Charity registration number: 1152853
## Tŷ Cerdd - Music Centre Wales
Annual Report and Financial Statements
for the Year Ended 31 March 2021
HSJ Audit Limited Auditor Severn House Hazell Drive Newport NP10 8FY
**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **Contents**
|**Contents**||
|---|---|
|Trustees' Report|1 to 12|
|Independent Auditors' Report|13 to 15|
|Statement of Financial Activities|16|
|Balance Sheet|17|
|Notes to the Financial Statements|18 to 24|
**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **Trustees’ Report**
The trustees present the annual report together with the financial statements and auditors' report of the charity for the year ended 31 March 2021.
## **OBJECTIVES AND ACTIVITIES**
Tŷ Cerdd’s mission is:
**To support artists, communities and audiences to create, perform and participate in the music of Wales.**
And our vision:
## **We envisage a Wales in which music-creators of all genres and backgrounds are enabled to make music and develop careers; in which a diversity of people and communities can engage in and enjoy Welsh music.**
## **If you’re making music in Wales, it’s Welsh music!**
We deliver this mission and vision through a range of activities with composers / musiccreators and collaboration with organisations and communities. We served the whole of Wales and increasingly work from our homes (which take in south-east and west Wales), and our base in Wales Millennium Centre, which hosts a recording studio and a library of music for hire, alongside an archive collection.
We engage with international audiences and sectors, not only through our record label and publishing imprint, but also through artist-development initiatives with partners, and through our place in a range of international networks.
We deliver Lottery funding on behalf of Arts Council of Wales.
Our current goals as a charity are:
- Providing greater equality of opportunity for artists and communities
-
- Sustaining & developing excellence
- Ensuring a fit and agile organisation, able to deliver work for stakeholders and with partners
-
- Strengthening the music infrastructure within Wales
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Cerdd- Music Centre Wales
Annual Report for the Year Ended 31 March 2021
Cornerstones / Conglfeini
Arti5t5 IArti5tiaid
We place art¢st5at the heart of our We value thwr innovation, their creativity and their
dlversity. We are tommitted to enabling the treation of Welsh muyt, across a ran8e of 8enres.
Rydym yn rh ortistioid yngnghonolein 9*1th. Rydym yn gwerth[t7wrogi eu horfoesedd. eu creodigrwydd o'u
homrywtoeth. Rydym ymrwymedJ"g i hybu(ylleoeddlgw cerddorioeth Gymretq. ardrnws ystod o oenres.
Communiliesl Cwnuntd•u
The communities across Wale5 mèkinB MUc¥re ouv lrfeblwd.
Ycymunedou cefddoro ordrmvs Cymru yweln TreAdeth.
Dl¥•tshy l AMI1••th
We celebrate and embrace ihe diversityof pe in Wa. and value drfFerence.
Rydyrn yn doth1Kyn collwth047mry*YoethpoblCymru qon werthfvwwi'rqwohunl¢ethuu.
qUalV I Cydraddoldeb
We are passète about equalrty lorartisis and audiences, and strwe to remtrrfe barriers, be theyof race,
8ender, &ender-identity, disability. a8e. geogrnphy, sexualrty. reliwon. language. krty.
Rydyrn or don dros gydroddoldeb, iortistit7idochynuNeidfvoedd. qon ymdrechu igoelgworedé rhwy5trou, boed
orsoilhtl. thywe¢ld. hunonioeth I. onobledd. oedroft. doeryryddiueth. rhywioldeb. crefydd. ioith neu dloGIi.
Klndne551 Caredigfwwdd
Kindne55 and CompaOn arecentral io ovr organisatK)nal culture, and to all ourengagement.
Moe coredigwdd o thrugGreddyn gomlogi dthWlsGnt efft sefydhad tx i'n holl weithgorwch yfftgysylttu.
Partnership51 Partneiiaethau
We collaborate acr055 these cometstoneswith organisations and partners to develop opp)rtunities and improve
access for èrtists and aUde5.
RydyFn yn cydweithredu ordrow5ycong1friniynx¥u5eI#IiudOU ophortnerioididdutbfygu tyNeoeddo gwello
mynediodi 0rt1shoido chyftL*lletdlooedd.
5u5tsinability I calladYedd
Pr¢tertion of the enrnt is fvndamental. and weacknowledge our responsibility to pOnd to the global
climate emergency.
Moter5yIAoenolyw GfftddrffynyromgykhEddocrthwJ yn cydnobodeiftcylfrloldeb i ymteb frurgyfvng
hinsowdd byd*ong.
**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## _**Public benefit**_
We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous twelve months. The review looks at the success of each key activity and the benefits. The review also helps us ensure our aims, objectives and activities remained focused on our stated objectives. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities thus ensuring that it continues in its purpose.
## _**Grant making policies**_
Grants payable are payments made to third parties in the furtherance of the charitable objectives. Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SOFA once the recipient of the grant has provided the specific service or output.
Grants payable without performance conditions are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to the grant which remain in the control of the charity.
## **ACHIEVEMENTS AND PERFORMANCE**
2020-21 was a year unlike any before it. No walk of life or part of the world escaped the onslaught of the COVID-19 pandemic, and the music sector among every other was hit hard by the initial and the ongoing crisis. COVID-19 in turn threw a new light on inequality and exclusion, heightened by the killing of George Floyd and the ensuing traction of the Black Lives Matter movement. These issues all impacted significantly on the arts sector: on artists, communities and organisations.
Tŷ Cerdd quickly pivoted to provide support to our key constituents: most music-creators’ livelihoods were decimated, and community groups’ lifelines were cut, and both became our priority. With the whole team working from home, we worked to create online development and support for composers and music-creators, and to disseminate information and guidance to community groups as Welsh Government’s information was published and revised through the continuing pandemic.
Alongside this, the recording operation – usually run from the Tŷ Cerdd Studio at Wales Millennium Centre, providing an important strand of activity and income – became a digital facility, supporting organisations and artists to create online content for their communities and audiences. This activity not only provided a valuable service for the sector, but also served to mitigate significant Covid-losses across the organisation’s crucial income streams (primarily studio rental, record label, publishing and hire library).
The work of CoDi, Tŷ Cerdd’s artist-development initiative, took on even greater significance during this period. Artists’ ongoing need to advance their practice was matched with a keener need to develop income as well as to share experiences and create connections during a time of isolation. With support from Arts Council of Wales, PRS Foundation (through their UK-wide Talent Development Programme) and RVW Trust, alongside a number of partner organisations, we rolled out an expanded programme of CoDi: an online programme of workshops alongside a range of paid pathways and opportunities, including:
- **CoDi Arbrofol / CoDi Experimental** A collective of leading artists Angharad Davies, Rhodri Davies & Siwan Rhys, mentored a cohort of six participating artists through a pathway exploring experimental practice. Welsh language was to the fore, and the participants created experimental responses to the Tŷ Cerdd archive.
Participants: Amy Sterly, Emma Daman Thomas, Fern Thomas, Francesca Simmons, Simon Proffitt, Stephen Black
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**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
- **CoDi Opera** Composer Robert Fokkens, writer/dramaturg Sophie Rashbrook, soprano/composer Sarah Dacey and pianist Christopher Williams worked with six participating composers through a series of workshops. Moving from scenario, through libretto to writing for voice, each created an aria.
Participants: Bethan Morgan-Williams, Eloise Gynn, Ethnie Foulkes, Gareth Olubumni Hughes, Jasper Dommett, Rebecca Horrox
- **CoDi DIY** A pathway for music-creators who have not accessed post-school music education, CoDi DIY worked with a diverse cohort of nine artists, from singer-songwriters, R&B and folk, to classical, experimental and electronic, the participants were mentored by pathway leader Pwyll ap Sion alongside a specially-selected team of mentors.
Participants: Cara Ludlow, Francesca Murphy, Gwen Sion, Hannah Rattigan (Hannah Paloma), Heledd Evans, Jake Griffiths, Josh Whyte, Kevs Ford, Rich Thair
- **CoDi Grange** An arts and health initiative, in partnership with Aneurin Bevan University Health Board and consultancy Studio Response. CoDi Grange commissioned a cohort of artists to create music and sound installations for the multi-faith chapel space in the new Grange University Hospital at Llanfrechfa, near Cwmbran. Central to the creation period for all of the artists was direct engagement with members of the community within the health board’s ward.
Participants: Jo Thomas (lead artist); Ashley John Long, Delyth & Angharad Jenkins, Leona Jones, Stacey Blythe, Teifi Emerald
- **CoDi One2One** In partnership with BBC National Orchestra of Wales, ten composers facing lockdown in Wales were selected to each write a short work for a solo orchestral instrument. Each composer was paired with a member of BBC NOW, who recorded a video of the new work in their own home. The pairings:
Ashely John Long / Matthew Featherstone (flute) Christopher Bond / Daniel Trodden (tuba) Daniel Bickerton / Steve Hudson (oboe) Eloise Gynn / Sandy Bartai (cello) Gareth Bonello / Alice Neary (cello) Jack White / Rebecca Jones (viola) Julia Plaut / Jarek Augustyniak (bassoon) Mandy Leung / Robert Plane (clarinet) Natalie Roe / Meilyr Hughes (horn) Sarah Jenkins / Nick Whiting (violin)
- **Creating orchestral mock-ups** In artistic- and funding-partnership with media composer Jordan Rees, this pathway offered two music-creators a five-week remote learning course on combining sound design and electronic material with acoustic music.
Participants: Jonathan Dalglish, Robert Singer
- **CoDi Off-Grid** A brand new network of experimental sound-artists and musiccreators working in free-improvisation, sound-art, noise, drone, no-input mixing or other avant-garde practice. The initiative created a database of artists, and held online talks and discussion events with the following artists:
Sarah Angliss, Kathy Hinde, Leafcutter John, Maggie Nicols, Gwen Sion, Simon Whitehead
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**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
**CoDi Mentors** Five Wales-based music-creators were matched with mentors from beyond Wales, to provide an outside-eye on their creative practice: Ashley John Long / Laura Jurd Francesca Simmons / Kathy Hinde Leona Jones / Kathy Hinde Mandy Leung / Supriya Nagarajan Rob Smith / Mark Boden
- **CoDi Adopt a Music-creator** In collaboration with the UK-wide scheme fronted by Making Music and Sound and Music, Tŷ Cerdd selected composer Eloise Gynn from open call, and paired her with Monmouth Male Voice Choir.
Tŷ Cerdd’s funding schemes (which distribute Lottery monies through a delegation agreement with Arts Council of Wales) were paused during the first three quarters of 2020/21, and repurposed to ACW’s COVID emergency schemes. In January 2021, following dialogue and lobbying, ACW and Welsh Government each committed £50k for emergency community-music funding, which was distributed in three pots, each offering up to £2k per organisation:
- **Rescue** – urgent financial support for groups in danger of becoming insolvent
- **Resource** – helping organisations to resume activity by contributing to costs associated with COVID
- **Restart** – supporting communities to restart music-making through musiccreation, performance and collaboration
This emergency funding pot was very heavily over-subscribed, demonstrating the acute need felt by community music organisations across the nation. Alongside the emergency funding, we relaunched a recalibrated suite of regular Lottery funds, also offering awards of up to £2k per organisation:
- **Create** – resourcing the creation of new work by composers and new composers of any genre
- **Engage** – funding a range of activity, from live performance to online productions, from workshops to community collaborations
- **Inspire** – supporting the development of work with participants aged under 26
As with the emergency funding, our own Lottery schemes were heavily oversubscribed at relaunch in January 2021, with a perceptibly more diverse range of organisations submitting bids. New relationships with Disability Arts Cymru and Race Council Cymru were established during this period, and we made a new commitment to ensuring representation on funding panels.
Pre-COVID-19, in 2019/20, Tŷ Cerdd had begun an important participatory initiative: Affricerdd was funded by ACW and delivered in partnership with SSAP (Sub-Sahara Advisory Panel), and was a response to a clear disparity and need in our activity, alongside minimal engagement with our nearest community in Butetown. The project took the form of weekly drop-in sessions in our studio in Wales Millennium Centre, so was cut short by the pandemic. We were able to develop a limited amount of activity with a few of the participants online, and we commissioned them to create a new audio-visual release responding to the music and artists we’d connected with as a group. _Under Skies_ was a joyful response to experiences of separation and connection.
During lockdown, with support from Arts Council of Wales’s Stabilisation fund, we collaborated with Privilege Café (campaigner / change-maker Mymuna Soleman) to take forward a piece of work on Music & Race in Wales. Six public Zoom events, led by Mymuna Soleman and Tumi Williams (musician, educator, Tŷ Cerdd board member) created a safe space for honest discussion and for sharing of lived-experienced and learning. Guest speakers addressed to a range of areas, including education, rurality and intersectionality.
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**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
This work was extremely impactful for Tŷ Cerdd, and the catalyst for an ongoing strategic commitment to enabling, supporting and working with artists of colour. The first of these strands began just before the end of the year: Music Industry 101 is a collaboration with FOCUS Wales and Forté Project, and provides support / training / information for music creatives in online events which are led by people of colour.
With Equalities, Diversity and Inclusion (EDI) work taking on increasing importance to us, Tŷ Cerdd ramped up training and development work across the organisation, including participating in Music Masters’ I’M IN programme, and undertaking unconscious bias training from Diverse Cymru. We engaged with the seminal #WeShallNotBeRemoved movement, a UK-wide disability arts alliance that advocated and campaigned to support D/deaf and disabled people in the arts, and reaffirmed our Keychange pledge towards gender equality. Additionally, our ongoing commitment to Sound and Music’s Fair Access Principles continued to underscore all of our work with artists.
Amid this work, we were accepted as an applicant to the Weston Jerwood Creative Bursaries scheme, alongside 49 other organisations across the UK: a programme that supports individuals from lower socio-economic backgrounds to develop careers in the arts through a Fellowship bursary that part-funds a year’s employment. During the period from autumn 2020 to spring 2021, a team made up from staff and board took part in organisational development session across the UK cohort, and we advertised for and recruited our Fellow, Kiddus Murrell (to start in April 2021).
International connections were significantly affected by the worldwide lockdown, and planned events were cancelled and postponed, including ISCM (International Society for Contemporary Music) and IAMIC (International Association of Music Information Centres). During the period, Tŷ Cerdd administered the call to artists for the planned 2021 Festival in Shanghai & Nanning, creating a shortlist of works by Ashley John Long, Claire Victoria Roberts, Gareth Churchill, Julia Plaut, Nathan James Dearden and Niamh O’Donnell. The festival programmers in China selected Ashley John Long’s work (for chamber ensemble) for performance, and the event has been rescheduled to March 2022.
Our label, Tŷ Cerdd Records, was impacted significantly by the pandemic. We pressed pause on production while the studio was closed and we were busy prioritising support activity, and meanwhile experienced a COVID-related slump in sales. In March 2021 we resumed activity on the label, with the release of _Cwmwl Tystion_ , a jazz album by Tomos Williams and ensemble, later nominated for Welsh Language Album of the Year.
Over on Tŷ Cerdd Publications there were 26 printed works in 2020-1, from established contemporary composers such as Rhian Samuel and Richard Elfyn Jones to emerging artists whose work was published through our CoDI One2One partnership with the BBC. One classic aimed at a young audience that we published from the Hughes & Son catalogue was ‘Deg o Forwyr a Chaneuon eraill’ by Rhys Jones, in anticipation of it being a set piece at the Urdd Eisteddfod.
Our strong and growing relationship with RWCMD continued, but in a digital space, and once again we collaborated to present with with and for the National Eisteddfod: in #EncoreUnawd a cohort of composers were commissioned to write short works for solo instrument, each of whom created video recordings which were broadcast as part of the online Eisteddfod Amgen.
The staff team grew during the year, welcoming back Shakira Mahabir from maternity leave into a new role as Relationships & Communications Manager, with maternity cover Abby Charles taking on a permanent role as Finance & Administration Manager. The Board welcomed Tumi Williams to its ranks, and the Board stepped up to support the team through more regular meetings, with a new pattern emerging: quarterly full board meetings, with monthly Board Shorts to address specific areas. A skills-audit of the Board was undertaken, to assess our needs and strengths, and inform future recruitment.
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**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **Financial review**
## _**Policy on reserves**_
As at 31 March 2021 the charity was reporting total reserves of £208,886 (2020: £146,233). Of this balance £131,924 (2020: £99,071) related to general unrestricted reserves and £76,962 (2020: £47,162) related to restricted reserves.
Of the unrestricted reserves a balance £101,010 (2020: £79,781) related to free reserves which are readily available to the Trustees.
It is the policy of the charity to hold sufficient reserves to meet all immediate liabilities and costs associated with any known future commitments. The level at which this balance is set is reviewed periodically by the trustees to ensure reflective of the charity’s current position.
## _**Investment policy and objectives**_
Any surplus cash balances held are deposited within interest bearing accounts.
## **PLANS FOR FUTURE PERIODS**
## **Plans for 2021/22 include:**
Further releases on Tŷ Cerdd Records and publications, including
- _Taliesin’s Song Book_ : 20th & 21st-century Welsh song performed by Andrew Matthews-Owen plus host of Welsh singers
- _Summer’s Day_ : Chris Williams performing Mervyn Roberts
- _Silver Apples of the Moon_ : Ensemble Eos performing Reynolds, Burtch and Weeks
The development of CoDi artist development work, with a range of interventions and creative pathways, including new creative strands, a range of professional development workshops.
The introduction of Tapestri, a brand new, living music archive, a nation-wide musical celebration of the people, communities and languages of Wales – in partnership with National Library of Wales, Disability Arts Cymru and National Eisteddfod. Tapestri’s first four threads:
- _Perisgop_ – disabled-led digital music-theatre production, placing livedexperience at the heart of this commentary on life with sight-loss in Wales
- _Bwthyn Sonig_ – developing an experimental music ensemble with learningdisabled adults (North & South Wales & online)
- _Affricerdd_ – commissions by Wales-based artists of African descent, in collaboration with Sub-Sahara Advisory Panel and National Dance Company Wales
- _Polskerdd_ – creative engagement & community feasting with Aberystwyth’s Polish & Welsh communities
Further strategic work in Equalities, Diversity and Inclusion work, including our WJCB Fellow placement, and development of the Music Industry 101 strand.
Advancement of our Lottery schemes, in partnership with Disability Arts Cymru and Race Council Cymru.
The furtherance of our international work, including a relationship with Marseille-based Ensemble Télémaque, and engagement with the ISCM and IAMIC networks
An extensive artist-development programme (in collaboration with FOCUS Wales, Trac and Wales Arts International) leading up to Wales @ Showcase Scotland 2022.
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**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## _**Nature of governing document**_
The charity is controlled by its constitution being a constitution of a Charitable Incorporated Organisation (CIO).
## _**Recruitment and appointment of trustees**_
As set out in the Constitution, the Chairman and Vice Chairman are elected by, and the Director and treasurer appointed by, the trustees.
## _**Induction and training of trustees**_
All new trustees undergo an induction programme, which includes:
- an induction pack that is given to new trustees (and to re-elected trustees), which includes policy and procedures such as declaration of interest, confidentiality, policies and means of assistance for member societies
- any other training which may be required from time to time.
## **Relationships with related parties**
## **Arts Council of Wales**
The Charity receives funding from the Arts Council of Wales, one of whose officers attends meetings of the Board, and regularly liaises with the Director. The Arts Council of Wales provided revenue grant funding to Tŷ Cerdd - Music Centre Wales this financial year in the sum of £204,525 (2020: £204,525).
## **Organisational structure**
Tŷ Cerdd’s board of trustees meets quarterly, with frequent Board Shorts between main meetings (monthly, where possible). All trustees are required to declare conflicts of interest annually and to absent themselves from the meeting in the case of a personal conflict. Trustees are appointed for an initial term of three years and can be re-elected at Annual General Meetings (or other specially convened meetings) for two subsequent terms of three years.
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**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Trustees**
Steph Power, Chair Nasir Adam Sara Beer Gemma Durham (retired 17/03/2021) Gillian Green Suzanne Hay (retired 17/03/2021) Graham Howe John Hywel Morris Christopher Parsons Harriet Wybor Tumi Williams (appointed 11/06/2020)
## **Staff**
Deborah Keyser, Director Abby Charles, Finance & Administration Manager Ethan Morgan, Publishing & Research Officer James Clarke, Recording Studio Manager & Producer Matthew Thistlewood, Projects Manager Shakira Mahabir, Relationships & Communications Manager
## **Principal Office**
The Wales Millennium Centre Bute Place Cardiff CF10 5AL
## **Charity Registration Number**
1152853
## **Bankers**
HSBC, 56, Cardiff Queen Street
## **Auditor**
HSJ Audit Limited Auditor Severn House, Hazell Drive Newport NP10 8FY
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**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **Statement of Trustees' Responsibilities**
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditor**
Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
The annual report was approved by the trustees of the charity on 14 December 2021 and signed on its behalf by:
......................................... Steph Power Chair
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**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **Independent Auditor's Report to the Members of Tŷ Cerdd - Music Centre Wales**
## **Opinion**
We have audited the financial statements of Tŷ Cerdd - Music Centre Wales (the 'charity') for the year ended 31 March 2021, which comprise the Statement of Financial Activities, Balance Sheet, 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 United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31 March 2021 and of its results for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the trustees use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **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.
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**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- 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 set out on page 13, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as 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 charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
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**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **Independent Auditor's Report to the Members of Tŷ Cerdd - Music Centre Wales**
## **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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the charity trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our work has been undertaken so that we might state to the trustees those matters we are required to state to trustees 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 charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.
...................................... Mr Andrew Hill (Senior Statutory Auditor) For and on behalf of HSJ Audit Limited, Statutory Auditor
Severn House Hazell Drive Newport NP10 8FY
17/12/2021 Date:.............................
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**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **Statement of Financial Activities for the Year Ended 31 March 2021**
|**Note**|**Unrestricted**
**Restricted**
**Total**|
|---|---|
||**funds**
**funds**
**2021**|
||**£**
**£**
**£**|
|**Income and Endowments from:**||
|Donations and legacies|30
-
30|
|Charitable activities|296,830
205,432
502,262|
|Total income|296,860
205,432
502,292|
|**Expenditure on:**||
|Charitable activities|(264,007)
(175,632)
(439,639)|
|Total expenditure|(264,007)
(175,632)
(439,639)|
|Net movement in funds|32,853
29,800
62,653|
|**Reconciliation of funds**||
|Total funds brought forward|99,071
47,162
146,233|
|Total funds carried forward
13|131,924
76,962
208,886|
|**Note**|**Unrestricted**
**Restricted**
**Total**|
||**funds**
**funds**
**2020**|
||**£**
**£**
**£**|
|**Income and Endowments from:**||
|Donations and legacies|5,000
-
5,000|
|Charitable activities|245,383
166,630
412,013|
|Other income|3,814
-
3,814|
|Total income|254,197
166,630
420,827|
|**Expenditure on:**||
|Charitable activities|(260,782)
(163,781)
(424,563)|
|Total expenditure|(260,782)
(163,781)
(424,563)|
|Net (expenditure)/income|(6,585)
2,849
(3,736)|
|Gross transfers between funds|2,508
(2,508)
-|
|Net movement in funds|(4,077)
341
(3,736)|
|**Reconciliation of funds**||
|Total funds brought forward|103,148
46,821
149,969|
|Total funds carried forward
13|99,071
47,162
146,233|
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 13.
Page 16
**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **(Registration number: 1152853) Balance Sheet as at 31 March 2021**
|**Note**|**2021**
**2020**|
|---|---|
||**£**
**£**|
|**Fixed assets**||
|Tangible assets
8|50,544
40,198|
|**Current assets**||
|Stocks
9|10,944
8,132|
|Debtors
10|138,276
37,586|
|Cash at bank and in hand|180,070
147,547|
||329,290
193,265|
|**Creditors: Amounts falling due within oneyear**
11|(170,948)
(87,230)|
|**Net current**assets|158,342
106,035|
|**Net**assets|208,886
146,233|
|**Funds of the charity:**||
|**Restricted funds**|76,962
47,162|
|**Unrestricted income funds**||
|Unrestricted funds|131,924
99,071|
|**Total funds**
13|208,886
146,233|
The financial statements on pages 16 to 24 were approved by the trustees, and authorised for issue on 14 December 2021 and signed on their behalf by:
......................................... Steph Power Chair
17
**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **1 Accounting policies**
## **Statement of compliance**
The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
## **Basis of preparation**
Tŷ Cerdd - Music Centre Wales meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Exemption from preparing a cash flow statement**
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
## **Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
## **Income and endowments**
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
## _**Donations and legacies**_
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
18
**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **Governance costs**
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’ meetings and reimbursed expenses.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the 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 of the 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.
## **Intangible assets**
Intangible assets represent recording costs in relation to online content and are stated in the Balance Sheet at cost less accumulated amortisation and impairment. They are amortised over their estimated useful economic lives.
## **Tangible fixed assets**
Individual fixed assets costing £500.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
## **Amortisation**
Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:
## **Asset class**
## **Amortisation method and rate**
Recording costs 5 years straight line
## **Depreciation and amortisation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Library publications - 10% straight line Musical instruments - 25 years straight line Studio and office equipment - 20% straight line
## **Stock**
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the weighted average method.
Page 19
**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees’ discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
## **2 Income from donations and legacies**
|**2**
**Income from donations and legacies**|||||
|---|---|---|---|---|
||**Unrestricted**||||
||**funds**||||
|||**Total**|**Total**||
||**General**|**2021**|**2020**||
||**£**|**£**|**£**||
|Donations and legacies;|||||
|Donations from individuals|30|30|-||
|Legacies|-|-|5,000||
||30|30|5,000||
## **3 Income from charitable activities**
|**3**
**Income from charitable activities**|**3**
**Income from charitable activities**|
|---|---|
|**Unrestricted funds**||
|**General**
**£**
**Restricted**
**funds**
**£**
**Total**
**2021**
**£**
**Total**
**2020**
**£**||
|Library hire charges
265
-
265
1,482||
|Recording studio
61,116
-
61,116
38,654||
|Projects and workshops
-
-
-
1,670||
|Affiliation fees
-
-
-
188||
|Arts Council of Wales Revenue Grant
221,775
10,978
232,753
204,525||
|Arts Council of Wales Lottery Grant
7,000
83,000
90,000
82,125||
|CoDI Project
6,674
53,000
59,674
51,789||
|Arts Council of Wales Resilience
Programme
-
-
-
4,250||
|Wales Arts International
-
1,000
1,000
15,000||
|Affricerdd
-
7,454
7,454
12,330||
|Welsh Government EmergencyFunds
-
50,000
50,000
-||
||296,830
205,432
502,262
412,013|
Page 20
**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **4 Analysis of governance and support costs**
## **Support costs allocated to charitable activities**
|**Basis of**
**allocation**|**Staff costs**
**Premises costs**
**including**
**depreciation**
**Total**
**2021**
**Total**
**2020**|
|---|---|
||**£**
**£**
**£**
**£**|
|Development of
Percentage|35,006
12,851
47,857
45,521|
|Welsh Music
time spent||
## **Governance costs**
||**General**
**Total**
**2021**
**Total**
**2020**|
|---|---|
||**£**
**£**
**£**|
|Audit fees||
|Audit of the financial statements|3,070
3,070
3,000|
|Other fees paid to auditors|1,550
1,550
1,500|
|Legal fees|206
206
724|
||4,826
4,826
5,224|
## **5 Trustees remuneration and expenses**
During the year the charity made the following transactions with trustees:
£206 (2020: £993) of expenses were reimbursed to during the year.
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any other benefits from the charity during the year.
## **6 Staff costs**
The aggregate payroll costs were as follows:
|The aggregate payroll costs were as follows:||
|---|---|
||**2021**
**2020**|
||**£**
**£**|
|**Staff costs during the year were:**||
|Wages and salaries|140,456
140,298|
|Social security costs|8,224
9,785|
|Pension costs|26,323
25,926|
||175,003
176,009|
No employee received emoluments of more than £60,000 during the year
Page 21
**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **7 Taxation**
The charity is a registered charity and is therefore exempt from taxation.
## **8 Tangible fixed assets**
|**8**
**Tangible fixed assets**|**8**
**Tangible fixed assets**|
|---|---|
|**Furniture and**
**equipment**
**£**
**Other tangible**
**fixed asset**
**£**
**Total**
**£**||
|**Cost**||
|At 1 April 2020
37,585
31,920
69,505||
|Additions
17,034
-
17,034||
|At 31 March 2021
54,619
31,920
86,539||
|**Depreciation**||
|At 1 April 2020
21,646
7,661
29,307||
|Charge for theyear
5,411
1,277
6,688||
|At 31 March 2021
27,057
8,938
35,995||
|**Net book value**||
|At 31 March 2021
27,562
22,982
50,544||
|At 31 March 2020
15,939
24,259
40,198||
|**9**
**Stock**||
||**2021**
**2020**|
||**£**
**£**|
|Stocks|10,944
8,132|
|**10**
**Debtors**||
||**2021**
**2020**|
||**£**
**£**|
|Trade debtors|9,566
14,033|
|Prepayments|128,710
23,553|
||138,276
37,586|
|**11**
**Creditors: amounts falling due within one year**||
||**2021**
**2020**|
||**£**
**£**|
|Trade creditors|132,647
7,292|
|Accruals|38,301
79,938|
||170,948
87,230|
Page 22
**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **12 Obligations under leases and hire purchase contracts**
## **Operating lease commitments**
Total future minimum lease payments under non-cancellable operating leases are as follows:
||**2021**|**2020**||
|---|---|---|---|
||**£**|**£**||
|**Land and buildings**||||
|Within one year|14,625|14,625||
|Between one and fiveyears|14,625|-||
||29,250|14,625||
|**Other**||||
|Within one year|478|6,595||
|Between one and fiveyears|2,627|27,096||
||3,105|33,691||
## **13 Funds**
|**13**
**Funds**||
|---|---|
||**Balance at 1**
**Incoming**
**Resources**
**Balance at 31**|
||**April 2020**
**resources**
**expended**
**March 2021**|
||**£**
**£**
**£**
**£**|
|**Unrestricted funds**||
|**_General_**||
|General Fund|99,071
296,860
(264,007)
131,924|
|**Restricted funds**||
|Grand piano|20,908
-
(1,277)
19,631|
|CoDi Project|8,443
53,000
(26,257)
35,186|
|Lottery|17,811
133,000
(128,666)
22,145|
|Wales Art|-
1,000
(1,000)
-|
|Affricerdd|-
7,454
(7,454)
-|
|Arts Council of Wales -|-
10,978
(10,978)
-|
|Stabilisation Grant||
|**Total restricted funds**|47,162
205,432
(175,632)
76,962|
|**Total funds**|146,233
502,292
(439,639)
208,886|
Page 23
**Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2021**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
||**Balance at 1**
**April 2019**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers**
**Balance at 31**
**March 2020**|
|---|---|
||**£**
**£**
**£**
**£**
**£**|
|**Unrestricted funds**||
|**_General_**||
|General Fund|103,148
254,197
(260,782)
2,508
99,071|
|**Restricted funds**||
|Grand piano|22,185
-
(1,277)
-
20,908|
|Composer & performer|5,000
-
-
(5,000)
-|
|bursaries||
|CoDi Project|10,017
52,925
(54,499)
-
8,443|
|ISCM|383
-
(2,619)
2,236
-|
|Lottery|9,236
82,125
(73,550)
-
17,811|
|Wales Art|-
15,000
(15,231)
231
-|
|Affricerdd|-
12,330
(12,355)
25
-|
|Resilience|-
4,250
(4,250)
-
-|
|**Total restricted funds**|46,821
166,630
(163,781)
(2,508)
47,162|
|**Total funds**|149,969
420,827
(424,563)
-
146,233|
The specific purposes for which the funds are to be applied are as follows:
The Grand piano fund represents the gift of a grand piano to Tŷ Cerdd.
The Composer and performer bursaries fund represents legacy income received by the charity during the year for this specific purpose.
## **14 Analysis of net assets between funds**
|**14**
**Analysis of net assets between funds**||
|---|---|
||**Unrestricted**
**funds**|
||**General**
**Restricted**
**funds**
**Total funds**|
||**£**
**£**
**£**|
|Tangible fixed assets|30,913
19,631
50,544|
|Current assets|271,958
57,332
329,290|
|Current liabilities|(170,948)
-
(170,948)|
|Total net assets|131,923
76,963
208,886|
Page 24