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2021-12-31-accounts

Charity registration number 1159846

THE MUSIC VENUE TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

THE MUSIC VENUE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Jason Dormon
Christopher Prosser
Simon Hilton
Lohan Presencer
Sarah Thirtle
Jeremy Pritchard
Sarah Clover
Phyllis Belezos
Bonita McKinney
Scott Taylforth (Appointed 7 December
2021)
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 - 2
Statement of trustees' responsibilities 3
Independent auditor's report 4 - 6
Statement of financial activities 7
Balance sheet 8
Notes to the financial statements 9 - 14

THE MUSIC VENUE TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees present their annual report and financial statements for the year ended 31 December 2021.

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

Achievements and performance

2021 was a year in which the Charity's reputation as the one of the leading voices in the live music industry was further cemented and enhanced. Building on the work with the public, government and key stakeholders, the Charity guided over 900 grassroots music venues to successfully reopening after the pandemic, celebrating with a special event featuring Frank Turner on 19 July at Clapham Grand in London.

The Charity was able to guide venues through the process of grant applications, loans, subsidies and other sources of financial support across the UK, with the result that more than £140 million raised to mitigate the impacts of Covid and to support the reopening of grassroots music venues.

The Charity's financial performance was exceptional, exceeding the donations and grants received during the initial year of Covid. Since 2019, the Charity turnover has grown by over 800%. This has been achieved by embedding and developing partnerships right across the music industry, while building a substantial network of individual supporters in the music community.

The work of the management team and staff has been exceptional with the Charity’s work in 2021 recognised by a series of awards to the organisation and to team members, including the Heavy Music Award for Outstanding Contribution to Music and the Americana Music Award for Grassroots Contribution. In October, the Charity CEO was named Executive of the Year by the Ticketing Business Awards.

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 £1,463,999 (2020: £324,671).

During the financial year the charity received a total of restricted funds of £467,500 (2020: £736,931).

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.

Future developments

The charity intend to continue supporting the music venues in difficulties following the Covid 19 pandemic.

THE MUSIC VENUE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Structure, governance and management

The charity was established by a charitable trust deed on 20 February 2014 .

The trustees who served during the year and up to the date of signature of the financial statements were: Jason Dormon

Christopher Prosser Simon Hilton Lohan Presencer Sarah Thirtle Bengi Unsal (Resigned 1 March 2022) Jeremy Pritchard Sarah Clover Phyllis Belezos Bonita McKinney Scott Taylforth (Appointed 7 December 2021)

The constitution provides for a working party to be elected to direct the policy and general management of the charity.

The charity'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 charity's current policy concerning the payment of trade creditors is to:

Trade creditors of the charity 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.

Auditor

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

Disclosure of information to auditor

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

The trustees' r eport was approved by the Board of Trustees.

Scott Taylforth

Trustee Dated: 9 August 2022

THE MUSIC VENUE TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 2021 which comprise the statement of financial activities, the balance sheet and 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) .

In our opinion, the financial statements:

Basis for opinion

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

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.

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:

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 determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to 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.

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

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk 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, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

THE MUSIC VENUE TRUST

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

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures, inspecting correspondence with local tax authorities and evaluating advice received from external tax advisors.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to employment laws and regulations. We performed audit procedures to inquire of management and those charged with governance whether the company is in compliance with these laws and regulations and inspected correspondence with regulatory authorities.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// 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.

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 15 August 2022
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 section 1212 of the Companies Act 2006.

THE MUSIC VENUE TRUST

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

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Charitable activities
3
2,267,718
467,500
Expenditure on:
Charitable activities
4
1,134,954
344,991
Grants / bursaries
40,345
75,600
Total resources
expended
1,175,299
420,591
Net income for the year/
Net movement in funds
1,092,419
46,909
Fund balances at 1
January 2021
266,123
58,548
Fund balances at 31
December 2021
1,358,542
105,457		 Total
2021
£
2,735,218
1,479,945
115,945
1,595,890
1,139,328
324,671
1,463,999		 Total
funds
2020
£
997,657
454,881
285,768
740,649
257,008
9,115
266,123		 Restricted
funds
2020
£
736,931
162,123
516,260
678,383
58,548
-
58,548		 Total
2020
£
1,734,588
617,004
802,028
1,419,032
315,556
9,115
324,671

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

All income and expenditure derive from continuing activities.

THE MUSIC VENUE TRUST

BALANCE SHEET

AS AT 31 DECEMBER 2021

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		 2021
£
£
683,718
834,533
1,518,251
(54,252)
1,463,999
105,457
1,358,542
1,463,999		 2020
£
£
9,366
326,501
335,867
(11,196)
324,671
58,548
266,123
324,671

The financial statements were approved by the Trustees on 9 August 2022

Scott Taylforth Trustee

THE MUSIC VENUE TRUST

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

1 Accounting policies

Charity information

The Music Venue Trust is an unincorporated charity. Their address is Studio 215, 203-213 Mare Street, London, E8 3LY.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 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. The principal accounting policies adopted are set out below.

1.2 Going concern

The charity has considered the consequences of COVID-19 and other events and conditions, and the trustees have determined that they do not create a material uncertainty that casts significant doubt upon the charity’s ability to continue as a going concern.

A t the time of approving the financial statements , t he trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus t he 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.

THE MUSIC VENUE TRUST

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

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.

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

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.

THE MUSIC VENUE TRUST

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

3 Charitable activities

Income
Analysis by fund
Unrestricted
funds
Restricted
funds		 Grants
Sponsorship Earned Income
2021
2021
2021
£
£
£
2,277,625
61,300
10,130

1,810,125
61,300
10,130
467,500
-
-
2,277,625
61,300
10,130		 Public
Donations
TAMVA
memberships
2021
2021
£
£
385,563
600
385,563
600
-
-
385,563
600		 Total
2021
£
2,735,218
2,267,718
467,500
2,735,218		 Total
2020
£
1,734,588
997,657
736,931
1,734,588

For the year ended 31 December 2020

Income
Analysis by fund
Unrestricted funds
Restricted funds		 Grants
Sponsorship Earned Income
£
£
£
619,338
45,000
1,200
11,838
45,000
1,200
607,500
-
-
619,338
45,000
1,200		 Public
Donations
TAMVA
memberships
£
£
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

THE MUSIC VENUE TRUST

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

4 Charitable activities

Charitable
Charitable
Expenditure
Expenditure
Restricted
Restricted
2021
2020
£
£
Share of governance costs (see note 5) 1,479,945
617,004
Analysis by fund
Unrestricted funds 1,134,954
454,881
Restricted funds 344,991
162,123
1,479,945
617,004
Governance costs
2021
2020
£
£
Staff costs 235,686
122,112
Audit fees 6,500
4,000
Consultancy 362,814
351,765
Rent 19,023
12,600
Insurance -
560
Travel and subsistence 1,734
1,375
Interest charges 41
-
Event expenses 854,147
124,592
1,479,945
617,004
Analysed between
Charitable activities 1,479,945
617,004

5 Governance costs

Governance costs includes payments to the auditors of £6,500 (2020- £ 4,000 ) 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:

2021 2020
Number Number
5 4

THE MUSIC VENUE TRUST

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

7
Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was more than
£60,000 is as follows:
8
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
9
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Accruals and deferred income		 (Continued)
2021
2020
£
£
212,673
112,744
19,153
6,731
3,860
2,637
235,686
122,112
2021
2020
Number
Number
1
-
2021
2020
£
£
14,917
9,366
177,157
-
491,644
-
683,718
9,366
2021
2020
£
£
9,214
4,196
39,238
1,200
5,800
5,800
54,252
11,196

THE MUSIC VENUE TRUST

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

10
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
December 2021 are
represented by:
Current assets/
(liabilities)
1,358,542
105,457
1,358,542
105,457		 TotalUnrestricted
funds
2021
2020
£
£
1,463,999
266,123
1,463,999
266,123		 Restricted
funds
2020
£
58,548
58,548		 Total
2020
£
324,671
324,671

11 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2021
£
16,716
8,358
25,074		 2020
£
-
-
-

12 Related party transactions

There were no disclosable related party transactions during the year (2020 - none) .