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2022-12-31-accounts

Nordoff-Robbins Music Therapy ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

Nordoff and Robbins annual report 2022

“Universal values can live in music – that is why music can become so important in the lives of all of us” - Paul Nordoff and Clive Robbins

Welcome to the Nordoff and Robbins 2022 annual report. Here, we look at our impact and how we have met the needs of our clients, our ongoing strategy and whether we are on target, the money we have raised and how we have spent it.

Reference and administrative information 2
Strategic report
Our vision, mission and purpose 3
Charlie’s story 3
Our strategy 3
A message from our Chairman 5
A message from our Chief Executive Officer 7
The impact of Nordoff Robbins and our music therapy 8
Providing quality music therapy, an overview of the year 8
Education – keeping our programmes running 17
Research - putting our work on pause 19
Janet’s story 19
Fundraising activities and performance 20
Providing high quality support to our people 21
Structure, governance and management 22
Financial review 24
Financial statements 32

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

Reference and administrative information

Board of Trustees

CEO

Secretary

Statutory Auditor

Crowe U.K. LLP, Aquis House, 49-51 Blagrave Street, Reading, RG1 1PL

Bankers

Coutts & Co, 440 Strand, London WC2R 0QS

Investment Advisors

Investec, 30 Gresham Street, London EC2V 7QN

Solicitors

BDB Pitmans LLP, 50 Broadway, Westminster, London SW1H 0BL

Nordoff-Robbins Music Therapy – a company limited by guarantee (trading as Nordoff and

Robbins)

The address of the registered office is: 2 Lissenden Gardens, London, NW5 1PQ

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

Strategic report

Our vision

To live in a world where through music therapy, people’s true potential is realised regardless of disability, illness, or exclusion.

Our mission

Our purpose

To break through barriers with the power of music, creating space for people to express themselves and find connection in society.

Music therapy is helping Charlie to thrive at school and form relationships

Charlie is 13 years old, has complex educational needs and attends an additional needs support school.

The class activities and structure of school life were difficult for Charlie to access, and he found the school day frustrating and dispiriting.

But Charlie loves music and dance, and he was excited at the prospect of trying music therapy. In Charlie’s first session, he hit different instruments with a beater, and did his signature wiggle dance, but he kept saying that he wanted to go home. The session lasted for just two minutes.

As time went on, Stella, his music therapist, started to understand Charlie better. Stella realised that Charlie’s body was engaging fully with the music, but his mind was restless because he didn’t feel in control. “I considered how to offer Charlie stronger experiences of leadership to help him feel a sense of agency over his time in the music room,” she explains.

Stella wrote a song especially for Charlie, featuring the lyrics. “Charlie’s in the music room, what will he do next?”.

As he learnt the song, Charlie started to take great delight in showing Stella which instrument he was going to play next. Gradually, Charlie became less anxious about going home, and started to sing along, “Hello, hello, look at me! Charlie’s in the music room today!”.

Fast-forward a year, and Charlie can’t wait for music therapy every week.

It’s helped him to engage with school activities and the staff often use singing to encourage Charlie. He’s even started bringing his favourite songs to Stella and created his own goodbye tune for the end of every session.

It’s a joy to watch Charlie take ownership of music as a big part of his life and a privilege to share his favourite part of the week with him,” says Stella. “I look forward to seeing what Charlie will do next!”

Our strategy 2019 – 2024

Every day we see the power of music first-hand. And every day we see the growing need for music therapy within the UK. We believe music is a human right. And our strategy aims to give more people access to this right.

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

The strategy has four goals:

Goal 1: provide high quality music therapy and increase the accessibility of our services across the UK. We will reach 14,338 people with 58,184 music therapy sessions by 2024.

Goal 2: grow our overall income to £9m and increase our fundraising income 55% by 2024 to £6.25m.

Goal 3: position Nordoff and Robbins as the UK Charity known to change lives through music.

Goal 4: provide high quality organisational support that empowers colleagues to flourish and enables the charity to succeed.

A snapshot of 2022

Executive summary

We want everyone to thrive through music and feel connected to themselves and the world around them. There are many people, due to life circumstances and the lack of support within society, who struggle to access all that music has to offer and find themselves isolated from the world.

Our founders believed this and in 1959, Paul Nordoff (American composer and pianist) and special education teacher, Clive Robbins, developed a new form of collaborative music-making to engage vulnerable and isolated children, which they termed ‘therapy in music’.

We work to not only provide music therapy but to educate the music therapists of the future as well as undertake research into music therapy and the wider social value of music.

In 2022 we reached nearly 12,000 individual people with over 45,000 therapy sessions. This means we need to increase our reach by 19% to meet our strategic goal of 14,338 for 2024. As we look forward, we are committed to increasing the number of people we reach and helping them through music therapy.

Fundraising income has seen its largest year yet, reaching £5.5 million. All in the midst of a pandemic and cost of living crisis. This allows us to reach more people with the power of music. We thank each and every donor that invested in our mission.

Out of our 127 colleagues, 97 are music therapists. We employed 10 graduates from our Nordoff and Robbins Masters in Music Therapy in 2022 and continue to see students complete their doctorates, congratulations to Maren Metell.

We are committed to the 3 strands of our mission Education, Research and Delivery of Nordoff and Robbins Music Therapy. As we look ahead towards a new strategy, we will continue to champion and grow the use of music, reaching more people in more places.

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

A message from our Chair of Trustees, David Munns

More people and more music therapy

2022 saw us reach more people with music therapy than ever, welcome a new cohort of graduate music therapists, and deliver a full calendar of events.

We could not have done this without our music therapists and dedicated team at Nordoff and Robbins. I thank everyone who turns up each day to help meet the growing demand for music therapy across the UK.

In spite of the ongoing challenges and pandemic, we have been able to support nearly 12,000 people, offer over 46,000 music therapy sessions, support the latest students on our Masters in Music Therapy programme, employ 10 graduates and welcome new music therapists to Nordoff and Robbins.

Although we have much positive impact to share throughout this report, we must also urge caution as the prevailing winds are not in our favour. The external factors that impact us include negative economic factors such as inflation, interest rates, increase in energy costs and the cost of living crisis. These impact us all, and to reach the current demand of music therapy, it will cost us much more than last year. We want to serve more people over the coming years so this means a further increase in our fundraising in a time when budgets are being tightened.

For us to provide this support and answer our mission, we are reliant on fundraising. Each year we offer our thanks to our fundraising committee chairs and committee members, and that’s especially true this year as we raised a record figure.

Without the time and talent that this group of people share with Nordoff and Robbins we would not be able to honour our commitment to employing the music therapists that we graduate each year.

These graduates are crucial to our strategic aims of supporting more people in more places across the UK who can benefit from our work. We now employ 97 music therapists.

A big thank you

I would like to thank our Event Chairs Andrew Wilkinson, Carl Leighton-Pope, Chris Wright, Emma Banks, Jake Leighton-Pope, Rebecca Kane Burton and Richard Griffiths in particular, it has been great to see a full calendar of events this year.

We ended the year once again with our Carols at St Luke’s Church. Our thanks to Andrew Wilkinson, Lucy Morris and Audrey Hoare for their tireless commitment to our mission through this event. Also, thank you again Merck Mercuradis and Nile Rodgers for your support in helping us put on a spectacular show.

We are also incredibly grateful to benefit from events held in aid of Nordoff and Robbins, so I would like to thank Chairs Donald MacLeod OBE, Geoff Shreeves, Toby Leighton-Pope and Dan Chalmers, and Victor Ubogu for their unwavering support.

I also want to thank Marc Jaffrey and welcome him to the board of Trustees at Nordoff and Robbins. He brings invaluable expertise from a brand and marketing perspective and it’s great to have him on board.

And of course, my thanks to all those involved in our fundraising both to colleagues within the organisation, and to our volunteers and supporters. We are indebted to you.

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Looking ahead to a new year

As we look ahead to 2023, our mission remains the same. Our ambition is still to support more people in more places through music therapy. We will build on the foundations of the support we’ve received from the music industry to become a more recognisable charity within the wider music-loving public, and grow a broader supporter base to champion our work and assist our fundraising.

It is an honour to continue to serve as the Chair of Nordoff and Robbins. We have a committed and engaged board of trustees, a team dedicated to the cause, and an organisation striving on a daily basis to meet the needs of our clients.

David Munns OBE

Chair of Trustees, Nordoff and Robbins

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

A message from our Chief Executive Officer, Sandra Schembri

Connection through music

We offer and create opportunities for people to connect through music who find this a challenge in their everyday lives. This could be because of profound disability, serious or terminal illness or acute isolation.

Our music therapy is transformational and radical work. It helps the people we work with to see their agency in a world that robs them of this connection by its very structures.

Thank you

2022 has been the first year where we have been able to plan in any meaningful way since the pandemic began in early 2020. We want to thank our fundraising partners existing and new who have (re)invested in our work in 2022 and helped us to make sure we can be there for our clients and commit to delivering further work in the future.

We want to thank each and every personal donor for your support. We understand that times are tough now, and they look set to remain tough for a while longer yet. We promise to make every penny of your donation work hard.

This has also been a year where the music for health and wellbeing ecosystem has collaborated in more and more ways, working together to make sure we can be there for those that need us. I look forward to continuing these conversations over the coming year.

In 2022, with our continued commitment to make music therapy more accessible across the UK, we started exciting discussions with friends and possible partners across the Greater Manchester region as to how our work can support the ambitious Greater Manchester Creative Health Strategy, as well as the Greater Manchester Music Commission’s recommendations.

We were delighted to close the year with news that Open Access would be restarting in Glasgow, as Coronavirus prevented us from offering this. Our thanks to our new friends at SWG3 for making this a reality and welcoming us into their creative community.

In Wales, we have developed our services for children with additional needs through our partnerships with mainstream schools. We have also developed our services supporting adults with brain injuries in both short-term rehabilitation and long-term care.

Our work with two clients with brain injuries received national press attention. In April, ITV Wales - profiled our rehabilitative work with one man following a stroke (https://www.itv.com/news/wales/2022 04-16/how-this-singer-who-suffered-a-life-threatening-stroke-rediscovered-his-voice).

In November the BBC reported on our work with Tim, who suffered a major injury, who felt that music therapy had given him a reason to live again (https://www.bbc.co.uk/news/uk-wales-63487468).

The power of music

At the start of this report, you will have seen Charlie’s story, showing how music helps him engage and thrive at his school.

We know first-hand the power of music and that it can be a powerful agent for change in the world. I would like to close by thanking all the team at Nordoff and Robbins. Our team are what makes our mission come alive. Through their focus and energy, they make sure we can be there for our clients today and in the future.

It remains a privilege to be a part of the team.

Sandra Schembri CEO, Nordoff and Robbins

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

Music therapy and delivery

The impact of Nordoff and Robbins and our music therapy

2022 was the year in which we recovered from the impact of the Coronavirus pandemic on our services. We delivered 3% more sessions and worked with nearly the same number of people (1% fewer - 147 people) than we did in pre-pandemic 2019. We delivered 31% more sessions and worked with 36% more people than in 2021.

Our services were still being impacted by Coronavirus restrictions during the early part of 2022, which included the cancellation of sessions, restriction on session attendance and limitations on certain types of sessions. This meant, for example, fewer individual or group sessions in some settings.

In 2022 the:

Cumulative number of partner organisation organisations we worked with = 359

Number of people we reached with our music therapy = 11,807

Number of music therapy sessions we held = 46,453

Nordoff and Robbins workforce: 127 colleagues, of which 97 are music therapists ( 76% of our workforce).

What our clients say

In 2022 we carried out 48 evaluations of our services in partner organisations around the country. Questionnaires about the impact of our services were sent to clients as well as family members, carers and staff who support them.

Providing quality music therapy

Delivery of music therapy

Our goal is to provide high-quality music therapy to all our clients, whilst increasing the accessibility of our services across the UK. We believe that music therapy should be available to the people who will benefit from it most due to their disability, condition or life circumstance. We are working hard to overcome the various barriers to this across the UK.

We are continuing to work to make our services more accessible than ever by overcoming the following barriers to accessibility: geographical, individual condition/circumstance and financial.

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Geographical

We are setting up new services in more places across the UK. New pilot projects are underway in:

Individual condition/circumstance

Our therapists are trained to adapt their service for the people they work with, our clients are amongst those with the greatest challenges in terms of social isolation and communication.

Our commitment to meeting the unique needs of people and places means that our services can look different in the varied places we work, from schools and NHS wards to care homes and community drop-in centres. Wherever we work, we actively seek out those people who stand to benefit most from the help music can provide.

A core element of our approach is to work in close collaboration with staff in the organisations we partner with. Their expertise in supporting those who are hardest to reach is essential in successfully building sustainable and effective music therapy services.

The impact of the pandemic on care settings is well documented, so we made establishing new services in dementia care settings a priority during 2022, alongside providing new music therapy services to people in learning disability, mental health, hospital and educational settings. Working closely with staff in care homes and community settings, we worked with nearly twice as many people living with dementia during 2022 than in 2021 and increased the number of dementia settings we work in from 14 to 24 across England, Wales and Scotland.

Fees for music therapy

We know that for some organisations or individuals, fees for music services are a barrier, so we provide all of our services within our centres and bases free of charge. Our work in Open Access community settings is also provided free of charge along with some introductory pilot projects in a range of settings where we collaborate with partner organisations.

For those we do charge fees to, we run a subsidised model so that we can reach more people across the UK with the resources we have.

At the end of 2022, 27% of our services were being delivered either free of charge or with our highest levels of subsidy and 73% with lower levels of subsidies.

In person or online music therapy

Using technology to provide music therapy to people where that was possible and appropriate for them was very useful during the early phases of the pandemic.

As restrictions eased, our clients and partners increasingly requested to return to in person provision. This matched our own experience that in most cases music therapy is more effective when delivered face to face. The immediacy and spontaneous nature of the musical connection is limited by the online form.

This meant that in 2022 we continued to return to in person services wherever possible. Whilst at the end of 2020, 28% of our services were delivered online, this had dropped to 10% by the end of 2021.

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By the end of 2022, 96% of our music therapy delivery was face to face, with 4% delivered online following the needs and requests of those we work with.

We continue to deliver services online where this has proved beneficial in reaching people we might otherwise not be able to work with. As we continue to build on our digital accessibility approach we understand more where digital is helpful and best serves our clients and where opportunities exist. For example:

Accessible Music Learning

Accessible Music Learning is one of the innovative streams of online delivery which we continue cultivating and learning from. During 2022, 22 people living with challenges of disability or illness were helped by our music therapists. Our clients developed both musically and personally by learning a musical skill through a long-term service accessed online. We delivered a total of 378 sessions.

“Luke [the music therapist] has been excellent, working at James' pace, and creating an environment that has undoubtedly encouraged him to explore his interest in guitar. Through his patience and understanding, Luke has built up a good rapport which is crucial to engagement. There are not many things that James describes as "cool" but his sessions are definitely one of them.” James’ mother

The Mountbatten Hospice Choir – on-site and online

At our Mountbatten Hospice partnership on the Isle of Wight, our work includes running a large community choir which supports the hospice’s mission of caring for those in the community affected by death and dying. The choir features hospice staff, volunteers, patients, relatives and members of the wider public. Its presence challenges the stigma and fear associated with hospices and plays a role in changing public perceptions of hospice care. The choir aims to embody the values of kindness, community and inclusivity that are at the heart of the hospice’s ethos.

The choir moved online during the Coronavirus pandemic but has returned to being in person with 50 to 60 members attending each week. The online option, however, has proved to have lasting benefit, helping a few members of the choir who are self-isolating to continue attending, and also helping members of the choir of Mountbatten’s sister hospice in Southampton to continue attending remotely, the two choirs having joined forces online during the pandemic.

“This choir has given me a whole new lease of life, it really has. I’m 83 but I love to sing, it’s wonderful.” - A member of the Mountbatten Hospice choir

The choir sings at various hospice events including celebrations, services and fundraisers. The photography shows the choir performing a Christmas carol concert in the hospice in December 2022 to a packed audience.

Our delivery numbers in 2022

In 2022, we provided 46,460 music therapy sessions.

This is a 31% increase on 2021, and a 3% increase on what we achieved pre-pandemic in 2019.

Through these sessions we reached 11,807 people, a 36% increase on 2021, although 1.5% fewer people than we reached pre-pandemic in 2019.

This is because the continuation of Coronavirus restrictions into early 2022 meant during these months we worked with fewer people within each organisation, despite being able to run an increased number of sessions. This was due to limitations on mixing, on group work and illness or staffing issues within our partnerships resulting in difficulties when supporting the technological requirements of online sessions, and leading to much higher rates of session cancellation.

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

At the end of 2022 we were delivering the equivalent of 320 days of music therapy per week across the UK, a 7% increase compared to 2021.

During the year we worked within 359 partner organisations, delivering everything from services which continued throughout the year to short term pilot projects. This total is a 13% increase compared to 2021, and reflects the many new pilot projects we continue to set up in different organisations in response to the pandemic.

The J. Brenda Hoskins Graduate Employment Scheme 2022

2022 saw our education and delivery teams continuing to work together to develop opportunities for the graduates from our Master of Music Therapy training programme to join our Graduate Employment Scheme (GES).

We were incredibly fortunate to receive funding towards our graduate intake from the J. Brenda Hoskins Trust and the players of the People’s Postcode Lottery for both this year and last year’s intake.

This funding was critical for recruiting new cohorts of trained music therapists in 2022. The scheme supports the newly qualified therapists starting their work as music therapists, at the same time as supporting our intention to expand our services to new locations and settings, helping us to offer music therapy to more people in more places.

Graduates from our Manchester and Newcastle training bases who completed their training and were recruited through GES 2021 completed their probation in 2022, and are now well-established as members of our regional teams across the country, working in North West and North East England, London, Yorkshire and Glasgow, as well as in Birmingham (our first two therapists to be based in this city).

GES 2022 provides opportunities for graduates from our London training base who completed their training in 2022 to join our national team. In total, we employed 10 graduates in 2022 delivering at least 3 days of music therapy each, and 32 days in total between them. These new graduates are all based in London and South East England, and are delivering work in a wide range of settings.

The pie chart below shows the range of client group settings in projects being delivered by GES 2022:

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

Music therapy delivery - places and people we worked with during 2022

People

Over the year we worked in partnership with 359 organisations ranging from schools, care homes, hospitals, hospices, secure mental health units and brain injury units. That’s 41 more organisations than the 318 we worked in during 2021.

Most partnerships active in 2021 continued into 2022, but 29 ended during the year. In most cases this was due to the organisation not being able to afford our subsidised service charge, or in some cases due to changes within the partner organisation meaning they were no longer able to accommodate our services. None of the organisations that stopped our services said this was due to dissatisfaction.

The chart below shows the distribution across different regions of the UK for the 11,807 people we worked with in 2022 in over 46,000 sessions, compared with 8,713 people in over 35,000 sessions in 2021.

Pie Chart – clients by region 2022

(Note on the pie charts: With the generous support of The Garfield Weston Foundation our services in North East England expanded during 2021, so for 2022 we are now showing data for our Yorkshire & East Midlands and North East England regions separately.)

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

Pie Chart – clients by region 2021

The expansion of our services between 2021 and 2022 was mainly helped by the J. Brenda Hoskins Trust Graduate Employment Scheme in September 2022, helping us launch new services in London and South East England.

Places

Throughout 2022, we continued to work in a wide range of organisations, with clients of all ages, health conditions and circumstances.

The charts below show that the proportions of our work with clients across different settings remained broadly the same between 2021 and 2022 as we continued focusing on groups who face the greatest communication challenges and social isolation.

We saw an increase in our work with people living with dementia and in mental health settings, and a small reduction in the proportion of our work delivered in educational settings.

Chart: distribution of services by type of setting at the end of 2022 (%)

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Chart: distribution of services by type of setting at the end of 2021 (%)

Being there for those that need us most

The pandemic exacerbated existing issues of isolation and access to therapeutic services. During 2022 we continued to set up new pilot projects, reaching out to organisations supporting people’s mental health, those living with dementia and adults with learning disabilities. We also continued setting up projects in educational settings where our services are known to help young people living with a range of special educational, emotional and behavioural needs reach their support and development goals.

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By the end of 2022, over 60 new pilot projects were happening across the country in a wide range of settings (see chart 5), including care homes for people living with dementia, neurorehabilitation centres, refugee community support centres, and schools for children with a range of behavioural and emotional needs.

Chart: pilot projects – distribution of new services by type of setting at the end of 2022 (%)

Chart: pilot projects – distribution of services by partner type at the end of 2021 (%)

Quality

While we continue to make our music therapy more accessible, we never lose sight of maintaining the high quality of our services.

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Our best practice quality assurance framework ensures all music therapists receive ongoing support, regular supervision, annual workplace visits and a range of continuing professional development opportunities, including mentoring and a support scheme for our therapists who act as supervisors.

This allows us to make sure we maintain high quality service provision as well as support the continuing professional development of our workforce.

Looking ahead

We are continuing to make our music therapy services more accessible. Next year we will continue focusing our efforts on providing additional services to people living with dementia and supporting mental health through music. We will work to expand our services in Northern England through our Graduate Employment Scheme.

We’ll continue our efforts to provide a Graduate Employment Scheme to students graduating from our Manchester and Newcastle training bases in 2023, which in turn will help us to offer our services to more people in more places.

Education

Training tomorrow’s music therapists

Ever since Paul Nordoff and Clive Robbins started collaborating to develop their approach to music therapy, training and education have been a core part of our work. We’ve been formally training music therapists since 1974, giving them the latest skills, approaches and thinking to use the power of music therapeutically to help others.

For education, it was a year of transitioning out of the pandemic which dominated the previous two years, and in many respects a return to “business as usual”.

We have managed to incorporate the significant learning gained during the pandemic about working online, working in PPE, and about using technology into both teaching and music therapy delivery where it is helpful.

Master of Music Therapy (MMT) training programme

The Master of Music Therapy programme is our means of training musicians to become Health and Care Professions Council (HCPC) registered music therapists, with Nordoff and Robbins teaching bases in London, Manchester and Newcastle.

When the first lockdown happened, we moved all teaching to online, and paused all placements (student music therapy placements in partner organisations), which we worked hard to bring back as soon as it was safe to do so.

In person teaching started again in April 2021, but with tutors and students wearing PPE. The end of PPE and social distancing requirements in most contexts meant that in 2022 students again had in person access to a wide range of placements (although some were still required to wear PPE). It also meant that we could see each other’s faces again in teaching contexts, which has made a very welcome difference.

The music therapists of tomorrow – Our musical social activists

In 2022 we were able to hold our graduation ceremony at our London centre for the first time since Coronavirus. This marked the achievements of our 2020 to 2022 cohort, the group of students whose training was most significantly impacted by the pandemic.

We were delighted to see everyone graduate. Most of these graduates went on to join our Graduate Employment Scheme, and are now working for Nordoff and Robbins, delivering music therapy across the UK.

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We were delighted to be able to welcome a new cohort of London students in October (alongside our existing Manchester and Newcastle cohort, which moved into its second year on the programme). Among the new London students are two holders of the Sony Music Bursary, a full fee-waiver for students where financial barriers would otherwise have prevented them accessing the training.

These bursaries, along with a renewed focus within our curriculum on equality, diversity and the exercising of power within music therapy practice, form a key part of our organisational focus on Equality, Diversity and Inclusion (EDI).

Graduate research – our MPhil/PhD programme

Our part-time graduate research programme helps working music therapists and other experienced practitioners who use music in socially engaged ways to research their practice and develop research expertise.

By nurturing tomorrow’s researchers, we are helping to build the research base for music therapy and the social value of music.

The seminars and academic supervision components of this programme were moved entirely online with the arrival of Coronavirus. In October 2022 we were delighted to be able to host our first inperson doctoral seminar since. Opportunities to conduct in-person research in real-world settings also largely returned, meaning that students whose projects had been significantly impacted by the pandemic were able to make up lost ground.

It usually takes around six years for a student to complete their doctorate. We are very proud that Maren Metell completed this process in 2022 – the culmination of long-term research into music therapy with families with neurodiverse children. She has already published articles based on this work and we look forward to reading more from Dr Metell as she joins our alumni community.

Short courses

In 2022 we continued to offer the two online courses developed during the pandemic in partnership with FutureLearn.

One is an online version of our “Introduction to Nordoff and Robbins music therapy”, whilst the second is a course to help people who work in adult social care use music more within their care work. Both courses can be found at futurelearn.com

We are excited to be making use of this opportunity, it is already helping us to connect with more people in more places than ever before.

Looking ahead to next year, we are hoping to be able to reintroduce some in person short courses, so more people can learn about the ‘Nordoff Robbins approach’ for themselves.

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Research

When COVID-19 struck in March 2020, our research work was paused as we prioritised the use of our resources on activities that immediately contributed to the health and wellbeing of our clients and students.

Although we paused this work, research remained a core part of our mission. As we have emerged from the pandemic, we have taken the opportunity to develop a research strategy to help us ensure that our future research is as focused as possible on informing our delivery and education activities, and that it contributes to the wider world of music therapy research. This has paved the way for us to restart dedicated research activity in 2023, with an initial focus on our work in dementia care, helping us to understand better the ways in which our work has value for people.

How music therapy increased Janet’s confidence

Music has the power to bring people together, but it can also bring people out of themselves.

Janet has learning difficulties and lives in supported accommodation in Glasgow. A quiet person who enjoys her own company, she was shy and tentative when she started music therapy sessions with two other people three years ago.

In the beginning, she’d play the same things on the same small selection of instruments, and would only connect with her therapist, Mary, briefly before becoming distracted.

But in the moments that they played together, Mary could see Janet was really enjoying herself. Janet’s music was often quiet, and she would play with small arm movements. She could beat a steady pulse, and she enjoyed her music being matched and supported by the therapist, laughing at times.

And over time these moments have grown to the point where she uses a wider range of instruments to make music for longer and find new ways to express herself.

“Janet enjoys musical, playful, turn-taking games which often end with much laughter,” says Mary. “At the start of the sessions, she might sing the last word of a phrase in a low single tone. As her confidence has grown, she is slowly starting to use her voice more creatively and enjoys using her voice to make different playful sounds.”

Not only do the sessions bring the participants closer together, they’ve also increased Janet’s ability to interact with the people who support her at home.

Mary says: “I do not underestimate the importance of being listened to or of the musical bond that brings people together, building self-esteem, creativity and playfulness.”

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

Fundraising activities and performance

We are grateful to our committed supporters, donors, and volunteers for their unwavering support in 2022 – collectively raising over £5.5 million. This is the largest fundraising year since the charity was formed in the 1970s.

Thanks go to the BRIT Trust, People’s Postcode Lottery and the J. Brenda Hoskins Trust.

A big thank you to our first ever Mount Everest fundraisers for raising £49,617 to fund our work. Thank you to Nick Raphael, Harriet Raphael and Stephen Fitzmaurice for supporting Nordoff and Robbins with this epic challenge.

A return of an (almost) full events programme

We delivered a near pre pandemic events programme in 2022, and we were grateful to see so many of our sponsors and audience members back in support of Nordoff and Robbins.

Race Day

Nordoff and Robbins event calendar kicked off in April with one of the music industry’s favourite events, the Race Day. The sold out event welcomed Tysers as headline sponsor, and saw guests enjoy horse racing at one of the UK’s most historic courses, whilst networking and raising vital funds for their favourite music charity.

Wine Dinner

The annual Wine Dinner for the music industry had not been held in person since 2019, so it was a joy to see it return in May at the home of Berry Bros. & Rudd, Britain’s oldest wine merchant. We were delighted to welcome YouTube Music as headline sponsor for the first time at the event.

Golf Day

The Golf Day made an anticipated comeback at a new venue, the Lambourne Golf Club in Berkshire. Teams from the worlds of music, business and sport came together for a day packed with camaraderie and gentle competition. We saw sponsorship from Raymond Weil and Tysers, as well as 35+ golf hole sponsors, with branded banners across the course.

O2 Silver Clef Awards Lunch

After a 3-year hiatus because of the pandemic, we were excited to welcome back our flagship event on 1 July, the O2 Silver Clef Awards Lunch. Chosen by a panel of experts, the award winners included Alexis Ffrench, Becky Hill, Frankie Valli, Griff, Jools Holland, Kano, London Grammar, Peter Gabriel, Tems, Tom Walker and YUNGBLUD.

We received a very special donation of George Michael’s piano from the George Michael Estate. The piano was sold in a worldwide auction that took place both online and in the room, raising an incredible £200,000.

Carol Service

We ended the year on 13 December with the Carol Service which returned to being a fully live event, having been delivered virtually in 2020, and a hybrid live-virtual experience in 2021. The event was sponsored by Hipgnosis for the third year running and featured Nile Rodgers & CHIC and a memorable acoustic performance from Richie Sambora.

The year also saw the return of our third-party events (events ran by others in support of Nordoff and Robbins), including:

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

Partnerships

Partnerships are integral to Nordoff and Robbins’ fundraising and financial sustainability. 2022 was a record year, passing £1 million for the first time.

Part of this success was down to the brilliant event, Music Mudder. The music-inspired endurance event sees teams from across the music industry take on Camelot Events’ legendary ‘Nuts Challenge’ obstacle course. 2022 saw the likes of the Muddy Money Gang (Warner Music Group), The Hip Hunters (Hipgnosis) and The Meat Squad (MEATliquor) taking on the epic challenge. It raised an impressive £55,000 with 40 teams from across the music industry taking part.

Wasserman Music have confirmed their continued support to delivering Music Mudder in 2023.

PizzaExpress

In the second year of our partnership with PizzaExpress, we recorded 10 sessions of the social media series, Behind the Base. In each episode, artists share the impact of music on their lives, all whilst making their favourite pizza. The interview is wrapped up with an exclusive performance and discussion with a Nordoff and Robbins music therapist.

Across the year, over £185,000 of customer donations were received, including donations through a donation mechanic on the PizzaExpressLive ticketing platform.

PizzaExpress sponsored the Best Group Award at the 2022 O2 Silver Clef Awards. Employee initiatives included four members of staff running the London Marathon in October, while staff at the Rugby restaurant took part in a ‘Brave the Shave’ fundraiser.

Creating an environment for our people to thrive

In 2022 our focus was on continuing to create a culture of togetherness and belonging. Our intention is to provide clarity and a meaningful, human approach to working at Nordoff and Robbins.

Ongoing support, wellbeing, and learning and development for existing and new colleagues has developed a progressive, cohesive, and healthy environment where colleagues are engaged and valued.

Regular check ins and Deep Dives makes sure that everyone has the tools, knowledge and skills they need to flourish and succeed.

We continue to maintain regular and open two way communication, including the monthly ‘Ask us Anything’, as well as coffee and catch ups in small groups with the CEO, and regular organisational updates. ‘Nothing for you without you’ is our principle here, and makes sure everyone has the opportunity to share their views, ask questions and bring ideas.

Colleague survey

Our yearly Charity Pulse survey, which is externally benchmarked across the charity sector, fed back the following in 2022:

“Nordoff and Robbins continues to cultivate a strongly engaged workforce and retain excellent levels of staff satisfaction across many areas of working life. Nordoff and Robbins as a whole continues to perform extremely well against benchmarks.”

“Staff have overall increasingly reported raised morale for the last 4 years.”

NoRFest (previously know as our All Colleague Get Together)

NoRFest brings together the whole organisation across two days. Last year was a huge success, providing unity, collaboration, connection, shared vision and understanding of our mission, vision and values. As well as the opportunity to make lots of music.

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

The feedback was exceptionally positive after a few hard years during the pandemic left many people feeling isolated. We trialled a new format of hearing from many voices and many topics within the organisation, as well as plenty of work sharing and the opportunity to ask lots of questions.

2023 will build on this, taking the focus away from London by holding NoRFest in Manchester, amplifying voices and topics in the organisation, as well as plenty of learning and development, and continuous professional development (CPD).

Looking ahead – developing our people

2023 will see ongoing training and development, both from internal and external providers, and formal and informal CPD, to allow colleagues to access what they need, to learn at their own pace, and to give them every opportunity available to them.

Our Equity, Diversity, Inclusivity and Belonging (EDIB) work continues to grow and focus on real, tangible change that will benefit colleagues, clients and students both now and long into the future.

We will be benchmarking our work so far and going for Talent Inclusion and Diversity Evaluation (TIDE) accreditation following this.

The next phase of our culture plan will cement our values as a charity into valued behaviours. These will be embedded into the organisation, as well as making sure they are clearly defined and communicated in our recruitment, deep dives, policies, and all other areas of the colleague lifecycle.

Flexibility and agility will continue to drive a people first approach to our policies and colleagues. Personalisation and an understanding of the new (and existing) challenges our people face means we are able to flex, adapt, and tailor the support required with a human-to-human response, rather than process and procedure.

Structure, governance and management

Nordoff-Robbins Music Therapy is a registered charity in England and Wales (number 280960), a registered charity in Scotland (number SC048817) and is constituted as a charitable company limited by guarantee (registered in England and Wales with company number 1514616). The charity operates under the abbreviated name Nordoff and Robbins and is governed by its memorandum and articles of association dated 13 November 2008, updated to include references to Scotland on 10 October 2018.

Our Board of Trustees

The membership of the Board of Trustees comprises music industry leaders, people with business, financial, HR and legal expertise, and professionals who represent the sectors which the charity serves – this includes health and social care, educational and community arts professionals.

Members of the Board of Trustees, who are Directors for the purpose of company law and Trustees for the purpose of charity law, who served during the year up to the date of this report are:

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

Recruitment to our Board is through recommendation and appointment by a majority vote of the existing Trustees. New Trustees are given a formal induction, and all are encouraged to see our music therapy work firsthand and music therapy work is shared at every board meeting to ensure the work of our board is grounded in our mission.

The charity purchases Trustee indemnity insurance annually. For 2022, the premium was £7,452 and includes an insurance premium tax at 12%. No trustees were reimbursed for the costs of attending board meetings.

Senior Leadership Team

The Board of Trustees delegates the day-to-day administration of the charity to a Chief Executive Officer (CEO) who is responsible for providing leadership, strategic direction, management and financial control. The CEO and Trustees appoint a Senior Leadership Team to support the management of the charity.

At the end of 2022 this comprised:

Nordoff and Robbins is committed to a fair and appropriate reward policy for all staff, from the Chief Executive down, benchmarking against the charity and commercial sectors. Our priority is to attract the best candidates and get the right person in the right role at all levels of our organisation.

Pay for the Chief Executive and each member of our Senior Leadership Team is agreed by our Remuneration Committee. The committee is made up of members of our Board of Trustees. The CEO’s salary in 2022 was £118,120. One member of the Senior Leadership Team earned £8090,000, two members of the Senior Leadership Team earned £70-80,000 and three members earned £60-70,000.

Governance

Nordoff and Robbins has a strong and robust governance structure alongside the Board. There are four governance committees:

The Board of Trustees met 3 times in 2022 to review the activities of the charity. The CEO reports on all operational matters relating to Nordoff and Robbins nationwide as well as overall charity and other strategic matters.

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

The Directors of Music Services and the Chair of the Music Services Committee report on matters relating to our service delivery, quality assurance, training programmes and research. The Director of Fundraising reports on all fundraising events and initiatives brand and reputational matters, the CFO reports on the financial results and position of the Charity, and the Director of People reports on specific HR matters for which the Board has primary responsibility.

Public benefit

In drawing together our strategic plan and outlining our aims, objectives and future activities, we have referred to and complied with the duty in section 17(5) of the Charities Act 2011. This relates to having due regard to the Charity Commission’s published general guidance on public benefit. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.

Financial Review

Results for the year and financial position of the group

The results of the Charity and subsidiary companies for the year are shown in detail in the Consolidated Statement of Financial Activities on page 32. In summary, the consolidated total income was £7,639,693 (2021: £4, 097,797) of which £225,520 (2021: £237,901) was from investment income. 2022 income did not include any income from the government’s furlough scheme (2021: £125,257). Expenditure in the year totaled £7,383,228 (2021: £5,285,980) leaving a surplus before revaluation of investments of £256,465 (2021: deficit of £1,188,183). Unrealised losses of £1,305,716 (2021: gain of £681,136) were recognised on the investment portfolio.

The performance of the individual subsidiary undertakings is disclosed in note 2. The Charity wholly owns a subsidiary undertaking, Silver Clef Productions Limited and event sponsorship is channeled through this subsidiary along with funds relating to audio and visual rights. For the year ending 31 December 2022, Silver Clef Productions Limited made a net profit of £354,410 (2021: £104,692) which will be gift-aided to the charity in its entirety during 2023. Nordoff and Robbins has a 50% shareholding in the Music Industry Trusts Ltd. Since 2011, this company has been treated in the accounts as a joint venture.

Investment Policy

The management of the Charity’s investment fund is delegated to a professional investment manager. The Board’s investment policy is to aim for maximum growth in the capital value of the portfolio, whilst providing a steady and growing income stream for the Charity. The Board seeks to control risk through an appropriate diversification of asset classes within the portfolio, to include fixed interest bonds, UK and overseas equities, and cash. The Board’s investment policy includes ethical restrictions which preclude any direct investments where children and/or vulnerable adults are deemed exploited or at risk. The terms of reference of the Finance Committee include the review of investment performance, which it does three times per year. The performance of the portfolio is measured against an appropriate bespoke index which reflects the committee’s guidelines for different asset classes within the portfolio. The Trustees remain satisfied with the overall investment performance.

Reserves Policy

The Trustees review the Charity’s reserves policy annually in light of its strategic plans, past fundraising performance and future cash flow needs. There are 5 key areas that the Trustees have determined our reserves should support:

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

Free reserves

As the largest provider of music therapy in the UK after the NHS, Nordoff and Robbins has a significant duty of care to its music therapy clients across the country, many of whom present with complex physical, emotional and mental health needs.

There is a significant reliance from our clients on the music therapy they receive weekly, all year round, and in many of the geographical locations that we operate there is no alternative music therapy provision.

The Trustees therefore have determined that it is appropriate to hold free reserves equivalent to eighteen months’ music therapy services operating costs to support and safeguard the continuation of music therapy activities should the Charity suffer financially as a result of any deterioration in economic conditions.

The Trustees are of the view that this buffer would allow service provision to continue across the country whilst alternative funding is sought, following which in the worst-case scenario, a managed wind down of services could be undertaken. This approach would minimise the impact of withdrawal of services on our most vulnerable beneficiaries. Eighteen months’ operating costs relating to charitable music therapy activities equates approximately to free reserves of £7,332,000, based on 2022 delivery costs (excluding apportionment of one-off rebrand and website costs).

Designated funds

Trustees have designated funds in respect of the Charity’s ambitious new strategy and growth programme which is clearly mapped out within Nordoff and Robbins Strategic Plan 2019-2024. Key strands of the charity’s strategic expansion plan include:

At the start of the Charity’s five-year strategic plan, the Trustees opted to designate a sum of £1.5m to fund strategic projects over and above usual running costs. Unrealised gains on the investment portfolio are added to this designation each year, as this represents additional funds the Charity can use to invest in future developments. Unrealised losses on investments will reduce the value of the fund. During 2022 expenditure from this fund was used to develop a new brand and website, and losses on the investment portfolio also reduced the value of the fund, which at the end of the year stood at £1,703,108.

The designated fixed assets fund mirrors the net book value of the Charity’s tangible fixed assets and, subject to additions, will reduce as assets are depreciated over the course of their useful life. The Charity’s asset base is predominantly held as land and buildings used in the delivery of charitable activities. These assets are by nature highly illiquid and cannot be readily converted to cash in times of difficulty, and as such the Trustees do not consider fixed assets to contribute to free reserves. At the end of 2022, the designated fixed asset fund amounted to £1,721,820. The designated

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

maintenance fund is intended to cover the cost of planned and unplanned repairs, maintenance and major works to the charity’s land and buildings. The level of designated funds is reviewed annually by Trustees in the context of ongoing operational requirements, and the sum of £250,000 has been set aside for these purposes.

A fund has been designated to provide for the Charity’s commitment to our student beneficiaries. While the Masters and PHD students accepted onto our training courses invest some of their own funds into their education, the courses are heavily subsidised by the Charity. Our validation partner Goldsmiths requires us to have a high level of financial resilience in order to secure the medium-term future of the Masters and PHD programmes. The trustees have designated £1,400,000 to ensure that all students accepted onto our programmes are able to complete their studies, should the charity run into financial difficulties. This represents just over two years’ operating costs of our Masters and PHD programmes.

Analysis of designated funds at 31 December 2022:

Strategic development fund: £1,703,108

Education and Training continuity fund: £1,400,000

Fixed assets fund: £1,721,820

Maintenance fund: £250,000

Total designated funds: £5,074,928

Analysis of free reserves and total reserves at 31 December 2022

The Charity’s free reserves at 31 December 2022 were £6,314,292, an increase of £354,510 on the figure at 31 December 2021. Designated funds set aside by Trustees for specific purposes and to reflect that portion of reserves not readily convertible to cash, amounted to a further £5,074,928. Total reserves at 31 December 2022 were £11,389,220. Actual free reserves at 31 December 2022 were £6,314,292, 14% below the Trustees’ target of £7,332,000.

Fraud policy

Nordoff and Robbins is committed to a culture of honesty, integrity and propriety in the delivery of its services, fundraising activities and in the use of public funds.

Nordoff and Robbins takes a zero-tolerance approach towards fraud. We strive to instill a culture of ethical behaviour throughout the Charity and encourage awareness of risk where appropriate, to help mitigate such risk by strengthening preventative and detective controls. Employees are required to report all reasonable suspicions of actual or attempted fraud and such instances will be investigated.

Principal risks and uncertainties

The Charity manages risk in relation to core areas including:

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

The strategic risks facing the organisation were reviewed in 2022. The most significant risk areas were considered to be:

Throughout 2022, strategic risks as well as live issues related to the Covid-19 pandemic were discussed by the Finance Committee and at every Board meeting to ensure that the Board had sight of the headline risk areas and associated mitigations. Risks and issues were also reviewed monthly by the Senior Leadership Team.

Health and safety procedures are in place and are reviewed and updated annually, with updates provided to the Board of Trustees. During 2022 policies and procedures continued to be followed to reduce the risk presented by Covid-19 to the charity’s beneficiaries, people, and workplaces.

The impact of Covid-19 during 2022 was greatly reduced compared to 2020 and 2021, however was still significant and the charity managed multiple live issues at the beginning of the year in particular:

Events after the reporting period

There are no adjusting events after the balance sheet date.

Statement as to disclosure of information to the auditor

The trustees in office on the date of this report have confirmed, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. Each of the trustees have confirmed that they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

Auditor

Crowe U.K. LLP has indicated its willingness to continue in office.

The Trustees’ Report, including the strategic report on pages 2 to 27, was approved by the Board of Trustees and signed on their behalf by:

Howard Jones Date: 18[th] April 2023

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ANNUAL REPORT AND ACCOUNTS For the year ended 31 December 2022

Financial statements

Trustees’ responsibilities in the preparation of financial statements

The Trustees are 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.

Trustees’ responsibilities in the preparation of financial statements. Trustees (who are also Directors of Nordoff-Robbins Music Therapy for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards). Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. 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.

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Independent Auditor’s Report For the year ended 31 December 2022

Independent Auditor’s Report to the Members of Nordoff-Robbins Music Therapy

Opinion

We have audited the financial statements of Nordoff-Robbins Music Therapy for the year ended 31 December 2022 which comprise the Consolidated Statement of Financial Activities, the Group and Company Balance Sheets, the Consolidated Cash Flow Statement 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 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 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 trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 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.

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Independent Auditor’s Report For the year ended 31 December 2022

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 28, 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from

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Independent Auditor’s Report For the year ended 31 December 2022

irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulations and those regulations associated with Safeguarding.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition and completeness of voluntary and music services income, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

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 and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Alastair Lyon

Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor Reading Date: 26 April 2023

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CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT) For the year ended 31 December 2022

Notes
INCOME AND
ENDOWMENTS FROM:
Donations and Legacies
Charitable Activities
3
Other Trading Activities
Joint Venture Income
Joint Venture Income
attributable to Partners
Assets acquired from merger
Investments
Other
TOTAL
EXPENDITURE ON:
Raising Funds
Charitable Activities
Joint Venture Costs
Joint Venture Costs
attributable to Partners
Other
TOTAL
4
OPERATING
SURPLUS/(DEFICIT)
Net gains/(losses) on
Investments
NET
INCOME/(EXPENDITURE)
Transfers Between Funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED
FORWARD
14		 Unrestricted
General
funds
2022
£
Designated
Funds
2022
£
3,516,535
-
1,780,007
-
1,644,524
-
227,605
-
(113,803)
-
-
-
225,520
-
-
-
7,280,388
-
1,409,481
108,844
4,355,062
1,087,323
51,026
-
(25,513)
-
37,700
-
____5,827,75
6
1,196,167
1,452,632
(1,196,167)
(1,305,716)
-
146,916
(1,196,167)
549,435
(549,435)
696,351
(1,745,602)
5,617,941
6,820,530

6,314,292
5,074,928		 Restricted
Restricted
Funds
2022
£
359,305
-
-
-
-
-
-
-
359,305
-
359,305
-
-
-
359,305

-
-
-
-
-
-
-
Total
funds
2022
£
Total
funds
2021
£
3,875,840
1,741,686
1,780,007
1,472,626
1,644,524
379,476
227,605
281,704
(113,803)
(140,852)
-
-
225,520
237,901
-
125,256
7,639,693
4,097,797
1,518,325
887,580
5,801,690
4,354,645
51,026
3,258
(25,513)
(1,629)
37,700
42,126
7,383,228
5,285,980
256,465 (1,188,183)
(1,305,716)
681,136
(1,049,251)(507,047)
-
-
(1,049,251)
(507,047)
12,438,471 12,945,518
11,389,220 12,438,471

All of the above results are derived from continuing activities. The statement of financial activities includes all gains and losses recognised in the year.

Refer to note 15 for a full comparative statement of financial activities.

Nordoff-Robbins Music Therapy

32

GROUP AND COMPANY BALANCE SHEET

As at 31 December 2022 Nordoff-Robbins Music Therapy company no. 1514616

Group Charity
Notes 2022 2021 2022 2021
£ £ £ £
FIXED ASSETS
Tangible fixed assets 8 1,721,820 1,810,830 1,721,820 1,810,830
Listed investments 9a 7,643,522 9,732,686 7,643,522 9,732,686
Investments in subsidiaries
and joint ventures 9b 1 1 101 101
9,365,343 11,543,517 9,365,443 11,543,617
CURRENT ASSETS
Debtors 10 601,906 781,973 657,670 876,220
Cash on deposit 51,786 51 51,786 51
Cash at bank and in hand 2,137,857 668,514 1,648,011 429,066
2,791,549 1,450,538 2,357,467 1,305,337
CREDITORS: amounts falling
due within one year 11 (767,672) (555,584) (688,200) (515,175)
NET CURRENT ASSETS 2,023,877 894,954 1,669,267 790,162
NET ASSETS 14 11,389,220 12,438,471 11,034,710 12,333,779
UNRESTRICTED FUNDS
Designated Funds
Fixed Asset Fund 14 1,721,820 1,810,830 1,721,820 1,810,830
Maintenance Fund 14 250,000 250,000 250,000 250,000
Training Continuity Fund 14 1,400,000 1,400,000 1,400,000 1,400,000
Strategic Fund 14 1,703,108 3,359,700 1,703,108 3,359,700
General fund 14 6,314,292 5,617,941 5,959,782 5,513,249
TOTAL UNRESTRICTED
FUNDS 11,389,220 12,438,471 11,034,710 12,333,779
RESTRICTED FUNDS 14 - - - -
TOTAL FUNDS 11,389,220 12,438,471 11,034,710 12,333,779

Included within these results is a profit of £6,647 in respect of the charity (2021: loss of £1,131,611) These financial statements were approved and authorised for issue by the Trustees on and signed on its behalf by:-

Mr H Jones Trustee 18 April 2023

Nordoff-Robbins Music Therapy

33

CONSOLIDATED CASHFLOW STATEMENT For the year ended 31 December 2022

Notes
2022
£
CASH FLOWS FROM OPERATING ACTIVITIES
- Net cash (used in)/provided
by operating activities
(a)
CASH FLOWS FROM
INVESTING ACTIVITIES
- Dividends, interest and rents
from investments
225,520
- Purchase of property, plant &
equipment
(29,537)
- Sale of property, plant &
equipment
-
- Proceeds from sale of
investments
2,193,439
- Purchase of investments
(1,384,047)
- Movement in cash awaiting
re-investment
(25,944)
- of which acquired from
merger
-
___
Net cash provided by investing
activities
Change in cash and cash
equivalents in the reporting
period
Cash and cash equivalents
acquired from merger
Cash and cash equivalents at
the beginning of the reporting
period
(b)
Cash and cash equivalents at
the end of the reporting period
(b)		 2022
£
2021
£
541,647
237,901
-
-
2,084,591
(2,111,346)
64,994
-
_____
979,431
1,521,078
-
668,565
___
2,189,643
 2021
£
(1,260,514)
276,140
(984,374)
-
1,652,939
__
668,565_
___

Nordoff-Robbins Music Therapy

34

CONSOLIDATED CASHFLOW STATEMENT For the year ended 31 December 2022

(a) RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES:

Net surplus/(loss) for the
reporting period (as per the
statement of financial activities)
Depreciation charges
(Gains)/losses on investments
Dividends, interest and rents
from investments
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash (used in)/provided by
operating activities
(b) ANALYSIS OF CASH AND
CASH EQUIVALENTS
Cash at bank and in hand

Notice deposits (less than 3
months)
Total cash and cash
equivalents
(c) ANALYSIS OF CHANGES
IN NET DEBT
Cash at bank and in hand
Cash held on deposit
Total cash and cash
equivalents		 2022
£
(1,049,251)
118,547
1,305,716
(225,520)
180,067
212,088
__
541,647
2022
£
2,137,857
51,786
___
2,189,643
___
At 1 January
2022
£
668,514
51
__
668,565		 2021
£
(507,047)
112,150
(681,136)
(237,901)
(148,903)
202,323
_
(1,260,514)
_2021
£
668,514
51
_
668,565_
_
Cash flow
£
At 31 December
2022
£
1,469,343
2,137,857
51,735
51,786
_
_
1,521,078
2,189,643		 2021
£
(507,047)
112,150
(681,136)
(237,901)
(148,903)
202,323
_
(1,260,514)
_2021
£
668,514
51
_
668,565_
_
Cash flow
£
At 31 December
2022
£
1,469,343
2,137,857
51,735
51,786
_
_
1,521,078
2,189,643
__
2,189,643

Nordoff-Robbins Music Therapy

35

ACCOUNTING POLICIES

For the year ended 31 December 2022

Charity information

The Charity is a company limited by guarantee (registered number 1514616), which is incorporated in the UK. The address of the registered office is 2 Lissenden Gardens, London, NW5 1PQ. The principal activity of the charity is to bring the life-changing power of music to as many people as possible, through the delivery of:

Basis of preparation

The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2016), applicable UK accounting standards including the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the Companies Act 2006. The company meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). The principal accounting policies adopted in the preparation of the financial statements are as follows:

Going concern

The Trustees have reviewed the reserves held by the Charity, budgets and forecasts that cover the twelve month period from the date of this report and in their opinion consider that the Charity has the resources needed in order to continue to operate as a viable going concern.

Tangible fixed assets and depreciation

Tangible fixed assets costing more than £2,000 are capitalised and included at cost including any incidental expenses on acquisition.

Depreciation is provided using the following rates and bases to write off the tangible fixed assets over their estimated useful lives. Freehold property includes the land element and is not split between land and buildings because the difference in depreciation charge is not expected to be materially different:-

Freehold property 2% straight line
Short leasehold property improvements Over the term of the lease
Centre Equipment Straight line over the estimated useful life
ranging from 3 to 10 years with a full year’s charge in
the year of acquisition
Fixtures and fittings Straight line over the estimated useful life
ranging from 3 to 10 years with a full year’s charge in
the year of acquisition

Investments

Investments held as fixed assets are re-valued at mid-market value at the balance sheet date. It is the charity’s policy to keep valuations up to date such that when investments are sold there is no gain or loss arising from the revaluation of investments. As a result the Statement of Financial Activities only includes those unrealised losses or gains arising from the investment portfolio during the year. The investment in the wholly-owned subsidiary undertakings is held at cost less any provision for impairment. The Board’s investment policy is to aim for maximum growth in the capital value of the portfolio, whilst providing a steady, and growing, income stream for the Charity. Whilst the capital value of the portfolio declined due to adverse market conditions, investment income remained stable over the year. In the context of a turbulent market, the trustees consider the policy objectives to have been met for the year.

Subsidiary and associated undertakings and joint ventures

The charity has one wholly owned subsidiary undertaking: Silver Clef Productions Limited together with 50% ownership of a further undertaking, Music Industry Trusts Limited which has been classified as a joint venture. These undertakings have been actively trading throughout the year, and are incorporated in England, passing up their profits, either in whole or in part, to the charity by Gift Aid. These accounts

Nordoff-Robbins Music Therapy

36

ACCOUNTING POLICIES

For the year ended 31 December 2022

consolidate the results of Silver Clef Productions Limited, under the equity method of accounting. The results of Music Industry Trusts Limited are not consolidated as the Charity to date, has not had control.

A separate Statement of Financial Activities, or Income and Expenditure Account, for the charity itself is not presented because the charity has taken advantage of the exemptions conferred by Section 408 of the Companies Act 2006.

Silver Clef Productions Limited

The principal activity of the company is to carry out certain fundraising event functions, as well as to receive any funds relating to previous concert production and the selling of audio and visual rights on behalf of the parent charity.

Music Industry Trusts Limited

This undertaking’s trade is principally the promotion of the British Music Industry Awards. The Music Industry Trusts Limited is treated as a joint venture in the Charity accounts under the equity method because there is joint control by Nordoff and Robbins and BRIT Trust. The charity receives part of the profits of this undertaking by Gift Aid. This company distributes all of its profits by way of Gift Aid and at 31 December 2022 has net assets of £2 (2021: £2). The Music Industry Trusts Limited made a net donation of £88,289 to Nordoff and Robbins (2021: £139,223), represented by net joint venture income contributable to the charity in these accounts.

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from grants is recognised when the charity 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 and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Gifts donated for resale by the charity are recorded by the charity at their value at the time of realisation. No amounts are included in the financial statements for services donated by volunteers. Grants are accounted for under the performance model as permitted by the charity SORP. No Coronavirus Job Retention Scheme (CJRS) grant income was received in 2022 (2021: £125,256 of grants claimed under the CJRS included in other income).

Expenditure

Expenditure is included in the Statement of Financial Activities on the accruals basis, inclusive of any VAT which cannot be recovered.

Grants payable are charged in the year when the offer is conveyed to the recipient.

Support costs are those costs which have not been directly charged to an activity of the charity but nevertheless support those activities. In these accounts, support costs, including governance costs, have been allocated to charitable activities and expenditure on raising funds on a detailed apportionment methodology incorporating staff head count, floor space and organisational spend as cost drivers.

Governance costs are those costs that are deemed to relate to the governance of the charity and include external audit fees, governance-related trustee expenses, direct expenditure on national and international strategy development, and an appropriate proportion of support costs including senior management time.

Nordoff-Robbins Music Therapy

37

ACCOUNTING POLICIES

For the year ended 31 December 2022

Redundancy and termination payments are included within the accounts on an accruals basis, in line with other expenditure and measured at the best estimate of the expenditure required to settle the obligation at the reporting date.

Reserves

Restricted funds are subject to specific restrictions imposed by the donor. Designated funds are set aside by the Trustees for specific purposes, but would otherwise form part of the general funds. General funds are available to spend at the discretion of the Trustees in furtherance of the charitable objectives.

Financial instruments

The charity holds only financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments include debtors and creditors, and investments in non-puttable ordinary shares. Debtors and creditors are initially recognised at transaction value and subsequently measured at fair value. Note 16 provides more information on financial instruments where future cash flows are anticipated, with financial assets referring to fixed asset investments and debtor balances excluding prepayments, and financial liabilities referring to all creditor balances excluding deferred income and other taxation and social security.

Pension contributions

The charity makes pension contributions to staff under money purchase schemes. The amount charged to the Statement of Financial Activities in respect of pension costs and other post retirement benefits is the sum of contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

Operating lease and rental policy

Operating lease payments are recorded as expenditure or expenses of the related funds when paid or incurred. Neither an asset nor an obligation is recorded for operating leases. Accordingly, rental payments are recorded as an expense in the SoFA.

Significant judgements and estimates

The trustees consider that there are no material judgements in applying accounting policies or key sources of estimation uncertainty.

Nordoff-Robbins Music Therapy

38

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

1 MEMORANDUM OF ASSOCIATION AND TAXATION STATUS

The company is limited by guarantee and has no issued share capital. Every member, in pursuance of Clause 8 of the Revised Memorandum of Association, undertakes to contribute a sum not exceeding £1 in the event of the company being wound up whilst he or she is a member. The company is a charity for the purposes of Chapter 3 Part 11 of the Corporation Tax Act 2011 or Section 256 of the Taxation of Chargeable Gains Act 1992 and as such is exempt from taxation on its income to the extent that such income or gains are applied exclusively to charitable activities.

2 NET INCOME FROM TRADING ACTIVITIES OF SUBSIDIARIES

Silver Clef Productions Ltd Total 2021
£ £
Turnover 468,207 180,417
Cost of sales - -
GROSS PROFIT 468,207 180,417
Interest receivable 507 53
Administration costs (114,204) (75,778)
NET PROFIT 354,510 104,692
RETAINED PROFIT FOR THE YEAR
AND CARRIED FORWARD 354,510 104,692
The assets and liabilities of the subsidiaries were:
Silver Clef Productions Ltd Total 2021
£ £
Current assets 542,976 349,340
Current liabilities (188,366) (244,548)
Net assets 354,610 104,792
Share capital 100 100
Profit and loss account 354,510 104,692
Capital and reserves 354,610 104,792

The results of and balance sheet of Silver Clef Productions Limited is extracted from it’s published accounts for the year ended 31 December 2022.

Silver Clef Productions Limited, paid £109,501 to the parent charity in accordance with the terms of a cost-sharing agreement between the two entities covering the purchase of staffing and support costs.

Silver Clef Productions Limited will gift aid it’s entire profits of £354,510 to the parent charity during 2022.

Nordoff-Robbins Music Therapy

39

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

3 INCOME FROM CHARITABLE ACTIVITIES

Music services generated income
Training and research generated income
4
EXPENDITURE

Direct
costs
£
Expenditure on raising funds
1,398,190
Charitable Activities
Music Services
3,472,521
Training and Research
444,890
3,917,411
Joint Venture Net Cost
25,513
Other expenditure
37,700
Total Expenditure
5,378,814		 Grants
Payable
£
-
-
-
-
-
-
-		 2022
£
2021
£
1,549,558
1,254,455
230,449
218,171
1,780,007
1,472,626
Support
Costs
£
Total
2022
£
Total
2021
£
120,135
1,518,325
887,580
1,667,094
5,139,615
3,780,813
217,185
662,075
573,832
1,884,279
5,801,690
4,354,645
-
25,513
1,629
-
37,700
42,126
2,004,414
7,383,228
5,285,980

No grants payable or committed, including related costs, were made during the year (2021: £0).

No travel and subsistence costs incurred on behalf of the charity were reimbursed to any trustee during the year (2021: £0).

An amount of £7,452 (2021: £6,952) was paid by the charity in respect of the Trustees’ Indemnity Insurance premium.

5
SUPPORT COSTS
Support costs allocated to charitable activities include:
IT/ AV & Telecommunications
Publicity & Communications
Rebrand and new website
Premises & Operational Support
Human resources & staffing support
Depreciation
Governance costs
Other support costs		 2022
£
2021
£
186,963
138,656
601,912
344,084
347,996
-
155,062
121,315
275,635
179,720
118,547
112,150
132,456
159,374
185,843
143,673
2,004,414
1,198,972

Nordoff-Robbins Music Therapy

40

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

6
NET INCOME
Net income for the group is
stated after charging:
- Depreciation
- Payments due under operating leases
- Auditors Remuneration – Audit fees
- Relating to the parent charity
- Relating to subsidiaries
7 STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 2022
£
118,547
8,001
25,500
3,950
____
2022
£
4,247,938
444,326
207,738
4,900,002		 2021
£
112,150
35,607
23,700
3,635
____
2021
£
3,454,083
336,248
162,938
3,953,269

The total remuneration of key decision makers at the charity was £659,015 (2021: £562,621). This relates to the leadership team which at the year end comprised 6 Directors and the Chief Executive (2021:6 Directors and the Chief Executive). Staff costs include termination payments of £0 (2021: £28,960). No accrued annual leave was recognised (2021: £0).

The number of employees whose emoluments exceeded £60,000 are stated below:

£60,000 - £70,000
£70,000 - £80,000
£80,000 - £90,000
£110,000 - £120,000
erage number of employees during the year was 133 (2021:118)
e Full Time Equivalent (FTE) average number of employees at
ar end, including staff directors, being:-
Music therapists and other charitable staff
Fundraisers
Pension contributions for the highest paid employees
Retirement benefits were accruing to directors as follows:
Money purchase scheme		 2022
Number
3
2
1
1
2022
Number
101
15
116
£
27,908
Number
7		 2021
Number
3
2
0
1
2021
Number
93
11
104
£
23,921
Number
7

The average number of employees during the year was 133 (2021:118) with the Full Time Equivalent (FTE) average number of employees at the year end, including staff directors, being:-

Nordoff-Robbins Music Therapy

41

Nordoff-Robbins Music Therapy NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2016

No trustee or ex trustee received any remuneration (2021: none)

8
TANGIBLE FIXED
ASSETS
GROUP AND
CHARITY
Cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
Depreciation
At 1 January 2022
Charge in year
Eliminated on disposals
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021		 Freehold
property
£
4,076,524

4,076,524
2,368,573
81,530
-
2,450,103
1,626,421
1,707,951		 Short
leasehold
property
improve-
ments
£
389,280
389,280
337,076
26,104
-
363,180
26,100
52,204		 Centre
equipment
(incl. Tape
Library)
£
14,049
(14,049)
-
13,104
945
(14,049)
-
-
945		 Fixtures
and
fittings
£
155,581
29,537
(84,629)
100,489
105,851
9,968
(84,629)
31,190
69,299
49,730		 Total
£
4,635,434
29,537
(98,678)

4,566,293
2,824,604
118,547
(98,678)

2,844,473
1,721,820
1,810,830

42

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

9a
LISTED INVESTMENTS
GROUP AND CHARITY
Market value at 1 January
Additions
Sales proceeds
Realised and unrealised gains/(losses) on Investment assets
Movement in cash
Market value at 31 December
Investments comprise the following:
UK investments
Fixed interest
Equities
Money Market Instruments
Overseas investments
Fixed Interest
Equities
Property
Other assets
Cash awaiting re-investment		 2022
£
9,732,686
1,384,047
(2,193,439)
(1,305,716)
25,944
7,643,522
2022
£
874,304
2,898,723
700,000
4,473,027
368,020
2,040,736
2,408,756
130,717
572,684
58,338
7,643,522		 2021
£
9,089,789
2,111,346
(2,084,591)
681,136
(64,994)
9,732,686
2021
£
992,764
3,803,044
1,550,000
6,345,808
250,112
2,423,891
2,674,003
143,990
536,490
32,395
9,732,686

The following investments each comprised more than 5% of the portfolio's value at the end of 2022; Goldman Sachs Sterling Reserves 9%, Vanguard Funds PLC S&P 500 9% (2021; Goldman Sachs Sterling Reserves 16%, Vanguard Funds PLC S&P 500 7%)

Nordoff-Robbins Music Therapy

43

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

9b INVESTMENTS IN SUBSIDIARIES AND JOINT VENTURES

In addition to the investments listed above the charity also holds investments in subsidiaries and joint ventures as follows:

GROUP Joint Venture Joint Venture
£
Cost
At 1 January 2022 1
At 31 December 2022 1
CHARITY Joint Venture Subsidiaries Total
£ £ £
Cost
At 1 January 2022 1 100 101
At 31 December 2022 1 100 101
he following was a subsidiary undertaking at the year end:
Country of Holding Proportion Nature of business
incorporation held
Silver Clef Productions UK Ordinary 100% Events production and
Limited share fundraising
Company no. 02796952
Registered office:
2 Lissenden Gardens
London
NW5 1LP

The following was a subsidiary undertaking at the year end:

The following was a joint venture at the year end:

Country of Holding Proportion Nature of business
incorporation held
Music Industry Trusts UK Ordinary 50% Promotion of British Music
Limited share Industry Awards

The profit of Music Industry Trusts Limited is donated under Gift Aid to its shareholders each year.

Nordoff-Robbins Music Therapy

44

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

10
DEBTORS
Group
2022
£
2021
£
Trade debtors
278,813
407,520
Amounts owed by subsidiary
undertakings
-
-
Amounts owed by joint venture
-
-
Other debtors
91,250
140,220
Prepayments and accrued
income
231,843
234,233
601,906
781,973
11
CREDITORS: Amounts falling due within one year
Group
2022
£
2021
£
Trade creditors
210,665
106,455
Other taxation and social
security
152,529
106,545
Other creditors
65,976
55,513
Accruals and deferred income
338,502
287,071
767,672
555,584		 Charity
2022
£
2021
£
225,683
297,629
108,894
204,138
-
-
91,250
140,220
231,843
234,233
657,670
876,220
Charity
2022
£
2021
£
210,665
106,455
147,007
99,636
35,976
25,513
294,552
283,571
688,200
515,175

Within accruals and deferred income is £123,230 (charity and group) of deferred income (2021: £139,600 charity and group). In the parent charity, this relates to a £23,006 of MMT funding paid in advance but applicable to 2023, £5,700 relating to fundraising events taking place in 2023, £93,524 representing advance payment for music therapy services, and £1,000 advance payment of PHD fees. In the subsidiary, this relates to £40,000 of events sponsorship relating to 2023. During 2022, £57,587 of deferred income carried forward from 2021 in respect of advance payment for music therapy services was released, along with £74,018 of funding for the MMT course and othe projects, as well as £7,995 relating to fundraising events (charity and group).

Within creditors is £35,976 of outstanding pension contributions (2021: £22,513).

12 CAPITAL COMMITMENTS

There were no capital commitments at 31 December 2022 (2021: £0).

13 OPERATING LEASE COMMITMENTS

At 31 December the company was committed to make the following total minimum lease payments under non-cancellable operating leases for each of the future periods stated:

Centre Equipment Land and Buildings Land and Buildings
Total future minimum lease 2022 2021 2022 2021
payments due in: £ £ £ £
Not later than one year 1,305 2,202 409 375
Later than one year not less than
five years 700 461 - -

Nordoff-Robbins Music Therapy

45

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

14 RESERVES OF THE GROUP

Movements in funds – GROUP 2022

At 1 Jan 2022
£
General Fund
5,617,941
Designated Funds
Fixed Asset Fund
1,810,830
Maintenance Fund
250,000
Training Continuity
Fund
1,400,000
Strategic Fund
3,359,700
6,820,530
Total unrestricted funds
12,438,471
Restricted funds
Music Therapy
Services
-

Total restricted funds
-
Total funds
12,438,471		 Income
£
7,280,388
-
-
-
-
-
7,280,388
359,305
359,305
7,369,693		 Expenditure
£
(5,827,756)
(118,547)
(64,669)
(662,075)
(350,876)
(1,196,167)
(7,023,923)
(359,305)
(359,305)
(7,363,228)		 Net
investment
losses
£
Transfers
£
At 31 Dec
2022
£
(1,305,716)
549,435
6,314,292
-
29,537
1,721,820
-
64,669
250,000
-
662,075
1,400,000
- (1,305,716)
1,703,108
-
(549,435)
5,074,928
(1,305,716)
- 11,389,220
-
-
-
-
-
-
(1,305,716)
- 11,139,220



Nordoff-Robbins Music Therapy

46

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

Movements in funds – CHARITY 2022

At 1 Jan 2022
£
General Fund
5,513,249
Designated Funds
Fixed Asset Fund
1,810,830
Maintenance Fund
250,000
Training Continuity
Fund
1,400,000
Strategic Fund
3,359,700
6,820,530
Total unrestricted funds
12,333,779
Restricted funds
Music Therapy
Services
-

Total restricted funds
-
Total funds
12,333,779		 Income
£
7,025,868
-
-
-
-
-
7,025,868
359,305
359,305
7,385,173		 Expenditure
£
(5,823,054)
(118,547)
(64,669)
(662,075)
(350,876)
(1,196,167)
(7,019,221)
(359,305)
(359,305)
(7,378,526)		 Net
investment
losses
£
Transfers
£
At 31 Dec
2022
£
(1,305,716)
549,435
5,959,782
-
29,537
1,721,820
-
64,669
250,000
-
662,075
1,400,000
- (1,305,716)
1,703,108
-
(549,435)
5,074,928
(1,305,716)
- 11,034,710
-
-
-
-
-
-
(1,305,716)
- 11,034,710

Nordoff-Robbins Music Therapy

47

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

Movements in funds – GROUP 2021

At 1 Jan 2021
£
General Fund
6,693,974
Designated Funds
Fixed Asset Fund
1,922,980
Maintenance Fund
250,000
Training Continuity
Fund
1,400,000
Strategic Fund
2,678,564
6,251,544
Total unrestricted funds
12,945,518
Restricted funds
Music Therapy
Services
-

Total restricted funds
-
Total funds
12,945,518		 Income
£
3,636,399
-
-
-
-
-
3,636,399
461,398
461,398
4,097,797		 Expenditure
£
(4,080,323)
(112,150)
(58,756)
(573,353)
-
(744,259)
(4,824,582)
(461,398)
(461,398)
(5,285,980)		 Net
investment
gains
£
681,136
-
-
-
-
-
681,136
-
-
681,136		 Transfers
£
At 31 Dec
2021
£
(1,313,245)
5,617,941
-
1,810,830
58,756
250,000
573,353
1,400,000
681,136
3,359,700
1,313,245
6,820,530
- 12,438,471
-
-
-
-
- 12,438,471


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48

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

Movements in funds – CHARITY 2021

At 1 Jan 2021
£
General Fund
6,532,710
Designated Funds
Fixed Asset Fund
1,922,980
Maintenance Fund
250,000
Training Continuity
Fund
1,400,000
Strategic Fund
2,678,564
6,251,544
Total unrestricted funds
12,784,254
Restricted funds
Music Therapy
Services
-

Total restricted funds
-
Total funds
12,784,254		 Income
£
3,688,753
-
-
-
-
-
3,688,753
461,398
461,398
4,150,151		 Expenditure
£
(4,076,105)
(112,150)
(58,756)
(573,353)
-
(744,259)
(4,820,364)
(461,398)
(461,398)
(5,281,762)		 Net
investment
gains
£
681,136
-
-
-
-
-
681,136
-
-
681,136		 Transfers
£
At 31 Dec
2021
£
(1,313,245)
5,513,249
-
1,810,830
58,756
250,000
573,353
1,400,000
681,136
3,359,700
1,313,245
6,820,530
- 12,333,779
-
-
-
-
- 12,333,779

Analysis of net assets between funds

Funds at 31 December 2022 are represented by:

GROUP

General Designated Restricted
Fund Funds Funds Total Funds
£ £ £ £
Tangible Fixed Assets - 1,721,820 - 1,721,820
Investments 4,290,415 3,353,108 - 7,643,523
Net current assets 2,023,877 - - 2,023,877
6,314,292 5,074,928 - 11,389,220

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49

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

CHARITY

General Designated Restricted
Fund Funds Funds Total Funds
£ £ £ £
Tangible Fixed Assets - 1,721,820 - 1,721,820
Investments 4,290,515 3,353,108 - 7,643,623
Net current assets 1,669,267 - - 1,669,267
5,959,782 5,074,928 - 11,034,710
nds at 31 December 2021 are represented by:
OUP
General Designated Restricted
Fund Funds Funds Total Funds
£ £ £ £
Tangible Fixed Assets - 1,810,830 - 1,810,830
Investments 4,722,987 5,009,700 - 9,732,687
Net current assets 894,954 - - 894,954
5,617,941 6,820,530 - 12,438,471
ARITY
General Designated Restricted
Fund Funds Funds Total Funds
£ £ £ £
Tangible Fixed Assets - 1,810,830 - 1,810,830
Investments 4,723,087 5,009,700 - 9,732,787
Net current assets 790,162 - - 790,162
5,513,249 6,820,530 - 12,333,779

Funds at 31 December 2021 are represented by:

GROUP

CHARITY

Designated funds have been set aside by the Trustees as follows:

The Fixed Asset Fund represents the net book value of all tangible fixed assets held. The net effect of all additions, disposals and depreciation are transferred to this fund.

The Maintenance Fund has been designated to cover the costs of planned and unplanned repairs and maintenance to the charity’s buildings.

The Strategic Development Fund has been designated as part of the charity’s long term strategic plan to enable the charity to support both its ongoing activities and its growth programme in the future. Investment gains and losses are also charged against this fund.

The training continuity fund has been designated to safeguard the continuity of study programmes for the charity’s masters and PHD students.

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50

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

15 COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

Notes
INCOME AND
ENDOWMENTS FROM:
Donations and Legacies
Charitable Activities
3
Other Trading Activities
Joint Venture Income
Joint Venture Income
attributable to Partners
Assets acquired from merger
Investments
Other
TOTAL
EXPENDITURE ON:
Raising Funds
Charitable Activities
Joint Venture Costs
Joint Venture Costs
attributable to Partners
Other
TOTAL
4
OPERATING
SURPLUS/(DEFICIT)
Net gains/(losses) on
Investments
NET
INCOME/(EXPENDITURE)
Transfers Between Funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED
FORWARD
14		 Unrestricted
General
funds
2021
£
Designated
Funds
2021
£
1,280,288
-
1,472,626
-
379,476
-
281,704
-
(140,852)
-
-
-
237,901
-
125,256
-
3,636,399
-
849,258
38,322
3,187,310
705,937
3,258
-
(1,629)
-
42,126
-
____4,080,323
744,259
(443,924)
(744,259)
681,136
-
237,212
(744,259)
(1,313,245)
1,313,245
(1,076,033)
568,986
6,693,974
6,251,544

5,617,941
6,820,530		 Restricted
Restricted
Funds
2021
£
461,398
-
-
-
-
-
-
-
461,398
-
461,398
-
-
-
461,398

-

-
-
-
-

-

-
 Restricted
Restricted
Funds
2021
£
461,398
-
-
-
-
-
-
-
461,398
-
461,398
-
-
-
461,398

-

-
-
-
-

-

-
 Total
funds
2021
£
1,741,686
1,472,626
379,476
281,704
(140,852)
-
237.901
125,256
4,097,797
887,580
4,354,645
3,258
(1,629)
42,126
5,285,980
(1,188,183)
681,136
(507,047)
-
(507,047)
12,945,518
12,438,471

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NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

16 FINANCIAL INSTRUMENTS

Group Charity
2022 2021 2022 2021
£ £ £ £
1Financial assets measured at
fair value 7,643,522 9,732,686 7,643,522 9,732,686
Financial assets measured at
amortised cost 2,696,968 1,371,277 2,262,886 1,226,076
Financial liabilities measured at
amortised cost 604,442 415,983 564,970 375,574

Income in respect of financial instruments is summarised below. There were no other expenses, gains or losses associated with financial instruments

Group Charity
2022 2021 2022 2021
£ £ £ £
Total interest income for financial
assets held at amortised cost 3,792 123 3,291 70
Investment income at fair value 221,649 237,778 221,649 273,778

17 RELATED PARTIES

Ultimate control of Nordoff and Robbins rests with its Board of Trustees, as detailed in the Trustees’ Annual Report.

The charity’s wholly owned subsidiary, Silver Clef Productions Limited, paid £109,501 (2021: £71,559) to the parent charity in accordance with the terms of a cost-sharing agreement between the two entities covering the purchase of staffing and support costs. Silver Clef Productions Limited will gift aid its profits of £354,510 to the parent charity during 2023. A balance of £463,404 was owing from Silver Clef Productions at 31 December 2022 (2021: £308,831).

Nordoff and Robbins has a 50% shareholding in Music Industry Trusts Limited (MITS) which is considered to be a joint venture with the BRIT Trust as there is joint control. During the year, MITS had one director, David Munns, in common with Nordoff and Robbins. MITS donated £88,289 (2021: £139,223) by gift aid to Nordoff and Robbins in 2022. At the year-end Nordoff and Robbins owed £27,345 to the MITS (2021: £0).

David Munns is a common Trustee of the BRIT Trust. In 2022, Nordoff and Robbins received donations of £400,000 (2021: £400,000) from the BRIT Trust.

Howard Jones is a Trustee of Nordoff and Robbins and a partner at Sheridans who were paid £1,570 during the year for legal work relating to international trademarks and intellectual property rights (2021: £2,950). £1,570 was owing to Sheridans at the year end (2021: £0).

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NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

Neil Warnock is a Trustee of Nordoff and Robbins and chair of the Royal Albert Hall 150th Year committee. During the year the Royal Albert Hall were paid 1 £1,400 for the rental of the Hall in 2023 (2021: £1,800). No amounts were owing at the year end (2021: £0).

Graham Bell is a Trustee of Nordoff and Robbins and a Director of Guitar Guitar, a music retailer from whom £1,895 of instruments were purchased in 2022 (2021:£1,226). £50 was owing at the year end (2021: £0).

Donations from Trustees during the year totalled £15,840 (2021: £17,500).

The charity sublets land from the BRIT School for Performing Arts and Technology and have built a small unit on it and benefit from some shared facilities which the BRIT School generously provide. Additionally the Charity buys into some of the BRIT school’s maintenance contracts.

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53