**Charity Registration No. 1159846**
## **THE MUSIC VENUE TRUST**
**ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **THE MUSIC VENUE TRUST**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Jason Dormon|
|---|---|
||Christopher Prosser|
||Simon Hilton|
||Lohan Presencer|
||Sarah Thirtle|
||Bengi Unsal|
||Jeremy Pritchard|
||Sarah Clover|
||Phyllis Belezos|
||Bonita McKinney|
|**Charity number**|1159846|
|**Registered office**|Studio 215|
||Mare Street Studios|
||203-213 Mare Street|
||London|
||E8 3LY|
|**Auditor**|WD Audit Limited|
||Lower Ground Floor|
||111 Charterhouse Street|
||London|
||EC1M 6AW|
## **THE MUSIC VENUE TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 3|
|Independent auditor's report|4 - 6|
|Statement of financial activities|7|
|Balance sheet|8|
|Notes to the financial statements|9 - 13|
## **THE MUSIC VENUE TRUST**
## **TRUSTEES' REPORT** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
The trustees presents its report and financial statements for the year ended 31 December 2020.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Charities Act 2011 and the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005.
## **Objectives and activities**
The charity's object ive is to protect, secure and improve UK Grassroots Music Venues for the benefit of venues, communities and upcoming artists.
The trustees has paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
2020 was an exceptionally challenging year for the grassroots music venue sector, placing huge strain on the work of the charity and demanding exceptional efforts from the delivery team and staff. To respond to the Covid 19 crisis, the Charity was forced to expand its operations, significantly increasing the scale of its internal team and contracting a wide range of legal, professional, finance, licensing and funding advice and guidance to support venues to survive the crisis and avoid permanent closure.
These efforts were exceptional in their outcomes, with less than 1% of the sector forced to permanently close. The efforts of the charity delivered exceptional support to the sector through a range of public facing and private initiatives:
- SaveOurVenues - over £5 million raised from artists, industry and public
- ReviveLive – a partnership with the National Lottery resulting in £1.26 million invested in restarting artist touring
- Cultural Recovery Funding, England, Scotland and Wales - over £70 million raised from public funding
- Retail, Hospitality and Leisure Grants, Restrictions Grants, Additional Restrictions Grants, Localism Grants, Discretionary Grants - over £65 million raised from government grant schemes
- More than £140 million raised to mitigate the impacts of Covid and to support the reopening of grassroots music venues
- Pre Covid only 3% of venues had received public funding in the last 10 years - that figure is now 71%
- 83% of MVA Venue Members faced imminent permanent closure during the crisis
- 770 MVA Venue Members could have been permanently lost
While delivering this work the Charity supported government at all levels to work with the grassroots music sector to Reopen Every Venue Safely. The work of the management team and staff has been exceptional with the Charity’s work in 2020 recognised by a series of awards to the organisation and to team members, including the CEO being named by NME as one of the People of the Year 2020.
## **Financial review**
The trustees consider the financial position of the charity to be satisfactory.
At the balance sheet date the funds balance was in surplus totalling £324,671 (2019 - £9,115).
During the financial year the charity received a total of restricted fund of £736,931 (2019 - £Nil). The unrestricted funds increased by £759,820 to £997,657 (2019 - £237,837) an increase of 320% due to the increase of donations to support the venues in difficulties.
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.
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## **THE MUSIC VENUE TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **Future developments**
The charity intend to continue supporting the music venues in difficulties following the Covid 19 pandemic.
## **Subsequent events**
Mark Davyd (CEO) became a employee during the financial year 2021.
## **Structure, governance and management**
The charity was established by a charitable trust deed on 20 February 2014 .
The members of the trustees who served during the year and up to the date of signature of the financial statements were:
Jason Dormon Jeremy Mills (Resigned 23 March 2020) Christopher Prosser Simon Hilton Lohan Presencer Sarah Thirtle Bengi Unsal Jeremy Pritchard Ellie Roswell (Resigned 26 September 2020) Sarah Clover Phyllis Belezos Bonita McKinney
The constitution provides for a working party to be elected to direct the policy and general management of the charity.
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
- settle the terms of payment with suppliers when agreeing the terms of each transaction;
- ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
- pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the company at the year end were equivalent to 1 day's purchases, based on the average daily amount invoiced by suppliers during the year.
None of the trustees has any beneficial interest in the charity. All of the trustees are members of the charity.
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## **THE MUSIC VENUE TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **Statement of trustees' responsibilities**
The trustees is responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the trustees is required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees is responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable it to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. It is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Auditor**
WD Audit Limited were appointed as auditor to the company and a resolution proposing that they be reappointed will be put at a General Meeting.
## **Disclosure of information to auditor**
Each of the members of the trustees has confirmed that there is no information of which he is aware which is relevant to the audit, but of which the auditor is unaware. He has further confirmed that he has taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.
The trustees' r eport was approved by the Trustees.
## **Sarah Thirtle**
Trustee Dated: 28 October 2021
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## **THE MUSIC VENUE TRUST**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE MUSIC VENUE TRUST**
## **Opinion**
We have audited the financial statements of The Music Venue Trust (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice) .
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2020 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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## **THE MUSIC VENUE TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE MUSIC VENUE TRUST**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' r eport; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the s tatement of trustees' r esponsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determines 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 is responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .
A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Other matter s**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
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## **THE MUSIC VENUE TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE MUSIC VENUE TRUST**
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
**Roy Davis (Senior Statutory Auditor) for and on behalf of WD Audit Limited**
28 October 2021
**Chartered Accountants Statutory Auditor**
Lower Ground Floor 111 Charterhouse Street London EC1M 6AW
WD Audit Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.
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## **THE MUSIC VENUE TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**Notes**
**£**
**£**
**Income from:**
Charitable activities
**3**
997,657
736,931
**Expenditure on:**
Charitable activities
**4**
454,881
162,123
Grants / bursaries
285,768
516,260
**Total resources expended**
740,649
678,383
**Net income/(expenditure) for the year/**
**Net movement in funds**
257,008
58,548
Fund balances at 1 January 2020
9,115
-
**Fund balances at 31 December 2020**
266,123
58,548|**Total**
**2020**
**£**
1,734,588
617,004
802,028
1,419,032
315,556
9,115
324,671|Total
funds
2019
**£**
237,837
242,910
15,916
258,826
(20,989)
30,104
9,115|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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## **THE MUSIC VENUE TRUST**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2020**_
|**Notes**
**Current assets**
Debtors
**8**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**9**
Net current assets
**Income funds**
Restricted funds
Unrestricted funds|**2020**
**£**
9,366
326,501
335,867
(11,196)|**£**
324,671
58,548
266,123
324,671|**2019**
**£**
-
14,896
14,896
(5,781)|**£**
9,115
-
9,115
9,115|
|---|---|---|---|---|
The financial statements were approved by the Trustees on 28 October 2021
Sarah Thirtle **Trustee**
- 8 -
**THE MUSIC VENUE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **Charity information**
The Music Venue Trust is an unincorporated charity. Their address is The Ministry, 79 Borough Road, London, SE1 1DN.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
These financial statements for the year ended 31 December 2020 are the first financial statements of The Music Venue Trust prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 January 2019. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.4 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.
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## **THE MUSIC VENUE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **(Continued)**
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.
## **1.5 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.6 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.7 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Critical accounting estimates and judgements**
In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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## **THE MUSIC VENUE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **3 Charitable activities**
|Income
Analysis by fund
Unrestricted
funds
Restricted
funds|**Grants**
**Sponsorship Earned Income**
**2020**
**2020**
**2020**
**£**
**£**
**£**
619,338
45,000
1,200
11,838
45,000
1,200
607,500
-
-
619,338
45,000
1,200|**Public**
**Donations**
**TAMVA**
**memberships**
**2020**
**2020**
**£**
**£**
1,068,200
850
938,769
850
129,431
-
1,068,200
850|**Total**
**2020**
**£**
1,734,588
997,657
736,931
1,734,588|**Total**
**2019**
**£**
237,837
237,837
-
237,837|
|---|---|---|---|---|
## **For the year ended 31 December 2019**
|**Grants**
**Sponsorship Earned Income**
**£**
**£**
**£**
Income
33,863
63,357
60,195
Analysis by fund
Unrestricted funds
33,863
63,357
60,195
**Charitable activities**
Share of governance costs (see note 5)
**Analysis by fund**
Unrestricted funds
Restricted funds|**Public**
**Donations**
**TAMVA**
**memberships**
**Total**
**2019**
**£**
**£**
**£**
78,072
2,350
237,837
78,072
2,350
237,837
**Charitable**
**Expenditure**
**Restricted**
**Charitable**
**Expenditure**
**Restricted**
**2020**
**2019**
**£**
**£**
617,004
242,910
454,881
242,910
162,123
-
617,004
242,910|
|---|---|
## **4 Charitable activities**
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## **THE MUSIC VENUE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **5 Governance costs**
|Staff costs
Audit fees
Consultancy
Rent
Insurance
Travel and subsistence
Interest charges
Event expenses
Analysed between
Charitable activities|**2020**
**£**
122,112
4,000
351,765
12,600
560
1,375
-
124,592
617,004
617,004|2019
£
76,991
-
100,000
14,860
168
9,951
18
40,922
242,910
242,910|
|---|---|---|
Governance costs includes payments to the auditors of £ 4,000 (2019- £ nil ) for audit fees.
## **6 Trustees**
None of the trustees (or any persons connected with them) received any remuneration during the year .
## **7 Employees**
The average monthly number of employees during the year was:
|**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2020**
**Number**
4
**2020**
**£**
112,744
6,731
2,637
122,112|**2019**
**Number**
4
**2019**
**£**
72,807
2,835
1,349
76,991|
|---|---|---|
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## **THE MUSIC VENUE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**8**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
**9**
**Creditors: amounts falling due within one year**
Other taxation and social security
Trade creditors
Accruals and deferred income
**10**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2020**
**2020**
**£**
**£**
Fund balances at 31 December 2020 are
represented by:
Current assets/(liabilities)
266,123
58,548
266,123
58,548|**2020**
**2019**
**£**
**£**
9,366
-
**2020**
**2019**
**£**
**£**
4,196
3,227
1,200
754
5,800
1,800
11,196
5,781
**Total**Unrestricted
funds
**2020**
2019
**£**
£
324,671
9,115
324,671
9,115|
|---|---|
|||
## **11 Related party transactions**
There were no disclosable related party transactions during the year (2019 - none).
- 13 -