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2022-03-31-accounts

BRIGHTER SOUND LTD

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR

THE YEAR ENDED MARCH 31 2022

Company number 05100495 Charity number 1154803

BRIGHTER SOUND LTD ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

INDEX

Chair’s statement 1
Administrative information 2
Trustees’ and Directors’ annual report 3 – 9
Independent examiner’s report 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 – 24

BRIGHTER SOUND LTD CHAIR’S STATEMENT FOR THE YEAR ENDED MARCH 31 2022

As we continue to navigate the recovery from the pandemic our work has never felt more important, and as a Board we are delighted with the range and quality of work we have been able to deliver this year. The music industry is still transitioning out of the worst impacts of lockdown, and our priority is to ensure we maintain our support of young people, emerging artists and the freelance creatives we work with to support positive mental health, develop their practice and provide paid opportunities which lead to sustainable careers in music.

Our Young People’s work has focused on providing opportunities to return to face-to-face activity, working with partners including Young Manchester and the Prince’s Trust and continuing our much-valued Sing City workshops. Feedback has been positive about the value of being able to collaborate with peers after a period of isolation fuelled by social distancing.

Our Emerging Artist’s work has focused on helping young (and early to mid-career) creatives to re-engage with their practice, supporting them to access opportunities which were denied them over the last couple of years.

2021/22 also saw the completion of our Both Sides Now programme, our region-wide, research-led gender equality initiative funded by Arts Council England’s Ambition for Excellence strand. Both Sides Now culminated with the launch of our manifesto for a more equitable music sector at Depot Mayfield in Manchester on 8[th] March 2022. Over the five years of Both Sides Now - working in partnership with an incredible range of venues, creative and cultural organisations, music education hubs, labels and festivals across the North of England, the programme supported:

Our gender equality work continues, and we will use our manifesto as a tool to advocate, champion and facilitate changes in the music sector.

Strategically we have continued to lead on the Manchester Music City initiative and played a role in the Cultural Leadership Group. We are also the SME Lead, on Manchester’s Real Living Wage Anchors Group, which targets Manchester becoming a Real Living Wage City.

Operationally we have continued to strengthen the skills of our team, and provided opportunities supported by the Government’s Kickstarter campaign. We have focused on embedding our commitment to Equality, Diversity, and Inclusion in all its forms, providing our team and board with development opportunities which will improve our practice and decision-making.

In the financial year reported, performance was good, and we managed to achieve a largely balanced budget, increasing our reserves slightly, and investing in a new website which will be central to us increasing reach and developing income streams. In financial terms the 2022/3 financial year produces a degree of change as our two significant Arts Council England programmes are ending, or have ended, and our funding relationship with Youth Music which has provided a valuable foundation for our finances changes. We have secured new funding with Youth Music which covers 2023-26 and have applied to Arts Council England’s National Portfolio which would cover the same time period. Business planning accommodating these changes has provided us with an opportunity to reflect on the direction for Brighter Sound, and how we feel we can best serve our beneficiaries. Whilst the Arts Council’s NPO application is key, and a successful application would give us a significant foundation for our work, we do remind ourselves that we haven't been regularly funded in this way before, so have confidence that our alternative plans are robust enough to provide us with different plans should our NPO application not be successful. Both options would require a period of reflection and focus on how best to deliver, but we are confident of the future of Brighter Sound and the impact and value we bring. I am grateful to my fellow board members for their advice and support, our inspired and energetic Brighter Sound staff and freelancers and to all our funders.

Dr Virginia Tandy - Chair, Brighter Sound

1

BRIGHTER SOUND LTD ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED MARCH 31 2022

DIRECTORS

DIRECTORS M Ball S J Child (resigned 27/09/21) R Davies (appointed 5/08/21) J Harvie (appointed 25/10/21) W H A Lee (appointed 1/07/21) A G Lovatt J A Mundy (resigned 27/09/21) T F Rabbani S Rahim (appointed 1/07/21) L O Shaw (appointed 1/07/21) R M Shaw (appointed 1/07/21) Dr V A Tandy - Chair M Wilde D King Chief Executive G Davies Head of Operations & Finance KEY STAFF K Lowes Head of Programmes R Horn Head of Marketing & Communications REGISTERED OFFICE AND Green Fish Resource Centre PRINCIPAL PLACE OF BUSINESS 46-50 Oldham Street Manchester M4 1LE INDEPENDENT EXAMINER Peter Smith BA FCA DChA & ACCOUNTANTS HGA Accountants & Financial Consultants Ltd t/a Chittenden Horley – Chartered Accountants The Wesley Centre Royce Road, Hulme Manchester M15 5BP BANKERS Lloyds Bank Plc 42-46 Market Street Manchester M1 1PW

2

BRIGHTER SOUND LTD TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2022

The trustees present their annual report together with the financial statements of the charity for the year ended March 31 2022 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

REPORTING FRAMEWORK

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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 (FRS102) (effective 1 January 2019), referred to as the Charities SORP (FRS 102) (second edition – October 2019).

OBJECTIVES AND ACTIVITIES

Charitable objects

  1. The Charity is established to act as a resource for young people, living in the UK by providing advice and assistance and organising programmes of physical, educational and other activities as a means of:

  2. a. advancing in life and helping young people by developing their skills, capacities and capabilities to enable them to participate in society as independent, mature and responsible individuals;

  3. b. advancing education, particularly in music;

  4. c. relieving unemployment;

  5. d. Providing recreational and leisure time activity in the interests of social welfare for young people living in the area of benefit who have need by reason of their youth. Age, infirmity or disability, poverty or social and economic circumstances with a view to improving the conditions of life of such persons.

  6. Advancing education in the Arts by providing training in music, including working with emerging musicians who have been unable to find, or need support in finding employment.

Aims and Objectives for the year ending 31st March 2022

3

BRIGHTER SOUND LTD TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2022

ACTIVITIES, ACHIEVEMENTS AND PERFORMANCE

Objective 1: To act as a resource for young people living in the UK by providing advice and assistance and organising programmes of physical, educational or other activities:

Young Musicians Programme

Highlights for this year include:

Objective 2: Advancing education in the Arts by providing training in music including working with emerging musicians who have been unable to find or need support in finding employment.

Highlights for this year include:

Manchester Music City - Music Cities Network

We have continued our work as sector lead for Manchester, as part of the Music Cities Network. Manchester Music City aims to support the city’s successful and vibrant music sector, enhancing international relationships and sustaining an inclusive grass roots music ecology. We worked with a steering group of partners to inform the establishment of Manchester Music City as an independent organisation, and the adoption of appropriate objects and policies. This work continues, and the longer-term relationship between Brighter Sound and the new entity will follow. We also worked on a bid whereby Manchester would host the WOMEX festival in 2024. Notification of success will be known before the end of 2022. A successful bid would run through the new entity.

In partnership with the British Council WOMEXchange, an international exchange project for people making strides for and in their local music scene, we have been strengthening and building new musical partnerships between Manchester and the rest of the world.

4

BRIGHTER SOUND LTD TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2022

Public Benefit

The Charity has concern for the guidance for the charity commission guidance on Public benefit and Trustees and Management Personnel act and make decisions accordingly in line with this guidance. The Charity delivers a wide range of activities in the Public Benefit, described in detail above. In summary, our work in the public benefit includes reaching children and young people through music in order to give them personal, musical and life skills that can enable them to pursue a personal passion with support and training, improve their personal wellbeing, engage with other like-minded young musicians, and become aware, social, skilled and confident people.

Outcomes

Between 1st April 2021 - 31st March 2022, Brighter Sound produced and facilitated 39 separate projects over the year, delivering 304 sessions for 762 people, of which 374 were young people aged under 26. 25% of sessions were online, as we continue to deliver projects in a hybrid way. The gender split being 57% female, 24% male, 3% identifying as non-binary or preferring to selfdescribe. The remainder being unknown or preferring not to say.

Significant updates to our CRM system are due in December 2022 which will allow participants to apply or sign up for our projects directly into our database. This means participant data is captured directly, rather than in spreadsheets stored by each project manager, which has to be imported to the database at a later stage.

Reach, Marketing and Communications

This period our small yet dynamic marketing team has undergone a refresh of all areas of our marketing and communications strategy and activity, with the aim of improving reach and engagement with our key audience groups - young people, early career musicians and emerging industry professionals.

With support from specialist consultants where appropriate, the organisation now has a new audience-focused communications strategy, content strategy, refreshed brand identity, tone of voice guidelines This period our small yet dynamic marketing team has undergone a refresh of all areas of our marketing and communications strategy and activity, with the aim of improving reach and engagement with our key audience groups - young people, early career musicians and emerging industry professionals.

With support from specialist consultants where appropriate, the organisation now has a new audience-focused communications strategy, content strategy, refreshed brand identity, tone of voice guidelines and website, which is due to launch in November 2022. We hope these improvements will support our ability to engage new and existing audiences, and garner support from funders and individual donors alike, as well as increase our general brand awareness.

We have continued to invest in high-quality video footage to support our communications, working with Manchester-based filmmakers Triple Dot Makers on advocacy films, trailers for project call-outs and most recently, a Brighter Sound brand showreel. As our project delivery increased post-lockdown our communications output and digital engagement also increased. Our mailing list continues to be an important way of reaching audiences, with our subscribers increasing 10.2% since last period.

In this period the marketing team have continued to take advantage of the huge range of free webinars delivered by the Arts Marketing Association and the Arts Council’s Digital Culture Network to ensure our comms stay relevant and respond to the needs of our audiences as they begin to recover from the uncertainty of the pandemic.and website, which is due to launch in November 2022. We hope these improvements will support our ability to engage new and existing audiences, and garner support from funders and individual donors alike, as well as increase our general brand awareness.

We have continued to invest in high-quality video footage to support our communications, working with Manchester-based filmmakers Triple Dot Makers on advocacy films, trailers for project call-outs and most recently, a Brighter Sound brand showreel. As our project delivery increased post-lockdown our communications output and digital engagement also increased. Our mailing list continues to be an important way of reaching audiences, with our subscribers increasing 10.2% since last period.

In this period the marketing team have continued to take advantage of the huge range of free webinars delivered by the Arts Marketing Association and the Arts Council’s Digital Culture Network to ensure our comms stay relevant and respond to the needs of our audiences as they begin to recover from the uncertainty of the pandemic.

5

BRIGHTER SOUND LTD TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2022

FINANCIAL REVIEW

Overview

This year we are reporting a surplus on unrestricted funds of £1,150 with free reserves increasing to £71,499. We have also invested in our new website, due to be launched in November 2023, at which point we will commence depreciation.

As we move out of the most restrictive impacts of the pandemic, we were able to re-commence restricted fund activities for which we had accrued surplus restricted funds to deliver. This explains the reduction in restricted funds held at year end, and the restricted funds deficit for the year.

Core expenditure has remained largely similar. We took the decision, to support close cost management, to remain in lower-cost temporary office accommodation, on a lease with a short notice period. This provides us with the flexibility to reduce expenditure, whilst we consider our longer-term needs in terms of premises. Greater use of virtual working will be a factor on when we return to more permanent accommodation.

We are pleased to have navigated this period positively, from a financial perspective, whist maintaining reserve levels to support liquidity and to provide a strong base on which to build our delivery plans.

Risk management

The trustees have a risk management strategy which comprises: a rolling review of the risks the charity may face; the establishment of systems and procedures to mitigate those risks identified in the plan; and the implementation of procedures designed to minimise any potential impact on the charity should those risks materialise. The full board reviews this plan on a quarterly basis, focusing on new items and on anything scored as high risk.

During the financial year, our Finance Sub-committee has continued to meet monthly to provide increased scrutiny of our finances, and to ensure that risk is effectively managed in a timely manner. As the impacts of the pandemic continued to provide uncertainty, this forum provided invaluable advice and ensured that decisions could be stress tested before implementation.

Reserves

The company has targeted a level of free reserves (unrestricted reserves not invested in fixed assets or otherwise designated) of £60,000, approximately three months fixed running costs. At the year end its free reserves were £71,499. The reserves target will be reviewed further at the end of the 22/23 financial year, when Trustees will decide if the target remains appropriate.

Going concern

Whilst the changes to our relationship with historical regular funders will create new challenges, it also creates opportunities to refocus our multi-year funds. During 22/23 we have been scenario planning to ensure that we have plans which are not solely reliant on our Arts Council NPO application, or indeed any one individual funder. Diversifying our income streams and looking at more opportunities for earned income and donations has been a particular focus. Success in our Youth Music application reinforces our confidence in our ability to deliver projects which have demonstrable impact, which funders will support. With work already secured, and a revised business and fundraising plan we have no issues around declaring the organisation a viable going concern.

Pricing policy

Wherever possible, we offer our provision - workshops, residencies, masterclasses, mentoring, and support – Free of Charge to the end user. This is to ensure that finance is not a barrier to access, and to allow us to broaden the reach of our work.

6

BRIGHTER SOUND LTD TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2022

FUTURE PLANS

Over the next year Brighter Sound will work to develop greater structure & shape to our programme, scale & grow our successful models of delivery & deepen the reach & impact of our work and to build on what we have established to develop the diverse music creators & industry professionals of the future.

We plan to :-

As sector lead for Manchester Music City we will continue to support the city to build Manchester as a contemporary international brand to the global music industry; manage Manchester's membership of the Music Cities Network and work collaboratively with local and international partners; create and participate with international opportunities, networking and peer learning from cities and regions around the world; bid for and secure major national and international music events to take place in the city to promote Manchester as a music city, reinforcing its profile within the global music sector. Through this work we will ensure the equitable distribution of opportunities for diverse industry professionals and public audiences and work to combat systemic inequalities within the Manchester music ecology.

Brighter Sound will continue to prioritise inclusion and equity across all our areas of work both internally and externally. Working with our trustees, workforce, senior management team and partners to approach access in a granular way, seeking to understand difference and create a sense of belonging that goes beyond inclusion.

Strategic Developments

In the coming year we will continue to build on our period of visioning and business planning to take us through to 2026. In the next period our future funding will become clearer, and from this we will be able to refine our business and financial plans to complement the body of work we will be delivering.

We have a specific focus on broadening the reach of our work, building on the good work we have done on Equality, Diversity and Inclusion. We will continue to develop the impact and content of our programming, exploring new partnership opportunities, using our resources to maximum effect, and innovating to ensure our offer stays future facing, relevant and inspiring.

7

BRIGHTER SOUND LTD TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2022

STRUCTURE GOVERNANCE AND MANAGEMENT

Governing document

The charity is a company limited by guarantee governed by its memorandum and articles of association dated April 13 2004, as amended by special resolution(s) dated October 11 2013. It is a registered charity with the Charity Commission.

Members of the company

The members of the company comprise the Directors and such other persons who have been admitted to membership by the Directors in accordance with the Articles of Association. The minimum number of members is three and the maximum eleven.

Appointment of trustees/directors

The Trustees (who are also directors of the company) are appointed by the members in general meetings. The Directors have the power to co-opt. .

Co-opted directors/trustees hold office until the next AGM and are then eligible for election.

No Director can serve for more than six years, unless as a serving director they are elected chair in the fourth year of serving as a Director. In which case they may serve for up to a maximum of eight years providing they continue as chair of the Board.

New Trustees are nominated by existing Trustees and can be put forward by the company’s executive team for consideration by the board.

Trustee induction and training

Potential trustees are invited to meet the board and the executive team before attending a trustees’ meeting as an observer. Following this process, suitability is assessed, and suitable candidates are invited to become Trustees. On joining new Trustees are given an induction and a set of resources to support their introduction to the company and provide guidance on their obligations and responsibilities as a trustee, and their role for the Charity including the Charity Commission’s guidance on public benefit. Trustees are expected to attend training when requested including whole company visioning, and fundraising training relevant to their role as trustees.

Organisation

The minimum number of directors is three and the maximum fourteen. The board meets quarterly and there is a finance subcommittee.

An executive Director is appointed by the trustees to manage the day-to-day operations of the charity.

To facilitate effective operations, the executive Director has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance, employment and artistic performance related activity. The Director leads the executive team consisting of two senior managers (Head of Programmes and Head of Operations) three project managers associated with activity delivery, a communications coordinator, projects coordinator and a digital marketing apprentice

Pay and remuneration for senior staff

Pay and remuneration of key management personnel is agreed by trustees by ordinary resolution in relation to a company pay scale. Any changes to the level of pay or significant changes in working hours are agreed by trustees by ordinary resolution.

Related parties

None of our trustees receive remuneration or other benefit from their trustee role with the charity other than travel expenses which must be claimed. In the current year, no trustees claimed any expenses or remuneration.

Any connection between a trustee or senior manager of the charity with a production company, contracted supplier, practitioner or beneficiary must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party. The Charity has a Conflict-of-Interest Policy which is provided to all Trustees and adhered to by all parties.

If trustees undertake work for the charity outside of their role as trustees, they may not in any way influence or take part in the decision of trustees to engage their services and must declare in full any arrangements with the charity.

8

BRIGHTER SOUND LTD TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2022

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The trustees (who are also directors of Brighter Sound Ltd for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SMALL COMPANY PROVISIONS AND APPROVAL

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption.

Approved by the Board of Trustees and signed on its behalf by:

Virginia Tandy

Dr Virginia Tandy - Chair of Trustees

Date: 11/11/22

9

INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF THE BRIGHTER SOUND LTD FOR THE YEAR ENDED MARCH 31 2022

I report to the charity trustees on my examination of the accounts of the company for the year ended March 31 2022 which are set out on pages 11 to 24.

Responsibilities and basis of report

As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the company’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 of Institute of Chartered Accountants in England and Wales (ICAEW) 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 company as required by section 386 of the 2006 Act; or

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

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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.

Peter Smith

Peter Smith BA FCA DChA

For and on behalf of: HGA Accountants & Financial Consultants Ltd t/a Chittenden Horley - Chartered Accountants The Wesley Centre Royce Road, Hulme Manchester M15 5BP Date: 11/11/22

10

BRIGHTER SOUND LTD STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED MARCH 31 2022

Notes
Incoming resources from generated funds:
Donations
2
Charitable activities
3
Other trading income
4
TOTAL INCOME
EXPENDITURE
Costs of raising funds
5
Expenditure on charitable activities
6
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
BEFORE TRANSFERS
Transfers between funds
NET MOVEMENT IN FUNDS
TOTAL FUNDS :
BROUGHT FORWARD
14
CARRIED FORWARD
14		 Unrestricted
Funds
£
96,085
32,914
-		 Restricted
Funds
£
45,087
554,078
-		 Total
Total
2022
2021
£
£
141,172
213,614
586,992
537,687
-
1,950
128,999 599,165 728,164
753,251
7,120
120,729		 -
688,635		 7,120
12,623
809,364
479,052
127,849 688,635 816,484
491,675
1,150
-		 (89,470)
-		 (88,320)
261,576
-
-
1,150
90,149		 (89,470)
382,086		 (88,320)
261,576
472,235
210,659
91,299 292,616 383,915
472,235

The notes on pages 14 to 24 form part of these financial statements.

11

BRIGHTER SOUND LTD BALANCE SHEET AS AT MARCH 31 2022

Notes
FIXED ASSETS
Tangible Assets
10
Intangible Assets
11
CURRENT ASSETS
Debtors
12
Cash at Bank and in Hand
CREDITORS
Amounts falling due in one year
13
NET CURRENT ASSETS
NET ASSETS
FUNDS
Unrestricted
General fund
14
Restricted
14
TOTAL FUNDS		 2022
£
277,392
123,850		 2022
2021
2021
£
£
£
-
1,161
19,800
-
19,800
1,161
84,566
428,037
512,603
41,529
364,115
471,074
383,915
472,235
91,299
90,149
292,616

382,086
383,915
472,235
401,242
37,127

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

For the year ending March 31 2022, the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies and no notice has been deposited under section 476 requiring the company to obtain an audit of its accounts for the year in question.

Directors’ responsibilities

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

The notes on pages 14 to 24 form part of these financial statements.

Approved by the Board and authorised for issue on: 11/11/22

And signed on their behalf by:

Virginia Tandy

Dr Virginia Tandy - Chair of Trustees

Company registration number 05100495

12

BRIGHTER SOUND LTD STATEMENT OF CASH FLOWS AS AT MARCH 31 2022

notes
Cash used in operating activities
16
Cashflows from investing activities
Purchase intangible fixed assets
Cash provided by/(used in) investing activities
Cashflows from financing activities
Repayment of borrowing - Finance lease
Cash used in financing activities
Increase/(decrease) in cash & cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
Cash and cash equivalents consist of:
Cash at bank and in hand		 2022
2021
£
£
(284,003)
265,328
(19,800)
-
(19,800)
-
(384)
(684)
(384)
(684)
(304,187)
264,644
428,037
163,393
123,850
428,037
123,850
428,037
123,850
428,037

Details of the movements in net debt are given in note 18.

The notes on pages 13 to 24 form part of these financial statements.

13

BRIGHTER SOUND LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

1 ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared: under the historic cost convention; in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) effective January 1 2019 (second edition – October 2019); FRS102; and the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS102.

The accounts are prepared in £ sterling, which is the functional currency.

Income recognition

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably. The following applies to particular types of income:

Grants , whether of a capital or revenue nature, are recognised when the charity has entitlement to the funds, any performance conditions have been met and it is probable that the income will be received.

Donations from individuals and other bodies (not being of the nature of a grant) are recognised when receivable.

Earned income is measured at the fair value of the consideration received or receivable for services and goods supplied, net of discounts and VAT.

Deferred income

Income is only deferred and included in creditors when:

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds

including those associated with fundraising activities, managing investments and commercial trading by the subsidiary company.

Charitable activities costs of undertaking the work of the charity.

The charity is registered for VAT and is able to recover some of the input tax charged as it relates to Vatable supplies. Costs are stated net of VAT where charged and irrecoverable VAT is included as a separate charge either within direct costs or support costs as appropriate.

Allocation of support costs

Support costs are those functions which assist the work of the charity either by supporting the delivery of charitable activities or by supporting the generation of funds. They include staff costs; depreciation; legal and financial costs; marketing, network, research & organisational costs; office, equipment & IT cost; and property costs. The basis of allocations is set out in note 6.

14

BRIGHTER SOUND LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

1 ACCOUNTING POLICIES (continued)

Tangible fixed assets and depreciation

Individual fixed assets costing more than £500 are capitalised at cost and are depreciated over their estimated useful lives on a straight-line basis as set out below.

Depreciation rates are as follows:

Equipment 10% p.a Computer equipment 33%pa

Intangible fixed assets

Intangible assets costing more than £500 are capitalised. The charity’s website is classified as an intangible fixed assets and the costs of its development have been capitalised. The website is being amortised over its useful economic life of five years on a straight-line basis.

Debtors

Trade and other debtors are recognised at the settlement amount due and prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

Financial instruments

The charity has only basic financial instruments which are initially recorded at cost, subsequently measured at their settlement value.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

2 DONATIONS
ACE CRF1
EsmeéFairbairn
GMCA - grant re staffing
HMRC - CJRS
Kickstart
MCC - COVID support
MCC - grant re staffing
Donations
General donations		 Unrestricted 2022
Restricted		 Total Unrestricted 2021
Restricted
Total
£
-
60,000
-
12,428
23,000
-
657		 £
25,000
-
14,544
-
5,543
-
-
-		 £
25,000
60,000
14,544
12,428
5,543
23,000
-
657		 £
-
60,000
-
61,514
-
10,000
-
2,998		 £
£
51,555
51,555
-
60,000
7,272
7,272
-
61,514
-
-
-
10,000
20,275
20,275
-
2,998
96,085 45,087 141,172 134,512 79,102
213,614

15

BRIGHTER SOUND LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

Unrestricted
£
3 INCOME FROM CHARITABLE ACTIVITIES
Youth Music
4,558
Emerging Musicians
385
Workshops, consultancy & other
27,971
32,914
Income is analysed as follows:
Youth Music
Love Music Trust
-
Manchester City Council
-
Prince's Trust
-
Youth Music Grant
-
Young Manchester
-
Fees and other income
4,558
4,558
Emerging Musicians
ACE G4A - Both Sides Now
-
British Council - Both Sides Now
-
Manchester C C - Both Sides Now
-
Help Musicians UK
-
Mayfield Arts Trust
-
PRS Foundation
-
Other income
385
385
Workshops, consultancy & other activities
ACE - transforming leadership
-
British Council
-
MCC - Music Cities Network
-
MCC - Danish Cities
-
My Hub Music trust - Manchester
experimental orchestra
-
Sick! Festival- channelled grant
-
Youth Music - Music Cities Network
-
Other income
27,971
27,971		 Unrestricted 2022
Restricted		 Total Unrestricted 2021
Restricted
Total
£
166,711
96,242
291,125		 £
171,269
96,627
319,096		 £
3,550
11,500
9,173		 £
£
280,949
284,499
31,040
42,540
201,475
210,648
32,914 554,078 586,992 24,223 513,464
537,687
-
-
-
-
-
4,558		 -
4,781
9,130
152,800
-
-		 -
4,781
9,130
152,800
-
4,558		 -
-
-
-
-
3,550		 5,000
5,000
12,000
12,000
15,520
15,520
235,000
235,000
13,429
13,429
-
3,550
4,558 166,711 171,269 3,550 280,949
284,499
-
-
-
-
-
-
385		 59,508
9,742
19,492
1,500
-
6,000
-		 59,508
9,742
19,492
1,500
-
6,000
385		 -
-
-
-
-
11,500		 -
-
-
-
13,500
13,500
11,540
11,540
6,000
6,000
-
11,500
385 96,242 96,627 11,500 31,040
42,540
202,500
12,600
57,125
5,000
12,000
1,900
-
-		 202,500
12,600
57,125
5,000
12,000
1,900
-
27,971		 -
-
-
-
-
-
-
9,173		 101,200
101,200
50,000
50,000
28,175
28,175
-
-
-
-
17,100
17,100
5,000
5,000
-
9,173
27,971 291,125 319,096 9,173 201,475
210,648

4 OTHER TRADING INCOME

Sponsorship - mentoring programme - - - 1,950 -
1,950
- - - 1,950 -
1,950

16

BRIGHTER SOUND LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

5 COSTS OF RAISING FUNDS
Direct costs
Support costs
6 CHARITABLE EXPENDITURE
Youth Music
Emerging Musicians
Workshops, consultancy & other
Staffing funding
Kickstart
ACE CRF1 funded
Expenditure is analysed as follows:
2021/22
Youth Music
Emerging Musicians
Workshops, consultancy & other
2020/21
Youth Music
Emerging Musicians
Workshops, consultancy & other		 Unrestricted 2022
Restricted		 Total Unrestricted 2021
Restricted
Total
£
258
6,862		 £
-
-		 £
258
6,862		 £
216
12,407		 £
£
-
216
-
12,407
7,120 - 7,120 12,623 -
12,623
11,431
110,622
43,763
(14,544)
(5,543)
(25,000)		 195,235
137,556
310,757
14,544
5,543
25,000		 206,666
248,178
354,520
-
-
-		 40,627
119,540
55,050
(34,819)
-
(51,555)		 165,086
205,713
20,922
140,462
77,827
132,877
34,819
-
-
-
51,555
-
120,729 688,635 809,364 128,843 350,209
479,052
Direct
Costs
£
96,427
136,238
172,107		 Direct
Salaries
£
70,066
58,375
145,772		 Support
Costs
Total
£
£
40,173
206,666
53,565
248,178
36,641
354,520
404,772 274,213 130,379
809,364
60,771
13,112
58,612		 71,233
4,500
35,083		 73,709
205,713
122,850
140,462
39,182
132,877
132,495 110,816 235,741
479,052

17

BRIGHTER SOUND LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

7 SUPPORT & GOVERNANCE COSTS

SUPPORT & GOVERNANCE COSTS
2021/22
Support costs
Staff costs
Depreciation & amortisation
Legal & financial
Marketing
Network, research and organisational
Office, equipment and IT
Property costs
Governance costs
Staff costs
Professional fees
2020/21
Support costs
Staff costs
Depreciation & amortisation
Legal & financial
Marketing
Network, research and organisational
Office, equipment and IT
Property costs
Governance costs
Staff costs
Professional fees		 Fundraising
£
1,232
58
377
1,945
1,025
692
1,117		 Youth Music
£
7,390
348
2,259
11,671
6,148
4,154
6,703		 Emerging
Musicians
£
9,854
464
3,012
15,561
8,198
5,538
8,938		 Other
Total
Activities
2022
£
£
6,159
24,635
290
1,160
1,883
7,531
9,726
38,903
5,124
20,495
3,462
13,846
5,586
22,344
6,446 38,673 51,565 32,230
128,914
250
166		 1,500
-		 2,000
-		 1,250
5,000
3,161
3,327
416 1,500 2,000 4,411
8,327
6,862 40,173 53,565 36,641
137,241
Fundraising
£
8,151
124
330
598
1,078
705
1,049		 Youth Music
£
48,908
746
1,979
3,586
6,468
4,227
6,295		 Emerging
Musicians
£
81,514
1,244
3,298
5,977
10,780
7,045
10,492		 Other
Total
Activities
2021
£
£
24,454
163,027
373
2,487
989
6,596
1,793
11,954
3,234
21,560
2,114
14,091
3,148
20,984
12,035 72,209 120,350 36,105
240,699
250
122		 1,500
-		 2,500
-		 750
5,000
2,327
2,449
372 1,500 2,500 3,077
7,449
12,407 73,709 122,850 39,182
248,148

Support costs are allocated on the following basis:

Area

Staff costs, training and recruitment

basis

estimate of staff time

Office rent and service charge

head count based on estimate of staff time.

Other costs

estimate of resources used.

18

BRIGHTER SOUND LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

**8 ** STAFF INFORMATION 2022 2021
£ £
**a ** Employees
Salaries and wages 284,201 261,710
Employer's pension contributions 5,705 5,308
Employers NI allowance (4,000) (4,000)
Employer's NI contributions 23,647 21,133
309,553 284,151
No employees earned more than £60,000 p.a. in either year.
**b ** Key management personnel
The key management of the charity comprise the trustees and senior staff (as set out on page1).
The trustees do not receive any remuneration for their services.
The total employee benefits, including employer pension and NI contributions, of other key management were as follows:
135,550 122,249
**c ** Average staff numbers
The average number of employees was as follows:-
Average Average
number number
13 11
**9 ** NET INCOME/(EXPENDITURE) BEFORE TRANSFERS (for the Group)
This is stated after charging/(crediting): £ £
Independent examiners & accountants fees:
Examination 850 800
Accountancy fees 1,894 1,558
Other services 180 -
Depreciation of fixed assets 1,161 1,168
Amortisation of intangible assets - 1,320
Trustees remuneration - -
Trustees expenses - -
Number Number
Trustees claiming expenses - -

The net book value of assets held on finance leases included in tangible assets in note 9 was £nil (2021 - £1), and depreciation in 20/21 was £543 (this year none).

19

BRIGHTER SOUND LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

10 TANGIBLE FIXED ASSETS
Cost or valuation
As at April 1 2021
As at March 31 2022
Depreciation
As at April 1 2021
Charge for the year
As at March 31 2022
Net Book Value
As at March 31 2022
As at March 31 2021
11 INTANGIBLE FIXED ASSETS
Cost
As at April 1 2021
Additions
Disposals
As at March 31 2022
Amortisation
As at April 1 2021
Charge for the year
Disposals
As at March 31 2022
Net Book Value
As at March 31 2022
As at March 31 2021
12 DEBTORS
Trade debtors
Income receivable
Prepayments
13 CREDITORS falling due within one year
Trade creditors
Other taxes and social security
Accruals
Finance lease creditor
Income and grants in advance		 Equipment
£
16,624		 Computers &
Office
Equipment
Total
£
£
24,034
40,658
16,624 24,034
40,658
16,624
-		 22,873
39,497
1,161
1,161
16,624 24,034
40,658
- -
-
- 1,161
1,161
2022
£
17,391
258,155
1,846		 Website
Total
£
£
6,600
6,600
19,800
19,800
(6,600)
(6,600)
19,800
19,800
6,600
6,600
-
-
(6,600)
(6,600)
-
-
19,800
19,800
-
-
2021
£
1,200
83,366
-
84,566
29,829
5,221
2,195
384
3,900
41,529
277,392
24,986
6,658
5,483
-
-
37,127

20

BRIGHTER SOUND LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

14 STATEMENT OF FUNDS

2021/22
Income
Expenditure
transfers
31/03/2022
£
£
£
£
128,999
(109,004)
-
91,299
-
(18,845)
-		 91,299 -
-
-
-
114,035
15,160
163,421		 292,616 383,915
- -
-
-
-
-
-		 - -
(127,849) (25,000)
(14,544)
(5,543)
(195,235)
(137,556)
(310,757)		 (688,635) (816,484)
128,999 25,000
14,544
5,543
-
166,711
96,242
291,125		 599,165 728,164
b/f and c/f
31/03/2021
01/04/2021
£
71,304
18,845		 90,149 -
-
-
-
142,559
56,474
183,053		 382,086 472,235
2020/21
01/04/2020
Income
Expenditure
transfers
£
£
£
£
70,930
160,685
(141,466)
(18,845)
-
-
-
18,845		 - -
-
-
-
-
-
-		 - -
(141,466) (51,555)
(14,544)
-
(20,275)
(165,086)
(20,922)
(77,827)		 (350,209) (491,675)
160,685 51,555
7,272
-
20,275
280,949
31,040
201,475		 592,566 753,251
70,930 -
7,272
-
-
26,696
46,356
59,405		 139,729 210,659

21

BRIGHTER SOUND LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

14 STATEMENT OF FUNDS (continued)

2021/22
Income
Expenditure
transfers
31/03/2022
£
£
£
£
-
(4,980)
-
-
4,781
(220)
-
4,561
9,130
(6,989)
-
3,064
152,800
(167,086)
-
106,410
-
(15,960)
-
-
-
-
-		 114,035 -
-
-
5,478
7,732
1,950
-		 15,160 86,782
33,837
6,102
22,262
5,000
9,438
-		 163,421
- -
-
-
-
-
-
-		 - -
-
-
-		 -
(195,235) (94,376)
(9,742)
(19,492)
(9,896)
-
(4,050)
-		 (137,556) (229,938)
(16,163)
(6,498)
(49,844)
-
(2,562)
(5,752)		 (310,757)
166,711 59,508
9,742
19,492
1,500
-
6,000
-		 96,242 202,500
-
12,600
57,125
5,000
12,000
1,900		 291,125
b/f and c/f
31/03/2021
01/04/2021
£
4,980
-
923
120,696
15,960
-		 142,559 34,868
13,874
7,732
-
-		 56,474 114,220
50,000
-
14,981
-
-
3,852		 183,053
2020/21
01/04/2020
Income
Expenditure
transfers
£
£
£
£
-
5,000
(20)
-
-
12,000
(12,000)
-
-
15,520
(14,597)
-
19,904
235,000
(134,208)
-
6,792
13,429
(4,261)
-
-
-
-		 - -
-
-
-		 - -
-
-
-
-
-		 -
(165,086) (6,612)
(4,502)
(3,808)
(6,000)
-		 (20,922) (42,635)
-
-
(21,944)
-
(13,248)		 (77,827)
280,949 -
13,500
11,540
6,000
-		 31,040 101,200
50,000
-
33,175
-
-
17,100		 201,475
26,696 41,480
4,876
-
-
-		 46,356 55,655
-
-
3,750
-
-
-		 59,405
Youth Music
Love Music Trust
Manchester City Council
Prince's Trust
Youth Music Grant
Young Manchester
Donations
Emerging Musicians
ACE/YM - Both Sides Now
British Council - Both Sides Now
Manchester C C - Both Sides Now
Help Musicians UK
Mayfield Arts Trust
PRS Foundation
Other grants
Other activities
ACE - transforming leadership
British Council - Womex
British Council - We are equals
Music Cities Network
MCC - Danish Cities
My Hub Music trust - Manchester
experimental orchestra
Sick! Festival- channelled grant

22

BRIGHTER SOUND LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

15 ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS
Company fund balances at March 31 2022
are represented by:-
Intangible fixed assets
Net current assets
Free Reserves:
Net current assets		 General
Designated
£
£
19,800
-
71,499
-
Unrestricted		 Restricted
Total
Funds
£
£
-
19,800
292,616
364,115
91,299 - 292,616
383,915
71,499
Company fund balances at March 31 2021
are represented by:-
Tangible fixed assets
Net current assets		 General
Designated
£
£
1,161
-
70,143
18,845
Unrestricted		 General
Designated
£
£
1,161
-
70,143
18,845
Unrestricted		 Restricted
Total
Funds
£
£
-
1,161
382,086
471,074
71,304 18,845 382,086
472,235

16 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES

Net income/(expenditure)
Add back depreciation
Add back amortisation intangible assets
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash generated from/(used in) operating activities		 2022
2021
£
£
(88,320)
261,576
1,161
1,168
-
1,320
(192,826)
(23,674)
(4,018)
24,938
(284,003)
265,328

17 MOVEMENT IN NET DEBT

MOVEMENT IN NET DEBT
Cash and cash equivalents
Cash at bank and in hand
Debt
Finance lease obligations
Cash and cash equivalents net of debt		 at 31/3/21
£
428,037
384		 cashflows
£
304,187
-		 leases
£
-		 cash
as 31/3/22
£
£
-
123,850
(384) - -
-
427,653 123,850

23

BRIGHTER SOUND LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

18 CONSTITUTION

The Company is limited by guarantee and does not have a share capital. In the event of the Company being wound up the members are committed to contributing £1 each.

19 TAXATION

The company is a registered charity and is entitled to claim annual exemption from UK corporation tax under sections 466 to 477 of the Corporation Tax Act 2010.

20 CAPITAL COMMITMENTS

The company had no capital commitments at the year end (2021 - none)

21 RELATED PARTY TRANSACTIONS

There were no related party transactions in either year which are required to be disclosed.

22 LEASE COMMITMENTS

The company had no commitments under operating leases (2021 - none).

The company has the following commitments under finance lease:

Payable within one year
Payable between 2 and 5 years
Less interest		 -
400
-

-
-
400
-
(16)
-
384

24