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2021-10-31-accounts

Charity Commission registered number: 326917 Company number: 1930741

The Sixteen

(a company limited by guarantee)

Trustees' Report and Consolidated Financial Statements

For the year ended 31 October 2021

The Sixteen Contents For the year ended 31 October 2021

Page No.
Trust Information 1
Trustees’ Report 2 - 7
Independent Auditor’s Report 8 - 11
Consolidated Statement of Financial Activities 12 - 13
Consolidated Balance Sheet 14
Company Balance Sheet 15
Consolidated Cash Flow Statement 16
Notes to the financial statements 17 - 29

THE SIXTEEN (A Company Limited by Guarantee)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2021

The Trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 October 2021.

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)
Sir Ian Blatchford (appointed 29 June 2021)
Lord Briggs of Westbourne
Harry Christophers CBE
Mary Deissler
Lady Anne Heseltine
Naomi Nikolajsen (appointed 29 June 2021)
Keith Parker
Steve Pickett (appointed 29 June 2021)
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
9 Appold Street
London EC2A 2AP
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 2021 (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 (12 in 2021). 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 decisionmaking 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.

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:

A key element in the management of financial risk is the setting of a reserves policy and its regular review by Trustees. A current risk is the knock-on effects of the Covid-19 pandemic on The Sixteen’s finances. Life has been returning to normal and concerts and touring have resumed. However, audience levels have not returned to the same extent as pre-pandemic and box office targets are difficult to meet.

2

THE SIXTEEN (A Company Limited by Guarantee)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2021 (CONTINUED)

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:

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

As with the previous year, the 2020/2021 season was vastly reduced in scope due to the Covid-19 pandemic, with many engagements and outreach and educational activities cancelled or postponed. During the year ended 31 October 2021, The Sixteen gave 27 public performances, made three 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.

3

THE SIXTEEN (A Company Limited by Guarantee)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2021 (CONTINUED)

Achievements and performance (continued)

Of the 27 performances six were in London. We were pleased to maintain our residencies at Kings Place, London, and the Wigmore Hall, and also to continue our long-standing relationship with Cadogan Hall. During the 2020/2021 season we gave four performances at the Wigmore Hall which became a bedrock for the group at a time when many others needed to cut back on performances. In December 2020, our two Christmas performances at the Cadogan Hall were reduced to one because of falling victim to the last-minute move to a change in Covid-19 tier, which meant no live audiences were permitted. The performance went ahead but behind closed doors and was filmed for streaming. With the exception of Saffron Hall, all our other planned Christmas performances were cancelled due to Covid, including performances in Rotterdam and Amsterdam.

The Sixteen’s record label, CORO, released seven albums, which included three new recordings by The Sixteen. 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 around the world.

After a rocky start to the season with many cancelled performances we were delighted to give eight performances of the Choral Pilgrimage tour in June and July 2021. This was entirely thanks to a grant from the Culture Recovery Fund which enabled the group to tour and perform to a socially distanced audience as a result of the reduced box office income being subsidised by the grant. The performances were met with mutual joy by our performers and audiences. The Pilgrimage tour continued in the autumn with a further 13 performances. 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. The concert in Liverpool was filmed and streamed to enable audiences to view The Sixteen’s Choral Pilgrimage because many audience members were nervous about attending concerts in autumn 2021. The requirement for social distancing was no longer in place at this stage but The Sixteen adopted an approach whereby each Choral Pilgrimage venue had 50% of its capacity in a socially distanced layout. The income potential was as a result reduced but it enabled those who were nervous about attending live events to feel a little more secure.

Digital activity in the 2020-2021 season took on a great importance. In the autumn of 2020 when no live performances were possible, The Sixteen produced and released a series of five films (the Choral Odyssey) with different themes and repertoire filmed in interesting locations, performed by The Sixteen and presented by Harry Christophers and leading actor Sir Simon Russell Beale. The historic locations included Hatfield House, Penshurst Place, The Globe, Magdalen College Oxford. It was hugely popular and was purchased and viewed online by c3000 households. The project was an example of how many in the arts world adapted to the pandemic by focusing on entrepreneurial digital activity in order to reach audiences and provide employment for freelance performers. In addition, The Sixteen filmed and released a free 45-minute behind-the-scenes programme providing insight into the 2021 Choral Pilgrimage repertoire, including the Allegri Miserere. The Choral Chihuahua podcast series with Harry Christophers, Eamonn Dougan (The Sixteen’s Associate Conductor) and Robert Hollingworth (Artistic Director of I Fagiolini) continued to release fortnightly episodes with a wide listenership. The episodes focused on ‘all things choral’ with guests. The performers from The Sixteen also continued to provide regular performance and video diary content.

4

THE SIXTEEN (A Company Limited by Guarantee)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2021 (CONTINUED)

Achievements and performance (continued)

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 to build on existing relationships with schools and music hubs around the UK. The Sixteen aims to enhance wellbeing and mental health through its music and during the pandemic it felt as though the comfort and solace of our music was needed more than ever. More of The Sixteen’s outreach work was able to go ahead in 2020-2021 than the previous season but it was still vastly reduced in scope and much of it took place online in the form of choral workshops. However. It was possible to run seven chorister workshops and workshops in the Medway and at Chichester University. The main difficulty was that most of The Sixteen’s residency partners – refugee centres, care homes and schools – were not able to permit entry by outside visitors throughout 2021. We were also able to run some online workshops and to offer free online content.

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 surplus of £68,884 (2020: deficit of £15,881) 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 £67,460 (2020: £36,089). 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, £590,336, donations of £298,192 and CRF grant of £170,000 (total grant is £200,000 with £30,000 recognised in the next financial year). 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 2021 would be £250,000. The actual free reserves at 31 October 2021 were £298,961 of which all were held for unrestricted purposes.

5

THE SIXTEEN (A Company Limited by Guarantee)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2021 (CONTINUED)

Plans for the future

The Sixteen is thrilled to be back to pre-pandemic operational levels. The team has returned to full capacity and concert, recording and participation programme planning is based on a pre-pandemic schedule. The team has adopted a hybrid model of working with some days worked remotely from home and others in the office. We recently launched The Sixteen’s new website with enhanced digital capability and are planning a programme of digital activity to complement live performance and to seek ways of engaging with our audience, as well as offering those unable to attend the chance to experience The Sixteen digitally.

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 plan to film our annual Choral Pilgrimage programme at a different location each season which will be released online for as many to enjoy as possible.

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. 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 ran courses in 2021 concurrently for cohorts 9, 10 and 11, because of needing to reschedule 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 and the government with its Cultural Recovery Fund, who support the work of The Sixteen. We are heavily indebted to them all.

FIXED ASSETS

The movements in fixed assets during the year are set out in notes 14 and 16 to the accounts.

AUDITORS

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

6

THE SIXTEEN (A Company Limited by Guarantee)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2021 (CONTINUED)

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors of The Sixteen) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

BY ORDER OF THE BOARD

Type text here ........................................................ Robin Barda (Chairman) ………………………………… 2022 27 July

7

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 2021 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

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

8

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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.

9

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 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:

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.

10

Independent Auditors Report to the Members and Trustees of The Sixteen

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

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

Date: 27 July 2022 James Cross (Senior Statutory Auditor) 9 Appold Street for and on behalf of Moore Kingston Smith LLP, London Statutory Auditor EC2A 2AP

11

The Sixteen

Consolidated Statement of Financial Activities

For the year ended 31 October 2021

Note
£
Income
Donations and legacies
2
333,192
Other trading activities
12
261,380
Investment income
667
Income from charitable activities
3
422,836
Other income
4
34,257
Total
1,052,332
Expenditure
Raising funds:
Fundraising costs
6
60,004
Trading expenditure
7
214,707
8
753,427
Total
1,028,138
Net income/(expenditure)
24,194
Gains on investments
17
11,649
Taxation credit
33,041
Net movement in funds for the year
5
68,884
Funds at 1 November 2020
24
360,032
Funds at 31 October 2021
24
428,916
Expenditure on charitable
activities
Unrestricted
Funds		 £
135,000
167,500
302,500
302,500
302,500
-
-
-
-
-
-

Restricted
Funds		 £
468,192
261,380
667
590,336
34,257
1,354,832
60,004
214,707
1,055,927
1,330,638
24,194
11,649
33,041
68,884
360,032
428,916
Total Funds
2021		 £
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

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 £1,174,281 (2020: £951,692) and total expenditure was £1,143,557 (2020: £977,698) giving a net surplus for the year of £30,724 (2020: deficit of £26,006).

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 income/(expenditure)
Gains on investments
18
Taxation credit
Net movement in funds for the year
Funds at 1 November 2019
27
Funds at 31 October 2020
27
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

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

13

The Sixteen Consolidated Balance Sheet As at 31 October 2021

Note
Fixed assets
Tangible fixed assets
14
Intangible fixed asstes
16
Listed investments
17
Current assets
Stock
18
Debtors
19
Cash at bank and in hand
Creditors:Amounts falling due
20
within one year
Net current assets
Total assets less current liabilities
Net assets
Funds
Unrestricted funds
Designated funds
25
Restricted funds
24
Total funds		 2021
£
6,226
17,200
78,292
50,912
153,620
316,217
520,749
(193,550)		 2021
£
101,718
327,199
428,917
428,917
398,916
30,000
-
428,916		 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

These accounts were approved and authorised for issue by the Board on ……………….. and signed on 27 July 2022 their behalf by:

……………………………………..

Robin Barda Chairman

14

The Sixteen Company Balance Sheet As at 31 October 2021

Note
Fixed assets
Tangible fixed assets
14
Intangible fixed assets
16
Investment in subsidiary
15
Listed investments
17
Current assets
Debtors
19
Cash at bank and in hand
Creditors:Amounts falling due
20
within one year
Net current assets
Total assets less current liabilities
Net assets
Funds
Unrestricted funds
Designated funds
25
Restricted funds
24
Total funds		 2021
£
5,674
17,200
1
78,292
141,089
261,591
402,680
(152,012)		 2021
£
101,167
250,668
351,835
351,835
321,835
30,000
-
351,835		 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

These accounts were approved and authorised for issue by the Board on ……………….. and signed on their behalf by:

……………………………………..

Robin Barda Chairman

15

The Sixteen Consolidated Statement of Cash Flows For the year ended 31 October 2021

Note
2021
£
Cash flows from operating activities
Cash flows from investing activities
Purchase of intangible fixed assets
16
(17,200)
Sale of investments
Gain on investments
17
(11,649)
Purchase of tangible fixed assets
14a
(583)
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		 2021
£
24,002
(29,432)
(5,430)
321,647
316,217
2021
£
68,884
1,149
2,113
(23,162)
(24,982)
24,002		 2020
£
-
65,252
(2,280)
(2,027)		 2020
£
(21,239)
60,945
39,706
281,941
321,647
2020
£
(15,881)
4,583
(2,425)
193,798
(201,314)
(21,239)

16

The Sixteen Notes to the Financial Statements For the year ended 31 October 2021

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. As part of the going concern review the trustees prepared budget forecasts to October 2023, 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 noncharitable trading activities separately from those of the Charity. A summary profit and loss account and 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.

17

The Sixteen Notes to the Financial Statements For the year ended 31 October 2021

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) Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:

Website development

33% straight line per annum

g) Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

h) 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.

i) Cash and Cash Equivalents

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

18

The Sixteen Notes to the Financial Statements For the year ended 31 October 2021

1 Accounting policies (continued)

j) 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.

k) 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.

l) Stock

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

m) Post retirement benefits

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

n) Unrestricted funds

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

o) Designated funds

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

p) Restricted funds

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

q) 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.

19

The Sixteen Notes to the Financial Statements For the year ended 31 October 2021

2 Donations and legacies

Donations
Gift aid
Grants and corporate sponsorship
Grant, Trust and Foundation funding
Total
3
Income from charitable activities
Choral Performances including recordings
Educational projects
Total
4
Other income
Coronavirus job retention scheme income
Miscellaneous income
All other income in 2021 and in 2020 was unrestricted.		 2021
£
179,769
21,423
189,500
77,500
468,192
2021
£
422,836
167,500
590,336
2021
£
33,500
757
34,257		 2020
£
171,398
33,880
80,500
67,500
353,278
2020
£
423,140
107,500
530,640
2020
£
37,620
1,134
38,754

5 Net movement in funds

This is stated after charging:

Auditor's remuneration
Depreciation on fixed assets		 2021
2020
£
£
9,710
8,086
1,149
4,583
Group		 2021
2020
£
£
5,575
5,176
838
-
Company

20

The Sixteen Notes to the Financial Statements For the year ended 31 October 2021

6 Fundraising costs

Fundraising costs
Total 2021
Total 2020
7
Trading expenditure
Cost of fundraising trading
Other fundraising costs
Total 2021
Total 2020		 Activities
Undertaken
Directly
£
-
-
-
Activities
Undertaken
Directly
£
193,922
-
193,922
202,855		 Support
costs
(Note 9)
£
60,004
60,004
64,788
Support
costs
(Note 9)
£
-
20,785
20,785
17,220		 Total 2021
£
60,004
60,004
64,788
Total 2021
£
193,922
20,785
214,707
220,075

8 Charitable activities

Choral performances including recordings and educational projects.

Total 2021
Total 2020		 Activities
£
760,388
586,347		 Support
£
295,539
309,343		 Total 2021
£
1,055,927
895,690

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

21

The Sixteen Notes to the Financial Statements For the year ended 31 October 2021

9 Support costs

Accountancy and
professional
i
General marketing
Total
Total
General office
Finance costs
Information
technology
Human resources
Communication
costs
Governance costs
(note 10)
Communication
costs
Accountancy and
professional
i
General marketing
General office
Finance costs
Information
technology
Human resources
Governance costs
(note 10)		 Cost of
raising
funds
£
1,377
-
-
-
58,627
-
-
-
60,004
Cost of
raising
funds
£
1,228
-
-
-
63,540
-
-
20
64,788		 Trading
expenditure
£
1,622
1,444
876
2,203
8,225
1,454
3,181
1,780
20,785
Trading
expenditure
£
1,813
1,191
718
1,041
7,000
1,014
2,707
1,736
17,220		 Choral
Performances &
Recording
£
8,623
5,784
8,730
8,343
118,261
5,822
12,736
13,883
182,182
Choral
Performances &
Recording
£
11,741
7,451
4,524
7,113
135,159
6,358
16,938
11,507
200,791		 Educational
Projects
£
4,809
2,482
1,587
3,673
92,088
2,563
5,468
687
113,357
Educational
Projects
£
3,917
1,775
1,070
1,528
93,830
1,523
4,034
875
108,552		 Total 2021
£
16,431
9,710
11,193
14,219
277,201
9,839
21,385
16,350
376,328
Total 2020
£
18,699
10,417
6,312
9,682
299,529
8,895
23,679
14,138
391,351

10 Governance Costs

Total
Audit Fee
Board meeting costs
Trustee training
Trustee recruitment		 2021
£
9,710
-
-
-
9,710		 2020
£
9,425
-
-
992
10,417

22

The Sixteen Notes to the Financial Statements For the year ended 31 October 2021

11 Employees

a) Staff costs
Wages and salaries
Social security costs
Pension costs		 2021
2020
£
£
283,505
316,684
23,046
27,095
8,875
12,005
315,426
355,784
Group		 2021
2020
£
£
246,538
263,303
19,683
22,325
7,499
10,220
273,720
295,848
Company

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

Office and management 2021
2020
8
10
Group		 2021
2020
7
8
Company

There was one employee who earned over £60,000 in 2021 (2020: one) with remuneration in the bracket £60,000 - £69,999.

The total compensation paid to key management personnel in the group amounted to £193,615 (2020: £204,942). 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 (2020: 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 taxable 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
Other operating income
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		 2021
£
257,993
(193,346)
2
(576)
3,387
67,460
-
67,460
2021
£
551
-
142,122
(41,538)
(24,050)
77,085		 2020
£
238,936
(202,105)
8
(750)
-
36,089
-
36,089
2020
£
279
-
118,753
(35,064)
(38,254)
45,714

23

The Sixteen Notes to the Financial Statements For the year ended 31 October 2021

12 Income earned from other activities (continued)

Summary Statement of Changes in Equity
Balance at 31 October 2020
Total comprehensive income
Distributions to The Sixteen
Balance at 31 October 2021		 £
Share capital
1
-
-
1		 £
Profit and
Loss
45,713
67,460
(36,089)
77,084
2021		 £
Total
45,714
67,460
(36,089)
77,085

13 Trustees' remuneration

No trustees received any remuneration in the year in their capacity as trustees (see note 23 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 2020
Additions
At 31 October 2021
Depreciation
At 1 November 2020
Charge for the year
At 31 October 2021
Net Book Value
At 31 October 2021
At 1 November 2020		 Library
£
5,000
-
5,000
-
-
-
5,000
5,000		 Office
Equipment
£
33,243
583
33,826
31,451
1,149
32,600
1,226
1,792		 2021
£
38,243
583
38,826
31,451
1,149
32,600
6,226
6,792

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.

24

The Sixteen

Notes to the Financial Statements For the year ended 31 October 2021

14 Tangible Fixed Assets Group and Company (continued)

b) Company Tangible fixed assets

Library
£
Cost
At 1 November 2020
5,000
Additions
-
At 31 October 2021
5,000
Depreciation
At 1 November 2020
-
Charge for the year
-
At 31 October 2021
-
Net Book Value
At 31 October 2021
5,000
At 1 November 2020
5,000
15 Investments in subsidiaries and unlisted investments
a) Company
Cost brought forward
Additions
Cost carried forward		 Office
Equipment
£
31,505
-
31,505
29,993
838
30,831
674
1,512		 2020
£
36,505
-
36,505
29,993
838
30,831
5,674
6,512
2021
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.

25

The Sixteen Notes to the Financial Statements For the year ended 31 October 2021

16 Intangible Fixed Assets Group and Company

a) Group Intangible fixed assets

Cost
At 1 November 2020
Additions
At 31 October 2021
Amortisation
At 1 November 2020
Charge for the year
At 31 October 2021
Net Book Value
At 31 October 2021
At 1 November 2020
b) Company Intangible fixed assets
Cost
At 1 November 2020
Additions
At 31 October 2021
Amortisation
At 1 November 2020
Charge for the year
At 31 October 2021
Net Book Value
At 31 October 2021
At 1 November 2020		 Website
development
£
-
17,200
17,200
-
-
-
17,200
-
Website
development
£
-
17,200
17,200
-
-
-
17,200
-		 2021
£
-
17,200
17,200
-
-
-
17,200
-
2021
£
-
17,200
17,200
-
-
-
17,200
-

26

The Sixteen Notes to the Financial Statements For the year ended 31 October 2021

17 Listed investments - Group and Company

Market Value at 1 November 2020
Sale of shares
Gain on revaluation
Market Value at 31 October 2021		 2021
£
66,643
-
11,649
78,292
18 Stock
2021
2020
£
£
Compact discs
50,912
53,025
19 Debtors
2021
2020
£
£
Trade debtors
75,755
62,783
Prepayments and accrued income
48,218
35,961
Other debtors
29,647
31,714
Amounts due from Sixteen Productions
-
-
Loan with Sixteen Productions
-
-
153,620
130,458
Group
Group		 2021
2020
£
£
-
-
2021
2020
£
£
41,790
37,971
46,297
33,799
28,952
31,018
-
-
24,050
38,254
141,089
141,042
Company
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.

20 Creditors
Trade creditors
Other taxes and social security costs
Accruals
Deferred income
Other creditors		 2021
2020
£
£
98,728
56,283
4,434
3,583
71,619
39,856
16,916
117,370
1,853
1,441
193,550
218,533
Group		 2021
2020
£
£
87,076
46,239
2,391
2,433
44,329
16,528
16,916
117,370
1,300
899
152,012
183,469
Company

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		 2021
£
117,370
(117,370)
16,916
16,916
Group and		 2020
£
107,313
(107,313)
117,370
117,370
Company

27

The Sixteen Notes to the Financial Statements For the year ended 31 October 2021

21 Company Limited by Guarantee

The company is limited by guarantee, having no share capital. At 31 October 2021 two members have each undertaken to contribute in the event of the winding-up of the company, a sum not exceeding £1 per member.

22 Financial commitments

As at 31 October 2021 the company had capital commitments totalling £25,800 (2020: £Nil).

23 Related party transactions

During the year conductor's fees totalling £87,550 (2020: £89,950) 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 2021 £6,800 (2020: £12,000) was due to Harry Christophers Limited.

24 Restricted funds

Choral Pilgrimage 2021 fund
Educational Chorister fund
Genesis Foundation Covid-19
Choral Pilgrimage 2020 fund
UK choir and orchestral tour fund
Educational Chorister fund		 As at 1
November
2020
£
-
-
As at 1
November
2019
£
-
-
-
-		 Income
£
120,000
167,500
15,000
302,500
Income
£
80,500
17,500
107,500
205,500		 Expenditure
£
(120,000)
(167,500)
(15,000)
(302,500)
Expenditure
£
(80,500)
(17,500)
(107,500)
(205,500)		 As at 31
October
2021
£
-
-
As at 31
October
2020
£
-
-
-

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 2021

25 Designated funds

Artistic Projects
Overseas touring
Artistic Projects
Overseas touring		 At as 1
November
2020
£

30,000
30,000
At as 1
November
2019
£

30,000
30,000		 Income
£
-
-
Income
£
-
-		 Expenditure
£
-
-
Expenditure
£
-
-		 Transfers
£
-
-
Transfers
£
-
-		 As at 31
October
2021
£
30,000
30,000
As at 31
October
2020
£
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.

26 Analysis of net assets between funds

Fund balances at 31 October 2021 are represented by:

Fixed assets
Current assets/(liabilities)
Total net assets/(liabilities)		 Unrestricted
funds
£
101,718
297,198
398,916		 Designated
funds
£
-
30,000
30,000		 Restricted
funds
£
-
-
-		 2021 Total
£
101,718
327,198
428,916

Fund balances at 31 October 2020 are represented by:

Fixed assets
Current assets/(liabilities)
Total net assets/(liabilities)		 Unrestricted
funds
£
73,435
256,597
330,032		 Designated
funds
£
-
30,000
30,000		 Restricted
funds
£
-
-
-		 2020 Total
£
73,435
286,597
360,032

29