Charity Registration No. 233700 The London Symphony Orchestra Endowment Trust Report and Financial Statements 31 March 2024
The London Symphony Orchestra Endowment Trust Report and financial statements 2023-24 Contents Page Officers and professional advisers Trustees, report Statement of trustees, responsibilities Independent auditor's report Statement of Financial Actlvlties 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 2023-24 Officers and professional advisers Trustee5 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 R055 john Shakeshaft Ichairrnanl lappointed 25 April 20231 Iresigned 25 April 20231 Secretary Rikesh Shah Reglstered Office Barbican Centre Silk Street London EC2Y 8DS Investment managers Sarasin & Partners Juxon House 100 St Paul's Churchyard London EC2M 2AN Bankers Lloyds Bank plc 34 Moorgate London EC2R 6PL Solicitors Veale Wasbrough Vizards LLP Orchard Court Orchard Lane Bristol BSI 5WS Auditor Haysmacintyre LLP 10 Queen Street Place London EC4R IAG
The London Symphony Orchestra Endowment Trust Trustees, report 2023-24 Introductlon The Trustees present their annual report and the audited financial statements for the year ended 31 March 2024. Structurei govemance and management Constitution The London Symphony Orchestra Endowment Trust 1.the Trust") was originally established by a deed of settlement dated 12 September 1963 which has 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 ond organisotion The Trustees have the power to appoint further Trustees, subject to there being a minimum of 3 and a maximum of 10 Trvstees of whom not more than 4 may be directors of London Symphony Orchestra Ltd I'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 qualificatior15 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 Trustee5 as necessary. Names of the Trustees who served dLFring the year and in office at the date of thi5 report are listed on page one. The Trustees meet twice a year and, in addition, an Investment Committee meets during the year with the investment managers to review the performance of the investment portfolio and to discuss the investment approach. Connected charity The LSO Icharity Number 2323911 is a connected chartty of the Trust by virtue of the fact 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 5ub5idiary companies, LSO Productions Ltd and LSO Live Ltd are consldered to be related parties to the Trust. Objectives and octivities The general purpose of the Trust is to support the objects of the LSO, namely to promote, maintain and advance education, particularly musical education and to encourage and advance the arts including musSc, drama, mime, dancing and singing. The Trust's main actNity 15 to build long-term funds which will generate retum5 that can be used to make grants which support the LSO as this 15 considered essential to being able to secure the LSO'S future. The unrestricted General Fund is the main endowment fund which has been established for thi5 purpose. In addition, the Trust has received funds raised from the Lord Mayorfs Appeals in 2004, 2010 and in 2017. as well as from a number of generous donor5 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, known as Moving Music, are invested in the Digital Fund as a restricted long-term endowment with the income generated used to capture audio and audio-visual recordings of the LSO'S concert perfom)ances and to disseminate them to a wider audience.
The London Symphony Orchestra Endowment Trust Trustees, report 2023-24 The Trust also occasionally recetves donations and legacies which are intended to be used for very speciflc 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 focvs 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 sm811 number of instfuments which are loaned to the LSO for use by members of the Orchestra. 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 provides beneflt to the public indirectly by providing funding to the LSO and thereby supporting world Class orchestra and its concert programme, as well as it5 wider activities including LSO Discoverfs education and community programme, and international dissemination of performances 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 prices13nd some of which are free of chargel, some of which are broadcast on the radio, television and the internet and through audio recordings which are widely available at low cost. The Trustees confirm that they have referred to the Chartty 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. Achlevements and perfom)ance Investment portfolio The Trust Invest5 its assets with a view to both capttal appreciation and the generation of income to support its charitable activities. There are no rest¥ictions on the Trust'5 power to invest. The Investment Strategy is set by the Trustees in discussion with the investment manager and thi5 Strategy is reviewed regularly. Within the overall strategy, the investment manager takes the decisions on selectlon, retention and realisation of investments. The value of the investment portfolio increased to £21,726,201 reflecting purchase5 and sales made during the year and a net increase in market value of £2,019,030. Investment performance reflected market conditions and portfolios are positioned to meet agreed investment mandates. At 31 May 2024, the investment portfollo was valued at £24,157,671, reflecting changes in financial markets and additional sums invested after the year end.
The London Symphony Orchestra Endowment Trust Trustees, report 2023-24 From I, April 2024, a total return approach has been applied to the Digital Fund through which both income and capital gains can be drawn within pararneter5 designed to protect the value of the fund over time. The initial value of the fund is set as the amount held at the conclusion of the fundraising campaign that led to the creation of this fund. The unapplied total return at I, April 2024 was the difference between the value of the investment fund at that date and the initial value of the fund. Following advice frDrn the Trust's solicitors and investment managers (see page 11, the Trust's policy is to draw 3.5% of the 3-year average value of the investment fund subject to sufficient unapplied total return being available. No drawdown was made in the year as charitable artivity was funded from previously accumulated income, held separately in the Digital lincomel Fund. Fundmising Following the major appeal during the pandemic, active fundraising activity during the year was limited. Voluntary income reflected donations and legacies received and associated Gift Aid. The Trust continued to promote legacy giving amongst the LS0'5 SUPPOrters and 3udience5 which is an increasingly important source of income which allows the Trust to increase tts ablllty to 5UPPOrt the LSO ovey time. The Trust did not engage the use of third-party fundraisers. Gronts During the year, a grant of £300,00012023'. £609,836) from the Digital Fund was made to the LSO Group. Details of all grants made are set out in note 10. Loons to Players The Trust continued to offer loans to members of the LSO to assist them in the purtha5e of instruments. There were 2 new loans were made to players during the year 12023.. £nill. At the year-end, 11 players had outstanding loans from the Trust; further details are shown in Note 13 to the Financial Statements. Financial review Total income received in the year was £726,05012023- £1,098,452), almost all of which related to donatlons, legacies, gift aid and income from investments. Expenditure of £402,41712023- £637,573) was in line with expectations and related primarity to Brants and investment management fees. Net gains in the value of the investment portfolio were £1,521,277 reflecting strong performance of investment markets during the year. Following reinvestment of income and surplus cash, the value of the portfolio at the year-end was £21,726,20112023.. £19,259,988). The Trust's net assets Increased from £22.199,410 to £24,044,320 at the year-end.
The London Symphony Orchestra Endowment Trust Trustees, report 2023-24 Reserves pollcv Of the Trusys total funds of £24.Om, a total of £15.5m comprise Endowment Funds or Restricted Funds which can only be used for specific purposes. Of the remaining Unrestricted Funds, £2.3m are held for specific purposes leaving £6.2m in the unrestricted General Fund. Much of the General Fund comprises investments, which are held to generate income and capital gains, 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 also not liquid funds. Excluding the investments and the other assets which are not liquid, leaves a balance of £870,250 which the Trustees treat as free resees. This arnounts to more than the target level for free reseNes of 5% of the General Fund 1£310,0001 and the surplus is being transferred to the investment portfolio and deposit accounts. The 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 investments held in the General Fund are liquid and available for drawdown at short notice if needed. The Trustees review levels of reserves on an annual ba51S. Risk review The major risks to which the Trust is exposed, as identified 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 ha5 long-term time horizons and is largely able to absorb flurtuations in investment markets. Plans for the future Work continues to secure donations for general purposes and speciflc projects. The Trust also continues to seek to increase the nurnber of individuals who plan to donate a legacy to the Trust and the Trustees have been notified by a number of individuals 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 charitable 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 concem At the year-end the Trust had significant net assets and minimal liabilities and operating costs. Grants are onlv awarded if sufficient funds are available to fund the necessary payments. The Trustee5 have a reasonable expectation that the Trust has adequate resources to continue its activities for the foreseeable 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 fundralsing best practice by committing to high standards, and being clear. honest, open, respectful, fair and reasonable, and accountable and responsible. The Trust 15 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 Trustees are responsible for preparing the Trustee5' Annual Report and the financial Statements in accordance with applicable law and United Kingdom Accounting Standards Iunlted Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" The law applicable to charlties in England and Wales require5 the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust for that period. In preparing these financial statements, the trustees are reqUId to.. select Sultable accounting policies and then apply them conslstently. obsenje the methods and principles in the Charrties SORP- make judgrnents 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 unle55 It is inappropriate to presume that the Trust will continue in business. The Trustees are responsible for keepin8 proper accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also sponsIble for safeguarding the assets of the Trust and hence for taking reasonable steps for the preventSon and detection of fraud and other irregularities. The Trustee5 are responsible for the maintenance and integrity of the Trust and fin8ncial information included on the Trust's webslte. Legislation in the Untted Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Signed on behalf of the Trustees Charles Clark Chairman 8 July 2024
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 2024 which comprise statement of financial activitie5, 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 Generallv Accepted Accounting Practice). In our opinion, the financial statements- give a trve and fair view of the state of the charity'5 affairs a5 at 31 March 2024 and of the tharity's net movement in funds for the year then ended- have been properly prepared in accordance wwth United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charities Act 2011. 8asls for opinion We have been appointed as auditor under settion 144 of the Charities 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 Auditin8 IUKI (15 IUKII and applicable law. Our responslbilities under those standards are further described in the Auditols responsibilities for the audit of the financial statements sectlon of our report. We are independent of the chartty 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 accordance with these requirements. We believe that the audit eviden we have obtalned is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the g0Sng concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identkfied any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibillties of the trustees with respect to going conrn 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 Trustees, Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audft of the financial statements. our responsibllity Is to read the other information and, in doing $0, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or othenlSe appears to be materially
Independent auditorfs report to the Trustees of The London Symphony Orchestra Endowment Trust misstated. If we identlfy such materlal 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 rnisstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on whlch we are requlred to report by exceptlon We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you rf, In our opinion.. adequate accountlng records have not been kept by the charity; or SLsfficient accountin@ 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 explanation5 we require for our audit. Respon5ibilitie5 of Tru5tee5 for the financial statements As explained more fully in the trustees, responsibilities statement set out on page 6, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true ond fair view, ond for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material mi5Statement. whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charlttys ability to continue as a going concern, disclosin8, 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 Ilo so. Auditorfs responsibilities for the audit of the financial statements Our objective5 are to obtain reasonable assuran about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditols report that include5 our opinion. Reasonable assurance 15 a high level of a55urance, but is rlot a guarantee that an audit conducted in accordance with Is IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these firiancial statements. Irregularities, inclyding fraud, are instances of non-compliance with laws and regulations. We design procedure5 in line with our responsibilities, outlined above, to detect material mi55tatements 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 charity and the environment In which It operates, we Identified 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 financSal statements. We also considered those laws and regulation5 that have a direct impact on the preparation of the financial statements such as the Charities Art 2011 and consider other factors such as relevant taxation.
Independent auditorfs report to the Trustees of The London Symphony Orchestra Endowment Trust We evaluated management'5 incentives and opportunlties for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team included.. Insperting correspondence with regulator5; Discussions 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 levant to the preparation of the financial statements to ensure these were in place throughout the year; Evaluating management's controls designed to prevent and detect irregularities,. Identlfylng and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions. and Reviewing minutes of trustee meetings. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material rnisstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transartions reflected in the financial statements, as 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 responsibilities for the alfdit of the financial Statements is located on the Financial Reporting Council's website at.. www.frc.or auditorsres onsibilities. This description forms part of our auditorfs report. Use of our report Thi5 report is made solely to the Char$ 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 responsibilkty 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. Haysmacintyre LLP Statutory Auditors 10 Queen Street Place London EC4R IAG Date: If J4 lo Z* 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 Actlvlties Period ended 31 March 2024 Note 2024 UnreMrl¢ted fvnds 20VI 2024 Re5trlrted Endowment fvnd$ funds 2024 Total funds 2023 Total lunds Income and endowments from.. Donations and leg3cles Ch3ritable actlvitles Investment incorne 132,125 3.485 184,154 132.125 3,485 590,440 649.018 1,281 448,153 70,216 336.070 Total income 319,764 70,216 336,070 726.050 1,098,452 Expendlture Expenditure on.. Ralslng fund5 Charitable actNities 128,0391 19,7301 112,0031 1300.0001 152.6451 192,6871 1309,7301 119,1751 1618,3981 Total expendltu 137,7691 1312,0031 152,6451 1402.4171 1637,5731 Net eainslllossesl on Invèstments 433,092 194,824 893,361 1.521,277 1735.5211 Net lexpendituiell income 715,087 146,9631 1,176,786 IW,910 1274,6411 Transfers between funds Net movement In lunds 715,087 146.9631 1,176,786 1,844,910 1274,6421 AOn([lIatIon of funds Tot31 funds brought forward 7.794,678 4.128.760 10,275,972 22,199,410 22,474,052 Total funds carrted forward 8,509,765 4,081,797 IIA52.758 24,IM4320 22,199AIO There were no other recognlsed gains or losses Other than a5 shown above. All Incorne and expendlture derwe from contlnulng actwities. See Note 3 for comparative Ststement of Flnancial Activities analysed byfunL15 io
The London Symphony Orchestra Endowment Trust Balance Sheet As at 31 March 2024 2024 Unrestri¢ted funds 2024 2024 2024 Total funds 2023 Total funds Restrlcted Endowment funds funds Note Flxed assets Tangible a55ets Investment assets li 545,000 6.954,249 58.753 $45,000 11.452,758 21,726,201 58,753 545,000 19,259.988 72,740 12 3,319.194 Loan5 13 Total fixed assets 7,558,002 3.319,194 11.452,758 22,329,954 19,877,728 Current assets Oebtors= amounts falllng due within one Year Loans 14 45,000 25,144 890,619 45,OlX) 25,144 1.653,222 595,969 32,073 1.709,967 13 sh at bank 762,603 Total current assets 960,763 762,603 1,723,366 2.338.009 Current Ilabllltles Creditor5.' arnount5 falling due within one year Is 19,0001 19,0001 116,3271 Net ¢urrent assets 95L763 762,603 1,714,366 2,321,682 Total net assets 8,509.765 4.081.797 IIN52,758 24,044,319 22,199rt10 Total funds of the charity Funds brought forward 16 7,794,678 4.128,760 10.275,972 22,199,410 22,474,052 Excessllshortfalll of income overexpendvcure for the year 281,995 1241.7871 283,425 323,633 460,879 Rea1ised and unreali5ed increase I Idecreasel in the value of Investment assets 433,092 194,824 893,361 1,521,277 1735,5211 Funds carried forward 8.509.765 4,081.797 11.452,758 Z4.044320 22.199,410 The notes on page5 13 to 24forrn p3rt of these accounts. Approved bythe Trustees on 8 July 2024. Signed on behalf of the Board of Tru5tee5 CLLO Charles Clark Chairman li
The London Symphony Orchestra Endowment Trust Statement of Cash Flov Yearended 31 March 2024 2024 2023 Notes Cash used In operating actlvitie$ 1200,0021 1844.9941 Cash flowsfrom investing actl¥ltie5 Incorne from Investments Cash proceeds from the Sale of Investrnents Purchase ot investments 590,440 448,153 17,332 18,728,949 1464,5151 118,9L8,7351 Deuease In ¢ash and cash equivalents In the year 156,7451 1586,6271 Cash and cash equDialents at the beginning of the year 1,709,967 2.296,594 Total cash and cash equivalents at the end of the year 1.653,222 1,709,967 Recon¢iliation of net movement In funds to net cash fiowfrorn operatlng a¢tivltie5 2024 2023 Net movement in funds Unre811sed Igain5l/losses on investments Dividend 8nd interest inco froTn investments Decreasellincreasel in loans Decrea5e/lincreèsel In debtors IDecrÈasellincrease In creditors 1,844,910 12,019,030) 1590.4401 20.916 550,969 17,3271 1274,6421 306,466 1448.1531 112,754 1549,9461 8,527 Net cash used In oper¥tin¥ actlvltles 1200,0021 1844,9Y41 Analys1$ of nei funds 2024 2023 Cash at bankand in hand 1.653,222 1,709,967 12
The London Symphony Orchestra Endowment Trust Notes to the flnancial ststements Year ended 31 March 2024 l Accountin¥ policie5
18a$i$ of preparatlon
The financial 5tatement5 have been prepared In accordance with the Financial Reporting Standard applicable in the UK Republic of Ireland IFRS1021. the Statement of Recommended Practitr applicable to charities preparing their a¢counts In accordance with the Financial Reportin8 Stsndard applicable ID the UK and Republlc of Irel8nd IFRS 1021 effective l January 2015. The financial stèternent5 have been prepared to give a 'true and fairf view and have departed frorn the Charities (Accounts and Reportsl Regu13tions 2008 only to the extent required to provlde a 'true and f31r vie. Thls departure has involved following Atcounting 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 rather than the Accounting ènd Reporting by Charities.. Statement of Recommended Practlce effective from l April 2005 which h3s since been withdrawn. The financial 5taternents are drawn up under the historical cost conventlon except that investments are carried at fairvalue. TheTrust meets the definition of a Public Benefit Entity under FRS 102. bl Preparatlon of accounts on a going concern basi5 The financi315tatements h)ve been prepared on the bèsis that the Trust is and will remain a going concern for the forÈseÈable future. At the year-end the Trust has signrficant net a55ets and rninimal liabilltles and operating costs. Gr8nts are only awarded if sufficient fund5 are available to fund the necessary p8yment5. De5Plte the on-going irnpacts of the pandemic, and having reviewed expected future £ashllow5, the Trustees have a reasonable expectation that the Trust has adequate resource5 to continue its 3Ctivities for the foreseeable future and consider that there were no material uncertainties overthe Trust's financial viabillty- I Income Income is recognised when the charity h?5 entitlement to the funds, any performance conditions attached to the itern of income have been met, It Is probable that the income will be received and the arnount can be measured Donations are recoÉnlsed when the Trust has been notified in writing of both the amount and settlement date. In the event that a donation is subjert to conditions that require a level of performance before the charity Is entltled to the fund5, the income 15 deferred and not recogni5ed until either those conditlons are fully met. or the fulfilment of those conditions 15 wholly within the control ol the charity and it is probable that those conditions will be fullilled in the reporting period. Legacy gift5 are recognised on a case by case basls fr>llowlng the granting of probate when the adrninistratorlexecutor for the estate has communlcated In wrrting both the arnount and 5ettlernent date. In the event th8t the gift is in the form of an asset other than cash or a financial asset traded on 8 recognised stock exchange, recognition is Subject to the value of the Elft belng rellably measurable with a degree of reasonable accuracy and the title to the assÈt havlng been transferred to the charity. Investment income and interest receivable are recoEni5ed on an accruals basls. dl Funds The General Fund Is a general unrestritted fund and represents fund5 which are expendable at the discretion of Trustees in furtherance of the general objectives of the Charity and which have not been deslEnated frir other purposes. Such fund5 represent investrnent5,104ns and working capit31 balances. Restricted funds are fund5 subject to 5pecrfic re5triction5 imposed by the donors. ThesÈ funds are not avallable for the TrusteÈs to apply atthelr dlscretlon. The purpose and use of the restricted funds 15 set out in the notes to the financial ststements. Endowment funds are funds whlch the Trustees are legally required to Invest for a period of at least 25 ye8rs for the Charity's purposes. Further details ol all funds are glven In note 16. 13
The London Symphony Orchestra Endowment Trust Notes to the financial Statements Yearended 31 March 2024 Accounting pollcles l¢ontinuedl el Expendlture Expenditure 15 recognlsed on accru81s basis. fl Allotstion of support and 8overTran costs General 5UPPOrt Costs relatingto the operation of the charity* which are minimal. are borne by the London Symphony Orchestra and are not recognised in these financial 5tstements. Governance costs cornprlse all costs involvlng the public accountability of the charity and its compliance with regulation and good practice, includlng Statutory audit fees and legal fee5. Governance costs are related to Charitable 3Ctlvlties and have therefore been included under this heading. 81 TangSble flxed a55et5 Tangible fixed assets are ststed at cost and present three hiEh quality string instruments. These instruments have not been depreciated because the Trustees a of the opinlon that the net resldual value is at least equal to the ori8inal c05t. h) Investment$ Investments are ststed atthe market value as indicated by the Report of the Investment Managers to the Trustees as at the Balance Sheet date. Any resulting unrea115ed gain or loss Is allocated to the fund to which lateS within the Statement of Financial Activities. 11 Financlal InstYument5 and concesslonary loans Flnancl#l 35sets and financial liabilities are recogni5ed when the charity becomes a partyto the contrattual provisions of the instrument. The charity Dnly has financial assets Bnd financlal Ilabilitie5 of a kind that ou&lify as baslc flnancial Instruments. Baslc financial instruments are initially recognised at tran5attion value and subsequently measured at their Settlement value. Trade and other debtor5 are recognlsed at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any discounts due. Cash at bank and cash in hand includes cash and short term highly liquid invesiments with a shorr maturity of three months OT less from the date ol acquisition or opening of the deposit or similar 3CCOUnt. Creditors and provision5 are recogni5ed where the charY has a present obllgation resulting from a past event th8t wlll probably result in the transfer of funds to a third party the amount due to settle the obligation can be measured or estlmated reliably. cditorS and provisions are normal recognised at their settlement amount after allowing for any discounts due. Conce55ionary loans made to members of the LSO to assist them in the pur¢ha5e of Instruments are ini(ially recognised at the 3moynt paid with the Carrying amount In subsequent periods adjusted to reflect interest, repayments and any irnpairment. jl Taxatlon The London Symphony Orchestra EndowrnentTrust is a registered ¢h3rity and is thus exetnpt from tsx on incorne and gains falling wrchin Part 10 of the Income Tax Act 2007 or 5256 of the Taxation of Chargeèble Gain5 Act 1992 to the extent that these are 8pplied to its charitable obje¢t5. No tsx charges have 3risen In the Trust. 14
The London Symphony Orchestra Endowment Trust Notes to the financial statements Year ended 31 March 2024 2 Critical account4ng judgements and key sources ol estlmatlon uncertainty In the application of the charity'5 accounting pollcles, which are described in Note I, the Trustees are requlred to make judgements, estirnates and assumptions about the carrying amounts of assets and Ilabilltles that are not readily appaient from other sources. The estimates and assixiated assumptions are based on historical experience and other factors that are considered to be levant. Actual restslts may differfrom these estimates. The estimètes and underlyin8 a55umptiong arÈ reviewed on an ongoing basis. Revisions to accountlng estSm3tes are recognised in the period In which the estimate is revised if the revislon aff@tts only that period. or in the period of the revision and future periods if the revision affects both current and future periods. The Trustees do not consider there are any trrtlcal judgements or sources Df e5tirnation unrtainty requirlng (tisclosure beyond the accounting policies Ilsted èbove. 3 Comparative Statement of Flnanclal Actlvlties and Balance Sheet Comparatlve Statement of Flnancial Activities Note 2023 2023 2023 2023 Totsl Unrestrkted funds Restricted Endi)wmÈnt funds fvnds funds l•¢ome and endowmentsfrorn.. Donations ènd legacies Charitable activitie5 Investment income 649,018 1,281 95,777 649,018 1,281 448,153 351,376 Total IncoTh 747,076 351376 1,098.452 Expenditure Expenditure on.. Raising funds Charitable attwities 15,3691 1106,5921 13.5531 1511.8061 110,2531 119,1751 1618,3981 Totol expendlture 1111,9611 1515.3591 110,2531 1637,5731 Net Ealns on investments 1165,1681 189,2411 1481,1121 1735.5211 Transfers between funds 133,404 1133,4041 Net movement In fund5 469.947 1119,8201 1624.7691 1274.6421 Reconciliation of funds rotal funds brought fotwafd 7.324.731 4.248,580 10.900,741 22.474,052 Totalfunds carrled forward 7,794,678 4,128.760 10.275.972 22,199NIO 15
The London Symphony Orchestra Endowment Trust Notes to the financial statements Yearended 31 March 2023 3 Comparatlve Statement of Financial Actlvltles and Balance Sheet Icontlnuedl Comparatlve Balance Sheet 2023 Unrestrlcted funds 2023 2023 Restrirted endowment funds funds 2023 Total funds Note FIKed assets Tangible assets Investments assets Loans li $45,000 5,917,859 72,740 545.000 19.259,988 72,740 12 3.066,157 10,275,972 13 Totalfixed a55et5 6,535,599 3,066,157 10,275,972 I977.728 Current asset$ DebtOf5.' arnounts falllng due wtthin one Loan5 14 595,969 32,073 647,364 595,969 32,073 1,709,967 13 Cash at bank 1,062,603 Total ¢utrent assets 1,275,406 1.062,603 2.338,( Current Ilabilitie5 Creditors.. artbounts falllng due within 15 116,3271 116.3271 Net current asset$ 1,259.079 1,062,603 2,321,68Z Tal fjet assets 7,794,678 4.128,760 10,275,972 22.199AIO Total funds of the charity Fund5 brought forward 17 7,324,731 4.248.580 10,900,741 22,474.052 (shortfall)/e¥SS of income over eXpendItu for 635,115 1163,9831 110,2531 460,879 Reallsed and unrealised increase / Idecreasel in 1165,1681 189,2411 1481,1121 1735,5211 Transfers between funds 133,404 1133,4041 Funds carrledforward 7.794,678 4,128,760 10,275.972 22,199,410 16
The London Symphony Orchestra Endowment Trust Notes to the flnanclal statements Period ended 31 March 2024 2024 2023 4 Irk£ome from donotlOn5 and le&acies Donations 23.781 108.344 50,046 598.972 Legacles Totsl income from donatlons and lega¢ies 132,125 649,018 All Income from donatlons and legacles In the year relates to Unre5trlcted Funds. The total value ol donations received from Trustees during the year was £12.173 12023.. £nill. 2024 2023 S Income Irom charltable actlvltles Loan interest receivable from player loan5 3.485 1,281 Total Income from charStable actlvltles 3,485 1,281 All InCoW from charltable attivitles relatÈs to unrestritted funds. 17
The London Symphony Orchestra Endowment TTUSt Notes to the financial statements Perlod ended 31 March 2024 2024 2023 6 Investment Income Dividends and interestfrom investments 590,440 448,153 Totsl investment Income 590,440 448,153 2024 2023 7 Expenditure on raisingfunds Investment management Costs 92.687 19,175 Total expenditure on ralslngfunds 92,687 19,175 2024 2023 8 Expemllrure on charltable actlvltles Grants to the LSO Group (see Note 101 Govemance costs 300.000 9,730 609,836 8,562 Total expendItU on Charitable actlvltles 309,730 618,398 20Z4 2023 9 Net Incomellexpenditurel Is stated after ¢hargin¥'. Audltors, remuner*ion- audit fees 7,500 6,825 The Trustees dld not receive any rernuneratlon for their Services to the Trust nor were they reimbursed for any expenses in either year. 18
The London Symphony Orchestra Endowment Trust Notes to the financial statements Year ended 31 March 2024 Grantsto Instltutlons 2024 2023 10 Analysis of Krants payable and lated party tran$artions Vnrestritted General Fund grant to LSO Ltd Unrestricted GÈneral Fund grant to LSO Prtsduttions Ltd for LSO Discovery Strategic Fund grant to LSO Ltd StratsÉlc Fund grant to LSO Produttions Ltd for LSO Dlscovery Anglo-japanese Fund grant for the LSO'S work in Japan DSgltal Fund grant to LSO Llve Ltd for Movlng Muslc dlgltal prolecis L50 Dlscovery lone-offl Fund grant to LSO Produrtlons Ltd for LSO Dlscovery Restritted Centre for Muslc Fund grant to LSO Ltd for concert Bt St Paul's Cathedral 28,030 30,000 40,000 140,275 300,000 321,530 50,000 Total grants to the LSO Group 300,000 60996 As explalned In the Trustees, report, London Symphony Orchestra Ltd Ireeistered charity nurnber 2323911 is a connected charity. Grants made to the LSO and Its subsldlarfes, LSO Productlons Ltd and ISO Lfve Ltd during the year are shown above. There were no other related partytTansactions in the year. 11 Tangible red a$5et5 Musical Instrument5 At l April 2023 545.000 At 31 March 2024 545,000 Net boDkvalue At 31 March 2024 545,000 At l April 2023 545,000 19
The London Symphony Orchestra Endowment Trust Notes to the financial statements Yearended 31 March 2024 2024 2023 IZ Investment a55ets Investment portfolio Market value brought forward at l Aprll Additions 0i5posa15 19,259,988 464,515 117,3321 19,707,171 19,376.668 18,918,735 118,728,9491 19,566,454 Increase/ldecreasel In market value 2,019,030 1306,4661 Total irwe5tment assets 21,726,201 19,259,98B An anatysis of the m8rket value of investments at the year end Is provided below.. 2024 2023 sh Liquid ShortTerm Depos$ Fixed income/bond5 UK equrcies Overseas equities Hedge funds, private equity funds and other alternate$ Property funds 1.612,399 1,145.939 3.795,673 871,395 12,394,662 1.261,102 645,031 1,111,925 1,365,730 3,300,178 3,061,518 7,661,617 2,041,378 717,642 Total 21,726,201 19,259,988 There are no indwidual investments In excess of IO% of the total portfolio. The value of the Investment portfolio at 31 May 2024 wa5 £24,157,671. 20
The London Symphony Orchestra Endowment Trust Notes to the financial statements Year ended 31 March 2024 2024 2023 13 Loans Amounts owed by LSO players Due wf(hin one year Due after one year 25,144 58,753 83,897 32,073 72,740 104,813 The LSO players to whom conce55ionary loan5 have been made are shareholders of London Symphony Orchestra Ltd. The amounts owed by the LSO players are payble over varying periods usually not exceedlng 7 years. All loan5 bezr interest at a variable rate linked to the Bank of England base rate. There were no loan5 to players that h8d been committed to but not taken up as at the 31 March 2024. 2024 2023 14 Debtors.. amountsfalllng due wlthln one year Accrued incorne 45.000 595,969 45,000 595,969 Accrued income prirn8rily relates to legacles to whlch the Trust is entitled, and gift aid payment5 not yet recelved. 2024 2023 15 Creditors.. amountsfalllng due wlthln ortè year Accruals 9,0 16.327 16,327 21
The London Symphony Orchestra Endowment Trust Notes to the financial statements Perlod ended 31 March 2024 Balance alance 31 March 1024 16 Ststernem oflunds IApTII 2023 Galns and Income Expendltsre Trath512r5 Unrestricted funds.. General Fund Strate8ic Fund Wallis Fund 5,586,612 2.107,913 I,153 267,415 49,421 2,928 128,9721 18,3341 14631 372,350 51,775 8,967 6,197,405 2,200,775 111,585 Total unrestrirted fvnds 7.794.678 319,764 13Y.7691 433,092 8.509.765 Restricted funds.. LSO Discovery Ilong-rerml Fund LSO Discovery Ishort-terml Fund LSO DSscovery lone-offl Fund Di8ltal lintornpl Fund LSO St Luke's Fund Japanese Student Scholarship Fund 2,019,359 513,048 60,773 9,443 19,8331 12,1701 178,051 16,773 2,248,350 537.094 821,159 6,0 175,194 13(YJ,WOI 521,159 600,0( 175,194 Totsi rertrirtedfund5 4,128,760 70.116 131Z,0031 194,824 4081,797 Endowment funds.. Oi8ital Fund 10.275,972 336,070 152,6451 893,361 11,452,758 Total etTrt*)wmethtfund5 10,275,97Z 53670 152.6451 893,361 II452,758 Total funds 22,199AIO 726.050 1402,4171 1,521,277 24.044,310 Detai15 Of the variou5 funds are set out below.. Gerteml Funé This is the Trust's primary unrestricted fund Sn whlch all funds. excÈptth05e with specific restrfctSons, are held. Part of the fund COtnpri5es instruments which a 103ned to the LSO for use by its players. 3nd the malorSty of funds are invested with the investrnent return used to make grants to the LSO. Strategic Fund This fund was created to reEeive income during the Covid-19 pandemlc as part of the Alway5 Playing hppeal. Thls Is an unrestricted fund, with the main purp05e being to provide strateÉlc support to support the LW during 3nd after the pandemk, in partScular to support it5 rllusic13ns and a551St in the transltlon to a new businÈss model oveTcoming ye8r5. Wtsllis Fund This Ss èn unrestricted fund which is accounted for separately In Ilne with the qU]reMents of 3 legacy th3t was recelved In 2021. Income and capit31 growth from the fund5 Invests(S will be usèd to 5UPWIrt LSO Discovery's work. The fund w511 be tranSferd to thÈ General Fund after ten years, in March 2032. 22
Thè London Symphony Orchestra Endowment Trust Note5 to the financlal ststement5 Period ended 31 March 2024 16 Statement of fvnds Icontinuedl SO Discovery (long-term} Fund This fund is held for the long-terrll with funds invested and the investrnent return used to make grants to support the work of LSO Discovery13nd related education and community projett51. LSO Discovery Ishort-term) Ftsnd This fund Is to be used to support the work of LSO Dlscovery land related education and community projectsl over a defined time frame, typically less than 10 yeark ISO Discovery lone-Dffl Fund This fund has been established following a donation which w35 to be used to support Distovery'5 work. Digitol FtsndtsndDigitol lincome) Ftsnd These two funds are used to fund audio visual recordings of concert performance5 by the LSO and the dlstribution of these worldwde, including to young people and new audiences. The funds are Invested for the long-term with investment returns available to be drawn down. Until March 2023, only income generated could be drawn down- thi5 income is held separately in the Digital Ilncomel Fund. From April 2024. a total return approach been applled to the Digital Fund through which both income and capital galns can be drawn within pararneters desi8ned to protectthe value of the fund overtime. LSO Stluke's Fund This fund has been established to recewe funds to be used t0 5UPPOrt capital projects and other activity3t tso St Luke's. JaponeseStudentScholorship Fund This *und was established to build Angltrjapanese cultural relotions by 5upportin6 the LSO'5 work in Japan and to provide scholar5hip5 to Japanese music students to 3951st them In studying èt the Guildhall School of Music & Drama. The remaining funds held can only be used for scholarshlps. Centrefor Music Fund The Centre for Music Fund represents a donation towards the CÈntrÈ for Music project. As that project 15 now not progressln& itwas agreed with the donor that thefunds should be applied toward5 ajoint projert between the LSO and the Guildhall School of Music & Drama in June 2022. Comparative movements in fundsforthe prior year are shown in Note 17 to these accounts. 23
The London Symphony Orthestra Endowment Trust Notss to the Ilnanclal statements Period ended 31 March 2024 Balance l April 2022 Balance 31 Marth 2023 17 Comparatlve statement olfunds Galns and losses Imcome Expendlture Transfers Unrestricted 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 2,107,913 100,153 Total unre5trlcted funds 7,324,731 747.076 1111.9611 1165,1681 7,794,678 Restricted funds.. LSO Dlscovery Ilon$-terml Fund LSD Discovery Ishort-terml Fund LSO Dlscovery lone-offl Fund Digital lincomel Fund LSO St Luke'5 Fund Japanese student Stholarshlp Fund Centre for MusSc Fund 2.071,128 506,457 321.53D 382,055 600.000 317,410 50,000 39,812 4,986 11,8231 11,2601 1321,5301 189.7581 2,865 2.019,359 513,048 305.7(M) 133,404 821,159 600,0 175,194 878 1140,7461 150,0001 12.3481 Total restrlcted funds 4.248,580 351,376 15153591 189,Z411 133.404 4128.760 Endownent funds.. 10,900,741 110,2531 1481.1121 1133.4041 10,275,972 Total endowment funds 10.90CI.741 110.2531 1481,1121 113a,4041 10,275,972 Total funds 22,474,052 1,098N52 1637,5731 1735,5211 22.199.410 24
The London Symphony Orchestra Endowment Trust Notes to the flnancial ststemènts Perlod ended 31 Marth 2024 18 Dlgital Fund- Total Return Approach With Effect from 1st April 2023, the Trust adopted a total retuin approach to the Digit31 Fund in line with the pro510$ of The Charitie5 (Total Return) Regulations 2013. Under thi5 3ppr03ch, the Digital Fund is invested with the aim of m?ximi5ing the total rerurn (income and capital gain51, with an appropriate proportlon of unapplied total return available to be drawn down each vear to Support charitable activity. Until any unapplied total leturn is drawn down, It remains invested on the same bèsis as the rest of thls fund. No drawdown of UTFapplipd total return was tnade during the year as charitable 3CtNity ha5 been funded from previously attumulated income held in the Digital lincomel Fund. Dl8lt•l Fund Openingvalue of fund at l Aprll 2023 Less.. Inlfjal value of thefund Isee note below) 10.275,972 18,831.6061 Unapplied Total Return Brought forward IA44,366 Add.. Investment return (net of fees) 1,176.786 Less.. Drdwdowns Unapplied Total Return carried fotward Bt 31 March 2024 2,621,152 Add.. Initi41 value of the fund 8,831,606 Closlngvalue of the fund at 31 March 2024 Includlng unapplled total reN¥n IL452,758 The initial value of the fund Is the total amount held at the conclusion of the fundrai5in6 (ampai8n that led to the creation of thi5 fund. 19 PostBalante Sheet Events Shortly 3fter the year end, the Trust recelved formal conflrmafjon of è restrfcted 8r3ntof £2.Sm from the Helen Hamlyn TAJstto create an endowment fund. The return from thi5 fund will be used to 5UPPOrt the London Symphony Orchestr3'5 work with young composers through The LSO HelÈn Hamlyn Panufnik Young Composers Scheme. The Trust also recelved a restrirted donètion of £2m in June 2024 the purpose of which is to support the costs of the LSO'S refurbishment of LSO St Luke's durin8 2025. 25