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2021-03-31-accounts

Islington Music Workshop Ltd

Charity No. 295214

Company No. 01762763

Trustees' Report and Unaudited Accounts

31 March 2021

Islington Music Workshop Ltd Contents

Pages
Trustees' Annual Report 2 to 6
Independent Examiner's Report 7
Statement of Financial Activities 8
Summary Income and Expenditure Account 9
Balance Sheet 10
Notes to the Accounts 11 to 18

Page 1

Islington Music Workshop Ltd Trustees Annual Report

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OJECTIVES AND ACTIVITIES

Objectives and aims

The objects of the charity are: To undertake, explore develop and promote the creative, artistic, social and educational use of multi-cultural music for the benefit of all persons especially the socially and physically disadvantaged, residing or employed in the Islington area.

Achievements and performance

IMW operates an open access system for recruitment to our course programme that includes Assisted Training Places for Islington residents who are registered disabled. The curriculum takes account of the demands of the industry and the principles of equal access for all. We continue to encourage female applicants and balance the requirements of the programme with a marketing programme to raise the level of technical education/interest among young women. We continue to run a scheme of internship for successful female graduates to provide limited but important support between qualification and employment.

The programme for the year was greatly affected by the Covid pandemic. Full-time staff were furloughed onto the Governments Job Retention Scheme where appropriate and part-time skeleton staffing was arranged for the upkeep the studio facilities throughout the year.

The HND course that was in place at the start of the year was transferred to an online delivery and all the student successfully completed.

During this period some staff were able to work from home and progress our application to the City of Westminster College for a new range of FE and HE courses to begin when Covid restrictions were lifted.

Similarly, we were also able to advance our discussions with the University of East London to establish a partnership to deliver their Level 3 and Diploma of Higher Education qualifications.

Under normal conditions, the Workshop functions five days per week from 8am-11pm for 48 weeks of the year and students are enrolled on our FE and HE programmes. Our annual nation-wide survey of studios generates extremely positive responses to our training programme. We receive a high level of interest in recruiting our graduates for employment in the industry. Our graduates go on to complete their degrees at Universities of their choice, manage studio facilities, teach, engineer and assist in major studios in the UK and USA. Alumni have gone on to win Grammies and Oscars co- writing and producing highly successful albums, film theme music and set up their own very hi-spec studios. Others have set up a very successful production studio hire businesses, become a music production educational consultant and university research consultant.

The successful development of future contracts during a very challenging time reflected the dedication and commitment of IMW staff. Dealing with the requirements of a constantly changing funding regime and course specifications is extremely time consuming and challenging and it is a testament to staff creativity and professional integrity that this was advanced.

Page 2

Islington Music Workshop Ltd Trustees Annual Report

Financial review

In 2019-20 the trustees carried out a review of the charity’s activities and the strategic plan. Our resilience this year has demonstrated the value of this review and of the practice of monitoring progress against the strategic plan. Our recovery plan is based on strong financial management and a robust strategic plan.

Public benefit

The trustees have taken due notice of the recent guidance issued by the Charity Commission concerning public benefit. The nature of our educational programmes means that the benefits enjoyed by participants are both tangible and easily identifiable, and are clearly in line with our stated aims of the promotion of the creative, artistic and educational use of multi cultural music. IMW's training programmes are supported by City and Islington College and are intended for all those who will benefit most and particularly those socially and physically disadvantaged in the Islington area.

Investment policy and objectives

Under the Memorandum and Articles of Association, the charity has the power to invest in any way the board wishes. The board, having regard to the liquidity requirements of operating a training organization in the community and to the reserves policy, have operated a policy of keeping available funds in an interest bearing deposit account and seeks to achieve a rate of deposit interest which exceeds inflation as measured by the retail prices index.

Reserves policy

The board has established the level of reserves (that is those funds that are freely available) that the charity ought to have. Reserves are needed to bridge the funding gaps between spending on the course programme and receiving funds through charges and contract fees that provide funding. In addition IMW reserves strategy includes the following provisions: winding up the affairs of the organisation including outstanding creditors, salaries and redundancy costs in the sum of £100,000 and an equipment replacement fund of £100,000. The balance of reserves is represented by a capacity building fund and normal working capital balances. The major risks to which the charity is exposed, as identified by the board, have been reviewed and systems have been established to mitigate those risks.

FUTURE PLANS

At the end of a very challenging year, IMW is well placed to pursue sustained recovery and capacity building when possible and progressing contracts with City of Westminster College and the University of East London.

Covid pandemic

The sudden emergence of the Covid pandemic in April 2020 has meant that the Board has had to take a very different view of IMW's activity over the years 20-21 and 21-22. We had already begun negotiations with City of Westminster College and the University of East London in September 2019 to relaunch our course program in January or September 2020. However the great uncertainty created by the virus and lockdowns meant that we have had to take advantage of JRS grants and finalising a restart date for onsite face-to-face courses has remained extremely difficult. Surveys of our target cohort showed us that there was no great interest is doing hands-on courses remotely.

Page 3

Islington Music Workshop Ltd Trustees Annual Report

With the success of the vaccine rollout, the board and its partners are now more confident that our relaunch can now take place in October 2021. The combination of JRS grant and our resilience and recovery reserves puts IMW in a very good place to relaunch as the vaccines take effect and the lockdown is lifted.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Charity constitution

Islington Music Workshop Limited is a company limited by guarantee governed by its Memorandum and Articles of Association dated 19th October 1983 and amended to allow for current governance arrangement on 4 September 1986. It is registered as a charity with the Charity Commission. Anyone over the age of 18 can apply to become a member of the Company by application to the board and there are currently 6 members, each of whom agrees to contribute £1 in the event of the charity winding up.

Appointment of trustees

All members are circulated with invitations to nominate members of the board prior to the AGM advising them of the retiring board members and requesting nominations for the AGM. When considering co-opting trustees, the Board has regard to the requirement for any specialist skills needed.

Organisation

The board of management, which can have up to 9 members, administers the charity. The board meets quarterly and there are sub-committees covering development, finance and audit which meets as required. A Workshop Director is appointed by the board to manage the day-to-day operations of the charity. To facilitate effective operations, the Workshop Director has delegated authority, approved by the board, for operational matters including financial, employment and programme related activity.

Trustee induction and training

New trustees undergo an orientation day to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity. During the induction day they meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their Appointment of trustees.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Risk Management

The trustees have a risk management strategy that comprises:

Page 4

Islington Music Workshop Ltd Trustees Annual Report

This work has identified only a few minor new risks but it has resulted in better emergency procedures and contingency plans and has given the impetus for better planning. Particular attention has focused on non-financial risks arising from fire, health and safety of staff and students. A key element in the management of financial risk is the setting of a reserves policy and its regular review by trustees.

REFERENCE AND ADMINISTRATIVE DETAILS

Company No. 01762763

Charity No. 295214

Registered Office

24 Seward Street London EC1V 3PA

Directors and Trustees

The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year:

J. Bahula S.B. Catto E. Donkor W. Sullivan M.E. Zinovieff

Company Secretary

S.B. Catto

Accountants

Quantic Accountancy Limited 1 Second Avenue Bluebridge Halstead Essex CO9 2SU

The trustees (who are also the directors of Islington Music Workshop Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

Page 5

Islington Music Workshop Ltd Trustees Annual Report

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102).

Signed on behalf of the board

signed on 17/12/2021, 13:28:25 GMT

W. Sullivan

Trustee

16 December 2021

Page 6

Islington Music Workshop Ltd Independent Examiners Report

Independent Examiner's Report to the trustees of Islington Music Workshop Ltd

I report to the charity trustees on my examination of the accounts of Islington Music Workshop Ltd for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet and the related notes.

Responsibilities and basis of report

As the trustees of the charity (and also its directors 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 the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

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

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 accounts to be reached.

signed on 17/12/2021, 15:42:17 GMT

S J Foster FCCA Quantic Accountancy Limited 1 Second Avenue Bluebridge Halstead Essex CO9 2SU 16 December 2021

Page 7

Islington Music Workshop Ltd Statement of Financial Activities

for the year ended 31 March 2021

Notes
Income and endowments
from:
Charitable activities
4
Investments
5
Other
6
Total
Expenditure on:
Charitable activities
7
Other
8
Total
Net gains on investments
Net expenditure
9
Transfers between funds
Net expenditure before other
gains/(losses)
Other gains and losses
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricte
d funds
2021
£
18,275
3,399
64,325		 Restricted
funds
2021
£
-
-
-		 Total funds
2021
£
18,275
3,399
64,325		 Total funds
2020
£
70,120
7,440
-
85,999
10,112
145,609		 -
-
1,005		 85,999
10,112
146,614		 77,560
21,796
241,805
155,721
-		 1,005
-		 156,726
-		 263,601
-
(69,722)
-		 (1,005)
-		 (70,727)
-		 (186,041)
-
(69,722) (1,005) (70,727) (186,041)
(69,722)
1,992,884		 (1,005)
18,039		 (70,727)
2,010,923		 (186,041)
2,196,964
1,923,162 17,034 1,940,196 2,010,923

Page 8

Islington Music Workshop Ltd Summary Income and Expenditure Account

for the year ended 31 March 2021

Income
Interest and investment income
Gross income for the year
Expenditure
Depreciation and charges for impairment of fixed assets
Total expenditure for the year
Net expenditure before tax for the year
Net expenditure for the year		 2021
£
82,600
3,399
85,999
118,625
38,101
156,726
(70,727)
(70,727)		 2020
£
70,120
7,440
77,560
225,387
38,214
263,601
(186,041)
(186,041)

Page 9

Islington Music Workshop Ltd Balance Sheet

at 31 March 2021

Company No.
01762763
Notes
2021
£
Fixed assets
Tangible assets
11
1,292,653
1,292,653
Current assets
Debtors
12
1,451
Cash at bank and in hand
651,591
653,042
Creditors:Amount falling due within one year
13
(5,499)
Net current assets
647,543
Total assets less current liabilities
1,940,196
Net assets excluding pension asset or liability
1,940,196
Total net assets
1,940,196
The funds of the charity
Restricted funds
14
Restricted income funds
17,034
17,034
Unrestricted funds
14
General funds
502,460
Designated funds
1,420,702
1,923,162
Reserves
14
Total funds
1,940,196		 2020
£
1,330,754
1,330,754
1,153
735,640
736,793
(56,624)
680,169
2,010,923
2,010,923
2,010,923
18,039
18,039
572,182
1,420,702
1,992,884
2,010,923

These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

For the year ended 31 March 2021 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

Approved by the board on 16 December 2021

And signed on its behalf by:

S B Catto

signed on 17/12/2021, 16:02:57 GMT S.B. Catto

Trustee

16 December 2021

Page 10

Islington Music Workshop Ltd Notes to the Accounts

for the year ended 31 March 2021

Basis of preparation

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

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Change in basis of accounting or to previous accounts

There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.

Fund accounting

Income

Income
Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity
income becomes entitled to, and virtually certain to receive, the income and the amount of
the income can be measured with sufficient reliability.
Income with related Where income has related expenditure the income and related expenditure is
expenditure reported gross in the SoFA.
Donations and Voluntary income received by way of grants, donations and gifts is included in the
legacies the SoFA when receivable and only when the Charity has unconditional
entitlement to the income.
Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the
donations and gifts gift/donation to which it relates.
Donated services These are only included in income (with an equivalent amount in expenditure)
and facilities where the benefit to the Charity is reasonably quantifiable, measurable and
material.
Volunteer help The value of any volunteer help received is not included in the accounts.
Investment income This is included in the accounts when receivable.
Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value
revaluation of fixed at the end of the year.
assets
Gains/(losses) on This includes any gain or loss on the sale of investments.
investment assets

Page 11

Islington Music Workshop Ltd Notes to the Accounts

Expenditure

Taxation

The charity is exempt from corporation tax on its charitable activities.

Tangible fixed assets and depreciation

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

useful life:
Leasehold property 0.8% Straight line
Studio equipment 10% Straight line & reducing
balance
Fixtures & Fittings 10% Straight line

Freehold investment property

Investment properties are measured initially at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or losses are taken to the Statement of Financial Activities as they arise.

Trade and other debtors

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

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Page 12

Islington Music Workshop Ltd Notes to the Accounts

Trade and other creditors

Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Leased assets

Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs.

Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Pension costs

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

2 Company status

The company is a private company limited by guarantee and consequently does not have share capital.

Page 13

Islington Music Workshop Ltd Notes to the Accounts

3 Statement of Financial Activities - prior year

3
Statement of Financial Activities - prior year
Income and endowments from:
Charitable activities
Investments
Total
Expenditure on:
Charitable activities
Other
Total
Net income
Net income before other
gains/(losses)
Other gains and losses:
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
4
Income from charitable activities
Advancement of education
5
Income from investments
Deposit account interest
6
Other income
Covid grants received		 Unrestricted
funds
2020
£
70,120
7,440
77,560
21,796
240,688
262,484
(184,924)
(184,924)
(184,924)
2,177,808
1,992,884
Unrestricted
£
18,275
18,275
Unrestricted
£
3,399
3,399
Unrestricted
£
64,325
64,325		 Restricted
funds
2020
£
-
-
-
-
1,117
1,117
(1,117)
(1,117)
(1,117)
19,156
18,039
Total
2021
£
18,275
18,275
Total
2021
£
3,399
3,399
Total
2021
£
64,325
64,325		 Total
funds
2020
£
70,120
7,440
77,560
21,796
241,805
263,601
(186,041)
(186,041)
(186,041)
2,196,964
2,010,923
Total
2020
£
70,120
70,120
Total
2020
£
7,440
7,440
Total
2020
£
-
-

Page 14

Islington Music Workshop Ltd Notes to the Accounts

7 Expenditure on charitable activities

Unrestricted Total Total
2021 2020
£ £ £
Expenditure on charitable
activities
Advancement of education 10,112 10,112 21,796
Governance costs
10,112 10,112 21,796
8 Other expenditure
Unrestricted Restricted Total Total
2021 2020
£ £ £ £
Employee costs 89,062 - 89,062 156,655
Motor and travel costs - - - 1,499
Premises costs 12,242 - 12,242 35,769
Amortisation, depreciation,
impairment, profit/loss on 37,096 1,005 38,101 38,214
disposal of fixed assets
General administrative costs 4,812 - 4,812 6,545
Legal and professional costs 2,397 - 2,397 3,123
145,609 1,005 146,614 241,805
9 Net expenditure before transfers
2021 2020
This is stated after charging: £ £
Depreciation of owned fixed assets 38,101 38,214
Independent Examiner's fee 2,397 3,135
10 Staff costs
Salaries and wages 84,524 145,267
Social security costs 3,999 7,513
Pension costs 539 3,875
89,062 156,655
No employee received emoluments in excess of £60,000.
The average monthly number of full time equivalent employees during the year was as follows:
2021 2020
Number Number
Employees 3 3
3 3

Page 15

Islington Music Workshop Ltd Notes to the Accounts

11 Tangible fixed assets

Cost or revaluation
At 1 April 2020
At 31 March 2021
Depreciation and
impairment
At 1 April 2020
Depreciation charge for the
year
At 31 March 2021
Net book values
At 31 March 2021
At 31 March 2020
12 Debtors
Prepayments and accrued income
13 Creditors:
amounts falling due within one year
Other taxes and social security
Other creditors
Accruals and deferred income		 Land and
buildings
£
1,334,245
1,334,245
69,552
10,674
80,226
1,254,019
1,264,693		 Studio
equipment
£
283,501
283,501
217,558
27,415
244,973
38,528
65,943
2021
£
1,451
1,451
2021
£
1,794
-
3,705
5,499		 Fixtures &
Fittings
£
12,123
12,123
12,005
12
12,017
106
118		 Total
£
1,629,869
1,629,869
299,115
38,101
337,216
1,292,653
1,330,754
2020
£
1,153
1,153
2020
£
6,542
36,556
13,526
56,624

Page 16

Islington Music Workshop Ltd Notes to the Accounts

14 Movement in funds

Restricted funds:
Restricted income funds:
Equipment
Total
Unrestricted funds:
General funds
Designated funds:
Contingency fund
Capital asset fund
Total
Revaluation Reserves:
Total funds		 At 1 April
2020
18,039
18,039
572,182
100,000
1,320,702
1,420,702
2,010,923		 Incoming
resources
(including
other
gains/losses)
£
-
-
85,999
-
-
-
85,999		 Resources
expended
£
(1,005)
(1,005)
(155,721)
-
-
-
(156,726)		 At 31
March
2021
£
17,034
17,034
502,460
100,000
1,320,702
1,420,702
1,940,196

Purposes and restrictions in relation to the funds:

Restricted funds:
Equipment For future equipment purchases
Designated funds:
Contingency fund To wind up affairs of the organisation should income/ funds cease
Capital asset fund Seperate capital and revenue assets of the charity

15 Analysis of net assets between funds

Fixed assets
Net current assets		 Unrestricted
funds
£
1,283,606
639,556
1,923,162		 Restricted
funds
£
9,047
7,987
17,034		 Total
£
1,292,653
647,543
1,940,196

Page 17

Islington Music Workshop Ltd Notes to the Accounts

16 Reconciliation of net debt

Reconciliation of net debt
Cash and cash equivalents
Net debt		 At 1 April
2020
£		 Cash
flows
£		 At 31
March
2021
£
735,640 (84,049) 651,591
735,640
735,640		 (84,049)
(84,049)		 651,591
651,591

17 Commitments

Operating lease commitments

Annual commitments under non-cancellable operating leases are as follows:

2021 2021 2020 2020
Land and
buildings		 Other Land and
buildings		 Other
£ £ £ £
Operating leases with expiry date:
Pension commitments
2021 2020
£ £
The pension cost charge to the company
amounted to: 539 3,875

18 Related party disclosures

Controlling party

The company is limited by guarantee and has no share capital; thus no single party controls the company.

Page 18