Charity Registration No. 233700 The London Symphony Orchestra Endowment Trust Report and Financial Statements 31 March 2023
The London Symphony Orchestra Endowment Trust Report and financial statements 2022-23 Contents Page Officers and professional advisers Trustees, report Statement of trustees, responsibilities Independent auditorfs report Statement of Financial Activities io Balance Sheet li Statement of Cash Flows 12 Notes to the financial statements 13
The London Symphony Orchestra Endowment Trust Report and financial statements 2022-23 Officers and professional advisers Trustees Charles Clark Hon Sir Rocco Forte Lady Aliai Forte Richard Hardie James Lennox Mackenzie OBE Dame Kathryn McDowell Lady Wendy Parmley Sarah Quinn Harriet Rayfield Daniel Ross John Shakeshaft (Chairman) lappointed 25 April 20231 (resigned 25 April 20231 Secretary Rikesh Shah Registered Office Barbican Centre Silk Street London EC2Y 8DS Investment managers Saunderson House l Long Lane London ECIA 9HF Sarasin & Partners Juxon House 100 St Paul's Churchyard London EC2M 2AN Bankers Lloyds Bank plc 34 Moorgate London EC2R 6PL Sollcltors Veale Wa5brough Vizards LLP Orchard Court Orchard Lane Bristol BSI 5WS Auditor HaysmacintY LLP 10 Queen Street Place London EC4R IAG
The London Symphony Orchestra Endowment Trust Trustees, report 2022-23 Introduction The Trustees present their annual report and the audited financial statements for the year ended 31 March 2023. Strurture. governance and management Constitution The London Symphony Orchestra Endowment Trust l-the Tru5t"I was originally established by a deed of settlement dated 12 September 1963 which has subsequently been amended by a tNst deed dated 22 October 1991, 8 Deed of Variation dated 5 July 2006 and a Deed of Amendment dated l October 2010. Trustees Gnd orgonist7tion 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 constitute a majority of the Trustees. Subject to these limits, new Trustees are recruited 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 is provided to Trustees as necessary. Names of the Trustees who seNed during the year and in office at the date of this report are listed on page one. The Trustees meet twice a year and, in addition, an Investment Committee meet5 during the year with the investment managers to review the performance of the investment portfolio and to discuss the investment approach. Connected chorNty The LSO Icharity Number 2323911 is a connected charity of the Trust by virtue of the fact that the two charltles have shared objectives and administration. However, the Trust is fully independent of the LSO and has it5 own Board of Trustees. The LSO'S subsidiary companies, LSO Productions Ltd and LSO Llve Ltd are considered to be related parties to the Trust. Objectives ond octivities The general purpose of the Trust 15 to support the objects of the LSO, narnely to promote, maintain and advance education, partictjlarly musical education and to encourage and advance the arts including music, drama, mime, dancing and singing. The Trust's main activity is to build long-term funds which will generate tUrnS that can be used to make grants which support the LSO as thi5 15 considered essential to being able to Secure the LSO'5 fvture. The Unrestricted General Fund is the main endowment fund which has been established for this purpose. In addition, the Trust has received funds raised from ihe Lord Mayorfs Appeals in 2004, 2010 and in 2017, as well as from a number of generous donors towards the Always Playing Appeal. established to SUPPOrt the LSO during and in the aftermath of the Covid-19 pandemic. In 2012, the Trust raised income of almost £6m and this in turn released funding from the Arts Council England's Catalyst Endowment Scheme of a further £2.9m. The funds from this campaign. which is known a5 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 London Symphony Orchestra Endowment Trust Trustees, report 2022-23 The Trust also occasionally receives donations and legacies which are intended to be used for very specific purposes over a limited timeframe. These funds are accounted for separately in order to ensure that the wishes of the donor or legator are honoured. The Trustees, principal focus is to manage the various funds in the most appropriate way given the relevant purposes and timescales, and to make grants to the LSO Group based on the needs of the LSO. The largest funds are all largely invested in order to maximise returns over the medium- and long-term. The Trust also makes loans to LSO members to assist them in purchasing musical instruments, and has acquired a small number of instruments which are loaned to the LSO for use by members of the Orchestra. The Trust does not use the services of volunteers and the minimal operational tasks of the Trust are undertaken by LSO Staff. Public benefit The Trust provides benefit to the public indirectly by providing funding to the LSO and thereby 5UPPOrting world class orchestra and its concert programme, as well as its wider activities including LSO Discovery's education and Community programme, and international dissemination of performance5 through LSO Live. The LSO'S core activities encourage the education of, and participation in, music by the public at large. This is achieved through public concerts which have accessible ticket prices land some of which are free of charge), some of which are broadcast on the radio, television and the internet and through audio recording5 which are widely available at low cost. The Trustees confirm that they have referred to the Charity Commission's guidance on public benefrt and thev believe that the support provided to the LSO provides benefit to a wide section of the public. Achievements and performance Investment portfolio The Trust invests its assets with a view to both capital appreciation and the generation of income to 5UPPOrt its charttable activities. There are no restrictions on the Trust's power to invest. Saunderson House managed the Trust's investments until July 2022 at which point they were transferred to S3r35in & Partners following a review and tender process. The investment strdtegy 15 set by the Trustees in discussion with the investment manager and this strategy is reviewed regularly. Within the overall strategy, the investment manager takes the decisions on selection, retention and realisation of investments. The value of the investment portfolio fell slightly to £19,259,988 reflecting purchases and sales made during the year (including through the transfer to new investment managers) and a net decrease in market value of £306,466. Investment performance reflected market conditions and portfolios are positioned to rneet agreed investment mandates. At 31 May 2023, the investment portfolio was valued at £19,163,158, reflecting falls in financial markets after the year end.
The London Symphony Orchestra Endowment Trust Trustees, report 2022-23 During the year. the Trustees agreed a change in the terms of the funding towards the Moving Music fund received from Arts Council England. The original restrirtion that only income generated from the whole Moving Music fund could be drawn down has been withdrawn and a formal variation to ihis effect was agreed between the Trustees and Arts Council England in March 2023. From April 2023, 8 total return approach will be applied to the Moving Music fund through which both income and capital gain5 can be drawn within parameters designed to protect the value of the fund over time. Fundraising The Always Playing Appeal, to support the LSO'S recovery from the Covid-19 pandemic and to support its musicians. was completed in Summer 2022 with the target set in the early stages of the pandemic being met. The Trustees wish to reiterate their gratitude to the lead donors to the Appeal, Alex and Elena Gerko, and to all those others who supported the Appeal. A number of large legacies were received or confirmed during the year and these formed the majority of philanthropic income. The Trust continued to promote legacy giving arnongst the LSO'S supporters and audiences which is an increasingly important source of income which allows the Trust to increase its ability to support the LSO over time. The Trust did not engage the use of third-party fundraisers. Gronts During the year, donations of £609.83612022- £187,5351 were made to the LSO GroLlP for a range of purpose5 in line with the purposes of various funds. The two largest grants related to support for LSO Discovery and for the Orchestra's tour to japan. Details of all grants made are set out in note 10. Loans to Ployers 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 year12022.. £110,973). At the year-end, 14 players had outstanding loans from the Trust; further detai15 are shown in Note 13 to the Financial Statements. Flnan¢lal revlew Total income received in the year was £1,098,45212022: £1,930,790), almost all of which related to donations, legacies, gift aid and income from investments. Expenditure of £637,573 12022.. £294,274) was in line with expectations and related primarily to grants and investment management fees. Net losse5 In the value of the investment portfolio were £735.521 12022- Gains of £117,1101 reflecting volatility in markets, particularly in the first quarter of 2023. Followine reinvestment of income and 5urplu5 cash, the value of the portfolio at the year-end was £19,259,98812022- £19,376,6681. The Trust's net assets fell from £22,474,052 to £22,199,410 at the year-end.
The London Symphony Orchestra Endowment Trust Trustees, report 2022-23 Reserves policy Of the Trust's total funds of £22.2m, a total of E14.4m comprise Endowment Funds or Restricted Funds which can only be used for specific purposes. Of the remaining Unrestritted Funds, £2.2m are held lor specific purposes leaving £5.6m in the unrestricted General Fund. Much of the General Fund comprises investments, which are held to Eenerate income, together with instruments for use by the LSO and loans to Members of the LSO. Further amounts at the year end related to legacies due but not yet received, and which are therefore not liquid funds. Excluding the investments, the other assets which are held for the long-term, and income accrued but not yet received, leaves a balance of £466,522 which the Trustees treat as free reserves. This amounts to slightly more than the target level for free reserves of 5% of the General Fund1£279,3311. This level of free reserves is considered sufficient given that the Trust has minimal administrative overheads and no on-going liabilities. In addition, the vast majority of investment5 held in the General Fund are liquid and available for drawdown at short notice if needed. The Trustees review leve15 of reserves on an annual basis. Risk review The major risks to which the Trust is exposed, as identrfied by the Trustees, have been reviewed and systems have been established to mitigate those risks. The primary risks relate to protecting the value of the Trust's investment portfolio and other assets. Trustees delegate management of this risk to professional investment managers with oversight by the Investment Committee consisting of five of the Trustees. Many factors affecting the achievement of the Trust's objectives relate to economic factors such as movement in share prices, interest rates, exchange rates and inflation and these are largely outside the Trust's control so can only be mitigated to a certain degree. However, the Trust has long-term time horizons and is largely able to absorb fluctuations In investment markets. Plans lor the fvture Work continues to secure donations for general purposes and specific projects. The Trust also continues to seek to increase the number of individuals who plan to donate a legacy to the Trust and the Trustees have been notified by a number of individua15 of pledged legacies of varying sizes. Careful oversight of the investment portfolio will continue in order to increase over time the value of grants made to support its charstable objectives. The policy of making grants to the LSO, LSO Productions Ltd and LSO Live Ltd is expected to continue along with loans to LSO members to assist with instrument purchases. Going ¢oncern At the year-end the Trust has significant net assets and minimal liabilities and operating costs. Grants are only awarded if Sufficient funds are available to fund the necessary payments. The Trustees have a reasonable expectation that the Trust has adequate resources to continue its activities for the *oreseealJle future and consider that there were no material uncertainties over the Trust's financial viability. Accordingly, the Trustees continue to adopt the going concern basis in preparing the financial statements. Fundraising approach The Trust subscribes to principles of fundraising 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 ihe standards of the Code of Fundraising Praciice. No complaints were received about the Trust's fundraising practices during the year.
The London Symphony Orchestra Endowment Trust Trustees, responsibilities statement The Trustees are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdorn Generally Accepted Accounting Practice), including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" The law applicable to charities in England and Wales requires the Trustees to ppare financial statement5 for each financial year which give a true and fair view of the stale of affairs of the Trust and of the incoming resources and application of resources of the Trust for that period. In preparing these financial 5tatewents, the trustee5 are required to.. select suitable accounting policies and then apply them consistentlv; obseNe the methods and principles in the Charities 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 basis unless it is inappropriate to presume that the Trust will continue in business. The Trustees are responsÉble for keeping proper accounting records that disclose with reasonable accurary at any time the financial posltion of the Trust and enable them to ensure that the financial Statements comply with the Charrties Act 2011, the Charity (Accounts and Reportsl Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irre@ularities. The Trustees are responsible for the maintenance and integrity of the Trust and financial information included on the Trust's website. Legislation in the united Kingdom governing the preparation and dissemination of financial statements may differ from legislation in otherjurisdictlons. Signed on behalf of the Tru5tee5 CLL QI Charles Clark Chairman 19 July 2023
Independent auditorfs 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 year ended 31 March 2023 which comprise statement of financial activities, 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charity's affairs as at 31 March 2023 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 Practice,. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereuftder. We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorf5 responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordante with these requirements. We believe that the audit evidence we have obtained is sufficient ènd appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the tTUStees' 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 cèst significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going toncern 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 Trustee5' Annual Report. Our opinion on the financial statements does 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 with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materyally inconsistent with the rinancial statements or our knowledge obtained in the audit 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 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 mi55tatement 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 respert of the following matters in relation to which the Charities IAccounts and Reports) Regulations 2008 require us to report to you if, in our opinion: adequate accounting records have not been kept by the charity,. or sufficient accounting records have not been kept,. or the charity financial statements are not in agreement with the accounting records and returns- or we have not received all the information and explanations we require for our audit. Responsibllities of Trustees for the financial statements As explained more fully in the trustees, responsibilities statement set out on page 6, the trustee5 are responsible for the preparation of the financial statements and for bein8 sat15fied that they give a true and fair view, and for Such internal control as the trustee5 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 charitV'5 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. Auditorfs responsibilities for the audit of the financial statements Our objective5 are to obtain reasonable assurance about whether the financial statements as a whole are free from material mi55tatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high leve5 of assurance, but is not a guarantee that an audit condutted in accordance with ISAS IUKI will alway5 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 decision5 of users taken on the basis of these financial statements. Irregularitie5, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our re5pon5ibilities, outlined above, to detert material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of deterting irregularities, including fraud is detailed below.. Based on our understanding of the charity and the environment in which it operates, we identrfied that the principal risks of non-compliance with laws and regulations related to the charities act, and we considered the extent to which non-compliance might have a material effect on the f inancial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 20113nd consider other factors such as income tax, payroll tax and sales tax.
Independent auditorfs report to the Trustees of The London Symphony Orchestra Endowment Trust We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controlsl. Audit procedures performed by the engagement team included.. Inspecting correspondence with regulators,- Di5CUS5ions with management including consideration of known or suspected instances of non- compliance with laws and regulation and fraud.. Reviewing the controls and procedures of the charity relevant to the preparation of the financial 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, posting5 by unusual users or with unusual descriptions, and Reviewing minutes of trustee meetings. Because of the inherent limitatlons of an audit, there is a risk that we will not detert all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removeij from the events and transactions reflected in the financial statements, a5 we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilitie5 for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.or .uk audilorsre5 onsibilities. This description fomis 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 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 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's trustees as a body for our audit work. for this report, or for the opinions we have formed. Hay5macintyre LLP Statutory Auditors 10 Queen Street Place London EC4R IAG Date: 19th July 2023 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 Activities Period ended 31 March 2023 Note 2023 2023 2023 Restrlcted Endowment funds ftsnds 2023 Total fvnds 1022 Total fvnds UnreMrlrted funds Income and endowments from- Donations and legacies 649,018 1,281 96,777 649,018 1,281 448,153 1,624,797 Inve5trnent income 351,376 305,993 Total income 747.076 351.376 I.IN8A52 1.930.790 Expendilure Expenditure on.. Raising funds Charitable activitie5 15,3691 1106,5921 13,5531 1511,8061 110,2531 119,1751 1618,3981 198,9011 1195,3731 Total expenditure 1111,9611 1515,3591 110,2531 1637,5731 1294,2741 Net gains/llossesl on investments 1165,1681 189,2411 1481,1121 1735,5211 117,110 Net lexpendlturell Income 469,947 1253,2241 1491.3651 1274.6421 1,753,626 Transfers between fund5 133,404 1133,4041 Net movement in funds 469,947 1119,8ZOI 1624,7691 IZ74,6421 1,753,626 Reconclliatlon of funds rotsl funds broughtforward 7,324,731 4,248.580 10.900,741 22,474,052 20,720,426 Total funds carried forward 7,794,678 4,128,760 10.275.972 22,J99NIO 22.474,052 There were no other recognised gain5 or losse5 Other than as shown above. All income and expenditure derlve from contlnuing See Note 3 for comparative Staternent of Financial Activities analysed byfunds io
The london Symphony Orchestra Endowment Trust Balance Sheet As at 31 March 2023 2023 2023 2023 2023 Total 2022 Unrestrirted furtd$ Restricted fund5 Endowment Total funds funds funds Note Fixed a55ets Tangible a55ets Investrnent a55et5 li 545,000 5,917,859 72,740 545,000 19,259,988 72,740 545,000 19,376,668 160,614 12 3,066,157 10,275,972 Loans 13 Total Ilxed assets 6,535,599 3,066,157 10,275,972 19.877,728 20.082.282 rrent assets Oebtors.. amounts falling due within one year Loans Cash at bank 14 595,969 32,073 647.364 595,969 32.073 1,709.967 46,023 56,953 2,296,594 13 1.062.603 Totsl current a55ets 1.275.406 1.062,603 2.338,009 2,399,570 Current Ilabllhles Creditors.. amounts lalling due wthin one year 15 116,3271 116.3271 17,8CK)I Net current a$set5 1,259,079 I62.603 2,321.682 2,391.770 Total net assets 7,794,678 4,128,760 10,275,972 22,199rt10 22,474,052 Total funds of the charlty Funds broughtforward 16 7,324,731 4,248,580 10,900,741 22,474,052 20,720.426 Excessllshortfalll of incorne over expenditure tor the year 635,115 1163,9831 110,2531 460.879 1,636,516 Reallsed and unrealised increase / Idecreasel in the value of investment assets 1165,1681 189,2411 133,404 1481.1121 1133,4041 1735,5211 117,110 Transfers between funds Funds carried forward 7,794,678 4,128,760 10,275.972 22,199NIO 22N74,052 The notes on page$ 13 to 24 form part of these accounts. Approved bythe trustees on 19 July 2023. Signed on behalf of the Board of Tru5tee5 Charles Clark Chairman li
The London Symphony Orchestra Endowment Trust Statement of Cash Flows Year ended 31 March 2023 2023 2022 Notes Cash used in operating artivitie5 1844.9941 1,371,374 Cash flows from inve5tin% artivities Interest from inve5tmeDts sh proceed5 from the sale of Investments Purch35e of iDve5tments Purchase of fixed assets Increaselldecreasel In cash and ¢ash equivalents In the year 448,153 18,728,949 118,918,735) 305,993 253,856 1701.6251 1586,6271 1,229,598 Cash and cash equivalents atthe beginning of the year 2,296.594 1.066.996 Total ¢ash and cash equlvalents at the end of the year 1,709.967 2.296.594 Rewnciliation of met movement In fund5 to net cash flow from operating attivltles 2023 2022 Net moveinent in funds Unreali*d Igainslllosses on investments DNidend and Interest incorne frorp investments Decreasellincrea5el in loans Ilncreasel in debtors Increase in creditors 1274,6421 306,466 1448,1531 IL2,754 1549,9461 8.527 1,753,626 1324,2001 1305,9931 125,1951 338,729 165,5931 cash used In operatinB attlties 1844.9941 1,371,374 Analysi5 of [t funds 2023 2022 Cash at bank and in hand 1,709,967 2,296,594 12
The London Symphony Orchestra Endowment Trust Notes to the financial statements Year ended 31 March 2023 l Accountlng policies al Basls of preparatlon The financial statements have been prepared in accordance with the Financial Reporting St8fjdard applicable in the UK and Republlc of Ireland IFRS1021, the Statement of Recommended Prartlce applicable to charitie5 preparing their accounts in accordènce with the Flnancial Reporting Standard applicable in the UK 8nd Republic of Ireland IFRS 1021- effective l January 2015. The financial statements have been prepared to give a 'true and fairf view and ha¥e depBrted from the Charities (Accounts and Reportsl Regulations 2008 only to the extent required to provide a 'true and fair view. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 issued on 16 July 2014 rèther than the Accounting Reporting by Charities.. Statement of Recommended Practice effective from l April 2005 whlch has slnce been withdrawn. The financial ststements are drawn up under the historical cost converltion except that investments are rrIed at fairvalue. The Trust ffleets the definition of a Public Benefit Entlty unéer FRS 102. bl Preparation of accourlts on a going concem basls The fin8ncial statements have been prered on the basis that the Trust is and will remain a going concern for the foreseeable future. At the yearend the Trust ha5 Significant net assets and minimal li8bilities and operating costs. Grant5 are only awarded if sufficient funds are available to fund the neTr553ry p3yrnents. Despite the on-going impatts of the pandemic, ènd having reviewed expected future c3shflows, the Trustees have a reasonable expectation that the Trust has adequate resources to continue its activities for the foreseeable future and consider that there were no rnaterial uncertainties over the Trust's financial viability- cl Income Incorne 15 recognised when the charity has entitlement to the funds, any performance condition5 attsched to the item of income have been met, it is probable that the income will be received and the amount can be measured Donations, are recoEnised when the Trust has been notified in writing of both the 8mount and settlement date. In the event that a donation 15 subject to condition5 that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly wi(hln the control of the chaiity and it 15 probable that those condf(ions will be fuffilled in the reporting period. Leg3ty gifts ère recognised on a case by case basls followlng the grantlng of probate when the administrator/executor lor the estate has comrnunited in writing both the amount and settlement date. In rhe event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subjett to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the a55et having been tr3nsferred to the charity. Investment income and interest receivable 8re recognised on an accruals basis. dl Fltnds The General Fund is a general unrestricted fund and represent5 funds which are expendable 8t the discrÈtion of Trustees in furtherance of the general objective5 of the Ch3rity and which have not been designated for other purposes. Such funds represent Investments, loans and working c3Pit31 balances. Restricted funds are funds subject to speclflc restrittions imposed by the donors. These funds are not available for the Trustees to apply at their discretion. The purpose and use of the restricted fvnd5 is set out in the note5 to the financial 5tateTnentS. Endowment funds are funds which the Trustees are legally reoulred to invest for a period of at least 25 years lor the Charity's purposes. Further details of all funds are glven in note 16. 13
The London Symphony Orchestra Endowment Trust Notes to the financial statements Year ended 31 March 2023 Auounting policles Icontlnuedl ¢1 Expeftditu Expenditure 15 recognised on an accruals basls. Allocatlon of support and govema#ce cos General support costs relatingto the operation of the charity, which are minirnal, Bre borne by the London Symphony Orchestra and are not recognised in these fin8ncial statements. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good prartlce, Includlng statutory audit fee5 and leg31 fee5. Go¥ernance costs are related to charitsble activfcie5 and have therefore been included under this heading. 81 Tangible fixed asset5 Tangible fixed 3sset5 are ststed at cost and represent three high qu311ty string instruments. These instruments hove ot been depreciated because the Trustees are of the Opinio that the net residu31 value is at le35t equal to the hl Investments Investments are ststed at the m8rket value as Indicated by the Report of the Investment Managers tothe Trustees a5 at the Balance Sheet date. Any resulting unreali5ed gain or1055 is allocated to the fund to which it relates within the Statement of Financial Activities. 11 Flnan¢ial instruments and concessionary loans Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument. The charity only has financial assets and financial liabilitie5 of a kind that qualify a5 basic financial instruments. Basic financi31 instnjments arÈ initially recognised at tr8nsattion v81ue 8nd 5ub5equently measured at their settlement value. Trade and other debtors are recognised at the settlement atnount due after any trade di5COUnt offered. PrepayFnent5 are valued at the amount prepaid net of any discounts due. Qsh at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less frorn the date of acquisfcion or opening of the deposlt or sirnilar account. Creditors and provisions are re¢o8ni5ed where the ¢h8rity has 3 present obligation re5ultinE from a past event that will probèbly result in the transfer of funds to a third party and the èmount due to settle the oblig8tion can be measured or estim4ted reliably. Creditors and provislons are normally recognised at their 5ettlernent amount after allowing for any discounts due. Concessionary loans rnade to members of the LSO to assist them In the purchase of instruments are initially recognised at the amount paid wfth the carrying amount In subsequent periods adjusted to reflect interest, repayment5 and any Impairment. jl Taxatits The London Symphony Orchestra EndowmentTrust 15 a registered charity and 15 thus exemptfrom tax on income and gains fallinE Wlthln Part ID of the ltscome Tax Act 2007 or $256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable obJect5. No tax charges have arisen in the Trust. 14
The London Symphony Orchestra Endowment Trust Notes to the financial statements Year ended 31 March 2023 2 tiitical accounting judgements and key sour¢es of tlInatIOn uncertainty In the applicètion of the charity's accountinE policies, which are described in Note l. the Trustees are required to rnake jud8ement5, estirnates and assumptions about the carrying arnount5 of a55et5 and liabilities that are not readily apparent frorn other sources. The estimates and associated assufflptiQn5 are based on hi5toric31 experience and other fattor5 that are considered to be relevant. Attual results may differ from these estimates. The estimate5 and underlying assumptlDns are reviewed on an ongoing ba515. Revisions to accounting estimates are cOgnISed in the period in which the estimate is revised if the revlsion affects only that period, or in the period of the revision and future period5 rf the revision affects both current and future periods. The Trustees do not consider thÈre are any critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listÈd 3bovÈ. 3 Comparative Statement of Financial Artlvitles and Balance Sheet Comparatlve Statement of Financial Artivities Note 2022 2022 Restricted Endowment fvnds funds 2022 2022 Unrestricted funds Total funds Income and endowments from: DonatlOn5 and legacies Charitable artivitie5 Investment income 703.267 921,530 1,624,797 46,116 259,877 305,993 Total Income 749,383 1.181,407 1,930,790 Expendlture Expendlture on.. Raising funds Charitable activi£ies 123,3631 1207,8381 115,7321 12,465 159,8061 198,9011 1195,3731 Total expenditure 1231.2011 13.2671 159,8061 1294,274 Net gains on investments 1213,2581 116,0771 346,445 117,110 Transfers between funds Net movement In funds 304,924 1.162.063 286.639 1.753.626 Reconciliation of fund5 Total fund5 brought forward 7,019,807 3,086.517 10,614,102 20,720,426 Total funds ¢arrled forward 7,324,731 4,248,580 10,900,741 22,474.052 15
The London Symphony Orchestra Endowment Trust Note5 to the financial statements Yearended 31 March 2023 3 Comparative Statement of Financial Artivities and Balan¢e Sheet l¢ontlnuedl Comparatlve Balance Sheet 2022 2022 2022 2022 Total funds Unrestricted fund5 Restrirted Endowrnent funds funds Note Fixed assets Tangible assets Investments a55et5 li 12 545,000 5.491,542 160,614 545,0 19,376,668 160,614 2,984,385 10.900,741 Loans 13 Totsl fiKed assets 6.197,156 2.W385 10,900,741 20,082,282 Current assets Debtors.. atnounts falling due withln one Loans C8sh at bank 14 46,023 56,953 1,032,399 46.023 56,953 2,296,594 13 1,264,195 Total ¢vrrent as$ets 1,135.375 1,264,195 2,399.570 Credltors.. amount5 falling due within 15 17,8001 17,8001 Net current assets 1.127,575 1,264,195 2.391.770 Tolal net assets 7.324.731 4,248.580 10,900,741 22A74,052 Total funds of the chaylty Funds brought forward 17 7,019.807 3,086,517 10.614,102 20.720.426 IShortf3llllexcess of income over expenditure for 518.182 1,178,140 159,8061 1,636,516 Reali5ed and unreallsed Increase I Idecreasel in 1213,2581 116,0771 346,445 117,110 Fund$ Carried forward 7.324.731 4,248,S80 10.900.741 22,474,052 16
The London Symphony Orchestra Endowment Trust Notes to the financial statements Period ended 31 March 2023 2023 2022 4 Incomefrom donations and legacles Donatlons 50,046 598,972 1,353,941 270,856 Legacies Total income from donatlons and Fegacles 649,018 1.624,797 All income from donations and legacies in the year relates to Unrestrirted Fund5. The total v31ue of donation5 received frorn Trustees during the year was £nil 12022.. £12.5001. 2023 2022 5 Income from ¢horilable artivitie5 Loan interest re[Vable from playei loan5 1.281 Total inwme frorn charitable artivities 1,281 All income from charltable attivltles relates to unrestricted fund5. 17
The London Symphony Orchestra Endowment Trust Notes to the financial statements Period ended 31 March 2023 2023 2022 6 Investment Income Dividends and interest frorn iTrvestrnents 448.153 305.993 Total investment income 448,153 305,993 2023 2022 7 Expendlture on ralslng fvnds Investment management costs 19,175 98,901 Total expenditure on raising funds 19,175 98,901 2023 2022 8 ExNdhure on charhable attivities Grznts tothe LSO Group15ee Note 101 Governance c05tS 609,836 8,562 187.535 7,838 Total expendlture on charltable actlvltles 618,398 195,373 2023 202Z 9 Net in¢omellexpeTrditurel is ststed after¢har8ing= Auditors, remuneration- audit fees 6,825 6.500 The Trustees dld not recelve any remuneration for their service5 to the Tiust nor were they reimbursed for anv eKpense5 in either year. 18
The London Symphony Orchestra Endowment Trust Notes to the financial statements Year ended 31 March 2023 Grants to InlttiOnS 2023 2022 10 Analysis of grants payable and related p2rtytransathion$ Unrestricted General Fund grant to LSO Ltd Unrestricted General Fund grant to LSO Productions Ltd for LSO Discovery Strategic Fund grant to LSO Ltd Strategic Fund gr3ntto LSO Productions Ltd for LSO Discovery Anglo-Japanese Fund grant foF the LSO'S work in japan Digit81 Fund grant to LSO Live Ltd for Moving Music digital projects LSO Discovery lone-tsffl Fund grant to LSO Productions Ltd for LSO Discovery Restricted Centie for Music Fund 8rant to LSO Ltd for concert at St Paul's Cathedral 28,030 30,000 200.000 40,000 140,275 12,500 124,9651 321,530 so,000 Total grant5 to the LSO Group 00936 187,535 As explained in the Trustees, report, London Symphony Orchestra Ltd (registered charity number 2323911 is 8 connected charity. Grants made to the LSO and 5 subsidlaries, LSO Productions Ltd and LSO Live Ltd during the vear are shown above. There were no other related party transactions in the year. 11 Tangible lixed assets Musl¢al Instruments Cost At l April 2022 545,000 At 31 March 2023 545,000 Net book value At 31 March 2023 545,000 At l Aprll 2022 545,000 19
The London Symphony Orchestra Endowment Trust Notes to the financial statements Year ended 31 March 2023 2023 1022 12 Ihvestment OSSÈts Investment portlolio M3rket value brought forward 3t l April AdditlOnS Disposals 19,376,668 18,918,735 118,728,949) 19,566,454 18.604,699 701,625 1253,8561 19,052,468 IDecreasel}increase in market Value 1306,4661 324,200 Total investment assets 19,259,988 19,376,668 An analysis of the Market value of investments at the year end is provided below.. 2023 2022 Cash Liquid Short Term Deposits Fixed incomelbond5 UK equitie5 Overseas equltles Hedge funds, private equity funds and other alternatives Property funds I,ILI,925 1,365,730 3,300,178 3,061,518 7,661,617 2.041,378 717,642 915,006 392,471 6,373,839 2,416,731 8,025.013 1,253,608 Total 19,259.988 19.376.668 There are no individu81 Investments in excess of io% ol the total wrtfolio. The value of the investment portfolio at 31 May 2023 was £19.163,158. 20
The London Symphony Orchestra Endowment Trust Notes to the financial statements Year ended 31 March 2023 2023 2022 13 Loans Amounts owed by LSO players Due within onÈ year Oue after one year 32,073 72,740 104,813 56,953 160,614 217,567 The LSO players to whom concesslon8ry loans have been tnade are shareholders of London Symphony Orchestr Ltd. The amounts owed by the LSO players ère repayable over varying periods usually not exceeding 7 years. All 103ns bear Interest at a v8riable rate linked to the Bank of England base rate. However, during the Covid-lg pandemic these terms were varied and interest was waived unt11 April 2022. There We no loans to players that had been corDmitted to but not taken up as at the 31 March 2023. 2023 2022 14 Debtors: amountsfalllng due wlthln one year Amounts due fTOrn LSO Group Companies Accrued income 2,133 43,890 595,969 595,969 43,890 Accrued income primarily relates to legacies to which the Trust is entitled, and grft aid payments not yet received. 2023 2022 15 Credltors.. amountsfalling due within one year Accruals 16,327 16,327 7,800 21
The London Symphony Orchestra Endowment Trust Notes to the financial statements Period ended 31 March 2023 Balance l Ap1 2022 Bèlan¢e 31 March 2023 16 5t8temeni oll¥nds G•lns and losses Income Expenditure Tvanslers Unrestrirted funds.. General Fund Strategic Fund Wallis Fund 5,094,883 2.122,223 107,625 698,715 52.225 13.8641 170,0641 1136,9221 141,8081 124,7271 1891 13.5191 5,586,612 2,107,913 l(K),193 Total unrestricted funds 7324.731 747.076 1111,9611 1165,1681 7,794,678 Restricted fund5'. LSO Discovery11ong-terrnl Fund LSO Discovery Ishort-tsrml Fund O Discovery lonp-om Fund 2,071.128 506,d57 321,530 382,055 6LNJ,WO 317,410 50,(Kh) 39,812 4,986 11,8231 11,2601 1321,5301 189,7581 2,865 2,019,359 513,048 305,700 133,404 821,159 600,(K)D 175,194 O St Luke's Fund J3pane5e Student Scholarship Fund Centre for Music Fund 878 1140,7461 (so,0} 12,3481 Total restricted lund5 4.248.580 351,376 1515,3591 189,2411 133W4 4.IZ8.760 Endowment funds.. 10,9CN),741 110,2531 1481,1121 1123.4041 10,275,972 Totsl endowment fund5 10,91¥J,741 110,Z531 1481.1121 1133.4041 10.275.972 Totsl Ivnd5 22,474,052 1,098,452 1637,5731 1735,5ZII 22,199.410 Detai15 of thevarious funds are set out below.. Generol Fund Thi5 15 the Trust's primary unresrrlcted fund in whlch all funds, except those with spÈcific restrfrtions, are held. Part of the fund omprises instrumÈnts which ère loaned to the LSO for use by its player5, and the tnajDrity of funds are Invested with the inve5tfflent return used to makÈ grants to the LSO. srrotegic Fynd- previously known 05 thEAIwuys PlayingAppeol Fund This fund was created to receive income durin8 the Covid-19 pandemic as pèrt of the Alway5 Playing Appeal. This is an unrestricted fund. with the maill purp95e being to provide strategic support to support the L50 during and after the paTrdemic, in pèrtSculèr to supporr ifs mu5ici3n5 3nd 4551st in the transition to a new business model over cornin8 years. WGIIi5 Fund This is an unrestricted fund wfvich 1$ accounted for separately In lir* wlfh the requirements of a legary that was received i 2021. 1ncome and capiral grgwrh from the fund5 invested wlll be used to support LSO Discovery's work. ThÈ fund will be transferred to the General Fund after ten year5, in March 2032. 22
The London Symphony Orchestra Endowment Trust Notes to the financSal statements Period ended 31 March 2023 16 Siatemeni of lunds lcorttinuedl LSO Di5covery(lon9-terml Fund-previously krttrwll 05 the Lord MayorsAppeo12004 Fund This fund 15 held for the lon8-tertn with funds invested and the investment return used to make grants to supportthe workof LSO Discovery land related education and totnrnunity projects). LSD DiscGvery1short-term) Fund- previotssly known LT5 theLord Muyor'5 Appea12017Fund This fund is to be Used to support the woik of LSO Discovery lond related education and community projects) over a defined titne frame, typically le55 than 10 years. LSO 9COvery lone-offl Fund-previou51y known as the LSO Dlscovery Fund This fund hès been established following 8 donation which was to be used to 5UPPOrt Di5covery'5 work. DioittslFund tsndDigitol (incomel Fund- previously known tss the Movin9 Music Fund These two funds are used to fund audio visual recordings of concert performances by the LSO and the distribution of these worldwide, includin8 to young people and new audien$. The fund5 are invested for the long-term with investment returns ?vai18ble to be drawn down. Until March 2023, only income generated could be drawn down- thi5 income 15 held 5eparatelv in the Digital lincomel Fund. From April 2023, a total return approach will be applied to the MovinÈ Music fund through which both incotne and capital gains can be drawn withln p8rameters dèsigned to protectthe value of the fund overtime. $0St Luke's Fund This fund has been established to receive fund5to be used to support capital projetts and other activity at L50 St Luke'5. JupGneseStudentScholorship Fund- previously known tss theAnolTrJuponese Fun This fund wa5 e5tabli5hed to build Anglo-japanese cultural relations by supporbng thè LSO'S work in Japan and to provide scholarshlps to Japanese tllU51C students to assist thern in 5tudyinE at the Guildhall School of Musit & Drama. The remaining funds held can only be used for scholarships. Centreformusic Fund The Centre for Music Fund represents a donation towards the Centre for Music projert. As that project 15 now not progre55in& it was agreed with the donorthatthe fund5 should be applied towards a joint project betsveen the LSO and the Guildkll School of Music & Dram3 in June 2022. Comparative movements in fund5 forthe prioryeor are shown In Note 17 to these accounts. 23
The London Symphony Orchestra Endowment Trust Notes to the financial statements Period ended 31 March 2023 Balance l April Zozi Balance 31 Marth 2022 17 Comparative 5tatevnent of funds Galns and losses Income Expenditure Transfer5 Unre5trirted funds.. General Fund Strategic Fund Wallls Fund 5,187,625 1,832,182 167,167 582,216 129,8761 1122,4081 1107,6251 1201,3251 190,8501 5,094,883 2,122,223 107,625 107,625 Total unremrlcted lunds 7,019.807 749,383 1231.2011 1213.2581 7,324,731 Restritted funds.. LSO Discovery Ilong-terml Fund LSO DSscovery Ishort-terml Fund LSO Distovery lone-offl Fund DiEitIl lincotnel Fund LSO St Luke'5 Fund Jap3nese Student Stholèrship Fund Centre for Music Fund 2,085,786 489.042 24,726 5,842 321,530 227.674 600,000 1,635 111.6161 12.3121 127,7681 13,885 2,071,128 506,457 321,S30 382,055 600.000 317,410 50.000 129,416 24,965 332,273 SO,0 114,3041 12,1941 Total restrlcted funds 3.086,517 1,181,407 13.2671 116,0771 4,24880 Endowment funds.. Digital Fund 10,614,102 159.8061 346,445 10,900,741 Total endowmemtlunds 10,614,102 159,8061 346.445 10,91Y),741 Total funds 20.720.426 1,930,790 1294.2741 117,110 22.474.052 24