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2023-12-31-accounts

Company Registration No. 01587684 (England and Wales) Charity Registration No. 283484 (England and Wales)

THE CHAMBER ORCHESTRA OF EUROPE (Limited by guarantee and not having share capital)

TRUSTEES' REPORT

AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

THE CHAMBER ORCHESTRA OF EUROPE

CONTENTS

Page
Legal and administrative information 1
Trustees' report 2 - 6
Independent auditor’s report 7 – 10
Statement of financial activities (including income and expenditure 11
account)
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 – 21

THE CHAMBER ORCHESTRA OF EUROPE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees, Directors and John Peter Abercromby Readman
Executive committee Michael Graham Hoare
James Judd
Secretary Michael Graham Hoare
Company Registration No. 01587684
Charity Registration No. 283484
Principal office North House
27 Great Peter Street
London SW1P 3LN
Registered office 40 Queen Anne Street
London W1G 9EL
Auditors Lewis Golden LLP
Chartered Accountants and Statutory Auditors
40 Queen Anne Street
London W1G 9EL
Bankers C Hoare & Co
37 Fleet Street
London EC4P 4DQ
Solicitors BDB Pitmans LLP
1 Bartholomew Close
London EC1A 7BL
Website www.coeurope.org

THE CHAMBER ORCHESTRA OF EUROPE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

The Trustees (who are also the directors) are pleased to present their report, together with the financial statements of the company for the year ended 31 December 2023 which also represents the Directors’ report as required by s415 of the Companies Act 2006.

The financial statements have been prepared in accordance with 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) (2nd Edition, effective January 2019) (“Charities SORP”), FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’, Companies Act 2006 and the Memorandum and Articles of Association.

The company and its charitable objectives for the public benefit

The Chamber Orchestra of Europe (COE) is a company limited by guarantee and not having a share capital (number 01587684). It is governed by its Memorandum and Articles of Association dated 25 September 1981, and is a registered charity (number 283484).

Legal and administrative information, as set out on page 1, forms part of this report.

The objectives of the Orchestra are to promote the performance of works of classical music so as to increase public taste and appreciation for the art of music.

As well as being Leaders and Principals of other major orchestras, the players pursue parallel careers as international soloists, members of celebrated chamber ensembles, and as professors of music. Unsurprisingly, the Chamber Orchestra of Europe philosophy influences the players’ own work during the rest of the year, notably in a wide range of educational projects in which they are involved, making the Orchestra a truly impressive example of co-operation between individual European nations.

The Chamber Orchestra of Europe is now a resident orchestra at the Casals Forum in Kronberg in association with the Kronberg Academy and is also the “Orchestra in Residence” at the Esterhazy Palace in Eisenstadt outside Vienna. In recent years it has maintained its associations with a group of major concert halls and festivals across the continent including the Concertgebouw in Amsterdam, the Kammermusiksaal of the Philharmonie in Berlin, the Teatro Comunale in Ferrara, the Philharmonies in Paris and Cologne, the Festspielhaus in Baden-Baden and the Salzburg Mozartwoche Festival. These residences and partnerships enhance the Orchestra’s financial and artistic ability to increase its profile and ensure that its objectives can be sustained in the long term.

The Chamber Orchestra of Europe Academy was developed in 2009 in order to give selected students the chance to study with the principal players of the Chamber Orchestra of Europe and be inspired by the Orchestra’s unique ethos and passion for making music.

The Trustees confirm that in accordance with section 4 of the Charities Act 2006 they have referred to the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims and objectives and in planning their future activities.

Organisation

The charitable company’s administration is under the control of the Trustees. The Trustees during the year to 31 December 2023 were:

J.P.A. Readman (Chairman) M.G. Hoare (Secretary) J. Judd (Director)

No Trustee/Director received any remuneration in the year to 31 December 2023, and no travel or other expenses were paid on behalf of any Trustee.

THE CHAMBER ORCHESTRA OF EUROPE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)

Method of appointment of Trustees

The appointment of Trustees/Directors is governed by the Memorandum and Articles of Association. In accordance with the charitable company’s Articles of Association Peter Readman retires by rotation and, being eligible, offers himself for re-election.

Results for the year ended 31 December 2023

The results for the year on page 11 of the financial statements show a net movement in the year of £711,246 increasing reserves at the end of the year to £2,859,274.

Achievements and Performance

2023 started with concerts at the Canary Islands’ Festival in architecturally stunning concert halls in Gran Canaria and Tenerife. We were thrilled to work for the first time with conductor Andrés Orozco-Estrada and also with one of the Orchestra’s longest-standing friends, pianist Pierre-Laurent Aimard. We then travelled to the Salzburg Mozartwoche to perform a concert with Andrés Orozco-Estrada conducting Mozart symphonies No. 29 and 38 and with Korean pianist Seong-Jim Cho as soloist in Mozart’s piano concerto No. 20.

The COE started touring again in mid-April, this time with conductor Robin Ticciati and violinist Lisa Batiashvili, performing five concerts in France, Germany and Austria. In May we were joined by a veteran of the classical music world, conductor Herbert Blomstedt, for four concerts in Germany and Luxemburg. For our concert in Dresden we were joined by the young and extremely talented violinist Maria Dueñas in Mendelssohn’s Violin Concerto.

At the end of June the COE was invited to perform at the Grange au Lac for the Rencontres Musicales d’Evian, again with Robin Ticciati, and world-renowned Welsh bass-baritone Bryn Terfel in a programme including works by Beethoven, Verdi, Mozart, Rossini and Dvorak. La Grange is a unique concert venue overlooking Evian and Lake Geneva and we were thrilled to have been invited there for the first time as part of the celebrations of the hall’s 30th anniversary.

In July we were back at our summer residency in Baden-Baden with Yannick Nézet-Séguin in order to complete our Brahms symphony cycle recorded by Deutsche Grammophon and due to be released some time in 2024. That concert was broadcast on Deutsche Grammophon’s virtual concert hall, Stage +. The musicians also performed a chamber music concert featuring Yannick Nézet-Séguin on the piano, the COE’s principal clarinet Romain Guyot and COE members Lorenza Borrani and Maia Cabeza (violin), Nimrod Guez (viola) and Will Conway (cello). The Orchestra then performed one more symphonic concert with Lisa Batiashvili as soloist in a programme including the Brahms violin concerto and a symphony by Louise Farrenc.

In August the COE travelled to Spain with Daniel Harding, a special friend of the Orchestra who conducted a programme of Beethoven and Sibelius at various musical festivals in Santander, San Sebastian, Pollença and Torroella.

The autumn started with our now annual appearance at the Herbstgold Festival at the Esterhazy Palace in Eisenstadt where the COE has been Orchestra in Residence since 2022. This year’s festival’s opening concert on 13th September featured the COE and Julian Rachlin, Artistic Director of Herbstgold, in works by Prokofiev, Glinka and Tchaikovsky. For its second concert on the 16th, as Sir John Eliot Gardiner had cancelled all his concerts for the rest of the year, the COE was joined by the very talented young conductor Maxim Emelyanychev, principal conductor of the Scottish Chamber Orchestra, and soprano Lucy Crowe in a programme of works by Haydn, Weber and Schubert. Both concerts were broadcast on Medici TV. We then moved on to the Kronberg Academy Festival as well as Bonn’s BeethovenFest, where the Orchestra had not returned since 2009. Robin Ticciati conducted all the concerts which also featured a number of international soloists.

THE CHAMBER ORCHESTRA OF EUROPE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)

Achievements and Performance (continued)

In October the Orchestra worked with conductor Andrew Manze and pianist Jan Lisiecki with whom they performed three different programmes in Frankfurt, Hamburg, Berlin and Eisenstadt, featuring works by Beethoven, Haydn, Mozart and Chopin. The concert in Eisenstadt was again broadcast on Medici TV.

We concluded 2023 with our now-annual extensive tour with Sir Antonio Pappano, this time with soloist pianist Beatrice Rana with whom we released a recording of piano concertos by Robert Schumann and Clara WieckSchumann earlier this year to great international acclaim. Pappano, Rana and the COE gave seven concerts in Italy, Germany and Austria, finishing the tour in Vienna after a rather hectic day of travelling due to the original flight from Berlin being cancelled on the day of the concert at the Musikverein. They all made it to the concert hall with only minutes to spare before the concert, bringing the year to a most successful conclusion.

Finance and sponsorship

We continue to be very fortunate to benefit from the significant support of The Gatsby Charitable Foundation and from our programme of support of the Principal positions in the Orchestra. In 2023 we benefited again from a meaningful grant towards our eligible expenses from HMRC under its orchestra tax relief scheme which was introduced in April 2016. Above all, however, we received exceptional and very significant additional donations from The Gatsby Charitable Foundation specifically to support our members, for which we are immensely grateful.

Reserves Policy

At the end of the year the Orchestra had reserves of £2,859,274. The Orchestra requires a level of reserves to ensure sufficient resources to support a programme of activity that involves development some years in advance. The Trustees also consider it appropriate to have a higher level of reserves to mitigate some of the risks associated with working across Europe at a time of uncertainty caused by the effects of the war in Ukraine and the changes to the UK government tax credit scheme from 1 April 2024 when it will no longer be possible to make claims for eligible costs incurred outside the UK. This change will reduce significantly the support we have received every year since 2016 and is the reason the Orchestra is holding a higher level of reserves than in previous years.

The reserves of the charity are constantly reviewed by the Trustees to ensure they are appropriate to support the activities of the charity. The Trustees set budgets at the start of the year and review actual income and expenditure against these budgets at regular Trustee meetings.

Major Risks

The major risks to which the COE is exposed are constantly reviewed by the Trustees and, to the extent possible, systems have been put in place to mitigate those risks. Specifically, these include dealing with the massive consequences of Brexit, Covid and the war in Ukraine to which the COE is as vulnerable as any British orchestra. However, with the healthy level of reserves and additional grants from The Gatsby Charitable Foundation there is every prospect that the Orchestra remains in a reasonable position to weather the current uncertainties.

Future Activities

At the beginning of 2024 we returned to the Salzburg Mozartwoche Festival for a concert with Kirill Gerstein playing Mozart and Beethoven piano concertos and Maria Wloszczowska leading the Orchestra for the orchestral pieces. The day after its concert in Salzburg the COE moved to its home at the Casals Forum in Kronberg for a concert for the Friends of the Kronberg Academy.

THE CHAMBER ORCHESTRA OF EUROPE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)

Future Activities (continued)

In April the Orchestra will visit Athens with Constantinos Carydis conducting and Jan Lisiecki as piano soloist in a very varied programme, following which the Orchestra will visit Spain and Germany with Joshua Bell. András Schiff, an Honorary Member of the COE, will then play with and conduct the Orchestra in a programme including Brahms Piano Concerto No. 1 in concerts in Austria, Germany and Italy. Following this Simon Rattle and his wife Magdalena Kožená will join the Orchestra in June for a major tour including Austria, France, Italy and Greece.

In July the Orchestra will meet up again with Yannick Nézet-Séguin at the “La Capitale d’Ēté” summer festival in Baden-Baden where they will give concerts with Yannick – another Honorary Member of the Orchestra – and Joyce di Donato and Seong-Jin Cho as soloists. The rest of the year looks as if it will be as challenging as ever with a final project being another European tour with Antonio Pappano conducting and Bertrand Chamayou as soloist.

Statement of Trustees’ responsibilities

The Trustees (who are also Directors of The Chamber Orchestra of Europe for the purposes of company law) are responsible for preparing the Trustees’ Report and financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law Trustees must prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company 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 and 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. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

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THE CHAMBER ORCHESTRA OF EUROPE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE CHAMBER ORCHESTRA OF EUROPE

Opinion

We have audited the financial statements of The Chamber Orchestra of Europe (the ‘charitable company’) for the year ended 31 December 2023 which comprise the Statement of Financial Activities (including an income and expenditure account), the Balance Sheet, the Statement of Cash Flows and Notes to the financial statements, including a summary of 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 entity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

THE CHAMBER ORCHESTRA OF EUROPE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE CHAMBER ORCHESTRA OF EUROPE (CONTINUED)

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 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 pages 5 and 6 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.

THE CHAMBER ORCHESTRA OF EUROPE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE CHAMBER ORCHESTRA OF EUROPE (CONTINUED)

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We tailored the scope of our audit to ensure that we performed sufficient work to be able to give an opinion on the financial statements as a whole. We used the outputs of a risk assessment, our understanding of the company, its environment, its controls and critical business processes, to consider qualitative factors in order to ensure that we obtained sufficient coverage across all financial statement line items.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. In identifying and assessing risks of material misstatement in respect of irregularities including non-compliance with laws and regulations, our procedures included but were not limited to:

We also considered those other laws and regulations that have a direct impact on the preparation of financial statements, such as the Companies Act 2006 and the Charities Act 2011.

Our procedures in relation to fraud included but were not limited to:

The primary responsibility for the prevention and detection of irregularities including fraud rests with the Trustees. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

THE CHAMBER ORCHESTRA OF EUROPE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE CHAMBER ORCHESTRA OF EUROPE (CONTINUED)

Auditor’s responsibilities for the audit of the financial statements (continued)

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 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.

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

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Moss Senior Statutory Auditor For and on behalf of Lewis Golden LLP

Chartered Accountants and Statutory Auditors 40 Queen Anne Street London W1G 9EL

Date: 29 May 2024

THE CHAMBER ORCHESTRA OF EUROPE

STATEMENT OF FINANCIAL ACTIVITIES (including an income and expenditure account) FOR THE YEAR ENDED 31 DECEMBER 2023

Notes
Income and endowments from:
Donations and legacies
Charitable activities
2
Other income
Interest receivable
3
Total income and endowments
Expenditure on:
Charitable activities
4
Total expenditure
Net income / (expenditure)
Net movement in funds
16
Total funds brought forward
Total funds carried forward
16		 Unrestricted
Funds
2023
£
753,742
2,206,059
1,193,574
17,619
4,170,994
(3,459,748)
(3,459,748)
711,246
711,246
2,148,028
2,859,274		 Unrestricted
Funds
2022
£
781,269
2,861,973
266,015
-
3,909,257
(3,971,201)
(3,971,201)
(61,944)
(61,944)
2,209,972
2,148,028

THE CHAMBER ORCHESTrA OF EUROPE BALANCE 8HEEr A8 AT 31 DEcEp￿ER 2023 3.17T 4.238 11 254.874 3,488.782 2,009,n7 3.743.ese 2,257,742 12 1113,9501 2,858,C$7 2.143,792 2,859,274 2,148.028 2.8S9374 2.148,028 2,859374 2.148.028 applratAe h the UK aThJ Rowblk of IrolaTrJ IFRS 1021 edluon. gll•XNe 1 knuary 20191 and in Scto￿anC¥ ￿1h the SF4d&l 01 part 15 of th8 Cornpthe5 Acl 20￿ to smdl ￿￿Panth. Ch￿M Tru• .. 20 2•L4 Th• ¢I￿nb•r Or¢h••tra gl Ewop• Rtyllir•tk￿ No. 015fft•4 Th• nthi c￿ 14 kn21 Iwm pwt 12-

THE CHAMBER ORCHESTRA OF EUROPE

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023

Notes
Net cash inflow / (outflow) from operating activities
18
Increase / (decrease) in cash and cash equivalents during
the year
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year		 2023
£
1,479,045
1,479,045
2,009,737
3,488,782		 2022
£
(266,274)
(266,274)
2,276,011
2,009,737

THE CHAMBER ORCHESTRA OF EUROPE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

1.1 Basis of preparation

The financial statements have been prepared under the historical cost convention and have been prepared in accordance with 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) (2[nd] edition, effective 1 January 2019) and the provisions of the Companies Act 2006 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The charitable company meets the definition of a public benefit entity under FRS 102.

1.2 Going concern

The Trustees have considered a period of 12 months from the date of approval of the financial statements when considering the going concern status of the charity. The charity has unrestricted reserves of £2,859,274. There are no material uncertainties regarding the going concern status.

1.3 Income and endowments (i) Donations and legacies

Income from Friends, donations and legacies are recorded on a receipts basis. Donated goods and services are recorded by recognising an equal donation and expense at the fair value of the resources received.

(ii) Income from charitable activities

Revenue from concerts and recordings are recorded on the accruals basis.

(iii) Other income

Other income is recognised on the accruals basis when the charity has entitlement to the income, it is probable that the income will be received by the charity and the income can be measured reliably.

1.4 Expenditure

Expenditure in the statement of financial activities is dealt with on the accruals basis and is classified as follows:

(i) charitable activities

This comprises all costs expenditure incurred by the charity in meeting its charitable objectives.

1.5

Accumulated funds

The unrestricted income funds represent the funds of the charitable company which are not designated for particular purposes.

Any funds receivable during the relevant accounting period but not utilised are carried forward as part of total charity funds.

1.6 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life as follows:

Musical instruments - 25% reducing balance - Computer equipment 25% reducing balance

1.7 Debtors

Short term debtors are measured at the transaction price, less any impairments. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest rate method, less any impairment.

THE CHAMBER ORCHESTRA OF EUROPE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)

Accounting policies (continued)

1.8 Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

1.9 Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest rate method.

1.10 Foreign currency

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the Statement of Financial Activities (including an income and expenditure account).

1.11 Music library

No value is placed on the charitable company’s library of music.

1.12 Presentational currency

The financial statements are presented in Sterling, due to the company being based in the United Kingdom, while the functional currency of the company is Euros.

1.13 Pensions

Defined contribution pension scheme

The company operates a defined contribution scheme for its employees. A defined contribution scheme is a pension scheme under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Financial Activities (including an income and expenditure account) when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the scheme are held separately from the company in independently administered funds.

1.14 Financial instruments

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financial transaction, where the transaction is measured at present value of future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

THE CHAMBER ORCHESTRA OF EUROPE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)

Accounting policies (continued)

1.14 Financial instruments (continued)

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the Statement of Financial Activities (including an income and expenditure account). If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the Statement of Financial Activities (including an income and expenditure account).

Financial assets are derecognised when:

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors that are classified as debt are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, this is when the contractual obligation is discharged, cancelled or expires.

(iii) Offsetting

Financial assets and liabilities are offset and 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.

2 Income and endowments – charitable activities

Income generated from charitable activities is stated net of value added tax, and represents amounts invoiced to third parties.

3 Other income

EU VAT reclaim
Royalties
Orchestra tax relief		 2023
£
-
8,418
1,185,156
1,193,574		 2022
£
956
2,795
262,264
266,015

THE CHAMBER ORCHESTRA OF EUROPE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)

4 Expenditure on charitable activities

Expenditure on charitable activities
Notes
Direct:
Players’ fees and expenses
Tour management fees
Travel expenses
Artists’ fees
Performance related costs
Withholding tax
Indirect:
Wages and salaries
9
Employer’s national insurance
9
Pension contributions
9
Telephone, postage, printing and sundry office supplies
Foreign exchange losses
Governance costs
5		 2023
£
1,299,048
104,399
1,061,542
353,619
254,469
51,579
205,115
18,519
10,324
49,571
317
51,246
3,459,748		 2022
£
1,501,670
104,399
1,131,511
489,640
384,799
47,226
182,582
17,406
10,817
26,805
9,513
64,833
3,971,201

Players’ fees and artists’ fees include payments made to independent professionals for the provision of services to the Orchestra. These fees include subsistence costs where applicable.

Withholding tax is deducted from gross concert fees for performances in Germany and is nonrecoverable due to the charitable company not being liable for corporation tax.

5 Governance costs

Auditor’s remuneration
6
Accountancy fees
Bank charges
6
Auditor’s remuneration
Audit fees
Accountancy and other services		 2023
£
24,413
25,245
1,588
51,246
2023
£
19,112
5,301
24,413		 2022
£
22,888
28,560
13,385
64,833
2022
£
18,599
4,289
22,888

THE CHAMBER ORCHESTRA OF EUROPE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)

7 Donations in kind

During the current and prior year, the charitable company benefited from the provision of office facilities and equipment made available by Friends of the charitable company. The Trustees are of the opinion that it is not practical to quantify this donation in kind, as the work required in obtaining professional advice would outweigh any possible benefit.

8 Taxation

The charitable company is a registered charity and is not liable to corporation tax in the United Kingdom.

9 Staff costs

Staff costs
Wages and salaries
Social security costs
Pension contributions
Average number of employees during the year:
Administration		 2023
£
205,115
18,519
10,324
233,958
2023
Number
4		 2022
£
182,582
17,406
10,817
210,805
2022
Number
4

No employee received emoluments exceeding £60,000 in the current or prior year.

During the current and prior year none of the Trustees (or any persons connected with them) received any remuneration or reimbursement of expenses.

THE CHAMBER ORCHESTRA OF EUROPE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)

10
Tangible fixed assets
Cost
At 1 January 2023
Additions
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022
11
Debtors
Trade debtors
Other debtors
Prepayments and accrued income		 Musical
instruments
£
44,178
-
44,178
39,998
1,045
41,043
3,135
4,180		 Computer
equipment
£
3,236
-
3,236
3,180
14
3,194
42
56
2023
£
191,347
30,301
33,226
254,874		 Total
£
47,414
-
47,414
43,178
1,059
44,237
3,177
4,236
2022
£
226,288
12,765
8,952
248,005

Financial assets that are debt instruments measured at amortised cost comprise trade debtors and accrued income amounted to £191,347 (2022: £226,288).

THE CHAMBER ORCHESTRA OF EUROPE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)

12 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Trade creditors
Taxation and social security
Other creditors
Accruals and deferred income		 2023
£
89,698
6,913
12,875
778,073
887,559		 2022
£
84,925
7,525
-
21,500
113,950

In the current year, accruals and deferred income includes £750,000 (2022: £nil) of deferred income in relation to concerts to be performed in the upcoming year.

Financial liabilities measured at amortised cost comprise trade creditors, general accruals (excluding the audit fee accrual) amounted to £89,698 (2022: £84,925).

13 Contingent assets

The contingent asset that has not been recognised in the Balance Sheet is the potential orchestra tax relief receivable for the year ended 31 December 2023. The Trustees expect to make a claim, however the value and timing of this receipt is uncertain. The Trustees hope to receive approximately 50% of the eligible expenses.

14 Status of the charitable company

The charitable company, a registered charity, is a company limited by guarantee and not having share capital. The subscribers to the Memorandum of Association, and any other persons which the committee admit, are members of the charitable company. At present, the membership is 3 (2022: 3), each member guaranteeing the charitable company up to an amount of £1. There is no controlling party.

15 Related party transactions

There were no related party transactions or balances during the current or prior year.

16 Total charity funds

Total charity funds
At 1 January 2023
Net income / (expenditure)
At 31 December 2023		 2023
£
2,148,028
711,246
2,859,274		 2022
£
2,209,972
(61,944)
2,148,028

THE CHAMBER ORCHESTRA OF EUROPE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)

17 Analysis of net assets
2023
£
Fund balances as at 31 December are represented by:
Fixed assets
3,177
Debtors
254,874
Cash at bank
3,488,782
Creditors: amounts falling due within one year
(887,559)
At 31 December
2,859,274
All funds are unrestricted.
18 Reconciliation of net movement in funds to net cash flow from operating activities
2023
£
Net movement in funds
711,246
Add: depreciation charge
1,059
Increase in debtors
(6,869)
Increase in creditors
773,609
Net cash inflow / (outflow) from operating activities
1,479,045		 2022
£
4,236
248,005
2,009,737
(113,950)
2,148,028
2022
£
(61,944)
1,413
(218,642)
12,899
(266,274)