OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-03-31-accounts

COMMUNITY MUSIC

TRUSTEES REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31[ST] MARCH 2023

CHARITY NUMBER: 293419

COMPANY NUMBER: 01967704

1

Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2023

Contents Page Number
Trustees' annual report (incorporating the director's report) 2 to 12
Independent examiner’s report to the Trustees 13
Statement of financial activities (including income and
expenditure account) 14
Statement of financial position 15
Statement of cash flows 16
Notes to the financial statements 17 to 27

2

Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2023

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 March 2023.

Reference and administrative details

Registered charity name Community Music Limited Charity registration number 293419 Company registration number 01967704 Principal office and registered The Brady Centre office 192•196 Hanbury Street London E1 5HU The trustees Helen Searle Chair John Prince Eshan Haque Adrian Sykes (Joined 28 September 2022) Chief Executive Officer Richard Clegg Company secretary Richard Clegg Independent Examiner: Roger Mutinta Bankers Lloyds Bank 40 Rosslyn Hill London NW3 1NL

3

Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2023

1. Structure, Governance and Management

1.1 Community Music Limited is a charitable company limited by guarantee, incorporated on 2 December 1985 and registered as a charity on 24 April 1986. The Company was established under a Memorandum of Association, which established the objects and the powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

1.2 Methods of appointing new trustees: New trustees are appointed from time to time by the existing trustees. An annual assessment of skills gaps relating to the aims and objectives of the trust is completed by the trustees and new members identified from known professional associates to supply those skills. The term trustee/member/director is interchangeable.

1.3 Name of persons entitled to appoint trustees: trustees must be appointed by vote of a quorate meeting, first as a member of the company then as a trustee of the company and as a director.

1.4 Trustee induction: new trustees receive an induction pack and an explanatory discussion with the Chair comprising governing documents, legal and financial responsibilities, detailed financial information, programme and staffing of the company and specific briefing relating to that trustee’s role on the Board. They meet with the CEO before appointment and are invited as an observer to a meeting before a decision is made for them to join the board of trustees.

1.5 The organisational structure: The Company is overseen by the trustees at a minimum of 4 meetings a year, although in practise this is usually more, and an annual budget with cash flow including salary levels and staffing changes is proposed by the CEO and approved by the Board. Major policy discussions and programme initiatives relating to that policy are discussed and approved by the Board.

1.6 Statement of relationship with other parties: Community Music has no subsidiaries. It maintains a strong relationship with other similar community music projects and funders through its working partnerships.

1.7 Statement of benefits received by trustees: none.

1.8 The Board of Trustees aims to conduct an annual audit of its skills relating to the relevant arts, education and creative industries sectors. It seeks to appoint new trustees where necessary.

2. Objectives, Activities of the charity and Strategic Report:

1. Overall Strategic Aim

2. Youth Music Opportunities

3. Professional Training

4. Live Music Promotion

4

Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2023

  1. Artist and Business Support

  2. To support artists in their career development and creation of businesses.

  3. Key Targets for 2022-23

Ensuring Continued Provision of Youth Music Opportunities in London

Primary objective is to continue providing youth music opportunities throughout London. This will empower young people to access and participate in creative music making, specifically focusing on modern genres.

Structured Pathways to Professional Training

CM is committed to offering structured access to professional training in music. This comprehensive approach encompasses both higher education and vocational training programs.

Promoting New Talent and Fostering Artist Development

To propel the careers of young musicians, in partnerships with professional promoters and festival organisers. This collaboration will enable CM to:

3. Ensuring our work delivers our aims

In shaping and reviewing Community Music’s aims and objectives for the year and planning their activities, the trustees have considered the Charity Commission’s guidance on public benefit. In particular, the trustees consider how planned activities will contribute to the aims and objectives set. Community Music reviews its aims, objectives and activities each year to assess the success of each key activity, and the benefits brought to those groups of people they established to help. This ensures Community Music’s aims, objectives and activities remain focused on its stated purposes.

4. Achievements and performance

Arts Council NPO status 2023-2026

The Arts Council provided positive feedback on Community Music's work and application, reaffirming its status as a long-standing National Portfolio Organisation. While rising inflation and the UK government's Levelling Up program pose challenges for London-based organisations, Community Music is delighted to continue its relationship with the Arts Council. This ensures that the funding will continue to support young creatives both in London and other regions for at least a further 3 years.

The Creative Music Production and Business Degree

Community Music enjoyed a strong year in student recruitment, welcoming 71 registered students across both programme years. Additionally, over 10 students from the previous second year successfully progressed to their third year at the University of Westminster.

The organisation demonstrated its core values with increased access time, online live sessions, supplemented by a range of additional support materials:

5

Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2023

Music Leader Training Programme Online

The Music Leader Programme Online achieved a successful year in 2022-23, attracting 39 registered students across two cohorts. This engaging online platform offers a comprehensive learning experience, featuring a diverse range of multimedia elements that enhance the curriculum and create a dynamic learning environment.

Video Lectures: Clear and informative video instruction. Audio Resources: Supportive audio materials for enhanced learning. Text and Images: Detailed text and visuals for deeper understanding. Downloadable Guides: In-depth PDF guides for ongoing reference. Interactive Features: Interactive quizzes and assignment functionalities

With over 40 positive reviews and a consistently strong 4.9 out of 5 -star rating, Community Music’s course Programme established itself as a valuable resource.

Mind The Music

Previously funded by the JA Clark Trust, Youth Music, Children in Need, and The East End Community Fund, Mind the Music is an ongoing initiative that Community Music currently supports with internal funds.

This project focuses on the mental health of young people participating in existing Community Music programmes, while also extending support to those referred through collaborating organisations:

CAMHS (Child and Adolescent Mental Health Services) provides vital support for young people experiencing mental health challenges.

The Coburn Centre is an inpatient adolescent mental health facility in Newham, offering specialised care for young people requiring a more structured environment.

Mind the Music offers a combination of individual and group sessions to cater to a range of needs:

In total, 36 group sessions throughout the year across three terms.

The project's positive impact has been confirmed by research. In 2022, Community Music received a comprehensive report from the University of Essex. This research evaluated the program's effectiveness over the past two years, analysing outcomes and feedback from various stakeholders:

Artist development

Despite the absence of live events during the 2022-23 season, Community Music remained committed to fostering artistic development and community engagement. The organisation successfully pivoted to a virtual platform, hosting a series of free online masterclasses.

These dynamic sessions catered to a wide range of interests, covering essential skills in:

6

Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2023

Each masterclass featured a blend of professional music tutors and industry experts, ensuring participants received valuable insights and practical guidance from established figures in their respective fields.

Create 2020

Community Music is a proud partner in the innovative Create 20x20 initiative. This collaborative effort, cofunded by the National Lottery and Homes from Haringey, fosters dynamic youth engagement. Each week, 20x20 attracts up to 15 young people, empowering them to:

Craft Their Own Voices: Develop and produce their own radio shows and podcasts, fostering creative expression and communication skills.

Master Digital Tools: Gain valuable digital skills relevant in today's world, including audio editing and production techniques.

Record Their Music: Create and record their own music, allowing them to explore musical expression and share their artistic vision.

Address Personal and Community Issues: Utilise music as a platform to tackle issues that are important to them and their peers.

The 20x20 partnership fosters a vibrant space where young people can find their voice, develop essential skills, and become active participants in shaping their community through the power of music.

ReCharge

Community Music is proud to offer ReCharge, a dynamic youth program designed to empower young creatives aged 12-24. This free initiative provides a supportive environment for participants to explore and develop their talents across a diverse range of creative disciplines:

ReCharge sessions take place every Tuesday evening, fostering a sense of community and collaboration among young creatives. With over 15 participants attending each week, the program provides a vibrant platform for learning, exploration, and creative growth.

Mintel and CSR

Mintel, demonstrating their ongoing commitment to youth development, has continued its valued partnership with Community Music. Through this collaboration, Mintel provides beneficial resources that directly support young people engaged in Community Music's programs, empowering them to further explore their creative potential and achieve their musical aspirations.

7

Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2023

Short Courses for Adults and Professional Education

Following the lifting of lockdown restrictions, Community Music seized the opportunity to re-energize young people's engagement with on-site courses. This included a series of stimulating short courses delivered directly at the facility, featuring topics such as:

Introduction to Music Technology and Production: Equipping participants with the foundational skills to create and record their own music.

Music Production and Business Masterclasses: Offering in-depth exploration of specific areas within the music industry.

Digital Marketing: Empowering young creatives to effectively navigate the digital landscape and promote their work.

Digital Delivery and Blended Learning

Throughout the 2022-2023 academic year, Community Music embraced a multifaceted approach to learning, leveraging a combination of high-quality digital delivery and blended learning models. This strategic shift not only ensured program continuity during the pandemic but also opened doors to a wider audience.

Community Music's commitment to digital learning extends beyond delivery methods. The organisation's online support resources and library have continued to expand, offering a wealth of valuable materials accessible to students anytime, anywhere.

This emphasis on digital tools serves a dual purpose:

Equipping Young People with Transferable Skills: By prioritising digital skills development, Community Music empowers young people to gain expertise relevant across diverse industries.

Bridging the Digital Divide and Skills Gap : The organisation recognizes the importance of addressing the digital divide and the growing need for digital competencies within the cultural sector. Investing in accessible digital resources ensures all participants have the opportunity to thrive in an increasingly digital world.

Partners

Community Music worked and partnered with the following:

Houghton Festival, Sound Skool, Alexandra Palace, Continental Drifts, Transform UK/TCW/London East Alternative Provision, Tower Hamlets CAMHS, Coburn Centre, Newham, New Direction for the Cultural Education Partnership, First artists Management, Pioneer, Radio 1, University of Essex, Sunway Kooth.com, Newham Mental Health services and SMART mental health charity, London Met Police, Tower Hamlets Children and Young People's Centre, Tower Hamlets Education Wellbeing Service (THEWs), East London NHS Foundation Trust, The Tavistock and Portman NHS Foundation Trust, Whitechapel Gallery, Cardboard Citizens, The Orchestra of the Age of Enlightenment & Spitalfields Music, Sound and Music, A-Team Arts, CDR, Homes for Haringey, VIP studio sessions, SMART, Music Education, THAMES, Youth Music, New Direction. Musicians Union and National Education Union, Mayer Brown, Mintell, University of Westminster and The Arts Council.

5. The public benefit of provision

5.1 All of Community Music’s provision is intended to be of public benefit to a variety of people. The majority of Community Music’s local youth provision is accessible to anyone aged 13-24 living or studying in Tower Hamlets and Haringey, and during the Covid-19 pandemic lockdown Community Music broadened its online session reach to the whole of the UK to support young and vulnerable people through the lockdown period.

8

Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2023

5.2 Community Music does not charge fees for any course or activity on the youth programme. The higher education provision is accessible by anyone aged 18 and above and is not restricted geographically. Community Music specifically targets those people who would not normally be able to access higher education, either through a lack of formal qualifications or for financial reasons and uses targeted demographic marketing to encourage local recruitment.

5.3 Community Music’s higher education tuition fees are significantly lower than the standard degree cost and the FdA: Creative Music Production and Business course is fully supported by the student loans system for those who cannot afford the initial tuition cost outright. Monthly payment schemes are also available for other adult and HE programmes including the Music Leader course and Community Music works hard to ensure no one is excluded due to financial reasons where possible. The facilities are fully accessible and have wheelchair access.

6. Financial review

6.1 Financial aims of charity

6.2 Policy on reserves

  1. The Trustees of Community Music recognise their responsibility to have a transparent policy on managing the resources of the company, including financial reserves. They acknowledge this as a requirement under the Statement of Recommended Practice: Accounting and Reporting by Charities.

  2. The term ‘reserves’ is defined as that part of the charity’s funds that are freely available for general purposes. In the case of Community Music, almost all the income usually comes from a variety of grant aid and earned income. This would relate to income classified as unrestricted funds, which is available to spend on general charity purposes, once all its commitments have been met and its planned expenditure has been covered.

  3. The Trustees of Community Music believe that it is generally in the interests of the charity to work towards a position of holding reserves that would cover 6-12 months operating costs. This is to ensure adequate cash flow flexibility to meet emergency measures, delayed payment of grants and unpredictable variations in expected income.

  4. Community Music has increased its surplus over the past three years. This year income and surplus has increased due to the increase in students on the FDA programme, cost control and successful fundraising for equipment and youth and community projects.

6.3 Income and Turnover

The income and turnover of Community Music from 2020-2023 is: Period / Income / Surplus / (deficit)/ Total Funds 20/21/ £722,292/ £193,171/ £637,905 (restricted funds £115,675); (unrestricted funds £522,230) 21/22/ £597,198/ £108,730/ £746,635 (restricted funds £90,052); (unrestricted funds £656,583) 22/23/£510,278(£17,550/ £764,185(Restricted funds £97,886); (Unrestricted funds £666,299)

Community Music Trustees are concerned to maintain a robust business model through effective fundraising, robust cost control, protecting the CM brand’s quality and keeping ahead of the sector with initiatives.

6.4 Financial Stability and Resilience

9

Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2023

Community Music has continued to build earned income and decrease dependence on grant aid. 85% of Community Music’s income in 2022/23 is classified as unrestricted funds. Whilst remaining financially accessible for students, the Foundation Degree now generates a significant proportion of income through tuition fees and supports the delivery of the free access education programmes on offer at Community Music. Students NEEDs completing can access student finance for this programme and face no upfront costs. Community Music completes an annual risk assessment that addresses any concerns or considerations for the coming year.

Partnerships are key to CM’s continued resilience and ability to thrive. Community Music has longstanding partnerships with the University of Westminster and City & Guilds, which Community Music takes care to manage well to ensure the long-term security of our HE provision.

Principal other funding sources this year :

Community Music remains an Arts Council National portfolio client, and their current funding stands at £136,426 per year. This essential funding allows the charity to develop their core work whilst levering in funding from other sources

The Arts Council percentage ratio return is around £5.60 for every £1 invested.

6.5 Trusts and Foundations

Community Music has a good track record of securing funding from trusts and foundations. Current income includes funding from the Arts Council, National Lottery Community Grant, Mintel.

6.6 Fundraising Strategy

Community Music’s financial model remains one that seeks income from a variety of different sources and is not solely dependent on grant aid. Community Music’s key focus is to ensure the charity continues to seek new sources of income and funding, including self-generated income, to protect itself and to ensure long-term viability.

The fundraising strategy which exploits many sources of income including:

6.7 Unrestricted funding for general purposes .

Community Music is the recipient of funds from the Arts Council and was successfully awarded a threeyear National Portfolio funding agreement this year, lasting until 2026. The funding is tied to a programme of specific projects and outputs and covers core costs. The Arts Council view their funding as investment rather than grant aid and are specific about the returns they wish to see. Community Music has a good relationship with the Arts Council and the Relationship Manager is working closely with Community Music to develop that relationship further.

Community Music has continued to move forward as a more resilient, self-sufficient organisation, and continue to see the development of this new model building over the coming years. Fee paying tuition is increasingly supporting the non-fee-paying delivery whilst continuing to offer low-cost access to higher education. Community Music is also building on their corporate sponsors. Community Music continues to successfully grant funds from trusts, foundations and internal surplus which allow the charity to develop work such as the Mind the Music project and Re-Charge.

10

Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2023

7. Risk Statement

The trustees actively review the major risks to the company on a regular basis and believe that maintaining free reserves combined with regular internal review of financial controls provides sufficient protection against unforeseen financial variations. Other operational risks are assessed annually, and effective action taken to mitigate these risks.

8. Going Concern

Although evidence suggests that the emergency is over the Trustees have been carrying out a continuous assessment of the impact of COVID-19 on the operations of the charity, and considered the risks and threats posed.

The Trustees are satisfied that to date, the threat to future operations has been minimal, and whilst working arrangements have had to be adapted, this has not significantly reduced the effectiveness of the organisation.

The Trustees are monitoring events and have a protocol in place, to provide a quick response to any changes in the operating environment, but currently do not anticipate any circumstances that significantly curtail the ability of the charity to function.

The Trustees have also considered the non-COVID-19 related circumstances and projections of the charity and are satisfied that the going concern basis is appropriate for these financial statements.

9. Volunteers

All our work is carried out by our paid team. However, CM appreciates those who have given their time voluntarily to provide pro-bono advice and support.This has enhanced and enriched CM’s work. The advice and support are generally project based or relating to specific aspects.. The efforts of volunteers constitute a valuable element of the charity’s activities.

11

Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2023

Trustees' Responsibilities Statement

Directors Responsibilities

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption.

The trustees' annual report was approved on 18[th] June 2024 and signed on behalf of the board of trustees by:

H Searle Chair

J Prince Trustee

12

INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF COMMUNITY MUSIC

I report to the trustees on my examination of the financial statements of Community Music Ltd (the Charity) for the year ended 31 March 2023, which comprise the Statement of Financial Activities, the statement of financial position, statement of cashflows and related notes.

Responsibilities and basis of report

As the charity’s trustees of Community Music Ltd (who are also the directors of the company for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”).

Having satisfied myself that the accounts of Community Music Ltd are not required to be audited for this year under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011. In carrying out my examination, I have followed the Directions given by the Charity Commission (under section 145 of the 2011 Act.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. My work has therefore been undertaken so that I might state to the charity's trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for my work, for this report, or for the opinions I have formed.

Independent examiner's statement

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

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.

Roger Mutinta BA Independent Examiner Date: 18[th] June 2024

13

Community Music Company Limited by Guarantee Statement of Financial Activities For the year ended 31[st] March 2023

Note
Income and endowments
Donations and legacies
5
Charitable activities
6
Investment income
7
Other income
8
Total income
Expenditure
Expenditure on raising funds: Costs of other trading activities
9
Expenditure on charitable activities
10
Total expenditure
Net income and net movement in funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
146,591
363,465
222
-
510,278
42,664
457,897
500,562
9,716
656,583
666,299		 Restricted
funds
£
45,476
7,500
-
-
52,976
-
45,142
45,142
7,834
90,052
97,886		 2023
Total funds
£

192,067
370,965
222
-
563,254
42,664
503,039
545,703
17,550
746,635
764,185		 2022
Total funds
£
173,393
423,441
10
354
597,198
42,673
445,795
488,468
108,730
746,635
855,365

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

The notes on pages 17 to 27 form part of these financial statements

14

Community Music
Company Limited by Guarantee
Statement of Financial Position
31stMarch 2023
Note
Fixed assets
Tangible fixed assets
19
Current assets
Debtors
20
Cash at bank and in hand
Creditors: amounts falling due within one year
21
Net current assets
Total assets less current liabilities
Funds of the charity
Restricted funds
Unrestricted funds
Total charity funds
23		 2023
£
21,153
181,421
573,084
754,505
(11,473)
743,033
764,185
97,886
666,299
764,185		 2022
£
31,729
228,336
496,821
725,157
(10,251)
714,906
**746,635 **
90,052
656,583
746,635

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the board of trustees and authorised for issue on 18[th] June 2023, and are signed on behalf of the board by:

H Searle J Prince Trustee Trustee

Company Registration Number: 01967704

The notes on pages 17 to 27 form part of these financial statements

15

Community Music Company Limited by Guarantee Statement of Cash Flows For the year ended 31[st] March 2023

Cash flows from operating activities
Net income
Adjustments for:
Depreciation of tangible fixed assets
Other interest receivable and similar income
Changes in:
Trade and other debtors
Trade and other creditors
Cash generated from operations
Interest received
Net cash from operating activities
Cash flows from investing activities
Purchase of tangible assets
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
17,550
10,576
(222)
46,915
1,222
76,042
222
76,263
-
76,263
496,821
573,084		 2022
£
108,730
15,864
(10)
45,601
(36,509)
133,676
10
133,686
(47,593)
86,093
410,728
496,821

The notes on pages 17 to 27 form part of these financial statements

16

Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2023

1. General information .

The charity is a public benefit entity as defined by FRS102 and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is The Brady Centre, 192•196 Hanbury Street, London, E1 5HU

2. Statement of compliance .

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) and the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.

3. Accounting Policies

The principal accounting policies adopted in the preparation of the financial statements are as follows:

Basis of preparation

The financial statements have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable to UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP) (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006. The Charity 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 note(s)

In preparing the financial statements the trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102, the restatement of comparative items was required. After due consideration, it was concluded that no restatement of the comparatives was required.

The trustees have considered all relevant factors, including the long-term impact of COVID-19 on the charity's activities and have concluded there is no significant impact on the organisation.

It is therefore considered that the going concern status remains intact, and there are no material uncertainties about the charity’s ability to continue.

Incoming resources

Voluntary income including donations, gifts and grants that provide core funding or are of a general nature are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when:

Investment income is recognised on a receivable basis.

Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions is recognised

17

Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2023

as earned (as the related goods or services are provided). Grant income included in this category provides funding to support performance activities and is recognised where there is entitlement.

Legacy income is recognised when receipt is probable, and entitlement is established.

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

Tangible assets

Fixed assets (excluding investments) are stated at cost less accumulated depreciation. With the exception of Cycle Scheme Assets the costs of minor additions or those costing below £2,500 are not capitalized

Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its residual value, over the useful economic life of that asset as follows:

Straight-line basis over 3 years • Office equipment & furniture straight line basis over 2 years • Studio equipment straight line basis over 3 years • Computers & musical equipment straight line basis over 3 years • Cycle & computer scheme

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash generating unit to which the asset belongs. The cash generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

18

Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2023

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.

4. Limited by guarantee

Community Music Limited is a company limited by guarantee and accordingly does not have a share capital.

Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

19

Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2023

5. Donations and legacies

Mintel Group
Mayer Brown
Other Donations (under £5,000)
Grants
The Arts Council
National Foundation Youth Music
East End Community Foundation
Grants of £5000 or less
6. Charitable activities
Accredited courses • fee income
Local projects & other training • grants and fees
Other income from charitable activities - KickStart
7. Investment income
Bank interest receivable
8. Other income

Equipment sales		 Unrestricted
Funds
£
-
-
2,062
136,101
8,428
-
-
146,591
Unrestricted
Funds
£
351,750
-
11,715		 Restricted
Funds
£
-
-
-
45,476
-
-
-
45,476
Restricted
Funds
£
-
7,500
-		 Restricted
Funds
£
-
-
-
45,476
-
-
-
45,476
Restricted
Funds
£
-
7,500
-		 Total Funds
2023
£
-
-
2,062
181,578
8,428
-
-		 Total Funds
2023
£
-
-
2,062
181,578
8,428
-
-
Total Funds

2023

£

4,000

5,852

38

136,426

11,417

14,260
1,400

173,393
Total Funds
2022
£
371,220
25,277
26,944
423,441
Unrestricted
Funds
2022
£
10
Unrestricted
Funds
2022
354
**192,067 **
Total Funds
2023
£
351,750
7,500
11,715
363,465 7,500 370,965
Unrestricted
Funds
2023
£
222
Unrestricte
d Funds
2023
-

20

Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2023

10. Expenditure on charitable
activities by fund type

Unrestricted
Restricted
Total
Funds
Funds
Funds
2023
£
£
£
Local youth music promotion
-
64,577
64,577
Professional training
285,921
-
285,921
Support costs
152,541
-
152,541
438,462
64,577
503,039
11. Expenditure on charitable activities by activity type
Direct
Activities
Support
Costs
Total funds
2023
£ ££
Local youth music promotion
64,577
28,105
92,681
Professional training
285,921
115,829
402,751
Governance costs
-
7,607
7,607
350,498
152,541
503,039
12. Analysis of governance costs
Unrestricted
Funds
Restricted
Funds
Total Funds
2023

Audit Fees
6,954
-
6,954
Legal & Professional
653
-
653
Finance Marketing Other
-
-
-
Total
7,607
-
7,607
Total Funds
9. Costs of other trading
activities
Unrestricte
d Funds
Restricted
Funds
2023
£
£
£
Fundraising and publicity costs
42,664
-
42,664		 10. Expenditure on charitable
activities by fund type

Unrestricted
Restricted
Total
Funds
Funds
Funds
2023
£
£
£
Local youth music promotion
-
64,577
64,577
Professional training
285,921
-
285,921
Support costs
152,541
-
152,541
438,462
64,577
503,039
11. Expenditure on charitable activities by activity type
Direct
Activities
Support
Costs
Total funds
2023
£ ££
Local youth music promotion
64,577
28,105
92,681
Professional training
285,921
115,829
402,751
Governance costs
-
7,607
7,607
350,498
152,541
503,039
12. Analysis of governance costs
Unrestricted
Funds
Restricted
Funds
Total Funds
2023

Audit Fees
6,954
-
6,954
Legal & Professional
653
-
653
Finance Marketing Other
-
-
-
Total
7,607
-
7,607
Total Funds
9. Costs of other trading
activities
Unrestricte
d Funds
Restricted
Funds
2023
£
£
£
Fundraising and publicity costs
42,664
-
42,664		 10. Expenditure on charitable
activities by fund type

Unrestricted
Restricted
Total
Funds
Funds
Funds
2023
£
£
£
Local youth music promotion
-
64,577
64,577
Professional training
285,921
-
285,921
Support costs
152,541
-
152,541
438,462
64,577
503,039
11. Expenditure on charitable activities by activity type
Direct
Activities
Support
Costs
Total funds
2023
£ ££
Local youth music promotion
64,577
28,105
92,681
Professional training
285,921
115,829
402,751
Governance costs
-
7,607
7,607
350,498
152,541
503,039
12. Analysis of governance costs
Unrestricted
Funds
Restricted
Funds
Total Funds
2023

Audit Fees
6,954
-
6,954
Legal & Professional
653
-
653
Finance Marketing Other
-
-
-
Total
7,607
-
7,607
Total Funds
9. Costs of other trading
activities
Unrestricte
d Funds
Restricted
Funds
2023
£
£
£
Fundraising and publicity costs
42,664
-
42,664		 Restricted
Funds
£
64,577
-
-
64,577
Support
Costs
£
28,105
115,829
7,607
Restricted
Funds
£
-		 Restricted
Funds
£
64,577
-
-
64,577
Support
Costs
£
28,105
115,829
7,607
Restricted
Funds
£
-		 Total Funds
2023
£
42,664		 Total Funds
2023
£
42,664
Total
Funds
2022
£
42,673
Total
Funds
2023
£
64,577
285,921
152,541
503,039
Total funds
2023
£
92,681
402,751
7,607
350,498 152,541 503,039
Restricted
Funds
-
-
-
-		 Total Funds
2023
6,954
653
-
**7,607 **

21

Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2023

13. Analysis of support costs
(excluding governance costs)
Staff costs
Premises
Communications and IT
Human resources + Legal &
Professional
Finance costs
Support costs: Other costs		 Local Youth
music
promotion
£
23,253
3,231
676
266
135
544
28,105		 Professional
training
£
102,953
14,304
2,994
1,178
598
2,408
124,436		 Total 2023
£
126,206
17,535
3,670
1,444
733
2,952
152,541		 Total 2022
£
76,133
31,185
13,548
4,989
268
11,169
137,292

14. Net income

Net income is stated after charging/(crediting):

Depreciation of tangible fixed assets
Operating lease rentals		 2023
10,576
1,744		 2022
15,864
1,744

15. Auditors remuneration


Fees payable for the audit of the audited financial statements
Fees for non-audit services		 2023
5,454
1,500		 2022
2,394
2,790

16. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:


Wages and salaries
Social security costs
Employer contributions to pension plans
 2023
288,603
17,001
4,800
310,252		 2022
294,904
17,514
5,508
317,926

22

Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2023

17. Staff costs (continued)

The average head count of employees during the year was 16 (2021: 17). The average number of full-time equivalent employees during the year is analysed as follows:

2023 2022
Accredited courses No No
Artist development 1 1
Development, Education, Networking 1 1
Fundraising and publicity 1 1
1 1
4 4

No employee received employee benefits of more than £60,000 during the year (2022: Nil).

Key Management Personnel

Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charity was £37,212.91 (2022: £52,863).

18. Trustee remuneration and expenses

None of the trustees received any remuneration and no members received expenses during the year (2023: Nil).

No trustee expenses have been incurred during the year (2022: Nil)

23

Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2023

19. Tangible Assets

Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation		 Office
Equipment
£
13,750
-
-
13,750
11,190
853
-
-
12,043
1,707
2,500		 Studio
Equipment
£
29,156
-
-
29,156
29,156
-
-
-
29,156
-
-

 Computer
and Musical
Equipment
£
106,722
-
-
106,722
77,553
9,723
-
-
87,276
19,446
29,169		 Cycle &
Computer
Scheme
£
3,307
-
-
3,307
3307
-
-
-
3,307
-
-		 Cycle &
Computer
Scheme
£
3,307
-
-
3,307
3307
-
-
-
3,307
-
-		 Total
£
152,935
-
-
152,935
121,206
10,576
-
-
At 1 April 2022
Charge for the year
Disposals
At 31 March 2023
At 31 March 2023
At 31 March 2022
20. Debtors
131,782
21,153
31,729
2023 2022
£ £
Accounts Receivable 14,624 204,277
Accrued Income 165,000 19,355
Debtors 1,494 51
Prepayments 303 4,653
181,421 228,336

24

Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2023

21. Creditors: amounts falling due within one year

21 Cdit t flli d ithi
. reors: amouns ang ue wn one year

Accounts Payable
Accruals & Def Income
Social security and other taxes
Other creditors
TOTAL		 2023
2022
£
£
3,884
3,455
87
1,133
6,622
4,628
880
1,035
11,473
10,251

The figure of other creditors includes a pension liability of £ £880 (2022: £1,035).

22. Pensions and other post-retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £4,800 (2022: £5,508).

23. Analysis of charitable funds Unrestricted funds


General funds
Restricted funds
Youth Music • General
Children in need
Youth Music • 'Can Play, Will
Play'
Arts Council • Capital Grant		 At
1 April2022
£
656,586
At
1 April 2022
£
42,548
1,335
581
45,588
90,052		 Income
£
510,278
Income
£
45,476
-
-
7,500
52,976		 Expenditure
£
(500,562)
Expenditure
£
-
-
-
(45,142)
(45,142)		 At
31 March 2023
£
666,302
At
31 March 2023
£
69,403
1,335
581
7,946
97,886

25

Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2023

24. Analysis of charitable funds (continued) Purposes of Funds

BBC Children in Need (General Youth Music) • To support young people with mental health and wellbeing issues through creative music making (Mind the Music Programme).

J A Clarke Charitable Trust (General Youth Music) – To support young people with mental health and wellbeing issues through creative music making (Mind the Music Programme).

BBC Children in Need (General Youth Music) • To support young people with mental health and wellbeing issues through creative music making (Mind the Music Programme).

East End Community Fund (General Youth Music) – To support Re•Charge, free sessions are run by experienced tutors in professional industry standard studios. Available to those between the ages of 12 & 25. National Foundation MTM Plus (General Youth Music) • To support young people with mental health and wellbeing issues through creative music making (Mind the Music Programme).

Homes for Haringey (General Youth Music) – to enable young people to produce their own radio shows, podcasts and skills.

Arts Council Capital Grant – to acquire studio equipment and resources to broaden and increase training to its users.

25. Analysis of net assets between funds
Tangible fixed assets
Current assets
Creditors less than 1 year
26. Analysis of changes in net debt
Cash at bank and in cash
Tangible fixed assets
Current assets
Creditors less than 1 year		 Un restricted
Funds
£
1,707
700,302
(11,473)
666,299
At
1 April 2022

496,821
Unrestricted
Funds
£
2,500
664,274
(10,251)
656,523		 Restricted
Funds
£
19,446
78,440
-
97,886
Cashflow
76,263

Restricted
Funds
£
29,169
60,883
0
90,052		 Total Funds
2023
£
21,153
778,742
(11,473)
764,185
Total Funds
2,022
£
31,669
725,157
(10,251)
748,597
At
31 March 2023
573,084

26

Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2023

27. Operating lease commitments

The total future minimum lease payments under non-cancellable operating leases are as follows:

follows:

Not later than 1 year
Later than 1 year and not later than 5 years
 2023
1,584
0
1,584		 2022
1,584
549
2,133

28. Post balance sheet events

The trustees have considered the likelihood of any significant post balance sheet events and have concluded that there are none which impact the financial statements.

29. Related parties

No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the year or the previous year. There were no related party transactions during the year.

27