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2022-03-31-accounts

Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

Charity registration number: 1152853

Tŷ Cerdd - Music Centre Wales

Annual Report and Financial Statements

for the Year Ended 31 March 2022

HSJ Audit Limited Auditor Severn House Hazell Drive Newport NP10 8FY

Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

Contents

Trustees' Report 1 to 11
Independent Auditors' Report 12 to 14
Statement of Financial Activities 15
Balance Sheet 16
Cash Flow Statement 17
Notes to the Financial Statements 18 to 28

Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

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 2022.

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 / music-creators 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:

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Tg Cerdd - Muslc Centre Wales Annual Report fr)r the Year Ended 31 March 2022 Cornerstones / Conglfeini Artists IArtistiaid We place artists at the heart ol our work. We value their Innovation, their creativity and their diver51ty. We are committed to enabling the creation of We15h music, across a range of genres. Rydym yn rhoi ortistioid yng nghonol ein gwoirh. Rydym yn gwerthlowrogi eu horloesedd, eu creodigrwydd o'u homrywiaerh. Rydym yn ymrwymedig i hybu cyfleoedd i greu cerddorioeth Gymreig, ar drows ystod o genres. Cornrnunitie5 1 Cymunedau The communities across Wales making music are our lifeblood. Y cymunedou sy'n cerddora ur druws Cymru yw ein henEidfaeth. Diversityl Amrywiaeth We celebrate and embrace the diversity of people in Wales. and value difference. Rydym yn dothlu ac yn cofleidio amrywioeth pobl Cymru gan werthfowrogi'r gwtthanioethau. Equality I Cydraddoldeb We are passionate about equality for artists and audience5, and strive to rernove barriers, be they of race. 8ender, gender-ldentity, disability, a8e, geography, seyualityi religion, language, poverty. Rydym or dr05 gydroddoldeb, i urt15tiaida chynulleidfuoedd, gun ymdrechu i goel gworeda rhwy5truu, boed orsoil hil, rhywedd, hunanioeth rywedd, unobledd, oedron, daeuryddioeth, rhywioldeb, crefydd, iaith neu dlodi. Kindness I Caredigrwydd Kindness 3nd compassion are central to our organisationèl culture, and to all our engagement. Moe coredignvyddo thrugrjreddyn gonolog i ddiwylliont ein selydliod uc i'n holl weithgonvch ymgysylltu. Partnershlps I Partnertaethau We collabor3te across these cornerstones with organi53tions and partners to develop opportunities and improve access lor artists and audiences. Rydym yn cydweithredu ardruw5 y conglfeini ymo u 5efydlioduu u phurtneriaid i ddotblygu ryfleoedd u gwello mynediod i ortistioid o chynulleidfooedd. Sustsinability I Cynaliadwyedd Protection of the environtnent 15 fundamental, and we acknowledge our responsibility to respond to the global clim3te emergenry. Motersylfaenol yw omddiffyn yromgylchedd ac rydym yn cydn(Tbodein cyffifoldeb i ymoteb i'rar4yfvn4 hin5cwdd byd-eung. Page 2

Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

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

2021-22 opened with the Welsh music sector striving to find a new norm amid the continued impacts of Covid-19, which saw variants surging, rafts of performances still being cancelled, and music-makers endeavouring to keep creating and performing. The challenge for Tŷ Cerdd was clear, and two-fold: to deliver support to an increasingly broad range of music-makers and communities, and to sustain ourselves as an organisation in the light of Covid-related loss of earned income.

The work of CoDi , Tŷ Cerdd’s music-creator-development initiative, remained central to that strategic support of Welsh music. CoDi’s action-research model enables the organisation to create pathways to targeted groups, genres, demographics, and provides a route to remove barriers and extend reach, and during this year, with support from Arts Council of Wales, PRS Foundation (through their UK-wide Talent Development Programme) and RVW Trust, and alongside a number of partner organisations, we rolled out an expanded programme of CoDi, including:

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

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. The completed works were released on a digital album, Cynefin – Music for the Grange, released on Tŷ Cerdd Records.

Participants: Jo Thomas (lead artist); Ashley John Long, Delyth & Angharad Jenkins, Leona Jones, Stacey Blythe, Teifi Emerald

Support for music-making up and down the nation was delivered through our Lottery funds , delegated from Arts Council of Wales, and split across three pots:

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

From leisure-time and community groups to professional work in a range of diverse settings, over £140k of funds was distributed in 104 awards to organisations (35 Create, 40 Engage, 29 Inspire). All schemes were over-subscribed, and have been attracting a perceptibly more diverse range of organisations submitting bids. New relationships with Disability Arts Cymru and Race Council Cymru have been part of a commitment to ensuring representation on funding panels.

As part of our commitment to celebrate music and musicians from across the nation, our Tapestri programme continued: a brand new, living music archive, a nation-wide musical celebration of the people, communities and languages of Wales. Partners across the project were Disability Arts Cymru, National Eisteddfod and National Library of Wales. The threads of Tapestri in 21-22 were:

In early 2021/22 Kiddus Murrell joined the team for a year, under the Weston Jerwood Creative Bursaries (WJCB) programme, a scheme that supports individuals from lower socio-economic backgrounds to develop careers in the arts through a Fellowship bursary. Kiddus worked with the team for half of each week over the year, supporting delivery across our activity including community engagement and artist development, and focussed on his own artistic practice for the other half. Alongside this, members of staff and board took part in organisational development sessions attended by colleagues from across the UK cohort. During his last months with Tŷ Cerdd, Kiddus and Tŷ Cerdd worked with Arts Active on a sonic map of Cardiff with young people from across the city. The legacy of the WJCB scheme has been wide-reaching for the organisation.

During his time with us, Kiddus Murrell also contributed to Music and Race in Wales , our over-arching strategy developed initially through work during the pandemic in a series of open discussions (co-hosted with Privilege Café). Alongside tactical examples such as the Affricerdd, we also initiated a series of Music Industry 101 sessions – online skill-and-information sharing for all music creators, but always presented and hosted by people of colour. This expanded to strategic work around Race, that has become embedded across our work and is informing future programmes.

Following a distinct covid-related hiatus for label activities and releases during 20/21, the recording operation pivoted back to generating activity on the Tŷ Cerdd Records . Releases during this period:

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

At the close of the financial year, as part of the reanimation of the label, we contracted Steve Long (Director of Signum Records, a successful independent label) to work with us on developing the business model.

Over on Tŷ Cerdd Publications activity was flexed to provide different a variety of areas of support to composers, as well as to documenting new work created through the CoDi programme, and a great deal of capacity was used on creating video content for the CoDA digital festival. Alongside this activity, 8 new works were published in 2021-22, from established contemporary composers to emerging artists whose work was published through CoDi and NightMusic strands. Expert in-house editing and mentoring is a particularly useful part of the Tŷ Cerdd offer, adding value and legacy to the artist-development opportunities we offer, and was invaluable to the composer cohort of 21-22.

And the Tŷ Cerdd library and collection recommended more regular activity during the recovery period, as performing groups and societies began to restart and re-engage with music-making, both live and digital, and performers – from students to professional – accessed the research resource to discover Welsh repertoire.

Showcase Scotland Artist Development Programme : complementary to our CoDi work, Tŷ Cerdd worked in partnership with FOCUS Wales and Trac Cymru, with funding and support from Wales Arts International, on rolling out a substantial programme of artist development for a cohort of 15 artists/acts selected from applications to Showcase Scotland (industry facing showcase at Celtic Connections, which featured Wales in January 2022) (inc Music Ind 101). The programme included a central programme of mentoring, alongside bursaries and training.

Our strong and growing relationship with RWCMD continued. In a digital space we once again collaborated to present work for the National Eisteddfod’s Eisteddfod Amgen. Our partnership reaches across the musical activity of the conservatoire, and we were able to host interns from their Arts Management MA course, who worked on a number of areas of Tŷ Cerdd activity.

Tŷ Cerdd’s role in sector representation and development , within Wales and the UK, and on an international stage, was significant during this year, including:

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

Tŷ Cerdd’s board of trustees continued to provide governance and invaluable support to the staff team through quarterly board meetings and monthly board shorts. Both staff and board members took part in Theory of Change sessions in the early part of the year – taking forward, in particular, the strategy and targets around EDI that the organisation has been driving forward since before Covid-19. We engaged with Anthem on their Wales Youth Music Forum, sponsoring three young people to participate, and informing our future decision to recruit young trustees.

During the period, we played a part in consultation and visioning work with Wales Millennium Centre , where our office is based, into the creation of Makers’ Spaces at the venue– plans for which include us as key collaborators on work in the Studio space, and which will impact considerably on our office space and activity in coming years.

Financial review

Policy on reserves

As at 31 March 2022 the charity was reporting total reserves of £244,921 (2021: £208,886). Of this balance £122,645 (2021: £131,924) related to general unrestricted reserves and £122,276 (2021: £76,962) related to restricted reserves.

Of the unrestricted reserves a balance £95,456 (2021: £101,010) 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.

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

PLANS FOR FUTURE PERIODS

Plans for 2022/23 include

Alongside implementing plans to develop Tŷ Cerdd Records through the continued consultation with Signum Records, further releases and publications are planned, including:

The development of CoDi artist development work, with a range of interventions and creative pathways, including:

Rolling out a further strand of Tapestri:

Further strategic work in Equalities, Diversity and Inclusion work, including 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 through the ISCM and IAMIC networks, and the delivery of the Wales presence at Classical:NEXT and WOMEX, in partnership with Wales Arts International

The completion of the extensive artist-development programme (in collaboration with FOCUS Wales, Trac and Wales Arts International) connected to Wales @ Showcase Scotland 2022.

Development of the Board through an open call for new trustees, with a particular emphasis on young people.

Continued dialogue and planning with WMC over the development of makers’ Spaces and office.

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

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:

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 £206,775 (2021: £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 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees

Steph Power, Chair Christopher Parsons Gillian Green Graham Howe Harriet Wybor John Hywel Morris Nasir Adam (Resigned 02/11/2021) Rachel Ford-Evans (appointed 17/12/2021)

Sara Beer

Tumi Williams

Staff

Deborah Keyser, Director Abby Charles, Finance & Administration Manager Ethan Davies, Publishing & Research Officer Kiddus Murrell, Resident Music Creator 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 2022

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:

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 7 December 2022 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 2022

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 2022, 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:

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:

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

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.

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:

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 2022

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.

----- Start of picture text -----
......................................
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Mr Andrew Hill (Senior Statutory Auditor)

For and on behalf of HSJ Audit Limited, Statutory Auditor

Severn House Hazell Drive Newport

NP10 8FY

20/12/2022 Date:.............................

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

Tŷ Cerdd - Music Centre Wales

Statement of Financial Activities for the Year Ended 31 March 2022

Unrestricted
funds
£
Restricted
funds
£
Total
2022
£
7,471
-
7,471
260,336
320,369
580,705
1,668
-
1,668
269,475
320,369
589,844
(278,754)
(275,055)
(553,809)
(278,754)
(275,055)
(553,809)
(9,279)
45,314
36,035
(9,279)
45,314
36,035
131,924
76,962
208,886
122,645
122,276
244,921
Unrestricted
funds
£
Restricted
funds
£
Total
2021
£
30
-
30
296,830
205,432
502,262
296,860
205,432
502,292
(264,007)
(175,632)
(439,639)
(264,007)
(175,632)
(439,639)
32,853
29,800
62,653
32,853
29,800
62,653
99,071
47,162
146,233
131,924
76,962
208,886
Note
Income and Endowments from:
Donations and legacies
Charitable activities
Other income
Total income
Expenditure on:
Charitable activities
Total expenditure
Net (expenditure)/income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
14
Note
Income and Endowments from:
Donations and legacies
Charitable activities
Total income
Expenditure on:
Charitable activities
Total expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
14

All of the charity's activities derive from continuing operations during the above two periods.

The funds breakdown for 2021 is shown in note 14.

The notes on pages 18 to 28 form an integral part of these financial statements.

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

Tŷ Cerdd - Music Centre Wales

(Registration number: 1152853) Balance Sheet as at 31 March 2022

2022
2021
Note £
£
Fixed assets
Tangible assets
8		 45,543
50,544
Current assets
Stocks
9		 12,926
10,944
Debtors
10		 76,437
138,276
Cash at bank and in hand
11		 223,319
180,070
312,682
329,290
Creditors: Amounts fallingdue within oneyear
12
(113,304)
(170,948)
Net currentassets
199,378
158,342
Netassets
244,921
208,886
Funds of the charity:
Restricted income funds
Restricted funds
14		 122,276
76,962
Unrestricted income funds
Unrestricted funds 122,645
131,924
Total funds
14
244,921
208,886

The financial statements on pages 15 to 28 were approved by the trustees, and authorised for issue on 7 December 2022. and signed on their behalf by:

......................................... Steph Power Chair

The notes on pages 18 to 28 form an integral part of these financial statements.

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

Tŷ Cerdd - Music Centre Wales

Cash Flow Statement for the Year Ended 31 March 2022

2022
2021
Note £
£
Cash flows from operating activities
Net cash income
36,035
62,653
Adjustments to cash flows from non-cash items
Depreciation 9,641
6,688
45,676
69,341
Working capital adjustments
Increase in stocks
9		 (1,982)
(2,812)
Decrease/(increase) in debtors
10		 61,839
(100,690)
(Decrease)/increase in creditors
12		 (57,644)
83,718
Net cash flows from operating activities
47,889
49,557
Cash flows from investing activities
Purchase of tangible fixed assets
8		 (4,640)
(17,034)
Net increase in cash and cash equivalents
43,249
32,523
Cash and cash equivalents at 1 April
180,070
147,547
Cash and cash equivalents at 31 March
223,319
180,070

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 18 to 28 form an integral part of these financial statements.

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2022

1 Accounting policies

Statement of compliance

The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom 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. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

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.

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2022

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s 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.

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2022

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.

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2022

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's 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.

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

2 Income from donations and legacies

2
Income from donations and legacies
Unrestricted
funds
Total
Total
General
2022
2021
£
£
£
Donations and legacies;
Donations from individuals 2,471
2,471
30
Legacies 5,000
5,000
-
7,471
7,471
30

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2022

3 Income from charitable activities

3
Income from charitable activities		 3
Income from charitable activities
Unrestricted
funds
Restricted
Total
Total
General
funds
2022
2021
£
£
£
£
Library hire charges
718
-
718
265
Recording studio
41,973
-
41,973
61,116
Arts Council of Wales Revenue Grant
206,775
-
206,775
232,753
Arts Council of Wales Lottery Grant 7,800
148,200
156,000
90,000
CoDI Project 3,070
58,434
61,504
59,674
Wales Arts International -
-
-
1,000
Affricerdd -
6,640
6,640
7,454
Welsh Government Emergency
Funds -
-
-
50,000
Tapestri -
49,140
49,140
-
International Events -
3,341
3,341
-
Wales Arts International -
29,988
29,988
-
Arts Active Trust -
10,000
10,000
-
WJCB -
1,463
1,463
-
Jerwood Arts -
13,163
13,163
-
260,336
320,369
580,705
502,262

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2022

4 Analysis of governance and support costs

Support costs allocated to charitable activities

Support costs allocated to charitable activities Support costs allocated to charitable activities
Basis of allocation
Staff costs
£
Premises
costs
including
depreciation
£
Total
2022
£
Total
2021
£
Development of Welsh Music
Percentage time
spent
38,558
13,454
52,012
47,857

Governance costs

Governance costs
Unrestricted
funds
Total
Total
General
2022
2021
£
£
£
Audit fees
Audit of the financial statements 3,070
3,070
3,070
Other fees paid to auditors 1,700
1,700
1,550
Legal fees 2,477
2,477
206
7,247
7,247
4,826

5 Trustees remuneration and expenses

During the year the charity made the following transactions with trustees:

Steph Power

£2,477 (2021: £206) of expenses were reimbursed to Steph Power 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.

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2022

6 Staff costs

The aggregate payroll costs were as follows:

6
Staff costs
The aggregate payroll costs were as follows:
2022
2021
£
£
Staff costs during the year were:
Wages and salaries 148,454
140,456
Social security costs 13,970
8,224
Pension costs 30,367
26,323
192,791
175,003

The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:

2022
2021
No
No
Development of Welsh Music 4
4
Administration and support 2
1
6
5

No employee received emoluments of more than £60,000 during the year

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2022

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 2021
54,619
31,920
86,539
Additions
4,640
-
4,640
At 31 March 2022
59,259
31,920
91,179
Depreciation
At 1 April 2021
27,057
8,938
35,995
Charge for theyear
8,364
1,277
9,641
At 31 March 2022
35,421
10,215
45,636
Net book value
At 31 March 2022
23,838
21,705
45,543
At 31 March 2021
27,562
22,982
50,544
9
Stock
2022
2021
£
£
Stocks 12,926
10,944
10
Debtors
2022
2021
£
£
Trade debtors 1,090
9,566
Prepayments 73,947
128,710
Other debtors 1,400
-
76,437
138,276

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2022

11
Cash and cash equivalents
2022 2021
£ £
Cash at bank 223,319 180,070
12
Creditors: amounts falling due within one year
2022 2021
£ £
Trade creditors 75,328 132,647
Accruals 37,976 38,301
113,304 170,948
2022 2021
£ £
Deferred income at 1 April 2021 (10,000) -
Resources deferred in the period (13,772) (10,000)
Amounts released frompreviousperiods 5,000 -
Deferred income at year end (18,772) (10,000)

13 Obligations under leases and hire purchase contracts

Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

2022
£
2021
£
14,625
14,625
-
14,625
14,625
29,250
478
478
2,627
2,627
3,105
3,105
Land and buildings
Within one year
Between one and fiveyears
Other
Within one year
Between one and fiveyears

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2022

14
Funds
Balance at 1 April
Incoming
Resources
Balance at 31
2021
resources
expended
March 2022
£
£
£
£
Unrestricted funds
General
General Fund 131,924
269,475
(278,754)
122,645
Restricted funds
Grand piano 19,631
-
(1,277)
18,354
CoDi Project 35,186
58,434
(71,597)
22,023
Lottery 22,145
148,200
(123,478)
46,867
Affricerdd -
6,640
(6,363)
277
International Events -
3,342
(1,388)
1,954
Wales Arts International -
29,988
(16,775)
13,213
Arts Active Trust -
10,000
(3,000)
7,000
WJCB -
14,625
(14,625)
-
Tapestri -
49,140
(36,552)
12,588
Total restricted funds
76,962
320,369
(275,055)
122,276
Total funds
208,886
589,844
(553,809)
244,921

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2022

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2022

Balance at 1 April
Incoming
Resources
Balance at 31
2020
resources
expended
March 2021
£
£
£
£
Unrestricted funds
General
General Fund 99,071
296,860
(264,007)
131,924
Restricted
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 - Stabilisation
Grant -
10,978
(10,978)
-
Total restricted funds
47,162
205,432
(175,632)
76,962
Total funds
146,233
502,292
(439,639)
208,886

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.

15 Analysis of net assets between funds

15
Analysis of net assets between funds
Unrestricted
Total funds at 31
funds
Restricted
March
General
funds
2022
£
£
£
Tangible fixed assets 27,189
18,354
45,543
Current assets 208,760
103,922
312,682
Current liabilities (113,304)
-
(113,304)
Total net assets
122,645
122,276
244,921

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