**Charity registration number 1187484**
**Company registration number 11989947 (England and Wales)**
## **SOUND ROOMS LTD**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **SOUND ROOMS LTD**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Directors**|Mr C E Cade|
|---|---|
||Mr P Chivers|
||Mr A Comben|
|**Secretary**|Mr S C Dance|
|**Charity number**|1187484|
|**Company number**|11989947|
|**Registered office**|Kintyre House|
||70 High Street|
||Fareham|
||Hampshire|
||United Kingdom|
||PO16 7BB|
|**Independent examiner**|Alliott Wingham Limited|
||Kintyre House|
||70 High Street|
||Fareham|
||Hants|
||PO16 7BB|
## **SOUND ROOMS LTD**
## **CONTENTS**
||**Page**|
|---|---|
|Directors' report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Statement of cash flows|6|
|Notes to the financial statements|7 - 11|
## **SOUND ROOMS LTD**
## **DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 AUGUST 2023**_
The directors present their annual report and financial statements for the year ended 31 August 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document dated 21 January 2021, the Companies Act 2006 and "Accounting and Reporting by Charities: 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)" (effective 1 January 2019).
## **Objectives and activities**
## _Public benefit_
The directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## _Activities_
Sound Rooms provides inclusive music education and training to children, young people and adults across Brighton and beyond. Young people, especially those with SEND, face many barriers to playing music mainly due to a lack of opportunities to develop their music skills. Sound Rooms is a unique and exciting development which will tackle these barriers by driving a step change in music education.
## **Achievements and performance**
## _Significant activities and achievements against objectives_ **Financial review**
## _Reserves policy_
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The directors consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
## **Structure, governance and management**
The charity is a company limited by guarantee.
The directors who served during the year and up to the date of signature of the financial statements were: Mr C E Cade
Mr P Chivers
Mr A Comben
## _Recruitment and appointment of trustees_
None of the directors has any beneficial interest in the company. All of the directors are members of the company and guarantee to contribute £1 in the event of a winding up.
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
- settle the terms of payment with suppliers when agreeing the terms of each transaction;
- ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
- pay in accordance with the company's contractual and other legal obligations.
## _Organisational structure_
- 1 -
## **SOUND ROOMS LTD**
## **DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2023**_
The directors' report was approved by the Board of Directors.
Mr C E Cade **Director**
29 February 2024
- 2 -
## **SOUND ROOMS LTD**
## **INDEPENDENT EXAMINER'S REPORT TO THE DIRECTORS OF SOUND ROOMS LTD**
I report to the directors on my examination of the financial statements of Sound Rooms Ltd (the charity) for the year ended 31 August 2023.
## **Responsibilities and basis of report**
As the directors of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination 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 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
- 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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.
## **Alliott Wingham Limited**
Kintyre House 70 High Street Fareham Hants PO16 7BB
Dated: 29 February 2024
- 3 -
## **SOUND ROOMS LTD**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 AUGUST 2023**_
|||**Unrestricted**|**Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**2023**|**2022**|
||**Notes**|**£**|**£**|
|**Income from:**||||
|Charitable activities|**2**|50,158|31,775|
|Charitable expenditure|**3**|27,714|23,770|
|**Net income and movement in funds**||22,444|8,005|
|**Reconciliation of funds:**||||
|Fund balances at 1 September 2022||8,005|-|
|**Fund balances at 31 August 2023**||30,449|8,005|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
- 4 -
## **SOUND ROOMS LTD**
## **BALANCE SHEET**
## _**AS AT 31 AUGUST 2023**_
|**Notes**
**Current assets**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**8**
Net current assets
**The funds of the charity**
Unrestricted funds|**2023**
**£**
43,266
12,817|**£**
30,449
30,449
30,449|**2022**
**£**
19,807
11,802|**£**
8,005|
|---|---|---|---|---|
|||||8,005|
|||||8,005|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2023.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the directors on 29 February 2024
Mr C E Cade **Trustee**
Company registration number 11989947 (England and Wales)
- 5 -
## **SOUND ROOMS LTD**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 AUGUST 2023**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**11**
**Net cash used in investing activities**
**Financing activities**
Repayment of borrowings
**Net cash (used in)/generated from**
**financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2023**
**£**
-|**£**
23,459
-
-
23,459
19,807
43,266|**2022**
**£**
592|**£**
19,215
-
592|
|---|---|---|---|---|
|||||19,807
-|
|||||19,807|
- 6 -
## **SOUND ROOMS LTD**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2023**_
## **1 Accounting policies**
## **Charity information**
Sound Rooms Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Kintyre House, 70 High Street, Fareham, Hampshire, PO16 7BB, United Kingdom.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: 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)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the directors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the directors in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
- 7 -
## **SOUND ROOMS LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2023**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
## **1.6 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.7 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
- 8 -
## **SOUND ROOMS LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2023**_
## **2 Income from charitable activities**
|||**Unrestricted**|**Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**2023**|**2022**|
|||**£**|**£**|
||**Income**|||
||Sale of goods|50,158|31,775|
|**3**|**Expenditure on charitable activities**|||
||**Charitable**|**Charitable**|
|---|---|---|
||**Expenditure**|**Expenditure**|
||**2023**|**2022**|
||**£**|**£**|
|**Direct costs**|||
|Rates|-|1,137|
|Cleaning|13,571|9,632|
|Computer Running Costs|450|421|
|Insurance|2,342|2,103|
|Telephone|78|60|
|Sundry|13|13|
|Penalties|-|150|
|Accountancy|525|654|
|Power, light & heat|963|9,600|
|Legal & Professional fees|9,748|-|
|Printing, postage & stationery|24|-|
||27,714|23,770|
|**Analysis by fund**|||
|Unrestricted funds|27,714|23,770|
## **4 Directors**
None of the directors (or any persons connected with them) received any remuneration or benefits from the charity during the year.
## **5 Employees**
The average monthly number of employees during the year was:
|**2023**|**2022**|
|---|---|
|**Number**|**Number**|
|3|3|
There were no employees whose annual remuneration was more than £60,000.
- 9 -
## **SOUND ROOMS LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2023**_
## **6 Taxation**
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
## **7 Loans and overdrafts**
|**Loans and overdrafts**|||
|---|---|---|
|Directors' loans
Payable within one year
**Creditors: amounts falling due within one year**
Borrowings
Accruals and deferred income|**2023**
**£**
592
592
**2023**
**£**
592
12,225
12,817|**2022**
**£**
592|
|||592|
|||**2022**
**£**
592
11,210|
|||11,802|
## **8 Creditors: amounts falling due within one year**
## **9 Unrestricted funds**
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
||**At 1**|**Incoming**|**Resources**|**At 31 August**|
|---|---|---|---|---|
||**September**|**resources**|**expended**|**2023**|
||**2022**||||
||**£**|**£**|**£**|**£**|
|General funds|8,005|50,158|(27,714)|30,449|
|**Previous year:**|**At 1**|**Incoming**|**Resources**|**At 31 August**|
||**September**|**resources**|**expended**|**2022**|
||**2021**||||
||**£**|**£**|**£**|**£**|
|General funds|-|31,775|(23,770)|8,005|
## **10 Related party transactions**
There were no disclosable related party transactions during the year (2022 - none).
- 10 -
## **SOUND ROOMS LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2023**_
|**11**
**Cash generated from operations**
Surplus for the year
Movements in working capital:
Increase in creditors
**Cash generated from operations**|**2023**
**£**
22,444
1,015
23,459|**2022**
**£**
8,005
11,210|
|---|---|---|
|||19,215|
## **12 Analysis of changes in net funds**
The charity had no material debt during the year.
- 11 -