The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Charity number 1089928 Year Ended 31 August 2024
Contents Trustees, report Statement of trustees, responsibilities Independent auditor's report to the Trustees of the Royal Opera House Endowment Fund 2000 Statement of financial activities Balance sheet Notes 10 13 14 15
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 Trustees, report The trustees present their report together with the audited accounts for the year ended 31 August 2024. These accounts and annual returns will be filed with the Charity Commission. Reference and administrative details of the charityi 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 OQS 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, SWIY 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, WIS 2Fr Schroder & Co. Limited T/A Cazenove Capital l London Wall Place London, EC2Y SAU Trustees Dame Vivien Duffield (Chair) Sir Simon Robey (Deputy Chair, Independent Trustee) Tim Bunting (ROHCGF Trustee) Caroline Britton (ROHCGF Trustee) Hamish Forsyth (Independent Trustee) Lady Gavron (Independent Trustee) Simon Freakley (appointed March 2024) Secretary to the trustees Leah Hurst
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 Structurei 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 Covent Garden Foundation ('ROHCGF') appointment. The trustees shall ensure that no more than two of the Trustees are directors of 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. 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 ROHCGF), who attends the trustee meetings. Connected charities and companies ROHCGF registered charity no. 211775. The Charity holds investments and generates income to grant to ROHCGF. The principal activity of ROHCGF is the presentation of opera and ballet performances at the Royal Opera House and tours in the United Kingdom and overseas. During the season ROHCGF announced a change in its operating name from the'Royal Opera House, to the 'Royal Opera and Ballet,. The legal name remains ROHCGF. 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 no more than two of the Trustees are directors of 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 subsidiary of ROHCGF. registered company no. 04112266. This is a
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 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 other funds of £56.9m, 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 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, ROHCGF. 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 ROHCGF. RPHCGF 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. During the 2023124 season the ROHCGF delivered 425 live performances across both stages and 668,763 tickets were sold. Through the year 24 new productions were presented, of which 3 were world premieres. Remote audiences of 134,000 watched productions streamed online on RBO Stream. 18,000 subsidised tickets were bought by 16-25-year-olds through the Young RBO scheme. Over 10,000 children enjoyed schools, matinee performances at the RBO in addition to 93,000 students taking part in Create Programmes. 13 apprentices joined the apprenticeship scheme which was awarded 'Best Apprenticeship in Creative Industries,. ROHCGF'S achievements, supported by the Charityi are detailed in ROHCGF'S report and financial statements for 2023/24. Public Benefit The Charity delivers public benefit by making grants each year to ROHCGF. The Trustees of ROHCGF refer to the Charity Commission's general guidance on public benefit when shaping and reviewing the charity's aims, objects and future strategies. In setting the level of ticket prices, charges and concessions, and in developing digital and broadcast distribution, ROHCGF Trustees give careful consideration to the accessibility of ROHCGF 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 streamingi digital and broadcast activity and an extensive learning and participation programme.
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 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 ROHCGF. Each fund has a specific purpose: 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 ROHCGF up to a total value of 50/0 of the value of the funds at the start of the year. Paul Hamlyn Education Fund may be used to support the activities of the educational projects of ROHCGF. Applications are considered against the objects of the fund and the most suitable projects chosen in consultation with the Paul Hamlyn Foundation; Franklin Fund is used to support choreographic work at ROHCGF. Derek Butler Apprenticeship Fund is to be used to support the training of apprentices at ROHCGF. 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. Paul Ferguson Memorial Fund is used to support ballet. 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 Antonio Pappano Gala in 2023124 season. 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 £2,308,439 (Year ended 31 August 2023.. £2,324,000) to ROHCGF. The grants made were as follows: Productions £985,000: Main Endowment Fund - £815,000 to the core work of the artistic companies. Jean Sainsbury Fund £170,000 to support Andre Chenier. Education and Apprenticeships £556,000: Paul Hamlyn Education Fund - £416,000 to support a variety of learning and access projects. Derek Butler Apprenticeship Fund Scheme. £140,000 to support the Apprenticeship other £767,439: Susan A. Olde OBE Music Director Fund - £767,439 to support the Antonio Pappano Gala. At the start of the year, the investments were held with Stonehage Fleming Investment Management Limited, Troy Asset Management Limited and Newton Investment Management Limited. During the year the investments with both Troy and Newton were liquidated and reinvested in The Children's Investment Fund and Cazenove Capital, including some additional cash funds. Not including the additional investment, the combined capital growth and income return net of investment management fees was 10.9 % for the year ended 31 August 2024 (Year ended 31 August 2023 increase of 1.56 % ). The return for 2024 exceeded the blended target of CPI plus 3.50/0 (5.70/0). Investments with Stonehage Fleming which are long term in nature are being progressively wound down.
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 Financial review Grants totalling £2,308,439 (Year ended 31 August 2023 £2,324,000) were made to 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 ROHCGF. The investment managers, fees were £579,662 (Year ended 31 August 2023 £269,153). The total funds at 31 August 2024 were £56.9m (Year ended 31 August 2023 £52. 6m). The net increase in funds for the year as set out in the statement of financial activities was £4,299,517 ( Year ended 31 August 2023.. increase of £5,809,929), comprising net outgoing resources of £317,502 and net realised and unrealised gains of £4,617,019 on investments held with investment managers. Funds held with investment managers at the end of the year were £45,557,449 (2023.. £38,274,608) including cash holdings with investment managers of £144,987 (2023.. £9,566,971) disclosed under Fixed Assets. Additional cash balances at the bank and held by Cazenove in a cash fund at the end of the year were £11,294,493 (2023: £13,784,582). 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: Generate investment income to support the grant income available to support ROHCGF; and 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 +3.50/0 on a rolling basis. The Charity 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 ROHCGF. Reserves policy The trustees have reviewed the free reserves (comprising unrestricted net current assets) of the Charity which are £200,218 at 31 August 2024 (31 August 2023.. £253,837), 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 2024. The aim has been to build up free reserves to ensure that grants can be made to ROHCGF in future years even if investment income underperforms. 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 futu 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 ROHCGF and by achieving capital
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 growth in line with or in excess of investment objects. Grant applications will continue to be considered for the funding of projects which benefit ROHCGF 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 helshe ought to have taken as a trustee to make himself I 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 Dame Vivien Duffield Chair 19 March 2025
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 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: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP (FRS 102); make judgments and accounting estimates that are reasonable and prudent. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements. 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 irreg u larities.
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 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 2024 which comprise Statement of Financial Activities, the Balance Sheet and notes to the financial statements, inclLJding 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: give a true and fair view of the state of the charity's affairs as at 31 August 2024 and of its incoming resources and application of resources, including its income and expenditure for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 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. 10
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 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: the information given in the financial statements is inconsistent in any material respect with the trustees, report; or sufficient accounting records have not been kept; or the financial statements are not in agreement with the accounting records and returns, or 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: 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. 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. 11
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 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. We identified the greatest risk of material impact on the Financial Statements from irregularities, including fraud, to be within the timing of recognition of legacy and donation income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and those charged with governance 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 and reading minutes of meetings of the board. 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.or .uk auditorsres onsibilities. 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. Naziar Hashemi, Senior Statutory Auditor For and on behalf of Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Date: 26 March 2025 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. 12
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 Statement of financial activities for the year ended 31 August 2024 Note 2024 2023 Unre5trlcted Restricted Endowment Total Total Income and endowments from.. Donations and legacies Investment5 Other incorne 21,697 453.555 1.333,966 1,355,663 L240,047 913.733 1.152, 192 6,3(M),QKNJ 786,492 Total incoming 786,492 475,252 1,333,966 2,595,710 &365.925 Expenditure on.. Raising funds Raising donations and legacies Investment manager5. fees Charitsble activities Grants to Royal Opera House Covent Garden Limited 125.1111 125.1111 1579.6621 115.1351 1269,1531 1579.6621 1815.(D)I 1513,5021 1979.9371 12.30B.4391 12,324,ooKJI Total eKpenditure 1840.1111 1513.5021 11,559,599) 12.913.212) 12.608,2881 Net Bains/llossesl on investments 4,617.019 4.617.019 52,292 Net incomellexpenditurel 153,6191 138,2501 4,391,386 4,299,517 5.809,929 Transfer between funds 59,947 159.9471 Net movement in f unds 153,6191 21,697 4,331,439 4,299,S17 5,809,929 Reconciliation of fund5 Total funds brought forward 253,837 52,348.453 51601290 46,792,361 Total funds carried fonvard 15 2C(1,218 21,697 56.679.892 56,901,807 52,602,290 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 26 form part of these financial statements. 13
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 2024 2024 2023 Note Fixed assets I nvestments li 45,557,449 38,274,608 Current assets Debtors amounts due less than one year Cash at bank 12 141,118 11,294,493 548, IQ) 13,784,582 Total current assets 11,435,611 14,332,682 Creditors: amountsfalling due within one year 13 {91,2531 15,1))Jl Net current assets 11,344,358 14,327,682 Net assets 14 56,901,807 52,602,290 Unrestricted Restricted Endowment 15 200,218 21,697 56,679,892 253,837 15 15 52,348,453 Funds 15 56,901,807 52,602,290 These financial statements were approved and signed on 19 March 2025 by: Dame Vivien Duffield Chair The notes on pages 15 to 26 form part of these financial statements. 14
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 Notes (forming part of the financial statements) 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 l January 2019). There are no material departures from FRSIO2. The Charity meets the definition of a qualifying entity under FRS102 as the results of the Charity are consolidated into ROHCGF'S financial statements which are publicly available. In accordance with FRS 102 SI.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 page 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 ROHCGF. The Charity is a public benefit entity under FRSIO2. 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 Endowment funds. A breakdown of the level in 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 I: 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 I that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly. 15
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 Level 3.. Inputs are unobservable (i.e. for which market data is unavailable) for asset or liability. 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 Charityi 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 time- restriction 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 or 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. 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. 16
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 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. 17
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 Donations and legacies 2024 Total 2023 Total Restrlrted Permanent endowment Restrirted Permanent endowment Legacies Other donaiions 2L697 1,422,716 126.250 IW4,413 126,250 843,144. 70,589. 843,144 70,589 Total recelved In the year 21,697 1.548,966 1.570,663 913,733 913,733 Less.. Legacies in 2023 Over-accrued 1215,rJ)Ji I215,1) Total as per 50FA 21.697 1,333,966 1.355,663 913,733 913,733 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. 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. Im (2023: £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. Investment income 2024 2023 Finance lease interest income Dividend and interest income 136,092 1,016, 100 1,240,047 1,240,047 1,152,192 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. Other income During the year ended 31st August 2023 the Charity recognised £6,300,000 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. 18
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 Expenditure on raising donations and legacies 2024 2023 Marketing and publicity Ground rent ,iii 10, 135 25,111 15, 135 Grants During the year the Charity made grants of £2,308,439 (2023.. £2,324,000) to ROHCGF in support of the following productions/projects: Unrestyirted fund5 ftesthctedfuTrd5 Permanent Endowment Expendable Endowment Endowment Total Total Core work of artist1ccompanes Anflrechenipr Education projects Derek BuilerAppreniices Antonio Pappano Gala 815.( 88.737 416,( 7.469 L296 81,263 8l263 170,LDJ 416.1)X) 140,c 767,439 132,531 76S,143 132.531 766,143 513.502 97g,937 979,937 30E.435 Llnrèstrlrted funds Restrirted lunds Permanent Endowment Expendable Endowment Ed0ment Total Total Core workof artlstlccompanles lo Travioto Tl,934 92,( 92,Q66 170,LbJ Moyerfing Edutation proletts Derek 8utlerApprentices Susan olde 415,(KM) 24.176 35,233 415,CDJ 140, 833.1)X) 115,824 797.767 115,824 797,767 612,343 2.324.OX) Gains and losses on revaluations and disposals of investments 2024 2023 Realised gai ns on disposal of i nvestments Unrealised Ilossllgain on revaluation of other investments 4,379,366 237,653 18,466 33,826 4,617,019 52,292 During the year there were gains on investments totalling £4,617,019 (2023.. £52,292 gains). Of this £237,653 relates to unrealised gains primarily due to negative movements in the fair value of the investments held by Troy and Newton, offset by positive movements in the new investments held with TCI and Cazenove, £4,379,366 relates to realised gains on the disposal of investments in Troy and Newton funds. Realised gains on investments are classified as Endowment fLFnds within the Statement of financial activities, as they are reinvested within the investment portfolio and are not available to be utilised at the discretion of the trustees. 19
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 Trustees, remuneration Trustees received no remuneration and were paid no expenses during the year (2023.. nil). The Charity does not have any employees. io Taxation The Charity is considered to pass the tests set out in Paragraph I 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. li Fixed asset investments 2024 2023 Held with investment managers: Venture funds Quoted equities Hedge funds Bond5 107,610 35,251,008 4,881 10.048,963 144,987 129,160 12,642,182 5,115 12,308,405 9,566,971 3,622,775 Cash funds Gold Total investment5 Wlth Investment Managers 45,557,449 38,274,608 The movements in investments held with investment managers were as follows., 2023 Other investments Listed investments Other Investments Total investments sted investments Total investrnent5 Market value at beginning of the period Addition5 lat costl Disposa15 lat opening rnarket V31uel Net realised and UnalISed investment gains Market value at end ol the period 38,063,363 41089,154 139,426,284) 4,633,534 45,359,767 211,245 2,950 38,274, 42,092.101 139,426.2841 4.617,021 45.557,449 37.956,972 1,194 469,150 38,426,122 1,194 1205,IXX)I 52,292 38.274,608 1205,(ml 152,9051 211,245 16,513 105 197 38 C3 363 Historical cost at end of the period 4IIKIJ,C 193.346 41193,346 34,675,689 761,414 35,437,103 As at 31st August 2024 investments held with investment managers are measured at fair value, £45.4m (2023.. £38.Im) categorised as Level l and £O.Im (2023: £0.Im) as Level 3. 20
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 Split of investments between those based in the UK and those that are based overseas: UK Ovetseas Yotal UK Overseas Total 611,Inz 34,639,996 10,048,963 35.251C 10,(M8,953 111491 144,987 4,367,583 1,627,749 134,275 4,065.247 3,622.775 9,LKO,184 9,%2,632 13,427,767 I1.5.381 134,275 9.499,410 3,622,775 Bonds Alternative Investments. Cash Gold 111491 144.987 5,434,163 868,490 44,688,959 45,557,449 13.817.629 24,456,979 38,274.FA)8 Alternative investments Include Hedge Funds, Commodities, Property, Special Situations LLPS, Infrastructure and Currency Options. 12 Debtors 2024 2023 Debtors: amounts falling due within one year Investment income receivable Amounts owed by ROHCGF Accrued income 19,916 144, 625 113,791 289, 684 121,202 141,118 548, 1(XJ 13 Creditors: amounts falling due within one year 2024 2023 Amounts owing to ROHCGF Amounts owing to ROH Holdings Limited Other creditors 36,919 12,000 42,334 91,253 21
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 14 Analysis of net assets between funds Investments Cash at bank and in hand Other net curTent assets Total Unrestricted funds Restricted f unds Endowment 192,302 21,697 11,080,494 7,916 200,218 21,697 56,679,892 45,557,449 41,949 At 31 August 2024 45,557,449 11,294,493 49,865 56,901,807 Investrnents Cash at bank and in hand Other net current assets Total Unrestricted funds Restricted funds Endowment 114,212 139,625 253,837 38,274,608 13,670,370 403,475 52,348,453 At 31Augu5t 2023 38,274.608 13,784.582 543,1(K) 52,602,290 15 Funds At Isppternber 2023 Oth2r expendItre At31August 20Z4 Income IM fee5 Grants mède PemianenteTrdowrnent in endowtnent fund Paul Haffllyn Education Paul Ferguson M?mor4al Fund 35,B41615 9,623,93a Z,254,8l7 1,333.966 4043,127 253,OB8 155.419 40,697,156 9,730,328 2,451561 111,8Qil 58,126 Total petmanentendowrneni funds 47,721365 1,333.966 4,451,634 IS9,9481 52,884,015 EKpeDd8ble endowment lean Sain5bury Fund Franklin Fund tkrek Butle1Apprentlshlp Susan Olde Music ThrertorFund J,291647 1112881 IBL2S31 140.061 3.337.157 S72,$8L 761,9 12,1051 14765 &5S5 457.110 L032 1766,1431 TDtsI expandable endowment fund5 4.62&L 115,6WI 1979.9371 165,385 3,195,PA7 Restrlded fyThds 21,697 297.926 58.126 88,737 21,697 14l6.(K)Dl 118,074 Paul Ferguson Memorial Fund lean 5ainsbury Fund 188,737) Derek eutlerApprenticeship Susan Old@ Mu5ii 01CloT Fund 17.4691 1.296 Total restrittedfund5 475.252 1513.5021 59,947 2L697 Unre5trlcted lunds General 251837 786,492 I815,) ?.218 Total fund5 52,6Q1290 2.595,710 1579,6621 12,30&4391 4,617,019 56,gJI.807 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. 22
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 Transfers of £59,947 relate to reinvestment of income into the endowment funds and payment of grants from permanent endowment funds as allowed by the Paul Hamlyn Education Fund. Funds currently represent: The Main Endowment Fund is a permanent Endowment. This comprises the surplus on the ROHCGF Development Appeal held in the form of cash and property assets, and subsequent donations and legacies. 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 ROHCGF up to a total value of 50/0 of the value of the funds at the start of the year. This is an expendable endowment. 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 ROHCGF. This is a permanent endowment. The funding agreement was amended 28 September 2022 to approve the payment of £3,774,000 to the Royal Opera and Ballet as an exceptional grant in the 2022 financial year, being part of the income accumulated in the Paul Hamlyn Educational Fund. 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 of ROHCGF, and is therefore an expendable endowment. The Derek Butler Apprenticeship Fund is a separate fund created from a donation of £1.875m from the Derek Butler Trust to endow the ROHCGF 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. The Paul Ferguson Memorial Fund was established by the Peyton Trust as a permanent endowment which supports ballet. 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 2017118. The sixth payment was made in the year 22/23. The remaining income generated by the fund was approved to be used for a special gala in honour of Sir Antonio Pappano in the 2023124 season. 23
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 Funds (as at 31 August 2023) Ati spternb@r 2022 a5 prevlouslv stated RoStaLÉment Ati sepletnber 1022 05 restated At31 Transfers August 2023 Incomé Expenditure Gainslllogsèsl ?rent endowment Main Endowment fund P3uI Hamlyfj Educatso P3uI Ferguson Memon31 Fund 28.711,726 9.799.402 2,210,29D 28,711.726 9,799,402 2.210.290 7,213,734 1143.5811 174,0021 67.851 173,1851 51,645 16.1151 35,843,615 127,6821 9.623.933 4.519 2,254,817 Total permanent endowment fvnds 4D,721 41B 40,7?1,418 7,213,734 1229,820 46,311 129,2791 47 722 365 Expendable endowrnent Jèan $3insbury Fund Franklin Fund Derek euder AppreDbceship Su53n Olde Music Director Fund 3,390,453 551 692.359 3,390,453 551 692,359 1,581,735 16,011 3,290.647 544 572.981 761,916 1,738 ILI.7651 1,581,735 1808,0541 TDtal Èxpandable endowment funds 4,083,363 I,S81,735 5,fjfj5,098 1.044,991 5,981 4 626 088 Restrlcted funds Paul Hamlyn Education Paul Ferguson MemDrial Fund Jèan 5è1nsbury Fund Fran1n Fund Derek Butler AppceShiP Susan Qlde Mu51C Director Fund 189,845 189,845 147,473 58,404 77,934 1415,0001 160.0001 177,9341 27,682 1.596 {5) 5,115 1,5BI,735 {5} 5,k15 19,061 35.233 124,1761 135,2331 11,5BI,7351 Total restncted funds 1,776,69D 1.58l.7351 194,955 188.113 1612,146 29.278 Unrestrlcted fund5 G&ner31 2ID B90 210 890 764.080 721,132 253 837 Total lunds 46 791.361 46 792 361 8.365,927 2 608 2891 52.602,Z9tI 16 Commitments The Charity has no capital commitments as at 31 August 2024 (2023: nil). The Charity has commitments for future minimum lease payments under a non- cancellable operating lease as follows: 2024 2023 Not laterthan one year Laterthan one year and not laterthan five years Laterthan five years 20,000 1,061,235 20,000 1,066,235 17 Transactions with trustees, connected persons, connected Charities and other related parties Connected Charities (a) Royal Opera House Covent Garden Foundation ('ROHCGF') charity no. 211775 and registered company no. 480523 The principal activity of 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 registered 24
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 before any exercise of this power. The trustees ensure no more than two of the trustees are directors of ROHCGF and that no employee of ROHCGF is appointed a trustee. Grants made to ROHCGF are disclosed in note 7. (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 for the retail units on the site of the Royal Opera House. Up to the date of lease variation during the August 2023 financial year, the Charity had a 50/0 income interest in the leases. The ground rent charged by ROH Holdings Ltd to the Charity is disclosed in note 6 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 (2023: 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. 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. 25
The Royal Opera House Endowment Fund 2000 Trustees, report and financial statements Year Ended 31 August 2024 Charity number 1089928 19 Statement of financial activities for the year ended 31 August 2023 2023 2022 Note Unrestrlcted Restricted Endowment Total Total Income and endowments from: Donations and legacies InvestnEnt Other incoffe 913,733 913.733 1.152.192 6.300.000 1,797,741 489,357 764,082 388.110 6,300,000 Total incomlng 764,082 388.110 7,213,733 8,365.925 2,287,098 Expendlture on: Raislng funds PAlslng donatbns and legacles Investffent m)nager5' fees Charitable actlvltles Grants to Royal Opera House Covent Garden Foundatlon (15,135) (15,135) (269, 153) 120,3041 {275,4521 (269,153) (706,000) (612,343) {1,005,657) (2.324.000) 16,072,000) Total expenditure (721.135) (612,343) (1.274.810) (2,608,288) 16,367,756) Net gains/(losses) on investments 52,292 52,292 1647,776) Net income l (expenditure) 42,947 (224.233) 5,991,215 5.809.929 {4,728,434) Transfer between funds 15 29.278 (29,278) Net movement in funds 42,947 (194,955) 5.961.937 5,809,929 14,728,434) Reconclllatlon of funds Fund balances brought forward at I September 2022 as previously stated 14,'15 210.890 1,776,690 44,804,781 46,792,361 51,520,795 ReStateEnt 15 (1,581,735) 1.581,735 Fund balances brought forward at I septerrer 2022 restated 14,'15 210,890 194,955 46,386,516 46.792,361 51,520,795 Fund balances carrred forward at 31 August 2023 14,'15 253,837 52,348,453 52,602,290 46,792,361 26