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2023-03-31-accounts

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their report with the financial statements of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

The financial statements cover the period from 1 April 2022 to 31 March 2023.

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)
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 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 2023

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

2022-2023 was a period of steady growth for Lewisham Music. The autumn term of 2022 saw us delivering more programmes in schools than ever, with 383 hours delivered every week. We worked with 72 out of 85 Lewisham schools throughout the year, with a notable increase in uptake of our Whole Class Ensemble Teaching programmes and our teacher advice and support offer. New partnerships with Live Music Now and SongEasel also allowed us to bring exciting live music experiences to local schools.

Our community programme also grew, with 187 pupils attending our Saturday Music Centre every week. Uptake of programmes at The Fellowship remained strong, and included a new weekly Studio Sessions offer led by professional musical artists. We also relaunched the Junior Orchestra holiday course for beginner and intermediate instrumental learners.

We saw a significant increase in demand for programmes related to skills and employment in the music and media industries for 18-30 year olds. This area of work was nurtured through new partnerships with Sydenham Arts and Independent Venue Community. We also started an exciting place-based programme, ‘ Lewisham Legends ’ to mark the centenary of the Bellingham estate in 2023. Finally, our programme ‘ Sonic Minds ’ won the ‘ Try Something New Award ’ at the 2022 London Youth Awards, and we were also awarded London Youth’s Bronze Quality Mark.

We developed our fundraising throughout the year, securing additional support from BBC Children in Need, Goldsmiths University, London Music Fund, Greater London Authority, Arts Council England, and several trusts and foundations. However, 2022-2023 was also the year when the impact of year-on-year cuts to our core funding from Department for Education/Arts Council England (9.5% less in cash terms in 2022-2023 compared to 2017-2018) was exacerbated by huge inflationary pressures. The impact was significant, and we ended the year in a deficit position. We also saw a deepening of the impact of the cost-of-living crisis on local schools and families, with demand for financial bursaries increasing dramatically across the year.

Looking to 2023-2024 and beyond, we will be refocusing our work around the ambitious new National Plan for Music Education . It’s emphasis on supporting progression for all young musicians- regardless of their background and circumstances- is something that Lewisham Music particularly welcomes. We are especially proud of our work to reach all communities in the borough, as well as our focused support for Children in Care, children from low-income households, and children from asylum-seeking families.

While Lewisham Music faces a challenging financial climate, we are delighted to be reaching so many young people in our community, contributing to their academic, emotional, social, and creative development using the power of music. I am pleased to be working with such a dedicated CEO and staff team, and 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 2023

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 are increasingly attracting funding to work with 18-30 year olds, and have an ambition to attract funding so that we can do more work with Early Years and Foundation age children (0–4-year-olds).

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 Lewisham Youth Concert Band 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.

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. We ensure that we have a strategic view of what is happening across the borough inside and outside of schools.

Activities

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

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

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.

Our vision and values

A musical charity…

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; their 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.

An inclusive charity…

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, financial barriers 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.

An equitable charity…

Everything Lewisham Music offers is subsidised using our core 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 strive to balance the need to offer activities that are value for money and accessible, with our responsibilities for programme and organisational sustainability.

A learning charity…

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.

A listening charity…

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 our programmes.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Partnerships

Partner is at the heart of our work and we are lucky to benefit from relationships with a diverse range of organisations.

Local partners

Regional and national partners

• ABRSM

Referral and community partners

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

- More information about all our partners can be found here: www.lewishammusic.org/our partners

Achievements and performance 2022-2023

Awards

School offer

Community programmes

Equity, Diversity and Inclusion

Youth Voice/Young Producers

Creative careers

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Awards

Future plans

Notable plans for 2023-2024 include:

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Structure, governance and management risk management

LEWISHAM MUSIC- RISK REGISTER (updated December 2023)

POTENTIAL RISK POTENTIAL
IMPACT
(1-5)		 LIKELIHOOD
(1-5)		 OVERALL
RISK SCORE
(IMPACT x
LIKELIHOO
D) +
IMPACT		 PREVENTATIVE ACTIONS ACTIONS IF RISK OCCURS RESPONSIBILITY MONITORING REVIEW DATE/
FREQUENCY
RISK CONFIRMED: DfE has cut Teachers
Pension Scheme funding for independent
Music Hubs from September 2014.This
will cause an annual £41k hole in our
budget.		 4 5 24 -Campaign for DfE to reverse this
damaging decision.
-Look for additional core
funding/sponsorship.
-Explore other pension options.
- Adjust/cut services/staffing.		 CR CR/SF/Board Monthly-
TOP
PRIORITY
RISK CONFIRMED: Teachers Pensions
employer contributions are increasing by
5% (from 23.68% to 28.68%) in April
2024. This will be funded for schools and
Local Authorities but not independent
Music Hubs. This will cause an annual
hole in our budget of at least 23k per
year.		 4 5 24 -Campaign for DfE to reverse this
damaging decision.
-Look for additional core
funding/sponsorship.
-Explore other pension options.
- Adjust/cut services/staffing.		 CR CR/SF/Board Monthly-
TOP
PRIORITY
RISK CONFIRMED: Hours of delivery in
schools reduce due to school budget
challenges.		 3 5 18 - Continue to refine comms and
promotional strategy to engage schools.
-Continue to build relationships with
schools.		 -Activity in schools just about recovers
cost (not including admin/backroom
costs). Therefore, there is a limited
financial risk as expenditure should
drop roughly in-line with income.
-The main impact would be regarding
our delivery output and therefore our
impact on the young people of
Lewisham,and how ACE/DfE view us.		 CR/SP CR/SP/Board Quarterly
DfE Hub grant to Lewisham continues to
go down in cash and real terms.		 3 5 18 -Campaign for uplift in funding attached
to new National Plan for Music
Education.
-Seek support of private donors,
corporations, Trusts/Foundations
towards core costs.
-Identify cost savings e.g. in instrument
storage.		 -Same as preventative actions- this is a
long-term problem rather than us
suddenly facing a ‘cliff-edge’.		 CR CR/SF/Board Annually

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Staff costs and structures transferred
under TUPE not affordable for the new
charity		 4 3 16 -Identify new income and funding
streams, especially private donors,
corporations, Trusts/Foundations
-Careful financial modelling and
monitoring to improve fiscal resilience.
-Continue to encourage TUPE staff to
move to LMpayscales.		 -Research financial and legal options for
reducing costs and re-structuring staff
contracts.
-Consult workforce and unions.
-Research alternative pension options.
- Adjust/reduce services/staffing.		 CR/SF CR/SF/Board Quarterly
The new Community Interest Company
jointly owned by Lewisham Music,
Bromley Youth Music Trust, Lambeth
Council, Royal Greenwich Council,
Southwark Council and South-East
London Academies Trust is not appointed
the new Hub Lead Partner Organisation
in April 2024 (for September 2024).		 5 2 15 -Possibility that Lewisham Music will be
commissioned to deliver programmes
by a new lead partner and/or some LM
staff are TUPE-ed into employment by
this new organisation.
-Some redundancies -especially in
management- are likely.
-If Lewisham Music is not commissioned
or staff are not TUPE-ed, Lewisham
Music will have to close as we cannot
operate without this grant.		 CR CR/Board April 2024
Cost-of-living crisis means that
parents/carers can no longer afford
musical tuition		 3 4 15 -Continue to encourage schools to use
Pupil Premium Grant and curriculum
budget to subsidise tuition.
-Continue fundraising to support
bursaryscheme.		 -The need to make cuts would depend
on the severity of the drop.		 CR/SF/SP CR/SP/SF/Board Termly
Hire of our premises at The Fellowship
Inn no longer financially viable		 3 2 9 -Maintain and build on positive
relationship with Phoenix Community
Housing.
-Ensure 10-15% of new funding goes
towards core running costs, where
possible.
- Identify new income and funding
streams and potentially private,
corporate or Trust/Foundation
sponsorship to support running costs.		 - Find new office premises and continue
to rely on school premises for out-of-
school activity.
- The main impact would be
reputational.
- Ask Phoenix Community Housing for a
significant rent reduction/permanent
rent holiday.		 CR/EC/KS CR/SF/Board Quarterly

KEY

Red - major risks that score 20 or more - moderate risks that score between 10 and 20 Green - minor risks scoring 10 or less

CR- Charly Richardson, Chief Executive SF- Simon Francis, Director of Business & Operations SP- Sarah Plummer, Schools Music Lead KS- Keith Sykes, Director of Community Programmes

ACE- Arts Council England

DfE- Department for Education

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

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. 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 our Hub status and secure this core funding.

We will also continue to develop our fundraising strategy so that we can build on our successful grant portfolio into 2023-2024. We are always reviewing budgets to determine if there are any efficiencies or savings to be made. As explained in note 17 the charity's share of any surplus or deficit of the Local Government Pension Scheme at 31 March 2023 is required to be included in the Balance Sheet in accordance with FRS 102. The surplus at 31 March 2023 amounted to £108,000 (2022 deficit £32,000).

Reserves Policy

Total reserves as at 31 March 2023 was £623,576 (£525,416 in 2022) of which £223,872 (£190,255 in 2022) represented unrestricted free funds and £65,587 (£138,788 in 2022) restricted funds. The charity also held a designated instrument fund of £226,117 (£228,373 in 2022) and a pension reserve relating to the LGPS of £108,000 (2022 £32,000 negative reserve).

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 2023, this amounted to £265,663 (£265,920 in 2022).

At 31 March 2023 the charity had free reserves (unrestricted reserves not tied up in fixed assets) of £223,872 (£190,255 in 2022).

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.

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 including a former local Member of Parliament, arts education professionals, a PR specialist, and a business development specialist).

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Staffing and responsibilities

During 2022-2023, Lewisham Music had 10 office/administration/management staff (a mix of part-time and full-time positions), 4 paid Young Producers, and 1 freelance project producer. We had 54 Music Tutors who delivered activities on a PAYE, variable-hours basis.

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, Vocal Leader, Director of Community Programmes, and Communications & Marketing Manager. There are five other office/management positions that are not directly linemanaged by the CEO.

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 regarding 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, Premises and Finance, PR and Fundraising. 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 Education Hubs and releases funding quarterly subject to provision of grant monitoring.

In its role as a Music Education Hub, Lewisham Music collaborates with 40 local and regional music and arts organisations, 14 local referral and community partner organisations and 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 Chief Executive in consultation with the Board of Trustees.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

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 2023

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
December 6th2023
and signed on its behalf
by Joan Ruddock – Chair
of the Trustees		 Signature

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

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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 2023 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

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

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STATEMENT OF FINANCIAL ACTIVITIES 31 MARCH 2023

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
4
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)
Transfers between funds
16
Other recognised gains/(losses)
Actuarial gains on defined benefit schemes
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
9,571
613,450
427
623,448
16,052
436,086
188,651
44,946
685,735
(62,287)
73,648
160,000
171,361
386,628
557,989		 Restricted
funds
£
536,587
19,699
-
556,286
-
555,839
-
-
555,839
447
(73,648)
-
(73,201)
138,788
65,587		 2023
Total
funds
£
546,158
633,149
427
1,179,734
16,052
991,925
188,651
44,946
1,241,574
(61,840)
-
160,000
98,160
525,416
623,576		 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

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

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STATEMENT OF FINANCIAL POSITION 31 MARCH 2023

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
11
248,681
CURRENT ASSETS
Debtors
12
88,413
Cash at bank
271,940
360,353
CREDITORS
Amounts falling due within one year
13
(159,045)
NET CURRENT ASSETS
201,308
TOTAL ASSETS LESS CURRENT LIABILITIES
449,989
PROVISIONS FOR LIABILITIES
15
108,000
NET ASSETS
557,989
FUNDS
16
Unrestricted funds
Designated funds (instruments)
Pension reserve
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
-
-
65,587
65,587
-
65,587
65,587
-
65,587		 2023
Total
funds
£
248,681
88,413
337,527
425,940
(159,045)
266,895
515,576
108,000
623,576
223,872
226,117
108,000
65,587
623,576		 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

The financial statements were approved by the Date Board of Trustees and authorised for issue on December 6[th] 2023 and were signed on its behalf by Joan Ruddock – Signature Chair of the Trustees

22

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

23

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning
of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2023
£
42,680
42,680
(10,808)
427
(10,381)
32,299
305,228
337,527		 2022
£
109,827
109,827
(53,195)
17
(53,178)
56,649
248,579
305,228

24

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

The notes form part of these financial statements

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NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

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

Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Interest received
Decrease/(increase) in debtors
Increase in creditors
Difference between pension charge and cash contributions
Net cash provided by operations		 2023
£
(61,840)
22,146
(427)
41,923
20,878
20,000
42,680		 2022
£
68,561
61,069
(17)
(92,561)
52,775
20,000
109,827

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/22 Cash flow At 31/3/23
£ £ £
Net cash
Cash at bank 305,228 32,299 337,527
305,228 32,299 337,527
Total 305,228 32,299 337,527

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The notes form part of these financial statements
The notes form part of these financial statements
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[26 ]

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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continued...

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 2023

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
Arts Council England - Culture Recovery Fund
3.
INVESTMENT INCOME
Deposit account interest		 2023
£
145,795
400,363
546,158
2023
£
400,363
-
-
400,363
2023
£
427		 2022
£
173,744
565,812		 2022
£
173,744
565,812
739,556
2022
£
408,617
7,465
149,730
565,812
2022
£
17

continued...

29

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

4. INCOME FROM CHARITABLE ACTIVITIES

4.
INCOME FROM CHARITABLE ACTIVITIES
2023 2022
Activity £ £
Education 633,149 501,786

5. RAISING FUNDS

Raising donations and legacies

Raising donations and legacies
2023 2022
£ £
Support costs 16,052 17,995

6. CHARITABLE ACTIVITIES COSTS

Education
Arts and culture (performances)
Recreation of social welfare		 Activities
undertaken
directly
£
780,039
140,495
-
920,564		 Support
costs
£
211,887
48,156
44,946
304,959		 Total
£
991,926
188,651
44,946
1,225,523

7. SUPPORT COSTS

Education

Governance costs £ 12,437

continued...

30

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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
£
5%
619
10,195
117
330
379
1,497
745
95
637
660
622
157
16,052		 Education
£
66%
8,169
134,574
1,540
4,354
5,000
19,762
9,837
1,254
8,406
8,712
8,210
2,069
211,887		 Arts & culture
(performances)
£
15%
1,857
30,585
350
990
1,136
4,491
2,236
285
1,910
1,980
1,866
470
48,156		 Recreation
of social
welfare
£
14%
1,733
28,546
327
924
1,061
4,192
2,087
266
1,783
1,848
1,741
439
44,946		 2023
£

12,736

203,900
2,333

6,597

7,576
29,942
14,905
1,901

12,736
13,201
12,439
3,136

321,042		 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

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.

continued...

31

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

9. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
One employee received emoluments between £60,000-£69,999 (2022 same)		 2023
£
789,346
55,016
161,268
1,005,630
2023
81		 2022
£
715,342
43,914
139,507
898,763
2022
75

The total amount of employee benefits received by key management personnel is £221,069 (2022 £273,790). The Trustees consider themselves, the CEO, Director of Business and Operations, the Director of Community Music, Schools Music leader and the Communications & Marketing Manager to comprise the key management personnel.

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Education
Investment income
Total
EXPENDITURE ON
Raising funds
Charitable activities
Education
Arts and culture (performances)
Recreation of social welfare
Total
NET INCOME/(EXPENDITURE)
Other recognised gains/(losses)
Actuarial gains 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		 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

continued...

32

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

11. TANGIBLE FIXED ASSETS

Instruments
£
COST
At 1 April 2022
477,059
Additions
5,323
At 31 March 2023
482,382
DEPRECIATION
At 1 April 2022
248,686
Charge for year
7,579
At 31 March 2023
256,265
NET BOOK VALUE
At 31 March 2023
226,117
At 31 March 2022
228,373
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		 Fixtures
and
fittings
£
23,467
853
24,320
7,754
4,415
12,169
12,151
15,713		 Computer
equipment
£
42,122
4,632
46,754
26,189
10,152
36,341
10,413
15,933
2023
£
82,558
5,855
88,413
2023
£
16,070
13,244
129,731
159,045		 Totals
£
542,648
10,808
553,456
282,629
22,146
304,775
248,681
260,019
2022
£
123,360
6,976
130,336
2022
£
18,230
10,914
109,023
138,167

Included in accruals and deferred income above is £24,500 of deferred income (2022 £10,215. This will all be released in the year to 31 March 2024.

14. LEASING AGREEMENTS

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

Within one year
Between one and five years		 2023
£
9,600
3,200
12,800		 2022
£
9,600
12,800
22,400

continued...

33

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

15. PROVISIONS FOR LIABILITIES

Defined benefit pension
liability
16.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Pension reserve
Designated fund - instruments
Restricted funds
London Music Fund (LMF)
Garden Memorial Fund
IronMongers Fund
Music Mark Innovation fund
Sonic Minds
Sony Social Justice grant
Amplifying Voices
Jack Petchey
Bursaries
Arts Council CRF
IDE project
Kusuma Trust
Lewisham Legends
London Music Fund (Sounds of the Next
Generation)
Sir William Boremans' Foundation
Sydenham Arts
TOTAL FUNDS		 At 1/4/22
£
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		 Net
movement
in funds
£
(40,031)
140,000
(2,256)
97,713
3,648
(84)
(1,700)
(2,360)
11,623
(3,031)
(10,460)
10
(18,319)
-
1,950
4,000
1,000
7,500
6,000
670
447
98,160		 2023
£
(108,000)
Transfers
between
funds
£
73,648
-
-
73,648
-
84
-
-
-
-
-
-
6,000
(73,732)
-
-
-
-
(6,000)
-
(73,648)
-		 2022
£
32,000
At
31/3/23
£
223,872
108,000
226,117
557,989
7,500
-
-
-
24,778
8,015
4,124
1,199
4,851
-
1,950
4,000
1,000
7,500
-
670
65,587
623,576

continued...

34

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

16. 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
IronMongers Fund
Music Mark Innovation fund
Sonic Minds
Sony Social Justice grant
Amplifying Voices
Jack Petchey
Awards For Young Musicians
Bursaries
IDE project
Kusuma Trust
Lewisham Legends
Lewisham's Big Conversation
London Music Fund (Sounds of the Next
Generation)
Merchant Taylor Trust
Sir William Boremans' Foundation
Sydenham Arts
TOTAL FUNDS		 Incoming
resources
£
623,448
-
-
623,448
400,363
9,034
-
-
1,200
49,712
-
4,137
1,800
33,654
19,135
2,000
6,000
1,000
9,001
7,500
4,900
6,000
850
556,286
1,179,734		 Resources
expended
£
(663,479)
(20,000)
(2,256)
(685,735)
(400,363)
(5,386)
(84)
(1,700)
(3,560)
(38,089)
(3,031)
(14,597)
(1,790)
(33,654)
(37,454)
(50)
(2,000)
-
(9,001)
-
(4,900)
-
(180)
(555,839)
(1,241,574)		 Gains and
losses
£
-
160,000
160,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
160,000		 Movement
in funds
£
(40,031)
140,000
(2,256)
97,713
-
3,648
(84)
(1,700)
(2,360)
11,623
(3,031)
(10,460)
10
-
(18,319)
1,950
4,000
1,000
-
7,500
-
6,000
670
447
98,160

continued...

35

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

16. 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)
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
£
12,948
124,000
(42,925)
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
£
212,029
(32,000)
206,599
386,628
-
3,852
-
1,700
2,360
13,155
11,046
14,584
1,189
17,170
73,732
138,788
525,416

36

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

16. MOVEMENT IN FUNDS - continued

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
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
£
(496,077)
(20,000)
(42,925)
(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
£
12,948
124,000
(42,925)
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...

37

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

16. 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 121 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 sadly passed away in October 2017. The donations received in memory were 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 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. The donations received 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 crossgenre creative music collective based at the charity's premises, The Fellowship & Star, 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.

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.

continued...

38

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

16. MOVEMENT IN FUNDS - continued

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.

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.

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.

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.

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.

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 are 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.

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.

IDEA programme : Lewisham Music are continuing our EDI development journey alongside Youth Music through the IDEA programme/framework.

The programme has included a range of training, practice sharing networks, mentoring and a micro grant, which we used to recruit and onboard two new trustees aged 18-30.

39

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

16. MOVEMENT IN FUNDS - continued

Kusuma Trust

Trustees of the trust awarded £10,000 from their Christmas Grant. The funding was allocated towards the following areas Animate Orchestra, a collaboration project with Live Music Now in Lewisham special schools, bursaries and a contribution toward core staffing.

Lewisham Legends

A two-year place-based music programme funded by Arts Council England (£49,000). Working with resident-led housing association Phoenix, we will co-create spaces for residents to tell their stories of community - Recorded through a podcast series. Shaped by local children, young people (CYP) a two-year programme of regular music making will run at 'The Fellowship Inn'. Creative opportunities will include regular programmes of music production, lyricism and singing. Complimented by intensive songwriting projects that will unite residents. All activity will be co-created, giving residents opportunities to connect, respond and reimagine local people's stories. New music will be performed in repurposed local civic spaces celebrating the Bellingham (2023) and Downham (2024) estate centenary.

Lewisham's Big Conversation

A youth-led research and development project exploring the value of the arts and creativity in supporting young people with their mental health, wellbeing and happiness.

Supported by the GLA and lead by The Albany, Lewisham Music was commissioned £8,561 to become a lead partner alongside Sound Like Chaos , Heart N Soul, Lewisham Youth Theatre and the Albany, in our London Borough of Culture year to understand the role arts and creativity play in the mental health of young people.

London Music Fund (Sounds of the Next Generation)

Lewisham Music was funded £12,500 by London Music Fund through their Partnership Projects Fund. This project is delivered in partnership with Tomorrow's Warriors and Trinity Laban to inspire and support more young people of diverse backgrounds to discover jazz and feel better connected with the vibrant, collaborative and boundary-pushing jazz scene in Lewisham. The project will connect young musicians (aged11-17) with high quality learning and performance opportunities led by inspirational jazz facilitators. Jazz Hang will strengthen partnerships with Lewisham schools, build aspirations and genuine progression routes for young people, particularly female and from the African diaspora. Jazz Hang will create; sustainable progression pathways for young musicians, accessible performance opportunities and professional development opportunities for school teachers, community music and student workforce.

Merchant Taylor Trust

Through Merchant Taylors Trust's Small Grant programme Lewisham Music were funded £4,900 to deliver 'Reaching Out'. This funding allowed us to extended the Community Programme Producer role from 3 to 4 days per week. This increase in capacity has helped develop new referral pathways, increase progression opportunities for young people and responded to the increased complexity of the referrals we are now seeing across our various community programmes.

Sir William Boremans' Foundation

The Drapers Company has funded Lewisham Music £6,000 to transform our Furthering Talent programme by supporting young people's musical tuition, introducing a vibrant series of immersive 'Get Together' events and a package of 'personal bursaries' to remove barriers and further each child's progression.

Sydenham Arts

Lewisham Music were commissioned £850 to deliver on their START Programme, a three part series of training and skills workshops for young adults aged 18-25 seeking to explore career pathways in the music and/or creative industries.

17. 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 non-teaching 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.

continued...

40

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Contributions amounting to £15,463 (2022 £13,426) were payable to the schemes at 31 March 2023 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 f 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:

The next valuation result is due to be implemented from 1 April 2024.

The pension costs paid to TPS in the period amounted to £159,970 (2022 £131,394) £40,407 employees contributions and £119,563 employer contributions

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

17. EMPLOYEE BENEFIT OBLIGATIONS - continued

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 2023 was £15,250.73 of which employee's contributions totalled £13,750.25 and employer's contributions totalled £1,500.48. (2022 £15,188 of which employees' contributions totalled £1,510 and employer's contributions totalled £13,678)

continued...

41

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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.

The total cost recognised in the period was as follows:

The total cost recognised in the period was as follows:
Current service cost
Past service cost
Plan introductions, changes, curtailments and settlements
Net interest income / expense
Recognised in profit or loss
Recognised in other comprehensive income
Total cost recognised
Amounts recognised in the balance sheet were as follows:
Present value of funded obligations
Fair value of plan assets
Asset/(liability)		 2023
£000
(15)
-
-
(1)
(20)
160
(140)
2023
£000
(875)
983
108		 2022
£000
(17)
-
-
(3)
(20)
(144)
124
2022
£000
(1,080)
1,048
(32)

17. EMPLOYEE BENEFIT OBLIGATIONS - continued

Changes in the present value of the defined benefit obligations were as follows:

2023 2022
£000 £000
Opening defined benefit obligation 1,080 1.132
Current service costs 15 17
Past service costs - -

continued...

42

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Interest expense
Actuarial (gains) / losses
Contributions by scheme participants
Benefits paid
(Gains) / losses on curtailment
Closing defined benefit obligation
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)
Other
Assets distributed on settlement
Contributions by employer
Contributions by scheme participants
Benefits paid
Closing plan assets		 29
(213)
2
(38)
-
875
2023
£000
1,048
28
(75)
4
14
2
(38)
983		 22
(60)
2
(33)
-
1,080
2022
£000
976
19
70
-
-
14
2
(33)
1,048

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

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

Equity instruments
Debt instruments (bonds)
Property
Cash		 2023
%
67
19
10
4
100		 2022
%
64
24
9
5
100

continued...

43

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

17. EMPLOYEE BENEFIT OBLIGATIONS - continued

The principal actuarial assumptions used were as follows:

2023 2022
Discount rate 4.75% 2.70%
Expected rates of salary increases 4.00% 3.90%
Expected rates of pension increases 3.00% 3.20%
The mortality assumptions used for longevity (in years) on retirement at age 65 are:
Males Females
Current pensioners 23.5 years 24.1years
Future pensioners 20.8 years 25.9years

Sensitivity analysis

Change in assumptions at 31
March 2023:		 Approximate % increase to
Defined Benefit Obligation		 Approximate monetary
amount
£000
0.1% decrease in Real Discount
Rate		 1% 11
0.1% increase in the Salary
Increase rate		 0% -
1 year increase in member life
expectancy		 4% 35
0.1% increase in the Pension
Increase Rate(CPI)		 1% 11

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.

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 2023 was £14,259 (2022 £13,556), of which employer's contributions totalled £7,854 (2022 £6,055) and employee contributions totalled £6,405 (2022 £7,531)

18. RELATED PARTY DISCLOSURES

There were no related party transactions for the year.

continued...

44