2020-08-31-accounts

a• Jp SEDMC TRUST

Update from the Chair

Well, what a year of two halves! Starting with the highs of some newly implemented digital processes, and ending with with a national lockdown!

I'm so proud of our team this year, despite the lockdown restrictions cast upon us, our staff and members rose to the occasion and turned their hand at virtual music making and were even able to put on a summer concert.

This year we also formally closed our old charity AVEMA Trust and fully switched to SEDMC Trust. All staff were also issued with contracts of employment.

Our Main purpose remains the same, to advance the understanding, enjoyment and participation of children and the public in the Amber Valley and Erewash area in music making.

We currently offer 19 groups and ensembles for players of a range of abilities, instruments and styles.

Including orchestras, wind, brass & swing bands, chamber groups, clarinets, saxophones and guitars and choir groups. In addition to our main Centre at Kirk Hallam, we also run a Satellite Groups, for those that have not been playing their instruments for very long.

At the start of this academic year we took the opportunity to overhaul our registration process which is now fully digital making it easier for members and our staff. We also started the use of e-ticketing for our concerts. We hope that these are the start of many process improvements to streamline how we work.

AT A GLANCE 8 -1 TOTAL 222 MEMBERS +9

PERFORMANCE OPPORTUNITIES

19 -1 -£529 +£4,737

ENSEMBLES NET DEFICIT

Membership

Our membership has remained fairly static this academic year with 222 active members throughout the year, with approximately 190 of those being either 18 or below which maintains our core offering being for young people.

Whilst this number maintains our healthy norm, we do anticipate that with the ongoing Corona-Virus situation, we will have to work harder in the coming years to maintain this. We know that whilst schools remain closed, it is harder for our teachers to recommend SEDMC to their students which is where the majority of our membership comes from.

We also know that many students will be leaving us at the end of the academic year as they leave for university. We are already planning initiatives to combat this decline.

We continue to be grateful for the support of Derby and Derbyshire Music Education Hub for their financial support in the from of an Arts Council England grant.

RESPONSE TO THE PANDEMIC

As with most organisations, the restrictions placed upon us by the national lockdown had significant impact on our normal operations. In March 2020 we suspended our usual rehearsals in line with the guidelines. At this time, the majority of our staff were placed on furlough leave, receiving 80% of their usual income.

The trustees agreed that we should continue to employ our Director of Music and Centre Co-ordinator who worked tirelessly to make plans to continue music making and plans to return safely when possible.

We also were able to offer two ensemble directors continued employment whilst they offered virtual ensembles to members in the form of a Quarantine Jazz group and Metronome Magic. Each ensured music making could continue for our members in some form.

devised an alternating timetable, one way system, sanitising routine as well as providing ensemble directors with clear screens to shield them whilst facing the ensemble.

In March we also made the decision to postpone our July 2020 tour to Saltsburg by a year. This mitigated any financial loss to members and the trust, however we do currently have vacant positions which need to be filled to ensure there is no financial loss to the trust in the future.

We envisage that thanks to the furlough scheme and reduced rental payments, the immediate effects of the pandemic will have limited financial impact on the trust

At the end of August 2020, we are currently planning a return to face-to-face delivery of ensembles from our usual venue. To ensure that this return is as safe as possible, we have

Quality & Standards

SEDMC continues to operate its programme of one to one monitoring and mentoring with our Ensemble Leaders. This is led by the Director of Music, who is an employee of both the Derby & Derbyshire Music Partnership and AVEMA trust. The programme continues to provide a useful means of measuring progress, and successfully to show continued improvement of Quality and Standards.

It is also a very helpful method of obtaining important feedback from staff on the way Music Centre functions on a weekly basis. As part of our funding agreement with the Music Partnership, the Centre and the Trustees agree an annual set of performance objectives – our Service Level Agreement. We continued to meet or exceed these objectives and have been successful in securing funding for next year.

Staff

The number of staff employed in the Music Centre in was 20 consisting of 15 Ensemble directors and 5 Administration staff (Director of music, Centre Coordinator, Administrator, Music Librarian, and Tuck Shop Manager. In addition, Centre employs members to assist with putting out and packing away our equipment

Trustees

The trustee team has largely remained the same throughout this academic year, however our treasurer Ed Inskip decided to step away from the trust at the end of the year

Current Trustees

Luke Stanley Chair Phill Thornhill Secretary Ed Inskipp Treasurer (until March 2020) Charlotte Hallworth Treasurer (from March 2020) Chris Holwell Trustee Diane Wadey Trustee Rachel Marshall Trustee Chris Knapp Trustee Mark Shearing Trustee Sheila Middleton Honorary Trustee

FINANCE

The Trust’s independently verified accounts are attached to this Report; these are summarised as

follows

• Total income for the year was £101,162. This includes £8,886 of payments from members taking part in the Tour and a £37,597 transfer of funds from the closing of AVEMA trust. Net operating income for the year is therefore, £54,679

• Net income from concerts was £2,828 this was lower than expected however is a direct result of not all the concerts the trust planned to run being possible in the year. Plans are in place to resume as soon as UK restrictions allow.

• Our main sources of income remain membership subscriptions and the Arts Council England grant administered by the Derby and Derbyshire Music Partnership. This

provides a tiered funding structure based on membership numbers.

• The lower limit for the £17,000 grant is 200 members. Below this number, the grant funding drops to £10,000. This year we received £17,000 and the trustees are monitoring membership numbers in conjunction with membership retention & new projects to encourage younger members to join the centre.

• Total expenditure for the year was £56,226. This includes £1,018 of payments for the Tour. Net operating expenditure was, therefore, £55,208

• Income & Expenditure for the year have both been affected by Covid 19 and UK restrictions has led to reduced activities being offered between March & August 2020.

• There was a net deficit of £529 on operating activities (excluding Tour& fund transfer) for 20192020 period. During the year we received a Furlough grant of £8,231 which was a contribution towards covering salary costs while

FINANCE CONT.

temporarily closing the music centre. In additional due to a national lockdown and group meeting restrictions in place rental costs of premises significantly reduced with in the year too.

The Trust accounts closed with a cash reserve of £44,936. (£32,0267 unrestricted and £12,868 restricted.) Unrestricted reserves balance falls below the amount identified in the Trust’s Reserves Policy, which is that reserves should equal two terms worth of our essential operating costs (salaries and rents). This is in normal circumstances is approximately £35,000 however while the UK restrictions remain in place the trusts actual operating costs will remain reduced. It is the Trustee’s view that they will continue to run a balanced budget in the short term and look to increase the reserves as normal activities/operations resumes. Membership retention and fundraising are key factors in returning the trusts reserves to the expected level.

Looking Ahead

Despite the impacts of Corona Virus, the trust remains a vibrant place for people to make music.

We're looking forward to hopefully to return to face-to-face rehearsals in September 2020 albeit in a slightly different way to usual.

The other risk is that the ongoing CoronaVirus situation restricts us in the new academic year from returning to face-toface rehearsals. This could also impact our fundraising efforts for Tour and concerts which are another big source of income for the trust.

Our current risks are around a loss of members at the end of this academic year and our predictions of a hard year to recruit more members next year. The risk being that the majority of our funding is based on a minimum membership level.

The postponement of the 2020 tour to 2021 may also need to be further delayed, and the trust will continue to monitor the restrictions and ensure staff an members are kept up to date with any developments.

a• Jp SEDMC TRUST

Independent examinerfs report to the trustees of South East Derbyshire Music Centre for the year ended 31 August 2020 I report to the trustees on my examlnation of the accounts of South East Derbyshire Muslc Centre (the chartyl for the year ended 31 August 2020. Responslbllltles and IM7$1s oAreport As the trustees of the charty you are respon51ble for the preparation of the accounts In accordance wlth the requirements of the Charltles Act 2011 {the Actr). I report in respect of my examination of the chartvs accounts carried out under section 145 of the 2011 Att and In carrying out my examination I have followed all the applicable Dlrectlons given by the Charity CommissSon under sectlon 145{5llb) of the Act. Independent examinerfs stutement I have completed my examination. I conflrm that no matters have come to my attention In connectlon wlth the examination giving me cause to belleve that In any material respert: l. accounting records were not kept in respect of the charity as requlred by sectlon 130 of the Act; or 2. the accounts do not accord wlth those records. I have no COn￿rn$ and have come across no other matters in connection vAth the exarnlnatlon to whlth attentlon should be drawn In this report In order to enable a proper understandln8 of the accounts to be reached. Signed: Full Name: Quallficatlon: QciIx Date:

s￿th East Derbyshire Music Center Treasurers Report Section A Receipts and payments Rows and pa¥nnts lar yeat to 31 Ahwt 2019110 2018119 Note Maln CentEf Satellrte cbubs Concert Reciepts CknnatiorbS Grarts & ￿b￿lieS stnxnert Hire Instrument Sabes 16.769 763 3.842 68.407 Tuck Shop Aece fte2d Salts lry kui Tour Reciepts Totsl A¢depts 1.598 1,162 Salarles 40.971 8.U7 1.014 Concert Paynrts knstnmnerts y￿k Shop Pay￿rtS Tour Payments Tralnin r•lry E¥pff*ses elocatlon Expenses Extefnal Events AcC￿ntant 911 1.0 210 1.248 230 Compuler & stati￿￿V rector of Music PrDAecls Tolal P4et OpefaDry IDefidtl 44.936

South East Derbyshire Music Center Treasurers Report Section B Statement of assets and liabilities at the end of the period •t31A Cash he Savin8 fvuourt Current k(0￿¢ IUnre5trkedl Current ACco￿t IRestricted Totsl Cash I￿ld$ 32,067 12.868 44,936 A&￿ts rntalmd lor the d￿1￿% own Instumenis 81.830 Sh¢p sto¢k helJ lor fes• Debtors Imember fees Iwtstsndwl 1356 1964 U•blNtI Crediiors 27363 36 461 AtcNa Dèffered Income

S¢)uth East Derbyshire Music Center Treourers Report Section C Notes to the accounts l ) Dortatitins. Grants & ￿bIdleS AVEMA Tw5t FUNI Tran51er r￿ftA SLA VTOII. Furknugh scheme Misc Donation5 2020 37397 5.119 17.C 8231 3S9 1019 Totsl 68,407 21 A55ets for Ip4ffl u SEONK own a vjriety of in#wments whKh ¥e US￿ to ald dehvery of MUSK rn•mmes th¢wih¢ out the ye¥. kn5tn#nents are currentl¥ inswed loi the¥￿e of £81.830 OW￿1$￿ tsanS1e￿d from AVEK4 Sep 19 J } P￿￿ellts PTefftises I Venue Hlre pald in athiance st￿￿ne1￿ In5ur•nce 810 516 Tour ￿n(e pryalAe to Tour oprator 2021 27,363 S l Deffet•d IbKI 2Q20121 Attendance fees In ad¥aKe. 461 61 Debl Touf P¥tlclpates ln 2020 convnlttod to wy the SEDMC In 2021. 14.LMB

S￿th East Oerbyshire Music Center Treasurers Report Section C Notes to the accounts (Continued) Tran51erEd tr(¥n 2Q19120 Total Sts'l to ￿ received Tour payments frcxn Part￿pants con14b￿￿$ from FLmthaisOw a￿l￿ty 12.6 14.003 13.286 Stll to be Commiteed T￿r exw15QS 27.363 Ifft 2019 Ama tknsed trnrbfered its cormiltmerts and fvrM15to SEM(L Part of TAh w•$ to t 36 musklans on a orthe5tra touT to Austria. Th55 due to take place In 2020 due to the parMIeTh￿C ta￿ plans h￿e havè been postponed until 2021. If the trip ts unablè to 80 a￿ad as planned. P￿l£lap1nts wil expèll a (knly costs financial commrtted have been dlsFAayed. Additlonal c05t such as accomodatlon will bE incurred in 2021. Ae(ewts and payments aC(ounts ¢ortain • swmiary of mow receib•d spen¢ ￿r$re the perlod arnl a ol a55ets and liablrtie5 at the end ol the perK>d. Usually. cash recei¥d cash spent wlll ￿dL￿le trarwtbons throu bank accoun15 and cash In han Fund •tUK4nll Unrestricted lund5 (an be used In accordance with Ihe Iharitable obleclrrt5 at the th5(rellon ol Ihe tru5tee5. OEsnated ILmds are ￿Tr#r￿ted fwls earmarked ￿ the trustÈos for a panicul¥ wrpose. Re5tTlCted tur￿5 can be used lor partkLlw re5tr1cted p￿￿￿e5 withln the oble(ts ol the tharlty. Restri(tlon5 •rlse when spo(lfied lry tho d(XKK or when IwA15 raIS￿ lor patlcular rostrlcted wp05e C1￿￿t015. TI￿se are amourts owed lry the chwty. t￿t not poMI Ihe Kcountlni perlod. Th￿ are amDunts owed to tha￿ty, lJt recehyd In the •(rourtry These are Se￿e5 th Ihe (￿ty p•Sd fty In a￿V￿Ce, not Us•d the ￿D￿nI1￿ pp1k￿.

SEDMC Svuth East DerbyshirE Music Crlltre www.SEDMC.co.uk info(3sedmc.co.uk Supported using public funding by Derbyshire Education Hub ARTS COUNCIL ENGLAND twmerrt for EdLrat]on