Young Musicians Hebrides - Charities report - 21.1
Young Musicians Hebrides - Charities report - 21.1
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
| REPORT OF THE TRUSTEES AND |
| UNAUDITED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 JULY 2020 |
FOR |
| YOUNG MUSICIANS HEBRIDES |
YOUNG MUSICIANS HEBRIDES |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2020 |
Page |
Report of the Trustees | 1 | to | 4 |
Independent Examiner's Report | 5 |
Statement of Financial Activities | 6 |
Balance Sheet | 7 |
Notes to the Financial Statements | 8 | to | 12 |
YOUNG MUSICIANS HEBRIDES (REGISTERED NUMBER: SC280365) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 JULY 2020 |
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 July 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). |
OBJECTIVES AND ACTIVITIES |
Objectives and aims |
| The key aim of Young Musicians Hebrides - to provide opportunities for people to make music together - remains central to all activities. The Breasclete outreach centre has 10 committed students, one of whom needs additional support for learning, and they are often invited to contribute music at community events. Demand for tuition is steady in Stornoway. |
| The Board wishes to thank the tutors for their response through the Covid-19 lockdown by switching to online tuition. The Board recognises their substantial effort and investment of time to learn new approaches and to be cheerful in the face of these challenges. The Board is also grateful to families for encouraging and supporting their children to continue with lessons, thereby sustaining YMH in challenging circumstances. |
| YMH offers external accreditation for students through London College of Music, who provide an examiner if enough candidates are presented. YMH has approached the Comhairle to present candidates, which would help to share the cost of an examiner's visit, and consultation is on-going. Helpfully, LCM switched to online exams due to Covid-19 and it is hoped this system will be retained. YMH is the only provider of opportunities for accreditation in traditional music through London College of Music and this has attracted interest from community tutors. We look forward to working more closely with them to bring students to play together, in addition to taking part in exams. |
ACHIEVEMENT AND PERFORMANCE |
Charitable activities |
| Group music-making is a key aim and we strive to provide access to as wide a variety of music activities at as low a cost as is affordable for participants and the organisation. Our staple 'access' activity was Music for Families, but parents and carers were finding it increasingly difficult to afford transport to our centre, and numbers were not sustainable. The local Arts Centre, An Lanntair, instigated a project for families, free to participate, and contracted YMH to deliver part of its programme. They helpfully purchased YMH materials and equipment when we vacated our premises. It is unlikely that this aspect of our charitable work will be revived. |
| YMH is committed to providing access to high quality, affordable, music tuition and training; beginner lessons are 20 mins to keep start-up fees as low as possible, beginner instruments are loaned for free, and fees can be spread over the year to help spread the costs. Books are loaned to learners to enable them to have access to a wider repertoire, saving families the cost of buying books that may only be used for a short period. Students with additional learning support needs receive 50% discount on tuition. Tuition in Outreach Centres is offered at the same rate as in Stornoway but there is currently no separate external financial support to cover tutor travel costs for this. The Board is grateful to the Breasclete Community Association for offering free teaching space to offset costs. Groups of students performed at events for older members of the community. |
Internal and external factors |
The charity is partially dependent upon the continuing support of public funding agencies to assist in the ongoing delivery of the aims and objectives of the organisation. |
YOUNG MUSICIANS HEBRIDES (REGISTERED NUMBER: SC280365) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 JULY 2020 |
FINANCIAL REVIEW |
Principal funding sources |
| Currently, most of the income is from paid teaching or training activities, and the organisation has not been robust enough to apply for charitable funding. However, achieving financial stability along with being able to project a surplus, puts the organisation on a new footing. Covid-19 recovery is likely to open opportunities for projects to support children's health and wellbeing which is at the core of our charitable purposes. |
| The organisation receives in-kind support; volunteer management and tuition support, and free teaching accommodation in Breasclete Community Hall. Young Musicians Hebrides is grateful to the Lewis Pipe Band for waiving the rent for the duration of online tuition. This has enabled the organisation to allow longer times for lessons to take account of time for connection etc. This also enabled YMH to offer a refund or deferred fees to families who did not want online tuition. The Board will explore using the rent savings as match funding for post-Covid initiatives. |
| As the organisation has contracted, excess instruments and equipment have been sold but there was limited demand locally after the studio closed and there is still a challenge to deal with unsold equipment. Other youth music organisations have been approached but the remaining stock will now be retained for the new groups and projects. |
Reserves policy |
| During the year the charity's income exceeded expenditure resulting in net income of £4,379 for the period (2019 - net income of £2,898). Unrestricted reserves has as a result increased to a net surplus of £1,341. |
| The Board is pleased to note the improved financial position and the projection that a small surplus is projected for the next financial year. The Board will decide on a suitable level of reserves and a fund to invest in replacement of equipment when needs arise. It is likely that an IT upgrade will be required and that one of the teaching pianos should be upgraded. Lack of reserves and failure to recover fees timeously have led to financial insecurity which has constrained the scope of the organisation's activities, particularly in outreach, but the financial outlook in 2020 is encouraging. Achieving financial stability along with being able to project a surplus, puts the organisation on a new footing. |
| Staffing costs |
| The cost of Statutory Maternity Pay for M Rowlands in the current financial year must be met from revenue and can be reclaimed in the next financial year. This will result in utilising the overdraft for a number of months in Spring 2021. |
FUTURE PLANS |
The organisation is meeting demand for tuition and but opportunities for growth in lessons are limited by the availability of tutors. There is a need for mixed ensembles and there are plans to work with other music tutors to develop these in Lewis and Harris and plans were in development for a group music-making initiative to support this as it fits with Young Musicians Hebrides founding principles. It was intended to be a spring-summer-autumn activity, but this has had to be postponed due to Covid-19. Opportunities for working with the local arts centre, Gaelic language organisations, and children's services continue to be explored. Suitable activity space can be rented at the Pipe Band premises. |
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. |
The trust is a charitable company limited by guarantee, incorporated on 22 February 2005. The company was established under a Memorandum of Association which established the objects and 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. |
Organisational structure |
| The board consists of voluntary directors who manage the affairs of the charity through regular board meetings. The charity has reviewed its internal operational structure to assist in the effective management of the organisation. The board members are heavily involved in the day to day operations of the charity. |
YOUNG MUSICIANS HEBRIDES (REGISTERED NUMBER: SC280365) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 JULY 2020 |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Risk management |
| The trustees have a duty to identify and review the risks to which the charity is exposed and, to that end they are concerned to ensure the sustainable development of the organisation. The Trustees are satisfied that appropriate internal controls are in place to provide reasonable assurance against fraud and error. The organisation has faced considerable challenges in recent years with no paid manager, but two initiatives have enabled the organisation to recover from several difficult years by improving cash flow management and reducing costs; these are improving cash flow and reducing costs by giving up office accommodation. In addition, the financial year end was changed from 31st January to 31st July, so that fees due for each teaching year fall clearly withing the financial year, so make accounting clearer. |
| Ms M Rowlands (piano tutor) was engaged and trained in 2018 to monitor invoicing and payments due to a grant received from Hebridean Housing Partnership; through her work, income streams have regularised, and the organisation is no longer dependent on its overdraft. Giving up the office and studio, to rent tuition and rehearsal space in the Lewis Pipe Band premises, has enabled annual savings of more than £2500. This improved financial outlook means that the organisation can apply for funding to manage small projects. Tuition fees will be kept at the same level, given the current circumstances with Covid-19. |
| Staffing |
| The Board offers congratulations to Ms Rowlands on the birth of Melody Grace on the 12th of June 2020, and thanks to Christine Richings and Jane Gray for covering lessons in June to complete the year for Ms Rowlands' students. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
Registered office |
Trustees |
Company Secretary |
Independent Examiner |
Calum Macdonald |
Chartered Accountant/ICAS |
CIB Services |
Chartered Accountants |
63 Kenneth Street |
Stornoway |
Isle of Lewis |
Western Isles |
HS1 2DS |
Bankers |
Stornoway |
Isle of Lewis |
HS1 2DE |
YOUNG MUSICIANS HEBRIDES (REGISTERED NUMBER: SC280365) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 JULY 2020 |
Approved by order of the board of trustees on |
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF |
YOUNG MUSICIANS HEBRIDES |
I report on the accounts for the year ended 31 July 2020 set out on pages six to twelve. |
The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The charity's trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under Section 44(1)(c) of the Act and to state whether particular matters have come to my attention. |
Basis of the independent examiner's report |
My examination was carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts. |
Independent examiner's statement |
In connection with my examination, no matter has come to my attention : |
(1) | which gives me reasonable cause to believe that, in any material respect, the requirements |
- | to keep accounting records in accordance with Section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and |
- | to prepare accounts which accord with the accounting records and to comply with Regulation 8 of the 2006 Accounts Regulations |
have not been met; or |
(2) | to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. |
Calum Macdonald |
Chartered Accountant/ICAS |
CIB Services |
Chartered Accountants |
63 Kenneth Street |
Stornoway |
Isle of Lewis |
Western Isles |
HS1 2DS |
20 April 2021 |
YOUNG MUSICIANS HEBRIDES |
STATEMENT OF FINANCIAL ACTIVITIES |
FOR THE YEAR ENDED 31 JULY 2020 |
Period |
1.2.18 |
Year Ended | to |
31.7.20 | 31.7.19 |
Unrestricted | Restricted | Total | Total |
fund | fund | funds | funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Charitable activities |
|
Investment income | 2 |
Total |
EXPENDITURE ON |
Charitable activities |
|
NET INCOME |
RECONCILIATION OF FUNDS |
Total funds brought forward | ( | ) | ( | ) | ( | ) |
TOTAL FUNDS CARRIED FORWARD | (3,038 | ) |
YOUNG MUSICIANS HEBRIDES (REGISTERED NUMBER: SC280365) |
BALANCE SHEET |
31 JULY 2020 |
31.7.20 | 31.7.19 |
Unrestricted | Restricted | Total | Total |
fund | fund | funds | funds |
Notes | £ | £ | £ | £ |
CURRENT ASSETS |
Debtors | 7 |
CREDITORS |
Amounts falling due within one year | 8 | ( | ) | ( | ) | ( | ) |
NET CURRENT ASSETS/(LIABILITIES) | ( | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES | ( | ) |
NET ASSETS/(LIABILITIES) | ( | ) |
FUNDS | 10 |
Unrestricted funds | 1,341 | (3,038 | ) |
TOTAL FUNDS | (3,038 | ) |
| The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2020. |
| The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2020 in accordance with Section 476 of the Companies Act 2006. |
| The trustees acknowledge their responsibilities for |
| (a) | ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and |
| (b) | preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. |
These financial statements have been prepared in accordance with the provisions applicable to small charitable companies subject to the small companies regime. |
The financial statements were approved by the Board of Trustees and authorised for issue on |
YOUNG MUSICIANS HEBRIDES |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2020 |
1. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The financial statements are prepared in sterling which is the functional currency of the charity. |
All amounts are rounded to the nearest £. |
The directors consider that there are no material uncertainties about the company's ability to continue as a going concern. The directors also consider that there are no significant areas of judgements, estimates or key assumptions that affect items in the accounts. |
Income |
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. |
Expenditure |
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. |
Tangible fixed assets |
| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Plant and machinery | - |
Computer equipment | - |
Taxation |
| The charity is exempt from corporation tax on its charitable activities. |
Fund accounting |
| Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. |
| Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. |
| Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. |
YOUNG MUSICIANS HEBRIDES |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2020 |
2. | INVESTMENT INCOME |
Period |
1.2.18 |
Year Ended | to |
31.7.20 | 31.7.19 |
£ | £ |
Deposit account interest |
3. | TRUSTEES' REMUNERATION AND BENEFITS |
| There were no trustees' remuneration or other benefits for the year ended 31 July 2020 nor for the period ended 31 July 2019. |
Trustees' expenses |
| There were no trustees' expenses paid for the year ended 31 July 2020 nor for the period ended 31 July 2019. |
4. | STAFF COSTS |
The average monthly number of employees during the year was as follows: |
Period |
1.2.18 |
Year Ended | to |
31.7.20 | 31.7.19 |
Charitable activities |
5. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
fund | fund | funds |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Charitable activities |
Musical education and training |
Total |
EXPENDITURE ON |
Charitable activities |
Musical education and training |
NET INCOME |
YOUNG MUSICIANS HEBRIDES |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2020 |
5. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued |
Unrestricted | Restricted | Total |
fund | fund | funds |
£ | £ | £ |
RECONCILIATION OF FUNDS |
Total funds brought forward | (5,936 | ) | - | ( | ) |
TOTAL FUNDS CARRIED FORWARD | (3,038 | ) | - | (3,038 | ) |
6. | TANGIBLE FIXED ASSETS |
Plant and | Computer |
machinery | equipment | Totals |
£ | £ | £ |
COST |
At 1 August 2019 and 31 July 2020 |
DEPRECIATION |
At 1 August 2019 and 31 July 2020 |
NET BOOK VALUE |
At 31 July 2020 |
At 31 July 2019 |
7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.7.20 | 31.7.19 |
£ | £ |
Trade debtors |
Other debtors |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.7.20 | 31.7.19 |
£ | £ |
Bank loans and overdrafts (see note 9) |
Social security and other taxes |
Other creditors |
Accrued expenses |
YOUNG MUSICIANS HEBRIDES |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2020 |
9. | LOANS |
An analysis of the maturity of loans is given below: |
31.7.20 | 31.7.19 |
£ | £ |
Amounts falling due within one year on demand: |
Bank overdrafts |
10. | MOVEMENT IN FUNDS |
Net |
movement | At |
At 1.8.19 | in funds | 31.7.20 |
£ | £ | £ |
Unrestricted funds |
General fund | (3,038 | ) | 4,379 | 1,341 |
TOTAL FUNDS | ( | ) | 4,379 | 1,341 |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 31,070 | (26,691 | ) | 4,379 |
TOTAL FUNDS | ( | ) | 4,379 |
Comparatives for movement in funds |
Net |
movement | At |
At 1.2.18 | in funds | 31.7.19 |
£ | £ | £ |
Unrestricted funds |
General fund | (5,936 | ) | 2,898 | (3,038 | ) |
TOTAL FUNDS | (5,936 | ) | 2,898 | (3,038 | ) |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 43,930 | (41,032 | ) | 2,898 |
TOTAL FUNDS | 43,930 | (41,032 | ) | 2,898 |
YOUNG MUSICIANS HEBRIDES |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2020 |
11. | RELATED PARTY DISCLOSURES |
There were no related party transactions for the year ended 31 July 2020. |