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2021-09-30-accounts

Company Registration No. 05829570 (England and Wales) Registered Charity Number: 1116213

PRO CORDA TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

PRO CORDA TRUST

CONTENTS

Page
Legal and administrative information 1
Report of the Chief Executive Officer 2
Report of the Trustees 3-7
Independent Auditor’s Report 8-10
Consolidated Statement of Financial Activities 11
Consolidated and Trust Balance Sheet 12
Consolidated Cash Flow Statement 13
Notes to the Financial Statements 14-26

PRO CORDA TRUST LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 30 SEPTEMBER 2020

Charity name: Pro Corda Trust
Registered Charity number: 1116213
Registered Company number: 05829570
Registered Office: Leiston Abbey
Theberton
Leiston
Suffolk
IP16 4TD
Telephone: 01728 831354
Email: mail@procorda.com
Website: www.procorda.com
Co-Founders: Miss P Spofforth, MBE (deceased)
Miss B G Hewlins, MBE (deceased)
Trustees: John Ette (Chair)
Graham Bowler
Jane Fenoulhet
David Ballance
Ina Budh – Raja (Honorary Secretary)
Angela Au
James Shirras (appointed 10 June 2021)
Chief Executive Officer: Andrew Quartermain
Auditors: Ensors Accountants LLP
Connexions
159 Princes Street
Ipswich
IP1 1QJ
Bankers: Royal Bank of Scotland
Drummond House (AB) Branch
Drummond House
1 Redheughs Avenue
Edinburgh
EH12 9JN
Solicitors: Marshalls
102 High Street
Godalming
Surrey
GU21 1NL

1

PRO CORDA TRUST REPORT OF THE CHIEF EXECUTIVE OFFICER FOR THE YEAR ENDED 30 SEPTEMBER 2021

2

PRO CORDA TRUST TRUSTEES’ REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021

The Trustees are pleased to present their annual Trustees’ Report together with the consolidated financial statements of the Trust and its subsidiary (together the “Group”) for the year ended 30 September 2021 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and the Statement of Recommended Practice (“SORP”) applicable to charities preparing their accounts in accordance with the FRS 102 “the Financial Reporting Standard applicable in the UK and Republic of Ireland.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Status and administration

Pro Corda Trust is a charitable company limited by guarantee, incorporated on 26 May 2006 and registered as a charity on 26 September 2006. The Charity was established under a Memorandum of Association which established the objectives and powers of the charitable company and is governed by its Articles of Association. On 29 September 2006 the assets and liabilities of the original charity (Charity Number 313772) were transferred into Pro Corda Trust. In the event of the winding up of the Trust, each member’s liability is limited to £10.

The Trustees, who are also the directors for the purposes of company law, have all served in office throughout the year and to the date of this report, except where indicated on the Legal and Administrative page, which included as part of this report.

Investment powers, policy and performance

The Trustees’ investment powers are governed by the constitution. Pro Corda Trust currently maintains its liquid resources in banks with stable reputations.

Method adopted for the recruitment and appointment of new Trustees

When a vacancy arises, existing Trustees, the Chief Executive Officer, Course Directors and other interested parties are invited to put forward the names of suitable candidates. The Trustees will also approach suitable recruitment agencies if felt appropriate.

Candidates are invited to submit a CV and to indicate how they might assist in the furtherance of the principal objectives of the Trust. They are subsequently invited to a Trustees’ meeting. Following the meeting, those candidates still interested are discussed by the existing Trustees and a choice is made if there is more than one candidate for a particular vacancy.

Policies and procedures adopted for the induction and training of new Trustees

The Group has only limited resources and does not offer a formal induction programme and training for new Trustees who are generally expected to already have the skills necessary to perform their duties. Comprehensive information on Pro Corda’s background, current activities, operational guidelines and development plan are provided for new Trustees upon their appointment.

The Group is prepared to consider sponsoring any Trustee who wishes to undertake external training geared to improving his or her contribution in the governance of the Group.

Organisational structure

The Trustees aim to have amongst their number a diversity of skills and professions to enable them to fulfil their obligations. Trustees add value by assuming responsibilities commensurate with their experience. They delegate the day-to-day running of the Trust and Pro Corda Ventures Limited to the Chief Executive Officer, Andrew Quartermain, who provides detailed and timely feedback on progress against their expectations.

The key management personnel of the Group comprise the Trustees and the Chief Executive Officer who is appointed by the Trustees to manage the day to day activities of the Group.

The pay of senior staff is reviewed annually by the Trustees.

3

PRO CORDA TRUST TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

Relationship between the Trust and its subsidiary

Pro Corda Ventures Limited exists to provide a financial contribution to the Trust in the form of trading income from lettings, including wedding receptions and outside courses.

During the year it made an operating profit of £3,683 (2020: £1,240). Please see note 4 to these accounts for details.

Grant making policy

This year, the Trust awarded £26,582 (2020: £11,311) of scholarships and bursaries. The Trustees’ policy is to make these awards on the basis of musical ability, financial need and subject to the restrictions imposed by the original donor of the funds.

Course
Autumn 1
Primary
Junior
Intermediate
Senior
Combined
Pro Corda North
Cello / Viola
Piano Plus
Violin Plus
YSE		 Total Funding
2021
2020
£
£
405
-
2,943
967
8,827
2,717
1,491
405
4,724
2,061
-
4,207
6,217
-
225
554
450
-
1,156
400
145
-
26,582
11,311		 Number of Students
2021
2020
1
-
4
5
12
9
3
1
8
5
-
10
13
1
1
2
4
2
1
-
49
33		 Number of Students
2021
2020
1
-
4
5
12
9
3
1
8
5
-
10
13
1
1
2
4
2
1
-
49
33
33

OBJECTIVES, ACTIVITIES AND PERFORMANCE

Pro Corda Trust was founded in 1969 and exists to provide for and conduct the education of young persons and others in the whole art, philosophy and theory of music, particularly chamber music.

To fulfil the purpose set out above, for which the Trust was established, its long-term strategy is to provide a continuous and progressive programme of education through the medium of chamber music. The more detailed aims and objectives of the Trust are therefore to provide:

All of the above are provided either at the Trust’s administrative base at Leiston Abbey, Suffolk, online, or at locations across the country. All courses employ leading international artists and musicians at the forefront of their fields.

The Trusts’ work employs a holistic approach and is based on the core principles of ensemble training the person and his/her social interaction, as well as the musician. Its central mission is to unleash the wider social benefits of chamber music in terms of participation, access and learning. The Trust also has a passionate belief in equality of access and opportunity in the arts. Its aim is to assist all young people to access, experience, and participate in the highest quality professional performances and music-making opportunities.

In setting aims and objectives of the Trust and planning its activities, the Trustees have considered the Charity Commission’s guidance on public benefit, including the guidance on public benefit and fee charging.

4

PRO CORDA TRUST TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

Please see the Report of the Chief Executive Officer for details of activities and performance during the year.

Board policy and Fundraising

The policy of the Trustees is to raise finance to make the continued running of the courses viable through:

Despite the impact of COVID-19 in 2020 and 2021, the Trustees will continue to implement the above policies, but taking into account legal restrictions as they arise and/or are relaxed. The Trustees will maintain their focus on the financial viability and growth of the Charity through careful and regular review of its cashflow and cost base, taking appropriate action where necessary.

The Trustees monitor closely all the activities of the Trust and its subsidiary.

Activities and Achievements

In the year, Pro Corda had 457 students (2020: 331) attending courses, analysed as follows:

At Leiston Abbey, Suffolk:
Adult Piano (October)
Combined Autumn Courses
Pro Corda Violin Plus (October)
Pro Corda Piano Plus (November)
Pro Cord Cello Plus Course (November)
Piano Sanctuary (November)
Combined Course (January)
Special Educational Needs (January)
Conservatoire – Viola (February)
Primary 1 (April)
Piano Sanctuary (April)
Junior 1 (May)
Piano Sanctuary (May)
YSE Preparatory (May)
Special Educational Needs (May)
Preparatory (May)
Adult Piano / Piano Sanctuary (June)
Piano Sanctuary (July)
Primary 2 (July)
Beech House (SEN)
Junior 2 (July / August)
Intermediate 2 (August)
Senior 2 (August)
Pro Corda Plus Violin (August)
Adult Piano / Piano Sanctuary (September)
At Sedburgh School, North Yorkshire:
Pro Corda North (August)
At Wells Cathedral School, Somerset:
Y.S.E
Florence Tour
Activities Unlimited weeks
Total		 2021
-
27
-
8
12
3
16
-
-
24
6
14
4
8
-
26
6
8
24
4
40
32
41
33
7
30
33
-
51
457		 2020
9
-
3
-
9
-
23
16
18
-
-
-
-
1
25
-
7
-
15
-
33
31
17
19
3
-
37
17
48
331

5

PRO CORDA TRUST TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

In addition to the above courses, Pro Corda had attendees at the following activities:

Chamber Music Festival
Total		 125
125		 367
367

FINANCIAL REVIEW AND PLANS FOR THE FUTURE

Financial Activities and Results

Unrestricted reserves stood at £2,215,053 (2020: £2,260,780) following a deficit in the year of £45,727 (2020: deficit of £121,343). Restricted reserves stood at £46,603 (2020: £39,906) following a surplus in the year of £6,697 (2020: deficit of £1,148).

Plans for the future are discussed in more detail in the Report of the Chief Executive Officer.

Reserves

Notes 18 to 21 to the financial statements show the assets and liabilities attributed to the various funds by type and also define the various funds in the Group and summarise the year’s movement on each fund. The Group’s unrestricted funds as at 30 September 2021 amounted to £2,215,053 (2020: £2,260,780). The Group has tangible fixed assets, predominantly the site at Leiston Abbey, underlying its unrestricted funds valued at £2,446,013 (2020: £2,440,959) which are integral to its ability to deliver its charitable objectives.

Despite the impact of Covid-19 and the operational challenges of 2020 and 2021, the Trustees have maintained careful management of the Group’s cash resources. It is the Trustees’ continuing objective to increase the level of unrestricted reserves over time to ensure that the Group is secure financially in the long term.

Going concern

The trustees have considered the financial position, including the net current liabilities of £184,357 (2020: £140,273), the negative free reserves of £230,960 (2020: £180,179) and have considered both the Group and the Charity to be a going concern. Thus, the Trustees have continued to adopt the going concern basis of accounting in preparing the financial statements.

Further details are disclosed in accounting policy b).

Risk management

The Trustees examine the major risks the Group faces each financial year when preparing and updating the strategic plan. The Group has adequate systems and procedures in place to control these risks to mitigate any impact that they may have on the Group in the future.

Attention is focussed on financial risks to ensure that the Group has sufficient funds to conduct its activities. Attention is also on non-financial risks such as those related to staff, the service provision and the site.

Fundraising

The Group follows the Fundraising Regulator’s Code of Fundraising Practice. All fundraising is undertaken by the Group’s staff. We have not received any complaints regarding our fundraising activities and we always take steps to ensure we treat all supporters fairly and transparently, especially if we believe they may be in a vulnerable position.

Statement of Trustees’ responsibilities

The Trustees (who are also the directors for the purposes of company law) are responsible for preparing the Trustees’ annual report and financial statements in accordance with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and the Charities SORP.

6

PRO CORDA TRUST TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

Company law requires the Trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of both the Trust and the Group and of the incoming resources and application of resources, including the income and expenditure, of the Trust for that period. In preparing the financial statements, the trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of both the Trust and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of both the Trust and the Group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

Statement as to disclosure to our auditors

In so far as the Trustees are aware at the time of approving our Trustees’ annual report:

The Trustees’ Report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

Signed by order of the Trustees

John Ette

Approved by the Trustees on 25 May 2022.

7

PRO CORDA TRUST INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PRO CORDA TRUST FOR THE YEAR ENDED 30 SEPTEMBER 2021

Opinion

We have audited the financial statements of Pro Corda Trust (the ‘Charitable Company’) and its subsidiary (the ‘Group’) for the year ended 30 September 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Trust Balance Sheets, the Consolidated Cash Flow Statement and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of both the Charitable Company and Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue.

Our responsibility and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

8

PRO CORDA TRUST INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PRO CORDA TRUST (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of both the Group and Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the Trustees

As explained more fully in the Statement of Trustees' Responsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing both the Group and Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charitable Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's 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 (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We have obtained sufficient knowledge on culture, systems, controls and operations of the charity, to ensure that our audit testing was suitably tailored to the charity.

The engagement partner ensured the audit team collectively had the required experience, knowledge and competence to undertaken the assignment as planned and to identify any material misstatements including those due to irregularities.

From the work performed, including discussions with management and our knowledge and expertise in the charity sector, we have obtained an understanding of the legal and regulatory framework the Charity operates in.

9

PRO CORDA TRUST INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PRO CORDA TRUST (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

The tailored testing, included tests of detail, proofs in total and supportive analytical procedures, provided us reasonable assurance that the financial statement are free from material misstatements. This included identification of areas of higher risk, or where there are higher levels of uncertainty regarding estimates or judgements.

It is however primarily the responsibility of the trustees to ensure that the charity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the Trustee, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and regulations made under that Act. Our audit work has been undertaken so that we might state to the Trustee those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Trustee as a body, for our audit work, for this report, or for the opinions we have formed.

Malcolm McGready (Senior Statutory Auditor) For and on behalf of Ensors Accountants LLP

Ensors Accountants LLP Chartered Accountants & Statutory Auditor Connexions 159 Princes Street Ipswich Suffolk IP1 1QJ

Dated: 26 June 2022

10

PRO CORDA TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 SEPTEMBER 2021

Notes Unrestricted
Funds		 Restricted
Funds		 Total
Funds		 Total
Funds
2021 2021 2021 2020
£ £ £ £
Income:
Donations and legacies 252,926 42,013 294,939 243,812
Income from charitable activities:
Course fees 3 280,714 - 280,714 140,397
Income from other trading activities:
Trading income 4 17,190 - 17,190 14,450
Lettings and related income 6,500 - 6,500 9,168
Concert tickets and other income 5,470 - 5,470 8,660
Investment income 5 - - - 57
────── ────── ────── ──────
Total income 562,800 42,013 604,813 416,544
Expenditure:
Costs of raising funds:
Trading expenses 4 13,507 - 13,507 13,210
Fundraising costs 19,003 - 19,003 19,413
Expenditure on charitable activities: 6
Bursaries and scholarships granted 3 - 26,582 26,582 11,311
Music and pastoral staff 137,102 8,734 145,836 116,628
Food, cooking and cleaning 70,736 - 70,736 73,489
Administration costs 7 288,456 - 288,456 235,694
Establishment costs 57,705 - 57,705 55,740
Other course costs 22,018 - 22,018 13,550
────── ────── ────── ──────
Total expenditure 608,527 35,316 643,843 539,035
────── ────── ────── ──────
Net movement in funds before transfers (45,727) 6,697 (39,030) (122,491)
Transfer between funds 19 - - - -
────── ────── ────── ──────
Net income and net movement in funds (45,727) 6,697 (39,030) (122,491)
for the year
Total Funds brought forward at 1 October 2,260,780 39,906 2,300,686 2,423,177
────── ────── ────── ───────
Total Funds carried forward at 30
September		 2,215,053 46,603 2,261,656 2,300,686
═════ ═════ ═════ ══════

All income and expenditure derive from continuing activities.

All gains and losses recognised in the year are included in the Consolidated Statement of Financial Activities.

The notes on pages 14 - 26 form part of these financial statements.

11

PRO CORDA TRUST CONSOLIDATED AND TRUST BALANCE SHEETS FOR THE YEAR ENDED 30 SEPTEMBER 2021

Group Group Trust Trust
2021 2020 2021 2020
Notes £ £ £ £
Fixed assets
Tangible assets 11 2,446,013 2,440,959 2,442,726 2,437,092
Investments 12 - - 100 100
─────── ─────── ────── ───────
2,446,013 2,440,959 2,442,826 2,437,192
Current assets
Stocks 2,715 2,037 1,330 1,330
Debtors 13 62,066 105,539 61,695 105,536
Cash 7,106 9,203 6,186 6,972
─────── ─────── ────── ───────
71,887 116,779 69,211 113,838
Creditors: Due within one year 14 (256,244) (257,052) (265,400) (261,680)
─────── ─────── ────── ───────
Net current (liabilities) / assets (184,357) (140,273) (196,189) (147,842)
─────── ─────── ────── ───────
Total assets less current liabilities 2,261,656 2,300,686 2,246,637 2,289,350
═══════ ═══════ ══════ ═══════
Funds
General 35,295 28,598 35,295 28,598
Barn Fund 11,308 11,308 11,308 11,308
─────── ─────── ────── ───────
Restricted funds 19 46,603 39,906 46,603 39,906
General 1,213,583 1,263,400 1,213,583 1,263,400
Revaluation reserve 870,512 870,512 870,512 870,512
Designated 115,939 115,532 115,939 115,532
Non-charitable trading funds 15,019 11,336 - -
─────── ─────── ────── ───────
Unrestricted funds 20 2,215,053 2,260,780 2,200,034 2,249,444
─────── ─────── ────── ───────
Total funds 2,261,656 2,300,686 2,246,637 2,289,350
═══════ ═══════ ══════ ═══════

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime within Part 15 of the Companies Act 2006.

Approved by the Board for issue on 25 May 2022.

John Ette Trustee

Company Registration No. 05829570

The notes on pages 14 - 26 form part of these financial statements.

12

PRO CORDA TRUST DETAILED INCOME AND EXPENDITURE ACCOUNT (This page does not form part of the statutory financial statements) FOR THE YEAR ENDED 30 SEPTEMBER 2021

2021 2020
Notes £ £
Cash used in operating activities 22 68,781 (44,688)
─────── ───────
Cash flows from investing activities
Interest income - 57
Purchase of tangible fixed assets (15,114) (26,650)
─────── ───────
Cash used in investing activities (15,114) (26,593)
─────── ───────
Increase / (decrease) in cash and cash equivalents 53,667 (71,281)
Cash and cash equivalents at the beginning of the year (76,956) (5,675)
─────── ───────
Total cash and cash equivalents at the end of the year (23,289) (76,956)
═══════ ═══════
Disclosed as:
Cash and Bank		 7,106 9,203
Bank Overdrafts (30,395) (86,159)
─────── ───────
Total cash and cash equivalents at the end of the year (23,289) (76,956)
═══════ ═══════

The notes on pages 14 - 26 form part of these financial statements.

13

1. Principal accounting policies

Charitable company information

Pro Corda Trust is a charitable company limited by guarantee incorporated in England and Wales. The registered office is Leiston Abbey, Theberton, Leiston, Suffolk, IP16 4TD.

a) Basis of preparation

The financial statements have been prepared in accordance with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and the Charities SORP (FRS 102).

Pro Corda Trust is a public benefit entity.

The financial statements are prepared in sterling, which is the functional currency of the Trust and of the Group. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.

b) Going concern

The Trustees have taken appropriate steps to ensure that the adverse impact of the COVID-19 pandemic on the Trust is mitigated such that the Trustees have a reasonable expectation that the Trust and Group have adequate resources to continue in operational existence for the foreseeable future despite the net current liabilities of £184,357 (2020: £140,273) for the Group and £196,189 (2020: £147,842) for the Charity.

The nature of the Trust’s activities have meant that the normal programme of activities during 2020 and the early part of 2021 have had to be substantially modified and any further changes in restrictions may continue to challenge the revised programme for 2021. However, careful cost and cash management have allowed the Trust to continue to operate, even in a reduced way, and the Trust has also been developing new online activities which are significantly less impacted by the COVID restrictions, and provide a reasonable source of alternative, sustained revenue.

The Trustees have prepared a detailed cash flow forecast to 30 September 2022 including a prudent expectation of when activities can be recommenced along with cost reductions, deferment of costs/expenses, use of available support, a realistic expectation of donations and available finance facilities. These cash flows demonstrate that the Trust and Group has adequate resources to continue in operational existence for the foreseeable future.

Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

c) Group accounts

These financial statements consolidate the results of Pro Corda Trust and its wholly-owned subsidiary, Pro Corda Ventures Limited, on a line by line basis. A separate statement of financial activities for the Trust itself is not presented because the Trust has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

d) Course fees and similar income

Course fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Course fees receivable include contributions received from restricted funds for scholarships, bursaries and other costs and are stated net of VAT.

14

1. Principal accounting policies (continued)

e) Donations and fund accounting

Donations received for the general purposes of the Trust are included as unrestricted funds. The Trustees may, at their discretion, designate funds to be used for a particular purpose. Such designation of unrestricted funds may also be reversed at the discretion of the Trustees. Donations for activities restricted by the wishes of the donor are taken to ‘restricted funds’ where their wishes are legally binding on the Trustees.

Income from donations (including donated goods or services) or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

For legacies, entitlement is recognised from the earlier of the date of receipt or when sufficient notification is received by the Trust to enable it to quantify its entitlement with reasonable certainty. Income is not recognised for legacies which remain subject to a life interest.

f) Resources expended

Resources expended are accounted for on an accruals basis. Certain expenditure is apportioned to cost categories based on the estimated amount attributable to that activity in the year. These estimates are based on staff time. The irrecoverable element of VAT is included with the item of expense to which it relates.

g) Operating leases

Rentals payable are charged on a time basis over the lease term.

h) Pension schemes

The Trust offers a defined contribution pension scheme for its employees. The contributions are charged to expenses as they fall due for payment. There are currently 11 employees (2020: 11) who are members of this scheme. Pension scheme costs and associated liabilities are split between restricted and unrestricted funds based on the proportion of employee time spent on restricted and unrestricted activities.

i) Tangible fixed assets

Capitalisation and replacement

The land, together with the original buildings (which are all Grade II listed properties), were acquired by the Trust in 1986. The Trust is responsible for keeping the original buildings in fit and useful condition, and these costs are written off as incurred. Building improvements and extensions costing more than £5,000 are capitalised and carried in the balance sheet at cost. On transition to FRS 102 the Group adopted the provision to treat the property at deemed cost and dispense with valuations going forwards.

Depreciation

Land is not depreciated, depreciation of other assets is provided at rates calculated to write off the excess of cost over estimated residual amount evenly over the estimated useful economic lives of each class of asset, subject to annual review.

These rates are currently as follows:

Property improvements: 50 years (straight line)
Musical instruments: 10 years (straight line)
Furniture and equipment: 5-10 years (reducing balance)
Computers: 3 years (straight line)

The residual value of certain musical instruments is considered such that any depreciation charge would be immaterial. Accordingly, none is charged.

15

1. Principal accounting policies (continued)

i) Tangible fixed assets (continued)

The Trustees consider the residual value of listed buildings is materially consistent with the residual value of the asset. Accordingly no depreciation has been charged on listed buildings.

j) Impairment of fixed assets

At each reporting period end date, the Group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimate of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss I recognised immediately in the SoFA, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the SoFA, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

k) Stock

Stock is carried at the lower of cost and net realisable value.

l) Grants and bursaries payable

Grants and bursaries from restricted funds are included as expenditure in the period for which the award is given.

m) Financial instruments

The Trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2. Judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historic experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

16

3. Course fees

The course fee income comprised:

The course fee income comprised:
Gross fees
Less: bursaries, scholarships, grants and allowances		 2021
£
280,714
(26,582)
254,132		 2020
£
140,397
(11,311)
129,086

4. Income from subsidiary’s trading activities

The Trust owns the whole of the ordinary share capital, consisting of 100 ordinary shares of £1 each, of Pro Corda Ventures Limited, a company incorporated in the UK, which undertakes activities that fall outside the scope of the Trust’s objectives (Company No. 02868983).

The registered office of Pro Corda Ventures Limited is Leiston Abbey, Theberton, Leiston, Suffolk, IP16 4TB.

Pro Corda Ventures Limited’s trading results for the year as extracted from the financial statements are summarised below, together with the Trust’s own results for the year to distinguish them from the group results in the Consolidated Statement of Financial Activities.

Turnover and fee income
Cost of sales: subsidiary
Gross profit: subsidiary
Administration: subsidiary
Other income
Operating profit / (loss)
Bank interest receivable
Gross incoming resources
Cost of charitable activities
Cost of generating funds
Retained surplus / (deficit)		 Subsidiary
2021
2020
17,190
14,450
(149)
(1,819)
17,041
12,631
(13,358)
(11,391)
-
-
3,683
1,240
-
-
3,683
1,240		 Trust
2021
2020
280,714
140,397
306,909
266,015
-
57
587,623
406,469
(611,333)
(506,412)
(19,003)
(19,413)
(42,713)
(119,356)		 Trust
2021
2020
280,714
140,397
306,909
266,015
-
57
587,623
406,469
(611,333)
(506,412)
(19,003)
(19,413)
(42,713)
(119,356)
406,469
(506,412)
(19,413)
(119,356)

Details of the subsidiary’s balance sheet is given in note 12.

5. Investment income

Interest on cash deposits 2021
2020
£
£
-
57

17

6. Analysis of expenditure on charitable activities

Bursaries and scholarships granted
Music and pastoral staff
Food, cooking and cleaning
Governance & support costs
Establishment costs
Other course costs		 Music
Courses
£
26,582
145,836
70,736
278,976
57,705
22,018
601,853		 Barn
Costs
Depreciation
and loss on
disposal
£
£
-
-
-
-
-
-
-
9,480
-
-
-
-
-
9,480		 Total
£
26,582
145,836
70,736
288,456
57,705
22,018
611,333

7. Analysis of governance and support costs

Staff costs
Travel and subsistence
Office costs
Audit and accountancy costs
Other legal and professional costs
Advertising
Insurance
Depreciation and loss on disposal
Other costs		 General
support
Governance
Function
£
£
96,140
-
34,604
-
20,360
-
-
8,845
19,388
-
31,272
-
18,420
-
9,480
-
49,947
-
279,611
8,845		 Total
£
96,140
34,604
20,360
8,845
19,388
31,272
18,420
9,480
49,947
288,456

8. Expenditure for the year is stated after charging:

2021 2020
£ £
Fees payable to the group’s auditor for:
The audit of the consolidated and subsidiary company
financial statements		 8,845 5,362
Accountancy services 12,547 11,952

The cost of inventories recognised as an expense during the period was £15,500 (2020: £15,506).

18

9. Analysis of staff costs and trustee remuneration and expenses

Wages and salaries
Employers National Insurance
Employers pension contributions		 2021
£
215,818
15,926
3,826
235,570		 2020
£
195,575
10,650
3,906
210,131

The average number of employees in the year, on a head count basis was 10 (2020: 11).

No employee earned more than £60,000 in the year (2020: nil).

The key management personnel of the parent charity, the Trust, comprise the Trustees and the Chief Executive Officer. The total employee benefits of the key management personnel of the Trust were £50,180 (2020: £50,181).

The key management personnel of the Group comprise those of the Trust and those of its wholly owned subsidiary Pro Corda Ventures Limited. The key management personnel of Pro Corda Ventures Limited are the directors and the Chief Executive Officer, whose employee benefits total £nil (2020: £nil). The total employee benefits of key management personnel for the Group was therefore £50,180 (2020: £50,181).

10. Related party transactions

Neither the Trustees, nor any persons connected with them, received any remuneration or other benefits from the Trust or any connected organisation other than the reimbursement of expenses.

Reimbursement of travel expenses to Trustees totalled £nil (2020: £nil). No Trustee received any subsidy for their offspring to attend.

During the year, an immediate family member of D Ballance (Trustee) was hired by the charity to perform teaching and pastoral duties on three core courses. He was remunerated a total of £1,909 (2020: £2,394), none of which was outstanding at the year end.

19

11. Tangible fixed assets

Subsidiary
Freehold Musical Furniture & furniture & Group
buildings instruments equipment Trust total equipment total
£ £ £ £ £ £
Cost or Valuation
1 October 2020 2,467,254 65,737 40,727 2,573,718 69,651 2,643,369
Additions 12,480 - 2,634 15,114 - 15,114
─────── ─────── ─────── ─────── ─────── ───────
30 September 2021 2,479,734 65,737 43,361 2,588,832 69,651 2,658,483
══════ ══════ ══════ ══════ ══════ ══════
Depreciation
1 October 2020 72,380 29,343 34,903 136,626 65,784 202,410
Charge for the year 7,595 192 1,693 9,480 580 10,060
─────── ─────── ─────── ─────── ─────── ───────
30 September 2021 79,975 29,535 36,596 146,106 66,364 212,470
══════ ══════ ══════ ══════ ══════ ══════
Net book values
30 September 2021 2,399,759 36,202 6,765 2,442,726 3,287 2,446,013
══════ ══════ ══════ ══════ ══════ ══════
30 September 2020 2,394,874 36,394 5,824 2,437,092 3,867 2,440,959
══════ ══════ ══════ ══════ ══════ ══════

Within freehold buildings there is property with a deemed cost of £2,100,000 which has a historical cost of £1,229,488.

12. Investments

Group Trust
2021 2020 2021 2020
£ £ £ £
Fixed asset investments
Investment in subsidiary - - 100 100

20

12. Investments (continued)

12. Investments (continued)
The assets and liabilities of the subsidiary were:
Tangible fixed assets
Current assets
Creditors: amounts falling due within one year
Represented by:
Share capital
Profit and loss account		 2021
£
3,287
26,838
30,125
(15,106)

15,019
100
14,919
15,019		 2020
£
3,867
17,657
21,524
(10.188)
11,336
100
11,236
11,336

Details of the subsidiary’s profit and loss account are given in note 4.

13. Debtors

Trade debtors
Prepayments
Corporation Tax Recoverable		 Group
2021
2020
£
£
60,875
102,453
1,188
3,083
3
3
62,066
105,539		 Trust
2021
2020
£
£
60,507
102,453
1,188
3,083
-
-
61,695
105,536		 Trust
2021
2020
£
£
60,507
102,453
1,188
3,083
-
-
61,695
105,536
105,536

14. Creditors: Due within one year

Bank overdrafts
Trade creditors
Advance course fees
Taxation and social security
Amounts owed to subsidiary
Other creditors and accruals		 Group
2021
2020
£
£
30,395
86,159
51,666
37,120
75,477
63,529
6,148
3,539
-
-
92,558
66,705
256,244
257,052		 Trust
2021
2020
£
£
30,395
86,159
47,806
36,020
75,477
63,529
6,148
3,539
24,163
14,716
81,411
57,717
265,400
261,680		 Trust
2021
2020
£
£
30,395
86,159
47,806
36,020
75,477
63,529
6,148
3,539
24,163
14,716
81,411
57,717
265,400
261,680
261,680

15. Deferred income

Advance course fees Balance at
1 Oct 2020
£
63,529		 Released to
income
£
(63,529)		 Deposits
received
Balance at 30
Sept 2021
£
£
75,477
75,477

21

16. Operating lease commitments

At the reporting end date, the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

Due within one year
Due between 1 and 5 years
Due after 5 years
Total		 Group
2021
2020
£
£
5,825
6,607
14,724
17,275
1,296
7,000
21,845
30,882		 Trust
2021
2020
£
£
5,825
6,607
14,724
17,275
1,296
7,000
21,845
30,882		 Trust
2021
2020
£
£
5,825
6,607
14,724
17,275
1,296
7,000
21,845
30,882
30,882

The cost of operating leases recognised as an expense during the period was £5,394 (2020 £8,600).

17. Financial instruments

Group
2021
2020
£
£
Carrying amount of financial assets
Debt instruments measured at
amortised cost
60,875
102,453
Equity instruments measured at
cost less impairment
-
-
Carryingamountof financial liabilities
Measured at amortised cost
144,224
103,825		 Trust
2021
2020
£
£
60,507
102,453
100
100
153,380
108,453

Measured at amortised cost

22

18. Analysis of group funds at 30 September 2021

Fixed
assets
£
Restricted funds:
General
-
Barn LEADER Project
-
-
Unrestricted funds:
General fund
1,572,214
Revaluation fund
870,512
Designated fund (Abbey House Fund)
-
Non-charitable trading funds
3,287
Group
2,446,013
Analysis of group funds at 30 September 2020
Fixed
assets
£
Restricted funds:
General
-
Barn LEADER Project
-
-
Unrestricted funds:
General fund
1,566,580
Revaluation fund
870,512
Designated fund (Abbey House Fund)
-
Non-charitable trading funds
3,867
Group
2,440,959		 Net current
assets /
(liabilities)
£
35,295
11,308
46,603
(358,631)
-
115,939
11,732
(184,357)
Net current
assets /
(liabilities)
£
28,598
11,308
39,906
(303,180)
-
115,532
7,469
(140,273)		 Fund
balances
£
35,295
11,308
46,603
1,213,583
870,512
115,939
15,019
2,261,656
Fund
balances
£
28,598
11,308
39,906
1,263,400
870,512
115,532
11,336
2,300,686

The Restricted General Funds represents fund available to the Trustees at their discretion for the provision of bursaries and similar financial support.

The LEADER Project represents funds made available specifically for the design and installation of a heating system for the Barn.

The Freehold purchase, including legal costs, of Leiston Abbey by Pro Corda Trust from the Diocese of Bury St Edmunds, was entirely funded through a pre-arranged pledge. The transaction was completed in September 2020.

The Abbey House Fund is a designated fund created to provide for the restoration and improvement of the Abbey House which is used for accommodation and teaching by the Group.

23

19. Restricted funds: movement in the year

Bursary
Piano
Chamber
Competition
Barn LEADER
Project
NYMO
Bursary
Piano
Chamber
Competition
Barn LEADER
Project
NYMO
SEN
Freehold
Purchase		 Balance at
1 Oct 2020
£
9,869
2,349
11,725
11,308
4,655
39,906
Balance at
1 Oct 2019
£
3,509
2,349
19,233
11,308
4,655
-
-
41,054		 Income
£
32,013
-
10,000
-
-
42,013
Income
£
17,671
-
-
-
-
1,500
25,000
44,171		 Expended
£
26,582
-
8,734
-
-
35,316
Expended
£
11,311
-
9,015
-
-
2,002
-
22,328		 Transfers
£
-
-
-
-
-
-
Transfers
£
-
-
1,507
-
-
502
(25,000)
(22,991)		 Balance at 30
Sept 2021
£
15,300
2,349
12,991
11,308
4,655
46,603
Balance at 30
Sept 2020
£
9,869
2,349
11,725
11,308
4,655
-
-
39,906

24

20. Unrestricted funds: movement in the year

General reserve
Revaluation
reserve
Designated fund
(Abbey House
Fund)
Trust
Non-charitable
trading funds
General reserve
Revaluation
reserve
Designated fund
(Abbey
House Fund)
Trust
Non-charitable
trading funds		 Balance at 1
Oct 2020
£
1,263,400
870,512
115,532
2,249,444
11,336
2,260,780
Balance at 1
Oct 2019
£
1,395,110
870,512
102,030
2,367,652
14,471
2,382,123		 Income
£
545,203
-
407
545,610
17,190
562,800
Income
£
340,934
-
16,989
357,923
14,450
372,373		 Expended
£
595,020
-
-
595,020
13,507
608,527
Expended
£
500,010
-
3,487
503,497
13,210
516,707		 Transfer
£
-
-
-
-
-
-
Transfer
£
22,991
-
-
22,991
-
22,991		 Consoli-
dation
£
-
-
-
-
-
-
Consoli-
dation
£
4,375
-
-
4,375
(4,375)
-		 Balance at
30 Sept
2021
£
1,213,583
870,512
115,939
2,200,034
15,019
2,215,053
Balance at
30 Sept
2020
£
1,263,400
870,512
115,532
2,249,444
11,336
2,260,780

25

21. Restricted fund expenditure

Bursary
Chamber
competition
Group and Trust		 Bursaries
granted
Music and
pastoral
staff
£
£
26,582
-
-
8,734		 Administra-
tion
£
-
-		 Establish-
ment
£
-
-		 Fundraising
costs
Total
£
£
-
26,582
-
8,734
26,582
8,734		 - - -
35,316

22. Reconciliation of group net incoming resources to net cash (outflow) / inflow from group operations

Net income
Depreciation charges added back
Deduct interest income
Decrease in stocks
Decrease in debtors
Increase in creditors
Net cash generated / (used in) by
 £
10,060
-
(678)
43,473
54,956		 2021
£
(39,030)
107,811		 £
9,176
(57)
56
29,061
39,567		 2020
£
(122,491)
77,803
68,781 (44,688)

Net cash generated / (used in) by operating activities

26

23. Consolidated statement of financial activities (including income and expenditure account) for the year ended 30 September 2020

Unrestricted Restricted Total
Funds Funds Funds
2020 2020 2020
£ £ £
Income:
Donations and legacies 199,641 44,171 243,812
Income from charitable activities:
Course fees 140,397 - 140,397
Income from other trading activities:
Trading income 14,450 - 14,450
Lettings and related income 9,168 - 9,168
Concert tickets and other income 8,660 - 8,660
Investment income 57 - 57
────── ────── ──────
Total income 372,373 44,171 416,544
Expenditure:
Costs of raising funds:
Trading expenses 13,210 - 13,210
Fundraising costs 19,210 203 19,413
Expenditure on charitable activities:
Bursaries and scholarships granted - 11,311 11,311
Music and pastoral staff 111,221 5,407 116,628
Food, cooking and cleaning 73,489 - 73,489
Administration costs 230,287 5,407 235,694
Establishment costs 55,740 - 55,740
Other course costs 13,550 - 13,550
────── ────── ──────
Total expenditure 516,707 22,328 539,035
────── ────── ──────
Net movement in funds before transfers (144,334) 21,843 (122,491)
Transfer between funds 22,991 (22,991) -
────── ────── ──────
Net income and net movement in funds for the
year		 (121,343) (1,148) (122,491)
Total Funds brought forward at 1 October 2,382,123 41,054 2,423,177
────── ────── ──────
Total Funds carried forward at 30 September 2,260,780 39,906 2,300,686
══════ ═════ ══════

27