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2020-12-31-accounts

National Children's Orchestras of Great Britain

Registered company number: 02471385 Registered charity number: 803026 (England and Wales)

Audited financial statements for the year ended

31 December 2020

National Children's Orchestras of Great Britain For the year ended 31 December 2020 Contents

Page
Report of the Trustees 1
Independent Auditor's Report 11
Statement of Financial Activities 15
Balance Sheet 16
Cash Flow Statement 17
Notes to the Cash Flow Statement 18
Notes to the Financial Statements 19

Report of the Trustees National Children's Orchestras of Great Britain For the year ended 31 December 2020

The Trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2020. 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 2015).

OBJECTIVES AND ACTIVITIES

1. Mission

The National Children's Orchestras of Great Britain ('NCO') is a charity which exists to inspire children and young people from all backgrounds and from across the UK to achieve their full potential through offering a world class foundation in orchestral performance and musicianship.

NCO was founded in 1978 by the late Vivienne Price MBE. At the time there was no provision available to young musicians under the age of 14 to develop their abilities in a national symphonic orchestra.

NCO's mission is to:

Provide an exceptional musical education in an orchestral context to children with potential aged • between 7 and 14 years

Ensure that all children with potential have the opportunity to access the opportunities NCO • provides, irrespective of financial means, background or disadvantage.

2. Public Benefit

NCO fulfils a vital role in the musical education of children and young people. No other organisation operates on a national basis to support the musical education of 7 to 14 year olds with early potential.

The Trustees have had regard to the Charity Commission's guidance on the Public Benefit requirement under the Charities Act 2011.

3. NCO 2020 Membership

In October 2019, over 1,100 young musicians auditioned for a place in NCO for 2020 membership. Primary school aged children auditioned by video for the first time as well as harpists and percussionists across all ages. Video auditions were also available to any young musician of any age who was unable to attend a live audition due to geographical, financial, and personal circumstances.

Live auditions continued around the country throughout October. NCO visited 14 venues in locations such as Edinburgh, Manchester, Birmingham, Cambridge, Cardiff, Bristol, Reading, Taunton, and London.

From this, 563 children were selected to join NCO’s five national orchestras and a further 155 children were invited to be Associate Members and join one of six regional orchestras. A total of 718 7-14 year olds took part in NCO’s national and regional programme during 2020.

259 children from ethnically diverse families were offered places in NCO’s National and Regional programme and members were drawn from every corner of the UK including Perthshire, Cornwall, Pembrokeshire, Norfolk, North Yorkshire, Devon and Guernsey. 113 national places were supported through NCO’s financial aid programme, representing 20% of NCO’s National membership.

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Report of the Trustees National Children's Orchestras of Great Britain For the year ended 31 December 2020

4. NCO 2020 Programme

NCO’s original plans for 2020 included the continuation of its national and regional orchestral learning programme at the same level of activity as 2019.

In addition to these plans, NCO also intended to embark on a period of organisational change from 2020 onwards which was underpinned by a new strategy. Building on its founding principles of excellence and diversity, the new strategy placed child voice, creativity, and wellbeing at its centre. A detailed evaluation framework was established so that the charity could assess the outcomes for children over a three-year period.

To support the new strategy, additional plans included additional access activities for children of all ages and abilities to engage with orchestral playing. Partnership plans were in place with Music Education Hubs (MEH) in Bristol and Manchester to support this activity. NCO had also developed relationships with five MEH’s through its 2020 regional orchestra programme and 24 MEH musicians were nominated to join NCO’s regional programme for 2020. Extra investment in social leadership training for staff and older NCO members had begun to support an inclusive environment for all participants as well as peer to peer mentoring.

Due to Covid-19, the NCO board took the decision at a meeting on 15 May 2020 to cancel all 2020 activities and rollover the entire membership to 2021. The only live activity to take place in 2020 was the first regional orchestra rehearsal day for all six orchestras which took place in February.

Very quickly NCO switched to online activities and began a series of Friday afternoon webinars, which were intended to be something for families to look forward to at the end of each week of lockdown. Expertly curated and hosted by NCO’s Artistic and Education Director, Catherine Arlidge, they were so popular they continued for 12 weeks and featured inspirational guests including conductor Mirga Grazinyte-Tyla, saxophonist Jess Gillam, cellist Sheku KannehMason, category finalists from the BBC Young Musician of the Year 2020 competition, members of the National Youth Orchestra and musicians from the London Symphony Orchestra, Berlin Philharmonic Orchestra and Royal Opera House.

NCO Online 2020

In June, NCO worked with MB Associates to carry out an extensive consultation with children, parents/guardians and freelance music and pastoral teams to find out what they thought children were missing most from NCO during lockdown, and how a new digital programme might work best for everyone involved. 707 survey responses were received, and the three top priorities were: to feel happy and have fun; to learn new musical skills; and to make friends.

Every aspect of NCO’s 2020 digital programme, NCO online, was built with these three outcomes in mind. NCO online ran for three weeks over the summer and was tailored separately towards younger (7-11) and older (12-14) children. Over 438 children took part and there were 171 sessions and 351 resources created all of which were made available via a specially commissioned, safe and child-friendly, password protected new website.

NCO children took part in fun Taskmaster Challenges each week, created their own Musical Postcards performances, and had Escape Room adventures, as well as Instrumental Masterclasses, Inspirational Webinars, Listening Challenges and Section Meet-Ups with their music tutors. The three weeks culminated in a mass multitrack performance of a specially commissioned ‘NCO Mambo’, which included choreography, DIY percussion and improvisation and compiled out of 990 video submissions by children.

Working again with MB Associates, NCO evaluated the programme through surveys and focus groups to ascertain the impact of the programme and progress towards the three stated outcomes for children. This evaluation proved invaluable in terms of informing the 2021 NCO Online programme.

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Report of the Trustees National Children's Orchestras of Great Britain For the year ended 31 December 2020

The average sign-up rate across NCO musicians for NCOnline was 61%. This was considerably higher for new musicians (75%) and those in receipt of a full bursary (86%). 108 children were supported through NCO’s bursary programme to take part in NCO Online 2020.

5. Profile and Engagement

NCO’s profile increased significantly throughout the year with excellent press coverage including a live interview on BBC Radio 3’s In Tune programme with the Artistic and Educational Director, two days ahead of the live stream video release of the NCO Mambo. Articles covering NCO Online were published including a feature in The Strad and to date, the NCO Online Summer Celebration video has received 3,842 views and the NCO Mambo has been watched 3,812 times.

NCO Online 2020 was highly commended in the Classical Music Digital Awards 2020 in the ‘Youth Organisation of the Year’ category.

Social media following also increased to 2,161 on Instagram, 4,870 on Facebook, 4,378 on Twitter and with a total of 36 videos uploaded to You Tube during the year, 2,270 subscribers and 887,361 views.

6. Auditions

Given the cancellation of NCO’s activity programme due to covid-19, the 2020 membership was ‘rolled over’ so that members were offered the opportunity to take part in NCO 2021 without having to re-audition. As a result, around 85% of young musicians remained in membership into 2021. NCO will launch its 2021 online auditions process for 2022 membership in early July 2021.

7. Financial Aid and Access

NCO remains committed to ensuring that any child with potential, regardless of financial circumstances, should be enabled to take up an NCO place. With help from the generous support of The Leverhulme Trust and The Linder Foundation, along with several additional funders, NCO awarded a total of 124 bursaries (£11,001) in 2020 to support participation in NCO Online.

8. Progression

NCO’s unique work with the UK’s youngest musicians is the first vital stage in a development that nurtures youth musicianship on to youth orchestras and beyond. NCO alumni are represented in professional orchestras across the world and many notable conductors and soloists first found their musical inspiration with NCO. In 2019 94 members of the National Youth Orchestra of Great Britain’s were former musicians of NCO.

9. Future Plans

NCO continued to plan for the return of residential courses and regional activity in 2021 in order to provide opportunities for 2020 members who opted to remain in membership the following year. However, at a board meeting on 1 April 2021, having considered all current guidance provided by the Department for Education and Public Health England, Trustees made the difficult decision to cancel all residential activity during the current year.

Uncertainty around social distancing requirements into the summer months made NCO’s planned orchestral activity too susceptible to late cancellation, despite considerable, approved mitigations and detailed discussions with host venues. The charity aims to deliver local, replacement orchestral days in the autumn of 2021, on the basis that social distancing is no longer required.

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Report of the Trustees National Children's Orchestras of Great Britain For the year ended 31 December 2020

NCO Online 2021

However, the charity delivered an extensive digital programme, NCO Online 2021 which lasts 3.5 months and engaged 600 children drawn from the 2020/2021 membership as well as some new, younger players recruited at the start of the year.

The programme continues to be built around 5 key themes with live content and resources accessed via the purposebuilt website:

Highlights up until the midway point include:

NCO Online in Numbers at mid-way point

Since the programme launched, NCO has delivered:

Members have engaged with the online programme by submitting:

The NCO Online website contains:

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Report of the Trustees National Children's Orchestras of Great Britain For the year ended 31 December 2020

Two significant developments in 2021 are an open Trustee recruitment and induction process as part of an ongoing governance review to enhance existing skills and networks on the NCO board as well as achieve greater diversity and lived experiences to inform and support the charity’s future strategy. In addition, in March 2021, the charity relocated its administrative base from Weston Super Mare to the Paintworks development in Bristol. Over the coming months, NCO will develop local networks and partnerships with other arts and educational organisations as well as businesses and make its home in this vibrant and creative city.

Going concern

NCO’s Board and Finance Committee convened regularly since March 2020 to review the charity’s financial position and future plans. The board is mindful that a strong reserves position at the start of 2020, alongside mitigating actions, and successful fundraising to date have combined to enable the charity to continue to not only operate but also innovate through its digital activities. The charity’s expected loss in 2021 is significantly mitigated due to a Cultural Recovery Fund grant of £210,000 alongside continued growth in fundraising and ongoing cost savings.

NCO’s board does not anticipate any further losses in 2021, with any replacement activity in the autumn supported by re-purposed grants. Due to ongoing uncertainty about how social distancing may impact NCO’s live activities in 2022, the NCO board will continue to monitor budgets and consider several options and financial scenarios should this be necessary.

STRUCTURE, GOVERNANCE AND MANAGEMENT

1 Governing document

The National Children's Orchestras of Great Britain is a charitable company limited by guarantee, incorporated on 19 February 1990 having acquired the whole of the assets, liabilities and activities of the National Children's Orchestra, being a charitable trust created by a deed of trust dated 16 August 1978. The company was set under a Memorandum of Association which established the objects and powers of the company and is governed under revised Articles of Association, adopted by the Board on 14 August 2019.

The company adapted its name from The National Children's Orchestra to The National Children's Orchestras of Great Britain, to better reflect its activities. This was approved by the Board and implemented with the approval of the Charity Commission on 10 July 2012.

In the event of the company being wound up, members are required to contribute an amount not exceeding £1.

2 Trustees Recruitment

The directors of the company are also charity trustees for the purposes of company law and under the Memorandum and Articles of Association are known as and referred to within this report and the financial statements as 'Trustees'.

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Report of the Trustees National Children's Orchestras of Great Britain For the year ended 31 December 2020

It is the practice of the Board to ensure that a balance of skills is maintained within the Trustees, and that NCO has effective leadership in all aspects of its work. This applies to the operations of the Board as a whole and also to the Finance Committee.

The Board will advertise in publications and online for new Trustees when required and undertake a regular skills audit to inform that open selection process.

The Chair of Trustees and executive team will normally induct a new trustee through a number of familiarisation sessions, including, for example, attending concerts and visiting courses. The sessions aim to introduce the trustee to NCO and its operating context, business plans and financial position. Trustees are appointed by a resolution passed at a properly convened meeting of the Trustees or by ordinary resolution of the Trustees (in their capacity as Members) at a general meeting.

3 Organisational Structure

Trustees meet at least four times a year to approve strategic, artistic, financial and governance policies. The Board is supported by NCO's senior management team Sophie Lewis (Managing Director) and Catherine Arlidge (Artistic and Educational Director).

In addition, the Finance Committee meets four times a year to review in more detail the financial controls, governance, risk management and investment performance of the charity.

The Managing Director and Artistic and Educational Director are supported by an informal Music Advisory Group (consisting of Music Tutors and conductors).

4 Objectives and aims

The Objects stated in the Charity’s Articles of Association are:

FINANCIAL REVIEW

The Statement of Financial Activities for the year is set out on page 15. Total income comprised £341,797 for unrestricted funds, £41,000 for restricted funds. Total expenditure was £544,826 in unrestricted expenditure and £11,001 in restricted expenditure. At 31 December 2020 the reserves of the charity were £630,365 of which £122,650 are restricted.

The Charity benefited from £21,952 in Orchestral Tax Relief and £14,180 in Gift Aid in the accounting period.

1 Reserves Policy

Of unrestricted funds £11,718 may only be realised through the sale of fixed assets. £32,631 is held in designated funds, primarily relating to the property liabilities the charity may face on expiry of its present lease. Accordingly, £463,366 is available as free reserves.

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Report of the Trustees National Children's Orchestras of Great Britain For the year ended 31 December 2020

This reserve is maintained to ensure that the activities of NCO can continue for an appropriate period in any year when donations to the charity and income fall short of expenditure. Fundraising activities to secure donations to the charity are ongoing and NCO's strategy has been reviewed and renewed in response to the current challenging fundraising environment and the impact of the pandemic. The receipt of membership fees and box office income is highly seasonal, as are contractual liabilities incurred in connection with providing these activities.

Given the ongoing impact of the pandemic on NCO’s programme and financial position, NCO’s Trustees are currently reviewing the charity’s free reserves policy. The reserves target in 2019 was £651,000.

2 Restricted Reserves

These funds are maintained through annual fundraising activities. NCO receives specific donations from which only specific disbursements may be made. An explanation of each restricted reserve and the purposes for which it may be expended are given in Section 20 below. Apart from the two reserves noted below, there are no specific periods of time during which these funds must be expended. Over the next three years, NCO intends to draw down specific restricted reserves to support the charity’s ongoing mission and objectives.

The charity maintains a Bursary Fund to ensure that financial assistance is available to cover all or part of the costs of membership of any child whose family qualifies in the year of membership. The Board considers that a fund should be maintained for this purpose that is equivalent to approximately one year of anticipated expenditure, assuming fundraising continues. In the year under review, the requirement for bursary funding was significantly reduced in line with an adapted programme of activity due to the pandemic. Therefore, grants were either approved to be repurposed to support core and/or NCO Online costs or deferred to 2021.

Accordingly, the Bursary Fund was drawn down by £11,001. The remaining balance is £31,742.

3 Risk Management

The Trustees and Executive team meet regularly to review major internal and external strategic, business and operational risks which the charity faces. Trustees annually review principal risks, policies, systems and procedures to mitigate those risks as well as measures designed to minimise or manage the potential impact in the event that those risks present themselves.

Trustees consider there to be three key risks to the charity:

a. Covid-19

The impact of covid-19 on both NCO’s financial position and ability to plan live activities presents an ongoing risk to the charity as government guidance for social distancing, and in particular for national youth orchestras, continues to evolve although is improving. NCO Trustees will continue to monitor the situation through regular reporting and meetings and will develop alternative plans if required for the charity’s 2022 programme.

b. Child Protection and Safeguarding

The well-being and safety of all children and young musicians whilst engaged in NCO activities is of paramount importance. The Board undertakes an annual review of safeguarding policy and practice. All staff and volunteers at NCO must have a full current Enhanced Disclosure and Barring Service (DBS) check. Training is provided for staff at the start of every residency and all staff must complete a basic online child safeguarding course. Additional training is undertaken by senior residency and administrative staff.

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Report of the Trustees National Children's Orchestras of Great Britain For the year ended 31 December 2020

c. Fundraising

Every year, NCO needs to raise c. £500,000 to subsidise its overall programme of activity, provide financial aid through its bursary and scholarship programmes and support core costs. The Executive team regularly report to the board and finance committee on secured income against targets and to monitor strategies for fundraising and the risks therein.

4 Development 2020 & 2021

2020

The onset of COVID-19 meant NCO could not capitalise on its emerging organisational strategy for fundraising. This impacted the charity’s ability to fundraise from new grant makers and engage new individual supporters. NCO initially planned to raise an additional £100k+ in new grants attached to this strategy.

Not being a publicly funded organisation or in any multi-year partnerships with major grant makers limited NCO’s ability to access immediate emergency funding in 2020.

However, every one of the charity’s established supporters renewed their support in 2020. Bolstered by a successful fundraising appeal, this means the charity has kept (proportionally) on track with fundraising this year.

NCO adjusted its budget for restricted raised income to meet the reduced needs of digital bursaries. This means that, with the full agreement of our funders, NCO either re-purposed or deferred several bursary grants and donations which enabled a healthy bursary fund for 2021.

2021

NCO’s initial fundraising for 2021 prioritised securing funding for our digital programme, NCO Online, and associated organisational overheads. In February we secured a significant grant from the Garfield Weston Foundation to help us deliver NCO Online and further some vital strategic work. NCO Online was further supported by a generous grant from The Linder Foundation, who also provided additional bursary funding for participating children.

In March NCO was fortunate enough to receive a grant of £210,000 from the Government’s Cultural Recovery Fund via the Arts Council of England. This grant was awarded to help mitigate the loss of income from the COVID-19 pandemic, and in recognition of the importance of its work and future plans.

NCO has been gratified to be rewarded with a full renewal of all other grant relationships alongside several new funding partnerships. Some funders have also permitted the repurposing of funding as NCO’s plans were inevitably affected by the ongoing pandemic. This flexibility has been vital and gratefully received.

NCO is currently running a fundraising appeal to further mitigate against some of the financial losses of COVID-19. Alongside other key support from individuals via existing Giving Schemes, and an ongoing sponsorship with The Associated Board of The Royal Schools of Music (ABRSM), this has further bolstered our 2021 fundraising efforts.

REFERENCE AND ADMINISTRATION

Registered Company number 02471385 (England and Wales)

Registered Charity number

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Report of the Trustees National Children's Orchestras of Great Britain For the year ended 31 December 2020

803026

Registered office

Saffery Champness LLP St Catherine’s Court Berkeley Place, Clifton Bristol BS8 1BQ

Principal Office Unit 2.3 Streamline 436-441 Paintworks Bristol BS4 3AS

Trustees

Louise Mitchell (Chair) Janet Baker (Honorary Treasurer) Charles Bligh (resigned 4 February 2021) George Caird Miranda Francis Fiona Harvey Andrew Kemble Jonathan Mayes William Norris Claire Thompson Brian Weir Howard Williams

Finance Committee Members

Janet Baker (Hon. Treasurer) Charles Bligh George Caird Andrew Kemble Jonathan Mayes Clare Thompson Founder Vivienne Price MBE

Senior Management Team

Sophie Lewis Managing Director Catherine Arlidge MBE Artistic and Educational Director

Auditors

Saffery Champness LLP St Catherine’s Court Berkeley Place Clifton Bristol BS8 1BQ

Bankers

Lloyds TSB Bank PLC 64 High Street Epsom Surrey KT19 8AT

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Report of the Trustees National Children's Orchestras of Great Britain For the year ended 31 December 2020

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also directors of National Children's Orchestras of Great Britain for the purposes of company law) 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).

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 statements, the trustees are required to:

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 statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the reparation and dissemination of financial statements may differ from legislation in other jurisdictions.

AUDITORS

The auditors, Saffery Champness LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

2 July 2021

Approved by the board of trustees on……………………………………………..and signed on its behalf by:

……………………………………………………………………….

J Baker - Trustee

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Independent Auditor's Report to the members and trustees of National Children's Orchestras of Great Britain

Opinion

We have audited the financial statements of National Children's Orchestras of Great Britain for the year ended 31 December 2020 which comprise the statement of financial activities, balance sheet, cash flow statement and the related notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Independent Auditor's Report to the members and trustees of National Children's Orchestras of Great Britain

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the the Trustees’ Annual Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

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Independent Auditor's Report to the members and trustees of National Children's Orchestras of Great Britain

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page xx, the trustees (who are also directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charitable company by discussions with trustees and updating our understanding of the sector in which the charitable company operates.

Laws and regulations of direct significance in the context of the charitable company include The Companies Act 2006, and guidance issued by the Charity Commission for England and Wales .

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

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Independent Auditor's Report to the members and trustees of National Children's Orchestras of Great Britain

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Strong (Senior Statutory Auditor) Date: for and on behalf of Saffery Champness LLP, Statutory Auditor St Catherine's Court Berkeley Place Clifton Bristol BS8 1BQ

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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National Children's Orchestras of Great Britain Statement of financial activities for the year ended 31 December 2020

Note
Income and endowments from:
Donations and legacies
3
Charitable activities
Auditions
Concerts
Regionals
Membership fees
4
Other trading activities
5
Investments
6
Other
Total
Expenditure on:
Raising funds
7
Charitable activities
Residencies (including online)
Auditions
Concerts
Bursaries and Scholarships
Regionals
8
Total
Net gains/(losses) on investments
Net income/(expenditure)
Transfers between funds
19
Net movement in funds
19
Total funds brought forward
Total funds carried forward
19		 Unrestricted
Funds
£
218,839
-
60
19,081
64,500
16,163
1,202
21,952
341,797
60,934
449,072
-
410
-
34,410
544,826
785
(202,244)
1,954
(200,290)
708,005
507,715		 Restricted
Funds
£
41,000
-
-
-
-
-
-
-
41,000
-
-
-
-
11,001
-
11,001
-
29,999
(1,954)
28,045
94,605
122,650		 Total
2020
£
259,839
-
60
19,081
64,500
16,163
1,202
21,952
382,797
60,934
449,072
-
410
11,001
34,410
555,827
785
(172,245)
-
(172,245)
802,610
630,365		 Total
2019
£
345,021
17,268
61,478
65,673
741,500
28,925
2,128
199,372
1,461,365
133,690
835,528
117,264
116,460
157,438
110,936
1,471,316
2,047
(7,904)
-
(7,904)
810,514
802,610

27/46

Page 15

National Children's Orchestras of Great Britain Balance Sheet as at 31 December 2020

Note
Fixed assets
Tangible assets
Investments
14
15
Current assets
Debtors
Cash at bank and in hand
16
Creditors: amounts falling due
within one year
17
Net current assets
Total assets less current liabilities
Net assets
Restricted funds
19
Unrestricted funds:
19
Total charity funds		 Unrestricted
£
11,718
13,480
25,198
271,114
401,907
673,021
(190,504)
482,517
507,715
507,715		 Restricted
£
-
-
-
-
122,650
122,650
-
122,650
122,650
122,650		 2020
Total funds
£
11,718
13,480
25,198
271,114
524,557
795,671
(190,504)
605,167
630,365
630,365
122,650
507,715
630,365		 2019
Total funds
£
30,227
13,480
43,707
253,688
716,835
970,523
(211,620)
758,903
802,610
802,610
94,605
708,005
802,610

The notes at pages 19 to 31 form part of these accounts

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

Approved by the trustees on 2 July 2021 and signed on their behalf by:

----- Start of picture text -----
……………………………………………………
L Mitchell - Trustee
……………………………………………………
J Baker - Trustee
----- End of picture text -----

28/46

Page 16

National Children's Orchestras of Great Britain Cash Flow Statement for the year ended 31 December 2020

Notes
Cash generated from operating activities
Cash generated from operations
Interest paid
Taxation refund
1
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in the reporting period
2
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period		 2020
£
(215,432)
-
21,952
(193,480)
-
1,202
1,202
(192,278)
716,835
524,557		 2019
£
(310,543)
(2,773)
208,188
(105,128)
(1,379)
653
(726)
(105,854)
822,689
716,835

29/46

Page 17

National Children's Orchestras of Great Britain Cash Flow Statement for the year ended 31 December 2020

Notes to the Cash Flow Statement

1 Reconciliation of net income/(expenditure) to net cash flow Reconciliation of net income/(expenditure) to net cash flow from operating activities
2020 2019
£ £
Net income/(expenditure) for the reporting period
(as per the statement of financial activities) (172,244) (7,904)
Adjustments for:
Depreciation charges 18,508 19,945
Gains on investments - (2,047)
Interest received (1,202) (653)
Interest paid - 2,773
Tax refund due (21,952) (199,372)
(Increase)/decrease in debtors (17,426) 21,716
(Decrease)/increase in creditors (21,116) (145,001)
Net cash provided by/(used in) operating activities (215,432) (310,543)
2 Analysis of changes in net funds At 1 January At 31
Net cash £
2020		 Cash flow
£		 £
December 2020
Cash at bank and in hand 716,835 (192,278) 524,557
Total 716,835 (192,278) 524,557

30/46

Page 18

National Children's Orchestras of Great Britain Notes to the financial statements for the year ended 31 December 2020

1 Statutory information

National Children's Orchestras of Great Britain is a charitable company limited by guarantee and domiciled in England and Wales. The Charity is registered in England and Wales, Registered Company number 2471385, Registered Charity number 803026. The registered office is St Catherine's Court, Berkeley Place, Bristol, BS8 1BQ, and the Principal office is Unit 2.3, Streamline, 436-441 Paintworks, Arnos Vale, Bristol, BS4 3AS.

The principal activity of the Charity is to foster and develop the early musical talent of children aged between 7 and 14 years from across the UK, providing world-class opportunities for orchestral training and performance.

2 Accounting policies

Basis of preparing the financial statements

The financial statements of the charitable company, 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 Companies Act 2006. 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.

Statement of compliance

These financial statements have been prepared in compliance with FRS 102 and SORP (FRS 102) the financial reporting standards applicable in the UK and Republic of Ireland and Companies Act 2006.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Charity's accounting policies which are described above, trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Depreciation

Assets are written down over their estimated useful lives. The actual lives of the assets may differ from these estimates. The lives of the assets are kept under review and adjusted as appropriate.

Allocation of costs between activities

As a small charity many costs incurred, including staff time, cover more than one activity. These costs are allocated to activities based on the key cost drivers and best estimates of staff time on each activity.

Page 19

National Children's Orchestras of Great Britain Notes to the financial statements for the year ended 31 December 2020

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.

In particular:

Donations are recognised when the amount of the donation is known and the receipt of funds is probable.

Legacies are recognised when the amount is known with reasonable certainty and the receipt of funds is probable. This may be earlier than the date of receipt of funds where appropriate notification has been received from those dealing with the estate.

Membership income is recognised in the accounting year the membership relates to. Any advance payments of membership are deferred to the period to which they relate.

Audition income is recognised when the auditions have taken place.

Income from Concerts and Regionals is recognised once the event has taken place. Any advance payments are deferred.

Income from trading activities is recognised upon sale of the associated merchandise.

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 costs 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 relate to bursaries and scholarships for attending the courses run by the Charity. Where a member of the Orchestra awarded a grant does not attend, the associated grant is cancelled.

Allocation and apportionment of costs

Costs are allocated to the different activities of the charity on an actual basis where possible. Where costs incurred relate to a number of activities these are apportioned on the basis of time spent on those activities.

Tangible fixed assets

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

Short leasehold - over the life of the lease Music and Instruments - 20% on cost Fixtures and fittings - 20% on cost Motor vehicles - 16.67% on cost

Page 20

National Children's Orchestras of Great Britain Notes to the financial statements for the year ended 31 December 2020

Fixed assets are stated at cost less accumulated depreciation.

Items purchased for less than £200 are not capitalised and are expensed through the Statement of Financial Activities.

Taxation

The National Children's Orchestra of Great Britain is registered as a Charity with the Charity Commission under number 803026. Because of its charitable status The National Children's Orchestra of Great Britain is exempt from United Kingdom taxation on its surplus income and capital gains.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

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

Trade and other debtors

Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of any impairment.

Those that are receivable after more than one year or constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised costs, net of impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other shortterm highly liquid investments with original maturities of three months or less and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities.

Trade and other creditors

Trade and other creditors are initially recognised at the transaction price and are thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Investments

Investments are carried at their market value with movements in the market value being taken to the Statement of Financial Activities in the year.

Page 21

National Children's Orchestras of Great Britain Notes to the financial statements for the year ended 31 December 2020

3
Donations and legacies
Gift Aid tax recovered
Miscellaneous income
Donations
Furlough grant received
4
Income from charitable activities
Auditions
Concert income
Regionals
Membership fees
5
Other trading activities
Merchandising income
6
Investment income
COIF dividend
Investment income
Interest receivable - trading		 2020
£
208,759
36,046
14,180
854
259,839
2020
£
-
60
19,081
64,500
83,641
2020
£
16,163
16,163
2020
£
-
1,202
-
1,202		 2019
£
341,340
-
3,621
60
345,021
2019
£
17,268
61,478
65,673
741,500
885,919
2019
£
28,925
373,946
2019
£
1,476
401
252
2,129

Page 22

National Children's Orchestras of Great Britain Notes to the financial statements for the year ended 31 December 2020

7 Raising funds

Other costs
Raising donations and legacies
Staff costs
Staff costs
Other trading activities
Purchases
Total		 £
2020
8,766
39,022
47,788
-
13,146
13,146
60,934		 2019
£
83,061
18,002
101,063
32,627
-
32,627
133,690

8 Charitable activities costs

Auditions
Concerts
Bursaries and scholarships
Regionals
Residencies (including online)		 Direct costs
£
34,410
-
410
-
47,612
82,432		 Grant funding of
activities (see
note 9)
£
-
11,001
-
-
-
11,001		 Support costs (see
note 10)
£
-
-
-
-
401,460
401,460		 Totals
£
34,410
11,001
410
-
449,072
494,893

9 Grants payable

Bursaries and scholarships
The total grants paid to individuals during the year was as follows:
Grant		 £
2020
11,001
£
2020
11,001		 2019
£
144,212
2019
£
144,212

All grants relate to bursaries provided to individuals as a subsidy towards their membership fees and travel costs.

Page 23

National Children's Orchestras of Great Britain Notes to the financial statements for the year ended 31 December 2020

----- Start of picture text -----
|||||| |---|---|---|---|---| |10|Support costs| |Management|Finance|Governance costs|Totals| |£|£|£|£| |Residencies (including online)|347,320|33,802|20,338|401,460| |Auditions|-|-|-|-| |Concerts|-|-|-|-| |Bursaries and Scholarships|-|-|-|-| |Regionals|-|-|-|-| |347,320|33,802|20,338|401,460|

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

11 Net income/(expenditure)

Net income/(expenditure) is stated after charging:

----- Start of picture text -----
|||| |---|---|---| |2020|2019| |£|£| |Auditor' remuneration|7,140|3,738| |Auditors' remuneration for non audit work|2,580|3,000| |Depreciation - owned assets|18,509|19,945|

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

12 Trustees' remuneration and benefits

There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.

Trustees' expenses

Trustees' expenses in respect of attendance at board meetings during the period totalled £nil (2019: £342 was paid to 1 trustees).

13 Staff costs

----- Start of picture text -----
|||| |---|---|---| |2020|2019| |£|£| |Wages and salaries|303,386|278,003| |Social security costs|24,099|27,218| |Pension costs|6,745|3,737| |334,230|308,958| |The average monthly number of employees during the year was as follows:| |2020|2019| |£|£| |12|10|

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

The average monthly number of employees during the year was as follows:

There were no employees whose employee benefits (excluding employer pension costs) exceeded £60,000.

The Orchestras employed 57 freelancers during the year (2019: 185), who worked a total of 392 days (2019: 1,907 days).

The social staff provide pastoral support for the members of the Orchestras, whilst tutors help with the musical elements. These staff are paid on a per session basis.

Page 24

National Children's Orchestras of Great Britain Notes to the financial statements for the year ended 31 December 2020

Tangible fixed assets
14
Additions
Cost
At 1 January 2020
At 31 December 2020
Charge for the year
Depreciation
At 1 January 2020
At 31 December 2020
Net Book Value
At 31 December 2020
At 31 December 2019		 Short
leasehold
£
-
38,109
38,109
-
38,109
38,109
-
-		 Music and
Instruments
£
-
124,045
124,045
7,728
113,609
121,337
2,708
10,436		 Fixtures and
fittings
£
-
72,018
72,018
3,257
66,652
69,909
2,109
5,366		 Motor vehicles
£
-
45,148
45,148
7,524
30,723
38,247
6,901
14,425		 Totals
£
279,320
-
279,320
249,093
18,509
267,602
11,718
30,227
15
Fixed asset investments
Market value
At 1 January 2020
Revaluations
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Listed
investments
£
13,480
-
13,480
13,480
13,480

There were no investment assets outside the UK.

Page 25

National Children's Orchestras of Great Britain Notes to the financial statements for the year ended 31 December 2020

16
Debtors: amounts falling due within one year
Trade debtors
Prepayments
Tax recoverable
17
Creditors: amounts falling due within one year
Accruals
Other creditors
Social security and other taxes
Trade creditors		 2020
£
14,180
35,610
221,324
271,114
2020
£
21,159
42,000
180
127,165
190,504		 2019
£
780
53,536
199,372
253,688
2019
£
13,405
8,681
52,224
137,310
211,620

Included within other creditors above is deferred income, further information on this is provided in note 24.

18 Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years		 2020
£
29,009
20,233
49,242		 2019
£
18,020
8,776
26,796

Lease payments recognised as an expense in the year amounted to £20,656 (2019: £18,020).

19
Movement in Funds
Unrestricted funds
General fund
Unrestricted - designated funds
IT Replacement fund
Office move
Restricted funds
Bursary fund
Scholarship fund
E Rorison winter award
Access and progression
F Guthrie
Vivienne Price memorial fund
1978 association
General manager salary
Total funds		 At 1/1/20
£
675,374
7,131
25,500
708,005
1,743
1,792
4,231
17,470
1,522
18,677
47,216
1,954
94,605
802,610		 Net movement in
funds
£
(202,244)
-
-
(202,244)
29,999
-
-
-
-
-
-
-
29,999
(172,245)		 Transfers between
funds
£
1,954
-
-
1,954
-
-
-
-
-
-
-
(1,954)
(1,954)
-		 At 31/12/20
£
475,084
7,131
25,500
507,715
31,742
1,792
4,231
17,470
1,522
18,677
47,216
-
122,650
630,365

Page 26

National Children's Orchestras of Great Britain Notes to the financial statements for the year ended 31 December 2020

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Bursary fund
E Rorison winter award
Vivienne Price memorial fund
Music support
General manager salary
Total funds
Comparatives for movement in funds
Unrestricted funds
General funds
IT replacement fund
Office move
Restricted funds
Bursary fund
Scholarship fund
Leverhulme scholarship fund
E Rorison winter award
Access and progression
F Guthrie
Vivienne Price memorial fund
1978 association
General manager salary
Total funds		 Incoming
resources
£
341,797
41,000
-
-
-
-
41,000
382,797
At 1/1/19
£
659,252
7,131
25,500
691,883
23,573
1,792
-
4,431
17,470
1,522
22,627
47,216
-
118,631
810,514		 Resources
expended
£
(544,826)
(11,001)
-
-
-
-
(11,001)
(555,827)
Net movement in
funds
£
16,554
-
-
16,554
(21,830)
-
(432)
(200)
-
-
(3,950)
-
1,954
(24,458)
(7,904)		 Gains and losses
£
785
-
-
-
-
-
-
785
Transfers between
funds
£
(432)
-
-
(432)
-
-
432
-
-
-
-
-
-
432
-		 Movement in
funds
£
(202,244)
29,999
-
-
-
-
29,999
(172,245)
At 31/12/19
£
675,374
7,131
25,500
708,005
1,743
1,792
-
4,231
17,470
1,522
18,677
47,216
1,954
94,605
802,610

Page 27

National Children's Orchestras of Great Britain Notes to the financial statements for the year ended 31 December 2020

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

Unrestricted funds
General funds
Restricted funds
Bursary fund
Leverhulme scholarship fund
E Rorison winter award
Vivienne Price memorial fund
Music support
General manager salary
Total funds		 Incoming
resources
£
1,318,065
103,000
15,000
-
-
300
25,000
143,300
1,461,365		 Resources
expended
£
(1,303,558)
(124,830)
(15,432)
(200)
(3,950)
(300)
(23,046)
(167,758)
(1,471,316)		 Gains and losses
£
2,047
-
-
-
-
-
-
-
2,047		 Movement in
funds
£
16,554
(21,830)
(432)
(200)
(3,950)
-
1,954
(24,458)
(7,904)

Designated funds:

IT replacement fund

This fund is to provide for future IT expenditure and replacement as a condition of the restricted donation from Fidelity towards IT equipment.

Office move fund

NCO has an obligation under its office lease arrangements to make good the premises on expiry of the lease. No provision has been made for this liability as the costs cannot be reliably quantified

Restricted funds:

Bursary fund

This fund is maintained through annual fundraising activities. NCO receives specific donations from which only bursary payments may be made. Distributions are made annually to support the membership of children from lower income families who might otherwise not be able to take up their places. As well as contributions to all or part of orchestra membership fees, financial assistance is also available towards the costs of travelling to courses, overnight accommodation for families who have long distances to travel, subsidised concert tickets and NCO regional orchestra rehearsal fees. Awards are made against a sliding scale on the basis of annual household income. Applications are scrutinised, and awards made, by an external panel of experts independent of NCO. The NCO Board regularly reviews bursary expenditure and scales to ensure that NCO is offering as much help as fundraising allows.

Scholarship fund

The Scholarship fund is to be used for scholarships to be granted at the discretion of the Artistic Director and Principal Conductor.

Page 28

National Children's Orchestras of Great Britain Notes to the financial statements for the year ended 31 December 2020

Leverhulme Scholarship fund

The Leverhulme Scholarship Fund was established to administer scholarships funded by the Everhulme Trust. Selection of Leverhulme Scholars is based on talent and musical potential, as opposed to bursary awards, which are made on the basis of financial circumstances.

E Rorison winter award

Elizabeth Rorison, a former trustee of NCO, bequeathed £5,000 towards an annual winter concert award.

Access and progression

This fund represents money received to support the outreach activities.

F Guthrie

Mrs Faith Guthrie, a former NCO Trustee, generously supports certain NCO projects and provides bursaries from time to time.

Vivienne Price memorial fund

This fund has been established through donations made to NCO in memory of Vivienne Price MBE, NCO's Founding Patron, and the proceeds of a 'Grade-One-athon' fundraising activity undertaken by NCO tutors, Trustees and staff during 2015. The proceeds will be distributed over time at the discretion of the Artistic Director and Principal Conductor towards: scholarships for children who might not otherwise be able to take up their places, an annual prize to a member of Under 13 Orchestra, and the purchase of musical equipment for the general benefit of current and future members of NCO orchestras.

1978 Association

This fund represents money donated by Mr John and Mrs Faith Guthrie to support the establishment of a legacy fund for the charity

General Manager

This fund represents amounts received towards the costs of the new general manager.

Music support

This fund represents amounts received towards the cost of music hire.

Transfers between funds

The transfers between funds represents the contribution from restricted funds towards core activities of the charity and the purchase of fixed assets, as agreed by the donor, for use in core activities.

20 Employee benefit obligations

Pension contributions amounting to £6,745 (2019: £6,424) were recognised as an expense in the SoFA in respect of the Charity’s defined contribution pension scheme. These costs are charged in full to unrestricted funds.

21 Contingent liabilities

The client has an obligation under their rental lease to make good the property at the end of the lease. No provision has been made for this liability as the cost cannot be reliably quantified.

Page 29

National Children's Orchestras of Great Britain Notes to the financial statements for the year ended 31 December 2020

22 Related party disclosures

During the year a number of the trustees made donations to the Charity, these were made without condition.

During the year 1 trustee was paid a total of £1,200 for services as tutor.

During the previous year 3 trustees and persons closely connected to them were paid a total of £7,925 for services as tutors/conductors on the courses and at the concerts and for adjudicating at the auditions. In addition to this, expenses were paid to them totalling £908 in respect of these services.

The fees paid were in line with those paid to other conductors and tutors providing similar services to the Charity.

23 Deferred income

Accruals and deferred income includes the following items of income which have been deferred as at 31 December 2020:

Membership deferred at 1 January 2020
Released to income in the year
Membership deferred at 31 December 2020		 2020
£
50,742
(50,742)
42,000
42,000		 2019
£
88,541
(88,541)
50,742
50,742

Membership relates to the calendar year, places are awarded at the end of the previous year and fees are often received in advance of the start of that year. In accordance with the accounting policy, membership income received in relation to the following year is deferred.

24 Post balance sheet events

As detailed further in the Trustees report, the Trustees made the difficult decision to cancel all residential activity during 2021 due to uncertainty around social distancing requirements. The charity aims to deliver local, replacement orchestral days in the autumn of 2021, on the basis that social distancing is no longer required. The charity is continuing to deliver an extensive digital programme, NCO Online 2021.

The charity moved premises in May 2021 to Unit 2.3 Streamline, 436-441 Paintworks, Bristol BS4 3AS.

Page 30

National Children's Orchestras of Great Britain Notes to the financial statements for the year ended 31 December 2020

25
Comparatives for the statement of financial activities
Income and Endowments from
Donations and legacies
Charitable activities
Auditions
Concerts
Regionals
Membership fees
Other trading activities
Investment income
Other income
Total
Expenditure on
Raising funds
Charitable activities
Residencies
Auditions
Concerts
Bursaries and scholarships
Regionals
Total
Net gains on investments
Net Income/(Expenditure)
Transfers between funds
Net movement in funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
201,721
17,268
61,478
65,673
741,500
28,925
2,128
199,372
1,318,065
133,690
811,982
117,264
116,460
13,226
110,936
1,303,558
2,047
16,554
(432)
16,122
691,883
708,005		 Restricted funds
£
143,300
-
-
-
-
-
-
-
143,300
-
23,546
-
-
144,212
-
167,758
-
(24,458)
432
(24,026)
118,631
94,605		 Total funds as
restated
£
345,021
17,268
61,478
65,673
741,500
28,925
2,128
199,372
1,461,365
133,690
835,528
117,264
116,460
157,438
110,936
1,471,316
2,047
(7,904)
-
(7,904)
810,514
802,610

Page 31