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2022-10-31-accounts

Charity Commission registered number: 326917 Company number: 01930741

The Sixteen

(a company limited by guarantee)

Trustees' Report and Consolidated Financial Statements

For the year ended 31 October 2022

The Sixteen Contents For the year ended 31 October 2022

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 - 30

THE SIXTEEN (A Company Limited by Guarantee)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2022

The Trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 October 2022.

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 Lord Briggs of Westbourne Olivia Carrington (appointed March 2023) Harry Christophers CBE Mary Deissler Lady Heseltine Naomi Nikolajsen Keith Parker Steve Pickett Richard Price Adam Singer (resigned June 2022) 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 2022 (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 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.

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

2

THE SIXTEEN (A Company Limited by Guarantee)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2022 (CONTINUED)

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.

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 five 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; learning and participation activities; the training of the next generation of choral ensemble singers through Genesis Sixteen. The concerts which The Sixteen presents seek to combine performances with educational events, for example Choral Workshops and Schools matinees.

The Sixteen’s learning and participation programme aims to:

3

THE SIXTEEN (A Company Limited by Guarantee)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2022 (CONTINUED)

Achievements and performance

Unlike the previous two seasons, 2021/2022 was for the first time since the pandemic without restriction, in terms of lockdowns and social distancing. However, it was widely acknowledged across the industry that audiences were slow to return to live events, in what was felt to be a combination of continued nervousness amongst some, and quite simply a change in habit since the pandemic. As a result, box office figures from own-promotion concerts were lower than in previous seasons. So far, the current season (22/23), has seen an uplift in audience numbers in what is cautiously hoped to be a return to pre-pandemic figures. There was a corresponding reticence last season for promoters (both British and overseas) to book The Sixteen, due to nervousness amongst the promoters at low audience figures and as a result, the high financial risk involved in booking the ensemble. This resulted in a lower number of external bookings in comparison to pre-pandemic years. Bookings for overseas engagements stalled in 2021/2022 for similar reasons and was compounded by post-Brexit conditions for UK ensembles and musicians performing in certain EU territories.

During the year ended 31 October 2022, The Sixteen gave 56 public performances, made two recordings, held various learning and participatory activities online and significantly developed their digital activity. In addition, they collaborated on a Learning and Participation project with the Medway and Chichester University.

Of the 56 performances, 13 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. We were also delighted to be asked to perform within a stunning open-air installation outside Tate Modern in October along with a diverse range of other performing groups, attracting a broad audience. A major initiative for audience and artistic development for The Sixteen was our All the ends of the World project, which saw The Sixteen collaborate with violinist Lizzie Ball, and videographer Heather Britton, who created a film focusing on climate change. It was an intense and beautiful immersive experience at Southwark and Rochester Cathedrals, in particular at Southwark where the performance coincided with the Gaia Globe suspended in the middle of the Nave.

The Sixteen’s record label, CORO, released six albums, which included four 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. The Sixteen’s Choral Pilgrimage performance from York Minster was relayed on Radio 3.

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. 25 performances were given between March and October 2022.

Learning and participation has a central position within The Sixteen’s activity and is crucial 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. 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. In

4

2021/2022, The Sixteen’s Learning and Participation programme reached a wider demographic and undertook more sessions than ever before. Outreach residencies were carried out in Manchester, Truro, Leeds/Bradford and the Medway and the team also visited Leeds/Sheffield over the course of the year. Participants ranged from young people aged 5-18 years old in state education, 18–24-year-old musicians, choristers, amateur singers, people affected by homelessness, refugees, adults at risk of isolation, adults on a rehabilitation ward in a hospital after suffering a stroke and adults in assisted living or Care Homes. Inspirational singing days, composition workshops, song circles with community groups and in care homes, focused chorister sessions, and workshops for amateur singers, all inspired by the Choral Pilgrimage, engaged members of the public at every level. New partnerships were forged with local music hubs, state schools, and community groups to reach those who would not normally have access to such high-level music making or experience professional choral music. This meant that participants came from more diverse backgrounds than in previous learning and participation work.

Chorister workshops in Cathedrals and Schools across the country gave young singers the chance to learn from members of The Sixteen’s main choir, developing their knowledge of choral music as well as gaining an insight into the life of a professional singer.

“From the moment The Sixteen team arrived, they infected the minds of 11-16-year-olds with their energy and enthusiasm. I have rarely seen so many young people so completely engaged and so fully committed to participation. It was truly inspiring to watch. Without doubt, The Sixteen team planted seeds in young minds today and we can only stand back in awe and watch as those seeds germinate and grow.”

Graham Cotgreave, Community Music Partner

The Sixteen continues to champion the next generation of musicians, encouraging not only future practitioners but also audience members, and achieves this with its young artist training programme, Genesis Sixteen. Established in 2011, this is a programme that each year trains 22 young singers (and since 2014, a Conducting Scholar), and is entirely funded by the Genesis Foundation. This innovative project aims to encourage young singers to take up a professional career in choral singing.

“From the word go you are plunged into an immensely vibrant atmosphere, encouraged to strive for the very best whilst surrounded by an incredibly supportive network. I can honestly say this has been one of the most rewarding musical experiences of my life.” Natasha Cutler, Alto, Cohort 2

The Sixteen believes that everyone can benefit from experiencing and creating music, and its major ambition and new committed focus is to diversify the talent pipeline of young people entering the choral profession, and ultimately, increase industry representation from currently underrepresented groups. It addresses this partly through its Learning & Participation programme, which in 2022 reached over 3,600 participants, but plans are under development – subject to funding – for increased and focused learning and participation to help achieve this aspiration.

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.

5

THE SIXTEEN (A Company Limited by Guarantee)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2022 (CONTINUED)

Financial Review

The end of the year saw a deficit of £98,922 (2021: surplus of £68,884) 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 £59,097 (2021: £67,460). 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, £908,995, and donations and legacies of £341,224. The Trustees were 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 2022 would be £250,000. The actual free reserves at 31 October 2022 were £257,067 of which all were held for unrestricted purposes.

Plans for the future

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 groundbreaking 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. During the 2021/2022 season we ran cohorts 10, 11 and 12 concurrently because of rescheduled courses which had been postponed during the pandemic.

6

Finally, we would like to acknowledge the great loyalty and support of the generous individuals, trusts and foundations, corporates and Arts Council England, who support the work of The Sixteen. We are heavily indebted to them all.

Fundraising

The Sixteen raises funds to support the charitable activities of the organisation. A Development Director and Manager are employed by the group to raise funds in the areas of: ACE, trusts and foundations, individuals and corporates. The fundraising, and those employed by the charity to undertake fundraising activity, was carried out in line with The Sixteen’s policies. There were no complaints received by the charity regarding fundraising activities.

Safeguarding

The Sixteen has a clear policy on working with children and vulnerable people. All those undertaking work on behalf of The Sixteen with children or vulnerable people are made aware of The Sixteen’s policy on safeguarding. The Sixteen undertakes the necessary checks to determine suitability of anyone working with participants that fall within these categories.

FIXED ASSETS

The movements in fixed assets during the year are set out in notes 14 to 17 to the accounts.

AUDITORS

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

7

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

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........................................................ Robin Barda (Chairman) ………………………………… 2023 27 July

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 2022 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.

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 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.

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

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.

11

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 2023

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

9 Appold Street London EC2A 2AP

12

The Sixteen Consolidated Statement of Financial Activities For the year ended 31 October 2022

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)
(Loss)/gains on investments
17
Taxation credit
Net movement in funds for the year
5
Funds at 1 November 2021
27
Funds at 31 October 2022
27
Expenditure on charitable
activities		 £
254,724
255,735
529
698,995
1,013
1,210,996
58,463
196,174
1,050,404
1,305,041
(94,045)
(4,877)
-
(98,922)
428,916
329,994
Unrestricted
Funds		 £
86,500
210,000
296,500
296,500
296,500
-
-
-
-
-
-

Restricted
Funds		 £
341,224
255,735
529
908,995
1,013
1,507,496
58,463
196,174
1,346,904
1,601,541
(94,045)
(4,877)
-
(98,922)
428,916
329,994
Total Funds
2022		 £
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

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 on investments) of the parent charity amounted to £1,314,337 (2021: £1,174,281) and total expenditure was £1,404,898 (2021: £1,143,557) giving a net deficit for the year of £90,561 (2021: surplus of £30,724).

13

The Sixteen Consolidated Statement of Financial Activities For the year ended 31 October 2021

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
17
Taxation credit
Net movement in funds for the year
Funds at 1 November 2020
27
Funds at 31 October 2021
27
Expenditure on charitable activities		 £
333,192
261,380
667
422,836
34,257
1,052,332
60,004
214,707
753,427
1,028,138
24,194
11,649
33,041
68,884
360,032
428,916
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

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 2022

Note
Fixed assets
Tangible fixed assets
14
Intangible fixed assets
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
26
Restricted funds
25
Total funds		 2022
£
7,094
35,833
73,415
40,867
166,108
220,048
427,023
(213,371)		 2022
£
116,342
213,652
329,994
329,994
299,994
30,000
-
329,994		 2021
£
6,226
17,200
78,292
50,912
153,619
316,217
520,748
(193,550)		 2021
£
101,718
327,198
428,916
428,916
398,916
30,000
-
428,916

These accounts were approved and authorised for issue by the Board on ……………….. and signed on 27 July 2023 their behalf by:

……………………………………..

Robin Barda Chairman

15

The Sixteen Company Balance Sheet As at 31 October 2022

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
26
Restricted funds
25
Total funds		 2022
£
6,736
35,833
1
73,415
165,722
157,758
323,480
(178,191)		 2022
£
115,985
145,289
261,274
261,274
231,274
30,000
-
261,274		 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

These accounts were approved and authorised for issue by the Board on ……………….. and signed on 27 July 2023 their behalf by:

……………………………………..

Robin Barda Chairman

16

The Sixteen Consolidated Statement of Cash Flows For the year ended 31 October 2022

Note
2022
£
Cash flows from operating activities
Cash flows from investing activities
Purchase of intangible fixed assets
16
(25,800)
Purchase of tangible fixed assets
14a
(2,244)
Change in cash and cash equivalents
Net cash provided by operating activities
Activities
Net (expenditure)/income for the year
Adjustments for:
Depreciation charges
Amortisation charges
Loss/(gains) on Investments
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		 2022
£
(68,125)
(28,044)
(96,169)
316,217
220,048
2022
£
(98,922)
1,376
7,167
4,877
10,045
(12,489)
19,821
(68,125)		 2021
£
(17,200)
(583)		 2021
£
12,353
(17,783)
(5,430)
321,647
316,217
2021
£
68,884
1,149
-
(11,649)
2,113
(23,162)
(24,982)
12,353

17

The Sixteen Notes to the Financial Statements For the year ended 31 October 2022

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 July 2024, 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.

18

The Sixteen Notes to the Financial Statements For the year ended 31 October 2022

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.

19

The Sixteen Notes to the Financial Statements For the year ended 31 October 2022

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. The following are key areas of estimation uncertainty:

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 2022

2 Donations and legacies

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |£|£| |Donations|231,577|179,769| |Gift aid|19,147|21,423| |Grants and corporate sponsorship|34,000|189,500| |Grant, Trust and Foundation funding|56,500|77,500| |Total|341,224|468,192| |3|Income from charitable activities| |2022|2021| |£|£| |Choral Performances including recordings|718,995|422,836| |Educational projects|190,000|167,500| |Total|908,995|590,336| |4|Other income| |2022|2021| |£|£| |-| |Coronavirus job retention scheme income|33,500| |Miscellaneous income|1,013|757| |1,013|34,257| |All other income in 2022 and in 2021 was unrestricted.| |5|Net movement in funds| |This is stated after charging:|

----- End of picture text -----

----- Start of picture text -----
|||||| |---|---|---|---|---| |Group|Company| |2022|2021|2022|2021| |£|£|£|£| |Auditor's remuneration|10,700|9,710|7,250|6,575| |Amortisation on intangible assets|7,167|-|7,167|-| |Depreciation on fixed assets|1,376|1,149|1,182|838|

----- End of picture text -----

20

The Sixteen Notes to the Financial Statements For the year ended 31 October 2022

6 Fundraising costs

Activities
£
Fundraising costs
-
Total 2022
-
Total 2021
-
7
Trading expenditure
Activities
£
Trading costs
180,026
Total 2022
180,026
Total 2021
193,923
8
Charitable activities
Choral performances including recordings and educational projects.
Activities
£
Total 2022
900,764
Total 2021
679,599		 Support
£
58,463
58,463
60,004
Support
£
16,148
16,148
20,784
Support
£
446,140
376,328		 Total 2022
£
58,463
58,463
60,004
Total 2022
£
196,174
196,174
214,707
Total 2022
£
1,346,904
1,055,927

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

20

The Sixteen Notes to the Financial Statements For the year ended 31 October 2022

9 Support costs

Communication
costs
Accountancy and
professional
i
General marketing
General office
Finance costs
Information
technology
Human resources
Governance costs
(note 10)
Accountancy and
professional
i
General marketing
Total
Total
General office
Finance costs
Information
technology
Human resources
Communication
costs
Governance costs
(note 10)		 Cost of
raising
funds
£
3,231
-
-
-
55,192
-
-
40
58,463
Cost of
raising
funds
£
1,377
-
-
-
58,627
-
-
60,004		 Trading
expenditure
£
1,990
1,016
717
1,153
8,231
969
1,958
113
16,147
Trading
expenditure
£
1,622
1,444
876
2,203
8,225
1,454
3,181
1,780
20,785		 Choral
Performances &
Recording
£
19,071
7,383
12,142
8,379
139,384
7,037
14,225
48,671
256,292
Choral
Performances &
Recording
£
8,623
5,784
8,730
8,343
118,261
5,822
12,736
13,883
182,182		 Educational
Projects
£
8,996
2,301
1,620
2,700
92,187
2,194
4,434
806
115,238
Educational
Projects
£
4,809
2,482
1,587
3,673
92,088
2,563
5,468
687
113,357		 Total 2022
£
33,288
10,700
14,479
12,232
294,994
10,200
20,617
49,630
446,140
Total 2021
£
16,431
9,710
11,193
14,219
277,201
9,839
21,385
16,350
376,328

10 Governance Costs

Total
Audit Fee
Board meeting costs
Trustee training
Trustee recruitment		 2022
£
10,700
-
-
-
10,700		 2021
£
9,710
-
-
-
9,710

23

The Sixteen Notes to the Financial Statements For the year ended 31 October 2022

11 Employees

a) Staff costs
Wages and salaries
Social security costs
Pension costs		 2022
2021
£
£
293,675
283,505
24,764
23,046
8,888
8,875
327,327
315,426
Group		 2022
2021
£
£
251,664
246,538
20,712
19,683
7,512
7,499
279,888
273,720
Company

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

Office and management 2022
2021
9
8
Group		 2022
2021
8
7
Company

There was one employee who earned over £60,000 in 2022 (2021: one) with remuneration in the bracket £60,000 - £69,999.

The total compensation paid to key management personnel in the group amounted to £248,942 (2021: £193,615). 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 24. Total key management personnel consists of three (2021: 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 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		 2022
£
255,735
(196,174)
7
(471)
-
59,097
2022
£
357
-
130,990
(35,179)
(27,446)
68,722		 2021
£
257,993
(193,346)
2
(576)
3,387
67,460
2021
£
551
-
142,122
(41,538)
(24,050)
77,085

24

The Sixteen Notes to the Financial Statements For the year ended 31 October 2022

12 Income earned from other activities (continued)

Summary Statement of Changes in Equity
Balance at 31 October 2021
Total comprehensive income
Distributions to The Sixteen
Balance at 31 October 2022		 £
Share capital
1
-
-
1		 £
Profit and
Loss
77,084
59,097
(67,460)
68,721
2022		 £
Total
77,085
59,097
(67,460)
68,722

13 Trustees' remuneration

No trustees received any remuneration in the year in their capacity as trustees (see note 24 for remuneration paid to trustees for other services). One trustee was reimbursed £69 for travel during the current year (2021: £nil).

14 Tangible Fixed Assets Group and Company

a) Group Tangible fixed assets

Cost
At 1 November 2021
Additions
At 31 October 2022
Depreciation
At 1 November 2021
Charge for the year
At 31 October 2022
Net Book Value
At 31 October 2022
At 1 November 2021		 Library
£
5,000
-
5,000
-
-
-
5,000
5,000		 Office
Equipment
£
33,826
2,244
36,070
32,600
1,376
33,976
2,094
1,226		 2022
£
38,826
2,244
41,070
32,600
1,376
33,976
7,094
6,226

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 2022

14 Tangible Fixed Assets Group and Company (continued)

b) Company Tangible fixed assets

Library
£
Cost
At 1 November 2021
5,000
Additions
-
At 31 October 2022
5,000
Depreciation
At 1 November 2021
-
Charge for the year
-
At 31 October 2022
-
Net Book Value
At 31 October 2022
5,000
At 1 November 2021
5,000
15 Investments in subsidiaries and unlisted investments
a) Company
Cost brought forward
Additions
Cost carried forward		 Office
Equipment
£
31,505
2,244
33,749
30,831
1,182
32,013
1,736
674		 2022
£
36,505
2,244
38,749
30,831
1,182
32,013
6,736
5,674
2022
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.

16 Intangible Fixed Assets Group and Company

Cost
At 1 November 2021
Additions
At 31 October 2022
Amortisation
At 1 November 2021
Charge for the year
At 31 October 2022
Net Book Value
At 31 October 2022
At 1 November 2021		 Website
£
17,200
25,800
43,000
-
7,167
7,167
35,833
17,200		 2022
£
17,200
25,800
43,000
-
7,167
7,167
35,833
17,200

26

The Sixteen Notes to the Financial Statements For the year ended 31 October 2022

17 Listed investments - Group and Company

Market Value at 1 November 2021
Sale of shares
Gain on revaluation
Market Value at 31 October 2022		 2022
£
78,292
-
(4,877)
73,415
18 Stock
2022
2021
£
£
Compact discs
40,867
50,912
19 Debtors
2022
2021
£
£
Trade debtors
140,207
75,755
Prepayments and accrued income
15,704
48,218
Other debtors
10,197
29,646
Amounts due from Sixteen Productions
-
-
Loan with Sixteen Productions
-
-
166,108
153,619
Group
Group		 2022
2021
£
£
-
-
2022
2021
£
£
114,972
41,790
13,802
46,297
9,502
28,952
-
-
27,446
24,050
165,722
141,089
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		 2022
2021
£
£
140,393
98,728
10,536
4,434
58,081
71,619
-
16,916
4,361
1,853
213,371
193,550
Group		 2022
2021
£
£
124,101
87,076
10,231
2,391
40,566
44,329
-
16,916
3,293
1,300
178,191
152,012
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		 2022
£
16,916
(16,916)
-
-
Group and		 2021
£
117,370
(117,370)
16,916
16,916
Company

27

The Sixteen Notes to the Financial Statements For the year ended 31 October 2022

21 Company Limited by Guarantee

The company is limited by guarantee, having no share capital. At 31 October 2022 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 2022 the company had capital commitments totalling £nil (2021: £25,800).

23 Operating lease commitments

As at 31 March 2023 the total of the company's future minimum lease payments under non-cancellable operating leases was:

Amounts payable
Within 1 year
Between 1 and 5 years
Total		 2023
£
9,181
-
9,181		 2022
£
-
-
-

24 Related party transactions

During the year conductor's fees and Animateur Workshop Leader Fees totalling £144,095 (2021: £87,550) 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 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 2022 £4,800 (2021: £6,799) was due to Harry Christophers Limited.

28

The Sixteen Notes to the Financial Statements For the year ended 31 October 2022

25 Restricted funds

Choral Pilgrimage 2022 fund
Educational Chorister fund
Other Restricted Funds
Choral Pilgrimage 2021 fund
Educational Chorister fund
Other Restricted Funds		 £
-
-
£
-
-
-
-
As at 1
November
2021
As at 1
November
2020		 £
50,000
210,000
36,500
296,500
£
120,000
167,500
15,000
302,500
Income
Income		 £
(50,000)
(210,000)
(36,500)
(296,500)
£
(120,000)
(167,500)
(15,000)
(302,500)
Expenditure
Expenditure		 £
-
-
£
-
-
-
As at 31
October
2022
As at 31
October
2021

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.

26 Designated funds

Artistic Projects
Overseas touring
Artistic Projects
Overseas touring		 At as 1
November
2021
£

30,000
30,000
At as 1
November
2020
£

30,000
30,000		 Income
£
-
-
Income
£
-
-		 Expenditure
£
-
-
Expenditure
£
-
-		 Transfers
£
-
-
Transfers
£
-
-		 As at 31
October
2022
£
30,000
30,000
As at 31
October
2021
£
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.

29

27 Analysis of net assets between funds

Fund balances at 31 October 2022 are represented by:

Unrestricted
funds
Designated
funds
£
£
Fixed assets
116,342
-
Current assets/(liabilities)
183,652
30,000
Total net assets/(liabilities)
299,994
30,000
Fund balances at 31 October 2021 are represented by:
Unrestricted
funds
Designated
funds
£
£
Fixed assets
101,718
-
Current assets/(liabilities)
297,198
30,000
Total net assets/(liabilities)
398,916
30,000		 Restricted
funds
£
-
-
-
Restricted
funds
£
-
-
-		 2022 Total
£
116,342
213,652
329,994
2021 Total
£
101,718
327,198
428,916

30