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2022-03-31-accounts

Charity Registration No. 261403

Company Registration No. 00982535 (England and Wales)

OPERA RARA

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

OPERA RARA

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees C Alexander
G Hurstfield
S Mortimore QC
A Nicol
I Oliva Salinas
N Thomas
L Watt
A Laurenti (Appointed 13 September 2021)
T Sinclair (Appointed 13 September 2021)
Chief executive officer H Little
Secretary H Little
Charity number 261403
Company number 00982535
Registered office Studio 11 Cloisters House
8 Battersea Park Road
London
SW8 4BG
Independent examiner Joel Courts
c/o HW Fisher LLP
Chartered Accountant
Acre House
11-15 William Road
London
NW1 3ER
Bankers National Westminster Bank
218 Upper Street
London
N1 1SA

OPERA RARA

CONTENTS

Page
Trustees' report 1 - 6
Independent examiner's report 7
Statement of financial activities 8
Balance sheet 9
Statement of cash flows 10
Notes to the financial statements 11 - 22

OPERA RARA

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 MARCH 2022

The trustees present their report and financial statements for the year ended 31 March 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and the Charities SORP (FRS 102) (effective from 1 January 2019).

Objectives and activities

Opera Rara’s mission is to rediscover, restore, record and perform the forgotten operatic masterpieces of the 19th and early 20th centuries. Led by our Artistic Director, Carlo Rizzi our commitment to excellence is achieved through the highest musical standards. With every project, Opera Rara creates a new permanent work of art via a studio recording of the highest artistic and technical quality. Opera Rara is not simply a recording label; it is also a company that presents first class concert performances in major concert halls and opera houses including the Royal Opera House, Covent Garden, Royal Festival Hall, the Barbican and the Royal Albert Hall.

“Any lover of opera should be grateful for the existence of Opera Rara. This unique organisation provides an indispensable service, bringing neglected gems of the 19th century to 21st century audiences. Without Opera Rara, countless musical treasures would remain essentially lost, unheard and unappreciated by contemporary and future audiences”. Renée Fleming, soprano.

“Opera Rara is virtually the only company still making studio recordings of complete operas while still seeking technical perfection in respect of vocal, stylistic and textual authenticity”. The Financial Times

Achievements and performance

During the year and in response to government Covid 19 pandemic restrictions surrounding live performances, along with the uncertainty of not knowing when restrictions may end, and to conclude the celebrations of our 50 th anniversary. We launched a new initiative ‘Opera Rara Classics’ brand to remaster and release limited editions of our most cherished recordings, many of which have been unavailable in CD format for over a decade. In September 2021 we released Donizetti in the 1830s and in February 2022 we released Rossini in 1819 . Both box sets feature 3 remastered operas from the Opera Rara catalogue and include a specially commissioned essay by an expert on the composer of each set. This initiative had a positive reaction and allowed us to keep our current audience engaged and reach new audiences in a time when studio recordings were not possible. It also gave us the opportunity to reconnect with artists with whom we collaborated decades previously. These included Della Jones, Carmen Gianattasio, Gregory Kunde and Mirco Palazzi who were featured in launch events and video interviews.

“A glittering tribute to the label’s work.” – Donizetti in the 1830s – BBC Music Magazine

“The quality on all three recordings is very high, whether it be the singing, orchestral playing or the newly remastered sound – all characteristic of the company’s excellent output through the years… In short, this is a must for any lover of bel canto.” – Donizetti in the 1830s – Capriccio

“All three operas are exceptionally well recorded. Unlike many companies, Opera Rara has always been aware that what is acceptable to an audience live in the hall rarely sounds well on record.” – Rossini in 1819 – Gramophone

No new recordings were released during the year because of postponed recordings during Covid restrictions the previous year. However, Opera Rara’s, work was still recognised during the year at international awards. Our recording of Donizeti’s Il Paria made it to the finals of the International Classical Music Awards (ICMA) in the Best Opera Recording of the year category. Anima Rara , the debut recital album from the acclaimed verismo soprano Ermonela Jaho, was shortlisted for a Gramophone Award. A further trophy was accepted by Ermonela at the International Classical Music Awards for her outstanding performance on the album at a gala concert in Lichenstein on 27 June 2021.

The superb Albanian Soprano Ermonela Jaho shows great dramatic artistry. Her charisma and ability to trigger goosebumps and emotional sympathy in the listener distinguish her outstanding singing. which benefits from a characteristic and recognizable timbre. Her consistently warm and powerful voice is projected evenly over the whole range of the soprano registers and is capable of all the necessary dynamic and colourful nuances required.” – ICMA citation.

OPERA RARA

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

In December 2021 following the lifting of Covid restrictions with live performances, we made a new studio recording followed by a public concert of Leoncavallo’s one act opera: Zingari. The vocal score was reconstructed from the composer’s original version of the score which premiered in London in 1912. This was Carlo Rizzi’s first recording with Opera Rara since joining as our Artistic Director in 2019 and marked a return to our collaboration with the Royal Philharmonic Orchestra. We assembled a n outstanding cast, with Krassimia Stoyanova, Stephen Gaertner and Arsen Soghomanyn, three artists who have previously recorded with Opera Rara, and Łukasz Goliński alongside our own Opera Rara Chorus. The recording will be released in September 2022.

“Opera Rara, however, who have done so much to champion Leoncavallos’s work of late, chose it (Zingari) to mark their return to live music after lockdown with a terrific concert performance conducted by Carlo Rizzi, with an outstanding cast… It’s hard to imagine it better done either. Arsen Soghomayan was dark-voiced, passionate Radu, slowly losing control when faced with Krassimira Stoyanova’s imperious, self-determined Fleana, gloriously sung. Stephen Gaetner, handsome sounding Tamar, di d wonders with his seductive serenade – a hit number in 1912 – while Łucasz Goliński was the stoical, knowing old man, unfazed by the murkiness of human nature. Rizzi conducted with formidable intensity, and the playing (the Royal Philharmonic) and choral singing (the Opera Rara chorus) were both first rate…Zingari, however, will linger in the memory as a superb achievement.” 4 stars – The Guardian.

Since the beginning of the Covid-19 pandemic, we have shifted our focus to widen our digital offerings and online presence, engaging with a larger, international audience. We have consolidated our growing digital library in a new online donor portal called My Opera Rara . Launched in May 2021, this new hub gives our members a frictionless way to access our digital materials such as documentary films, events, interviews and discussions, connecting them further with our work of live operatic archaeology. Our social media following across all our channels (Facebook, Instagram, LinkedIn and Twitter) has grown from 16,443 in August 2021 to 17,372 in April 2022, an increase of nearly 6% overall.

Future plans

In May 2022 we completed our new performing edition of a rediscovered opera by Saverio Mercadante, Il Proscritto. The manuscript was discovered by Opera Rara’s Artistic Dramaturg Roger Parker and our Artistic Director Carlo Rizzi. The manuscript was found in a library in Milan and a new performing edition was created by Roger Parker and Ian Schofield.

in June 2022 we will make a world premiere recording of this new edition, followed by a live performance with Opera Rara’s Artistic Director, Carlo Rizzi, conducting the Britten Sinfonia qt the Barbican.

In September 2022 we will be recording and performing Offenbach’s L a Princesse de Trébizonde in collaboration with the London Philharmonic Orchestra. Conductor Paul Daniel will lead an all-star cast in the UK première of Jean-Christophe Keck’s critical edition of the score with a live performance at the Southbank Centre‘s Queen Elizabeth Hall on 16 September 2022. The recording will be released in September 2023.

During 2022 and 2023 we will have 3 releases. In September 2022 we will release our recording of Zingari which we recorded and performed in December 2021. In January 2023 we will release the third of our ‘Opera Rara Classics’ with a CD box set of currently unavailable Offenbach recordings, which include Robinson Crusoe, Vert-Vert and Entre Nous and in March 2023 we will release our recording of Il proscritto.

Sales

Sales from our recordings were budgeted to achieve £72,650 and the final income for the year was £54,264 including physical CD’s and digital downloads and streaming. There were no new Opera recording releases in the year due to the pandemic, but we did release 2 new Box-sets of Opera Rara Classics. Donizetti in the 1830s and Rossini in 1819.

Physical sales of CD’s decreased on the previous year and achieved 70% of budget. Digital sales (streaming and downloads) continued the trend of the previous year, being ahead of budget. However, digital sales currently account for just over 17% of total sales revenue. We have set a budget of £69,575 for the year to 31st March 2023.

OPERA RARA

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Fundraising

As a charity, Opera Rara is reliant on fundraising to enable us to achieve our charitable outcomes.

Fundraising income for the year was £632,101 (2021: £838,310).

During the previous year, we opened a new tier of higher level giving called the Guardian Society. The Guardian Society is for annual donors of £100,000 or more. Opera Rara was successful in maintaining relationships with two members of our Guardian Society, and both have made multi-year pledges. During the year, this tier of giving generated £350,000 in contributed revenue.

Opera Rara is grateful for the generosity of its Guardian donors, who are at the heart of our fundraising and development. Alongside that, our strategy is to broaden and deepen support from as wide a pool of enthusiasts as possible. To that end we continue to build mutually rewarding relationships with our Patrons and Friends and engage with the growing number of donors within these levels of support .

Support from Trusts and Foundations included the scheduled drawdown of £85,000 from the award from The Foyle Foundation (for the transfer of our archive to the Royal Welsh College of Music and Drama). In March 2021, a new three-year award was made from the John Ellerman Foundation, of £120,000, paid in three annual equal instalments of £40,000 starting in April 2021.

Trustees review the delivery of our fundraising targets against budget at each quarterly Board meeting. Trustees pay close attention to ensure that the costs of our fundraising are accurately explained and managed.

Trustees would like to express their thanks to all our supporters who donated to the Opera Rara during the year.

Staff and operational structure

Henry Little continued to serve the charity as its Chief Executive, reporting to the Board of Trustees. Henry comes from a varied background in the opera industry, working initially as a Resident Director at Glyndebourne, The Royal Opera and English National Opera, an Artist Manager and Company Administrator and a ten-year period as Head of Opera at Arts Council England. More recently, he was Chief Executive of Orchestras Live, a National Portfolio Organisation of Arts Council England. Aurelie Baujean whose extensive experience of the classical recording industry is an asset to Opera Rara was promoted in her role of Label and Production Manager to Label and Production Director. Irene Cook continued as our experienced Finance Director and in January 2021, Zachary Vanderburg joined us from Lyric Opera of Chicago as our part-time Development Manager. His post has been expanded into a full time position and Zachary is now our Development and Communications Director.

The charity engages the services of several consultants on a freelance basis. These include a Development Consultant, a Repertoire Consultant, Casting Consultant and an Artistic Director. An external Press and PR agency handle our communication s.

Public Benefit

Trustees of a charity have a duty to report in their Annual Report on their charity’s public benefit. Opera Rara’s work benefits the general public through its expertise at rediscovering, recovering, restoring, recording and performing the forgotten operatic heritage of the 19th and early 20th centuries.

The trustees have considered the charity’s public benefit and concluded:

  1. That the aims of the organisation continue to be charitable;

  2. That the aims and the work done give identifiable benefits to the charitable sector and both indirectly and directly to individuals in need;

  3. That the benefits are for the public, are not unreasonably restricted in any way and certainly not by ability to pay; and

  4. That there is no detriment or harm arising from the aims or activities.

  5. 3 -

OPERA RARA

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Financial review

Total incoming resources amounted to £732,034 (2021: £930,420) of which £632,101 (2021: £838,310) was from fundraising, £1,523 (2021: £560) from bank interest and £98,410 (2021: £91,550) from sales and other income. Total resources expended were £546,042 (2021: £339,177) of which £52,303 (2021: £37,358) was spent on raising funds, £28,172 (2021: £30,996) on marketing and publicity and £465,567 (2021: £270,823) on charitable activities. Net incoming resources for the year amounted to £185,992 (2021: £591,243).

Total funds carried forward at the balance sheet date amounted to £881,077 (2021: £695,085), divided into restricted funds of £5,633 (2021: £58,354) and unrestricted (including designated) funds of £875,444 (2021: £636,731).

Policy on Reserves:

As a registered charity, Opera Rara does not attempt to generate profits. The majority of its funding, from individual funders and Trusts and Foundations is received in advance of expenditure.

Opera Rara is reliant on income streams over which it has limited control and therefore needs to ensure that its core operational costs can be covered for an appropriate period, should any of the income streams be unexpectedly reduced or delayed.

A further policy is to maintain sufficient unrestricted funds to cover a minimum of six months of overhead costs. Free unrestricted funds (unrestricted funds excluding designated funds, stock and fixed assets) of £823,931 on 31 March 2022 is sufficient to meet this policy objective.

It is an essential priority for us to restore our financial reserves to a healthy position to enable us to deliver our artistic plans within already secured or at least pledged and anticipated resources. By March 2022, we aimed to raise £530,000 in fundraising, in addition to an already agreed further £85,000 grant from the Foyle Foundation. We exceeded this target during the year by £17,101. We have also set a target of raising a further £680,000 in fundraising in addition to the agreed grant of £85,000 from the Foyle Foundation by March 2023. These are substantial sums which are very ambitious in the current climate. At the date of the signature of this report, we have already received sums and pledges amounting to £440,315. Our efforts are concentrated on a small number of individual donors who know Opera Rara well and are strongly committed in principle to an increased level of giving over a longer minimum four year period in order to support our programme. We are also committed to significant growth of our lower level membership base.

Risk management

The Board is responsible for the overseeing of the risks faced by the charity. Detailed considerations of risk are delegated to the Senior Management Team. Risks are identified, assessed and controls established throughout the year. A formal review of the charity’s risk management processes is undertaken on an annual basis. Risk is managed under the headings of artistic reputation, financial sustainability and project planning and delivery.

We ensure that our data, name, image logo and intellectual property are protected.

We have effective systems in place to ensure that we follow the Code of Fundraising Practice and that our fundraising aims and achievements are clearly communicated to the public and to our family of donors and supporters.

OPERA RARA

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Through the risk management processes established for the charity, the Board are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognized that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed. The trustees do not feel any further actions or provisions are required at the present time.

Structure, governance and management

The charity is a company limited by guarantee and was incorporated on 19 June 1970 and is governed by a Memorandum and Articles of Association which were amended on 1 September 1998, 1 September 1999, 16 May 2001 and 14 December 2020. The charity’s objects are the advancement of public awareness of the study of operatic art – in particular, by encouraging and promoting the lesser-known works in that field, and the broadening of the training of singers and artists by presenting them in the performance of operatic and orchestral recordings and concerts.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

C Alexander G Hurstfield S Mortimore QC A Nicol I Oliva Salinas N Thomas L Watt A Bunker (Deceased 19 April 2021) A Laurenti (Appointed 13 September 2021) T Sinclair (Appointed 13 September 2021)

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

A Board of Trustees who provide their services to the charity on a voluntary basis manages the charity. The Board of Trustees has appointed a Chief Executive Officer who is responsible for the day-to-day operation of the company and leads the management team. The Chief Executive reports directly to the Board of Trustees.

The existing trustees have the power to appoint new trustees. At the end of each period of office, trustees are eligible for reelection. The minimum number of Trustees is three.

Opera Rara operates with a lean and efficient senior management team of four led and managed by the Chief Executive. The Board, none of whom is remunerated for their services to the charity, set the pay and remuneration of the senior staff, which is kept under annual review. The key criteria used in setting pay are:

Asset cover for funds

Note 1 6 sets out an analysis of the assets attributable to the various funds and a description of the trusts. These assets are sufficient to meet the charity's obligations on a fund-by-fund basis.

OPERA RARA

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Going Concern and the impact of the Covid- 19 pandemic

The Covid-19 pandemic and measures taken by the government to respond continued to disrupt Opera Rara’s activities and we were forced to cancel our scheduled recording in July 2021 of Il furioso all’ Isola di San Domingo. But the effect on income and the financial position was not significant. Opera Rara differs from other opera companies because it buys in artistic resources for specific projects rather than incurring those resources as part of our fixed costs. Our fixed costs remain relatively small and focussed on our premises cost and the cost of salaries for our full-time staff. No staff were furloughed during the period of the pandemic as their work is essential to the ongoing running of the charity and the release of our current recordings and the preparation of future ones. The resulting effect on the decision to postpone recordings and performing activity means that we spent less money and, compared to many other organisations, we did not spend down our reserves to cover substantial fixed costs during an inevitable decline in earned income.

Our trustees are confident that the organisation can continue as a going concern for a period of at least twelve months from the date of approval of these financial statements. Furthermore, based on our most recent set of Management Accounts and Cash Flow forecasts to 31st March 2023, the trustees have a reasonable expectation that Opera Rara has adequate resources to continue in operation for the foreseeable future.

On behalf of the Board of Trustees

Charles Alexander

..............................

C Alexander

Trustee 07 Oct 2022 Dated: .........................

OPERA RARA

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF OPERA RARA

I report to the trustees on my examination of the financial statements of Opera Rara (the charity) for the year ended 31 March 2022.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Joel Courts

Joel Courts

c/o HW Fisher LLP Chartered Accountant Acre House 11-15 William Road London NW1 3ER

10 Oct 2022 Dated: .........................

OPERA RARA

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income from:
Voluntary Income
3
645,511
85,000
Investments
4
1,523
-
Total income
647,034
85,000
Expenditure on:
Raising funds
5
78,567
1,908
Charitable activities
6
241,132
224,435
Total resources expended
319,699
226,343
Net incoming/(outgoing)
resources before transfers
327,335
(141,343)
Gross transfers between
funds
(88,622)
88,622
Net income/(expenditure) for the
year/
Net movement in funds
238,713
(52,721)
Fund balances at 1 April
2021
636,731
58,354
Fund balances at 31 March
2022
875,444
5,633		 Total
Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
730,511
844,860
85,000
1,523
560
-
732,034
845,420
85,000
80,475
68,354
-
465,567
236,676
34,147
546,042
305,030
34,147
185,992
540,390
50,853
-
-
-
185,992
540,390
50,853
695,085
96,341
7,501
881,077
636,731
58,354		 Total
2021
£
929,860
560
930,420
68,354
270,823
339,177
591,243
-
591,243
103,842
695,085

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

OPERA RARA

BALANCE SHEET

AS AT 31 MARCH 2022

Notes
Fixed assets
Tangible assets
10
Current assets
Stocks
11
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one year
13
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
15
Unrestricted funds		 2022
£
49,203
71,657
969,336
1,090,196
(211,429)		 £
2,310
878,767
881,077
5,633
875,444
881,077		 2021
£
50,546
81,951
844,515
977,012
(285,344)		 £
3,417
691,668
695,085
58,354
636,731
695,085

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2022.

The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

07 Oct 2022

The financial statements were approved by the Trustees on .........................

.............................. Charles Alexander C Alexander

Trustee

Company Registration No. 00982535

OPERA RARA

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2022

Notes
Cash flows from operating activities
Cash generated from operations
19
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash generated from/(used in) investing
activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2022
£
-
1,523		 £
123,298
1,523
-
124,821
844,515
969,336		 2021
£
(2,492)
560		 £
486,456
(1,932)
-
484,524
359,991
844,515

OPERA RARA

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

Charity information

Opera Rara is a private company limited by guarantee incorporated in England and Wales . The registered office is Studio 11 Cloisters House, 8 Battersea Park Road, London, SW8 4BG.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum & Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

The Trustees have considered the effect of the prolonged Covid-19 outbreak. The Trustees consider that the outbreak is unlikely to cause a significant disruption to the organisation’s activities and are confident that the organisation can continue as a going concern for a period of at least twelve months from the date of approval of these financial statements. The Trustees have a reasonable expectation that the organisation has adequate resources to continue in operation for the foreseeable future.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

OPERA RARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is recognised on an accruals basis, inclusive of value added tax.

Costs of generating funds are those costs incurred in attracting voluntary income, in particular grant funding and the costs of maintaining the charity's profile within the sector.

Expenditure relating to Opera production costs are those elements of expenditure directly incurred in performing these activities.

Governance costs include those costs incurred in the governance of the charity's assets and are primarily associated with constitutional and statutory requirements.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery 33% reducing balance basis Fixtures, fittings & equipment 15% straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/(expenditure for the year , unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

OPERA RARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

1.10 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 in the charity 's balance sheet 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

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

OPERA RARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

1.13 Foreign exchange

Transactions denominated in foreign currencies are recorded at the rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All differences are included in net outgoing resources.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stocks

Stocks of CDs are valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand and the promotional, competitive and economic environment.

3 Voluntary Income

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Donations and gifts
547,101
85,000
Incoming resources from
charitable activities
98,410
-
645,511
85,000		 Total
Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
632,101
753,310
85,000
98,410
91,550
-
730,511
844,860
85,000		 Total
2021
£
838,310
91,550
929,860

OPERA RARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

4 Investments

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Interest received 1,523 560
Raising funds
Unrestricted Restricted Total Unrestricted
funds funds funds
2022 2022 2022 2021
£ £ £ £
Costs of generating voluntary income
Staging fundraising events 18,968 975 19,943 31,958
Staff costs 32,360 - 32,360 5,400
Costs of generating voluntary income 51,328 975 52,303 37,358
Marketing and publicity
Other activities 27,239 933 28,172 30,996
78,567 1,908 80,475 68,354

OPERA RARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

6 Charitable activities

Opera Opera
production production
costs costs
2022 2021
£ £
Staff costs 181,683 177,331
Depreciation and impairment 1,107 1,434
CD Manufacturing 19,637 21,978
Travelling 20,533 109
Bank charges 1,029 1,294
Performers and coaches 136,452 1,000
Engineers and editing 5,680 5,400
Hire of studios 6,810 -
Music preparation 35,067 8,500
Artwork and photography 2,300 4,055
Royalties paid 2,225 -
Opera Rara Direct 3,998 -
Stock movement 1,343 2,589
417,864 223,690
Share of support costs (see note 7) 39,176 38,767
Share of governance costs (see note 7) 8,527 8,366
465,567 270,823
Analysis by fund
Unrestricted funds 241,132 236,676
Restricted funds 224,435 34,147
465,567 270,823

OPERA RARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

7
Support costs
Support costs
Governance
costs
£
£
Rent & rates
20,695
-
Insurance, light & heat
4,208
-
Repairs & maintenance
149
-
Printing, postage &
stationery
1,244
-
Telephone & website costs
8,459
-
Travelling
1,074
-
Subscriptions
2,140
-
Bank charges
390
-
General expenses
817
-
Accountancy
-
3,147
Legal and professional
-
-
Independent examination
fees
-
5,380
39,176
8,527
Analysed between
Charitable activities
39,176
8,527		 2022
Support costs
Governance
costs
£
£
£
20,695
20,744
-
4,208
2,025
-
149
68
-
1,244
2,731
-
8,459
8,637
-
1,074
14
-
2,140
2,359
-
390
390
-
817
1,799
-
3,147
-
2,526
-
-
500
5,380
-
5,340
47,703
38,767
8,366
47,703
38,767
8,366		 2021
£
20,744
2,025
68
2,731
8,637
14
2,359
390
1,799
2,526
500
5,340
47,133
47,133

Governance costs includes payments to the independent examiners of £5,380 (20 21 : £ 5,340) for independent examination fees , and £3,147 ( 20 21 : £2,526) for other services.

Support costs include operating lease p ayments in re s pect of the property of £17,000 (2021 : £17,000).

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration or reimbursed expenses during the year .

9 Employees

The average monthly number of employees during the year was:

2022 2021
Number Number
Management and fundraising 4 4

OPERA RARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

9
Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was £60,000 or more were:

£70,000 - £80,000
The chief executive officer received a total remuneration of £ 82,875 (20 21 : £ 81,000 ) .		 (Continued)
2022
2021
£
£
190,978
164,127
14,161
11,399
8,904
7,205
214,043
182,731
2022
2021
Number
Number
1
1		 (Continued)
2022
2021
£
£
190,978
164,127
14,161
11,399
8,904
7,205
214,043
182,731
2022
2021
Number
Number
1
1
182,731
2021
Number
1
10
Tangible fixed assets
Plant and
machinery
Fixtures, fittings
& equipment
£
£
Cost
At 1 April 2021
7,095
43,720
At 31 March 2022
7,095
43,720
Depreciation and impairment
At 1 April 2021
4,074
43,324
Depreciation charged in the year
1,007
100
At 31 March 2022
5,081
43,424
Carrying amount
At 31 March 2022
2,014
296
At 31 March 2021
3,021
396
11
Stocks
2022
£
Finished goods and goods for resale
49,203
Stock comprises CDs held for sale.		 Total
£
50,815
50,815
47,398
1,107
48,505
2,310
3,417
2021
£
50,546

OPERA RARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

12 Debtors

Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 2022
£
23,034
7,531
41,092
71,657		 2021
£
18,135
22,792
41,024
81,951

13 Creditors: amounts falling due within one year

Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2022
£
5,936
13,558
3,700
188,235
211,429		 2021
£
5,829
9,001
3,700
266,814
285,344

The income deferred in the current year is £120,000 (2021 : £ 205 ,000 ) . This is deferred because there is a restriction on the amount of income Opera Rara are able to draw down in a year.

14 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit and loss in respect of defined contribution schemes was £ 7,491 (20 21 : £ 7,205 ).

OPERA RARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

15 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 April 2020

£
Il Furioso concert
-
Zingari
-
Zingari concert
-
Rosini in 1819
-
Le Princesse de Trebizode
-
L'Ange de Nisida
-
Semiramide
3,063
Repressed
4,438
Il Paria
-
Royal Welsh College of Music and Drama
-
Ermonela Recitals
-
Il Furioso
-
Donizetti 1830's
-
Il Proscritto
-
7,501		 Movement in funds
Incoming
resources
Resources
expended
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,868)
-
(6,978)
85,000
-
-
(10,801)
-
(7,500)
-
(5,000)
-
(2,000)
85,000
(34,147)		 Transfers
Balance at
1 April 2021

£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
3,063
-
2,570
6,978
-
(32,279)
52,721
10,801
-
7,500
-
5,000
-
2,000
-
-
58,354		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
31 March 2022
£
£
£
£
-
(300)
300
-
-
(156,809)
156,809
-
-
(19,037)
19,037
-
-
(10,825)
10,825
-
-
(1,131)
1,131
-
-
(2,225)
2,225
-
-
-
-
3,063
-
-
-
2,570
-
(1,500)
1,500
-
85,000
-
(137,721)
-
-
(15)
15
-
-
(7,692)
7,692
-
-
(4,556)
4,556
-
-
(22,253)
22,253
-
85,000
(226,343)
88,622
5,633		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
31 March 2022
£
£
£
£
-
(300)
300
-
-
(156,809)
156,809
-
-
(19,037)
19,037
-
-
(10,825)
10,825
-
-
(1,131)
1,131
-
-
(2,225)
2,225
-
-
-
-
3,063
-
-
-
2,570
-
(1,500)
1,500
-
85,000
-
(137,721)
-
-
(15)
15
-
-
(7,692)
7,692
-
-
(4,556)
4,556
-
-
(22,253)
22,253
-
85,000
(226,343)
88,622
5,633
5,633

The restricted funds represent grants and individual donations to finance the production of recordings. The outstanding restricted fund balances represent productions in progress as at the period end.

OPERA RARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

16
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2022
2022
£
£
Fund balances at 31
March 2022 are
represented by:
Tangible assets
2,310
-
Current assets/(liabilities)
873,134
5,633
875,444
5,633		 Total
Unrestricted
funds
Restricted
funds
2022
2021
2021
£
£
£
2,310
3,417
-
878,767
601,035
90,633
881,077
604,452
90,633		 Total
2021
£
3,417
691,668
695,085

17 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under noncancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2022
£
17,000
15,583
32,583		 2021
£
17,000
32,583
49,583

18 Related party transactions

Donations from Trustees to the charity during the year amounted to £22,100 (2021 - £14,000).

19 Cash generated from operations

Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in stocks
Decrease/(increase) in debtors
(Decrease) in creditors
Cash generated from operations		 2022
£
185,992
(1,523)
1,107
1,343
10,294
(73,915)
123,298		 2021
£
591,243
(560)
1,434
2,589
(15,784)
(92,466)
486,456

OPERA RARA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

20 Analysis of changes in net funds

The charity had no debt during the year.