## 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:
- Recognition as national leading authority on specialist music services for mental health Build music industry support to raise profile within the industry/wider public Broker external research support to validate & showcase our unique impact Adapt effectively to changing mental health needs in the wake of COVID19
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
- 21 -
_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_
- 22 -
## **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_
- 23 -
## **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_
- 24 -
## **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:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
- 25 -
_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
- 26 -
_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_
- 27 -
**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_
- 28 -
**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:
- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
- legacy income is recognised when receipt is probable and entitlement is established.
- income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
- income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
## **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:
- expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
- expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
- other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
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_
- 29 -
**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_
- 30 -
**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_
- 31 -
**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_
- 32 -
## **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_
- 33 -
**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_
- 34 -
## **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).
- 35 -
_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**
- no remuneration or other benefits from employment with the charity or a related entity were
- received by the trustees; or
- one or more trustees has claimed expenses or had their expenses met by the charity.
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|
||`═══════`|
- 36 -
_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_
- 37 -
## **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_
- 38 -
**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_
- 39 -
## **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_
- 40 -