2023-05-31-accounts - Malvern Concert Club

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REPORT OF THE TRUSTEES FOR THE YEAR to 31 MAY 2023 1. STRUCTURE Malvern Concert Club is ari unincorporated association, registered with the Charity Commission {no.506329). Its current Constitution was adopted in 2022. For the year 2022123 its nominal address was The Honorary Secretary, 8 Mythe Court, 2 College Road, Great Malvern WR14 3DD. 1.1 Management The Club is administered by a Committee elected by the Club Membership. Committee members are all Trustees, apart from any co-oplees (who may not vote). The following officers were unanimously elected at the 2022 AGM, which was held on 21st July 2022, for 2022-2023.. Chairman John Gregory Simon Payton Roger Usher Bryan Ratcliff Simon Allen Treasurer Secretary Membership Secretary Publicty & Marketing Officer Richard Price was elected to serve on the Committee for three years (to 2025) joining Linda McKinley (2020-23), Janet Hay (2020-2023) and Hilary Winter (2021- 24) 1.2 Procedures The Committee met four times. The Club advertises Committee vacancies (including officer roles) to all its members. Prior to being put forward for election, the Chairman and the Secretary discuss with potential volunteers the functions where their skills might best be used. Committee memberships rotate under the tenns of the Constitution, so new volunteers are needed regularly. All members of the Committee, not just the Officers, are allotted tasks. Newly elected Committee members receive an individual job description setting out their particular duties. They are also advised of their duties as Trustees and how the Club is run, and are made aware of Charity Commission requirements and guidance. All Committee members, including Officers, are unpaid volunteers, and pay membership subscriptions.

PU8LIC BENEFIT The Trustees have had regard to their duty to deliver public benefit in accordan with the guidan issued by the Charity Commission. Throughout its history, with the exception of pandemic lockdown periods, the Club has promoted a range of chamber concerts open to the public as well as to subscription members. Free tickets are available to young people under 18 who accompany a Club member. .n education outreach programme in schools is also pursued.
MEETING THE CLUB'S OBJECTIVES The objects of the Club, as set out in the Constitution, are.. 'to advance the arts, culturB and heritage of music by public education in, and apprpciation of, musiG in all its aspects by any means the tmstees see frt, and in particular by the presentation of professional public chamber music concerts and citals." The Trustees aim to meet the Club's objectives primarily by providing professional chamber music concerts of world-class standard each season for people in the Malvern area and surrounding counties. All concerts are open to the general public. The Trustees believe that rf the Club did not exist there would be very few opportunities for local residents to hear and enjoy live perforManS of such quality. The following artists perfomied in the 120th season (2022-23) in the Forum at Malvern Theatres.. 29th September 2022 27th October 2022 24th November 2022 26thJanuary 2023 23 March 2023 27th April 2023 The Brodsky Quartet Roderick Williams and Susie Allan Trio Wanderer The Piatti Quartet The Calidore Quartet Emma Johnson and friends In addition to the Club's regular series of six subscription concerts, there were two dayiime recitals.. 12th February 2023 14th April 2023 Elisabeth Brauss, piano, in the Forum Toby White, cello. at Elmslie House, Malvern The Club maintains an informative website, which continued to be updated during the year, and also maintains a Fabook presence.
MEMBERSHIP Following the exteiisive disruption cause by Covid, this season has seen a sustained return to normality that had begun with season 2021-22. There was a welcome increase in membership to 304 members, a rise of 14.3 % on last season's total. Although this is still lower (by around 10 % ) compared to pre-covid membership levels, it is hoped that this trend will continue. With the uplift in membership there was a concomitant increase in cOnrt audience size, with the six Thursday evening conrtS attracting an average audien size of 337.
AWARDS FROM CHARITABLE TRUSTS and SPONSORSHIP Please see paragraph 8.3.
BROADENING OUR RANGE The Club attempts to widen its appeal by promoting dayiime concerts, including a moming at a smaller venue, with coffee and cake included in the ticket price. On again, the event was sold out. In previous years the Club has organised coach trips to classical concerts at Symphony Hall in Birmingham, but this has again not been possible this year and will likely be discontinued unless a volunteer can be found to take on the organisational task.
EDUCATIONALWORK The Outreach Education programme is designed to help young people experience and enjoy music. The Club has support from Severn Arts (WOrSterShire) to help deliver this initiative in schools in the Malvern area. This year Toscana Strings with former Birmingham Royal Ballet dancer, Laura Tye, gave four performances of 'Monkey Puzzle,, their interpretation of the Julia Donaldson story, to Key Stage 1 and Key Stage 2 young people at Primary Schools. Welland and Colwall. In March Pro Anima (Leader Michael Bochmann) came to Christchurch in Malvem for a day. The nine musicians gave workshops to string players at the Chase School and Malvern Parish Primary School. The day ended with a Concert in Christchurch by Pro Anima with contributions from the young string players.
FINANCE The Treasurer is responsible for managing the finances of the Club and for keeping the Trustees informed on financial matters. 8.1 Independent Examination of the Accounts Mr David Fowler FCCA has continued to act as the Independent Examiner of the club's Accounts. The Club is most grateful to him for taking on this role on an entirely voluntary basis, and for providing the Club with valuable advice. 8.2 SORP As in previous years, the Club prepared its accounts in accordan with the appropriate parts of the Charity Commission's Statement of Recommended Practi (SORP}. 8.3 Donations and Legacies The Club receives donations (most of which qualify for Gift Aid) from members and fomier members. The Trustees are most grateful for all donations. A Restricted Account is maintained where a donor stipulates how their legacy is to be spent. In the case of the Kay legacy received in 2021-22, together with additional small sums received in the year to which this Report relates, the restriction is that it is not to be used for day-to-day purposes. The Trustees have identified a number of uses for this account. Interest on Club deposits is divided equally bebNeen the Unrestricted and Restricted Accounts. 8.4 Reserves and Banking The Trustees have a formal ReseNes Policy, which requires that reserves be maintained at a level which ensures that the Club's core activities can continue for al least a year during a period of unforeseen difficulty. The Club manages its reseNes so as to maximise a return on cash commensurate with securrty. On the basis of a cash flow forecast. funds not required in the short tenn are invested on a one-year basis and in two notice accounts, while funds required for immediate transactions are held in a non-interest bearing, but charge- free, current account and an instant aCsS interest-bearing deposit account. The Club keeps deposits with any one financial institution below the £85,000 FSCS limit.

All payments out of Club funds require the separate authorisation of two of the Trustees. arKI the electronic banking aangements are compatible with this requirement. Movements between the Club's bank accounts may be effected by the Treasurer. 8.5 Admlnislratlve Costs All banking is done as far as possible on-line. to minimise administrative costs. In addition. administrative costs are kept to a minimum by communicating with members by email where possible. The general aim is to spend the minimum on overheads commensurate with efficiency and go(xl practi, so that the Club's fvnds can be spent on its prinapal obJ"ectives. 8.6 Budgetlng and Cost Control Budgets are prepared for the current and following year, since COnrt programming is planned with a horizon of two years or more. The Trustees receive regular financial reports of performance against budget. and keep the budgets under ongoing review. making adjustments where necessary. Supplementary infomiation is provided to the Twstees on the financial outcome and attendance figures for each Club o)ncert. Decisions on subscriptions and ticket pricing are made with ference to all this information. 8.7 Insurance The Club has an insurance policy covering the principal insurdble risks identified by the Trustees. induding concert CanlIatIOn, damage to the hired piano and public liability. This is effected through its membership of the specialist organisation, Making Music 9. ADOPTION ofTHE REPORT by the TRUSTEES and DECLARATION We declare. in our capacity as Charity Trustees. that: the Trustee5 have approved the re above" and the Trustees have authorised us to sign it on their behalf. John Gregory Chairnian Roger Usher Secretary Approved by the Trustees on 12 June 2023

Independent Examinerfs Report to the Trustee8 of Malvern Concert Club I report on the accounts of the Club for the year ended 31st May 2023 which are set out on pages 1 to 8. Respective responsibllllle8 of Tnt$ and Examiner The charity's Trustees are responsible for the preparation of the accounts. The charty's Trustees consider that an audit is not required for this year under Section 144(21 of the Charities Act 2011 (Ihe 2011 Act,) and that an independent examination is needed. It is my responsibility". to examine the accounts under Section 145 of the 2011 Act: to folk)w the procedures laKI down in the general Directions gNen by the Charity Commission under Section 145 (5) (b) of the 2011 Act,. and to state whether particular matters have come to my attention Bas18 ol Indep•ndgnt Examlnerfs report Jy examination was carried out in accordance wth the general Direction3 given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual iterns or disclosures in the accounts, and seeking explanations from you as trustees conc8ming any such matters. The procedures undertaken do not provKle all the evidence that woukj be requlred in an audit and consequentty no opinion is given as to whether the accounts present a Irue and fair view, and the report 18 limited to those matters set out in the statement below. Indepond•nt Examlnerfs statsment In connection with my examination. no matter has come to my attèntion.. (1) which gNes me reasonable cause to believe that in any material respect the requirements.. to keep accounting records in accordance with SectK)n 130 of the 2011 Act: and to prepare accounts which accord with the accounts'ng records and comply with the accounting requirements of the 2011 Act have not been met,. or (2) to which, in my opinion, attention should be drawn In order to enable a proper understanding of the accounts to be reached. Signed: Date: %x3 David Fowler FCCA 21 Venns Lane Herefordshire HR1 1DE

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Malvern Concert Club (Charity No. 506329)

Notes forming part of the Financial Statements for the year ended 31 May 2023

[NB: Throughout these Notes the abbreviation MT is used for Malvern Theatres, the principal venue for Club Concerts.]

1. Accounting Policies

Basis of accounting

The financial statements have been prepared on a going concern basis, under the historic cost convention and in according with the Financial Reporting Standard for Smaller Entities (FRSSE). All charities preparing accruals accounts in the UK for reporting periods beginning on or after 1 January 2019 are required to follow the Statement of Recommended Practice (SORP) (FRS 102) second edition.

The Income and Expenditure account for 2022/23 summarises the outcome of the Club’s 120th Season, with any receipts or payments incurred in 2021/22 and accrued/prepaid in the previous year's Balance Sheet. Any receipts and pre-payments relating to 2023/24 and beyond are covered in the 2022/23 Balance Sheet.

The following items of income and expenditure are recorded as wholly received/paid in the year: interest income, Gift Aid, AGM expenses, Making Music subscription (including the Club's insurance premium), payment system charges (PayPal & Zettle). These are explained in more detail under their respective headings below. Were the accruals convention applied to these items, the net effect on the Club's “Unrestricted Income Fund" would be insignificant.

2. Exceptional impacts on the Club’s Programme

In the year 2022/23, the Club’s pattern of income and expenditure reverted fully to normal after the severe impact of Covid on the 2019/20 and 2020/21 seasons. All refunds and credits arising from concert cancellations due to Covid had been cleared prior to the start of the 2022/23 financial year.

Income from Donations and Legacies

3. Legacies

Two further payments were received during the year from the Kay Trust Fund distribution administered by the Charities Aid Foundation, subject to the same conditions as the major payment received in 2020/21.

4. Gift Aid

A Gift Aid claim is submitted to HMRC annually following the close of the financial year. The Gift Aid claim receipt is accounted for as Income in the year

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in which it is received: in 2022/23 this item reflects Gift Aid on eligible donations received in 2021/22.

5. Sales of Donated CDs

For several years the Club has held occasional sales of donated CDs on certain concert evenings to raise money for Club funds. Due to the declining demand for the CD as a recording medium, the Committee has decided to discontinue these sales and is not accepting further CD donations.

6. Subscriptions

From April 2022, subscriptions for 2022/23 were offered on the basis of six (at £90) or seven (at £105) concerts, the latter including advantageously priced admission to the additional Sunday afternoon Concert in February 2023.

As an incentive, new members (who had not been members in the three previous seasons) were offered the facility to buy subscriptions for five, four or three of the six regular concerts at a discount of £10 per concert.

7. Ticket Sales (Regular Concerts)

In 2022/23, this item comprises the income from sales of tickets to nonmembers at the MT Box Office for the concerts put on at MT. This income is net of MT’s advertising commission on all sales and applicable credit card sales charges, both with VAT.

8. Ticket Sales (Extra Concerts)

This Item comprises the revenue from Tickets Sales via MT Box Office (net of charges as in Note 7) for the concert in February 2023.

As the extra concert which the Club puts on a winter Sunday afternoon is now included as a subscription option, there is no separate advance ticket revenue for this concert to be recognised in the Balance Sheet.

In June 2024, the Club will be putting on an additional series of concerts featuring the fifteen String Quartets of Shostakovich, to be played by the Brodsky Quartet, on a cost-sharing basis with the Club. Tickets for the five individual concerts and for the whole series are on sale direct to Club Members and to the general public via MT. Advance ticket sales revenue received by the Club is recognised in the Balance Sheet, and in due course will be brought into the 2024/25 Income and Expenditure statement.

9. Ticket Sales (Daytime Concerts)

This item comprises the revenue from sales of tickets sold by the Club for the concert put on Elmslie House, a venue in Malvern which has a capacity of 80, in April 2023. All seats were sold.

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10. Bank Interest

The Trustees have decided to keep deposits with any one financial institution below the £85k FSCS limit.

The interest rates paid by Nationwide on the Instant Access Deposit Account on balances over £5k throughout the year were as follows:

1 Jun 22 – 4 Jul 22 0.15% 5 Jul 22 – 1 Sep 22 0.20% 2 Sep 22 – 1 Nov 22 0.35% 2 Nov 22 – 23 Nov 22 0.50% 24 Nov 22 – 10 Jan 23 1.00% 11 Jan 23 – 26 Apr 23 1.30% 27 Apr 23 – 31 May 23 1.50%

The amount deposited by the Club in a one year-term account, currently with United Trust Bank, is determined on the basis of a cash flow forecast prepared by the Club Treasurer for the Trustees, taking into account historic flows of income and expenditure. In November 2022 the Trustees agreed to roll over for a further twelve months £85,000, at 3.8%.

For the 95 day and 35 day Notice accounts with Redwood Bank, interest rates were as follows:

95 Day (Annual)

1 Jun 22 – 22 Jun 22 1.15% 23 Jun 22 – 26 Aug 22 1.45% 27 Aug 22 – 12 Oct 22 1.75% 13 Oct 22 – 15 Mar 23 2.25% 16 Mar 23 – 31 May 23 2.60%

35 Day (Monthly)

1 Jun 22 – 22 Jun 22 1.04% 23 Jun 22 – 13 Oct 22 1.29% 14 Oct 22 – 7 Nov 22 1.59% 8 Nov 22 – 16 Dec 22 2.08% 17 Dec 22 – 31 May 23 2.42%

Interest is accounted for in the year in which it is received. Interest is currently received monthly on the deposit account with Nationwide and the Redwood 35 day notice account, and annually at the end of the one-year term on the deposit account with United Trust Bank, and annually on the Redwood 95 day notice account. No accrual of interest is made.

Interest on Club deposits is divided equally between the Unrestricted and Restricted Accounts.

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11. Artists Fees & Expenses

To avoid identifying individual fees, the fees and expenses paid to artists for all Club concerts are combined in the Accounts. More detailed information is available in the management accounts prepared for the Committee, where the detailed income and expenditure for each concert are identified.

12. Hire of Hall and Ancillaries (Regular & Extra Concerts)

This covers hall hire at MT for Club concerts and the costs of floral decoration of the stage and refreshments for artists.

13. Piano Hire and Tuning

There were three hires payable in the 2022/23 season.

Deposits for piano hires in future seasons are recognised as pre-payments in the Balance Sheet.

14. Advertising

This covers the cost of advertising the season’s concerts, either collectively or individually, in third party publications, as well as the printing of the Club’s Season Brochure which is sent to members and made widely available at a number of outlets. It includes design of advertising artwork.

As stated in the Notes to the 2021/22 Accounts, the Trustees decided to use the services of two publicity distribution companies to place the 2022/23 season brochures at a number of public outlets on a regular basis. The additional cost of so doing was charged to the Kay Legacy Account as it was deemed to be exceptional and experimental. However, in the light of the experience the Trustees have decided not to repeat the exercise in 2023/24.

15. Printing & Design

This item covers the cost of design and printing of all printed material – flyers, posters, programmes, circulars to members, etc, except for the season brochure which is charged to advertising (see Note 14). Where a cost is incurred prior to the financial year of the concert to which it relates, it is recorded as a prepayment in the Balance Sheet.

The cost of printing materials relating to the 2023/24 season is recognised in the Balance Sheet as a pre-payment.

16. Educational Activities

The Club was able to resume educational events in the 2022/23 season. Organised on behalf of the Club by a member of the Committee, in conjunction with the cultural educational providers Severn Arts and Encore, two musical groups with experience in this field were engaged to spend a day with selected

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local primary schools. As noted in the previous year, these activities are being charged to the Kay Legacy Account.

17. Administration, Stationery and Payment Charges

This item covers the cost of stationery, postage, etc., incurred by Committee members on Club business.

The item may also include travel costs where Committee members represent the Club at external events (e.g. memorial services) and occasional gifts. No such expenditure was incurred in 2022/23.

It also includes net PayPal fees (which for charities are 1.4% plus 20p per transaction for PayPal account holders or 1.2% plus 30p per transaction for others) for purchases of memberships and tickets via the Club’s website, and fees (1.75% of transaction value) incurred for using the Zettle payment system to take card purchases of programmes and memberships and other items on concert days. The Trustees have taken the view that the convenience of a card payment facility to purchasers justifies the fees involved.

Monies taken by Zettle are automatically transferred to the Club’s current account within three days of the transaction. Monies in the Club PayPal account are regularly transferred by the Treasurer to the Club current bank account. Both the Zettle and PayPal accounts are treated as separate accounts in the Balance Sheet.

This item includes the cost of maintaining the Club’s website. During the year the website underwent a significant overhaul. The cost of this was charged to the Kay Fund Account, as updating the website had earlier been identified by the Trustees as a use to which part of these funds would be put.

The Club employs no personnel and no Committee member receives any remuneration for time spent on Club business.

18. Insurance (Making Music)

This covers the cost of the Club’s subscription to the organisation Making Music, a society of music promoters and organisers. It includes insurance cover (third-party liability, damage to the hired or loaned piano, concert cancellation etc.). The annual premium runs from December. The premium is accounted for wholly in the financial year in which it is incurred. No claims have been made under the policy during the year.

19. Performing Rights Society (PRS) Fees

PRS fees are normally charged to the Club by MT after concerts containing PRS chargeable items (where the composer is living or has been dead for less than 75 years) in the programme, as a percentage of MT box office sales. Provision has been made for PRS fees for the daytime concert in April 2023 which was held at different premises.

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20. Annual General Meeting

The cost of the AGM (usually hall hire, refreshments and any artist fees for a post AGM performance) is accounted for in the year in which it falls, and not the (prior) year to which the meeting relates. In July 2022, it was possible to resume holding a physical AGM after two years of virtual AGMs. Two Club members and their trio associate kindly played free of charge for AGM participants after the meeting.

Restricted Funds

Activity in Restricted Funds during the year is described under the appropriate headings.

Designated Funds

21. Symphony Hall Coach Trips

No trips were possible in the year and they are unlikely to be resumed unless a new volunteer comes forward to organise them.

Contingent Liabilities

At 31 May 2023:

Apart from commitments to artists and agents for performances booked for concerts in future years, and for future hall hires at MT, and future piano hires, the Club has no significant contingent liabilities at the end of 2022/23.

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