REGISTERED COMPANY NUMBER: 08524556 (England and Wales) REGISTERED CHARITY NUMBER: 1152703
REPORT OF THE TRUSTEES AND
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
FOR
WEST SUSSEX MUSIC TRUST
Chariot House Limited Chartered Accountants and Statutory Auditor 44 Grand Parade Brighton BN2 9QA
WEST SUSSEX MUSIC TRUST
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
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Report of the Trustees 1 to 7
Report of the Independent Auditors 8 to 11
Statement of Financial Activities 12
Balance Sheet 13
Cash Flow Statement 14
Notes to the Cash Flow Statement 15
Notes to the Financial Statements 16 to 25
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WEST SUSSEX MUSIC TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
In accordance with its Articles of Association, West Sussex Music Trust exists to:
- advance education for the public benefit particularly, but not exclusively, in relation to the music, arts and performing arts;
- advance the arts and culture for the benefit of the public particularly, but not exclusively, by promoting and facilitating access to performances of music and other art forms;
- provide for the recreation of children, young people and adults for the benefit of the public by providing equipment, facilities and services to them in the interest of social welfare with the object of improving their conditions of life;
- advance the health and wellbeing of children, young people and adults for the benefit of the public;
- promote social inclusion for the public benefit by assisting those people who are socially excluded from society, or parts of society.
The Trust provides music education to children and young people and supports 283 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 benefit
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what 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 DfE's 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 may qualify for a 50% subsidy for families in receipt of other state benefits. Students are also 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.
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WEST SUSSEX MUSIC TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
STRATEGIC REPORT Achievement and performance Charitable activities
During the year 2021-22, the West Sussex Music engagement strategy has focused on the following initiatives to rebuild following the pandemic:
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Tomorrow's Orchestra Programme - a three-term programme of free or low-cost group lessons, ensemble membership and instrument hire based in Chichester, Horsham, and Worthing music centres to bring in new key stage 2 learners. Massed performances alongside the County Youth Orchestra have celebrated the achievements of the 44 TOPs graduates who will progress onto regular music centre ensembles in January 2023.
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A free term of whole-class instrumental learning (WCET) for all Year 4 pupils in Crawley primary schools - an area of lower engagement from schools - resulted in 18 out of 24 schools taking up the offer, with 41 classes and 1,230 pupils involved.
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Our accessible ensemble "Orchestras Inc." moved from online only to a hybrid delivery to enable more participants to benefit from face-to-face sessions.
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A comprehensive CPD programme involved 656 attendees during the year culminated in the West Sussex Music Education Conference on 8 July with 136 delegates at Chichester College.
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Responding to our schools needs analysis we engaged Ensemble Reza and Kidenza to give Live Music performances in schools to support primary to secondary progression routes. 2222 students benefited across 17 schools from this fully funded offer.
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Massed singing events created opportunities for 600 pupils to perform at public venues including The Hawth, Crawley and Chichester Cathedral.
Operationally, the Trust was successful in:
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Rebranding the Trust and Hub identities
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Launching our new website
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Introducing a new customer data management system - SpeedAdmin
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Reviewing and restructuring the management tea
Financial review
Financial position
The Trust has two main sources of income, traded income through the provision of music tuition direct to families and schools and the Department for Education (DfE) national music education hub grant, administered by Arts Council England.
During the year ending 31 August 2022, total income was £1,617,735 which exceeded expenditure of £1,524,710 generating an overall surplus of £93,025.
At 31 August 2022 the net book value of fixed assets was £494,998 of which £476,617 was the instrument assets. 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 £1,050,980.
Restricted funds amount to £12,864 at the year end and a more detailed analysis of these funds are provided in note 17. These relate to funds received for specific purposes that cannot be used for the general objects of the Charity.
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WEST SUSSEX MUSIC TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
STRATEGIC REPORT
Financial review
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:
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costs of staff redundancies
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contractual relationships e.g. leases
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working capital requirements
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any outstanding net liabilities
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financing planned investments
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 should 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.
The policy of West Sussex Music Trust is to keep an operating free reserve with a minimum balance to reflect the above formula after deductions. 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.
Any remaining year end surplus will be designated to provide for the relocation of the charity and potential purchase of a building which would become the West Sussex Music headquarters.
Going concern
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.
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. 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.
The Trust has recovered well from the business impact of the Covid 19 pandemic but like many other organisations faces some staff recruitment and retention challenges. This has been mitigated by a wider marketing and recruitment campaign and flexible arrangements for the engagement of tutors and other staff.
As part of the National Plan for Music Education, the government announced that Arts Council England would deliver a new Investment Programme for Music Hubs. The new Music Hub programme will start from September 2024. The Trust is confident that it will be successful in securing its future funding under this initiative.
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WEST SUSSEX MUSIC TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
STRATEGIC REPORT
Future plans
The innovations taken during 2021-22 to kickstart new opportunities for children and young people are, since September 2022, being developed further by our restructured management team.
We will implement a programme of free music activities for children from low income families during school holidays, using funding from the Holiday Activities and Food scheme, and will set up of a new Youth Advisory Board to promote youth advocacy.
We have extended our free WCET pilot project into Bognor Regis and Littlehampton primary schools as well as those in Crawley. In January 2023 the next cohort of the Tomorrow's Orchestra Programme (TOPs23) will launch instrumental and ensemble opportunities for a new generation of orchestral musicians. We will launch new West Sussex Young Voices choirs around the county.
We will continue to recruit a workforce of music practitioners and partner organisations to increase opportunities for young people to access the widest range of musical opportunities.
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WEST SUSSEX MUSIC TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
West Sussex Music Trust (trading as "West Sussex Music") is a company limited by guarantee with charitable status; it incorporated on 10 May 2013 and registered with the Charity Commission on 3 July 2013.
For over 60 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:
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Mrs E M Evans - Mrs C E Golden (appointed 7/7/2022)
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Dr C Guillaumier - Mr L C Nettley (resigned 7/7/2022) - Mr T M Riches - Mrs G Stainer (appointed 11/1/2022)
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 at least 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 7 July 2022 the following trustee retired following their first term of office: - Christina Guillaumier
At the trustee's meeting on 7 July 2022 the following trustee was re-elected for a second term of office: - Christina Guillaumier
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:
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James Underwood [Chief Executive]
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Angela Croucher [Head of Finance]
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Louise Pickett [Head of Operations]
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Alison Sutton [Assistant Head]
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Paul Smyth [Assistant Head] - since 01/09/22
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WEST SUSSEX MUSIC TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
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 the business management team with responsibilities for specific areas of core delivery.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
08524556 (England and Wales)
Registered Charity number 1152703
Registered office
Herbert Shiner School South Grove Petworh GU28 0EE
Trustees
Ms E M Evans Dr C Guillaumier L C Nettley (resigned 7/7/2022) T M Riches Ms G Stainer (appointed 11/1/2022) Ms C E Golden (appointed 7/7/2022)
Company Secretary
J G Underwood
Senior Statutory Auditor
John Thacker FCA DChA
Auditors
Chariot House Limited Chartered Accountants and Statutory Auditor 44 Grand Parade Brighton BN2 9QA
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of West Sussex Music Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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WEST SUSSEX MUSIC TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
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there is no relevant audit information of which the charitable company's auditors are unaware; and
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the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
AUDITORS
The auditors, Chariot House Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 13 January 2023 and signed on the board's behalf by:
........................................................................ T M Riches - Trustee
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WEST SUSSEX MUSIC TRUST
Opinion
We have audited the financial statements of West Sussex Music Trust (the 'charitable company') for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and 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 (United Kingdom Generally Accepted Accounting Practice).
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In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 August 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 charitable company'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 Report of the Independent Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Report of the Trustees has been prepared in accordance with applicable legal requirements.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WEST SUSSEX MUSIC TRUST
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes 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 charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WEST SUSSEX MUSIC TRUST
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 a Report of the Independent Auditors 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the charity and its activities, and through discussion with the trustees and management, we identified the principal risks and considered the extent to which these would have a material impact on the financial statements. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.
We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud, and reviewed significant or unusual transactions to identify their underlying supporting rationale
We inspected the minutes of meetings of those charged with governance, and made direct enquiries of management and the board of trustees concerning the charity's policies and procedures relating to:
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Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
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Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
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The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates were indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
We also
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discussed and reviewed the charity's business model and forward planning to assess going concern
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communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
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reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
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carried out substantive testing on income and expenditure
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re-performed reconciliations of control accounts, and recalculating items such as depreciation
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. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Report of the Independent Auditors.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WEST SUSSEX MUSIC TRUST
Use of our 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.
John Thacker FCA DChA (Senior Statutory Auditor) for and on behalf of Chariot House Limited Chartered Accountants and Statutory Auditor 44 Grand Parade Brighton BN2 9QA Date: 13 January 2023
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WEST SUSSEX MUSIC TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 3 Charitable activities Charitable Activities Investment income 4 Other income Total EXPENDITURE ON Charitable activities 6 Charitable Activities NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds £ 1,143,135 473,089 1,160 100 1,617,484 1,504,608 112,876 938,104 1,050,980 |
Restricted funds £ 251 - - - 251 20,102 (19,851) 32,715 12,864 |
2022 Total funds £ 1,143,386 473,089 1,160 100 1,617,735 1,524,710 93,025 970,819 1,063,844 |
2021 Total funds £ 1,655,612 581,042 - 11,067 |
|---|---|---|---|---|
| 2,247,721 | ||||
| 1,829,766 | ||||
| 417,955 552,864 |
||||
| 970,819 |
The notes form part of these financial statements
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WEST SUSSEX MUSIC TRUST
BALANCE SHEET 31 AUGUST 2022
| Notes FIXED ASSETS Tangible assets 14 CURRENT ASSETS Debtors 15 Cash at bank CREDITORS Amounts falling due within one year 16 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 17 Unrestricted funds Restricted funds TOTAL FUNDS |
Unrestricted funds £ 494,998 44,274 709,634 753,908 (197,926) 555,982 1,050,980 1,050,980 |
Restricted funds £ - - 12,864 12,864 - 12,864 12,864 12,864 |
2022 Total funds £ 494,998 44,274 722,498 766,772 (197,926) 568,846 1,063,844 1,063,844 1,050,980 12,864 1,063,844 |
2021 Total funds £ 546,432 27,831 484,989 512,820 (88,433) 424,387 970,819 970,819 938,104 32,715 970,819 |
|---|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 13 January 2023 and were signed on its behalf by:
............................................. T M Riches - Trustee
The notes form part of these financial statements
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WEST SUSSEX MUSIC TRUST
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2022
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by operating activities Cash flows from investing activities Purchase of tangible fixed assets Sale of tangible fixed assets Interest received Net cash (used in)/provided by investing activities Cash flows from financing activities Loan repayments in year Net cash provided by/(used in) financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2022 £ 245,112 245,112 (11,713) 2,950 1,160 (7,603) - - 237,509 484,989 722,498 |
2021 £ 295,594 295,594 - - - - (50,000) (50,000) 245,594 239,395 484,989 |
|---|---|---|
The notes form part of these financial statements
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WEST SUSSEX MUSIC TRUST
NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2022
1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net income for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Loss on disposal of fixed assets Interest received (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash provided by operations |
2022 £ 93,025 60,197 - (1,160) (16,443) 109,493 245,112 |
2021 £ 417,955 64,941 3,741 - 169,668 (360,711) 295,594 |
|---|---|---|
2. ANALYSIS OF CHANGES IN NET FUNDS
| At 1/9/21 | Cash flow | At 31/8/22 | |
|---|---|---|---|
| £ | £ | £ | |
| Net cash | |||
| Cash at bank | 484,989 | 237,509 | 722,498 |
| 484,989 | 237,509 | 722,498 | |
| Total | 484,989 | 237,509 | 722,498 |
The notes form part of these financial statements
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WEST SUSSEX MUSIC TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
1. ACCOUNTING POLICIES
Accounting convention
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
The financial statements are prepared in sterling, which is the functional currency of the trust. Monetary amounts in these financial statements are rounded to the nearest £1.
The charity is a public benefit entity as defined by FRS102.
Going Concern
The financial statements have been prepared on a going concern basis. The trustees have considered all relevant information , including the annual budget, forecaste future cash flows and the impact of subsequent events in making their assessment.
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.
Income
Donations and grants are recognised as income resources when there is evidence of entitlement of 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 advanced the appropriate amounts are therefore treated as deferred income.
Expenditure
Expenditure relating to charitable activities is include 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.
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.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - Over the term of the lease Instruments - Straight line over 20 years Fixtures and fittings - 20% on cost Computer equipment - 33% on cost
The gain or loss arising on the disposal of an asset s 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.
continued...
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WEST SUSSEX MUSIC TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022
1. ACCOUNTING POLICIES - continued
Tangible fixed assets
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 estimate in order to determine the extent of the impairment loss.
Recoverable amount is the higher of the 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 o 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.
Taxation
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation Tax purposes. Accordingly the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Retirement benefits to two employees of the trust are provided by the Local Government Pension Scheme ('LGPS') which is a defined benefit scheme and assets are held separately from those of the trust.
The LGPS is a funded defined benefit scheme, however it was agreed on transfers out from the County Council that this is to be deal 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.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, short term liquid investments with a maturity of three months or less from the date of acquisition or opening of the deposit or similar accounts. Bank overdrafts are shown within borrowings and current liabilities.
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WEST SUSSEX MUSIC TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022
1. ACCOUNTING POLICIES - continued
Financial instruments (cont)
The trust has only financial assets and liabilities of a kind that qualify as basic financial instructions in line with Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instrument Issues". Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
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 discounts due.
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the trust's accounting policies the trustees are required to make judgements, estimated, 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
| Donations Grants Grants received, included in the above, are as follows: Arts Council England Arts Council England Culture Recovery Fund Brighton & Hove Music & Arts Redehall Special Needs School Arts Council England - TPS Grant Arts Council England Music Centre Grant Hertfordshire Music Service West Sussex County Council Other grants |
2022 £ 7,318 1,136,068 1,143,386 2022 £ 967,732 160,753 - - - - 1,500 6,083 - 1,136,068 |
2021 £ 12,635 1,642,977 1,655,612 2021 £ 1,052,488 383,196 26,400 2,638 56,724 100 - - 121,431 1,642,977 |
|---|---|---|
Grants received, included in the above, are as follows:
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Page 18
WEST SUSSEX MUSIC TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022
4. INVESTMENT INCOME
| Deposit account interest 5. INCOME FROM CHARITABLE ACTIVITIES Music education 6. CHARITABLE ACTIVITIES COSTS Direct Costs (see note 7) £ Charitable Activities 876,398 7. DIRECT COSTS OF CHARITABLE ACTIVITIES Staff costs Event Costs Instrument Costs Music Purchase Professional Fees: Music Room Hire Safeguarding & Risk Assessment Teaching Resources Depreciation 8. GRANTS PAYABLE Charitable Activities |
Grant funding of activities (see note 8) £ 47,253 |
2022 £ 1,160 2022 Charitable Activities £ 473,089 Support costs (see note 9) £ 601,059 2022 £ 616,273 8,377 65,199 4,762 87,907 32,983 6,893 414 53,590 876,398 2022 £ 47,253 |
2021 £ - 2021 Total activities £ 581,042 Totals £ 1,524,710 2021 £ 1,125,398 21,439 22,675 1,495 54,877 6,328 19 544 54,178 1,286,953 2021 £ 8,026 |
|
|---|---|---|---|---|
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WEST SUSSEX MUSIC TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022
9. SUPPORT COSTS
| 2022 Allocation of costs Music Education Activities undertaken directly Support costs (excluding governance) Total Governance costs Total resources expended |
Staff costs £ 616,273 374,155 990,428 53,191 1,043,619 |
Depreciation £ 53,590 6,607 60,197 - 60,197 |
Other costs £ 253,803 125,143 378,946 41,963 420,909 |
Total costs £ 923,666 505,905 |
|---|---|---|---|---|
| 1,429,571 95,154 |
||||
| 1,524,725 |
Other direct costs includes the grants awarded of £47,253.
Other governance costs are made up as follows;
| Senior Management time allocated Audit and accountancy fees Bank charges and processing Professional fees Recruitment costs |
53,191 13,948 3,880 5,474 18,661 95,154 |
|---|---|
10. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| Depreciation - owned assets Auditors remuneration - audit fees Auditors remuneration - non audit fees |
2022 £ 60,197 6,500 2,500 |
2021 £ 60,152 8,500 2,900 |
|---|---|---|
11. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 August 2022 nor for the year ended 31 August 2021.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 August 2022 nor for the year ended 31 August 2021.
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Page 20
WEST SUSSEX MUSIC TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022
12. STAFF COSTS
| Wages and salaries Social security costs Other pension costs |
2022 £ 913,935 63,968 65,716 1,043,619 |
2021 £ 1,255,745 82,254 165,362 1,503,361 |
|---|---|---|
The average monthly number of employees during the year was as follows:
| Central (including administration) Delivery staff |
2022 19 45 64 |
2021 14 46 |
|---|---|---|
| 60 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| £60,001 - £70,000 £80,001 - £90,000 |
2022 1 1 2 |
2021 1 - |
|---|---|---|
| 1 |
The total remuneration paid to Key Management Personnel during the year was £232,157 (2021; £239,958).
| 13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted funds £ INCOME AND ENDOWMENTS FROM Donations and legacies 1,568,751 Charitable activities Charitable Activities 581,042 Other income 11,067 Total 2,160,860 EXPENDITURE ON Charitable activities Charitable Activities 1,749,565 NET INCOME 411,295 RECONCILIATION OF FUNDS Total funds brought forward 526,809 |
Restricted funds £ 86,861 - - 86,861 80,201 6,660 26,055 |
Total funds £ 1,655,612 581,042 11,067 |
|---|---|---|
| 2,247,721 | ||
| 1,829,766 | ||
| 417,955 552,864 |
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WEST SUSSEX MUSIC TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022
13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
| TOTAL FUNDS CARRIED FORWARD 14. TANGIBLE FIXED ASSETS Improvements to property £ COST At 1 September 2021 15,705 Additions - Disposals - At 31 August 2022 15,705 DEPRECIATION At 1 September 2021 14,832 Charge for year 873 Eliminated on disposal - At 31 August 2022 15,705 NET BOOK VALUE At 31 August 2022 - At 31 August 2021 873 |
Instruments £ 1,075,242 4,899 (6,651) 1,073,490 546,940 53,634 (3,701) 596,873 476,617 528,302 |
Unrestricted funds £ 938,104 Fixtures and fittings £ 9,883 1,497 - 11,380 9,058 758 - 9,816 1,564 825 |
Restricted funds £ 32,715 Computer equipment £ 86,404 5,317 - 91,721 69,972 4,932 - 74,904 16,817 16,432 |
Total funds £ |
|||
|---|---|---|---|---|---|---|---|
| 970,819 | |||||||
| Totals £ 1,187,234 11,713 (6,651) 1,192,296 640,802 60,197 (3,701) 697,298 494,998 546,432 |
|||||||
15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade debtors Provision For Bad Debt Other debtors Prepayments and accrued income |
2022 £ 46,516 (23,393) 435 20,716 44,274 |
2021 £ 33,033 (13,838) 607 8,029 27,831 |
|---|---|---|
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WEST SUSSEX MUSIC TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022
16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade creditors Social security and other taxes Other creditors Accruals and deferred income |
2022 £ 28,071 17,068 6,892 145,895 197,926 |
2021 £ 49,148 12,963 5,433 20,889 88,433 |
|---|---|---|
17. MOVEMENT IN FUNDS
| Unrestricted funds General fund Future Building Fund Restricted funds Music Centres Horsham Council Instrument Fund Accessible Orchestra West Dene Fund Worthing Lions Tour Music for All TOTAL FUNDS |
At 1/9/21 £ 938,104 - 938,104 13,954 507 384 11,829 2,750 1,000 2,291 32,715 970,819 |
Net movement in funds £ 112,876 - 112,876 (6,102) (507) (384) (11,829) - (570) (459) (19,851) 93,025 |
Transfers between At funds 31/8/22 £ £ (200,000) 850,980 200,000 200,000 - 1,050,980 - 7,852 - - - - - - - 2,750 - 430 - 1,832 - 12,864 - 1,063,844 |
|---|---|---|---|
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Music Centres Horsham Council Instrument Fund Accessible Orchestra Worthing Lions Tour Music for All TOTAL FUNDS |
Incoming resources £ 1,617,484 - - - 250 - - 250 1,617,735 |
Resources expended £ (1,504,608) (6,102) (507) (384) (12,079) (570) (460) (20,102) (1,524,710) |
Movement in funds £ 112,876 (6,102) (507) (384) (11,829) (570) (459) (19,851) 93,025 |
|---|---|---|---|
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Page 23
WEST SUSSEX MUSIC TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022
17. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General fund Restricted funds Music Centres Horsham Council Instrument Fund Accessible Orchestra West Dene Fund Worthing Lions Tour Music for All TOTAL FUNDS |
At 1/9/20 £ 526,809 21,414 507 384 - 2,750 1,000 - 26,055 552,864 |
Net movement in funds £ 411,295 (7,460) - - 11,829 - - 2,291 6,660 417,955 |
At 31/8/21 £ 938,104 13,954 507 384 11,829 2,750 1,000 2,291 32,715 970,819 |
|---|---|---|---|
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Music Centres Accessible Orchestra Music for All Arts Council England - TPS Grant TOTAL FUNDS |
Incoming resources £ 2,160,860 1,100 26,400 2,637 56,724 86,861 2,247,721 |
Resources expended £ (1,749,565) (8,560) (14,571) (346) (56,724) (80,201) (1,829,766) |
Movement in funds £ 411,295 (7,460) 11,829 2,291 - 6,660 417,955 |
|---|---|---|---|
The purposes of the restricted funds are as follows:
The Music Centres' Income is restricted for the purpose of assisting five Music Centres, being Worthing, Horsham, Haywards Heath, Chichester and Crawley.
The Horsham Council grant is restricted for the purpose of the 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.
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WEST SUSSEX MUSIC TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022
17. MOVEMENT IN FUNDS - continued
The West Dene Fund is restricted for the 'Crawley Sings' event.
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.
18. EMPLOYEE BENEFIT OBLIGATIONS
Local Government Pension Scheme
The LGPS is a funded defined benefit scheme, it was agreed on transfer that this is to be dealt with an 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 was 22.7% to March 2022 and 21.7% of pensionable pay thereafter. The total employer contributions made for the year ended 31 August 2022 was £27,904 (2021: £34,570).
Other pension schemes
The trust operates a definite 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 for employers contributions was £37,812 (2021: £14,098).
19. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 August 2022
This page does not form part of the statutory financial statements
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