Charity registration number 1153716 NOThINGHAM MUSIC SERVICE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 NOTTINGHAM MUSIC SERVICE LEGAL AND ADMINISTRATIVE INFORMATION Trwtèès Mr J G Glbbons Mr D Wesker Mr D Mell8n Mr N Cooke Mrs R Jacobs Mrs L Lesquereux Mr M Henry (Appointed 30 July 2023) (Appointed 30 October 2023) (Appointed 30 October 2023) (Appointed 8 January 2024) (Appointed 30 October 2023} (Appointed 8 January 2024) Mrs C Harrison Mrs C Atkinson U Joshi W Smith Senlor Management Team lan Burton, CEO Michael Aspinall, Business Operations and Strategy Manager Charlty number 1153716 Principal address The Litehouse Cro¢us Street Nottingham NG2 3DP Auditor Rogers Spencer Newstead House Pelham Road Nottingham NG5 1AP Bankers CAF bank Ltd 25 Kings Hill avenue Kings Hill West Malling Kent MEl9￿a NOTTINGHAM MUSIC SERVICE CONTENTS Chairfs report Trustees. report Ind8pendent auditorfs report 10- 13 ststement of financial activities 14 Balance sheet 15 Statement of cash flows 16 Notes to the financial statements 17-30 NorriNGHAM MUSIC SERVICE CHAIR'S REPORT FOR THE YEAR ENDED 31 MARCH 2024 As the Chair of th8 Board for Nottingham Music Hub, it is my privilege to present the trustees annual report for the financial year 2023-2024. This year has been a transfomatlve perfod for us, marked by Ihe announcement of the Musl¢ Hub Investment Programme, continualion of the In Harmony Programme and our continued organisational resilience in the fac6 of 8¢onomic and social challenges. We are ¢urrentty the lead organisation for Nottingham Music Hub. yet, due to the implemenlBlion of the Music Hub Investment Programme this will be the last annual report before the hub joins in a consortium with Inspire Music (Nottinghamshire Music Hub) in Septemb8r 2024. This is a positiv8 Opportunity for Nottingham Muslc servi￿ and hub as it provides us with the potential to widen our geographical reach and strengthen our partnership work. Our vision remains the same - to inspire and enable young people to achieve their full potential through MUS￿ ty providing high-quality music 8ducation and opportunitl8s and ensuring accèssibility and indusivity for all children and young people in Nottingham. An innovative example of our approach to inclusion is the GBOP concert highlighted b810w. In July 2023 we held The Great Big Orchestra Projed (GBOP) whlch was a collaborative project with Northamptonshlre Musl¢ and Performing Arts Twst, through our partnership with Music Education Hubs East Midlands {MEHEM) Uprising Project. This provided SEND children and young people the opportunity to watch RHYO and play with them in an inspiring concert at the Albert Hall. Some learnt Instrumental parts during their lessons wilh our SEND specialisl, which they then performed with RHYO. Some formed a choir and sang and signed with the orchestra and singers from a City Se￿ndary school. Every piece was meaningfully interactive and inclusive. To ensure the event was as Incluslve as possible and to include students who wouldn't be able to attend on the day we took RHYO to them and held a smaller version of GBOP in Oak Field School, 8 school with a large number of students in wheelchairs and many who have Profound and Multiple Leaming Difficulties (PMLD). Again, all puplls W8r8 invited to interact with RHYO and it was a truty joyous occasion. At both concerts we also featured sensory and sensology rooms so those who experlence musl¢ In a more sensory way ￿Uld participate in ways meaningful to them. From the succ8ss of this concert we are now part of MEHEM'S Uprising Project wide fundlng application which aims to provide mentoring opportunities for young people to work wlthln SEND schools. This year has not b8en without it5 challenges. The economic climate and budget constraints have required us to be more resourceful and strategic in our planning. Thé rising costs of instrument maintenance and operational expenses have had a significant impact. However, thanks to prudent financlal management and proactive fundralslng efforts, we have navigated these challenges effectively. Our financial strategy continues to focus on sustainabilty, ensuring that we can maintain and possibly expand our programs in the years to com8. I would like to extend my heartfelt gratitude to the students that we teach and access our ensembles, our dedicated staff team, volunteers, partners, and supporters. Their unwavering commitment and passion for music education have been instrumenlal in our successes this year. 2023-2024 has been a testament to our resilien￿ and our openness to change as an organisation. Vthilst we have adapted we have contlnued to deliver world leading music education and innovative events such as the GBOP concert. As we look foward to the next year, l am confident that Nottingham Music se￿1￿ will continu8 to thrive and inspire the next generation of musicians. Together, we will ensure that music remains a vital and enrichlng part of our community. Thank you for your continued support arKI dedication to Nottingham Music Hub. Yours sincerely James Gibbons Chalr of the Board Date:.09Ki1r2025........................ NOThINGHAM MUSIC SERVICE TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2024 The trustees present their annual report and financial statements for the year ended 31 March 2024. The financial statements have been prepar8d in accordance with the accounting policies sel out in note 1 to the financial statements and comply with the charity's goveming document. the Charfties Act 2011 and "Accounting and Reporting by Charities.. Statement of Recommended Practi￿ applicable to charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 102)" (effeciive 1 January 2019). ObJecilve8 and actlvltles The Charitable Objects of the Charity, as taken from the constitution are to advance the èducalion. accesslblllty and enjoyment of music and the arts for children and young people. We believe that music make5 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 perfomiances. contributing lo the life of our great city. Nottingham City has a very tight inner-Gity bourKlary and is one of the most deprfved areas in the country where residents have some of the lowest household disposable income in the UK according io the Office for National Statlsti¢s. NOTTINGHAM MUSIC SERVICE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Str8tegie8 forachiewng aims and objectives Prlor to 2002, muslc making in the city was very limited, with only 15% of the schools providing an opportunity to learn to play an instrument. Nottingharn Music Service (NMS) stsrted its work on principles of access, inclusion, quality, progression and civic engagement. Our strategies are designed to indude children ol all backgrounds, induding those who do not have support for music making. We provide whole class instrumental teaching, and in 2023r24 72Yo of city primary schools received a First Access programme (which includes Whole Class Ensemble teaching incorporating In Harmony) run or supported by NMS. We a150 provide progression ri)utes 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 (working in partnership with the Nottingham Contemporary and Nottingham College) provides a clear progression route into one of our orchestras (RHYO Interconnect and our flagship Robin Hood Youth Orchestra). Key programmes include.. Whole Class Ensemble Teaching (WCET) programme - a year of ensemble teaching in whole classes on a range of instruments; 2. Music Camps two day residentials for post-WCET pupils to kick start their18aming into year 5 and beyond 3. Area Bands- a nelwork of small Area Bands based in schools across the city, available for pupils to access immediately after their WCE year; 4. Nottingham Music School operating on Saturday momings providing ensemble opportunities through the Robin Hood Youth Orchestra {RHYO) family of ensembles 5. Singing Strategy a programme of singing incorporated into our rep8rtoire, events and teathlro, 6. Continual Professional Development (CPD) and events 7. Exam strategy - Accredit8d by Music T8ach8rs Board {MTB). Targ8t8d online support sessions for large scale Grade 1 and Grade 2 entries across the city. 8. Events an annual programme of events including Christmas in the City, Sing City, th8 Gr8at Orchestra Experiment, Get Connected, MAB Week and an end of RHYO lour, largé scale concert. In Harmony - Nottlngham Muslc SeINi￿ delivers one of only six In Harmony programmes across England. Inspired by the principles of Venezuela's inspirational El Sistema, In Harniony is a national programme that aims to inspire and transfomi the lives of children in deprived communitles, using thè power and disciplines of community-based orchestral musie-making. In January 2023 we leamed that the In Harmony programme funding will be ending so in 2023124 we have been working though a transition phase of incorporating the leaming and ethos of In Hamiony into our standard schools offer. In January 2024 we were informed that and extra years, worth of In Hamiony funding was available and that we would need to apply to the Arts Council outlining how we would continue In Harmony for one year. As we were already in our transition stage of phasing out our In Hamiony offer to schools we felt it was more appropriate to enhance our provision with the principles of In Harmony. This induded training staff, offering an internship to an ex member of RHYO and increasing our after school provision. We leamt that our bid had been successful in March 2024 so will be iTnplementing our revised delivery model from September 2024. Public benefft 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 guidanrK published by the Charity Commission for England and wa￿5. NOThINGHAM MUSIC SERVICE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Achievements and performance This has been a year of change for Nottingham Music Ser4i¢e. We have undergone an organisational restructure to best meet the needs of the changing priorities of Music Hubs as outlined in the revised National Plan for Music EdU￿tiOn. In December 2023 the DOE announced the Music Hub Investment Programme. The intention of this was to combine a number of Music Hubs across the country reducing the overall number from 121 down to over 60. From this we leamt that we would be merging with Nottinghamshire Music Hub to create one Music Hub that covers both the city and county- We submitted a joint application with Inspire (Nottingham Music Hub) with them being the Hub Lead Organisation (HLO) to operate as a consortium to cover the aty and county. We were informed that we had been successful with our bid in March 2024. This has far reaching positive effects on the service as we will now be oFdelivering services across the city and county from September 2024. We continue to look for new premises to operate from. Our offices on Crocus Street provide us with a small offic8 and storage space but all our ensembles and orchestras have to rehearse in venues across the city. To this end our thanks go to Nottingham Contemporary, Nottingham Playhouse, Nottingham College, Nottingham Cathedral and The circle of Light for supporting and accommodating our ensembles. In February 2024 we successfully revived our Sing City competition. This h88 proved to be oné of our most successful events with nearly 30 entrants. The winners have had th8 Opportunity to sin9 at events across the city- We have diversified our ensembles to include non-orthestral instrumenls focusing on guitars. drums, keyboard and voice. These hav8 proved v8ry popular. In July 2023 we held a RHYO lour. Uslng the Natlonal Forrest YHA as a base we were played 8 series of concerts. Working with North8mptonshire Music Hub the tour concluded with a concert at Nottingham Albert Hall. As part of this we ran an event call The Great Big Orchestra Project which invited SEND sthools to take part and experience the concert. In April 2024 we received our Arts Council data return information which monitors our reach across the cty Compared to other Music Hubs. The data was very positive highlighting= in 5 young people in Nottingham Cty are learning a musical instrument _ 500A higher that the national average. Nottingham has 3 times the national average of young people continuing to ream their musical instruments after their whole class ensemble year. Nottingham has thè 51h highest percéntage of pupils attending music hub ensembles in the Country. 3. 9954 young people are learning a musical instrument in Nottingham ~ a 14000/0 increase since 2002 (when the service was formed) MO￿ Nottingham city pupils are leaming an instrument beyond Whole Class Ensemble than the 3 other east mldlands, authorftles comblned (who have a sthool population 4 limes that of Nottingham) NOThINGHAM MUSIC SERVICE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Finan¢ial review This has been a particularly un￿rtain time with regards to furKling for Nottingham Music Ser￿Ice. As hrghlighted above we leamt that In Harmony Programme would be ending which repr8sent8d a significant drop in our funding. However, we have now been awarded a further yèar of In Harmony funding which will take US to September 2025. As th8 effects of inflation and rising fuel costs effected school budgets there was uncertainty about schools renewing thelr contracts wlth us, however alihough there was a 3.4% drop in schools income overall income rose by 0.380h from £1,090,140 to £1,094,305. The revised National Plan for Music Education added more responsibility, detaillng minimum requirements as to how Music Hubs can support schools with music education but offered no increase in funding to refled the increased role. During the year the service carried out a complete stsffing review in r8spons8 to the proposed In Harm¢Jny funding cut and this resulted in a 50k reduction in exp8ndilure, down from £1,147,644 In 2023 to £1,094,835 in 2024. We did have a positive year with regards to fundraising, raising over £80,000 for the second year running, despite the economic uncerteinty this well exceeding our budget. A private donor has gen8rously donated £10,C(JO In both 22123 & 23124 years. Trusts & Foundations have also donated the following, £1,000 donatlons were received from The Fomian Hardy Charitable Trust, JN Derbyshlre Trust, Gordon Memorial Trust, Big Give Trust and Ultimate Flyby Orchestra. £2,000 from The Thomas Farr Charity, £2,340 from Ronnie Scott's Charitable Foundation, £4,C((I from the Harrison-Frank Family Foundation and £4,500 from The Backstage Trust. We r8C8IV8d £15.000 from BBC Children In Need as part of a 2 year grant in support of the Robin Ho¢xI Youth Orchestra. In September 2023 we completed our organisational restructure. This planned restructure meant that wè wére better place to meet the needs of the revised National Plan for Music and the new focus for Music Hubs (Supporting schools with their Music Plans and appointing Lead Schools). The restructure affected the Management and Administrative team which resulted in two rèdundancy payments being made at the end of August 2023. NorriNGHAM MUSIC SERVICE TRUSTEES, REPORT (coKfiNUED) FOR THE YEAR ENDED 31 MARCH 2024 Going conc8m Despite an uncertain year as regards In Harmony future funding we ended the year with a small deficit of £500 against a £57,505 deficit in 22123. The trustees have agreed a 24r25 budget that predicts an operating deficit of £9,550. The trustees have a reasonable expeclation that Nottingham Music servi￿ has adequate resources to manage its ongoing risks and that cash reserves are sufficient to support its operations and liabilities for the foreseeable future. For this reason they continue to adopt the going COn￿M basis in preparing the financial statements. ReseNespoh'cy The trustees review the level of reserves at each quarterly management meeting and review policy and action quired regarding reserve levels at year-end to build into the budget and project planning for the coming financial year. 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 tharity or to be able to settle any liabilities in the event of its dosure. r8s8TNes ar8 ring-fenced to cover the following liabilities in the case of wind up: Staff notice period pay {between 4 and 12 weeks) for NCC and Charity Empl¢)yees', Winding up of other on*oing commitments (such as rent and venue hlre)., Redundancy p8y for Charity Employees; Redundancy pay for NCC Employees: Pension Strain and Underfunding for NCC Pension FurKI. 10. 12. 13. The trustees have set aside a reserve of £200,￿J0 to cover the areas listed above Th8 amount of fr88 rèsèrves at 31st March 2024 is £255.497 The amounts of restricted reserves at 31st March 2024 is £144,443 being the net l)ook value of instruments supplied by Nottingham City Council in 2013, there are also designated reserves of £200,000 contingency fund detailed above, £300,000 building purchase fund and a remaining £,5337 development fund. Principalfunding sources As the lead partner for the Nottingham Music Education Hub, our most significant funding stream is the Musi¢ Education Hub grant from the Department for Education (DfE) via Arts Council England which provides 42°h of our annual income. Other significant funding comes from our In Harmony Grant (£150,000 in 2023r24), in addition to the DfE and Arts Council England other major sources of funding are schools bLrying in our teaching packages which in 2023124 was £362,997 (2022123 £378,430) and £6499 (2022123 £4,334) from area band activities. There are a number of live performances. by the children throughout the year which have proved to be very popular. ticket sales for the year being £19,159 (2022r23 £14.263). Major risks The annual business plan draws attention to risks including financial. legavgovemance. 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 and in Gontinual policy review. As Trustees, we feel that the key risks facing the chaiity at this time ar8 OP8rational risks arising from the very stretched organisational capacity and the uncertainty of rnusic hubs needing to merge. at some point, in the coming year. To address this we need to ensure that the organlsation is best placed to meet these challenges through adaptlng and restwcturing. NorriNGHAM MUSIC SERVICE TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Plans for future periods We face a number of key challenges over the next 12 months. The revised National Music Plan for Music Education has evolved how Music SeNices interact with schools and the rolè we play in supporting them in developing their own music plans. We are aware that the DfE are moving towards merging a number of music hubs and V￿ await the outcome of the consultation around this. However, our prioriiies remain the same which is to focus on the musical progression struclure in the city and build on our existing delivery model tD meet the ongoing challenge of transfomiing Notlingham Cty into a model for high qualty inclusive music education, including: Tackling musical engagement at secondary level, which is not as strong as our engagement at primary level. While acknowledging this as a national issue with specific local problems 125% of city secondary schools have no music provision). We aim to become more respondent to the need of secondary sthools by employing more hourly paid tutors who can deliver individual lessons to small groups or on a one to one basis. It is anticipated that his will fomi the basis of a new pathways where talented young people from disadvantaged backgrounds have the opportunty to continue pursuing music once they move from primary education. Developing new ensembles outside school to support young people at both primary and secondary levels Improving access to musical accreditation for city pupils through our work wilh the MTB exam Board. Enabling more young people to 8ngage with the contemporary approach to musical training developed through the RHYO family (mix of genres. dlfferent learning styles from different cultures, student ownershlp, young leaders, involvement in a range of civicJ¢ommunity events, traditional and unique events); Building bridges belween RHYO and more traditional ensembles and adult ensembles so that more city children Can benefit from experienang complementary approaches and experiences" To continually invigorate the existing WCET programme, strengthen the partnership with the music hub. develop staff skllls In supportlng children musically and enable children to access our uniqué musical progression framework which has been adapted to indude recommendations of the new National Music Curriculum., Strengthenlng the links between music hub activities and thè local music industry Icommunity to provide suitable challenges and progression routes for young people wth musical interests and skllls In rocklpop areas by building on existing links. We ar8 kéen to 8ngage further with our partners to work together In tackling the genuine musical needs of city children, as we are aware that the Current experien￿ of many local arts organisations is primarily with more affluent young people from outside the aty boundaries. Structure, governance and management The charity is operated under the njles of its constitution adopted 17 July 2013. The trustees who served during the year and up to the date of Signatu￿ of the financial ststements were: Mr J G Gibbons Mr D Wesker Mr D Mellen Mr N Cooke Mrs R Ja￿)bS Mrs L Lesquereux Mr M Henry Mrs C Harrison Mrs C Atkinson Mrs H Maddison U Joshi W Smith {Appointed 30 July 2023) (Appointed 30 October 2023) (Appointed 30 October 2023) (Appointed 8 January 2024) (Resigned 1 April 2023) (Appointed 30 October 2023} (Appointed 8 January 2024) NOTTINGHAM MUSIC SERVICE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Recruitment and app￿ntment of trustees There must be a minimum of three and maximum of 12 trustees With every trustee appointed for a temi of three years. In selecting individuals. the trustees have regard to the skills, knowledge and experience needed for the effective govemance of the CIO. Trustees visit charity events throughout the year and where appropriate, have attended training seminats and COnferen￿S on behalf of the organisation. Orgarnsational stwcture Nottingham Music Service is a Charitable Incorporated Organisation. We, as the Board of Trustees. are responsible for the govemance. strategic direction and policies of Nottingham Music Service. We currently have 6 members from a variety of different backgrounds. identified speCif￿11Y 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 chaiity or the end of year. We delegate day-tCHlay responsibilty for the provision of Nottingham Music SetViC8's activities to the Chief Executive Officer and the Business and Operations Manager who are responsible for ensuring that the tharity delivers the services specified in the Business Plan and for operational management of the organisation. Remuneration policy The charity has two senior managers, who are.. Chief Executive Officer and the Business, Operations and Strategy Manager. The Chief Executive OffI￿r is one of the 2 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 S8Ctors. Statement of trusteès. responsibilities The trustees are responsible for pr8paring thé trus188s' rewrt and the financial statements in accordance with the United Kingdom Accounting Standards {United Kingdom Generally Accepted A¢¢ounting Practice) and applicable law and regulatlons. The law applicable to charities requires the trustees to prepare financial stst8ments 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 charty for that period. In preparing these financial ststements. the trustees are required to: select suitable accounting policies and then apply them conslstently; observe the methods and principles in the Charities SORP. make judgements and estimates that are reasonable and pruden( stale whether applicable accounting standards have been followed. subject lo any material departures disdosed 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 disdose 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 Ihe prcwisions of the onstitution. The trustees are also responsible for safeguarding the assets of the charity and hence for tsking reasonable steps for the prevention and detection of fraud and other i￿egUlarities. NOTTINGHAM MUSIC SERVICE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Disclosure of information to auditor Each of the trustees has confirmed that Ihere is no infonTLation of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirnied that th8y have taken appropriate steps to identFfy such relevant information and to establish that the auditor is aware of such infomiatlon. The trustees, report was approved by the Board of Trustees. Mr J G Gibbons Trustee Date:0910112025...................................... NOTTINGHAM MUSIC SERVICE INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF NOTTINGHAM MUSIC SERVICE Opinion We have audited the financial statements of Nottingham Music Service (the 'charity') for the year ended 31 March 2024 which comprise the statement of financial activities, the balan￿ sheet, the statement of cash flows and notes to the financial staternent5, including significant accounling policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Ac￿Unting Standards. induding Financial Reporting Standard 102 The Final}￿al Reporting Standanl applicable in the UK and Republic of lTrland (United Kingdom Generally Accepted Accounting practi￿). In our opinion. the financial sLqtements= give a true and fair view of the state of the charity's affairs as at 31 March 2024 and of its incoming resources and application of resources, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi￿., and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) {ISAs (UK)) and applicatle law. Our responsibilities under those standards are further descrlbed In the Auditorfs responsitslities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Stsndard, and we have fuffilled our oth8r ethical r8sponsibiliti8s in aecordance with these requirements. We believe that Ihe audit evidence we have obtained is SLrfficient and approprlate to provide a basis for our opinion. Conclusions relating to going concem In auditing the financial statements. we have concluded that the trustees, use of the going Concem basis of accounting in the preparalion of the finandal statements Is approprlate. Based on th& work we havè perfomied. we have not identrfied any material unc8rtainti8s relating to events or conditions that, individually or collectivèly. may cast significant doubt on the charity's abilty to continue as a going concem for a peric*J of at least iwelve months from when the financial statements a￿ aLrthorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern ar8 described in the relevant sections of this report. Other infomiation The other infomiation comprise5 the infornation included in the annual report other than the financial statements and our auditors report thereon. The trustees are responsible for the other infomiation contained within the annual reporL Our opinKJn on the finanaal statements does not cover the other information and we do not express any form of assuran￿ conclusion thereon. Our responsibilty is to read the other infonnation and, in doing so, consider whether the other infomiation is materialty inconsistenl with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatemenls. we are required to detemiine whether this gives rise to a material misststement in the finanaal statements themselves. If, based on the V￿rk we have performed. we conclude that there is a material misstatement of this other infonnation, we are required to report that fact. We have nothin9 to report in this regard. Matter8 on which we are required to report by excoptlon We have nothing to r8POrt in respect of the following matter5 in relation to which the Charflles (Accounts and Reports) Regulations 2QKI8 require us lo report to you If, in our oplnion.. the information given in the financial statements is inconsistent in any material respect with th8 truste8s' r8POrt,' or suffici8nt accounting records have not been kept: or the financial statements are not in agreement wlth the accountlng re￿rds. or we have not received all the infonnation and explanations we require for our audit. 10- NOTTINGHAM MUSIC SERVICE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF NOTTINGHAM MUSIC SERVICE Responsibllities of trustees As explained MO￿ fully in the statement of trustees, responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for such intemal control as the trustees detemiine is necessary to enable the preparation of financial statements that are free frorn material misstatement. whether due to fraud or error. In preparing the financial statements. the trustees are responsible for assessing the charl￿S ability to continue as a going concem, disdosing, as applicable, matters related to going concem and using the going concem basis of accounting un18s$ the trustees either interKI to Cease operations, or have no realistic altemative but to do so. Audltorfs responslbllities for the audit of the financial 8tatements We have b88n appoint8d as auditor under section 144 of the Charities Act 2011 and report In aC￿rdan￿ with the Act and relevant regulations made or having effect thereunder. Our objèctives are to obtain reasonable assurance about whether the financial stat8ments as a whole are free from material misstat8ment, whether due to fraud or èrror, and to issue an auditor's report that Includes our opinion. Reasonable assurance is a high level of assurance but Is not a guarantee that an audit conducted in accordance wlth ISAS (UK) will always detect a material misslatement when it exists. Misstatements can aris8 from fraud or error and are considered material if. individually or in the aggregate, they couEd reasonably be 8XPèCted to influence the economic decisions of users taken on the basis of these financial statements. The extent to bthith our procedures are capable of detecting irreguiarilies. including fraud, is detailed below. The engagement partner ensured that the engagement team collectively had the appropriate competence. capabilities and skills to identify or recognise non-compliance with applicable laws and regulations" We identified the laws and regulations applicable to the company through discussions with trustees and other management, and from our knowledge and experience of the charity sector, We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including legislation and data protection, anti-bribèry. employment, environmental 8nd health and safety legislation., We assessed the extent of compliance with the laws and régulations identified above through making enquiries of management and inspecting relevant correspond8nce,' and Identifled laws and regulations were communicated within the audit team regularly and the team r8main8d alert to instances of non-compliance throughout the audit. NOTTINGHAM MUSIC SERVICE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF NOThINGHAM MUSIC SERVICE We assessed the susceptibility of the Charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: Making enquiries of management as to where they considered there was susceplibillty lo fraud, their knowledge of actual. sUspe￿ed and alleged fraud; Considering the intemal controls in place to miiigate risks of fraud arKJ non-¢ompli8nce with laws and regulations; and Understanding the design of the charity's remuneration policies. To address the risk of fraud through management bias and override of controls. we: Perfom)8d analytical proc8dures to identify any unusual or unexp8Cted relationships., Tested journal entries to identify unusual transactions; Assessed whether judgements and assumptions made in detennining the accounting estimates were indicative of potential bias- and Investigated the rationale behind significant or unusual tr8nsactM)ns, In response lo the rlsk of Irregularltles and non (396,848) 760.835 Previou8 year: At 1 Aprll 2022 Incomlng resources Resources expgnded Tran$fvr8 At 31 March 2023 Development fund Charity Base fvnd Contingency fund General funds 207 300.000 200,000 259.372 (16,746) 23,461 300,Crf)O 200,000 208,258 410.230 (16,746) 1444,598) 759,579 450,230 33,492 (444,598) 731,719 Development fund This is to build further on the Arts Council Catalyst Evolve programme to enable the organizalion to diversify our income sources. Specifically funding the post of Communications & Fundraising Coordinator. Charity Base fund - to accumulate funds for future premises. Contingency Fund The fund is to cover and safeguard the future of the charity an(Jlor to be able to settle any liabilities in the event of its closure. Gèneral - Arts Council England and DfE furKling. restricted to 20% contrlbution for the non- direct delivery costs and restricted donatlons. The transfer from the General fund to the Music Hub and Arts Council Funded fund & In Hannony and Transition fund8 IS to cover the deficits on these activiti88. -28- NOTTINGHAM MUSIC SERVICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 18 Operating lease commitments At the reporting end datè the charity had outstanding ¢ommitments for future minimum lease payments under non-cancellabl8 operating18ases, which fall due as follows: 2024 2023 Wrthin one year 20,743 23,171 19 Related party transactions There wer8 no disclosabl8 relat8d party transactions duriro the year {2023- none). Analysls cf change8 In net fund8 The charity had no m8terial debt during the year. 21 Cash genorated from operatlons 2024 2023 Deficit for thé yèar (530) (57,505) Adjustments for. Depreciation and impaimient oftangible fixed assets 48.244 46.251 Movements in working capital: {Increas8) in d8btors Increasel(decrease) in ueditors Increase in deferred income {6,319) 22,839 46.934 (33.347) (29.511) 17,776 Cash genernted fromllabsorbed by) operati¢)ns 111.168 (58,336)