Charity number: 1204512 

**HARMONY WORKS TRUST TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025** 

Document ID: f866a861e2a6b6d7b2cd2ca601a5120e1e304c758e9542324dd17c3d860585a5 



## **HARMONY WORKS TRUST** 

## CONTENTS 

||Page|
|---|---|
|**Reference and administrative details of the charity, its Trustees and advisers**|1|
|**Chairman's statement**|2 - 3|
|**Trustees' report**|4 - 10|
|**Independent auditor's report on the financial statements**|11 - 13|
|**Statement of financial activities**|14|
|**Balance sheet**|15|
|**Statement of cash flows**|16|
|**Notes to the financial statements**|17 - 32|



Document ID: f866a861e2a6b6d7b2cd2ca601a5120e1e304c758e9542324dd17c3d860585a5 



## **HARMONY WORKS TRUST** 

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS _FOR THE YEAR ENDED 31 JULY 2025_ 

|**Trustees**|David Hobson,Chair|
|---|---|
||Karen Burland Clark|
||Hester Cockcroft|
||Denise Edwards|
||Ian Falconer|
||Judith Ceris Morris(appointed 15 September 2025)|
||Ruth McDonald|
||Keith Shivers|
||Peter Kennan(resigned 16 August 2024)|
|**Charity registered number**<br>1204512<br>**Principal office**<br>Office 9 Shirley House<br>31 Psalter Lane<br>Sheffield<br>S11 8YL<br>**Key management personnel** Emily Pieters, Project Director<br>Anna Morrissey, Commercial and Finance Manager<br>**Independent auditor**<br>Sumer Auditco Limited<br>Chartered Accountants<br>Albert Works<br>Sidney Street<br>Sheffield<br>S1 4RG<br>**Bankers**<br>Lloyds Bank<br>1 High Street<br>Sheffield<br>S1 2GA||



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## **HARMONY WORKS TRUST** 

## CHAIR'S REPORT 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **Introduction** 

I am delighted to introduce Harmony Works Trust’s Annual Report and to highlight the progress we have made and our achievements during the last 12 months. During the year we have developed our plans for the refurbishment of Canada House to create Harmony Works, opened up of the building for some initial events and educational visits which confirm the exciting opportunities that lie ahead as we create a new home for music education and performance opportunities for young people. 

## **Strategic Context** 

Our strategic aim as a Charity is twofold; firstly, to revitalise Canada House, Sheffield that will become Harmony Works; secondly to create and develop an organisation that will promote performing arts (and in particular but not limited to music), advance music education and operate Harmony Works to provide a venue that will promote all genres of music in collaboration between professional musicians and groups and young people. 

## **Achievements in the year to 31 July 2025** 

Our team of design consultants have been working on the detailed drawings and specifications to restore and extend Canada House. This process is informed by our sustainable environmental approach, working creatively with the building's heritage, providing spaces that are accessible to all, and to accommodate the needs of our partners and young people. 

We have hosted student groups from the University of Sheffield Schools of Architecture and Engineering as part of their degree studies and Sheffield Hallam University’s first year Photography Students to document Canada House in its ‘found state’ before renovation works commence. 

In October 2024, Harmony Works Trust was awarded the Sheffield Chamber of Commerce President’s Special Recognition Award for the charity’s drive and determination to invest in one of Sheffield’s Victorian buildings and provide a unique environment for young people to build upon the current reputation that Sheffield holds for music making and education. 

In July 2025 we welcomed hundreds of people into Canada House for the first time in decades, beginning in spectacular style with Harmony Works Live – showcasing performances from some of the young people our partners work with. The evening was a complete success bringing the building back to life and a demonstration of what it will be in a couple of years’ time. 

We are grateful to all the funding organisations that have collaborated and supported the charity so far. During 2024-25 we were delighted to receive substantial funding from The National Lottery Heritage Fund, Arts Council England and the Garfield Weston Foundation. At the year-end we had funding offers and options for more than 90% of the amount we require, with applications to other funders waiting to be determined. We monitor awards each month as part of the Trustee meeting and include their current status as part of our reports to our main supporters. 

## **Challenges** 

There are two primary challenges; raising the necessary remaining funding in a timely manner and looking after Canada House to ensure that the building does not deteriorate further and that original details are retained. 

2025 was the 150th anniversary of Canada House, arguably one of the finest Victorian buildings in Sheffield. Since the purchase of the building in April 2024, it has been largely unoccupied. We have been undertaking maintenance and repair works to maintain the integrity of the building envelope and roof to ensure that there is minimal further deterioration to maintain as many of the original features as possible when refurbishment works are undertaken in 2026-27. The building is monitored on a weekly basis by our facilities manager who undertakes a full set of compliance checks. 

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## **HARMONY WORKS TRUST** 

## CHAIR'S REPORT (CONTINUED) 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **Outlook** 

The pace of revitalising Canada House and raising the capital investment required will be maintained going forward, with our short-term focus remaining on completing the capital fundraising, completing the detailed design with input from all our stakeholders and potential users, and appointing a contractor. 

We are looking forward to launching our Youth Forum, inviting young people aged 14-21 to join us to provide their feedback and ideas to continue to shape Harmony Works. 

A key objective is the retention and celebration of this important heritage asset. This will include participating in Heritage Open Days and the Castlegate Festival. The University of Sheffield has created and will host an Urban Room in Canada House, looking at the building’s past, present and future, which will be recorded and embedded into the design and future operations of the building. 

Finally, I would like to thank everyone who has contributed and without whom none of this would have been possible; our trustees who have supported the evolution of the charity, our passionate and committed in house project team who have put in the extra hours to achieve each programme milestone, our volunteers and many partners. I would specifically highlight the commitment of Sheffield City Council and South Yorkshire Mayoral Combined Authority in terms of funding, introductions and guidance. 


Signer ID: NL1UNCUC0X... David Hobson Chair 

27/01/2026 GMT 

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## **HARMONY WORKS TRUST** 

## TRUSTEES' REPORT 

_FOR THE YEAR ENDED 31 JULY 2025_ 

The Trustees present our Annual Report together with the audited financial statements of the Harmony Works Trust for the period 1 August 2024 to 31 July 2025. We confirm that the Annual Report and Financial Statements of the Charitable Incorporated Organisation comply with the current statutory requirements, the requirements of our governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). 

Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted. 

## _**Objectives and activities**_ 

## **a. Policies and objectives** 

The objects of the Trust are, for the public benefit: 

- to advance education in and promote public appreciation of the performing arts, in particular but not limited to music; and 

- to acquire, preserve, restore and maintain the building of historic and architectural interest situated in Sheffield, currently known as Canada House. 

In furtherance of the above purposes and not otherwise, we will, particularly, but not exclusively, provide and operate the venue at Canada House, Sheffield S1 2AT and such other facilities for teaching, practice, rehearsal and performance, and the provision of music support services; and will support other charities, governmental and not-for-profit organisations, including Sheffield Music Academy, Sheffield Music Hub, and other local music education hubs, in their provision and delivery of such services. 

In setting objectives and planning for activities, we have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'. 

## **b. Strategies for achieving objectives** 

In the second year of existence our strategy has been: 

- to appoint trustees with skills relevant to those we require to navigate the project development phase 

- to ensure policies and procedures for the Trust comply were formally adopted 

- to maintain Canada House in preparation of the delivery phase 

- to fundraise for the project development and delivery phases. 

Our work has focused on securing the necessary funds for the capital project, stakeholder engagement, and building a project team. Our strategies for the post-capital works operational stage were further strengthened through revisions to the Operational Business Plan. 

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## **HARMONY WORKS TRUST** 

## TRUSTEES' REPORT (CONTINUED) 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **Objectives and activities (continued)** 

## **c. Activities undertaken to achieve objectives** 

## **Canada House** 

While we await the start of refurbishment in 2026, the building is inspected and maintained on a weekly basis to retain the heritage asset in good condition. 

During 2024-25 repairs to the roof have been undertaken to prevent further water ingress and damage. 

## **Project Development** 

During 2024-25 our Project Team has further developed the project, guided by us and supported by external consultants: 

- The major workstream during 2024-25 was to secure the core public funding to deliver the capital project. This involved the preparation and revision of significant supporting material which has been assessed in detail by the National Lottery Heritage Fund and Arts Council England. This has led to successful outcomes of both grant applications. The list of reports which accompany these applications is extensive and the result of which guide the project through to the capital delivery (construction) stage. These reports include Economic and Social value appraisal, Programme, Budget and Cash Flow, Business Plan, Access Audit, Design Report for RIBA 3. 

- As the ongoing sustainable operation of Harmony Works is built on a model of partners paying to occupy space in Canada House, a collaboration/co-occupation strategic plan was developed as part of the wider Business Plan and has been developed during this period, demonstrating the financial viability of the operational phase. Further refinement of the operational business plan has been supported by the creation of the Conservation Management Plan, which provides the restoration and repair philosophy for Harmony Works at Canada House and the Management and Maintenance plan, which models and timelines routine, repair, servicing and maintenance, adding greater certainty to the modelling of operational phase costs. 

- Partnership working and project planning in this period has unearthed rich seams of information and material relating to the heritage of Canada House. 

- Procurement of the design team for RIBA 4 to ensure continuity and progression of programme. 

- We continued our audience development work and activity planning, including Youth Voice work and volunteer recruitment, to ensure that the project is shaped by young people, the future beneficiaries of Harmony Works. 

- With our partners, we continued our development work to engage with local politicians, funders and Sheffield community stakeholders. Highlights include the receipt of The Chamber President’s Special Recognition Award in October 2024 for the important contribution Harmony Works will have on the lives and futures of young people and their communities across Sheffield. 

## _**Achievements and performance**_ 

## **a. Key performance indicators** 

We aimed to achieve value for money during the period by following the procedures laid out in our Procurement Method Statement. This ensured that our procurement of goods and services and the recruitment of staff were fair, properly authorised and recorded, competitively tendered and offered satisfactory quality and value for money. 

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## **HARMONY WORKS TRUST** 

## TRUSTEES' REPORT (CONTINUED) 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## _**Financial review**_ 

## **a. Financial review of the period** 

In the period to 31 July 2025, we received income of £1,719,385 (2024: £2,257,105), comprising grants and donations totalling £1,711,932 (2024: £2,253,051), £5,500 (2024: £nil) of rental income and £1,953 (2024: £4,054) of bank interest. 

We spent £328,850 (2024: £413,189) on charitable activities related to the project (building consultants, design and survey fees, and legal) including £70,870 (2024: £35,285) on insurance and overheads for maintaining Canada House. As at 31 July 2025, funds totalled £3,078,451 (2024: £1,687,916) of which (£78,413) (2024: (£98,546)) are unrestricted funds and £3,156,864 (2024: £1,786,462) are restricted funds. 

## **b. Fundraising activities and income generation** 

In January 2025, the Trust was delighted to receive confirmation of two major awards which it had applied for in the autumn of 2024, i.e. £4.67 million from the National Lottery Heritage Fund and £3.5 million from Arts Council England. Together with our previous fundraising successes, we have now identified the majority of the funds we require to complete the capital phase of the project. 

We continued to engage consultant fundraising support throughout the year to support the ongoing fundraising activity by the team and trustees. As well as the two major grants mentioned above, in the year to 31 July 2025 we also received confirmation of £1 million from the Garfield Weston Foundation and £65,000 from trusts and foundations, all of which we expect to spend by summer 2027. 

As of 31 July 2025, we had several other applications in progress, including an award from the J G Graves Charitable Trust which was confirmed after the year end. We are registered with the fundraising regulator and have received no complaints about our fundraising activities. 

## **c. Going concern** 

After making appropriate enquiries, we have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. The Trust has secured the majority of funding we require to cover the restoration of Canada House from various organisations.  For this reason, we continue to adopt the going concern basis in preparing the financial statements. The immediate risk to the going concern status of the Trust was short term cashflow, however this is carefully managed; and sufficient funding has been received upfront to meet short term cashflow demands. This is currently held on deposit. 

## **d. Reserves policy** 

During this initial capital phase of the project, most of our funds are restricted for acquisition and refurbishment purposes. We recognise that before the Project enters its operational phase, we will have to determine our Reserves Policy and identify a minimum level of operating capital to sustain our operations in the face of unexpected emergencies and economic downturns. The charity has negative free reserves of £78,812 as at 31 July 2025. The negative free reserves position is caused by a loan from Sheffield City Council that was inherited from Sheffield Music Academy and was in place to initiate the Harmony Works project. Currently, the majority of income is restricted for the purpose of restoring Canada House. As the project progresses the Trust has multiple opportunities to develop new unrestricted income streams and build free reserves. 

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## **HARMONY WORKS TRUST** 

## TRUSTEES' REPORT (CONTINUED) 

_FOR THE YEAR ENDED 31 JULY 2025_ 

Most charities aim to keep between one to six months of cash in free reserves to cover all operating expenses and, pending the Board’s final decision on an appropriate level for Harmony Works, we have budgeted for £100,000 in the first instance, just over 15% (two months) of cash in hand, but we would hope to increase that to near 30% (about one term) over time, a level typical in the sector. 

## _**Structure, governance and management**_ 

## **a. Constitution** 

Harmony Works Trust is a registered charity, number 1204512, and is constituted under a Trust deed. 

The Harmony Works Trust was established as a Charitable Incorporated Organisation on 29 August 2023. 

## **b. Methods of appointment or election of trustees** 

Our Constitution requires that there must be at least three charity trustees. If the number falls below this minimum, the remaining trustee or trustees may act only to call a meeting of the charity trustees or appoint a new charity trustee. There is no maximum number of charity trustees that may be appointed. 

Apart from the first charity trustees, every trustee must be appointed for a term of not more than four 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. Each of Sheffield Music Academy and Sheffield Music Hub (each an "appointing body") may appoint one charity trustee. 

The eight trustees for the charity for the period ended 31 July 2025 are listed on page 1. Peter Kennan resigned as a trustee on 16 August 2024 and Ceris Morris joined shortly after the financial year end, on 16 September 2025. 

## **c. Organisational structure and decision-making policies** 

We met as Trustee Board six times during the period covered by this report. At our meetings we agree the broad strategy and areas of activity for the Charity, including capital project development, long term business planning, insurance and financial strategies, risk management and performance. 

We have also established three sub-committees (Capital Project, Finance & Resources, and Fundraising) that meet every two months and have delegated authority to pursue matters within their remit on behalf of the main Board. 

The day-to-day delivery of the Harmony Works Project is delegated to the Project Director and her team. 

We may make decisions either at a meeting or by resolution in writing or electronic form agreed by a majority of us all. 

## **d. Policies adopted for the induction and training of trustees** 

Trustees are appointed based on their skills and other qualities that they may bring to the charity. During the period all trustees and staff undertook training on the Building Safety Act. All trustees receive a copy of the Constitution and receive trustee training. 

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## **HARMONY WORKS TRUST** 

## TRUSTEES' REPORT (CONTINUED) 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **Structure, governance and management (continued)** 

## **e. Pay policy for key management personnel** 

During 2024-25 we had one member of staff start on payroll and all other staff were employed on a freelance basis, our policies and procedures have been developed including policies to ensure salaries remain competitive and appropriate. 

## **f. Related party relationships** 

All our trustees volunteer their services and are not paid for their work. Out of pocket expenses totalling £728 were paid to 3 trustees (2024: £634 to 2 trustees), in accordance with our Trustee Expenses Policy. 

Ian Falconer and Karen Burland-Clark, as trustees nominated by Sheffield Music Academy and the Sheffield Music Hub respectively, registered conflicts of interest and took no part in decisions that impacted on those partners. No other trustees registered a conflict of interest during the period. 

## **g. Financial risk management** 

## **Principal risks and uncertainties** 

We keep the major risks to which the charity is exposed under regular review, particularly those related to our operations and finances. We have established systems and procedures to manage them, and we consider the top risks affecting the project, and their mitigation, at each Board meeting. In this period, the principal risks and uncertainties were as follows: 

- that the Trust fails to raise necessary funds for refurbishment of Canada House leading to the operational phase of the Harmony Works project not completing and the deterioration of its listed features for which we are responsible. To mitigate this risk, we engaged external professional fundraising support and an Appeal Chair and are looking to appoint additional trustees with fundraising expertise. 

- that the Trust acquired Canada House before project delivery funding was fully secured, leaving the Trust with the liabilities of ownership and insufficient funds to complete the capital development phase of the project. To mitigate this risk, our Business Plan is based upon a sustainable business model, enabling us to draw down some funding early to support the initial ownership costs and capital work. 

- that the Trust lacked key strategic skills at Board level leading to inadequate or inefficient oversight of the project. To mitigate this risk, we continue to strengthen the skills and diversity of the Board and regular skills audits will assess current competency, targeted recruitment and succession planning. 

- that insufficient cash reserves create heightened vulnerability in trading, and an inability to address our charitable obligations. To mitigate this risk, our capital and operational plans look forward three to five years, with monthly cashflow management, and include contingency funds, reserves and regular stress testing. 

## **h. Trustees' indemnities** 

We have Trustee’s and Directors’ indemnity insurance cover in place to the value of £2 million. 

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## **HARMONY WORKS TRUST** 

## TRUSTEES' REPORT (CONTINUED) 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **Plans for future periods** 

In 2025-26 we plan: 

- To complete our fundraising for the delivery phase of the Harmony Works capital project. 

- To recruit a full project team of staff and consultants, as per our Capital Project Delivery Plan. 

- To develop the capital project design and achieve RIBA stage 4. 

- To achieve permission to start from ACE, SYMCA and NLHF by closing the remaining funding gap. 

- To procure the principal contractor for the main capital works. 

- To commence the capital works. 

- To begin to deliver the Activity Plan as per our Round 2 National Heritage Lottery Fund application. 

- To increase awareness of and support for the project. 

- To continue our Youth Voice Work and develop a Youth Panel which will contribute to both the design of the project’s capital and operational outputs and to the governance of the project. 

- To maintain our strong relationships with our public partners Sheffield City Council and the South Yorkshire Mayoral Combined Authority, our Harmony Works tenants, the wider family of Harmony Works supporters and collaborators and our diverse communities in Sheffield and beyond. 

- To ensure that data and stories which demonstrate the impact of our proposed project activities continue to be collected, analysed and promoted, as per our evaluation strategy and plan. 

## **Events after the reporitng period** 

In November 2025, the Trust was delighted to receive confirmation of a major grant from the J G Graves Charitable Trust of £300,000. This significant award from a local trust builds further confidence towards closing the remaining funding gap by March 2026. 

## **Statement of trustees' responsibilities** 

The trustees 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). 

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

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles of the Charities SORP (FRS 102); 

- make judgements and accounting estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; 

- 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 adequate accounting records that are sufficient to show and explain the charity's transactions and 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 and the provisions of the Trust deed. 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. 

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## **HARMONY WORKS TRUST** 

## TRUSTEES' REPORT (CONTINUED) 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **Disclosure of information to auditor** 

Each of the persons who are trustees at the time when this Trustees' report is approved has confirmed that: 

- so far as that trustee is aware, there is no relevant audit information of which the charity's auditor is unaware, and 

- that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information. 

## **Auditor** 

Sumer Auditco Limited were appointed as auditor to the charitable company following BHP LLP becoming part of the Sumer Group on 31 December 2025, which required a change in audit firm to comply with applicable regulatory requirements. 

In accordance with section 487(2) of the Companies Act 2006, Sumer Auditco Limited are deemed to be reappointed annually. 

Approved by order of the members of the board of trustees and signed on their behalf by: 


Signer ID: NL1UNCUC0X... **David Hobson** 

Date: 27/01/2026 GMT 

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## **HARMONY WORKS TRUST** 

## INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF  HARMONY WORKS TRUST 

We have audited the financial statements of Harmony Works Trust (the ‘charity’) for the year ended 31 July 2025, which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the charity’s affairs as at 31 July 2025, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The other information comprises the information included in the trustees' report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

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## **HARMONY WORKS TRUST** 

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF  HARMONY WORKS TRUST (CONTINUED) 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: 

- the information given in the trustees' report is inconsistent in any material respect with the financial statements; or 

- sufficient accounting records have not been kept; or 

- the charity's financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. 

## **Auditor responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

- the senior statutory auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 

- we identified the laws and regulations applicable to the entity through discussions with Trustees and other management, and from our knowledge and experience of the charity sector; 

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the entity, including health and safety and GDPR; 

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and 

- we ensured identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

We assessed the susceptibility of the entity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 

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## **HARMONY WORKS TRUST** 

## INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF  HARMONY WORKS TRUST (CONTINUED) 

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and 

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. 

To address the risk of fraud through management bias and override of controls, we: 

- performed analytical procedures to identify any unusual or unexpected relationships; 

- tested journal entries to identify unusual transactions; 

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and 

- investigated the rationale behind significant or unusual transactions. 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 

- agreeing financial statement disclosures to underlying supporting documentation; 

- reading the minutes of meetings of those charged with governance; and 

- enquiring of management as to actual and potential litigation and claims. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 

A further description of our responsibilities is available on the FRC's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 

## **Use of our report** 

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. 


Signer ID: WKOLTHN6RI... **Sumer Auditco Limited** Chartered Accountants Statutory Auditor Albert Works Sidney Street Sheffield S1 4RG 

Date: 27/01/2026 GMT 

Sumer Auditco Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. 

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## **HARMONY WORKS TRUST** 

## STATEMENT OF FINANCIAL ACTIVITIES 

_FOR THE YEAR ENDED 31 JULY 2025_ 

|**Note**<br>**Income from:**<br>Donations and legacies<br>4<br>Other trading activities<br>5<br>Investments<br>6<br>**Total income**<br>**Expenditure on:**<br>Charitable activities<br>7<br>Impairment<br>8<br>**Total expenditure**<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>Net movement in funds<br>**Total funds carried forward**|**Restricted**<br>**funds**<br>**2025**<br>**£**<br>**1,695,692**<br>**-**<br>**-**<br>**1,695,692**<br>**325,290**<br>**-**<br>**325,290**<br>**1,370,402**<br>**1,786,462**<br>**1,370,402**<br>**3,156,864**|**Unrestricted**<br>**funds**<br>**2025**<br>**£**<br>**16,240**<br>**5,500**<br>**1,953**<br>**23,693**<br>**3,560**<br>**-**<br>**3,560**<br>**20,133**<br>**(98,546)**<br>**20,133**<br>**(78,413)**|**Total**<br>**funds**<br>**2025**<br>**£**<br>**1,711,932**<br>**5,500**<br>**1,953**<br>**1,719,385**<br>**328,850**<br>**-**<br>**328,850**<br>**1,390,535**<br>**1,687,916**<br>**1,390,535**<br>**3,078,451**|Total<br>funds<br>2024<br>£<br>2,253,051<br>-<br>4,054|
|---|---|---|---|---|
|||||2,257,105|
|||||413,189<br>156,000|
|||||569,189|
|||||1,687,916|
|||||-<br>1,687,916|
|||||1,687,916|



The Statement of financial activities includes all gains and losses recognised in the year. 

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## **HARMONY WORKS TRUST** 

## BALANCE SHEET 

_AS AT 31 JULY 2025_ 

|**Note**<br>**Fixed assets**<br>Tangible assets<br>13<br>**Current assets**<br>Debtors<br>14<br>Investments<br>15<br>Cash at bank and in hand<br>**Current liabilities**<br>Creditors: amounts falling due within one year<br>16<br>**Net current assets**<br>**Total assets less current liabilities**<br>Creditors: amounts falling due after more than<br>one year<br>17<br>**Total net assets**<br>**Charity funds**<br>Restricted funds<br>18<br>Unrestricted funds<br>18<br>**Total funds**|**55,711**<br>**1,250,858**<br>**425,204**<br>**1,731,773**<br>**(110,956)**|**2025**<br>**£**<br>**1,505,399**<br>**1,505,399**<br>**1,620,817**<br>**3,126,216**<br>**(47,765)**<br>**3,078,451**<br>**3,156,864**<br>**(78,413)**<br>**3,078,451**|50,532<br>-<br>338,406<br>388,938<br>(100,600)|2024<br>£<br>1,505,000<br>1,505,000<br>288,338<br>1,793,338<br>(105,422)<br>1,687,916<br>1,786,462<br>(98,546)<br>1,687,916|
|---|---|---|---|---|



The financial statements were approved and authorised for issue by the trustees and signed on their behalf by: 


Signer ID: NL1UNCUC0X... 

## **David Hobson** 

(Chair of Trustees) Date: 27/01/2026 GMT 

The notes on pages 17 to 32 form part of these financial statements. 

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## **HARMONY WORKS TRUST** 

## STATEMENT OF CASH FLOWS 

_FOR THE YEAR ENDED 31 JULY 2025_ 

|**Note**<br>**Cash flows from operating activities**<br>Net cash used in operating activities<br>21<br>**Cash flows from investing activities**<br>Interests from investments<br>Purchase of tangible fixed assets<br>**Net cash provided by/(used in) investing activities**<br>**Cash flows from financing activities**<br>Cash transferred from Sheffield Music Academy activities<br>**Net cash provided by financing activities**<br>**Change in cash and cash equivalents in the year**<br>Cash and cash equivalents at the beginning of the year<br>**Cash and cash equivalents at the end of the year**<br>22,23|**2025**<br>**£**<br>**1,336,301**<br>**1,953**<br>**(598)**<br>**1,355**<br>**-**<br>**-**<br>**1,337,656**<br>**338,406**<br>**1,676,062**|2024<br>£<br>1,904,118<br>4,054<br>(1,661,000)<br>**(1,656,946)**<br>91,234<br>**91,234**<br>**338,406**<br>-<br>338,406|
|---|---|---|



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## **HARMONY WORKS TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **1. General information** 

Harmony Works Trust is a Charitable Incorporated Organisation (CIO) registered in England and Wales. The registered office is Office 9, Shirley House, 31 Psalter Lane, Sheffield, S11 8YL. The charity was registered with the Charity Commission on 29 August 2023. 

## **2. Accounting policies** 

## _**2.1 Basis of preparation of financial statements**_ 

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. 

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 Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. 

Harmony Works Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The accounts are presented in sterling, which is the functional currency of the charity and is rounded to the nearest £. 

## _**2.2 Reporting period**_ 

The prior period of these financial statements have been prepared for an 11 month period from 1 September 2023 to 31 July 2024 and therefore the comparative figures are not entirely comparable. 

## _**2.3 Going concern**_ 

The Trustees have at the time of approving the financial statements a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus they  adopt the going concern basis of accounting in preparing the financial statements. 

## _**2.4 Income**_ 

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. 

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. 

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## **HARMONY WORKS TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **2. Accounting policies (continued)** 

## _**2.4 Income (continued)**_ 

Donated professional services and facilities are recognised on the basis of the value of the gift to the charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. 

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. 

## _**2.5 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 allocated on the portion of the asset’s use. 

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs. 

## _**2.6 Interest receivable**_ 

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. 

## _**2.7 Tangible fixed assets and depreciation**_ 

Tangible fixed assets are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. 

Tangible fixed assets are initially recognised at cost. The freehold land and property purchased in the period is in the process of being restored and refurbished and is akin to an asset in the course of construction, as such depreciated is not being charged. 

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date.  If such indication exists, the recoverable amount of the asset, is estimated and compared to the carrying amount.  Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in statement of financial activities unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. 

The freehold property known as Canada House is an inalienable asset. 

- Computer equipment 33% straight line 

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## **HARMONY WORKS TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **2. Accounting policies (continued)** 

## _**2.8 Current asset investments**_ 

Current asset investments comprise of deposits with maturities greater than three months but less than one year, which are not intended for long-term use. These are measured at cost less impairment of fair value where applicable, in accordance with FRS102 Section 11. 

## _**2.9 Debtors**_ 

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

## _**2.10 Cash at bank and in hand**_ 

Cash at bank and 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. 

## _**2.11 Liabilities and provisions**_ 

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. 

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. 

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost. 

## _**2.12 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. 

## _**2.13 Pensions**_ 

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year. 

## _**2.14 Fund accounting**_ 

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. 

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## **HARMONY WORKS TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **2. Accounting policies (continued)** 

## _**2.14 Fund accounting (continued)**_ 

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. 

Investment income, gains and losses are allocated to the appropriate fund. 

## _**3.**_ **Critical accounting estimates and areas of judgement** 

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 

Critical accounting estimates and assumptions: 

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. 

## **4. Income from donations and legacies** 

|**_Donations_**<br>Transfers from Sheffield Music Academy<br>Donation in kind<br>Other donations<br>**_Total donations_**<br>Grants<br>Total 2024|**Restricted**<br>**funds**<br>**2025**<br>**£**<br>-<br>13,675<br>-<br>13,675<br>1,682,017<br>1,695,692<br>2,303,166|**Unrestricted**<br>**funds**<br>**2025**<br>**£**<br>-<br>-<br>16,240<br>16,240<br>-<br>16,240<br>(50,115)|**Total**<br>**funds**<br>**2025**<br>**£**<br>**-**<br>**13,675**<br>**16,240**<br>**29,915**<br>**1,682,017**<br>**1,711,932**<br>2,253,051|Total<br>funds<br>2024<br>£<br>29,427<br>115,779<br>-|
|---|---|---|---|---|
|||||145,206|
|||||2,107,845|
|||||2,253,051|
||||||



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## **HARMONY WORKS TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **5. Other trading activities** 

||**Unrestricted**|**Total**|Total|
|---|---|---|---|
||**funds**|**funds**|funds|
||**2025**|**2025**|2024|
||**£**|**£**|£|
|Rental income|5,500|**5,500**|-|



## **6. Investment income** 

|Bank interest received<br>Interest received from HMRC<br>Other interest<br>Total 2024|**Unrestricted**<br>**funds**<br>**2025**<br>**£**<br>1,402<br>-<br>551<br>1,953<br>4,054|**Total**<br>**funds**<br>**2025**<br>**£**<br>**1,402**<br>**-**<br>**551**<br>**1,953**<br>4,054|Total<br>funds<br>2024<br>£<br>2,220<br>1,834<br>-|
|---|---|---|---|
||||4,054|
|||||



## **7. Analysis of expenditure on charitable activities** 

## _**Summary by fund type**_ 

|The Harmony Works Project<br>Total 2024|**Restricted**<br>**funds**<br>**2025**<br>**£**<br>325,290<br>410,704|**Unrestricted**<br>**funds**<br>**2025**<br>**£**<br>3,560<br>2,485|**Total**<br>**2025**<br>**£**<br>**328,850**<br>413,189|Total<br>2024<br>£<br>413,189|
|---|---|---|---|---|
||||||



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## **HARMONY WORKS TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **8. Impairment** 

|Impairment of Canada House<br>Total 2024|**Restricted**<br>**funds**<br>**2025**<br>**£**<br>-<br>156,000|**Total**<br>**funds**<br>**2025**<br>**£**<br>**-**<br>156,000|Total<br>funds<br>2024<br>£<br>156,000|
|---|---|---|---|
|||||



## **9. Analysis of expenditure by activities** 

|The Harmony Works Project<br>Total 2024|**Activities**<br>**undertaken**<br>**directly**<br>**2025**<br>**£**<br>314,350<br>399,189|**Support costs**<br>**(note 10)**<br>**2025**<br>**£**<br>14,500<br>14,000|**Total**<br>**funds**<br>**2025**<br>**£**<br>**328,850**<br>413,189|Total<br>funds<br>2024<br>£<br>413,189|
|---|---|---|---|---|
||||||



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## **HARMONY WORKS TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **9. Analysis of expenditure by activities (continued)** 

## **Analysis of direct costs** 

|Staff costs<br>Facilities management<br>Repair costs<br>Project fees<br>Building consultants<br>Building design<br>Building surveys<br>Legal fees<br>Communication and engagement<br>Interest and charges<br>Depreciation<br>Total 2024|**The Harmony**<br>**Works Project**<br>**2025**<br>**£**<br>19,729<br>70,870<br>19,879<br>100,527<br>1,942<br>63,768<br>8,953<br>13,675<br>11,989<br>2,819<br>199<br>314,350<br>399,189|**Total**<br>**funds**<br>**2025**<br>**£**<br>**19,729**<br>**70,870**<br>**19,879**<br>**100,527**<br>**1,942**<br>**63,768**<br>**8,953**<br>**13,675**<br>**11,989**<br>**2,819**<br>**199**<br>**314,350**<br>399,189|Total<br>funds<br>2024<br>£<br>-<br>35,285<br>-<br>82,223<br>44,143<br>23,750<br>81,229<br>115,779<br>14,295<br>2,485<br>-|
|---|---|---|---|
||||399,189|
|||||



## **10. Auditor's remuneration** 

The Auditor's remuneration amounts to an auditor fee of £13,000 (2024: £13,250) and accounting services of £1,500 (2024: £750). 

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## **HARMONY WORKS TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **11. Staff costs** 

|Wages and salaries<br>Social security costs<br>Contribution to defined contribution pension schemes|**2025**<br>**£**<br>**18,923**<br>**347**<br>**459**<br>**19,729**|2024<br>£<br>-<br>-<br>-|
|---|---|---|
||||
|||-|



The average number of persons employed by the charity during the year was as follows: 

||**2025**|2024|
|---|---|---|
||**No.**|No.|
|Employees|**1**|-|



No employee received remuneration amounting to more than £60,000 in either year. 

The gross remuneration of the key management personnel during the period was £53,329 (2024: £32,100). The key management personnel are deemed to be those listed on page one of the accounts. There is one employee and one freelancer. In the prior year, all key management personnel were freelance. 

## **12. Trustees' remuneration and expenses** 

During the year, no trustees received any remuneration or other benefits (2024 - £NIL). 

During the year, expenses totalling £728 were reimbursed or paid directly to 3 trustees (2024: £634 to 2 trustees) in relation to travel costs. 

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## **HARMONY WORKS TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **13. Tangible fixed assets** 

|**_Cost_**<br>At 1 August 2024<br>Additions<br>At 31 July 2025<br>**_Depreciation_**<br>Charge for the year<br>At 31 July 2025<br>**_Net book value_**<br>At 31 July 2025<br>At 31 July 2024|**Freehold land**<br>**and property**<br>**£**<br>**1,505,000**<br>**-**<br>**1,505,000**<br>**-**<br>**-**<br>**1,505,000**<br>1,505,000|**Computer**<br>**equipment**<br>**£**<br>**-**<br>**598**<br>**598**<br>**199**<br>**199**<br>**399**<br>-|**Total**<br>**£**<br>**1,505,000**<br>**598**|
|---|---|---|---|
||||**1,505,598**|
||||**199**|
||||**199**|
||||**1,505,399**|
||||1,505,000|



Freehold land and property comprises Canada House which is in the process of restoration.  Further details are provided in accounting policies. 

In the prior year, an impairment of £156,000 was recognised on the basis of a professional valuation from SMC Brownhill Vickers dated April 2024 due to market hardening conditions experienced since the agreed purchase price and acquisition. 

Canada House is under restoration, as development progresses futher capital additions and impairments are expected as conservation deficit is realised. 

The professional valuation also indicates that the value of Canada House following completion of the restoration project will be in excess of the original purchase price. 

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## **HARMONY WORKS TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **14. Debtors** 

|**_Due within one year_**<br>Other debtors<br>Prepayments and accrued income<br>**Current asset investments**<br>Notice deposit accounts<br>**Creditors: Amounts falling due within one year**<br>Other loans<br>Trade creditors<br>Other taxation and social security<br>Other creditors<br>Accruals<br>**Creditors: Amounts falling due after more than one year**<br>Other loans|**2025**<br>**£**<br>**5,926**<br>**49,785**<br>**55,711**<br>**2025**<br>**£**<br>**1,250,858**<br>**2025**<br>**£**<br>**60,200**<br>**34,771**<br>**869**<br>**155**<br>**14,961**<br>**110,956**<br>**2025**<br>**£**<br>**47,765**|2024<br>£<br>5,301<br>45,231|
|---|---|---|
||||
|||50,532|
|||2024<br>£<br>-|
|||2024<br>£<br>-<br>85,503<br>-<br>-<br>15,097|
||||
|||100,600|
|||2024<br>£<br>105,422|



## **15. Current asset investments** 

## **16. Creditors: Amounts falling due within one year** 

## **17. Creditors: Amounts falling due after more than one year** 

The loan is an unsecured loan from Sheffield City Council to support the expenditure of the project. The loan is repayable in two equal instalments in June 2026 and June 2027. Interest is accrued on a daily basis at 2.55% per annum. 

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## **HARMONY WORKS TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **18. Statement of funds** 

**Statement of funds - current year** 

|**_Unrestricted funds_**<br>General funds<br>**_Restricted funds_**<br>National Lottery Heritage Funding<br>SYMCA Gainshare<br>Sheffield City Council<br>Donation in kind<br>Restricted fixed asset fund<br>Arts Council England<br>Garfield Weston Foundation<br>The Wolfson Foundation<br>Foyle Foundation<br>Swire Family Trust<br>Other funds<br>**_Total of funds_**|**Balance at 1**<br>**August 2024**<br>**£**<br>**(98,546)**<br>**-**<br>**244,987**<br>**36,475**<br>**-**<br>**1,505,000**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**1,786,462**<br>**1,687,916**|**Income**<br>**£**<br>**23,693**<br>**18,655**<br>**500,000**<br>**-**<br>**13,675**<br>**-**<br>**37,319**<br>**1,000,000**<br>**42,043**<br>**30,000**<br>**35,000**<br>**19,000**<br>**1,695,692**<br>**1,719,385**|**Expenditure**<br>**£**<br>**(3,560)**<br>**(18,655)**<br>**(161,414)**<br>**(36,475)**<br>**(13,675)**<br>**-**<br>**(37,319)**<br>**-**<br>**(42,043)**<br>**(13,500)**<br>**-**<br>**(2,209)**<br>**(325,290)**<br>**(328,850)**|**Balance at 31**<br>**July 2025**<br>**£**<br>**(78,413)**<br>**-**<br>**583,573**<br>**-**<br>**-**<br>**1,505,000**<br>**-**<br>**1,000,000**<br>**-**<br>**16,500**<br>**35,000**<br>**16,791**<br>**3,156,864**<br>**3,078,451**|
|---|---|---|---|---|



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## **HARMONY WORKS TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **18. Statement of funds (continued)** 

## **Restricted funds** 

National Lottery Heritage Fund - Development Grant to fund survey work, project team, audience development and community engagement, fundraising, viability assessment. 

SYMCA Gainshare (allocation from Sheffield City Council) – design fees, project team, insurances, construction, consultant costs. 

Sheffield City Council - Feasibility Grant to fund reports for ACE application, including economic and social data outputs, subsidy control opinion, access report, fundraising, business plan, cost plan. 

Donation in Kind - From Altitude PR and CMS LLP for professional services. 

Restricted fixed asset fund - represents the net book value of the tangible fixed assets. 

Arts Council England – Revenue and Capital Grants to support the capital project to create a new home for music education in Canada House. 

Garfield Weston Foundation - grant towards the Harmony Works Trust’s capital project to create a new inclusive home for music education in Sheffield. 

The Wolfson Foundation – Grant towards the capital project of the restoration of Canada House. 

Foyle Foundation – Grant to support phase one of works to enable use of Canada House in Sheffield (eg plaster survey, temporary floor, strip out of kitchen, professional fees). 

Swire Family Trust - Grant towards the capital project of the transformation of Canada House into a home for music education. 

Trusts - Business Plan, Community Engagement, project team. 

Sheffield Music Academy - legal and statutory fees. 

Levelling Up Funding - Granted to Harmony Works from SCC from Sheffield Gateway Levelling Up Fund for the purchase of Canada House. 

## **General Funds** 

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. 

The unrestricted fund has a deficit balance as at 31 July 2025 totalling £78,413. This deficit balance is represented by the loan from SCC detailed in note 13. 

In the prior period, transfers from the restricted funds to the fixed asset fund represents funding received from grant providers expensed in accordance with the conditions and transferred to a separate fund to represent the cost of the property. The £50,000 transferred from unrestricted funds represents the charity's own investment in the purchase of the property. 

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## **HARMONY WORKS TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **18. Statement of funds (continued)** 

## **Statement of funds - prior year** 

|**_Unrestricted funds_**<br>General funds<br>**_Restricted funds_**<br>Levelling Up Funding<br>National Lottery Heritage Funding<br>SYMCA Gainshare<br>Sheffield City Council<br>Trusts<br>Sheffield Music Academy<br>Donation in kind<br>Restricted fixed asset fund<br>**_Total of funds_**|Income<br>£<br>(46,061)<br>1,600,000<br>154,608<br>280,000<br>149,753<br>2,284<br>742<br>115,779<br>-<br>2,303,166<br>2,257,105|Expenditure<br>£<br>(2,485)<br>-<br>(154,608)<br>(35,013)<br>(102,278)<br>(2,284)<br>(742)<br>(115,779)<br>(156,000)<br>(566,704)<br>(569,189)|Transfers<br>in/out<br>£<br>(50,000)<br>(1,600,000)<br>-<br>-<br>(11,000)<br>-<br>-<br>-<br>1,661,000<br>50,000<br>-|Balance at<br>31 July 2024<br>£<br>(98,546)<br>-<br>-<br>244,987<br>36,475<br>-<br>-<br>-<br>1,505,000<br>1,786,462<br>1,687,916|
|---|---|---|---|---|



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## **HARMONY WORKS TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **19. Summary of funds** 

**Summary of funds - current year** 

|General funds<br>Restricted funds<br>**Summary of funds - prior year**<br>General funds<br>Restricted funds|**Balance at 1**<br>**August 2024**<br>**£**<br>**(98,546)**<br>**1,786,462**<br>**1,687,916**<br>Income<br>£<br>(46,061)<br>2,303,166<br>2,257,105|**Income**<br>**£**<br>**23,693**<br>**1,695,692**<br>**1,719,385**<br>Expenditure<br>£<br>(2,485)<br>(566,704)<br>(569,189)|**Expenditure**<br>**£**<br>**(3,560)**<br>**(325,290)**<br>**(328,850)**<br>Transfers<br>in/out<br>£<br>(50,000)<br>50,000<br>-|**Balance at 31**<br>**July 2025**<br>**£**<br>**(78,413)**<br>**3,156,864**<br>**3,078,451**<br>Balance at<br>31 July 2024<br>£<br>(98,546)<br>1,786,462<br>1,687,916|
|---|---|---|---|---|



## **20. Analysis of net assets between funds** 

## **Analysis of net assets between funds - current year** 

|Tangible fixed assets<br>Current assets<br>Creditors due within one year<br>Creditors due in more than one year<br>**_Total_**|**Restricted**<br>**funds**<br>**2025**<br>**£**<br>1,505,000<br>1,702,620<br>(50,756)<br>-<br>3,156,864|**Unrestricted**<br>**funds**<br>**2025**<br>**£**<br>399<br>29,153<br>(60,200)<br>(47,765)<br>(78,413)|**Total**<br>**funds**<br>**2025**<br>**£**<br>**1,505,399**<br>**1,731,773**<br>**(110,956)**<br>**(47,765)**<br>**3,078,451**|
|---|---|---|---|



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## **HARMONY WORKS TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **20. Analysis of net assets between funds (continued)** 

**Analysis of net assets between funds - prior year** 

|Tangible fixed assets<br>Current assets<br>Creditors due within one year<br>Creditors due in more than one year<br>**_Total_**|Restricted<br>funds<br>2024<br>£<br>1,505,000<br>382,062<br>(100,600)<br>-<br>1,786,462|Unrestricted<br>funds<br>2024<br>£<br>-<br>6,876<br>-<br>(105,422)<br>(98,546)|Total<br>funds<br>2024<br>£<br>1,505,000<br>388,938<br>(100,600)<br>(105,422)<br>1,687,916|
|---|---|---|---|



## **21. Reconciliation of net movement in funds to net cash flow from operating activities** 

|Net income for the year (as per Statement of Financial Activities)<br>**_Adjustments for:_**<br>Interest from investments<br>Impairment of fixed assets<br>Depreciation of fixed assets<br>(Increase) in debtors<br>(Decrease)/increase in creditors<br>Transfer from Sheffield Music Academy<br>**_Net cash provided by operating activities_**|**2025**<br>**£**<br>**1,390,535**<br>**(1,953)**<br>**-**<br>**199**<br>**(5,179)**<br>**(47,301)**<br>**-**<br>**1,336,301**|2024<br>£<br>1,687,916<br>(4,054)<br>156,000<br>-<br>(181)<br>93,864<br>(29,427)<br>1,904,118|
|---|---|---|



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## **HARMONY WORKS TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 JULY 2025_ 

## **22. Analysis of cash and cash equivalents** 

|Cash in hand<br>Notice deposit<br>**_Total cash and cash equivalents_**|**2025**<br>**£**<br>**425,204**<br>**1,250,858**<br>**1,676,062**|2024<br>£<br>338,406<br>-|
|---|---|---|
||||
|||338,406|



## **23. Analysis of changes in net debt** 

|Cash at bank and in hand<br>Debt due within 1 year<br>Debt due after 1 year<br>Liquid investments|**At 1 August**<br>**2024**<br>**£**<br>**338,406**<br>**-**<br>**(105,422)**<br>**-**<br>**232,984**|**Cash flows**<br>**£**<br>**86,798**<br>**(60,200)**<br>**57,657**<br>**1,250,858**<br>**1,335,113**|**At 31 July**<br>**2025**<br>**£**<br>**425,204**<br>**(60,200)**<br>**(47,765)**<br>**1,250,858**|
|---|---|---|---|
||||**1,568,097**|



## **24. Pension commitments** 

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £155 (2024: £nil) were payable to the fund at the balance sheet date and are included in creditors. 

## **25. Related party transactions** 

Ian Falconer and Emily Pieters are trustees of Sheffield Music Academy (SMA). Harmony Works was formerly a project within SMA and included within their financial statements. On the establishment of Harmony Works Trust in the prior period, assets and liabilities held by SMA with a net value of £29,427 were transferred to Harmony Works Trust and this figure was included in donations in the Statement of Financial Activities (note 4). There was no balance outstanding at the year end (2024: £nil). 

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