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2022-03-31-accounts

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

The trustees present their report with the financial statements of the charity for the year ended 31 March 2022. 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).

The financial statements cover the period from 1 April 2021 to 31 March 2022.

Cllr Chris Barnham (appointed 27 September 2017,re-elected September 2020)
Lydia Brookes (appointed 27 September 2017,re-elected September 2020)
Dame Joan Ruddock (appointed 20 March 2019,re-elected July2022)
Susie York-Skinner (appointed 10 December 2018,re-elected December 2021)
Fiona Lambert (appointed 10 December 2018,re-elected December 2021)
Louise Alexander (appointed 12 February2020,resigned February2022)
Robert Kigozi (appointed 22 July2021)
AudreyBleazard (appointed 22 July2021)
Jim Ripley (appointed 23 March 2022)
Chair Dame Joan Ruddock from March 2019
Secretary Stephen Sealy
Chief Executive CharlyRichardson

Lewisham Music was registered with Charity Commission on 17 October 2016 as a Charitable Incorporated Organisation (CIO), registered charity number 1169721. On 1 April 2017 Lewisham Music Service was transferred from Lewisham Council to Lewisham Music. Staff were transferred across under Transfer Undertakings (Protection of Employment) (TUPE) guidelines. Pre-transfer redundancy costs and Local Government Pension Scheme liabilities for transferring members have been underwritten by Lewisham Council for the lifetime of the charity.

There are 118 Music Education Hubs across England, which were established in 2012 after the Department for Education and the Department for Culture, Media & Sport published ‘ The Importance of Music: A National Plan for Music Education’. Music Education Hubs are a collective of music education providers in a local-authority area, led by one organisation (often what would have formerly been known as a music service). Lewisham Music is the lead partner of the Music Education Hub for the London Borough of Lewisham. In partnership with local and national organisations, we deliver and support a range of musical opportunities in schools and community settings across the London borough of Lewisham.

The National Plan for Music Education sets out Core and Extension objectives for Music Education Hubs:

CORE ROLES

EXTENSION ROLES

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

These roles broadly act as the foundation of Lewisham Music’s charitable work, and are the basis for our government remit and funding, which comes from Department for Education (DfE). Arts Council England (ACE) are the fundholder for DfE’s Music Hub Grant, and are responsible for monitoring the effectiveness of all Music Education Hub lead organisations, including Lewisham Music.

STATEMENT FROM THE CHAIR OF TRUSTEES

Having successfully protected the organisation and our workforce through the use of Culture Recovery Funding (CRF), the Coronavirus Job Retention Scheme, and innovative developments in online programme delivery, Lewisham Music has come out of the pandemic in a strong position. This year has seen steady post-pandemic growth, with important developments to our programmes, partnerships, funding streams and governance structure.

The number of weekly school programmes we deliver is now higher than pre-pandemic, and our music tutor workforce has grown as a result. Lewisham Music moved into its premises above the Fellowship Inn in Bellingham in summer 2019, but 2021-2022 was the year this new community centre really took off, with delayed launch events happening in September and the creation of a weekly programme serving young people five evenings per week. The Fellowship has allowed us to strengthen local partnerships, reach diverse and disadvantaged communities and young people, and create new income streams through premises hire.

Our fundraising track-record is now proven, with successes in attracting support from trusts, foundations and corporate funds for equipment, new programmes and bursary support for children from low-income households. We are grateful to these funders and partners, including London Music Fund, Awards for Young Musicians, Youth Music, The Matthew Nicholls Foundation, SONY’s Global Social Justice Fund, Jack Petchey Foundation and more. We are also grateful for the confidence and support of our other stakeholders including our core funders Arts Council England and the Department for Education.

The charity recognises the impact that the cost-of-living crisis is having on the community we serve. As well as ambitiously increasing our bursary support through online fundraising campaigns, we have kept our community programme fees frozen.

As the organisation goes into the new academic year 2022-2023, I welcome the publication of The Power of Music to Change Lives , an ambitious new National Plan for Music Education which was published in June 2022 and will come into force in April 2023. The focus on supporting progression for all young musicians- regardless of their background and circumstances- is something that Lewisham Music particularly welcomes. We are proud of the work that has been done to make music education more inclusive and equitable, for example through the cultivation of a more diverse workforce, the creation of a Tutor Diversity Ambassador role, and the large increase in Children in Care and children from low-income households attending programmes.

We are delighted to be reaching more young people than ever, playing a central role in their education and creative development. Our move towards being a more socially focused charity which is embedded within the community we serve has been particularly important in 2022 as Lewisham celebrates being the London Borough of Culture.

I am pleased to be continuing to Chair a Board of talented Trustees who are committed to providing a vibrant and sustainable charity to the young people of Lewisham.

Dame Joan Ruddock (Chair, Lewisham Music)

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

OUR AIMS, OBJECTIVES AND ACTIVITIES

AIMS & OBJECTIVES

Lewisham Music’s primary charitable aim is to offer all children and young people across the London Borough of Lewisham a diverse range of musical opportunities. Our target audience is 5–18-year-olds, as this is the age-group linked to our core funding from DfE/ACE. However, we also have an ambition to attract funding so that we can do more work with Early Years and Foundation age children (0–5-year-olds) and with adults.

We are an education-focused charity that delivers high-quality teaching across a range of musical instruments and styles. A National Plan for Music Education , Music in schools: What Hubs must do and the Model Music Curriculum have all emphasised the fact that Music Education Hubs must put themselves at the heart of music in their area, offering not just services but also expertise and professional support. Lewisham Music is here to support and enhance the music curriculum delivered within schools, and to link this with opportunities being offered by local arts organisations.

We are committed to providing extension and progression opportunities for young musicians through after-school, weekend and holiday activities in the community. We operate after-school music groups on a Friday; a Saturday Music Centre (which includes bands, choirs, ensembles, music theory lessons and individual tuition); and after-school instrumental tuition, choirs, ensembles, and creative holiday programmes at our new premises at The Fellowship. In addition, we offer young people the opportunity to perform in a range of community and professional settings.

Alongside our work as a provider and supporter of quality music education, we are increasingly broadening our work to include programmes that specifically position Lewisham Music as a community-focused charity that uses music to deliver social outcomes.

ACTIVITIES

Activities currently delivered directly by Lewisham Music both within schools and community settings include:

These activities cover a broad range of instruments and styles; everything from classical violin and concert bands to folk and jazz groups, rap collectives, pop choirs, Samba groups, rock bands and much more.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

As the lead partner of Lewisham Music Education Hub, we have a remit to connect and support the wider ecosystem of music education in the borough and beyond. This means delivering networking opportunities, training, Continuing Professional Development and professional advice and support for staff from Lewisham Music, Lewisham schools and partner organisations.

During 2021-2022, at Lewisham Music we had 11 office/management staff (a mix of part-time and full-time positions) and a freelance project producer. We had 65 Music Tutors who delivered activities on a PAYE, variablehours basis.

OUR MISSION AND VALUES

We believe that all children and young people in the borough of Lewisham should have access to a diverse range of high-quality, inspirational musical activities which are appropriate for their ability and aligned to their interests. Music is a joy within itself and should be valued as such. However, we are passionate about the other benefits that music can bring to young people’s skills and development; their personal and social confidence and sense of selfworth; creativity and self-expression; and their longer-term ambitions, aspirations, and achievements. Music has been proven to have a transformational impact on positive wellbeing and mental health.

Equity, diversity and inclusion is at the heart of what we do. We are passionate about overcoming barriers to participation for all young people, whether that be due to an additional need or disability, geography, a financial barrier or other systemic issues. We are working hard to seek investment and skills to make music education more equitable, and currently have programmes that work specifically with Looked After Children, young asylum seekers, and children from low-income families.

Lewisham Music is inspired by the impact that music can have on our sense of community and young people’s sense of individual and collective identity. We value the rich diversity of the area we serve, and are working hard to ensure that this diversity is reflected in our activities and workforce. We want young people from different backgrounds to see themselves reflected in the work of the charity, and to be able to engage with our work as confident individuals with their own unique identity. We believe that all musical styles are valuable and should be open to all young people, but are also careful to ensure that our work is authentic and the cultural context of different musical traditions is valued.

Everything Lewisham Music offers is subsidised using our funding from Arts Council England. We offer a range of additional subsidies and discounts for our community programmes, and also support young musicians in schools through bursary schemes delivered in partnership with London Music Fund and Awards for Young Musicians’ Furthering Talent programme. We strongly encourage all schools to utilise Pupil Premium money to further support pupils who may have the desire but not the means. We work hard to attract new investment into the community, and are constantly striving to balance the need to offer activities that are value for money and accessible, with our responsibilities for programme sustainability and organisational financial stability.

Education, music, the arts sector and indeed society in general are continually evolving. We strongly believe in the value of training, professional development and lifelong learning for all our staff. Lewisham Music is committed to our own organisational development, ensuring that our offer stays fresh, relevant and high-quality.

We believe that to achieve the best outcomes for the young people and communities we work with, we should constantly be reviewing, improving and expanding our offer in a way which is equitable and sustainable. We want the communities, parent/carers and young people who are beneficiaries of our work to have a say in the way the charity develops, hence we are building community consultation and youth voice into a number of our programmes.

PARTNERSHIPS

Our Sounds of Lewisham network is comprised of the following Hub partner organisations:

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

These partners have active programmes of work delivered together, and the network ensures that the offer in the geographical area is well connected and that we are signposting young people to each other’s activities. The group also allows us to look at wider strategic priorities such as fundraising, workforce development and borough-wide events and festivals.

The group is sometimes extended to include Horniman Museum and Gardens, Unit 137, Fairbeats, and Blackheath Halls (who we also work with directly).

We also work with other regional and national organisations including:

We have partnerships with the following local community organisations and networks to enable us to strengthen referral routes and understand local need:

Finally, we work closely with Music Education Hubs from across the country, and currently have active programmes being delivered in partnership with Lambeth, Greenwich, Southwark, Bexley and Bromley.

ACHIEVEMENTS AND PERFORMANCE 2021-2022

COVID-19’s IMPACT

Although 2020-2021 was by far the most challenging year we faced in terms of Covid-19 challenges, 2021-2022 also had significant challenges, especially in the first quarter. By September 2021 however, most restrictions had lifted, and there was a surge in demand from schools in the Autumn term. Our community programmes were also able to fully reopen, and numbers steadily recovered throughout the year. There were still challenges with staffing absences and other logistics, but these were small compared to the impact of full lockdowns on our ability to operate.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

In Spring 2021 it was confirmed that Lewisham Music was successful in our application for £149,730 from the Department for Culture, Media and Sport’s Culture Recovery Fund (Round 2). This significantly helped our recovery back to sustainable trading throughout the year, allowing us to make-up for a loss in traded income, invest in equipment, instruments and promotional activity, and top-up charity reserves to support longer-term financial resilience.

2021-2022 saw us emerge from the worst impacts of Covid-19 in a relatively strong position and enter a period of sustained growth. We were able to launch new programmes in schools and community settings which diversified our offer and reached new communities and young people, and we were finally able to launch our new premises at The Fellowship.

NOTABLE ACHIEVEMENTS & DEVELOPMENTS

Staffing & Governance

School offer

The Fellowship

Saturday Music Centre

Performances

Partnerships

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

Equity, Diversity and Inclusion

Sector research and conferences

Fundraising

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

FUTURE PLANS

Notable plans for 2022-2023 include:

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT RISK MANAGEMENT

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

OBJECTIVES AND ACTIVITIES

Public benefit

The charity trustees have complied with their duty to have due regard to the guidance on public benefit published by the Commission in exercising their powers or duties.

The public benefit is that young people develop their musical, social and cultural skills through participation in Lewisham Music's activities and those of its partners and schools. The charity's provision of musical education through access to guidance and support from expert practitioners, and to facilities, equipment and services, enhances the conditions of life of the young people involved. Young people's families also benefit through attendance at live events and other opportunities to celebrate their children's achievements.

FINANCIAL REVIEW

Financial position

The financial position of the charity at the year-end is set out on page 22.

Funding for Music Hubs from DfE will continue until August 2024. Current funding arrangements will be extended until August 2023 with funding arrangements put in place for September 2023 to August 2024. A new Music Hub programme as a result of a retendering process will be in place from the academic year September 2024. Lewisham Music is already working strategically to ensure the charity is best placed to continue its hub status and secure core funding for the next two financial years.

To ensure that our earned income grows we will monitor and develop our provision and opportunities for schools. We will also implement and review our fundraising strategy so that we can build on our successful grant portfolio into 2022-2023.

As explained in note 15 the charity's share of the deficit of the Local Government Pension Scheme at 31 March 2022 is included in the Balance Sheet in accordance with FRS 102. This deficit amounted to £32,000 (2021 £156,000).

Reserves Policy

Total reserves as at 31 March 2022 was £525,416 (£312,855 in 2021) of which £190,255 (£199,081 in 2021) represented unrestricted free funds and £138,788 (£20,250 in 2021) consisting of Cultural Recovery fund reserves reflation and restricted funds. The charity also held a designated instrument fund of £228,373 (£249,524 in 2021) and a reduced negative pension reserve relating to the LGPS of £32,000 (2021 £156,000).

The trustees have decided that it is prudent to carry a reserve of three months of salary, premises costs and contractual obligations and as at 31 March 2022, this amounted to £265,920 (£222,321 in 2021).

At 31 March 2022 the charity had free reserves (unrestricted reserves not tied up in fixed assets) of £190,255 (£199,081 in 2021).

Within the restricted funds of £138,788, a total of £73,732 from the Cultural Recovery Fund is available to reflate reserves in the event that the charity needed to pay its contractual obligations, the trustees would move this fund into free reserves. Overall the charity therefore practically meets it target reserves policy as set out above.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust and constitutes an incorporated charity.

Lewisham Music was incorporated on 17 October 2016. It is a Charitable Incorporated Organisation (CIO), registered number 1169721. The governing document is the charity’s constitution agreed on 12 September 2016.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

Trustees are appointed and recruited by the Board by advertisement and interview. Upon selection they are required to complete an enhanced DBS check. There are currently 9 trustees; a former local Member of Parliament, arts education professionals, a PR specialist, a Council Cabinet Member, and a business development specialist).

The Chief Executive is responsible for the day to day running of the organisation and line manages the Director of Business & Operations, Schools Music Leader, Director of Community Music, and Communications, Marketing and Programme Manager. There are four other office/management positions that are not directly line-managed by the CEO. There is currently 60 Music Tutors who deliver our programmes.

The Chief Executive takes decisions on a day-to-day basis with support from managers, and refers to the Chair where appropriate. The Director of Business & Operations is responsible for financial management and for the provision of finance reports to Trustees at quarterly meetings. Minutes are taken by an independent clerk and made available to the charity's principal funder, Arts Council England.

Strategic decisions are taken by the Board of Trustees with regard to the direction of the work carried out by Lewisham Music and the use of grants, earned income and charitable funds. Designated Board members and Committees have specific responsibilities for Safeguarding, HR and Finance. Trustees with designated roles report back to the Board before strategic decisions are taken.

Lewisham Music is a member of Music Mark, the national association supporting the work of music services, hubs, and music education practitioners. Arts Council England monitors the work of all music Hubs and releases funding quarterly subject to provision of grant monitoring.

In its role as a Music Education Hub, Lewisham Music collaborates with over 30 local and regional music and arts organisations in addition to all of the London Borough of Lewisham's maintained schools, free schools and academies.

Staff that transferred to Lewisham Music under TUPE currently retain Lewisham Council terms and conditions. Contracts, job descriptions and pay points for new staff are determined by the CEO in consultation with the Board of Trustees.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity number 1169721

Principal address

First Floor, Fellowship Inn Randlesdown Road Bellingham London SE6 3BT

REFERENCE AND ADMINISTRATIVE DETAILS

Auditors

Haines Watts Chartered Accountants & Statutory Auditors Old Station House Station Approach Newport Street Swindon Wiltshire SN1 3DU

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees 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"

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed require the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity 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 charity and to 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.

Approved by order of the board of trustees on Date
12/12/2022
and signed on its behalf by Joan Ruddock – Chair of
the Trustees		 Signature

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF LEWISHAM MUSIC

Opinion

We have audited the financial statements of Lewisham Music (the 'charity') for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows 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 under law and in the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion 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 Auditors' 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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF LEWISHAM MUSIC

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors 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 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.

We obtained an understanding of the legal and regulatory framework applicable to both the charity itself and the environment in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the UK GAAP, Charity SORP (FRS102), Charities Act 2016 and relevant tax legislation.

We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included:

Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

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.

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

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF LEWISHAM MUSIC

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.

Haines Watts

Chartered Accountants & Statutory Auditors

Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Old Station House Station Approach Newport Street Swindon Wiltshire SN1 3DU

Date 13 Dec 2022

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
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43

STATEMENT OF FINANCIAL ACTIVITIES 31 MARCH 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
Education
Investment income
3
Total
EXPENDITURE ON
Raising funds
5
Charitable activities
6
Education
Arts and culture (performances)
Recreation of social welfare
Total
NET INCOME/(EXPENDITURE)
Other recognised gains/(losses)
Actuarial gains/(losses) on defined benefit
schemes
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
7,222
501,786
17
509,025
17,995
299,933
190,689
50,385
559,002
(49,977)
144,000
94,023
292,605
386,628
Restricted
funds
£
732,334
-
-
732,334
-
613,796
-
-
613,796
118,538
-
118,538
20,250
138,788		 2022

Total
funds
£
739,556
501,786
17
1,241,359
17,995
913,729
190,689
50,385
1,172,798
68,561
144,000
212,561
312,855
525,416		 2021
Total
funds
£
650,306
240,984
109
891,399
26,959
653,281
171,933
75,484
927,657
(36,258)
(61,000)
(97,258)
410,113
312,855

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
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43

STATEMENT OF FINANCIAL POSITION 31 MARCH 2022

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
11
260,019
CURRENT ASSETS
Debtors
12
130,336
Cash at bank
166,440
296,776
CREDITORS
Amounts falling due within one year
13
(138,167)
NET CURRENT ASSETS
158,609
TOTAL ASSETS LESS CURRENT LIABILITIES
418,628
PROVISIONS FOR LIABILITIES
14
(32,000)
NET ASSETS
386,628
FUNDS
15
Unrestricted funds
Designated funds (instruments)
Pension liability
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
-
-
138,788
138,788
-
138,788
138,788
-
138,788		 2022
Total
funds
£
260,019
130,336
305,228
435,564
(138,167)
297,397
557,416
(32,000)
525,416
190,255
228,373
(32,000)
138,788
525,416		 2021
Total
funds
£
267,893
37,775
248,579
286,354
(85,392)
200,962
468,855
(156,000)
312,855
199,081
249,524
(156,000)
20,250
312,855
The financial statements were approved by the
Board of Trustees and authorised for issue on		 Date
12/12/2022
and were signed on its behalf by Joan Ruddock –
Chair of the Trustees		 Signature

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

43

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022
2022
Notes
£
Cash flows from operating activities
Cash generated from operations
1
96,401
Net cash provided by operating activities
96,401
Cash flows from investing activities
Purchase of tangible fixed assets
(53,195)
Interest received
17
Net cash used in investing activities
(53,178)
Change in cash and cash equivalents in
the reporting period
43,223
Cash and cash equivalents at the
beginning of the reporting period
248,579
Cash and cash equivalents at the end
of the reporting period
305,228		 2021
£
22,301
22,301
(22,518)
109
(22,409)
(108)
248,687
248,579

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NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022
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The notes form part of these financial statements 26

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

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

Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Interest received
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Difference between pension charge and cash contributions
Net cash provided by operations		 2022
£
68,561
61,069
(17)
(92,561)
39,349
20,000
96,401		 2021
£
(36,258)
62,871
(109)
10,351
(27,554)
13,000
22,301

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/21 Cash flow At 31/3/22
£ £ £
Net cash
Cash at bank 248,579 56,649 305,228
248,579 56,649 305,228
Total 248,579 56,649 305,228

The notes form part of these financial statements

26

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
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28

continued...

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, 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 Charities Act 2011. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the entity and is rounded to the nearest £.

Going concern

There are no material uncertainties about the charity's ability to continue.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

Allocation and apportionment of costs

Support costs are allocated between activities based on staff time. See note 7.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life. As follows:-

Office equipment – 20% straight line Instruments – 20% straight line IT equipment – 33.33% straight line

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

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.

continued...

28

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits

Retirement benefits to employees are provided by the Teachers’ Pension Scheme (‘TPS’) and the Local Government Pension Scheme (‘LGPS’). These are defined benefit schemes. For further details see note 16. The charity also operates a defined contribution pension scheme. Contributions payable are charged to the Statement of Financial Activities in the period to which they relate.

Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are recognised at their settlement amount.

2. DONATIONS AND LEGACIES

Donations
Grants
Grants received, included in the above, are as follows:
Arts Council England - Music Education Hub
Government grant - furlough income
Lewisham Council - COVID-19 small business grant
Arts Council England - Culture Recovery Fund
3.
INVESTMENT INCOME
Deposit account interest		 2022
£
173,744
565,812
739,556
2022
£
408,617
7,465
-
149,730
565,812
2022
£
17		 2021
£
26,645
623,661		 2021
£
26,645
623,661
650,306
2021
£
416,162
202,499
5,000
-
623,661
2021
£
109

continued...

29

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

4. INCOME FROM CHARITABLE ACTIVITIES

Activity
Education
5.
RAISING FUNDS
Raising donations and legacies
Support costs
6.
CHARITABLE ACTIVITIES COSTS
Education

Arts and culture (performances)

Recreation of social welfare

7.
SUPPORT COSTS
Education		 2022
£
501,786
2022
£
17,995
Activities
undertaken
directly
Support
costs

£
£

676,201
237,528
136,705
53,984
-
50,385
821,906
341,897		 2021
£
240,984
2021
£
26,959
Total
£
913,729
190,689
50,385
1,154,803
Governance
costs
£
10,916

continued...

30

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

7. SUPPORT COSTS - continued

Support cost's
Governance

Staff costs

Finance

Human Resources
Information
technology
Premises
General office

Travel
Equipment hire and
maintenance
Depreciation
Other professional
fees
Other		 Raising
funds
Education
Arts & culture
(performances)
Recreation
of social
welfare
£
£
£
£
5%
66%
15%
14%
466
6,153
1,398
1,305
11,234
148,286
33,701
31,455
132
1,740
396
369
231
3,049
693
647
336
4,435
1,008
941
1,166
15,392
3,498
3,265
799
10,522
2,398
2,238
47
623
142
132
360
4,757
1,081
1,009
2,818
37,199
8,454
7,891
421
5,558
1,263
1,179
(16)
(215)
(49)
(46)
17,995
237,528
53,984
50,385		 2022
£
9,322
224,676
2,637
4,620
6,719
23,321
15,987
944
7,208
56,362
8,422
(326)
359,890		 2021
£
12,738
398,057
3,128
6,815
6,771
22,920
15,400
976
1,776
59,938
10,806
(156)
539,171

Included in governance costs is £3,900 auditors remuneration and £1,800 for other services.

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.

continued...

31

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

9. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2022
£
715,342
43,914
139,507
898,763		 2021
£
602,984
36,531
121,396
760,911

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

2022
75
 2021
61

1 employee received emoluments in excess of £60,000.

The total amount of employee benefits received by key management personnel is £273,790 (2021 £223,043). The Trustees consider themselves, the CEO, Director of Business & Operations, and the Director of Community Music, Schools Music Leader and the Communications & Marketing Manager to comprise the management personnel.

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
213,223
Charitable activities
Education
240,984
Investment income
109
Total
454,316
EXPENDITURE ON
Raising funds
26,959
Charitable activities
Education
226,431
Arts and culture (performances)
171,933
Recreation of social welfare
75,484
Total
500,807
NET INCOME/(EXPENDITURE)
(46,491)		 Restricted
funds
£
437,083
-
-
437,083
-
426,850
-
-
426,850
10,233		 Total
funds
£
650,306
240,984
109
891,399
26,959
653,281
171,933
75,484
927,657
(36,258)

continued...

32

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

Transfers between funds
Other recognised gains/(losses)
Actuarial gains/(losses) on defined
benefit schemes
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
11.
TANGIBLE FIXED ASSETS
COST
At 1 April 2021
Additions
At 31 March 2022
DEPRECIATION
At 1 April 2021
Charge for year
Impairments
At 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021		 Plant and
machinery
£
450,058
27,001
477,059
200,534
5,227
42,925
248,686
228,373
249,524		 Unrestricted
funds
£
11,573
(61,000)
(95,918)
388,523
292,605
Fixtures
and
fittings
£
8,944
14,523
23,467
3,760
3,994
-
7,754
15,713
5,184		 Restricted
funds
£
(11,573)
-
(1,340)
21,590
20,250
Computer
equipment
£
30,451
11,671
42,122
17,266
8,923
-
26,189
15,933
13,185		 Total
funds
£
-
(61,000)
(97,258)
410,113
312,855
Totals
£
489,453
53,195
542,648
221,560
18,144
42,925
282,629
260,019
267,893

continued...

33

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

12.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Prepayments and accrued income
13.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Taxation and social security
Other creditors		 2022
£
123,360
6,976
130,336
2022
£
18,230
10,914
109,023
138,167		 2021
£
10,002
27,773
37,775
2021
£
12,904
9,062
63,426
85,392

Included in accruals and deferred income above is £10,215 of deferred income (2021 £5,610). This will all be released in the year to 31 March 2023.

14. PROVISIONS FOR LIABILITIES

PROVISIONS FOR LIABILITIES
2022 2021
£ £
Defined benefit pension
Liability (see note 16) 32,000 156,000

continued...

34

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

15. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Pension reserve
Designated fund - instruments
Restricted funds
Frank Doran Memorial Fund
London Music Fund (LMF)
Matthew Nichols Fund
Ironmongers Fund
Music Mark Innovation fund
Sonic Minds
Sony Social Justice grant
Amplifying Voices
Jack Petchey
Bursaries
Arts Council CRF
TOTAL FUNDS		 At 1/4/21
£
199,081
(156,000)
249,524
292,605
5,017
2,371
9,052
3,810
-
-
-
-
-
-
-
20,250
312,855		 Net
movement
in funds
£
(8,826)
124,000
(21,151)
94,023
-
1,481
(9,052)
(2,110)
2,360
13,155
11,046
14,584
1,189
12,153
73,732
118,538
212,561		 Transfers
between
funds
£
-
-
-
-
(5,017)
-
-
-
-
-
-
-
-
5,017
-
-
-		 At
31/3/22
£
190,255
(32,000)
228,373
386,628
-
3,852
-
1,700
2,360
13,155
11,046
14,584
1,189
17,170
73,732
138,788
525,416

continued...

35

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

15. MOVEMENT IN FUNDS - continued

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

Unrestricted funds
General fund
Pension reserve
Designated fund - instruments
Restricted funds
Arts Council Music Education Hub
Grant
London Music Fund (LMF)
Garden Memorial Fund
Matthew Nichols Fund
Ironmongers Fund
Music Mark Innovation fund
Sonic Minds
Sony Social Justice grant
Amplifying Voices
Jack Petchey
Awards For Young Musicians
Bursaries
Arts Council CRF
TOTAL FUNDS		 Incoming
resources
£
509,025
-
-
509,025
408,617
7,190
25
-
-
11,000
51,558
12,300
37,235
1,699
38,528
12,189
151,993
732,334
1,241,359
Resources

expended
£
(517,851)
(20,000)
(21,151)
(559,002)
(408,617)
(5,709)
(25)
(9,052)
(2,110)
(8,640)
(38,403)
(1,254)
(22,651)
(510)
(38,528)
(36)
(78,261)
(613,796)
(1,172,798)
Gains and

losses
£
-
144,000
-
144,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
144,000
Movement
in funds
£
(8,826)
124,000
(21,151)
94,023
-
1,481
-
(9,052)
(2,110)
2,360
13,155
11,046
14,584
1,189
-
12,153
73,732
118,538
212,561

continued...

36

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

15. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Pension reserve
Designated fund - instruments
Restricted funds
Frank Doran Memorial Fund
London Music Fund (LMF)
Lewisham Young Mayor's Fund
Matthew Nichols Fund
Ironmongers Fund
TOTAL FUNDS		 At 1/4/20
£
172,422
(82,000)
298,101
388,523
10,017
-
11,573
-
-
21,590
410,113		 Net
movement
in funds
£
15,086
(74,000)
(48,577)
(107,491)
(5,000)
2,371
-
9,052
3,810
10,233
(97,258)		 Transfers
between
funds
£
11,573
-
-
11,573
-
-
(11,573)
-
-
(11,573)
-		 At
31/3/21
£
199,081
(156,000)
249,524
292,605
5,017
2,371
-
9,052
3,810
20,250
312,855

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Pension reserve
Designated fund - instruments
Restricted funds
Arts Council Music Education Hub
Grant
Frank Doran Memorial Fund
London Music Fund (LMF)
Matthew Nichols Fund
Ironmongers Fund
TOTAL FUNDS		 Incoming
resources
£
454,316
-
-
454,316
416,162
-
7,111
10,000
3,810
437,083
891,399		 Resources
expended
£
(439,230)
(13,000)
(48,577)
(500,807)
(416,162)
(5,000)
(4,740)
(948)
-
(426,850)
(927,657)		 Gains and
Movement
losses
in funds
£
£
-
15,086
(61,000)
(74,000)
-
(48,577)
(61,000)
(107,491)
-
-
-
(5,000)
-
2,371
-
9,052
-
3,810
-
10,233
(61,000)
(97,258)

continued...

37

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

15. MOVEMENT IN FUNDS - continued

Arts Council England (ACE)

Arts Council England (ACE) provides Music Education Hub grant funding from the Department for Education (DfE) with the aim to support 118 Music Hubs across the UK. Lewisham Music receives core funding from ACE to be the music education hub lead for the London Borough of Lewisham. Funding is used to support the National Plan for Music Education (NPME) to deliver its core and extension roles. Funds provide first access learning and progression opportunities to children & young people through front line delivery. The funding also supports back-office costs in managing the charity's governance and development.

Frank Doran Memorial Fund

The Frank Doran Memorial Fund was set up by his wife Joan Ruddock, in memory of Frank, the charity's original chair and co-founder who died in October 2017. The donations received in memory will be used to provide a legacy in Frank's name whilst honouring his vision, sense of purpose, kindness, commitment and passion for the importance of music in young people's lives.

London Music Fund (LMF)

London Music Fund is a funding body with the Mayor of London as its Patron. Income is from individual philanthropy, corporate support and trusts and foundations. Its vision is that children who demonstrate significant musical ability, enthusiasm and commitment to learning an instrument are given the opportunity to develop their potential.

Funding is used to enhance musical opportunities and experiences for a current cohort of 11 scholars who receive a period of 4 years funding. Nominated and chosen by their music teachers and Lewisham Music. The fund is dedicated to those children who are on free school meals and families that face financial hardship.

Lewisham Young Mayor's Fund

Lewisham appoints a young mayor annually from the local area and we were kindly earmarked £16,000 in 2021 for the technical set up of the music studio and band rooms at the new premises, with a focus on providing facilities for young people. The funds have been used to ensure there is a strong offer at the Fellowship by equipping rooms with the latest music technology and live band equipment. We also plan to utilise the space to engage more widely with the local community. Our plan is to offer funded projects as well as creating hire opportunities to generate revenue using this equipment. This will allow us to work across contemporary genres, rap/spoken word, music production, song writing, creative/collaborative and in multi-arts projects.

Garden Memorial Fund

The Garden Memorial Fund was set up by Joan Ruddock, in memory of Frank Doran. The donations received in memory have been used to create a garden space on the roof of our premises with the plan that it will be enjoyed by staff and those in the community that use the building.

Ironmongers Fund

The Ironmongers' Company have funded the Sounds of The Next Generation project which will be a new cross-genre creative music collective based at the charity's premises, the Fellowship Inn, in Bellingham. The project will bring together young people from a wide range of social and musical backgrounds to write new music, empowering them to drive the creative process and musical direction.

continued...

38

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

15. MOVEMENT IN FUNDS - continued

Music Mark Innovation Fund

In summer 2020 a number of London music education hubs formed a Diversity, Representation and Action working group. On the group’s behalf, Lewisham Music successfully bid for funding from the Hub Innovation Fund (Department for Education/Music Mark) which allowed 12 music education hubs to recruit and train a network of Tutor Diversity Ambassadors (TDAs) across London. The TDA role is designed to create a constructive bridge between the workforce and hub management; advocate for and support all staff (especially those from underrepresented groups); engage colleagues (including management) with discussions around EDI; support a caring and inclusive organisational culture (including with regards to mental health and welfare); change perceptions about the organisation and sector; and create EDI-focused networks.

Amplifying Voices (Youth Music)

Lewisham Music partnered with Lambeth Music Service and Royal Greenwich Music Service to work alongside sector-leading equality charity ‘Brap’ for the ‘Amplifying Voices’ project, funded by Youth Music. The programme combines connected strands of research, workforce training, consultation, youth voice and music-making to address issues of underrepresentation within music education, leading to genuine, lasting organisational change.

Sonic Minds (Youth Music)

Sonic Minds is a two-year music and mental health programme delivered by Lewisham Music and funded by Youth Music. The programme supports hundreds of care experienced and displaced young people across Bromley, Bexley and Lewisham through collaborative song writing, drumming and music production, allowing them to share their stories, express themselves and celebrate their identity. The programme culminates with the creation of an interactive sound sculpture that will tour publicly across South London, advocating for the connection between music and mental health. The feedback and evaluation framework for Sonic Minds has been developed in partnership with Sound Connections.

Awards For Young Musicians

Awards for Young Musicians (AYM) is a UK wide charity founded in 1998 which enables talented young people from low-income families to fulfil their potential. Lewisham Music is a partner on the Furthering Talent programme, which annually supports 30 young musicians from Lewisham with free music tuition, group music-making experiences, and additional bursaries to enhance their musical journeys. The funding also supports the freelance Furthering Talent Producer role.

Sony Music Group’s Global Social Justice Fund

This fund has been granted to further enhance the work of the Awards for Young Musicians programme. Money from Sony Music Group’s ‘GSJ’ fund will transform our Furthering Talent programme by introducing a vibrant series of collaborative ‘Get Together’ events and a package of ‘personal bursaries’ to remove barriers and further each child’s progression. The bursaries will assist, for example, with the purchase of an instrument; the purchase of a laptop to avoid digital exclusion; access to recording facilities; covering travel expenses and/or additional access costs for students with additional needs.

Jack Petchey

This fund is for the purposes of the Jack Petchey Achievement Award that participants across our Community Music programme can access. This youth led award programme is used to recognise young people’s development, i.e. a young person who has faced a challenge, someone who has pushed themselves outside of their comfort zone, or an opportunity to recognise a young person’s commitment to supporting their peers.

continued...

39

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

15. MOVEMENT IN FUNDS - continued

Bursaries

Lewisham Music is ambitious about making music education accessible to all. Our bursary fund allows us to subsidise music tuition and group music-making for children and young people from low-income families. Funds our raised from cash donations at performances, donations made via our website, our Goodbox device, payroll giving, Amazon Smile and Easy Fundraising. The scheme also received matched funding from the Big Give Campaign via the Childhood Trust and the Barnett & Sylvia Shine Charitable Trust. The remaining funds of £5,017 in the Frank Doran Memorial Fund have also been transferred to the bursary scheme.

Arts Council Funding - Culture Recovery Fund

The Department for Digital, Culture, Media and Sport announced a £1.57 billion package to protect the UK’s culture and heritage sectors from the economic impacts of Covid-19 in spring 2021. Lewisham Music secured funding via Arts Council England to transition back to a viable and sustainable operating model during the period of April-June 2021. The fund also allowed us to reflate the charity’s reserves.

16. EMPLOYEE BENEFIT OBLIGATIONS

The charity's employees belong to two principal pension schemes: the Teachers' Pension Scheme England and Wales (TPS) for teaching staff, and the closed Local Government Pension Scheme (LGPS) for non-teaching staff. A third was introduced in 2019. The People's Pension Scheme, also for nonteaching staff. TPS and LGPS are defined-benefit schemes.

The latest actuarial valuation of the TPS was 31 March 2016 and of the LGPS 31 March 2019.

Contributions amounting to £13,426 (2021 £11,620) were payable to the schemes at 31 March 2022 and are included within creditors.

Teachers' Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pension Scheme Regulations 2014. Membership is automatic for full-time teachers in academies. All teachers have the option to opt out of the TPS following enrolment.

The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary - these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers' Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS every four years in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors.

The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consultation are:

continued...

40

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

16. EMPLOYEE BENEFIT OBLIGATIONS - continued

The next valuation result is due to be implemented from 1 April 2023.

The pension costs paid to TPS in the period amounted to £131,394 (2021 £117,784) £33,094 employees’ contributions and £98,297 employer contributions (2021 £28,988 employee contributions and £88,795 employer contributions).

A copy of the valuation report and supporting documentation is on the Teachers' Pensions website.

Under the definitions set out in FRS 102, the TPS is a multi-employer pension scheme. The trust has accounted for its contributions to the scheme as if it were a defined contribution scheme. The trust has set out above the information available on the scheme.

Local Government Pension Scheme (LGPS)

The LGPS is a funded defined-benefit scheme, with the assets held in separate trustee-administered funds. The total contribution made for the year ended 31 March 2022 was £15,188, of which employee’s contributions totalled £1,510 and employer's contributions totalled £13,678 (2021 £14,778, of which employee’s contributions totalled £1,485.33 and employer's contributions totalled £13,293). The agreed contribution rates for future years are 33.2% for employers and 5.5% to 9.9% (depending on salary and section) for employees.

Under the terms of the Transfer Agreement dated 30 March 2017, the Administering Authority (that administers the LGPS on behalf of the Authority, Lewisham Council) does not require the Admission Body (Lewisham Music) to put in place any indemnity or bond in respect of the eligible employees. Lewisham Council has agreed to provide the Administering Authority with an LGPS Guarantee in a form acceptable to the Administering Authority and the Admission Body in respect of the Admission Body's obligations to the Administering Authority and will take any other steps required by the Administering Authority to ensure that an indemnity or bond is not required for the duration of the Admission Body's participation in the LGPS Fund.

The Council shall indemnify the Charity from and against all costs, expenses or contributions arising from any pension payable as a result of the dismissal of any of the Eligible Employees on grounds of redundancy or efficiency of the service and any pensions payable on grounds of ill-health, on termination of the Admission Agreement or on the Charity no longer having any Eligible Employees actively contributing to the Fund. The Council shall also indemnify the Charity for any costs, expenses or liabilities to the Fund in respect of the Eligible Employees (including for the avoidance of doubt any deferred or pensioner members of the Fund) arising on termination of the Admission Agreement or on the Charity no longer having any Eligible Employees actively contributing to the Fund. Any payment due by the Charity shall be refunded by Lewisham Council upon written notice within 10 business days.

continued...

41

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

The total cost recognised in the period was as follows:

2022
£000
Current service cost
(17)
Past service cost
-
Plan introductions, changes, curtailments and settlements
-
Net interest income / expense
()
Recognised in profit or loss
(20)
Recognised in other comprehensive income
120
Total cost recognised
124
Amounts recognised in the balance sheet were as follows:
2022
£000
Present value of funded obligations
(1,080)
Fair value of plan assets
1,048
(32)
Changes in the present value of the defined benefit obligations were as follows:
2022
£000
Opening defined benefit obligation
1,132
Current service costs
17
Past service costs
-
Interest expense
22
Actuarial (gains) / losses
(60)
Contributions by scheme participants
2
Benefits paid
(Gains) / losses on curtailment
(33)
-
Closing defined benefit obligation
1,080		 2021
£000
(11)
-
-
(2)
(13)
61
74
2021
£000
(1,132)
976
(156)
2021
£000
934
11
-
21
208
1
(33)
-
1,132

42

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

Changes in the fair value of the pension plan assets were as follows:

Opening plan assets
Interest income
Actual return on plan assets (excluding interest income)
Assets distributed on settlement
Contributions by employer
Contributions by scheme participants
Benefits paid
Closing plan assets		 2022
£000
976
19
70
14
2
(33)
1,048		 2021
£000
842
19
134
-
13
1
(33)
976

The amount that each major class of pension plan assets constitutes of the fair value of the total plan assets was as follows:

Equity instruments
Debt instruments (bonds)
Property
Cash
The principal actuarial assumptions used were as follows:
Discount rate
Expected rates of salary increases
Expected rates of pension increases
The mortality assumptions used for longevity (in years) on
retirement at age 65 are:
Current pensioners
Future pensioners		 2022
%
64
22
9
5
100
2022
2.70%
3.90%
3.20%
Males
21.2 years

22.5 years
 2021
%
62
24
7
7
100
2021
2.0%
3.55%
2.85%
Females
23.8 years
25.5 years

Sensitivity analysis

Change in assumptions at 31 March 2022: Approximate %
increase to Defined
Benefit Obligation		 Approximate
monetary amount
£000
0.1% decrease in Real Discount Rate 2% 18
0.1% increase in the SalaryIncrease rate 0% 1
1year increase in member life expectancy 4% 43
0.1% increase in the Pension Increase Rate(CPI) 2% 17

43

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

16. EMPLOYEE BENEFIT OBLIGATIONS - continued

B&CE Holdings (The People's Pension Scheme)

The People's Pension is a multi-employer, defined contribution occupational pension scheme that has master trust status. It's run by B&CE Holdings, a not-for-profit organisation. With no shareholders, any surpluses made by B&CE are used for the benefit of members.

Membership at Lewisham Music is for non-teaching staff employed since April 2017. Employee contributions of up to 6% can be paid into the scheme which are matched by Lewisham Music. The total contribution made for the year ended 31 March 2022 was £13,556 (2021 £11,545), of which employee contributions totalled £6,025 and employer's contributions totalled £7,531.

17. RELATED PARTY DISCLOSURES

There were no related party transactions for the year.

44