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← Cornwall Music Service Trust

2024-08-31-accounts

REGISTERED COMPANY NUMBER: 09268124 (England and Wales) REGISTERED CHARITY NUMBER: 1159622

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

FOR

CORNWALL MUSIC SERVICE TRUST (A COMPANY LIMITED BY GUARANTEE)

TC Group Statutory Auditors 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 2024

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 13
Report of the Independent Auditors 14 to 17
Statement of Financial Activities 18
Balance Sheet 19 to 20
Cash Flow Statement 21
Notes to the Cash Flow Statement 22
Notes to the Financial Statements 23 to 42
Detailed Statement of Financial Activities 43 to 44

CORNWALL MUSIC SERVICE TRUST

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 AUGUST 2024

TRUSTEES J M Bailey (resigned 14/2/2025)
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 (resigned 14/2/2025)
R M J Thomas
A L Tomkinson (appointed 20/2/2025)
R Osmond (appointed 20/2/2025)
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
Statutory Auditors
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 2024

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 2024. 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 Objectives and aims Charitable Objects (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.

Page 2

CORNWALL MUSIC SERVICE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

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.

Page 3

CORNWALL MUSIC SERVICE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

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 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 2024

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.

ACHIEVEMENT AND PERFORMANCE

Systems

Following last year's annual report where the challenges of Paritor, the then embedded client management system were reported on, the Trustees are pleased with the swift action by the office and management team to research and implement an alternative. SpeedAdmin has replaced Paritor and has already had a positive impact for all users. Staff have reported that it is a much more user friendly, efficient platform and customers (parents/guardians/clients/schools) have been equally positive. The office team have found it a much more intuitive system and the support received from the SpeedAdmin team is quick in response to query, ongoing to support training and the software is constantly being updated and improved. A new version of SpeedAdmin is being trialled across the UK by certain Music Services and Hubs with our office staff having already received access to view the new platform and offer feedback. One of the most useful tools of the software is the application which can be accessed by both staff and customers.

Staffing

Although numbers of staff remain fairly consistent there has been a modest stream of staff leaving and new members joining. As will be evidenced in the delivery map below in this report there has been a shift towards Piano, Keyboard, Drums and Guitar as more popular instruments with a reduction in student numbers over the past few years engaging with Brass, Woodwind and String instruments. This is partly to do with choice but also staffing available in these less engaged with instrumental families and the subset of instruments therein presents a challenge. This pattern will need to be addressed.

Partnerships

Cornwall Music Service Trust (CMST) enjoys a wealth of partnerships both locally and nationally. This is a representation of the breadth of delivery that goes beyond instrumental, vocal and ensemble tuition. The Music Therapy provision successfully engages with partner organisations through the Music Therapy Partnership that meets termly, the Early Years provision draws on the expertise of the Early Years Steering Group and CMST already works closely with key stakeholders and partner organisations. The Head of Service is working closely with Falmouth University and exploring options with Music Colleges to develop a strategic partnership that develops the workforce for the future: CMST hopes to develop a formal training programme. CMST continues to work closely with the Hub Lead Organisation, AsOne, to ensure that the funding provided by the Department for Education(administered by Arts Council England) and Cornwall Schools Forum is used most effectively to support children and young people. This requires feedback and challenge as and when appropriate.

Page 5

CORNWALL MUSIC SERVICE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

Delivery

For a comprehensive breakdown of CMST delivery please use the hyperlink below to access a graphical representation of delivery by area, discipline and instrument:

https://drive.google.com/file/d/1im42MHU2zdMdkALmBqiazXEggJ6AF8Sl/view?usp=sharing

Two important charts from this presentation are lifted out below which evidence the earlier statements of trends of delivery.

The above shows the total of instrumental and vocal delivery by percentage. With the below chart analysing this by geographic area.

Page 6

CORNWALL MUSIC SERVICE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

ACHIEVEMENT AND PERFORMANCE

This data analysis is important because when reviewing the overall performance of CMST through the financial reports, levels of delivery are showing a positive trend. However this is supported by the increased provision of Guitar, Keyboard and Percussion which is to be welcomed. The negative side of this is the reduction in other instrumental families and instruments. These are the backbone to the ensemble network which now faces challenges due to the reduction of pupil numbers.

This presents a complex situation where staffing numbers are in decline and so are the pupils and both need each other to support growth. One solution would be to better target Whole Class Ensemble Tuition, otherwise known as School Projects or First Access, so that where there are already staff who can provide these services in the areas of need they do so with the ability to offer progression. The opposing solution would be to proactively recruit staff to develop the instrumental area of need and develop a sustainable model of delivery. The funding for this area of work is controlled by AsOne.

It will more than likely require CMST to look to its financial resources to address this area for development and hope that match funding can also be found to enhance this provision.

Page 7

CORNWALL MUSIC SERVICE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

ACHIEVEMENT AND PERFORMANCE

Innovation

CMST constantly reviews all areas of process and delivery to understand what could be done better. One example of this is the opportunity to appraise pupils in an accessible, meaningful and supportive way. Mastering Music Awards have been launched as one solution to support this with a digital appraisal undertaken for students. CMST staff support their learners through performance that is appraised by an independent assessor and if successful learners are awarded a level of Copper, Tin, Gold or Platinum that is accompanied by a certificate and pin badge. This has helped improve nominations for the established Pupil of the Month award that in turn helps identify a CMST Pupil of the Year, celebrated at the end of every academic year.

The positive news on this and much more can be found via the termly newsletters that are published on the CMST website: https://cmst.co.uk/news

Finance and Investment

CMST has been able to dedicate some financial reserves to investment. After careful consideration and due diligence, an amount has been invested with M and G Securities. The return on investment has already been healthy allowing for the interest earnt to be used for development work in the North of Cornwall.

Looking Forward

The next financial year will cover a milestone for CMST, the 10 year anniversary of the Charity which was established in late 2014. Plans are already underway to put on multiple events across Cornwall, culminating in a grand concert at the Hall for Cornwall. This showcase will present the wide breadth of service provision, exceptional talent from the children and young people of Cornwall and say a big thank you to all that have supported the organisation thus far.

FINANCIAL REVIEW

Financial position

The Company's principal source of income is music tuition fees which were £1,500,820 (2023: £1,389,604). All of Cornwall Music Trust's expenditure was spent in advancement of its charitable objectives.

The net incoming resources for the year were £40,426 (2023: outgoing resources £1,904).

Investment policy and objectives

The trustees have reviewed the social, environmental and ethical considerations when setting an investment policy and making investments.

The year end market value of the investment portfolio was £305,713. During the year, the trustees made the decision to invest £300k of the charity's free reserves with M & G Securities.

Page 8

CORNWALL MUSIC SERVICE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

FINANCIAL REVIEW

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 2024 the Company had free reserves of £150,102 (2023: £316,075).

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 charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The total reserves at 31st August 2024 were £674,110 (2023: £633,684). This includes free reserves of £150,102 (2023: £316,075), designated reserves of £502,576 (2023: £302,394), and restricted reserves of £21,432 (2023: £15,215).

The deficit fund, which is a designated fund, totals £500,000. It is held to ensure that the charity has sufficient free reserves outlined in the reserves policy.

Page 9

CORNWALL MUSIC SERVICE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

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.

Page 10

CORNWALL MUSIC SERVICE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

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 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 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 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 11

CORNWALL MUSIC SERVICE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

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. 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

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

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:

Page 12

CORNWALL MUSIC SERVICE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

AUDITORS

In accordance with the company's articles, a resolution proposing that TC Group 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.

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

.......................................................................... R M J Thomas - Trustee

Page 13

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CORNWALL MUSIC SERVICE TRUST

Opinion

We have audited the financial statements of Cornwall Music Service Trust (the 'charitable company') for the year ended 31 August 2024 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'.

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 Auditors' 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 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. 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 the audit:

Page 14

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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

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.

Auditors’ 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 a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Page 15

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CORNWALL MUSIC SERVICE TRUST

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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

We communicate with those charged governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Page 16

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS 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. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

James Pearce FCA (Senior Statutory Auditor) for and on behalf of TC Group Statutory Auditors The Old Carriage Works Moresk Road Truro Cornwall TR1 1DG Date: .............................................

Page 17

CORNWALL MUSIC SERVICE TRUST

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2024

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Charitable activities
6
Other Education
Other trading activities
4
Investment income
5
Other income
7
Total
EXPENDITURE ON
Raising funds
8
Charitable activities
9
Other Education
Total
Net gains on investments
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
8,321
1,673,356
2,135
9,455
66,031
1,759,298
1,583
1,729,219
1,730,802
5,713
34,209
618,469
652,678		 Restricted
funds
£
21,905
-
-
-
-
21,905
-
15,688
15,688
-
6,217
15,215
21,432		 2024
Total
funds
£
30,226
1,673,356
2,135
9,455
66,031
1,781,203
1,583
1,744,907
1,746,490
5,713
40,426
633,684
674,110		 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

The notes form part of these financial statements

Page 18

CORNWALL MUSIC SERVICE TRUST

BALANCE SHEET 31 AUGUST 2024

Notes
FIXED ASSETS
Intangible assets
16
Tangible assets
17
Investments
18
CURRENT ASSETS
Stocks
19
Debtors
20
Cash at bank
CREDITORS
Amounts falling due within one year
21
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
24
Unrestricted funds:
General fund
Deficit Reserve - Designated
Mark Wilkin Memorial Bursary - Designated
Superstrings Group
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
1,833
10,016
305,713
317,562
-
197,126
202,599
399,725
(64,609)
335,116
652,678
652,678		 Restricted
funds
£
-
-
-
-
-
-
21,432
21,432
-
21,432
21,432
21,432		 2024
Total
funds
£
1,833
10,016
305,713
317,562
-
197,126
224,031
421,157
(64,609)
356,548
674,110
674,110
150,102
500,000
1,646
930
652,678
21,432
674,110		 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

The notes form part of these financial statements

continued...

Page 19

CORNWALL MUSIC SERVICE TRUST

BALANCE SHEET - continued

31 AUGUST 2024

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

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

............................................. R M J Thomas - Trustee

The notes form part of these financial statements

Page 20

CORNWALL MUSIC SERVICE TRUST

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
2024
Notes
£
Cash flows from operating activities
Cash generated from operations
1
22,605
Tax credits
(57,076)
Net cash (used in)/provided by operating activities
(34,471)
Cash flows from investing activities
Purchase of intangible fixed assets
-
Purchase of tangible fixed assets
(4,886)
Purchase of fixed asset investments
(300,000)
Interest received
9,455
Net cash used in investing activities
(295,431)
Cash flows from financing activities
Loan repayments in year
-
Net cash provided by/(used in) financing activities
-
Change in cash and cash equivalents in the
reporting period
(329,902)
Cash and cash equivalents at the beginning
of the reporting period
2
553,933
Cash and cash equivalents at the end of the
reporting period
2
224,031		 2023
£
84,844
(59,710)
25,134
(5,500)
(11,273)
-
3,391
(13,382)
(164,500)
(164,500)
(152,748)
706,681
553,933

The notes form part of these financial statements

Page 21

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2024

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
2024 2023
£ £
Net income/(expenditure) for the reporting period (as per the Statement
of Financial Activities) 40,426 (1,904)
Adjustments for:
Depreciation charges 7,348 6,232
Gains on investments (5,713) -
Interest received (9,455) (3,391)
Decrease/(increase) in stocks 30 (30)
(Increase)/decrease in debtors (27,717) 92,706
Increase/(decrease) in creditors 17,686 (8,769)
Net cash provided by operations 22,605 84,844
2. ANALYSIS OF CASH AND CASH EQUIVALENTS
2024 2023
£ £
Cash and cash equivalents 224,031 553,933
Total cash and cash equivalents 224,031 553,933
3. ANALYSIS OF CHANGES IN NET FUNDS
At 1/9/23 Cash flow At 31/8/24
£ £ £
Net cash
Cash at bank 553,933 (329,902) (224,031)
553,933 (329,902) 224,031
Total 553,933 (329,902) 224,031

The notes form part of these financial statements

Page 22

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

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 9 members at 31 August 2024 (2023: 11).

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, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

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.

Critical accounting judgements and key sources of estimation uncertainty

Key sources of estimation uncertainty

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Valuation of fixed asset investments

Fixed asset investments are included in the accounts at a valuation determined annually by the investment portfolio managers. The valuation of current asset investments are based on observable market prices. Such valuations are subjective and prone to changes in the market and other economic factors.

Useful economic life of tangible fixed assets

The charity makes an estimate for the useful economic life of tangible fixed assets taking into account the age, condition, residual value and the expectations for the usage of each class of asset and applies a policy to charge depreciation on a systematic basis over that useful life, taking into account any impairment that has been identified.

Critical judgements

The trustees do not believe there are any critical judgements that have been made in applying the charity’s accounting policies.

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.

continued...

Page 23

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

2. ACCOUNTING POLICIES - continued

Income

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.

Fee income is measured at the fair value of the consideration received or receivable and represents amounts receivable for 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.

Intangible fixed assets other than goodwill

Amortisation is provided at the following annual rates in order to write off each asset over its estimates useful life.

Website - 33% on cost

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.

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.

continued...

Page 24

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets

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.

Basic financial assets

Basic financial assets, which include stock, trade debtors, other debtors, 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 trade and other creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present

continued...

Page 25

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

2. ACCOUNTING POLICIES - continued

Financial instruments

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
Grants received, included in the above, are as follows:
Early Years Music Education
BBC Children in Need Music Therapy
Cornwall Community Fund - Music Therapy
Headley Trust
The National Foundation for Youth Music
Ruth Burden Community Trust		 2024
£
9,776
3,029
17,421
30,226
2024
£
-
-
-
1,765
14,906
750
17,421		 2023
£
39,120
7,949
28,284
75,353
2023
£
17,784
500
10,000
-
-
-
28,284

continued...

Page 26

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

3. DONATIONS AND LEGACIES - continued

Early Years Music Education - a grant has been received for £Nil (2023: £17,784) to support Early Years Music Education.

BBC Children In Need Music Therapy - a grant has been received for £Nil (2023: £500) to support Music Therapy provision.

Cornwall Community Fund - Music Therapy - a grant has been received for £Nil (2023: £10,000) to support Music Therapy delivery.

Headley Trust - grants have been received for £1,765 (2023: £Nil) to subsidise music tuition lessons.

The National Foundation for Youth Music - grants have been received for £14,906 (2023: £Nil) to support Early Years Music Education.

Ruth Burden Community Trust - a grant has been received for £750 (2023: £Nil) to support Early Years Music Education.

4. OTHER TRADING ACTIVITIES

4. OTHER TRADING ACTIVITIES
2024 2023
£ £
T-shirt income 1,456 440
Goods and services recharged 679 8,041
2,135 8,481
5. INVESTMENT INCOME
2024 2023
£ £
Deposit account interest 6,550 3,391
Fixed asset investment income 2,905 -
9,455 3,391

continued...

Page 27

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 AUGUST 2024

6.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Music tuition fees
Other Education
Music therapy fees
Other Education
7.
OTHER INCOME
Other income		 2024
£
1,500,820
172,536
1,673,356
2024
£
66,031		 2023
£
1,389,604
158,690
1,548,294
2023
£
99,547
Other income relates to the receipt of Orchestra Tax Relief claimed from HMRC, Other income relates to the receipt of Orchestra Tax Relief claimed from HMRC, event and workshop income, and
miscellaneous income.
8. RAISING FUNDS
Other trading activities
2024 2023
£ £
Opening stock 30 -
Purchases 1,553 8,657
Closing stock - (30)
1,583 8,627
9. CHARITABLE ACTIVITIES COSTS
Direct Support
Costs (see costs (see
note 10) note 11) Totals
£ £ £
Other Education 1,636,909 107,998 1,744,907

continued...

Page 28

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 AUGUST 2024

10. DIRECT COSTS OF CHARITABLE ACTIVITIES

Staff costs
Premises costs
Finance costs
Bad debts written off
Depreciation
11.
SUPPORT COSTS
Other Education
Support costs, included in the above, are as follows:
Insurance
Postage and stationery
Sundries
Subscriptions and memberships
Advertising and marketing
IT software and consumables
Use of funds towards tuition
Ensemble expenses
Workshop expenses
Inset expenses
Staff benefits
Subcontractors
Travel expenses
Legal and professional fees
Event costs
Staff training
Auditors' remuneration
Accountancy and legal fees		 Other
£
93,598		 2024
£
1,571,830
13,974
2,837
40,920
7,348
1,636,909
Governance
costs
£
14,400
2024
Other
Education
£
4,976
1,313
3,378
4,450
2,844
21,042
1,108
7,728
688
5,360
33,716
3,879
21
3,095
-
-
14,400
-
107,998		 2023
£
1,541,765
13,674
16,177
50,000
6,232
1,627,848
Totals
£
107,998
2023
Total
activities
£
3,618
4,457
4,914
3,905
2,146
16,489
2,929
6,075
140
3,342
31,020
117
436
3,663
1,100
301
5,340
10,503
100,495

continued...

Page 29

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

12. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2024 2023
£ £
Auditors' remuneration 14,400 5,340
Depreciation - owned assets 5,514 4,399
Website amortisation 1,834 1,833

13. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2024 nor for the year ended 31 August 2023.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2024 nor for the year ended 31 August 2023.

14. STAFF COSTS

STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 2024
£
1,434,301
92,182
45,347
1,571,830		 2023
£
1,409,734
87,740
44,291
1,541,765

The average monthly number of employees during the year was as follows:

Teaching
Administration		 2024
110
3
113		 2023
110
3
113

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

£60,001 - £70,000
£70,001 - £80,000		 2024
-
1
1		 2023
1
-
1

continued...

Page 30

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 AUGUST 2024

15.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
35,970
Charitable activities
Other Education
1,548,294
Other trading activities
8,481
Investment income
3,391
Other income
99,547
Total
1,695,683
EXPENDITURE ON
Raising funds
8,627
Charitable activities
Other Education
1,655,617
Total
1,664,244
NET INCOME/(EXPENDITURE)
31,439
RECONCILIATION OF FUNDS
Total funds brought forward
587,030
TOTAL FUNDS CARRIED FORWARD
618,469
16.
INTANGIBLE FIXED ASSETS
COST
At 1 September 2023 and 31 August 2024
AMORTISATION
At 1 September 2023
Charge for year
At 31 August 2024
NET BOOK VALUE
At 31 August 2024
At 31 August 2023		 Restricted
funds
£
39,383
-
-
-
-
39,383
-
72,726
72,726
(33,343)
48,558
15,215		 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
Website
£
8,860
5,193
1,834
7,027
1,833
3,667

continued...

Page 31

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 AUGUST 2024

17. TANGIBLE FIXED ASSETS

17. TANGIBLE FIXED ASSETS
Computer
Instruments equipment Totals
£ £ £
COST
At 1 September 2023 17,331 3,335 20,666
Additions 1,530 3,356 4,886
At 31 August 2024 18,861 6,691 25,552
DEPRECIATION
At 1 September 2023 7,173 2,849 10,022
Charge for year 4,640 874 5,514
At 31 August 2024 11,813 3,723 15,536
NET BOOK VALUE
At 31 August 2024 7,048 2,968 10,016
At 31 August 2023 10,158 486 10,644
18. FIXED ASSET INVESTMENTS
Listed
investments
£
MARKET VALUE
Additions 300,000
Revaluations 5,713
At 31 August 2024 305,713
NET BOOK VALUE
At 31 August 2024 305,713
At 31 August 2023 -
There were no investment assets outside the UK.
Cost or valuation at 31 August 2024 is represented by:
Listed
investments
£
Valuation in 2024 5,713
Cost 300,000
305,713

continued...

Page 32

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

18. FIXED ASSET INVESTMENTS - continued

If the listed investments had not been revalued they would have been included at the following historical cost:

Cost
Fixed asset investments were valued on an open market basis on 31 August 2024 by M
All investments are listed on the UK stock exchange.
19.
STOCKS
Stocks
20.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Tax
Prepayments
21.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses		 2024
£
300,000
& G Securities.
2024
£
-
2024
£
73,197
-
116,786
7,143
197,126
2024
£
8,632
15,161
7,594
33,222
64,609

continued...

Page 33

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

22. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year 2024
£
13,674		 2023
£
13,674

Payments in connection with operating leases during the year totalled £13,674 (2023: £13,674). At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases.

continued...

Page 34

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

23. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Deficit Reserve - Designated
Mark Wilkin Memorial Bursary -
Designated
Superstrings Group
Restricted funds
Early Years Music Education
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
Headley Trust
Pitch up and Sing Fund
Cornwall Community Foundation - Ruth
Burden Community Trust
The National Foundation for Youth Music
TOTAL FUNDS		 At 1/9/23
£
316,075
300,000
2,394
-
618,469
2,556
824
114
886
835
10,000
-
-
-
-
15,215
633,684		 Net
movement
in funds
£
34,027
-
(748)
930
34,209
(2,302)
(360)
-
(1,260)
2,032
(7,885)
1,765
(53)
750
13,530
6,217
40,426		 Transfers
between
funds
£
(200,000)
200,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 At
31/8/24
£
150,102
500,000
1,646
930
652,678
254
464
114
(374)
2,867
2,115
1,765
(53)
750
13,530
21,432
674,110

continued...

Page 35

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

23. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Mark Wilkin Memorial Bursary - Designated
Superstrings Group
Restricted funds
Early Years Music Education
Radford Trust
Music Therapy for Holly Martin
General Music Therapy Fund
Cornwall Community Fund - for Music
Therapy and Inclusion Project
Headley Trust
Pitch up and Sing Fund
Cornwall Community Foundation - Ruth
Burden Community Trust
The National Foundation for Youth Music
TOTAL FUNDS		 Incoming
resources
£
1,756,962
-
2,336
1,759,298
1,376
-
481
2,323
-
1,765
1,680
750
13,530
21,905
1,781,203		 Resources
expended
£
(1,728,648)
(748)
(1,406)
(1,730,802)
(3,678)
(360)
(1,741)
(291)
(7,885)
-
(1,733)
-
-
(15,688)
(1,746,490)		 Gains and
losses
£
5,713
-
-
5,713
-
-
-
-
-
-
-
-
-
-
5,713		 Movement
in funds
£
34,027
(748)
930
34,209
(2,302)
(360)
(1,260)
2,032
(7,885)
1,765
(53)
750
13,530
6,217
40,426

continued...

Page 36

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

23. MOVEMENT IN FUNDS - continued

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
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

continued...

Page 37

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

23. 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
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)

continued...

Page 38

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 AUGUST 2024

23. MOVEMENT IN FUNDS - continued

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
Superstrings Group
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
Headley Trust
Pitch up and Sing Fund
Cornwall Community Foundation - Ruth
Burden Community Trust
The National Foundation for Youth Music
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
£
67,513
-
(2,795)
930
65,648
(29,746)
(2,149)
(10,000)
(1,241)
(4,590)
(374)
2,867
2,115
1,765
(53)
750
13,530
(27,126)
38,522		 Transfers
between
funds
£
(200,000)
200,000
-
-
-
(4,704)
-
-
-
4,704
-
-
-
-
-
-
-
-
-		 At
31/8/24
£
150,102
500,000
1,646
930
652,678
254
-
-
464
114
(374)
2,867
2,115
1,765
(53)
750
13,530
21,432
674,110

continued...

Page 39

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

23. 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
Superstrings Group
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
Headley Trust
Pitch up and Sing Fund
Cornwall Community Foundation - Ruth
Burden Community Trust
The National Foundation for Youth Music
TOTAL FUNDS		 Incoming
resources
£
3,452,645
-
2,336
3,454,981
19,160
1,350
-
1
-
3,037
10,015
10,000
1,765
1,680
750
13,530
61,288
3,516,269		 Resources
expended
£
(3,390,845)
(2,795)
(1,406)
(3,395,046)
(48,906)
(3,499)
(10,000)
(1,242)
(4,590)
(3,411)
(7,148)
(7,885)
-
(1,733)
-
-
(88,414)
(3,483,460)		 Gains and
losses
£
5,713
-
-
5,713
-
-
-
-
-
-
-
-
-
-
-
-
-
5,713		 Movement
in funds
£
67,513
(2,795)
930
65,648
(29,746)
(2,149)
(10,000)
(1,241)
(4,590)
(374)
2,867
2,115
1,765
(53)
750
13,530
(27,126)
38,522

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.

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 40

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

23. 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.

Headley Trust: Grant received for the purpose of subsidising tuition lessons.

Pitch Up and Sing Fund: Donations received ringfenced for music therapy dementia group costs.

Cornwall Community Foundation - Ruth Burden Community Trust:

The National Foundation for Youth Music: Funding to used for the Early Years Baby Sounds project.

Included within the charity’s funds is a revaluation reserve of £5,713 (2023: £nil).

24. 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 £45,347 (2023: £44,291).

Included in creditors at the year end was £7,594 (2023: £6,762) in respect of the defined contribution pension scheme.

25. RELATED PARTY DISCLOSURES

During the year Cornwall Music Service Trust received donations from trustees and key management totalling £236 (2023: £17,890).

During the year Cornwall Music Service Trust received fixed assets with the value of £1,410 from an entity in which a trustee is the chair. The amount paid was £350 with £1,060 treated as a donation.

During the year Cornwall Music Service Trust received income totalling £11,135 (2023: £8,550) from entities in which there are common directors/trustees.

During the year Cornwall Music Service Trust incurred expenses totalling £15,424 (2023: £17,711) with entities in which there are common directors/trustees.

During the year a close family member of key management personnel received wages of £16,700 (2023: £23,754).

During the year Cornwall Music Service Trust invested £400k with M & G Securities of which £100k belongs to The James Sargent Early Years Music Education Trust. This amount is not included in Cornwall Music Service Trust's accounts.

continued...

Page 41

CORNWALL MUSIC SERVICE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

25. RELATED PARTY DISCLOSURES - continued

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

Aggregate compensation 2024
£
71,176		 2023
£
69,978

During the year the charity received grants from a trust in which key management personnel G Churcher is a trustee. The grants received totalled £nil (2023: £5,400).

Page 42

CORNWALL MUSIC SERVICE TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024

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
Fixed asset investment income
Charitable activities
Music tuition fees
Music therapy fees
Other income
Other income
Total incoming resources
EXPENDITURE
Other trading activities
Opening stock
Purchases
Goods and services recharged
Closing stock
Charitable activities
Wages
Carried forward		 2024
£
9,776
3,029
17,421
30,226
1,456
679
2,135
6,550
2,905
9,455
1,500,820
172,536
1,673,356
66,031
1,781,203
30
874
679
-
1,583
1,434,301
1,434,301		 2023
£
39,120
7,949
28,284
75,353
440
8,041
8,481
3,391
-
3,391
1,389,604
158,690
1,548,294
99,547
1,735,066
-
616
8,041
(30)
8,627
1,409,734
1,409,734

This page does not form part of the statutory financial statements

Page 43

CORNWALL MUSIC SERVICE TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024

Charitable activities
Brought forward
Social security
Pensions
Premises costs
Finance costs
Bad debts written off
Development costs
Instruments
Computer equipment
Support costs
Other
Insurance
Postage and stationery
Sundries
Subscriptions and memberships
Advertising and marketing
IT software and consumables
Use of funds towards tuition
Ensemble expenses
Workshop expenses
Inset expenses
Staff benefits
Subcontractors
Travel expenses
Legal and professional fees
Event costs
Staff training
Governance costs
Auditors' remuneration
Accountancy and legal fees
Total resources expended
Net income/(expenditure)		 2024
£
1,434,301
92,182
45,347
13,974
2,837
40,920
1,834
4,640
874
1,636,909
4,976
1,313
3,378
4,450
2,844
21,042
1,108
7,728
688
5,360
33,716
3,879
21
3,095
-
-
93,598
14,400
-
14,400
1,746,490
34,713		 2023
£
1,409,734
87,740
44,291
13,674
16,177
50,000
1,833
4,125
274
1,627,848
3,618
4,457
4,914
3,905
2,146
16,489
2,929
6,075
140
3,342
31,020
117
436
3,663
1,100
301
84,652
5,340
10,503
15,843
1,736,970
(1,904)

This page does not form part of the statutory financial statements

Page 44