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2022-03-31-accounts

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BRITTEN PEARS ARTS

Company Registration Number: 980281 Registered Charity Number: 261383

ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2022

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BRITTEN PEARS ARTS

ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022

INDEX

PAGE NO:

1 LEGAL AND ADMINISTRATIVE DETAILS
2 INTRODUCTION FROM CHAIR OF BRITTEN PEARS ARTS
3 – 16 TRUSTEES’ REPORT INCLUDING STATEMENT OF TRUSTEES’ RESPONSIBILITIES
17 – 19 INDEPENDENT AUDITORS’ REPORT
20 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES
21 CONSOLIDATED AND CHARITY BALANCE SHEETS
22 CONSOLIDATED STATEMENT OF CASH FLOWS
23 – 43 NOTES TO THE CONSOLIDATED ACCOUNTS

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LEGAL AND ADMINISTRATIVE DETAILS

NAME Britten Pears Arts LEGAL STRUCTURE The Charity is a company limited by guarantee and incorporated in England and Wales, registered number: 980281 CHARITY REGISTRATION NUMBER 261383 TRUSTEES Sir Simon Robey (Co-Chair to 14 May 2021, Chair from 10 December 2021) Sir Vernon Ellis (Co-Chair to 14 May 2021, Chair from 14 May 2021 to 10 December 2021) Sarah Faulder Dr Scot McKendrick Angela Mallinson Jamie Njoku-Goodwin Garth Pollard David Robbie Janis Susskind Alasdair Tait Laura Wade-Gery Roger Wright Sarah Zins HONORARY PRESIDENTS The Lord Stevenson of Coddenham Colin Matthews HONORARY VICE PRESIDENT The Lord Geddes CHIEF EXECUTIVE Roger Wright PRINCIPAL AND REGISTERED OFFICE Snape Maltings Concert Hall, Snape, Saxmundham, Suffolk IP17 1SP AUDITORS RSM UK Audit LLP, Blenheim House, Newmarket Road, Bury St Edmunds, Suffolk IP33 3SB COMMERCIAL BANKERS Barclays Bank Plc, Suffolk Coastal Group, 4 Church Street, Woodbridge, Suffolk IP12 1DJ INVESTMENT MANAGERS AND CCLA Investment Management Limited, 85 Queen Victoria ADVISORS Street, London EC4V 4ET LEGAL ADVISORS Prettys Solicitors, 25 Elm Street, Ipswich IP1 2AD INVESTMENT PROPERTY ADVISORS Fenn Wright Limited, 1 Buttermarket, Ipswich IP1 1BA

Britten Pears Arts Financial Statements 2021/22

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Introduction

During another exceptional year Britten Pears Arts has strived to ensure that music, arts and heritage continue to transform people’s lives, bring communities together and enhance daily life. We continue to aim for the arts to effect powerful positive change in, and for society, and making the arts “useful.” We are internationally recognised yet firmly rooted in our local community and Suffolk countryside. During the year we have offered innovative learning and training in music and heritage and worked with freelance musicians and artists to deliver outstanding experiences.

After a 5-month period of restrictions in May 2021 Britten Pears Arts was amongst the vanguard of organisations that brought back live public performance, as it had done after the initial lockdowns of 2020. For the second year in a row we were unable to hold the Aldeburgh Festival however there was a series of socially distanced performances over 4 June weekends. In August we built an outdoor stage structure on which we presented 29 free concerts. The Dome Stage became an instant success and for 40% of the audience was the first time they have attended a performance at Snape Maltings. We opened The Red House, archive and grounds and continued our lively series of online events and digital engagement.

We celebrate the commitment and determination of staff and artists who brought back live music for audiences, ensured that our sites were open and welcoming to all and maintained and developed the amazing programmes and training we ran for musicians, composers, young people, those in later life, emerging professionals and those working in creative health settings. The resilience of the staff team, led by Roger Wright, has been inspirational.

None of this could have been achieved without the incredibly generous, important and continued support of the Arts Council England and Department for Digital, Culture, Media and Sport through the second Culture Recovery Fund grant and our ongoing National Portfolio Organisation status. We are especially thankful to all our supporters, individuals, companies and public bodies, Trusts and Foundations who gave us vital support during the year. The support via our trading arm is also an important factor in ensuring that we are able to fulfil our charitable objectives and my appreciation goes to all the staff and directors of Snape Maltings Trading Limited.

Many thanks to the board of trustees who were enormously supportive with their time and advice during a continuing challenging and unprecedented period. I particularly want to thank Sir Vernon Ellis, who stepped down as Co-Chair of Britten Pears Arts during the year, for his invaluable work. Finally, my renewed gratitude goes to our supporters, audiences, visitors, participants, volunteers and artists for all that they do for Britten Pears Arts.

Sir Simon Robey Chair Britten Pears Arts

Britten Pears Arts Financial Statements 2021/22

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TRUSTEES’ REPORT (INCORPORATING STRATEGIC REPORT)

The Trustees present their report along with the Charity’s and Group’s financial statements for the year ended 31 March 2022.

The Charity aims to promote and encourage the knowledge, study, teaching and practice of the arts in all their forms throughout the world and advance education in matters related to peace for the benefit of the public; promote and encourage any other charitable object or purpose and to engage in any field of charitable grant making activity permitted by English Law.

Britten Pears Arts was founded on 1 April 2020 when Snape Maltings and the Britten-Pears Foundation merged. It exists to ensure that the legacies of Benjamin Britten and Peter Pears continue to be enjoyed worldwide. Their legacy includes the Aldeburgh Festival, their archive, a cutting-edge programme of creative health work, the BrittenPears Young Artist Programme, the house where they lived and extensive learning and inclusion work throughout Suffolk and beyond. Their legacy also incorporates their attitude, values and belief in helping communities, the disadvantaged in society and those who don’t have access to music or culture.

Britten Pears Arts uses music to change and enrich thousands of lives every year, from nurturing young emerging artists to supporting people in challenging conditions, all whilst bringing world-class music to Suffolk. Inspired by Benjamin Britten’s founding vision, it provides a place where artists at all stages of their career are given the time and space to develop. It is also home to life-changing community projects, making the most of music’s ability to help in the most difficult of circumstances. It maintains, conserves and develops The Red House as a major heritage site and uses it to encourage visitors to learn more about the life and work of Benjamin Britten and Peter Pears. It holds a unique archive of manuscripts, documents, artworks, and multimedia materials for the public. It provides access to the collections and disseminates them as widely as possible, both physically and virtually.

In setting objectives, developing strategies and undertaking activities, the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit. The Charity meets the definition of a public benefit entity under the Charities SORP (FRS 102).

The information given on page 1 forms part of this report.

STRUCTURE, GOVERNANCE AND MANAGEMENT

STATUS AND GOVERNING INSTRUMENT

Britten Pears Arts is a registered charity and a company limited by guarantee and the organisation is governed by its Articles of Association.

MEMBERS OF THE BOARD

The governing body of Britten Pears Arts is its Board of Directors which has responsibility to ensure the Charity is properly managed. As Britten Pears Arts is a charity, each Director is more usually referred to as a Trustee. New Trustees are appointed following a selection process, a central feature of which is our commitment to equality, diversity and inclusion. Confirmation of appointment is undertaken at the subsequent Annual General Meeting.

Trustees are provided with an induction programme involving all aspects and activities of the organisation, including its relationship with its subsidiary undertakings, Snape Maltings Trading Limited and Britten Estate Limited. The Trustees recognise the need to maintain an up-to-date skillset which is applicable to today’s changing charity environment.

ORGANISATIONAL STRUCTURE

Besides the Charity, the Group’s main entities consist of Snape Maltings Trading Limited (company registration: 1519527), and Britten Estate Limited (company registration: 2063909). The remaining assets and liabilities of the former operating (now dormant) subsidiary Aldeburgh Music Endowment Fund were transferred to Britten Pears Arts on 31 March 2021. The financial statements for Britten Pears Arts consolidate the Charity’s results with those of other Group members including their subsidiaries. Transactions between Group members are eliminated as part of the consolidation process.

Snape Maltings Trading Limited is a wholly owned subsidiary of the Charity and functions to generate commercial profits in support of the charitable activities of Britten Pears Arts. It undertakes retail and catering activities at Snape Maltings through the operation of shops, galleries and catering outlets. The company also manages the hiring of the sites’ facilities for weddings, conferences and other non-artistic events, and operates a holiday lettings business. Its financial results are summarised in Note 3.

Britten Pears Arts Financial Statements 2021/22

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TRUSTEES’ REPORT (continued)

Britten Estate Limited is a wholly owned subsidiary of the Charity and functions to generate commercial profits in support of the charitable activities of Britten Pears Arts. The company promotes the music of Benjamin Britten and receives income in the form of royalties, and its financial results are summarised in Note 3.

Snape Maltings Trading Limited has a wholly owned subsidiary, Elm Property Management (Snape Maltings) Limited (company registration: 6371788), which undertakes the care and management of residential properties at Snape Maltings on behalf of the leaseholders. For statutory purposes, this company was dormant for the year.

Elm Property Investments (Snape Maltings) Limited (company registration: 9641832), is a wholly owned subsidiary of Snape Maltings Trading Limited, which owns the freehold of a number of properties at Snape Maltings and receives an annual ground rent from the leaseholders.

The Leadership Team are responsible for the day to day operational management across the group of companies. The team meet weekly and report through committees to Board on all aspects of governance, financial performance and risk management.

GOVERNANCE

Trustee Board

The activities of Britten Pears Arts are ultimately controlled by its trustee board which holds regular meetings throughout the year and is committed to the principles of the Charity Governance Code. By providing a range of experience and skills, it helps the operational management team to achieve artistic success with stable finances. The Trustees provide guidance and knowledge across the organisation’s activities, specifically in areas including artistic, financial and risk management, strategy, logistics, human resources, marketing, property and investments. They also support the organisation in maintaining a wide network of stakeholders, including existing and potential funders.

Ability to hold office

Prior to appointment, Trustees are required to confirm they are not barred from holding office as a Trustee or Director.

Declaration of interests

In order to ensure that decision-making is transparent, all Trustees and senior managers of the Group are required to sign a Declaration of Interests and a standing agenda item requires Trustees and others present to declare any interests that may arise in the course of each board meeting.

Audit Committee

The Audit Committee is chaired by David Robbie and includes board member Sarah Faulder and former trustees Christopher Higgins and Oliver Rivers. Any trustee may attend meetings. The Audit Committee monitors the integrity of the statutory financial statements, ensures the effectiveness of the systems of internal and risk control and manages the effectiveness, performance and objectivity of the external auditors.

The Audit Committee meets at least twice each year with at least one meeting including the Group’s external auditors. The performance and re-appointment of the auditors is reviewed each year and the Audit Committee Chairman makes an appropriate recommendation to the Trustees ahead of the Annual General Meeting.

Finance Committee

A separate Finance Committee assists the board in monitoring its management accounts, budgets and forecasts and overall financial performance and in recommending the strategy, policies and procedures for the Group’s investments and estate assets. The Finance Committee is chaired by David Robbie and includes board members Garth Pollard and Sarah Zins and former trustees Christopher Howes, Andrew Staff (resigned 4 May 2022) and Stephen Swift.

Remuneration and Nominations Committee

As at 31 March 2022 the Remuneration Committee comprised Sir Vernon Ellis, David Robbie, Sir Simon Robey, Janis Susskind and Sarah Zins. The Committee meets as necessary to review and make recommendations relating to changes to employees’ salaries and benefits, including that of the Chief Executive. The Committee is also responsible for making recommendations to the Board on the appointment of new Trustees.

Britten Pears Arts Financial Statements 2021/22

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TRUSTEES’ REPORT (continued)

KEY MANAGEMENT PERSONNEL

All Trustees and non-executive directors of Group subsidiaries, together with Roger Wright (Chief Executive Officer), Sarah Bardwell (Executive Director), Harry Young (Chief Operating Officer), and Stephen Pugh (Chief Financial Officer, retired 10 August 2022) are considered to be the Group’s key management personnel.

Remuneration levels for key management employees are set within the context of budgets and plans which are approved by the board before implementation and include, where appropriate, recommendations from the Remuneration Committee. Details of payments to key management personnel are provided in Note 7.

PRINCIPAL RISKS AND UNCERTAINTIES

The Trustees undertake a formal process to review risks and risk management strategies proposed by the leadership team. A risk register is reviewed twice a year to identify the financial, reputational and organisational risks the Group faces. The scale of the risks is assessed in terms of potential impact, likelihood of occurrence and means of mitigation. Management have clearly defined responsibilities in relation to their responsibility for and the management of all risks.

Britten Pears Arts carefully planned their response to the easing of restrictions in April and May 2021, so that trading and performances could start up again as soon as it was legally possible.

The Trustees consider that their plans for achieving the Group’s objectives provide a satisfactory means of mitigating risk and uncertainties to the extent reasonably achievable. The Trustees have considered the adequacy of the Group’s internal controls and have put measures in place to further improve, including a review of the budgeting process and new Financial Regulations.

Principal Risks and Uncertainties

At the start of the 2021/22 business year the evaluation of risk within the risk register reflected the fact that there was an easing of restrictions and trading could once again commence. During 2021/22 the operating environment changed considerably, with a highly buoyant Q1 and Q2 but then with a deteriorating economic outlook after Christmas and then the war in Ukraine.

SUMMARY OF CONSEQUENCES SUMMARY OF MEASURES IN PLACE
Key Risk- Impact on long term financial model of decline in royalties
Royalties currently account for a
considerable proportion of annual income.
This source of revenue will disappear in
2046.
Robust plans need to be put in place to
ensure that the long-term business viability
is not impacted by this loss of revenue.		 •
Maintain cash reserves.
•
Build a £15m endowment.
•
Increase philanthropic income and legacies.
•
Tangible assets kept in good condition.
•
Maintain good relationships with publishers
•
Maintain a strong fundraising team that can
grow year on year income.
•
Develop other income streams from other
areas of the organisation that can contribute
to the future financial position.
Key Risk– Political and economic uncertainty
Changes in the global and national
economic environment such as interest
rates, inflation and house prices could have
an adverse impact on financial long term
viability.		 •
Maintaining strong fundraising team.
•
Regular review of financial performance and
KPI’s.
•
Stress testing of financial plans.
•
Exploration of new ventures.
•
Political networking to ensure that the
organisation can respond to changes as
quickly as possible.
•
Monitoring of cash flow forecasts.
•
Retail Buyers regularly feeding back to
management on changes in costs (including
shipping costs).
Key Risk– Operational capacity / stretch (through era of change)

Britten Pears Arts Financial Statements 2021/22

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The organisation has changed considerably
following the merger in 2021 and during the
post pandemic recovery. There is a risk in
how the organisation is resourced to
respond to the operational delivery.		 •
Investment in management training.
•
Continuous review of the operating structure
to ensure that it is fit for purpose.
•
Investment in new systems and processes.
•
Pay benchmarking.
•
Good internal communications and the
development of a strong and supportive
work culture to ensure key personnel are
retained.
Key Risk– Nationally Significant Infrastructure Projects
With Sizewell C having now been granted
Development Consent, there is a risk that if
the project goes ahead visitors may be put
off coming to the area for fear of traffic
congestion. Furthermore, we may struggle
to recruit i.e. cleaners and hospitality staff.		 •
Keep informed of details of the programme.
•
Sub Committee established to work through
the impact and response in detail.
•
Close liaison with developers and local
authorities.
•
Close liaison with opposition groups.
•
Through tourism connections, influence
tourism mitigation fund.
Key Risk– Covid-19 Pandemic
The impact of the pandemic stabilised
during the course of 2021/22, with
audiences being confident with the
measures that BPA put in place.
There is an ongoing risk that the pandemic
could return, and the organisation needs to
be ready to respond to all future
challenges.		 •
Dynamic programming and creative
enterprise.
•
Regular board contact.
•
Good communications plan (external and
internal).
•
Close contact with Arts Council England
(ACE) and Department of Media Culture and
Sport (DCMS) group.
•
Diligence in learning and adhering to
guidelines.
•
Be prepared to programme outdoor
concerts.
Key Risk– Boiler / plant failure
There is the intention to replace the current
concert hall heating system, however there
is a risk that the boiler and associated plant
equipment could fail prior to the
replacement taking place. This would
severely impact our operations.		 •
New capital project to include the renewal of
existing plant.
•
Additional efforts to maintain biomass boiler.
Key Risk– Unexpected / Unbudgeted Expense
There is a risk that significant unbudgeted
expenditure could arise during the course
of the year owing to rising inflation and
global economic uncertainty.		 •
Maintain adequate reserves.
•
Robust budgeting process.
•
Strong financial controls.
Key Risk– Deterioration of liquid reserves
A downturn in trading and in box office
receipts has the potential to significantly
impact cash receipts		 •
Adequate reserves policy.
•
Increase philanthropic income.
•
Regular review of investments.
•
SMTL board and management team to
create contingency plans.

Britten Pears Arts Financial Statements 2021/22

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TRUSTEES’ REPORT (continued)

OBJECTIVES AND ACTIVITIES

The Charity is established to promote and assist the advancement of education in the arts and crafts including music, drama, dancing, mime, painting, sculpture, graphic and other visual arts, literature, poetry and digital arts, and to extend and increase the appreciation, knowledge and understanding of the arts and crafts in all their forms. The Charity has extended the breadth of its offering over the past year, responding to opportunities and learning from past experience as to how to maximise the impact from the available resources. The most notable change has been the increase in community work.

AIMS AND OBJECTIVES

Objectives for the coming year

The main objectives for the 2022-2023 year are:

Achieving Objectives

The Charity’s activities and achievements in pursuit of its objectives for the past year are highlighted in the Strategic Report and in this year in particular they include the challenges of recovering from the Covid-19 pandemic. The Charity remains well placed to achieve its ongoing objectives through:

STRATEGIC REPORT

ACHIEVEMENTS AND PERFORMANCE

In line with the aims and objectives of the organisation, Britten Pears Arts continues to build on the success of its reputation as a leading international creative campus across two sites, renowned as a performance centre, an artist development hub, critically acclaimed for its learning and inclusion work, unique archive and heritage house and museum offer, and developing its growing reputation as a distinctive leader in the area of creative health with music.

Britten Pears Arts Financial Statements 2021/22

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TRUSTEES’ REPORT (continued)

Artistic Activities

Performance programme

For the second year in a row the Aldeburgh Festival in its normal format was not able to go ahead. But in May 2021 after a 5-month hiatus we welcomed socially-distanced audiences back to the concert hall for a performance by members of BBC Symphony Orchestra under Ryan Wigglesworth. In June we presented a series of shorter, repeated Festival type concerts over four weekends. Highlights included a weekend curated by tenor, Allan Clayton, whose solo recital included the premiere of Silenced by Mark-Anthony Turnage, he also performed in another concert in the series including Britten’s Serenade for Tenor, Horn and Strings with Aurora Orchestra. There were performances of all five Britten Canticles with Roderick Williams and Feargal Mostyn-Williams and Britten Sinfonia staged two programmes including premieres of works by Tansy Davies, John Woolrich and the late Sir John Tavener, the latter with oboist Nicholas Daniel and countertenor Andrew Watts. New productions included Juliet Fraser’s solo performances in Samuel Beckett’s Not I and Morton Feldman’s Three Voices. The Kaleidoscope Collective, led by Tom Poster gave their concert hall debut with American tenor, Karim Suleyman. Colin Matthews’ new arrangement of Britten’s Double Concerto was given its premiere by Royal Academy of Music Strings conducted by John Wilson.

Summer at Snape saw the opening of the Dome Stage in late July, a free outdoor performance space supported by the Arts Council’s Cultural Recovery Fund. It featured a diverse-range of artists including Abel Selacoe, Alice Zawadszki, The Fontanas, Eliza Carthy and Ayanna Witter-Johnson. Despite the odd heavy downpour, audiences were undeterred, enjoying the informal atmosphere on the Henry Moore Lawn. There was a month of 30 concerts during August including the London Symphony Orchestra and the Royal Philharmonic Concert Orchestra, Snape debuts from Rufus Wainwright and Mica Paris and returning groups included The London Community Gospel Choir and Tango Siempre.

Autumn programming featured Mitsuko Uchida, The Shires, Nicola Benedetti and Aurora Orchestra and John Wilson and the Sinfonia of London over the Britten weekend. There was a variety of concerts including Bryn Terfel, Tenebrae’s Messiah, London Gay Men’s Chorus and The Snowman. In addition, English Touring Opera (ETO) performed Handel’s Amadigi, and the Co-op Juniors Christmas Spectacular and various hires all returned to the Hall during the year.

Britten Pears Young Artist Programme (BPYAP)

The Britten Pears Young Artist Programme was remodelled during the year and a single cohort of 22 young artists were recruited to take part. They received a year-round artist development offer, focussed on masterclasses and coaching, working with a variety of tutors, mentoring, performances and industry relevant opportunities. The individual bespoke development available for the artists was extremely well received as the young professional musicians at different career stages emerged from the pandemic.

Aldeburgh Young Musicians (AYM)

With the support of the Department for Education as a National Centre for Advanced Training, AYM transitioned from the vibrant online programme established during the pandemic back to an in-person programme with residential opportunities for musicians aged 10-18 years old with a variety of weekend and weeklong sessions. These included 41 AYMs who took part in study groups, small ensembles and performance coaching in a masterclass style setting, larger vocal groups for 31 AYMs including a Blues session and 17 AYMs took part in an Open Session on Arabic Music. The programme has allowed the young people to explore, create and perform a diverse selection of musical styles alongside inspirational and empowering artists.

Digital Public Engagement

Public engagement was mainly delivered through a continuation of digital activity, until the gradual re-emergence into face-to-face events in the early summer. Four short informational films were created to provide context and background for the Concert Hall programming, two focused on Dennis Brain, one on Imogen Holst and one on Britten’s Canticles. In total these were viewed more than 1250 times. A third podcast season was created with guests including composer Tansy Davies, performers Lana Bode and Samantha Crawford, and Music Director Joeseph McHardy. In addition, there was a series of Live from the Archive talks throughout the year, broadcast in the evenings from rooms in The Red House and other spaces on the site.

There was no Festival Book for 2020 or 2021, so a variety of essays were commissioned in relation to the cancelled 2020 Festival including a centenary tribute to Dennis Brain and gathered in one publication called “Interlude:20202021.”

Britten Pears Arts Financial Statements 2021/22

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TRUSTEES’ REPORT (continued)

A dedicated digital producer was appointed to focus on capturing some of the residency and BPYAP work, including films Faye MacCalman, Shruthi Rajasekar & Reylon Yount and Join the Din Residency films; a film outlining the structure of the BPYAP course and a film about the BPYAP and community collaboration project.

The Red House

During the open period of the year over 6,000 visitors enjoyed The Red House and gardens over 98 days. Volunteers were crucial in enabling the site to be open and their contribution has totalled 1,375 hours of commitment. In addition to public visitors live events at The Red House resumed, including talks, concerts and study days. Over 200 people visited for Heritage Open Days which featured Britten Pears artists Lotte Betts-Dean and Harry Rylance performing in the garden. Britten and Ghosts, a Halloween event in the House with archival material on display and a study morning relating to the programme of British music in the concert hall. Scratch Choir also performed a ‘Ceremony of Carols’ day in Aldeburgh Church in December. The garden was also opened for two days as part of the National Gardens Scheme. Various Archive and Red House displays took place over Britten Birthday weekend celebration, in addition to the Peter Pears Portraits and Christian Rohlf exhibitions.

Community

Re-engagement with schools in-person began with regular visits to The Red House for school groups who took part in sessions exploring the curriculum through our collection.

A new group of Friday Afternoons songs by Russell Hepplewhite and Michael Rosen was launched and premiered online by 10 groups from across the UK and Ireland and then rolled out across the country.

Group A, our young person’s singing group, worked online as well as performing in person at Snape Maltings in collaboration with Stratford Circus’ New Young Voice Collective (NewYVC) and at the First Light Festival.

We held Celebration, the annual festival showcasing the diverse music made by young people in the area. This year it included 28 schools and 5 community groups, as well as Group A and members of AYM totalling approximately 1,190 young people across the week.

Participate, our strand of work for older people and those who are isolated or vulnerable in our local community began again in person in Leiston, Saxmundham and Aldeburgh and included a Garden Party at The Red House and a Tea Dance at Snape Maltings.

We held weekly free to attend music sessions in the garden of The Red House attracting 25-30 families and their 0–5 year-olds per week.

We partnered with Spitalfields’ Trainee Music Leader Scheme alongside organisations including Welsh National Opera and The Multi-Story Orchestra to develop training for local musicians who have then delivered activity for Britten Pears Arts.

We resumed in-person activity at HMP Warren Hill towards the end of the period and created an interactive tapestry that visually, but anonymously, reflected participants recording their music.

Creative Health

Work has developed around a multi-year strategy for our Creative Health work and its impact & use across the Music Programme, working towards the further inclusion of Creative Health across the organisation and connecting national conversations with local activities. As part of this we ran a Collaborative Course for Musicians and Music Therapists that took place in partnership with Anglia Ruskin University, Sing To Beat Parkinson’s continued their app development project on-site, MOT for artists working in challenging circumstances and we led various ThinkTanks including one about Young Musicians Health & Wellbeing.

Britten Pears Arts Financial Statements 2021/22

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TRUSTEES’ REPORT (continued)

Residencies

Residencies and creative retreats returned to Snape and The Red House and it was clear that artists were keen to recommence this type of work again and appreciated the opportunity to be creative without being overly pressured. There were 89 residencies and 24 creative retreats, some of which were in partnership with Cheltenham Jazz Festival and Sage Gateshead. Artists undertook postponed residences and it was necessary to adapt the engagement with the artists to suit their needs. Examples of activity include cellist Matthew Barley, who created a film with emerging composer Nouria Bah. Nadine Benjamin had a two-week residency/production period of her opera BEAM culminating in two performances with plans to take the work elsewhere. Faye MacCalman, Shruthi Rajasekar and Reylon Yount, and Join the Din undertook residencies. In September Festival of New took place as a live event and a number of exciting new projects were shared with an appreciative audience. The Festival was filmed and shared afterwards as a digital event, primarily to reach industry colleagues who were unable to be there in person.

Archive

The Archive was back to normal public activities by the end of June 2021. In the course of the year it hosted 686 drop-in visitors as part of the Red House public offer, and 274 visitors to the exhibitions during the Festival and other special events. There were 127 reader research visits, studying a wide variety of sources. Volunteer cataloguing also resumed, with 651 volunteer hours worked. 63 new accessions entered the collection, the most significant being the Paul Campion collection of material on Kathleen Ferrier. 1,665 records were added to the catalogue; material catalogued included the papers of Heather Harper (helped by a Dundee University archive student placement), programmes from the Paul Campion Ferrier collection, and Festival photographs. The team answered 431 remote enquiries, the vast majority (94%) within the target time of five working days. The commonest types of enquirer were arts professionals (166) and academics (43); 300 (69.5%) were based in the UK, with Europe and North America equal second place with 54 (12.5%).

FINANCIAL REVIEW

GROUP FINANCIAL OVERVIEW FOR THE YEAR

In a second year dominated by the Covid-19 pandemic, and with the help of the generosity of its donors, Britten Pears Arts achieved a broadly break-even financial result, excluding asset revaluations. The Charity was the fortunate beneficiary of a £442,000 grant from the Arts Council as part of the second-round grants from the Culture Recovery Fund. This fund has supported many arts organisations across the country and has allowed the Charity to keep artistic activity alive despite lockdowns and the natural caution of audiences at in-person events. The Charity saw a positive movement in funds as a result of the revaluation of some of its assets. The Statement of Financial Activities on page 20 indicates an increase in total Group reserves of £988,000.

The total income for Britten Pears Arts increased by £2,093K, in the year to the end of March 2022, which was an increase of 22.6% on the £9,258K of income reported for the year to March 2021. The strong performance by Snape Maltings Trading Limited resulted in an increase in group trading income of £3,037K, this combined with £244K higher royalty revenue; was offset by a reduction in the Arts Council Covid Recovery Fund grant, a reduction in income legacies and a reduction in government grants for Covid-19. The income generated by charitable activities also increased by £579K in the year.

Britten Pears Arts holds a share investment portfolio which rose in value in the year to 31 March 2022, though it has fallen since, and its heritage assets in the Archive at the Red House also yielded a revaluation surplus. The Charity’s equity portfolio is held for the long term and the Charity sees its income from that portfolio as being the dividend return that it accrues. Particular years may show positive or negative revaluation surpluses. Whilst accounting regulations require that these are recognised in its accounts, they are not cash amounts (as the assets have not been sold) and the Group does not treat them as being part of their income for the year. The Charity revalues its heritage assets on a rolling basis and is required to recognise revaluation differences in its Statement of Financial Activities, but these assets are held on an indefinite basis and any surplus is not available for other use.

Though generous grants were made available to Arts organisations in the first two years of the pandemic, it is clear that the pandemic’s impact is continuing beyond those two years as audiences slowly acclimatise to a postpandemic world, in which we have to accept that continuing pandemic-related grants are unlikely to be forthcoming.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

TRUSTEES’ REPORT (continued)

Table 1 summarises Group income for the year from Note 2 and is stated in line with accounting requirements under the Charities SORP (FRS 102). It includes amounts relating to future periods while excluding grants and donations received in previous years for activities undertaken in 2021/22.

Table 1 – Group income
Arts Council England core grant
Arts Council England project grant
Trusts and Foundations
Private, including memberships and Gift Aid
Legacies
Local authority and corporate donations
Box Office and admissions
Theatre and Orchestra Tax Relief
Other charitable activities, including course fees
Trading activities, including retail and catering
Royalties
Investments, including interest, dividends and rent
Other income, including government grants for Covid-19
Total income and endowments		 2022
2022
£’000
%
1,429
12.6%
442
3.9%
464
4.1%
1,046
9.2%
52
0.5%
121
1.1%
604
5.3%
30
0.3%
220
1.9%
5,601
49.3%
1,050
9.2%
251
2.2%
41
0.4%
11,351
100.0%		 2021
2021
£’000
%
1,429
15.4%
950
10.3%
310
3.4%
550
5.9%
918
9.9%
175
1.9%
152
1.6%
-
-
123
1.3%
2,564
27.7%
806
8.7%
228
2.5%
1,053
11.4%
9,258
100.0%

Table 2 highlights Group expenditure for the year and includes costs associated with activities undertaken during 2021/22 only. More information can be found in Note 4.

Table 2 – Group expenditure
Fundraising
Trading, including retail and catering
Artistic activities
Artistic development
Archive, Exhibitions and The Red House
Community
Operations
Administration, including IT and Finance
Governance, including audit fees and legal advice
Other expenditure, incl. loss on disposal of fixed assets
Total expenditure		 2022
2022
£’000
%
327
2.9%
4,797
43.2%
1,641
14.8%
794
7.1%
307
2.8%
401
3.6%
1,487
13.3%
1,298
11.7%
62
0.6%
-
-
11,114
100.0%		 2021
2021
£’000
%
253
2.8%
4,000
44.7%
1,200
13.4%
577
6.4%
246
2.8%
203
2.3%
1,075
12.0%
1,328
14.9%
60
0.7%
-
-
8,942
100.0%

Table 3 summarises Group reserves at year end. Greater levels of detail will be found in the Statement of Financial Activities on page 20, the Balance Sheets on page 21 and notes to the accounts from page 23.

Table 3 – Group reserves
Unrestricted
Restricted
Endowment
Total reserves/net assets		 2022
2022
£’000
%
8,380
14.3%
8,364
14.2%
42,089
71.5%
58,833
100.0%		 2021
2021
£’000
%
7,865
13.6%
8,506
14.7%
41,474
71.7%
57,845
100.0%

The Group’s net assets of £58,833,000 are mainly comprised of fixed assets to the value of £53,271,000, which includes £25,454,000 of tangible fixed assets and £20,541,000 of heritage assets. £2,000 of intangible fixed assets reflects software used in the organisation. The remaining £7,274,000 represents income-generating investments designed to provide funding stability for the long-term.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

TRUSTEES’ REPORT (continued)

Unrestricted reserves increased by £515,000 which is predominantly due to the positive net impact of future funding offset by depreciation of £189,000.

Restricted reserves decreased by £142,000, predominantly due to the negative net impact of future funding of £246,000, depreciation of £34,000 offset by £138,000 revaluation gain on investments.

Endowment funds increased by £615,000, which is again represented predominantly by £235,000 revaluation gain on investments and £369,000 revaluation gain on heritage assets.

Further detail in respect of the impact of the current cost of living challenges is covered in Note 1 and the ongoing impact of the current economic environment is recognised in future forecasts, the Group and parent charity has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

BRITTEN PEARS ARTS

As a standalone entity, Britten Pears Arts’ total reserves rose £690,000 to close at £59,639,000. Unrestricted funds increased by £217,000, predominantly as a result of net positive impact of future funding of £319,000 offset by depreciation of £127,000. Restricted reserves decreased by £142,000, again largely due to the negative net impact of future funding of £246,000, depreciation of £34,000 offset by £138,000 revaluation gain on investments. Whilst as noted above endowment funds increased by £615,000 due to the revaluation gains on investments and heritage assets.

ALDEBURGH MUSIC ENDOWMENT FUND

Aldeburgh Music Endowment Fund (AMEF), a separate charity, completed the transfer of its assets and liabilities to Britten Pears Arts on 31 March 2021, and was dormant during the year to 31 March 2022. Britten Pears Arts became the sole trustee of AMEF with effect from 30 June 2022 as the previous five individual trustees tendered their resignations.

SNAPE MALTINGS TRADING LIMITED

The company, which delivers a wide range of retail and catering activities was badly affected by periods of lockdown and enforced closure in the prior year but traded well when restrictions were lifted. Turnover increased to £5,690,785 (2021: £2,564,785). The company acquired its trading businesses in 2015 and the residual balance of the goodwill created at that time was written off at 31 March 2021. The goodwill write-off has left the Company with negative reserves and whilst there was a surplus during the year the company was unable to make a distribution to Britten Pears Arts (2021: £nil).

The Company has share capital of £1,000,100 from its parent company, Britten Pears Arts, £1,000,000 of which represents preference shares. Further parent company finance is provided in the form of a loan, which stood at £1,200,000 at 31 March 2021. The Company made taxable losses in the prior year, particularly because of the write-off of the residual goodwill, and at the same time its fellow trading subsidiary, Britten Estate Limited, made profits. The Group agreed that the Company should be paid by Britten Estate Limited for use of those losses to offset that company’s taxable income. This receipt allowed £500,000 of the loan balance to Britten Pears Arts be repaid during the year and the loan stood at £700,000 at 31 March 2022.

BRITTEN ESTATE LIMITED

The company continued to promote the music of Benjamin Britten and receive income in the form of royalties. Turnover increased to £1,013,134 (2021: £794,742), with profit increasing to £974,394 (2021: £758,809). The profit generated was fully distributed to Britten Pears Arts.

FUNDS HELD AS CUSTODIAN TRUSTEE

Creditors include £34,545 (2021: £27,574) of means tested funding provided by the Department for Education to certain members of the Aldeburgh Young Musicians for the advancement of their artistic development.

PRINCIPAL FUNDING SOURCES

In this pandemic year Britten Pears Arts and its subsidiary companies have again benefitted greatly from public body grants that have helped arts organisations, and organisations more generally, to survive whilst activity has been locked down and audiences have been hugely reduced. The importance of grant funding and in particular the Arts Council’s Culture Recovery Fund is noted above and the Group is enormously grateful.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

TRUSTEES’ REPORT (continued)

Aside from the exceptional support from the Arts Council’s Culture Recovery Fund, Britten Pears Arts continued to benefit from annual core funding from Arts Council England. In June 2017, the Charity received confirmation that it had been successful with its application to receive continued core funding of £1,403,019 per annum from Arts Council England for the years 2018/19 to 2021/22. This was uplifted to £1,428,835 in 2020/21 and 2021/22. The grant was made following their prior agreement of a four-year business plan and the Trustees are enormously grateful to Arts Council England for its continued support. 2022/23 is a transition year and further long-term funding is being offered by the Arts Council from 2023/24. The Charity is very grateful to the Arts Council for continuing its funding during the transition year 2022/23. In November 2022, the Charity received confirmation that it has been successful in securing future funding of £1,428,835 for the years 2023/24 to 2025/26.

Besides revenue generated by retail and catering operations, box office and project fees, a considerable proportion of the Group’s income is philanthropic and derives from grants and private sources, including legacies. The Trustees are indebted to many generous individuals and organisations for their support of artistic activities, including: Department for Education, £75k.

The Trustees gratefully acknowledge the receipt of donations and legacies from its supporters. Approaching £1 million was notified to the charity as legacy income in the year to 31 March 2021, but as an illustration of the volatility of this income, notifications in the current year were at the much lower level of £52,000.

FUTURE PLANS

Britten Pears Arts have plans over the next twelve to eighteen months to move forward with the planning and preparation for a range of capital and maintenance works on their site at Snape, some of which were put on hold owing to the pandemic but will bring energy efficiencies and opportunities for future revenue generation. The organisation will continue to look at ways to achieve its strategic objectives, whilst remaining financially robust, within a challenging operating environment.

FINANCIAL POLICIES

Reserves Policy

In 2020/21, following the merger of Snape Maltings and the Britten Pears Foundation, the Trustees agreed a new reserves policy for the merged organisation. The Trustees concluded that they would aim that unrestricted and undesignated (free) reserves, not backed by fixed assets, should cover six months of projected charitable costs. This is a number of about £3.6m and compares to actual free reserves of £3,344,000. Although we have fallen slightly short of the target at the end of 2022, the business is actively working towards ensuring that the target is met and during the early months of 2022/23 has seen an increase in unrestricted undesignated funds.

Unrestricted General Reserves

These reserves stood at £2,802,000 at the start of the year and grew to £3,355,000 at 31 March 2022. £701,000 as a result of the impact of future funding offset by £157,000 transfer of fixed assets to the designated fixed asset fund.

Unrestricted Designated Reserves

The Trustees designate certain funds for specific use, including an Artist Fund which underpins the expansion in artist development and an Opera and Commission Fund to provide support for the development of opera, an area noted for high production costs and needing long-term planning. A designated fund is also retained for fixed assets. Further to this, a designated reserve is held for “Securing the Future”. The prime motivation for this reserve is acknowledgement of the fact that royalty income is time-limited, and provision should be made for the point at which it will start to fall away. The reserve also provides security against the potential reduction in other key income sources. This reserve will be built over a period of years, noting that the largest drop in royalty income will happen seventy years after Benjamin Britten’s death in 1976. The aim has been set to build a reserve of £15 million. At 31 March 2022 it stood at £872,000.

Restricted and Endowment Reserves

Certain reserves bear restrictions on their use imposed by donors, with some of these limiting, or barring, access to the donated capital. Details of restricted and endowment funds, including those of a permanent endowment nature, are provided in Notes 18 and 19.

Investments

The Trustees are responsible for setting the Fund’s investment policy and strategy and are authorised to make any investment they consider to be beneficial. The Trustees confirm they have remained within this power and continue to keep their investment policy and strategy under review.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

TRUSTEES’ REPORT (continued)

Investment Properties

The Trustees consider it appropriate to invest in commercial property where there is a strategic fit with the activities of the Group and such action provides a rate of return in excess of 5% of investment cost after the deduction of operational expenses. When vacant periods arise, local agents are appointed to manage new tenancy advertising and to provide advice regarding rent levels.

Market Investments

Meetings are held with investment advisors at least once during the year to monitor performance and review strategy. Key aspects of the investment policy include the achievement, within acceptable levels of risk, of at least market-rate income whilst taking a long-term view regarding capital growth. The current income target is to achieve a yield in excess of the FTSE All-Share Index yield after the deduction of management charges and for capital growth to outperform the FTSE All-Share Index over the long-term, a period defined as being not less than ten years. There is also an investment fund invested in an interest-bearing cash account with Scottish Widows.

Investment Performance

All investment properties were tenanted during the year. The target income yield of above 5% of cost was met.

KEY PERFORMANCE INDICATORS

Britten Pears Arts and its Group entities measure progress against a number of indicators set out in annual budgets and plans. It has been following SMART objectives agreed with Arts Council England particularly focussed on the Creative Case for Diversity. Non-financial indicators include public engagement and reach, the number of Festival commissions and targeting a rise in international collaborations. The main financial indicators include royalty income, box office performance, fundraising income, retail sales and investment returns. The Board reviews key performance indicators at its meetings during the year through receiving summary papers and within the Group’s management accounts.

PUBLIC BENEFIT

The Charity Commission has distilled a number of principles of public benefit which must be addressed by charities. Any benefit arising from an organisation’s activities must be to the public or a section of the public, in respect of which the opportunity to benefit must not be unduly restricted by ability to pay any fees charged; and that people in poverty must not be excluded from the opportunity to benefit.

In setting the level of ticket prices, fees, charges and concessions, the Trustees give careful consideration to the accessibility of concerts and other projects to those on low incomes. Britten Pears Arts’ pricing reflects its aim of enabling all members within our community, whatever their means, to take part in its activities. Ticket pricing is generally dependent on event costs and seat location. Ensuring wide access is a priority, resulting in ticket prices for many events starting below £10. Concessionary prices are available at most concerts.

Some events, such as Bandstand on Aldeburgh beach as part of past Aldeburgh Festivals, and Dome stage events in 2021 and 2022 are undertaken to generate public interest in the Charity’s activities and are free to all. We are fortunate to have a loyal supporter base of Friends and other supporters who are able to access a priority booking period. However, a number of tickets are held back to allow the general public the opportunity of purchasing seats at an otherwise sold-out concert.

Activities led by the Learning and Inclusion team, including working in care homes with people with dementia, are making a positive difference to the physical and mental wellbeing of the public. Some projects undertaken by the Charity require participants to pay for their travel and other costs. Financial support is made available to those in need such that, in appropriate circumstances, all costs are waived.

The Snape Maltings and Red House sites are steeped in history and are amongst Suffolk’s most visited tourist venues. The Maltings has open access and is available to the public for recreational use such as walking, although it is anticipated that visitors will also enjoy the site’s performance, catering and shopping facilities.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

TRUSTEES’ REPORT (continued)

VOLUNTEERS

Britten Pears Arts is grateful to have the support of a body of unpaid volunteers who perform important duties at events including ushering, programme selling, gallery and museum invigilation, archival cataloguing, gardening and learning support. During the year, we were pleased to have 138 volunteers (2021: 164) who worked a total of approximately 6,425 hours (2021: 3,120 hours) and which would otherwise have cost an estimated minimum wage of £57,247 (2021: £27,000). Without the loyalty and dedication of these people, the organisation would be forced to reduce its programme of events or increase concert prices.

FUNDRAISING

Sections 13 and 14 of the Charities Act 2016 address public concern about how charities raise funds. The Charity Commission has issued guidance requiring trustees to confirm that fundraising activities are compliant with standards set out in the Code of Fundraising Practice as well as those required under other guidelines and legislation covering areas such as data protection.

Monitoring fundraising activities

The Director of Development for Britten Pears Arts monitors activities undertaken by this department across all Group entities. Regular reports are provided to the Chief Executive and each Board meeting of Britten Pears Arts includes a review of activities undertaken by the Fundraising team. During the year all fundraising activities were performed by Britten Pears Arts’ staff. No professional fundraisers were used to carry out fundraising activities on behalf of the Charity or any Group entity. Consequently, no fees or commission was paid to professional fundraisers (2021: £nil).

Voluntary self-regulation

The Fundraising Regulator is an independent regulator of charitable fundraising, established to strengthen the system of regulation and preserve public trust in the not-for-profit sector. The Charity has voluntarily registered with the Fundraising Regulator and supports the aims and objectives of this organisation.

Compliance with standards

The Charity’s fundraising activity complies with all relevant legislation and regulation, including the General Data Protection Regulation, and the Privacy and Electronic Communications Regulations 2003. The Trustees are not aware of any breaches of the Code of Fundraising Practice or other standards.

Complaints relating to fundraising activities

The Charity has a policy regarding complaints received in relation to its fundraising activities. No complaints were received in the year (2021: none).

Vulnerable people, unreasonable behaviour and undue pressure

The Charity has never used telephone or doorstep methods to induce donations from members of the public and stopped sharing its data with other organisations. Existing supporters and potential donors are required to provide their prior consent to the use of their data, particularly in relation to receiving communications about future events. The Charity’s website and printed brochures encourage members of the public to participate in a number of supporter schemes or to consider leaving a legacy in their Wills. The Charity does not send unsolicited mail or use other methods of contact that are not initiated first by the prospective supporter.

EQUALITY, DIVERSITY AND INCLUSION

Britten Pears Arts has published its Equality, Diversity and Inclusion Statement and Action Plan. This work is embedded across the organisation with leadership driven by the Equality, Diversity and Inclusion working group that meets regularly, by the Executive Director and by a board trustee champion. The Group aims to continue developing accessibility and diversity in all areas, whether it be for staff, volunteers, audiences, customers, performers or participants. Its mission is to make new voices heard within the organisation, including at board level. To this end a clear programme of targets and actions has been developed, training undertaken, and the voices of those with protected characteristics listened to, taking the particular challenges of the region into account.

The programme presented by the Charity on its various stages continues to represent an extremely wide range of genres and styles delivered by a diverse group of musicians and performers. New recruitment methods have been used with the aim of diversifying the workforce. The Group is an equal opportunities employer and has appropriate policies in place. Partners include Suffolk Refugee Support, Diversity Dashboard, Inc Arts and Black Lives in Music. In addition, first interviews are offered online, together with help with travel costs for interviews in person. The Group is working to improve access to the site and to ensure access to all is extended. It is exploring how the barriers of geographical limitation, the demographic of the region and the remote locations of our sites can be overcome.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

TRUSTEES’ REPORT (continued)

ENVIRONMENT

Britten Pears Arts recognises the importance of preserving and protecting the environment and endeavours to take all reasonable steps to reduce the environmental impact of its actions. Examples of initiatives include a biomass boiler and a rainwater harvesting system which reduces the amount of mains water used in the Hoffmann Building by up to 20%. Photovoltaic panels are housed in inconspicuous positions on the Snape Maltings site, reducing the amount of electricity the organisation needs to purchase by approximately 5% while providing an income stream of approximately £7,000 each year through the Feed-in-Tariff scheme.

A number of projects are currently in the planning stage and will be built into the financial plans over the next couple of years. These include, looking at an alternative way to heat the concert hall and insulating the concert hall roof. There are also plans to move the concert hall lighting to low energy, LED alternatives. Britten Pears Arts is on a mission to reduce the number of cars being used, by promoting car sharing and the use of electric cars.

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS

The Charity has made qualifying third-party indemnity provisions for the benefit of its Trustees during the year. These provisions remain in force at the reporting date.

AUDITORS

RSM UK Audit LLP have indicated their willingness to continue in office. A resolution to re-appoint RSM UK Audit LLP as auditors for the ensuing year will be proposed at the Annual General Meeting.

In so far as the Trustees are aware:

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also the Directors of Britten Pears Arts for the purpose of company law) are responsible for preparing the Trustees’ Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Charity and the Group and of the incoming resources and application of resources, including the income and expenditure, of the Group for that year. In preparing those financial statements, Trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and which enable them to ensure the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

By order of the Trustees and signed on their behalf on 12 December 2022.

Sir Simon Robey Chair

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF BRITTEN PEARS ARTS

Opinion

We have audited the financial statements of Britten Pears Arts (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or 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.

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Britten Pears Arts Financial Statements 2021/22

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF BRITTEN PEARS ARTS (continued)

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report, or the Strategic Report included within the Trustees’ Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 16, the trustees (who are also the directors of the 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 group’s and 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 group or parent 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

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.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

Britten Pears Arts Financial Statements 2021/22

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF BRITTEN PEARS ARTS (continued)

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the parent charitable company’s governing document, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, remaining alert to any new or unusual transactions which may not be in accordance with the governing documents, inspecting correspondence with local tax authorities and evaluating advice received from external advisors.

The group audit engagement team identified the risk of management override of controls and completeness of certain income as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to any significant, unusual transactions and transactions entered into outside the normal course of business and performing tests of detail in relation to the completeness of income.

A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at http://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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Claire Sutherland (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants Blenheim House Newmarket Road Bury St Edmunds Suffolk IP33 3SB

Date

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 MARCH 2022
Unrest’d
Note
Funds
Income and endowments from:
£’000
Donations and legacies
2
3,005
Charitable activities
2
854
Other trading activities
2
6,651
Investments
2
113
Other income
2
41
Total income and endowments
10,664
Expenditure on:
Costs of fundraising
4
563
Costs of other activities (trading)
4
5,125
Charitable activities
4
4,470
Other expenditure
-
Total expenditure
10,158
Net gains/(losses) on investments
11
9
Net income/(expenditure)
515
Transfers between funds
18,19
-
Other recognised gains/(losses)
18,19
-
Net movement in funds
18,19
515
Reconciliation of funds:
Total funds brought forward
18,19
7,865
Total funds carried forward
18,19
8,380
FOR THE YEAR ENDED 31 MARCH 2021
Unrest’d
Note
Funds
Income and endowments from:
£’000
Donations and legacies
2
3,072
Charitable activities
2
275
Other trading activities
2
3,370
Investments
2
25
Other income
2
1,053
Total income and endowments
7,795
Expenditure on:
Costs of fundraising
4
511
Costs of other activities (trading)
4
4,154
Charitable activities
4
3,409
Other expenditure
-
Total expenditure
8,074
Net gains/(losses) on investments
11
300
Net income/(expenditure)
21
Transfers between funds
18,19
2,354
Other recognised gains/(losses)
18,19
-
Net movement in funds
18,19
2,375
Reconciliation of funds:
Total funds brought forward
18,19
5,490
Total funds carried forward
18,19
7,865
Rest’d
Funds
£’000

504

-

-

138

-

642

-

-

922
-

922

138

(142)

-

-

(142)
8,506

8,364

Rest’d
Funds
£’000

387

-

-

133

-

520

-

-

431
-

431

454

543

(11,443)

-

(10,900)
19,406

8,506
Endowm’t
Funds
£’000

45

-

-

-
-

45

-

-

34
-

34

235

246

-

369

615
41,474

42,089

Endowm’t
Funds
£’000

873

-

-

70
-

943

-

116

321
-

437

805

1,311

9,089

-

10,400
31,074

41,474
Total
2022
£’000

3,554

854

6,651

251
41

11,351

563

5,125

5,426
-

11,114

382

619

-

369

988
57,845
58,833

Total
2021
£’000

4,332

275

3,370

228
1,053

9,258

511

4,270

4,161
-

8,942

1,559

1,875

-

-

1,875
55,970

57,845		 Total
2021
£’000
4,332

275

3,370

228

1,053

9,258

511

4,270

4,161
-

8,942

1,559

1,875

-

-

1,875
55,970

57,845
Total
2020
£’000
3,828

1,527

6,897

279

110

12,641

383

5,393

6,162
11

11,949

(64)

628

-

99

727
55,243

55,970

The notes on pages 23 to 43 form part of these financial statements. All income relates to continuing operations.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

CONSOLIDATED AND CHARITY BALANCE SHEETS Company registration number: 980281 Charity registration number: 261383

AS AT 31 MARCH 2022

Note
Fixed assets
Intangible assets
8
Tangible assets
9
Heritage assets
10
Investments
11
Current assets
Stocks
13
Debtors
14
Cash at bank and in hand
Creditors:amounts falling due
within one year
15
Net current assets
Total assets less current liabilities
Creditors:amounts falling due
after more than one year
15
Net assets
20
The funds of the Group and Charity
Unrestricted funds
18
Restricted funds
18
Endowment funds
19
Total funds
20
Group
2022
£’000
2
25,454
20,541
7,274
53,271
485
2,342
4,908
7,735

2,160
5,575


58,846

13
58,833


8,380
8,364
42,089
58,833
Group
2021
£’000
3
25,522
20,172
6,914
52,611
416
2,891
2,794
6,101
856
5,245
57,856
11
57,845
7,865
8,506
41,474
57,845		 Charity
2022
£’000
2
25,017
20,541
9,187
54,747
-
2,524
3,697
6,221

1,323
4,898


59,645

6
59,639


9,186
8,364
42,089
59,639		 Charity
2021
£’000

3

25,087

20,172
9,327
54,589

-

2,563
2,319

4,882

516
4,366

58,955

6
58,949

8,969

8,506

41,474

58,949

Net incoming resources for the Charity were £690,000 (2021: £16,623,000). A separate Statement of Financial Activities is not presented because the Charity has taken advantage of the exemptions afforded by Section 408 of the companies Act 2006.

Approved by the Trustees, authorised for issue and signed on their behalf on 12 December 2022.

Sir Simon Robey Chair

The notes on pages 23 to 43 form part of these financial statements.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2022

Note
a) Cash flows from operating activities:
Net cash (used in)/provided by operating
activities
b
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Purchase of investments
Proceeds from sale of investments
Net cash (used in)/generated by investing
activities
Cash flows from financing activities:
Repayment of borrowing
Net cash (used in)/provided by financing
activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
c
Cash and cash equivalents at the end of the
reporting period
c
b) Reconciliation of net income/(expenditure)
to net cash flow from operating activities
Net income/(expenditure) for the reporting
period
Adjustments for:
Depreciation and amortisation charges
(Gains)/losses on heritage assets
(Gains)/losses on investments
Dividends, interest and rents from investments
(Increase)/decrease in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash (used in)/provided by operating
activities
c) Analysis of Cash and Cash Equivalents
Cash in hand
Total cash and cash equivalents
24
The notes on pages 23 to 43 form part of these financial statements.		 Group
Group
2022
2021
£’000
£’000
2,005
471
251
228
(164)
(256)
-
(14)
22
-
109
(42)
-
(783)
-
(783)
2,114
(354)
2,794
3,148
4,908
2,794
988
1,875
233
1,311
(369)
-
(382)
(1,559)
(251)
(228)
(69)
120
549
91
1,306
(1,139)
2,005
471
4,908
2,794
4,908
2,794

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

1 ACCOUNTING POLICIES

Basis of accounting

Britten Pears Arts is a charitable company domiciled and registered in England and Wales. The principal accounting policies adopted in the preparation of the financial statements are set out below. Britten Pears Arts meets the definition of a public benefit entity under FRS 102.

These accounts have been prepared under the historical cost convention as modified by the recognition of certain financial assets measured at fair value in accordance with generally accepted accounting principles, 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.

Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policy note. The financial statements are prepared in Sterling, which is the functional currency of the Charity. Monetary amounts are rounded to the nearest £’000.

Basis of consolidation

The Group’s financial statements comprise the financial statements of Britten Pears Arts, its subsidiary undertakings Snape Maltings Trading Limited, Aldeburgh Music Endowment Fund (dormant from 31 March 2021), Britten Estate Limited, and their respective subsidiaries.

Reduced disclosure

The Charitable Company has taken advantage of the exemption from disclosing the following information, as permitted by the reduced disclosure regime within FRS 102:

• Section 7 'Statement of Cash Flows' - Presentation of a Statement of Cash Flow and related notes and disclosures.

• Section 11 ‘Basic Financial Instruments’ & Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts for financial instruments measured at amortised cost or cost less impairment, interest income/expense and net gains/losses for financial instruments measured at amortised cost, loan defaults or breaches, and descriptions of hedging relationships.

Significant judgements, estimates and uncertainties recognised in the financial statements

The Charity’s aims, objectives and strategies are identified in the Trustees’ Report on page 7. The notes to these financial statements contain information relating to judgements made by the Trustees including accounting policies such as the amortisation of goodwill and depreciation of tangible fixed assets.

At 31 March 2021 Snape Maltings Trading Limited, a subsidiary of Britten Pears Arts, impaired its residual balance of goodwill amounting to £633,815 having considered the continuing uncertainties around the impact of Covid-19 on its trading business.

The Trustees review their financial plans on a regular basis and manage risks through a number of means including a risk register, budgeting, forecasting and investment planning. The Trustees consider that their plans for achieving the Group’s objectives provide a satisfactory means of mitigating uncertainties to the extent reasonably achievable.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

1 ACCOUNTING POLICIES (continued)

Going concern

The business responded well to the easing of lock down in March 2021, with customer demand relatively buoyant and a positive response to the measures put in place by the organisation to ensure that performances could take place again, with appropriate safety measures in place. During the course of 2021/22 the business benefited from the restructuring of the trading offer which was undertaken in 2020/21 and from a range of innovations, including an outdoor performing space which was used to attract visitors back to the site.

The Group and Charity have performed financial modelling for the period to 31 March 2024 which takes into consideration the impact of the current cost of living challenges on the forecast position. The key assumptions used are the return to a two week Aldeburgh Festival, rather than the three week festival, which was held in June 2022 and continuing of a full programme of artistic activity. Despite the shorter festival, a range of actions will be implemented in order to maximise the revenue from the festival, both in terms of box office receipts and wider trading revenue.

Britten Pears Arts has provided letters of support to its subsidiary companies, Snape Maltings Trading Limited and Elm Property Investments (Snape Maltings) Limited confirming that it is willing to provide any necessary financial support to ensure they are able to continue to meet their liabilities as they fall due. This includes but is not limited to not seeking repayment of any Group creditors should it be required for at least 12 months from the date of signing the financial statements. Britten Pears Arts have also confirmed that further amounts can be drawn against the £500,000 facility granted to Snape Maltings Trading Limited in April 2020. Financial projections of Britten Pears Arts support the ability of the Charity to provide this support.

Having considered all the factors noted above, the Trustees are satisfied that there are no material uncertainties in respect of going concern and that there is a reasonable expectation that the Group and Charity have adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Income

Income from grants and donations is recognised once entitlement to the funds has been confirmed, it is probable the resources will be received, and the monetary value can be measured with sufficient reliability.

Income is deferred where a donor has imposed performance conditions that must be met before there is unconditional entitlement to the funds. Income is not recognised for legacies subject to a life interest.

Grants and donations received of a capital nature are held in a restricted fund, or otherwise depending on the donor’s conditions, and depreciation of the relevant assets is charged to the appropriate fund. Donations of property are professionally valued and accounted for at the time ownership passes to the Charity. Donations or legacies in the form of tradable securities are recognised at market value on the date control is passed.

Income generated from the sale of concert tickets, admissions, goods and services is stated net of Value Added Tax. Box office receipts and other income received in advance of the date of performance is deferred where it does not meet the income recognition criteria noted under the Charities SORP (FRS 102).

Royalty income is accounted for when receipt may be anticipated with reasonable probability. Rental income accounted for under other trading activities relates to income earned from letting properties that are also utilised by the Charity in delivering charitable activities. Investment income is accounted for on an accruals basis.

Government grants

Income from government grants, whether 'capital' grants or 'revenue' grants, is recognised when the Charitable Group has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably.

Expenditure

Expenditure is included on an accruals basis and allocated, along with any associated irrecoverable Value Added Tax, to the appropriate heading in the accounts.

Costs of fundraising

This is the cost of Britten Pears Arts’ fundraising team, who generate income from trusts and foundations, individuals and the business sector.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

1 ACCOUNTING POLICIES (continued)

Costs of other activities (trading):

This includes retail and catering expenditure incurred by Snape Maltings Trading Limited, and also service charges, repairs and legal fees associated with the creation and agreement of leases with shop tenants.

Charitable activities:

Expenditure incurred to meet charitable aims and objectives, including artistic activity within the Concert Hall, the Red House and the archive and other venues, artistic development through the Britten–Pears Young Artist Programme, Aldeburgh Residencies, Aldeburgh Young Musicians and Learning and Inclusion’s outreach into the community.

Support costs:

Support costs represent the central services of the Group, including human resources, finance and information technology, and costs of maintaining facilities such as repairs, insurance, business rates and utilities. Support costs have been allocated across the Charity’s activities as indicated in Note 4.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to expenditure on a straight-line basis over the length of the lease.

Intangible fixed assets

Intangible assets comprise capitalised computer software and goodwill. Capitalised computer software is amortised over its useful life, which is usually three to five years.

Goodwill represents the difference between consideration given and the fair value of separable net assets at the date of acquisition. The useful economic life was initially assessed as 10 years from the date of acquisition, which was supported by projected earnings over that period. During the prior year, the Trustees reviewed the carrying value of goodwill and its remaining useful economic life, and determined that the remaining balance should be written off as at 31 March 2021 given the impact of the pandemic.

Tangible fixed assets

Tangible fixed assets costing up to £500 are not capitalised and are written off in the year of purchase. Works of art are not subject to regular professional valuation due to the potential for the periodic rise and fall in the value of works of art as the popularity of their creator changes from one period to another.

Depreciation

Tangible fixed assets are stated at historic or deemed cost following the adoption of FRS 102, less accumulated depreciation. Depreciation is calculated to write off the cost of tangible fixed assets over the period of their expected useful life as follows:

Land No depreciation.
Freehold property 50 years straight-line basis, down to residual value.
Freehold property improvements Up to 50 years straight-line basis depending on the expected life
of the asset, down to residual value.
Long leasehold property Up to 50 years straight-line basis depending on the period of the
improvements lease, down to residual value.
Short leasehold property Up to 50 years straight-line basis depending on the period of the
improvements lease.
Motor vehicles Two to four years straight-line basis.
Office furniture and computers 4% to 50% per annum straight-line basis.
Plant and equipment 10% to 20% per annum straight-line basis.
Musical instruments No depreciation is provided where, in the opinion of the Trustees,
the estimated residual value is in excess of the net book value.
Otherwise: 10 years straight-line basis.
Works of art No depreciation as their residual valuation is considered to be at
least equal to their holding value.

A revised estimate of the residual value of freehold and long leasehold property was made in 2019/20 and this has been set at 80% of cost, given the conservation requirements placed upon the Charity’s buildings.

Impairment reviews

Impairment reviews are undertaken when indicators highlight that such reviews are required. Where an asset’s holding value is considered to be impaired, the loss is taken through the Statement of Financial Activities.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

1 ACCOUNTING POLICIES (continued)

Heritage assets

Previously acquired heritage assets are recorded in the financial statements at market value. Additions to heritage assets since the last valuation are recorded at cost. The Trustees have adopted a policy of revaluation and as such the value of heritage assets is considered by the Trustees annually and is subject to a full professional valuation every five years. The Trustees consider that the depreciation charge and accumulated depreciation on manuscripts and other archival material is immaterial due to the extended useful economic life of these assets.

Investment properties

The Companies Act 2006 requires all properties to be depreciated. However, this requirement conflicts with the generally accepted accounting principle set out in FRS 102. The Trustees consider that, because investment properties are not held for consumption but for their investment potential, to depreciate them would not give a true and fair view of the Charity’s financial position. As such these properties are carried at market value at each reporting date. Market value is assessed at regular intervals, or sooner in volatile economic circumstances, using a professional valuer. Surpluses or deficits arising on revaluation are charged or credited through the Statement of Financial Activities.

Listed investments

Listed investments are valued at bid price. Differences arising on market value are taken to the Statement of Financial Activities. Realised gains and losses are recognised when the investment is disposed of, unrealised gains and losses are recognised annually.

Investments in subsidiaries

Investments in subsidiaries are held in the accounts of parent entities at the value of purchased share capital and are eliminated on consolidation.

Stocks

Stocks are stated at the lower of cost and net realisable value. Obsolete items carry a corresponding provision.

Financial instruments

The Charity has elected to apply the provisions of Section 11 “Basic Financial Instruments” and Section 12 “Other Financial Instruments Issues” of FRS 102 to all of its financial instruments. Financial instruments are recognised when the Charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Trade, Group and other debtors

Trade, Group and other debtors (including accrued income) which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. Where the arrangement with a debtor constitutes a financing transaction, the debtor is initially measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument and subsequently measured at amortised cost.

A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in the Statement of Financial Activities for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in the Statement of Financial Activities.

Trade, Group and other creditors

Trade, Group and other creditors (including accruals) payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being transaction price less any amounts settled. Where the arrangement with a creditor constitutes a financing transaction, the creditor is initially measured at the present value of future payments discounted at a market rate of interest for a similar instrument and subsequently measured at amortised cost.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

2 INCOME AND ENDOWMENTS

Donations and legacies:
Arts Council England core grant
Arts Council England project grant
Local authority, public and EU grants
Trusts and foundations
Corporate
Private individuals
Gift Aid recovered on private individual donations
Membership subscriptions
Legacies
Charitable activities:
Box Office and admissions
Box Office commission and processing charges
Co-production income
Course and audition fees
Hire, recording and other site use for artistic purposes
Theatre and Orchestra Tax Relief
Programme books and other
Other trading activities:
Trading turnover, including retail, catering, advertising and sponsorship
Royalties
Investments:
Dividends and interest received on bank deposits and investments
Rents received including service charges
Other income:
Government grants for Covid-19
Total income and endowments		 2022
£’000

1,429
442
115
464
6
796
174
76
52
3,554
603
1
-
93
68
30
59
854
5,601
1,050
6,651
133
118
251
41
41
11,351		 2021
£’000
1,429
950
144
310
32
372
97
81
917
4,332
152
-
4
70
4
-
45
275
2,564
806
3,370
129
99
228
1,053
1,053
9,258

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

3 NET INCOME FROM ACTIVITIES OF TRADING SUBSIDIARIES

The Charity has two active wholly owned trading subsidiaries which are consolidated into the Group’s accounts, Snape Maltings Trading Limited (Company Number 1519527) and Britten Estate Limited (Company Number 2063909). The principal activities of both companies are highlighted on page 4.

A summary of Snape Maltings Trading Limited’s result is given below and is taken from the audited accounts of that company and therefore includes transactions undertaken with other Group entities which are eliminated on consolidation of the Group’s financial statements. The company generated a profit before the amortisation of goodwill of £301,000 (2021: loss of £142,000). The Company does not have distributable reserves meaning that there was no Gift Aid distribution to Britten Pears Arts (2021: nil).

Turnover
Cost of sales
Gross profit
Administrative costs excluding amortisation of goodwill
Other operating income
Profit/(loss) before amortisation of goodwill
Amortisation of goodwill
Profit/(loss) before taxation
Tax on profit/(loss)
Profit/(loss) after taxation and retained profit/(loss) for
the period		 2022
£’000
5,691
(2,579)
3,112
(2,857)
46
301
-
301
-
301
2021

£’000

2,565
(1,162)

1,403

(2,224)

679

(142)

(792)

(934)

664

(270)

A summary of Britten Estate Limited’s result is given below and is taken from the audited accounts of that company and therefore includes transactions undertaken with other Group entities which are eliminated on consolidation of the Group’s financial statements. The company generated a profit before taxation of £974,000 (2021: £759,000). A Gift Aid distribution to Britten Pears Arts was made for this amount. In 2020/21 the company’s profit was paid to Snape Maltings Trading Limited in return for surrender of Snape Maltings Trading Limited’s tax losses.

Turnover
Cost of sales
Gross profit
Administrative costs
Profit before taxation
Tax on profit
Profit after taxation and retained profit for the period		 2022
£’000
1,013
-
1,013
(39)
974
-
974
2021

£’000

795
-

795

(36)

759

(759)

-

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

4 EXPENDITURE

EXPENDITURE
Costs of fundraising
Costs of other activities (trading)
Charitable activities:
Artistic activities
Artistic development
Archive, Exhibitions and The
Red House
Community


Total resources expended		 Direct
costs
£’000
327
4,797
1,641
794
307
401
3,143
8,267		 Support
costs
£’000

236

328

1,185

591

219

288		 Total
2022
£’000

563

5,125

2,826

1,385

526

689

5,426

11,114		 Total
2021
£’000
511
4,270
2,205
1,064
498
394

2,283		 4,161

2,847		 8,942

Direct costs relate to expenditure required to undertake fundraising and charitable activities and include staff costs for the relevant teams and directly attributable expenditure such as trading cost of sales and overheads.

Analysis of support costs:
Type of cost:
Basis of
allocation
Operations and site running
Direct costs/time
spent
Administration, IT and finance Direct costs/time
spent
Governance
Direct costs/time
spent		 Charitable
activities
£’000
1,276
951
56
2,283		 Costs of
fundraising
£’000
132
98
6
236		 Costs of
other
activities

£’000

79

249

-		 Total
2022
Total
2021
£’000
£’000

1,487
1,075

1,298
1,328

62
60

2,847
2,463

328
2,847

5 NET INCOME FOR THE PERIOD

NET INCOME FOR THE PERIOD
2022 2021
This is stated after (crediting)/charging: £’000 £’000
Government grants (41) (1,053)
Stock provisions 6 (7)
Depreciation 232 512
Amortisation of intangible fixed assets 1 799
Auditors’ remuneration – statutory audit (Charity only) 35 31
– statutory audit (other Group entities) 15 18
– tax compliance 19 11
– tax and other advisory services 8 28
Rentals paid under operating leases - 7
Loss on disposal of fixed assets - -

The Charity was grateful to receive the assistance of 138 volunteer supporters who undertook a range of duties including ushering, programme selling, gallery and museum invigilation, archival cataloguing, gardening and learning support. Volunteers, many of whom are long serving, play an important part in the smooth running of events held on site and at external locations.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

6
STAFF COSTS




Wages and salaries
Social security costs
Pension contributions
Other benefits
 Raising Funds
Fund-
Trading
raising
Activities
£’000
£’000
271
1,448
29
89
9
28
1
14
310
1,579
Charitable
Activities
£’000

960

90

40

1		 Support
Costs
£’000

1,236

124

57

60
Total
2022
£’000

3,915

332

134

76

4,457		 Total
2021
£’000

3,630

293

146

42
310 1,091
1,477
4,111

Termination payments in the year amounted to £16,636 (2021: £193,634). No funding was received relating to the payments.

Average number of employees during the year:
Raising funds, including fundraising and trading activities
Directly involved in furtherance of the Charity’s activities
Operations and administrative support
Average number of full-time equivalent employees during the year
The number of employees whose emoluments amounted to over £60,000 in
£60,001 to £70,000
£70,001 to £80,000
£90,001 to £100,000
£170,001 to £180,000
£190,001 to £200,000		 2022
2021
116
114
44
42
33
30
193
186
144
132
the year was as follows:
2022
2021
1
-
1
3
2
2
1
-
-
1		 2021
114
42
30
186
132
7
CHIEF EXECUTIVE, KEY MANAGEMENT PERSONNEL AND TRUSTEE EMOLUMENTS
2022
Chief Executive:
£’000
Salary
178
Pension
11
Total
189
Business expenses
£9,651		 2021
£’000
173
10
183
£611

The authority to make payments to Trustees is contained within the Charity’s Articles of Association. The power to appoint the Chief Executive as a Trustee was confirmed by the Charity Commission. Key management personnel for the year are identified on page 5 of the Trustees’ Report. Remuneration and benefits, which include salary, pension and employer’s National Insurance, received by key management personnel for the year totalled £512,000 (2021: £495,000). Other than the Chief Executive, who received remuneration and reimbursement of his business expenses, no expenses were paid by the Charity to its Trustees during the year (2021: £nil).

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

8 INTANGIBLE FIXED ASSETS

Goodwill
£’000
Cost:
At 1 April 2021
2,113
Additions
-
At 31 March 2022
2,113
Amortisation:
At 1 April 2021
2,113
Charge
-
At 31 March 2022
2,113
Net book value:
At 31 March 2022
-
At 31 March 2021
-
9
TANGIBLE FIXED ASSETS
GROUP



Cost:
1 April 2021
Additions
Disposals
31 March 2022
Depreciation:
1 April 2021
Charge
Disposals

31 March 2022
Net book value:
31 March 2022
31 March 2021		 Group
Software
£’000
75
-
75
72
1
73
2
3



Freehold
land and
buildings
£’000
30,023
25
-		 Total

£’000

2,188
-
2,188
2,185
1
2,186
2
3




Musical
instruments
Motor and works
vehicles
of art
£’000
£’000

83
579

11
7

-
-
94
586

73
268

6
6
-
-
79
274
15
312

10
311		 Total

£’000

2,188
-
2,188
2,185
1
2,186
2
3




Musical
instruments
Motor and works
vehicles
of art
£’000
£’000

83
579

11
7

-
-
94
586

73
268

6
6
-
-
79
274
15
312

10
311		 Charity
Software
Total
£’000
£’000
75
75
-
-
75
75
72
72
1
1
73
73
2
2
3
3




Furniture,
plant and
equipment
Total
£’000
£’000

2,056
32,741

121
164

-
-
2,177
32,905

1,637
7,219

161
232
-
-

1,798
7,451

379
25,454

419
25,522		 Charity
Software
Total
£’000
£’000
75
75
-
-
75
75
72
72
1
1
73
73
2
2
3
3




Furniture,
plant and
equipment
Total
£’000
£’000

2,056
32,741

121
164

-
-
2,177
32,905

1,637
7,219

161
232
-
-

1,798
7,451

379
25,454

419
25,522
75

72
1
73
2
3










Total
£’000

32,741

164

-
30,048 94
586
32,905
5,241
59
-
73

6
-
268

6
-
7,219

232
-
5,300 79 274 7,451
24,748 15 312 25,454
24,782
10		 311 25,522

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

9 TANGIBLE FIXED ASSETS (continued)

CHARITY

CHARITY
Cost:
1 April 2021
Additions
Disposals
31 March 2022
Depreciation:
1 April 2021
Charge
Disposals
31 March 2022
Net book value:
31 March 2022
31 March 2021
Freehold
Property
£’000

29,254
5
-		 Leasehold
Property
Improve’ts
£’000


409

-

-		 Motor
vehicles
£’000

71

-

-		 Musical
instrum’ts
£’000

579

7

-		 Furniture,
plant and
equipment
£’000

1,776

89

-		 Total
£’000

32,089

101

-
29,259 409 71
586		 1,865 32,190
5,180
31
-
12

16

-
68

3

-
268

6

-
1,474

115

-
7,002

171

-
5,211
28		 71
274
1,589		 7,173
24,048 381
-
312
276		 25,017
24,074
397
3		 311
302
25,087

All fixed assets are used in the furtherance of the Group’s activities.

The value of land within freehold land and buildings not depreciated at 31 March 2022 was £2,811,286 (2021: £2,811,286).

In September 2016, Aldeburgh Music Endowment Fund purchased the freehold of Bridge House, Snape, and approximately one-fifth of an acre of floodplain grazing marsh land on the north bank of the River Alde at Snape Maltings. The acquisition of Bridge House, which is located immediately adjacent to the Snape Maltings complex, allows Britten Pears Arts’ artist accommodation costs to reduce while increasing Snape Maltings Trading Limited’s opportunity to earn holiday rental income.

Musical instruments and works of art include some assets which could be considered to be of historical or artistic significance. However, these are not maintained principally for their contribution to knowledge and culture and therefore have not been classified as heritage assets.

Under FRS 102 transition arrangements, the Trustees considered it appropriate to regard the valuation of works of art by Bonhams in 2005 as the deemed cost for these assets. Due to the potential for the periodic rise and fall in the value of works of art as the popularity of their creators changes, the Trustees consider it to be inappropriate to undertake a policy to revalue these assets.

As a requirement of receiving grant funding from Arts Council England in support of the Snape Maltings Development Plan and the purchase of freehold land and buildings at Snape Maltings, the Trustees have entered into a guarantee and legal charge over its land and a fixed and floating security over its assets.

Following an examination of the Group’s tangible fixed assets, which included consideration of the use of land and buildings available to Group members, the Trustees found no indicators that require a review for impairment.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

10 HERITAGE ASSETS

GROUP AND CHARITY

GROUP AND CHARITY



Carrying amount at 1 April 2021
Additions
Revaluation
Carrying amount at 31 March 2022		 Land and
buildings
£’000
3,950
-
-
3,950		 Art
Objects
£’000

6,207

-

-		 Red House
Contents
£’000

399

-

-
Archives
£’000

9,616

-

369
9,985		 Total
£’000

20,172

-
369
6,207
399		 20,541

Revaluation of assets

Heritage Assets were professionally valued as follows:

Date of valuation Asset Class Valuer Value £
January 2022 Archives Francesca Franchi 9,985,142
28 February 2018 Land and buildings Peter Watson FRICS Flick & Son, 3,950,000
Chartered Surveyors
27 March 2015 Art Objects Rohan McCulloch – St Georges Valuations 6,206,890
31 March 2020 Red House Contents Gary Barfoot for Clarke and Simpson 399,096

The historical cost of heritage assets as at 31 March 2022 is as follows:

Land and buildings
Art Objects
Red House Contents
Archives		 2022
£’000
3,329
1,631
78
4,548
9,586		 2021
£’000
3,329
1,631
78
4,548
9,586

Heritage assets are held for the following purposes:

Five year financial summary of heritage asset transactions

31/03/22 31/03/21 31/03/20 31/03/19 31/03/18
£ £ £ £ £
Purchases and donations
Archives - - 167,000 10,050 7,000

There have been no disposals in any period covered by the table above. There have been no further purchases or donations other than those detailed above.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

11
INVESTMENTS
Market value at beginning of year
Additions
AMEF donation
Disposals
Unrealised gain/(loss) on revaluation
Market value at end of year
Investment in subsidiary undertakings at cost
Historic or deemed historic cost at end of year
Investments are represented by:
Equities and other market investments
Properties
Subsidiary undertakings
Market value or cost at end of year
Equities and other market investments
Properties
Subsidiary undertakings
Historic or deemed historic cost at end of year		 Group
2022
2021
£’000
£’000
6,914
5,341
-
14
-
-
(22)
-
382
1,559
7,274
6,914
-
-

7,274
6,914
3,969
3,991

Group
2022
2021
£’000
£’000
4,839
4,479
2,435
2,435
-
-
7,274
6,914
2,404
2,426
1,565
1,565
-
-
3,969
3,991		 Charity
2022
2021
£’000
£’000
6,696
851
-
-
-
5,545
(22)
-
382
300
7,056
6,696
2,131
2,631
9,187
9,327
6,100
6,622

Charity
2022
2021
£’000
£’000
4,839
4,479
2,217
2,217
2,131
2,631
9,187
9,327
2,404
2,426
1,565
1,565
2,131
2,631
6,100
6,622

The Trustees hold market and property investments for the long-term and have no plans to liquidate these assets. In March 2021, investment properties at Snape Maltings were valued by Fenn Wright, Chartered Surveyors, the previous valuation was in August 2016 and assigned a value as at the date of transition to FRS102, 1 April 2014.

Subsidiary undertakings:

The Charity is supported by its subsidiary undertakings, holding all the issued share capital of those companies in the form of Ordinary shares and Redeemable preference shares:

Snape Maltings Trading Limited (Company Number 1519527) % held
100		 Aggregate
Capital and
Reserves
£’000
162

Snape Maltings Trading Limited is incorporated in England and Wales and donates any distributable profits under the Gift Aid scheme to Britten Pears Arts in support of its charitable objects. The Company’s results are included in these consolidated financial statements and its financial statements are separately filed at Companies House.

Britten Estate Limited (Company Number 2063909) % held
100		 Aggregate
Capital and
Reserves
£’000
21

Britten Estate Limited is incorporated in England and Wales. In 2021/22 the Company donated any distributable profits under the Gift Aid scheme to Britten Pears Arts in support of its charitable objectives. In 2020/21 the Company used its distributable profits to pay its fellow subsidiary, Snape Maltings Trading Limited, for use of that company’s taxable losses. The company’s results are included in these consolidated financial statements and its financial statements are separately filed at Companies House.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

12 FINANCIAL INSTRUMENTS

The carrying amount of the Group’s and Charity’s financial instruments at 31 March were:

Financial assets measured at fair value
13
STOCKS
Goods held for resale
Fuel
14
DEBTORS
Trade debtors
Amounts due from Group undertakings
Prepayments and accrued income
Other current debtors
15
CREDITORS
Amounts falling due within one year:
Trade creditors
Other taxes and Social Security
Other creditors
Accruals and deferred income		 Group
2022
2021
£’000
£’000
4,839
4,479
Group
2022
2021
£’000
£’000
472
403
13
13
485
416
Group
Group
2022
2021
£’000
£’000
344
224
-
-
1,970
2,343
28
324
2,342
2,891
Group
Group
2022
2021
£’000
£’000
553
112
216
81
223
185
1,168
478
2,160
856		 Charity
2022
2021
£’000
£’000
4,839
4,479

Charity
2022
2021
£’000
£’000
-
-
-
-
-
-
Charity
Charity
2022
2021
£’000
£’000
177
83
848
460
1,474
1,712
25
308
2,524
2,563
Charity
Charity
2022
2021
£’000
£’000
318
80
47
63
216
185
742
188
1,323
516		 Charity
2022
2021
£’000
£’000
4,839
4,479

Charity
2022
2021
£’000
£’000
-
-
-
-
-
-
Charity
Charity
2022
2021
£’000
£’000
177
83
848
460
1,474
1,712
25
308
2,524
2,563
Charity
Charity
2022
2021
£’000
£’000
318
80
47
63
216
185
742
188
1,323
516
2,563
Charity

2021
£’000
80
63
185
188
516

Included within other creditors are amounts held as agent of £34,545 (2021: £27,574) which is means tested funding provided by the Department for Education to certain members of the Aldeburgh Young Musicians for the advancement of their artistic development. Funds are held by the Charity in a separate balance sheet control account, are subject to an annual internal review and are available for examination by the Department for Education.

Amounts falling due after more than one year:
Rent deposit held as security
Deferred tax		 Group
2022
£’000
6
7
13		 Group

2021
£’000
6
5
11		 Charity
2022
£’000
6
-
6		 Charity

2021
£’000
6
-
6

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

16
DEFERRED TAX
Provision for deferred tax has been made as
follows:
Deferred tax liabilities
Deferred tax assets
Net position
Movements in the year:
Balance at 1 April
Additional provisions made in year
Balance at 31 March
Deferred tax is comprised as follows:
Capital gains		 Group
2022
£’000
7
-
7
5
2
7

7
7		 Group
2021
£’000
5
-
5




5
5		 Charity
2022
£’000
-
-
-
-
-
-
-
-		 Charity

2021
£’000
-
-
-


-
-

Deferred tax is not recognised in respect of losses and other deductions of £202,253 (2021: £213,429) as it is not probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

17 TAXATION

Snape Maltings Trading Limited currently has a retained deficit due to the amortisation of goodwill and therefore has no liability to pay UK Corporation Tax. Other members of the Group have no, or minimal, liability for UK taxation due to their charitable status or lack of retained profits.

18 UNRESTRICTED AND RESTRICTED FUNDS

GROUP CURRENT YEAR
Unrestricted funds:
General
Designated Artist Fund
Designated Opera and Comm’n Fund
Designated fixed assets
Securing the Future fund
Other designated funds
Total designated funds
Total unrestricted funds
Restricted funds:
Basil Coleman Memorial Fund
Other income reserves
BPYAP and other activities
Restricted fixed assets
Total restricted funds		 Balance
1 April
2021
£’000
2,802
175
160
3,761
867
100
5,063
7,865
1,546
667
536
5,757
8,506

Income

£’000

10,659

-

-

-

5

-

5

10,664

40

499

100

3
642
Expend.

£’000

(9,969)

-

-

(189)

-
-		 Investm’t
Gains/
(losses)

£’000

9

-

-

-

-
-

-

9

118

-

20

-
138


Transfers

£’000

(157)

-

-

157

-
-

157

-

-

-

-
-
-		 Balance
31 March

2022

£’000

3,344

175

160

3,729

872
100

(189)
5,036
(10,158) 8,380

-

(628)

(260)

(34)
1,704

538

396
5,726

(922)
8,364

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

18 UNRESTRICTED AND RESTRICTED FUNDS (continued)

GROUP PRIOR YEAR
Unrestricted funds:
General
Designated Artist Fund
Designated Opera and Comm’n Fund
Designated fixed assets
Securing the Future fund
Other designated funds
Total designated funds
Total unrestricted funds
Restricted funds:
Basil Coleman Memorial Fund
Other income reserves
BPYAP and other activities
Restricted fixed assets
Total restricted funds		 Balance
1 April
2020
£’000
2,771
175
160
1,417
867
100
2,719
5,490
1,232
970
364
16,840
19,406

Income

£’000

7,795

-

-

-

-

-

-

7,795

40

240

137

103
520
Expend.

£’000

(8,074)

-

-

-

-
-		 Investm’t
Gains/
(losses)

£’000

-

-

-

300

-
-

300

300

274

-

35

145
454


Transfers

£’000

310

-

-

2,044

-
-

2,044

2,354

-

(152)

-

(11,291)

(11,443)		 Balance
31 March

2021

£’000

2,802

175

160

3,761

867
100

-
5,063

(8,074)
7,865

-

(391)

-

(40)
1,546

667

536
5,757
(431) 8,506

Transfers between funds in the prior year represent consolidation adjustments required following the differing treatment of funds between Group entities.

CHARITY CURRENT YEAR
Unrestricted funds:
General
Designated Artist Fund
Designated Opera and Commission
Fund
Designated fixed assets
Securing the Future fund
Other designated income funds
Total designated funds
Total unrestricted funds
Restricted funds:
Basil Coleman Memorial Fund
Other income reserves
Britten–Pears Young Artist Programme
Restricted fixed assets
Total restricted funds		 Balance
1 April
2021
£’000
4,341
175
160
3,326
867
100
4,628
8,969
1,546
667
535
5,758
8,506		 Income
£’000
5,665
-
-
-
5
-
5
5,670
40
499
100
3
642
Expend.

£’000

(5,335)

-

-

(127)

-
-		 Investm’t
Gains/

(losses)

£’000

9

-

-

-

-
-

-
9

118

-

20

-
138


Transfers

£’000

(94)

-

-

94

-
-

94
-

-

-

-
-
-		 Balance
31 March

2022

£’000

4,586

175

160

3,293

872
100

(127)
4,600
(5,462) 9,186

-

(628)

(260)

(34)
1,704

538

395
5,727

(922)		 8,364

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

18 UNRESTRICTED AND RESTRICTED FUNDS (continued)

CHARITY PRIOR YEAR
Unrestricted funds:
General
Designated Artist Fund
Designated Opera and Commission
Fund
Designated fixed assets
Securing the Future fund
Other designated income funds
Total designated funds
Total unrestricted funds
Restricted funds:
Basil Coleman Memorial Fund
Other income reserves
Britten–Pears Young Artist Programme
Restricted fixed assets
Total restricted funds		 Balance
1 April
2020
£’000
3,640
175
160
1,417
867
100
2,719
6,359
-
970
209
11,431
12,610		 Income
£’000
6,700
-
-
-
-
-
-
6,700
1,546
240
326
5,637
7,749
Expend.

£’000

(4,283)

-

-

-

-
-		 Investm’t
Gains/

(losses)

£’000

-

-

-

300

-
-

300
300

-

-

-

-
-


Transfers

£’000

(1,716)

-

-

1,609

-
-

1,609
(107)

-

(153)

-
(11,290)
(11,443)		 Balance
31 March

2021

£’000

4,341

175

160

3,326

867
100

-
4,628
(4,283) 8,969

-

(390)

-

(20)
1,546

667

535

5,758
(410) 8,506

General unrestricted funds are available for use as Trustees consider appropriate. Transfer out of £157,000 represents the transfer to the designated fixed asset fund to reflect the net book value of tangible fixed assets not represented by restricted or endowment funds. In the prior year transfers in of £310,000 predominantly represents the transfer in of £2,521,000 from the general expendable endowment reserve within Aldeburgh Music Endowment Fund on its transfer to Britten Pears Arts to align the treatment of unrestricted reserves offset by £2,044,000 of transfers to the designated fixed asset fund to reflect the net book value of tangible fixed assets not represented by restricted or endowment funds.

The designated Artist Fund was created to underpin the expansion in artist development. With £175,000 already in this reserve the Trustees believe it holds sufficient funds to meet its aims.

The designated Opera and Commission Fund provides support for the development of opera, an area noted for high production costs. The target amount for this reserve is £200,000.

The designated fixed asset funds represent the net book value of non-heritage fixed assets and investment properties, formerly held by the Britten Pears Foundation, at the end of the year.

The Securing the Future fund is being built in anticipation of the time at which royalty income will fall away, but also provides security against the potential reduction in other key income sources.

Other designated funds represent a £100,000 capital fund, to maintain the fabric at the Red House site.

Restricted funds represent grants, donations and legacies which must be used as donors have directed.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

19
ENDOWMENT FUNDS
GROUP
Expendable – Designated
Expendable – Catalyst
Total expendable
endowment
Permanent endowment
Total Endowment Funds
Expendable – General
Expendable – Designated
Expendable – Catalyst
Total expendable
endowment
Permanent endowment
Total Endowment Funds
CHARITY
Expendable – Designated
Expendable – Catalyst
Total expendable endowment
Permanent endowment
Total Endowment Funds
Expendable – Designated
Expendable – Catalyst
Total expendable endowment
Permanent endowment
Total Endowment Funds		 Balance
Balance
1 April
Invest.
Other
31 March
2021
Income
Expend.
Gains
Transfers
Gains
2022
£’000
£’000
£’000
£’000
£’000
£’000
£’000
15,148
45
(31)
-
-
-
15,162
2,879
-
-
218
-
-
3,097
18,027
45
(31)
218
-
-
18,259
23,447
-
(3)
17
-
369
23,830
41,474
45
(34)
235
-
369
42,089
Balance
Balance
1 April
Invest.
Other
31 March
2020
Income
Expend.
Gains
Transfers
Gains
2021
£’000
£’000
£’000
£’000
£’000
£’000
£’000
2,761
70
(431)
61
(2,461)
-
-
7,050
873
(6)
8
7,223
-
15,148
2,181
-
-
698
-
-
2,879
11,992
943
(437)
767
4,762
-
18,027
19,082
-
-
38
4,327
-
23,447
31,074
943
(437)
805
9,089
-
41,474
Balance
Balance
1 April
Invest.
Other
31 March
2021
Income
Expend
Gains
Transfers
Gains
2022
£’000
£’000
£’000
£’000
£’000
£’000
£’000
15,148
45
(31)
-
-
-
15,162
2,879
-
-
218
-
-
3,097
18,027
45
(31)
218
-
-
18,259
23,447
-
(3)
17
-
369
23,830
41,474
45
(34)
235
-
369
42,089
Balance
Balance
1 April
Invest.
Other
31 March
2020
Income
Expend
Gains
Transfers
Gains
2021
£’000
£’000
£’000
£’000
£’000
£’000
£’000
4,435
3,490
-
-
7,223
-
15,148
-
2,879
-
-
-
-
2,879
4,435
6,369
-
-
7,223
-
18,027
18,922
198
-
-
4,327
-
23,447
23,357
6,567
-
-
11,550
-
41,474

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

19 ENDOWMENT FUNDS (continued)

Expendable – Designated

The £7,223,000 transfer into this reserve in 2020/21 represents the cost of the Britten Pears and Hoffman buildings, previously held as restricted fixed assets, which have been added to expendable endowment on transfer from Aldeburgh Music Endowment Fund to Britten Pears Arts as part of the group reorganisation.

Expendable – Catalyst

In 2012 Arts Council England awarded a grant under the Catalyst Arts: endowments scheme. New funds totalling £1,000,000 were matched-funded by Arts Council England to create a new endowment. The grant was made subject to various conditions, including the Trustees signing a Declaration of Trust which includes a provision that the capital will be invested for a minimum of 25 years, after which it will become unrestricted.

Investment income generated by this expendable endowment may only be used to provide additional financial support to Britten Pears Arts for talent development, maximising the legacy of the Britten Centenary, developing new opera, supporting the Aldeburgh Festival and the digital distribution of music.

Permanent endowment

Permanent endowment reserves are comprised of funds, predominantly heritage assets, whose capital may not be spent. The heritage asset funds represent the net book value of the assets at the end of the year, and comprise of The Archive Collection, The Red House and Outbuildings, The Red House Collection and the Snape Maltings Concert Hall.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

20 ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

Unrest’d
Fund balances at 31 March 2022 are represented by:
£’000
Intangible assets
2
Tangible assets
3,729
Heritage assets
-
Investments
1,482
Net current assets
3,180
Creditors falling due after more than one year
(13)
8,380
Unrest’d
Fund balances at 31 March 2021 are represented by:
£’000
Intangible assets
3
Tangible assets
3,761
Heritage assets
-
Investments
1,475
Net current assets
2,631
Creditors falling due after more than one year
(5)
7,865
ANALYSIS OF CHARITY NET ASSETS BETWEEN FUNDS
Unrest’d
Fund balances at 31 March 2022 are represented by:
£’000
Intangible fixed assets
2
Tangible fixed assets
3,292
Heritage assets
-
Investments
2,698
Net current assets
2,500
Long term asset
700
Creditors falling due after more than one year
(6)
9,186
Unrest’d
Fund balances at 31 March 2021 are represented by:
£’000
Intangible fixed assets
3
Tangible fixed assets
3,326
Heritage assets
-
Investments
2,688
Net current assets
1,752
Long term asset
1,200
Creditors falling due after more than one year
-
8,969
Rest’d

£’000

-

4,989

-

2,479

896

-

8,364

Rest’d

£’000

-

5,016

-

2,339

1,157

(6)

8,506

Rest’d

£’000

-

4,989

-

2,476

899

-

-

8,364

Rest’d

£’000

-

5,016

-

2,339

1,157

-
(6)

8,506		 Endow’t

£’000

-

16,736

20,541

3,313

1,499
-




Total
£’000
2
25,454
20,541
7,274
5,575
(13)

42,089		 58,833
Endow’t

£’000

-

16,745

20,172

3,100

1,457

-





Total
£’000
3
25,522
20,172
6,914
5,245
(11)

41,474		 57,845
Endow’t

£’000

-

16,736

20,541

3,313

1,499

-
-
















Total

£’000

2

25,017

20,541

8,487

4,898

700
(6)

42,089
59,639
Endow’t

£’000

-

16,745

20,172

3,100

1,457

-

-
Total

£’000

3

25,087

20,172

8,127

4,366

1,200
(6)

41,474
58,949

21 PENSION COMMITMENTS

The Group operates separate defined contribution group personal pension schemes for the Charity and its subsidiary, Snape Maltings Trading Limited. The assets are held in an independently administered fund. Contributions paid during the period amounted to £134,011 (2021: £145,945), of which £27,167 (2021: £25,565) related to higher paid staff within the income bands highlighted in Note 6.

Outstanding pension contributions, which are included within other creditors at 31 March 2022, totalled £11,108 (2021: £14,083).

22 CAPITAL COMMITMENTS

At 31 March, there were no capital commitments (2021: £nil).

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

23 RELATED PARTY TRANSACTIONS

Due to the nature of the Group’s operations and the composition of Trustees, transactions sometimes take place with non-Group organisations in which a Trustee will have an interest.

During the year, the Group recognised donations from Trustees and other family members totalling £329,138 including Gift Aid (2021: £99,563), of which £nil is within debtors at year end (2021: £nil).

Transactions between the Charity and Group members during the current and prior periods were as follows:

Current year
Balance at 31 March 2022
Income
Management charges
Rent
Interest on loan
Utility, accommodation and other income
Gift aid distribution
Expenditure
Management charges
Catering, car parking and other charges
Rent
Prior year
Balance at 31 March 2021
Income
Grants
Management charges
Interest on loan
Utility, accommodation and other income
Donations – transfer on group
reorganisation
Expenditure
Catering, car parking and other charges
Rent		 Snape
Maltings
Trading
Limited
£
155,193
341,730
239,831
43,069

31,282
-
655,912
10,995
91,278
-
102,273
450,164
-
181,892
46,734

11,963
-
240,589
12,073
-
12,073		 Britten
Estate
Limited
£
474,641
25,542
-
-
-
974,394
999,936
-
-
-
9,937
-
29,283
-
-
-
29,283
-
-
-		 Aldeburgh
Music
Endowment
Fund
£
-
-
-
-
-
-
-
-
-
-
-
47,890
84,428
-
2,153
16,598,027
16,732,498
-
81,560
81,560		 Elm
Property
Investments
(Snape
Maltings)
Limited
j
£
4,433
8,058
-
-
-
-
8,058
-
300
300
-
-
7,208
-
-
-
7,208
-
-
-

The organisational structure of the Group and the relationship between each Group member is highlighted on page 3 of the Trustees Report. All Group members have their registered office at Snape Maltings Concert Hall, Snape, Saxmundham, Suffolk IP17 1SP.

Britten Pears Arts Financial Statements 2021/22

DocuSign Envelope ID: EF4E528B-AE98-4E71-9BEC-AA79ADB01A10

NOTES TO THE ACCOUNTS (continued)

24 ANALYSIS OF CHANGES IN NET DEBT

ANALYSIS OF CHANGES IN NET DEBT
Group
Cash and cash equivalents
Cash		 Other
1 April
non cash 31 March
2021
Cash flow
changes
2022
£’000
£’000
£’000
£’000
2,794
2,114
-
4,908
2,794
2,114
-
4,908

25 CONTINGENT LIABILITY

The Charity and its wholly owned subsidiaries, Snape Maltings Trading Limited and Britten Estate Limited, share the same registration for VAT purposes, reducing administration and imposing joint and several liabilities on each party. At 31 March 2022, the net joint VAT liability was £147,242 (2021: £4,912). Of this liability, £nil (2021: £nil) is represented by the Charity, £57,327 (2021: £nil) by Snape Maltings Trading Limited and £89,916 (2021: £4,912) by Britten Estate Limited.

26 OPERATING LEASE COMMITMENTS

Besides low value commitments to hire equipment for activities, the Charity and Snape Maltings Trading Limited occupy premises at Snape Maltings and Aldeburgh which were leased from Aldeburgh Music Endowment Fund and from Elm Property Investments (Snape Maltings) Limited and in the prior year, Aldeburgh Music Endowment Fund. Related income and expenditure are eliminated on consolidation. The property leased from Aldeburgh Music Endowment Fund to the Charity was transferred by Aldeburgh Music Endowment Fund to the Charity on 31 March 2021.

The total future minimum lease payments under non-cancellable operating leases are as follows:

Amounts due:
Within one year
Between one and five years		 2022
£’000
-
-
-		 2021
£’000
26
14
40

27 GUARANTEE

The Charity is a company limited by guarantee. In the event of any winding up, each member would be required to contribute £1 towards the liabilities of the company. As at 31 March 2022 there were 13 such members (2021: 13).

Britten Pears Arts Financial Statements 2021/22