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2025-08-31-accounts

REGISTERED COMPANY NUMBER: 03118107 (England and Wales) REGISTERED CHARITY NUMBER: 1050105

REPORT OF THE TRUSTEES AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

FOR

NEWHAM MUSIC TRUST

Xeinadin Audit Limited Statutory Auditor 8th Floor, Becket House 36 Old Jewry London EC2R 8DD

NEWHAM MUSIC TRUST

CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31 August 2025

Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 to 9
Statement of Financial Activities 10
Balance Sheet 11
Cash Flow Statement 12
Notes to the Cash Flow Statement 13
Notes to the Financial Statements 14 to 22

NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES for the year ended 31 August 2025

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2025. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

About Newham Music

Established as a charity in 1995, Newham Music has been at the forefront of advancing music education and offering enriching musical opportunities to young people in Newham for nearly 30 years. Since 2011, the charity has served as the borough's Music Education Hub under the National Plan for Music Education, engaging with over 25,000 children and young people annually.

Objectives and aims

The objects of the Charity are for the public benefit:

By achieving its objectives, Newham Music aims primarily to benefit the community of Newham. Where its activities are outside the Borough of Newham the charity also aims to benefit the communities of London. The trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers or duties.

Our vision

Our vision is to create a vibrant and inclusive musical ecosystem where every child and young person has access to high-quality music education and opportunities to explore, develop, and showcase their musical talent. Through these experiences, we aim to empower young people and inspire a lifelong engagement with music.

Our values

The following values underpin our strategy:

Passion: we believe in the fundamental power of music and the arts to transform lives.

Inclusion: we strive for inclusion and equity for all and recognise that our differences make us stronger.

Innovation: we seize opportunities to challenge boundaries, search for and welcome new ideas, new thinking and fresh approaches in all that we do.

Collaboration: we listen to and work with our people and our partners to ensure we are greater than the sum of our parts.

Integrity: we achieve our aims without compromising our commitment to honesty and integrity throughout our work.

Strategic goals

Newham Music has translated its vision into a number of strategic goals. These goals are key outcomes and deliverables for stakeholders and partners. They outline what Newham Music aims to achieve:

Page 1

NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES for the year ended 31 August 2025

OBJECTIVES AND ACTIVITIES

Volunteers

The charity is grateful for the efforts of its volunteers, who play a vital role in enabling Newham Music to meet its objectives.

ACHIEVEMENTS AND PERFORMANCE

Review of the year and plans for the future

2024-25 has been a year of sustained delivery, consolidation and growing confidence for Newham Music. Building on thirty years of service to the borough, we have continued to fulfil our dual role as Newham's Music Education Hub and an Arts Council England National Portfolio Organisation, ensuring that high-quality music education, cultural participation and creative opportunity are accessible, inclusive and firmly rooted in local communities.

Across the year, more than 25,000 children and young people engaged in regular music activity through our programmes, with over 3,900 children with diverse learning needs participating actively. Delivery reached 98 percent of Newham schools and supported over 250 ensembles and choirs, alongside more than 200 concerts, workshops and initiatives, enabling over 5,000 young people to perform publicly. Schools consistently reported improvements in pupils' confidence, social development and wellbeing, reinforcing the effectiveness of our approach and the value of sustained provision.

National Portfolio funding has strengthened this core work by enabling us to extend impact beyond formal education settings and into the everyday cultural life of the borough. Through sustained, place-based activity in community venues and public spaces, including our cultural hub at Westfield Stratford, we delivered over 600 sessions and events in partnership with more than 45 organisations. This has created visible, welcoming routes into music-making and creative development for groups too often excluded from cultural opportunity, including disabled musicians, refugees and asylum seekers, families, emerging artists and early-career creative producers. Importantly, this is not separate from our education mission. It is how we connect first access to progression, public performance, skills development and longer-term participation.

We have continued to strengthen the organisational conditions that underpin quality, accountability and public value, including robust safeguarding, clear governance, responsible financial stewardship, and a disciplined approach to partnerships and evaluation. This enables us to maintain consistent delivery at scale, remaining accountable to children and young people, communities, funders and stakeholders, and responding effectively to local need and opportunity.

Newham Music remains financially sound and well governed, with strong trustee oversight and prudent management supporting both organisational resilience, ambition and the responsible use of public and charitable funds.

Looking ahead, our focus remains on depth, quality and sustainable impact. We will continue to integrate our Music Education Hub responsibilities and National Portfolio commitments into a single, coherent mission, ensuring that creativity is embedded within everyday life in Newham as an inclusive and long-term resource for our communities.

FINANCIAL REVIEW

Financial position

The financial results for the period to 31 August 2025 are shown in the attached financial statements.

Total income for 12 months to 31 August 2025 was £1,434,748 (17 months ended 31 March 2024 - £1,872,424) and total expenditure was £1,493,732 (2024 - £1,846,166).

There was a net decrease in funds of £58,984 (2024 - net increase of £26,258) with total funds carried forward of £648,203 (2024 - £707,187).

Investment policy and objectives

The charity has no investments. The charity does ensure that interest is earned on any surplus bank deposits it may have from time to time.

Page 2

NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES for the year ended 31 August 2025

FINANCIAL REVIEW

Reserves policy

At 31 August 2025 the charity had unrestricted reserves of £580,954 (2024: £636,490) and restricted reserves of £67,249 (2024: £70,697).

The trustees have examined the requirement for free reserves i.e those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed. The trustees consider that, given the nature of the charitable company's work, the level of reserves should be equal to approximately six months of expenditure. The free reserves as at 1 August 2025 were £500,658 (2024 - £547,250). In calculating free reserves, the trustees have excluded from total funds the Tangible assets of £147,545.

Pay policy

The pay for senior staff is reviewed annually and benchmarked against pay levels for other organisations of a similar size delivering equivalent services.

Equality & Diversity policy

Newham Music Trust celebrates the diverse cultures, communities and environments that make up our society and the multitude of dimensions which characterise our diversity including but not restricted to; age, disability, gender, marriage or civil partnerships, pregnancy, race, religion or belief, sex, and sexual preference.

Further details of the charity's policy could be obtained at - https://www.newham-music.org.uk/about-us/policies-procedures/

LOOKING AHEAD

Newham Music's ambitious plans for the future centre on inclusivity, talent development, and strengthening connections across the community. Initiatives such as Music Unlocked for SEND students, the Newham Takeover - Artist Series, and expanded scholarship opportunities for talented young musicians are part of this vision. Alongside these, capital investment in resources and infrastructure will ensure Newham Music continues to deliver high-quality provision for generations to come.

By building on its strong foundations and continually evolving to meet the needs of its community, Newham Music remains dedicated to delivering exceptional music education and experiences for the young people of Newham.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is a company limited by guarantee as defined by the Companies Act 2006. The company was incorporated on 19 October 1995 with the objective of providing musical educational facilities for schools in the London Borough of Newham. This was formerly the responsibility of the local authority. The company is registered in England and Wales under registration number 03118107. The company was registered with the Charity Commission on 23 October 1995 under registration number 1050105.

The charity's governing document is its memorandum and articles of association dated 19 October 1995, as amended on 05 Sep 2018 and as amended further on 22 Jan 2019.

The Board of Trustees is the charity's governing body. The trustees are the company's directors and are not required to be members of the company.

Recruitment and appointment of new trustees

Trustees are recruited for their skills and experience. Where a gap in an area of expertise is identified the charity seeks to recruit someone with the appropriate abilities. They are individuals involved in education, commerce or community work.

There are restrictions on local authorities and individuals associated with local authorities becoming governors. The aim of this is to preserve the independence of the charity so that it does not become subject to influence by a local authority.

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NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES for the year ended 31 August 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure

It is the responsibility of the Board of Trustees to manage the business and affairs of the charity. The articles of the association provide that there shall be not less than four governors and not more than twelve. Trustees retire by rotation every three years and are able to offer themselves for re-election.

Decision making

The Board of Trustees meet throughout the year to review the running of the charity. The charity has a chief executive who is responsible for controlling its daily operations. The chief executive reports to the Board of Trustees.

Risk management

The charity has considered the risks that may have a significant effect on its operational performance, the achievement of aims and objectives and meeting the expectations of stakeholders. Banking arrangements are normalised and early fundraising targets are being met.

The continuing award of the hub status, and National Portfolio Organisation (NPO) recognition, has secured financial stability for the medium-term. We will continue to explore different financial and organisational models and to strengthen the services we provide. In addition, the award of hub status means we must develop much closer relationships with partners and seek to lead, support, galvanise and leverage resources in a much more proactive way where possible and appropriate.

The charity predominantly works with children. The trustees recognise the absolute necessity of ensuring the protection and safety of those the charity serves. This means the trustees and all those who work or volunteer for the charity must obtain clearance from the Disclosure and Barring Service (DBS). A Safeguarding Officer is nominated and safeguarding training is compulsory for all staff.

Review of Report

As independent auditor, Xeinadin Audit Limited, has reviewed the trustees report prepared by Newham Music Trust and agree that it is in line with the charity's objectives.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

03118107 (England and Wales)

Registered Charity number

1050105

Registered office

Unit 13 St Luke Business Centre 85 Tarling Road Canning Town London E16 1HN

Trustees

Mr J C Brannick Chair Ms C H Bowden Vice Chair Mr J L Barber Director Mrs F Cullen Director Mrs E A Oriakhi Director Mrs S H Beckett Director Mr J Boux Director Mr. E. B. Niman Director Ms L A Bhattacherjee Director

Company Secretary

Mr J Bergin

Senior Statutory Auditor

Mr Thurairatnam Sudarshan FCCA

Page 4

NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

REPORT OF THE TRUSTEES for the year ended 31 August 2025

REFERENCE AND ADMINISTRATIVE DETAILS

Auditors

Xeinadin Audit Limited Statutory Auditor 8th Floor, Becket House 36 Old Jewry London EC2R 8DD

Bankers

Barclays Bank Plc Plaistow Branch 737 Barking Road London E13 9PL

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Newham Music Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the trustees to prepare financial statements for each financial year. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

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

In so far as the trustees are aware:

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 15 April 2026 and signed on its behalf by:

Mr J C Brannick - Trustee

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NEWHAM MUSIC TRUST

Opinion

We have audited the financial statements of Newham Music Trust (the 'charitable company') for the year ended 31 August 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NEWHAM MUSIC TRUST

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion;

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NEWHAM MUSIC TRUST

Our responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charitable company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

To address the risk that revenue could be misstated due to fraud, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NEWHAM MUSIC TRUST

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

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

Mr Thurairatnam Sudarshan FCCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Statutory Auditor 8th Floor, Becket House 36 Old Jewry London EC2R 8DD

23 April 2026

Page 9

NEWHAM MUSIC TRUST

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2025

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
4
Grant to cover the expenses towards the delivery
of the core roles
Fees receivable
Investment income
3
Total
EXPENDITURE ON
Charitable activities
5
Cost of music education and activities
Fund-raising costs
Total
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
51,216
-
517,879
15,494
584,589
608,867
31,258
640,125
(55,536)
636,490
580,954		 Restricted
fund
£
37,325
770,213
42,621
-
850,159
853,607
-
853,607
(3,448)
70,697
67,249		 Year Ended
31.8.25
Total
funds
£
88,541
770,213
560,500
15,494
1,434,748
1,462,474
31,258
1,493,732
(58,984)
707,187
648,203		 Period
1.4.23
to
31.8.24
Total
funds
£
115,126
1,103,227
646,173
7,898
1,872,424
1,769,656
76,510
1,846,166
26,258
680,929
707,187

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 10

NEWHAM MUSIC TRUST (REGISTERED NUMBER: 03118107)

BALANCE SHEET

31 August 2025

Notes
FIXED ASSETS
Tangible assets
10
CURRENT ASSETS
Debtors
11
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
12
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
14
Unrestricted funds
Restricted funds
TOTAL FUNDS		 2025
£
147,545
106,341
448,996
555,337
(54,679)
500,658
648,203
648,203
580,954
67,249
648,203		 2024
£
159,937
46,998
562,156
609,154
(61,904)
547,250
707,187
707,187
636,490
70,697
707,187

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

The financial statements were approved by the Board of Trustees and authorised for issue on 15 April 2026 and were signed on its behalf by:

Mr J C Brannick - Trustee

Ms C H Bowden - Trustee

The notes form part of these financial statements

Page 11

NEWHAM MUSIC TRUST

CASH FLOW STATEMENT for the year ended 31 August 2025

Year Ended
31.8.25
Notes
£
Cash flows from operating activities
Cash generated from operations
1
(119,208)
Net cash (used in)/provided by operating activities
(119,208)
Cash flows from investing activities
Purchase of tangible fixed assets
(9,446)
Interest received
15,494
Net cash provided by/(used in) investing activities
6,048
Change in cash and cash equivalents in
the reporting period
(113,160)
Cash and cash equivalents at the
beginning of the reporting period
562,156
Cash and cash equivalents at the end of
the reporting period
448,996		 Period
1.4.23
to
31.8.24
£
68,621
68,621
(42,152)
7,898
(34,254)
34,367
527,789
562,156

The notes form part of these financial statements

Page 12

NEWHAM MUSIC TRUST

NOTES TO THE CASH FLOW STATEMENT for the year ended 31 August 2025

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM
OPERATING ACTIVITIES
Year Ended
31.8.25
£
Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities)
(58,984)
Adjustments for:
Depreciation charges
21,838
Interest received
(15,494)
(Increase)/decrease in debtors
(59,343)
Decrease in creditors
(7,225)
Net cash (used in)/provided by operations
(119,208)		 Period
1.4.23
to
31.8.24
£
26,258
23,881
(7,898)
62,147
(35,767)
68,621

2.

ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.24 Cash flow At 31.8.25
£ £ £
Net cash
Cash at bank and in hand 562,156 (113,160) 448,996
562,156 (113,160) 448,996
Total 562,156 (113,160) 448,996

The notes form part of these financial statements

Page 13

NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2025

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the trustees to make significant judgements and estimates.The items in the accounts where these judgements and estimates have been made include:

Going concern assessment

The trustees, having made appropriate enquiries, consider that adequate resources exists for the charity to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt going concern basis in preparing the financial statements as at and for the period ended 31 August 2025.

The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts. The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Grants are recognised when the charity has confirmation of both the amount and settlement date. In the event of grants offered but not received, the amount is accrued for where the receipt is considered probable. In the event that a grant is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Legacies are included in the statement of financial activities when the Charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the Charity.

Fees from the provision of music education comprise tuition and related fees paid in accordance with agreements between the charity and the respective schools or individual pupils' parents. Such income is recognised when the charity is entitled to receipt under the relevant contractual agreements.

Donated goods and services, including volunteers

Donated facilities and gifts in kind are included at the value to the charity where this can be quantified.

In accordance with the Charities SORP (FRS 102) volunteer time is not recognised.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

continued...

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NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2025

1. ACCOUNTING POLICIES - continued

Governance costs

Governance costs which comprise the costs directly attributable to the governance of the Charity, including audit costs and the necessary legal procedures for compliance with statutory requirements, are allocated directly to the charitable activities to which they relate.

Status

The charity is a company limited by guarantee. The members of the company are its trustees as named in the Report of the Trustees. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

Tangible fixed assets

Musical instruments are included in the accounts at valuation based on existing use. These assets are not depreciated. Their value and condition are reviewed on a rolling basis, with a comprehensive audit conducted every five years. The most recent review took place in 2024.

The remainder of the assets are stated at cost, net of depreciation.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 20% on cost Computer equipment - 20% on cost

Taxation

The company is considered to pass the tests set out in Sch. 6, para. 1 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Pt. 11, Ch. 3 of the Corporation Tax Act 2010 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Fund accounting

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

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charity operates two pension schemes. A defined benefit scheme with the Teachers' Pension Scheme (TPS), which is only available to teaching staff. The administration of this scheme is dealt with by the Teachers' Pension Agency. In addition there is a Personal Pension Scheme administered by Peoples Pension which is available to all other employees.

Contributions to both Schemes are charged directly to the Statement of Financial Activities. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and cash 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.

Page 15

continued...

NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2025

1. ACCOUNTING POLICIES - continued

Creditors and provisions

Creditors 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 settlement can be estimated reliably.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.

Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value except for bank loans which are subsequently measured at the carrying value plus accrued interest less repayments. The financing charge to expenditure is at a constant rate calculated using the effective interest method.

2. DONATIONS AND LEGACIES

Year Ended
31.8.25
£
Grants and donations
51,216
Donations from fund raising activities
37,325
88,541
3.
INVESTMENT INCOME		 Period
1.4.23
to
31.8.24
£
38,873
76,253
115,126
Deposit account interest
4.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Grant to cover the expenses towards the
Arts Council England
delivery of the core roles
Fees receivable
Fees receivable		 Year Ended
31.8.25
£
15,494
Year Ended
31.8.25
£
770,213
560,500
1,330,713		 Period
1.4.23
to
31.8.24
£
7,898
Period
1.4.23
to
31.8.24
£
1,103,227
646,173
1,749,400

Page 16

continued...

NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2025

5. CHARITABLE ACTIVITIES COSTS

Cost of music education and activities
Fund-raising costs
6.
SUPPORT COSTS
Cost of music education and activities
Support costs, included in the above, are as follows:
Governance costs
Auditors' remuneration
7.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Auditors' remuneration
Depreciation - owned assets		 Direct
Costs
£
1,449,701
31,258
1,480,959
Finance
£
2,376		 Support
costs (see
note 6)
£
12,773
-
12,773
Governance
costs
£
10,397
Year Ended
31.8.25
Cost of
music
education
and
activities
£
10,397
Year Ended
31.8.25
£
10,397
9,891		 Totals
£
1,462,474
31,258		 Totals
£
1,462,474
31,258
1,493,732
Totals
£
12,773
Period
1.4.23
to
31.8.24
Total
activities
£
9,120
Period
1.4.23
to
31.8.24
£
9,120
10,998		 Totals
£
12,773

continued...

Page 17

NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2025

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2025 nor for the period ended 31 August 2024.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2025 nor for the period ended 31 August 2024.

9. STAFF COSTS

STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 Year Ended
31.8.25
£
948,514
50,839
33,580
1,032,933		 Period
1.4.23
to
31.8.24
£
1,115,478
39,395
38,911
1,193,784

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

Year Ended
31.8.25
Charitable activities
62
Management and administration
16
78		 Period
1.4.23
to
31.8.24
54
16
70

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Period
1.4.23
Year Ended to
31.8.25 31.8.24
£70,001 - £80,000 1 1

The charity uses volunteers during the musical concerts and other events.

continued...

Page 18

NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2025

10. TANGIBLE FIXED ASSETS

Instruments
£
COST
At 1 September 2024
115,944
Additions
3,986
Impairments
(11,947)
At 31 August 2025
107,983
DEPRECIATION
At 1 September 2024
-
Charge for year
-
At 31 August 2025
-
NET BOOK VALUE
At 31 August 2025
107,983
At 31 August 2024
115,944		 Fixtures
and
fittings
£
61,799
880
-
62,679
45,601
3,416
49,017
13,662
16,198		 Computer
equipment
£
122,040
4,580
-
126,620
94,245
6,475
100,720
25,900
27,795		 Totals
£
299,783
9,446
(11,947)
297,282
139,846
9,891
149,737
147,545
159,937

The Instruments are revalued every five years on a rolling programme. The valuation is done by the trustees with professional assistance.

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Debtors
Other debtors
Prepayments and accrued income
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses		 2025
£
55,995
53
50,293
106,341
2025
£
5,268
13,883
-
35,528
54,679		 2024
£
46,998
-
-
46,998
2024
£
-
11,304
26,455
24,145
61,904

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

continued...

Page 19

NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2025

13. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted
fund
£
Fixed assets
147,545
Current assets
488,088
Current liabilities
(54,679)
580,954
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Restricted funds
Other restricted funds
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
Restricted funds
Other restricted funds
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Restricted funds
Other restricted funds
TOTAL FUNDS

14. MOVEMENT IN FUNDS

continued...

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NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2025

14. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Other restricted funds
TOTAL FUNDS		 Incoming
resources
£
709,401
1,163,023
1,872,424		 Resources
expended
£
(730,480)
(1,115,686 )
(1,846,166 )		 Movement
in funds
£
(21,079)
47,337
26,258

Restricted funds

During the year, the charity received donations and grants to be applied to specific purposes as listed below:

Arts Council

Consists of annual funding from the Department for Education through Arts Council England to deliver our core roles - ensuring children from age 5-18 in the borough have the opportunity to sing, learn instruments, perform and have access to high-quality music experiences.

Jack Petchey awards

Donations from the Jack Petchey Foundation for awards for pupil achievement and leadership (for teachers). These awards are used for projects and reward programmes for Academy students.

Mayor's Fund for young musicians

Funds from London Music Fund (previously Mayor's Fund for Young Musicians) awards scholarships to music pupils to pay for lesson and ensemble fees.

Young Londoner Grant

Supported by the Mayor of London's Young Londoner's Fund, our Street-Studio-Success programme is an innovative fully mobile digital music project focused on early intervention, engaging young people between 12 and 14, whose behaviour is causing serious cause for concern.

SEND in Schools

Newham Music teachers go into the schools to deliver this and the schools pay for the delivery of the lessons.

15. EMPLOYEE BENEFIT OBLIGATIONS

The charity contributes to two pension schemes. A defined benefit scheme operated by the Teachers' Pension Scheme, which is only available to teaching staff. The administration of the scheme is dealt with by the Teachers' Pension Agency. Contributions to this scheme are paid in respect of current service, and there is no liability to the charity in respect of past service.

In addition, there is a Personal Pension Scheme, which is a defined contribution pension scheme, administered by Peoples' Pension which is available to all employees.

The charge to the Statement of Financial Activities of £33,580 (2024: £38,911) represents contributions to the funds during the period.

At 31 August 2025, the charity owed £1,042 in respect of Teachers' Pension and £3,057 in respect of Peoples' Pension.

continued...

Page 21

NEWHAM MUSIC TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2025

16. CONTINGENT LIABILITIES

There were no contingent liabilities at 31 August 2025 (2024 - none).

17. CAPITAL COMMITMENTS

At 31 August 2025, the charity had no contracted commitments for capital expenditure, not provided for, in the accounts (2024 - none).

18. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 August 2025

Page 22