Philharmonia Trust Limited (Limited by Guarantee)
FINANCIAL STATEMENTS
For the year ended 31 August 2023
Charity Registration No. 254191
Company Registration No. 913665
Philharmonia Trust Limited (Limited by Guarantee) Index
| Page | |
|---|---|
| Board of Trustees and Officers | 3 |
| Report of the Trustees | 4 |
| Statement of Trustees’ responsibilities’ | 5 |
| Independent Examiner’s report | 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Notes to the financial statements | 9 |
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Philharmonia Trust Limited (Limited by Guarantee) BOARD OF TRUSTEES AND OFFICERS
TRUSTEES Lord Mervyn King Philharmonia Limited
REGISTERED OFFICE
6 Chancel Street London SE1 0UX
INDEPENDENT EXAMINER MHA MHA House Charter Court 2 Swansea Enterprise Park Swansea SA7 9FS BANKERS Barclays Bank 1 Churchill Place London. E14 5HP LEGAL ADVISERS Stone King LLP Boundary House 91 Charterhouse Street London. EC1M 6HR
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Philharmonia Trust Limited (Limited by Guarantee) REPORT OF THE TRUSTEES
The Board of Trustees submits its report and the financial statements of Philharmonia Trust Limited for the year ended 31 August 2023.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The Trust is a charitable company limited by guarantee.
The Trust’s governing document is its Memorandum and Articles of Association. The main object of the Trust has been the advancement of musical education and appreciation through the Philharmonia Orchestra.
OBJECTIVES AND ACTIVITIES
The primary purposes and objectives of the Philharmonia Trust has been to promote the financial and general wellbeing of the Philharmonia Orchestra. The principal activity of the charity in the period has been to administer a mortgage on a property owned by Philharmonia Limited.
PUBLIC BENEFIT
When reviewing the charitable company’s objectives and activities and devising the future programme of the charitable company for the next period, the Trustees confirm that they have referred to the Charity Commission’s general guidance on public benefit and complied with its duty under the Charities Act 2011.
GOING CONCERN
The merger of Philharmonia Trust and Philharmonia Ltd in 2020 led to the assets of Philharmonia Trust being gifted to Philharmonia Limited. Certain legal liabilities have remained with the Philharmonia Trust but will be honoured by Philharmonia Limited on an ongoing basis, with the mortgage being secured on the property transferred to Philharmonia Limited. On the basis that Philharmonia Limited is able to pay its debts as they fall due, the accounts have been prepared on a going concern basis.
FINANCIAL REVIEW
At 31 August 2023, net assets were £nil (2022: £nil). Creditors in the balance sheet include a £1,516,092 (2022: £1,585,849) loan secured on the Chancel Street property with a corresponding debtor with Philharmonia Limited for this balance.
RISK MANAGEMENT
Throughout the period, the Trustees were responsible for the management of the risks faced by the charity and delegate day to day responsibility to the Chief Executive Officer of Philharmonia Limited.
With the merger and therefore the transfer of all assets to Philharmonia Limited, all risks are now managed by the Trustees of Philharmonia Limited.
CHARITY GOVERNANCE CODE
Philharmonia Trust Limited recognises that good governance in a charity is fundamental to its success. Philharmonia Trust Limited and its Trustees continually worked towards achieving the highest standards of governance, by reference to the principles and recommended practice of the charity governance code. The merger between Philharmonia Trust Limited and Philharmonia Limited has improved the governance structure to better serve the needs of the organisation and to make it as sustainable as possible for the long term.
This report was approved by the Board of Philharmonia Limited, the Corporate Trustee
Signed: Lord Mervyn King
Dated: 23/05/2024
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Philharmonia Trust Limited (Limited by Guarantee) REPORT OF THE TRUSTEES
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The Board of Trustees is responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Board of Trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
as explained in the Going Concern paragraph within the Accounting Policy section (page 16) to the financial statements, the trustees do not believe the going concern basis to be appropriate and, in consequence, these financial statements have not been prepared on that basis.
The Board of Trustees is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. It is also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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Philharmonia Trust Limited (Limited by Guarantee) INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF PHILHARMONIA TRUST LIMITED
Independent Examiner’s report to the trustees of Philharmonia Trust Limited
I report to the charity trustees on my examination of the accounts of the company for the year ended 31[st] August 2023.
Responsibilities and basis of report
As the charity’s trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act).
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under Section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination, I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.
Independent examiner’s statement
I have completed my examination. I can confirm that no matters have come to me attention in connection with the examination giving me cause to believe:
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Accounting records were not kept in respect of the company as required by Section 386 of the 2006 Act; or 2. The accounts do not accord with those records; or
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The accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirements that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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The accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Rachel Doyle ACA FCCA DChA MHA Chartered Accountants MHA House Charter Court Swansea Enterprise Park Swansea SA7 9FS
23/05/2024 Date ………………………………
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Philharmonia Trust Limited (Limited by Guarantee)
STATEMENT OF FINANCIAL ACTIVITIES
Incorporating the Income and Expenditure Account for the year ended 31 August 2023
| Note | Unrestricted Restricted Endowment Total |
Unrestricted Restricted Endowment Total |
|
|---|---|---|---|
| Funds Funds Funds Funds |
Funds Funds Funds Funds |
||
| 2023 2023 2023 2023 |
2022 2022 2022 2022 |
||
| £ £ £ £ |
£ £ £ £ |
||
| Operating income from: | |||
| Investment income | 1 | 41,595 41,595 |
49,626 - - 49,626 |
| Total operating income | 41,595 41,595 |
49,626 - - 49,626 |
|
| Operating expenditure on: | |||
Charitable activities |
2 | (41,595) (41,595) |
(49,626) - - (49,626) |
| Total operating expenditure | (41,595) (41,595) |
(49,626) - - (49,626) |
|
Other recognised gains / (losses) |
|||
| Net (Losses) on investment assets | - - - - |
- - - - |
|
| Net income / (expenditure) | - - - - |
- - - - |
|
| Transfers between funds | 8 | - - - - |
- - - - |
| Net movement in funds | - - - - |
- - - - |
|
| Total funds brought forward | 8 | - - - - |
- - - - |
| Total funds carried forward | 8 | - - - - |
- - - - |
All gains and losses recognised in the period are included above.
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Philharmonia Trust Limited (Limited by Guarantee) BALANCE SHEET Company registered number: 913665 As at 31 August 2023
| Note Current assets Debtors 4 Cash at bank and in hand 3 Total current assets Creditors: Amounts falling due < 1 period 5 Net current assets Debtors: Amounts receivable after > 1 period 4 Creditors: Amounts falling due > than 1 period 6 Net assets Total funds |
2023 £ 74,378 27,687 102,065 (102,065) - 1,441,714 (1,441,714) - - |
2022 £ 61,593 24,040 |
|---|---|---|
| 85,633 | ||
| (85,633) | ||
| - | ||
| 1,524,256 | ||
| (1,524,256) | ||
| - | ||
| - |
These financial statements have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006, and in accordance with the provisions of FRS 102 Section 1A – small entities.
The directors are satisfied that the company is entitled to exemption from the requirements to obtain an audit under section 477 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of the accounts.
The members have not require the company to obtain an audit of the financial statements for the year in question in accordance with section 476 of the Companies Act 2006.
The financial statements were approved by the Board of Philharmonia Trust Limited and authorised for issue on ……
and are signed on its behalf by: Lord Mervyn King
Dated: 23/05/2024
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Philharmonia Trust Limited (Limited by Guarantee) ACCOUNTING POLICIES For the year ended 31 August 2023
The principal accounting policies, all of which have been applied consistently throughout the period and the preceding period, are set out below.
BASIS OF PREPARATION
The accounts have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102 (effective 1 January 2015 (Charities SORP FRS 102) the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), and the Companies Act 2006.
Philharmonia Trust Limited meets the definition of a public benefit entity under FRS 102 and have been prepared under the historical cost convention, but on the basis that the charity is no longer a going concern.
GOING CONCERN
The merger of Philharmonia Trust and Philharmonia Ltd in 2020 led to the assets of Philharmonia Trust being gifted to Philharmonia Limited. Certain legal liabilities have remained with the Philharmonia Trust but will be honoured by Philharmonia Limited on an ongoing basis, with the mortgage being secured on the property transferred to Philharmonia Limited. On the basis that Philharmonia Limited is able to pay its debts as they fall due, the accounts have been prepared on a going concern basis.
KEY AREAS OF ESTIMATION UNCERTAINTY
In the application of the charity’s accounting policies, trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources.
There are no key areas of significant judgements or estimation uncertainty.
INCOME
Voluntary income, including donations, gifts and legacies, as well as grants that provide core funding or are of a general nature are recognised where there is entitlement, receipt is probable and the amount can be measured with sufficient reliability. Such income is only deferred if the donor has requested the amount to be allocated to specific concerts, engagements or projects, in which case it is allocated to the financial period in which the work takes place, or the donor has imposed condition which must be met before the Charity has unconditional entitlement.
Donations are credited to the statement of financial activities in the period in which they are received, unless allocated to a specific period, as specified by or agreed with, the funder.
EXPENDITURE
Expenditure is recognised when a liability is incurred. Grants payable are recognised when the amount and nature of the grant has been agreed by the Trustees and is communicated to the recipient.
INTEREST RECEIVED
Investment income is included when receivable.
FUNDS
Unrestricted funds are donations or other income, receivable or generated for the objects of the charity without further specified purpose and are available as general funds.
Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of management and support costs.
EMPLOYEES
Philharmonia Trust Limited does not have any directly employed staff.
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Philharmonia Trust Limited (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2023
| 1 | INVESTMENT INCOME | 2023 | 2022 | |
|---|---|---|---|---|
| £ | £ | |||
| Income from Philharmonia Ltd - Mortgage Interest | 41,595 |
49,626 | ||
| 41,595 |
49,626 | |||
| 2 | EXPENDITURE ON CHARITABLE ACTIVITIES | |||
| 2023 | 2022 | |||
| £ | £ | |||
| Interest payable on loans | 41,595 | 49,626 | ||
| Total Expenditure on Charitable Activities | 41,595 | 49,626 | ||
| 3 | CASH | 31 August | 31 August | |
| 2023 | 2022 | |||
| £ | £ | |||
| Cash at bank and in hand | 27,687 | 24,040 | ||
| 27,687 | 24,040 | |||
| 4 | DEBTORS | 31 August | 31 March | |
| 2023 | 2022 | |||
| £ | £ | |||
| Amounts falling due within one year: | ||||
| Amounts due from Philharmonia Limited | 74,378 | 71,806 | ||
| Amounts falling due after more than one year: | ||||
| Amounts due from Philharmonia Limited | 1,441,714 | 1,514,043 | ||
| 1,516,092 | 1,585,849 | |||
| The debtor from Philharmonia Limited relates to fulfilment of the Chancel Street mortgage. | ||||
| 5 | CREDITORS: Amounts falling due within one year | 31 August | 31 August | |
| 2023 | 2022 | |||
| £ | £ | |||
| Bank Mortgage Loan | 74,378 | 61,593 | ||
| Amounts due to Philharmonia Limited | 27,687 | 24,040 | ||
| 102,065 | 85,633 |
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Philharmonia Trust Limited (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2023
6
7
| CREDITORS: Bank Loan Amounts repayable in one period or less (see note 12) Amounts repayable in one to two periods Amounts repayable in two to five periods Amounts repayable in over five periods CREDITORS: Amounts falling after one year Bank Mortgage Loan |
31 August 2023 31 August 2022 £ £ 74,378 71,806 76,228 74,378 239,748 234,439 1,125,738 1,205,226 1,516,092 1,585,849 31 August 2023 £ 31 August 2022 £ 1,441,714 1,524,256 1,441,714 1,524,256 |
31 August 2023 31 August 2022 £ £ 74,378 71,806 76,228 74,378 239,748 234,439 1,125,738 1,205,226 1,516,092 1,585,849 31 August 2023 £ 31 August 2022 £ 1,441,714 1,524,256 1,441,714 1,524,256 |
31 August 2023 31 August 2022 £ £ 74,378 71,806 76,228 74,378 239,748 234,439 1,125,738 1,205,226 1,516,092 1,585,849 31 August 2023 £ 31 August 2022 £ 1,441,714 1,524,256 1,441,714 1,524,256 |
|---|---|---|---|
| 1,585,849 |
The amounts repayable relate to a mortgage loan from Barclays Bank relating to the property at 6 Chancel Street owned by Philharmonia Limited. The loan is at a rate of 2.49% per annum (fixed) repayable over the total loan term of 23 years. The mortgage principal repayments recommenced 1 April 2021. The loan is secured on the property owned by Philharmonia Limited. The comparative figures have been amended to better reflect the split of the loan over the various periods.
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Philharmonia Trust Limited (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2023
| 8MOVEMENT IN FUNDS – Unrestricted funds: General fund Total Unrestricted Funds Total Funds |
CURRENT PERIOD 1 September 2022 Gains and losses 31 August 2023 Income Expenditure Transfers £ £ £ £ £ £ - 41,595 (41,595) - - - - 41,595 (41,595) - - - - 41,595 (41,595) - - - |
|---|---|
| MOVEMENT IN FUNDS – PRIOR PERIOD 1 September Gains and |
MOVEMENT IN FUNDS – PRIOR PERIOD 1 September Gains and |
31 August |
|---|---|---|
| 2021 losses Income Expenditure Transfers |
2022 | |
| £ £ £ £ £ |
£ | |
| Unrestricted funds: General fund |
- 49,626 (49,626) - - |
- |
| Total Unrestricted Funds | - 49,626 (49,626) - - |
- |
| Total Funds | - 49,626 (49,626) - - |
- |
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Philharmonia Trust Limited (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2023
| 9 ANALYSIS OF NET ASSETS BETWEEN FUNDS (CURRENT PERIOD) Unrestricted funds 2023 Restricted funds 2023 Endowment fund 2023 £ £ £ Assets over one period 1,441,714 - - Current assets 102,065 - - Current liabilities (102,065) - - Liabilities over one period (1,441,714) - - - - - ANALYSIS OF NET ASSETS BETWEEN FUNDS (PRIOR PERIOD) Unrestricted funds 2021 Restricted funds 2021 Endowment fund 2021 £ £ £ Assets over one period 1,524,256 - - Current assets 85,633 - - Current liabilities (85,633) - - Liabilities over one period (1,524,256) - - - - - |
Total Funds 2023 £ 1,441,714 102,065 (102,065) (1,441,714) |
|---|---|
- Total funds 2021 £ 1,524,256 85,633 (85,633) (1,524,256) |
|
- |
10 CAPITAL - LIMITED BY GUARANTEE
At 31 August 2023, all members had a liability not exceeding £1 per member. There was 1 member at 31 August 2023 (2022 - 1).
11 RELATED PARTY TRANSACTIONS
There were no related party transactions in the current year, other than the income received from Philharmonia Limited.
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