Young Musicians Hebrides - Charities report - 18.1
Young Musicians Hebrides - Charities report - 18.1
| REGISTERED COMPANY NUMBER: |
| REGISTERED CHARITY NUMBER: |
| REPORT OF THE TRUSTEES AND |
| UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED |
| 31 JANUARY 2018 |
| FOR |
| YOUNG MUSICIANS HEBRIDES |
| YOUNG MUSICIANS HEBRIDES |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 JANUARY 2018 |
| Page |
| Report of the Trustees | 1 to 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 |
| Notes to the Financial Statements | 7 to 10 |
| YOUNG MUSICIANS HEBRIDES |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 JANUARY 2018 |
| 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 January 2018. 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 2015). |
| 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 is active and demand for tuition is growing in Stornoway with the |
| recruitment of a new piano and guitar tutor. YMH is committed to providing access to high quality, affordable, music |
| tuition and training, including instrument hire and is pleased to welcome Miriam Rowlands to provide piano and guitar |
| tuition. Miriam was a fellow student with Lewis at YMH before leaving to gain her degree through Stevenson College, |
| Edinburgh and Edinburgh Napier University. |
| YMH offers external accreditation for students through London College of Music, who provide an examiner if a sufficient |
| number of candidates are presented. Music teachers at the Nicolson Institute have been approached informally to |
| participate in LCM exams but they have not responded. More candidates would defray costs which are currently covered |
| entirely by LCM, but this is unlikely to continue. YMH aims to offer two days of examinations every 18 months. |
| 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. Music for families introduces parents to songs and rhymes they can |
| learn to engage their babies and toddlers in music. This is a drop-in service so that families do not have to pay on the |
| occasions they cannot come. However, it is becoming apparent that families are less able to afford £4.00 every week so |
| the format and costs will be reviewed. Christine Richings continues to play a key role in An Lanntair's pre-school |
| programme, with an average of three events a year, and we are grateful to An Lanntair for offering us the gallery free of |
| charge to hold a community concert at Christmas. |
| The organisation offers tuition to include children with additional learning or emotional support needs in mixed ability |
| groups, and families of eligible children may apply to the Fair Play Fund for 50% discount on fees for instrumental lessons |
| and instrument hire. YMH was delighted to receive £1000 from Hebridean Housing Partnership, raised by staff |
| fund-raising. The money will support the Fair Play fund and opportunities to work with vulnerable children will be |
| explored with Action for Children. The money can also be used to offer our pre-school programme more widely. The |
| Board is encouraged to receive support from the community and thanks Hebridean Housing Partnership for its support. |
| 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. Ensemble music-making continues to be a challenge for students from rural areas but |
| more group piano tuition was developed so that children experience the social benefits of group participation. |
| The studio has been a key charitable activity, promoting inclusion by offering rehearsal facilities at a not-for-profit level |
| but it has not been possible to find another manager since Lewis Saunders departed in September 2017. The original aim |
| was to provide a safe space for teenage bands but this is now provided by Pointers Youth Café. Demand for rehearsal |
| space has fallen so the studio will close and the organisation can downsize. YMH enjoyed hosting the bands and the |
| community benefited from their concerts to raise funds for charities such as Bethesda and the Macmillan Nurses |
| 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 |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 JANUARY 2018 |
| FINANCIAL REVIEW |
| Principal funding sources |
| Young Musicians Hebrides raises more than 50% income from non-grant funded sources, and can be considered to be a |
| Social Enterprise. Most of the income is from paid teaching or training activities, which covers tutors' salaries and |
| maintain the studio in Bells Road. The organisation also receives in-kind support; for example, charitable rates relief and |
| free teaching accommodation in Breasclete. |
| As the organisation has contracted, attempts have been made to sell off excess instruments and equipment, but there is |
| no demand locally so it is becoming an urgent challenge to deal with equipment to downsize as the studio closes. |
| Late fee payments have had a negative impact on the overall financial picture; fees used to be settled over the summer |
| holidays but the financial year ends mid-term of the academic year so it is less straightforward to assess money owed at |
| that point. Tuition fees had been kept at the same level for three years but they were raised by an average of 50p (4%) |
| in August. |
| Reserves policy |
| The Board keeps the level of reserves under constant review, and has concluded that the current level is insufficient for |
| delivering the organisation's core functions or for future growth and development. The organisation maintains |
| equilibrium but admits it is not making progress in this area. |
| The staff have worked hard to reduce running costs and eliminate debts, but maintaining cash flow depends on steady |
| fee income. Standing order arrangements make lessons more affordable but they need to be checked regularly. The |
| Board and staff will review strategies and record keeping to address late and missed payments. |
| FUTURE PLANS |
| The Board is committed to meeting demand for tuition and requests for more children's activities in Outreach centres but |
| opportunities for growth are limited by current staffing levels. Early Years and family music sessions will continue to be |
| developed because there is no other local provider. Young bands can use facilities provided free by local youth services. |
| Opportunities for working with arts organisations, Gaelic language organisations, and children's services continue to be |
| explored. |
| However, lack of resources for fund-raising, development, review and evaluation mean that much future planning is done |
| on a voluntary basis. The Board recognises that the staff carry out much of the administration and development on a |
| voluntary basis and will keep this under review. The Chief Executive now works full-time elsewhere and carries out this |
| role in a voluntary capacity. There are quarterly reports to the Vice-chair, and income/expenditure records are up-dated |
| monthly; bookkeeping is carried out by one of the tutors on an hourly paid basis. |
| The Board considers that the current premises are too large and expensive to run; alternatives are under consideration to |
| save on running costs and to address the bank overdraft. An opportunity to rent teaching space from the Lewis Pipe |
| Band is being explored. It is expected that the finances will benefit by saving utilities costs, the hall hire cost may exceed |
| rental costs for the current 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 |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 JANUARY 2018 |
| 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. While the board and management work together |
| to identify needs and opportunities for music tuition, and to find the most suitable funding support, options are limited as |
| families face continuing economic challenges. The number of late fee payments has risen and this causes a drain on |
| limited administrative capacity; the task of checking payments is time-consuming and there is not sufficient income to |
| pay staff to carry it out; the board is grateful for the voluntary administration efforts of the music tutors and expresses its |
| thanks to Margaret Nicolson, a parent volunteer, for maintaining the membership database. The Trustees are satisfied |
| that appropriate internal controls are in place to provide reasonable assurance against fraud and error. |
| The organisation keeps finances under constant review, with the emphasis on cost control. The hire of the studio for |
| band rehearsals generated a steadily growing income, with little increase in utilities costs, but it is only viable with |
| volunteer management. YMH is grateful to Lewis Saunders, guitar tutor for volunteering his time and effort to prepare |
| the studio for bands and to supervise studio hire. He left to pursue his music studies on the mainland and the Board |
| wishes him well. |
| REFERENCE AND ADMINISTRATIVE DETAILS |
| Registered Company number |
| Registered Charity number |
| Registered office |
| Trustees |
| Chair |
| Vice chair |
| Company Secretary |
| Independent examiner |
| Calum Macdonald |
| Chartered Accountant/ICAS |
| CIB Services |
| 63 Kenneth Street |
| Stornoway |
| Isle of Lewis |
| Western Isles |
| HS1 2DS |
| Bankers |
| Stornoway |
| Isle of Lewis |
| HS1 2DE |
| 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 January 2018 set out on pages five to ten. |
| Respective responsibilities of trustees and examiner |
| 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 |
| 29 October 2018 |
| YOUNG MUSICIANS HEBRIDES |
| STATEMENT OF FINANCIAL ACTIVITIES |
| FOR THE YEAR ENDED 31 JANUARY 2018 |
| 31.1.18 | 31.1.17 |
| Unrestricted fund |
Restricted fund |
Total funds |
Total funds |
| Notes | £ | £ | £ | £ |
| INCOME AND ENDOWMENTS FROM |
| Donations and legacies |
| Charitable activities |
| Other trading activities | 2 |
| Other income |
| Total |
| EXPENDITURE ON |
| Charitable activities |
| NET INCOME/(EXPENDITURE) | ( |
) |
| RECONCILIATION OF FUNDS |
| Total funds brought forward | ( |
) | ( |
) | ( |
) |
| TOTAL FUNDS CARRIED FORWARD | ( |
) | ( |
) | (8,688 | ) |
| YOUNG MUSICIANS HEBRIDES |
| BALANCE SHEET |
| AT 31 JANUARY 2018 |
| 31.1.18 | 31.1.17 |
| Unrestricted fund |
Restricted fund |
Total funds |
Total funds |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 7 |
| CURRENT ASSETS |
| Debtors | 8 |
| CREDITORS |
| Amounts falling due within one year | 9 | ( |
) | ( |
) | ( |
) |
| NET CURRENT ASSETS/(LIABILITIES) | ( |
) | ( |
) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES | ( |
) | ( |
) | ( |
) |
| CREDITORS |
| Amounts falling due after more than one year | 10 | ( |
) |
| NET ASSETS/(LIABILITIES) | ( |
) | ( |
) | ( |
) |
| FUNDS | 12 |
| Unrestricted funds | (5,936 | ) | (8,688 | ) |
| TOTAL FUNDS | ( |
) | (8,688 | ) |
| The charitable company is entitled to exemption from audit under |
| Section 477 of the Companies Act 2006 for the year ended 31 January 2018. |
| The members have not required the company to obtain an audit of its financial statements for the year ended |
| 31 January 2018 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 special provisions of Part 15 of the Companies Act |
| 2006 relating to charitable small companies. |
| The financial statements were approved by the Board of Trustees on |
| YOUNG MUSICIANS HEBRIDES |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 JANUARY 2018 |
| 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 2015)', 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. |
| 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. |
| Hire purchase and leasing commitments |
| Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis |
| over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable |
| company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. |
| 2. | OTHER TRADING ACTIVITIES |
| 31.1.18 | 31.1.17 |
| £ | £ |
| Other income |
| YOUNG MUSICIANS HEBRIDES |
| NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
| FOR THE YEAR ENDED 31 JANUARY 2018 |
| 3. | NET INCOME/(EXPENDITURE) |
| Net income/(expenditure) is stated after charging/(crediting): |
| 31.1.18 | 31.1.17 |
| £ | £ |
| Depreciation - owned assets |
| Other operating leases | 400 | 533 |
| 4. | TRUSTEES' REMUNERATION AND BENEFITS |
| There were no trustees' remuneration or other benefits for the year ended 31 January 2018 nor for the year |
| ended 31 January 2017. |
| Trustees' expenses |
| There were no trustees' expenses paid for the year ended 31 January 2018 nor for the year ended |
| 31 January 2017. |
| 5. | STAFF COSTS |
| The average monthly number of employees during the year was as follows: |
| 31.1.18 | 31.1.17 |
| Charitable activities | 3 | 3 |
| No employees received emoluments in excess of £60,000. |
| 6. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
| Unrestricted fund |
Restricted fund |
Total funds |
| £ | £ | £ |
| INCOME AND ENDOWMENTS FROM |
| Charitable activities |
| Other trading activities |
| Total |
| EXPENDITURE ON |
| Charitable activities |
| Total |
| NET INCOME/(EXPENDITURE) | ( |
) | ( |
) |
| RECONCILIATION OF FUNDS |
| Total funds brought forward | (8,621 | ) | - | (8,621 | ) |
| TOTAL FUNDS CARRIED FORWARD | (8,688 | ) | - | (8,688 | ) |
| YOUNG MUSICIANS HEBRIDES |
| NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
| FOR THE YEAR ENDED 31 JANUARY 2018 |
| 7. | TANGIBLE FIXED ASSETS |
| Plant and machinery |
Computer equipment |
Totals |
| £ | £ | £ |
| COST |
| At 1 February 2017 and 31 January 2018 |
| DEPRECIATION |
| At 1 February 2017 |
| Charge for year |
| At 31 January 2018 |
| NET BOOK VALUE |
| At 31 January 2018 |
| At 31 January 2017 |
| 8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31.1.18 | 31.1.17 |
| £ | £ |
| Trade debtors |
| Prepayments |
| 9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31.1.18 | 31.1.17 |
| £ | £ |
| Bank loans and overdrafts (see note 11) |
| Other creditors |
| Accrued expenses |
| 10. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 31.1.18 | 31.1.17 |
| £ | £ |
| Social security and other taxes |
| 11. | LOANS |
| An analysis of the maturity of loans is given below: |
| 31.1.18 | 31.1.17 |
| £ | £ |
| Amounts falling due within one year on demand: |
| Bank overdraft |
| YOUNG MUSICIANS HEBRIDES |
| NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
| FOR THE YEAR ENDED 31 JANUARY 2018 |
| 12. | MOVEMENT IN FUNDS |
At 1.2.17 |
Net movement in funds |
At 31.1.18 |
| £ | £ | £ |
| Unrestricted funds |
| General fund | (8,688 | ) | 2,752 | (5,936 | ) |
| TOTAL FUNDS | ( |
) | 2,752 | (5,936 | ) |
| Net movement in funds, included in the above are as follows: |
| Incoming resources |
Resources expended |
Movement in funds |
| £ | £ | £ |
| Unrestricted funds |
| General fund | 33,252 | (30,500 | ) | 2,752 |
| TOTAL FUNDS | ( |
) | 2,752 |
| Comparatives for movement in funds |
At 1.2.16 |
Net movement in funds |
At 31.1.17 |
| £ | £ | £ |
| Unrestricted Funds |
| General fund | (8,621 | ) | (67 | ) | (8,688 | ) |
| TOTAL FUNDS | (8,621 | ) | (67 | ) | (8,688 | ) |
| Comparative net movement in funds, included in the above are as follows: |
| Incoming resources |
Resources expended |
Movement in funds |
| £ | £ | £ |
| Unrestricted funds |
| General fund | 33,665 | (33,732 | ) | (67 | ) |
| TOTAL FUNDS | 33,665 | (33,732 | ) | (67 | ) |
| 13. | RELATED PARTY DISCLOSURES |
| There were no related party transactions for the year ended 31 January 2018. |