MUSIC FOR LIFE ACADEMY DIRECTOR'S REPORT FOR THE YEAR ENDED 31 MARCH 2024 The directors present their annual report and financial statements forthe year ended 31 March 2024. The financial statements have been prepared in accordance with the acrnunting policies sel out in note 1 to the financial statements and comply with the charity's Memorandum and Artides of Association, the Companies Act 2006 and 'Accounting and Reporting by Charities.. Statement of Recommended Practice appli(%ble lo charities preparing their accounts in accordance with the Finanual Reporting Standard applicable in the UK and Republic of Ireland {FRS 102). (as amended for accounting periods commencing from 1 January 2019) Objectives and activities The charily's objects are.. a) to provide, arrange and pay for the education and training of persons with an emphasis towards musical composition perfonnance and dance as an expression of lrfe and cutture.. b) to develop, fund, administer, facilitate, promote, operate and carry on actiwties and facilities which will provide relief andlor education to persons in needy circumstances- and ) to puisue in any part of the wodd other charitable purposes benefiting peoples or communities as the trustees of the charity m3y determine. We will do this by-. a) Providing for their long term well being and educational needs to be(xJme leading contributors to the 'New Africa.; b) Instilling ethical and moral principles Ihrough teaching and leading example., and c) SeNing as an advocate of the beauty and dignity of the Afncan thild around the world. We have supported our objectives by.. a) Supporting our Field programmes in SoLrth Africa, Kenya, Rwanda and Uganda through Direct Grants and field expenses paid directly by the UK Offi￿. The various African Offi￿S 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. bl Supporting our Choir programmc which meet the costs of Choir seleGlion and training in Africa, travel costs, medical, educational and living costs for the Choir children touring in the UK and Europe. cl Supporting Choir Chaperones through their BPS (Building Personal Support) Funds. dl Providing Office Support Cosls 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. MUSIC FOR LIFE ACADEMY DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Achievements and perfomiance In 2023-2024, Music for Life Academy continued to promde educational programmes for many hundreds of children in AfriGa. Thousands of children receive assistan￿ through sponsorship programmes in Kenya, Uganda and South Africa. CHOIR ACTIVITIES 1. With tentative, short lours taking place in the USA in 2023 rt was decided to plan a tour to the UK wilh Ihe hope for kick slarting our financial projeclory and increasing the number of sponsors. It wasn't possible to bring out a children's choir. but we felt an older group of former choir members could be successfijl as had been proven previously with tours to Australia. We refer to these groups as Ubuntu. As 1984 was the year our work was founded we have branded concerts during this period as the '401h Anniversary Concert Tourf. 3. Choir Training at our African Children's Choir Primary School in Uganda continues with sludents preparing for tours in Canada and the USA. 4. Annual galas in New York and Austin continue to maintain momentum. 5. Fundraising efforts included regular social media campaigns as well as physical mailings and funding from music royalties. AFRICA FIELD ACTIVITIES South Africa 1. At this time there are eleven students in our programme, with ten of them completing university or college courses. We are in regular conlact with all these students providing food assistance, transport and guidance regarding university applications. Cvs and leadership opportunities. 2. In April 2024 a further two students gradualed Iheir studies in Tourism Management and Secondary Educalion. We are pleased to report all these sludents are in employment. 3. There is a property we are actively trying to sell which will help with ongoing expenses. Kenya 1. African Children's Choir Kindergartens continued to operate well with new thildren enrolled each sthool year. There are three kindergartens.. Toi School, Kicoshep School and Oloserian School with sludents graduating in November. 2. Music for Life Centres continue to thrive with 80 plus children joining at Toi School, 65 children joining at Kicoshep School. Our African Children's Choir college students lead this programme. 3. Former Kenyan alumni are now fully trained in leadership and lifestyle training gained over time spent at Outdoor Odyssey, Pennsylvania. USA. This programme has now been adapted for Music for Life studenls and is known as African Odyssey. These founding students are now sharing their knowledge with other Kenyan alumni so this programme can be expanded. MUSIC FOR LIFE ACADEMY DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Uganda 1. African Children's Choir Primary School was able to open fully with an intake of 20 students in P2. 2. Construction for Phase 2 al Empower Intemational Academy began January 2023. 3. Music for Life Centres reopened in five partner schools. The pupils in the centres receive Bible lessons, lrfe skills, music, games, and food. 4. Mentorship programme continues to flourish with Afncan Children's Choir university students supporting our secondary level students through school and home visits. Financial review The ¢h8rity's trading subsidiary, Music for Life Records Limited reported a tumover of £7,151 (2023- £814). The results for the year are set out on 12 to 26. The charity retumed net outgoing resources of £170,620 (2023 - net incoming resources of £ 340,968) of which there were net outgoing unrestricted resourcEs of £170,620 {2023 - net incoming unrestricted resources of £340.968). Included in the prior yeals net income of £340,968 is the transfer of assets from Friends in the West Inlemational, a related charity of £376,900 which oCcU￿ed on 31 March 2023. It is the policy of the c.harity that unrestricted funds which have not been designated for a spectfic use should be maintained al a level equivalent to be￿een three and six month's expendituie. The directors CA)nsiders that reserves al this level will ensure that, in the evenl of a signtficant drop in funding, they will be able to continue the charity's current activities while consideration is given lo ways in which addrtional funds may be raised. This level of reseNes 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. Plans for future periods The charity has the following plans for future periods= Completion of Phase 2 building at Empower Inlemational Academy, due to complete summer 2024. The firsi S4 graduating dass from Empower Intemational Academy. due November 2024. 3. Continualion of replacing and adding to the Music for Lrfe Academy Board of Directors. Planning for Ubuntu UK tour. Structure, govemance and management The charity is a company limited by guarantee and is govemed by ils Memorandum and Artides of Association. The directors who setved during the year and up to the date of signature of the financial statements were: Mr R Bamett {Resigned 25 March 2024) Ms S Nelson Mr R Hunter MrA Palmer (Appointed 25 March 2024) The directors are appointed at the annual general meeting of the company's members and retire by rotalion. The directors may at any lime c(Fopt any person as an additional director unlil ihe next annual general meeting. MUSIC FOR LIFE ACADEMY DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Day-lo-day management decisions are made by the Intemational 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 pro￿dureS that are used throughout the organisation and presenl them to the Board for approval before implementation. The truslees are responsible for approving general budgets, appromng policies and pr0￿dUreS, major purchases and major new directions in the organisation. Related parties of the charity indude rls trustees and a number of other companies under common control with Music for Life AGademy.' Music for Life Institute. Music for Life RecA)rds Limited. Statement of directorfs responsibilities The directors. are responsible for preparing the Direclorfs Report and the finan(xal statements in accordan￿ with applicable law and United Kingdom Accounting Standards (United lfjngdom Generally AC￿pted Accounting Practi￿}. Company Law requires the directors to prepare financial statements for each financial year which give a true and fair view of the slate of affairs of the charity and of Ihe incoming reSoUr￿S and application of resources, including the income and expenditure. ofthe charitable company for that year. In preparing these financial statements. the directors are required to: select suitable accounting policies and then apply them consistently- obSe￿e the methods and principles in the Charities SORP 2019 (FRS 102)- 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 financtal statements. and prepare the financial statements on the going con￿rn basis unless it is inappropriate lo 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 lo ensure that the financial statements comply wilh 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 I￿egularitIes. Auditor In accordance with the company's articles. a resolution proposing that GMCG LISBURN be reappointed as auditor of the company will be pul at a General Meeting. MUSIC FOR LIFE ACADEMY DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Disclosure of infomiation to auditor Each of the directors has confimied that there is no infomation of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confimied that they have laken appropriale steps to identify such relevant information and to establish that the auditor is aware of such infomiation. This report has been prepared in accordance with the prowsion applicable to companies entitled to the small companies exemption. The directorfs report was approved by the Board of Directors. Mr R Hunter Director Charity registration number 1090556 Company registration number 04202335 (England and Wales) MUSIC FOR LIFE ACADEMY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 MUSIC FOR LIFE ACADEMY LEGALAND ADMINISTRATIVE INFORMATION Directors Ms S Nelson Mr R Hunter Mr A Palmer (Appoinled 25 March 2024) Secretsry 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 BT28 2GN Bankers Danske Bank Donegall Square West Belfast BT16JS Solicitors Bishop & Sewell LLP Solicitors 59-60 Russell Square London WC1B 4HB MUSIC FOR LIFE ACADEMY CONTENTS Page Directors report Independent auditor's report 6-11 Statement of finanaal activities 12 Statement of financial position 13 Notes to the financial statements 14-26 MUSIC FOR LIFE ACADEMY DIRECTOR'S REPORT FOR THE YEAR ENDED 31 MARCH 2024 The directors present their annual report and financial statements for the year ended 31 March 2024. 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 'Accounling and Reporting by Charities.. Slalement of Recomrrended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" las amended for accounting periods corrmencing from 1 January 2019) 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) lo develop, fund, administer, facilitate, promote, operate and carry on activities and facilities which will provide relief andlor education lo persons in needy circumstances.. and cl to pursue in any part of the world other charitable purposes benefiting peoples or communities as the Irustees 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 Ihe 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 Ihe African Children's Choir tours. bl 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. cl 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 harity should undertake. MUSIC FOR LIFE ACADEMY DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Achievements and performance In 2023-2024, 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, Uganda and South Africa. CHOIR ACTIVITIES 1. Wrth tentative, short tours taking place in the USA in 2023 it was decided to plan a tour to the UK with the hope for kick starting our financial projectory and increasing the number of sponsors. It wasn't possible to bring out a children's choir, but we felt an older graup of former choir members could be successfijl as had been proven previously with tours to Australia. We refer to these groups as Ubuntu. As 1984 was the year our worf( was founded we have branded concerts during this period as the '40th Anniversary ConcertTourf. 3. Choir Training at our African Children's Choir Primary School in Uganda continues with studenls preparing for tours in Canada and the USA. 4. Annual galas in New York and Austin continue to maintain momentum. 5. Fundraising efforts included regular social media campaigns as well as physical mailings and funding from music royalties. AFRICA FIELD ACTIVITIES South Africa 1. At this time there are eleven students in our programme, with ten of them completing university or college courses. We are in regular contact with all these students providing food assistance, transport and guidance regarding university applications, Cvs and leadership opportunities. 2. In April 2024 a further two sludents graduated their studies in Tourism Management and Secondary Education. We are pleased to report all these students are in employment. 3. There is a propety we are actively trying to sell which will help with ongoing expenses. Kenya 1. African Children's Choir Kindergartens continued to operate well with new children enrolled each school year. There are three kindergartens.. Toi School, Kicoshep School and Oloserian School with students graduating in November. 2. Music for Life Centres continue to thrive with 80 plus children joining at Toi School, 65 children joining at Kicoshep School. OurAfrican Children's Choir college students lead this programme. 3. Former Kenyan alumni are now fully trained in leadership and lifestyle training gained over time spent at Outdoor Odyssey, Pennsylvania, USA. This programme has now been adapted for Music for Life students and is known as African Odyssey. These founding students are now sharing their knowledge with other Kenyan alumni so this programme can be expanded. MUSIC FOR LIFE ACADEMY DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Uganda 1. AfriGan Children's Choir Primary School was able lo open fully with an intake of 20 students in P2. 2. Construction for Phase 2 at Empower International Academy began January 2023. 3. Music for Life Centres reopened in five partner schools. The pupils in the centres receive Bible lessons. life skills, music, games, and food. 4. Mentorship programme continues to flourish with African Children's Choir university students supporting our secondary level students through school and home visits. Financial review The charity's trading subsidiary, Music for Life ReGords Limited reported a turnover of £7,151 (2023 - £814). The results for the year are set oul on 12 to 26. The charity returned net oulgoing resources of £170,620 (2023 - net incoming resources of £ 340,968) of which there were net outgoing unrestricted resources of £170,620 (2023 - net incoming unreslricted resources of £340,968). Included in the prior yearfs nel income of £340,968 is the transfer of assets from Friends in the West International, a related charity of £376,900 which occurred on 31 March 2023. 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 lo 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 consideralion 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 majar risks. Plans for future periods The charity has the following plans for future periods.. Completion of Phase 2 building at Empower International Academy, due to complete summer 2024. 2. The firsl S4 graduating class from Empower Inlernalional Academy, due November 2024. 3. Continuation of replacing and adding to the Music for Life Academy Board of Directors. 4. Planning for Ubuntu UK tour. Structure, governance and management The charity is a company limited by guarantee and is governed by ils Memorandum and Articles of Association. The directors who served during the year and up io the date of signature of the finanaal statements were.. Mr R Barnett (Resigned 25 March 2024) Ms S Nelson Mr R Hunter MrA Palmer (Appointed 25 March 2024) 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. MUSIC FOR LIFE ACADEMY DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 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 Ihroughout the organisation and present them to the Board for approval before implementation. The trustees are responsible for approving general budgets. appromng policies and procedures, rnajor 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. statement of director's responsibilities The directors, are responsible for preparing the Directols Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Pradice). Company Law requires the directors to prepare financial slatements 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 thal 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 2019 (FRS 102)., 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 finanrial statements. and prepare the finanaal statements on the going concem basis unless it is inappropriate to presume that the charily 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 thal the financial statements comply with the Companies Act 2006. They are also responsible for safegLJarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor In accordance with the company's articles, a resolution proposing that GMCG LISBURN be reappointed as auditor ofthe company will be put at a General Meeting. MUSIC FOR LIFE ACADEMY DIRECTOR'S REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Disclosure of infomiation to auditor Each of the directors has confimed ihat 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 infomiation 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 report was approved by the Board of Directors. Mr R Hunler Director Date-. MUSIC FOR LIFE ACADEMY INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MUSIC FOR LIFE ACADEMY Opinion We have audited the financial statements of Music for Lrfe Academy (the 'charity'l for the year ended 31 March 2024 which comprise the statement of finanoial activities, the statement of financial position and 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practi￿). In our opinion, the fnancial statements= give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting practi￿., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Intemation31 Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditoffs responsibilities for the audit of the financial statements section of our report. We are independent of Ihe 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 concem In auditing the financial statements, we have concluded that the directols use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubl on the charily's ability to continue as a going concem 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 concem are described in the relevant sections of this report. MUSIC FOR LIFE ACADEMY INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF MUSIC FOR LIFE ACADEMY Other information The other information comprises the information included in the annual report other Ihan 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 statemenls does not cover the other information and, except to the extent othetwise explicitly staled 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 misslatements, we are required to determine whether Ihis gives rise to a material misslalemenl 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 direclorfs report, prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial slalements., and the directors, report 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 Ljnderslanding of the charity and its enmronmenl obtained in the course of Ihe audit, we have not identified material misslalernents in the directors, report included within the director's report. 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 kepi, or relums adequate for our audit have not been received from branches not wsiled by us., or the financial statements are not in agreement with the accounting records and relurns., or certain disclosures of Irustees, remuneratlDn 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 Ihe small companies, exemptions in preparing the directorfs report and from the requirement to prepare a strategic report. MUSIC FOR LIFE ACADEMY INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE MEMBERS OF MUSIC FOR LIFE ACADEMY Responsibilities of directo As explained more fully in the statement of directo￿$ responsibilities, the direclors are responsible for the preparation of the financial slalements and for being satisfied that they give a true and fair view, and for such internal control as the directors detemine is necessary lo 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 concem, 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. Auditorfs 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 conducled in accordan with ISAS (UK) will always detect a material misslatement when it exists. Misslatements can arise from fraud or error and are considered material rf, individually or in the aggregate, they could reasonably be expected to intluen the economic decisions of users taken on the basis of these financial stalements. 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 irregularilies, including fraud. is detailed below. MUSIC FOR LIFE ACADEMY INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS 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 lo those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and assessing potenlial 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 charity's remuneration policies for directors, bonus levels and performance targets, if any,. Result5 of our enquiries of management about Iheir own identification and assessment of the risks of irregularities; Any matters we identified having obtained and reviewed the charity's d0￿mentatIon 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 intemal eL)nlrols established to mitigate risks of fraud or non-compliance wilh 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 incenlives Ihat may exist wilhin the charitable 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 lo perform specific procedures to respond lo the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the charity 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 prowsions of other laws and regulations that do not have a direct effect on the financial statements bul compliance wilh which may be fundamental to the charitable company's abilily to operate or to avoid a material penalty. MUSIC FOR LIFE ACADEMY INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF MUSIC FOR LIFE ACADEMY Audit response to risks identified Our procedures to respond to the risks identified induded the following= Reviewing ihe 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 daims- Perfomiing 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 joumal 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-complian￿ 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 non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations. or Ihe override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non- compliance wtth all laws and regulations. A further description of our responsibilities is available on the Financial Reporting Council's websile at.. https=Il www.frc.org.uklauditorsresponsibilities. This description fomis part of our auditovs report. 10- MUSIC FOR LIFE ACADEMY INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS 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 ta the charitable company's members those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullesl 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 Step en Houston FCA {Senior Ststutory Auditor} for and on behalf of GMCG LISBURN Chartered Accountants Statutory Auditor Century House 40 Crescent Business Park Lisburn BT28 2GN 11 MUSIC FOR LIFE ACADEMY STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Unrestricted Restricted funds ftinds 2024 2024 Total Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Notss Income from: Donations and legacies Charitable activities Investments 376,900 71,103 1.084 376,900 158,114 1,084 60,137 11,546 74,745 134,882 11,546 87,011 Total income 71,683 74,745 146,428 449,087 87,011 536.098 Expenditure on: Charitable activities 50,445 266,603 317,048 42,579 152,551 195,130 Totsl expenditure 50.445 266,603 317,048 42,579 152.551 195,130 Net incomel{outgoing) resources before transfers 21,238 (191,858) (170,620) 406,508 {65,540) 340,968 Gross transfers be￿een funds 12 <191.858) 191,858 (65,540) 65,540 Net incomel(expenditure) for the year (170,620) {170,620} 340,968 340,968 Reconciliation of funds: Fund balan￿$ at 1 April 2023 538,038 538,038 197,070 197,070 Fund balances at 31 March 2024 367,418 367,418 538,038 538,038 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 12- MUSIC FOR LIFE ACADEMY STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024 2024 2023 Notes Fixed assets Tangible assets Investments 13 14 1,497 2,030 1,498 2.031 Current assets Debtors Cash at bank and in hand 15 23,948 400,671 25,359 560,962 424,619 586,321 Creditors: amounts falling due within one year 16 {58,699) (50,314) Net current assets 365,920 536.007 Total assets less current liabilities 367,418 538.038 Income funds Unrestricted fLJnds 367,418 538,038 367,418 538,038 These financial statements have been prepared in accordance with the provisions applicable to companies subject lo the small companies regime. The financial statements were approved by the Directors and authorised for issue on its behalf by.. are signed on Mr R Hunter Trustee Company Registration No. 04202335 13- MUSIC FOR LIFE ACADEMY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies Charity infomiation Music for Life Academy is a private company limited by guarantee incorporated in England and Wales. The registered Offi￿ 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 accordan￿ with the charity's Igoverning document], the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland. ("FRS 102") and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102. The charity has taken advantage of the provisions in Ihe SORP for charities not to prepare a Statement of Cash Flows. The financial stalements are prepared in sterling, which is the functional currency of the chartty. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting poliaes adopted are set out below. These financial statement contain information about the individual charitable company, Music for Lrfe 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 direclors 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 concem At the time of approving the financial stalements, the directors have a reasonable expectation that the charity has adequate resources to continue in operational exislence for the foreseeable future. Thus the directors continue to adopt the going con￿rn 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 or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the finaneial 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. Legacies are recognised on receipt or otherwise if the Gharity 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. 14- MUSIC FOR LIFE ACADEMY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 AcGounting policies (Continued) 1.5 Expenditure Expenditure is recognised once there is a legal or constructive obligation to Iransfer economic benefit to a third party, il is probable that a Iransfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for ils beneficiaries. It includes both costs that can allocated directly to such activities and those costs of an indirect nature necessary lo support Ihem. Support and governance costs includes those costs associated with meeting the constilulional and statulory requirement of the charity and include the audit fees and any other fees linked to the slralegic management of the charily. Support and governance costs have been allocated lo charitable activilies 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 Ihe cost or valuation of assets less their residual values over their useful lives on the following bases.. Computer equipment Fixtures and fittings 33 /0 Straight line 15°/o reducing balance The gain or loss arising on the disposal of an asset is determined as the difference beiween the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. 1.7 Fixed asset investments Fixed asset investments are initially measured al transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net incomel{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 oblain 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 charily's balan￿ sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offsel, with the net amounts presented in the finan￿al statements, when there is a legally enforceable right to set off Ihe 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 2024 Accounting policies (Continued) Basic financial assets Basic financial assets, which include debtors and cash and bank balan￿s, 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 Ihe present value of the future receipts discounted at a market rate of interest. Finanual 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 fvture payments 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 servi￿$ 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 lo terminate the employment of an employee or to provide temination benefits. 1.11 Retirement benefjts Payments to defined contribution retirement benefil schemes are charged as an expense as they fall due. 1.12 Foreign exchange Transactions in cUrren￿eS 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 rales prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss. 16- MUSIC FOR LIFE ACADEMY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 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 Ihal are not readily apparent from other SoUr￿s. 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 eslimales are recognised in the period in which the estimate is revised where Ihe 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 directors regularly review these assets lives and change Ihem as necessary to reflect the current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets cOn￿rned. Changes in assel 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 unreslricled funds. The direclors consider it appropriate to allocate these funds based on donations received. Income from donations and legacies Unrestricted funds 2024 Unrestricted funds 2023 Donations and gifts 376,900 On 31 March 2023, Friends in the West Inlemalional, a related charity, gifted the charity its net assets totalling £376,900. 17 TJ VJ rt 41 ¢n * 04 MUSIC FOR LIFE ACADEMY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Income from investments Unrestricted Unrestricted funds funds 2024 2023 Gift Aid - Music for Life Records Limited Interest re￿1vable 6,320 5,226 554 530 11,546 1,084 19- eD