Charity Registration No. 1144998 Company Registration No. 07341744 (England and Wales)
LA NUOVA MUSICA
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
LA NUOVA MUSICA
CONTENTS
Page(s) Legal and Administrative Information………………………………… 3 Trustees' Report…………………………………………………………… 4-9 Independent Examiner's Report………………………………………… 10 Statement of Financial Activities……………………………………..… 11 Balance Sheet……………………………………………………………… 12-13 Notes to the Accounts……………………………………………………. 14-19
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LA NUOVA MUSICA
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees A L Cornforth - Chairperson and Trustee (resigned on 18/06/21) D F M Côté - Chairperson and Trustee (appointed on 18/06/21 J Ashford - Trustee (appointed on 23/09/20) D S Bernstein - Trustee D S J Clegg - Trustee A F Hickey QC - Trustee J Liverseidge-Bowling - Trustee (appointed on 25/11/20 L A Rettie - Trustee (resigned on 18/06/21) Artistic Director D P Bates Bank Lloyds Bank plc Blue Boar Row Salisbury, Wiltshire Charity Number 1144998 Company Number 07341744 Registered Office Lower Ground Floor 49 Blatchington Road Hove East Sussex BN3 3YJ Independent Examiner Durston Gibb 49 Blatchington Road Hove East Sussex BN3 3YJ
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LA NUOVA MUSICA
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020
The Board of Trustees of La Nuova Musica present their report and accounts for the year ended 31 December 2020. The legal and administrative information set out on the first page of these accounts forms part of this report.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake and the public benefit which should be achieved. The Trustees have determined that the objects of the Charity are to advance the education of the public in the appreciation of music.
The Board of Trustees has considered the guidance on public benefit duties published by the Charities Commission and considers that through La Nuova Musica’s musical activity, it has delivered public benefit in accordance with the aims of the Charity. La Nuova Musica’s repertoire reflects the chief musical forms of the Baroque and early Classical periods and includes concerts, performance of opera, (often in semi-staged versions which improve accessibility), and recording projects. La Nuova Musica regularly conducts pre and post-concert conversations with our audiences, open rehearsals, and mounts master classes with established opera singers and recent graduates from Music Conservatories.
During the period of the Covid 19 pandemic, when restrictions have prevented the Charity from operating normally, La Nuova Musica has pursued its objective by presenting online performances and talks, as described under “achievements and performance” below. The Trustees anticipate that there will continue to be some emphasis on hybrid performance, combining live and digital content, as the performing world gradually returns to normal, or near normal over the next twelve months. The Trustees will continue to explore the potential for digital performance to enhance the range of opportunities available to the Charity.
The Board of Trustees regularly reviews the risks to which La Nuova Musica is exposed and identifies their possible impacts. Systems have been established to mitigate those risks and procedures developed to eliminate, manage, mitigate or transfer the risk. These procedures are periodically reviewed to ensure that they still meet the needs of La Nuova Musica.
The Charity does not have any employees, but adopts a policy of consulting its freelance members of staff, and discussing matters with them that are likely to affect their interests. Members of staff are made aware of the financial and economic factors affecting the Charity’s performance.
Applications by disabled persons would be fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of any member of staff becoming disabled, every effort would be made to ensure that their relationship with the Charity continues and that the appropriate training is arranged. It is the policy of the Charity that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other members of staff.
OBJECTIVES AND ACTIVITIES
La Nuova Musica (“LNM”, or the “Charity”) is a period ensemble established by acclaimed director David Bates, which is dedicated to the music of the Baroque and early Classical periods. It aims to provide the highest standard of musical performance of 17th and 18th century repertoire for the benefit of as wide an audience as possible.
La Nuova Musica takes its name from Le nuove musiche , a treatise published in 1602 in Florence by the early Baroque composer Giulio Caccini (1551-1618). Le nuove musiche includes musical examples of how singers can convey precise emotion through ornamentation of a melodic line and LNM has used Le nuove musiche as the guiding principle in its approach to its musical performances.
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LA NUOVA MUSICA
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) - CONTINUED - FOR THE YEAR ENDED 31 DECEMBER 2020
A natural consequence of the inspiration that LNM has found within the principles of Le nuove musiche is that all its performances, whether of vocal or instrumental music, are consciously imbued with a sense of drama. David Bates believes that, through a commitment to a sense of theatre, LNM accesses the emotional and psychological heart of the repertoire that it performs.
A distinguishing characteristic of LNM’s work is its passion for the discovery and performance of lesserknown gems from the Baroque era. Examples of this have been Cesti’s Orontea and Conti’s L’Issipile , both of which were part of a continuing series of concert performances of opera at the Wigmore Hall, and the latter of which formed part of our programme of performances for 2019. In addition, during 2019, LNM continued its pattern of rediscovery projects with a performance of opera arias by Tommaso Traetta. This rediscovery of the old is coupled with commissioning of the new. LNM is dedicated to the support and discovery of new music, which complements its performance of the more established repertoire.
LNM also believes in the importance of maintaining a recording programme to support its aim that its artistic activity should reach the broadest possible audience. In accordance with this aim, its recording of Gluck’s Orfeo ed Euridice was released as scheduled during 2019 as part of LNM’s new partnership with the Pentatone recording label. Despite the challenges presented during 2020, LNM took advantage of the opportunity to undertake its latest recording project, entitled “Handel’s Unsung Heroes” which is due to be released on the Pentatone label in 2021.
ACHIEVEMENTS AND PERFORMANCE
Far from being dead and remote, the music and texts of the Baroque and early Classical eras help 21st century listeners to ponder the concerns of human nature in an emotionally truthful way. Coming to us from an age before technical means of communication and enhancement of sound were available, the music’s impact is colourful, sophisticated and visceral. David Bates’ emphasis on communicating the emotions contained in this musical repertoire creates an experience that is both accessible and compelling and forms the hallmark of his performing style. This was evidenced in the achievements and performances of 2020, which are set out below.
In January LNM performed a programme at the Wigmore Hall. A French Affair, a performance of Purcell alongside Charpentier, celebrating the genius of Henry Purcell, who was influenced by Lully and Charpentier, and who influenced Rameau and Blow. As the next project in LNM’s commissioning series, Cassandra Miller was asked to write a piece that not only was influenced by the sound of late 17th century London, but which also gave insight into the composer’s appreciation of the Henry Purcell and his music.
In January LNM performed a programme at the Wigmore Hall. A French Affair, a performance of Purcell alongside Charpentier, celebrating the genius of Henry Purcell, who was influenced by Lully and Charpentier, and who influenced Rameau and Blow. As the next project in LNM’s commissioning series, Cassandra Miller was asked to write a piece that not only was influenced by the sound of late 17th century London, but which also gave insight into the composer’s appreciation of the Henry Purcell and his music.
Unfortunately, in March 2020, the UK entered a period of national lockdown and all LNM’s scheduled performances for the year were eventually cancelled from that date.
However, LNM continued with its musical activity through an enhanced online presence. A small team of single strings and continuo accompanying counter-tenor Tim Mead and tenor Andrew Staples recorded some exclusive online material, Purcell’s Finest Verses, (eight of his songs and one instrumental piece) in July for release one a week through September and October.
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LA NUOVA MUSICA
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) - CONTINUED - FOR THE YEAR ENDED 31 DECEMBER 2020
Finally, in the brief gap during the Autumn when it was possible to achieve, LNM undertook its latest recording, “Handel’s Unsung Heroes” shining the light on the obbligato instrumentalists, violinist Thomas Gould, oboist Leo Duarte and bassoonist Joe Qiu as they duetted as equal partners alongside a world-class line up of soloists – soprano Lucy Crowe, mezzo soprano Christine Rice and countertenor Iestyn Davies. This disc, the second recorded by LNM for Pentatone, highlights how Handel wrote music as virtuosic and lyrical for his unsung heroes as for their singing counterparts, in arias from Handel masterpieces such as Rinaldo, Giulio Cesare, Agrippina and Ariodante.
In December LNM was invited to record a new programme, FolkBaroque with Lucy Crowe in LSO St Luke’s, for release as part of the completely online Festival, Baroque at the Edge, in January 2021. This recorded performance was very well received by the Festival audience and was featured on the Gramophone website and was subsequently broadcast on Radio 3 as one of their midweek evening performances.
FINANCIAL REVIEW
The accounts have been prepared for the year from 1 January 2020 to 31 December 2020, which is the ninth accounting period of the charitable company. During the year to 31 December 2020, in addition to a much lower than usual level of income received as performance fees, La Nuova Musica has received additional funding from sponsors and supporters who have supported concerts and provided contributions for management costs.
The Charity is entitled to an Orchestral Tax Relief claim for the year to December 2019 amounting to £11,886. A claim has been submitted to HMRC and is still outstanding. No claim could be submitted for the year 2020.
The Trustees are most grateful to the charitable trusts, companies and individuals who support the work of the Charity. During the year, donations and sponsorship totalling £66,085 (2019 - £35,729) were made to the Charity. These included donations and grants from The 29[th] of May 1961 Charitable Trust, The Derek Hill Foundation, The Leche Trust, The Radcliffe Trust, The Leigh Trust, The Hinrichsen Foundation, as well as many other generous individuals without whom the Charity could not continue.
During the year, the Charity benefited greatly from the dedicated work of its newly established management team that provided it with the professional support structure that is needed to facilitate the smooth running of its activities, but without an overly burdensome layer of fixed costs. Maintaining this balance remains a challenge, but the Trustees believe that by the use of freelance members of staff whose level of activity can be tailored to match those of the Charity at any given time, they are able to achieve an appropriate balance of cost control and professional resource. During the year under review, management costs totalled £35,016.
The Trustees believe that the management team’s range of skills enables the Charity to meet its artistic aspirations and objectives. However, the Trustees keep the cost base of the Charity under constant review. The Trustees are most grateful for the extensive contributions made by the management team during 2020.
The Charity has benefited materially in this and previous years from the receipt of monies from claims for Orchestral Tax Relief. This has made a very significant positive difference to the Charity’s financial position during the year. However, due to the severe effect of the Covid 19 pandemic on the Charity’s activities, the level of any Orchestral Tax Claims are likely to be lower for 2021.
The net deficit of La Nuova Musica at the year-end stood at £36,584, a sharp reversal of the net surplus of £18,150 reported for the year to December 2019. Despite the exceptionally difficult environment, the total fund balance on 31 December 2020 was still at £54,319.
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LA NUOVA MUSICA
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) - CONTINUED - FOR THE YEAR ENDED 31 DECEMBER 2020
During 2020, the Trustees proposed the establishment of a reserve to be set at a level of £15,000, being broadly equivalent to three months’ average expenses for the Charity.
Loan from David Bates
Prior to the incorporation of the charitable company on 10 August 2010, La Nuova Musica was a sole trader business of David Bates. Following incorporation, certain assets and liabilities were transferred to the Charity and approved by the Board of Trustees. All the assets transferred and disbursements made on behalf of the Charity have been aggregated to form the balance of a loan payable to David Bates.
The Board of Trustees and David Bates have agreed that the repayment of this loan will be postponed until after the creation of a reserve from unrestricted funds, and any amount to be repaid will be linked to that reserve. Consideration will therefore be given to the repayment of this loan in due course.
At 31 December 2020 the outstanding balance of the loan was £12,978 (2019 - £12,978). No interest has been paid or accrued on this loan, and no repayment date has been established. The loan is not repayable within the next 12 months and has accordingly been included in creditors falling due after more than one year.
Music Recording Asset
In February 2011, the Charity completed the recording of Il Pastor Fido, the costs for which were funded from unrestricted sponsorship and cash advanced by a member of the Board of Trustees, and entered into a master license agreement dated with Harmonia Mundi USA, an independent music record label.
During 2012, £63,460 was spent on a further recording project of Handel’s Dixit Dominus. Based on the sales of Il Pastor Fido the Board of Trustees felt that it was appropriate to apply a 90% impairment to this music recording asset.
During 2014, La Nuova Musica recorded the Royal Trio programme with the internationally acclaimed countertenor Lawrence Zazzo and then recorded Sacrifices, an album of early oratorios by Charpentier and Carissimi, together with instrumental music by Sebastien de Brossard. The recording was released in February 2015.
In 2015, La Nuova Musica recorded Leҫons de Ténèbres, with Lucy Crowe and Elizabeth Watts. This fifth recording with Harmonia Mundi was entirely funded from unrestricted sponsorship. This recording was released in September 2016.
In 2016, as its sixth recording project with Harmonia Mundi, LNM made a small-scale recording of the Bach cantatas BWV 54 and BWV 170 and Pergolesi’s Stabat Mater with the internationally recognised soloists Tim Mead, countertenor and Lucy Crowe, soprano. This recording was released in June 2017. During 2017, the master licence agreement with Harmonia Mundi USA ended.
During 2018, La Nuova Musica recorded a performance of Gluck’s Orfeo ed Euridice with Iestyn Davies, which was released on the Pentatone label in Autumn 2020.
As reported above, during 2020, La Nuova Musica recorded “Handel’s Unsung Heroes” which is due to be released on the Pentatone label in the near future.
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LA NUOVA MUSICA
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) - CONTINUED - FOR THE YEAR ENDED 31 DECEMBER 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT
La Nuova Musica is a Private Company Limited by Guarantee (Registered in England Number 07341744), incorporated on 10 August 2010 and governed by the Memorandum and Articles of Association which were approved on 10 October 2011. La Nuova Musica is also a Registered Charity (Registered Charity Number 1144998). Authorisation to dispense with the word “Limited” was granted on 10 August 2010. La Nuova Musica is committed to achieving its aims through an artistic programme of concerts, education and recordings.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (FRS 102 - as amended for accounting periods commencing from 1 January 2016).
The charitable company is governed by the Board of Trustees which sets the policy of the Charity, determines corporate strategy, including setting key strategic objectives, makes major decisions about the use of finances, ensures the propriety of those finances and any financial disclosures to the public and sets a framework for human resources policy. The Board of Trustees meets at least four times a year to oversee the work of the Charity and delegate day-to-day management of La Nuova Musica to the Artistic Director, David Bates, and to the General Manager, Lucy Bending, within a clearly understood framework of strategic control. Throughout this document the term Trustees refers to the Trustees and Directors who govern the work of La Nuova Musica
Under the terms of the Articles of Association, the Trustees have the power to appoint new Trustees having regard to the requirement for special skills and needs of the Charity. New Trustees are made aware of their legal obligations under Charity law and the aims and Objects of the Charity. The Trustees are also the directors for the purpose of company law, and those who served during the year were:
John Ashford (appointed 23 September 2020) David Bernstein David Clegg Alexandra Cornforth Alexander Hickey QC Janice Liverseidge-Bowling (appointed 25 November 2020) Louise Rettie
Following the year end, Diane Cote joined the Board as a Trustee. Also following the year end, Alexandra Cornforth resigned as a Trustee.
None of the Trustees has any beneficial interest in the charitable company. All of the Trustees are members of the Company and guarantee to contribute £1 in the event of a winding up.
The Charity’s current policy concerning the payment of trade creditors is to follow the Prompt Payment Code.
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LA NUOVA MUSICA
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) - CONTINUED - FOR THE YEAR ENDED 31 DECEMBER 2020
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The Trustees, who are also the Directors of La Nuova Musica for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the Charitable Company for that year.
In preparing these accounts, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees' report was approved by the Board of Trustees .
Ms D F M Côté Chairperson and Trustee Dated 15 September 2021
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LA NUOVA MUSICA
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF LA NUOVA MUSICA
I report to the Trustees on my examination of the financial statements of La Nuova Musica (the Charity) for the year ended 31 December 2020.
Responsibilities and Basis of Report
As the Trustees of the Charity (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 financial statements of the Charity 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 the Charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable 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 that in any material respect:
accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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 financial statements to be reached.
Richard Gibb FCA
Durston Gibb 49 Blatchington Road Hove East Sussex BN3 3YJ
Dated 1 October 2021
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LA NUOVA MUSICA
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020
| Note 2020 2020 2020 2019 Unrestricted Restricted Total Total £ £ £ £ |
Note 2020 2020 2020 2019 Unrestricted Restricted Total Total £ £ £ £ |
Note 2020 2020 2020 2019 Unrestricted Restricted Total Total £ £ £ £ |
Note 2020 2020 2020 2019 Unrestricted Restricted Total Total £ £ £ £ |
Note 2020 2020 2020 2019 Unrestricted Restricted Total Total £ £ £ £ |
|
|---|---|---|---|---|---|
| INCOME from | |||||
| Donations & Grants | 3 | 23,155 | 42,930 | 66,085 | 35,729 |
| Musical Performances & Recordings | 4 | 35,516 | - | 35,516 | 149,127 |
| Orchestra Tax Relief | - | - | - | 11,886 | |
| Gift Aid | 6,145 | - | 6,145 | - | |
| INCOME | 64,816 | 42,930 | 107,746 | 196,742 | |
| EXPEMDITURE on: | |||||
| Raising Funds | 5 | (6,907) | - | (6,907) | (1,920) |
| Charitable Activities | 6 | (95,963) | (42,810) | (138,773) | (176,672) |
| RESOURCES EXPENDED | (102,870) | (42,810) | (145,680) | (178,592) | |
| NET INCOME / (DEFICIT) FOR THE YEAR = | |||||
| NET MOVEMENT IN FUNDS (38,055) 120 (37,935) 18,150 |
|||||
| FUND BALANCES AT START OF YEAR | 87,403 | 3,500 | 90,903 | 72,753 | |
| FUND BALANCES AT END OF YEAR 49,348 3,620 52,968 90,903 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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LA NUOVA MUSICA
BALANCE SHEET AS OF 31 DECEMBER 2020
| Note 31-Dec-20 31-Dec-19 £ £ |
Note 31-Dec-20 31-Dec-19 £ £ |
Note 31-Dec-20 31-Dec-19 £ £ |
|
|---|---|---|---|
| FIXED ASSETS | |||
| Intangible Assets | 10 | 2,642 | 2,917 |
| Tangible Assets | 11 | 9,000 | 9,000 |
| FIXED ASSETS | 11,642 | 11,917 | |
| CURRENT ASSETS | |||
| Stocks | 12 | - | - |
| Trade Debtors | 13 | 5,667 | 59,602 |
| Recoverable Tax & Tax Relief | 13 | 16,857 | - |
| Cash | 55,449 | 66,590 | |
| CURRENT ASSETS | 77,973 | 126,192 | |
| CREDITORS - FALLING DUE WITHIN 1 YEAR | |||
| Taxation & Social Security | - | (10,739) | |
| Other Creditors | 14 | (23,667) | (23,489) |
| CREDITORS - FALLING DUE WITHIN 1 YEAR | (23,667) | (34,228) | |
| TOTAL NET CURRENT ASSETS 65,947 103,881 |
|||
| CREDITORS - FALLING DUE AFTER 1 YEAR | |||
| Other Creditors | 15 | (12,978) | (12,978) |
| CREDITORS - FALLING DUE AFTER 1 YEAR | (12,978) | (12,978) | |
| TOTAL NET ASSETS 52,969 90,903 |
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| INCOME FUNDS ALLOCATION | |||
| Restricted Funds | 3,620 | 3,500 | |
| Designated Funds: Reserve | 15,000 | - | |
| Unrestricted Funds | 34,349 | 87,403 | |
| TOTAL INCOME FUNDS 52,969 90,903 |
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LA NUOVA MUSICA
BALANCE SHEET - CONTINUED - AS OF 31 DECEMBER 2020
NOTE:
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act.
The Trustees are responsible for ensuring that the Charity keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the Company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the Company
These financial statements have been prepared in accordance with the provisions applicable to Companies subject to the Small Companies regime.
The accounts were approved by the Trustees on 15 September 2021.
Ms D F M Côté Chairperson and Trustee
Company Registration No. 0734174
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LA NUOVA MUSICA
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1 – ACCOUNTING POLICIES
Charity information
La Nuova Musica is a private Charitable Company limited by guarantee incorporated in England and Wales. The registered office is Lower Ground Floor, 49 Blatchington Road, Hove, East Sussex, BN3 3YJ.
1.1 Accounting convention
The accounts have been prepared in accordance with the Charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity 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.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4 Incoming resources
Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.5 Resources expended
Basic financial liabilities, including creditors and loans are initially recognised at 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. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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LA NUOVA MUSICA
NOTES TO THE FINANCIAL STATEMENTS – CONTINUED - FOR THE YEAR ENDED 31 DECEMBER 2020
Costs of generating funds comprise the costs associated with attracting voluntary income.
Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
1.6 Intangible fixed assets other than goodwill
The intangible asset comprises the brand associated with the name "La Nuova Musica" as represented by Baroque music specialists under the artistic direction of David Bates and is stated at cost less accumulated amortisation. Amortisation is recognised so as to write off the cost of the asset less its residual value on the following basis: straight line basis over 20 years.
1.7 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Musical instruments Nil Office equipment 25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
The musical instrument included in fixed assets, in the opinion of the Trustees, has an estimated residual value higher than cost, so no depreciation has been charged in order to show a true and fair view.
1.8 Impairment of fixed assets
At each reporting end date, the Charity reviews the carrying amounts of its tangible and intangible 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).
1.9 Stocks
Stocks associated with recording music are stated at the lower of cost and estimated selling price less costs to complete and sell. These costs will be matched to the revenue stream that the recorded music will generate on distribution of that music.
2 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
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 historical 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 period.
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LA NUOVA MUSICA
NOTES TO THE FINANCIAL STATEMENTS – CONTINUED - FOR THE YEAR ENDED 31 DECEMBER 2020
3 DONATIONS AND GRANTS
| 2020 2020 2020 2019 Unrestricted Restricted Total Total £ £ £ £ Donations & Gifts 23,155 42,930 66,085 35,729 Grants Receivable - - - - |
2020 2020 2020 2019 Unrestricted Restricted Total Total £ £ £ £ Donations & Gifts 23,155 42,930 66,085 35,729 Grants Receivable - - - - |
2020 2020 2020 2019 Unrestricted Restricted Total Total £ £ £ £ Donations & Gifts 23,155 42,930 66,085 35,729 Grants Receivable - - - - |
2020 2020 2020 2019 Unrestricted Restricted Total Total £ £ £ £ Donations & Gifts 23,155 42,930 66,085 35,729 Grants Receivable - - - - |
2020 2020 2020 2019 Unrestricted Restricted Total Total £ £ £ £ Donations & Gifts 23,155 42,930 66,085 35,729 Grants Receivable - - - - |
|---|---|---|---|---|
| 23,155 | 42,930 | 66,085 | 35,729 | |
| - | - | - | - | |
| Donations & Grants | 23,155 | 42,930 | 66,085 | 35,729 |
The restricted funds comprise a donation paid in 2019 which is a contribution to the cost of the performance of Ariodante, which has been postponed from 2020 to 2021 and possibly 2022.
4 INCOME FROM MUSICAL PERFORMANCES AND RECORDINGS
| 2020 2020 2020 2019 Live Perform. CD Sales Total Total £ £ £ £ |
2020 2020 2020 2019 Live Perform. CD Sales Total Total £ £ £ £ |
2020 2020 2020 2019 Live Perform. CD Sales Total Total £ £ £ £ |
2020 2020 2020 2019 Live Perform. CD Sales Total Total £ £ £ £ |
|
|---|---|---|---|---|
| Income from Performances & Recordings | 26,667 | 10 | 26,677 | 140,316 |
| Royalties | 8,839 | - | 8,839 | 8,811 |
| Income from Musical Perf. & Recordings | 35,506 | 10 | 35,516 | 149,127 |
5 COSTS OF GENERATING GRANTS AND DONATIONS
| 2020 2019 £ £ |
2020 2019 £ £ |
|
|---|---|---|
| Costs of generating Grants & Donations | (6,907) | (1,920) |
6 CHARITABLE ACTIVITIES
| 2020 2019 £ £ |
2020 2019 £ £ |
2020 2019 £ £ |
|---|---|---|
| Musical Performance Costs | (61,999) | (109,631) |
| Other Performance Costs | (26,230) | (39,421) |
| Support Costs (Note 7) | (47,637) | (24,230) |
| Governance Expenditure | (2,907) | (3,390) |
| Charitable Activities | (138,773) | (176,672) |
| Analysis by Fund: | ||
| Unrestricted Funds | 95,963 | 176,672 |
| Restricted Funds | 42,810 | - |
| Total Funds | 138,773 | 176,672 |
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LA NUOVA MUSICA
NOTES TO THE FINANCIAL STATEMENTS – CONTINUED - FOR THE YEAR ENDED 31 DECEMBER 2020
7 SUPPORT COSTS
| 2020 2020 2019 2019 |
2020 2020 2019 2019 |
2020 2020 2019 2019 |
2020 2020 2019 2019 |
2020 2020 2019 2019 |
|---|---|---|---|---|
| Split £ £ Split |
||||
| Staff Expenditure (excluding Fundraising) | (35,016) | (9,400) | General Manager Costs | |
| Operational Expenditure | (11,589) | (14,243) | Office Expenses | |
| Financial Expenditure | (756) | |||
| Depreciation | (276) | (587) | Depreciation | |
| Support Costs | (47,637) | (24,230) | **Support Costs ** |
8 EMPLOYEES
There were no employees during the year.
9 PRIOR YEAR ADJUSTMENTS
A number of income and expenditure items had been overstated or understated in previous years. Corrections are included in these accounts. The deposit prepaid in 2018 to Carnegie Hall for a performance which took place in 2019 had been omitted in last year’s accounts. Income from and expenditure for Bach’s Magnificat’s performance in late December 2019 had to be adjusted because of late billings. In addition, both the projected revenue from Gift Aid and the expected VAT charge had been overestimated due a few recording errors (these have been corrected since). Other minor adjustments have also been included.
10 INTANGIBLE FIXED ASSETS
The only intangible fixed asset of the Charity is its brand name.
| 31-Dec-20 31-Dec-19 £ £ |
31-Dec-20 31-Dec-19 £ £ |
31-Dec-20 31-Dec-19 £ £ |
|---|---|---|
| Initial Book Cost | 5,513 | 5,513 |
| Amortisation at End of Last Year | (2,596) | (2,320) |
| Amortisation Charged for the Year | (276) | (276) |
| Amortisation at End of Current Year | (2,871) | (2,596) |
| Carrying Amount at End of Last Year | 2,917 | 3,193 |
| Carrying Amount at End of Current Year | 2,642 | 2,917 |
- 17 -
LA NUOVA MUSICA
NOTES TO THE FINANCIAL STATEMENTS – CONTINUED - FOR THE YEAR ENDED 31 DECEMBER 2020
11 TANGIBLE FIXED ASSETS
| Musical Office 31-Dec-20 31-Dec-19 Instruments Equipment Total Total £ £ £ £ |
Musical Office 31-Dec-20 31-Dec-19 Instruments Equipment Total Total £ £ £ £ |
Musical Office 31-Dec-20 31-Dec-19 Instruments Equipment Total Total £ £ £ £ |
Musical Office 31-Dec-20 31-Dec-19 Instruments Equipment Total Total £ £ £ £ |
Musical Office 31-Dec-20 31-Dec-19 Instruments Equipment Total Total £ £ £ £ |
|---|---|---|---|---|
| Cost | ||||
| At Start of Year | 9,000 | - | 9,000 | 10,393 |
| Additions / (Disposals) in the Year | - | - | - | (1,393) |
| At End of Year | 9,000 | - | 9,000 | 9,000 |
| Depreciation & Impairments | ||||
| At Start of Year | - | - | - | (1,082) |
| Charged in the Year | - | - | - | 1,082 |
| At End of Year | - | - | - | - |
| Carrying Amount | ||||
| At Start of Year | 9,000 | - | 9,000 | 9,311 |
| At End of Year | 9,000 | - | 9,000 | 9,000 |
12 STOCKS
Remaining compact disks have been fully written off. There are no other items in stock.
13 DEBTORS
| 31-Dec-20 31-Dec-19 £ £ |
31-Dec-20 31-Dec-19 £ £ |
31-Dec-20 31-Dec-19 £ £ |
|---|---|---|
| Tax Claims & Tax Reliefs | 16,857 | - |
| Trade Debtors | 5,667 | 10,700 |
| Prepayments & Accrued Income | - | 48,902 |
| Amounts Falling Due within 1 Year | 22,524 | 59,602 |
14 CREDITORS FALLING DUE WITHIN 1 YEAR
| 31-Dec-20 31-Dec-19 £ £ |
31-Dec-20 31-Dec-19 £ £ |
31-Dec-20 31-Dec-19 £ £ |
|---|---|---|
| Taxation & Social Security | - | - |
| Staff Fees | (1,540) | (82) |
| Other Suppliers | (22,127) | (23,407) |
| Amounts Falling Due within 1 Year | (23,667) | (23,489) |
- 18 -
LA NUOVA MUSICA
NOTES TO THE FINANCIAL STATEMENTS – CONTINUED - FOR THE YEAR ENDED 31 DECEMBER 2020
15 CREDITORS FALLING DUE AFTER 1 YEAR
| 31-Dec-20 31-Dec-19 £ £ |
31-Dec-20 31-Dec-19 £ £ |
31-Dec-20 31-Dec-19 £ £ |
|---|---|---|
| Amounts Falling Due after 1 Year | (12,978) | (12,978) |
Creditors due after more than 1 year comprise a loan of £12,978 [2019 - £12,978] from the Artistic Director David Bates. The Board of Trustees and the lender have agreed that the repayment of this loan will be postponed until after the creation of a sufficient reserve from unrestricted funds, and any amount to be repaid will be linked to that reserve.
16 RESTRICTED FUNDS
The income funds of the Charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes.
| 2020 2020 |
2020 2020 |
2020 2020 |
2020 2020 |
2020 2020 |
|---|---|---|---|---|
| 31-Dec-19 Incoming Expended 31-Dec-20 £ £ £ £ |
||||
| Wigmore Hall Concert / Commission | 3,000 | - | (3,000) | - |
| Ariodante: due in 2020 postponed to 2021 | 500 | - | - | 500 |
| Lucrezia | - | 5,000 | (1,880) | 3,120 |
| Unexpended Restricted Funds | 3,500 | 5,000 | (4,880) | 3,620 |
17 ANALYSIS OF NET ASSETS BETWEEN FUNDS
| 31-Dec-20 31-Dec-20 31-Dec-20 31-Dec-19 Unrestricted Restricted Total Total £ £ £ £ |
31-Dec-20 31-Dec-20 31-Dec-20 31-Dec-19 Unrestricted Restricted Total Total £ £ £ £ |
31-Dec-20 31-Dec-20 31-Dec-20 31-Dec-19 Unrestricted Restricted Total Total £ £ £ £ |
31-Dec-20 31-Dec-20 31-Dec-20 31-Dec-19 Unrestricted Restricted Total Total £ £ £ £ |
31-Dec-20 31-Dec-20 31-Dec-20 31-Dec-19 Unrestricted Restricted Total Total £ £ £ £ |
|---|---|---|---|---|
| Intangible Fixed Assets | 2,642 | - | 2,642 | 2,917 |
| Tangible Assets | 9,000 | - | 9,000 | 9,000 |
| Net Current Assets / (Liabilities) | 50,685 | 3,620 | 54,305 | 91,964 |
| Long Term Laibilities | (12,978) | - | (12,978) | (12,978) |
| Total Funds | 49,349 | 3,620 | 52,969 | 90,903 |
- 19 -