MUSC THEfiAPY wofiKS MUSIC THERAPY WORKS COMPANY LIMITED BY GUARANTEE NO. 6663759 REGISTERED CHARITY NO. 1126584 REPORT AND FINANCIAL STATEMENTS FOR THE YEAR TO 31" AUGUST 2022 Music Therapy Works Annual Report and Financial Statements for the year ended 31" August 2022 The Music Therapy Works Model of Music Therapy Music therapy15 a State reglstered profession governed by thè Health and Care Professions Council. The MTW Model of Music Therapy is an e¥idence based 3nd outcomes led inteNention delivered bv specialist music thernp15ts who prartise withSn a d&ir ￿Y(hotherapeUr1cframeWO This enables the work to 80 beyond a simpk musical inteThention. pro¥idln8 clarity and support in processlng trauma. attachmetrt. bereavement. developmental Issues. Ilfe limltlng Illness andlor mental hÈalth concerns. The Music Therapy Works model 15 often used as a lead ￿￿•t¢ heath pro¥l￿on linking to both Internal and extemal a£encie5. Structured muslc provldes familiarity, a sense of safety, ¢onnection and routine. MTW mu51c therapy Is accessible to every individual: no muslcal abillty is necessary. How Does Music Therapy Work? Muslc therapy en8a8es and connerts people. It encourages soclal and ¢ommunlcatlOll Skills, emotional expresslon and cognltlon. It has a protound neurological impatt which assists physical and psychological thange. Sound Is a physical vlbration resonating with every individual regardless of circumstances. Music therapy creates a space in which feelings can be processed and new ideas forrned, using both verbal and non-veTbal clinical technÈqiies. MTW work with vulnerable clients, wlM)se age5 range from 2-3 years old to the very elderly, providing dinical inte￿entionS which assist with mentsl health and well-being* attachment difficulties-. bereavement issues; 9xial and emotional issues; acquired brain injuryi dementia; and children and adults at the end of lrfe. Music Therapy Works Annual Report and Financial Statements for the yw ended 31" August 2022 CONTETrirs Page Reference and administrative detsils Report of the dlrectors Independent examinerfs report io Statement of financial activities li Balance sheet 12 Notes to the financial statements 13-18 Music Therapy Works Annual Report and Financial Statements for the y&ir ended 31" August 2022 REFERENCE AND ADMINlSfRATIVE D￿Alls DIRECtORS: John Clemson MBE (Chair) Allan Middleton Craig Profjohn Whenham Andrea Howl Sandra Bristoll Sue Ayres Carrie Churnside (Appointed 13.12.211 COMPANY sEcR￿ARY. Sophia Parker REGISTERED OFFICE: 5 Deansway Worcester WRI 2JG CHIEF EXECUTIVE: Simon Murphy REGISTERED NUMBERS: Company.. 6663759 Charity: 1126584 INDEPENDENT EXAMINER: Mr L E Parke5. FCA Parkes & Co 5 Crondal Place Edgbaston Birmingham 815 2LB BANKERS: UnityTrust 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 Cty SG6 3TA Music Therapy Works Annual Report and Financial Statements for the y&4r ended 31- August 2022 REPORT OF THE DIREcroiis The directors pre5enttheir ￿pOrt wtth the financial ststements ofthe companyforthe year ended 31 Au8ust 2022. The financial sratements have been prepared in accordance with the Chariws accountirsg policses setout in Note l and comply with the Charivs Memorandum & Artides of A$50ciation, the Companies Art 2006 and the provisions of "AccountSn8 and Rewrting by Charities= Statement of Recommended Practlce applicable to charities preparing their accounts In a¢¢ordan¢Èwfjth the Flnartcial Reportin8Standard applicable Inthe UK and the Republlcof Ireland IFRS 1021 leffertive for accounting periods comrnencingfrorn l January 20191." STRUCTURE, GOVERNANCE AND MANAGEMENT Govemln8 r￿cument The Charity 15 a charitable Cornpany limited by guarantee incorpordted on 4 August 2CQ8. The Charity was established under a Memorandurn ol A550ciation that estsblished the objects and ptswer5 of the charitable cornpany and 15 governed underits Articles of Ass¢xiation as amended by5pecial resolutions dated 13 May 2019 and IS June 2020. The Charity re8iStered wTrth the Charity Commission for England and Wales on 6 November 2008. The directors. who arè a150 trusteès. durlng the period uNler revlew, wère: John aemson MBE Ichalrl Allan Middleton Cralg Profjohn Whenham Andrea Howl Sandra Brlstoll Sue Ayres Carrle Churnsldè IAppointed 13 Decembtr 20211 The company is limited by 8uorantee and iherelore no director has any interest in the share capstal of the comp3ny. The directors are usually appointed at theAnnual General Meetin8 to ensure that the 8oard represents a cross section of the community. The directors are responslble for financial contro15 and accourts: for developi￿ and overseelng a reserves pollcy,. for ensurlng that all procedures and policies adhere to their le8al requirements as employers- for Teviewing risk managernent ol the organisation; to ensure all aspects of charity and company law are fully and properly adhered to and 8enerally protect the charitvs property. sTATEmETr￿ OF TRusfEES' RESPONSIBIUTIES Company law requires the Trustees to prepare actounts that 8ive a true and fair view of the state of affaSrs of the charitable cornpany at the end of the financial year and of the Charitable compan(5 surplu5 or deficit for the year. In doing 5ts, the Tru5tee5 are required to.. select suitsble a￿UntIng policres and applythem coffji5tentty,' make judgments and estimates that are reasonable and prudent: state whether appllcable accounting standan15 a￿j statements of recommended PrartI￿ have been followed, sublect to any matedal departu￿$ dis¢losed and eypiained in the accounts.. and prepa¢ethe at¢ountsonthe8tsing concern basis unless i14sinappropriateto presumethatthecharitywill continue In buslness. The Tru5teesafe responsible for maintairÈing properaccounting records which disdosÈwith ￿aSonable a¢curaLy atany tiffle the finavaal p05ttion of the charitable company arbd which enable them to ensure that the accounts comply with Music Therapy Works Annual Report and Financial Statements for the year ended 31" August 2022 the Companies Att 21￿. The Trustees are al￿ reSwns1b￿ for safeguardI￿the assets of the charitable company and hence fortskin8 reasonable steps for the preventton and detection of fraud and other irregularities. MISSION STATEMENT The L¥verdll mi55ion of MusicTherapyWorks Is: To deliver an excellent antl Comprehensive music therapy Servi￿ in a cohesive and IoGilly appropdate manner, accessible to all who need rt. To develop and supportthe ￿dest possible appltstion of music therapy. To rnaintain the high quality of the therapy provided throu8h re8ular monrtorin8 and rewew. To be recognised as a leadin8 provider of music thernpy. To conirfbute to muslc therapy provision. tf3inin& and reseèrth. 08JEcfivES ANO AcfiviTIES The principal oblecLive of Music Therapy Works is to provide mvslc therapy for children and adults of all ages within local communltles in the Heart of EoBland area. The charty achieves its objective throu8h the provision of comrnunity-based musl¢therapy servlce for both thlldren and adults. The main objects, a5 shown in the Memorandum and Articles ofAssodatlorn are.. The therapeutlc use of music for the relief of physiol and rnentsl Sllness and disability, the alleviatlon of developmental, emotlonal, st)dal. and behavlotsr31 drfficulties and the protertion and promoi¢on of 8ood health. The promotlon of the use of musk theTaPV by other organisatlons Indudln8 but not Ilrnited to hospitals, prlson5, hosplces. and schools. The promotion and publication of rè5Èarth into thetherdpe￿IC use of musk. The education of members of the public ¢onteming music a5 a of therapy. The establishmenL development and use of health professions counul approved training courses to traln individuals as musi¢therapists. For the flrture. the dirertgrs wlll continue to se*k to expand the prwlslon of muslc thwapy and associated activlties throu8hout the Heart of England reg¢on. PUBLIC BENEFrr The trustees confirm that they have complied vrith their duty in sertion 17 of the Charities Act 2011 to have due regard to public benefft guidance published by the Charty Commission. Music Therapy Works promotes the advancemeat of mu51C therapy and Is open tothe majority of the publbc in need of music therapy. Music Therapy WoA(s Annual Report and Financial Statements for the ended 31" August 2022 FINANCIAL REVIEW The charity had a deficit of income below expÈAdttU￿ on the unrestritted fund5 of £10.513 dyrin8 the year. The balance on the unrestricted funds at 31" Au8U5t 2022 was £168.25712021= £178,770). The balance on the restricted funds was £11.37212021.. £5.6271. REsfRICTED FUNDS The restrtcted funds ha¥e been donated tothe Charityfor specrfic wrpose5 and are listed in note 11 to the accovnts. RESERVES POUCY The Board has agreed as policythat the free feserves of the organisation, defined as net current a55et5that are neither restricted Tror designated for specific purposes, should be sufficient to provide a reasonable working balance to meet commitments when they become due whilst recognising the possible delays in receipt of fee income due. It is consiOeTed that* given that 86% of annual turnover is usetl to lund staff costs, the reserves tar8et is best expressed In terms of p8yroll months. The Board has assessed tha¢ under £urrent (iftUmstan￿, the free reserves should be thè equivalent of 6 months, payroll costs. Using the average payroll costs from the 2022n023 b￿8$eL free reseThes shryjld be in the reglon of £156.195. At 31 Au8VSt 2022, non-designated Iree reseryes lexcludln8 lunctlonal taA8lble flxed assets) stood at £167.733. The stated strategy has therefo￿ beèn achieved this year. The 8oard's reserves policy also reouires the Trusiees to rèassess any desi8n8ted funds annually when reviewln8 Its reserve5, SO that no funds are ntedlessty desSBnated and excluded from the calculation of free reserves. FINANCIAL RISK MANAGEMErir The Charity finances its operations through the 8eneration of cash from operatin8 actNrties and ha5 no interest rate exposure on financial liabilities. Liouidity risk is mana8ed through forecastin8 the future cash flow requirements of thè Charity and maintaining sufficient cash at bznk. Music Therapy Works Annual Report and Financial Statsments for the year ended 31" August 2022 REPORT FROM THE CHAIR l am pleased to present our annual report forthe year ended 31 August 2022. Our Achievements In 2021122 Music Therapy Our talented team of therapists deltvered 4,753 hours of music therapy from I" September 2021 to 31" August 2022. There was a strong focus on schools and college5 that support children and young adults with Special Education Needs and Disabilities, although the charity worked in several other schoo15 too. Music therapy was also provided to adults in supported livin& a small number of adults with acqtlired brain Injury, and individuals with Profound and Multiple Leamin8 Disabilities. Only limited progress was made to address the current hea￿ reliance on the education sector which was identified as an objective in the 2021122 Business Plan. New opportunities with a local hospital Trust, as well as with a large charity that builds and maintains retirement villages were developed. In May a Purchaser Sat15faction Survey was conducted. There were no ne8ative or critical responses, with the majority reflected by the following quotes.. "X is extremefy flexible and adaptable to the needs of our sthool and pupils. She Is able to build positlve relationships quickly with complex and often ￿t￿￿Ult to reach children". has really gone above and beyond in thls role, and she is an ext￿Me1¥ valuable member of our team.. also introduced online music therapy during lockdown to some of the students that was brllllant and well received by the famllies". All stsff tr31nlng tsrgets We￿ met durin8 the year. This has enSU￿d that our clients are being 5UPPOrted by highly qualified and skilled muslc therapists who are being kept up to date wrth the latest developments and thinking within the profession. All staff had an annual perfOrrnan￿ appraisal in the year, along with regular 1-2-1 meetings with the Chief Executive OffI￿r ICEOI. The Business Plan identrfied a 15% increase in the number of people supported each week by Music Therapy Works IMTWI on 31" August 2022 compared to that on 31" Au8USt 2019 li.e., pre the Coronavirus pandemlcl. The target figure of 265 was not achieved wth 179 people being supported weekly. This failure was due in part to staff illness, and more so to the historic high levels of staff tumover which led to the suspension of a number of contracts. 3 members of stsff left for music therapy posts in the NHS, 2 resigfted due to tncreasing travel costs. and I due to a family illne55 requiring relocation away from the MidlBnds. This was balanced by the recruitment of 3 staff in year. with a further 3 starting work in eaty September 2022. As a result of a successful fundraising campaign sufficient grant income was secured to purchase iPad5 and supporting equipment for all musi¢therapists. This has allowed many of the team to explore new method5 of music Creation which ha5 benefftted a large number of the charl￿$ clients. Music Therapy Works Annual Report and Financial Statements for the y&v ended 31- August 2022 Governance There were no resignations of Trustees during the year. Dr Carrie Churnside was appointed to the Board on 13 December 2021. On 2 April 2022 Trustees and staff met for a MTWAway Day at the Midlands Arts Centre, Edgbaston. Birmingham. Thi5 created an opportunity for all those involved with MTW to discuss how the charity operates, and what its priorities should be in the future. It was also the first time since the Covid pandemic that Trustees and therapists We￿ able to meet frd¢e-tO-fate. At Its meetlng on 6 June 2022 the Board agreed to the introduction of a ￿ciproCal mentor schème which pairs a Trustee with one or MO￿ music therapists. This has increased the mutual understsnding across MTW. FLbndraising concerts by the Printempo Orchestra from the Royal 8irniingham Conservatoire in April, and the Midlands Hospitals. Choir in July raised £307 and £570 respectively. In July MTW received an unsolicited 8rant of £4C(JO from the Rowan TrusL The Future The charlty has a robust and realistic 2022123 8usiness Plan in place. The Plan's tsrgets Include further developing staff and their health and wellbein& along with creatin8 more capacity to meet the continuln8 new demand fof our services; increasing diversity and the delivery of Services to underrepresented 8roup5' the maintenance of financial stabilty and sustainability,. diversifying service delivery beyond education, and continuing to consult with purchasers, service users, and stakeholders. The CEO will continue to participate in the online Provlder Forum meetings being run by the 8ritish Association of Music Therapists IBAMTI. This report has been prepared in accordance with the special pThisions for small companles under part 15 of the Companies Act 2CM)6. Signed on behalf of the Board John Clemson - Chair 27th February 2023 Music Therapy Works Annual Report and Financial Statements for the yw ended 31- August 2022 INDEPENDENY EXAMINEIYS REPORTTO THE TRusfEESOF MU%CTHERAPYWORKS I report to the trustees on my examination of the financial statements of M￿lC Therapy Works Ithe Charity) for the vear ended 31" August 2022. which are set out on page5 11 to 18. Responsibilities and bassof report As the Trustees of the Charity land also its directors for the purpose of company lawl you are responsible for the preparation of the financial statements in accordance with the requirements for the Companies Act 2006 (the 2006 Havin8 saii5fied myself that the finanaal statements of the (harity are not requlred to be audlted under Part 16 of the 2006 Act and are eligible for independent examination. I report in respeci of my examination of the Charitys financial statements carried out ￿nd￿r se¢tion 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examlnation, I have followed all applicable Directions given by the Charlty Commission under section 14SlSllbl of the 2011 Act. Independent examlnefs slat*ment Slnce the CharitWs gross income exceeded f 250.(W your examiner must be a mernber of a body1Ssted In sectlon 145 ol the 2011 Act. I confirrn that l am qtsalified to undertake the examination because l arn a member of the Instltute of Chartered Accountants In England and Wales. which is one of the liste