## **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 

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**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). 

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**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: 

- Providing _**practical and artistic resources**_ on everything from renegotiating contracts to online AGMs, digital technical how-tos, to inspiration for a choir on Zoom. 

- Helping groups and individuals _**navigate the Covid-19 regulations**_ landscape, and _**advocating for a safe return of activities**_ with civil servants and ministers in all four nations of the UK. 

- Mitigating group and individual isolation, by hosting regular Zoom meetings & events. 

- _**Celebrating and highlighting member groups**_ through a series of Virtual Concerts, a digital project for Make Music Day UK on 21 June and a new set of awards. 

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?_ 

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**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: 

- _**We still supported our members with practical and artistic resources**_ … but addressed different issues and encouraged digital skills and online musical excellence and development, rather than live in-person activity. 

- _**We stepped up our work connecting members to each other and the wider sector**_ running more events attended by more members, discovering we can reach a wider range of people; we will continue online (as well as in-person) meetings in future. 

- _**We were able to celebrate the work of leisure-time music groups more widely, via digital platforms**_ , creating in the process a collection of invaluable assets and stories which allow us to continue highlighting the value and variety of members’ work. 

- _**We developed closer links with existing and new partners and organisations in our sector,**_ due to issues around Covid and permitted activity, collaborating and coordinating on campaigns, communications and advocacy. 

## **Objectives and Activities** 

## **What does Making Music do?** 

- _**Support members:**_ practical services and artistic development opportunities; facilitate and build connections, to enable everyone and anyone to set up and run a leisure-time music group, and for groups to keep growing, find inspiration and aspire to excellence; celebrate and highlight our members’ achievements; and stand up for their needs with policy makers and other stakeholders. 

- _**Support leisure-time music:**_ stand up for and celebrate the leisure-time music sector (of which our members are part) to policy makers so that policy can take into account the individual and community benefits of participating in music as a hobby; and to the general public so that more new people are able to draw down such benefits and may be encouraged to join one of our member groups. 

## **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. 

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**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: 

- All individuals in society have the potential to benefit from the activities of Making Music, for example its publicly available search facility on the website (‘Find-AGroup’), and from the activities of its members, either by joining a leisure-time music group or experiencing their performances, workshops and other events. 

- Making Music’s advocacy work is of benefit to all, whether or not they are involved in music already, by seeking to maintain or establish an environment in which live music-making by and for everyone can flourish and be available to participants and audiences in communities across the UK. 

- In 2020, Making Music’s most popular online guidance tool, accessible to all, allowed music groups to understand what activity they were permitted to undertake at any given time in any of the four nations of the UK, with almost daily updates at times. 

- There are no restrictions on membership of Making Music, any leisure-time music group can become an Associate Member, although Full Membership is restricted to not-for-profit constituted groups. 

- Financial assistance with joining Making Music is considered in cases of individual hardship. Since 2015 Making Music has had a specially reduced rate (50% discount) for new groups just setting up and for those with an income below £1,000. 

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**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. 

- _**For individuals**_ , there is now a large and growing body of research which provides clear evidence of the social, educational, physical and mental health and well-being benefits of group music activity. 

- _**For society**_ , there is a developing evidence base to show that connectedness across socio-economic and cultural divides within communities through group activity brings many benefits to a local area, including making it a more desirable place to live and work, contributing to place-making and regeneration. Leisure-time music groups also raise millions of pounds annually for often local charities and community resources. 

- _**For the economy**_ , these groups collectively have a significant financial impact. Whilst small individually (73% have a turnover of below £14.5k a year), they are estimated to be around 13,500 in number across the UK, comprising around 750,000 participants. 98% of them engage professional musicians in some capacity (conductors, soloists, accompanists, etc.), with fees an estimated £86.4m a year; commissioning 2,000 new pieces of music annually; spending significantly with suppliers such as music publishers (£6.4m a year), retailers (instruments, accessories), on promotion, etc. 

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. 

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**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. 

- **191 DBS checks carried out (2019: 323)** 

- **34 people from 13 groups (2019: 17 people from 16) undertook specially developed online safeguarding training** 

- **312 page views of online safeguarding guidance** 

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+)** 

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**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. 

- **54 new online resources (2019: 17)** 

- **391,083 unique views of resources pages (2019: 210,885)** 

- **1.55m total website page views (2019: 1.09m)** 

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. 

- **7,030 received Highnotes (2019: 6,875)** 

- **11,587 on iNotes mailing list (2019: 11,719)** 

- **209 broadcast emails to 677,744 recipients (2019: 231 to 446,809)** 

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. 

- **Subsidies of £6,500 to 29 groups towards engaging Philip & Dorothy Green Young Artists, including 14 livestreamed recitals; (2019: £12,100 to 53 groups)** 

- **£600 for livestreaming recitals from other artists (2019: none)** 

- **£1,775 to 14 groups towards artists’ costs (2019: £3,475 to 31 groups)** 

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**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. 

- **Helped 11 groups register as charities (2019: 12)** 

- **15 new groups claim OTR (2019: 9)** 

- **54 successful OTR claims (2019: 24)** 

- **£149,280 tax relief claimed for members (2019: £58,394)** 

- **70 MM Platforms set up (2019: 29)** 

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. 

- **50,018 Find-a-Group pages viewed (2019: 65,224)** 

- **58,929 Vacancy pages viewed (2019: 91,030)** 

- **94,046 Events pages viewed total, including MM events (2019: 73,463)** 

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. 

- **6 additional composers ‘adopted’ by 7 groups (one collaboration between 2 groups) (2019: 6 by 6 groups)** 

- **No pieces premiered due to Covid-19 (2019: 6)** 

- **All premieres due in 2021** 

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

- **Masterclass for instrumental group conductors with English National Opera Music Director Martyn Brabbins, 10 attendees** 

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**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. 

- **18,777 artistic works listed (2019: 18,776)** 

- **13,682 items of sheet music available through member-to-member exchange (2019: 13,669)** 

- **5,693 programme notes available free (2019: 5,693)** 

- **10,932 Music Bank webpages viewed (2019: 23,007)** 

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**_ 

- **89 events, of which 74 online from March 2020, for 3,974 attendees (2019: 44 in person events for 770 attendees)** 

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



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**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. 

- **Looking at unique attendees, we engaged with 52% of our members through events in 2020 (2019: 13%).** 

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. 

- **6 meetings in 4 nations (2019: 7 in 4)** 

- **82 attendees (2019: 75)** 

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

- **3,146 full members (2019: 3,152)** 

- **311 associate members (2019: 324)** 

- **371 affiliate members (2019: 295)** 

- **TOTAL 3,828 (2019: 3,771)** 

This breaks down as supporting: 

- **2,113 singing groups - 55% of members (2019: 2,095; 55%)** 

- **1,293 instrumental groups - 34% of members (2019: 1,228; 33%)** 

- **448 promoters - 11% of members  (2019: 422; 12%)** 

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

- **< £7.2k: 50% (46%)** 

- **£7.2k-14.5k: 23% (24%)** 

- **14.5k-£21k: 10% (11%)** 

- **£21k-£31k: 7% (8%)** 

- **£31k-£100k 8% (9%)** 

- **£100k: 2% (2%)** 

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.** 

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



**----- Start of picture text -----**<br>
Supported by Making Music, groups upskilled<br>themselves and got online to stay in touch and make<br>music<br>92<br>68<br>56<br>31<br>26<br>18<br>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<br>% of groups with suspended activities % of groups meeting online<br>**----- End of picture text -----**<br>


## **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?** 

- Arts Council England, contributing to their Diversity in Classical Music reference group; and speaking at a Music Participation event. 

- Cultural Health & Wellbeing Alliance, Chiltern Music Therapy, and others working in the Arts & Health field and on Social Prescribing, a new referral scheme of potential interest to member groups. 

- ABRSM, Brass Bands England, British Association of Concert Halls, British and International Festivals Association, Ceoltmas Ulster, Culture Counts (Scotland), Family Arts Campaign, MD Brunch, Music Mark, Music Network UK, Royal National Mòd, Sing Ireland, Scottish Association of Music Educators, Scottish Brass Bands Association, Scottish Pipe Band Association, Scottish Wind Band Association, Traditional Music Forum, Ty Cerdd, Voluntary Arts, What Next? (England, Wales), Welsh Government Creative Wales Music Stakeholder Group, Workers Educational Association. 

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


- We developed our international contacts, due to the ease of connecting online: attending meetings of the European Orchestra Federation, the European Choral Association, Amateo, and hosting an international Make Music Day event, opening up opportunities for collaboration and exchange for our members. 

- We hosted speaker-led events for members on: 

   - Covid activity and community venues, with Voluntary Arts, Action for Communities in Rural England 

   - Public funding available, with Arts Council England, Arts Council of Wales, Arts Council of Northern Ireland, Creative Scotland 

   - Covid-19 and ventilation for buildings, with Alison McMillan of Wrexham Glyndywr University, Gary Griffiths (freelance music education consultant). 

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

   - Panels on Covid-19 and its impact on leisure-time music groups: for Association of British Choral Directors, Sound Connections, Voluntary Arts Creative Network, MD Brunch, Ty Cerdd 

   - Interview with Sam Evans of One Voice Campaign, on Covid-19 restrictions and music groups, viewed 50,000+ times on Facebook and Youtube 

   - Pre-lockdown: Music Education Expo 

   - Meeting of the All-Parliamentary Group on Music Education 

   - Scotland: Music Education Partnership Group; Scottish Parliament Cross-Party Group on Music. 

**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 

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**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. 

- The network met three times in 2020 to hear from experts, including Professor Martin Ashley, one of the first to research the impact of Covid on choirs 

- The network decided to take joint action and write to ministers in all the UK nations to raise awareness of the value of singing for the mental and physical well-being of millions of people. This resulted in government commissioned research into the transmission dangers presented by singing, and wind and brass instruments, ultimately contributing to an easing of restrictions 

- The network grew by 10%, due to high visibility and effective joint action 

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. 

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**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: 

- surveys by Arts Council England and the National Council for Voluntary Organisations 

- government enquiries, including ones on the **impact of Covid on protected characterists** by the Women and Equalities Committee, and on **the impact of Covid on Digital Culture Media and Sports sectors** by the DCMS Committee 

- enquiries in Wales by the Culture, Welsh Language, and Communications Committee into the COVID-19 outbreak and its impact on culture, creative industries, heritage, communications and sport; and into live music 

- via the Arts Collaboration Network contributed to the inquiry in Northern Ireland on **the impact of Covid-19 on the arts sector** 

- made the case in Scotland for leisure-time music to be taken into consideration as Covid-restrictions are eased, via Scottish Parliament Cross-Party Group on Music 

- responded in Scotland to the Culture, Tourism, Europe and External Affairs Committee Inquiry on the **Impact of COVID-19 on Scotland's Culture and Tourism Sectors** 

## **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 

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**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. 

- **3 editions of Highnotes (2019: 3)** 

- **16 editions of iNotes (2019: 12)** 

- **9 press releases (2019: 9)** 

- **10 Virtual Concerts (2019: none)** 

- **20,199 followers on Twitter (2019: 18,102)** 

- **2,035 on Instagram (2019: 1,273)** 

- **14,384 Facebook page likes (2019: 10,678)** 

- **20,488 views of Virtual Concerts on Youtube (new)** 

- **1,158 subscribers to Youtube channel (new)** 

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): 

- **13 hour continuous broadcast on Youtube, 277 events** 

- **1,739 individual performances by 11,162 performers** 

- **531,726 audiences reaching a total 1.4 million people** 

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. 

- **5 groups featured on Classic FM Drivetime in December 2020 (2019: 5)** 

- **6 groups featured on BBC Radio 3 as part of Adopt a Composer project in Jan 2020 (2019: 6)** 

***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. 

- **Lady Hilary Groves: Vilma Weaver of the Ashira Singers** 

- **Best Music Creator: Aleksandar Kostic, for Eclectic Voices** 

- **Best Arranger: George Morton, for Sheffield Philharmonic Orchestra** 

- **Best Project with New Music: Kirkcaldy Orchestral Society’s School Composition Project** 

- **Best Photo capturing the spirit of a group: Streetwise Opera** 

- **Best Virtual Concert contribution: Blackpool Symphony Orchestra’s arrangement and performance of Somewhere Over The Rainbow** 

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** 

- The business plan, our vision, mission and objectives, are now our guiding principles until the end of 2022 

- We will focus resources, meetings and support on helping our members navigate the post-Covid-19 world as effectively and rapidly as possible 

- We will encourage take-up of MM Platform to enable groups to run themselves efficiently and ready themselves for recruiting new players and singers post-Covid 

- We will continue to support groups to claim Orchestra Tax Relief, and lobby for an extension to enable claims by choirs 

- We will consult on and commission a new website, to be delivered in 2022 

- We will further disseminate our Adult Music Learning manifesto, and work on dismantling the barriers to adult music making 

- We will introduce two further new awards: best musical director and ‘group hero of the year’ 

18 



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


- We will be launching an app, in collaboration with the Association of British Choral Directors, to allow music groups to report on infections following in-person meetings and rehearsals, to gather empirical evidence for submission to policymakers 

- We will focus on recruiting more music groups into membership to strengthen our voice 

- We will continue to celebrate and stand up for our members and the leisure-time music sector as necessary, to enable it to flourish and be recognised for its considerable contribution to the civic life and wellbeing of the UK 

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



22 



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


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

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles of the Charities SORP; 

- make judgements and estimates that are reasonable and prudent;  and 

- prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business. 

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: 

- so far as we are aware, there is no relevant audit information of which the company’s auditors are unaware; and 

- each director has taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information. 

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: 

- give a true and fair view of the state of the  group’s and the parent charitable company’s affairs as at 31 December 2020 and of the group’s incoming resources and application of resources for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 

- have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006. 

## **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: 

- the information given in the trustees’ report, which includes the directors’ report for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the directors’ report included within the trustees’ report has been prepared in accordance with applicable legal requirements. 

## **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: 

- adequate and proper accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or 

- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit; or 

27 



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


- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report. 

## **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. 

- We obtained an understanding of the legal and regulatory framework applying to the Trust, and the procedures that management adopt to ensure compliance, including those relating to the Charities SORP FRS 102; 

- We assessed the susceptibility of the Parent Charitable Company’s financial statement to material misstatement, including considering how fraud might occur; 

- We obtained the Board of Trustee’s assessment of fraud risk and enquired as to any known or suspected instances of fraud; and 

28 



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


- We designed and performed audit procedures to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations, including enquiry of the Board of Trustees, review of minutes and correspondence, and review of the completeness and accuracy of disclosures made in the financial statements. 

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_**<br>**Note**<br>**_£_**<br>**Income from:**<br>Donations and legacies<br>**3**<br>6,419<br>Charitable activities<br>**4**<br>565,025<br>Other trading activities<br>**5**<br>46,183<br>Interest and dividends<br>2,158<br>Total<br>619,785<br>**Expenditure on:**<br>Raising funds<br>**6**<br>12,761<br>Charitable activities<br>**7**<br>613,077<br>Total<br>625,838<br>Net gains/(losses) on<br>investments<br>**12**<br>-<br>**Net income/(expenditure)**<br>**8**<br>( 6,053)<br>Transfers between funds<br>-<br>**Net movement in funds**<br>( 6,053)<br>**Reconciliation of funds:**<br>Total funds brought forward<br>363,729<br>Total funds carried forward<br>**15**<br>357,676<br>**_Unrestricted_**<br>**_funds_**|**_2020_**<br>**_2020_**<br>**_Restricted_**<br>**_funds_**<br>**_£_**<br>**_£_**<br>134,463<br>-<br>-<br>-<br>-<br>-<br>5,155<br>-<br>139,618<br>-<br>-<br>-<br>140,675<br>-<br>140,675<br>-<br>-<br>( 17,141)<br>( 1,057)<br>( 17,141)<br>-<br>-<br>( 1,057)<br>( 17,141)<br>178,810<br>329,720<br>177,753<br>312,579<br>**_Endowment_**<br>**_funds_**|**_2020_**<br>**_Total_**<br>**_funds_**<br>**_£_**<br>140,882<br>565,025<br>46,183<br>7,313<br>759,403<br>12,761<br>753,752<br>766,513<br>( 17,141)<br>( 24,251)<br>-<br>( 24,251)<br>872,259<br>848,008|**_2019_**<br>**_Total_**<br>**_funds_**<br>**_£_**<br>121,970<br>531,798<br>64,531<br>11,750|
|---|---|---|---|
||||730,049|
||||9,323<br>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**<br>**Fixed assets**<br>Intangible assets<br>**10**<br>Tangible assets<br>**11**<br>Investments<br>**12**<br>**Current assets**<br>Debtors<br>**13**<br>Cash at bank and in hand<br>**Creditors:**amounts falling due<br>within one year<br>**14**<br>Net current assets<br>**Total net assets**<br>**The funds of the charity:**<br>Endowment funds<br>Restricted funds<br>Unrestricted funds<br>**15**|**_2020_**<br>**_£_**<br>115,443<br>1,403,755<br>1,519,198<br>( 833,993)|**_2020_**<br>**_£_**<br>-<br>40,223<br>122,580<br>162,803<br>685,205<br>848,008<br>312,579<br>177,753<br>357,676<br>848,008|**_2019_**<br>**_£_**<br>79,891<br>1,628,659<br>1,708,550<br>( 1,022,285)|**_2019_**<br>**_£_**<br>**_Restated_**<br>-<br>46,273<br>139,721|
|---|---|---|---|---|
|||||185,994<br>686,265|
|||||872,259|
|||||329,720<br>178,810<br>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**<br>**Fixed assets**<br>Intangible assets<br>**10**<br>Tangible assets<br>**11**<br>Investments<br>**12**<br>**Current assets**<br>Debtors<br>**13**<br>Cash at bank and in hand<br>**Creditors:**amounts falling due<br>within one year<br>**14**<br>Net current assets<br>**Total net assets**<br>**The funds of the charity:**<br>Endowment funds<br>Restricted funds<br>Unrestricted funds<br>**15**|**_2020_**<br>**_£_**<br>149,324<br>1,365,570<br>1,514,894<br>( 829,693)|**_2020_**<br>**_£_**<br>-<br>40,223<br>122,584<br>162,807<br>685,201<br>848,008<br>312,579<br>177,753<br>357,676<br>848,008|**_2019_**<br>**_£_**<br>94,412<br>1,609,800<br>1,704,212<br>( 1,017,951)|**_2019_**<br>**_£_**<br>**_Restated_**<br>-<br>46,273<br>139,725|
|---|---|---|---|---|
|||||185,998<br>686,261|
|||||872,259|
|||||329,720<br>178,810<br>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**<br>**Cash flows from operating activities:**<br>Net cash (used in) / provided by operating activities<br>**A**<br>**Cash flows from investing activities:**<br>Dividends and interest from investments<br>Purchase of tangible fixed assets<br>Net cash (used in) / provided by investing activities<br>**Change in cash and cash equivalents in the year**<br>Cash and cash equivalents at the beginning of the year<br>**Cash and cash equivalents at the end of the year**<br>**A. Reconciliation of net income / (expenditure) to net cash flow from**<br>**operating activities**<br>Net income/(expenditure) for the year<br>Depreciation and amortisation charges<br>(Gains)/losses on investments<br>Dividends and interest from investments<br>(Increase)/decrease in debtors<br>Increase/(decrease) in creditors<br>Net cash (used in) / provided by operating activities|**_2020_**<br>**_£_**<br>( 222,248)<br>7,313<br>( 9,969)<br>( 2,656)<br>( 224,904)<br>1,628,659<br>1,403,755<br>( 24,251)<br>16,019<br>17,141<br>( 7,313)<br>( 35,552)<br>( 188,292)<br>( 222,248)|**_2019_**<br>**_£_**<br>( 4,613)<br>11,750<br>( 19,299)|
|---|---|---|
|||( 7,549)<br>( 12,162)<br>1,640,821|
|||1,628,659|
|||12,825<br>12,520<br>( 12,381)<br>( 11,750)<br>( 44,866)<br>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<br>Grants|**_2020_**<br>**_£_**<br>42,451<br>98,431<br>140,882|**_2019_**<br>**_£_**<br>27,795<br>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_**<br>**_£_**<br>Membership subscriptions<br>500,099<br>Member services<br>63,911<br>Other services<br>-<br>564,010<br>**INCOME FROM OTHER TRADING ACTIVITIES**<br>Advertising<br>Sponsorship<br>Piano hire<br>Rental income<br>Other income<br>**EXPENDITURE ON RAISING FUNDS**<br>Staff costs<br>Advertising agent commission<br>Other fundraising costs<br>**_Supporting_**<br>**_members_**|**_2020_**<br>**_£_**<br>-<br>-<br>1,015<br>1,015<br>**_Supporting_**<br>**_leisure-time_**<br>**_music_**|**_2020_**<br>**_Total_**<br>**_£_**<br>500,099<br>63,911<br>1,015<br>565,025<br>**_2020_**<br>**_£_**<br>27,564<br>-<br>250<br>17,760<br>609<br>46,183<br>**_2020_**<br>**_£_**<br>5,156<br>7,565<br>40<br>12,761|**_2019_**<br>**_Total_**<br>**_£_**<br>495,093<br>35,319<br>1,386|
|---|---|---|---|
||||531,798|
||||**_2019_**<br>**_£_**<br>32,113<br>12,000<br>1,935<br>17,787<br>696|
||||64,531|
||||**_2019_**<br>**_£_**<br>-<br>9,323<br>-|
||||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**<br>**EXPENDITURE ON CHARITABLE ACTIVITIES**<br>**_2020_**<br>**_2020_**<br>**_£_**<br>**_£_**<br>Staff costs<br>302,993<br>56,562<br>Direct costs<br>59,124<br>61,637<br>Publication costs<br>22,127<br>-<br>Selected Artists Panel costs and subsidies<br>6,257<br>-<br>Event costs<br>3,027<br>-<br>Grants payable<br>6,500<br>-<br>Support costs allocated<br>198,474<br>37,051<br>598,502<br>155,250<br>Support costs comprise:<br>Support staff costs<br>Other staff costs<br>Marketing<br>Premises and office costs<br>Depreciation<br>Legal and accountancy fees<br>Other costs<br>Governance costs:<br>Trustee expenses<br>Audit fees<br>In the preceding period, £164,824 of expenditure came from restricted funds.<br>**_Supporting_**<br>**_leisure-time_**<br>**_music_**<br>**_Supporting_**<br>**_members_**|**_2020_**<br>**_Total_**<br>**_£_**<br>359,555<br>120,761<br>22,127<br>6,257<br>3,027<br>6,500<br>235,525<br>753,752<br>83,070<br>14,446<br>16,592<br>83,207<br>16,019<br>6,144<br>8,277<br>1,470<br>6,300<br>235,525|**_2019_**<br>**_Total_**<br>**_£_**<br>315,499<br>120,832<br>22,672<br>9,872<br>8,580<br>12,100<br>230,727|
|---|---|---|
|||720,282|
|||82,670<br>3,418<br>17,483<br>82,935<br>12,520<br>7,626<br>14,112<br>3,963<br>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<br>Employer's National Insurance contributions<br>Employer's pension contributions<br>Agency staff|**_2020_**<br>**_£_**<br>394,595<br>31,572<br>11,733<br>9,881<br>447,781|**_2019_**<br>**_£_**<br>367,923<br>18,940<br>9,101<br>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**<br>Cost brought forward and carried forward<br>Amortisation brought forward and carried forward<br>Net book value at 31 December 2019 and 2020|**_£_**<br>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**<br>**Cost**<br>Brought forward at 1 January 2020<br>Additions<br>Carried forward at 31 December 2020<br>**Depreciation**<br>Brought forward at 1 January 2020<br>Charged for the year<br>Carried forward at 31 December 2020<br>**Net book value**<br>At 31 December 2020<br>At 31 December 2019<br>**12**<br>**INVESTMENTS**<br>**Group**<br>**Listed investments**<br>Fair value at 1 January 2020<br>Unrealised gains and losses<br>Realised gains and losses<br>Per Statement of Financial Activities|**_£_**<br>**_£_**<br>21,094<br>116,290<br>-<br>9,969<br>21,094<br>126,259<br>13,115<br>92,996<br>798<br>14,021<br>13,913<br>107,017<br>7,181<br>19,242<br>7,979<br>23,294<br>**_Fixtures,_**<br>**_fittings and_**<br>**_equipment_**<br>**_Computers and_**<br>**_website_**|**_Piano_**<br>**_£_**<br>15,000<br>-<br>15,000<br>-<br>1,200<br>1,200<br>13,800<br>15,000<br>**_2020_**<br>**_£_**<br>139,721<br>( 17,141)<br>122,580<br>-<br>( 17,141)|**_Total_**<br>**_£_**<br>152,384<br>9,969|
|---|---|---|---|
||||162,353|
||||106,111<br>16,019|
||||122,130|
||||40,223|
||||46,273|
||||**_2019_**<br>**_£_**<br>127,340<br>12,381|
||||139,721|
||||-<br>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<br>Amounts owed by group undertakings<br>Prepayments and accrued income<br>Other debtors|**_Group_**<br>**_2020_**<br>**_£_**<br>59,963<br>-<br>30,423<br>25,057<br>115,443|**_Group_**<br>**_2019_**<br>**_£_**<br>37,405<br>-<br>42,486<br>-<br>79,891|**_Charity_**<br>**_2020_**<br>**_£_**<br>53,799<br>49,238<br>28,945<br>17,342<br>149,324|**_Charity_**<br>**_2019_**<br>**_£_**<br>31,606<br>2,200<br>60,606<br>-|
|||||94,412|



## **14 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|Trade and other creditors<br>Deferred subscription income<br>Accruals and other deferred income<br>Tax and social security|**_Group_**<br>**_2020_**<br>**_£_**<br>399,290<br>405,777<br>28,926<br>-<br>833,993|**_Group_**<br>**_2019_**<br>**_£_**<br>443,468<br>438,072<br>23,104<br>117,641<br>1,022,285|**_Charity_**<br>**_2020_**<br>**_£_**<br>399,212<br>405,777<br>24,704<br>-<br>829,693|**_Charity_**<br>**_2019_**<br>**_£_**<br>443,468<br>438,072<br>23,104<br>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**<br>Balance at 1 January 2020<br>Released to income<br>Received in the year and deferred<br>Balance at 31 December 2020|**_2020_**<br>**_£_**<br>438,072<br>( 438,072)<br>405,777<br>405,777|**_2019_**<br>**_£_**<br>416,471<br>( 416,471)<br>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**<br>**Permanent endowment**<br>Philip and Dorothy Green endowment fund<br>**Restricted funds**<br>Philip and Dorothy Green income fund<br>Adopt a Music Creator<br>P A Thompson fund<br>P & D Green Young Artists fund<br>Make Music Day<br>Other restricted funds<br>**Unrestricted funds**<br>Designated funds<br>General fund<br>Total funds<br>**_Current year net movement comprises:_**<br>**Permanent endowment**<br>Philip and Dorothy Green endowment fund<br>**Restricted funds**<br>Philip and Dorothy Green income fund<br>Adopt a Music Creator<br>P A Thompson fund<br>P & D Green Young Artists fund<br>Make Music Day<br>Other restricted funds<br>**Unrestricted funds**<br>Designated funds<br>General fund<br>Total funds|**_Brought_**<br>**_forward_**<br>**_£_**<br>329,720<br>111,085<br>18,023<br>35,499<br>-<br>6,967<br>7,236<br>178,810<br>97,311<br>266,418<br>363,729<br>872,259<br>**_Income_**<br>**_£_**<br>-<br>41,187<br>25,000<br>-<br>-<br>65,853<br>7,578<br>139,618<br>-<br>619,785<br>619,785<br>759,403|**_Net_**<br>**_movement_**<br>**_£_**<br>( 17,141)<br>41,187<br>145<br>( 23,399)<br>( 23,869)<br>8,238<br>( 3,359)<br>( 1,057)<br>( 3,809)<br>( 2,244)<br>( 6,053)<br>( 24,251)<br>**_£_**<br>-<br>-<br>( 24,855)<br>( 23,399)<br>( 23,869)<br>( 57,615)<br>( 10,937)<br>( 140,675)<br>( 3,809)<br>( 622,029)<br>( 625,838)<br>( 766,513)<br>**_Expenditure_**|**_Transfers_**<br>**_£_**<br>-<br>( 27,290)<br>800<br>-<br>23,869<br>-<br>2,621<br>-<br>( 1,566)<br>1,566<br>-<br>-<br>**_Gains/_**<br>**_(losses)_**<br>**_£_**<br>( 17,141)<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>( 17,141)|**_Carried forward_**<br>**_£_**<br>312,579|
|---|---|---|---|---|
|||||124,982<br>18,968<br>12,100<br>-<br>15,205<br>6,498|
|||||177,753<br>91,936<br>265,740|
|||||357,676|
|||||848,008|
|||||**_Net movement_**<br>**_£_**<br>( 17,141)|
|||||41,187<br>145<br>( 23,399)<br>( 23,869)<br>8,238<br>( 3,359)|
|||||( 1,057)<br>( 3,809)<br>( 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**<br>**Permanent endowment**<br>Philip and Dorothy Green endowment fund<br>**Restricted funds**<br>Philip and Dorothy Green income fund<br>Adopt a Music Creator<br>P A Thompson fund<br>P & D Green Young Artists fund<br>Make Music Day<br>Other restricted funds<br>**Unrestricted funds**<br>Designated funds<br>General fund<br>Total funds<br>**_Prior year net movement comprises:_**<br>**Permanent endowment**<br>Philip and Dorothy Green endowment fund<br>**Restricted funds**<br>Philip and Dorothy Green income fund<br>Adopt a Music Creator<br>P A Thompson fund<br>P & D Green Young Artists fund<br>Make Music Day<br>Other restricted funds<br>**Unrestricted funds**<br>Designated funds<br>General fund<br>Total funds|**_Brought_**<br>**_forward_**<br>**_£_**<br>317,339<br>109,330<br>35,078<br>61,050<br>1,470<br>10,263<br>1,939<br>219,130<br>87,096<br>235,869<br>322,965<br>859,434<br>**_Income_**<br>**_£_**<br>-<br>30,329<br>25,000<br>-<br>63,226<br>5,949<br>124,504<br>-<br>605,545<br>605,545<br>730,049|**_Net_**<br>**_movement_**<br>**_£_**<br>12,381<br>30,329<br>( 17,055)<br>( 25,551)<br>( 29,347)<br>( 3,296)<br>4,600<br>( 40,320)<br>( 13,115)<br>53,879<br>40,764<br>12,825<br>**_£_**<br>-<br>-<br>( 42,055)<br>( 25,551)<br>( 29,347)<br>( 66,522)<br>( 1,349)<br>( 164,824)<br>( 13,115)<br>( 551,666)<br>( 564,781)<br>( 729,605)<br>**_Expenditure_**|**_Transfers_**<br>**_£_**<br>-<br>( 28,574)<br>-<br>-<br>27,877<br>-<br>697<br>-<br>23,330<br>( 23,330)<br>-<br>-<br>**_Gains/_**<br>**_(losses)_**<br>**_£_**<br>12,381<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>12,381|**_Carried forward_**<br>**_£_**<br>329,720|
|---|---|---|---|---|
|||||111,085<br>18,023<br>35,499<br>-<br>6,967<br>7,236|
|||||178,810<br>97,311<br>266,418|
|||||363,729|
|||||872,259|
|||||**_Net movement_**<br>**_£_**<br>12,381|
|||||30,329<br>( 17,055)<br>( 25,551)<br>( 29,347)<br>( 3,296)<br>4,600|
|||||( 40,320)<br>( 13,115)<br>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. 

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## **THE NATIONAL FEDERATION OF MUSIC SOCIETIES TRADING AS MAKING MUSIC** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


|**16**<br>**ANALYSIS OF NET ASSETS BETWEEN FUNDS**<br>**Group**<br>**_2020_**<br>**CURRENT YEAR**<br>**_£_**<br>Fixed assets<br>40,223<br>Net current assets<br>317,453<br>357,676<br>**PRIOR YEAR**<br>Fixed assets<br>46,273<br>Net current assets<br>317,456<br>363,729<br>**Charity**<br>**_2020_**<br>**CURRENT YEAR**<br>**_£_**<br>Fixed assets<br>40,223<br>Net current assets<br>317,453<br>357,676<br>**PRIOR YEAR**<br>Fixed assets<br>46,273<br>Net current assets<br>317,456<br>363,729<br>**_Unrestricted_**<br>**_funds_**<br>**_Unrestricted_**<br>**_funds_**|**_2020_**<br>**_Restricted_**<br>**_funds_**<br>**_£_**<br>-<br>177,753<br>177,753<br>-<br>178,810<br>178,810<br>**_2020_**<br>**_Restricted_**<br>**_funds_**<br>**_£_**<br>-<br>177,753<br>177,753<br>-<br>178,810<br>178,810|**_2020_**<br>**_£_**<br>122,580<br>189,999<br>312,579<br>139,721<br>189,999<br>329,720<br>**_2020_**<br>**_£_**<br>122,584<br>189,995<br>312,579<br>139,725<br>189,995<br>329,720<br>**_Endowment_**<br>**_funds_**<br>**_Endowment_**<br>**_funds_**|**_2020_**<br>**_Total funds_**<br>**_£_**<br>162,803<br>685,205|
|---|---|---|---|
||||848,008|
||||185,994<br>686,265|
||||872,259|
||||**_2020_**<br>**_Total funds_**<br>**_£_**<br>162,807<br>685,201|
||||848,008|
||||185,998<br>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). 

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