THE OXFORD SCHOOL OF DRAMA TRUST ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 INDEX Page 1-5 Group Trustees, report Independent audilois. report Consolidated Statement of financial activities Balance sheet Statement of Cashflows Notes to the accounts Income and expenditure account 10-11 12 13 14-24 25 Company No. 3638842 Registered Charity No. 1072770 THE OXFORD SCHOOL OF DRAMA TRUST GROUP TRUSTEES, REPORT This is the Twenty-third report of The Oxford S¢hool of Drama Trustees and covers the twelve months to 31 August 2021. REFERENCE AND ADMINISTRATIVE DETAILS Company number 3638842 Charity number 1072770 Registered Office Beaver House, 23-38 Hythe Bridge Street, Oxford OX12EP. Bankers National Westminster Bank PLC. Oxford Auditors Critchleys Audit LLP, Beaver House, 23-38 Hythe Bridge Street, Oxlord, OX12EP Principal address Sansomes Fami Stlrdios, Woodstock, Oxford. OX20 1 ER TrusteeslDirectors The trustees of the Charity are also the company's directors for the purposes of the Companies Act The Trustees. who served throughout the year unless otheNise slated. were.. N Macaluso A Millman P Wilson-smith (resigned 23 June 20211 D B Z8mpi (resigned 15 September 20201 N Raine (resigned 23 June 20211 B A Cessay E Fuller D Lincoln s stephens (appointed 16 March 20211 F Feehan lappoinled 7 December 20201 T Baldwin {appoinled 16 March 2021) A Byam lappoinled 16 March 20211 C A Bradley (appointed 16 March 20211 F Murray-Fuenles {appoinled 16 March 20211 M Neild {appointed 16 March 20211 Prlnclpal Edward Hicks THE OXFORD SCHOOL OF DRAMA TRUST GROUP TRUSTEES, REPORT (CONTINUED) STRUCTURE. GOVERNANCE AND MANAGEMENT The Trust is govemed by the provisions of its memorandum and articles of association and the accounts comply wrth Current ststutory requirements and the Trusys governing document. The Trustees have the power to appoint additional people as Trustee but any Trustees such appointed shall only hold office until the following Annual General Meeb'ng, where they can seek re-e￿C￿'0n. New Trustees are provided with a comprehensive pack of information about The Oxford School of Drama Trust, the content of which conforms to the recommendations of The Charity Commission. This includes.. Charity Commission booklet CC3 The Essential Trustee.. What you need to kni)w', information on the responsibilities of Trustees,. memorandurn and articles of association- accounts ft)r last three years incorporating Trustees, reports.. minutes of last three board meetings., brief history of the School and chronology of significant events," organisational chart,. current school prospectus", schedule of dates for fvrther meetings,. biographies of Trustees and dates of appointment.. details of conlraclual obligations.. summary of Trust's insurance policies including trustees, liability insurance,. details of any liligalion presently being undertaken either by or against the Trust," details of charity's professional advisers, including solicitors, bankers, extemal 8udilors,' policy documents, including Risk Management information, Health and Safety Policy. Equal Opportunities Policy. Disability Equality Policy. Safeguarding Policy. Data Policy, Environmental Pollcy, ICT Policy. Disciplinary Policy, GTievance Poli¢y. The Trustees are in over811 control of the Trust and consider strategic issues. Day lo day management of the Trust is delegated to the Principal. Key Managemènt Personnel Remuneration The pay and remuneration of the charity's key management personnel is re-evaluated annually. Every 3-5 years the Trustees undertake a comparative analysis of the pay and remuneialion of the key management personnel in similar organisalions as a benehmark. OBJECTIVES AND ACTIVITIES The Oxford School of Drama Trust was founded in 1998 as a Company Limited by Guarantee and a registered charity to train students for the acting profession. The Schi)ol's strategy is lo offer an education, as well as v(xalional training. lo students from a wide range of social and education81 backgrounds. For this reason il has a policy of limiting the intake of students to the School to ensure a high and constant level of support, both during and after training. The total intake in September 2017 was 38 students. The Trust has committed ar highly qualified leaching and adminislralive staff. The School employs six full-lime and two part-lime staff and has up to Ihity freelance tutors. The School is deemed Grade 1 'outslanding' by Ofsted and 'exemplary' by Trinity College London. The Trust provides the following courses.. One Year Dlploma in Acting Course Three Year Diploma in Acting course THE OXFORD SCHOOL OF DRAMA TRUST GROUP TRUSTEES, REPORT (CONTINUED) Public Benefit The Trustees have complied with Ihe duty in section 17151 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. The School aim is to ensure that its courses are open to all regardless of their background through ils participation in the Government's Dan￿ and Drama Awards IDaDAI Scheme. The Scheme enables talented students lo access financial assistance to attend courses at the S¢hool, provided that they are under the age of 24 and from households with a gross income of less than £90,000. The amount of financial assistsnce students rece*ve depends on their household income. Those in greatest need Iwilh a household income of less than £21,000) pay nothing towards their course fees and ¢an access a grant to help with their living costs. Those whose household income is £85.000 £90.000 pay £7,175 for their course fees, a reduction of £8.500 on the published rate. There is a sliding scale of support for students between these tsvo income figures. Students aged over 18 years who have some fees to pay for their course can also access an Advanced Learning Loan of up to £7.395 towards the course fees. In addition lo these schemes the School has ils own Hardship Fund for those students experiencing financial difficulties. The school outreach work was seriously undemiined by Covid but we were still able to run workshops and Q&A's both online and in person in the form of workshops targeted al under-represented groups. This work is undertaken in partnership with staff, students and graduate actots. It inclLJded sessions that ranged from Monobox lonlinel 30+ NYT- Playing Up (London) 50+ lo the FDC Training Fair (Leeds) 500+ Due to the Pandemic a lol of smaller activities were also organised online in the form of presenlalK)ns al school and ollege online careers events. Drama groups, hosting open days and workshops for those interested in drama training. We also launched a partnership wrth the National Saturday club offering free weekty drama classes to local children from low income families. This has b￿n a huge success and is due to be expanded next year. The Pandemic did affect the number of Public performances the school was able to do initially. bul performances look place at venues including The North Wall, The Park Theatre (London), Southwark Playhouse ILondon}, Leicester Square Theatre {Londonl, local Oxfordshire community and a number of outdoor locations. We played to a tot81 audience of 2,284. ACHIEVEMENTS AND PERFORMANCE The graduates from the School have continued lo have a successful year despite the reduction of theatre produetrons due to Covid. Working for a range of companies, theatre credits include the Abbey Theatre (Dublinl, Bush Theatre, Gielgud Theatre (Wesl End}, Harold Pinter Theatre (Wesl End}. The King's Head ILondonl, Duke of York (West Endl, The National Theatre, and The RSC amongst others. On the small screen they could be seen as regular or lead characters in Netflix's Bridgerton, Sex Education, The Crown, Red Notice. The Witcher.. Blood Origin, Young Wallander,. BBC'S A Very British Scandal, Call the Midwife, Casualty. Killing Eve., IDfs Grantchesler, Emmerdale, No Return,. Sky's Britannia, Frayed, Temple, Wolfe,. HBO'S Gangs of London. Landscapers. In Film Infinite, Living, Seize Them, The Electrical Life of Louis Wain, Students and graduates winning or nominated for awards this year include.. Freddy Carter selected as one of Decider's 11 Rising Stars to Watch For in 2021 Finlay James Selected for Vvarner Bros. world wide search for the top'Actors in Training, 2021 Nicola Coughlan wins IFTA Rising Star Award Victoria Bavisler (Producer} Multiple nominations for County Lines. THE OXFORD SCHOOL OF DRAMA TRUST GROUP TRUSTEES, REPORT (CONTINUED) Activities The School's Student Hardship Fund continued lo support those in financial difficulty. The number of students needing support continues to increase. During the Autumn term ten awards were made lotalling £3,000 and in Spring ten awards were made lotalling £2,650. The School's New Inilialives Fund supported graduates in creating new work, forming industry partnerships and presenting their work to an audience both nationally and internnationally. The School invites applications to the Fund from recent graduates with some experience in the industry. As tt makes awards from the Fund every other year il did not run this year. Plans for the future Following an in-depth review of the curriculum the school is looking to create a new five year plan starting from September 2022. Al the heart of the review is a new refreshed curriculum that can build on the best of the school's traditions while preparing students for the future. Part of this includes the creation of new posts and new appointments and reorganising responsibilities amongst SMT. Ifs hoped these appointments will help address fvndrai5ing, improve sludenl support. improve communication for staff and students. build awareness, expand outreach and short courses, improve the diversity of staff and students, and make the school more accessible lo more people regardless of background. Through this work the school can build on ils repuation by setting new priorities that allow the Trust lo continue to provide an oulslanding training for a small number of students from diverse backgrounds. FINANCIAL REVIEW The charity achieved a surplus of £81,239 on unrestricted funds in the year. As in previous years the majority of the income came from course fees. Reserves As at 31 August 2021, the charity's total fLfnds were £1,370,936 of which. £75,619 was represented by restricted funds and £274,406 by designated funds {equal to the nel book value of the charity's leasehold buildings). leaving a balance of £1,020,911 on general funds. The Trustee$ consider that reserves ideally need to be Suff￿lent to cover expenditure for a period of six months. This would equate to approximatety £500,000. As at 31 August 2021, after having designated funds to represent the investment in the new Theatre and Libraryloffice Development and for the Barn Development works, there was a balance of £1,020,911 on general funds. £500,000 of this was represented by the investment in Oxford School of Drama Limited leaving a balance of free resetves of £520,911. THE OXFORD SCHOOL OF DRAMA TRUST TRUSTEES, REPORT IcoKfsNUEDI Risk Managamont stat•mgnt The Trust maintains risk management and other Policies as listed In the Annual Return. The Trustees con5kder the principal risks and uncertainlres affecting the Gharity are.. Potential future changes in DADA (Dance and Drama Awards) fundirvJ arrangements Recruitment and retention of g¢)od qualty staff and tutors Issues that may harm'5 the Charity reputation The risk management policy has been exparyjed to cover the areas of risk recornmended by the Charity Commission.. govemance and management. operational, financial, environment arKI exlemal. law and regulation compliance. In addition, Specif￿ poltcies cover complaints handling and conflicts of inlerosts. The Company keeps risk management under continual review. and conducts a formal risk review once a year. which is discussed and approved by the Trustees. Major risks are reviewed and assessed, and contr syste￿￿ are established lo manage those risks. STATEMENT OF TRUSTEES. RESPONSIBILITIES The Trustees are responsible for preparirvJ the Annual Report arxl the financial slaternent5 in accordanGe wtth applicable law and regulations. Company18w requires the trustees to prepare financial statements for each Tinar￿181 year. Under that law the Trustees have elected to prepare the financial statements 111 accordance wlth Un(ted Kingdom Generally Accepted Accounting PractiGe (United Kingdom Accounting Standards and applicable lawl. Under company law the Trustees musl not approve Ihe finawal slalemenls unless they are satisfied that they give a twe and fair view of the slate of affairs of the charity and of the inGoming resources and application of resources of the charity lor that period. In weparing th¢se financial slalements, the Iru51ees ￿e rquired lo.. select suitable accounting w)IKies and then apply them consistently: make Judgements and accounting eslimales that are reasonable and prudent: epare the financial slalemenls on the going concern basls unless It is-lnappropriate lo presume that the company wi15 continue in operation. The trustees are responsible for keeping adequate accounting recor(Is that are sufficient lo show and explain the charity's transactions and disdose with reasonable accuracy al ary lime the financial position of the company and enable them to ensure that the finanoal statements with the Companies Act 2006. They are also responsible for safeguarding the assets of th8 ch8rty and he￿￿ for taklng reasonatde steps for the prevention 8n(I detection of fraud and other irregularitie5. So far as the Trustees are aware, there 18 no relevant audlt InformatDn (information needed by the companys auditors in connection with preparing theK report) of which the company's audllors are unaware: and Each Trustee has taken all the steps that he ought to have taken as a dlrector in order to make him5ell aware of any ￿levant audit inforMat￿n and to e5tat4ish that the C0Fr￿3n￿S auditors are aware of that information. This report has been prepared in ￿CordanCe wllh the Small Companies Re9ime under Section 41912) of the Compani8s Act 2006. This report was app y the Trustees on... 67 usleej INDEPENDENT AUDITORS. REPORTTO THE MEMBERS OF THE OXFORD SCHOOL OF DRAMA TRUST Oplnion We have audited the financial statements of The Oxford School of Drama Trust (the 'Charity") for the year ended 31 August 2021 which comprise the Consolidated Statement of Financial Aclivilies, Balance Sheets, the Statements of Cash Flows, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting Iramework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102.. The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion. the financial statements.. give a true and fair view of the slate of the group and Charity's affairs as at 31 August 2021 and of the group's income and expenditure for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Pr8Ctice', have been prepared in accordance with the requirernents of the Companies Act 2006. Basis for opinion We conducted our audlt in accordance with International Standards on Auditing IUKI IISAS IUKI) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial slalemenls section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordan* with these requirements. We believe that the audit evidence we have obtained is suffieient and appropriate to provide basis for our opinion. Conclusions relating to golng concern In auditing the financial statements, we have concluded that the Trustees, use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubt on the Trust's ability lo continue as a going concern for a period of at least ￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE OXFORD SCHOOL OF DRAMA TRUST {CONTINUED) Other information The Iruslees are responsible for the other information. The other information comprises the information induded in the annual report other than the financial statements and our auditor's report Ihereon. Our opinion on the financial statements does not cover the other infomation and. except to the extent othetwise explicitly stated in our report, we do not express any form of assurance conclusion Ihereon. In connection with our audit of the financial slatemenls, our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsislenl with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent materi21 misstalemenls, we are required lo determine whether there is a material misslaternenl in the financial slalemenls or a material misstatement of the other information. If, based on the work we have performed, w8 conclude that there is a material misstatement of this other information. we are required lo report that fact. We have nothing lo report in this regard. Opinions on other matters prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the trustees, report {incorporating the directors, report) for the financial yeaT for which the financial statements are prepared is consistent with the financial stalemenls., and the Iruslees, report lincorporats'ng the directors. report) have been prepared in accordance with applicable legal requirements. Matters on which we aro requlred to report by ex¢eption In the light of the knowledge and understanding of the company and ils environment obtained in the course of the audit, we have not identified material misststements in the trustees, report. We have nothing lo report in respect of the following matters in relation to which the Companies Act 2006 requires us to report lo you if, in our opinion.. sufficient accounting records have not been kept., the financial ststemenls are not in agreement with the accounting records and returns.. certain disclosures of Iruslees, remuneration specified by law are not made.. or we have not obtained all the information and explanations necessary for the purptsses of OUT audit the trustees were not entitled lo take advantage of the small companies. exemptions in preparing the directors. report and from the requirement to prepare a strategic reporL Responsibllities of the trustees As explained more fully in the trustees, responsibilities statement Isel out on page 51. the Iruslees are responsible for the preparation of the financial stslemenls and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary lo enable the preparation of financial statements that are free from material misslatemenl, whether due to fraud or error. In preparing the financial statement5, the trustees are responsible for assessing the Charity's ability lo continue as a going concem, disclosing, as applicable. matters related lo going ¢oncern and using the going concern basis of accounting unless the trustee5 either intend to liquidate the Charity or lo cease operations, or have no realistic alternative but to do so. INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE OXFORD SCHOOL OF DRAMA TRUST {CONTINUED) Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstalemenl, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when il exists. Misslatemenls can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expected to influence the economic decisions of useis taken on the basis of these financial stslements. Irregu18rilies, including fraud, are instsnces of non-compliance with laws and regulations. We design procedures in line with our responsibilities, oudined above, to detect material misstatements in respect of irregularities, including fraud. The extent lo which our procedures are capable of detecting irregularities, induding fraud, is detailed below.. the engagement partner ensured that the engagement team Collectively had the appropriate competence, capabilities and skills lo identify or recognise non-compliance with applicable laws and regulations.. we identified the laws and regulations appluble lo the company through discussions with directors and other management, and from our knowledge and experience.. we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company. we assessed the extent of compliance with the laws and regulations identified above through making enquines of management and inspecting legal correspondence where applicable,. and identified laws and regulations were communicated within the audrt team regularfy and the team remained alert lo instsnces of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements lo material misstatement. including obtaining an understanding of how fraud might occur, by". making enquiries of management as to where they considered there was SUS￿p11b1l1ty to fraud. their knowledge of actual. suspected and alleged fraud.. and considering the intemal controls in place to miligale risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. perfomied analytical procedures to identrfy any unusual or unexpected relationships- tested journal entries to identify unusual transactions., assessed whether judgements and assumptions made in determining the accounting estimates we indicative of potential bias.. and INDEPENDENT AUDITORS, REPORTTO THE MEMBERS OF THE OXFORD SCHOOL OF DRAMA TRUST ICONTINUEDI investigated the rationale behind significant or unusual transactions. In response lo the risk of irregularities and non-compliance with laws and regulations. we designed procedures which included, but were not limited lo.. agreeing financial statement disclosures to underlying supporbng documentation,. reading the minutes of meetings of those charged with governance., enqLtiring of management as to actual and FX)lenlial litigats'on and claims.. reviewing relevant correspondence. There are inherent limitations in our audit procedures described above. The MO￿ removed that laws and regulations are from financial Iransaclions, the less likely il is that we would become awa￿ of non-compliance. Auditing standards also limlt the audit procedures required to identify non-compliance with laws and regulations to enquiry of the dlrectors and other management and the inspection of regulatory and legal correspondence, if any. Material misstslemenls that arise due to fraud can be harder to delect than those that arise from error as they may involve deliberate concealment or ¢ollusion. A further description of our responsibilib'es for the audit of the financial statements is located on the Financial Reporting Coun¢il'$ website al.. www.frc.org.ukjaudilorsresponsibilities. This desciiplion forms part of our auditor's report. Use of our report This report is made solely to the Charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might stale to the Charity's members those matters we are required to slate lo them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not ac￿p1 or assume responsibility to anyone other than the Charity's members as a body. for our audit work. for this report. or for the opinions we have fomied. Robert Trfjrtland Senior Slatulory Auditor for and on behalf ol Crilchleys Audit LLP Statutory Auditor Beaver House 23-38 Hythe Bridge Street Oxford OX12EP 241 rlzozL 10 THE OXFORD SCHOOL OF DRAMA TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES Ilncluding Income and Expenditure Account) FOR THE YEAR ENDED 31 AUGUST 2021 Total Funds 2021 Total Funds 2020 Unrestricted Restricted Funds Funds Not¢ INCOME FROM.. Donations and Legacies 51.329 51.329 45,126 Charitable activities Drama School 1,300.114 1,300,114 1.259.518 Investments- interest receivable 500 500 Total income 1300614 51329 1351943 1306 662 EXPENDITURE ON; Charitable activities: Drama School 1251740 58 574 1310314 1 177 Total expenditure 1251 740 58 574 1310314 1 177 92 Net Incomel{expenditure) 48,874 17,2451 41,629 128.733 Transfers belween fvnds 15 Net movement on funds 70,874 {29,2451 41,629 128,733 Reconclliation of funds; Total funds brought forward 1 124 006 104 864 1228 870 1 100 137 Total funds carried foThvard 11 THE OXFORD SCHOOL OF DRAMA TRUST STATEMENT OF FINANCIAL ACTIVITIES Ilncluding Incom¢ and Expenditure Account) FOR THE YEAR ENDED 31 AUGUST 2020 {comparatlves) Totsl Funds 2020 Unrestrlcted Restrlcted Funds Funds Note INCOME FROM: Donations and Legacies 45,126 45,126 Charitable actlvltles Drama School 1,259.518 1,259,518 Investments- interest recelvable 2018 Total Income 1261536 1306 662 EXPENDITURE ON., Charltable actSvltSes: DratTra School 1177929 Total expenditure 1 107 870 1 177 929 Net expenditure 153.666 124,933) 128,733 Transfers be￿een fvnds 15 Net movement on funds 171,416 (42,683} 128,733 Reconciliation of fund$; Total funds brought fomard 952 590 147 547 1 100 137 Total funds carried foThvard 12 THE OXFORD SCHOOL OF DRAMA TRUST (company no: 363e8421 BALANCE SHEETS AS AT 31 AUGUST 2021 Group 2Q21 Trust 2021 Group 2020 Trust 2020 Nots FIXED ASSErs Intangible assets Investments 346,212 389.488 500,OCx) 0.000 289810 Tangible assets 86 632.993 780,639 681,616 789.810 CURRENT ASSETS Debtors Cash al bank and In hand 45,591 1591 588 67.332 7,451 03 010 1281405 42.957 1175871 10 1,636,997 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 1,270,160 1.296,8￿ 1.278.828 11 93 620 045 691 602 NET CURRENT ASSETS 697,506 650.297 607.254 567.132 cRED￿ORS. AMOUNTS FALLING DUE AFTER ONE YEAR 12 NET ASSETS Funds: Unrestricted funds: General fvnds Destgnaled fijnos 920.474 274,406 1.020,911 274,406 838.224 285,782 906.296 285,782 14 Restricted fvnds 15 104 864 These account5 we roved and aulhorised for i8sue by Ihe Trustee8 on ... ioip M.NEILD 13 THE OXFORD SCHOOL OF DRAMA TRUST STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021 Group 2021 Trust 2021 Group 2020 Trust 2020 Net cash (used inyprovided by operating activities 348,627 60,792 123.8681 369,573 Cash flows from investing activities Purchase of tangible fixed assets Cash acquired with subsidiary Purchase of subsidiary 118,4441 113,6531 111.691} 501,205 {20,000) (20,000} 1360,0001 1360.000) {9,4611 Cash generated byl{used inl investing actlvftles (38,4441 {33,653} 129,514 1369.4611 IDecreaseyincrease in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and Gash equivalents at the end of the year 310,183 27,139 105.646 112 1281405 1 175 871 1 175 759 1 175 759 Cash provided by operating activitles: Nel movement in funds Depreciation Amortisalion {Increaselldecrease in debtors Increasel{decreasel in creditors 41,629 23,791 43,276 (13,3011 73.994 22,823 128,733 23,913 43,276 185,962 405 752 196.805 23,503 {9,5351 26 490 181,499 Net cash (used Inllprovided by operating activities Ca$h and cash equivalents conslst of: Cash in hand Notice deposits Iless than 1 yearl 1,503.947 1,115,369 1,194,248 1.088.714 14 THE OXFORD SCHOOL OF DRAMA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 ACCOUNTING POLICIES General Informatlon This Company is a Charllable Company Limited by guarantee incorporated in United Kingdom. Oxford School of Drama Trust is a public benefit entity. operating from Sansomes Farm Studios. Woodstock, Oxford. OX20 1 ER. bl Basis of preparation The accounts have been prepared under the historical cost convention and in accordan￿ with the Charities (Accounts and Reports) Regulations and Statement of Recommended Practice °Accounling and Reporbng by Charities" IFRS 1021 and the Companies Act 2006. These financial statements have been prepared in accordance with Financial Reporting Standard 102 'The financial Reporting Standard applicable in the UK and Republic of Ireland. There are no uncertainties alJ)ut the charity's ability to continue as a going concem. The consolidated accounts included the result of the Trust and its subsidiary The Oxford School of Drama Limited from the date of acquisition. No parent company Statement of Financial Aclivilies is presented as permilled by s408 of the Companies Act 2006. The nel mvement in funds attributable to the parent company is £73,99412020.' £196,805). Income Income includes fees for courses organised by the Trust, associated fees, and deposit interest. Income is included in the income and expenditure account in the year to which the income relates. Income received in the year relating to terms starbng after the year end is deferred and included as income in the accounts covering the period to whi¢h il relates. d) Expenditure Expenditure is recognised when a liability is incurred. Charitable activities include expenditure associated with the running of the courses provided. This includes both the direct costs and support costs relating lo this activity. Governance costs include those incurred in the governance of the charity and ils assets and are primarily associated with conslitulional and ststutory requirements. Support costs include central fvnction. All of these have been allocated to the principal activity of the charity. 15 THE OXFORD SCHOOL OF DRAMA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 ICONTINUED} Funds structure The charity has a number of restricted income funds lo account for situations where a donor requires that a donation mltst be spent on a parts"cular purpose or where funds have been raised for a specific purpose. All other funds are unrestricted income funds. The Trustee5 have sel up the designated funds for the purpose of funding a new theatre, the libraryloffice developrnenl and bam development works. Intangible assets and amortisation Intangible assets are originally recognised as the value of goodwill upon their purchase. Amortisalion is provided to wrrte off the goodwill over its expecled useful economic life of 10 years. g) Fixed Asset Investments Investments are held al cost less any impaim)ent in value. h) Tangible lixgd assots and depreciation Oeprecialion is provided to write off the cost of tangible fixed assets over their expected useful lives at the following rates. Office equipment Leasehold improvements 25/9 Length of lease Operatlng leases Rentals due under operating leases are charged to the Statement of Financial Activities on an accruals basis. i) Pension Costs The charity operates a defined contribution pension scheme. Contributions are recognised as an expense when they fall due. k) Cash and cash equlvalents Cash and cash equivalents incudes notice accounts with a maturty of less than one year. INCOME - OPERATION OF DRAMA SCHOOL Trust Limited 2021 2020 Course fees Less.. bursaries awarded Audition fees Box office sales Student transport COVID-19 Business Support Granl other income 904.795 122.0001 20,661 10,943 12,135 328,000 1,232.795 122,000) 27,760 10.943 20.785 1,153.640 117,750) 36,212 7,099 8,650 35,353 25,000 46 16 THE OXFORD SCHOOL OF DRAMA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 (CONTINUEOI CHARITABLE ACTIVITIES Trust Llmlted 2021 2020 Activity: Operation of drama school Staff Depreciation Amortisation Direct Costs Support Costs 260,707 22,823 43,276 515,722 87 96,043 356,750 23,791 43,276 636,132 250 365 339,911 23,912 43,276 515,608 120,410 SUPPORT COSTS Trust Limited 2021 2020 Legal and other fees Finance General office Premises G0Veman￿ costs- auditOTS' rèmuneration 5.532 1.962 27,387 139,696 7,389 800 1,753 57,774 12.921 2,762 29,140 197,470 14.689 2,447 26,547 203.802 In addition the auditors received £2,20012020.' £2,431) for other services. STAFF COSTS (EXCLUDING TUTORS} 2021 2020 Salaries and wages Employers national insurance Pension costs 314,396 30.917 295,299 27.701 The average number of employees during the year was 8 {2020.' 81. 2021 No 2020 No Number of higher paid employees in bands OP £60,001- £70,000 £70,001- £80,000 The charity's key management personnel remuneration in the year {includin9 employefs national insurance and pension costs) was £153,066 {2020.' £149,935). 17 THE OXFORD SCHOOL OF DRAMA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 20211CONTINUEDI INTANGIBLE ASSETS Goodwill on consolidation Cost or valuation At 1 September 2020 At 37 August 2021 Amortisation At I September 2020 Provided in year Disposals 43,276 43,276 At 31 August 2021 Net b¢>ok amount At 31 August 2021 At 37 August 2020 loo0￿ of shares in Oxford School of Drama Limited IOSDI were purchased on 13 September 2019 for £360,000 in cash and deferred consideration of £140,000. The goodwill was calculated as consideration {£500.0001 less nel assets of OSD at the date of acquisition. 18 THE OXFORD SCHOOL OF DRAMA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 (CONTINUED) INVESTMENTS Shares In subsidiary undertaking At 1 September 2020 Additions Disposals 500,000 Al 31 Augu$t 2021 The Oxford School of Drama Limited IOSDI is a wholly owned subsidiary {company number.. 1973452). OSD'S regISte￿d Offi￿ is.. Beaver House 23-38 Hythe Bridge Street Oxford OX12EP OSD undertakes the foundation course for Oxford School of Drama. A summary of tts trading results and nel assets for the year is shown below. 2021 2020 Profit and loss account Turnover Cost of sales 343.795 119411 345.907 112 6031 Gross profit Administrative expenses Other interest receivable and similar income Taxation 224,384 {163,2551 29 233,304 {159,4461 572 Net income for the year Balance Sheet Fixed assets Current assets CLtrrenl liabilil*es 6.141 403,384 356 173 2.318 110.955 Net assets All income and expenditure for the subsidiary during the year is included within the consolmlated statement of financial activities. o o CW y)¢D I I I I I I I I I u<2 % Ql of Dratna Trust and it tnust not be di5c105ed to third parties, quoted or referred to. withixjt our prior written consent. No re5pon5ibility is assumed by us to any other person or entity. Management Letter 2021 Page13 CRITCHLEYS Executive Summary We are ple35ed to attach our report and our key findings are summari5ed below. Audit report outcome unmodified Page 8. The number of audit adjustments identified and their impact. Page 6. The number of potential control weakne55e5 identified and their significance. Page 7. Any other matters o15ignificance to be raised. Page 8. Any Specific points Within the proposed letter of repiesentatlgn. Page 8. Further assistance should Mernber5 01 the Board ol Trust￿5 or rn3nagernent wish to ask any questions regarding the matters raised in thi5 letter or if we can be ol any further assistance. please cotTrtact Robert Kirtland. Robert Kirtland FCA Audit Partner Email RKI Teleohone 01865 261100 Web51te Find out more abour Robert Kirrland by warching his introductory video on www.critchle s.co.uk erts Robert Management Letter 2021 Page14 CRITCHLEYS Audit Status Our audit is 5ubstaDtially cotnplete. There have been no significant change5 ttrovr audit plan, dated 7 January 2022. Areas of Audit Focus A5 detailed in our audit plan, dated 7 January 2022, we identified the following Significant risk area5 during our audit pl3Trning and have included a brief summary ol the work carried out and our finding5 below. Risk area Work caiiied out Conclusion Fraud in relation to renveue recognition Income wa5 tested via proof-ln-ioials. as well 35 a sample testing. Additionally. cut-off was checked vi3 arb after dale review_ No issues were noted during resting that was undertaken. Undisclosed related party transactions The nominal ledger provided w35 analysed to ensure that all poreniial related party transactions were adeqvarely disclosed_ Walkthrough iests were undertaken to ensure that controls were In place 35 expected. Journa15 were 3ssessed for any unusual activity_ The rnethod used to esrablish the solil of C05t5 between Ltd ompany and Trvsr was understood and reperformed to ensure reasonable. No issues were noted during testing that was undertaken. Potential For management override ol controls (including the split of costs beiween Ltd company and Trv5tl No issues were noted during testing that was undertaken. 4. Gift aid received from subsidiary It was ensvred rhat rhe £45,000 gift aid paymeni had been paid within 9 rnonth5 of the year end_ The gift aid payment was tnade within 9 rnonths of the year end. Debtors reduced to Trade debiors and remove 2021/22 lees in deferred income wa5 advance rhat had noi reviewed and any been paid as at the year corresponding income end was removed From borh areas of the accounts. No issves were noted. Adjustment wa5 presentational and had no eff&ct on net asseis or the Surplus in the account5. Management Letter 2021 P3gel s CRITCHLEYS Allocation of income or Fund workings were expenditure to checked to nominal resiricted or designated ledger 10 ensure fund5 allocations were correct. No issues were noted during testing that was undertaken. Our audit procedure5 go beyoTrd the above higher risk areas tg cover material areas of the financial statements. No Issues were ftoied during the procedures_ Audit differences In the normal course of an avdil. we can Identify missiatements In the financial data provided 10 us ai the 51art ol the audit. Where individual error5 or their aggregatioTr exceed our m3teiiality level of £25.595 we are required to modify our audit report if they are Trot adjusted in the final financial 5tatemeTrt5. For the interest of Board ol Trusiees ar)d managemeni. we have summarised both the errors Ihai have been corrected and those that have not. In accordance wilh ICAEW guidance on triviality Iimirs For avdii, we report all Iierns exceeding 5% of the materiality, which for thi5 year is £1,280. Summary of adjusted differences from draft numbers provided by management Oescription of error lrnpact on SOFA Imp3Ct on Balance sheet Presentational retnov31 of amounts within deferred incotne and trade debtors Presentational - debit balance5 Wlthin creditors moved to debtor5 TOTAL Summary of unadjusted differences in the final financial statements for approval Description 91 error lrnpact on SOFA Irnpact on Balance sheer Reason For amending None TOTAL Management Letter 2021 Page16 CRITCHLEYS Potential Control Weaknesses Your management is responsible for idenrilication, assessment and monitoring ol risk, and lor developing, operating and monitoring the systems of internal control. Our udit procedures are designed primarily lor the Pufpose ol expressing an opinion on the financial statements and therefore do not constitute a lull and detailed review ol all a5pect5 01 the systems and controls and therefore cannot be relied upon to identify all actual and potential weaknesses. We have inclvded a summary ol the issues rhar we have ideniilied below. New matters arising in this year Observation Implications & risk Recommendation Management response No signilicanr new maiters wère ideniilied Management Letter 2021 Page17 CRITCHLEYS Proposed Letter of Representation In accordance with standard practice for such an audit and based on the work carried out to date, we will ask the Board of Trustees 10 approve and sign Ihe atrached leffer of represeniaiion 10 accompany ihe signed final financial staiements. We draw your attention 10 the specific representations contained wiihin point 16. othepNi5e the letter is routine. Other audit matters Detailed comments on the financial statements and audit opinion Based upon our work carried out to date. and subject to no significant events occurring prior to the signing of the audit report, we anticipate i55uiDg an vnmodified audit report in your 5t3tutory financial statemeTrts. (lualitative aspects of accounting practices We have no comtnents to make concerning the qualitative aspect5 01 the Oxford School of Drama Trust's accounting practice5 and financi31 reporting, including acc(xJnting policies, 3ccounting eStI￿ateS and financial statement disclosures_ Judgements made by management During the course of our audit we are required to review the rnain jvdgemeTrts or e5timate5 made by management, which would have a material or significant impact on the financial statement5. We have Identified Ihe following main judgemeni areas and our comments Ihereon. Deferred income- based upon the fee5 for students alieady signed up for the next year. No i55ue5 noted. Depre¢iaiion- depreciation policy consisieni with previous years_ No norFtrivial errors were id&ntilied when re￿ICUlatiftg depreciation_ Accrued Income- an after dale receipts review was vnderraken_ No missing accrved income was Identified during this test. Accruals - based upon quoies, contracrs and Invoices. A sample was iesied for accvracy and an after date paymenis review was undertaken. No issues noied from iesring. Cost apportionment berween companies- based upon numbers of stvdents on rhe 3 year and p05tgraduate covrses compared to the total nvmbef of Slvdents wiihin Ihe school_ Deemed reasonable. Amortisaiion- goodwill Is being depreciated over io years. Deemed reasonable_ Deferred coTrsideration- Based on the original agreement with a delay to one f60.ooo payment agreed unofficially. Amount remaining considered to be accurate. Related parties The Trust 15 required to disclose all related party tran5aCtion5. per the Ch31ities SORP, within it5 financial staiemenis. We have ideniified Ihe following poteniial related parry Iransaciions." Intercompany recharge5 and intercompany balance at the year end Deferred consideratior of fi?o.000 owed 10 P Wilson-smiih £600 donation received frorn i Trust We have no comment5 to make over how the charity identifie5 related party transactions. Management Letter 2021 P3ge18 CRITCHLEYS Independence matters Non-audil services provided and long involvement We provide accounting and taxation services to the companies in addition 10 acting as auditors and Robert Kirtland has acted a5 EDg3gement Partner for fftoie than 10 years. We wish to confirm to you that in our opinion the provision ol such services and Ihe continved involvement of Robert Kirtland as Responsible Individual do Dot affect our independence a5 the firm's quality control procedures provide 3dequate safeguards In respeci of Ihe Ihese mailers. This coasists of a review ol Ihe key sections ol Ihe audii files by a second Responsible Individual. There is a150 informed management for the nOtra￿lIt 5ervice5. Personal independence.. All Qritchleys Audit LLP slaff must adhere ro sirict regulatory, professional and internal independence requirements related to investments or bu51nes5 relationships with clients. All staff tnust confirm such compliance on an annval basis_ Serious incident reporting All tru5tee5 are re5POn5ible for identifying and reporting. in a timely fashion, any seriou5 incidents to the Chariiy Commission, In accordan￿ wilh Iheir requiremenis for all regisiered charities. whilst our audit scope doe5 not specifically require u5 to identify any such matter5. we report to the member5 that there were no such actual or poiential matters ihar came io our artenrion_ Management Letter 2021 Page19 CRITCHLEYS Current and future issues in the sector We wish to draw your attention 10 Ihe Following item5 thai may be of interesi and we will be happy to discuss their impact on your specific situation in more detail. Reputation is everything Reputation 15 Sotnething to be cherished. A5 we have seen with some ca5e5 in Ihe past lew yea15 such as Oxfam and Kids Company, reputation can easily be damaged and it takes a long time to repair. The good news that Oxfam has been taken ovi of special measures hasn't hil rhe fronr pages in quite Ihe same way_ The Chariiy Commission conducied some r&search jusi before th& pandemic hit which showed trusi within Ihe charity Sector ha5 iTnproved Since these scandals hit and the enormou5 amount of chaiity work that h35 taken place in ihe pandemic is only going 10 have furthef Increased thai Irust_ Support for trustees The Charity Commission has produced some s mir)uie guides for rrvstees which can be found ai htt www. ov.uk overnrnent collections -minute. uide5-for-charit -trustees. Although not groundbreaking. these guides help trustee5 understand their responsibilities and cover tOPleS such as.. Charity purpose and rule5 Making d&cisions at a charity NaTraging charity Finance5 Nanaging conflias of inieresr In a charity what to send to the Charity Commission and how to get help Safeguarding in charities Salegu3rdiDg continue5 to be a focu5 by the Charity Commission who h35 recently published sotne guidance On 58leguarding in international aid charities. Safeguarding improvements have been tnade ITr 4 key areas.. Accountability to people they work with. including improved 53legu3rding policies and procedures. Organisational culture, such a5 the new tool for leader5 on develo and tnodellin ositive The employmeni cycle, for example the creation of Ihe Mi Dis sur perpetrators of sexual misconduci From moving around Ihe sector undeiecied. Reports 3Trd complaint5 mechani5rnS. Wlth impioved transparency and accountability ieflected by the increased number of safeguarding serious incident reports received by the Commission. in 2019 to stop Although Ihese arose from work wiihin iniernaiional aid charities, they are very applicable io Ihe wider sector. Better together - collaboration within the charity sector Working closely wilh other similar charilies, a network of branches. and/or pooling resources 10 work In a 5tnarter way is becoming increasingly key when setting a charity's strategy. It's about working together, helping each other, learning from each other, realising our strength5 and rea115ing the 5trength5 01 Others to be more effective, noi 10 meniion the poteniial posilive impacis Il could have on Ihe environmeni_ Similar charities can come together and create a powerful voice when It comes to lobbying government - and this can tnake a real diFference. Management Letter 2021 Page l io CRITCHLEYS SORP 2024 Now that seems like a long way itTto the future. but it will be here before we know it. The SORP making body has been formed with greaier emphasis oft represenration of view of 'users' as well as iechnical, regulaiory and academic voice5. We are expecting a draft SORP 50metitne between July 2022 and July 2023 Wlth the final SORP to be in place For periods comtnencing on 01 aler i January 2024. So. for a March year-end charity this will not impact the accounts until 2025. but an early read recommended to identify the itnpact5 on the comparative period. Related parties The Charity Commi55ion recently published a report about related party transactions not alway5 being transpareni. The Trusiees remain responsible for ensvring such disclosures are comprehensive and compleie. The Fundraising Regulator Fundraising has certainly been a challenge dvring the pandemic and the Fvndraising Regulator has been publishing regular update5 and guidaTrce to the 5ectoi a5 to how to run 58-e fund raising activitie5 during this time. These are definiiely worth a read lor any charity running fundraising event& ht www. re vi New Charities Bill announced in Queen's Speech On li May 2021, the Queen announced the introduction of a Dew Charitie5 Bill. This 15 a significant and ha5 been a long time coming for the Sector. The Bill has been designed to reduce the bureaucracy that charitie5 face and will make it easier for chariiies 10 change their governing documenis, sell Iheir land, deal wilh perm8Trent endowment lund5, and to merge with other charitie5. Charity annual return An annual return Is fequired by the Charity Commission for all registered charities in England and Wales. On 30 June 2021 Ihe Chariiy Commission vpdated the question docvmeni required ro be compl&ied during this proces5. Charities and Terrorism The Charity Commission has updated its charities and Terrofism which 15 designed to belp trustee5 latniliaiise themselves with the legal Framework which aims to piotect the UK frotn terrori5t abuse and understand how this affects charities. It provide5 summary information OD key aspect5 of the UK'5 cDunter-terioiisTr legi513tion and highlights how panicular provisions are likely ro affeci chariiies and Iheir work. htt www. ov.uk overnment ublicatlOn5 charities-and-terror15m com liance-toolkit-cha ter- Management Letter 2021 Page l li