2022-03-31-accounts - City Of London Sinfonia Limited

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Company number: 1692341 Charity number: 286818

CITY OF LONDON SINFONIA LIMITED TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

CITY OF LONDON SINFONIA LIMITED

YEAR ENDED 31 MARCH 2022

	Page(s)
Chairman’s report	1-5
Trustees’ report	6-12
Independent auditors’ report	13-16
Consolidated Statement of financial activities
(including income and expenditure account)	17
Consolidated balance sheet	18
Charity balance sheet	19
Consolidated Statement of cash flows	20
Notes to the financial statements	21-32

CITY OF LONDON SINFONIA LIMITED

CHAIRMAN’S REPORT

I have twice been stuck in Tokyo Midtown Tower above the 50th floor during an earthquake – and have felt enormous gratitude to the architect for the strength of the foundations, and the flexibility of the structure as it absorbed the shock. And this year I have found myself feeling the same gratitude about the way our Orchestra coped with the shocks of the COVID- “earthquake”- and its aftermath. Coping not just because of its 50 year old foundations which we celebrated this year, but also because of the actions we took last year to prepare for the aftermath which has hit the whole performing arts sector.

It has been a very tough year for us all, and I will set out the context for our results in terms of the changes in landscape faced by many, as well as some specific internal “aftershocks” during the year and how we have reacted to them. Given all the continuing uncertainties we read about in the media my Board colleagues and I have preferred to delay this report until the view through the misty windscreen became clearer regarding the outcome for next year ending 31 March 2023. I am happy to be able to report that we can say with confidence that stability has been restored in 2022/23, and that we look forward with the right balance of prudence and confidence to the opportunities which our differentiated positioning should let us take advantage of as we move forward enthusiastically on our mission as described in previous reports.

1. Our Foundations and Flexibility

My Chairman’s reports over the last decade have discussed our strategy openly, as CLS has moved away from the vulnerability of relying on a mix of our performances and hired engagements to become a fully integrated programme on and off stage with ever-closer relationships with a wider range of partners for music-making and our Participation work. 2020 was a year of survival while investing in new people to continue implementation of the strategy. 2021 saw us focus on key priorities for an unexpected “new world”. These priorities included the start of a branding exercise; a review of the strategic, operational and financial model; new forms of reaching and retaining our audiences including digital and social media to support our musicians during a most difficult year; getting closer to partners to increase co-creativity and accessibility; using different sizes of ensemble as set out in our “Way Ahead” strategy to reach wider audiences; conservative and flexible budgeting to deal with the new financial uncertainties; increasing stewardship of donors at a difficult time for philanthropy and not overrelying on the highly valuable ACE and DCMS crisis funding.

All of these allowed us to survive and recover some normality this year – and, most importantly, at the end of 2021 we tripled our reserves to £90,000, of which £30,000 was unrestricted, to allow ourselves to continue investing prudently in 2022.

2. Our Reactions to the Aftermath

In spite of our refocusing and planning during the first year of COVID-survival, it is fair to say that the landscape for our sector in the aftermath period of the second year was far bleaker than expected. Venues were very reluctant to commit to dates; trusts and foundations were short of income and focussed on front-line sectors; existing audiences returning very cautiously, and new ones did not appear for many reasons. In summary more of a moonscape creating the need for our whole sector to “reboot”.

However, the Board felt that we should not go into hiding and wait for new vegetation to grow, but rather invest the reserves built up last year to maintain a reduced investment programme focussed on the key elements for the future in our differentiated strategy: -

Own performances.

We felt that a use of our reserves should be to continue building a stronger and stronger position artistically – developing the skills of our musicians and doing more concerts using varied sizes of ensemble as examples of sharing with a wider audience. And for our 50th Anniversary year our Creative Director and leader Alex Wood put together a very creative 6 concert series called Origin which culminated in the “This is CLS” celebration with full forces in Southwark Cathedral, displayed our musicians’ superb playing unaffected by the vicissitudes of the past two years.

CITY OF LONDON SINFONIA LIMITED

CHAIRMAN’S REPORT

New Commissions.

Always a hallmark of CLS, we included commissions from Dobrinko Tabakova, Huw Watkins and Donghoon Shin. A major new concert length commission from Cheryl Frances-Hoad, “Scenes from the Wild” (which went on to win the Ivor Novello Composer Award for large orchestral works) displayed CLS’s integrated approach of Participation and performance, exploring themes around the environment and neurodiversity.

Hired Engagements (HE) and Partnership.

With no Opera Holland Park (OHP) season in 2020, and most HE’s cancelled, this has been a year of very gradual awakening and testing of returns to qualified “normality”. OHP mounted a full season of 53 performances over 5 operas – even if on much reduced orchestration - I will not forget Eugene Onegin with its strong cello scoring played by two cellos instead of eight! - but it was great to be back. We started to work again with our old partners in engagements at St Paul’s Cathedral, Chilterns Festival, Southwark Cathedral, Spitalfields Festival and Salisbury Cathedral. And we added new partnerships such as Essex University and the Oxford Bach Choir and the Orchestra showed their joy when playing with Gregory Porter at the Royal Albert Hall after two COVID-induced postponements.

Participation Activities.

With doors opening again gradually – either physically or digitally – our investment in training, our musician’s development as leaders and artists has led to a very active and creative year. We have strengthened our existing partnerships with healthcare providers, and, in recognition of our expertise in this field have, provided training and development to Britten Pears Arts, Southbank Sinfonia and the Royal Academy of Music - all new partners for our work. Comfortable Classical and devising and creating performance such as The Maple Tree (by four of our musicians) show how individual artists can come together to bring their whole selves to our work. This is truly inspiring and a beacon for this sector – recognised, for example, by our nomination for the ACE Digital Transformation award for Sound Young Minds.

Audiences.

As made clear in the Indigo reports on our sector, everyone has been finding it hard to get back to pre-COVID levels of audiences – existing and new. We have adapted our website and social media messaging to incorporate our lessons learnt during lockdown. And we are now rolling out a trial marketing plan to get the necessary data to rethink our audience segmentation and messaging in this new world of home-working, concepts of “entertainment” in the widest sense, and social priorities.

Friends and Supporters.

With grants and donations decreasing this year from its 2020/21 high by 14.1% and wanting on our side to show how much we value our supporters, we have put together a celebratory programme of events for those close to the CLS community, starting in autumn 2021 and continuing into summer 2022.

3. SOME AFTERSHOCKS AND OUR RESPONSES

In addition to this programme to deal with the aftermath, we had to respond to a number of internal events this year. The first was Matthew Swann leaving the CEO post he has held with us for nine years. The Board would like to thank him for all his input during the changes of direction and strategy we have been through and wish him well in his next position.

CITY OF LONDON SINFONIA LIMITED

CHAIRMAN’S REPORT

His replacement was delayed by over six months of discussions with a potential complementary merger partner (non-orchestral) which, after extensive due diligence on the part of both organisations, finally did not go ahead. Combined with the loss of our marketing manager Natasha Allery, this put a huge strain on the rest of our small organisation – and especially on our Development Director, Emily Lloyd, who found herself running/acting as the marketing department until we found Gabriella Neuditschko, who had previously undertaken her Goldsmiths Internship with us, and was able to hit the ground running at high speed, producing the marketing plan we are currently trialling.

Despite the excellent efforts of the executive team and the stewardship of our COO Elaine Baines, who has been acting as interim CEO, these changes did damage the year’s performance significantly. When we did at last begin a search for a new CEO we received 26 applications, including managers of some of the best-known institutions – all attracted they said, by the highly differentiated and socially relevant direction of our journey. The result is that we have a magnificent successor to Matthew in Rowan Rutter who will arrive with considerable leadership experience from other performing arts sectors, bringing a fresh and enquiring outlook that has benefitted other organisations she has been working with. She starts in April 2023, but has already met a number of the musicians (three were on the interview panel) and the Executive Team, as well as the Board.

4. Our Financial Results for the Year

Hopefully the sections in this report on “aftermath” and “aftershocks” should provide the context for the outturn of the year. Highlights are as follows: -

Gross income rose by 41.3% to £1,008,122 from the low base of last year.
Total expenditure rose by 70.4% to £1,156,711 as a result of the mix of increase in activity; a return to in-person Participation programme; increased running costs as operations restarted, and the continuation of our investment programme started in 2020 for our future development. Direct costs (excluding staff costs) increased by 275%, as income from our overall charitable activities/projects increased by 400%.
Our Orchestral Tax Relief claim was £79,710 as a result of more activity and the doubling of what can now be claimed – long may this last, Mr Chancellor of the Exchequer!
As noted above, grants and donations have decreased by 14.1% to £530,770. I fear that “Civilisation”, and therefore Culture and the Arts have become lower priorities for politicians and others. Trusts and Foundations have been hit by higher levels of appeals, but with lower income to meet them, have had to eat into capital even to pay out, typically, grants 50-70% smaller than what is asked. The industry standard success rate for applications has dropped to less than 5% from a pre-covid norm of 47%. In our case, the number of applications was not optimised as a result of the impact of the “aftershocks” described above but in contrast it was pleasing to note that donations and patrons increased by 14.8%, and the Board would like to express the deepest gratitude for all these donations that have kept us afloat and investing.
The net position for the year is an overall deficit of £68,879 for 2021/22 compared to a surplus of £61,571 in 2020/21. Total reserves, including restricted funds, at the end of March 2022, therefore, are now £21,117 after using last year’s additions to reserves largely for investment in players’ skills, our branding exercise, organisational changes, to create a worthy 50th Anniversary year and other areas described in my report above.

CITY OF LONDON SINFONIA LIMITED

CHAIRMAN’S REPORT

5. Looking Ahead and Going Concern

I and my colleagues fully realise that the reader may find it difficult to detect the trends from the above four sections. How does one weight, and weigh up possibilities for the speed of recovery from the “aftermath”; the possibility of further aftershocks in the world on a macro level, and their impact on our micro sector; shifts in behaviour of our audiences and their tastes in terms of how they spend their time and money; the Arts continuing to be the recipient of grants, donations and philanthropy……?

The Board have shared concerns about the continuing foggy view through the windscreen at this time, which is why we wanted to wait for as clear a view as possible on the outcome of the year ending March 2023 before publishing this report and accounts. For various reasons, despite the uncertainties ahead in various global aspects, we feel very confident about the future of CLS for a number of reasons: -

From management accounts, we are close enough to the 2023 year end to be comfortable that we will be making a small profit for the year and adding to reserves. In other words, after a year of deficit for the reasons given above, we have proactively returned the company to stability and positive financial performance during 2022/23.
After a year spent mainly with Elaine Baines steadfastly combining the roles of CEO and COO, and a depleted team on the income generating side, we have now got a re-energised and highly motivated executive team and musicians to support these activities with a new leader with precisely the skills, experience and values we have been seeking.
We are continuously reviewing our strategy and tactics against what is going on in the market and in the new worlds for all our stakeholders. And budgets retain sufficient flexibility to make adjustments as needed, as the year’s operational and financial positions become clearer.
We now will be focussing on a development plan which will line up with our new strategic focus as drawn up with incoming CEO Rowan Rutter which is likely to focus on increasing work, revenue sources and reserves. This is against a background of encouraging increased generosity in 2022/23 from existing funders, patrons, trustees and partnerships. In addition, we will forge ahead with the implementation of our critical EDI strategy (agreed and published during the course of the year) across all of our activities.

We therefore believe that CLS should still pursue its journey of quality playing, impact work, drawing in audiences and communities in the prudent but still proactive manner that it has done over the last decade. Which leads me to a Chair’s most enjoyable and extremely important task – namely to thank so many people who are all participants in, and shapers of, our exciting journey. And so, my thanks to our glorious musicians who are still at the centre of everything we do; to the Executive Team who have had to work so hard this year especially to make it all happen; to the Board who have had to put in a lot of extra time on so many sensitive topics this year, and who have been so generous as donors as well. I usually pick out one Board member for special thanks, and I would like this year to thank Patricia Millet not only for continuing to Chair our important Participation Advisory Group so ably, but for the award she has donated to allow two of our musicians each year to develop their artistic practice which contributes so much to our Participation programmes, admired and followed both inside and outside the UK.

CITY OF LONDON SINFONIA LIMITED

CHAIRMAN’S REPORT

Finally, a ’ thank you’ to all our participants and supporters who justify our activities in the first place and give us such positive feedback and satisfaction. Hopefully we will suffer no more serious “aftershocks” or other natural disasters, and instead can look forward to keeping music in the central position it so much deserves to be in and needs, with our help, to continue to carry out the important work in our communities to help transform lives for the better.

John Singer Chairman

Date: 29 March 2023

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

CITY OF LONDON SINFONIA LIMITED

The trustees (who are also directors of the company for the purposes of company law) present their report and the audited group and parent company financial statements of City of London Sinfonia Limited for the year ended 31 March 2022.

The trustees confirm that the report and the group and parent company financial statements of the charity comply with the current statutory requirements, the requirements of the governing document, and the provisions of "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 2019) (Charities SORP (FRS 102)).

Reference and administrative information

Company number 01692341 (England and Wales) Registered charity number 286818 Chairman John Singer Interim Chief Executive Officer Elaine Baines Registered office and principal office address 1[st] Floor Radisson Court 219 Long Lane London SE1 4PB Independent auditors Lindeyer Francis Ferguson Limited North House 198 High Street Tonbridge Kent TN9 1BE Principal bankers Lloyds Bank plc 35 Whitechapel High Street London E1 7PH

Structure, governance and management

City of London Sinfonia Limited was incorporated on 19 January 1983 and is a charitable company limited by guarantee. It has no share capital and is governed by a memorandum and articles of association. In the event of a winding up, the member’s liability is limited to £5. Past members who had resigned in the twelve months preceding the winding up are also required to contribute up to £5 each for debts incurred whilst they were members. The members have no entitlement to surplus assets on a winding up; any such assets will be given or transferred to some other charitable institution or institutions with similar charitable objects.

The Board of Trustees is responsible for selecting and recruiting suitable trustees to office at the Annual General Meeting. There is no maximum number of trustees that may be elected to the board. Trustees may serve for a period of nine years, subject to re-election every three years. After nine years of service, trustees may remain on the board subject to an annual re-election provided more than 75% of the trustees support their re-election. There is no age limit imposed on trustees.

New trustees are inducted through an intensive briefing by the Chief Executive and are given a job description, the most recent audited accounts and the current year budget.

CITY OF LONDON SINFONIA LIMITED

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

Policy decisions are made by the full board of trustees, with subcommittees for Finance and Operations, and Development and Communication, with both bodies reporting to the full board on a quarterly basis. The day-to-day decisions are made by the Chief Executive and the full-time administration staff of seven others.

The Chief Executive’ remuneration is set by the board of trustees, and does not include any bonus or performance related remuneration. The Chief Executive then sets the pay for the remainder of the administration, with annual increases for all staff agreed by the board of trustees. Only one member of the administration staff receives any performance related remuneration (Philanthropy and Enterprise Manager), and this is agreed with the Chief Executive.

Key Management personnel include:

Matthew Swann (Chief Executive Officer resigned 31 December 2021) Elaine Baines (Chief Operating Officer and interim Chief Executive Officer from 1 January 2022)

Trustees

The trustees serving during the year were:

John Singer (Chairman) Richard Spiegelberg (Deputy Chairman) Paul Cutts Sally Davis Teruko Iwanaga OBE Joanna Livesey Patricia Millett Alan Morgan Mark Redman Julian Schild William Spurgin Countess Sarah Thun-Hohenstein

Objectives and activities

The mission and vision of the orchestra, as adopted by the trustees, is as follows:

Our vision is of a world where musicians are an integral part of every community, meeting people across all of aspects of society and fully reflecting the communities where they are active.

City of London Sinfonia’s musicians are at the forefront of our vision, engaging with people from all backgrounds in shared moments of connection wherever we meet them. Our collaborative approach and practice in healthcare, wellbeing and social care settings underpins all our activity.

Our mission is manifested in two major areas of activity which are: (i) concert and staged performances; and (ii) participatory activity in education, community and health and social care settings.

In planning our activities for the year, the trustees have considered the Charity Commission’s guidance on public benefit and fee charging and our new mission, vision and values. The charity relies on sponsorship, grants and the income from fees and charges to cover its operating costs. In setting the level of fees, ticket prices, and concessions, the directors give careful consideration to the accessibility of all events for those on low incomes.

CITY OF LONDON SINFONIA LIMITED

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

The aim of the orchestra is to transform the lives of individuals across all areas of society through outstanding music making. Specifically, in a usual year we give over 75 performances every year and spend over 150 days every year in education and wellbeing settings including:

in environments where social background often creates a barrier to musical and artistic creativity and ambition;
in hospitals for young people with severe, life-limiting, psychiatric and challenging conditions and illnesses;
with older people, many with dementia diagnoses in end-of-life residential social care;
• performances which by taking place in non-traditional venues, engaging with audiences in immersive and interactive ways, or involving collaborations with artists from different disciplines attract those who would not normally attend classical music events; and
performances and activities for communities who because of location or opportunity would not otherwise experience outstanding professional music-making.

We place equal value and bring the same approach to everything we do: the highest quality, and a distinctive, ‘seriously informal’ style of performance that removes the barriers between musicians and audiences so that people can experience the transformative power of music.

To ensure that we are achieving these aims, we will continue to ask questions of ourselves, ensuring that we remain at the forefront of best practice, both in attracting audiences and in schools, hospitals and care homes. We will partner with leading research institutions to ask us challenging questions, and provide the hard evidence of the benefits of our activity. Specific current evaluation methods include:

the use of data from our box office system to ensure that we are reaching as wide an audience as possible, including approaching new audience members directly for feedback on our effectiveness at bringing new audiences to classical music;
partnership with leading academic and clinical research institutions and best practice observational evaluation methodology; and
partner feedback, particularly as regards our work in schools and hospitals, to ensure that our projects best meet the needs of those young people whose lives we seek to transform.

In the financial year 2021-22 we celebrated the 50th Anniversary of the founding of the orchestra with a 6 concert series at Southwark Cathedral called Origins. As well as celebrating 50 years of joyful music making, it acknowledged the legacy of our founder Richard Hickox, and demonstrated the orchestra’s continuing commitment to commissioning new works. The season included new commissions from Dobrinka Tabakova, Huw Watkins, and Donghoon Shin and a major new concert length commission from composer Cheryl Frances-Hoad, ‘Scenes from the Wild’, based on the memoir by the young autistic author Dara McAnulty, and exploring themes around the environment and neurodiversity.

Our activities continued to feel the after effects of the pandemic, but through reinventing our approach and reacting creatively still included:

Engaging with performance partners including Opera Holland Park (where we delivered a full season of 5 operas), and St Paul’s Cathedral, to ensure safe working practice in an unstable environment of changing covid restrictions.
A programme of events for our friends, supporters and patrons, starting in autumn 2021 and continuing into summer 2022.
Returning in person for Comfortable Classical performances at Canada Water theatre - meeting babies and toddlers who had arrived into the world during lockdown who mixed with older generations who had spent many months in isolation at home.

CITY OF LONDON SINFONIA LIMITED

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

The development of Maple Tree - a non verbal performance created and led by CLS leaders Alex Wood, Katherine Spencer, Dan Bates and Joely Koos - and its tour to Britten Pears Arts as part of their Christmas Programming and also to Colchester Arts Centre.
The continued development of our flagship projects, Room to Room Music and Sound Young Minds, and their growth while pivoting online and in-person. The expansion into Cambridgeshire hospital units and more Jewish Care Homes.
The development of our musicians - their open and responsive improvisation allowing connection with people of all ages and backgrounds and their growing confidence and leadership skills. They are bringing so much more to CLS and taking us in many new and exciting directions.

In line with our agreed EDI policy, CLS appointed EDI champions at trustee and exec team levels, completed a detailed EDI questionnaire throughout the whole organisation and agreed a long term EDI implementation strategy.

During a difficult year of unclear guidance on the lifting of covid restrictions and continuing reduced inperson delivery in healthcare settings, we reached a total audience of 45,657, and worked with 31 different partner organisations.

The charity’s entire resource is directed towards delivering these activities, with £1.039 million (202021 £567k million) spent on realising charitable activities, compared to £118k (2020-21 £112k) spent on raising funds.

Fundraising

CLS raises charitable income from charitable trusts and individuals. In doing so it makes approaches to charitable trusts who publicly state that they seek to support music and the arts, or innovative wellbeing measures such as our participation programme, or charitable trusts where the trustees are known to CLS trustees and have invited CLS to apply for funding.

CLS makes approaches to individuals for charitable income that have attended CLS performances or events, or who are known personally to trustees of CLS.

CLS does not employ third party fundraisers, and we do not make unilateral unsolicited approaches to individuals.

CLS is registered with the Fundraising Regulator and adheres to that regulator’s code of practice. In addition, CLS is GDPR compliant.

CLS has not received any complaints about its fundraising activity.

Financial review

The Chairman’s report outlines our fundraising performance for the year and overall financial position, but in summary:

Total income year on year increased by £294,763 to £1,008,122, reflecting the return to artistic activity after the lifting of Covid-19 restrictions as outlined in the Chairman’s report;
Orchestral Tax Relief was introduced on 1 April 2016, which CLS, via its subsidiary company, CLS Productions Limited, will be submitting a claim for £79,710.
Our reserves carried forward decreased to £21,117 (down from £89,996 in 2020-21);
Total fundraising (business and non-business) was £530,770 (2020/21 £617,918), including total Arts Council England funding of £130,125 (2020/21 £131,332);
Participation projects continue to be very well supported by funders and partners;

CITY OF LONDON SINFONIA LIMITED

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

Our principal funding sources remain hired engagements, grants from trusts and foundations, individual donors, Arts Council England, and box office income, and whilst there was an increase in income from the 2020-21 financial year, activity has not yet returned to pre-pandemic levels.

The financial environment that the orchestra operates in continues to remain challenging: charitable trust and foundation investment dividends remain low; statutory funding from central government and lottery income is decreasing / standstill; individual and corporate philanthropy is affected by continuing economic and political uncertainty.

This environment, however, is one that affects every professional performing arts organisation in the UK, and City of London Sinfonia has taken every possible step to ensure that our brand and vision are differentiated and as attractive to funders as possible.

Going Concern

After making appropriate enquiries, the board of trustees has a reasonable expectation that the charitable company has adequate resources to continue in existence for the foreseeable future. For the reasons detailed in Note 1 in the Statement of Accounting Policies, the trustees have adopted the going concern basis in preparing the financial statements.

Pricing policy

CLS own-promotion concerts are priced to be affordable for all with concession prices available for young and older people. Our “5IVER” scheme offers £5 tickets for 16-25 year olds at all own-promoted concerts. These concerts require significant sponsorship and/or support from designated funds to subsidise the costs. For season 2022-23 ticket prices have been held at previous season levels to encourage past audience members to re-engage with the orchestra.

Reserves

The trustees have determined that the appropriate minimum level of unrestricted reserves should be equivalent to three months’ operational expenditure of approximately £124,000 in unrestricted funds, which is a level of reserves that the trustees deem would enable the charity to find new funding for its charitable activities, should the very unlikely scenario occur that all current funding resources were to cease, or, if necessary, to enable the charity to cease operating in a timely and prudent manner.

The group’s reserves at 31 March 2022 were £21,117 of which £13,018 is restricted funds and £1,875 is designated leaving unrestricted reserves of £6,224. This represents a decrease of £68,879 in the total reserves on the previous year (2021: £89,996). The current multi-year strategic plan includes a plan of how to achieve an unrestricted reserves figure in excess of £124,000 which the Trustees deem the appropriate minimum level.

Plans for future periods

Our plans for 2022-23 include:

A seven concert series, The World Rediscovered, staged in Southwark Cathedral, Queen Elizabeth Hall, Village Underground and the Round Chapel Hackney. Developed around the orchestra’s unique and relaxed style of presentation the series aims to encourage new audiences to discover classical music and to tempt pre-covid concert goers back into the concert hall.

The series builds on partnerships we have developed during the past few years with Fabers ( 14 January QEH) and Spitalfields Music – the concerts at Village Underground and the Round Chapel will be presented and promoted in collaboration with Spitalfields Music.

CITY OF LONDON SINFONIA LIMITED

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

We will continue to deepen the impact of our work in children's hospital by partnering with UCHL's play team to create more project-based work with targeted groups of patients receiving long-term treatment and their families as well as 'hospital take-overs' at Evelina Children's Hospital with week-long residencies.

We are also excited about the continuing development of our musicians who are leading more strands of our work including Mindful Music sessions as part of social prescribing programmes, Room to Room Music sessions and Comfortable Classical performances. The two recipients of our inaugural Participation Development Award are also devoting time to developing their artistic practice with the aim of influencing our participation and performance work. The final concert in the 22-23 series will be devised and directed by one of these musicians and will incorporate fully our concert and participation programme and all the skills learned within each.

Implementing our Equality, Diversity and Inclusion (EDI) strategy as referred to in the Chairman’s statement above, including training at board and executive team levels.

Risks

CLS keeps a regularly updated Risk Register which identifies risk in four key areas: Governance; Finance; Operations; and Artistic. Each area of risk is analysed for impact and probability to ascertain the level of unmitigated risk. An individual or group within the organisation is assigned responsibility for the identified risk, regular mitigating action to be taken, and when that action should be taken, including any current activity. Based on this mitigating process, the level of mitigated risk is ascertained. These areas of risk include:

Finance: like all arts organisations, CLS relies on charitable giving, box office income and commercial income which have an inherent degree of uncertainty. The Chairman’s Report and this Report’s sections on going concern and finance outline the mitigating actions taken to reduce this risk, as well as the regular and close monitoring of externally prepared monthly management accounts by the Trustees.
Child and Vulnerable Adult Safeguarding: CLS’s participation activity necessitates engagement with children and vulnerable adults, and while the Trustees deem any breach of policy in this area as unlikely, all CLS staff and musicians undergo enhanced Disclosure and Barring Service checks, and the Director of Participation keeps and regularly reviews our Child and Vulnerable Adult Protection Policy, with all staff and musicians who come into contact with those individuals made aware of expected levels of behaviour.
Health and Safety in Performance Areas: the performance of music involves very high decibel levels which, if musicians were left unprotected, could incur serious hearing loss or damage. CLS staff adhere to best practice in providing protection for these noise levels, and these protections are available at every CLS performance, including state of the art ‘acoustic shields’ that reduce noise levels for individual musicians.
In the 2021-22 year and ongoing, CLS’s approach to managing risk also includes specific risk assessments for each project and performance to mitigate the risks associated with the COVID19 pandemic and the need for additional protection against infection for all our musicians, staff and audiences.

The Risk Register is regularly reviewed by the senior management team, the Finance and Operations Committee and the Board, and was last reviewed in February 2023.

Trustees’ responsibilities

The trustees, who are also the directors of the company for the purposes of company law, are responsible for preparing the Trustees’ Report and the financial statements in accordance with

CITY OF LONDON SINFONIA LIMITED

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year. Under that 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:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgments and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditors

Each of the persons who are trustees at the time when this trustees' annual report is approved has confirmed that:

so far as that trustee is aware, there is no relevant audit information of which the charitable company's auditors are unaware
that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information.

The auditors, Lindeyer Francis Ferguson Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

This report has been prepared in accordance with the provisions applicable to small companies subject to the small companies’ regime in Part 15 of the Companies Act 2006.

Approved by the board of trustees on 29 March 2023.and signed on its behalf by:

John Singer Chairman

CITY OF LONDON SINFONIA LIMITED

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 MARCH 2022

Opinion

We have audited the group and parent company financial statements of City of London Sinfonia Limited (“the charitable company”) for the year ended 31 March 2022, which comprise the Consolidated Statement of Financial Activities, the Balance Sheets, the Consolidated Statement of Cash Flows and the 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:

give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 March 2022 and of the group’s incoming resources and application of resources for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
have been prepared in accordance with the requirements of the Companies Act 2006.

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.

Material uncertainty relating to going concern

We draw attention to Note 1 to the financial statements, in relation to going concern. This indicates that the charity is experiencing the continuing long term impact of COVID-19 on the industry and as a result an operating loss on the year meant that that the free reserves at the balance sheet date dropped and remained below the policy level. As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern .

Our opinion is not modified in respect of these matters.

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.

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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

CITY OF LONDON SINFONIA LIMITED

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 MARCH 2022

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the trustees’ report, which includes the directors’ report for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

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 directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 require us to report to you if, in our opinion:

the parent charitable company has not kept adequate and proper accounting records or returns adequate for our audit have not been received from branches not visited by us; or
the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 11 and 12, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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.

CITY OF LONDON SINFONIA LIMITED

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 MARCH 2022

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 obtained an understanding of the legal and regulatory framework applicable to the preparation of the financial statements of the charity, and the procedures that management adopt to ensure compliance. We have considered the extent to which non-compliance might have a material effect on the financial statements, and in particular we identified: The Companies Act 2006 and The Charity SORP (Statement of Recommended Practice) Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102).

We have also identified other laws and regulations that do not have a direct effect on the amounts or disclosures within the financial statements, but for which compliance is fundamental to the charity’s operations and to avoid material penalties, including employment law, health and safety law and data protection regulations.

Having reviewed the laws and regulations applicable to the charity, we designed and performed audit procedures to obtain sufficient appropriate audit evidence. Specifically, we:

Selected a team with sector experience for completing the audit;
Obtained an understanding of the charity’s procedures for ensuring compliance with laws and regulations;
Obtained and reviewed internal policy and procedure documents;
Made enquiries of management and the trustees regarding whether they were aware of any actual or suspected incidences of non-compliance with laws and regulations;
Obtained and reviewed meeting minutes; and
Reviewed the completeness and accuracy of any disclosures made in the financial statements.

We assessed the susceptibility of the charity’s financial statements to material misstatement, including considering how fraud might occur. This was performed by:

Making an assessment of the charity’s systems and controls, including identifying any weaknesses and considering the risk of management override of controls;
Assessing the susceptibility of the charity’s financial statements to material misstatements, including considering how fraud could occur;
Considering if there are any incentives or opportunities for management to manipulate financial results;
Obtaining and evaluating the trustees’ assessment of the risk of fraud, and enquiring as to whether they were aware of any actual or suspected fraud;
Reviewing the accounting policies and accounting estimates for signs of management bias;
• Identifying key risks relating to irregularities including the completeness of income, decrease in creditor balances and allocation of support costs and staff costs across activities; and
• Reviewing journal entries for signs of management bias or override of controls.

We designed and performed audit procedures to respond to the risks identified, including review of relevant correspondence and minutes, discussions with management and corroboration of their statements, a review of systems and controls, a review of accounting estimates and journal entries and performing substantive testing in respect of completeness of income and creditors.

The audit has been planned and performed in in accordance with auditing standards, however, because of the inherent limitations of audit procedures there remains a risk that we will not detect all irregularities,

CITY OF LONDON SINFONIA LIMITED

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 MARCH 2022

including those that may lead to material misstatements in the financial statements. There are inherent difficulties in detecting irregularities, and irregularities that result from fraud may be more difficult to detect than irregularities that result from error, for example due to concealment, override of controls, collusion or misrepresentations. In addition, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less audit procedures are able to 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: 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 and 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 charitable company, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

A S Healey FCA CTA DChA Senior Statutory Auditor

For and on behalf of: Lindeyer Francis Ferguson Limited Statutory Auditors Chartered Accountants

Date: 30 March 2023

North House 198 High Street Tonbridge Kent TN9 1BE

CITY OF LONDON SINFONIA LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

2022 Notes £ Income from: Donations and grants 1 374,442 Charitable activities 2 477,352 Total income 851,794 Expenditure on: Raising funds 3 117,612 Charitable activities 4 836,270 Total expenditure 953,882 Net (expenditure) / income before tax 7 ( 102,088) Corporation tax credit 9 79,710 Net (expenditure) / income ( 22,378) Transfers between funds - Net movement in funds ( 22,378) Reconciliation of funds: Total funds brought forward 30,477 Total funds carried forward 14 8,099 Unrestricted funds	Restricted funds 2022 £ 156,328 - 156,328 - 202,829 202,829 ( 46,501) - ( 46,501) - ( 46,501) 59,519 13,018	Total funds 2022 £ 530,770 477,352 1,008,122 117,612 1,039,099 1,156,711 ( 148,589) 79,710 ( 68,879) - ( 68,879) 89,996 21,117	Total funds 2021 £ 617,918 95,441
			713,359 111,956 566,962
			678,918 34,441 27,130
			61,571 -
			61,571 28,425
			89,996

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

All income and expenditure derives from continuing activities.

CITY OF LONDON SINFONIA LIMITED

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2022

Notes Fixed assets: Tangible assets 10 Current assets: Debtors 12 Cash at bank and in hand Liabilities: Creditors: amounts falling due within one year 13 Net current assets Total net assets The funds of the charity: Restricted income funds Unrestricted funds Total funds 14	£ 220,781 16,978 237,759 ( 226,558)	2022 £ 9,916 11,201 21,117 13,018 8,099 21,117	£ 155,648 7,764 163,412 ( 89,686)	2021 £ 16,270 73,726
				89,996
				59,519 30,477
				89,996

Approved by the board of trustees on 29 March 2023 and signed on its behalf by:

….......................

J Singer Chairman

Company number: 01692341

CITY OF LONDON SINFONIA LIMITED

CHARITY BALANCE SHEET AS AT 31 MARCH 2022

Notes Fixed assets: Tangible assets 10 Investments 11 Current assets: Debtors 12 Cash at bank and in hand Liabilities: Creditors: amounts falling due within one year 13 Net current assets Total net assets The funds of the charity: Restricted income funds Unrestricted funds Total funds 14	£ 220,781 16,979 237,760 ( 226,560)	2022 £ 9,916 1 9,917 11,200 21,117 13,018 8,099 21,117	£ 155,648 7,764 163,412 ( 89,687)	2021 £ 16,270 1
				16,271 73,725
				89,996
				59,519 30,477
				89,996

Approved by the board of trustees on 29 March 2023 and signed on its behalf by:

J Singer Chairman

Company number: 01692341

CITY OF LONDON SINFONIA LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

Notes Cash flows from operating activities: Net cash provided by operating activities A Cash flows from investing activities: Purchase of tangible assets Net cash used by investing activities Change in cash and cash equivalents for the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year A. Reconciliation of net income to net cash flow from operating activities Net (expenditure) / income for the year As per statement of financial activities Adjustments for: Depreciation charges (Increase) / Decrease in tax recoverable Decrease in debtors Decrease / (increase) in creditors Net cash provided by operating activities	2022 £ 9,809 ( 595) ( 595) 9,214 7,764 16,978 ( 68,879) 6,949 ( 79,710) 14,577 136,872 9,809	2021 £ 8,908 ( 2,618)
		( 2,618) 6,290 1,474
		7,764
		61,571 6,881 135,491 16,620 ( 211,655)
		8,908

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

CITY OF LONDON SINFONIA LIMITED

1 ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of preparation

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)" (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

City of London Sinfonia Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial statements are presented in pounds sterling and rounded to the nearest pound.

Consolidation

The financial statements consolidate the results of the charity and its wholly owned subsidiary CLS Productions Limited on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

Going Concern

Although there has been an improvement in the external market in which the charitable company operates the Trustees acknowledge that there is still a material uncertainty due to the continuing long term impact of COVID-19 on the industry as a whole. The Orchestra has, however, weathered the storms of the past few years and the financial position of the orchestra is beginning to show stability. It is anticipated that by the end of the 2022/23 financial year the Orchestra will have increased its reserve position.

During 2021/22, the charity was successful in securing COVID-19 related funding, which supported activity for the first half of the year. The reluctance of audiences to return to the concert hall and a number of key staffing vacancies for part of the year led to a decrease in activity which had a significant impact on fundraising and earned income.

An operating loss on the year meant that the free reserves at the balance sheet date dropped and remained below policy level, and while this leaves the charity vulnerable to unexpected costs or other future outcomes, such as a failure to deliver forward budgets, the Trustees consider that continuing savings on operating costs, the ability to adapt activity to income and the appointment of two key members of staff give a reasonable expectation that the charitable company has adequate resources to continue in existence for the foreseeable future, for the following reasons:

During a large part of the year the charity was without a Marketing Manager and a Chief Executive Officer which placed enormous pressure on the remaining staff, in particular the Development Director who covered the marketing function as well as her own duties. This had a significant effect on fundraising activity. The appointment of an experienced Marketing Manager in January 2022 has allowed not only an increase in fundraising activity but also the comprehensive implementation of the results of a brand review which was undertaken during the year with the intention of improving the charity’s brand recognition. This includes the development of a new website with improved functionality which should positively impact upon and improve donor experience, as well as promoting the charity’s brand in a more impactful way. This appointment has freed the Development Director to concentrate on fundraising activities with a significant increase in the fundraising pipeline for future projects.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

CITY OF LONDON SINFONIA LIMITED

1 ACCOUNTING POLICIES continued

A wide-ranging recruitment process for a new CEO was undertaken in the second half of 2022 resulting in 26 applications from which the board, executive team and musician members unanimously chose Rowan Rutter, who takes up the post in April 2023. The Trustees are confident that they have found an individual who has the vision and skills to revitalise the orchestra’s profile, create new markets for its concert and participation work and to significantly increase its fundraising capacity with an emphasis on philanthropy.

A number of funders and the Arts Council have stringent Equality, Diversity and Inclusion (EDI) requirements for all applicants and this has hampered fundraising efforts to some extent. The charity has agreed and published an EDI policy which seeks to tackle perceived shortcomings in EDI within the organisation and the classical music sector as a whole. An action plan for strategic implementation of the policy has been prepared for the Board and the new CEO to drive organisational change forward. In the medium term the orchestra aims to meet these stringent funding requirements in full.

During 2021/22 the orchestra showed resilience and creativity, continuing to develop a performance and participation practice that is flexible and can adapt easily to the needs of promoters and artistic partners. This included the development of non-traditional concert venues and the ability to respond to the economic pressure upon engagers. It puts the orchestra in a good position to capitalise upon a reawakening market over the next few years and to programme concerts to attract new as well as traditional audiences.

Budgets have been prepared for financial years 2022/23 and 2023/24. These are flexible budgets which can adapt planned activity to meet the requirements of any future covid restrictions (and associated reduction in income) or allow for growth if fundraising targets are met or exceeded. As our Chairman’s Report states, we always budget our activity in line with a conservative estimate of income, and plan for the possibility to make changes in our programmes where the unexpected occurs.

The fundraising targets within the budget have been set in the confidence that they are realistic based on pledged giving, a strong pipeline of fundraising requests and the probability of them succeeding.

The Trustees have confidence in the management’s ability to deliver the agreed budgets: costs across all activities are rigorously controlled, and recent funding successes give confidence that the Development team can deliver their fundraising targets.

For these reasons, the Trustees are confident that the company will remain in operation for the foreseeable future, and therefore they have adopted the going concern basis in preparing the financial statements.

Income

Income from donations and grants is recognised when the charity is entitled to the funds, the receipt is probable and the amount can be measured reliably. For donations, this is usually on receipt. For grants, this is usually when a formal offer is made in writing, unless the grant contains terms and conditions outside of the charity's control which must be met before the charity is entitled to the funds. Where grants are received in response to a proposal including a budgeted timescale, such that the timescale for the expenditure is implicit in the grant agreement, the income is recognised in accordance with that timescale.

Income from charitable activities is recognised over the period to which the income relates. Fees and box office revenues are recognised when the associated event takes place. Income received in advance is accounted for as deferred income.

Income is stated net of VAT and trade discounts.

CITY OF LONDON SINFONIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1 ACCOUNTING POLICIES continued

Expenditure

Expenditure is recognised when a present legal or constructive obligation exists at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation, and the amount can be estimated reliably.

Expenditure has been classified under headings that aggregate all costs related to the category.

Staff costs are allocated on the basis of staff time.

Support costs, which are those costs relating to functions which assist the work of the charity but do not directly relate to its activities, have been allocated to the activities undertaken by the charity on the basis of direct expenditure on those activities.

Taxation

The charity is exempt from corporation tax on its income and gains to the extent that these are applied to its charitable objects. Orchestral Tax Relief available for qualifying projects is recognised in the year in which the projects take place.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for the particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Tangible fixed assets and depreciation

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

Fixtures, fittings and equipment Straight line basis over four years Musical instruments Straight line basis over ten years

Investments

Investments in subsidiary undertakings are stated at cost less provision for impairment.

Financial instruments

The charity only has financial instruments of a kind that qualify as basic financial instruments. Short term basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost.

Leasing

Rentals payable under operating leases are charged against income on a straight line basis over the lease term. The only operating lease relates to the charity's premises.

CITY OF LONDON SINFONIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1 INCOME FROM DONATIONS AND GRANTS

Grants, corporate membership and other donations Donations from individuals including Gift Aid Patrons	2022 £ 352,667 133,686 44,417 530,770	2021 £ 462,753 121,604 33,561
		617,918

In the prior period, £215,047 of the income from grants and donations was restricted.

2 INCOME FROM CHARITABLE ACTIVITIES

Fees and box office revenue	Concerts & staged events 2022 £ 467,481	Outreach projects 2022 £ 9,871	Total 2022 £ 477,352 477,352	Total 2021 £ 95,441
	467,481	9,871		95,441

3 EXPENDITURE ON RAISING FUNDS

EXPENDITURE ON RAISING FUNDS
Staff costs Note 8 Donor cultivation EXPENDITURE ON CHARITABLE ACTIVITIES Direct costs Note 5 Support costs Note 6	Concerts & staged events 2022 £ 631,410 160,553	Outreach projects 2022 £ 197,035 50,101	2022 £ 102,513 15,099 117,612 Total 2022 £ 828,445 210,654 1,039,099	2021 £ 106,768 5,188
				111,956
				Total 2021 £ 384,216 182,746
	791,963	247,136		566,962

4 EXPENDITURE ON CHARITABLE ACTIVITIES

In the prior period, £164,736 of the expenditure on charitable activities was from restricted funds.

CITY OF LONDON SINFONIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

5 DIRECT COSTS

Fees to: Players Soloists Conductors Tutors and composers Staff costs Note 8 Concert and rehearsal hall hire Instrument hire Music hire and purchase Advertising and marketing Production costs Programmes Other direct costs 6 SUPPORT COSTS Staff costs Note 8 Conductor's expenses Premises costs Other office costs Computer costs Insurance Travel and motor expenses Legal and professional costs Marketing, consultancy and photography Depreciation Bad debts Interest Auditors' remuneration Other fees paid to auditors: accountancy fees 7 NET (EXPENDITURE) / INCOME Net expenditure is stated after charging: Auditors' remuneration for audit services Auditors' remuneration for accountancy services Depreciation Rent paid under operating leases	2022 £ 450,253 10,329 6,700 27,975 217,971 24,837 1,310 38,719 11,685 8,639 700 29,187 828,305 2022 £ 48,561 4,200 36,778 31,198 10,728 9,697 4,286 415 23,976 6,949 6,290 426 4,800 22,350 210,654 4,800 22,350 6,949 32,760	2021 £ 111,051 500 - 21,468 221,735 9,881 - 2,190 11,232 ( 487) 5,700 946
		384,216
		2021 £ 54,759 4,200 39,853 27,217 9,087 9,688 1,980 230 4,351 6,881 - - 4,500 20,000
		182,746
		4,500 20,000 6,881 36,055

As permitted by s408 Companies Act 2006, the parent charity has not presented its own Statement of Financial Activities and related notes. The parent charity's net expenditure for the year was £68,879 (2021: net income £61,571).

CITY OF LONDON SINFONIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

8 STAFF COSTS

STAFF COSTS
Salaries Employer's National Insurance Employer's pension costs	2022 £ 330,526 30,473 8,046 369,045	2021 £ 342,237 33,108 7,917
		383,262

The average number of employee based on headcount, excluding directors, during the year was as follows:

Concerts and staged events Outreach projects Fundraising Administration and marketing	2022 No. 3 4 2 1 10	2021 No. 3 3 2 1
		9

During the year, the emoluments received by one member of staff fell in the band £60,001 - £70,000 (2021: one member of staff in the band £70,001 - £80,000).

9 TAXATION

Orchestra Tax relief - payable to subsidiary company

2022	2021
£	£
79,710	27,130

CITY OF LONDON SINFONIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

10 TANGIBLE FIXED ASSETS

Group and Charity Cost At 1 April 2021 Additions At 31 March 2022 Depreciation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021	£ 10,550 - Musical instruments	£ 45,766 595 46,361 34,582 6,222 40,804 5,557 11,184 Fixtures, fittings & equipment	Total £ 56,316 595
	10,550		56,911
	5,464 727		40,046 6,949
	6,191		46,995
	4,359		9,916
	5,086		16,270

11 INVESTMENTS AND SUBSIDIARY COMPANY

The Charity owns 100% of the ordinary share capital of £1 of CLS Productions Limited a company incorporated in England and Wales (No 09084330) with the same registered office as the charity. The company's only activity is that of a production company. The company's results for the year and net assets at the end of the year were:

Turnover Expenditure Tax recoverable Profit for the year Capital and reserves at end of the year	2022 £ 282,379 ( 362,089) 79,710 - 1	2021 £ 126,429 ( 153,559) 27,130
		-
		1

CITY OF LONDON SINFONIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

12 DEBTORS

2022 2021 £ £ Trade debtors 27,656 9,379 Amounts owed by group undertakings - - Tax recoverable 106,840 27,130 Other debtors 7,500 19,413 Prepayments and accrued income 78,785 99,726 220,781 155,648 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2022 2021 £ £ Trade creditors 55,866 24,966 Tax and social security 30,584 24,902 Accruals and other creditors 61,326 19,335 Deferred income 78,782 20,483 226,558 89,686 Deferred income comprises: Income deferred from the previous year Released to the statement of financial activities Arising during the current year: Grants and donations required to be spent in future periods Group Group	2022 2021 £ £ Trade debtors 27,656 9,379 Amounts owed by group undertakings - - Tax recoverable 106,840 27,130 Other debtors 7,500 19,413 Prepayments and accrued income 78,785 99,726 220,781 155,648 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2022 2021 £ £ Trade creditors 55,866 24,966 Tax and social security 30,584 24,902 Accruals and other creditors 61,326 19,335 Deferred income 78,782 20,483 226,558 89,686 Deferred income comprises: Income deferred from the previous year Released to the statement of financial activities Arising during the current year: Grants and donations required to be spent in future periods Group Group	2022 2021 £ £ 27,656 9,379 106,840 27,130 - - 7,500 19,413 78,785 99,726 220,781 155,648 2022 2021 £ £ 55,866 24,966 30,584 24,902 61,328 19,336 78,782 20,483 226,560 89,687 20,483 35,327 ( 20,483) ( 35,327) 78,782 20,483 78,782 20,483 Charity Charity
226,558	89,686	89,687
		35,327 ( 35,327) 20,483
		20,483

13 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

CITY OF LONDON SINFONIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

14 MOVEMENT IN FUNDS - 2022

Income £ 569,415 -	£ ( 591,793) - Expenditure	£ 6,224 1,875 At 31 March 2022
569,415 282,379	( 591,793) ( 362,089)	8,099 -
851,794	( 953,882)	8,099
79,710 2,868 70,000 - 3,750	( 90,876) ( 5,203) ( 78,000) ( 25,000) ( 3,750)	10,150 2,868 - - -
156,328	( 202,829)	13,018
1,008,122	( 1,156,711)	21,117

725,743	( 794,622)	21,117

Designated funds:

KidsSpace

The trustees have designated funds to a project entitled KidsSpace that is going to be a dedicated section of the CLS website, linked to the orchestras activities for young children aged 3-7 years, providing interactive game-based musical activities to be used by children in education or home environments, as an added value element to our existing projects in this area.

Restricted funds:

The restricted funds arise from grants and donations to fund particular projects or items of expenditure, and unused income is carried forward to cover future expenditure on those areas. Details of restricted funds active during the year are as follows:

Participation projects

This fund comprises grants and donations received to support the charity's year-round programme dedicated to making music in schools, hospitals and communities and also grants and donations received to support the charity's work in hospitals and care homes to allow music to aid in the healing process and providing an outlet for those who need it most.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

CITY OF LONDON SINFONIA LIMITED

15 MOVEMENT IN FUNDS continued

Diary of a Young Naturalist

This fund comprises grants from the Leche Trust, PRS and ACE toward the commissioned dramatic song cycle Diary of a Young Naturalist as part of the CLS 2021 50th Anniversary season.

Artist support & training

This fund comprises funding received to support the performance of emerging artists in concerts and funding for staff training.

RPS Audience Fund

This fund comprises a grant received from the Royal Philharmonic Society to support the CLS' audience development programme.

Website

This fund comprises donations from ACE specifically for website development.

MOVEMENT IN FUNDS - 2021

Income £ 371,883 -	£ ( 360,623) - Expenditure	2021 £ 28,602 1,875 At 31 March
371,883 126,429	( 360,623) ( 153,559)	30,477 -
498,312	( 514,182)	30,477
84,558 37,868 8,000 21,332 50,000 13,289	( 82,342) ( 22,773) - ( 21,332) ( 25,000) ( 13,289)	21,316 5,203 8,000 - 25,000 -
215,047	( 164,736)	59,519
713,359	( 678,918)	89,996

586,930	( 525,359)	89,996

I'm a Rock n Roll Star

This fund comprises donations from ACE specifically for the CLS 'I'm a Rock n Roll Star' series originally scheduled for May 2020. Due to the cancellation of this series of concerts during Covid lockdowns, permission was granted by ACE to use the funding for the Restore and Revive concerts in 2020.

Staff posts

This fund relates to grant funding to cover staff costs.

CITY OF LONDON SINFONIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

15 ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS - 2022

£ Fund balances at 31 March 2022 are represented by: Tangible fixed assets 9,916 Net current assets ( 1,817) 8,099 ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS - 2021 £ Fund balances at 31 March 2021 are represented by: Tangible fixed assets 16,270 Net current assets 14,207 30,477 Unrestricted funds Unrestricted funds	£ 9,916 ( 1,817) Unrestricted funds	Restricted funds £ - 13,018 13,018 Restricted funds £ - 59,519 59,519	£ 9,916 11,201 Total funds
	8,099		21,117
			£ 16,270 73,726 Total funds
	30,477		89,996

16 FINANCIAL COMMITMENTS

At 31 March 2022 the charity was committed to future minimum lease payments under non-cancellable operating leases as follows:

leases as follows:
Land and buildings Due within one year In two to five years	2022 £ 25,000 10,479 35,479	2021 £ 25,000 35,479
		60,479

17 RELATED PARTY TRANSACTIONS

The following are considered to be the charity's key management personnel: The Board of Trustees

Chief Executive Chief Operating Officer

The total amount of employee benefits received by key management personnel during the year, including Employer's National Insurance and pension, was £116,290 (2021: £140,855).

There were no trustees' remuneration, other benefits nor reimbursed expenses paid during the current or prior period.

In aggregate, trustee donations were £147,560 (2021: £122,000) including gift aid.

CITY OF LONDON SINFONIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

18 STATUS

City of London Sinfonia Limited is a charitable company limited by guarantee incorporated in England and Wales. In the event of the company being wound up, the liability in respect of the guarantee is limited to £5 per member of the charity. The address of the registered office is 1st Floor Radisson Court, 219 Long Lane, London, England, SE1 4PB.