Charity registration number.. 1153716 Nottingham Music Service Annual Report and Financial Statements flir the Year Ended 31 March 2022
Nottingham Music Service Contents Reference and Administrative Details Trustees, Report 2to8 Statement of Trustees, Responsibilities Independent Examiner'5 Report 10 Statement of Financial Activities 11 to 12 Balance Sheet 13 Cash Flow Statement 14 Notes to the Financial Statements 15to24
Nottingham Music Service Refer¢n¢¢ and Administrative D¢tails Trustees JaTne5 Gibbons David Wesker Amanda Dawson David Mellen Nigel Cooke Helen Maddison Rosemary Jacobs lan Burton. CEO Michaell Aspinall, Business Operations and Strategy Manager Senior Management Team Charity Registration Number 1153716 Principal Office The Litehouse Crociis Street Nottingham NG23DP INdepeNdent Examiner John O'Brien. employee of Community Accounting Plus Units l ai)d 2 North West 41 Talbot Street Nottingl)am NGI 5GL Bankers CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling tQent ME194JQ Page I
Nottingham Music Service Trust¢¢s' Report The trL15tee5 present the annual report together M'ith the financial ststeTnents of the charity for the year ended i I March 2022. Trustees.. David Wesker Amanda Dawson David Mellen Nigel Cooke Ja]nes Gibbons Heleii Maddi501I lfroin 3010912021) Rosemary Jacbos {from 30109120?1} Barbara Morgan (until 04105120?1) Tamba Roy (until 0111212021) Objective5 and actii'ities Objects and aims The Chariiable Objects of the Charity, as taken from the constitution are 10 advance the education. accessibility and enjovment of music and the arts for children and young p¢opl¢. We believe that music makes a difference. As a registered charity and lead partner for the Nottingham Music Education Hub, we are cominitted to makin¥ tnu5ic more accessible and inclusive. We support young people Irom across the city to develop their musical skills. and participate in diverse ensembles and perlomiances, LOI)tributing to the life of our great city. NottinJ(T am Music Service {NMS) operntes in the local authority area of Nottingham City which has a populaiion of JJ7,100 with a total school age population of 49,600 (ONS 2020). Notlinghain is the I lth most deprived district in the country and has the lowest disposable household income in England (ONS 20181. Child poverry is a major issue in the ciry with 59/0 of children living in families where no adults work or where the household income is low, enough to receive tax credits (compared to the national average of 370/0) and ?4 /0 of children are classed as being affected by severe income deprivation (IMD 2019). The 2011 Census shows that Nottingham has a diverse populaiion. of the largest population groups.. 65 /0 identify as White British, 5.5 /0 Pakistani. 4 /0 White and Black Caribbean, i.25 /0 Chinese and 3.2/0 African. Of the total population 34.7/0 identify as -non-white British,. Page 2
Nottingham Music Service Trust¢¢s' Report Objectives, 51Tulegies andurtivilies Prior to 2002, music makin¥ in the city wa5 very limited, with only 15Q/o of the schools providing an opportunity to learn to play an instrllinent. Nottingham Music Service (NMSI started it5 work on principles of acce5S, inclusion, quality, progre55ion and civic engagement. Our strate¥Ties are designed to include children of all backgrounds, including those who do not have support for music n)aking. We provide whole class instnjmental teaching and. in 2020121. 74% of city primary schools received a First Access prograinme {which includes Whole Class Ensen)ble teaching and In Harmony) run or supported by NottinJ(T am Music Service. We also pn)vide progression routes so that young people can continue their Inusic making ouiside of school and advance as n)usicians. Our Area Bands are beginner ensembles which are provided in schools and online. We also deliver after-school ensembles which focus on a w'ide variety of instrumentsisinging and musical styles. Our Saturday Music School provides a clear progression route into our orchestras (RHYO Interconnect and our flagship Robin Hood Youth Orchestra). Key programmes include.. Whole Class Ensemble Teaching (WCEf) programme range of instrutnents; Small groiip teaching in secondary. schools; Music Camps - two day re.sidentials for post-WCET pupils to kick start their leaming into year 5 and beyond. Areg Bands a lle.0rk of 24 Area Bands across the city, available for pupils 10 access immediately after their WCE year both in their school and online streained; NOttInaTn M115ic School operatijig oil Saturday mornings and Thursday evenings providing ensemble opportuiiities through the Robin Hood Youth Orchestra famil), of ensembles,. Singing Strategy a programme of targeted schools provision: Continiial Professional Developmeiit ICPD) and events., Exam Strategy- bespoke syllab115 developed by NMS staff and accredited by Music Teachers Board IMTB). Tar¥eted online support 5ession5 for large Scale Grade l and Grade 2 entries across tlie city., Event5 an aiinual programme of eveiits iiicludiiig Christmas in the City, Noise froTn the Next Generation, Sing City, the Great Oiche5tra Experiment: the Sumnier Sing. Move on up Ifargetiiig pro¥re55ioiII, targeted 'orkshop5 aiid visitiiig ensetnbles pro¥ramme. a year of ensemble teaching in whole classes on a In Hamiony NOttill¥ha Music SetTrice deliver5 oiie of only six lil Hannony progrnnines acros5 England. Inspired by the principles of Venezuela's inspirational El Sisiema, In Hamiony is a national progrdmme that aims to iiispire and translomi the lives ol. children in deprived communities, using the power and disciplines of community-based orchestral music-making. Initially locussed on 4 primary schools across the ciiy-. In Hamiony is now extended to bridge the gap between IH schools and the WCET programme. Page 3
Nottingham Music Service Trust¢¢s' Report A¢hievemeRls andperformumre As the year progressed we have been able to return to almost a full programme of public events including.. Our Annual MusiL Camp for Year 5 pupils retumed in Sepiember 2021 following the pandemic, with 5 one-day'camps" being held at the University of Nottingham Music Department and Highfields Park. In November 2021, the Making Tracks Tour visited Nottingham for the first time, with GCSE Music pupils from two City Secondary, schools attending a w'orkshop and concert at the University of Noitingham Music Department and Djanogly Recital Hall. Although oiir prestigious annual Sing City competition remained online in 2021, the number and standard of entries was still very high. Christmas in the City was a very successful in-peTson / online hybrid event in December 209 I, with pupils being inviied to the Nottingham Albert Hall to record socially distanced performances, and those perfornignces then being edited together into a full concert video that was premiered on our YouTube channel. Our first events to welcome live audiences of friends and families to a perfomiance follow'ing the pandemic were our MAB (March Area Band) Week performances for our Area Bands, held at Ellis Guilford School. The Great Orchestra Experiment of 2022 was a return to a proper in-person event. welcoming Year 4 pupils and oiir Robin Hood Youth Orchestra to perfonn an eclectic programine of Inu5lC touether iii the Nottinuham Albert Hall. Performaiice5 were iecorded eiiablin¥ lls to Stream to schoo15 Wlth live pre5eiiter5 and our staff in cla55room5 accompaiiying pupils. This hybrid inodel enabled us to reach more pupi15 than our previous live pro¥ramine of concerts. We welcomed a-cappella singing group Apollo 5 to the Nottingham Albert Hall to host our fantastic Summer Sing eveni w,hich was aiieiided by Primary and Secondary choirs from across the City. New for 2022 was our very successful Get Connected event. held ai the Nottingham Trent University Music Department. This invitation-only event lor pupils niowing from Year 6 to Year 7 was designed to encourage them to join a NMS ensemble and continue io learn their instrument when they move up to Secondary school. Another new event for 2022 focusing on supporting pupils moving from Year 6 to Year 7 was Move On Up. held at the Nottingham Albert Hall. Participating Year 6 classes completed a post-SATs instrumental unit of work in Music before heading to the Albert Hall for workshops with Music and Perfomiing Arts Leads from the Secondary schools to which the pupils would be moving, and a massed perfomiance L)f Twist & Shout. To celebrate the visit of the Robin Hood Youth Or¢hesira's Gerniall partner or¢hesira, the Jugendorchester Siadt Kgrlsruhe, the two orchestras enjoyed a residential in the Peak District during the hottest week of 2022. On their return to Nottingham they participated in two events.. Orchestral Connections at St Mgry's Church in the Lace Market alongside our Area Bands, and The Great Big Orchestra Project the following evening at Nottingham Albert Hall featuring our Connect Ensembles and Robin Hood Young Voices. Publlc benefil The trustees confimi that they have coinplied with the requirements of settion 17 of the Charities Act 201 I to have due regard to the public benefit guidai)ce published by the Charity Commission for Englai)d and Wales. Page 4
Nottingham Music Service Trust¢¢s' Report Chairs Report 2021122 This has been a year of returning back to g more normal delivery for Nottingham Music Service. After the upheaval of the pandemic and lockdowns pupils and stsff are finally enjoying making music together in large groups. Parents and carers are once again experiencing the joy of seeing children play in live concerts and events. It has been a slow return though, our 2021 Christmas in the City Concert was once agait] streatned online and 'e started the school year in September 20? I with a socially distanced Music Camp at Nottinghain University, rather thall 11am Hall. Gradually though we I.ere able to start putting on public events beginning witli our March 2022 series of Area Band concerts at Ellis Guilford School and culmit]ating with oiir German partner orcl)estra. the Jugendorchester Stadt Kar15Tuhe visiting u5 for a week of residentials and concerts it] July 2022. As we 'elcome the retum to nonnality we also ensure that skills leaTnt during our lockdown teaching are utilised to tnake the serviLe even Inore accessible to students. An exainple of thi5 is oul Grec1t Orchestra Experiment which had previously been a one-ddy event. This year we filmed the Loncert and then stre<imtd it into sLhoo15 across the city, with live presenters: for the folloiTrin¥ three days. This meant tl)at the concert ntsw has a far wider reach and impact across Ntsttinghan) city schools. We have also started to diversify our teaching packa¥es and for the fiTSt time are delivering sinall group teaching and one to one lessons in secondary schools. This is an exciiing move forward for the service and we hope to continue to expand this area of leaching and income over the coming years. As with all organisations we are facing change and uncertainty. The music service still does not have a permaneni base from which to operaie bur this also has positive aspects as li iiow means we work iii pannership ith a number of organisaiions across the ciiy that ivelcome our pupils and ensembles every week. {Noiiingham Contemporary, Nottingham College, Nottingham Playhouse. Fisher Gate Point, Nottingham Cathedral Hall). We also received the sad news that In Harmony fiinding will be ending in September 202). This will have an impact on the level of music teaching across Nottingham City primary schools. However, the service is committed to developing teaching models that will maintain the high standards set by In Hamiony and remain cost effective to sch1$. The piiblication of the revised National Music Plan sets out clear ways and expectations of how Miisic Hubs and schools will work together. We anticipate that this will be gn area of in¢regsed opportunities for the service that en%ure strengthen i)ur links with locgl schools. Whilst I hgve highlighted the challenges that the service faces we are positive that these chan£es will only 5trengrtheii the service and enhance its teaching packaiFes. Throu adaptingF our provision we have seen a large increase in the number of schools that have reqiiested music teaching from NottiiiuFham Music Service. Over the past 12 Tnonths we have emplo)'ed ten houTly paid staff member5 and foiir trainee teacher5 to meet thi5 deniand. Our contii)ued success and positivity when addressing tUre challenges would not be possible without the dedication of our staff teaTn and Board member5 and I would like to take thi5 OPPOrtiiiiity to thaiik thein all for everything the), have done over the past 12 Inoiith5. 1 would a150 like to thank Barbara MoriTaii and Tamba Roy who stood down froin the Board this )'ear. Their expertise and Calm, kind and aiialytical approach to being Boaid n)en)bers provided invaluable ii)sight and diiection. We wish them well foi the future. Page 5
Nottingham Music Service Trust¢¢s' Report Nottingham Music Service continues to evolve aiid achieve,. l am proud of the commilJnent shom'n by all staff, children, fainilies, and sclioo15 to siipport musical learningT across Nottinghain City. It 15 only throubFh all their efforts that M'e have been able to achieve all oiir successe5 this year. James Gibbons Chair of Trustees Nottingham Music Service September 2022 Page 6
Nottingham Music Service Trust¢¢s' Report Financial revie Sincc the end of the pandemic lockdowns, we hav¢ seen an in¢rease in the take Up of our servi¢es spe¢ifi¢ally for hoiirly paid staff delivering one-to-one and small group tuition in se¢ondar)' schi)ols. This is a provision that the i)rgani%atinn is planning to expand in 2Q22123. We have also had a request from an academy chain to look at directly char£ing parents for one-to-one and small group provision. this would provide a new in¢ome stream and one we are plgnning to implement in ?022123. Diie to the pressure on scliool buduFets pre and post lockdown, we have only been able to make increinental increases in our chargFe for WCETIIH that do not match inflation and thi5 has contributed to an overall deficit. With the introduction of the refreshed Music Plan in June 2022 we anticipate increased opportunities to develop new services that address music teaching and curriculuin needs in schools. We recognise that 202212i will be a period of change for the organisation with In Hamjony Funding ending in Septeinbei 202i. We are actively iesearchin¥ various teaching modelslpackages that will ensure that our intoine continues to n)tet the Itvel requiied foi the Lontinuous running of the service. Polifjy on reserves The trustees review the level of reserves at each qiiarterly management meeting and review policy and action reqiiired regarding reserve levels ai year-end to biiild into the budget and project planning for the coming financial year. Due 10 the current Covid lockdo7 and the implicglions on teaching in schools li is vital thai we uiilise the reserves to ensure the long tenn fiiture of the organisation. This is something that the Board discuss at each meeiing and review the use of reserves on all ongoing basis. The trnstees have reviewed the iiature of anticipated income and expenditure of the Charity, particularly with regards to the oiigoin£ financial obligations of the ekisting prog71nme of activity, admiiiistrative overheads and emplo}'ment contracts of staff. The trustees consider that iii order to safeguard the future of the charit), or to be able to settle any liabilities in the event of its closure, reserves are riiig-fenced to cover the follow'ing liabilities in the case of wind up.. l. Staff notice period pay (between 4 and 12 weeks} for NCC and Charity Employee5; 2. Windin¥ up of other on-goin¥ coinmitineiits (such as rent and venue hire}; 3. Redundancy pay for Charity Employees., 4. Redundancy pay for NCC Employees; 5. Pension Strain aiid Underfundin¥ for NCC Pension Fund. The trustees have set aside a reserve of £?00,000 to cover the areas listed above. In addition, the trustees have identified an addiiional fund of £40,000 to support organisational development {As of J I st March 2022 £207 reinains ol. the Development Fund), w'ith a focus on income generation and a ring fenced fund of £300,000 for the purchase of a chariiy base and instrument storage. The balance of the General Fund at J 1st March 2022 is £259,372. Principulfunding sources As the lead partner for the Nottiiigham Music Ediication Hub, our most significant funding stream is the Musi Ediicatioii Hub grant from the Dcpartment for Ediication {DtE) via Arts Council Eiigland which provides nearly 45010 of our annual income. Other sIglficant funding comes froin our In Hamiony Grant. in addition to the DtE and Arts Council Englaiid., Schools buyingF in our services, perforinance inconie aiid music scliool contributions. Page 7
Nottingham Music Service Trust¢¢s' Report Strueture, governanee and management 'alure olgoverning documenl The charity is opcratcd undcr the rules of its constitution adopted 17 July 2013. ReLruilmenl uppuirtlpneiil uftruilee& There must be a minimum of three and maximum of 12 trustees with every trustee appointed for a terni of three years. In seleciing individuals, Ihe trustees have regard io the skills. knowledge, diversity and experience needed lor the effective govemance of the CIO. Trustees visit charity activities and events throughout the year and here appropriate. have attended irnining seminars and conferences on behall. ol'the organisaiion. Arrangenientsfor setting key mNuogemenlpersonnel remuneraliom The charity, has two senior managcrs, who are.. Chief Executive Officer and the Business, Operations and Strategy Manager. The Chief Excciitive OITicer is one of the 3 members of staff still seconded from Nottingham City Coiincil (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 Tnistee leith¢r Vice Chair or HR link trnst¢e} and is in line with the wider cultural and charity sectors. Org&Kls&lloiialsiruclure NottinJ(T am Music Service is a Charitsble Incorporated Organisation. We, as the Board of Trustees, are responsible for the goven)ance. straiegic direction and policies ol'Noiiingham Music Serwice. We currently have 7 members frlim 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 responsibiliry for the provision of Nottingham Music Service's activities to the Chief Executive Officer and Senior ream who are responsible for ensuring that the charity delivers the services specified in the Business Plan and for operational management of the organisation. Mffijor risks andmanagemenl vfihose risk5 Risks identified The annual busii)ess plan draws attei)tioi) to risks including financial, legavgovemance, health and safety, quality and HR related. We are satisfied that appropriate financial systems and controls, and empltsyment policies and practices are in place. but we continue to test and reline these processes during boaid meetings, through the polity buddy system and in a recent full policy review. As Triistees, we feel that the ke), risks facing the charity at this time are operational risks arising fron) the very siretched organisational capaciry and the uncertainty of our business model in the face of increased costs that outstrip income, changes w the National Music Plaii and the ending of In Harmon}. funding in Sepiember 2023. 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-temi naiure 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 Trust¢¢s' Respon$ibilitie$ The tnjstees are responsible for preparing the trustees, report and the financial statements iii accordance with the United KingFdoin Accounting Standards (United Kiiiudom Generall), Accepted Accountinb Practice) and applicable law and regulations. The lam, applicable to charities requires the trustees to prepare financial ststements flir 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 accout]ting 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 i¥'hether applicable accountin£ st[dardS have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial sratemenis on the going concern basis unless it is inappropriate to presume that the charity will CL)ntinue in business. The trustees are responsible for keeping proper accliunting records thai disclose '1th reasonable accuracy at any time the financial position of the charity and enable them to ensiire that the financial statements comply with th¢ Charities Act 201 l. the applicable Charities (Accounts and Reports) Regulations: and the provisions of th¢ constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and dctection of fraud and other irregularities. Approved by the trustees of the charity on . 0411012022 alld signed on its behalf by.. James Gibbons Trustee Page 9
Nottingham Music Service Ind¢p¢ndent Examiner's Report to th¢ trustees of Nottingham Musi¢ Service Independent examiner's report to the tru5tee5 of Nottingham Music Service I report to the trL15tee5 on inj examination of the accounts of Nottinghain Music Service (the Charity) for the year ended 31 March 2022. 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'l. I report in respeci of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in cgrrying oiit my examination I have followed all the applicable directions given by the Charity Commission under section 145(5Xb) of the Act. Independent examiner's 51atement Since the Cliarity's gross incon)e exceeded £250,000 your examiner Inust be a member of a body listed in section 145 of the 201 I ALt. I coiifinn that I c11n qualified to undertake the examinatioii because l am a member nd Fellow of the Associdtion of Charity Independent Examiner5, wl)iLh is oiie of the listed bodies. I have con)pleted my examination. I confiTm that no matters l)ave come to iny attention in connection with the examination giving me cause to believe that in any inaterial respect.. l. accounting records were not kept in respect of the Charity as required by section 130 of the Acr,. or 2. the accounts do not accord with those records,. or the accounts do not comply i¥ith the accounting requirements conceming the forni and content of accounts set out in the Charities {Accounts and Reports) Regulatioi)s 2008 other than any requirement that the accounts give a 'true and fail view which is not a Inatter considered as part of ali independent examination. I have no concerns and have come across no other rnatters in connection with the examination to which attentiL)n should be dra1 in this report in order to ¢nahle a prapcr iinderstaiiding of the account% to be reached. John O'Brien Msc, FCCA. FCIE, employee of Community Accounting Plus Fellow of the Association of Charity Ii)dependent Examiners Units l and 2 North West 41 Talbot Street Nottingham NGI 5GL Date.. 2011212022 Page 10
Nottingham Music Service Statement of Finan¢ial Activities for the Year Ended 31 March 2022 Total 2022 Total 2021 Unrestricted Restricted Note Income and Endowments from: Donations and legacies Charitable activities 14,360 J49.026 14,360 982,6i2 7,305 991,541 633,606 Total Income i63,386 633.606 996,992 998,846 Expenditure on.. Charitable activities (16,31J) (995,7261 {1,012.OJ9} (884.OJ3} Total Expenditure (16,31i) (995.7261 (1,012.039} {884.Oi3} Net incomel{expenditure) Gr05S transfers between funds i47.073 {i32,358} (362,1?01 33?,358 (15,047} 114,813 Net movement in funds 14,715 (29,762) (15,047} 114,813 Reeoneiliation of funds Total lldS brought forward 744,864 233.495 978,359 863,546 Total ndS catTied fonvard 14 759,579 203,733 963,312 978,359 All of the charity's activities derive from continuing operations diiring the above two periods. The funds breakdown for the period is shown in iiote 14. The notes on pages 15 to 24 form an integral part of these financial statenienrs. Page 11
Nottingham Music Service Statement of Finan¢ial Activities for the Year Ended 31 March 2022 These are the figure5 for the previou5 accounting period and are included for Comparative purposes Total 2021 Unrestricted Restricted Note Income and Endowments from: Donations and legacies Charitable activities 7,305 273,664 7,305 991,541 717,877 Total Income 280,969 717,877 998,846 Expenditure on.. Charitable activities {136,i931 (747,6401 (884,033} Total Expenditure (136,3931 (747,6401 {884,033} Net movement in funds 144,576 (29,763) 114,813 Reconciliation of funds Total funds brought fonward 600.288 ?63,258 863,546 Total funds carried forward 14 744.864 233,495 978,359 The notes on pages 15 to 24 form an integral part of these financial statenienrs. Page 12
Nottingham Music Service (Registration number: 1153716} Balanee Sheel as at 31 Mareh 2022 2022 2021 Note Fixed assets Tangible assets 10 367,332 381,448 Current assets Debtors Cash at bank and in hand 25,782 789,511 19,344 805,169 12 815,293 824,513 Creditors: Amounts falling due within one year 13 {?19,313) {227,602} Net current assets 595.980 596,91 Net assets 963,312 978,359 Funds of the charity: Restrieted income funds Restricied funds 14 203,733 233,495 Unrestrietcd ineome funds Unrestricted funds 759.579 744,864 Total funds 14 963,312 978,359 The financial statements on paues I I to 24 were approved by the trustees. and auth0ri5ed for issue on 0411012022 . and S]ed on their behalf by.. . l) kts- David Wesker Trustee The notes on pages 15 to 24 form an integral part of these financial statenienrs. Page 13
Nottingham Music Service Cash Flow Statement for th¢ Year Ended 31 March 2022 2022 2021 Note Cash tlows from operating activities Net cash (expenditllre)..'in¢ome (15,047) 114,81i Adjustments to cash tlows from non-cash items Depreciation 50,152 37,759 i5,105 152,572 Working capital adjuslments Increase in debtors (Decrease)lincrease in creditors Increase in deferred income (6,438) (17,480) 9,191 12,395) 13 24.498 Net cash flows from operating activities 20,378 247,928 Cash tlows from investing activities Purchase of tangible Iixed assets 10 (i6,036) {127.232} Net (decrease)lincrease in cash and cash equivalents (15,658) 120,696 Cash and cash equivalei)ts at l April 805,169 684,47i Cash and cash equivalents at J l March 789,511 805,169 Reconciliation of llet cash flow to 0¥ement in llet fund5 {Decrea5eyincrease iii cash (15,658) 120,696 Net fund5 at l April 2021 805,169 684,47i Net funds at 31 Mai¢h 2022 789,511 805,169 All of the cash flom's are derived frorn continuing operations during the above two periods. The notes on pages 15 to 24 form an integral part of these financial statenienrs. Page 14
Nottingham Music Service Notes to th¢ Financial Statements for th¢ Year Ended 31 Mar¢h 2022 Aeeounting polieies Statement of compliance The financial statements have been prepared in accL)rdance w'ith the second editilin 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 Nottingham Music Service meets Ihe definition of a public benefit entity under FRS 102. Assets and liabiliiies are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accoiinting policy notes. Going Concern -Fhe financial ststements have been prepared on a going concern basis. The trustees assess whether the use of going concem is appropriate i.e. whether there are any material uncertainties related to events or conditions that Jnay cast significant doubt on the ability of the charity to continue as a goit]g concern. The trustee5 rnake this assessment in respect of a period of one year from the date of approval of the financial statements. Income and endowments Voluntary income inLludiii¥ doiidtions: gifts, le¥dLies and grant5 that provide Lore fundin¥ tsr are of a general nature is recognised when the Lhdrity has entitlement to the inLome, it is probable th(It the incoine will be ieLeived and the amouiit can be n)easured witl) 5ufficieiit reliability. Donutions legeleS Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured. Deferred Incme DefeTred income represents amounts reLeived for future periods and 15 released to ii)comii)g re50ur¢es li) the period for which, it lias been received. SuLli incoine 15 only defetTed when.. The donor speLifie5 that the grnnt Or doiiatioii Inu5t onlj. be u5¢d iii future acLOUlltin¥ period5; or The donor lias imposed coiiditions which must be inet before the Ch[ltY has uncoiiditional entitlen)ent. Expenditure All expenditure is recognised once ihere is a legal or consiructive obligation to that expenditure. ir is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expendiiure heading that aggregates similar costs to that category. Where costs cannot be directl!, aitributed to particular headings they have been allocated on a basis consistent with the use of resources, with cenirdl staff costs a]locad on ihe basis of time spent, and depreciation charges a]locad on the ponion of the asset's use. Orher support costs are allLKated based on the spread of staff costs. Page 15
Nottingham Music Service Notes to th¢ Financial Statements for th¢ Year Ended 31 Mar¢h 2022 Churituble aLlivilies Charitable expenditure coinpri5es those costs incuTred bj the charity in the delivery of its activities and 5ervice5 for its btneficiarie5. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support thein. Taxalion The chaiity is considered to pass the tests set out in Paragraph I Sehedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable coinpany for UK corporatioi) tax purposes. Accordingly. the Lharity is poteniially exempt from taxation in respect of income or capital gains received within categories Lowered by Chapter J Part I l 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. Tallgible fixed assets Individual fixed assets are initially recorded ai cost, less any subsequent accumulaied depreciation and subsequent accumulated impaimient losses. DepreciatioTh and amortlskltion 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 cla55 IT equipment Musical instruments Depreeiation rnethod and rate i3.3 /0 Straight line 6.67 /0 Straight line Trade debtors Trade debtors are amounts due from customers for merchandise sold or services perfonned in the ordinary couise of busii)ess. Trade debiors are recognised initially at the transaction price. The}, are subsequently measured at amortised cost using the effeciive interest method. less provision for impaimient. A provision for Ihe impaimient of debtors is esiablished when there is objective evidence that the charity will not be able to collect all amounts due according to ihe original tems of the receivables. Cash and cash equivalellts Cash and cash equivalenis comprise cash on hand and call deposits, and other short-temi highly liquid investments that are readily CL)nvenible to a known amount of cash and are subject to an insignificant risk of change in value. Trade creditor5 Trnde creditors are obligations to pay fL)r goods or services ihat have been acquired in the ordinary course of business from suppliers. Accounts pavable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting pcriod, to defer settlenient of the creditor for at leasi t..elve moiiths after the reporting date. If there is an iinconditional right to defer settlement for at least 'eIve months after the reporting date, tho. are presented as non-current liabilities. Trade cr¢ditors are r¢cognised initially at th¢ Iransa¢iion price and subs¢qu¢ntly measured at amortised ¢ost using the effective interest method. Page 16
Nottingham Music Service Notes to th¢ Financial Statements for th¢ Year Ended 31 Mar¢h 2022 Borrowings Intcrc8t-bearing borrowings are initially r¢corded at fair value, n¢t of transaction ¢osts. Interest-bearing horrom'ings are subscqucntly carried at amortised cost, with the difference between the proceed5, net of trdnsaction costs, and th¢ amount due on redempiion being recognised as a ¢harge to the over the period of the relevant borrowing. Interest expense is re¢ognised on the basis of the effeKtiv¢ interest method and is in¢lud¢d in interest payable and similar chargFe5. BotTowings are classified as current liabilities unles5 the ha5 an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Fund structure Unrestricted incotne funds are general ndS 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 puwose. Pensions and other post retirement obligations The Charity operates a defined contributioii pension scheme which is a pension plan under which fixed contributions are paid iiito a pension fund and the Charity has no legal or constnictive obligation to pay further contributions eveii if the fund doe5 not hold sufficient assets to pay all employees the benefits relating to employee Service iii the cutTent and prior periods. Coiitributions to defined contributioii plan5 are reco¥ni5ed iii the Stateinent of Financial Activitie5 when they are due. If contribution payments exceed the coiitribution due for 5etTrice, the excess is reco¥ni5ed as a prepayinent. A nuinber of stsff within the charity are seconded from Nottingham City Council. The council operdtes a defined benelii pension scheine. Typically defined benefit plans deline ali amount of pension benefit that an employee will receive on retiremei)L usually dependent on one or more factors such as age, years of service and coinpensation. 2 Ineorne from donat10115 and legacies Unrestrieted lunds General Total 2022 Total 2021 Donations and legacies: Donations from con)panies, trusts and similar proceeds 14,360 14,360 7,305 14,360 14,360 7,305 Page 17
Nottingham Music Service Notes to th¢ Financial Statements for th¢ Year Ended 31 Mar¢h 2022 3 Income from eharitable activities Unrestri¢¢ed Restricted fund5 Total 2022 Total 2021 General Fees Grants & donations 349,026 349,026 633,600 273,664 717,877 633.606 349,0?6 633,606 982,632 991,541 4 Grants and donation5 Unre5trietrd funds Restrieted funds Total funds Arts Council England Nottingham City Council Capital One (Europe) D'O}'ly Carte Nottingham SchLX)Is Trust Skipion Building Society Foreman I lardy Charitable Tiust AW Lyinii Foiiiidation Gift Aid Sundry donations 615,786 5,400 5,000 3,000 1,650 1,270 1,000 500 615,786 5,400 5,000 3,000 1,650 1,270 1,000 500 9,860 4,500 9.860 4,500 14,360 6i3,606 647,966 Page 18
Nottingham Music Service Notes to th¢ Financial Statements for th¢ Year Ended 31 Mar¢h 2022 5 Expenditure on charitable activities Unrestri¢¢ed Restricted fund5 Total 2022 Total 2021 Designated Accreditation Bank charges CPD and quality assurance Depreciation Equipinent Events - cotjcert expenses Events - music camp Events venue hire Fundraising Instrument repairs and consumables Insurance IT up¥rade Le£al & professional fees Materials Ongoing travel Partnership costs Postage & carriage PPE Repairs & renewals Recruitment Rent Safeguarding Staffing costs & freelance Stationery & telephone Subscriptions & publications Sundry costs Venue hir¢ {miisi¢ school) Wages, Nl & pension 503 564 8,029 50.15? 5,878 503 564 8,029 50,152 5,878 2,?39 1,500 9,035 4.084 795 5,420 37,759 1,390 1,500 9,035 4,084 6,931 9,094 9,486 6.610 9,605 2,955 4,466 637 2,480 i58 797 718 3,388 9,408 10,545 5.576 6,310 3,736 895 5,254 6,931 9,094 9,486 6,610 9,605 2,955 4,466 6?7 2,480 358 797 2,230 84 iO,079 2,511 2,952 2,764 1,906 1,999 14,970 803,142 iO,079 2,511 2,952 2,764 1,906 1,999 14,970 819,4)5 15,927 561 2,443 2,773 1,495 848 766,143 16,313 16,i13 995,726 1.012,039 884,03i 6 Net ineomingloutgoing resources Net (outgoing)lincoming resources for the year include.. 2022 2021 Depreciation of fixed assets 50,152 37,759 Page 19
Nottingham Music Service Notes to th¢ Financial Statements for th¢ Year Ended 31 Mar¢h 2022 7 Staff eosts The aggr¢gat¢ payroll costs were as follows.. 2022 2021 Staff £0s¢s during the year were: Wages and salaries Social security costs Pension costs 7i8,079 48,598 32,778 686,770 45,602 33,771 819,455 766,143 The monthly average number L)f persons (including senior management team) employed by the charity during the year was as follows.. 2022 No 2021 No Average w'eekly numkr of employees 24 (2021- 251 of the above employees participated in the tkfiiied Contribution Pen5ioiI Schemes. 312021 3) of the above employees participated in the Defined Benefit Pen5ioiI Schemes. Contributions to the employee pensioi) schemes for the year totalled £32.77812021- £33,770). No employee received ernoluments of more than £60,000 during the year The total employee benefits of the key management personnel L)f the charity were £108,640 (2021- £109,001). 8 Independent examiner'5 fee5 During the period. the fees payable (excluding VAT) io the charity's independent examiner Community Accounting Plus are analysed as follows.. 2022 2021 Independent examination Other financiai services 1,545 406 1,545 156 1,701 Page 20
Nottingham Music Service Notes to th¢ Financial Statements for th¢ Year Ended 31 Mar¢h 2022 9 Taxation The charity is a register¢d chgrity and is therefore exempt from taxation. 10 Tangible fixed assets Computer equipment Musical in5trufftents Total Cost At l April 2021 Additions Disposals 44,877 604,365 23,129 {1,7641 649,242 36,036 (1.764) At 31 March 20?2 57,784 625,730 683,514 Depreciation At l April 2021 Charge for the year Eliininated on disposals 40,860 8,319 226,934 41,833 {1.7641 267,794 50,152 (1,764) At i l March 2022 49,179 267,OOi 316,182 Net book value At i l March 2022 8,605 358,727 367,332 At i l March 2021 4,017 377,431 381,448 l Debtors 2022 2021 Trade debtors Accrued income Other debtors 15,375 10,025 382 6,119 13,225 25,782 19,344 12 Cash and cash equivalents 2022 2021 Cash on hand Cash at bank 294 789,217 294 804,875 789.511 805,169 Page21
Nottingham Music Service Notes to th¢ Financial Statements for th¢ Year Ended 31 Mar¢h 2022 13 Creditors: amounts falling due within one year 2022 2021 Trade creditors Other tsxaiion and social securiry Peiision scheme creditor Accruals Deferred income 98,372 11,787 4.814 4,354 99,986 100,280 10,666 4,944 20,917 90,795 219,31) 227,602 14 Funds Balance at 31 March 2022 Balance al I April 2021 Incoming resources Resources expended Tran5fer5 Unrestricted funds Gener1 General fund 228,344 363,386 (332.358) 259,372 Desigll4led Development fund Charity Base fui)d Contiiigency fuiid 16,520 iOO,000 200,000 116,313) 207 300,000 200,000 516.520 116,313) 500,207 Total unrestricted funds 744.864 363.386 116,313) (332,358) 759,579 Rcstrieted funds NCC Asset Transfer Music Hub and In Harniony (General) Music Hub and In Ham)ony (Ctsre Roles) Music Hub and Iii Hatynony (Extension) 233.495 129,762) 203,733 230,605 (230,605) 294,598 (626,956) 332,358 108,403 (108,403) Total restricted fund5 2i3,495 633,606 (995,726) i32,358 203,73i Total funds 978,359 996,992 (1.012,039) 963,312 Page 22
Nottingham Music Service Notes to th¢ Financial Statements for th¢ Year Ended 31 Mar¢h 2022 Balance at 31 March 2021 Balance at I April 2020 Incoming resources Re50uree5 expended Tran5fer5 Unrestricted funds Gener1 General fund 61,351 280,969 (136,393) 22,417 228,344 DesigNdled Development fund Charity Base fund Contingency fund 38,937 300.000 200,000 (22,417) 16,520 300,000 200,000 538,937 129,4171 516,590 Total unrestricted funds 600,288 280.969 136.393 744,864 Restricted NCC Asset Transfer Music Hub and In Harniony (General) Music Hub and In Hamiony (Core Roles) Music Hub and In Hamiony (Extension) 263,258 129,763) 233,495 203,977 (203,977) 386.535 (386.535) 127,365 (127,i65) Total restricted funds 263,258 717,877 (747,640) 233,495 Total funds 863,546 998,846 (884.033) 978,359 The specific purposes for which the funds are to be applied are as fLIIIows'. Coniingency Fund To cover and safeguard ihe future of the ehariry anojor io be able ro settle any liabilities in the event of its closure. Organisational Development - For organisational development (Specifically devellipment of a Trading Arm). Charity B&se fund - to accumulate funds for future premises. NCC Asset fransfer - Relates to the instrument stock Iransferred frL)m the Council to the charity when it was originally set up. Music Hub and In Hamion}' (General) - Arts Council and DfE funding restricted to subsidise the cost of tcaching packages the charity offers schools (450/0 subsidy). MuEic Hub and In Hamiony (Core Roles) - Arts Coun¢il and DtE funding restricted to the salary of direct dclivery, costs. Music Hub and In Harniony (Extension Rol¢s} - Arts Coiincil gnd DtE ndIng restricted to non direct delivery The transfer from the General fund to the Music Hub and li) Hamiony (Core Roles) fund is to cover the deficit on this activity. Page 23
Nottingham Music Service Notes to th¢ Financial Statements for th¢ Year Ended 31 Mar¢h 2022 IS Analvsis of net assets between funds Unrestricted 2022 Total funds General Designated Restricted Tangible fixed assets Curreni assets Current liabilities 163,599 315.086 {219.31i) 203,733 367,332 815,293 {219,J13} 500.207 Total net assets 259,i72 500,207 203,733 963,312 Unrestricted 2021 Total funds General Designated Restrieted Tangible fixed assets Current assets Current liabilities 147,953 307,993 {927,602 233,495 i81,448 824,5 li 227,602 516,520 Total net assets 228,344 516,520 233,495 978,359 16 Benefits in kind Nottingham City Council agreed to provide olrice accommodation and storage space at College Sireei Centre to the value of £7,500 for this financial year. 17 Trustees rcmuncration and cxpcnscs No trustces, nor any pcrsons conncctcd 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. Page 24