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2021-03-31-accounts

AWARD-WINNING RECOVERY PROGRAMMES FOR MUSICIANS EXPERIENCING MENTAL HEALTH PROBLEMS

2021 ANNUAL REPORT

K E Y C H A N G E S . O R G . U K

REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Objectives & Activities 03 Reference & Administrative Information 04 Introduction from the Chair of Trustees 05 Our Supporters 06 Achievements & Performance 07 Community Programmes 08 Hospital Programmes 10 Music Releases 11 Live Performances & Volunteering 12 Media Coverage 13 Financial Review 15 Governance 16 Trustees 17 Financial Statements 1 8

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report and financial statements for the year ended 31 March 2021.

The annual report and accounts have been prepared in accordance with the SORP issued in October 2019; Financial Reporting Standard 102; the Charities Act 2011; the Companies Act 2006 (including provisions in Part 15 applicable to companies subject to the small companies regime) and UK Generally Accepted Accounting Practice.

OBJECTIVES & ACTIVITIES

The charity’s objects as set out in our governing document are to preserve and protect mental health and assist in the rehabilitation of people with long term mental health problems through the provision of music therapy.

Key Changes uses a unique, music industry informed approach to increase the mental health and wellbeing of people with a wide range of mental health challenges. Our core programming is delivered in both hospitals and the community setting, and offers professional, music focused recovery support and artist development opportunities. These activities promote wellbeing and recovery through developing creative, technical and vocational skills – opening pathways to mainstream opportunities in volunteering, training, work experience and employment.

Trustees review the objectives and activities of the charity each year. We refer to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities, and ensure they reflect the purposes that the charity was set up to further.

This annual report highlights the outcomes of our work in the 12 months to 31st March 2021.

3

4

REFERENCE & ADMINISTRATIVE INFORMATION

Charity Name: Key Changes: Positive Mental Health Through Music Ltd Charity registration No: 1103774 Company registration No: 4641867

Registered Office: St Luke’s Community Centre, 90 Central Street, London EC1V 8AJ

Operational addresses:

North London: St Luke's Centre EC1V 8AJ South London: Pop Brixton, Brixton Station Rd, London SW9 8PQ Manchester: Green Fish Resource Centre, 45-50 Oldham St, Manchester M4 1LE

Board

Key Management Personnel

Trustees, who are also directors under company law, who served during the period of the report were:

Adam Thomas (Chair) Annette Alcock (Vice Chair) Paul Bonham Johny Brown Andrew Denney Elliott Jack Ben Jay Kelly McMinn Steven Odufuye Sukie Smith Mark Vincent

Peter Leigh (Chief Executive Officer and Company Secretary)

Ed West (Operations Manager) Darius Malik (Progression Manager)

Ishani Jasmin (Volunteer Manager)

Independent examiner

Bankers

John N Assie FCCA Jackson Nicholas Assie Ltd Meridian House 62 Station Road London E4 7BA

TSB Archway

INTRODUCTION FROM THE CHAIR OF TRUSTEES ADAM THOMAS

This report outlines our organisational developments and achievements during a year of significant challenge, change and adaptation in the wake of the global Coronavirus pandemic. In April 2021, the number of people contacting the NHS seeking help for mental health problems reached a record high, reflecting the mental health impact of prolonged uncertainty, isolation, and disruption to day-to-day life.

UK Government research has highlighted that those most at risk of adverse mental health amid Covid-19 have been young adults, minority ethnic communities, people experiencing socio-economic disadvantage, and those with pre-existing mental health conditions. Given that people from these backgrounds were already at greater mental health risk even prior to March 2020, there is no doubt that the pandemic has further increased longstanding health inequalities for our core beneficiaries.

We are proud to report that Key Changes continuously delivered services all through the year, ensuring timely, reliable, and consistent support for our vibrant and fast-growing artist community. To maintain our level of reach amid social distancing restrictions, we have established new community music studios in Brixton and Ladbroke Grove. We have also made significant progress in the implementation of our Board Development strategy, and are delighted to welcome several new trustees, who bring invaluable professional expertise from the music industry, business, and public health sectors.

We were thrilled to be selected as a finalist for the 2021 Gulbenkian Civic Arts Award for organisations who “boldly reimagined their missions to put their communities first during the pandemic”. Receiving more than 250 submissions from across the UK, a panel of advisors created a shortlist before the selection panel, chaired by Baroness Bull, selected a final list of ten organisations.

To meet urgent rising mental health need among young adults in mental health hotspots outside of Greater London, our Studio Discovery programme will support young people across Greater Manchester , Bristol, the West Midlands , and the South Coast over the coming year.

5

WE WOULD LIKE TO THANK THE MANY SUPPORTERS WHO HAVE HELPED MAKE OUR ACHIEVEMENTS POSSIBLE IN 2020/21, INCLUDING:

5th Element Allister Whitehead Angelo Ferreri Arts Council England Aviva Community Fund Baring Foundation Big Sync Blackstar BUPA Foundation Camden Giving C&I Charity City of London Clyde & Co Culture, Health & Wellbeing Alliance Comic Relief Crazy P Dept of Work & Pensions Ditto Music DJ Pitch DJ Rae

Dr Mandeep Singh Friends of Josh Bannister

Gaga Radio Garfield Weston Foundation

Glen Horsborough Graeme Park Gulbenkian UK Groundwork UK Help Musicians UK Jack Garrett Jas P

Last Night a DJ Foundation Let There Be House Lisa Chadderton

Lloyds Bank Foundation London Borough of Islington London Community Response Fund Lost Ones Music Milk & Sugar MIND Covid Mental Health Response Fund Mute Records National Lottery Fund NAO Netflix NTS Radio Oak Park Development Charity One in an Army Pirate Studios Prime Loops Pop Brixton PRS Foundation Queen B Richer Sounds Foundation Seb Fontaine Sebb Junior Ridney Riverside Radio Solidarity Sounds Step Management St James Place Foundation St Luke’s Community Trust The Blast The Rave Net Tru Thoughts Records Tudor Trust Youth Music Zara McFarlane

6

ACHIEVEMENTS & PERFORMANCE

HOW OUR ACTIVITIES DELIVER PUBLIC BENEFIT

- SERVICE PROVISION 2020 2021:

3,420 MUSICIANS EXPERIENCING DEPRESSION, ANXIETY, PTSD, BIPOLAR DISORDER, SCHIZOPHRENIA & OTHER MENTAL HEALTH CONDITIONS

5,470 SESSIONS DELIVERED IN HOSPITALS AND MUSIC STUDIOS 83% OF PEOPLE WE SUPPORTED WERE FROM ETHNIC MINORITY BACKGROUNDS

56 NEW SINGLE, EP & ALBUM RELEASES ON KEY CHANGES RECORDS – AVAILABLE ON ALL DIGITAL STREAMING PLATFORMS OPTIMISM AMONG OUR ARTISTS ROSE BY 110% ON AVERAGE*

ARTIST SENSE OF CONNECTION ROSE BY 181%* 100% OF ARTISTS REPORTED IMPROVED OVERALL WELLBEING

*SWEMWBS DATA

HOSPITAL SERVICES PROVIDED IN VALUED PARTNERSHIP WITH:

Camden & Islington NHS Foundation Trust East London NHS Foundation Trust Barnet, Enfield & Haringey Mental Health NHS Trust East London NHS Foundation Trust South London & Maudsley NHS Foundation Trust

Central & North West London NHS Foundation Trust Avon & Wiltshire Mental Health Partnership Sussex Partnership NHS Foundation Trust Greater Manchester Mental Health NHS Foundation Trust

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COMMUNITY PROGRAMMES

Key Changes’ award-winning 12-week Music Industry Recovery Programme offers studio sessions and artist development for all musicians, composers, songwriters, lyricists, producers, vocalists, and MCs with mental health Lived Experience.

In response to urgent rising mental health need among young adults following the coronavirus pandemic, in 2020/21 the charity launched a new five-week version - Studio Discovery. This is enabling us to engage many more young people in opportunities to collaborate with expertly matched Music Industry Mentors – exploring song writing, production and recording in a professional studio environment.

Both programmes offer regular live performance opportunities at Pop Brixton’s bustling indoor/outdoor venue, including Key Changes’ monthly Open Mic 4 Mental Health.

Artists also receive support to release music via our in-house label Key Changes Records; A&R feedback and coaching from a vibrant team of music industry experts, and support with identifying and accessing progression opportunities in creative education, training, and work experience.

Throughout 2020/21 artists benefitted from industry insights and coaching from experts including:

8

COMMUNITY PROGRAMMES

Key Changes’ unique approach promotes positive self-identity by offering artists a new way of knowing themselves, and a chance to redefine who they are – through professional music videos, photography, artist biographies and artwork which are shared and promoted through our vibrant digital media channels.

With vital funding support from City Bridge Trust, Youth Music, Arts Council England, and other supporters we have also increased our capacity to support young people leaving hospital care to access continuing Key Changes support in the community. In the coming year we will be delivering Studio Discovery to hundreds of young people from across Greater Manchester, Birmingham, Bristol, and Brighton.

9

HOSPITAL PROGRAMMES

Despite exceptional circumstances, we were able to continue providing in-person services in hospitals through the pandemic. The extraordinary challenges placed many hurdles in the way, especially around infection control and other health and safety concerns.

Throughout the year we continued to deliver ‘in-reach’ support to young people and adults receiving treatment on acute, intensive care, forensic and rehabilitation psychiatric wards in hospitals in London and other locations. This involved close partnership working with NHS and private in-patient providers.

Our community support for those leaving hospital care has been enhanced by a significant increase in our five-week Studio Discovery taster programme, and 12week Music industry Recovery Programme for those with greater level of need. Both programmes share our therapeutic approach fusing sessions with music industry mentoring.

10

KEY CHANGES RECORDS NEW RELEASES

More than 60 artists in mental health recovery released new music via our in house label throughout the year, spanning everything from Soul, HipHop, and R’n’B to Jazz, Blues, Rock and Alternative.

Artist Spotlight: D-Shine

London-based rapper D-Shine makes experimental hip hop - drawing influences from West Coast stars including Lil' Wayne, Dr Dre and Snoop Dogg.

Born in Zimbabwe, he came to England when he was 17 and faced the daunting task of learning to speak and rap in a new language. His mental health was affected by these and other difficulties, leading to some hard times including several hospital admissions. However, D-Shine is firmly focused on the positive, reflecting that “I am now able to do things I couldn’t do, like education and making music.”

He credits Key Changes with helping his recovery and says “I never dreamed I would be making music with professional producers. It gives me an activity during the week and gives me a focus for my energy".

D-Shine’s debut album ‘4 U’ is out now on Key Changes Records.

11

LIVE PERFORMANCE & VOLUNTEERING OPPORTUNITIES

Despite the difficulties of delivering live music events throughout the pandemic, Key Changes made excellent use of the vibrant atmosphere at Pop Brixton’s’ performance space throughout the year. We delivered fortnightly Open Mic 4 Mental Health events from July 2020 onwards, enabling artists to meet and socialise safely, hone their stagecraft skills, and get involved in a wide range of volunteering roles including sound engineering, front-of-house, hospitality, and promotion.

Artist Spotlight: Schwester

Schwester is a unique alternative artist whose musical influences growing up ranged from Bollywood film soundtracks to chart-topping pop and female fronted grunge bands like Skinny Girl Diet. Having made music with her twin sister for several years, Schwester is passionate about addressing racial and gender imbalances in the music industry through her work with Key Changes. She is currently collaborating with Key Changes producer David Corney (AKA Hyetal) on her upcoming release.

12

EXTERNAL ENGAGEMENT & MEDIA COVERAGE

Our charity received coverage in national and local media including Sky News, ITV News, Evening Standard, Clash Magazine, Islington Gazette, and others. Our social media channels continued to grow with over 20,000 subscribers and followers on our Twitter, Instagram, Facebook and YouTube channels. For World Mental Health Day 2020, we invited professionals from across the music industry to share their three words of mental health advice for artists during the pandemic.

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EXTERNAL ENGAGEMENT & MEDIA COVERAGE

Artist Spotlight: Two Bottle Kid

Hailing from South London, Two Bottle Kid is a versatile vocalist with a deep love for all things Reggae, Dancehall and HipHop. From his school days, Two Bottle was experimenting with poetry and developing his skills as a lyricist, and he went on to DJ with his local sound system in Brixton. In 2003, he was diagnosed with psychosis, marking the start of a long mental health recovery journey. Two decades on, Two Bottle has re-engaged with his music career through Key Changes. He says the charity has helped rebuild his confidence and focus on the positive. His latest release, ‘Ready to Pounce’ is out now on Key Changes Records.

14

FINANCIAL REVIEW

Key Changes generated total income of £404,701 in 2020/21, an increase of 15% per cent on 2019/20.

£56,988 of income was from unrestricted sources. General donations were just under £16,000. Expenditure increased by 8% to £327,209, reflecting additions to staff and increased project activity. Total surplus for the 2020/21 year was £77,429 including £36,988 surplus from unrestricted income.

RESERVES POLICY

The trustees seek to maintain a financial reserve in order to protect the organisation and its services from financial disruption, and provide working capital for innovation and service development. In order to maximise funding of service delivery and minimize unnecessary retention of income, the trustees have determined that the organisation needs free reserves to cover three months of core costs, and one month of project delivery costs. At budgeted activity levels (as at 31st March 2021) this equated to £54,000.

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GOVERNANCE AND MANAGEMENT

The organisation is a charitable company limited by guarantee, incorporated on 20th January 2003 and registered as a charity on 17th May 2004. The company was established under a Memorandum of Association which established the objects and powers of the organisation. Key Changes is governed under its Articles of Association which were most recently updated in October 2020. In the event of the charitable company being wound up members are required to contribute an amount not exceeding £1.

ORGANISATIONAL STRUCTURE AND DECISION MAKING

Governance is overseen by a Board of Trustees (the Board) which sets strategic direction, agrees budgets and operational policies and monitors performance. Trustees are recruited to provide the skills and insights the Board judges to be necessary for the effective management of the organisation. These currently include organisational strategy, financial management, fundraising, arts administration, mental health experience and music industry expertise. Trustees are also appointed to provide service user and staff representation. We are currently in the process of recruiting a new treasurer. The Chief Executive Officer attends the Board in his role as Company Secretary but has no voting rights.

All trustees give their time voluntarily and receive no benefits from the charity, except for the single staff representative trustee who receives payment for work undertaken towards the normal operation of business as governed by contracts of service. Trustee expenses reclaimed from the organisation are shown within the governance costs shown in the charity’s accounts. Trustees are required to disclose all relevant interests and to withdraw from any decisions where a conflict of interest arises.

Day-to-day management of the organisation is delegated to the Chief Executive Officer, who is responsible for ensuring that the charity delivers the services specified and that key performance indicators are met. The Chief Executive Officer provides individual supervision of the staff team and ensures that the team continuously develop their skills and knowledge in line with good practice. 100%

would recomend us to a friend

16

TRUSTEE RECRUITMENT AND INDUCTION

Requirements for new trustees are identified by the Board, and selective advertising and networking is used to identify candidates with the skills and insights required. Potential candidates are interviewed by the Chief Executive Officer and invited to observe a Board meeting prior to appointment being formalised by the remaining Board member. New trustees are provided with induction materials covering the organisation’s strategy, operating procedures and the expectations and responsibilities of trustees. As a minimum, this includes supported one-to-one review of Safeguarding and other policies, and further safeguarding training facilitated by Key Changes’ organisational safeguarding lead. Where appropriate to their role, trustees may be required to undertake further safeguarding training such as Level 1 Safeguarding Children training, and training on mental health awareness provided by our inhouse experts.

RESPONSIBILITIES OF THE TRUSTEES

The trustees (who are also directors of Key Changes for the purposes of company law) are responsible for preparing the annual report and financial statements in accordance with applicable law and United Kingdom accounting standards. Company law requires the management committee to prepare financial statements for each financial year which give a true and fair view of the affairs of the charitable company as at the balance sheet date; and its incoming resources and application of resources including income and expenditure for the financial year.

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

The annual report and accounts have been prepared in accordance with the SORP issued in October 2019; Financial Reporting Standard (FRS) 102; the Charities Act 2011; the Companies Act 2006 (including provisions in Part 15 applicable to companies subject to the small companies’ regime) and UK Generally Accepted Accounting Practice (UK GAAP).

Approved by the Management Committee on:

24th March 2022

and signed on its behalf by:

17

Adam Thomas Chair of Trustees

COMPANY REGISTRATION NUM8ER: 4641867 CHARITY REGISTRATION NUMBER: 1103774 Key Changes: Positive Mental Health Through Music Limited Company Limited by Guarantee Unaudited Financial Ststements 31 March 2021 Jaeksoll & J¢k50D A tradlng of Nichotss knle limited Chartered Certifd Arcountsnts & Stkntory Audito Suite 7, Meridin House 62 S¢¥tion Ro•qL ChiDgf4)rd Ddon E4 7BA

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 31 March 2021

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The trustees' annual report was approved on 24 March 2022 and signed on behalf of the board of trustees by:

Adam Thomas Chair

Jackson Nicholas Assie Limited Chartered Certified Accountants

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Independent Examiner's Report to the Trustees of Key Changes: Positive Mental Health Through Music Limited

Year ended 31 March 2021

I report to the trustees on my examination of the financial statements of Key Changes: Positive Mental Health Through Music Limited ('the charity') for the year ended 31 March 2021.

Responsibilities and basis of report

As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 {'the 2006 Act').

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.

I have completed my examination. I confirm that no ma t ers have come to my attention in connection with the examination giving me cause to believe:

Jackson Nicholas Assie Limited Chartered Certified Accountants

- 20 -

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Independent Examiner's Report to the Trustees of Key Changes: Positive Mental Health Through Music Limited (continued)

Year ended 31 March 2021

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

John Assie FCCA Independent Examiner Jackson Nicholas Assie Limited Chartered Ce.rtified Accountants Suite 7, Meridian House 62 Station Road Chingford London E4 7BA

Date 28 March 2022

Jackson Nicholas Assie Limited Chartered Certified Accountants

- 21 -

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

Year ended 31 March 2021

2021 2020
Unrestricted Restricted
funds funds Total funds Total funds
Note £ £ £
Income and endowments
Donations and legacies 5 39,617 39,617 16,839
Charitable activities 6 322,145 69,033 391,178 334,408
Total income 361,762 69,033 430,795 351,247
Expenditure
Expenditure on raising funds:
Costs of raising donations and
legacies 7 298 298 14,852
Expenditure on charitable activities 8,9 284,013 43,146 327,159 288,941
Total expenditure 284,311 43,146 327,457 303,793
Net income and net movement in funds 77,451 25,887 103,338 47,454
Reconciliation of funds
Total funds brought forward 36,943 47,731 84,674 37,220
Total funds carried forward 114,394 73,618 188,012 84,674

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 25 to 35 form part of these financial statements.

Jackson Nicholas Assie Limited Chartered Certified Accountants

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Statement of Financial Position

31 March 2021

Fixed assets
Tangible fixed assets
Current assets
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
Net current assets
Total assets less current liabilities
Net assets
Funds of the charity
Restricted funds
Unrestricted funds
Total charity funds
Note
15
16
17
18		 2021
3,723
81,242
115,770
197,012
~~(12,723)~~
184,289
188,012
188,012
73,618
114,394
188,012
2020
£
16,296
72,997
89,293
(4,619)
84,674
84,674
84,674
47,731
36,943
84,674

For the year ending 31 March 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

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

These financial statements were approved by the board of trustees and authorised for issue on 24 March 2022, and are signed on behalf of the board by:

The notes on pages 25 to 35 form part of these financial statements.

Adam Thomas Mark Vincent Trustee Trustee

Company Registration Number: 4641867

Jackson Nicholas Assie Limited Chartered Certified Accountants

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Statement of Cash Flows

Year ended 31 March 2021

2021 2020
£ £
Cash flows from operating activities
Net income 103,338 47,454
Adjustment for:
Depreciation of tangible fixed assets 1,861
Interest payable and similar charges 87
Accrued income (8,984)
Changes in:
Trade and other debtors (54,012) (801)
Trade and other creditors 6,154 (1,007)
Cash generated from operations 48,444 45,646
Interest paid (87)
Net cash from operating activities 48,357 45,646
Cash flows from investing activities
Purchase of tangible assets (5,584)
Net increase in cash and cash equivalents 42,773 45,646
Cash and cash equivalents at beginning of year 72,997 27,351
Cash and cash equivalents at end of year 115,770 72,997

Jackson Nicholas Assie Limited Chartered Certified Accountants

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 March 2021

1. General information

The charity is a public benefit entity and a private company limited by guarantee. registered in England and Wales and a registered charity in England and Wales. The address of the registered office is St Luke's Community Centre, 90 Central Street, London, EC1V 8AJ.

2. Statement of compliance

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The trustees have considered the impact of COVID-19 on the charities activities and have concluded there is no long-term impact on the Organisation. As a result, it is considered that the going concern status remains intact.

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements

There are no judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Jackson Nicholas Assie Limited Chartered Certified Accountants

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

3. Accounting policies (continued)

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Jackson Nicholas Assie Limited Chartered Certified Accountants

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

3. Accounting policies (continued)

Tangible assets (continued)

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures, fittings and equipment -

Straight line over 3 years

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Jackson Nicholas Assie Limited Chartered Certified Accountants

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

Accounting policies (continued)

4. Limited by guarantee

Key Changes is a company limited by guarantee and accordingly does not have a share capital.

Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

Jackson Nicholas Assie Limited Chartered Certified Accountants

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

5. Donations and legacies

Donationsandlegacies
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Donations
Donations 39,617 39,617 16,839 16,839
6. Charitable activities
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Fees - Music Engagement and Recovery Serices
and Musical Performances		 118,299 118,299
National Lottery
National Foundation of Youth Music 10,000 42,033 52,033
LB Hackney
Tudor Trust 2,000 27,000 29,000
Lloyds Bank Foundation 10,216 10,216
LB Islington 19,700 19,700
St James Place
Camden Giving 715 715
PRS Foundation 5,000 5,000
Chalk Hill Trust
Goldsmith Charity
D Oyly Care Charitable Trust
Arts Council		 33,700 33,700
Baring 12,250 12,250
Bupa 30,000 30,000
City of London
Garield Weston Foundation
Groundwork UK		 46,710
10,000
3,555		 46,710
10,000
3,555
Mind - Coronavirus Mental Health Response fund 20,000 20,000
322,145 69,033 391,178

Jackson Nicholas Assie Limited Chartered Certified Accountants

• 29 •

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

6. Charitable activities (continued)

Charitable activities(continued)
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Fees - Music Engagement and Recovery Services
and Musical Performances 101,753 101,753
National Lottery 47,417 47,417
National Foundation of Youth Music 42,034 42,034
LB Hackney 37,594 37,594
Tudor Trust 27,000 27,000
Lloyds Bank Foundation 25,000 25,000
LB Islington 19,700 19,700
St James Place 9,970 9,970
Camden Giving 6,340 6,340
PRS Foundation 5,000 5,000
Chalk Hill Trust 4,900 4,900
Goldsmith Charity 3,200 3,200
D Oyly Carte Charitable Trust 3,000 3,000
Arts Council 1,500 1,500
Baring
Bupa
City of London
Garfield Weston Foundation
Groundwork UK
Mind - Coronavirus Mental Health Response Fund
101,753 232,655 334,408

7. Costs of raising donations and legacies

Costs of raising donations and legaci es es
UnrestrictedTotal Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Costs of raising donations and legacies
- fundraising costs 298 298 14,852 14,852

Jackson Nicholas Assie Limited Chartered Certified Accountants

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

8. Expenditure on charitable activities by fund type

Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Recovery support and artist development 223,353 40,166 263,519
Support costs 60,660 2,980 63,640
284,013 43,146 327,159
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Recovery support and arist development 42,400 212,424 254,824
Support costs 34,117 34,117
--
76,517 212,424 288,941

9. Expenditure on charitable activities by activity type

Activities
underaken
directly
Support costs		 Total funds
2021		 Total fund
2020
£ £ £ £
Recovery support and artist
development 263,519
54,663		 318,182 283,847
Governance costs 8,977 8,977 5,094
263,519
63,640		 327,159 288,941

10. Analysis of support costs (excluding governance costs)

Total 2021 Total 2020
£ £
Admin 6,617
Repairs and maintenance 1,068
Volunteer Expenses 2,735 1,683
Office and Studio Rent 30,674 21,093
Marketing, Publicity and Website 3,804 590
Printing, Postage and Stationery 764 2,079
Telecommunications 1,433 1,293
Computer Expenses 3,066 769
Equipment 1,029 243
Membership and Subscription 545 527
Insurance 585 746
Miscellaneous 2,343
54,663 29,023

Jackson Nicholas Assie Limited Chartered Certified Accountants

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

1 0a. Analysis of governance costs

Analysis of governance costs
Total 2021 Total 2020
£ £
Independent Examiners Fees 4,032 775
Bookkeeping 2,295 2,105
DBS 631 856
Bank and Other Charges 451 257
AGM/Board Meeting Expenses 1,465 1,101
Legal and Professional Fees 103
8,977 5,094

11. Net income

Net income is stated after charging/(crediting):

Net income is stated after charging/(crediting):
2021 2020
£ £
Depreciation of tangible fixed assets 1,861
Operating lease rentals 30,047 20,160
12. Independent examination fees
2021 2020
£ £
Fees payable to the independent examiner for:
Independent examination of the financial statements 4,032 775

13. Staff costs

Staff costs Staff costs
The total staf costs and employee benefits for the reporting period are analysed as follows:
2021 2020
£ £
Wages and salaries 64,809 64,068
Social security costs 3,132 1,738
67,941 65,806

The average head count of employees during the year was 2 (2020: 2). The average number of full-time equivalent employees during the year is analysed as follows:

2021 2020
No. No.
Number of staff 2 2

No employee received employee benefits of more than £60,000 during the year (2020: Nil).

Key Management Personnel

Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total paid to key management personnel for services provided to the charity was £48,330 (2020: £40,960).

Jackson Nicholas Assie Limited Chartered Certified Accountants

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

14. Trustee remuneration and expenses

During the year Adam Thomas and Andrew Denney, both had expenses to the value of £461.12 and £ 13 respectively, being reimbursed to them to cover the trustee meeting costs (2020: None).

15. Tangible fixed assets

15. Tangible fixed assets
Fixtures and
fittings
£
Cost
At 1 April 2020
Additions 5,584
At 31 March 2021 5,584
Depreciation
At 1 April 2020
Charge for the year 1,861
At 31 March 2021 1,861
Carrying amount
At 31 March 2021 3,723
At 31 March 2020
16. Debtors
2021 2020
Trade debtors 50,742
Prepayments and accrued income 26,084
15,000
Other debtors 4,416
1,296
81,242
16,296
17. Creditors: amounts falling due within one year
2021 2020
Trade creditors 300
Accruals 4,405
2,455
Social security and other taxes 8,018
2,164
12,723
4,619

Jackson Nicholas Assie Limited Chartered Certified Accountants

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

18. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
At At
1 April 2020 Income Expenditure 31 March 2021
£ £ £ £
General funds 36,943 361,762 (284,311) 114,394
At At
1 April 2019 Income Expenditure 31 March 2020
£ £ £ £
General funds 9,720 118,592 (91,369) 36,943
Restricted funds
At At
1 April 2020 Income Expenditure31 March 2021
£ £ £ £
Hospital Programme
Community Programme 27,731 42,033 (43,146) 26,618
Lloyds Bank Foundation 20,000 20,000
Tudor Trust 27,000 27,000
47,731 69,033 (43,146) 73,618
At At
1 April 2019 Income Expenditure 31 March 2020
£ £ £ £
Hospital Programme 57,294 (57,294)
Community Programme 6,000 123,361 (101,630) 27,731
Lloyds Bank Foundation 21,500 25,000 (26,500) 20,000
Tudor Trust 27,000 (27,000)
27,500 232,655 (212,424) 47,731

Purposes of Funds

Hospital Programme - This programme provides mental health recovery-focused music workshops on the wards in acute, intensive care, rehabilitation and other in patient mental health settings.

Community Programme - This programme provides structured recovery-focused programmes for musicians experiencing depression, anxiety, PTSD, bipolar disorder, psychosis and other mental illness using specially adapted music industry practices.

Lloyds Bank Foundation - This funding is to facilitate salary costs.

Tudor Trust - This funding is to facilitate salary costs

Jackson Nicholas Assie Limited Chartered Certified Accountants

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

19. Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Tangible fixed assets 3,723 3,723
Current assets 123,394 73,618 197,012
Creditors less than 1 year (12,723) (12,723)
Net assets 114,394 73,618 188,012
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Tangible fixed assets
Current assets 41,562 47,731 89,293
Creditors less than 1 year (4,619) (4,619)
Net assets 36,943 47,731 84,674
Analysis of changes in net debt
At
At 1 Apr 2020 Cash flows 31 Mar 2021
£ £ £
Cash at bank and in hand 72,997 42,773 115,770

20. Analysis of changes in net debt

21. Operating lease commitments

The total future minimum lease payments under non-cancellable operating leases are as follows:

2021 2020
£ £
Not later than 1 year 41,220 20,160
Later than 1 year and not later than 5 years 24,450 34,080
65,670 54,240

22. Post balance sheet events

During December 2021 the charity entered a contract with the Cultural Impact Development Loans organisation. Cultural Impact Development Loans has provided a loan to the charity for the amount of £66,666, this is to provide additional working capital for the advancement of existing activities and programmes. The loan will be repayable over 5 years from January 2022.

23. Related parties

In addition to the reimbursement of trustee expenses in note 14, A Denney, A Thomas, E Jack, J Brown, M Vincent, S Odufoye and S Smith were each given £50 gift vouchers for services supplied to the charity. There were no such transactions in the previous year

Jackson Nicholas Assie Limited Chartered Certified Accountants