Youth Music Centre
Charity No. 1077495
Company No. 03816808
Trustees' Report and Unaudited Accounts
31 July 2023
Youth Music Centre Contents
| Pages | ||
|---|---|---|
| Trustees' Annual Report | 2 to 4 | |
| Independent Examiner's Report | 5 | |
| Statement of Financial Activities | 6 | |
| Summary Income and Expenditure Account | 7 | |
| Balance Sheet | 8 | |
| Notes to the Accounts | 9 to | 14 |
| Detailed Statement of Financial Activities | 15 to | 16 |
Page 1
Youth Music Centre Trustees Annual Report
The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 31 July 2023.
REFERENCE AND ADMINISTRATIVE DETAILS
Company No. 03816808
Charity No. 1077495
Registered Office
29 Whitehall Lodge Pages Lan London N10 1NY
Directors and Trustees
The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year:
A. Burch I. Byrne Brito A.P. Craig J.C. Edwards M.L. Hurwitz T.E. Longstaff A. Sharpe S.C. Warner
Accountants
Pollock Accounting Ltd 3 - 4 Sentinel Square London NW4 2EL
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.
Page 2
Youth Music Centre
Trustees Annual Report
The charity is so organised that its Council Members/Directors 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.
ACHIEVEMENTS AND PERFORMANCE
The charity continues to recover from the effects of the pandemic , and in the last financial year has faced the additional challenge of the cost of living crisis.
The regular Saturday morning activities continue at Bigwood House, and successful, well attended concerts have taken place at the end of each term. The Concerto Prize Competition has also taken place, with a well-attended Prize Winners' concert (including a mini Masterclass) , giving the successful students the opportunity to perform in public as soloists with an orchestra of professional and semi-professional players
The decline in student numbers appears to have stabilised with encouraging signs now of growth. New initiatives in the teaching curriculum have contributed significantly to this. These include the opportunity for individual lessons for students and a new sight-reading skills class, which have proved to be popular. 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.
The Bursary Fund remains the focus of our fund raising activities, and the charitable donations which this generates are essential to YMC’s ability to offer assisted places. 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. We now set an annual target to ensure the sums raised are adequate to meet the calls on the fund.
There have been donations this year from a number of organisations and foundations to which applications were made , as well as from individuals, The names of the donors are included on the Bursary Fund page of YMC’s website https://www.youthmusiccentre.uk/bursary-fund/. YMC remains extremely grateful to the generosity of all these donors.
A Bursary sub-committee oversees our fund-raising activities, and reports to the Trustees/Board of Directors.
Our approaches to local schools and offers to do workshops in them to generate interest continues (a well-received performance took place at Kerem School). A termly newsletter, which provides an excellent means of disseminating information to everyone associated with YMC is sent out.
We wish to express our appreciation to the work undertaken by the Artistic Director, Marina Solarek. A number of her initiatives, including improving the profile of female composers, have been enthusiastically welcomed by students and staff. She has also worked tirelessly on behalf of the Bursary Fund, not just administering it , but also by providing a concert with her trio to raise funds.
She has been supported by the dedicated members of the teaching staff; they have also made innovative suggestions such as ‘Bring a Friend Day’. Other activities include a teachers’ concert.
Particular mention should also be made of the support staff, namely our Administrator Henry Hargreaves , and also Natasha Dedic (Finance Assistant).
The Trustees/Board of Directors receive regular and comprehensive financial reports. In the coming year, we plan to continue and consolidate the various activities by continuing to recruit more students, and by maintaining and expanding existing classes and the opportunities that we offer. However, we are also aware of the importance of being realistic when setting the budget for the following year.
Page 3
Youth Music Centre Trustees Annual Report
FINANCIAL REVIEW
The statement of financial activities shows an excess of expenditure over income of £12,308 for the year to July 2023 . We are conscious that this is the third year in succession for which there has been a deficit. Our income has risen in each of these years, but so too have our outgoings. We continue to monitor this term by term. We set our annual budget for the next academic year at our May meetings, where we seek to set the fees at a level which is realistic but affordable. We also review expenditures, especially payments to staff, for which a long overdue increase was agreed for the current financial year, and which in part accounts for the loss. On the positive side, at our most recent meeting in November 2023, we noted a profit for the Autumn term 2023, and also a modest projected profit for the Spring and Summer terms 2024. These projections , based on a conservative estimate of student numbers, and applying the levels of expenditure set for the year, and give cause for optimism.
Taking this into account, together with the level of our reserves, our funds are at a level at which the directors feel is appropriate for the stability of the charity going forward.
PRINCIPAL RISKS AND UNCERTAINTIES
The reduction in student numbers from previous years remains the principal risk. We are also monitoring whether the possible introduction of VAT on fees, should this taken place, would adversely impact on our finances. 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
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102).
Signed on behalf of the board
Stephen Warner
S.C. Warner Trustee 25 February 2024
Page 4
Youth Music Centre Independent Examiners Report
Independent Examiner's Report to the trustees of Youth Music Centre
I report to the charity trustees on my examination of the financial statements of Youth Music Centre for the year ended 31 July 2023.
Responsibilities and basis of report
As the charity's trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.
Having satisfied myself that the financial statements of the Charity 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 charity's financial statements 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 can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in accordance with section 386 of the 2006 Act ; or
-
the financial statements do not accord with those records; or
-
the financial statements do not comply with the accounting requirements under section 396 of the 2006 Act other than any requirement that the financial statements give a 'true and fair' view which is not a matter considered as part of an independent examination; or
-
the financial statements 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 concerns 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 understanding of the financial statements to be reached.
David Pollock FCMA
Chartered Institute of Management Accountants Pollock Accounting Ltd 3 - 4 Sentinel Square London NW4 2EL
25 February 2024
Page 5
Youth Music Centre Statement of Financial Activities
for the year ended 31 July 2023
| Notes Income and endowments from: Donations and legacies 4 Investments 5 Total Expenditure on: Raising funds 6 Other 7 Total Net gains on investments Net expenditure 8 Transfers between funds Net expenditure before other gains/(losses) Other gains and losses Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
Unrestricted funds 2023 £ 72,410 109 |
Restricted funds 2023 £ 15,879 - |
Total funds 2023 £ 88,289 109 |
Total funds 2022 £ 84,248 6 |
|---|---|---|---|---|
| 72,519 - 85,825 |
15,879 - 14,881 |
88,398 - 100,706 |
84,254 450 91,985 |
|
| 85,825 - |
14,881 - |
100,706 - |
92,435 - |
|
| (13,306) - |
998 - |
(12,308) - |
(8,181) - |
|
| (13,306) | 998 | (12,308) | (8,181) | |
| (13,306) 33,709 |
998 17,424 |
(12,308) 51,133 |
(8,181) 59,314 |
|
| 20,403 | 18,422 | 38,825 | 51,133 |
Page 6
Youth Music Centre Summary Income and Expenditure Account
for the year ended 31 July 2023
| Income Interest and investment income Gross income for the year Expenditure Depreciation and charges for impairment of fixed assets Total expenditure for the year Net expenditure before tax for the year Net expenditure for the year |
2023 £ 88,289 109 88,398 100,549 157 100,706 (12,308) (12,308) |
2022 £ 84,248 6 |
|---|---|---|
| 84,254 | ||
| 92,275 160 |
||
| 92,435 | ||
| (8,181) | ||
| (8,181) |
Page 7
Youth Music Centre Balance Sheet
at 31 July 2023
| Company No. 03816808 Notes 2023 £ Fixed assets Tangible assets 10 474 474 Current assets Debtors 11 2,429 Cash at bank and in hand 39,480 41,909 Creditors:Amount falling due within one year 12 (3,558) Net current assets 38,351 Total assets less current liabilities 38,825 Net assets excluding pension asset or liability 38,825 Total net assets 38,825 The funds of the charity Restricted funds 13 Restricted income funds 18,422 18,422 Unrestricted funds 13 General funds 20,403 20,403 Reserves 13 Total funds 38,825 |
2022 £ 483 |
|---|---|
| 483 2,085 52,660 |
|
| 54,745 (4,095) |
|
| 50,650 51,133 |
|
| 51,133 | |
| 51,133 | |
| 17,424 | |
| 17,424 33,709 |
|
| 33,709 | |
| 51,133 |
These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
For the year ended 31 July 2023 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
Approved by the board on 20 February 2024
And signed on its behalf by:
S.C. Warner Trustee
20 February 2024
Page 8
Youth Music Centre Notes to the Accounts
for the year ended 31 July 2023
- 1 Accounting policies
Basis of preparation
The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Change in basis of accounting or to previous accounts
There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.
Fund accounting
-
Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity.
-
Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values.
-
Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.
Income
-
Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity income becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability.
-
Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SoFA. Donations and Voluntary income received by way of grants, donations and gifts is included in the legacies the SoFA when receivable and only when the Charity has unconditional entitlement to the income.
-
Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the donations and gifts gift/donation to which it relates. Donated services These are only included in income (with an equivalent amount in expenditure) and facilities where the benefit to the Charity is reasonably quantifiable, measurable and material.
Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets
Page 9
Youth Music Centre Notes to the Accounts
Expenditure
-
Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT which expenditure cannot be fully recovered, and is reported as part of the expenditure to which it relates.
-
Expenditure on These comprise the costs associated with attracting voluntary income, fundraising raising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activities services in the furtherance of its objects, including the making of grants and governance costs.
-
Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid.
-
Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs.
-
Other expenditure These are support costs not allocated to a particular activity.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Tangible fixed assets and depreciation
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:
Equipment 25% Reducing balance
Trade and other debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
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 three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.
Trade and other creditors
Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
Page 10
Youth Music Centre Notes to the Accounts
Foreign currencies
Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period.
Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred.
All exchange differences are are taken into account in arriving at net income/expenditure.
Pension costs
The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Receipt of donated goods, facilities and services
All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.
2 Company status
The company is a private company limited by guarantee and consequently does not have share capital.
3 Statement of Financial Activities - prior year
| Income and endowments from: Donations and legacies Investments Total Expenditure on: Raising funds Other Total Net income Net income before other gains/(losses) Other gains and losses: Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
Unrestricted funds 2022 £ 63,037 6 63,043 450 70,774 71,224 (8,181) (8,181) (8,181) 41,890 33,709 |
Restricted funds 2022 £ 21,211 - 21,211 - 21,211 21,211 - - - 17,424 17,424 |
Total funds 2022 £ 84,248 6 |
|---|---|---|---|
| 84,254 450 91,985 |
|||
| 92,435 | |||
| (8,181) | |||
| (8,181) | |||
| (8,181) 59,314 |
|||
| 51,133 |
Page 11
Youth Music Centre
Notes to the Accounts
4 Income from donations and legacies
| Tuition fees Bursary funding Donations 5 Income from investments Interest received 6 Expenditure on raising funds Costs of generating voluntary income Tuition fees 7 Other expenditure Fees paid to staff Premises costs Amortisation, depreciation, impairment, profit/loss on disposal of fixed assets General administrative costs Legal and professional costs 8 Net expenditure before transfers This is stated after charging: Depreciation of owned fixed assets |
Unrestricted £ 71,662 748 - 72,410 Unrestricted £ 48,866 13,295 157 21,317 2,190 85,825 |
Restricted £ 15,879 - - 15,879 Unrestricted £ 109 109 Restricted £ 14,881 - - - - 14,881 2023 £ 157 |
Total 2023 £ 87,541 748 - 88,289 Total 2023 £ 109 109 Total 2023 £ - - Total 2023 £ 63,747 13,295 157 21,317 2,190 100,706 |
Total 2022 £ 62,782 21,211 255 |
|---|---|---|---|---|
| 84,248 | ||||
| Total 2022 £ 6 |
||||
| 6 | ||||
| Total 2022 £ 450 |
||||
| 450 | ||||
| Total 2022 £ 52,901 13,094 160 23,910 1,920 |
||||
| 91,985 | ||||
| 2022 £ 160 |
Page 12
Youth Music Centre Notes to the Accounts
| Youth Music Centre Notes to the Accounts |
||
|---|---|---|
| 9 Staff costs Fees paid to staff No employee received emoluments in excess of £60,000. 10 Tangible fixed assets |
2023 63,483 63,483 |
2022 52,901 |
| 52,901 | ||
| Cost or revaluation At 1 August 2022 Additions At 31 July 2023 Depreciation and impairment At 1 August 2022 Depreciation charge for the year At 31 July 2023 Net book values At 31 July 2023 At 31 July 2022 11 Debtors Trade debtors 12 Creditors: amounts falling due within one year Trade creditors Accruals |
2023 £ 2,429 2,429 2023 £ 1,421 2,137 3,558 |
Equipment £ 7,775 148 7,923 7,292 157 7,449 474 483 |
Total £ 7,775 148 |
|---|---|---|---|
| 7,923 | |||
| 7,292 157 |
|||
| 7,449 | |||
| 474 | |||
| 483 | |||
| 2022 £ 2,085 |
|||
| 2,085 | |||
| 2022 £ 1,958 2,137 |
|||
| 4,095 |
Page 13
Youth Music Centre Notes to the Accounts
13 Movement in funds
| At 1 August 2022 Incoming resources (including other gains/losses ) £ Restricted funds: Restricted income funds: Bursaries 17,424 15,879 Total 17,424 15,879 Unrestricted funds: General funds 33,709 72,519 Total funds 51,133 88,398 Purposes and restrictions in relation to the funds: Restricted funds: Bursaries This fund is there to give the charity the ability |
Incoming resources (including other gains/losses ) £ 15,879 15,879 72,519 88,398 |
Resources expended £ (14,881) (14,881) (85,825) (100,706) |
At 31 July 2023 £ 18,422 |
|---|---|---|---|
| 18,422 | |||
| 20,403 | |||
| 38,825 | |||
| to offer assisted places. | |||
14 Analysis of net assets between funds
| Fixed assets Net current assets 15 Reconciliation of net debt Cash and cash equivalents Net debt |
At 1 August 2022 £ |
Unrestricted funds £ 474 38,351 38,825 Cash flows £ |
Total £ 474 38,351 |
|---|---|---|---|
| 38,825 | |||
| At 31 July 2023 £ |
|||
| 52,660 | (13,180) | 39,480 | |
| 52,660 52,660 |
(13,180) (13,180) |
39,480 | |
| 39,480 | |||
| 16 Related party disclosures Controlling party |
The company is limited by guarantee and has no share capital; thus no single party controls the company.
Page 14
Youth Music Centre Detailed Statement of Financial Activities
for the year ended 31 July 2023
| Income and endowments from: Donations and legacies Tuition fees Bursary funding Donations Investments Interest received Total income and endowments Expenditure on: Costs of generating donations and legacies Tuition fees Total of expenditure on raising funds Staff costs Fees paid to staff Staff training Premises costs Rent General administrative costs, including depreciation and amortisation Depreciation of Equipment Bank charges Administrators fees Advertising and sales promotion General insurances Information and publications Software, IT support and related costs Stationery and printing Sundry expenses Telephone, fax and broadband |
Unrestricte d funds 2023 £ 71,662 748 - 72,410 109 109 72,519 - - - 48,602 264 48,866 13,295 13,295 157 60 18,520 - 647 395 806 690 39 160 21,474 |
Restricted funds 2023 £ 15,879 - - 15,879 - - 15,879 - - - 14,881 - 14,881 - - - - - - - - - - - - - |
Total funds 2023 £ 87,541 748 - 88,289 109 109 88,398 - - - 63,483 264 63,747 13,295 13,295 157 60 18,520 - 647 395 806 690 39 160 21,474 |
Total funds 2022 £ 62,782 21,211 255 |
|---|---|---|---|---|
| 84,248 | ||||
| 6 | ||||
| 6 | ||||
| 84,254 450 |
||||
| 450 | ||||
| 450 52,901 - |
||||
| 52,901 | ||||
| 13,094 | ||||
| 13,094 | ||||
| 160 101 21,723 930 - 530 295 271 - 60 |
||||
| 24,070 |
Page 15
Youth Music Centre Detailed Statement of Financial Activities
| Youth Music Centre Detailed Statement of Financial Activities |
||||
|---|---|---|---|---|
| Legal and professional costs Audit/Independent examination fees Total of expenditure of other costs Total expenditure Net gains on investments Net expenditure Net expenditure before other gains/(losses) Other Gains Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
2,190 2,190 85,825 85,825 - (13,306) (13,306) - (13,306) 33,709 20,403 |
- - 14,881 14,881 - 998 998 - 998 17,424 18,422 |
2,190 2,190 100,706 100,706 - (12,308) (12,308) - (12,308) 51,133 38,825 |
1,920 |
| 1,920 | ||||
| 91,985 | ||||
| 92,435 - |
||||
| (8,181) | ||||
| (8,181) - |
||||
| (8,181) | ||||
| 59,314 | ||||
| 51,133 |
Page 16