Charity registration number: 1153716 

## Nottingham Music Service 

Annual Report and Financial Statements for the Year Ended 31 March 2021 

Community Accounting Plus Units 1 and 2 North West 41 Talbot Street Nottingham NG1 5GL 



## **Nottingham Music Service** 

## **Contents** 

|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 8|
|Statement of Trustees' Responsibilities|9|
|Independent Examiner's Report|10|
|Statement of Financial Activities|11 to 12|
|Balance Sheet|13|
|Cash Flow Statement|14|
|Notes to the Financial Statements|15 to 25|





## **Nottingham Music Service** 

## **Reference and Administrative Details** 

**Trustees** James Gibbons David Wesker Amanda Dawson Tamba Roy David Mellen Nigel Cooke **Senior Management Team** Ian Burton, CEO Michaell Aspinall, Business Operations and Strategy Manager **Principal Office** The Litehouse Crocus Street Nottingham NG2 3DP **Charity Registration Number** 1153716 **Bankers** CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ **Independent Examiner** John O'Brien, employee of Community Accounting Plus Units 1 and 2 North West 41 Talbot Street Nottingham NG1 5GL 

Page 1 



## **Nottingham Music Service** 

## **Trustees' Report** 

The trustees present the annual report together with the financial statements of the charity for the year ended 31 March 2021. 

## **Trustees** 

James Gibbons 

David Wesker 

Amanda Dawson 

Tamba Roy 

David Mellen 

Nigel Cooke 

Barbara Morgan (resigned 4 May 2021) 

## **Objectives and activities** 

## _**Objects and aims**_ 

The Charitable Objects of the Charity, as taken from the constitution are to advance the education, accessibility and enjoyment of music and the arts for children and young people. 

We believe that music makes a difference. As a registered charity and lead partner for the Nottingham Music Education Hub, we are committed to making music more accessible and inclusive. We support young people from across the city to develop their musical skills, and participate in diverse ensembles and performances, contributing to the life of our great city. 

Nottingham City has a very tight inner-city boundary and is one of the most deprived areas in the country where residents have the lowest household disposable income in the UK according to the Office for National Statistics and 38% of children live in income deprived households. 

Page 2 



## **Nottingham Music Service** 

## **Trustees' Report** 

## _**Objectives, strategies and activities**_ 

Prior to 2002, music making in the city was very limited, with only 15% of the schools providing an opportunity to learn to play an instrument. Nottingham Music Service (NMS) started its work on principles of access, inclusion, quality, progression and civic engagement. Our strategies are designed to include children of all backgrounds, including those who do not have support for music making. 

We provide whole class instrumental teaching, and in 2020/21 74% of city primary schools received a First Access programme (which includes Whole Class Ensemble teaching and In Harmony) run or supported by NMS. We also provide progression routes so that young people can continue their music making outside of school and advance as musicians. Our Area Bands are beginner ensembles provided after school, while our Saturday Music School provides a clear progression route into one of our orchestras (RHYO InterConnect and our flagship Robin Hood Youth Orchestra). 

Whilst the face-to-face delivery of our programmes has been severely affected in 2020/21 by the global pandemic, we are proud that we have been able to maintain the majority of our provision online. Once we return to face to face teaching we will be delivering a revised programme that support us to meet our charity objectives. 

Key programmes include: 

• Whole Class Ensemble Teaching (WCET) programme — a year of ensemble teaching in whole classes on a range of instruments; 

• Music Camps — two day residentials for post-WCET pupils to kick start their learning into year 5 and beyond (This was held online during 2020 and as a smaller, one day face to face event in 2021 but we hope to return to our established model in 2022); 

• Area Bands — a network of 7 Area Bands across the city, available for pupils to access immediately after their WCE year and online streamed; 

• Nottingham Music School — operating on Saturday mornings and Thursday evenings providing ensemble opportunities through the Robin Hood Youth Orchestra family of ensembles; 

• Singing Strategy — a programme of targeted schools provision; 

• Continual Professional Development (CPD) and events; 

• Exam Strategy — bespoke syllabus developed by NMS staff and accredited by Music Teachers Board (MTB). Targeted online support sessions for large scale Grade 1 and Grade 2 entries across the city; 

• Events — an annual programme of events including Christmas in the City, Light Night, Noise from the Next Generation, Sing City, the Great Orchestra Experiment, the Summer Sing, targeted workshops and visiting ensembles programme. (We delivered the majority of these events online this year but hope to return to live events in 2022). 

In Harmony - Nottingham Music Service delivers one of only six In Harmony programmes across England. Inspired by the principles of Venezuela's inspirational El Sistema, In Harmony is a national programme that aims to inspire and transform the lives of children in deprived communities, using the power and disciplines of community-based orchestral music-making. Initially focussed on 4 primary schools across the city, In Harmony is now extended to bridge the gap between IH schools and the WCET programme. 

Page 3 



## **Nottingham Music Service** 

## **Trustees' Report** 

## _**Achievements and performance**_ 

Whilst the global pandemic has meant that our usual achievements measured by Grade exams and numbers of children being taught hasn’t happened this year we have had other major achievements. As a board we continue to be hugely impressed by the skill, commitment, and energy from such a small team to deliver the breadth and quality of events and activity. 

As an organisation we have been on a steep learning curve with how best to support our pupils during lockdown. Some of our proudest achievements are: 

• Since March 2020 we have produced over 250 video lessons for pupils to access and continue to learn their instrument at home; 

• Run a nine-hour online NMS music festival and produced lockdown performances that have been commented on by members of the public globally; 

• We have received over 50,000 views of our videos and 6000 new users have accessed our website, all under lockdown conditions; 

• One of the proudest achievements for the organisation is the continuing of our RHYO rehearsal every Saturday morning, be it in a virtual capacity. Members of RHYO have been open about how much this has meant to them and that in some cases it has provided the structure and support that they vitally needed during the isolation of lockdown; 

• During the third lockdown we delivered online lessons in the morning and afternoon each day with an average weekly attendance of to over 650 pupils taking part from 32 primary schools and home; 

• We edited together a streamed version of our Christmas in the City concert with over 2000 taking part. The concert had over 4000 people viewing its YouTube premier. 

## _**Public benefit**_ 

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. 

Page 4 



## **Nottingham Music Service** 

## **Trustees' Report** 

## **Chairs Report 2020/21** 

The Music Service is now returning to schools, and we are teaching to full classrooms again with minimal barriers in place. When I recall the situation we were in last year, in the midst of lockdown, it is so positive to be able to write these words. It has been heartening to see the enthusiasm that schools and pupils have welcomed us back with. We now are to hope that lockdown was a pause in our lives and learning, rather than the full stop that was feared. 

However, we must be mindful of the toll that lockdown has had on us all. We are now feeling the long-term impact that the isolation of lockdown has had on us all, especially children, including their mental health, motivation and learning. It is imperative that the Music Service responds to these issues and offers a positive, inclusive service that addresses the needs and concerns of children. To this end we have created the role of a Pastoral Support Coordinator who is responsible for promoting the well-being of our pupils and of seeking their views through feedback. This will enable us to respond to any concerns or barriers that children may have either personally or when returning to playing as part of a large group. 

Although there has been sadness and isolation during lockdown, I firmly believe that children will have built up skills and resilience that will make them far stronger than before. I am hoping they will be part of a generation that have got through the mundanity of lockdown and then exploded back out into the world with a pent-up creative energy and zest for life that has been put on hold for nearly two years. Their friendships will be so much stronger for having shared the collective isolation and uncertainty of the past 18 months. I believe that they will be part of a generation that takes their experience and focuses them into the arts; aided by all the strength and resourcefulness they are learning at the moment, to create beautiful experiences for all of us to enjoy. If the children of the second world war can write music that we still listen to 80 years later and walk on the moon, I am excited to experience all that will be achieved by the children we teach today. 

As with all organisations we have had to adapt and change during the covid pandemic. As a service and staff team we have learnt new skills that make us far more adaptable than before. When we moved our teaching online, we were able to deliver lessons in the morning and afternoon each day with an average weekly attendance of to over 650 pupils taking part from 32 primary schools and home. Taking the skills we have learnt from delivering these lesson we are currently exploring how we can utilise technology to break down barriers to accessing lessons even further (Including: geographical, financial, transport) and are including a digital streaming element to all of our smaller ensembles allowing access from wherever a student is located within the city. 

One of the key parts of the music service is our wide range of events that we deliver over the year. These add a focal point to our teaching and provide a unique opportunity for children to play in public spaces or on stages and for parents to see the result of all the hard work and practice. We have keenly felt the effect of not being able to deliver live events over the past 18 months. I am proud of how we have evolved our concerts to become online events. The Christmas in the City concert had over 2000 children taking part, including the videos created by schools. The combined viewing figure is now 5348 people viewing its YouTube premier. This highlights how new technology can break down barriers as we are always over subscribed for audience tickets, so it enabled all parents to watch their children perform. 

An inspiring example of how we are embracing this new way of working for the positive is when we recently worked in partnership with Nottingham University and Nottingham Castle. On a beautiful summer evening RHYO played a one-hour concert (Their first in over 18 months) from the newly refurbished castle grounds. Nottingham University filmed the event in broadcast quality and also live streamed it over YouTube. During the live event we had over 1000 people watching and since then the footage has been viewed a further 500 times. This is far more than we could have ever accommodated as a live audience and means that the members of RHYO have a permanent reminder of them playing in a unique setting. 

Page 5 



## **Nottingham Music Service** 

## **Trustees' Report** 

During the past year it became apparent that we would not be returning to our traditional methods of teaching that included pupils sharing brass and woodwind instruments. We were aware that we would need to increase our stock of instruments to enable every pupil learning one of these instruments to have their own. To enable us to purchase more instruments we applied to the Arts Council’s Cultural Recovery Fund that was set up to help arts organisations adapt to the added pressures that lockdown brought. We were very pleased to have been awarded £120,000 which helped us to purchase over 1100 instruments to be used in schools. This has meant that we can continue to teach brass and woodwind instruments in schools and that pupils now have their own instruments to practise with. 

We are in the position where we are now delivering our services in more schools across the city than ever before, including secondaries. This is a testament to our staff team’s dedication with delivering such a high-quality service during lockdowns. However, we anticipate that there may be difficult decisions over the next couple of years, due to funding restrictions, but we are forecasting and trialling new and more efficient ways of working and delivering our ensembles, to address this. 

All of the achievements I have highlighted and our successes over the past year would not have been possible without the dedication of our staff team and Board members and I would like to take this opportunity to thank them all for everything they have done over the past 12 months. I would also like to thank Barbara Morgan who stood down from the Board this year. Her input and HR expertise has been invaluable to the charity, and we wish her well for the future. 

This organisation continues to inspire and achieve during a unique global situation, and I am proud of the extraordinary efforts and resolve shown by all staff, children, families, and schools in the face of these unprecedented times. It is only through all their efforts that we have been able to achieve all our successes this year. 


James Gibbons 

Chair of Trustees 

Nottingham Music Service 

September 2021 

Page 6 



## **Nottingham Music Service** 

## **Trustees' Report** 

## **Financial review** 

The past year has been a particularly difficult year in regards to financial planning. We had concerns that schools would withhold payments during lockdown due to us not being able to deliver the service in schools and their budgets being stretched. This concern was alleviated by the DfE stipulating that all schools should continue to pay all external contractors, as their budgets were not being reduced. As we were able to continue our provision online and receive an income we did not have to furlough any staff during 2020/21. 

In August 2020 we submitted a bid to the Arts Council’s Cultural Recovery Fund. We were grateful to be awarded £120,000 to be used towards the purchase of new brass and woodwind instruments. The need for the purchase of these instruments was highlighted by schools indicating that our previous delivery model of children sharing instruments would no longer be sustainable. If we were unable to provide individual instruments there was a genuine concern that schools would not buy our teaching packages in unless we could offer each child their own instrument. The grant enabled us to do this and meant that no school cancelled their contract with us. 

## _**Policy on reserves**_ 

The trustees review the level of reserves at each quarterly management meeting and review policy and action required regarding reserve levels at year-end to build into the budget and project planning for the coming financial year. Due to the current Covid lockdown and the implications on teaching in schools it is vital that we utilise the reserves to ensure the long term future of the organisation. This is something that the Board discuss at each meeting are review the use of reserves on an ongoing basis. 

The trustees have reviewed the nature of anticipated income and expenditure of the Charity, particularly with regards to the ongoing financial obligations of the existing programme of activity, administrative overheads and employment contracts of staff. The trustees consider that in order to safeguard the future of the charity or to be able to settle any liabilities in the event of its closure, reserves are ring-fenced to cover the following liabilities in the case of wind up: 

1. Staff notice period pay (between 4 and 12 weeks) for NCC and Charity Employees; 

2. Winding up of other on-going commitments (such as rent and venue hire); 

3. Redundancy pay for Charity Employees; 

4. Redundancy pay for NCC Employees; 

5. Pension Strain and Underfunding for NCC Pension Fund. 

The trustees have set aside a reserve of £200,000 to cover the areas listed above. In addition, the trustees have identified an additional fund of £40,000 to support organisational development (As of 31st March 2021 £16,520 remains of the Development Fund), with a focus on income generation and a ring fenced fund of £300,000 for the purchase of a charity base and instrument storage. 

## The balance of the General fund at 31st March 2021 is £228,344 

The amounts of restricted and designated reserves at 31st March 2021 is £750,015 comprising of £233,495 in fixed assets, the £16,520 remaining development fund, the £200,000 contingency fund and £300,000 building purchase, as detailed above. 

## _**Principal funding sources**_ 

As the lead partner for the Nottingham Music Education Hub, our most significant funding stream is the Music Education Hub grant from the Department for Education (DfE) via Arts Council England which provides nearly 45% of our annual income. Other significant funding comes from our In Harmony Grant (£149,999 in 2020-21), in addition to the DfE and Arts Council England; schools buying in our services, performance income and music school contributions (£202,123 in 2020-21); and Nottingham City Council (£7,500 in 2020-21). Nottingham City Council have withdrawn their financial support in kind (£22,000 P/A). This also meant that we had to move our office accommodation (Previously a Nottingham City Council run building) and seek alternative, affordable accommodation. 

Page 7 



## **Nottingham Music Service** 

## **Trustees' Report** 

## **Structure, governance and management** 

## _**Nature of governing document**_ 

The charity is operated under the rules of its constitution adopted 17 July 2013. 

## _**Recruitment and appointment of trustees**_ 

There must be a minimum of three and maximum of 12 trustees with every trustee appointed for a term of three years. In selecting individuals, the trustees have regard to the skills, knowledge and experience needed for the effective governance of the CIO. Trustees visit charity activities and events throughout the year and where appropriate, have attended training seminars and conferences on behalf of the organisation. 

## _**Arrangements for setting key management personnel remuneration**_ 

The charity has two senior managers, who are: Chief Executive Officer and the Business, Operations and Strategy Manager. The Chief Executive Officer is one of the 3 members of staff still seconded from Nottingham City Council (NCC) and as such his pay is set by NCC. The pay of the Business Operations and Strategy Manager has been set by a panel of CEO and Trustee (either Vice Chair or HR link trustee) and is in line with the wider cultural and charity sectors. 

## _**Organisational structure**_ 

Nottingham Music Service is a Charitable Incorporated Organisation. We, as the Board of Trustees, are responsible for the governance, strategic direction and policies of Nottingham Music Service. We currently have 6 members from a variety of different backgrounds, identified specifically for their individual experience and expertise. We usually meet quarterly, but have more frequent meetings when necessary, such as around the time of the establishment of the charity or the end of year. 

We delegate day-to-day responsibility for the provision of Nottingham Music Service's activities to the Chief Executive Officer and Senior Team who are responsible for ensuring that the charity delivers the services specified in the Business Plan and for operational management of the organisation. 

## _**Major risks and management of those risks**_ 

## _Risks identified_ 

The annual business plan draws attention to risks including financial, legal/governance, health and safety, quality and HR related. We are satisfied that appropriate financial systems and controls, and employment policies and practices are in place, but we continue to test and refine these processes during board meetings, through the policy buddy system and in a recent full policy review. 

As Trustees, we feel that the key risks facing the charity at this time are operational risks arising from the very stretched organisational capacity and the uncertainty of our business model in the face of the global pandemic. To address this, we need to ensure that quality issues arising from the challenges in recruiting appropriately skilled staff, and financial arising from the short-term nature of our current key funding agreements and the current national education funding environment is continually assessed and planned for. 

Page 8 



## **Nottingham Music Service** 

## **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. 

Approved by the trustees of the charity on .................... and signed on its behalf by: 07/01/2022 


......................................... James Gibbons Trustee 

Page 9 



## **Nottingham Music Service** 

## **Independent Examiner's Report to the trustees of Nottingham Music Service** 

## **Independent examiner’s report to the trustees of Nottingham Music Service** 

I report to the trustees on my examination of the accounts of Nottingham Music Service (the Charity) for the year ended 31 March 2021. 

## **Responsibilities and basis of report** 

As the trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act'). 

I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable directions given by the Charity Commission under section 145(5)(b) of the Act. 

## **Independent examiner’s statement** 

Since the Charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member and Fellow of the Association of Charity Independent Examiners, which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 

1. accounting records were not kept in respect of the Charity as required by section 130 of the Act; or 

2. the accounts do not accord with those records; or 

3. the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination. 

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. 


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

John O’Brien MSc, FCCA, FCIE, employee of Community Accounting Plus Fellow of the Association of Charity Independent Examiners 

Units 1 and 2 North West 41 Talbot Street Nottingham NG1 5GL 

07/01/2022 Date:............................. 

Page 10 



## **Nottingham Music Service** 

## **Statement of Financial Activities for the Year Ended 31 March 2021** 

|**Note**<br>**Income and Endowments from:**<br>Donations and legacies<br>2<br>Charitable activities<br>3<br>Other trading activities<br>5<br>Total Income<br>**Expenditure on:**<br>Raising funds<br>6<br>Charitable activities<br>7<br>Total Expenditure<br>Net movement in funds<br>**Reconciliation of funds**<br>Total funds brought forward<br>Total funds carried forward<br>15|**Unrestricted**<br>**funds**<br>**£**<br>7,305<br>273,664<br>-<br>280,969<br>-<br>(136,393)<br>(136,393)<br>144,576<br>600,288<br>744,864|**Restricted**<br>**funds**<br>**£**<br>-<br>717,877<br>-<br>717,877<br>-<br>(747,640)<br>(747,640)<br>(29,763)<br>263,258<br>233,495|**Total**<br>**2021**<br>**£**<br>7,305<br>991,541<br>-<br>998,846<br>-<br>(884,033)<br>(884,033)<br>114,813<br>863,546<br>978,359|**Total**<br>**2020**<br>**£**<br>19,634<br>965,864<br>1,316|
|---|---|---|---|---|
|||||986,814|
|||||(3,443)<br>(963,544)|
|||||(966,987)|
|||||19,827<br>843,719|
|||||863,546|



All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for the period is shown in note 15. 

Page 11 



## **Nottingham Music Service** 

## **Statement of Financial Activities for the Year Ended 31 March 2021** 

## **These are the figures for the previous accounting period and are included for comparative purposes** 

|**Note**<br>**Income and Endowments from:**<br>Donations and legacies<br>2<br>Charitable activities<br>3<br>Other trading activities<br>5<br>Total Income<br>**Expenditure on:**<br>Raising funds<br>6<br>Charitable activities<br>7<br>Total Expenditure<br>Net income/(expenditure)<br>Gross transfers between funds<br>Net movement in funds<br>**Reconciliation of funds**<br>Total funds brought forward<br>Total funds carried forward<br>15|**Unrestricted**<br>**funds**<br>**£**<br>19,634<br>286,572<br>1,316<br>307,522<br>-<br>(221,370)<br>(221,370)<br>86,152<br>8,868<br>95,020<br>541,239<br>636,259|**Restricted**<br>**funds**<br>**£**<br>-<br>679,292<br>-<br>679,292<br>(3,443)<br>(742,174)<br>(745,617)<br>(66,325)<br>(8,868)<br>(75,193)<br>302,480<br>227,287|**Total**<br>**2020**<br>**£**<br>19,634<br>965,864<br>1,316|
|---|---|---|---|
||||986,814|
||||(3,443)<br>(963,544)|
||||(966,987)|
||||19,827<br>-|
||||19,827<br>843,719|
||||863,546|



Page 12 



## **Nottingham Music Service** 

## **(Registration number: 1153716) Balance Sheet as at 31 March 2021** 

|**Note**<br>**Fixed assets**<br>Tangible assets<br>12<br>**Current assets**<br>Debtors<br>13<br>Cash at bank and in hand<br>**Creditors: Amounts falling due within one year**<br>14<br>**Net current assets**<br>**Net assets**<br>**Funds of the charity:**<br>**Restricted funds**<br>**Unrestricted income funds**<br>Unrestricted funds<br>**Total funds**<br>15|**2021**<br>**£**<br>381,448<br>19,344<br>805,169<br>824,513<br>(227,602)<br>596,911<br>978,359<br>233,495<br>744,864<br>978,359|**2020**<br>**£**<br>291,975<br>16,949<br>684,473|
|---|---|---|
|||701,422<br>(129,851)|
|||571,571|
|||863,546|
|||263,258<br>600,288|
|||863,546|



The financial statements on pages 11 to 25 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by: 07/01/2022 


......................................... David Wesker Trustee 

Page 13 



## **Nottingham Music Service** 

## **Cash Flow Statement for the Year Ended 31 March 2021** 

|**Note**<br>**Cash flows from operating activities**<br>Net cash income<br>**Adjustments to cash flows from non-cash items**<br>Depreciation<br>6<br>**Working capital adjustments**<br>(Increase)/decrease in debtors<br>13<br>Increase/(decrease) in creditors<br>14<br>Increase in deferred income<br>Net cash flows from operating activities<br>**Cash flows from investing activities**<br>Purchase of tangible fixed assets<br>12<br>Sale of tangible fixed assets<br>Net cash flows from investing activities<br>Net increase in cash and cash equivalents<br>Cash and cash equivalents at 1 April<br>Cash and cash equivalents at 31 March<br>**Reconciliation of net cash flow to movement in net funds**<br>Increase in cash<br>Net funds at 1 April 2020<br>Net funds at 31 March 2021|**2021**<br>**£**<br>114,813<br>37,759<br>152,572<br>(2,395)<br>73,253<br>24,498<br>247,928<br>(127,232)<br>-<br>(127,232)<br>120,696<br>684,473<br>805,169<br>120,696<br>684,473<br>805,169|**2020**<br>**£**<br>19,827<br>35,971|
|---|---|---|
|||55,798<br>62,291<br>(52,491)<br>406|
|||66,004|
|||(5,046)<br>8,868|
|||3,822|
|||69,826<br>614,647|
|||684,473|
|||69,826<br>614,647|
|||684,473|



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

Page 14 



## **Nottingham Music Service** 

## **Notes to the Financial Statements for the Year Ended 31 March 2021** 

## **1 Accounting policies** 

## **Statement of compliance** 

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. 

## **Basis of preparation** 

Nottingham Music Service meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. 

## **Going concern** 

The financial statements have been prepared on a going concern basis. 

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements. 

## **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. 

## _**Deferred income**_ 

Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when: 

- The donor specifies that the grant or donation must only be used in future accounting periods; or - The donor has imposed conditions which must be met before the charity has unconditional entitlement. 

## **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 aggregates 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. 

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## **Nottingham Music Service** 

## **Notes to the Financial Statements for the Year Ended 31 March 2021** 

## _**Raising funds**_ 

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds. 

## _**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. 

## **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. 

## **Tangible fixed assets** 

Individual fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. 

## **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: 

|**Asset class**|**Depreciation method and rate**|
|---|---|
|IT equipment|33.3% straight line|
|Musical instruments|6.67% straight line|



## **Trade debtors** 

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. 

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables. 

## **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. 

Page 16 



## **Nottingham Music Service** 

## **Notes to the Financial Statements for the Year Ended 31 March 2021** 

## **Trade creditors** 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. 

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. 

## **Borrowings** 

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the over the period of the relevant borrowing. 

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. 

Borrowings are classified as current liabilities unless the has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. 

## **Fund structure** 

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity. 

Designated funds are unrestricted funds and resources set aside for specific purposes at the discretion of the trustees. 

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. 

A number of staff within the charity are seconded from Nottingham City Council. The council operates a defined benefit pension scheme. Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. 

Page 17 



## **Nottingham Music Service** 

## **Notes to the Financial Statements for the Year Ended 31 March 2021** 

## **2 Income from donations and legacies** 

|Donations and legacies;<br>Donations from companies, trusts and similar proceeds<br>**3**<br>**Income from charitable activities**<br>**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>Fees<br>273,664<br>Grants & donations<br>-<br>273,664<br>**4**<br>**Grants and donations**<br>Arts Council England<br>BBC Children in Need<br>Gift Aid<br>Nottingham Trent University<br>Sundry donations<br>**5**<br>**Income from other trading activities**<br>Trading income;<br>Sales of goods and services|**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>7,305<br>7,305<br>**Restricted**<br>**funds**<br>**£**<br>-<br>717,877<br>717,877<br>**Unrestricted**<br>**funds**<br>**£**<br>-<br>-<br>6,812<br>225<br>268<br>7,305|**Total**<br>**2021**<br>**£**<br>7,305<br>7,305<br>**Total**<br>**2021**<br>**£**<br>273,664<br>717,877<br>991,541<br>**Restricted**<br>**funds**<br>**£**<br>712,877<br>5,000<br>-<br>-<br>-<br>717,877<br>**Total**<br>**2021**<br>**£**<br>-<br>-|**Total**<br>**2020**<br>**£**<br>19,634|
|---|---|---|---|
||||19,634|
||||**Total**<br>**2020**<br>**£**<br>286,572<br>679,292|
||||965,864|
||||**Total funds**<br>**£**<br>712,877<br>5,000<br>6,812<br>225<br>268|
||||725,182|
||||**Total**<br>**2020**<br>**£**<br>1,316|
||||1,316|



Page 18 



## **Nottingham Music Service** 

## **Notes to the Financial Statements for the Year Ended 31 March 2021** 

## **6 Expenditure on raising funds** 

## **a) Costs of trading activities** 

|**a) Costs of trading activities**|||
|---|---|---|
|**Note**<br>Fundraising trading costs;<br>Fundraising|**Total**<br>**2021**<br>**£**<br>-<br>-|**Total**<br>**2020**<br>**£**<br>3,443|
|||3,443|



Page 19 



## **Nottingham Music Service** 

## **Notes to the Financial Statements for the Year Ended 31 March 2021** 

## **7 Expenditure on charitable activities** 

|Accreditation<br>Bank charges<br>CPD and quality assurance<br>Depreciation<br>Events - concert expenses<br>Events - music camp<br>Events - residential<br>Events - venue hire<br>Fundraising<br>Instrument repairs and consumables<br>Insurance<br>IT upgrade<br>Legal & professional fees<br>Materials<br>Ongoing travel<br>Partnership costs<br>Postage & carriage<br>PPE<br>Recruitment<br>Rent<br>Safeguarding<br>Staffing costs & freelance<br>Stationery & telephone<br>Subscriptions & publications<br>Sundry costs<br>Venue hire (music school)<br>Wages, NI & pension|**Unrestricted**<br>**General funds**<br>**£**<br>**Restricted funds**<br>**£**<br>-<br>-<br>-<br>795<br>-<br>5,420<br>-<br>37,759<br>-<br>1,390<br>-<br>-<br>-<br>-<br>-<br>718<br>-<br>3,388<br>-<br>9,408<br>-<br>10,548<br>-<br>5,576<br>-<br>6,310<br>-<br>3,736<br>-<br>895<br>-<br>5,254<br>-<br>-<br>-<br>2,230<br>-<br>84<br>-<br>15,927<br>-<br>561<br>-<br>2,443<br>-<br>2,773<br>-<br>1,495<br>-<br>332<br>-<br>848<br>136,393<br>629,750<br>136,393<br>747,640|**Total**<br>**2021**<br>**£**<br>-<br>795<br>5,420<br>37,759<br>1,390<br>-<br>-<br>718<br>3,388<br>9,408<br>10,548<br>5,576<br>6,310<br>3,736<br>895<br>5,254<br>-<br>2,230<br>84<br>15,927<br>561<br>2,443<br>2,773<br>1,495<br>332<br>848<br>766,143<br>884,033|**Total**<br>**2020**<br>**£**<br>9,717<br>945<br>7,497<br>35,971<br>8,905<br>25,494<br>11,217<br>19,716<br>-<br>11,937<br>9,363<br>2,244<br>8,070<br>2,304<br>32,941<br>16,448<br>167<br>-<br>1,596<br>22,720<br>2,049<br>11,255<br>3,456<br>1,483<br>1,684<br>7,699<br>708,666|
|---|---|---|---|
||||963,544|



## **8 Net incoming/outgoing resources** 

Net incoming resources for the year include: 

Depreciation of fixed assets 

|**2021**<br>**£**<br>37,759|**2020**<br>**£**<br>35,971|
|---|---|



Page 20 



## **Nottingham Music Service** 

## **Notes to the Financial Statements for the Year Ended 31 March 2021** 

## **9 Trustees remuneration and expenses** 

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year. 

No trustees have received any reimbursed expenses or any other benefits from the charity during the year. 

## **10 Staff costs** 

The aggregate payroll costs were as follows: 

|The aggregate payroll costs were as follows:|||
|---|---|---|
|**Staff costs during the year were:**<br>Wages and salaries<br>Social security costs<br>Pension costs|**2021**<br>**£**<br>686,770<br>45,602<br>33,771<br>766,143|**2020**<br>**£**<br>640,817<br>38,856<br>28,993|
|||708,666|



The monthly average number of persons (including senior management team) employed by the charity during the year was as follows: 

|Average weekly number of employees|**2021**<br>**No**<br>33|**2020**<br>**No**<br>27|
|---|---|---|



25 (2020 - 22) of the above employees participated in the Defined Contribution Pension Schemes. 

3 (2020 - 5) of the above employees participated in the Defined Benefit Pension Schemes. 

Contributions to the employee pension schemes for the year totalled £33,770 (2020 - £28,993). 

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

The total employee benefits of the key management personnel of the charity were £109,001 (2020 - £104,370). 

Page 21 



## **Nottingham Music Service** 

## **Notes to the Financial Statements for the Year Ended 31 March 2021** 

## **11 Taxation** 

The charity is a registered charity and is therefore exempt from taxation. 

## **12 Tangible fixed assets** 

|**Cost**<br>At 1 April 2020<br>Additions<br>At 31 March 2021<br>**Depreciation**<br>At 1 April 2020<br>Charge for the year<br>At 31 March 2021<br>**Net book value**<br>At 31 March 2021<br>At 31 March 2020<br>**13 Debtors**<br>Trade debtors<br>Accrued income<br>**14 Creditors: amounts falling due within one year**<br>Trade creditors<br>Other taxation and social security<br>Pension scheme creditor<br>Accruals<br>Deferred income|**Computer**<br>**equipment**<br>**£**<br>40,583<br>4,294||**Musical**<br>**instruments**<br>**£**<br>481,427<br>122,938||**Total**<br>**£**<br>522,010<br>127,232<br>649,242<br>230,035<br>37,759<br>267,794<br>381,448<br>291,975<br>**2020**<br>**£**<br>15,086<br>1,863|
|---|---|---|---|---|---|
||44,877||604,365|||
||36,095<br>4,765||193,940<br>32,994|||
||40,860||226,934|||
||4,017||377,431|||
||4,488||287,487|||
||||**2021**<br>**£**<br>6,119<br>13,225<br>19,344<br>**2021**<br>**£**<br>100,280<br>10,666<br>4,944<br>20,917<br>90,795<br>227,602|||
||||||16,949|
||||||**2020**<br>**£**<br>27,830<br>10,777<br>5,093<br>19,854<br>66,297|
||||||129,851|



Page 22 



## **Nottingham Music Service** 

## **Notes to the Financial Statements for the Year Ended 31 March 2021** 

## **15 Funds** 

|**Unrestricted funds**<br>**_General_**<br>General fund<br>**_Designated_**<br>Development fund<br>Charity Base fund<br>Contingency fund<br>**Total unrestricted funds**<br>**Restricted funds**<br>NCC Asset Transfer<br>Music Hub and In Harmony<br>(General)<br>Music Hub and In Harmony<br>(Core Roles)<br>Music Hub and In Harmony<br>(Extension)<br>**Total restricted funds**<br>**Total funds**|**Balance at 1**<br>**April 2020**<br>**£**<br>61,351<br>38,937<br>300,000<br>200,000<br>538,937<br>600,288<br>263,258<br>-<br>-<br>-<br>263,258<br>863,546|**Incoming**<br>**resources**<br>**£**<br>280,969<br>-<br>-<br>-<br>-<br>280,969<br>-<br>203,977<br>386,535<br>127,365<br>717,877<br>998,846|**Resources**<br>**expended**<br>**£**<br>(136,393)<br>-<br>-<br>-<br>-<br>(136,393)<br>(29,763)<br>(203,977)<br>(386,535)<br>(127,365)<br>(747,640)<br>(884,033)|**Transfers**<br>**£**<br>22,417<br>(22,417)<br>-<br>-<br>(22,417)<br>-<br>-<br>-<br>-<br>-<br>-<br>-|**Balance at**<br>**31 March**<br>**2021**<br>**£**<br>228,344<br>16,520<br>300,000<br>200,000|
|---|---|---|---|---|---|
||||||516,520|
||||||744,864|
||||||233,495<br>-<br>-<br>-|
||||||233,495|
||||||978,359|



Page 23 



## **Nottingham Music Service** 

## **Notes to the Financial Statements for the Year Ended 31 March 2021** 

|**Unrestricted funds**<br>**_Unrestricted general funds_**<br>General fund<br>**_Unrestricted designated funds_**<br>Development fund<br>Charity Base fund<br>Contingency fund<br>**Total unrestricted funds**<br>**Restricted funds**<br>NCC Asset Transfer<br>Music Hub and In Harmony<br>(General)<br>Music Hub and In Harmony<br>(Core Roles)<br>Music Hub and In Harmony<br>(Extension)<br>**Total restricted funds**<br>**Total funds**|**Balance at 1**<br>**April 2019**<br>**£**<br>301,239<br>40,000<br>-<br>200,000<br>240,000<br>541,239<br>302,480<br>-<br>-<br>-<br>302,480<br>843,719|**Incoming**<br>**resources**<br>**£**<br>307,522<br>-<br>-<br>-<br>-<br>307,522<br>-<br>110,948<br>438,362<br>129,982<br>679,292<br>986,814|**Resources**<br>**expended**<br>**£**<br>(257,341)<br>-<br>-<br>-<br>-<br>(257,341)<br>(30,354)<br>(110,948)<br>(438,362)<br>(129,982)<br>(709,646)<br>(966,987)|**Transfers**<br>**£**<br>(290,069)<br>(1,063)<br>300,000<br>-<br>298,937<br>8,868<br>(8,868)<br>-<br>-<br>-<br>(8,868)<br>-|**Balance at**<br>**31 March**<br>**2020**<br>**£**<br>61,351<br>38,937<br>300,000<br>200,000|
|---|---|---|---|---|---|
||||||538,937|
||||||600,288|
||||||263,258<br>-<br>-<br>-|
||||||263,258|
||||||863,546|



The specific purposes for which the funds are to be applied are as follows: 

Contingency Fund - To cover and safeguard the future of the charity and/or to be able to settle any liabilities in the event of its closure. 

Organisational Development - For organisational development (Specifically development of a Trading Arm). Charity Base fund - to accumulate funds for future premises. 

NCC Asset Transfer - Relates to the instrument stock transferred from the Council to the charity when it was originally set up. 

Music Hub and In Harmony (General) - Arts Council and DfE funding restricted to subsidise the cost of teaching packages the charity offers schools (45% subsidy). 

Music Hub and In Harmony (Core Roles) - Arts Council and DfE funding restricted to the salary of direct delivery costs. 

Music Hub and In Harmony (Extension Roles) - Arts Council and DfE funding restricted to non direct delivery costs. 

The transfer from the Development fund to the General fund relates to costs incurred on development 

Page 24 



## **Nottingham Music Service** 

## **Notes to the Financial Statements for the Year Ended 31 March 2021** 

## **16 Analysis of net assets between funds** 

|Tangible fixed assets<br>Current assets<br>Current liabilities<br>Total net assets<br>Tangible fixed assets<br>Current assets<br>Current liabilities<br>Total net assets|**Unrestricted funds**<br>**General**<br>**£**<br>**Designated**<br>**£**<br>147,953<br>-<br>307,993<br>516,520<br>(227,602)<br>-<br>228,344<br>516,520<br>**Unrestricted funds**<br>**General**<br>**£**<br>**Designated**<br>**£**<br>28,717<br>-<br>162,485<br>538,937<br>(129,851)<br>-<br>61,351<br>538,937|**Restricted**<br>**funds**<br>**£**<br>233,495<br>-<br>-<br>233,495<br>**Restricted**<br>**funds**<br>**£**<br>263,258<br>-<br>-<br>263,258|**Total funds**<br>**£**<br>381,448<br>824,513<br>(227,602)|
|---|---|---|---|
||||978,359|
||||**Total funds at**<br>**31 March**<br>**2020**<br>**£**<br>291,975<br>701,422<br>(129,851)|
||||863,546|



## **17 Independent examiner's fees** 

During the period, the fees payable (excluding VAT) to the charity’s independent examiner Community Accounting Plus are analysed as follows: 

|Independent examination<br>Other financial services|**2021**<br>**£**<br>1,545<br>156<br>1,701|**2020**<br>**£**<br>1,545<br>482|
|---|---|---|
|||2,027|



## **18 Related party transactions** 

There were no related party transactions in the year. 

## **19 Benefits in kind** 

Nottingham City Council agreed to provide office accommodation and storage space at College Street Centre to the value of £7,500 for this financial year. 

Page 25