Company registered number.. 02989656 Charity number.. 1045693 THE MIDI MUSIC COMPANY (A company limited by guarantse and registered charity) UNAUDITED DIRECTORS, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 MYRUS SMITH Chartered Accountants Norman House, 8 Burnell Road, Sutton, Surrey. SM14BW
THE MIDI MUSIC COMPANY (A company limited by guarantee and registered charity) CONTENTS Page Reference and Administrative Details of the Charity, its Directors and Advisers Trustees, Annual Report 2-10 Independent Examiner's Report 11 Statement of Financial Activities 12 Balance Sheet 13 Notes to the Financial Statements 14-26
THE MIDI MUSIC COMPANY {A company limited by guarantee and reglstered charity) REFERENCE AND ADMINSTRATIVE DETAILS OF THE CHARITY, ITS DIRECTORS AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024 Directors Gordon Imlliams, Chair Geraint Howells, Treasurer Isabel Newman Robert Filzpatrick Indy Vidyalankara Mervyn Lyn Claire Shomade Company registered number 02989656 Charity registered number 1045693 Registered office 77 Watson's Street Deptford London SE8 4AU Executive Director Wozzy Brewster, OBE, FRSA Independent Examiner Myrus Smith Norman House 8 Burnell Road Sutton Surrey. SM14BW Bankers Barclays Bank PIC 93 Lewisham High Street Lewisham SE13 6BB CAF Bank 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Charity Bank Ltd Fosse House 182 High Street Tonbridge TN9 1BE Page 1
THE MIDI MUSIC COMPANY (A company limited by guarantee and registered charity) DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Structure Governance and Mana ement Governin Document The Midi Music Company is a company limited by guarantee governed by its Memorandum and Articles of Association dated 26th July 1994 and amended 121h December 2012. It is registered as a charity with the Charity Commission and the Fundraising Regulator. ointment of Board of Directors As set out in the Articles of Association the Board of Directors has the power at any time, and from time to time, to appoint any person to be a Director, either to fill a casual vacancy or as an addition to the existing Directors. Any Director so appointed shall hold office only until the next following Annual General Meeting and shall then be eligible for re*lection. The Board of Directors operates on a voluntary basis. Directors Induction & Trainin New Directors have a preliminary meeting with the Chair and Executive Director, plus an induction meeting with the Executive Director to brief them on the vision, artistic programme, and financial performance of the charity, as well as an opportunity to observe a Board meeting. During the induction they meet key staff members and can observe various aspects of the charity's work. During the obseNation Board meeting new Directors can raise any queries or issues with the rest of the Board of Directors. The Directors are encouraged to attend appropriate training events that will facilitate the undertaking of their role and re1ve relevant Charity Commission and Clore Cultural Leadership information on due diligence and regulations. Or anisation The Board of Directors administers the charity. The Board meets quarterly and has specific members with responsibility for personnel, finance, legal, client development, philanthropy, social investment, PR, marketing, digital streaming insights and the musiG industry An Executive Director is appointed by the Board to manage the day-to-day operations of the charity. To facilitate effective operations, the Executive Director has delegated authority, within the terms of delegation approved by the Board, for operational matters including finan, personnel, resources, logistics and artistic performance related activities. Related Parties The charity'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 inv8Sted in the charity. The Midi Music Company Events Ltd is currently dormant. Risk Mana ement The Board of Directors receives quarterly financial management and operations reports, including information on cashflow, financial support, artistic programme, statistical data, resources, logistics, neOrkS, and developments, as well as holding additional meetings, when required, to discuss financial, personnel & resource issues. Page 2
THE MIDI MUSIC COMPANY (A company limited by guarantee and registered charity) DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 The staff team monitor operations and finances weekly on behalf of the Board of Directors, reporting areas of concern and highlighting the potential risk to the charity, along with recommendations for strategic development, fundraising, safeguarding children and young people, and hearth & safety. A key element in the management of financial risk is the establishment of a reserves policy and its regular review by the Board of Directors. Ob"ectlves & Activities The objects of the charity are: To promote, maintain, improve, and advance education particularly by the encouragement of the Arts including all forms of performing and visual art with special reference to the art of Music. The charity provides a Spa for all children and young people to be inspired to get into music and the creative industries, working within a safe and inspiring creative hub. The primary focus for the year was.. to reestsblish the core programme and engage regular and new participants, continued growth of CICAS@ and CAPS members for rehearsals, collaborations and recordings" retaining ongoing investment from the London Borough of Lewisham, Arts Council England, Tom ap Rhys Pry Memorial Trust and the Paul Hamlyn Foundation" and the Charity's involvement in the Black Association for the Arts UK (BAFA UK), ongoing participation in the UK Music Diversity Taskforce, BPI Music Export Growth Scheme, BRIT Award Voting Academy and WOMEX 2023, plus engagement in the AIM + FAC Artists & Managers Awards Panel, MMF Managers ACleratOr Programme panel, with the UK Music 5 Ps partnership with [PIASI, contributing towards greater diversity with the music business and nurturing tslent pathways. Support was also provided for various campaigns including, #Freemovecreate,
EveryChildAMusician,
100PercentVenues,
LetTheMusicPlay,
savebrixtonacademy
and
NoMusicOnADeadPlanet.
The strategies employed to achieve the charity's objectives are to= Provide inspiring and engaging educational and training programmes targeted at children and young people with rewarding incentives, Work in partnership with relevant agencieslorganisations to collate industry intelligen, host seminars and master classes to broaden young people's understanding of current trends and opportunities in the UK music industry and cultural industries, Develop relationships with music industry businesses lo provide access to entry level jobs, support funding investment for young people and the creation of partnership opportunities, Establish affordable access programmes for children and young people to learn how to play instruments, develop music production skills, record their music, develop creative enterprises, explore creative internships, and work placements, expand their social nelworks, rehearse. perft)rm and develop themselves as creative entrepreneurs, Participate in relevant seminars, forums, panels. advisory groups, and conferences, Develop our strategic partnerships and neOrkS. The four major areas of activity are: educational programmes; creative industries careers advice seNice" events,. and partnership projects. Page 3
THE MIDI MUSIC COMPANY (A company limited by guarantee and registered charity) DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 The educational programmes are primarily focused on providing music & production education for children and young adults. They aim to offer opportunities in instrumental skills development, music composition, music production, mixing & mastering, music business, bursaries, and cross-art form initiatives. We engage industry professionals who share their expertise to inspire emerging talent to understand the trends and opportunities. The programmes allow individuals to enhan their creative skills and identify progression routes. Participants are referred from schools, colleges, looked after children services, asylum and refugee projects, social services, youth offending schemes, pupil referral units, looked after services, youth projects, local housing initiatives, mental health services, employment initiatives and other related agencies. The Creative Industries Careers Advice Service CICAS@ (pronounced "seekers") creates a platform for young adults to explore their potential and identify pathways for their creative development including skills- based training, work experience placements, apprenticeships. internships, mentorships, self-employment and establishing new enterprises. The 1.1 advice, support and guidance sessions continue online via Zoom, enabling more young people from across the country to access careers support. with continuous demand for one-to-one sessions. as well as talent development, industry contacts, marketing support, funding advice & guidance, references, and referrals, plus access to iehearsal and recording facilities at MMC onsite. The CICAS@ Podcasts continue to profile emerging tslent on Soundcloud, MMC'S website and newsletter. The partnership projects that engage children and young people enable participants to connect with emerging artists locally, regionally, and nationally. These represent Spoken Word, music. songwriting and production projects, internats'onal initiatives, seminars, conference panels the work placements at MMC for students attendin9 formal educational establishments were fully re-instated. Public Benefit The charity provides public benefrt through a variety of different approaches.. Providing subsidised afft)rdable instrumental, Spoken Word and music production tuition for socio- economically disadvantaged children, complimented by the Tom ap Rhys Pryce Music Bursary programme for 1..1 tuition at The ConseNatoire in Blackheath with partner nominations from YUAF and Fairbeats Music. The Conservatoire also supports the programme by providing extended bursaries, where possible. plus the Jack Petchey Foundation distributes Bronze Awards for Outstanding Achievement for AYM students Mentoring & supporting young people and arts professionals Providing free careers advice and discounted access for CICAS@ & CAPS (Creative Associate Professionals CICAS@ alumni) members to rehearsal space, music production equipment, recording facilities, multimedia reSoUrs, vocal coaching. talent development, funding advice & guidance, references, industry links, marketing, digital media, PR & marketing support Developing new audiences for young emerging artists, bands and creative entrepreneurs via our website, social media, newsletter, podcasts, showcases and events, in addition to providing MMC Takeovers across various platforms or providing pathways to performan opportunities Circulating creative & cultural industries data and intelligence to provide greater equity for young people from diverse backgrounds through the CICAS@ and CAPS programmes Linking emerging talent to industry professionals via our established creative & cultural industries networks and contacts Safeguarding children and young people so that they Can engage in positive, creative learning experiences, supported by experienced and professional staff team5 and volunteers, who are DBS checked, according to child protection regulations. Page 4
THE MIDI MUSIC COMPANY (A company limlted by guarantse and registered charity) DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Achievements & Performance MAIN ACTIVITIES Aspiring Young Musicians (AYM) OUTCOPJIES 24 children aged 11 16 participated in Music Production, MCISpoken Word and Keyboards for Songwriting classes. KEY FACTORS AYM students in Year 10 & 11 were studying for GCSES during the academic year reducing registrations. Cre8tlv@ 47 students aged 16+ participated in the Music Production, Mixing & Mastering & new DJ Skills evening courses and one-day DIY Releasing course 17°A increase in registrations during the year and the introduction of the DJ Skills course led to students DJing at external events. CICAS@: Creative Industries Careers Advice Service (pronounced "Seekers.) 1,447 young adults aged 16+ received 'one-to-one' information, advice and guidance, as well as access to resources, marketing support, funding advice guidan, industry contacts and artistic development. On-going demand with 44Q/o increased users, including other unregistered band members and artists registered CICAS@ members surveyed (218) with 60, remaining registered with industry bodies, 13 CICAS@ 31+ members and 74 x CICAS@ alumni part of the Creative Associate Professional {CAPs) programme. CICAS@ Podcasts - on our MMC website profiling 12 Young EntrepreneurslArtists Opportunity for CICAS@ members to feature in an on-line podcast. CICAS@ Internships for 3 young producers Arinola continued her internship releasing her second single 'Thought U Might,, garnering interest from Europe's leading Music PrOdur Manager, Stephen Budd. Isaac Baden-Povwell aka Wazoo completed the intemship with a remix by Dave Okumu 'Eja' and continues to run his Greenwich-based recording studio. New Intem Rowan Mathews aka Mantooth started Autumn 2023. The Interns attended the Artists & Managers Awards, MMF Manager Accelerator programme anniversary @ YouTube and other relevant industry seminars. Page 5
THE MIDI MUSIC COMPANY (A company limited by guarantee and registered charity) DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Music ExploslonTM Industry Talks + Networking A series of music business talks with Q&A and neorking, covering recording & distribution, music contracts, digital marketing. independent record labels, funding audien development and business affairs- 37 x participants aged 16+ These sessions were supported by.. 0207 Def Jam Records, Rapture Records, IPIASI, PRS for Music Foundation and the Arts Council. Summer Showcase & mini Sharings 2 x AYM Sharings at the end of each term inperson with students and parentslcarerslfriends 1 x Summer Showcase The Sharings and Summer Showcase are great opportunities for students to showcase their ongoing work and see their peers perform trom the Tom ap Rhys pry Music Bursary Award winners_ Outreach & Partnerships 8 x bursary awards to children and young people aged 11 19 to attend The Conservatoire in Blackheath for 1-.1 tuition over the period of one year Tom's Trust supports the Bursary programme allowing the cohort to develop instrumental skills on an instrument of their choi. Placements and work experience from educational establishments MMC hosted a 2mth internship from University of Sussex and work experience placements from Prendegast Ladywell, Sydenham Girls and Bexley Grammar Secondary Schools. Deaf Rave Music Production & Access programme for Deaf young people. Continued to support Deaf producers and sign song artists: SignKid was profiled on the BBC signed Live Lounge and was sponsored by Champion brand with a feature in High Snobiety. MC Geezer is studying at Westminster University. Deaf Rave CIC Introduced Deaf Rave to Sony Music and the Association for Independent Festivals to support opportunities for sign song artists and greater understanding of the Deaf community. Page 6
THE MIDI MUSIC COMPANY (A company limited by guarantee and registered charity) DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Inspiration@ Network - strategic partnership with Impact 10, IRIEI dance theatre and Lionbeat Continued progression routes for young people into the creative & cultural industries. supported by referrals. Identifying additional partners. Creative Associate Professional Group (CAPS): MMC graduates, alumni, industry professionals and associated young entrepreneurs working together to increase their resources as a collective Tre continued development of a strategic grass roots network with the capacity to record, release, publish and distribute new music Steam Down steam Down did a grassroots tour in the USA after getting their US visas supported by MMG, Bacon's College- Southwark MMC worked with 26 x students to develop production and songwriting skills, culminating in a recording session at MMC. Association of Independent Music (AIM) Partnership organisation with free or discounted access for CICAS(b & CAPS members to AIM Sync Conference, AIM Connected Conferen, AIM Academy webinars and industry intelligence Partnership organisation with free and discounted access to webinars and industry intelligence, plus CICAS@ member opportunities to become FAC Ambassador 3 x artists performed on the Queen street Stage- Angelina Luzi, Damelola and Barbarella hosted by Ola Torch Featured Artist Coalition (FAC) London Landmarks Half MarathonlMMC Takeover SDS Entertainment - Croydon Continued mentoring, support and guidance. Developing Al + Music project partnership with MMC- BAFA UK Board member BAFA UK Ongoing participation in the Black Association for Arts UK led by founder, Cleveland Watkiss and chaired by James Joseph Page 7
THE MIDI MUSIC COMPANY (A company limited by guarantee and registered charlty) DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Lionbeat Partnered with Lionbeat on the Local is Logical BassisBike zero- carbon project sponsored by Matt Black Lewisham Cultural Partnership MMC joined the LCP Board working with other creative organisations across the borough IPIAS] - Black History Month Event Southwark Delivery of Resonance in partnership with IPIAS] providing music industry panel and artist showcase at Peckham Audio International Creative Knowledge & Skills Cultural Partnership- Mauritius On hold. WOMEX 2023 Participation in person in Spain with a range of intemational music businesses. Events 3 x The Breakout Club - 235 audience Live music events at the Fox + Firkin featuring emerging artists Seminars, Fowms & Conferences The staff team engaged with various forums, industry bodies and events, including. Lewisham Music. LEAN, BPI'S Music Export Growth Scheme Board, Artist & Manager's Awards, AIM Awards, MMF Music Manager AcleratOr programme panel, Association for Electronic Music (AFEM), Action for Diversity & Development, English Folk Expo, IRIEI dance theatre, Black Lives in Music, UK Music Diversity Taskforce, London Youth + more Contribution to panels, local community, and creative strategies, as well as raising the profile of the charity. Extension of links and contacts within the commercial UK music industry and other creative industries. Page 8
THE MIDI MUSIC COMPANY (A company limited by guarantee and registsred charity) DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Flnancial Review The principal funding sources were the Arts Council England (NPO), the London Borough of Lewisham, Paul Hamlyn Foundation and Tom ap Rhys Pryce Memorial Trust, with additional funds from the Jack Petchey Foundation. The applications to Warner Music Group Blavatnik Family Foundation and London Youth were UnSucsSfUl. The Charity reiVed donations via Easy Fundraising. Amazon Europe. PayPal, DONR and BPI. The Directors, focus on identifying philanthropic and corporate social responsibility investment, with ongoing discussions with the Sony Music Social Justice Fund and exploratory talks with PPL. The Arts Council England NPO and Lewisham Council investments are subject to potential one-year extensions taking their commitments up to 2027 and 2026, respectively. Investment Powers & Polic Under the Memorandum and Articles of Association, the charity has the power to invest in any way the Directors wish. The Directors, having regard for the objects stated in the Memorandum of Association, have operated a policy of keeping available funds in an interest-bearing account as part of their reserves policy. Reserves Polic The activities of The Midi Music Company are fInand on a project-funding basis with a measure of unrestricted funding to cover necessary administration and overheads. There are no capital reserves that can be placed on deposit or othemise prudently invested. Accordingly, all Cash resources are held in the charity's current and reserve accounts. A reserve account has been estsblished at CAF Bank and Charity Bank providing financial resourtss in the event of cash flow requirements and redundancy packages. An annual deposit is made, when possible, and interest is accrued quarterly. The actual reserve account balance, held in the CAF Gold Bank account, on 31st March 2024 was £20,756.27 and Charity Bank wa5 £52,454.73. Plans for Future Periods MMC'S ongoin9 priority is to attract permanent staff to the core team having utilised temporary cover staff in 2023124, with current recruitment and retainment issues affecting the cultural & creative industries and other sèctors, both private and public. The enhancement of the artistic programme with a variety of music projects currently in development that will add value to the core programme and bring greater benefits to a range of partnerships, including the music industry, establishing collaborative projects with [PIASI Diversity Team to deliver Music Explosion Speed Dating TalkslQ&As, Lewisham Cultural Partnership, IRIE! dance theatre, Association for Electronic Music, English Folk Expo and other relevant organisations, talent development and music education programmes for aspiring and emerging artists. as well as partnerships with Lionbeat in Lewisham and SDS Entertainment in Croydon. Page g
THE MIDI MUSIC COMPANY (A company limited by guarantee and registered charity) DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Small Com an ecial Provisions The report of the Directors has been prepared taking advantage of the small companies. exemption of section 417111 of the Companies Act 2006. It was approved. and authorised for issue, by the Directors on 20th Sep mber 20 and signed on its behalf by- Gordon Williams Chair, Board of Directors Page10
THE MIDI MUSIC COMPANY (A company limited by guarantee and registsred charity) INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2024 I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2024 which are set out on pages 10 to 22. Responsiblllties and basis of report As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act,). Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act,). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145{5)(b) of the 2011 Act. Independent examiner's statement I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect= accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or the accounts do not accord with those records" or the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair view, which is not a matter considered as part of an independent examination- or the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). I have no cOnrnS and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understsnding of the accounts to be reached. K.C. Fisher FCA % Myrus Smith Chartered Accountants Norman House 8 Burnell Road Sutton, Surrey SM14BW 30 September 2024 Page11
THE MIDI MUSIC COMPANY (A company limited by guarantee and registered charity) STATEMENT OF FINANCIAL ACTIVITIES (Incorporating Income and Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2024 Unrestricted Restricted Funds Funds Total 2024 Total 2023 Notes Income from: Grants, Trusts and donations Course fees Event and venue hire Bank interest re1vable Other income 183,913 5,400 6,356 1,904 1,644 24,510 208,423 5,400 6,356 1,904 1,644 205,506 5,159 4,692 772 1,300 Total income 199,217 24,510 223,727 217,429 Expenditure on: Charitable activities: Staff costs Project costs Office costs Publicity Music equipment maintenance Governance costs Depreciation 146,051 12,286 38,454 6,308 5,026 15,224 400 500 151,077 27,510 38,854 6,808 135,485 15,815 41,508 6,688 373 5,426 11,209 4,686 6,063 4,686 6,063 Total expenditure 213.848 21,150 234,998 216,484 Net movement in funds (14.631) 3,360 (11,271) 945 Reconciliation of funds: Total funds brought foward 96,157 500 96,657 95,712 Net movement in funds (14,631) 3,360 (11,271) 945 Total funds carried forward 81,526 3,860 85,386 96,657 All income and expenditure derives from continuing activities. The Statement of Financial Activities includes all recognised gains and losses recognised in the year. In 2023, of the total income of £217,429, £206,529 was to unrestricted funds and £10,906 was to restricted funds. In 2023, of the total expenditure of £216,484, £205,234 was from unrestricted funds and £11,250 was from restricted funds. The notes form part of the financial statements. Page 12
THE MIDI MUSIC COMPANY (A company limited by guarantee and registered charity) BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 FIXED ASSETS Notes Tangible assets Investments 6,415 12,478 10 6.416 12,479 CURRENT ASSETS Debtors Cash at bank and in hand 11 1,500 94,444 93,670 93.670 95.944 CREDITORS: Amounts falling due wilhin one year 12 114,700} 111,7661 NET CURRENT ASSETS 78.970 84,178 TOTAL NET ASSETS 85,386 96,657 Charity Funds Restricted funds UnFesricted funds 3,860 81,526 500 96,157 Totsl funds 85,386 96,657 The Charity was entitled to exemption from audit under Section 477 of the Companies Act. The members have not required the company to obtain an audit for the year in question in accordance with Section 478 of the Companies Act 2006. The directors acknowledge their responsibilities for compSying with the requirements of the Act with respect to accounting records and preparation of financia5 statements. The financial statements have been prepared in accordance with the provisions applicab5e to entities subject to the small companies regime-. The financial statements were approved and authorised for issue by the Directors on 20th September 2024 and signed on ts behalf by: Gordon Williams Chair aint Howells asurer The notes form part of the financial *atements. Page 13
THE MIDI MUSIC COMPANY (A company limited by guarantee and registered charity) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 General information The Midi Music Company is a private charitable company and is registered with the Charity Commission (Charity Registered Number 1045693) and Registrar of Companies (Company Registration Number 02989656) in England and Wales. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. The address of the registered Offi is given in the Charity information 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 to be inspired to get into music and the creatNe industries. Accounting Policies 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP (FRS 102) Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The Midi Music Company meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The financial statements are presented in pound sterling which is the functional currenw of the Charity and rounded to the nearest pound. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless othewise stated. 2.2 Going concern The Trustees have assessed the use of going conrn and have considered possible events or conditions that might cast signifi'cant doubt on the ability of the Charity to 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 resources to continue in operational existence for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing these financial statements. 2.3 Income All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Page 14
THE MIDI MUSIC COMPANY (A company limited by guarantee and registsred charity) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting Policles (continued) 2.3 Income (continued) For donations to be recognised the Charity will 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 entitlement can be obtained then income is deferred unkn'l those conditions are fully Met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled. The Charity receives grants in respect of furthering its charitable objectives. Income from government and other grants are recognised at fair value when the Charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided, or on completion of the service. 2.4 Expenditure All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. Expenditure on charttable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. 2.5 Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity- this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. 2.6 Taxation The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 201 O and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. 2.7 Tangible fixed assets and depreciation Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Page 15
THE MIDI MUSIC COMPANY IA company limfited by guarantee and registered charity) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting Policies (continued> 2.7 Tangible fixed assets and depreciation (continued) Tangible fixed assets are initially recognised at cost. After recognition, under the cost model tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. 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 between the carrying value of fixed assets and their recoverable amounts are recognised as impaimEnts. Impairment losses are recognised in the Statement of Financial activities. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following bases: Improvements to rented property offi equipment Music equipment - 20 years - 4 years - 4 years 2.8 Investments Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balan Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as 'Gainsl(Losses) on investments, in the Statement of financial activities. The investment in the Charity's trading subsidiary is included on the Balance Sheet at cost. The last 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 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-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 2.11 Liabilities and provisions Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Page 16
THE MIDI MUSIC COMPANY (A company limited by guarantee and registered charity) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting Policies (contlnued) 2.11 Liabilities and provislons (continued) Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the 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 pre-tax 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 finan cost. 2.12 Financial instruments The Charity only holds basic Financial Instruments. The financial assets and financial liabilities 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 detailed in Note 11. Prepayments are not financial instruments. Cash at bank- is classified as a basic financial instrument and is measured at face value. Liabilities - trade creditors, accruals and other creditors will be classified as financial instruments and are measured at amortised cost as detailed in Note 12. Taxation and social security are not included in the financial instruments disclosure. Deferred income is not deemed to be 8 financial liability, as the cash settlement has already taken place and there is simply an obligation to deliver charitable services rather than cash or another financial instrument. 2.13 Pensions The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year. 2.14 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Directors in furtheran of the general objectives of the Charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Directors for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specifiG fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. Page 17
THE MIDI MUSIC COMPANY (A company limited by guarantee and registered charty) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Income from donations, grants and trusts Unrestricted Restricted Funds Funds 2024 2024 Total Funds 2024 Donations Grants and Trusts In-kind donations 930 182,983 10,000 10,930 14,510 197,493 183,913 24,510 208,423 Unrestricted Restricted Funds Funds 2023 2023 Totsl Funds 2023 Donations Grants and Trusts In-kind donations 15,215 179.391 15,215 190,291 10,900 194,606 10,900 205,506 Analysis of Grants and Trusts Unrestricted Restricted Funds Funds 2024 2024 Total Funds 2024 Arts Council England grant London Borough of Lewisham grant Jack Petchey grant Tom Ap Rhys Pryce Trust Paul Hamlyn Foundation 119,391 30,592 119,391 30,592 900 13,610 33,000 900 13,610 33,000 182,983 14,510 197,493 There are no unfulfilled conditions or other contingencies attached to the government grants above and below.. Page 18
THE MIDI MUSIC COMPANY (A company limitsd by guarantee and registered charity) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Income from donations, grants and trusts {continued) Analysis of Grants and Trusts (contlnued) Unrestricted Restricted Funds Funds 2023 2023 Totsl Funds 2023 Arts Council England grant London Borough of Lewisham grant Jack Petchey grant Tom Ap Rhys Pryce Trust 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 Project costs Total 2024 Total 2023 Trainee costs Travel and subsistence Documents and material Training Special Projects 11,344 4,873 696 1.597 9,000 10,626 3,586 690 913 27,510 15,815 Office costs Total 2024 Total 2023 Light, heat and premises Rent Insurance Postage and stationery Telephone and internet Office equipment maintenance Bank charges 17,937 154 4,588 3,805 11,131 921 318 17,341 143 5,273 3,367 13.557 1,575 252 38,854 41,508 Page 19
THE MIDI MUSIC COMPANY {A Gompany limited by guarantee and registered charity) NOTES TO THE FINANCIAL STATEAfjENTS FOR THE YEAR ENDED 31 MARCH 2024 Governance costs Total 2024 Tota 2023 Independent Examiners, remuneration Independent Examiners, remuneration - Other fees Professional fees 3,600 4,020 420 986 1,086 4,686 5,426 staff costs Total 2024 Total 2023 Wages and salaries Social security costs Contribution to defined contribution pension schemes 148,100 2,977 131,924 3,436 105 151,077 135,465 Included within wages and salaries are £8,605 to freelance tutors (2023 £8,040) and £63,495 to self*mployed and casual staff (2023 .' £45,143). The average number of persons employed by the Charity during the year was as follows: 2024 No 2023 No Direct staff No employee received remuneration amounting to more that £60,000 in either year. The total amount of employee benefits received by Key Management Personnel was £56,783 (2023 . £57,088) which includes employers national Insuran contributions and employers pension contributions. The charity considers its Key Management Personnel to comprise the Directors and Executive Director. Directors remuneration and expenses During the year, no Directors received any remuneration or other benefits (2023 . £Nil). During the year ended 31 March 2024, no Director expenses have been incurred (2023 . £Nil). Page 20
THE MIDI MUSIC COMPANY (A company limited by guarantee and registered charity) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Tanglble fixed assets Improvements to rented property Office equipment Music equipment Totsl Cost or valuation At 1 April 2023 Disposals 131,806 26,774 91.171 249,751 At 31 March 2024 131,806 26,774 91,171 249,751 Depreciation At 1 April 2023 Charge for the year On disposal 131,806 17,942 2,717 87,525 3,346 237,273 6,063 At 31 March 2024 131,806 20,659 90,871 243,336 Net book value At 31 March 2024 6.115 300 6,415 At 31 March 2023 8,832 3,646 12,478 10. Flxed asset investments Investments in subsidiary Companies Cost or valuation At 1 April 2023 At 31 March 2024 Net book value At 31 March 2024 At 31 March 2023 Page 21
THE MIDI MUSIC COMPANY (A company limited by guarantee and registered charity) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 10. Flxed asset investments (continued) The Midi Music Company Events Limited The Midi Music Company holds 1 £1 ordinary shares in The Midi Music Company Events Limited (Company Number. 04654990) representing a 100 % holding. The registered offiGE of The Midi Music Company Events Limited is 77 Watsons Stree( Deptford, London, SE8 4AU. The financial results of the subsidiary were as follows.. Income - £Nil Expenditure - £Nil Surplus for the period - £Nil Net assets - £1 In February 2003, the Charity formed Midi Music Company Events Limited, which is a wholly owned trading subsidiary formed for the purpose of organising large 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 2023 is shown above. 11. Debtors 2024 2023 Due within one year other debtors 1,500 1,500 12. Creditors: Amounts falling due within one year 2024 2023 Trade creditors Other taxation and social security other creditors Accruals and deferred income 9.150 1,950 6,237 1,509 3,600 4,020 14,700 11,766 Deferred in¢ome At 1 April 2023 Resources deferred during the year Amounts released from previous periods 5,000 (5,000) At 31 March 2024 Page 22
THE MIDI MUSIC COMPANY (A company limlted by guarantee and reglstered Gharity) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 13. statement of funds Balance at 1 April 2023 Balance at 31 March 2024 Statement of funds - Current year Income Expenditure Transfers Unrestricted Funds Designated funds Fixed asset fund 12,478 (6,063) 6.415 General Funds General fund 83,679 199,217 (213,848) 6.063 75,111 Total Unrestricted funds 96,157 199,217 {213,848) 81,526 Restricted funds Tom's Trust Jack Petchey Foundation Special Project 13,610 900 10,000 {10,750) (1.400} {9,000) 2,860 500 1.000 500 24,510 (21,150) 3,860 Total of funds 96,657 223,727 (234,998) 85,386 The Fixed Asset fund represents the net book value of unrestricted tangible fixed assets. Each year any additions or disposal movements are transferred between this fund and Unrestricted funds. Unrestricted funds are general funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. The net transfer in of £6,063 relates to the depreciation 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 songwriting and music production tuition and the Tom ap Rhys Pryce Music Bursary Awards to the Conservatoire, including partner nominations from YUAF and Fairbeat Music. The additional Tom's Trust funds represent the new investment in the Music Camps programme. The Jack Petchey Foundation grant represents funds which are to be used for the Outstanding Achievement awards presented to the Aspiring Young Musicians students. The Special Project fund represents the donation from Matt Black towards MMC'S partner project with Lionbeat Ltd to launch the BASSISBIKES {zero-carbon & visual mobile sound system) with showcase events and audience developments. Page 23
THE MIDI MUSIC COMPANY (A company limited by guarantee and registered chartty) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 13. Statement of funds (continued) Balance at 1 April 2022 Balance at 31 March 2023 Statement of funds - Prior year Income Expenditure Transfers Unrestricted Funds Designated funds Fixed asset fund 23,687 (11,209) 12,478 General Funds General fund 71,175 206,529 (205,234) 11,209 83,679 Total Unrestricted funds 94,862 206,529 (205,234} 96,157 Restricted funds Tom's Trust Jack Petchey Foundation 10,000 900 (10,000) (1,250) 850 500 850 10,900 {11,250) 500 Total of funds 95,712 217,429 (216,484) 96,657 Page 24
THE MIDI MUSIC COMPANY (A company Iimlted by guarantee and registered charity) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 14. Analysis of net assets between funds Analysis of net assets between funds Current year Unrestricted nds 2024 Restricted Funds 2024 Total Funds 2024 Tangible fixed assets Fixed asset investments Current assets Creditors due within one year 6,415 6,415 89,810 114,700) 3,860 93,670 (14,700) Total 81,526 3,860 85,386 Analysis of net assets between funds Prlor year Unrestricted funds 2023 Restricted Funds 2023 Total Funds 2023 Tangible fixed assets Fixed asset investments Current assets Creditors due within one year 12,478 12,478 95.444 (11,766) 500 g5,944 (11,766) Total 96,157 500 96.657 15. Pension Commitments The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £Nil (2023 . £105). Contributions of £Nil (2023 . £Nil) were payable to the fund at the Balance Sheet date. 16. Related party transactions The Executs've Director was not remunerated in the current or prior year for her role as a professional artist manager. At the year end, there was an outstanding debtor balance of £Nil with the Executive Director {2023 = £1,500}. There are no other related party transactions during the year other than the Key Management Personnel remuneration shown in Note 7. 17. Section 37 disclosure The Charity has recognised total income from the London Borough of Lewisham of £30,592 (2023 = £30,000) in respect of grant aid for core costs. These funds were fully expended during the year {2023 . fully expended). At 31 March 2024, £Nil (2023 .' £Nil) has been deferred to the next financial year. Page 25
THE MIDI MUSIC COMPANY (A company limited by guarantee and registered charity) INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 2024 2024 2023 2023 INCOME Grants Trust income Hire services Course fees Interest receivable Donations and other income 149,983 47,510 6,356 5,400 1,904 12,574 149,391 40.900 4,592 5,159 772 16,515 Total Income 223,727 217,429 EXPENDITURE Salaries Casual and self-employed staff Premises and office running costs Trainee costs Documents and materials staff travel, subsistence and training Publicity Bank charges Music equipment maintenan Depreciation Governan costs Special projects 78,977 72,100 38,536 11,344 82,282 53,183 41,256 10,626 690 4,499 6,688 252 373 11,209 5,426 6,470 6,808 318 6,063 4,686 9,000 Total expenditure 234,998 216,484 Incomel(expenditure) for the reporting period £(11,271) £945 Page 26