DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK** 

(Registered charity numbers 1167021 & SC048913) 

## **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023** 

**HPH Chartered Accountants 54 Bootham YORK YO30 7XZ** 



DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK** 

## **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023** 

|**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: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK** 

## **TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2023** 

The Trustees have pleasure in presenting their Annual Report and the Financial Statements for the year ended 30 June 2023. 

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and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.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 resourcing for churches to establish these activities for families; 

3. ensuring the activities have educational outcomes for children and ensuring for the parent or care giver, encouragement and enablement 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** 

To date, we are excited by the outcomes of the financial year 2022/23. 

1. An increase in influence Churches continue to join the network by establishing mainly music and mainly play groups as a method to connect with families in their community. 

While growth contributes to successful financial outcomes, there are other celebrations to be noted: 

- (a) Families notice how their previously withdrawn Covid-babies are now confident and engaging in the session, providing them with experiences that prepare them for nursery and school. Others report how their children thrive as a result of their involvement. One mother cried when her child had to leave the group for nursery 

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DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2023 CONTINUED** 

   - (b) A grandparent will attend without her grandchild just because she appreciates the sense of community. Research shows that community engagement assists positively with emotional health. 

   - (c) A mother shared how her child, who has additional support needs, has benefited from attending the group. She expressed how she wished her child had attended earlier. Experience from other mainly music groups indicates that parents love the attention given to them, as well as their child, from the volunteer team. This is juxtaposed to other services where the child is the focus of care and the parent almost invisible 

2. Volunteers 

   - Engagement by volunteers is essential to the health and well-being of the families who attend. It cannot be overlooked that volunteers also receive benefits to their emotional well-being from contributing to the lives of others, participating in an activity with a team where the outcomes are greater than what they can do alone. One volunteer commented, ‘I really value our team and the support it provides to me personally” 

3. Product sales We were pleased with product sales and continue to develop resources that provide support to the groups operating mainly music and mainly play. 

4. Operating expenses 

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

5. Grants and donations While unsuccessful in the acquisition of grants in this financial year, we were grateful for an increase in the total donations. In 2023/24, there is a focus on increasing donor engagement 

It is always the stories that motivate the organisation; that is, Board, staff, and volunteer teams. A significant number are received each year. Here are a few that provide an overview: 

- For a number of months, a mother parenting on her own and living in a refuge has been joining in sessions. We are privileged to support her in many ways. Her confidence in disclosing her needs has made us aware that we are creating a place of trust for her. 

- We love it when parents whose children leave for school don’t want to discontinue attending. Some have stayed as helpers. 

- A mother receiving chemotherapy prioritises sessions, saying they are a positive life line for her. 

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DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2023 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: 

- (a) a copy of the current version of the constitution; and 

- (b) a copy of the CIO's latest Trustees' Annual Report and Financial Statements; 

- (c) a copy of the Board Manual referred to in clause 25 of the constitution which the new trustee shall sign indicating his/her agreement to be bound by its terms. 

## **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 2023 amounted to £38,591 (2022: £37,173), with total expenditure amounting to £49,600 (2022: £35,795) giving rise to a deficit of £11,009 (2022: surplus £1,378). The principal source of income derives from membership which increased in the year to £26,893 (2022: £20,849). Sales of merchandise reduced to £6,723 (2022: £8,730). Cost of sales and direct expenditure decreased to £6,671 (2022: £8,978) and salary and staff costs increased to £17,594 (2022: £17,083); membership support costs increased to £3,049 (2022: £982) and administration costs increased to £20,534 (2022: £7,011). 

## _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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DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2023 CONTINUED** 

## _Reserves_ 

At 30 June 2023 the Charity had total negative funds of £1,477 all of which are unrestricted. The organisations main income source (membership) increased by £6,044 from last financial year which is a positive sign of growth.  However, this was not sufficient to offset the overall increase in operational costs. The Charity plans to turn this around and increase its total positive 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: 

- ensure that the Charity does not become insolvent; 

- meet unforeseen expenditure and provide flexibility in meeting growing demands; 

- cover short term timing differences between income receipts and outgoing payments; 

- consider alternative income streams that contribute to the organisation’s activities and do not detract from serving the purpose; 

- give the Charity time to consider other options to raise money or to cover operational costs and commitments should the decision be taken to wind the Charity down. 

The Charity is very conscious that 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 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 2023/24 year is four-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 product sales due to improvement in our digital platforms, in addition to the “In Person” conference to be held in 2023. This will provide a boost to cash flow and the assist with building the Reserves. 

3. We are focused on Donor engagement with a rollout of a new program in 2023. 

4. We are focused on increasing the number of grant applications that will provide opportunities to support existing groups in areas of deprivation and establish new initiatives for growth generation. Already, in the first month of this year, grant funds have been awarded to the Charity from applications submitted in 2022. 

5. We are seeking other methods of grant applications, such as denominational organisations who provide funds towards churches interested in establishing activities such as mainly music, mainly play, and mainly babies. 

## _**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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DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2023 CONTINUED** 

## _**Administrative details**_ 

|Registered name of the charity:|Mainly Music UK<br>mainly music UK<br>1167021 / SC048913<br>Astwood Law<br>39, Prospect Hill<br>Redditch<br>Worcestershire<br>B97 4BS<br>24 Manor Lane<br>PO Box 7246<br>Stourbridge<br>West Midlands<br>DY8 9GE<br>5 South Charlotte Street<br>Edinburgh<br>EH2 4AN<br>mainlymusic.org.uk<br>uksupportcentre@mainlymusic.org<br>0800 112 0382<br>Mrs Victoria Duce<br>Mrs Josephine Mary Hood<br>Ms Pamela Maclure (Resigned 19 June 2023)<br>Mr David MacLennan<br>Mr John Martin – Chair<br>Lloyds Bank plc<br>2 Pavement<br>York<br>YO1 9UP<br>Sarah Wearing, FCA, DChA<br>HPH, Chartered Accountants<br>54 Bootham<br>York<br>YO30 7XZ|
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|Working name:||
|Registered Charity Numbers:||
|Principal Office Address:||
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|Operations Address:||
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|Scottish Office Address:||
|Website:||
|Email:||
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|Telephone:||
|Trustees:||
|Bankers**:**||
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|Independent Examiner:||
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DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2023 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: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgments and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

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 17 August 2023 and signed on their behalf by: 

……………………………………………….. 

John Martin - Trustee 

6 



DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **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 2023. 

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 17 August 2023 

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

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DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2023** 

|_Notes_<br>**Income and endowments from:**<br>**Donations**<br>_2_<br>**Income from charitable activities**<br>_3_<br>**Income from trading activities**<br>_4_<br>**Total income**<br>**Expenditure on:**<br>**Trading activities**<br>_6_<br>**Charitable activities**<br>_6_<br>**Total expenditure**<br>**Reconciliation of funds:**<br>Total funds brought forward at 1 July<br>**Total funds carried forward at 30 June**<br>**Net (expenditure)/income for the**<br>**year and net movement in funds**|_Unrestricted_<br>_Funds_<br>_£_<br>3,891<br>27,977<br>6,723|_Restricted_<br>_Funds_<br>_£_<br>-<br>-<br>-|_Total_<br>_2023_<br>_£_<br>3,891<br>27,977<br>6,723|_Total_<br>_2022_<br>_£_<br>6,868<br>21,575<br>8,730|
|---|---|---|---|---|
||38,591|-|38,591|37,173|
||6,671<br>40,164|-<br>2,765|6,671<br>42,929|8,978<br>26,817|
||46,835|2,765|49,600|35,795|
||(8,244)<br>6,767|(2,765)<br>2,765|(11,009)<br>9,532|1,378<br>8,154|
||£ ( 1,477)|£ -|£ ( 1,477)|£ 9,532|



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._ 

8 



DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK BALANCE SHEET AT 30 JUNE 2023** 

## _**(Registered charity numbers 1167021 & SC048913)**_ 

|_Notes_<br>**Current assets:**<br>Stock<br>Debtors<br>_8_<br>Cash at bank and in hand<br>**Total current assets**<br>**Liabilities:**<br>_9_<br>**Net current assets**<br>**Total assets less current liabilities**<br>**Total net assets**<br>**The funds of the charity:**<br>Unrestricted funds<br>_10_<br>Restricted funds<br>_10_<br>**Total charity funds**<br>**Creditors: amounts falling due**<br>**within one year**|_Unrestricted_<br>_Funds_<br>_£_<br>5,863<br>1,288<br>4,966|_Restricted_<br>_Funds_<br>_£_<br>-<br>-<br>-|_Total_<br>_2023_<br>_£_<br>5,863<br>1,288<br>4,966|_Total_<br>_2022_<br>_£_<br>7,004<br>1,996<br>5,718|
|---|---|---|---|---|
||12,117|-|12,117|14,718|
||13,594|-|13,594|5,186|
||(1,477)|-|(1,477)|9,532|
||(1,477)|-|(1,477)|9,532|
||£ (1,477)|£ -|£ (1,477)|£ 9,532|
||(1,477)<br>-|-<br>-|(1,477)<br>-|6,767<br>2,765|
||£ (1,477)|£ -|£ (1,477)|£ 9,532|



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

_Approved by the Trustees on 17 August 2023 and signed on their behalf by:_ 

……………………………………………. 

John Martin - Trustee 

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DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023** 

## **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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DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 JUNE 2023** 

## **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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DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 JUNE 2023** 

## **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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DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 JUNE 2023** 

## **2. GRANTS AND DONATIONS** 

|Donations<br>Grants|_Unrestricted_<br>_£_<br>3,891<br>-|_Restricted_<br>_£_<br>-<br>-|_Total_<br>_Total_<br>_2023_<br>_2022_<br>_£_<br>_£_<br>3,891<br>868<br>-<br>6,000<br>£ 3,891<br>£ 6,868|
|---|---|---|---|
||£ 3,891|£ -||



Restricted income in the prior year was £6,000 in grants and 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<br>Other income<br>**4.**<br>**INCOME FROM TRADING ACTIVITIES**<br>Sales of merchandise<br>**5.**<br>**NET EXPENDITURE FOR THE YEAR**<br>after charging:<br>Independent examiner's fee<br>Accountants' remuneration - statutory accounts production<br>Net expenditure for the year is stated|_Total_<br>_Total_<br>_2023_<br>_2022_<br>_£_<br>_£_<br>26,893<br>20,849<br>1,084<br>726<br>£ 27,977<br>£ 21,575<br>_Total_<br>_Total_<br>_2023_<br>_2022_<br>_£_<br>_£_<br>£ 6,723<br>£ 8,730<br>_2023_<br>_2022_<br>_£_<br>_£_<br>882<br>871<br>870<br>870<br>_Unrestricted Funds_<br>_Unrestricted Funds_|_Total_<br>_Total_<br>_2023_<br>_2022_<br>_£_<br>_£_<br>26,893<br>20,849<br>1,084<br>726<br>£ 27,977<br>£ 21,575<br>_Total_<br>_Total_<br>_2023_<br>_2022_<br>_£_<br>_£_<br>£ 6,723<br>£ 8,730<br>_2023_<br>_2022_<br>_£_<br>_£_<br>882<br>871<br>870<br>870<br>_Unrestricted Funds_<br>_Unrestricted Funds_|
|---|---|---|
||_2023_<br>_£_<br>882<br>870|_2022_<br>_£_<br>871<br>870|



13 



DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 JUNE 2023** 

## **6. TOTAL EXPENDITURE** 

|**TOTAL EXPENDITURE**|||||
|---|---|---|---|---|
|Cost of goods sold and<br>direct expenses<br>Charitable expenditure<br>Governance costs<br>**Total expenditure**|_Trading_<br>_cost of_<br>_sales_<br>_£_<br>6,671<br>-<br>-|_Staff_<br>_costs_<br>_£_<br>-<br>17,594<br>-|_Support_<br>_costs_<br>_£_<br>-<br>23,583<br>1,752|_Total_<br>_Total_<br>_2023_<br>_2022_<br>_£_<br>_£_<br>6,671<br>8,978<br>41,177<br>25,076<br>1,752<br>1,741<br>£ 49,600<br>£ 35,795|
||£ 6,671|£ 17,594|£ 25,335||



£1,602 Costs of goods sold and direct expenses was restricted (2022 - £2,398) and £1,163 staff costs (2022 - £3,027.) 

|Analysis of support costs:<br>Membership costs and service charges<br>Office and administration costs<br>Governance costs<br>**EMPLOYEE COSTS AND TRUSTEES' REMUNERATION**<br>Wages and salaries<br>The average monthly number of employees for the year was as follows:<br>Administration|_Total_<br>_Total_<br>_2023_<br>_2022_<br>_£_<br>_£_<br>3,049<br>982<br>20,534<br>7,011<br>1,752<br>1,741<br>£ 25,335<br>£ 9,734<br>_Total_<br>_Total_<br>_2023_<br>_2022_<br>_£_<br>_£_<br>17,232<br>16,698<br>£ 17,232<br>£ 16,698<br>_2023_<br>_2022_<br>3<br>3<br>_Unrestricted Funds_|_Total_<br>_Total_<br>_2023_<br>_2022_<br>_£_<br>_£_<br>3,049<br>982<br>20,534<br>7,011<br>1,752<br>1,741<br>£ 25,335<br>£ 9,734<br>_Total_<br>_Total_<br>_2023_<br>_2022_<br>_£_<br>_£_<br>17,232<br>16,698<br>£ 17,232<br>£ 16,698<br>_2023_<br>_2022_<br>3<br>3<br>_Unrestricted Funds_|
|---|---|---|
||£ 25,335|£ 9,734|
||_Total_<br>_2023_<br>_£_<br>17,232|_Total_<br>_2022_<br>_£_<br>16,698|
||£ 17,232|£ 16,698|
||_2023_<br>3|_2022_<br>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 (2022 - none) were reimbursed expenses (2022 - £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 (2022 - £Nil). 

14 



DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 JUNE 2023** 

## **8. DEBTORS** 

|**DEBTORS**||||
|---|---|---|---|
|Trade debtors<br>Other debtors<br>Prepayments|_Unrestricted_<br>_Funds_<br>_£_<br>917<br>-<br>371|_Restricted_<br>_Funds_<br>_£_<br>-<br>-<br>-|_Total_<br>_Total_<br>_2023_<br>_2022_<br>_£_<br>_£_<br>917<br>1,725<br>-<br>11<br>371<br>260<br>£ 1,288<br>£ 1,996<br>_Unrestricted Funds_|
||£ 1,288|£ -||



## **9. CREDITORS: amounts falling due within one year** 

|Trade creditors<br>Taxation and social security<br>Accruals and deferred income<br>**Deferred income**<br>Balance brought forward<br>Amount released in the year<br>Amount deferred in the year<br>Balance carried forward|_Total_<br>_Total_<br>_2023_<br>_2022_<br>_£_<br>_£_<br>11,854<br>3,214<br>-<br>28<br>1,740<br>1,944<br>£ 13,594<br>£ 5,186<br>-<br>105<br>-<br>(105)<br>-<br>-<br>£ -<br>£ -<br>_Unrestricted Funds_|_Total_<br>_Total_<br>_2023_<br>_2022_<br>_£_<br>_£_<br>11,854<br>3,214<br>-<br>28<br>1,740<br>1,944<br>£ 13,594<br>£ 5,186<br>-<br>105<br>-<br>(105)<br>-<br>-<br>£ -<br>£ -<br>_Unrestricted Funds_|
|---|---|---|
||£ 13,594|£ 5,186|
||-<br>-<br>-|105<br>(105)<br>-|
||£ -|£ -|



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

15 



DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 JUNE 2023** 

## **10. FUNDS** 

|**_Current year_**<br>Unrestricted funds<br>Restricted funds<br>New Groups<br>Groups in Scotland<br>**_Comparative year_**<br>Unrestricted funds<br>Restricted funds|_Balance at_<br>_1 July_<br>6,767<br>-<br>260<br>2,505|_Income_<br>38,591<br>-<br>-|_Expenditure_<br>(46,835)<br>(260)<br>(2,505)|_Transfers_<br>-<br>-<br>-<br>-|_Balance at_<br>_30 June_<br>(1,477)<br>-<br>-<br>-|
|---|---|---|---|---|---|
||2,765|-|(2,765)|-|-|
|||||||
||£ 9,532|£ 38,591|£ (49,600)|£ -|£ (1,477)|
||_Balance at_<br>_1 July_<br>5,964<br>2,190|_Income_<br>31,173<br>6,000|_Expenditure_<br>(30,370)<br>(5,425)|_Transfers_<br>-<br>-|_Balance at_<br>_30 June_<br>6,767<br>2,765|
||£ 8,154|£ 37,173|£ (35,795)|£ -|£ 9,532|



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_<br>Unrestricted funds<br>Restricted funds<br>_Comparative year_<br>Unrestricted funds<br>Restricted funds|_Fixed_<br>_assets_<br>_£_<br>-<br>-|_Current_<br>_assets_<br>_£_<br>12,117<br>-|_Current_<br>_liabilities_<br>_£_<br>(13,594)<br>-|_Total_<br>2023<br>_£_<br>(1,477)<br>-|
|---|---|---|---|---|
||£ -|£12,117|£ ( 13,594)|(£1,477)|
||_Fixed_<br>_assets_<br>£<br>-<br>-|_Current_<br>_assets_<br>_£_<br>11,953<br>2,765|_Current_<br>_liabilities_<br>_£_<br>(5,186)<br>-|_Total_<br>2022<br>_£_<br>6,767<br>2,765|
||£ -|£14,718|£ ( 5,186)|£9,532|



16 



DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 JUNE 2023** 

## **12. RELATED PARTIES** 

## _mainly music (Australia) Limited_ 

Income amounting to £63 (2022 - £nil) was received in the year in respect of sales of materials and resources to mainly music (Australia) Limited. Expenditure amounting to £13,519 (2022 - £1,791) was incurred during the year in respect of materials, resources and service charges from mainly music (Australia) Limited. At 30 June 2023 £nil (2022 - £nil) was owed by mainly music (Australia) Limited, and £11,534 (2022 - £3,020) 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 £15 (2022 - £335) was received in the year in respect of sales of materials and resources to mainly music International Trust. Expenditure amounting to £823 (2022 - £46) was incurred during the period in respect of materials and resources from mainly music International Trust. At 30 June 2023 £nil (2022 - £nil) was owed by mainly music International Trust, and £nil (2022 - £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 £nil (2022 - £36) was received in the year in respect of sales of materials and resources to mainly music (New Zealand) Limited. Expenditure amounting to £nil (2022 - £98) was incurred during the year in respect of materials, resources and service charges from mainly music (New Zealand) Limited. At 30 June 2023 £nil(2022 - £nil) was owed by mainly music (New Zealand) Limited, and £nil (2022 - £62) 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. 

17 



DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 JUNE 2023** 

## **13. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES** 

|**Income and endowments from:**<br>**Grants and Donations**<br>**Income from charitable activities**<br>**Income from trading activities**<br>**Total income**<br>**Expenditure on:**<br>**Trading activities**<br>**Charitable activities**<br>**Total expenditure**<br>**Reconciliation of funds:**<br>Total funds brought forward at 1 July<br>**Total funds carried forward at 30 June**<br>**Net expenditure for the year and net**<br>**movement in funds**|_Total_<br>_Total_<br>_Year ended_<br>_Year ended_<br>_30 June 2022_<br>_30 June 2021_<br>_£_<br>_£_<br>6,868<br>5,346<br>21,575<br>90,516<br>8,730<br>2,844<br>37,173<br>98,706<br>8,978<br>2,112<br>26,817<br>35,155<br>35,795<br>37,267<br>1,378<br>61,439<br>8,154<br>(53,285)<br>£ 9,532<br>£ 8,154<br>_Unrestricted Funds_|_Total_<br>_Total_<br>_Year ended_<br>_Year ended_<br>_30 June 2022_<br>_30 June 2021_<br>_£_<br>_£_<br>6,868<br>5,346<br>21,575<br>90,516<br>8,730<br>2,844<br>37,173<br>98,706<br>8,978<br>2,112<br>26,817<br>35,155<br>35,795<br>37,267<br>1,378<br>61,439<br>8,154<br>(53,285)<br>£ 9,532<br>£ 8,154<br>_Unrestricted Funds_|
|---|---|---|
||37,173|98,706|
||8,978<br>26,817|2,112<br>35,155|
||35,795|37,267|
||1,378<br>8,154|61,439<br>(53,285)|
||£ 9,532|£ 8,154|



18 



DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

_**The following pages do not form part of the statutory financial statements**_ 



DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK DETAILED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 JUNE 2023** 

|**INCOME**<br>**Grants and donations**<br>Donations<br>Grants<br>_Total grants and donations_<br>**_Membership_**<br>Membership - group subscriptions<br>Membership - mainly play<br>_Total membership income_<br>**_Sales of merchandise_**<br>Sales - general<br>Sales - Christmas<br>Sales - Easter<br>Sales - father's day<br>Sales - mb Sessions<br>Sales - mp Set Up Pack<br>Sales - mother's day<br>Sales - set up pack<br>_Total sale of merchandise_<br>**_Other income_**<br>Postage and handling collected<br>Other income and fundraising<br>_Total other income_<br>**Total income - carried forward**|_Unrestricted_<br>_£_<br>3,891<br>-|_Restricted_<br>_£_<br>-<br>-|_2023_<br>_2022_<br>_Total_<br>_Total_<br>_£_<br>_£_<br>3,891<br>868<br>-<br>6,000<br>3,891<br>6,868<br>26,011<br>20,340<br>882<br>509<br>26,893<br>20,849<br>2,976<br>3,471<br>1,163<br>857<br>874<br>672<br>107<br>44<br>220<br>160<br>-<br>180<br>203<br>106<br>1,180<br>3,240<br>6,723<br>8,730<br>884<br>726<br>200<br>-<br>1,084<br>726<br>**38,591**<br>**37,173**|
|---|---|---|---|
||3,891|-||
||26,011<br>882|-<br>-||
||26,893|-||
||2,976<br>1,163<br>874<br>107<br>220<br>-<br>203<br>1,180|-<br>-<br>-<br>-<br>-<br>-<br>-<br>-||
||6,723|-||
||884<br>200|-<br>-||
||1,084|-||
|||||
||**38,591**|**-**||



19 



DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK DETAILED INCOME AND EXPENDITURE ACCOUNT CONTINUED FOR THE YEAR ENDED 30 JUNE 2023** 

|**EXPENDITURE**<br>**_Cost of sales_**<br>Cost of goods sold<br>Cost of goods sold - Christmas<br>Cost of goods sold - Easter<br>Cost of goods sold - father's day<br>Cost of goods sold - mb session pack<br>Cost of goods sold - mother's day<br>Cost of goods sold - mp set up packs<br>Cost of goods sold - set up packs<br>Discount vouchers issued - set up<br>Direct expenses<br>Freight paid - domestic<br>Inventory adjustment<br>Royalties - artists<br>Royalties - international trust<br>Total cost of sales<br>**_Staff costs_**<br>Staff salaries<br>Salary support office<br>Staff expenses<br>Staff training<br>Total staff costs<br>**_Support Costs_**<br>_Membership costs and service charges_<br>Membership expenses<br>World Service Centre charges<br>_Total membership and service charges_<br>**Expenditure - carried forward**|_Unrestricted_<br>_£_<br>1,663<br>671<br>348<br>54<br>121<br>175<br>41<br>653<br>-<br>103<br>923<br>(30)<br>327<br>20|_Restricted_<br>_£_<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>1,602<br>-<br>-<br>-<br>-|_2023_<br>_2022_<br>_Total_<br>_Total_<br>_£_<br>_£_<br>1,663<br>1,750<br>671<br>559<br>348<br>347<br>54<br>31<br>121<br>136<br>175<br>62<br>41<br>-<br>653<br>1,812<br>-<br>2,085<br>1,705<br>313<br>923<br>991<br>(30)<br>794<br>327<br>62<br>20<br>36<br>6,671<br>8,978<br>12,783<br>13,014<br>4,449<br>3,684<br>362<br>73<br>-<br>312<br>17,594<br>17,083<br>3,049<br>982<br>-<br>-<br>3,049<br>982<br>**27,314**<br>**27,043**|
|---|---|---|---|
||5,069|1,602||
||11,620<br>4,449<br>362<br>-|1,163<br>-<br>-<br>-||
||16,431|1,163||
||3,049<br>-|-<br>-||
||3,049|-||
||**24,549**|**2,765**||



20 



DocuSign Envelope ID: 480D5CA1-7DFF-48F1-9D26-4C803536A22C 

## **MAINLY MUSIC UK DETAILED INCOME AND EXPENDITURE ACCOUNT CONTINUED FOR THE YEAR ENDED 30 JUNE 2023** 

|**Expenditure brought forward**<br>_Office and administration costs_<br>Advertising and marketing<br>Non product advertising<br>Bank fees<br>Foreign exchange variances<br>Contractors<br>Depreciation expense<br>General expenses<br>Insurance<br>IT software and consumables<br>Rent<br>World service centre charges<br>National travel<br>International travel<br>Office equipment (non FA)<br>Repairs and maintenance<br>Postage, freight and courier<br>Printing and stationery<br>Subscriptions<br>Telephone and internet<br>_Total office and administration costs_<br>_Governance costs_<br>Accountancy fees<br>_Total governance costs_<br>**Total support costs**<br>**Total operating expenses**<br>**Total income - brought forward**<br>**NET (DEFICIT) / SURPLUS FOR THE YEAR**<br>Transfers between funds<br>Funds brought forward at 1 July<br>**FUNDS CARRIED FORWARD 30 JUNE**|_Unrestricted_<br>_£_<br>**24,549**|_Restricted_<br>_£_<br>**2,765**|_2023_<br>_2022_<br>_Total_<br>_Total_<br>_£_<br>_£_<br>**27,314**<br>**27,043**<br>46<br>51<br>119<br>-<br>62<br>172<br>56<br>82<br>-<br>50<br>-<br>-<br>87<br>-<br>539<br>521<br>1,224<br>1,318<br>2,496<br>2,496<br>11,518<br>-<br>871<br>-<br>1,254<br>-<br>98<br>24<br>-<br>-<br>325<br>345<br>119<br>86<br>302<br>235<br>1,418<br>1,631<br>20,534<br>7,011<br>1,752<br>1,741<br>1,752<br>1,741<br>**25,335**<br>**9,734**<br>**49,600**<br>**35,795**<br>**38,591**<br>**37,173**<br>(11,009)<br>1,378<br>-<br>-<br>9,532<br>8,154<br>**£ ( 1,477)**<br>**£ 9,532**|
|---|---|---|---|
||46<br>119<br>62<br>56<br>-<br>-<br>87<br>539<br>1,224<br>2,496<br>11,518<br>871<br>1,254<br>98<br>-<br>325<br>119<br>302<br>1,418|-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-||
||20,534|-||
||1,752|-||
||1,752|-||
||**25,335**|**-**||
||**46,835**|**2,765**||
||**38,591**|**-**||
||(8,244)<br>-<br>6,767|(2,765)<br>-<br>2,765||
||**£ ( 1,477)**|**-**<br>**£**||



21