Charity Registratlon No. 233700 The London Symphony Orchestra Endowment Trust Report and Flnanclal Statement5 31 March 2021
The London Symphony Orchestra Endowment Trust Report and financial statements 2021 Contents Page Officers and professSonal advisers Trustees, report Statement of trustee5' re5ponsibS1itles Independent auditorfs report Statement of Financial Actwities io Balance Sheet li Statement of Cash Flows 12 Notes to the flnancial statements 13
The London Symphony Orchestra Endowment Trust Report and financial statements 2021 Officers and professional advisers Trustees Charles Clark cla Duckworth Hon Sir Rocco Forte Lady Aliai Forte Rlchard Hardie James Lennox Mackenzie OBE Kathryn McDowell CBE Lady Wendy Pam)ley Harriet Rayfield Daniel R05S John Shakeshaft Ichairmanl (resigned 26 February 20201 IAppolnted 4 June 20201 Secretary Rikesh Shah Registered Office Barbican Centre Silk Street London EC2Y 8DS Investment managers Saunderson House l Long Lane London ECIA9HF UBS Wealth Management l Fin5bury Avenue London EC2M 2AN Bankers Lloyds TSB Bank plc 34 Moorgate London EC2R 6PL Sollcltors Veale Wasbrough Vizards LLP Orchard Court OrchaTd Lane rlstol BSI 5WS Audltor Haysmacintyre LLP, 10 Queen Street Place, London, EC4R IAG
The London Symphony Orchestra Endowment Trust Tru5tees' report The Trustees present their annual report and the audited financial statements for the year ended 31 March 2021. Structurei governance and management Constitution The London Symphony Orchestra Endowment Trust I'the Trust") was originally established by a deed of settlement dated 12 September 1963 whlch ha5 subsequently been amended by a trust deed dated 22 October 1991, a Deed of Variation dated 5 July 2006 and a Deed of Amendment dated l October 2010. Trustees and organisation The Trustees have the power to appoint further Trustees, subject to there being a minimum of 3 and a maximum of 10 Trustees of whom not more than 4 may be directors of London Symphony Orchestra Ltd 1.the LSO"). Non-LSO Trustees must always ¢onstltute a majority of the Trustees. Subject to these limits, new Trustees are recrulted on the basis that by virtue of their knowledge, experience and qualifications they will be able to make a contribution to the pursuit of the objects or the management of the Trust. Induction and training 15 provided to Trustees as necessary. Names of the Trustees who served during the year and in office at the date of this report are listed on page one. The Trustee5 meet twice a year and, in addStion, an Investment Comrnittee meets during the year with the investment managers to review the perfonmance of the investment portfolio and to discuss the nvestment approach. Connected charity The LSO (Charity Number 2323911 15 a connerted charbty of the Trust by virtue of the fart that the two charities have shared objectives and administration. However, the Trust Is fully independent of the LSO and has its own Board of Trustees. The LSO'S subsidiary companies, LSO Productions Ltd and LSO Live Ltd are considered to be related parties to the Trust. Objertives ond actlvities The general purpose of the Trust is to support the objects of the LSO, namely to p¥omote, maintain and advance education, particularly musical education and to encourage and advance the arts Including muslc, drama, mime, dancing and singing. The Trust'5 primary alm is to build an endowment fund which will generate a return that can be used to 5UPPOrt the LSO over the long-term as this is considered essential to being èble to Secure the LSO'S future. The Trustees, principal focus Is therefore to ensure continued growth in the value of the endowment through receipt and investment of donatlons as well as sound investment management which leads to capital growth. In addltlon to the endowment fund, the Trust has received funds raised from the Lord Mayorfs Appeals Sn 2004, 2010 and in 2017. In 2011, the Trust received a donation to build Anglo-japanese cultural relations by sijpporting initiatives such as the LSO'S touring activity in japan and to provide support for Japanese music Students to assist them In working with the LSO. This donation is held in a restricted fund with grants made to the LSO to 5UPPOrt relevant activity.
The London Symphony Orchestra Endowment Trust Trustees, report In 2012, the Trust was successful in rts applicatlon to Arts Council England's Catalyst Endowment Scheme. This was a matched funding initiative through which the Trust secured income of almost £6m and this in turn released funding from the Arts Councll of a further £2.9m during the campaign which ended in July 2015. The funds from thls campalgn, which is l(nown as Moving Music, are invested as a restricted long.term endowment with the income generated used to capture audio and audio-visual recordings of the LSO'S concert performances and to disseminate them to a wider audience. The Trust also currently provldes ftnanclal support for the LSO'S core activities as well a5 loans to LSO members to a55iSt them in purchasing musical instruments. The Trust does not use the seNices of volunteers and the minimal operational tasks of the Trust are undertaken by LSO staff. Public benefit The Trust provide5 benefit to the public indirectly by providing funding to the LSO and thereby supporting a world class orchestra. The LSO'S core artivities encourage the education of, and participation irb, music by the public at large. This is achieved through public concerts which have accessible ticket prl¢es, some of which are broadcast on the radio, television and the internet and through audio recordings which are widely avallable at low cost. A significant proportion of the Trust's grants to the LSO also support the LSO'S education and community activities, many of which Involve no payment by participants. The Trustees confirm that they have referred to the Charity Commlssion's guidan on public benefit and they believe that the support provlded to the LSO provldes benefit to a wide section of the public. Achievements and performance Investment portfolio The Trust 15 an endowment trust and as such invests its assets with a view to both capttal appreclatlon and the generation of income to support its charitable attlvSties. There are no restrictions on the Trust's power to invest. Saunderson House was appointed as the Trust's Investment managers on I, April 2016. However, UBS continues to manage three remaining funds and as they become Ilquld are being transferred to Saunderson House to be managed with the rest of the Snvestment portfolio; these funds are expected to be fully liquidated by March 2022. The investment strategy 15 set by the Trustees in dlscussion with the investment manager and this strategy is reviewed regularly. Within the overall strategyi the investment manager takes the decisions on selection, retention and realisation of investment5. The value of the investment portfolio rose to £18,604,675 at the year-end reflectSng addltions of £1,517,488, disposals of £1,172,677 and unrealised gains of £3,268,614. Investment performance reflected market conditions and portfolios are appropriately posftio¢)ed to meet agreed investment mandates. A5 at 30 September 2021 the investment portfolio was valued at £19,866,289. Fundraising During the year, the Trust began a fundraising campaign known a5 the Always Playing Appeal to support the Lso's recovery from the Covid-19 pandemic and to support its musicians. As the LSO emerge5 from the most challenging period of a generation, it is facing the most financially challenging years in its history. To sustain the Orchestra through the next five year5, the aim of the Always Playing Appeal is to preserve the artSstic excellence of the LSO'5 rnusicians and allowing them to perform together again on stage, as this is the very essence of an Orchestra.
The London Symphony Orchestra Endowment Trust Trustees, report As at September 2021, Some £2.3m had been rdised towards the Always Playing Appeal. The Trustees and L50 are hugely grateful to the lead donors to the Appeal, Alex and Elena Gerko, and to all those who have chosen to 5UPPOrt the Appeal so far. The other main focus of fundraising in recent years has been to prornote legacy giving amongst the LSO'S supporters and audlence5. The Trust dld not engage the use of third party lundraisers. Gronts During the year the Trust donated £295,49912020'. £487,000) to LSO Productions Ltd which is a subsidiary of the LSO, this grant was a contribution towards LSO Discovery'5 education and communlty projects which are in line with the Trust's key objectives. Donations of £186,631 were made to LSO Ltd12020-. £75,000) and a grant of £158,01612020.' £147,500) made to LSO Live Ltd which Is a150 a subsidiary of the LSO. A further grant of £12,500 was made in the year from the Anglo-japanese fund to support the Japanese music student5 in their work with the LSO12020.' £12,500). Loons to Players The Trust continued to offer loans to members of the LSO to assist them in the purchase of instruments. No new loans were made to players during the year12020: £90,601). At the year-end, 24 players had outstanding loans from the Trust,. further details are shown in Note 14 to the Financial Staternents. Flnancial review Total income received in the year was £2,312,13112020- £599,915), the majority of whith related to general donations, legacies, gift aid and income from investments. Expenditure of £748.97512020'. £819,805) was in line with expectations and related primarily to grants (see above) and investment management fees. Gains in the value of the investment portfolio were £3,048,994 12020: Losses of £2,044,546). Following reinvestment of income and surplus cash, the value of the portfolio at the year-end was £18,604,69912020'. £14,991,274). The Trust's total reserve5 increased from £16,108,276 to £20,720,426 at the year-end reflecting Income and expenditure for the year and gains on the investment portfolio. Reserves policy The Trust's liquid funds are considered to be its unrestricted net assets less fixed assets, ènd le55 any loans issued to the London Symphony Orchestra or to Its members. Restricted and Endowment funds are not considered to be part of the Trust's free reserves because of the conditions regarding the use of those funds. As the Trust ha5 minimal administrative overheads and no on-going liabilities, the reserves policy is to maintain liquid fund5 at a low level of up to 5% of total unrestricted net assets. However, since the start of the Covid-19 pandemic, the Trust has temporarily held Surplus cash pending payment of grants to the LSO, particularly in relation to all funds raised as part of the Always Playlng Appeal. At the year-end, liquid funds under the above definition amounted to £1,009,240 12020- £680,490). In addition, a further £2.252,31712020.. £782,517) of unrestricted assets within the investment portfolio were held a5 cash at the year-end and were available for drawdown at short notice if needed. The Trustees review levels of reserves on an annual basls and plans for utilising free reserves to support the objects of the LSO as outlined on pa6e 2 of this report.
The London Symphony Orchestra Endowment Trust Trustees, report Rlsk revlew The major risks to which the Trust is exposed, as identified by the Trustees, have been VieWed and system5 have been established to mitigate those rlsks. The primary risks relate to protecting the value of the Trust's investment portfolio and other asset5. Trustees delegate management of this risk to professional investment managers. Saunderson House, wlth oversight by the Investment Committee consisting of five of the Trustees. Many factors affecting the achievement of the Trust's objectives relate to economic factDrs such as movement in share prices, interest rates, exchange rates and inflation are largely outside the Trust's Control so can only be mitigated to a certain degree. The Trustees are aware of the potential on-going impacts of the CDvid-19 pandemic on the value of the Investment portfollo. However, the Trust is a long-terrn investor and currenilv has no plans to realise investments. Plans for the future The Trustees continue to seek to secure further donations towards the Always Playing Appeal and for other purposes, to increase the value of the Investment portfolio in order to increase over time the value of grants made to support its charitable objectives. The Trust also continues to seek to increase the number of individuals who plan to donate a le8acy to the Trtjst and the Trustees have been notified by a number of indlviduals of pledged legacles of varying slzes. The Trust will Continue close monitoring of the investment portfolio. The policy of making grants to the LSO, LSO Productions Ltd and LSO Live Ltd is expected to continue. Golng concern At the year-end the Trust has slgnificant net assets and minlmal liabilities and operatlng costs. Grants are only awarded if sufficient funds are available to fund the necessary payments. Despite the on-going impacts of the pandemic, and havlng revlewed expected future cashflows, the Trustees have a reasonable expectation that the Trust has adequate resource5 to continue its activities for the foreseeable future and consider that there were no materlal uncertainties over the Trust's financial viability. Accordlngly, the Trustees continue to adopt the going concern basis in preparing the financial statements. Fundraislng approach The Trust subscribes.to principles of fundralsing best practice by committing to high standards, and being clear, honest, open, respectful, fair and reasonable, and accountable and responsible. The Trust is registered with the Fundraising Regulator and adheres to the standards of the Code of Fundraising Practice. No complaints were received about the Trust'5 fundraising practices during the year.
The London Symphony Orchestra Endowment Trust Trustees, responsibilities statement The Trustee5 are responslble for preparlng the Trustees, Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generallv Accepted Accounting Practlcel, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" The law applicable lo charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair vlew o* the state of affairs of the charity and Lif the incominE resources and application of resour$ of the charity for that period. In preparing these flnancial statements, the trustees are required to.. select suitable accountlng policies and then apply them consistentlvi obseNe the methods and prlnciples in the Charlties SORP,. make judgments and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed,. and prepare the financial statements on the going concern basi5 unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the fSnancial position of the charity and enable them to ensure that the financlal statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provision5 of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularitie5. The tiustees are respDnslble for the maintenance and integrity of the charity and financial informatlon included on the charlty'5 website. Legislation in the United Kingdom governing the preparation and dis5eminatSon of financial statements may differ from legislation in other jurisdictions. Signed on behalf of the Trustees Charles Clark Chairman 8 November 2021
Independent auditor's report to the Trustees of The London Symphony Orchestra Endowment Trust Opinion We have audited the financial statements of The London Symphony Orchestra Endowment Trust for the vear ended 31 March 2021 which comprlse statement of financSal artivities, the balance sheet, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financlal Reporting Standard app11cable In the UK and Republic of Ireland Iunited Kingdom Generally Accepted Accounting practi). In our opinion, the financial statement5- give a true and falr view of the State of the charitvs affairs a5 at 31 March 2021 and of the charity's net movement in funds for the year then ended,. have been properly prepared In accordance with United Kingdom Generally Accepted Accounting practi,. and have been prepared in actordance wlth the requirements of the Charities Act 2011. Basls for opinion We have been appointed as auditor under section 144 of the Charltles Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditlng IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs respon5ibilitie5 for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirement5 that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethlcal responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the firiancial statements, we have concluded that the Trustees, use of the going concern basis of accountinE in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not IdentSfied any material uncertalnties relating to event5 or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a eoing concern for a period of at least twelve month5 from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees wlth Spect 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 Tru5tees' Annual Report. Our oplnion Dn the financial statements doe5 not cover the other information and, except to the extent otherwlse explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection wlth our audit of the financial statement5, our responsibility is to read the other information and, in doing so, conslder whether the other informatlon Is materially inconsSstent with the financial statements or our knowledBe obtained in the audEt or otherwise appears to be materially
Independent auditorfs report to the Trustees of The London Symphony Orchestra Endowment Trust misstated. If we identify such material inconsistencies or apparent rllaterial misstatement5, we are required to determine whether there is a material misstatement in the financlal statements or a material misstatement of the other informat1on. If, based on the work we have performed, we conclude that there Is a material mlsstatement 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 exceptlon We have nothing to report in respett of the following matters in relation to which the Charities IAccounts and Reports1 Regulations 2008 require u5 to report to you if, in our opinion.. adequate accounting records have not been kept by the charityi or sufficient accounting records have not been kept,. or the charSty financial statements are not in agreement with the accounting record5 and returns- or we have not received all the information and explanations we requSre for our audit. Responslblllties of Trustees for the financial Statements As explained more fully in the Trustees, responsibilities statement set out on pa8e 6, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a twe and fair view, and for such internal control as the Trustees determine 15 necessary to enable the preparation of financial statement5 that are free from rnaterlal misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charlty's ability to continue as a going concern, di5closin& as applicable, matter5 related to going concern and uslng the going concern basis of accounting unless the Trustees elther intend to liquidate the charity or to cease operations, or have no realistlc alternative but to do so. Auditorfs responslbilities for the audit of the flnancial statemènts Our objectives are to obtaln reasonable assurance about whether the financlal statements as a whole are free from materlal misstatement, whether due to fraud or error, and to issue an auditorf5 report that includes our opinion. Re350nable assurance Is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material rnisstatement when it exists. Misstatements can arise from fraud or error and are considered materlal If, individually or in the aggregate, they could reasonably be expected to influence the econornic decisions of users taken on the bas of these financial statements. 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.. Based on our understanding of the charlty and the environment Sn which it operate5, we identified that the principal risks of non-compliance with laws and regulations related to the charltles act, and we considered the extent to which non-compliance Thight have a material effect on the financial statements. We also considered those laws and regulations that have a direct Smpact on the preparation of the financial statements such as the Charlties Act 2011 and consider other factors such as income taxi payroll tax and sales tax.
Independent auditor's report to the Trustees of The London Symphony Orchestra Endowment Trust We evaluated management's Incentives and opportunitie5 for fraudulent manipulation of the financial statements (including the risk of override of controlsl. Audit procedures performed by the engagement team included.. Inspectlng correspondence with regulators- Discussion5 Wlth management including consideration of known or suspected instances of non-compllance with laws and regulation and fraud- Reviewing the controls and procedures of the charity relevant to the preparation of the flnanclal statements to ensure these were in place throughout the year, including during the Covid-19 remote working period,- Evaluating management's controls designed to prevent and detect irregularities,. Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions, and Challenging assumptions and judgements rnade by management in their critical accountlng estimates in particular valuation of the stock held for auction. A further description of our responsibilities ft)r the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.or auditorsres onsibiltties. This description forms part of our auditor's report. Use of our report This report Is made solely to the charltls Trustees, as a body, in accordance wlth section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we mlEht 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 hy law, we do not accept or assume responsibility to anyone other than the charit$ Trustees as a body for our audit work, for this report, or for the opinions we have formed. Haysmacintyre LLP Statutory Auditor5 10 Queen Street Place London EC4R IAG Date.. 10 November 2021 Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
The London Symphony Orchestra Endowment Trust Statement of Financial Activitles Period ended 31 March 2021 Note 2021 Unrestrlcted funds 2021 2021 Restrlcted Endowment funds fnrf5 2021 2020 Total fund5 Total funds Incorne and endowmentsfrorn.. OonatSons 3Dd legacies 2,002,337 2,002,337 146.632 1.704 451,579 Investment Income 46.485 263,309 309,794 Total income 2,048,82Z 263,309 2,312,131 599,915 Expenditure Expendlture on: Ralsln8 funds Charltable actlvltles 117,4311 1176.3101 117.2911 1482.4911 155,4521 190,1741 1658,8011 191,9501 1727.8551 Total expendlture 1193,7411 1499,7821 155,4521 1748,9751 1819,805 Net galns/llosse51 on investment5 598,977 541,2 I.8,727 3,048,994 12.044.5461 Net lexpendlturell Income 2,454,058 304A16 1,853,275 4,612,150 12,264,4351 Nee movement In furlds 2,454,058 304,816 1.853,27S 4,612.150 12,264,435) Reconclllatlon of funds Total funds brought forward 4,565,749 2,781,700 8,760,827 16,108,276 18,372,712 Total funits ¢arrled forward 7,019.807 3,086,517 10,614,102 20,720,426 16,108,276 There were no other recognlsed gains or losses other than as shown above. All Income and expertdItu derNe from continulng activities. See Note 3 for comparative Statement of Financi31 Activitles ènalysed by funds io
The London Symphony Orchestra Endowment Trust Balance Sheet As at 31 March 2021 2021 2021 2021 ZDZI zozo Total Unrestricted funds Restrlcted Endowment Total funds lunds funds fund5 Note Flxed assets Tangible assets Investment asset5 li 545,000 5,224,279 157,960 545,000 18,604,699 157.960 545,000 14,991,274 232,714 12 2,766.318 10.614.102 Loans 13 Total flxed assets 5,927,239 2,766,318 10,614,102 19307,659 15,76B,gB8 Current assets Debtors.. amounts falling due within one yÈar Lo>ns Cash at bank 14 122,308 34,412 1,009,241 262.444 384,752 34,412 1.066.996 51,617 13 57,755 293,491 Total current assets 1,165,961 320,199 1,486,160 345,108 Creditors.. amounts falling due wlthln one year 15 173,3931 173,3931 15,8201 Net current as5et5 1,092.568 320,199 1,412.767 339,288 Total net a55etS 7,019.807 3,086,517 10,614,102 20,720,426 16,108,276 Total funds of the charlty Funds broughtforward 16 4.565,749 2,781,700 8,760,827 16.108,276 18.272.712 Excessllshortfalll of Income over expenditu foi the year 1,855,081 1236,4731 155.4521 1,563,156 1219,8901 Rea115ed and unreallsed Increase I Idecre3sel In the value of Investment assets 598,977 54L,290 1,908.727 3.048.994 12,044.5461 Funds carrled *orward 7,019,807 3,086,517 10,614,102 20,720,426 16,108,276 The notes on page5 13 to 23 forrn part of these accounts. Approved by the trustÈes on.. 8 November 2021 Signed on behalf of the 8oard of Trustees CLL QLI Charles Clark Chairman li
The London Symphony Orchestra Endowment Trust Statement of Cash Flow5 Year ended 31 March 2021 2021 2020 Note5 Cash used in operating actlvttles 808.522 11,088,393) Cash flows from Inve5tln8 actlvltles Interest from Investments Cash proceeds from thÈ Sale of investments Purchase ol investments Purchase of fixed assets Incre35e/ldecreasel In cash and cash equlvalents In the year 309,794 1.172,677 11,517,488) 451,579 892,058 1129,1461 1155,0001 128.9021 773,505 Cash and cash equivalent5 at the be8lnnln8 of the year 293,491 322.393 Total ¢?5h ond cash equlvalents 8t the end of the year 1,066,996 293,491 Reconclllatlon of net movement In lund5 to net cash flow from Dperating artivitie5 2021 2020 Net movement in funds Unreallsed IEainsl/losses on Invesrments Dlvidend and Interest inco frorn investments Decre8se/l1ncse1 in loan5 Ilncreasel In debtors Increase in credltors 4,612,150 13,268,614) 1309.7941 40.342 1333,1351 67.573 12,264,4351 1.684,839 1451.5791 113,8521 143,7211 355 Net cash used In operdtlng actlvltles 81)8,522 11.088,3931 Analysls of net fund5 2021 2020 Cash at bank and In hand 1,066,996 293,491 12
The London Symphony Orchestra Endowment Trust Notes to the flnancial statements Year ended 31 March 2021 l Accountlng poll¢les al Ba$ls of preparatlon The linanclal statements have been prepared in 3ttordance wlth the Financial Reportlng Standard applicable In the UK and Republic ol Ireland IFR51021. the StètemÈnt of Recommended Practice appllcable to charities prep3ring their accounts in accordanTr wlth the Financial R@portlng Standard applicable In the UK and Republic of Ireland IFRS 1021 effectwe L January 2015. The flnanclal statements have been prepared to give a 'true and fairf view and have departed from the Charities IAccount5 and Reports) Regulatlons 2008 only to the extent requlred to providÈ a 'true and f81r view,. This departure has involved fo11owlng Accounting and Reportlng by Charltle5 preparing thelr account5 In 3ccordance with the Flnancial Reporting 5tand8rd applicable in the UK and Republic of Ireland IFRS 1021 issued on 16 July 2014 rather than the Accountlng and Reporting by chartIeS.. Ststement of Recommended PTattlo effectlve from L Aprll 2005 which has slnce been withdrawn. The financial statements are drawn up under the hlstorlcal cost conventlon excepr that Investrnents are carrled at falr value. TheTrust meets the delinltlon of a Publlc Benefit Entity under FRS 102. bl Preparatlon of account5 on a going concern ba51s The flnancial ststements have been prepared on the basls that the Trust Is and will remain a golng concern for the foreseeable futu. At the year-end the Trust has slgnllicant net assets and minimal li8bi1itles and operating costs. Grant5 a only awarded rf suffi¢lent funds are avallable to fund the necessary payments. Despite the on-Eolng impact5 of the p4ndemlc. and having revSewed expected futu cashflows. the frustees hèvÈ 3 reasonable expectstion that the Trust has adequate resources to continue actlvltles for the foreseeable future and consider th3t there were no material unrtaIntleS over the Trust's financlal viability. I In¢ome Incorne Is rewgnlsed when the charily hès entitlement to the funds. any performance ¢ondltlons attached to the item of Income have been met, It Is probable that the income will be received and the amount can be measured Donatlon5. are recogn15ed when the Trust ha5 been notlfled In wilting of both the amount and settlement date. In the event that a donatlon Is subject to condittons that require a level of performance before the charlty Is entltled to the funds, the income is deferred and not recognised until either those condltions are fully met, or the fulfllment of those condlrions Is wholly withln the control of the charlty and it Is probable that those conditions will be fulfSlled In the reporting period. Legacy gifts are recognlsed on a case by Case bas15 followinK the granting ol probate when the administratorlexecutor for the estate has communkated in writing both the amount Bnd sètrlement date. In the event that the gift 15 in the form of an 355et other than cash or a flnanclal assÈt traded on a recogni5ed stock exchange. recognition is subject to the value of the glft belng rellably measurable wlth a degree ol reasonable accuracy and the titlÉ to the asset hawng been transferred to the charSfy. Investment Income and interest recelvable are recognlsÈd on an accruals bas1S. dl Funds The fjeneral Fund is 3 general unrestrfcted fund and repTesent5 fund5 whlch are expendable at the dlscretion of Trustees in further3n¢e of the general objectives of the Charity and whlch have not been deslgnated for other purposes. Suth fund5 represent investments, loan5 and working capital balances. Restrlcted funds are funds sublectto speclflc restrlctlOll5 irnposed by the donors. These funds are not available for the Trustees to apply at thelr discretlon. The purpose and use of the restricted funds Is set out in the notes to the linanclal statements. Endowment funds are funds whlch the Trustees are legally required to invesr for a perlod of at least 25 years for the CharSty's purposes. Further detalls of the restricted and endowrnent funds are given in note 17. 13
The London Symphony Orchestra Endowment Trust Notes to the financial statements Year ended 31 March 2021 Acwuntlng polScles Icontinuedl el ExpeThdltu EKpendlture Is recognised on an a¢¢iua15 basls. fl Allocation of support and governance wsts General 5UPPOrt ¢05t5 relating to the operatlon of the charlty. whlch are mlnlmal, are borne by the London Symphony Orchestra and are not recognlsed In these finan¢lal statements. Governance ¢c5t5 comprlsè all costs Involvlng the public accountabillty of the Charity and its cornpllance with regulation and good practi. These costs Include costs related to statutory audit and legal fees. Governance cost5 are related to charitable activitles and have therefore been included under thls heading. gl Tangible fimpd a55ets Tanglble fixed a5setg are stated at Cost and represent three hlgh quality strlnE Instruments. These Instruments have not been depreclated because the Trustees are of the opinion that the net resldual value is at least equal to the orlglnal cost. h) Investment5 Investments are stated at the market vèlue as indlcated by the Report of the Investment Managers to the Tru5tee5 as at the Balance ShÈet date. Any resulting unreallsed 8ain or loss is allocated to the fund to which it relates within the Statement of Financial Activities. 11 Flnancial Instrurnents and COD5$10nary loans Flnancl81 assets 8nd liDancial liabilities are recognlsed when the Group becomes i party to the contractual provision5 of the instrument. The charity On has fin8nclal assets and financSal liabilities of a kind that qualify as basic financlal in5twrnents. Basic linanclal Instruments are Initlally recogn15ed at transatticn value ènd 5ub5equenrly measured at thelr settlement value. Trade and other debtors aTe recognised at the sèttlernent amount due after any trade discount offered, Prepayments are valued at the amount prep3id nÈt of any dlscounts due. Cash at b4nk and cash In hand includes cash and short term highly Ilquld investment5 Wlth a short maturity of three rnonths or less from the date of acquisition Dr opening of the deposit or similar account. Credltors and provlsions are recognised whÈre the tharlty has a Present obllg8tion re5ultlng frorn a past event that wlll probabty result In the transfer of funds to a thlrd P8rty and the amount due to settle the obliEation can bÈ measured or estimated reliably. Creditors and provision5 are norrnalty recognised at thelr sÈttlernent amount after allowlne lor any discounts due. Conce5sionary loans made to members of the LSO to as$15t them In the purch3sÈ of instruments are init1311y recognised at the amount pald with the carrylng amount in subsequent periods adlusted to reflect Inrerest, repayments and any Impalrfflent. jl Taxation The London Symphony Orchestra Endowment Trust is a registered charlty and Is thus @xempt from tax on Income and galns falling wlthln Part ID of the Income Tax Act 2007 or s256 of the TaKatSon of Chargeable Gains Act 1992 to the extent that these are applied to its charitsble objects. No tax charges have arisen In the Trust. 14
The London Symphony Orchestra EndowmentTrust Notes to the financial ststements Yearended 31 March 2021 2 Crltlcal ac¢ountlngludgement5 and key sources of estlmatlon uncertainty In the appllcatlon of the charity'5 accDunting pollcles, whlch are described in Note I, the Trustee5 are requlred to make judgements. estim3tes and assumptions about the c3rrying amounts of asset5 and liabilitie5 that are not readily apparent from other sources. The estimates and assoclated assumptlOn5 art based on historical experlence and other factors that are considered to be relevant. Actual results m4y diffÈr from these estimates. The estimatss and underfying a5sumptlons are reviewed on an ongolng basis. Re$lOn$ to accounting e5titnatÈs are rÈ¢ognlsed In the perd in whlch the estimate is revised if the revlslon affects only that period, or In the period of the revi51on and future periods if the revlslon affects both current and future perlods. The Trustees do not conslder there are any ¢ritlcal judgements or sources of estimation uncertainty requiring disclo5u beyond the accounting pollcles listed above. 3 Comparatlve Statement DI Finonclal Adlvitles and Balanre Sheet Comparative Statement of Flnancial Activities NotE 2020 Unrestrlcted funds 2020 2020 Restricted Endowment funds fund5 2020 Total funds Income and endowments from: Donatlons and le6atles Charltable activities Investrnent Incorne 62,132 1,704 74,340 84,500 146.632 1,704 451.579 377,239 Total Income 138,176 461,739 599,915 Expenditure Expenditure on-. R3islnB funds CharltabSe activities 117,7781 148,3551 117.7591 I679,5) 156,4131 191.9501 1727,8551 Total expendlture 166,1331 1697,2591 156.4131 1819,8051 Net gains on inve5tTnents io 1327.8661 1346,9381 11,369,742) 12,044,546) Transfer5 between ftjnds Net movement In*unds 1255,8231 1582,4581 11,426,1551 12,264A351 Recon¢lllatlon of funds Total lunds brought forward 4,821,572 3,364,158 10,186,982 18,372,712 Total funds ¢arrled forward 4,565.749 2,781,700 8,760.827 16,108,276 15
The London Symphony Orchestra Endowment Trust Notes to the financial statements Year ended 31 March 2021 3 Comparative Staternent of Flnan¢ial Actlvltles and Balan Sheet lcontinuedl CDrnparatlve Balance Sheet 2020 Unrestrl¢ted funds 2020 2020 Restrlcted Endowment funds funds 2020 Total funds Note Flxed assets Tanglble a55ets Investments assets Loans li 545.000 3,096,248 232,714 545,000 14,991.274 232.714 12 13 3.134,199 8,760,827 Total fixed assets 3,873,962 3,134,199 8,760,827 15,768,988 Cvrrent assets Debtors.. 3mount5 falling due wlthln one Cash at bank 14 17,117 680,490 34.500 1386,9991 51,617 293,491 Total current assets 697,607 1352N991 345,108 Current Ilabilities Credltors.. amounts lalllng due wlthln 15 15.8201 15,8201 Net turrent assets 691,7B7 1352,4991 339,288 Total net assets 4,565,749 Z,781,700 8,760,B27 16,108,276 TDtal funds of the charlty Funds brought forwBrd 17 4.821,572 3.364.158 10.186.982 18,372,712 lshorrfallllexss of Income over expendlture foT 72.043 1235,5201 156,4131 1219,8901 Reallsed and unreali5ed Increase / Idecreasel in 1327,8661 1346,9381 11,369,742> 12,044,546) FLtnd5 carrled forward 4,565,749 2.781,700 8,760,827 16,108,276 16
The London Symphony Orchestra Endowment Trust Notes to the flnancial statements Period ended 31 March 2021 2021 2020 4 Income from donailons and le8acle5 Donations Legacles 1.842,576 159,761 89,408 57,224 rotal IrKome from donatlons and legacies 2,002,337 146,632 All Income from donatlons and legacle5 Ill the year re18tes to Unrestricted Fund5. The total value of donations recelved from Trustees durlng the year was £105,000 12020.. £nill. 2021 2020 S Income from charitable a¢tlvltles Loan Interest recelvable from player loans 1,704 Totsl l#tome from charitable artlvltles 1,704 All Incorne from charltable activities relates to unrestricted funds. 17
The London Symphony Orchestra Endowment Trust Notes to the financial ststements Period ended 31 March 2021 2021 2020 6 Investment Incorne Dlvldends and Interestfrom investtnents 309.794 451.579 Total Investment Income 309,794 451.579 2021 Z020 7 Expendtture on ralslngfunds Investment m3nagement costs 90,174 91,950 Total expÈndilure on ralsin8 lund5 90,174 91,950 2021 2020 8 Expendlture on charitable a¢tivitie5 Giants to L50 6roup Governance cost$ 652.646 6.155 722,CXX) 5.855 Total expendlture on charhable artivltles 658,801 727,855 2QZI 2020 9 Net incomellexpendlturel Is stated after £harglng'. Audltor5' remuneration- audlt feÈ5 5,1(M) 4,850 Th@ Trustees dld not receive any remuneration for their services to the Trust nor were they relrnbursed for any expenses in either year. 18
The London Symphony Orchestra Endowment Trust Notes to the financial statements Year ended 31 March 2021 Grantsto institutions 2021 2020 10 Analysls of Brant5 payable and related party transactlons Always Playlng Appèal Fund grant to LSO Ltd to provide stjpport during the pandemic General Fund grant to LSO Productions Ltd for L50 Dlscovery Lord Mayor's Appeal 2004 grant to LSO Production5 Ltd for LSO Olscoveryactivities Lord Mayor's Appeèl 2017 grant to LSO Production5 Ltd for LSO Dlscoveryacrivities Anglo-japanese Fund grant for the LSO'S work In Japan and 5cholar5hips Endowrnent Fund grant to LSO Ltd for Moving Music digital projects Endowrnent Fund grant to LSO Productlons Ltd for Movlng Musl¢ dlgltal projects Endowment Fund grant to Lwe Ltd for Movlng Muslc dIEal projects RestrScted Fund grantfor lunchtime concerts at LSO St Luke's 170,155 42,500 50,000 352,000 37,5CK) 75,OCKI 17,500 147,5 157.oc LOO.000 32,975 158.016 34.500 Total grants to L50 Group 652,646 722,000 As explained in the Trustees. report, London Symphony Orchestra Ltd Ireglstered charlty number 2323911 15 a connected charlty. Gr3nts made to the LSO and Its subsldlarles, LSO Productions Ltd and L50 Llve Ltd durfng the year are shown above. 11 Tan8lble fixed as58t5 Mu5iral Instrumenis Cost At l Aprll 2020 545,000 Al 31 March 2021 545,000 Net book value At 31 March 2021 545,000 At l Aprll 2020 545.OIM) 19
The London Symphony Orchestra Endowment Trust Notes to the financial statements Year ended 31 March 2021 20ZI 2020 12 Investment assets Investment portlollo Market value brought forward at l Aprll Addltions Olsposals 14,991,274 1,517,488 11,L72,6771 15,336,085 17.439.025 129,146 1892.0581 16.676,113 Increaselldecreasel In marketvalue 3.268.614 11,684.8391 Total Investment a55ets 18,604,699 14,991,274 An analysls of the marketvalue of investments at the year end Is provlded below.. 2021 2020 Cash Llquld Short Terrn Deposit5 Fixed incornelbonds UK equltles Overse8s equlties Hedge funds and prlvate equity funds Property funds 2.252.317 228,868 5,528,471 2.145,112 7,023,470 217,993 1.208,468 782,517 237,020 5.529,732 2.740,661 4,335,8LO 242,471 1,123,064 Total 18,604,699 14,9YI,274 There are no Indlvldual Investments In excess of IO% of the totsl portfollo. The value of the Investment portfollo at 30 September 2021 was £19.866,289. 20
The London Symphony Orchestra Endowment Trust Notes to the flnancial statements Year ended 31 March 2021 2021 2020 13 Loans Amounts owed by LSO players Due wlthln one year Llue after onÈ year 34,412 157,960 192,372 232,714 232,714 The L50 players to whom concessionary loans have been made are shareholders of London Symphony Orchestra Ltd. The amount5 owed by the LSO player5 are repayable ower varylng perlods usually not eXedIng 7 years. All loans be3r interest 8t a variable rate eouating to the nk of England base rate for that perlod. However, during the Covld-19 pandemic these terms have varled interest h8s been walved untll 31 March 2022. There were no loans ro players that had been commltted to but nottaken up a5 at the 31 March 2Q21. 2021 2020 14 Debtors.. amountslalling due within one year Accrued Income Other debtors 122,308 262,444 51,617 384.752 51.617 2021 2020 IS Credltors.. amountsfalllng due wlthln one year Other credltors Accruals 67.273 6.120 5,820 73,393 5,820 21
The London Symphony Orchestra Endowment Trust Notes to the financial statements Period ended 31 March 2021 alance l Apr51 2020 Balance ai March 2021 16 Statement of funds Galns and losses Income ExpendltLtre Unrestricted funds.. General Fund AIw3y5 Playing Appeal 4,565,749 46,485 2,002.337 123,5861 1170,1551 598,977 5,187,625 1,832,182 Total unTe5tTirted funds 4.565,749 2,048.822 1193.7411 598.977 7,019.807 Restrlcted funds.. Lord Mayor's Appèal 2004 Lord Mayor's Appeal 2017 Anglo-japanese Fund Moving Muslc Income Fund Centre for Muslc Fund LSO St Luke's Lunchtirne Concert Fund 1,834,574 459,434 335,111 68,081 S0,(KiO 34,500 31,285 9.729 2,944 219,351 1168,4921 1103,6211 135,1531 1158,0161 388,419 123,501 29,370 2.085,786 489.042 332,273 129,416 50,CQO 134.5001 Total restrl¢ted fvnds 2,781.700 263,309 1499,7821 541,290 3,086,517 Endowments funds.. Mowng Music Capital Fund 8,760.827 155,4521 I,8,727 10,614,102 Total endowment funds 8,760,827 155.4521 1,908,727 10,614,102 Total fund$ 16,108,276 2,312,131 1748,9751 3,048,994 20,720,426 Deta115 Uf the Restricted and Endowment funds are set out below. Lord Muyor'sAppeul 2004 From November 2003 to NDvÈmber 2004 the endowment Trust wa5 the Major beneflclary of the Lord Mayor'5 Appeal. A wide varlety of und-ralslng events were held Includlng gala concerts. The funds raSsed from these events have been t side In a ie5tricted fund lorthe benefit of LSO Oiscovery. Lord Muyor'sAppeal 3017 From November 2016 to November 2017 the Endowment Trvst was selectÈd by the then Lord Mayor to be a major beneficiary of the Lord Mayor's Appe31. A wide variety of fund-raising events were held and the funds raised have been set aside In a re5trirted fund lorthe benefit of LSO Discovery. Anglo-joponese Fund ThÈ purpose of this fund 15 to build Anglo-Japane5e cultural relations by supporting the LSO'S work In Japan and to prowde scholarshlps to Japanese muslc students to asslstthem In studying at the Guildhall School of MusSc and Drama. Mowng Muslc Fund The fund was establlshed In 2012 to receive funds from the fundralslng campalgn of the same name. The mpaIgn ended n July 2015, and a total of £8,783,563 was raised overall. All funds have been invested In an endowrnent fund for a peri(xJ of at least 25 years. On completlon of the campalgn the ac¢umulated net Income of £144,199 was transferred to a separate restricted fund, and all subsequent investment income 15 a150 being treated In the same way. This reflects the fact that the income can be snt. whereas the base InvestmÈnts form an Èndowment and cannot be expÈnded. The Èxistlng investment policy is undeT review by Trustees to address this sltuation. The Incom@ from the Investment portfolio will be used to fund audio visual Fecordin85 of key contrrt performances by the LSO and the distribution ol these worldwide, includinq to vouno oeoole and nèw audientes. 22
The London Symphony Orchestra Endowment Trust Notes to the financlal statements Period ended 31 March 2021 16 statement of funds l¢ontlnuedl CentreforMusl¢Fund The Centre for Music Fund reprÈsents a donation toward5 the Centre for Muslc project whlch was a lolnr Sftitiative between the 0, B8rblcan Centro and Gulldhall School of Music & Drama IGSMDI. As that project Is now not pr¢gresslftg, It has been agreed wlth the donor thatthe funds wlll be applled toward a lolnt piojecÈ between the LSO and GSMD In the futu. LSOSt Luke's Lunchtime Contertfund Thls fund consists of 3 legary to 5UPPOrt lunchtime concerts at LSO St Luke's. Comparative movements In funds for the prloryÈarare shown in Note 17 to these accounts. 17 Comparative statement of funds Balance l Aprll 2019 Balance 31 March Galns and losses Income Expenditure 2020 Unrestricted funds.. General Fund 4,821.572 138,176 166,1331 1327,8661 4,565,749 Total unrestricted funds 4,821,S72 138,176 166,1331 1327,8661 4,565,749 Restrlcted fund5'. Lord Mayor's Appeal 2004 Lord Mayor's Appeal 2017 Anglo-japanese Fund Moving Music Income Fund Centre lor Muslc Fund LSO St Luke's Lunchtime Con 2,098,710 880,729 384.719 49,229 14,954 4.975 308,081 50,QIJO 34,500 161.8841 1355,6261 139,7491 1240,0001 1251,4811 180.6231 114,8341 1,834,574 459,434 335.111 68.081 50,000 34,500 Totsl restrl¢ted funds 3,364,158 46L739 1697,2591 1346.9381 2.781,700 Endowments funds.. Moving Music Capltal Fund 10,186.982 156,4131 11,369,742) 8.760.827 Total endowment funds 10,186,982 156,4131 11,369,742) 8,760,827 Total funds 18,372,712 599,915 1819.8051 12,044,546] 16,108,276 23