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2020-10-31-accounts

Charity Commission registered number: 1133912 Company number: 1930741

The Sixteen

(a company limited by guarantee)

Trustees' Report and Consolidated Financial Statements

For the year ended 31 October 2020

THE SIXTEEN (A Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2020

Page No.
Trust Information 1
Trustees’ Report 2 - 8
Independent Auditor’s Report 9 - 12
Consolidated Statement of Financial Activities 13 - 14
Consolidated Balance Sheet 15
Company Balance Sheet 16
Consolidated Cash Flow Statement 17
Notes to the financial statements 18 - 29

THE SIXTEEN (A Company Limited by Guarantee)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2020

The Trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 October 2020.

REFERENCE AND ADMINISTRATIVE DETAILS

The directors of the charitable company (the charity) are its trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees.

The trustees serving during the year and since the year end were as follows:

Robin Barda (Chairman)
Lord Briggs of Westbourne
Harry Christophers CBE
Mary Deissler
Lady Heseltine
Keith Parker
Richard Price
Adam Singer
Lord Smith of Finsbury
Chief Executive: Marie-Sophie Willis
Registered office: Quadrant House
10 Fleet Street
London EC4Y 1AU
Independent Auditors: Moore Kingston Smith LLP
London
EC1M 7AD
Bankers: HSBC plc
60 Queen Victoria Street
London EC4N 4TR
Charity number: 326917
Company number: 1930741

1

THE SIXTEEN (A Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED)

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Sixteen is a company limited by guarantee governed by its Memorandum and Articles of Association dated 1 June 1985 and revised May 2017. It is registered as a charity with the Charity Commission. There are currently 12 members (9 in 2020). No person may be admitted to membership of the Company unless he/she is first approved by the Council.

Appointment of Trustees

As set out in the Articles of Association, the Chair of the Trustees is nominated by the members.

Trustees are nominated by the existing Trustees.

Trustee induction and training

New trustees undergo an orientation day to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes, the business plan and recent financial performance of the charity.

During the induction day they meet key employees and other Trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. They are also encouraged to attend rehearsals, performances and workshops whenever possible.

Organisation

The Board of Trustees, which may not have less than 3 members, administers the Charity. The Board meets quarterly and there are sub-committees covering finance and employment which meet more regularly. A Chief Executive is appointed by the Trustees to manage the day to day operations of the Charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance, employment and performance related activity. Artistic policy is managed by the Artistic Director.

The charity engages in fundraising activities but does not make use of outsourced professional fundraisers. It makes approaches to potential donors, trusts and foundations who provide an important source of income to the organisation. No complaints have been received by the charity in relation to fundraising.

Related parties

The charity’s wholly owned subsidiary, The Sixteen Productions Limited, was established to exploit, manage and market the recordings made by The Sixteen and distributes all its profits to the Charity (see note 12 to the accounts).

Risk management

The trustees have a risk management strategy which comprises:

2

THE SIXTEEN (A Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED)

Risk management (continued)

A key element in the management of financial risk is the setting of a reserves policy and its regular review by Trustees. A major current risk is that posed by the Covid-19 epidemic. The Sixteen was forced to cancel all its work from mid-March 2020 and has had only a few engagements since then. As well as taking advantage of the government furlough scheme, The Sixteen was fortunate to qualify for an emergency grant from ACE and has since been in receipt of a grant from the Culture Recovery Fund. The Sixteen’s audience has also been hugely generous in allowing The Sixteen to treat much of the ticket income for cancelled performances as donations. The combination of these things – along with the outstanding continued generosity of our patrons, donors, trusts and foundations – mean that the group has been able to remain in a stable position.

Objectives and activities

The objectives of the charity are:

The charity has the general aim of promoting choral and orchestral works to the very highest professional standards and to the widest possible audience. For example, the Choral Pilgrimage reaches audiences all over the UK.

The strategies employed to achieve the charity’s objectives are to:

The four major areas of activity are: concerts for which the choir and orchestra are hired by other promoters both within the UK and abroad; own promoted concerts; The Choral Pilgrimage, a nationwide tour of Cathedrals and Abbeys; outreach and education activities. The concerts which The Sixteen presents seek to combine performances with educational events, for example Choral Workshops and Schools matinees.

The Sixteen’s education and outreach strategy aims to:

3

THE SIXTEEN (A Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED)

Objectives and activities (continued)

In July 2011 The Sixteen established Genesis Sixteen, a training choir for 22 young singers funded by the Genesis Foundation. This innovative project aims to encourage young singers to take up a professional career in choral singing. The programme was extended to include a Conducting Scholar in 2014.

Achievements and performance

The 2019/2020 season was vastly reduced in scope due to the Covid-19 epidemic, with most engagements and outreach and education activity cancelled or postponed. During the year ended 31 October 2020, The Sixteen gave 22 public performances, made two recordings, held various educational activities online and significantly developed their digital activity. In addition they collaborated on an education project with the Medway and Chichester University.

From November 2019 to the end of February 2020, there was a rich and varied programme of activity. In line with our objectives to promote and advance the education of the public in the arts, and in particular orchestral as well as choral music, the choir and orchestra tour in February 2020 built on the success of the previous six years of this tour with four performances of Handel’s Acis and Galatea around the UK including an education project with Chichester University, a singing day with Medway Music Hub and a chorister workshop in Derby. We are proud to be continuing our residencies at Kings Place, London, and the Wigmore Hall and in a continuation of our relationship with Cadogan Hall we were pleased to give three performances there during the season. Between these three venues we are strategically able to develop our presence in London.

Autumn 2019 saw a great deal of variety in the projects undertaken by The Sixteen. In our on-going association with Sir James MacMillan and the Genesis Foundation, we were delighted to revive the MacMillan Stabat mater and to team up once again with the Britten Sinfonia to give the US premiere of the work at the Lincoln Center in New York. On return from New York we repeated the work at Ely Cathedral. At the same time, The Sixteen was delighted to do something a little different when they gave a performance at Ronnie Scott’s Jazz Club. Nine singers and Harry Christophers collaborated with jazz pianist, violinist and accordion players from Classical Kicks, in a performance that melded choral a cappella with jazz improvisations. It was a huge success and a follow-up project is planned for 2022. December saw The Sixteen give its traditional a cappella Christmas tour in eight locations across the UK as well as a sold out own-promotion performance of Handel’s Messiah at Westminster Cathedral.

The Sixteen’s record label, CORO, released five albums (which included three new recordings by The Sixteen), one boxed set collection and a digital single. In terms of radio coverage we are delighted to remain the Voices of Classic FM, which ensures our work is broadcast to a truly significant audience

4

THE SIXTEEN (A Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED)

Achievements and performance (continued)

around the world. Regrettably our planned relay of the Choral Pilgrimage concert from York Minster on Radio 3 was cancelled along with the concert, due to the pandemic.

After such a strong start to the year, it was a very different picture from March 2020, when things took a dramatic turn. From 1 April 60% of the administrative team were put on full time furlough. The Choral Pilgrimage in 2020 was to have marked the 20[th] anniversary of the tour. With its first performance scheduled on 19 March, we regrettably had to take the decision to postpone because of the imminent lockdown, along with the rest of the tour (all 27 concerts which were scheduled between March and October 2020). We are delighted to have been able to reschedule the tour into 2021 and begin performances in June, thanks to help from the Culture Recovery Fund, which is helping subsidise the reduced income as a result of social distancing. The Choral Pilgrimage continues to be central to The Sixteen’s artistic activities and ambitions to give world-class performances of the finest choral music in the repertoire to the widest possible audience.

Education and outreach activity also continue to have a high profile and position in our mission to introduce our repertoire to as wide an audience as possible. Part of the ambition is to develop a greater reach into different segments of communities in the UK destinations to which we tour, and also to build on existing relationships with schools and music hubs around the UK. It is a big regret that so much of The Sixteen’s outreach work had to be cancelled in 2020 because of the pandemic and the resulting inability to get into schools or the other community centres in which we operate. We were able to run some online workshops and to offer free online content in the meantime, and are planning a full schedule of education and outreach activity from autumn 2021.

If there was one silver lining as a result of the pandemic, it was how it allowed us to develop, at high speed, a digital plan which allowed us to connect with audiences in a way we would never have dreamt of previously. From March to September – with no concert work taking place – the principal focus of our energy (other than ensuring the operational and financial survival of the organisation) was to develop digital content in order to retain a connection with our audiences and to allow us to reach out to new ones. We formed several key partnerships, working with the Stay at Home Choir to provide singers in workshops for one of the world’s biggest online virtual choirs in a performance of James MacMillan’s O Radiant Dawn. We worked with Warner Classics to record a digital virtual piece that connected with thousands of amateur singers who added their voices virtually to the voices of The Sixteen in a performance of Amazing Grace with American folk singer Judy Collins. We filmed and recorded a digital ‘lockdown’ performance of Sheppard’s Libera Nos , with our singers each filming themselves singing their line at home. The film was watched by over 150,000 people and provided genuine solace, consolation and connection for many people, at a time when so many were feeling isolated and disconnected. The performers from The Sixteen provided regular performance and video diary content which was scheduled weekly and we began a fortnightly podcast series called Choral Chihuahua in which Harry Christophers, Eamonn Dougan (The Sixteen’s Associate Conductor) and Robert Hollingworth (Artistic Director of I Fagiolini) discussed ‘all things choral’ and interviewed guest artists. In addition to this, The Sixteen produced a series of programmes called A Choral Odyssey which began filming in October 2020 and were relayed online between November 2020 and April 2021.

5

THE SIXTEEN (A Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED)

Achievements and performance (continued)

We were delighted to be part of an entrepreneurial online festival of live performances called London Live, which saw our performance at Kings Place in September 2020 relayed live to a Global audience. Our only other concert with a live audience in autumn 2020 was a socially distanced performance at Temple Church in October, also streamed live.

Public benefit

We have referred to the guidance in the Charity Commission’s general guidance on Public Benefit including the guidance 'public benefit: running a charity (PB2),' when reviewing our aims and objectives and in planning our future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.

Financial Review

The end of the year saw a deficit of £15,881 (2019: deficit of £90,118) for The Sixteen Limited.

The company is prohibited by its memorandum from payment of any dividend.

The Charity’s wholly owned trading subsidiary, The Sixteen Productions Limited had a successful year. Total profits were £36,089 (2019: £50,145 after a stock write off adjustment of £17,263). The trading subsidiary distributes all its profits to the Sixteen Limited. The Trustees are pleased with the commercial success of the venture which operates the CORO record label and licenses recordings made by the group. The principal funding, aside from profits from The Sixteen Productions Limited was fees from engagements, £530,640, donations of £318,278 and an emergency recovery grant of £35,000. The Trustees are grateful to Quadrant Chambers for their support through the provision of office accommodation and the Genesis Foundation for its support of The Sixteen’s young artists training programme.

Under the Memorandum and Articles of Association, the charity has the power to invest in any way the Trustees wish. The Trustees, having regard to the liquidity requirements of operating the company and to the reserves policy have operated a policy of keeping available funds in an interest bearing deposit account and a highly-diversified multi-asset fund.

Reserves policy

The Trustees have established the level of reserves (that is those funds that are freely available) that the charity ought to have. Reserves are needed to bridge the funding gaps between spending on concerts and recordings and receiving resources through hire fees, admission charges and grants that provide funding. Reserves are also held to cover possible defaults by promoters and other expenditure.

The Trustees, therefore, consider that the desired minimum level of reserves as at 31 October 2020 would be £250,000. The actual free reserves at 31 October 2020 were £323,240 of which all were held for unrestricted purposes. This figure includes distributable reserves from the trading subsidiary of £45,432.

6

THE SIXTEEN (A Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED)

Plans for the future

At the time of writing this report, The Sixteen is delighted to have started performing again in front of a live audience and is feeling cautiously optimistic about a return to more normal operation from the autumn. Most of the team are now back from furlough as the concert, education and outreach planning for the autumn steps up. The team continues to work remotely from home and will be looking at a hybrid model of working from the autumn. The challenge as we return to full concert work will be how to stay connected with the audiences we have gained through our digital content over the last year. Like many organisations, we are planning a level of digital output to complement the live performance. Not only to enable a wider global reach but also to allow those members of our audience who will continue to feel vulnerable and unable to attend concerts in person to experience our music.

Our driving mission is to take the glorious choral music of our heritage to as wide an audience as we possibly can, across the length and breadth of the UK. It’s what defines The Sixteen and we are incredibly proud of it. We want as many people as possible to be able to experience this and hope that by streaming one of our Choral Pilgrimage concerts many more people will be able to enjoy it. To this end we filmed our performance recently in Liverpool Metropolitan Cathedral which we will make available online.

Genesis Foundation

The relationship with the Genesis Foundation continues to provide exceptional and ground-breaking opportunities. We would like to thank John Studzinski and the Genesis Foundation here for their enlightened and visionary approach to both initiating and supporting projects and artists. As outlined in last year’s report, the Foundation launched the Genesis Covid-19 Artists Fund to support the many freelancers involved with the Foundation’s programmes. The Sixteen received £20,000 to distribute to members of the Genesis Sixteen alumni who are in desperate need of support. For some of these individuals the funds may determine whether they remain in the profession at a critical time when there is no paid work for professional singers, particularly for those at the start of their careers for whom the government support for freelancers does not apply. The Foundation has since opened up another fund to help freelance artists called the Genesis Foundation Kickstart Fund.

The Genesis Foundation was particularly supportive of The Sixteen’s young artist training programme, Genesis Sixteen, at a time when we had to reimagine the courses due to being unable to hold them in the usual way. Two courses during the year were held virtually and the rest were postponed into the 2021/2022 season. The Foundation continues to support the Genesis Sixteen young artist training programme and we will be running courses in 2021 concurrently for cohorts 9, 10 and 11, because of rescheduled courses that were postponed in 2020.

Finally, we would like to acknowledge the great loyalty and support of the generous individuals, trusts and foundations, corporates, ACE with its Culture Recovery Fund, who support the work of The Sixteen. We are heavily indebted to you all. Your support means more than ever, particularly during the current challenging times for us all. Thank you for standing by us when we need you most.

7

THE SIXTEEN (A Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED)

FIXED ASSETS

The movements in fixed assets during the year are set out in note 14 to the accounts.

AUDITORS

A resolution to re-appoint Moore Kingston Smith, will be proposed at the Annual General Meeting.

BY ORDER OF THE BOARD Robin Barda (Chairman) 28 July ................................... 2021

8

Independent Auditors Report to the Members and Trustees of The Sixteen

Opinion

We have audited the financial statements of The Sixteen (the ’company’) for the year ended 31 October 2020 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement 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 FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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:

9

Independent Auditors Report to the Members and Trustees of The Sixteen

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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement 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.

10

Independent Auditors Report to the Members and Trustees of The Sixteen

Responsibilities of trustees (continued)

In preparing the financial statements, the trustees are responsible for assessing the group and parent 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 group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

11

Independent Auditors Report to the Members and Trustees of The Sixteen

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

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and, in respect of the consolidated financial statements, to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters which 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 any party other than the charitable company, the charitable company’s members, as a body, and the charity’s trustees, as a body, for our audit work, for this report, or for the opinion we have formed.

Date: 28 July 2021

James Cross (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD

12

The Sixteen

Consolidated Statement of Financial Activities

For the year ended 31 October 2020

Note
Income
Donations and legacies
2
Other trading activities
12
Investment income
Income from charitable activities
3
Other income
4
Total
Expenditure
Raising funds:
Fundraising costs
6
Trading expenditure
7
8
Total
Net (expenditure)/income
Gains on investments
16
Transfers between funds
Funds at 1 November 2019
25
Funds at 31 October 2020
25
Expenditure on charitable
activities		 £
255,278
238,936
784
423,140
38,754
956,892
64,788
220,075
690,190
975,053
(18,161)
2,280
-
(15,881)
375,913
360,032
Unrestricted
Funds		 £
98,000
107,500
205,500
205,500
205,500
-
-
-
-
-
-
Restricted
Funds		 £
353,278
238,936
784
530,640
38,754
1,162,392
64,788
220,075
895,690
1,180,553
(18,161)
2,280
-
(15,881)
375,913
360,032
Total Funds
2020		 £
386,292
332,227
90
1,397,211
50
2,115,870
73,941
297,801
1,840,784
2,212,526
(96,656)
6,538
-
(90,118)
466,031
375,913
Total Funds
2019

The statement of financial activities contains all gains and losses recognised in the year and the results reported relate to continuing operations.

The total income (including gains and losses) of the parent charity amounted to £951,692 (2019: £1,872,312) and total expenditure was £977,698 (2019: £1,930,593) giving a net deficit for the year of £26,006 (2019: £58,281).

13

The Sixteen Consolidated Statement of Financial Activities For the year ended 31 October 2019

Note
Income
Donations and legacies
Other trading activities
12
Investment income
Income from charitable activities
3
Other income
Total
Expenditure
Raising funds:
Fundraising costs
6
Trading expenditure
7
8
Total
Net income/(expenditure)
Gains on investments
Transfers between funds
Funds at 1 November 2018
25
Funds at 1 November 2019
25
Expenditure on charitable
activities		 £
254,742
332,227
90
1,231,711
50
1,818,820
73,941
297,801
1,543,734
1,915,476
(96,656)
6,538
-
(90,118)
466,031
375,913
Unrestricted
Funds		 £
131,550
-
-
165,500
-
297,050
-
-
297,050
297,050
-
-
-
-
-
-
Restricted
Funds		 £
386,292
332,227
90
1,397,211
50
2,115,870
73,941
297,801
1,840,784
2,212,526
(96,656)
6,538
-
(90,118)
466,031
375,913
Total Funds 2019

The statement of financial activities contains all gains and losses recognised in the year and the results reported relate to continuing operations.

14

The Sixteen Consolidated Balance Sheet As at 31 October 2020

Note
Fixed assets
Tangible fixed assets
14
Unlisted investments
15
Listed investments
16
Current assets
Stock
17
Debtors
18
Cash at bank and in hand
Creditors:Amounts falling due
19
within one year
Net current assets
Total assets less current liabilities
Net assets
Funds
Unrestricted funds
Designated funds
24
Restricted funds
23
Total funds		 2020
£
6,792
-
66,643
53,025
130,458
321,647
505,130
(218,533)		 2020
£
73,435
286,597
360,032
360,032
330,032
30,000
-
360,032		 2019
£
9,348
-
129,615
50,600
324,256
281,941
656,797
(419,847)		 2019
£
138,963
236,950
375,913
375,913
345,913
30,000
-
375,913

28 July 2021 These accounts were approved and authorised for issues by the Board on ……………….. and signed on their behalf by:

……………………………………..

Robin Barda Chairman

15

The Sixteen Company Balance Sheet As at 31 October 2020

Note
Fixed assets
Tangible fixed assets
14
Investment in subsidiary
15
Other investments
16
Current assets
Debtors
18
Cash at bank and in hand
Creditors:Amounts falling due
19
within one year
Net current assets
Total assets less current liabilities
Net assets
Funds
Unrestricted funds
Designated funds
24
Restricted funds
23
Total funds		 2020
£
6,512
1
66,643
141,042
283,591
424,633
(183,469)		 2020
£
73,156
241,164
314,320
314,320
284,320
30,000
-
314,320		 2019
£
8,490
1
129,615
327,466
249,602
577,068
(374,848)		 2019
£
138,106
202,220
340,326
340,326
310,326
30,000
-
340,326

These accounts were approved and authorised for issues by the Board on ……………….. and signed on 28 July 2021 their behalf by:

……………………………………..

Robin Barda Chairman

16

The Sixteen

Consolidated Statement of Cash Flows For the year ended 31 October 2020

Note
2020
£
Cash flows from operating activities
Cash flows from investing activities
Write off of investments
25b
-
Sale of investments
16
65,252
Gain on investments
16
(2,280)
Purchase of tangible fixed assets
14
(2,027)
Change in cash and cash equivalents
Net cash provided by operating activities
Activities
Net (expenditure)/income for the year
Adjustments for:
Depreciation charges
Decrease/(increase) in stock
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash provided by/(used in) operating activities
Net cash provided by/(used in)
operating activities (see below)
Net cash used in investing activities
Cash and cash cash equivalents at the
beginning of the reporting period
Cash and cash cash equivalents at the end of
the reporting period		 2020
£
(21,239)
60,945
39,706
281,941
321,647
2020
£
(15,881)
4,583
(2,425)
193,798
(201,314)
(21,239)		 2019
£
100
(486)		 2019
£
90,811
(386)
90,425
191,516
281,941
2019
£
(96,656)
5,295
22,807
59,666
99,699
90,811

17

The Sixteen Notes to the Financial Statements For the year ended 31 October 2020

1 Accounting policies

a) Accounting convention

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The company is a public entity for the purposes of FRS 102 and a registered charity established as a company limited by guarantee and therefore has also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and Charities Act 2011. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

b) Going concern

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the company to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the company's forecasts and projections and have taken account of the Coronavirus pandemic. As part of the going concern review the trustees prepared budget forecasts to October 2022, demonstrating that the company had adequate resources to continue in operation for at least twelve months from the approval of the financial statements. The company therefore continues to adopt the going concern basis in preparing its financial statements.

c) Basis of Consolidation

The consolidated (group) financial statements comprise the Charity and its wholly owned subsidiary The Sixteen Productions Limited (registered company number 04252277) made up to 31 October. The principal activity of The Sixteen Productions is the education of the public in arts, particularly the arts of orchestral, choral and other music, through the sale and distribution of CDs, DVDs and digital recordings.

The results of the trading subsidiary company are presented in the Consolidated Statement of Financial Activities by disclosing the income and expenditure derived from its non-charitable trading activities separately from those of the Charity. A summary profit and loss account for the trading subsidiary is included in note 12. A summary of the balance sheet for the trading subsidiary is included in note 12.

The subsidiary company’s assets and liabilities are consolidated in the group balance sheet on a line-by-line basis.

d) Income

Income is recognised when there is entitlement to the income, the amount can be measured reliably and the income is probable. The following specific policies are applied to particular categories of income:

Income from concerts and record sales are included in the accounts in the year in which the concerts or record sales take place.

18

The Sixteen Notes to the Financial Statements For the year ended 31 October 2020

1 Accounting policies (continued)

d) Income (continued)

Voluntary income received by way of grants and donations is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. Gift aid recoverable is accounted for as the charity earns the right to consideration by its performance.

Income from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance.

e) Expenditure

Expenditure is accounted for on an accruals basis under the appropriate expense category. Expenditure is recognised once there is legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and it can be measured reliably.

f) Depreciation

Depreciation is provided at rates calculated to write off the cost of fixed assets less their estimated residual value over their estimated useful lives as follows:-

Office equipment 20-33% straight line per annum

g) Foreign exchange

Transactions in foreign currencies are recorded at the rates at the date of the transaction, and exchange fluctuations are written off at the time of payment. Assets and liabilities at the balance sheet date have been converted at the rate ruling at that date.

h) Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other shortterm liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

i) Financial Instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

19

The Sixteen Notes to the Financial Statements For the year ended 31 October 2020

1 Accounting policies (continued)

j) Investments

Unlisted investments are stated at original purchase price. Listed investments are stated at fair value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses on revaluation and disposals of listed investment funds throughout the year.

k) Stock

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

l) Post retirement benefits

The charity operates a defined contribution pension scheme. Contributions are charged to the Statements of Financial Activities when they become payable.

m) Unrestricted funds

Unrestricted general funds are funds that can be used in accordance with the charitable objectives at the discretion of the Trustees.

n) Designated funds

Designated funds are funds set aside by the Trustees out of unrestricted general funds for specific/future purposes.

o) Restricted funds

Restricted funds are those where the donor has provided for the donation to be spent in furtherance of a specified charitable purpose.

p) Critical accounting judgements and estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

• Stock impairment

Impairment of stock is reviewed annually. The stock provision is sensitive to changes in management assumptions. The stock provision is amended where necessary to reflect the physical condition of stock and expected future sales.

20

The Sixteen Notes to the Financial Statements For the year ended 31 October 2020

2 Donations and legacies

Donations
Gift aid
Grants and corporate sponsorship
Grant, Trust and Foundation funding
Total		 2020
£
171,398
33,880
80,500
67,500
353,278		 2019
£
154,630
24,662
66,000
141,000
386,292

Total

The income from grants and donations was £353,278 (2019: £386,292) of which £255,278 (2019: £254,742) was unrestricted and £98,000 (2019: £131,550) was restricted.

3 Income from charitable activities

Choral Performances including recordings
Educational projects
Total		 2020
£
423,140
107,500
530,640		 2019
£
1,231,711
165,500
1,397,211

Total

The income from charitable activities was £530,640 (2019: £1,397,211) of which £423,140 (2019: £1,231,711) was unrestricted and £107,500 (2019: £165,500) was restricted.

4 Other income

Coronavirus job retention scheme income
Miscellaneous income		 2020
£
37,620
1,134
38,754		 2019
£
-
50
50

All other income in 2020 and in 2019 was unrestricted.

5 Net movement in funds

This is stated after charging:

Auditor's remuneration
Depreciation on fixed assets		 2020
2019
£
£
8,086
7,500
4,583
5,295
Group		 2020
2019
£
£
5,176
4,800
4,005
4,716
Company

21

The Sixteen Notes to the Financial Statements For the year ended 31 October 2020

6 Fundraising costs

Fundraising costs
Total 2020
Total 2019
Trading expenditure
Cost of trading subsidiary
Other fundraising costs
Total 2020
Total 2019		 Activities
Undertaken
Directly
£
-
-
-
Activities
Undertaken
Directly
£
202,855
-
202,855
281,935		 Support
costs
(Note 9)
£
64,788
64,788
73,941
Support
costs
(Note 9)
£
-
17,220
17,220
15,866		 Total 2020
£
64,788
64,788
73,941
Total 2020
£
202,855
17,220
220,075
297,801

7 Trading expenditure

8 Charitable activities

Choral performances including recordings and educational projects.

Total 2020
Total 2019		 Activities
£
586,347
1,496,812		 Support
£
309,343
343,972		 Total 2020
£
895,690
1,840,784

The support costs included in this note are in respect of Choral Performances & Recording and Educational Projects per note 9.

22

The Sixteen Notes to the Financial Statements For the year ended 31 October 2020

9 Support costs

Accountancy and
professional services
General marketing
Total
Total
General office
Finance costs
Information
technology
Human resources
Communication
costs
Governance costs
(note 10)
Communication
costs
Accountancy and
professional services
General marketing
General office
Finance costs
Information
technology
Human resources
Governance costs
(note 10)		 Cost of
raising
funds
£
1,228
-
-
-
63,540
-
-
20
64,788
Cost of
raising
funds
£
1,289
-
-
-
66,041
-
-
6,611
73,941

 Trading
expenditure
£
1,813
1,191
718
1,041
7,000
1,014
2,707
1,736
17,220
Trading
expenditure
£
2,017
698
1,795
1,177
6,678
666
2,518
317
15,866		 Choral
Performances &
Recording
£
11,741
7,451
4,524
7,113
135,159
6,358
16,938
11,507
200,791
Choral
Performances &
Recording
£
15,714
5,202
17,210
8,769
144,829
4,965
18,765
22,432
237,886		 Educational
Projects
£
3,917
1,775
1,070
1,528
93,830
1,523
4,034
875
108,552
Educational
Projects
£
3,667
697
1,792
1,175
95,293
677
2,515
270
106,086		 Total 2020
£
18,699
10,417
6,312
9,682
299,529
8,895
23,679
14,138
391,351
Total 2019
£
22,687
6,597
20,797
11,121
312,841
6,308
23,798
29,630
433,779

10 Governance Costs

Total
Audit Fee
Board meeting costs
Trustee training
Trustee recruitment		 2020
£
9,425
-
-
992
10,417		 2019
£
6,525
72
-
-
6,597

23

The Sixteen

Notes to the Financial Statements For the year ended 31 October 2020

11 Employees


a) Staff costs
Wages and salaries
Social security costs
Pension costs		 2020
2019
£
£
316,684
330,254
27,095
29,246
12,005
11,393
355,784
370,893
Group		 2020
2019
£
£
263,303
272,574
22,325
23,799
10,220
9,236
295,848
305,609
Company

b) The average weekly number of employees during the year was made up of as follows:

Office and management 2020
2019
10
11
Group		 2020
2019
8
9
Company

There was one employee who earned over £60,000 in 2020 (2019: one) with remuneration in the bracket £60,000 - £69,999.

The total compensation paid to key management personnel in the group amounted to £204,942 (2019: £296,625). Key management personnel are considered to be the Chief Executives of The Sixteen and The Sixteen Productions Limited and Mr R H T Christophers as explained further in the related party note, note 23. Total key management personnel consists of three (2019: three) individuals.

12 Income earned from other activities

The wholly owned trading subsidiary The Sixteen Productions Limited is incorporated in the United Kingdom (company number 04252277) and distributes all of its profits to the charity. The Sixteen Productions Limited's principal trading activity is to promote, maintain, improve and advance the education of the public in the arts and in particular the arts of orchestral, choral and other music through the sale and distribution of CDs, DVDs and digital recordings.

Summary of the financial performance and position of The Sixteen Productions Limited

Statement of Profit and Loss
Income
Cost of sales and administrative costs
Interest received
Interest payable
Amounts written off investments / loan creditors
Profit before taxation
Tax on profit on ordinary activities
Profit for the financial year
Summary Balance Sheet
Tangible fixed assets
Investments
Currents assets
Current liabilities
Creditors due after more than one year
Total net assets		 2020
£
238,936
(202,105)
8
(750)
-
36,089
-
36,089
2020
£
279
-
118,753
(35,064)
(38,254)
45,714		 2019
£
332,227
(281,743)
11
(250)
(100)
50,145
-
50,145
2019
£
858
-
125,764
(46,034)
(45,000)
35,588

24

The Sixteen

Notes to the Financial Statements For the year ended 31 October 2020

12 Income earned from other activities (continued)

Summary Statement of Changes in Equity
Balance at 31 October 2019
Total comprehensive income
Distributions to The Sixteen
Balance at 31 October 2020		 £
Share capital
1
-
-
1		 £
Profit and
Loss
35,587
36,089
(25,963)
45,713
2020		 £
Total
35,588
36,089
(25,963)
45,714

13 Trustees' remuneration

No trustees received any remuneration in the year in their capacity as trustees (see note 22 for remuneration paid to trustees for other services). No expenses were reimbursed to trustees during the current or prior year.

14 Tangible Fixed Assets Group and Company

a) Group Tangible fixed assets

Cost
At 1 November 2019
Additions
At 31 October 2020
Depreciation
At 1 November 2019
Charge for the year
At 31 October 2020
Net Book Value
At 31 October 2020
At 1 November 2019		 Library
£
5,000
-
5,000
-
-
-
5,000
5,000		 Office
Equipment
£
31,216
2,027
33,243
26,868
4,583
31,451
1,792
4,348		 2020
£
36,216
2,027
38,243
26,868
4,583
31,451
6,792
9,348

The library consists of sheet music to be used in The Sixteen's performances. A charge for depreciation is not separately disclosed, because these items are continually replenished and updated.

25

The Sixteen

Notes to the Financial Statements For the year ended 31 October 2020

14 Tangible Fixed Assets Group and Company (continued)

b) Company Tangible fixed assets

Library
£
Cost
At 1 November 2019
5,000
Additions
-
At 31 October 2020
5,000
Depreciation
At 1 November 2019
-
Charge for the year
-
At 31 October 2020
-
Net Book Value
At 31 October 2020
5,000
At 1 November 2019
5,000
15 Investments in subsidiaries and unlisted investments
a) Company
Cost brought forward
Additions
Cost carried forward		 Office
Equipment
£
29,478
2,027
31,505
25,988
4,005
29,993
1,512
3,490		 2020
£
34,478
2,027
36,505
25,988
4,005
29,993
6,512
8,490
2020
Unlisted
shares
£
1
-
1

The investment represents 100% of the issued share capital of the The Sixteen Productions Limited, a company incorporated in the UK.

b) Group

Cost brought forward
Writen off
Cost carried forward		 2020
£
100
(100)
-

In 2018 The Sixteen Productions Ltd had an investment in The Sixteen Saul Recording LLP representing the company's capital contribution of £100. The Sixteen Saul Recording LLP was wound down and was deregistered from Companies House on 21 January 2020.

26

The Sixteen Notes to the Financial Statements For the year ended 31 October 2020

16 Listed investments - Group and Company

2020
£
Market Value at 1 November 2019 129,615
Sale of shares (65,252)
Gain on revaluation 2,280
Market Value at 31 October 2020 66,643
**17 ** Stock
Compact discs		 2020
2019
2020
2019
£
£
£
£
53,025
50,600
-
-
Group
Company
**18 ** Debtors
Trade debtors
Prepayments and accrued income
Other debtors
Amounts due from Sixteen Productions
Loan with Sixteen Productions		 2020
2019
2020
2019
£
£
£
£
62,783
248,527
37,971
216,385
35,961
74,917
33,799
64,234
31,714
812
31,018
812
-
-
-
1,035
-
-
38,254
45,000
Group
Company
130,458
324,256
141,042
327,466
**19 ** Creditors
2020
2019
2020
2019
£
£
£
£
Trade creditors
56,283
237,245
46,239
222,588
Other taxes and social security costs
3,583
23,768
2,433
20,002
Accruals
39,856
45,580
16,528
20,394
Deferred income
117,370
107,313
117,370
107,313
Other creditors
1,441
5,941
899
4,551
Group
Company
The inter-company loan is held at an interest rate of 2% above HSBC Bank Plc base lending rate and is
repayable when sufficient funds are available.
218,533
419,847
183,469
374,848

Deferred income represents grants and donations received for a specific future programme. Deferred income movements can be summarised as follows:

Deferred income summary
Brought forward
Recognised as income in the year
Deferred in the year
Carried forward		 2020
£
107,313
(107,313)
117,370
117,370
Group and		 2019
£
157,499
(157,499)
107,313
107,313
Company

27

The Sixteen Notes to the Financial Statements For the year ended 31 October 2020

20 Company Limited by Guarantee

The company is limited by guarantee, having no share capital. At 31 October 2020 two members have each undertaken to contribute in the event of the winding-up of the company, a sum not exceeding £1 per member.

21 Financial commitments

As at 31 October 2020 the company did not have any capital commitments (2019: £Nil).

22 Related party transactions

During the year conductor's fees totalling £89,950 (2019: £185,700) were paid for the services of trustee, Mr R H T Christophers, who conducted various musical performances. The amount was paid to Harry Christophers Limited. Mr R H T Christophers and his wife Mrs V Christophers are both directors of Harry Christophers Limited and Mr R H T Christophers is a trustee of The Sixteen. At 31 October 2020 £12,000 (2019: £26,100) was due to Harry Christophers Limited.

23 Restricted funds

Choral Pilgrimage 2020 fund
UK choir and orchestral tour fund
Educational Chorister fund
Choral Pilgrimage 2019 fund
UK choir and orchestral tour fund
Educational Chorister fund		 As at 1
November
2019
£
-
-
-
-
As at 1
November
2018
£
-
-
-
-		 Income
£
80,500
17,500
107,500
205,500
Income
£
36,000
32,500
228,550
297,050		 Expenditure
£
(80,500)
(17,500)
(107,500)
(205,500)
Expenditure
£
(36,000)
(32,500)
(228,550)
(297,050)		 As at 31
October
2020
£
-
-
-
As at 31
October
2019
£
-
-
-

All of the above funds were created after various donors and sponsors specified which project they were granting the money for. Hence a restricted fund was created for each project.

28

The Sixteen Notes to the Financial Statements For the year ended 31 October 2020

24 Designated funds

Artistic Projects
Overseas touring
Artistic Projects
Overseas touring		 At as 1
November
2019
£
30,000
30,000
At as 1
November
2018
£
30,000
30,000		 Income
£
-
-
Income
£
-
-		 Expenditure
£
-
-
Expenditure
£
-
-		 Transfers
£
-
-
Transfers
£
-
-		 As at 31
October
2020
£
30,000
30,000
As at 31
October
2019
£
30,000
30,000

Funds have been designated by the Trustees for the following projects:

An overseas touring fund has been established to support ambitious plans for future tours.

25 Analysis of net assets between funds

Fund balances at 31 October 2020 are represented by:

Fixed assets
Net current assets
Total net assets		 Unrestricted
funds
£
73,435
256,597
330,032		 Designated
funds
£
-
30,000
30,000		 Restricted
funds
£
-
-
-		 2020 Total
£
73,435
286,597
360,032

Fund balances at 31 October 2019 are represented by:

Fixed assets
Net current assets
Total net assets		 Unrestricted
funds
£
138,963
206,950
345,913		 Designated
funds
£
-
30,000
30,000		 Restricted
funds
£
-
-		 2019 Total
£
138,963
236,950
375,913

29