YOUTH MUSIC CENTRE UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 **YOUTH MUSIC CENTRE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **DIRECTORS** J Edwards S Warner (Chair) M Hurwitz A Sharpe A Craig I B Brito H Taherabadi (Resigned 24/1/2021) A Burch ## **SECRETARY** S Warner ## **REGISTERED OFFICE** 29 Whitehall Lodge Pages Lane London N10 1NY ## **COMPANY REGISTERED NUMBER** 03816808 ## **REGISTERED CHARITY NUMBER** 1077495 ## **ACCOUNTANTS** Pollock Accounting Ltd Chartered Management Accountants 3/4 Sentinel Square London NW4 2EL page 1 **YOUTH MUSIC CENTRE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **CONTENTS** |Pages|| |---|---| |3-4|Councillors' Report| |6|Independent Examiners Report| |5|Income Statement| |7|Statement of Financial Position| |8-10|Notes to the Financial Statements| The following do not form part of the statutory financial statements: 11 Detailed Income & Expenditure Account 12 Income & Expenditure Account Summaries page 2 **YOUTH MUSIC CENTRE STRATEGIC REPORT FOR YEAR ENDED 31 JULY 2021** ## **REVIEW OF THE BUSINESS** ## **Objectives and Activities:** The charity is constituted as a company limited by guarantee, and is therefore governed by a memorandum and articles of association. The charity's object and its principal activity is to provide a happy environment in which young people can come together to realise their musical potential. This is achieved through the provision of a Saturday morning music school, the Youth Music Centre, offering a variety of musical activities and classes ranging from musicianship, choir and instrumental tuition to orchestras and ensemble work. The charity wishes to give opportunities to all young people irrespective of ability or financial situation, therefore entry is open to anyone who wants to take part and assisted places are provided where necessary. The charity is so organised that its Council Members meet regularly with the Artistic Director, the Administrator and the Finance Assistant to offer their support in the running of the school and to oversee its financial management. Steps have been taken to allocate specific appropriate roles to Council Members/Trustees to ensure appropriate oversight in the interests of good governance. ## **Development, activities and achievements this year:** The pandemic meant that in the first half of the year YMC faced an extremely challenging time as it was unable to continue its activities at Bigwood House. However, it was able to adapt and continue to function using Zoom as a means of continuing to deliver tuition, thanks to the work undertaken by the Artistic Director, and all the members of the teaching and support staff. The regular Saturday morning activities resumed at Bigwood House once Covid restrictions permitted and a successful concert was held outdoors at the end of the summer term, attended by the Deputy Mayor of Barnet. The Concerto Prize Competition was also resumed, adjudicated by our Patron Gyorgy Pauk, with a well attended Prize Winners' concert, in the presence of the Mayor of Barnet and her consort. There has been a decline in student numbers, to which the pandemic contributed, but steps are being taken to attract new students, and we closely monitor the trends, with particular reference to the termly income which this generates, against termly expenditure. Charitable donations are of considerable importance to YMC's operations. There have been generouse donations this year from a number of organisations and foundations to which applications were made, as well as from individuals, for which YMC remains extremely grateful. We have relied on the advice and assistance of a professional fund raiser, working in conjunction with the Artistic Director, whose hard work on this is much appreciated. We have been especially pleased to be able to use the funds raised to help students from families suffering financial hardship in the current financial climate. Our approaches to local schools and offers to do workshops in them to generate interest will continue once conditions permit, A termly newsletter, which provides an excellent means of disseminating information to everyone associated with YMC is sent out. page 3 **YOUTH MUSIC CENTRE STRATEGIC REPORT FOR YEAR ENDED 31 JULY 2021** During this year Nigel Goldberg stood down as Artistic Director after 22 years of service, and the Directors which to thank him for the immense contribution he has made during that time to the development of YMC and to the high musical standards achieved by it's students. We were pleased to appoint as his successor Marina Solarek who has been associated with YMC for many years as it's Administrator, and who brings to the post a wealth of experience as a teacher and from a successful professional career as a violinist. We have also appointed as Administrator Henry Hargreaves who has also taught the cello for a number of years. Our thanks also go to Natasha Dedic (Finance Assistant) for her regular and comprehensive financial reports, and to all the teachers at YMC for the skill and dedication they bring to their roles. In the coming year, we plan to continue and consolidate the various activities by continuing to recruit more students, and maintaining and expanding existing classes and opportunities that we offer. However, we are also aware of the importance of being realistic when setting the budget for the following year. ## **FINANCIAL REVIEW** The statement of financial activities shows a stable position with an excess of expenditure over income of £9,573 for the year, Given the difficulties faced in the current year this is not perhaps surprising. We continue to raise money for the Bursary Fund, and to monitor fees charged. Our carried forward reserves stand at £41,790, a level at which the directors feel is appropriate for the stability of the charity going forward. ## **PRINCIPAL RISKS AND UNCERTAINTIES** The effects of the pandemic, and a reduction in student numbers from previous years remain the principal risk. The risks, and responses to them, are reviewed at each meeting of YMC's council members. Subject to these matters, the directors are satisfied as to the continuing viability of the charity. ## **ON BEHALF OF THE BOARD:** S Warner - Director Date: 9 February 2022 page 4 ## **INDEPENDENT EXAMINER'S REPORT TO THE BOARD OF DIRECTORS ON THE FINANCIAL STATEMENTS OF YOUTH MUSIC CENTRE FOR THE YEAR ENDED 31 JULY 2021** I report on the accounts of the company for the year ended 31 July 2021 which are set out on pages 6 to 10 ## **Respective responsibilities of Council members and examiner:** The council members (who are also directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The Council members consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is required, it is my responsibility to: - examine the accounts under section 145 of the 2011 Act; - to follow the procedures laid down in the general Directions given by the Charity Commission under Section 145(5)(b) of the 2011 Act; and - to state whether particular matters have come to my attention. ## **Basis of independent examiner's report:** My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as councillors concerning any such matters.The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts a present a 'true and fair view' and the report is limited to those matters set out in the statement below. ## **Independent examiners statement:** In connection with my examination, no matter has come to my attention: (1) which gives me reasonable cause to believe that in any material respect the requirements to keep accounting records with sections 386 and 387 of the companies act 2006; and to prepare accounts which accord with the accounting records, comply with the accounting requirements of sections 395 and 395 of the companies act 2006 and with the methods and principles of the Statement of Recommended Practice applicable to charties preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom (FRS 102) (effective 1 January 2015) by Charities have not been met; or (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. Independent Examiner: David Pollock, FCMA ## **Pollock Accounting** Chartered Management Accountants 3/4 Sentinel Square London NW4 2EL 9 February 2022 page 5 ## **YOUTH MUSIC CENTRE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2021** |**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**2021**
**General**
**Bursary**
**£**
**£**
**£**
**Income and Expenditure**
**Incoming Resources**
56,831
17,010
**73,841**
**Resources Expended**
Direct charitable expenditure
57,141
-
**57,141**
Fundraising and publicity
559
-
**559**
Management and administration of the charity
25,500
-
**25,500**
Depreciation
214
-
**214**
**Total Resources Expended**
83,414
-
**83,414**
**Net (Outgoing)/Incoming Resources**
(26,583)
17,010
**(9,573)**
Transfer between funds
13,564
(13,564)
**-**
**Net (Outgoing)/Incoming Resources for the**
**year**
(13,019)
3,446
**(9,573)**
**Net Movement in Funds**
(13,019)
3,446
**(9,573)**
**Fund Balances forward at 31 July 2021**
(13,019)
3,446
**(9,573)**|**_Total_**
**_2020_**
**_£_**
_94,263_| |---|---| ||_59,294_
_2,480_
_19,432_
_286_| ||_81,492_| ||_12,771_
_-_| ||_12,771_| ||_12,771_| ||| ||_12,771_| The notes on pages 8-10 form part of these financial statements page 6 Company registered number: 03816808 **STATEMENT OF FINANCIAL POSITION AT 31 JULY 2021** ## **YOUTH MUSIC CENTRE** ||**Note**|**2021**|||**_2020_**| |---|---|---|---|---|---| |||**£**|**£**||**_£_**| |**FIXED ASSETS**|||||| |Tangible assets|3||**643**||_857_| ||||||| |**CURRENT ASSETS**|||||| |Debtors|4|**740**|||_-_| |Cash at bank||**57,514**|||_62,792_| ||||||| |||**58,254**|||_62,792_| |**CREDITORS: Amounts falling due within one year**|5|**3,175**|||_1,800_| ||||||| |**NET CURRENT ASSETS**|||**55,079**||_60,992_| ||||||| |**NET ASSETS**||**£**|**55,722**|_£_|_61,849_| ||||||| |**FUNDS**|5||||| |Restricted funds - Bursaries|||**13,932**||_10,486_| |Unrestricted funds|||**41,790**||_51,363_| ||||||| |**TOTAL FUNDS**||**£**|**55,722**|_£_|_61,849_| In approving these financial statements as Members of the Council of the company we hereby confirm the following: For the year in question the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2021 in accordance with section 476 of the Companies Act 2006. The members of the council acknowledge their responsibilities for complying with the requirements of the Companies Act with respect to accounting records and the preparation of accounts. These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 SORP. ## **The accounts were approved by the Members of the Council on 9 February 2022 and were signed on its behalf by:** S Warner, Member of the Council The notes on pages 8-10 form part of these financial statements page 7 **YOUTH MUSIC CENTRE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021** ## **1. SIGNIFICANT ACCOUNTING POLICIES** ## **1a. Statement of compliance** Youth Music Centre is a company limited by guarantee incorporated in England & Wales. Registered office: 29 Whitehall Lodge Pages Lane London N10 1NY These financial statements are the first financial statements that comply with FRS 102. The date of transition is 1 August 2020. The transition to FRS 102 has resulted in a small number of changes in accounting policies to those used previously. The nature of these changes had no overall impact on opening equity and profit for the comparative period. ## **Basis of accounting** These financial statements have been prepared in accordance with the provisions of Section 1A of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" the Charities SORP and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. ## **1c. Revenue recognition** Income is recognised when the charity has entitlement to the funds and it is probable the income will be received. ## **1d. Taxation** The charity is exempt from corporation tax on its charitable activities. ## **1e. Tangible fixed assets** Depreciation is provided, after taking account of any grants receivable, at the following annual rates in order to write off each asset over its estimated useful life. Equipment Reducing balance 25% ## **1f. Fund accounting** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Council Members. 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 a particular restricted purposes. page 8 **YOUTH MUSIC CENTRE NOTES TO THE ACCOUNTS (CONT.) FOR THE YEAR ENDED 31 JULY 2021** ## **1. SIGNIFICANT ACCOUNTING POLICIES (CONT.)** ## **1g. Short term debtors and creditors** Debtors and creditors receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in profit and loss. ## **1h. Cash and cash equivalents** Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of twelve months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. For the purpose of statement of cash flows, bank overdrafts which are repayable on demand form an integral part of the Company's cash management are included as a component of cash and cash equivalents. ## **2. DIRECTORS AND EMPLOYEES** The average weekly number of employees during the year were as follows: |||**2021**||**2020**| |---|---|---|---|---| |||**No.**||**No.**| ||Unpaid Council Members|8||8| |**3.**|**TANGIBLE ASSETS**|||| |||**Equipment**||**Total**| |||**£**||**£**| ||**Cost**|||| ||At 1 August 2020|7,775||7,775| ||At 31 July 2021|7,775||7,775| ||**Depreciation**|||| ||At 1 August 2020|6,918||6,918| ||For the year|214||214| ||At 31 July 2021|7,132||7,132| ||**Net Book Amounts**|||| ||At 31 July 2021|643
£|£|643| ||At 31 July 2020|857
£|£|857| page 9 **YOUTH MUSIC CENTRE NOTES TO THE ACCOUNTS (CONT.) FOR THE YEAR ENDED 31 JULY 2021** |**4.**|**DEBTORS**||**2021**||**_2020_**| |---|---|---|---|---|---| ||||**£**||**_£_**| ||Trade debtors||740||_-_| |||£|740|_£_|_-_| |**5.**|**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**||||| ||||**2021**||**_2020_**| ||||**£**||**_£_**| ||Accruals and deferred income||3,175||_1,800_| |||£|3,175|_£_|_1,800_| ## **6. CHARITY FUNDS** **General Bursaries (Unrestricted) (Restricted)** £ £ Balance b/fwd 51,363 10,486 Receipts 60,277 17,010 Expenditure (83,414) 0 Transfer for bursaries granted 13,564 (13,564) ----------- ----------£ 41,790 £ 13,932 ====== ====== ## **7. RELATED PARTY TRANSACTIONS** There were no related party transactions to report. page 10 ## **YOUTH MUSIC CENTRE INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2021** |**Income**
Tuition fees
Bursary funding
Donations, etc
Cost of tuition:
Rent of premises
Teachers fees
Other direct expenses
Gross profit
Bank interest received
Less:
Fund raising and marketing costs
Support costs
Depreciation and amortisation
Net (deficit)/surplus for the year
Retained surpluses brought forward
Retained surpluses carried forward|**2021**
**£**
**£**
25,635
17,010
30,968
73,613
8,032
47,471
1,638
57,141
57,141
16,472
228
16,700
559
25,500
214
26,273
(9,573)
51,363
41,790
£|**_2020_**
**_£_**
**_£_**
_71,185_
_14,738_
_8,100_
_94,023_
_7,915_
_50,290_
_1,089_
_59,294_
_59,294_
_34,729_
_240_
_34,969_
_2,480_
_19,432_
_286_
_22,198_
_12,771_
_49,078_
_61,849_
_£_| |---|---|---| This page does not form part of the Company's Statutory Financial Statements and is prepared for the information of the Directors only. page 11 ## **YOUTH MUSIC CENTRE INCOME AND EXPENDITURE ACCOUNT SUMMARIES FOR THE YEAR ENDED 31 JULY 2021** ||||**2021**||**_2020_**| |---|---|---|---|---|---| ||||**£**||**_£_**| ||**Fund raising and marketing:**||||| ||Advertising & sales promotion||559||_2,480_| |||£|559|_£_|_2,480_| ||**Support costs:**||||| ||Administrators fees||22,865||_16,743_| ||Accountancy||1,920||_1,800_| ||Insurance||434||_434_| ||Stationery & office supplies||40||_10_| ||Telephone||-||_135_| ||Sundry expenses||160||_250_| ||Bank charges||81||_60_| |||£|25,500|_£_|_19,432_| |`|||||| ||**Restricted Funds**||||| ||**Depreciation and amortisation:**||||| ||Depreciation of equipment||214||_286_| |||£|214|_£_|_286_| This page does not form part of the Company's Statutory Financial Statements and is prepared for the information of the Directors only. page 12