**Charity number 206801**
## **BENEVOLENT FUND OF THE INCORPORATED SOCIETY OF MUSICIANS (ISM Members Fund)**
**TRUSTEE’S REPORT AND UNAUDITED FINANCIAL STATEMENTS**
_**FOR THE YEAR ENDED**_
**31 AUGUST 2021**
**BENEVOLENT FUND OF THE INCORPORATED SOCIETY OF MUSICIANS (ISM Members Fund)**
## **CONTENTS**
|Reference and Administrative information|1 - 2|
|---|---|
|Report of the Trustee|3 – 7|
|Independent Examiner’s Report|8|
|Statement of Financial Activities|9|
|Balance Sheet|10|
|Notes to the Financial Statements|11 – 15|
**BENEVOLENT FUND OF THE INCORPORATED SOCIETY OF MUSICIANS (ISM Members Fund)**
## **REFERENCE AND ADMINISTRATIVE INFORMATION** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **Trustees**
On 1 October 2015, under a Scheme issued by the Charity Commission, the Incorporated Society of Musicians Trust (‘ISM Trust’) became the sole corporate Trustee of the ISM Members Fund. The ISM Trust is company number 9296727 and registered charity number 1160261.
The Trustees of the ISM Trust are:
Deborah Keyser (appointed Chair from 24 April 2021) Dr Jeremy Huw Williams Professor Christopher Collins (former Chair from 24 April 2021) Vick Bain (future Chair from 24 April 2021) Pauline Black Dr Marius Carboni Dr Michelle Castelletti Nicolas Chisholm MBE Tim Daniell Paul Edlin Reginald Fletcher Ivor Flint (Treasurer) Trevor Ford Professor Stephen Goss Eugene Monteith Professor David Smith Nicky Spence
**Charity registered number**
206801
**Principal office**
4-5 Inverness Mews London W2 3JQ This is also the principal office of the ISM Trust.
1
**BENEVOLENT FUND OF THE INCORPORATED SOCIETY OF MUSICIANS (ISM Members Fund)**
## **REFERENCE AND ADMINISTRATIVE INFORMATION** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
|**Independent examiner**|Amy Healey FCA CTA DChA|Amy Healey FCA CTA DChA|
|---|---|---|
||Lindeyer Francis Ferguson Limited||
||Chartered Accountants||
||North House||
||198 High Street||
||Tonbridge||
||Kent TN9|1BE|
|**Bankers**|National Westminster Bank||
||Portman Square||
||London W1A 1DW||
|**Solicitors**|Bates Wells Braithwaite||
||10 Queen Street Place||
||London||
||EC4R 1BE||
|**Investment managers**|Cazenove Capital Management Ltd||
||12 Moorgate||
||London EC2R 6DA||
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## **BENEVOLENT FUND OF THE INCORPORATED SOCIETY OF MUSICIANS (ISM Members Fund)**
## **TRUSTEE’S REPORT** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
The Trustee presents its annual report together with the financial statements of the Benevolent Fund of the Incorporated Society of Musicians (‘the Fund’) for the year ended 31 August 2021. The Trustee confirms that the annual report and financial statements of the charity comply with the current statutory requirements, the requirements of the Fund’s governing document and 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) (Charities SORP (FRS 102)).
The information set out on pages 1-2 forms part of this report.
## **Structure, governance and management**
The Fund is an unincorporated association which was established on 5 January 1917. It is governed by a Trust Deed which states that the Fund’s object is the relief of necessitous members of the Incorporated Society of Musicians (‘ISM’), former members and widows or other dependants of deceased members.
By a new Scheme issued by the Charity Commission on 1 October 2015, individual members of ISM Council ceased to be Trustees of the Fund and the Incorporated Society of Musicians Trust (‘ISM Trust’, a charitable company limited by guarantee), of which the ISM is the sole member, became the sole corporate trustee of the Benevolent Fund of the Incorporated Society of Musicians (ISM Members Fund, a charitable trust). The three organisations namely the ISM, the ISM Trust and the ISM Members Fund work closely together and are operating under the name “the ISM Group”. The ISM staff administering the Fund were Deborah Annetts (Chief Executive), Sabrina Taylor (Head of Finance and Facilities) and Sarah Osborn (Head of Business Development). The work of the Fund was also supported by the Senior Leadership Team and the Trustee.
## **Objectives and activities**
The Fund continued to implement the new strategy agreed by the Trustee in June 2018 following a review of its activities in March 2017 and the subsequent amendments to its objects that were approved by the Charity Commission in December 2017.
During 2020-21 the Fund continued to prioritise activities to support ISM members through the ongoing COVID19 pandemic. Through a partnership with Help Musicians, £131,400 was distributed in hardship grants to 438 members. Help Musicians assessed applications and administered grants to agreed eligibility criteria that enabled those experiencing financial difficulties to receive financial support to the value of £300.
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**BENEVOLENT FUND OF THE INCORPORATED SOCIETY OF MUSICIANS (ISM Members Fund)**
## **TRUSTEE’S REPORT** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
The Fund also produced a number of resources to support the prevention of poverty:
A blog on managing unpredictable income, ‘Five steps to building financial wellbeing for musical freelancers’ was commissioned from The Money Charity as a precursor to developing further support around managing a fluctuating income.
An online debt advice hub was created through a partnership with StepChange debt charity covering topics such as understanding debt and being chased for money, advice on prioritising debts and managing debts in the event of redundancy. A referral system was also put in place to ensure members could access specialist, bespoke support and advice from StepChange.
Lastly the Fund supported two resources within the ISM’s How To….guide series around aiding performers transition into a teaching career: _How to…Begin teaching music: An overview of the profession_ and _How to…Begin teaching music: A practical guide to becoming an instrumental teacher_ launched in December 2020.
The Fund continued to provide an outsourced 24-hour personal advice and support telephone helpline and associated counselling services available to all ISM members and their dependants. Demand for this service grew during the pandemic with a total of 60 new counselling cases (2020: 43). A total of 379 counselling sessions were delivered across either telephone or online over the year.
The physiotherapy service paused during government lockdowns but resumed operations later in the year. A total of 48 people contacted the service (2020: 31) with 5 people being referred for face-to-face treatment and 32 receiving a bespoke self-management treatment plan supplemented by telephone support. The remainder of members were referred back into the NHS or to specialist providers.
In total, 8 individuals received assistance by way of charitable grants. Also, there were times when applicants to the Fund were signposted to other sources of help, such as medical support, debt advice, welfare benefits, and other charities.
## **Financial Review**
During the reporting period, total income fell by 24.6% over the previous year to £102,061 (2020: £135,364) and expenditure grew by 75.9% to £258,413 (2020: £146,934). During the year under review, the Fund generated a deficit of £156,352 (2020: a deficit of £11,570) before realised and unrealised gains/losses on the revaluation of investments. The net gains on investments were £465,325 (2020: losses of £245,575) due to the markets favourable recovery during the year which were a result of the market reacting to vaccines to combat the continued COVID-19 pandemic. This led to the financial year yielding a surplus after investment gains of £308,973 (2020: a deficit of £257,145).
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**BENEVOLENT FUND OF THE INCORPORATED SOCIETY OF MUSICIANS (ISM Members Fund)**
## **TRUSTEE’S REPORT** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **Donations and legacies**
The Trustee acknowledges with thanks a legacy to the Fund from the estate of the late Miss F J Robson. Total donations and legacies received during the year were £8,867 (2020: £2,306). The Trustee is most grateful to all the individuals who made donations or organised fundraising initiatives.
## **Investments**
The investment objective is to maintain and increase real capital value whilst generating sufficient income to cover the Fund's current expenditure. During the financial year, the COVID-19 outbreak continued to negatively affect our investment income which fell a further 30% during the year as companies continued to withhold dividend payments. With the markets however rallying during the year, the value of the Fund’s investments grew by 7.0% to £3.84million and these investments generated income of £93,194 (2020: £133,058).
## **Charitable activities**
Expenditure on direct charitable activities increased by £111,601 to £242,778, an increase of 85.1% largely due to the introduction of the Fund’s Coronavirus Hardship Scheme which ran between February and August 2021. The Members Fund utilised part of its expendable endowment to fund the scheme which provided financial support for ISM members affected by coronavirus, £131,400 was distributed between 438 members who applied successfully.
During the year, the Fund spent £14,130 (2020: £36,044) on grants to individuals. £39,256 (2020: £36,863) on counselling services and £7,235 (2020: £3,995) on physiotherapy services. Support costs concerning charitable activities were reduced by £3,518, 6.5% during the reporting period.
## **Reserves**
The Fund’s Reserves Policy is to maintain a sufficient level of free reserves to enable normal operating activities to continue over a period of up to 6 months should a shortfall in income occur and to take account of potential risks and contingencies that may arise from time to time. On 31 August 2021, these free reserves (unrestricted funds excluding those represented by investments) totalled £174,076 (2020: £183,511), the equivalent of 8 months (2020: 15 months) of the Fund’s annual expenditure, which is well above the target range and sufficient to support the future plans of the Fund.
The total funds held as of 31 August 2021 were £4.08million (2020: £3.77million). Of these funds, £314,625 (2020: £396,336) were held in an expendable endowment fund and £3.55million (2020: £3.15million) in funds held for restricted purposes in our permanent endowment. The remaining unrestricted funds amount to £218,822 (2020: £223,167).
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**BENEVOLENT FUND OF THE INCORPORATED SOCIETY OF MUSICIANS (ISM Members Fund)**
## **TRUSTEE’S REPORT** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **Compliance**
The Fund is registered as a data controller in its own right at the Information Commissioner’s Office (ICO). All ISM staff working on Fund activities are bound by the provisions of the ISM Group Data Governance Policy introduced across all ISM Group companies in 2018 as part of our activities to ensure compliance with the General Data Protection Regulation (EU) 2016/679 (‘GDPR’) and the Data Protection Act 2018. The Fund continued to be registered with the Fundraising Regulator as part of our commitment to best practice and transparency in fundraising. New Trustees to the ISM Trust who constitute the Trustee received guidance in relation to trustee duties and charity governance during the course of the year.
## **Future plans**
The Fund will review the physiotherapy service in the upcoming financial year. It is also hoped that the development of a hearing health service, paused due to COVID-19, can be resumed.
## **Trustee’s Responsibilities Statement**
The Trustee is responsible for preparing the Trustee’s report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustee is required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and accounting estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustee is responsible for keeping proper 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, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. It is 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.
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## **BENEVOLENT FUND OF THE INCORPORATED SOCIETY OF MUSICIANS (ISM Members Fund)**
## **TRUSTEE’S REPORT** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
This report was approved by the Trustees of the ISM Trust acting on behalf of the Trust as the Fund’s sole corporate Trustee on 16 February 2022 and signed on their behalf by:
**Deborah Keyser Chairman of the ISM Trust**
**Deborah Annetts Chief Executive Officer**
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**BENEVOLENT FUND OF THE INCORPORATED SOCIETY OF MUSICIANS (ISM Members Fund)**
## **INDEPENDENT EXAMINER’S REPORT** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
I report to the Trustee on my examination of the accounts of the Benevolent Fund of the Incorporated Society of Musicians (the Fund) for the year ended 31 August 2021.
## **Responsibilities and basis of report**
As the charity Trustee of the Fund you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Fund’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner’s statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the Fund as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **Amy Healey FCA CTA DChA Lindeyer Francis Ferguson Limited**
Chartered Accountants North House 198 High Street Tonbridge Kent TN9 1BE
22 February 2022
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## **BENEVOLENT FUND OF THE INCORPORATED SOCIETY OF MUSICIANS (ISM Members Fund)**
## **STATEMENT OF FINANCIAL ACTIVITIES** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
|**_2021_**
**_£_**
**Income from:**
Donations and legacies
8,867
Investments
93,194
**Total income**
**102,061**
**Expenditure on:**
Raising funds
Investment management fees
173
Charitable activities
**2**
111,378
**Total expenditure**
**111,551**
**Net expenditure**
( 9,490)
Net gains/(losses) on investments
5,145
**Net movement in funds**
**( 4,345)**
**Reconciliation of funds**
Total funds brought forward
223,167
**Total funds carried forward**
**218,822**
**_Unrestricted_**
**_funds_**
**Note**|**_2021_**
**_£_**
-
-
**-**
1,728
131,400
**133,128**
( 133,128)
51,417
**( 81,711)**
396,336
**314,625**
**_Expendable_**
**_endowment_**|**_2021_**
**_£_**
-
-
**-**
13,734
-
**13,734**
( 13,734)
408,763
**395,029**
3,150,838
**3,545,867**
**_Permanent_**
**_endowment_**|**_Total_**
**_funds_**
**_2021_**
**_£_**
8,867
93,194
**102,061**
15,635
242,778
**258,413**
( 156,352)
465,325
**308,973**
3,770,341
**4,079,314**|**_Total_**
**_funds_**
**_2020_**
**_£_**
2,306
133,058|
|---|---|---|---|---|
|||||**135,364**|
|||||15,757
131,177|
|||||**146,934**|
|||||( 11,570)
( 245,575)|
|||||**( 257,145)**|
|||||4,027,486|
|||||**3,770,341**|
There were no restricted funds in the current or preceding periods.
9
## **BENEVOLENT FUND OF THE INCORPORATED SOCIETY OF MUSICIANS**
## **(ISM Members Fund)**
## **BALANCE SHEET** _**AS AT 31 AUGUST 2021**_
|**Note**
**_£_**
**Fixed assets**
Investments
**4**
**Current assets**
Debtors: prepayments and accrued income
3,353
Cash at bank
254,336
257,689
**Creditors:**amounts falling due within one year
**5**
( 15,013)
**Net current assets**
**Total net assets**
**The funds of the charity**
Endowment funds
Expendable endowment
Permanent endowment
Unrestricted funds
**Total funds**
**6**|**_2021_**
**_£_**
3,836,638
242,676
**4,079,314**
314,625
3,545,867
3,860,492
218,822
**4,079,314**|**_£_**
3,378
188,522
191,900
( 8,389)|**_2020_**
**_£_**
3,586,830
183,511|
|---|---|---|---|
||||**3,770,341**|
||||396,336
3,150,838|
||||3,547,174
223,167|
||||**3,770,341**|
The financial statements were approved by the trustees of the ISM Trust acting on behalf of the Trust as the Fund’s sole corporate Trustee on 16 February 2022 and signed on their behalf by:
**Deborah Keyser Chair of the ISM Trust**
**Deborah Annetts Chief Executive**
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**BENEVOLENT FUND OF THE INCORPORATED SOCIETY OF MUSICIANS (ISM Members Fund)**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **1 Accounting policies**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **1.1 Basis of preparation**
The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments, and in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019) - (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Benevolent Fund of the Incorporated Society of Musicians meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). The financial statements are presented in pounds sterling and rounded to the nearest pound.
There are no material uncertainties about the charity's ability to continue, and so the going concern basis of accounting has been adopted.
## **1.2 Going concern**
Whilst COVID-19 continues to influence the company’s activities, the Trustees have a reasonable expectation that the business will continue as a going concern as it will take action to alleviate the risks caused by reducing future expenditure or by utilising its reserves.
## **1.3 Status**
The Benevolent Fund of Incorporated Society of Musicians is an unincorporated charity governed by a Trust Deed and is registered with the Charity Commission for England and Wales. The address of the registered office is 4-5 Inverness Mews, London, W2 3JQ.
## **1.4 Income**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. For donations this is usually on receipt. Investment income is recognised when it is receivable.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Fund that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
11
**BENEVOLENT FUND OF THE INCORPORATED SOCIETY OF MUSICIANS (ISM Members Fund)**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **1 Accounting policies continued**
## **1.5 Expenditure**
Expenditure is recognised when a present legal or constructive obligation exists at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation, and the amount can be measured or estimated reliably. It is inclusive of any VAT which cannot be recovered.
Grants payable are payments made to beneficiaries in the furtherance of the charitable objectives of the Fund. The grants are accounted for where either the Trustee has agreed to pay the grant without condition and the recipient has a reasonable expectation that they will receive a grant, or any condition attaching to the grant is outside the control of the Fund.
## **1.6 Investments**
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured that 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 revaluation and disposals throughout the year.
## **1.7 Financial Instruments**
The charity has financial instruments of a kind that qualify as basic financial instruments. The charity's short term debtors and creditors are measured at their settlement value.
## **1.8 Fund accounting**
The permanent endowment fund is the capital of the members fund and must be held permanently.
The expendable endowment consists of funds held as capital of the members fund. However the Trustee has discretion over the use of the funds and these can be expended if required. During the year, some funds were used to provide grants under the Coronavirus Hardship scheme.
Unrestricted funds are those funds which are available for use at the discretion of the Trustee in furtherance of the general objectives of the charity and which have not been designated for other purposes.
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**BENEVOLENT FUND OF THE INCORPORATED SOCIETY OF MUSICIANS (ISM Members Fund)**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
|**2**
**Expenditure on charitable activities**
Supporting physical, mental, and financial health:
Grants to individuals
Grants to individuals - Coronavirus Hardship scheme
Counselling helpline costs
Physiotherapy
Support costs (see below)
Support costs are made up as follows:
Management charges
Other costs
Governance costs:
Legal fees
Independent examination fees|**_2021_**
**_£_**
14,130
131,400
39,256
7,235
50,757
242,778
37,205
763
10,299
2,490
50,757|**_2020_**
**_£_**
36,044
-
36,863
3,995
54,275|
|---|---|---|
|||131,177|
|||39,925
8,517
3,403
2,430|
|||54,275|
All grants are for the relief and prevention of poverty amongst ISM (Incorporated Society of Musicians) members and the dependents of deceased members. During the year, the charity made grants to 8 individuals (2020: 20). ISM ran a Coronavirus Hardship Scheme during the year, providing one-off grants to 438 individuals (2020: none).
All expenditure on charitable activities in 2020 was unrestricted.
## **3 Staff and Trustee costs**
The members' fund has no employees, and therefore none earning more than £60,000 (2020: none). The Trustee (and its Trustees) did not receive any remuneration during the year in regards to the Fund, and the Trustee (and its Trustees) did not receive reimbursed expenses during the year (2020: one Trustee of the Trustee was reimbursed £12 travel expenses in relation to the Trust).
The key management of the charity includes the Trustee, the ISM Chief Executive, the ISM Head of Business Development and the ISM Head of Finance & Facilities. The aggregate amount of remuneration recharged from ISM in respect of key management was £24,083 (2020: £24,908). Other staff costs have also been recharged from ISM, and there were no members of staff engaged in the members' fund's activities other than those recharged from ISM (2020: none).
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**BENEVOLENT FUND OF THE INCORPORATED SOCIETY OF MUSICIANS (ISM Members Fund)**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **4 Investments**
|**Listed investments**
Market value at 1 September 2020
Additions at cost
Disposals at carrying value
Movements in cash capital account
Change in market value
Market value at 31 August 2021|**_2021_**
**_£_**
3,586,830
436,740
( 817,712)
165,454
465,326
3,836,638|**_2020_**
**_£_**
3,848,361
1,813,259
( 52,060)
( 245,574)
( 1,777,156)|
|---|---|---|
|||3,586,830|
At the balance sheet date £165,454 cash was held within the investment portfolio (2020: none).
|**5**
**Creditors due within one year**
Trade creditors
Grants payable
Accruals
Amount due to the Incorporated Society of Musicians|**_2021_**
**_£_**
50
3,000
7,027
4,936
15,013|**_2020_**
**_£_**
-
5,722
2,667|
|---|---|---|
|||8,389|
## **6 Analysis of net assets between funds - current year**
|Investments
Net current assets|**_2021_**
**_£_**
44,746
174,076
218,822
**_Unrestricted_**
**_funds_**|**_2021_**
**_£_**
246,025
68,600
314,625
**_Expendable_**
**_endowment_**|**_2021_**
**_£_**
3,545,867
-
3,545,867
**_Permanent_**
**_endowment_**|**_Total_**
**_funds_**
**_2021_**
**_£_**
3,836,638
242,676|
|---|---|---|---|---|
|||||4,079,314|
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**BENEVOLENT FUND OF THE INCORPORATED SOCIETY OF MUSICIANS (ISM Members Fund)**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **6 Analysis of net assets between funds - prior year**
|Investments
Net current assets|**_2020_**
**_£_**
39,656
183,511
223,167
**_Unrestricted_**
**_funds_**|**_2020_**
**_£_**
396,336
-
396,336
**_Expendable_**
**_endowment_**|**_2020_**
**_£_**
3,150,838
-
3,150,838
**_Permanent_**
**_endowment_**|**_Total_**
**_funds_**
**_2020_**
**_£_**
3,586,830
183,511|
|---|---|---|---|---|
|||||3,770,341|
## **7 Control**
The parent charity is the Incorporated Society of Musicians Trust, a charitable company limited by guarantee and registered in England and Wales (registered number - 9296727, charity number - 1160261). The Incorporated Society of Musicians Trust provides education and professional development for those involved in the arts and particularly music.
## **8 Related party transactions**
At the balance sheet date, the charity owed £4,936, including VAT, (2020: £2,667) to the Incorporated Society of Musicians (ISM) in respect of expenses paid on behalf of the charity. Re-charged expenses totalled £37,205, including VAT, (2020: £39,925) and relate to salary costs and management charges reflecting time spent on Benevolent Fund of the Incorporated Society of Musicians by the staff at ISM. The ISM is considered to be a related party as it is the sole member of the charity's corporate trustee.
## **9 Contingent asset**
As at 31 August 2021, the charity had been notified of one residuary legacy which has not been recognised in the financial statements as the grant of probate occurred subsequent to the balance sheet date. The amount of the legacy is expected to be in the region of £92,000.
During the year the charity were notified of a further legacy, where £2,500 was due after all the liabilities of the estate were settled. The settlement of liabilities had not been completed prior to the Balance Sheet date, and so the income has not been recognised in these financial statements.
15