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2021-03-31-accounts

Company no. 8310735 Charity no. 1150174

Barnet Education Arts Trust Report and Audited Financial Statements 31 March 2021

Barnet Education Arts Trust

Reference and administrative details

For theyear ended 31 March 2021 For theyear ended 31 March 2021
Company number 8310735
Charity number 1150174
Registered office and Barnet Music Hub
operational address Dollis Primary School
Pursley Road
London
NW7 2BU
Trustees Trustees, who are also directors under company law, who served during
the year and up to the date of this report were as follows:
Martin Baker Chair
Jayne Barnes appointed 12 October 2020
Tim Clark
Katie Dawbarn appointed 19 May 2020
Colin Dowland
Philip Elgar
Neil Marlow
Joann Moore
Helen Morrison resigned 20 May 2020
Mary Musker
Patrick Richmond
Peter White
Chief executive officer Sharon Broughall
Company secretary Smiljana Kadelburg
Bankers The Co-operative Bank
80 Cornhill
London
EC3V 3NJ
ME19 4JQ
Auditors Godfrey Wilson Limited
Chartered accountants and statutory auditors
5th Floor Mariner House
62 Prince Street
Bristol
BS1 4QD
Solicitors Vincent, French and Browne Solicitors
Rugby Chambers
2 Rugby Street
London
WC1N 3QU

1

Barnet Education Arts Trust

Report of the trustees

For the year ended 31 March 2021

The trustees present their report and the audited financial statements for the year ended 31 March 2021.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

Structure, governance and management

Legal status, date of incorporation and date of charity registration

This charitable company limited by guarantee was incorporated on 28th November 2012. Charitable registration was completed on 13th December 2012.

The governing document is the articles of association agreed on 28 November 2012.

Trustees are appointed and recruited by the board by advertisement and interview. Upon selection they are required to complete a satisfactory DBS check. At present there are two Local Authority trustees (to represent the needs of the local community), one Primary School Head Teacher, one Advisory Teacher for inclusion, one ex schools’ inspector, Secondary Head of Music, three parents, and an ex-Director of Children’s Services.

Trustees are inducted at their first meeting and then mentored by existing trustees at committee meetings.

Organisational structure

The CEO is responsible for the day to day running of the organisation and line manages three directors and one manager, the company secretary and 4 administrative staff. There are a further 68 teaching staff and line management responsibilities for them are shared among the senior staff.

Strategic decisions are made by the Board of Trustees as to the direction of the work carried out by BEAT and the use of charitable funds. There is a chairman and a number of committees with differing membership to support the work of the CEO and the senior leadership team of the organisation. These committees will usually report back to the board before any decisions are taken.

The CEO will take decisions on a day to day basis and refer to the chairman when appropriate. There is a company secretary who is responsible for preparing the accounts and reporting to the Trustees at quarterly meetings.

BEAT is a member of Music Mark, the federation supporting the work of music hubs.

Partnerships

There are a number of key partners at any one time. The most significant of these is with Arts Council England which monitors the work of all music hubs and releases the music education grant to them on receipt of any required data and reporting.

Music partners in 2020-2021 have included the Live Music Now, Charanga, English Folk Dance and Song Society, and London Music Fund.

2

Barnet Education Arts Trust

Report of the trustees

For the year ended 31 March 2021

BEAT has strong partnerships with schools and works with and in nearly all schools in the London Borough of Barnet.

Pay policy

The pay of all senior and teaching staff mirrors the Teachers’ Pay and Conditions Document. Administrative staff are given the same percentage pay rises as teaching staff. The CEO pay point is decided by trustees at performance management meetings and falls into a seven point scale on the leadership scale for Head Teachers and senior leaders in schools. Other senior managers’ pay is decided by the CEO. Their pay will always fall within a range of leadership scale pay points at least 5 points apart from the CEO pay.

Our strategic objectives

BEAT’s vision remains in line with our current 3 year strategic plan, to offer high quality, diverse, sustainable music education opportunities for all children and young people. We strive to ensure that opportunities are available regardless of a young person’s background or circumstances and that those reaping the benefits represent the varied demographic of the borough. We serve music education to all young people in Barnet. We aim to support and enhance the music curriculum in schools, as well as providing progression opportunities for young musicians in the community.

The Board of Trustees has reflected that the new environment only emphasises the importance of our purpose in helping ensure that we retain and strengthen the bond between us and all our stakeholders and encourage the development of a more resilient hub, better able to serve the needs of the community.

The pandemic continues to have a major impact on the organisation, placing great strain on its sources of income. With the imminent end of the furlough scheme, staff wages will be substantially reduced, taking some time to reach previous levels before Covid. The long term impact is still not clear and may not be for some time, being dependent on any future Lockdowns being enforced and the speed of our recovery. There remain significant challenges ahead in re-establishing all our provisions and in adapting to new ways of working and continuing to develop our current flexible and blended approach.

The main priorities for 2020 - 2021, in line with our Business Stabilisation plan, were:

Governance and management

The Board of Trustees have continued to meet frequently, to better keep abreast of key issues such as cash flow, staffing levels, the job retention scheme, changing government guidelines for schools and music making and teaching remotely. The finance sub-committee has been meeting monthly to keep the finances under regular review.

Trustees to:

3

Barnet Education Arts Trust

Report of the trustees

For the year ended 31 March 2021

Management, senior management team to:

Workforce, retention of staff

It has remained a priority of BEAT to continue to retain staff jobs and BEAT has taken advantage of the continued Government support package.

Programme of activity

We have aimed to promote a strong programme of activity which aimed to be innovative and flexible so we could keep music alive for our young people whilst meeting the ongoing challenges posed by the COVID-19 pandemic. Further details below provide a summary of what happened and key achievements.

4

Barnet Education Arts Trust

Report of the trustees

For the year ended 31 March 2021

Unfortunately, our gala performance at the Royal Albert Hall on 30th April 2020 was sadly cancelled due to COVID-19.

At present BEAT provides opportunities in music education for all young people in Barnet. This includes providing musicians and teachers to work with young people in schools and elsewhere. This includes providing lessons, performance opportunities, workshops and ensembles for these young people to play in. The musicians and teachers provided are also offered training opportunities to develop their own skills.

The public benefit is that young people will develop their social and cultural skills through participating in these activities. The families of these young people will also benefit from the cultural events they may attend that the young people are taking part in. The trustees are mindful of the importance of public benefit that the organisation brings and there is always an item on the board meetings agenda for the use of raised monies. The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives for the year.

COVID-19 recovery

We remain in unchartered waters and are continually reviewing our direction of travel. We are planning and actively working towards a full return to all our partner schools in September, reestablishing our Music Academies and looking ahead to providing opportunities that reflect the current needs of our young people.

There will be a need to understand that COVID-19 has brought about changes we could never have imagined and it is likely that the needs and demands of parents, schools and the local community will have changed. Regenerating demand from all stakeholders, though close and regular contact, will remain a high priority for BEAT during this time, particularly those in the most disadvantaged of circumstances.

Currently, we do not know what the future holds but it is important that we acknowledge the challenges that we have faced but also to recognise the combined efforts that we, together, have enacted to overcome these challenges.

BEAT will seek to promote and enable better access for all young people by bringing further flexibility in the services it offers and taking the strongest steps to ensure financial viability. This will mean a revision of some provisions i.e. BEAT Music Academies, in order for these to remain competitive and ensure our provision continues to be affordable and of a high quality. Trends which were already emerging prior to the crisis - reduced membership of our ensembles are likely to be more evident.

5

Barnet Education Arts Trust

Report of the trustees

For the year ended 31 March 2021

BEAT will deliver a long-term approach, be innovative and flexible and incorporate our new found digital techniques into our future provision and delivery.

Fundraising

Annual statements about fundraising

The main fundraising activities during 2020-2021 were for:

Fundraising results for 2020-2021

draising results for 2020-2021
Total
Commission from Amazon, Virgin, Allianze, ETC
Tesco bags
Schools and individuals		 5,322
1,000
395
6,717

Financial review

Reserves policy

The reserves policy states that the BEAT reserves should be between 10% and 15% of total expenditure. This would represent a sum between £200K and £300K.

BEAT successfully applied for the government Culture Recovery Fund grant and received a sum of £300,000 which has been used, at this stage to boost the reserves.

It has been necessary to deposit a part of BEAT’s reserves (£78,437), into a separate account as a guarantee for teachers’ pensions. Without this amount the Teachers’ Pensions would not allow BEAT teachers to remain in the Teachers’ Pension Scheme.

Main sources of funding

The main source of funds this year came from Government grants (67.5%). These included the Arts Council’s Music Education grant (26% of turnover), Culture Recovery Fund grant (15% of turnover) and Job Retention Scheme grant and Teachers’ Pension increase support grant (25% of turnover). BEAT’s usual income from charging parents and schools for lessons is down this year to 32.5% of turnover.

Expenditure

81% of expenditure has been spent on maintaining Teachers’ pay, delivering music tuition, performances or rehearsals – this is identified in direct costs.

6

Barnet Education Arts Trust

Report of the trustees

For the year ended 31 March 2021

Future aims

Barnet Education Arts Trust is committed to providing a flexible, professional service that offers value for money. No profit is made from the services we offer and all charges are based on the cost for delivery. BEAT’s regular cash flow depends significantly on income from schools and from parents, and this income has become financially unstable since March 2020 and remains critically low. The largest percentage of costs come from staff. Furloughing has provided a temporary cushion but with the increase of costs and the end of the scheme in May 2021 staff will be facing a reduction in their contracted teaching hours.

The Cultural Recovery Fund grant has allowed us to replenish our reserves and given more financial stability over the coming months. This money will enable us to kick start activities once restriction have been lifted and offer support to staff as they embark on our summer recruitment drive.

The biggest and real problem will come next academic year with the removal of the government support schemes. At this stage we have no confirmation the Music Education Hubs grant will continue post March 2022.

Funds held as custodian trustee on behalf of others

None.

Risk statement

Identified risks

  1. Insufficient numbers of trustees willing to be members of the board.

Risk level - Low

This is a popular organisation and the articles of association provide that all trustees will remain in post for sufficient time to ensure that not all will resign from post at the same time.

  1. Lack of appropriate knowledge / expertise in board members.

Risk level - Medium

The makeup of the board ensures that sufficient trustees are appointed with knowledge of the music education and arts sector. There is a vacancy at present for a trustee with financial background – the board are actively trying to recruit such a member.

  1. Financial risk caused by the growth of the school population and the subsequent increase in demand for the remission of fees and free whole class tuition.

Risk level - Medium

There is an increase in the grant this year from the Arts Council which will cover the increase in demand. The CEO and Company Secretary will both monitor on a monthly basis the increase in demand and any subsequent financial implications and will take measures to reduce this if necessary. These could include limiting the number of available remissions, asking schools to contribute to these remissions and also asking schools to contribute to the cost of the whole class instrumental tuition programme.

7

Barnet Education Arts Trust

Report of the trustees

For the year ended 31 March 2021

  1. The Music Education Grant not continuing beyond March 2022.

Risk level - High

The impact of this is that BEAT would not be able to sustain the present level of activity which would have implications on staffing and the musical offer to young people.

  1. The London Borough of Barnet not extending the guarantee for the Local Government Pension Scheme (LGPS) Deficit.

Risk level – High

When employees from the London Borough of Barnet were TUPE’d across to BEAT there were two part time employees in the LGPS. One has since retired and the second, who remains in the scheme, is not due to retire for another 17 years. in 2018 the actuary from the London Borough of Barnet assessed the deficit as at least £40,000. The London Borough of issued a Bond Renewal Agreement on 27 June 2019 continuing to be a guarantor until 30 November 2021. The sum guaranteed is £48,000. There has been a further actuarial valuation of the scheme increasing the liability to £76,000. We are currently in discussion with the London Borough of Barnet to continue to renew the bond for the next three year period.

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity 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, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (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 charity and of the income and expenditure of the charity for that period. In preparing those financial statements the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees 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.

In so far as the trustees are aware:

8

Barnet Education Arts Trust

Report of the trustees

For the year ended 31 March 2021

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

Members of the charity guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up. The total of such guarantees at 31 March 2021 was £100. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditors

Godfrey Wilson Limited were re-appointed as auditors to the charitable company during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 12 October 2021 and signed on their behalf by

Martin Baker - Chair

9

Independent auditors' report

To the members of

Barnet Education Arts Trust

Opinion

We have audited the financial statements of Barnet Education Arts Trust (the 'charity') for the year ended 31 March 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and the related 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 the charity 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 when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. 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.

10

Independent auditors' report

To the members of

Barnet Education Arts Trust

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.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity 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 trustees’ responsibilities statement set out in the trustees’ report, 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 they 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 the charity’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 charity or to cease operations, or have no realistic alternative but to do so.

Our 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.

11

Independent auditors' report

To the members of

Barnet Education Arts Trust

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 procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:

▪Testing the appropriateness of journal entries;

▪Testing transactions that are unusual or outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

12

Independent auditors' report

To the members of

Barnet Education Arts Trust

Use of our report

This report is made solely to the charityʼs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charityʼs members those matters we are required to state to them in an auditorʼs 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 charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

Date: 12 October 2021

Rob Wilson FCA (Senior Statutory Auditor)

For and on behalf of:

GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

13

Barnet Education Arts Trust

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

Restricted
Note
£
Income from:
Donations and legacies
3
-
Charitable activities
4
607,172
Investments
-
Total income
607,172
Expenditure on:
Raising funds
-
Charitable activities
607,172
Total expenditure
6
607,172
7
-
Reconciliation of funds:
Total funds brought forward
12,961
Total funds carried forward
12,961
Net income and net movement in
funds		 Unrestricted
£
721,044
629,177
331
1,350,552
12,416
994,259
1,006,675
343,877
187,018
530,895		 2021
Total
£
721,044
1,236,349
331
1,957,724
12,416
1,601,431
1,613,847
343,877
199,979
543,856		 2020
Total
£
50,741
2,077,563
368
2,128,672
11,943
2,055,666
2,067,609
61,063
138,916
199,979

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 15 to the accounts.

14

Barnet Education Arts Trust

Balance sheet

As at 31 March 2021

Note
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
12
Net current assets
Net assets
14
Funds
15
Restricted funds
Unrestricted funds:
Designated funds
General funds
Total charity funds		 £
91,612
678,630
770,242
(227,694)		 2021
£
1,308
542,548
543,856
12,961
78,437
452,458
543,856		 2020
£
3,855
103,960
383,471
487,431
(291,307)
196,124
199,979
12,961
78,437
108,581
199,979

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 12 October 2021 and signed on their behalf by

Martin Baker - Chair

15

Barnet Education Arts Trust

Statement of cash flows

For the year ended 31 March 2021

Cash used in operating activities:
Net movement in funds
Adjustments for:
Depreciation charges
Interest received
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash provided by operating activities
Cash flows from investing activities:
Interest received
Net cash used in investing activities
Increase in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
343,877
2,547
(331)
12,348
(63,613)
294,828
331
331
295,159
383,471
678,630		 2020
£
61,063
4,487
(368)
(32,528)
(22,843)
9,811
368
368
10,179
373,292
383,471

The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.

16

Barnet Education Arts Trust

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies

a) Basis of preparation

Barnet Education Arts Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b) Going concern basis of accounting

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of provision of music lessons, instrument hire or for future events is deferred until criteria for income recognition are met.

d) Interest receivable

e) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

17

Barnet Education Arts Trust

Notes to the financial statements

For the year ended 31 March 2021

f) Expenditure and irrecoverable VAT

Expenditure and recognised once there is a legal or constructive obligation to make a payment to a third party, it is probably that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

g) Allocation of support and governance costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated in full to expenditure on charitable activities which is deemed to be reflective of the activities of the charity in this period.

h) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows: All fixed assets 4 years Assets used in a restricted project Over the life of the funding of the project

Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

i) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

j) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

k) Financial instruments

The charity 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 recognised at amortised cost using the effective interest method.

l) Defined contribution pension scheme

The charitable company operates a defined contribution pension scheme for 2 of its employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. Pension costs charged in the financial statements represent the contributions payable by the charitable company during the year.

18

Barnet Education Arts Trust

Notes to the financial statements

For the year ended 31 March 2021

m) Defined benefit pension schemes treated as defined contribution pension schemes Teachers' Pension Scheme

The charity makes pension contributions to the Teachers Pension Scheme which is a contracted out, unfunded, defined benefit occupational pension scheme operated by the Department for Education. Contributions to the scheme by employers and employees are set at rates determined by the Secretary of State. The scheme's payments are partially funded by the employer and employee contributions, the balance of funding being provided by Parliament through the annual Supply Estimates process. The scheme's administrative expenses are bourne by the Department for Education.

The scheme has in excess of 3,700 participating employers and consequently the charity is not able to identify its share of the underlying financial position and performance of the scheme with sufficient reliability for accounting purposes. For the purposes of these financial statements, it is therefore accounted for on the same basis as a defined contribution scheme.

Local Government Pension Scheme

Barnet Education Arts Trust (BEAT) operates the services previously offered by Barnet Music Service, which was part of the local authority of The London Borough of Barnet. The assets and liabilities of the Barnet Music Service were transferred to BEAT in February 2013, including all staff of the service and responsibility for their pension schemes.

BEAT now participates in the Local Government Pension Scheme (LGPS), the scheme manager/administering authority being the London Borough of Barnet. The charity makes pension contributions for 1 employee who was previously employed by the Barnet Music Service. The scheme is closed to new members. This scheme is a funded defined benefit final salary scheme, meaning that the charity and employees pay contributions into a fund, calculated at a level intended to balance the pensions liabilities with investment assets.

The charity has not recognised any provision with respect to this scheme as any deficit in respect of BEAT's employee and employer contributions has been guaranteed by the London Borough of Barnet up to 30 November 2021. A bond has been provided by The London Borough of Barnet of up to £76,000, which is the amount actuarially assessed in June 2020 to meet the shortfall. For the purposes of these financial statements, the scheme is therefore accounted for on the same basis as a defined contribution scheme.

19

Barnet Education Arts Trust

Notes to the financial statements

For the year ended 31 March 2021

n) Accounting estimates and key judgements

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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Depreciation

As described in note 1h to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.

2. Prior period comparatives: statement of financial activities

Income from:
Donations and legacies
Charitable activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income and net movement in funds		 Restricted
£
£
12,961
37,780
575,618
1,501,945
-
368
588,579
1,540,093
-
11,943
575,618
1,480,048
575,618
1,491,991
12,961
48,102
Unrestricted		 2020
Total
£
50,741
2,077,563
368
2,128,672
11,943
2,055,666
2,067,609
61,063

20

Barnet Education Arts Trust

Notes to the financial statements

For the year ended 31 March 2021

3. Income from donations and legacies

3.
Income from donations and legacies
Coronavirus Job Retention Scheme
Arts Council England - Cultural Recovery Fund
Donations
Prior period comparative:
Donations
4.
Income from charitable activities
Grants and service level agreements
Arts Council Funding - Music Education Hubs
London Music Fund
John Lyon's Charity
Arts Council Funding - Teacher's Pension Contributions
Total grants and service level agreements
Course contributions and other income
Schools income
Individual instrument tuition
A level music
Events
Instrument hire
Total course contributions and other income
Total income from charitable activities		 Restricted
£
£
-
414,327
-
300,000
-
6,717
-
721,044
Restricted
£
£
12,961
37,780
Restricted
£
£
514,216
-
4,851
-
6,500
-
81,605
-
607,172
-
-
99,851
-
424,660
-
48,126
-
45,460
-
11,080
-
629,177
607,172
629,177
Unrestricted
Unrestricted
Unrestricted		 2021
Total
£
414,327
300,000
6,717
721,044
2020
Total
£
50,741
2021
Total
£
514,216
4,851
6,500
81,605
607,172
99,851
424,660
48,126
45,460
11,080
629,177
1,236,349

21

Barnet Education Arts Trust

Notes to the financial statements

For the year ended 31 March 2021

4.
Income from charitable activities (continued)
Prior period comparative:
Grants and service level agreements
Arts Council Funding - Music Education Hubs
London Music Fund
John Lyon's Charity
Arts Council Funding - Teacher's Pension Contributions
Total grants and service level agreements
Course contributions and other income
Schools income
Individual instrument tuition
Music centres / activities
A level music
Events
Instrument hire
Total course contributions and other income
Total income from charitable activities		 Restricted
£
£
512,385
-
5,630
-
10,000
-
47,603
-
575,618
-
-
650,017
-
592,583
-
89,915
-
57,796
-
92,505
19,129
-
1,501,945
575,618
1,501,945
Unrestricted		 2020
Total
£
512,385
5,630
10,000
47,603
575,618
650,017
592,583
89,915
57,796
92,505
19,129
1,501,945
2,077,563

22

Barnet Education Arts Trust

Notes to the financial statements

For the year ended 31 March 2021

5. Government grants

6. Total expenditure

Total expenditure
Music lessons and events
Instruments and music
Music teachers (note 8)
Teacher training
External trainers and musicians
Educational partners
Venue hire
Subscriptions
Administrative costs
Printing, postage and stationery
Telecoms and computer
Equipment hire
Premises expenses
Insurance
Bank charges
Payroll and human resources
Staff (note 8)
Professional fees
Depreciation
Sub-total
Total expenditure
Allocation of support and governance costs		 Raising
funds
£
-
12,416
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12,416
-
12,416		 Charitable
activities
£
£
8,162
-
1,286,996
-
3,094
-
221
-
9,232
-
1,037
-
3,546
-
-
1,940
-
16,492
-
1,608
-
13,367
-
14,063
-
7,053
-
9,749
-
212,861
-
9,463
-
2,547
1,312,288
289,143
289,143
(289,143)
1,601,431
-
Support and
governance
costs		 2021
Total
£
8,162
1,299,412
3,094
221
9,232
1,037
3,546
1,940
16,492
1,608
13,367
14,063
7,053
9,749
212,861
9,463
2,547
1,613,847
-
1,613,847

Total governance costs were £9,463 (2020: £10,226).

23

Barnet Education Arts Trust

Notes to the financial statements

For the year ended 31 March 2021

6. Total expenditure (continued) Prior period comparative:

Total expenditure (continued)
Prior period comparative:
Music lessons and events
Instruments and music
Music teachers (note 8)
Teacher training
External trainers and musicians
Educational partners
Events
Venue hire
Subscriptions
Administrative costs
Printing, postage and stationery
Telecoms and computer
Equipment hire
Premises expenses
Insurance
Bank charges
Payroll and human resources
Training and conferences
Staff (note 8)
Professional fees
Depreciation
Sub-total
Total expenditure
Allocation of support and governance costs		 Raising
funds
£
-
11,943
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11,943
-
11,943		 Charitable
activities
£
£
6,185
-
1,588,874
-
2,788
-
23,342
-
9,593
-
73,490
-
27,171
-
1,032
-
-
5,125
-
17,592
-
1,888
-
31,045
-
14,417
-
12,937
-
10,716
-
90
-
214,068
-
10,826
-
4,487
1,732,475
323,191
323,191
(323,191)
2,055,666
-
Support and
governance
costs		 2020
Total
£
6,185
1,600,817
2,788
23,342
9,593
73,490
27,171
1,032
5,125
17,592
1,888
31,045
14,417
12,937
10,716
90
214,068
10,826
4,487
2,067,609
-
2,067,609

24

Barnet Education Arts Trust

Notes to the financial statements

For the year ended 31 March 2021

7. Net movement in funds

This is stated after charging:

Depreciation
Trustees' reimbursed expenses
Trustees' remuneration
Auditors' remuneration:
Statutory audit (including VAT)
Other services
Operating lease rentals		 2021
£
2,547
Nil
Nil
8,460
930
5,920		 2020
£
4,487
Nil
Nil
8,160
870
21,553

8. Staff costs and numbers Staff costs were as follows:

Teachers wages
Teachers social security
Teachers pension
Self employed teachers
Staff wages
Staff social security
Staff pension		 2021
£
950,378
55,043
194,911
99,080
1,299,412
162,559
15,593
34,709
1,512,273		 2020
£
1,138,758
73,967
211,850
176,242
1,600,817
166,551
15,515
32,002
1,814,885

One employee earned received employee benefits (excluding employer pension costs) of between £60,000 and £70,000 during the year (2020 - one).

The key management personnel of the charity comprise the Chief Executive Officer and the three Directors of Standards and Excellence. The total employee benefits of the key management personnel of the charity were £221,217 (2020: £174,822).

Average head count during the year 2021
No.
86		 2020
No.
96

25

Barnet Education Arts Trust

Notes to the financial statements

For the year ended 31 March 2021

9. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

10. Tangible fixed assets

£
Cost
At 1 April 2020 and at 31 March 2021
25,331
Depreciation
At 1 April 2020
22,810
Charge for the year
1,802
At 31 March 2021
24,612
Net book value
At 31 March 2021
719
At 31 March 2020
2,521
Debtors
Trade debtors
Prepayments
Accrued income
Creditors : amounts due within 1 year
Trade creditors
Accruals
PAYE and social security
Deferred income (note 13)
Other creditors
Musical
instruments		 £
11,846
10,512
745
11,257
589
1,334
2021
£
24,291
14,636
52,685
91,612
2021
£
12,292
10,585
22,448
153,902
28,467
227,694
Computer
equipment		 Total
£
37,177
33,322
2,547
35,869
1,308
3,855
2020
£
68,008
35,952
-
103,960
2020
£
10,791
12,091
25,088
194,347
48,990
291,307

11. Debtors

12. Creditors : amounts due within 1 year

26

Barnet Education Arts Trust

Notes to the financial statements

For the year ended 31 March 2021

13. Deferred income

Deferred income
At 1 April 2020
Amounts deferred during the year
Amounts released during the year
At 31 March 2021		 2021
£
194,347
153,902
(194,347)
153,902		 2020
£
240,759
194,347
(240,759)
194,347

Deferred income relates to music lessons, instrument hire and events income which has been invoiced for in advance.

14. Analysis of net assets between funds

Analysis of net assets between funds
Tangible fixed assets
Current assets
Current liabilities
Net assets at 31 March 2021
Prior period comparative
Tangible fixed assets
Current assets
Current liabilities
Net assets at 31 March 2020		 Restricted
funds
£
-
12,961
-
12,961
Restricted
funds
£
-
12,961
-
12,961		 Designated
funds
£
-
78,437
-
78,437
Designated
funds
£
-
78,437
-
78,437		 General
funds
£
1,308
678,844
(227,694)
452,458
General
funds
£
3,855
396,033
(291,307)
108,581		 Total
funds
£
1,308
770,242
(227,694)
543,856
Total
funds
£
3,855
487,431
(291,307)
199,979

27

Barnet Education Arts Trust

Notes to the financial statements

For the year ended 31 March 2021

15. Movements in funds

Restricted funds
Arts Council Funding - Music Education Hubs
London Music Fund
John Lyon's Foundation
Royal Albert Hall Concert
Total restricted funds
Designated funds
Teachers' Pensions
Total designated funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds
Arts Council Funding - Teacher's Pension
Contributions		 At 1 April
2020
£
-
-
-
12,961
-
12,961
78,437
78,437
108,581
187,018
199,979		 Income
£
514,216
4,851
6,500
-
81,605
607,172
-
-
1,350,552
1,350,552
1,957,724		 £
(514,216)
(4,851)
(6,500)
-
(81,605)
(607,172)
-
-
(1,006,675)
(1,006,675)
(1,613,847)
Expenditure		 £
-
-
-
12,961
-
At 31 March
2021
12,961
78,437
78,437
452,458
530,895
543,856

Purposes of restricted funds

Arts Council Funding - Music Education Hubs

The Music Education grant is awarded following a written submission to the Arts Council as to the activities which will be provided. This written submission can be found on the Arts Council website - all activities undertaken are reported directly to the Arts Council on a quarterly basis. The purpose of the grant is to provide music education activities to young people attending school in or living in the London Borough of Barnet.

London Music Fund

This grant is to provide music scholarships for named children agreed by the office of the Mayor's fund for Music Education. The scholarships provide for the cost of music tuition on one instrument and ensemble provision for each child named.

John Lyon's Foundation

This grant is to provide music scholarships, providing for the cost of music tuition on one instrument and ensemble provision for each child named.

Royal Albert Hall Concert

£12,961 of donations during 2019-20 were explicitly collected to support Royal Albert Hall event. As it had to be cancelled due to COVID-19 these funds will remain restricted.

28

Barnet Education Arts Trust

Notes to the financial statements

For the year ended 31 March 2021

15. Movements in funds (continued)

Purposes of restricted funds (continued)

Arts Council Funding - Teacher's Pension Contributions

This grant is awarded towards Music Education Hubs' Teachers Pension contributions for 2020-21. It is allocated by the Department for Education in recognition of the increase of employers' pension contributions from September 2019.

Purposes of designated funds

Teachers' Pensions

This designated fund represents funds placed on deposit as a guarantee for teachers’ pensions. Without this amount the Teachers’ Pensions organisation would not allow BEAT teachers to remain in the Teachers’ Pension Scheme.

Prior period comparatives
At 1 April
2019
£
Restricted funds
Arts Council Funding - Music Education Hubs
-
London Music Fund
-
John Lyon's Foundation
-
Royal Albert Hall Concert
-
-
Total restricted funds
-
Designated funds
Teachers' Pensions
78,437
Total designated funds
78,437
General funds
60,479
Total unrestricted funds
138,916
Total funds
138,916
Unrestricted funds
Arts Council Funding - Teacher's Pension
Contributions		 Income
£
512,385
5,630
10,000
12,961
47,603
588,579
-
-
1,540,093
1,540,093
2,128,672		 Expenditure
£
(512,385)
(5,630)
(10,000)
-
(47,603)
(575,618)
-
-
(1,491,991)
(1,491,991)
(2,067,609)		 £
-
-
-
12,961
-
At 31 March
2020
12,961
78,437
78,437
108,581
187,018
199,979

29

Barnet Education Arts Trust

Notes to the financial statements

For the year ended 31 March 2021

16. Operating lease rentals

The charity had operating leases at the year end with total future minimum lease payments as follows:

Amount falling due:
Within 1 year
Within 1 - 5 years		 2021
£
22,000
34,375
56,375		 2020
£
5,920
3,717
9,637

17. Related party transactions

Katie Dawbarn, trustee, is also a senior employee of Dollis Primary School. BEAT made payments in respect of office rental during the year of £9,567 (2020: £21,581).

30