REGISTERED COMPANY NUMBER: SC280365 (Scotland)

REGISTERED CHARITY NUMBER: SC26059

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD 1 AUGUST 2023 TO 31 JANUARY 2025

FOR

YOUNG MUSICIANS HEBRIDES

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

13

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 period 1 August 2023 to 31 January 2025. 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 has not been able to staff this aspiration following the departure of Ms Rowlands and Mrs Miller. The possibility of recruiting two new tutors and offering tuition in new areas fell through.

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

Charitable activities have not expanded. Group music-making is a key aim for the organisation, however no group activities or performances have been undertaken. Charitable aims to expand opportunities for children to learn to play an instrument are achieved by offering free beginner lessons of 20 minutes 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. Tuition in the Breasclete Outreach Centres is offered at the same rate as Stornoway.

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 was only one opportunity for YMH to provide workshops for An Lanntair. Projects to support children's' health and well-being through music, which is att the core of our charitable purposes, did not resume after COVID, perhaps due to increases in provision from Local Authority and other agencies.

As the organisation has contracted, excess instruments and equipment have been sold but the second-hand instrument market has collapsed in the last few years. Other youth music organisations have been approached to take instruments.

Reserves policy

During the year the charity's expenditure exceeded income resulting in a net surplus of £3,086 for the period (2023 - net expenditure of £1,032). Unrestricted reserves has as a result increased to £13.

The board acknowledges that the financial position has not improved and the organisation is only just covering costs. Whilst savings in rent and insurance were achieved, there is no financial security and the organisation is unable to build reserves. Late and unpaid fees have become a critical problem in the last two years of the cost of living crisis.

The board approached Point and Sandwick Trust for support to investigate development options. A review was carried out in August 2023 which recommended that the organisation seriously consider winding up. It was decided to try to recruit new tutors and students because a small projected profit from a larger number of students could begin to build stability. However the staffing challenges meant that this plan was no longer viable.

Standing order arrangements are available 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. Most of the outstanding fees were recovered before the end of the extended accounting period.

Staffing costs

Tuition income covered salaries and there was a small surplus over the year. This helped offset previous losses due to maternity cover costing more than could be recovered as replacement tutors were more experienced so they were paid a higher hourly rate. Credits and refunds from HMRC for differences in statutory maternity pay claims were used to offset National Insurance in this financial year. Tutors received an 5% average pay rise.

FUTURE PLANS

The organisation has run its course and is no longer viable as a company or a charity and the trustees will take steps to remove the organisation from Companies House and OSCR.

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.

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. Tuition fees were increased following two years of restraint to take account of families' cost of living challenges.

Staffing

Mrs Carole Miller joined the tutor team from August 2023 to October 2023 to explore new roles, however there were difficulties aligning pay scales and the board thanks her for her contribution. Ms Rowlands suffered a family tragedy in December 2023 and she was unable to continue teaching. Mrs Gray explored the possibility of teaching online to keep Ms Rowlands' job open for her, however this was unfeasible and she left the organisation on March 2024 after a period of paid sick leave and bereavement leave. Mrs Richings decided to retire in July 2024.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC280365 (Scotland)

Registered Charity number

SC26059

Registered office

3 Goathill Road

Stornoway

Isle of Lewis

HS1 2NJ

Trustees

D A Spark Chair

Mrs C J Ross-Jordan Vice chair

Company Secretary

Mrs J E Gray

Independent Examiner

John E Moffat BA, FCA

CIB Services

Chartered Accountants

63 Kenneth Street

Stornoway

Isle of Lewis

Western Isles

HS1 2DS

Bankers

Bank of Scotland

47 Cromwell Street

Stornoway

Isle of Lewis

HS1 2DE

Approved by order of the board of trustees on 31 October 2025 and signed on its behalf by:

Mrs C J Ross-Jordan - Trustee

I report on the accounts for the period 1 August 2023 to 31 January 2025 set out on pages five to thirteen.

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.

John E Moffat BA, FCA

The Institute of Chartered Accountants in England and Wales

CIB Services

Chartered Accountants

63 Kenneth Street

Stornoway

Isle of Lewis

Western Isles

HS1 2DS

31 October 2025

Period

1.8.23

to

Year Ended

31.1.25

31.7.23

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Charitable activities

2

Musical education and training

21,387

-

21,387

22,898

Other income

252

-

252

-

Total

21,639

-

21,639

22,898

EXPENDITURE ON

Charitable activities

3

Musical education and training

18,553

-

18,553

23,930

NET INCOME/(EXPENDITURE)

3,086

-

3,086

(1,032

)

RECONCILIATION OF FUNDS

Total funds brought forward

(3,073

)

-

(3,073

)

(2,041

)

TOTAL FUNDS CARRIED FORWARD

13

-

13

(3,073

)

31.1.25

31.7.23

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

10

-

-

-

140

CURRENT ASSETS

Debtors

11

508

-

508

2,901

Cash at bank

465

-

465

-

973

-

973

2,901

CREDITORS

Amounts falling due within one year

12

(960

)

-

(960

)

(6,114

)

NET CURRENT ASSETS/(LIABILITIES)

13

-

13

(3,213

)

TOTAL ASSETS LESS CURRENT LIABILITIES

13

-

13

(3,073

)

NET ASSETS/(LIABILITIES)

13

-

13

(3,073

)

FUNDS

14

Unrestricted funds

13

(3,073

)

TOTAL FUNDS

13

(3,073

)

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 31 January 2025.

The members have not required the company to obtain an audit of its financial statements for the period ended 31 January 2025 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 charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 31 October 2025 and were signed on its behalf by:

C J Ross-Jordan - Trustee

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 £1.

Going concern

The trustees will take steps to voluntarily remove the organisation from Companies House and OSCR.

Financial reporting standard 102 - reduced disclosure exemptions

The charitable company has taken advantage of the following disclosure exemption 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.

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

-

fully depreciated

Computer equipment

-

25% on reducing balance

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.	INCOME FROM CHARITABLE ACTIVITIES

Period

1.8.23

to

Year Ended

31.1.25

31.7.23

Activity

£

£

Tuition fees & Subs

Musical education and training

20,154

20,960

College courses and workshops

Musical education and training

629

-

Employment allowance

Musical education and training

159

250

SMP rebate

Musical education and training

429

1,688

HMRC supplement

Musical education and training

16

-

21,387

22,898

3.	CHARITABLE ACTIVITIES COSTS

Direct

Support

Costs (see

costs (see

note 4)

note 5)

Totals

£

£

£

Musical education and training

16,738

1,815

18,553

4.	DIRECT COSTS OF CHARITABLE ACTIVITIES

Period

1.8.23

to

Year Ended

31.1.25

31.7.23

£

£

Staff costs

13,695

17,406

Rent and water rates

1,900

3,600

Repairs and maintenance

-

79

Broadband

508

337

Subscriptions and memberships

495

539

Sundries

-

137

Depreciation

-

140

Loss on sale of assets

140

-

16,738

22,238

5.	SUPPORT COSTS

Governance

Management

Finance

costs

Totals

£

£

£

£

Musical education and training

332

180

1,303

1,815

Support costs, included in the above, are as follows:

Period

1.8.23

to

Year Ended

31.1.25

31.7.23

Musical

education

and

Total

training

activities

£

£

Interest payable and similar charges

332

239

Bank charges

180

144

Accountancy fees

1,303

1,309

1,815

1,692

6.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Period

1.8.23

to

Year Ended

31.1.25

31.7.23

£

£

Depreciation - owned assets

-

140

Surplus on disposal of fixed assets

(112

)

-

7.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the period ended 31 January 2025 nor for the year ended 31 July 2023.

Trustees' expenses

There were no trustees' expenses paid for the period ended 31 January 2025 nor for the year ended 31 July 2023.

8.	STAFF COSTS

The average monthly number of employees during the period was as follows:

Period

1.8.23

to

Year Ended

31.1.25

31.7.23

Charitable activities

2

2

No employees received emoluments in excess of £60,000.

9.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

fund

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Charitable activities

Musical education and training

22,898

-

22,898

EXPENDITURE ON

Charitable activities

Musical education and training

23,930

-

23,930

NET INCOME/(EXPENDITURE)

(1,032

)

-

(1,032

)

RECONCILIATION OF FUNDS

Total funds brought forward

(2,041

)

-

(2,041

)

TOTAL FUNDS CARRIED FORWARD

(3,073

)

-

(3,073

)

10.	TANGIBLE FIXED ASSETS

Computer

Equipment

equipment

Totals

£

£

£

COST

At 1 August 2023

35,742

560

36,302

Disposals

-

(560

)

(560

)

At 31 January 2025

35,742

-

35,742

DEPRECIATION

At 1 August 2023

35,742

420

36,162

Eliminated on disposal

-

(420

)

(420

)

At 31 January 2025

35,742

-

35,742

NET BOOK VALUE

At 31 January 2025

-

-

-

At 31 July 2023

-

140

140

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.25

31.7.23

£

£

Trade debtors

508

2,031

Other debtors

-

643

Prepayments

-

227

508

2,901

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.25

31.7.23

£

£

Bank loans and overdrafts (see note 13)

-

3,382

Trade creditors

-

1,531

Accrued expenses

960

1,201

960

6,114

13.

LOANS

An analysis of the maturity of loans is given below:

31.1.25

31.7.23

£

£

Amounts falling due within one year on demand:

Bank overdrafts

-

3,382

14.	MOVEMENT IN FUNDS

Net

movement

At

At 1.8.23

in funds

31.1.25

£

£

£

Unrestricted funds

General fund

(3,073

)

3,086

13

TOTAL FUNDS

(3,073

)

3,086

13

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

21,639

(18,553

)

3,086

TOTAL FUNDS

21,639

(18,553

)

3,086

Comparatives for 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

(2,041

)

(1,032

)

(3,073

)

Comparative 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

22,898

(23,930

)

(1,032

)

FUNDS

General fund

The general fund represents unrestricted funds which the trustees are free to use in accordance with the charitable objects.

15.	RELATED PARTY DISCLOSURES

There were no related party transactions for the period ended 31 January 2025.