MUSC THEfiAPY WORKS MUSIC THERAPY WORKS COMPANY UMITED BY GUARANTEE NO. 6663759 REGISTERED CHARITY NO. 1126584 REPORT AND FINANCIAL STATEMENTS FOR THE YEAR TO 31. AUGUST 2021
Music Therapy Works Annual Report and Finanoal Statements for the year ended 31" August 2021 The Music Therapy Works Model of Music Therapy Muslt therapy is a state registered professlon go¥emÈd by the Health and Care Professlons Countil. The MTW Model of Music Therapy is an eviden based and outcomes led InteNentson delivered by specialist rn1¢ therapists who prartise withln a dèar psychotherapeutlc framewor Thls enables the work to go bèyond a simple musrcal inter¥entlon. provldlnE d•rlty and support in processin8 trauma. attachment, berèavement, developmental Issues. Ilfe Ilmltlng Illness andlor mental health con¢ern> The Muslc Therapy Works model Is often used as a lèad ongte health provlslon Ilnking to both tntemal and external agencles. Strurtured musk prowdes familiarity. a sense of safety, cOnneLon and rnutlne. MTW Mu¢ therapy Is accesslble to every Indl¥idual: musical ability is ne¢essary. How Does MusicTherapy Work? Music therapy engages and connects people. It encourages 50clal and cornmunicatlon skills, emotional expression and cognition. tt ha5 a profound neurological impact which as5iStS physlcal and psychological thange. Sound 15 a physlcal vibration resonati wtth every Individual regardless of cir(urnstances. Muslc therapy creates a Spa in which feelings can be processed and new ideas formed, uslng both verbal and non-verbal clinlol techniques. MTW work with vulnerable dients, whose ages Mge from 2-3 years old to the very elderlyi provldlng dinkal interventior6 which asslst with mental health and Well-bei attachment difficulties; bereavement issues; social and emotional issues: acquired brain injury; dementia; and children and adults at the end ot lrfe.
Music Therapy Work5 Annual Report and Financial Statements for the y&v ended 31- August 2021 CONTENTS Page Referen and administrative details Report of the dlrertors Independent examinerf5 report io Statement of financial activbties li Balance sheet 12 Notes to the financial statements 13-18
Music Therapy Work5 Annual Report and Financial Statements for the year ended 31- August 2021 REFERENCE AND ADfvIINISTRATIVE DAlLs DIRECTORS: John Clemson MBE Ichairl Allan Middleton Craig Prof John Whenham Andrea Hob Sandra Bristoll Sue Ayres Carrie Churnshle (Appointed 13 December 20211 COMPANY SECREfARY: Sophia Parker REGISTERED OFFICE: 5 Deansway Worcester WRI 21G CHIEF EXECUTIVE: Simon Murphy REGISTERED NUMBERS: Company: 6663759 Charity: 1126584 INDEPENDENT EXAMINER: Mr L E Parkes. FCA Parkes & Co 5 Crondal Ptsce Ed8baston Birmingham B15 2LB BANKERS: Unlty Trust Bank PO Box 7193 Planetary Road Willenhall WVI 9DG United Trust Bank One Ropemaker Street London EC2Y 9AW Redwood Bank The Nexus Building Broadway Letchworth Garden City SG6 3TA
Music Therapy Works Annual Report and Financial Statements for the year ended 31" August 2021 REPORT OF THE OIREcfoRS The 1CtorS presertthe¥rreport wrth thefinancial statements of the comp3nyfor the year ended 31 Au8USt 2021. The financial Statements have been prepared In accordance wr(h the accounting policie5 setout In Note l and comply with the Charftvs Memorandum & ArtlclÈs of Assotiation, the Companies kt 2006 and the provisions of 'Accounting and Reporting by Charltles: Statement of Recommended PrattKe applitable to charities preparing their accounts in accordanee withthe Financial Reportingstsndard appIable Inthe UKand Republlcof Iland IFRS 1021 (effective for accountin8 periods commencing from l January 20191.- srRucfuR£, GOVERNANCE AND MANAGEMENT Govèrning Dotumènt The Charity Is a charitable G)mpany limrttd by guaranteelncorFrfH3ted oft 4 August 2008. The CharV was established under a Memorandum of Associatson that established the objects and powers of the Charftable company and is governed under ItsArticlesof A550ciatloTr asamended byspeclal 50$UtIOn$dated 13 May 2019 and 15Junè 2020. The Charlty re8lStered wlth the Charity CommL%slon En8land and Wales on 6 NLwember 2008. The d1ctors, who are also tfustees, durfngthe perhjd under revlew. re.. John Con M8E Ichalrl Allan Middleton Craig Profjohn Whenham And¥ea Howl Sandra Bristoll Sue Ayres The company Is IlmRed by 8uarante• and therefore no director has any Interest in the Shafe tapitsl gf ihe company. The dlrectors a usually appolnted at the Annual General Meetln8to eThSUthatthÈ 8oard represents a cr0$5 Sectlon ofthe cornrnunity. The dlrectors are sponSIble for finandal controls ond accounts: for developlng and overseelng a reserves polty,. for ensuring that all procedures and polkles adhere to their legal requirements as empbyers- for reviewing rfsk management of the organisation,. to ensure all aspects of charity and tompany law are fvlty and propedy adhèred to apd 8enerally protett the chariws property. srATEMENT OF TRusfEES' RESPONSIBILMES Company law requi$ the TTVStees to prepare accounts that glve a true and fair view of the state of affalrs of the charitable company at the end of the financial year and of the charItsb companws 5urplu5 ordeflck for the year. In doing50. the Trustees are required to.. Selett suitable accounting polkles and applythem consistently: Make judgments and estirnate5 thatare reasonableand prudent- State whether applicab accountlng standards and ststvnents of recrynmended practice have been followed. subject to any material departures dfjsclos and explained in the accounts: anfl Preparethe accovnts on the8oingc0nrn basis unless it inappropriateto presumethatthe ¢harty will continue In bu&ness. The Trustees are responsible for maintairting properact<wJntingrecords which disclosewtth 3$Onable accurdcyat any tlme the financial position of the Charitab Co[nY and which enablethem to ensurethat the accounts compty with
Music Therapy Works Annual Report and Financial Statements for the year ended 31- August 2021 the CompaniesAtt 21X)6. TheTTU5tee5 are a150 Tesw)n5iblefOrsafeguard theassets of the charitable cornpany and hencefortsking reasonable srepsfor the prevevtÈon and detecti of fraud and other irregularf(ies. M15510N STATEMEP The o¥erall mb$lon of Musi¢ Thernpy Work5 i& To delNer an excellent and comprehensi¥e ns therapy sern In a cohesNe and localfy appropriate manner. accesslble to all who need IL To develop and supportthe widest possible application of music thewapy. ro malntsin the hlgh quèltty olthe theTrpy provided through regular moAiiorln8 and review. To bè retogrtlsed asa leading provlder of muyctherapy. Toujntrlbutè to muslc therapy provlsbn, tr31nfr and searCh. OBJEcfivES AND A1V[rIEs The principal objective of Music Therapy Works is to provlde muslc therapy for chlldren and adults of all ages wlthln local communltles in the Heart of England area. The chartty achleves rts objectNe through the provlsion of communlty-based muslc therapy servlcefor both chlldren and aduks. The maln objetts, as shown In the Menradumand Artkles of Assoclatlon, are: The therapeutlc use of muslc for the rellef of physKal ènd mental Illness and dlsablllty, the allevlatK)n of devektpmentsl, enlOnal. al. and behavbural dlftlcultle5 and the protectbn and prorrotSon ofRood he?h. Thè prornotion of the use of muslc therapy by other 0$tIOns irttludln8 Thot Ilmlted to hospttals. prisons, h95pke5, and schOS. The PrOr¢tIOn and publlcatlon ol farth intothe th*raUt use of musk. The educatlon gf members of the publk concemine music as a [n5 of therapy. The estsbllshment. destlopment ond ust of health professlons councll approved traiftlng tourses to traln indfviduals as music therapists. For the future. the directors will continue to seÈk to expand the prv•lslon of mustc therapy and a5soaated aCt((leS throu8hout the Heart of England regkgn. PUBLIC BENEFIT The trustees conflrm that they have cornplled wr(h the duty in the Charities Act 2011 to have due re8ard to public benefit guidance published by the Charrty Cornmission. MUSK Therapy Works promote5 the advancement of music therapy and is open to the majoftty of the publlc in need of MUstherapy.
Music Therapy Works Annual Report and Financial Statements for the year ended 31" August 2021 FINANCIAL REVIEW The charity had a surplus of Income above expenditure on the unrestrirted lunds of £12.992 during the year. The balance on the unrestrkred fvnds at 31 Au8USt 2021 wa5 £178.770. The b3nCe on the restricted fundswas £5,627. REsfRicfED FUNOS The restritted funds have been donated to the Charityfor specrfic purposes and are ILsted In note li tothe accounts. RESERVES POUCY The Board has agreed as policythatthefree reser¥es of the orr4nisatlon, tlefined as netCUFrent355ets that are nelther restricted nor deslgnated for S[ffiC purposes, should be SUfflent to piovide a reasonable working balance to meet commitments when they be¢oft* due whi1 reco8ni5in8 the possible delays In recelpt of fee Income due. It is Cgnsldered that, gfven that 85% of annual iumover i% use(1 to fvnd 5tsff costs. the reserves target Is best eXpSSed Sn terms of payroll months. The Board has assessed that, under current clrcumstsnces, the free reserye5 should be the equivèlent of 6 months, payroll costs. Uslng the average payToII costs from the 2021n022 bud8et, free reseryes should be In the reglon of £124,257. At 31 August 2021. non-deslgnatrd free reserves lexcludlng functK)nal tangible fixed assets) stood at £177,702. The stated
rategy hastherefore been achlLvetl this ¥r.
The Board5 reserves pollcy also requirts th• Trusteès to fe3sse5s any deslgrtated funds annualty when revlewlng its reserves. $0 that funds are needlessty deslenated and excluded from the olculatlon of free reserves. FINANCIAL RISK MANAGEMEKr The Charfty fInan5 its operatlons thrtyjgh the genèrdtk•n of cash from operatln8 actwities and has no Interest rate exposureon flnanclal Ilabiltties. Liqurfity rlsk b managed through for*astJn8the futu cash flow requiremeftts of the Charlty and maintainlng sufflclent cash at bank
Music Therapy Works Annual Report and Financial SLttements for the year ended 31- August 2021 REPORT FROM THE CHAIR l am pleased to present our annual report forthe year ended 31 August 2021. Our Achievements in 2021 Music Therapy Our talented tearn of therapists delivered 5.277 hours of music therapy from I" September 2020 to 31. August 2021. The was a strong focus on schools and colleges that supwrt children and young adults with Special Education Needs and Disabilitles, athough the charity Wofked in severdl other schools too. Mu51C therapy was also provided to indtviduals with Profound and Mu1ple Learning Disabiltties, as well older people In one ¢are home. In May a Purchaser Satisfartion Suryey was conducted. There were no negative or critlcal responses, with the majorfcy reflected by the followin8 qUQtes' "X is extremely flexible and adaptable to the needs of our school and puplls. She Is able to bulld Positive relationships qulckly wlth complex and often dlfficult to reach children". has really gone above ènd beyond in this role. and she is an extremely valuable member of our team.. "Z also Introduced online musictherapy drir lockdown to scyne of the students that was brilliant and well received by the families". The Covld Pandemlc The charity continued the process of relntroduclng tace-ttrfa seNices followingthe restrictions imposed durin8the firyt lockdown. was a gradual phased prO5S wlth risk assessments being undertaken, therapists regularly takrng lateral flowtests ILFTS), being vaccinated. and personal protective equipment IPPEI being used as and when required by purchasers and clients. As the year progressed therè were occasional interruptions to the delNery of music therapy caused by outbreaks of the virus that were well managed by the team of therapists. One Consequence of the pandemic was the introduction of virtual, online music therapy. Virtual song- making sessions were delSvered In association with St Martin's in the Bullrin& Bimiingham. Wirtual community drumming was made posslble with financial sUPPOrt from the Baron Davenport Charity, and the Edward Gostling Founilation. This is an area of our actNities that has the w)tential to grow as enquiries for these Services contlnue to be recetved. Human Resources This year saw the departure of our long standing and widely respected Chief ExecutNe Officer ICEOI, Eleanor fingle on 31 December 2020. Eleanor wa5 the chariW5 first CEO in 2C¥)8 having been a hugely influential figure in the establishment of Music Therapy Works IMTWI. She is now the Chair of the Brf(15h Association of Music Therapssts IBAMn. Laurie aarke took over the reins as CEO on l January 2021 but unfortunately this proved to be a short-INed appointment and he $[gned on 30 April 2021. A recruitment process was initiated. and one of our long-standing therapists, Abby Stain. stepped up as interim CEO from
Muslc Therapy Works Annual Report and Finanoal Statements for the year ended 31" August 2021 l May to 31" AuBUSt From a strongfield of candidates. we were delightsd to appoint Dr Simon Murphy who try)k up post a5 CEO with effett from I" September 2021. trus HR was appointed in May 2021 to provide ad and support to the charity. One of their earliest actions was to draft new contratts of employment for all our staff. A recurring challenge has been the availability of qualrfied mLbSiC therapists. This is a problem that continues to be experienced across thè whole music therapy professlon. The tharhy maintains 8ood relations with the institutions that provide the Masterfs degree in music therapy and as a re5utt regular employs those recent qualified in their first professional roles. A keyfeature of MTW is that all therapists are on contracts of employment which means that they receive a range of benefits. For all new staff this also means that they benefit from our strong peer support netsY0 that includes therapists with many years of experience and expertise. Govemance There were no resignations or new appointments of Trustees during the year. Trustees continue to actively seek to increase the diversity of the Board In 202V22 to better reflert the varied individuals and communities that the tharity supports. Finance Income for the year was almost exactly as forecast noltSnlw¥ the challenges of the pandemi4 at £277,378 a8ainst an expected £277,457. Expènditure was lower than fr)recast with the charity recording £10,833 surplus by year end. The Future The charity has a robust and reallstic 2021122 Buslness Han in place. The Plan's tsrgets Include further developing staff and thèir health and wellbeing, along with creating more capacity to meet the Contiftuing new demand for our services; increase dNersity and the delivery of seNi¢es to underrepresented groups; create an objective and empiric31 tool to assess the impart and value of mu51C therapy- maintaln financial stabllity and sustainability- securing grant funding to upgrade and standardise IT hardware and 50ftware: diversifying service delivery beyond education. along with the increase in the ability of the charity to provide Neurologlc Music Therapy- and continuing to consuft wtth purchasers. SeiCe users. anil stakeholder5. The CEO will continue to p8rti¢ipate in the online Prowder Forum meetings being run by the British Association of Music Therapists IBAMn- This report has been prepared in accordance with the special provi%ions for small companies under part IS of the Companles Act 20C6. Signed on behalf of the Board John Clemson- Chalr 16th March 2022
Music Therapy Works Annual Report and Financial Statements for the year ended 31" August 2021 INDEPENDENT EXAMINEfS REPORTTOTHETRusfEES OF MUSICTHERAPY WORKS I report on the accounts of the company forthe yearended 31Jt August 2021. which are set on pages 11 to 18. Resperti responsibilities of trustet and examiner The trvstee5 (who are also the directors of the company for the purpose of company lawl are responsible for the preparatioll of the #ccounts. The trustees consider that an audit is not requi forthis year under section 144(21 of the Charities Act 2011 (the 2011 Attl and that an independent examrna¢i¢)n is needed. Having Satisfied Myself that tbe charity ts riot subjeLt to audit under company law and 6$ ell8ible for Independent exarnination. tt is my responsibility to.. examlnethe accounts under seCtn 145 of the 2011 Act: to follow the procedure5 laid down in the 8enerzl Direction5 8tven by the 0ritY Commission under Section 145151 Ibl of the 2011 A¢t- and to state whether particular matters have corrto myattention. sls of 5ndependent emamlnees report My exarnlftatlon was carrled out in attordante with the general Direttlon$ 8lven by the Charlty Ctsmmlsslon. An examlnatlon Includes a revlew of the accountln8 records kept by the Char and a comparison of the accounts presented wRh those records. It also Includes consideration of any unusual ttems or dlsclosures In the account5, and seeklng explanations from you a5 trustees concernin8any sueh matters. The procedure5 undertaken do not provide all the evldence that would be Wuld an audtt and consequently no oplnlon ts glven as to whether the accounts psent a-tfue and falr VI and the report Is Ilmtted to those mattefs set ¢wt In the statement below. Independent Èxamlntrfsstatement Irb connectlon wf(h myexamln*lon, no matter has come to my attentkn: 111 which 8ives me reasonable cause to beltve that in any material 5pt the requirements: to keep accounting records in accordarKe with section 386 of the Comparsies Act 2006.. and to prepa accounts which accord with the accounting records, comply wth the actountln8 requirements of sectlon 396 of the Companles Act 2006 and the method5 and pwlndples of the Ststement of Recommended Prathice.. Accounting and Reportin8 by Charities have not been met; sy 121 to which, in my oplnion. attentlon 5houfd be drawn in orderto enable a proper underMandln8 oftheaccounts to be reached. L E Parkes KA Chartered Accountant Parkes & Co 5 Crondal Place, Blm)Ingham B15 2LB Oate.. 10
Music Therapy Works Annual Report and Financial Statements for the year erKled 31" August 2021 STATEME1 OF FINANaAL AcnviTIES INCLUDING INCOMEAND EXPENDITURE ACCOU FOR THE YEAR ENDED 31 AUGUST 2021 Notes Unrestrirted Restricted Funds Fund5 2021 Total 2020 Total Funds INCOME FROM: Donatlons 5A17 8,217 1,571 Charitable Activities 241370 241.370 187,305 Investments 1327 1,327 1,837 aRS Grant 61,475 TOTAL 274378 277.378 252.188 EXPENDffURE ON: Charitable Activitles 261386 4,559 263,873 TOTAL 261.986 4.559 266.545 263,873 NEf INCOMEIIEXPENSE I22 (2,1591 10,833 111,6851 RECONCILIATION OF FUNDS Totsl Funds Brou8ht Forward 165,778 7,786 173,564 185,249 TOTAL FUNDS CARRIED FORWARD 178.770 5,627 184.397 173.564 The ststement of fina131 activities includes all gains and losses recognised in the year. All income and empendtture derive from continuing actNities. The Statement of Financial ActÉvities also comrAies wrth the requirements for an In¢ome and Expenditure Account under the Companies Act 2(K6. 11
Music Therapy Works Annual Report and Financial Statements for the year ended 31- August 2021 BALANCE SHE AS AT31 AUGUST2021 2021 Total Funds 2020 Total Funds Notes FIXED ASSETS Tangible Assets 643 643 Total Flxed Assets CuRRETr ASSErs Debtors Cash at bank and In hand Totsl Current Assets 12.742 174.962 187,704 2.788 173.616 176,404 CREDoR5 Amounts falling due within one year 4.375 Net Current A55ets 183.329 184,397 172,921 173,564 TOTAL NEf ASSETS THE FUNDS OF THE CHARrrf Unrestricted funds Restricted funds io li 178.770 5.627 184.397 165,778 7.786 173,564 Total Charfty Fund5 The Cornpany Is entitled to the exemptlon from ihe aud quIre1r*nt contslned in sectlon 477 of the Companles Act 26forthe year ended 31 August 2021. The members have not requId the company to obtaln an aud of itsfinartclal statements forthe year In questK)n In accordance vAth settth 476of the Compantes Act 2(K6. The Trustees acknowledge their responsibilthes for: al complying wi(h the requifements of the Act with respect w accounting ordS and bl preparlng financial ststents whKh gfve a trne and fairview of the state of affairs of the company as at the end of the financial year and of its intomine $Our and application of resources. including $ income and èxpenditure. for the financial year in accordance with the requlrements of sectlons 394 and 395 and which otherwlse compty wlth the ¥equirements of the Companles 26 relatinkto finaTrual Statements. so fèr as applKable to the cornpany. These accounts have been prepared in #Ccixdance with the provision5 applKabletO Small cornpanles subject to the small companies, regirne and in accordance with FRS102 SORP. Approved by the trustees on 16th March 2022 and Sied on their behalf by: John Clemson- Twstee Company Registration No. 6663759 Andrea Howl-Trustee 12
Music Therapy Works Annual Report and Frnancial Statements for the y&ar ended 31" August 2021 l. Accounting Policies Char Information MusicTherapy Works is a private company limited by guarantee incorporated in England and Wales. The regISted office is 5 Deansway, Worcester. WRI 2JG. Basis of Accounti The financial statements have been prepared in accordance with the chariVs atcounting polities and comply with the Charitvs Memorandum & Articles of A550ciation, the Companies Art 2006 and the provisions of "Accounting and Reporting by Charitie5'. Statement of AOrnMended Practice applicable to charitiès preparingtheir accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Irdand IFRS 1021 leffective l January 20191~. The Charity is a PLtbllc Benefft Entity as defined by FRS 102. The Charity ha5taken advants8e of the provisions in the SORP for ¢harities apptying FRS 102 Update Bulletin I not to prepare a Statement of Cash Flows. The financial statements are presented in Sterlin& which is the functional currency of the charity. Monetary amounts in these financlal ststements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accountlng pollcles adopted are set out below. Goln Concern At the time of approving the financial statements. the Trustees have a asonable expectation that the charity will have adequate resources to continue in operational existence for the foreseeable future and that there are no material rlsks or uncertainties which would ne$sItate departure form preparing accounts under the going concern principle. Thus. the Trustees continue to adopt the going concern basis in preparing its financial ststements. Incoml Resources Income is included in the Statement of Finanaal Activities when the charitable company is legally entitled to the income, when it is probable that the income will be received and when the monetary value of the in¢ome can be measured wtth Sufficient reliability. Artlvltles Irorne from therapyfees, teaching and workshops are included in incoming resources in the period in which the relevant event tskes place. l)ongtions gnd Grorf5 Income from donations aNI grants is induded in incoming resour¢e5 when rl¥able, except as follows: where donor5 specrfy that donations arKI grants given to the charity must be used in future accounting periods, the income is deferred until those accounting periods- when donors impose conditions that have to be fulfilled beforethe charity become5 entitled to use such income. the income is derred and not induded in incomin8 resources until the prOndItiOnS for use have been met 13
Music Therapy Works Annual Report and Financial Statements for the year ended 31" Augurt 2021 when donors specify that donations and Erants a for particular restri¢ted purposes, which do not amount to pre<onditions regarding entitlement. thi% income is included in incoming resour5 of restricted funds when receivable. Resources E nded Resources expended are induded in the Statement of Flnandal Activities on an accruals ba5iS. inclusive of any ValL¢e Added Tax that cannot be recovered. Charltèble actfvltles Include expendlture assoclatrd the provlsion of music therapy and both the direct costs and support costs relating to these activities. Governance costs include the Incwrred In the governance of the charity and its a55ets and are primarily associated with constitutional and statutory requirements. Tan Ible Flxed Assets Tangible Fixed assets are Initial measured at cost and subsequently measured at cost or valuation, net ol depreciation and any impairment losses. Assets with an individual value of £500 or more are capitalised on the balance sheet. Depreciation Is provbded at rates calculated to write off the cost less estimated residual value of ea¢h asset over its expected useful life as follows: Musical instrumer Office equipment 4 years 3 years Depreciation Is not provided on assets whkh have not yet been brought into use. Pension Costs The charity operates a defined contrfbutlon pension scheme for employees. The assets of the scheme are held separatelyfrom those of the charity. The annual contributions payable a charged to the Statement of financial activities in the periotl to which they relate. Fund Accountl Funds held by the charity are either: unre5trirted general fvnds - these are funds which can be usetl in accordance with the charitable objects at the dscretion of the tru5tee5- desAonotedfvnds- these a unrestricted funds designatèd by the trustees for a particular purpose; restrirtedfvnds- these are funds that Can only be used for particular restrirted purposes within the objects of the chartty. Restri¢Dons arise when specified by the donor or when funds are raised for particular restricted purposes. 14
Music Therapy Works Annual Report and Finanaal Statements for the year ended 31" August 2021 FSnancial Instrnments The tharity has electedtoapplythe prOvisn5 of Section Il'Basic Financial Instruments, and Section 12 '0ther Financial Instruments Issues. of FRS 102 to all of its financial instruments. Financial instruments are recognised ift the Charrvs balance Sheet when the charity becomes party to the contractual provisions of the instrument. Financlal assets and liabilities are offset, wtth the net amounts presented inthefinancial Statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis orto realise the asset and setde the liability simultaneously. Bosk)Ynon¢lol4ssets Basic Financial assets, which include debtors and cash and bank balances, are initially measured at transa¢tion price irtcluding trdnsartion costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable withln one year are not amortised. 8oskfinontiol liobllltles Basic financial liabilities, Includlng creditors, are inf(ially CognIsed at transaction prlce. Financial liabllities classified as payable within one year are not amortised. Trade creditors are obligations to pay for goods or Servi that have be acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabllities if payment Is due withln one year or less. If nol they are presented as rv)n-current liabilities. Trade creditor5 are recognised initialty at transaction price and subsequently measured at amortised cost using the effe¢tfve interest method. Derecoqnltlon olfinancljlllobllltles Finanekal liabilities are derecognised when the chariWs contractual obllg*ions expl of are discharged or cancelled. lflcant Jud ement Estimat The preparation of the finonciol statements requires management to make judgements, estimates and assumptronsthataffertthe amounts reported. These estimates and judgements are continually reviewed and are based on experience 3nd other f3rtor5. induding expectations of future events that are belleved to be reasonable under the arcumstances. 15
Music Therapy Works Annual Report and Financial Statements for the year ended 31" August 2021 Totsl Funds Totsl Funds 2020 nds Funds 2021 2. Income from Charltable A(tlthles MusitTherapy Fees 241370 241370 187.305 3. Inb*stmÈnt IntomÈ Dewsit Accowrt Interest 1327 1327 1.837 4. Governrnent Grants Coronavlfusjob Retenth)n Scme Grant 26.464 26.464 61.475 5. Charltsble Aalvltles Costs ort I Z021 Yotsl 2020 5ètIeS & NI INotÈ 61 Qther5tsff and Equipment Costs Admlnlstratk)n Costs 20J.120 7,751 49964 247,241 9,445 7,187 263.873 7,751 8,710 266,545 8,710 58,674 207A71 The Independent Examlner recee £550 Ilncludin8VATI in respect of examination fees12020.' £5001. 6. Staff Costs 2021 2020 Wages & Salarles Social Security Costs Pension Costs 234,950 10.546 230,219 12.461 4,561 247.241 250.084 Totsl remuneration paid to key management personnel duri theyear was £28.75012020: £27,162). During the year, the Charty Èmployed 7 fulltime equivalent staff12020= 71 of which there was 112020: 11 administrative 5tsff and 612020= 61 theTrpy Staff. None of the direttors received any emolument or reimbursement of expenses in respect of their services as Trustees of the charrty. No indmdual received emduments equal to. or in e55 of, £60,CW. 16
Music Therapy Works Annual Report and Financial Statements for the year ended 31" August 2021 7. Fu(ed Assets MusKal Instruments ui Cost at I September 2020 Additions 2.673 890 4,082 890 4,972 Cost at 31 August 2021 3,563 Depreciation at I September 2020 Charge for the Year Depreciation at 31 August 2021 1.365 2,074 421 2.495 3,439 465 3,904 Pjèt Book Value at 31 August 2021 1.068 Net Book Value at 31 August 2020 599 643 8. Debtors: amountsfalllng due wlthln one ar 2021 Debtors for Therapy Fees Accrued Income 11.937 1,530 1.258 2.788 12,742 9. Credltors: amount tdlllng due withirt year 2021 2020 Taxation and Social CuritY Other Creditors Accruals Deferred Sales Income 3.351 109 621 294 4.375 2.871 52 17
Music Therapy Works Annual Report and Financial Statements for the year ended 31" August 2021 10. Unrestrftt¢d Funds Ger*ral FuThl 178.770 165,778 11. Re5trirted Funds Sub5Wi5ed Intoming Rewurtes Resources Expended Net Inflow/lOutflowl of Funds Funds at i Septemter 2020 Funds at 31 Au8USt 2021 1759 12.1591 7.786 5.627 4559 12.1591 7.786 5,627 2.361 113611 10.147 7.786 12. Anaty555 of Net Assets between Funds nds Fvnds Fund B•lances •t Awtt 31. 2021ore resyeserrted ty. Tan81e5sets CurrentAssets 643 172.921 173.564 177.702 17&770 5.627 5.627 183.329 184.397 13. Related Party Transartlons There were no dis¢losable related paity transactlons durln8 the year12020- None). 14. Capital Commitments Amounts contratted for but not proviijed in the financial statements amounted to £012020.. £01. 15. Taxation Muslc Therapy Works is a registered charity and. therefore, ts not liable to intome tax or corporation tax on income and gains derived from its charitable activr(ies. as they fall within the various exemptions avallable to registered charities. 18