The Trustees present their annual report and financial statements for the year ended 31 July 2025.
The accounts have been prepared in accordance with the accounting policies set out in note 1.1 to the accounts and comply with the Charity's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and 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).
In accordance with its Memorandum and Articles, the main objective of the Society is to promote the study and practice of music in Edinburgh and the surrounding district. To achieve this, it organises and promotes concerts and recitals of music, and makes its premises available for musical education and performance.
In addition, financial support is offered, at the discretion of the Council, with a view to affording relief to members of the musical profession resident in Scotland and to immediate family dependants - either as a result of emergency or for their continued musical development.
The Society has no employees, and depends principally on the voluntary work of its Council Members to maintain its activities.
The Trustees have referred to the guidance contained in OSCR's general guidance on public benefit when reviewing their aims and objectives and in planning their future activities.
The Society continues to support music scholars and provides young musicians with a concert platform.
The Society does not pay fees to performers but has a realistic budget to meet the reasonable expenses of emerging and established talent based both within and outwith Scotland. This includes the cost of travel as well as accommodation in some cases.
The Society continues to recognise the needs of members and others who have mobility problems and has a full suite of relevant policies covering Safeguarding, Health & Safety and Data Protection and these are kept under review.
In general, the Council believes that the Society continues to offer first class musical facilities to its members and the wider public and continues to invest in the provision and maintenance of instruments and associated resources. Room hire rates for members and amateur groups are set at affordable rates so as to encourage and support both amateur performers and aspiring professionals.
The Society was delighted to announce that HRH The Duke of Edinburgh became its Royal Patron in the year. This is a great honour for the Society, recognising its longevity, its unique character, and its potential to make a positive contribution to the musical life in Edinburgh.
It is also with great sadness that the Society announced the death of President Elaine Gould. Elaine’s Presidency, which began in 2017, saw the Society grow and thrive with remarkable vigour, in a number of ways: in membership, in its programmes of recitals, in its reputation among young musicians as an important showcase for their talents, and in its service to music teachers and musical societies using its facilities. The crowning achievement of her term of office has perhaps been the accolade of royal patronage, bestowed through acceptance by the Duke of Edinburgh of the role of Patron of the Society.
David Wilson was elected President at the subsequent AGM with Christine Hurley appointed as Vice President.
The financial performance in the year reflects a continuance of activities and modest growth, in-keeping with the Society's desire to be financially self-sufficient.
Income remained consistent with the prior year. A slight reduction in donation income was offset by a similar increase in interest income. Interest income is generated on cash reserves, which are crucial for the Society's long term survivability, to ensure that they do not diminish in value over time.
A generous donation of a George Gwilt portrait was received in the year and our sincere gratitude was expressed to the donor.
The cost of expense reimbursements to Artistes continues to exceed the donations received during performances. This remains sustainable, supported by income generated from other activities. We welcome performances from international Artistes and the cost of travel and accommodation in Edinburgh continues to increase. The reduction in cost this year reflects a reduced number of international performances and an increased proportion of solo performances.
Cleaning and repairs and maintenance represented our largest overheads. Upkeep of our listed premises is the driver of these overheads.
Various repairs took place in the year with the main items being chimney and storage heater repairs. Other routine repairs included instrument tuning, stairlift repair, and plumbing and electrical servicing.
Energy costs experienced a slight increase. The tariffs were renewed in the prior year and fixed until June 2027 which provides stability.
Insurance expenditure and other overheads remained largely stable.
Moving to the Balance Sheet, the main asset additions in the year were a Morton Gould 1981 harpsichord, replacing the existing harpsichord which was sold, and the aforementioned George Gwilt portrait.
We also saw a small increase in the value of our share portfolio.
All other balances appear to be in order with amounts receivable at a reasonable, recoverable level.
We concluded the year with a modest surplus of £4,092 and net assets of £316,437.
Reserves Policy
The Council aims to maintain unrestricted reserves at a level sufficient to meet any significant property repairs or other operational needs which might arise.
The restricted income fund is a benevolent fund, which is available, at the discretion of Council, for relief of members of the musical profession resident in Scotland. Much of this has already been distributed by way of donation.
Investment Policy
It is the Council's policy to achieve as high a rate of interest as possible from its cash reserves in order to contribute to current income and retain their value. The Society's premises are rented out to suitable tenants; this ordinarily provides a significant income stream which is applied to running costs.
Risk Management
The Council has assessed the major risks to which the Society is exposed and is satisfied that systems are in place or being planned to mitigate exposure to them.
The charity is in a strong enough financial position should unforeseen developments arise.
Property maintenance continues to be monitored and action is taken where appropriate.
Plans for Future Periods
The Society aims to continue its programme of concerts and related musical activities whenever possible and will continue to align itself with local community needs. We currently have sufficient demand from performers to comfortably fill a weekly programme for the year ahead.
The Council will continue to plan and schedule maintenance and improvement works to enhance the premises and its atmosphere.
The Society continues to establish closer links with providers of Further and Higher Musical Education in Edinburgh and the surrounding District with a view to encouraging involvement of staff and students – as part of an ongoing Outreach Policy.
Outreach and expanding the Society’s online presence and accessibility are key focus areas.
The Society is a company limited by guarantee and is governed by its Memorandum and Articles of Association and by an executive committee known as the Council.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Recruitment and appointment of Council Members
The Council Members are directors of the Society and are elected each year at the annual general meeting of the Society's membership. When vacancies arise in-year, new Council members are appointed by the existing Council members. Their duties are explained to them, and they are provided with a copy of the OSCR guidance for charity trustees.
Operational decisions are made at monthly Council meetings, and are carried out by relevant members of the Council. Strategic direction is set in consultation with the general membership at the Annual General Meeting.
Council members induction and training
New Council members undergo an orientation process to brief them on their legal obligations under charity and company law and on the Scottish Charity Regulator's guidance on Council member duties, and also to inform them of the content of the Memorandum and Articles of Association, the Council and decision-making processes, the business plan and recent financial performance of the Society. During the induction process they meet other Council members. Council members are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role
The Trustees, who are also the directors of Edinburgh Society of Musicians Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees' report was approved by the Board of Trustees.
The Trustees' report was approved by the Board of Trustees.
I report on the financial statements of the Charity for the year ended 31 July 2025, which are set out on pages 7 to 17.
It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. 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 seeks explanations from the 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.
In the course of 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 Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006 have not been met, or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Edinburgh Society of Musicians Limited is a private company limited by guarantee incorporated in Scotland. The registered office is 3 Belford Road, Edinburgh, Midlothian, EH4 3BL.
The accounts have been prepared in accordance with the Charity's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and “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)” (as amended for accounting periods commencing from 1 January 2016). The Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Unrestricted funds are expendable at the discretion of the Council members in furtherance of the objectives of the Society. If parts of the unrestricted funds are earmarked at the discretion of the members for a particular purpose, they are designated as a separate fund. This designation has an administrative purpose only and does not legally restrict the members' discretion to apply the fund.
Restricted funds are funds subject to specific requirements as to their use which may be declared by the donor or with their authority or created through legal processes, but still within the wider objects of the Society.
Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay expenditure. All costs have been directly attributed to one of the functional categories or resources expenses in the SOFA.
Resources expended are included in the SOFA on an accruals basis, inclusive of any VAT which cannot be recovered. Certain expenditure is directly attributable to specific activities and has been included in those cost categories.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Depreciation has not been provided on Heritable Property or Musical Instruments as FRS 102 requires. In the opinion of the Council members these assets have a useful life in excess of fifty years and the market value is considered to be in excess of the net book value. To provide depreciation would conflict with the objective of the financial statements to provide information about the financial position, performance and cash flows of the Society.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Investments are included at market value as of the date of the balance sheet and are held in order to provide an investment return for the Society.
Gains and losses on the disposal of, or increase or decrease in market value of investments are credited or charged to the general income fund.
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered.
Creditors and provisions
Creditors and provisions are recognised where there is a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. 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 underlying assumptions are reviewed on an ongoing basis. Revisions to accounting 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 revision and future periods where the revision affects both current and future periods.
Membership subscriptions (including gift aid)
Charges for use of room
Investments
Income from UK listed investments
Bank interest receivable
Raising funds
Rates and insurance
Repairs and renewals
Heat and light
Printing, stationery and postage
Performance expenses
Bank fees
Cleaning
IT software and consumables
Bad debts
All expenditure for charitable activity relates to music recitals and education.
The average monthly number of employees during the year was:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988.
Heritable Property at 3 Belford Road, Edinburgh was valued by the District Valuer on 28 January 1970 at £12,000. In the Council members opinion the current market value of the property is over £1,000,000 but no formal assessment has been carried out. The building is a category B listed building (defined as a building of special architectural or historic interest which is a major example of a particular period, style or building type).
The Benevolent Income Fund shall be applied for the purpose of affording temporary relief to members, widows, orphans or adherents of the musical society resident in Scotland.
The Society is a company limited by guarantee and therefore has no share capital.
There were no disclosable related party transactions during the year (2024 - none).