MUSC THERAPY WORKS MUSIC THERAPY WORKS COMPANY LIMtrED BY GUARANTEE NO. 6663759 RÉGISTER£D CHARITY NO. 1126584 ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR TO 31" AUGUST 2023 Music Therapy Works Annual Report and Financial Statsments for the year ended 31" August 2023 For the very young Ma Music Therapy WoA(s Annual Report and Financial Statements for the y&v ended 31" August 2023 And the very old MTW provides music therapy services that are accessible and uses music making to help people communicate and express themselves. Music Therapy Works Annual Report and Financial Statemerbts for the y&ir ende3 during theyear. Music Therapy Works Annual Report and Financial Statements for the year ended 31" August 2023 The balarte on the unrestrkied fund5 at 31" August 2023 was £172.26Q 12022: £168.2571. The balance on the restrirted funds was £23.70412022.' £11,3721. REsfRicfED FUNDS The restricted funds have been doftated to the Charityfor specific purrx)wand are l￿d ift note io to the accounts. RESERVES POUCY The Board hasagreed as poly that the free reser￿ of the organlsatlon, deffined as netcur￿rt assetsthat are nelther restricted nor designated for spectfic purpose5. should be sufficieTht to provlde a ￿asonable workin8 balance to ￿￿et commitments when they become due whiLst reco8nisin8 the possible delay5 in receipt of fee Income due. It Is consldered that. g(ven that 83% of annual ttsrnover ￿ used to fijnd Maff costs. the reser¥es tsoet 15 best expressed In ternis of payroll rnonths. The Board has assessed that. undercurrent arCumstsn￿5, the free reserves Sho￿1￿ be the eqU￿alent of 6 months. payroll costs. Using the avera8e payToII costs from the 202312024 budw. free reserves should b2 in the ￿8}0￿ 01 £167.318. As at 31 Augutt2023. non4eslgnated free reserves lexcludlnÉfvnctionaltan8lb￿fiXed assets) stood at£172.136. The stated strategy has therefore been achieved thls year. The Board's reserves pollcy also requires the Trustee5 to reassess any designated funds annually when wlewing Its reserves, so that no funds are needlessly desi8nated and excluded Irom the cakulation of free reserves. FINANCIAL RISK MANAGEMENT The Charity finances its operatlons throveh the tentratton of cash from operatlng attivitles and has no Interest rats exposu￿ on financlal liabl1￿￿e$. Liquldlty dsk is manayd throueh foretasilngthe futur* tash flow ￿Qu1￿Ments of the CharSty and malntalnlng sufficient Cash at bank. Music Therapy Works Annual Report and Financial Statements for the ended 31" August 2023 REPORT FROM THE CHAIR Our Achievements On behalf of the Trustees of MUSICThera￿ Works, tt gives me great pleasure to provide you wrth an update on the activities of I￿[w during 2022123. 1 am happy to report that MTW had a suttessful year delivering music therapy ses5iOTrS tothose wrth physi(al. psythalo8ical. behavfoural. or emotional difficultSes. Music Therapy Delivery In Number5 5599 Hours of Music Therapy Sessions Delivered to: l Hospital 3 Assisted Living Facilities 15 Individual Residente5 26 Educational Establishments 236 People of All Ages In Ilnè wlth our strate8i¢ objectives, MIW increased the numberof hours of musictherapy sessions delivered by 18% and, atthough our stronghold remains in the West Midlands, started to develop our presence in the East Midlands. Desplte the challen8lnB circumstan￿$ due to the cost-of-living crisls, our dellvery of muslc therapy sessions to both prlmary and secondary schoo15 remained strong. Posltive feedback from schools included: commurtlcat•ln a wty thalh• m4ynotb•able to othenvts•... •JnolknMI *￿MentalhgO1th needs lo txpross thrw the medlum ofmusk In a Ilgfv•s ourpuplls th• opiioiknrfytoexpkne Ind A longer-term strategic objective isthe dNersification of our delrvery seNl¢e to ensure MWS financial stability and sustainabilsty. During the year under review, MTW secured a contrart to deliver music therapy session5 at a children's hospital. This is just one of the first Steps on the road to diversification. As well as recruiting several music therapists this year, MTW also rècruited a new clinical lead officer in May 2023. who has been able to offer valuable. specialFSt dinical insight and support to the wider team of Music Therapy Works Annual Report and Financial Statemerts for the year ended 31" August 2023 therapists. The clinical lead offI￿r has been instrumental tn the delivery of staff training and staff training targets We￿ met during the year. ensuring that our clients are being supported by highly qualified and skilled music therapists. Duringthis year. MTW'S dedicated tsam of theraplsts has been able to do more of the work, which we are all so passionate about. Satlsfartion with I￿r Service In 2023. questionnaire5 were sentto the fami￿ members. cèrer5 and professionals who support our cllents. Thi5 is a summary of their responses: 80% were very happy with the service and 20% mostly happy. 90% would definitely recommend MTW. 90% felt the Servi￿ represented very good or reasonable value for money. Overall, responses indicated a high level of satlstsction with the Servi￿ provided. Consistency of service was identified as a key fartor. This is somethin8 that MTW wll continue to do our utrnost to malntain. Fundra15ing Further to the purchase of iPads and supportlng accessories. In the prewous ftnancial year, as a means to use tnnovation to enhance thè effertiveness of our music therapy delivèry, I report back on the overwhèlming success of this addition to the therapists tool ktf. Using the ipads in their daily work. the team have given the following feedback on the difference that has been made to both them and thelr cllents: UsingThumbJam Lwth th• s8nSoryswk8ra...d￿h￿Y was geltingso oxcltgd byth• multi-s•nsNyexpwknc• olths spe•kw thrw herm•lbYss . It*as so wond•rftslto ￿tch h•randlw lamlll•s' expresslonsl ￿est￿t•￿ to vwllsi andDads•ld¥h• w•s stiN aftwlts• $05SiOn. lum the 71KmbJ•JJ app•ndr¢cwtydtsovered thatitcan be ¥$￿1￿¢ by￿￿C￿ whkh myclients limlledn￿vtM0￿tin thwh•nds lov• lo use. Ih•ve usedthe groov¥padapp losupptmalnstr•am schoolclitnts and theylov•being able fo crnale50m•thfftg diflerent•vtrytune they tw IL Ih•w• alw us•d Garage8andftyeliwts toff•cordthelrty*n songs. lthlnkthe iPad Is fantsslkl ft*vs• lovety havesu¢h a snazzypioce of $￿ts. Thankyou io Music Therapy Works Annual Report and Finanaal Statements for the y&ar ended 31" August 2023 We are immensely grateful to the following funders whose generous donations allowed us to purchase the iPads, hardware accessories. and software: The Edward Gostling Foundation The Rowlands Trust The Roger & Douglas Turner Charitsble Trust Baron Davenporfs Charity MTW wa5 fortunate to be the thosen charFty for the collectlon at the Midlands H05Pital Cholr concerts and by GBP Partnerships Foundatlon for their community funding. We would Ilke to record our speclal thanks to them and to all our donors for theor generosity despite the challenging economic times. We are commltted to ensurin8 that our donated income is used responsibly, efficiently, and effectively. PLan8 for Future Perlods MTW is committed to growing our workforce and providin8 Opportunities for career progression within the or8anisation and creatin8 Sustainable roles for the future developrnent of the charity. The Trustees met for an Away Day in February 2023, which provided a valuable opportunity to discuss MTW5 priorities for the future. The mentorln8 scheme has continued to develop mutual understsndln8 and support between the Trustees and the MTW team. Our plans to increase business over the next few years will focus on diversifyin8 our Income and offer by: Increasing our delivery of onllne music therapy seNces to reach those we mi8ht not otherwlse be able to work with. Exploring the possibilty of supporting mental heakh with muslc therapy. Further expanding OUT services to those livln8 With dementia. A succe5sMI fundraising campaign tQ SUPPOrt dementia work will see two of our thèrapists begin to dellver sessions in four Extra Care Charitable Trust Villages in the West Midlands in September 2023. We are extremely grateful to the following organisations for their generous donations to facilitate this prolett.. The McLay Dementia Trust The D'oyiy Carte Charitable Trust George Fentham Birmingham Charity Baron Davenport's Charity The Eveson Trust On behalf of the Trustees. I would like to thank our music therapists and 5UPPOrt staff for their hard work and enthusiasm (luring the year which helped make 2022123 another suc￿Ssful and special year fi)r our cllents. I would also like to pay tribute to fom)er Chair. John aem50n. who rezired as a trustee and 11 Music Therapy Works Annual Report and Financial Statements for the year ended 31- August 2023 as Chair in Decembèr 2023 and to Allan Crai& who retired as a trustee in February 2023. both of whom gave many years of dedicated seTrice to MTW and helped to guide it forward. The Board of Trustees is also Br*eful to Simon Murphy. MTvfs former chiefexecuti¥e. for all the hard work and dedication, which he put in to stabilislng MTW during his tenure after the pandemlc. We as a Board have taken all steps to manage the interim period and the recruitment of a new CEO as smoothly as posslble. We are grateful to the other members of the senior leadership team and to the therapists for their support during this period and look forward to the fresh vision and focus whlch MTW'S new CEO will bring to the role. This report has been prepared in accordance with the special prov$ions for small compènles under part 15 of the Companies Act 2006. Signed on beha￿ of the Board Sandra Bristoll - Chalr 29th April 2024 12 MusFc Therapy Works Annual Report and Financial Statements for the year ended 31" Au st 2023 INDEPENDENT &￿MINERs RÉPORTTO THE TRiSSTEES OF MUSICTHERAPY WORKS I report to the trustees on my exarnination of the flnanclal staten*nts of Music Therapy Works (the Charftyl for the year ended 31# August 2023, which a￿ setout on pages 14 to 21. ReSpOn￿bIlItieS and bas15 of report As the Trustees of the Charity land also its directo￿ for the puryh)se of company lawl you a￿ ￿pOnSIble for the preparatlon of the financkil ststements In accordance with the requirements for the Companies Act 2tK)6 (the 2006 Havin8 satisfied myself that the ftnartlal statements of the tharity are not reqUI￿d to be audlted under Part 16 of the 2￿)6 Act and are eligtble for Independent examination. I report In ￿SpeCt of my examination of the Charitrfs financial staternents carrled out under section 14S of the Charlties Act 2011 (the 2011 Actl. In ¢arryin8 Out my examlnatlon, I have followed all applicable DirtttiOll5gNen bythe Chadty CommlssK)n under section 14515llbl of the 2011 Ac Independerrt examlnerfs 5taternent Sinee the Charl￿5 gross income exceeded £2SO.CW your examiner must be a member of a body listed in sectlon 145 of the 2011 A¢t. I conftrm that l am qualrfied to undertake the examlrtation because l am a member of thè Instltthe of Chartered Accountant5 in England and Wales, which is one of the Ilsted bodÈs. I have completed my examlnatlon. I conflrm that no mattets have come to my atteAtion In tonnectlon wlth the examlnatlon 8lvin8 me cause to belleve that in any material re5pert'. occountin8 records were not kept In respett of the Charlty as reouired by sectlon 386 of thè 2006 Att: or the financlal Statements do not accord with those records: or Ihe financlal 5tstements do not Comp￿ ￿th the accountin¢ requirernentsof section 396 of the 2006 Act other than any requirement that the accounts 8lve a true and falr view which Is not a matter considered a5 part of an Sndependent examlnatlon: or the financlal statements have not been P￿pare(l kn accordance w￿h the mèthods and pdnclples of thè Statemènt of Recommended Practlce for ￿￿￿tIng and repoftyng by eharitie5 appllcable to char￿leS p￿Paringthe1r3cC0Unts In aCco￿antew1th the Flnanclal Reportlngstanthrdapp1Kab￿ IntheUKand Republlc of Ireland IFRS 1021. I ha￿ no concems and have come across no mattets In connectlon wlth the examination to whlch attentlon should be drawn In thts report in order to enable a proper understsndlng of the financial statements to be reached. L E Parkes FCA Chartered Accountsmt Parke5 & Co 5 Crondal p￿Ce. Blrmlngham B15 2L8 Date.. 1/4 13 Music Therapy Works Annual Report and Financial Ststements for the year ended 31" August 2023 STATEMENT OF FINANOAL AcnvmES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ÉNDED 31" AUGIJST 2023 Notes Restrfct Funds 2023 Total Fun Funds Funds INCOME FROM". Donatlons 41 16.630 20,736 29,797 Charitable Activities )A73 I￿75 227.050 Investments 3.732 3.732 1,324 TOTAL 298.711 16,630 315341 258,171 EXPENDITURE ON: Charitsble Artfvlties 294,708 4.298 299,006 262,939 TOTAL 294.708 4.298 299.006 262,939 NET INCOME/{EXPENSE) 11332 16,335 14.7681 RECONCIUATION OF FUNDS Tot81 Funds Brou8ht Forward 168,257 11,372 179.629 184,397 TofAL FUNDS CARRIED FORWARD 172.260 Z3,704 19S, 179,629 The statement of financial actNitiès includes all gains and losse5 recognised in the year. All income and expenditu￿ derive from continuin8 artr¥itie The Statement of Financial Acttwties a150 complies with the requirements for an Income and Expenditure Account under the Companies Act 2(KJ6. 14 Music Therapy Works Annual Report arKI Financial Ststements for the year ended 31- August 2023 BALANCE SME AS AT 31 AUfjUST 2023 2023 Totsl 2022 Total Funds Notes FIXED ASSErs Tangible A55ets 124 124 524 524 Totsl Ftxed Assets CURRENT ASSErs Debtors Cash at bank and in hand Totsl Current Assets 21.954 179.600 201,554 11.685 172.793 184,478 CREDITORS Amounts falllng due withln one year 5.714 5.373 Net CurrentAssets 195WO 19S, 179,105 179,629 TOTAL NEf ASSErs THE FUNDS OFTHE CHARITY Unrestricted funds Restricted funds 172,260 23.704 195.964 168.257 11,372 179,629 Total Charlty Funds The Company is entitled to the exemption frNn the audit requlren*nt contained in sectlon 477 of the Companies Act 2(KJ6 for the yearended 31 Avgust 2023. The dlrectors acknowled8e their responslb1l￿IeS for complylng w￿h the requirements of the Companles Act 2006 wlth ￿SpeCt to accounting records and prtparat5on of flnanclal statements. The members have not required the company to obtain an avdlt of its flnanclal ststements forthe year In question Sn accordance with section 476 of the Companie5 Att 20￿. These financial statements hève been prepared rn accordante with the provlslons applicable to ¢ornpanles subjett to thÈ SMHII cornpanieg re8ime and in aCCOTdance with FRS102 SORP. The flnanclal statements were approved by theTrustees on 29April 2024 S. Sandra Bristoll- Tfustee Company Registration No. 6663759 Andrea H¢)wl- Trustee 15 Music Therapy Works Annual Report and Financial Statements for the erbded 31" August 2023 l. Accounting Policies Cha Informatlon Music Therapy Works is a prlvate company limited by guarantee incorporated In En8land and Wales. The registered office is S Dean5way. Worcester, WRI ZIG. Accountin Conventl The financial statements have been p￿pared in accord3nce with the Charity's accounting policies and comply with the Charl￿S Memorandum & Articles of Association. the Companies Act 2(NJ6 and the provlslorns of "Accounting and Reporting by Charities: Ststement of Recommended Prattice applicable to charfties preparing their accounts in accordance wrth the Finanoal Reporting Standard applicable in the UK and the Republic of Ireland IFRS 1021" leffectwe for accounting periods commencing l January 20191. The charity is a Public Benefit Entty as defined by FRS 102. The Charfty has taken advantsge of the provisions in the SORP forcharlties applyin8 FRS 102 Update Bulletln I not to prepare a Statement of Cash Flows. The financlal statements are p￿sented in Sterlir*. which b the fijnctional currency of the charlty. Monetary amounts in these financlal statements a￿ rounded to the nearest £. The finandal statements have been prepared under the historical cost corwentlon. The prfnclp31 accounting policies adoptÈd are set out below. Goln At the time of approving the financial statements, the Trustees have a ￿aSonable expectation that the charity has adequate resources to continue In operational existence for the foreseeable fiJtUTe. Thus, the Trustees continue to adopt the going concern ba515 in preparing the finantial statements. n¢omln Income is included in the Statement of Financial Activtties when the charitable company is legally entitled to the Income. when it is probable thatthe income will be recer¥ed and when the monetary value of the income can be measured with suffirierrt reliabiltty. Artivitles Income from therapy fees. teaching and workshops are Induded in incomin8 resoLFrce5 rn the period in whlch the relevant event takes place. Donutlons andGr¢urts Income from donations and 8rants is include(l in incoming resources when receivable, except as follows.. where donors speafythat donations and 8fdnts gNen to the charity must be used in future accounting periods, the income is defer￿d until those accounting perlods,. when donors impose ¢ondttions that have to be fulfilled beforethe charity becomes entitled to use such income. the income is defeired and not included in incoming resource5 until the pr￿ondItionS for use have been met, 16 Music Thernpy Works rt and Financial Statements for the year ended 31" August 2023 Annual Re when donors spectfythat donations and grants are for particular restritted purposes, which do not amourrt to prtrwrKlition5 regarding entrtlemeni this income is included in incorning resOUr￿S of restricted funds when recewable. Resources E nded Resources expended are included in the Statement of Financial Activities on an accrua15 basis, Inclusive of any Value Added Tax that cannot be recovered. Charitable activtties include expenditure associate(J with the proviS￿n of muslc therapy and both the dirett costs and support ¢OSts relating to these artivtties. Governance costs include those incurred In the go¥emance of the charity ar￿ its assets and are primarily associated with conStit￿lOnal and ststutory requirements. Tan ible Flxed Tanglble Fixed assets are initially measured at costand subsequentty measured at cost orvaluatlon, net of depreciation and any impairment losses. A￿ets wtth an indNidual value of E5(K) or more are capttallsed on the balance sheet. Depre¢latlon is provided at r*es calculated to wrfce off the cost less estlmated residual value of each asset over its expected useful life as follows: Musical Instrumerrts Offlce equipment 4 years 3 years Dèpreciation is not provlded on assets which have t)ot yet been brought into use. Penslon The charty operates a defined contribution pension scheme for employees. The assets of the scheme a￿ held separatelyfrom those of the charity. The annual Contributions payable are charged to the statemerrt of financial activities in the period to which they relate. Fund Accounti Funds held by the charity are either: unrestricted general fvnds - these are funds which can be used In accortlante wtth the charitable objerts at the discretion of the trustees.. designatedfvnds-these are unrestricted fvnds designated by the trustees for a partlcular purpose,. restrirtedfvnd5- these are funds that can only be used for particular restrirted purposes within the objects of the tharity. Re5trirtions arise when specified by the donor or when fLTrnds a￿ raised for particular restrirted purposes. 17 Music Therapy Works Annual Report arKI Financial Ststements for the y&v ended 31- August 2023 Finanaal Instruments The charity has electedto applythe provisions of Section Il'Basi¢ Financial Instruments. and Section 12 '0ther Financial Instruments Issues. of FRS 102 to all of its financial instruments. Financlal inStruMer￿ are recognised in the Charl￿S balance sheetwhen the charity becomes party to the contrartual provisions of the Instrument. Flnanclal assets and liabilit￿ are offset. wf(h the netamounts p￿Sented inthefinancial statements, when there is a legally enforceable right to Sèt off the reco8nised amounts and there is an intentlon to settle on a net basi5 or to realise the asset and settle the liability simultaneously. 8oskfinonciol 055ets Bas1¢ Flnanclal assets, which include debtors and cash and bank balance5, are initially measured at transaction price including transaction costs and are subsequently carried at amortlsed cost using the effective interest method. Financial assets classified as receivable within one year are not amortlsed. BoskAlnonclclllobllltles Basic financial liabilities. Including creditors. a￿ initially recogni5ed at transartion prlce. Flnancial Ilabllltles classified is payable wf(hin one year are not amortised. Trade creditors are obllgations to pay for goods or services that have been acquired In the ordinary course of operatlons from suppliers. Amounts payable are classrfied as current liabilities if payment is due within one year or less. IF not. they are presented as non-current liabilitles. Trade creditors are recognised initially at transaciion price and subsequently measured at amortised cost using the effectfve Interest method. Derecognltlon oljlftondol Ilobllltles Financial liabilities are de￿¢08ft1$ed when the thariws contrartual obligations explre of a discharged or cancelled. ifi¢ant Jud The preparation of the financial ststements requires management to make judgements, estlmates and assumptions thataffect the amounts reported. Thèse estimates and judgemènts are continually reviewed and are basèd on experience and other fattors. including expertations of future evènts that are believed to be reasonable underthe orcumstances. 18 Music Therapy Works Annual Report and Financial Statements for the year ended 31- August 2023 IFU ds Total FL¢nd$ 2022 Funds Funds 2. Income from Charitsble Pthtties mU￿C Therapy Fees 29)373 227￿ 3. InTnStrnent Income Dew5it kcount irtere5t 3.732 3,732 1.324 4. Charftsble Acihrytles Costs The mln Totsl 2022 sala￿es & NI (Note 51 Ixhprstaff Eq￿prnent Cosrs Adminlstrallon Costs 218.717 8.275 44517 263.294 8275 27.437 299L4)6 227.278 9,C65 26,596 262,939 27A37 71.954 227M52 The Independent Examiner recelved £550 lindudirvd VAT) In respect of examination fees12022: £5501. 5. stsff Costs 2023 2022 Wages & Salaries Social Security Costs Pension Costs 244,869 13,968 4,457 263294 215,424 8,031 3￿3 227.278 Total remuneration paid to key management personnel durir* the year was £22,44712022: £23,150). During the year, the Charity employed 7 fv11 time equivalerrt stsff12022: 61 of which there was I12022= 11 administratNe staff and 612022.. 51 therapy staff. None of the director5 receNed any emolumerrt or reimbursement of expenses in respect of their services s Trustees of the charity. No individual receNÈd Èmoluments equal to. or in excess of, £60,(￿￿. 19 Music Therapy Worfcs Annual Report and Financial Ststements for the year ended 31- Augiist 2023 6. Fixed Assets Muskal uters & Instruments Totsl Cost at I September 2022 Additions Cost at 31 August 2023 3,563 4.972 3563 4,972 Depreciation at I September 2022 Charge for the Year Depreciation at 31 Au&L￿t 2023 3.039 400 3A39 Net Book Value al 31 August 2023 124 124 Net Book Value at 31 Au8U5t 2022 524 524 7. Debtors: amounts falling due wlthln one ￿ar Debtors forTherapy Fees kcrued Income 19,033 2,921 21,9S4 10.726 959 11,685 8. Credttors: amount falling due wtthln one year Taxation and Social Security Other Creditors Accruals Deferred Sales Income 4.379 51 1284 3.803 Iso 1.296 124 5373 5.714 Music Therapy Works Annual Report and Financial Statements for the year ended 31" August 2023 9. Llnresirl¢twlFwx15 fjewal F￿d 172.260 168.2S? 10. Re#rf¢tedfwK Titsb 2022 Intomin8 Reswrce5 RÈswrces Exr*nded Net Infiow/lfyJtflowlof F￿d5 Funds at I September 2022 Funds Jt 31 Au8ust 2023 13.0701 1.253 14,3231 197 16.630 4,298 12,332 Ll.372 I97(￿ 23,704 19,881 14,136 5,745 5,627 11,372 12.6aOI 14051 197 FurM15 Furn 2022 Fund Balances at*Miust31. 2023artrewwt•d ty. TangSbleA55et5 CurrentAs5et5 124 172,136 17Z.160 124 23.704 195.840 23.704 195 964 524 179,105 179,629 13. Related Party Transactlons There were no dlsclosable related party tran5artions durln8 the year12022- None). 14. Capltal Commltments Amounts contracted for not provided in the finanoal ststements anounted to £012022.. £01. 15. Taxation Muslc Therapy Works is a registered charity and. the￿fore. Is not liable to income tax or corporation tax on income and gains derNed frw) its charitable activ￿e5. as thèy fall within the various exemption5 available to re8lStered charities. 21