## **THE HAMPSTEAD CHURCH MUSIC TRUST** ## **2022 ANNUAL REPORT** The trustees of The Hampstead Church Music Trust (“HCMT”) present their report and the accounts in respect of the financial year ended 31 December 2022. ## **Status** HCMT is an unincorporated association, constituted by a Trust Deed dated 20 April 1975 and registered as a charity by the Charity Commission for England and Wales with registration number 269427. The Trust Deed was amended during 2016 by a trustees’ resolution dated 20 April 2016 in order to change and update the provisions relating to the appointment and terms of office of trustees (see further below). Its correspondence address is c/o Hampstead Parish Church, Church Row, London NW3 6UU and its website address is www.hcmt.org.uk. ## **Trustees** Under the amended provisions of the Trust Deed referred to above the trustees are: - (a) the Vicar of St John-at-Hampstead (Hampstead Parish Church) - unless he declines to act or is disqualified from acting as a trustee; - (b)up to two (or, if the Vicar of St John-at-Hampstead declines to act or is disqualified from acting as a trustee or if there is no Vicar for the time being, up to three) persons appointed by the Parochial Church Council of St John-at-Hampstead (“PCC”); - (c) up to three persons appointed by The Friends of the Music of Hampstead Parish Church (“FOM”); and - (d)up to four persons appointed by the trustees themselves. With the exception of the Vicar trustees are normally appointed for fixed terms of three years. They are eligible to be re-appointed for further terms of three years except that, save in circumstances certified to be exceptional by each of the other trustees and with their unanimous consent, a trustee who has served for a consecutive period of nine years falling wholly after 20 April 2016 may not be appointed or re-appointed as a trustee. There are also provisions to ensure that a majority of the trustees are not members of the PCC. The trustees as at 31 December 2022 and their terms of office at that date were: The Vicar of St John-at-Hampstead The Reverend Jeremy Fletcher (until 23 January 2023) PCC appointees Frances Spalding (until 16 July 2023) Inigo Woolf (until 15 July 2024) FOM appointees Handley Stevens (until 31 December 2024) Robin Tyson (until 26 November 2025) Maurits Dolmans (until 17 May 2024) Trustee appointees Bryan Sanderson (until 31 May 2025) Gill Perrin (until 31 December 2023) ## **Object** The object of HCMT, as set out in the Trust Deed by which it is constituted, is to maintain and promote the performance and appreciation of church music in Hampstead and in particular Hampstead Parish Church. Church music is defined for this purpose as including music written for performance as part of or during any church service and any other music which (having regard to its character) is suitable for performance in a church or by a church choir. The trustees give effect to this object by the making of grants, including in particular grants towards the cost of the music at services at Hampstead Parish Church. These grants help to ensure the continuity of the Parish’s long-standing musical tradition (including the musical education and development of its junior choir) which makes a major contribution to the life and ministry of the parish. ## **Restricted funds** In addition to its unrestricted (or general) fund HCMT had two restricted funds during the year, namely: - (a) the **Martindale Sidwell Memorial Fund** the object of which being to establish a recital fund for young musicians, particularly those associated with Hampstead Parish Church; - (b)the **Barney Rodgers Memorial Fund** , being for the benefit of the junior choir at Hampstead Parish Church but which, in the event that the junior choir is disbanded, may be used to support the music at Hampstead Parish Church. ## **Activities** The principal activity of HCMT during 2022 was the making of grants in pursuance of its objects. The total amount of grants awarded during the year was £99,428 (2021: £98,317) and included amongst them were the following: - £52,000 towards the general service music costs at Hampstead Parish Church plus £880 for the cost of performing two symphony anthems; - £ 5,537.73 for a performance of Bach’s St John’s Passion at Hampstead Parish Church - £10,000 towards the general service music costs at the church of St Mary The Virgin, Primrose Hill; - £20,000 towards the cost of a series of concerts, recitals and meditations given by the Hampstead Collective in Hampstead Parish Church and St Peter’s Belsize Park in the course of 2022/3; - £2,000 towards the costs of the Hampstead Community Choir; - £1,400 towards the costs of a concert given by the Hampstead Chamber Choir; - £1,650 towards the costs of a concert given in Hampstead Parish Church by the Choir of the 21st Century - £3,000 towards the cost of a concert at Heath Street Baptist Church - £1320 towards the costs incurred by the London Festival of Contemporary Church Music - In addition, grants were given from the Barney Rodgers Memorial Fund - £1,640 contributed towards the costs of individual singing tuition for the members of Hampstead Parish Church’s junior choir; As in previous years, performances of choral music were greatly enhanced for singers and audience alike by the availability of grants from HCMT making it possible for the choirs concerned to be accompanied by an orchestra rather than piano or organ ## **Public beneft** The grants summarised above gave effect to HCMT’s public benefit role which is the promotion of both the arts and education through church music, and in carrying out the work of HCMT the trustees have had regard to the Charity Commission’s guidance on public benefit. Once again the largest grant during the year was made towards the general music costs at Hampstead Parish Church where services are open to all and where music plays an important role in many of them. The music, which is provided by professional musicians, is of a very high standard and not only is it an integral part of the regular worship of the parish but its quality and variety draws a wide range of people to the services. The junior choir, open to boys and girls aged 8-18, also plays a valuable role in the life of the parish whilst at the same time providing its members with a knowledge of and grounding in church music that it is hoped will remain with them in later life. The grant towards the costs of the Community Choir opens opportunities for singers of limited experience to discover the joy of music-making. ## **Finances** ## (A) Investments The investments of HCMT are held in a number of pooled investment funds, using a mix of funds to provide income and capital growth, with three investment managers as a means of diversifying risk. Performance over the past three years has been as follows. 2020 2021 2022 **----- Start of picture text -----**
% % %
Increase in capital value 4.18 15.36 (10.00)
Investment income 2.57 2.79 2.50
Total return 6.75 18.15 ( 7.50)
**----- End of picture text -----**
The Trustees aim over a three year period to achieve a total return of at least 7% per year. Investment income is calculated by dividing the investment income received during the year by the market value of investments at the start of the relevant year. Whilst this aim has not been met, over the past five years capital growth has averaged 5% per year and with investment income added in, the total return will have met the trustees objectives. ## (B) Income and expenditure The total incoming resources for the year amounted to £102,634 (2021: £100,305), whilst total resources expended amounted to £99,428 (2021: £98,317). As a result, there was an overall net operating surplus for the year of £3,206 (2021 a deficit of £1,988). ## (C) Reserves policy The trustees’ reserves policy is in two parts. The first is that the unrestricted fund has been divided into an **Unrestricted Investment Fund** and an **Unrestricted General Fund** . The Unrestricted Investment Fund is a long term investment fund and comprises HCMT’s unrestricted investments the income from which funds HCMT's principal on-going grant-making activities. Meanwhile, the Unrestricted General Fund is HCMT’s general operating fund to which all its unrestricted incoming resources (including the income from the investments in the Unrestricted Investment Fund but excluding any legacies that the trustees decide should be added to the Unrestricted Investment Fund) is credited and from which all grants (other than grants from the restricted funds) and other outgoings are paid. Under the second part of the policy the trustees have decided that, in order to ensure that HCMT has sufficient funds to meet grant requests as and when needed without being dependent on the timing of distribution receipts from the investments in the Unrestricted Investment Fund, it should as a general rule of thumb hold some £50,000 of immediately available cash in the Unrestricted General Fund, this sum being equivalent to six months’ anticipated expenditure. Unrestricted cash balances at the year-end were £95,545 (2021: £88,528). This puts the Trustees in a strong position to maintain and develop their grant-making activities in 2023. ## (D) Net assets At the end of 2022 HCMT’s net assets amounted to £3,783,913 (31 December 2021: £4,191,129). Of this amount £3,653,012 (31 December 2021: £4,136,458) was attributable to the Unrestricted Investment Fund and the Unrestricted General Fund and £50,796 (31 December 2021: £54,671) was spread between the restricted funds. ## **Priorities for 2023** In addition to HCMT’s normal grant-making activities, the trustees’ priorities for 2023 include: - a stronger emphasis on supporting the performance of new and contemporary music - more support for the development of music for children in Hampstead - support for a programme of organ recitals to showcase the fine Willis instrument at St John-at-Hampstead - building on relationships within the musical world, both at an educational and professional level, in order to establish lasting partnerships that will enhance the Trust’s funding programme This report was approved by the trustees on 3 April 2023 Trustee….Bryan.K.Sanderson…………Trustee…..Handley.M.G.Stevens…… THE HAMPSTEAD CHURCH MUSICTRUST STATEMENTOF FINANCIALACTNmes FOR THE 12 MONTHS ENoeo 31 DECEM8ER 2022 Unrestntttd Unrtstrirted Notes Genero1 Invertment Restrirteed Funds Totol 2022 Totol 2021 Incom1￿ resources DonatSons Tax recovered lnvestmeni Income 70.00 17.50 77. 70. 17.so 1,070.00 17.50 100 99 217.25 Totsl In¢omlnE re50urre5 100,365.04 2.269.12 102,634.16 100.304.75 Rtsourtes ¢xp¢rtded Admini5tratlon Granis 97,787.73 1.640.00 99,427.73 98.317.00 Total ie50ur¢es expended 97.787.73 1.640.00 99A27.73 98,317.00 Net incoming re50ur(es foryear 2.577.31 629.12 3,206.43 4987.75 Chan8e in value of investments 1405,918.(01 14,504.001 1410,422.001 546,844.00 Net mov*m•nt Ih lunds 2,577.31 1405,91&001 13,874.B81 14107215.571 $44831.75 Balances at start of year 77,527.75 4.058,930.00 54,670.77 4,19L128.51 3,641296.77 Balances tawrfèd forward at yeai ethd 80,105.06 3,653,OILOO 50,795.89 3,783,912.95 4,19IIZ8.52 THE HAMPSTEAD CHURCH MUSIC TRUST BALANCE SHEET AS AT 31 DECEMOER 2022 Unresrrl¢ted Unre5trkt¢d Restrl(teed Notes GtnerolFund InvestmentFund Funds Totol 2Q22 2021 Investments at market value 3.653,012.QO 43.260.QO 3,696.272.00 4,106.694.00 Cath at bank and on deposit 95,545.06 7.535.89 103.080.95 95,434.52 Total assets 95,545.06 3,653,012.00 50,795.89 3.799,352.95 4,202,118.52 15,440.00 15.440.twJ ii.000.()o NET ASSErs 80,105.06 3,653,012.Cll 50.795.89 5.783.912.Y5 4.191.12&52 SIGNED Bryan Sanders¢)n Trustee Ini¥0 WDolf Trustee insert date THE HAMPSTEAO CHURCH MVSICTRUST Note5 to th¢linancial statements Note l- Accountln bas15 These flnancial 5titements are prepared en a recelpts and payments bas15 wlth the e¥¢eption the Incluslon of grant5 approved but not paSd befD¥e the yearend (Nute 71 and the revaluation of Investments to market value 3t the year end (Note Sl. Note 2- Ut)restilrted Fund The Unrestricted Fund is d6vSded into the Unrestricted General Fund and the UnrE5frlcfed Investment Fund. The latter 15 a long term investrnent fund 3f*d comprises the unrestricted investments of the Trust the Income from which funds the Trust's principal grènt-mèkin activities. All the unrestricted Sncomè of the Trust. includine the income frorn the investments in the Unrestricted Investment Fund, is credSted tothe Unrestrlcted General Fund. out of which the 8ronts (other than gr•nts trom the Restrictèd Funds) and other outgoing5 are paid, NO¢¢ 3- R¢strirtÈd Funds The Restrlcted Funds comp¥ise'. (al the Martindale Sidwell Mernorial Fund whosè object Is to estsblish a recltal fund for youn8 musicSans, parricularly those a5S0Ci•ted with Hampstead Parlsh Church.. and Ibl the Barney Rodgers Memorlal Fund which is forthe benefit of the junior choir at Hamp5te3d P3ri5h Church butV4hich, in the e¥ent that the junior choir is disbanded. m3y be used to support the muslc at Hampstead Pailsh Church. Mortlndole51dwell MemorlolFundt BameyRo¢tser5 Memorftrl Fund Totol 8alèn¢e l january 2022 Incornin8 re5Durce5 OutEoinB resources Change In value of investments (Note 71 21,792.76 952.69 32,878.01 1,316.43 11,640.001 13.509.001 54.670.77 2,269.12 11,640.001 4.5Q4.00 Balance 31 Decemb*r201Z 21750.45 29.045.44 50.795.89 ftepre$ented by. Investrnent5 at rnarket value (Note 71 Cash at bènk ond on deposit 16.867.00 26,393.00 2 652.44 43,260.00 7 535.B9 ZI 750.4 29.045.44 50.795.89 Note 4. Grants Unrestrkted Re5trirteed GenertslFund Funds 58,418 20,000 2.000 1.40D 10,000 1.650 Totol 2022 58,418 20,000 Total 2021 52,470 27,￿0 1,500 1,200 iO.L) Hèmpstead Parish Church Hampstead Collective Hampstead Community Choir Hampstead Chamber Cholr st Mary the Virsin Churih Choir of the 21st Century All Hallows w St Stephen5 Church London Festlval Contemporary Church Muslc Heath Street Bapt15t Churoh St Peters Baroque Opera St Peters Church Unrestricted General Fund Martindale 5idwell Mernorial Fund arney Rodgers Meme¥ial Fund 1,400 10,000 1.650 1860 1,320 1.320 3.000 750 97.788 97.788 96,780 1,640 1.640 1.640 1.537 97. THE HAMpsfEAD CHURCH MU51CIRUST Notsstoihe financlal stat•m•nt5 Note 5- Cha e In value of Investment 8olonce JJanuury2022 Invested/ Goins/ Bolonce 1055es l Deeember2022 Unre$tri¢ted M & G Charifund Central Board of Finance of the Church of England.. Global Equity Income Fund Investment Fund Newton Growth & Incorne Ftsnd for CharStles Total Vnrestrl(ted 172.256.OJ 19,595.UOI 162.661.00 854.182.0) 1,246.115.QO 1,786,377.QO 4.058.930. 1119,87L.DOI (146,689.001 (129.763.001 1405,918.001 734,311.00 1,099,426.00 1,656,614.00 3,6S3,012.110 Restrlcted The Martlnd8le Sidwell Momorfal Fund M & G Charlfund The Barney RodKer$ Memorlal Fund CBF Property Fund 17.862.OJ 1995.001 16.867.00 29,901.C 13,509.QOI 14.504.001 26.393.00 Total Re5trlrted 47,764.LWJ 43,260.fJ) Not• 6. Invostrnents at C051 No. olunits l January 2022 11,069.(Kl No. ol un6ts investèd1501dl 31 Decernber 2022 11,069.00 Cost Unréstricted M & G Charifund incorne units Central Board of Flnince of the Church of En8lafid Global EquSty Income Fund shares Investment Fund 5hare5 Nehv£on (irowrh & lth¢omo Pund tor Charitles 161,183.32 278,834.64 53,211.61 1.060,164.80 278,834.64 53.211.61 1,06Q.164.80 440,(NJO. 724.949.90 1,197.810.84 2.523.944.06 Resirlrted The Martindale Sidwell Memorfal Fund M & G Charifund incorne units The Barhey R0d￿r$ Memoylal Fund Central 8oard of Finance of the Church of En813nd Property Fund iThcome 5hare5 1,147.81 1,147.81 11,890.48 20,221.63 10.221.63 2S.000.Ix) 36,890.48 Note 7- Llabllitles The liabilities comprise Erants approved btst not pald before the year end INDEPENDENT EXAMINER'S REPORTTO THE TRVSTEES OF THE HAMP5TEAO CHVRCH MUSIC TRUSTICharNy no. 269417) I report te theTru5tees on my examlnation of the 3c¢ouniS of the Charlty forthe year endpd 31 December 2022 Re5pertive rt5ponslb(Iltles of trurt•osand examlner The charlV5 trwtee5 a￿ Trsponslblefer the preparation of the account5. The chariW5 tru5tee5 CDnslder that an audit 15 not requlred for this year under 5e¢tion 144 of the Charitle5 Act 2011 Ithe A£tl and that an independent examlnatlon 15 neetled. lal to pxamine the aic¢unts under section 145 of the Act, Iblto lollowthe procedures laid down inthe general Direttlons glven by the Charity Commlsslon under sectlon 145ISllbl of the Act. an( Icl to state whether partl¢u14r matters have come to my attention. a515 of Ind¥p8nd•nt Examinerfs Statem¢nt My exarnination was carried out in accerdance with the 8eneral D1￿ctIOnS given bythe Charity Commission. An examination Includes a review of the accounting fEcords kept bythe charlty and a compar150n of the aecounts presented with those record5. It also includes consideration of any unusual items or disclosures in the occDunts, and seeking explanations from the tru5teps concernln8 any such matters. The procedures undertaken do not provide all the evldente thatwould be required In an audlt, and Consequently no opinion 15 8lven asto whether the accounts present a.true and fair ￿eW and the report15 Ilm5ted to those matters set out ITh the 5t3tement below. lThd8pgrKhnt Examlnei's Statement In connecUon wlth my examlnatlon, no mater131 matters have come t¢ my attention which 8ive me cause to be11eve that, in any materlal re5pert: lil accounting records were not kept in accordance with 5ectlDn 130 of the Act oi lill the accounts do not a£cord with the accounting records. I have corne across no other matters ir* Conncetioll wlth the examination to which attentlon should be drawn in order to eriable a proper understandin8 ef the accounts to be reached. 19 2DI Slsned.. Dee Thornas Date.. Address.. 36 Cau5ton Street London SWIP 4AU I