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2022-10-31-accounts

REGISTERED CHARITY NUMBER: 801073

Trustees' Report and

Financial Statements for the year ended 31 October 2022

for

Music in Country Churches

Stephenson Smart (East Anglia) Limited Chartered accountants & statutory auditor 22-26 King Street King's Lynn Norfolk PE30 1HJ

Music in Country Churches

Contents of the Financial Statements for the year ended 31 October 2022

Page
Reference and Administrative Details 1
Trustees' Report 2 to 3
Report of the Independent Auditors 4 to 6
Statement of Financial Activities 7
Statement of Financial Position 8
Statement of Cash Flows 9
Notes to the Statement of Cash Flows 10
Notes to the Financial Statements 11 to 18
Detailed Statement of Financial Activities 19 to 20

Music in Country Churches

Reference and administrative Details for the year ended 31 October 2022

Trustees Mr Matthew Rice (Chairman) Mr Robert Abel Smith Mr Nigel Savory Sir John Parsons KCVO Principal address PO Box 1645 Oxford OX4 9PE Website musicincountrychurches.org.uk Registered charity number 801073 Independent auditors Stephenson Smart (East Anglia) Limited Chartered accountants & statutory auditor 22-26 King Street King's Lynn Norfolk PE30 1HJ Solicitors Farrer & Co LLP 65-66 Lincoln's Inn Fields London WC2A 3LH Investment managers Investec Wealth & Investment Ltd The Plaza 100 Old Hall Street Liverpool L3 9AB

1

Music in Country Churches

Trustees' Report for the year ended 31 October 2022

The Trustees present their report with the financial statements of the Charity for the year ended 31 October 2022. The Trustees have adopted the provisions of 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 (FRS 102) (effective 1 January 2019).

Objectives and activities

Music in Country Churches was established on 14 February 1989 as a Charitable Trust in order to educate the public in music, predominantly by holding concerts in country churches. By raising monies from these concerts and through the support of many individuals and trusts, the Charity is able to make donations to all the churches in which concerts are held.

Achievement and performance

The Charity held concerts at churches in Minchinhampton (Gloucestershire), Brecon (Wales), Fotheringhay (Northamptonshire) and Cley-next-the-Sea (Norfolk) during the year. Donations totalling £6,500 were made to the churches where the concerts were held.

The Trustees have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.

Financial review

The Charity's investment portfolio is administered by Investec Wealth & Investment Ltd. In April 2021 the account ceased to be managed on a discretionary basis and was transferred to the IWI Fund Service, which offers a fully diversified, actively managed and cost-effective investment solution. The Charity's holding is currently invested in the IWI Balanced A Income Fund. This is a medium risk unit trust for those who seek a return in the form of both capital appreciation and income.

The Trustees have carried out risk assessments and are satisfied with the results of their work. Major risks are always discussed at Trustees' meetings and Trustees examine the systems in place to mitigate those risks.

Reserves policy

The Trustees define the Charity's reserves as the value of assets over and above those which are required to meet its current commitments and planned expenditure. Trustees aim to have sufficient reserves to enable the Charity to meet its financial objectives for one year.

Future plans

Further concerts took place during 2023 at Warkton (Northamptonshire) in June, Ramsbury (Wiltshire) in July, Widecomb-in-the-Moor (Devon) in July and Snettisham (Norfolk) in July.

Structure, governance and management

The Charity is run by a Committee of Trustees who meet at least twice each year, but usually more often, to discuss not only matters of policy and direction, but also to make decisions about the way the Charity is run and to keep a close eye on budgetary matters. The Trustees have the power to appoint new Trustees. Training and induction of new Trustees is undertaken on an informal and continual basis through discussions with existing Trustees and attendance at board meetings.

Statement of Trustees' responsibilities

The Trustees 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 Accounting Practice), including Financial Reporting Standard 102(The Financial Reporting Standard applicable in the UK and Republic of Ireland).

2

Music in Country Churches

Trustees' Report for the year ended 31 October 2022

Statement of Trustees' responsibilities - continued

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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 Charity and of the incoming resources and application of resources, including the income and expenditure, of the Charity for that period. In preparing those financial statements, the Trustees are required to

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the Board of Trustees on 23 August 2023 and signed on its behalf by:

........................................................................ Mr Matthew Rice - Chairman

3

Report of the Independent Auditors to the Trustees of Music in Country Churches

Opinion

We have audited the financial statements of Music in Country Churches (the 'Charity') for the year ended 31 October 2022 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

4

Report of the Independent Auditors to the Trustees of Music in Country Churches

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Charity'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 Charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

5

Report of the Independent Auditors to the Trustees of Music in Country Churches

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity's Trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Stephenson Smart (East Anglia) Limited Chartered accountants & statutory auditor 22-26 King Street King's Lynn Norfolk PE30 1HJ

Date: 23 August 2023

6

Music in Country Churches

Statement of Financial Activities for the year ended 31 October 2022

31.10.22 31.10.21
Total funds Total funds
Notes £ £
Income and endowments from
Donations and legacies 2 48,476 23,262
Other trading activities 3 24,687 16,136
Investment income 4 566 220
Total 73,729 39,618
Expenditure on
Raising funds 5 - 857
Charitable activities 6
Concert expenses 53,041 28,466
Grants payable 6,500 6,000
Support costs 13,821 12,799
Governance costs 2,460 3,336
Total 75,822 51,458
Net gains/(losses) on investments (4,575) 5,339
NET EXPENDITURE (6,668) (6,501)
Reconciliation of funds
Total funds brought forward 45,290 51,791
Total funds carried forward 38,622 45,290

The notes form part of these financial statements

7

Music in Country Churches

Statement of Financial Position 31 October 2022

31.10.22 31.10.21
Total funds Total funds
Notes £ £
Fixed assets
Tangible assets 12 278 371
Investments 13 26,538 30,974
26,816 31,345
Current assets
Debtors 14 2,150 2,782
Cash at bank 12,747 19,663
14,897 22,445
Creditors
Amounts falling due within one year 15 (3,091) (8,500)
Net current assets 11,806 13,945
Total assets less current liabilities 38,622 45,290
NET ASSETS 38,622 45,290
Funds 16
Unrestricted funds 38,622 45,290
Total funds 38,622 45,290

The financial statements were approved by the Board of Trustees and authorised for issue on 23 August 2023 and were signed on its behalf by:

.............................................

Mr Matthew Rice - Chairman

The notes form part of these financial statements

8

Music in Country Churches

Statement of Cash Flows for the year ended 31 October 2022

31.10.22 31.10.21
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 (7,343) (5,580)
Net cash used in operating activities (7,343) (5,580)
Cash flows from investing activities
Purchase of fixed asset investments (139) (29,587)
Sale of tangible fixed assets - 45
Sale of fixed asset investments - 30,515
Interest received 3 -
Dividends received 563 220
Net cash provided by investing activities 427 1,193
Change in cash and cash equivalents in the
reporting period (6,916) (4,387)
Cash and cash equivalents at the beginning
of the reporting period 19,663 24,050
Cash and cash equivalents at the end of
the reporting period 12,747 19,663

The notes form part of these financial statements

9

Music in Country Churches

Notes to the Statement of Cash Flows for the year ended 31 October 2022

1. Reconciliation of net expenditure to net cash flow from operating activities
31.10.22 31.10.21
£ £
Net expenditure for the reporting period (as per the Statement of
Financial Activities) (6,668) (6,501)
Adjustments for:
Depreciation charges 93 123
Losses/(gain) on investments 4,575 (5,339)
Profit on disposal of fixed assets - (28)
Interest received (3) -
Dividends received (563) (220)
Decrease/(increase) in debtors 632 (664)
(Decrease)/increase in creditors (5,409) 7,049
Net cash used in operations (7,343) (5,580)
2. Analysis of changes in net funds
At 1.11.21 Cash flow At 31.10.22
£ £ £
Net cash
Cash at bank 19,663 (6,916) 12,747
Total 19,663 (6,916) 12,747

The notes form part of these financial statements

10

Music in Country Churches

Notes to the Financial Statements for the year ended 31 October 2022

1. Accounting policies

Basis of preparing the financial statements

The financial statements of the Charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

Income

All income is recognised in the Statement of Financial Activities once the Charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. The following specific policies are applied to particular categories of income:

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Computer equipment - 25% p.a. reducing balance

Taxation

The Charity is exempt from tax on its charitable activities.

Fund accounting

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

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors. There are no restricted funds.

11

Music in Country Churches

Notes to the Financial Statements - continued for the year ended 31 October 2022

1. Accounting policies - continued

Pension costs and other post-retirement benefits

The Charity operates a defined contribution pension scheme. Contributions payable to the Charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2.
Donations and legacies
Donations and gift aid
3.
Other trading activities
Concert income
4.
Investment income
Income from listed investments
Deposit account interest
5.
Raising funds
Investment management costs
Portfolio management
6.
Charitable activities costs
Concert expenses
Grants payable
Support costs
Governance costs
31.10.22
31.10.21
£
£
48,476
23,262
31.10.22
31.10.21
£
£
24,687
16,136
31.10.22
31.10.21
£
£
563
220
3
-
566
220
31.10.22
31.10.21
£
£
-
857
Grant
funding of
activities
Support
Direct
(see note
costs (see
Costs
7)
note 8)
Totals
£
£
£
£
53,041
-
-
53,041
-
6,500
-
6,500
-
-
13,821
13,821
-
-
2,460
2,460
53,041
6,500
16,281
75,822

12

Music in Country Churches

Notes to the Financial Statements - continued for the year ended 31 October 2022

7. Grants payable

Grants payable
31.10.22 31.10.21
£ £
Grants payable 6,500 6,000
The total grants paid to institutions during the year were as follows:
31.10.22 31.10.21
£ £
Grants to Churches 6,500 6,000

8. Support costs

Management
£
Support costs
13,678
Governance costs
-
13,678
Governance
Finance
costs
£
£
143
-
-
2,460
143
2,460
Totals
£
13,821
2,460
16,281

9. Trustees' remuneration and benefits

There were no Trustees' remuneration or other benefits for the year ended 31 October 2022 nor for the year ended 31 October 2021.

Trustees' expenses

There were no Trustees' expenses paid for the year ended 31 October 2022 nor for the year ended 31 October 2021.

10. Staff costs

31.10.22 31.10.21
£ £
Wages and salaries 10,800 8,400
Pension costs 137 71
10,937 8,471
The average monthly number of employees during the year was as follows:
31.10.22 31.10.21
Staff 1 1
No employees received emoluments in excess of £60,000.

13

Music in Country Churches

Notes to the Financial Statements - continued for the year ended 31 October 2022

11. 2021 Comparatives for the statement of financial activities

2021 Comparatives for the statement of financial activities
Unrestricted
fund
£
Income and endowments from
Donations and legacies 23,262
Other trading activities 16,136
Investment income 220
Total 39,618
Expenditure on
Raising funds 857
Charitable activities
Concert expenses 28,466
Grants payable 6,000
Support costs 12,799
Governance costs 3,336
Total 51,458
Net gains on investments 5,339
NET INCOME/(EXPENDITURE) (6,501)
Reconciliation of funds
Total funds brought forward 51,791
Total funds carried forward 45,290

14

Music in Country Churches

Notes to the Financial Statements - continued for the year ended 31 October 2022

12. Tangible fixed assets

Tangible fixed assets
Computer
equipment
£
Cost
At 1 November 2021 and 31 October 2022 6,335
Depreciation
At 1 November 2021 5,964
Charge for year 93
At 31 October 2022 6,057
Net book value
At 31 October 2022 278
At 31 October 2021 371

13. Fixed asset investments

Cash and
Listed
settlements
investments
pending
£
£
Market value
At 1 November 2021
30,974
-
Additions
-
139
Fair value movement
(4,575)
-
At 31 October 2022
26,399
139
Net book value
At 31 October 2022
26,399
139
At 31 October 2021
30,974
-
Totals
£
30,974
139
(4,575)
26,538
26,538
30,974

There were no investment assets outside the UK. Valuation at 31 October 2022 is represented by:

Cash and
Listed settlements
investments pending Totals
£ £ £
27,410.84 Units in ETFS Ltd IW&I Balanced A Income Fund 26,399 139 26,538

15

Music in Country Churches

Notes to the Financial Statements - continued for the year ended 31 October 2022

14. Debtors: amounts falling due within one year
31.10.22 31.10.21
£ £
Other debtors 2,025 2,683
Prepayments 125 99
2,150 2,782
15. Creditors: amounts falling due within one year
31.10.22 31.10.21
£ £
Taxation and social security 233 1,000
Other creditors 2,858 7,500
3,091 8,500
16. Movement in funds
Net
movement At
At 1.11.21 in funds 31.10.22
£ £ £
Unrestricted funds
General fund 45,290 (6,668) 38,622
TOTAL FUNDS 45,290 (6,668) 38,622
Net movement in funds, included in the above are as follows:
Incoming Resources Gains and Movement
resources expended losses in funds
£ £ £ £
Unrestricted funds
General fund 73,729 (75,822) (4,575) (6,668)
TOTAL FUNDS 73,729 (75,822) (4,575) (6,668)

16

Music in Country Churches

Notes to the Financial Statements - continued for the year ended 31 October 2022

16. Movement in funds - continued

Comparatives for movement in funds

At
Unrestricted funds
General fund
TOTAL FUNDS
Net
movement
At
1.11.20
in funds
31.10.21
£
£
£
51,791
(6,501)
45,290
51,791
(6,501)
45,290

Comparative net movement in funds, included in the above are as follows:

Incoming Resources Gains and Movement
resources expended losses in funds
£ £ £ £
Unrestricted funds
General fund 39,618 (51,458) 5,339 (6,501)
TOTAL FUNDS 39,618 (51,458) 5,339 (6,501)

A current year 12 months and prior year 12 months combined position is as follows:

At
Unrestricted funds
General fund
TOTAL FUNDS
Net
movement
At
1.11.20
in funds
31.10.22
£
£
£
51,791
(13,169)
38,622
51,791
(13,169)
38,622

17

Music in Country Churches

Notes to the Financial Statements - continued for the year ended 31 October 2022

16. Movement in funds - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Gains and Movement
resources expended losses in funds
£ £ £ £
Unrestricted funds
General fund 113,347 (127,280) 764 (13,169)
TOTAL FUNDS 113,347 (127,280) 764 (13,169)

17. Related party disclosures

Mr Nigel Savory is a trustee of The Lady Hind Trust from which the Charity received a donation of £5,000 (2021 : £5,000) during the year.

18

Music in Country Churches

Detailed Statement of Financial Activities for the year ended 31 October 2022

31.10.22 31.10.21
£ £
Income and endowments
Donations and legacies
Donations and gift aid 48,476 23,262
Other trading activities
Concert income 24,687 16,136
Investment income
Income from listed investments 563 220
Deposit account interest 3 -
566 220
Total incoming resources 73,729 39,618
Expenditure
Investment management costs
Portfolio management - 857
Charitable activities
Concert expenses 53,041 28,466
Grants to institutions 6,500 6,000
59,541 34,466
Support costs
Management
Wages 10,800 8,400
Pensions 137 71
Insurance 188 71
Stationery and postage 1,978 2,595
Other office costs 415 667
Travelling 67 -
Computer equipment 93 123
Loss on sale of tangible fixed assets - (28)
13,678 11,899
Finance
Bank charges 143 900

This page does not form part of the statutory financial statements

19

Music in Country Churches

Detailed Statement of Financial Activities for the year ended 31 October 2022

31.10.22 31.10.21
£ £
Finance
Governance costs
Auditors' remuneration 1,800 1,650
Legal and professional fees 660 1,686
2,460 3,336
Total resources expended 75,822 51,458
Net expenditure before gains and losses (2,093) (11,840)
Realised recognised gains and losses
Gains/(losses) on other investment assets (4,575) 5,339
Net expenditure (6,668) (6,501)

This page does not form part of the statutory financial statements

20