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2024-03-31-accounts

COMMUNITY MUSIC

TRUSTEES REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31[ST] MARCH 2024

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 2024

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

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2024

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 2024.

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 (Resigned November 2024, Replaced by Eddie Gower November 2024 to January 2025) Company Secretary Richard Clegg, Resigned, replaced by John Prince Independent Examiner: Roger Mutinta Bankers Lloyds Bank 40 Rosslyn Hill London NW3 1NL Solicitors Harbottle and Lewis 14 Hanover Square London W1S 1HP

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2024

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.

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.

1.4 Trustee induction: new trustees receive an induction pack and session from the Managing Director 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 Chair before appointment and are invited as an observer to one 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

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2024

  1. Artist and Business Support

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

  3. Key Targets for 2023-24

Ensuring Continued Provision of Youth Music Opportunities in London

Our 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

We are 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, we will partner with professional promoters and festival organisers. This collaboration will enable us 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 they have set. Community Music reviews their aims, objectives and activities each year to assess the success of each key activity, and the benefits they have brought to those groups of people they are set up to help. This ensures Community Music’s aims, objectives and activities remain focused on their 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.

Termination of The Creative Music Production and Business Degree

CM’s Degree Access Two-Term Course was under review by its academic partner the University of Westminster for re-accreditation of its major module, which it successfully achieved in August 2023. However, shortly after re-accreditation had been achieved, it emerged that the changes made to the part of the course under accreditation had significantly increased the cost of delivering it, without securing a matching increase in income.

This situation coincided with the discovery of a change in the government’s approach to access to Higher Education which meant that organisations like CM could no-longer provide access to students coming from outside the traditional O and A level route but now had to compete to recruit students from the same sources as the universities themselves.

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2024

This situation led to the resignation of the Chief Executive in September 2023, stepping down in November 2023 to be replaced by an interim Chief Executive until January 2024. Initially, it was thought that the both the 1[st] and 2[nd] Year cohorts would be able continue the course, until it emerged that the number of students needed to make the course financially viable exceeded both the actual number recruited and CM’s ability to accommodate the required additional students within its existing accommodation at Brady Street.

This led to a rapid and successful engagement with the university to take on all of CM’s students after the end of the first term in December 2024. This secured the educational future for the 60 plus students but led all the tutors and support staff for the course being released at the end of January 2024. It also led to a major reduction in CM’s income for 2023/24 due to the reduction of Degree Access course income, and its elimination in 2024/25, leaving the Art’s Council as the only major source of income for CM for the immediate future.

The impact of the closure of Degree Access course was to refocus CM on its community outreach programmes as its main activity, but also led to these courses being closed down in the short to medium term as the staff resources were no-longer available to run them:

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 now supports with internal funds.

This project focuses on the mental health of young people participating in existing Community Music programs, 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.

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:

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2024

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.

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.

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2024

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 2023-24 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 University Malaysia, 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, PyroRadio, 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.

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.

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2024

5.3 Community Music’s higher education tuition fees were 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 - Community Music works hard to ensure no one is excluded due to financial reasons where possible. The facilities are fully accessible and have full 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 our 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

Period - 2021-22 2022-23 2023-24
Income:
Unrestricted - £597,198 £510,278 £245,613
Restricted - £90,052 £52,976 £49,440
Surplus(deficit) - £108,730 £17,550 (£250,466)

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

6.4 Financial Stability and Resilience

Community Music has continued to build earned income and decrease dependence on grant aid. 85% of Community Music’s income in 2023-24 is classified as unrestricted funds. Whilst remaining financially accessible for students, the Foundation Degree generated a significant proportion of the income through tuition fees and supports the delivery of the free access education programmes on offer at Community Music. With the termination of this source of income, CM faces the challenge of replacing this level of income when all the traditional sources have declined or ended. CM has sufficient reserves to relaunch

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2024

it’s community activities in 2024/25 on a modest scale, but requires new partnerships to leverage CM’s reputation and resources, along with new funding, to move forward and prosper from 2025/26 onwards.

Community Music remains an Arts Council National portfolio client, and their current funding stands at £136,426 per year, but progress will need to be demonstrated to enable confirmation of its ongoing support. This is likely to be contingent on successful applications to new funding opportub=nities.

The Arts Council percentage ratio return has been 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.

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.

The rapid change in CM’s circumstances means that new ways forward, including partnership with another music organisation are now being considered.

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 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

The trustees consider CM to still be a viable organisation, having discharged the vast bulk of its obligations and sharply reduced ongoing expenditure, but are conscious that without either new source(s) of income and/or new partnerships, the medium-term outlook for CM is limited.

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2024

9. Volunteers

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

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2024

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 2024 which comprise the Statement of Financial Activities, the statement of financial position, statement of cashflow 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, ACCA Independent Examiner Date: 17[th] December 2024

13

Community Music Company Limited by Guarantee Statement of Financial Activities For the year ended 31[st] March 2024

Note
Income and endowments
Donations and legacies
5
Charitable activities
6
Investment income
7
Other income
8
Total income
Expenditure
Expenditure on raising funds
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
£
139,109
105,189
1,315
-
245,613
49,750
449,136
498,886
(253,273)
666,299
413,026		 Restricted
funds
£
-
49,440
-
-
49,440
-
46,633
46,633
2,807
97,886
100,693		 2024
Total funds
£

139,109
154,629
1,315
-
295,053
49,750
495,769
545,519
(250,466}
764,185
513,719		 2023
Total funds
£
192,067
370,965
222
-
363,254
42,664
503,039
545,703
17,550
746,635
764,185

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 31[st] March 2024

Note
Fixed assets
Tangible fixed assets
19
Current assets
Debtors
20
Cash at bank and in hand
Total current assets
Creditors: amounts falling due within one year
21
Net current assets
Net current assets
Funds of the charity
Restricted funds
Unrestricted funds
23
Total charity funds		 2024
£
29,122
58,103
447,270
505,373
(20,776)
484,598
513,719
100,693
413,026
513,719		 2023
£
21,153
181,421
573,084
754,505
(11,473)
743,033
764,185
97,886
666,299
764,185

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 17[th] December 2024, and are signed on behalf of the board by:

H Searle Trustee

J Prince 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 2024

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		 2024
£
(250,466)
14,543
(1,315)
123,318
9,303
(104,617)
1,315
(103,302)
(22,512)
(125,814)
573,084
447,270		 2023
£
17,550
10,576
(222)
46,915
1,222
76,042
222
76,263
-
76,263
496,821
573,084

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 2024

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 2024

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 are largely independent of the cash inflows from other assets or groups of assets.

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Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2024

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 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.

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Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2024

5. Donations and legacies


Other Donations (under £5,000)
Grants
The Arts Council
National Foundation Youth Music
Charitable activities
Accredited courses • fee income
Local projects & other training • grants and fees
Other income from charitable activities
Investment income
Bank interest receivable
Other income
Equipment sales		 Unrestricted
Funds
£
2,144
136,965
-
139,109
Unrestricted
Funds
£
97,500
-
7,689
105,189		 Restricted
Funds
£
-
-
-
-
Restricted
Funds
£
-
49,440
-
49,440		 Restricted
Funds
£
-
-
-
-
Restricted
Funds
£
-
49,440
-
49,440		 Restricted
Funds
£
-
-
-
-
Restricted
Funds
£
-
49,440
-
49,440		 Restricted
Funds
£
-
-
-
-
Restricted
Funds
£
-
49,440
-
49,440
49,440
Unrestricted
Funds
2024
£
1,315
Unrestricted
Funds
2024
-

6. Charitable activities

7. Investment income

Bank interest receivable

8. Other income

20

Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2024

10. Expenditure on charitable
activities by fund type


Unrestricted
Funds
£
Local youth music promotion
4,341
Professional training
303,409
Support costs
141,386
449,136
11. Expenditure on charitable activities by activity type
9. Costs – other trading activities
Unrestricted
Funds
£
Fundraising and publicity costs
49,750		 Restricted
Funds
£
-


Total
Funds
2024
£
49,750		 Total
Funds
2023
£
64,577
285,921
152,54
1
503,03
9
Total
Fund
s
2023
£
42,6
64		 Total
Fund
s
2023
£
42,6
64
Restricted
Funds
£
46,633
-
-
46,633		 Total
Funds
2023
£
500,974
303,409
141,386
495,769

Local youth music promotion
Professional training
Governance costs
12. Analysis of governance costs
Audit & accountancy fees
Legal & Professional		 Direct
Activities
£

50,974
303,409
-		 Support
Costs
£
20,337
103,049
18,000		 Total
funds
2024
£
71,311
406,458
18,000		 Total
Funds
2003
£
92,681
402,751
7,607
503,039
Total
Funds
2023
£
6,954
653
7,607
354,383 141,386 495,769
Unrestricted
Funds
£
3,000
15,000
18,000		 Restricted
Funds
£
-
-
-		 Total
Funds
2023
£
3,000
15,000
18,000

21

Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2024

13. Analysis of support costs
(excluding governance costs)
Staff costs
Premises
Communications and IT
Human resources & Legal costs
Finance costs
Support costs: Other costs		 Local Youth
music promotion
£
15,127
2,944
802
1,246
31
1,246
21,396		 Professiona
l training
£
72,104
14,035
3,821
5,940
149
5,941
101,990		 Total
2024
£
87,231
16,979
4,623
7,186
180
7,187
123,386		 Total
2023
£
126,206
17,535
3,670
1,444
733
2,952
152,541

14. Net income

15. Auditors remuneration
Fees payable for the audit of the audited financial statements
Fees for non-audit services
Net income is stated after charging/(crediting):
Depreciation of tangible fixed assets
Operating lease rentals		 2024
£
2,000
1,000
2024
£
14,543
1,584		 2023
£
10,576
1,744
2023
£
5,454
1,500

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		 2024
£
219,135
11,369
3,932
234,436		 2023
£
288,603
17,001
4,800
310,404

22

Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2024

17. Staff costs (continued)

17. Staff costs(continued)
2023
No
1
1
1
1
4
2024
No
Accredited courses 1
Artist development 1
Development, Education, Networking 1
Fundraising and publicity -
3
No employee received employee benefits of more than £60,000 during the year (2023: 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 £nil (2023: £37,213).

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 (2023: Nil)

23

Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2024

19. Tangible Assets

Cost
At 1 April 2023
Additions
At 31 March 2024
Depreciation		 Office
Equipment
£
13,750
20,400
34,150
12,043
4,820
16,863
17,287
1,707		 Studio
Equipment
£
29,00156
-
29,156
29156
-
29,156
-
-		 Computer
and Musical
Equipment
£
106,722
2,112
108,834
87,276
9,723
96,999
11,835
19,446		 Cycle &
Computer
Scheme
£
3,307
-
3,307
3307
-
3,307
-
-		 Total
£
152,935
22,512
175,447
131,782
14,543
At 1 April 2023
Charge for the year
At 31 March 2024
At 31 March 2024
At 31 March 2023
20. Debtors
146,325
29,122
21,153
2024 2023
£ £
Accounts Receivable 16,188 14,624
Accrued Income 37,500 165,000
Other sundrydebtors - 1,494
Prepayments 4,416 303
58,104 181,421

24

Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2024

21. Creditors: amounts falling due within one year

. reors: amouns ang ue wn one year
Accounts Payable
Accruals & Def Income
Social security and other taxes
Other creditors		 2024
2023
£
£
2,414
3,884
18,000
87
230
6,622
132
880
20,776
11,473

The other creditors relate to a pension liability of £ £132 (2023: £880).

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 £5,243 (2023: £4,800).

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 April 2023
£
666,299
At
1 April 2023
£
88,024
1,335
581
7,946
97,886
Income
£
245,613
Income
£
49,440
-
-
-
49,440		 At
At
Expenditure
31 March
2024
31 March
2023
£
£
£
(498,886)
413,026
666,302
At
At
Expenditure
31 March
2024
31 March
2023
£
£
£
(46,633)
90,831
53,587
1,335
1,335
-
581
581
-
7,946
60,172
(46,633)
100,693
115,675

25

Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2024

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 ReCharge, free sessions are run by experienced tutors in professional industry standard studios. Available to those between the ages of 12 and 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.

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
Restricted
Funds
Funds
£
£
17,287
11,835
416,515
88,858
(20,776)
-
413,026
100,693
At

1 April 2023
Cashflow
31
£
£

573,084
(125,814)
Unrestricted
Restricted
Funds
Funds
£
£
1,707
19,446
676,065
78,440
(11,473)
-
690,536
97,886		 Total
Funds
2024
£
29,122
505,373
(20,776)
513,719
Total
Funds
2,023
£
21,153
754,505
(11,473)
764,185

At
March 2024
£
447,270

26

Community Music Company Limited by Guarantee Notes to the Financial Statements

For the year ended 31[st] March 2024

27. Operating lease commitments

The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
£
Not later than 1 year
549
Later than 1 year and not later than 5 years
-
549		 2023
£
1,584
549
2,133

28. Operating lease commitments

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