## **BRITISH YOUTH OPERA**
**(Company Limited by Guarantee, not having a share capital) (Registered Charity)**
## **REPORT AND FINANCIAL STATEMENTS**
**YEAR ENDED 31[st] DECEMBER 2020**
**Charity No: 327927 (England and Wales) Company No: 02322037**
## **BRITISH YOUTH OPERA**
## **Contents**
||**Page**|
|---|---|
|Trustees' report|3|
|Report of the auditors|9|
|Statement of financial activities|13|
|Balance sheet|14|
|Cash flow statement|15|
|Notes to the financial statements|16|
**BRITISH YOUTH OPERA**
## **Charity information**
The Trustees present their annual report and audited accounts for the year ended 31 December 2020.
The Trustees are directors of the Company for the purposes of the Companies Act 2006.
Reference and Administrative Information
Charity name: British Youth Opera Charity registration number: 327927 Company registration number: 02322037 Registered office and operational address: _Until 30 June 2020:_ 2 Spare Street London SE17 3EP _From 1 July 2020:_ 2 Chapel Yard London SW18 4HZ
**Officers of the company** Patron HRH The Prince of Wales President Dame Felicity Lott CBE Vice Presidents Dame Janet Baker CH DBE Dame Sarah Connolly CBE Chevalier José Cura Timothy Dean Edward Gardner OBE Dr Jane Glover Sir John Hannam Valerie Masterson CBE Hugh Merrill MVO Rt Hon Baroness Perry of Southwark Peter Robinson Sir Bryn Terfel CBE Sir John Tomlinson CBE **Trustee Directors** Richard Greenhalgh – Chairman Jeremy Alun-Jones Richard Brooman Susan Bullock CBE (resigned 9 March 2020) Dr Genevieve Davies (resigned 30 June 2020) Dr Andrew Higgins Professor Dame Parveen J Kumar CBE Graham McGregor-Smith Elaine Padmore OBE Ellie Patsalos Dipesh Shah OBE FRSA Michael Simmons John Sunnucks
Page | 1
## **BRITISH YOUTH OPERA**
## **Charity information**
|**Company Secretary**|Nicola Candlish|
|---|---|
|**Staff**|Nicola Candlish -_Chief Executive_|
||Stuart Barker -_Director of Training and Productions_(Part time)|
||Charles Lewis -_Head of Communications_|
||Rosie Burgering -_Administrator_|
||Freya Dawes -_Office Assistant_, from April 2020_Development &_|
||_Communications Assistant_|
||Anna Patalong -_Development Consultant_(Part time)|
||Carla Pannett -_Development Consultant_(Part time)|
||Laurie Slavin -_Bookkeeper_|
||Lionel Friend -_Music Director_(Part time) contract ended September 2020|
|**Independent Auditors**|Saffery Champnes LLP|
||71 Queen Victoria Street|
||London|
||EC4V 4BE|
|**Bankers**|CAF Bank|
||25 Kings Hill Avenue|
||Kings Hill|
||West Malling|
||Kent ME19 4JQ|
Page | 2
**BRITISH YOUTH OPERA Trustees’ report (continued) For the year ended 31 December 2020**
## **Structure, governance and management**
## **Governing document**
The organisation is a charitable Company limited by guarantee and incorporated on 28 November 1988. The Company was established under a Memorandum of Association which established the object and powers of the charitable Company and is governed under its Articles of Association. An amended Memorandum and revised Articles were adopted by the Company on 19 September 2002 and amended on 15 January 2008.
## **Recruitment and appointment, induction and training of Trustees**
Under the revised Articles, the Company in general meeting may appoint any member of the Company as director. The board of directors may itself appoint a member of the Company to act as director until such time as the next annual general meeting when the member will be eligible for appointment. The Articles require there to be at least 5 directors at any time. At each annual general meeting one third of the board members retire by rotation and may offer themselves for reappointment.
The Board Nominations Committee in consultation with Board and other Committee members will review membership and propose new Trustee Directors as appropriate following the agreed procedure set out by this Committee. Most Trustee Directors are already familiar with the work of the charity and are given an induction pack on appointment following a rigorous procedure of identification.
## **Organisational structure**
The Board of Management, consisting of the Trustees and Officers, meets regularly to decide matters of policy and strategy and to monitor the charity’s activities. Day to day management is delegated to the Chief Executive.
## **Risk management**
Trustees regularly monitor and consider the risks to which the charity is exposed and implement procedures to minimise the potential impact of those risks.
A note on the management of BYO during the COVID-19 pandemic is at the end of this report.
## **Objectives and Activities**
British Youth Opera aims to develop and launch the next generation of opera professionals, enriching the future of British Opera. It does this by providing coaching, rehearsal, performance and production opportunities for singers, instrumentalists, repetiteurs, conductors, directors and other artistic and production staff. British Youth Opera has been at the forefront of providing participants with valuable experience of working in a professional opera company for more than 30 years and has been the launchpad for many eminent singers and stage professionals.
British Youth Opera’s main objectives for 2020 were to continue its annual ‘Summer Season’, combining the production processes of a major opera company and performances in a London theatre with coaching and training for participants, and its annual ‘Opera Workshops’, providing opportunities for singers to develop critical artistic skills without the pressure of performance.
Autumn 2019 saw the launch of the Serena Fenwick training extension programme. Six months of training aimed at singers who had experienced (either in the form of a workshop or summer Season activity), who were not enrolled at a conservatoire or music college, and who had a serious ambition and the potential to pursue a career in opera. Training took the form of six intensive weekends, designed in order for participants to maintain employment, caring or other responsibilities.
Page | 3
**BRITISH YOUTH OPERA Trustees’ report (continued) For the year ended 31 December 2020**
Singers are selected by a two-stage audition process, with first round auditions taking place across the UK; other participants are selected by interviews and/or auditions as appropriate. This process aims to ensure that participants are of a suitable standard to benefit from British Youth Opera’s activities. Trainees for other roles are selected by interview or audition carried out by skilled professionals from the appropriate field.
## **Strategy**
In February 2020 a revised strategy was adopted, with the principal aim of continuing to offer high quality training while closing the gap between income and expenditure.
Intended events in the 2020 calendar comprised:
- A new Easter Festival combining:
- Rehearsals and Performances by the Extension Programme trainees
- Three “Opera workshops” training around 45 singers
- various non-performing networking events for Young People in the Arts
- A fundraising symposium with Opera and Music Theatre Forum
- Season launch concert at The Actor’s Church in Covent Garden in May
- Concert performance of Weill’s Seven Deadly Sins with Southbank Sinfonia in June
- A joint profile and fundraiser with Lark Music at Leighton House in June
- A Double Bill of _The Breasts of Tiresias_ (Poulenc) and _Gianni Schichhi_ (Puccini) at the Hackney Empire Theatre in September
- A large-scale fundraising event, such as a Gala, in October/November
Prior to Coronavirus pandemic British Youth Opera’s activity plans for 2020 were to:
- audition singers in January and February in Birmingham, Cardiff, Glasgow, London and Manchester and interview for trainee positions in April, in London and online. Expand training to include two new disciplines - for 2020 these will be photographers and prop makers
- hold ‘Opera Workshops’ for singers in April and August.
- revamp the summer season by changing to a double bill format, announced prior to auditions and moving to the Hackney Empire Theatre
- continue to give opportunities to as many singers, orchestral players, repetiteurs, conductors, directors, designers, wardrobe assistants and stage management trainees as possible
- move on from the Gala format and create a glamorous auction event without the expense of a sitdown meal
- link with relevant organisations to expand our network of donors and interested parties through joint events and concerts, and engage with friends and supporters to create relevant events, including the launch of a hosted concert series
- explore partnerships with major UK opera companies, other training organisations and education establishments, including schools
The Trustees have complied with the duty in section 4 of the Charities Act 2006 to have due regard to public benefit guidance published by the Charity Commission in determining the charity’s objectives and activities.
Page | 4
**BRITISH YOUTH OPERA Trustees’ report (continued) For the year ended 31 December 2020**
## **2020 Activities**
## **Coronavirus**
Coronavirus which was declared a pandemic on 11 March 2020 has had a significant impact on the work of British Youth Opera and caused the Board to review all activities, costs and sources of income.
At the outset of the pandemic the Serena Fenwick Programme training weekends were complete, but no other training activity had taken place. Immediate steps were taken to postpone the Serena Fenwick Showcase and Easter Workshops. As the longevity of the pandemic became clear this activity, along with the Summer Season and Summer Workshops were cancelled.
Infrastructure and software upgrades enabling remote working paid dividends during 2020. These include, Google Suite, Raiser’s Edge database and Sage Cloud accounting software. During 2020 upgrades were made to enable taking donations and payments via credit card and direct debit. The online applications portal YAP tracker was used for the second year.
In May 2020 BYO cancelled the lease on the office space at Hotel Elephant and moved to a new space at The National Opera Studio. This move was not only practical but strategic as use of rehearsal and workshop space is included in the rental fee. This is a long term solution for BYOs office space, though a return to full-time officebased work is not intended.
Fundraising activities have been diminished, partly due to cancelled events, and partly due to supporters unwilling to part with money during the pandemic. Many trusts and foundations have closed temporarily, or have diverted funding to those hardest hit by the pandemic. Investments suffered an immediate hit, but have started to pick up. The Brewin Dolphin investment portfolio was valued at £56,878 on 31/12/2019; £45,472 on 05/04/2020; and £55,238 on 31/12/2020.
BYO took advantage of a number of Government schemes including the Covid-19 job retention scheme and business rates relief.
BYO is underpinned by financial reserves, which will support the charity through the immediate future and enable the charity to work through its revised strategy.
## **Auditions and interviews**
446 singers applied to participate in British Youth Opera during 2020; 419 were auditioned, from which 76 were selected for Workshops and 52 for the Summer Season. Throughout its application process, British Youth Opera works with the country’s music colleges, who actively encourage students to apply. Auditions take place in Birmingham, Cardiff, Glasgow, London and Manchester. At the outset of the pandemic this process was complete and singers had been informed of the outcome.
At the outset of the pandemic trainee positions were advertised but had not closed, and no interviews held except in the case of Assistant Conductors and Repetiteurs. Due to the timing and uncertainty of the situation, auditions for these positions were held by video and four appropriate candidates selected.
At the outset of the pandemic applications for all other training roles was paused and subsequently cancelled.
During Summer 2020 applications were received for the Serena Fenwick Programme. As all singers had already been auditioned by BYO in January interviews were held via video link and 13 candidates selected. The Serena Fenwick Programme began in October 2020 and has been held largely via video link.
Page | 5
**BRITISH YOUTH OPERA Trustees’ report (continued) For the year ended 31 December 2020**
## **Summer Season & Singer’s Workshops**
The intended Double Bill of _The Breasts of Tiresias_ (Poulenc) and _Gianni Schichhi_ (Puccini) at the Hackney Empire Theatre in September 2020 did not go ahead. Six planned singer’s workshops were cancelled.
## **Online Summer Festival**
In response to the pandemic BYO created an online Summer Festival combining workshops, masterclasses and lectures for singers, stage managers, directors and production assistants and. Taking place entirely via video link, over an intensive two week period in August this was a huge success. Big name leaders such as Sarah Connolly, Brindley Sherratt, Felicity Lott and Thomas Allen were welcomed as well as seasoned industry professionals. The Festival was welcomed by trainees, some of whom had not worked or received training since March. In all 172 trainees benefitted over 250 online training hours.
## **Fundraising activities**
British Youth Opera is an Arts Council England (ACE) National Portfolio Organisation.
Grants were also received for activities in 2020 from the following Trusts and Foundations, to whom the Company is extremely grateful:
|**The GC Gibson Trust**|**26th May 1961 Charity**|
|---|---|
|**The Garrick Trust**|**The D’Oyly Carte Charitable Trust**|
|**The Leche Trust**|**The Reed Foundation (the Big Give)**|
As ever, BYO was fortunate in receiving support from many individuals whose ongoing commitment to the company enables its work to continue. Due to the timing of the pandemic, only a small amount of fundraising had been completed. BYO is grateful to those supporters who unrestricted their Summer Season donations, enabling the company to move its work online during the pandemic.
Other donations and sponsorship from individuals continue to be major sources of income and with the absence of the Summer Season a Reconstruction Fund was launched. Taking advantage of the new ability to take online donations and process direct debits it was possible to run this campaign during the pandemic. This was coupled with a successful match funding campaign through the Big Give at the end of the year.
A new sponsorship scheme was launched in 2020 to support trainees on the Serena Fenwick Programme. BYO is grateful to the following for adopting Serena Fenwick artists:
|**Peter Heath**|**David Speller**|
|---|---|
|**Davina Hodson**|**John Sunnucks**|
|**Peter Rosenthal**|**John Wates**|
|**Sue Sheridan**||
In March 2020, prior to the pandemic, a new Membership scheme was approved. This intends to streamline levels and ensure compliance with updated Gift Aid and VAT requirements. During 2020 initial indications are favourable with friends choosing to renew, and in some cases move up the membership ladder.
Page | 6
## **BRITISH YOUTH OPERA**
**Trustees’ report (continued) For the year ended 31 December 2020**
## **Plans for Future Periods**
Strategic decisions for 2021 recognised the ongoing nature of the pandemic, and the need to preserve public and industry confidence in the work of BYO. To ensure the highest possibility of delivery BYO opted to hire an outdoor theatre venue for the 2021 Summer Season. Strategic objectives were achieved by the creation of two industry partnerships with Opera Holland Park and Silent Opera, for the venue hire and creation of a new training production respectively.
Following on from the success, and now normality, of online working, efforts are underway to incorporate this into training going forward, recognising however that online working does not replace face to face training in its entirety.
Singer’s workshops are planned for April and August 2021 and can be moved online if required. At the time of writing, conditions look favourable for August and possible for April. This will benefit up to 72 singers.
Singer applications continue to be via YAP tracker, and for 2021 auditions took place entirely by video submission. Recognising that this is not an ideal scenario, it is the intention to return to face to face or blended auditions in 2022. Trainee applications will take advantage of a new online portal for 2021.
For Summer Season 2021 BYO intends to stage Rossini’s _L’occasione fa il ladro_ (in Italian) and Humperdinck’s _Hansel and Gretel_ (in English). For the first time, both productions will be double cast and will work entirely in isolation from each other, in separate coronavirus-secure “bubbles”. _Hansel and Gretel_ is in partnership with Silent Opera, an innovative company combining the use of microphones and pre-recorded orchestral accompaniment where the audience hear the performance through headphones.
The decision was taken to produce operas without chorus, in order to reduce numbers of personnel in limited spaces.
Many decisions for 2021 were taken to ensure the maximum possibility of success in times where virus restrictions are likely to be in place.
The Serena Fenwick Programme has run largely online between October 2020 and March 2021. The showcase intended for April 2021 has been postponed until July, when the Government roadmap indicates that this will be possible. BYO are in the process of selecting a suitable outdoor venue for this.
The Coronavirus situation in relation to the performing arts is constantly monitored and decisions for 2022 will be made based on the likelihood of success. As a small organisation BYO, is able to be relatively fleet of foot and the strong team is able to respond quickly and creatively to challenges.
## **Financial Review and Reserves Policy**
As at 31 December 2020, the charity held cash at bank and investments at market value totalling approximately £398,487 (2019: £311,074). This amount comprises both reserves and funds held, with which to initiate the 2021 activities. At 31 December 2020, the charity held total unrestricted reserves of £391,266 (2019: £464,069).
The Charity seeks to retain free liquid reserves of at least £60,000 (2019: £50,000), which represents approximately three months’ normal operating expenditure. The charity holds a surplus for the year of £338,487 (2019: £261,074). As at 31 December 2020, British Youth Opera held cash at bank and realisable investments at market value totalling almost £400,000. While some of this will be applied in the execution of BYO’s plans in 2021, the Trustees are satisfied that the reserves policy is more than met.
Page | 7
## **BRITISH YOUTH OPERA**
## **Trustees’ report (continued)**
**For the year ended 31 December 2020**
## **Statement of Trustees’ Responsibilities**
The Trustees (who are the directors of British Youth Opera for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and on the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Statement as to disclosure to auditors**
In so far as the Trustees are aware:
- there is no relevant audit information of which the charitable company’s auditor is unaware; and
- the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
## **Going concern**
The Trustees have considered the ability of the Charity to continue as a going concern, particularly in the context of the uncertainties surrounding the Coronavirus pandemic.
The Trustees have reviewed the Charity’s financial activity since the 2020 year end and the forecasts to 31 December 2021 and 2022; they have concluded that the going concern basis of accounting remains appropriate.
This report has been prepared in accordance with the special provisions relating to small companies within part 15 of the Companies Act 2006.
Approved by the Trustees and authorised to sign on their behalf:
……………………………………………………………….
Richard Greenhalgh – Chairman
Date:
Page | 8
## **BRITISH YOUTH OPERA**
**Independent auditors’ report to the trustees For the year ended 31 December 2020**
## **Opinion**
We have audited the financial statements of the British Youth Opera for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the charitable company’s state of affairs as at 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **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.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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
Page | 9
## **BRITISH YOUTH OPERA**
## **Independent auditors’ report to the trustees For the year ended 31 December 2020**
material misstatements, we are required to determine whether this gives rise to 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:
- the information given in the Trustees’ Annual Report which includes the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Trustees’ Annual Report which includes the Directors’ Report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Trustees’ Responsibilities Statement set out on page 8, the trustees (who are also directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.
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
Page | 10
**Independent auditors’ report to the trustees For the year ended 31 December 2020**
## **BRITISH YOUTH OPERA**
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
## Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charitable company by discussions with trustees and updating our understanding of the sector in which the charitable company operates.
Laws and regulations of direct significance in the context of the charitable company include the Companies Act 2006 and guidance issued by the Charity Commission for England and Wales.
## Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Page | 11
## **BRITISH YOUTH OPERA**
## **Independent auditors’ report to the trustees For the year ended 31 December 2020**
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Claire Wills (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP
Chartered Accountants 71 Queen Victoria Street Statutory Auditors
London EC4V 4BE
> Date: 12 May 2021
Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
Page | 12
## **BRITISH YOUTH OPERA**
## **Statement of financial activities For the year ended 31 December 2020**
|**Unrestricted**
**Funds**
**NOTE**
**£**
**Income from:**
Donations, legacies and Grants
**2**
167,461
Fundraising events
**3**
504
Investments
1,482
Charitable activities
**4**
19,094
**Total income**
188,541
**Expenditure on:**
**Raising funds**
Generating voluntary income
49,210
Fundraising events
50,509
**Charitable activities**
171,328
**Total expenditure**
**5**
271,047
**Net expenditure before**
**investment gains/ (losses)**
**6**
(82,506)
Net gains/ (losses) on
investments
(949)
**Net (expenditure)/income**
(83,455)
Theatre Tax Relief
**7**
10,652
**Net movement in funds**
(72,803)
Transfer Between Funds
**14**
3,500
**Reconciliation of Funds**
Fund balances at 1 January
460,569
**Fund balances at 31**
**December**
**14**
391,266|**Unrestricted**
**Funds**
**NOTE**
**£**
**Income from:**
Donations, legacies and Grants
**2**
167,461
Fundraising events
**3**
504
Investments
1,482
Charitable activities
**4**
19,094
**Total income**
188,541
**Expenditure on:**
**Raising funds**
Generating voluntary income
49,210
Fundraising events
50,509
**Charitable activities**
171,328
**Total expenditure**
**5**
271,047
**Net expenditure before**
**investment gains/ (losses)**
**6**
(82,506)
Net gains/ (losses) on
investments
(949)
**Net (expenditure)/income**
(83,455)
Theatre Tax Relief
**7**
10,652
**Net movement in funds**
(72,803)
Transfer Between Funds
**14**
3,500
**Reconciliation of Funds**
Fund balances at 1 January
460,569
**Fund balances at 31**
**December**
**14**
391,266|**Restricted**
**Funds**
**£**|**Total**
**2020**
**£**|**Total**
**2019**
**£**|
|---|---|---|---|---|
||167,461
504
1,482
19,094
188,541
49,210
50,509
171,328
271,047
(82,506)
(949)
(83,455)
10,652
(72,803)
3,500
460,569
391,266|-
-
-
-
-
-
-
-
-
-
-
-
-
-
(3,500)
3,500
-|167,461
504
1,482
19,094
188,541
49,210
50,509
171,328
271,047
(82,506)
(949)
(84,455)
10,652
(72,803)
464,069
391,266|203,601
61,330
4,362
22,323|
|||||291,616|
|||||67,639
132,853
567,560|
|||||768,053|
||||||
|||||(476,437)
22,941|
|||||(453,496)
145,000|
|||||(308,496)|
|||||772,565|
|||||464,069|
The notes on pages 16 to 25 form part of these accounts
Page | 13
## **BRITISH YOUTH OPERA**
## **Balance sheet At 31 December 2020**
|**Note**
**Fixed Assets**
Tangible assets
**10**
Investments
**11**
**Current Assets**
Debtors
**12**
Cash at bank and in hand
**Creditors: Amounts falling**
**due within one year**
**13**
**Net Current Assets**
**Net Assets**
**Funds**
**14**
Restricted Funds
Unrestricted Funds|**2020**
**£**
**£**
2,497
55,238
11,693
343,249
354,942
(21,411)
333,531
391,266
-
391,266
391,266|**2019**
**£**
**£**
2,714
56,878
165,118
254,196
419,314
(14,837)
404,477
464,069
3,500
460,569
464,069|**2019**
**£**
**£**
2,714
56,878
165,118
254,196
419,314
(14,837)
404,477
464,069
3,500
460,569
464,069|
|---|---|---|---|
||354,942
(21,411)|419,314
(14,837)||
|||||
||||464,069|
||||3,500
460,569|
||||464,069|
These accounts are prepared in accordance with the special provisions for the small companies under Part 15 of the Companies Act 2006.
Approved by the Board and signed on its behalf by
……………………………………………………………….
Richard Greenhalgh – Director and Trustee Date:
Company No: 02322037
The notes on pages 16 to 25 form part of these accounts.
Page | 14
## **BRITISH YOUTH OPERA**
**Cash flow statement For the year ended 31 December 2020**
|**CF 1**
**Cash flows from operating activities**
Net incoming resources before investments and
exceptional items
Adjustments for:
Depreciation
Theatre Tax Relief
Investment Income
Movements in working capital:
Decrease in debtors
Increase/(Decrease) in creditors
**Net cash flow from operating activities**
Note
**Net cash flow from operating activities:**
**Net cash provided by (used in) operating**
**activities**
CF1
**Cash flows from Investing activities**
Purchase of tangible fixed assets
Proceeds on disposal of investments
Interest Income
**Net cash used in investing activities**
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of
the year
**Cash and cash equivalents at end of year**|**2020**
**£**
(82,506)
901
10,652
(1,482)
153,425
6,574
87,564
**2020**
**£**
**£**
87,564
(684)
691
1,482
1,489
-
89,053
254,196
343,249|**2020**
**£**
(82,506)
901
10,652
(1,482)
153,425
6,574
87,564
**2020**
**£**
**£**
87,564
(684)
691
1,482
1,489
-
89,053
254,196
343,249|**2019**
**£**
(476,437)
1,363
145,000
(4,362)
362,370
(8,999)
18,935
**2019**
**£**
**£**
18,935
(1,988)
200,572
4,362
202,946
-
221,881
32,315
254,196|
|---|---|---|---|
|||||
|||||
Page | 15
**Notes to the Financial Statements For the year ended 31 December 2020**
## **BRITISH YOUTH OPERA**
## **1. Accounting policies**
## **Charity Information**
British Youth Opera is a charitable company limited by guarantee. The registered office is 2 Chapel Yard, London, England, SW18 4HZ.
A summary of the principal accounting policies, all of which have been applied consistently throughout the year and the preceding year, is set out below.
## **1.1**
## **Basis of preparation**
The financial statements have been prepared in accordance with accounting and reporting by Charities’ Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 Jan 2019) Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and republic of Ireland (FRS 102) and the Companies Act 2006.
The British Youth Opera meets the definition of a public benefit entity under FRS 102. Assets and liabilities are wholly recognised at historical costs or transaction value unless otherwise stated in the relevant accounting policy note(s). The financial statements are presented in pounds sterling.
## **1.2**
## **Going Concern**
The Trustees have considered the ability of the Charity to continue as a going concern, particularly in the context of the uncertainties surrounding the Coronavirus pandemic.
The Trustees have reviewed the Charity’s financial activity since the 2020 year end and the forecasts to 31 December 2021 and 2022; they have concluded that the going concern basis of accounting remains appropriate.
## **1.3 Tangible Fixed Assets**
Fixed assets initially recognised at cost less depreciation.
Depreciation is calculated so as to write off the cost of tangible fixed assets over their estimated useful lives at the following annual rates:
Office Equipment 25%
## **1.4**
## **Investments**
Investments are stated at mid-market value at the balance sheet date. The SOFA includes the net gains and losses arising on revaluation and disposals throughout the year. Income receivable on investments is recognised in the SOFA on the accruals basis.
## **1.5**
## **Income**
All income is included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income
Donations are recognised when the Trust has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of
Page | 16
**Notes to the Financial Statements For the year ended 31 December 2020**
## **BRITISH YOUTH OPERA**
performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.
Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator for the estate has communicated in writing both the amount and the settlement date.
Income generated from the supply of goods or services is included in the Statement of Financial Activities in the period in which the supply is made.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
## **1.6 Grants**
Grants, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they are receivable.
## **1.7 Financial instruments**
The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments (i.e. debtors and creditors).
## **1.8 Critical estimates and judgements**
Judgements and estimates 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. In making these estimates the Trustees make assumptions concerning the future. The Trustees do not believe that there is significant risk of a material adjustment being made to the carrying amounts of assets and liabilities included in these financial statements within the next financial year.
## **1.9 Expenditure**
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to applicable expenditure headings.
Support and governance costs have been allocated between generating voluntary income, costs of fundraising events and charitable activities.
Support costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs related to statutory audit and legal fees together with an apportionment of overhead and support costs. Support costs relating to charitable activities have been apportioned on the basis of salaries or area occupied, whichever being the most appropriate.
Staff costs are allocated to activities on the basis of staff time spent on those activities.
Costs of charitable activities include governance costs and an apportionment of support costs (shown in note 5)
Page | 17
## **BRITISH YOUTH OPERA**
## **Notes to the Financial Statements For the year ended 31 December 2020**
## **1.10 Funds**
Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the charity without further specified purpose and are available as general funds.
Restricted funds are used for specific purposes determined at the time of the appeal/donation.
|**2.**
**Donations, legacies and Grants**
Trusts and Foundations
Arts Council England
Friends Membership
Friends Donations
Legacies
Other donations, sponsorship and Gift
Aid
Government Grants (Furlough
Scheme)
**3.**
**Fundraising**
Gala events
**4.**
**Incoming Resources from Charitable**
**Activities**
**Summer Season and Workshops**
Box Office
Trusts and Foundations
Auditions|**Total**
**Total**
**2020**
**2019**
**£**
**£**
35,500
9,720
43,405
42,621
14,108
16,519
-
34
-
63,000
59,381
71,707
15,067
-
167,461
203,601
**2020**
**2019**
**£**
**£**
504
61,330
504
61,330
**2020**
**2019**
**£**
**£**
-
15,089
12,500
1,000
6,594
6,235
19,094
22,323|**Total**
**2019**
**£**
9,720
42,621
16,519
34
63,000
71,707
-|**Total**
**2019**
**£**
9,720
42,621
16,519
34
63,000
71,707
-|
|---|---|---|---|
||||203,601|
||||**2019**
**£**
61,330|
||||61,330|
||||**2019**
**£**
15,089
1,000
6,235|
||||22,323|
Page | 18
## **BRITISH YOUTH OPERA**
## **Notes to the Financial Statements For the year ended 31 December 2020**
## **5. Analysis of Total Expenditure**
|**Unrestricted funds**
Generating voluntary income
Fundraising events
Charitable activities
**Restricted funds**
Charitable activities
**Analysis of direct costs**
Freelance support
Marketing costs
Hospitality
Summer season
Extension programme
Online training
Fundraising event costs
**Analysis of support costs**
Audit
Legal & professional
Office costs|**Staff costs**
**£**
37,135
37,135
74,270
-
148,540
**Generating**
**voluntary**
**income**
-
-
-
-
-
-
-
**2020**
7,050
10,830
30,420
48,300|**Direct costs**
**£**
-
1,299
72,908
-
74,207
**Fundraising**
**events**
-
-
-
-
-
-
1,299
1,299
**2019**
10,064
9,190
54,087
73,341|**Support**
**costs**
**£**
12,075
12,075
24,150
-
48,300
**Charitable**
**activities**
43,165
2,654
-
6,450
8,956
11,683
-
72,908|**Total 2020**
**£**
49,210
50,509
171,328
-|
|---|---|---|---|---|
|||||271,047|
|||||**Total 2020**
43,165
2,654
-
6,450
8,956
11,683
1,299|
|||||74,207|
||||||
Page | 19
## **BRITISH YOUTH OPERA**
## **Notes to the Financial Statements For the year ended 31 December 2020**
## **5. Analysis of Total Expenditure (continued)**
|**Staff costs**
**£**
**Unrestricted funds**
Generating voluntary income
49,304
Fundraising events
49,304
Charitable activities
98,608
**Restricted funds**
Charitable activities
-
197,215
**Analysis of direct costs**
**Generating**
**voluntary**
**income**
Freelance support
-
Marketing costs
-
Hospitality
-
Summer season
-
Extension Programme
-
Fundraising event costs
-
-
**6.**
**Net Incoming Resources**
**This is stated after charging**
Depreciation on owned assets
Auditors' remuneration- Audit Fees
Auditors’ Remuneration- Other Services
**7.**
**Theatre Tax Relief**
Theatre Tax Relief|**Direct costs**
**£**
-
65,214
393,012
39,271
497,497
**Fundraising**
**events**
-
-
-
-
-
65,214
65,214|**Support**
**costs**
**Total 2019**
**£**
**£**
18,335
67,639
18,335
132,853
36,670
567,560
-
-
73,341
768,053
**Charitable**
**activities**
**Total 2019**
24,492
24,492
14,111
14,111
372
372
391,567
391,567
1,741
1,741
-
65,214
432,282
497,497
**2020**
**2019**
**£**
**£**
901
1,363
7,050
6,000
-
4,064
**2020**
**2019**
**£**
**£**
10,652
145,000|**Support**
**costs**
**Total 2019**
**£**
**£**
18,335
67,639
18,335
132,853
36,670
567,560
-
-
73,341
768,053
**Charitable**
**activities**
**Total 2019**
24,492
24,492
14,111
14,111
372
372
391,567
391,567
1,741
1,741
-
65,214
432,282
497,497
**2020**
**2019**
**£**
**£**
901
1,363
7,050
6,000
-
4,064
**2020**
**2019**
**£**
**£**
10,652
145,000|
|---|---|---|---|
|||||
||||**2019**
**£**
145,000|
Page | 20
## **BRITISH YOUTH OPERA**
**Notes to the Financial Statements For the year ended 31 December 2020**
## **8. Staff Costs and Numbers**
|**Staff Costs and Numbers**|||
|---|---|---|
|Salaries
Social security costs
Pension costs|**2020**
**£**
129,570
8,475
10,495
148,540|**2019**
**£**
170,050
14,929
12,236|
|||197,215|
No employee received emoluments of more than £60,000 (2019: none). The average weekly number of employees during the year was 5 (2019: 5).
Contributions to defined contribution pension schemes were £8,295 (2019: £11,036).
The trustees received no remuneration nor had any expenses reimbursed during the year (2019: remuneration and expenses of £nil).
The total employee benefits (being salary and pension contributions) of key management personnel of the charity were £50,000 (2019: £74,133).
## **9. Taxation**
The charitable company is exempt from corporation tax on its charitable activities.
Page | 21
## **BRITISH YOUTH OPERA**
## **Notes to the Financial Statements For the year ended 31 December 2020**
## **10. Tangible Fixed Assets**
|**Cost**
At 1 January 2020
Additions during the year
At 31 December 2020
**Depreciation**
At 1 January 2020
Charge for the year
At 31 December 2020
**Net book value**
At 31 December 2020
At 1 January 2020|**Office**
**Equipment**
**£**
16,443
684|
|---|---|
||**17,127**|
||13,729
901|
||**14,630**|
||**2,497**|
||**2,714**|
There were no commitments to capital expenditure at 31 December 2019 or 31 December 2020.
## **11. Fixed asset investments**
|Listed Investments:
Market Value at 1 January
Purchases
Sales at opening market value
Investment gains/ (losses)
Movement in investment cash
Market Value at 31 December
Historical cost
**12.**
**Debtors**
VAT
Other debtors and prepayments||**2020**
**£**
56,878
30,224
(28,262)
(3,602)
-
55,238
53,234
**2020**
**£**
-
11,693
11,693||**2019**
**£**
234,510
8,780
(172,687)
7,307
(21,032)|
|---|---|---|---|---|
|||||56,878|
|||||48,488
**2019**
**£**
11,834
153,284|
|||||165,118|
Page | 22
## **BRITISH YOUTH OPERA**
## **Notes to the Financial Statements For the year ended 31 December 2020**
## **13. Creditors: Amounts Falling due within one year**
|Accruals and deferred income
VAT|**2020**
**£**
16,043
5,368
21,411|**2019**
**£**
14,837
-|
|---|---|---|
|||14,837|
## **14. Movement In Funds**
|**Funds**
Restricted funds
Unrestricted funds|**At 1st**
**January**
**2020**
**£**
3,500
460,569
464,069|**Incoming**
**Resources**
**£**
-
198,243
198,243|**Outgoing**
**Resources**
**£**
-
271,046
271,046|**Transfer**
**between**
**funds**
**£**
(3,500)
3,500
-|**At 31**
**December**
**2020**
**£**
-
391,266|
|---|---|---|---|---|---|
||||||391,266|
Restricted funds in respect of the 2020 Summer Season were transferred to unrestricted funds following the cancellation of the summer season activities through agreement with the original benefactors.
|**Funds**
Restricted Funds
Unrestricted funds|**At 1st**
**January**
**2019**
**£**
-
772,565
772,565|**Incoming**
**Resources**
**£**
42,771
416,786
459,557|**Outgoing**
**Resources**
**£**
39,271
728,782
768,053|**Transfer**
**between**
**funds**
**£**
-
-
-|**At 31**
**December**
**2019**
**£**
3,500
460,569|
|---|---|---|---|---|---|
||||||464,069|
Page | 23
## **BRITISH YOUTH OPERA**
## **Notes to the Financial Statements For the year ended 31 December 2020**
|**15.**
**Analysis of Net Assets Between Funds**
Fixed Assets
Current Assets
Current Liabilities
Fixed Assets
Current Assets
Current Liabilities|**Restricted**
**Funds**
**2020**
**£**
-
-
-
-
**Restricted**
**Funds**
**2019**
**£**
-
3,500
-
3,500|**Unrestricted**
**Funds**
**2020**
**£**
57,735
354,942
(21,411)|
|---|---|---|
|||391,266|
|||**Unrestricted**
**Funds**
**2019**
**£**
59,592
415,814
(14,837)|
|||460,569|
## **16. Related Party Transactions**
No Trustees have been paid any remuneration or received any benefits from their association with British Youth Opera. The following amounts were received from trustees throughout the year as unrestricted donations £7,354 (2019: £2,333). No other related party transactions took place in the year (2019: none).
## **17. Analysis of Changes in Net Debt**
|Cash at bank|**At 1st**
**January**
**2020**
**£**
254,196
254,196|**Cash-**
**flows**
**£**
89,053
89,053|**At 31**
**December**
**2020**
**£**
343,249|
|---|---|---|---|
||||343,249|
Page | 24
## **BRITISH YOUTH OPERA**
## **Notes to the Financial Statements For the year ended 31 December 2020**
## **18. Statement of Financial Activities for the year ended 31 December 2019**
|**Income from:**
Donations, legacies and Grants
Fundraising events
Investments
Charitable activities
**Total income**
**Expenditure on:**
**Raising funds**
Generating voluntary income
Fundraising events
**Charitable activities**
**Total expenditure**
**Net expenditure before investment**
**gains/ (losses)**
Net gains/ (losses) on investments
**Net income/(expenditure)**
Theatre Tax Relief
**Net movement in funds**
**Reconciliation of Funds**
Fund balances at 1st January 2019
**Fund balances at 31st**
**December 2019**|**Unrestricted**
**Funds**
**£**|**Restricted**
**Funds**
**£**|**Total**
**2019**
**£**|
|---|---|---|---|
||160,830
61,330
4,362
22,323
248,845
67,639
131,938
528,289
728,782
(479,937)
22,941
(456,996)
145,000
(311,996)
772,565
460,569|42,771
-
-
-
42,771
-
-
39,271
39,271
3,500
-
3,500
-
3,500
-
3,500|203,601
61,330
4,362
22,323|
||||291,616|
||||67,639
132,853
567,560|
||||768,053|
|||||
||||(476,437)
22,941|
||||(453,496)
145,000|
||||(308,496)
772,565|
||||464,069|
Page | 25