SCOTS MUSIC GROUP (A company limlled by guaranlee) REPORT AND FINANCIAL STATEMENTS for Ihe year ended 30 June 2025 Chority No: SC032702 Company No: SC265190 lllllmll "AEkth6ZV* 2510212026 COMPWIES HOUSE A07 #242 Whitelaw Wells Chartered Accountants 9 Ainslle Place Edlnburgh EH3 6AT SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 June 2025 Toble of Contents l Director's Report......--.-.......- . I.1 OBJECTIVES AND AIMS................................................... ot4'ectives.......................... Aims................................... 1.1.2 12 ACHIEVEMENTS AND PERFORMANCE....... .... 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 Core Progromme ......... . Income & Class Viability-...-....................-............................ Diversity & Inclvsion:......................................................... Scots Music in the Community:... Affiliated GfOUPS:.. 1.3 SMG BOARD. OFFICE AND ORGANISATION .. 1.3.1 Board................... 1.3.2 VoKJnteefS..................................................................... 1.3.3 Sloff ..................-..-....-.-....................................... 1.3.4 Tvlors..................... 1.3.5 12 12 .13 .13 .14 1.4 FINANCIAL REVIEW.................. 1.4.1 Year 2024-25.... 1.4.2 Principal funding 50￿ces....-....-.............-................... ..... .. 1.4.3 Financial 5trategy................................................. 1.4.4 Reserves Policy ............... 15 .15 .15 .15 .15 1.5 RISK MANAGEMENT............................................ . 16 1.6 PLANS FOR THE FUTURE............................................................................... 1.6.1 Yeor 202&26........................................................... .... 1.6.2 Longer Term ........................................................ . 18 .18 -19 1.7 STRUCTURE. GOVERNANCE AND MANAGEMENT............................... ... .21 Goveming Document......................................... -21 Recruitmenl ond Appointment of Direclors.............................................................21 Directois, Induction and Tr¢ining.... .21 Organisalional Structure........-..-.................-................................................................21 Reference and Administrative InfomiolK)n................ ..22 1.7.2 1.7.3 1.7.4 1.7.5 1.8 DIRECTOR'S RESPONSIBILITIES.... . .23 2 Finance Report..............-.- 2.1 Independent Examlner's Report.............................. .. . .. 2.2 Slalement of Flnanciol Actlvllles for Year Ended 30 June 2025.. . ..24 .24 .26 2.3 Balance Sheet 0130 June 2025........ .27 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 June 2025 2.4 Noles Fomilng Part ofthe Financial Slatements............................................... 29 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the yeor ended 30 Jvne 2025 Director's Report The Directors are pleased to presenl their Direclors, Reporl together with the financial slatements of the charity for Ihe year ending 30 June 2025 which are also prepared to meet the requiremenls for a tTUStees' report and accounts for Charity Law purF)oses. The financial stalements comply wth the Charities ond Truslee Investment {Scotlandl Act 2005. the Charities Accounts (Scotlandl Regulations 2006 (as amended), the Companies Acl 2CK16. the Memorandum and Articles of Association. and Accounting and Reporting by Charities: Stalement 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 1021 leffective l January 20151. 1.1 OBJECTIVES AND AIMS l.l.l Objectives The objectives of Ihe chatilable company are to: To create a critical relationship of respect and status to Scoltish music, song and dance Ihat it may live in the heart of the community and beyond. To build a repertoire in the Scottish idiom with reference to the past and present and into the future. To encourage and maintain the oral and aural transmission of the Scotlish tradition. To create opportunities to foster connections wilh, and explore the traditions of. the music. song ond dance of other Cu￿Ures. To bring the best praclitioners of Scottish music. song and dance into the life of the organisation as performers and as tutors to inspire and encourage our students. To give our sludents the skills and opportunities to perform together in Ihe communily. To maintain a democratic and participative slyle of voluntary organisation. SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the yeor ended 30 June 2025 1.1.2 Alms In pursuit of these objectives. Scots Music Group ISMGI teaches, promoles ond performs Scottish traditional music. song and dance. It offers a comprehensive programme. including weekly classes. short courses. one-day workshops, monthly events and specific communily projecls. The organisation also provides music sessions and community performance opportunities. SMG raises funding for the programme through charging fees for classes. events and membership, donations, fundraising activities by members and securing external grant funding where possible. SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 June 2025 1.2 ACHIEVEMENTS AND PERFORMANCE 1.2.1 Core Programme Over the past year SMG has continued to develop the programme of classes, short courses and workshops which ran for 30 weeks over Ihree lerms. Most of our inslrument ond song classes for this year were in-person classes. One class conlinued completely online: the Slow Session Class. The Banjo class has occasional in-person classes to supplemenl the regular online offering. This was due to the lutors for Ihese classes being located o dislance from Edinburgh and several of the sludenls for the Slow Session Class living abroad. Our evening classes, which ore mainly single instrument. were held in James Gillespie's High School. Our daytime classes in Mixed Instrumenl and Song were held in several local church halls in Gorgie and Morningside. The number5 of students enrolled in the year 2024-25 were: 346 in Term 1. 327 in Term 2 and 278 in Term 3. Although there was an increase from the previous year12023-241, these numbers are still significanlly lower than those prior to the Covid 19 lockdown. Classes Classes offered in the year 2024-25 covered by this report were: Instrumenl No. Classes No. Tutor(s) No. Students fferm l) Fiddle 76 Guitar 37 Whistle 22 Smallpipes Ukelele 5-String Banjo io Piano Accordian Mixed Inslrumenl 106 Song 28 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for Ihe year ended 30 June 2025 In Ihe Mixed Inslrument classes studenls learn about playing in sessions. playing with other instruments ond arranging tunes into sets. Mosl SMG tutors encourage leorning by ear with a t)ackup of written music. stramashes are held al the end of Term-l and Term-3. where each class plays 0 short sel to all Ihe other classes running at the some lime. These are always enjoyed by slvdents and lulors. 1.2. 7.2 Workshops During the year we organised one mixed instrument one-day workshop: a Come & Play mixed instrument workshop. our 71h in February 2025. This was very successfully hosted by Nigel Galherer. There were two song workshop5 during the year: a Winler Song Gaithering in Dec 24. and a Summer Song Goithering in May 25. both led by Mary Mccann and lan Davis. 1.2.1.3 Short Courses In March/April 2025, we ran a 4-week short course on-line in Banjo. in response lo demand from sludents. During the Summer Term a second Playlng for Danclng short course was held over four weeks. This involved looking ot some of the fepertoire of the Ceilidh Caleerie Dance Band: learning the tvnes and the skills needed lo get the dancers, feel off the floor. including appropriate speeds and rhythms. Some of the attendees of these courses from last year and this year have been welcomed into Ceilidh Caleerie. In the Summer Term, we also ron o short course in Song with Ruth Kirkpatrick. 1.2.1.4 Merchandise We updated & reprrnted our existing three very popular A5 tvne-books, and sales of these have been good. A composite on-line version was made available for pvrchaseldownload later in the year. We also market a range of T-shirts and Hoodies wilh the SMG logo through our on-line shop. and profils from these sales go towards operating costs. 1.2.2 Income & Class Viability The main income for our organisation comes from class fees, memberships, donotions and fundraising activities. Our policy is that normally our class SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 June 2025 income should cover tutor's fees. some Irovel expenses and venue costs. As port of a prudent rinancial strategy, our policy is lo only continue with classes that cover their costs. excepl in limited circumstances where other factors would justify a short-lerm105s-making situation. e.g.. an investment in the future stralegy for a particular closs. As in past years we have tried as far as possible to maintain classes with o less than oplimum number of participants and which are not breaking even. as a way of building for the fvlure and encouraging the continued participation of our sludents. Where appropriate, and with the agreement of tutors and students who have signed up for specific closs, we have sought lo combine classes with very low numbers, or as a last resorl cancel classes. We have continued to receive generous donolions from our members and friends. bolh as additions when booking classes and freestanding during the year. All donations are very welcome ond we thank everyone for their confinued support. 1.2.3 Diversity & Inclusion: We have helped a number of people wth particular needs access our classes and events where a barrier is apparent. We do this Ihrough recruiting volunteers to help wtth addilional tasks. extra student support from the office. supporting tutors and offering free carer tickels al ceilidhs. We hope this will improve diversity and participation. olthough we recognise that as a small organisation we are not alwoys able lo meet every need. 1.2.4 Scots Music In the Commvnlty." SMG has been instrumentol in fostering the recent resurgence of interest in troditional music. song and dance. parlicularly in the Edinburgh and Lothians geographic area. The commitment and enthusiasm of our tutors have encouraged our members lo share their love of Iraditional music wilh the wider community by means of sessions, ceilidhs and other performance opportunities. SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for Ihe year ended 30 Jvne 2025 1.2.4.1 Open Traditional Sessions Sessions are an important parl of traditional music-making but are often difficult and daunling for newcomers to join. To help students to learn the typical session repertoire and gain experience in a mixed instrument contexl. we have run a slow session class followed by a pub-based slow session to enable our students to enjoy playing in a relaxed atmosphere and have an authentic session experience. Some of our current and past students have orgonised new session5 in pubs and created other opportvnities to play music together through their own iniliatives. Each year over the summer break when regular classes have stopped several studenls in our daytime mixed instrument classes continued to meel in their own homes. taking tums to host and using the tunes introduced in their classes os a basic repertoire. During the year two of our students have organised several mixed-insfrument sessions in Carlops Village Hall when all are welcome to play for a few hours in friendly company. The music was based on tunes from Ihe SMG and Nigel Gatherer's tune books as well as those learned in SMG closses. The money raised has been donated moinly to SMG funds, bul also to other charities. Another of our student5 has a￿anged several Slow Sessions at Queen Margaret Universily. These are opportunities lo play tunes from Nigel Gatherer's Slow Session repertoire, and donation5 roised were shared between SMG and other causes. There are many session5 held in Edinburgh and Ihe Lothians. and SMG members con regulady be seen plawng at and supporting Ihese community events. 1.2.4.2 Cafe Ceilidh Café Ceilidh sessions are held in the Storytelling Centre and are normally well supported by performers and visitors. There is a￿ayS a colleclion forSMG funds but otherwise it is a free event where people are welcome to drop in as they wish. Six Cafe Ceilidhs were held during Ihe year in the wonderful Storytelling Court at Scottish Storytelling Centre on the High Street, Edinburgh. They continue to SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS lor the yeor ended 30 June 2025 be ably hosted by Marianne Hendry and lan Davies. with the Cafe Ceilidh Xtel (the house band) providing three sets of tunes each time to complement the incredible variety of turns from the individuals and smoll groups who appear on the day: some giving their first-ever performance in fronl of on audience. as wells many pieces from more seasoned performers. The Café Ceilidh on St Patrick's Day was very successful as mony people wanted to take a turn. At the end of each evenl everyone goes home hoppy, having had a delightful afternoon of music and song. 1.2.4.3 Sl Bride S Fundraiser Ceilidhs For many years SMG has run a regular ceilidh programme at the St Bride's Centre. often selling out prior lo Ihe event. SMG organised ceilidhs provide an imporlanl ond regular contribulion lo our funds a5 well as an opportunity to showcase Scollish traditional music for dancing to the many visitors lo Edinburgh from beyond Scotland. A different ceilidh band plays each month and are of the highest standard within Scotland. Sl Bride's has the benefit of o bar run by the Centre and a lorger capacity than most alternative venues. Our ceilidhs depend for success on support of the venue staff bul especially on the dedicated SMG team of staff and ceilidh volvnteers who manoge Ihe door, ticket sales and the raffle. ensuring thal Ihese events run smoothly and safely on the night. The capacity of the hall is 180. and this enables us to enjoy an enthusiaslic. exciling atmosphere. Holding regular. well-attended ceilidhs is very important to the future viability and success of the SMG as any surplus generoted enables us to have the funds to support classes wth lower numbers. keep the price of classes affordable and employ our hard-working staff. This year, lo contain cosls. the ceilidhs were organised and run by a board member. after Ihe initial setup phase by the office. Once again, ceilidhs were sold out in November. December & January, and proved popular with locals and touri5t5 alike. We continued our series into 2025126 with two additional ceilidhs held in July and August for the first time. 10 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 Jvne 2025 1.2.5 Affillated Groups: Allhough the individuol groups within the SMG fami￿ hove been fomed lo encourage participolion ond the enjoyment of sharing music amongst themselves ond with Ihe wider community. they are often able to make valuable conlribulions to our funding from their aclivities. In return these groups are often oble to toke advonlage of reduced room booking and inclusion in our public liability insurance policy. Several other groups have fomed over Ihe years. ond hove now spun off to become seporolely monoged and operated organi5alions eg Songslream Choir. Auld Spice Ceilidh band. Cuffent offiliated groups are covered below.. 1.2.5.1 Ceilidh Caleerie Dance Bond Ceilidh Caleerie is o self-odministered Scols Mvsic Group dance band that started in 2006 a5 Sarah Norlhcott's 'Playing for Ceilidh Dancing, closs. It has now ployed to over two hundred charitable ceilidhs and other events in return for a modest fee. most of which is donoted to SMG. The band is open to SMG slvdents who con commil to attend rehearsals lon the last Sunday of each month at Dean Bowling Club in stockbridge) and willing lo engoge with the core reperloire of donce sels. There are currently around 25 active members- mony being old timers but severol havingjoined the band after ottending Soroh's 'Playing for Dancing, class in the 2024-25 summer term. The barbd has a very experienced caller {also fiddlerl and sufficient PA equipment to be able lo omplify up to more than fifteen players at large events. In the inclusive period July 2024 lo June 2025. Ceilidh Caleerie ployed for I S diverse events. all but one of which were in Edinbvrgh: Elle Sailing Club RNLI fundroising ceilidh- Art in the P¢Jk. Spylow Public Park: Big Beach Busk. Portobello: Jacobite5 Mountaineering Club 501h anniversary ceilidh," 'Race2Paris' fundraising ceilidh.. Polski Most (Pole5 in Scotland culturol organisalionl ceilidh: Green Team Winter Celebration." St. Columba's Winchburgh fundraising Burns Night.. Cromond Kirk ceilidh: Forth Canoe Club ceilidh.. Heriot-watt Kayaking and Mountaineering Club ceilidh: Nopier Musical Theatre Society ceilidh: Westem General Hospltal garden party: Community Showcase al Royal Highland Show.. SMG Ceilidh at st Brides. The band's website is: htl ceilidhcaleeriedanceband.word ess.com SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 JUM 2025 1.2.5.2 Nigel's Allstars Nigel's Allstars grew out of a mixed in51Tument class led by Nigel Gatherer, o long- slanding SMG tutor. Several of the studenls wanted to share their love of traditional Scotlish music with the wider community. Since 2010 they hove played in community and day-care centres. retirement communilies. hospitals ond for othetwise isolated groups in the community. The resulting proceeds are donated lo Scots Music Group. There are currently ten active Allstars. In the 2024125 year the Allstars ployed at: Saughton Park Bond5tand: Lyle Court retiremenl home. Barnlon,. SMG Beach Busk. Portobello: Cluny Music and Memories: Eric Liddell Cenlre Afternoon Tea Club: Broomhill Day Centre. Penicuik: Funeral. Warriston Cremotorium. Cluny Evening Men's Club.. Granton Castle Walled Garden. 1.3 SMG BOARD, OFFICE AND ORGANISATION 1.3.1 Board SMG held our most recent Annual General Meeling in Christ Church Centre on 2 February 2025. We have held regular monthly Board Meetings. and these have been well attended. We also keep in touch with current events and decisions that are needed between meetings through emails. Decisions made via email discussion ore vpdoted and ratified al the followrng Board Meeting. Two of ovr volunteer board members resigned during the year 2024-25: Edna Wilson Ichairl and Helen Wright. The board expressed its grateful thanks for Iheir seryice to SMG. whilst serving on the board. We recruited three new board members during the year= Carole Ross, Chades Everitt and Graham Hutton. The board welcomed these new members and look foward to working with Ihem in the coming yearlsl. Jamie Taylor took over the chair role ofter Edna Wilson resigned, and the chair role was advertised on the Edinburgh Volunteer Hub. Graham Hutton responded to this and look over the role in September 2025. 12 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the yeor ended 30 June 2025 The Board has been proactively addressing the worrying financial situation we had been in over recent years due to the impact of Covid on SMG, but are pleased to report an improving silualion in Ihis financial year, and a posilive forecasl for 2025-26. We were fortunate to have had reasonably healthy reserves in our bank which have sustained us in recent years. 1.3.2 Volunteers As a grassroots organisalion. SMG is reliant on volunteers to ensure Ihe smooth running of its board, classes and events. We require volunleer support for our board of trustees. some administralivelfinance lasks, class evenings, events and ceilidhs and in markeling SMG and our events to the wider public. Our volunteers are trained and manoged by our paid slaff ond board members, as appropriale. We a150 have a team of volunteers who run our monthly ceilidhs. minding the door, checking tickets, selling raffle lickels and generally making sure the event5 run Smooth￿ and safely. Volunteers also assist during classes. selling out chairs, running the tuck shop and managing the Hub la central golhering areo in James Gillespie's High School). Our volunleer book-keeper (Monika Galecl lefl the organisolion in April 2025. and we expressed our thanks for the valuable work she vndertook for the charity. We again advertised wth the Edinburgh Volunteer Hub for a new book-keeper and have now engaged o new person IAnno Silusorenkol. who is keen to use her accounting skills lo support charities within Edinburgh: Anna started in Sept 2025. 1.3.3 Sloff We had three members of slalf working with us during Ihe year covered by this report Sarah Northcott, SMG Development Worker; Helen Reid, SMG Coordinator (July 24 - Sepl 241: and lain McQueen, SMG Administrator Ifrom Nov 241. Helen Reid left the chatily in September 2024, afler many years valuable service as a volunteer, followed by Administrator and more recently Co- SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for Ihe year ended 30 June 2025 ordinator staff roles. We thank her for her work for SMG and wish her well in her future career. Sarah Northcotl's role as Development Workerchanged from a contractor role to a staff position in April 25. We are pleased that Sarah has taken up this appoinlment and are very grateful for her support through testing times in recent years since 2020, ju51 before Covid slruck. 1.3.4 Tutors We are fortunate that Ihe tutors who choose lo come and work with us are musicions and singers of the highesl quality. They provide real inspiration and encouragement lo our students al all levels. selling appropriale and achievable slandords. and developing an awareness of the wide range of musical styles and traditions wilhin Scollish music. dance and song. A Tutor's Gathering was arranged in September 2024 and led by Sarah Northcolt. our Development Worker. Not all lutors were able to attend but Ihose that did were able lo meet with other tulors and raise and discuss issues relating lo their work wth SMG. In addilion, it wa5 possible to outline any relevanl expectations of tulors required by our organisation. During the year we discussed o further Tutor Project to give our tutors access to continued professional developmenl training. The Project was again funded through a small arts grant of £980 from Tosgadh (funded by the National Lottery through Creotive Scollandl and we are graleful for Iheir support. Due to workloads and Ivlor availability. the acluol implemenlation of this project has been delayed Until 2025-26, with Tasghad'5 agreement. We will continue to encourage lutors lo communicate information of wider opportunities and events in which they are involved to be shored with our students. 1.3.5 Offlce We signed a new lease with Ihe &ic Liddell Community in Morningside Road in April 2025 for o year: the rent increased to £197 pcm. Our stoff work from one small room and from home. 14 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 June 2025 1.4 FINANCIAL REVIEW 1.4.1 Year 2024-25 During the year the charity recorded a surplus of £8.49912024.. deficit of £9.268). of which £7,671 12024: £9,268) relaled to unrestricled funds. before transfers. Al the year-end total reserves amovnled lo £45.74912024: £37.2501, of which £225 12024.. £4501 were lied up in fixed assets. £4.868 12024: £2.4601 were other designated funds. £82812024: £nill were restricted and £39.82812024: £34,340) were free reserve5. 1.4.2 Prlnclpal funding sources Principal funding sources were income from membership subscriptions. donations and fundraising activities, and fees from classes, workshops, short courses ond event5. 1.4.3 Financial Strategy The overoll financial strategy for SMG is based on four elements: I l our programme of classes. workshops and short courses shovld cover their own costs, supported in specific cases by grants for classes {eg Lothian & Borders Piping Society who have supported our small pipes beginners, class). We further aim to provide a surplus of between £1 Ok- £15k which goes to support (21 2) income from memberships. donolions and fundroising aclivities supports office costs, staff costs and development activities. This is supplemented by the planned surplus generoled from our programme of tuition 3) income from special activities & events should be used to maintain/ boost reserves and support new ventures 41 grant income {if available), can help support each of these areas Ibut may be restricled 10 Specific uses or projects - eg LBPS support of small pipes classes and Tasghad tutor Iraining supporti. 1.4.4 Reserves Pollcy SMG requires a reserve of readily accessible funds in the unlikely event thal the charity experiences unforeseen financial difficulties. Our perceived risks for the organizalion are oullined in Section 1.5. Our reserve policy is currently based upon 50% of operating costs, which from our fir51 budget/forecast lin Oct 2024) for 2024-25 wos £52k. Our reserves starling that year were £37.5k, and we indicoted that we planned to achieve this figure wilhin Iwo years. We have a surplus of c £8k in 2024-25. making a 15 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS lor Ihe year ended 30 June 2025 reserve of £45.5k lo start Ihe year 2025-26. This includes o free reserve of £40k. Wilh our first budgetlforecast lin Oct 20251 for 2025-26. the reserves figure has potentially increased to £63k for 2025-26. This is a considerable uplift from last year, wilh no change in the risk profile from lasl year. Our operational income and expenditure varies each year in accordance w￿th our programme of classes, workshops. short courses and events - but these ore priced so as to cover their costs. ond make a smoll surplus. and thus do not form part of the underlying financial reserves colculolion. We thus aim to hold £46k in reseNes for 2025-26. This is based on covering our fixed costs of circa £3k per monlh for 12 months. plus a contingency of £1 Ok. Wilh our resulls for 2024-25, we hold a slarting balance to 2025-26 of £45.5k, which is in line with our revised reserves policy. 1.5 RISK MANAGEMENT We have updated the layout of our Risk Register to make it easier lo review and update. Additionol categorisation for 'Likeliho¢xI' and 'lmpoct' of Ihe perceived risk has also been added. Ref Perceived Risk Likelihood Impact Mitigalionlcomments Global Event Ilike o Pandemic) LOW HIGH prepare plans Ibased on experience of Covidl rebuild finance reserves - under woy Reliance on only o few Staff members MEDIUM HIGH 11 Ensure appropriote staff management Obloin limeous staff feedback Improve balonce of Development Worker and Administrotor tasks Ensure we have sufficient trained staff and volunteers to help organise and operate the Charity 16 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 June 2025 Retainingl Recruiting tutor5 MEDIUM HIGH Ensure lutors are well managed Ensure tutor expectotions are understood and met if possible Continue pre-term lulor training event Reducing income andlor reserves MEDIUM HIGH Ensure classes cover lulor and venue costs Find new sources of income eg grants, legacies. new ventures Membership Options LOW MEDIUM Review Membership options (member/ non- member) could reduce the nvmber of closs fee oplions and improve operalions Off ice closes locotion LOW MEDIUM Find a better office locotion- we hove done this before On-line presence refresh LOW LOW Ensure our on-line presence (website. Facebook elcl advert15e SMG classes ond promote SMG effeclively Membership dropping MEDIUM MEDIUM Adverttse more widely. using on-line and Iradilional channels Review student survey feedbock and implement ideas where possible Offer new opportunities- eg Big Folk Band. short courses. workshops Increasing Venue Costs HIGH MEDIUM Negotiate rates with venues Find ollemotive venues Increase class fees. to cover these increoses 10 Short-notice Classroom cancelations LOW MEDIUM Review term dates with venues when booking where p055ible Complionce Legal ond HR aspecls MEDIUM LOW Sign up to oppropriote SCVO optionol services SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 June 2025 Recruit new board members with the5e/other needed ski115 Attend appropriote troining courses Relionce on on- line seNices LOW LOW Costty to use, but enable efficient operation Review and adapt os required. using charity rotes where available Could operate manually if needed 1.6 PLANS FOR THE FUTURE 1.6.I Year 2025-26 During the yeor 2025-26 the directors are continving lo develop and review our business strategies to ensure Ihat our financial position continues to improve. Our new Choir has labled various suggestions for Ihe board to discuss and investigate to expand our offering. broaden our appeal and improve our finances. Our priority is lo return our finonces to the previously heallhy 51ote by keeping a close eye on the costs of our classes and events. ensvring Ihal we break even or make a surplvs on each one. We wll seek advice on developing the business side of our organisation to ensure we have all Ihe resources and expertise we need. We will conlinue to review our sloff and lutor renumeration annually to ensure the smooth running of our organisalion. We will continue to review Ihe level of class fees on a regular basis lo ensure Ihat we are covering our costs and generate some additional surplus lo develop our oclivities. We plan to rationalise our class fee structure lo moke online booking simpler lo manage. Togetherwith Early Bird and Concession rates we have eight different booking levels, which makes administration lasks more complicated than 18 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 June 2025 necessary. Dr Jo Miller {who was commissioned during 2023 to prepare a strategy report for SMGI. suggested that we gradually reduce the number of options. One way of making immediale chonges would be to eliminate Ihe non-member category oltogelher and this is being considered. wilh other additional options. Our Developmenl Worker undertook training in fundraising Ihrough legacy giving in 2024 and we hope lo introduce this method of fundraising lo support SMG during 202&26. We aim to issue a new lune book. which we have been working on. We are working with lutors lo develop some common tunes/sets in our class repertoire, so that music can be more easily shared and performed amongst classes. As both our busking groups have ceased lo exist, we would like to encourage the development of a new busking group - thi5 could link in wilh several of our other aims by hoving a social and community focus. Tutors ore freelance practitioners and have fimiled access to continual professional developmenl ICPDI. SMG has obtained a Tasghad gront which will allow a CPB projecl lo be run in 2025126 giving tutors some options lo enable them to undertake CPD. This will be managed by the Developmenl Worker. We also offer tutors a Tutor Gathering training session before the start of the Autumn Term. to meel other lulors and SMG staff. We will continue to survey our students ond evaluate our offerings through annual questionnaires. bul perhaps also use focus group5 to gain a deeper insight into their views. 11 is clear from Jo Miller's research that students really value the social aspect of playing together, and we will conlinue to develop this aspect of our offering via our Hub during Ihe break in our evening classes. 1.6.2 Longer Term SMG should aim to increose Ihe occuponcy of classes. to increase profitability. Some classes run on Ihe borderline of breok-even. ond o few run at an approved deficil. We could increase the number and range of closses and workshops we offer by expanding the instruments we offer classes in where demand exists. 19 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 June 2025 We will review our efforts oround publicising who we are and what we offer and try to encourage new students from younger age groups. We will consider the possibility of developing sponsorship of our evenls from companies or organisations that are sympathetic lo our aims. There are orgonisations in Edinburgh and beyond with whom we could instigate networking relationships, such as other organisations Ihat teach tradilional music in olher cities or who organise concerts with traditional musicians. SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for Ihe year ended 30 June 2025 1.7 STRUCTURE. GOVERNANCE AND MANAGEMENT 1.7.1 Governing Document SMG ISMGI is a charitable company limited by guarantee, incorporated on 19 March 2004 for the advancement of education for the public benefit by providing an education programme of Scottish traditional music song and donce. The company was established under a Memorandum of Association, which eslablished the objects and powers of the charitable company, and is governed vnder its Article5 of Association. In the event of the company being wound up. members are required to contribute an amount not exceeding £1. 1.7.2 Recrultment and Appo5ntment of Dlrectors Board members are primarily recruiled from amongsl members. vio the AGM ond throughout the year. The Board considers whal vacancies ore likely to arise, the skills and backgrounds required and publicises these in its newsletter. website or via the Edinburgh Volunteer Hub. The Board con co-opt members to fill vacancies and identified skills gaps when required. The Board is onfirmed each year ot the AGM. 1.7.3 Direclors. Induction and Tralning New Board members are formally welcomed and introduced to the olhers at their first Board meeling. It is ensured thal they understand the role of the Board and ils members. and Ihat they have access to the Memorandum and Articles of Association, accounts. business plans and minutes of previous Board meetings. They are given the opportunily lo arrange a visit to the office for short induction sessions with staff. We have used o mix of special Boord events and specific Agenda items to brief new 8oard members and to keep existing Board members up to date. Directors are encouroged to attend any approprtate courses that are available. 1.7.4 Organlsalional Slruclure The Directors are responsible for strategic decision moking of the charity. Day- to-day managemenl of the Charity's business is delegated to the Development Worker. who is assisted by an Administralor. The Development Worker and Administrator are supported by a voluntary Bookkeeper. The 21 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 June 2025 Development Worker attends Board meetings lo report on current octivity and to be advised on how the Board's decisions on strategy should be borne out Ihrough the day-to-day octivity. The Board meets monthly. apart from the summer break when there are no classes running. 1.7.5 Reference and Admlnlslratlve Information Charity Name: Scols Music Group Company Number. SC265190 Chaiity Number: SC032702 Directors holdlng office on l Jvly 2024 or subsequenty appoinledlreslgned Edna Wilson Choir to Feb 2025 Grohom Hutton Appointed 20 June 2025 (Chair from 17 Sep 2025) Paul Mclntosh Treasurer Fiona Harrison Jamie Taylor Bill Savage Helen Wright Corole Ross Charles Everill Caroline Caslle Interim Chair- Feb to Sepl 25 Resigned 4 August 2025 Appointed l April 2025 Appointed l April 2025 Resigned 17 August 2024 Key Management Personnel Sarah Northcott Development Worker from l April 2025 Registered Office and Princlpal Operating Address Office l F6, Eric Liddell Community 15 Morningside Road. Edinburgh EHIO 4 DP Independent Examiner Kevin Caltonach Whitelaw Wells Chartered Accountonls 9 Ainslie Place. Edinburgh EH3 6AT Bank Bank of Scolland. l Ardmillan Terrace. Edinburgh EHI 1 2JN SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS f¢x the year ended 30 June 2025 1.8 DIRECTOR'S RESPONSIBILITIES Company law requires the Board of Directors lo prepare financial stotements for each financial year which give o true and fair view of the state of the company as al the bolance sheet dale and of its incoming resources and application of resources. including income and expenditure for the financial year. In preparing those financial statements. the Directors should follow best practice and: Select suitable accounting policies and Ihen apply them consistenlly Observe the methods and principles in the "Charities Statement of Recommended Practice" Make judgements and eslimales thal are reasonable and prudent state whelherapplicable UK Accounting Standards have been followed Prepare the financial statements on the going concern basis unle55 il is inappropriale to presume thal Ihe company will continue in business. The Directors are responsible for keeping proper accounling records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure Ihat the financial stalemenls comply wilh the Companies Act 2006. They are also responsible for safeguarding Ihe assets of Ihe company and hence for laking reasonable steps for Ihe prevention and delection of fraud ond other I￿egUlarl*1e5. This report has been prepared in accordance with the Slatemenl of Recommended Practice: Accounting and Reporting by Chorities applicable to charities preparing their occovnls in accordance wilh Ihe Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 and in accordonce wilh the special provision of Port 15 of the Companies Act 2006 relating to small entities. Approved by the board on 2 February 2026 and signed on its behalf by: GHU Director ond Chair of the Board 23 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 June 2025 Finance Report 2.1 Independent Examlner's Report I report on the accounls for the year ended 30 June 2025 as set out on pages 26-37. Respective responslbllttles of the Tru￿e•S and Ihe Independent Examlner The charity's Trustees are responsible for the preparalion of Ihe accounts in accordance wth the lerms of the Charities and Truslee Investmenl (Scotlandl Act 2005 and the Charities Accounts (Scollandl Regulations 2006 las amended). The charily's Trvslees consider Ihat the audit requirement of Regulation l 011 I lal to Ic) of the Charities Accounts (Scotlandl Regulalions 2006 las amended) does nol apply. It is my responsibility to examine the accounts as required under section 4411) Icl of the Act and lo state whether particular mallers have come to my ottenlion. Basls of 5ndependent examiner's report My exominalion is carried out in occordonce wfh Regulation 11 of the Chorities Accounts Iscotlondl Regulations 2006 las omendedl. An examination includes a review of the accounting records kepl by the charity and a comparison of the accounts presented wilh those records. 11 also includes consideration of any unusual ilems or disclosures in the accounts. and seeking explanations from the Trustees conceming any such molters. The procedures underlaken do nol provide all the evidence that would be required in an audit, and consequently I do nol express an audit opinion on the view given by the accounls. Independent examiner's statement In the course of my examinotion. no matter hos come to my atlention: which gives me reasonable cause to believe thal in ony material respect the requirements: to keep accounting records in accordance with Section 44 {11 lal of the 2005 Act. Regulalion 4 of Ihe 2006 Account5 Regulotions las amended) and sections 381. 382 and 386 of Ihe Companies Acl 2006,. and lo prepare accounls which accord vrfth the accounting records and comply with Regulation 8 of the 2C()6 Accounls Regulations la5 amended) 24 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 June 2025 have not been mel: or 21 fo which. in my opinion. attenlion should be drown in order lo enable a proper understanding of the accounts to be reached. Kevin Catlanach Chartered Accountanl Whitelaw Wells Chartered AccounlantS 9 Ainslie Place Edinburgh EH3 6AT 2 February 2026 25 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 June 2025 2.2 statement of Financlal Activities for Year Ended 30 June 2025 (Incorporating Income and Expend5ture Accounl) Unrestrirted Restrirted Fund5 Fund5 Totsl Totsl 2025 2024 Income and endowments from Donations and legacies Donations Subscriptions Charitable octivities Grants Classes, events and workshops Other. trading ortivities Ceilidh income Merchandise sales and other incorne Investment income Bank interest 9,193 5,799 9,193 8,660 5.799 6,080 828 828 748 98,463 89,746 98,463 13.065 1.611 13,065 13,409 1,611 1.150 241 241 288 Total incornt 128.372 828 129.200 120.081 Expenditure on Roisingfunds Ceilidh costs Choritoble ortivities 6,240 114.461 6,240 6.699 114.461 122.650 Total Èxpenditure 120.701 120,701 129,349 Net lexpendfture)/income 7.671 828 8,499 19,2681 Transfers between funds 14 Net movement in funds Total funds at l July 2024 14 37.250 37.250 46,518 Total fvnds at 30June 2025 14 44.921 828 45.749 37,250 The company has r#) rKognised ￿lAs0110S$eS otherthan the resultsfor tl* as set out above. All ol the actfv6tyes of the charMable tompany are cts55ed as tofitinuin8. The notes on pages 29 to 37 fom part of these financial statements. 26 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 June 2025 2.3 Balance Sheet at 30 June 2025 20Z5 2024 Note5 Fixed Assets Tangible assets 225 450 Current assets Debtors Cash at bank and in hand 2,225 48,542 2,391 41.618 50,767 44.009 Creditors: amounts falling due within one year 10 15.2431 17.2091 Net current assets 45.524 36.8(KJ Net Assets 13 45.749 37.250 Funds Unrestricted funds Restricted funds 14 14 44.921 828 37,250 Total funds 45,749 37.250 The directors are satisfied that the charitable company is entitled to exemption from the provision5 of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477, and that no member or members have requested an audit pursuant to section 476 of the Act. The directors ocknowledge their responsibility for= ensuring that the charitable company keeps proper attountinB records which comply with sections 386 and 387 of the Act: and {iil preparing financial statement5 which give a true and fair view of the state of affairs of the charitable company as at the end of the financial year and of it5 profit or loss for the financial year in accordance with the requirements of sections 394 and 395, and which otherwise comply with the requirements of the Act relating to financial statements, so far as applicable to the charitable company. 27 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 Jvne 2025 These financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006. Approved by the board on 2 February 2026 and signed on its behalf by: G Hutton Director and Chair of the Board The noies on pa8es 29 to 37 form part of these financial statements. SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS Ihe year ended 30 June 2025 2.4 Notes Formlng Part of the Flnancoal Statements I. ACCOUNfiNG POUCIES Basls of accounting The accounts have been p￿Pared under the historical cost cortventm￿ and are in accordance the Charities and Trustees Investment Iscotlandl Act 2￿5. the Charities Accounts (Scotlandl Regulations 2(￿ las amendedl. the Companies Act 2￿6. the Financial Reporting Standard applicable in the UK and Republic of Ireland IFR51021 (effective l January 20191 and Accounting and Reporting by Charit¢es: Statement of Recommended Pr4rtio applicable to charrtres preparin8 their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of I￿land IFRS1021 leffettive I January 20191. The charity has taken advantage of the exemption from the requirement to prepare a Statement of Cash Flovts as permitted under FRS 102 and the Charities FRS 102 SORP. The charity constitutes a public benefit entity as defined by FRS 102. The directors consider that there are no mèterial uncertsinties about the ability of the charity to continue as a going concern for the foreseeable future. Accordingly. the accounts have been prepared on a going concern basis. This going concern assessment covers a period of at least 12 months from the date of signing of these financial statement5. Income Income is recognised in the Slatement of Financial Artivities when the Charity ha5 entitlement, there is probability of receipt and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income: Donations and subscriptions are included in full in the Statement of Financial Artivities when receivable. Grants, where entitlement is not conditional on delivery of a specific perfomiance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. Where entitlement is conditional on delivery of a specific performance by the charity, grants are accounted for as the charity earns the right to consideration by its performante. Income from other charitable activities t5 included when the charity has earned the right to the income. Income from merchandlse 15 recognlsed at the polnt of sale and income from fundralslng events is recognised when the event tèke5 place. Investment income is included when receivable. 29 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 June 2025 I. ACCOUNTING POLiaES (continuedj ExpendI￿re All expenditure 15 included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure. The charitable company ts not registered for VAT and, accordingly, resources expended a￿ shown gross of irrecoverable VAT. Expenditure on raising funds comprises those costs directly associated with merchandise sales and fundraising events. Charitable expenditure comprises those costs inturred by the tharity in the delivery of tts activities and services for its beneficiaries. Governance costs include those c05t5 associated with meeting the Constitutional and statutory requirements of the charity and include independent examination fee5 and costs linked to the strategic management of the charity. All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, while support costs are allocated 40% to Teaching & Events, 60% to Promotion of Culture & Community. Flxed Assets Tangible fixed assets are initially recorded at cost. The charity has the policy not to capitalise items under £250. Depreciation is provided at rates calculated to write off the cost of fixed assets. less their estimated residual value. over their expected useful lives on the following basis= Office Equipment Website 4 years Stra*ht line 3 years straight line Funds Unrestricted funds are donations and other income generated for the objects of the charity without further specified purpose and are available as general funds. Restricted fund5 are subject to the restrictions on their expenditure imposed by the donor. Operatlng lease rentals Rentals applicable to operatin8 leases. vthere substantially all of the benefits and risks of ownership remain with the lessor. are charged. to the Statement of Financial Activities on straight-line basis over the period of the lease. Pen5ion5 The charityoperates a defined tontribution pension scheme. Contributions payable to the scheme are charged to Slaternent of Financial Activities in the period to whbch they relate. SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 June 2025 I. ACCOUNTING pouaES (contlnuedj Provislons Provisions a￿ recognised when the charity ha5 a present obligation as a result of a past event, it is probable that a transfer of economic benefit will be required to settle the obligations and a reliable estimate can be made of the amount of the obligatK)n. Crltlcal accounting e5timate5 and judgements In the application of the Charitys accounting p)licies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readilv apparent from other sources. The estimates and associated assumptions are based on historical experience and other fattofs that are considered to be relevant. Actual results may differ from these estimates. The estirnates and underlying assumptions are rev￿We￿ on an ongoing basis. Revisions to accountirvd estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the wision and futu￿ peri¢yls where the revisK>n affects both current and future periods. NETIEXPENDITUREJ/INCOME FOR THE YEAR Total 2025 Total 2024 This is stated after chargin8-_ Independent Examinerfs fees Depreciation Operating lease rentals= land and buildings 2.940 225 2.202 2.640 388 2,058 GRANTS RECEIVED Unrestritted Restrlcted Funds Funds Total Total 2025 2024 Creative Scotland 828 828 748 828 828 748 Included in income a￿ restricted grants of £828 12024= £7481 and restricted donations of £nil 12024.. £nil)- All other income was unrestricted in tjoth the curfent and previous years. 31 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 Jvne 2025 SUMMAR Y ANAL YSIS OFEXPENDITUREAND RELATED IP4COMEFORACTIVITIES This table shows the cost of the main activities and the sources of income that 5UPPOrt those activities. Pn>motion of Culture & Community TeachinE & Events Total Total 2025 2024 Tasgadh Costs (note 5} (38.3351 182,3661 1120,70111129.3491 Donations and subscriptions Income from charitable activities Other trading activities Investment income 14.992 14.992 14,740 99.291 90,494 14,676 14.559 241 288 828 98.463 14.676 241 828 {23.102} 30,773 8,499 19.2681 32 SCOTS MUSIC GROUP REPORT AND FINANCIAL STATEMENTS for the year ended 30 June 2025 5. TOTAL EXPENDITURE Promotion of Culture & Teachlng Ta4adh Communlty & Events. Total 2025 Totsl 2024 Costs directly allocate