Reglstered number: 0546485S Charlty number: 1110639 KENT MUSIC (A company limited by guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
KENT MUSIC IA company limlted by guaranteè) CONTENTS Page Referencè and adrninistfative detalls of the Companyi Its Trustees {at the date of approval of the flnanclal ststementsl and advlsers Trustees. report Independent auditor's ieport on the flnancial statements staternent of financlal actlvities 8-11 12 Balance sheet 13-14 Statement of cash flows 15 Notes to the flnancial statements 16-34
KENT MUSIC IA company limitsd by guarantoel REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS TRUSTEES {AT THE DATE OF APPROVAL OF THE FINANCIAL STATEMENTS) AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2023 Trustees lat thg date of approval of the financial ststements) Geoffrey Miles. Chalr Timothy Leates Sarah Hohler {appoinled by Kent County Council) Francesca Christmas Robin Hammerton Elszabelh Topiwala Kyle sek Alicia Moyles Jessica Cooling Rebecca Evernden Sarah Hamilton lappointed by Kent County Council) Ray Mia Company registergd number 05464855 Charlty registered number 1110639 Reglstered offico Unlls 25 & 26, Crealtve Enterprise Quarter Javelin Way Ashford Kent TN24 8FN Chlef executive officer Peter Botton Independent auditor Crowe U.K. LLP Riverside House 40 - 46 High Street Maidstone Kent ME14 1JH Patron Jools Holland OBE Page 1
KENT MUSIC IA company Ilmfted by guaranteel TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2023 The Trustees present their annual report together with the audited financial slalements of Kent Music {The Charity) for the year ended 31 August 2023. The annual report seNes the purposes of both a Trustees, report and a directors, report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the eurrenl slatulory requirements, the requirements of the charttable company's governing document and the provisions of the Slalemenl of Recommended Practice ISORPI applicable to charities preparing their accounts in accordance with the Financ¢al Reporting Standard applicable in the UK and Republic of Ireland {FRS1021 {effeclive 1 January 2019). Since the Company qualffies as small under section 382 of the Companies Act 2006, the strategic report required of medium anrl large Companies under the Companies Act 2006 {Strategic Report and Directors, Report) Regulations 2013 has been omitted. Structure, go¥ernan¢e and managemont Con$titutlon Kent Music was incorporated as a charitable company limited by gLtarantee on 26 May 2005 and registered as a eharity on 29 July 2005. The charity took over the assets and liabilities of Kent Music School on 1 September 2005. Kent Music School was registered as a charity on 20 November 1969. The Charity wa5 created under a memorandum of association which estsblished the objects and powers of the charity and is govemed under its articles of ass¢xialion. Methods of appointment or elgctFon of Trustees The management of the charity is the responsibilty of the trustees who are elected under the temis in the article5 of association. Kent Music is keen to ensure that the board of trustees includes a broad base of relevant skills and experienoe. The method adopted for the iecruilmenl and appointment of trustees is that vacancies are advertis&d and applications are invited. Shoruisted candidates are interviewed by the chair and one other trustee. However, during the year the trLsslees put a freeze on the recruitment of new trustees pending the outcome of the government's consultation geographie5 to be covered by new Music Hubs that are due to come in from 1 September 2024. Trustees The Trustees who sèrved during the year are as follows: Geoff Miles (chair> Tim¢lhy Leales Sarah Hohler {appoinled by Kent County CounciD Francesca Christmas Robin Hammerton Elizabeth Topiwala Lesley-Ann Smith {resigned March 20241 Kyle sek Alicia moYS Jessu Cooling Rebecca Evernden Sarah Hamilton lappoinled by Kent County Councill Ray Mia Page 2
KENT MUSIC (A company limitod by guarlnteel TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 Structures gOV9mance and management Icontlnuedl Chief Executive Peter Bolton Senior Lgadershlp Team Oliwa Edward5 {senior leader. music hub) Trevor James (senior leader. tuition & ensembles) Ruth Roberts (senior leader. operalK)nsl Organlsatlonal structure and declsion-making pollcles The board of Iru5tees of up lo 14 members meets 4 limes a year lo administer the Charty- A chief executive is appointed by the trustees to manage the day to day operations of the charity. There is an executive coMmee of trustees. which also acts as the audit commtttee which meets lo support the chief eXul1Ve and leadership team on matters conceming the day404ay runnin9 of the organisation. Induction traiTring for new trustees is provided and they are al80 offered the opportunity 10 attend other relevant training courses. Poli¢les and objectives The purposes of the charity are the promotion of the performing arts in all their forms, in particularty musie and for this purpose lo provide education, tuition and actNities for the benefit of the public geneially, particularly in the county of Kent and the unttary authority of Methay. Values During the year Kent hrfusic undernent an exer¢ise to redefine ils values.11 Ltndertook surveys and consullalions with key stakehcAders at the end of which the following value set was agreed.. Creativity A¢hievement Inclusion Awareness Joy - we champion creatiwty, nurture imagination and spark inspiration - we empower people to progress and excel - we open doors. f051ering inclusivity and accessibility - we recognise the impact of our actions and make ethical and infomied choices - we encourage fun, seeking enjoyment and opportunities for celebration Mission Kent Music is a strategic musiG organisalion for Kent. providing and facilitating muslc education, inspiralion and support for learners. schools. teachers. musicians and audience$. Core alms To provide access lo instrumental and vocal teaching across Kent. To promde access to a broad range of oul-of-school music activities across Kent. To create the conditions where music thrives in schools in Kent. Page 3
KENT MUSIC IA company lirnited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR TrIE YEAR ENDED 31 AUGUST 2023 Structure. governance and managamgnt Icontinuedl Pay policy for key management personnel Kent Music's pay policy sets out how pay for all staff will be reviewed including key management personnel. When senior staff appointments are made, a benchmarking exercise is carried out to establish pay levels. Flnancial risk management The Tlustees have assessed the major risks to which the Company is exposed. in partUl3r those related to the operations and finances of the Company, and are satisfied that systems and procedures are in place to miligale exposure to the major risks. Plans for futuro periods A new business plan has been designed and started in September 2021. The plan draws on the exporience of the 2020121 academic year lo plot a path to recovery arld into a period of growth. The focus of the plan is on four core aims- providing instrumental & vocal luilion lo as many students as possible across the counlw, providing students access to a broad range of out-of-school music activities.. creating the conditions where music thrives in Kent h0O15., and supporting and developing Ihe workforce. These core aims will be supported by plans for inciusion, youth voice, partnership working. income generation, communication and digital technology. A¢hlgvements and Perfomiance Pollcles and obje¢tlve$ Charging and remissions policy Kent MLSSIC has a charging and remissions polry designed lo remove as many barriers to music education as possible. The policy covers the following.. Kent Music's tuition fees aim to recove¥ the hoUY rate paid to the teacher. the cost of providing DBS checks. the c05t of hiring leaching venues and a small contribution to the overheads of Kent Music. We run a whole class instrumental leaching programme that provides every thild in Kent the opportunity lo havg free instrumental leaching for one hour per week. We receive subsidy from Kent County Council that enables us to provide a eOrk of out of school music cenlres and county ensembles and choirs al a subsidised rate. other projec15 and piogrammes run by Kent Music are provided for a small charge or free. This includes Pfofe5sional development courses for teachers, large scale celebialion even15 for seh¢Jols, the Kent Music Roadshow and occasional short4emi pr(4ects. A bursary s¢heme funded by part of the grant from Arts Councsl England and other ad hoc grants and legacies supports 75% of the c05t of tuition fees for children & young people who fall into various categories for stsle benefits Page 4
KENT MUSIC {A company Ilmlted by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 Achlevements and Performan¢e {¢ontinuedl Revlew of actlvltigs During the year sludenl numbers continued to recover from pandemic levels and al the end of th¢ year we were leaching just under 1.000 students in one.Io-one and small group lessons. Olrr Whole Ctass Ensemble Teachin9 programme. MusicPlus, also grew through the year starting wth 123 projects in 81 schools al the stsrt of the academic year and ending the year with 141 project5 in 92 schools. The number of schools buying us in for music activities increased through the year fiom 20 at the start of the year to 40 by the end of the year. This was the first year that our music cenlres had been open for a full year since the pandemic. Durin9 the course of the year plans were pul in place lo move Medway Towns Music Centre from Fort Pill Gfammar School in Chatham to the St. Joseph Williamson Mathematical School in Rochester. Kent County Youth Orchestra, Kent Youth Wind Orchestra and Kent Youth Choir ran a full set of courses during the year. To mark the start of Kent Music's 75th year Kenl County Yolth Orchestra gave a perfomiance of Absolute Jest by John Adams- one of the most Challenging pieces the orchestra has ever played. The orchestra was joined by the Sacconi String Quartet, the of whom are alumni of the orchestra, and we are grateful to the Oak Foundation for supporting their involvement. Kent Music Summer School continued to thrive and colebraled ils 75th year al Benenden School. 333 students attended summer School courses which is an In¢a$a on 309 in the previous year. In addition primary school students attended an 'experience' day where they had the opportunity lo perform in the new concert hall and visrt aclimties takin9 place around the sile. Kent Music's roadshow, featuring three of our most experienced teachers. perfomied in schools throughout the county every Monday during lemi time, reaching approximately 10,000 children. Music Educatlon Hub During the yeaf Arts Coun¢il England undert¢)ok a national consuttation on the question of geographical areas for the new music hubs due to come into effect ffom September 2024. The chief executive attended a focus gfOUP in London and the senior leadership team contributed lo a Survey. In June 2023 the Department for Education annoLtnced that the current number of 118 MUS hubs wll reduce lo 43 and that Kent and Meoknay will merge into a single music hub organisalion. Over the summer work look place to prepare a bid to b8come the HL¢b Lead Organis81ion for the new Kent & Medway Hub. The outcome of the bid will be known in April 2024. Organisational change In September 2022 Kent Music moved to a r¢ew building in Ashford as part of a new Cultural quarter in Javeli Way. The new building enabled the organisalion lo bring all of rts adminislralion & management staff. musi¢al inslrumenls. equipment and library under one roof for the first lime. The building is being purchased from Kent County Council with a loan from Ashford Bofough Council. This is a significant (Jevelopmenl for the organisation because it reduces the cost of premise5, makes running activities much more efficient and improves communication between drflerenl part5 of the organisalion. Also, in September 2022 a new staff structure was put in place, foll¢)wing a eonsuhation that was ieported on in last year's review. Page 5
KENT MUSIC (A Company Ilmfted by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 Achievements and Perfomiance (continued) Golng concern After rigorous scenario planning we can confidenuy say that rt is wrrecl to prepare these slalemenls on the going concem basis because wo have a stable level of income from tuition, in$tnJment hire and school opportunities which is independent of fvnding. Kent County Counul have eonfimed that they wish to continue to 8UPPOrt Kent Music with a Grant of £175.000 from April 2024 to March 2025. Arts Council England (ACE) have confirmed that funding to music hubs will remain al current levels until August 2024. In advance of August 2024 there will be a bidding process lo run music education hubs when funding fr>r an unspecified period beyond September 2024 will be confirmed. While there is uncertainly over the future level of funding from ACE we have a high level of free reseNes which are in èxcess of our TeseNe policy and these will be utilised to support Kent Music through a transiti¢)n period should the charity no longer be the Hub Lead Organisalion. Flnancial review ReseNes policy The charity has a target level of free reservès of three months, worth of unreslr*cted expenses this is CiTCa £270,000. We currently have general reserves of £1,556.683 12022.. £1,569,188) wfth free reserves of £1,433.23912022.. £1,482,900). For a detailed breakd¢)wn please see page 27. Free reserves are held for the following evenlualilies.. To cover potential fluctuations in funding from grants while costs are adjusted. To cover a shortfall on the annual budget due to unforeseen expenses. To provide option5 in our approach lor purchasing Javelin Way. To allow Kent Music to explore opportuniiios in line with ils charitable objectives. In addition the folltswing sums are held in reseNe.' An end¢)wment fund of £333,694 resulting from a gift to the charity by Mrs D Baker Restricied funds of £2,270,100. Rlsk Management The charity malnlains a risk register that Sets out the major risks in the following ¢alegories.' delivery.. govemance and management., financial management and resilience- repulalional risk.. and Iransilional fisk. The risk register is updated for each board meeting and the changes since the previous board meeting are brought lo the attention of the trustees who discuss 8nd agree any action that is required. Guarantees Members of the ch8rity guarantee lo contnbute an amount not exceeding £1 to the assets of the ¢harf(able company in the event of winding up. The totsl number of sueh guarantees al 31 August 2023 was 13 {2022.'12}. The trusteès have no beneficial interest in the charitable company. Infomiatlon on Fund Ralslng actlvltigs Kent Music complies with sector best practice. There were no complaints in relation lo fundraising during the year and no professional fundraisers or commercial partners conducted fundraising as repre5enlalives of Kent Music. The trustees have begn made aware of the Fundraising Regulalorfs 2019 Code of Fundraising Practice which is 8pplied lo all fundraising activities. P8ge 6
KENT MUSIC IA company limited by guarantee) TRUSTEES, REPORT {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 Statement of Trustees. responsibilities The Trustees (who are also the directors of the Company for the purposes of company lawl are responsible for preparing the Trustees, report and the financial slalements in accordance wlh applicable law and United Kingdom Accounting Standards {United Kingdom Generally Accepted Accounting Practicel. Company law requires the Trustees to prepare financial statements for e8ch financial year. Under company law. the Trustees musl not approve the financial statements unless they are satisfied that they give a true and fair view of the slate of affairs of the Company and of r(s incoming resources and application of resources. including ils income and expenditure, for that peritxl. In preparing these financial statements. the Trustees are required to.. select suitable accounting policies and then apply them consi5tently' observe the methods and principles of the Charities SORP IFRS 1021.. make judgments and accounting eslimales that are reasonable and pNdent'. stste whether applicable UK Accounting Standards IFRS 102) have been followed. subject lo any material departures dise105ed and explained in the financial slalements., prepare the financial statements on the going concern basis unless it is inappropfiale lo piesume that the Company will Continue in business. The Trustees are responsible for keeping adequate accounting records that are sufftcient lo show and explain the Company's transactions and ¢Jis¢lose with reasonable accuracy at any time the financial position of the Company and enable them to en$ that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable Steps for the prevention and detection of fraud and other irregularities. Dls¢lo$ure of Information to auditor Each of the persons who are Trustees at the lime when this Trustees, report is approved has confirmed that.. so far as that Trustee is aware, there is no relevant audit information of which the charills aLtditor 1$ unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information. Audltor The auditor, Crowe U.K. LLP. has indicated his willingness to continue in office. The designated Trusle&s will propose a motion reappointing the auditor al a meeting of the TrL+slee$. Approved by order of the members of the board of Tiusle85 and signed on their behalf by.. Gèoff Miles (Chair) Date.. za £oLLt Pago 7
KENT MUSIC (A company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KENT MUSIC Oplnion W9 have audited the financial statements of Kent Music Ilhe'charitabfe companll for the year ended 31 August 2023 which comprise the statement of financial activities, the balance sheet. the statement of cash flow5 and the related notes, including a summary of signrficar*t accounting policies. The financial reporting framework that has been applièd in their preparation is applicable Eaw and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financtal Reporting Stsndard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting PTaclice}. In our opinion the financial slalèments.. gNe a true and fair Mew of the slate of the charitable company's affaifs as at 31 August 2023 and of ils incoming resoUrS and application of resources. including ils income and experidsture foi the year then ended., have been properly prepared in accordan¢e wth United Kingdom Generally Accepted Accounting Pracli¢e', and have been prepared in accordance with the requirements ol the Companies AGI 2006. Basis for oplnion We conducted our audit in accordance with Inlefnalional Standards on Auditing IUK) IISAS IUKI} and applicable law. Our responsibilities under those standards are further described in the Auditorfs re5ponsibililies for the audit of the financial slalements sedion of our report. We are independent of the charitable company in occgrdance with the ethical requirements that are relevant lo our audit of the financial statements in tho United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requiremen15. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for OUT opinion. Coneluslons relatlng to golng concern In auditing the financial slalemenls, we have concluded that the Truslegs. use of thg going concem basis of accounting in the preparation of the financial ststements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo event5 or conditions that, individually or colledively, may cast significant doubl on the charitable companls ability to continue as a going concern for a period of al least e1ve months from when the financial slatem&nts are authorised for issue. Our responsibilities and the responsibilities of the Trustees with iespect to golng coneern are described in the relevant sections of this Teport. Page 8
KENT MUSIC IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KENT MUSIC ICONTINUEDI Other Informatlon The other information comprises tho information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained kwlhin the annual report. Our opinion on the financial statements does not cover the olher information and, except to the exlent otherwise explicitly slated in our report, we do not express any fom of assurance conclLtsion Ihereon. Our responsibilty is Its read the other infomialion and, in doing so. consider whether the other information rs materially inconsistent with the financial ststements or our knedge obtained in the course of the audrt, or otherwise appears lo be materially misslaled. If we hlenlify such material inconsistencies or apparent material misslalemenls, we are required to determine whether this gives Tise lo a material misslalemenl in the financial ststements Ihemserves. If, based on the work we have perfonned. we conclude that there is a material misst8lemenl of thi5 Other infomialion, we are required lo report that fact. We have nothing to report in this regard. Opinion on other mattgrs prescrfbod by the Companies Act 2006 In our opinion, based on the work undertaken in the coutse of the audit.. the inft)rmation gThien in the Trustees. report for the financial year for which the financial slalements are prepared is consistent with the financial slatemenls. the Trustees, report has been prepared in accordance with applicable lègal requirements. Matters on which wg are requlrgd to report by oxceptlon In the light of our knowkdge and understsnding of the charitable company and ils environment obtained in the course of the audit, we have not identified material misslalemenls in the Trustees. report. We have nothing lo report in respect of the following matters in relation to which Companies Act 2006 requires u$ to report to you rf. in our opinion.. adequate acwunling fecords have not been kept, or returns adequate for our audf( have not been received from branches not vis((ed by us,. or the financial statements 8re not in agieement with the accounting records and retums,. or rtain disdosures of Trustees, remuneration specified by law are not mode,. or we have not recesved all the information and explanations we require for our audit., or the Trustees were not enlrtled lo prepare the financial ststemenls in accordance with the small companies regime and take advantage of the small companies. exemptions in preparing the Trustees, report and from the requirement lo prepare a Strategic report. Page 9
KENT MUSIC IA company limlted by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KENT MUSIC ICONTINUEO Responslbllltles of trustees As explained more fully in the tru61ees' responsibilities slalement, the Trustees (who are also Ihe directors of the Charitable company for the purposes of company lawl are responsible for the preparation of the finanGial slalemenls and for being satisfied that they give a true and fair wew, and for such internal control as the Trustees determine 1$ necessary to enable the preparation of financial statements that are free from material . misslalement. whether due to fraud or eNor. In preparing the financial slalemen15, the Trustees are responsibte for assessing the charitable company's ability to continue as a going concem, disclosing, as applicable, mallers related lo going conrn and usirkg the going concem basis of accounting unless the Tnjslees either intend lo l¢quidate the chantable company or lo cease operations, or have no realisl¢c allematNe but to do so. Audltorfs responsibllitles for the audlt of the financlal statements Our objectNes are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due lo fraud or error, and to iSSLFe an audilorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will aayS delect 8 material misslalemenl when il exists. Misstatements can 8r¢se from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expeded lo influence the economic decisions of users taken on the basis of these financial slalements. Irregularities, including fraud, are instances of non<ompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo detect material misstatements in respect of irregularities. including fraud. The extent lo which our pr¢xedures are capable of detecting irregularities, including fraud is detailed below.. Enquiry of management including considerations of known or suspected instances of non•compliance with laws and regulations and fraud. Reviewing minutes of meetings of those charged with g¢)vemance. Reviewing financial statement disclosures and lesling lo supporting do¢umenlalion to assess complian with applicable laws and regulations. Identifying and testing journal entries. in particular any joufnal entries posted with unusual account combination. Designing audit procedures to incorporate unpredictabiltty around the nare. tining or extent of our testing. Because of the inherent limitations of an audit, there is a risk that we will not delecl all irregularities, including those leading to 8 material misststemenl in the financial slalemenls or non-compliance wlh regulalton. This risk increases tho more that Complian with a law or regulation is removed from the events and transacb'ons reftected in the financial slalemenls, as we will be less likely to become aware of instances of non-cotnpliance. The risk is also greater regarding irregularities occurring due lo fraud rather than error, as fraud involves intentional concealment. foigery, collusion. omission or misrepresentation. A fvrther description of our responsibilities for the audit of the financÉal statements is tocaled on the Financial Reporting Council's website at.. frc.or klauditorsres onsibi ilies, Thi5 descriptson fomis part of our audilorfs ieport Page 10
KENT MUSIC IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KENT MUSIC ICONTINUEDI Use of our report This report is made solely to the eharilable companls trustees, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the eharitable company's trustees those mallers we are required lo slate to them in an audilorfs report and for no other purpose. To the fullest extent pemitted by law. we do not accept or assume responsibilty lo anyone other than the charilabte company and its membeTS, as a body, for our audit work, for this report, or for the opinions we have fomied. lan Wagkos {$gnlor statutory audltorl for and on behalf of Crowe U.K. LLP SlatLrtoryAuditor Riverside House 40- 46 High Street Maidstone Kent ME14 1JH Date.. 26 March 2024 Page11
KENT MUSIC {A company IlmEted by guarant991 STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 AUGUST 2023 Unrestricted funds 2023 Restricted Endowment funds funds 2023 2023 Total funds 2023 Total funds 2022 Note Income and endowmonts from: Donations and legacies Charitable a¢livities Investments 10.083 920.732 10.433 10.083 4.210.717 10,433 3,638 3.221.415 1,436 3.289.985 Totsl IoMe and andowments 941,248 3,289,985 4,231.233 3.226.489 Exp&ndSture on: Charitable activities 931,753 2,183,277 3,115.030 3.202.311 Total expenditure 931,753 1183,277 3,115.030 3,202.311 Net movement In funds before other recognised galnslllossesl 9.495 1,106,708 1,116,203 24,178 Other recognlsed gainsl(Ios5e$l'. Aduarial {lossesllgains on defined benefit pension schemes Net movement In funds 23 122,0001 122.0001 469.000 112.5051 1.106.708 1.094.203 493. 178 Reconclliatlon of funds: Total fvnds brought foward Net movement in funds 1,569,188 112.5051 1,163,392 1.106.708 333,694 3.066.274 1.094.203 2,573.096 493. 1r8 Total funds carrled foThvard 1.556.683 2.270.100 333,694 4,160,477 3,066,274 The Slatemenl of financial activities includes all gains and losses recognised in the year. The notes on pages 16 to 34 fomi part of Ihese financial slalements. P?ge 12
KENT MUSIC (A company limited by guarant99) REGISTERED NUMBER: 05464855 BALANCE SHEET AS AT 31 AUGUST 2023 2023 2022 Note Flxed assets Tangible assets 123.444 86,288 123,444 86,288 Current assets Debtors Investments Cash at bank and in hand 12 13 2.482,002 333,694 1,655,975 1,324,386 333.694 1,528. 112 4.471.671 3, 186, 192 Creditors-. amounts falling due wtthin one year 14 {414,638) (186.206) Net current assets 4,057.033 2,999.986 Total asset$1o$5 current liablllties 4.180.477 3,086.274 Prowsions for liabilities {20,0001 (20.000) Net assets excluding pension a$$et 4,160,477 3,066,274 Total nèt assets 4,160,477 3,066,274 Charity funds Endowmentfunds Restricted funds Unreslricled funds 16 333,694 2.270.100 1.556,683 333,694 1, 163,392 1,569, 188 16 16 Total funds 4,160,477 3,066.274 The entity was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not required tha enlty lo oblain an audit for the year in question in accordance with section 476 of the Companies Act 2006. However. an audit is required in accordance with 5ectron 144 of the Charities Act 2011. The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect lo acUntIng records and preparation offinancial statements. Page13
KENT MUSIC A company limtted by guarantee) REGISTERED NUMBER: 05464855 BALANCE SHEET (CONTINUED} AS AT 31 AUGUST 2023 The financial ststements have been prepared in accordance wth the provisions applicable lo entities subjed lo the small companies reglme. The financial slalements were approved and aulhorised for issue by the Trustees and signed on their behalf by.. Tlmothy Leates Dale.. Iz[3/21k The note$ on pages 16 10 34 fomi part of these financial slalements. Page 14
KENT MUSIC (A company limited by guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023 2023 2022 Note. Cash flows from operatlng activities Nel cash used in opefating actim1$ 18 199,815 17,867) Cash flows from investing a¢tivltles Dmdends. interests and rents from investments Proceeds from the sale of tangible fixed assets 12.320 184.2721 1.469 (5,487) Net Cash used in investing aclivitles {71,952) {4.0181 Cash flows from flnanclng actlvlties Cash inflows fr financing Net cash provlded by financing activlties Change in cash and ¢ash equlvalents In the year Cash and cash equivalents al the beginning of the year 127,863 1,528,112 (11.88SI f.$39,99T Cash and ¢a$h equSvalents at the end of the year 19 1,655.975 1.528, Y12 The notes on pages 16 10 34 fom part of these financial slalemenls Page15
KENT MUSIC IA company Ilmltod by guarante0} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Charity information The princspal acliwty of the entity dvfing the year was the piovision of music education. The charity is a charitable company limited by guarantee which is Incorporated and registered In England and Wales105464855). The address of the Registered office is.. Units 25 & 26, Creative Enl¢rprise Quarter. Javelin Way, Ashford, TN24 8FN Accountlng pollclg$ 2.1 Basls of preparatlon of flnancial statements The financial slalemenls have been prepared in accordance w(ih the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to ¢harilies preparing their a¢¢ounts in accordance wrth the Financial Reporting Standard applicable in the UK and Republic of lieland {FRS 1021 {effeclive 1 January 20191. the Finanal Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 and the Companies Act 2006. K8nl Music meets the definition of a public benefit entty under FRS 102. Assets and liabilities ar& initially recognised at historical cost or transaction value unless otheise slated in the relevant aecountsng pcAicy. 2.2 C<Hnpany status The company is a company limited by guarantee. The members of the company are the Trustees nameil on page 3. In the event of the company being wound up, the liability in respect of the guarantee is limited tts £1 per mèmber of the eompany. 2.3 Golng concern After rigorou5 scenario planning we can confidently say that it is ¢OFre¢l lo prepare these 51atementS on the going concern basis because we have a stable level of income from tu(£ion, instrument hire and h0o1 opportunities which is independent of funding. Kent County Council have confimed that they wsh to continue to support Kent Music with a Grant of £175.000 from April 2024 to March 2025. Arts Council England IACEI have confirmed that fundit)g lo music hubs will remain al current Eevels until August 2024. In advance of August 2024 there will be a bidding process lo fun music educalson hubs when funding for an unspecified period beyond September 2024 will be confirmed. While there is uncertainty over the future level of funding from ACE we have a high level of free reserves whicl) are in excess of our reserye policy and these will be ulilised lo support Kent Music through a transition period should the charity no longer be the Hub Lead Organi5alion. Page 16
KENT MUSIC IA Company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Accountlng pollcles {contlnu&d} 2.4 Income All income is recognised once the Company has enlillemenl lo the income, (( is Probable that the income will be Teceived and the amount of income receivable can be measured reliably. Grants are included in the stslement of financial activities on a receivable basis. The balance of income recewed lor specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of enlillemenl of receipt, its reeognition is deferred and included in ¢d(Or$ as deferred income. Where entitlement occur5 before inwme is received, the income is accrued. Income tax recoverable in relalton to investment incom8 is recognised at the time the investment income is receivable. Teaching income is recognised in the period in whi¢h it 1$ receivabte and lo the extent the lessons have been PTovided or on completion of the servi. For legacies, enliltemenl 15 taken as the earlier of the dale on which either.. the company is aware that probate has been granted, the eslale has been finalised and notification has been made by the exe¢ulor{sl to the Charty that a distribution will bè made, or when a distribution 15 received from the eslale. ReIpl of a legacy, in whole or in part. is onty ¢onSided probable when the amount can be measured reliably and the company has been notified of the executorfs intention lo make distribution. Where legacies have been notrfied to the company. or the company is aware of the granting of probate, and the Criteria for income recognilign have not been met, then the legacy is treated as a conlingenl asset and disc105ed if matertal. 2.5 Expendlture Expenditure is fe¢ognised once there is a legal or conslr¥Jctive obligation to transfer economic benefit to a third party, il is probable that 8 transfer of economic benefrts will be required in settlemerit and the amount of the obligation can be measured reliably. Expendrture is classified by activity. The costs of each activity are made up of the total of direct Costs and shad costs, including support $1$ involved in undertaking each actiwty. Dire¢l costs attributable to a single activity are allocated diwlty lo that activity. Shared costs which contribute to mole than one activity and support Costs which are not attributable lo a single actimty are apportioned between those activities on a basis consistent with the use of ¥esour¢es. Cenlial staff Costs are allocated on the basis of lime spent. and depreciat charges allocated on the portion of the asset's use. Expenditure on charitable acltvilies is incurred on d1Ctty undertakin9 the activibes which furthef the Company's objectives, as well as any assoualed support costs. Charitable actmties and Governance costs are Costs incurred on the company's operations, including support C05t8 and costs relating lo the govemance of the company apportioned lo charitable activities. Ali expenditure is inclusive of irrecoverable VAT. Page 17
KENT MUSIC (A company limited by guarantsa) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Ac¢ounti119 policies Icontinuedl 16 Tangible fixed assets and depreciation Tangible fixed assets costing £200 or are capilalised and recognised when future enOmiC ben&ffts are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognis9d al cost. After recognrtion, under the cost model, tangible fixed assets are measured al cost less accumulated depreciation and any accumulated impairment losses. All costs incurred lo bring a tangible fixed asset into ils intended wottting condition should be included In the measurement of eosL Dep¥ecialion is charged so as lo allocate the cost of tangible fix$d ass¢ls less thetr residual value over their estimated useful INes. Depreciation 15 prowded on the followng bases.. Long Temi Leasehold Property Over the temi of the lease Fixtufes. fitting6 and equipment 3.330h-250/• slraighl line Instruments 40kn33OA straight line Al the beginning of the year, management decided il would be more relevant lo change the fixtures, fittings and equipment Meth from the reducing balance method to the straight line method. This change has been made prospecttvety from the beginning of the year. If the change had not been made, Ihis would result in a NBV increase of £11,834, which is not malerial to the accounts. 2.7 Dabtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.8 Cash al bank and In hand Cash at bank and in hand includes cash and short-lerm highly liquid investments with a short maturity of three months or less from the dale of acquisition or opèning of the deposit or similar account. 2.9 Llabllltles Liabili(ies and provisions are recogni5ed when there is an obligation al the balance sheet dale as a result of a past event. it is probable that a transfer of economic benefit will be required in settlement. and the amount of the settlement can be eslimaled reliably. Li8bilf(ies are recognised al the amount that the Company anticipales11 will pay Io settle the debt or the amount it has received as advanced Paftent5 for the goods or seFvices il must provide. Provisions are measured at the best estimate of the amounts required lo setue the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted al the pre-tsx discount rate that reflects the risks specrfie to the liability. The nwinding of the discount is recognised in the statement of financial act¢vities a$ a finance Cost. Page18
KENT MUSIC (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Accountlng policies (continued) 2.10 Flnanclal Instruments The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially ¥e¢ognised al transaction value and subsequently measured al their settlement value wlh the exception of bank loans which are subsequently measured at amortised cost using the effeclsve interest method. 2.11 Operatlng leases Rentals paRd under operating leases are charged lo the slalement of financial activi(ie5 on a 5traighl line basis over Ihe lease lemi. 2.12 Pgnslons The ¢harity operate5 a defined contribution pgnsion $¢heme and the pension charge represents thg amounts payable by the company to the fund in respect of the year. The charity previously operated a defined benefrts pension scheme and the pension Charge is based on a full actuarial valuation dated 31 March 2022 and updated to the 31st August 2023. 2.13 Fund accountlng General funds are unreslricled funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trust for particular purposes. The aim and use of each designated fund is set out in the notes to the financial slalemenls. Reslricled funds are funds which are to be used in accordance with specific restrietions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising 8nd administerin9 such funds are charged against the specific fund. The aim and use of each restricted fund is sel out in the notes lo the financial statements. Investment income, gains and kjsses are allocated to the appropriate fvnd. Page 19
KENT MUSIC (A company Ilmlted by guarantg?) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Crffjcal a¢counting estimates and areas of judgment Eslimales and judgments are continually evaluated and are based on historical experience and other factor5, including expectation5 of future even15 that are believed lo be reasonable under th& circumstances. Critical accounting estimates and assumptions.. The company makes estimates and asgLtmptions coneerning the future. The resulting accounting ests"mates and assumptions will, by definition. seldom equal the related actual result5. The estimate5 and assumptions that have a signrficant risk of causing a material adjustment to the carrwng amounts of assets and liabilities within the next financial year are discussed below. 11 The present value of the Local Government Pension Scheme defined benefit fund depends On a number of factors that are detemiined on an actuarial basis using a variety of assumptions. The assumptions used in delemiining the nel cost lincomg} for pgnsions inclL¢de the discount rate. Any thanges in these assumption5, which are disclosed in note 24, will impact the carrying amount of the pension fund. Fvrthemiore a roll forward approach which projects resutts from the latest full actuarial valuation perfomied a131 March 2022 has been used by the actuary in valuing the pensions fund at 31 AugLt$t 2023. Any differences betseen the fi9ures derived from the roll forward approach and a full actuarial valuation would impact on the carying amount of the pension ftjnd. The liabilty has also been calculated using mortality rates used by the UK goveinmenl Income from donatlons and legacles Unre$tri¢ted funds 2023 Total fund$ 2023 Tolal funds 2022 One off donations by individuats 10,083 10,083 3,638 Page 20
KENT MUSIC IA company1Smlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Income from charitable activities Unrestricted Restricted funds funds 2023 2023 Total funds 2023 Total funds 2022 Tuition fees Kent County Council Instruments hire fees Concert fees and admission charges Other income Grants Coronamrus job rdention scheme 734.902 119,000 59,906 3,016 3,908 734,902 f 19,000 59,906 3,016 3.908 3.289.985 754,992 204,000 61,118 2.566 755 2, 189,806 8,178 3.289.985 920,732 3,289,985 4,210.717 3.221,415 Total 2022 1.031,609 2, 189,806 3,221,415 Investmont Income Unrestricted funds 2023 Total funds 2023 Tol81 funds 2022 Investment incorne 10,433 10A33 1,436 Pago 21
KENT MUSIC (A company limlted by guarantea) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Anatysls of expendltuyo by Fund type UnrgStrl¢tgd R8$tricted funds funds 2023 2023 Total funds 2023 Tol funds 2022 Pension finan¢& costs staff costs Trave5 costs In5trurnenl costs Staff training and recruilmenl Operating lease rentals Accommodation, compulel and office costs Other expenses Other teaching and adminislralive costs Bursaries {ProfitllLoss on disposal of fixed assets Trustees, Indemnity Insurance Professional fees School funding Lrfe insL2ran¢e Depreciation and amortisation 8,250 318.669 51.408 8,250 1.860.448 51.408 18.291 24,224 7.290 358.457 147.674 57.693 140,421 2.201 $54 63.683 302,744 5,926 65,766 1,541,779 1,878,546 33. 774 46.8Tr 25,089 104,960 244,688 84.114 42,036 150, 168 {206J 896 53,530 484, 626 7,210 37.003 18,291 24,224 7,290 245,909 147,674 14.423 112.548 43,270 140.421 2,201 554 63,683 302.744 5,926 65,766 931.753 2,183.277 3,115,030 3.202.311 Total 2022 860,OT4 2.342.237 3,202,311 Audltorfs remuneratlon 2023 2022 Fees payable lo the Company's auditor for the atjdil of the CoMpanS annual accounts 15.000 11,2LKI Fees payable lo the Companls auditor in respect of.. Preparation of the financial statements 3,000 Page 22
KENT MUSIC IA company Ilmlted by guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Staff costs 2023 2022 Wages and salaries Social securfy costs Contribution to defined eonlribulion pension schemes 1,698.370 117.231 44.847 1. 707, 124 126,840 44,582 1,860,448 1,878,546 The average number of persons employed by the Company during the year was as follows.. 2023 No. 2022 No. Teachers Administration 89 30 108 43 119 151 The number of employee8 whose employee benefft3 (excluding employei pension costs) exceeded £60,1)OQ was.. 2023 No. 2022 No. In the band £90,001- £100,000 In the band £100,001- £110,000 The senior management team comprised the Chief Executive, senior l$ader, music hub, senior leader, tuition & ensemble5 and senior leader, operations. The total remuneration of key management personnel in the year was £245,52512022- £248,266). Page 23
KENT MUSIC IA Company Ilmited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 10. Trustees. remuneration and expenses During the year ended 31 August 2023, no Trustees received any remuneration or other benefits12022 - £Nill. During the year ended 31 AugL¢sI 2023. no expenses were reimbursed or paid directly lo any Trustee (2022- £nill. 11. Tangible fixed assets Long-temi Flxturgs, leasehold fittlng$ and property equipment Instmment$ Total Cost or valuation Al 1 September 2022 AddilK)ns Disposals 75,919 153,399 76,272 {19,3831 676,830 28,850 187,208} 908,148 105,122 {182,510) {75,9191 At 31 AugL¢St 2023 210,288 618,472 828,760 Depre¢iatlon Al 1 September 2022 Charge for the year On disposals 75.919 120.495 25,061 118.S54) 623.446 40,704 (85,8361 819,860 65,765 1180,309) 175,919} Al 31 August 2023 127.002 578.314 705.316 Net bookvalue Al 31 August 2023 83.286 40,158 123,444 At 31 August 2022 32,904 53,384 86,288 Page 24
KENT MUSIC (A company limlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 12. Debtors 2023 2022 Due within one year Trade debtors other deblois Prepayments and accnjed income 35.197 127,291 2,863 1, 194,232 2.446.805 2.482,002 1,324,386 Closing accrued income is made up from grants which have mel the enlrtlement criterea bul which relate to future accounting periods. The change in timing of the Arts Council England grant in the Gurrent year means that 8ccrued amounts are higher as al 31 August 2024. 13. Current asset investments 2023 2022 Unlisted investments 333.694 333, 694 14. Creditors: Amounts falling due within one year 2023 2022 Trade creditors Other laxalion and social security Other credrtors Accruals and defeffed income 690 34,981 35,445 343.522 4,808 36, 128 23,768 121,502 414,638 186,206 15. Financial instruments 2023 2022 Flnanclal assets Flnancial assets measured at fair value through income and expenditure 1.989.669 1,861,806 Page25
KENT MUSIC IA Company Ilmlted by guarant991 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 16. Statement ot lunds Ststoment of funds- current year Balance at 1 September 2022 Balance al Gainsl 31 August (Losses) 2023 Transfers Inlout Incomo Expondlturg Designated funds Fixed Asset Fund 86.288 165.7661 102,922 123A44 General funds General Funds- all funds 1,482,900 941,248 {865,9871 1102,922) 122,0001 1,433,239 Total Unrestricted fund$ 1,569.188 941,248 1931.7531 (22,000) 1.656.683 Endowment Funds 333,694 333.694 Restrlcted funds KYWO instrument fund Bursary fLtnd Kent Youth Choir (KYCI 11,865 37.091 (5,850} (3.389} 6,015 33,702 3,078 10,724 3,078 10,724 Youth Music Arts Council England D A Baker Endowment Kent County Council 1.089.856 3.113,098 12,005,554} 2.197.399 10,779 1,887 {12,666) 175,000 {155.8181 19.182 1,163,392 3,289,985 12,183,277) 2,270,100 Total of funds 3.066.274 4.231,233 13.115,0301 122.0001 4160.477 Page 26
KENT MUSIC IA company limited by guarante91 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 16. Statement of funds Icontinuedl Statement of funds - prior year Balance al I September 202t Balance al 31 August 2022 G8in (Lossesj Income Expenditure Deslgnated funds Fixed asset fund 117.808 (31,520) 86.288 Goneral funds General Funds- all funds Pension reseNe 1,281,771 (476,000) 1,036,683 (828,554) {7.000) 1,482,900 476.000 805, 771 1,036.683 (828,554) 469,000 1,482.900 Total Unrestri¢ted funds 923,579 1,036.683 (860.074) 469,000 1.569, 188 Endowment Funds- all funds 333,694 333,694 Restricted funds KYWO instrument fund Bursary fund Kent Youth Choir IKYCI Youth Music Arts Council England D A Baker Endowment 11,865 37.091 3.078 8.546 1.244,464 10. 779 11,865 37,091 3,078 10.724 1,089,855 10, 779 11.178 2. 178,628 {9,000) (2.333.237) 1,315,823 2, 189,806 (2,342,237J 1,163,392 Total of funds 2,573,096 3,226,489 13,202,311J 469,000 3,066,274 Page 27
KENT MUSIC IA company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 16. Statement of funds Icontinuèd} Purpose of rostridad funds (il The Kent Youth Wind Orchestra inslwment fund relates to funds feceived ft)r the benefit of the Kent Youth Wind Orchestra. (ill The bursary fund relates to incgme recewed specialty to assist students with the cost tuitton fees. {iiil The Kent Youth Choir fund is a donation received from Medway Opefa when rt closed and ielales lo the un5penl balance of monies received. {ivl Youth Music is the unspent balance of funds received from the Nation81 Foundation for Youth Music foi the wnplelion of a project. {v} The Arts Council England fvnd is funding from Arts Council England lo deliver the core and extension roles of the music edu¢alion hub for Kent. Ivi} The O A Baker endowment fund is a fund left to Kent Music lo support music tuition for children in Wesl Kent. The figures in Unrestficted Funds relate lo the annual income and expenditure derived from the interest earned on the capital sum. In the currenl year there has been a change in the liming of the grant receivable from the Arts Council England which brings the funding in line with the academic year. Previously Grant income was confirmed as al 1 April for the 12 month period and was recognised in full at that dale. Costs are wnsidered to be incurr¢d evenly over the term of the grant which was premousty l April lo 31 March. The oulslanding balance therefore historically included 7 months of income which was lo be used from September to March in line wtth the grant temi. In the current year as al 31 August 2023 there is a balance of £2,197,399 which recognises the entire amount confimied in accordan with the aonting policy, but takes into account no costs as the entire amount relates to the post year end period. Purpose of deslgnated funds The Fixed asset fund represents the value of funds invested in fixed assets which are not, by the nature of fixed assets, readily available for other purposes. Page 28
KENT MUSIC IA company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 17. Anatysls of net assets between fund$ Analysls of net assets between funds- curront year Unrestricted Rp$trl¢ted Endowment funds funds funds 2023 2023 2023 Total funds 2023 Tangible fixed assets Current assets Creditors due within one year Provisions for liabilities and charges Difference 123.444 1.712,059 1414,6381 120.0001 155.818 123.444 4,471.671 1414.6381 {20.000) 2,425,918 333.694 1155.818) Total 1.556,683 2,270,100 333,694 4.160,477 Analysls of net assets betsveen funds - prlor year Unreslricled funds 2022 Restricted Endowment funds funds 2022 2022 Total funds 2022 Tangible fixed assets Current assets Cieditors due within one year Provisions for liabilities and charges 86,288 1,689, 106 (186.206) (20,000) 86,288 3, 186, 192 (186,206) (20.000) 1, 163,392 33J,694 Total 1,569, 188 1, 163,392 333.694 3,066.274 Page 29
KENT MUSIC IA MpanY limtted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 18. Rgconclllatlon of net movemont In funds to net cash flow from operating activhies 2023 2022 Nel income for the year las per Statement of Financial Aclivstiesl 1,116,203 24.178 Adjustmonts for: Depreciab'on charges Actuari81 gains Dividends. interests and rents from investments Lossllprofit} on the sale of fixed assets Decrease in StkS Increase in debtors Increase in creditors Non cash Fixed Asset addillons 6S,765 {22,0001 {12,3201 2,201 37,003 (8,263) f206J 1,003 (65.243) 3,661 {1.157.6161 228,432 120,8501 Net cash provlded byllusod.inl operating aGtivities 199,816 (7,867) 19. Analysis of cash and cash oqulvalents 2023 2022 Cash in hand 1,655.975 1,528. 112 Total cash and cash equivalents 1,655.975 1,528, 112 20. Analysls of changos In net debt At1 September At31 2022 Cash flows August 2023 Cash al bank and in hand Liquid investments 1.528.112 333.694 127.863 1.655.975 333.694 1,861,806 127.863 1,989,669 Page 30
KENT MUSIC IA company limlted by guaranteè) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 21. ProvEsion$ Dilapldation provision At 1 September 2022 20.000 20.000 22. A¢tuarfal gains on defined benefit pgn$ion schemes Penslon reservo Total fund$ 2023 Total funds 2022 2023 Net penslon asset in the statement of financlal posltlon Present value of the defined bonefil obligation Fair value of Fund assels Non re¢ognised pension surplus 1,664.000 1,664.000 2, 156,000 12,255,000} (2.255.000) (2,334,OCQ) 591,000 691.000 178,OCK) Total 2023 Page 31
KENT MUSIC {A company limStgd by guaranteg) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 23. Pension commltments The group operates a defined contribution pension s¢heme. The assets of the scheme are held separately frorn those of the group in an independently administe fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £44,84712022 - £44,582) weie payable to the fund al the balance sheet date and are included in credrtors. The Charity also operates a defined benefit pension scheme which is closed lo new members. Thg pension charge is based on a fL%II actuarial valuation dated 31 March 2022, and updated to Ihe 31st August 2023. Principal acluaiial assumptions at the balance sheet date {expressed as weighted averages). At 31 Al 31 August August 2023, 2022 Discount rate Future salary increases Future pension increases RPI increases CPI increases 5A0 4.25 3.85 4.20 2.85 3.35 2.85 3.20 At31 A131 August 2023 Augusl 2022 Years Ye81 Mortality rates {in years) - for a male aged 65 now - al 65 for a male aged 45 now - for a female aged 65 now - al 65 for a female aged 45 now 20.7 22.0 23.2 24.6 21.0 22.3 23.5 24.9 Page 32
KENT MUSIC {A company limited by guarantae} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 23. Pension MMItments Icontinuedl The Companls share olthe assets in the scheme was.. At 31 At31 August August 2023 2022 Equities Gilts Other bonds Property Cash and other liquid assets AbsolLtle relum fund Infraslruclure 1.432.000 13,000 312,000 227,000 24.000 162,000 85.000 1.528.000 14,000 309,000 275.000 40,000 168,OLkl Total falr value of assets 2.255.000 2,334,000 The actual rolurn on scheme 8$gels was £117,¢XIOI {2022- £{31.OOOJ). The amounts recognised in the Statement of financial activities are as foNows'. 2023 2022 Interest cost Adminislralive expenses 18.0001 1,000 Total amount recognised in the Ststemont of flnanclal actlvltles 17,0001 9,000 Movemen15 in the present value of the defined benefrt obligation were as follow5.' 2023 2022 Opening defined benefit obligation Interest on assets Actuarial gains Benefits paid unnded pension payments Non IOgnised pension surplus 2,156,000 2,966,000 90,000 47.L 178,0001 (539.000) 187.0001 f135,OOOJ {4.0001 (5,Ll)OJ 1413,000} {t78,000) Closlng defined benefit obligation 1,664,000 2, 156,000 Page 33
KENT MUSIC (A company Ilmlted by guarant91 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 23. Penslon ¢ommltm&nts Icontlnuedl Movements in the fair value of the Companls share of scheme assets were as follows.. 2023 2022 Opening fair value of scheme assets Aduarial losses Contributions by employer Contributions by scheme pa.¢lpants Benefits paid Adminislrive expenses 2.342.000 {100.0001 1S.000 90.000 {91.0001 11.0001 2,490,0 (70.000) 16,000 47,000 (140.OOOJ (I,oooJ Closing fair value of scheme a$sets 2.255,000 2,342,000 Operating laase comrnitments At 31 August 2023 the Company had commitments to make future minimum lease payments urbder non- cancellable operating leases as follows. 2023 2022 Not later than 1 year Later than 1 year and not ter than 5 years 10.S84 26,327 14.501 36.911 14.501 In the pri¢r year, Kent Music entered into an agreement for the purchase of the Mrtual freehold1999-year lease) of two units kjcaled in Javelin Way, Ashford. The purchase is being made from Kent County Council al the agreed purehase price of £1.400,000. The funding of this purchase will be made Ma 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 3.17tsA. No contract had been signed as at 31 AugLÉSt 2023. and therefore there is no accounting implication of this arrangement in the currenl year beyond a £1 peppercorn rent. Page 34