## **COMMUNITY MUSIC** 

## **TRUSTEES REPORT AND FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 31[ST] MARCH 2025** 

**CHARITY NUMBER: 293419** 

**COMPANY NUMBER: 01967704** 

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2025 

|**Contents**|**Page Number**|
|---|---|
|Trustees' annual report (incorporating the director's report)|**3 to 10**|
|Independent examiner’s report to the members|**11**|
|Statement of financial activities (including income and||
|expenditure account)|**12**|
|Statement of financial position|**13**|
|Statement of cash flows|**14**|
|Notes to the financial statements|**15 to 25**|



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## Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2025 

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 2025. 

## **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 John Prince Eshan Haque Adrian Sykes **Chief Executive Officer** Richard Clegg (Resigned November 2024, Replaced by Eddie Gower November 2024 to January 2025). Replaced by Lee Clegg acting as General Manager from February 2024 to Present **Company Secretary** Richard Clegg, Resigned, replaced by John Prince **Independent Examiner:** Roger Mutinta **Bankers** Lloyds Bank 40 Rosslyn Hill London NW3 1NL 

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2025 

## **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. 

1.9 Due to the extraordinary circumstances between September 2024 and March 2025, which necessitated high levels of direct support and management from the Trustees were financially compensated to acknowledge the significant contributions and the additional time and effort dedicated during this period. 

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

## 1. Overall Strategic Aim 

- To be a leading provider of youth music opportunities in London. 

## 2. Youth Music Opportunities 

- To provide opportunities for young people to access and participate in creative music making in modern genres. 

## 3. Professional Training 

- To create structured access to professional training in music including higher education and vocational training. 

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2025 

## 4. Live Music Promotion 

- To partner closely with professional promoters and festival organisers to promote new talent in successful live music contexts that guarantee audiences. 

5. Artist and Business Support 

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

## 6. **Key Targets for 2025/26** 

## **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 endeavour to partner with professional promoters and festival organisers. This collaboration will enable us to: 

- **Promote New Talent:** By securing performance opportunities in successful live music contexts that guarantee audiences, we will champion the emergence of new talent. 

- **Artist and Business Support:** We will provide artists with artist and business support to cultivate successful careers. This dual focus on artistic development and business acumen will empower young musicians to achieve independence in the music industry. 

## **3. Ensuring our work delivers our aims** 

In shaping and reviewing Community Music’s aims and objectives for the year and planning its 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 revise access. This ensures Community Music’s aims, objectives and activities remain focused. 

## **4. Achievements & Performance** 

## **Arts Council NPO Status 2023-2026** 

The Arts Council is early into its review. 

## **CM Activity in 2024/25** 

With the termination of CM’s Degree Access Course (Creative Music Production & Business Degree) the Income CM had received for the course was eliminated in 2024/25, leaving the Art’s Council as the only major source of income for CM for the immediate future. This necessitated the release of all the staff working on the course, subject to appropriate redundancy arrangements. 

The impact of the closure of Degree Access course was to refocus CM on its community outreach programmes as its main activity, but it 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. In 2024/25 a number of these courses where restarted either wholly or in-part. However the lack of ongoing funding and administrative support meant that it was only possible to support Create 2020 to the end of 2024/25. 

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2025 

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

- Mind the Music offers a combination of individual and group sessions to cater to a range of needs: - **Online Group Sessions:** These sessions foster peer connection and a sense of community, allowing young people to share experiences and support one another. 

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

## **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: 

- **Music Production:** Learn the essential skills to create and record your own music. 

- **DJing:** Master the art of DJing, from beat matching and mixing to developing your own unique style. 

- **Digital Skills:** Gain valuable proficiency in essential digital tools for creative expression, including audio editing and production software. 

- **Podcasting:** Discover the world of podcasting, from concept development to recording and editing. 

- **Social media:** Learn how to effectively leverage social media platforms to showcase your work and connect with a wider audience. 

- **Business & Marketing:** Develop the business acumen needed to navigate the creative industry, including marketing strategies and self-promotion techniques. 

- **Photography:** Explore the fundamentals of photography and hone your visual storytelling skills. 

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2025 

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. 

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

## **Former Partners** 

Community Music has 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 and the University of Westminster, 

## **Current Partners** 

The Arts Council, the National Lottery and Haringey 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. 

## **6. Financial review** 

## **6.1 Financial aims of charity** 

- To maintain reserves to cover 6-12 months operating costs. 

- To implement a sustainable fundraising strategy. 

## **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 

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2025 

adequate cash flow flexibility to meet emergency measures, delayed payment of grants and unpredictable variations in expected income. 

4. With the termination of the Degree Access course, along with the actions taken by the Trustees to deal the with the challenges that followed, Community Music has experienced a decrease in surplus over the past few years. This year, our income and surplus have decreased due an inability to immediately replace the income lost, and a very challenging in fundraising environment. 

## **6.3 Income and Turnover** 

|Period|2021-22|2022-23|2023-24|2024-25|
|---|---|---|---|---|
|Income:|||||
|Unrestricted|£597,198|£510,278|£245,613|£145,252|
|Restricted|£90,052|£52,976|£49,440|£48,444|
|Surplus(deficit)|£108,730|£17,550|(£250,466)|(£47,840)|



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

Community Music Trustees are committed to maintaining a robust business model, but the current funding environment is unfavourable with all major funding agencies facing significant financial pressure. With support from an experience fund raiser in 2024/25 CM looked alternative options for securing new funds but none were successful. 

## **6.4 Financial Stability and Resilience** 

With the termination of the Degree course, CM continues to face the challenge of replacing this level of income when all the traditional sources have declined or ended. CM had sufficient reserves to relaunch its community activities in 2024/25 on a modest scale but lacks the means to continue this in 2025/26 without additional and significant sources of new funding. 

Community Music remains an Arts Council National portfolio client, and their current funding stands at £136,426 per year, but CM was unable to secure new sources of funding required in 2024/25 for the Arts Council to confirm its ongoing financial support. The Arts Council requirements have become increasingly onerous for a small organisation. 

## **6.5 Trusts and Foundations** 

Community Music has a good track record of securing funding from trusts and foundations. However, the environment for grant funding during 2024/25 was harsh – the incoming Labour Government did not announce any new funding for the Arts Sector whilst financial pressures on Local Government removed them as meaningful alternative. CM engaged with a fund raiser to identify new sources of funding and whilst she was unable to identify any opportunities amongst the Trusts etc, she did find some significant sources of funding in Further Education. However, this funding is dependent of Government Policy decisions over an uncertain timescale. Funding from the Arts Council and the National Lottery Community Grant remain the only significant source of external grant funding in 2024/25. 

## **6.6 Fundraising Strategy** 

Given the current situation, the Board decided in January 2025 that if the situation had not materially improved by June 2025, they would review whether CM could continue its current level of activities without assured support from the Arts Council. 

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2025 

## **6.7 Funding Pressures** . 

Community Music is the recipient of funds from the Arts Council and was successfully awarded a threeyear National Portfolio funding agreement in 2023/24, running until 2025/26. As the funding is tied to a programme of specific projects and outputs and covers core costs, but it is insufficient to cover all CM’s costs. The Arts Council view their funding as investment rather than grant aid and are specific about the returns they wish to see, which in the current circumstances are unachievable. 

Although CM has had a very good relationship with the Arts Council, it has maintained the requirement for the outcomes and outputs as per the funding agreement, whilst acknowledging CM’s radically changed circumstances. This risks CM spending scarce resources without assurance that it will be refunded by the Arts Council. 

The rapid change in CM’s circumstances has limited the available options, including forming a partnership with another music organisation. Although this option has been actively and fully investigated, it has not been possible to achieve, due to a poor match with the limited pool of potential partners available. 

## **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 be a viable organisation, having fulfilled its obligations and significantly reduced ongoing expenditure. However, they are aware that without new sources of income or partnerships, the short-term outlook for CM, as it currently operates and is structured, is limited. 

## **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. 

## **Trustees' Responsibilities Statement** 

Directors Responsibilities 

- (a) The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations and in accordance with United Kingdom Generally Accepted Accounting Practice. 

- (b) Company law requires the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the situation of the charity and of the surplus or deficit profit or loss of the charity for that period. 

- (c) in preparing the financial statements the directors are required to: 

   - i. Select suitable accounting policies and then apply them consistently. 

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Community Music Company Limited by Guarantee Trustees Report (Incorporating the Director’s Report) For the year ended 31[st] March 2025 

- ii. Make judgements and accounting estimates that are reasonable and prudent. 

iii. State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

   - iv. Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

- (d) The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the charity and that enable them to ensure that the financial statements comply with the Companies Act. 

- (e) The directors are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities; and 

- (f) Where appropriate, the directors are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. In the case of CA 06 Co.•s418(2) each of the persons who are directors at the time when the report is approved, the following applies: 

   - (a) So far as each director is aware, there is no relevant audit information (information needed by the company's auditors in connection with preparing their report) of which the company's auditors are unaware; and 

   - (b) Each director has taken all the steps that he ought to have taken as a director to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. 

## **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 23[rd] December 2025 and signed on behalf of the board of trustees by: 

John Prince John Prince (Dec 23, 2025 11:34:09 GMT) A Sykes - Trustee J Prince - Trustee 23/12/2025 23/12/2025 

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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 2025 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: 

- accounting records were not kept in respect of the charitable company as required by section 386 of the 2006 Act: or 

- the financial statements do not accord with those records; or 

- the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the financial statements give a 'true and fair view' which is not a matter considered as part of an independent examination; or 

- the financial statements have not been prepared in accordance with the Charities SORP (FRS102). 

I have not identified any concerns or other matters during the examination that need to be highlighted in this report to ensure a proper understanding of the financial statements 


Roger Mutinta BA, ACCA Independent Examiner Date: 23[rd] December 2025 

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## Community Music Company Limited by Guarantee Statement of Financial Activities For the year ended 31[st] March 2025 

|**Income and endowments**<br>Note<br>Donations<br>5<br>Charitable activities<br>6<br>Investment income<br>7<br>Other income<br>8<br>**Total income**<br>**Expenditure**<br>Expenditure on raising funds<br>9<br>Expenditure on charitable activities<br>10<br>**Total expenditure**<br>**Net income and net movement in funds**<br>**Total funds brought forward**<br>**Total funds carried forward**||Unrestricted<br>funds<br>£<br>140,209<br>3,624<br>1,419<br>-<br>**145,252**<br>6,370<br>235,166<br>**241,536**<br>(96,284)<br>399,781<br>**303,497**|Restricted<br>funds<br>£<br>-<br>48,444<br>-<br>-<br>**48,444**<br>-<br>-<br>**- **<br>48,444<br>100,693<br>**149,137**||**2025**<br>**Total funds**<br>**£**<br>**140,209**<br>**52,068**<br>**1,419**<br>**-**<br>**193,696**<br>**6,370**<br>**235,166**<br>**241,536**<br>**(47,840)**<br>**500,474**<br>**452,634**|2024<br>Total funds<br>**£**<br>139,109<br>154,629<br>1,315<br>-|
|---|---|---|---|---|---|---|
|||||||295,053|
|||||||49,750<br>495,769|
|||||||545,519|
|||||||<br>(250,466)<br>764,185|
|||||||<br>513,719|



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 15 to 25 form part of these financial statements 

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## Community Music Company Limited by Guarantee Statement of Financial Position 31[st] March 2025 

|**Fixed assets**<br>Tangible fixed assets<br>Note<br>19<br>**Current assets**<br>Debtors<br>20<br>Cash at bank and in hand<br>**Total current assets**<br>**Creditors: amounts falling due within one year**<br>21<br>**Net current assets**<br>**Net current assets**<br>**Funds of the charity**<br>Restricted funds<br>Unrestricted funds<br>23<br>**Total charity funds**||**2025**<br>**£**<br>**5,454**<br>**42,480**<br>**415,184**<br>**457,664**<br>**(10,484)**<br>**447,180**<br>**452,634**<br>**149,137**<br>**303,497**<br>**452,634**|2024<br>£<br>29,122<br>58,103<br>447,270|
|---|---|---|---|
||||505,373<br>(20,776)|
||||484,597|
||||513,719|
||||<br>100,693<br>413,026|
||||<br>513,719|



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 23[rd] December 2025, and are signed on behalf of the board by: 

||JohnPrince|
|---|---|
||John Prince (Dec 23, 2025 11:34:09 GMT)|
|A Sykes|J Prince|
|Trustee|Trustee|
|23/12/2025|23/12/2025|
|**Company Registration Number: 01967704**||



The notes on pages 15 to 25 form part of these financial statements 

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## Community Music Company Limited by Guarantee Statement of Cash Flows For the year ended 31[st] March 2025 

|**Cash flows from operating activities**<br>Net income<br>_Adjustments for:_<br>Depreciation of tangible fixed assets<br>Other interest receivable and similar income<br>_Changes in:_<br>Trade and other debtors<br>Trade and other creditors<br>Cash generated from operations<br>Interest received<br>Net cash from operating activities<br>**Cash flows from investing activities**<br>Purchase of tangible assets<br>**Net increase in cash and cash equivalents**<br>**Cash and cash equivalents at beginning of year**<br>**Cash and cash equivalents at end of year**|**2025**<br>£<br>**(47,840)**<br>**23,668**<br>**(1,419)**<br>**15,622**<br>**(10,292)**<br>**(20,261)**<br>**1,419**<br>**(18,842)**<br>**-**<br>**(32,086)**<br>**447,270**<br>**415,184**|2024<br>£<br>(250,466)<br>14,543<br>(1,315)<br>123,318<br>9,303<br>(104,617)<br>1,315|
|---|---|---|
|||(103,302)<br>(22,512)<br>(125,814)<br>573,084<br>447,270|



The notes on pages 15 to 25 form part of these financial statements 

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Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2025 

## 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: 

- The donor specifies that the grant or donation must only be used in future accounting periods; or 

- The donor has imposed conditions which must be met before the charity has unconditional entitlement 

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 

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Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2025 

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: 

- expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods. 

- expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. 

- other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities. 

- All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis. 

## **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. 

16 



Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2025 

## **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. 

17 



## Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2025 

## **5. Donations** 

|**Donations**|||||||
|---|---|---|---|---|---|---|
|Other Donations (under £5,000)<br>**Grants**<br>The Arts Council<br>National Foundation Youth Music<br>**haritable activities**<br>Accredited courses • fee income<br>Local projects & other training • grants and fees<br>Other income from charitable activities<br>**vestment income**<br>ank interest receivable<br>**ther income**<br>uipment sales||Unrestricted<br>Funds<br>£<br>13<br>140,196<br>- <br>**140,209**<br>Unrestricted<br>Funds<br>£<br>-<br>-<br>3,624<br>**3,624**||Restricted<br>Funds<br>£<br>-<br>-<br>-|||
|||||**-**|||
|||||Restricted<br>Funds<br>£<br>-<br>48,444<br>-|||
|||||**48,444**|||
||||||**Unrestricted**<br>**Funds**<br>**2025**<br>**£**<br>**1,419**<br>**Unrestricted**<br>**Funds**<br>**2025**<br>**-**||



## **6. Charitable activities** 

## **7. Investment income** 

Bank interest receivable 

## **8. Other income** 

Equipment sales 

18 



Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2025 

|**9. Costs – other trading activities**<br>Unrestricted<br>Funds<br>£<br>Fundraising and publicity costs<br>6,370<br>**10. Expenditure on charitable**<br>**activities by fund type**<br>Unrestricted<br>Funds<br>**£**<br>Local youth music promotion<br>-<br>Professional training<br>157,400<br>Support costs<br>77,766<br>**235,166**<br>**11. Expenditure on charitable activities by activity type**<br>Direct<br>Activities<br>£<br>Local youth music promotion<br>-<br>Professional training<br>157,400<br>Governance costs<br>-<br>**157,400**<br>**12. Analysis of governance costs**<br>Unrestricted<br>Funds<br>£<br>Audit & accountancy fees<br>3,060<br>Legal & Professional<br>6,000<br>**9,060**|**9. Costs – other trading activities**<br>Unrestricted<br>Funds<br>£<br>Fundraising and publicity costs<br>6,370<br>**10. Expenditure on charitable**<br>**activities by fund type**<br>Unrestricted<br>Funds<br>**£**<br>Local youth music promotion<br>-<br>Professional training<br>157,400<br>Support costs<br>77,766<br>**235,166**<br>**11. Expenditure on charitable activities by activity type**<br>Direct<br>Activities<br>£<br>Local youth music promotion<br>-<br>Professional training<br>157,400<br>Governance costs<br>-<br>**157,400**<br>**12. Analysis of governance costs**<br>Unrestricted<br>Funds<br>£<br>Audit & accountancy fees<br>3,060<br>Legal & Professional<br>6,000<br>**9,060**||Restricted<br>Funds<br>£<br>-|Restricted<br>Funds<br>£<br>-|<br>|**Total**<br>**Funds**<br>**2025**<br>**£**<br>**6,370**<br>**Total**<br>**Funds**<br>**2025**<br>**£**<br>**-**<br>**157,400**<br>**77,766**<br>**235,166**<br>**Total**<br>**funds**<br>**2025**<br>**£**<br>**11,769**<br>**214,337**<br>**9,060**<br>**235,166**<br>**Total**<br>**Funds**<br>**2023**<br>£<br>**3,060**<br>**6,000**<br>**9,060**||Total<br>Fund<br>s<br>**2024**<br>**£**<br> 49,750<br>Total<br>Funds<br>2024<br>£<br>50,974<br>303,409<br>141,386<br>495,769<br>Total<br>Funds<br>2024<br>£<br>72,371<br>405,398<br>18,000<br>495,769<br>Total<br>Funds<br>2024<br>£<br>**3,000**<br>**15,000**|
|---|---|---|---|---|---|---|---|---|
||||Restricted<br>Funds<br>**£**<br>-<br>-<br>-||||||
||||**-**||||||
|||Support<br>Costs<br>£<br>11,769<br>56,937<br>9,060<br>**77,766**<br>Restricted<br>Funds<br>£<br>-<br>-<br>**-**|||||||
|||||||||18,000|



19 



## Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2025 

|**13. Analysis of support costs**<br>**(excluding governance costs)**<br>Local Youth<br>music promotion<br>£<br>Staff costs<br>377<br>Premises<br>3,345<br>Communications and IT<br>352<br>Human resources & Legal costs<br>5,690<br>Finance costs<br>19<br>Support costs: Other costs<br>1,986<br>**11,769**<br>**14. Net income**<br>Net income is stated after charging/(crediting):<br>Depreciation of tangible fixed assets<br>Operating lease rentals<br>**15. Auditors remuneration**<br>Fees payable for the audit of the audited financial statements<br>Fees for non-audit services|Professiona<br>l training<br>£<br>1,822<br>16,181<br>1,705<br>27,527<br>93<br>9,608<br>**56,936**||**Total**<br>**2025**<br>£<br>**2,199**<br>**19,526**<br>**2,057**<br>**33,217**<br>**112**<br>**11,594**<br>**68,705**<br>**2025**<br>£<br>**23,668**<br>**-**<br>**2025**<br>£<br>**2,000**<br>**1,060**|Total<br>2024<br>£<br>87,231<br>16,979<br>4,623<br>7,186<br>180<br>7,187<br>123,386<br>2024<br>£<br>14,543<br>1,584<br>2024<br>£<br>2,000<br>1,000|
|---|---|---|---|---|
||||||
||||||



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

|Wages and salaries<br>Social security costs<br>Employer contributions to pension plans|**2025**<br>**£**<br>**2,643**<br>**155**<br>**48**<br>**2,846**|2024<br>£<br>219,135<br>11,369<br>3,932|
|---|---|---|
|||234,436|



20 



Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2025 

## **17. Staff costs** _**(continued)**_ 

|Accredited courses<br>Artist development<br>Development, Education, Networking<br>Fundraising and publicity|2025<br>No<br>**-**<br>**-**<br>**-**<br>-<br>**0**|2024<br>No<br>**1**<br>**-**<br>**-**<br>-|
|---|---|---|
|||**1**|



No employee received employee benefits of more than £60,000 during the year (2024: 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 (2024: £nil). 

## **18. Trustee remuneration and expenses** 

During the year, one trustee received a £7,000 ex-gratia payment (2024: £nil). 

21 



Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2025 

## **19. Tangible Assets** 

|**19. Tangible Assets**||||||||||
|---|---|---|---|---|---|---|---|---|---|
|**Cost**<br>At 1 April 2024<br>Additions<br>At 31 March 2025<br>**Depreciation**||Office<br>Equipment<br>**£**<br>34,150<br>-<br>**34,150**<br>17,313<br>11,383<br>**28,696**<br>**5,454**<br>1,707||Studio<br>Equipment<br>**£**<br>29,156<br>-<br>**29,156**<br>29,156<br>-<br>**29,156**<br>**-**<br>-|Computer<br>and Musical<br>Equipment<br>**£**<br>108,834<br>-<br>**108,834**<br>96,999<br>11,835<br>**108,834**<br>**-**<br>19,446||Cycle &<br>Computer<br>Scheme<br>**£**<br>3,307<br>-<br>**3,307**<br>3,307<br>-<br>**3,307**<br>**-**<br>**-**||**Total**<br>**£**<br>175,447<br>**-**|
||||||||||**175,447**|
||||||||||146,775<br>**23,218**|
|**20. Debtors**<br>Accounts Receivable<br>Accrued Income<br>Prepayments<br>At 1 April 2024<br>Charge for the year<br>**At 31 March 2024**<br>**At 31 March 2024**<br>At 31 March 2023||||||||||
||||||||||**169,993**|
||||||||||**5,454**|
||||||||||21,153|
|||||||||||
||||||||**2025**<br>**£**<br>**-**<br>**38,607**<br>**3,874**||**2024**<br>£<br>16,188<br>37,500<br>4,416|
||||||||**42,481**||58,104|



22 



Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2025 

## **21.[Creditors: amounts falling due within one year ]** 

|**f**||
|---|---|
|**21.Creditors: amounts alling due within one year**<br>Accounts Payable<br>Accruals & Def Income<br>Social security and other taxes<br>Other creditors|**2025**<br>2024<br>**£**<br>£<br>**3,702**<br>2,414<br>**6,705**<br>18,000<br>**-**<br>230<br>**78**<br>132|
||**10,484**<br>20,776|



The other creditors relate to a pension liability of £ £nil (2024: £132). 

## **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 £nil (2024: £5,243). 

## **23. Analysis of charitable funds** 

|**Unrestricted funds**<br>General funds<br>**Restricted funds**<br>Youth Music • General<br>Children in need<br>Youth Music • 'Can Play, Will Play'<br>Arts Council • Capital Grant|At<br>1 April 2024<br>£<br>399,781<br>At<br>1 April 2024<br>£<br>88,024<br>1,335<br>581<br>10,753<br>**100,693**|Income<br>£<br>145,252<br>Income<br>£<br>-<br>-<br>-<br>48,444<br>**48,444**|**At**<br>At<br>Expenditure<br>**31 March**<br>**2025**<br>31 March<br>2024<br>£<br>**£**<br>£<br>(241,536)<br>**303,497**<br>413,025<br>**At**<br>At<br>Expenditure<br>**31 March**<br>**2025**<br>31 March<br>2024<br>**£**<br>**£**<br>£<br>-<br>**88,024**<br>90,831<br>-<br>**1,335**<br>1,335<br>-<br>**581**<br>581<br>-<br>**50,167**<br>7,946|
|---|---|---|---|
||||**-**<br>**149,137**<br>100,693|



23 



Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2025 

## **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**<br>Tangible fixed assets<br>Current assets<br>Creditors less than 1 year<br>Tangible fixed assets<br>Current assets<br>Creditors less than 1 year<br>**26. Analysis of changes in net debt**<br>Cash at bank and in cash||Un restrict ed<br>Restricted<br>Funds<br>£<br>5,454<br>Funds<br>£<br>-<br>303,527<br>149,137<br>(10,484)<br>-<br>**303,497**<br>**149,137**<br>Unrestricted<br>Restricted<br>Funds<br>£<br>17,287<br>Funds<br>£<br>11,835<br>416,515<br>88,858<br>(20,776)<br>-<br>**413,026**<br>**100,693**<br>At<br>1 April 2024<br>Cashflow<br>**31**<br>£<br>£<br>447,270<br>(32,086)|**Total**<br>**Funds**<br>**2025**<br>**£**<br>**5,454**<br>**457,664**<br>**(10,484)**|
|---|---|---|---|
||||**452,634**|
||||**Total**<br>**Funds**<br>**2024**<br>**£**<br>**29,122**<br>**505,373**<br>**(20,776)**<br>**513,719**<br>**At**<br>**March 2025**<br>**£**<br>**415,184**|



24 



Community Music Company Limited by Guarantee Notes to the Financial Statements For the year ended 31[st] March 2025 

## **27. Operating lease commitments** 

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

|e total future minimum lease payments under non-cancellable operating leases are as|follows:||
|---|---|---|
|Not later than 1 year<br>Later than 1 year and not later than 5 years|**2025**<br>**£**<br>**-**<br>**-**<br>**-**|**2024**<br>**£**<br>**1,584**<br>**-**|
|||**1,584**|



## **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** 

Due to the extraordinary circumstances between September 2024 and March 2025, which necessitated high levels of direct support and management from the Trustees, they were financially compensated to acknowledge their significant contributions and the additional time and effort they dedicated during this period. 

25