Registered numbor: 05464855 Charity number: 1110639 KENT MUSIC (A company limited by guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
KENT MUSIC IA company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES IAT THE DATE OF APPROVAL OF THE FINANCIAL STATEMENTS) AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2022 Trusttts lat tho date of approval of the flnancial statements) Geoffrey Miles. Chair Timothy Leates Sarah Hohler (appointed by Kent County coun1) FrarsCa Christmas Robin Hammerton Elizabeth Topwala Lesley-Ann Smfth Ke Siw8k Alicia Moytes Jessica Cooling Rebecca Evemden Sarah Hamilton (appointed by Kent County CounciD Abdur-Rehman Isma61-Mia (appointed 25 March 222) Company rngisttred number 05464855 Charlty roglstsrod numbor 1110639 Reglstered offlce Units 25 & 26, CreatNe Enterprise Quarter Javelin Way Ashford Kent TN24 BFN Chlef gxocutlve offlcof Peter Bolton Independent audltor Crowe U.L LLP Riverside House 40- 46 High Street Moid$tone Kent ME14 1JH Patron Jools Holland OBE Page 1
KENT MUSIC IA wmpany Ilmltod by guarnnteg) TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2022 The Trustees present their annual r¢wt together with the audtted finanoial statements of the Kent Music for the 1 September 2021 to 31 August 2022. The annual report serves the PUryK)$8s of both a Trusteos, report and diredors, report under company law. The Trustees confim) thal the annual report 8nd financial statements of the charitable company compty with the current statLrtory requirements. the requirement8 of the charitable companVs governing document and the promsions of the Statement of Recommended Practice (SORP) applicable to charitie$ preparing Ihoir accounts in accordance with the Financral Reporting Standard applicablg in the UK and Republic of Ireland {FRS102) (effective 1 January 20191. Since the Company qualifies a$ Small under section 382 of the Companies Act 21Y]6. tho strategic report required of medium and large companies under the C¢xnpanies Act 2006 (strategic Report and Directors, Report) Regulations 2013 has been omitted. Stfucture. governance and managomènt Constltulion Kent Music is registered as a charitable company Umited by guarantee and was set up by a Memorandum of A$slatIon. The Charity is registered ag a charitabl8 ct)mpany limÉtod by guarantee, incorporalgd on 26 May 2005 aTrJ registered as a chanty on 29 July 2005. Tha charity look over the assets and liabilities of Kent Mustc Schcd on 1 September 2005. Kent Music School was registered as a charity on 20 November 1969. The Charity was created under a memorandum of association whi¢h established the objects and powers of the charity and is govemed under its articles of association. Methods of appointment oreleclion of Trusts•s The management of the Charty is the responsibllty of the trustees who are elected and COpOPted under the terms of the artides of association. Kent Music is keen to ensure that its board of trustees includes a broad base of skills and repr8$entations. The method adopted for the recruitment and appointment of new Iruslees is that vacancies are advertised and applicatKins are 1ftvd. Shortlisted candidates are Inlervitrwed by the Chair and another tnjstee. Trustèès The Trustees that seryed durirvJ the year are as follows.. Geoffrey Mites, Chair Timothy Leales Sarah Hohler (appointad by Kent County Councit) Francesca Chrisknas Robin Hamm8rton Elizabeth Topiwala Lesloy-Ann Smith Kyle Swek AlicAa Moyles Jessica Cooling Rebecca Evemden Sarah Hamilton (appointed by Kgnl County Council> Abdur-Rehman Ismael-mia (appointed 25th March 2022) Page 2
KEKf MUSIC (A company Ilmlted by guarantse) TRUSTEES, REPORT {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2022 Structvrei govornance and managemgnt {Gontlnugd} Chlef Executlve Pgler Bolton Senlor Leadership Team OINia Edwards (senior leader, music hub) Trevor James (senior leader. tuition & ensembles) Ruth Roberts {senior leader, operations) Oryanisatlonal ¥tru¢ture and decisionwmaklng pollcles Tho board of trustees of up to 14 members meets 4 limes a year to 8dmlnlster the Charity. A chief executNe is appointed by the Irustees to manage the day to day operations of the charity. There is an executive commtttee of trustees, which also acts as the audit committee which meets to support the chief 8utO arKI leadetship team on matters conceming the day4trday running of the Organisatn. Induction trainlng for new trustee8 is provtded and they ore also offered the opportunty to attend other rdevant training cour50S. Pollcles and obJectlve9 The purposes of the charity {th¢ objects) shall be the promollon ol the perfomiing arts In all its form$ and in particular music and for this Po$e lo provide education. luitlon and aelivilies for the benefrt of the public generaNy. prineipalty within the County of Kent and the Unitary AUthlty of Medway. Mission Slate Kent Music is a strategic music organis8tion for Kent. providlng and facilitating mu$K edLK9t. in4)iration and SLrpport for leamers, schoots, leacheis. mus[an8 and audiences. Values Anticipating, valuing and Supporting diversity and difference. Maintaining high expectations for all leamers and staff Understanding the needs of children and young people Reducing balerS to engagemenl Keeping creatmty at the heart of our thinking Kent Music is funded by Kent County Council lo provide QLrt of music cenlres. county level ensembles and hoirs and an annual summer school. The organisation 15 also funded by Arts Council England as the lead partner of the music education hub for Kent. In thls role Kent Music works with partner5 to provKle mus¢c edLtcalion seNices to childron aged 5 to 18. The vision ar values are INed throLFgh a business pfan. In the business plan 2021-24 there are three core objedives.. To provide access to instrument81 and vocal leaching across Kent. Page 3
KENT AIUSIC (A ¢ompany Ilmlted by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Strncturep govemance and management {contlnued) To pwde access to a broad range of out4-school music activities across KenL To create the eonditions where thrives in 8chool8 in Kent. Pay pollcy for key management pernonnol A new pay pc4icy vms agreed by Irustggs al the March Board meeting. The polKy sets out how pay for all staff 11 be rewewed including key management personllel. When sonior staff appointments are made, a benchmarking exerasg is carried out to estsblish pay18v81s. Flnan¢lal rfsk managemenl The Trustees have assessed the major risks to whrch the CcHnpany 15 exposgj. in particular IIK)se felata k> the operations and finances of the Company, and are Satisfied that Systems and pr$duleS are in place lo mituale exposure to the major risks. Plans for futuro perfods A bLFSiness plan has been designed and started fft September 2021. The plan draws on the experien¢e of the 2020r21 academic year to plot a path to recovery and inlo a period of growth. The focus of the plan is on foLtr core aims.. providing instrumental & vctal tuition lo as many stLMlenls as possible across the county,. providing stLtdenls asS lo a broad range of outaof4chool music aclNilies,' creating the conditions where mustc thrives in Kent schools., and supporting and developing the workforce. These core aims wll be supported by plans for inclusion, youth voice. partnership working, income generatlon. communication and digtsl tschnology. Page 4
KENT PJIUSIC IA company Ilmltod by guafantse) TRUSTEES. REPORT {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2022 Achlovemgnts and Perfomianc• Policies and oblectives Charging and remissions policy The Tfuslees of Kent Music contlnualty have regard to the Char6ty Commlsslon's guldance on public benefit Kent Music has a charging and remissions policy designed lo remove as many barriers to MUS edUCatn has we can. The policy covers the ftAfowing'. Kenl Music's tuition fees aim to recover the houdy rate paid to the teacher. the st of provKling DBS checks. the cost of hiring teaching venu¢$ and a small contribution to the overheads of Kent Must¢. We Nn a whole clas$ instwmenlal leaching programme that prOVtd every child in Kent the opportunity to have free in5trumentsl teaching for one hour per week. We receNe subsidy from Kent CoL¢nty Council Ihal onables us to provide a netsvork of out of $thool music centres and county ensembles and choirs at a subsKlised rate. Other proJecls and prcgrammes run by Kent MUS are provKled for a small charge or free. Thrs includes professional development courses for teachers, large scale lebratIon evenl$ for h0)Is, the Kent Music Roadshow end occasronal short4emi projects. A bursary scheme funded by part of the grant from Arts Council England arKI other ad hoc grants and legacies supports 75% of the cost of tuition fe8$ lor chiklren & n9 pfjoplg wkj fall into various cal¢gories for state benefits Review of activitios During the year the number of student8 leaming to ptay instruments gradually increased as we tried to retum to pre-pandemic levels, starting the year at lust over 400 $ltJdents and ending the year al 850 student8. This was short of the 1.100 students we were teaching bgfore the pandemrG. but an encouraging resuk gwen that somo schtrJls were still not open to extemal b(king$ at the start of the year. Our Whole Class Ensemble Teaching programme. MusicPlus. also grew through the year starting with 104 projects at the start oflhe academie year and dIrY the yearwth 138 PTOj*. The number of sehools buying us for music activtttes increased thmugh the yoar from 17 at thè stsrt of the year to 22 by the end ol the year. Only the Sevenoaks Muslc Centre opened at the start of the year but by Christmas all the centres were open ¢)nce again though none gave public performances of the students. work during tho year. Kent County Youth Orchestra, Kent Youth Wind Orchestra aNI Kent Youth Chotr ian a full sel of coulses during the year and we were delighted that they were all able to finish theii wurses with live perfoffnances. Page 5
KENT MUSIC {A company limlted by guarnntgo) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Achievements and Perfornianco {continuad) Revlew of actlvltles Icontlnuedl Kent Musi¢ Summer School took place in new facilities at Bgnendgn Schcol induding a now purptss&buitt concert hall that we were the first organisation apart from the school to use. This gave students the opportunity to enjoy the experience of plawng in a professional quality concert hall. many for the first time. Numbers inctsa5ed again this year 309 stLtd8nl$ attending summeT school Coufses. In addition, we continued to provide an experience day fof Students from prinkqry schools in Kent. gNing children the opportunty to play music with children from other schwls as well as witness rehearsals by students attending summer school cour. This attracted a further 90 students lo the summer sthool. Kent Music's roadsh(Y•V, featuring three of our most experienced teachers, perfom)ed in schools through¢)ul the county every Monday during temi Me. reaching approximate 10.000 children. Mu$lc Educatton Hub The music educalbn hub continued to thrive during the year. In 2021r22, fo11thn9 threè pllot profectS, impcrtant changes to the way in which the hub funds music in sch{lS were made with th8 intlDduction of a new programme of Funded Opportunities. Through this programme schools Id seek financial supwt for MusicPlus, ensembles or bespoke support, for example to help devebp the music curriculum for the sthoc4. As a re$utt of this approach, over 30 schools have opted for besp(*e 8UPPOrt whtch be provided durng the 2022r23 academ year. Also. during the year partnerships with the Bo11 8rass Band and the Englrsh Folk Dance & Song Soclety enabled Children & young people al sch¢Jols in Ashford and Gravesend to take part in creative projects designed to broaden their ensemble praying experience. Oryanlsatlonal Change In Marth 2022 the charity entered into a peri&d of consultatlon with staff on a proposal that W¢$ seek a considerable reduction in the costs of running the tharity. including a re5twcturing of the staff team. A now structure was agreed by the end of the yearto be implernented from September 2022. Also during the year preparations lo move Kent MUS into a new purpos&buiit building in Ashford reached a conclusion. The new building is part of a creallve enterprise quarter in Ashford wlth Kent Musk and Jasmin Vardimon Company being the anchor organisations. The move brings all of Kent Music's staff, musical instruments, equtpmenl and library under one roof for the first time and makes a considefable saving on annual venue costs. The move look place just after the financial year end. Golng concem The accounts have been prepafed on a going concem basis. The trustees have a reasonablo expedalion that the charity has adequ8le resources to continue in operation exlslence for the foreseeable future. We are in dis$s1On with Kent County Councl to confinn their level of support for the comirvJ year. Arts Council England (ACE) have confimied that lunding to music hubs will remain al current leveLq until August 2024. In advance of August 2024 the will be a bidding proces5 to run mLtsi¢ education hubs when funding for an unspgcÉfied peric41 beyond September 2024 will confimied. Cash in bank at 31 August 2022 was £1,528,112. With the grant from ACE confied and tuition income stabdising we anticipats that there is mor& than erUgh cash lo cover any eventualty. Page 6
KENT MUSIC IA company Ilmlted ty guarantee) TRUSTEES. REPORT ICONTINUED FOR THE YEAR ENDED 31 AUGUST 2022 Flnanclal revlew Rgsgrvgs pollcy The charity has a target level of free reserves ol three months. worth of unrestricted expenses this is circa £165.000. We currently have general ieserves of £1,569,188. For a detailed breakdown please See page 27. Free reserves are hekl for the following eventualities.. To cover potential fluctuations in fundlng from grants while e0515 are adjusted. To allow Kent Music to explore opportunities in line with its charitable obje¢tNes. For unexpected wsls relating to the relocation of office5. In g*Jdrtion the followlng sums are held in reserve.. An endowment fund of £333,694 resumng from o gift to the charity by Mrs D Baker Restricted funds of £1.163,392. Rlsk Managerngnt The charity maintains a risk registor that sets out the major rlyks in the foll0v9 categories." governafice.. music educalton hub., extemal risks., regulation & compliance.. finance., and operations. The risk registe¥ is updated for each board meeting and the changes since the previoLts board meeting are brought to the attention of the Iruslees who discuss and agree any action thot is required. Guarantees Members of the charty guararrteg to contribute an amount not exceeding £1 to the assets of th8 charltable ompany in the evgnt of winding up. The lolal number of such guarantees al 31 August 2022 was 13 {2021-.12). The trustees have beffic?1 interest in the charitsbie wnpany. Infomiatlon on Fund Ralslng actlvltles Kent Music complies with sedor best practice. There were no complaints In relation lo fundr8islng during the year and no professional fundraisers or commercial partners Conducted fundraising as prSenlIVe5 of Kent Musi¢. The tru$lees have been made aware of the Fundraising Regulatorfs 2019 Codg of Fundraising Practice which is applied to all fundraising activilies. Page 7
KENT MUSIC (A company Ilmitsd by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Statement of TN$t8es' rosponslbllltles The Trustees (who are also the directors of the Company for the purposes of company law} are responsible Igr preparing the TNstees' report and the financial statements in accordance with applicable law and United lQngdom Accounting Standard5 (United Kingdom GenerallyAccepted Accounting Pradce). Company law requires the Trustees to prepare finaneial stalem$nl¥ for eath financial year. Undei company jaw, the Trustees musl not approve the financial statements unless they are satisfied Ihat they give a true and fair view of the stale of affairs of the Company and of its incoming resources and application of resources, includin9 ts rncorre and expenditure, for that perfod. In preparing thes8 financial statements, the Trustees are requlred lo.. select suitable accounting policies and then app them consi$tenlty'. observe thg methods and principles of the Charities SORP IFRS 102).. make judgments and accounting eslimales that are reasonable and pnKlent.' slate whether appllcable UK Accounting Standard3 IFRS 102) have been followed, subject to any material departures disdosed and explained in the financtal stalemenl5: prepare the financial statemen15 on the going COnM basis unless it is inappropri*e to presume that the Companywil continue in business. The Trustee8 are responsible for k¢eping adequale accounting records that are SLrfficient to arKI explain the Companls transactions and disdose with reasonable accuracy at any time Ihe financial position of the Compary and enable them to ensure that the financial statements compty with the Companies Act 2006. They aro also responsible for safe9uardlng the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and othgr irregularities. Dlsclosure ol Information to auditor Each of the persons vtho are Trustees at the time when thi8 Tru8tee8' report18 approved has confimied thaL' so far as that Trustee Is aware, there is no relerdnt audit infonnation of wfiich the charitys auditor is unaware. arKS that Trustee has taken all the stsps that ought to have been taken as a Trustee In order lo be aware of any relevant audit infonnalion and to establish that the charivs auditor is aware of that information. Audltor The auditor, Cr¢)we U.K. LLP. has indicated his willingness to continue in office. The designated Trustees will prop08e a motion reappointing the auditor at a meeting of the Trustees. Appfoved by order of the members of the board of Trustees and sÉgngd on their bghall ty. Mr Gei)ff Mllos, Chalr Page 8
KENT MUSIC (A company limlted by guarantee} INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KENT MUSIC Oplnlon We have audited the firbancial statements of Kent Mu$iG Ilhe'Gharilable wmpanv) for the year ended 31 August 2022 which comprise the slalgmenl of financial actlvities, the balance sheet, the statement of cash flows and the related notes, including a summary of gunificant accounting policies. The finaneial reportin9 framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, includirg Financi81 Reporting Starkdard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom GenoraliyAccepted Accounting Practice). In i)ur opinlon the financial stalemenls: give g true and fair view of the stale of the charitable companvs affairs as at 31 August 2022 and of its ineoming resour9 and application of resources. including its income and expenditure for the year then ended., have been pTop9rly prepargd in accordance wth United Kingdom Generally Accepted Acwinling Practice,. and have been prepaTed in accordance with the requiremerFts of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance wilh Internalional Standards on Auditsng (UK) (ISAS (UK}l and applicable law. Our responsibilities under those standards are further described in the Audilorfs iesponsibililies for the audit of the financial slalements section of our report. We are independent of the charitable company in accordance wtth the ethical requlrements that are relevant to our audit of the financial statements in the Unf(ed IQNJdom. including the Financial Reporting Council's Ethical Standard. and we have fuffiiied our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suffictent and appropriate to provide a basis for our opinion. ConGlu$lons rolatlng to golng concern In auditing the financial statements, we have concluded that the Trustees, use of th& going concern basis of accounting in the preparation of the financial statements is approprlate. Based on the work we have performed. we have not 1derttrf any material uncertalntles relallng to events or eondilions that. individually or colledwety, may cast signrficanl doubt on the ¢harilable compan6 abilty to ontinue as a going concern for a perK>d of at least tweive months from wh9n the financial statements are guthorised for issue. Our fesponsibilities and the responsbi ilities of the Trustees wth respect lo golng concern are dexribed in the reievant sections of th1$ pOrt. Page 9
KENT MUSIC (A company Ilmlted by guarnfttsel INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KENT MUSIC (CONTINUED) Other Inforniatlon The other infonnalion comprises the informallon included in the annual report other than the financial statements and ¢)ur auditorfs report thereon. Tho Trustees are responsible lor the other infornalion contained within the annual report. Our opinion on the financial slalements does not cover the other infonnalion and. except to the extent othemlse explicty stated in our report. we do not expres5 any forn of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so. consider whether the other inforrnalion is malerialty inconsistent wlh the financial statements or our knOedge obtained in the course of the audit, or othenwse appears lo be materially misstated. If we Klentfy such malertal inconsistencies or apparent material misstatements. wo arg required lo detetmine whether this gwes rise to a material misslalemenl in the financial statement$ themselves. If. based on the work we have perfom)ed. we conclude that there is a material misstatement thIS other infomwlion, we are required lo report thal fact. We have nothing to report in this regard. Oplnlon on 0thg1 matters pre$Crfb by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Truslees, report lor the financial year for which financial statements are prepared 1$ corÈsislent with the financial statements. the Trustees. report has been prepared in acc¢xdarKe wtth applicable legd requirements. Mattors on whlch we are requlred to report by oxceptlon In the light of LNJr knedge and understandlng of the charbtable company and its environment obtsined in the course of the audiL wo have not [dentlad material mi5$tatements in the Trustees, reporL We have nothing to report in respect of the following matters in relation to wPAch Companies Act 2006 r4uires u$ to report to you rf. In our Opinton: adequate acctyjnting records havo not been kept, or returns adequate lor our audit have not been receNed from branches not visited by ys; or the ffinarKial slalemènts are not in agreement with the aecountlng records and retums,. or certain disclosures of Trustees, remuneration specified by law are not made: or wo have not received all th8 infomiation and explanations we require for our audit.. or the Trustee5 were rtol entillad lo prepare the financlal statements in a¢¢ordan¢e wtth the srnall ¢ompan regime and take advantage of the small companie$, exemptions in preparing the Trustees, report and from the requirement to preparn a Strategic repo Page 10
KENT MUSIC (A company Ilmlted by guarant•o) INDEPENDETrtf AUDITOR'S REPORT TO THE MEMBERS OF KENT MUSIC (CONTINUED) Responslbllltles of trusteeB As explained mre ful in the trustees, responsibilities statement, the Trustee$ (who are also the directors of the charitable company for the purposes of company lawl are responsible tor the preparalion of the financial slalements and for being Satisfied that they give a true and fair v¢ew. and for such internal control as the Trustees detemine is necessary lo enable the preparallon of financkal 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 companls 8bllty to ntinue as a going concern, disclosing, as appl¢¢able. matters related lo going ¢oncem and using the going concem basis of accounting unless the Twslees either intend to liquidate the charitable eompany or lo cease opèr81ions. or have no fealistic attematwe bth to do so. Auditorfs responslbllltles for the audit of the financlal stalements Our objectives are to obtain reasonable assurdnce about whether the financial statements as a wFK)le are free from material misslalement. whether due to fraud or error, and to issue an audilorfs report that includes our Opin. Reasonable assurance is a high kvel of assun¢e, but is not a guarantee that an audit conducted in accordance ISAS IUKI will aws delecl a material misstatement when it exists. Mi5Statements can arise from fraud or erior and are consvjered maloikql if, lndiwdua1 or in the aggiegate. they could reasonabty be expected to influence the enOMiC decÈsions of users taken on the basis of these financial slalernenls. Irregularitles. including fraud, are instance8 of non-compliance with laws and regulalions. We design procedures in line with our responsibilities. OLrtiined above. to deteet material misstalemenls in resped of irregularities. including fraud. The extent to whkh our procedures are capablg of detecting ilregularities. incI11ng fraLkl Is detailed belw.. Enquiry of managemenl including considerations of kn¢)wn or $u5peded in$lances of In-¢LimpI1anCe WFth laws and regulatn5 and fraud. Reviewing minLrtes of meetings of those charged with goveman¢e. Revtewng financkil slalement disclosures and testing to ¥upporting documentation to assess compliance with applicable laws and fegulalions. Identifying and testing joumal entrie5. In particular any joumal entries posted with unusual account combination. Designing audit procedures to incorporale unpredictability around the nature, timtng or extent of ourtesting. Because of the inherent limttalions of an audit, there is a risk that we wai not delecl all irregularities. including those leading to a material misstslement in the financial ststements or non40mpliance with regulation. This risk increases the more thal compli8nce wllh a law or regulation is removed from the events and transactions refiected in the financial slatemenls. 8$ we 11 be less likely to become aware of instances of non-umpliance. The risk is also greater regarding irregularities occurring due lo fraud rather than error. as fraud invofves intenlronal concealment. forgery, collusn, omissM)n or misrepre8enlaliDn. A further descriptlon of OLtr responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. wM.fre.o .ukl8uditorsres sibilities. Thi5 description forms part of cr auditorfs report. Page 11
KENT MUSIC (A company Ilmlted by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KENT MUSIC (CONTINUED) Uso of our f•port This report 18 made solely lo the charitable companls trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken $0 that we might stats to the tharitable Ipanys trustees those matters we are required to 8tste to them in an auditovs report and for no other purpose. To the fullest extent pemiitted by law, do not accept or assume responsibility to anyone other than the charitable company and 118 members, as a body, for our audit work, for this Port, or for the opinion$ we have foryned. lan Weekeslsonlorstatutory auditor) for and on behaifof Crow• U.K. LLP statutory Auditor RNerside House 40- 46 High Street Maidstone Kent ME14 IJH Date.. 6 April 2023 Page 12
KENT MUSIC (A company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES {INCORPORATING INCOME AND EXPENDITURE AccouTrrr} FOR THE YEAR ENDED 31 AUGUST 2022 Unrestricted funds 2022 Restricted ETrdowment funds funds 2022 2022 Total funds 2022 funds 2021 Note Income and endowments from: Donations and legacies Charitable activitigs Investments 3.638 1,031.609 1,436 3,638 3,221,415 1,436 16.403 2,956,288 2,531 2,189.806 Total Income and endowments 1.036.683 1189.806 3,226A89 2,97&222 Expendlture on: Charflable actNities 860A174 2.342.237 3,202.311 2,9CQ, 710 Total expenditure 860.074 2.342.237 3.202.311 2.9, 710 Net movement In funds bèfore other reeognised gains 176.609 (152A31) 24178 74,512 Other recognised gains: Actuarial gains on defined benofit pension schemes 24 469,000 469,000 2540CQ Net movement In funds 645.609 1152A31) 493.178 332.512 Reconciltation of funds". Total funds brought foThvard Net movement In ftjnds 923,579 645,609 1,315,823 1152.431 333,694 2,573,096 493,178 2,240,584 332.512 Total funds Carried fi)nvard 1.569.188 1.163.392 333,694 3.066.274 2.573.096 The Statement of financial acltvities indudes all gains and tosses recc&nlsed in the year. The notes on pages 17 to 35 foim part ofthe$e financial ststemonts. Pa9e 13
KENT MUSIC IA company fimltod by guarnnt•91 REGISTERED NUMBER: 05464855 BALANCE SHEET AS AT 31 AUGUST 2022 2022 2021 Not# Flxgd assets Tangible assets 11 86,288 117,8oa 86,288 IIT.808 Current agsets stocks Debtors Investmants Cash at bank and in hand 12 13 14 1,003 1.259, 143 333.694 1.$39,991 1,324,388 333.694 1.528.112 3,180,192 3, 133,837 Creditors: amounts falling due Wbthin ona year 15 1186,206) (182,549) Net current assets 2,999,986 2.951.288 Total ass9ts less Cufrent liabilities 3.086.274 3,069,096 120.CW} Provisv)ns for liabilities Net assets excluding pgn$lon asset I Ilablllty Defina benefit pgnston scheme asset I liability 120.000) 3,066,274 3,049,096 25 (474LkX)J Total net assets 3,066,274 Z5T3,096 Charlty fvnds End¢wrnent funds Restricted funds Unrestricted fvnds Unrestred funds excluding pension liability Pension reserve 17 17 333.694 1,163.392 333,694 1.315.823 17 17 1,569.188 1,399,579 (4r6,000) Total unrestricted fvnds 17 1.569.188 923.579 Total funds 3,066,274 2,sr3,096 Page 14
KENT MUSIC IA company limited by guaranteo) REGISTERED NUMBER: 05464855 BALANCE SHEET ICONTINUEDI AS AT 31 AUGUST 2022 The entity was entitled lo exemption from audit under section 477 of the Companies Act 20C6. The members have not required the entity to obtaln an audrt for the year In question in accordance with section 476 ofthe Companies Acl 2006. However, an audit Is required in accordanc9 with section 144 of the Charities Act 2011. The Trustees #cknowkdge their responsfoilities for eomptying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financki18lalements have been prgpared in accordance with the provtsions 8pplicable to entities 8ubject to the small companies regimg. Tho financial statements were apptoved and authorised for issue by th8 Trustees and signed on their behalf b. Mr Geoff Miles (Cha5r) Mr Timothy Leate5 Oate. Iilllz.s The notes on pages 17 to 35 form part of these financial statements. Page 1S
KETrtr MUSIC (A company lim1t by guarantse) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022 2022 Cash flows from operntlng actlvltles Net cash used In operating actNitie8 17.8671 27,021 Cash flows from Investlng actlvltles D¥jends, interests arKI rents from inve5tmentS Purchase of tangible ffxed assets 1.469 15.4871 4.539 (24551) Not ush US In Investing a¢tlvlUes (4,018) {21,012) Cash flows from financlng activities Net Gash provlded ty flnanclng a¢tlvltles Change In cash and cash equlvalents In the yoar Cash and cash ualents al the beginning of the year 111.8851 1.539.997 6.009 1,$33.988 Cash and cash frqulvalonts at the end of thè year 1,528.112 1,539,997 The Mtes on Pag 17 to 35 fomi part ofthesg financial statements Page 16
KENT MUSIC {A Company Ilmlted by 9uarantoe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 Charlty Inforniatlon Tho principal actNty of the éntty durtng the year was the provislon of mu$K edUtIC. The charrty is a charttable company limited by guaranlge which is incorporated and registered in England and Waks105464855). The 8ddfess ofthe Registered office is.. Units 25 & 26, Creative Enterprise Quarter. Javelin Way. Ashford, TN24 8FN Accountlng pollcles 2.1 Basls of preparation of financlal statements The financSal statements have been prepared in accordance wlh the char&5 SORP (FRS 102) - Accounting and Reporting by Charities.. Slalemenl of Recommended Pradice appluble to charities preparing Ih8ir accounts In accordance with the Financial Reporting Standard applic8bfe in the UK and Republic of Ireland IFRS 1021 leffeclNe 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Irefand IFRS 102) and the Compans Act 2006. Kent Music meets the definition of a publ¢c benefrt entity under FRS 102. Assets and liabilitigs are initially reeognised at historical cost or transaction value unle$$ otherwise stsled in the relevant accounting poli. 2.2 Company ststus The company is a company limited by guarantee. The members of the company are the Trustee8 named on page 3. In the event of the company being wourKI up. the liability in respect of the guarantee 15 limited to £1 per member of the company. 2J Going nCern The accounts have been prepared on a golng concem basls. The trustees have a reasonabla expectation that the charity has adequ818 resources to continue in operation existence for tho foreseeable future. We are in discuss)n with Kent County Council to confimi their level of support for the coming year. Arts Coun¢il England {ACE} have confimed that funding to mLF$iC hubs WIN remain at eurrent levels until August 2024. In advance of August 2024 there will be a bidding process lo run music education hubs when fundlng for an un$peufied p8riod beyond September 2024 wrH be C(rIrMed. Cash in bank at 31 August 2022 was £1,528,112. Wrth the grant from ACE confimied and tuition Income stabilising we antKpate that there is mofe than enough cash lo cover any eventuality. Page 17
KENT MUSIC IA company Ilmlted by guannteèl NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 Accounting polici8s (continued) 2A Income All income is recognised once the Company ha5 entillement lo the income, it is pbabIe that the InMe will be received and the amount of income receivable can be measured reliably. Grants are included in the statement of fin8ncFal actNitses on a re1vable basi5. The balance of Incorne received for spectfic purposes bul not expended during the period is Shown in the relevant funds on the balance Sheet. Where income is Ie1Ved in advance of entitlement of receip( t recognition is deferred and inctuded in creditorn as deferred income. Where entement occurs before income is f8ceived, the income is accrued. Income recoverable in relat*)n to investment income Is recognised at the time the investment irume is receivab. Teaching income ts recognised In the period in whlch it is rKeNable and to the exlgnt the lessons have been provided or on MpletiOn of the service. For legacies, enlitlemenl 1$ taken as the earfier of the date on which either.. the company Is aware that probate has been granted, the estate has been finalised and notifKalion has been made by the execulor{$l to the Trust that a distribution will be made, or when a distribution 1$ re1ved from the estsle. Receipt of a legacy. in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notifd of the executorfs Intent)n to make a distribution. Where legacies have been notified to the company. or the company is aware of the gfdnting of probate. and the criteria for income recOgnitn have not been met, then the gacY is treated as a contirKJenl asset and discbsed if material. 2.5 Exponditure Expendtture ts recogrFised once Iherg is a legal or constructwe obligation to transfer ecDnomic benefft to a third paty. it is probablg that a transfer of economic benefits will be required in sottlement and the amount of the obligation can be measured reliabty. Expenditure is classrfd by actmty. The Costs of each aCtIty are made up of the total of dired costs and shared costs. including support costs invofved in undertaking each octivity. Direct costs attribulable to a single actlvity are allocated directly to that adivity. Shared costs whlch contribute lo more than one activity and support costs whith are not attributable to a single actIty are appOrtned belwoen those a¢tivf¢ios on a basis consistent with the use of resources. Central Staff tOSt$ ar8 allocated on the basis of lime spent, arbl depreciat¢on charges allocated on the portion of the assefs use. Expenditure on charitable actfvitles is incurred on directy undertaking the actiwties whh further th8 Companvs cbjectives. as well as any a$soated 8LlPPOrt costs. Charitable aclivitios and Govemance costs are costs incurred on the Gompanvs operation8. including $upport costs and costs relating to tho govomance of the company apportioned lo Charitable actNilie8. All exPendUre is indusivo of irrecoverable VAT. Page 18
KENT MUSIC {A ¢ompany Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 Accountlng policie51continuedl 2.6 Tanglble Ilxed assets and doprKlation Tanglble fixed assets costing £200 or more are capitalised and recognised when future economic benefits are probable and the cost or value ofthe assèt can be measured reliably. Tangible fixed assets are initialty recognised 8t cost. After recognition, under the c05t model, L7wible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment rosses. Ml costs incurred to bring a tangible fixed asset into its Intended working condition should be included in the measurement of cost. DepFeaation is charged so as to allocate the cost of taft918 ffixed assets less their resrdual valu ¢)ver their estimated useful lives. Depwi*ion 15 pwded on the follc¥wing bases: Long Temi Leasehold Property - Over the19rn of Ihelgasg Fixtures. frttings and equipment 12-509h reducing BalarKo Inslwmenls 33% straight lino 17 Stocks Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving Stocks. Cost includes all direct costs and an appropriate proportKin of fixed and Trrnriable overhead costs. 2.8 Debtors Trade and other debiot5 are reccgnised at the setuement amount after any trad8 discount offered. PrepayTnenls are valued at the amount prepaid net of any trade dlscounls due. 19 Cash at bank and In hand Cash at bank and in hand includes Cash and short4ami highty IK4uid investments with a short maturty of three rnonth5 or less from the date of acquisition or opening of the deposit or sunitar aecount. 2.10 Llabllltles Llabllitles and provisions are recognised when there Is an obligation at the balarKe sheet dale as a resutt of a past event, it is probable that a transfer of econornic benefft WIN be required in settlement and Ihg amount of tho settlgmonl can be estimated reliabty. Liabililies are recognised at the amount that the Company anticipates it win pay lo settle the debt or the amour¥t it ha$ reIved as advanced payments for the goods or seThices tt must prowde. Provisions are measured at the best estimate of the amounts required lo Settle the obligation. Whero the effect of the lime value of money is material. the provision is based on the present value of those amounts. discounted at the pr&tax diseount rale that reflects the risks sp¢¢rfic lo the liability. The urwinding gf the discount 13 OgnISed in the statement of financial actNilies as a finanee $t. Page 19
KeKr MUSIC IA company Ilmltod by guarantsel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 Accountlng policies (Continued) 2.11 FInala1 Instruments The Company On has financ¢al assets and financial Ilabilities of a klnd that qualify as basic financlal inslrumenls. Basic financial instrumen15 are Initial recognrsed at transadion value and subsequentty measured at their settlement valug with the excepts'on of bank loans which are subsequentty measured at amortised cost using tho effective iftterest methth. 112 Op9ratlng1oases Rentals paid urKter operating leases are charged to tho statement of financial actNits on a 8lralght line basts over the tease temi. 2.13 Penslons The charity operales a defined conlrlbulion pen8lcA7 Scheme and tha penslon charge represents the amounts payable by the company to tho fvnd in respect ofthe year. The charity previousty operaled a defined ben8fil$ pension scheme and the pension charge 1$ based on a full actuarial valuation d*ed 31 March 2019 and updated to the 31stAugusl 2022. 114 Fund accountlThg General funds are unrestricted fund$ which are alrailable for us& at the discretion of the Trustees in lurtherance of the general objectives of th& Company and which have not been desKJnated for other purposes. Designated funds comprlse unrestricted fund$ that have been Sel aside by the Trust998 for particular purposes. Tho aim and use of eath deslgnated fvnd is set in the notes lo thg financlal statement5. Restricted funds are funds which are to bo used in aordance wlh spe¢ffi¢ reslridions imposed by don¢Ns or whlch have bèen raised by the Company for particular pUOses. The costs of raising and administèring Such fvnd$ are charged against the specffic fund. The aim and use of each restricted fund 15 set out in the notes to the finandal statements. Investment ineijme. gains and105ses are allocated to the appropriate fund. Page 20
KENT MUSIC IA company IlmFt•d by guarantge) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 Crltlcal accounting èstlmates and areas oljudgment Estimate$ and judgments are Continual evaluated and are based on historicai experience and other factors, inciuding expectations of future events that are believed lo be reasonable under the clrcumstances. Crittcal accounting estimates and assumptions.. The company makes eslimatss and assumption5 concerning the future. The resulting accounting estimates and assumptions will, by dgfinilion, seldom al the related actual results. The estimates and assumptions that have a swJnific&nt risk of causing a material adjustment to the carrwng amc¥Jnts of assets and liabil¢ties within the next financial year are discussed belcM. 1) The present value of th¢ Local Governmont Pension Scheme defined benefft fvnd depends on number of factors that are delemiinod on an actuarial basis using a variety of assurnplions. The assumptions used in delefftiinitvJ the net cost (income) for pensions include the discount rate. Any changes in these assumptions, lch are disdosed in note 21. wll impact the earryng amount of the pension fund. Furthermore a roll forward approach which projects resutts from th& latest full aduarial valuation performed at 31 March 2019 ha5 been used by the actuary in valuing tho pen$ions fund at 31 August 2022. Any dlfferenos befyveen the figures derived from the roll fonyard approach and a lull actuarial valuation would impaGt on the carrying amount of the pension fund. The liabilty has algo been calculated using nrIalitY rale8 used bythe UK govemmenl Incomg from donatlons andlogaclos Unrestrlcted Rg$tridod funds funds 2022 2022 Total funds 2022 Tolal fvnds 2021 Donath)ns 3,638 3,638 16.403 Tot812021 1.394 15.009 16,403 Page 21
KENT MUSIC IA MpanY Ilmlted by guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 In¢omg from charftsble actlvEtles Unrestrlcted Rostrfctsd fund$ fund$ 2022 2022 Total lunds 2022 Total lunds 2021 Tuition fees Kent County Council Inslfttments hire fees Concert fees and admission charges Other income Grants Coronawtus job retention scheme 754,992 204,000 61.118 2,566 755 754,992 204.000 61,118 2.6 755 2,189,806 8,178 427,683 38,710 129 2, 144.653 141,113 2,189,806 8,178 1.031.609 2,189,806 3.221.416 2.956,288 Tolal 2021 811,635 2, 144,653 2956,288 Investment InMe Unrestrlcted funds 2022 Total funds 2022 Total fvnds 2021 Investment inme 1,436 1.436 2.531 Page 22
KENT MUSIC IA company Ilmlted by guarantÈo) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 Analysis of expendlture by Fund typg Unrostrlcted Restrictsd funds funds 2022 2022 Total nds 2022 Total fvnds 2021 Pension finance costs Staff costs Travel wsts Instrument costs Staff trainin9 and recntttm&nl Operating lease rentsls Accommodation, computer and offi¢0 costs Other expensgs Other teaching and administrative costs Bursarie$ IProfftllLoss on disp¢)501 of frxed asset8 Tfuslees, Indemnty Insurance Professional fees School funding Projects and workshop wonditure Life insura0 Depreciation and amorti8ation 9,000 243.069 33.774 9.000 1,878.546 33.774 46.877 2S,089 104,960 244,688 84114 42.036 150.168 (2061 896 53,530 484,626 13,000 i.TT9.077 22.921 24.277 20,459 128,535 21&675 44.408 24718 79.625 (125) 821 51,787 422,328 571 6.510 62. 123 1.635,477 46,877 25.089 104,960 244,688 84.114 42.036 150,168 (206) 53,530 484,626 7.210 37,003 7,210 37.1)03 860.074 2,342,237 &202.311 2900.710 rot4 2021 688,657 Z212,053 2.900.710 Audltorf$ romungrntlon 2022 Fees payable to the Compa$ auditor ftjr tho audit oflhe CompanWs annual accounts 15,000 Fees payable to the Companls auditor in respect of.. Preporat¢on of the financial slalgmenls 3.800 3, 100 Page 23
KENT MUSIC company limitsd by 9uarantsol NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 Staff ¢o$ts 2022 2021 Wages and 8alari88 Sttlal se¢urity costs Contribution lo defined contrfbution pension scheme5 1,707,124 126.840 44.582 1.625.080 111.654 36,343 1,878,548 1,779.077 Thè averagg numbgr of Persons employed by thè Company durin9 tho year was as folknvs: 2022 2021 No. Teathers Administration 108 43 104 39 143 The numbèr of empbyees whose employee benefits {excluding empl¢)yer pension costs) exceeded £60.000 was.. 2022 No. No. In the band £90.001- £100,OLKI In the band £100,001- £110.000 The senior management learn )mPrised the Chief Executive. the Chief Opefatlng OffKer, Senk*r Manager Finance, Senior Manager Educats'on and Head of Partnerships. Th total remuneration of key management personnel in the year was £248,26612021- £247,301). Pag8 24
KENT MUSIC IA company Ilmlted by guarantoo NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 10. Trustees. remuneratlon and expenses During the year ended 31 August 2022, no Trustees received any remuneratlon or other beneffts {2021- £Nill. During the year ended 31 August 2022, expenses lotaning £NIL were reimbursed or pald diredty lo Twstee (2021- £29510 I fwstee). The costs were in respect of CPD training and pilot work. 11. Tanglblo Ilxed assets Long-terni Flxtures, leasehold flttlngs and propgrty equlpment Instwments Total Cosl or valuatlon At 1 September 2021 Additlons Disposal$ 75.919 155.908 1.187 {3.696 672.630 4.300 904.357 (3,6961 At 31 August 2022 75,919 153,399 676,830 906,148 Depr¢clatlon At 1 September 2021 Charge for the year On disposals 72,132 3.787 109,285 14.902 (3.6921 605.132 18.314 786,549 37.003 (3.6921 At 31 August 2022 75,919 120.495 623,446 819,860 Net book value At 31 AugU812022 32.904 53R84 86.288 At31 August 2021 3,787 46.623 61,398 117,808 11 Stocks 2022 Raw materrals and COrUmablS 1,003 P£ge 25
KENT MUSIC (A ¢ompany Ilmltsd by guafantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 l& Debtors 2022 2021 Due wtthln one year Trade debtors Other debtors Prepayments and accrugd income 127,291 2.863 1,194,232 15.380 2.563 1,241,200 1.324,386 1.259. 143 1& Current asset Investments 2022 2021 Unlisted iStMents 333.694 333,694 15. Cr•dltorn.' Amounts falling duo wlthln one yoar 2022 2021 Trade creditors other taxation and ¥la1 security Other creditors AttnFal$ and deferred income 4&808 36,128 23,768 121.602 34.379 46, T80 20,394 80.996 186,206 182,549 16. FinanGlal Instruments 2022 2021 Flnanclal assets Financial assets measured at fair value through income and expenditure 1,861,806 1.8T3,691 Page 26
KENT MUSIC {A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 17. Ststsment of funds Statsment of funds - curnnt year Balan¢e at 1 September 2021 Balance at GaIn 31 August ILossesl 2022 Income Expendlture Unrostrfcted funds Deslgnated funds Fixed asset fund 117.808 131,520) 86.288 General funds General Funds- all fur¥ Pension reserve 1281.T11 1476,0001 1,036,683 {828W41 17,QIXII 1,482,900 476.000 805,n1 1,036,683 1828.554) 469.000 1.482.900 Total Unrestrlcted fund$ 923,579 1,036,683 1860.074) 469.000 1.569,188 EndONont fundy Endowment FurKls- all funds 333.694 333,694 Rostrlcted funds KYWO instntment fund Bursary fund Kent YoLrth Choirs (KYC) Youth Music- Fund C Youth Music Arts Council England D A Baker Endowmenl 11.865 37.091 3,078 366 8,180 1244,464 10.779 11,865 37,091 3.078 2.544 8,180 1,089,855 10,779 11,178 (9.000) 2.178.628 {2,333,237) 1,315,823 2,189.806 (2.342,237) 1.163,392 Total of funds 2,673,096 3.226M89 {3,202,311) 489,000 3,066.274 Page 27
KENT MUSIC IA Gompany Ilmlted by guarantèo) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 17. Statement of funds {Gontlnued) Statgment of funds - prlory•ar Balance al I Septembgr 2020 Balanca 8t 31 August 2021 Gain (Lossss) Income Expenditu Unrestrlcted funds Designatsd funds Fixed asset fund 154.380 (36,572) 117.808 Gfrn•ral fvnds General Fund$- all fvnds Pension reserve 1.123.296 (T39,000) 815,560 (657,085) 1,281,771 (476.OCQ) 258.LlXI 384,296 81&560 (652.085) 258,OOQ 805, 771 Total Unrestrlctsd funds 538,676 81456Q f68Q657J 2MOOO 923,579 Ethonl Funds- al funds 333,694 333,694 Restrict funds KYWO instrument fund Bursary fund Kent YoLrth Choirs {KYC) Youth Music- Fund C Youth Music Arts Council England D A Baker Endowment 11,865 37,091 3,078 1,066 11,865 37,091 3.078 366 4180 1,244,464 10. 779 1,350 12,050) (820) 2, 144,653 IZ209. 183) 4.659 1.308,994 6,120 1,368,214 2, 159,662 (2,212.053) 1,315,823 Total of funds 2,240.584 2,974222 12,900, 710) 258,000 2,573,096 P*g8 28
KENT MUSIC (A company Ilmlled by guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 17. Statement of lunds (Continued) Purpose ef restricted funds {il The Kent Youth Wind Orchestra (KYWO) instrument fur relates to fund$ received for the benefrt of the Kent Youth Wind Orchestras. (li) The Bursary fund relates to income recewed speafKally to assist students with payments of tuition fees. (lil) The Kent Youth Choirs IKYC) donation ftsnd is monres received on the closure of Methvay Opera and relates to the unspent balance of monies received. (iv) Youth Muslc fund relates lo funds received for the benefrt of the YoLrth Music Group and Yotrth Muslc Group C. (VÉ) The Arts Coun1 England fvnd relates to fvnding for the delNery of Music Education Hubs. {vii)i D A Baker endowment fund relate$ lo the income and expenditure Lrtilised from the end*)ent fund for tuition for children in the West Kent area. As at 31 August 2022 there is a balanee of £1.089,855 because in accordance with Ihg Charity$ accounting policy, Grant income confirned as at l April for Ihe 12 month period is recognised in fvll al that date. Costs are nSIdered to be incurred evenly over the lem of the grant being 1 April 10 31 March. The oulslanding balance indude8 7 months of irKome which will be used from September to Marth in line with the grant term. Purpose of designated furvjs (i) The Fixed asset fund represents the value of furKls invested In fixed assets whlth are not, by the natLtre of fixed 8s$ets, readily available forother purposes. Pension re5eNe The pension rerve included within the unrestricted reserves repTes9nls any defined benofit liabihty. In the cuffent year Iherg 1$ no liability on the fund {2021- £476,000). Page 29
KETrrr MUSIC (A company Ilmlted by guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 18. Summary of funds Summary of funds- curront year Balancg at 1 September 2021 Balanco at Galnsl 31 Augusl {Losses) 2022 Income Expendlture Designated fvnds General funds Endowment funds Restricted funds 117,808 805.771 333.694 1,315,823 131.5201 1828.554) 86,288 IA82.900 333.694 1.163,392 1.036,683 469.000 1189.806 (2,342,237) 2.573.096 3.226.489 13,202.3111 469.000 3,066274 Summary offunds- prlor year 88lart& al I Septemb¢r 2020 Balance at 31 Augus¢ 2021 Gai (Losses) Income Expenditure Designated fvnds General fvnds Endowment furKIs Restricted fvnds 154.380 384,296 333,694 1,368.214 (36,572) (652,085) 117.808 804771 333.694 1.315,823 814560 258,000 2, 159,662 (2,212.053) 2,240,584 2,9T5.222 (2,900.710) 258.000 2.571096 19. Analysls of ngt assets be(wegn funds Anatysl$ of net assets bètween funds- tUent year Unrestricted Restricted Endowment funds fvndg funds 2022 2022 2022 Total funds 2022 Tangible fixed assets Current assets Creditors due within ono year PpJvisions for liabilities ar charges 86,288 1.689,106 {186.206> {20,0001 86.288 3.186.192 (186.206) 120.000) 1,163,392 333,694 Totsl 1.$69.188 1.163,392 333,694 3,066.274 Page 30
KENT MUSIC {A company limlted by guarantog) NOTES TO TrIE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 19. Analysls of net assets between funds Icontinuedl Analysls of net assets between funds . prfor year Unreslricted funds 2021 RestiTct8d Endowment funds funds 2021 2021 Total funds 2021 Tangible fixed assets Current assets Creditors due within one year Ptovistons for Ilabilities and charges 117,808 1.484.320 (182.549) (496,(k70) 117,808 3, 133,837 (182.549) (496.000) 1,315.823 333,694 Total 923,579 1,315.823 333.694 2.573,096 20. Reconclllatlon of net movement In funds to net cash flow from opgratlng actlvltles 2022 2021 Net income for the year (a$ per statern1 of Financlal Adwitles) 24,178 T4,512 Adjustments for: Depreciation thargos Dividends, interests and rents from investments Profil on tho sale of fixed assets l)ecrease in stocks Increase in debtors Increase in tr&Jitors 37.003 62. 123 (8.2631 (4,539) (206) (125) 1,003 1.841 {65,2431 (129,846) 3.661 23.055 Net Gash provlded byl(used In) operatlng adhvltles {7.867) 27,021 21. Anatysls of cash and cash oqulvalonts 2022 Cash in hand I28,112 1,539.997 Total cash and cash equivalonts 1,528.112 1,539,997 Page 31
KENT MUSIC IA company limlted by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 21 Analysls of Changes In not dobt S8ptemb8r At31 2021 Cash Ilows Au9llSt 2022 Cash al bank and in hand Liquid investments 1,539.997 333,694 {11,B85) 1,528,112 333,694 1.873.691 111.885) 1,861,806 23. PTovl¥lons Dilapldatlon provision At 1 September 2021 20.000 20.000 Actuarlal galns defined beneflt penslon schemes Projectod penslon expense 2022 Penslon rèserve Total funds 2022 Total lunds 2021 2022 Net penslon asset In the statement of flnan¢lal p¢)sltlon Present value of the defined benefft obli9ation Fair value of Ful assets Non recognised pension surplus 2.156,000 (2.334.000) 178.tsjo 2,156.OIKI 2.966.tk (2.334.000) (2.490,Lk) 178.000 Total 2022 476,OLX) Actuarial gains on d&finedb8nerrtpenslon 469,CQO 476.CQO Page 32
KENT MUSIC {A company Ilmlted by guarantso) NOTES TO THE FINANCIAL STATEMENTS FOR ThE YEAR ENDED 31 AUGUST 2022 25. Pon$lon commltmants The group operates a defined contribution pension scheme. The assets of the scheme ale held separatety from those of the group in an Indep&ndenY adminislerèj fund. The penSn wsl charge reprosenls contributions payable by the group to the fund and amounted to £44.582 (2021- £36,343) were payable to the fund al thè balance sheet date and are included in ueditois Thg Charity also operates a defined benefit Fension scheme whth is dosed to new members. The pension chargo is based on a fiFII actuarial valuation dated 31 March 2019 and updated to the 31st August 2022. Principal actuarial assLFmptions at tho balance she¢t date (expressed as wetghted averages).. At 31 At 31 August August 2022 2021 Discount rate Futurg salary increases Future pension increasès RPI increases CPI Increases 25 425 3.20 3.70 3.20 2.90 3.40 At 31 Al 31 A¢uust August 2022 2021 Years Yea Mortality rates (in years) - for a male 4ed 65 now - at 65 for a male aged 45 now - for 8 female aged 65 now - at 65 for a female aged 45 n¢Jw 21.0 21.9 23.3 23.8 25.3 23.5 Page 33
KENT MUSIC (A company limlted by guardntsg) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 25. Pension commltments (continu•d) The Ccffipanls share of the assets in the scheNk was.. At 31 At31 August August 2022 2021 Equ¢ties Gilts other bonds Propety Cash and other liquld 8sset& Ab801Lrte retum fur 1,528,000 14,000 309.000 275,000 40,(0 168.000 1,630,0 14,0 346,C 256.Lk 71.009 173,OCiI Totsl falr value of assets 2.334.000 2,490.000 The actual retum on schema assets was £318,930 (2021- £323.OCQ). The amounts recognised in the Statement of financial activities are as follows.. 2022 2021 Interest cost Admini8lralNe expenses 8.000 11,000 2,OCQ Total amount reco9nlged In the Statement of flnanclal actlvltles 9.000 13.OCQ Movements in the present valug of the defined benefit obllgalh)n weR as follows.. 2022 2021 Opening defined bengfit obligation Interest on assets Actuarial {gainslAosses Benefits paid Unfunded pension PentS Non recognised penston surptus 2,966,IXIO 3.043,C(Q 39.000 32, (539.000) 33.C (127,000) (137.cwJ (5,000) 1178,0001 Closlng defjned benofit obllgatlon 2,156,000 2,966,000 Page 34
KENT MUSIC {A ¢ompany limrted by guarante81 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 25. Pension commltments lcontlnuod Movements In the fair value of the Companls sharg of scheme assets were as follow5". 2022 2021 Opening fair value of scheme assets Actuarial (lossesygains Contributions by empbyer Contributions by scheme participants Benefits pald Admlni%lralive expenses 2,490,000 170,0001 16.000 39.000 1140,000) {1,000} 2,304,OC 291,000 iaooo 32.oao fl53,000) (2.OCt)) Closlng falr value of scheme assets 1334.000 2.490.C 26. Opotallng lease commitments At 31 August 2022 the Company had C¢Mimitments lo make future minimum lease payments under non- cancellable opefating leases as ftjlknvs: 2022 2021 Not later than 1 year Later than 1 year and not later than S years 14.601 152. 184 13, 712 14.S01 164896 In the (rent year Kent Music entered into an agreomenl for the purchase of the virtual freehold (999- year lease) of units kjcaled in Javelin Way. Ashft>rd. The purchase is being made from Kent County Council at the a9reed purchase price of £1.400.000. The funding of this purchase wll be made a loan of £1.400.000 from Ashford Borough Council. The loan period will be 40 years with the interest being fixed for the duration of the loan at 3.17%. No contract had been Signed as at 31 Augusl 2022 and therefore there is no accounting implication of this arrangement in the Current year beyond a £1 peppercorn renL Page 35