Charity Registration No. 1090556
Company Registration No. 04202335 (England and Wales)
MUSIC FOR LIFE ACADEMY
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
MUSIC FOR LIFE ACADEMY
LEGAL AND ADMINISTRATIVE INFORMATION
| Directors | Mr R Barnett |
|---|---|
| Ms S Nelson | |
| Mr R Hunter | |
| Secretary | Miss O Meekin |
| Charity number | 1090556 |
| Company number | 04202335 |
| Principal address | Blaris Industrial Estate Unit 2 |
| 24 Altona Road | |
| Lisburn | |
| Antrim | |
| BT27 5QB | |
| Registered office | 59-60 Russell Square |
| London | |
| England | |
| WCIB 4HP | |
| Auditor | GMcG LISBURN |
| Century House | |
| 40 Crescent Business Park | |
| Lisburn | |
| Co Down | |
| BT28 2GN | |
| Bankers | Danske Bank |
| Donegall Square West | |
| Belfast | |
| BT1 6JS | |
| Solicitors | Bishop & Sewell LLP Solicitors |
| 59-60 Russell Square | |
| London | |
| WC1B 4HB |
MUSIC FOR LIFE ACADEMY
CONTENTS
| Page | |
|---|---|
| Director's report | 1 - 5 |
| Independent auditor's report | 6 - 11 |
| Statement of financial activities | 12 |
| Balance sheet | 13 |
| Notes to the financial statements | 14 - 26 |
MUSIC FOR LIFE ACADEMY
DIRECTOR'S REPORT FOR THE YEAR ENDED 31 MARCH 2021
The directors present their report and financial statements for the year ended 31 March 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association , the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016)
Objectives and activities
The charity's objects are :
a) to provide, arrange and pay for the education and training of persons with an emphasis towards musical composition performance and dance as an expression of life and culture;
b) to develop, fund, administer, facilitate, promote, operate and carry on activities and facilities which will provide relief and/or education to persons in needy circumstances; and
c) to pursue in any part of the world other charitable purposes benefiting peoples or communities as the trustees of the charity may determine.
We will do this by:
a) Providing for their long term well being and educational needs to become leading contributors to the 'New Africa';
b) Instilling ethical and moral principles through teaching and leading example; and
c) Serving as an advocate of the beauty and dignity of the African child around the world.
We have supported our objectives by:
a) Supporting our Field programmes in South Africa, Kenya, Rwanda and Uganda through Direct Grants and field expenses paid directly by the UK Office. The various African Offices provide monthly budgets and this is funded by our restricted sponsorship and appeal revenue and any surplus from our concert revenue from the African Children's Choir tours.
b) Supporting our Choir programme which meet the costs of Choir selection and training in Africa, travel costs, medical, educational and living costs for the Choir children touring in the UK and Europe. c) Supporting Choir Chaperones through their BPS (Building Personal Support) Funds. d) Providing Office Support Costs of our Choir and African Operations.
The directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
In 2020-2021, Music for Life Academy continued to provide educational programmes for many hundreds of children in Africa. Thousands of children receive assistance through sponsorship programmes in Kenya, Rwanda, Uganda and South Africa.
The directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
- 1 -
MUSIC FOR LIFE ACADEMY
DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Choir/other activities
-
Covid-19 affected all areas of our work.
-
IET/ Board in-person meetings cancelled immediately with the touring choir concerts postponed/ cancelled.
-
Borders closed quickly in Uganda, Kenya, South Africa, Canada and USA followed by UK.
-
Registered for furlough scheme and placed booking and detail staff on the scheme. Remaining staff placed on flexible furlough.
-
Email messages sent to our supporters (not for funds) but as a show of unity during this global pandemic.
-
Launched Give19 campaign. Major donors were individually approached for funding.
-
May 2020 we appealed by email for funding with a significant donation from a major donor in the USA, this was followed up by a post appeal in September followed by our regular end-of-year campaign.
-
UK tour planned for Winter 2020 cancelled.
-
UBUNTU tour to Australia Spring 2021 cancelled.
-
December 2020 began the interview process with EPIC. E PIC wrote one of our appeal letters, which was highly successful. January 2021 - hired EPIC to help with branding, social media, website development, communication with donors, marketing, and fundraising .
-
February 2021 - Launched more consistent email communication with donors, starting bi-weekly and moving to weekly. Some update emails and some financial appeals. Improved look and engagement on social media. Posting every day with inspirational, foundational, and programme posts. Highlighting African leadership.
-
Spring of 2021- Website development begins behind the scenes for a July 2021 launch of a new website and branding .
-
Choir 51 stayed at the Raleigh base for six months before returning home. Discipleship programme with children developed and launched. All the children were baptised and commissioned as witnesses in their communities. Most of the living expenses at the base were donated including food and supplies.
-
They did three local Drive-In Concerts. Recorded our full concert, mini-concert, and school workshops. These recordings are now being used to sell on our website to churches and individuals .
-
Performed virtually on UNITE with Tim Shriver .
-
Performed virtually at SING conference hosted by Keith and Kristen Getty .
-
First-ever virtual gala (UNGALA) combining NYC and Austin attendees and anyone else who could join virtually .
-
2 -
MUSIC FOR LIFE ACADEMY
DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Field Activities:
East Africa
Staff called the students at home regularly to check on their wellbeing and encourage them. Funds were sent via mobiles to enable the students and their families to buy food. Mentors also were encouraged to continue reaching out to their mentees via WhatsApp and phone calls. As the months went by in-country travel eased and staff visited the students with more provisions and school materials.
Teachers at Empower International Academy were able to use Whats App to provide children with some school work.
African Children’s Choir Primary School teachers were able to visit students in their homes once lockdown restrictions lifted and give some one on one support.
Schools in Kenya and Uganda were able to open for certain grades, namely examination classes towards the end of 2020.
South Africa
Staff called individual students in their homes to check on their wellbeing. WhatsApp group chat began to encourage the students and be a support for them particularly during the initial lockdown. Funds were sent to students via mobile money to purchase food for families as travel restrictions were in place. Slowly schools reopened with in-person learning taking place in secondary schools and better systems for on-line learning at the universities.
Two students completed their university courses during the year.
Financial review
The charity's trading subsidiary, Music for Life Records Limited reported a turnover of £4,333 (2020 - £6,499).
The results for the year are set out on 12 to 26. The charity returned net incoming resources of £14,590 (2020 - net outgoing resources of £30,589) of which there were net incoming unrestricted resources of £29,931 (2020 - net outgoing resources of £28,336) and net outgoing restricted resources of £15,341 (2020 - net outgoing restricted resources of £2,253).
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The directors considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The directors have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The directors has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The charity has the following plans for future periods:
-
Continued development of Empower International Academy. Official Dedication of EIA on calendar for July 2020 postponed - date to be announced.
-
ACC tour in UK postponed from October 2020 to 2021/22
-
Continue to meet needs of the children and students within the guidelines permitted by the governments of Uganda, Kenya and South Africa.
-
To provide counselling, mentorship, food parcels and some hygiene and educational materials
-
Monitoring of situation to determine when schools/programmes might resume.
-
3 -
MUSIC FOR LIFE ACADEMY
DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Structure, governance and management
The charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association.
The directors who served during the year and up to the date of signature of the financial statements were: Mr R Barnett Ms S Nelson Mr R Hunter
The directors are appointed at the annual general meeting of the company's members and retire by rotation. The directors may at any time co-opt any person as an additional director until the next annual general meeting.
Day-to-day management decisions are made by the International Executive Team. Being an organisation with a presence in the UK, Canada, USA, Uganda, Kenya, Sudan and South Africa, the team is made up of a leadership team overseeing the Choir, African and Administrative operations. This team of people meets weekly by conference call or Skype and also face-to-face annually or biannually for more in-depth planning and strategy. This same group prepares policies and procedures that are used throughout the organisation and present them to the Board for approval before implementation. The trustees are responsible for approving general budgets, approving policies and procedures, major purchases and major new directions in the organisation.
Related parties of the charity include its trustees and a number of other companies under common control with Music for Life Academy: Music for Life Institute, Music for Life Records Limited and Friends in the West International.
Statement of director's responsibilities
The directors, are responsible for preparing the Director's Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
The auditor, GMcG LISBURN, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
- 4 -
MUSIC FOR LIFE ACADEMY
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
Disclosure of information to auditor
Each of the directors has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.
This report has been prepared in accordance with the provision applicable to companies entitled to the small companies exemption.
The director's r eport was approved by the Board of Directors.
Mr R Hunter
Director
Dated: 6 December 2021
- 5 -
MUSIC FOR LIFE ACADEMY
INDEPENDENT AUDITOR'S REPORT TO THE DIRECTORS OF MUSIC FOR LIFE ACADEMY
Opinion
We have audited the financial statements of Music for Life Academy (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) .
In our opinion, the financial statements:
-
give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 and of its incoming resources and application of resources, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 director's 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 charity’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 directors with respect to going concern are described in the relevant sections of this report.
- 6 -
MUSIC FOR LIFE ACADEMY
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF MUSIC FOR LIFE ACADEMY
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
-
the information given in the director's r eport, prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the d irectors’ r epor t has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the director's r eport.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of trustees' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies ' exemptions in preparing the director's r eport and from the requirement to prepare a s trategic r eport.
-
7 -
MUSIC FOR LIFE ACADEMY
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF MUSIC FOR LIFE ACADEMY
Responsibilities of directors
As explained more fully in the s tatement of director's r esponsibilities, the directors 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 directors 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 directors are responsible for assessing the charity’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 directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 an auditor's report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .
- 8 -
MUSIC FOR LIFE ACADEMY
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF MUSIC FOR LIFE ACADEMY
Extent to which the audit was considered capable of detecting irregularites, including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following:
-
The nature of the industry and sector, control environment and business performance, including the company’s remuneration policies for directors, bonus levels and performance targets, if any;
-
Results of our enquiries of management about their own identification and assessment of the risks of irregularities;
-
Any matters we identified having obtained and reviewed the company’s documentation of their policies and procedures relating to:
-
Identifying, evaluating and complying with laws and regulations and whether they were aware of any instance of non-compliance;
-
Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
-
The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
-
The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
- 9 -
MUSIC FOR LIFE ACADEMY
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF MUSIC FOR LIFE ACADEMY
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
-
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
-
Enquiring of management concerning actual and potential litigation and claims;
-
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
-
Reading minutes of meetings of those charged with governance and reviewing correspondence with tax authorities; and
-
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In addition, as with any audit, there remains a higher risk of nondetection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
- 10 -
MUSIC FOR LIFE ACADEMY
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF MUSIC FOR LIFE ACADEMY
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 Stephen Houston FCA (Senior Statutory Auditor) for and on behalf of GMcG LISBURN
6 December 2021
Chartered Accountants Statutory Auditor
Century House 40 Crescent Business Park Lisburn Co Down BT28 2GN
- 11 -
MUSIC FOR LIFE ACADEMY
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021
| Unrestricted Restricted funds funds 2021 2021 Notes £ £ Income from: Charitable activities 3 111,858 99,566 Investments 4 2,347 - Total income 114,205 99,566 Expenditure on: Charitable activities 5 58,774 140,407 Net incoming/ (outgoing) resources before transfers 55,431 (40,841) Gross transfers between funds 11 (25,500) 25,500 Net income/(expenditure) for the year/ Net movement in funds 29,931 (15,341) Fund balances at 1 April 2020 173,956 15,709 Fund balances at 31 March 2021 203,887 368 |
TotalUnrestricted Restricted funds funds 2021 2020 2020 £ £ £ 211,424 96,442 99,365 2,347 3,926 - 213,771 100,368 99,365 199,181 55,063 175,259 14,590 45,305 (75,894) - (73,641) 73,641 14,590 (28,336) (2,253) 189,665 202,292 17,962 204,255 173,956 15,709 |
Total 2020 £ 195,807 3,926 199,733 230,322 (30,589) - (30,589) 220,254 189,665 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 12 -
MUSIC FOR LIFE ACADEMY
BALANCE SHEET
AS AT 31 MARCH 2021
| Notes Fixed assets Tangible assets 12 Investments 13 Current assets Debtors 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 16 Net assets Income funds Restricted funds 18 Unrestricted funds |
2021 £ 58,095 226,653 284,748 (37,091) |
£ 2,430 1 2,431 247,657 250,088 (45,833) 204,255 368 203,887 204,255 |
2020 £ 37,193 176,804 213,997 (27,192) |
£ 2,859 1 2,860 186,805 189,665 - 189,665 15,709 173,956 189,665 |
|---|---|---|---|---|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Directors and authorised for issue on 6 December 2021 are signed on its behalf by:
Mr R Hunter
Trustee
Company Registration No. 04202335
- 13 -
MUSIC FOR LIFE ACADEMY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1 Accounting policies
Charity information
Music for Life Academy is a private company limited by guarantee incorporated in England and Wales. The registered office is 59-60 Russell Square, London, WCIB 4HP, England. The business address is Blaris Industrial Estate, Unit 2, 24 Altona Road, Lisburn, Co Antrim, BT27 5QB.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
These financial statement contain information about the individual charitable company, Music for Life Academy only. Music for Life Academy and its subsidiary company, Music for Life Records Limited, comprise a small group and as such Music for Life Academy is exempt from preparing consolidated accounts under Company legislation. The directors have taken advantage of the provisions with SORP FRS 102 and UK Generally Accepted Accounting Practice not to prepare consolidated accounts on the basis that the only subsidiary undertaking of the charitable company is not considered to be material for the purpose of the financial statements giving a true and fair view.
1.2 Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the directors in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
- 14 -
MUSIC FOR LIFE ACADEMY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
1 Accounting policies (Continued)
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.5 Expenditure
Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transaction or events.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can allocated directly to such activities and those costs of an indirect nature necessary to support them.
Support and governance costs includes those costs associated with meeting the constitutional and statutory requirement of the charity and include the audit fees and any other fees linked to the strategic management of the charity. Support and governance costs have been allocated to charitable activities based on a percentage of restricted income.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computer equipment 33% straight line Fixtures and fittings 15% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
1.7 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
- 15 -
MUSIC FOR LIFE ACADEMY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
1 Accounting policies (Continued)
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
1.10 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12 Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in net income/(expenditure for the period.
- 16 -
MUSIC FOR LIFE ACADEMY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
Fixed Assets
The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of assets ad estimates of residual values. The trustees regularly review these assets lives and change them as necessary to reflect the current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation charges for the period. Detail of the useful lives is included in the accounting policies.
Restricted and unrestricted funds
Judgements are made in relation to allocation of income and expenditure to restricted and unrestricted funds. The trustees consider it appropriate to allocate these funds based on donations received.
- 17 -
MUSIC FOR LIFE ACADEMY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
3 Charitable activities
| Field Programmes 2021 £ Donations within charitable activites 189,511 CJRS grant income 14,982 204,493 Analysis by fund Unrestricted funds 107,480 Restricted funds 97,013 204,493 |
BPS GB Appeals & General 2021 2021 £ £ 1,038 300 78 5,515 1,116 5,815 1,086 3,292 30 2,523 1,116 5,815 |
Total 2021 Field Programmes 2020 £ £ 190,849 191,003 20,575 - 211,424 191,003 111,858 94,623 99,566 96,380 211,424 191,003 |
BPS GB Appeals & General 2020 2020 £ £ 3,944 300 - 560 3,944 860 959 860 2,985 - 3,944 860 |
Total 2020 £ 195,247 560 195,807 96,442 99,365 195,807 |
|---|---|---|---|---|
- 18 -
MUSIC FOR LIFE ACADEMY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
4 Investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2021 | 2020 | |
| £ | £ | |
| Gift Aid - Music for Life Records Limited | 2,154 | 3,577 |
| Interest receivable | 193 | 349 |
| 2,347 | 3,926 |
- 19 -
MUSIC FOR LIFE ACADEMY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
5 Charitable activities
| Field Programmes 2021 £ Staff costs 102,267 Depreciation and impairment 425 Direct Costs 54,306 156,998 Share of support costs (see note 7) 23,400 Share of governance costs (see note 7) 6,180 186,578 Analysis by fund Unrestricted funds 48,919 Restricted funds 137,659 186,578 |
BPS GB Appeals & General 2021 2021 £ £ 192 7,254 4 - - 303 196 7,557 236 4,552 62 - 494 12,109 494 9,361 - 2,748 494 12,109 |
Total 2021 Field Programmes 2020 £ £ 109,713 102,631 429 524 54,609 83,810 164,751 186,965 28,188 31,093 6,242 6,148 199,181 224,206 58,774 54,511 140,407 169,695 199,181 224,206 |
BPS GB Appeals & General 2020 2020 £ £ 171 - 5 - 5,243 321 5,419 321 314 - 62 - 5,795 321 552 - 5,243 321 5,795 321 |
Total 2020 £ 102,802 529 89,374 192,705 31,407 6,210 230,322 55,063 175,259 230,322 |
|---|---|---|---|---|
- 20 -
MUSIC FOR LIFE ACADEMY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
6 Description of charitable activities
Field Programmes
The funding of various programmes in South Africa, Kenya and Uganda.
General sponsorship
Supporting general choir activities.
BPS
Supporting Choir Chaperones.
GB Appeals & General
Providing office support costs for choir and African operations.
Choir & Tour
Supporting the choir programme which includes choir selection and training in Africa, travel costs, medical, educational and living costs for the choir children touring in the UK and Europe.
7 Support costs
| Support costs Governance costs £ £ Rent 5,040 - Insurance 776 - Light and Heat 1,112 - Repairs 813 - Postage and stationery 11,409 - Telephone and IT 4,695 - Motor Expenses 370 - Travelling Expenses 51 - Professional services - - Sundry expenses 1,622 - Subscriptions 955 - Bank Charges 1,345 - Audit fees - 5,400 Legal and professional - 842 28,188 6,242 Analysed between Charitable activities 28,188 6,242 |
2021 Support costs Governance costs £ £ £ 5,040 5,040 - 776 1,360 - 1,112 1,448 - 813 340 - 11,409 9,994 - 4,695 5,106 - 370 714 - 51 2,404 - - 816 - 1,622 1,600 - 955 1,394 - 1,345 1,191 - 5,400 - 5,400 842 - 810 34,430 31,407 6,210 34,430 31,407 6,210 |
2020 £ 5,040 1,360 1,448 340 9,994 5,106 714 2,404 816 1,600 1,394 1,191 5,400 810 37,617 37,617 |
|---|---|---|
Governance costs includes payments to the auditors of £ 5,400 (2020- £ 5,400 ) for audit fees.
8 Directors
None of the directors (or any persons connected with them) received any remuneration or benefits from the charity during the year.
- 21 -
MUSIC FOR LIFE ACADEMY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
9 Employees
Number of employees
The average monthly number of employees during the year was:
| Administration Sponsorship Employment costs Wages and salaries Social security costs Other pension costs |
2021 Number 3 1 4 2021 £ 101,410 4,731 3,572 109,713 |
2020 Number 4 1 5 2020 £ 94,303 5,021 3,478 102,802 |
|---|---|---|
The total employment benefits including employer pension contributions of the key management personnel were £49,881 (2020 - £48,397).
There were no employees whose annual remuneration was £60,000 or more.
10 Taxation
As a charity the company is not liable to corporation tax.
11 Transfers
Transfers made from unrestricted fund to the restricted funds were to cover resources expended in excess of funds received in relation to some projects.
Transfers made from restricted funds to unrestricted funds are to cover costs incurred in previous years out of unrestricted funds which actually related to restricted funds.
- 22 -
MUSIC FOR LIFE ACADEMY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
| 12 | Tangible fixed assets | |||
|---|---|---|---|---|
| Computer | Fixtures |
Total | ||
| equipment | and fittings |
|||
| £ | £ |
£ | ||
| Cost | ||||
| At 1 April 2020 | 3,731 | 15,866 |
19,597 | |
| At 31 March 2021 | 3,731 | 15,866 |
19,597 | |
| Depreciation and impairment | ||||
| At 1 April 2020 | 3,731 | 13,007 |
16,738 | |
| Depreciation charged in the year | - | 429 |
429 | |
| At 31 March 2021 | 3,731 | 13,436 |
17,167 | |
| Carrying amount | ||||
| At 31 March 2021 | - | 2,430 |
2,430 | |
| At 31 March 2020 | - | 2,859 |
2,859 | |
| 13 | Fixed asset investments | |||
| Other | ||||
| investments | ||||
| Cost or valuation | ||||
| At 1 April 2020 & 31 March 2021 | 1 | |||
| Carrying amount | ||||
| At 31 March 2021 | 1 | |||
| At 31 March 2020 | 1 | |||
| 2021 | 2020 | |||
| Other investments comprise: | Notes | £ | £ | |
| Investments in subsidiaries | 21 | 1 | 1 |
- 23 -
MUSIC FOR LIFE ACADEMY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
| 14 Debtors Amounts falling due within one year: Amounts owed by subsidiary undertakings Other debtors Prepayments and accrued income 15 Creditors: amounts falling due within one year Notes Bank loans 17 Other taxation and social security Trade creditors Other creditors Accruals and deferred income 16 Creditors: amounts falling due after more than one year Notes Bank loans 17 17 Loans and overdrafts Bank loans Payable within one year Payable after one year |
2021 £ 5,914 51,481 700 58,095 2021 £ 4,167 2,377 9,131 12,898 8,518 37,091 2021 £ 45,833 2021 £ 50,000 4,167 45,833 |
2020 £ 7,631 28,862 700 37,193 2020 £ - 1,932 8,384 8,571 8,305 27,192 2020 £ - 2020 £ - - - |
|---|---|---|
- 24 -
MUSIC FOR LIFE ACADEMY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
18 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
| Balance at 1 April 2019 £ Field Programmes 7,911 BPS 9,169 GB Appeals and General 882 17,962 |
Movement in funds Incoming resources Resources expended £ £ 96,380 (169,696) 2,985 (5,242) - (321) 99,365 (175,259) |
Transfers Balance at 1 April 2020 £ £ 73,641 8,236 - 6,912 - 561 73,641 15,709 |
Movement in funds Incoming resources Resources expended £ £ 97,013 (137,659) 30 - 2,523 (2,748) 99,566 (140,407) |
Transfers Balance at 31 March 2021 £ £ 32,442 32 (6,942) - - 336 25,500 368 |
|---|---|---|---|---|
The above projects represent donations received from individuals who have specified that the funds be used for a specific project. Note 6 details description of the various charitable activities undertaken.
- 25 -
MUSIC FOR LIFE ACADEMY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
| 19 Analysis of net assets between funds Unrestricted Restricted 2021 2021 £ £ Fund balances at 31 March 2021 are represented by: Tangible assets 2,430 - Investments 1 - Current assets/ (liabilities) 247,289 368 Long term liabilities (45,833) - 203,887 368 |
TotalUnrestricted Restricted 2021 2020 2020 £ £ £ 2,430 2,859 - 1 1 - 247,657 171,096 15,709 (45,833) - - 204,255 173,956 15,709 |
Total 2020 £ 2,859 1 186,805 - 189,665 |
|---|---|---|
20 Related party transactions
Subsidiary
During the year the charity recognised donations of £2,154 (2020 - £3,577) from its subsidiary, Music for Life Records Limited. At the balance sheet date an amount of £5,914 (2020 - £7,631) was due from Music for Life Records Limited.
Other charities under common control
The following charities are related to Music for Life Academy by virtue of common control. Transactions during the year and balances due to or from them are as follows:
Friends in the West International (FITWI)
As at the balance sheet date an amount of £24,757 (2020 - £22,801) was due from FITWI.
21 Subsidiaries
Details of the charity's subsidiaries at 31 March 2021 are as follows:
| Name of undertaking | Registered | Nature of business | Class of | % Held |
|---|---|---|---|---|
| office | shares held | Direct Indirect | ||
| Music for Life Records | England | Retail of African Children's | Ordinary | 100.00 |
| Limited | Choir merchandise |
The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:
| Name of undertaking | Profit/(Loss) | Capital and |
|---|---|---|
| Reserves | ||
| £ | £ | |
| Music for Life Records | ||
| Limited | (1) | 1 |
- 26 -