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2021-08-31-accounts

Charity Registration No. 1152703

Company Registration No. 08524556 (England and Wales)

WEST SUSSEX MUSIC TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

WEST SUSSEX MUSIC TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr L C Nettley
Mr T M Riches
Dr C Guillaumier
Mrs E M Evans
Secretary Mr J G Underwood
Charity number 1152703
Company number 08524556
Registered office Herbert Shiner School
South Grove
Petworth
West Sussex
GU28 0EE
Auditor Carpenter Box
Amelia House
Crescent Road
Worthing
West Sussex
BN11 1RL
Bankers Clydesdale Bank Plc
5 Peveril Court
6-8 London Road
Crawley
RH10 8JE

WEST SUSSEX MUSIC TRUST

CONTENTS

Page
Trustees' report 1 - 6
Statement of trustees' responsibilities 7
Independent auditor's report 8 - 10
Statement of financial activities 11
Statement of financial position 12
Statement of cash flows 13
Notes to the financial statements 14 - 27

WEST SUSSEX MUSIC TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

The trustees present their report and accounts for the year ended 31 August 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the trust's Articles of Association 2013, the Charities Act 2011, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)” published in October 2019.

Objectives and activities

In accordance with its Articles of Association, West Sussex Music Trust ("the trust") exists to:

The trust provides music education to children and young people and supports 287 schools through an offer of whole-class first access programmes, ensemble opportunities, instrumental and vocal tuition, singing projects, CPD for teachers, instrument loan and large-scale inclusive music events. Additionally, the trust provides a comprehensive range of ensemble, tuition and support activities at its Saturday and evening music centres. The trust extends its reach by leading the West Sussex Music Education Hub; working strategically with Hub partners to raise participation and improve access to high-quality inclusive music-making, especially to disadvantaged and harder to reach young people. The work of the Hub is supported by the Department for Education’s national music education hub grant which is managed by the trust.

Public benefi t

The trustees have paid due regard to guidance issued by the Charity Commission in deciding which activities the trust should undertake.

There is a charge for some of the services provided by the trust but there is a bursary fund for parents/carers in receipt of certain state benefits. The bursary fund uses the Department for Education’s ('DfE') national hub grant to provide up to 100% subsidy for group lessons, instrument hire and music centre membership for pupils that receive benefits-related Free School Meals or are Children in Care.

Families in financial need that do not meet the 100% subsidy criteria are signposted to external grants and funds designed to help children access tuition. Schools are encouraged to use their Pupil Premium funding to support pupils' music education outside the classroom. The trust actively encourages families to consider paying monthly to spread the financial pressure.

Achievements and performance

For much of the 2020-21 academic year, face to face tuition was severely limited due to school closures. Pupil numbers were significantly reduced in comparison with pre-pandemic levels, but the ingenuity and creativity of staff ensured notable achievements during this disrupted and challenging year, such as:

WEST SUSSEX MUSIC TRUST

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

*The Hub Board is a requirement of the Arts Council England (ACE) national funding and was created following ACE-funded consultation work by Golant Innovation.

COVID-19 pandemic

The closure of schools and music centres due to COVID-19 restrictions caused ongoing uncertainty for traded services during the 2020-21 academic year. The Trust made several strategic decisions following expert legal, financial and HR advice to ensure its long-term financial stability.

The furlough scheme supported the wages of salaried teachers unable to deliver face to face tuition.

To support online learning, a new online safeguarding policy was developed for families opting for online provision and adopted by teachers. The trust invested in Zoom pro-licences for hosts of CPD sessions and leaders of virtual ensembles to ensure longer session durations and more functionality. An audit of West Sussex Music teacher’s training needs shaped the CPD programme.

A new SharePoint site, Student Zone, for sharing teaching resources was created to support online learning. Student Zone is a password protected site available to all West Sussex Music teachers and their pupils, where inspirational videos, written repertoire ideas and advice sheets are posted.

WEST SUSSEX MUSIC TRUST

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

A successful bid of £535,845 to the Cultural Recovery Fund (2) ('CRF (2)'), from April to December 2021, gives the Trust and the Hub the best possible start on the road to recovery, stability, and rebuilding music education in West Sussex. The CRF(2) budget has funded:

Financial review

The Trust has two main sources of income, traded income through the provision of music tuition direct to families and schools and the DfE national music education hub grant, administered by Arts Council England.

During the year ending 31 August 2021, total income was £2,247,721 (2020: £3,029,511) which exceeded expenditure of £1,829,765 (2020: £2,731,422) generating an overall surplus of £417,956 (2020: £298,089).

At 31 August 2021 the net book value of fixed assets was £546,433 (2020: £615,115) of which £528,303 (2020: £586,222) was the instrument stock. The assets were used exclusively for providing tuition and associated support services to pupils and schools in West Sussex.

The balance of unrestricted funds at the year end is £938,106 (2020: £526,808).

Restricted funds amount to £32,715 (2020: £26,057) at the year end and a more detailed analysis of these funds are provided in note 19. These relate to funds received for specific purposes that cannot be used for the general objects of the Charity.

Going concern

The measures that management has taken during the COVID-19 crisis – including use of the government’s support for businesses, the organisational restructure, and the award of the Cultural Recovery Grant - have ensured the long-term viability of the trust. The current liquidity that the trust has available to fulfil its obligations and to finance its ongoing operations provides the basis for the trustees’ conclusion that there is not a material uncertainty that may cast significant doubt on the entity’s ability to continue as a going concern.

Reserves policy

The process of holding reserves is an essential part of good financial management practice. Trustees are however, required to justify their legal power to hold reserves.

The trustees of West Sussex Music Trust have determined that there is a need to secure the organisation's viability beyond the immediate future in order to provide reliable music services and funding over the longer term and to be able to absorb downturns in income.

A formula to determine the level of reserves includes:

WEST SUSSEX MUSIC TRUST

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

The level of reserves required is reviewed bi-annually or as necessary to take into account the above formula. Responsibility for approving the annual assessment lies with the trustees. The Chief Executive and Head of Finance report to the trustees every year and make such recommendations for adjusting the reserves as appropriate.

To establish the value of reserves available to trustees known as “free reserves” monies held for specific purposes, including restricted funds and designated by the trustees for particular projects and any monies not available for other uses, must first be deducted. Restricted funds, the use of which is formally restricted by the funder, total £32,71 5 at the reporting date (2020: 26,057).

The policy of the Trust is to keep an operating free reserve with a minimum balance of £340,000 to reflect the above formula after deductions. At the balance sheet date, the operating free reserve at £ 391 , 673 (being unrestricted funds less fixed assets) was greater than the target amount and minimum acceptable balance. At this balance, trustees are confident that they have scope to take action to mitigate emerging risks and invest in sustainable income generation.

This is supported through full cost recovery budgeting, accurate forecasting, and careful treasury management. Any remaining free reserves not required under the reserves policy are available to develop the work of the charity, to meet its charitable objectives.

Principal risks and uncertainties

The trustees have a risk management strategy which comprises of a quarterly review of the risks the charity may face and a review of all procedural policies. During the COVID-19 pandemic, risk assessments have been presented to the Board more regularly. The trustees have assessed the major risks to which the trust is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.

Future plans

The organisational restructure and new operating model have ensured that the trust’s core traded business is now less reliant on national music education hub funding than it was previously. More of the hub’s national grant funding, therefore, is available to extend the music education hub’s range of services, by commissioning provision from strategic hub partners, and offer subsidies that will allow greater access to disadvantaged and harder to reach students.

The trust will rebuild its range of traded services to schools and its music centres by proactively recruiting teachers and associates to build student numbers to pre-pandemic levels of engagement.

Structure, governance and management

West Sussex Music Trust (trading as "West Sussex Music") is a company limited by guarantee with charitable status; it was incorporated on 10 May 2013 and registered with the Charity Commission on 3 July 2013. For over 50 years West Sussex Music (originally known as “West Sussex Music Support Service” and later as "West Sussex Music Service"), was a department within West Sussex County Council. On 1 November 2013, with the full support of West Sussex County Council, music services transferred out of local authority control to the trust. All teaching staff and managers TUPE transferred to West Sussex Music and ownership of the instrument stock transferred to the trust.

The trustees, who are also the directors for the purpose of company law, who served during the year were:

Mr L C Nettley Mr T M Riches Mr E G Rodriguez-Molinero (Resigned 27 April 2021) Dr C Guillaumier Mrs E M Evans Ms K Powell (Resigned 27 April 2021)

WEST SUSSEX MUSIC TRUST

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

The Board of Trustees is responsible for appointing trustees, up to a maximum of nine. New trustees are recruited by recommendation and by utilising the knowledge of existing trustees who have a wide network of contacts in the voluntary and business communities of West Sussex. Potential trustees meet with the Chief Executive, and one other trustee, to find out more about the responsibilities of role. If both sides feel they wish to proceed, the potential trustee is invited to attend a trustees' meeting as an observer. Following that meeting a decision is made whether to invite the individual to become a trustee.

All new trustees join an induction programme designed to familiarise them with the strategy, management and day-to-day activities of West Sussex Music.

The term of office for all trustees shall be no more than three years. Retirement takes effect at the conclusion of the meeting nearest to the trustee’s election anniversary. A trustee shall be eligible for re-election by the trustees, for up to one further term of up to three years. After a trustee has left the Board, they shall be eligible for election only after three years have elapsed since they stepped down as trustee.

At the trustees’ meeting on 27 April 2021 the following trustees retired following their first term of office:

Additionally at the 27 April meeting, the following trustee voluntarily declared their retirement mid-term:

At the trustee’s meeting on 27 April 2021 the following trustee was re-elected for second term of office:

The trustees are responsible for adopting the business plan and annual budget, ensuring that the charitable objects are met and that the business is compliant. None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The management and governance structure of the Trust consists of the Board of Trustees and the Senior Leadership Team. The Board of Trustees meet during the year on a quarterly basis. The Chief Executive and Head of Finance also attend by invitation.

The Senior Leadership Team consists of:

The Senior Leadership Team runs the trust, implementing the policies set by the Board of Trustees and reporting back to them. Budget responsibility has been delegated by trustees to the senior leadership team. The Senior Leadership Team is supported by a wider team of managers and senior teachers with responsibilities for specific areas of core delivery.

Auditor

In accordance with the company's articles, a resolution proposing that Carpenter Box be reappointed as auditor of the company will be put at a General Meeting.

WEST SUSSEX MUSIC TRUST

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

On behalf of the Board of Trustees

Mr L C Nettley Chair of Trustees Dated: 11 January 2022

WEST SUSSEX MUSIC TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 AUGUST 2021

The trustees, who are also the directors of West Sussex Music Trust for the purpose 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 trust and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the trust 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 trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

WEST SUSSEX MUSIC TRUST

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF WEST SUSSEX MUSIC TRUST

Opinion

We have audited the financial statements of West Sussex Music Trust (the ‘trust’) for the year ended 31 August 2021 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice)

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the trust 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 trust’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.

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.

WEST SUSSEX MUSIC TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF WEST SUSSEX MUSIC TRUST

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the trust and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the trustees' r eport.

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 trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the trust for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

WEST SUSSEX MUSIC TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF WEST SUSSEX MUSIC TRUST

As a result of these procedures, we considered the opportunities and incentives that may exist within the trust for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: employment law; and, compliance with the UK Companies Act and UK Charities Act.

In addition to the above, our procedures to respond to risks identified included the following:

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

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

This report is made solely to the charitable company's 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 charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Robin Evans BA FCA CTA (Senior Statutory Auditor) for and on behalf of Carpenter Box 25 January 2022 Chartered Accountants Statutory Auditor Worthing

WEST SUSSEX MUSIC TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2021

Unrestricted
Restricted
funds
funds
Notes
£
£
Income and endowments from:
Donations and legacies
3
1,568,750
86,862
Incoming resources from charitable activities
4
581,042
-
Investments
5
-
-
Other income
6
11,067
-
Total income
2,160,859
86,862
Expenditure on:
Charitable activities
7
1,745,820
80,204
Other
3,741
-
Total resources expended
1,749,561
80,204
Net income for the year/
Net movement in funds
411,298
6,658
Fund balances at 1 September 2020
526,808
26,057
Fund balances at 31 August 2021
938,106
32,715		 Total
2021
£
1,655,612
581,042
-
11,067
2,247,721
1,826,024
3,741
1,829,765
417,956
552,865
970,821		 Total
2020
£
1,680,020
1,251,161
72
98,258
3,029,511
2,726,582
4,840
2,731,422
298,089
254,776
552,865

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.

WEST SUSSEX MUSIC TRUST

STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2021

Notes
Fixed assets
Property, plant and equipment
12
Current assets
Trade and other receivables
13
Cash at bank and in hand
Current liabilities
15
Net current assets/(liabilities)
Total assets less current liabilities
Non-current liabilities
16
Net assets
Income funds
Restricted funds
19
Unrestricted funds		 2021
£
27,831
484,989
512,820
(88,432)		 2020
£
£
546,433
197,499
239,395
436,894
(449,144)
424,388
970,821
-
970,821
32,715
938,106
970,821		 £
615,115
(12,250)
602,865
(50,000)
552,865
26,057
526,808
552,865

The financial statements were approved by the Trustees on 11 January 2022

Mr L C Nettley Trustee

Company Registration No. 08524556

WEST SUSSEX MUSIC TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021

Notes
Cash flows from operating activities
Cash generated from operations
23
Investing activities
Purchase of property, plant and equipment
Interest received
Net cash used in investing activities
Financing activities
Proceeds of new bank loans
Repayment of bank loans
Net cash (used in)/generated from
financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
-
-
-
(50,000)		 £
295,594
-
(50,000)
245,594
239,395
484,989		 2020
£
(55,661)
72
50,000
-		 £
253,921
(55,589)
50,000
248,332
(8,937)
239,395

WEST SUSSEX MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

Company information

West Sussex Music Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Herbert Shiner School, South Grove, Petworth, West Sussex, GU28 0EE.

The trust has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

1.1 Accounting convention

These accounts have been prepared in accordance with " Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) " issued on 16 July 2014 , the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006. The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the t rust. Monetary a mounts in these financial statements are rounded to the nearest £ 1.

The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

The financial statements have been prepared on a going concern basis. The trustees have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment.

The COVID-19 pandemic and the ensuing economic shutdown has had a significant impact on the trust's operations. As described in greater detail in the Trustees' Report, the trust developed an online offering for tuition, whole-class ensemble teaching and music centre activities, to blend with face-to-face teaching where possible, and has also taken advantage of the financial assistance available to them, including the government-backed Coronavirus Job Retention Scheme, and the Arts Council England Culture Recovery Fund. The trustees have performed a robust analysis of forecast future cash flows, taking into account the potential impact on the trust of possible future scenarios arising from the impact of COVID-19. This analysis also considers the effectiveness of available measures to assist in mitigating the impact.

Based on these assessments and having regard to the resources available to the entity, the trustees have concluded that there is no material uncertainty in relation to the appropriateness of continuing to adopt the going concern basis in preparing the annual report and accounts.

1.3 Incoming resources

Donations and grants are recognised as incoming resources when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

Income from charitable activities is recognised in the period to which the lesson relates. Where invoiced in advance the appropriate amounts are therefore treated as deferred income.

1.4 Resources expended

Expenditure relating to charitable activities is included in the Statement of Financial Activities on an accruals basis. It includes music teachers' remuneration, travel and room hire costs, inclusive of any irrecoverable VAT.

WEST SUSSEX MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

Governance costs include amounts incurred in respect of the running of the charity as an organisation, including general management, administration, legal and constitutional matters.

Support costs include staff costs incurred to support governance, together with the cost of general management including office costs.

1.5 Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Leasehold improvements Straight line over the term of the lease Instruments 20 years straight line Fixtures, fittings & equipment 3 - 5 years 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.

1.6 Impairment of non-current assets

At each reporting end date, the trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss .

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

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

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

WEST SUSSEX MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

1.8 Financial instruments

The trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the trust 's statement of financial position when the trust becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset , with the net amounts presented in the financial statements , when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

The trust enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable .

1.9 Employee benefits

Termination benefits are recognised immediately as an expense when the trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10 Retirement benefits

Retirement benefits to employees of the t rust are provided by the Teachers' Pension Scheme ('TPS') and the Local Government Pension Scheme ('LGPS'). These are defined benefit schemes and the assets are held separately from those of the t rust.

As a result of the organisational restructure, the trust ceased to contribute to the TPS during the year.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives with the t rust in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective benefit method. As stated in Note 16 , the TPS is a multi-employer scheme and the t rust is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution scheme and the contributions are recognised as they are paid each period.

The LGPS is a funded defined benefit scheme, however it was agreed on transfer that this is to be dealt with on a pass through basis, meaning that County Council underwrite any pension liabilities and therefore this has been accounted for as a defined contribution scheme.

The trust also operates a People's Pension scheme which is a defined contribution pension scheme. Contributions are charged in the accounts as they become payable in accordance with the rules of the scheme.

1.11 Leases

Rentals payable under operating leases are charged to income on a straight line basis over the period of the relevant lease.

1.12 Accumulated funds

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 accounts.

WEST SUSSEX MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

2 Critical accounting estimates and judgements

In the application of the trust’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 periods.

3 Donations and legacies

Unrestricted Restricted Total Total
funds funds 2021 2020
£ £ £ £
Donations and gifts 11,635 1,000 12,635 17,708
Grants receivable for core activities 1,557,115 85,862 1,642,977 1,629,800
Donated goods and services - - - 32,512
1,568,750 86,862 1,655,612 1,680,020
For the year ended 31 August 2021 1,564,353 115,667 1,680,020
Donated goods relate to musical instruments receivable from non-exchange transactions, for use by the
Trust.
Grants receivable for core activities
Arts Council England 1,052,488 - 1,052,488 1,052,239
Arts Council England Culture Recovery Fund 383,196 - 383,196 -
Brighton & Hove Music & Arts - 26,400 26,400 1,047
Redehall Special Needs School - 2,638 2,638 3,000
HMRC (Coronavirus Job Retention Scheme) 121,431 - 121,431 473,273
West Dene Fund - Crawley Sings Live! - - - 3,000
Arts Council England TPS Grant - 56,724 56,724 97,241
Arts Council England Music Centre grant - 100 100 -
1,557,115 85,862 1,642,977 1,629,800

WEST SUSSEX MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

4 Incoming resources from charitable activities
2021 2020
£ £
Music education 581,042 1,251,161
Unrestricted funds 581,042 1,241,073
5 Investments
Total Unrestricted
funds
2021 2020
£ £
Interest receivable - 72
6 Other income
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Other income 11,067 98,258

WEST SUSSEX MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

7 Charitable activities

Staff costs
Depreciation and impairment
Other costs
Grant funding of activities (see note 8)
Share of support costs (see note 9)
Share of governance costs (see note 9)
Analysis by fund
Unrestricted funds
Restricted funds		 2021
£
1,358,385
54,178
75,082
1,487,645
7,105
216,653
114,621
1,826,024
1,745,820
80,204
1,826,024		 2020
£
2,138,694
53,040
244,299
2,436,033
-
158,801
131,748
2,726,582
2,584,664
141,918
2,726,582

8 Grants payable

Music Music
education education
2021 2020
£ £
Grants to individuals 7,105 -
7,105 -

WEST SUSSEX MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

9 Support costs

Support
costs
Governance
costs
£
£
Staff costs
75,837
70,683
Other costs
130,053
43,938
Depreciation and
impairment
10,763
-
216,653
114,621
Analysed between
Charitable activities
216,653
114,621		 2021
£
146,520
173,991
10,763
331,274
331,274		 2020 Basis of allocation
£
151,300 Time spent
132,179 Direct
7,070 Direct
290,549
290,549

Governance costs includes payments to the auditors of £8,500 (2020: £8,075) for audit fees and £2,900 (2020: £2,700) for other services.

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or reimbursed expenses during the year.

WEST SUSSEX MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

11 Employees

Number of employees

The average monthly number of employees during the year was:

Senior Leadership Team
Administration Staff
Permanent Teachers
Hourly Paid Teachers
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
5
9
26
20
60
2021
£
1,257,289
82,254
165,362
1,504,905		 2020
Number
6
12
46
47
111
2020
£
1,835,322
133,629
321,043
2,289,994

During the year, severance payments were made totalling £256,845 (2020 - £Nil), comprising £229,785 redundancy pay and £27,060 pay in lieu of notice; these amounts are included within wages and salaries above.

The number of employees whose annual remuneration was £60,000 or more were:

2021 2020
Number Number
£60,000 - £70,000 1 1

WEST SUSSEX MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

12
Property, plant and equipment
Leasehold
improvements
Instruments
£
£
Cost
At 1 September 2020
15,705
1,083,556
Disposals
-
(8,314)
At 31 August 2021
15,705
1,075,242
Depreciation and impairment
At 1 September 2020
9,071
497,334
Depreciation charged in the year
5,761
54,178
Eliminated in respect of disposals
-
(4,573)
At 31 August 2021
14,832
546,939
Carrying amount
At 31 August 2021
873
528,303
At 31 August 2020
6,634
586,222
13
Trade and other receivables
Amounts falling due within one year:
Trade receivables
Other receivables
Prepayments and accrued income
14
Borrowings
Bank loans
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments		 Fixtures,
fittings &
equipment
£
96,286
-
96,286
74,027
5,002
-
79,029
17,257
22,259
2021
£
19,195
607
8,029
27,831
2021
£
-
-
-		 Total
£
1,195,547
(8,314)
1,187,233
580,432
64,941
(4,573)
640,800
546,433
615,115
2020
£
173,114
966
23,419
197,499
2020
£
50,000
50,000
9,167

WEST SUSSEX MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

15
Current liabilities
Notes
Other taxation and social security
Deferred income
17
Trade payables
Other payables
Accruals and deferred income
16
Non-current liabilities
Notes
Bank loans
14
17
Deferred income
Arising from tuition fees invoiced in advance		 2021
£
12,963
3,707
49,148
5,253
17,361
88,432
2021
£
-
2021
£
3,707		 2020
£
19,184
295,175
71,789
38,882
24,114
449,144
2020
£
50,000
2020
£
295,175

The income deferred in 2020 was released to the current year.

WEST SUSSEX MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

18 Retirement benefit schemes

Defined contribution schemes

Teachers’ Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions Regulations (2010) and, from 1 April 2014, by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic for teachers in part-time employment following appointment or a change of contract, although they are able to opt out of the TPS.

The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis – these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

As a result of the organisational restructure and changes to employee contracts, the trust ceased to contribute to the TPS during the year.

Valuation of the Teachers’ Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019.

The key elements of the valuation and subsequent consultation are:

The next valuation result is due to be implemented from 1 April 2023.

The employer’s pension costs paid to TPS in the period amounted to £116,695 (20 20 : £2 63,746 ).

’ A copy of the valuation report and supporting documentation is on the Teachers Pensions website.

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The trust has accounted for its contributions to the scheme as if it were a defined contribution scheme. The trust has set out above the information available on the scheme.

WEST SUSSEX MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

18 Retirement benefit schemes

(Continued)

Local Government Pension Scheme

The LGPS is a funded defined benefit scheme, it was agreed on transfer that this is to be dealt with on a 'pass through' basis, meaning that County Council underwrite any pension liabilities and therefore this has been accounted for as a defined contribution scheme. The agreed employer contribution rate is 20.8% of pensionable pay. The total contribution made for the year ended 31 August 202 1 was £34,570 (20 20 : £41,131).

Other pension schemes

The trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the trust in an independently administered fund. The charge for the year was £14,098 (20 20 : £16,166).

19 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:

Balance at
1 September
2019

£
Music Centres
26,284
Horsham Council
2,780
Instrument fund
1,137
Accessible Orchestra
10,175
Musical Chairs
63
West Dene Fund
-
Worthing Lions Tour
-
Music Centres
-
Music for All
-
Arts Council England
TPS Grant
-
40,439		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
1 September
2020

£
£
£
£
11,578
(16,446)
-
21,416
2,019
(4,292)
-
507
-
(753)
-
384
3,000
(14,956)
1,781
-
5,517
(5,580)
-
-
3,000
(250)
-
2,750
1,000
-
-
1,000
2,400
(2,400)
-
-
-
-
-
-
97,241
(97,241)
-
-
125,755 (141,918)
1,781
26,057		 Movement in funds
Incoming
resources
Resources
expended
Balance at
31 August
2021
£
£
£
1,100
(8,562) 13,954
-
-
507
-
-
384
26,400
(14,571) 11,829
-
-
-
-
-
2,750
-
-
1,000
-
-
-
2,638
(347)
2,291
56,724
(56,724)
-
86,862
(80,204) 32,715

The Music Centres' income is restricted for the purpose of assisting the five Music Centres, being Worthing, Horsham, Haywards Heath, Chichester and Crawley.

The Horsham Council grant is restricted for the purpose of Horsham Year of Culture.

The instrument fund is restricted to either the purchase of new instruments or the refurbishment of existing instruments from the disposal proceeds of existing instruments.

The Accessible Orchestra Fund is restricted to the teaching and providing of orchestras for all children.

The West Dene Fund is restricted for the "Crawley Sings" event.

WEST SUSSEX MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

19 Restricted funds

(Continued)

The Worthing Lions Tour donation is restricted for use on the Music Centres tour.

The Arts Council England TPS grant is restricted for the purpose of paying for increases in the employer's contributions required to the Teachers Pension Scheme.

The Music for All income is restricted to grants for specific pupils to participate in music lessons.

20 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
August 2021 are
represented by:
Property, plant and equipment
546,433
-
Current assets/(liabilities)
424,388
-
Long term liabilities
-
-
970,821
-		 TotalUnrestricted
funds
Restricted
funds
2021
2020
2020
£
£
£
546,433
615,115
-
424,388
(38,307)
26,057
-
(50,000)
-
970,821
526,808
26,057		 Total
2020
£
615,115
(12,250)
(50,000)
552,865

21 Operating lease commitments

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

Within one year
Between two and five years		 2021
£
3,000
-
3,000		 2020
£
28,000
3,000
31,000

Operating lease payments recognised as an expense during the year totalled £2 8,000 (20 20: £2 0 , 500 ).

During the prior year a rent concession was received in relation to one of the leases held due to COVID-19. This was a five-month rent free period, resulting in a reduction in lease payments of £7,500 during the year ended 31 August 2020.

WEST SUSSEX MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

22 Related party transactions

There were no disclosable related party transactions during the current or previous year.

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2021 2020
£ £
Aggregate compensation 239,958 281,397
23 Cash generated from operations 2021 2020
£ £
Surplus for the year 417,956 298,089
Adjustments for:
Investment income recognised in statement of financial activities - (72)
Loss on disposal of property, plant and equipment 3,741 4,840
Depreciation and impairment of property, plant and equipment 64,941 60,110
Movements in working capital:
Decrease in trade and other receivables 169,668 152,287
(Decrease)/increase in trade and other payables (69,244) 89,564
(Decrease) in deferred income (291,468) (350,897)
Cash generated from operations 295,594 253,921
24 Analysis of changes in net funds
At 1 September Cash flows At 31 August
2020 2021
£ £ £
Cash at bank and in hand 239,395 245,594 484,989
Loans falling due after more than one year (50,000) 50,000 -
189,395 295,594 484,989