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2021-12-31-accounts

REGISTERED COMPANY NUMBER: 00408404 (England and Wales) REGISTERED CHARITY NUMBER: 313663

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 FOR BENSLOW MUSIC TRUST

(A COMPANY LIMITED BY GUARANTEE)

BENSLOW MUSIC TRUST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Page
Report of the Trustees 1 to 10
Report of the Independent Auditors 11 to 14
Consolidated Statement of Financial Activities 15
Statement of Financial Activities 16
Consolidated Statement of Financial Position 17
Statement of Financial Position 18 to 19
Consolidated Statement of Cash Flows 20
Notes to the Consolidated Statement of Cash Flows 21
Statement of Cash Flows 22
Notes to the Statement of Cash Flows 23
Notes to the Financial Statements 24 to 41

BENSLOW MUSIC TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2021. The trustees have adopted 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).

Benslow Music Trust

Founded 1929 as the first Rural Music School and in 1946 Incorporated as The Rural Music Schools Association (RMSA), re-Incorporated in 1986 as Benslow Music Trust (BMT).

Trustees' Annual Report For the year ended 31 December 2021

The Trustees, who are also directors for the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2021. The trustees have adopted 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objects of the Trust as established in 1986 are 'to promote music education for the public benefit through the study and practice of music, especially in its social and co-operative forms, amongst students of all ages'.

In 1952 Little Benslow Hills, the substantial Victorian house (now called simply Benslow Music) which forms the hub of the organisation, was bequeathed to RMSA by Esther Seebohm 'to be used in perpetuity for the support of musicmaking'.

The Trust achieves its objectives principally through an extensive programme of short residential courses led by prominent musician/tutors and a wide-ranging series of concerts, supported by opening its facilities to local and national organisations from toddlers' groups and graded examination bodies to choral societies and other music-making groups, for events of all sorts, supported by trading activity such as providing Bed and Breakfast accommodation.

Membership of the Trust, open to all by subscription, enables support of the Trust and gives Members the right and duty to elect Trustees and vote at the AGM alongside inter alia advance booking of courses, free use of the library and the opportunity to book practice facilities. Members act as ambassadors for the Trust's activities and many generously donate over and above their annual subscription, for which the Trust is most grateful.

When the Trust became incorporated it took on responsibility as sole corporate trustee for the Benslow Music Instrument Loan Scheme (Registered Charity No: 313755), first established in 1932 to provide quality instruments to talented young musicians and subsequently operating from the Rural Music Schools offices.

Benslow Music Enterprises Limited (Registered Company Number 10967344) was established in 2017 to manage the Trust's non-music trading activity.

The Trustees are aware of their duty to have regard to Charity Commission guidance on public benefit and have no doubt that through the efforts of members and staff in reaching the large number of visitors to the site during a normal year their work is indeed conducted for the benefit of the public. The year to 31 December 2021 was of course dominated by the effects of the Covid-19 pandemic which had a severely limiting effect on the Trust's activities.

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BENSLOW MUSIC TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

OBJECTIVES AND ACTIVITIES

Income and Expenditure

The result for the year 2021 was an overall deficit of £51k on the Trust's Unrestricted Funds. Within this figure there was an operating deficit of £227k as a result of the pandemic, together with the cost of replacing aging boilers. Where possible during lockdown offsetting cost savings were made by curtailing expenditure to only essential items and contractual commitments, and the extensive placement of staff on furlough under the Coronavirus Job Retention Scheme, which Benslow ceased using in July 2021 as full operation was resumed. Contractual commitments included paying musicians' cancellation costs, course refunds, and long term equipment leases, essential property maintenance and other annual costs e.g. insurance. Throughout the 2021 lockdown Benslow Music retained its planning capacity and sustained essential crisis management, as well as continuing to provide access to music online through innovative courses and live stream concerts.

Donations and legacies for the year totalled £126k, including £36k to the Keep Music at Benslow Alive fundraising drive. The donations also included £5k of specific gifts towards instruments. The Keep Music at Benslow Alive fundraising drive enabled BMT to underwrite the unavoidable operating deficits in 2020 and 2021, and the Trust is deeply grateful to all donors for their tremendous generosity and support during this time.

The Trading Company, Benslow Music Enterprises Limited (BME), had limited opportunity for income generation as a result of the lockdown in the early months of 2021, and general reductions in business activity. BME trading resulted in a net surplus of £7k for the year (£5k in 2020), which was donated to BMT.

The pandemic was a specific event which had a significant effect on the Trust's finances, and without the generous donations through the Keep Music at Benslow Alive fundraising drive, and others including those who donated their course fees or took out Life Memberships, the Trust would have experienced serious and challenging financial difficulties.

The monthly budget process, including cash flow reports, continued to be used to inform managers and Trustees of the latest financial position, and additional processes commenced in 2020 to support decision making through Crisis Steering Group continued in 2021. The budget process was adapted to manage shorter and longer term planning horizons, cash flow and risks arising from the crisis. For 2022 the Trust has returned to a full year budget cycle. The Trust's Council maintains a strong financial policy and robust financial controls to comply with latest guidance from the Charity Commission and current best practice in financial management.

Fixed Assets and Investments

At the beginning of the year the Trust held investments of £442,097 principally managed by Investec Wealth and Investment Limited. The investments are divided into two funds, one aimed at maximisation of growth, the other at income. During the year investment income of £9k was achieved, which was lower than in previous years, as companies continued to suspend or reduce the payment of dividends during the year due to the pandemic. Investment income is retained by Investec and reinvested. As reported in the Financial Statements, the Trust's investment values increased during the year. At the end of the year the book value of investments held was £487,992. Purchases during the year were £103,868 and disposals £57,052.

The Trust's policy in respect of ethical, social and environmental issues is to reserve the right to exclude from its investments companies that carry out activities contrary to its aims or from holding particular investments which damage the Trust's reputation. The Trustees keep this policy under annual review.

Market Value of Land and Buildings

The charitable provisions under which ownership of the freehold of the property at Little Benslow Hills was transferred to the Trust in 1952 restrict the use to which the property may be put. Therefore the Trustees feel unable to provide a meaningful market value for the campus. Depreciation of accumulated capital expenditure on the property of £74,880 was made during the year, on the Restricted Funds of the Trust.

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BENSLOW MUSIC TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

OBJECTIVES AND ACTIVITIES

At the start of 2021 the UK was in lockdown so there was no residential activity at our campus until May. Throughout this period staff worked from home where possible, though there was a constant, if slender, presence on site, with much work done on scheduling and re-scheduling courses, planning and re-planning, preparing for re-opening and, importantly, maintaining online courses and the livestreaming of concerts. There were some 24 concerts during the January-April period, maintaining both an evening series and that of the independent supporters' charity the Friends of BMT held on the second Monday afternoon of the month. This online activity, initiated by Dr Christopher Roberts early in the pandemic, proved popular, enabled the music-making of Members and other participants, kept Benslow Music's name alive and, significantly, provided performance opportunities for some of the many fine musicians the Trust is accustomed to work with, to the enjoyment and satisfaction of listeners.

Benslow Music's affairs were capably managed by staff during this period, in frequent consultation with a Crisis Steering Group of Trustees and Senior Managers. Close contact was maintained with management colleagues in other institutions facing similar issues including Knuston Hall, Halsway Manor and Jackdaws (so in part reviving ARCA, the Adult Residential Colleges Association (later leisurecourses.net) which disbanded in 2013). As a corporate member, Benslow Music also took support from and shared pandemic experiences amongst other topics in a series of Zoom conferences with other corporate members of Making Music.

During January application for funds was made via Arts Council England to the Government's Cultural Recovery Fund round 2, without success. In February a Hitchin Arts and Culture Group was established, again as a mutual help group with the intention of sharing common experiences and initiatives, with involvement from North Herts District Councillors and officers whose involvement continues. Benslow Music is regarded as a key member of this group. In further local involvement the Trust also hosted a breakfast for local business representatives for Hitchin Bid during December.

The year saw Benslow Music promote a large number of concerts, mostly livestreamed, performing to live audience as soon as that was allowed. People have been cautious about returning but audience numbers picked up steadily during the year. Performances included a delightful summer evening performance in the garden of Purcell's Dido and Aeneas given by Eboracum Baroque, the Nona Blay patio outside the Dining Room proving an excellent stage area. Many such concerts were not directly associated with courses. Courses themselves, many of which had been postponed and rescheduled several times, resumed just as soon as pandemic restrictions allowed, albeit with strict hygiene protocols in place (always following, and exceeding, Government guidelines). Tutors and participants proved overjoyed to return and to resume their music-making at Benslow. By dint of running courses back-to-back, as tutor availability allowed, income for the fourth quarter of the year broke records, though this was unable on its own to cover the year's overall deficit.

The third Benslow Music Young Composers Competition, judged by soprano Sarah Leonard and pianist Stephen Gutman with BM President Judith Weir, was held in April and won by Christopher Churcher (age 17, from King Edward's School, Edgbaston) in the 18 years and under category and Tan Tiag Yi (age 24, University of Oxford) in the 19-25 years category. The winning pieces were performed at a concert at Benslow Music in August. The President remarked: "I don't know if it's the result of spending a boring year at home, but the songs selected … struck me as being an exceptionally distinguished set". Other external engagement saw Benslow Music take a stand at the London International Early Music Exhibition in November at Blackheath.

Achievements and performance

During 2021, refurbishment of external paintwork to both the main house and the Waldeck block was concluded, we trust in so doing making the buildings weather-proof for at least a few more years. Internally, the stair carpet in the main house had deteriorated badly and has been replaced. And in March the decision was taken to replace the two remaining heating boilers in the main house. These had served Benslow Music usefully for several decades but had become increasingly and seriously unreliable, as was the boiler in the Lavender Tower serving the Waldeck/Palmer Hall building (installed when that block was constructed in 2000). Work was undertaken efficiently by DG Maintenance and to date all is working well.

The Trust was greatly saddened to learn of the death of Vice President Stephen Wilkinson in August at the age of 102. His was a major contribution to the life of the Trust, maintained until very recently. The Trust was represented at his funeral.

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BENSLOW MUSIC TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

OBJECTIVES AND ACTIVITIES

During November, as part of a review of the Trust's stewardship of Members, a questionnaire was distributed, eliciting many constructive suggestions.

Staff

Chief Executive: Peter Hewitt

Head of Music: Dr Christopher Roberts (until November), Dr Peter Collyer (from November) with Laura Thompson (Music Administrator), Carline Bushen (Front Desk Administrator), Joanne Flavell (Event and Sales Co-ordinator) Head of Finance: Steve Saint with Karen Luxon (Finance Officer)

Director of Operations: Tim Sharp with Alison Goodwin (Food & Beverage Supervisor), Tes Knight (Lead Housekeeper), Ken Harriott (Steward), Sarah Benham, Justyna Bartosik, Lesley Goodwin, Susan Davis, Dominic D'Amico (House Staff), Michelle Higgins, Zoe Tadhunter, Tara Fraser, Chris Speed, Sue Blackwood (Chefs), Gary Day (Kitchen Assistant), casuals

Head of BMILS: Alison Palmer (until May), Etta Dainty (from May) with Annette Hoar (Administrative Assistant), Clare Knapman (Finance Assistant), Marco Matathia (Luthier) Head of Marketing: Emma Menniss (from July)

May 2021 saw interviews for the post of Head of Benslow Music Instrument Loan Scheme and the appointment of Etta Dainty, late of Askonas Holt, Alison Palmer having announced her retirement as General Manager after 14 years excellent service during which the Scheme expanded considerably. Under the capable Chairmanship of Tony Aston, Alison oversaw the planning and construction of the splendid new (Aston) building for the Scheme and the appointment of an in-house luthier, all the while dealing with young clients and their parents (and teachers) with great skill, for which all connected with the Scheme are profoundly grateful. We wish her a fruitful retirement. Etta has integrated herself firmly in post, establishing strong new relationships and the Trust looks forward to further positive development of the Scheme under her leadership.

At the same time, looking to the future and following a most generous donation of funds 'for development' to both BMT and BMILS, Trustees took the decision to create two new posts, Heads of Marketing and Fundraising & Development, both posts to address the strategic needs of both charities. The Trust was fortunate in securing the services of Emma Menniss on three days a week (partly working from home) to the first post and also those of Sacha Glasgow-Smith on a consultancy basis for Fundraising and Development.

In the autumn Head of Music Dr Christopher Roberts was appointed to the role of Operations Manager at the National Centre for Early Music in York and so, sadly, left Benslow Music in November. Chris had joined the Trust first in November 2016 as Music Administrator and soon after proved the outstanding candidate to take over when Fane Henderson resigned as Head of Music in 2017. Since then Chris more than proved his worth, inter alia expanding and diversifying the course and concert provision, attracting new customers to Benslow Music, establishing protocols for guests, course participants and tutors, developing music and marketing strategies, managing social media and the website, taking on the brunt of testing the Benslow Management System (a replacement database project), driving the appointment of an Event and Sales Coordinator and enabling that of the new Head of Marketing and Fundraising & Development Coordinator roles (so enabling re-focus on Music for his role). Also to him the Trust owes the initiative in establishing online courses and the livestreaming of concerts at the start of the Covid pandemic, as mentioned above. He has been an outstanding Head of Music and the Trust wishes him well in his new role, in his home county and specialist area of musical activity, and great good fortune in the next step of what will surely be a successful onward career.

The Trust was fortunate indeed to appoint in Chris's place Dr Peter Collyer who proved able to start work on site almost immediately. Peter has outstanding credentials as a performing musician, academic and administrator inter alia at Southampton and Oxford universities and at Morley College. In the few months he has been with the Trust Peter has established himself firmly in post, bringing a clear-headed approach reflecting his valuable experience and creating good rapport with his team and colleagues, with tutors and participants too.

Trustees are most grateful on behalf of all Members to the entire staff team for their part in enabling the operation, and survival, of BM during this challenging period.

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BENSLOW MUSIC TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

OBJECTIVES AND ACTIVITIES

Plans for the future

The BMT Strategic Plan 2022-24 envisages a period of post-pandemic consolidation, particularly to reflect significant change in senior staff positions, a period of planning during 2023 and the implementation of plans during the next year and leading towards the Trust's centenary in 2029.

A priority is the restoration of a secure financial position, also further replenishment of reserves to equate more nearly to a 6-month turnover target. As part of this there will be application to grant-giving bodies. The Trust will review the range of courses and pattern of concert-giving, stewardship of members and participants, communications and marketing strategies, staff structures, site development, online provision, profile both locally and nationally, and will set in place refurbishment of the Peter Morrison Hall and other interiors, addressing in all of this matters of diversity and access.

Governance and administration

As noted in the header to the Report, the Trust is a Registered Charity, and Registered Company, and was established as a membership organisation. Members elect a Council of Trustees at the Annual General Meeting, no more than 14 and no fewer than 5 (with the internal intention of never reaching less than 7) and during 2021 numbering 11. Trustees elect Chairman and Vice Chairmen from their number (in 2021).

Donations

The Trust is profoundly grateful for donations from all sources. In 2021 the Keep Music at Benslow Alive campaign remained open due to the lockdown in the early months of the year, and donations of £36k were made. In addition, there were general donations of £30k, legacy donations of £55k, and a donation towards instruments of £5k. The Trust extends its heartfelt thanks to all donors who have supported it in 2021 for their generosity, helping to sustain it during the pandemic and providing resources for security and future investment. Gifts targeted towards specific projects have been most welcome, and not least scores, sets of parts and books for the library, and instruments directed to the Instrument Loan Scheme.

FINANCIAL REVIEW

Reserves Policy

The Contingency Fund has been maintained at £190,000 which is covered by the Trust's investment portfolio. The purpose of the contingency fund is to provide for emergency resources in the event of unforeseen expenditure and to allow capital projects to commence whilst awaiting other funding. At the end of 2021, the Trust held designated reserves in respect of the BMT Development Fund (£86k), Garden Fund (£5k), and an Instrument Fund (£5k). Use of these funds will be planned in 2022. £14k of the Development Fund was used in new initiatives in fundraising and marketing in 2021, the previous IT Fund balance was used in conjunction with the new database project.

The general reserve reflects the accumulated surplus from the general activities of Benslow Music Trust and is held to ensure long term security for the Trust in the event of future deficits, also to enable resources to be built up to invest in Benslow Music's premises, plant and equipment. It holds the unused portion of the Keep Music Alive at Benslow donations. The reserves policy of Benslow Council is to build towards overall reserves equivalent to six months of operating expenditure as a minimum secure level.

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BENSLOW MUSIC TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

As noted in the header to the Report, the Trust is a Registered Charity, and Registered Company, and was established as a membership organisation. Members elect a Council of Trustees at the Annual General Meeting, no more than 14 and no fewer than 5 (with the internal intention of never reaching less than 7) and during 2021 numbering 11. Trustees elect Chairman and Vice Chairmen from their number (in 2021 respectively, Peter Neville as Chairman, Michael Taylor and Tim Gillott as Vice Chairs) and appoint the Hon Treasurer (Bhagwant Singh) and Hon Secretary (Mark Bowen). Details of those who have served as members of the Trustee body throughout the period and to the date of this report are provided elsewhere in this report.

Trustees appoint senior staff namely a Chief Executive, Head of Music, Head of Finance, Director of Operations, Head of Marketing who, with the Head of BMILS, are in turn responsible for the Trust's day-to-day operation including course, concerts and events, hospitality (catering and housekeeping) and communications. The Chief Executive and Head of Finance provide trustees with reports at every meeting of Council, their colleagues reporting at least twice a year. Major or unusual expenditure is also authorised by Trustees who also retain responsibility for setting overall budgets, staff remuneration and recruitment.

Newly-elected Trustees are advised about the responsibilities of their role and are supported by more experienced colleagues. Trustees receive guidelines relevant to their role including information from the Charity Commission, auditors, solicitors and brokers as it is available. In addition, Trustees attend induction and training sessions and are required to sign the Trustees' Code of Conduct and a Declaration of Interests form.

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BENSLOW MUSIC TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment and appointment of new trustees

The remuneration of all members of staff is reviewed annually by the Trustees following report from the Remuneration Committee. Staff are appraised annually by Line Managers; their recommendations are considered alongside details of movement in standard indices prepared by the Office of National Statistics including CPI, RPI, National Living Wage and average earnings.

This report has been prepared in accordance with relevant statutory requirements, the Trust's Memorandum and Articles and the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). It has been agreed by the Trustees and is signed on their behalf by:

Tim Gillott, Michael Taylor Vice-Chairmen May 2022

Members

We welcomed 93 new Members in 2021, 78 Individual, 10 Family, 1 Youth and 4 Life. In addition the Trust is grateful to the 21 Individuals who converted to Life Membership.

In Memoriam

Sadly, each year we are notified of Members who have passed away either within the current year or earlier. We report the deaths of the following Members as notified to us since the last report: Ron Farquhar, Lynn Godfrey, Rob Heeks, Margaret Smith, Rita Weidmann, Liz White, John Whitehall

Thank you

The Trust is most grateful to:

Trustees 2021

At the Trust's AGM in 2021 held on 26 June John Witchell, to whom great gratitude for all he had done for the Trust was given, retired as a Trustee, Norma King, Tim Gillott and Peter Neville retired by rotation and were re-elected, and members elected Andrew Blankfield, Katy Hamilton, Bhagwant Singh and Susan Sturrock as new Trustees.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

00408404 (England and Wales)

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BENSLOW MUSIC TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

Registered Charity number 313663

Registered office Benslow Music Benslow Lane Hitchin Hertfordshire SG4 9RB

Trustees President Judith Weir CBE

Vice-Presidents

Steven Isserlis CBE Philip Meaden John Rutter CBE Peter Stark Melvyn Tan Stephen Wilkinson MBE (until August 2021)

Board of Trustees ("Council")

Peter Neville - Chairman Michael Taylor - Vice-Chairman Tim Gillott - Vice-Chairman (from June 2021) John Witchell - Vice-Chairman (until June 2021) and Interim Chair of Governors Benslow Musical Instrument Loan Scheme Bhagwant Singh - Hon Treasurer Andy Baruch Colin Bates Andrew Blankfield (co-opted February 2021 and elected June 2021) Anne Conchie Katy Hamilton (co-opted November 2020 and elected June 2021) Norma King Susan Sturrock (co-opted November 2020 and elected June 2021)

Hon Secretary to the Board – Mark Bowen

In accordance with the Articles of Association (which require on third of Council to retire each year) the following Trustees retire at the forthcoming 2022 Annual General Meeting and being eligible, all offer themselves for re-elction:

Andy Baruch, Colin Bates, Michael Taylor

Anne Conchie is retiring at the forthcoming Annual General Meeting and is not standing for re-election.

Auditors

Bradshaw Johnson Chartered Accountants Statutory Auditor Croft Chambers 11 Bancroft Hitchin Hertfordshire SG5 1JQ

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BENSLOW MUSIC TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

REFERENCE AND ADMINISTRATIVE DETAILS Bankers

Barclays Bank plc 5/6 High Street Hitchin Hertfordshire SG5 1BJ

Bankers

CCLA Investment Management Ltd Senator House 85 Queen Victoria Street London EC4V 4ET

Financial Advisers

Investec Wealth & Investment Ltd 2 Gresham Street London EC2V 7QP

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Benslow Music Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the 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 those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.

In so far as the trustees are aware:

AUDITORS

The auditors, Bradshaw Johnson, will be proposed for re-appointment at the forthcoming Annual General Meeting.

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BENSLOW MUSIC TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 7[th] May 2022 and signed on the board’s behalf by:

……………………………………………

T Gillott - Trustee

…………………………………………… M Taylor - Trustee

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF BENSLOW MUSIC TRUST

Opinion

We have audited the financial statements of Benslow Music Trust (the 'charitable parent company') and its subsidiary (the ‘group’) for the year ended 31 December 2021 which comprise the Group and Charitable Parent Company Statement of Financial Activities, the Group and Charitable Parent Company Statement of Financial Position, the Group and Charitable Parent Company 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the group 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF BENSLOW MUSIC TRUST

Responsibilities of trustees

As explained more fully in the Statement of Trustees Responsibilities, 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 group’s and the charitable parent 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 group or the charitable parent company or to cease operations, or have no realistic alternative but to do so.

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF BENSLOW MUSIC TRUST

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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 considered the nature of the Charitable Company's industry and its control environment, and reviewed the Charitable Company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the Charitable Company operates in, and identified the key laws and regulations that:

We discussed among the audit engagement team including relevant internal specialists such as tax specialists regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following: - reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

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 Report of the Independent Auditors.

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF BENSLOW MUSIC TRUST

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and regulations made under Section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Bradshaw Johnson Chartered Accountants Statutory Auditor Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Croft Chambers 11 Bancroft Hitchin Hertfordshire SG5 1JQ Date: 13 May 2022

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BENSLOW MUSIC TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
funds
Notes
£
INCOME AND
ENDOWMENTS FROM
Donations and legacies
3
162,141
Charitable activities
6
Music courses
658,875
Music lettings
40,810
Concerts, including grants
20,896
Income from Benslow Music
Enterprises Limited
Other trading activities
16
4
33,691
27,643
Investment income
5
9,055
Other income
7
103,524
Total
1,056,635
EXPENDITURE ON
Raising funds
8
57,238
Charitable activities
9
Operation of courses and
musical activities
1,091,908
Total
1,149,146
Net gains/(losses) on
investments
41,411
NET
INCOME/(EXPENDITURE)
BEFORE TAXATION
(51,100)
Tax on subsidiary
-
NET
INCOME/(EXPENDITURE)
(51,100)
RECONCILIATION OF
FUNDS
Total funds brought forward
916,907
TOTAL FUNDS CARRIED
FORWARD
865,807		 Restricted
funds
Endowment
funds
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
74,953
-
74,953
-
-
-
(74,953)
-
-
-
(74,953)
-
705,920
-
630,967
-		 31.12.21
Total
Funds
£
162,141
658,875
40,810
20,896
33,691
27,643
9,055
103,524
1,056,635
57,238
1,166,861
1,224,099
41,411
(126,053)
-
(126,053)
1,622,827
1,496,774		 31.12.20
Total
funds
£
708,164
488,648
29,657
17,966
23,652
15,034
8,488
25,523
1,317,042
41,896
905,049
946,945
26,414
396,511
-
396,511
1,226,316
1,622,827

The notes from part of these financial statements

Page 15

BENSLOW MUSIC TRUST

CHARITY STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
funds
Notes
£
INCOME AND
ENDOWMENTS FROM
Donations and legacies
3
168,953
Charitable activities
6
Music courses
658,875
Music lettings
40,810
Concerts, including grants
20,896
Other trading activities
4
27,643
Investment income
5
9,055
Other income
7
121,103
Total
1,047,335
EXPENDITURE ON
Raising funds
8
9,965
Charitable activities
9
Operation of courses and
musical activities
1,129,881
Total
1,129,881
Net gains/(losses) on
investments
41,411
NET
INCOME/(EXPENDITURE)
(51,100)
RECONCILIATION OF
FUNDS
Total funds brought forward
916,903
TOTAL FUNDS CARRIED
FORWARD
865,803		 Restricted
funds
Endowment
funds
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
74,953
-
74,953
-
-
-
(74,953)
-
705,920
-
630,967
-		 31.12.21
Total
funds
£
168,953
658,875
40,810
20,896
27,643
9,055
121,103
1,047,335
9,965
1,204,834
1,214,799
41,411
(126,053)
1,622,823
1,496,770		 31.12.20
Total
funds
£
713,444
488,648
29,657
17,966
15,034
8,488
35,842
1,309,079
7,520
931,462
938,982
26,414
396,511
1,226,312
1,622,823

The notes form part of these financial statements

Page 16

BENSLOW MUSIC TRUST (REGISTERED NUMBER: 00408404)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2021

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
15
27,300
Investments
16
487,991
515,291
CURRENT ASSETS
Stocks
17
4,711
Debtors
18
62,252
Cash at bank
574,677
641,640
CREDITORS
Amounts falling due within one
year
19
(291,124)
NET CURRENT ASSETS
350,516
TOTAL ASSETS LESS
CURRENT LIABILITIES
865,807
NET ASSETS
865,807
FUNDS
21
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
funds
Endowment
funds
£
£
593,531
-
-
-
593,531
-
-
-
-
-
37,436
-
37,436
-
-
-
37,436
-
630,967
-
630,967
-		 31.12.21
Total
funds
£
620,831
487,991
1,108,822
4,711
62,252
612,113
679,076
(291,124)
387,952
1,496,774
1,496,774
865,807
630,967
1,496,774		 31.12.20
Total
funds
£
700,568
442,097
1,142,665
4,893
38,243
689,606
732,742
(252,580)
480,162
1,622,827
1,622,827
916,907
705,920
1,622,827

The notes form part of these financial statements

Page 17

BENSLOW MUSIC TRUST (REGISTERED NUMBER: 00408404)

CHARITY STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2021

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
15
27,300
Investments
16
487,992
515,292
CURRENT ASSETS
Stocks
17
3,330
Debtors
18
87,713
Cash at bank
553,477
644,520
CREDITORS
Amounts falling due within one
year
19
(294,009)
NET CURRENT ASSETS
350,511
TOTAL ASSETS LESS
CURRENT LIABILITIES
865,803
NET ASSETS
865,803
FUNDS
21
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
funds
Endowment
funds
£
£
593,531
-
-
-
593,531
-
-
-
-
-
37,436
-
37,436
-
-
-
37,436
-
630,967
-
630,967
-		 31.12.21
Total
funds
£
620,831
487,992
1,108,823
3,330
87,713
590,913
681,956
(294,009)
387,947
1,496,770
1,496,770
865,803
630,967
1,496,770		 31.12.20
Total
funds
£
700,568
442,098
1,142,666
3,330
63,845
677,137
744,312
(264,155)
480,157
1,622,823
1,622,823
916,903
705,920
1,622,823

The notes form part of these financial statements

continued...

Page 18

BENSLOW MUSIC TRUST (REGISTERED NUMBER: 00408404)

STATEMENT OF FINANCIAL POSITION - CONTINUED AT 31 DECEMBER 2021

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2021.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for

These financial statements have been audited under the requirements of Section 144 of the Charities Act 2011.

The financial statements were approved by the Board of Trustees on 7 May 2022 and were signed on its behalf by:

…………………………………………… T Gillott - Trustee

……………………………………………

M Taylor - Trustee

The notes form part of these financial statements

Page 19

BENSLOW MUSIC TRUST

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities:
Cash generated from operations
1
Net cash provided by (used in) operating
activities
Cash flows from investing activities:
Purchase of tangible fixed assets
Purchase of fixed asset investments
Sale of fixed asset investments
Interest received
Dividends received
Net cash provided by (used in) investing
activities
Cash flows from financing activities:
Proceeds from issue of shares
Net cash provided (used in) financing
activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period		 31.12.21
£
(78,130)
(78,130)
(3,935)
(103,867)
99,384
201
8,854
637
-
-
(77,493)
689,606
612,113		 31.12.20
£
423,902
423,902
(2,313)
(176,990)
172,712
445
8,043
1,897
-
-
425,799
263,807
689,606

The notes form part of these financial statements

Page 20

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
31.12.21 31.12.20
£ £
Net income/(expenditure) for the reporting period (as per the statement
of financial activities) (126,053) 396,511
Adjustments for:
Depreciation charges 83,672 85,328
Losses/(gain) on investments (41,411) (26,414)
Interest received (201) (445)
Dividends received (8,854) (8,043)
Decrease in stocks 182 479
Increase in debtors (24,009) (13,232)
Increase in creditors 38,544 (10,282)
Net cash provided by (used in) operating activities (78,130) 423,902

Page 21

BENSLOW MUSIC TRUST

CHARITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities:
Cash generated from operations
1
Net cash provided by (used in) operating
activities
Cash flows from investing activities:
Purchase of tangible fixed assets
Purchase of fixed asset investments
Sale of fixed asset investments
Interest received
Dividends received
Net cash provided by (used in) investing
activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period		 31.12.21
£
(86,861)
(86,861)
(3,935)
(103,867)
99,384
201
8,854
637
(86,224)
677,137
590,913		 31.12.20
£
422,133
422,133
(2,313)
(176,990)
172,712
445
8,043
1,897
424,030
253,107
677,137

The notes form part of these financial statements

Page 22

BENSLOW MUSIC TRUST

NOTES TO THE CHARITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
31.12.21 31.12.20
£ £
Net income/(expenditure) for the reporting period (as per the statement
of financial activities) (126,053) 396,511
Adjustments for:
Depreciation charges 83,672 85,328
Losses/(gain) on investments (41,411) (26,414)
Interest received (201) (445)
Dividends received (8,854) (8,043)
Increase in debtors (23,868) (13,967)
Increase in creditors 29,854 (10,837)
Net cash provided by (used in) operating activities (86,861) 422,133

Page 23

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. STATEMENT OF COMPLIANCE

Benslow Music Trust is a charitable company incorporated in England. The registered office is:

Benslow Music, Benslow Lane, Hitchin, Hertfordshire SG4 9RB

The charitable company's financial statements have been prepared in compliance with Charities SORP (FRS 102) as it applies to the financial statements for the year ended 31 December 2021.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value, as modified by the revaluation of certain assets. The Statement of Financial Activities (SOFA) and the Statement of Financial Position consolidate the financial statements of the charity and its wholly owned subsidiary undertaking, Benslow Music Enterprises Limited on a line by line basis.

Benslow Music Trust meets the definition of a public benefit entity under FRS 102.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Page 24

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2021

2. ACCOUNTING POLICIES - continued

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - 4% on cost Plant and machinery - 7.5% on cost Fixtures and fittings - 25% on reducing balance

Fixed assets (excluding investments) are stated at cost less accumulated depreciation. The costs of minor additions or those costing below £150 are not capitalised.

The freehold land and buildings are subject to charitable covenants laid down in the original bequest under the 1952 Seebohm Will (see Note 15). Building development since that time, mostly from unrestricted funds, has been substantial, to the point where the original elements of the buildings are largely of academic interest. It has however been the accounting practice in previous years to distinguish between building work financed from unrestricted funds and buildings attributed to the original bequest.

As all buildings on the site - whatever their funding source - effectively become subject to the original charitable covenants which apply to the land on which they stand, this accounting distinction is now considered irrelevant and contrary to clear presentation. Land and buildings on the Little Benslow Hills site and any related funds are wholly shown within a restricted fund known as the "Property Fund".

Stocks

Stock consists of the music library, which is included at a modest valuation of £3,330.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

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

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds can only be used for 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.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Page 25

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2021

2. ACCOUNTING POLICIES - continued

Investments

The investments are managed on behalf of the charity by Investec.

Investments are stated at market value as at the balance sheet date. The market value is as supplied by Investec.

The Statement of Financial Activities includes the net gains and losses (realised and unrealised) arising on the revaluations and disposals throughout the year. A separate statement is included splitting the recognised and unrecognised gains and losses.

Value Added Tax

The Trust is partially exempt from charging Value Added Tax. Accordingly, it can only recover from HM Customs and Excise part of the tax incurred on supplies and services bought. Non-recoverable Value Added Tax is shown within charitable activities in the Statement of Financial Activities.

Legal status of the Trust

The Trust is a company limited by guarantee and has no share capital. The liability of each member in the event of winding-up is limited to £1 per member of the charity.

Financial instruments

The Trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

3. DONATIONS AND LEGACIES

Group

Group
31.12.21 31.12.20
£ £
Donations 125,949 647,222
Subscriptions 36,192 60,942
162,141 708,164
Charity
Donations 132,761 652,502
Subscriptions 36,192 60,942
168,953 713,444

Page 26

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2021

4. OTHER TRADING ACTIVITIES Group

Other lettings
Bar sales
Charity
Other lettings
Bar sales
5.
INVESTMENT INCOME
Group & Charity
Dividends received
Deposit account interest
6.
INCOME FROM CHARITABLE ACTIVITIES
Group & Charity
Activity
Course fees
Music courses
Music lettings
Music lettings
Concerts, including grants
Concerts, including grants		 31.12.21
£
6,024
21,619
27,643
6,024
21,619
27,643
31.12.21
£
8,854
201
9,055
31.12.21
£
658,875
40,810
20,896
720,581		 31.12.20
£
1,362
13,672
15,034
1,362
13,672
15,034
31.12.20
£
8,043
445
8,488
31.12.20
£
488,648
29,657
17,966
536,271

Page 27

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2021

7.
OTHER INCOME
Group
Management charge
Other income
Job retention scheme
Charity
Management charge
Other income
Job retention scheme
8.
RAISING FUNDS
Other trading activities
Group
Purchases
Charity
Purchases
9.
CHARITABLE ACTIVITIES COSTS
Group
Operation of courses and musical activities
Charity
Operation of courses and musical activities
10.
SUPPORT COSTS
Group
Other
£
Operation of courses and
musical activities
437,962
Charity
Other
£
Operation of courses and
musical activities
437,239		 31.12.21
£
29,032
6,355
68,137
103,524
£
46,611
6,355
68,137
121,103
31.12.21
£
57,238
9,965
Direct costs
Support costs
(See note 10)
£
£
603,033
563,828
Direct costs
Support costs
(See note 10)
£
£
646,299
558,535
Other 2
Other 3
Governance
costs
£
£
£
58,120
59,120
8,626
Other 2
Other 3
Governance
costs
£
£
£
57,995
56,875
6,426		 31.12.20
£
25,523
-
-
25,523
£
35,842
-
-
35,842
31.12.20
£
41,896
7,250
Totals
£
1,166,861
Totals
£
1,204,834
Totals
£
563,828
Totals
£
558,535

Page 28

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2021

Support costs, included in the above, are as follows:

10. SUPPORT COSTS – continued

Wages
Rent, rates and service charge
Insurance
Light and heat
Gardener/Technical and supervisory
fees
Repairs and maintenance to grounds
and buildings
Printing, postage and stationery
Redundancy costs
Depreciation of tangible fixed assets
Computer costs
Hire of equipment
Advertising
Telephone
Consultancy fees
Subscriptions
Interest and charges
Non-recoverable VAT
General expenses
Commission paid
Bad debts
Auditors’ remuneration		 Group
31.12.21
31.12.20
Operations
of courses
and musical
activities
Total
activities
£
£
215,323
153,041
5,565
11,965
11,964
9,924
26,567
31,915
12,022
14,574
77,693
14,218
5,156
3,819
-
21,082
83,672
85,328
33,231
18,380
8,699
10,249
5,984
4,547
5,435
6,362
4,771
3,765
608
775
6,513
5,756
40,183
31,386
10,409
8,693
1,407
1,106
-
-
8,626
8,176
563,828
445,061		 Charity
31.12.21
31.12.20
Operations
of courses
and
musical
activities
Total
activities
£
£
215,323
153,041
5,565
11,965
11,964
9,924
26,567
31,915
12,022
14,574
77,693
14,218
4,433
3,819
-
21,082
83,672
85,328
33,231
18,380
8,699
10,249
5,859
4,547
5,435
6,362
4,771
3,765
608
775
5,675
5,040
40,183
31,386
10,409
8,693
-
-
-
-
6,426
6,076
558,535
441,139		 Charity
31.12.21
31.12.20
Operations
of courses
and
musical
activities
Total
activities
£
£
215,323
153,041
5,565
11,965
11,964
9,924
26,567
31,915
12,022
14,574
77,693
14,218
4,433
3,819
-
21,082
83,672
85,328
33,231
18,380
8,699
10,249
5,859
4,547
5,435
6,362
4,771
3,765
608
775
5,675
5,040
40,183
31,386
10,409
8,693
-
-
-
-
6,426
6,076
558,535
441,139
441,139

11. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.12.21 31.12.20
£ £
Depreciation - owned assets 83,672 85,328

12. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020.

Members of Council have not received any remuneration either directly or indirectly during the year and provide their services voluntarily. Certain expenses incurred on behalf of the Trust are reimbursed to Members of Council. An exception is made by agreement with the Charity Commission where certain Trustees occasionally act as tutors and receive the normal fee.

Trustees' expenses

Travel expenses amounting to £NIL were reimbursed to trustees in the year (2020 - £369 - 1 trustee).

Page 29

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2021

13. STAFF COSTS

Wages & Salaries
Employers NI		 31.12.21
£
582,713
32,470
615,183		 31.12.20
£
353,751
28,852
382,603

No employee received emoluments of more than £60,000.

The key management personnel of the charitable company comprises only of the Chief Executive Officer. The total employee benefits of the key management personnel of the charity were £55,174 (2020: £44,362).

The average monthly number of employees during the year was as follows:

Direct staff
Support staff		 31.12.21
20
16
36		 31.12.20
20
12
32

14. 2020 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Group

Unrestricted
funds
£
INCOME AND
ENDOWMENTS FROM
Donations and legacies
708,164
Charitable activities
Music courses
488,648
Music lettings
29,657
Concerts, including grants
17,966
Other trading activities
38,596
Investment income
8,488
Other income
25,523
Total
1,317,042
EXPENDITURE ON
Raising funds
41,896
Charitable activities
Operation of courses and musical activities
830,074
Total
871,970
Net gains/(losses) on investments
26,414
NET INCOME/(EXPENDITURE)
BEFORE TAXATION
471,486		 Restricted
funds
Endowment
funds
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
74,975
-
74,975
-
-
-
(74,975)
-		 Total
funds
£
708,164
488,648
29,657
17,966
38,596
8,488
25,523
1,317,042
41,896
905,049
946,945
26,414
396,511

Page 30

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2021

14. 2020 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued 2020 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued 2020 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued 2020 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted Restricted Endowment Total
funds funds funds funds
£
 £
 £
 £
Tax on subsidiary - - - -
NET INCOME/(EXPENDITURE) 471,486 (74,975) - 396,511
RECONCILIATION OF
FUNDS
Total funds brought forward 445,421 780,895 - 1,226,316
TOTAL FUNDS CARRIED FORWARD 916,907 705,920 - 1,622,827
Charity
Unrestricted Restricted Endowment Total
funds funds funds funds
£ £ £ £
INCOME AND
ENDOWMENTS FROM
Donations and legacies 713,444 - - 713,444
Charitable activities
Music courses 448,648 - - 488,648
Music lettings 29,657 - - 29,657
Concerts, including grants 17,966 - - 17,966
Other trading activities 15,034 - - 15,034
Investment income 8,488 - - 8,488
Other income 35,842 - - 35,842
Total 1,309,079 - - 1,309,079
EXPENDITURE ON
Raising funds 7,520 - - 7,520
Charitable activities
Operation of courses and musical activities 856,487 74,975 - 931,462
Total 864,007 74,975 - 938,982
Net gains/(losses) on investments 26,414 - - 26,414
NET INCOME/(EXPENDITURE) 471,486 (74,975) - 396,511
RECONCILIATION OF
FUNDS
Total funds brought forward 445,417 780,895 - 1,226,312
TOTAL FUNDS CARRIED FORWARD 916,903 705,920 - 1,622,823

Page 31

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2021

15. TANGIBLE FIXED ASSETS

Group & Charity
COST
At 1 January 2021
Additions
At 31 December 2021
DEPRECIATION
At 1 January 2021
Charge for year
At 31 December 2021
NET BOOK VALUE
At 31 December 2021
At 31 December 2020		 Freehold
property
£
1,872,003
-
1,872,003
1,203,803
74,880
1,278,683
593,320
668,200		 Plant and
machinery
Fixtures and
fittings
£
£
85,017
246,027
-
3,935
85,017
249,926
84,419
214,257
452
8,340
84,871
222,597
146
27,365
598
31,770		 Totals
£
2,203,047
3,935
2,206,982
1,502,479
83,672
1,586,141
620,831
700,568

Ownership of the freehold land comprising Little Benslow Hills, with buildings thereon, was assigned in 1952 to Rural Music Schools Association (subsequently renamed Benslow Music Trust) by the will of Miss Esther Seebohm and incorporated into the financial statements at the time of the gift. The charitable covenants contained in the will restrict its use to the main objectives of the Trust as set down in the current Memorandum and Articles and approved by the Charity Commission. A sale of any part of the property or a major variation in use of the overall site would therefore require formal approval by the Charity Commission.

In the opinion of the Board of Trustees, it is not practicable to value the land separately.

Page 32

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2021

16. FIXED ASSET INVESTMENTS Charity

Shares in
group
undertakings
Listed
investments
Unlisted
investments
£
£
£
MARKET VALUE
At 1 January 2020
1
370,967
7,076
Additions
-
103,867
-
Disposals
-
(57,052)
-
At 31 December 2020
1
417,782
7,076
PROVISIONS
Provision b/f
-
(66,984)
2,930
Revaluation adjustments
-
6,693
(5,772)
At 31 December 2020
-
(60,291)
(2,842)
NET BOOK VALUE
At 31 December 2020
1
478,073
7,659
At 31 December 2019
1
437,951
4,146		 Totals
£
378,043
103,867
(57,052)
424,859
(64,054)
921
(63,133)
487,991
442,097

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

Benslow Music Enterprises

Registered office: Benslow Music, Benslow Lane, Hitchin, Herts. SG4 9RB Nature of business: Lettings and other commercial activities

%
Class of share: holding
Ordinary 100
The summary financial performance of the subsidiary alone is:
31.12.21 31.12.20
£ £
Profit and loss account
Turnover 76.957 53,987
Direct costs (47,273) (34,376)
Gross profit 29,684 19,521
Administrative expenses (29,684) (19,521)
Net profit - -
Aggregate capital and reserves 4 4

Page 33

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2021

16. FIXED ASSET INVESTMENTS - continued

The market valuation was carried out by Investec.

Other unlisted investments represent cash held by the investment managers pending reinvestment.

Realised gains are included in the Statement of Financial Activities.

Investments are held primarily to provide an investment return for the charity.

17. STOCKS Group & Charity

Stocks Group
31.12.21
£
4,711		 31.12.20
£
4,893		 Charity
31.12.21
31.12.20
£
£
3,330
3,330

18. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Other debtors
Prepayments and accrued income
Social security and other taxes		 Group
31.12.21
31.12.20
£
£
3,352
588
48,328
20,204
8,381
15,490
2,191
1,961
62,252
38,243		 Charity
31.12.21
31.12.20
£
£
23,102
22,683
56,230
25,672
8,381
15,490
-
-
87,713
63,845		 Charity
31.12.21
31.12.20
£
£
23,102
22,683
56,230
25,672
8,381
15,490
-
-
87,713
63,845
63,845

19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Social security and other taxes
Other creditors
Accrued expenses		 Group
31.12.21
31.12.20
£
£
16,738
14,893
18,817
11,874
223,127
199,997
32,442
25,816
291,124
252,580		 Charity
31.12.21
31.12.20
£
£
12,870
14,255
18,817
11,874
222,767
199,997
39,555
38,029
294,009
264,155		 Charity
31.12.21
31.12.20
£
£
12,870
14,255
18,817
11,874
222,767
199,997
39,555
38,029
294,009
264,155
264,155

20. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows

Charity

Charity
31.12.21 31.12019
£ £
Within one year 2,500 2,637
Between one and five years 2,500 879
5,000 3,516

Page 34

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2021

21. MOVEMENT IN FUNDS

Group
Unrestricted funds
General fund
Designated fund - Contingency fund
Designated fund - IT
Designated fund – Garden fund
Designated fund – Development fund
Designated fund – Instrument fund
Restricted funds
Other
Property fund
Investment fund - property
TOTAL FUNDS
Net movement in funds, included in the above are
Group
Unrestricted funds
General fund
Designated fund – IT
Designated fund – Development fund
Designated fund – Instrument fund
Restricted funds
Other
Property fund
TOTAL FUNDS		 At 1.1.21
Net movement
in funds
Transfers
between funds
At 31.12.21
£
£
£
£
619,989
(39,834)
-
580,155
190,000
-
-
190,000
2,200
(2,200)
-
-
4,718
-
-
4,718
100,000
(14,066)
-
85,934
-
5,000
-
5,000
916,907
(51,100)
-
865,807
3,285
(73)
-
3,212
668,200
(74,880)
-
593,320
34,435
-
-
34,435
705,920
(74,953)
-
630,967
1,622,827
(126,053)
-
1,496,774
as follows:
Incoming
resources
Resources
expended
Gains and
losses
Movement in
funds
£
£
£
£
1,051,635
(1,132,880)
41,411
(39,834)
-
(2,200)
-
(2,200)
-
(14,066)
-
(14,066)
5,000
-
-
5,000
1,056,635
(1,149,146)
41,411
(126,053)
-
(73)
-
(73)
-
(74,880)
-
(74,880)
-
(74,935)
-
(74,953)
1,056,635
(1,224,099)
41,411
(126,053)

Page 35

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2021

21. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Group
Unrestricted funds
General fund
Designated fund - Contingency fund
Designated fund - IT
Designated fund – Garden fund
Designated fund – Development fund
Restricted funds
Other
Property fund
Investment fund - property
TOTAL FUNDS
Comparative net movement in funds, included in
Group
Unrestricted funds
General fund
Designated fund – Garden fund
Designated fund – Development fund
Restricted funds
Other
Property fund
TOTAL FUNDS		 At 1.1.20
Net movement
in funds
Transfers
between funds
At 31.12.20
£
£
£
£
253,221
366,768
-
619,989
190,000
-
-
190,000
2,200
-
-
2,200
-
4,718
-
4,718
-
100,000
-
100,000
445,421
471,486
-
916,907
3,380
(95)
-
3,285
74,880
(74,880)
-
668,200
34,435
-
-
34,435
780,895
(74,975)
-
705,920
1,226,316
396,511
-
1,622,827
the above as follows
Incoming
resources
Resources
expended
Gains and
losses
Movement in
funds
£
£
£
£
1,207,042
(866,688)
26,414
366,768
10,000
(5,282)
-
4,718
100,000
-
-
100,000
1,317,042
(871,970)
26,414
471,486
-
(95)
-
(95)
-
(74,880)
-
(74,880)
-
(74,975)
-
(74,975)
1,317,042
(946,945)
26,414
396,511

Page 36

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2021

21. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Group
Unrestricted funds
General fund
Designated fund - Contingency fund
Designated fund - IT
Designated fund – Garden fund
Designated fund – Development fund
Designated fund – Instrument fund
Restricted funds
Other
Property fund
Investment fund - property
TOTAL FUNDS		 At 1.1.20
Net movement
in funds
Transfers
between funds
At 31.12.21
£
£
£
£
253,221
326,934
-
580,155
190,000
-
-
190,000
2,200
(2,200)
-
-
-
4,718
-
4,718
-
85,934
-
85,934
-
5,000
-
5,000
445,421
420,386
-
865,807
3,380
(168)
-
3,212
743,080
(149,760)
-
593,320
34,435
-
-
34,435
780,895
(149,928)
-
630,967
1,226,316
270,458
-
1,496,774
A current year 12 months and prior year 12 months combined net
as follows:
Group
Incoming
resources
£
Unrestricted funds
General fund
2,258,677
Designated fund – Garden fund
10,000
Designated fund - IT
-
Designated fund – Development fund
100,000
Designated fund – Instrument fund
5,000
2,373,677
Restricted funds
Other
-
Property fund
-
-
TOTAL FUNDS
2,373,677		 movement in funds, included in the above are
Resources
expended
Gains and
losses
Movement in
funds
£
£
£
(1,999,568)
67,825
326,934
(5,282)
-
4,718
(2,200)
-
(2,200)
(14,066)
-
85,934
-
-
5,000
(2,021,116)
67,825
420,386
(168)
-
(168)
(149,760)
-
(149,760)
(149,928)
-
(149,928)
(2,171,044)
67,825
270,458

Page 37

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2021

21. MOVEMENT IN FUNDS - continued

Charity
Unrestricted funds
General fund
Designated fund - Contingency fund
Designated fund - IT
Designated fund – Garden fund
Designated fund – Development fund
Designated fund – Instrument fund
Restricted funds
Other
Property fund
Investment fund – property
TOTAL FUNDS		 At 1.1.20
Net movement
in funds
Transfers
between funds
At 31.12.20
£
£
£
£
619,985
(39,834)
-
580,151
190,000
-
-
190,000
2,200
(2,200)
-
-
4,718
-
-
4,718
100,000
(14,066)
-
85,934
-
5,000
-
5,000
916,903
(51,100)
-
865,803
3,285
(73)
-
3,212
668,200
(74,880)
-
593,320
34,435
-
-
34,435
705,920
(74,953)
-
630,967
1,622,823
(126,053)
-
1,496,770

Net movement in funds, included in the above are as follows:

Charity
Unrestricted funds
General fund
Designated fund – IT
Designated fund – Development fund
Designated fund – Instrument fund
Restricted funds
Other
Property fund
TOTAL FUNDS		 Incoming
resources
£
1,042,335
-
-
5,000
1,047,335
-
-
-
1,047,335		 Resources
expended
£
(1,123,580)
(2,200)
(14,066)
-
(1,214,799)
(73)
(74,880)
(74,953)
(1,214,799)		 Gains and
losses
Movement in
funds
£
£
41,411
(39,834)
-
(2,200)
-
(14,066)
-
5,000
41,411
(51,100)
-
(73)
-
(74,880)
-
(74,953)
41,411
(126,053)

Page 38

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2021

21. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Comparatives for movement in funds
Charity Net movement Transfers
At 1.1.20 in funds between funds At 31.12.20
£ £ £ £
Unrestricted funds
General fund 253,217 366,768 - 619,985
Designated fund - Contingency fund 190,000 - - 190,000
Designated fund - IT 2,200 - - 2,200
Designated fund – Garden fund - 100,000 - 100,000
Designated fund – Development fund - 4,718 - 4,718
445,417 471,486 - 916,903
Restricted funds
Other 3,380 (95)
-		 3,285
Property fund 743,080 (74,880)
-		 668,200
Investment fund - property 34,435 - - 34,435
780,895 (74,975)
-		 705,920
TOTAL FUNDS 1,226,312 396,511 - 1,622,823
Comparative net movement in funds, included in the above as follows
Charity Incoming Resources Gains and Movement in
resources expended losses funds
£ £ £ £
Unrestricted funds
General fund 1,199,079 (858,725)
26,414		 366,768
Designated fund – Garden fund 100,000 - - 100,000
Designated fund – Development fund 10,000 (5,282)
-		 4,718
1,309,079 (864,007)
26,414		 471,486
Restricted funds
Other - (95)
-		 (95)
Property fund - (74,880)
-		 (74,880)
- (74,975)
-		 (74,975)
TOTAL FUNDS 1,309,079 (938,982)
26,414		 396,511

Page 39

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2021

21. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Charity Net movement Transfers
At 1.1.20 in funds between funds At 31.12.21
£ £ £ £
Unrestricted funds
General fund 253,217 326,934 - 580,151
Designated fund - Contingency fund 190,000 - - 190,000
Designated fund - IT 2,200 (2,200) - -
Designated fund – Garden fund - 4,718 - 4,718
Designated fund – Development fund - 85,934 - 85,934
Designated fund – Instrument fund - 5,000 - 5,000
445,417
420,386
-
865,803
Restricted funds
Other 3,380 (168) - 3,212
Property fund 743,080 (149,760) - 593,320
Investment fund - property 34,435 - - 34,435
780,895 (149,928) - 630,967
TOTAL FUNDS 1,226,312 270,458 - 1,496,770
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are
as follows:
Charity Incoming Resources Gains and Movement in
resources expended losses funds
£ £ £ £
Unrestricted funds
General fund 2,393,606 (2,077,417) 73,074 389,263
Designated fund - IT - (2,200) - (2,200)
Designated fund – Garden fund 10,000 (5,282) - 4,718
Designated fund – Development fund 100,000 (14,066) - 85,934
Designated fund – Instrument fund 5,000 - - 5,000
2,356,414 (2,003,853) 67,825 420,386
Restricted funds
Other - (168) - (168)
Property fund - (149,760) - (149,760)
- (149,928) - (149,928)
TOTAL FUNDS 2,356,414 (2,003,853) 67,825 270,458

Page 40

BENSLOW MUSIC TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2021

21. MOVEMENT IN FUNDS - continued

Purposes of unrestricted funds

General fund

The general reserve reflects the accumulated surplus from the general activities of Benslow Music Trust and is held to ensure long-term security for the Trust in the event of future deficits. and to enable resources to be built up to invest in Benslow's premises, plant and equipment.

Designated fund - Contingency fund

The purpose of the Contingency fund is to provide emergency resources in the event of unforeseen expenditure and to allow capital projects to commence whilst awaiting other funding.

Designated fund - IT fund

This reserve was created to ensure that adequate resources are available to ensure that the Trust's computer systems remain fit for purpose.

Designated fund – Garden fund

This fund was created using a specific donation in order to enhance the landscape of the campus.

Designated fund – Development fund

This fund represents a donation to the Trust by a former trustee. The find is to allow the Trust to develop in the future.

Purposes of restricted funds

Other

This is made up of several smaller restricted funds but no individual fund has more than £3,000.

Property

This fund mirrors the value at which land and buildings are included in the balance sheet.

Investment fund - property

This fund was established by the sale of an investment portfolio in 2013 to fund major building work.

22. RELATED PARTY DISCLOSURES

During the year the charitable company received a donation of £6,812 (2020 £5,280), management fees of £17,579 (2020 £10,319) and other cross charges of £NIL (2020 £NIL) from Benslow Music Enterprises Ltd, a wholly owned subsidiary. The charitable company also purchased goods amounting to £43,266 (2020 £30,335) from Benslow Music Enterprises Ltd during the year. At the reporting date, £27,584 (2020 £22,283) was receivable from Benslow Music Enterprises Ltd, and £9,901 (2020 £19,121) was payable to Benslow Music Enterprises Ltd.

23. INDEMNITY INSURANCE

The charitable company paid for the insurance premiums to indemnify trustees and senior staff from any loss arising from neglect or defaults of trustees or staff and any consequent loss.

Page 41