2023-03-31-accounts

Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

Charity registration number: 1152853

Tŷ Cerdd - Music Centre Wales

Annual Report and Financial Statements

for the Year Ended 31 March 2023

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

Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

Contents

Trustees' Report	1 to 10
Independent Auditors' Report	11 to 13
Statement of Financial Activities	14
Balance Sheet	15
Cash Flow Statement	16
Notes to the Financial Statements	17 to 27

Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

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 2023.

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:

• 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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Tg Cerdd - Muslc Centre Wales Annual Report for the Year Ended 31 March 2023 Cornerstones / Conglfeini Artists IArtistiaid We place artists at the heart of 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 hi7mrywiaerh. Rydym yn ymrwymedig i hybu cyfleoedd i greu cerddorioeth 6ymreig, ar drows ystod o genres. Cornrnunitie51 Cymunedau The communities across Wales making music are our lifeblood. Y cymunedou sy'n cerddora ur drGws 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 remove barriers, be they of race. 8ender, gender-identity, disability, age, geography, sexualityi religion, langua8e, poverty. Rydym or dan dr05 gydrGddoldeb, i urt15tiaidu chynulleidfuoedd, ymdrechu i gael gworedu rhwy5truu, boed orsoil hil, rhywedd, hunanioeth rywedd, anobledd, oedron, daearyddioeth, rhFwioldeb, crefydd, iaith neu dlodi. Kindness I Caredigrtwydd Kindness and compassion are central to our organisationèl culture, and to all our engagement. Moe coredignvyddo thrugrjreddyn gonolog i ddiwylliont ein selydliod t7c i'n holl weithgonvch ymgysylltu. Partnerships I Partneriaethau We collabor3te across these cornerstones with organi53tions and partners to develop opportunities and improve access for 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 environment 15 fundamental. and we acknowledge our responsibility to respond to the global climate emergenry. Motersylfvenol yw omddiffyn yromgylchedd ac rydym yn cydn(Tbodein cyffifoldeb i ymoteb i'rar4yfvn4 hin5cwdd byd-eung.

Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

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

2022-23 at Tŷ Cerdd saw a wide range of activity – from development work with music-creators and artists and sector support, to distribution of funding and delivery of priorities for our funders and partners. Our motto “if you’re making music in Wales, it’s Welsh music” underpinned the entire programme of work.

The CoDi (Composer Development Initiative) programme, remains a vital part of Tŷ Cerdd's commitment to the development of music-creators and is at the forefront of our strategic support for Welsh music. Using an iterative approach to develop new pathways, Tŷ Cerdd builds on the success and learnings from previous years to tackle barriers to participation and development for targeted groups, genres or to demographics. With continuing support from the Arts Council of Wales, PRS Foundation (through their UK-wide Talent Development Programme) and RVW Trust, CoDi 2022-23 included:

• Somali Dance In partnership with Hayaat Women Trust, National Dance Company Wales and Literature Wales, this pathway offered support to women who wanted to develop their practice of the discipline. Workshops were held under the direction of four lead artists – dancer Muna Isman, singer Ifraah Abdilahi, drummer Faduma Jama, poet Umulkhayr Mohamed. The pathway ended with a sharing-performance of the work attended by over 100 women and girls.

• Organ@Soar was an artist-development pathway to writing for organ for Welsh and Wales-based music-creators of any genre. Over a series of workshops, six music-creators explored techniques and approaches with lead composer Richard Baker and lead performer James McVinnie, culminating with a successful premiere held at Theatr Soar. Participants: Owain Hughes, Andrew Cusworth, Hannah Paloma, Dafydd Dabson, Heledd C Evans, David John Roche

• Bwthyn Sonig is Tŷ Cerdd’s partnership approach to working with and enabling learning-disabled music-creators – run in partnership with Canolfan Gerdd William Mathias (Caernarfon), Touch Trust (Cardiff), lead artists Teifi Emerald and Elin Taylor, and Glasgowbased partner Sonic Bothy. First run as an ACW-funded Connect & Flourish project, the

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

next phase of the project involved discussions on working flexibly, decision making, navigating payment and accreditation for disabled artists’ work, terminology and creating safe spaces. Talks and workshops featured community musician Sarah Fisher, Creative Director of Sonic Bothy, Claire Docherty, and musician/music-creator Teifi Emerald.

• CoDi Mentoring Circle – six mid-career music-creators were brought together to share practice and learning.

• Participating artists : Ashley John Long, Eloise Gynn, Francesca Simmons, Joseph Davies, Lleuwen Steffan, Richard Baker.

• CoDi NightMusic continued to provide opportunities for composers to write for the series of NightMusic performances presented at St David’s Hall, Cardiff – and to have their works published and recorded. This year’s commissions were:

• Niamh O’Donnell – for soprano Héloïse Werner and harpist Anne Denholm Tayla-Leigh Payne – for organist James McVinnie

• Ethnie Foulkes – for soprano Ruby Hughes and pianist Huw Watkins

• CoDi Off-Grid – a network for experimental sound-artists and music-creators. This year’s activity included a collaboration with the Welsh Experimental Music Alliance to present New Expectations – an experimental music conference and an opportunity to work collaboratively and share practice. At Bangor Music Festival Ash Cooke and Chris Parfitt ran Listen/Play/Paint, a cross disciplinary workshop exploring free improvisation through music and painting. Webinars for the network saw sessions by experimental vocalist/musiccreator Elaine Mitchener, sound artist Freya Dooley, and John Harvey with an overview on his sound work on Welsh coalmining and Penallta Colliery.

• CoDi Interact continued to run workshops aimed at Welsh/Wales-based music-creators. The webinars covered the subjects Sell Your Music, Not your Soul – Retaining artistic identity in a commercial world, with Jordan Rees, Self Releasing – Matthew Whiteside, Natural Elements and Human Imprints – Using field recording in an orchestral piece – Colin Riley in conversation with Matthew Wood.

• CoDi Cân – a collaboration with the National Eisteddfod, supporting young artists of colour to develop new songs in the Welsh language. Participating artists performed their new songs on the #Encore stage at the Eisteddfod in Tregaron, alongside their mentors Eädyth and Lily Beau, who presented the event.

The ongoing Music Industry 101 sessions continued the contribution to the Music and Race in Wales strategy which underpins our work. The sessions are open to all and led by music-creators of colour. In 2022-23 the webinars were led by Aisha Kigwalilo and Natalie Jones, and focussed on applying for artist showcases and funding opportunities.

Polskerdd, a programme of music-making (led by two Wales-based artists Ma ł gola Gulczynaksa and Sarah Zyborska) was a partnership with Penparcau Community Forum and Aberystwyth Arts Centre – engaging members of the community (including the Polish diaspora).

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

• Create – resourcing the creation of new work by music-creators of any genre

• Engage – funding a range of activity, from live performance and workshops to community collaborations

• Inspire – supporting the development of work with participants aged under 26

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

From leisure-time and community groups to professional work in a range of diverse settings, over £145k of funds was distributed in 99 awards to organisations (23 Create, 42 Engage, 34 Inspire). All schemes continue to be over-subscribed each round, and our relationships with Disability Arts Cymru and Race Council Cymru have been an ongoing part of a commitment to ensuring representation on our funding panels.

Working with Making Music, we organised a meeting with Deputy Minister for Arts, Sport and Tourism Dawn Bowden MS, building on the connection we made during the pandemic, to allow leisure-time and community groups to hear about the Welsh Government’s work in the sector and to provide an opportunity to raise issues relevant to their groups.

In 2022-23 we continued work on Tŷ Cerdd Records with a number of albums for which planning had started prior to the COVID-19 pandemic coming to fruition . Releases during this period were:

• Soliloquies for Harp – Welsh harpist Gwenllian Llŷr’s captivating collection of Welsh music spanning centuries: from 18th-century harpist and composer John Parry, through Morfydd Owen and Grace Williams, to composers living in Wales today.

• 2117 / Hedd Wyn – Welsh-language opera by composer Stephen McNeff and librettist Gruff Rhys (of Super Furry Animals) is set in 2117 – 200 years after the death, in the World War I trenches, of iconic Welsh bard Hedd Wyn.

• Undod/Unity – the second album by Khamira, a Welsh-Indian outfit originally brought together in 2015 by Welsh trumpeter/music-creator Tomos Williams, features original compositions, interpretations of Welsh and traditional Indian music

• Unbroken Threads – this release features works by five British composers, performed by violinist Mary Hofman and pianist Richard Ormrod.

• Between Earth and Sea – this debut release by Trio Anima – flautist Matthew Featherstone, harpist Anneke Hodnett, and violist Rosalind Ventris – champions both brand new British music and enduring repertoire.

In January 2023 we used our newly created digital artist-led record label Sionci to release Heal Yourself , a bilingual single by Eädyth Crawford.

Tŷ Cerdd continued to work with Steve Long of independent label Signum Records on a strategy to extend our physical distribution and to review our digital distribution.

As well as publishing 3 NightMusic commissions, Tŷ Cerdd Publications activity continued to provide support to composers, as well as providing a vehicle to document new work created through the CoDi programme. 9 new publications were added to the catalogue along with Fantastic Fables by Gareth Glyn and Anni Llŷn - a songbook and resource booklet for schools.

The Tŷ Cerdd library and collection continued to provide performing groups and societies with scores for their rehearsals and performances and facilitated access to the research resource available within the archive.

We continued to develop our partnership with RWCMD and collaborated to present a series of performances on the Eisteddfod’s Encore stage. Our partnership reaches across the musical activity of the conservatoire, and this year included a number of talks as part of undergraduate and masters courses, as well as visits from students to our music collection.

Showcase Scotland Artist Development Programme : following our work in 2022 in partnership with FOCUS Wales and Trac Cymru, with funding and support from Wales Arts International, we worked to deliver the call to artists for the 2023 event – which featured Wales alongside Brittany. We supported artists VRϊ, Gwilym Bowen Rhys and Cerys Hafana (as artists selected for the Showcase) alongside a cohort of 12 other long-listed artists/bands.

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

Tŷ Cerdd continued to play a vital role in sector representation and development , within Wales and the UK, and on an international stage including:

• IAMIC (International Association of Music Centres) – an international network that continues to offer opportunities for sharing of best-practice and networking. The Tŷ Cerdd director chaired the Activities group, leading on developing work for the membership and attended the conference held in Hamburg, Bonn and Cologne in May 2022.

• ISCM (International Society for Contemporary Music) – another important network for Wales and Tŷ Cerdd. We submitted Welsh work to ISCM’s online initiative to share new work internationally; and took part in the organisation’s digital General Assembly, as well as running a call for scores to Welsh artists. Director, Deborah Keyser, represented Tŷ Cerdd at the ISCM General Assembly and World New Music Days festival in New Zealand (Auckland and Christchurch) in August 2022 (postponed from 2020). Composer Mark Bowden’s Five Memos for violin and piano was selected as the Welsh work, performed in Christchurch.

• Attendance at Classical:Next in Hannover in May 2022. Tŷ Cerdd, with funding from Wales Arts International, led the Wales representation at this event, the largest global gathering of professionals for all sectors of classical art and music.

• In partnership with Wales Arts International, Tŷ Cerdd led the Wales delegation at WOMEX in Lisbon in October 2022.

The commercial work in our studio space was impacted during this period due to the development works carried out in Wales Millennium Centre. However, we continue take part in consultation and visioning work into the creation of new Makers’ Spaces at the venue – contributing to discussion about how these spaces will enhance the activity carried out by Tŷ Cerdd and Wales Millennium Centre.

As 2022-23 closed we announced #WelshMusicAbroad with partners FOCUS Wales and Trac Cymru. Building on the work already delivered together for the ACW-funded Showcase Scotland artist development programme, the trio are moving forward together to create opportunities for artists and industry to engage music markets across the globe.

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. We saw the retirement of three long-term trustees, but recruited seven new trustees (including three under-30s) in order to strengthen representation and increase the skill profile of our board.

Financial review

Policy on reserves

As at 31 March 2023 the charity was reporting total reserves of £271,897 (2022: £244,921). Of this balance £122,004 (2022: £122,645) related to general unrestricted reserves and £149,893 (2022: £122,276) related to restricted reserves.

Of the unrestricted reserves a balance £99,327 (2022: £95,456) 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 2023

PLANS FOR FUTURE PERIODS

Plans for 2023-24 include

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

• BŴM – a pathway for four early-career artists in making outdoor music and sound that responds to themes of climate crisis, in partnership with Oxford Contemporary Music and Articulture.

• Further development of Bwthyn Sonig – moving forward the work enabling learningdisabled music creators in North and South Wales (with Canolfan Gerdd William Mathias and Touch Trust).

• Composers Studio – in partnership with UPROAR and Theatr Soar. Six early-career music-creators developing their skills in composition for 12-piece conducted ensemble, with lead composers Lynne Plowman and Richard Baker

• Tlws y Cyfansoddwr – a reboot of the National Eisteddfod’s Tlws y Cerddor – creating a pathway for three composers, with lead artist John Rea and musicians from Sinfonia Cymru.

• Pathway to the orchestra – four untrained composers learning about writing for orchestral instruments (in partnership with BBC NOW, and lead artist Lynne Plowman).

• mentoring scheme

• adding capacity and activity the Off-Grid network

• • range of professional development workshops

Releases on Tŷ Cerdd Records of:

• Grime Schumann Watkins Schumann – Odysseus Piano Trio

• • amrwd – Angharad Jenkins & Patrick Rimes

Further strategic work in Equalities, Diversity and Inclusion work, including development of CoDi Cân / Affricerdd, and the Music Industry 101 strand.

Advancement of our Lottery schemes, ensuring representation on panels, with the help of 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 WOMEX, in partnership with Wales Arts International

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

Development of the #WelshMusicAbroad partnership with FOCUS Wales and Trac Cymru.

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

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 £216,383 (2022: £206,775).

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 2023

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees

Steph Power, Chair Claire Foster (appointed 07/12/2022) Christina Macaulay (appointed 22/06/2022) Christopher Parsons (retired 07/12/2022) Gareth Churchill (appointed 23/03/2023) Gillian Green (retired 07/12/2022) Giselle Dugdale (appointed 21/09/2022) Graham Howe Harriet Wybor John Hywel Morris Litang Shao (appointed 07/12/2022) Klaudia Zawadka (appointed 22/06/2022) Niamh O’Donnell (appointed 21/09/2022) Rachel Ford-Evans Sara Beer (retired 07/12/2022) Tumi Williams

Staff

Deborah Keyser, Director Abby Charles, Head of Finance and Administration Ethan Davies, Publishing & Research Officer James Clarke, Recording Studio Manager & Producer Laila Khan, Administrative Assistant Matthew Thistlewood, Head of Content Shakira Mahabir, Relationships & Communications Manager

Principal Office

The Wales Millennium Centre Bute Place Cardiff CF10 5AL

Charity Registration Number

1152853

Bankers

HSBC, Cardiff

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 2023

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 13 December 2023 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 2023

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 2023, which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is 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 2023 and of its incoming resources and application of resources, including its income and expenditure, 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 responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

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:

• 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 10, 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.

Auditor 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We corroborated our enquiries of management by review of correspondence with HMRC, The Charity Commission and other regulatory bodies.

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach.

Based on the results of our risk assessment we designed our audit procedures to identify and address material misstatements in relation to fraud.

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.

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.

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

......................................

Mr Andrew Hill FCCA ACA DChA BFP (Senior Statutory Auditor)

For and on behalf of HSJ Audit Limited, Statutory Auditor

Severn House

Hazell Drive

Newport

NP10 8FY 19/12/2023 Date:.............................

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

Tŷ Cerdd - Music Centre Wales

Statement of Financial Activities for the Year Ended 31 March 2023

Statement of Financial Activities for the Year Ended 31 March 2023	Statement of Financial Activities for the Year Ended 31 March 2023
Unrestricted funds Restricted funds Total 2023
Note £ £ £
Income and Endowments from:
Donations and legacies 5,235 - 5,235
Charitable activities 281,605 290,484 572,089
Other income 1,328 - 1,328
Total income 288,168 290,484 578,652
Expenditure on:
Charitable activities (288,809) (262,867) (551,676)
Total expenditure (288,809) (262,867) (551,676)
Net (expenditure)/income (641) 27,617 26,976
Net movement in funds (641) 27,617 26,976
Reconciliation of funds
Total funds brought forward 122,645 122,276 244,921
Total funds carried forward 14 122,004 149,893 271,897
Unrestricted funds Restricted funds Total 2022
Note £ £ £
Income and Endowments from:
Donations and legacies	7,471 - 7,471
Charitable activities	260,336 320,369 580,705
Other income	1,668 - 1,668
Total income
	269,475 320,369 589,844
Expenditure on:
Charitable activities	(278,754) (275,055) (553,809)
Total expenditure
	(278,754) (275,055) (553,809)
Net (expenditure)/income
	(9,279) 45,314 36,035
Net movement in funds
	(9,279) 45,314 36,035
Reconciliation of funds
Total funds brought forward
	131,924 76,962 208,886
Total funds carried forward 14
	122,645 122,276 244,921

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 14.

The notes on pages 17 to 27 form an integral part of these financial statements.

Page 14

Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

Tŷ Cerdd - Music Centre Wales

(Registration number: 1152853) Balance Sheet as at 31 March 2023

(Registration number: 1152853) Balance Sheet as at 31 March 2023	(Registration number: 1152853) Balance Sheet as at 31 March 2023
2023 2022
Note £ £
Fixed assets
Tangible assets 8	39,754 45,543
Current assets
Stocks 9	13,439 12,926
Debtors 10	67,126 76,437
Cash at bank and in hand 11	213,750 223,319
	294,315 312,682
Creditors: Amounts fallingdue within oneyear 12
	(62,172) (113,304)
Net currentassets
	232,143 199,378
Netassets
	271,897 244,921
Funds of the charity:
Restricted income funds
Restricted funds 14	149,893 122,276
Unrestricted income funds
Unrestricted funds	122,004 122,645
Total funds 14
	271,897 244,921

The financial statements on pages 14 to 27 were approved by the trustees, and authorised for issue on 13 December 2023 and signed on their behalf by:

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

The notes on pages 17 to 27 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 2023

Tŷ Cerdd - Music Centre Wales

Cash Flow Statement for the Year Ended 31 March 2023

Cash Flow Statement for the Year Ended 31 March 2023	Cash Flow Statement for the Year Ended 31 March 2023
2023 2022
Note £ £
Cash flows from operating activities
Net cash income
	26,976 36,035
Adjustments to cash flows from non-cash items
Depreciation	8,733 9,641
	35,709 45,676
Working capital adjustments
Increase in stocks 9	(513) (1,982)
Decrease in debtors 10	9,311 61,839
Decrease in creditors 12	(51,132) (57,644)
Net cash flows from operating activities
	(6,625) 47,889
Cash flows from investing activities
Purchase of tangible fixed assets 8	(2,944) (4,640)
Net (decrease)/increase in cash and cash equivalents
	(9,569) 43,249
Cash and cash equivalents at 1 April
	223,319 180,070
Cash and cash equivalents at 31 March
	213,750 223,319

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

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2023

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 2023

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.

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 2023

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2023

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 2023 2022
	£ £ £
Donations and legacies;
Donations from individuals	235 235 2,471
Legacies	5,000 5,000 5,000
	5,235 5,235 7,471

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2023

3 Income from charitable activities

	Unrestricted
	funds Restricted Total Total
	General funds 2023 2022
	£ £ £ £
Library hire charges	1,481 - 1,481 718
Recording studio	49,941 - 49,941 41,973
Arts Council of Wales
Revenue Grant	216,383 22,992 239,375 206,775
Arts Council of Wales Lottery
Grant	7,800 148,200 156,000 156,000
CoDI Project	6,000 64,170 70,170 61,504
Affricerdd	- - - 6,640
Tapestri	- 24,570 24,570 49,140
International Events	- 30,552 30,552 3,341
Wales Arts International	- - - 29,988
Arts Active Trust	- - - 10,000
WJCB	- - - 1,463
Jerwood Arts	- - - 13,163
	281,605 290,484 572,089 580,705

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2023

4 Analysis of governance and support costs

Support costs allocated to charitable activities

Basis of	Premises costs including Total Total
	Staff costs depreciation 2023 2022
allocation	£ £ £ £
Development of Welsh Percentage
Music time spent	40,041 11,854 51,895 52,012

	Unrestricted
	funds	Total		Total
	General	2023		2022
	£	£		£
Audit fees
Audit of the financial statements	3,257		3,257	3,070
Other fees paid to auditors	1,754		1,754	1,700
Legal fees	1,158		1,158	2,477
	6,169		6,169	7,247

5

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

Steph Power

£Nil (2022: £2,477) 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 2023

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2023

6 Staff costs

The aggregate payroll costs were as follows:

6 Staff costs The aggregate payroll costs were as follows:
	2023 2022
	£ £
Staff costs during the year were:
Wages and salaries	153,578 148,454
Social security costs	14,876 13,970
Pension costs	31,754 30,367
	200,208 192,791

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:

	2023 2022
	No No
Development of Welsh Music	5 4
Administration and support	2 2
	7 6

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

Page 22

Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2023

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 2022 59,259 31,920 91,179
Additions 2,944 - 2,944
At 31 March 2023 62,203 31,920 94,123
Depreciation
At 1 April 2022 35,421 10,215 45,636
Charge for theyear 7,456 1,277 8,733
At 31 March 2023 42,877 11,492 54,369
Net book value
At 31 March 2023 19,326 20,428 39,754
At 31 March 2022 23,838 21,705 45,543
9 Stock
	2023 2022
	£ £
Stocks	13,439 12,926
10 Debtors
	2023 2022
	£ £
Trade debtors	24,175 1,090
Prepayments	41,551 73,947
Other debtors	1,400 1,400
	67,126 76,437
11 Cash and cash equivalents
	2023 2022
	£ £
Cash at bank	213,750 223,319

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2023

12 Creditors: amounts falling due within one year

12 Creditors: amounts falling due within one year
	2023		2022
	£		£
Trade creditors		55,952	75,328
Other creditors		2,080	-
Accruals		4,140	37,976
		62,172	113,304
	2023		2022
	£		£
Deferred income at 1 April 2022		(18,772)	(10,000)
Resources deferred in the period		-	(13,772)
Amounts released frompreviousperiods		18,772	5,000
Deferred income atyear end		-	(18,772)

13 Obligations under leases and hire purchase contracts

Operating lease commitments

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

	2023 2022
	£ £
Land and buildings
Within oneyear	14,625 14,625
Other
Within one year	- 478
Between one and fiveyears	- 2,627
	- 3,105

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2023

14 Funds
	Balance at 1 Incoming Resources Balance at 31
	April 2022 resources expended March 2023
	£ £ £ £
Unrestricted funds
General
General Fund	122,645 288,168 (288,809) 122,004
Restricted funds
Grand piano	18,354 - (1,277) 17,077
CoDi Project	22,024 64,170 (40,830) 45,364
Lottery	46,867 148,200 (153,877) 41,190
Affricerdd	277 - (277) -
International Events	1,954 30,552 (29,133) 3,373
Arts Active Trust	6,999 - (5,576) 1,423
Tapestri	12,588 24,570 (17,836) 19,322
Showcase Scotland	13,213 22,992 (14,061) 22,144
Total restricted funds
	122,276 290,484 (262,867) 149,893
Total funds
	244,921 578,652 (551,676) 271,897

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2023

	Balance at 1 Incoming Resources Balance at 31
	April 2021 resources expended March 2022
	£ £ £ £
Unrestricted funds
General
General Fund	131,924 269,475 (278,754) 122,645
Restricted
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

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.

15 Analysis of net assets between funds

15 Analysis of net assets between funds
	Unrestricted Total funds at
	funds Restricted 31 March
	General funds 2023
	£ £ £
Tangible fixed assets	22,677 17,077 39,754
Current assets	161,499 132,816 294,315
Current liabilities	(62,172) - (62,172)
Total net assets
	122,004 149,893 271,897

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Tŷ Cerdd - Music Centre Wales Annual Report for the Year Ended 31 March 2023

Tŷ Cerdd - Music Centre Wales

Notes to the Financial Statements for the Year Ended 31 March 2023

	Unrestricted Total funds at
	funds Restricted 31 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

Page 27