**REGISTERED COMPANY NUMBER: 09268124 (England and Wales) REGISTERED CHARITY NUMBER: 1159622**
## **REPORT OF THE TRUSTEES AND**
## **FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2023**
## **FOR**
**CORNWALL MUSIC SERVICE TRUST (A COMPANY LIMITED BY GUARANTEE)**
TC Group The Old Carriage Works Moresk Road TRURO Cornwall TR1 1DG
**CORNWALL MUSIC SERVICE TRUST**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
||**Page**|
|---|---|
|**Reference and Administrative Details**|1|
|**Report of the Trustees**|2 to 10|
|**Report of the Independent Auditors**|11 to 13|
|**Statement of Financial Activities**|14|
|**Balance Sheet**|15|
|**Cash Flow Statement**|16|
|**Notes to the Cash Flow Statement**|17|
|**Notes to the Financial Statements**|18 to 30|
|**Detailed Statement of Financial Activities**|31 to 32|
**CORNWALL MUSIC SERVICE TRUST**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
|**TRUSTEES**|D W Fryer (resigned 1/1/2023)|
|---|---|
||J M Bailey|
||R Bates (resigned 1/9/2023)|
||J M R Brant|
||A S Gordon-Brown (resigned 1/9/2023)|
||A Johnson|
||P Kneebone|
||A T L Retallack|
||J A Scarborough|
||E Sibley|
||D I Solly|
||R M J Thomas|
|**REGISTERED OFFICE**|Truro School|
||Trennick Lane|
||TRURO|
||Cornwall|
||TR1 1TH|
|**REGISTERED COMPANY**|09268124 (England and Wales)|
|**NUMBER**||
|**REGISTERED CHARITY**|1159622|
|**NUMBER**||
|**INDEPENDENT AUDITORS**|TC Group|
||The Old Carriage Works|
||Moresk Road|
||TRURO|
||Cornwall|
||TR1 1DG|
|**SOLICITORS**|Foot Anstey LLP|
||High Water House|
||Malpas Road|
||TRURO|
||Cornwall|
||TR1 1QH|
|**BANKERS**|Barclays Bank Plc|
||1 Churchill Place|
||LONDON|
||E14 5HP|
Page 1
**CORNWALL MUSIC SERVICE TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023**
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2023. The trustees have adopted the provisions of 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 2019).
## **OBJECTIVES AND ACTIVITIES Charitable Objects (for the Public Benefit)**
- to advance education within the framework of the arts for the benefit of the public of Cornwall and elsewhere
- to advance the arts and culture for the benefit of the public, particularly but not exclusively by promoting and facilitating access to and performance of music and other art forms
- to provide for the recreation of children, young people and adults for the benefit of the public by providing facilities and services to them in the interests of social welfare with the object of improving their conditions of life
- to promote and provide for the public benefit music therapy for the relief of physical and mental illness and disability, the alleviation of developmental, emotional, social and behavioural difficulties and the protection and promotion of good health in children and adults, in particular, but not exclusively, in Cornwall and the Isles of Scilly.
## **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.
Page 2
**CORNWALL MUSIC SERVICE TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023**
## **OBJECTIVES AND ACTIVITIES**
Our broad objectives can be grouped as follows:
## **Learner Experience**
- Identify and nurture talent of all abilities across all levels and stages, from learners that are just embarking on their first musical experiences to those who are exceptionally gifted and talented and demonstrate high levels of excellence
- Be inclusive; to reach all learners including those that are socially, educationally, geographically, physically or financially challenged
- Ensure that our curricula are ethnically and culturally diverse and inclusive
- Develop a range of formal and non-formal teaching methods that engage and encourage all learners
- Provide exciting and engaging performance opportunities
- Support and develop an Ensemble Network for instrumental and vocal performers (including adult learners)
- Provide and signpost opportunities for progression
- Develop a formal annual reporting system to facilitate feedback to students and their parents/carers
- Develop a system of bursaries to support the Learner Experience
## **Partnership with Educational Establishments**
- Support educational establishments in recognising the value of music
- Exercise our influence in the provision of suitable environments for musical activities
- Engage, where possible with the latest research and development in music education
- Promote partnerships with a wide range of organisations including schools, colleges, universities, conservatoires and wider educational establishments
- Encourage dialogue with the informal and independent teaching sector, especially with the aim of promoting good teaching practice and teacher development
## **Service Development**
- Develop an Early Years Music Strategy
- Develop a Vocal Strategy
- Develop a sustainable First Access programme
- Maintain a strong working relationship with AsOne Hub, whilst being prepared for changes in national policy
- Make bids and applications for grant funding to other organisations with a view to increasing or enhancing our services
- Explore working with other performing art forms
- Maintain and develop Music Therapy
## **Organisational Framework**
- Maintain a financially sustainable organisation
- Provide a safeguarded teaching environment that protects learners and teachers
- Develop a Quality Assurance Strategy
- Develop a robust system for staff appraisal and development
- Develop our Health and Wellbeing Strategy
- Identify and provide opportunities for developing the skills of Trustees and the effectiveness of the Board of Trustees
- Make best use of appointed advisers and friends scheme
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Page 3
**CORNWALL MUSIC SERVICE TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023**
## **OBJECTIVES AND ACTIVITIES**
## **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 AsOne Hub, 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 Personal Independence Payment and children with an Education, Health and Care Plan. In addition Cornwall Music Service Trust offers, on an application and 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.
Page 4
**CORNWALL MUSIC SERVICE TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023**
## **ACHIEVEMENT AND PERFORMANCE Fundraising activities**
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.
The period in question has presented two major challenges for Cornwall Music Service Trust (CMST). The introduction of the upgraded Paritor (client management) system which, in reality, was a complete redesign of the previous software, presented a significant increased workload for office and frontline teaching staff. In addition it also created barriers for clients who found it difficult to navigate the software to be able to sign up new students, access the portal and generally engage with this important interface between CMST and parents/guardians. The process of implementing this software upgrade required office staff to start the process way ahead of the period in question to ensure a smooth transition but in reality the software was never fit for purpose. Therefore a fairly radical decision was made 6 months into the accounting period to withdraw Paritor and implement a different client management system. The Head of Service had already researched alternative models and thankfully due to this diligence had a suitable alternative in SpeedAdmin. SpeedAdmin has been easier to implement, more efficient for the office team and far more user intuitive for customers and clients. It also has more extensive reporting functionality that will allow for easier data analysis and is constantly evolving and improving. The Trustees would like to acknowledge and thank the hard work of all staff and in particular Ian Bowden and Ryun Retallack for their patience and perseverance in this area.
The second area of challenge has been the change in administration for funded areas of CMST's work by AsOne Hub in April 2022. Alluded to in last year's report but important to document again is that Cornwall Council relinquished their role as Hub Lead Organisation (HLO) for Cornwall which led to a tendering process. This was only an interim model as a wider public tendering process was on the horizon. During this interim period the core team for the HLO resigned which resulted in a period of substantial instability. Commissioned work for CMST took longer than expected to be confirmed and this resulted in the delay in some work commencing. All of this caused undue pressure on CMST staff in certain areas of stress that impacted the health and well being of staff. The Head of Service provided much assistance to the interim programme director of the HLO and if it was not for this assistance matters could have become much worse. Unfortunately this situation is still ever present and is having a negative strategic, financial and delivery impact for both staff and children and young people of Cornwall.
Taking these matters into consideration it is actually quite encouraging to see that the financial outturn for CMST, albeit a deficit for the period, is only a small one. The Trustees have been supportive during this challenging period but still with a keen eye on good governance and strategic oversight. Due to CMST's financial resilience the Trustees have been able to support staff through a range of mechanisms to counteract rising inflation and a cost of living crisis. The Trustees are acutely aware that in due course a stronger relationship with the new HLO for Cornwall will have to be established so that CMST, with all of its information, data and awareness of the sector can inform how much welcomed public funding should be spent. It has been noted that since the pandemic traditional western instruments have been undersupported and consequently this is filtering through to the ensemble network. It may also require an initiative by CMST to draw on reserves to financially support initiatives in the six defined areas of delivery, from Penwith to East Cornwall.
Page 5
**CORNWALL MUSIC SERVICE TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023**
## **ACHIEVEMENT AND PERFORMANCE**
To further highlight positives within the period it has been really rewarding to see ensembles progress to the National Music for Youth Event at Symphony Hall in Birmingham. This is a testament to the commitment, hard work and dedication of both CMST staff and students. These events are difficult to support as it requires a huge amount of resource and finance to transport children and young people to these events. However, due to CMST's constitution, track record and expertise funding was leveraged with support from Music for Youth and Cornwall Community Foundation which enabled 50 children and young people to have a long lasting experience through performance at an iconic venue. This is only one example of many opportunities that CMST has been able to provide so that it enhances the life experience of the young population of Cornwall.
Finally a recent mapping exercise through the new software system has been able to demonstrate the breadth and depth of CMST's delivery across Cornwall and this data, which is open source, can be accessed via the link below: https://www.google.com/maps/d/edit?mid=1LQB-02HbtZL-s0zocSzUR4jouO1vFpw&usp=sharing
## **FINANCIAL REVIEW**
## **Financial position**
The charitable 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 outgoing resources for the year were £1,905 (2022: outgoing resources £217,978).
## **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 2023 the charitable company had free reserves of £301,764 (2022: £278,819).
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 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 charitable company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Page 6
**CORNWALL MUSIC SERVICE TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023**
## **FUTURE PLANS**
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.
- Expand current delivery to outreach to further educational establishments and other organisations
- Create a strong cohesion with Truro School thus providing a Music Centre for Cornwall
- Explore & develop Music Technology education and digital music provision
- Create an internal assessment programme for students for all musical disciplines
- Provide a highly professional service to schools, Further Education and Higher Education and the wider community
- Work closely with national and international musicians, educators, conductors and clinicians to provide the highest quality masterclasses and holiday music schools
- Explore funding for bespoke programmes of work
- Create an e-learning environment to support the initial stages of music education
- Develop Early Years Music Provision and Training for Early Years practitioners
- Nationwide consultancy on Music Service Trust Formation
- Online delivery via Skype and Online Orchestra software in collaboration with Falmouth University to provide delivery to the hardest to reach areas and connect musicians that are isolated
- Bespoke workshops and projects for schools and the wider community.
- Weekend and evening workshops, etc - ie - Saturday morning theory classes
- Summer school and holiday courses
-
- Digital technology projects
- Performance opportunities at all levels; large scale and smaller settings - CMST cluster performances - bring groups of schools together for a massed performance.
- CMST Schools Prom - An annual performance to all primary schools using CMST ensembles giving an educational experience and demonstration encouraging new young people to learn
- Advice on purchase of musical instruments and resources in school
-
- One off supply days - music cover
- Write new performance and teaching material - this could be for individual instruments or for small ensembles. It could then be sold to pupils both in Cornwall and elsewhere as CMST Publications.
Page 7
**CORNWALL MUSIC SERVICE TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023**
## **FUTURE PLANS**
- Twilight training sessions for teachers on a whole variety of musical techniques, skills and tasks. This might include setting up an ensemble, conducting skills, composition starting points, working towards a performance
- CPD presentations to Primary and Secondary Initial Teacher Training bodies - annual
- Secondary Head of Music Departments meetings and conferences
- Make the Cornwall Youth Jazz Festival an annual event
- Make the Cornwall Horn Festival an annual event
- Develop and expand Music Therapy provision
- Longer term; to look for funding to establish 'Music Centres' in the West and North & East of Cornwall along with collaborating with Truro School to find a central Music Centre
- After establishment of Music Centres appoint Area Managers to coordinate delivery in these areas
- Review management structure of CMST
- Review business plan and 5 year financial forecast in line with the above future plans as an ongoing activity
- Create a strong partnership with the City of London Symphonia including support in delivering their educational outreach programme
- Work closely and advise Trinity College of London or another national Music College on various aspects of delivery including but not exclusively the research element into the examination process and an online alternative
-
Advise nationally on Early Years Music Education
## **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 charitable 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 event of the company being wound up members are required to contribute and amount not exceeding £1.
## **Charity constitution**
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 charitable company. 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 an 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.
## **Recruitment and appointment of new 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.
There were no new trustees appointed during the year.
Page 8
**CORNWALL MUSIC SERVICE TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT 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 9 trustees from a variety of professional backgrounds relevant to the work of Cornwall Music Service Trust who form the Board of Trustees.
National benchmarking is used in setting pay for key management personnel but always with the charitable company's affordability in mind.
## **Related parties**
CMST will partner with a number of local organisations. These include the following:
AsOne 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
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The trustees (who are also the directors of Cornwall Music Service Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
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 those financial statements, the trustees are required to
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company's auditors are unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Page 9
##
##
##
**REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CORNWALL MUSIC SERVICE TRUST**
## **Qualified opinion**
We have audited the financial statements of Cornwall Music Service Trust (the 'charitable company') for the year ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 August 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for qualified opinion**
The charitable company changed provider for the software system that was used for managing tuition income shortly after the year end, and access to the previous software system was not maintained for the duration of our audit. Accordingly we were unable to view bookings and invoices on the software system that would have enabled us to carry out substantive testing at the individual transaction level on a material element of the charitable company's income, amounting to £1,389,604. As a result of this we were unable to obtain sufficient audit evidence in respect of this income, and we were unable to determine whether any adjustment to this amount was necessary.
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 charitable company 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 qualified opinion.
## **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 charitable company'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.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
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.
In connection with our audit of the financial statements, 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 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.
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning tuition income amounting to £1,389,604 as we were unable to carry out substantive testing at the individual transaction level in this population. We have concluded that where the other information refers to tuition income, it may be materially misstated for the same reason.
Page 11
**REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CORNWALL MUSIC SERVICE TRUST**
## **Opinions on other matters prescribed by the Companies Act 2006**
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:
- the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Trustees has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
Arising solely from the limitation on the scope of our work relating to tuition income, referred to above:
- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
- we were unable to determine whether adequate accounting records have been kept.
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:
- returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes 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 charitable company'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.
Page 12
##
##
**CORNWALL MUSIC SERVICE TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2023**
|Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
3
**Charitable activities**
6
Other Education
Other trading activities
4
Investment income
5
Other income
**Total**
**EXPENDITURE ON**
Raising funds
7
**Charitable activities**
8
Other Education
**Total**
**NET INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
funds
£
35,970
1,548,294
8,481
3,391
99,547
1,695,683
8,627
1,655,617
1,664,244
31,439
587,030
618,469|Restricted
funds
£
39,383
-
-
-
-
39,383
-
72,726
72,726
(33,343)
48,558
15,215|2023
Total
funds
£
75,353
1,548,294
8,481
3,391
99,547
1,735,066
8,627
1,728,343
1,736,970
(1,904)
635,588
633,684|2022
Total
funds
£
135,792
1,379,808
-
291
36,916
1,552,807
-
1,770,785
1,770,785
(217,978)
853,566
635,588|
|---|---|---|---|---|
The notes form part of these financial statements
Page 14
##
|Unrestricted
funds
Notes
£
FIXEDASSETS
Intangible assets
14
3,667
TangIble assets
15
10,644
14,311
CURRENTASSETS
Stocks
16
30
Debtors
17
112,333
Cashatbank
538,718
651,081
CREDITORS
Amounts falling due within oneyear
18
(46,923)
NETCURRENTASSETS
604,158
TOTALASSETSLESSCURRENT
LIABILITIES
618,469
NETASSETS
618,469
FUNDS
21
Unrestricted funds:
General fund
Deficit Reserve - Designated
MarkWilkin Memorial BurSary - Designated
Restricted funds
TOTALFUNDS||Restricted
funds
£
15,215
15,215
15.215
15,215
15,215||2023
Total
funds
£
3,667
10,644
14,311
30
112,333
553,933
666,296
(46,923)
619,373
633,684
633,684
316,075
300,000
2,394
618,469
15.215
633,684|2022
Total
funds
£
3,770
3,770
145,329
706,681
852,010
(220,192)
631,818
635,588
635,588
282,589
300,000
4.441
587,030
48.558
635,588|
|---|---|---|---|---|---|
|||||||
|||||||
|||||||
## **CORNWALL MUSIC SERVICE TRUST**
|**CASH FLOW STATEMENT**
**FOR THE YEAR ENDED 31 AUGUST 2023**
2023
Notes
£
**Cash flows from operating activities**
Cash generated from operations
1
84,844
Tax paid
(59,710)
Net cash provided by/(used in) operating activities
25,134
**Cash flows from investing activities**
Purchase of intangible fixed assets
(5,500)
Purchase of tangible fixed assets
(11,273)
Interest received
3,391
Net cash used in investing activities
(13,382)
**Cash flows from financing activities**
Loan repayments in year
(164,500)
Net cash used in financing activities
(164,500)
**Change in cash and cash equivalents in**
**the reporting period**
(152,748)
**Cash and cash equivalents at the**
**beginning of the reporting period**
706,681
**Cash and cash equivalents at the end of**
**the reporting period**
553,933|2022
£
(113,481)
-
(113,481)
-
(1,350)
291
(1,059)
(42,000)
(42,000)
(156,540)
863,221
706,681|
|---|---|
The notes form part of these financial statements
Page 16
**CORNWALL MUSIC SERVICE TRUST**
## **NOTES TO THE CASH FLOW STATEMENT**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
## **1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**Net expenditure for the reporting period (as per the Statement of**
**Financial Activities)**
**Adjustments for:**
Depreciation charges
Interest received
Increase in stocks
Decrease in debtors
Decrease in creditors
**Net cash provided by/(used in) operations**|2023
£
(1,904)
6,232
(3,391)
(30)
92,706
(8,769)
84,844|2022
£
(217,978)
2,076
(291)
-
109,188
(6,476)
(113,481)|
|---|---|---|
**2. ANALYSIS OF CHANGES IN NET FUNDS**
||At 1/9/22|Cash flow|At 31/8/23|
|---|---|---|---|
||£|£|£|
|**Net cash**||||
|Cash at bank|706,681|(152,748)|553,933|
||706,681|(152,748)|553,933|
|**Debt**||||
|Debts falling due within 1 year|(164,500)|164,500|-|
||(164,500)|164,500|-|
|**Total**|542,181|11,752|553,933|
The notes form part of these financial statements
Page 17
**CORNWALL MUSIC SERVICE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **1. 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 11 members at 31 August 2023 (2022: 12).
## **2. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts 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.
## **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.
## **Income**
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.
## **Expenditure**
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.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Instruments - 25% on cost Computer equipment - 33% on cost
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.
continued...
Page 18
**CORNWALL MUSIC SERVICE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023**
## **2. ACCOUNTING POLICIES - continued**
## **Tangible fixed assets**
## **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.
## **Stocks**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Designated funds has been earmarked by the trustees to cover staff salaries for the period of 2 months should there be a temporary drop in income.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Pension costs and other post-retirement benefits**
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
## **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.
continued...
Page 19
**CORNWALL MUSIC SERVICE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
## **2. ACCOUNTING POLICIES - continued**
## **Financial instruments**
## **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.
## **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.
## **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.
## **3. DONATIONS AND LEGACIES**
|Donations and gifts
Gift aid
Grants|2023
£
39,120
7,949
28,284
75,353|2022
£
23,872
3,907
108,013
135,792|
|---|---|---|
continued...
Page 20
**CORNWALL MUSIC SERVICE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023**
## **3. DONATIONS AND LEGACIES - continued**
Grants received, included in the above, are as follows:
|Arts Council National Lottery Fund - Dalla Project
Creative Kernow - Cultivator Creative Investment Grant
Early Years Music Education
Government Grants
Arts Council England - Queen's Platinum Jubilee Weekend Fund
BBC Children in Need Music Therapy
Radford Trust
Arts Council Cultural Recovery Fund
BBC Children in Need Music Therapy Development Day
Cornwall Community Fund - Music Therapy|2023
£
-
-
17,784
-
-
500
-
-
-
10,000
28,284|2022
£
1,492
2,953
4,704
43,622
5,000
9,500
3,000
37,492
250
-|
|---|---|---|
|||108,013|
**Arts Council National Lottery Fund - Dalla Project** - a grant has been received for £Nil (2022: £1,492) to support Early Years Music Education.
**Creative Kernow - Cultivator Creative Investment Grant** - a grant has been received for £Nil (2022: £2,953) to support the purchase of a studio recording kit.
**Early Years Music Education** - a grant has been received for £17,784 (2022: £4,704 to support Early Years Music Education.
**HMRC** - a grant has been received for £Nil (2022: £43,622) to help with the furloughed staff whilst in a nationwide lockdown due to COVID-19.
**Arts Council England - Queen's Platinum Jubilee Weekend** - a grant has been received for £Nil (2022:£5,000) to support the activities as part of Her Majesty The Queen's Platinum Jubilee celebrations.
**BBC Children In Need Music Therapy Development Day** - a grant has been received for £Nil (2022: £250) to support the provision of a Music Therapy Development Day.
**BBC Children In Need Music Therapy** - a grant has been received for £500 (2022: £9,500) to support Music Therapy provision.
**Radford Trust** - a grant has been received for £Nil (2022: £3,000) 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 Cultural Recovery Fund** - a grant has been received for £Nil (2022: £37,492) to support core costs, including salary top up and reflating reserves, due to restrictions encountered because of COVID-19.
**Cornwall Community Fund - Music Therapy** - a grant has been received for £10,000 (2022: £Nil) to support Music Therapy delivery.
continued...
Page 21
**CORNWALL MUSIC SERVICE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
|**4.**
**OTHER TRADING ACTIVITIES**
T-shirt income
Goods and services recharged
**5.**
**INVESTMENT INCOME**
Deposit account interest
**6.**
**INCOME FROM CHARITABLE ACTIVITIES**
Music tuition fees
Music therapy fees
**7.**
**RAISING FUNDS**
**Other trading activities**
Purchases
Closing stock
**8.**
**CHARITABLE ACTIVITIES COSTS**
Other Education|Direct
Costs
£
1,627,848|2023
£
440
8,041
8,481
2023
£
3,391
2023
£
1,389,604
158,690
1,548,294
2023
£
8,657
(30)
8,627
Support
costs (see
note 9)
£
100,495|2022
£
-
-
-
2022
£
291
2022
£
1,379,808
-
1,379,808
2022
£
-
-
-
Totals
£
1,728,343|
|---|---|---|---|
continued...
Page 22
**CORNWALL MUSIC SERVICE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
## **9. SUPPORT COSTS**
|**SUPPORT COSTS**||||
|---|---|---|---|
|||Governance||
||Other|costs|Totals|
||£|£|£|
|Other Education|84,652|15,843|100,495|
## **10. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
||2023|2022|
|---|---|---|
||£|£|
|Auditors' remuneration|5,340|3,300|
|Depreciation - owned assets|4,399|2,076|
|Website amortisation|1,833|-|
## **11. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 August 2023 nor for the year ended 31 August 2022.
## **12. STAFF COSTS**
|**STAFF COSTS**|||
|---|---|---|
|Wages and salaries
Social security costs
Other pension costs|2023
£
1,409,734
87,740
44,291
1,541,765|2022
£
1,376,222
86,494
45,827|
|||1,508,543|
The average monthly number of employees during the year was as follows:
|Teaching
Administration|2023
110
3
113|2022
110
3|
|---|---|---|
|||113|
|The number of employees whose employee benefits (excluding employer pension costs) exceeded|The number of employees whose employee benefits (excluding employer pension costs) exceeded|£60,000 was:|
|---|---|---|
||2023|2022|
|£60,001 - £70,000|1|-|
|£70,001 - £80,000|-|1|
||1|1|
continued...
Page 23
**CORNWALL MUSIC SERVICE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023**
|**13.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
funds
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
71,174
**Charitable activities**
Other Education
1,379,808
Investment income
291
Other income
36,916
**Total**
1,488,189
**EXPENDITURE ON**
**Charitable activities**
Other Education
1,735,109
**NET INCOME/(EXPENDITURE)**
(246,920)
**RECONCILIATION OF FUNDS**
Total funds brought forward
833,950
**TOTAL FUNDS CARRIED FORWARD**
587,030
**14.**
**INTANGIBLE FIXED ASSETS**
**COST**
At 1 September 2022
Additions
At 31 August 2023
**AMORTISATION**
At 1 September 2022
Charge for year
At 31 August 2023
**NET BOOK VALUE**
At 31 August 2023
At 31 August 2022|
Restricted
funds
£
64,618
-
-
-
64,618
35,676
28,942
19,616
48,558|Total
funds
£
135,792
1,379,808
291
36,916
1,552,807
1,770,785
(217,978)
853,566
635,588
Website
£
3,360
5,500
8,860
3,360
1,833
5,193
3,667
-|
|---|---|---|
continued...
Page 24
**CORNWALL MUSIC SERVICE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023**
## **15. TANGIBLE FIXED ASSETS**
|Instruments
£
**COST**
At 1 September 2022
6,654
Additions
10,677
At 31 August 2023
17,331
**DEPRECIATION**
At 1 September 2022
3,048
Charge for year
4,125
At 31 August 2023
7,173
**NET BOOK VALUE**
At 31 August 2023
10,158
At 31 August 2022
3,606
**16.**
**STOCKS**
Stocks
**17.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade debtors
Other debtors
Tax
Prepayments
**18.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Bank loans and overdrafts (see note 19)
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses|Computer
equipment
£
2,739
596
3,335
2,575
274
2,849
486
164
2023
£
30
2023
£
47,632
1,228
59,710
3,763
112,333
2023
£
-
5,866
15,653
6,762
18,642
46,923|Totals
£
9,393
11,273
20,666
5,623
4,399
10,022
10,644
3,770
2022
£
-
2022
£
136,766
2,567
-
5,996
145,329
2022
£
164,500
21,517
19,635
6,942
7,598
220,192|
|---|---|---|
Page 25
continued...
**CORNWALL MUSIC SERVICE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023**
## **19. LOANS**
An analysis of the maturity of loans is given below:
||2023||2022|
|---|---|---|---|
||£||£|
|Amounts falling due within one year on demand:||||
|Bank loans||-|164,500|
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 and interest charged at 3.19%. The loan was repaid in full in October 2022.
## **20. LEASING AGREEMENTS**
Minimum lease payments under non-cancellable operating leases fall due as follows:
|Within one year
**21.**
**MOVEMENT IN FUNDS**|2023
£
13,674|2022
£
15,314|
|---|---|---|
||||
|**Unrestricted funds**
General fund
Deficit Reserve - Designated
Mark Wilkin Memorial Bursary -
Designated
**Restricted funds**
Early Years Music Education
Children in Need
MusicNet East
Radford Trust
Cornwall Community Fund - Early Years
Music Therapy for Holly Martin
General Music Therapy Fund
Cornwall Community Fund - for Music
Therapy and Inclusion Project
**TOTAL FUNDS**|At 1/9/22
£
282,589
300,000
4,441
587,030
34,704
2,149
10,000
1,705
-
-
-
-
48,558
635,588|Net
movement
in funds
£
33,486
-
(2,047)
31,439
(27,444)
(2,149)
(10,000)
(881)
(4,590)
886
835
10,000
(33,343)
(1,904)|Transfers
between
funds
£
-
-
-
-
(4,704)
-
-
-
4,704
-
-
-
-
-|At
31/8/23
£
316,075
300,000
2,394|
|---|---|---|---|---|
|||||618,469
2,556
-
-
824
114
886
835
10,000|
|||||15,215|
|||||633,684|
Page 26
continued...
**CORNWALL MUSIC SERVICE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
## **21. MOVEMENT IN FUNDS - continued**
Net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
Mark Wilkin Memorial Bursary -
Designated
**Restricted funds**
Early Years Music Education
Children in Need
MusicNet East
Radford Trust
Cornwall Community Fund - Early Years
Music Therapy for Holly Martin
General Music Therapy Fund
Cornwall Community Fund - for Music
Therapy and Inclusion Project
**TOTAL FUNDS**|Incoming
resources
£
1,695,683
-
1,695,683
17,784
1,350
-
1
-
2,556
7,692
10,000
39,383
1,735,066|Resources
expended
£
(1,662,197)
(2,047)
(1,664,244)
(45,228)
(3,499)
(10,000)
(882)
(4,590)
(1,670)
(6,857)
-
(72,726)
(1,736,970)|Movement
in funds
£
33,486
(2,047)
31,439
(27,444)
(2,149)
(10,000)
(881)
(4,590)
886
835
10,000
(33,343)
(1,904)|
|---|---|---|---|
## **Comparatives for movement in funds**
|**Unrestricted funds**
General fund
Deficit Reserve - Designated
Mark Wilkin Memorial Bursary -
Designated
**Restricted funds**
Early Years Music Education
Children in Need
MusicNet East
Cornwall Council - Music Therapy
Radford Trust
Arts Council - Culture Recovery Fund
**TOTAL FUNDS**|At 1/9/21
£
527,790
300,000
6,160
833,950
30,000
16,300
10,000
300
508
(37,492)
19,616
853,566|Net
movement
in funds
£
(245,201)
-
(1,719)
(246,920)
4,704
(14,151)
-
(300)
1,197
37,492
28,942
(217,978)|At
31/8/22
£
282,589
300,000
4,441
587,030
34,704
2,149
10,000
-
1,705
-
48,558
635,588|
|---|---|---|---|
continued...
Page 27
**CORNWALL MUSIC SERVICE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
## **21. MOVEMENT IN FUNDS - continued**
Comparative net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
Mark Wilkin Memorial Bursary -
Designated
**Restricted funds**
Creative Kernow
Arts Council - Queen's Platinum Jubilee
Arts Council - Early Years - Dalla Project
Early Years Music Education
Children in Need
Cornwall Council - Music Therapy
Radford Trust
Arts Council - Culture Recovery Fund
**TOTAL FUNDS**|Incoming
resources
£
1,488,189
-
1,488,189
2,953
5,000
1,492
4,704
9,750
-
3,227
37,492
64,618
1,552,807|Resources
expended
£
(1,733,390)
(1,719)
(1,735,109)
(2,953)
(5,000)
(1,492)
-
(23,901)
(300)
(2,030)
-
(35,676)
(1,770,785)|Movement
in funds
£
(245,201)
(1,719)
(246,920)
-
-
-
4,704
(14,151)
(300)
1,197
37,492
28,942
(217,978)|
|---|---|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
|**Unrestricted funds**
General fund
Deficit Reserve - Designated
Mark Wilkin Memorial Bursary -
Designated
**Restricted funds**
Early Years Music Education
Children in Need
MusicNet East
Cornwall Council - Music Therapy
Radford Trust
Arts Council - Culture Recovery Fund
Cornwall Community Fund - Early Years
Music Therapy for Holly Martin
General Music Therapy Fund
Cornwall Community Fund - for Music
Therapy and Inclusion Project
**TOTAL FUNDS**|At 1/9/21
£
527,790
300,000
6,160
833,950
30,000
16,300
10,000
300
508
(37,492)
-
-
-
-
19,616
853,566|Net
movement
in funds
£
(211,715)
-
(3,766)
(215,481)
(22,740)
(16,300)
(10,000)
(300)
316
37,492
(4,590)
886
835
10,000
(4,401)
(219,882)|Transfers
between
funds
£
-
-
-
-
(4,704)
-
-
-
-
-
4,704
-
-
-
-
-|At
31/8/23
£
316,075
300,000
2,394
618,469
2,556
-
-
-
824
-
114
886
835
10,000
15,215
633,684|
|---|---|---|---|---|
continued...
Page 28
**CORNWALL MUSIC SERVICE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023**
## **21. MOVEMENT IN FUNDS - continued**
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
Mark Wilkin Memorial Bursary -
Designated
**Restricted funds**
Creative Kernow
Arts Council - Queen's Platinum Jubilee
Arts Council - Early Years - Dalla Project
Early Years Music Education
Children in Need
MusicNet East
Cornwall Council - Music Therapy
Radford Trust
Arts Council - Culture Recovery Fund
Cornwall Community Fund - Early Years
Music Therapy for Holly Martin
General Music Therapy Fund
Cornwall Community Fund - for Music
Therapy and Inclusion Project
**TOTAL FUNDS**|Incoming
resources
£
3,183,872
-
3,183,872
2,953
5,000
1,492
22,488
11,100
-
-
3,228
37,492
-
2,556
7,692
10,000
104,001
3,287,873|Resources
expended
£
(3,395,587)
(3,766)
(3,399,353)
(2,953)
(5,000)
(1,492)
(45,228)
(27,400)
(10,000)
(300)
(2,912)
-
(4,590)
(1,670)
(6,857)
-
(108,402)
(3,507,755)|Movement
in funds
£
(211,715)
(3,766)
(215,481)
-
-
-
(22,740)
(16,300)
(10,000)
(300)
316
37,492
(4,590)
886
835
10,000
(4,401)
(219,882)|
|---|---|---|---|
Details of the purpose of the restricted funds is as follows:
Creative Kernow: Funding for video studio recording kit.
Arts Council - Queen's Platinum Jubilee: Funding to support the activities as part of Her Majesty The Queen's Platinum Jubilee celebrations.
Arts Council Early Years - Dalla Project: Funding from National lottery fund for Early Years Music.
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.
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.
continued...
Page 29
**CORNWALL MUSIC SERVICE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023**
## **21. MOVEMENT IN FUNDS - continued**
Cornwall Community Fund - Early Years: Funding for the provision of Music to children specifically in the early years (0-5s).
Music Therapy for Holly Martin: Ringfenced fund for music therapy support to Holly Martin.
General Music Therapy Fund: Funding to be used only for the provision of Music Therapy.
Cornwall Community Fund - for Music Therapy and Inclusion Project: Funding obtained by Equality, Diversity and Inclusion lead for a bespoke therapy and inclusion project.
## **22. EMPLOYEE BENEFIT OBLIGATIONS**
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 £44,291 (2022: £45,827).
Included in creditors at the year end was £6,762 (2022: £6,942) in respect of the defined contribution pension scheme.
## **23. RELATED PARTY DISCLOSURES**
One trustees was reimbursed for expenses in the year, amounting to £180 (2022: £180).
## **Remuneration of key management personnel**
The remuneration of key management personnel is as follows.
|Aggregate compensation
|2023
£
69,978|2022
£
97,583|
|---|---|---|
During the year the charity received grants from a trust in which key management personnel G Churcher is a trustee. The grants received totalled £5,400 (2022: £2,352). G Churcher made donations amounting to £17,600 (2022: £16,042) to the charity, and wages, employer’s pension contributions and employer’s national insurance contributions totalling 23,754 (2022: £17,622) are paid in respect of the spouse of this individual.
Donations from trustees amounted to £290 (2022: £120).
Page 30
**CORNWALL MUSIC SERVICE TRUST**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2023**
|**INCOME AND ENDOWMENTS**
**Donations and legacies**
Donations and gifts
Gift aid
Grants
**Other trading activities**
T-shirt income
Goods and services recharged
**Investment income**
Deposit account interest
**Charitable activities**
Music tuition fees
Music therapy fees
**Other income**
Other income
**Total incoming resources**
**EXPENDITURE**
**Other trading activities**
Purchases
Goods and services recharged
Closing stock
**Charitable activities**
Wages
Social security
Pensions
Premises costs
Charitable publicity
Finance costs
Bad debts written off
Studio rental
Development costs
Instruments
Carried forward|2023
£
39,120
7,949
28,284
75,353
440
8,041
8,481
3,391
1,389,604
158,690
1,548,294
99,547
1,735,066
616
8,041
(30)
8,627
1,409,734
87,740
44,291
13,674
-
16,177
50,000
-
1,833
4,125
1,627,574|2022
£
23,872
3,907
108,013
135,792
-
-
-
291
1,379,808
-
1,379,808
36,916
1,552,807
-
-
-
-
1,376,222
86,494
45,827
15,314
3,202
7,421
113,049
9,927
-
2,023
1,659,479|
|---|---|---|
This page does not form part of the statutory financial statements
Page 31
**CORNWALL MUSIC SERVICE TRUST**
|**DETAILED STATEMENT OF FINANCIAL ACTIVITIES**
**FOR THE YEAR ENDED 31 AUGUST 2023**
2023
£
**Charitable activities**
Brought forward
1,627,574
Computer equipment
274
1,627,848
**Support costs**
**Other**
Insurance
3,618
Postage and stationery
4,457
Sundries
4,914
Subscriptions and memberships
3,905
Advertising and marketing
2,146
IT software and consumables
16,489
Use of funds towards tuition
2,929
Ensemble expenses
6,075
Workshop expenses
140
Inset expenses
3,342
Staff benefits
31,020
Subcontractors
117
Travel expenses
436
Legal and professional fees
3,663
Event costs
1,100
Staff training
301
84,652
**Governance costs**
Auditors' remuneration
5,340
Accountancy and legal fees
10,503
15,843
Total resources expended
1,736,970
**Net expenditure**
(1,904)|2022
£
1,659,479
53
1,659,532
2,071
242
3,103
4,032
2,239
14,576
3,749
5,741
1,896
5,455
36,913
4,956
6,189
10,467
5,000
-
106,629
3,300
1,324
4,624
1,770,785
(217,978)|
|---|---|
This page does not form part of the statutory financial statements
Page 32