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2022-03-31-accounts

2022

ANNUAL REPORT Key Changes: Positive Mental Health Through Music Ltd.

TABLE OF CONTENTS About Key Changes...........4 Trustees Report.....................7 Chair's Report.........................9 Services......................................11 Impact........................................12 Achievement.........................13 Context......................................14 Supporters...............................16 Financial Report..................18

"OPENED THE DOOR DURING MY DARKEST DAYS - HELPED ME REDISCOVER MY MUSICAL SOUL"

V3SPA

4

www..keychanges.org.uk

About Key Changes

We’re a national charity working with local communities to promote positive mental health & wellbeing through music.

Our services support people struggling with depression, anxiety, PTSD, bipolar, psychosis, neurodiverse conditions including ADHD, autism spectrum disorder, dyslexia, dyspraxia and other learning disabilities.

Using a unique music industry informed, evidence based therapeutic approach, our work is delivered by a mentor team composed of specially trained professional producers, artists, managers, industry experts and creatives.

Our programmes are specifically designed for, and with, groups that are disproportionately represented in the mental health system. We aim to address health inequalities, social exclusion, and stigma and discrimination.

info@keychanges.org.uk

5

www..keychanges.org.uk

Since 1997 we have been supporting people experiencing barriers to mainstream opportunities due to mental ill health.

More than 85% of participants have been from low-income Black or other minority ethnic backgrounds of whom a third have first engaged whilst sectioned under the Mental Health Act.

We have a track record of supporting ‘hard to reach’ communities and developing specialist projects for groups including asylum seekers, refugees, individuals from the LGBTQ+ community.

Our evidence-based approach draws on clinical therapeutic techniques combined with specifically adapted elements of music industry practice.

Our innovative programmes support creative, technical and vocational skills and open pathways to mainstream opportunities in education, training, work experience and employment.

info@keychanges.org.uk

"HELPED ME OVERCOME MY ANXIETIES & ACHIEVE MY DREAM OF BECOMING A RECORDING ARTIST"

SOPHIE

7

www.keychanges.org.uk

Trustees report

The Trustees present their annual report and financial statements for the year ended 31 March 2022.

Key Changes uses a unique, music industry informed approach to improve the mental health and wellbeing of people with a wide range of mental health challenges. Our core programming is delivered in both hospitals and community settings, and offers mentoring support from professional musicians and producers, and artist development with industry experts.

The annual report and accounts have been prepared in accordance with the SORP issues 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.

These activities promote wellbeing and recovery through developing creative, technical and vocational skills and opening pathways to mainstream opportunities in volunteering, training, work experience and employment.

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.

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.

8

www.keychanges.org.uk

Financial Review

2021/22 total income £452,387 (5% increase on 2020/21). £200,767 from unrestricted sources. £53,486 increased income from charitable activities. General donations £7,630. Expenditure £423,328 (28% increase due to staff recruitment, service growth, COVID related operational costs). Total funds carried forward from 2021/22 £217,071. £33,266 surplus from unrestricted income.

Governance & Management

Charitable company limited by guarantee, incorporated 20th January 2003 and registered as a charity 17th May 2004. Established under a Memorandum of Association governed under Articles of Association updated October 2020. In event of being wound up members required to contribute amount not exceeding £1.

Trustee Recruitment & Induction

Requirements for new trustees are identified by the Board, and selective advertising and networking is used to identify candidates with skills and insights required. Potential candidates are interviewed by the CEO and invited to observe a Board meeting prior to appointment being formalised by the Board. New trustees are provided with induction materials covering the expectations and responsibilities of trustees. As a minimum, this includes review of Safeguarding and other policies.

Reserves Policy

A financial reserve protects the organisation and its services from financial disruption and provides working capital for innovation and development. To maximise funding of services and minimize retention of income the trustees have determined that the organisation needs reserves to cover 3 months of core costs and 1 month of delivery costs. At 31st March 2022) this equated to £58,000.

Organisational Structure & Descison Making

Governance is overseen by Board of Trustees which sets strategic direction, agrees budgets and operational policies, and monitors performance. Trustees provide skills, insights and staff representation. Day-to-day management is delegated to CEO, who ensures delivery of services and key performance indicators. CEO attends Board as Company Secretary but has no voting rights.

Responsibilites of the trustees

The trustees (also directors for purposes of company law) are responsible for preparing annual report and financial statements. Company law requires financial statements which give a true view at balance sheet date; The trustees are responsible for keeping records that disclose the financial position of the company, and ensure the financial statements comply with the Companies Act 2006. Trustees are responsible for safeguarding the assets and taking steps for prevention of fraud and other irregularities.

9

www.keychanges.org.uk

Chair's report

All the people we help each year are struggling with mental illness and the stigma, discrimination, social injustice, and health inequalities that come with it. Increasingly they’re also dealing with homelessness or housing insecurity, money worries, food and fuel poverty. Over 95% are unemployed or low income; 85% are from racialised communities.

Our services are being provided against a backdrop of the ongoing effects of the pandemic, economic and political uncertainty, funding cuts and reductions to support elsewhere. Daily, our staff find themselves being asked to take up the slack, navigating the Care Act and Mental Health Act to ensure we can continue to meet ever more complex needs.

Remarkably, the charity has continued to thrive. The dedication and passion of our CEO and staff team, trustees, volunteers, and service users has contributed to positive progress towards our Business Plan key priorities:

Board sub-committees provide strategic expertise in health and social care and the music industry. Investment from Nesta’s Cultural Impact Development Fund is facilitating new partnerships with local authorities and NHS. The introduction of our new Lamplight database and online systems have delivered service improvements and efficiencies. Our record label, membership of networks including Culture Health Wellbeing Alliance, and extensive media coverage brings our work to growing audiences.

The resulting energy and momentum, together with ongoing coproduction with our service users, means the charity is well placed to respond to these challenging times.

Administrative Information Key Changes Positive Mental Health Through Music Ltd Charity Number: 1103774 Company Number: 04641867 Registered Office: 46 - 50 Oldham St, Manchester M4 1LE Operational Locations: St Lukes Community Centre London EC1V 8AJ Pop Brixton London SW9 8PQ Green Fish Resource Centre Manchester M4 1LE Board Adam Thomas, Chair Annette Alcock, Vice Chair Paul Bonham Johny Brown Elliott Jack Kelly McMinn Sukie Smith Mark Vincent Senior Management Peter Leigh, CEO Johan Ohlstrom, Service Manager Ed West, Operations Manager Bank TSB Business Independent Examiner John N Assie FCCA Jackson Nicholas Assie Ltd

"GAVE ME HOPE & SUPPORT, A PLACE TO MEET LIKEMINDED PEOPLE, LIFTED MY MOOD & CONFIDENCE”

DAZZLER

11

www.keychanges.org.uk

Our Services

Hospitals

Pop-up recording studio sessions for young people & adults on inpatient acute, intensive care, rehabilitation, and other psychiatric wards

Progression

Volunteering opportunities & supported work placements, progression to education, training and employment

Community

Mood-boosting recovery-focused mentoring programmes, tailored to individual interests & aspirations, delivered in professionally equipped studios

Performance

Performance at open mic’s, concerts and in music video, boosts artists’ confidence & self-esteem and challenges stigma & discrimination around mental health issues

12

www..keychanges.org.uk

Our Impact

4,650

100% 95% 85% 60% 5,970 1,254 78 29 1,152 73 76

2022

people accessing service

experiencing mental health difficulties

unemployed / low income

Black / minority ethnic

homeless or insecure housing hours of one-to-one support

hours of phone contact with service users / care teams supported volunteering & work experience placements

progression to education, training or employment

hours of professional volunteers' time

"Open Mic 4 Mental Health" events

releases on Key Changes Records

Selected Achievements

----- Start of picture text -----
Awards Media Conferences
& Performances
BBC One "The One Show" 2016
2009 Sky News
Linda Polan Trophy ITV News Royal College of Psychiatry
BBC London News Diversity Conference
BBC Radio London 2017
2010 "Being Black, Going Crazy" Good Thinking
C&I Trust Services for (BBC3 documentary) Conference
"Behind Locked Doors"
the Wider Community (MIND documentary) 2018
The Independent Mayor Of London
Evening Standard Health Conference
2014
City AM 2019
Positive Practice in Islington Gazette Power of Music in
Mental Health Award Islington Tribune
Healthcare Conference
Camden New Journal
(Diversity Category) Camden Gazette 2012-2020
Ham & High Word Festival
2021 Clash Magazine 2021
UK Civic Arts Award Huck Magazine CHWA Awards
Trench Magazine
2022
Finalist GRM Daily
Link up TV Dignity in Care Awards
----- End of picture text -----

13

www.keychangess.org.uk

Mental Health Context

Global prevalence of anxiety and depression increased by 25% in the first year of the COVID-19 pandemic (World Health Organization (WHO))

1 in 4 people will experience a mental health problem of some kind each year in England (MIND)

Mental ill health is the second-largest cause of burden of disease in England (Mental Health Foundation)

H A L F O F M E N T A L I L L H E A L T H S T A R T S B Y

age 15 AND 75% DEVELOPS BY AGE 18

P R E V E L A N C E O F M E N T A L H E A L T H C O N D I T I O N S

25-30%

IN HOMELESS POPULATION

B L A C K P E O P L E

4X

MORE LIKELY THAN WHITE PEOPLE TO BE DETAINED UNDER MENTAL HEALTH ACT

C H I L D R E N A N D Y O U N G P E O P L E

18,778 ADMITTED TO HOSPITAL FOR SELF HARM (2016)

C A S E S O F W O R K - R E L A T E D S T R E S S , D E P R E S S I O N O R A N X I E T Y

602,000 IN GREAT BRITAIN (2018/19)

E V E R Y Y E A R

£105 billion

ECONOMIC COSTS OF MENTAL HEALTH ISSUES IN ENGLAND

“The information we have now about the impact of COVID-19 on the world’s mental health is just the tip of the iceberg. This is a wake-up call to all countries to pay more attention to mental health and do a better job of supporting their populations’ mental health.”

Dr Tedros Adhanom Ghebreyesus WHO Director-General

www.keychanges.org.uk

14

"BRINGS PEOPLE TOGETHER AND PUSHES THEM THAT LITTLE BIT FURTHER"

RUTH

Supporters

Alexandra Park School Andrew Denney Arts Council England Avon & Wiltshire Mental Health Partnership Baring Foundation Barnet, Enfield & Haringey Mental Health NHS Trust Brook BUPA Foundation C&I Charity Camden & Islington NHS Foundation Trust Camden Giving Carrie Hill Central & North West London NHS Foundation Trust Charles S French Charitable Trust Charlie Hetherington City Bridge Trust City of London Coop Community Fund CRH Charitable Trust Culture, Health & Wellbeing Alliance D’Oyly Carte Charitable Trust Duchy of Lancaster Benevolent Fund East London NHS Foundation Trust Focusrite Friends of Aaron Carter Garfield Weston Foundation Greater Manchester Mental Health NHS Foundation Trust Jannete Hamrouni Henry Smith Charity Hesper Murray

Last Night a DJ Foundation Lloyds Bank Foundation WE ARE GRATEFUL London Borough of Hounslow London Borough of IslingtonManchester Guardian Society TO THOSE WHO Charitable Trust Melissa Dicks Morris Charitable Trust SUPPORTED THE Mrs Smith & Mount Trust NESTA Cultural Impact Development Fund CHARITY IN 2021/22 Old Oak and Park Royal Development Corporation (OPDC) Paul Sparshott Peter & Sue Woodsford Pixel Fund Pop Brixton Postcode Society Trust Richer Sounds Foundation Savannah Morrish St Luke’s Community Centre Shears Foundation Sir Jules Thorn Charitable Trust Soundtoys South London & Maudsley NHS Foundation Trust Specialist Community Forensic Team Sussex Partnership NHS Foundation Trust Swire Charitable Trust Tudor Trust Tesco Community Grants Victoria Hulme Waitrose & Partners Clerkenwell Youth Music Zochonis Charitable Trust

16

www.keychanges.org.uk

"BEEN IN AND OUT OF HOSPITAL FROM AGE 15 - HAVEN'T BEEN BACK SINCE I STARTED COMING HERE"

STICKZ

Financial Report

----- Start of picture text -----
2017 2018 2019 2020 2021 2022
500,000
400,000
300,000
200,000
100,000
0
income expenditure
----- End of picture text -----

18

www.keychanges.org.uk

COMPANY REGISTRATION NUMBER: 4641867 CHARITY REGISTRATION NUMBER: 1103774

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee Unaudited Financial Statements 31 March 2022

Jackson & Jackson

A trading name of Jackson Nicholas Assie Limited Chartered Certified Accountants & Statutory Auditors Suite 7, Meridian House 62 Station Road, Chingford London E4 7BA

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Financial Statements

Year ended 31 March 2022

Page
Independent examiner's report to the trustees 22
Statement of financial activities (including income and 24
expenditure account)
Statement of financial position 25
Statement of cash flows 27
Notes to the financial statements 28

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

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

Year ended 31 March 2022

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 30 January 2023 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 2022

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 2022.

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 matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or

  4. the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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 (continued)

Year ended 31 March 2022

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 Certified Accountants Suite 7, Meridian House 62 Station Road Chingford London E4 7BA

31 January 2023

Jackson Nicholas Assie Limited Chartered Certified Accountants

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 2022

2022 2021
Unrestricted Restricted
funds funds Total funds Total funds
Note £ £ £ £
Income and endowments
Donations and legacies 5 7,630 – 7,630 39,617
Charitable activities 6 193,137 288,907 482,044 391,178
Other income 7 93 – 93 –
───────── ───────── ───────── ─────────
Total income 200,860 288,907 489,767 430,795
═════════ ═════════ ═════════ ═════════
Expenditure
Expenditure on raising funds:
Costs of raising donations and
legacies 8 5,626 – 5,626 298
Expenditure on charitable activities 9,10 276,402 141,300 417,702 327,159
───────── ───────── ───────── ─────────
Total expenditure 282,028 141,300 423,328 327,457
═════════ ═════════ ═════════ ═════════
───────── ───────── ───────── ─────────
Net income and net movement in funds (81,168) 147,607 66,439 103,338
═════════ ═════════ ═════════ ═════════
Reconciliation of funds
Total funds brought forward 114,394 73,618 188,012 84,674
───────── ───────── ───────── ─────────
Total funds carried forward 33,226 221,225 254,451 188,012
═════════ ═════════ ═════════ ═════════

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 18 to 30 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 2022

2022 2021
Note £ £
Fixed assets
Tangible fixed assets 16 4,754 3,723
Current assets
Debtors 17 92,387 81,242
Cash at bank and in hand 246,531 115,770
───────── ─────────
338,918 197,012
Creditors: amounts falling due within one year 18 (35,888) (12,723)
───────── ─────────
Net current assets 303,030 184,289
───────── ─────────
Total assets less current liabilities 307,784 188,012
Creditors: amounts falling due after more than one year 19 (53,333) –
───────── ─────────
Net assets 254,451 188,012
═════════ ═════════
Funds of the charity
Restricted funds 221,225 73,618
Unrestricted funds 33,226 114,394
───────── ─────────
Total charity funds 21 254,451 188,012
═════════ ═════════

For the year ending 31 March 2022 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.

Jackson Nicholas Assie Limited Chartered Certified Accountants

Key Changes: Positive Mental Health Through Music Limited

Company Limited by Guarantee

Statement of Financial Position (continued)

31 March 2022

These financial statements were approved by the board of trustees and authorised for issue on 30 January 2023, and are signed on behalf of the board by:

Adam Thomas Trustee

Mark Vincent Trustee

The notes on pages 18 to 30 form part of these financial statements.

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 2022

2022 2021
£ £
Cash flows from operating activities
Net income 66,439 103,338
Adjustments for:
Depreciation of tangible fixed assets 3,306 1,861
Interest payable and similar charges 778 87
Accrued expenses/(income) (851) (8,984)
Changes in:
Trade and other debtors 301 (54,012)
Trade and other creditors (763) 6,154
──────── ─────────
Cash generated from operations 69,210 48,444
Interest paid (778) (87)
──────── ────────
Net cash from operating activities 68,432 48,357
════════ ════════
Cash flows from investing activities
Purchase of tangible assets (4,337) (5,584)
──────── ────────
Net cash used in investing activities (4,337) (5,584)
════════
Cash flows from financing activities
Proceeds from borrowings 66,666 –
──────── ────────
Net cash from financing activities 66,666 –
════════ ════════
Net increase in cash and cash equivalents 130,761 42,773
Cash and cash equivalents at beginning of year 115,770 72,997
───────── ─────────
Cash and cash equivalents at end of year 246,531 115,770
═════════ ═════════

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 2022

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 Green Fish Resource Centre, 46-50 Oldham Street, Manchester, M4 1LE.

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 all relevant factors, including the long-term impact of COVID-19 on the charity's activities and have concluded there is no significant impact on the Organisation.

It is therefore considered that the going concern status remains intact and 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 2022

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.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

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 2022

3. Accounting policies (continued)

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.

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.

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 2022

3. Accounting policies (continued)

Financial instruments (continued)

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.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.

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 2022

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.

5. Donations and legacies

Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Donations
Donations 7,630 7,630 39,617 39,617
═══════ ═══════ ════════ ════════
Charitable activities
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Fees - Music Engagement and Recovery Services
and Musical Performances 119,716 – 119,716
National Foundation of Youth Music – 29,977 29,977
Tudor Trust – 25,000 25,000
Lloyds Bank Foundation – 50,000 50,000
LB Islington 19,700 – 19,700
Dutchy of Lancaster 700 – 700
Camden Giving – – –
PRS Foundation – – –
CRH Foundation – 6,250 6,250
Old Oak Park – 17,480 17,480
Postcode Community – 19,710 19,710
The Henry Smith Foundation – 2,500 2,500
The Pixel Fund – 3,200 3,200
Richer Sound Foundation 10,000 – 10,000
Cultural Impact 33,334 – 33,334
Kick Start Income 9,288 – 9,288
The Swire Charitable Trust 24,880 24,880
Arts Council – 47,240 47,240
Baring – 23,940 23,940
Bupa – – –
City of London – 33,780 33,780
Garfield Weston Foundation – – –
Groundwork UK 395 – 395
Mind - Coronavirus Mental Health Response Fund – – –
Brook Young People – 4,950 4,950
Other income from charitable activities – Events 4 – 4
───────── ───────── ─────────
193,137 288,907 482,044
═════════ ═════════ ═════════

6. Charitable activities

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 2022

6. Charitable activities (continued)
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Fees - Music Engagement and Recovery Services
and Musical Performances 118,299 – 118,299
National Foundation of Youth Music 10,000 42,033 52,033
Tudor Trust 2,000 27,000 29,000
Lloyds Bank Foundation 10,216 – 10,216
LB Islington 19,700 – 19,700
Dutchy of Lancaster – – –
Camden Giving 715 – 715
PRS Foundation 5,000 – 5,000
CRH Foundation – – –
Old Oak Park – – –
Postcode Community – – –
The Henry Smith Foundation – – –
The Pixel Fund – – –
Richer Sound Foundation – – –
Cultural Impact – – –
Kick Start Income – – –
Other income - event – – –
Arts Council 33,700 – 33,700
Baring 12,250 – 12,250
Bupa 30,000 – 30,000
City of London 46,710 – 46,710
Garfield Weston Foundation 10,000 – 10,000
Groundwork UK 3,555 – 3,555
Mind - Coronavirus Mental Health Response Fund 20,000 – 20,000
Brook Young People – – –
───────── ──────── ─────────
322,145 69,033 391,178
═════════ ════════ ═════════
7. Other income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Royalty 93 93 – –
════ ════ ════ ════
8. Costs of raising donations and legacies
Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Costs of raising donations and legacies
– fundraising costs 5,626 5,626 298 298
═══════ ═══════ ════ ════

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 2022

9. Expenditure on charitable activities by fund type

Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Recovery support and artist development 208,149 129,111 337,261
Support costs 68,253 12,189 80,441
───────── ───────── ─────────
276,402 141,300 417,702
═════════ ═════════ ═════════
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
═════════ ════════ ═════════

10. Expenditure on charitable activities by activity type

Activities
undertaken Total funds Total fund
directly Support costs 2022 2021
£ £ £ £
Recovery support and artist
development 337,261
65,852		 403,113 318,182
Governance costs – 14,589 14,589 8,977
─────────
────────		 ───────── ─────────
337,261
80,441		 417,702 327,159
═════════
════════		 ═════════ ═════════

11. Analysis of support costs (excluding governance costs)

Recovery,
Support and
Artist
Development Total 2022 Total 2021
£ £ £
Staff costs 3,701 3,701 6,617
Premises 1,460 1,460 1,068
Volunteer Expenses 3,701 3,701 2,735
Office and Studio Rent 40,943 40,943 30,674
Marketing, Publicity and Website 1,864 1,864 3,804
Printing, Postage and Stationery 444 444 764
Telecommunications 1,055 1,055 1,433
Computer Expenses 2,808 2,808 3,066
Equipment 2,068 2,068 1,029
Membership and Subscription 443 443 545
Insurance 838 838 585
Miscellaneous 6,527 6,527 2,343
──────── ──────── ────────
65,852 65,852 54,663
════════ ════════ ════════

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 2022

11a. Analysis of governance costs

Total 2022 Total 2021
£ £
Independent Examiners Fees 4,032 4,032
Bookkeeping-Payroll 9,719 2,295
DBS 0 631
Bank and Other Charges 0 451
AGM/Board Meeting Expenses 825 1,465
Legal and Professional Fees 13 103
──────── ────────
14,589 8,977
════════ ════════

12. Net income

Net income is stated after charging/(crediting):
2022 2021
£ £
Depreciation of tangible fixed assets 3,306 1,861
Operating lease rentals 40,943 30,047
════════ ════════
13. Independent examination fees
2022 2021
£ £
Fees payable to the independent examiner for:
Independent examination of the financial statements 4,032 4,032
═══════ ═══════

14. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

2022 2021
£ £
Wages and salaries 117,261 64,809
Social security costs 4,286 3,132
Employer contributions to pension plans 927 –
───────── ────────
122,474 67,941
═════════ ════════

The average head count of employees during the year was 6 (2021: 2). The average number of full-time equivalent employees during the year is analysed as follows:

2022 2021
No. No.
Number of staff 6 2
════ ════

No employee received employee benefits of more than £60,000 during the year (2021: Nil).

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 2022

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 £56,060 (2021: £48,330).

15. Trustee remuneration and expenses

During the year Adam Thomas and Johny Brown, both had expenses to the value of £265 and £22 respectively, being reimbursed to them to cover the trustee meeting costs (2021: Adam Thomas £461 and Andrew Denney £13).

16. Tangible fixed assets

Fixtures and
fittings
£
Cost
At 1 April 2021 5,584
Additions 4,337
───────
At 31 March 2022 9,921
═══════
Depreciation
At 1 April 2021 1,861
Charge for the year 3,306
───────
At 31 March 2022 5,167
═══════
Carrying amount
At 31 March 2022 4,754
═══════
At 31 March 2021 3,723
═══════

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 2022

17. Debtors

2022 2021
£ £
Trade debtors 51,479 50,742
Prepayments and accrued income 37,380 26,084
Other debtors 3,528 4,416
──────── ────────
92,387 81,242
════════ ════════
18. Creditors: amounts falling due within one year
2022 2021
£ £
Bank loans and overdrafts 13,333 –
Trade creditors 4,773 300
Accruals and deferred income 15,000 4,405
Social security and other taxes 2,782 8,018
──────── ────────
35,888 12,723
════════ ════════
19. Creditors: amounts falling due after more than one year
2022 2021
£ £
Bank loans and overdrafts 53,333 –
════════ ════

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 2022

20. Pensions and other post-retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £927 (2021: £Nil).

21. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
At At
1 April 2021 Income Expenditure Transfers
31 March 2022
£ £ £ £ £
General funds 114,394 200,860 (282,028) – 33,226
───────── ───────── ───────── ────
─────────
114,394 200,860 (282,028) – 33,226
═════════ ═════════ ═════════ ════
═════════
At At
1 April 2020 Income Expenditure Transfers
31 March 2021
£ £ £ £ £
General funds 36,943 361,762 (284,311) – 114,394
──────── ───────── ───────── ────
─────────
36,943 361,762 (284,311) – 114,394
════════ ═════════ ═════════ ════
═════════

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 2022

21. Analysis of charitable funds (continued)

Restricted funds

Restricted funds
At At
1 April 2021 Income Expenditure Transfers
31 March 2022
£ £ £ £ £
Hospital Programme – 55,047 (27,931) 9,400 36,516
Community Programme 26,618 233,860 (113,369) 37,600 184,709
Lloyds Bank Foundation 20,000 – – (20,000)
–
Tudor Trust 27,000 – – (27,000)
–
──────── ───────── ───────── ────────
─────────
73,618 288,907 (141,300) – 221,225
════════ ═════════ ═════════ ════════
═════════
At At
1 April 2020 Income Expenditure Transfers 31 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
════════ ════════ ════════ ════
════════

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 - The funding was to facilitate salary costs.

Tudor Trust - The funding was 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 2022

22. Analysis of net assets between funds

Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Tangible fixed assets 4,754 – 4,754
Current assets 117,693 221,225 338,918
Creditors less than 1 year (35,888) – (35,888)
Creditors greater than 1 year (53,333) – (53,333)
───────── ───────── ─────────
Net assets 33,226 221,225 254,451
═════════ ═════════ ═════════
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)
Creditors greater than 1 year – – –
───────── ──────── ─────────
Net assets 114,394 73,618 188,012
═════════ ════════ ═════════
23. Analysis of changes in net debt
At
At 1 Apr 2021 Cash flows 31 Mar 2022
£ £ £
Cash at bank and in hand 115,770 130,761 246,531
Debt due within one year – (13,333) (13,333)
Debt due after one year – (53,333) (53,333)
───────── ───────── ─────────
115,770 64,095 179,865
═════════ ═════════ ═════════

24. Operating lease commitments

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

2022 2021
£ £
Not later than 1 year 40,690 41,220
Later than 1 year and not later than 5 years 11,760 24,450
──────── ────────
52,450 65,670
════════ ════════

25. Post balance sheet events

There are no post balance events to disclose.

26. Related parties

During the year £1,586 was paid to M Vincent (trustee) form mentoring costs, this equates to less than 1% of the total mentoring costs of the charity. Apart from those the only other related party transactions was for the reimbursement of trustee expenses, as disclosed in note 15. There were no other related party transactions during the year.

Jackson Nicholas Assie Limited Chartered Certified Accountants