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2022-06-30-accounts

DocuSign Envelope ID: 8C0B3294-F601-484A-AF8C-0EA2D3899DFC

MAINLY MUSIC UK

(Registered charity numbers 1167021 & SC048913)

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

HPH Chartered Accountants 54 Bootham York YO30 7XZ

DocuSign Envelope ID: 8C0B3294-F601-484A-AF8C-0EA2D3899DFC

MAINLY MUSIC UK

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

CONTENTS page
Trustees' Annual Report 1 - 6
Independent Examiner’s Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Accounts 10 - 18
The following pages do not form part of the statutory financial statements
Detailed Income and Expenditure Account 19 - 21

DocuSign Envelope ID: 8C0B3294-F601-484A-AF8C-0EA2D3899DFC

MAINLY MUSIC UK

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022

The Trustees have pleasure in presenting their Annual Report and the Financial Statements for the year ended 30 June 2022.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the charity’s constitution, the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), and the relevant version of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the relevant version of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Objectives and activities

Objectives

The objects of Mainly Music UK (mainly music UK) are: -

To advance the Christian religion, for the public benefit, in the UK, by supporting churches in the UK to provide education-based outreach ministry models, including educational and play support groups for children and young families, in particular but not exclusively by:

  1. establishing attractive and relevant activities, based around music and play, for use by Christian churches and of interest to families with young children;

  2. providing instruction and ongoing resource for churches to establish these activities for families;

  3. ensuring the activities have educational outcomes for children and for the parent or care giver, encourage and enable them in their role;

  4. in all these activities, provide resources and training to help families from the community explore the Christian faith at their pace.

Activities

This past financial year has been one of celebration at every corner. After the difficult experiences in the financial year of 2020/21, we have been delighted to see growth occur.

  1. Group numbers and membership Growth has occurred with not only churches re-opening their mainly music groups, but also new applications and resulting sign-offs have been achieved. mainly music groups have increased and mainly play groups have been established.

This has resulted in higher than budgeted membership.

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MAINLY MUSIC UK TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 CONTINUED

  1. Volunteers

The pandemic created a lot of stress and anxiety, which has resulted in (a) volunteers stepping down from their roles, concerned for their own health and the health of families; and (b) people reassessing their calendars and deciding where to put their volunteer efforts. For some, that has meant going to almost-no volunteer involvement. These have impacted the number of teams or the size of teams. In response, we have encouraged teams to form with a minimum of four (rather than six), and managing a roll of 15 families. This is doable. Interestingly, Team Leaders are reporting a deeper level of connection with and between the families.

  1. Product sales Sales were less than budgeted. However, we know that groups used stock purchased in early 2020 for birthday and Easter celebrations that were held over and used in this financial year. Overall, we celebrated the final result.

  2. Operating expenses

A tight control was placed on operating expenses, which has contributed to the overall result.

  1. Successful grant The organisation was successful in obtaining a grant to increase group numbers in Scotland. This provided one of our staff additional hours to focus on this growth.

  2. Forgiveness of debt One of the difficulties for mainly music UK was the start up seed funding having been provided as a loan to mainly music International and mainly music Australia. At the end of 2020/21, we celebrated the generosity of these organisations forgiving this debt in acknowledgement of the way in which we came out of the pandemic and that the debt was equivalent to start up seed money. This provided a way forward for us to apply for grants and make decisions for the future.

Stories abound again from during the financial year:

On behalf of our family, I want to say a H-U-G-E thank you for the kindness me and my family have received from all at mainly music following my husband's accident. I felt really grateful to be part of such a thoughtful and supportive group.

I wish my daughter and I could come back again, but she is now at nursery every morning. I want to say a big thank you. We were only able to join for a short time after our move and before the pandemic but we really, really appreciated the warm welcome, friendly atmosphere and well run mainly music sessions. It was quite an emotional time of transition and your group was one that we always looked forward to as a point in our week while we created our new rhythm of life here.

The team and I had a wonderful first session of mainly music this morning (despite dismal weather!). It was so encouraging – you were right, this is definitely is a popular idea. We had a hall full of kiddies and grownups, all having a great time together! It's lovely to see all these lockdown babies playing in exactly the same way as pre-pandemic days! It was also lovely to see how the music actions will work. I couldn't understand how you would organise young ones to wear masks for the Splish Splash song but so many of them were dying to come and be at the front with me.

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MAINLY MUSIC UK TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 CONTINUED

Structure, governance and management

Governing document

mainly music UK is a Charitable Incorporated Organisation (Association model) whose only voting members are its charity Trustees. The Charity is governed by its constitution, which was adopted on 27 April 2016, and was formerly registered with the Charity Commission for England and Wales on 10 May 2016, and with the Office of the Scottish Charity Regulator (OSCR) on 17 December 2018.

The Board of trustees

The governance board consists of the trustees listed in the Administrative details section of this report.

Recruitment, appointment and training of new trustees

Apart from the first charity trustees, every trustee must be appointed for a term of three (3) years by a resolution passed at a properly convened meeting of the charity trustees. In selecting individuals for appointment as charity trustees, the charity trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO.

The charity trustees will make available to each new charity trustee, on or before his or her first appointment:

Related parties

mainly music UK works closely with mainly music International Trust, which provides resources and materials and mainly music (Australia) Limited, which provides administration and accounting services.

Financial review

Total income for the operational year ended 30 June 2022 amounted to £37,173 (2021: £98,706), with total expenditure amounting to £35,795 (2021: £37,267) giving rise to a surplus of £1,378 (2021: £61,439). The principal source of income derives from membership which increased in the year to £20,849 (2021: £17,941). Sales of merchandise rose to £8,730 (2021: £2,844). Cost of sales and direct expenditure increased to £8,978 (2021: £2,112) and salary and staff costs increased to £17,083 (2021: £13,513); membership support costs reduced to £982 (2021: £11,323) and administration costs reduced to £7,011 (2021: £8,699).

Going Concern

The Charity depends on mainly music International Trust and mainly music (Australia) Limited to meet its day to day working capital requirements. Current forecasts indicate that the Charity expects to be able to generate positive cash flows within its own account within the foreseeable future. The mainly music International Trust Board and mainly music (Australia) Limited Board are also both well aware of this situation and acknowledge that their support, both financially and strategically is of vital importance for mainly music UK to operate positively. The Trustees are not aware, however, of any circumstances that may adversely affect the renewal of these facilities. Accordingly, the Trustees believe it is appropriate to prepare the financial statements on the going concern basis.

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MAINLY MUSIC UK TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 CONTINUED

Reserves

At 30 June 2022 the Charity had total funds of £9,532, of which £6,767 are unrestricted and £2,765 restricted. The Charity plans to increase its reserves over the next 2 to 5 years. The Trustees have reviewed the reserves policy in year, examining the reliability of future income streams, the commitment to future expenditure and risks faced by the Charity and have determined that they need funds that equate to 3 months running costs to provide the ability to:

Reserves are maintained through the generation of surpluses from delivery of activities, fundraising appeals and events, and shall be defined as unrestricted current assets less liabilities. The current unrestricted undesignated reserves figure on 30 June 2022 amounted to £6,767, approximately 2 months core expenditure.

This is an improvement on the prior year and the Charity has a stated aim to increase its level of free reserves over the next 2 to 5 years.

Plans for future periods

Our focus for the 2022/23 year is three-fold:

  1. We are focused on continued growth, which will enable the organisation to have a solid foundation. Already, just 3 months into this new financial year, we have had growth beyond expectation.

  2. We are focused on an increase in mainly babies’ sessions (the newest offering to families as they enter parenthood) and product sales. This will provide cash flow and the ability to consider a Reserve Fund.

  3. We are focused on increasing the number of grant applications that will provide opportunities to establish groups in areas of multiple deprivation.

Public benefit disclosures

The trustees believe they have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to guidance published by the Charity Commission in respect of public benefit.

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MAINLY MUSIC UK TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 CONTINUED

Administrative details

Registered name of the charity: Mainly Music UK Working name: mainly music UK Registered Charity Numbers: 1167021 / SC048913 Principal Office Address: Astwood Law 39, Prospect Hill Redditch Worcestershire B97 4BS Operations Address: 24 Manor Lane PO Box 7246 Stourbridge West Midlands DY8 9GE Scottish Office Address: 101 Rose Street South Lane Edinburgh EH2 3JG Website: mainlymusic.org.uk Email: uksupportcentre@mainlymusic.org Telephone: 0800 112 0382 Trustees: Mrs Victoria Duce Mrs Josephine Mary Hood Ms Pamela Maclure Mr David MacLennan Mr John Martin – Chair Mr David Morris (Resigned 31 December 2021) Mrs Kate Robbins (Resigned 2 June 2022) Bankers : Lloyds Bank plc 2 Pavement York YO1 9UP Independent Examiner: Sarah Wearing, FCA, DChA HPH, Chartered Accountants 54 Bootham York YO30 7XZ

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MAINLY MUSIC UK TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 CONTINUED

Trustees’ responsibilities in relation to the financial statements

The purpose of this statement is to distinguish the charity trustees’ responsibilities for the financial statements from those of the independent examiner as stated in his report.

The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales and Scotland requires the charity trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing the financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, the Charity Accounts (Scotland) Regulations 2006 (as amended), and the provision of the constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Declaration

Approved by the trustees on 31 October 2022 and signed on their behalf by:

……………………………………………….. John Martin - Trustee

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INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF MAINLY MUSIC UK

I report to the charity trustees on my examination of the financial statements of Mainly Music UK (“the Charity”) for the year ended 30 June 2022.

This report is made solely to the Charity’s Trustees, as a body, in accordance with section 154 of the Charities Act 2011. My independent examiner’s work has been undertaken so that I might state to charity’s trustees those matters that I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity, the Charity’s Members as a body and the Charity’s Trustees as a body for my independent examiner’s work, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the trustees of the Charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 (the ‘2005 Act’), the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011 (‘the 2011 Act’). You are satisfied that your charity is not required by charity law to be audited and have chosen instead to have an independent examination.

I report in respect of my examination of the Charity’s financial statements as carried out under section 44 (1) (c) of the 2005 Act and section 145 of the 2011 Act. In carrying out my examination I have followed the requirements of Regulation 11 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Your attention is drawn to the fact that the charity has prepared the financial statements in accordance with the relevant version of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

I understand that this has been done in order for the financial statements to provide a true and fair view in accordance with UK Generally Accepted Accounting Practice.

Independent examiner’s statement

Since the Charity has prepared its financial statements on an accruals basis and is also registered in Scotland your examiner must be a member of a body listed in Regulation 11(2) of the Charities Accounts (Scotland) Regulations 2006 (as amended). I can confirm that I am qualified to undertake the examination because I am a registered member of the Institute of Chartered Accountants in England and Wales which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Charity as required by section 44 (1) (a) of the 2005 Act and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and section 130 of the 2011 Act; or

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

  3. the financial statements do not comply with the accounting requirements Regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and do not comply with the applicable requirements concerning the form and content of financial statements set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the financial statements give a ‘true and fair’ view which is not a matter considered as part of an independent examination.

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 financial statements to be reached.

Sarah Wearing, FCA, DChA Institute of Chartered Accountants in England and Wales 31 October 2022

HPH, Chartered Accountants 54, Bootham, York, YO30 7XZ

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DocuSign Envelope ID: 8C0B3294-F601-484A-AF8C-0EA2D3899DFC

MAINLY MUSIC UK STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2022

Notes
Income and endowments from:
Donations
2
Income from charitable activities
3
Income from trading activities
4
Total income
Expenditure on:
Trading activities
6
Charitable activities
6
Total expenditure
Reconciliation of funds:
Total funds brought forward at 1 July
Total funds carried forward at 30 June
Net income for the year and net
movement in funds		 Unrestricted
Funds
£
868
21,575
8,730		 Restricted
Funds
£
6,000
-
-		 Total
2022
£
6,868
21,575
8,730		 Total
2021
£
5,346
90,516
2,844
31,173 6,000 37,173 98,706
8,978
21,392		 -
5,425		 8,978
26,817		 2,112
35,155
30,370 5,425 35,795 37,267
803
5,964		 575
2,190		 1,378
8,154		 61,439
(53,285)
£ 6,767 £ 2,765 £ 9,532 £ 8,154

The statement of financial activities includes all gains and losses recognised in the period. All income and expenditure derive from continuing activities.

The notes on pages 10 to 18 form part of these financial statements.

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MAINLY MUSIC UK BALANCE SHEET AT 30 JUNE 2022

(Registered charity numbers 1167021 & SC048913)

Notes
Current assets:
Stock
Debtors
8
Cash at bank and in hand
Total current assets
Liabilities:
9
Net current assets
Total assets less current liabilities
Total net assets
The funds of the charity:
Unrestricted funds
10
Restricted funds
10
Total charity funds
Creditors: amounts falling due
within one year		 Unrestricted
Funds
£
7,004
1,996
2,953		 Restricted
Funds
£
-
-
2,765		 Total
2022
£
7,004
1,996
5,718		 Total
2021
£
8,503
505
3,911
11,953 2,765 14,718 12,919
5,186 - 5,186 4,765
6,767 2,765 9,532 8,154
6,767 2,765 9,532 8,154
£ 6,767 £ 2,765 £ 9,532 £ 8,154
6,767
-		 -
2,765		 6,767
2,765		 8,154
-
£ 6,767 £ 2,765 £ 9,532 £ 8,154

The notes on pages 10 to 18 form part of these financial statements.

Approved by the Trustees on 31 October 2022 and signed on their behalf by:

…………………………………………….

John Martin - Trustee

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MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of Preparation and assessment of going concern

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to the financial statements. The financial statements have been prepared in accordance with the relevant version of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and UK Generally Accepted Accounting Practice.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the relevant version of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Mainly Music UK meets the definition of a public benefit entity under FRS 102.

The charity depends on financial and strategic support from mainly music International Trust and mainly music (Australia) Limited to meet its operational working capital requirements. Current forecasts indicate that the charity expects to be able to operate within these arrangements and facilities for the foreseeable future. These arrangements and facilities are renewed annually and are not guaranteed for the period covered by the going concern review. The charity has a reasonable expectation that it has adequate resources to continue in operational existence for the foreseeable future. They believe the going concern basis of accounting is appropriate in preparing the financial statements.

Mainly Music UK is registered in England as a Charitable Incorporated Organisation under the Charities Act 2011. The UK registered address is 39, Prospect Hill, Redditch, Worcestershire B97 4BS.

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MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 JUNE 2022

1. ACCOUNTING POLICIES (continued)

b) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Grant income from government and public bodies, whether ‘capital’ grants or ‘revenue’ grants, and matched funding, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Other income arising from other activities such as training and conferences is recognised in the period which the event took place.

c) Fund Accounting

Unrestricted funds are funds which can be used in accordance with the charitable objects at the discretion of the Trustees.

Restricted funds are funds which are subject to specific trusts, either declared by the donor when making the donation or grant conditions, or accepted by the donor in responding to a specific appeal.

d) Expenditure and Irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Expenditure on charitable activities relates to activities undertaken to further the purposes of the charity and includes their associated support costs.

Support costs include central functions and governance costs, and have been allocated to activities on a basis consistent with the use of those resources, e.g. allocation of staff costs by time spent and other costs by their usage.

Governance costs include those incurred in the governance of the charity and its assets and primarily associated with constitutional and statutory requirement.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

e) Tangible fixed assets and depreciation

Tangible fixed assets are included in the financial statements at their historical cost (in the case of donated assets, at their fair value at the date of acquisition).

Depreciation of tangible fixed assets is provided at the following annual rates in order to write off each asset over its estimated useful life:

Computer equipment over 3 or 4 years, reducing

f) Stock

Stock of materials and resources are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 JUNE 2022

1. ACCOUNTING POLICIES (continued)

g) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

h) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

i) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

j) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

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MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 JUNE 2022

2. GRANTS AND DONATIONS

Donations
Grants		 Unrestricted
Restricted
£
£
868
-
-
6,000
£ 868
£ 6,000		 Total
2022
£
868
6,000
£ 6,868		 Total
2021
£
5,346
-
£ 5,346

Restricted income in the prior year was £3,150 in donations

The Charity also benefits from the involvement and enthusiastic support of its many volunteers. In accordance with Charities SORP, the economic contribution of general volunteers is not recognised in the accounts.

3. INCOME FROM CHARITABLE ACTIVITIES

Membership
Other income
4.
INCOME FROM TRADING ACTIVITIES
Sales of merchandise
5.
NET EXPENDITURE FOR THE YEAR
after charging:
Depreciation
Independent examiner's fee
Accountants' remuneration - statutory accounts production
Net expenditure for the year is stated		 Total
Total
2022
2021
£
£
20,849
17,941
726
72,575
£ 21,575
£ 90,516
Total
Total
2022
2021
£
£
£ 8,730
£ 2,844
2022
2021
£
£
-
23
871
780
870
840
Unrestricted Funds
Unrestricted Funds		 Total
Total
2022
2021
£
£
20,849
17,941
726
72,575
£ 21,575
£ 90,516
Total
Total
2022
2021
£
£
£ 8,730
£ 2,844
2022
2021
£
£
-
23
871
780
870
840
Unrestricted Funds
Unrestricted Funds
2021
£
23
780
840

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MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 JUNE 2022

6. TOTAL EXPENDITURE

Cost of goods sold and
direct expenses
Charitable expenditure
Governance costs
Total expenditure		 Trading
cost of
sales
£
8,978
-
-		 Staff
costs
£
-
17,083
-		 Support
costs
£
-
7,993
1,741		 Total
2022
£
8,978
25,076
1,741		 Total
2021
£
2,112
33,535
1,620
£ 8,978 £ 17,083 £ 9,734 £ 35,795 £ 37,267

£2,398 of Costs of goods sold and direct expenses was restricted (2021 - £960) and £3,027 of staff costs (2021 - £nil.)

Analysis of support costs:
Membership costs and service charges
Office and administration costs
Governance costs
EMPLOYEE COSTS AND TRUSTEES' REMUNERATION
Wages and salaries
The average monthly number of employees for the year was as follows:
Administration		 Total
Total
2022
2021
£
£
982
11,323
7,011
8,699
1,741
1,620
£ 9,734
£ 21,642
Total
Total
2022
2021
£
£
16,698
13,511
£ 16,698
£ 13,511
2022
2021
3
3
Unrestricted Funds		 Total
Total
2022
2021
£
£
982
11,323
7,011
8,699
1,741
1,620
£ 9,734
£ 21,642
Total
Total
2022
2021
£
£
16,698
13,511
£ 16,698
£ 13,511
2022
2021
3
3
Unrestricted Funds
£ 9,734 £ 21,642
Total
2022
£
16,698		 Total
2021
£
13,511
£ 16,698 £ 13,511
2022
3		 2021
3

7. EMPLOYEE COSTS AND TRUSTEES' REMUNERATION

During the year no employees were paid emoluments amounting to £60,000 or more.

None of the trustees have been paid any remuneration in connection with their services as a trustee.

No trustees (2021 - none) were reimbursed expenses (2021 - £Nil) during the year, relating to expenditure incurred on behalf of the charity.

The key management personnel of the charity comprise solely the Trustees who received no remuneration during the year. The total employee benefits of the key management personnel was £Nil (2021 - £Nil).

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MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 JUNE 2022

8. DEBTORS

Trade debtors
Other debtors
Prepayments
CREDITORS: amounts falling
Trade creditors
Taxation and social security
Accruals and deferred income
Deferred income
Balance brought forward
Amount released in the year
Amount deferred in the year
Balance carried forward		 Unrestricted
Funds
£
1,725
11
260
£ 1,996
due within one		 Restricted
Funds
£
-
-
-
£ -
year		 Total
Total
2022
2021
£
£
1,725
185
11
40
260
280
£ 1,996
£ 505
Total
Total
2022
2021
£
£
3,214
3,029
28
-
1,944
1,736
£ 5,186
£ 4,765
105
3,150
(105)
(3,150)
-
105
£ -
£ 105
Unrestricted Funds
Unrestricted Funds		 Total
Total
2022
2021
£
£
1,725
185
11
40
260
280
£ 1,996
£ 505
Total
Total
2022
2021
£
£
3,214
3,029
28
-
1,944
1,736
£ 5,186
£ 4,765
105
3,150
(105)
(3,150)
-
105
£ -
£ 105
Unrestricted Funds
Unrestricted Funds
£ 4,765
3,150
(3,150)
105
£ 105

9. CREDITORS: amounts falling due within one year

At the balance sheet date the Charity had fully released all income received in advance.

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MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 JUNE 2022

10. FUNDS

Current year
Unrestricted funds
Restricted funds
New Groups
Groups in Scotland
Comparative year
Unrestricted funds
Restricted funds		 Balance at
1 July
5,964
-
2,190
-		 Income
31,173
-
6,000		 Expenditure
(30,370)
(1,930)
(3,495)		 Transfers
-
-
-
-		 Balance at
30 June
6,767
-
260
2,505
2,190 6,000 (5,425) - 2,765
£ 8,154 £ 37,173 £ (35,795) £ - £ 9,532
Balance at
1 July
(53,285)
-		 Income
95,556
3,150		 Expenditure
(36,307)
(960)		 Transfers
-
-		 Balance at
30 June
5,964
2,190
£ (53,285) £ 98,706 £ (37,267) £ - £ 8,154

New groups - This restricted fund is for monies received from the All Churches Trust to fund setup costs for new groups.

Groups in Scotland - This money was received from The Society in Scotland for Propagating Christian Knowledge for the purpose of increase groups in Scotland over in 3 years.

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Current year
Unrestricted funds
Restricted funds
Comparative year
Unrestricted funds
Restricted funds		 Fixed
assets
£
-
-		 Current
assets
£
11,953
2,765		 Current
liabilities
£
(5,186)
-		 Total
2022
£
6,767
2,765
- £14,718 £ ( 5,186) £9,532
Fixed
assets
£
-
-		 Current
assets
£
10,729
2,190		 Current
liabilities
£
(4,765)
-		 Total
2021
£
5,964
2,190
- £12,919 £ ( 4,765) £8,154

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MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 JUNE 2022

12. RELATED PARTIES

mainly music (Australia) Limited

Income amounting to £nil (2021 - £147) was received in the year in respect of sales of materials and resources to mainly music (Australia) Limited. Expenditure amounting to £1,791 (2021 - £5,248) was incurred during the year in respect of materials, resources and service charges from mainly music (Australia) Limited. In 2021 mainly music (Australia) Limited cancelled 2020 outstanding debts due from the charity amounting to £48,279. At 30 June 2022 £nil (2021 - £nil) was owed by mainly music (Australia) Limited, and £3,020 (2021 - £3,029) was owed to mainly music (Australia) Limited. Jo Hood (Trustee) is a trustee of mainly music (Australia) Limited.

mainly music International Trust

Income amounting to £335 (2021 - £272) was received in the year in respect of sales of materials and resources to mainly music International Trust. Expenditure amounting to £46 (2021 - £6,768) was incurred during the period in respect of materials and resources from mainly music International Trust. In 2021 mainly music International Trust cancelled all outstanding debts due from the charity in respect of the 2021 financial year amounting to £15,693. At 30 June 2022 £nil (2021 - £Nil) was owed by mainly music International Trust, and £nil (2021 - £nil) was owed to mainly music International Trust. Jo Hood (Trustee) is a trustee of mainly music International Trust.

mainly music New Zealand Trust

Income amounting to £36 (2021 - £nil) was received in the year in respect of sales of materials and resources to mainly music (New Zealand) Limited. Expenditure amounting to £98 (2021 - £nil) was incurred during the year in respect of materials, resources and service charges from mainly music (New Zealand) Limited. At 30 June 2022 £nil (2021 - £nil) was owed by mainly music (New Zealand) Limited, and £62 (2021 - £nil) was owed to mainly music (New Zealand) Limited. Jo Hood (Trustee) is a trustee of mainly music (Australia) Limited.

There were no other related party transactions.

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MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 JUNE 2022

13. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

Income and endowments from:
Grants and Donations
Income from charitable activities
Income from trading activities
Total income
Expenditure on:
Trading activities
Charitable activities
Total expenditure
Reconciliation of funds:
Total funds brought forward at 1 July
Total funds carried forward at 30 June
Net expenditure for the year and net
movement in funds		 Total
Total
Year ended
Year ended
30 June 2021
30 June 2020
£
£
5,346
5,855
90,516
43,003
2,844
7,801
98,706
56,659
2,112
5,391
35,155
44,128
37,267
49,519
61,439
7,140
(53,285)
(60,425)
£ 8,154
£ ( 53,285)
Unrestricted Funds		 Total
Total
Year ended
Year ended
30 June 2021
30 June 2020
£
£
5,346
5,855
90,516
43,003
2,844
7,801
98,706
56,659
2,112
5,391
35,155
44,128
37,267
49,519
61,439
7,140
(53,285)
(60,425)
£ 8,154
£ ( 53,285)
Unrestricted Funds
56,659
5,391
44,128
49,519
7,140
(60,425)
£ ( 53,285)

18

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The following page does not form part of the statutory financial statements

DocuSign Envelope ID: 8C0B3294-F601-484A-AF8C-0EA2D3899DFC

MAINLY MUSIC UK DETAILED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 JUNE 2022

INCOME
Grants and donations
Donations
Grants
Total grants and donations
Membership
Membership - group subscriptions
Membership - mainly play
Total membership income
Sales of merchandise
Sales - general
Sales - Christmas
Sales - Easter
Sales - father's day
Sales - mb Sessions
Sales - mp Set Up Pack
Sales - mother's day
Sales - Online Sessions
Sales - set up pack
Total sale of merchandise
Other income
Postage and handling collected
Other income and fundraising
mainly music International - debt forgiveness
Total other income
Total income - carried forward		 Unrestricted
£
868
-
868
20,340
509
20,849
3,471
857
672
44
160
180
106
-
3,240
8,730
726
-
726
31,173		 Restricted
£
-
6,000
6,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,000		 2022
Total
£
868
6,000
6,868
20,340
509
20,849
3,471
857
672
44
160
180
106
-
3,240
8,730
726
-
-
726
37,173		 2021
Total
£
5,346
-
5,346
17,941
-
17,941
1,106
426
43
62
775
230
11
121
70
2,844
228
8,375
63,972
72,575
98,706

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DocuSign Envelope ID: 8C0B3294-F601-484A-AF8C-0EA2D3899DFC

MAINLY MUSIC UK DETAILED INCOME AND EXPENDITURE ACCOUNT CONTINUED FOR THE YEAR ENDED 30 JUNE 2022

EXPENDITURE
Cost of sales
Cost of goods sold
Cost of goods sold - Christmas
Cost of goods sold - Easter
Cost of goods sold - father's day
Cost of goods sold - mb session pack
Cost of goods sold - mother's day
Cost of goods sold - new product design
Cost of goods sold - set up packs
Discount vouchers issued - set up
Direct expenses
Freight paid - domestic
Fundraising expense
Inventory adjustment
Royalties - artists
Royalties - international trust
Total cost of sales
Staff costs
Staff salaries
Salary support office
Staff expenses
Staff training
Total staff costs
Support Costs
Membership costs and service charges
Membership - licence fees
Membership expenses
World Service Centre charges
Total membership and service charges
Expenditure - carried forward		 Unrestricted
£
1,750
559
347
31
136
62
-
1,812
-
-
991
-
794
62
36
6,580
9,987
3,684
73
312
14,056
-
982
-
982
21,618		 Restricted
£
-
-
-
-
-
-
-
-
2,085
313
-
-
-
-
-
2,398
3,027
-
-
-
3,027
-
-
-
-
5,425		 2022
Total
£
1,750
559
347
31
136
62
-
1,812
2,085
313
991
-
794
62
36
8,978
13,014
3,684
73
312
17,083
-
982
-
982
27,043		 2021
Total
£
398
96
24
41
291
10
240
421
-
144
415
14
(39)
39
18
2,112
9,964
3,547
2
-
13,513
6,698
513
4,112
11,323
26,948

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DocuSign Envelope ID: 8C0B3294-F601-484A-AF8C-0EA2D3899DFC

MAINLY MUSIC UK DETAILED INCOME AND EXPENDITURE ACCOUNT CONTINUED FOR THE YEAR ENDED 30 JUNE 2022

Expenditure brought forward
Office and administration costs
Advertising and marketing
Bank fees
Foreign exchange variances
Contractors
Depreciation expense
Development recharges
General expenses
Insurance
IT software and consumables
Rent
Loss on disposal of Fixed Assets
Office equipment (non FA)
Repairs and maintenance
Postage, freight and courier
Printing and stationery
Subscriptions
Telephone and internet
Total office and administration costs
Governance costs
Accountancy fees
Total governance costs
Total support costs
Total operating expenses
Total income - brought forward
NET (DEFICIT) / SURPLUS FOR THE YEAR
Transfers between funds
Funds brought forward at 1 July
FUNDS CARRIED FORWARD 30 JUNE		 Unrestricted
£
21,618		 Restricted
£
5,425		 2022
Total
£
27,043
51
172
82
50
-
-
-
521
1,318
2,496
-
24
-
345
86
235
1,631
7,011
1,741
1,741
9,734
35,795
37,173
1,378
-
8,154
£ 9,532		 2021
Total
£
26,948
51
172
82
50
-
-
-
521
1,318
2,496
-
24
-
345
86
235
1,631		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 -
127
(58)
-
23
473
16
512
703
2,496
296
349
78
252
22
-
3,410
7,011 - 8,699
1,741 -
 1,620
1,741 - 1,620
9,734 - 21,642
35,795 5,425 37,267
31,173 6,000 98,706
(4,622)
-
8,154		 575
-
-		 61,439
-
(53,285)
£ 3,532 £ 575 £ 8,154

21