LEEDS_INTERNATIONAL_PIANO - Accounts

The trustees of the Leeds International Piano Competition ('the Company') are pleased to present their Annual Report together with Financial Statements for the year ended 31 December 2019 which are prepared to meet the requirements for a directors' report under the Companies Act 2006.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)”.

The objects of the charity are:

• To promote the art of music and in particular piano playing and performance.

• To assist young musicians of sufficiently outstanding merit by the award of prizes as well as arranging engagements and invitations for such young musicians to give public performances.

• To educate and promote public interest in music and in particular piano performance in the City of Leeds, Yorkshire and elsewhere.

Public Benefit

The Trustees are aware of the Charity Commission’s guidance on ‘Public Benefit’ and this is embedded in our programmes, fundraising and everything we do as an organisation. Our mission informs our charitable activities, and states:

‘The Leeds is a world leading international music competition. We are dedicated to discovering exceptional young pianists and supporting them in establishing global careers. Our passion is to inspire the widest audience to embrace and celebrate the piano.’

The Trustees are satisfied that the activity contained within this annual report meets our charitable purpose and obligations.

The successful relaunch of the 2018 Competition marked the completion of a major phase of change in the Competition’s evolution, which oversaw a staffing restructure, repopulation of the Trustee Board as well as a complete revision of the Artistic Programme.

In Summer 2019, following the appointment of a new Chair of the Trustees, the executive team undertook a full Strategic Review of The Leeds in order to create a Five-year Business Plan which aims to build the charity’s financial and organisational resilience, artistic impact and global reputation.

The Trustees approved the Five-Year Business Plan in November 2019.

Artistic programme

2019 saw a major increase in activity, including both concerts and learning and community engagement activities, which have taken impactful and relevant experiences into people’s lives. It is our artistic programme which enables us to maintain and enhance The Leeds reputation as a world leading competition:

Competition 2021

As well as re-securing the commitment of existing artistic partners (Askonas Holt/ Steinway & Sons/ Warner Classics/ Wigmore Hall/ Southbank Centre, Medici.tv), there have been new appointments to the artistic team: the Royal Liverpool Philharmonic will be the official orchestra for 2021; internationally renowned pianist, Imogen Cooper, will be Chair of the Competition Jury; all members of the 2021 juries, selection panels and chamber musicians have been secured.

Artist Development

Eric Lu, winner of the 2018 Competition, continued to grow his artistic reputation through a series of high-profile engagements, including his Proms début in Sept.2019, a Steinway Tour of South Korea and the extension of his recording deal with Warner Classics for a further 3 discs. In December, LIPC presented a series of 3 concerts with the three 2018 prize-winners in collaboration with Wigmore Hall (London). This included radio interviews and broadcasts by Radio 3 and medici.tv, who streamed Xinyuan Wang’s performance as part of his Medici Audience Award. Media attention on Eric Lu has remained strong with appearances on BBC Breakfast TV and numerous reviews and features in specialist piano magazines and national papers. The Prize-winners have received bespoke mentoring from a variety of experts, including LIPC Artistic Director and major Alumni of the Competition, as well as artist agents and PR advisors.

Leeds Piano Festival

The purpose of the annual Piano Festival is to generate activity in between the 3-year competition cycle which perpetuates audience engagement with the Competition and develops Leeds reputation as a cultural centre. In March/ April 2019 we held our second annual piano festival at the Leeds College of Music and LSO St.Lukes, London, featuring 2018 Competition winner Eric Lu and pianists Steven Osborne, Barry Douglas and three exceptional young pianists from our partners Lang Lang International Foundation (U.S.A.). Comedian, Alastair MacGowan, also gave a comedy performance at Besbrode Pianos showroom in Holbeck, aimed at inspiring adult learners of the piano.

The Festival hosted a residency in Leeds/ London for the Lang Lang Foundation pianists through which, in addition to giving recitals, they visited hospices, care homes and schools, took part in a public masterclass with Steven Osborne and performed in the schools Piano Fantasia, engaging with a total of 1,250 participants. The festival concerts attracted an audience of 1,125 and were publicised on BBC Radio 3 and gained a four-star review in the Telegraph.

Leeds Piano Trail

The Piano Trail is a visible, permanent and accessible legacy of the Competition which continues to attract residents and visitors to the city centre. Individuals and groups meet in Leeds, specifically to play the public pianos on the trail, and we are daily tagged on social media by people playing on one of our pianos. LIPCs partnership with Leeds BID has ensured the instruments are maintained in key public venues including a new piano at the relaunched Leeds Playhouse, and animated throughout the year with performances and free piano lessons.

Stories from M&S Sheet Music

In partnership with the Marks & Spencer Company Archive and with support from the Heritage Lottery, LIPC curated a project for Leeds residents living with dementia. The project comprised a series of musical and historic workshops at the Archive, in which visitors were supported by artists, archivists and carers to explore and create responses to the archive collection. This resulted in an exhibition, public recital and a set of published resources, and was supported by Leeds City Council Complex Needs Service. The exhibition reached over 100 visitors and remains open for free to the public until December 2020.

Schools Learning Programme

LIPC’s schools programme offers children the possibility to experiment with the piano and get to know the Competition for the first time:

Skylar’s Missing Note

In collaboration with Manic Chord Theatre and Leeds Music Education Partnership, a new production toured in Leeds schools in autumn 2019. This project was designed with teachers and educational specialists from the Leeds music hub to deliver clear curriculum outcomes for primary Key Stage 1, using blended immersive storytelling with live piano performance. The project was showcased at a national music hub conference, to illustrate best practice in collaborative partnership working.

Piano Fantasia

Held at Leeds Town Hall, the 2019 edition was an introduction to the piano, its music and the science of sound for primary Key Stage 2 students. The performance mixes music, storytelling and audience participation into a fun and educational experience led by pianist Will Pickvance and the Young Scholars of the Lang Lang International Music Foundation.

Other Activity

The Competition and city was represented by our Artistic Director and Chief Executive at the World Federation of International Music Competitions in Sweden in May 2019. With 122 music competitions from 40 countries, this important congress is both a networking opportunity and a place to share learning with sector colleagues. In the Federation, LIPC is universally regarded as a leader for innovation, particularly in the areas of community engagement and artist development.

The Artistc Director and CEO also visited New York in December, meeting with local partners (host venues for 2021/Steinway and Sons/ medici.tv/ Lang Lang Foundation and making contact with Juilliard School of Music NY & Tianjin/ Carnegie Hall/ Kaufmann Center) as well as potential donors.

Fundraising

Fundraising remained challenging in 2019. However the trustees are pleased to report that sufficient funds were raised to generate a surplus of £208,361 in excess of our expenditure in the year. As such our Fund balances were £385,243 as at 31 December 2019.

Our Five-Year Business Plan, approved in 2019, aims to develop resilience in our short and long-term financial position and significantly increase the Charity’s reserves as well as funding all operating costs. This includes building a Campaign Board to develop high level fundraising, the recruitment of staff/ Trustees with financial and fundraising skills, and embedding best in class fundraising practices which are integrated throughout the organisation.

A programme of fundraising mentorship and training for senior staff by Arts Management International/ DEVOS was completed in 2019.

Steps were taken to wind-down the Friends of LIPC (itself a standalone charity) in order to formally merge this with LIPC. This will allow us to streamline and focus our interactions with Friends, members and supporters and provide a clear structure for those treasured members of the wider Leeds “family” to provide their essential personal support, both financial and practical. This restructure will be finalised in 2020.

The results for the year are set out in the financial statements on page 11 onwards.

Major Donors:

Emerald Foundation

Helen & John Burgess Trust

University of Leeds (Partnership)

Helen Rachael Mackaness Charitable Trust

Sir George Martin Trust

Royal Philharmonic Society

Wades Charity

Leeds City Council

Friends of LIPC

Patrons of LIPC

Following the major expenditure and event focussed activity of the 2018 Competition year, 2019 presented a significant financial challenge.

However, the Trustees are delighted to report that following finalisation of our Five Year Business Plan we have been fortunate to receive significant long term support commitments from one major private donor and one major institutional partner, which together underpins a significant part of the funding requirements of our entire Five Year Plan.

This base of funding support now offers LIPC the chance to seek similar long-term support from other sources, in the knowledge that for the next 5 years, our base costs and overheads are secured. The Trustees gratefully acknowledge the tremendous friendship, trust and support of our vision that these donors/partners have placed in The Leeds and we look forward to welcoming further major funding partners in the coming years.

Reserves Policy

Overall the unrestricted funds of the company are £342,731 (2018: £176,882). The trustees are satisfied with the level of free reserves allowing the company to operate in between the triennial competitions.

The trustees intend to widen the donor base to include national and local public funding and support from the corporate sector. Financial support from these sources are pledged for 2020.

Investment Powers and Investment Policy

Under the Memorandum and Articles of Association, the Company has the power to deposit or invest funds in any manner (but to invest only after obtaining advice from an authorised or exempted person within the meaning of the Financial Services Act 1986 and having regard to the suitability of the investments and the need for diversification).

The Company does not hold any investment funds other than cash deposits. Cash balances are held within interest earning deposit accounts. All cash balances are on immediate notice to ensure operating requirements can be met.

Risk Management

During the course of the year the Company has continued to identify and assess major and emerging risks through our risk policy and procedures. An extensive risk management report forms part of the governance framework documentation and will be reviewed in 2020 as part of our comprehensive annual schedule of reporting and reviews.

Future Developments

Plans for the 2020 artistic programme included a celebration of Dame Fanny Waterman’s 100th birthday in March 2020, featuring alumni and guests from around the world and the preparations for applications opening in June 2020 for the 2021 Competition. In March 2020, The Leeds’ Schools engagement programme was to tour in Bradford and Leeds primary schools to deliver two projects – Skylar’s Missing Note, in partnership with local music education hubs, and The Piano Fantasia with pianist Will Pickvance and pianists from the Lang Lang International Music Foundation. In October 2020, we aimed to launch the first ‘Leeds International Piano Series’ in association with Leeds Town Hall, showcasing emerging talent alongside major artists.

Unfortunately all of this planned activity has been significantly curtailed by the Covid-19 Pandemic. (see below).

Covid-19 Impact

2020 is the middle of our triennial cycle and a critical time to secure funds that will enable the next competition to take place in 2021. Covid-19 has affected many of our fundraising and artistic activities, meaning that there is a funding gap where we have not been able to generate ticket income or cultivate donors.

Our artistic programme was cancelled in March 2020, including a major celebration of Dame Fanny Waterman’s 100th Birthday, our annual schools programme and dozens of concerts by our Alumni across the world. However, we are fortunate to have the support of major funding partners whose donations have enabled us to maintain our modest staff resources and cover our overheads. This has ensured we remain viable and financially resilient. We have not had to take advantage of any furlough schemes, loans or propose any redundancies. In fact, we have been able to employ a number of hard-hit freelancers and artists under fixed-term contracts.

We plan to deliver a partial reopening in the first quarter of 2021 which is compliant with the Government’s performing arts Covid-19 guidance in order to adapt and deliver the mission-critical areas of our ambitious business plan and international programme, whilst reducing costs and minimising financial risk. This maintains and prioritises our community engagement and impact with schools and audiences in Leeds; employment and development opportunities for young people; and working with freelance artists whose livelihoods are at risk. It is our working assumption that this will enable us to prepare the ground for a full opening of the Competition and community programme between April-Sept 2021, which will benefit and directly employ over 228 individual artists, 14 interns and create over 80 meaningful roles for volunteers.

We have developed a safety protocol for Covid-19 for our staff and offices, following guidance issued by the University of Leeds, where our building is based. We have changed our International First Round to remove as much unnecessary travel as possible for competitors, jury and staff. All performances will be undertaken with strict cleanliness and social distancing rules in place. As for audiences, our public venues are already piloting safe public events and will have all the correct procedures in place for our competition in September 2021. We will continue to observe and adapt to the latest guidelines that apply to our different activities.

Cost savings have been identified in 2020 and further savings will be made ahead of the Competition. We have negotiated that restricted funds can be carried over until such time when our work can be safely delivered. We have generated c.£13k from ticket sales converted to donations following the cancellation of Dame Fanny Waterman's 100th Birthday event in March. We have also revised our fundraising plan to scale back forecast public and corporate funding and increase targets for individual donors and trusts & foundations.

We have not been able to access any Covid-19 related central or local government, public agency or lottery support. We did not apply for Arts Council England Emergency Funding, due to our ability to meet our short-term financial needs from unrestricted reserves. We were not eligible for the Culture Recovery Fund (distributed by the ACE) as our levels of unrestricted income did not show that we would be at risk of ceasing trading by 31st March 2021.

The Executive team conducted a full annual review of our Five-Year Business Plan in October 2020 and Trustees will oversee and approve the changes made in November 2020.

Policy Review and Development

A policy review has set a timetable for the development of existing and new areas of organisational policy. This includes a full review and update of the Staff Handbook completed in Sept.2020. It also includes the development of a new Equality, Diversity & Inclusion Plan and Environmental Sustainability Plan, which greatly extends the charity’s commitments to meaningful change in these areas. In the programming and planning of the current activity cycle, these plans have been embedded in areas such as recruitment, procurement and planning, and staff roles have been revised to ensure these policies are impactful across our structures. The Trustees will review and adopt the final plans in Nov.2020.

Governing Document

The Leeds International Pianoforte Competition is a company limited by guarantee and is registered as a charity under the Charities Act 2011. It is governed by its Memorandum and Articles of Association dated 26 February 1998 together with subsequent amendments. The Company has charitable status for tax purposes. There is a board of directors (‘the Board’), who are charitable trustees(‘the trustees’) and in accordance with the Memorandum of Association the trustees are also the members of the Company.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Appointment of Trustees

In accordance with the Articles of Association, the number of trustees shall be at least five.

In July 2019, Sir Vernon Ellis stepped down as Chair of Trustees, for health reasons. The Trustees and all involved with the competition thank him profoundly for his great dedication, leadership and passion over his years in office.

Ken Beaty was appointed Chair of the Board of Trustees in July 2019. Ken is based in Yorkshire and has a background in business and investment as well as being a keen pianist and choral singer. Ken led the Strategic Review and Business Planning process and also commenced a review of leadership and governance processes in October 2019. This involved establishing clear, revised terms of reference for our Trustee Board and Sub-Committees, as well as a review of the Board’s profile/composition in order to optimise Trustees’ capacity to support the delivery of the Business Plan.

Organisation and Governance

The Board is responsible for decisions covering the significant areas of the Company’s affairs, including overall strategic planning, appointment of trustees and staff, governance, approval of budgets and the development of key policies including general financial and risk management policies. In order to carry out these duties as effectively as possible the Board is assisted by two sub committees:

The Finance & Audit Committee (“FAC”) is responsible for:

1. Adequacy and effectiveness of internal financial controls and risk management

2. Monitoring quality and timeliness of financial reporting

3. Ensuring compliance with Charities Commission, Companies House and other external stakeholder compliance requirements

4. Reviewing (with auditors) findings of the annual audit, including the Annual Report, AND recommendation of final Annual Report to trustee board for submission to AGM

5. Advising the Board on the appointment of the external auditor

6. Review of Annual budget and recommendation to trustee Board for approval

7. Treasury management including any endowment fund

The Remuneration, Appointments & Nominations Committee (“RAN”) is responsible for:

1. All matters pertaining to employment and remuneration of staff

2. Recruitment of executive staff

3. Composition and effectiveness of trustee Board

4. Recommendations to the Board on dismissal and appointment of, and succession planning for, the CEO and Artistic Director

As part of an organisational review in Autumn 2019, we have developed an organisational strategy to grow staff skills and capacity to ensure the long-term delivery of our Strategic Priorities. This includes extending the core executive team by creating two new permanent full-time roles in Fundraising and Marketing & Communications. Alongside this, four intern roles and a number of short-term placements and contracts will be implemented and a substantial internship and volunteering programme with University of Leeds commenced in Oct.2020.

Trustee Induction and Training

New trustees undergo a programme of introduction, which provides a thorough insight into the activities of the Company. At the time of appointment each trustee receives an Induction Pack which includes a copy of the Memorandum and Articles of Association , the notes of recent board meetings and the dates of future meetings, the terms of reference of the sub-committees, the most recent financial statements and budgets, and other appropriate details of forthcoming events and activities.

Trading Company

In 1992, the Charity formed a limited company to handle its business activities, which include sponsorship income and undertaking fundraising events. The company, Leeds International Piano Competition (Enterprises) Ltd,

Leeds International Pianoforte Competition (Enterprises) Ltd was dissolved on 19 August 20019

Connected Charity

The Friends of the Leeds International Pianoforte Competition is a registered charity formed for the furtherance of the charitable objectives of the Competition. The results of this connected charity are not included in these financial statements, but are available from the Hon. Treasurer, who can be contacted via the Company’s business address 169b, Woodhouse Lane, Leeds LS2 9JT. In August 2020, the membership of the Friends of LIPC unanimously voted for the dissolution and merger of the charity into The Leeds International Pianoforte Competition charity. Finalisation of the closure of the Friends charity will be complete by the end of 2020.

The trustees, who are also the directors of Leeds International Pianoforte Competition (Limited by Guarantee) for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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 judgements 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; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In accordance with the company's articles, a resolution proposing the auditor of the company will be put to the Annual General Meeting.

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

Opinion

We have audited the financial statements of Leeds International Pianoforte Competition (Limited by Guarantee) (the ‘charity’) for the year ended 31 December 2019 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31 December 2019 and of its incoming resources and application of resources, for the year then ended;

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

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

the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

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

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

We have nothing to report in this regard.

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

the information given in the trustees' Report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the directors’ report included within the trustees' report has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees' report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

we have not received all the information and explanations we require for our audit; or

the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity 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, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

Leeds International Pianoforte Competition (Limited by Guarantee) is a private company limited by guarantee incorporated in England and Wales. The registered office address is Piano Competition Office, The University of Leeds, Leeds, LS2 9JT. Members have undertaken to contribute such amounts not exceeding £1 as may be required in the event of the company being wound up while they are members or within one year after they cease to be members.

The accounts have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention, modified for certain financial investments at fair value. The principal accounting policies adopted are set out below.

The financial statements have been prepared on the going concern basis. The Board has a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. This includes taking into account the potential impact of COVID-19 to ensure that cashflow is positively managed and the impact to the charity’s operations are mitigated. The Board has concluded that the going concern assumption is appropriate in preparing these financial statements.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

The income represents the amount excluding value added tax, derived during the year. Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Legacies are accounted for as incoming resources once the receipt of the legacy becomes reasonably certain and quantifiable. For pecuniary legacies this will generally be on the granting of probate. For residuary legacies this will generally be on the earlier of cash receipt or once confirmation has been received from the representatives of the estate that payment of the legacy will be made or property transferred and once all conditions attached to the legacy have been fulfilled.

Operating income is credited to the statement of financial activities on a receivable basis, before deducting any related expenditure.

Incoming resources from charitable activities include fees received in prior years for entry into the forthcoming pianoforte competition.

Investment income comprises interest received on cash balances and fixed interest shares. Investment income arising on shares held in restricted funds is treated as unrestricted resources as agreed by the Trustees.

Expenditure is accounted for on an accruals basis and is recognised when a liability is incurred.

Costs of generating funds are those cost incurred in attracting voluntary income.

Charitable activities include expenditure associated with the staging of the competition.

Governance costs include those cost incurred in defining the strategic direction of the charity in particular constitutional and statutory requirements.

Support costs have been allocated to charitable activities (90%) and costs of raising funds (10%), on a basis consistent with the use of resources.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

LIPC, as a registered charity, is exempt from taxation on its income and gains falling within Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable objectives. No tax charge has arisen in the year.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Box office

Marketing income

Publications and public relations

Artistic fees

Reception and hospitality

Jury travel fees, meals and accommodation

Competitors entry brochure, meals, accommodation and transport

Prizes, medals and certificates

Hall and services

Piano tuning and repairs

Streaming expenses

Learning and engagement

Rent and insurance

General office costs

Website development

Travel and subsistence

Support costs have been allocated to charitable activities 90% (2018: 90%) and costs of raising funds 10% (2018: 10%), on a basis consistent with the use of those resources.

Governance costs includes payments to the auditors of £2,300 (2018: £2,300) for audit fees.

The average monthly number of employees during the year was:

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

Edward Boyle Memorial Trust

In September 1995, the Edward Boyle Memorial Trust provided a capital sum of £50,000 to be used to provide the Edward Boyle Prizes for competitors. This is a restricted fund and £50,000 was expended last year for the 2018 Edward Boyle Prizes for competitors.

Foyle Foundation

In September 2017, the Foyle Foundation provided a capital sum of £50,000 to be used towards the live streaming of the Leeds International Piano Competition 2018. This is a restricted fund and £50,000 was expended last year towards the live streaming costs of the 2018 competition.

Learning and Engagement

Restricted income received in 2019 was received in relation to educational projects.

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The remuneration of key management personnel is as follows.

During the year the charity entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

No guarantees have been given or received.

Included in the balance above are amounts due from Leeds International Pianoforte Competition (Enterprises) Ltd totalling £nil (2018 - £17,644 ). The company was dissolved 20 August 2019 and the balance due to the charity was repaid in full.

During the year the charity received funding of £65,000 (2019: £185,000) from the University of Leeds. Sir Alan Langlands is Vice Chancellor of the University of Leeds and Mr E Anderson is a member of Council and Chair of the Audit & Risk Committee of the University. Both are trustees of the charity. The transactions were conducted at arm's length.