ANNUAL REPORT - Nordoff Robbins · Trustees’ annual report The Trustees, present their Annual Report together with the audited financial statements of Nordoff-Robbins Music Therapy

ANNUAL REPORT

For the year ended 31 December 2015

Nordoff Robbins Annual Report 2015 2

Reference and administrative information 03

Nordoff Robbins – life-changing music 04

Our music therapy services 04

Our values 04

Welcome – David Munns, Chair of Trustees 05

Looking forward – Julie Whelan, Chief Executive 06

Review of the year 2015 07

Goal 1 08

Our impact 08

Betty’s story 09

Goal 2 10

Goal 3 11

Claudia’s story 12

Goal 4 13

Financial review 14

Structure, Governance and Management 18

Financial statements 21

CONTENTS

Annual ReportFor the year ended 31 December 2015


Reference and administrative information Our people

Statutory Auditor Crowe Clark Whitehill LLP Aquis House

49-51 Blagrave Street

Reading RG1 1PL

Bank and Investment advisors Coutts & Co 440 Strand

London WC2R 0QS

Wealth and Investment Investec2 Gresham Street

London EC2V 7QN

Solicitors Bircham Dyson Bell 50 Broadway

Westminster

London SW1H 0BL

SheridansSeventy Six Wardour Street

London W1F 0UR

Nordoff-Robbins Music Therapy – a company limited by guarantee (trading as Nordoff Robbins)

The address of the registered office is: 2 Lissenden Gardens, London, NW5 1PQ.

Company number: 1514616

Registered Charity Number: 280960

Board of Trustees Mr. D Munns OBE (Chairman)

Mr. M D Miller (Treasurer)

Ms. J Bryant

Mr. P Crosthwaite

Mr. H Jones

Mr. M Lymath

Mr. B F McLaughlin (Resigned 5th April 2015)

Mr. J F Mills

Mr. N Warnock

CEOMrs. J Whelan

SecretaryMr. C Dew


MUSIC THERAPY CAN BE LIFE-CHANGING FOR SO MANY PEOPLE.

When delivered by a trained practitioner, music therapy can be used to support people living with a wide range of needs. It can help a child with autism to communicate, reduce anxiety for those living with dementia or provide comfort and celebrate the life of someone facing terminal illness.

Our vision is a world where the life-changing power of music is available to all who need it.

Our mission is to bring the life-changing power of music to as many people as possible, through the delivery of:

• High-quality music therapy services across the UK

• World-leading music therapy training

• Research to demonstrate and continuously improve the impact of music therapy

Our music therapy servicesWe deliver our services in two ways – through direct referral to our dedicated music therapy centres and through partnerships with a wide range of organisations.

Direct services Located in London, Manchester and Croydon, these services enable people to access music therapy directly and in 2015 they continued to attract significant demand.

People accessing our direct services are supported in either a one-to-one setting or as part of a larger group and can access the service for as long they need.

We are committed to continuing this direct referral model as part of our ongoing work as we know that many people derive significant benefit from it.

PartnershipsIn 2015 we partnered with 95 organisations to provide music therapy and this model of delivery continues to serve as an engine of growth for the charity. Our valued partners are wide-ranging and include schools, care homes and hospitals. They enable Nordoff Robbins to reach a much greater number of people in a cost-effective way.Our focus in 2016 will be to form new partnerships, both in areas where we currently deliver services but also in areas where music therapy is limited or not available.

Our values Our values define our actions and drive us to bring the life-changing power of music to as many people as need it.

Focusing on people and music We put the wellbeing of our beneficiaries and their families and carers at the heart of all we do. We value all colleagues, trustees, partners, supporters and other stakeholders. Music and people are at the heart of all we do – we work creatively with music to make a positive change to peoples’ lives.

Striving for quality We strive for quality in every interaction and communication with all our beneficiaries, stakeholders, donors, partners and each other.We are committed to the music-centred Nordoff Robbins approach in all of the work we do, in our delivery, training and education and in our research thinking.

Always improving We follow the example of our founders Paul Nordoff and Clive Robbins in always striving for improvement across the organisation by embracing new opportunities for bringing music’s help to people who could benefit from it.

Nordoff Robbins is the leading independent music therapy charity in the UK, dedicated to changing the lives of vulnerable and isolated people. We support thousands of people through our own centres and by working in partnership with a wide range of organisations including care homes, schools and hospitals.

Annual ReportFor the year ended 31 December 2015


STRATEGIC REPORT. 2015 HAS BEEN A SIGNIFICANT YEAR FOR NORDOFF ROBBINS.

In 2015 we delivered 19,226 music therapy sessions, through our own centres and by working in partnership with 95 organisations including schools, care homes and hospitals. 4,453 people accessed our services – many of them for long-term, in-depth and tailored support. As a charity we remain committed to supporting people for as long as they need it.

In this report you will read about Betty and Claudia. They are at very different ends of the age spectrum but share one thing in common - music has changed their lives. Our music therapists have supported Claudia to communicate and Betty to unlock memories and share them with family members. As Claudia’s mother, Gabriella says “Through Nordoff Robbins, Claudia is living her life to the fullest; music has finally given her world some meaning.”

2015 has been a year of both celebration and change. We are marking 40 years of providing a much valued service and have restructured the organisation so that we can reach more people across the UK*. People like Betty and Claudia who we know would benefit from our work.

Last year we were joined by Julie Whelan, our new Chief Executive. As the catalyst for change, Julie and her leadership team have developed a robust strategy which is allowing us to grow our services across the UK whilst retaining the quality and integrity that we are known for.

I wanted to take this opportunity to say thank you to all of our valued supporters including our trustees, staff and funders. People from all walks of life volunteer to help us, from the very famous to the parent of children who access our services. All of you are important to us and it is thanks to your time, energy and generosity that we are able to transform lives through music.

From our humble beginnings delivering a handful of services in London 40 years’ ago, we are now supporting more people than ever across the country.

WelcomeDavid Munns, Chair of Trustees

4,453people accessed our services – many of them for long-term, in-depth and tailored support.

David Munns Chair of Trustees

*Recognising service delivery in Scotland is delivered through our sister organisation Nordoff Robbins Scotland.


Looking forwardJulie Whelan, Chief Executive

LOOKING FORWARD. OUR NEW STRATEGY IS AMBITIOUS AND RIGHTLY SO.

People like Betty and Claudia (who feature in this report) get so much out of the service we provide and that is why we want to reach many more people like them.

Our new strategy is ambitious and rightly so. By 2020 we want to double the amount of people that we support, providing more services across the UK*. Music therapy can be of benefit to people with a range of disabling conditions and is cost effective. We are confident that we can help policy makers and organisations deliver more for less on tight budgets.

I am delighted to announce that we are close to launching a new service in Newcastle and will soon be establishing our first provision in Wales. We will also be expanding our services in London and the South East, the North West and Yorkshire. The need is there and we are committed to meeting it.

Growth is important but we are also committed to retaining the quality of our service. I am proud that we are recognised as leaders in the field of music therapy and we will continue to offer first-class training and research to further develop our work.

The next 12 months will bring many exciting things for Nordoff Robbins, not least our first national awareness day. As the ‘music industry’s charity of choice’ we are lucky to receive the support of many talented artists and we look forward to sharing their music with you.

Music is something that is important to all of us but for the people that we support it can be life-changing. I look forward to your continued support of our vital work over the next year.

Since joining Nordoff Robbins in January 2015 I have seen our skilled music therapists support so many people to make positive changes to their lives.

Julie Whelan Chief Executive

Trustees’ annual reportThe Trustees, present their Annual Report together with the audited financial statements of Nordoff-Robbins Music Therapy – the Company (also “Charity”, “Charitable Company”) and the group for the year ended 31 December 2015. The financial statements and the annual report have been prepared in order to comply with the Charity’s governing document, its Memorandum and Articles of Association, Companies Act 2006, Charities Act 2011 and the Statement of Recommended Practice, Accounting and Reporting by Charities, issued by the Charity Commission (The Charities SORP 2015).



In 2015 we signed off our four-year Strategic Plan. We know that many more people would benefit from our services and our aim is to reach them. Major changes to the way that we operate have already been made and we know that we are now in good shape to grow our services and maintain the quality and integrity that we are recognised for.

Our four strategic goals, signed off part-way through 2015, are listed below and we have included the progress made against each of them up until December 2015.

REVIEW OF THE YEAR 2015

Review of the Year 2015Our four strategic goals


To become a UK* wide charity, ensuring our music therapy is more accessible and that we double the number of people whose lives we transform.

What we achieved in 2015:Service delivery• A high-quality service was delivered to

more people than ever before. In 2015 our trained music therapists delivered 19,226 sessions to 4,453 people

• We worked in partnership with 95 organisations to deliver high-quality and cost-effective music sessions across 39 local authority areas in the UK

• We increased the number of music therapy days delivered by 46% by offering all of our music therapists three-day-a- week contracts

• Through our funding of Nordoff Robbins Scotland we enabled beneficiaries to access over 1,000 hours of music therapy

• We implemented a new regional development plan and recruited four Regional Managers to manage and grow delivery in six new areas across the UK

• We secured our first strategic delivery partnership in Wales and progressed our plans to open a new Nordoff Robbins centre in Newcastle.

Education and training • We trained 13 new fully-qualified Nordoff

Robbins music therapists, all of whom graduated from our Masters of Music Therapy (MMT) Programme in Manchester

• 14 new students started our MMT Programme, a course that will now be validated by our new academic partner, Goldsmiths, University of London

• We piloted our first graduate employment scheme, using a generous BRIT Trust donation to fund seven, three-day-a-week placements

• We saw our first PhD student gradate, becoming Doctor of Music Therapy

• A new clinical supervision model was implemented, supporting our therapists to deliver and maintain a high-quality service.

Our impactOur commitment to research and evaluation informs our practice and education. It helps us to provide the best possible service to the people that we support and contribute to the development of knowledge in the field nationally and internationally. In 2015 we conducted a comprehensive evaluation of six services to explore the impact that our work had on 121 direct beneficiaries, parents and staff. These reports focussed on a cross-section of partner organisations including hospitals, schools and rehabilitation centres and found that:

89%said that music therapy had a positive or creative experience

87%said that music therapy had enhanced their quality of life

86%said that music therapy had enabled social skills and interaction

Direct beneficiaries

78%said that music therapy had improved their relationship with their relative or child

73%said that music therapy had enhanced staff skills and understanding

88%said that music therapy had changed positively the atmosphere of the organisation

Families and carers Staff and partner organisation

GOAL 1

Review of the Year 2015Goal 1



Music and dancing was a huge part of Mum’s life. She came from a musical household and loved to go dancing on a Saturday night in Camden. That’s where she met my Dad. He was a fiddle player, one of the first to gig in London.

Mum was diagnosed with dementia aged 86. She started to get very confused and anxious about things and that’s when the hallucinations started; the man and boy on the stairs, the wild parties next door. She was scared and so were we.

Dementia is a cruel disease. It’s taken Mum away and left a hollow shell. I live with her and yet she has no idea who I am. Some days I’m her mother but mostly I’m that nice lady. It breaks my heart.

Kariina, the Nordoff Robbins therapist, has used music to unlock a part of Mum that I thought was lost forever. She plays the old Irish tunes that connect with Mum and it takes her back to when she was younger. She remembers the words and sings; she even gets up to dance.

Nordoff Robbins has brought music back into mum’s life and it’s through music that we have found a way to remember the good times, have fun and see her in a way that we will always want to remember her.

Music won’t cure her dementia, we know that. But it does make the life she has happier, more fulfilling and gives her a way to communicate with us and the world around her.

Elizabeth, Betty’s daughter

LOOKING FORWARD – OUR 2016 TARGETS • Deliver 28,500 music therapy

sessions to 6,900 people

• Deliver music therapy in at least 100 partner organisations and across more than 40 local authorities

• Establish and grow our new music therapy services in Wales and Newcastle

• Support 12 music therapists to graduate from our London MMT programme

• Offer employment opportunities to at least 50% of our 2016 MMT graduates

• Implement a best practice framework, which will include a new clinical supervision scheme, to ensure the continued high quality of our service delivery.

“IT’S TURNED A LIGHT ON THAT WE THOUGHT WAS LONG GONE”

Review of the Year 2015Betty’s Story



LOOKING FORWARD – OUR 2016 TARGETS • Achieve a 6% increase in net fundraised income

• Diversify fundraised income and implement a new set of metrics to provide clarity on return on investment

• Developed a robust regional fundraising strategy aligned with our awareness day.

To diversify and secure sustainable income sources so that we can make our services accessible to more people.

What we achieved in 2015:

Fundraising• We invested in our fundraising team

and grew net fundraised income by 5% (including our share of the Music Industry Trust Awards joint venture)

• We continued to run a number of successful fundraising events, supported by long-standing donors and supporters. Our 40th anniversary Silver Clef Lunch was our most successful to date, raising a net figure of £790,000

• The Music Industry Trust Awards recognised the achievements of Simon Cowell and raised more than ever for Nordoff Robbins and the Brit School

• The Football Extravaganza event which in 2015 recognised David Beckham, also proved to be hugely popular, raising over £378,000 net of event costs

• Income from Trusts again proved to be successful and included a £60K donation from the BRIT Trust which was used to fund the placement of our graduates with partner organisations in the North West of England. This was in addition to the £350k core funding generously provided

• Corporate fundraising was a key focus for us last year. We secured a number of key partnerships including Universal Music, Crystal Palace FC and Young Voices, generating a total of £128,000

• A growing number of individual supporters continued to support us, organising events and taking part in various sporting challenges. They raised an amazing £194,000.

GOAL 2

“The work which Nordoff Robbins does is incredible. Music is an international language so there is no better therapy.” Peter Andre, TV Personality

“As a long-standing Ambassador for Nordoff Robbins I am a dedicated believer in the power of what they do.” Laura Wright, Recording Artist

“Over the years, Universal has enjoyed a special relationship with Nordoff Robbins and we are proud that our staff choose to support their work. Music drives everything that both organisations do and the charity holds a special place in our heart – as is the case across the music industry.” Janie Orr, Chief Executive, EMI Music Sound Foundation and head of the Universal Music charity office

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To build on our profile and presence to become a household and credible name in relation to music therapy.

GOAL 3Research • Nordoff Robbins colleagues and PhD

students contributed to 17 publications, 37 presentations and teaching resources and 22 music therapy projects. These activities informed best practice in our services and contributed to the development of disciplinary knowledge nationally and internationally

• A comprehensive evaluation of six key Nordoff Robbins services delivered in different partner organisations found that our work had a positive impact on beneficiaries, their parents and staff

• Our two-fold long-term research project on music therapy in dementia care found that music therapy has a ‘ripple effect’. We found that music therapy not only transforms the lives of those diagnosed with dementia, but also enhances resident-carer relationships and communities. We found also that care home managers, staff, as well as family and friends of care home residents, consider music therapy to fulfil a large proportion of the objectives of the UK Dementia Strategy

• We hosted the second Nordoff Robbins Plus conference ‘Evaluating music therapy: Considering value, benefit and impact’ in partnership with leading care home provider, Barchester Healthcare. This event brought together researchers and practitioners to discuss the impact of music therapy and how best to explore and represent it

• Our first PhD student, Stuart Wood graduated and his doctoral thesis led to the publication of the book called A Matrix for Community Music Therapy Practice.

Marketing and communications• We completed an in-depth stakeholder

consultation for our new brand

• A new marketing and communications strategy was implemented which will support our planned growth in income, awareness and referrals

• We completed the research phase for the redevelopment of our new website (launched February 2016), which will provide a vastly improved digital experience for all stakeholders

• We established a new set of competencies for all Nordoff Robbins affiliated organisations operating outside of the UK (as part of Nordoff Robbins International). Along with Nordoff Robbins US, we continue to protect and hold in trust all rights to the Nordoff Robbins name around the world.


LOOKING FORWARD – OUR 2016 TARGETS • Launch our new brand and website• Hold our first ever Nordoff Robbins

Awareness Day (May 2016) that will see leading artists perform gigs and supporters organising their own fundraising events

• Implement our first public affairs strategy

• Contribute to at least 10 leading pieces of music therapy research

• Launch a set of competencies that all Nordoff Robbins international partners will sign up to through licence arrangements

• Publish our 2020 strategic plan and commit to a new performance and accountability process.


Review of the Year 2015Claudia’s Story

I can’t imagine a world without music therapy. For my daughter Claudia, music has brought her to life.

Claudia was born prematurely and totally silent. The special care unit diagnosed only a windpipe problem, but Claudia was in constant pain – she screamed all day, barely able to feed. She didn’t reach any milestones; she couldn’t babble or crawl, couldn’t sit up until 16 months and couldn’t walk until she was four. She had complete sensory overload, which was exhausting.

When a national study of developmental disorders finally diagnosed her with a very rare chromosomal disorder we were determined to get her the help she needed.

We knew that music calmed Claudia and my mother-in-law suggested I contact Nordoff Robbins. One of the most defining moments of our lives was our first visit there.

Without me needing to explain, the therapist Nick just opened the door showing Claudia a wonderful grand piano. She marched straight up to it and played several keys, which Nick mimicked on another piano. Claudia was completely mesmerised. I started crying, a huge weight lifted as I realised this is exactly

what she needed; we had finally found something which would bring happiness for our little girl.

One year on Claudia plays, makes vocalisations and I can now communicate with her; she nods yes if I say ‘let’s go and see Nick’ and shakes excitedly. She recently even attempted her first word! She has incredible rhythm too and now moves her body to music.

Through Nordoff Robbins, Claudia is living her life to the fullest; music has finally given her world some meaning.

Gabriella, Claudia’s mum

“CLAUDIA IS LIVING HER LIFE TO THE FULLEST”


Develop an organisation structure that supports our business.

GOAL 4



We signed off our new four-year strategic plan and a 2016 operational plan

• An organisation-wide restructure was completed which will reduce back office staff costs by more than 20% per annum and increase the number of music therapy days delivered by over 40%

• We completed a skill-set and length of tenure review for the current trustees and in 2016 will appoint two new trustees with expertise in health and social care

• A new appraisal and performance framework was introduced for all staff, aligning individual performance much more closely to strategic objectives

• We finalised plans to locate all London-based support staff in redeveloped state-of-the-art music therapy setting designed by Bradley Van Der Straeten Architects.

LOOKING FORWARD – OUR 2016 TARGETS • Complete the move of all London-based support staff to our redeveloped

Head Office in Lissenden Gardens, creating a world-leading, exemplary music therapy space

• Recruit at least two new trustees with skillsets from the public health sector and to represent the views of our beneficiaries

• Establish our new Music Services Committee• Pilot a new, cloud based IT platform.

“It has been a very positive experience for my partner. I can always tell when he’s had a session by his mood. I strongly believe [music] therapy has helped him progress quicker than he would otherwise and has made him happy.”Partner of patient at a hospital neurological rehabilitation centre

“Our students really flourish during music therapy sessions and all enjoy it and benefit from it. We need more!” Member of staff at school for children with special educational needs

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Results for the year and Financial Position of the group The results of the Charity and Subsidiary companies for the year are shown in detail in the Consolidated Statement of Financial Activities on page 24. In summary, the consolidated total incoming resources were £5,306,315 (2014: £4,753,075) of which £233,646 (2014: £219,437) was from investment income. Resources expended in the year totalled £4,741,342 (2014: £4,580,061) leaving a surplus before revaluations of investments of £564,973 (2014: surplus of £173,014).

Unrealised gains of £13,097 (2014: gain of £112,830) were recognised on the investment portfolio. The performance of the individual subsidiary undertakings are disclosed in note 2.

The Charity wholly owns a subsidiary undertaking, Silver Clef Productions Limited and event sponsorship is channeled through this subsidiary. In addition, the trading subsidiary stages the annual Rugby Fundraising Dinner and receives funds relating to audio and visual rights on previous events. For the year ending 31 December 2015, Silver Clef Productions Limited made a net profit of £315,421 (2014: £261,611) which was gift-aided to the Charity in its entirety. A former wholly owned subsidiary Silver Clef Limited was dissolved voluntarily during 2015 having previously been dormant.

Nordoff-Robbins Music Therapy has a 50% shareholding in the Music Industry Trusts Ltd. Since 2011 this company has been treated in the accounts as a joint venture.

Investment Policy The management of the Charity’s investment fund is delegated to a professional Investment Manager. The Board’s investment policy is to aim for maximum growth in the capital value of the portfolio, whilst providing a steady and growing income stream for the Charity. The Board seeks to control risk through an appropriate diversification of asset classes within the portfolio, to include fixed interest bonds, UK and overseas equities, and cash.

The Board’s Investment Policy includes ethical restrictions which preclude any direct investments where children and/or vulnerable adults are deemed exploited or at risk.

The terms of reference of the Finance Committee include the review of investment performance, which it does on a quarterly basis. The performance of the portfolio is measured against an appropriate bespoke index which reflects the Committee’s guidelines for different asset classes within the portfolio. To date the portfolio has outperformed this index, and the Trustees remain satisfied with the overall investment performance.

Financial Review

The financial Statements have been prepared in accordance with Applicable UK Accounting Standards, Companies Act 2006, the Charities Act (Accounts and Reports) Regulations 2008 and the Charity Commission’s Statement of Recommended Practice 2015, Accounting and Reporting by Charities.

PRESENTATION OF FINANCIAL STATEMENTS.


Financial Review Reserves policy

Free reserves As the largest provider of music therapy in the UK after the NHS, Nordoff Robbins has a significant duty of care to its music therapy beneficiaries across the country, many of whom present with complex physical, emotional and mental health needs.

There is a significant reliance, from our beneficiaries on the music therapy they receive weekly, all year round, and in many of the geographical locations that we operate there is no alternative music therapy provision. In addition, our trainees have committed their own funds to study a two-year programme to qualify as Nordoff Robbins Master of Music Therapists (MMT). The Trustees therefore have determined that it is appropriate to hold free reserves equivalent to two years operating costs to support and safeguard the continuation of music therapy activities and training should the charity suffer financially as a result of any deterioration in economic conditions.

The Trustees are of the view that this level of free reserves is sufficient to provide a safety net for the ongoing care of the charity’s beneficiaries and completion of training either whilst alternative funding streams are sourced, or to allow for a managed wind down of the charity’s activities. Two year’s operating costs relating to our charitable activities equates approximately to free reserves of £5,745,000.

In addition, given the risk inherent in the charity’s fundraising activities, in particular relating to our extensive events programme, the Trustees deem it appropriate to hold as free reserves a sum equivalent to 10% of the following year’s fundraising income budget so as to smooth income during the year should particular events or fundraising streams not perform as anticipated. 10% of the 2016 fundraised income budget equates to a further £403,000 of free reserves.

Target free reserves at 31 December 2015:Two years’ charitable operating costs: £5,745,00010% 2016 fundraised income budget: £403,000Total target free reserves: £6,148,000

The Trustees review the charity’s reserves policy annually in the light of its strategic plans, past fundraising performance and future cash flow needs. There are five key areas that the Trustees have determined our reserves should support:

• Ensuring our services to beneficiaries can be maintained or wound down in a planned and managed way should the charity run into financial difficulties

• Smoothing the risk inherent in the charity’s fundraised income generation plans, particularly in relation to events fundraising

• Designated incremental funding for our strategic development and expansion plans

• Designated funding to maintain our buildings and therapy spaces

• Designated funding to reflect the illiquid nature of that portion of reserves held as fixed assets.


Designated fundsAs part of their review of reserves, Trustees have agreed to the ongoing designation of funds in respect of the charity’s ambitious strategy and growth programme which is now clearly mapped out within Nordoff Robbins’ Strategic Plan 2016-20. Key strands of the charity’s strategic expansion plan include:

• A full refurbishment of our London Headquarters building to ensure it provides an exemplary music therapy space for both teaching and service delivery. To ensure ongoing best value it will also facilitate moving all London-based office staff into one headquarters location

• The launch and ongoing development of a national awareness day, which will directly support the importance of our commitment to regional expansion and regional fundraising

• Seed funding to promote our growth into new regions of the country as we move to becoming a truly national charity. In 2016 we will commit to developing Nordoff Robbins music therapy in both North and South Wales, the North East and in addition continue to strengthen provision within existing delivery locations

• Expenditure on IT infrastructure is now critical and there is a plan to move to a future proof cloud solution and ensure the quality of data protection and regional engagement for all colleagues.

The Trustees previously considered it necessary to designate the sum of £3m

over four years to fund these step-change activities which are planned for completion at various points up to 2020. Expenditure from this designated fund during 2015 totalled £215,481 which included the costs of implementing a root and branch restructure, work on rebranding, protecting our reputation and intellectual property internationally, and replacement of our fundraising database. The balance remaining on the strategic development fund at the end of 2015 was £2,784,519 and it is anticipated that at least £750,000 will be utilised to fulfil the charity’s operational plan during 2016.

The designated fixed assets fund mirrors the net book value of the charity’s tangible fixed assets and, subject to additions, will reduce as assets are depreciated over the course of their useful life. The charity’s asset base is predominantly held as land and buildings used in the delivery of charitable activities. These assets are by nature highly illiquid and cannot be readily converted to cash in times of difficulty, and as such the Trustees do not consider fixed assets to contribute to free reserves. At the end of 2015, the designated fixed asset fund amounted to £2,428,683.

The designated maintenance fund is intended to cover the cost of planned and unplanned repairs, maintenance and major works to the charity’s land and buildings.

The level of designated funds is reviewed annually by Trustees in the context of ongoing operational requirements, and the sum of £250,000 has been set aside for these purposes.

Analysis of designated funds at 31 December 2015:Strategic development fund: £2,802,119Fixed assets fund: £2,428,683Maintenance fund: £250,000Total designated funds: £5,480,802

Analysis of free reserves and total reserves at 31st December 2015The charity’s free reserves were £5,877,441, slightly below the Trustees target of £6,148,000 free reserves. Designated funds set aside by Trustees for specific purposes and to reflect that portion of reserves not readily convertible to cash, amounted to a further £5,480,802. Total reserves at 31 December 2015 were £11,358,243.

Actual free reserves at 31 December 2015 were £5,877,441 which represents a shortfall of £270,559 against the Trustees’ target. As this is within 5% of the target free reserves figure, Trustees deem this within acceptable tolerances and do not consider this to be a significant risk to the charity’s operations and future plans.

Financial Review Reserves policy


Financial Review Fraud policy

Mr M D Miller

Nordoff Robbins is committed to a culture that is one of honesty, integrity and propriety in the delivery of its services, fundraising activities and in the use of public funds.

Nordoff Robbins takes a zero tolerance approach towards fraud. We strive to instill a culture of ethical behaviour throughout the charity and encourage awareness of risk where appropriate, to help mitigate such risk by strengthening preventative and detective controls.

Employees are required to report all reasonable suspicions of actual or attempted fraud and such instances will be investigated.

Principal Risks and Uncertainties In line with due diligence we ensure we manage risks in relation to the core areas identified by the Charity commission: • Governance • Operational • Financial • External • Compliance

Matters pertaining to risk were routinely discussed throughout 2015 by the Finance Committee, the Music Services Committee, the Fundraising Committee and the Leadership Team. The Leadership Team last reviewed key risks in late 2015, at which point the most significant risks were perceived to relate to:

• The capacity of the workforce to meet demand for services

• Comprehensive spending decisions impacting statutory budgets and there being a squeeze on local decision makers to prioritise music therapy

• Unplanned decline in fundraised income impacting on service delivery.

Looking forward, we will present a risk register at every board meeting to ensure that the Board are overseeing the headline risk areas and our associated mitigation. In addition the Finance Committee will review a separate financial risk register as we strive to increase funding and ensure no over-reliance on one income source. Finally the Leadership Team will maintain its own operational risk register which will act as the internal control system to escalate issues to the board when necessary.

Health and Safety procedures are in place and are reviewed and updated annually, with quarterly updates provided to the Board of Trustees.

By order of the Board:

Trustee Date: 30th March 2016


Chief Executive Officer Julie Whelan appointed 26th January 2015

Leadership TeamChris Dew Director of Finance & ResourcesJo Carter Director of Fundraising, Marketing & CommunicationsOksana Zharinova-Sanderson Director of Music Services (Delivery & Chief Practitioner) appointed June 2015Dr Simon Procter Director of Music Services (Education, Research & Quality Assurance) appointed July 2015

Board of Trustees David Munns OBE Chairman

Michael Miller, BSc., ACA, FRSA Treasurer

Neil Warnock Chairman of the Fundraising Committee

Jane Bryant

Perry Crosthwaite

Howard Jones

Mike Lymath

Jeremy Mills, LLB, FRSA

The Board delegates to Committees responsible for various facets of the charity’s governance and to the CEO for overall management. The CEO appoints a Leadership Team to support her in the management of the Charity.

Nordoff Robbins has a strong and robust governance structure alongside the Board.

There are three governance committees

• The Finance Committee (including Audit and Investments)

• The HR Committee (from 2016 this will be the HR and Remuneration Committee)

• The Fundraising Committee.

In 2016 there will be a new Music Services Committee overseeing the work of education, training, research, quality assurance and delivery. This replaces two internal committees that previously reported to the Board but had no Trustee oversight.

The Board of Trustees met three times in 2015 to review the activities of the charity and, most importantly, at their last meeting, to sign off the organisation’s Strategic Plan. The Chief Executive Officer of the Charity reports on all operational matters relating to Nordoff Robbins nationwide including music services, training programmes, research and budgetary matters, as well as overall charity and other strategic matters. The Director of Fundraising or the Chairman of the Fundraising committee reports on all fundraising events and initiatives and the Treasurer reports on all the financial results and position of the Charity. The Chairman of the HR Committee reports on specific HR matters for which the Board has primary responsibility e.g. pensions.

Structure, Governance and Management

Nordoff-Robbins Music Therapy is a registered charity in England and Wales (number 280960) and is constituted as a charitable company limited by guarantee (registered in England and Wales with company number 1514616).

The charity operates under the abbreviated name Nordoff Robbins, and is governed by its memorandum and articles of association dated 13th November 2008.


Recruitment and appointment of board of trustees The membership of the Board comprises music industry leaders, people with business, financial and legal expertise, and professionals who represent the sectors which the charity serves – this includes medical, social services, educational (including SEN) and community arts professionals. Recruitment is via recommendation and appointment through a majority vote of the existing Trustees.

Under the requirements of the Memorandum and Articles of Association the members of the Board are elected to serve for a period of three years after which they must submit themselves for re-election at the next Annual General Meeting and can hold office for three successive three-year terms. Thereafter they are required to stand down for a minimum period of twelve months prior to being eligible for re-election.

Trustee induction and training Most of the incoming Trustees are familiar with the work of the charity.

Potential new Trustees are invited to an induction meeting with the CEO and are given an Information Pack which provides them with basic information about the charity, role of the Trustees and the policies and procedures. The following lists some of the information included:

• Structure of the Charity

• Management Structure

• Main aims of the Charity and the Memorandum and Articles

• Strategic Plan

• Code of Conduct for Trustees

• Future operational plans and objectives and ethical considerations

• Charity Commission contact details and website information

• Resourcing and the current financial position as set out in the latest published accounts

• Corporate Governance Structure

• Guidance in informing declarations of personal and prejudicial interest.

Trustees are invited to all events concerning the different facets of the charity’s primary objectives e.g. the Students Master’s Degree Graduation; Conferences on aspects of Music Services and Consultations on the workings of the Research Department as well as Open Evening presentation for Fundraisers. These events enable the Trustees to meet with the supporters and staff of the Charity and provide an opportunity for them to ask questions and inform themselves about ongoing developments within the organisation. In light of our responsibility to ensure our Trustees have the skills they need for effective governance of the charity, a review is currently being undertaken with a view to launching a new Board Effectiveness Strategy in 2016 that will include the introduction of a new code of governance, a new induction programme and a Trustee Handbook.

The charity purchases Trustee indemnity insurance annually. For 2015, the premium was £1,159 including insurance premium tax at 6%.

Public benefit In drawing together our strategic plan and outlining our aims, objectives and future activities, we have referred to and complied with the duty in section 17(5) of the Charities Act 2011. This relates to having due regard to the Charity Commission’s published general guidance on public benefit. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.




Management The Board of Trustees meets three times during the year and its function is to direct all the affairs and business of the charity. The Board of Trustees delegates the administration of and any of its powers to committees consisting of two or more of the Trustees. Additionally the Board of Trustees may delegate the day-to-day administration of the Charity to the CEO who chairs a Leadership Team. The CEO is appointed by the Board of Trustees and is responsible for providing leadership, strategic direction, management and financial control.

Members of the board of trustees Members of the Board of Trustees, who are directors for the purpose of company law and trustees for the purpose of charity law, who serve during the year up to the date of this report, are set out on page 3.

Our colleaguesWe undertook a comprehensive restructure of the organisation in 2015 to refocus our resources towards our life-changing music therapy provision and to provide more opportunities for our biggest asset, our music therapists.

Nordoff Robbins is the largest non-statutory music therapy employer in the UK and we are lucky to have so many talented and dedicated colleagues working for us. At the time of publication, the Nordoff Robbins team comprised 84 (2014: 96) part-time and full-time therapists, tutors, researchers, administrative, fundraising and management staff (59 full-time equivalent. 2014: 56).

We must also mention the many individuals who support us on a voluntary basis as trustees and committee members. Your support is invaluable to us and always appreciated.

We are fully committed to supporting and consulting with all colleagues. All strategic issues are communicated via our Staff Consultative Forum and more widely via a staff intranet. We bring all staff together for regular face-to-face meetings and actively encourage all colleagues to share their views.

The charity is fully committed to promoting and implementing diversity and equal opportunities for all staff and we have a range of policies to support this. We also value professional and personal development and support staff to reach their goals through supervision and training.

We would like to take this opportunity to say thank you to all Nordoff Robbins colleagues. It is your energy and expertise that makes us who we are.

Statement as to disclosure of information to the auditor The trustees in office on the date of this report have confirmed, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. Each of the trustees have confirmed that they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

Auditor A resolution to re-appoint Crowe Clark Whitehill LLP as auditor will be put to the members of the Board of Trustees at the end of the Annual General Meeting.

Crowe Clark Whitehill LLP has indicated its willingness to continue in office.

By order of the Board:

Trustee Date: 30th March 2016

Mr M D Miller


Trustees’ responsibilities in the preparation of financial statementsTrustees (who are also directors of Nordoff-Robbins Music Therapy for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

• Select suitable accounting policies and then apply them consistently

• Observe the methods and principles in the Charities SORP

• Make judgments and estimates that are reasonable and prudent

• State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, 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 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Financial Statements

The Trustees are responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.


The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

We have audited the financial statements of Nordoff Robbins Music Therapy for the year ended 31 December 2015 which comprise the Consolidated Statement of Financial Activities, the Group and Company Balance Sheets, the Consolidated Cash Flow Statement and the related notes numbered 1 to 17.

Independent Auditor’s Report to the members of Nordoff Robbins Music TherapyFor the year ended 31 December 2015


Respective responsibilities of trustees and auditorAs explained more fully in the Statement of Trustees’ Responsibilities, the trustees (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements.

In addition, we read all the financial and non-financial information in the Strategic report and the Trustees’ Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statementsIn our opinion the financial statements:

• Give a true and fair view of the state of the group’s and the charitable company’s affairs as at 31 December 2015 and of the group’s 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

• Have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006In our opinion the information given in the Strategic report and the Trustees Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exceptionWe 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:

• The parent charitable company has not kept adequate accounting records; or

• The parent charitable company financial statements are not in agreement with the accounting records and returns; or

• Certain disclosures of trustees’ remuneration specified by law are not made; or

• We have not received all the information and explanations we require for our audit.

Senior Statutory AuditorFor and on behalf of Crowe Clark Whitehill LLP Statutory Auditor ReadingDate: 7th April 2016

Alastair Lyon

Independent Auditor’s Report to the members of Nordoff Robbins Music TherapyFor the year ended 31 December 2015


Unrestricted Restricted

NotesGeneral funds 2015 £

Designated funds 2015 £

Restricted funds 2015 £

Total funds 2015 £

Total funds 2014 £

Income and endowments from:

Donations and Legacies 1,524,346 – 101,336 1,625,682 1,411,571

Charitable Activities 3 683,108 – – 683,108 575,070

Other Trading Activities 2,376,763 – – 2,376,763 2,307,331

Joint Venture Income 900,840 – – 900,840 551,385

Joint Venture Income attributable to Partners (522,690) – – (522,690) (323,591)

Investments 233,646 – – 233,646 219,437

Other 8,966 – – 8,966 11,872

Total 5,204,979 – 101,336 5,306,315 4,753,075

Expenditure on:

Raising Funds 1,660,804 52,096 – 1,712,900 1,413,052

Charitable Activities 2,476,061 280,878 101,336 2,858,275 3,014,500

Joint Venture Costs 322,596 – – 322,596 285,873

Joint Venture Costs attributable to Partners (187,179) – – (187,179) (167,770)

Other 34,750 – – 34,750 34,406

Total 4 4,307,032 332,974 101,336 4,741,342 4,580,061

Operating surplus 14 897,947 (332,974) – 564,973 173,014

Net gains on Investments 6 13,097 – – 13,097 112,830

Net income 911,044 (332,974) – 578,070 285,844

Transfers Between Funds (24,597) 24,597 – – –

Net movement in funds 886,447 (308,377) – 578,070 285,844

Reconciliation of funds:

Total funds brought forward 4,990,994 5,789,179 – 10,780,173 10,494,329

Total funds carried forward 14 5,877,441 5,480,802 – 11,358,243 10,780,173

Consolidated Statement of Financial Activities (including an Income and Expenditure Account)For the year ended 31 December 2015

All of the above results are derived from continuing activities. The statement of financial activities includes all gains and losses recognised in the year. Refer to note 15 for a full comparative statement of financial activities.


Group Charity

Notes 2015 £ 2014 £ 2015 £ 2014 £

Fixed assets

Tangible fixed assets 9 2,428,683 2,539,179 2,428,683 2,539,179

Listed investments 10a 6,976,045 6,989,722 6,976,045 6,989,722

Investments in subsidiaries and joint ventures 10b 1 1 101 201

9,404,729 9,528,902 9,404,829 9,529,102

Current assets

Debtors 11 850,547 862,046 993,503 909,777

Cash on deposit 109,634 109,197 109,634 109,197

Cash at bank and in hand 1,408,620 619,833 1,183,412 472,942

2,368,801 1,591,076 2,286,549 1,491,916

Creditors: amounts falling due within one year 12 (415,287) (339,805) (333,135) (240,745)

Net current assets 1,953,514 1,251,271 1,953,414 1,251,171

Net assets 14 11,358,243 10,780,173 11,358,243 10,780,273

Unrestricted funds

Designated Funds

Fixed Asset Fund 14 2,428,683 2,539,179 2,428,683 2,539,179

Listed investments 14 250,000 250,000 250,000 250,000

Listed investments 14 2,802,119 3,000,000 2,802,119 3,000,000

Investments in subsidiaries and joint ventures 14 5,877,441 4,990,994 5,877,441 4,991,094

Total funds 11,358,243 10,780,173 11,358,243 10,780,273

Group and Company Balance SheetAs at 31 December 2015

These financial statements were approved and authorised for issue by the Trustees on and signed on its behalf by:

Mr M D Miller

TrusteeDate: 30th March 2016


Notes 2015 £ 2015 £ 2014 £ 2014 £

Cash flows from operating activities

- Net cash provided by operating activities (a) 528,804 (165,122)

Cash flows from investing activities

- Dividends, interest and rents from investments 233,646 219,437

- Purchase of property, plant & equipment – (15,438)

- Proceeds from sale of investments 1,149,965 2,044,808

- Purchase of investments (1,259,493) (1,916,158)

- Movement in cash awaiting re-investment 136,302 (94,204)

Net cash provided by investing activities 260,420 238,445

Change in cash and cash equivalents in the reporting period 789,224 73,323

Cash and cash equivalents at the beginning of the reporting period (b) 729,030 655,707

Cash and cash equivalents at the end of the reporting period (b) 1,518,254 729,030

(a) Reconciliation of net income to net cash flow from operating activities:

Net income for the reporting period (as per the statement of financial activities) 578,070 285,844

Depreciation charges 110,496 111,140

Gains on investments (13,097) (112,830)

Dividends, interest and rents from investments (233,646) (219,437)

Decrease/(Increase) in debtors 11,499 (263,526)

Increase in creditors 75,482 33,687

Net cash provided by operating activities 528,804 (165,122)

Consolidated Cashflow StatementFor the year ended 31 December 2015


Notes 2015 £ 2015 £ 2014 £ 2014 £

(b) Analysis of cash and cash equivalents

Cash in hand 1,408,620 619,833

Notice deposits (less than 3 months) 109,634 109,197

Total cash and cash equivalents 1,518,254 729,030

Consolidated Cashflow StatementFor the year ended 31 December 2015


Basis of preparationThe financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2015), applicable UK accounting standards including the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the Companies Act 2006. The principal accounting policies adopted in the preparation of the financial statements are as follows:

Going concernThe Trustees have reviewed the reserves held by the Charity, budgets and forecasts that cover the twelve month period from the date of this report and in their opinion consider that the Charity has the resources needed in order to continue to operate as a viable going concern.

Tangible fixed assets and depreciationTangible fixed assets costing more than £1,500 are capitalised and included at cost including any incidental expenses on acquisition.

Depreciation is provided using the following rates and bases to write off the tangible fixed assets over their estimated useful lives. Freehold property includes the land element and is not split between land and buildings because the difference in depreciation charge is not expected to be materially different:

Freehold property 2% straight line

Short leasehold property improvements Over the term of the lease

Centre Equipment Straight line over the estimated useful life ranging from 3 to 10 years

Fixtures and fittings 10% reducing balance

InvestmentsInvestments held as fixed assets are re-valued at mid-market value at the balance sheet date. It is the charity’s policy to keep valuations up to date such that when investments are sold there is no gain or loss arising from the revaluation of investments. As a result the Statement of Financial Activities only includes those unrealised losses or gains arising from the investment portfolio during the year. The investment in the wholly-owned subsidiary undertakings is held at cost less any provision for impairment.

Liquid resourcesLiquid resources include sums held by the investment manager that are awaiting re-investment.

Subsidiary and associated undertakings and joint venturesThe charity has one wholly owned subsidiary undertaking: Silver Clef Productions Limited together with 50% ownership of a further undertaking, Music Industry Trusts Limited which has been classified as a joint venture. These undertakings have been actively trading throughout the year, and are incorporated in England, passing up their profits, either in whole or in part, to the charity by Gift Aid. A former subsidiary, Silver Clef Limited was voluntarily dissolved during the year having previously been left dormant. These accounts consolidate the results of Silver Clef Productions Limited, under the equity method of accounting. The results of Music Industry Trusts Limited are not consolidated as the Charity to date, has not had control.

A separate Statement of Financial Activities, or Income and Expenditure Account, for the charity itself is not presented because the charity has taken advantage of the exemptions conferred by Section 408 of the Companies Act 2006.

Charity Information:The Charity is a company limited by guarantee (registered number 1514616), which is incorporated in the UK.

The address of the registered office is:

2 Lissenden Gardens, London, NW5 1PQ.

Accounting PoliciesFor the year ended 31 December 2015


Incoming resourcesAll incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income, it has met any conditions of receipt and the amount can be quantified with reasonable accuracy.

Fundraising income is accounted for when the commitment is made by the donor. Gifts donated for resale by the charity are recorded by the charity at their value at the time of realisation. No amounts are included in the financial statements for services donated by volunteers.

Resources expendedResources expended are included in the Statement of Financial Activities on the accruals basis, inclusive of any VAT which cannot be recovered.

Grants payable are charged in the year when the offer is conveyed to the recipient.

Support costs are those costs which have not been directly charged to an activity of the charity but nevertheless support those activities. In these accounts, support costs, including governance costs, have been allocated to charitable activities and expenditure on raising funds on a detailed apportionment methodology incorporating staff head count, floor space and organisational spend as cost drivers.

Governance costs are those costs that are deemed to relate to the governance of the charity and include external audit fees, governance-related trustee expenses, direct expenditure on national and international strategy development, and an appropriate proportion of support costs including senior management time.

ReservesRestricted funds are subject to specific restrictions imposed by the donor. Designated funds are set aside by the Trustees for specific purposes, but would otherwise form part of the general funds. General funds are available to spend at the discretion of the Trustees in furtherance of the charitable objectives.


Silver Clef LimitedFollowing a structural and Tax review finalised in 2012, the Trustees approved the recommendation to cease the trading of this subsidiary at the end of 2012. The company entered into members voluntary dissolution during the year and was formally dissolved on 4 August 2015.

Silver Clef Productions LimitedThe principal activity of the company is to carry out certain fundraising event functions, as well as to receive any funds relating to previous concert production and the selling of audio and visual rights on behalf of the parent charity. The annual Rugby Fundraising Dinner previously undertaken by the charity is now carried out through this trading subsidiary.

Music Industry Trusts LimitedThis undertaking’s trade is principally the promotion of the British Music Industry Trust Awards. The Music Industry Trusts Limited is treated as a joint venture in the Charity accounts because there is joint control by Nordoff-Robbins Music Therapy and BRIT Trust. The charity receives part of the profits of this undertaking by Gift Aid. This company distributes all of its profits by way of Gift Aid and at 31 December 2015 has net assets of £2 (2014: £2). Part of the event includes an auction organised by Nordoff Robbins who retain the net proceeds which in 2015 totalled £46,390 (2014: £45,601). Gross auction income is included within donations and legacies in the charity accounts, with associated costs included in expenditure on raising funds. The Music Industry Trusts Limited made an additional donation of £242,733 to Nordoff Robbins (2014: £109,691), represented by net joint venture income attributable to the charity in these accounts. Total funds received by Nordoff Robbins in association with the British Music Industry Awards were £289,123 (2014: £155,292).


Financial instrumentsThe charity holds only financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments include debtors and creditors, and investments in non-puttable ordinary shares. Debtors and creditors are initially recognised at transaction value and subsequently measured at fair value. Note 16 provides more information on financial instruments where future cash flows are anticipated, with financial assets referring to fixed asset investments and debtor balances excluding prepayments, and financial liabilities referring to all creditor balances excluding deferred income.

Pension contributionsThe charity makes pension contributions to staff under money purchase schemes. The amount charged to the Statement of Financial Activities in respect of pension costs and other post retirement benefits is the sum of contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

Operating lease and rental policy Operating lease payments are recorded as expenditure or expenses of the related funds when paid or incurred. Neither an asset nor an obligation is recorded for operating leases. Accordingly, rental payments are recorded as rental expenditure/expense in the overhead.

Significant judgements and estimatesThe trustees consider that there are no material judgements in applying accounting policies or key sources of estimation uncertainty.

FRS102 transitionThis is the first year in which the financial statements have been prepared under FRS 102. The date of transition is 1 January 2014. In preparing the accounts, the Trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 the restatement of comparative items was required. In considering this the Trustees have concluded there are no comparative items requiring restatement.



1 Memorandum of association and taxation status

The company is limited by guarantee and has no issued share capital. Every member, in pursuance of Clause 8 of the Revised Memorandum of Association, undertakes to contribute a sum not exceeding £1 in the event of the company being wound up whilst he or she is a member. The company is a charity for the purposes of Chapter 3 Part 11 of the Corporation Tax Act 2011 or Section 256 of the Taxation of Chargeable Gains Act 1992 and as such is exempt from taxation on its income to the extent that such income or gains are applied exclusively to charitable activities.

2 Net income from trading activities of subsidiaries

Silver Clef Productions Ltd Total 2014 £

Turnover 969,625 728,692

Cost of sales (527,446) (359,808)

Gross profit 442,179 368,884

Interest receivable 199 206

Administration costs (126,957) (107,579)

Net profit 315,421 261,511

Amount gifted to NRMT charity (315,421) (261,611)

Retained profit for the year and carried forward – (100)

The assets and liabilities of the subsidiaries were:

Silver Clef Productions Ltd Total 2014 £

Current assets 532,390 465,120

Current liabilities (532,290) (465,020)

Net assets 100 100

Share capital 100 200

Profit and loss account – (100)

Capital and reserves 100 100

The results of and balance sheet of Silver Clef Productions Limited is extracted from it’s published accounts for the year ended 31 December 2015.

Notes to the Financial StatementsFor the year ended 31 December 2015


3 Income from charitable activities

2015 £ 2014 £

Music services generated income 554,332 441,695

Training and research generated income 128,776 133,375

683,108 575,070

4 Expenditure

Direct costs £Grants Payable £

SupportCosts £ Total 2015 £ Total 2014 £

Expenditure on raising funds 1,662,850 – 50,050 1,712,900 1,413,052

Charitable Activities

Music Services 1,253,693 80,000 799,708 2,133,401 2,205,952

Training and Research 488,050 – 236,824 724,874 808,548

1,741,743 80,000 1,036,532 2,858,275 3,014,500

Joint Venture Net Cost 135,417 – – 135,417 118,103

Other expenditure 34,750 – – 34,750 34,406

Total resources expended 3,574,760 80,000 1,086,582 4,741,342 4,580,061

Grants payable or committed, including related costs, were made during the year totalling £80,000 (2014: £100,000) which represents a total of £80,000 (2014: £100,000) to Nordoff Robbins in Scotland.



5 Support costs

2015 £ 2014 £

IT / AV & Telecommunications 144,056 159,348

Publicity & Communications 167,808 155,573

Premises & Operational Support 210,085 193,644

Human resources & staffing support 229,246 180,285

Depreciation 110,496 111,140

Governance costs 72,879 71,740

Other support costs 152,012 153,869

1,086,582 1,025,599

6 Net outgoing resources

2015 £ 2014 £

Net outgoing resources for the group are stated after charging:

Depreciation 110,496 111,140

Auditors Remuneration – Audit fees

Relating to the parent charity 13,900 13,400

Relating to subsidiaries 3,100 4,100

7 Staff costs

2015 £ 2014 £

Wages and salaries 2,225,252 2,225,900

Social security costs 208,493 207,199

Other pension costs 89,744 74,658

2,523,489 2,507,757

A restructure was undertaken during the year with the aim of re-focussing resources on delivery of music services. Voluntary and statutory redundancy payments of £44,890 resulted from this restructure in addition to the staff costs disclosed above.

The total remuneration of key decision makers at the charity was £359,167. This relates to the leadership team which at the year end comprised 4 Directors and the Chief Executive. Prior to the first phase of the restructure in July, the leadership team had included 5 Directors and the Chief Executive.



The number of employees whose emoluments exceeded £60,000 are stated below:

2015 Number 2014 Number

£60,000 – £70,000 1 2

£70,000 – £80,000 1 1

£80,000 – £90,000 1 0

The total number of employees was 84 at year-end (2014:96) with the Full Time Equivalent (FTE) average number of employees at the year end, including staff directors, was:

2015 Number 2014 Number

Music therapists and other charitable staff 48 48

Fundraisers 11 8

59 56

2015 £ 2014 £

Pension contributions for the highest paid employees 6,802 3,012

Number Number

Retirement benefits were accruing to directors as follows:

Money purchase scheme 2 1

Jean Eisler (ex trustee) received an annual pension payment of £7,944 (2014: £8,030). No other trustee or ex trustee receives any remuneration. No expenses in respect of travel and subsistence incurred on behalf of the charity, were reimbursed to Trustees during the year (2014: £0). An amount of £1,159 (2014: £1,961) was paid by the charity in respect of the Trustees’ Indemnity Insurance premium.

8 Profits of the parent company

As permitted by Section 408 of the Companies Act 2006, the profit and loss account of the parent company is not presented as part of these accounts. The parent company’s net income for the year ended 31 December 2015 amounted to £577,970 (2014: £285,944).



9 Tangible fixed assets

Group and charityFreehold property £

Short leasehold property improvements £

Centre equipment (incl. Tape Library) £

Fixtures and fittings £ Total £

Cost at 1 January 2015 and 31 December 2015 4,076,524 389,280 58,575 89,323 4,613,702

Depreciation

At 1 January 2015 1,797,859 154,344 50,024 72,296 2,074,523

Charge in year 81,531 26,104 1,563 1,298 110,496

At 31 December 2015 1,879,390 180,448 51,587 73,594 2,185,019

Net book valueAt 31 December 2015 2,197,134 208,832 6,988 15,729 2,428,683

At 31 December 2014 2,278,665 234,936 8,551 17,027 2,539,179

The Trustees consider that the market value of fixed assets are not less than their net book values.



10a Listed investments

Group and charity 2015 £ 2014 £

Market value at 1 January 6,989,722 6,911,338

Additions 1,259,493 1,916,158

Sales proceeds (1,149,965) (2,044,808)

Realised and unrealised gains/(losses) on Investment assets 13,097 112,830

Movement in cash (136,302) 94,204

Market value at 31 December 6,976,045 6,989,722

2015 £ 2014 £

Investments comprise the following:

UK investments

Fixed interest 988,399 1,178,179

Equities 4,241,940 4,084,350

5,230,339 5,262,529

Overseas investments

Equities 1,256,722 1,230,709

1,256,722 1,230,709

Property 226,829 100,201

Other assets 179,825 177,650

Cash awaiting re-investment 82,330 218,633

6,976,045 6,989,722

There are no investments representing greater than 5% of the portfolio’s market value.



10b Investments in subsidiaries and joint ventures

In addition to the investments listed above the charity also holds investments in subsidiaries and joint ventures as follows:

Group Joint venture

Cost

At 1 January 2015 1

Disposals –

At 31 December 2015 1

Charity Joint venture Subsidiaries £ Total

Cost

At 1 January 2015 1 200 201

Disposals – (100) (100)

At 31 December 2015 1 100 101

The following were subsidiary undertakings at the year end:

Country of incorporation Holding

Proportion held

Nature of business

Silver Clef Productions LimitedCompany no. 02796952

UK Ordinary share 100%Events production and fundraising

A former 100% owned subsidiary, Silver Clef Limited, was dissolved during the year.The following was a joint venture at the year end:

Country of incorporation Holding

Proportion held

Nature of business

Music Industry Trusts Limited UK Ordinary share 50%Promotion of British Music Industry Awards

The profit of Music Industry Trusts Limited is donated under Gift Aid to its shareholders each year.



11 DebtorsGroup Charity

2015 £ 2014 £ 2015 £ 2014 £

Trade debtors 155,280 160,200 – –

Amounts owed by subsidiary undertakings – – 450,138 365,960

Amounts owed by joint venture 91,297 60,036 91,297 60,036

Other debtors 380,599 433,471 380,599 433,471

Other taxation and social security – 11,832 – –

Prepayments and accrued income 223,371 196,507 71,469 50,310

850,547 862,046 993,503 909,777

No prepayments were due after more than one year (2014: £0).

12 Creditors: Amounts falling due within one year

Group Charity

2015 £ 2014 £ 2015 £ 2014 £

Trade creditors 73,733 150,870 46,936 93,610

Other taxation and social security 60,022 54,145 57,107 54,145

Other creditors 52,320 57,248 22,320 27,248

Accruals and deferred income 229,212 77,542 206,772 65,742

415,287 339,805 333,135 240,745

Within accruals and deferred income is £76,044 (charity) and £95,384 (group) of deferred income (2014: £43,538 charity, £52,338 group).

Within creditors is £13,050 of outstanding pension contributions (2014: £13,283).



13 Operating lease commitments

At 31 December the company was committed to make the following total minimum lease payments under non-cancellable operating leases for each of the future periods stated:

Centre Equipment Land and Buildings

2015 £ 2014 £ 2015 £ 2014 £

Total future minimum lease payments due in:

Not later than one year 22,914 26,680 48,724 62,645

Later than one year, and not later than five years 10,710 32,190 – 48,724

14 Reserves of the group

Movements in fundsAt 1 Jan 2015 £

Incoming Resources £

Outgoing Resources £

Unrealised investment gains £ Transfers £

At 31 Dec 2015

General Fund 4,990,994 5,204,979 (4,307,032) 13,097 (24,597) 5,877,441

Designated Funds

Fixed Asset Fund 2,539,179 – (110,496) – – 2,428,683

Maintenance Fund 250,000 – (24,597) – 24,597 250,000

Strategic Fund 3,000,000 – (197,881) – – 2,802,119

Total designated funds 5,789,179 – (332,974) – 24,597 5,480,802

Total unrestricted funds 10,780,173 5,204,979 (4,640,006) 13,097 – 11,358,243

Restricted fundsMusic Therapy Services – 101,336 (101,336) – – –

Total restricted funds – 101,336 (101,336) – – –

Total funds 10,780,173 5,306,315 (4,741,342) 13,097 – 11,358,243



Analysis of net assets between funds.

Funds at 31 December 2015 are represented by:

General Fund£

Designated Funds£

Restricted Funds£

Total Funds£

Tangible Fixed Assets – 2,428,683 – 2,428,683

Investments 3,923,927 3,052,119 – 6,976,046

Net current assets 1,953,514 – – 1,953,514

5,877,441 5,480,802 – 11,358,243

Designated funds have been set aside by the Trustees as follows:

The Fixed Asset Fund represents the net book value of all tangible fixed assets held. The net effect of all additions, disposals and depreciation are transferred to this fund.

The Maintenance Fund has been designated to cover the costs of planned and unplanned repairs and maintenance to the charity’s buildings. The maintenance fund has been topped up to previous levels for future use.

The Strategic Development Fund has been designated as part of the charity’s long term strategic plan to enable the charity to support both its ongoing activities and its growth programme in the future.

Restricted funds relate to:

Music Therapy Services – the aggregate of fourteen funds relating to the delivery of music therapy services in specific clinical settings.



15 Comparative statement of financial activitiesUnrestricted Restricted

General funds 2014 £

Designated funds 2014 £

Restricted funds 2014 £

Total funds 2014 £

Income and endowments from:

Donations and Legacies 1,301,577 – 109,994 1,411,571

Charitable Activities 575,070 – – 575,070

Other Trading Activities 2,267,331 – 40,000 2,307,331

Joint Venture Income 551,385 – – 551,385

Joint Venture Income attributable to Partners (323,591) – – (323,591)

Investments 219,437 – – 219,437

Other 11,872 – – 11,872

Total 4,603,081 – 149,994 4,753,075

Expenditure on:

Raising Funds 1,385,296 27,756 – 1,413,052

Charitable Activities 2,510,682 353,824 149,994 3,014,500

Joint Venture Costs 285,873 – – 285,873

Joint Venture Costs attributable to Partners (167,770) – – (167,770)

Other 34,406 – – 34,406

Total 4,048,487 381,580 149,994 4,580,061

Operating surplus 554,594 (381,580) – 173,014

Net gains on Investments 112,830 – – 112,830

Net income 667,424 (381,580) – 285,844

Transfers Between Funds (285,878) 285,878 – –

Net movement in funds 381,546 (95,702) – 285,844

Reconciliation of funds:

Total funds brought forward 4,609,448 5,884,881 – 10,494,329

Total funds carried forward 4,990,994 5,789,179 – 10,780,173




16 Financial instruments

Group and charity 2015 £ 2014 £ 2015 £ 2014 £

Financial assets measured at fair value 9,156,618 8,271,239 9,266,368 8,495,091

Financial liabilities measured at fair value 259,882 232,758 199,984 142,498

Income in respect of financial instruments is summarised below. There were no other expenses, gains or losses associated with financial instruments.

Group and charity 2015 £ 2014 £ 2015 £ 2014 £

Total interest income for financial assets held at fair value 1,582 1,060 1,383 854

17 Related parties

Ultimate control of Nordoff-Robbins Music Therapy (NRMT) rests with its Board of Trustees, as detailed in the Trustees’ Annual Report.

The charity’s wholly owned subsidiary, Silver Clef Productions Limited, paid £123,315 to the parent charity in accordance with the terms of a cost-sharing agreement between the two entities covering the purchase of staffing and support costs. Silver Clef Productions Limited gift aided profits of £315,421 to the parent charity during the year. A balance of £450,138 was owing from Silver Clef Productions at 31 December 2015 (2014: £365,959).

Nordoff Robbins has a 50% shareholding in Music Industry Trusts Limited (MITS) which is considered to be a joint venture with the BRIT Trust as there is joint control. During the year, MITS had three directors in common with Nordoff Robbins – Brian McLaughlin (resigned from Nordoff Robbins 5 April 2015), Michael Miller and David Munns. MITS donated £242,733 (2014: £109,691) by gift aid to Nordoff Robbins in 2015. At the year-end Nordoff Robbins was owed £91,297 from the MITS (2014: £60,036).

Davin Munns is a common Trustee of the BRIT Trust. In 2015, NRMT received donations of £384,286 (2014: £300,000) from the BRIT Trust.

Brian McLaughlin (resigned from Nordoff Robbins 5 April 2015) was a common Trustee of Starlight Events Limited, an unrelated party that organises the Football Extravaganza, a third party fundraising event. Income for NRMT from this event amounted to £378,029 net of related costs (2014: £337,020).

Howard Jones is a Trustee of Nordoff Robbins and a partner at Sheridans who were paid £22,380 during the year for legal work relating to international trademarks and intellectual property rights.

A payment of £80,000 (2014: £100,000) was made to Nordoff-Robbins Music Therapy in Scotland to fund music therapy services. There were no amounts outstanding at the year end.

The charity sublets land from the BRIT School for Performing Arts and Technology and have built a small unit on it and benefit from some shared facilities which the BRIT School generously provide. Additionally the Charity buys into some of the BRIT school’s maintenance contracts.

Perry Crosthwaite is a non-executive director of Investec who manage the Nordoff Robbins investment portfolio. Investment management fees of £34,750 (2014: £34,406) were incurred during the year. No amounts were outstanding at the year end (2014: £Nil).

Documents

ANNUAL REPORT - Nordoff Robbins · Trustees’ annual report The Trustees, present their Annual Report together with the audited financial statements of Nordoff-Robbins Music Therapy