2023-08-31-accounts - The Oxford School Of Drama Trust

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THE OXFORD SCHOOL OF DRAMA TRUST ACCOUNTS FOR THE YEAR ENDED 31 AUGU8T 2023 INDEX Pg98 1-5 Group Tru8tee8' report Independent 8uditors' report Consolal8d Slalemenl of financlal actlvlll88 Balance Sheet statement of Cashkn¥8 Notes to the account8 Income and expendlture account 10-11 12 13 14-24 25 Company No. 3638842 Registered Charfty No. 1072770

THE OXFORD SCHOOL OF DRAMA TRUST GROUP TRUSTEE8' REPORT Thi5 is the Twenty-fifth report of The Oxford School of Drama Trustee8 and covers the twelve months to 31 A[uSt 2023. REFERENCE AND ADMINISTRATIVE DETAILS Company number 3638842 Charity number 1072770 Regl•ter•d Offl¢• 8eaver Hou8e, 23-38 Hh0 Brldge Street, Oxford OX12EP. Bankor• Nation81 Weslmlnster Bank PLC. Oxford Audltor• Crit¢hleys Audit LLP, Beaver House. 23-38 Hythe Brkige Slreel, Oxford. OX12EP Prlnclpal ¥ddr•s• Sansomes Fami Sludlo8. Woodstock, Oxford, OX20 1 ER Tru•teg•lDiro¢torn Th8 tnistees of the Charlty are 8180 the company's dlrector8 for thè purpos88 of the Companie8 Act. The TN8tee8, who $eNed throughout the year unless olher•v18e 8taled, were.. N Macaluso A Millman E Fuller Ireslgned 8 September 20231 S Stephens F Feehan Iregigned 4 AprS12023) T Bal(Jwin Ire¥4qned 11 Decembei 2023) A By8m C A Bradley F Murr8y-Fu8nt88 M Ngild H Dan¢e lappoinled 4 Apnl 20231 G Upton {appointed 4 Aprll 20231 Princlpal Edward Hick8

THE OXFORD SCHOOL OF DRAMA TRUST GROUP TRUSTEES, REPORT ICONTINUEDI STRUCTURE, GOVERNANCE AND MANAGEMENT The Trust Is governed by the provisions of rts m0randUrn and articles of association and the accounts comply whh current statutory requirements and the Trust's governing document. The Trustee5 have the power to appolnt addition81 people as Trustee bjl any Trusleas such appointed shall only hold office until th8 following Annual General Meeting, where they can $8ek ffj•8lection. New Truste8s are provided with a comprehensive pack of Informat*M about The Oxford School of Drdma Trust, the conlenl of which conforms to the recommendallons of The Charity Commission. This includes.. Chanty Commisstran booklet CC3 The Essential Truste8." What you need lo know,, informatts)n on the responslbillti89 of Trust8es- rnemorandum and artlcles of association,. accounts for last th8 years incorporating Trustees, reports,. minutes of last three board meetings.. brief history of the School and chronology of significant events- organi9alKJnal chart,. Gurrenl 5chwl prospectus., schedule of datas for further meetlngs.. blographles of Trustee8 and dates of appointment., details of conlr8CtU81 obligations,. summary of Trust's insurance policies including trugteeg. Ihbility insurance; details of any litigation presently belng undertaken either by or agaln8t the Tru8t: delai15 of chanly's professional advisers, including solicltors, b8nkers, extemal auditors; pollcy documents, including Risk Management information, Health and Safely Policy, Equal Opportunillg8 Policy, Disabilrty Equalily Policy. Saf8guar(Jing Dignity & Respect Pollcy, Privacy Policy, Envlronment81 Pollcy. ICT Policy, Dlsclpllnary Policy, Grlevance Policy. The Trustees are In over811 control of the Trust and n8jer strateglc i8sue8. Day to day mana98menl of the Trust is d8legal8d to the Prlnclpal. K•y Manag•rn•nt Per•onnel Remun•ratlon The pay and remunerallon of the charlly's key management personn81 Is re-evaluated annually. Every &5 years the Tru8lees undertake a comp8rallve analysis of th8 pay and mun01a110n of the key management pet8onnel in 8lmllar organisalbns 88 a benchmark. OBJECTIVE8 AND ACTIVITIES The Oxford School of Drama Trust w85 founded In 1998 as a Company Llmf(ed by Guaranlae and a registered charity to traln students for the actlng professDn. The School's slralegy 1$ to offer an education, as well as vocallonal training. lo students from a wide range of social and edUtional backgrounds. For thig 930n it has a policy of Ilmiling th& Intake of students to the School to ensure a hlgh and constant level of support, both during and after training. Th6 lolal intake In September 2022 was 88 slLKlen18. The Trust has commilled and hlghly qualified leaching and admini8trallve staff. The School employs four full-time and four part-time staff and has up to thirty freelance tutors. The School 16 deemed Grade 1 'outslanding' by Ofsled and 'ex8mplary' by Trinrty College London. The Trust provides the following cour8eB: One Year Diploma Sn Actlng Course Three Year Dipbma in Acting course Sbx-month Foundal#Jn Course in Actlng

THE OXFORD SCHOOL OF DRAMA TRUST GROUP TRUSTEES, REPORT {CONTINUEO) PubllG Ben•flt The Trustees have complied with the duly in section 17151 of the Charilles Act 2011 to have due regard lo public benefit guidance published by the Charity Cornmission. The School aims is lo ensu that its courses are open to all regardles5 of their background through its participation in the Govemmenl's Dance and Drama Awards IDaDAI Scheme. The Scheme enable9 talented students to 8ccess financial assistsrs¢e to attend the Threa year and One year COUTses at the School. provided that they are under the age of 24 and from JU5eholds with a gross income of less than £g0.000. The amount of financial assistance students reN8 d6pends on thelr household income. Those In greatest need Iwilh a IK)u$ehold Income of les5 than £21.0001 pay nothing toward8 their course fee8 and can access a gr8nt to help with thglr Ilving costs. Those whose household income 18 £85.000 - £90,000 pay £7.175 for thelr coutse fees. a reductlon of £10,675 on the published rate. There 16 8 slKling scale of support for students between these Iwo in¢orne figures. Sludents aged over 18 years who have some 1888 lo pay for their course can al80 acces5 an Advanced Leamlng Loan of up to £7,395 towards the course f888. Additlonally, the school has Ils own bursary prov181on includlng Sp8crf bur8anes earmarked for the Foundation Cour88 aimed al anyone wf(h a household income un¢Jer £35k. and the One-year Ctrjrse aimed at anyone over the age of 24 not eligible for Dad8 Wrth a hou8ehold Income under £35k. These measures along wlth in¢re8slng the available 8udrtion walvefs are aimed to help ffjmove financlal bathers experienced by Some appll¢gnts and Students. In addition lo these $¢hem88 the school ha8 rt8 own Hardship Fund for those students exper18ncing financlal drflicuttie5 and 1$ curranlly aiming to exp8nd tts bursary provision through increased development and fundraising aGtivrty including applications lo Trust and Foundations. The h0o1 outreach work has includ8d workshops and Q&A's both online and in person in the fo ol workshops targeted at under-represented gfOilPS. Thls work is undertaken in partnershSp wllh staff, 8tudents, and graduate actors. It Included Ilve sessions that ranged from, Ihe FDS Tr8lnlng Fair ILeeds} 500+, lo NYT- P18ying Up (London) 50+ Thls year we have 81so held regKinal audlllon8 in Donc•sler ané Nawcaslle. Several smaller activitles were also organised both online and In person In th8 fomi of presentations 81 schools and Colleges, careers 8venls, Dr8m8 groups. open days and worksws for those interested in drama training. As part of a partnership wSlh the National Satufday club we conlinued to offer free weekly drama Glasses lo local children from low-income families. Then as part of a louT to local schools we offered workshops on Shoke$peare. Publlc p8rformance$ took place al venues including The North W811 Ioxfordl, The New Diorama (London), Soulhwark PLqyhouse (London). Lelcesler Square Thealre (London). the local Oxfordshire community and 8 number of outdoor locations. In total playing lo an increased public audience of 3CwJO. ACHIEVEMENTS AND PERFORMANCE The graduates from the school have contlnued to have a suc¢essfiJl ye8r workSng on a range of productlons. Theatre credits include To Kill a Mockingbird Iwest Endl, Vanya IWe5t End}. Lyon8sse Iwesl Endl. Glass Menagerie (West End}, Standing At The Sky's Edge INalional Theatrel,My Brillianl Frlend [Natn81 Theatre}, Home, I'm Darling INatK)nal Theatre), Pandemonium (Soho Thealrel,The Merchant of Venlce 1936{RSC}. Two PaleslinLgns Go Dogging (Royal Courtl, She Stoops To Conquer Iorange Tree), Arabian Nuhts (Bristol Old Vi¢ Theatre), and A Mirror IAlmeid8 Theatre) amongst others. On screen they could be Seen as significant or lead tharacters in Apple Tv's Slow Horses. Hilack,. Nethix's Queen Chadolle, Shadow and Bone. Umbrella Factory, The Witcher.. Blood Origin, The Crown., BBC'S The Clèaner, Call the Midwile, Eastenders.. ITV'S Granlchester, Emmerdale.. Sky's Brrtannia: HBO'S Gangs of London.. Paramount's Halo,. Sarah Pooley's film Women Talking, Ridley Swll's Napoleon. The graduating Three Year Course within 2 months of graduating 17 out of 20 svJned with agents {85Phl 18 out of 20 worked professionally or signed with an agent or both (W)%1

THE OXFORD SCHOOL OF DRAMA TRUST GROUP TRUSTEES. REPORT (CONTINUED) Students and graduates winning or nominated for awards thls year include- LIZZ AnnB Most Promising Newcomer Critics circ Theatre Awards. Best West End Debut The Stage Awards Claire Foy ScTeen A¢lor$ Guild Awards IUSAI outstanding performance by a Gast in a motion picture. British Independent Film Awards - Best Supporting Performance 8imuna Memon Olivier Awards- Actress in a supporting role in a musiGal A¢mee Lou Wood wins BAFTA EE Rising Star Award Yasemin Junqueira IThird Year student) finalist In the Student Spotlight Awards. Emily Kathryn and Nye Occomore (Third year sludants) finali518 in BBC Carlelon Hobbs Award Activltles The School's Studanl Hardship Fund conllnued lo supwrt those in fln8ncLql dlfflculty. The number of students needing support continues to in¢ffja8e. During the Autumn lem and Spring term twenty-slx award5 were mad8 lolalllng £6,200. Plon$ for th• futurn There were several key new appolntmenls made over the year Including the appolntmenl of a new Head of Acting, a new Head of the Foundallon Course and Outreach, and a new Artlsllc Assoclale. The eontinualion of an in-depth review ol the curriculum continued having slightly paused to allow for the new appointments but it has resutted In the crnalion of new course books, a revised student Charter. and the Iri811ing of a new assessment process. The Artistic Associate role is seen as a key 8ppoinlmant in helplng the school dlversify ils choices of text, improve the dramaturgical offer lo students and help wilh the ¢re8llon of a new collaborallve framework that builds on the 5th001's ethos of collaboration. The school has also worked on developing a new fundraising strategy which included bringing In a consultant lo search and apply for variou8 Trust and Found81ion¥, There was also some restructuring around Ihe adminlstrative team. The Five-year plan focusses on four key area5 Oiversrfying, Safely, The Slu¢Jenl Experienca and Currlculum and addlllon81 chang9$ this year to help Smprove these areas indude.. EDI training for st8ff and students through work wbth Tonic. A compTehenslve 2417 service of support for students (Sludenl Assistance Programmel, An expansion of the outreach work including developing a new ICPDI programme for teach8rs and reinslaling regional audltions (including Doncaster and Newcastle), Introducing new open Wedn85day curriculum thread as part of an enrichment type progr8mm8, New scene Study thread that expands an¢J diversifies the cholces of text. Increased number of performances. Introdu¢ing new industry pr8Ctilioners lo OSD alongside developing current staff Applying and succeeding in gaining funding lo improve our bursary provlsljn. Other changes implemented over the year included the appointment of new Iruslees. the appointment of new co-chairs, the ¢realion of various new Board Sutpcommitlees. the updating of various FX)licie5, the appoinlmenl of new leaching staff {including a contlnued emphasis on developing new lulor5 of colour), the creation of new online short courses and rebalancing of the curriculum. Moving ft)rward it's hoped other areas will begin lo be addressed around fundraising. reba18ncing th& curriculum further, improving facilities. introducing a new friend's scheme, improving communication. building awareness of Ihe school, looking at new partnerships. expanding outreach and short courses, and making the school more accessible to more people regardless of background. As the educational landscape is shifting11 Is hoped through this work the school can build on its reputation but set new prionties lo create an even Stronger and sustainable future that allow tho Trust lo continue lo provide an outstanding training for a small number of students from diversè backgrounds.

THE OXFORD SCHOOL OF DRAMA TRUST GROUP TRUSTEES, REPORT (CONTINUED) FINANCIAL REVIEW The charity achieved a Surplus of £19,350 In the y&ar. This Is made up of £8,981 in nstrICted funds and £10.369 in restricted funds. R•serve• As al 31 August 2023. the charity's total funds were £1.264.454 of which £55.012 w89 represented by restricted funds and £254.454 by destrjnaled fvnd8 (equal to the net 0k value of the ¢harbty's b8asehold buiklingsl, leaving a ba18nce of £954.886 on general funds. Thè Tru51ees conskler that r88erves ideally need to be 8ufflclenl lo cover exp8nditure for a perlod of six months. This would equate lo approximately £600,000, A8 at 31 August 2023, after h8ving designated funds lo reprosenl the investment in the new Theatre and Libraryloffice Developmenl and for the 8am Development work8. there was a balance of £954.886 on general funds. £259,660 of this was represented by the investment in Oxford School of Drama Limrted leavlng a balance of free reserves of £695,220. Rl•k Management Stal•m•nt The Trust maintains risk management and other pollcies as li8ted in the Annual Retum. The Trustees consider the princip81 risks and uncertainties affecting the charity are., Potential future changes in OADA ID8nc8 and Drama Awards} and ALL IAAIv8nced Leamer Loan) funding arrangements. Recruitment and retention of good quality staff and tutors. Is8ue8 that may harm's the Charity repulatlon. The rl8k management policy has baen expanded to cover tho are88 of risk recommended by the Charity CommlssKJn'. governance and management, oper811onal, hnancial, environment and extemal, law and regulation compliance. In addil•Jn, specific poli¢lgs cover complaints handling and Gonflicts of inleresls. The Company keeps ri8k management under Continual review. and conducts a formal risk review once a year, which is dSscussed and approved by the Trustees. Mapr rlsks are revlewed 8nd assessed. and control 8y31ems are establi$he¢J to manage those risks. STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees are responsible for preparing the Annual Report and the financial 51alements In accordance with applicable law and regulations. Company law requires the trustees lo-prepare financial Statements for each financi81 year-. Under that law-the Trustees hav8 elected to prepare the financial statements in accordance wllh United Kingdom Generally Accepted Accounting Practice (United Klngdom Accounting Standards and applicable lawl. Under company law th8 Trustees must not approve the financial slal8ments unless th&y are satisfied that they giva a true and fair view of the State of affairs of the ¢harily and of the incorng resources and application of r850urces of the charrty for that period. In preparing these financial Statements, the Iru5teBs arg requirad to.. select surtable accounting policies and then apply them consistently.. make judgements and aonting estimates that are reasonable and prudent., prepare the financial statements on the going concern basis unless il is inappropriate to presume that the company will contlnue in operation. The trustees are re$ssible for keeplng adequate accounting rewrds that are sufficient to show and expL9in the chanty's transactions and disclose wrth reasonable aGcuraGy al any time the financial posrtion of the company and enable them lo ensure that the financial staternent5 comply with the Companies Act 2006. They

THE OXFORD SCHOOL OF DRAMA TRUST GROUP TRUSTEES, REPORT {CONTINUED) are also responsible for safeguarding the assets of Ihe tharity and hence for taking reasonable ste for the prevention and detectn of fraud and other Irregularlties. So f8r ag the Trustees are aware, there is no relevant audrt information linfomiation needed by the company's auditor5 in connection with preparlng their report) of whh the (¥Jmpany's audrtors are un8ware', and Each Tru9tee has tsken all the steps that he ought lo have taken as a dlrector in order lo make himself aware of any relevanl audit infomiation and to establish that the wnpany's audrtors are aware of that inf0mlal. Thls POrt Ikls been prepared In accordance with the Small Comp8ni88 Regim8 under S8Ctlon 41912} of Ihe Companies Act 2006. Thls rep)rt was approved th8TfUSteeson................. .Neild IT-rosteej

INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE OXFORD SCHOOL OF DRAMA TRUST Oplnlon We have audited the financial statements of The Oxford School of Drama Trust Ithe "Ch8rrtfl for the year ended 31 August 2023 which comprise the Consolidated Sl8tement of Financial Activities, Balance Shaels, the statements of Cash Flows, and notes to the financkgl statements. Including a summary of significanl accounting wlicies. The financial reporting framework that has been applled in their preparation 15 applicable law and Unrted Kingdom Accounting Standard8. including Fin8ncial Reporting Standard 102.. The Financial Reporting Sl8ndard applicable in the UK and Republic of Ireland (Unfted Klngdom Gener811y Accepted Accounting Praclicel. In our opinion, Ihe tinancial statements., give a true and fair view of the slate of the group and Charlty's affairs 88 at 31 August 2023 and of th group's income and expenditure for the year then ended-, have been properfy prepared in accordance with United Kingdom Generally Accepted Accounting PractiC8', have been prepared in accordance with th8 raquifemenls of the Companles Act 2006. B4s18 for oplnlon We conducted our atsdit in accordance with InleTnatlonal Standards on Auéiling {UKI {ISAs IUKII and applicable law. Our responsibilities under those standards are further descrlbed in the ALsditor'5 resp)nsibilitl88 for the audit of the financlal slalements section of our report. We a independent of Ihe Charity in accordance wllh the ethical requlrement5 Ih8t are relevant lo our audit of the financial slat&menls in the UK, including the FRC'S Elhlcal Standard. and we have fulfllled our other ethical SpOnSIbl1111eS in accordance with these requlrements. Wg believo that tho audrt evldence we have obtained is sufficient and approprle to provide a b8sis for our oplnk)n. Conclu8lon• rnlatlng to golng conc•rn In auditing the finan¢lal 9t8tements, we have concluded that the Trustees, use of the going concem basis of accounting In the preparallon of the financSal slatemenls is appropriate. Based on the work we have perfomiad, we have not identrfied any material uncertainties relating lo events or C4)ndilions that. individually or colleGtiv6ly, may ca51 significant doubl on the Tnjst's abillty lo continue as a going concern for a perKMJ of al least twelve months from when the finan¢ial Statements are authorised for issue. Our resrM)n8ibilities and the re8pon8lbllitles of the Trustees with respect lo going con¢em are descrfbed in the relevant secllons of this report.

INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE OXFORD SCHOOL OF DRAMA TRUST (CONTINUED) othor Inlomiallon The Iruslees are re$pinsible for the other information. The other infomialion comprises the infomiation included in the annual r6port other than the financial statements and our audilorfs report thereon. Our opiniDn on the flnan¢bl ststements does not cover the Other information and, except to the extent olherwlse explicrtly staled In our rep)rt. we do not express any fomi of a8surance conclusion Ihereon. In connectlon with our audit of the financial statements, our re8pon8ibilily Is to read the other information and, In dothg so. consider whether the other information is materially inconsist8nt with the financial statements or our knowledge oblained in the audit or otherwlse appears lo be malerlally misstated. If we identify such material inconsistencies or apparent material misstalemenls, we are requlred lo deternine whether there is material misslalement In the financial statement8 or a malerk31 misglatemenl of the other infornation. If, bas8d on the work we have p&rfom8d. we conclude that there 18 a material mlg$latemenl of this Other informatlon. we are requlred to report that fact. We havè nothing to rgport in this regard. Oplnlonj on olh•r matt•rn prnscrlb•d by the CompAnlo$ Acl 2006 In our oplnky), based on th8 Wort( undertaken In the course of the aud. the infom)alion given in the trustee$, report {incorForaling the dire¢toryJ' report) for the fnanclal year for which the financial sl8lemenl$ are prepared is conslslenl with the financlal slat&menls,' and the Irustees, report lincorwrating th8 dlrector8' report) hève been prepared in accordance wkh appllcable legal requlroments. M•tt•f• on whlch w• ar• rnqulred to rnport by oX¢•Ptlon In the Ilghl of the knowledge and und8r8tandlng of the company and Ils envlronment obtained In the course of the audh, wé have not klentlfled malerfal mi881alernen18 In the tru8te8s' report. We have nolhlng lo report in respect of the followSng matter8 in relation lo which the Companies Act 2006 requir88 us lo report to you if, In our oplnlon.. Sufficient accounllng records have not been kept., the financial statements are not in agreement with the accounting re¢ord5 and relums,. certain dlsclosures of Irustee5' romuneration 8pecifieé by law are not made., or we have nol obtained all the Infomiation 8nd 6xpl8nalions necessary for the purposes of our audit. the trustees were not enlilled lo take advantage of the small companies, exempl)n8 in preparlng the diffj¢tors' report and from the requ1ment lo prepare a slralegio report. Responslbllitl88 of th• trusts•J As explained mor8 fvlly in the trustees, responsibilities statement Iget out on page 51. tho trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and falr view, and for such intemal control as they detemiine is necessary to enable the preparation of financial statements that are free from material mis51atement, whether due to fraud or etror. In preparing the finan¢ial stalemenls, the Injstees are responsible for assessing the Charity's ability to continue as a going concern, disclosing, as applicable, rnatters related lo going concem and uging the going concem basis of accounting unless the trus188s either intend to liquidale the Charity or to cease operations, or have no realistic altemalive tyJt to do so.

INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE OXFORD SCHOOL OF DRAMA TRUST ICONTINUEDI Audltor's r•sponslbllllles for th• audit of the financial •tst•m•nts Our objectives ale lo obtsin ra8sonabl8 assurance about whether the financial statement¥ 8$ a whole are free from material misstatement. whether due to fraud or error, ané lo issue an auditor's repjrt that Includes our opinion. Reasona& assurance is a high level of assurance, but is not 8 guarantee that an aud(t conducted in aGcord8nce with ISAS IUKI will always detect a material misslalement when exists. Misstatements can arise trom fraud or error and are Conser8d malarial if. individually or in the aggregate. they could reason8bly be exp8Cted to Influence the economic dècisions of users taken on th8 basB of these financial statements. Irregularities. ClUdIng fraud, are instsncas of non-complianco with laws and regulat5. We design procedures in line with our responsibilities. outlined above, lo delect malerial mlsstalemenls in Pect of irregularilie5. Including fraud. The extent lo which our procedures are cepable of detecting irregularities, including fraud, is detailed below: the engagement partner ensured that the engagement team colloctively had the appropriate competence. capabilitie8 and skills lo identlfy or recognise non-rAimpliance wrth applicable laws and regulations.. W8 id8nlifled the laws and regulations appllcable to the wmpany through discussions whh dlrectors and other management, and from our knowledge and experience: we focused on 8pecMlc law8 and regulations lCh we considered may have a direct materkql effect on the finan¢lal statemnts or the op8ratlon$ of th& company. we assessed the extent of compllance with the laws and regulatlons idenlrfled above through meklng enquiries of management and insp8cllng legal corffjspondence where applicable., and identified laws and regulations were communicated withln the audit168m regularly and the team remained alert to instances of non-compliance throughout th& audrt. We 8sses8ed the suscepllbilrty of the company's financlal statements lo materlal mi8Statement, including obtaining an und8rstanding of how fraud rnight occur. by.. making enquiries of management as lo where they considered there wa8 8usceptibility to fraud. thelr knowledge of actual, suspected and alleged fraud; and considering the intemal controls in place to mitig3te risks of fraud and non-compllance wlth laws and regulallons. To address the risk of fraud through management bias and override of contro15, WO.. perfomied 8nalytlcal procedures to identify any unusual or un8xpected reLalionships-, tested N)urnal entries to idenlrfy unusual transactions- asses88d whetherjudgements and assumptions made in det8miining the accounting estimates were indicative of potential bias,. and

10 INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE OXFORD SCHOOL OF DRAMA TRUST (CONTINUED) investigated the rationale behind snIficant or unusual transactions. In response lo the risk of irr8gularMles end non-compliance wrth law8 8nd regulations, we desed procedures which includ8d, but We not limited lo.. 8gr8elng financial statement disclosures to underlying supporting documentation., reading the mlnules of meetings of those charged wNh governanc8'. enquiring of manag8ment as to actual and potential litlgation and clalms; reviewlng relevant correspon(ience. There ar8 inherent limitalK)ns in our audit procedu$ de$crib8d at)ove. The rrKJre r8moved that law6 and regulations are from financial transactions. the less likely il is that we would become aware of non-compllance. Auditing standards a150 limit the audit procedures required to identify non-compllance wilh18ws and gulations lo enquiry of the directors and other managernenl and the Inspectlon of regulatory and legal correspondence, if any. Material misslalemenls that arise due lo fraud can be hard8r lo detect than those that arise from emr as they may involve deliberate concealment or collusion. A further description of our r88ponsibilrtie5 for the audlt of the financlal statements is bcaled on the Flnanclal Reporting Council's w8bsit& at.. www.frc.org.uklauditorsr8sponsibilities. Thbs descTlpllon lomis part of our audttorfs report. U•0 of our rnport This report is made solely lo th8 Charity's members. as 8 body, in accordan with Chapter 3 of Part 16 of the Companies Acl 2006. Our audrt work has been und8rtaken 80 that we might slale lo the Charity'8 membgrs those matters we are required to 5ts1e lo them in an auditor's report and for no other purpose. To the fullest extent permilled by law, we do not accept or assume resp)n$ibilily lo anyone other than the charY'S memb8rs as a body. for our audit work, for this reFKJrt, or for the opinions wo have formed. Robert Kirtland Senior Slalutory Auditor for and on behalf of Crilchleys Audit LLP Slalutory Auditor 8eaver House. 23-38 Hythe Bridge Street. Oxford, OX12EP

11 THE OXFORD SCHOOL OF DRAMA TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Including Incomè and Expendlture Account) FOR THE YEAR ENDED 31 AUGUST 2023 Total Funds 2023 Totsl Funds 2022 Unre8trlcted Rostrlctod Fund8 Funds INCOME FROM: Donations and Legacies 98,713 98.713 48,250 Charitable •ctlvltle• Drama School 1,466.240 1.466.240 1,370,885 Invo•tmonts - interest receivable Total Incomo 57 LII 1419 790 EXPENDITURE ON. Co•t• of ggnoradng fund• Fundralsing costg 24.487 24,487 Charltable actlvltlo•: Dram8 School Tot•1 •xp•ndlturn 43 Net In¢om•ll•xp•ndlture) 12S,535) 44,885 19,350 112,6181 Tran8f6r8 behveen fvnd8 14 Net movement on fund• 8,981 10,389 19.350 112.6181 R•conclllatlon ol funds; Tol81 fvnds brought fop•vard Totsl fund• cafflod loard

12 THE OXFORD SCHOOL OF DRAMA TRUST CONSOLIDATEO STATEMENT OF FINANCIAL ACTIVITIES Ilncludlng Income and Expendituro Accounll FOR THE YEAR ENDED 31 AUGUST 2022 Icomparatlves) Total Funds 2022 Unrgstrlcted R•strtct•d Funds Fund¥ Not• INCOME FROM: Donations and Lega¢ies 48,250 48.250 Charltable activi11o9 Drarna School 1,370,885 1,370,885 Inv•stment8 - int&rest receivable 655 65 Totsl Incomo 1371540 450 1419 7 EXPENDITURE ON; Chadtable a¢tlvlllo8: Drama School Totsl •xpondllurn N•1 Incomel{•xp•ndltur•l 3,108 115,7261 (12,6181 Transfer8 between fvnds 14 Net mov•m•nt on lund• 18.358 (30,976} 112,8181 Roconclllatlon of fund•; Total fund8 brought fornvard Total lund• urrf•d forward

13 THE OXFORD SCHOOL OF DRAMA TRUST (company no: 3638642) BALANCE SHEETS AS AT 31 AUGUST 2023 Group 2023 Trusl 2023 Group 2022 Trust 2022 FIXED ASSETS Intangible assets Investments Tangible assets 259,660 302,935 259,6PAI 26 500,000 261536 263 521.196 521,196 566,155 758,073 CURRENT ASSETS Debtors Cash at bank and In hand 64,131 1490 908 64,131 52,863 203,436 10 1.555.039 1,542.262 1,532.629 1,462.173 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR NeT CURRENT ASSET8 758.035 743.258 691,726 661.8e4 NET A88ETS Fund•: Unre8lricted funds.. General fund8 De8lgnated funds 967,663 254,556 954,886 254,556 959,940 253.298 1,121,996 253,298 13 Re8lrlcted fund8 14 44 These account ved and aulhorised for i88ue by Ihe Tru51ee$ on D i YSTEE)

14 THE OXFORD SCHOOL OF DRAMA TRLIST STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023 Group 2023 Tru81 2023 Group 2022 Trust 2022 Nel Gash lusod In)Iprovlded by op•rntlng a¢tlvltlo8 95.019 308,418 150,6021 118,947 Ca•h flows fmm n•11n9 •ctlvltlo• Purchase of tangible fixed asse18 Pureha58 of subsidiary 123,877) 129,0241 11.2201 11,2201 Ca•h (used Inl Inve•tlng acllvltles 183.8771 189,0241 161,220} 161,2201 {Decr•J•o}IlncreaJe In c•ih and c••h •qulval•nts In th• y•ar 11,142 219,394 1111,8221 55,727 Cash and cash equlval•nts •t th• b•glnnlng of tho y•ar 479 766 a1 L737 591588 1203010 C••h ind cash oqulval•nt• at the ond ol the yaar C••h provlded by operatlng a¢tlvltle•: Nel movement In funds Oeprecialion Amortisalion and Impaimienl 1lncreaselldeca$e In debtors Incr88s8lldecrease} in credRor8 19,350 (155,4831 112.8181 25,561 25,561 24,781 43,276 240,340 43,276 111,2881 139,305 17.2721 (136.1041 18100 fjQL95 49,000 23,787 Net cash lused Inllprovldod by op•ratlng actlvltl•s Cash and ca•h •qulvalonts ¢on•l•t of: Cash in hand Notice d&posits (les5 than 1 year) 1,400,818 1.388.041 1.391,955 1,170,926 87

15 THE OXFORD SCHOOL OF DRAMA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023 ACCOUNTING POLICIES G&n•ral Informatlon This Company is a Chartlable Company Limited by guarantee Incorporated in Unlled Kingdom. Oxford School of Orama Trust is a public beneflt entity. operating from Sansomeg Fam studios, Wood¥toGk. Oxford. OX20 1 ER. b) Basis of proparatlon The accounts have been prepared under the hi5toriG81 cost convention and in accordan with the Charities (Accounts and Reports) Regulations and Statement of Recommended Practice "Accounting and Repjrting by Charilles" (FRS 1021 and Ihe Companies Act 2006. These financial sl8temenls have been prepared in accordance with Financial Reporting Standard 102 'The fin8ncl81 Reporting Standard appllc8ble In the UK and RepubliG of Ireland. There are no unc8rtain118s about Ihe ¢harlty's ability to contlnue as a going con¢em. The ¢on$olldated accounts Included the result of the Trust and its subsidiary The Oxford School of Drarna Llmlted from the dale of acquisllk)n. No parent company Statement of Finan¢lal Actlvilies 1$ presented 88 pemiitted by s408 of the Companie¥ Act 2006. The n81 movemenl in funds attributable to the parent company before Impaimient is £1155.483I12022.' £54,796). Income Income Includes fees for courses organised by the Trust, 0680claled fees, and deposll interest. Income 18 included in the Income and expendlture account in the year lo ¥thlch the income relates. Income received in the year r8latlng to lemis 8lartln9 after the year end 1$ defer and included as income in the accounts covering the per to which it relates. Expondllurn Expendlture Is recognised when a liabllily Is Incurred. Charthble activltles include expenditure assoclated with the running of the courses provided. Thls include8 toth the direct costs and Support costs relating lo this activity. Governance costs include thos8 incurred in tha govemance of the charity and it8 a¥set¥ and are prlmarily a550¢iat8d with constitutional and statutory requirernenls. Support costs include central functlon. All of thes8 have been allOted to the princip81 activity of the charity-

16 THE OXFORD SCHOOL OF DRAMA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDeD 31 AUGUST 2023 ICONTINUEDI Funds stfucture The charrty has a number of reslficled income funds lo account for situations where a donor requires that 8 donation must be spent on a particular purFX)se or where funds have been raised for a specific purpose. All other funds are unr8stri¢ted income fvnds. The Trustees have set up the deslgnated funds for the purpos6 of funding a new theatre. the libraryloffice development and barn development works. Int•nglbl• as••t• and amortiution Intangible assets are orlglnally racognised as the valu6 of goodwill upon thelr purchase. Amortisalion is provided to writa off the goodwill over 115 8xp8Cted useful economi¢ lrfe of 10 years. Flx•d A•s•t Invo•tm•nt• Investments are held al cost less any Impalrment in value. Following the latsnsfer of trade from the subsidary company to the Tnjsl impaimlent has been processed so that the cost less impalrmenl matches the goodwlll on cons014t10n. h) Tanglblo Ilx•d assots and dopr•clatlon Depreciatlon 18 provided lo write off the c05t of tangible flxed a88ets over thelr expecled useful lives al th8 followlng rale5. Office equipment Leasehold improvements -25% Length oflease Operntlng loa••8 Renl818 due under operating leases are charged lo the Stal8ment of Financial Activities on an a¢crual$ basis. Ji P•n•lon Colts The charity operate$ 8 defined ¢ontritrJJlion ponsDn scheme. Contrlbutions are recognised as an expen¥e when they fall due. k) C•¥h and Gash equlvalonts Cash and cash equivalents incu¢Jes noli¢a accounts with a maturity of less than one year. INCOME- OPERATION OF DRAMA SCHOOL Trust Limitsd 2023 2022 Course fee8 Less: bursaries awarded Audition fees Box office sales student transport Other Income 1,401,027 134,5161 19,680 14,266 42,280 1,401,027 1,296.435 134,5161 124,0001 19,680 20,372 14,266 9,660 42,280 42,273

17 THE OXFORD SCHOOL OF DRAMA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023 (CONTINUED) CHARITA8LE ACTIVITIES Trust Llmlted 2023 2022 A¢tlvlty.' Operatlon of drama school Sl8ff Depreckqlion Amortisation Direct Cos1$ 436,883 25,561 43,276 714,976 436,883 25,561 43,276 714.976 395.449 24,781 43,276 649,322 Support Costs 306 312 421 319 580 SUPPORT C08TS Trust Llmltsd 2023 2022 Leg81 and other fees Finance General office Premises Govemance costs - audrtors, remuneration 2,173 2,613 19,852 274,264 2,173 6,575 19,852 274,264 25,657 2,923 25,534 255,771 3,962 064 In addrf(ion the audltors received £1,824 {2022.' £2.6911 for other 8eThlce8. 8TAFF COSTS (EXCLUOING TUTORS) 2023 2022 Salaries 8nd wages Employers national insurance Pension costs 390,262 35,699 345,864 33,175 The average number of employ885 during the year was 812022.- 91. 2023 No 2021 No Number of higher paid employees in bands of- £60,001- £70,000 £70,001- £80,000 The charity's key management personn81 remuneration in the year (including employerfs nati)nal insurance and pension 515) was £163.55712022'. £156,684).

18 THE OXFORD SCHOOL OF DRAMA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023 ICONTINUEDI INTANGIBLE ASSETS Goodwlll on consolld•tion Co8t or valuallon Al 1 September 2022 At 31 Augusl 2023 Amortlsatlon At 1 September 2022 ProvNJed in year DisFM)8als 129.829 43.275 At 31 August 2022 Net book •mount At 31 August 2023 At 31 Augu8t 2022 100% of shares In Oxlord Sthjol of Orama Llmrted IOSDI were purch88ed on 13 September 2019 for £380,000 in cash and deferred conslderatlon 01 £140,000. The goodwill was c81culaled 88 conslderalion1£g30,CM)01 less n81888e18 of OSD at the date of acqui8ltion.

19 THE OXFORD SCHOOL OF DRAMA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENOED 31 AUGUST 2023 (CONTINUED) INVESTMENTS Shares In •ub•idi•ry undertaklng Cost At 1 September 2022 and 31 October 2023 Impaimient At 1 Septemb8r 2022 Impainnent in the year At 31 August 2023 Not book valu? At 31 August 2023 At 31 August 2022 The Oxford School of Dram8 Llmltod IOSDI 18 a wholly owned 5ub8idlary l¢ompany numb8r: 19734521. OSD'S reglstered offjca 18.. 88aver House 23-38 Hhe Bddge Strèèt Oxford OX1 2EP OSD provlousty undertook the foundation cour86 lof Oxford School of Drama durlng the yèar but now h88 minlm81 activrty after the operatlon of the foundation cour88 wa8 transferred lo the Trust. A 8umm8ry of its Iradlng re8uII8 and net 8S6els for Ihe year18 sPK)wn b81ow. 2023 2022 Proflt and1089 account Tumover Cost of $ale8 365,072 Gros8 profft Administrative expenses Other intere51 receivable end simllar Income Taxation 240,193 1197,1591 114 15,1911 1,669 Nel incorne for the year Balance Sh••t Fixed assets Current assets Current liabilrti88 5,147 226,216 12.777 Net ass8ls l income and expenditure for the subsidiary during the year is included within th6 consolidated stalemeftt of financial activrties.

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21 THE OXFORD SCHOOL OF DRAMA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023 {CONTINUEDI DEBTORS Group 2023 Trust 2023 Group 2022 Trust 2022 Trade debtors Prepayments and #ccrued income Amounts owed by group undertakings Other Debl¢rs 41,575 22,556 41,575 22,556 23.755 27,296 20,380 27.296 155,760 10 CASH AT BANK AND IN HAND Group 2023 Trust 2023 Group 2022 Trust 2022 Current Account Deposits & C83h 52,438 41,948 127,029 108.966 11 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2023 Tru¥t 2023 Group 2022 Truit 2022 Tr8de Cffjditors Olh8r creditors Other taxation and 80Ci81 security Accruals and deferred income Deferred Conskleretton 39,206 88,400 9,885 661.513 39,206 88,400 9,885 661.513 13,383 105.704 10,625 651,211 7,811 101,800 10,625 620.273 12 DeFeRRED INCOME Group 2023 Trust 2023 Group 2022 TruBt 2022 Balance a5 at 1 September 2022 Amount released lo income Amount deferred in year 608,157 S77,219 568.910 337.126 {608,1571 1577,21 g} 1568.9101 1337.126) 630 618 608 157 577 219 Balance as al 31 August 2023 Oeferred inGome comprises income In advance for the following year's fees.

THE OXFORD SCHOOL OF DRAMA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023 {CONTINUED) 13 DESIGNATED FUNDS Loasehold Improvom•nts Group and Trust A8 at 1 September 2021 Net expenditure Transfer from general funds 247,406 (21.108> As at 1 September 2022 N8t expenditure Transfer from general funds 253.298 {21,970) 228 As at 31 August 2023

23 THE OXFORD SCHOOL OF DRAMA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023 (CONTINUED) 14 RESTRICTEO FUNDS Curront yoar A5•t Sgptembgr Income Expendlturn 2022 A8al August 2023 Transfer Student Hardship Bursariè8 Mhairi Armstrong 8ursary Funrj A.L.L Bursari88 Garfield We51on Foundation 62,165 19,633 2,383 18.699) 115.516) 67.583 2,383 119,sY)5) 59,080 143.1291 (3.9541 Tot81 Provloug year A8at Sfjptgmber Incomg Expendllure 2021 A•at Augu•t 2022 Transfor Sludenl H8rdshSp Bursarl08 Mhalri Armslrc•i9 Bursary Fund A.L.L 8ursarl6$ Gartleld We81on Foundation 68.187 2,383 15,340 {21,9621 600 62,165 2.383 110.2011 32.910 {42,0141 16001 {19.905) Tot81 Mhalrl Amstrong Bursary fund Is moni88 recelved lo be used for student hardship. The H8rd3hip Fund 18 moni8s received lo be u8ed for student hardshlp. Advanced Leamer Loang - 8ursary fvnds available lo those students who have Advanced Leamer Loans. The Garfield Weston Foundatlon fund Is for talented 81udents facing 8ub¥l8nlial financlal hardship. 15 MEMBERS, LIABILITY The Trust is limited by guarantee and does not have a share capitsl. The rnembers have undertaken lo contribute a sum, not exceeding £1 each. to the assets of the trust in the event of rt being wound up.

24 THE OXFORD SCHOOL OF DRAMA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023 (CONTINUED) 16 ANALYSIS OF FUNDS BALANCES BETWEEN THE NET ASSETS Current year D051gnated G•noral Re8trl¢tsd Totsl 2023 Group Fixed assets Net current assets Creditors.. amounts due over 1 year 254,556 266,640 701,023 521,196 756.035 55.012 Total Tru$t Fixed a8sets Nel r#Jrrant 89S81s Creditors- amounts due over 1 year 254,556 266,640 688.248 521,196 743.258 55,012 Total De•lgnat•d G•n•ral Ro•trl¢l•d Totsl 2022 Group Flxed a88818 Nel current assets Credltor8.' amount8 due over 1 year 253,298 312,857 647,083 586,155 691,726 44,643 Total Dmlgnatsd G•n•ral Re•lrlct•d Totsl 2022 Tr1 Fixed assets Nel current assels Credllors: amounts dua over 1 year 253,298 504.775 617.221 758,073 681,864 44.643 Totsl 17 TRANSACTIONS WITH RELATED PARTIES As at 31 August 2023, Oxford School of Drama Llmlted Isubsidaryl owed the Trust £nll 12022: £155.760) A Byam ITrusleel was paid £539 12022: nil) for professional services provided In the year which 15 P8miilled by the Gharity's Memorandum of Association. No other trustees weived any mUneration in erther y8aT. No trustees recelved any reimburaement of expenses in either year.

25 THE OXFORO SCHOOL OF DRAMA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2022 ICONTINUEDI 19 COMMITMENTS UNDER OPERATING LEASES at 31 August 2023 the total of th8 fijture mlnlmum lease payments under non-cancel18ble operatlng leases 58 as follows.. 2023 Land18ulldlng 2022 LandlBuilding Not later than one yoar Mole than one year and1086 than flve Over five years 194.608 196,151 194,608 390,759 Total Amount8 Paid in the yaar by the group under the18ases totalled £195.024 (2022.. £180.454).

THE OXFORD SCHOOL OF DRAMA TRUST DETAILED UNRESTRICTED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2023 2023 2022 INCOME Coutse fees Audition fees Box office sales Student transport Grft-aid donation from gubsidiary Other income Interest received 1,401,027 19,680 14.266 42,280 17,875 23,503 944,935 15.669 9,660 26,135 57,335 24.684 96 EXPENDITURE Cost of gen•rating fund• Consultancy costs 24.487 Charltable actlvltl•s Tutors Audition costs Student travel Venue hire Production costs Production marketlng Staff costs Rent. rale$ and in8ur8nce Heatlng 8nd Ilghting M8rkeling St8ff tralning Staff travel Ent8rtalnlng Repairs and malnlenance Cleanlng and housekeeping Bufgary c08ts Subscription Bank charges Short course programmes Trinlty college registraliofl D8precialion Mlscellaneou5 offlce costs Legal and professional Other accountancy fees Oulreach costs General expenses Govemance ¢osts18udll & accounlancy 283,696 29,163 78,153 22,883 99,303 1,318 436,882 210.119 10,975 38,931 9,467 5.627 307 22,517 30,653 17,250 7,877 2.613 1,424 17.875 25.561 20.056 2,173 30,777 2,790 8.695 215,352 16,560 53,349 13,940 86,799 14,417 291.447 134.225 8,088 9,007 10,781 1,770 1,205 13,613 20,081 5,000 5,667 2.181 3.859 15,533 23.787 11.655 14,045 18,266 11.262) 2.468 7.493 3,015 7,130 Industry research Student services and support Net expendf(ure 998 Net movement on unre8trlct&J funds

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Management letter to the Board of Trustees of Oxford School of Drama

Year ended 31 August 2023

March 2024

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Management Letter 2023

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||| |---|---| |Contents| |Introduction ............................................................................................................................................ 3| |Purpose of the document ...................................................................................................................... 3| |Acknowledgements .................................................................................................................................. 3| |Limitations ................................................................................................................................................. 3| |Executive Summary .................................................................................................................................. 4| |Further assistance ..................................................................................................................................... 4| |Audit Status ............................................................................................................................................. 5| |Areas of Audit Focus ................................................................................................................................ 5| |Audit differences ..................................................................................................................................... 6| |Trust: .......................................................................................................................................................... 6| |Summary of adjusted differences from draft numbers provided by management .............................. 6| |Summary of unadjusted differences in the final financial statements for approval ............................ 6| |Limited: ..................................................................................................|Error! Bookmark not defined.| |Summary of adjusted differences from draft numbers provided by management|Error! Bookmark| |not defined.| |Summary of unadjusted differences in the final financial statements for approval|Error! Bookmark| |not defined.| |Potential Control Weaknesses .................................................................................................................. 7| |Matters arisen in previous years.............................................................................................................. 7| |New matters arising in this year .............................................................................................................. 8| |Proposed Letter of Representation ........................................................................................................... 9| |Other audit matters ................................................................................................................................. 9| |Detailed comments on the financial statements and audit opinion ..................................................... 9| |Qualitative aspects of accounting practices ............................................................................................ 9| |Judgements made by management ........................................................................................................ 9| |Related parties .......................................................................................................................................... 9| |Independence matters ........................................................................................................................... 10| |Non-audit services provided and long involvement: ............................................................................ 10| |Personal independence: ......................................................................................................................... 10| |Serious incident reporting ...................................................................................................................... 10|

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Management Letter 2023

Introduction

Purpose of the document

In accordance with our normal practice and the International Standards on Auditing (UK) 260, we are writing to draw your attention to various matters which arose during the course of our audit of your financial statements for the year ended 31 August 2023.

This letter includes an executive summary of the key findings below which are supported by the detailed sections thereafter.

The purpose of the audit is to enable us to express an opinion on the financial statements. Our audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal controls. The matters reported are limited to those deficiencies that the auditor has identified during the audit and that the auditor has concluded are of sufficient importance to merit being reported to those charged with governance.

Our audit included obtaining sufficient and appropriate audit evidence to support our opinion. We use a variety of audit techniques to obtain audit evidence, including tests of design of controls; analytical review; verification of specific transactions and balances; and third party verification. We also assessed the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

Our audit involved a risk-based approach and included an examination of evidence on a sample basis. Because of the sample nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, there is an unavoidable risk that some errors and material misstatements may remain undiscovered. Any errors and irregularity identified have been included within this report.

Acknowledgements

We would also like to take this opportunity of expressing our thanks to your staff for their assistance during the course of our audit and with the accounts preparation. A substantial amount of preparation work was required in order to be fully ready for the audit and we appreciate the efforts of the Sue Hadland, David Hadland and Liz Wilson.

Limitations

Please note that this report has been prepared for the sole use of Oxford School of Drama Trust and it must not be disclosed to third parties, quoted or referred to, without our prior written consent. No responsibility is assumed by us to any other person or entity.

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Management Letter 2023

Executive Summary

We are pleased to attach our report and our key findings are summarised below.

Audit report outcomes - unmodified Page 10.
The number of audit adjustments identified and their impact. Page 6.
The number of potential control weaknesses identified and their significance. Page 8.
Any other matters of significance to be raised. Page 10.
Any specific points within the proposed letter of representation. Page 10.

Further assistance

Should Members of the Board of Trustees or management wish to ask any questions regarding the matters raised in this letter or if we can be of any further assistance, please contact Robert Kirtland.

Robert Kirtland FCA Audit Partner

Email RKirtland@critchleys.co.uk ~~a~~ Telephone 01865 261100

Website

Find out more about Robert Kirtland by watching his introductory video

on www.critchleys.co.uk/Experts/Robert

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Management Letter 2023

Audit Status

Our audit is substantially complete. There have been no significant changes to our audit plan, dated 9 January 2024.

Areas of Audit Focus

As detailed in our audit plan, dated 5 January 2023, we identified the following significant risk areas during our audit planning and have included a brief summary of the work carried out and our findings below.

	Riskarea	Work carriedout	Conclusion
1.	Fraud in relation to revenue recognition	Income was tested via proof-in-totals, as well as a sample testing. Additionally, cut-off was checked via an after date review.	No issues were noted during testing that was undertaken.
2.	Undisclosed related party transactions	The nominal ledger provided was analysed to ensure that all potential related party transactions were adequately disclosed.	£539 of payments to Trustee for services provided were identified (now disclosed). No issues were noted during testing that was undertaken.
3.	Potential for management override of controls	Walkthrough tests were undertaken to ensure that controls were in place as expected. Journals were assessed for any unusual activity. Impairment adjusted (against Limited company investment cost) reviewed.	No issues were noted during testing that was undertaken.
4.	Debtors reduced to remove 2023/24 fees in advance that had not been paid as at the year end	Trade debtors and deferred income was reviewed and any corresponding income was removed from both areas of the accounts.	No issues were noted. Adjustment was presentational and had no effect on net assets or the surplus in the accounts.
5.	Allocation of income or expenditure to restricted or designated funds	Fund workings were checked to nominal ledger to ensure allocations were correct.	No issues were noted during testing that was undertaken.

Our audit procedures go beyond the above higher risk areas to cover material areas of the financial statements. No issues were noted during the procedures.

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Management Letter 2023

Audit differences

In the normal course of an audit, we can identify misstatements in the financial data provided to us at the start of the audit. Where individual errors or their aggregation exceed our materiality level of £39,768 we are required to modify our audit report if they are not adjusted in the final financial statements. For the interest of Board of Trustees and management, we have summarised both the errors that have been corrected and those that have not.

In accordance with ICAEW guidance on triviality limits for audit, we report all items exceeding 5% of the materiality, which for this year is £1,988.

Trust:

Summary of adjusted differences from draft numbers provided by management

No.	Descriptionof error	Impacton SOFA	Impact on
			Balance sheet
		(£)	(£)
1.	Presentational – removal of amounts within	-	-
	deferred income and trade debtors
2.	Reallocate fundraising costs posted directly to	24,487	(24,487)
	reserves
TOTAL		-	-

Summary of unadjusted differences in the final financial statements for approval

No.	Descriptionof	Impacton SOFA	Impact on	Reason for
	error		Balance sheet	not amending
		(£)	(£)
None.
TOTAL

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Management Letter 2023

Potential Control Weaknesses

Your management is responsible for identification, assessment and monitoring of risk, and for developing, operating and monitoring the systems of internal control. Our audit procedures are designed primarily for the purpose of expressing an opinion on the financial statements and therefore do not constitute a full and detailed review of all aspects of the systems and controls and therefore cannot be relied upon to identify all actual and potential weaknesses. We have included a summary of the issues that we have identified below.

Matters arisen in previous years

Observation	Implications&risk	Recommendation	Management response
The declaration of interests form does not ask for a list of close family members.	The declaration of interests form does not ask for a There is a risk that some related parties are not identified, which may mean Trustees have a conflict of interest that is unknown and could mean that related party transactions disclosures in the financial statements could be materially misstated.	It is recommended that the declaration of interests forms are updated again this year and include a list of close family members.
2023 update: The form asks for “Any interests of family members that may be considered to be a potential conflict of interest.” None were noted. If a full list of close family is not to be provided then Trustees need to continue to consider their response to this question, erring on the side of disclosing item, particularly if close family are involved in profession or businesses of the type that the charity could potentially work with in the future.
During related parties testing, it was noted that additional interests were identified from Companies House that were not noted on 3 Trustees’ declaration of interests.	There is a risk that some related parties are not identified, which may mean Trustees have a conflict of interest that is unknown and could mean that related party transactions disclosures in the financial statements could be materially misstated.	It is recommended that checks, such as looking on Companies House or Charity Commission, are undertaken on declarations to ensure they are complete. Trustees to be reminded to ensure all interests are listed	ensure they are complete. Trustees
2023 update: This point is maintained

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Management Letter 2023

Observation	Implications&risk	Recommendation	Management response
We note that no pay rise letters are being kept. Pay	There is a risk that potential claims could be made if	We recommend that pay rises are
rises are confirmed via a Sub-Committee meeting.	there are disputes about when the pay rise was	communicated via email or a pay rise
However, no records are kept of the employees’	communicated with employees, if there is no physical	letter, which includes the increased salary
current and new salaries. The percentage increases	current and new salaries. The percentage increases evidence to trace.	and the date this will become effective.
are communicated to employees verbally.
2023: We have observed no pay rise letter to staff in the current year. Summary of end pay maintained by management.	2023: We have observed no pay rise letter to staff in the current year. Summary of end pay maintained by management.
New matters arising in this year
Observation	Implications&risk	Recommendation	Management response
Nothing new in the current year.

New matters arising in this year

Page | 8

Management Letter 2023

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 to approve and sign the attached letter of representation to accompany the signed final financial statements. We draw your attention to the specific representations contained within point 9, otherwise 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 issuing an unmodified audit report in your statutory financial statements.

Qualitative aspects of accounting practices

We have no comments to make concerning the qualitative aspects of the Oxford School of Drama Trust’s accounting practices and financial reporting, including accounting policies, accounting estimates and financial statement disclosures.

Judgements made by management

During the course of our audit we are required to review the main judgements or estimates made by management, which would have a material or significant impact on the financial statements. We have identified the following main judgement areas and our comments thereon.

Deferred income – based upon the fees for students already signed up for the next year. No issues noted.

Depreciation – depreciation policy consistent with previous years. No non-trivial errors were identified when recalculating depreciation.

Accrued income – an after date receipts review was undertaken. No missing accrued income was identified during this test. Accruals – based upon quotes, contracts and invoices. A sample was tested for accuracy and an after date payments review was undertaken. No issues noted from testing.

Cost apportionment between companies – based upon numbers of students on the 3 year and postgraduate courses compared to the total number of students within the school. Deemed reasonable.

Amortisation – goodwill is being depreciated over 10 years. Deemed reasonable. In charity impairment of investment now to match this.

Related parties

The Trust/Company is required to disclose all related party transactions, per the Charities SORP/FRS102, within its financial statements. We have identified the following potential related party transactions:

Intercompany recharges and intercompany balance at the year end
£539 to A Byam for audition services

We have no comments to make over how the charity identifies related party transactions other than the points raised on page 8.

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Independence matters

Non-audit services provided and long involvement:

We provide accounting and taxation services to the companies in addition to acting as auditors and Robert Kirtland has acted as Engagement Partner for more than 10 years. We wish to confirm to you that in our opinion the provision of such services and the continued involvement of Robert Kirtland as Responsible Individual do not affect our independence as the firm’s quality control procedures provide adequate safeguards in respect of the these matters. This consists of a review of the key sections of the audit files by a second Responsible Individual.

There is also informed management for the non-audit services.

Personal independence:

All Critchleys Audit LLP staff must adhere to strict regulatory, professional and internal independence requirements related to investments or business relationships with clients. All staff must confirm such compliance on an annual basis.

Serious incident reporting

All trustees are responsible for identifying and reporting, in a timely fashion, any serious incidents to the Charity Commission, in accordance with their requirements for all registered charities. Whilst our audit scope does not specifically require us to identify any such matters, we report to the members that there were no such actual or potential matters that came to our attention.

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Charity sector update 2023

Being charitable amidst high inflation

The charity sector is being stretched from all angles in the current economic climate. Soaring inflation and the cost-of-living crisis have seen demand for services increase, energy costs rise and pressure on salaries to ensure the best staff are attracted and retained. In addition, the cost-of-living crisis has seen a real term fall in disposable income which has reduced donations. All these factors mean that charities need to have a control on their finances to continue in operation.

The key for charities in this period is to ensure that the trustees understand the charity’s financial position. In addition, it is important that the trustees also consider cash flow implications and, in particular, periods where cashflow is squeezed.

What can a charity do to improve its financial position:

Minimise costs – it may appear obvious, but it is worth reviewing whether there are any costs that can be reduced or cancelled if they are not necessary for the charity.
Ensure that accurate budgeting and forecasting are completed on a timely basis. This will enable the charity to stay on top of their finances and help trustees make timely decisions.
Review the charity’s reserves – Do you have funds in excess of your reserves policy which could be spent on charitable activities? Ensure that you review any restricted funds to make sure you are spending them in line with the donor’s wishes.
Explore options to diversify your income streams – is it possible to reach out to other funders? Are there grants you are eligible for which you could apply?

Letters of support

As the current economic conditions and cost of living crisis begin to bite for more and more organisations, a charity may be asked to provide a letter of support for its trading subsidiary as loss-making periods can quickly turn a healthy trading subsidiary insolvent. The Trustees should carefully consider the legal and regulatory requirements before issuing a letter of support, including:

Whether the company’s trading is outside the charity’s objects as this may create the risk of using charitable funds for non-charitable purposes.
Any financial support given to a subsidiary company should be considered on an arm’s length basis as it would with other investments.
Will there be a return on their investment in the trading company or whether the trading company is no longer viable.
Attention should be paid to the precise wording of the letter of support to ensure it is appropriate.

Charity Act 2022

The latest tranche of Charities Act changes came into effect on 14 June 2023. These included:

Simplified legal requirements that charities must comply with before selling, transferring or leasing land, and
• new statutory powers to enable:

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charities to spend a proportion or all of their permanent endowment fund without Charity Commission authorisation.
charities to borrow up to 25% of the value of their permanent endowment fund without Charity Commission authorisation.
charities that have opted into a total return approach to investment to use permanent endowment to make social investments with a negative or uncertain financial return
the Charity Commission to direct a charity to stop using a similar, offensive or misleading name.
o the Charity Commission to delay registration of a charity with an unsuitable name.

The next tranche of changes will come into effect in the Autumn of 2023 and these include:

new rules on amending governing documents
new provisions to place merged charities on the register for legacy purposes, thus removing the need to keep a ‘shell’ charity

More information is available at: charities act 2022 guidance for charities.

Rising interest rates

In December 2021, the Bank of England’s office UK rate of interest was 0.1%. Since then, we have seen it steadily increasing to over 5% (August 2023) in an attempt to bring down inflation. Although this is bad news for much of UK economy, it does present an opportunity for those with money to deposit and, although not keeping pace with inflation, interest rates are now yielding meaningful returns. However, it’s worth shopping around rather than assuming your bank will pass on this higher interest rate, with fixed period deposits being the most fruitful.

Spring budget and charities

The March 2023 budget seems a long while ago now, but it’s worth remembering that Jeremy Hunt announced over £100 million of support for local charities and community organisations. In addition, £10 million will be made available for suicide prevention organisations in England across 2023-24 to 2024-25 to support people experiencing suicidal thoughts or approaching a mental health crisis.

HMRC’s Charity Newsletter

On 1 June 2023 the Charity Commission issued its first newsletter which can be accessed here. Topics covered include:

Restriction of tax reliefs - any non-UK registered charities as of 15 March 2023, will continue to be able to claim tax reliefs until 5 April 2024. Thereafter these will be restricted to UK charities only.
Charity compliance consultation – in April 2023 it was announced that HMRC will consult with the charity sector on tax reform to tackle non-compliance.
Future of gift aid - HMRC is currently looking at how the Gift Aid service can be improved to minimise the administrative burden

Updated Charity Commission guidance

Many of the recent updates have reflected changes introduced by the Charities Act 2022.

CC8 - Internal financial controls for charities

Updated guidance to help manage charity financial activity and make use of internal financial controls to reduce the risk of loss for the charity.

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CC9 - Campaigning and political activity guidance for charities

Updated the guidance on what charities need to consider when campaigning or engaging in political activity including guidance about Elections and Referendums.

CC11 - Trustee expenses and payments

Updated guidance on what a charity can pay trustees and what expenses trustees are entitled to.

CC14 – Investing charity money – guidance for trustees

The Charity Commission has been redesigned to offer greater clarity and to give trustees confidence in making investment decisions that are right for their charity and updated to reflect recent legal and practice changes.

CC28 - Sales, leases, transfers or mortgages: what trustees need to know about disposing of charity land

The Charity Commission has updated its guidance on disposing of charity land assets and such transactions must be properly managed in the best interests of your charity. Unless the disposal falls into a very limited number of exemptions, you must also get the best terms you reasonably can. This guidance explains that if land is held solely by your charity you must follow the legal requirements of the Charities Act 2011 (as amended).

CC29 - Conflicts of interest: a guide for charity trustees

Guidance updated on ability of charities to pay trustees in certain circumstances for providing goods to their charity using the statutory power.

CC33 – Acquiring land

The Charity Commission has updated its guidance either to use within the charity or as an investment. Before land or property is bought trustees must make sure:

the property suits the charity’s needs
the price is fair and of market value
they understand the legal obligations, such as planning restrictions

The guidance also goes onto explain when consent from the Charity Commission is required for a land transaction.

CC40 - Charity emergency appeals: starting, running and supporting charitable emergency appeals

Updated guidance about how to run effective emergency appeals and other ways to contribute to relief efforts including the simplified rules on failed appeals and what trustees need to do in these situations.

CC20 - Charity fundraising: a guide to trustee duties

Updated guidance on what charities and their trustees need to consider when fundraising from the public including the simplified rules on failed appeals and what trustees need to do in these situations.

Charity Commission’s Digital Services

From 31 July 2023, ‘My Charity Commission Account’ is the new way for trustees and charity contacts to access the Charity Commission’s online services. Charities can also authorise other people to use it, such as your accountant or lawyer.

This has been described as charities’ ‘front door’ into the Commission, through which any remaining Annual Returns for 2022 and all Annual Returns for 2023 onwards will be submitted, and the regulator’s wider digital services engaged with.

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Charities will have received an invitation directly from the Charity Commission. Find out more about it here.

Latest revision 11/9/23

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