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 s￿ek 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 s￿ek Alicia moY￿S 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 coMm￿ee of trustees. which also acts as the audit commtttee which meets lo support the chief eX￿ul1Ve 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 part￿Ul3r 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 hoU￿Y 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 ￿e￿Ork 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, th￿e 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 resoUr￿S 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 kn￿edge 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 con￿rn 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 a￿ayS 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