City of Birmingham Symphony Orchestra ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 March 2024 Company Registration No. 01262018 Charity No. 506276 City of Birmingham Symphony Orchestra CONTENTS Contents Chair's Report...............................-..............................-...............-.............-............-................-..............................-...................................... Chief Executive's Report...............................-................-............-.............-...............-..............................-..............................-................ Report of the Trustees...............................-..............................-..............................-..............................-..............................-..................... Independent Auditor's Report...............................-..............................-............-................-..............................-.................................. Statement of Financial Activities...............................-..............-..............-..............................-..............................-............................26 Balance Sheet...............................-..............................-...............-.............-............-................-..............................-...................................27 Statement of Cashflows...............................-...............-............-.............-...............-..............................-..............................-..............28 Accounting Policies...............................-................-...........-..............-..............-..............................-..............................-.......................29 Notes to the Financial Statements...............................-..............-..............-..............................-..............................-........................33 Page2 City of Birmingham Symphony Orchestra CHAIR'S REPORT Chair's Report This is a fantsstic world class orchestra - and I was thrilled and honoured, last November, to become Chair of the Board. Not only is it firing on all cylinders artistically, but it's also winning new and younger audiences and showing how musi¢ should play a fundamentsl role in education. Those city fathers - and they were all men- who founded our orchestra well over a century ago would be proud of what our musicians are doing for Birmingham today. 2023 has seen a new team at the top, building on what has been achieved before. Emma Stenning, who has had a distinguished career in theatre is our new CEO. And she has been joined by the irrepressible Kazuki Yamada as Chief Conductor and now Music Director. Together, with our brilliant players and staff, they promise a bright future for our remarkable orchestra. Look at the record of what's already been done. During the year, the CBSO performed 52 orchestral concerts and16 Chamber concerts at home in Birmingham. There were a number of visits around the country, and two thrilling, sold out performances at the BBC Proms, including a rousing Carmina Burana under Kazuki's baton, and a celebratory night of Bollywood music which was broadcast live on BBC2. International tours took us to Japan, and the prestigious Leipzig Mahler Festival, where we were the only British orchestra invited by Festival Director. and former CBSO Music Director, Andris Nelsons. Significant European dates saw us play Germany, Switzerland. Belgium. Croatia and Slovenia. Most cities were debuts for Kazuki, and astounding reviews made it clear that the orchestra's relationship with its new Chief was something very special indeed: ..In this impressive form the CBSO is likely to be the current number one in the United Kingdom. Rarely has such euphoric cheering for the experience been heard in the Alte Oper Frankfvrt." Online Merker, FrankFurt Alte Oper, 9 March 2024 Back home, we've set out our ptans to be ever more welcoming to the full breadth of the city's diverse and youthful communities. We want everyone in Birmingham and beyond to have the Chance to enjoy the richness and joy of the music we believe in. That's why we've been exploring, from time to time, new forms of concert performance and new creative o)Ilaborations, and why we've been working to make the concert hall a more openly inviting space. The orchestra wants to arrest the decade long decline in audience numbers. This is work that is vital to all of us who believe in the power of classical music. And there are signs it's working. I'm thrilled to rep)rt, at time of writing, 80/0 growth in ticket sales and 15.50/0 growth in numbers of bookers over this past year, along with the fact that 28% of our audience is now under 30. We also want to demonstrate how important music should be to every Child's education- whatever their background. We were tremendously proud to open the Shiretand CBSO Academy for its first intake of150 Year 7 students. This is a pioneering Collaboration between the orchestra and the Shireland Multi Academy Trust The school is the first of its kind; a stste funded education. for a student body largely drawn from its local Sandwell community, where every wpil learns the orchestral instrument of their ¢hote, in classes that weave in be￿een a curriculum that is themed around music, and flexes to include masterclasses, inspiration sessions and drop in visits from CBSO players, conductors and guest musicians. Formally, we connect at governance leve( CBSO'S CEO, Emma Stenning, becoming a Trustee of the Multi Academy Trust, and the Trust's CEO, Sir Mark Grundy, joining the CBSO board (in July 2024). CBSO'S Creative Director - Learning & Engagemenc Tom Spurgin. chairs the school's Standards and Performance Committee. Jointly, we are committed to the ongoing fundraising required to ensure the school's future growth and su¢¢ess. It's a miraculous place, that puts music at the heart of the school, and its surrounding community, and we look forward to dis¢overiro its impact over the long term. Finally, whatever you do in life, you're building on the work of those who've gone before. In my Case, I'd like to pay tribute to the passion, dedication and love that my predecessor as Chair had for this Orchestra - my heartfelt thanks to Dawd Burbidge. Page 3 City of Birmingham Symphony Orchestra CHAIR'S REPORT These have been difficult times for the Arts. The decision by the Birmingham City Council to stop funding not only the CBSO, but other worKlerful cultural organisations in our city, is shortsighted. Birmingham should be one of the great cultural cities of the UK and Europe. This orchestra is an essential part of the vision of what Birmingham can and should be. Tony Hall, Lord Hall of Birkenhead CBE Page 4 City of Birmingham Symphony Orchestra CHIEF EXECUTIVE'S REPORT Chief Executive's Report l am delighted to be presenting the 2023/24 Annual Repor( which Covers my first year in p)st as Chief Executive of this remarkable orchestra. The year has been a true adventure. and I remain both thrilled and privileged to work alongside such an inspirational group of players, stsff and trustee& We began in fine fashion, with the full forces of the CBSO on display for a glorious Carmina Burana, Kazuki's first concert as our newly appointed Chief Conductor. As celebratory balloons fell over the concert hall during the final apptause, it was abundantly clear that our players, relationship with their new Chief was going to be something very special indeed. As the season continued, Kazuki's warmth and sense ofjoy permeated our musical life, and thrilled our audiences, across Birmingham, and around the world. We are privileged that he has since accepted the p)sition of Music Director, and look forward to our continuing together over many seasons to come. It has been a year of exceptionaL exquisite, music, from our home base at Symphony Hall to tour venues across the country and further afield. It was my tremendous pleasure to join the orchestra on visits to some of Europe's finest Concert halts, and l c￿ report rapturous, thrilled audiences on each occasion. Of particular highlight for me were February's schools, performances, where we welcomed11,000 children to Symphony Hall during a week ofpacked-OUtperforman¢es (plus another10,600 via streaming), our magnificent celebrations of the CBSO Chorus, 50th Anniversary, a wonderful concert with Kazuki at Hamburg's beautiful Elbphilharmonie, and Sakari Oramo's return to Birmingham and the orchestra he once led, for a spe¢tacuLar evening of Sibe&'us and Strwss In September, we opened our s¢h¢)oL the Shireland CBSO Academy, a trail blazing new partnership between the orchestra and the Shireland Multi Academy TrusL The CBSO and the Shireland CBSO Academy are connected by our governance structures with representation across both Boards. We are so proud of our first intske of students, all of whom have taken up the opportunity of music with excitement and commitment. The school Christmas cOn￿rt was brilliantly attended by families and friends from across the Sandwell community, and was a wonderful showcase of the student's talent and p)tentiaL expertly nurtured by Principal David Gr￿n, his terrific staff team and our partners at the Sandwell Music Service. In February, we were honoured to welcome our Patron, the Duke of Edinburgh, formally to open the school. His Royal Highness warmly joined in music classes, spent time with pupils and staff and was guest of honour for the first, of what we hope will become many. performances by students with players from the CBSO. This was also a year when we began to dig deep into the strategic challenges facing both our orchestra, and our sector. The urgent need to develop and grow our audiences, all the while shoring up the long-term financial health of the Charity, is of paramount imp)rtan¢e. Birmingham, with its defining youthfulness and diversity remains an immense opportunity (despite the City council's short-sighted decision to Cut the CBSO'S fijndingl, as is the potential for cross-artform and cros&cultural collaboration as a way of encouraging new people to the ¢on¢ert hall for the first time. We have committed ourselves to a period of experimentation and learning, articulated in our draft Vision Statement {published 30 November), and we continue to evolve new elements of our programme. alongside our traditionally presented core classical offer. That audiences have grown during this period is hugely encouraging, and we look forward to the further adventures and new partnerships ahead. During the year, the orchestra bade a fond farewell to Emma Bunting after nearly two years, service as Director of Finance & Resources. Emma brilliantly supported a period of significant challenge and change at the CBSO, with both the Covid pandemic and the transition of CEO, and also led the complex submission to Arts Council England that successfully secured a further three years of regular funding. Thanks are owed for her commitment and dedication. Newly joining the Senior Team were Sally Munday, who took up Emma's p)sition up)n her departure, and Graham Sibley, known for many years as the orchestra's tuba player, who Èecame our new Director of Orchestra Operations. Both have become vitsl voices in Company's leadership, and I look forward to their continued contribution. Page 5 City of Birmingham Symphony Orchestra CHIEF EXECUTIVE'S REPORT It was with enormous fondness that we said goodbye to David Burbidge as Chair, whose warmth and care for the company had defined his tenure, matched in equal measure by the Commitment of his wife, Sandra. In his place, l am delighted to welcome Lord Tony Hall, who brings a wealth of experience, an evident love of orchestral music, and a real sense of ambition for the CBSO'S future. We very much look forward to the season ahead Emma Stenning, Chief ExecLrtive Page 6 City of Birmingham Symphony Orchestra REPORT OF THE TRUSTEES For the year ended 31 March 2024 Report of the Trustees The Trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 March 2024, which are prepared to meet the requirements for a directors, reFY)rt and accounts for Companies Act purpose& Objectives and activities Principal Activity The principal activity of the charity is to provide a wide access to musi¢ for audiences and participants, within the West Midlands region and beyond, through its concert performances and its extensive education and choral activities. Mission and Objects Led by a world-ctass symphony orchestra, the CBSO family of instrumental and choral ensembles shares musical excellence in performance, education and participation with the widest possible audiences in Birmingham, the Midlands and internationally. enrichir#J lives and inspiring people of all backgrounds. The objects of the charity, as ststed in its arti¢le& are: To carry on, as a going Concern, undertaking of the orchestra known as the City of Birmingham Symphony Orchestra; To promote, maintain or improve musical education and to encourage the arts of music, mime, drama, singing and dancing To undertake or assist in undertaking the organisation and management of bodies of musical performers, performances involving the playing of music. lectures in the studies of music, other educational activities connected with music arKI todies of students c* persons interested in music in any part of the worlrt To promote education in or the appreciation or practice of music, or the production of musical works, or the invention or improvement of musical instruments or of any means of reproducing music, by financial or other inducements or awards Key Activities The strategy employed to achieve the charity's objectives is to undertake the key activities listed below. Promoting concerts in Birmingham as the resident orchestra at Symphony Hall, performing a wide range of music, including evening and matinee 'core' orchestral concerts, a series of lighter 'Poputar Classics, concerts, and schoots, family and early years concets, Concert performances at other venues in the United KiNJdom, including appearances at major arts festival¥ Concert performances around the world, acting as a cultural ambassador for the City of Birmingham, the Midlands, and the UK" Regular broadcasting work on radio and television, digitsl concerts which are streamed live and on demand and the release of CDS for a variety of recording companies., An extensive education programme in schools and Local communities, including a successful Youth Orchestra; Running three "unpaid professional" choruses, one each for adults, young people and children, and one un-auditiorEd community choir, all of which perform with both the CBSO and other musical groups; Management of the CBSO Centre, which is the orchestra's rehearsal and administrative home, but also functions as a mediunFs¢ale performance venue and stages a series of mainly lunchtime chamber concerts by CBSO players. as well as being let out to other arts organisations Page 7 City of Birmingham Symphony Orchestra REPORT OF THE TRUSTEES For the year ended 31 March 2024 Strategic Report The Trustees of the charity are pleased to approve the following Strategic Report in their capacity as company directors. Achievements and Performance The objectives of the charity for 2023/24 were to stsbilise the new senior management team, grow sales revenue and reach new audience& Another aim was to progress towards completing the Sound of the Future fundraising campaigrL The charity sought to embed its commitment to Birmingham, seeking to more deeply ¢onne¢t the orchestra to the full breadth of the ¢ity'S diverse cultural communities,. thwe was an aim to explore new audiences by offering a more immersive or event like experience. The charity aimed to recruit and retain the best possible musicians and Chorus members whilst seeking to become a more culturally representstive organisation. The charity also set the objective of delivering and planning an ambitious and exciting artistic programme for the year. Overview 2023n4 was a year of change for the CBSO, with a new Chief Executive and new Chief Conductor starting their tenures in April. As always, wonderful concerts magnificent choral works, schools, project4 youth ensembles and international touring packed the s¢trEdul With new leadership came a new sense of vision and purpose, and a promise to explore the potential of the orchestra to find ways more meaningfully to connect with all of Birmingham, a gloriously youthful and culturally diverse city. A draft Vision Ststement outlining these plans was published in November, as the orchestra committed to an18-month period of exploration that would involve some experimental performances, cross cultural and cross art form collaborations, and moves to make the concert hall seem more welcoming to newcomers. Tlis innovation purposefully sat as part of a Concert programme that also included and celebrat￿1 many symphonic masterpieces, played in beloved traditional formaty thus demonstrating the full breadth of what a contemporary orchestra can tE. Key milestones during the year included: The publication of a new draft Vision Ststement setting the tone for a new creative chapter for the orchestra, and its ongoing consultstion with players. stsff. audiences, and communities across Birmingham., 8010 growth in sales and150k growth in new bookers; Stand out performances from Sheku Kanneh-Masor4 Rey Chen, the Orchestra Qawwali ProjecL Anna Lapwood, Jess Giltam and Benjamin Grosvenor; A brilliant celebration of the CBSO Chorus at 50, and 40 years of Simon Haisey's extraordinary leadership., Our first evening of music from the video game franchise Final Fantssy, that brought an entirely new audience to Symphony Hall. Two sold out appearances at the BBC Proms. with Kazuki conducting Carmina Burana featuring the full chorus, and Associate Conductor Michael Seal leading an evening of Bollywood music that was televised on BBC 2; Significant tours to Japan and across Europe that cemented Kazuki's reputation, and created a terrific international buzz for the promi* of his relationship with the orchestra- The opening of our school, the ShirelaNJ CBSO Academy, The arrival of a new Chief Executive, with Emma Stenning having taken over from Stephen Maddock in May 2023; The arrival of Kazuki Yamada as the Chief Conductor and Artistic Advisor from April 2023. The appointment and arrival of Lord Tony Hall as Chair from November 2023. Page 8 - - - - - - - - - - - - - - - - - - City of Birmingham Symphony Orchestra REPORT OF THE TRUSTEES For the year ended 31 March 2024 Overseas Touring The CBSO enjoyed a highly successful tour of Japan with Kazuki Yamada, and an appearance in the Leipzig Mahler Festival of Mahler's11Y symphony wth Robert Trevino. The timing of concerts in terms of overseas touring activity has meant that revenue from this fell in the year by 400/0 or £0.8m (from £2.Om to £1.2m}. Digital Activities including Broadcasting and Recording The CBSO'S r￿OrdIng activities included: Six concerts recorded for broadcast on BBC Radio 3; A BBC Prom concert with Kazuki Yamada which was broadcast live on BBC4; A BBC Prom concert with Michael Seal which was broadcast live on BBC TV and BBC4; The CBSO continuing its recording project with Chandos and Ed Gardner of the music of Schubert in the Birmingham Town Hall The recording and streaming of its Relaxed Concerts The CBSO'S Choruses The CBSO'S family of Choruses have worked hard over the 21Y23/24 financial year to produce a huge range of concerts and activities. The CBSO Chorus, Children's Chorus, and Youth Chorus helped launch the 2023/24 season on Thu 27 April 2023 with Kazuki Yamada performing orffs Carmina Burana. Members of the CBSO Chorus also joined the Orchestre Philharmonique de Monte Carlo in June 2023 to perform the work in Monte Carlo. The CBSO Chorus, Children's Chorus, and Youth Chorus then repeated their epic April programme at the BBC Proms in septernb￿ 2023. CBSO SO Vocal, the orchestra's Community choir, enjoyed a range of performances and workshops across the year, including sessions with internationally renowned baritone Davone Tines in July 2023, and the Halle Ancoats Choir in January 2024. The 2ff23/24 season opened in September 2023 with CBSO Chorus joining Kazuki and the orchestra once again, this time to perform Verdi's Requiem. The 21Y23/24 season marked two important anniversaries at the CBSO.. Simon Halsey's 40 anniversary as Choral Director, and the CBSO'S 50h anniversary since its first concert The CBSO celebrated Simon Halsey's 4(Y' anniversary on 30 November 2023 with a concert featuring the CBSO Chorus Children's Chorus, and Youth Chorus. Learning & Engagement Activities Across the 2023/24 Financial Year, the CBSO had over 43,000 interactions with its Learning & Engagement programme, both live arKI digitally. September 2023 saw the opening of ShireLand CBSO Academy, the UK'S first state-secondary school opened in partnership with a professional orchestra. Working collaboratively with the Shireland Collegiate Academy Trust and SIPS, Sandwell's Music Education Hub, the CBSO provides a range of worl&class music performance and learning opportunities at the s¢hooL including masterclasses and performances from CBSO musicians and its visiting artists. With150 students at the school, each receiving free vocal or instrumental tuition, the CBSO hopes to radically increase the number of students studying music to GCSE level or equivalent as students progress through the years. As the school continues to grow, the CBSO hopes to have 870 students by 2028 when the school is fuiL The CBSO'S Youth Orchestra met in July 2023 and February 2024. each time led by Michael Seal in rehearsals. Michael Seal conducted the July 2023 concert, and the February 2024 concert was conducted Page10 City of Birmingham Symphony Orchestra REPORT OF THE TRUSTEES For the year ended 31 March 2024 by Jac van Steen arKI directed by theatre director Tom Morris, WPK) worked closely with the orchestra duringthe year. The CBSO welcomed another cohort of exceptional early-career musicians from under-represented backgrounds in its Career Accelerator programme. devised in partnership with Black Lives in Music, and continued to offer a range of tslent development programmes in partnership with the Royal Birmingham Conservatoire and University of Birmingham. The CBSO'S annual s¢h¢)oLs' concerts in February and March 2024 saw a record number of young people interacting with the CBSO:11,000 children saw the orchestra knve in its KS1, KS2, and KS3 concerts, with a further 700 joining at the CBSO Centre for its Relaxed Concerts, $￿IfiCallY designed for young people with Special Educational Needs. A further10,600 young people from across the UK then watched the online stream of the Relaxed Con¢erL Alongside a range of the CBSO'S long-standing programme& including Notelets concerts for (>5 year olds, and Cuppa Concerts for those living with Dementia, the CBSO began a three-year programme with local schools entitled 'Climate Funkl,. The programme is supported by the JABBS Foundation and brings together science and music to create new pieces based around the Climate. As ever, the stsff, musicians, and trustees at the orchestra are grateful to the many SUPF)Orters that help it continue to deliver the work across its Learning & Engagement programm Volunteers The charity relies on a significant number of volunteers who. as well as performing in its world class choruses, also support the administrative staff with marketing, research and other duties. All of the CBSO'S trustees act in a voluntsry capacity. As well as fulfilling their Board duties they help with the fundraising activities of the charity and offer support to the senior management team, stsff, and players. Financial Review The results for the year to 31 March 2024 and the preceding financial year are set out in the Statement of Financial Activities on page 2& In summary, income was £IO.Om {slightly less from grants, but more was generated from endowment income; more revenue was generated from Birmingham and UK concert activity and promotions but less from overseas touring; a little less was raised from donations, but assets received as a gift mean that overall this was up from prior yearl. Expenditure was a1.5m (morewas spent on raising funds, but less on overseas engagements) , so this was slightly lower than the prior year). This would have reported a loss of £1.4m, but Orchestra Tax Relief, together with actuarial gains mean a net favourable movement in funds of £1.5m. The net financial result for the year was a surplus of £1.5m of which £0.4m retated to actuarial movement on the Defined Benefit Pension Scheme {2023: £2.4m of which £22m related to actuarial movement). Total income for the year was £IO.Om12023: £93m). The principal funding sources of the charity in the year were: Revenue grant income from Arts Council England of £2.2m and £0.6m from Birmingham City Council, both of which showed level funding compared with the previous year. Earned income of £3.6m12023: £4.Om), including income generated from ticket sales for Symphony Hall Concerts and fees from orchestral touring in the UK and overseas £3.Im of sponsorship and donations received from trusts, individuals, arKI corp)rate supporters (2023: £2.5ml, including gifted musical instrument assets Page11 City of Birmingham Symphony Orchestra REPORT OF THE TRUSTEES For the year ended 31 March 2024 A full analysis of expenditure on charitable activities is given in M)te 6. Totsl expenditure for the year was £11.5m (2023: £11.8ml. The charity continues to rely on the long-term benefit of Orchestra Tax Relief IOTRI, which alongside the valuable support of itsdonors and sponsors helps to sustsin the standard and breadth of the CBSO'S work OTR is the government initiative for instrumental groups where the recipient organisation receives a payment from HMRC equal to a percentsge of its production costs &spite being called 'Orchestra Tax Relief,. As the charity puts on eligible performance4 It submits a claim to HMRC each year for the payment towards costs. There was a small reduction in the Defined Benefit Pension Scheme liability to £4.8m12023.. £52ml. The main positive impact on this balance sheet movementsince tast year is the change in market conditions over the year- bond yields have increased over the period, resulting in a higher discount rate and a lower liability value, together with Contributions paid to the Scheme by the Company, net of expenses paid out. Furthermore, the investment return achieved on the Scheme's assets over the period was higher than the discount rate used last year. This was p*tly offset by inflation experienced, and future expected inflation increases, which has increased the value placed on the liabilitie& With a deficit recovery plan that runs to April 2034 the ongoing funding of this Scheme will continue to be a significant financial cost for the charity for many years to come. Plans for Future Periods As part of its ongoing sustsinability planning, and to support and inform its fundraising activities and public funding grant applications, the CBSO Board maintains a robust strategic business planning cycle. It previously submitted plans for 2023-2026 with Arts Council England IACEI as part of its agreed National Portfolio funding for that period. These plans are strongly informed by ACE'S strategy Let's Create, with a focus on community activities, ctrcreation and interaction with audiences, and the then government's priorities around levelling up for culture. Within this contert the new CEO has embar*ed on a period of strategic review, which has resulted in a draft Vision Ststement for the Orchestra which will now evolve towards a new business plan 2025-2029. The Vision, as ststed, is to create musi¢ that brings wnnection, inspiration and joy to the people of Birmingham, the West Midtands and beyot Five resolutions within this Vision are: To share exceptional music and incredible experiences, liviro up to and building the regional national, and international reputstion of the CBSO. 2 To welcome audiences, artists, and stsff from every wmmunity in Birmingham and beyond to everything we do. 3 To collaborate and share creative opportunities across the many communities in the diverse Cityof Birmingham, with the aim of driving real social change and expanding the talent pipeline into the creative industries. 4 To celebrate the presence, personality and individuality of the CBSO players, choirs, youth ensembles, conductors, stsff, participants, and audience& 5 To be united and inspired by the belief that a 21st century symphony or¢Pestra is a uniquely powerful and eloquent vehicle with which to achieve these things Page12 - - - - - - - - - - - - - - - - - - - City of Birmingham Symphony Orchestra REPORT OF THE TRUSTEES For the year ended 31 March 2024 A thre&year commitment from the JABBS Foundation to support a Climate project in schoots Culminating in a performance in Symphony Hall in 202&. Two new corporate supporters in Sofa's and Stuff and DLA Piper; £1.3m raised from individuals, including memberships to support some of the following projects: Youth Orchestra: The CBSO'S Artistic programming through Keynote Concerts and the artistic vision; Project Remi Leaders Violin AppeaL Fitness to work; Shireland CBSO Academy. None of this would have been possible without the CBSO irKlividual donors. trusts and foundations and corporates who have so generously SUPFK)rted the CBSO- the CBSO therefore extends its gratitude. This year a particular thank you needs to go to the CBSO Development Trust who have supported the CBSO with funds totalling £474k This was the first grant given since Covid, due to the level of government support through the pandemic and was higher than its previous annual grants. In addition. the CBSO Development Trust gave a further generous gift of £100,000 to support the CBSO'S new Vision - again, the CBSO extends its gratitude for this. To ensure that donors are at heart of its fundraising the CBSO voluntarily subscribes to the Fundraising Regulator and continues to adhere to the Regulator's Code of Fundraising Practice. The CBSO'S Gift Acceptance policy is reviewed annually by the Audit & Risk Committee. This F)olicy, which is based on Charity Commission guidelines, sets out the procedure for a￿eptIng gifts from donors and the rep)rting and use of such donations. The CBSO is pleased to report that in the2023/24 financial year there were no complaints to the charity about its fundraising work Much of the orchestra's revenue comes from ticket buyers and donors whose relationships with the CBSO have developed over several decades. The CBSO tskes particular care to maintsin these relationships by avoiding being unreasonably persistent or placing undue pressure on potential donors to give money. The CBSO.. Places 'respect' at the heart of its Fundraising Strategy which is reviewed annually and shared with CBSO Senior Management Team and the Board of Trustees and informs the day-to-day work of the team; Ensures procedures and systems are in place to avoid making persistent direct marketing or fac&to- face requests of the same individual for supportr, Excludes individuals who have asked not to receive furKlraising information from relevant communications- whether directly or via the Fundraising Preference Servic Ensures a high proportion of the money required is in place before each financial year begins - either through donations received or through expected renewals from regular supporters, ensuring that communications with potential donors can tske place without pressure to secure an immediate gifL Direct fundraising expenditure was incurred totalling £124k in 2023/24 (£75k in 2022/23) but with support costs, this was £666k in 2023124 {£411k in 2022/23). Risk Management The trUSt￿S are aware of the need to assess the risks faced by the charity and respond in such a way as to manage those risks appropriately. A Risk Register is maintained in which risks are scored for probability and impact and appropriate risk management strategies are estsblished. Individual senior managers and the Audit & Risk Committee are responsible for monitoring the register, which is formally reviewed by the charity's Board on a regular basis. Page14 City of Birmingham Symphony Orchestra REPORT OF THE TRUSTEES For the year ended 31 March 2024 The trustees consider that the major risks facing the charity and as d￿Urnented on the Register as at the year*nd are: Further cuts in public funding and a failure to achieve or maintsin financial stsbility, together with cashflow difficulties caused by tsx credit delays Negative critical and editorial coverage, and social media content Failure to fulfil commitments to the ShireLand CBSO Academy. Environmentsl impact and failure to achieve a sustainable programme; Loss of IT network or data including digital & online fraud; Significant increase in the deficit of the CBSO Defined Benefit Pension S¢heffE. These and all other major risks are constsntly revieKed, and appropriate corrective action is taken by members of the Senior Management Team. For example, financial Kpls are monitored on a regular basis and include regular management accounts which are reviewed against budgeL cashflow forecasts, monitoring of the reserves positiory and reporting of ticket sales and ticket capacity. Negative media is mitigated by maintaining excellent, proactive relationships (through appointed agencaes) with journalists and key stakeholders. There is open dialogue with Shireland CBSO Academy including long-term planning for financial commitments. The CBSO is continually seeking creative, process, and systemic change opportunities to support a more sustainable programmo Recent migration to Cloud back-up of services and regular Cyber awareness training is in place There are regular liaison meetings with the Board of the CBSO Defined Benefit Pension Scheme to consider its position. In addition to the above, the CBSO has a strong system of internal control and comprehensive management reporting processes which includes- A robust strategic ptanniThJ and annual budgeting system, which is approved and reviewed by the trustees Regular reviews by the trustees of financial rep)rts which monitor financial performance against approved budgevforecast and prior period., Consideration of all financial issues by the Audit & Risk Committee and subsequent feedback to the trustee¥ A completion of an annual review of Internal Financial Controls identifying compliance issues and proactively responding: Formal limits on staff members, ability to authorise expenditure: Segregation of duties amoThJst members of staff in so far as it is possibl& Reserves In accordance with best practice and Charity Commission guidance, the charity maintsins free reserves in order to provide for contingencies that may arise in the future. For the purposes of this policy the trustees define free reserves to be the general unrestricted resepie. The charity's overall reserves policy is unchanged and sets a tsrget range for free reserves of between three to six months, core costs. This target has been set at a level which in the trustees, opinion would allow them to withstand any fluctuations in trading conditions or, in extreme circumstances, manage an orderly wind down of the orchestra's activitie& On this basis the tsrget range for free reserves is between £1.6m and £32m. The level of free reseprfes increased during the year to £4.6m (2023: £3.4m),' the tsrgeted reserves have therefore been exceeded This is the level of general unrestricted reserves before deducting the pension scheme liability. The recognition of the DefirEd Benefit Scheme pension liability under FRS102 continues to have a significant effect on the reported unrestricted reserves of the charity. This liability is updated annually to Page15 City of Birmingham Symphony Orchestra REPORT OF THE TRUSTEES For the year ended 31 March 2024 reflect market conditions and other actuarial assumptions a￿1 this year showed a modest decrease to £4.8m12023.. £5.2ml. Although this is a significant figure it d￿$ not mean that an immediate liability for this amount becomes payable, nor that there will be any short-term cashflow impact for the charity. The level of annual contributions required to support the Scheme is determined by a triennial actuarial valuation. The charity and Pension Scheme commissioned an April 2024 valuation, and the previously reed recovery period end date of December 2034 may be maintained without any significant increase in the level of annual deficit contributions required from the CBSO. The level of free reserves after deducting the pension scheme liability moved to a net p)sition of1£02m) from1£1.8ml. Investment Policy The charity's ststed objective is that the real value of the assets arKI the income derived from them be maintsined and enhanced over the long term by investment in cash and other suitsble investments in line with its future business plans and the annual bwjget that is approved by the Trustee Board. The charity's investments have been held in short term cash dep)sits with a major UK bank The allocation of surplus cash and the overall charity investment policy is reviewed by the Audit & Risk Committee on an annual basis. In the context of guidance issued by the Charity Commission and following the appropriate assessments the CBSO trustees have instructed that the charity's investments should be managed on a mediunFIow risk basi& The trustees are happy thatthe performance of investments is acceptsble and in line with expected returns on these investments. Public Funding and Going Concern The charity is supported by grant funding bodies. Revenue grant income from this source amounted to £2.8m representing 28Wo12023.. £2.8m, representing 30010) of the charity's totsl income. Annual revenue grants from Arts Council Engtand are secured up to 31 March 2026, at £2.2m. Orchestra Tax Relief continues to be of significant benefit to the CBSO, with the increased rate of 500/0 secured up 31 March 2025, arKI 45% thereafter. Birmingham City Council IBCCI had agreed its overall arts budget up to 31 March 2026 and CBSO'S share of this arts budget was continued at a level of £0.6m for 2023/24. However, fr)Ilowing the se¢tion114 notice and subsequent announcements of cuts to arts funding by BCC. CBSO have received confirmation that the grant will be reduced by 50010 into 2024/25 {£0.3ml and then to £nil by 2025/26. The Trustees have assessed the going con￿rn position of the charity for the period to 31 March 2026. Apart from its public funding, the CBSO has a broad range of other income sources, and it is not critically dependent on any other single organisation for funding. A number of sponsorship and other funding agreements are in place which run for more than years after the balance sheet date. In addition to performances at Symphony Hall and Town Hall in Birmingham. there is a significant number of engagements planned into 2024/25 and beyond. The availability of potentially advanced payment profiling of ACE grant and the offer from the CBSO Development Trust to advance endowment funding of the year ensure the cashflow for the charity remains acceptable. Despite the challenging climate, as the charity has an improved level of general reserves, an acceptable cash batance {subject to the abovel the benefit of Orchestra Tax Relief as well as other Page16 City of Birmingham Symphony Orchestra REPORT OF THE TRUSTEES For the year ended 31 March 2024 returning sources of income and the continued support of its major funders and the CBSO Development Trus( the trustees Consider the going Concern basis to still be appropriate for the preparation of these financial statements. Equality, Diversity & Inclusion (EDIJ Over the last year, the CBSO have been working to embed EDI further into its programme, its culture, and its forward plans. The CBSO'S EDI Plan has been reviewed by the Senior Management Team and will be refreshed during the 2024/25 year and will align with its commitments as part of its 2023-2026 Arts Council England National Portfolio application. As reported before. one of the CBSO key priorities is increased diversity and participation in musical activities across Birmingham and the West Midlands, ensuring that everyone in the region has the opportunity to experience the work of the CBSO, regardl￿$ of age. background or financial means. The charity's activities in this regard are also informed by the priorities of its key public funder - ie the Arts Council Engtand. With this in mind, a Community Boardwas convened during the year including representation from across Birmingham. Public Benefit In considering the strategies and policies of the charity the trustees have had due regard to the public benefit guidance published by the Charity Commission, in accordance with the Charities Act 2011. The charity continues to champion education, learning and audien¢e/ community engagement as key priorities and to set out appropriate strategies and activities to enable it to deliver against its objectives in this area. Page17 City of Birmingham Symphony Orchestra REPORT OF THE TRUSTEES For the year ended 31 March 2024 Reference and Administration details Charity Registration number.. Company Registration number: Registered Office.. 506276 01262018 CBSO Centre, Berkley Street, Birmingham, B12LF Advisers Auditors Bankers Solicitors RSM UK Audit LLP HSBC Bank plc Shakespeare Martineau Marsh Limited 103 Colmore Row, Birmingham, 83 3AG 130. New Street, Birmingham, B2 4JU No. I Colmore Square, Birmingham, B4 6AA 6° Iloor, 4 Brindleyptace, Birmingham, B12lQ Insurance Brokers The directors of the charitable company (the charity) are its trustees for the purpose of charity law. The trustees and officers serving during the year and since the year end are as follovts: Trustees Gurpreet Bhatia Timothy Birchall ' David Burbidge CBE, DL # Cllr Liz Clements Helen Edgar. Jane Fielding # Sir Mark Grundy Lord Tony Hall # Andrew Herbert- Emily Ingram Sundash Jassi ' Chris Loughran DL # Julia Parke-Robinson David Roper # Cllr Darius Sandhu Catherine Wall ' {Deputy Chair) {resigrEd15 May 20231 {Chairl (resigned 20 November 20231 {Deputy Chair) (appointed 22 July20241 (Chair) (appointed 20 NOVem￿r 2023) {appointed15 May 2023) {Deputy Chairl {resigrEd 8 November 20231 Member of: ' Audit & Risk Committee, # Nominations & Remuneration Committee, - Orchestra Member Senior Management Team Emma Bunting Stephen Maddock OBE Sally Munday Graham Sibley Beki Smith Tom Spurgin Emma Stenning Claire Tilt Malcolm Witson Senior Music Officers Simon Halsey CBE Kazuki Yamada Director of Finance & Resources (resigned 30 June 2023) Chief Executive (resigned 27 April 20231 Director of Finance & Resources lappointed11 September 20231 Director of Orchestra Operations {appointed 31 August 2023) Director of Audiences Creative Director - Learning & Engagement Chief Executive (appointed 3 April 20231 Director of Development Interim Director of Concerts (resigned 27 October 20231 Chorus Director Music Dire¢tor11 May 2024) Chief Conductor and Artistic Advisor127 April 2023 to 30 April 20241 Page18 City of Birmingham Symphony Orchestra REPORT OF THE TRUSTEES For the year ended 31 March 2024 Structure, Management and Governance Governing Document City of Birmingham Symphony Orchestra ICBSO) is a company limited by guarantee governed by its Articles of Association dated 23 July 2015. It is registered as a charity with the Charity Commission. Anyone over the age of18 can become a member, and there are currently1,195 members, of which 571 are voting members, each of whom agr￿S to contribute a sum not exceeding £1 in the event of the charity being wound up. Organisation The Board of Trustees administers the Charity. The Board meets around six times a year to review strategy and corporate governance and to approve and monitor performance against annual budgets and plans. A recent review of its governance practices concluded that the CBSO'S governance arrangements are broadly well designed and represent good practice. There are no significant weaknesses or diversions from The Code. There are two formally constituted Board committees each of which includes a minimum of three suitsbly qualified trustees. The Audit & Risk Committee assists the Board by making recommendations in the areas of risk assessment/ managemen( audit & internal Control, budgets and longer-term plans and by reviewing performance against the objectives set out in the approved budget and operational plans. The Nominations & Remuneration Committee advises the Board on the operation and effective discharge of its corForate governance responsibilities and oversees the performance and appointment of all elected trustees. Additionally, an Artistic Forum. which has a wide membership including trustees and representstives of all areas of the charity's artistic activiti￿ metthroughout the year to Consider artistic plans and ensure that the charity's mission is being maintained at the highest possible leveL A Chief Executive is appointed by the trustees and together with the other members of the senior management team manages the da*to-day operations of the charity. Appointment of Trustees Most trustees are appointed by the Board, with reference to a skills audit and on the recommendation of the Nominations & Remuneration Committee. All trustees nominated through this process are subject to ratification by members at the Annual General Meeting. In the recruitment of new trustees, the charity seeks to promote an appropriate balance of age, gender and ethnicity so that the overall profile of the Board becomes more representative of the communities that it serves. There are four additional trustees, two of whom are nominated by Birmingham City Council and two by the players. Trustees nominated in this way are not subject to members, ratification. Trustee Induction and Training New trustees undergo ￿ induction to brief them on their legal obligations under charity and company law, the content of the Articles of Association. the committee structure and decision-making processes, and the mission, budget and financial performance of the charity. During the irKluction process they meet key employees and other trustees. Throughout their term trustees are provided wth regular updates on their duties as a trust￿ and general charity governance. They are also encouraged to: broaden their understanding of the charity's activities by spending time with key staff, attending ¢on¢erts/other events and participating in project and other working groups., attend appropriate external training which will assist tPEm in carryiro out their duties Page19 City of Birmingham Symphony Orchestra REPORT OF THE TRUSTEES For the year ended 31 March 2024 Trustee Liability Insurance The charity holds Trustee Liability insurance on behalf of its Directors and Officers at a cost of Q3,185 {2023: £11,200). Paypolicy for senior staff The board of trustees and the senior management team comprise the key management personnel of the charity in charge of directing and Controlling, running and operating the CBSO on a day-to-day basis. All trustees give up their time freely and no trustee r￿e1Ved remuneration in relation to their role as a trustee, nor Claimed any expenses in the year12023: nill. Detsils of any trustetrreiated paty transactions are disclosed in note18 to the accounts. The pay of the senior management team is reviewed annually and normally increased in accordance with the annual pay award made to all of the charity's other administrative staff in April of each year. Benchmarking of sataries is carried out as required and adjustments made where necessary to ensure parity with similar roles in the orchestral sector and/or comparable local organisations or charities Trustees, responsibilities in relation to the financial statements The trustees (who are also directors of Cty of Birmingham Symphony Orchestra) are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted A￿oUntIng 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 of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period. In preparing these financial ststements. the trustees are required to: select suitable accounting policies and then apply them Consistently observe the methods and principles in the Charities SORP make judgments 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 ststements, and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business The trustees are responsible for keeping proper 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 ststements comply with the Companies Act 20C6. They are also responsible for safeguarding the assets of the charitsble Company arKI hence for tsking reasonable steps for the prevention and det￿tion of fraud and other irregularities. The trustees are also resFK)nsible for the maintenance and integrity of the corFKirate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial ststements may differ from legislation in other jurisdictions. Page20 City of Birmingham Symphony Orchestra REPORT OF THE TRUSTEES For the year ended 31 March 2024 Statement as to disclosure of information to auditors The trustees who were in office on the date of approval of these financial ststements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. Each of the trustees has confirmed that they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information arKI to estsblish that it has been communicated to the auditor. Auditors A resolution will be proposed at the Annual General Meeting in relation to the appointment of auditors to the charity for the ensuing year. A¢knowledgements The Board of the CBSO would like to express its deep appreciation to the large number of people and organisations that support the activities of the charity. Primary amongst these are: CBSO'S major donors, benefactors legators, circle supp)rters, patrons and friends The charity's corporate members and supporters; Trusts and Foundations which generously support all aspects of its work Members and supporters of the CBSO Development Trust The Board is grateful for the vital ongoing and exceptional support of the charity's public funders, Arts Council England arKI, for the 2023/24 year, Birmingham City Coun¢iL The Board is apPr￿latiVe of the deep commitment of the orchestral musicians, administrative staff and volunteers who help to maintain its standing as a world-class orchestra. This report, incorporating the Strategic ReF)ort was approved by the trustees on 28 November 2024. By order of the trustees Lord Tony Hall {Chairl Page 21 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF crry OF BIRMINGHAM SYMPHONY ORCHESTRA Independent Auditor's Report Opinion We have audited the financial ststements of City of Birmingham Symphony Orchestra (the '¢haritable company,) for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial ststements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Stsndards, including FRS102"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 stste of the charitsble company's affairs as at 31 March 2024 and of its incoming resources and application of resource& 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 requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Stsndards on Auditing {UKI IISAS {UKI) and applicable law. Our responsibilities under those stsndards 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 obtsined is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial ststements. 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 resFonsibilities of the trustees with respect to going Concern are described in the relevant sections of this reporL Other information The other information comprises the information included in the Annual Rep)rt 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 d￿$ not Cover the other information and, except to the extent otherwise explicitly stated in our repo¢ 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 ststements 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 this gives rise to a material misstatement in Page 22 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF crry OF BIRMINGHAM SYMPHONY ORCHESTRA 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 rep)rt that fa¢L 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 ReFQrt of the Trustees, which includes the Dire¢tors' Report and the Strategic Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the finarrial ststements,. and the Directors, Report and the Strategic Report included within the Report of the Trustees have 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 charttable company and its environment obtained in the course of the audit, we have not identified material misststements in the Directors, Report or the Strategic Rep)rt included within the Report ofthe Trustee& 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 kepc 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 Ststement of Trustees, resp)nsibilities set out on page 20, the trustees (who are also the directors of the charitsble company for the purp)ses 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 misstatemenL whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitsble 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 Charitsble 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 obtsin reasonable assurance ab)ut 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 hKJh level of assurance. but is not a guarantee that an audit conducted in accordance with ISAS IUKI 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 tsken on the basis of these financial statements. Page 23 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF crry OF BIRMINGHAM SYMPHONY ORCHESTRA The extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities are instsnces of non-compliance with iavts and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instsnces of noTrcompliance with other Laws and regulations that may have a material effect on the financial statements, and to resp)nd appropriately to identified or suspected non-compliance with laws and regutations identified during the audit In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud. to obtsin sufficient appropriate audit evidence regarding the assessed risks of material misststement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. However, it is the primary responsibility of managemen( with oversight of those Charged with governance, to ensure that the entitys operations are conducted in accordance with the provisions of taws and regulations and for the prevention and detection of fraud. In identifying and assessing risks of material misststement in respect of irregularities, including fraud, the audit engagement team.. obtained an understanding of the nature of the sector. including the legal and regulatory frameworks that the charitable company operates in and how the charitsble company is complying with the legal and regulatory frameworks; inquired of management, and those Charged with gOVerna￿e, about their own identification and assessment of the risks of irregularities, including any known actuaL SUSFected or alleged instsnces of fraud., di￿U$Sed matters alx)ut norrfomplian¢e with laws a￿1 regulations and how fraud might occur including assessment of how and where the financial ststements may be susceptible to fraud. As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS102, Charities SORP {FRS1021. Companies Act 2006, Charities Act 2011, the charitable company's governing d￿UMent tax legistation and Charities {Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial ststements including the Trustees, ReporL remaining alert to new or unusual transactions which may not be in accordance with the governing documents, inspecting Correspondence with local tax authorities and evaluating advice received from external advisors The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to the General Dats Protection Regulation (GDPR) and employment law, including the Employment Rights A¢t1996 arKI Employment Relations Act1999. We performed audit procedures to inquire of management and those charged with governance whether the charitable company is in compliance with these law and regulations. The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misststement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates. A further description of our resp)nsibilities for the audit of the financial ststements is located on the Financial ReF)Orting Council's website at htt www.frc.or auditorsres nsibilities This description forms part of our auditor's report Page 24 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF crry OF BIRMINGHAM SYMPHONY ORCHESTRA Use of our report This report is made solely to the charitable company's members, as a t￿ly, in a￿ordance with Chapter 3 of Part16 of the Companies Act 2006. Our audit work has been undertaken so that we might stste 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 taw, 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 reporL or for the opinions we have form&J. Arjna gp6n56r-hfay Anna Spencer-Gray (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants 103 Colmore Row Birmingham B3 3AG Date 03112124 Page 25 City of Birmingham Symphony Orchestra STATEMENT OF FINANCIAL ACTIVITIES {including income and expenditure account) For the year ended 31 March 2024 ststement of Financial Activities {including income and expenditure account) Unrestricted funds 2024 £'ooo Restricted Total funds fvnds 2024 £'ooo Total funds 2023 £'ooo 2024 £'ooo Notes INCOME FROM.. Voluntary income Donations & Legacies Grant Income 2,462 2,829 656 3,M8 2,829 2,482 2,839 Charitsble Activities Investments 152 3,556 581 4,009 581 TOTAL 9276 808 10,084 9,332 EXPENDITURE ON.. Raising Funds Charitable Activities 666 9,854 10,520 666 10,662 11328 808 11,356 11.767 TOTAL 808 NEf EXPENDITURE FOR THE YEAR BEFORETAX Tax receivable Transfers between funds Other recognised gains/ (losses): Actuarial gain on defined benefit pension scheme 0244) (1244) (2,435) 10 15&16 2,423 198 2,423 2,614 11981 14 281 281 2,189 NET MOVEMENT IN FUNDS 1,658 (198) 1A60 2,368 RECONCILIATION OF FUNDS Fund balances brought forward FUND BALANCES CARRIED FORWARD 11,8321 3,003 1,171 {1,1971 (174) 2￿05 2,631 1,171 All income and expenditure and the resulting net movement in funds arise from continuing operations. There are no recognised gains or losses other than the net movement in furKls for the year. Page 26 City of Birmingham Symphony Orchestra BALANCE SHEET 31 March 2024 Company Registration No. 01262018 Balance Sheet 2024 £'ooo 2024 £'ooo 2023 £'ooo 2023 £'ooo Notes FIXED ASSETS Tangible assets CURRENT ASSETS Stock and Work in Progress Debtors Cash at bank and in hand 11 5809 3204 12 5920 265 5,316 454 &186 5,771 CREDITORS: Amounts falling due within one year (2569) (2,602) NET CURRENT ASSETS 3,617 3,169 NET ASSETS (excluding Pension Liability) 7,426 6,373 DEFINED BENEFIT PENSION SCHEME LIABILITY (4,795) (5,2021 TOTAL NET ASSErs 1631 1,171 THE FUNDS OFTHE CHARITY RESTRICTED FUNDS UNRESTRICTED FUNDS.. General reserve Pension reserve 15 2,805 3,003 16 16 4,621 14,795) 3,370 (5202) (174) {1,8321 TOTAL FUNDS 1631 1,171 The financial ststements on pages 26 to 42 were approved by the board of dir￿torS and authorised for issue on 28 November 2024 and are signed on its behalf by: 531 Lord Tony Hall Chair Sundash Jassi Trustee Page27 City of Birmingham Symphony Orchestra STATEMENT OF CASHFLOWS For the year ended 31 March 2024 ststement of Cashfiows 2024 £'ooo 2023 £'ooo Cash flows from operating activities: Cash used in operating activities (742) (3,035) Cash flows from investing activities: Interest and endowments receivable Purchase of property, plant and equipment Net cash provided by/ (used in) investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 581 (28) 553 (51) (49} (189) 454 (3,084) 3,538 454 265 Reconciliation of net expenditure to net cash flow from operating activities Net expenditure for the year Tax receivable Interest and endowments receivable Loss on disposal of property, ptant and equipment Depreciation charges Gifted instrument assets Defined Benefit Pension Scheme Cecrease in stock and work in progress Increase in debtors Ee¢rease in creditors (1244) 2A23 (581) (2,4351 2,614 (2) 284 (882) (126) 264 (1191 (604) (33) (3,0011 {3571 Net cash used in operating activities (742) (3,035) Analysis of cash and cash equivalents Total cash and cash equivalents 265 454 Page 28 City of Birmingham Symphony Orchestra ACCOUNTING POLICIES For the year ended 31 March 2024 Accounting Policies 1 ACCOU￿rING POLICIES GENERAL INFORMATION City of Birmingham Symphony Orchestra is a charitable company incorporated in England which does not have share capitaL The charity is governed by its Articles of Association. The address of the charity's registered office is CBSO Centre. Berkley Street Birmingham, B12LF. BASIS OF ACCOUNTING 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 {FRS1021 {effective1 January 20151-{Charities SORP IFRS10211, the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS1021 and the Companies Act 2006. Going concern The Trustees have as*ssed the going Concern position of the charity for the period to 31 March 2026. The TrUSt￿S acknowledge the unprecedented level of uncertainty caused by Birmingham City Council's section114 notice; such changing circumstsnces mean that the judgements and estimates required by management are more challenging than under normal circumstsnces. As set out in the going concern section of the Strategic Report, included within the Report of the Trustees. on page16, there has been a positive financial result for the year leading to an increased level of free reserves. The availability of advanced payment profiling of ACE grant and the offer from the CBSO Development Trust to advance endowment funding of the year ensure the ¢ashflow for the charity remains acceptsble. The ongoing support offered by Arts Council England, the benefit of Orchestra Tax Relief as well as other sources of income and the continued support of its major funders and the CBSO Development Trust, mean that the going concern basis remains appropriate for the preparation of these financial ststements. City of Birmingham Symphony Orchestra meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial ststements are set out below. BASES AND DEFINITION OF INCOME AND EXPENDITURE Income Income is ststed net of value added tax and represents amounts invoiced to third parties and amounts receivable from members and donors Income relating to concert performances is recognised wPEn the concert has been performed Income received in respect of future periods is deferred until such time as the charity has entitlement Donations and legacies are recognised when the charity is entitled to the funds. when receipt is probable, and the monetsry value Can be measured reliably. Where the donor imposed or implicit conditions in relation to the timing of expenditure are attached to an income stream, the income is deferred and released over the specified time period Gift aid donations are inclusive of recoverable income tsx Grants of a revenue nature are recognised in the period to which they relate Grants of a capitsl nature are credited to a restricted fund account and released to income over the useful economic life of the asset in line with depreciation Page 29 City of Birmingham Symphony Orchestra ACCOUNTING POLICIES For the year ended 31 March 2024 Interest ￿e1vable 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 Expenditure Expenditure is recognised once there is a legal or Constructive obligation to make a payment to a third paty, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the bllowing activity headings.. Raising funds comprises fundraising costs, which are incurred in raising funds for the charity. Charitable activities include expenditure on the maintenance of the orchestra, marketing and staging concerts, broadcasting and recording. learning & engagement and activities at CBSO Centre. Support Costs Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. These costs have been allocated on a basis consistent with the use of the resources. The bases on which support costs have been allo￿ted are set out in note 7. Donated services The value of services provided by VolUnt￿rS has not b￿n included in these financial statements. Translation of foreign currencies Transactions denominated in foreign currencies are translated at the rate of exchange on the day the transaction occurs. Assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the balance sheet date. Exchange differences are included in the ststement of financial activities. Irrecoverable VA T Irrecoverable VAT is included in general expenses within support costs and app)rtioned to activities on the basis of income. TAXATION The charitable activities of the company are not subject to tsxation,. therefore, no provision for tsxation is required. Orchestra Tax Relief is recognised as and when the receipt is considered probable and can be reasonably measured. FUNCTIONAL CURRENCY The financial statements are presented in sterling, which is also the functional currency of the charity. Figures included in the financial statements are rounded to the nearest £1,000. Page30 City of Birmingham Symphony Orchestra ACCOUNTING POLICIES For the year ended 31 March 2024 FIXED ASSETS AND DEPRECIATION Tangible fixed assets are measured at cost, net of depreciation and any impairment losses. Depreciation is provided on all tangible fixed assets, other than assets under the course of construction, at rates calculated to write off the cost or valuation of each asset to its estimated residual value on a straight-line basis over its expected useful life, as follows: Long term leasehold propety TechnicaL stsge & musical equipment Plan( fixtures, computers & motor vehicles Works of Art 20- 50 years 5- 50 years 3-10 years 10 years Individual assets under £2,500 are written off in full in the year of purchas FINANCIAL INSTRUMENTS The charity only has financial assets and financial liabilities of a kn'nd that qualify as basic financial instruments. Basi¢ financial instruments are initially recognised at transaction value and subsequently measured at their settlement valu& TRADE DEBTORS Trade and other debtors which are receivable V*llthin one year are initially recognised at the transaction price and subsequently measured at amorbsed co< being the transaction price less any amounts settled and any impairment losses. TRADE CREDITORS AND LIABILTIES Trade creditors payable within one year are initially measured at the transaction price and subsequently measured at amortised Cosc being the transaction price less any amounts settled. Liabilities are recognised when either a constructive or legal obligation exists. FUND ACCOUNTING Unrestricted funds are available for use at the discretion of the trustees in fijrtherance of the general objectives of the charity and which have not been designated for other purp)ses. Designated funds represent unrestricted funds which have been designated for a SFEcific purpose based on decisions approved by the Board of Trustees. Restricted funds are funds which are to be used in accordance with specific restrictions imp)sed by the donors. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in note15 to the financial statements. RETIREMENT BENEFITS Defined contribution scheme For the defined contribution scheme, the amount Charged to the Ststement of Financial Activities is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments. Page 31 City of Birmingham Symphony Orchestra ACCOUNTING POLICIES For the year ended 31 March 2024 Defined benefit scheme For the defined benefit retirement scheme, the cost of providing benefits is determined using the projected unit credit method. Asset/Liability The net defined benefit liability represents the present value of the defined benefit obligation minus the fair value of scheme assets out of which obligations are to be settled. Any asset resulting from this Calculation is limited to the present value of available refunds or reductions in future contributions to the scheme. The rate used to discount the benefit obligations to their present value is based on market yields for high quality corporate bonds with terms and currencies consistent with those of the benefit obligations. Gains/losses Gains and losses are recognised in the Statement of Financial Activities. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the charity's accounting p)licies, which are described above, the trustees are required to make judgements, estimates and assumptions atKiut the carrying amounts of assets and liabilities that are not readily apparent from other sourc￿. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are rewewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revi*d if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Defined Benefit Pension Scheme Actuarial assumption The present value of the defined benefit pension scheme liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note14, will impact the Carrying amount of the pension liability. Furthermore, a roll forward approach, which projects results from the latest full actuarial valuation performed at 5 April 2021, has been used by the actuary in valuing the pension's liability at 31 March 202415 April 2021 actuarial valuation for pension's liability at 31 March 20231. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability. Orchestra Tax Relief (OTRJ The tsx credit as a result of Orchestra Tax Relief (OTR) is calculated based on an estimate of qualifying expenditure land excluding non44ualifying expenditure) incurred in the financial year. Any changes in the assumptions will affect the value of the credit to be received. Page 32 City of Birmingham Symphony Orchestra NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 Notes to the Financial Statements 2 DONATIONSAND LEGACIES Year ended 31 March 2024 £'ooo 1,484 Year ended 31 March 2023 £'ooo Trusts Donations, Membership and Legacies Sponsorship 1,480 159 3,118 2,482 Income from donations and legacies was £3,118k12023: £2,482k) of which £2,462k was unrestricted (2023: £1394kl, £nil was designated12023: £45k} and £656k was restricted12023.. £1,043k). During the year, a gift of musical instruments from the City of Birmingham Orchestra Endowment Fund ICBOEFI was recognised and this was recorded at a totsl value of £882k and is included within unrestricted income. 3 GRANT INCOME Year ended 31 March 2024 £'ooo 2221 608 Year ended 31 March 2023 £'ooo 2,221 608 10 2,839 Arts Council England grant Birmingham City Council grant Other grants: Job Retention scheme 2,829 All grants were wholly unrestricted in tKith years 4 INCOME FROM CHARrrABLE ACTivrriES Year ended 31 March 2024 £'ooo 1,603 376 1,201 45 249 Year ended 31 March 2023 £'ooo 1,372 Birmingham Concerts and promotions Other UK engagements Overseas engagements Broadcasting and recording Learning & Engagement CBSO Centre income 1,993 142 82 3,556 4,009 Income from charitsble activities was £3,556k12023: £4009k) of which £3,404k was unrestricted (2023: £3,895kl and £152k was restricted12023: £114k). 5 INVESTMENT INCOME Year ended 31 March 2024 £'ooo 575 Year ended 31 March 2023 £'ooo Endowment income Interest receivable 581 Investment income is wholly unrestricted. Page33 City of Birmingham Symphony Orchestra NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 6 ANALYSIS OF TOTAL EXPENDITURE Direct Costs SupFQrt & Governance Costs £'ooo Totsl 2024 Total 2023 £'ooo £'ooo £'ooo RAISING FUNDS: Fundraising expenses CHARITABLE ACTIVITIES: Birmingham concerts and promotions Other UK engagements Overseas engagements Concert marketing and advertising Broadcasting and recording Learning & Engagement CBSO Centre 124 542 666 411 4,407 615 2,394 507 4,914 725 2,722 970 74 976 281 4,490 328 753 70 458 281 4,015 995 279 719 518 SUBTOTAL 8,155 2507 10,662 11,356 TOTAL 8279 11328 11,767 Expenditure on raising funds was £666k12023: £411k) all of which was unrestricted. Expenditure on charitsble activities was £10,662k12023: £11.356k) of which £9.854k was unrestricted {2023: £9,813kl, £nil was designated (2023: £386k) and £808k was restricted12023.. £1,157k). 7 ANALYSIS OF SUPPORT AND GOVERNANCECOSTS The charity identifies the cost of its support functions and the costs which relate to the governance function. These costs are apportioned between the activities of the charity pro rata in line with the basis of usage as noted below: Supp)rt Governance Costs Costs £'ooo £'ooo 208 Totsl 2024 Basis of apportionment £'ooo 1,648 178 224 240 Salaries (including pensions) Rent, rates & service charge Maintenance, buildings & equipment Professional charges Depreciation General expenses Time spent Income Income Income Income Income 178 224 240 475 475 2,601 3,049 8 NEf EXPENDITURE FOR THE YEAR Year ended 31 March 2024 £'ooo Year ended 31 March 2023 £'ooo This is stated after Charging: Auditors, remuneration for audit services for non-audit services Loss on disposal offixed assets Depreciation of tsngible fixed assets 33 26 264 Page34 City of Birmingham Symphony Orchestra NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 9 STAFFCOSTS&TRUSTEE REMUNERATION Year ended 31 March 2024 £'ooo Year ended 31 March 2023 £'ooo Wages and salaries Social security costs Pension costs 3,997 448 188 431 233 5,004 4,633 Pensions costs are allocated to activities in proportion to the related stsffing wsts incurred and are wholly charged to unrestricted funds. The number of employees during the year was as follovts.. Average Headcount Full Time Equivalent 2024 2024 2023 Senior Management Other Office Staff Orchestra 38 35 68 109 35 66 107 32 63 101 M5 The number of employees whose emoluments, excluding pension Contributions but including benefits in kind, were in excess of £60,000 in the year ended 31 March was: 2024 2023 £60,001- £70,000 £100,001- £110,000 The employers, Contribution to the CBSO Group Stskeholder Plan for the above employees was £8,236 {2023: £7,850). The senior management personnel of the charity Compris￿ Chief Executive Offi￿r, the Director of Finance & Resources, Director of Development. Director of Marketing & Communications, Director of Orchestra Operations, and Director of Learning & Engagement The totsl Compensation including national insurance and pension contributions payable to the senior management personnel of the charity was £462,872 {2023: £423,517). The charity benefits greatly from the involvement and enthusiastic support of its many volunteers, details of which are provided in its Trustees Annual Rep)rt In accordance with FRS102 and the Charities SORP {FRS1021, the economic contribution of general volunteers is not recognised in the accounts. Page 35 City of Birmingham Symphony Orchestra NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 The trustees who are members of the orchestra received totsl compensation, including national insurance and pension contributions, totalling £102,34212023: £79244), on the same pay scale as that paid to other playing members in respect of their performance with the orchestra. No extra payments were made for their services as trustees of the charity. All other charity trustees were not paid and/or received any other benefits from employment with the charity in the year12023.. £nill neither were they reimbursed expenses during the year {2023- £nill. A trustee indemnity insurance premium of £14,98812023: £112CK)) was paid in the year. 10 TAXATION The charity is exempt from tax on income and gains falling within section 505 of the Taxes A¢t1988 or section 252 of the Taxation of Chargeable Gains A¢t1992 to the extent that these are applied to its charitable objects. The charity has included a tax credit in respect of Orchestra Tax Relief received/receivable as follows: Year ended 31 March 2024 £'ooo Year ended 31 March 2023 £'ooo Current year relief r￿e1Vable Over provision of prior years, relief 2,389 2,575 39 2,423 2,614 Tax receivable income is wholly unrestricted. Page 36 City of Birmingham Symphony Orchestra NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 11 FIXED ASSErs Long term leasehold property Techni¢a( stsge & musical equipment Pian( fixtures, computers, and motor vehicles £'ooo Work of Art Totsl £'ooo £'ooo £'ooo £'ooo COST At1 April 2023 Additions Disposals At 31 March 2024 4,744 1203 909 01) 2.101 1,Oa3 18 7,048 909 1321 7925 4.744 18 DEPRECIATION At1 April 2023 Charged in the year Disposals At 31 March 2024 2,307 113 805 714 99 18 284 {121 4.116 112) 865 2A20 813 18 NET BOOK VALUE At 31 March 2023 2,437 398 369 3,204 At 31 March 2024 2324 1,236 249 3,809 On15 May 2014, as a condition of the Arts Council England grant towards the refurbishment of the CBSO Centre, the charity executed a 2(kyear legal charge over the building. This charge gives Arts Council England a first legal mortgage over CBSO Centre up to an amount of the £1.32m grant award. During the year, the transfer in of a gift of assets (musical instruments) from the City of Birmingham Orchestra Endowment Fund ICBOEF) was recognised as part of the wind down process of the CBOEF, and this was recorded at a total gross value of £882k 12 DEBTORS Year ended 31 March 2024 £'ooo Year ended 31 March 2023 £'ooo Trade debtors Other debtors Taxation and social security costs Prepayments and accrued inwme 155 201 108 5,456 96 243 4,977 5,920 5,316 Page37 City of Birmingham Symphony Orchestra NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 13 CREDITORS: Amounts falling due within one year Year ended 31 March 2024 £'ooo Year ended 31 March 2023 £'ooo Trade creditors Other creditors Taxation and social security costs Deferred income Accruats 704 256 696 12 24 905 965 755 2,569 2,602 Deferred income: Year ended 31 March 2024 £'ooo Year ended 31 March 2023 £'ooo At1 April 2023 Amount deferred in year Amount released to income earned from charitable activities 905 726 (876) 1,384 452 {9311 At 31 March 2024 755 905 Deferred income consists of monies received lincludirKJ the unrecognised element of a £0.8m legacy which is being recognised equally over a period of eight years in line with the donor's wishes), to support the charity's recovery from Covid-19 and for future education projects and other charitsble activities, Chorus membership fees and rent invoiced in advance. Accruals includes £38,847 {2023: £31,309) of unpaid pension contributions in respect of the Defined Benefit Pension Scheme. 14 PENSION AND SIMILAR OBLIGATIONS An approximate actuarial valuation of the Defined Benefit Scheme was Carried out by a qualified independent actuary as at 31 March 2024. The major financial assumptions used by the actuary were: 2024 4.70010 3250/0 2023 4.90010 3.35010 DI￿Ount rate (0/0 p.a.) Salary increase rate {Wo p.a.) Rate of revaluation in deferment (Q/0 p.a.) CPI max 50/0 p.a. CPI max 2.50/0 p.a. Pension increase rate (% p.a.) RPI, capped at 50/0 p.a. RPI, capped at 30/0 p.a. RPI, capped at 2.5010 p.a. CPI, capped at 3Wo p.a. Price inflation rate 10/0 p.a.) Consumer infiation rate {O/o p.a.) 2.85010 2.85010 2.85010 2.85Wo 3.050/0 2.30010 2.000/0 2.15010 3250/0 3.40010 325010 2.550/0 2250/0 2.30010 3.35010 3.40010 Page 38 City of Birmingham Symphony Orchestra NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 2024 2023 Life expectancy at age 65.. Current pensioners- Men Current pensioners- Women 21.1 23.5 23.9 Future pensioners now 45- Men Future pensioners now 45- Women 22.0 24.5 24.1 Mortality tsble- pre and post-retirement S3PXA with CMI 2020 _ 0.500/0 At the balance sheet date, the fair value ofthe assets of the sCh￿e was made up as follows". 2024 £'ooo 5,180 10,020 260 356 661 235 2023 £'ooo 4,368 10,552 369 243 554 297 Multi-Asset Funds Equities Property Gilts & Hedging Alternatives Cash Total 16,712 16,383 2024 £'ooo 2023 £'ooo Balance sheet: Present value of Scheme liabilities Fair value of Scheme assets (21,507) 16,712 (4,795) (21,5851 16,383 (5,2021 In addition, the trustees held insured annuitie& The value of these annuities has b￿n excluded from the assets and liabilities. Their inclusion would have a neutral effect on the deficit figure as the liability value is exactly matched by the value of the insurance FK)licy held. The employer's best estimate of company contributions to be paid in respect of the Scheme during the financial year ending 31 March 2025 is £489.470 (at 31 March 2023 £466,0001 The scheme does not invest in the employer's own propety or other assets Analysis of the amount charged to the Statement of Financial Activities 2024 £'ooo 1,034 (788) 94 2023 £'ooo 819 (6061 112 Interest on Scheme liabilities Interest on Scheme assets Administration costs Amount charged to operating costs Actuarial gain on Scheme liabilities Actual loss on Scheme as*ts 340 325 (6,9651 4,776 (141) Total expense/ Igain) 59 (1,8641 Totsl return on Scheme assets 928 (4,1701 Page 39 City of Birmingham Symphony Orchestra NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 Changes in the present value of the defined benefit obligation are as follows: 2024 £'ooo 21,585 1,034 (9711 2023 £'ooo 28,760 819 (1,0291 6,965 21,585 Opening defined benefit oblj'gation Interest cost Benefits paid Actuarial Igainl/loss Closing defined benefit obligation 21,508 2024 £'ooo 16,383 788 466 (9ni (941 140 2023 £'ooo 21,250 606 Opening scheme assets Expected return on assets Employer contributions Benefits paid Administration costs Actuarial Iloss)/gain Closing scheme assets (1,0291 {1121 4,776 16,383 16,712 The charity is aware that the Court of Appeal has recently upheld the decision in the Virgin Media vs NTL Pension Trustees 11 Limited case. The CBSO scheme is within the scope of those schemes potentially affected by the case. The decision puts into question the validity of any amendments made in respect of the rules of a ¢ontracted-OUt pension scheme between 6 April1997 and 5 April 2016. The judgment means that some historic amendments affecting s.9{2BI rights could be void if the necessary actuarial Confirmation under s.37 of the Pension Schemes Act1993 was not obtained. The trustees do not believe that there is any evidence that s.37 of the Pension Schemes A¢t1993 was not complied with in terms of obtaining actuarial confirmation. Until further investigations have been completed by the UK Government's Actuary's Department and/or any legislative action taken by the government, the potential impact if any, on the valuation of scheme liabilities remains unknown, and therefore no adjustment has been made in respect of the outcomes of this case. Page40 City of Birmingham Symphony Orchestra NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 15 RESTRICTED FUNDS 1 April 2023 £'ooo 2,537 247 211 Income Expenditure Transfers 31 March 2024 £'ooo 2,453 246 98 £'ooo £'i)00 £'ooo (84) CBSO Centre reserve CBSO Truck reserve Arts Council capital grant Youth Orchestra reserve Education & chorus reserve Charitable activities reserve (113) 152 656 (152) 656 3,003 808 (808) (198) 2,805 l April 2022 £'ooo 2,620 256 355 23 Income Expenditure Transfers 31 March 2023 £'ooo 2,537 247 £'ooo £'ooo (83) (9) (144) (15) CBSO Centre reserve CBSO Truck reserve Arts Council capital grant Youth Orchestra reserve Education & chorus reserve Charitable activities reserve 114 (114) 3,254 1,157 (1,157) (251) 3,003 Name of Restricted Fund CBSO Centre reserve Description, Nature and Purposes of the Fund The CBSO Centre reserve comprises amounts received in grants and used to fund both the initial build and future enhancements of CBSO Centre. The transfer in the year is equivalent to the depreciation charge on the assets. CBSO Truck reserve The Arts Council capital grant represents monies received from Arts Council England to SUPF)Ort the refurbishment of CBSO Centre. The transfer in the year is equivalent to the depreciation charge on theassets. Arts Council Capital grant The Arts Council Capital grant represents monies received from Arts Council England to support the purchase of a new instrument truck. The transfer in the year is equivalent to the depreciation charge on theassets. In line with the terms of these grants, the monies received are shown as separate restricted grants. The transfer in the year is equivalent to the depreciation charge on the assets. Youth Orchestra reserve The Youth Orchestra reserve comprises funds donated by the Midlands Youth Orchestra and a subsequent legacy. to be used in support of the CBSO Youth Orchestra. During the year £nil of the grant was used12023: £15kl. Education & chorus reserve The Education & Chorus reserve represents monies received from Trusts, Foundations arKI Corp)rate sp)nsors to fund the CBSO'S Learning & Engagement work in schools and the wider community. Charitable activities reserve The Charitable activities reseprfe represents monies from Trusts and individual sponsors to support other charitsble activities including large scale concerts and the Music Director and Orchestra Leader positions. Page 41 City of Birmingham Symphony Orchestra NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 16 UNRESTRICTED FUNDS 1 April 2023 Surplus in year Actuarial gains and losses £'ooo Transfers 31 March 2024 £'ooo 3,370 5202 11,8321 £'ooo 1,053 126 £'ooo 198 £'ooo 4,621 4,795 (1741 General reserve Pension reserve 281 1,179 281 198 l April 2022 Surplus in Actuarial gains and losses £'ooo Transfers 31 March 2023 £'ooo 2,718 341 (7,510) (4,451) £'ooo 401 (341) 119 £'ooo 251 £'ooo 3,370 General reserve Designated reserve Pension reserve 2,189 2,189 (5,202) (1,832) 251 17 NEf ASSEfs BY FUND Restricted 2024 £'ooo Unrestricted 2024 £'ooo Totsl 2024 £'ooo Funds are represented by: Fixed Assets Net Current assets Defined benefit pension liability 2,325 1A84 3,137 14,795) (174) 3,809 3,617 (4,7951 2,631 2.805 Restricted 2023 £'ooo Unrestricted 2023 £'ooo Total 2023 £'ooo Funds are represented by.. Fixed Assets Net Current assets Defined benefit pension liabilrty 2,990 13 214 3,156 (5,202) (1,832) 3,204 3,169 (5,202) 1,1 3,003 18 RELATED PARTYTRANSACTIONS The CBSO Pension Trustee Limited. which was incorporated on 22 April 2013, is a wholly owned subsidiary of the charity. The CBSO Pension Trustee Limited acts as the corporate trustee for the charity's defined benefit pension scheme. The registered address of The CBSO Pension Trustee Limited is (3SO Centre, Berkley Street, Birmingham. B12LF. There have been no transactions during the year and thus The CBSO Pension Trustee Limited is not consolidated within these a¢¢ounts. In the year end accounts to 31 March 2024 the net assets of the company were £1. Page 42