REGISTERED COMPANY NUMBER: SC280365 (Scotland) |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2023 |
FOR |
YOUNG MUSICIANS HEBRIDES |
REGISTERED COMPANY NUMBER: SC280365 (Scotland) |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2023 |
FOR |
YOUNG MUSICIANS HEBRIDES |
YOUNG MUSICIANS HEBRIDES |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2023 |
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 | 14 |
YOUNG MUSICIANS HEBRIDES (REGISTERED NUMBER: SC280365) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 JULY 2023 |
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 2023. 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, but the organisation is short of suitable staff to initiate group playing post pandemic. Plans have been discussed but the cost of travel for an additional activity seems unrealistic for families. In-person teaching was provided in Stornoway and Breasclete, and online lessons were still available if that was more accessible for students. One student was taught from abroad, and the Board welcomes this opportunity to recruit students. |
Online exams were offered again through London College of Music, and these have been somewhat successful, but not as satisfactory an experience for students, and not the same feedback for tutors; the online option will be kept under review. Installing broadband at the Pipe band hut was an extra expense, which made the online exams possible, but it is an expense that will need to be monitored. |
ACHIEVEMENT AND PERFORMANCE |
Charitable activities |
Group music-making is a key aim for the organisation, but no group activities or performances have been undertaken. YMH is committed to providing access to high quality, affordable, music tuition and training; charitable aims are achieved by offering beginner lessons of 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 (by Standing Order) 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 the Breasclete Outreach Centres is offered at the same rate as in Stornoway. There is a possibility of recruiting two new tutors and offering tuition in new areas. |
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. |
FINANCIAL REVIEW |
Principal funding sources |
Currently, all income is from paid teaching and there is no demand for YMH to provide workshops or training. The opportunity for projects to support children's health and wellbeing through music, which is at the core of our charitable purposes, remains an aim in the post Covid period and the trustees will apply to local charitable providers. |
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 and will be offered in partnership for new groups and projects, if the opportunity arises. Some instruments are on loan to tutors not employed by YMH, in the hope of establishing joint projects. |
YOUNG MUSICIANS HEBRIDES (REGISTERED NUMBER: SC280365) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 JULY 2023 |
FINANCIAL REVIEW |
Reserves policy |
During the year the charity's expenditure exceeded income resulting in net expenditure of £1,032 for the period (2022 - net expenditure of £4,629). Unrestricted reserves has as a result decreased to a net deficit of £3,073. |
The Board is disappointed that the financial position has deteriorated, and late/unpaid fees is a worsening problem. The Board approached Point and Sandwick Trust for support to investigate development options, and a review is to be carried out in August 2023. Potential savings in rent and insurance have been identified and will be implemented in the next financial year. |
The organisation is not able to build reserves, or to grow the number of participants during a further maternity cover. Late payments have been difficult to control, but tutors keep accurate attendance records to demonstrate that lessons have been delivered. Standing order arrangements are available, or payments over four terms, and families are offered opportunities to spread the cost of catching up on missed payments to ease financial strain and keep students in lessons. |
Staffing costs |
Wages have exceeded tuition income and the management of replacement tutors during maternity leave has added costs. Some of the Statutory Maternity Pay was applied for in advance and some remains to be recovered. Tax and NI are up to date. |
FUTURE PLANS |
The organisation is meeting demand for tuition but opportunities for growth in lessons are limited by the availability of tutors. There is a need for mixed ensembles and plans to work with Ms Carole Miller (cover tutor) to develop these in Lewis and Harris have been discussed. Suitable activity space can be rented at the Pipe Band premises. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
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. |
Recruitment and appointment of new trustees |
The directors of the company are also charity trustees for the purposes of charity law. Under the requirements of the Memorandum and Articles of Association the directors are appointed at the Annual General Meeting. One third of the directors must retire by rotation at each Annual General Meeting but are eligible for re-election. |
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. |
Induction and training of new trustees |
The charity undertakes training for trustees to ensure awareness and understanding of:- |
- the responsibilities of directors; |
- the organisational structure of the charity; |
- the financial position of the charity; and |
- the future plans and objectives of the charity. |
YOUNG MUSICIANS HEBRIDES (REGISTERED NUMBER: SC280365) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 JULY 2023 |
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 congratulates tutors for adapting to online learning from home, continuing lessons during Covid, and participants have been very supportive in continuing lessons. |
Tuition fees were kept at the same level, given the financial challenges families faced during the COVID-19 pandemic. In-person teaching resumed in Stornoway, but Breasclete remained online until March 2022 because the hall did not reopen for events until then. |
Staffing |
Ms Rowlands was again pregnant and took maternity leave from the beginning of February 2022. The organisation is grateful to Carole Miller and Noel Eadie for taking on the positions of cover tutors in piano and guitar from February 2022 until Ms Rowlands return later in the year. Maternity leave is difficult to manage for a very small employer and the cost of cover slightly exceeded the SMP recoverable, due to a higher rate of pay being paid to cover tutors. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
Registered office |
Trustees |
Company Secretary |
Independent Examiner |
Calum Macdonald BA CA |
CIB Services |
Chartered Accountants |
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 |
YOUNG MUSICIANS HEBRIDES (REGISTERED NUMBER: SC280365) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 JULY 2023 |
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF |
YOUNG MUSICIANS HEBRIDES |
I report on the accounts for the year ended 31 July 2023 set out on pages six to fourteen. |
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 (as amended). 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 BA CA |
The Institute of Chartered Accountants of Scotland |
CIB Services |
Chartered Accountants |
63 Kenneth Street |
Stornoway |
Isle of Lewis |
Western Isles |
HS1 2DS |
16 April 2024 |
YOUNG MUSICIANS HEBRIDES |
STATEMENT OF FINANCIAL ACTIVITIES |
FOR THE YEAR ENDED 31 JULY 2023 |
31.7.23 | 31.7.22 |
Unrestricted | Restricted | Total | Total |
fund | fund | funds | funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies | 2 |
Charitable activities | 3 |
Musical education and training | 22,898 | - | 22,898 | 23,970 |
Total |
EXPENDITURE ON |
Charitable activities | 4 |
Musical education and training | 23,930 | - | 23,930 | 28,616 |
NET INCOME/(EXPENDITURE) | ( | ) | ( | ) | ( | ) |
RECONCILIATION OF FUNDS |
Total funds brought forward | ( | ) | ( | ) |
TOTAL FUNDS CARRIED FORWARD | ( | ) | ( | ) | (2,041 | ) |
YOUNG MUSICIANS HEBRIDES (REGISTERED NUMBER: SC280365) |
BALANCE SHEET |
31 JULY 2023 |
31.7.23 | 31.7.22 |
Unrestricted | Restricted | Total | Total |
fund | fund | funds | funds |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
CURRENT ASSETS |
Debtors | 12 |
CREDITORS |
Amounts falling due within one year | 13 | ( | ) | ( | ) | ( | ) |
NET CURRENT ASSETS/(LIABILITIES) | ( | ) | ( | ) | ( | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES | ( | ) | ( | ) | ( | ) |
NET ASSETS/(LIABILITIES) | ( | ) | ( | ) | ( | ) |
FUNDS | 15 |
Unrestricted funds | ( | ) | (2,041 | ) |
TOTAL FUNDS | ( | ) | (2,041 | ) |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2023. |
The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2023 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 and delivered in accordance with the special 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 2023 |
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 £. |
Going concern |
The activities of the charity have been affected by the impact of the COVID-19 pandemic and the trustees have assessed the charity's ability to continue as a going concern. |
The management team have prepared projections which reflect the financial impact of the coronavirus crisis on the charity. The trustees have reviewed the projections and, based on this review, have a reasonable expectation that the charity has adequate resources to continue in operation for a period of at least 12 months from the approval of the financial statements. The charity therefore continues to adopt the going concern basis in preparing its financial statements. |
Financial reporting standard 102 - reduced disclosure exemptions |
The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland': |
• | the requirements of Section 7 Statement of Cash Flows. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions that affect the amounts reported for assets, liabilities, income and expenditure. |
The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods should it affect future periods. |
The trustees consider that there are no significant areas ofjudgements, 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. |
YOUNG MUSICIANS HEBRIDES |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
1. | ACCOUNTING POLICIES - continued |
Charitable activities |
Charitable expenditure comprises those costs incurred by the charity in the delivery of its objects and activities. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. |
Governance costs |
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include accountancy fees and costs linked to the strategic management of the charity. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Equipment | - |
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. |
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. | DONATIONS AND LEGACIES |
31.7.23 | 31.7.22 |
£ | £ |
Donations |
YOUNG MUSICIANS HEBRIDES |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
3. | INCOME FROM CHARITABLE ACTIVITIES |
31.7.23 | 31.7.22 |
Activity | £ | £ |
Tuition fees & Subs | Musical education and training | 20,960 | 20,660 |
Other musical services | Musical education and training | - | 278 |
Employment allowance | Musical education and training | 250 | 485 |
SMP rebate | Musical education and training | 1,688 | 2,547 |
22,898 | 23,970 |
4. | CHARITABLE ACTIVITIES COSTS |
Direct | Support |
Costs (see | costs (see |
note 5) | note 6) | Totals |
£ | £ | £ |
Musical education and training | 22,238 | 1,692 | 23,930 |
5. | DIRECT COSTS OF CHARITABLE ACTIVITIES |
31.7.23 | 31.7.22 |
£ | £ |
Staff costs | 17,406 | 21,744 |
Rent and water rates | 3,600 | 3,450 |
Music books and equipment | - | 962 |
Repairs and maintenance | 79 | - |
Travel and mileage | - | 95 |
Broadband | 337 | 137 |
Subscriptions and memberships | 539 | 528 |
Sundries | 137 | - |
Depreciation | 140 | 140 |
22,238 | 27,056 |
6. | SUPPORT COSTS |
Governance |
Management | Finance | costs | Totals |
£ | £ | £ | £ |
Musical education and training | 239 | 144 | 1,309 | 1,692 |
YOUNG MUSICIANS HEBRIDES |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
6. | SUPPORT COSTS - continued |
Support costs, included in the above, are as follows: |
31.7.23 | 31.7.22 |
Musical |
education |
and | Total |
training | activities |
£ | £ |
Interest payable and similar charges | 239 | 13 |
Bank charges | 144 | 36 |
Accountancy fees | 1,309 | 1,511 |
1,692 | 1,560 |
7. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
31.7.23 | 31.7.22 |
£ | £ |
Depreciation - owned assets |
8. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31 July 2023 nor for the year ended 31 July 2022. |
Trustees' expenses |
There were no trustees' expenses paid for the year ended 31 July 2023 nor for the year ended 31 July 2022. |
9. | STAFF COSTS |
The average monthly number of employees during the year was as follows: |
31.7.23 | 31.7.22 |
Charitable activities |
YOUNG MUSICIANS HEBRIDES |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
10. | 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 | 23,970 | - | 23,970 |
Total |
EXPENDITURE ON |
Charitable activities |
Musical education and training | 28,616 | - | 28,616 |
NET INCOME/(EXPENDITURE) | ( | ) | ( | ) |
RECONCILIATION OF FUNDS |
Total funds brought forward | 2,588 | - |
TOTAL FUNDS CARRIED FORWARD | (2,041 | ) | - | (2,041 | ) |
11. | TANGIBLE FIXED ASSETS |
Computer |
Equipment | equipment | Totals |
£ | £ | £ |
COST |
At 1 August 2022 and 31 July 2023 |
DEPRECIATION |
At 1 August 2022 |
Charge for year |
At 31 July 2023 |
NET BOOK VALUE |
At 31 July 2023 |
At 31 July 2022 |
YOUNG MUSICIANS HEBRIDES |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.7.23 | 31.7.22 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.7.23 | 31.7.22 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Trade creditors |
Accrued expenses |
14. | LOANS |
An analysis of the maturity of loans is given below: |
31.7.23 | 31.7.22 |
£ | £ |
Amounts falling due within one year on demand: |
Bank overdrafts |
15. | MOVEMENT IN FUNDS |
Net |
movement | At |
At 1.8.22 | in funds | 31.7.23 |
£ | £ | £ |
Unrestricted funds |
General fund | (2,041 | ) | (1,032 | ) | (3,073 | ) |
TOTAL FUNDS | ( | ) | (1,032 | ) | (3,073 | ) |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 22,898 | (23,930 | ) | (1,032 | ) |
TOTAL FUNDS | ( | ) | (1,032 | ) |
YOUNG MUSICIANS HEBRIDES |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
15. | MOVEMENT IN FUNDS - continued |
Comparatives for movement in funds |
Net |
movement | At |
At 1.8.21 | in funds | 31.7.22 |
£ | £ | £ |
Unrestricted funds |
General fund | 2,588 | (4,629 | ) | (2,041 | ) |
TOTAL FUNDS | 2,588 | (4,629 | ) | (2,041 | ) |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 23,987 | (28,616 | ) | (4,629 | ) |
TOTAL FUNDS | 23,987 | (28,616 | ) | (4,629 | ) |
FUNDS |
General fund |
The general fund represents unrestricted funds which the trustees are free to use in accordance with the charitable objects. |
16. | RELATED PARTY DISCLOSURES |