RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023 Company number 5644697 Charity number 1114705 RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
CONTENTS
| Page | |
|---|---|
| Trustees and professional advisers | 1 |
| Trustees’ report | 2 |
| Statement of responsibilities of Trustees | 5 |
| Independent auditor’s report to the Members | 6 |
| Statement of financial activities | 10 |
| Balance sheet | 11 |
| Statement of cash flows | 12 |
| Notes to the financial statements | 13 |
RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
TRUSTEES AND PROFESSIONAL ADVISERS
| Trustees | Richard Butler Adams (Chair) |
|---|---|
| Susan Cambridge (appointed 13 June 2023) | |
| Nigel Reid | |
| Katie Thorpe (resigned 31 March 2023) | |
| Company Secretary | Clare Buckle |
| Registered Office and | Clifton Lodge |
| principal address | St Margaret’s Drive |
| Twickenham | |
| TW1 1QN | |
| Auditor | Buzzacott LLP |
| 130 Wood Street | |
| London | |
| EC2V 6DL | |
| Bankers | Allica Bank Limited |
| 4thFloor, 164 Bishopsgate | |
| London | |
| EC2M 4LX |
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
TRUSTEES’ REPORT
The Trustees, who are also directors for the purposes of the Companies Act, present their report and the financial statements of Rambert School of Ballet and Contemporary Dance Trust (the Trust) for the year ended 31 July 2023.
The financial statements have been prepared in accordance with the accounting policies set out on pages 13 to 15 of the attached financial statements. They comply with the charity’s trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102).
Objectives and public benefit
The formal objects of the Trust are:
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to advance the education of the public in the arts of ballet, mime and contemporary dance; and
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to promote further and higher education in, and knowledge, understanding and appreciation of (those arts) primarily by supporting and providing facilities for the Rambert School of Ballet and Contemporary Dance (the School), which is a registered charity number 1098900.
The work of the School has Higher Education status through its registration with the Office for Students and the validation of its courses by the University of Kent.
The Charity Commission emphasises the importance of Trustees demonstrating that their charity’s aims are for the public benefit. The Trustees have complied with the duty under Section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.
As an educational institution and charity, the School’s principal beneficiaries are its students who are given the opportunity to receive an intensive, supportive and world-class education and training. The School selects students on the basis of their talent, propensity for training and with the appropriate pre-vocational experience. Places are offered regardless of personal, social or financial background and students may apply to the School for financial assistance.
The training also includes public performances enabling the wider community to benefit from the students’ artistic skills and experience.
Activities which fulfil the School’s charitable objects include education, knowledge exchange and research, and community engagement.
In the light of the foregoing, the Trustees are in no doubt that the School operates for the public benefit, as in turn does the Trust as one of the School’s most important enablers.
Structure and history
The Trust was incorporated as a company limited by guarantee on 5 December 2005 and it was registered as a charity on 16 June 2006.
In May 2006 the Trust acquired from the School two properties in Twickenham – Clifton Lodge, St Margaret’s Drive, and The Violet Needham Chapel, Kilmorey Road. These had been purchased by the School in July 2005. Shortly after the acquisition by the Trust it granted a 25-year lease to the School.
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
TRUSTEES’ REPORT - continued
Financial review
The financial statements showing the Trust’s financial activities during the year, and its financial position at the end of the year, are set out on pages 10 and 11.
Statement of financial activities
In the year to 31 July 2023, the Trust’s operating income, being rent receivable from the School plus a small amount of interest receivable, amounted to £330,161 (2022: £330,000 ). In addition to this, on 22 June 2023 the Linbury Trust waived its outstanding loan to the Trust of £1,500,000 thereby benefiting the Trust by this amount. Although not a cash benefit, this has been treated as income in the Statement of Financial Activities, in accordance with the Charities SORP FRS 102. The Trustees of the Trust are extremely grateful to the Linbury Trust for their generosity and support.
Expenditure in the year amounted to £119,257 ( 2022: £129,842) , as detailed in notes 3 and 4. The principal constituents of that expenditure are interest payable on the Trust’s bank loan and a grant made to the School of £75,000.
The net income for the year of £1,710,905 ( 2022: £200,158) has been added to unrestricted funds brought forward at 1 August 2022, bringing the total of such funds to £6,892,612 ( 2022: £ 5,181,707 ).
Balance sheet at 31 July 2023
The balance sheet explains how those funds totalling £6,892,612 ( 2022: £5,181,707) were represented at the year-end in terms of assets and liabilities.
The Trust’s investment in property, being the freehold land and buildings occupied by the School, is shown at a valuation of £7,569,000 ( 2022: £7,569,000) . Further details are set out in note 6.
Current liabilities were £278,247 ( 2022: £268,281) as detailed in note 7. These liabilities include a proportion of the rent received in advance at the balance sheet date and the capital element of the bank loan repayments falling due over the course of the year to 31 July 2024. Rent is received shortly before the corresponding quarter’s interest and loan repayments fall due, ensuring that in practice a positive bank balance is maintained. Longer term liabilities totalled £473,442 ( 2022: £2,193,979) , as detailed in note 8, and now exclude the Linbury Loan of £1,500,000 which was cancelled in June 2023.
During the previous financial year Allied Irish Bank transferred its UK loan portfolio to Allica Bank Limited and the Trust’s loan formed part of this transfer. The repayment terms remain the same. In March 2023, the Trust transferred its current account to Allica Bank Limited.
Reserves and liquidity
The Trust’s reserves (all held as unrestricted funds) are currently represented wholly by investment in property. The rent of £330,000 receivable from the School is more than sufficient to cover the contractual quarterly payments to Allica Bank which are fixed at £250,407 each year (capital and interest combined, see note 9), under a programme agreed to run until 31 May 2026.
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
TRUSTEES’ REPORT - continued
The Trustees are satisfied that, assuming that the School meets its obligations to pay rent and its other obligations under the lease between them, the Trust’s financial position is suitably balanced to meet its future liabilities for the long term. The Trustees are very much aware that the School’s own cash flows will depend on the level of financial support it receives from central government through the Office for Students. This funding has been confirmed for the next four years.
Trustees
The Trustees who served during the year are listed on page 1. Each of the current Trustees has extensive experience of trusteeship generally and of the charity sector more specifically. Each has knowledge of the School’s operations and management. Future Trustees may be expected to be selected from individuals with suitable experience.
Key management personnel
The Trust has no staff. The key management personnel of the Trust are the Trustees. The School’s Finance Director and Finance Manager undertake various administrative tasks including financial statements preparation. Decisions regarding financial matters, and more generally, are taken by the Trustees.
Members and members’ liability
The members of the charitable company are the Trustees. Each member undertakes to contribute an amount not exceeding £1 in the event of the Trust being wound up while a member or within one year of ceasing to be a member.
Risk management
The Trustees have carried out an assessment of the major risks to which the Trust is exposed and these are monitored on a regular basis. Systems are in place to mitigate these risks. The key risk identified is the ability of the School to make its rent payments on a timely basis so that the Trust can meet its obligations to its loan creditor, Allica Bank Limited. The Trust receives regular financial updates from the School to monitor this risk.
Small Company Provisions
This report has been prepared in accordance with the special provisions in Part 15 of the Companies Act 2006 relating to small companies.
Approved by the Board on 28 November 2023 and signed on their behalf by:
Company Secretary
Clare Buckle
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
STATEMENT OF RESPONSIBILITIES OF TRUSTEES
The Trustees (who are also directors of Rambert School of Ballet and Contemporary Dance Trust for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practices).
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for the year.
In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Statement of Recommended Practice (Accounting and Reporting by Charities) (Charities SORP FRS 102);
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make judgements and estimates that are reasonable and prudent;
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Each of the Trustees confirms that:
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so far as the Trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and
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the Trustee has taken all steps that he or she ought to have taken as a Trustee in order to make himself or herself aware of any relevant information and to establish that the charitable company’s auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
Approved by the Board on 28 November 2023 and signed on their behalf by:
Trustee
Richard Butler Adams
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST
Opinion
We have audited the financial statements of Rambert School of Ballet and Contemporary Dance Trust (the ‘charitable company’) for the year ended 31 July 2023 which comprise the statement of financial activities, the balance sheet, statement of cashflows 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:
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give a true and fair view of the state of the charitable company’s affairs as at 31 July 2023 and of its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 charitable company 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 charitable company’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 other information comprises the information included in the statutory accounts, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the statutory accounts. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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 course of 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.
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the trustees’ report, which is also the directors’ report for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the trustees’ report, which is also the directors’ report for the purposes of company law, has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit:
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the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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:
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the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
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we identified the laws and regulations applicable to the Trust through discussions with management, and from our knowledge and experience of the sector;
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we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Trust, Companies Act 2006, Charities SORP and loan covenant compliance;
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
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identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
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considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
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performed analytical procedures to identify any unusual or unexpected relationships;
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tested journal entries to identify unusual transactions; and
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assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias;
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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agreeing financial statement disclosures to underlying supporting documentation;
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reading the minutes of Trustee meetings;
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enquiring as to actual and potential litigation and claims; and
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reviewing any available correspondence with HMRC and the company’s legal advisors (although none was noted as being received by the Trust).
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available 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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Catherine Biscoe (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL
Date: 30 November 2023
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2023
| INCOME AND EXPENDITURE Notes INCOME FROM Charitable activities 2 Interest receivable Grant from the Linbury Trust 8 Total income EXPENDITURE ON Charitable activities 3 Total expenditure Net income for the year Unrestricted funds brought forward at 1 August 2022 Unrestricted funds carried forward at 31 July 2023 |
2023 £ 330,000 161 1,500,000 1,830,161 (119,257) (119,257) 1,710,905 5,181,707 6,892,612 |
2022 £ 330,000 - - 330,000 (129,842) (129,842) 200,158 4,981,549 5,181,707 |
|---|---|---|
The Trust has no recognised gains or losses other than the results for the year as set out above. All of the activities of the Trust are classed as continuing. All funds are unrestricted.
The notes numbered 1 to 13 on pages 13 to 19 form an integral part of these financial statements.
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
Company no 5644697
BALANCE SHEET AS AT 31 JULY 2023
| 2023 | 2022 | ||
|---|---|---|---|
| £ | £ | ||
| Notes | |||
| Fixed assets | |||
| Tangible assets | 6 | 7,569,000 | 7,569,000 |
| Current assets | |||
| Cash at bank and in hand | 75,301 | 74,967 | |
| Creditors: amounts falling due within one year | 7 | (278,247) | (268,281) |
| Net current liabilities | (202,946) | (193,314) | |
| Total assets less current liabilities | 7,366,054 | 7,375,686 | |
| Creditors: amounts falling due after more than one year | 8 | (473,442) | (2,193,979) |
| NET ASSETS | 6,892,612 | 5,181,707 | |
| THE FUNDS OF THE CHARITY | |||
| Unrestricted | 6,892,612 | 5,181,707 |
The notes numbered 1 to 13 on pages 13 to 19 form an integral part of these financial statements.
These financial statements have been prepared in accordance with the special provisions in Part 15 of the Companies Act 2006 relating to small companies.
The financial statements were approved and authorised for issue by the Trustees of Rambert School of Ballet and Contemporary Dance Trust, company number 5644697 (England and Wales), on 28 November 2023 and signed on their behalf by:
Trustee
Richard Butler Adams
Trustee Nigel Reid
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 JULY 2023
| Notes Net cash provided by (used in) operating activities 10 Net cash flows from investing activities 11 Change in cash and cash equivalents in the year |
2023 £ 173 161 334 |
2022 £ (2,050) - |
|---|---|---|
| (2,050) |
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET CASH FUNDS
| Increase / (decrease) in cash in the year Net cash funds at 1 August 2022 Net cash funds at 31 July 2023 |
2023 £ 334 74,967 75,301 |
2022 £ (2,050) 77,017 |
|---|---|---|
| 74,967 |
The notes numbered 1 to 13 on pages 13 to 19 form an integral part of these financial statements.
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
NOTES TO THE FINANCIAL STATEMENTS
1 Accounting policies
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.
Basis of preparation
These financial statements have been prepared for the year to 31 July 2023 with comparative figures given for the year to 31 July 2022. They have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102) issued October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements are presented in sterling and are rounded to the nearest pound.
Critical accounting estimates and areas of judgement
Preparation of the financial statements requires the Trustees to make significant judgements and estimates.
The items in the financial statements where these judgements and estimates have been made include the estimation of the useful economic life and residual value of tangible fixed assets and the judgement that no depreciation of these assets is required.
Assessment of going concern
The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.
Despite the net current liabilities at the year end, the Trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the financial statements are detailed above. With regard to the next accounting period, the year ending 31 July 2024, the most significant areas that affect the carrying value of the assets held by the charity are ongoing receipt of rental income and the maintenance of the Trust’s buildings.
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
NOTES TO THE FINANCIAL STATEMENTS – continued
Income
Income from rent is recognised on a receivable basis in line with the lease agreement.
Expenditure recognition
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Trust to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure includes any attributable VAT which cannot be recovered.
Governance costs
Governance costs include the costs associated with meeting the constitutional and statutory requirements of the Trust and include the audit fees and costs linked to the strategic management of the Trust.
Fixed Assets
Assets purchased or donated with a cost or value exceeding £1,000 are capitalised. Fixed assets are capitalised at cost.
The freehold properties were revalued as at 1 August 2014 and these valuations were used as deemed cost on transition to FRS 102.
The carrying values of these revalued assets are reviewed annually for impairment and no provision for any impairment was required at 31 July 2023, nor at 31 July 2022.
No depreciation is provided on the Trust’s freehold properties as it is considered that there is no material difference between the residual value of the freehold properties and their carrying value. The economic life of the freehold properties is, in the Trustees’ opinion, significantly greater than fifty years. It is therefore considered that any charge to depreciation on freehold properties would be immaterial in the context of these financial statements.
Debtors
Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.
Cash at bank and in hand
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
NOTES TO THE FINANCIAL STATEMENTS – continued
Creditors and provisions
Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
NOTES TO THE FINANCIAL STATEMENTS – continued
| 2 Income from charitable activities Rent 3 Expenditure on charitable activities Bank loan interest Other bank interest and charges Governance costs (note 4) Grant paid to Rambert School 4 Governance costs Audit fees Trustee insurance Other costs |
2023 £ 330,000 2023 £ 40,963 81 3,213 75,000 119,257 2023 £ 2,400 800 13 3,213 |
2022 £ 330,000 2022 £ 51,273 43 3,526 75,000 |
|---|---|---|
| 129,842 |
||
| 2022 £ 2,400 1,113 13 3,526 |
5 Remuneration and expenses
No Trustee received any remuneration or any expenses from the Trust during the year ( 2022: £nil ).
The Trust has no employees.
The aggregate remuneration paid to key management personnel was £nil ( 2022: £nil ).
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
NOTES TO THE FINANCIAL STATEMENTS – continued
6 Tangible fixed assets
| Valuation At 1 August 2022 and 31 July 2023 Depreciation At 1 August 2022 and 31 July 2023 Net book value At 1 August 2022 and 31 July 2023 |
Freehold land and buildings £ 7,569,000 - 7,569,000 |
|---|---|
The freehold land and buildings were revalued on transition to FRS 102 on 1 August 2014. As a specialist property, a depreciated replacement cost valuation methodology was utilised to determine the fair value of the buildings as at the transition date. This was based on an insurance valuation prepared by Rider Levett Bucknall UK Limited, Quantity Surveyors and is utilised as the deemed cost.
In accordance with the accounting policy set out in note 1 no depreciation is provided.
The buildings are insured at a reinstatement value based on an insurance valuation prepared in November 2022 by Rider Levett Bucknall UK Limited. The School arranges and pays for insurance cover for the buildings.
The Lease between (i) the Trust, as owner of the School’s buildings, and (ii) the School, as tenant, runs for 25 years from 8 May 2006, with rent reviews every 5 years. In May 2021 the Trustees of the Trust informed the School that the rent would remain at £330,000 until the next rent review due in May 2026.
With the Trust’s agreement, the School undertakes building works from time to time. Under the terms of a formal licence dated 3 March 2020 the School is not compensated for the cost of any alterations, nor for any increase in value of the property attributable to the alterations; on any rent review the alterations are to be disregarded. During the year building works were completed on an extension to the Weston Studio.
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
NOTES TO THE FINANCIAL STATEMENTS – continued
7 Creditors: amounts falling due within one year
| Rent received in advance Allica Bank Limited (capital element of loan repayments due up to 31 July 2024) Bank interest accrued Other creditors and accruals Creditors: amounts falling due after more than one year Rambert School of Ballet and Contemporary Dance (see note 12) The Linbury Trust (see note 12) Allica Bank Limited (see note 9) |
2023 £ 53,350 219,437 2,960 2,500 278,247 2023 £ - - 473,442 473,442 |
2022 £ 53,350 208,541 3,890 2,500 268,281 2022 £ 1,126 1,500,000 692,853 2,193,979 |
|
|---|---|---|---|
8 Creditors: amounts falling due after more than one year
On 22 June 2023, the Linbury Trust informed the Trust that it had waived the Linbury Loan of £1,500,000, thereby benefiting the Trust by this amount. This non-cash benefit has been recognised as income in the Statement of Financial Activities, in accordance with the Charities SORP FRS 102.
9 Loan terms
The borrowings from Allica Bank Limited (previously held by Allied Irish Bank), as summarised below, are secured by a fixed and floating charge over the assets of the Trust:
| Amount falling due within one year (note 7) Amount falling due after more than one year (note 8) The amount due after more than one year is repayable: Within 2-5 years After 5 years |
2023 £ 219,437 473,442 692,879 473,442 - 473,442 |
2022 £ 208,541 692,853 901,394 692,853 - 692,853 |
|---|---|---|
During the financial year ended 31 July 2022, Allied Irish Bank transferred its loan with the Trust to Allica Bank Limited. These borrowings from Allica Bank are by way of an amortising loan repayable by fixed quarterly amounts of just under £62,602 (capital and interest), the last of which falls due on 31 May 2026. As shown above, the outstanding capital sum was £692,879 at 31 July 2023.
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
NOTES TO THE FINANCIAL STATEMENTS – continued
10 Net cash provided by operating activities Net movement in funds Increase in creditors due within one year Decrease in creditors due in more than one year Interest income Net cash inflow (outflow) from operating activities 11 Net cash flow used in investing activities Interest received |
2023 £ 1,710,905 9,966 (1,720,537) (161) 173 2023 £ 161 161 |
2022 £ 200,158 9,407 (211,615) - |
|---|---|---|
| (2,050) | ||
| 2022 £ - |
||
| - |
12 Related party transactions
Susan Cambridge is a Trustee of the School, which is considered to be a connected charity of the Trust. During the year the Trust received rent of £330,000 ( 2022: £330,000 ) from the School. At 31 July 2023, the Trust owed £nil to the School ( 2022: £1,126 ) for expenses incurred on its behalf. The Trust made a grant to the School of £75,000 ( 2022: £75,000 ) in June 2023.
Richard Butler Adams is a Trustee of the Linbury Trust. In June 2023, the Linbury Trust waived its loan of £1,500,000. At 31 July 2023, the amount owing to the Linbury Trust was therefore £nil ( 2022: £1,500,000 ).
13 Company limited by guarantee
The Trust is a company limited by guarantee and does not have a share capital.
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
The following page does not form part of the statutory financial statements which are the subject of the independent auditor’s report on pages 6 to 10.
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RAMBERT SCHOOL OF BALLET AND CONTEMPORARY DANCE TRUST Financial Statements for the year ended 31 July 2023
CALCULATIONS RELATING TO AIB COVENANTS
| These calculations have regard to the Covenants/Undertaking section of the AIB Facility Letter of 8 January 2009, as amended by the Variation Letter dated 15 February 2010 and updated October 2022: Adjusted Net Incoming Resources "Net incoming resources before transfers and interest paid as per the Borrower's income and expenditure account" Net incoming resources for the year per accounts adjust for: Bank interest paid Grant paid to Rambert School (transfer) Adjusted net incoming resources [A] Total Debt Service Costs "The aggregate amount of interest, commission and other recurring financial expenses attributable to all loans and finance leases/hire purchase charged, accrued or capitalised ……and net repayments due on borrowings incurred by the Borrower…..during that period." Bank interest paid Net capital repayments made on borrowings Total Debt Service Costs [B] Ratio [Threshold of 1.1:1] [A:B] |
Year to 31.7.23 £ 1,710,905 41,893 75,000 1,827,798 41,893 208,515 250,408 7.30 :1 COMPLIANT |
|---|---|
- Bank interest paid figures shown here are the sum of the four quarterly payments in the relevant year.
The bank interest figures shown as expenditure in the accounts are £930 less due to an adjustment for the difference between the accruals for interest payable (for the month of July) at the beginning and end of the financial year.
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