETS
Debtors 11 222 222 222 222
Cash at bank 4,134 23,787 27,921 8,355 45,086 53,441
4,356 23,787 28,143 8,577 45,086 53,663
CREDITORS: amounts fallingdue within
one year 12 (25,071) (8,150) (33,2 1) (33,728) (33,728)
NET CURRENT ASSETS/(LIABILITIES) (20,715) 15,637 (5,078) (25,151) 45,086 19,935
NET AS ETS 7,061,369 15,637 7,077,006 6,907,975 45,086 6,953,061
FUNDS
Unrestricted 13 7,061,369 7,061,369 6,907,975 6,907,975
Restricted 13 15,637 15,637 45,086 45,086
TOTAL FUNDS 7,061,369 15,637 7,077,006 6,907,975 45,086 6,953,061

The accounts have b n prepared in accordance with the special provisions applicable to companies subject to the small companies regime.

ncial statements were approved by the trustees and authorised for issue on 18 March 2025 and are signed on fby:

Company Registration Number: 05062390

17

UNIVERSAL MUSIC UK SOUND FOUNDATION NOTES TO THE FINANCIAL STATEMENTS NOTES FO WE FINAL Su DETD YEAR ENDED 31 JULY 2024 VICAR ER Se SUS Sen

1. ACCOUNTING POLICIES

Deke Basis of preparation aT yergpeectice

The The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of fieaneiel pioceees hues bee yrecered ij weeedewe wil Acoceing el Beorteg ty Clie: Siva of Toeemnendnd Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard Fractoo app Goabbs wo chertites propeting Set encoite n deceniinecs with Final Meroe Poems? applicable in the UK and Republic oflreland (FRS 102), effective 1 January 2019 -- to be abbreviated as Charities SORP nysptionbio in fon U1S. wl Respilbe ot tealenaS (HVT) ePfwthve: | harem 2029.-th Tnaiervtstnemn (Here SEP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Charity meets the definition of a public benefit entity under FRS102, and is incorporated in England and Wales as a Vio Chatiy sect te deities ofa poblis beac emitty sede PRS, el bs locos SS Higher eel Yakn aca company limited by guarantee, not having a share capital (note 16). The Charity is a registered charity. The registered office is given on page 1 . The financial statements have been prepared under the historical cost convention Tisee Je 1. stiteeoentshive eax mager Gee Wiel , except for ite investments which are included at market value.

Keon Exemption from preparing consolidated accounts ptiw Bun presets cotutolicheted execs

Wider Under section 405 of the Companies Act 2006 the Charity has opted not to prepare consolidated accounts setion 409 of the Comqeariss Ast 32MM tha Chatty bes opie ve} te tess Smecikinod ancounts. . Lor For both bow SS 2022/23 and 2023 well 221004 /24 all subsidiary undertakings may be excluded from consolidation in line with the thresholds in section 2) anbiektiney madlettelditge res M4 meee ata ootapaddidhsionn iii birae wills t= Mealiebts: fn snetion 405 of the Companies Act. The Charity's only subsidiary excluded from consolidation is MSFC Limited (03287591), excluded under section 405 (2) of the Companies Act 2006 as the subsidiary is inactive and not material to the group. citi sar nion 403 Gy abiin CocapaahiaRed IOOG oe din itibiatioey ir tate ead mot seta te Soo gona Sach Cash flow Statement and Statement of Change in Equity Gree Sateueed tend Sacemoant of Chsgs tu Myetty The charitable company has not prepared a cash flow statement nor a statement of change in equity as the Charity is not olepe a larger entity as defined by the SO anttyes tctiand tio IORI RP and is a small un fs a.chan co cmeguny mpany as de oa and fined in the Companie iy is Smee s Act 2006 Hoek OE. . _ =

Cate Going concern apes

Te The fi Fimemeta) nancial statements have been prepa ethyraueerts lees Leena prspanae) red on a going conce on ming occa rn b Dale, asis. The Tin trus ugar tees have a reasonable expectation Hore a lil expectant that the ifs Charity has adequate resources to continue in operational existence for the foreseeable future. The trustees of the Charity have considered the Charity's position and have determined that the Charity has sufficient funds to continue to operate as a going concern for a period of twelve months from the date of signing. The Charity's ee grant funding activities are gene Er calitaterten rall ACAI y funded thro L ug ae h the investment port eee RL fo EE lio held. The tr ee ustees are confident that it is a grant Finding ectiettien are pearsmally thoomied thieuyh tha laveetnent portilts Bett Tha tugteen aro qemfident thal i ie apreprtiaite appropriate to consider the Ch to ovnaider Se Charity arity a » g going oing w=. concern.

Terie Expenditure

Charitable activities expenditure comprises grants made in accordance with the defined charitable purposes of the Charity. Governance cos ls ts include expendi Jade wpe ture incurred on com sts cli pliance with constitutional and sta So dementia hil tu stay tory re vi quirements. Support costs, including management and administration costs, have been allocated against charitable activities. No support costs have been allocated to restricted costs as they are immaterial.

2) A commitment is made when grants are approved by the conscriptsvend Seppe perdi: serenpsprowiedThy The tru teertoae stees and communicated to the applic oe cecimnatstbevocl: ants. Grants are recorded He as expendi expenidiay ture on the basis of th on tie Drenip oF yeu ese amounts. emer. tes tier epi fiensilit, Cheeni ape condi,

Debts Debtors

Deckibony Debtors coe are recognised where the Charit reocangtaiied sredegen this (Ciiieeckge y is owed Sp comin) fu Btiothe nds by a t Tiny wu tified hird p yueety, arty. T Thee hey are measured at the coos coed an the mcmahon, recoverable amount, which includes an wid iahsdon uy y yovicies provision fo Ku r bad and doubt hediend deta ful debts Sha. . :

Creditors

(oodies Creditors ar mp e recognised whe seoegehedwhos re the Charity has a present obligation resulting from a past event that w thee Chetty lens o poorest ob Eientien meecibtitie fhe 4 perc core Chol wal) ill pro te bably resu ty ecu lt in hs the cemaclec transfer of of fu Sinvds nds to a third pa we nd purty ond rty and the amount due to se hn aceasta towitn ttle the ob So cktgettin ligation can be m continmeee easured or estimated reliabl im eating sclielily,: y is . Creditors are recognised at their settlement amount.

18 if

UNIVERSAL MUSIC UK SOUND FOUNDATION DAYERRSAL, MUSIC Uk MOUND PDA BEFITS NOTES TO THE FINANCIAL STATEMENTS Yn SE PAL SYS Ses WEAR YEAR ENDED 31 JULY 2024 SAD AY uly Baa

  1. 3.0 ACCOUNTING POLICIES (continued) NOCGENTTOTGS PNiNCINS (once

Magura? Deferred Income Sree

Deferred income is recognised where funds have been received during the accounting period, but for which the Charity has unfulfilled obligations relating to those funds which will not be carried out until subsequent accounting periods.

Were Income

JD All income is credited to the statement of financial acti teas i omitand tp the tiebeesod of fended ectviten vities on an accruals basis. Services donated to the Charity are an a sooeely beck, Unevioen deeted te Se Chatty os included as "Donations" at cost at the time of receipt. iectnded os “Dremation:” af ont pj ibe fina nd erie

All incoming resources are accounted for on an accruals basis and are included in the Statement of Financial Activities vie when:

Tisai Taxation

Tiss The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the Chertay is oecidigred)to para fy tees eat ont in Pramas 1 Scdeotbetls £ pene Act WITO sand thernftiee [e remnedn the Seflulilon definition of a charitable company for UK corporation tax purp ofa olueititils geniemey Sor 18.coment oses. Accordingly, the Charity is exempt from taxation in reppecd respect of income or capital gains recei olf bapguatt of cuydtal jonits pourdeend ved within categories covered by Chapter 3 Part 11 Corporation Ta qithde anieeurkscoon pipe,coped Araaenliceely,ly Clete 1tlhePart Clarity|| Oerpenigorbe earepe TerGems x Act 2010 or tonatices2d 8 by Section Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively or bo to charitable purposes culties254 of purer, Ses Temation . oF Okngediiie Cedar Act 1501, to toe nerd thet tend) inoceye oe guint we andes quite Urea Investment assets sexes Investments, excluding investment in subsidiary Imre, exthaiiig iewertvent hy nobelitiggy, , are classified as financial a wen Ohartle! ee Sion ied eet ets at on "fair value through profit and loss cio wilinn Cinowpht posdis nent leant, ". These are measured at market value as at the balance sheet date Vineeam tomer? 2¢ copies veiun a9 at thie hekeape shied dete, . Realised and unrealised gains on investments are Weabindd cei tameciiodpei co Geman fepappiorss recognised in the statement of financial activities irr tiv: steam of Geena activin. . "Nie The Charity measures investments in subsidiary undertakings at cost Cheray ees rte & wintery eelereigs at melog less impairment. In the current and prior year all investments held by the Charity are held in unrestricted funds. Meso! Financial instruments Anemennte Financial a ets and financial liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs), te Sersbrerrceaet, ACT] Bess] sams iit) Vesb then. ure ia y neo ag coun them prcion (inn dtinns tromaactiec o ),n except for those financial a ets cla ified as at fair value through profit or loss, which are initially measured at fair value Codhilll (which is no le ngeuailly rmally the t he Gaetan ransaction price e plies eesieling xcluding transac teeoethan tion costs gcc] ), unless the arrangement co eclges fet ereeece! nstitutes a financing Vearectiow, transaction. If an arrangement constitutes a finance transaction, the financial asset or financial liability is measured at the ooertitets o Beni eer present value of vabpHfofthe en) th ayOgencot e future pa fee epee y aceite: ments discou leant’2 nted at a market ra unafet e nssactheny,stcs te Seoe of interest for a similar debt ins e isnttreat eea o t rarol Pemagalnldeh fW tru e ls ment. et ier Ss meezan ai flap The accounting policy for investments is stated above. Deeds Trade and other debto eed oder delters rs are recognised at the se sev enmegeilenll of the petGlinceat ttlement amo gana? unt due a dee nike fter any trade discount o guy trick: doce adiowl, ffered. P Freemont repayments are sediiell valued at the il thy am pinctont ount prepaid net powpeslil seit o Of f an ry y tra Oy de discounts due awards . Cash at bank and cash in hand includes cash and short te seo rm “Miggiiiy highly li Mqukd quid investme Breteterwety nts with a sho wide 6 chert rt ma meetesby turity of tng of three mont GisecedeCob hs or less eet bineele fro anid m the date of caeill lie famnel: ac fiawsfindier quisition or opening of the could sine ghinet Geer, éepes% deposit or similar account. Creditors and provisions are recognised where the Cha ce loo een Ges de rity has a present obligation resulting of angeieizos oo aeneg of Cy een from a past event that will p or abies sunset. ro (Couditem bably resu aed lt in eerie the transfe ee r offu eogginsd nds to a third pa wiers the rty and the Chandy am be ou 1c nt due to se pproent obligation ttle the obligation somites caw can be mea be© niseiored pees eect sured or e Gantob eopftiyehdh s vr tim lll ated re prrcathhymallet, liably. Credito gemlloatiheee Seeths rs terpall and pro persistant oF v three isions are no esarsws Dal weyoeewialliy rmally recog ra e o ogetinnds Bs nised at their se aegemeaf (ok damoptical to ttlement amount a netibe theseeeoerd abil mtn:wer fter allowing for any trade discounts due. Critical judgements and sources of estimation uncertainty Ceitien! [rdgess pu aS eens wi eatitradiesa pert

Them There a var re no key sources of estima pe kes soups of erties tion unce anocrh rtainty as at at ad th foe e re e po petentty rting date. cat

i$ 19

UNIVERSAL MUSIC UK SOUND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

2. DONATIONS

2.
DONATIONS
Unrestricted Restricted Total Funds Total Funds
Funds Funds 2024 2023
£ £ £ £
Donations received 10,650 116 10,766 40,000
Donated services and facilities 223,483 223,483 185,460
—e, —=—=—See ——— —
234,133 116 234,249 225,460

During the 12-month period ended 31 July 2024 Universal Music Group International Limited seconded staff and provided accommodation and services free of charge to the Charity.

Under the terms of the Charities' Statement of Recommended Practice, the Charity records the commercial benefit received from Universal Music Group International Limited as donated services and facilities, with an equivalent being included as expenditure under appropriate headings. The income of £223,483 (2023 - £185,460) recognised is based on the actual cost incurred by Universal Music Group International Limited, relating to seconded staff and audit fees.

All donations the Charity receives in respect of the Decca bursary have been recognised as a restricted fund.

3. INCOME FROM INVESTMENTS

Unrestricted Restricted Total Funds Total Funds
Funds Funds 2024 2023
£ £ £ £
Income from investments 194,191 194,191 197,938

4. EXPENDITURE ON CHARITABLE ACTIVITIES

Grant expenditure is in furtherance of the Charity's objectives.

Unrestricted Restricted Total Funds Total Funds
Funds Funds 2024 2023
£ £ £ £
Donations to schools 271,640 5,900 277,540 233,391
Donations to individuals 89,649 89,649 93,220
Bursaries 65,000 65,000 70,000
Schools Project ll7,429 117,429 112,847
Other = 23,400 23,400 18
Grant expenditure 543,718 29,300 573,018 509,476
Support costs (note 6) 207,733 207,733 170,460
Governance costs (note 5) 16,042 265 16,307 18,902
a —— —— ———
767,493 29,565 797,058 698,838

The schools Project 2023-24 is described further in the trustees' report under the Achievements and Performance section on page 5.

20

UNIVERSAL MUSIC UK SOUND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

5. GOVERNANCE COSTS

Unrestricted Restricted Total Funds Total Funds
Funds Funds 2024 2023
£ £ £ £
Legal fe s 282 282 1,974
Audit fe s 15,750 15,750 15,000
Other costs 10 265 275 1,928
16,042 265 16,307 18,902

6. SUPPORT COSTS

Management and administration

Total Funds Total Funds
2024 2023
£ £
207,733 170,460

Management and administrative costs represent the donated services for all staff seconded by Universal Music Group International Limited to the Charity. These costs are a ocated to charitable activities.

7. AUDITOR'S REMUNERATION

Audit f s of £15,750 (2023 - £15,000) are borne by Universal Music Group International Limited, which has not re allocated any f s to the Charity.

8. STAFF COSTS AND EMOLUMENTS

During the accounting period the Charity did not employ any staff. Any Charity staff referred to elsewhere in this report were employed by Universal Music Holdings Ltd. Their services were donated (see notes 6 and 14) to the Charity, with the aggregate payroll costs borne by the Charity being nil (2023 - nil). Universal Music Group International set the remuneration of these staff; the Charity did not have any control over this.

An apportionment of the remuneration received by these staff is recognised as a donated service from Universal Music Group International on the Statement of Financial Activities (included within Donated Services and Facilities in note 2). This apportionment is calculated based on the time spent on the work of the Charity. An equal and opposite support cost (note 6) is recognised such that the net impact on the Statement of Financial Activities is nil.

Of these staff, the number whose remuneration for the year fell within the following bands was:

2024 2023
No. No.
£80,000 ,000to£90,000 1
£90,000 £90,000to£100,000 1

The trustees consider that they, together with the Chief Executive who during the year was the highest paid donated employee, are the key management personnel of the Charity. The trustees (including the Chair) received no emoluments (2023 - £ni)). No trustees received reimbursements for travel expenses incurred during the year (2023 - £nil). No trustees incurred out of pocket expenses (2023 - £nil) for which they were reimbursed. No member of the board of trustees had a material interest in any contract or transaction with the Charity or its subsidiary in the current or prior year.

21

UNIVERSAL MUSIC UK SOUND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

9. INVESTMENTS IN SUBSIDIARIES

The Charity has one (2023: one) wholly owned subsidiary, MSFC Limited, which is held at a value of £1 (2023: £1). The company was inactive during 2023/24 and during 2022/23. This subsidiary has not been consolidated and presented as part of group accounts. Please refer to note 1 for further details.

10. OTHER INVESTMENTS

Unrestricted fund: Movement in market value of listed investments

Unrestricted fund:
Movement in market value of listed investmentsin market value of listed investmentsmarket value of listed investments
2024 2023
£ £
Market value at I August 6,795,157 6,910,270
Acquisitions at cost 1,757,970 2,262,506
Disposals at market value (2,032,588) (2,234,905)
Net (losses)/gains on revaluations in the year 544,394 (142,714)
Market value at 31 July 7,064,933 6,795,157
ee
SE
Historical cost at 31 July 5,734,075 5,951,318
Analysis of investments as at 31 July between funds
Total Funds Total Funds
2024 2023
£ £
Listed investments
UKQuoted entities 1,632,748 1,856,893
Non-UK Quoted entities 3,707,404 3,384,834
UKfixed interest 106,893 67,790
Non-UK fixed interest 124,755 90,256
UK --other investments 757,052 707,614
Non-UK other investments 736,081 687,770
ee
7,064,933 6,795,157
Other investments
UKCashheld as part of Portfolio 17,150 137,968
7,082,083 6,933,125

11. DEBTORS: Amounts falling due within one year

Un restricted Restricted Total Funds Total Funds
Funds Funds 2024 2023
£ £ £ £
Amounts owed by group undertakings 222 222 222
222 222 222

22

UNIVERSAL MUSIC UK SOUND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

12. CREDITORS: Amounts falling due within one year

Un restricted Restricted Total Funds Total Funds
Funds Funds 2024 2023
£ £ £ £
Grant Commitments
Brought forward 33,728 33,728 19,785
Grants approved 608,187 608,187 597,449
Grants paid (552,377) (552,377) (490,268)
Grants unclaimed/cancelled (64,467) (64,467) (93,238)
Carried forward 25,071 25,071 33,728
Accruals 8,150 8,150
25,071 8,150 33,221 33,728

13. FUNDS

Balance as at Total Income Total Gains and Balance as at
1 August 2022 Expenditure losses 31 July 2023
£ £ £ £ £
Unrestricted Funds 7,405,455 393,398 (748,164) (142,714) 6,907,975
Restricted Funds 20,104 30,000 (5,018) 45,086
Total Funds 7,425,559 423,398 (753,182) (142,714) 6,953,061
Balance as at Total Income Total Gains and Balance as at
1 August 2023 Expenditure losses 31 July 2024
£ £ £ £ £
Unrestricted Funds 6,907,975 428,324 (819,324) 544,394 7,061,369
Restricted Funds 45,086 116 (29,565) 15,637
Total Funds 6,953,061 428,4 0 (848,889) 544,394 7,077,006

The restricted fund was set up in 2018-19 to deliver the Decca Bursary, as described in the trustees 'report.

14. RELATED PARTY TRANSACTIONS

Janie Orr, a Director ofMSFC Limited, is an employee of Universal Music Holdings Limited.

The trustees do not receive remuneration for their services. Further details are given in note 8 of the accounts.

There is a rolling three-year Service Agreement between the Charity and UMGI, whereby UMGJ agr to provided, on a free of charge basis, a Chief Executive and support staff and the necessary offices for the Charity, as well as website hosting and data processing, insurance and various accounting, administrative and other support services. The remuneration of key personnel has therefore been set by UMGI alone, not by the Charity. The insurances provided through UMGI include Directors and Officers insurance for the trust s. UMGI also donates £10,000 to the Foundation annuall

23

UNIVERSAL MUSIC UK SOUND FOUNDATION LINIVERGAL MUSE Ui SOUND FOLENS NOTES TO THE FINANCIAL STATEMENTS CEES HD AS PAA STEED YEAR ENDED 31 JULY 2024 AS Pe ET 31 I SBA

the Charity entered into an amended Service AgrAs described in the trustees' report under the 2024, including the three members of staff becoming direct employees of the Charity as of that date. The Service AeneDNA}, OTAdeccitfettTuMeNLeibraeyep tevvtaewcetldn thyCi feetan Mteryone”lige rer eaten pitereg/ routcel rave*anwticcsee cH thoEW Ayguszrsivienl Mecurttitng “ectneiggses "Changes to the Service Agreement with UMGI" ment with UMGI the changes under which took effect from l August toe) AMwe 9 cmmptinyiogsootsnSoe (HesAppeommntlegisev[lies] typelew[luabity] with welatedeWM freak! pontlon, section, on 31 July 2024 efftet oe fem) RP dahe Alnpyest2M Agreement will terminate on 31 July 2027included in next year's report Pippitnahudieadbein dietIn eaatvee (TT dae your's importend) TTT Cy| . Discussions are ongoing Dene Pern ri eg regarding ne ee ces the revised arrangements and these will be egret pternioraaltA)ininenwus cutie: Male. iered 1iBievdine the creation, operation and administration of the Decca Bursary. Adam Barker, Chair of Universal Music UK Sound During 2018/19 the Foundation entered into a formal agreement with Decca Records, part ofUniversal Music Group, for Hiacitogytid erent, 200019OpeenthuntChe Oi enwinllehittion allntrierlaton eftfnl dito ofater Mie Deascpio oe Aub9 PoreNerker,tents,Clnnirprtof ofUnivered Vincent Mpede Minti: Gronp,fr Foundation is also a Director of Decca Music Group Ltd ai[tN] ROA Tid iliocr ikOMe 0) [hence Patton! ives Tatil . UNS Sata

15. Hi POST BALANCE SHEET EVENTS Peter eA CAAIS Senet hyeerie

The market value of the Foundation's investments fell to the signing date in March Mbee rnnet oat vended A CM a Weeneet pt heath ented PRATT a Pde ghdeat 2025; EAT their value stood at £7,011,338 eel Las anteCD ET

on on: 28 28 February 2025, Tatonny 209s, representing a decrease of l rec tig a domes ot % on the year-end valuation of £7,082,083 (see note 10). There have Yrenrany been no other post balance sheet events which would materially impact the financial statements as presented here adlerpoet alee al feat opis eit)weente antsTaatar = -eeepopottliéwateniionTinnandalof FAR qtahorinme08S Caean qyeennind niin 1}, Teefare . fave

  1. UA LIABILITY OF MEMBERS ae ee es

Universal Music UK Sound Foundation is a company limited by guarant thiboorndl and does not have share capital. It is registered Str ie 18 anil Houndatinnte wcrnpnmy Seti. Srernatoe aT in England and Wales (charity No. 04027, company registration number: 05062390) and i unl dope not hawentinn ts registered of capi fi A ce is ie wnisined 4 Pancras

S Pppuarvin quare London N acm ifsresarn! Walle, TMS lC 4 1)\C. (oliartiy AG. In SA Me the event of Universal Music lave ereanahTORRY, compton UK Sound Foundation being wound up the cater URI2290) pnddin reyynioret ofan liab tn ility of each Meno

of the eet Members se mem@ is limited to £ tr clin) a 1. ant lant vrmpretd Atueric to °cacedh Mamumided espe Veta, worssvdl ingy tees Mentally cl enacts

Fa 24