The Pilgrim Band Trust - Charities report - 21.2

REGISTERED COMPANY NUMBER: 07553726 (England and Wales)

REGISTERED CHARITY NUMBER: 1140954

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

FOR

THE PILGRIM BAND TRUST

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

to

8

Notes to the Financial Statements

9

to

17

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 March 2021. 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).

The registered name of the charity is The Pilgrim Band Trust.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The primary objective of the Pilgrim Band Trust is to advance the education of children living in Reigate and surrounding areas in the knowledge and appreciation of music.

Significant activities

The trust uses its funds to promote the playing of musical instruments, including the voice, and the enjoyment of music by young people. The trust supports both individuals and schools within the trust's geographical remit (Reigate and surrounding areas) which the trustees have extended in recent years. Through its links with Surrey Arts, the trust seeks to provide a broad range of support through schools and to individuals. The trust gives priority to State schools and as far as possible, to children or parents of limited means. Groups trained by the trust perform free of charge at public events. The trust also supports young people's music more broadly through the sponsorship of the local music festival.

Tuition is provided on a weekly basis during school term time from our premises in Reigate, Surrey. There are usually about 100 children attending regularly, but during the Covid 19 pandemic the premises have been closed for extended periods and attendance has been limited when the premises have been open. However, many pupils were able to continue their tuition via Zoom meetings with their teachers.

One-to-one and small group tuition is provided for acoustic and electric guitar, piano, singing, drums and steel pans. As with the tuition, instruments are provided free of charge whilst the children remain members of the band. Students often study more than one instrument. Ill health of our steel pans tutor has resulted in a temporary cessation of that activity.

Tuition is led by a number of specialist adult teachers assisted by senior members of the band, who have advanced to the stage where they can teach younger members. Essential to the running of our operations is the group of loyal volunteer helpers, mainly drawn from parents and grandparents.

The band welcomes any young person who wishes to join without audition or condition provided they attend regularly and respect the student rules. Students may start their studies on any instrument within the band, though many start on the acoustic guitar where they can learn the basics of performance before moving on to their instruments.

Public benefit

The trustees confirm that they have referred to the guidance contained in the Charity Commissioner's general guidance on public benefit when reviewing the Charity's aims and objectives and in planning future activities.

The trustees are satisfied that the charity continues to meet the required public benefit test through its objectives and activities.

Our working arrangement with Surrey Arts, through which the trust subsidises individual music lessons in Surrey County Schools, continues to operate satisfactorily. In response to proactive seeking of proposals from local schools funding is being used for the purchase of instruments and equipment and teaching in local schools.

We offer a wide range of music lessons. Prior to the Covid 19 pandemic, our pupil numbers were consistent, with 100 young people benefitting from weekly tuition. We look forward to returning to these tuition levels once the pandemic has subsided.

FINANCIAL REVIEW

Financial review

The trust made a surplus of £34,268 (2020 deficit: £61,002) for the year prior to realised and unrealised investment gains of £706,546 (2020: investment losses £71,185).

Investment policy and objectives

The ongoing concern of the trustees is to manage trust funds and investments to ensure the charitable work started by Edward West continues and grows.

The trust aims to protect the real value of the trust's capital whilst ensuring that the financial resources needed for teaching programme and to support music locally are maintained in real terms and is not subject to large fluctuations and without resorting to external fundraising. In this way, the trustees are able to consider both current and future beneficiaries. The trustees have unrestricted powers of investment and may spend capital and accumulate unspent income.

Our long-term policy is therefore the pursuit of a total real return, taking income and capital growth together, subject to securing an adequately diversified portfolio of investments. This is achieved primarily through use of Common Investment Funds and by investing in a range of asset classes. The trust has continued to reduce its residential property holdings, reinvesting the proceeds on a gradual basis into equity and commercial property funds consistent with our investment policy. No ethical restrictions apply, although the trustees reserve the right to exclude from the portfolio any investments in companies whose representation might prove damaging, directly or indirectly, to the purposes or reputation of the charity.

The investment portfolio was negatively impacted by volatility in the UK and international equity markets throughout the financial year. The property portfolio consists of residential properties in London which have maintained their value. The Trustees remain satisfied that the investment policy will deliver the required returns in the long-term.

Reserves policy

The trustees wish to retain and invest trust's reserves in order to provide sufficient income to fund a full programme of band activity and maintain current levels of support for schools and young people without resorting to external fundraising or charges to pupils.

The range of our activities has increased substantially over recent years. Reserves are required to enable this expanded outreach of the trust and to continue to invest in improving and maintaining the facilities at Clevelands. The trustees also need to take into account that portion of the trust's property investments that are jointly held and not freely disposable. The trustees have determined that free reserves of between £2.5 and £3 million are required to meet these objectives. At 31st March 2021, the value of free reserves (excluding the value of the trust's tangible fixed assets, held in a designated fund) amounted to £4.95 million.

FUTURE PLANS

In addition to continuing a full programme of classes at Clevelands, the trust plans will continue to build on the work done in recent years by reaching new schools and providing continuation or additional funding to those who have successfully used previous funding. We will seek to extend the reach of our subsidy arrangement with Surrey Arts supporting music tuition in Surrey County Schools.

At Clevelands, a rolling programme of internal redecoration will continue. Plans to set up a website for the Trust will be progressed.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure, Governance and management

The original Pilgrim Band Trust was founded as a charity by Edward Pannett West on 1 February 1979 by Deed of Trust. In addition to gifts made during his lifetime, at his death on 10 December 1985, he bequeathed to the trust the freehold property known as Clevelands, 13 Furzefield Road, Reigate together with the residue of his estate.

By resolution of the trustees dated 25 February 2011, a company limited by guarantee, The Pilgrim Band Trust (Company Number 07553726) was incorporated in England and Wales, under a Memorandum of Association on 7 March 2011, and is governed by its Articles of Association. The charity was registered with the Charity Commission (Registered Charity Number 1140954) on 21 March 2011. The charitable objects of this new charity are identical to those of the original Pilgrim Band Trust.

Edward West had the original inspiration to provide children with the opportunity to learn to play an instrument as part of a Band, The Pilgrim Band, and perform concerts in the local area. Fundamental to his vision was the idea that any child should have the opportunity to make music and that tuition and the loan of an instrument would be free of charge.

Funds from trust investments are also used to support other appropriate charitable purposes including assistance with the tuition fees of young musicians in need whose abilities range from the keen to the very talented. The trust is also a key financial supporter for the Reigate and Redhill Music and Drama Festival. Grants are also made to schools to purchase musical equipment and run music programmes.

Overall management is in the hands of the trustees who meet regularly to manage the funds and investments and make decisions on the overall policy and direction of trust activities.

New trustees are appointed by existing trustee (members) of the company. The Governing document requires that one third of the trustees retire by rotation annually with re-appointment permitted. The minimum number of trustees is three, with no maximum.

Where vacancies arise, potential candidates from the local community are sought by the trustees - either by recommendation or personal contact. In considering potential candidates, the trustees take into account the background, professional experience and willingness of the candidate to represent the various stakeholders in the trust's work. New trustees are provided with detailed briefings on the work of the trust by existing trustees and attend one or two meetings of the trustees prior to appointment. They are also provided with a copy of the Governing Document, Trust Policies, the most recent Trustees' Report and Financial Statements as well as minutes of trustee meetings.

The trust has one full time paid employee, the Band Principal, who plans and manages the tuition provided at Clevelands. The Principal is assisted by a number of specialist adult teachers who are paid by the session. The Principal is also assisted by a volunteer group of parents and friends who help with transport and other support activities.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The trustees have assessed the major risks to which the trust is exposed and established systems to mitigate those risks. The Risk Register is regularly reviewed and updated and responsibility for individual risks is assigned to an accountable trustee.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

07553726 (England and Wales)

Registered Charity number

1140954

Registered office

Clevelands

13 Furzefield Road

Reigate

RH2 7HG

Trustees

Ms K J Pender

Mrs M A Smith

P B White

J A Wood

R Key

Mrs A Unwin

P G Morris (appointed 10/9/2021)

Independent Examiner

P D Longstaff FCA

Ellis Atkins

Chartered Accountants

The Atrium Business Centre

Curtis Road

Dorking

Surrey

RH4 1XA

Bankers

Cafcash Limited

King's Hill

West Malling

Kent

ME19 4TA

Solicitors

Morrisons Solicitors LLP

Clarendon House

Clarendon Road

Redhill

Surrey

RH1 1FB

Investment Managers

CCLA

Senator House

85 Queen Victoria Street

London

EC4V 4ET

Approved by order of the board of trustees on 31 January 2022 and signed on its behalf by:

Mrs M A Smith - Trustee

Independent examiner's report to the trustees of The Pilgrim Band Trust ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2021.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

P D Longstaff FCA

Ellis Atkins

Chartered Accountants

The Atrium Business Centre

Curtis Road

Dorking

Surrey

RH4 1XA

31 January 2022

31/3/21

31/3/20

Unrestricted

Total

funds

funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

-

1,026

Investment income

2

158,643

147,551

Total

158,643

148,577

EXPENDITURE ON

Raising funds

Investment management costs

3

11,402

7,856

11,402

7,856

Charitable activities

4

Promotion of the playing of musical instruments, the enjoyment of music by young people by giving the opportunity to play in a band.

96,867

101,445

Provision of grants to schools, individuals and other organisations to promote the playing of musical instruments.

16,106

25,278

Capital project-grants towards the provision of music practice and tuition facilities for schoolchildren and young people within the local area.

-

75,000

Total

124,375

209,579

Net gains/(losses) on investments

706,546

(71,185

)

NET INCOME/(EXPENDITURE)

740,814

(132,187

)

RECONCILIATION OF FUNDS

Total funds brought forward

5,066,101

5,198,288

TOTAL FUNDS CARRIED FORWARD

5,806,915

5,066,101

31/3/21

31/3/20

Unrestricted

Total

funds

funds

Notes

£

£

FIXED ASSETS

Tangible assets

11

853,683

856,622

Investments

12

4,841,413

4,134,867

5,695,096

4,991,489

CURRENT ASSETS

Debtors

13

22,408

10,467

Prepayments and accrued income

1,880

1,880

Cash at bank

104,483

81,584

128,771

93,931

CREDITORS

Amounts falling due within one year

14

(16,952

)

(19,319

)

NET CURRENT ASSETS

111,819

74,612

TOTAL ASSETS LESS CURRENT LIABILITIES

5,806,915

5,066,101

NET ASSETS

5,806,915

5,066,101

FUNDS

15

Unrestricted funds:

General fund

3,038,588

3,001,381

Designated Fund- Value of tangible fixed assets

853,683

856,622

Revaluation Fund

1,914,644

1,208,098

5,806,915

5,066,101

TOTAL FUNDS

5,806,915

5,066,101

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

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

The financial statements were approved by the Board of Trustees and authorised for issue on 27 January 2022 and were signed on its behalf by:

M A Smith - Trustee

P G Morris - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, 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 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.

The financial statements present information about the charity as an individual undertaking and not as a group.

There are no material uncertainties regarding the charity's ability to continue as a going concern.

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.

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.

Improvements to property

-

straight line over 7 years

Musical Instruments

-

Straight line over 4 years

Office and computer equipment

-

Straight line over 3 years

The Companies Act 2006 requires freehold property to be depreciated over its estimated useful life. The trust's policy is to maintain its freehold property to a high standard through a continual programme of maintenance. Depreciation is not provided on the freehold property but, in the opinion of the trustees, the residual value is such that any depreciation charge and accumulated depreciation is immaterial. Annual impairment reviews are carried out.

Items of equipment are capitalised where the purchase price exceeds £50. Rare musical instruments which maintain their value are not depreciated.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

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

Restricted funds can only 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.

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the accounts.

Investment income and gains are allocated to the appropriate fund.

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.

Donated goods and services

When applicable, donated goods and services are included as incoming resources in the Statement of Financial Activities where the benefit to the charity is reasonably quantifiable and measurable. Such donated goods and services are shown at the open market value of such goods and services.

Investment property

Investment properties are shown within investments in the financial statements. The property valuations are reviewed annually by the trustees and the values are updated in the financial statements only when there has been a significant change in value. The property values were last updated in the year ended 31st March 2020.

2.	INVESTMENT INCOME

31/3/21

31/3/20

£

£

Investment property income

23,359

18,837

Common investment fund income

135,234

128,346

Bank and Building Society interest

50

368

158,643

147,551

3.	INVESTMENT MANAGEMENT COSTS

31/3/21

31/3/20

£

£

Investment property management

11,402

7,856

4.	CHARITABLE ACTIVITIES COSTS

Grant

funding of

Direct

activities

Support

Costs (see

(see note

costs (see

note 5)

6)

note 7)

Totals

£

£

£

£

Promotion of the playing of musical instruments, the enjoyment of music by young people by giving the opportunity to play in a band.

80,423

-

16,444

96,867

Provision of grants to schools, individuals and other organisations to promote the playing of musical instruments.

1,480

13,259

1,367

16,106

81,903

13,259

17,811

112,973

5.	DIRECT COSTS OF CHARITABLE ACTIVITIES

31/3/21

31/3/20

£

£

Staff costs

29,570

28,924

Professional music teachers

50,563

41,485

Musical Instruments repairs and maintenance

88

577

Music and concert expenses

110

2,470

Depreciation

1,572

1,741

81,903

75,197

6.	GRANTS PAYABLE

31/3/21

31/3/20

£

£

Provision of grants to schools, individuals and other organisations to promote the playing of musical instruments.

13,259

25,278

Capital project-grants towards the provision of music practice and tuition facilities for schoolchildren and young people within the local area.

-

75,000

13,259

100,278

The total grants paid to institutions during the year was as follows:

31/3/21

31/3/20

£

£

Individual tuition and support

-

3,760

Merstham School

-

30

St John's School, Redhill

-

1,786

St Matthew's School, Redhill

1,336

2,580

Wray Common Primary School

-

1,160

Reigate & Redhill Music Festival

3,200

3,000

St Bede's School, Redhill (includes resources shared with other schools)

6,273

75,000

Reigate Parish Church Primary School

158

2,518

Merstham Park School

-

496

Horley Schools Hub

-

6,000

St Francis' Catholic Primary School

-

480

10,967

96,810

The total grants paid to individuals during the year was as follows:

31/3/21

31/3/20

£

£

Individual tuition and support

1,596

3,468

St Bede's School, Redhill (includes resources shared with other schools)

696

-

2,292

3,468

7.	SUPPORT COSTS

Governance

Other

costs

Totals

£

£

£

Promotion of the playing of musical instruments, the enjoyment of music by young people by giving the opportunity to play in a band.

11,431

5,013

16,444

Provision of grants to schools, individuals and other organisations to promote the playing of musical instruments.

1,367

-

1,367

12,798

5,013

17,811

8.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31/3/21

31/3/20

£

£

Independent Examiners' remuneration

1,440

1,440

Depreciation - owned assets

2,939

4,108

Accountancy services provided by Independent Examiner : £1,140 (2020 - £1,140).

9.	TRUSTEES' REMUNERATION AND BENEFITS

No trustees received any remuneration or other benefits.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.

10.	STAFF COSTS

31/3/21

31/3/20

£

£

Wages and salaries

28,440

27,960

Other pension costs

1,130

964

29,570

28,924

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

31/3/21

31/3/20

Average number of employees

1

1

No employees received emoluments in excess of £60,000.

11.	TANGIBLE FIXED ASSETS

Office

Improvements

and

Freehold

to

Musical

computer

property

property

Instruments

equipment

Totals

£

£

£

£

£

COST

At 1 April 2020 and 31 March 2021

850,000

40,951

17,595

7,114

915,660

DEPRECIATION

At 1 April 2020

-

39,138

12,786

7,114

59,038

Charge for year

-

1,367

1,572

-

2,939

At 31 March 2021

-

40,505

14,358

7,114

61,977

NET BOOK VALUE

At 31 March 2021

850,000

446

3,237

-

853,683

At 31 March 2020

850,000

1,813

4,809

-

856,622

12.	FIXED ASSET INVESTMENTS

Listed

investments

£

MARKET VALUE

At 1 April 2020

4,134,867

Revaluations

706,546

At 31 March 2021

4,841,413

NET BOOK VALUE

At 31 March 2021

4,841,413

At 31 March 2020

4,134,867

There were no investment assets outside the UK.

Cost or valuation at 31 March 2021 is represented by:

Listed

investments

£

Valuation in 2021

4,841,413

The historical cost of fixed asset investments was £2,799,934 (2020: £2,799,934).

13.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/3/21

31/3/20

£

£

Rental income and tenant

deposits due

22,408

10,467

14.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/3/21

31/3/20

£

£

Social security and other taxes

1,364

1,298

Accrued expenses

15,588

18,021

16,952

19,319

15.	MOVEMENT IN FUNDS

Net

movement

At

At 1.4.20

in funds

31.3.21

£

£

£

Unrestricted funds

General fund

3,001,381

37,207

3,038,588

Designated Fund- Value of tangible fixed assets

856,622

(2,939

)

853,683

Revaluation Fund

1,208,098

706,546

1,914,644

5,066,101

740,814

5,806,915

TOTAL FUNDS

5,066,101

740,814

5,806,915

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

158,643

(121,436

)

-

37,207

Designated Fund- Value of tangible fixed assets

-

(2,939

)

-

(2,939

)

Revaluation Fund

-

-

706,546

706,546

158,643

(124,375

)

706,546

740,814

TOTAL FUNDS

158,643

(124,375

)

706,546

740,814

Comparatives for movement in funds

Net

movement

At

At 1.4.19

in funds

31.3.20

£

£

£

Unrestricted funds

General fund

2,989,563

11,818

3,001,381

Designated Fund- Value of tangible fixed assets

854,442

2,180

856,622

Revaluation Fund

1,279,283

(71,185

)

1,208,098

Designated Fund- Capital projects

75,000

(75,000

)

-

5,198,288

(132,187

)

5,066,101

TOTAL FUNDS

5,198,288

(132,187

)

5,066,101

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

148,577

(136,759

)

-

11,818

Designated Fund- Value of tangible fixed assets

-

2,180

-

2,180

Revaluation Fund

-

-

(71,185

)

(71,185

)

Designated Fund- Capital projects

-

(75,000

)

-

(75,000

)

148,577

(209,579

)

(71,185

)

(132,187

)

TOTAL FUNDS

148,577

(209,579

)

(71,185

)

(132,187

)