## **Trustees’ Annual Report for the Year April 2023 - March 2024 Registration number** : 1185747 **Thornton Heath Leisure Centre** 100 High Street, Thornton Heath, CR7 8LF ## Trustees During the Year - **Jonathan Bob-Amara** (Chair) - **Blyth Weston** (Treasurer) - **Kofi Dwinfour** - **Magdalene Usikaro (previously Adenaike)** Following Mr. Bob-Amara's death in December 2023, Kofi Dwinfour was elected Chair at the January 2024 board meeting, and **Adrian Thompson** joined the board. ## Objects of the Charity 1. **Advancing in life and relieving the needs of socially and economically disadvantaged young people** through: - The provision of music-based recreational and leisure time activities designed to improve their conditions of life. - Providing support and activities that develop their skills, capacities, and capabilities to enable them to participate in society as mature and responsible individuals. 2. **Promoting social inclusion** by preventing the continued social exclusion of young people and assisting them in integrating into society. 3. **Relieving unemployment** by providing assistance to young people in finding employment. ## Our Work During the Year The charity has been involved in a number of significant activities during the period: 1. **NHS Winter Vaccine Talk** : A community meeting to create awareness on the importance of winter health. 2. **An Evening with Series** : - _An Evening with Women in Jazz Media_ (March 2023), featuring guests Fiona Small and Adyenne Simone (AKA Big Mama). - _An Evening with Afrobeat Supremo_ – Dele Sosimi (Sept. 2023). 3. **Launch of Thornton Heath Afrobeat (THABO)** (April 2023). 4. **MRF Open Day** (May 2023), featuring choirs from Whitehorse Juniors and Winterbourne Girls Primary Schools. 5. **Change of MRF Payment Infrastructure** (Oct. 2024). 6. **Launch of MRF Safe Space – Girls Forum (Amplify Her Voice)** (Nov. 2023). 7. **Inception of MRF Community Choir** (Nov. 2023). ## Achievements and Performance, Including Public Benefit Since the launch of the MRF Music School in November 2021, the charity has experienced significant growth in terms of engagement. A notable increase in first-time users was observed, with many returning for ongoing services. The MRF Music School quickly became a vital resource, particularly for the home-education community. It offered a welcoming environment for children, many of whom demonstrated neurodiversity, to express themselves musically. This nonjudgmental space fostered personal growth and improved the students' social skills, emotional regulation, and academic focus. **Testimonial from a Parent** _: "We love MRF because they work at grassroots level in their local community. Since joining, we can see how their services have impacted the lives of our children. MRF keeps our children engaged and adds value to their lives. Playing the musical instruments has helped our children with their needs. They are now able to concentrate and remain calm. It has also improved their ability to focus & pay attention, reduced anxiety, and improved emotional regulation. We are grateful for the amazing work MRF is doing."_ The Music School’s success is largely attributed to its affordable pricing (£17 per term), which has encouraged strong word-of-mouth referrals and resulted in a growth of over 300% in the first year. However, as demand increased, so did operational costs, leading to financial difficulties. ## **Key Findings** : 1. **Increased Expenses** – tutor and staff costs. 2. **Insufficient Funds** – leading to delayed payments and a growing debt. 3. **Poor Lesson Attendance** – partially due to the abuse of the low pricing structure, making it unsustainable. ## Financial Struggles and Recovery Efforts Despite increased student numbers, the Music School faced significant financial challenges. In June 2023, the trustees closed the Music School early to prevent further financial strain. However, the team worked relentlessly to secure funding and explore partnerships. In August 2023, a significant donation of £30,000 from a long-time supporter allowed the charity to clear outstanding debts and reopen the school in September 2023 with a revised pricing structure. Additional donations raised the total support to £40,000. Despite this, the Music School continued to experience financial instability, leading to resignations in December 2023 and January 2024, severely understaffing the organisation. A breakthrough came in February 2024, when the charity secured £100,000 over two years from the **National Lottery Million Hours Fund** for the After School Club, which helped restore financial stability and morale. ## Financial Overview ## Income - **Total income** decreased by 63%, from **£81,655 (March 2023)** to **£30,329 (March 2024)** . This drop is attributed to the financial strain from the Music School's closure and staffing changes. ## Donations and Funding - **Individual Donor** : £30,000 donation in August 2023, and an additional £10,000 in support. - **National Lottery** : £100,000 grant for the After School Club. - **PWC & Neil ‘Mad Professor’ Fraser** : £250 Donations. - **NHS & AFRUCA** : Contributions towards health and community-focused initiatives - £600 ## Looking Forward: Addressing Financial Instability and Building Resilience The trustees recognise the financial instability the charity has faced and are committed to ensuring the organisation is more resilient as we advance. Key strategies include: ## 1. Conduct a Financial Health Check To address the causes of instability, the charity's financial status will be reviewed comprehensively, including assessing cash flow, reserves, and budget projections. ## 2. Develop a Financial Stability Plan The plan will focus on diversifying income streams, building a reserve fund, and improving cash flow management. ## 3. Secure Core Funding for Operational Stability The charity will focus on obtaining funding for core costs (staffing, rent, etc.), allowing the organisation to stabilise and expand services, focusing on long-term sustainability. ## 4. Scale the Music School to Generate Surplus We will continue to explore opportunities for growth, such as increasing tuition fees, offering online lessons, expanding to new locations, and introducing profitable services. A comprehensive growth plan will be developed to increase revenue and profitability. ## Conclusion The past year has been a period of significant challenge, but also of resilience and adaptation. While the charity faced severe financial difficulties, the support from donors and the successful funding bid to the National Lottery have provided a path forward. The trustees and staff are committed to applying the lessons learned to ensure that MRF is more financially secure and able to serve the community for many years to come. The trustees would like to express their sincere gratitude to all those who have supported MRF during this difficult year. We are confident that with ongoing efforts and strategic planning, we will emerge stronger and more capable of fulfilling our mission to support disadvantaged young people through music and community engagement. **Signed on behalf of the Board of Trustees:** Kofi Dwinfour (Chair) Magdalene Usikaro Blyth Weston (Treasurer) Adrian Thompson Date: 21st December 2024 MUSIC RELIEF FOUNDATION MUSIC RELIEF k L)U N L)AI ION WORKING AND SUPPORTING YOUNG PEOPLE AND TME GRASSROOTS COMIAUNI Rewstwed Charfty 1115747 020al832922 W*YWjllU51c￿M•1.Qry InfoOfflu4c-rnM4f.org ## **Music Relief Foundation Financial Activities** ## **April 2023 - March 2024** |**Income**
**Income and endowments from**
**Charitable activites**
**Community Events**
**Enriching Lives - Holiday program**
**Music School**
**Total Charitable activites**
**Donations and legacies**
**Grants**
**Total Donations and legacies**
**Total Income and endowments from**
**Uncategorised Income**
**Total Income**
**Total**
**Expenditures**
**Advertising/Promotional**
**Reproduction & Distribution**
**Total Advertising/Promotional**
**Charitable Activities**
**Community events**
**Enriching Lives - Holiday program**
**Music School**
**Staff education and welfare**
**Payroll Expenses**
**Taxes**
**Wages**
**Total Payroll Expenses**
**Total Staff education and welfare**
**Total Charitable Activities**
**Insurances**
**Interest Payable**
**IT**
**Hosting**
**Software**
**Total IT**
**Office/General Administrative Expenses**
**Marketing**
**Catering**
**Total Marketing**
**Rent or Lease of Buildings**
**Telephone, Internet**
**Total Office/General Administrative Expenses**|**Restricted**
**Funds**
**Unrestricted**
**Funds**
**TOTAL**| |---|---| ||0
4 989
4 989
440
389
829
1 500
1 500
4 674
5
4 679| ||**£ 6 614 £ 5 383 £ 11 997**
5 000
49 606
54 606
694
8 479
9 173| ||**£ 5 694 £ 58 085 £ 63 779**| ||**£ 12 308 £ 63 468 £ 75 775**
0
0| ||**£ 12 308 £ 63 467 £ 75 775**| ||**£ 12 308 £ 63 467 £ 75 775**
438
438
800
800| ||**£ 0 £ 1 238 £ 1 238**
262
262
1 291
155
1 446
7 321
11 948
19 268
500
20 225
20 725
9 100
9 100
833
833
29 725
29 725| ||**£ 0 £ 39 658 £ 39 658**| ||**£ 500 £ 59 883 £ 60 383**| ||**£ 9 111 £ 72 248 £ 81 359**
932
932
99
99
0
356
1 775
2 131
705
705| ||**£ 356 £ 2 480 £ 2 836**
1 703
1 703
200
816
1 016
137
1 479
1 616| ||**£ 337 £ 2 295 £ 2 632**
1 200
1 200
1 485
1 485| ||**£ 337 £ 6 682 £ 7 019**| |**Other Professional Services**
**Payroll Expenses**
**Taxes**
**Wages**
**Total Payroll Expenses**
**Printing, Postage and Stationery**
**Purchases**
**Subcription**
**Travel and Accommodation**
**Subsistence**
**Travel**
**Total Travel and Accommodation**
**Total Expenditures**
**Net Operating Income**
**Other Expenditures**
**Reconciliation Discrepancies**
**Total Other Expenditures**
**Net Other Income**
**Net Income/(Expenditure)**|5 214
5 214
0
314
314
950
950| |---|---| ||**£ 0 £ 1 264 £ 1 264**
43
43
0
0
1 399
1 399
229
229
0
836
836| ||**£ 0 £ 1 065 £ 1 065**| ||**£ 9 804 £ 92 666 £ 102 470**| ||**£ 2 504-£ 29 200 -£ 26 696**
3
3| ||**£ 0 £ 3 £ 3**| ||**£ 0-£ 3 -£ 3**| ||**£ 2 504-£ 29 203 -£ 26 699**| ## **BOARD OF TRUSTEES RESPONSIBILITIES STATEMENT** ## **Board of Trustees responsibilities statement** The Trustees (who are also directors of **Music Relief Foundation (Charity No. 1185747)** for the purposes of company law) are responsible for preparing the Trustees report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period. In preparing these financial statements, the Trustees are required to: 1. Select suitable accounting policies and then apply them consistently; 2. Observe the methods and principles in the Charities SORP FRS 102; 3. Make judgments and accounting estimates that are reasonable and prudent; 4. State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 5. Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The Board of Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In preparing this report, the Trustees have taken advantage of the small companies' exemptions provided by section 415A of the Companies Act 2006. This report was approved by the Board of Trustees on and signed on their behalf by: **Magdalene Usikaro Founder and Chief Executive Officer** **Date: 29[th] January 2025** ## **INDEPENDENT EXAMINERS REPORT FOR THE YEAR ENDED 31 MARCH 2024** ## **Independent examiner's report to the trustees of Music Relief Foundation (Charity No. 1185747)** I report on the accounts of the charity for the year ended 31 March 2024 which are set out on pages 4 to 6. ## **Respective responsibilities of trustees and examiner** The charity’s trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (“the 2011 Act”) or under Regulation (10)(1)(a)-(c) of the Charities Accounts (Scotland) Regulations 2006 (as amended) (“the 2006 Regulations”) and that an independent examination is needed. Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to: - examine the accounts under section 145 of the 2011 Act and under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 (“the 2005 Act”); - to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and - to state whether particular matters have come to my attention. ## **Basis of independent examiner's statement** My examination is carried out in accordance with the general Directions given by the Charity Commission and Regulation 11 of the 2006 Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeks explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a “true and fair view”, and the report is limited to those matters set out in the statement below. **Page 2 of 6** ## **INDEPENDENT EXAMINERS REPORT FOR THE YEAR ENDED 31 MARCH 2024** ## **Independent examiner's statement** In connection with my examination, no matter came to my attention:- 1. which gives me reasonable cause to believe that in any material respect, the requirements - to keep accounting records in accordance with section 386 of the Companies Act 2006, section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Regulations; and - to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Companies Act 2006, section 44(1)(b) of the 2005 Act and Regulation 8 of the 2006 Regulations; and - which are consistent with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities, have not been met, or 2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. David Frederick FCCA Marcus Bishop Associates Suite 103 Access Business Centre 3 Stanton Way London SE26 5FU **Dated** : 29[th] January 2025 **Page 3 of 6** ## **INDEPENDENT EXAMINERS REPORT FOR THE YEAR ENDED 31 MARCH 2024** ## **Music Relief Foundation Statement Of Financial Activities For The year ended 31st March 2024** |**Income**
**Charitable Activities**
Community Events
Enriching Lives - Holiday program
Music School
**Total**
**Donations and Legacies**
**Grants**
**Total**
**Total Income**
**Expenditure**
Charitable Activities
Enriching Lives - Holiday program
Music School
Staff education and welfare
Payroll Expenses
Taxes
Wages
**Total Charitable Activities**
**Administration**
Advertising
Reproduction & Distribution
Insurances
Interest Payable
Hosting|**Charity Funds**
**Restricted**
**£**
**Unrestricted**
**£**
0
4,989
440
389
1,500
0
4,674
5|**Total**
**£**
4,989
829
1,500
4,679| |---|---|---| ||**6,614**
**5,383**
5,000
49,606
694
8,479|**11,997**
54,606
9,173| ||**5,694**
**58,085**|**63,779**| |||| ||**12,308**
**63,468**|**75,776**| ||**Restricted**
**£**
**Unrestricted**
**£**
0
262
1,291
155
7,321
11,948
500
20,225
0
9,100
0
833
0
29,725|**Total**
**£**
262
1,446
19,269
20,725
9,100
833
29,725| ||**9,112**
**72,248**|**81,360**| ||0
438
0
800
0
932
0
99
356
1,775|438
800
932
99
2,131| **Page 4 of 6** ## **INDEPENDENT EXAMINERS REPORT FOR THE YEAR ENDED 31 MARCH 2024** |Software
General Administrative Expenses
Marketing
Catering
Rent or Lease of Buildings
Telephone, Internet
Other Professional Services
Taxes
Wages
Printing, Postage and Stationery
Subscription
Travel and Accommodation
Travel
**Sub Total**
**Total Expenditure**
**Net Income**|0
705
0
1,706
200
816
137
1,479
0
1,200
0
1,485
0
5,214
0
314
0
950
0
43
0
1,399
0
229
0
836|705
1,706
1,016
1,616
1,200
1,485
5,214
314
950
43
1,399
229
836| |---|---|---| ||693
20,420|21,113| ||**9,805**
**92,668**|**102,473**| |||| ||**2,503**
**(29,200)**|**(26,697)**| **Page 5 of 6** ## **INDEPENDENT EXAMINERS REPORT FOR THE YEAR ENDED 31 MARCH 2024** ## **Music Relief Foundation Statement of** ## **Financial Position** ## **As At 31st March 2024** |**As At 31st March 2024**|| |---|---| |**Charity Funds**
**Restricted**
**Unrestricted**
**Current Assets**
**£**
**£**
Bank
0
7,934
Debtors
0
8,590|**Total**
**£**
7,934
8,590| |**0**
**16,524**
**Creditors: Due within one year**
Creditors
0
1,700
Net Salaries
0
26,562
Other Taxes & Social Securities
0
1,188|16,524
1,700
26,562
1,188| |**0**
**29,450**
**Net Current Assets**
**0**
**(12,926)**
**Creditors: Due over one year**
Bank Loan
0
11,000|29,450
(12,926)
11,000| |**Total Net Assets**
**0**
**(23,926)**|**(23,926)**| |**Charity Funds**
**Opening Balance Equity**
76,682
(73,911)
**Retained Earnings**
2,503
(29,200)|2,771
(26,697)| |**Total Charity funds**
**79,185**
**(103,111)**|**(23,926)**| **Page 6 of 6**