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2021-03-31-accounts

The UK Association for Music Education – Music Mark

UNAUDITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

for the year ended

31 March 2021

Company Registration No 6134823

Charity Registration No 1118542

The UK Association for Music Education – Music Mark REFERENCE AND ADMINISTRATIVE INFORMATION

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The UK Association for Music Education – Music
Company Name Mark
Registered Company Number 6134823
Registered Charity Number 1118542
Registered Office Southgate Chambers
37-39 Southgate Street
Winchester
SO23 9EH
Board of Trustees James Dickinson (Chair)
Yogesh Dattani
Martin Fautley
Jan Ford – Elected November 2020
Maureen Hanke – Retired November 2020
David Little (Treasurer)
Peter Smalley – Re-elected November 2020
Kerry Watson - Resigned April 2021
Peter Bolton
Jennifer Gilbert
Patron Charles Hazelwood
Company Secretary and Chief Executive Bridget Whyte
Independent Examiner James Cross
For and on behalf of
Moore Kingston Smith LLP
Devonshire House
60 Goswell Road
London EC1M 7AD
Bankers CAF Bank Limited
25 Kings Hill Avenue, Kings Hill,
West Malling,
Kent ME19 4JQ
Solicitors Bates Wells & Braithwaite LLP
2-6 Cannon Street,
London EC4M 6YH
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The UK Association for Music Education – Music Mark

TRUSTEES’ REPORT For the year ended 31 March 2021

TRUSTEES’ ANNUAL REPORT

The Trustees (who are also directors for the purposes of company law) present their report and the financial statements of the UK Association for Music Education – Music Mark (the “Charity” or “Music Mark”) for the year ended 31 March 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities”, to be compliant with Financial Reporting Standard (FRS) 102.

Reference and administrative information set out on page 2 forms part of this report. The financial statements have been prepared in accordance with the accounting policies set out on pages 15 and 16 and comply with the applicable law, the Memorandum and Articles of Association and the requirements of the Charities SORP (FRS 102).

OBJECTIVES AND ACTIVITIES

Charitable Objects

As stated in its Memorandum of Articles and Association, Music Mark’s charitable objects are to advance the education of the public in the art of music.

Music Mark is a membership organisation for local authority and independent Music Services, for other music education organisations, their teaching and support teams, their partners and their schools. We advocate on behalf of those members meaning that we ‘speak and act in support of music as a subject, and we promote best practice’. We strive to ensure that all stakeholders understand the value and life-changing potential of music for all children and young people.

Music Mark is also a subject association. Subject associations speak for their subject communities; they are able to undertake research into their members’ concerns and to reflect these back to policy makers. A subject association is never only one lone voice but instead is the collective voice of their subject community; working to ensure the highest quality of teaching.

Principal Activities

Music Mark’s vision is:

Excellent musical learning in and out of school for all children and young people in the UK, which inspires and enriches their lives.

It meets its charitable objects in pursuit of its vision through its mission:

Supporting, connecting, and influencing in pursuit of a high quality, diverse, inclusive music education for all children and young people.

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The UK Association for Music Education – Music Mark

TRUSTEES’ REPORT

For the year ended 31 March 2021

Underpinning this mission are eight strategic aims which outline the focus of Music Mark’s work:

Membership A simplified structure and increased engagement - providing opportunities for professional
debate, sharing good practice, innovation and CPD through local, regional and national events
Influencing &
Informing Policy &
Practice		 The voice for Music Education at a National level – advising and influencing governments and
NGOs across the UK and representing the sector on the international stage
Professional An ongoing programme that provides training, resources and events for all those involved in
Development children and young people’s music education in the UK
Schools A stronger (direct and/or indirect) relationship with schools through membership and as a Music
Subject Association
UK A strong network across the UK, through membership and partnership with individuals and
organisations, supporting quality of both provision and outcomes
Music Education in
England		 Maintain a close relationship with the DfE, consider other government department links, and
gain and retain formal status as a Sector Support Organisation (SSO) from Arts Council
England (ACE)
Governance Clarity of accountability, management, purpose and reporting of the work of Music Mark,
including as a limited company and charity
Financial Resilience Diversified income streams including capitalising on Music Mark’s charitable status

Public Benefit

The Trustees have referred to the guidance offered by the Charity Commission in reviewing aims and objectives and in planning activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives and they ensure that these activities are carried out for the public benefit by delivering services that are valued by members and enable those with responsibility in the sector to develop and adopt best practice.

ACHIEVEMENTS AND PERFORMANCE

Despite the challenges presented by the COVID-19 Pandemic, 2020/21 has been a further year of growth for Music Mark.

Membership has increased and there has been significant increase in engagement in the charity’s activities as it took much of its offer online.

The 2020 Annual Conference moved online and yet continued the steady increase in delegates observed over the past few years. It had a focus on The Music in Music Education, and, with support from some of the Corporate Partners, the event provided a day of valuable live training and discussion as well as an online offer of recorded sessions and a virtual exhibition, which extended the length of the conference to over 6 weeks. Feedback from this re-imagined conference was very positive and although there were many who were hoping for a face-to-face conference in 2021, there was a clear indication that elements of the online event were welcome and would be valuable to consider ongoing.

The partnership with Arts Council England (ACE) continued in 2020/21, with enhanced grant funding which enabled Music Mark to develop and deliver both resources and further training programmes and provide increased support for its (English) Membership during a very challenging year.

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The UK Association for Music Education – Music Mark

TRUSTEES’ REPORT

For the year ended 31 March 2021

In September 2020 the Communication and Marketing Manager, Fi Simpson, went on maternity leave and the CEO promoted the Finance and Administration Officer to Communications and Marketing Officer to cover some of the role with a consultant, Carmel Cardona, brought in to provide strategic support. Rachel Shirley was engaged on a short term freelance contract to cover some administrative tasks. In addition a consultant, Gary Griffiths, was contracted to provide vital COVID-19 support to the membership, funded by the ACE grant in 2020/21.

The financial year closed with confirmation of significant ongoing funding from April 2021 to October 2022 from ACE for Music Mark to continue to support Music Education Hubs with managing the challenges presented by the COVID19 Pandemic. This ongoing funding has enabled the charity to continue to engage some key consultants to provide that support as well as to increase the staff team with Rachel Shirley being appointed on a 1-year fixed term contract as 0.8fte Finance and Administration Officer from April 2021.

Going concern

The financial statements have been prepared under the going concern basis. The Board agreed a budget for 2021/22 which reflects the possibility of some reductions in membership fees and advertising as the COVID-19 Pandemic continues to have an effect on the sector, but continues to develop the Charities role as a key part of the support for the sector, especially following the confirmation in March 2021 of funding from ACE which will includes financial support for the charities core costs.

FINANCIAL REVIEW

Music Mark recorded an overall surplus of income over expenditure for the year of £342,879. Accounting rules under the Statement of Recommended Practice (SORP) require that grant income be recognised in the accounts when certain criteria are met; being entitled, probable and measurable. This means that in these accounts the grant from ACE for the period March 2021 to October 2022 has to be recognised in full, even though the majority of the expenditure will be incurred over the next two years (2021/22 and 2022/23).

Restricted income comprised of grants received and yet to be received from ACE, for funding towards three strands of a Hub Support programme, underpinning hubs, hub workforce development and the innovation pot.

Unrestricted income decreased this year compared to last by £64,268 to £260,739. This decrease was partly due to lower advertising income, replacing the ticketed Spring Summit to an online webinar-based event due to COVID-19 and an online conference meaning lower ticket prices.

Expenditure of £74,025 against restricted funds, represented ACE grants money used towards the Hub Support Programme, together with the costs of £2,975 for Underpinning Hubs.

Expenditure from unrestricted funding decreased by £74,596 to £221,213. This decrease was primarily due to the annual conference transferring purely to online attendance which meant that venue hire and associated costs were greatly reduced.

Following the surplus recorded during the year, unrestricted reserves increased from £141,484 to £181,010 Restricted funds carried forward of £312,967 represent unspent funds remaining from the North West members’ conferences 20172019 of £9,364, South Yorkshire Conference £250 with the remainder being ACE grants for future planned support projects.

Cash balances increased by £63,768 to £306,395, significantly helped by a number of Music Services applying for 2021/22 memberships in advance of the new year. In addition, a reduction in spending and good credit control processes.

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The UK Association for Music Education – Music Mark

TRUSTEES’ REPORT

For the year ended 31 March 2021

Reserves Policy

Through careful management of income and expenditure, Music Mark has built up reserves over past years for general contingency requirements.

The Trustees have reviewed the level of free reserves (those not tied up in fixed assets, designated for a specific purpose or restricted) and consider that a level free reserves equivalent to six months’ management and administration costs to be sufficient to ensure that the Charity could continue to meet the needs of beneficiaries and stakeholders in the event of unexpected, substantial adverse financial circumstances.

Unrestricted reserves standing at £181,010 represent a little more than 11 months of 2021/22 budgeted management and administration expenditure, excluding costs of delivering conferences, training and other events. This level is therefore in line with the policy.

Investment Policy

The aim of the Investment Policy is to protect the capital value of funds held and, ideally, allow them to be inflation proofed over the long-term. Given the value of funds held and the need to meet short and medium-term requirements, in an environment of low risk-free investment returns, funds are held in an interest-bearing bank deposit account. All income from investments is used for furthering the charitable objectives.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution of the Charity and the nature of the Governing Document

The Charity is a company limited by guarantee (registered number 6134823) and is governed by its Memorandum and Articles of Association (adopted 18 May 2007, revised 7 February 2013). The Charity is registered with the Charity Commission (registered number 1118542) and does not have share capital, cannot pay dividends and must utilise all its funds to further its stated charitable objectives.

Recruitment and Appointment of Trustees

The appointment of the Board of Trustees is governed by the Charity’s constitution. Elected trustees are drawn by nomination from the Membership, with a voting process for eligible Members where there are more candidates than available posts. Elected trustees generally serve for a term of three years ending on the third AGM following election. The Board also has the option to co-opt a further four trustees by skill set to complement the elected board. Co-opted trustees serve for terms of one year which can be renewed at the discretion of the board.

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The UK Association for Music Education – Music Mark

TRUSTEES’ REPORT

For the year ended 31 March 2021

Those who served during the year were:

James Dickinson (Chair) Co-opted member Peter Bolton Elected Member Yogesh Dattani Elected member (remaining on the Board for a 4[th] year as only two Trustees were required to step down and to ensure Board stability during the COVID-19 pandemic) Martin Fautley Co-opted member Jan Ford Elected Member appointed November 2021 Jennifer Gilbert Elected Member Maureen Hanke Elected Member – stood down following three years of service at the AGM November 2021 David Little (Treasurer) Co-opted member Peter Smalley Elected member – stood for re-election following three years of service and reappointed at the AGM in November 2021 Kerry Watson Stood down in April 2021

Induction and Training of New Trustees

All new Trustees attend an induction Trustee Board Meeting where their roles are fully explained. They receive regular information about the work of the charity, where appropriate, signposted to relevant trustee training and, in the view of the Trustees, have enough knowledge of their specific field to understand the nature of the Charity and fully comply with the Charity’s current views of its progression. Trustees may claim for reasonable expenses (as determined by an agreed policy) incurred in undertaking the Charity’s business, but they receive no remuneration or other financial benefit.

Organisational Structure and Management

According to the Charity’s constitution, the Board of Trustees must hold at least three meetings per year to take decisions about the strategic direction and running of the Charity, as guided by the Chief Executive.

Strategic and operational delivery is undertaken by the Chief Executive. Additional, specialist support is brought in by way of a number of freelance contractors and suppliers (including conference management, IT and finance).

Equality of Opportunity

Music Mark is committed to a policy of equal opportunities for all employees and to ensuring within the framework of the law that its workplaces are free from unlawful or unfair discrimination. The principles of equality are embedded within the Music Mark ethos and are consistently adhered to in all activity including recruitment (Board and staff), planning and delivering events and services, marketing and communications and within programme development.

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The UK Association for Music Education – Music Mark

TRUSTEES’ REPORT

For the year ended 31 March 2021

Risk management

The Trustees and the Chief Executive pay due care and attention to risk management and it is a standing agenda item at all Board Meetings. The Chief Executive, on behalf of the Trustees, maintains an ongoing ‘risk matrix’ covering all areas of reputation, operation, delivery and finances.

The Chief Executive is tasked to alert Trustees to new or increased risks identified in any category so that mitigating actions can be agreed and implemented as appropriate. Risk assessment of all new activities is fully undertaken by way of Trustee discussions and, where necessary, expert advice is sought and followed.

The principal risks faced by the Charity, and the actions to mitigate these risks, are considered to be:

Risk Mitigation
Degree of dependence on Music Service and
lead organisation of Music Education Hub
(MEH) membership income.		 Continued review and development of Membership benefits alongside
messaging that membership is available to all those music education
working in the sector across the UK and the diversifying of income
streams to include grants, partnerships and sponsorship.
Understanding by the staff team as to what constitutes success for a
Membership dissatisfaction with support
services provided.		 membership organisation. Clarity of commitment to purpose, analysis of
feedback and to action. Regular regional and peer-group consultation
and networking events for Members to ensure understanding of the
value of membership. An annual membership survey.
Loss of key staff. Review of remuneration packages, roles and responsibilities and staff
development opportunities.
Elected trustee body lacking in all relevant Co-option of Trustees with desired knowledge areas or skill-sets to
skills. supplement those of elected Trustees.
Regular ongoing consultation with the Membership, and work with
COVID-19 Impact – income loss (i.e.
Membership fees and/or event cancellation)		 partners such as ACE, to ensure that services provided meet their needs
following a year of impact from the COVID-19 Pandemic and that
events are relevant, affordable and accessible through the use of online
platforms.

Related Parties

None of the current Trustees have any beneficial interest in any contract with the Charity. Eight of the Trustees who served during the year were employed during the year by Music Services or Music Education Organisations that paid annual Membership fees. Two of the Trustees are individual Members of Music Mark.

In carrying out its objectives the Charity works in partnership with other organisations. None of these organisations is a related party within the terms of the SORP.

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The UK Association for Music Education – Music Mark

TRUSTEES’ REPORT

For the year ended 31 March 2021

Funds held on behalf of others

In the ordinary course of business, Music Mark holds and administers funds, from time to time, on behalf groups of Music Education Organisation Members. Funds are held within Music Mark’s bank accounts but are accounted for separately (see Note 17). Disbursement of these funds is made on written agreement from the fund holder(s).

PLANS FOR THE FUTURE

In 2021/22 Music Mark will continue to position itself as the provider of support for the organisations and individuals who work as part of Music Education Hubs in England, continue to expand its support of Music Services in Wales, Northern Ireland and the Crown Dependencies of Guernsey, Jersey and the Isle of Man, as well as looking to further strengthen its links and partnerships with Music Services and other music education providers in Scotland.

Having established a valued programme of online training and events for its membership and the wider sector this will continue, adapting to the needs of, and based on feedback from, the membership. The Music Mark Annual Conference will run as a hybrid event providing access to some elements online as well as providing a face-to-face event in Brighton (unless the current COVID-19 Roadmap to Reopening is restricted due to significant increases in cases or concerns regarding new variants). Members’ meetings will continue to offer the opportunity to network at regional and national levels.

Objectives for 2021/22

During next year the key objective for Music Mark will be to support its membership to manage the ongoing the impact of the COVID-19 Pandemic, including advocating at a national, regional and local level for the importance of, and ongoing support for, Music Education.

The Board of Trustees and the Chief Executive have agreed upon the following specific activities for the forthcoming year in line with the organisation’s charitable objectives:

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The UK Association for Music Education – Music Mark

TRUSTEES’ REPORT For the year ended 31 March 2021

 Be a key voice in the development of the English ‘Refreshed’ National Plan for Music Education as it is developed and published and champion the need for realistic funding for Music Education Hubs  Review and strengthen the governance of the charity  Identify further ways to become more financially resilient through stronger partnerships such as with ACE

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors of The UK Association for Music Education – Music Mark for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company, including the income and expenditure of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

 state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

 prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

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

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small entities.

INDEPENDENT EXAMMINATION

For the year ended 31 March 2021 the Charity qualifies for an independent examination of its financial statements.

Approval

Approved by the Trustees on 7th October 2021 and signed on their behalf by:

James Dickinson

Chair of Trustees

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REPORT OF THE INDEPENDENT EXAMINER TO THE MEMBERS OF THE UK ASSOCIATION FOR MUSIC EDUCATION – MUSIC MARK

Independent examiner's report to the trustees of Music Mark

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2021.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent Examiner's Statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

James Cross

(FCA, ICAEW)

For and on behalf of Moore Kingston Smith LLP

Chartered Accountants

Devonshire House 60 Goswell Road London EC1M 7AD

Date: 8 October 2021

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The UK Association for Music Education – Music Mark

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

For the year ended 31 March 2021

Note
Income from:
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Investments
5		 Total
Total
Unrestricted
Restricted
Funds
Unrestricted
Restricted
Funds
Funds
Funds
2021
Funds
Funds
2020
£
£
£
£
£
£
15,376
380,353
395,729
3,010
4,627
7,637
217,880
-
217,880
279,292
17,589
296,881
27,359
-
27,359
42,310
-
42,310
124
-
124
395
-
395
Total income 260,739 380,353 641,092 325,007 22,216 347,223
Expenditure on:
Raising funds
6
Charitable activities
7
Other
8		 7,959
7,959 7,484
- 7,484
205,687 77,000 282,687 280,431 26,518 306,949
7,567
7,567 7,894
- 7,894
Total expenditure 221,213 77,000 298,213 295,809 26,518 322,327
Net income/(expenditure) 39,526 303,353 342,879 29,198
(4,302)
24,896
Net movement in funds 39,526 303,353 342,879 29,198
(4,302)
24,896
Reconciliation of funds:
Total funds brought
forward
Total funds carried
forward		 141,484 9,614 151,098 112,286 13,916 126,202
181,010 312,967 493,977 141,484 9,614 151,098

All activities derive from continuing operations.

A Statement of Recognised Gains and Losses is not required as all gains and losses are included in the Statement of Financial Activities.

The notes on pages 15 to 25 form part of these financial statements

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The UK Association for Music Education – Music Mark

BALANCE SHEET as at 31 March 2021

Note
Current assets:
Debtors
15
Cash at bank and in hand
16
Total current assets
Liabilities:
Creditors: amounts falling due within one year
17
Net current assets
Total net assets
The funds of the charity:
21
Unrestricted funds
Restricted income funds
Total charity funds		 £
£
£
£
349,446
57,842
306,395
242,627
655,841
300,469
(161,864)
(149,371)
493,977
151,098
493,977
151,098
181,010
141,484
312,967
9,614
493,977
151,098
Total funds
31-Mar-21
Total funds
31-Mar-20

For the year ended 31 March 2021 the charity was entitled to exemption from audit under Section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibility for complying with the requirements of the Act with respect accounting records and for the preparation of the accounts.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved by the Trustees and authorised for issue on 7[th] October 2021 and were signed on their behalf by:

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…………………………………….. ……………………………………..
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James Dickinson Chair

David Little Trustee and Honorary Treasurer

Registered Company Number 6134823

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The UK Association for Music Education – Music Mark

CASH FLOW STATEMENT

For the year ended 31 March 2021

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Total funds Total funds
Note
2021 2020
Cash flows from operating activities:
Net cash provided by operating activities 21 63,644 34,108
Cash flows from investing activities:
Dividends, interest and rents from investments 124 395
Net cash provided by investing activities 124 395
Cash flows from financing activities:
Change in cash and cash equivalents in the reporting period 22 63,768 34,503
Cash and cash equivalents at the beginning of the reporting
242,627 208,124
period
Cash and cash equivalents at the end of the reporting period 306,395 242,627
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The UK Association for Music Education – Music Mark NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

1.1 ACCOUNTING CONVENTIONS

The financial statements have been prepared under the historical cost convention and in accordance with the Companies Act 2006 and, as a public benefit entity, also with the requirements of the Statement of Recommended Practice Accounting and Reporting by Charities under Financial Reporting Standard (FRS) 102.

The financial statements are prepared in sterling, which is the functional currency of the Charity.

Monetary amounts in these financial statements are rounded to the nearest pound.

1.2 GOING CONCERN

The financial statements have been prepared on a going concern basis.

Having carried out regular review of services and provision together with appropriate risk analysis in light of the current pandemic relating to COVID-19 and adapted services and provision accordingly, including taking much of its provision online, the indication is that the charity will remain solvent. Trustees remain satisfied that the charity has sufficient cash flow to meet its liabilities as they fall due for at least one year from the date of approval of the financial statements.

1.3 ACCOUNTING ESTIMATES

In the view of the Trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements, nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

1.4 TANGIBLE FIXED ASSETS AND DEPRECIATION

Assets with a cost in excess of £500 that are intended to be of on-going use to Music Mark in carrying out its activities are capitalised as fixed assets.

Depreciation is provided at rates calculated to write off the cost of fixed assets, less their residual value, over their expected useful lives on the following basis:

Office Equipment - 3 years on a straight-line basis

1.5 INCOME

All incoming resources are included on the Statement of Financial Activities when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Some Music Service and corporate members’ membership fees relate to the twelve months following joining Music Mark. These fees are credited to income pro rata in accordance with the financial year.

Income received in advance of the period or the event to which it relates is shown as deferred income at the balance sheet date.

1.6 EXPENDITURE

All expenditure is accounted for on an accruals basis as the liability is incurred and has been classified under headings that aggregate all costs related to each activity.

1.7 VALUE ADDED TAX

The Charity is registered for Value Added Tax and charges and remits and recovers tax as appropriate on its income and expenditure.

1.8 TAXATION

The Charity is exempt from tax on income and gains falling within sections 472-489 of the Corporation Tax Act 2010 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

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The UK Association for Music Education – Music Mark NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

1.9 FUND ACCOUNTING

Unrestricted funds can be used in accordance with the charitable objectives at the Trustees’ discretion.

Restricted funds can only be used for prescribed purposes, within the objects of the Charity, when specified by the donor or when funds are raised for particular identified purposes. Further explanation of the nature of each fund is included in the notes to the financial statements.

1.10 STAFF AND SUPPORT COSTS

Staff costs are attributed to activities based on estimates of time spent by each member of staff on each activity. The costs of support activities, being General management and Governance as detailed in Notes 9a and 9b, are allocated to the expenditure headings that appear on the Statement of Financial Activities in proportion to the directly attributed staff costs, subject to any specific allowances specified in the terms of the use of restricted funds.

1.11 FINANCIAL INSTRUMENTS

The Charity has elected to apply the provisions of Section 11’Basic Financial instruments’ of FRS102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Basic financial liabilities, including trade and other payables that are classified as debt, are initially recognised at the transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities then, in which case, trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest rate method.

1.12 CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash at banks and in hand and short-term deposits with a maturity date of three months or less.

2 INCOME - DONATIONS AND LEGACIES

Arts Council England (ACE)
Other
Total donations and legacies		 Total
Total
Unrestricted
Restricted
Funds
Unrestricted
Restricted
Funds
Funds
Funds
2021
Funds
Funds
2020
£
£
£
£
£
£
15,274 380,353 395,627
- 4,627
4,627
102
- 102 3,010
-
3,010
15,376 380,353 395,729 3,010 4,627
7,637

Music Mark had confirmation that they will receive grants from ACE that will be used over the next 2 years. This grant income is recognised in full as it required under the Statement of Recommended Practice. Expenditure of these grants will be recognised as they are incurred.

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The UK Association for Music Education – Music Mark NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

3
Total
Total
Unrestricted
Restricted
Funds
Unrestricted
Restricted
Funds
Funds
Funds
2021
Funds
Funds
2020
Membership services:
£
£
£
£
£
£
Membership subscriptions
44,570
-
44,570 142,361
-
142,361
Annual conference fees
144,975
-
144,975 103,097
- 103,097
Other conference fees
-
-
- 234 17,589
17,823
Education services:
Training course fees
21,805
-
21,805 20,753
-
20,753
Services
6,530
-
6,530 12,847
-
12,847
INCOME - CHARITABLE ACTIVITIES
Total charitable activities
217,880
- 217,880 279,292 17,589
296,881
4
Total
Total
Unrestricted
Restricted
Funds
Unrestricted
Restricted
Funds
Funds
Funds
2021
Funds
Funds
2020
£
£
£
£
£
£
Advertising
7,200
- 7,200 28,560
-
28,560
Sponsorship
15,159
- 15,159 13,750
-
13,750
Services
5,000
- 5,000
-
-
-
INCOME - OTHER TRADING ACTIVITIES
Total other trading activities
27,359
- 27,359 42,310
-
42,310

Advertising income relates to the placement of job adverts on behalf of members on the Music Mark website. Sponsorship income is received for promotional services provided for the Associated Board of the Royal Schools of Music (ABRSM). Services relates to admin support supplied to Printed Music Licensing Ltd (PMLL).

5 INCOME – INVESTMENTS

Bank interest
Total investment income		 Total
Total
Unrestricted
Restricted
Funds
Unrestricted
Restricted
Funds
Funds
Funds
2021
Funds
Funds
2020
£
£
£
£
£
£
124
-
124
395
-
395
124
-
124
395
-
395

Page 17

The UK Association for Music Education – Music Mark NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

Staff costs (direct)
Support and indirect staff costs
Total Raising funds		 Total
Total
Unrestricted
Restricted
Funds
Unrestricted
Restricted
Funds
Funds
Funds
2021
Funds
Funds
2020
£
£
£
£
£
£
3,665
-
3,665 3,622
-
3,622
4,293
-
4,293 3,862
-
3,862
7,958
- 7,958 7,484
-
7,484

Costs of raising funds represents staff time, associated support costs for identifying and applying for grant income and developing other income streams.

Membership support:
Freelance and consultants
Technical support and other
Staff costs (direct)
Support and indirect staff costs
Annual and other conferences:
Hotel and venue hire
Technical support and other
Freelance and consultants
Staff costs (direct)
Support and indirect staff costs
Training and education:
Venue hire
Freelance and consultants
Technical support and other
Staff costs (direct)
Support and indirect staff costs
Total Charitable activities		 Total
Total
Unrestricted
Restricted
Funds
Unrestricted
Restricted
Funds
Funds
Funds
2021
Funds
Funds
2020
£
£
£
£
£
£
7,833
- 7,833
-
-
-
3,948 44,117 48,065 11,265
-
11,265
35,835 32,883 68,718 73,790
-
73,790
55,003
- 55,003 78,677
-
78,677
-
-
- 40,766 11,456
52,222
27,079
- 27,079 24,149 541
24,690
8,250
- 8,250 6,782 4,993
11,775
7,916
- 7,916 7,363 3,900
11,263
9,273
- 9,273 7,851
-
7,851
-
-
- 4,411 3,643
8,054
1,169
- 1,169 9,740 1,406
11,146
2,428
- 2,428 2,934 579
3,513
21,623
- 21,623 6,148
-
6,148
25,330
- 25,330 6,555
-
6,555
205,687 77,000 282,687 280,431 26,518
306,949

During 2020/21 membership support costs increased as online support and training via the Hub Support Programme were provided to members of Music Mark as physically attended events were unable to happen. These activities are partACE funded and comprise a mix of paid-for and free-to-member support and training. A new membership support cost this year is the freelance and consultants line, for services enabling Music Mark to deliver said events. A new cost in Technical support includes software for online webinars, the remainder is postage and office supplies. Annual and other conferences include the annual conference which was held online, under technical and support the costs are the majority of the audiovisual technician fees & equipment hire for recording the conference, event management, speaker fees, however there are minimal catering and travel fees. Training and Education costs are from CPD sessions held online, this is made up of consultants who ran the sessions and software costs.

Page 18

The UK Association for Music Education – Music Mark

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

8
OTHER EXPENDITURE
Other trading activities:
Technical support and other
Staff costs (direct)
Support and indirect staff costs		 Total
Total
Unrestricted
Restricted
Funds
Unrestricted
Restricted
Funds
Funds
Funds
2021
Funds
Funds
2020
£
£
£
£
£
£
1,281
- 1,281 - -
-
2,895
- 2,895 3,821
-
3,821
3,392
- 3,392 4,074
-
4,074
Total 7,568
-
7,568 7,895
-
7,895
9a
Total
Total
Unrestricted
Restricted
Funds
Unrestricted
Restricted
Funds
Funds
Funds
2021
Funds
Funds
2020
General management:
£
£
£
£
£
£
IT & general office costs
9,065
- 9,065 10,804
-
10,804
Office rent
10,431
- 10,431 13,707
-
13,707
Insurance
728
- 728 209
- 209
Consultancy & support fees
10,584
- 10,584
-
-
-
Travel and subsistence
1,788
- 1,788 818
- 818
Printing and advertising
893
- 893 1,561
-
1,561
Accountancy services
7,750
- 7,750 13,035
-
13,035
Staff costs
28,953
- 28,953 35,719
-
35,719
Staff training
572
- 572 75
- 75
Bad debts & miscellaneous
457
- 457 604
- 604
SUPPORT COSTS – General management
Total General management 71,221
-
71,221 76,532 -
76,532

General management costs include IT, accommodation, other general office costs and staff costs for the day-to-day management of the charity.

9b SUPPORT COSTS – Governance

Governance:
Staff costs
Accounts preparation
Independent examination
Travel and meeting costs
Strategic development
Total Governance costs
Total support costs		 Total
Total
Unrestricted
Restricted
Funds
Unrestricted
Restricted
Funds
Funds
Funds
2021
Funds
Funds
2020
£
£
£
£
£
£
10,995
- 10,995 14,487
-
14,487
3,084
-
3,084 600
-
600
4,025
-
4,025 3,399
-
3,399
-
- - 1,947
-
1,947
7,966
-
7,966 4,053
-
4,053
26,070
- 26,070 24,486
-
24,486
97,291
- 97,291 101,018
-
101,018

Governance costs include staff costs for supporting the Trustee meetings for the strategic planning for the charity, the preparation of statutory accounts and independent examination fees.

Page 19

The UK Association for Music Education – Music Mark NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

10 ALLOCATION OF SUPPORT COSTS

Total
Unrestricted
Restricted
Funds
Unrestricted
Funds
Funds
2021
Funds
£
£
£
£
Raising funds
4,293
-
4,293 3,862
Charitable activities:
Membership support
55,003
- 55,003 78,677
Annual and other conferences
9,273
-
9,273 3,951
Education services
25,330
- 25,330 6,555
Other expenditure
3,392
- 3,392 4,074		 Total
Restricted
Funds
Funds
2020
£
£

-
3,862

-
78,677
3,900
7,851

-
6,555

-
4,074
Total allocated support costs
97,291
- 97,291 97,119
3900
101,019
11
EMPLOYEES
Chief Executive
1
1
3
2.8
Support costs are allocated to other activities in proportion to direct staff costs incurred by those activities.
Year ended 31-Mar
2021
The average number of employees during the year was:
No.
Year ended 31-Mar
2020
No.
Office and administrative support
4 3.8
4
The average number of full-time equivalent employees during the year		 3.8
12a STAFF COSTS
Wages and salaries
137,421
National insurance
4,231
Pension contributions
3,113
2021
Year ended 31-Mar
£
Staff costs for the above employees:
134,884

11,078

2,890
2020
Year ended 31-Mar
£
144,765
148,852
Pension contributions relate to payments made for members of staff in the NEST auto-enrolment
The number of higher paid employees was as follows:
Total emoluments (salary)
£60,000 to £69,999
1
No.
Year ended 31-Mar
2021		 scheme.
1
No.
Year ended 31-Mar
2020

The Trustees consider that the Chief Executive represents the key management personnel for the Charity. The total remuneration (salary, Employer’s National insurance costs and pension contributions) for the Chief Executive for the year was £73,301.69 (2020 - £72,437).

Page 20

The UK Association for Music Education – Music Mark NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

12b ALLOCATION OF STAFF COSTS BY ACTIVITY

Total
Total
Unrestricted
Restricted
Funds
Unrestricted
Restricted
Funds
Funds
Funds
2021
Funds
Funds
2020
Activities:
£
£
£
£
£
£
Raising funds
3,665
-
3,665 3,622
-
3,622
Membership support
35,835 32,883 68,718 73,790
-
73,790
Annual and other conferences
7,916
-
7,916 7,363 3,900
11,263
Education services
21,623
- 21,623 6,148
-
6,148
Other trading activities
2,895
-
2,895 3,821
-
3,821
Support costs:
General management
28,953
-
28,953 35,719
-
35,719
Governance
10,995
-
10,995 14,487
-
14,487
Total staff costs
111,882 32,883 144,765 144,950 3,900
148,850
NET INCOME
4,025
3,500
(500)
(101)
Independent examiner’s fee: - current year
Independent examiner’s fee: - prior year
Net income is stated after charging:
costs have been allocated to activities, including to support costs, based on the estimated time spent.
Year ended 31-Mar
Year ended 31-Mar
2021
2020
£
£

Staff costs have been allocated to activities, including to support costs, based on the estimated time spent.

13 NET INCOME

14 TRUSTEES’ REMUNERATION AND BENEFITS

During the year no payments were made to Trustees. (2020 - £632 was paid to 4 Trustees).

15 DEBTORS

Trade debtors
Other debtors:
Supplier refunds due
Train ticket loan
PMLL advance
Undeposited funds
Prepayments
Accrued income
Year		 26,282
39,620
-
7,492
-
1,827
-
1,000
-
60
5,874
7,843
317,290
-
349,446
57,842
£
£
ended 31-Mar
Year ended 31-Mar
2021
2020

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The UK Association for Music Education – Music Mark NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

----- Start of picture text -----
16 CASH AT BANK AND AT HAND
Year ended 31-Mar Year ended 31-Mar
2021 2020
£ £
Bank – current accounts 1,647 500
Bank – deposit accounts 304,748 242,127
306,395 242,627
17 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Year ended 31-Mar Year ended 31-Mar
Note 2021 2020
£ £
Other taxes and social security costs 13,920 13,478
Other creditors (see below) 38,377 50,803
Accruals & deferred income 18 89,579 84,486
Trade creditors 19,988 604
161,864 149,371
Other Creditors breakdown
Monies held for regional groups of music service members
North west 1,557 1,557
West Midlands 24,694 31,177
Eastern 6,000 6,000
North East 1,426 4,326
33,677 43,060
PMLL liabilities for licence invoices raised 4,700 -
Pensions liability - 593
Provision for credit notes - 7,150
38,377 50,803
----- End of picture text -----

Page 22

The UK Association for Music Education – Music Mark

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

18 ACCRUALS AND DEFERRED INCOME

Trade accruals
Trade creditors
Total Accruals and creditors
Deferred income:
Annual subscriptions
Training fees
Sponsorship and other funding
Total Deferred income
Totals
Year		 17,204
10,645
19,988
604
37,192
11,249
62,825
51,387
4,550
11,954
5,000
10,500
72,375
73,841
109,567
85,090
ended 31-Mar
Year ended 31-Mar
2021
2020
£
£

Deferred income includes annual subscriptions paid by Music Service members for 2021/22 that were invoiced in advance by request before 31 March 2021 together with other annual membership options that were paid for periods extending beyond 31 March 2021. Sponsorship is ABRSM for training events in 2021/22 and training fees for CPD ticket income for sessions in 2021/22.

Deferred Income

Deferred Income Deferred Income
Deferred income at 1 April 2020
73,841
Income deferred in the year
72,375
(73,841)
Year ended 31-Mar
2021
£
Amounts released from previous years
Deferred income at 31 March 2021 72,375
Total
Unrestricted
Restricted
Funds
Unrestricted
Restricted
Funds
Funds
2021
Funds
Funds
£
£
£
£
£
Current assets
342,874 312,967 655,841 290,855 9,614
Current liabilities
(161,864)
-
(161,864)
(149,371)
-
ANALYSIS OF NET ASSETS BETWEEN FUNDS		 Total
Funds
2020
£
300,469
(149,371)
Total funds
181,010 312,967 493,977 141,484 9,614		 151,098

19 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Page 23

The UK Association for Music Education – Music Mark NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

----- Start of picture text -----
20 MOVEMENT IN FUNDS
Transfer
At 1st April At 31st
Income Expenditure between
2020 March 2021
funds
Unrestricted funds: £ £ £ £ £
General fund 141,484 260,739 (221,213) - 181,010
Restricted income funds:
Arts Council England LDP - 380,353 (77,000) - 303,353
North West Conference 9,364 - - - 9,364
South Yorks. Conference 250 - - - 250
Total Restricted Funds 9,614 380,353 (77,000) - 312,967
Total Funds 151,098 641,092 (298,213) - 493,977
20 MOVEMENTS IN FUNDS (continued)
Transfer
At 1st April between At 31st
2019 Income Expenditure funds March 2020
Unrestricted funds: £ £ £ £ £
General fund 112,286 325,007 (295,809) - 141,484
Restricted income funds:
Arts Council England LDP 1,000 4,627 (5,627) - -
North West Conference 12,916 15,525 (19,077) - 9,364
South Yorks. Conference - 2,064 (1,814) - 250
Total Restricted Funds 13,916 22,216 (26,518) - 9,614
Total Funds 126,202 347,223 (322,327) - 151,098
21 RECONCILIATION OF NET INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES
Year ended 31-Mar Year ended 31-Mar
2021 2020
£ £
Net income 342,879 24,896
Interest received (124) (395)
Increase in debtors and prepayments (291,604) 22,035
Increase in creditors, accruals and deferred income 12,493 (12,428)
Net cash flow from operating activities 63,644 34,108
22 NET MOVEMENT IN CASH FOR THE YEAR
At 1st April At 31st
Cash flow
2020 March 2021
£ £ £
Cash at bank and in hand 242,627 63,768 306,395
Page 24
----- End of picture text -----

The UK Association for Music Education – Music Mark

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

RELATED PARTY

23 TRANSACTIONS

Eight trustees who served during the year; James Dickinson, Yogesh Dattani, Jan Ford, David Little, Peter Smalley, Kerry Watson, Peter Bolton, and Jennifer Gilbert were employed during the year by Music Education Organisations that paid membership fees, and for conference and training attendance. Maureen Hanke and Martin Fautley were individual paid-up members of Music Mark during the year. These fees were were at standard, advertised ‘arms-length’ rates.

Page 25