Company registered number.. 02989656 Charity number: 1045693 THE MIDI MUSIC COMPANY (A company limited by guarantee and registered charity) UNAUDITED DIRECTORS, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} CONTENTS Page Rafèronc8 and administrative datails of tho Charity. its Oirnctors and advisafs Directors. report Independent examiner's rnport Statsment of financial activitios 10 Balanc• sh¢¢t 12 Notes to the financlal statements 13-28 The following pages do not form part of the statutory finantyal ststements.. Dgtailed in¢omo and gxwnditure a¢count THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} REFERENCE AND ADMINISTRATNE DETAILS OF THE CHARITY, ITS DIRECTORS AND ADVISERS FOR THE YEAR ENDED 31 klARCH 2023 Dlrnctors Gordon Williams. Chair Gerainl Howells. Treasurer Isabel Newman Robert Fitzpatrick Indy Vidyalankara Merwgn Lyn lappointed 13 March 20231 Claire Shomade (appointed 13 March 20231 Company rggS$tor•d number 02989656 Charlty roglstsred number 1045693 Rogl$tor•d office 77 Watson's Street Deptford London SE8 4AU Ex•¢utlv• dlr•ctor Wozzy 8rewster. OBE. FRSA Independent examlngr MHA Chartered Accountants 910 The Cre5￿￿t Colchesler Business Park Colchesler Essex C04 9YQ Bankors Barclays Bank PIC 93 Lew5ham High Street Lewsham SE1388B CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Charity Bank Ltd Fosse House 182 High Street Tonbndge TN9 1BE Page 1 THE MIDI MUSIC COMPANY (Company limited by guarantee no 2989656, rngistered charity Tro. 10456931 DIRECTORS, REPORT For tha year endod 31 March 2023 The Directors present their annual report together wlh the financial statements of the Charity for the year 1 April 2022 10 31 March 2023. The Directors conffirm that the Annual Report and financial slalemenls of the charitable company Comply wrth the Current sl*utory requirements. the ￿qUIrementS of the charitable company's governing document and the provisions of the Statement of Recommended Practice ISORPI applicable to charits'es preparing their accounts in accordance wrth the Financial Reporting Stsndard applicable in the UK and Republic ol Ireland. uctura Gov8rnanc• and Mana Govemin Document The Midi Music Company is a company limrted by guarantee govemed by its Memorandum and Articles of Association dated 26th July 1994 and amended 12th December 2012. It is registered as a charity with the Charity Commission and the Fundraising Regulator. olntment of Board of Olrectorn As set out In the Article5 01 Association the Board of Directors has the power al any b'me, and from time lo lime, lo appoint any person lo be a Diredof. erther to fill a casual vacancy or as an addition to the existing Oirectors. Any Director so appointed shall hold office only until the next following Annual General Meeting and shall then be eligible for re•election. The Board of Directors operates on a voluntary basis. Dlr¢¢tors Inductlon & Tralnln New Directors have an induction meeting with the Chair and Exe¢ulive Dire¢lor to brief them on the bu$ines$ plan, artistic programme, and financial perforniance of the charity. as well as an opportunity to observe a 8oard meeting. Ouring the induciion they meet key staff members and can observe various aspects ol the charity's work. Ouring the observats.on Board meekn.ng new Directors can raise any queries or iysues with the rest of the Board of Directors. New Directors are also invited to an induction meeting %there they can discuss any issues wrth the rest of the 8oard of Directors. The Directors are encouraged lo attend appropriate training events that will facilrtale the undertaking of their role and receive relevant Charity commissi￿ infomiation on due diligence and regulatsons. anisation The Board of Directors administers the charrty. The Board meets quarterly and has specific members wth responsibility for personnel, finance. legal, Client development, philanthropy. social investment. PR, marketing. digital streaming insights and the music iniluslry. An Executtve Director is appointed by the Board to manage the day-to-day operations of the charity. To lacilitate effeciive operations, the Execuiive Oirector has delegated authority. within the terms of delegation approved by the Board, for operational matters including finance. personnel. resources, logistics and artistic performance related aclivrties. Rolatgd Partles The charrty's wholly owned subsidiary, The Midi Music Company Events Ltd, was established to deliver creative events for young people. The Midi Music Company is the only shareholder and all profits from the events company are invested in the charty. The Midi Music Company Events Ltd is cur￿n11Y dormant. Rlsk Mana •m•nt The Board of Directors receives quarterfy financial management and operations reports, including information on cashflow, financial support, aTts"sb"c programme, statiskn.cal data, Tesources, logistlC5, ne￿Orks, and developments, as well as holding addrtional meetings. when required, lo discuss financial, personnel & resource issues. Page 2 THE MIDI MUSIC COMPANY (Company limited by guarantee no 2989656, rngistered charity Tro. 10456931 DIRECTORS, REPORT For tha year endod 31 March 2023 The staff team monitor operations and finances weekly on behalf of the 8oard of Directors, reporting areas of concem and highlighting the polents.al risk lo the charty. along wlh recommendation5 for strategic development. fundraising. safeguaiding children and young people. and health & safely. A key element in the management of financial risk is the establishment of a reserves policy and its iegular review by the Board of Directors. Ob octlvos & A¢tlvltl•s The objects of the charity are= To promote, maintain. improve. and advance edU￿tIOn parti¢ularly by the encouragement Of the Arts including all forms of perfonning and visual art wth special reference to the art of Music. The charity provides a space for all chIld￿n and young people lo be inspired to gel into music and the creative industries. working within a safe and inspiring ￿ative hub. The prlmary focus for the yoar was.. to transfer the artistic programme back on511e working within a COVID-$8fe environment. increasing the access to CICAS@ and CAPS members for rehearsal and recording,. the conts'nued investment from the London Borough of Le￿$ham. Arts Council England and the Tom ap Rhys Pryce Memorial Trust. as well as attracling new investment from the Paul Hamlyn Foundation,. and the Charity's involvement in the Black Association lor the Arts UK IBAFA UK). ongoing participation in the UK Music Diversity Tasklorce. BPI Music Export Gr0￿h Scheme. BRIT Award Voting Academy and WOMEX 2022. plus engagement in the AIM * FAC Artists 8 Managers Awards Panel. MMF Managers Accelerator Programme and the MMF Education Committee. wth the UK Music Ten-Point Plan partnerships with the A$so¢ialion of Independent Musi¢ and Featured Artist Coalition creating in¢reased opportunities for our students, clients and members. Support was also provided for various campaigns including, #Freemovecreate. #EveryChildAMusician, #lnvestlnmusicians. #LetTheMusicPlay, #5aveourvenues and #NoMusicOnADeadPlanel. The Strategies employed lo achieve the charity's ¢)bjectives are to.. Provide inspiring and engaging educational and training programmes tsrgeted at children and young people wlh rewarding Incentives. Work In partnership wth relevant agen¢*slorganisalions lo Collate industry intelligence. host seminars and master classes to broaden young people's understsnding of current trends and Opportun￿'eS in the UK music industry and cultural industries, Develop relationships wth music industry businesses to proV￿e access to entry level jobs, support funding inveslment for young people and the creats'on of partnership opportunities, Establish affordable access programmes for children and young people to learn how to play inslrumenls, develop music production skills. remrd Iheiw music. develop creative enterprises, explore creative internships. and work placements. expand their s(xial networks. rehearse, perform and develop themselves as creative entrepreneurs, Participate in relevant seminars, lorums, panels, advisory groups, and conferences, Develop our strategic partnerships and nefv￿rks. The four major areas of activity are.. e(Jucational PTogrammes- creative industries careers advice service,. events, and partnership projects. Page 3 THE MIDI MUSIC COMPANY (Company limited by guarantee no 2989656, rngistered charity Tro. 10456931 DIRECTORS, REPORT For tha year endod 31 March 2023 The educational programmes are primarily focused on providing music & products.on education for children and young aduA5. They aim lo offer opportunrties in instrumental ski115 development, music composition, music production. mixing & mastering. music business. bursaries. and cross-art form initiatives. We engage industry professionals who share their eXpe￿'Se to inspire emerging talent to understand the trends and opportunities. The programmes allow individuals lo enhance their creative skills and idenb'fy progression routes. Participants are referred from schools. colleges. looked after children Se￿ices, asylum and refugee projects, social services, youth offending schemes. pupil referral units. looked after services. youth projects, local housing inf(ialives, mentsl health services, employment inth'alive$ and olher rel*ed agencies. The Creative Industries Careers Advice Service CICAS@ (pronounced 'seekers"I creates a plarform for young adutts to explore their potential and idenlfy pathways for their creative development including 5kills- based training, work experience placements. app￿nb"CeShIPs. inlemships, mentorships, self-empltsymenl and establishing new enterprises. The 1..1 advice. supwrt and guidance sessions were retained online via Zoom, enabling more young people from across the county to access careers support, with continuous demand for one•tOryone sessions, as well as talent development. industry contacts, marketin9 SUPPOrt, funding advice & guidance, references, and referrals, plus access to rehearsal and recording facilities al MMC onsite. The pre-recorded CICA￿ Se$$ion$ tapered out ¢)nce everywhere was fulty opened after the pandemic, and the CICAS@ Podcasts conbnued to Profile emerging talent on Soundcloud, MMC'S website and newsleller. The partnership projects that engage childfen and young people enable participants lo connect with emerging artist$ lO￿lly, regionally. and nationally. These repre$enl Spoken Word, music, songwriting and production projects, international initiatives. seminars, conference panels - the work placements at MMC for students attending formal educational establishments were also reostablished. Public Ben•llt The Trustees have had due regard to the Charty Commission guidance on Public Benefit. Thè Chanty providès public benefft Ihrtsjgh a variety of different approaches.. Providing subyidised affordable inytrumenlal, Spoken Word and music production luilion ftsr yoci¢> economicalty disadvantaged child￿n. complimented by the Tom ap Rhys Pryce Music bursary programme for 1..1 tuition at The Conservatoire in Blackheath wth partner nominats'ons from YUAF and Fairbeats Music, who also support the programme by providing extended bursaries, where possible. and the distribution of the Jack Petchey Foundation Bronze Award5 for Oulslanding A¢hievemenl for AYM students Mentoring & supporting young people and arts professionals Providing free careers advice and discounteil a￿$$ for CICAS@ & CAPS (Creative Associate Professionals CICASQJ alumni) members to rehearsal space, music production equipment, recording facilities. multimedia resources. vocal coaching, talent development, fvnding advice & guidance, references, Industry links. marketing, digitsl media. PR & marketing 5UPPOrt Developing new audiences for young emerging artisls. bands and creative entrepreneurs via our website. social media. newsletter. podcasts. showcases and evenls, in addition lo providing MMC Takeovers across various plafforms or providing pathways lo performance opportunities Circulating creative & ¢uhur31 industries data and intelligence to provide 9￿ater equity for young people from diverse backgrounds through the CICAS@ and CAPS programmes Linking emerging talent to induslry professionals via our established creative & cultural industries networks and contacts Safeguarding children and young people so that they rAn engage in positive, creative leaming experiences, supported by experienced and professional stsff teams and volunteers, who are DBS checked, according to child proteth'on regulations. Page 4 THE MIDI MUSIC COMPANY (Company limited by guarantee no 2989656, rngistered charity Tro. 10456931 DIRECTORS, REPORT For tha year endod 31 March 2023 Achievements & Performance MAIN ACTIVITIES Aspiring Young Muslcians IAYMI OUTCOMES 36 children aged 11 16 participated in Music Produ¢b"on. MCISpoken Word and Keyboards for Songwritsng classes. KEY FACTORS AYM Graduates accepted places al the BRIT School and other music Colleges. plus present on Manic FM and UKBASE FM. Cre8tlv@ 39 students aged 16+ p8￿.¢1pated in the Music Production & Mixing & astering evening courses and one4a DIY Releasin course Courses relumed in-person. CICAS@.' Cr•atlvo Industries Car88rs Advice Servicè (pronounced 'Seekers'l 805 young adulis aged 16+ received 'One-tC￿one, informats'on, advice and guidance, as well as access to resources, marketing support. lunding advice & guidance. industry contacts and arti$bc development. On-going demand with increased users, including other unregistered band members and artists- registered CICAS@ members surveyed12461 with 60% fegislered with industry bodies, up 5%, 8 x CICASQI 31+ members and 71 CICAS@ alumni part of the Creative Associate Professional programme. CICAS@ Podcasts- on our MMC website profiling 12 Young EntrepTeneurslArtists Opportunity for CICAS@ members to feature in an ¢)n-line podcast. CICAS@ Inlemships for 3 young producers Annola commenced her Internship Autumn 2022 working on her single 'Love Story, release and new Mus￿. Ongoing support for Intern, Isaac Baden-Powell wlh his band Monzanlo Sound releasing 'Nuff Blues,, shortlisted Orake YoLanda Awards and supported Wherka. Moffloko graduated from the intemship as a professional session dwmmer and Mus￿l3n/prOdUCer. Mu$lc Exploslon Se$$lons- A series of music business seminars covering Distribution and Streaming- 19 attendees registered These sessions were supported by.. Utopia Music and Horus Music Page 5 THE MIDI MUSIC COMPANY (Company limited by guarantee no 2989656, rngistered charity Tro. 10456931 DIRECTORS, REPORT For tha year endod 31 March 2023 Summor Show¢a$o & mlnl Sharlng$ 2 x AYM Sharings at the end of each term online wrth students and parentslcarerslfriends 1 x Summer Showcase Summer Showcase re-inslaled. Outreach & Partnerships 9 x bursary awards to children arKI young people aged 11 19 10 attend The Conservatoire in Blackheath for one-tI￿ne tuition over the period of one year The Conservatoire continues to provide additional bursaries, ¥Nhere Possible. Tom'5 Trust's investment supports the bursaries. Placements and work experience from educational estsblishments No work experience placemen15 due to vnder-stsffing. Deaf Rave Music Products'on & Access programme for Deaf young people. Continued lo support Deaf producers and sign song artists.. SignKid participated in several filming projects with the BBC & National Lottery. The Inspiration Nefv4ork- strategic partnership with Impact 10, IRIEI dance theat￿ and Lionbeal Continued progression routes for young people into the creative & cultural industries. supported by iefeirals. Creative Associate Professional Group ICAPsl.' MMC graduates, alumni. Industry professionals and a$so¢iated young entrepreneurs working logether to increase their resources as a collective The continued development of Strategic gras5 roots network with the Capacity lo record. release. publish and distribute new music. Steam Dovm Steam Down a¢cessephJshin 8pL¥xI. L•vTihpm CdlurBI Partrvshp, IKIEI d•rK• th•*rn. BIKk In •Nd r•lv4Mt O￿n￿*￿TrI. *Jv4•1wrnnt and rnu eduCat￿n progrwrrn• lor aith and •rtlJts. ￿ t**1 •$ pwtw•fr*• wilh #i L¢*l•h•m, The report d the D¥eGtt¥s has bew prw•d ￿Ing *l¥An* (d the corrwMM' d thg CL411pdii￿O Akt 2rpJ6. 11 wa& a￿￿￿J. aullKxwl frrf by I I r SeWI&-o23 * shJr•J M Is Gor(kn Wllwrrf c￿r. B¢ard ol Dir•ctc THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2023 Ind•p•nd•nt oxamlnor's rsport to tho DIr￿torS of Th• Mldl Mu$l¢ Company {Ih• Charfty'l I report to the charity Trustees on my examinats'on of the accounts of the Charty for the year ended 31 March 2023. Responsibilities and basis of report As the Trustees of Ihe Charity land its diredors for the purposes of company lawl you are responsible for the preparaty'on of the accounts in accordance th the requirements of the Companies Ad 20061.lhe 2006 Acl'l. Having satisfied mysell that the accounts of the Charty are not ￿Qui￿d lo be audited under Part 16 of the 2006 Act and are eligible for independent examinatK>n. I report in respect of my examination of the Charity's accounts carried out under section 145 of the Charities Act 2011 Ilhe 2011 Act'l. In carrying out my examination I have frjllowed the Diredion$ given by Ihe Chanty Commi$$ion under se¢tKsn 14515llbl of the 2011 Act. Independent examlner's 8tatem•nt I have Completed my examination. l Confim that no matters have come to my attention in connection with the examination giving me cause lo believe.. accounting records were not kept in respect of the Charity a$ required by sects'on 386 of the 2006 AGI., or the accounts do not accord wlh those records., or the accounts do not comply with the accounting requirements ol section 396 of the 2006 Act other than any requirement that the accounts give a 'true and lairf view which is not a matter considered as part of an independent examinats'on., or the accounts have not been prepared in accordance with the methods and principle5 of the Statement of Recommended Pra¢tice for a¢¢ountsng and reporting by charities applicable Its charities preparing their accounts in accordance wlh tt)e Finanaal Repoftsng Slandaft1 applicable In the UK and Republic of Ireland IFRS 1021. I have no concerns and have come across no other matters in conneth.on wlh the examination lo which attention should be drawn in this report in c*der to enable a proper understsnding of the accounts to be reached. Signed ga/oA&iIo/ Dated 20 ￿ember 2023 Cara Miller ACCA MHA 910 The Crescent Colchesler Business Park Colchesler Essex C04 9YQ Page 10 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2023 Unrnstrictsd funds 2023 Rostrictsd funds 2023 Total funds 2023 Total funds 2022 Note Income from: Grants, Trusts and donations Course fee5 Event and venue hire Bank interest receivable Other income 194,606 5.159 4.692 772 10,900 205,S06 5,159 4,692 772 216, 795 2,432 2,208 183 9, 795 1.300 1,300 Total Incomo Exp¢ndlture on: Charitable aclivrtie8'. Staff costs 206.S29 10,900 217,429 231.473 131,847 8.625 41.266 6,488 373 S.426 11.209 3,618 7,190 242 200 135,465 15,815 41,508 6,688 373 5,426 11,209 143,895 21,361 42,436 7, 180 1, 190 16,599 11,828 Project costs Office costs Publicity Music equipment maintenance Governance costs Depreciation Total exp•ndlture 205.234 11,250 216,484 244,489 Other re¢ognl$ed galns: Net movement in fund$ Rgconclllatlon of funds: 1.295 13501 945 (13,076) Total funds brought forward 94.862 850 95,712 108, T88 Nel movement in funds 1.295 13501 (13,OT6? Total funds carried forward 96,157 soo 96,657 95, 712 All income and expenditure derives from continuing activibes. The Statement of finanaal activities includes all gains and 105ses recogni5ed In the year. In 2022, of the total income of £231,413, £192,112 was to unreslricled ftjnds and £39,301 was lo restricted funds. In 2022. of the lotsl eXpendrtU￿ of £244,489, £206,038 was from unreslricled funds and £38.451 was from ￿$tri￿ed funds. The notes on pages 13- 28 fomi part of these financial statements. Page 11 AS AT 31 IIARCH YJ23 2022 fl¥•d ••¥•ts T*rYd*A* I￿￿5¢m￿ 10 12.479 Z3,688 CurY•nt ••••¢• 11 Cath at b•)k hwKI 14 9Z2C*) 93,7 t2 111.7eOI 121.676J 14,178 Totsi n•t M•• 95.712 Chirty fvnd• Re61￿1•d fvr Uni•BtsthNJ fund• 13 13 ,157 Total fvndl .667 712 Th• Ch•rty •rlrtknd to under 4T1 d the CryTwieJ Act 2(￿ Th• m•mb8rn have nrA rryulred th• comp•ny 10 ctt•'n •n *•Jl I￿ in aCE0rdan￿ wth sethon 476 af The Dir•L*ors th•'r r•y>iwtslblm lor ccryfv IM ol th• *ilh r•wd to the Grndl ro3inYJ. Th8 fiMn¢l•l Sl*•mwt8 byt1* Dix*or¥ 4W2j23•r￿ IhRir i3ordon ViIIMami Chair 12 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 General inforniation The Midi Music Company is a private charitable ￿MpanY and is registered the Charity Commission (Charity Registered Number 10456931 and Registrar of Companies (Company Registration Number 029896561 in England and Wales. In the event of the Charrty being NbDund up. the liabilrty in respect of the guarantee 15 limrted to £1 per member of the Charity. The address of the registered office is given in the Charity infomiation on page 1 of these financial statements. The nature of the Charity's operations and principal activities are to provide a space for all Children and young people lo be inspired lo gel into music and the creative industries. Accounting policies 2.1 8a*l$ of pr•paratlon of financlal 8tat•monts The financial slalemenls have been prepared in accordance the Charities SORP IFRS 1021- Accounting and Reporting by Charities.. Stalement of Recommended Practice applicable to charities preparing their accounts in accordance v*ith the Financial Reportin9 Standard applicable in the UK and Republic of I￿land IFRS 102) and the Companies Ad 2006. The Midi Music Company meets the definition of a public benefit entity under FRS 102. Assets and liabilits'es are initially re¢ogniseO at histori￿1 wst or transacb'on value unless otherwise slated in the relevant accounts'ng policy. The financial statements are presented in pound sterling, vthich is Ihe prèsentats'onal and functional currency of the Chanty. and are rounded to the nearest pound. The $ignrfi¢ant accounting policies appl￿ in the preparation of these financial slalemenls are sel out below. These policies have been consistently applied to all years presented unless otherwise stated. 2.2 Going concem The Trustees have assessed the use of going concem and have considered possible events or conditions that mighl cast signifi¢ant doubl on the abilrty of the Charity lo continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. The Trustees have concluded that there is a reasonable expectation that the Charity has adequate resource5 to continue in operational existence for the foreseeable futu￿. The Charrty therefore conb.nues lo adopt the going concem basis in preparing these financial ststements. Page 13 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 A¢¢ountlng poll¢l•$ l¢ontlnu•d} 2.3 Income All income is recognised once the Charity has enlrfement to the income. il is probable that the income wll be received and the amount of income receivable be measured ￿lIablY. For donations lo be recognised the Charity wll have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before enlillemenl ¢an be obtained then in¢ome is deferred until those conditsons are fvlty mel or the fvlfilmenl of those condrbons is wlhin the control of the Charity and it is probable that they wll be fulfilled. The Charity receives grants in respect offfijrthering Ils charrtable objecb'ves. Income from government and other grants are recognised al lair value when the Charity has enlillemenl after any performance conditions have been mel, il is probable that the income y￿11 be received and the amount Can be measured reliably. If entiuemenl is not mel then these amounts are deferred. Other income 1$ recognised in the period in which il is receivable and to the extent the goods have been provided or on complets'on of the service. 2.4 EX￿ndItUrn All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all co$t$ related to that ¢ategory. Expenditure 1$ recognised once there is a legal or constructive obligation to transfer economic benefit to a third paty, rt is probable that a transfer of economic benefits wll be required In settlement and the amount of the obligation can be measured reliably. Expenditure Is classthe(J by activty. Expenditure on ¢haritsble a¢tivrtie$ is in¢urred on dire¢lly undertaking the aclivrties vthich further the Charity's objectives, as well as any associated support costs. All expenditure 15 inclusive of irrecoverable VAT. 2.5 Interest re¢elv•ble Interest on funds held on deposit is inclLKled when receivable and the amount can be measured reliably by the Charity,. this is normally upon notificat￿￿ of the interest paid or payable by the in51itulion wth whom the funds are deposrted. 2.6 Taxation The Charity is considered to pass the tests set out in Paragraph I Schedule 6 01 the Finance Act 2010 and therefore il meets the definth.on of a charitable company for UK corporation tax purposes. Accordingly. the Charty is potentially exempt from taxation In respect of income or capital gains received wrthin ¢ategories CoVe￿d by Chaptei 3 Part 11 of the cotporab.on Tax Ad 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992. to the extent that $u¢h income or gains are applied exclusively to charitable purposes. Page 14 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 A¢¢ountlng poll¢l•$ l¢ontlnu•d} 2.7 Tangible fixed assets and depreciation Tangible fixeil assets costing £500 or MO￿ are capilalised and recognised when future economic benefits are probable anfj the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognrtion, under the cost model, tangible rixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bnng a tsngible fixed asset into its intended working condition should be included in the Measu￿Ment of ¢osL A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls be￿een the carrying value of fixed a5set5 and their recoverable amounts are recognised as impaiment$. Impairment losses are recognised in the Statement of Financial Adivilies. Depreciation 1$ charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated usefvl lives, using the straight4ine method. Depreciation is provided on the following bases." Improvements to rented propety Office equipmenl Music equipment - 20 years 4 years 4 years 2.8 Investments Fixed a$$et investments are a fomi of financial in$lrumenl and are initially re¢ognised al their transaction cosl and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in %thich case it is measured at cost less impairment. Investment gains and losse5, vthether reali5ed or unrealised, are combined and presented as 'GainsllL05sesl on investments. in the Stslemenl of financial activities. The investment in the Chariws trading subsidiary 1$ induded on the Balance Sheet al cost. The la$1 valuation was carried out in September 2008. The Directors are satisfied that there has been no significant change in market value since this date. 2.9 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.10 Cash at bank and in hand Cash at bank and in hand includes cash and short-temi highly liquid investments with a short maturity of three months or less from the date of acquisitson or opening of the deposit or similar account. Page 15 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 A¢¢ountlng poll¢l•$ l¢ontlnu•d} 2.11 Liabilities and provisions Liabilities are recognised vthen the￿ is an obligation al the Balance Sheet date as a result of a past event. it is probable that a transfer of economic benefft wll be reqUI￿d in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anb'cipates il will pay to settle the debt or the amount il has received as advanced payments for the goods or services it musl provide. Provisions are measured at the best estimate of Ihe amounts required to Settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the prewtax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost. 2.12 Flnanclal Instruments The Charity onty holds basic financial instwments. The financial a$$el$ and financial liab11￿.es of the Charity are as follows.. Debtors - trade and other debtors (including accrued Income) are basic financial instruments and are debt instruments measured at amortised cost as tjetailed in Note 11. Prepayments are not financial instruments. Cash at bank- is classified as a basic financial instnjment and is measured at face value. Liabilities - trade creditors, accruals and other creditors will be classified as financial instruments and are measured al amortised cost as detailed in Note 12. Taxation and social security a￿ not included in the financial instruments di$do$ure. Deferred inwme 1$ not deemed to be a finan¢ial liability, as the cash settlement has already iaken place and ihere is simply an obligats'on to deliver charitable services rather than cash or another financial instrument. 2.13 P•nsion$ The Charity operates a defined contribution pension ￿heme and the pension charge repre$enls the amounts payable by the Charity to the fiJnd in respect of the year. Page 16 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 A¢¢ountlng poll¢l•$ l¢ontlnu•d} 2.14 Fund accounting General funds are unreslricteil funds which are available for use al the discretion of the Directors in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Designated funds comprise unrestricted fijnds that have been sel aside by the Directors for particular purposes. The aim and use of each designated fund is sel out in the notes lo the financial slatemenls. Restricted funds are funds which are to be used in accordance wth specific restrictions imposed by donors or vthich have been raised by the Chanty for parts'cular purposes. The costs of raising and adminislenng such funds are charged against the specific fund. The aim and use of each reslricled fund Is sel out in the notes lo the financial statements. Investmenl income, gains and losses are allocaled lo the appropriate fund. Incomè Irom donatlon8, grants and tr￿ts Unrgstrl¢t•d R￿trIct nd¥ fund¥ 2023 2023 Total funds 2023 Donations Grants and Trusts In-kind donation5 15,215 179,391 15.215 190,291 10,900 194,606 10,900 205.506 un￿SInC[ed runds 2022 Restricled runds 2022 Total runds 2022 Donations Grants and Trusts In-kind donations 5,320 170,974 1,200 5,320 210,275 1,200 39,301 177,494 39,301 216, 795 Page 17 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Analysis of Grants and Trusts Unrestrict8d R￿triCt9d nds funds 2023 2023 Total funds 2023 Arts Council England grant London Borough of Lewsham gfanl Jack Pelchey grant Tom Ap Rhys Pryce TNst Paul Hamlyn Foundation 119,391 30,000 119.391 30,000 900 10.000 30,000 900 10,000 30,000 179,391 10,900 190.291 There are no unfuthlled con¢Jitions or other contingenaes attached to the govemment grants above and below. UnrestlFCted funds 2022 Restricled funds 2022 Total funds 2022 Arts Council England grant Art5 Council Funding CRF London Borough of Lewsham grant Jack Petchey grant Tom Ap Rhys Pryce Trust Can you CIC il grant 119,391 11,383 38,200 119,391 31,154 38,200 850 10,000 10,680 19, 771 850 10,000 8,680 170,974 39,301 210,275 Proj8Ct costs 2023 2022 Trainee costs Travel and subsistence Documents and material 10.626 3.586 690 16,598 3, 132 1, 194 437 Training 913 15.815 21,361 Page 18 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Office costs 2023 2022 Light, heat and premises Rent Insurance 17.341 143 5.273 3.367 13,557 1,575 252 19,228 (528) 5,215 3,312 13,903 1,028 278 P051age and 51alionary Telephone and inlemel Office equipment mainlenance Bank charges 41.S08 42,436 Govgrnance 2023 2022 Independent Examiner$' remuneration Independent Examiners, remuneration - Other fees Professional fees 4,020 420 986 3,660 900 12,039 5,426 16,599 Page 19 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Staff costs 2023 2022 Wages and salaries Social security cosls Contribution to defined contribLrtion pension schemes 131.924 3.436 105 139,343 3,932 620 135.465 143,895 Included wlhin wages and salanes are £8,040 to freelance lutors12022 £11,815) and t45,143 to self- employed and casual stsff12022 - £46.4681. The average number of persons employe(I by the Charity during the year was as follows.. 2023 No. 2022 No. Direct staff No employee received remuneration amounting to more than £60.000 in either year. The lolal amount of employee benefrts r￿1Ved by Key Management Personnel was £57,088 12022 - £55,679), vthich includes employers nabonal insurance contributions and employers pension contributions. A salary advance of £1,500 was received by a member of Key Management Personnel in 2020 and this is included wthin other debtor5 al the yearend. The Charity considers ils Key Management Personnel comprise the Directors and Executive Director. Dlroctors. remunoration and expfrnges During the year, no DiTectors received any remunerats.on or olhei benefits (2022- £NIL). During the year ended 31 March 2023, no Director expense$ have been incurred (2022- £NIL). Page 20 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Tangible fixed assets Improve- ments to rented Office property equlpmènt Music •qulpmont Total Cost or valuation Al 1 Apnl 2022 Disposals 131.806 60.684 {33.9101 101,615 110,4441 294.105 144.354 At 31 March 2023 131.806 26.774 91,171 249.751 Dgpreclallon Al 1 April 2022 Charge for the year On disposals 125.835 5.971 51.173 679 {33,9101 93,410 4,559 110,4441 270.418 11.209 144,3541 Al 31 March 2023 131.806 17.942 87,525 237.273 Ngt book value Al 31 March 2023 8.832 3,646 12.478 Al 37 Ma￿h 2022 5.971 9,517 8,205 23,687 Page 21 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 10. Fixed asset investments Investmènts in subsidiary ¢ompanl•s Cost or valuation Al 1 Apnl 2022 At 31 March 2023 Not book value At 31 March 2023 Al 31 March 2022 The Mldl Mu8lc Company Evonts L5m5ted The Midi Music Company holds 1 £1 ordinary shares in The Midi Music Company Events Limited (Company Number.. 046549901. ￿preSentIng a 100% holding. The registered office of The Midi Music Company Evenls Limited is 77 Watsons Street. Deptford, London, SE8 4AU. The finaniaal results of the subsidiary were as folloYr6". Income- £NIL Expenditure - £NIL Surplus for the period- £NIL Net assets- £1 In February 2003, the Chanty fomied Midi Music Company Events Limited, which is a wholly owned trading subsidiary fomied for the purpose of organising large scale youth arts events. Consolidated accounts have not been prepared in respect of its subsidiary company because the group qualifies as a small group under section 398 of the Companies Act 2006. It is currently dormant and the capital of The Midi Music Company Events Limited, for the year ended 31 August 2022 is shown above. Page 22 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 11. Debtors 2023 2022 Due wlthln one year Other debtors 1.500 1,500 1.$00 1,500 12. Crèdltorn: Amounts falllng duo vthhln one ye•r 2023 2022 Trade creditors Other tsxalion and social security Other creditors Accruals and deferred income 6.237 1,509 11,095 1,841 80 8,660 4.020 11.766 21,676 2023 2022 Doferred incomo Al 1 April Resources deferred during Ihe year Amounts released from previous periods 5.000 5,000 Is,0001 At 31 Mar¢h 5,000 The balance of deferred income as at 31 March 2022 relates lo grant income received in advance of the next financial year. Page 23 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 13. Statement of funds ststem•nt of fund$ - current year Balance at 31 March 2023 Balance at 1 Aprfl 2022 Transfers Inlout Income Expendlture Unmstricted funds D•sSgnated funds Fixed asset fund 23,687 {11,2091 12.478 G8n8ral fund¥ General Fund 71.175 206,529 {205,2341 11.209 83.679 Total Unr8Strfct8d funds 94.862 206.S29 {205.2341 96.157 R•8trlct•d funds Tom's Trust Jack Petchey Foundation 10.000 {10,0001 {1,2501 850 soo 850 10.900 {11,2501 500 Total ol lund• 95,712 217,429 {216,4841 96.657 Page 24 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 13. Statement of funds Icontinuedl The Fixed asset lund represents the nel book value of unrestricted tangible fixed assets. Each year any additions or disposal movements are transferred bets￿n this fund and Unrestricted funds. Unrestricted funds are general fvnds vthich are available for use at the discretion of the Trustees in furtherance of the general objective5 of the Charity and which have not been designated for other purposes. Of the net transfer in of £11.209. £5.971 relates lo the release of a Capitsl Lottery grant to the General Fund plus £5.238 for the deprecation of equipment in the period. The Tom's Trust fund represents amounts received from Tom ap Rhys Pryce Memorial Trust to fund the Aspiring Young Musicians project. which is for songwTitsng and music production luilion and the Tom ap Rhys Pryce Music Bursary Awards to The Conservatoire, including partner nominations from YUAF and Fairbeat Music. The Jack Pelchey Found*'on grant represents lund$ which are lo be used for the Oul$landing Achievement Awards presented to the AspiriThJ Young Musicians students. The Arts Council Cuhural Recovery Fund represents the funding received lo enable the return to the building. The Can You CIC It fund represents the funds received to cover the costs of ￿OrdInating the VENN21 ollaborats've songwriting project wrth The Warren in Hull. Page 25 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 13. Statement of funds Icontinuedl ststem•nt of fund$ - prlor yoar 8alance at 31 Ma￿h 2022 Balance at l Apnl 2027 Trnnslers in/out Income Expendrtu Unmstricted funds D•sSgnated funds Fixed asset fund 34,315 (10,628) 23,687 G8n8ral fund¥ General Fund 74,473 192, 712 (206,038) 10,628 71,775 Total Unr8Strfct8d funds 108,788 192.112 1206,038 94,862 R•strictod fundi Tom's Trust Jack Petchey Foundation Art5 Council Funding CRF Can You CIC11 10,L)X* 850 (10.000) 850 19, 771 8,680 (19, 771) (8,680) 39,301 {38,4511 850 Total of funds 108. 788 231.413 (244.489) 95. 712 Page 26 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 14. Analysis of net assets between funds Analys1$ of n•t assets bOt%￿n funds- current y•ar Unrestricted Restricted funds funds 2023 2023 Total funds 2023 Tangible fixed assets Fixed asset investments Current assets Creditors due wrthin one year 12,478 12,478 95,444 {11,7661 500 95.944 111,7661 Total 96.157 500 96.657 Analysls of n•t assets ￿tween funds- prlor year Unresttycted funds 2022 Restricled funds 2022 Total funds 2022 Tangible fixed assets Fixed asset inve$lments Current asset5 Crellilors due wrthin one year 23,687 23,687 92,850 (21,6761 650 93, 700 (21,676? Total 94.862 850 95, 712 1S. Pension ¢ommitments The Charity operates a defined conlributK)n pension scheme. The assets of the ￿heme are held separately from those of the group in an independendy administered fund. The pension cost charge represents contributions payable by the Charity to the fvnd and amounted to £105 {2022 £6201. Contributions of £Nil12022- £801 were payable to the fund at the Balance Sheet date. 18. R8latsd party transactions The Executive Director was not remunerated in the current or prior year for her role as a professional artist manager. Al the year-end. IheTe Vfds an outstanding debtor balance of £1,500 wlh the Executive Dire¢tor12022". £1.5001. The￿ a￿ no other relaled party transactions during the year other than the Key Management Personnal remuneratson shovm in Note 7. Page 27 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 17. Section 37 disc105ure The Charity has reco9nised lotal income from the London Borough of Lewisham of £30.000 12022 £38,200) in respect of grant aid for core costs and £Nil12022 £Nill lor specific restricted projects. These nds were fully expended during the year12022 - fiJlly expended}. At 31 March 2023, £Nil 12022 £Nill has been deferred lo the next finanual year. Page 28 THE MIDI MUSIC COMPANY IA c¢)mpany limitod by guarantse and r•gi$tsred Charity} INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023 2023 2023 2022 2022 INCOME Grants 149.391 40.900 4,692 5,1S9 772 16,S1S 188, 745 21,530 2.208 2,432 183 16,315 Trust Income Hire seNices Course fees Interest receivable Donations and other income Total incom• 217,429 231,413 EXPENDITURE Salaries Casual and self-employed staff Premises and office running costs Trainee costs Documents and materials Staff travel, subsistence and trainin9 Publicity Bank charges Music equipment maintenance Depreciation Governance Costs 82,282 53,183 41,256 10,626 690 85,612 58,283 42, 158 16.598 1, 194 3,569 7, 180 278 1, 190 11,828 16,599 4.499 6.688 2S2 373 11.209 5,426 Total oxponditure 216.484 244,489 Net Incomellexpendltur•l for the reportlng perlod 113,076 Page 29