ROYAL
OPERA
HOUSE
The Royal Opera House Endowment Fund 2000
Trustees, report and financial statements
Charity number 1089928
Year Ended 31 August 2023
## Contents
|Trustees’ report|3|
|---|---|
|Statement of trustees’ responsibilities|9|
|Independent auditor’s report to the Trustees of the Royal Opera House||
|Endowment Fund 2000|10|
|Statement of financial activities|13|
|Balance sheet|14|
|Notes|15|
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The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
## Trustees’ report
The trustees present their report together with the audited accounts for the year ended 31 August 2023. These accounts and annual returns will be filed with the Charity Commission.
## Reference and administrative details of the charity, its trustees and advisors
|Charity Number|1089928|
|---|---|
|Principal Office|Royal Opera House, Covent Garden,|
||London, WC2E 9DD|
|Auditors|Crowe UK LLP|
||55 Ludgate Hill,|
||London, EC4M 7JW|
|Bankers|Coutts and Co|
||440 Strand|
||London, WC2R 0QS|
|Solicitors|Farrer & Co LLP|
||66 Lincoln's Inn Fields|
||London, WC2A 3LH|
|Investment Managers|Stonehage Fleming Investment Management Limited|
||6 St James’s Square|
||London, SW1Y 4JU|
||Troy Asset Management Limited|
||33 Davies Street|
||London, Wik 4BP|
||Newton Investment Management Limited|
||BNY Mellon Centre|
||160 Queen Victoria Street|
||London, EC4V 4LA|
||TCI Fund Management Limited|
||7 Clifford Street|
||London, W1iS 2FT|
|Trustees|Dame Vivien Duffield (Chair)|
||Tim Bunting (Royal Opera House Trustee)|
||Caroline Britton (Royal Opera House Trustee, appointed
November
2022)|
||Hamish Forsyth (Independent Trustee)|
||Sir Simon Robey (Deputy Chair, Independent Trustee)|
||Peter Troughton CVO CBE (Independent Trustee, retired April|
||2023)|
||Lady Gavron (Independent Trustee)|
||Simon Freakley (appointed March 2024)|
|Secretarytothetrustees|LeahHurst|
|
The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
## Structure, governance and management
## Governing document
The Royal Opera House Endowment Fund 2000, (‘the Charity’), was established by trust deed on 14 December 2001 and is a registered charity number 1089928.
## Appointment and training of trustees
The trustees who have served wholly or partly during the year are set out on the previous page. The appointment of new trustees is vested in the existing trustees who shall consult the Royal Opera House before any appointment. The trustees shall ensure that no more than two of the Trustees are directors Royal Opera House Covent Garden Foundation ((ROHCGF’ or ‘the Royal Opera House’), and that no employee of ROHCGF is appointed a trustee. There shall be not less than five nor more than eight trustees of the Charity.
Trustees hold office for an initial term not exceeding three years and are eligible for reappointment for further terms not exceeding three years but may resign as trustee before the expiry of any term by notice in writing to the trustees.
The trustees appoint one of their number as the chairman of the trustees.
New trustees undergo an induction session with the secretary to the trustees to brief them on their obligations under charity law, the content of the trust deed, and the conduct of trustee meetings.
## Organisation
The direction and control of the Charity is determined by the trustees, who meet at least twice a year. As set out in the Charity SORP, the trustees are the key management personnel with oversight of the management and activities of the Charity. They receive no compensation. Day to day management and administration of the Charity is delegated to Alex Beard (Chief Executive Officer of the Royal Opera House), who attends the trustee meetings.
## Connected charities and companies
ROHCGF (‘the Royal Opera House’) - registered charity no. 211775. The Charity holds investments and generates income to grant to the ROHCGF. The principal activity of the ROHCGF is the presentation of opera and ballet performances at the Royal Opera House and tours in the United Kingdom and overseas. The power of appointing new trustees of the Charity is vested in the trustees who consult ROHCGF before any exercise of this power. The trustees ensure that three of the Trustees are directors of ROHCGF only for so long as Sir Simon Robey remains a director of ROHCGF and otherwise no more than two of the Trustees are directors ROHCGF and that no employee of ROHCGF is appointed a trustee. There shall be not less than five nor more than eight trustees of the Charity.
ROH Holdings Ltd - registered company no. 02580395. This is a holding company with one subsidiary, ROH Developments Limited, a property development company.
Royal Opera House Enterprises Limited - registered company no. 04112266. This is a subsidiary of ROHCGF.
## Going Concern
The Trustees must satisfy themselves as to the Charity’s ability to continue as a going concern for a minimum of 12 months from the signing of the financial statements. The Trustees continue to work closely with the investment managers to ensure funds are invested as effectively as possible to minimise exposure to risk. As the Charity holds endowments and
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The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
other funds of £52.6m, the Trustees feel there is little risk of the Charity not being able to continue in operational existence for the foreseeable future and for this reason the financial statements have been prepared on a going concern basis.
## Risk Management
The trustees have examined the major strategic and operational risks that face the Charity and are satisfied there are systems in place to mitigate identified risks. The trustees have received assurances from the Audit & Risk Committee of ROHCGF of the effectiveness of the internal controls. The main risks identified relate to the state of the UK economy, which has a direct impact on investment values and fundraising generally. The performance of investments is key to creating capital growth and income that can be granted to the ROHCGF in the furtherance of its charitable objects. The trustees manage this risk by regularly meeting with the Investment Managers and by scrutinising regular updates and presentations from the Investment Managers to understand the risk profile of the investments. Annually, the trustees review the risk register for the Charity.
## Objects and activities
The objects of the Charity are to promote the education of the public in the arts of opera and ballet by making grants to, or for the benefit of, the Royal Opera House. The Charity does this by seeking to increase its capital base by actively marketing the Charity as a recipient of legacy income and other gifts. The Charity also generates capital growth and income in order to make grants to the Royal Opera House.
The ROHCGF aims to enrich people’s lives through opera and ballet. Home to two of the world’s great artistic companies - The Royal Opera and The Royal Ballet, performing with the Orchestra of the Royal Opera House - it seeks to be accessible to audiences across the UK and to break new ground in the presentation of lyric theatre.
As the UK economy was facing a number of factors creating uncertainty and headwinds, the Royal Opera House delivered 412 live performances across both stages and over 624,000 tickets were sold across the season. Through the year 22 new productions were presented, of which 14 were world premieres. After a successful launch of the online streaming platform, remote audiences of over 142,000 people watched productions streamed online. Young ROH performances were attended by 70,000 20-29 year-olds. Over 10,000 children enjoyed schools matinee performances at the ROH in addition to 43,000 pupils in over 500 schools taking part in the National Schools Programmes.
The Royal Opera House’s achievements, supported by the Charity, are detailed in the Royal Opera House Trustees’ report and financial statements for 2022/23.
## Public Benefit
The Charity delivers public benefit by making grants each year to the Royal Opera House. The Trustees of the Royal Opera House refer to the Charity Commission's general guidance on public benefit when shaping and reviewing the ROHCGF charity’s aims, objects and future strategies. In setting the level of ticket prices, charges and concessions, and in developing digital and broadcast distribution, the Royal Opera House Trustees give careful consideration to the accessibility of the Royal Opera House to those on low incomes. This is addressed through maintaining a wide range of ticket prices, as well as through several ticket subsidy schemes, free events, cinema, live streaming, digital and broadcast activity and an extensive learning and participation programme.
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The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023
Charity number 1089928
## Grant making policy
The Charity comprises a number of separate funds. It determines the funding of projects which accord with their objects and which benefit the Royal Opera House. Each fund has a specific
- purpose: e Jean Sainsbury Fund may be used for the support of grand opera and classical ballet. The original transfer of funds to the Charity was made on the basis that the capital amount could be used to augment any annual grant to the Royal Opera House up to a total value of 5% of the value of the funds at the start of the year;
- e Paul Hamlyn Education Fund may be used to support the activities of the educational projects of the Royal Opera House. Applications are considered against the objects of the fund and the most suitable projects chosen in consultation with the Paul Hamlyn Foundation;
- e Franklin Fund is used to support choreographic work at the Royal Opera House; e Derek Butler Apprenticeship Fund is to be used to support the training of apprentices at the Royal Opera House. It is to be used over ten years from 2013 and due to the financial performance of the fund and due to COVID interrupting the schedule, there is still a balance remaining and the Derek Butler Trust have agreed that apprentices continue to be funded until the fund runs out;
- e Paul Ferguson Memorial Fund is used to support ballet; e Susan A. Olde OBE Music Director Fund is to be used to support the office of the Music Director. It is to be used over six seasons from 2017/18 and was agreed to use the remaining funds to support the Tony P. Gala in 2023/24 season;
- e Main Endowment Fund Unrestricted funds may be used in accordance with the charitable objects at the discretion of the trustees. The restricted funds may also be used in accordance with the object of the Charity, specifically relating to grants out of capital. This object requires that the trustees (acting unanimously) have a clear policy for restoring any grant out of capital within a period of five years or in exceptional circumstances a period not exceeding ten years.
Achievements and performance During the year the Charity made grants of £2,324,000 (Year ended 31 August 2022: £6,062,000) to the Royal Opera House. The grants made were as follows:
## Productions £936,000:
- e Main Endowment Fund - £706,000 to the core work of the artistic companies. e Jean Sainsbury Fund - £170,000 to support La Traviata; e Paul Ferguson Memorial Fund - £60,000 to support Mayerling.
## Education and Apprenticeships £555,000:
- e Paul Hamlyn Education Fund - £415,000 to support a variety of learning and access projects;
- e Derek Butler Apprenticeship Fund - £140,000 to support the Apprenticeship Scheme.
## Other £833,000:
- e Susan A. Olde OBE Music Director Fund - £833,000 to support the office of the Music Director;
The investment managers during the year, Stonehage Fleming Investment Management Limited, Troy Asset Management Limited and Newton Investment Management Limited, achieved a combined capital growth and income return net of investment management fees of 1.56% for the year ended 31 August 2023 (Year ended 31 August 2022 decrease of[1.82%).] The return for 2023 did not exceed the blended target of CPI plus 3.5% (10.2%). Investments with Stonehage Fleming which are long term in nature are being progressively wound down.
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The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
During the year, the trustees agreed a deed of variation to the leases of £12m. This has resulted in an increase in overall fund balances and other income of £6.3m in the year, the difference in the carrying value of the leases (£5.7m) and the £12m secured from the variation. Since August 2023, the trustees have made some changes with regards to the investment managers. All funds held with Troy Asset Management Limited have been liquidated, and the trustees have placed a new investment of £15m with TCI Fund Management Limited. The trustees are reviewing options for other investments and until that time have placed funds on deposit.
## Financial review
Grants totalling £2,324,000 (Year ended 31 August 2022 £6,072,000) were made to the ROHCGF in furtherance of the Charity’s objects. Other resources expended related primarily to the management of investments, and the marketing of the Charity as a beneficiary of legacy income for the benefit of the Royal Opera House. The investment managers’ fees were £269,153 (Year ended 31 August 2022 £275,452).
The total funds at 31 August 2023 were £52.6m (Year ended 31 August 2022 £46.8m). The net increase in funds for the year as set out in the statement of financial activities was £5,809,929 (Year ended 31 August 2022: decrease of £4,728,434), comprising net incoming resources of £5,757,637 and net realised and unrealised gain of £52,292 on investments held with investment managers. Funds held with investment managers at the end of the year were £38,274,608 (2022: £38,426,122) including cash holdings with investment managers of £9,566,971 (2022: £7,516,427) disclosed under Fixed Assets. Additional cash balances at the bank at the end of the year were £13,784,582 (2022: £2,785,453).
## Investment powers and policy
There are no restrictions on the investment powers of the trustees. The trustees are permitted to invest and reinvest the trust fund, providing the objects and purposes of the Charity are met, and subject to such consents as may be required by law.
## Investment Policy
The Trustees reviewed and agreed an Investment Policy in line with the Charities Commission Guidance CC14. A summary of the key investment objects are as follows: e Generate investment income to support the grant income available to support the ROHCGF; and e Deliver capital growth to maintain the real value of investments for future years. To achieve the above objects the trustees have set the investment benchmark of a total blended return of CPI +3.5% ona rolling basis.
ROHCGF is focused on managing investments in line with the broader environmental, social and governance (ESG) strategy, and over time, the Trustees are fully committed to ensure their funds reflect the ESG position of the ROHCGF.
## Reserves policy
The trustees have reviewed the free reserves (comprising unrestricted net current assets) of the Charity which are £253,837 at 31 August 2023 (31 August 2022: £210,890). Free reserves are intended to give the Charity financial flexibility and a buffer against operational risks. Having considered the Charity’s commitments with regard to the sensitivity of investment returns in the economic climate, the trustees have considered the level of free reserves and believe total reserves are at an appropriate level at the year ended 31 August 2023. The aim has been to build up free reserves to ensure that grants can be made to the Royal Opera House in future years even if investment income underperforms.
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The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
## Trustees and trustees’ interests
No Trustee received any remuneration for his or her services or was reimbursed for out of pocket expenses, nor was the Charity involved with any contracts or transactions in which any trustee had a material interest.
## Plans for future periods
The Charity seeks to increase its capital base by actively marketing the Charity as the recipient of legacy and philanthropic income pledged in support of the Royal Opera House and by achieving capital growth in line with or in excess of investment objects. Grant applications will continue to be considered for the funding of projects which benefit the Royal Opera House which are consistent with the Charity Commission’s guidelines on public benefit.
## Auditors
The trustees who held office at the date of approval of this trustees’ report confirm that, so far as they are each aware, there is no relevant audit information of which the Charity’s auditors are unaware; and each trustee has taken all the steps that he/she ought to have taken as a trustee to make himself/ herself aware of any relevant audit information and to establish that the Charity’s auditors are aware of that information.
On behalf of the trustees Cara . ) »
Dame Vivien Duffield Chair 20 March 2024
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The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
## Statement of trustees’ responsibilities
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.
The Charities Act 2011 requires the trustees to prepare financial statements for each financial year. The trustees have to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland. The trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the trustees are required to:
- e select suitable accounting policies and then apply them consistently; e observe the methods and principles in the Charities SORP (FRS 102); e make judgments and accounting estimates that are reasonable and prudent; e state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- e prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
## Independent Auditor’s Report to the Trustees of Royal Opera House Endowment Fund 2000
## Opinion
We have audited the financial statements of Royal Opera House Endowment Fund 2000 (the ‘charity’) for the year ended 31 August 2023 which comprise Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework 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:
- e give a true and fair view of the state of the charity’s affairs as at 31 August 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
- e have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- e have been prepared in accordance with the requirements of the Charities Act 2011.
## Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern 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 to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve 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.
## Other information
The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent 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 material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- e the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
- e sufficient accounting records have not been kept; or e the financial statements are not in agreement with the accounting records and returns; or
- e we have not received all the information and explanations we require for our audit
## Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement set out on page 9, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, 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 (UK) will always detect a material misstatement when it exists. Misstatements 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 users taken on the basis of these financial statements.
We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- e We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the Financial Statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
- e In addition, we considered provisions of other laws and regulations that do not have a direct effect on the Financial Statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations included General Data Protection Regulation (GDPR) and Health and Safety legislation.
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The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
- e Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations through enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any.
- e We identified the greatest risk of material impact on the Financial Statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Audit and Risk Committee about its own identification and assessment of the risks of irregularities, testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the Financial Statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the Financial Statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
(Creu MWe CL Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW 22 March 2024
Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
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The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
## Statement of financial activities for the year ended 31 August 2023
||||||2023|2022|
|---|---|---|---|---|---|---|
||Note||||||
|||Unrestricted|Restricted|Endowment|Total|Total|
|||£|£|£|£|£|
|Income and endowments from:|||||||
|Donations and legacies
Investment
Other income|2
4
5|-
764,082
-|-
388,110
-|913,733
#
6,300,000|913,733
1,152,192
6,300,000|1,797,741
489,357
-|
|Total incoming||764,082|388,110|7,213,733|8,365,925|2,287,098|
|Expenditure on:|||||||
|Raising funds|||||||
|Raising donations and legacies
Investment managers’ fees
Charitable activities|7|(15,135)
-|-
-|-
(269,153)|(15,135)
(269,153)|(20,304)
(275,452)|
|Grants to Royal Opera House Covent
Garden Foundation|6|(706,000)|(612,343)|(1,005,657)|(2,324,000)|(6,072,000)|
|Total expenditure||(721,135)|(612,343)|(1,274,810)|(2,608,288)|(6,367,756)|
|Net gains/(losses) on investments|8|=|-|52,292|52,292|(647,776)|
|Net income / (expenditure)||42,947|(224,233)|5,991,215|5,809,929|(4,728,434)|
|Transfer between funds|15|-|29,278|(29,278)|-|-|
|Netmovement infunds||42,947|(194,955)|5,961,937|5,809,929|(4,728,434)|
|Reconciliation offunds|||||||
|Fund balances brought forward at
1 September 2022 as previously stated|14;15|210,890|1,776,690|44,804,781|46,792,361|51,520,795|
|Restatement|15|-|(1,581,735)|1,581,735|-|-|
|Fund balances brought forward at
1 September 2022 restated|14;15|210,890|194,955|46,386,516|46,792,361|51,520,795|
|Fund balances carried forward at
31August2023|14;15|253,837|-|52,348,453|52,602,290|46,792,361|
## Incoming resources arise from continuing operations.
The Charity had no recognised gains or losses other than the net movement in funds for the year.
The notes on pages 15 to 27 form part of these financial statements.
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The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2021 Charity number 1089928
## Balance sheet as at 31 August 2023
||||2022|
|---|---|---|---|
|||2023|Restated|
||Note|£|£|
|Fixed assets||||
|Investments|11|38,274,608|38,426,122|
|Current assets||||
|Debtors amounts falling due after|12|-|5,430,000|
|more than one year||||
|Debtors amounts falling due within|12|548,100|404,102|
|one year||||
|Cash at bank||13,784,582|2,785,454|
|Total current assets||14,332,682|8,619,556|
|Creditors: amounts falling due within|13|(5,000)|(253,317)|
|one year||||
|Net current assets||14,327,682|8,366,239|
|Net assets|14|52,602,290|46,792,361|
|Unrestricted|15|253,837|210,890|
|Restricted|15|-|194,955|
|Endowment|15|52,348,453|46,386,516|
|Funds|15|52,602,290|46,792,361|
These financial statements were approved and signed on 20 March 2024 by:
Dame Vivien Duffield Chair
The notes on pages 15 to 27 form part of these financial statements.
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The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
## Notes
(forming part of the financial statements)
## 1 Accounting policies
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Charity’s financial statements.
Basis of preparation The financial statements are prepared in accordance with the FRS102 applicable accounting standards and the Charities Act 2011. They have been prepared under the historical cost convention, modified to include the revaluation of fixed asset investments. The Charity has adopted the Statement of Recommended Practice “Accounting and Reporting by Charities” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). There are no material departures from FRS102.
The Charity meets the definition of a qualifying entity under FRS102 as the results of the Charity are consolidated into the ROHCGF's financial statements which are publicly available. In accordance with FRS 102 S1.12, the Charity has taken advantage of the exemptions in respect of the preparation of a cash flow statement and the disclosure of financial instruments.
The Charity was established by trust deed in the United Kingdom on 14 December 2001 and is a registered charity number 1089928. The charity is registered in England and its principal address is Royal Opera House, Covent Garden, London, WC2E 9DD.
## Going Concern
The Trustees consider that the going concern assumption is an appropriate basis on which to prepare these financial statements. Working closely with the investment managers to invest the funds with minimal risk (as set out within the heading Going Concern on pages 4 to 5) the Trustees consider the Charity has adequate resources to continue in operational existence for the foreseeable future being a minimum of twelve months from the date of the approval of these financial statements. For this reason, the financial statements have been prepared on a going concern basis.
## Public Benefit
The Charity delivers public benefit by making grants on an annual basis to Royal Opera House Covent Garden Foundation, ((ROHCGF’ or ‘the Royal Opera House’). The Charity is a public benefit entity under FRS102.
Significant judgements and key sources of estimation uncertainty Management have exercised their judgement in determining that the fair value of the leased commercial units at the inception of the leasing arrangement amounts to the initial payments paid by the third party and the present value of rent receipts over the term of the lease and determining that the residual value of the leased units at the end of the lease term is negligible when discounted to present value. However, after change in the terms there is no longer finance lease receipts going forward. See Note 12 for carrying values for the prior periods.
## Fixed asset investments
Investments are shown at fair value as at the balance sheet date. Realised and unrealised gains on investments are recognised in the statement of financial activities, and are treated as attributable to Restricted Capital funds. A breakdown of the level in
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The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
the following fair value hierarchy into which the fair value measurements are categorised is disclosed. A fair value measurement is categorised in its entirety on the basis of the lowest level input that is significant to the fair value measurement in its entirety.
Level 1: The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date.
Level 2: Inputs other than quoted prices within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly. Level 3: Inputs are unobservable (i.e. for which market data is unavailable) for asset or liability. Finance leases Finance leases are leases in which substantially all the risks and rewards of ownership, other than legal title, are transferred to the lessee. Assets acquired and held for use under finance leases are presented as a debtor at an amount equal to the net investment in the lease. Finance income is subsequently recognised at a constant periodic rate of return on that net investment. Contingent rentals arising under finance leases are recognised on receipt.
## Fund accounting
Unrestricted funds may be used in accordance with the charitable objects at the discretion of the trustees. Restricted funds are to be used in accordance with the object of the Charity and specific restrictions placed by the donor.
Endowment funds represent those assets that are required to be invested. These funds include both permanent endowment funds, where there is no power to convert the capital into income and the funds are required to be held permanently by the Charity, and expendable endowment funds where the trustees have the power to convert the capital into expendable income. These funds are invested to produce income to meet expenditure, as directed by the terms of the endowment or by the terms of the Charity.
## Functional Currency
The Charity operates primarily in the UK and the functional currency as well as the reporting currency is the pound sterling.
## Income
Income is recognised only when it is probable that the economic benefits associated with the transaction will flow to the charity and the amount of the revenue can be measured reliably. Investment income is recognised on an accruals basis. Specifically, interest is recognised using the effective interest method and dividend income is recognised when the right to receive payment is established. Income from grants and donations is accounted for when the receipt is probable, there is evidence of entitlement and can be measured reliably. Entitlement is assessed using performance and timerestriction conditions. Pecuniary legacies are recognised when the legacy has been received or if, before receipt, there is sufficient evidence to provide the necessary certainty that the legacy will be received. Residual legacies are recognised on the earlier of receipt of the finalisation of estate accounts. Where legacies have been notified to the charity, but the income criteria have not been met, these are disclosed as contingent assets, see note 3.
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The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
## Charitable expenditure
Expenditure is included on an accruals basis. Grants are recognised in the financial year in which the grant has been awarded.
## Cash at bank and in hand
Cash at bank includes cash equivalents which are defined as short term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.
## Assets
Assets are resources which are controlled by the company as a result of a past event, from which future economic benefits are expected to flow to the company. Assets are recognised only when it is probable that future economic benefits will flow to the company when the item has a cost or value that can be measured reliably.
## Debtors
Debtors fall into the definition of assets and encompass trade debtors, accrued income, prepayments and intra-group balances. Debtors are measured at the cost of the transaction where receipt is not deferred beyond normal terms. Where receipt is deferred beyond normal terms, the debtor is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. In both instances, measurement is net of provision for doubtful debts.
## Liabilities
Liabilities arise when there is a present obligation (legal or constructive) as a result of a past event, from which future economic benefits are expected to flow to the supplier or counterparty. Liabilities are recognised only when it is probable that future economic benefits will flow to the supplier or counterparty and when the item has a cost or value that can be measured reliably. Contracted commitments are not recorded as liabilities on the balance sheet, as the criteria for recognition have not been met. Commitments are disclosed in note 16.
## Creditors
Creditors fall into the definition of liabilities and encompass trade creditors, accruals for costs not yet billed or processed, deferred income and intra-group balances. Creditors are measured at the cost of the transaction where payment is not deferred beyond normal terms. Where payment is deferred beyond normal terms, the creditor is : measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
## Prior year adjustment
A reclassification of the Susan Olde Music Director Fund totalling £1,581,735 from restricted funds to endowment funds for the opening reserves has been made.
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The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
4. Investment income
## 2 Donations and legacies
||||2023||||2022|
|---|---|---|---|---|---|---|---|
||Permanent|Expendable|Total|Permanent|Expendable||Total|
||endowment|endowment||endowment|endowment|||
||£|£|£||||£|
|Legacies|843,144|-|843,144|1,624,292||=|1,624,292|
|Other donations|70,589|-|70,589|173,449||-|173,449|
||913,733|-|913,733|1,797,741||-|1,797,741|
Donations and legacies are directed to support and grow the capital in the Charity unless otherwise directed by the donor. The Trustees have declared a legal trust over these incoming resources to invest and hold these funds as permanent endowment funds.
## 3 Contingent assets
The Charity is the beneficiary of a number of legacies, the value of which cannot be ascertained with certainty. Based on the information available at the date of the financial statements, it is estimated that the Charity will receive approximately £2.5m from these legacies.
As the receipt of these legacies is dependent on future events, they are not recognised as an asset in the statement of financial position. However, they are disclosed in this note as a contingent asset in accordance with FRS 102 SORP paragraph 5.34.
|||||2023|2022|
|---|---|---|---|---|---|
|||||£|£|
|Finance|lease|interest|income|136,092|270,202|
|Dividend|and|interest|income|1,016,100|219,155|
|||||1,152,192|489,357|
Dividend and interest income is earned on funds managed by the Investment Managers and interest on bank deposits held at Coutts and Co. Finance lease interest income and contingent rents are derived from leases for the retail units on the site of the Royal Opera House.
## 5 Other income
During the year ended 31%t August 2023 the Charity recognised a total of £6,300,000 (2022: nil) in other income. This income was generated from variation of the lease of retail units. The gain of £6.3m resulting from the variation of the leases was after the property valuation undertaken by Gerald Eve LLP on 19 September 2019 deemed the fair value of this asset to be £12m and the book value held under debtors was £5.7m.
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The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
## 6 Grants
During the year the Charity made grants of £2,324,000 (2022: £6,072,000) to the Royal Opera House in support of the following productions/projects:
||Unrestricted|Restricted|Restricted|Permanent|Expendable|Endowment|Total|
|---|---|---|---|---|---|---|---|
||funds||funds|Endowment|Endowment|Total||
||£||£|£|£|£|£|
|Core work of artistic companie:|706,000||-|*|=|-|706,000|
|La Traviata
Mayerling
Education projects|-
-
-||77,934
60,000
415,000|=
-
-|92,066
ie
-|92,066
=
-|170,000
60,000
415,000|
|Derek Butler Apprentices
Susan Olde|-
-||24,176
35,233|-
-|115,824
797,767|115,824
797,767|140,000
833,000|
||706,000|612,343||-__|1,005,657|1,005,657|_2,324,000|
|Expenditure on raising donations and||||legacies||||
|||||||2023|2022|
|||||||£|£|
|Marketing and publicity||||||10,135|15,304|
|Ground rent||||||5,000|5,000|
|||||||15,135|20,304|
|Gains and losses on|revaluations||and disposals||of investments|||
|||||||2023|2022|
|||||||£|£|
|Realised gains on disposal of investments||||||18,466|35,233|
|Unrealised gain on revaluation of other investments||||||33,826|(683,009)|
|||||||52,292|(647,776)|
## 7 Expenditure on raising donations and legacies
## 8 Gains and losses on revaluations and disposals of investments
During the year there were gains on investments totalling £52,292 (2022: £647,776 loss). Of this £33,826 relates to unrealised gains primarily due to positive movements in the fair value of the investments held by Troy and Newton, £18,466 relates to realised gains on the disposal of investments in Stonehage fund.
Realised gains on investments are classified as ‘Restricted Capital’ within the Statement of financial activities, as they were reinvested within the investment portfolio and were not available to be utilised at the discretion of the trustees.
## 9 Trustees’ remuneration
Trustees received no remuneration and were paid no expenses during the year (2022: nil). The Charity does not have any employees.
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The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
## 10 Taxation
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable trust for UK income tax purposes. Accordingly, the Charity is exempt from taxation in respect of income or capital gains received within categories covered by Part 10 Income Tax Act 2007 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Due to the high value of non-business and exempt activities, the Charity is unable to recover any tax on many of its purchases. All non-recoverable VAT is included within the appropriate expenditure headings.
## 11 Fixed asset investments
|||||2023||2022|
|---|---|---|---|---|---|---|
|||||£||£|
|Held with investment managers:|||||||
|- Venture funds||||129,160||216,522|
|- Quoted equities||||12,642,182|18,026,372||
|- Hedge funds
- Bonds||||5,115
12,308,405||4,931
9,026,654|
|- Cash funds||||9,566,971||7,516,427|
|- Gold||||3,622,775||3,635,216|
|Total investments with Investment|Managers||||||
|||||38,274,608|38,426,122||
|The movements in investments|held with|investment managers were as|||follows:||
|||2023|||2022||
||Listed|Other|Total|Listed|Other|Total|
||investments|investments|investments|investments
investments||investments|
||£|£|z|£|£|£|
|Market value at beginning of the period|37,956,972|469,150|38,426,122|38,466,326|608,777|39,075,103|
|Additions (at cost)|1,194|=|1,194|~|=|7|
|Disposals (at opening market value)|=|(205,000)|(205,000)|“|=|=|
|Net realised and unrealised investment (loss) / gain|105,197|(52,905)|52,292|(509,354)|(139,627)|(648,981)|
|Market value at end of the period|38,063,363|211,245|38,274,608|37,956,972|469,150|38,426,122|
|Historicalcostatendoftheperiod|34,675,689|761,414|35,437,103|34,675,688|761,414|35,437,102|
The movements in investments held with investment managers were as follows:
As at 31st August 2023 investments held with investment managers are measured at fair value, £38.1m (2022: £38.2m) categorised as Level 1 and £0.1m (2022: £0.2m) as Level 3.
20
The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
Split of investments between those based in the UK and those that are based overseas:
||||2023|||2022|
|---|---|---|---|---|---|---|
||UK|Overseas|Total|UK|Overseas|Total|
||£|£|£|£|£|£|
|All Equities|4,367,583|9,060,184|13,427,767|5,337,717|12,688,655|18,026,372|
|Bonds|1,627,749|9,962,632|11,590,381|3,573,830|5,452,824|9,026,654|
|Alternative|134,275|=|134,275|221,453|-|221,453|
|Investments*|||||||
|Cash|4,065,247|5,434,163|9,499,410|7,516,427|-|7,516,427|
|Gold|3,622,775|=|3,622,775|3,635,216|=|3,635,216|
||13,817,629|24,456,979|38,274,608|20,284,643|18,141,479|38,426,122|
- — Alternative investments include Hedge Funds, Commodities, Property, Special Situations LLPs, Infrastructure and Currency Options.
## 12 Debtors
||2023|2022|
|---|---|---|
||£|E|
|Debtors: amounts falling due after more than one year|||
|Finance lease rental income|=|5,430,000|
||-|5,430,000|
|Debtors: amounts falling due within one year|||
|Finance lease rental income due within one year|-|270,000|
|Investment income receivable|144,625|7|
|Amounts owed by ROHCGF|113,791|-|
|Accrued income|289,694|134,102|
||548,100|404,102|
The 5% income interest in the leases of the retail units on the site of the Royal Opera House was accounted for as a finance lease debtor and therefore held at an historic valuation which in total was £5.7m until 28 February 2023 when a deed of variation on the leases was agreed.
||2023|2022|
|---|---|---|
||£|£|
|Gross investment in a finance lease at the end of the period|7|59,243,000|
|Unearned finance income for the period|=|(53,543,000)|
|Presentvalueofminimumleasepaymentsattheendoftheperiod|7|5,700,000|
ZA
## The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
## 13 Creditors: amounts falling due within one year
||2023|2022|
|---|---|---|
||£|£|
|Amounts owing to ROHCGF|=|8,700|
|Amounts owing to ROH Holdings Limited|5,000|10,000|
|Deferred rental income|=|19,499|
|Other creditors|-|215,118|
||5,000|253,317|
||2023|2022|
||=|£|
|Deferred income at beginning of year|19,499|19,499|
|Rental income received|116,594|270,202|
|Released to Statement of financial activities|(136,093)|(270,202)|
|Deferredincomeattheendofyear|=|19,499|
## 14 Analysis of net assets between funds
||||Other net||
|---|---|---|---|---|
||Investments|Cash at bank|current||
|||and in hand|assets|Total|
||z|z|E|z=|
|Unrestricted funds|-|114,212|139,625|253,837|
|Restricted funds|-|a|-|-|
|Endowment|38,274,608|13,670,370|403,475|52,348,453|
|At 31 August 2023|38,274,608|13,784,582|543,100|52,602,290|
||||Other net||
||Investments|Cash at bank|current||
|||and in hand|assets|Total|
||£|£|£|£|
|Unrestricted funds|e|243,100|(32,210)|210,890|
|Restricted funds|=|194,955|=|194,955|
|Endowment|38,426,122|2,347,399|5,612,995|46,386,516|
|At31August2022restated|38,426,122|2,785,454|5,580,785|46,792,361|
22
## The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
**----- Start of picture text -----**
15 Funds
**----- End of picture text -----**
**----- Start of picture text -----**
Ati
September Atl
2022 as September
previously 2022 as At31
stated Restatement restated Income Expenditure Gains/(losses) Transfers August 2023
E E i £ £ £
Permanent endowment
Main endowment fund 28,711,726 - 28,711,726 7,213,734 (143,581) 67,851 (6,115) 35,843,615
Paul Hamlyn Education 9,799,402 - 9,799,402 - (74,602) (73,185) (27,682) 9,623,933
Paul Ferguson Memorial Fund 2,210,290 - 2,210,290 = (11,637) 51,645 4,519 2,254,817
Aen Ae 40,721,418 7,213,734 (229,820) 46,311 (29,278) 47,722,365,
Expendable endowment
Jean Sainsbury Fund 3,390,453 - 3,390,453 - (115,817) 16,011 - 3,290,647
Franklin Fund 551 e 551 = (4) (3) - 544
Derek Butler Apprenticeship 692,359 - 692,359 = (121,116) 1,738 * 572,981
Susan Olde Music Director Fund = 1,581,735 1,581,735 8 (808,054) (11,765) - 761,916
Total expandable endowment funds 1,083,3634,083,363 1,581,7351,581,735 5,665,0985,665,098 4,044,991)- (1,044,991) 5,9815,981 «626,088- 4,626,088
Restricted funds
Paul Hamlyn Education 189,845 = 189,845 197,473 (415,000) - 27,682 -
Paul Ferguson Memorial Fund = - z 58,404 (60,000) = 1,596 -
Jean Sainsbury Fund = = = 77,934 (77,934) = - -
Franklin Fund (5) & (5) 8 (3) - - 2
Derek Butler Apprenticeship 5,115 = 5,115 19,061 (24,176) = - -
Susan Olde Music Director Fund 1,581,735 (1,581,735) - 35,233 (35,233) - - -
Total restricted funds ——1276,6901,776,690 (4,581,735)(1,581,735) 194,955194,955 388,113388,113 (612,346)(612,346) 20,278* 29,278 =
Unrestricted funds
General 210,890 7 210,890 764,080 (721,132) = = 253,837
Total funds 46,792,361 = 46,792,361 8,365,927 (2,608,289) 52,292 - 52,602,290
**----- End of picture text -----**
Main Endowment Fund is the Trust Fund as defined in the Charity’s Trust Deed. The above disclosure demonstrates the source of the Charity’s funds.
The Prior year restatement relates to a reclassification of the Susan Olde Music Director Fund totalling £1,581,735 from restricted funds to endowment funds.
Transfers of £29,278 relate to corrections on the funds to ensure carried forward balances are accurate.
Funds currently represent:
- e The Main Endowment Fund is a permanent Endowment. This comprises the surplus on the Royal Opera House Development Appeal held in the form of cash and property assets, and subsequent donations and legacies.
- e The Jean Sainsbury Fund was created from a transfer of funds from the Jean Sainsbury Royal Opera House Fund, which was wound up in March 2004. The annual grant, to be spent on grand opera or classical ballet, is in the name of the Jean Sainsbury Fund. The original transfer of funds to the Charity was made on the basis that the capital amount could be used to augment any annual grant to the Royal Opera House up to a total value of 5% of the value of the funds at the start of the year. This is an expendable endowment.
- e The Paul Hamlyn Education Fund is a separate fund comprising a donation received from the Paul Hamlyn Foundation. Income generated and capital, subject to certain restrictions, may be used to support the activities of the educational projects of the Royal Opera House. This is a permanent endowment. The funding agreement was amended 28 September 2022 to approve the payment of £3,774,000 to ROHCGF as an
ao
The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
- exceptional grant in the 2022 financial year, being part of the income accumulated in the Paul Hamlyn Educational Fund.
- e The Franklin Fund is a separate fund comprising a donation received from the late John Franklin. The income and capital from the Franklin Fund may be used to support the choreographic work at the Royal Opera House, and is therefore an expendable endowment.
- e The Derek Butler Apprenticeship Fund is a separate fund created from a donation of £1.875m from the Derek Butler Trust to endow the Royal Opera House Apprenticeship Scheme. This is an expendable endowment to be spent over 10 years starting from September 2013 and with the balance agreed to be used for apprentices until the fund runs out.
- e The Paul Ferguson Memorial Fund was established by the Peyton Trust as a permanent endowment which supports ballet.
- e The Susan A. Olde OBE Music Director Fund is a separate fund created from a donation received from Susan A. Olde OBE to support the office of the Music Director. This is an expendable endowment to be spent over six seasons from 2017/18. Although the sixth payment has gone through in the year 22/23, the remaining income generated by the fund to be used for a special gala in honour of Sir Antonio Pappano in the following season.
## Funds (as at 31 August 2022)
||Ati||||||
|---|---|---|---|---|---|---|
||September
2021|Income|Expenditure Gains/(losses)||Transfers|At3i
August 2022|
||£|£||£|£|£|
|Permanent endowment|||||||
|Main endowment fund|27,684,773|1,797,741|(134,261)|(340,375)|(296,152)|28,711,726|
|Paul Hamlyn Education
Paul Ferguson Memorial Fund|14,188,399
2,318,139|-
-|(4,271,413)
(17,742)|(117,584)
(90,107)|=
-|9,799,402
2,210,290|
|Total permanent endowment funds|ig
44,191,311
1,797,741
(4,423,416)
(548,066)
(296,152)
40,721,418||||||
|Expendable endowment
Jean Sainsbury Fund
Franklin Fund|3,637,229
551|2
=|(166,210)
=|(80,566)
7|-
=|3,390,453
551|
|Derek Butler Apprenticeship
Susan Olde Music Director Fund
Total expandable endowment funds|851,510
-
(147,662)
(11,489)
=
692,359
=
=
-
ae
=
=
a
ren nn ETE
4,489,290
-
(313,872)
(92,055)
g
4,083,363||||||
|Restricted funds|||||||
|Paul Hamlyn Education
Paul Ferguson Memorial Fund
Jean Sainsbury Fund
Franklin Fund|189,698
-"
7|147
53,884
29,064
=|7
(53,884)
(29,064)
(5)|=
S
=
=|=
-
=
-|189,845
=
-
(5)|
|Derek Butler Apprenticeship
Susan Olde Music Director Fund
Total restricted funds|*
5,115
3
=
-
5,115
2,439,606
te
(850,216)
(7,655)
=
1,581,735
ct
eg
2,629,304
88,210
(933,169)
(7,655)
=
1,776,690||||||
|Unrestricted funds
General|210,890|401,147|(697,299)|=|296,152|210,890|
|Totalfunds|51,520,795|2,287,098|(6,367,756)|(647,776)|-|46,792,361|
24
The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
## 16 Commitments
The Charity has no capital commitments as at 31 August 2023 (2022: nil).
The Charity has commitments for future minimum lease payments under a noncancellable operating lease as follows:
||2023|2022|
|---|---|---|
||£|£|
|Not later than one year|5,000|5,000|
|Later than one year and not later than five years|20,000|20,000|
|Laterthanfiveyears|1,066,235|1,071,235|
The lease payments payable are guaranteed at the greater ofaminimum annual amount of £5,000 throughout the life of the long lease (expiry in December 2241) and 0.5% of 5% of the rents collected in an associated lease, held by the Charity. The lease held by ROH Endowment has been varied on 28th of February 2023 to include Shaftesbury Capital plc (at that time known as Capital & Counties Properties plc). However, at the balance sheet date, the trustees consider this potential increased lease payments receivable to be so remote that the guaranteed minimum annual payments is recognised on a straight line basis over the lease. £5,000 was recognised as an expense during the year ended 31 August 2023 (2022: £5,000).
## 17 Transactions with trustees, connected persons, connected Charities and other related parties
## Connected Charities
## (a) Royal Opera House Covent Garden Foundation - registered charity no. 211775 and registered company no. 480523
The principal activity of the ROHCGF is to promote and assist in the advancement of education so far as such promotion and assistance shall be of a charitable nature and in particular, to raise the artistic taste of the country, and to procure and increase the appreciation and understanding of the musical art in all its forms. The power of appointing new trustees of the Charity is vested in the trustees who consult ROHCGF before any exercise of this power. The trustees ensure that three of the trustees are directors of ROHCGF only for so long as Sir Simon Robey remains a director of ROHCGF and otherwise no more than two of the trustees are directors ROHCGF and that no employee of ROHCGF is appointed a trustee.
Grants made to ROHCGF are disclosed in note 6.
## (b) ROH Holdings Ltd - registered company no. 02580395
ROH Holdings Ltd is a holding company with one subsidiary, ROH Developments Limited, a property development company.
ROH Holdings Ltd charges the Charity for ground rent for the property lease held by the Charity which represents a 5% income interest in the leases for the retail units on the site of the Royal Opera House.
25
The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
The ground rent charged by ROH Holdings Ltd to the Charity is disclosed in note 7 and the related operating lease commitments in note 16.
(c) Royal Opera House Enterprises Limited - registered company no. 04112266 Royal Opera House Enterprises Limited is a subsidiary of ROHCGF and is an event, catering and video production company.
Amounts due to and from connected Charities are disclosed in the notes to these accounts. There were no other transactions with trustees, connected persons or connected charities during the year and trustees received no remuneration and were paid no expenses during the year (2022: nil).
## 18
## Ultimate parent undertaking
The smallest and largest group into which the accounts of the Charity are consolidated is the ROHCGF, (Royal Opera House Covent Garden Foundation (Limited by guarantee), company number 480523, registered charity no. 211775 whose object it is to promote and assist in the advancement of education so far as such promotion and assistance shall be of a charitable nature and in particular, to raise the artistic taste of the country, and to procure and increase the appreciation and understanding of the musical art in all its forms), the ultimate parent undertaking incorporated in the United Kingdom. ROHCGF exercises dominant influence over the Charity being both the power to govern and the ability to benefit from the Charity’s activities. Three of the trustees are directors of ROHCGF only for so long as Sir Simon Robey remains a director of ROHCGF and otherwise no more than two of the Trustees are directors ROHCGF, all new trustees appointed must be done so in consultation with the ROHCGF and all grants are made to, or for the benefit of the ROHCGF. Its accounts are available to the public and may be obtained from The Royal Opera House, Covent Garden, London WC2E 9DD.
26
The Royal Opera House Endowment Fund 2000 Trustees’ report and financial statements Year Ended 31 August 2023 Charity number 1089928
## 19 Statement of financial activities for the year ended 31 August 2022 (restated)
||Note||||||
|---|---|---|---|---|---|---|
||||||2022|2021|
|||Unrestricted|Restricted|Endowment|Total|Total|
|||£|£|E|£|£|
|Income and endowments from:|||||||
|Donations and legacies
Investment|2
4|-
401,147|-
88,210|1,797,741
-|1,797,741
489,357|1,900,359
711,922|
|Total incoming||401,147|88,210|1,797,741|2,287,098|2,612,281|
|Expenditure on:|||||||
|Charitable activities|||||||
|Grants to Royal Opera House Covent|6|(677,000)|(915,949)|(4,479,051) ” (6,072,000)||(2,426,000)|
|Garden Foundation|||||||
|Raising funds|||||||
|Raising donations and legacies|7|(20,299)|(5)|-|(20,304)|(8,883)|
|Investment managers’ fees||-|(17,215)|(258,237)|(275,452)|(246,494)|
|Total expenditure||(697,299)|(933,169)|(4,737,288)|(6,367,756)|(2,681,377)|
|Net (loss) / gains on investments|8|-|(7,655)|(640,121)|(647,776)|4,461,799|
|Net (expenditure) / income||(296,152)|(852,614)|(3,579,668)|(4,728,434)|4,392,703|
|Transfer between funds|aS|296,152|-|(296,152)|-|-|
|Net movement in funds||-|(852,614)|(3,875,820)|(4,728,434)|4,392,703|
|Reconciliation offunds|||||||
|Fund balances brought forward at|14;15|210,890|2,629,304|48,680,601|51,520,795|47,128,092|
|1 September 2021|||||||
|Fund balances carried forward at|14;15|210,890|1,776,690|44,804,781|46,792,361|51,520,/95|
|31 August 2022 as previously stated|||||||
|Restatement|15|-|(1,581,735)|1,581,735|-|-|
|Fund balances carried forward at|14;15|210,890|194,955|46,386,516|46,792,361|51,520,795|
|31August2022restated|||||||
27