2020-08-31-accounts

Report ofthe Trustees,	incorporating	Strategic report
Report ofthe Independent Auditors
Statement of Financial	Activities
Balance Sheet
Statement ofCash Flows
Notes to the Financial	Statements

Full-time	BAstudents studying for a degree	in Fine Art	75%
Full-time	practicing fine artists under 40years ofage		75%
Primary and secondary school teachers who		teach art	50%
Individuals	on job seekers allowance		50%
Individuals	who receive disability support		50%
Tower Hamlets and Hackney residents			25%
Individuals	over the age of60		10%

		RISK			MITIGATION
The School's annual		fundraising		is not sufficient	A fundraising strategy that has clear targets,	is
to cover	its costs ofoperation				sufficiently resourced and closely monitored
The School does not		have fit-for-purpose			Maximise teaching space within our share of
premises	in which to deliver		its	programmes.	Charlotte Road building (one third ownership);
					take a measured view ofcommitting resources
					when the School does not have long-term
					security oftenure elsewhere

	RISK			MITIGATION
The School must close its teaching spaces due				Implement online learning programme;	ensure
to a global pandemic				building Operation Guidelines meet standards
				to mitigate contamination, follow government
				or local guidance; ensure a robust Risk
				Assessment is carried out.
The School's course	income	is	reduced due to a	Move courses online to continue to teach
global pandemic				students and generate course income;
				reduction in building costs due to building
				closure will help offset loss of income;
				subscribe to government relief programmes
The School's annual	fundraising		is reduced due	Unrestricted general reserves covering	at least
to a global pandemic				six months ofoperating expenditure;
				reduce running costs through building	closure
				and government relief programmes; roll out		a
				fundraising strategy in response to the
				pandemic
There is an Outbreak	at the	School		Follow Outbreak plan and Operations
				Guidelines; temporary closure if necessary;		Risk
				Assessment; effective communication	of
				policies and plan to all stakeholders

Richard Weaver (Senior Statutory	Auditor)		10Queen Street Place
For and on behalf of Haysmacintyre	LLP, Statutory	Auditors	London
24 March 2021			EC4R 1AG

Statement offinancial activi Year ended 31August 2020	ties including	income	and expe	nditure account
				Unrestricted Funds	Restricted Funds	Endowment Funds	Total Funds	Total Funds
			Notes	31-Aug-20	31-Aug-20	31-Aug-20	31-Aug-20	31-Aug-19
Income from:
Donations and legames				595,529	906,435	607,096	2,109,060	2,126,932
Chantable actiwties
Education				911,435			911,435	862,833
Investments				21,749		50,742	72,491	210,969
Other								201,383
Total income			2	1,528,713	906,435	657,838	3,092,986	3,402,117
Expenditure on:
Raising funds				296,459			296,459	364,358
Chantable actiwties
Education				1,853,232	959,777		2,813,009	3,025,038
Total expenditure			3	2,149,691	959,777		3,109,468	3,389,396
Net income / (expenditure)	before change	in		(620,978)	(53,342)	657,838	(16,482)	12,721
market value of investments	and transfers
Change in market value of investments						(76,627)	(76,627)	(392,434)
Net income / (expenditure)	forthe year			(620,978)	(53,342)	581,211	(93,109)	(379,713)
Transfer - allocation oftotal	return			224,472		(224,472)
Transfer between funds				400,000		(400,000)
Net movement in funds				3,494	(53,342)	(43,261)	(93,109)	(379,713)
Totalfunds brought forward				2,905,459	147,235	10,845,609	13,898,303	14,278,016
Total funds carried forward			11,12	2,908,953	93,893	10,802,348	13,805,194	13,898,303

As at 31August 20	20
		Notes	31-Aug-20	31-Aug-19
			f	f
Fixed assets
Tangible assets			2,295,535	2,401,364
Investments			9,173,920	9,115,360
			11,469,455	11,516,724
Current assets
Debtors			438,724	563,655
Cash at bank and	in hand		2,648,647	2,477,817
			3,087,371	3,041,472
Creditors: amounts	falling due within one year	10	(751,632)	(659,893)
Net current assets			2,335,739	2,381,579
Total net assets			13,805,194	13,898,303
Represented by:
Restricted funds			93,893	147,235
Endowment funds			10,802,348	10,845,609
Designated fund			2,189,220	2,219,887
General fund			719,733	685,572
		11,12	13,805,194	13,898,303

The Royal Drawing School Statement ofcash flows year ended 31August 2020
			31-Aug-20		31-Aug-19
			f		5
Cash flows from operating activities:
Net income / (expenditure) in the year			(93,109)		(379,713)
Depreaation charges			123,388		60,241
(Gains)/losses on investments			76,627		392,434
Dividends, interest and rent from investments			(72,491)		(210,969)
Receipt ofendowment			(607,096)		(502,209)
(Increase)/decrease in debtors			124,931		785,508
Increase/(decrease) in creditors			91,739		154,784
Net cash provided by / (used in) operating		activities		(356,011)	300,076
Cash flows from investing activities:
Dividends, interest and rents from investments			72,491		210,969
Purchase offixed assets			(17,559)		(28,951)
Disposal offixed assets					716
Proceeds from sale of investments			3,174,021		1,500,950
Purchase of investments			(3,309,208)		(3,245,175)
Net cash provided by/ (used in) investing		activities		(80,255)	(1,561,491)
Cash flows from financing activities:
Receipt ofendowment			607,096		502,209
Net cash provided by / (used in) financing		activities		607,096	502,209
Change in cash and cash equivalents	in the	year		170,830	(759,206)
Cash and cash equivalents at the beginning		ofthe year		2,477,817	3,237,023
Cash and cash equivalents atthe end	ofthe year			2,648,647	2,477,817

2	Income
						Restricted	Endowment
				General	Funds	Funds	Funds	Total	Total
				31-Aug-20		31-Aug-20	31-Aug-20	31-Aug-20	31-A ug-19
				f		f	f	f	f
	Donations and legacies			595,529		906,435	607,096	2,109,060	2,126,932
	Charitable activities
	Course fees			853,119				853,119	787,165
	Materials				9,459			9,459	16,685
	Other income				48,857			48,857	58,983
				911,435				911,435	862,833
	Investments
	Deposit account interest				21,749			21,749	17,315
	Dividends and interest						50,742	50,742	193,654
					21,749		50,742	72,491	210,969
	Other
	Exchange (gains)/losses								201,383
									201,383
				1,528,713		906,435	657,838	3,092,986	3,402,117
3	Expenditure							31-Aug-20	31-A ug-19
								f	f
	Raising Funds
	Staff costs (Note 5)							183,803	142,088
	Publicity and fundraising							112,656	222,270
								296,459	364,358
	Charitable activities
	Educational activity:
	Staff costs (Note 5)							1,052,802	1,093,320
	Other direct costs (Note	4)						1,500,245	1,779,479
	Support costs (Note 4)							259,962	152,239
								2,813,009	3,025,038
								3,109,468	3,389,396
4	Other direct costs and support		costs					31-Aug-20	31-A ug-19
								f	f
	Other direct costs comprise:
	Tutors and models							565,813	679,276
	Premises costs (including	staff costs - Note 5)						450,473	467,740
	Bursaries and prizes							61,397	74,535
	Other direct costs (including		depreciation)					422,562	557,928
								1,500,245	1,779,479
	Support costs comprise:
	Financial and secretarial							54,099	77,408
	Exchange (gains)/losses							151,331
	Insurance							15,503	17,007
	Bank interest and charges							22,891	16,188
	Governance:
	Legal and corporate costs							2,898	28,266
	Audit fees (Note 6)							13,240	13,370
								259,962	152,239

Yea	r ended 31August 2020
5	Staff costs												31-Aug-20		31-A ug-19
														E		f
	Wages and salaries												1,131,740		1,081,495
	National insurance													90,704		100,837
	Pension costs													78,322		71,251
													1,300,766		1,253,583
	Temporary staff costs															2,939
	Recruitment and training		costs											12,713		51,946
													1,313,479		1,308,468
	One employee earned		annual	remuneration		between	f60,000 and		f70,000 during		the year (2019:two), one			employee	earned	annual
	remuneration between		f70,000 and f80,000 during the					year (2019:	one)	and one	emplyee	earned	remuneration	between	f110,000 and
	f120,000 during the year (2019:one).
	Pension costs for higher		paid staff		were:									26,050		27,156
	The average number of		employees		(head count based		on	number ofstaff employed)			during the year		was 60 (2019:68).The average			number
	offull time equivalent	employees			during the year analysed			by function,	was:
													31-Aug-20		31-A ug-19
													Number		Number
	Artistic and executive directors													2		2
	Education programmes													20		20
	Technicians
														28		28

Net (outgoing)/incoming	resources before other recognised	gains and losses	31-Aug-20	31-A ug-19
			E	f
This is stated after charging:
Auditors' remuneration	(excl VAT)		13,240	13,370
Depreciation			123,388	60,241

7	Tangible fix	ed assets
							yyebsite &	Fixtures,
				Freehold	land	Leasehold	Booking	fittings and
				and buildings		Improvements	System	equipment	Total
				E		E	E	E	E
	Cost
	At 31August	2019		2,416,667		226,336	79,626	51,852	2,774,481
	Additions					4,659	12,900		17,559
	Disposals
	At 31August	2020		2,416,667		230,995	92,526	51,852	2,792,040
	Depreciation
	At 31August	2019		196,780		70,977	67,626	37,734	373,117
	Charge for the year			30,667		80,557	2,999	9,165	123,388
	Disposals
	At 31August	2020		227,447		151,534	70,625	46,899	496,505
	Net book value
	At 31August	2020		2,189,220		79,461	21,901	4,953	2,295,535
	At 31August	2019		2,219,887		155,359	12,000	14,118	2,401,364
	All ofthe above assets are used for charitable		purposes.
8	Investments
							31-Aug-20	31-Aug-20	31-Aug-20
							E	E	E
	Current Year						Permanent	Expendable	Total
	Market value at 31August 2019						4,447,438	4,667,922	9,115,360
	Additions at cost						1,139,420	2,169,788	3,309,208
	Disposals at	cost					(1,255,293)	(183,184)	(1,438,477)
	Movement	in cash held for investments					(144,200)	(1,591,344)	(1,735,544)
	Change in market value						113,743	(190,370)	(76,627)
	Market value at 31August 2020						4,301,108	4,872,812	9,173,920
							31-Aug-19	31-Aug-19	31-Aug-19
							E	E	E
	Prior Year						Permanent	Expendable	Total
	Market value at 31August 2018						4,537,771	3,225,798	7,763,569
	Additions at cost						1,434,329	1,810,846	3,245,175
	Disposals at	cost					(2,016,026)	(18,746)	(2,034,772)
	Movement	in cash held for investments					533,822		533,822
	Change in market value						(42,458)	(349,976)	(392,434)
	Market value at 31August 2019						4,447,438	4,667,922	9,115,360

Yea	r ended 31August 2020
8	Investments (continued)
	Market Value							31-Aug-20	31-Aug-20	31-Aug-20
								f	f	f
	Current Year							Permanent	Expendable	Total
	Analysis ofinvestments
	Oaktree Capital Management,			L.P. (four funds)				2,096,264	79,753	2,176,017
	Ruffer Total Return	Fund	—C inc GBP						1,183,077	1,183,077
	TM Lansdowne Developed		Markets		Long Only SRI		Fund GBP		1,605,580	1,605,580
	GAM Star PLC - Credit Opportunities					-Institutional	- (GBP)	1,040,500		1,040,500
	Veritas Funds PLC -	Glbal	Focus Fund			-C- (GBP)			1,665,443	1,665,443
	Other Investments							280,994	338,929	619,923
	Cash held for investment							883,350	30	883,380
	Total market value							4,301,108	4,872,812	9,173,920
								31-Aug-19	31-A ug-19	31-A ug-19
								f	f	f
	Prior Year							Permanent	Expendable	Total
	Analysis ofinvestments
	Oaktree Capital Management,			L.P. (Four funds)				2,614,161	142,188	2,756,349
	Ruffer Total Return	Fund	—C inc GBP						1,137,022	1,137,022
	TM Lansdowne Developed		Markets		Long Only SRI		Fund GBP		1,737,249	1,737,249
	GAM Star PLC - Credit Opportunities					-Institutional	- (GBP)	805,725		805,725
	Cash held for investment							1,027,552	1,651,463	2,679,015
	Total market value							4,447,438	4,667,922	9,115,360
	Income for the year							31-Aug-20	31-Aug-20	31-Aug-20
								f	f	f
	Current Year							Permanent	Expendable	Total
	Analysis ofinvestments
	Oaktree Capital Management,			L.P. (four funds)				(45,715)	3,115	(42,600)
	Ruffer Total Return	Fund	—C inc GBP						16,771	16,771
	Other Investments							10,114	14,839	24,953
	Cash held for investment								51,618	51,618
	Total income							(35,601)	86,343	50,742
								31-Aug-19	31-A ug-19	31-A ug-19
								f	f	f
	Prior Year							Permanent	Expendable	Total
	Analysis ofinvestments
	Oaktree Capital Management,			L.P. (four funds)				176,677	2,438	179,115
	TM Lansdowne Developed		Markets		Long Only SRI		Fund GBP		16,291	16,291
	Cash held for investment								(1,752)	(1,752)
	Total income							176,677	16,977	193,654

						31-Aug-20	31-A ug-19
						6	f
Opening value ofpermanent endowment						4,447,438	4,537,771
Less: Original value ofthe gift						(4,000,000)	(4,000,000)
Unapplied	total return brought forward					447,438	537,771
Add
Investment	return: dividends and	interest				(35,601)	176,677
Investment	return: gains and (losses)					113,743	(42,458)
Unapplied	total return before transfer to income					525,580	671,990
Less
Total return	applied					(224,472)	(224,552)
Unapplied	return as at 31August	2020				301,108	447,438
Add
Original value ofthe gift brought forward						4,000,000	4,000,000
New endowments in the year
Permanent	endowment including	unapplied	total	return	as at 31 August
2020constituting the investment		fund				4,301,108	4,447,438

Year	ended 31August 2	0	2	0
9	Debtors
												31-Aug-20	31-A ug-19
												f	f
	Trade debtors											27,584	57,191
	Donations receivable											305,389	305,946
	Prepayments											101,976	101,451
	Other debtors											3,775	99,067
												438,724	563,655
10	Creditors: amounts			falling		due within	one year					31-Aug-20	31-A ug-19
												f	f
	Trade creditors											201,356	197,165
	Accruals											21,497	32,965
	Deferred income											464,601	376,114
	Other taxes and social				security							28,299	29,473
	Sundry creditors											35,879	24,176
												751,632	659,893
	Opening deferred		income									376,114	194,342
	Released in the year											(376,114)	(194,342)
	Income deferred	in the			current year							464,601	376,114
												464,601	376,114
11	Movement on funds											Other
								At 31August				recognised	At 31August
								2019	Income	Expenditure	Transfer	gains / losses	2020
	Current Year							f		f		f	f
	Unrestricted funds
	General Fund							685,572	1,528,713	(2,119,024)	624,472		719,733
	Designated Property				Fund			2,219,887		(30,667)			2,189,220
								2,905,459	1,528,713	(2,149,691)	624,472		2,908,953
	Restricted funds
	Artist On Film							20,602					20,602
	Drawing Year Fund								272,910	(263,860)			9,050
	Young Artists Programme								26,605	(26,605)
	Foundation Year		Fund					126,633	346,822	(415,894)			57,561
	Denis Mahon								10,000	(3,320(			6,680
	Alumni & DH								7,685	(7,685)
	Public Programme			General					43,473	(43,473)
	Scholarship and		general			restricted			198,940	(198,940)
								147,235	906,435	(959,777)			93,893
	Endowment funds
	Permanent endowments							4,447,438	(35,601)		(224,472)	113,743	4,301,108
	Expendable endowments							6,398,171	693,439		(400,000)	(190,370)	6,501,240
								10,845,609	657,838		(624,472)	(76,627)	10,802,348
	Totalfunds							13,898,303	3,092,986	(3,109,468)		(76,627)	13,805,194

							Other
			At 31August				recognised	At 31August
			2018	Income	Expenditure	Transfer	gains / losses	2019
Prior Year			f		f		f	f
Unrestricted funds
General	Fund		657,695	1,985,565	(2,632,240)	674,552		685,572
Designated Property		Fund	2,250,554		(30,667)			2,219,887
			2,908,249	1,985,565	(2,662,907)	674,552		2,905,459
Restricted	funds
Artist On	Film		20,602					20,602
Drawing	Year Fund			292,228	(292,228)
Young Artists Programme				102,150	(102,150)
Foundation Year Fund			132,433	272,372	(278,172)			126,633
Dumfries	House Residencies			2,444	(2,444)
I IFA				10,000	(10,000)
Denis Mahon				5,027	(5,027)
Residencies				31,968	(31,968)
Charlotte	Road Building Improvements			4,500	(4,500)
			153,035	720,689	(726,489)			147,235
Endowment	funds
Permanent endowments			4,537,771	176,677		(224,552)	(42,458)	4,447,438
Expendable endowments			6,678,961	519,186		(450,000)	(349,976)	6,398,171
			11,216,732	695,863		(674,552)	(392,434)	10,845,609
Totalfunds			14,278,016	3,402,117	(3,389,396)		(392,434)	13,898,303

Designated Property	Fund
This is a designated fund representing		the net book		value ofthe charity's		one third share of1922 Charlotte				Road, London	EC2A 3SG.
Artist On Film
This fund isto support	the delivery of	the School's Artist on Film series.
Drawing Year Fund
This fund isto support	the delivery of	the School's MA level Drawing Year.
Alumni & DH
This fund isto support	the professional	development		and artistic practice of			alumni ofthe School's		Drawing	Year programme.
Young Artists Programme
This fund isto support	the School's Young Artists Programme				of weekly drawing			classes for children	and young people aged 11-18.
Foundation Year Fund
This fund isto support	the delivery of	the School's Foundation			Year.
Dumfries House Residencies
This fund isto support	the School's artist residency			programme	at Dumfries		House.
Artists Residencies
This fund isto support	the School's international		artist residencies programme.
Denis Mahon
This fund isto support	the artistic practice ofan		alumnus ofthe School's			MA	level Drawing Year.
Public Programme General
This fund isto update	the fabric ofthe	building	at 19-22Charlotte Road.

Note Year	s to the financial statements ended 31August 2020	s to the financial statements ended 31August 2020	s to the financial statements ended 31August 2020
11	Movement on funds (continued)
	Endowment Funds
				Permanent	Expendable	Total
				Endowments	Endowments	Endowments
	Current Year
	Balance brought forward		at 1September 2019	4,447,438	6,398,171	10,845,609
	Endowment capital received
	Howard & Nancy Marks				607,096	607,096
	Dividends and interest	received net ofexpenses		(35,601)	86,343	50,742
				4,411,837	7,091,610	11,503,447
	Change in market value	of investments		113,743	(190,370)	(76,627)
	Transfer to General Fund		(note 11)		(400,000)	(400,000)
	Total return applied			(224,472)		(224,472)
	Balance carried forward	at 31August 2020		4301108	6501240	10802 348
	Represented by:
	Fixed Asset Investments			4,301,108	4,872,812	9,173,920
	Cash				1,628,428	1,628,428
				4301108	6501240	10802 348
				Permanent	Expendable	Total
				Endowments	Endowments	Endowments
	Prior Year
	Balance brought forward		at 1September 2018	4,537,771	6,678,961	11,216,732
	Endowment capital received
	Anneberg				90,798	90,798
	Bruce & Martha Karsh				411,411	411,411
	Dividends and interest	received		176,677	16,977	193,654
				4,714,448	7,198,147	11,912,595
	Change in market value	of investments		(42,458)	(349,976)	(392,434)
	Transfer to General Fund		(note 11)		(450,000)	(450,000)
	Total return applied			(224,552)		(224,552)
	Balance carried forward	at 31August 2019		4,447,438	6,398,171	10,845,609
	Represented by:
	Fixed Asset Investments			4,447,438	4,667,922	9,115,360
	Cash				1,730,249	1,730,249
				4,447,438	6,398,171	10,845,609

yal Drawing School to the financial statements nded 31August 2020
Analysis ofnet assets between	funds
		General	Designated	Restricted	Endowment	Total
		Fund	Fund	Funds	Funds	Funds
Currentyear		2020	2020	2020	2020	2020
		6	6	6	6	E
Fixed assets		48,754	2,189,220	57,561	9,173,920	11,469,455
Net current assets		670,979		36,332	1,628,428	2,335,739
		719,733	2,189,220	93,893	10,802,348	13,805,194
		General	Designated	Restricted	Endowment	Total
		Fund	Fund	Funds	Funds	Funds
Prior year		2019	2019	2019	2019	2019
						E
Tangible fixed assets		54,844	2,219,887	126,633	9,115,360	11,516,724
Net current assets		630,728		20,602	1,730,249	2,381,579
		685,572	2,219,887	147,235	10,845,609	13,898,303

		31-Aug-20	31-Aug-19
Land and	buildings	6	f
Payable	within one year	27,535	17,001
Payable	in two to five years
		31-Aug-20	31-A ug-19
Photocopier
Payable	within one year	3,964	5,420
Payable	in two to five years		3,964