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2021-08-31-accounts

Charity Registration No. 1159622

Company Registration No. 09268124 (England and Wales)

CORNWALL MUSIC SERVICE TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

CORNWALL MUSIC SERVICE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees D Fryer
A Gordon-Brown
R Thomas
A Retallack
P Kneebone
J Bailey
D Solly
E Sibley
JA Scarborough
A Johnson
R Bates (Appointed 26 April 2021)
J Brant (Appointed 26 April 2021)
Charity number 1159622
Company number 09268124
Registered office Truro School
Trennick Lane
TRURO
Cornwall
TR1 1TH
Auditor RRL LLP
Peat House
Newham Road
TRURO
Cornwall
TR1 2DP
Bankers Barclays Bank Plc
1 Churchill Place
LONDON
E14 5HP
Solicitors Foot Anstey LLP
High Water House
Malpas Road
TRURO
Cornwall
TR1 1QH

CORNWALL MUSIC SERVICE TRUST

CONTENTS

Page
Trustees report 1 - 10
Statement of Trustees responsibilities 11
Independent auditor's report 12 - 16
Statement of financial activities 17
Balance sheet 18
Statement of cash flows 19
Notes to the financial statements 20 - 34

CORNWALL MUSIC SERVICE TRUST

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees present their annual report and financial statements for the year ended 31 August 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 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 (FRS 102) (effective 1 January 201 6 )”

Objectives and activities

Charitable Objec ts (for the Public Benefit)

Aims

Our Vision

We aspire to become a leading Music Service in the United Kingdom.

Our Mission

To offer high quality music and performing arts education and related opportunities that support the aspirations of children, young people and adults in Cornwall and beyond.

Our Values

Our work will be guided by our commitment to the following values:

Quality: We strive for excellence through continuous improvement in all areas of our work.

Inclusiveness: We respect people, value diversity and are committed to equality and open access.

Inspiration: We encourage imaginative and creative approaches in our activities.

Innovation: We welcome new developments and their application in music education.

Health and Wellbeing: We believe in the health and wellbeing benefits of engagement with music.

Caring: We believe in an understanding and compassionate ethos for our staff, students and all those we engage with.

Collaboration: We foster strong partnerships and links with other organisations and individuals.

Enjoyment: We see this as one of the hallmarks of our success.

CORNWALL MUSIC SERVICE TRUST

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

Our broad objectives can be grouped as follows:

Learner Experience

Partnership with Educational Establishments

Service Development

Organisational Framework

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

CORNWALL MUSIC SERVICE TRUST

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

Activities

Cornwall Music Service Trust provides music education for in excess of 10 ,000 pupils across all key stages and including further and higher education.

Cornwall Music Service Trust devotes significant time and resources to engagement with the local community, further details of which are given in the Public Benefit section below.

The charity's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the charity continues and that the appropriate training is arranged. It is the policy of the charity that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Bursary and Grant Making Policy

Access to music education we offer should not be restricted to those who can afford our fees. As a registered provider for the Cornwall Music Education Hub, an arm of Cornwall Council, Cornwall Music Service Trust can offer subsidised activities to those children currently eligible for means tested free school meals, children currently in care, children with one or more parents serving in the British Armed Forces, children or a parent in receipt of Disability Living Allowance and children with a Statement of Special Educational Needs. In addition Cornwall Music Service Trust offers, on an application an d audition basis, an award scheme to those children who, at all levels, show exceptional talent. A successful candidate will be entitled to a subsidised one to one lesson funded internally by Cornwall Music Service Trust.

Volunteers

Three working groups of volunteers have been established by the Board of Trustees these being: Funding Working Group - established to look at all aspects of fundraising including potential funding opportunities from external bodies and working within the Terms & Conditions set by the Board of Trustees. Advisory Panel - a panel of educators, musicians etc. that can be called upon for external advice to support and aid the Board of Trustees and Head of Service. Early Years Steering Group - following its objectives and aims, Cornwall Music Service Trust has embarked on an Early Years Music Service for 0-5s. To effectively implement this delivery CMST has called upon and will continue to draw upon the expertise of many Early Years practitioners.

Strategic report

The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the Trustees to present a strategic report.

CORNWALL MUSIC SERVICE TRUST

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

Achievements and performance

Cornwall Music Service Trust faced another challenging academic 2020/2021 year. After a phased and partial reintroduction into educational settings at the start of September 2020 a further lockdown in January 2021 curtailed much of the in person delivery. Opposed to previous lockdown measures children were committed heavily to homeschooling which created timetabling challenges for CMST staff to deliver lessons virtually, consequently delivery during the 3rd lockdown was very minimal. This was also relevant to much of the other activities CMST is accustomed to delivering, in particular ensemble rehearsals and performances were all cancelled but certain groups did embark on virtual projects but the enthusiasm for such projects was waning.

It was during this period where focus on training and developing MusicEl was given. Staff were able to access online courses for statutory training requirements such as Safeguarding and Child Protection and were also encouraged to explore non-compulsory but recommended training courses to help their professional development. MusicEl development, being the reaction to the pandemic and the new initiative for online learning courses for CMST students, was able to continue course creation and allowed children to engage with courses that had already been created. Engagement with the platform so far has been modest but recently the MusicEl platform has been presented at the national Music Mark conference gaining much interest from other Music Services and Hubs.

After the third lockdown was lifted there was much work done to give settings confidence that it was safe and more than needed for CMST to return to in person delivery wherever appropriate. This is where the new management structure cited in last year's Trustees report realised its true potential. The Area Leads having a geographical targeted, personal approach meant that many more schools opened their doors to CMST staff more readily than if many individuals had tried to negotiate this with settings. These Area Leads who were supported by Cross Service and Instrumental Leads could draw on the work of the Head of Service who produced detailed risk assessments and Health and Safety policies to show settings that along with national guidelines music needed to be back at the heart of schools. A considered and risk assessed approach allowed for the majority of the other activities that CMST was used to delivering could be put back into action. There were some elements that didn’t happen as planned such as the annual CMST summer school and sadly some musicians disengaged from ensemble music making due to finding other interests.

Importantly CMST was able to demonstrate to external funders that projects could be modified and still delivered to satisfy funding requirements. One such example is the Dalla Project funded by Arts Council England. This project was an Early Years Music initiative that flipped to an online alternative immediately. Materials were shared digitally and in reality there was a wider engagement than would have been experienced if the project had been delivered in person. Early Years Music will see a change in senior leadership with Ann Stott retiring and after a successful interview the appointment of Emily Garrod as her replacement. Early Years Music will have substantial support over the coming years due to the creation of the James Sargent Early Years Music Education Trust (JSEYMET). JSEYMET was established by former Trustee James Sargent who sadly passed away in March 2020. His bequeathed estate has meant a substantial investment in JSEYMET which the sole beneficiary is to be CMST.

During this very turbulent time CMST supported it’s staff exceptionally well. Mental health and wellbeing was core to our approach and financially staff have and continue to be supported so that no one is disadvantaged due to the pandemic. Furthermore CMST managed to develop the organisation by absorbing a long standing Music Therapy charity, Cornwall Music Therapy Trust (CMTT). The absorption also gave rise to how best to govern the cash assets received from CMTT which in turn informed the decision to create the Music Therapy Steering Group. The creation of this group which has appropriate terms of reference from the Board of Trustees of CMST has brought together a wider representation of people and organisations that are passionate about Music Therapy, a very positive step for the clients Music Therapy serves.

Further success in Cultural Recovery Grant Funding was also witnessed in the year ended 2021. This crucial funding has enabled CMST to develop its offer to children and young people along with supporting its network of professionals who are the greatest asset CMST has.

CORNWALL MUSIC SERVICE TRUST

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

Fundraising and Development

The work towards increasing the development and fundraising activity within Cornwall Music Service Trust enables the fulfilment of its charitable objectives.

No professional fundraisers are used.

The Charity always adheres to best practice when working with vulnerable children and adults. Its safeguarding policy covers all areas of the Charity's activities including any fundraising activities.

Financial review

The Company's principal source of income is music tuition fees. All of Cornwall Music Trust's expenditure was spent in advancement of its charitable objectives.

The net incoming resources for the year were £438,399 (2020: Outgoing resources £21,938) .

Reserves Policy

The reserves policy of Cornwall Music Service Trust has been reviewed by the Board of Trustees during the year. Free reserves are regarded as those unrestricted funds that have not been designated for any specific purpose. At 31 August 20 21 the Company had free reserves of £ 527,790.

The Board of Trustees have carefully considered the level of reserves appropriate to be held by Cornwall Music Service Trust necessary for contingencies and movements in working capital. Having regard to the likelihood of financial risks and mitigating factors including its group structure, it considers the maximum level of free reserves required to be the equivalent of 2 months of gross salary costs, approximately 17% of turnover. The trustees aim is to increase this to 4 months of gross salaries in the light of the effects of the Covid-19 pandemic. The trustees are pleased to report an increase in unrestricted funds of £481,945 in the year.

The Board of Trustees have passed this proposal and Cornwall Music Service Trust is working towards accumulating the free reserves aforementioned.

The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

CORNWALL MUSIC SERVICE TRUST

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

Principal risks and uncertainties

Cornwall Music Service Trust through its Business Plan Development has undertaken a SWOT and PEST analysis. The 'threat' element which will be relevant to principal risks and uncertainties, has identified the following:

Political

Economic

Social

Technological

CORNWALL MUSIC SERVICE TRUST

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

Plans for Future Periods

Cornwall Music Service Trusts "Potential Future Activities" (detailed in its Business Plan), as drawn up by the Senior Management Team, after consultation with the key stakeholders, and as approved by the Board of Trustees, provides the focus for the future development of Cornwall Music Service Trust. In particular, the future activities embrace the aspirations of Cornwall Music Service Trust for teaching developments, the growth of marketing, pupil numbers, enhanced staffing and the development of its delivery.

CORNWALL MUSIC SERVICE TRUST

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management

Governing Document

The organisation is a charitable company limited by guarantee, incorporated on the 16 October 2014 and registered as a charity on 15 December 2014. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under is Articles of Association. In the e vent of the company being wound up members are required to contribute and amount not exceeding £1.

Governing Body

The directors of the company are also charity trustees for the purposes of charity law and under the company's Articles are known as members of the Board of Trustees. Under the requirements of the Memorandum and Articles of Association the members of the Board of Trustees are elected to serve for a period of three years after which they must be re-elected at the next General Meeting. All members of the Board of Trustees give their time voluntarily and received no benefits from the charity. As Cornwall Music Service Trust has many roles to play in the educational sector the Trustees have been selected for the wide and diverse skill base they have to offer. In a n effort to maintain this broad skill mix, members of the Board of Trustees are requested to provide a list of their skills (and update it each year) and in the event of particular skill being lost due to retirements, individuals are approached to offer themselves for election to the Board of Trustees.

CORNWALL MUSIC SERVICE TRUST

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT)

FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees, who are also the directors for the purpose of company law, and who served during the year were:

D Fryer A Gordon-Brown R Thomas A Retallack P Kneebone J Bailey B Wade (Resigned 4 October 2021) D Solly E Sibley JA Scarborough A Johnson R Bates (Appointed 26 April 2021) J Brant (Appointed 26 April 2021)

Recruitment and Training of Trustees

Trustees are nominated and appointed by the Board of Trustees. Appointments are for a period of three years which is renewable. The induction of new Trustees is the responsibility of the Chair and the Head of Service . All trustees, due to the nature of the work of Cornwall Music Service Trust, have enhanced Disclosure & Barring Service checks and are routinely updated on Safeguarding for Children and Vulnerable Adults.

Two new Trustees were appointed during the year.

Organisational Structure

The Board of Trustees for Cornwall Music Service Trust, which meets at least three times a year, are responsible for the general policy and strategic direction of Cornwall Music Service Trust. In addition the Board of Trustees are legally responsible for the overall management and control of Cornwall Music Service Trust. The work of implementing most of their policies and day to day management is delegated to the Head of Service, supported by his Senior Team Managers. At present there are 10 Trustees from a variety of professional backgrounds relevant to the work of Cornwall Music Service Trust who form the Board of Trustees. A Clerk to the Board of Trustees, who is not a Trustee, is responsible for ensuring timely agendas and accurate minutes for all Trustee meetings under the guidance of the Chair of Trustees and Head of Service.

National benchmarking is used in setting pay for key management personnel but always with the Charity's affordability in mind.

Related Parties

CMST will partner with a number of local organisations. These include the following:

Cornwall Music Education Hub for curriculum leadership, ensemble leadership, ensemble coordination, ensemble staffing, first access management and liaison, first access provision and minority instrument scheme delivery. Cornwall Council Local Authority for SEN delivery and inclusion delivery (disadvantaged families remissions funded). Cornwall ' s Schools for ensemble support, classroom support and curriculum delivery. Further Education Colleges & Higher Education Institutions for strategic links for service development and training of music teachers

CORNWALL MUSIC SERVICE TRUST

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT)

FOR THE YEAR ENDED 31 AUGUST 2021

Employee involvement

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the charity continues and that the appropriate training is arranged. It is the policy of the charity that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Disabled persons

The charity's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Auditor

In accordance with the company's articles, a resolution proposing that RRL LLP be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees r eport, including the strategic report, was approved by the Board of Trustees.

D Fryer

Trustee Dated: 10 February 2022

CORNWALL MUSIC SERVICE TRUST

STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees, who are also the directors of Cornwall Music Service Trust for the purpose of company law, are responsible for preparing the Trustees 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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 charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CORNWALL MUSIC SERVICE TRUST

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF CORNWALL MUSIC SERVICE TRUST

Opinion

We have audited the financial statements of Cornwall Music Service Trust (the ‘charity’) for the year ended 31 August 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

The impact of macro-economic uncertainties on our audit

Our audit of the financial statements requires us to obtain an understanding of all relevant uncertainties, including those arising as a consequence of the effects of macro-economic uncertainties such as Covid-19 and Brexit. All audits assess and challenge the reasonableness of estimates made by the directors and the related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the charities future prospects and performance.

Covid-19 and Brexit are amongst the most significant economic events currently faced by the UK, and at the date of this report their effects are subject to unprecedented levels of uncertainty, with the full range of possible outcomes and their impacts unknown. We applied a standardised firm-wide approach in response to these uncertainties when assessing the charities future prospects and performance.

However, no audit should be expected to predict the unknowable factors or all possible future implications for a company associated with these particular events.

CORNWALL MUSIC SERVICE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CORNWALL MUSIC SERVICE TRUST

Conclusions relating to going concern

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

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

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

In our evaluation of the directors’ conclusion, we considered the risks associated with the charities business, including effects arising from macro-economic uncertainties such as Covid-19 and Brexit. We analysed how those risks might affect the charities financial resources or ability to continue operations over the period of at least twelve months from the date when the financial statements are authorised for issue. In accordance with the above, we have nothing to report in these respects.

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the charity will continue in operation.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and , except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent 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 misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

CORNWALL MUSIC SERVICE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CORNWALL MUSIC SERVICE TRUST

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the d irectors ' r eport included within the Trustees r eport.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the s tatement of Trustees r esponsibilities, the Trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .

CORNWALL MUSIC SERVICE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CORNWALL MUSIC SERVICE TRUST

As part of our audit work, we obtained an understanding of the legal and regulatory frameworks applicable to the charity and the sector in which they operate. We determined that the laws and regulations most significant to the charity, as well as the laws and regulations that have a direct impact on the preparation of the financial statements are: the Companies Act 2006, safeguarding regulations, data protection regulations, health and safety regulations and employment legislation.

The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

We also communicate relevant identified laws and regulations and potential fraud risk to all engagement team members and remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

CORNWALL MUSIC SERVICE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CORNWALL MUSIC SERVICE TRUST

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Williams (Senior Statutory Auditor) for and on behalf of RRL LLP

11 February 2022

Chartered Accountants Statutory Auditor

Peat House Newham Road TRURO Cornwall TR1 2DP

CORNWALL MUSIC SERVICE TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Donations and legacies
3
809,264
353,783
Charitable activities
5
903,929
-
Investments
4
135
-
Other income
6
43,276
352
Total income
1,756,604
354,135
Expenditure on:
Charitable activities
7
1,274,659
397,681
Net income/(expenditure)
for the year/
Net movement in funds
481,945
(43,546)
Fund balances at 1
September 2020
352,005
63,162
Fund balances at 31
August 2021
833,950
19,616		 TotalUnrestricted
funds
2021
2020
£
£
1,163,047
468,625
903,929
942,927
135
704
43,628
43,217
2,110,739
1,455,473
1,672,340
1,491,623
438,399
(36,150)
415,167
388,155
853,566
352,005		 Restricted
funds
2020
£
16,430
-
-
-
16,430
2,218
14,212
48,950
63,162		 Total
2020
£
485,055
942,927
704
43,217
1,471,903
1,493,841
(21,938)
437,105
415,167
Donations and legacies
3
Charitable activities
5
Investments
4
Other income
6
Total income
Expenditure on:
Charitable activities
7
Net income/(expenditure)
for the year/
Net movement in funds
Fund balances at 1
September 2020
Fund balances at 31
August 2021

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

CORNWALL MUSIC SERVICE TRUST

BALANCE SHEET

AS AT 31 AUGUST 2021

Notes
Fixed assets
Intangible assets
13
Tangible assets
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
18
Net assets
Income funds
Restricted funds
19
Unrestricted funds
Designated funds
20
General unrestricted funds		 2021
£
£
-
4,496
4,496
254,517
863,221
1,117,738
(104,168)
1,013,570
1,018,066
(164,500)
853,566
19,616
306,160
527,790
833,950
853,566		 2020
£
£
714
4,191
4,905
173,595
487,533
661,128
(47,866)
613,262
618,167
(203,000)
415,167
63,162
306,160
45,845
352,005
415,167

The financial statements were approved by the Trustees on 10 February 2022

D Fryer Trustee

Company Registration No. 09268124

CORNWALL MUSIC SERVICE TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021

Notes
Cash flows from operating activities
Cash generated from operations
26
Investing activities
Purchase of tangible fixed assets
Interest received
Net cash (used in)/generated from
investing activities
Financing activities
(Repayment)/receipt of bank loans
Net cash (used in)/generated from
financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
(943)
135
(3,500)		 £
379,996
(808)
(3,500)
375,688
487,533
863,221		 2020
£
(342)
704
210,000		 £
17,239
362
210,000
227,601
259,932
487,533

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

Company information

The charitable company is incorporated in England and Wales and is limited by guarantee and does not have a share capital. In the event of the Company being wound up each member is liable to contribute a sum not exceeding £1. There were 12 members at 31 August 20 21 (2020: 10) .

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

1.5 Resources expended

Resources expended are accounted for on an accruals basis, inclusive of irrecoverable VAT. Costs of generating funds are those costs incurred in attracting voluntary income. Charitable activities comprise expenditure associated with teaching and school activities and include both direct and support costs.

Governance costs are those incurred in the governance of the charity and its assets and are associated with constitutional and statutory requirements.

1.6 Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Website 33% straight line

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Instruments 25% straight line Computer equipment 33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ (expenditure for the year , unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

1.11 Taxation

As the company is a registered charity, it is exempt from corporation tax.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

3 Donations and legacies

Unrestricted
Restricted
funds
funds
£
£
Donations and gifts
34,398
-
Grants receivable
774,866
353,783
809,264
353,783
For the year ended 31 August 2020
468,625
16,430
Donations and gifts
Cornwall Music Therapy Trust
22,322
-
Other
12,076
-
34,398
-
Grants receivable for core activities
Arts Council National Lottery Fund - Dalla Project
-
3,000
Duchy Health Charity - E Learning
-
-
Covid-19 Response
-
-
Government grants
774,866
-
Cornwall Council grant
-
-
Cornwall Community Foundation - E Learning
-
-
Cornwall Council Music Therapy
-
300
BBC Children In Need Music Therapy
-
9,500
Radford Trust Covid grant
-
5,000
Arts Council Cultural Recovery Fund
-
335,983
774,866
353,783		 Total
2021
£
34,398
1,128,649
1,163,047
22,322
12,076
34,398
3,000
-
-
774,866
-
-
300
9,500
5,000
335,983
1,128,649		 Total
2020
£
23,292
461,763
485,055
485,055
-
23,292
23,292
13,430
5,000
4,955
425,378
10,000
3,000
-
-
-
-
461,763

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

3 Donations and legacies

(Continued)

HMRC - a grant has been received for £774,866 (2020: £425,378) to help with the furloughed staff whilst in a nationwide lockdown due to COVID-19.

Cornwall Council - a grant has been received for £Nil (2020: £10,000). The local restrictions support grant has been issued to help businesses during the national lockdown and COVID-19 outbreak.

Duchy Health Charity - a grant has been received for £Nil (2020: £5,000) to be spent in relation with the E learning website.

Cornwall Community Fund - a grant has been received for £Nil (2020: £3,000) to be spent in relation with the E learning website.

COVID-19 Response - a grant has been received for £Nil (2020: £4,955) to be spent in relation to music therapy provided by the National Lottery.

Arts Council Culture Recovery Fund - grants of £335,983 (2020: £Nil) to support core costs, including salary top up and reflating reserves, due to restrictions encountered because of COVID-19.

Cornwall Council Music Therapy - £300 (2020: £Nil) has been granted to support the requisition of instruments required for Music Therapy delivery.

BBC Children In Need Music Therapy - £9,500 (2020: £8,950) has been granted from Children In Need to support Music Therapy provision.

Radford Trust Covid Grant - £5,000 was granted to support children and young people who were financially disadvantaged due to COVID-19 and otherwise would not be able to continue receiving music education.

4 Investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Interest receivable 135 704
5 Charitable activities
2021 2020
£ £
Music tuition fees 903,929 942,927

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

6 Other income

Unrestricted
Restricted
Fund
Fund
£
£
Other income
43,276
352
Charitable activities
Unrestricted Restricted
Fund
Fund
£
£
Staff costs
1,204,248
337,249
Depreciation and impairment
638
-
Other teaching costs
2,141
-
Premises costs
6,837
-
Charitable publicity
2,850
-
Finance costs
1,472
-
Bad debts written off
-
-
Amortisation
714
-
Studio rental
7,679
-
1,226,579
337,249
Share of support costs (see note 11)
40,041
60,432
Share of governance costs (see note 11)
8,039
-
1,274,659
397,681
For the year ended 31 August 2020
Unrestricted funds
-
-
Restricted funds
-
-
-
-		 2021
£
43,628
2021
£
1,541,497
638
2,141
6,837
2,850
1,472
-
714
7,679
1,563,828
100,473
8,039
1,672,340		 2020
£
43,217
2020
£
1,399,233
655
14,029
9,116
936
2,180
(10,000)
131
-
1,416,280
70,938
6,623
1,493,841
1,491,623
2,218
1,493,841

7 Charitable activities

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

10 Employees

The average monthly number of employees during the year was:

2021
Number
Teaching
117
Administration
3
Total
120
Employment costs
2021
£
Wages and salaries
1,403,279
Social security costs
90,685
Other pension costs
47,533
1,541,497
The number of employees whose annual remuneration was more than
£60,000 is as follows:
2021
Number
£60,000 to £70,000
1
Support costs
Support
costs
Governance
costs
2021
Support
costs
Governance
costs
£
£
£
£
£
Support costs
97,629
-
97,629
68,598
-
Non-audit remuneration
- taxation services
2,844
-
2,844
2,340
-
Audit fees
-
3,000
3,000
-
2,950
Legal and professional
-
5,039
5,039
-
3,673
100,473
8,039
108,512
70,938
6,623
Analysed between
Charitable activities
100,473
8,039
108,512
70,938
6,623		 2020
Number
114
3
117
2020
£
1,278,261
76,722
44,250
1,399,233
2020
Number
-
2020
£
68,598
2,340
2,950
3,673
77,561
77,561

11 Support costs

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

12 Auditor's remuneration

The analysis of auditor's remuneration is as follows:

Audit of the annual accounts
Non-audit services
All other non-audit services
13
Intangible fixed assets
Cost
At 1 September 2020 and 31 August 2021
Amortisation and impairment
At 1 September 2020
Amortisation charged for the year
At 31 August 2021
Carrying amount
At 31 August 2021
At 31 August 2020		 2021
2020
£
£
3,000
2,950
5,413
6,478
Website
£
3,360
2,646
714
3,360
-
714

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

14
Tangible fixed assets
Instruments
Computer
equipment
£
£
Cost
At 1 September 2020
4,361
2,739
Additions
943
-
At 31 August 2021
5,304
2,739
Depreciation and impairment
At 1 September 2020
559
2,350
Depreciation charged in the year
466
172
At 31 August 2021
1,025
2,522
Carrying amount
At 31 August 2021
4,279
217
At 31 August 2020
3,802
389
15
Debtors
2021
Amounts falling due within one year:
£
Trade debtors
249,720
Other debtors
4,797
254,517
16
Loans and overdrafts
2021
£
Bank loans
206,500
Payable within one year
42,000
Payable after one year
164,500
Amounts included above which fall due after five years:
Payable by instalments
161,313
Payable other than by instalments
-
161,313		 Total
£
7,100
943
8,043
2,909
638
3,547
4,496
4,191
2020
£
173,595
-
173,595
2020
£
210,000
7,000
203,000
163,334
39,666
203,000

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

16 Loans and overdrafts

(Continued)

The long-term loan is secured by way of a debenture over fixed and floating assets of the charity.

The loan is repayable by instalments after a 12 month repayment holiday and interest charged at 3.19%.

17 Creditors: amounts falling due within one year

Notes
Bank loans
16
Other taxation and social security
Trade creditors
Other creditors
18
Creditors: amounts falling due after more than one year
Notes
Bank loans
16		 2021
£
42,000
50,402
7,655
4,111
104,168
2021
£
164,500		 2020
£
7,000
27,248
9,588
4,030
47,866
2020
£
203,000

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

19 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Balance at
1 September resources expended 1 September resources expended 31 August
2019 2020 2021
£ £ £ £ £ £ £
Cornwall
Community
Fund - E
Learning - 3,000 - 3,000 352 (3,352) -
Arts Council -
Early Years -
Dalla Project - 13,430 (2,218) 11,212 3,000 (14,212) -
Early Years
Music
Education 30,000 - - 30,000 - - 30,000
Children in
Need 8,950 - - 8,950 9,500 (2,150) 16,300
MusicNet
East 10,000 - - 10,000 - - 10,000
Cornwall
Council -
Music
Therapy - - - - 300 - 300
Radford Trust - - - - 5,000 (4,492) 508
Arts Council
Culture
Recovery
Fund - - - - 335,983 (373,475) (37,492)
48,950 16,430 (2,218) 63,162 354,135 (397,681) 19,616

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

19 Restricted funds

(Continued)

Details of the purpose of the restricted funds is as follows:

Early Years Music Education: Donation from James Sargent (Trustee) for Early Years Music Education Service .

Children in Need: Funding for the provision of Music Therapy primarily for children in hospital.

MusicNet East: Funding to provide band based music project at Falmouth School for children in challenging circumstances.

Arts Council Early Years - Dalla Project: Funding from National lottery fund for Early Years Music.

Cornwall Community Foundation: Funding for E-Learning website.

Cornwall Council Music Therapy: Funding to support the requisition of instruments required for Music Therapy delivery.

Radford Trust Covid grant: Funding to support children and young people who were financially disadvantaged due to COVID-19 and otherwise would not be able to continue receiving music education.

Arts Council Culture Recovery Fund: Funding to support core costs, including salary top up and reflating reserves due to restrictions encountered because of COVID-19.

Further funding is due to be received from the Arts Council Culture Recovery Fund after the year end to match expenditure made in the current year and which will reduce the overdrawn fund to a breakeven position.

20 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement Movement
in funds in funds
Balance at Incoming Balance at Incoming Balance at
1 September resources 1 September resources 31 August
2019 2020 2021
£
£		 £
£		 £
Deficit reserve 300,000
-		 300,000
-		 300,000
Mark Wilkin Memorial Bursary 6,160
-		 6,160
-		 6,160
306,160
-		 306,160
-		 306,160

The deficit reserve has been earmarked by the trustees to cover staff salaries for the period of 2 months should there be a temporary drop in income.

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

21 Retirement benefit schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to the statement of financial activities in respect of defined contribution schemes was £47,533 (2020: £44,250).

Included in creditors at the year end was £1,780 (2020: £Nil) in respect of the defined contribution pension scheme.

22 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
August 2021 are
represented by:
Intangible fixed assets
-
-
Tangible assets
4,496
-
Current assets/
(liabilities)
993,954
19,616
Long term liabilities
(164,500)
-
833,950
19,616		 TotalUnrestricted
funds
2021
2020
£
£
-
714
4,496
4,191
1,013,570
550,100
(164,500)
(203,000)
853,566
352,005		 Restricted
funds
2020
£
-
-
63,162
-
63,162		 Total
2020
£
714
4,191
613,262
(203,000)
415,167

23 Operating lease commitments

Payments in connection with operating leases during the year totalled £6,837 (2020: £9,116). At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2021 2020
£ £
Within one year 6,837 13,674

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

24 Related party transactions

No Trustees was reimbursed for expenses in the year (2020: £Nil).

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2021 2020
£ £
Aggregate compensation 88,825 93,557
25 Analysis of changes in net funds
At 1 September Cash flows At 31 August
2020 2021
£ £ £
Cash at bank and in hand 487,533 375,688 863,221
Loans falling due within one year (7,000) (35,000) (42,000)
Loans falling due after more than one year (203,000) 38,500 (164,500)
277,533 379,188 656,721
26 Cash generated from operations 2021 2020
£ £
Surplus/(deficit) for the year 438,399 (21,938)
Adjustments for:
Investment income recognised in profit or loss (135) (704)
Amortisation and impairment of intangible assets 714 131
Depreciation and impairment of tangible fixed assets 638 655
Movements in working capital:
(Increase)/decrease in debtors (80,922) 175,067
Increase/(decrease) in creditors 21,302 (135,972)
Cash generated from operations 379,996 17,239