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## **ALDEBURGH MUSIC ENDOWMENT FUND**
**Registered Charity Number: 282610**
## **FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2021**
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## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **INDEX**
## **Page No:**
**1 LEGAL AND ADMINISTRATIVE DETAILS 2 – 6 TRUSTEES’ REPORT**
**7 – 9 INDEPENDENT AUDITORS’ REPORT 10 STATEMENT OF FINANCIAL ACTIVITIES 11 BALANCE SHEET 12 STATEMENT OF CASH FLOWS 13 – 23 NOTES TO THE ACCOUNTS**
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**ALDEBURGH MUSIC ENDOWMENT FUND**
**LEGAL AND ADMINISTRATIVE DETAILS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
**CHARITY REGISTRATION NO.** 282610 **TRUSTEES** 1. Trustees of Britten Pears Arts holding the offices of Chairman or Treasurer: Sir Simon Robey (Chairman) David Robbie (Treasurer) 2. Nominated Trustees: Garth Pollard Stephen Swift Sarah Zins **PRINCIPAL OFFICE** Snape Maltings Concert Hall, Snape, Saxmundham, Suffolk IP17 1SP **AUDITORS** RSM UK Audit LLP, Blenheim House, Newmarket Road, Bury St Edmunds, Suffolk IP33 3SB **COMMERCIAL BANKERS** Barclays Bank Plc, Suffolk Coastal Group, 4 Church Street, Woodbridge, Suffolk IP12 1DJ National Westminster Bank Plc, 2 Tavern Street, Ipswich, Suffolk IP1 3BD **MARKET INVESTMENT AND FUND** CCLA Investment Management Limited, Senator House, 85 Queen **MANAGERS** Victoria Street, London EC4V 4ET **LEGAL ADVISORS** Prettys Solicitors, 25 Elm Street, Ipswich, Suffolk IP1 2AD BDB Pitmans, One Bartholomew Close, London, EC1A 7BL **INVESTMENT PROPERTY** Fenn Wright, 1 Buttermarket, Ipswich, Suffolk IP1 1BA **ADVISORS** Gerald Eve, 72 Welbeck Street, London W1G 0AY
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## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **TRUSTEES’ REPORT**
The Trustees present their report along with the financial statements of the Charity for the year ended 31 March 2021. In setting objectives, developing strategies and undertaking activities, the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit.
The Charity meets the definition of a public benefit entity under the Charities SORP (FRS 102) with all aspects of public benefit centring on the provision of financial support to meet the aims and objectives of Britten Pears Arts a separately registered charity (registration number 261383) which was also Aldeburgh Music Endowment Fund’s ultimate parent for group consolidation purposes.
On 31 March 2021 a group reorganisation took place and the assets and liabilities of the Aldeburgh Music Endowment Fund were transferred to Britten Pears Arts. The activities of the charity will continue within Britten Pears Arts.
The information given on page 1 forms part of this report.
## **Structure, Governance and Management**
## **Status and Governing Instrument**
Aldeburgh Music Endowment Fund was established in England as an unincorporated association under a Trust Deed dated 30 March 1981 with a Charity Commission registration number of 282610. Britten Pears Arts was the primary and, as long as it exists, exclusive beneficiary of the income and assets of the Charity. For these purposes, income is deemed to include and permit the payment of capital unless otherwise restricted by the donor.
## **Trustees**
During the year, Trustees were appointed on the following basis:
- the Chairman and Treasurer of Britten Pears Arts were automatically elected;
- Britten Pears Arts may appointed up to four additional nominated Trustees for a specified term not to exceed three years. At any time during the period of office, the nominated Trustees can be re-appointed; and
- if the total number of Trustees should fall below three, the Trustees could appoint one or more new Trustees to bring their number up to three.
Nominated Trustees were appointed following a selection process designed to enhance the technical skills and experience of the Trustees as a whole and tended to be persons already familiar with the aims and objectives of Britten Pears Arts. New Trustees were provided with an induction programme involving all aspects of Britten Pears Arts’ activities and its relationship with the Charity. Trustees who served during the year, are listed on page 1.
## **Organisational Structure**
The activities of the Charity are ultimately controlled by its Trustees, who make policies and decisions regarding assets and disposition of income. The Charity is now dormant.
The Charity’s day-to-day management and administrative functions were carried out by Britten Pears Arts staff headed by its Chief Executive, supported by an Audit and Finance Committees, both of which have representation from the Charity.
## **Subsidiary**
Until 31 March 2021, Elm Property Investments (Snape Maltings) Limited was a wholly owned subsidiary of the Charity. The company owns a storeroom and the freehold of a number of leasehold private residential properties at Snape Maltings. It receives a rent for the storeroom and ground rent from leaseholders. Profit available for distribution was donated to the Charity.
As the Charity’s accounts are consolidated into the financial statements of Britten Pears Arts, in prior years exemption has been taken under FRS 102 following paragraph 139.1 of the Charities Act 2011 to exclude the requirement for the Charity to consolidate the accounts of its subsidiary into its own financial statements.
Elm Property Investments (Snape Maltings) Limited became a direct subsidiary of Britten Pears Arts with effect from 31 March 2021 following the group reorganisation. Further details of the subsidiary are found in Note 12.
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## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **TRUSTEES’ REPORT** _**(continued)**_
## **Key Management Personnel**
The Charity’s key management personnel consisted of all Trustees together with Roger Wright (Chief Executive), Stephen Pugh (Chief Financial Officer, appointed 22 July 2020), Terry Comer (Head of Finance, retired 30 June 2020) and Harry Young (General Manager) who were all employed and remunerated by Britten Pears Arts. No salaries were paid by the Charity to its Trustees (2020: £nil) and no expenses were paid by the Charity to its Trustees (2020: £nil).
## **Objectives and Activities**
## **Aims**
The Charity was established to provide financial support, property and facilities to Britten Pears Arts.
## **Objectives for the Year**
The main objectives for the year were to:
- provide grants to support Britten Pears Arts in achieving its own objectives;
- hold appropriate land and property and to make loans available to Britten Pears Arts and other Group members in pursuit of their own objectives;
- invest the Charity’s assets so as to give a satisfactory rate of return;
- balance investment exposure between growth and risk; and
- to complete the merger with Britten Pears Arts.
## **Achieving Objectives**
The Trustees achieve their objectives by the:
- release of grant funding to Britten Pears Arts through the year in line with the needs of that organisation;
- retention of land and property for the Group, ensuring it is properly maintained and in good repair;
- purchase of new land and property where such action enables Britten Pears Arts to better undertake its activities;
- use of leading fund managers to provide an acceptable degree of exposure in market-based investments;
- use of local professional property agents to identify potential shop tenants and achieve satisfactory levels of rental income;
- retention of appropriate levels of cash as part of its balanced investment portfolio and ensuring that the Charity is able to respond to favourable investment opportunities; and
- with the assistance of professional advisers and working with Britten Pears Arts, to implement the merger of the charities to be completed by 31 March 2021.
## **Achievements and Performance**
## **Market Investments**
Dividend income received in the year was £127,900 (2020: £156,837). Market investments were increased by £14,189 (2020: £nil) during the year. There were no sales in either the current or prior years. The revaluation of market investments as at 31 March 2021 generated an unrealised gain of £865,718 (2020: loss of £63,344).
## **Investment Properties**
Shops and office space owned by the Charity generated £69,934 (2020: £83,195) in the year from tenants. The empty investment property at September 2019 has a new tenant, a registered Charity, that moved in during December 2020.
## **Donations and legacies**
The Trustees gratefully acknowledge the receipt of donations and legacies from its supporters. In the year, donations and legacies totalling £1,024,692 were recognised (2020: £837,846). Further detail is provided in Note 3.
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## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **TRUSTEES’ REPORT** _**(continued)**_
## **Grants to Britten Pears Arts**
During the year, the Charity made core and project grants to Britten Pears Arts of £47,890 (2020: £533,060) allowing this charity to provide, alongside other activities, 10 places for participants on the Britten–Pears Young Artist Programme.
All assets and liabilities of the Charity were transferred into Britten Pears Arts as at 31 March 2021.
## **Financial Review**
## **Reserves Policy, Creation and Use**
The terms of the Trust Deed allow unexpended income to be added to capital where the Trustees consider this to be appropriate. The Trustees have the power to pay out capital unless otherwise restricted by the donor. The Trustees have adopted a number of principles to act as guidelines in the creation and use of reserves with the aim of increasing reserves and investment income over the long term while recognising there will be years in which grants to Britten Pears Arts may require reserves to be reduced in support of high-cost activities such as a fully staged opera.
To achieve long-term stability a Contingency Reserve was built with the target of reaching a capital sum of £950,000 to cover known and likely costs payable over a notional 12 to 24-month period during which the Group would be restructured following the occurrence of one or more unforeseen risks such as the loss of support from key funders. At 31 March 2021, immediately prior to the transfer of assets and liabilities to Britten Pears Arts, this reserve amounted to £947,752 (2020: £949,952). More detail regarding reserves and how they may be applied are set out in Notes 16 and 17.
Total reserves at 31 March 2021, immediately prior to the transfer of assets and liabilities to Britten Pears Arts, amounted to £16,598,027 (2020: £14,507,951). Restricted reserves closed at £7,509,838 (2020: £6,795,905) and Endowment reserves totalled £9,088,189 (2020: £7,712,046).
Typically, free reserves represent unrestricted funds less amounts tied up within fixed assets and committed future spend. Given the nature of the Charity the expendable aspect of the endowment, less amounts tied up in fixed assets of £4,679,133, effectively equates to free reserves. Free reserves at 31 March 2021, immediately prior to the transfer of assets and liabilities to Britten Pears Arts, were therefore £1,331,320 (2020: £444,832).
## **Principal Funding Sources and Expenditure**
The Charity’s principal funding sources in the year were rental income from its properties, dividend income generated by market investments and legacies. Details of principal funding sources can be found in Notes 3, 4 and 5.
The main area of expenditure is the provision of grants to Britten Pears Arts in line with that organisation’s needs and as previously agreed by the Charity’s Trustees as part of an annual budgeting process. During the year £47,890 was paid to Britten Pears Arts (2020: £533,060). In March 2020 a loan of £2,000,000 to Snape Maltings Trading Limited was assigned to Britten Pears Arts as part of the group reorganisation and merger. On 31 March 2021 the reorganisation completed with the transfer of the Charity’s assets and liabilities to Britten Pears Arts.
## **Principal Risks and Uncertainties**
The Trustees undertook a formal risk management process to review business risks and management strategies. This involved the review of the types of risks the Charity faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying means of mitigating the risks. This work was collated into a risk register for the Group which is reviewed at least annually.
The main source of uncertainty since March 2020 was the Covid-19 pandemic, which affected the commercial activity of retail tenants while also impacting on investment market volatility.
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## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **TRUSTEES’ REPORT** _**(continued)**_
## **Investment Policies**
The Trust Deed authorises the Trustees to make any investment they consider to be beneficial. The Trustees developed an investment policy which was kept under review and provided income and capital growth targets for property and market investments and a framework against which risk was managed. The policy required the Trustees to meet their investment advisors at least once each year to monitor performance and to review strategy.
## I _nvestment Properties_
The Trustees invested in commercial property ancillary to that used by Britten Pears Arts in pursuit of its charitable objects. Should vacant periods arise, local agents were appointed to manage new tenancy advertising and to provide advice regarding rent levels.
## _Market Investments_
The Trustees took the view that market investments administered through CCLA Investment Management Limited are an appropriate way of investing funds for the long term. Funds were selected which provide swift and penaltyfree access should the need arise.
In the context of stock market movements during the year, and in a period of continued low deposit interest rates, the Trustees were satisfied that CCLA served the Charity’s interests by providing a suitably secure vehicle within which to maintain and increase investment capital while generating sufficient returns to allow it to be a significant source of income.
## **Fundraising**
Sections 13 and 14 of the Charities Act 2016 address public concern about how charities raise funds. The Charity Commission has issued guidance requiring trustees to confirm that fundraising activities are compliant with standards set out in the Code of Fundraising Practice as well as those required under other guidelines and legislation covering areas such as data protection.
## _Monitoring fundraising activities_
The Head of Fundraising for Britten Pears Arts monitors activities undertaken by this department across all Group entities. A monthly report is provided to the Chief Executive and each meeting of Britten Pears Arts’ Council includes a review of activities undertaken by the Fundraising team. During the year, all fundraising activities, including those specific to the Charity such as legacies, were performed by Britten Pears Arts’ staff. No professional fundraisers were used to carry out fundraising activities on behalf of the Charity or any Group entity. Consequently, no fees or commission was paid to professional fundraisers (2020: £nil).
## _Voluntary self-regulation_
The Fundraising Regulator is an independent regulator of charitable fundraising, established to strengthen the system of regulation and restore public trust in the not-for-profit sector. The Group, through Britten Pears Arts, has voluntarily registered with the Fundraising Regulator and supports the aims and objectives of this organisation.
## _Compliance with standards_
The Charity’s fundraising activity complies with all relevant legislation and regulation, including the EU General Data Protection Regulation, which came into force in May 2018, and the Privacy and Electronic Communications Regulations 2003. The Trustees are not aware of any breaches of the Code of Fundraising Practice or other standards.
## _Complaints relating to fundraising activities_
The Charity has a policy regarding complaints received in relation to its fundraising activities. No complaints were received in the year (2020: none).
## _Vulnerable people, unreasonable behaviour and undue pressure_
The Charity, through Britten Pears Arts website and printed brochures, encourages members of the public to consider leaving a legacy. The Charity has never used telephone or doorstep methods to induce donations from members of the public and has stopped sharing its data with other organisations. Existing supporters and potential donors are required to provide their prior consent to the use of their data, particularly in relation to receiving communications about future events. The Charity does not send unsolicited mail and potential donors have the opportunity to opt out of contact at any time.
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## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **TRUSTEES’ REPORT** _**(continued)**_
## **Plans for Future Periods**
As explained on page 2 the assets and liabilities of The Aldeburgh Music Endowment Fund were transferred to Britten Pears Arts on 31 March 2021 as part of a group reorganisation. The activities of the charity continue within Britten Pears Arts. There are no current plans to wind up the charity as it may still be the recipient of legacies and other funds intended for Britten Pears Arts. This position will be kept under review.
## **Statement of Trustees’ Responsibilities**
The Trustees are responsible for preparing the Trustees’ Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources for that year.
In preparing those financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the Charity and which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of its Trust Deed.
The Trustees are responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware:
- there is no relevant audit information of which the auditors are unaware; and
- Trustees have taken all steps they ought to have taken to make themselves aware of any relevant audit information, and to establish that the auditors are aware of that information.
## **Qualifying Third Party Indemnity Provisions**
The Charity has made qualifying third-party indemnity provisions for the benefit of its Trustees during the year. These provisions remain in force at the reporting date.
Approved by the Trustees on 27 January 2022 and signed on their behalf by:
Sir Simon Robey Chairman
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## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **INDEPENDENT AUDITORS’ REPORT**
## **TO THE TRUSTEES OF ALDEBURGH MUSIC ENDOWMENT FUND**
## **Opinion**
We have audited the financial statements of Aldeburgh Music Endowment Fund (the ‘charity’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 March 2021 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
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 charity 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.
## **Emphasis of matter – Non-going concern basis of accounting**
We draw attention to Note 2 of the financial statements which describes the preparation of the financial statements on a basis other than going concern. As described in Note 2, the Charity ceased its activities transferring them and the assets and liabilities on 31 March 2021 and the Trustees have concluded that it is no longer appropriate to prepare the financial statements on a going concern basis. There have been no adjustments made to the financial statements as a result of the application of the non-going concern basis of accounting. Our opinion is not modified in respect of this matter.
## **Other information**
The other information comprises the information included in the Trustees’ Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **INDEPENDENT AUDITORS’ REPORT**
## **TO THE TRUSTEES OF ALDEBURGH MUSIC ENDOWMENT FUND** _**(continued)**_
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the Trustees’ Report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees’ responsibilities set out on page 6, the trustees 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
## **The extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
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## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **INDEPENDENT AUDITORS’ REPORT**
## **TO THE TRUSTEES OF ALDEBURGH MUSIC ENDOWMENT FUND** _**(continued)**_
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
- obtained an understanding of the nature of the sector, including the legal and regulatory framework, that the charity operate in and how the charity is complying with the legal and regulatory framework;
- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Charities Act 2011, the charity’s governing document, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, remaining alert to any new or unusual transactions which may not be in accordance with the governing documents and inspecting any correspondence local tax authorities.
The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to any significant, unusual transactions and transactions entered into outside the normal course of business.
A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charity’s trustees as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## RSM UK AUDIT LLP
RSM UK Audit LLP Statutory Auditor Chartered Accountants Blenheim House Newmarket Road Bury St Edmunds Suffolk IP33 3SB
Date 27 January 2022
RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
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## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 31 MARCH 2021**
|**Note**
**Income and endowments from:**
Donations and legacies
3
Charitable activities
4
Investment Income
5
Other
**Total income**
**Expenditure on:**
Raising funds
Charitable activities
6
Other expenditure
7
**Total expenditure**
Net gain on property investments
10
Net gain/(loss) on listed investments
11
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**|**Restricted**
**£**
147,008
-
132,791
-
279,799
-
19,583
7,509,838
7,529,421
144,900
308,817
(6,795,905)
6,795,905
-|**Endowment**
**£**
877,684
223,060
65,140
-
1,165,884
18,127
536,415
9,088,189
9,642,731
207,900
556,901
(7,712,046)
7,712,046
-|**2021**
**£**
1,024,692
223,060
197,931
-
1,445,683
18,127
555,998
16,598,027
17,172,152
352,800
865,718
(14,507,951)
14,507,951
-|**2020**
**£**
837,846
324,785
354,246
79,067|
|---|---|---|---|---|
|||||1,595,944|
|||||65,672
2,842,706
-|
|||||2,908,378|
|||||-
(63,344)|
||||||
|||||(15,883,729)|
|||||15,883,729|
|||||14,507,951|
The notes on pages 13 to 23 form part of these accounts.
All unrestricted income in the year has been added to the Endowment capital, as permitted by the Trust Deed, until such time as the Trustees are required to expend it. Further analysis of the unrestricted income, its application and the net income added to the capital, is contained in Note 18.
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**Charity registration number: 282610**
## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **BALANCE SHEET**
## **AS AT 31 MARCH 2021**
|**Note**
**Fixed assets**
Tangible assets
9
Investment properties
10
Listed investments
11
Investment in subsidiary
12
**Current assets**
Debtors
13
Cash at bank
**Creditors:**amounts falling due within one year
14
**Net current assets**
**Total assets less current liabilities**
**Creditors:**amounts falling due after more than one year
15
**Net assets**
**The funds of the Charity**
Restricted funds
17
Endowment funds
18
**Total Charity funds**
19|**2021**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|**2020**
**£**
9,828,872
714,700
3,598,382
410,000|
|---|---|---|
|||14,551,954|
|||649,806
209,349|
|||859,155|
|||58,998|
|||800,157|
|||15,352,111
844,160|
|||14,507,951|
|||6,795,905
7,712,046|
|||14,507,951|
The notes on pages 13 to 23 form part of these accounts.
These financial statements on pages 10 to 23 were approved by the Trustees on 27 January 2022, authorised for issue and signed on their behalf by:
Sir Simon Robey Chairman
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## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **STATEMENT OF CASH FLOWS**
## **AS AT 31 MARCH 2021**
|**2021**
**Note**
**£**
**a) Cash flows from operating activities:**
**Net cash provided by (used in) operating activities**
B
1,437,161
**Cash flows from investing activities:**
Dividends, interest and rents from investments
197,930
Proceeds from sale of tangible fixed assets
-
Proceeds from sale of investment property
-
Purchase of property, plant and equipment
(95,897)
Deferred consideration paid
-
Purchase of investments
(14,189)
**Net cash from investing activities**
87,844
**Cash flows from financing activities**
Cash inflows from new borrowings
-
Repayments of loan
(782,961)
Cash transferred to Britten Pears Arts
(951,393)
**Net cash outflow in financing activities**
(1,734,354)
**Net increase in cash and cash equivalents**
(209,349)
**Cash and cash equivalents at the beginning of the year**
209,349
**Cash and cash equivalents at the end of the year**
C
-
**b) Reconciliation of net income to net cash flow from operating activities**
**2021**
**£**
**Net income/(expenditure) for the reporting period as per the**
**Statement of Financial Activities**
2,090,076
Adjustments for:
Depreciation charge
349,484
Assignment of loan
-
(Gains)/loss on investments
(865,718)
(Gains)/loss on property investments
(352,800)
Dividends, interest and rents from investments
(197,931)
Gain on disposal of fixed assets
-
(Increase) in debtors
(253,721)
(Decrease) in creditors
667,771
**Net cash used by operating activities**
1,437,161
**c) Analysis of Cash and Cash Equivalents**
**2021**
**£**
Cash at bank and in hand
-
**Total cash and cash equivalents**
20
-|**2020**
**£**
(223,178)|
|---|---|
||354,246
271,325
370,000
(26,276)
(689,500)
-|
||279,795|
||700,000
(726,875)
-|
||(26,875)|
||29,742
179,607|
||209,349|
||
**2020**
**£**
(1,375,778)
104,468
2,000,000
63,344
-
(354,246)
(79,067)
(555,009)
(26,890)|
||(223,178)|
||**2020**
**£**
209,349|
||209,349|
- 12 -
DocuSign Envelope ID: BC004789-CBED-4F88-98EA-31E512848B98
## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **1. PRIOR YEAR COMPARISON**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 31 MARCH 2020**
|**Income and endowments from:**
Donations and legacies
Charitable activities
Investment income
Other
**Total income and endowments**
**Expenditure on:**
Raising funds
Charitable activities
**Total expenditure**
Net loss on investments
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**|**Restricted**
**£**
14,546
-
187,029
-
201,575
-
220,758
220,758
(27,524)
(46,707)
6,842,612
6,795,905|**Endowment**
**£**
823,300
324,785
167,217
79,067
1,394,369
65,672
2,621,948
2,687,620
(35,820)
(1,329,071)
9,041,117
7,712,046|**2020**
**£**
837,846
324,785
354,246
79,067|
|---|---|---|---|
||||1,595,944|
||||
65,672
2,842,706|
||||2,908,378|
||||
(63,344)|
||||(1,375,778)|
||||
15,883,729|
||||14,507,951|
All the above movements relate to continuing activities.
- 13 -
DocuSign Envelope ID: BC004789-CBED-4F88-98EA-31E512848B98
**ALDEBURGH MUSIC ENDOWMENT FUND**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021** _**(continued)**_
## **2. ACCOUNTING POLICIES**
## **Basis of preparation**
Aldeburgh Music Endowment Fund is an unincorporated charity domiciled and registered in England and meets the definition of a public benefit entity. The financial statements are prepared in Sterling, which is the functional currency of the Charity. Monetary amounts are rounded to the nearest £.
Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policy note.
These accounts have been prepared under the historical cost convention as modified by the recognition of certain financial assets measured at fair value in accordance with generally accepted accounting principles, Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act.
## **Significant judgements and estimates**
The Charity’s aims, objectives and strategies are identified in the Trustees’ Report on page 3. The Trustees do not consider there to be any key judgements or estimates that would have a material direct impact in these financial statements.
## **Going Concern**
On 31 March 2021 Aldeburgh Music Endowment Fund transferred all its activities and the assets and liabilities for nil consideration to Britten Pears Arts as part of a group reconstruction. From this date the Charity ceased to operate. The financial statements have therefore been prepared on a basis other than going concern.
## **Income**
Income is stated net of Value Added Tax and is recognised once the Charity has entitlement to the resources, it is probable the resources will be received, and the monetary value can be measured with sufficient reliability. Income is deferred when it does not meet the income recognition criteria noted under the Charities SORP (FRS 102), including where a donor has imposed conditions which must be met before the Charity has unconditional entitlement.
Grants received of a capital nature are held in a restricted fund or otherwise, depending on the conditions of the grant, and depreciation of the relevant assets is charged to the appropriate fund.
Where a donation or legacy is settled in the form of tradable securities, the amount recognised is the market value on the date control of the securities is passed to the Charity.
Income is not recognised for legacies which remain subject to a life interest.
Donations of property are professionally valued at the time ownership passes to the Charity.
- 14 -
DocuSign Envelope ID: BC004789-CBED-4F88-98EA-31E512848B98
## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2020** _**(continued)**_
## **2. ACCOUNTING POLICIES (continued)**
## **Expenditure**
Expenditure is accounted for on an accruals basis and is allocated to the appropriate heading in the accounts, inclusive of any irrecoverable VAT.
## _Raising funds:_
Costs associated with raising funds reflect expenditure for the maintenance and administration of investment properties, including service charges, repairs and legal fees relating to the creation and agreement of leases with tenants.
## _Charitable activities:_
Charitable activity expenditure largely represents grants made to Britten Pears Arts and costs associated with the provision of land and buildings in pursuit of that entity’s own charitable objects. Grants are eliminated within Britten Pears Arts’ consolidated accounts.
## **Investment properties**
These properties are carried at market value at each reporting date. Market value is assessed at regular intervals, or sooner in volatile economic circumstances, using a professional valuer. Surpluses or deficits arising on revaluation are transacted through the Statement of Financial Activities.
## **Listed investments**
Listed investments are shown at bid price. Differences arising on closing market value are taken to the Statement of Financial Activities as an unrealised movement.
## **Loan investments**
Loans are stated at the amount provided less interim capital repayments. Interest receivable on outstanding balances is taken to the Statement of Financial Activities.
## **Financial instruments**
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## **Basic financial assets**
Basic financial assets, which include trade and other debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost.
## **Basic financial liabilities**
Basic financial liabilities, including trade and other creditors and loans from fellow group companies, are initially recognised at transaction price. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
## **Fund accounting**
Details of the nature and purpose of each fund are set out in Notes 16 and 17.
- 15 -
DocuSign Envelope ID: BC004789-CBED-4F88-98EA-31E512848B98
**ALDEBURGH MUSIC ENDOWMENT FUND**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021** _**(continued)**_
## **2. ACCOUNTING POLICIES (continued)**
## **Depreciation**
All tangible assets costing £500 or more are capitalised including any incidental expenses of acquisition. Depreciation is provided on a straight-line basis over their useful economic lives as follows:
Freehold buildings and alterations between 5 and 50 years, down to residual value Leasehold buildings the period of the lease, down to residual value Capital acquisition costs 5 years Plant and machinery 10 years Freehold land No depreciation Works of art No depreciation as the Trustees consider their market valuation is at least equal to their holding value Assets under construction Nil until asset is ready for use
Impairment reviews are undertaken when indicators highlight that such reviews are required. Where an asset’s holding value is considered to be impaired, the loss is taken through the Statement of Financial Activities.
|**3.**|**DONATIONS AND LEGACIES**|||**2021**||**2020**|
|---|---|---|---|---|---|---|
|||||**£**||**£**|
||Legacies|||917,078||808,000|
||Local authority grant|||102.500||14,546|
||Distribution from subsidiary|||5,114||-|
||Donations from corporate|||-||14,000|
||Donations from private individuals|||-||1,300|
||||1,024,692|||837,846|
|**4.**|**INCOME FROM CHARITABLE ACTIVITIES**|||**2021**||**2020**|
|||||**£**||**£**|
||Rent from Group members|||223,060||324,785|
|**5.**|**INCOME FROM INVESTMENTS**|||**2021**||**2020**|
|||||**£**||**£**|
||Rent and service charges received from third parties|||69,934||83,195|
||Dividend income from market investments|||127,900||156,837|
||Interest received from loan to Snape Maltings Trading|Limited||-||113,548|
||Interest received from deposit accounts|||97||666|
|||||197,931||354,246|
|**6.**|**EXPENDITURE ON CHARITABLE ACTIVITIES**|||**Total**||**Total**|
|||**Restricted**|**Endowment**|**2021**||**2020**|
|||**£**|**£**||**£**|**£**|
||Grants to Britten Pears Arts|-|47,890|47,890||533,060|
||Assignment of Loan|-|-||-|2,000,000|
||Other charitable costs, including depreciation on||||||
||tangible fixed assets used by the Group|19,583|488,525|508,108||309,646|
|||19,583|536,415|555,998||2,842,706|
In March 2020 the £2 million loan that the Charity had outstanding from Snape Maltings Trading Limited was assigned to Britten Pears Arts as part of the reorganisation under which all the Charity’s assets and liabilities have been passed to Britten Pears Arts.
## **7. OTHER EXPENDITURE**
Transfer to Britten Pears Arts
|**2021**|**2020**|
|---|---|
|**£**|**£**|
|16,598,027|-|
- 16 -
DocuSign Envelope ID: BC004789-CBED-4F88-98EA-31E512848B98
**ALDEBURGH MUSIC ENDOWMENT FUND**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021** _**(continued)**_
## **8. AUDITOR’S RENUMERATION**
The auditor’s remuneration constituted an audit fee of £4,475 (2020: £4,100) and tax advisory services of £nil (2020: £4,465).
## **9. TANGIBLE FIXED ASSETS**
|**Cost:**
1 April 2020
Additions
Transfer to Britten Pears
Arts
31 March 2021
**Depreciation:**
1 April 2020
Depreciation
Impairment
Transfer to Britten Pears
Arts
31 March 2021
**Net book value:**
31 March 2020
31 March 2021|**Assets**
**under**
**construction**
**Freehold**
**land and**
**buildings**
**Leasehold**
**land and**
**buildings**
**Plant and**
**equipment**
**Works of**
**art**
**Total**
**£**
**£**
**£**
**£**
**£**
**£**
452,590
9,487,020
408,563
95,000
295,735
10,738,908
95,897
-
-
-
-
95,897
(548,487) (9,487,020)
(408,563)
(95,000)
(295,735) (10,834,805)|
|---|---|
||-
-
-
-
-
-|
||-
850,568
11,968
47,500
-
910,036
-
29,864
619
9,500
-
39,983
309,501
-
-
-
-
309,501
(309,501)
(880,432)
(12,587)
(57,000)
-
(1,259,520)|
||-
-
-
-
-
-|
||452,590
8,636,452
396,595
47,500
295,735
9,828,872|
||-
-
-
-
-
-|
The Charity owns properties at Snape Maltings and in Aldeburgh which are held to achieve the Charity’s objectives in supporting Britten Pears Arts and other Group members in pursuit of their own activities.
Properties in Aldeburgh were valued in August 2016 by Fenn Wright, Chartered Surveyors, who assigned valuations based on the effective date of transition to FRS 102 (1 April 2014). Under FRS 102 transitional arrangements, these values are deemed to be their historic cost.
Given the conservation requirements placed upon the Charity’s buildings the residual values of buildings were revised in 2019/20 from nil value to 80% of cost value. This change in accounting estimate reduced the depreciation charge in 2019/20 and future years.
Assets under construction include site flood defences and costs incurred on future site redevelopment. Flood defence works are expected to be completed by the summer of 2023. The trustees reviewed the carrying value of fixed assets and, following a review of the plans for the further redevelopment of the site, decided the residual balance should be written off in full.
|**10.**
**INVESTMENT PROPERTIES**
Market value and deemed historic cost at beginning
Disposals
Unrealised gain
Transfer to Britten Pears Arts
Market value and deemed historic cost at end of year|**2021**
**2020**
**£**
**£**
714,700
1,084,700
-
(370,000)
352,800
-
(1,067,500)
-
-
714,700|
|---|---|
The Charity owned the freehold of shops and office space let to non-Group entities at Snape Maltings.
Investment properties were valued as at March 2021 by Fenn Wright, Chartered Surveyors.
- 17 -
DocuSign Envelope ID: BC004789-CBED-4F88-98EA-31E512848B98
## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021** _**(continued)**_
|**11.**
**LISTED INVESTMENTS**
Market value at beginning of year
Additions
Unrealised gain/(loss) on revaluation of remaining investments
Transfer to Britten Pears Arts
Market value at end of year
Historical Cost at end of the year|**2021**
**£**
3,598,382
14,189
865,718
(4,478,289)
-
-|**2020**
**£**
3,661,726
-
(63,344)
-|
|---|---|---|
|||3,598,382|
||||
|||2,411,199|
## **12. INVESTMENT IN SUBSIDIARY**
The Charity owned the entire ordinary share capital of Elm Property Investments (Snape Maltings) Limited, a company registered in England and Wales (registration number 9641832). The company owns the freehold of residential properties and a storeroom at Snape Maltings. Ground rent is received from leasehold property owners. Snape Maltings Trading Limited pays rent for use of the storeroom. Elm Property Investments (Snape Maltings) Limited became a direct subsidiary of Britten Pears Arts with effect from 31 March 2021.
A summary of the trading subsidiary’s accounts is given below and is taken from the audited accounts of that company. It therefore includes transactions undertaken with other Group entities which are eliminated on consolidation of the Group’s financial statements.
|Elm Property Investments (Snape Maltings) Limited
Turnover
Administration costs
Gain on revaluation of investment properties
Net Profit
Taxation
Profit after taxation for the financial year
Ordinary share capital and reserves|**2021**
**£**
11,400
(12,474)
40,728
39,654
(5,463)
34,191
**% held**
100%|**2020**
**£**
15,225
(9,945)
-|
|---|---|---|
|||5,280
(166)|
|||5,114|
|||**Aggregate**
**Capital**
**and**
**Reserves**
**£**
410,000|
Ordinary share capital consists of 410,000 shares of £1 each. These shares were transferred to Britten Pears Arts on 31 March 2021 as part of the group reorganisation on that date.
- 18 -
DocuSign Envelope ID: BC004789-CBED-4F88-98EA-31E512848B98
## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021** _**(continued)**_
|**13.**
**DEBTORS**
Trade debtors
Amounts owed by Group undertakings
Prepayments and accrued income
**14.**
**CREDITORS: amounts falling due within one year**
Bank loan
Trade creditors
Amounts due to Group undertakings
Accruals and deferred income
VAT payable|**2021**
**£**
-
-
-
-
**2021**
**£**
-
-
-
-
-
-|**2020**
**£**
300
66,828
582,678|
|---|---|---|
|||649,806|
|||**2020**
**£**
27,584
9,668
1,178
12,679
7,889|
|||58,998|
Deferred income comprises ground rent collected for the calendar year and rent deposits.
|Balance as at 1 April 2020
Release of income earned
Amount deferred in the year
Transfer to Britten Pears Arts
Balance as at 31 March 2021
**15.**
**CREDITORS: amounts falling due after more than one year**
Bank loan
Deferred Section 106 liability
Rent deposit held as security|**2021**
**£**
-
-
-
-|**£**
3,000
(3,000)
2,850
(2,850)|
|---|---|---|
|||-|
|||**2020**
**£**
755,377
83,000
5,783|
|||844,160|
The bank loan represents the capital on a mortgage provided by National Westminster Bank on the purchase of Bridge House, Snape, in September 2016. The loan is secured on Bridge House which had a carrying value of £1,366,566 as at 31 March 2020. The loan term was 25 years with a fixed interest rate agreement of 2.63% for the first five years. It was repaid in the current year.
The S. 106 liability refers to the amounts that were paid ahead of the acquisition of the Snape site in 2015 and were returned as deferred consideration in the expectation that the relevant development would not take place.
|**16.**|**FINANCIAL INSTRUMENTS**|**2021**|**2020**|
|---|---|---|---|
|||**£**|**£**|
||Financial assets measured at fair value|-|3,598,382|
- 19 -
DocuSign Envelope ID: BC004789-CBED-4F88-98EA-31E512848B98
## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021** _**(continued)**_
## **17. RESTRICTED FUNDS**
|**CURRENT YEAR**
**Balance**
**1 April**
**2020**
**£**
Basil Coleman Memorial
Fund
1,231,898
Other restricted revenue
funds
154,295
Restricted fixed assets
funds
5,409,712
Total restricted funds
6,795,905
**PRIOR YEAR**
Basil Coleman Memorial Fund
Other restricted revenue funds
Restricted fixed assets funds
Total restricted funds|**Balance**
**1 April**
**2020**
**£**
1,231,898
154,295
5,409,712|**Income**
**Expend.**
**2021**
2021
**£**
**£**
40,506
-
136,793
-
102,500
(19,583)|**Invest.**
**Transfer**
**Balance**
**gain**
**To BPA**
**31 March**
**2021**
**2021**
**2021**
**£**
**£**
**£**
273,576
(1,545,980)
-
35,241
(326,329)
-
144,900
(5,637,529)
-|
|---|---|---|---|
||6,795,905|279,799
(19,583)|453,717
(7,509,838)
-|
|||**Balance**
**1 April**
**Income**
**2019**
**2020**
**£**
**£**
1,201,187
53,950
164,036
133,079
5,477,389
14,546|**Invest.**
**Balance**
**Expend.**
**loss**
**31 March**
**2020**
**2020**
**2020**
**£**
**£**
**£**
-
(23,239)
1,231,898
(138,535)
(4,285)
154,295
(82,223)
-
5,409,712|
|||6,842,612
201,575|(220,758)
(27,524)
6,795,905|
Restricted funds represent grants, donations and legacies which must be used as donors have directed. The Basil Coleman Memorial Fund is restricted to provide support to fully staged operas (particularly those of Benjamin Britten) performed by students of the Britten–Pears Young Artist Programme upon completion of opera courses.
Other restricted revenue funds must be used in support of the Britten–Pears Young Artist Programme, commissioning new works, talent development, the Aldeburgh Festival, operas, the legacy of the Britten Centenary and the digital distribution of music.
Restricted fixed asset funds reflect the balance of grants and donations received, less depreciation charges, in support of the purchase of land and buildings, site redevelopment and the purchase of artwork.
## **18. ENDOWMENT FUNDS**
|**CURRENT YEAR**
Expendable – General
Britten–Pears Young Artist
Programme
Britten–Pears and Events
AYM
Replacement and Renewals
Contingency Reserve
Expendable – Other
Expendable – Catalyst
Total expendable endowment
Permanent endowment
Total endowment funds|**Balance**
**Invest.**
**Transfer**
**Balance**
**1 April**
**Income**
**Expend.**
**gain**
**To BPA**
**31 March**
**2020**
**2021**
**2021**
**2021**
**2021**
**2021**
£
£
**£**
£
**£**
**£**
2,755,628
293,239
(548,451)
20,661
(2,521,077)
**-**
1,074,273
41
(2,500)
-
(1,071,814)
**-**
335,000
257,203
(779)
-
(591,424)
**-**
-
17,342
-
7,859
(25,201)
255,739
598,048
(601)
-
(853,186)
**-**
949,952
11
(2,211)
-
(947,752)
**-**|
|---|---|
||2,614,964
872,645
(6,091)
7,859
(3,489,377)
-|
||2,181,484
-
-
698,144
(2,879,628)
**-**|
||7,552,076
1,165,884
(554,542)
726,664
(8,890,082)
**-**|
||159,970
-
-
38,137
(198,107)
**-**|
||7,712,046
1,165,884
(554,542)
764,801
(9,088,189)
**-**|
- 20 -
DocuSign Envelope ID: BC004789-CBED-4F88-98EA-31E512848B98
## **ALDEBURGH MUSIC ENDOWMENT FUND**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021** _**(continued)**_
## **18. ENDOWMENT FUNDS (continued)**
|**PRIOR YEAR**
Expendable – General
Britten–Pears Young Artist
Programme
Britten–Pears and Events
Replacement and Renewals
Contingency Reserve
Expendable – Other
Expendable – Catalyst
Total expendable endowment
Permanent endowment
Total endowment funds|**Balance**
**1 April**
**Income**
**Expend.**
**2019**
**2020**
**2020**
**£**
**£**
**£**
4,144,375
488,740
(2,460,838)
1,755,154
63,136
(162,148)
394,000
16,346
(64,634)
163,991
7,054
-
231,996
819,093
-|**Invest.**
**Balance**
**loss**
**Transfer**
**31 March**
**2020**
**2020**
**2020**
**£**
**£**
**£**
(19,364)
602,715
2,755,628
20,846
(602,715)
1,074,273
(10,712)
-
335,000
(5,306)
90,000
255,739
(11,137)
(90,000)
949,952|
|---|---|---|
||2,545,141
905,629
(226,782)|(6,309)
(602,715)
2,614,964|
||2,188,815
-
-|(7,331)
-
2,181,484|
||8,878,331
1,394,369
(2,687,620)|(33,004)
-
7,552,076|
||162,786
-
-|(2,816)
-
159,970|
||9,041,117
1,394,369
(2,687,620)|(35,820)
-
7,712,046|
## **Annual gains and losses**
Unless constrained by the terms of a donation, net annual gains and losses are retained within the relevant funds to allow these to provide a source of long-term funding. Trustees have the power to approve the use of income and capital to meet the Charity’s grant commitments and liquidity requirements.
## **Expendable – General**
These are funds that may be used for any charitable purpose at the discretion of the Trustees.
## **Expendable – Other**
Britten–Pears Young Artist Programme Funds provide financial support to Britten Pears Arts to enable students from around the world to attend masterclasses held as part of the Britten–Pears Young Artist Programme.
Britten–Pears and Events Funds provide funding in support of the Britten–Pears Young Artist Programme and events at Snape Maltings Concert Hall.
The Replacement and Renewals Fund exists to meet significant ongoing repairs and improvements to the Snape Maltings’ site, including the Concert Hall and its infrastructure.
The Contingency Reserve aims to build a sum of £950,000 over the medium to long term. The reserve is intended to cover known and likely costs payable over a notional 12 to 24-month period during which the Group would be restructured following the occurrence of one or more unforeseen risks such as the loss of support from key funders.
## **Expendable – Catalyst**
In 2012, Arts Council England awarded a grant under the Catalyst Arts: endowments scheme. New funds totalling £1,000,000 was matched-funded by Arts Council England to create a new endowment. The grant was made subject to various conditions, including the Trustees signing a Declaration of Trust which includes a provision that the capital will be invested for a minimum of 25 years, after which it will become unrestricted.
Investment income generated by this expendable endowment may only be used to provide additional financial support to Britten Pears Arts for talent development, maximising the legacy of the Britten Centenary, developing new opera, supporting the Aldeburgh Festival and the digital distribution of music.
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DocuSign Envelope ID: BC004789-CBED-4F88-98EA-31E512848B98
**ALDEBURGH MUSIC ENDOWMENT FUND**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021** _**(continued)**_
## **18. ENDOWMENT FUNDS (continued)**
## **Permanent endowment**
Permanent endowment reserves are comprised of four funds whose capital may not be spent. Investment income is used in support of activities including the Britten–Pears Young Artist Programme.
## **Transfer**
During the prior year, the Trustees transferred funds of £602,715 from designated funds to unrestricted to make general reserves available to transfer the £2m loan to Snape Maltings Trading Limited to Britten Pears Arts, the Charity’s ultimate parent as part of the completion of the merger with the latter.
The Trustees moved £90,000 from the Contingency Reserve as the £950,000 set reserve target had been achieved into the Replacement & Renewals Fund.
On 31 March 2021 a group reorganisation took place and the assets and liabilities of the Aldeburgh Music Endowment Fund were transferred to Britten Pears Arts.
## **19. ANALYSIS OF CHARITABLE FUNDS**
## **20.**
|**PRIOR YEAR**
Balances at 31 March 2020 are represented by:
Tangible assets
Investment property
Listed investments
Investment in subsidiary
Current assets
Current liabilities
Creditors falling due after more than one year
**ANALYSIS OF NET DEBT**
Cash and cash equivalents
Cash
Borrowings
Debt due within 1 year
Debt due after 1 year|**Restricted**
**Endowment**
**Total**
**£**
**£**
**£**
4,820,112
5,008,760
9,828,872
589,600
125,100
714,700
1,295,365
2,303,017
3,598,382
-
410,000
410,000
98,067
761,088
859,155
(1,456)
(57,542)
(58,998)
(5,783)
(838,377)
(844,160)
6,795,905
7,712,046
14,507,951
**Other**
**1 April**
**non cash**
**31 March**
**2020**
**Cash flow**
**changes**
**2021**
**£**
**£**
**£**
**£**
209,349
(209,349)
-
-|
|---|---|
||209,349
(209,349)
-
-
(27,584)
27,584
-
-
(755,377)
755,377
-
-|
||(782,961)
782,961
-
-|
||(573,612)
573,612
-
-|
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DocuSign Envelope ID: BC004789-CBED-4F88-98EA-31E512848B98
**ALDEBURGH MUSIC ENDOWMENT FUND**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2021** _**(continued)**_
## **21. KEY MANAGEMENT PERSONNEL**
The Charity’s key management personnel consist of all Trustees together with Roger Wright (Chief Executive), Terry Comer (Head of Finance, resigned 30 June 2020), Stephen Pugh (Chief Finance Officer, appointed 22 July 2020) and Harry Young (General Manager) who were all employed and remunerated by Britten Pears Arts. No salaries were paid by the Charity to its Trustees (2020: £nil).
## **22. CAPITAL COMMITMENTS**
At 31 March 2021, capital commitments amount to £nil (2020: £22,550)
## **23. CONSOLIDATED ACCOUNTS**
The ultimate parent company was Britten Pears Arts, a charitable company registered in England and Wales. Britten Pears Arts’ registered office is Snape Maltings Concert Hall, Snape, Saxmundham, Suffolk IP17 1SP. On 31 March 2021 a group reorganisation took place and the assets and liabilities of the Aldeburgh Music Endowment Fund were transferred to Britten Pears Arts.
Consolidated accounts are prepared by Britten Pears Arts and are available from Companies House.
## **24. CONNECTED CHARITY AND RELATED PARTY TRANSACTIONS**
The Charity’s Trustees are nominated by Britten Pears Arts, a charitable company limited by guarantee, being registered in England and Wales at the same principal address as this Charity. Britten Pears Arts is therefore the Charity’s ultimate parent undertaking.
No donations were received from Trustees, other related parties or key management personnel during the year (2020: £nil).
One Trustee of Britten Pears Arts paid residential accommodation ground rent to the Charity in the year of £600 (2020: £600).
No expenses were paid by the Charity to its Trustees (2020: £nil).
The Charity undertook the following transactions with Britten Pears Arts, Snape Maltings Trading Limited and its own subsidiary Elm Property Investments (Snape Maltings) Limited:
|**Income**
Rent
**Expenditure**
Grants payable
Management charges
Recharged costs
Sundry costs
Transfer of assets and liabilities
Balances outstanding at 31 March 2021|**Elm Property**
**Snape**
**Investments**
**Britten**
**Maltings**
**(Snape**
**Pears**
**Trading**
**Maltings)**
**Arts**
**Limited**
**Limited**
**£**
**£**
**£**
81,560
141,500
-|
|---|---|
||81,560
141,500
-|
||47,890
-
-
84,428
-
-
2,153
87
-
-
308
300
16,598,027
-
-|
||16,732,498
395
300|
|||
||-
-
-|
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