OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-12-31-accounts

NATIONAL FEDERATION OF MUSIC SOCIETIES

Trading as Making Music

Annual Report and Financial Statements

For the year ended 31 December 2020

Company Number 308632

Registered Charity in England and Wales Number 249219

Registered Charity in Scotland Number SC038849

National Federation of Music Societies Annual Report & Financial Statements For the year ended 31 December 2020

Contents

Directors’ and trustees’ report ……………………………………………………………….… 1
Independent auditor’s report ….……………………………….………………………………. 26
Consolidated statement of financial activities ………….…………………………….. 30
Consolidated balance sheet ………………………………………………………………………. 31
Charity balance sheet ……………………………………………………………………………….. 32
Consolidated statement of cashflows ……………………………………………………….. 33
Notes to the financial statements ……………………………………………………………… 34

Crystal Palace Progress Band meet online Making Music Virtual Concert Series on YouTube

National Federation of Music Societies Annual Report For the year ended 31 December 2020

Reference and administrative details

Name of Charity National Federation of Music Societies trading as Making Music Company Number 308632 Charity Number 249219 (England) SC038849 (Scotland) Principal Office & 8 Holyrood Street Registered Office London SE1 2EL Directors and Trustees Dorothy Wilson MBE FRSA ( Chair ) Clare Birks (Vice Chair; Treasurer) Celeste Berteau Heather Catchpole retired 4 March 2020 Abigail Charles Robert Guest Paul Graham Rhiannon Harrison appointed 8 September 2020 Paul McKinley Carol Pemberton MBE appointed 24 November 2020 Andrew Rixon Glynne Stackhouse resigned 20 May 2020 Valerie Taylor Key Management Chief Executive Barbara Eifler Finance Director Helen Evans from 20 April 2020 Membership & Ben Saffell Operations Director Marketing & Elizabeth Clark until 1 September 2020 Communications Director Communications Director Natalie Joanes from 1 September 2020

Bankers CAF Bank Ltd 25 Kings Hill Avenue West Malling Kent ME19 4JQ Independent Auditor Amy S Healey FCA CTA DChA Lindeyer Francis Ferguson Limited Chartered Accountants North House 198 High Street Tonbridge Kent TN9 1BE

1

National Federation of Music Societies Annual Report For the year ended 31 December 2020

The trustees (who are also the directors of the company for the purposes of company law) present their report together with the audited group and parent charity financial statements for the year ended 31 December 2020. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and in accordance with the governing document, current statutory requirements and the provisions of "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019) - (Charities SORP).

2

National Federation of Music Societies Annual Report For the year ended 31 December 2020

Making Music – who we are

Making Music is a charity and the UK association for leisure-time music, with 3,560+ music groups in membership, comprising around 210,000 hobby musicians.

We support our members with practical services and artistic development opportunities, we connect them with each other, the wider sector and relevant other organisations, and we celebrate and advocate for the leisure-time music sector, and its benefits – physical, social, psychological, educational, economic - to individuals and communities.

Summary of the year

2020 was the year when Covid-19 meant leisure-time music groups stopped to meet in person for rehearsals and cancelled all their performances from mid-March onwards. Our members immediately called on us to help – and Making Music did:

To focus our activities on the essentials of members’ needs, we undertook two surveys of members in 2020, with a third one following-up in March 2021.

When and where leisure-time music activity was permitted, we supported members with risk assessment guidance and templates to enable them to meet, to counteract the decline in mental well-being by their participants, the loss of income to the music professionals usually engaged by them, and groups’ fear of losing their musical abilities as well as participants.

Making Music March 2020 survey: what does suspending your regular activity mean for your members and group?

3

National Federation of Music Societies Annual Report For the year ended 31 December 2020

In summary, 2020 was entirely different but also not different from a usual year for Making Music:

Objectives and Activities

What does Making Music do?

Our vision

Everyone has opportunities within reach to make and present their kind of music with others.

Our mission

Making Music is a membership organisation which supports, stands up for and celebrates groups of people making and presenting music together in their leisure time across the UK.

4

National Federation of Music Societies Annual Report For the year ended 31 December 2020

Our objectives

In the five years of our current business plan (2017-2021), Making Music will be …

1. Supporting members: Help Making Music groups become stronger and better able to connect with new members and audiences.

2. Supporting members/supporting leisure-time music: Stand up for and celebrate Making Music groups, their members, and others coming together to make or present music in their leisure time across the UK.

3. Supporting members/supporting leisure-time music: Invite and welcome all kinds of music groups to become part of the Making Music community .

Due to the pandemic, Making Music decided to extend the life of its current business plan by one year, so it will guide our direction and activities until the end of 2022.

How do our activities benefit the public?

Our main activities and who we support are described below. All our charitable activities focus on our charitable objective to ‘maintain, improve and advance education by promoting the art and practice and public performance of music throughout the United Kingdom and in other countries’ and are delivered to further that charitable purpose for the public benefit. The trustees have complied with their duty to have regard to the Charity Commission’s guidance on public benefit when exercising any powers or duties to which the guidance is relevant.

The trustees are confident that Making Music’s activities offer public benefit:

5

National Federation of Music Societies Annual Report For the year ended 31 December 2020

How does society benefit?

Leisure-time music groups made up of hobby musicians create many benefits for the individuals taking part in their musical activity; for the individuals experiencing the resulting performances; and for the communities in which they are active.

All these benefits are created by usually very small volunteer-led and -run groups. Making Music’s support enables them to continue providing these benefits to individuals and society and facilitates more and new people benefitting by joining or setting up such music groups.

“

I would also like to say thank you to everyone at Making Music for all that they do to support music groups both in normal times and particularly in the past year. There is clearly a lot of effort and brainpower being exerted to provide clear and useful resources. Gold stars all round.” – Making Music member

Thanks

The Board would like to thank the staff throughout the UK who continue to put in a huge effort on behalf of members. We are fortunate that every member of staff is deeply committed to the cause of live music-making in communities. In 2020, whilst mostly working from home, not always in ideal circumstances, they went even more above and beyond their usual commitment and worked tirelessly to support members and respond to their need.

Our thanks must also go the funders who have made a substantial contribution during 2020. These are: Arts Council England; Creative Scotland; PRS for Music Foundation; Philip & Dorothy Green Music Trust; Pauline Thompson legacy.

Making Music also owes its 108 volunteers a large debt of thanks and would like to take this opportunity to thank them and pay tribute to their dedication and enthusiasm:

1 President, 13 Board members, 65 Listeners, 9 Selected Artists Panel members, 5 Youth/Online volunteers, 2 Funding volunteers, 4 Digital volunteers, 1 Web Content volunteer, 6 Member Contact volunteers and 2 office volunteers.

6

National Federation of Music Societies Annual Report For the year ended 31 December 2020

Achievements and performance

Our activities and objectives

For 2020 we are still describing our activities under the same headings – even though, due to the pandemic, the detail of those activities has to some extent changed. Making Music still supports members and still supports leisure-time music – though the ‘how’ was adapted to reflect the circumstances dictated by the pandemic.

1. Supporting members

Helping Making Music groups become stronger and better able to connect with new members and audiences, practical services and artistic development opportunities.

Our tailor-made affordable insurance covers all aspects of leisure-time music group activity and is made possible by our buying power on behalf of over 3,600 groups. In 2020, insurance policies still offered value for money, but did not cover pandemic cancellations.

• 94% of members took insurance in 2020 (2019: 95%)

We offer guidance on Performing Right Society (PRS) responsibilities and a way of declaring and paying PRS royalties for performances in unlicensed venues via us, with a discount. In 2020, there was barely any in-person activity, so we will be collecting very little in terms of royalties in 2021. Guidance was still in demand to understand responsibilities related to online activity.

• £48,421 royalties collected from members (2019: £132,076)

Safeguarding guidance, templates, training and Disclosure & Barring Services checks; in 2020, we also provided guidance on online safeguarding.

Advice and support via email or telephone from friendly and well-trained staff who understand how groups are run and what their issues are; this became very important in 2020 and was supplemented by open access online member meet-ups with break-out rooms facilitated by staff which enabled members to ask questions on topics of concern.

• Over 2,390 phone calls with 1058+ groups (2019: 1,400 with 800+)

7

National Federation of Music Societies Annual Report For the year ended 31 December 2020

200+ online resources in three categories: ‘have to know or do’; ‘help to run the group better’; ‘inspiration for a brighter future’. Resources include written and audio-visual guidance, template policies and contracts, case studies, online tools; in 2020, Making Music produced an extraordinary amount of new resources to support members with new questions and issues never faced before, in three categories: legal/ compliance during Covid-19 including guidance tool on permitted activity and research compilations; ‘how-tos’ , e.g. rehearse on Zoom, edit audio and video, risk assess for in-person return; inspiration: how to keep up social and musical activity remotely during pandemic.

Dissemination of information: Highnotes membership magazine three times a year; iNotes monthly e-newsletter (available to all); emails on specific opportunities; in 2020, from April to July we published our e-newsletter twice monthly to disseminate as quickly as possible the large volume of resources we were producing, and have been sending out more than the usual volume of broadcast emails throughout the year too.

Discounts and subsidies: discounts negotiated with corporate members and partners; subsidies towards cost of engaging professional musicians; in 2020, as in-person events were mostly not permitted, artists’ subsidies were re-purposed for online events and livestreaming.

8

National Federation of Music Societies Annual Report For the year ended 31 December 2020

Specific services: e.g. charity registration service, Orchestra Tax Relief (OTR) service, MM Platform (new in 2019); in 2020, these services continued to be provided.

Promotion: Find-a-group online tool enable public to discover a leisure-time music group near them; vacancies allow groups to engage the music professionals they need; from events listings the public can discover performances in their area. In 2020 , these tools were less used because groups in-person activity was suspended for most of the year. However events page views were pushed up due to members looking for help through Making Music events with running their groups during coronavirus.

Artistic development: Adopt a Composer; legacy pieces free to Making Music groups. In 2020, the previous year’s matched pairs continued to work together and were joined by a new cohort, launched digitally, from September. Both sets will complete in 2021.

Artistic development: support for instrumental group conductors. In 2020, there was one event prior to lockdown.

9

National Federation of Music Societies Annual Report For the year ended 31 December 2020

Programming and repertoire inspiration via our online Music Bank database; in 2020, this was less used and relevant whilst leisure-time music activities were suspended.

Artists available for engagements with leisure-time music groups, specially selected, with subsidies via our annually published Selected Artists Guide. in 2020, the guide was published later and will continue to run longer, until February 2022, to enable more bookings for the listed artists and save staff resources needed for other member support.

• Guide published September 2020

Events: annual general meeting, Making Music (consultative) Council meetings, local meetings and events on specific topics; in 2020, online events became a very significant part of our work, responding to member need. We ran general member meet-ups, separate meet-ups in each nation of the UK, expert/speaker-led events, and events focussed on specific topics, with high attendance and incredibly positive feedback.

“ Thank you so much for this exceptional session today. Extremely useful, clear and helpful. You are just BRILLIANT! Thank you!” – Making Music member

In person (Info &
Advice events)		 Online (Info &
Advice events)		 Online
general
meetups		 Online
guest speaker
events		 All online events All
events
No. of
events		 15 36 34 4 74 89
Event
attendance		 286
(av. 19 per event)		 n/a n/a n/a 3688
(av. 50 per event)		 3974
Unique
attendees		 273
(av. 18 per event)		 n/a n/a n/a 1706
(av. 23 per event)		 1979
First-time
attendees		 216
(av. 13 per event)		 n/a n/a n/a 1315
(av.18 per event)		 1531

10

National Federation of Music Societies Annual Report For the year ended 31 December 2020

Average attendance figures were 2.5 times higher for online than for in-person events. But there was also a higher rate of repeat attenders online, underlining the social as well as the practical support function of meetings and reflecting individuals’ enforced inactivity due to prolonged lockdowns over 2020.

We continued with multiple Making Music Council meetings , to enable more members to take part and inform what Making Music does and how it delivers its support to them.

We benefitted 1.5% (5.5%) more groups, despite no focus on recruitment, due to Covid.

This breaks down as supporting:

Groups’ annual income based on their published 2019/2020 accounts (2018/19 in brackets):

With no event ticket income and in most cases reduced subscription income from their participants during 2020/2021, the full impact of the 2020/21 standstill in activity will only be seen when groups renew for 2022.

11

National Federation of Music Societies Annual Report For the year ended 31 December 2020

----- Start of picture text -----
Supported by Making Music, groups upskilled
themselves and got online to stay in touch and make
music
92
68
56
31
26
18
MAR-20 APR-20 MAY-20 JUN-20 JUL-20 AUG-20 SEP-20 OCT-20 NOV-20 DEC-20 JAN-21 FEB-21 MAR-21
% of groups with suspended activities % of groups meeting online
----- End of picture text -----

2. Supporting leisure time music / supporting members

Stand up for Making Music groups, their members, and others coming together to make or present music in their leisure time across the UK

This strand of our activity has looked different in 2020 – it has been a very strong feature of our work in 2020, but different to ‘normal’ years. So what happened?

1. Everything took place online from March 2020: contacts, meetings, events, conferences

This has not all been negative: it has also opened up new opportunities.

Who did we meet and connect with on behalf of our members?

12

National Federation of Music Societies Annual Report For the year ended 31 December 2020

What external events did we speak at and attend on behalf of our members?

2. Almost the entire focus of the whole year was on the effects and fall-outs of Covid-19

This has meant our advocacy and lobbying has looked different; has been a much greater share of our activity; and has enabled us to work with a different and wider group of organisations.

It has also given us a higher profile with civil servants in relevant departments in all four nations; and with politicians of all kinds, local and national, who have been shaping Covid policy and restrictions.

We have also interacted in a much more significant way with the scientific community, in terms of collating Covid-relevant research, contributing where relevant, inviting medical and other specialist academics to speak to our members.

A lot of this work in 2020 was reactive – responding to the ever-changing landscape of Covid19 regulations – and we are very proud of what we achieved, facilitating and enabling hobby musicians to connect online and then resume in-person meetings as soon as possible, in particular influencing the government decision to allow non-professional music activity in England from August 2020. Our work in this area was very significant for close to a million individuals in the UK , and even more so because their leisure-time musical activity was

13

National Federation of Music Societies Annual Report For the year ended 31 December 2020

particularly important to them in this time of increased anxiety, sickness and loss, helping them maintain their mental balance and enabling them to look forward to a better time.

Research

We have been compiling any relevant research for leisure-time music group activity into an open access page, so that our members and the wider leisure-time music sector could understand what underpinned our guidance to them and our interpretation of government documents.

Separately, we introduced a guidance tool – Can my group get back to in person activity? – from July 2020 which was, and still is, being updated almost daily.

We engaged specific speakers from the scientific community to talk to our members about the risks of singing, activity in other countries, and ventilation.

We engaged two digital producers to research, inform and train our members to master the digital world, to enable them to record and edit audio and video at home, supporting them with written resources, videos and webinars with experts.

Lobbying

Singing Network UK, chaired and convened by Making Music, brings together 30 UK organisations with an interest in singing and representing between them the 40,000 choirs (including church and school/youth choirs) and 2m singers of the UK.

When lockdowns eased in July 2020, in England government distinguished between professional and non-professional music activity, not permitting the latter. To make the case for a return of leisure-time music, we ran a campaign #BringBackMyBand

#BringBackMyChoir , supported with a video illustrating our members’ activity, viewed over 16,000 on Youtube and shared widely across social media. Many members also wrote to MPs and the campaign resulted in a change of policy in mid-August 2020.

14

National Federation of Music Societies Annual Report For the year ended 31 December 2020

Responding to consultations

These were mostly Covid-related and ranged from:

3. Non-Covid-19 advocacy

We are particularly proud of our Adult Music Learning Manifesto, launched at the Music Education Expo in March 2020, just before lockdown .

This outlines the landscape of adult music learning and the music learning needs of adult hobby musicians and looks to partner with organisations and stakeholders to make adult music making more accessible to all. The manifesto received a warm welcome and became particularly relevant during the pandemic when so many adults – locked down and perhaps at a loss at home – returned to or started making music.

We also presented this at the Association of British Choral Directors’ annual convention and at one of the Music Industry Association’s Music Education Panel meetings (which we attend regularly).

As musical activity returns in 2021 and organisations are able to focus on non-Covid issues again, we will reprise our work on disseminating the manifesto and looking for partners to work with us to dismantle the various barriers to access for adult hobby musicians. We are already booked to speak at a meeting of the Association of British Orchestras’ Education Managers in June 2021.

We also published research into The barriers to joining a choral society , thanks to the Pauline Thompson legacy which funds a part-time post at Making Music.

This work was presented to our members via our communication channels – magazine, e- newsletter, social media. It was further disseminated at and informed the content of our

15

National Federation of Music Societies Annual Report For the year ended 31 December 2020

very popular member group sessions on recruitment and retention of members, an issue that all of our member groups grapple with continuously, and choral societies in particular. Brexit was not anticipated as having a major effect on our members or the sector; however, there are some implications in terms of (temporary) export and import of personal musical instruments. We have produced information for members and are fortunate in that our close partners, the Association of British Orchestras, have included leisure-time activity needs in their lobbying of the relevant department over Brexit-related issues.

UK nation specific

We were lucky to be accepted with a research proposal about leisure-time music in Northern Ireland, by Queens University Belfast, which will take place in 2021.

Via Culture Counts in Scotland, Making Music contributed to the creation of a Cultural Manifesto for Scotland .

We responded to the Scottish government consultation on the Scottish National Planning Framework 4, making the case for the need of affordable, local spaces and connected infrastructure for community music groups to thrive.

Joined Anthem, Music Fund Wales, as trustee.

Celebrate Making Music groups, their members, and others coming together to make or present music in their leisure time across the UK

Promoted leisure-time music groups via our online Find-a-Group tool, our Events calendar, our communications, incl. Highnotes magazine, iNotes e-newsletter, Selected Artists Guide, PR, social media (Twitter, Facebook and Instagram).

New in 2020: a series of 10 Virtual Concerts, produced professionally, featuring video and audio recordings of nearly 100 member groups.

16

National Federation of Music Societies Annual Report For the year ended 31 December 2020

Offered groups performance opportunities , e.g. on International Make Music Day (21 June annually), to highlight the achievements and offer of leisure-time music groups to a wider public, locally, nationally and internationally.

Our support for Make Music Day went digital in 2020: we commissioned a digital film to which 200 hobby musicians contributed of the Make Music Day anthem Bring Me Sunshine , which was premiered during a live 45 minute broadcast which also included interviews with three member groups.

• 2,700 views on Youtube plus 2,200 for activity in Scotland

Chaired steering group of Make Music Day UK 2020, achievements (despite Covid-19):

Developed broadcast opportunities , e.g. Classic FM annual broadcast of carols by Making Music groups; BBC Radio 3 broadcast of Adopt a Composer pieces, including interviews, to raise the profile of groups and the sector.

New: presented five new (a total of six) awards:

Lady Hilary Groves Prize, for an individual who has made a significant contribution to the musical life in their community; new Best Music Creator for a leisure-time music group; new Best Arranger for a leisure-time music group; new Best Project with New Music; new Best Photo of a Music Group; new Best Contribution to a Virtual Concert (people’s vote); the aim is to celebrate and highlight the achievements of the leisure-time music sector.

Re-appointed Debbie Wiseman OBE as President.

17

National Federation of Music Societies Annual Report For the year ended 31 December 2020

Supporting leisure time music / supporting members

Invite and welcome all kinds of music groups to become part of the Making Music community

What we did in 2020

This objective in 2017 led to research into leisure-time music across a variety of musical genres, and their need for support, development and a voice. The research concluded in 2018 with the Exploring Music Making report, and a Stage 1 implementation plan.

A first result was closer collaboration and partnership agreement with Brass Bands England. This was further developed in 2019 and continued in 2020, growing especially with regard to advocacy work.

Further planned activity in 2020 included setting up the already developed project to support promoters in jazz, folk, and small volunteer-run festivals; this did not happen due to lack of capacity – all our resources were focussed on Covid and in any case live events were not possible. However, Making Music has started developing closer connections with a range of network organisations in folk and jazz, amongst others, partly due to Covid-19 networking and joint advocacy opportunities.

In 2020, we also supported the wider sector by making some of our resources available for free, namely our guidance tool – Can I get back to meeting in person? – and our ‘inspiration’ pages, to support everyone during Covid-19.

Plans for future periods

Plans for 2021

18

National Federation of Music Societies Annual Report For the year ended 31 December 2020

Impact of Covid-19 on Making Music and 2021 plans

There has been a considerable indirect financial impact on Making Music from Covid-19, due to the reduction of member groups’ activities since March 2020. As their membership subscription is based on past (published) income, we expect this impact to be felt even more strongly in 2022 which will also be the turning point, if the pandemic progresses as expected, leading to strong improvement in groups’ and therefore our own fortunes by 2023.

Our experience in 2020 means that we now know what our members need from us in terms of resources and in terms of representing their needs to stakeholders and policymakers. We therefore believe that our plans for 2021 reflect and meet those needs.

We also learnt that it is crucial that we continue to celebrate and highlight the creativity, joy and resilience of our members, both to provide a positive short-term focus for them and to improve understanding amongst policy makers and other stakeholders of the role and significance of leisure-time music groups.

Our Board and staff have proven to be flexible, moving rapidly at all the stages of the pandemic to adapt their working practices and still provide first class support to members. Making Music will continue to focus on supporting its team, practically as well as in terms of mental wellbeing, as a priority, recognising the challenges the last year has created for many of them, personally and at work.

Member groups Misfits Music and Cantiones Choir rehearse outdoors in summer 2020

19

National Federation of Music Societies Annual Report For the year ended 31 December 2020

Financial Review

Financial result for 2020

Our Board and management kept the financial position of the charity under constant scrutiny during 2020. We were fortunate to collect most of our annual income from group membership subscriptions by the first quarter of the year, in advance of the impact of Covid19. From April 2020, efforts were made to carefully manage expenditure, while our Board approved investment in additional resources to support members through the uncertainty of Covid-19.

Cost savings from travel restrictions and moving activities online helped to steady the overall financial position, such that unrestricted general funds at 31 December 2020 were maintained within the reserves policy of 3 to 6 months’ expenditure.

Net unrestricted expenditure was £6,053 (2019: net income of £40,764). However, the impact of unrealised investment losses contributed to overall net expenditure for the year of £24,251 (2019: net income of £12,825).

Total income of £759,403 (2019: £730,049) included membership income of £501,009 (2019: £493,326), reflecting new membership renewals in the first quarter of 2020.

Total expenditure for the year was £766,513 (2019: £729,605), with £33,470 more spent on charitable activities in 2020 than in 2019.

Cash balances of £1,403,755 at 31 December 2020 (2019: 1,628,659) included deferred membership subscription income collected for 2021 and insurance premiums and PRS fees collected from members to be paid over to third parties in early 2021. Net current assets at of £685,205 (2019: £686,265), provide a more accurate picture of working capital.

The trading subsidiary, NFMS Enterprises Limited, generated a profit of £8,318 (2019: £11,089) which was donated under covenant to the charity.

Reserves Position

Total funds held at the end of the year were £848,008 (2019: £872,259).

Of these funds, £312,579 (2019: £329,720 restated) were held in an endowment fund and £177,753 (2019: £178,810 restated) held in funds for restricted purposes. Legal advice received in the year confirmed the permanent nature of the endowment fund. This required a restatement of prior year balances to transfer £73,650 of historic income from the endowment fund to restricted funds (see note 1).

A total of £91,936 (2019: £97,311) was held in designated funds to spend on projects in 2021 and 2022.

The remaining unrestricted general funds of £265,740 (2019: £266,418) include £40,223 (2019: £46,273) which can only be realised by disposing of fixed assets.

20

National Federation of Music Societies Annual Report For the year ended 31 December 2020

Reserves Policy

It is the policy of the charity to maintain adequate reserves to cover between 3 and 6 months of unrestricted expenditure. This target has been set because the charity has a high committed cost base. Staff costs account for approximately 60% of expenditure, with our staff team pivotal to providing the services paid for in advance by members. The second largest cost is office rent, with a new five year lease signed in 2020.

Current unrestricted reserves are £357,676. After deducting designated funds and fixed assets, the remaining free reserves of £225,517 (2019: £220,145) represent 4.5 months’ (2019: 4.9 months’) of unrestricted expenditure, excluding depreciation (based on current year figures) which is within the parameters of the reserves policy.

Investment Policy

It is the policy of the charity to place funds in low risk investments, such as deposits with banks and building societies, the Charities Official Investment Fund (COIF) or CAF managed equity funds.

A proportion of the Endowment Fund represents the sole investment in the CAF Equitrack Fund, with the remainder held in cash deposits. The investment objective is to maintain the real capital value of the endowment, whilst generating a sustainable level of restricted investment income to support charitable activities within the terms of the endowment.

The capital value of the CAF Equitrack Fund decreased by £17,141 this year to £122,580 (2019: an increase of £12,381 to £139,721). This represents an increase of 2% in the amount originally invested (most recent addition in 2016). Investment income earned on the fund in the year was £3,344 (2019: £5,442).

Going Concern and the Financial Impact of Covid-19

With careful financial management, we have invested in services and resources for members during 2020 while maintaining the value of unrestricted free reserves, providing a solid foundation for the challenges of the next two years.

Since the end of the financial year, membership retention for 2021 has held up well, with 90% of members renewing their subscription (normally 96%). This reflects both the resilience of our member groups and the value they place on their membership of Making Music.

However, 22% of members renewed at a lower subscription rate than for 2020, with 49% of members renewing at the lowest rate. This means we will be supporting nearly as many members in 2021 but with significantly reduced income.

Furthermore, the contraction of member activity in 2020 has diminished the charity’s ability to raise income from chargeable member services and other earned sources for 2021.

The timing of membership renewals and other income streams is heavily weighted to the first quarter of the year. By 31 March 2021, 80% of forecast income for 2021 had been earned, providing time to assess financial plans for the remainder of the year.

21

National Federation of Music Societies Annual Report For the year ended 31 December 2020

While members were unable to meet in person, the Board took the decision to part-furlough the staff team between 18 January and 31 March 2021. We also made a successful application to the second round of Arts Council England’s Cultural Recovery Fund. These two sources of income will help to balance general fund income and expenditure for 2021.

It is expected that delays to members resuming activity in 2021 will continue to negatively affect the charity’s subscription and service income for 2022. Medium term financial sustainability is dependent on maintaining reserves during 2021, maximising income for 2022 while keeping costs for both years under control and maintaining strong working capital.

The Board has reviewed several financial scenarios and expects to continue to deplete reserves to support activity in 2022. A membership survey, undertaken in March 2021 and completed by one third of members, has provided useful data for this planning.

At the date of approving the report and accounts, the Board believes there are no material uncertainties about the charity’s ability to continue as a going concern and the financial statements are prepared on a going concern basis.

The Board’s Finance & Compliance committee continues to monitor the developing economic situation, reviewing management accounts and reforecasts for 2021 and 2022 on a regular basis.

Other Principal Risks and Uncertainties

The Board has carried out a review of the major risks to which the charity is exposed and has put in place controls and activities to mitigate those risks which are within their control to influence.

Risk Impact x
Likelihood		 Mitigation
Loss of group
membership		 5 x 3 = 15
(medium)		 -
Listen to sector on needs and deliver
accordingly
-
Maintain & develop services and deliver
them effectively
Lack of financial
sustainability		 5 x 3 =15
(medium)		 -
Prioritise member recruitment & retention
-
Develop earned income in our control
-
Help members maximise their income
-
Raise additional funding
-
Contain costs & keep reserves under
review

22

National Federation of Music Societies Annual Report For the year ended 31 December 2020

Risk Impact x
Likelihood		 Mitigation
Weak governance 4 x 3 = 12
(medium)		 -
Ensure vision, mission, objectives and plan
clear to Board, staff and members
-
Invest time and care in Board
communications, development, induction
& skills balance
-
Policies, procedures & processes in place
with compliance oversight & training for
staff, Board and volunteers
-
Keep abreast of regulatory changes and
best practice
-
Seek professional advice where
appropriate
-
Annual thorough review of risk assessment
Infrastructure /
Resources failure		 4 x 3 = 12
(medium)		 -
Strong focus especially on up-to-date and
fit for purpose IT infrastructure
-
Strong focus on cyber security and secure
data management training and processes
-
Appropriate insurance policies
-
Best practice HR management, focusing on
support and development of staff
Negative impact of
environment		 4 x 3 = 12
(medium)		 -
Regular and systematic monitoring of
external environment for potential threats
-
Regular management meetings to evaluate
and respond to changing circumstances
-
Addressing potential threats through
proactive joint action with others
Reputational
damage		 3 x 2 = 6
(low)		 -
Guidelines for staff and Board external
representation
-
Emergency media plan in place
-
Communicating regularly within sector to
foster understanding
-
Timely & appropriate response to public
comments

23

National Federation of Music Societies Annual Report For the year ended 31 December 2020

Structure, Governance & Management

Making Music’s governing documents are its Memorandum and Articles of Association. As well as being a registered charity in England and Wales, Making Music is a registered charity in Scotland and is a company limited by guarantee.

Making Music’s Board of Directors is made up of 9 trustees elected by and from the membership and up to 3 trustees co-opted by the Board of Directors. The Chair, Vice Chair and Honorary Treasurer are elected by the Board from among their number and can serve in their role for up to two terms of three years each. Co-opted trustees can serve up to two terms of three years each.

Every year, a third of elected trustees retire. Retiring trustees can put themselves forward again for election for a maximum three terms of three years each. A call is put out to members for nominations and when there are more nominations than vacancies, an election is held (this is usually the case), with the result announced at the Annual General Meeting.

When a new trustee is appointed or co-opted, they receive a full day induction from the Chief Executive and Chair, including on procedures, policies, strategy, and have an opportunity to meet all the staff of the charity.

Organisation

Overall responsibility for the Charity’s strategy and direction rests with the Board of Trustees, which comprises all Directors. The carrying out of day-to-day activities is delegated to the staff under the management of the Chief Executive and Senior Management Team.

A remuneration committee of the Board sets the pay structure for all staff. If applicable, any annual percentage increase is applied consistently to all staff.

Subsidiaries

The charity has a trading subsidiary, NFMS Enterprises Ltd, whose accounts are reported separately, and are consolidated into these accounts.

Weymouth Ukuleleans

The choir with no name

24

National Federation of Music Societies Annual Report For the year ended 31 December 2020

Statement of Directors’ Responsibilities

The Directors are responsible for preparing the Annual Report and accounts in accordance with applicable law and regulations.

The Trustees are the company’s Directors. Company law requires the Directors to prepare accounts for each financial year. Under that law they have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the Directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these accounts, the Directors are required to:

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions, disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the accounts comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.

In accordance with company law, the trustees, as the company’s Directors, certify that:

This report was approved by the Board on 9 August 2021.

By order of the Board

Dorothy Wilson MBE FRSA Chair

25

National Federation of Music Societies Independent Auditor’s Report to the Trustees For the year ended 31 December 2020

Opinion

We have audited the financial statements of National Federation of Music Societies (“the parent charitable company”) and its subsidiary (together “the group” for the year ended 31 December 2020, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Charity Balance Sheet, Consolidated Statement of Cash Flows, and the 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company 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 evidence we have obtained 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 going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Parent Charitable Company'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 concern are described in the relevant sections of this report.

26

National Federation of Music Societies Independent Auditor’s Report to the Trustees For the year ended 31 December 2020

Other information

The other information comprises the information included in the trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information.

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 audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:

27

National Federation of Music Societies Independent Auditor’s Report to the Trustees For the year ended 31 December 2020

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 15, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

28

National Federation of Music Societies Independent Auditor’s Report to the Trustees For the year ended 31 December 2020

A further description of our responsibilities for the audit of the financial statements is located

on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities.

This description forms part of our auditor’s report.

Use of our report

This report is made solely to the parent charitable company’s members, as a body, in accordance with Chapter 3 of part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the parent charitable company’s members and 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 parent charitable company, the parent charitable company’s members as a body and the parent charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

A S Healey FCA CTA DChA (Senior Statutory Auditor)

For and on behalf of:

Lindeyer Francis Ferguson Limited

Statutory Auditor Chartered Accountants North House 198 High Street Tonbridge Kent TN9 1BE

Date: 11 August 2021

29

THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2020

2020
Note
£
Income from:
Donations and legacies
3
6,419
Charitable activities
4
565,025
Other trading activities
5
46,183
Interest and dividends
2,158
Total
619,785
Expenditure on:
Raising funds
6
12,761
Charitable activities
7
613,077
Total
625,838
Net gains/(losses) on
investments
12
-
Net income/(expenditure)
8
( 6,053)
Transfers between funds
-
Net movement in funds
( 6,053)
Reconciliation of funds:
Total funds brought forward
363,729
Total funds carried forward
15
357,676
Unrestricted
funds		 2020
2020
Restricted
funds
£
£
134,463
-
-
-
-
-
5,155
-
139,618
-
-
-
140,675
-
140,675
-
-
( 17,141)
( 1,057)
( 17,141)
-
-
( 1,057)
( 17,141)
178,810
329,720
177,753
312,579
Endowment
funds		 2020
Total
funds
£
140,882
565,025
46,183
7,313
759,403
12,761
753,752
766,513
( 17,141)
( 24,251)
-
( 24,251)
872,259
848,008		 2019
Total
funds
£
121,970
531,798
64,531
11,750
730,049
9,323
720,282
729,605
12,381
12,825
-
12,825
859,434
872,259

30

THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2020

Note
Fixed assets
Intangible assets
10
Tangible assets
11
Investments
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors:amounts falling due
within one year
14
Net current assets
Total net assets
The funds of the charity:
Endowment funds
Restricted funds
Unrestricted funds
15		 2020
£
115,443
1,403,755
1,519,198
( 833,993)		 2020
£
-
40,223
122,580
162,803
685,205
848,008
312,579
177,753
357,676
848,008		 2019
£
79,891
1,628,659
1,708,550
( 1,022,285)		 2019
£
Restated
-
46,273
139,721
185,994
686,265
872,259
329,720
178,810
363,729
872,259

The financial statements were approved by the Board of Trustees on 9 August 2021 and were signed on its behalf by:

Dorothy Wilson MBE FRSA Trustee

Clare Birks Trustee

31

THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC

CHARITY BALANCE SHEET AS AT 31 DECEMBER 2020

Note
Fixed assets
Intangible assets
10
Tangible assets
11
Investments
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors:amounts falling due
within one year
14
Net current assets
Total net assets
The funds of the charity:
Endowment funds
Restricted funds
Unrestricted funds
15		 2020
£
149,324
1,365,570
1,514,894
( 829,693)		 2020
£
-
40,223
122,584
162,807
685,201
848,008
312,579
177,753
357,676
848,008		 2019
£
94,412
1,609,800
1,704,212
( 1,017,951)		 2019
£
Restated
-
46,273
139,725
185,998
686,261
872,259
329,720
178,810
363,729
872,259

The financial statements were approved by the Board of Trustees on 9 August 2021 and were signed on its behalf by:

Dorothy Wilson MBE FRSA Clare Birks Trustee Trustee

32

THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Cash flows from operating activities:
Net cash (used in) / provided by operating activities
A
Cash flows from investing activities:
Dividends and interest from investments
Purchase of tangible fixed assets
Net cash (used in) / provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
A. Reconciliation of net income / (expenditure) to net cash flow from
operating activities
Net income/(expenditure) for the year
Depreciation and amortisation charges
(Gains)/losses on investments
Dividends and interest from investments
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash (used in) / provided by operating activities		 2020
£
( 222,248)
7,313
( 9,969)
( 2,656)
( 224,904)
1,628,659
1,403,755
( 24,251)
16,019
17,141
( 7,313)
( 35,552)
( 188,292)
( 222,248)		 2019
£
( 4,613)
11,750
( 19,299)
( 7,549)
( 12,162)
1,640,821
1,628,659
12,825
12,520
( 12,381)
( 11,750)
( 44,866)
39,039
( 4,613)

33

THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Making Music meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

There are no material uncertainties about the charity's ability to continue, and so the going concern basis of accounting has been adopted.

The financial statements are presented in pounds sterling and rounded to the nearest pound.

Basis of consolidation

The consolidated financial statements incorporate those of Making Music and its wholly owned subsidiary undertaking, NFMS Enterprises Limited. All intra-group transactions and balances are eliminated on consolidation.

Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Income

Income from donations and grants is recognised when the charity is entitled to the funds, the receipt is probable and the amount can be measured reliably. For donations, this is usually on receipt. For grants, this is usually when a formal offer is made in writing, unless the grant contains terms and conditions outside of the charity's control which must be met before the charity is entitled to the funds. Where grants are received in response to a proposal including a budgeted timescale, such that the timescale for the expenditure is implicit in the grant agreement, the income is recognised in accordance with that timescale.

Income from legacies is recognised when there has been a grant of probate, the executors have established that there are sufficient assets in the estate to pay the legacy, and any conditions attached are within the control of the charity or have already been met.

Income from charitable activities is recognised over the period to which the income relates. Membership subscriptions are recognised on a straight line basis over the term of the subscription.

Gifts in kind are only included in the financial statements when the charity is entitled to them, when it is probable that the charity will receive the economic benefits, and when the fair value or value to the charity, as appropriate, can be measured with sufficient reliability.

Investment income is recognised when receivable. Interest is accounted for as accrued income where is it due but has not yet been credited.

34

THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 ACCOUNTING POLICIES continued

Expenditure

Expenditure is recognised when a present legal or constructive obligation exists at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation, and the amount can be estimated reliably.

Grants payable are recognised when a commitment has been communicated to the beneficiary.

Staff costs have been allocated to expenditure headings on the basis of an estimate of the amount of time spent by staff members in each area.

Support costs have been allocated to charitable activities on the basis of direct staff costs.

Support costs are those functions that assist the work of the charity but do not directly relate to the charitable activities, and include governance costs.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for the particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

The permanent endowment fund relates to a legacy from Philip & Dorothy Green for young musicians. The net income is transferred to a separate restricted fund.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated realisable value of each asset over its expected useful life, as follows:

Fixtures, fittings and equipment 7-33% on the reducing balance basis Computers and website 33% on the straight line basis Piano 8% on the straight line basis

Assets costing less than £500 are not capitalised but are recognised as expenditure in the Statement of Financial Activities in the year incurred.

Intangible fixed assets and amortisation

Intangible fixed assets are stated at cost less amortisation, and amortisation is charged over 20 years on the straight line basis.

Investments

Listed investments are stated at fair value. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading "Net gains/(losses) on investments" in the Statement of Financial Activities.

Investments in subsidiary undertakings are stated at the lower of cost and net realisable value.

Financial instruments

Other than listed investments, the charity only has financial instruments of a kind that qualify as basic financial instruments. Short term basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

35

THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 ACCOUNTING POLICIES continued

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period to which the entitlement relates.

Payments to defined contribution pension schemes are charged as an expense as they fall due.

Leasing

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Prior period restatement

A prior period adjustment has been made to reflect legal advice received on the nature of the endowment fund. Previously, this was disclosed as expendable but legal advice concluded that the fund is permanent endowment.

The value of the permanent endowment fund at 1 January 2020 has been restated to reflect the original capital endowment plus net investment gains and to transfer net income accrued historically to the endowment fund to restricted funds. The impact is to reduce the value of the endowment fund and increase the value of the Philip and Dorothy Green restricted income fund by £73,650. This change has not affected total net assets.

2 STATUS

Making Music is a charitable company limited by guarantee incorporated in England and Wales. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is 8 Holyrood Street, London SE1 2EL.

3 INCOME FROM DONATIONS AND LEGACIES

Donations
Grants		 2020
£
42,451
98,431
140,882		 2019
£
27,795
94,175
121,970

In the preceding period, donation income of £116,422 and total income of £124,504 was restricted.

In addition to the donations above, Making Music received various gifts in kind towards Make Music Day 2020, including musical arrangements and event and marketing support from Music for All, Team London Bridge, Hal Leonard Europe and other partner organisations. In future years, systems will be implemented to measure the value of these gifts with sufficient reliability for inclusion in the financial statements.

36

THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

4 INCOME FROM CHARITABLE ACTIVITIES

2020
£
Membership subscriptions
500,099
Member services
63,911
Other services
-
564,010
INCOME FROM OTHER TRADING ACTIVITIES
Advertising
Sponsorship
Piano hire
Rental income
Other income
EXPENDITURE ON RAISING FUNDS
Staff costs
Advertising agent commission
Other fundraising costs
Supporting
members		 2020
£
-
-
1,015
1,015
Supporting
leisure-time
music		 2020
Total
£
500,099
63,911
1,015
565,025
2020
£
27,564
-
250
17,760
609
46,183
2020
£
5,156
7,565
40
12,761		 2019
Total
£
495,093
35,319
1,386
531,798
2019
£
32,113
12,000
1,935
17,787
696
64,531
2019
£
-
9,323
-
9,323

5 INCOME FROM OTHER TRADING ACTIVITIES

6 EXPENDITURE ON RAISING FUNDS

37

THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

7
EXPENDITURE ON CHARITABLE ACTIVITIES
2020
2020
£
£
Staff costs
302,993
56,562
Direct costs
59,124
61,637
Publication costs
22,127
-
Selected Artists Panel costs and subsidies
6,257
-
Event costs
3,027
-
Grants payable
6,500
-
Support costs allocated
198,474
37,051
598,502
155,250
Support costs comprise:
Support staff costs
Other staff costs
Marketing
Premises and office costs
Depreciation
Legal and accountancy fees
Other costs
Governance costs:
Trustee expenses
Audit fees
In the preceding period, £164,824 of expenditure came from restricted funds.
Supporting
leisure-time
music
Supporting
members		 2020
Total
£
359,555
120,761
22,127
6,257
3,027
6,500
235,525
753,752
83,070
14,446
16,592
83,207
16,019
6,144
8,277
1,470
6,300
235,525		 2019
Total
£
315,499
120,832
22,672
9,872
8,580
12,100
230,727
720,282
82,670
3,418
17,483
82,935
12,520
7,626
14,112
3,963
6,000
230,727

8 NET INCOME/(EXPENDITURE)

NET INCOME/(EXPENDITURE)
2020 2019
£ £
Net income/(expenditure) is stated after charging/(crediting):
Depreciation 16,019 12,520
Auditors' remuneration for audit services 6,300 6,000
Auditors' remuneration for non-audit services 2,566 8,010
Operating lease rentals 38,326 37,286

As permitted by s408 Companies Act 2006, the parent charity has not presented its own Statement of Financial Activities and related notes. The parent charity's net income/(expenditure) for the year was (£15,428) (2019: £12,825).

38

THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

9 STAFF COSTS

STAFF COSTS
Gross salaries
Employer's National Insurance contributions
Employer's pension contributions
Agency staff		 2020
£
394,595
31,572
11,733
9,881
447,781		 2019
£
367,923
18,940
9,101
2,205
398,169

No termination payments were paid during the period (2019: one of £20,346).

Employer's National Insurance contributions for 2019 were reduced by £14,000, representing a backdated claim for Employment Allowance.

There were no employees with employment benefits (excluding employer pension contributions) of more than £60,000 in the current nor preceding period.

At the balance sheet date pension contributions unpaid amounted to £14 (2019: £222).

The average number of full-time equivalent employees during the year was 12 (2019: 11).

10 INTANGIBLE FIXED ASSETS

INTANGIBLE FIXED ASSETS
Group and charity
Cost brought forward and carried forward
Amortisation brought forward and carried forward
Net book value at 31 December 2019 and 2020		 £
1,500
1,500
-

39

THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

11 TANGIBLE FIXED ASSETS

Group and charity
Cost
Brought forward at 1 January 2020
Additions
Carried forward at 31 December 2020
Depreciation
Brought forward at 1 January 2020
Charged for the year
Carried forward at 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019
12
INVESTMENTS
Group
Listed investments
Fair value at 1 January 2020
Unrealised gains and losses
Realised gains and losses
Per Statement of Financial Activities		 £
£
21,094
116,290
-
9,969
21,094
126,259
13,115
92,996
798
14,021
13,913
107,017
7,181
19,242
7,979
23,294
Fixtures,
fittings and
equipment
Computers and
website		 Piano
£
15,000
-
15,000
-
1,200
1,200
13,800
15,000
2020
£
139,721
( 17,141)
122,580
-
( 17,141)		 Total
£
152,384
9,969
162,353
106,111
16,019
122,130
40,223
46,273
2019
£
127,340
12,381
139,721
-
12,381

In addition, the charity has an investment of £4 (2019: £4), being a holding of 100% of the ordinary share capital, in NFMS Enterprises Limited (company number 02844532, its trading subsidiary. NFMS Enterprises Limited is a company registered in England and Wales with number 02844532. All of its profits are convenanted to the parent charity.

The subsidiary contributed turnover of £50,624 (2019: £38,772), expenditure of £42,306 (2019: £27,683) and a profit to the charity of £8,318 (2019: £11,089). At the balance sheet date, the subsidiary had net assets of £4 (2019: £4).

40

THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

13 DEBTORS

DEBTORS
Trade debtors
Amounts owed by group undertakings
Prepayments and accrued income
Other debtors		 Group
2020
£
59,963
-
30,423
25,057
115,443		 Group
2019
£
37,405
-
42,486
-
79,891		 Charity
2020
£
53,799
49,238
28,945
17,342
149,324		 Charity
2019
£
31,606
2,200
60,606
-
94,412

14 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade and other creditors
Deferred subscription income
Accruals and other deferred income
Tax and social security		 Group
2020
£
399,290
405,777
28,926
-
833,993		 Group
2019
£
443,468
438,072
23,104
117,641
1,022,285		 Charity
2020
£
399,212
405,777
24,704
-
829,693		 Charity
2019
£
443,468
438,072
23,104
113,307
1,017,951

Included in trade and other creditors are insurance premiums of £336,111 (2019: £324,946) which are held by Making Music as agent on behalf of the insurer. The charity received contributions from members during the year amounting to £429,517 (2019: £437,786) and remitted payments to the insurer amounting to £418,352 (2019: £407,377). Also included are PRS contributions of £44,272 (2019: £98,314) collected from members to be remitted to PRS after the year end.

The movement on deferred membership subscriptions is as follows:

Group and charity
Balance at 1 January 2020
Released to income
Received in the year and deferred
Balance at 31 December 2020		 2020
£
438,072
( 438,072)
405,777
405,777		 2019
£
416,471
( 416,471)
438,072
438,072

41

THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

15 MOVEMENT ON FUNDS

CURRENT YEAR
Permanent endowment
Philip and Dorothy Green endowment fund
Restricted funds
Philip and Dorothy Green income fund
Adopt a Music Creator
P A Thompson fund
P & D Green Young Artists fund
Make Music Day
Other restricted funds
Unrestricted funds
Designated funds
General fund
Total funds
Current year net movement comprises:
Permanent endowment
Philip and Dorothy Green endowment fund
Restricted funds
Philip and Dorothy Green income fund
Adopt a Music Creator
P A Thompson fund
P & D Green Young Artists fund
Make Music Day
Other restricted funds
Unrestricted funds
Designated funds
General fund
Total funds		 Brought
forward
£
329,720
111,085
18,023
35,499
-
6,967
7,236
178,810
97,311
266,418
363,729
872,259
Income
£
-
41,187
25,000
-
-
65,853
7,578
139,618
-
619,785
619,785
759,403		 Net
movement
£
( 17,141)
41,187
145
( 23,399)
( 23,869)
8,238
( 3,359)
( 1,057)
( 3,809)
( 2,244)
( 6,053)
( 24,251)
£
-
-
( 24,855)
( 23,399)
( 23,869)
( 57,615)
( 10,937)
( 140,675)
( 3,809)
( 622,029)
( 625,838)
( 766,513)
Expenditure		 Transfers
£
-
( 27,290)
800
-
23,869
-
2,621
-
( 1,566)
1,566
-
-
Gains/
(losses)
£
( 17,141)
-
-
-
-
-
-
-
-
-
-
( 17,141)		 Carried forward
£
312,579
124,982
18,968
12,100
-
15,205
6,498
177,753
91,936
265,740
357,676
848,008
Net movement
£
( 17,141)
41,187
145
( 23,399)
( 23,869)
8,238
( 3,359)
( 1,057)
( 3,809)
( 2,244)
( 6,053)
( 24,251)

42

THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

15 MOVEMENT ON FUNDS continued

PRIOR YEAR
Permanent endowment
Philip and Dorothy Green endowment fund
Restricted funds
Philip and Dorothy Green income fund
Adopt a Music Creator
P A Thompson fund
P & D Green Young Artists fund
Make Music Day
Other restricted funds
Unrestricted funds
Designated funds
General fund
Total funds
Prior year net movement comprises:
Permanent endowment
Philip and Dorothy Green endowment fund
Restricted funds
Philip and Dorothy Green income fund
Adopt a Music Creator
P A Thompson fund
P & D Green Young Artists fund
Make Music Day
Other restricted funds
Unrestricted funds
Designated funds
General fund
Total funds		 Brought
forward
£
317,339
109,330
35,078
61,050
1,470
10,263
1,939
219,130
87,096
235,869
322,965
859,434
Income
£
-
30,329
25,000
-
63,226
5,949
124,504
-
605,545
605,545
730,049		 Net
movement
£
12,381
30,329
( 17,055)
( 25,551)
( 29,347)
( 3,296)
4,600
( 40,320)
( 13,115)
53,879
40,764
12,825
£
-
-
( 42,055)
( 25,551)
( 29,347)
( 66,522)
( 1,349)
( 164,824)
( 13,115)
( 551,666)
( 564,781)
( 729,605)
Expenditure		 Transfers
£
-
( 28,574)
-
-
27,877
-
697
-
23,330
( 23,330)
-
-
Gains/
(losses)
£
12,381
-
-
-
-
-
-
-
-
12,381		 Carried forward
£
329,720
111,085
18,023
35,499
-
6,967
7,236
178,810
97,311
266,418
363,729
872,259
Net movement
£
12,381
30,329
( 17,055)
( 25,551)
( 29,347)
( 3,296)
4,600
( 40,320)
( 13,115)
53,879
40,764
12,825

43

THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

15 MOVEMENT ON FUNDS continued

Philip and Dorothy Green endowment and restricted funds

This endowment enables us to provide grants, awards, prizes, donations or financial sponsorship to young musicians. It funds the P & D Green Young Artists fund which enables young musicians at the start of their career to gain vital concert and recital experience across the UK. The scheme also allows Making Music member groups to tap into some of the very best young musical talent to programme into their concert. This endowment also part-funds the Adopt a Composer project, run annually by Making Music since 2000 and the Awards programme for composers and arrangers.

Historically, this endowment fund has been disclosed as an expendable fund. During the year, the trustees sought legal advice to confirm this status and the advice concluded that, on balance, the fund should be treated as permanent endowment.

The value of the permanent endowment fund at 1 January 2020 has been restated to reflect the original capital endowment plus net investment gains and to transfer net income accrued historically to the endowment fund to restricted funds. The impact is to reduce the value of the endowment fund and increase the value of the Philip and Dorothy Green restricted income fund by £73,650.

Adopt a Music Creator

This project enables us to pair a leisure-time ensemble with an emerging composer. It provides a unique opportunity for leisure-time musicians to work directly with a composer, be actively involved in the creative process and discover new music. The project is funded by the PRS for Music Foundation and the Philip and Dorothy Green fund. Separate funding for the project in Scotland is received from Creative Scotland.

P A Thompson fund

The objective of the Pauline Thompson legacy fund is to encourage young people aged 15 to 35 to join amateur music groups. It enables us to employ a part-time Youth Engagement Manager and to extend repertoire that will attract young people to sing/play in different types of mixed age music groups.

Make Music Day fund

This is a music sector wide UK project which is co-managed by us, funding from Arts Council England, NAMM, Musicians Union and Music For All is received and managed by Making Music on behalf of an industry-wide steering group. Make Music Day is an international celebration of grassroots musical activity always on 21 June, which started in France in 1982 and now takes place in 125 countries across the globe.

Other restricted funds

These funds enable us to make a number of awards, bursaries, and prizes to individual musicians, groups, and organisations in both the voluntary and professional sector. Some of these, such as the Sir Charles Groves Prizes, recognise lifelong contributions to the musical life of the UK.

Designated funds

The designated funds are intended for use on a new website and new services for members.

44

THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

16
ANALYSIS OF NET ASSETS BETWEEN FUNDS
Group
2020
CURRENT YEAR
£
Fixed assets
40,223
Net current assets
317,453
357,676
PRIOR YEAR
Fixed assets
46,273
Net current assets
317,456
363,729
Charity
2020
CURRENT YEAR
£
Fixed assets
40,223
Net current assets
317,453
357,676
PRIOR YEAR
Fixed assets
46,273
Net current assets
317,456
363,729
Unrestricted
funds
Unrestricted
funds		 2020
Restricted
funds
£
-
177,753
177,753
-
178,810
178,810
2020
Restricted
funds
£
-
177,753
177,753
-
178,810
178,810		 2020
£
122,580
189,999
312,579
139,721
189,999
329,720
2020
£
122,584
189,995
312,579
139,725
189,995
329,720
Endowment
funds
Endowment
funds		 2020
Total funds
£
162,803
685,205
848,008
185,994
686,265
872,259
2020
Total funds
£
162,807
685,201
848,008
185,998
686,261
872,259

17 FINANCIAL COMMITMENTS

At 31 December 2020 the charity was committed to future minimum lease payments under non-cancellable operating leases as follows:

leases as follows:
2020 2019
£ £
Due within one year 39,197 35,621
Due in two to five years 127,945 164,957

45

THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

18 RELATED PARTY TRANSACTIONS

The key management personnel are considered to be the trustees, the Chief Executive, the Membership & Operations Director, the Finance Director and the Communications Director.

There were no Trustees' remuneration or other benefits during the current or prior period.

Trustees were reimbursed expenses of £310 (2019: £2,813), in respect of two (2019: eight) trustees for travel and subsistence costs. Ms Clare Birks is related to the owner of the property leased by the charity. The amount of the lease charge payable per annum is £36,996 (2019: £33,996). Ms Birks is excluded from any discussions on propertyrelated matters, and the rent was negotiated on an arm's length basis.

The total amount of employee benefits (including employer's pension contributions) received by key management personnel during the year was £160,615 (2019: £180,478).

46