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2020-12-31-accounts

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CHARITY NUMBER: 1181735

PRS MEMBERS’ FUND CHARITABLE INCORPORATED ORGANISATION

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2020

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

Contents

Page
Patrons, Trustees, Officers and Advisers 2-3
What we do: Supporting songwriters and composers 4
Report of the Trustees 5-18
Statement of Charity Trustees’ Responsibilities 19
Independent Auditor’s Report to the Trustees 20-22
Statement of Financial Activities 23
Balance Sheet 24
Statement of Cash Flows 25
Notes to the Financial Statements 26-36

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

Patrons, Trustees, Officers and Advisers

Charity registration number

1181735

Address

2 Pancras Square King’s Cross London N1C 4AG

Patrons

Don Black OBE Geoffrey Brand Wayne Hector Jools Holland OBE Dr Brian May CBE Rick Wakeman Brian Willey

Trustees

Nicholas Graham (Chair) Sarah Rodgers (Deputy Chair) Kim Appleby Mark Fishlock Peter Glenister Christopher Gunning Nigel Hess Peter Knight Jnr Mick Leeson Eddie Levy Michael Lindup Paulette Long OBE Megg Nicol Paul Patterson Mervyn Winwood

General Secretary

John Logan

Administrator

Christine Keeley

Welfare and Development Officer

Athena Pite

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

Patrons, Trustees, Officers and Advisers

Special Projects Officer

Ilaria Piscopo

Administration Assistant

Christopher Rowland

Visitors

Dave Arcari Jane Nelson Angelina Otoo

Bankers

NatWest Bank plc PO Box 2162 20 Dean Street London W1A 1SX

Auditor

BDO LLP 55 Baker Street London W1U 7EU

Investment advisers

Aberdeen Standard Capital 30 St Mary Axe London EC3A 8BF

James Hambro & Partners LLP 45 Pall Mall London SW1Y 5JG

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

What we do: Supporting songwriters and composers during their toughest times

Life in the music industry can be difficult and unpredictable. Many songwriters and composers are selfemployed, lacking the security of sick pay, pension or savings. Even after periods of success, earnings can become precarious. Old age, illness, an accident or mental health problems can hit extremely hard.

The PRS Members’ Fund is there financially, practically and emotionally for PRS members, exmembers and their dependants in tough times. And there have been no tougher times than 2020. This year, as the Covid-19 pandemic ravaged the income and lives of many in the music industry, we gave more financial help to more people than ever before. In conjunction with PRS for Music and the PRS Foundation, we rapidly set up our Covid-19 PRS Emergency Relief Fund in March and gave just under £2 million in hardship grants over the year.

We did this alongside continuing with our other long-running support, which includes:

We pride ourselves on being there for everyone who meets our eligibility criteria, offering support tailored to their particular situation, to help them get back on their feet and thrive.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

Report of the Trustees

The PRS Members’ Fund Trustees are pleased to present their report and financial statements for the year ended 31[st] December 2020 to members of the Performing Right Society.

We have prepared the report and financial statements in accordance with the requirements of the Charity’s constitution, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard in the UK and Republic of Ireland (FRS 102) (effective 1[st] January 2019) (Charities SORP (FRS 102)).

2020: Our aims

We started 2020 looking to progress strongly with the four goals outlined in our 2019-2022 strategy:

  1. Respond appropriately to the trend of the people we help needing our support for longer.

  2. Fill gaps in knowledge and data about the people we help through our new Impact Measurement Framework, so we can better tailor our support for them.

  3. Expand the services we provide in breadth and depth.

  4. Address the mental health crisis among songwriters and composers.

As our highlights below show, we have made good progress. However, when the Covid-19 pandemic hit in March 2020, we had to rapidly and agilely pivot our plans, massively increasing the financial support we offered to make sure PRS members, ex-members and their families survived the crisis. We are extremely proud of what we achieved in this respect.

The pandemic also restricted our work towards goal 1, which we intend to rectify in 2021.

2020: Our highlights

Launching our Covid-19 PRS Emergency Relief Fund

When the Covid-19 pandemic struck, it put an abrupt end to live music performances worldwide. With television and film production largely on hold and many businesses closed, their need for music decreased hugely too. As such, many PRS members saw their incomes drop or disappear overnight. Too many weren’t entitled to government help – or couldn’t wait until it reached their bank account – and found themselves struggling to survive.

We knew we had to act quickly. We launched the PRS Covid-19 Emergency Relief Fund (ERF) in March 2020, working together with PRS and the PRS Foundation. PRS members facing significant financial difficulties could apply for grants of up to £1,000 to help tide them over and pay for essentials until the PRS April distribution. Our staff team worked tirelessly with PRS staff, volunteers and managers who helped with assessing applications, making payments and notifying successful and unsuccessful applicants on our behalf.

In 2020 we paid out just under £2 million from the ERF to more than 4,000 songwriters and composers, giving them the money they and their families needed to survive. We provided £1.3 million of this, with PRS giving £500,000, the PRS Foundation £100,000, and two other major donors gave £202,000 and £80,000 respectively. We were extremely grateful to receive a further £50,000 in ERF donations from PRS members, staff and the public through the PRS Presents LCKDWN livestream concert in May. We gratefully acknowledge the fundraising efforts of PRS CEO Andrea Martin and those behind PRS Presents LCKDWN, and the staff and the performers who took part in this virtual gig over 24 hours in aid of the ERF.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

Report of the Trustees (continued)

We gave ERF grants to members living not only in the UK, but in Jamaica, Malta, South Africa, St Lucia, Brazil, Romania, USA, Argentina, Bahamas, Canada, New Zealand, Israel, Sri Lanka, India, Norway, Ghana, Republic of Ireland, Finland, Slovenia and Denmark. We thank GCEN for their generous support with international payments processing.

For those who needed more support, we also put together a special Covid-19 advice page on our website, where members could find details of other organisations offering support, and the latest updates on the pandemic.

We were very grateful for the amazing and much needed support the ERF received during the year. With the pandemic still ongoing, we have committed to distributing another £2 million in early 2021, liquidating part of our investment portfolio to help provide these funds.

Providing more financial support to improve lives

While the Emergency Relief Fund was absolutely vital during this unprecedented year, we continued to provide essential financial support to PRS members, ex-members and their families facing tough times in other key ways too, giving out a further £321,590 to those in need.

Being there on the phone

In normal times, our Welfare Officer and regional visitors visit many of the people we help during the year. They can help members apply for our grants and state benefits, help organise support with care and health needs, liaise with other organisations on the member’s behalf – and simply provide a listening ear and a friendly chat.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

Report of the Trustees (continued)

Covid-19 meant we had to suspend face-to-face visits in March, but we continued to keep in touch through telephone and Zoom calls. At a time of isolation and restricted social connections, many people told us they welcomed the opportunity to have a friendly chat. We will of course look to reinstate home visits for the more vulnerable members when we are allowed to. We are grateful to all our visitors for their work during a very difficult year.

Providing mental health webinars

Improving members’ wellbeing and mental health is a top priority for us, especially in these troubled times. In September we produced our first ever Zoom webinar on mental resilience for members. Music & You Founder and CEO Jack Williamson led the webinar, sharing nine ways to stay mentally resilient. We are looking at holding more webinars next year.

We were also delighted to participate in the Ivors Academy Music Creator Wellbeing Webinar for Mental Health Awareness Week in May. This explored the range of wellbeing support and resources offered across the industry. It provided the Fund with a platform to raise awareness of the work we do and enhanced our connections with like-minded organisations.

We also put together a guide for members with tips on mental health wellbeing and provided an interview for M Magazine for its 'Taking Care' series.

At the beginning of December, the Fund took part in the Elevate Music podcast episode about musicmaking and the specific problems songwriters and composers face in their work and where to access support. Vocal and performance coach Lucinda Heyman hosted the podcast, which was produced in partnership with Help Musicians.

Improving diversity and inclusion

2020 brought racial justice into sharp focus. Tragic events including the death of George Floyd prompted us to take a critical look at how we approach diversity and inclusion at the Fund.

This year our staff, Trustees, and PRS staff and members came together to discuss how we can better engage in tackling all forms of inequality within the music industry. As a result, we signed up to the UK Music Ten-Point Plan, which aims to increase diversity and boost inclusion within the UK music industry’s trade bodies. We also developed our own Diversity and Inclusion Pathway to Progress, setting out our long-term objectives and initiatives.

During Black History Month in October, we collected and published interviews, stories and memories on our website to celebrate the contribution of black people to the richness and diversity of arts and music in the UK. We also took part in #BlackOutTuesday on social media, publicly showing that we stand against racism and prejudice.

Increasing our reach online

We want to spread the word about how we can help PRS members, ex-members and their families far and wide, so we can support as many people as possible.

In 2020, we built our presence and reach online to achieve this. More than 14,000 people visited our website, while we increased our Facebook followers by 8% and our Instagram followers by 87% compared to 2019. On Twitter, our tweets earned more than 268,000 impressions.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

Report of the Trustees (continued)

Our communications strategy was also brought to life through press releases on our website and circulated to industry organisations through emails; two newsletters published in June and December; and through PRS’s internal/external communications, including its membership newsletter, intranet, social media and M Magazine online. This has made a huge difference to the Fund’s reach.

Increasing our reach through events

On 14[th] February we held our ‘One Love’ surgery at King’s Cross, offering members working in the reggae community 1-2-1 confidential, pre-booked sessions to find out how we could support them. We were grateful to Dub Vendor, VP Records, Jack Russell Music and Westbury Music Ltd for promoting the surgery.

Our work was also highlighted at the PRS AGM, held in August, where our promotional film was shown at the virtual meeting.

Before the pandemic started to take its toll we filmed interviews with classical composer and violist Sally Beamish , and classical and media composers Paul Patterson and Nigel Hess , who are two of our trustees. The interviews were included in a short film to raise awareness of the difficulties composers face, and where to find the financial help available for PRS classical composers.

Connecting PRS members with sheltered accommodation

We continued to support and direct members in need of sheltered accommodation to Cyril Wood Court in Bere Regis, Dorset, built for people who have worked in music and other areas of the creative arts.

We have made loan funding available to East Boro Housing Trust, who run the accommodation, to make improvements to the development. In return, we are given the right to nominate potential residents.

Maintaining partnerships

Throughout the Covid-19 crisis the Fund actively engaged with industry partners to ensure that information about our services was widely disseminated across different organisations and platforms. Along with extending our reach, these partnerships meant we could also direct applicants to alternative sources of assistance where needed.

British Association for Performing Arts Medicine (BAPAM)

BAPAM’s expert clinicians – including GPs, physiotherapists, psychologists, osteopaths and more – understand the demands of a performing arts career. They can help with problems including creative practice-related injuries and pain, muscular tension, voice problems, hypermobility, performance anxiety and mental health concerns.

BAPAM clinician assessments are free to PRS members. After the assessment, PRS members can approach us (and other funding organisations) for grants to pay for their treatment and improve their quality of life. We also donated £7,500 to BAPAM to support their work.

Help Musicians UK (HMUK) and Royal Society of Musicians (RSM)

We continued to work closely with HMUK and RSM, discussing issues affecting all three charities and exploring initiatives to help our respective communities. PRS members are often entitled to seek help from any one of the three organisations.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

Report of the Trustees (continued)

Music Minds Matter

Music Minds Matter, an initiative run by Help Musicians UK, offers a free and confidential 24/7 mental health support line, and a range of therapies for musicians. PRS members have access to these services, and we are aware that 15 composers and 53 songwriters contacted Music Minds Matter in 2020 (although we don’t know their identities for confidentiality reasons).

StepChange

We continued to refer our members in need of debt management advice to the charity StepChange. They can help with budgeting and provide a tailored personal action plan along with ongoing support. It’s a confidential service.

Shelter

Shelter helps millions of people every year struggling with bad housing or homelessness through their advice, support and legal services. We were delighted to carry on working closely with the charity in 2020. Members can access online advice, speak to an adviser through webchat or use local services. Once again, the service is confidential.

Macmillan Cancer Support

Macmillan offers a wide range of support to people with cancer and their families. Our partnership allows Macmillan (with the necessary consent) to refer patients who are PRS members to us if they need financial support.

Thank you

To do our vital work, we rely heavily on other charities, agencies, businesses and organisations.

Thank you to the following for their much-appreciated support and co-operation in 2020: Cyril Wood Court Trust, Workjoy, Performance and Media Coaching, East Boro Housing Trust, DES Computer Solutions, Pangaea Consulting, The Giving Department, GCEN, Next Rebel Ltd, 56K Productions (Italy), Dub Vendor, VP Records, Jack Russell Music, Westbury Music Ltd, Association of Charitable Organisations, The Ivors Academy, Help Musicians, Music Minds Matter, Royal Society of Musicians, Royal Theatrical Fund, Incorporated Society of Musicians, British Association for Performing Arts Medicine, Music Support, Musicians’ Union, UK Music, AIM, PRS Foundation, Royal Variety Charity, Francis W Reckitt Arts Trust, FELT Branding and CSL.

We also remain indebted to affiliated societies overseas and local PRS for Music agencies for helping us assess need and get urgent financial help to local members. These include SAMRO (South Africa), JACAP (Jamaica), ECCO (Eastern Caribbean) and PRS Malta.

We are grateful for PRS’s support to set up and administer our Covid-19 PRS Emergency Relief Fund this year, and for its generous £500,000 donation to the ERF. We also acknowledge its support in the form of donated facilities and services such as rent-free accommodation, heating and lighting. We are thankful too for advice and guidance from PRS’s communications, membership, human resources, legal and finance directorates.

We would also like to extend huge thanks to everyone else who donated to the ERF, including the PRS Foundation, two major donors, individual PRS members, management and staff, along with suppliers who wished to support PRS songwriters and composers through these challenging times.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

Report of the Trustees (continued)

Thanks also to The Giving Department, who generously provided a completely independent commentary for the Trustees on our operating model and the relationship between membership organisations and their benevolent funds. We will be working through the contents of their report during 2021.

We greatly appreciate the efforts of the Fund’s staff – John Logan, Christine Keeley, Athena Pite, Ilaria Piscopo and Christopher Rowland – who have gone above and beyond this year to rapidly distribute funds to the members who need them most, all while working under pressure from home.

Finally, we acknowledge the dedicated efforts of all the Trustees, who give their time freely.

Our future plans

In 2021 our plans include:

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

Report of the Trustees (continued)

Structure, governance and management

Since April 2019, PRS Members’ Fund has been registered as a Charitable Incorporated Organisation (CIO) with the Charity Commission.

The CIO is governed by our Trustees. The Trustees control and administer the Fund. However, the General Secretary is the officer directly responsible to the Trustees for the day to day management of the Charity, including management of the Fund’s small team of staff.

The CIO Trustees Board comprises 15 Trustees. Six are appointed directly by the PRS Board and six by members of PRS at our Annual General Meeting. Up to three Trustees are appointed by the CIO Board under the Constitution, one of which must be a composer, one an author and one a publisher. No one can be appointed a Trustee unless he/she is a voting or principal voting member of PRS. Nicholas (Nicky) Graham continued as Chair of the Trustees in 2020. Trustee Peter Knight Jnr is eligible for appointment by members at the PRS AGM in May 2021 for a period of four years.

All Trustees receive a copy of the Fund’s Constitution and a copy of the Charity Commission’s guidance notes on Trustee responsibilities.

Trustees and staff are encouraged to undertake training and development. Details of training programmes and seminars are sent to the Fund by the National Council for Voluntary Organisations, the Association of Charitable Organisations and other commercial and third sector providers. These are circulated to the Trustees and staff. The Charity meets the fees for attending training courses. In 2020 the Fund was represented at seminars dealing with mental health, investments, charity governance and unconscious bias training.

During 2020 the Trustees met each month to consider applications for financial assistance, as well as other aspects of the Fund’s affairs. From March 2020, these meetings were held virtually due to the Covid-19 pandemic, as were all meetings of the Charity’s sub-committees.

The Trustees deal with all applications in the strictest confidence. All grants are discretionary and are subject to an application process which takes into account income and savings, in line with the levels at which Universal Credit is available from the Department for Work and Pensions. With regard to the ERF, this was a bespoke scheme which took into account factors such as members’ lost income through cancelled gigs and tours while awaiting the result of their application for government support.

The Trustees have delegated certain powers in connection with the Fund’s administration to subcommittees, as set out below. These sub-committees allow the Fund to consider and draw conclusions on specific issues outside normal monthly meetings of the Trustees. This frees up additional meeting time for consideration of beneficiary issues or applications.

Terms of reference exist for all these sub-committees.

All work that the Trustees and their duly appointed sub-committees carry out is done voluntarily. Many of the tasks they undertake involve a great deal of work in addition to attending meetings.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

Report of the Trustees (continued)

Finance Sub-Committee

The Finance Sub-Committee (Chair: Pete Glenister) continued to have quarterly meetings with the Fund’s investment advisers, Aberdeen Standard Capital and James Hambro & Partners LLP, who manage a second and much smaller portfolio of investments. All matters relating to the management and performance of the Fund’s two portfolios were reviewed and considered at these meetings. All Trustees are invited to attend Finance Sub-Committee meetings. Regular reports and the minutes of Finance Sub-Committee meetings were submitted to the Trustees.

Peter Glenister (Chair), Nicky Graham, Mick Leeson, Mark Fishlock, and Mervyn Winwood were reelected to serve on the Finance Sub-Committee for the year. The sub-committee met three times during the year.

Strategy Sub-Committee

The Trustees re-elected Mick Leeson (Chair), Peter Glenister, Nicky Graham, Mike Lindup, Megg Nicol, Sarah Rodgers, Chris Gunning and Paulette Long. It met in September to consider diversity and inclusion within the Charity. Its work resulted in the Fund’s Diversity and Inclusion ‘Pathway to Progress’ plan.

Staff Sub-Committee

The Staff Sub-Committee’s purpose is to consider specific staff matters that are referred to it by the Trustees. In particular, the Staff Sub-Committee advises the Trustees on issues such as management and staff appraisals; objective setting and reviews; management and staff incentive schemes; and the terms and conditions of employment and remuneration of all Fund personnel.

Sarah Rodgers chairs the Staff Sub-Committee. Mick Leeson, Mike Lindup, Chris Gunning, Mark Fishlock, Kim Appleby and Nicky Graham were re-appointed members of the Staff Sub-Committee at the beginning of the year. The sub-committee met three times during the year.

Housing Projects Sub-Committee

This Sub-Committee has existed since 2016 to consider the purchase of properties that could be suitable for use by PRS members and beneficiaries who are in need of affordable accommodation and held as an investment. It is chaired by Nicky Graham.

Members of the sub-committee include Peter Glenister, Eddie Levy, Chris Gunning and Mark Fishlock.

Emergency Relief Fund Sub-Committee (ERFSC)

The role of the ERFSC is to ensure that the responsibilities and duties of the Trustees regarding Emergency Relief Fund matters are effectively managed and that the financial support available through the ERF during the pandemic is duly aligned with the Charity’s overall objectives and eligibility criteria.

ERFSC members are Nicky Graham, Sarah Rodgers, Mark Fishlock, Mick Leeson, Paulette Long and Pete Glenister. Nicky, Mick and Paulette are all former PRS directors. The sub-committee met five times during the year.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

Report of the Trustees (continued)

Mental Health Sub-Committee

The Mental Health Sub Committee ensures that the responsibilities and duties of the Trustees with regard to the development, implementation and monitoring of services designed to support the mental health and wellbeing of beneficiaries, are effectively managed.

Members of the Mental Health Sub-Committee are Pete Glenister (Chair), Kim Appleby, Mark Fishlock, Chris Gunning, Mike Lindup, Paulette Long, Megg Nicol, Paul Patterson and Sarah Rodgers.

Fundraising and Concerts Sub-Committee

The purpose of this sub-committee is to consider and develop specific ideas and projects around voluntary income generation.

Recommendations are made to the Trustees on key issues and progress relating to the Charity’s fundraising strategy, incorporating major gifts, individual giving, legacies, community events, the hiring of fundraising staff and volunteers, and the organisation of events, in particular gala concerts. The subcommittee met twice during the year. Plans were advanced for a fundraising concert at the O2 Shepherd’s Bush Empire, which was cancelled due to the pandemic.

Public benefit

The PRS Members’ Fund is a registered charity whose charitable purpose, as defined within the Charities Act 2011, is the relief and prevention of poverty. The Trustees believe that the Fund provides public benefit through the financial help and other assistance it gives to past and present members of PRS and their dependants. Dependants do not have to be members of PRS to qualify for help.

Our assistance can be crucial in preventing people falling further into poverty. For members of working age who are sick or injured, our support ensures that any delay in their recovery is kept to a minimum, with consequent savings to the tax payer in sickness and other benefits.

We follow the Charity Commission guidance on public benefit when reviewing our charitable objectives, achievements and performance and in planning our future activities, as described in this report.

Conflicts of interest and conflicts of loyalty

Our Constitution sets out the procedure for the Trustees to follow when a possible conflict of interest has been identified, in line with best practice and the Charity Commission’s expectations. The Fund also maintains a register which is updated annually.

Risk management

Risk management focuses on every aspect of the Fund’s activities, including health and safety of staff, financial controls and mandates, electronic payments security, IT and database security, disaster planning, recovery and safeguarding. The Trustees are comfortable with the processes that are in place to mitigate these risks.

The Fund subscribes to policies and procedures as laid down and monitored by PRS for Music Ltd; all Fund personnel are permanently seconded from this holding company.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

Report of the Trustees (continued)

Financial review

Total income for this exceptional year, including Covid-19 PRS Emergency Relief Fund donations, investment income, and donated facilities such as accommodation, rates, heating and lighting, amounted to £2,172,996 (2019: £844,899).

Donated facilities were £39,383 (2019: £33,366) and are included as income within donations and as a corresponding expense within support costs. Income, excluding the cost of donated facilities, amounted to £2,133,613 (2019: £811,533), comprising Emergency Relief Fund donations of £943,691 (2019: no ERF donations), regular donations and legacies of £886,087 (2019: £457,208), along with investment and other income amounting to £303,836 (2019: £354,325). Donations and legacy income also included royalty bequests of £544,512 (2019: £291,205).

The Trustees acknowledge the generosity of members of PRS who made provision in their Wills for legacies and bequests to the Fund. This sometimes included payment of royalties. We received a final distribution from the executors in respect of the estate of Enid Smith-Masters. We received donations in memory of the late Jerry Lordan, and his family and friends who have passed on, including Brian ‘Licorice’ Locking.

We were saddened to learn that PRS member Michael Carter had passed away due to Covid-19. His executors informed us that Mike had left his home to the Fund in gratitude for the help he received from the Charity over many years. The Trustees have pledged that the proceeds from the sale will be used to support PRS members through the pandemic.

Following appeals, donations were also received from many individuals and businesses to support the Emergency Relief Fund, paid either directly to the Charity or through the Charity’s JustGiving page.

In 2020 we distributed £317,715 (2019: £440,380) in regular grants, to help those in need, along with £1,965,280 in Emergency Relief Fund grants to help those in need of help during the global pandemic. Of this, £141,630 was paid out directly by the PRS Members’ Fund and £1,823,650 was paid over to PRS to distribute in phases 1 and 2 of the Emergency Relief Fund in April and June respectively.

We continued to provide support to beneficiaries on a regular basis as well as unprecedented support through the ERF. Older beneficiaries living on a state pension and benefits rely heavily on Fund activities continuing and financial help being made available while their financial circumstances remain precarious.

To comply with current accounting conventions, grants renewed in 2020 for payment in 2021 are recognised as accrued expenditure at year end. Fund staff are members of a contributory defined benefit scheme (‘the scheme’) operated by MCPS-PRS Alliance Limited. The Fund has been informed that future employer contributions will be affected by a deficit in the scheme and that additional annual contributions of approximately £5,000 will be required to be paid for the next 15 years, together with a share of the final lump sum payment of £75,000 to cover the deficit. At present, these amounts are by no means certain nor agreed with the operator of the scheme. The Trustees will undertake negotiations with the scheme operator to agree the Fund’s future contributions. As such, no provision has been made in these financial statements for this commitment until they have been agreed.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

Report of the Trustees (continued)

Reserves, endowments and investments

The Trustees continue to review their policy on reserves in the light of changing circumstances. The Trustees carry this out as part of the annual budget process. For the early part of 2020, the Trustees agreed that the policy should remain as stated: The Fund holds reserves, in the form of listed investments and programme-related ‘investments’, in order to produce income which can be used, after payment of management expenses, for grant-giving. The Fund aims to sustain and increase its grantmaking capability over the long term.

To clarify which of the Fund’s assets constitute reserves, and which constitute current funds for immediate use, the Trustees decided to divide the total unrestricted funds into a designated reserve fund and a general fund. It agreed to define the designated reserve fund as being of an amount equal to the value of the Fund’s investments as at 31 December. The general fund consists of the remaining balance of the Fund’s uncommitted funds and represents an amount of unspent net resources.

The purpose of the designated reserve fund is to generate income which the Fund can use to meet its charitable objectives. Any investment gains or losses will be transferred to the designated reserve fund in the first instance. The Fund’s annual budget will therefore normally be set at an amount reflecting the anticipated level of income from the designated reserve fund. The Trustees may, however, transfer funds into and out of the designated reserve fund as they see fit in order to further the Fund’s objectives. The designated reserve fund, which remains unrestricted, may be drawn on from time to time, at the discretion of the Trustees, to provide funds for major charitable projects which the Fund wishes to support and which cannot be covered out of the annual grants budget and the income arising from investments. Such a situation arose this year. We were able to support unprecedented levels of grantmaking through the Emergency Relief Fund by drawing down £1 million from our reserves. We anticipate liquidating an additional £1.3 million in 2021 to fund further phases of the ERF to support members who are continuing to suffer hardship as a result of the pandemic.

The Trustees consider the level of remaining reserves to be prudent and justified, and necessary to cover fluctuations in income and provide relief to an ever-increasing PRS membership. The Trustees also have in mind the long-term demographic challenges that may be faced when widening its service provision going forward, against an anticipated reduction in investment income due to realisation of assets, as described above, lower yields and our royalty income being adversely affected due to the impact of Covid-19 on the live music sector.

Investment managers

The Trustees have delegated the management of the Fund’s investments to the Finance SubCommittee which in turn delegated discretionary management to Aberdeen Standard Capital and to James Hambro & Partners LLP for long-term investment on a discretionary management basis. The two managers have different investment objectives.

The Finance Sub-Committee monitors the performance of the investment managers at its quarterly meetings. The minutes of those meetings are circulated to all Trustees.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

Report of the Trustees (continued)

Investment performance

Both the Aberdeen Standard Capital and James Hambro portfolios are managed on a total return basis, which includes both income and capital returns.

As at 31[st] December 2020, our portfolio with Aberdeen Standard Capital was valued at £12,664,579. Over the course of 2020, 12 income payments were made (totalling £316,264.23) and £1,000,000 was paid out towards to Fund’s commitment to the ERF.

While 2020 has been an unpredictable year, we are pleased to report that our quality, sustainablegrowth approach has led to the portfolio outperforming all benchmarks aligned to the portfolio (internal, peer group, CPI +4%) during the year. On a total return basis, the portfolio returned +8.82% in 2020. This is ahead of the CPI+4% target of +4.11% and ahead of the internal market composite benchmark of +5.04%. Stock selection has been the primary driver of relative and absolute outperformance against the benchmarks, particularly within equities.

As at 31[st] December 2020, the portfolio managed by James Hambro & Partners LLP was almost fully liquidated and had a value of £1,369,496. Over the full year, the portfolio returned +6.8%, net of fees, which compares to a peer group comparator as measured by ARC Equity Risk indices of +5.2%.

The portfolio saw heavy volatility throughout, what was, a difficult year for all asset classes due to the pandemic. With signs of progress on all counts towards the end of the year, markets continued their recovery from the March lows. By early September, markets had completely reversed, capping a remarkable 50% rise from the lows of late March. The managers continued to reduce the portfolio’s cash allocation over the period up to the end of the year, with a focus on adding to holdings that stood to benefit from a gradual loosening of restrictions and a return to a more normal economic environment.

Overall, the 12-month period ending 31[st] December 2020 saw world equities rise +12.7%, gilts +8.3% and cash +0.2%. The real laggard was the UK equity market which fell 11.8% in the year. The UK market’s lack of technology-driven businesses and still significant weighting to more challenged energy and financial sectors continued to handicap UK-focused investors; in 2020 alone the tech-heavy NASDAQ index in the US had outperformed the UK blue-chip index by almost 50 percentage points (+29% vs -20% in GBP).

Investment policy

The Trustees have considered the most appropriate policy for investing funds on a total return basis which considers both the capital growth and the investment income generated. It has issued the investment managers with an Investment Policy Statement (IPS), which allows the asset allocation to move between various investment strategies, depending on prevailing market conditions. The asset classes include bonds and equities for which ISP ranges have been issued and which are subject to scrutiny and review periodically.

Additionally, surplus cash (for which an IPS has also been issued) is held on short-term deposit and is readily available to the Trustees. It enabled the Trustees to create the ERF when the impact of the pandemic on members’ incomes began to unfold and PRS members required urgent financial support. We feel this policy should meet the Trustees’ strategy of achieving above-average returns through capital growth over the longer term, without taking excessive risk.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

Report of the Trustees (continued)

Responsible investment policy

While the Trustees wish to invest to maximise returns, they recognise that many of the issues and challenges the Fund’s beneficiaries face are exacerbated by certain sectors. With this in mind, the charity does not invest directly in tobacco or tobacco-related products. Beyond this, the Trustees do expect their investment managers to consider Environmental, Social and Governance (ESG) factors as part of their investment process.

Investment managers are selected based on the above, with progress monitored throughout the year at regular review meetings. Over the course of the year the Trustees were encouraged by the level of company engagement and, beyond this, the changes made to the investments to incorporate a shift in capital allocation as society plans for a lower carbon future. With this in mind, our investment managers are able to invest for a cleaner future while not losing sight of delivering the best investment outcomes for the Fund.

This report was approved by the Board of Trustees on 18[th] March 2021 and signed on its behalf by:

Nicholas Graham Chair of the Trustees

The Fund owes a deep debt of gratitude to all, past and present, who have generously made bequests and donations, large or small, to help the Fund and its work:

Ira Aldridge Michael Dawney Christopher Anderson Luigi Denza Doris Arnold via H.S. Pepper Leslie Elliott Dorothea Barcroft W.M. Farren via Maud Farren Eily Kathleen Beadell Marc Feld aka Marc Bolan Donald Morgan Bowden David Ferguson Frank Bridge via E.E. Bridge Andrew Fenner Ronald Bridges Len Fillis via D. James Helen Brown Marjorie Finck Elizabeth Bryce-Romain Reginald Fogwell via A.E. Fogwell Mabel Buchanan Percy E. Fletcher via Marie Fletcher Ivy Burgess Peter Foss via Mrs Olive Foss Rex Burrows via E. Burrows Douglas Furber via Gilberta Furber Sir Alfred Butt via Lady Vilma Butt Max Gartman via P. Desmond Desmond Carter Carroll Gibbons via Brian Lidstone Austin Coates via Yim Kim Fung Percy Greenbank via Phyllis Greenbank Eric Coates via Yim Kim Fung Johnnie Gray Les Condon Maurice Grew via G. Grew Samuel Cope Michael Head Thomas Dando via Elizabeth Dando William Henly via J. Reynolds

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Geoffrey Henman via Mrs S. Boeckmann Leslie Holmes via Ellen Joan Kilpatrick Michael Hurd Albert W. Ketelbey via M. Ketelbey Michael Gerald Lane via Patricia A Stanley C.S. Lang via W.M. Fox Bert Lee Harry Leon aka Art Noel Edward F. Lockton via E.C. Lockton E.M. Lockwood J.P. Long via Ethel Maud Blair Claudine Lordan Billy Mayerl via E.G. Mayerl Stella Morgan Joseph Murrells Norman Murrells Cecil Norman Desmond O’Connor Daphne Oram Leslie Herbert Osborne Panda Music via Monica Lawrence Harry S. Pepper

Sid Phillips via Marie Phillips Charles W. Prentice via Phyllis Prentice Leonard Rafter via Beryl Rafter Gordon Reed via M. Reed Gordon Reid via Joyce Reid Margaret Reizenstein Stan Reynolds Sydney Rosenbloom Frederick Rosse Paul A. Rubens via E. Burlinson Cecil James Sharp via Briony A Jose Reginald Somerville W.H. Squire Thomas P. Sutton Ivy St Helier Phyllis Tate Helen Taylor via S.H. Rothschild Madeline Chase Thomas Henry (Harry) Thorne Michael Trelford Charles Williams via M Williams Charles Windeatt via Jessie Windeat

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements For the year ended 31[st] December 2020

Statement of Charity Trustees’ Responsibilities

The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and regulations.

Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the Trustees must not approve the financial statements unless they are satisfied that they 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 these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011. 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.

Financial statements are published on the Charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Charity’s website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

On behalf of the Trustees

Nicholas Graham Chair 18 March 2021

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PRS Members’ Fund

Independent Auditor’s Report to the Trustees of PRS Members’ Fund

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of PRS Members’ Fund (‘the Charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the cash flow statement 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 law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements 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 related 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 12 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 auditor’s report 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. 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.

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PRS Members’ Fund

Independent Auditor’s Report to the Trustees of PRS Members’ Fund (continued)

If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 in relation to which the Charities Act 2011 requires us to report to you if, in our opinion;

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act[s] and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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PRS Members’ Fund

Independent Auditor’s Report to the Trustees of PRS Members’ Fund (continued)

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (‘FRC’s’) website at:

https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charity’s Trustees, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the Charity’s Trustees those matters we are required to state to them in an auditor’s 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.

Richard Willis (Senior Statutory Auditor)

BDO LLP, statutory auditor London, UK 18[th] March 2021

BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements

Statement of Financial Activities For the year ended 31[st] December 2020

Note
Income and endowments from:
Donations and legacies
2
Investments
3
Total
Expenditure on:
Raising funds
Publicity & fundraising activities
4
Investment managers fees
Charitable activities
5
Total
Net income before gains
on investments
Net gains on investments
6
Net gain on revaluation
of fixed assets
Net income being net movement
in funds
Transfers between funds
13
Total fund balance brought forward
at 1stJanuary
Total fund balance carried forward
at 31stDecember
13,14		 Unrestricted
funds
2020
£’000
1,869
304
2,173

172
70
242
2,460
2,702

(529)
925
13

409
-
15,129

15,538		 Unrestricted
funds
2020
£’000
1,869
304
2,173

172
70
242
2,460
2,702

(529)
925
13

409
-
15,129

15,538		 Unrestricted
funds
2019
£’000
491
354
845
105
57
162
680
842
3
1,858
24

1,885
-
13,244

15,129

All amounts relate to continuing activities.

The notes on pages 26 to 36 form part of these financial statements.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements

Balance Sheet as at 31[st] December 2020

Note
Fixed assets
Tangible fixed assets
7
Investment property
8
Investment assets
9
Programme-related investments
12
Dealing account deposit
Current assets
Sundry debtors
Dealing account deposit
Bank and cash balances
Less: Current liabilities
Sundry creditors and accrued charges
HM Revenue and Customs VAT due
Net current assets
Net assets
Funds
13,14
Restricted funds
Unrestricted funds:
General funds
Designated funds - investments
Total funds		 2020
£’000
-
227
12,421
377
-
13,025
123
1,618
904
2,645
95
37
132
2,513
15,538
-
2,890
12,648
15,538		 2019
£’000
-
214
14,328
419
22
14,983
75
-
205
280
116
18
134
146
15,129
-
587
14,542
15,129

The financial statements were approved by the Trustees on 18[th] March 2021 and signed on its behalf by Muff Winwood Mark Fishlock

The notes on pages 26 to 36 form part of these financial statements.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements

Statement of Cash Flows for the year ended 31[st] December 2020

Total
funds
Note
2020
£’000
Cash flows from operating activities:
Net cash used in activities
(a)
(883)
Cash flows from investing activities:
Dividends and interest from investments
304
Proceeds from sale of investments
5,633
Purchase of investments
(2,801)
New loans issued to beneficiaries
-
Repayment of loans from beneficiaries
42
Net cash provided by investing activities
3,178
Change in cash and cash equivalents in the
reporting period
2,295
Cash and cash equivalents at the beginning of the
reporting period
(b)
227
Cash and cash equivalents at the end of the
reporting period
(b)
2,522
(a) Reconciliation of net income to net cash flow from operating activities
Net income for the reporting
period (as per the Statement of Financial Activities)
409
Adjustments for:
Gains on investments
(925)
Gain on revaluations
(13)
Dividends and interest from investments
(304)
(Increase) in debtors
(48)
Decrease in creditors
(2)
Net cash used in activities
(883)
(b) Analysis of cash and cash equivalents
Cash in hand
904
Dealing account deposit
1,618
Total cash and cash equivalents
2,522		 Total
funds
2019
£’000
(414)
354
11,323
(11,586)
(7)
12
96
(318)
545
227
1,885
(1,858)
(24)
(354)
(50)
(13)
(414)
205
22
227

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements

Financial Statements for the year ended 31[st] December 2020

Notes

1. Accounting policies

(a) Basis of preparation and assessment of going concern

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these financial statements. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1[st] January 2019) (Charities SORP (FRS 102)), and the Charities Act 2011.

The Fund constitutes a public benefit entity as defined by FRS 102.

The Trustees consider that there are no material uncertainties about the Fund’s ability to continue as a going concern. There are no significant areas of judgement or key assumptions that affect items in the financial statements other than those included within the accounting policies described below. With respect to the next reporting period for the year ended 31[st] December 2021, the most significant areas of uncertainty that affect the carrying value of assets held by the Fund are the level of investment return and the performance of the investment markets (see the investment policy and performance and risk management sections of the Report of the Trustees for more information).

(b) Fund accounting

Unrestricted funds are general funds that are available for use at the Trustees’ discretion in furtherance of any of the objectives of the Charity.

Designated funds are unrestricted funds set aside at the discretion of the Trustees for specific purposes. The designated fund for investments is that part of unrestricted funds that represents the investments held by the Charity.

Restricted funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose and the restriction means that the funds can only be used for specific projects or activities.

(c) Income recognition

All incoming resources are included in the Statement of Financial Activities (SOFA) when the fund becomes legally entitled to the income, it is probable that the income will be received and the amount can be quantified with reasonable accuracy. The following specific policies also apply:

Donations and royalty bequests are credited to the SOFA when received or when the amount can be quantified with reasonable accuracy, if earlier.

Donated services and facilities are included at the value to the Fund where this can be quantified.

Legacies are recognised when they are measurable, probate has been granted and entitlement is clear. Where deemed appropriate, a discount is made for expected costs within the estate.

Investment income is credited gross to the SOFA on the date it becomes payable with the exception of income from fixed interest bonds which is credited over the period of the bonds.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements

Financial Statements for the year ended 31[st] December 2020

Notes (continued)

1. Accounting policies (continued)

(d) Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Fund to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is charged to the SOFA on an accruals basis.

Grants to beneficiaries are charged to the SOFA on the date approved by the Trustees or on the date of any conditions or requests being met, if later.

Pension contributions, as described in Note 10, are charged to the SOFA as they become payable.

Support costs are allocated to costs of raising funds and charitable activities on the basis consistent with the use of these resources.

(e) Tangible fixed assets

All assets costing more than £500 are capitalised and valued at historic cost. Depreciation is provided using the following rates and bases, which reflect the anticipated useful lives of the assets and their residual value.

Computers - 33% straight line

(f) Investment property

The investment property is measured at fair value at each reporting date. An impairment review is carried out annually and the fair value adjusted for any impairment identified.

(g) Valuation of investment assets

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the Balance Sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on the revaluation and disposals throughout the year.

The Fund does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the Fund is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk and changes in sentiment concerning equities and within particular sectors or sub-sectors.

(h) Gains/losses on investment assets

All gains and losses are taken to the Statement of Financial Activities as they arise.

Unrealised gains and losses on investment assets represent the difference between their fair value at the end of the year and their fair value at the beginning of the year, or transaction value if acquired during the year.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements

Financial Statements for the year ended 31[st] December 2020

Notes (continued)

Realised gains and losses on disposal of investment assets represent the difference between the sale proceeds and the fair value at the beginning of the year, or transaction value if acquired during the year.

(i) Programme-related investments

Programme-related investment are concessionary loans provided for the benefit of the Fund’s beneficiaries and loans made to a Trust under a scheme to provide practical help for the Fund’s older beneficiaries. Such loans are initially recognised and measured at the amount paid, with the carrying amount adjusted at each Balance Sheet date to reflect repayments and any accrued interest, less any impairment.

(j) Significant estimates and judgements

The Trustees consider that there are no significant estimates or judgements which are likely to affect the Fund.

2. Donations and legacies

Donations and legacies
Royalty bequests
PRS donation – donated facilities
Other income		 2020
£
1,285,249
544,512
39,383
17

1,869,161
 2019
£
165,999
291,205
33,366
4
490,574

In 2020, all donation and legacies income totalling £1,869,161 was attributable to unrestricted funds (2019: £490,574). Donations received in 2020 include £943,691 (2019: £Nil) received in relation to the Emergency Relief Fund campaign.

3. Investment income

Dividends
Interest
Rental income		 2020
£
290,406
3,429
10,000

303,835
 2019
£
340,285
4,092
9,947
354,325

In 2020, all investment income totalling £303,835 was attributable to unrestricted funds (2019: £354,325 to unrestricted funds).

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements

Financial Statements for the year ended 31[st] December 2020

Notes (continued)

4. Publicity & fundraising activities

Salaries (Note 10)
Marketing and communications
Event costs
Support costs (Note 11)		 2020
£
103,661
8,273
-
60,404

172,338
 2019
£
62,834
8,340
1,200
32,554
104,928

In 2020, no fundraising expenditure was attributable to restricted funds (2019: £Nil), the full £172,338 (2019: £104,928) of fundraising expenditure was attributable to unrestricted funds.

5. Charitable activities

Grants to beneficiaries
Costs of programme of visits (Note 10)
Grant to British Association for Performing Arts Medicine
Travel and motor expenses
Eastbourne flat
Website costs
Support costs (Note 11)		 2020
£
2,282,995
103,661
7,500
2,364
3,315
448
60,404

2,460,687
 2019
£
440,380
146,613
6,750
3,803
2,905
3,386
75,958
679,796

Included within cost of programmes are travel costs of £925 (2019: £3,899). Included in grants to beneficiaries are grants made as part of the Emergency Relief Fund totalling £1,965,280 (2019: £Nil).

For both 2020 and 2019 all expenditure on charitable activities was borne from unrestricted funds.

An analysis of grants issued in the year is provided in the Trustees’ Report at the front of these financial statements.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements

Financial Statements for the year ended 31[st] December 2020

Notes (continued)

6. Net investment gains

Realised
Unrealised		 2020
£
(283,382)
1,208,050

924,668
 2019
£
1,813,912
44,845
1,858,757

7. Tangible fixed assets

Cost at 1stJanuary 2020 and at 31stDecember 2020
Depreciation at 1stJanuary 2020 and at 31stDecember 2020
Net book value at 1stJanuary 2020 and at 31stDecember 2020
8.
Investment property
At 1stJanuary 2020
Additions, at cost
Revaluation
Valuation at 31stDecember 2020		 Computers

The 2020 valuation was made by the Trustees, on an open market value for existing use basis.

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PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements

Financial Statements for the year ended 31[st] December 2020

Notes (continued)

9. Investments

Investments
Market value:
At 1stJanuary 2020
Additions, at cost
Disposal proceeds
Net gains on disposals and revaluations
At 31stDecember 2020
Historic cost:
At 31stDecember 2020
Investments at market value comprised:
UK fixed interest securities
Equities
Other investments
Cash		 2020
£’000
14,328
2,801
(5,633)
925

12,421

10,456

2020
£’000
1,752
9,636
1,033
-

12,421
 2019
£’000
12,207
11,586
(11,323)
1,858
14,328
12,730
2019
£’000
1,863
10,766
1,167
532
14,328

All investments are carried at their fair value. Investments in bonds, equities, property and alternative investments are all traded in quoted public markets, primarily the London Stock Exchange. The basis of fair value for quoted investments is equivalent to the market value, using mid-market price. Asset sales and purchases are recognised at the date of trade at cost (i.e. their transaction value).

The significance of financial instruments to the ongoing financial sustainability of the Fund is considered in the financial review and investment policy and performance sections of the Report of the Trustees.

The main risk to the Fund from financial instruments lies in the combination of uncertain investment markets and volatility in yield. The Fund is reliant on dividend yield in part to finance its work and this leads to greater exposure to international companies, the values of which, together with their yield, are exposed to exchange rate risk when converting the holdings into sterling.

The Fund manages these investment risks by retaining expert advisers and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes that are quoted on recognised stock exchanges. The Fund does not make use of derivatives and similar complex financial instruments as it takes the view that investments are held for their longer-term yield total return.

DocuSign Envelope ID: BFAEF92A-2974-48E8-BE43-4529119DCDF5

32

PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements

Financial Statements for the year ended 31[st] December 2020

Notes (continued)

10. Trustees and employees

The Fund considers its key management personnel comprises the Trustees. The Trustees did not receive any remuneration or other financial benefits for the year, directly or indirectly, from the Charity’s funds (2019: £Nil).

15 Trustees (2019: 15) were reimbursed for travel expenses for the amount of £1,867 in the year (2019: £3,803).

Staff are employed by an administration company of the Performing Right Society Limited, who charge the Fund with the total related costs, including VAT. The pension scheme is also administered by that company.

Staff costs include:

Salaries
Social security costs
Pension contributions
Travel costs
VAT disallowed on above costs		 2020
£
161,501
16,977
11,619
925
16,300

207,322
 2019
£
164,923
15,612
11,340
3,899
13,673
209,447

The Fund has 2 full-time staff (2019: 2), 3 part-time staff members (2019: 3) and 3 contracted visitors (2019: 4) and, in addition, uses temporary staff and volunteers as required.

Staff costs are apportioned to the following activities based on an estimate of time spent on each activity.

Publicity & fundraising activities
Charitable activities		 2020
£
103,661
103,661

207,322
 2019
£
62,834
146,613
209,447

DocuSign Envelope ID: BFAEF92A-2974-48E8-BE43-4529119DCDF5

33

PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements

Financial Statements for the year ended 31[st] December 2020

Notes (continued)

11. Allocation of governance and support costs

Support costs are apportioned to the following activities based on an estimate of staff time spent on each activity:

Publicity & fundraising activities
Charitable activities
Included in the above support costs are:
Other support costs:
Accountancy and bookkeeping
Printing, postage & stationery
Sundries
Travel and motor expenses
Strategic review
VAT disallowable
Insurance
Rent and services provided by PRS
Business rates
Governance costs:
Auditor’s remuneration – external audit
Catering for Trustees’ meetings
Impact measurement project
IT costs
Legal fees
12.
Programme-related investments
Loans to beneficiaries
Cyril Wood Court Trust

Loans have been made to Cyril Wood Court Trust (a registered housing corporation, No. L0519) under schemes to provide practical help for the Fund’s older beneficiaries who require sheltered housing.

DocuSign Envelope ID: BFAEF92A-2974-48E8-BE43-4529119DCDF5

34

PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements

Financial Statements for the year ended 31[st] December 2020

Notes (continued)

13. Analysis of funds – current year

Balance at
1stJan
2020
£’000
Unrestricted funds:
Designated funds –
investments
14,542
General funds
587
_
15,129
_
Analysis of funds – prior year
Balance at
1stJan
2019
£’000
Unrestricted funds:
Designated funds –
investments
12,397
General funds
847
_
13,244
Income
Expenditure
£’000
£’000
304
(70)
1,869
(2,632)
_
_
2,173
(2,704)
_
_

Income
Expenditure
£’000
£’000
354
(57)
491
(785)
_
_
845
(842)

 Gains
£’000
938
-
_
938
_
Gains
£’000
1,882
-
_
1,882
 Transfers
Balance at
31stDec
2020
£’000
£’000
(3,066)
12,648
3,066
2,890
_
_
-
15,538
_
_
Transfers
Balance at
31stDec
2019
£’000
£’000
(34)
14,542
34
587
_
_
-
15,129

Analysis of funds – prior year

The above funds relate to PRS Members’ Fund, unincorporated trust registered charity no: 208671. PRS Members’ Fund, CIO registered no: 1181735 did not have funds at the date of the merger.

DocuSign Envelope ID: BFAEF92A-2974-48E8-BE43-4529119DCDF5

35

PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements

Financial Statements for the year ended 31[st] December 2020

Notes (continued)

14. Analysis of net assets between funds – current year

Tangible fixed
assets
Investment
property
Investment
assets
Net current
assets
£’000
£’000
£’000
£’000
Designated funds:
Investments
-
227
12,421
-
_
________
________
________
Unrestricted funds:
General funds
-
-
-
2,890
_
_
_
_
Total funds
-
227
12,421
2,890
_
_
_
_
_Analysis of net assets between funds – prior year
Tangible fixed
assets
Investment
property
Investment
assets
Net current
assets
£’000
£’000
£’000
£’000
Designated funds:
Investments
-
214
14,328
-
_
_
_
_
Unrestricted funds:
General funds
-
-
-
587
_
_
_
_
Total funds
-
214
14,328
587



 Total
£’000
12,648
_
2,890
_
15,538
_
Total
£’000
14,542
_
587
_
15,129

The above funds relate to PRS Members’ Fund, unincorporated trust registered charity no: 208671.

DocuSign Envelope ID: BFAEF92A-2974-48E8-BE43-4529119DCDF5

36

PRS Members’ Fund

Eighty Seventh Annual Report of the Trustees and Financial Statements

Financial Statements for the year ended 31[st] December 2020

Notes (continued)

15. Contingent liabilities – pension scheme

The five staff are not directly employed by the Fund, and given that there is no separate valuation of the scheme’s assets and actuarial liabilities that relate to the Fund’s staff, contributions to the scheme are treated as if the scheme was a defined contribution scheme. Full details of the scheme and its deficit are included in the financial statements of PRS For Music Limited.

Employer contributions are affected by the deficit in the scheme and the Fund has been asked to pay additional annual contributions of approximately £5,000 for the next 15 years, together with a share of the final lump sum payment, estimated at around £75,000. The amount of this future commitment is still subject to negotiation and agreement between the Fund and the scheme operator. As the additional annual contribution amounts could vary and the final lump sum is subject to agreement, it is not possible to reliably measure the current value of the liability and for this reason, a liability has not been recognised in the accounts.

16. Related parties

With the exception of those transactions with Trustees disclosed in note 10, there were no other related party transactions during the year under review (2019: £nil).

17. Operating lease commitments

The Fund had total future minimum lease payments under a non-cancellable operating lease for land and buildings as set out below:

Amounts payable:
Not later than one year
2-5 years
5+ years		 2020
£
42,320
169,281
144,005
355,606		 2019
£
42,320
169,281
186,325
397,926