2022-08-31-accounts

THE ROYAL ACADEMY OF ARTS

(A Company Limited by Guarantee)

Registered Charity No. 1125383 Registered Company No. 06298947

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 AUGUST 2022

The Royal A¢ademy ol Arts Trustees. Report For the year ended 31 Au8ust 2022 tqr•d Owlty 1125383 R415tsred Cryany P. iW98947 Inthèfm￿aI amd date ofS￿l￿g.. Presbdent ￿eb￿ca Salter PRA Coundl &r David Adj•￿ OBE l¥pp(xntd 5 O¢t¢thr 2021: resig￿￿ 7 Jw)e 20221 His Honour Jud¥eT￿Y 8aumgartner Helen 8oaden PTofSonia BOY￿ 08E ￿ lapwnted 5 ottober 20211 Stephen Chambers RA Ire518￿d 4 Ortober 20221 n Chdst¢pher RA Ireslgned 5 Cktober 20211 Richard De4con CBE RA lappthmttd 5 Ottober 20211 Friend Prdrs Gough CBE FiA Irestgned 51knoter 20211 Prof Lubaina Himid CBE RA Gary Hur￿ Loulsa Hutton OBE IIA ¢ap￿inted Soctoter 2021. reywl 4 Cktobv 20221 Vane5saJack5on RA (res¥r￿d 5 IXobpT 2021 Sir15aac Ivlien KBE RA lappointed 5 Ortober 2021.. reSw￿d 4 Otiobw 20221 Jock McFithfen RA Iresigned 4 October 20221 Nlall McLau8hln MBE RA (resi￿ 5 October 20211 Humphrey Otean RA ITesi8ned 50ct(thr20211 Grayson Perry C8E RA FKJna Rae (re￿￿ned 5 October 20211 Eva Rothsthild PA Ire￿￿ed 4 October 20221 Ernrna Sbbbon (appointed Soctober 20211 Prof Peter Sijohn (Adarn Carvso Peter St Jth RAI Ire5yed IriTh CwrKil 5 20211 Prof Alison Wildin8 08E PA lapwnted 5 October 20211 Bob and Roberta Sfflith RA lapp(nted 4 cthber 20221 Eric Parry RA lappointed 40ctober 20221 Cornella PatherCBE HA lappoinied 4 Ollcer 2022 Thornas HeathefwKk COE ￿ (appointed 4 October 20221 iwi5e Wlson ljane and Loyi5e Wi150n KAI lapwnted 4 Ckl¢kn 20221 John Ak¢Jmfrah CBE RA lappointed 4 tknber 20221 Rebecca Salter PRA Prolessor Cathie Pilkin0￿ Prol Peter St John (Adam Cantso Petsrstjckn KAI Axel Ruger PresKlert Treagjrer Comp•nySety¢t•ry eenedict Ar￿ttY fjeneral C￿nsel SehlorLeadershlpTeam Charlotte Appleyard Iza Bonham Carter Carl Hitckock Rebecta Lyon5 Natasha Mitchel Jo Prosser Andrt¥ Tirsi Dire£torof Devekyjment & Btsshss ￿r￿{￿lOn Curatorand Thrertor, khods (h"rertor of Finar Director of CollettKJn5 & learni 'TÈrtor OF Corporate SeThices Oirertor of AwlierKe & Experien rettor of Exhibitv)ns Pale= I

The Royal £ademy of Arts Tru#ees' Report For the year ended 31 2022 Royal AcademyC¢>mmlttw5 at the date ol ". Flnanee and Perf￿Man￿ C(wnrnittee rre35urw exofficio (Chairl Pesh Fram ee &rnon Ffiend Maria Lisogorskaya. A55emble ￿ E Andrea IYKeefte Paul Venables Bill Woodrcm RA Slephen Chamters RA (Chairl Profe5soTJosekthine Oan AdesC8E F8A Jthn AkomhahceE PA m￿ne Desmet RA Professorchantsl Joffe Hew RA Elect DoTothy Price BeTh Ththnas PreydeTrt tx o Treasurerex D KeeFer ex o 00 Secret and Chief ExecutNe Secrettsry to the CLwMTrittee.'Andreo Turyo (Dirertorol cio Secretory to the Commitiee."CwlHtchcork I￿reCt￿OI Finonrej Audlt and Rlsk CryMilrt¢e &mon Friend Chair John Cdlier encer de Gr Anne DesmetRA Hurnby Secretory to thec9mm￿ee..CodHit￿Co(fr (Dlfertwol FiyttJnceJ Hden Boaden lthalrl Ker￿]￿ M f ric Pa RA 11 WoD¢kow RA Seuet¢wylo theCommittee.'NottsshoMtchelllDlrector oICLWf¢tteSer¥tcesl RA S¢h¢ols Commthe Gary Hume RA Chair Keeper 5Ècreta aTrJ Chief Emecutfve Secrerory to the Committee.. Eli¥0 8ryTlvn Ct7rter Icurotorttnd Director. R4 Schwls) Richard ￿rW Mary Stephen51 Adham Faram profes￿0￿11 A¢lkn: Au<ltors'. Moore KIng5t￿ Smrth LLP. 61h Fk. 9 A¥pold Stree¢ Loth. EC2A ZAP Bankets: Uoyds Bank Pl4 41b Hoor, 25 Gretham Street. LaTrkn. EC2R 8LA In¥esiment m￿al Sarasin & Partners LLP.Juxon m￿j$e. ILXI St PaUfsO￿￿h¥aTd. Londm. EC4M 8BU Sdldtors: Macfarfane5 LLP. 20 CuTSitor StreeL London. EC4A ILT Wtthers LLP, 16 Old Bailey. LMd(xb. EC4M 7EG Relistwed oth￿: 8urlin8ton House. PkCadlI￿, London. Wll OBD Other committses of Cwnol not detslled hwe rt: Annual D•w*r CL¥nmittee ¥Yl Sumrner ExhI&tTr￿ Committee. Architerture Cornmittee. 8u51d1n8sCL¥7Nn￿ee." cdlecty.ons and Litirary tsnmittee.. LeaminRCommittee were¢eAnmittÈe$ f Council until 31 August 2022. Pa8e'. 2

The Royal Academy of Arts Tntstees. Report For the yeav ended 31 Au8usi 2022 CONSTITUTIOII ANDCHARITA•L£ OWECTIVES Constitijtlon The Royal Ar•dÉmy olkn loyal Academf or"IiA- ty-kaderfl vRslnccryrated as a company Iwnited by8uarantee on 2￿lY 2007, company re8i5tratw Th￿berc￿l989I7. •ndrtiistÈred as a (hityon GI￿6u$t 2C¥)8. chtyre815traticffj rwjmber 1125383. irtthwated Royal Lademy comm￿Ced tradint on I Septernber 2(YYJ Ic41￿7n& the tran5ter of the r￿t assets and undertaknng5from the uninuryrated Royal At3dÈmy. Ltsrityre8istratK)n rrtthiber 212798. The Royal Academy teday continues to aswre. in ￿ word5 of its 18 century Iwnder5, 10 "wtsnote the arts of desiw". btlieves in leaftMn8 throu¢h first-hand expernce of the arts is un•we in trts cJ)mbinat￿ of pracbral exhlbitlons. ar￿ learni￿ pr¢)8rammes. Royal Academtcian5 are painter% sculptor5. arthitec15, ewa¥er5, printrnaker5. and drauthters t￿tted by thelr peers for the distinrtion as artists. There are up to IQO arti¥e Ac•JemKuins lunder the age of 751 form the GeneTal A55embly and a number of Seniry ACadem￿lIn$ loverthe a8e of 751. Roya Academioans and SeniL¥Acadernluans constr(ute the rnembership of the RA45 a cornpany and chority. The Royal Acadthny receives no direa revenue suppytfvom the8tyrnnrnentw anyothEt pybli¢ b(¥dy. The Royal Academ(5 charitable ￿jeCts are.. The prcffiotion of thE art5 ofde5W. The edlKOt￿ of public in tt ¢rtatw 4oymert ¥pretlati￿. and uTh1evst￿dlThQ of the arts, throuRh exh1trlv.c￿$. educational prOgramn￿& aThJ debate by all d¥fItsb￿ Ir￿545 tt membwsof Ctyjrtll may thlnklfji. Countsl The Rayal A(adny i%8o¥erned by lis Board of threctorsor trnstees. are referred to as the COU￿11 of the Royal Academy. Counul con515ts of thirttehAtademIt￿fi$. up tothree iThJMduals are not•￿￿eMIC••n5. and the Pre&dent. Six seatsin Council8oby rotstionlyJ((essiMtoalltheAcademioans.These indNkn1$5erveonCwrKil fortwoyejrs and may be rt-dected f￿t￿O furthertefms ol tY) years. Three seats inCou￿1 80 tomew￿e￿fedACadernkins. These ￿￿￿￿al5 Se￿0￿ Cr￿. for0￿year1nd may be reletted for two furt￿[ terms of two years. Four seats in Counol a￿ eknted by the GeneralAssembty all 5eMryAcdemiti•n ThÉ￿ serve Countsl fortwoyears and may be rtrelected Ic¢ M further iermsof rwoyear5. Up w three "extemaf Imfvkademicianl members of Counc4 are chosen and recOmme￿Ie1 by CowKil and aFvroved by the Ge￿[al Assem￿y. These Ind￿ld￿a￿ Serve on Countil fortwo years and may be re.elected for two further terms of1￿ ThePresidentistheChalrof CoJncS1. The Preydeniha5rn¥0te atcourol ￿lesS1he¥Ote5 are equal. invthirhca5e the PTe5iderbt 5 the casting vrte. The Keeper, Treasurer and th Sotretsry and Chf Executwe atteThJ CoutKiI but are not members of co1￿￿1. Council normalty meets at leam SL¥ tlmes a￿. Gen¢r•l Awmbty Royal Academician5 riet ¢dletb¥ety ih General IsseTrth. There e at bea# Ge￿rnI Assemblies a￿Tr￿lI¥. A￿d￿(￿al General ASSeM￿les1r￿ be in aC£{¥thrKeT￿th the L•$. The respon%b4ities of Ge￿ra1 Assembly incI￿le.. Ele£tkn of the three £ademici•n OffKers.' The Pre5KlenL Keeper. Jnd Treasurer and ¥woval of the apwintment oltho Seuetary aThJ Chief EAecuti¥e. Approval of chan8eS inthe Las. E￿rtk)n oft%￿ JtsdeNMtians to eath y. Appr￿11 ofcertain appointsnents ffladE bycwnal. I￿￿dir8eXt￿rnll members ofCouNil. Electh)n of AcademKiaTr rnembvs olthe Audit and RiskC¢)mmittee. Approval of the ¥ptxntmeTrt ol outhtors and rÉtel￿nI a report ttr la￿￿81 Rwt and c￿S0&"dated Flnancial St￿ements each ¥ear. Elertion ol fvolessLYShips other I*￿Iary CornideratK)n of mattets relatiw to members. affafjr Paee.. 3

The Royal A¢ademy of Arts Trustee< Report Forthe year ended 31 Au8ust 2022 oiricers The Officers ofthe ftoyal Academy are the Presidrt thE Keeper. the Tteasurer. and the Secretsry aTrJ Chief ExecytNt. The PresMlent-. Act5 a5 the formal represeThtath of the RA tott wtsKle workl. Choirs Gener31 Asem￿y, Counol and Committees of Cwnol there •pprowatÈ. Works closdy the 5ttrÈtary aThJ Chief Executiwe to ensure that all a5pert5 of the Stewardsh￿ of the RA as determired by CourKil are ewuled through the Se£tetary arKI Chief Execut¢we by the Senior Leadership Team and Staff. The Keeper.. Acts as the form41 representstib of the RA Schrds io the outside wkl, Gener41 A%sembtyf and Countsl. Works to ensyie that the Stewardship and aodemic perfwmance of the RA Schods ate vnaintained to the apprcyriate standafds. Reprtsents the xademicians deiwwith ￿ RA SdKx)ls. The Treasurer- Acts as the formal representakn ofthe on all mattersconcerniryfirL4nce. Chairs the FSnarKeaTrd Perforrn￿ Cornmitteeand rtptsrtstoC0u￿il0Ththe Financeand PerformJnceCttmnwttÈe's Ensures that Cwncd IthrrJth the FinarKe and Perf￿￿ C¢vnmilteel provided wlth budgets a￿1 reports for al exhitstions. Tho secretary aThl Chief Executr¥e'. Atts in the a£￿pted and ￿￿TallY rik of 5etreiary and Owef Executfve. both wthkn thp PA ats externally. 15 re5pon5ible forthp stratew, cultural. and bu￿ne$S aspects olthe organi5JtK)n ar￿ administration. Adwses the President and C￿nCil proposed stratWe$￿ thaftges in stratezyto reaf15e C(MJntifs ￿JeCtIVe 5enlor Leadershlp Team The Senror Leadership Team I.￿ri comprises Seven senw rrdErnber5 of stsff Idirectorsl and Is by the Serretsry •nd thief Executwe. SIT is r¢spMsible for imP￿n11n8 pc4¢aes and stratffje54ppr(y4ed byCourKiI. The Finance and Performance Committee IfcTherly the finarKe C 31 Au8U5t 20221 15 responsknle to Council for overseeingand sCrU￿1$InCIhe financial ￿tegritya￿d perf0m1a￿e of the RO¥￿ Academy. The Committet'sspÈtificduties sp the followin8aTeas.. flnandal ￿3Th￿iD& mwageffent. and contro15' irNe5tmerIts..fina￿￿ maior proiectsand e5tales 51rate8V.' cornmeicial and audience £trats8ies.' remuneratfjon and per￿lL￿. and oryani54tional perforvnancE. The Commthe usual meets at least lojr times a year. The Exhibitions and DI$￿ayS Committee Iformerty the E￿"brt￿(C￿￿M1ttee to 31 Au8u# 20221 ts resPrn5fjble tocouncil fvr overseein6 the proyammin8 aThl devdopmentof the RA'S￿1￿111es in its exhibi￿n5 and displays. Thecommittee re¥lews the RA'S exhibitrons strate8yand satisfies itseltthatthe PY￿￿Mrnes havt artithc and edtscationèl Cohe￿rKe ond rellectthÈ aims, asF4ratv)ns, and clwrbtabk objtds ofthe The Commitree Usual￿ meets at fwrtimes 3 year. The Audlt and ￿sk Ccffjmhtee ItwmerlyttAudit Committee to 31 Au8llSt 20221 is resprn54>leto both GeneTal As5emblyand c￿nCil. The Cornrnittee prtrrfides assurance that there is Jn efferti￿ fvarnÈM)rk th place lor rfsk management and intemal controls a55urance. intludini internal e￿ernal audit_ The Commfftee also ovef5ee5the preparalon and re¥w olthe RA'5 Annual Report and Consolidated Fwval stsleMer￿. Committee usually meets at kast three tyrnes a ￿ar. The People and Remuneration Committee Ikrfmwlythe Remuneratic￿ Cornrnitteeto 31 Au8utt 20221 Is responsknie to Council foroverseeirethe broad remuneration poty of the PA lindudine pen￿on$ and reduTrJanryl and specrficaltythe remuneratloTr otthe Secretary and Chief Executi¥e. SLTand the stipends of off￿$. The C(nmittee i% further resPCffj5ible to Council lor considerin8 and rnaknng recornmendations on STr￿1￿3￿t polKs arnj matter5 relating to R4 ttaff and overarthln8 peop strate8ylpriNitie& The Ccffjnmttee usualty meets at Ita￿ threetimes a ￿ar. The RA Schools Ctynm￿ee is respons￿le to cour￿11 o¥er5eein8 the care. man¥ement and de¥ekJpment of Sch(xJls and their student5. The Committee u5uallymeets at kast three times a ￿Or. Page.. 4

The Royal Academy of Arts Trustees. Report For the year ended 31 August 2022 T¢•dlngsubsfjdlwles The Royal Academy has ihree vAK4tytr•med tradiry subsid44des". ETrterprises limited (company no. 16663331, 8urhngton H￿se tsmited Icompany Th). 22161041. aThJ RA IArtsl LbmiiÈd Itompany no. 28363641. Althcxjgh these are separate leRal entities. they are rewded a5 w of the RoyalJ£ademygrcAy are in the c¢)nsolidated finantial statement& Cwnetied thibes The Royal Acadeniy TrusL Set up in 1981 to prtr4KlÈ fuThlskn tho supwt of the Royal Ac•Jemy. is Separate￿ rezisiered a5 a charlty Its own trustees Icharity Th). 10672701. As it is ¢¢Mttr¢W by the Rtyal kademy. its r￿￿ree$ have not been or550Jidated with ilK)se of the Wal Academy. The Friends ol the R￿41 Academy. a stparate dwity with its trustres. was worF4Xated as a company limited by 8uarantee In DeCem￿r 1976 to supprrt the Of￿ Royal Ac3deffty lthawity M. 272926. compar)v no. 12915351. As wth the Royal Academy TIUSL it is noi C£￿1￿Cl￿d bythe Royal Ac•Yemyand rt5 rex•urces have bEerbcon501Kl4tedwith those ol the Royal Ac•demv. Trustees. dutleslD rdatlon t0srfl￿ 172 of¢h¢CthyiÈs Att Xl Members of Councd. a5 director5 of Royal Acadeffly. rnu5t 3tt in acctydance a set of 8eneral duties as detaled in Secbon 171 olthe Ctrnpanies AU 2(#)6. thith indudes a dutytoprrynotetlE 5yrce55 oltheorlanisation. ahd ihdoingso have reyrd Iwnong5t othÈr matttrsl to.. like￿ £L￿seqUenCeS ofany kjy.tem dec￿. The interests of the cwnisotion"5 employee5. ThE need to f05terthÈ or8aThsatiM's bu&ness retstlrmsfvps with Sup￿er$. custwners. and others. The Impact of ihe orEanisatiorb'S Operati￿On the cornmunity and ￿n￿￿ynrneTht. The desifability of the or8anisation to man￿￿ a repUlatic￿ for W 5tsndards of I￿ynesS condud. This report 5urnm•ses abfft W Academrfs framewTh The Rryal AcadernTrKs ¥a￿e5 and bthwiour5 and how It has enlaied ¥Mth stakeh¢)bdet5 throuElwt the yeaf are com￿dered fvrther In this repcrt. CourKS1 has consldered the views and needs of key siakehoklers in Couwl diKv55irns and deci￿on makir¥. The followiTrB aTe not intended to be an exhaustNe list but art illustrativeof ￿)￿coU￿1 has fulfilled its througkwt the vw. New Countil members rece￿ a cwtyYehen￿ lfvJucti￿ al￿ tr￿1￿ ir￿dI4 a detailed indu¢iion p•¢V ol documents. vjhich irKludes'. 6￿dance on tru%tee5' rokn5 and dutie A speclffic C￿e ofC{w￿(t rnerntrrn. A ccyv of the Royal ACodern￿5 consbtutsoml dotuments Imenwandum and kncles of A$S￿latIOn and PA Law51, tcwhef V4fth the Admirthstyati% Instructi￿. whKh de5uibe JMIn￿#t￿e Strutkyre ofthe Rtyal A(ademy and pr0vldeguidan￿ as to its piocesses of manayment and administration. nuol report5 and fwmtsal manaeefft￿ rep￿ts. min￿e5 of ￿￿e¥￿S meetir Rele¥ant AA pc4ioe5 and procedures. They also have an inductm Sess￿ before the first Ilx-toberl C¢wncil meetir¥ of the firkwKial year. condutted by the RA'S PresidenL General C¢)unsel. Secretary CW Éxeojtrve. tl"rector of FiTrarKe and threctN of CrypNate Ser¥ices. vthirh indude5 keyinfOrrnat￿n on OT8afusaknon fina￿e$ and stre8y. Ihe is$￿5 requirlns cou￿1 cwideration. and an e¥plarwtw>n of Coundl roles and responssilities. The ktfetary and Ch￿f Exe(ub¥e. teyther Tmth the ￿T. hwe deleAated auttkn)nty for the vunfiiw of tht Rty•l Acaderny, and are acwyntable to CL￿￿11 for this. At eath meetin& Councd recei¥s reports from the PresKlent and Secretary and Chief Executive. asse5yn8 organisation impacl.firkinckil performance al￿ updaknngon key operatthal issues. Countil. comm￿ees. aThJ the SLTkeep prirwl cryar•saticMwl risk5 underre¥Ew. For furtherdetails on cmjr rt5k management frarnework 4nd wkn(ipal risks and ￿￿ertaInlieS Wease referto Page 24. P•8e'. S

The Royal kademy ot Arts Tnthe￿ Report For the year ended 31 AW 2022 St•k¢hdderenp8erM Stoff ondvolunteers The Poyal Acadefflws Staff. tO8ther wtth its (asuals and vdvnteers are ttntral to its ability to deliver its charitable mis￿¢0. ThÈ Royal Academy has a dear Set of value5 linkEd to its mission and is commrtted to being ly)th an inclusive, diverse. and flexible employer. The Royal Academy wcrts to ensure that no di5athfantage or prejUd￿e is shcA¥n orb accovrlt of race, aBe. 8ender. disabilrty, or any othtr protetted characteristics. Further inl(KmatKffi on gender pay and reporting, diversity and I￿lusi￿ and disability and wellbein8 is pro¥ided in other sedths of this report. The Royal ACal￿V will continue its work on and racial equity across all aspeus ol RA and 15 rnindhjl ol the ways that it can rebuild its proyammes the organisatlon to make everyvisttorfvel welcome. and ￿ tyeate a rn￿e equitsble workpiate and plao of studv. Bu￿￿e$Sre1ut1on5￿$ps with swliers th>dother5 The dellveryof the Roy31 Academ¥s rharitable a1rn5 al￿ ￿leCtr¥t$ isdependeDt ona Ta￿e of relatK)nships with suppliws and otherbusifièss partnefs. Council has wcouraied theYT and wider managementtodevelty)and maintain trusted partnwshÉps th both and expectsthe R(ry￿ Acadtmy'spartnerstobe aligned itsvalues. The Royal Acadtmyseekstoact with honesty and integrity in all it does to ddiver best v•lue f¢w rnoney in our MI￿0￿ io-th toaether to pr(xnote the art5 01 desi8n.' and edurate the Publ￿ in ueation. enJO￿nt understandiry of the art5 thmu8h ÈxhibTDon. education and debate.. Partneror8ani5atH)ns are expecttdto c¢)mplyith the reouirementsdany profe$5ianal standards.ortrade brJie¥ dependi on their adivitle4 and all apwicable law5, 5tatute5, re8ulatiM4 and codes OF practKe reLat￿ to anti4)ribery and anti. rruptyort. The Roy41 Acaderny has a 1ertrto1era￿e aFproach to mrthrTh ￿￿very afid 5tri¥ts to art ethKally and wi(h Inteyity irs all its business dealing5 relationships to ensure that mc#km sla¥try doe5 Tr)t tske plxe in its 0T83nisa￿0n or ITh any of Its supply chains. The Royal Academywill contirwe toen5ufe thatthis apwoath Is dear to partrer organi5atK)ns. Further detsils ol the Rwal kaderfs polkiE5 n tdiion to its tMtsfjrss ￿lat￿Sh￿S ¥Mth cornpanie% suppliÈrs. tusiorners. and others. Includi￿ wpplr Terms and c(￿01110n5 are avaiL4ble on the Royal kademTrKswebsite and a statement on Modern Slavery can be found at.. royala￿eMy.o￿uk/nwdem.$la¥er￿and-hUM3r￿1r81￿rkinI-st￿terrIent 5ttsroinotslityondenwronrnentol IMp￿t The Royal Acaderny recognises that the climate ernEi8tw is a critical ssue ol our tirne Redvcing eFMronrnental impatt ofouractivitiEs is a key pl￿r￿fortheorla0¢SèI￿)Tr. We have a waytOBO, but aTe commstted tothe cause. and determined io play our part in protecting the planet. The estate s now ￿4)we￿d by ICIM rer￿xab￿ enET8Y and our spaces are almst exdusNely IrL by effic￿nI LED l¥htyn8. &rKe 2018 WE been committed to-iero landNf. We aTe in the final 5tage5 of attalThin8 8REEAM "Very Good- accredIlat￿ to certfy the wstairbability of ovr Gardens campuk The RA'5 exhibitions are increasin8ty Vrithan Lrye C￿ sustaina￿"1￿. Travellin8 cases fvw)Tks on loan are regularl¥ bein8 reused, as are the plinths and displaycases. whffe w)55ible. WÈ are also100k￿8to reduce wr carbw impact relation to the transportation of artwork5fore3ch eXhi￿"tH)n. As much as possible we are kx)kin8tot¢)ns(Athte shipments. In theyearahead. will be w￿kIn8 to de¥rlw a detailed roadmap to deli¥ring a net zero target ahead of the UK Go¥ÈmmenVs deadllne of 2050. Further knformatlon on Sustaina￿.1lty inibtThs can be found on pa8e l7. along wrth wr Streamlined EnerBy and Carbon Rept¥tin& ISEaii. Re5PDnSible investmenr The Royal Academy reco8nise5 impLvtsn¢e ol b•"rrf guided by strcrf¥ eth￿41 winciplts and ensurini that our valves are ernbÈdded in our plans and actKins. As part of these 8UKlifig pririples. the RA is committed to inve5tiry ts furvJ5 in a socially re5wnsiL4e bas. Injune 2021.CtyJncil apprcNed theRA'5 EthicallnvestmentPdyand in Octthr 2022 approved theupdatEd and renamed ResponNble Irwe5tment Pc4y 1.the PolKfl. Poliry h05 been devdopod with the intent￿n of active pr¢notion of In¥estment in ccffipanie5 and irNestmÈnt lunds demor¢strate Fdioe5 a￿1 pract￿e5 that are in line wth the RAvalue5 of SIT￿l￿th￿31 prirKiples. The Poliryaryl￿s to Ihe fvll %opÈ of the investments held bythe RA. The RA b￿lieveS that toaccord wth its values vJhen investin8 itsfunds. regard musi be made to Enwronmental. Sotol Go¥ernance I"ESG"I 155ue5. Tht Finance and PerformwKe (c￿mittee rn￿t￿5 thÈ opetation and the effecti¥ene55 of the PoliLy and promdes Counol with an amual update in October eachyew. The Royal Acaderny and rtstrustees take 8ocoJ are 4war¢ ol Charity G￿￿nance Code, indut¥ni its seven maln prindples. RoyalAcadem¥re8uladyr￿￿$ts80VeMar￿e$trUÉ1Urtafftd w0￿$Se$. Ind￿th￿rOmmI551or¥n￿efftrfia1r￿¥ieT￿ in 2016 and 2020. Thi5 has included assessment a8ainM the seven Pr1r0￿e5 of the Charity GovemaKe Code. Some imprtr4ements made asa result of these ￿e￿5 include.. Reviewed membershlps of comittees and ￿eT￿￿e bodiÈs dearand preclseterms ol reference. Pa8t'. 6

The Royal Academy of Arts Trustees, Report Forthe ye•r ended 31 Auiust 2022 lrnwoved Coundl iThJucth)Tr and trairyr. Chon8ed apPrOad￿St0 rnInUt￿takiffj recordu% manrrf cordlkls 0f￿terest Review of tdmmtttees The Royal Academy ha5 ufKlertaknn a mIew￿lts £c4nmittte stnjctsre. Tlw"sre4iew aimedto improve the elFerti¥eress ol the AA'S eo¥emance structure redure the rtsourtÈ demand the cwnisatlorn partiutskrty ￿￿￿definI the Strate￿ of achievi￿ sustainabilityand the receni oryanisatKwl rests￿re. The miew project cornmenced in Spviw 2021, artd iThm￿ed exten￿ with key stsehokJer5 Kross the RA. A clearcase for changewas jentif￿1. In janu￿ 2022. Campbell TKkell lext¢fftal 8ovemante thsorsl were appolnted towork lon8side the ivrternJl proiett steerrygrwp. Wth effect on I September 2022. a r• C￿mIttee 5trLthTÈ W3s impbÈmented with newrn)s ofreference. ThSs consSsts of "core-committees." l. FinancewJ Perform•Ke: 2. ExhibitI￿$and Dwloy5: 3. Audit and Risk. 4. Ptopltand Remu￿ratIOn. 5. RA Schoo15. A 5taAdard forrnatand ￿lda￿￿ forwribng tr)ard 3ThJ ccrninee papers wa5 intro(knred at the saffle tlme. for addi16￿al darity. Separately. provision hasbÈen rr￿del01theest3bI￿hment0f-A￿.50ryGr0Up$-. based onstsndard terrn50f referenre.outslde the formal 8o¥ernanTrstrurture. The5e8ri)up5wiIIMbYJrkflexibfytoÈxamine S￿￿¢theM3tiC topKs. xcessiTrE and thannellin8 the iNsi8ht and expertfjse of AcademiciansaThl other5. The fwJ5 will rK)w b on embeddin8 the new structure aThJ ensuring that orlanssational de050rFrn•king and govemance is nwoved as a resulL In partbculir. PA ¥AII c¢Jntwx to ensure its lovemance alip￿ the Principles of the Charty Jvemamce CodÈ. The Royal Academy Colleth"on5 areconsKlered a"OesiBnated ColWvJn- by Arts Countil En￿artd as a"pre-eminent collect of national or internatior￿1 Imptrt￿. tr￿d bya nonrf)atiwal institution.Tr Collertw is accreditedthrouBhthe Art5ftwfitil England Accreditat￿ Scherne. Colltrth)fi matteTs rektiiwtothe manaeement ofthe collectiw-its cafe. auditand risk. report annually to the Audit and ￿sk Committee,. work and schdaTshbp of the ColletLh)ns, Llbrary and Archlwe teams is reP￿ted annualNf to CourKil. wth ban requesis and xq¥i5ibons repcrted on J5 required (Usual￿ e¥Èry meetin￿. The Royal Acaderny ￿tamm[￿edto￿eeMlth￿1a￿d de¥elw"nga dNerse and irKlusi¥ewortfortratall levels. We wantty ensure that oppoitunities to WO￿ at thE RA aTe w to all. indudiftg disabkd peoplè. that disabled eMplo￿e5 leel valued and enabkd to carry LWJt their work and debp I￿"r careers The Royal Academy place5 valut on the Involveme￿ of Its emF4oyees and has continued to keep thern informed matters affertin8 them as enw1oYe￿ and orl the variou5 fartors affertiry the Perforn￿r￿e ol the Royal Aeademy. Th5515 athieved throuth Imnal and inftrfmal meetings, includw re￿￿T Staff Meetinz5 and on the Royal Acaderrry'5 intranet. In Jvty 2021. the RA annourKed the crtatK)n of tho Staff C(yJnol. Staff representati¥s ¥vere r￿Minated in August 2021 and the lst meetingwasheld in September 2021. rbew Staff Council metsutirnesatrosstheyeaTwithele£tedstaff representstives Irom atross the RA meeting th a rotatKin of members of the ￿TIO disoJ$5 a range of tQPS Tel¥in8to matters of concem to stsff. Note5 fr¢)m I￿se meetKwsre also shared rn￿e broadhfiih the widerstsff. Str¥k In autumn 2019, the Royal Academy began a Strate8￿ rewew of its oper￿lon$ and obpcD¥es. Afirst •SSe55fflent of the 5tatE of the RA was presented to Council in Februy 2020. This miew fdkhvÈd the prevh)us ffft-￿ar Strategic Plan 201>2018, Ith toveredihe fivé years leadini up to RA'$ 251#hanniver5ary-a perK¥l of substantial expansK)n. The reviewasserted that Sigmihcant chaw to the orgardsat￿l re l￿ded to place the RAon a rnort Sustainab￿ financial footini. It refleded the assessment olthe 5ecre14ryènd Chief Exetuti¥e and identrf*d the need to create a robtsst model for the future. Cob4d-19 p•7deffAc A5 these Cha￿e$ re knnK tahsidertd the siluion was exacethted ty the onset of the Cc4id.19 pandemK %thlch lorced the PA to tk)se its dc*Jrs to the in March 202 As reported Sn last yearf5 5trate8ic review. the pandemK a st¥ere on the K4.50peratK￿ thrwh the remairKlerof Ihe 2019120and for the entire 2020ni fvwrKbal ￿aT. Page.. 7

The Royal Academy of Arts Trnstees. Report Forthe year ended 31 August 2022 During the Ilr5thaWolthis financialyEar. the paThdem￿ coni¥•Jed to have a syificant impact. There was a gradual increase Wi￿tOr capacity fdlowine the f¢Tral ￿nmeNt Testrirti￿S bein8 lrfthd in le July 202L Ow Staff and visitor safety and confidencp Tefflalned Param￿nI. and we ¢￿tir￿ed to hwe varwjus safety Prot￿1$ In place. We 8radually increased Capacities. such that ty earlrnid Autumn 2021 * were no kffi8er capacity cmstrdinl due trj the panderric. 110￿er. thE emer8enceof the OmKrthi variantand the 8fftrnftni measutes putin placetocombatthi5. we expetienced a slgnificant fall in ￿51t9r5 at end of Autumn 2021 ￿ the 5tsrt of Winler 2021122. Many iromtr8eneraUni artiw1￿s. ￿dUd1ry an expanded public proyarnrne of eventsand le(tures. dwj Mt lesl￿ until ￿terin 2022. The m¢xe positive prognosi5 on the parbdÈmK. has been suFerseded by external global ififlyerbces with the outbreak of the Ru5514rbl Ukrair conflla in kte February 2022. t4ether With the I￿er-femi impart of the pandemic a5 well as Brexit. has contributed to the MaCrTreciH￿1C situatJo the Royal Acaderny now ftnds in w4ith prtssure on supply choins. riy inflatton and Inte￿5t rates" and an risk off a global r￿e$S￿)n. There rernain5 umertainty as we recover from the pandemic. The shcrt-term si8ns are pos¢tiYe fvoffl a ¥i5itor ¥ie%yint, albeit we are still attracting a signifi(antlyloweT number of visltors than before the paThlemK. The SummerExhftts"¢itwtr2022 which c105ed in late Augusi 2022 the fw5t exhibition to atNeve vlsStor number5 cornparable prÈ-pamdemic I￿e1$. The mre immediate con￿rn i5thÈ considerabk challenge to the c05t base wrth risin8 infiatlm and irKreased l•bryw. enttKy. transportatknn costs and the pr0¥beCtn￿ irnpart ol the -cost of Iwing cri51s" on visitar numbe 11 Is against this backdrop that thÈ 2022-27 Strategfjc been (veloped thi5 year. The final ver￿On of thi% pian wlll be formally adopted by Council latel in 2022. Thi5 111 effective￿ supersede the VISI￿ 2021-25 put in plate to drlve strateE direction duri￿the lasttry) years a5 an intein rnea5we ahtad ¢yf a pkn beiw adopted. Core RAand rostnJ(turirf In September 2020 the RA dlweloped a ¥1510Th Its proyarnrne tsf ttMty. a￿ler￿0 stra￿. and cost base to ensure rt5 survival over ihe five years to 2025. To en5urÈ the kn18-term finanoal su5tainobihty of thÈ RA a -core RA" orlani5at1c￿aI strutture was established, ained to deli%%f ￿8n[ficant tost sa￿r￿. T15 fcff[￿d the bay5 ol •n w8anlsatIc￿-Wlde restructu¥e at Start of thehna￿l01 year 2020121. so￿ 2021-25 The Royal Acadernyofrts isohÈ olthe c4destwtsorpwsèt￿s in the United FouThled In 1168 bya groupofarty5ts. it has remalned an artists, a55ooatiw led by its Mem￿1￿ Aoyal Audemicians. to the present day. As a Thcme for arL artists. and ar£hiteit5" the RA has a loundin8 rNssion to to prorTh)te the arts of desiKTh' and educatethe publ1¢ Sn creation, enjwrnent and understsThJingof the art5th0￿h exlubition. edutatwjn and debate". In order to face the financial challenges presented by the Cty4KI-19 pandem￿. the Vision 2021-25 fcojsed on ihe rore xtNity that supports these foundin8 principle5.' the mernbethp of Royal ACadem￿lanS. tr PA SchoD15. the exhlbrtth PTograrnme, the Collections. and the commitmentto learniry. To protect and yjstaln the core RA art141t￿5. in the Nnrrtdkite fubAe. the Vlslon 2021-25 setoutthe fdh)win8 prlnclples.. Focusw an essen￿al programme rhat seThe5 ifsaudrtes Contynue towÈltome and serve its aud￿r￿S Priorit15e c05t redudK)n for a fNe.>ar ￿)￿on Proactivety supwt equty and inchJswJn Continue to smprove the wstainabilrty ol rts hfftastruc￿fe Continue to in¥est a respongwe w•v. 2022.20275tr•teOt M This p13n has been developed In 2022. Thp final vetsioft of the plan will be shared C¢)unril later in 2021 for apwo¥al 4rJ 115upersede the Vi5ioTh 2021-25. apwo¥ed. it ￿11 be shared wth the Committees ofCourKil and trustee boards of The FI￿nd$of the Royal Academy•nd R(Yfdl AiademyTrustbefore beirqpuwished. A5tht5 has rw)tyetbeenformalty apprrNe oradopted, it is£onsidered lurther in the-Future PLins" settiofi olthi% reptrt Thls strate8lc plan ￿11 set w¢ the IiA's fw the nertfwe year5 * pThxle a deaT roadmap supported by a ctherent set of priorities de4ned to help the RA to realise it5 a￿￿tR)n. The bToad strateyc aims Lwtlined in this plan will bÈ underpinned by a series of operatK)nal plans whlch ￿line the detai15 of imprnentation 4rMI provide metrKs fcv evaluation. The Strate hos been de¥doped b¥ the Secretsry and (hiEf Executwe in (C￿$￿1tat￿￿ with Members of the knior Leadership Team. the SenK>r Mana8ernentTearn, theother Officersolfv ￿¢The Prednt.TreasureraThJ Keeperl. a$wdla5￿ Mernbers.CounclL and the trustees ol the Royal AcademyTrust. Pa6e'. 8

The Royal Academy of Arts T￿￿rte￿ Report F(the year ended 31 Aueiist 2022 The RAwos saddened to ￿arn of deaths fftrthÈ pastyoard￿rfom￿TrQasurÈr Chris Wilkinson OBE ￿ Ltyd Rogers of RNer5ide CH RA, Jarnes BuVeT MBE W Fred Cumiry Hon fAitt ￿ OamÈ P￿1 Re80 ￿ Ken H(￿ard OBE ￿ PTofessor Brian catIb￿ N Carmen Herrera H(￿ BA￿j the Hcwary Felos Harrisw &"rtWi5tle and Is5ey Mryake. The édkivA￿were ekned as HmaryAtademicièns duri￿ thÈ yw.. On 9 SÈptembÈr2021. Pipikjtti Rist and Elkn GalWr. The fOlkn￿￿ were ebErted as HoThyary Fdl(A¥5 during the ye4r.' On 14 December 2021, profes￿ Dame Sarah Giyoert FMedSu" and Hi51wrn IAatar. The folkJwin8wefeeletted as Royal kademKians duriogthe ￿r." On 9 SeptemLr 2021. Amanda Levete in the cate8oryofArthrtecttwe. On 14 Oecembtr 2021. MKhati knitage im thÈ tate£￿ of Paintiffj Peter Barber ￿ the tatepry of Archltecttsre. and Ryan Gander in cateiory of Scu¥>ture. On 29 March 2022. the cc41ecb¥e A5sefflb￿ in the categryy of hchitertwe. Kathernt J￿5 uteg¢)ry of Prirtmakw and Hew Ltth in the c3tegc¥y of SCulp￿re. On 9 Jur 2022. Clare Woods in thÈ catew¥ ol Paintm& Shazeh Houshlay and 8rfan Grlffiths kn the category ol Scvture. SenlorLeadershlpTeam Led bythe5e£retary and (hiefEMecutNe. sv4endYertW5 have resporsiTh4tyforthe foThoiry areas.. Ex￿b￿l0￿￿AUdIertt Experiefice. Colledion5 afid Learnin& the RA 5dKds. Developmenl CorpL¥e SeThKes. and Finance. AcnvmES. ACHIEVEMENTS AND IMpAcr Revlew ol a(ti¥ltyes back w 2021n2. we clurt tsurproyESS in thÈ dÈscribÈd abtr. f¥hibitiOIIS Mryln 6ollerie5 Renowned artist Yink Shmibore PA ¢ty￿A￿¢d ttr 5tMnmtrEthibit)n 3031122 september 2021- 2 January 20221 vthich. once again. vias held in autumn I ￿nter due to on801￿ disruplions caused by the parthrnK. compri￿￿8 1,300 work5 across a variety of disciplines. the exhibition featured Se￿-taUght artists. artists with di￿lI11tyeS. ¥li5ts from the African diaspora, aswell as arrisis tralned in the Western traditson blrt work in a more ¥ts(eral manner_ Selected underthe rubr of-Redairnin8Magie, theexhikHtiDn twk in5pwationfrorn the perieptiLill5ar¥JHleasaTgund magicthatare irwTained In￿rtain Pan-Af¥ican cultures and a conty.nual source ol cu￿v￿1 creation. ￿th￿Bh rnog￿ is often percei￿ed as beingforeign to we5tem Ideas and western enllghtenment cuhure. the emhibllton sou8ht to transcend a We5tem art historical FerspectNe to focus on the tr4nsformatNe pLYAy5 of the fflawcal in arL and 8 return to the wsteral, joyful aspects ol tmakin8. Re￿¢(a Saker PIIA chaired a selectirmcornTrwttee compriyng Royal Ac•lemicians Tony Bevan RA VonEs5oJJ(bffi W Mali Mtirvi5 RA, Hyfflphrey Ocean RA, Eva Rothschlld RA, Bob and Roberta knith R4 Emm? Std)bon RA Sir Da￿d Adiaye The exhibitk>n w•5 generously supported by In5itht InVe￿me￿ and was ￿sited byat0￿ of 146,392 pecwe. Spann￿ Fra￿$ Bacon's ImweSSbb y￿eaTC￿eer, Frunds S￿]." AytrtyklBeust129 January 2022- 17 41rrfil 20221 was the first exhikn'tion to chart the devekwent ol the thr¢wh the ￿rts of his fasclnation %th animals and was iBindlty Schedu￿ for 2020 but P05tp(fftd due tts the pandemK. A W of 45 wLYks expSDred this urrTinilastifiation both shaped 8a£on's approath to the hufflan Wy and distorted it.. hw, cau8ht 4t rnost extyerne mments ol existenre. M'5fi8ures are barelyrewnisaNe as humanor beast. The exhitkn"oTrwasorwised thematically ioemphasise Bacon's blurrln8 of human and animal properties. often toxistentialmds: recuwTin8 vse of-furiÈ<. (v hybrid h￿￿an01d10rrn$,. hlsfastination wlth stL￿￿$01bodleS in rnotion,and ￿￿theSe tohi5Ilistryted nudes, a5well 45w(ththatdiiectty rdated toh155exualTrty. It featured many n￿ab￿ wtrs. Sndudin8 the lasi pa)tiry worked on before ht5 death. A trio of bullfi4ht paintiw. displayed at the tore of the exhibttth the G311eties' Central Hall. wereexhibTted toytsforthe first tlme. The Royal Academ¥ expresse5 its heartfelt thanks to ￿ s￿[0$1￿ of 411 the leryler5 tothe ex11b￿0￿. who without exception renewed thÈir supp¢rt of the exh1brfl￿ de5piie the i￿5ed dates. ￿ e*l¥bi￿￿. ￿lch drew ra¥e revie￿. was gererously sUPPOrted b¥Chrisbe5. and wasvisited bya total of 146.694 peopk. Page.. 9

The Royal A¢ademy of Arts Trustee￿ Report For the year ended 31 Augwt 2022 After two years wnter. the 5tHnn￿r Exhi&tion 2022121 ￿ne 2022- 21 Ausust 20221 finalty retumed tt> its Usual sthimer schedule. topKal for our tines. the theme clkisen by exhI￿"t￿ toordiNtor, WibJin¢ RA. wa5"Clirnote-. A broad and all-encornp45S1W 5ubiecL the exNbitiM I￿uded mtye than l.l(l) acr055 1 variÈty of disciplines. submissSon5 approached the theme with creativrtyand. whetherpre5entEd as cri5isoropportunity. ni8htrnare.orrnemory, OTsirnp￿ aS￿r everydayexperiente ol the weather. the exhitsts.on deM￿strated theextensNt impattof the dimate and its impl￿all(￿S as ¥ defining issye in our ffl(Klern age. Rebecca sa￿er PRA cha¥ed a seletth?n committee iornprisiry Royal Academicians Stephen Chambers RA. David Mach RA. Far$h￿ MoussaTri RA Grav￿ Perry R4 Conrad Shawcross Rl and Bill Wo(xlrow RA. Ran• eegvm RA and Nlall McLaugNin AAalso curated a Sdectk￿of arthitecture w[￿ksa(ro$sI￿0ÈaI$eries. Once a8ain, the S￿rner Exhibitlon was kindly 5UPWted by Insw In¥estmeni and was ¥151ted bya totsl of 139.230 PeLWe. TheJillr¢rn undArthurM. Socler Wing oA6olleri Around photographs made up the eNhibIl￿n LWtitnes.' Tr ArrhitedwqlPhotO9rophs of Hélène 8inet123 October 2021- 23 January 20221 Supported by PKtÈt, thÈ exh"bTlion expbxed the varJu5 historic and conteThpofary buihlin8s Bthei has photographed durln8 her career and. in d(xng 50. dem￿$1[3ted her ability to Caplure ihe IW. space anLI forrn that unites architecture, b2 rt 19705 Orutalism w an 18" ceTrtLry oty thurth. Crytydered -thÈ arthitetvs photographer" by many. the exhibrtioTh foregrounded her ck>5e cned duttothe pandeffrio Ithistlerfs Womunin Wlwte.'JpoMO Hiffemoft126 February 2022- 23 May 2Q221 was or8afi￿d in crjlaboration with the NatiL¥￿1 Galbery of A¢ Washin￿0Th. Described as one of th -rn05t mesrnerisingfi9[￿es modem ort hsstorf lThe TdeEraphl. Jwna Hiffeman was twjth a muse and confidante to the artlst James Mct4eill Whistler. ThE exhibitson sought io unccryer the ro￿ Hiffeman played in the artist's life and work and d15¢0ver how Whlstlerfs re¥c4utionary paintiTr85 featuring Hiffefflan wentLW) to Infiue￿e other artists and artistir vn(F¥efflents. Jpported by the TERIiA Foundatth for American Art. the exhlts.tl￿ Wa5 ￿￿ted by a total of 46.IYJI peopse. The GobrielleJungels.WsnklerGollefte5 De$pite bel￿one01 Brftaln's best4r)wnwti5ts.aV￿UIts9f￿llAsd￿￿S3Thd are8uIareXN￿toIatthe5YMrnerExhlb1tlofi. Lore Constoble130 O£tober 2021- 13 February 20221 was the first maiw retr05pectwe d John Constsble's to be held at the Academy. Spanning frorn 1825 until the artisvs unexpected death in 1837. exhknition explored constab￿,$ late and irKrea5ifith expressive style. trlrvAin8 tceether rnajeslK oil painbw and plein air skeiches of the British countryside. from Harnpstead Heath arKI St<￿ehEnSe to 8rhton seafront as ll as studies ol ￿ather plrbt¥nena capturlne ethereal ckjud fomiatlons. dramatK storrns. dap￿e<l sunli8hL arml rainbows. De￿￿￿ed by The fime5 as a "triumplxrrjt showcose-. t exhlbitionwas ¥isiied bya totsl of ￿.60? peL¥Ie. Kyosol.. The 15roel Gddmun CollÉttic¥I119 March 2ff22 - 19 June 20221 was the first UK exhi&tKJn M almost thlrtv years io explDre the of jap￿￿ painter Kawanabe Kyosai. Known his independent ¥irit but often overlooked ihlavour of his earfier counterparts. Kyosal is celebrated for hi5 akn.lity to tr￿ge popu14r culture aThJ traditlonal art. Brln8in& together highly finlshed paintyngs w￿lCul prints and illustrated books. this exhibitw)n sou8ht to uncover both the environment in wh.ch Kvosai's works were created as ll as the great pdbtical, social. and tultural chawes taki￿ place in Japan at the ehd of thÈ nneteenth century. K￿dty SU￿￿ted by Kajw))a. the exhibit￿WaS ¥￿ited by a totsl of42,037 pecwe. first comprehensNe exhi￿"1￿} of MI￿On A¥erfs in Europe. Mth Avety. kn￿11¢0n Colovrist115 July 2022 - 16 O£tober 20221 brought a tareful selecknon of the artist's most celebrated work5. Totallin8 a￿L￿nd 70 paSntlngs, all d4tln8 fvom the 1930s-19605, ￿ exhibitson W￿ht to dÈmMstrate the extent io wthich Avery perfeded hi5 unique ability to balance cdour and form in Increa￿nI1vabstra¢tedcornpo$ltlon& In doiry y), thÈtxhilxbcffi also made dearthe influential role Avery played in the unftAding and deveknpin8 of Abstrxt ExpressK4Nsm. The zrwrq interest in Avery'5 work aThJ attempt 8St art hisiorians to itre¥aluate the 4rtystr5 ach￿r￿entS made this exh4Jiih)o particulath timety. The ethibition wa5 or8anised in collaboration ith The Modern Art Museum ofFort Worthand the Wad5WOrthAtheneum Museum olArt. Own8 to the pandemic. the exhibY(ion was presented atthe Pudemy ￿ the end rher than at the start of the tour. We afe deeply Sndebted to l¢nderstothe ex￿11100 for a8reeinE theextel￿K)n of the loans. The exhibiknon was kindly supported bythe Milton and Salty Avery Arts FWnrt•t￿. TERFLA Foundation for knwican Art. Cockayne." The LO￿lon Community Foundatien. Virtlyia Miro. and Barnin. A total of 57.6l6pe0p￿ ¥ry5ited the Èxhmjitiw. Arthitthre proyamrne To coincide with ￿9hr bnes.. The ￿ChI￿rtUrO1Ph0tfj9ro￿5 of Hélkne 8ineton show In the lilhan and Arthur M. Sacwer Wing of GaIler￿s. R4 curator and Head ol Architectiire Vkky Rithardson wa5 I￿ne￿ by Hélèr Owlet in a ¢￿VersatIon celebrating PaBe.' 10

The Royal P&)demy ofArts Tntsiees. Report For the year ended 31 Awtst 2022 the relatfjorthp between music and •rthitertyre (Hdèrte c0nverstrt￿.' Ardjitecture ondmusic, Thutsday 4 November 20211. Hosted as a live e¥entat StGety8e's Bloomsbury. the edent exphyed betweEn music and archttetture con change our underrtandin8 of spa(e. A short recital by cellist Cealk1 ￿TralI Idk)wed by a Sm￿1 drink5 rereption wa5 alsts IrKhJded as partotthe event In M•rth 2022.Johrt Heiduk.. IL￿￿0￿ Mosque122 March 2022- 10 JU￿ 2023L opened Rrrfwkl and Rita MrAul4yfjallery. The first, free in5ts1L4tion in the RA'S ntw dÈditated space kn architetture, the ￿rIe-￿a￿ instsllation presented Helduk's design for the Widow's Hotsse. ore ol the 68"ob￿cts~ in his seminal art￿)rk lortaster/ Hortover Moswe. As popular royal ertertainments of the 16, and 17 (thituries. the masque was used by HeNluk as a way to transf(Ym the way architeciufe Is tsught and imawned. John HeNluk.. MOS￿ seeks to embody this thknsophy and celebrate Hejduk's belf that architecture fvas ihe powerto make alternatwerylds. The in5tan4boThwas dE¥Ir￿ th td1aboratl￿ studethts from the Royal College of Art MA lrtericrf Desi￿ proyamme arKI. duiiry the dispLIy, a Se￿ ol pre5erbtstion5 by sludtnts and youn8 people ￿11 explore Hejduk's lofttaster/Hortover Masque and the resLthw)K mcllels. tyth the ￿￿e-B￿kIl￿ Worlds" shown al￿sIde the Iytdow's Mouse. ln5tslknti￿ ha5 be￿ kiTrJty swrttd by CDUK. In June 2022, the RA partnered once a83in with the London Fe$￿al of P4thitecture for the RA ArC￿techITe Symposium (Tuesda¥ 7 June 20221. F%)5ted in ￿ eenjarnin Wtst Let1U￿ Theatre at the Rl ￿esentat)￿S frc•n spatial kyathtioners explored iopics such as athsm. the agency of arthitects. t￿at1￿Cal￿. and narr4tNe in arthittttufe. tina Ghotmeh. fr￿nder and principal tsf knnaGhotrneh ArthTtectsddwered a luthwe thich expbred herhurnanistapproach toarchitecture and the guiding principle of an-arrh4edlo8y tsf tht fu￿re-. Thisds followed by a debate, a panel discusyon inspi￿d by the questim. -con orthifects moke t1￿ffer￿￿. Celebrating it5 31"yEar. theAnnualxthitettuie Lecture (m￿ I8JU￿ 20221 was dd¢vered by Bruther founders, Stephanie Bru and ￿exan(￿e Therth)t The knture expkyed eruttrf5 crynmitynenttoflÈxdJle. Pu￿bulldA￿S and theprindplesthatdrfve their influentkil pradice. The event was supported by CDUK through a medY• partnership wth Oeieen, the IEctute wa5 ble to be INe Streamed forthose una￿￿ toatteThJ kn persl￿. The AudRnce and ExperierKe team5 Ctybllw tr SUPWt the missth by three mearts.. Reoch: d￿10￿1"￿￿ thid 8rrw1r￿ a broad. divwse. and loyal audience for RA and site, Or￿1Th￿. and inwfjdeTcuhural debate. particularlotus on 82C relathtinships.. Revenue.. m3￿milne the finèrvial fetum of the BA offer to suppcKt its work and its future, in line with a hJngst3nding tr￿litiOn olfinaficial indepeThlKe arxl setf-sustainability.. aThJ Reputotion." ueabnKand delNering a con51Stentlv ex¢d￿nteXpern¢e- wekomiwervBiniar#l d￿1r￿tivety RA in th4rarter-¥ros5 ¢¥try￿srtLytouthpoint and inteiacknon. Having reopened In May 2021 foll¢)wI￿ cbsures due to the pandemK aTrJ an unprecedented Ferilxl of ￿n￿rtainty. the focu5 fcrf ihe Sales, Marketing and Loyè1tyteam5tt￿S ￿OrWaSt0 build back￿5[tur￿￿rffid￿nCÈ across all oUra￿lIentes'. drivlng return Tr￿11￿5 to the M enctyJraginE existing members of The frie￿1$ of the Aoyal Academy fflemberthip 5cherne to reTr￿W and new visitors tojoin. by rntans 0fioined.upknya￿y. commercial. afvj campawn martetir. The figures achved fort￿ financlal have exceeded ￿an. vJith admi55ion inc¢mE fr(Mn exhibiburts the donatxxl Tect￿ed from The Friends of the Royal Academv and in£thne fre￿ Commerci￿ all refleciiry reC￿ry post.p¥thmK 4rn1 the RA'$ aknllty to maximise the return fvorn this demafftd. Atthe ￿art0f￿r m￿dèts ￿ ourmffffiitrnellttowelcomir¥visbtor5tothe RA it5eW. Th¢ profvssv)nalism and service provided by Frwt of Htrjse teams wi￿l01$ returnin8 to swally distsnced enwr(￿￿￿nts. and the qualty of the Buidance provided, has helped rebuild c(xffidenct and ltyalty. Uw) ieopoNn& a new feedback email was introjuced and sent to all sitorsldhMnRtheirwsit. pro¥idin8¥aluable insi8hta5wellas a r4rrtd. C￿￿¢￿ent￿tans0f directcommunkabon.Thequality of the visitor experfjence corstknwjes to ifl¥din8 the LaurKh ￿ JoséTh"wo Restaurant and Poster Bar by JDsé in 6 Burlinoon GardeTh5. on8sidÈthe retentien ofprevlwsaudierKes. a keyfKus forthi5yearwa$ 5ettingthegroundworkforfuturE growth and I0￿- term audience developmtnt ahd dibsrf￿IO￿. Anafysrs and research of martet derna￿l resulted in ￿¢0MMendatIors. $￿seqUentI¥ opproved, to ￿trOl￿tea new hall-fv stheme fortkne a8ed 25 and under from rext￿ar. Continued effortsto Impr￿ custon*r ser¥ice. data (wat1)r￿. I￿ght aThJCRM de￿r￿d a range of optimi5Otions irnprcmng transxiionèl eff￿￿ncY for the (xjstomw Creati￿ new £¥>portunths incc4ne. RA team Members presented ai the Tes5itura amual iniernaiicrfwl confererKe. the industry4eadir8developments bein8achiÈved at the PA. Page= 11

The Royal Academy of Arts Trustee< Report Forthe year ended 31 Au8Wt ZOI2 A compreheThswe review of 18ital actNityard the chan8iThJe¥yttatx)ns of authen￿$ was undertaken. anaty5in8RA8udiente beh8viourand apwites for diytsl ¢￿tent and benchrnalking￿Ihthe 5etttr and bey￿d. Recruitment ol the expertist rfftded totake the RAfrywardis Mwcomplete and ihe The￿ar￿lI flxus ￿ de¥ekJpingrontentthat meeisdi8ital audience reds and connects them to 0urm1u￿￿. The lncreaY￿ Irnw)rtan￿ of diwal was refiected comnmtment to d￿lta4 infras1tu￿urt. and out successful bid lust under £lm fundio8from Bkx)rnber8Plwlanthrryies' D¥ital kcelerator Fund. This proiertwllcontinue into 2023and has three separate strands ained at Updati￿ the user experience afwl infrastrutiurt tsf rnain website- deliverinR a di￿ts1 studio fu onlireevents: re5¢ar£hI￿thÈ (W￿$allOn.5 needs fow ￿￿11 asset marwenl. Digital infrastrutture also suppcts the RA'S main thite Subdomains. suth 3$ Exhibi￿ E¥plNef. RA Shop and Ywngknists. ￿￿￿ershOw￿b￿te, whKh auratted 4.3m se55fjons. Ac￿￿tyWa5 frKu5ed on maintainin8 a hi8h quallty of user experience aTrJ functionality arn7ss all thEse pLitfi)rm Through our trading 5ub51dlaries, an ex£eptOonany commercial performarKe wa5 {JE￿er￿d. tombTrrin8 exhibltion-led salos with lessms ￿arnI in prewious finonrial year. and the ptr¥)ds ol ch)sure during hch other aspects ol the RA we Sur￿551u1Iyde¥eI0Ptd for sak ¥ia ecommerre. This broader approach, arKI continLI Èvolution of the BA offer. was reflected in rec¢rd-breaking mnversion lates and spends which accelerated reco¥ery. ReAertin8 4tsider market trend5, RA tustomers returning to shop in person was refiected in a fflore Subdued yeaTftr ¢)nline retail. Ib)wtrer. thi5 chanrel Still achieved record sales in Christmas Cards by Royal Acadernioa￿ and invited arbst& for this finantial year. were cards and prodLKts developed with youn8artists from the Youn8rt5sts' IryASS-l. thirh prlwed hugely POPL4ai. Throu6htsuttht)ar. 0a￿H￿k￿SknlwolO1s￿MJca￿hWr￿￿inytdtOa¢lWwrtveryslr￿￿8$a￿sat￿8r￿SselS,15tsTrb￿, and Chicago t(xJr vwues. in bot4shops worbjwide and £￿ir. A rary of eXh"b1tk￿ Cat)gue5 was also published.. Lote Constoble exploring the %wrk of a kry figure in the AcaderNrfs hist(￿ by a leadiry sd¥￿ar ol his Wrrk. tight Line5 fÈatured Hélène &'ntt's beautilully installed showofarthtectural photograph5 and prodU￿d in rectsd time. Milton Avery. whose tour had been rescheduled duetothe pandÈm.Wasastro￿perf￿rntraI FC¢tW¢ytha￿1 H4rtfordand intheArnEri￿ bookshops afid perfomied ￿mIlarty ll ￿ iwlon. The biggest 511cce55 Frtirtos 8ttcon. thich sold 14,455 copies at the RA thrtn8 it5 run. ￿side heahhy sales worldwde. vrith trade co-editions in French and Outch. For ￿￿5￿1, a sthokTty catsbgue aThJ a smaller E"fft bcok %tre desi8nÈd for thÈ more rnedÈst audience. Collaboratims with three Rwal Acadefflician5 were also published.. a vdume of Oa¥M Remfry RA'S watercdours, d book of rew M)rk made in the Lammemiulrs by 8arbara Rae RAduiingthe p4rKlemi¢ and an Irish sketchbook by Nornian R Colle¢isons Collert￿n5 $t4ff COQTdlrMted the d￿￿ery aTrJ preSentsth￿ of tt Hatinym jU￿1¢t p¢Mtfoho. a Oft from sdected Rwal Academician5 indudirvd Rana Be8urn PA, Yirtha S￿)nIbare PA. WolFgan8Tillman5 RA. toQueeTh Eliiabeth11, ¢)n theoccasic of her Plaiinum Jubilee. The work5 ￿11 be dispioyed at The QuÈerfs Gallery, Bithngham P￿a¢e in January 2023. New acquisfjtlon5 Incfwled C￿￿Orn￿ Work5 fTown AmaTrJa K4 and Jar and Iwse Wilson Othe¥ r￿ble new acquisttions included yfis from Rebetta Saltev p￿ Sirchristophei LÈ 8run pp￿ Mithael Amiitage N KobbyAdi RA khod5. Emrna Stibbon ￿ and all contributyngartysts forthe Vornlshing DOYportf￿m). We were also ￿Ven In album of photographsof S￿dents atwodE in the Royal AcadernyScho(A5. datin8fvomtheeady and compled ￿Student Kate Olver￿￿11t$tudV1n8 here11%141. Taking a lead from Slrknhua Rewx4Js's stwI￿ Experiments. the display at ￿ front of the Collections Gallery."Exploration5 in Paint-. featured artwowks by seven current Royal kademThns, all uwe5ti8atii tF rnaterlal qualities and expressi¥e potential of palnt. It irKludes W(xks by Basil Beattie N lafi McKee¥er RA. Fiona Rae RA. Sean Scully ￿ and Terry Setth W togetherwith bans frc¥)) Sw Frank 6Th￿ing RA a￿1 &rChrIrti￿T Le PPKA. Jo¢k MtFodyTr PA.. T17u￿$t wlthout 0 Gu￿bOOk opened IiA Weston RO￿ ￿ 5 Feb￿￿¥ 2022 and ran until 10 ApFII 2022, att¥ortiTr8 20.995 visiti)rs duFin8 its run. Or¥inal￿* pL4nned to mark the artisV5 IHrt￿j8¥ in 2020. tNs free exhibitionfocused on McFad¥en'5 lond￿ paintiw. ￿cOMpa$S1￿ kr8e-scale vistas iTrJ recent figure Pathtings. PaBe.' 12

The Royal Academy of Arts Trustees. Report Forthe year ended 31 Aueust 2022 In Aprll 2022, the RA C4Ylectth)Ths te¥m. vAth 5tulpture conservators atyj a ded￿ated ieam of art ￿ndIers, removed packed 82 plèstercasts from the RASchwls. ready fort￿ main the RA Proitd in Budinoon Hotsse. The casts wtre deinstalled fvom thTÉe main across the SCI￿1$ - the irfe Room, the First Year Studios Iforrnerfy the Architecture St￿￿401 and the C45t CwKlor. A huy varty of casts have been stored durffw the RA Schcds ProiecL ranglng frc¥n small redan8ular relefs to colossal 2(th8 Casts ot Rixnon temple aTchitechtral features. Two architectural casts, found behind the 13ke walls of the Dxk RO￿ In the Fwst Year stL￿￿ f(￿eTty I￿8h1 to be IOSL 4rKI WEfe bJentlfi¢d uskn8 photO8raphs of the RA Sch(K>ls from 1876. lfjbr￿, Plthire UWI and Af19¥eardd5. wth youryg peopk attending theyear-longserles of free online workshop5. Ifi CDllabofatith) ryth ArchiCtwe and RA khc4)Is. attRkt W its first Sumrner School. where the 5tudeThts tC4)k part in an intrn5ive Week4rA￿￿tykthty fwdlspky scheduled for October 2022. In Spring 2022. relaU￿kn￿d FamlyStud¥) p￿raMMe•th a ffrf>nthtyofterdartmakingwork5hq15 ond trIal￿d ourthr51 cross.campus summer Famity Day whKh exp￿ ￿therne-thlnk Ike an artisf. The ieam atso delwered a ek oftyrtth> playsesslonsat Grosvenw Square. durirqjune 2022 half-te￿. W by Assemble Play andlcomfft8upto6c#Jpartkants per day. Our fllmmakin8project for local peorAe wmlh respthtsibifrties c￿M￿ated in a screerww forfrleThJs and famlly and wa5 dDEurnented inan IiA Wazineariicbe In the 2022 editK)n. The regular wo8ramme of fam wwkslw5 for chikI￿n V&ith SEND ISpÉtial Educational Needs and tlsabilityl moved back onsite. and we hosted an additwl proJect a select group of kn8-5tsnding participant5. at whith tlw w1)dL￿ed xsrk for the •rchitectsJrE display, Johrt Hejduk.. It￿ Mosoue. Thew contrib￿￿￿. tyUed ￿r1eTry5h1p and ￿¢￿erf wa5 on displav betréeen july3￿ October2022. Adult Leamin8 tontinuedthe success oflts ￿lifie w￿ramrne with Iwtrearrd artsts conver5ati¢)rs th Yinka %vnlbaie and Rvan Gander RA Elect. CUrat1¥5t41kseWor￿gthe txhikntiL)s Lote ConstoNe Whistlets Womon in Whlte."Joonno Hiffern¢7n. The pro4ramme a150 I￿￿￿ed an ¢￿11￿ disfAJ55iOn h￿lhting the t¢)nnÈth¢)s between the work ol artist KawanabÈ Kyosai and ma￿3, ￿ a panel disojssion in artists and rary)at8rv5 thxw5¥ed role of fvwre 8ener3bon ofartists in tacklin0t￿ issue ol ￿L￿al warniiw and dIM￿e cwe. The Coniemporary Art Summer School and the Palnting ￿rnrner School Ere the mort mular, sohJ-coJt tourses across our 5ucressful PT4dical cours ind dasses proyamme. Well-attended art historyeekends also included Japan, the muse in art. Frands Bacon. and lo￿ constab￿ ond the lorwJ5cape art tradithtin. The Learnwvd team also wtred across the RA to ensure successful prowtson l(ff the 8hxffiber£ dityal studio proiecl tMJlklb￿ gn ￿ SIKce55 of the Saturday Sketth Chjb in 2021 whKh 22.(0) p4rtitipants. acmss $4 dilfeyeni ctyJnirle& After dlswptions In Iniernat*ffjal tr￿1, the Executwe Master in Curtural Lership's year was dethcated to Work1￿ on dtllvery backJo8 both in Maastritht Imarch and September 20221 and in Lond(m Ioctober 2021 and July 20221, to enable internatio￿1 stvtlents to ratch w with thtir ptors. In totsl sixlull M￿juleS ddwered. whKh drew excelentfeedbac* ors Pè&e.' 13

The R¢)yal Academy ofArts T￿￿te￿ Report For the year ended 31 Au8ityt 2022 the curated mim of academr and prOfoss￿lI speakeTS. IntematKsnèl awetite for the proEramme wo5 confirmed in March 2022 when thelcwrth EMCLcoh(Yt started Iwth stL¥lents fr¢yn eight tountries. The teamsacr0ssc0l￿ti￿slIKI Leainingrontinued tocontribute widetyto 5tholathpubltstion& urA¥er5ity ￿CtUres. TV and radio irbteMews and writin8forour Lvwn RAmagazineand ￿l￿(c￿￿ent flA SthoolsShryA7 The RA Schools 2022Gra41u3tth Showw3s In￿aled across nWeston strjd￿. Life R(him. RA khook 5tudi05 and the RA Schools sculpture workshop. 8¥ilt in 1868 PA Scho(As 5tuditss in BUdin￿On House are on the brink of ￿stOration and renewal. Aware thaitheywere the lam studentstoshrwin thestwliopri0rtothebuildi￿Proptl much ofthework presented by the graduatingstudents atthE PAktKJo15thtrw2022 &knthN4ed￿dar￿￿ atti¥tyen8ydwith the KAScIK￿S. architetture and histcv. rxathotlon 15 student$ graduated tfvs ￿ar- 14 of whryn hod coMp￿ted fouryt¥s at the RA indudinR the pandemic catcKup ye¥. DNiThÈ South8atÈ-5mlth ethed tojthn The graduatirhg sttydents frorn secwd yeat. Ind made thls yearihelr final one, therefore cornpletin8 the prvdramrne in three 3rs. The YadUati￿ ￿renK￿ toc pL4ce, ￿ the preseThcE of the wknle IIA Schoolsforiheffirsi tsme. a￿￿￿Je family. frvknjs 5tsftin tr￿ Btniimin Wesi iettwe Theatre. Prograrnme We were finally able to weki)me tl Cla55 of 2024- 11 of have been Warti￿ an extya year to take up thÈiT P￿¢ at t RA Schog15 as their arrival W been postponed by kxkdom aThl the catch.up ￿al. Theacademlc proyammeforthe ¥tar irKI￿￿ed lecturesfrml Ffank B Wildenstlen111. Farsl¥d Mous5avl RA. Dawn AdÈ5. RA PTofe5501 of the FhstoryofArt: artist talks incltyjed Rabz iansKiuoL of iar¥uid Hands. Y%nka ShcM)ibare th and Dean Kennin& as well a5 ¢t4wthÈory worksmps Emyr Wikkim Yeaf-youp crits were by the Seniu Leclurers ￿ ￿ests indudin8 Simeon Oarday. m￿￿ka Muritu. Sebastian kfford. Clémentine 8edos. Phoebe Umwih. awisi Frttrwa￿la￿ aThl Phlfjp Lai TutoTials weie 8Nen ￿ FederKo Campaena. Amdreas Reiter Raabe. Mike Nels￿ Oamn Roach. Hardd Offeh, Ali50n WildiTrg W Ernma HrL andjenrrifei MartInam¢)8Stothers.(￿fProle$$ors Lubav frfjmMIRiALi50nWildiniFW FK)a Banner RA Elect, Mike Nelwi RA, Ch4ntslJoffe RA3knwÈ tthorialk AthIs51￿$ From 711 applkatws. we shortlisted49for irrtryviewand St￿tted io studentt all ofwhom accepted theirploce5. De5pitst constra1￿$ we are undergNeTr our lad( olaccess to Internati(xwl Student Vssas. we have mafiazed to recruit an ￿ternatIOn11 voup whirh includes I￿$t$ from Mrferia, Pah"stan. The Netherland5. 8raiil and also MKlr¥iduas with An8ltrFrench and Nepalese herita8e. We have aprh)inted Un￿￿￿ba% Ud(th to ￿ thè StaN 2022-2023. they ha￿ iixned u5 from Chica80. The Sta Fel1DV￿hlP is 3 Year.1￿ resfjdencyat the ￿ 5th0(45 fw anAMeri￿n art￿¢ SUMJ¢)rted by the Starr Foundath)n. SwAeDt Suppryl Fwid •hd IMsariÈs We have had a greater number of applicatTh5 tothE Student Susy#xi Fund this wluth hove onty bEen mon•8tabl due to the suppx)rt 8Nen by Dunard aThJ frcffj the K4 Schods Auctim fund Wowkshtws The new RA Schoc4swork5hops in ￿llInglOnGarden5 have been in full use since opening earfier m 2022. The rbtw 5we53llow for more flexible and versatik rrkinE methodsand hwe been madepwb tyfunds raisedat the RA SchoolsAnnual Dinner and 14uction. The locattr￿ ¢rf the wotkslbjps has attwated the prewo¥￿¥ pasyvt spo£e and somewhat urKler￿seo Lovelace Courtyard. Iransformin8rt intoa rewkxalpointwknest•ff studentsatTossthe camws areer￿ur•$ed tomeeL interacL work. •nd socialist. Pa8e.' 14

The Royal kademy of Arts Trnstee< Report Forthe year ended 31 Augurt 2022 ProftssofS- We thank FarshKI Moussavl has ton to the end of her tsm) as Fyofessor of thhltecDJre and ￿11 be replaced by Prol Peter Sljohn (Adam ca￿50 Petor Stjohn PAI. CriticolProctKeFeVow. We thank Nina Trith. kylwtontribubL￿ as Crilical Felhjwto the RA Scknls 2021.2022. Westm Sludlo proyamme We mounted five sh<y4s in theweston ￿￿d￿j{￿theye3r. three ynalkn ycwpshw byyear students-Premium5.' the emphay5 of this series is of experimentation, a tests￿ which provKles a critical and pedawec point, midway through the prcqramme. is atso an opp(wtynity for vi5il(x5 to encountw I t ￿ at wowk in the Academy. Premiurn5 shows wtre Followed bythe K4klh)ols sl￿Win Jur 2022. The newwestcffj Studio Pflxrafflmeiywd thr opptytui¥ty fLY tyjrstarr Felltr, U.& artim Ke¥inGalla8her. w showhlswork. His show 8eoton ran thrtyJ4h December 2021. Stuthos We held our vibrant annualopenStudi05e¥entfLYPatrons￿d othersupptyters c) 25 November 2021. Students putwther a show-Ted of films which was presented in the Life Room. and a fr¥Y porforrnance rehearsal by Catinca Malèimare in The Keeperf5 Ro(Th. Tl evÈningtame io a dimtxticclose Daria Bhjm's li¥ performarKe biirwn8together live looped rnusi¢. vhleo, vocls. da￿e. Collaborathns resldendes wlw5 Ch￿$ Heun Sin Kan ￿￿ertOOk the Kll Art FOUr￿t￿ res¥knry PA5th(x￿5 werJUlyandAu￿$t 2022. The fvchar(t Ford Award, fimds six artists fr¢)m drfltrentart sclxds to travd to Madrid aThJ draw in the Prado. awarded the opportunity touark Keatiey120221. He wll ￿ trave￿rgI0 Madnd overtsx Summer 2022. As part of the Burtington Gardens PuL4ie Realm Stheme, vrt re approxhed by the proRd le•Jer. Cynthia GranL who proposed a commissiw project to furtherenhance BUrlIn8ts￿ GardEns. Thp project ained to reS0￿e the use and appearance gf the three phone boxes outside the east entran￿ io Budington Garden5. fvture entranco tothe R15Cht￿5. Thewinnin proposal wa5 by second yÈarstudeTht Max BoyLa whose wthl"SOS" was installed and hunched ￿ Novernber 2021. InAu8USt 2021,Anna Patterson120161 exkAbitedwthatTY￿￿I'5 HoLb5e.54TrJycornbelod8e.tnTwitkenhamatthe cuknlnation of her re5identy the. The seleCt￿)ft prttess ￿ a yaduate of the RA is r￿frtated by ￿ RA Schx•ls ann￿lly. The grwluate recwves 4 stipend, has access iothe house aThJ ¢(￿trI￿jleS tothe Tumer's Hrwse ieamiw Pro8ramme. We were appmatfr￿ by the Rev. Luty Withet¢ Chaplain to the Academy. to Klerrtfy an ortist to fvlfil a cornnmssion far St James's Piccadilty, to be inStal￿d at the of Cop 26. The Keeper, Cath Pilkinwon RA. and Eranda Professor of Drawing All$￿ Wilding RA, Rev. Lucy Winkett and another rep￿SEntati% of 5t. James's seleued arttst 4raduate. EsmerebJa Valenoa strom, thosewort wa5 exh"lJited in the dKth. We were delKhted to receNe wtstsndw¥ wppryl 4¢ro5sthe RA th's yeai. beyn Str￿ a very successful event ¥)sted by the Royal Acadern¥ Trusiees Dame Carolyn M¢C•ll and VaNn ch￿￿￿￿. FollowinB thE evenL Wikin8 River Crnises i04ned as the RA'5 fiTSt Cdiectw)n ￿pporter sirKe 201& Re8ardlng ihe eXhib￿lI0n$ programme. were ￿eased to wekome the Sp￿15C[Ship of Christ￿S lo¥ Froncis 8ocon.' Mon (￿d 8eoJt in January 2022. This was their se£cffid exhibit￿ sp￿$￿$hip Sir￿ Roth"col Geometry in 2014. The fdlowinl month. WÈ opened Wh15tler5 Worn¢¥nin Whits..jo￿#tr Hiffernoft. forwthith were8ratefultoTerra Foundatknn fortheir SLlPPOrt of th15 and their on8oinE SUPPOrt ofexhilM"tim5 Further ahead ITh the pro8Tamme. we knk fapward to Mokiry Modeirttsm thi5 lutumn amd Imwessionists an Poper in 2023. We have receNed confimavon of a generou5 yant of £2fKlk from the Huo Family Found3tK)n th W&ill 80 towards both these exhitibons. F￿ the EXh￿rI￿)nS Collectfjr)s departftnts, we ¥e also excited to ￿ntr￿u¢e two 2-year Curatorkll through wtnership ith the Genesi5 FiyJNJation. P￿t.. l5

The Royal Academy of Art5 Trustees. Report Fwthe year ended 31 August 2022 In the sumrner and f¢¥ the &xteenth Ir￿l$ht Irwestment en￿ved S￿￿￿TShiP of thE Sumjrti Exhitstson. We afe huge￿ 8ratefvl lor their(￿tInUed 5UPPfrt. AtthE Same time. we welcoDd Burberry as Sup[￿rterS of the Summer Exhibition pre￿￿W Party in bthh Autumn 2021 and ￿rnMer 2022. Alon85Kle the Summer Exlwbition 2022, Chrls Huen Sin Kan berJrne thE fifth artlst4HuidEn¢È tohave a showcaseat the KA in ￿ onAc4re partnerslmp bekn PAandthE KII kn Foundaiion. Thii year have recewed much support toward5 our am of thepEned diwkl en84emert. 01oomber8 Ph1lanthrry￿ h45 8Nen a lust under Elm as part of thelr ￿rtaI Accelerator fvwamrne. Thi5 YII greatty refresh and enhance ourcurrent dl8ital Infrastructure. Au05s 2021 ¥r¥J 2Q22. thÈ Natalia Cola Ftyjndation has supported Onli￿ art15ts tslks arKI thi5 supmwll continue Inio 2023 aswe embark rm a hybrid prcyarnme ol events in the 8enjamin West Letture Theatre. We ￿le 50rry to le•m of the pas￿￿801 RobY¢ Ilarnbm fjn June 2022. ftckn"n was thedvivingforce bEhind the fouThJSng of the Young Artists Summer sh￿ ITh 2018. Her rontinued 5UPPOrt made the YtyJr¥ Artists &Jmmer Show possibEe in its fourth year iththe w0jertsuc(e5sful￿eslabw￿d in the RA'sarnuol calendar. We bvere pleased t0$eethere￿ffl ol irFperw everbtstotht Patrth)swoernmme. Some of theh¥hli8ht5included ￿temal10naI trips to La Bnnalt di Venia aThJ the Morosov at Foundati￿ L￿￿vultttirt. Last￿. we were deeply grateful flx 5UPPOrt of mry iThlN¥Juals eermusly left the RA lew dth•tiMs. which •nounted to £214k fLYthe year. The Ser¥ice5 Fillar tomlxnesthe mar￿￿t ofEstètes. IT. Le8al Jnd G¢Nem4n¢e. The Royal Academy emph)ysa wKle range of peoplE drflÈrw)8skill setsfrom curators. art handlers andfur￿la1Ser5thlVugh to ècce55 officers, event managers aCcovThtsTh￿ ljur ¢d￿agueS are dedicated and hvihly ialented people vtho ire cornmitted to delNerin8 the hi8he5t 51andardstotyJr vtsitors. As at 31 Auyjst 2022. the effl￿0¥ed 312 staff to wpport the ganlsation in delityeri￿ its rnis9￿. Headcountzrew by 5% in the ￿a￿aSthe RArtrestsblished its prcvdramrnefollowing l( peri¢Jd5 ofcllwre Oue tothe paTrJemK. butitsstaffingleyel rern4ins 16%belowthÈ pre-pandemic level. reflecMgacontinued attentlonto C05t contr(A across the ¢Jryarmsati￿. Jr 202V22 People Plan set out to bulkj reyliwKe au055 ¢¥wisatithial sinthre ar41 Iny>rrr•e the operatlorwl effe£tiweness ofthe HRfunCt1￿ toensuTe we h•¥E SL4pJ f0th1a￿ cffj whKh to de¥lop our &Wr.te￿ strate1￿ an￿11th)n foi people at the FLA. The RA is commltted io er￿unn£ equity, d1veT￿, arKI indus1￿ across all we do. We operate Under the C[￿e assumption that Royal Aeademy which e￿o￿raCeS differentways of thinki￿ dtfftrÈnt approathes to sofvin& dbfferentWay5 of wortir¥tryetherill i￿1141 deknr stroryr results than a mwe hornc%erMJus aMem•tv. l)Jr annual report 011 the GeThler Pay Gap (issued in June 20221 ¢xKe rfain demonstrated our contsrvRd commitment to pav equity across gender. The report highlshied that cffi 5 Awil 2021 (the 8o¥ernmerfs-snapthot date" for t3pturin8the gender pay data of bjsinesses and charitsl. fAI% of the ernpwes were ferna￿. Thls distri￿￿On of gender 15 lar8ety r0ainta￿e￿ across poy4uartiles and &Jes notskewtrra(ds men as yw m¢ye upthe quartiles. We ¢ontinuÈ to recwrse that 8efvJer dVer￿ 15 a key 5trerW and need5 to start from the lop. In Wl 2021. our Senior Leadership Team cornprised 63% women. an increase of 6% ￿ the 2020 d3ts_ Ouv 2021 5ubmi5sth dèmonstTates a three- pÈrcÈntay poirt decrease in the RA'5 rnean h￿Tty pay uap from 7% in 1020 10 4% 2021 a￿1 OL¢r medk4n hwrty pay 83p remalr6 very 51i8htly p05itNe4f skewed towards We worrK)tea culture of 8eThler e4uality, iTr£ludini e￿OUragIng both flexlbk and a8ile Work)￿ and parent5 a ￿Ne[￿U$m31en￿ty and shared parental leave packo8e. We have continued the¥￿rk on race tquity indusK)n thatwe la￿Ched1¥$I￿•r. focusingon educatK)n and awarentssf OUTteams.accessto and proyeswon of careersthe Rdd￿erYty. ahd inclumon7lt￿.fft ourexhibition programme andlorour srtor experience. and WÉ launthed the RA'S first er ern￿￿￿e 8roup womotin8th¢ intere￿S of the R4's LG8TQ+ communllks. P38e- 16

The Royal Academy ofArts Trustee< Report Forthe year eryled 31 Aii8ust 2022 F￿ally. the RA cwtinues to Mainta￿ its commftmem as a Lpiin8 Wa8e EmF. ofteriw the LorKlon Lwing Wage for Èli8ib staff and en5wingthat Ihirdyrt¥or8anb5atK)n5 apeiatin8at the W pay staff on srte the L(th Wa8e 45 a minirnurn. RA Staff Counul lith eletted staff repreSen￿￿e$l mei stK tirres in the year to th"scuss • range of topics from pay eouity. to a8ile w¢yk￿& our apFxoach to equrty and and indusK)n and our work cffj suthiDability. After the Iw5t hjll year * are confident that the aims of this youp (to prryHJE a fovufn for upÈn tommunKation with mana8emenL er￿￿ra deb4te and ¥ffernew su8gestions lor wacticesl we bw8delwed. Esthtes Fxllllles The pandemic ￿ld a svdthant impart on the manogernent of the rethicted a£￿$$ to the slte over prolonged pedoos foT maintenance aThJ cem￿laThCe re¥iew5. The Eststs5 Ptsn ￿ thi5 year Set out to br￿8 the RA'S estate back to prtrpandemlc levels of mairtenafite and compliance aThJ ensure best pracvce wa5 aF4ied across our wider estates manayment yogramrne. Key pertcffioThce KYlicatry5 for C¢￿lanCe planned tYe¥entstive maintenance We￿ brought backuptoexpeded levelso¥erthefinaKrd1￿afJnd all pC41c￿ h4vebeenupdatd. InadditHJn. bÈ$tpract￿es were reinforced across the RA'5 aPPY¢)ath to Health a￿1 Safety.. the Health and Salety c(￿fflee was r￿tsed," and all itern5 in the Fife Risk Assessmentha¥e eitherbeen c￿lF4ettd or w￿l￿ded ￿ ryjrtawtal programme. Capbtsl pl￿e￿5. AA SthoLI5 Proiert The RA 5chty)Is Project ha5progressed s￿nif￿a￿ duringtheyear. In earfy 2022.the studentworkslh)ps in Bur1kn¢t￿ Garder were £oTrWeted on woKramff and ￿ budgetA Plannin8ApPITht￿ èrKI Lisied Buildirvd Consent lor Ourlindton Houseworks was submitted In Wnter 2021 and the RA entered 4 Pre<on5trurtwJn serv￿￿$ Ayeement in 2022 ahead of the ￿rI￿StOn use main with the same contractcKtho Cornp￿d thewryks in Burlirfton GaTdÈns lkn¥ht Harwoodl. We have also dvanced our Wstical and operatwl preparations for the maill phaseof w)Fk. The C(4Sethon of casts and sculpture based at thÈ BA Scheds was mcfftd io off-￿Ie storage cNer Easter 2022 and wil refflain th￿￿ untrl coThstfuttion is corn￿ete. We have designed aThJ iendered iempL¥aiystudios fly the student5, tobe budton site ￿ thE Jdlian and Arthur M. 5acklerWin8 of Gallerie5 and the space Icrfmerly rK£upied by Pace Galery oft￿ 8rWr￿ fioorof 6 Ouwlifwon Garderts. and to be occupied durim8eonstnKtb)n. The mèln w40rks in 8urfwn Hw5e to 5tsrtin l•tr 2022. Th¢ FiA has taken several steps to mir¥mise ewgy c(￿UMPtIon and carbw em￿•c￿5. The or8anisation 15 pDwered by IW% renewable ener8y 50UTce5. The RA'S Èxhibiknons are inueasfjn81¥ bein8 dey£ned ilh an ￿ on su5tsinability. We hove mtsved from paper.ba5ed todtgital dorurnentmana8ernent. WEarE comrnittedto reduant￿rCathn f￿tprint￿theo rt comes tothe and build for exhkn.ons by enga8￿￿ with 30 ar0 2D deg8ner5 in discussions about the use of mLe sustainable materials such us reC￿a￿t pakrs and eto.fwieThJhf inks fcrf our iThterpretskn materials and recyckible productsforour fret standing walls and 01spLIy G75es. We havealso been consistendy reu&n8 free Standi￿ plinths. and display cases for our exhi￿tiOns. We consolidate shipmenis and reduce the nvrnber of loans a5 fflLKh a5 PD55ible to reduce our £artr)n fwlprint. We request the use of existiNg uates and bjrtlebox uates in all Our transp( tender5 to redvce w•5tag. WÈ reuse packingmatsrials. 5uth a5 polythene ￿4P and use more sustainable materials where F4)s￿ble. The RA 15 tommitted to feducin8 the eMronnntal inwart ofits actNits ar￿ ￿ wgavA5atw Iiitends tr rentr￿ its efforts in thi5 area in the nextfinancial year. In with SI￿arn11ned Eneroya￿ Cathn Reportin8 ISECRI requirements. the RA repwte41 s total emissions forthe year as 1.475.73 tC02e12021.. 1.720.48 tC02el. The largest pr¢Jportth of the RA'S Greenhouse Gas IGHGI emissionswasac£ounted fcw bythe e￿￿￿ConsurThed irb Interrwl area5 V&itlM'Th its corrTrmtrtial3nd academic bJildln8s. vknich represents $3.89% 12021". 51.91%) of tot￿ emtssk)ns, equatin8 to 795.72 ￿02e 12021.. 891.45 tC02el. TIM5 dat• dernonsirates a 14%redurtim in carbon ¢rni55ion5 acr055thE estate and ts laT8ely acctyjnted for dueio LEO Ll¢hb"r8uwrades ttrwoughoutihe bj1hli￿S.' a rethjced ex￿"bItIOn prcqramme: and Sumrner Exhibthrts sthedultd in ytai. A5 reported last yeaT. bad February 2020 the BA Undertr￿ a finarKial 5ustsinability re￿ew. Thi5 wa5 ifrfoTined by actual fmancial Ferforrnance in 2018119. first full finantial year in whh the PA had cyernted its newAy expanded campys. The reviewhighli8htedthattheuganisatiM needed 5vanific￿tch4nIe5eVen beknthe ￿set0fthec(Wk￿-19 pand7K kncludi ytar-dn-year tostSav￿￿. to ensure a robust finarKialtysu5tsinable weratir¥ Tr)del. Wllh the Impact ofthe pandemlc. the sI￿ati￿ ofthe AAdetwiorated further. Thi5 was dEsplte BovÈmment sur in the form of the Coronaviru5 Jdy RetentK)n Sthme aThJ 8enerous dLwtK￿s to the RA'5 Coronavsrus Effertency SuppNt Fund. The BA hès underta*en striryent cost-cutbrg mea5ure5. Includi￿ ah ￿an1$atiOnal restructure the deferral ol all fion-tTitical capital expenditu￿ pr(¥eas that has helped mityte the irnp¥t over the iasl two arKI * half ￿ar$. P•8È.' 17

The Royal Academy ofArts TfUStees' Report For the year ended 31 Au8USt 2022 As de51ribed in more detsil FinarKial Review 5edi¢)n bekm. the PAIS réporfj￿ a ¥eryposrtfve Set of fir￿￿111 results f( thi5 yew. Hovtr. cons￿erable finana& challeree5 fer￿ The RA has ben￿rrt￿ year fvom eXCept￿al sitiJatKMI of hwngfy4x> knmer ExhibitiLVJS (with the Summer Exhibttion 2021 teiw deferred to A￿￿rnn 2021 due to the pandtmicl acctyJntiTr8 Si￿•￿￿an1 additional contribution over ènd abrwe 'normal yeart. The PAhas akncyrated with a Wrcost ba5eftAIowirtherestructuri￿ with less acti¥itythisyearand has nothad thehjll irnpactofLwÈratin8cost fftllakn.on and salary increases. irKludin8tlE rise kn enEr8YcoS￿ asfixed tariff contracts were in place until the end of Septernber 2022. The inwd of cost inftation an(1 salary ir4creases VAII have a rnaterial impact on our c05t base for the next financial year and mediurn temi. HtrYÈver. the p￿t￿e financial performancè this year means that WÉ are in a far better funding po&kn"on than planned. 4tsith healthy unTe5thcted oFeratsn8 cash reseryes of £6.4m. We are also not ytili5w48 our Re¥okfiW Credit Fati%ties e c(ivnitted 10 31 August 2025. which do however reducE to £5.Ll)) durfTrg 2023. This %%fi pmwde a w￿lcOrre hnarKial bufftr over the next Coup￿ of financkil yeaTS, which are l¢dyto be challen￿r. Dur Iwrating tr¥Jdyi kn the ￿xI finanoal year rellerts verydrfficult fihancial positkn the RA ntyv hnd5 Itself in. The RA f￿e$ the thalle￿ ol It(￿1￿( back aUdIe￿e$. are siill rnuth than befofe the pandemic, with the prospeaive impact ol the "cost of INirq cri515- Pfo¥idinB a furtkr hÈadryThJ to Ir￿asire vBitor numbers. Thi5 is &8ain5t a backdrop of increasiTr8 ctssts. with a substsntwl inuease in erergy taiiffs fwa5t Irom the end of September 2022 Iwhw Iwr three year fixed toriff •8reemÈnts expired): salary increases 5eoember 2022 Ifollowir¥ an extendEd period of fveezln8 RA wide annual salary irKreasesl: ￿00￿er ir%nation.' and a srnall irKrease in artmity and stafF numljers. We are bud8etin8 a stinrficant headline loss for the nert fin¥ial year elen ￿th 5UPPryt of a E2.Om &)ation from the Royal Academy Trust Ipledged back In Novefflber 20221 fOreme￿enCySup￿tIOrthe parJem Based on t￿rent prolect4ons. compared to prtrparylemK lee15. the FIA ￿ f&d wlth a matertal redurt•)Th in inctsme from exhibitionadmis#on and0ther￿-S1tesour¢e$oIi￿o￿fWa1Ie4$tr￿ nextt¥)tothreeyears, tceetherwith a srnallerannual donation from The Fr￿ndS of the Royal Acaderny. suth that there is an expectaton that rt wll takE e¥n I0￿er to return to preC¢)vi0.19 knls of income al￿ achiE¥e su5tsinoble annual nÈtincLNne frc•n xtwities target of £5.Ckn Ibefwe interest. depreciatK)n. and amortisationl. IMPACT AND PU8UC8E14EF A5 a-Fbme for a¢ a￿$15 afyj architects" the Royal Academy Ik)5 a5 its four¥Jin8 ft￿$$10n io-w)rk toRether to promote the arts of design,. and educate the in creatth, eThI￿rnent and understsnding of the 4rt5throu8h eXhI￿tion, education and debate." TNS mi551on hdds true untyl tadayand forward the K41s(oMmrt￿ tO£￿ti￿1r¥ to on thi% missien. As an IndepeThJent institution. the RA has a ￿TrPr0￿￿ed Boal.. to ddNer on 115 mis5#)n. whi15t at Same time securin8 the financibl 5UStainabilrty re4ulred to ensure its fiJture_ The RA faced unprecedthted d￿l￿nIeS in tem15 of the operional and rinarKiJl impact of the panderrbic and the oryanisatsn was 1￿Ce￿ to reassess its prwtE5 and reinforce ils focus on the core piknciples and ￿ti￿lieS whith have 8uided the RA it5 ireptiorn Ths 2021-25 was desqned to 8uide the PA durin8 the pandtrnit and its Immediate afternvth. It is to be superseded by a strate8ythat W￿11 be approved later in 2022. The Cry• RA ba%ed w theVtslon20ZA.25 Thecore constituent part5 of thE FiAarethe MembershipoltheR￿aIACadeMir14nS.t￿ RAho(As.theexhlbitknns pro8ramme lintluding the 5tsmmer Cdlection. and leafflinB. The respe£tNe strewh and unK4ue quafrty of Èach of t￿$¢ aspert5. and their tem&'naiiLy) urth r()1￿ the RA a unwjue chararterthat is notsharod byany other institutiw in the rld. emembership The PA v4as ftyjnded by a 8roup of preoffAnent artists ?rKf ardMteEts. To this day the Academy Is led by its Mernbership, • group of nattonally and internati¢)nally renrY•med artssts and arthitects. dected by their petrs aThl appointed for lile. They are inv0lvedinle￿in¢lheRAlhr0lt8hrt91opMOstErnErn￿iK￿,th(•￿￿ll.aS￿e1I35theGener•1155ern￿Vand itscommittees. They •re the lifetAood of the kademy. TreRA Srhoo15 The orfwnal impetus for setting up Royal Academy of kn was to wolessNywltse the trair4ng of young artlsts in an art school muth likÈ had been happoninielse%%theTe in Eurcy. Tcrtlay it is 4 ￿ee-￿ar post-graduate pro8ramme for 15 students per year. The KiSchiK45, led b¥the Keepef ar¥J thÈ Curator tirertor of the RA SclKx)15. i5con5idered a5 ¢)ne of the leadlr art schoL4s in the UK and attractsa wJe range of Evrcyean students. ¢)uring 5urnmer 2021, the RA Schcds embarked Up(￿ the fif5t phase of works for a swfficant restoratKin and renewal of the RA Schools. The expected c05t of the woiÈrt ha5 i￿reased wffic3Trtly dur1￿ the past year. primariNf due to Inflatkn. such PaEe.' 18

The Royal A¢ademy of Arts Tntstse< Report For the yw ended 31 Awt 2022 that the totsl projert budget of £22.cth approved by cots￿1 In 14(Nember 2022 was £4.2m hi8her than £17.8m bud8et approved by Coundl in Aprll 2021. Tho work ha5 been SF4it two phases- the first ueated new workshop space5 In 6 Jdin8ton Gardens, whkh Came into Use earfy in 2022. and the Sec￿1 more y8nifKamt ph5t will refurbish the 8urlln8tth) knjse 5th olthe RA from late 2022 to eady 2024. The exhibitions prugrtsmme When the RA was founded, its fflernbef5 established exh￿1￿￿ a ts¥trfold alm". for the Royal Acadernicians to displtyand sell thrworks aThJ togervate incometofinarKethe RA Schaols. ThiStraditiohtr￿llTh￿esw￿th thaM￿lsUmmer Exhtbition that has been held ￿thtyJt interrup￿1￿ the RA'S Ir￿ePts.￿. Be$￿e5 th¢ anmal Summer Emhrbltlon. AA r¥￿ runs a WIde-ra￿l￿ arnbitlous, I￿1 fnyth Tesperted pro8¢amme of internatlwal loan exhitmtions on art arKI arthitecbJre. Of these, are hdd in the Maln Galleries, one of the grandest iemporary exhibition spatts in the UL rf rKt in the world. Tht spaces are The Jlh'an and Arthur M. Sxkler WITh oIGaIkf￿s and the Gabrrd1￿J￿e1S-Wlnk1er Galler*> The Collection The unique and C(4le£tion was stated as a leachin¢ colkntion for the RA S(￿45. From the bewnning the Academy also required every Acadefflician to d(ThtÈ a"diWoma work- to the ColSertw)n. c￿er time the Cc41ectioD has grown into a visual record of the RA'S mernbefship and histcry. Valuawe in CollErtK)N range from Miihelangelts's Taddei Tondo. John ConstalAe's leuping Hwse and George S￿bb$.$ •￿tom1(al drawngs stud￿$ of horse. to diploma works by1wi￿arti$ts suth a5 Lubaina HirnKI ￿arKI Tiatey Ernin PA TheC￿￿(ti￿ alsocontains historic ccyies after Leonardo'sL05t Supper and Raphael's cartoons for the Chapel. Trre 15 a c¢)nyderablt colkniLVb of plaster tasts after lamtrjs works ol art, a Sileab￿ c￿ed￿ plant wradts and gallery urbishment proyamme5.' to repay its bOrr￿n¢$ and to serwce its fIna￿n￿¢05ts." a￿j to maintsin a level of free reserve5, as outlined in the reserves policy ¢)n pa8t 22. This finantial sustainability tsr8et has been SeVere￿chaI1efi￿d by the impart of pandemit, %%thich is cul￿dered hjrther in the Strateyc Repryt bel￿. * gNen current macro4conomit sltuation, as conydered fUrt￿r on pa8e 24 in"Principal risks aTrJ Jncertainties and ma￿1emen￿ wll continue to be thaller4ged ovei the ccffi1n8fi￿r￿V￿l year •ryl bey￿d. Ak)wide thefinaKfjal ￿•1 to ad¥tst W5tainoblity RA has•jentI￿ a set tyfmission re￿ted10ats. The RA tracks rnmit¢vs a variety of irwt measures las distirwwshed frcth Key Perforrnance which are considered separatety in the Strategx Resmyt below). These indudo th¢he pertainine to the RA'S actmtses across exhibitia115, Schools. Colecrh)ns, aThY education." where [￿ble, we aimto rne45ure the del￿try¢fOUr mlssitin and ￿part0￿19￿￿{mIIClMY, as ￿1 as qualitative￿and a￿Cd￿th. Tht current measures will evd¥e as better uThJer5tands ffleasure5 aTe rnort reliable and informative. d a5 it iThtroduces new of and assesyry the imw r( has bui will rth¥ also ha¥e to be furtlwconsKlered in li¢hi olv4hat is posSi￿e for the organi5ati(xb wven the finantial constraints due to the effett of the pandemK. Page.. 19

The Royal Academy of Arts Tntstees. Report For the year ended 31 August 2022 The exhibitK)n priy4ramme pi(wrdes a of subpct nNatterand conleThtfora rany of pu￿￿£ tsstes aThJ is complernenled by • pro¢ramme of actiwties suth a5 lertUfe5. and amed ai prtr4¥I1Dg opptxtunities for the publc to e￿age with the subject matter and the insEiiub"on_ The RA'5 exhitrtionand putAiE pro8Yamme conbNe io measltrre SLKce55Jnd impacl both in terms of the ryerall attendarte or reach aCti￿tieS a(h￿ve as tll as the de8TÈe to wlNch the IIA ts able to kome new audiences whomight othervjiseface baTrier5 to attendin& The Royal Academvs priciThgpoliry indyde5 Op￿)rtunItieSfOrthOse k)WeT incons to ¥i%t the Royal Academy partKipate ￿ its pro8Tammes by takn8 advantale of reduced ticket pritÈs and free Ktivibe5. Vrious cksuies io the publk durin8 the p￿deMiC presented thalws to the RA in delivering its publit nefit. However. throu8lwut thi's s)ervA the IiA weased its f(us ￿ dityal to keep en8a8ed and support its mission despite ck)5ure. In impkmenting 5tsted I￿lertNeS the strawies deKdbed, the twstee5 (1￿mI t￿t they comp￿￿7th their duty to have Tegard to the CharityCc•Y¥missw lu￿ance benEfft. 5TRATE&C REK)RT Buslness reblew The"Strategk re¥levf 5ertion 4bo¥e sets out the FiA's in thfjs wea cwer the ￿5t year or 50, a5 as its Vision for 2021-25. A rewÈw of the Royal Ac•Jemls ￿tI￿tIes. a[h￿eMents. and has been included in the -ktivitiÈs. achievements and imparf xtction. also akne. The ¥uture plans- sec1h￿ of thi5 IÈWL whi£h follows, sets out in further detsii tyJrstr￿e￿f0fthe rwtfive yw 5ustahiability reiiiew A5 noted in the review of artivSlS ab￿. ITr paraNel wrth the withrstrale8it revfjewln the peri(tyY to Febru￿ 2020, a financ￿1 SUStainability review was undÈrtakn infcmied by the actual financial perforrnarKe in 2018119. the first full finandal year in whkhthe FL4operated itsexparwled c4rnpu5. TINS rÈ¥iewhi8htighted svdnificant organi5ali¢)nal chan8e5werE needpd, includin8 the delNery of year-On-￿ar cost to ensure a Tobust afid financially suslaiDab￿ oFerating rn¢xld. This T￿eW also identified 3 Series of keYfina￿al metrics l¥￿id1￿ a benthffl ￿WardS ￿th￿￿1n8 sustainablmty. During the CoviO- 19global pandemic and rvo¥ery wiod are Th￿￿Tr.these metrics cannot Teasormbty be rnea5UfEd or delwered against in the short lerrn bjt wll WLwide a usefvl frame%￿rk as PA establi5￿5 tls post CrNi&19-new normal". Se¥er•l of these key fir4ncial rnetrxs are induded ￿ thÈ key Perforn￿ ￿d￿alOr$be￿. Kry perfWmaM￿ The following key perforrn1￿È iThlKators I￿￿$"? ha¥ been hkntihed as kry mÈasures of our prcyess a8ainst OW 5trate8k obfrertfves. Tarlets for overall audience fures and KPIS W4ryth direct finarKial impact le.B.. Friends mefflbefship numbers) are ernbedded inio our Medium Term p￿n. whKh 15 updated annualy and reflert the finarKk11 sustsinability metrics Teferenced above and in & "Financial sustswbilrf below. Targets for qualifative measures le.i.. visltor experfe1￿, audlen dlversityl contlnue to be refined on an basi ExNbltlthis Number of exhibibon and iderumpus ￿sItOrS Critical receptlon of exhibitiry NyfflbÈr of exhibitions realised Audbence and Exwrien SecoThYary spend pervi5ittr Irttall and catw1￿ Spe￿ tradeI¥h)k54￿•￿efft￿ry wKome Visitor experierKe Iratiry of exhib￿￿￿ aNI of overall En8agemont and ntsmber of dwtal ￿￿torS lunhiue ￿sitti￿ websits ￿510￿4 xKial rnedla following) Callertlonsand Learni Impaci and reath oflearniry prwme 0Th5itel AUdIen￿ forCc41ectws (ph￿"(al displays. website app0￿Mients1 Ran8e and type ol new (dlecDon arqui5ltlL￿ aThl suttsssful care and Mana8￿nI of all Collectl RASchods Numberof RA Schods applirations place from otstslle lond￿lUvEUT0pe) Page.. 20

The Royal Academy of Arts Trustee5' Report For the year ended 31 Au8u5t 2022 De¥elopmont Fundraisioq ROI. rawl & P•opl• Stsff en8a8ement lenKa8emem5w%y. apprais¥ sLiff turnG¥erl E5t•tes-mil¢YproJe£lS (￿npletI￿n ot Praied. thÈ PA SLhrds ￿e￿all0Th fenewal propu on proKraff4ne and bud￿1 nancfjal sustalnabllty Tar8et to athieve Sustslnable ￿ In(Off￿ from xti¥tties1befo￿ interesL deprerlatio￿ and amryt15atk)nl of at loast £S.(n annum In 5UPPOrting this £5.Orntarget. cNer411 net contributionfftet￿f0rÈXhIbrtthS lindudh)iadmission and sponsoyshlp Income and exhibition costs): rnemtership sthemes IPatron5. Corporate, Ac4demiciark%' Rownl lindudin8 kn5 and eventsl. annual donK)n from The Friends of the Rwal Ac•Jemy. tl Tt (orrtn￿¢hJn from ret¥l pvbli5hingp and broader commucial trJdirqa¢trit Staff cost5 as a percenty of Ir￿￿ as percentw of tthal sbff and opefathywsts En￿¢0￿￿￿ental susiah)abl4ty Energy tffisumptmand Green HtyJse Gas IGHGI emrsspx 10. Equlty. dS¥eth. énd Irththk L¥versity profile within eath stsehohJer rfr￿p (audience, stsff.Academician5. sluderbts. trustees. ¥li5ts. 5pe•kersl FINANOAL Flnand•l re5uII forthev The results for the current year sh)w net irKwe of £S.Im12021'. ￿t eynditure cl £LP4nl for t¢È attw￿￿$. being those ongoin8 attMtiEs dlrectly associated deliverlng the charitsble obiecty%s. ar￿ net 01 £5.(kn12021.. E7.9ml forthe 4rfin8ton Proiert. knng the refurbi5hrnent arKI redeveloprnent of the Royal Academyls buildi￿S and estate. Net Income of £5.Im 12021.. net expenditure of £1.8ml crye Ir￿￿deS £0.4m12021.. EO.Srnl of iNterest pIya￿e.. EO.C¥n 12021.. £O.Qml of interest rece￿able.. aThJ £O.Im of i04stmerf losses12021.. £0.Im of irNestrnent gainsl- There was net inctxne ot £5.6m12021.' nEt expenditure El.5rn1 exdudiw net intETe5t payable and inNstment losseslyins. TO￿ net rnovement in furK15. includes thE r￿￿r￿lI￿ ol the acti￿al b)ss on the pen￿c￿ stheme totalllw £2.4m12021'. 8airb of £1.9ml,andatsx credrtof £0.4rn12021:£Qlrnl in respertof Musethi andGalknÈsTax Relief. resul￿￿¢￿ a surplusof £8.( IZ021.. £8.Iml. The ￿￿1n1 actMUes surphjs. eydLxlirq rt ￿terest payable ￿￿EStyneThI galns £%fAh12021.. defl¢h El.5ml. These results are S￿nIf￿an1￿ up on those of the pr￿tyj$ year. With an irrease of £7.Im. 80th year5 have benefited frun incorne from d￿atJon$ to the Coronavirys Ernef8enry ￿pport Fund I"CESF"l of EO.2m 12021." £0.8ml. as ll as legacy Income desl8nated to theCESF ol É0.2m12021.. £0.8inl.' and grant ir￿ of £O.1rn12021.. £2.5ml the Governmenvs CoTonavirus Job RetentiL>n Scheme I"CJR5-1. txcludirythe impart dI￿SeItem$.￿ Su￿U5 ¥wuldha¥e been £5.Im12021.. delKit of £5.7m £4.Oml: on inuease in surplus of £10.8m. HtswÈver. the pric¥yeexp￿dl1Ure did also indude the costofthe restrurtufin& ITh response tothe ￿Th￿eMk. of £2.2m1£2.(kn nrtof a retharge madeto Friendsofthe Royal Academyl. ThSs yearfs resultsberfited S8n1fKanltyfrwt￿ excepty.0￿1 ytutth 011￿1n8 1I5ummerEx￿bIttL¥)S inonehnancial year, tht￿ SummerExknbitlon 2021 b"wdefer￿toAut￿rnrn 2021 due tothe p0￿mI¢. Oespite.thEemeryerKe ofthe OmKro variant the government measures in plxe to ccthbai th￿. Mthich reduced visitor numbers tt7VArds the end ol tt eXh￿b￿On'S in late 2021 and earty 2022. the exhibitKXl Still 8eriated 3 swwfitant contribution. includin8 from the commission earned frcm arts sales. The ￿n¥￿er Exht4ttm 2022 bark in its Th)rrnal syrnrner 5bt perforrned extremely wel, bein8the first Main Galkry exh￿[bon to see ￿Sitor numbers at a I￿1 similar to th)se experienced bef￿ pandernic ar dolng equally a5 well as ￿MMer Exhib￿On 2021 in irts sa￿$ c(thmissi(¥k The othoT Main Galery exh￿itIon Froncis Bacon." Mon ¢)nd Beosc whth ran from late January 2022 to n￿d-￿"12022, a150 peflrywned well ahead tsf plan all1￿￿1h ￿Sit￿r nunthers were around 15% lo%%r Ehan might VAfrted befwe the pandernic. the re5truduring in 2021. t Royal Acaderny continued to operate ¥￿th a loww iosi base and whilst there was scffje thmpact of inflatKJn on both staff and cyeratiTrg costs. thi5 Will be fai rnrye keenty lett in the next finanllal year. This is Parti￿larlY tn*e of ener¢y costs. for vlhith three year fixed tarrff contracts explred at the eTrY of Septernber 2022, and for whKth rnuch hiiher tartff5 are knecast in the 5hwt to medium terni noh%iihstsThlin8the 80verN￿t SUPWt prrr•thd tothe end of March 2021 Pw.. 21

The Royal Academy of Arts Trustee< Report Forthe year ended 31 All￿St 2022 Total irKcrfne from ongoing actb¥it￿% lor the curtert yEar was 32.7% up on prevws year at E38.2m12021.. £28.8ml, eXpndlt￿e lexdudSnginte￿$t payable) irKrea5ingby 7.4%overthÈ same to£32.kn12021.. £30.3rn1. Excludlni income from the CESF ar￿ URS. total incw¢e was $3.2% up prevwws year at £37.8m 12021.. £24.6rn1. The prewous year expenditwe iocludes É2.0rn re5tnKturing costs. a5 WEII as an exwiional prty4isw for dirninutK>n in value of an Investment pri)perty of £0.7m.' excludinE these. exp￿lt￿e increased by 18.0% toE32.6m12021.. £27.6rn1- The F[￿ndS olthe Royal Academy. a separate re8thred charity, d(￿ed £ll.Im12021.. £10.4rn1 tot￿ Royal Arademy. 6.2% higher than the pre￿u$ year. but also donated a fOrt￿r £O.1rn12021.. £0.7ml of legacy irome towards the CESF. Th￿ total dmaticffj of £11.2m12021.. £11.Iml reFrnerrted 29%12021: ofthe 8A'stotslincome fvorn orwingattiwt EXNblt￿ln Sncome ￿TeaSed by 174.S%to £8.6M12￿l.. £3.Iml. There was an 89.2% increase in inEornE frL¥n Our tfadin8 subshliaries to £9.4rn 12021.. £5.Ihl. Iwm ccmmeraal artN1t￿S of E&3m was 52.8% up12021.. £4.Iml. Mth incorne from entÈrtainini seNcesio the cryporote sector 137.5% vp at £2.Om12021.. £0.8Anl and income from tKeted fundra¢5iw events ol£Llrn £l.Om up12021.. £0.Iml. Other incorne irKluding sp£wtsorship * E2.9m was 36.1% up1202L: £2.Iml: Mth ¢)ther donaiiofts at £3.8m. 6.1% up12021.. £3.6ml. including £0.2m emergenry fundraisi￿1202I.. £0.8ml. Grant Income at El.lrn was 60.6% down11021.. £2.8ml. Th¢5 included £O.Im from CJRS120ZI.. £2_Sml." exdudiry thi4 yant Ir￿Me w35 £0.8m h.zher due prirnarity to the lust under £l.Om received fTom Woomber8for dilfjial infrastructure de¥elW￿L The irKrease in expenditure ifluded 3 14.3% decfease in staff costs to £12.4m 12021.. £14.5ml, with average fvlktirne e4uNalent permanent eMpki￿e5 dECrea￿ll￿ to 269 12021.. 2841. with the restTWturiTh% c(ry￿ted in January 2021 impacting the pre￿0￿$ year in part. Staff costs in previous yearalso indLMle £1.9m ol thetotsl £2.Om re5truElYri￿ costs. Other expenditure leAduding thprttiation a￿1 arThyli5atyil has inuea5Èd by 3&6% to £1&5rn 12021.. Ell.9ml. primari lefkcti￿ an irKre45e in dirert exhi￿1￿￿ cosis and retail cost of sale5. ￿th opeTating costs ￿$0 irthasing 51iKhtty fdlowtng the Cost savings SnitwtNes in the preMous Yeard￿ to the pandemic. Deprec41tiw and arnorb5ation thar8es were down 6.8% at £3.6m12021.. E3.9ml-the comparatNety h￿h chw refiectinBthEAclemrfs recent In¥estment in both the pl•nt UP8rade and galleryrefurbi5hmtntproyamme and systems le¢hnd￿. as￿11 a5the assets brought into seryice primarllyin 2018wth completion of Phase l of ￿ BuAin8ton Propct. The Royal Academy put in place a five year E5.(n commttted ma￿e￿lan R￿&InK￿edit Faality I"Maskfplan Rcfl in May 2017 to provide the required cawtsl fw the (rThp￿]0th of the 8url1ret￿} Project, as redevek)pmEnl costs were IrKurred inadvance ofthe Teceiptof ￿edged donations and t0fv￿1 the final cost (Ple￿u￿S0n theprojett. The facilityhas since bEen extended th the £S.Orn cornrnitment running to June 2023 and thereafter redYcw￿ to a £3.5m tommitment to 31 August 2025, whith can be dfawn dowm in thance5 wrth a mininwn value of £O.Sm. Eth athènce 15 repayable after one month. at the end of the ont.month pericoj the adwance can eit￿[ be rdled over for arther one.month period or repaid. th the amount then beiw availaNe agaiTh lor draw d¢Mm. This £5.1kn lacility was not dravm dovm atthÈ year eThJ. with the £3.7m drawnotthÈerMiofthe prevityJsfinancial yearrepartl in september2021.￿ extension ofthe £3.5mfacilitytLJ31Au8USi 2027 has beenapproved. facilityayeement dueto be early 2023. The Royal Academy put in plxe a fwe year £2.5m comff4tted Operatir4g ReV0hi￿ Credit Fadlity l-operating RCF") in Marth 2018 to mana8e operatin& c3piial requirements. The faolity has since been extendEd with the £2.Sm commiiment rvnnin8 to Febfuary 2023 and thereaftw reducing to a £1.5ffl comrntiment to 31 Aueust 2025. can be dra￿ d¢)wn In advantts wf(h a rninimum value of £0.15m. Each afvance is repayable after month,. at the end of the one-rnonth peri¢)d the adVa￿e can dther be rc41ed over for another0￿mOnth period or repaid. with the arrK)unt theTr beirN¥ available agaln for draw down. Thi5 facillty was flot drawm at the erMI. An txtensthi of the £1.5m faciltyto 31 Au8U5t 2027 has been approved. wth the tstilityaireemtnt due to be ￿r￿d in early 202> The Royal kademy has benefited S¢Thfic•froM￿ introdLKtianofthe MuseumsafyJGallerles Ta% relieffrom IApril 2017. providing much needed finartial support to the eNh"bition5 and free display proyamrnE amounting ro about £0.4rn each year trj date. althou¢h this reduced to ￿5$ £0.2m last year withthe impatt of cancellirqexhibitw)Ths due io the pandemic. The announcement ￿$t¥eaT of the e¥tefis￿n olthis ￿1f vntil at lea5131 March 2024 and irtrease in the rate of relief with effert from 27 October 2021 was much ￿lCOmed. The poliryof the Royal Acadeffryfjstoma￿tsln a 5ufWltsTI of ffft Te5er¥eStOenab￿0pera1•WoctNIt￿sto bemaintai￿d. tsklry account of kx)tentio1 risks and {￿tir￿ncSthat mayarise frorn lime totime. A forrnal reser¥eswas or¥Ysolht a¥reed at the meetwvdof C￿0￿1 on 4 Ortober 2011 appr¢hd amuallythereafterthch stste5: PaJJe'. 22

The Royal Academy of Arts Trusterf Report Forthe year ended 31 August 2022 The trnstees have set a reseNes polKy reqwres: Reser%sto be maknialned at a ensures th the ￿31 Academ￿5 ￿e artivlbe5 wuld wntlnue durin8 a period of urrfore5een diffKulty arxlthat Cufrent and fv￿re Commitments ￿ be kn￿ured. A proportyon of reservÈsto be m•intained in a ￿adIlY realisabbèfomi. The poliry 15 re¥￿Wed anrwalty bycwrtil. FreE re5er¥es comprise that part of the total unrestrirted that are freely a¥aihble. fr￿ the most recent rewew. the trustees ha¥t adopted a risk.based apN￿h to detemiine an apwo￿ate knel of free reser￿ The trustees consider it appropriate tohavefree re5eNe5 Sthcient toroveTa period of ufiforÈseen diffKulh'es and £￿S￿ler this to the greater of a period of three months. belN4 the wmal dufthn of a main oallery exlitsticffj. suth that this wwkl ollow the Royol Academv tocontinue wnnirvl irtthe cirtum5tarKÈ5 thatan Exhibttion is cancelbod wTth2044: the pension scheme asset of £&4m. In addltion tothe net current assetsof £5.kn as at 31 August 2022. the Rffjfal Academy has occes5 to a ES.(kn Masterptan RCF lthÈ latilty tommthent reduces 10 £3.5m from June 2023 w 31 August 20Z51 aThJ a committed £2.5rn Operatin8 RCF to February 2023 {reduci￿ to £l.Sm from March 2023 to 31 Au8usi 20251 atyj an annualhf rerwable É0.5m o%rdraft faolitv, none ol were dravjn upon at the year el￿. A two ￿aT eMten5ion to 31 Au8USt 2027 hJ5 been approved for both the Mastttplan and 0￿rating RCF. In November 2020. the Royèl AcademyTrustpled8ed a £2.(kn tothe Royal kadery, vthith rnay be dT4wn down over the perkxl to 31 Aulust Z023 as erner8er￿ SUP￿ fundin8tonNtfj8ats the imw ofCo¥KI-19. This pwe had Tr)t been called upw at the year end b￿t￿lI1 be dra￿ in 2023. InwewofthelE¥el olcurreNtl•iubJ resourte4luhWe pW&wiionsandthel￿teMl loanfvjnd1￿8Th1 shcttemiladllties place, whKh are all avalk￿e lor operatirywl purp05e5. trustees (ty￿￿1er tfv4t the Rffjfal Academy ha5 both suffirient fundini and hqui¢lity fortt foreseeable future. As ouEllned above. in paralkl wth the wider strate re¥￿# in the period to February 2020. a financial sustaI￿billty review was Undertaken inFO￿ed by the actual fina￿&01 perforvnarfe in 2018119. thÈ fiwstlull financial year in hh the RA operated its empanded campus. Part of the scope ofthis rwew wa5 to identyfy a serie5 of key m¢trK5 prov1d1￿ a benthmark t(Mards achie￿n8 financial sustaSnat4"lity. wh.ch indtyJeLI de￿er1￿ required k¥el of surplus fvnds to achieve the tsr8et level of free reserves over the kHY term Ibtini a period of to S￿en yearsl. io the impart of the pandemic at)d the broadermacr04cor￿IC situation thathasftAlo4Ed.thpse metrir5 •reUr￿lketytobethl￿eled a8ainstfof an eXter￿d pefiod. d the perKMJ to ihe tsryet leyd olfree re5er¥es inevitawybe Page.. 23

The Royal Acad￿ of Arts T￿￿ee￿ Report Foi the year ended 31 Au8ysI 2022 The trustees atso take comfort from fad that the Royal AcademyTrusL an independent chority estsbli5hed under a Trust Deed dated 11 February 1981 specffical￿t0p￿oVth supffi tothe Rryal Academy. held fvnds 01£53.Im at 31Au8u5t 2022 in trust for the Royal kademy, of whth £18.3m represents ￿restr￿le￿ funds, irKludin8 Ell.9rn that is both urwestricted and not desi8n3ted. A further £21.2m represents permanent endowrneni funds. wthich are accounttd for on a total returfi ba51S Isuch that both income tapitsl appreciatKffi may be d&strilxJtedl. with tht rÈmainlng £13.&n bTrg restricted funds lincluding £0.9m May be used for tht 8eneTal purposes of ihe Royal Academyl. These ￿n￿nIS are held by the Royal Academy Twust until these are required by the Royal Ac•Jemy for 5pecrf¢t purposes a￿ in¥ested by the ftoyal Atademv Trust to pro¥ide future fundin8 for the Royal Academy. A5 noted above, in November 2020the Royal Academy Trust made a pledge of E2.Lkn). whith rnay be doml over the period to 31 Au8USt 2023a5 ernergen¢ysupport fvndiw to mrtwte the finar￿131 impatt ol CovKI.19 whKh be drawm in 2023 from these fu￿. FIITURE PLANS Ckn prioritie5 fortheye￿tocQrnt Like manyor8aThisation5. tht Royal ￿ademy. stnfftsd to arti￿￿te a lryterffl stratttrthrough the pèndemlc years of2020- 2021. HrMe¥er. in early 2022, (wni5atith) stsrted WO￿ on definin8 ils StrategK arnkn"tK)n and roadmap for the five year period to 2027. This strate8y remains in dvdelos￿¢nt and will bE fowmally approved and adopted by CoUrK￿l￿1er in 2022. HOWe￿r. the plan Mll reir4fofce the Iltyal Academrfs founding mission and adapt to its chan#in8en¥ironment byfocu5in8011 three main obJectNes'. The Academy exists to Inspire 4nd develop artistic prattice at all itrels of erhga8ernent (htrthe next fve year perlod, we alm to reififDrce our rewtation proposition a5 an-acadernf - a place f0rexp1cat￿ KIe0t￿ and a lÈadin8 advocate for the importsnce Of tht prC￿$S and ans edvcaty.on Iwe Spect￿31￿. As an athsi led Irsstitution an art 5ch¢x>l •t ourcore, we see it a5 wr respw5iFxlity to ad￿c￿e for and eTrab￿ 8reateraccess to artedu[￿tiL￿ in the UK. We believe that art is for everyone and. ￿ att committed to erurin8 that RA is relevant ind acces51b￿ to the broadest audience. We see it a5 our respMsibilty to open new way5 Into art and to develop a programrne which 15 relevjnt to ar reftectS the interests ofthe serve. Ch￿rthe ￿xt fve years the RA tsryets to become rn0￿ connerted with thewcrfld around us. We wll do this ty ¢yenin8 newd(#xsio m55￿c￿ lonline and on silel, extending a wafm wdcome for all who share our passion.. showcasiTh8 excelencÈacrcSS • ever-moTe divÈrse spe£trumof contemkK•raryart and architÉdurÈ: and fostering (keper ccffjnerti(Xb57Mth the ofart aThl IN1￿ wbstk Bullthi ourfinKial, eThir(¥vn¢Trtsl. •d ￿￿1$11￿11 res4beTh When the Royal Academyv175 foufided 254yearsa£o. wasbased on the Pri￿1p￿e that it x)uhJ fund rtsew. Overthe nextfi¥e ye¥5. in order to preser¥e oui independerKe anden5ure ourmi55K)n cthitinues to endure the testof time, ￿ rnu5t 5tren8then our reSi1￿nCe to the financial. s¢xial and erwirrmmental challenge5 we éact. We il athleve tht5 by yowng audience Opllmlslne our assets maximi%wq the c•nmer£ial opportunt1￿$ arwnd our offer- slTengthenin8 our r￿l￿nCe to the erwlronrn¢ntal challen8es fo￿." hèvo thE IiBhi ta￿Trtand skdlsto delI¥rt￿ amtAtion we set. Counc4. adwsed by the SLT and ot￿r spetsalist ￿n￿Trittee$, e4aluate and monilor risks Thl ensure systems and controls are to re8ulai re￿ew. Where appropriate. mtbytbll8 artions and imprtr•ements are put in place bythÈ SLT. All risks identified •re rec¢)rded inan on-llne ￿"Sk Reyster.wW 1sma1rrta￿edO￿anUn￿olTr8baS¢$arnI notorly irKlude5det•i15 of all risks ¢￿$￿ered but also prwde5 a med)arrism kn assesre arJ moniknini th¢)se risks. detalliry the member responsi￿ and the actlonstaken io nubgatethe r￿k. The Risk Reiister 1sforfflu￿led by thÈ SLT.. iSfLwwed quarterty" aThJ l510rm￿ty re¥￿ved bytr Auth"t and IUs Committee on aTh annu31 basis. tach risk is 8Nen a rankin8 Score. bastd on impxt and liketshood. The highest scorin8 risks are rey￿e0 bv Council and are Bi￿￿ the highest ptyxity in ierms of managernent b¢u5 and mitiKatin8 attions are put ffjto place. The Risk Re&'ster also provths the bas15 f(x proyamme of Iniernal A￿lit re￿￿. the firK11￿501¥4h1th are reptrtrd iothe Audit and Risk Committee. ThE Covid-19 pandemSc and subsequent kKkdos and d¢)sure of the Rtyal Academy has had a 5i8nificant impa[t￿ the RA'S operations. financial 5U5tainability ènd ihe whjer risk iirkI5cape ond this tontinue for sc))e time yet. The more positive tuation vth the pandern￿ has beerb ￿￿seded by external Klobal iThlluences. The Russian l Ukraine conflict tO8etherwith the k)w-term impact of the pandernic as well a5 BrexiL has contritrHJted to ihe rnacrtreconorn￿ srtuation t RA rthrf finds itself in with pfessure crf supply chains: risi1￿ inflation arKI interest ratss.. and an emewn8 risk of a ibbal re¢Èssitin. Themoreimmediaiecorttm ￿￿(￿￿￿￿er¥b1eCha￿￿1Othew$f basewth ￿￿Infl4￿0n and inrrtased lab￿r. eneryyi and tran5PQrtatiQn COSIS. Page.. 24

The Royal kademy of Arts T￿￿te5. Report Forthe year ended 31 AuKust 2022 W￿¢h general infvt[c￿ary presgJres pushry w costs and procurernent issue5 certain materi&s. thi5 ￿ a150 a very challeryn8time in the construrtim markÈt. main w)rks ifi Burtirwon House of the ￿ Schoc45 Projert are due to start te 2022. wlth the proiect fikely to Tun ￿t0 e4rty 2024. This PToiect w4s fulty funded. to these issues ts a material cost trrferrun. ￿th fvrther fuThlra¢siTr4 required and r￿k of a h1nd￿ There remains UnCerta￿ty¥S￿ recoverfrorntty yrtdÈmicandthÈ olthÈ-toM oflN0￿¢￿s. on backvisftor numbers represents a further risk. b￿h in terrns of redyced visitor rrtJmbeT5 to wr exhilMtKm PfOBramme aThd a r2ductioh in ThÈ Fritnds of the Royal Atademy donatim to the RtyalAcademy aristhRfrcrfn ¢"mir•shed Frnds' membersh¥) Income. The other highest $C￿n& risks indude stsff recruitment and retention due to ¥d4ti1ty in ￿b{mIr market. intludirtg the "Great Resi8natvJn" fdlow1￿ the paThJemic', the temi impxt of Brexit on the diveryty of 5tudeTht b(xly in Schools and staff due tr>thè chiniÈ5 im Mnmwation law. the risk ofthe possiknlTty of plant failure inthe galler￿$, includingthe Impartofe¥tremeweather.' andtttethreatofa datasecvrrtybreathorrybEr-4ttark. Exttmal wisks indudÈ businessinterruption arising from a Si￿￿1¢ant￿ernal e¥ent i￿lUd iivil unre5L terr￿￿ aTh)ther par￿er￿Ar or extreff weather. These rtss are * subject to Ir￿￿dI￿e mana8efflenl ctm5lderatl￿ tts Pro￿de mlts8at1￿. Steps indude robust flnancial planning and ana￿$￿ supp)rrinrf the medium ienTh cash flcw lorecasts of the Royal Acadeffly to inlwrn 5tritegl¢ decisions.. having pr¢curement protes5es and statrf￿s to achieve valutrf0r￿M When selectng sup￿￿T$ and durlThB the courseofcontract5.' rotxj5tproiertgoveman￿. wpp(xted bya Strong intemal extemal proiettteam. developingstratewes to attrart the best staff. to yornote wellbein& and proartbvely plan developnnt pathways for key staff.. seekin8 alternatfve available routES to ensure diver>ty OF students ￿ the IIASckK4s." CCThF4etioTh of the pL4nt uperade prozrarnrne. tO8ether with plonneo preventativt mawitsharte. £yber security and w<¥kiry prartices m plxe.. contniued ty￿pr￿ement to dats protectyon polcles, procedures and controls. induding emergery re5WX￿ planni￿ and &'sa5ter ieco¥ery and business Coniinuitv planNn8 and prrxethjres. fUNDUSING ThÈ BA'S approach to fuNJraisin8 is kr8ehT re1èknonsh￿ kd. through iTrJNtdual (k￿ iiMn& ￿embershipS 01 the ￿ cjpitsl aweals. legades. ar￿ G(xpwate SPOr￿Ship. The PA does noi 8enerally en8a8e with commerclal partlclpators and professbnal fuTrJraisers. The KAdces ￿t Carry0￿ IM￿￿e-t1￿MI5e fundraI￿n¥ or 5treetcdledKyiis. The RA 55 ￿￿stered 411th the FwKlr•sK% Regulator ar￿ h45 wbmitted its amual complair￿ ret￿rn to the Fundraising Rewlator. The RA Com￿leS applicable regulation with regard to fvrlraiyn8 and in athlition puts the P￿ary of o 5UPPOrter data at heart of Èverythir48 do. We manaee pW$c￿al dèta ￿5pecrf￿lly and responsiwy in aCcOrda￿e with Jf published privacy poliry. The RA received 143 crynplaints a5SQClated ith lunthai5in8 ar¥J mÈmberthip in this hnarial year. compared to 77 in the prewous ftnanaal year. As in previou5￿ar5. most of comp14ints rdated to membership c4ncellatiw5 due to Intrtased pri¢e. rathei than complaints in the Strlci sense. ￿ number of ccmplaints in caiegory is hi8her than the Pre￿ou5 year. This is still a ctThparativety l¢)w fi8urE for sÈttty and 8iven tyjr adNits. This represents the de¢ree ￿th which we have de¥eloFed our processes to ensure put our 5upp¢ylers and ￿ safeguardir% of theiT dats * the oEntr¢ of everythin8 W¢ do. Nevertheless, * are committed io any expre5sh)n of dissatisfactw I￿1 hYenrtyin8 way5 to improve. Our swtyter reuityons team irNestwate eath tomplaint and do al tan io resol¥ cc*))plaints and ensure supporters dre happywrth ourwork. Page.. 25

The Royal Academy ofArts Tntstees, Report For the year ended 31 August 2022 STATEMÉ14T OFTRUSTEEY REWI￿￿lmES The trustees tr rntmbtrs ol cc1￿1 Iwho are also dirertrN5 of Acaderny for the purpose of company lawl are respon￿ble for preparing the tru5tees' report and the hnancial statements in accwdarKe apklkable law ar¥J ilnited KIngd<￿ ￿C(￿Jnting siaThJards IVrted ￿n1dryn Gereralty ￿￿pted AtttyJntinÉ PrauKel. Company law fequires the trv5tee5 to Fxepare fir￿￿la1 statements for each financiol year whith elve a true and fair view of the state tsf affairs ol the £haiitable cornpany and the group and of the incoming resources. including the Income and expenditure otthe thartiwe youp for that[￿￿¢4￿. In preparingttsethnantial $￿ementS. the tru5tee5 •re required to.. 5elEct Sulta￿e accountir¥ polKies and then aPF4ythtm tohsisienthT: make judwents and eMimes thatare reason3tAe arml prude State whether 3pplicaNe UK Accountin8 Standatd5 have beEn f￿l￿d. sublect toany rnaterl•l dtpartures disch)sed and explained in the financial statements.. prepare the financial ststernents on the ￿1Th8 c1￿M basi5 it 15 indpprtiwiate 10 presume that the thwrty ￿¥11 Contin￿ kn business: obseTve the methods and princlples ybthe Chartr5 SORP. The trustees are responyble fr>r keeping proptr re£ords that disckne with ￿aU￿ble acfwacy at any time the fiDarKial p05itiDn of the charitsbk company and enab￿ thern to ensure that fi￿r￿la1 staternents comply ￿th the Companies Act 2(￿. They are alsts [t5p￿Sib￿ safeguarding a55ets of the LI￿1table conW￿V and herKe for tskin reasonable steps forthe weVent￿ and detecknon of ITaud other Ir￿ularitie￿ AUOtTIWORMATICA•I So far 05 exh Oft￿ trnsteesatthe tlme the tTU5tees' ￿pOrt is4woved Is aware". there 15 nD rele¥ant inlormaiim of whKh the authittys are unoware. and they ha¥e taken all relevant ou8hi to have to make themsdvesaware ol arry re￿Vanta￿dit informatkn ¥Thlto establbsh that the audi￿5 are 4w4reof that inf0rn)a￿n. AUDITORS A re￿￿tion to re-aPPo￿t Moore Kiryswn Smth UP 45 the Rw•l Ar4demrfs •Aitus lll be put to the forthc¢)min8 General Assembly. If of the{<￿1￿1 Rel¥e¢f•5alterPRA Pres￿￿nt IAthrn CaruK4•d Peter Sl John W The Royal Arathmyol Arts Byrlln8ton House Pbc¢*lilly London O Pa4e.' 26

Independent Audttors. Report to the T￿Stee$ of The Ro￿1 Atademy of Arts Op5nlon We have audited the financial statements of The Royal kademy of Art5 (the 'parent ¢haritable company'l and its subsidiaries lthe "group-l for the year ended 31 A￿aust 2022 wthich comprise the group Statement of Financial Actlvities, the group and Parent tharitsble company Balance Sheets, the group Cash Aow Statement and notes to the financial statements. indudirE signthcant accounting policies. The financial reporting framework that has been applled in their preparation is applicable law and United ￿ngdryn Accounting Standards, induding Financial Reporting Standard 102 The Finan¢ial Reporhng standard applicable in the UK and Repuwic of Ireland (United Kingdom Generally Accepted Accountin8 Practice). In our ¢)pinion the financial statements: give a true and fair view of the state of the group's and the parent charttable company's affairs as at 31 August 2022 and of the group's incoming resources and application of resources. includin8 its income and expenditure, for the year then ended. have been propedy prepared in accordance wrth Untted Kingdom Generally Accepted Accounting Practice; have been prepared in aCCLYdan￿ with the requirements ofthe Companies Act 21K6. Basls for opinion We condurted our audit in a¢aYdan￿ wrth Intematiwal Sta￿ards on Auditirvd IUKI I'ISAS IUKI") and applicable law. Our re9)onsibilthes under those standards are fijrther described in the èuditor5' re5pon5ibilities for the audit of the financial statements sertion of our report. We are independent of the charitable company in atcordante with the ethical fequiiements that are relevant to our audit of the financial statements in the UK, Including the FRCS Ethical Standard. and we have fulfilled our other ethKal rE5pon5ibilFties in accordan￿ wlth these requirements. We believe that the audrt evidefi￿ we have obtsined is suffiaent and appropriate to provide a basis for our opinbon. Conduslons rnlatlng to golng concern In audtting the financial statements, we have conduded that the trustees. use of the 80ing concem basis of accountin8 in the preparation of the financial statements is appropriate. Basèd on the work we have perfornied. we have not identified any material uncertaintie5 relating to events ¢y conditions that, individually or rollettNefy, may ra5t si8nific3nt doubt on the group's and parent charitable company's ability to coth.nue as a going concern for a period of at least twelve month5 from when the financial ststements are authorised for issue. Our responsiblllties and the responsibilities of the trnstees with respect to going ccfflcern are described in the relevant sections of this report. Other Inforn)*lon The other information comprfses the inf¢xmation induded in the annual feporL Other than the financlal statement5 and our auditors, report thereon. The trustees a￿ responsible for the other inf0miat1(￿ contained in the annual report. Our opinion on the finanaal Statements doe5 not cover the other infomiation and, except to the extent otheTWiSe explicity 5tsted in our ￿p(rt we do not e4xess any fomi of assurance condusion Ihereon. Page.- 27

Independent Auditors. Report to the Trustees of The Royal Academy of Arts oiher Inforrnation Icontlnued) Our responsibllity is to read the other inftymation 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 identrfy such material incortsi5tencies or apparent material misstatements. we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material mi5Statement of this other informatlon. we are required to Teport that facL We have nothing to report in this regard. OplnSon on other matt¢VS pr￿ribed by the Compan•es Art 2W6 In our opinion. based on the work undertaken in the course of the audit: the information given in the trustees, report for the financial year for which the financial statements are prepared is consistent with the financial statements.. and the trustees, report has been prepared in accordan￿ with appli(able le8al requirements. Matters M whlch we are rnquSred to report by exception In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit. we have not identifiÈd material misstatements in the trustees. report. We have nothing to report in respect of the ft>ll¢)wirw matters where the Companie5 Art 21J)6 requires us to report to you if. in our opinion- the parent charitable company ha5 not kept adequate and sufficient a¢countin8 records. or returns adequate for our audit have not been ￿•Ved from branches not Visited by us.. or the parent charitable companvs financial statements are not in agreement with the accounting records and returns; or • certaln disclosures of trustees. remuneration specified by law are not made,. or we have not received all the information and explanations we require for our audit. Re5pon51bllltles of trustees As explained more ful￿ in the ststement of trust￿, resportsibiltt￿S set out on page 26. the trustees Iwho are also the d1￿CtorS of the charitable company for the purposes of company lawl 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 deterniine is necessary to enable the preparation of financial statements that are freè from material misstatement. whether due to fraud or error. In preparing the financial statements. the trustees a￿ ￿sponsible for assessing the group and parent charltable companws ability to Contin￿ as a going ¢ontem. disdosinB. as applicable, matter5 relatèd to going concern and Usin8 the going concern ba515 of acctrJnkn"ng unless the trustees either intend to liquitlate the group or parent charitable company orto ￿ase operations. or have no realistic altematlve but to do so. Page.. 28

Independent Audttors, Report to the Trustees of The Royal Academy of Arts A￿&tOrS. responsibilities lorihe awlft of the finafftd•l stements Our objectives are to obtain reasonatde a55UTance about vthether the financial statement5 a5 a whole are free from material misstatement. whether due to fraud ￿ error. and to issue an auditors. ￿port that includes our oplni¢)n. Reasonable assurance is a high level of assUra￿e, but is rhot a guarantee that an audit ccfflducted in accordance with ISAS IUKI will always detect a material mi5statement when rt exists. Misstatements can arise from fraud or error and are considered material if. individually or in aggregate, they COLld reasonably be experted to influence the economic decisions of users tsken on the bast5 of these financial statements. As part of an audit in a¢oYdancÈ with ISAS IUKI we exertise professional judgment and maintain professional scepticism throughout the audit. We also: Identify and assess the risks material misstatement of the financial statements. vthether due to fraud or error. design and perform audit procedures responsive to those ri5ks,' and obtain audit evidence that is sufficient and appropriate to provide a ba515 for our opinion. The risk of not detecting a material misstatement resulting from fraud is h￿her than for one resulting from errcff, as fraud may involve collusion, forgery, intentional omission5, misrepresentatlOn5. or the override of internal control. obtain an understanding of intemal control relevant to the audtt in order to design audit procedures that are appfopriate in the circumstances. but not for the purposes of expressing an opinion on the effectiveness of the group and parent chaiitable compan￿$ internal control. evaluate the appropriateness of accountin8 polioes US￿ and thè reasonableness of accountln8 estlmates and related dlsclosures made by the trustees. conclude on the appropriatene55 of the trustees, use of the goiw wrKem basis af accounting and, based on the audit evidence obtained. whether a material uncertainty exists related to events or conditions that mav cast significant doubt on the group and parent charitable compan￿$ ability to ¢rmtinue as a 8Olrtg concern. If we conclude that a material Un￿rtaInty exists. we are required to draw attention in our auditors, report to the related disclosures in the financial statements or, rf such disclosures are inadequate, to modify our opiniort. Our conclusions are based on the audit eviden￿ obtained up to the date of our auditors, report. However, future events ( conditions may cause the group or parent charitsble company to cease to continue as a goin8 concern. • evaluate the overall presentation, strurture and content of the financial statements, induding the disdosures, and whether the financial 5talements represent the underlying transactions and events in a manner that achieves fair presentatiLM. obtain sufficient appropriate audit evidence regarding the finanoal information of the entities or busine55 activities within the group to express an opinion on the consdidated finanaal statements. We are responsible for the direction, supervision and perfomian¢e of the group audit. We remain solely responsible for our audit report. We communicate with those charged wlth governance rewdin& among other matter5, the planned scope and timlng of the audit and signrficant audit findings. indudin8 any Si￿1fir4nt deficienues in internal ¢Mtrol that wè idenb'fy during our audit. Emplanatlon astsb what extent the a￿11¢ Was (on5￿ wwble ofdetertlry Irresulaflt￿9, indudin8 frawl Irregularlties. Induding fraud. are in5tsnces of non-compliance 7Mth law5 and re8ulations. We desi8n procedures in line with our responybilities, oU￿1ned above. to detert material misstatements in respert of irregularities, including fraud. The extent to which our procedures are capable of detecb'ng irregularities, includlng fraud is detailed below. Pa8e.. 29

Independent Auditors, Report to the Trustees of The Ro￿1 Academy of Arts Explan*lw as to ¥that extent the audlt wa5 c&￿1￿1￿d tapable of detectlne Irrel￿rItIeS. inch￿1￿$ fraud lcontlnuedl The objectives of our audit in respett of fraud are to identify and asse55 the risks of material misststement of the financial statements due to fraud- to obtsin 5uffiuent 3pproprlate audit evidence regardin8 the aSSe￿e￿ rlsks of material misstatement due to fraud. through designing and implementing appropriate ￿SponseS to those assessed risks,. and to ￿pOnd appropriatety to instances of fraud or susperted fraud identified during the audtt. However. the primary responsibility for the prevention and detection of fraud rests with both management and those ch3rged with g(weman￿ of the group and parent charitable companv. Ow approath was as follows: • we obtained an understanding of the legal and regulatr&ry requirements applicable to the charotable company and considered that the most S￿nIfiCant are the Companbes Act 21116, the Charities Act 2011, the Charity SORP, and UK financial reporting standard5 as issued by the Finantial Reporting Council. we obtained an understanding of how the group and charitable cornpany complles with these requirementi by di5CU55ions with management and those charged wth gthièmance. we assessed the risk of material mi55tatement of the finanual statements, including the risk of material mi55tatèment due to fraud and how it m￿t occur, by holding discussions with management arKI those charged with governance. we inquirèd of management and those charged with 8oveman¢e as to any krbown Instances of non- compliance or susperted non-compliance with laws and regulations. based on this understsndin& we designed specific appropriate audil procedure5 to identify instances of n¢)n- compliance with laws and regulation5. Thi5 included making enquiries of management and those charged with governartce and obtalning additional corroboratNe evidence as required. There are 1fthe￿nt limitations in the audit wocedure5 described above. We are less likely to beccrfne aware of instances of non<ompliance with laws and regulation5 that are not closefy related to events and transactions refiected in the finaA¢ial statements. Ajso. the r￿k of not detecting a material misstatement due to fraud is higher than the rlsk of not detecting one resultin8 from error, as fraud may invofve deliberate concealment by, for example. forgery or intentional miS￿presentatiOns. or thrtyth collusion. Us• of thls report This report is rnade solely to the charitable company's members, a5 3 body, in accordance with Chapter 3 of Part 16 of the Companies Art 2(￿. Our audtt work h3s been undertaken so that we might state to the charitable company's members those matters which we are required to state to them in an auditors, rep¢)rt and for no other purposè. To the fullest extent perniitted by law, we do not a￿pt or assume responsibility to any party other than the charitsble company and charIta￿e crynpanrfs members as a body, for our audit work, for this report, Of for the opinions we have formed. N- k.,L L./ Andrew Stlckland (Senlor StatutoryAyditor) for and on behalf of Moore Kingston Smith LLP 9 Appdd Street London EC2A 2AP Date.. Q/.-L- ?oZZ Page.- 30

lindudiry an inrorne arml expenditure Toial 2021 2• 22 (¥Jnakns and le4ac￿% GenÈial donatlons fmm RAr Otherdwions Irom PAV.. PToiert 351.196 16,976 399.913 16,976 398.913 11.157,287 &990.695 16.828 601A74 11.144,Str4 9.534,3Y 2.756,765 Otherproject5 Domthinsfrorn Fithofthei4 Olherdonall￿s GiaTht in(ome Ch¥itsblè act￿￿¢5 IiAV393 I￿$4. 57.*7 LfJ4244 YA.926 5.14L811 If4J7I 23 16N7 IW.143 4W7.068 23,6 16,647 J•¢,14J

,135,618 21,092 11.1 82,D97 Schoo15 Colthions Edu(atiOn Ot￿r ¢radkn8attNltièS Income fromtralin15vWws SpNsorsNp. rent•hY otlv rEwpts IrN4Strnents 8ankint4rost 9383.026 1876.385 9.YBIOZ6 1874385 4.959,471 1113,737 5.617 323 5,617 462 Totsllnt•m• 345?6.￿3 517.927 3,147.059 S,141.811 433IU60 36,7247SI Exp¢nJtweoR: FundrJuiry Expendrt¥re liom tr>1￿¥sUbs￿ts Chafitable xtfvrtle5 Other ￿e￿[￿tiOnt0Sts Donat￿￿ ¢oRAT• Owninut￿o ￿ ¥a￿e of mstthert PWDWrtv {2,762,8S71 (6.668.1￿> 10 120.660AP)41 12.4XWI II7618571 13,041.2371 1&66&1gJI IS,229ffj401 I?)￿74￿) 121,W3.3871 1169.0441 11,6481 115.32BI l&d 1&1731 IU731 17205211 TotslexpeThdlw I￿,￿,1•1} 1504.9861 II4147811 1169.L441 133,Ila9521 13Q810.1131 Net1kn5e5I/￿S￿ 19 (Un9) 121AII 163.Wl L38.784 li 4,185ffi22 {29,848) 7Cfj,398 I63,￿3) 4,97I767 1007¥576 6.057.422 Tiansfws beMenfwds 2+26 1.622A28 133.(151 {1,4465471 Tax ciedlt Rèmèasurompnt of dellned benefit pénsir￿ K￿MèaSSe1 372Ay a71￿5• 137,385 12.4MCOJJ 11430.ty 1.921.0 4,[r￿￿, {29,848) 563.522 3681 5.526.2￿ •W30 411S.807 Total funds bro￿1ht1￿ward 6X).261 672.362 1471.941 8M478 I1.765￿19 IQSA164 97.373,057 gIY41J61 611514 I￿>5￿) ts291039 iU.503.2Y 105.48&864 AII8wft5 ard knss ltsiw¥e 5tsterf•rtol FknxialActkntsafvJ dory4fr￿(0n1ln￿r8atht$. ' RATdEnole5 ftTrilkaknryTntsi P¥È'. al

The Royal Academy of Arts Balance Sheets as at 31 August 2022 Gtoup 2022 Royal Academv 2022 2021 2021 Flxed a55et5 Intangible assets 6 Burlington Gardens Other tangible fixed assets Heritage assets Investment property Other investments 17 18.c 18.a.b 16 93.707 312,437 66.646.902 65.201.863 28,696.005 29.753.888 1.392.110 1,392.110 1.155.1 1.155.( 1,741057 1.870.089 ,650 66.646.902 28.677,018 1,392,110 1.155.000 1.742,165 284.Ll)6 65,201,863 29.732.164 1.392.110 1,155,1 1,870.197 19 Total flxed assets 99,725,781 99.685.387 99.703￿46 99,635,340 Current assets siock Debtors Cash and cash equivalents 961.730 4.308.075 17.518N8 916.916 2,865,734 13.040.769 4,692.122 17.31)4.604 4.19).577 12,962,709 Tolal current as￿$ 22.788.293 16,823,419 21.996.726 17,153.286 Credrtors- amounts falling due within one year 21 15x172.0571 19,151.619) (4.222.$341 18,592,863) Net current assets 17.716.236 7,671,8 17.774.192 8,560,423 Tolal assets less current assets 117A42.017 107,357,187 117,478,038 108.195.763 Creditors- amounts falliwd due after more than one yèar 22 110382.723} 110,602.323) 110.382.723) 110,602,323) r4et a55ets excludin¥ ptnsion ￿hem* asset lo7￿9.2￿ 96,754.864 107.095.315 97,593,440 Defined benefit pen&on scheme asset 6,444,OIX) 8.734.L 6.444.OlJO 8,734,000 Total net assets 113.503,294 105.488.864 113.539.315 I￿,327,440 The funds ofthe tharlty. Endowment funds 24 7911 888.478 791110 888.478 Ae5tTiCted funds 25 19327A02 15.237.7 19J27302 15.237.760 Unrestricted fund5'. De518n3ted funds General funds Pen￿On reserve 26 642,514 672.362 86297.168 79,956,264 6AMX#X) 8.734,¢J)) 611514 86J33.189 6.444.000 672.362 80.794,840 8,734,(NYJ 29 Total unrestricted funds 93J83.682 89,362.626 93.419,703 90.201.202 Total d￿rftyfund$ iia.s03.294 105,488,864 113.539.315 106.327.440 Approve and authorised for issue by the President and Council of The Royal Academy of Arts on....--...................... President Treasurer (Adam Caruso and Peter St John RAI ebecca Salter PRA PÈ rstjoh Re8iStered Company No. 06298947 Page: 32

The Roydl Academy of Arts Consolldated Statement of Cash Flows For the year ended 31 Au8USt 2022 2022 2021 Net cash prov5ded by operdtin8 •tt1 28 11379.784 10,648,851 Tax cr•dlt recelved I￿361 Cash flows from In¥tsttnÉ actl¥Stles Interest paid Interest received Payments to acquire intsngible fixed assets Payment5 to acquire tangible fixed assets Payments to acquire fixed asset investments li 1438.370 5,618 1483.7031 17.a 18.a.c.d 19 199,6521 13,858,743) 1925.(O)I 13.814074) Net ¢ash used In In¥estlry acthA (4,250￿26) 15,367.0901 Cash flows froffl flfiandn8 acthA Net repayment on wofving credit facil￿e5 Bank loan repayments 21 22 {3.7(X>.(xio) I219A￿l 1219,6001 Net ash used In flnaNIw4 acllvlttes 13.919.600) 1219,6001 Net change in cash and cash eql￿Valents Cash and cash equivalents at the be8inninB of the year 4.477.719 13.040.769 s.1￿2.161 7,978,608 Cash and cash equl¥alents at the end of th¢ y 17.518.488 13,040,769 Analysls of tash and ¢ash equ1vd1w￿. Cash at bank and in hand 17511488 13.040.769 Totsl cash and cash equivalents 17518.488 13.040.769 Analysls of dwnges In nel debt: Cash flows Closlng Cash Loans falling due within one year Loans falling due after more than one year 13,040,769 13.919.6LTh)I 110.602.3231 4,477,719 3.7c(J.￿XI 219,fyC 17,518A88 {219.6(X)) 110.382.7231 21 22 Total 11,481,1541 &397319 6.916.16S Pa8e.' 33

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2022 l General InformatSon The Royal Academy of Arts I"Royal Academrf'l and its subsidiaries ItcEether"the Group") wntinues to aspl to promote the arts of deslgn and educate the public in the creation, app￿cIation and enjoyment of arts. The Te815tered office Is 8udington House. Piccadilly. Lond￿. The Royal Academy is a company limited by guarantee and a ￿gistered charity and incorp)rated in England and Wales. The Royal Academy is a Public 8enefit Entity a5 defined by FRS 102. 2 Summ¥y of $18nlNcant accountlrrf polldes The financial statements have been prepared under the historical ¢05t wnvention as modified by the revaluation of investments to market value and in compliance with Accounti￿ and Reporting by Charities: Statement of Recommended Practice applicable to charities Preparing their financial statements in accordance with the Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the Unlted Kingdom and the Republic of Ireland" I"FRS 102.1. the Charities Act 2011 and Companies Act 2006. The financial statèments are prepared in sterling whith 15 the fvnctional currency of the Group. Monetary amoub)ts in these financial 5tatemertts a￿ rounded to the nearest pound. a. 8è$1s ol wepar*lon The finanaal statements have bèèn prepared on a going concem basi5. The consolidated financial statements comprise the financial ststements of the Royal Academy and its three trading subsidiaries= RA (Arts) Limited. Burlington House Limited and R.A. EntÈrprises Limited made up to 31 August 2022. The totsl income and expenditure of these entities is shovm in the Statement of Financial Artivltles I"SOFA"l and the detsiled results are disclosed in note 7 of the financial Statements. The statements are consolidated on a line by line basls. The Royal Academy has taken advantage of the exemption in secticffl 408 of the Companies Act 20L% from disc105ing its individual SOFA. The Royal Acaderny onty surplus (net movement in funds) was £8,050,451 12021.. £8,954,383). The prinapal accounting policies applied in the preparation of these financial statements are set out in the notes below. These policies have been ¢onsistendy applied to all the years presented, unless othenvise stated. b. Golni con¢em The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast $18nificant doubt on the ability of the Royal Academy to continue as a going concem. The trustees have made this Jssessment for a period of at least one year from the date of approval of the finanual ststements and have considered the continued impact of the Covid-19 pandemic, a5 well as the macrooconomic sttuation the Royal Academy now finds itseW in Tmth pressure on Supp￿ chain5; rising inllatlon and interest rates. and an emerging risk of a global recession. Page.. 34

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2022 2 Swnmary ol si8nifKant att￿11￿8 polldes lu•ntlnuedl b. Gotng concern Iconllnwdl In particular. the trustees have considered the sensitiwty of fo￿3$1$. indudin8 that of a slower recoveryfrom the pandemi¢. They have taken account of the ￿lated pressures on its key sources of income from donations, in particular the annual donation from the Friend5 of the Royal Academy; Sponsorship and admissTron income from its exhibitions programme. and from its trading artivities. induding onsite and online retail and corwate membership and lets. The tnjstees have further remewed its underlying cost base and its expenditure on both its charitable and fundraisin8 attivities, as well as from ¢LYnmercial tradin& supporting these key source5 of income and the Prospec￿ impact of rising inflation. higher energy tariffs and salary increases on these. The Group has unrestricted net current assets of £5.9m a5 at the year end. The Group also has access to committed £3.5m Masterplan Revolving Credit Faciltty (reducing from £5.Ckn in May 20231 and £1.5m Operating Re¥olviNd Credit Faolty Ireducin8 from £2.5m in March 20231 to August 2025 and an annuallv renewable £0.5m overdraft facllity. None of these facilrtie5 were drawn uwn as at the year end. In November 2020. the Royal Academy Trust pledged a £2.Ckn donation to the Royal Academy. which may be drawn down over the period to 31 August 2023 as emergency support fvnding to mitigate the financial impart of Cowid-19. This pledge has not yet been called Up(￿ by the Royal Academy but will be duri￿ 2023. In addition, the Royal Atademy Trust. an independent chanty established to specifically provide support to the Royal Academy. held funds of £53.Im at 31 Au8USt 2022 in trust for the Royal Academy, of whith E18.3m are unrestrirted, includin8 £11.9m that is both unrestricted and not deS￿natEd. and É0.7m of restricted funds held In the Paul Mellon Endowment fund, which may be used for the general purposes of the Royal Academy. The £2.(hm pledge will be drawn from thesefund5. In vlew of the level of Cur￿￿ liquid reS￿r(eS. the ILMg terni loan funding and short tern) facilities in place: and the pledged donations and ongoing support of the Royal Academy Trust, the trustees considèr that the Group has both sufficient funding and IiqLbidity for the foreseeable future. The charity therefore continues to adopt the Boing concern ba￿S in preparing its financial statements. Tt)tal rettffn Inwstment acc￿￿￿5 The trustees have dected to adopt the total return approath for the investment of its permanent endowments. Under this approach. the pemianently endowed funds are invested to produce an investment return without regard to whether that retum is in the form of inccrfne or capital appreciation- the investment return forms a component of the endowment fund called the unapplied total return. The trustees periodically determine how much of the unapplied total return is released to income for spendir6 and how much is retsined for investment. This allocation Is made equitably to balance the need for inccKne to meet ￿rrent requirement5 and to hold fuNls as part of the endowment to produce irivestment returns for the future. Page.. 35

The Royal Academy of Arts Notes to the Flnanclal StstementS For the year ended 31 August 2022 2 Summaryof sl¥nlfirant ac£ountlwd polkles l(ontlnuedl d. Funds structure Where the￿ is a legal restrirtion on the purp)se to which a fund may be put. the fvnd is d8ssified elther as restricted fund or an endowment fund. Rèstricted funds are those where the donof has provided ￿ the donation to be spent In furtherance of specified charitable puwe. Endowment funds arise when the donor ha5 eypressly provided that the donation is to be invested and only the income of the fund may be spent. These funds are sub analysed between those where the trustees have the discretion to spend the capital. an expendable endowment, and those where there is no discretion to expend the capitsl. a permanent endowment. Those funds which are nwther endowment nor restritted irKome funds, are unrestricted income funds which are sub analysed between designated funds, where Council have set aside amounts to be used for specific purposes or whith reflert the non-binding wishes of donors: and unre5trirted funds. which are used at the trustees, discretion in fvrtherance of the general ¢*Jjective5 of the Royal Academy. induding the general fund which represènts the Group's reser¥e5. The major fvnds held in each of these categories are dt5closèd in notes 24 to 26. Transfers between funds represents the funds transferrèd between restricted funds to the 8eneral unrèstricted fund on completion of projects and restrictions being Sat￿r￿d. e. Burwngton Houst The Royal Academy holds a 999 year lease on 8udin8ton House, of which almost 850 years remain, title to which is vèsted in the Secretsry of State for thè Department of Communities and Local Govemment. The rent of the property is nominal but it is the responsibility of the Royal Academy to maintain the property in a sound condition. The woperty is inalienable in that its ownership rèverts to the Government if it is no longer used bv the Royal Academy. The property works carried out on the galleries, Royal Academy Schools and Library are principally to maintain the fabric in its origi.nal condition and ensure an adeqyatÈ enwironment for the exhibits. As the value of these works is part of the fabric of the buildlng and cannot be realised, these are not recognised in the balance sheet except in the casè of building bmprovements a5 detailed in the fixed assets and depreciation policy descritred below. f. Herfla￿ a55ets The Royal Academy holds a collection of WO￿ of art. which consists of paintings, sculptures and prints, together with a library of books acquired by the Royal Academy by donatlon. bequest and from members on elertion to the Royal Academy I'Diploma Works"). The tru5tee5 do not consider that reliable cost or valuation infomiation can be obtained for the vast majority of heritsge assets held by the Royal A£ademy. In particular. the Diploma Works have an Intrlnsic value to the Royal Academy collection as an embodiment of the development of the Royal Academy as an institution. The manner in which they are given to the Royal Academy makes the valuation of these items very sublectsve, such that a reliable value cannot be arrived at. Furthennore. the cost of valuing the entfire collection would be onerous compared with the benefft dffived by user5 of the finanoal statements in assessing the Royal Academ￿5 stewardship of these asse Page.. 36

The Royal Academy of Arts Notes to the Finandal Statements For the year ended 31 August 2022 2 Summary of slRnlfi¢ant a¢uwntlng polldes I￿ntInued) l. Herltage assets IcontSnuedl As such, the Royal Academy does not Tecognise these assets on its balance Sheet other than a¢ouisitions made 51nce l April 2010 with a value of £IO,OCLI or mo￿. These are reported at c¢)st where the asset is purchased or at the curatorfs best estimate of current value where the asset is donated. Such 35set5 are not depreciated but are reviewed for impairment in the event of physi¢al deteric*ation. Any imp4irment in the value of an asset is treated as charitable expenditure in the year in which it arises. Expenditure which is required to preserve or pre4ent further deterioration of the collethon Is recognised In the SOFA whèn it is incurred. . Fwelln ￿rrencY Investment transactions in foTevdn currencies are recorded at the rate Tulin8 at the date of the tTansartion. Assets and liabilities denominated in foreign currencies are retsan4ated at the rate ruling at the balance sheet date. h. IntanÉlbl¢ assths Computer software and website costs are stated at cost ￿$S accumulated aMOrt￿tion and impairment losse5. These are amortised overtheir estimated useful lrfe. of three year5. on a str•ght line basis. l. Tanglble assets Expenditure on building improvements new machinery and equipment is capitali5ed as fixed asset5 and stated at cost le$5 accumulated depretiation. Thè Royal Academy applies a £l.l￿ threshold to the capitalisation of fixed asset> Depredati￿ is charged at the following rates on a straight line basis: Building improvements Computer5 Office fixtures and fitD Plant and equipment Motor vehicles 5 to 25 years over 3 years 3 to 10 years 5 to 15 years over 3 years Short leasehold propeity Impr￿Ments are depreoated the period of the lease. Freehdd property has been capitalised and induded in fixed assets at cost. Depreciation has not been provided after taking into account the value of the land, the residual valuè of the property and the estimated Useful lrfe of the asset. The woperty is reviewed annually for any potential impairment. Investment property has been capitallsed and induded in fixed assets Initial￿ at cost and subsequently at fair vahje at the repcwting date. Change5 in fair value are reco6nised in the SOF No depreclation 15 charged on assets in ¢ourse of COnStrUttion. Where assets are constructed as part of prolect for which specific identifiable assets a￿ bTOU8ht into service bef￿e the overall project is completed, such assets wll be transferred fr¢)m assets in course of construrtion to building improvements or flxtures. fitttn85 and equipment as approprlate and depreciated from the date these are placed in servi￿. Pa8e.' 37

The Royal Academy of Arts Notes to the Financial Statements For the year ended ai August 2022 2 Summary of slgnllkant accounlln8 polkles lcontlnued) l. Operat1￿ leases Leases that do not transfer all the risks and rewards of ownership are dassified a5 operating leases. Payments under operating leases are charged to the SOFA on a straight line basis over the period of the lease. Incentives received to enter into operating leases are crediteil to the SOFA to reduce the lease expense. on a 5trai8ht line basis over the period of the lease. St(Kk Stock prlncipally consists of shop and e-commerce products and is valued at the lower of c05t and net realisable value. In the case of artworks provided by an artist these items are recognised in the financial statements attheir anticipated sales pri￿. le55 anticipated cost of sales and any subsequent impairment. l. Income Income, which is stated net of VAT where a￿lCable, and intrawoup transactions, consist5 of box office takin85, sponsorship. donations and grants. Income received for an actNity taking place in a subsequent perityj is deferred to that period in ottordance with FRS 102, ex￿pt where that income relate5 to an exhibition where the accountinB policy outlined below is followed. l. Exhlbttlons The ￿sUlts of exhibitr'ons are recognised in the finanoal statements of the year in which the majority of the exhibition tskes place. Costs incurred and income rece￿￿, including sponsorship income. in connection wlth forthcoming exhibitlons. where the majority of the exhibition falls after the year end. are deferred at the balance sheet date. If a decision Is made not to proceed with an exhibttion. the costs are written off. COMMI￿0￿ on art sales at the Royal kademvs summer Exhibition is recognised at the point of Sale by the art15t. 51. Don*ed seNic•s Where aft artist has donated their service5, for example. In the creation of artworks or artworks themselves, to be sold alongside an exhibition, the donated sèrvices or artworks are recognised in the financial statements in accordance with the polyfor exhibitions income disd05ed above. Other donated seNces are re¢(v8nised when these have been delivered and are valued at the amount the Royal Academy would ￿ prepared to pay for a simitar 5eNce. IN. Patrons Patrons in¢ome is recognised in the finanual ststements on a cash receNed basis. Iv. Grants For performance related grants. income entitlement is considered to be conditional upon the meetin8 of conditions imposed by the grant. Income is therefore recognised in the financial ststements to the extent that the Royal Academy has demonstra￿¥ met any grant ¢onditiMS imposed. Non-perfNmance rdated grants are recogni5ed Whe￿ there is evidence of entitlement. re￿Ipt is probable Imore likely than not) and its amount Can be measured reliabty. Page.. 38

The Royal kademy of Arts Notes to the Flnanaal Statements For the year ended 31 Au8USt 2022 2 Summary ofsiinffic•rt accoun￿ry polldes (contlnued) l. In¢ome Iconlinwdl v. Donatlons Donations and related &ft Aid are accounted for when the donation is recerved. If donations arè specffjically in connection wrih a future event, these are re5trirted.. rf Specifical￿ in connection with a future exhibition, these follow the policy set tyjt in 2.1.i.. y6. Tradlni subsldlary In¢ome Turnover is measured at the fair value of the consbderation received or receivable and represents the amount receivable forgoods supplied or seThices rendered. net of discounts and VAT. Turnover is recognised at the point of sale for 80(xls and when seThices have been delivered. Subscriptions are accounted for in the perbod in whith mèmbership commences. . Lega¢les Legaaes are accounted for as income where there 15 dear entstlement. the amounts tan be measured reliably: and re￿pt is probable. Rèteipt Is probalAe when-. - Confirniation ha51)een re¢ei¥ed from the representaiives of the estatdsl that probate has been granted,. and - The executors have establthed there a￿ suffioertt assets in tr* estate to paythe legacy." and - All conditions attathed to the legacy have been fulfilled or are within the charity's control. Measurement is based on the value listed in the will for pecuniary gifts. provided the estate has sufficient fund5. and on the estate accounts for residuary 8ift& n. Expenditure Expendlture Is accounted for on an accruals basis indusive of any VAT whith cannot be recovered. Expenditure is recognised when there is a legal or Constructive obligation to transfer economic benefft to a third party, it15 probable a transfer of economic benefft will be required in settlement arhd the •mount can be measured reliably. Expenditure on raising funds constst of costs of tradi￿1 subsidiaries and fundraising expenditure. These include the direct costs of the department. induding the running costs of sponsorship. fundraising and events. together with a share of the support Costs of the Royal Academy. Charitsble activities irtdude all costs related to the main purpose of the Royal Academy and include.. dire¢t costs of exhibitions and the associated education prc8rarnme- running the Royal kademy Schools. and the onservation of the permanent collection and the Library. Publicsty costs are allocated to Exhibitions, Royal Academy Schools, Collections and Education based on the income from eath area. Support costs are the costs of departments which are shared by the various activities of the Royal Academy: Finance, Human Resources. Infom)ation Technology. Facilitie5 and 8ovemance costs. These costs are allocated to activities on a ￿15 that is appropriate to the nature of the expendtiure and have therefore been allocated over headcount. Page: 39

The Royal Academy of Arts Notes to the Flnanclal Statements For the year ended 31 August 2022 2 Summary ol siylfi¢ant accounts￿ Icontlnuedl o. Employee beneffts The Royal Academy provide5 a range of benefits to employees, induding paid holiday arran8ement5 and defined contribution pension plans. l. Short term benefits Short term benefits. including holiday pay antl other slmilar non-monetary benefits, are recognised as an expense in the period in which the serwce is received. IS. Deftned benefit p¢nsion plan The Royal Academy of Arts Pension Scheme 1.the Stheme-l is a defined benefft pension 5theme closèd to future accrual on 30 September 2016. Pension assets and liabillties are recorded in line wtih Section 28 of FRS 102. With scheme valuations undèrtaken by independent actuarie5, FRS 102 measures the value of pension assets and liabilities at the balance sheet date and determines the beneffts accrued in the year and the interest on assets and liabilities. Current service costs, toÈethef Wrth the net interest for the year, are allocated to relevant expenditure headin85 ￿thin the SOFA. Scheme a55ets arè measured at fair value at the balance sheet date. Scheme liabilitie5 are measured on an artuarial basis at the balan￿ sheet date using the projected unit method and discounted at a rate equNalènt to the current rate of return on a high-quality corporate bond of equivalent terni to the 5d￿me Ilabilitiek The change in value of assets and liabilities arising from asset valuation. chan8e5 in benefits. actuarial assumptions, or change in the levd of deficit attributable to members is recognised in unrestricted funds in the SOFA wrthin remeasurement of defined benefit pension stheme a55et. The resulting defined benefit pension scheme asset or liabilty is presented separately on the fate of the balance sheet in unrestricted funds. The RLyal Academy recognises an asset for its Scheme to the extent this 15 considered recoverable through reduced contributions in the future, or through refunds from the Sthemè. The trustees of the Scheme believe that the kheme currently meets the minimum funding requirements. The assets of the Scheme are heW completely independently from the Royal Academy. The Income and expense related to the sche￿ is allo(ated entirely to the unrestricted on80in8 artivitie5 of the Group. iii. DelSned contrilwjtion pen4M plans The Royal Academy operates two defined contribution plan5 fry its employees. The contributions are recognised as an expense when tPse are due. Amowts not paid are shown in accruals in the balance sheet. l¥. Tern)Inatlon payments Termination benefits are payablè when employment is tewmbnated by the Royal Academy before the normal retirement date, OT whenever an employee accepts voluntary redundancy in exchange fDr these benefits. The Royal Academy recognises termination ￿1f[ts when it is demonstrabty commrtted to either lil tern)inating the employment of current employees according to a detailed formal plan wrthout possibility of withdrawal or lill providing termination benefits as a result of an offer made to Èncourage voluntary redundancv. p. Admlnlstered funds Investments held by the adrninistered funds are stated at market value at the balance sheet date. Dlvldend income from investments is ￿0￿nIsed on an accruals basis. Page.. 40

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2022 2 Summary ol slinllkant accounUry polkles {u¥rtknued) q. Investments i. In¥•stm•nt prop•rtb•s Investment pfoperties comprlse those held solety for either ther rentsl incorre andlor (aprtal appreciatlon. They are carried at fairvalue. 11. Other Investments Listed investments are 5tste(l at market Value at the year end. The m3rkÈt value of seturities is based on the bld market quotation on the relevant stock exchan8e and investments that art held in untts are stated at the average of the unit bid and offer prices. Vnli5ted inve5th1ents are stated ai cost as no market value ts available. The SOFA includes any ￿alIsed or unrealised gain rK Ios5 durin8 the year. Investment income. including the reLited tax uedit, and interesl on bank and short-terrn dep05its are accounted for on a reteivable basis. I. FlnarKl•l Instfuments Financial instruments are reco8nised in the Rtyial Academrfs balance sheet when it becomes party to the contractual provisions of the lnstwm￿l. Finan¢lal assets and lia￿litIeS are offset. wth the net amounts wesented in the financ4al statements. when there is a legally enforceable right to set off the fetognised amounts and there 15 an intention to setde on a net basis or to realise the asset and set￿e the liability siM￿taneouSlY. Financial liabilities and equity instrnments are dassthed according to the substance of the contractual arrangemènts entered Into. An equtty instrument is any contract that evidences a residual interest in the assets of the Royal Academy after deductiv￿ all of its Irabilities. l. B•sl¢ fFnandal assets Basic finanoal assets, whith indude trade and other reCei￿bIeS and cash and bank balantes, are initially measured at transaction price indui&n8 tran5a¢titin costs and a￿ subsequently carried at aMort￿ed cost less any impairmenl. 11. Otherfinantial assets Othei financial assets. including investments in equity instruments whith are not Subsidiaries, are initial measured at fair value. which is nommlly the transaction wice. Such assets are subsequently CaTTied at fair value and the changes Mi fair valut are retognised in the 50FA. Trade debtors afKI txher re¢eivables that have frAed or detemiinable pajinents that are not quoted In an active markel are classified as"debtors" Oebtor5 are measured at amortised cost less any impaimient. IH. Impalrment of Ihwndal assets Financial assets, other than those held at fair th￿ts￿h the SOF& are assessed for Indlcators of Impaim7ent at each reporting Ènd date. Financial assets are impaired Whe￿ there ts objective evidence thaL as a result of one or more events that ottuffed after the initial reccwiition of the financial asse¢ the estimated future cash flows have been afferted. The impairnient loss is retognised in the SOF Iv. D•r•¢o8nltlon of lkninclal assets Financial assets are dereco8nised onty when the contractual ruhts to the cash flows frorn the asset expire. or when It translers the finanoal asset and substantially all the risks rewards of ownership to another entily. Page.. 41

The Royal Academy of Arts P4ote5 to the Financial Statements For the year ended 31 Au8USt 2022 I Summary of slgnlll¢ant attountlng polides Icontlnued) r. Financial instruments Icontinuedl v. Baslc finan¢lal Hatsllltles Basic finanaal liabilities. including trade and other payables and bank loan5 are initially recognised at transaction price unless the arrangement constitutes a financin8 transaction. where the debt instrument 15 measured at the pre5entvalue of the future payments discounted at a market fate of Interest. Trade payable5 are obligations to pay fof goods or semces that have been acquired in the ordinary Course of business frorn supplier5. These are classified as current lialylitie5 if payment is due within one year or less. If not. these are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amrwtised cost. vl. Other flnandal Ilabil•ties Derivatives. including forward foreign exchange contracts. are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative tontiact is entered into and are subsequently re- measured at their fair value. Changes in the fair value of deriwatives are recognised in the SOFA in finance costs or finance income as appropriate. Hedge accountin8 is not currentty applied. 3 Crftltal actountlry lu*ments and esllm•tk)n untÈrtaknty Estimates and judgments are continualty evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circurnstance5. a. Usefvl economlc Ilws of tanglble and Sntan8lble assets The annual depreciation and amortisation c￿e for frled assets is 5ensitNe to thanges in the estimated useful Economic lives of the assets. The useful etonomic lives are re-assessed annual￿. These are amended where necessary to reflect current estimates, based on technological advancement, future investments. economic utillsation and the physical condition of the assets. See note5 17 and 18 for the carrying value of assets and note 2.h and 2.1 for the usefvl ttonomic liwes. b. Impalrment of debtors The Royal Academy makes an estimate of the recoverable value of trade and other debtors. When a5SÈ5sin impairment of trade and other debiors, management considers factors including the Current tredit rating of the debtor. the ageing profile of debtors and hi5torital expÈriw. c. Deflned benefft pensw)n asset The determination of the assumption5 used in calculating the defined benefit pension scheme asset is the responsibility of ihe trustees of the Royal Academy. with delegaied authority to the Dirertor of Finance. The assumptions are Set with rewd to advice given by the stheme actuary. Page.. 42

Notes to the Flnandal Statements For the year erbded 31 Au8ust 2022 The SOFA pro¥￿e5 the re511ted pri¢xye•r rt%np•ratrrs in tol¥: thi5 not¢ W￿10¢5 p¢rW ¢omparatNes lor eath of tho types of rund5. Pro1￿1 nds 2021 hmds zozi TMal iozi Owati0Th5and leycies General d¢)nionsffom RAT. OthÈr donations from IiAT Bw11n8t￿ Proiert CaialoBuin8 projeci Other projects Donatitins from Friends of the Other don3rions Grant incorne Charitsble actryiD Exhi￿￿.￿$ 5choo15 Librbry Education Other tradingactMtye5 Inccrfne Irom trading S￿￿K11allE5 Sponsorship, rent and othef recelpts Investments 8ank interesi 0fvSdends 35L196 35&196 2.LXKI.(w ify)o.r 16.828 60L474 li.144￿ 9534.394 1,756.765 16.828 f4)L474 10,448.495 1.048.918 2574.682 696.014 1.626.023 953.719 182x03 5.ts.734 3.135,618 2LCV32 ii.lco 82.097 3,135,618 2L091 ILIOD 097 4.￿9,471 2.113,737 4,9YJA71 113.737 462 462 Total Intome 24.395.680 2,32Z.037 1105. 7.905,734 36.728.751 Expen41llwe w: Rai5ingfunds Funttraising Expenoirure from iradin8 Chaiirable3CtNitie5 Other Oonation to RAT olm1wt￿ in vahje of IrY•r5ty￿t prope 13.thql.2371 15.229.6401 10 I17A31￿1} I2.39)￿) 11021AS51 13.04&.23?1 15.229.64O1 121,005,3871 115,3281 I￿.318) 1720.5211 1710,5111 125.701.9641 12.350451 12.757.3Cts•I 30,810,113) t4et 8alnsoth Investments 19.591 119.193 (L￿.284) 16314131 119.193 7.9)5.734 6.057.422 Tt•sf¢rs bett¥een funds 24-26 2.828￿28 229,013 137.0201 la￿20.021) OtherWn5 Tax ¢1¢dit Remeasurementoldefk bethefit pen￿oN scheme asset 137.385 137,385 1.921.(K &92LOth) 3.SKI.129 I403.41C￿l 82.173 4￿85.713 115.B07 Totsl fvnds bmutht forward 85.110,￿5 701.170 3.875,341 6.>J5 6.88O.IC￿ 97,371057 f¥rbd$r¥rfedfryw•rd 88.69).264 672.362 3.471.941 888.478 IL765,819 105.4W864 ' RAT denote5 Awol AodemyTrust Page". 43

The Royal Academy of Arts Notes to the Flnancial Statements For the year ended 31 August 2022 5 Income from other dwatiors funds nds lunds fvnds Total 2022 Exhibitions Schools Colleclion5 Education General - Other 8urlin8tLM Project- Phase111111 Presidents Fund" Coronavirus Emergency Suppwt Fund I"CESF'I Legacles- CESF * 723.071 859,223 689.6( 1.582.294 692.6fy) 250 337.005 776.775 5,141.811 41.769 203,760 214.431 250 151,584 776.775 185,421 5,141,811 41,769 203.760 214,431 Totsl 1.654.680 459,960 6J76m5 8.990.695 2021 Exhibitions Schools Collections Education General- Other 8uriin8ton Projert- SKkler lift Burtin￿on Project- Phase1111 Coronawru5 Emergency Support Fund I"CEWI Le8acies- CESF • 255,555 10.634 350 61.021 721.358 270.121 576.491 525.676 587.125 350 3.378 756.108 250.( s￿55.714 72,357 34,750 250.ofyj 5.655.734 783,gM 842,119 842.119 Total IA148.918 1fi26m3 6A59.453 9534394 • With effect from I September 2018. Council h35 detemined that unrestrirted legacies wsll be Set aside as pwt of the "Presidents. Fund. whith is a designated fund held for the 8eneral purp05e5 of the Royal A&idemy. In Marth 2020. the Royal Academy established a Cof￿avITuS Err1e￿enCY Support Fund l-CEsfi. At its 31 March 2020 meetin& Counol approved that unrestricted legacy inc¢)me received unb"I further notice should be designated to the CESF and used for the gener41 purposes of the Royal Academv. P38e: 44

The Royal Academy of Arts Notes to the Flnancial Statements For the year ended 31 Au8USt 2022 6 I￿orne from grant income Unre5trl(ted R•strlcted lunds fvnds T¢)tsl 2022 Coronawrus lob Retention Scheme Digital infrastructure Exhibitions S¢hoo15 Educa￿On 55.OS6 55.056 980,OC) 980,( I,oco 18.915 15,926 30,151 2.750 17.91S 14,225 2.750 Totsl 996.926 1,086,8n 2021 Coronavlrus Job Retention Scheme Schools Education 2.$46.202 28.480 1546.202 43.063 167.500 14,583 167.S(KJ Total 2574.682 182,083 2,756,765 The Royal Academy took advantage of the GcNemmenYs CoronaWn￿ Job Retention Sche￿￿ I"CJRS"I from inception in March 2020 up until its closure in September 2021. * The Royal Academy received grant income of £98( from the 81oomber8 Philanthropies, LliÉital Accelerator Fund during the year. Thi5 will fund updatin8 the user experience and Infrastructu￿ of the main Royal Academv webslte.. delIVe￿n@ a dy'tal st￿￿•0 for online events: and researching the Royal Academ￿$ requirements for di8h.tal asset management Pa8e: 45

The Royal Academy of Arts Notes to the Finanoal Statements For the year ended 31 August 2022 7 Re5uhsfrom sulMkllaries The Royal Academy ha5 three wholly ovmed trading subsidiarie5.' RA. Enterprises timited. whKh operates a shop and commerce busine55, a ￿$taUranT and cafés. a pLIAKat1￿l5 and art sales knine55 and commerctsl learnin& RA (Arts) Limited. which provides entertainrnent sery￿e$ io the (ory￿rate $￿t01- ar￿ 8uTlinBton House Limited. which raises funds from the corporate sector and indr¥iduals through ticketed events. These cfKnpanies have entered into deeds of covenant to donate their distributsble proffts to the Royal knderny. The regi￿ered offKe5 of al subsidiars Is 8urlington House, Piccadilly, Lon<kJn. A summary ol theiT tradlng results is shown bek￿. Avdiled financlal statements lor these subsidiai6es are filed annualty with the Registrar ol Companies. Profrt and Lo$5: IIA (Arts) LlrnSted House Llmlted 1022 2021 2022 2021 2022 2022 2021 Turnover 9J83.026 6295283 4.120.885 1.954379 822.736 1.133.364 15A50 C05t of sales Admlnistrati¥e expenses 13.645,1521 12,948,110) I2.301.￿lI 183J031 129.8811 1613.2391 13OZ3JJ381 12.S57WI 12.644.446) 1404.9411 1224.4481 160.4S41 128.8751 Total expense5 16,W1901 1SJ05.753I 14.946,4361 14E8.7441 1254.3291 1673.6931 128.8751 Net resdt I714￿6 .530 1825.5511 L465.6J5 568.407 459ffi71 113,0251 015tribution tothe Royal Academy 11.912281) 11865MS1 1568,4071 146461 No charge io raxatlon wll arise a5 the compontes ha* eniered into deeds of cobtnant to donate their di5tllbutabk profits to the Royal Acaderny. Balan¢e sheet: Flxed assets Intanglble fixed assets TaTh8(￿e fixed asset5 3.057 3,057 18.990 28.431 21.727 Totsl f￿1 assets 22JJ47 50.158 Stock Debtors Cash and cash eq￿alentS 961.73Q 1,007,903 I17￿1$ %1.730 707.21X 4388 916.916 376.501 18,721 292,170 209.159 8.525 242.104 53.2CKI Total cufftnt assws 2.187321 I￿3316 1.312.138 292.170 209.159 61.725 295,304 Curr•nt11obllltSe5 Credttors- amounts falling due wfjthin one year Net current ass•tsl Illabllitlesl Total a55ets Itss total liabllities 1124S.1811 IlJ91JxII 12,187.8431 1292.1661 1209.1551 161th251 1308.2291 157JfjOI {58J1641 1875.7051 112.9251 1359131 136A1171 1825.5471 100 112,9251 Capllal and remrws Called up Sha￿ capital Profil and1055 reserves 100 loo 113,0251 {%.021) 136.0111 182S.SSII Total equlty 135,913) 136J)A71 1825.5471 IOD 112,9251 • FollowsTr8 the effergence from the Covi&19 pandemic. R.L Enierprises Limited rnade a profit for the year of £789.530 reducin8 the rtet liabiltties positv)Th to £36.017 at thÈ baL8nce sheet date. Since the year end. the company ha5 continued to profr(abillty and ha5 returned to a net assets ￿￿51t￿n. Page: 46

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2022 Support t¢￿$ 2022 Flnanre Total Exhibitions Schools Collections Education Publicity (note 101 Fundraising (note 91 I,C68,297 224.9)4 182.735 196.791 435.752 337,357 6￿j,917 126.509 102.789 110.696 245.112 189,764 199,136 41.923 34.(￿3 36.683 81,226 62,885 1,802,965 379.571 308.402 332.125 735,420 569,357 2￿,352 54.811 44.534 47.960 106,196 82,216 3,931,667 827.718 672.523 724.255 L603,706 l241,579 2022 total 2A45A36 L375.787 455.916 4,127.840 596.069 9.OOIA48 Personnel costs include legal, profes9(￿al and consultanoi costs of £4.05012021: £145.2841 pertaining to the restructuring which took Pla￿ in 2021. Finance costs indude interest payable and similar ¢har8es of E438,370 12021= £483.7031. 2021 nan Total Exhibitions Schoo15 Collecti¢)ns Education Publicity Inote 101 Fundralsing Inote 91 1.033.603 209,514 195.546 237.449 432,9% 377.125 578.248 117,212 IC8.398 132,841 242.239 210.982 277,797 56,310 52.556 63.818 116.374 101.358 1.613,185 326.997 305.197 370,596 675.794 588,594 227,899 46,196 43.116 52,355 95.471 83,152 3,730,732 756.229 705,813 857,059 I,S62.874 1,361,211 2021 totsl 2,486,233 1,390.920 668,213 3.880.363 548.189 8,973,918 9 Fundralslng 2022 2021 Direct fundrai￿n8 costs Support costs Inote 81 1,52L278 1.24L579 1,680.026 1,361,211 Totsl 1761857 3,041,237 10 CharStable a¢lMtles Support Publldty costs li) ToQ•l Exhltrftions Schools Cdlections Education 10.216,891 1.173.054 991.891 878,144 3.931.667 827.718 672.523 724,255 4.054.085 11.120 7.841 84,851 18,202,643 1011.892 1.672.255 L687.250 Totsl 13.259,Xl 6,156.163 (note 81 4,157,897 23,574,040 Page.. 47

The Royal Academy of Arts Notes to the Financial Ststements For the year ended 31 August 2022 10 Ch•ritslAe a¢ti¥itles Icontlnued) Supptyt PublSdty costs qi) 2021 Total Exhiblt1c￿S Schoots Collections EdLKation 8.475.416 1.202.129 1.123,376 1.097,472 3.730,732 756,229 705,813 857.059 3.719,587 25,020 13,167 97,387 15.925.735 1,983.378 1,842,356 2,051,918 Total 11.898,393 6,049.833 3.855.161 21,803,387 Exhibitions expenditure indudes the direct costs of mountin8 all loan exhibiti.ons and the Summer Exhibition al￿ all associated costs. such as curatorial staff, art handlin& securty. press and box office. i. Publlcfity wsts c(*nprise direct publi¢ity costs and an all(tstion of support costs anaW as follows: 2022 2021 Direcr publtcity costs Supwt costs (note 81 2.554,191 L603.706 2.292,287 1.562,874 Total 4.157.897 3,855,161 11 Net Income / lempendlturel 2022 2021 This is statèd after charging: Amortisation Depreciation Auditor5, remuneration= External auditor5 Audit ser¥ices- group undertakin85 Audlt services- defined benefit scheme Other services Interest payable and similar tharges (see note 81 218,730 3,422.745 417,980 3.482,493 58,925 8,1 14,635 438,370 51.305 8,650 11,729 483,703 External auditors other services relate to tax ¢<)mpliance and other advice. The total lease expenditure incurred in the year wa5 £170,62312021: £138.9311. 12 Role of ¥olunle•rs Like all charities, the Royal Academy. uses a team of volunteer5. In 2022 the Royal Academy engaged 1312021.. 1481 volunteers across both its Learning and Collecti￿5 departments. This was much reduced from 2021 duè to minimised actiwty as a result of the re5tructUfe and CoMd-19 pandemic. In accordance with the SORP. due to the absence of any reliable Measu￿rnent basis, the contribution of these volunteers is not recognised in the financial statements. Page.. 48

The Royal Academy of Arts Notes to the Flnancial Statements For the year ended 31 August 2022 13 Offkers. and Counc51 membevs, remunerat 2022 2021 Officers, remuneration. exduedtvd pension COntribut￿nS. 15 as follows.. President Keeper Secretary and Chief Exetutive Treasurer 67.660 65.340 50.000 183,689 191.244 Total 339,029 Remuneration for officers is set by the People and Aemuneration Committee. One officer12021: one) receNed pension contributb)ns totalllng £19.12412021: £18,369). Council members are onty reimbursed for expenses incurted in thÈ ￿rfornianCe of their duties. except for those individuals who a￿ remunerated for their duties as officers. Two 12021.. one) truslee5 received reimbursed e¥penithture of.. 2022 2021 Travel Other 1.055 lJ)97 249 1,721 Total 1152 1,970 Trustee indemnlty insurance costs for the year totalled £14.24612021: £25.0631. 14 Staff costs 2022 2021 Salaiies and wa8es Social security costs Redundancy and iermination payments Pension contributions- defined contribution stheme5 Pension sèNice income- defined benefit scheme 10.775.933 IJJ30,156 12.692 760.007 1140,0001 11,165,470 1.116.478 1,515,921 823.399 iioi,0001 Total 438.788 14520,268 Staff costs include payTdl for temp(Kary as well as pemianent staff. As disdosed In note 6, Brant income of £55.05612021: £2.546,2021 was daimed in respert of the Coronavirus Job Aetention kheme. The organisation undertook a significant restru¢wrin8 in 2021. The total cost of the restructurlng was £2.2m. In addition to the El.Sm redundancy and termination payments in 2021, a further £0.2m of redundancy ¢osts were incurred and re¢har8ed to the Friends of the Royal Academy. There were further holiday pay, social security costs and pension contributions of £0.4m and legal, professi￿al and whsuliarb¢y ¢OSts of £O.Im lsee note 81. Due to the impact of this. salaries and wage5 and the number of full-time equlvalent employee5 have reduced ￿￿nifIcantIV compared to last year. The key management pefsonnel of the Royal Academy. and Group. comprise the Senior Leadership Team. trustees and offbcers. Total iemuneration of key management personnel durir% thè yèar was £1,267,89112021: £1,186,063). Page.. 49

The Royal Academy of Arts Notes to the Finanaal Statements For the year ended 31 Au8USt 2022 14 Staff costs {contlTh*dl The number of employees, Includi￿ offters. whose remuneration exceeded £60.(MJO. is shown below.. Band: 2021 No. 2021 No. £60.000 to £69,999 £70,¢JOO to £79,999 £80,000 to £89.999 £90.000 to £99,999 £IIO,000 to £119.999 £120.000 to £129.999 £130,000 to £139.999 £180,LK)O to £189,999 £190,IXJO to £199.999 Pension contributions for the above em￿oYeeS were E156,176 {2021.' £161.9321. The averagè number of pernianent employees and fiAI-time equiwdlent I'FTE") pemianent employee5, including offI￿rS. during the year was.. Headcount 2022 2021 No. 2022 No. 2021 No. Charitable activities Fundrai51n8 and publidty Trading activities Governance Support 119 55 120 58 ioi 56 38 5Z 81 Totsl 312 269 The number of part-time stsff employed by the Royal Academy varies throu8hout the year, depending on the exhibition pro#ramrM. 15 Taxatlon The Royal Academy is entitled to a Lix uedit under the Museums and Galleries Tax Rel￿f scheme from l April 2017. 2022 2021 Taxation credit For the current year - Adjustment In respect of prioryear 340,M9 32.205 124,332 13,053 Total 372.854 137,385 Page-. SO

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2022 16 Herltage assets The Royal Academy hobds assets that fall ￿der the definition of "Hèrit4È Assèts". These fall inio three broad collections.. The Work5 of Art Collection, The Royal Academy Library and The Royal Academy Archive. Each of these is consSdered in turn. All items in these collections a￿ available io ¥fiew by appointment. Items are also from time to time included in exhibitions at the Royal Academy. as well as being loaned out to other exhibit(Ys. The Works ol Art Collectlon The Works of Art Cdle¢tion ¢on%sts of works of art and other objects of historic. artistic or associational significance owned by the Royal Academy, namely: paÉntin85. sculpture lincludin8 rnedals, dies. tameos. and inta8lio Eemsl- Ikawing5: artlSt5' 5ket¢hbook5.' indiwdually issued prints- photographs.. plaster casts lincluding pastes of gems).. historic skeletons relating to teachin8 in the Royal Academy Schools- objert5 01 memorabilia, including artists, tools and materials,. ￿stOriC and silver+late- htstorlc items of fwnItu￿.' picture frames,. and certain fitting5 and fixlures within Burlington House. The Royal Academy holds around 990 paintin8s in its permanent collection and over 25.(￿ prints and drawing5. The majority of works and objects in the collertion5 date from thè foundation of the Royal Academy in 1768 to the present day. Exceptions include the Toddei Tondo. the only marble by Michelangelo in the UK; early copies after the Old Masters, such as those by GiampTretrIw￿, Rosso Florèniino and Sir Jamès Thornhlll- as well as some Prints and drawin85. The core ol The Works of Art Collection is the Diploma Works. These are 8iven by Atadèmitians on election to the institution and are predominantly by British artists and architects. Other works of art We￿ purthased. bequeaihed or given to the Royal Academy and range from drawings to plaster casts and from photographs to paintings. There is a150 a cdlection of silver8iven to the Royal Academy by Academlcians. which is of historical importance to the Royal Academy. The Royal Academy ilbrary (Spedal B(Ks Collertion) The Library comprises the Historic Books Collection dating from ihe 16, century io approximately 1920. and the Special IIIu5trated Books Cdlertion. The Royal Academy A￿h￿¥t The Archive holds papers and documents and copies of elertrLMic correspondence relating to the Instltution's history as well a5 artists, ￿tter$ and archNes. The Archive also includes photographic prints. transparencies, ass slides and negatives. films and videotspes which relate to the history and activities of the instltutlon. More inforrnation about the Royal Academ¢s colledion is available at www.racollection.org.uk. CapItall￿tIon of the folertions In the opinion of the trustees. reliable information on cost or value is not availalAe for the Royal Academy permanent couection. This is owin8 to the lack of reliable infomiation M pur¢hase cost- the lack of compwable market values.. the diverse no￿re of the objects.. and the volume of items held. The collections have a significant intrinsit valuè rÈlatinE to the way they pro**ide a unique insight into the hlstory of art and the study of art over the past 250 year5. The manrEr in which items are 8iven by Academicians makes valuation of these items difficult as thtrre is no origfinal cost to the item. In additbon there is an intrinsic value to the collèctions as an embodiment of the history of the Royal Academy as an institutlon, which would also be far too subiectNe and unique to pla¢e any rèliable value upon. For this reason. thè permanent collection, large proportrons of which were ￿"fted to the Royal Academy at nil cosL are n¢ornparable in nature and are not recognised as assets in the Royal Academy's balance sheet. Page.. 51

The Royal Academy of Arts Notes to the Flnandal Statements For the year ended 31 Au8USt 2022 16 Herlia8e •55ets {continued) A¢quisitions and dlsposals Oiploma Works are proposed by newly elerted members In discussion with the Dirertor of Collections and Learning. and acce55ioned into the tdlection following appr￿al by Council. The approv31 of non4iploma work5 Iby purchase. bequest or donation) is by the tjirecior of Cdlertims and Leamin& in consultatlon with the relevant curator. If the acquisition is more than £5,rKMJ in value. a case for accessioning must be made by the Dlrector of Collecbon5 and Learning to Counul. All acquisitions are re￿rted annually to Council by the Director of Collertions and Leaming. The list is subsequentty submitted to Council as part of an annual report and the tjrector of Collections and Learning attends Council to any matters arising from the report. Disposals will only take place in accordance with the Acquisitions ar￿ Dis￿315 Policy. No rfisposa15 were made in the year. Objects will only be deaccessioned by way of exthange lirt the case of Diploma Works) or rf thère is irreparable damage to or total 1055 of an (￿ject. Oue to the accreditation by the Arts Coundl. and the Royal Academy'5 internal Pfo¢¢dures and policies Idescribed under"Collections managemenf. below). disposa15 can only be for"financially Motivate￿ reasons in exceptr'onal ur¢umstan¢es. Any such dtsposal must be as part of wider review of the collert1￿, and then proceeds must be used only for the benefit of the Collection. In the finanual year. Oiploma Works were wesented by Amanda Levete RA and Jane and Louise Wilson RA. Gifts made to the Royal Academy in the cu￿ent financial year include a palnting by Peter Greenham valued at £4.CLIJ and a box set of 64 woodcut prints by Christopher Le 8run PPRA valued at £32,CXJ) in total. No gifts in this financial year included any individual Works vler the value of £IO.C(Q. Valuations are made at fair value. either provided by the artist or their gallery or based on an a55essment made by the curator taking into consideration current markèt values. The Collecti0Th5 Development Policy CCNerirvd acquisitions and disposals is available for revlew the Royal Academy's website wwM.royalacademy.org.uk/pa8elcolkntions-and-research. Preservatlon The Royal Academy 15 committed to the preservation of its Collections. It aims to ensure the longest possible life of the Collertion5. This includes security. financial. en¥ironmentsl. storage and stafhng that all help to preserve thè collections for posterity. Works of art are ordinarily stored and displayed in conditioned spaces. Some sculpture is stored in spaces without environmental contrds; however, these have proven to be naturally Stable environments. The Royal Academy complies a5 closdy a5 It 1$ able vnth BS 5454:2LXKJ "Recommendation5 for the Storage and Exhibition of Archival Oocument$ 7.3" for the storage of its archives. Some items are held off-site in specialist For the works of art. most con5eryator5 employed by the Royal Academy are on the ICON ConseThation Register. For other areas of the collettions. a variety of conservation experts are consulted. CollectSoM manaiefflwii The Works of Art Colleaion. Speoal Books Collection and Arthive are catalogued in a series of discrete but interconnected databases. each fully Conformi￿ to their ￿leVant professional stsndards. l.e. Spectnjm for museum objects.. AACA2 and MARC21 for book5.' and ISADIGI for archives. The three databa5e5 are linked to a series of shared authority file5 and thèsauri agalnst which tem￿ such a5 personal name5. corporate names. materials and techniques, and production r￿e5 must be validated. This ensures consistency in data entry and in data searche& The Collection. Library and Arthive are designated as cdlections of natK>nal importance as awarded by the Arts Council in 2011. In order to meet the stringent requirements for this award, an extensr¥e Ilst of procedure5 and policies for the management of the collection. informed by national￿ and intemationally recognised standard5, were approved by Council. These documents can ￿ consulted in the Collections, Office. P8ge: 52

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2022 16 Heritsle assets lU￿1n￿ed) Analysis ol h•rita8e ass•ts (Group and Royal Acadthnyl Woth of art 2020 2021 2018 2017 Carryin8 amount at I September 1391110 1.392,110 1.142.110 679,CQ) 391,CfXI Purchases Gifts 14,360 448,750 250.1)XI 288.L￿1 Carrying amount at 31 August 1392.110 1.392,110 1,392.110 1.142.110 679,CKX) 17 Intan8lble flxed assets Intan￿'ble assets include the Royal Academy's website and intranet costs. core system 50ftware and R.A. Enterpxises Limited's Epos, e-aynmero arKI 5t¢<k management software. a. Group At 31 August 2021 and 31 Au8iJSt 2022 2,S72,223 Amortlsatlon At 31 August 2021 Charge for the year 2.259.786 218,730 At 31 August 2022 2,478,516 P4et book v•lue At 31 Au8U5t 2022 93.707 At 31 August 2021 312,437 b. Royal Athidemy Cost At 31 August 2021 and 31 August 2022 1,948,495 AmortSsatlon At 31 August 2021 Charge for the yèar 1,664.489 193.356 At 31 August 2022 1,857,845 Net ljook Value At 31 August 2022 At 31 August 2021 284,1K Page.. S3

The Royal Academy of Arts Notes to the Financial Ststements For the year ended 31 August 2022 18 TanÈlble fixed assets Asset5 in Buildlni ¢ourse of •mprovÈmÈnts construrtlon xtures. Motor fittin￿ and Kles equlpmtnt a. Grow> Total At 31 August 2021 Additions Reclassificatlons Transfers to 6 Burlirwon Gardens Disposals 23.669.638 3.8￿.540 479.134 3.154,234 503,680 1503.6801 11.446,5471 58,629 24,LI,195 51.616.002 178,041 3.8JI.409 11.4146.5471 1258.4391 1258,439) At 31 August 2022 24.652.452 5.010,546 58,629 24.(￿).797 53.721425 DeprecSatlon At 31 August 2021 Dlsposals Charge for the year 8.259.656 58.629 13543.829 21.862,114 1258,4391 1258.4391 2.131.8% 3.422.745 I.2￿1￿49 At 31 AugLSSt 2022 9.550.505 58,629 15.417,286 25,026,420 Net book valut At 31 August 2022 15,104947 5mO.$46 8,W,511 2(696.￿5 At 31 August 2021 15,409.982 3.806.540 10,537,366 29.753.888 Royal A(ademy Awts in Bulldkng course of Fl¥tures Motor frttIn￿ and hldes equipment Total At 31 August 2021 Additions Reclassifications Transfers to 6 Burllngton Gardens Oisposals 23.407.236 479,134 503.680 3,794,411 3.154.234 1503.6801 11,446.5471 36.944 23.651,563 50.890,154 178,1)41 3,811,409 IL446,5471 1258,4391 1258,4391 At 31 August 2022 24,39J,0g) 4.998,418 36.944 23.571.165 52.996,577 Depreclatlon At 31 August 2021 Disposals Charge forthe year 7.997.254 36.944 13,123,792 2L157,990 1258.4391 1258.4391 2.129.159 3.420,008 1.290.849 At 31 August 2022 9,288.103 36,944 14.994.512 24.319.559 Net book value At 31 August 2022 15,101,947 4,99&418 4576,653 24677018 At 31 August 2021 15.409.982 3.794,411 10.527.771 29,732,164 Page: 54

The Royal Academy of Arts Notes to the Flnanclal Statements For the year ended 31 Au8USt 2022 6 8urlliWii Gard•ns IFreehold woperty) 6 8urlln8ton Gardens Group and Iloval Academv Cost At 31 August 2021 Capital Goods Scherne adjustments Transfers from assets in course of construction 65.201.863 11,5081 1,446,547 At 31 Augvst 2022 66.646.902 In the opinion of the trijstees, based on a rdluation as at 31 August 2021 by an Independent thlrd party. the open market value of the Royal Academws interest in 6 Burlin8ton Gardens exceed5 the book value bv approximately £8.9m. The Royal Academy would have no liability to t3xats.on rf the asset was sold at open market value ¢)n the basis that the proceeds were used to further the company's charitable activities. d. 7 Pembroke Studlos Iln¥eslment prnpertyl In 2020, the RA Tecwed a donation of £2.2m for the purchase of 7 Pembroke Studlos for £1.65m. with the balance to be used for other costs of purchase and the ongoing repairs and maintenance of the property. A5 part of the gift the￿ is a requirement that the artist who has been using the Studio since 2012 is able to have exclusive, rent free use of the Studio for as long as she is able to continue to actively use it as an artist up to a maximum of 25 years. At the end of this period the Royal Academy has the right to use OT dispose of the studios and use the proceed5 for its general tharitable purpo5e5. The completion of the purchase of the studio took place bn September 2020 for £1.65m plus legal and professional costs. A significant refurbishment Wa5 completed in 2021. suth that the totsl cost a5 at 31 Au8U5t 2021 wa5 £1.9m. Group and Royal Acad•mv Studlos Falrvalue At 31 August 2021 Additions lat CQ5tl Dimlnution In value due to restrirtion in use 1,155,CQO 8,173 18.1731 At 31 August 2022 1.155.000 As the use of the property by this artist ts not for the Royal Academrfs charitable purposes and the property is primarily held for its capital appreciation. it is bein8 accounted for as an investment property. The CharKties SORP require5 that investment properties are measwed initially at cost and subsequently at fair value at the ret)ortir4 date. Based on a Valuati￿ as at 31 Au8USt 20Z2 by an independent third party. the cuffent open market value (with vacant possession) of the property is El.65m. However. due lo the requirement for the artist to be able to use the property rent free for up to 25 years from September 2020, the valuation on thrs basis is mu¢h lower at £1.155m. In accordance with the Charitles SOAP. this lower valuation is deemed to be the fair value for accoufiting purposes and the dimnution in value due to this restriction In use has been ￿COgnise(l as "other expenditure- in the SOF Pa8e.' 55

The Royal Academy of Arts Notes to the Flnanclal statements For the year ended 31 August 2022 19 Other investments Group 2022 Royal A¢ademv 2022 2021 2021 Investments at market value Investments In subsidiaries at cost 1.741057 1.870.089 1,741057 1,870,089 Total 1.741057 1.870.089 1.742.165 1.870,197 The Royal Academy benefi0a1￿ owns all of the called up share capital of RA (Artsl Limited1028363641. RA. Enterprises ￿mited 1016663331 and 8udington House ￿Mited 1022161041. each of which is registered in England and Wales. See note 7 for the financial results of these entities during the year. Movement In markèt fdluÈ of Investments: 2022 2021 Market value of Invesiments at I September Additions Unrealised Ilossesl18ains ¥870.089 925,000 138,784 1128.0321 Market Value of investments at 31 Au8U5t 1.742.057 1,870,089 Market value of in￿tments by type: 2022 2021 Fixed income Equities Property Altemative investments Liquid assets 155.S58 1.104.729 111.464 278.819 91,487 112,932 892,992 45,240 110,151 708.774 Total market Value of investments IHi5tlWiCCQ5t of The5tments £1.70)￿￿1202I.. £1,7CrfJ,CO)11 1.741057 1,870,089 Investments are held under management with Sarasin & Partners LLP and are Invested in the Sara5in aimate Artive Endowments Fund. The fund seeks to provide 8rowth {through increases in investment value and income) of 4% per year more than the Consumer Price Index over a rolling five year period. It has a global multi. asset portfolio with an integrated socially responsible investment policy that also favours investments that may benefit from a move to a lower carbon econryny. The fund will not invest in tobacco and will also avoid imieslment in companies that have more than IO% of thelr turnover in armaments, gamblin8 and wmography. The fund has additional restriction5 including no investment in companies with 5% or more of their turnover in¥ofved in the mining of thermal coal or tsr sand5; following en8a8ement. no investment in companie5 that needlessty emit Significant quantities of carbon into the atmosphere. or whith do not take seriously the transition to a low carbon economy- and qualitative judgments to be considered on a regular basis by the funds aimate Active Adviscry Panel. Page: 56

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2022 20 Debtors Group 2022 Royal A￿dernY 2022 2021 2021 Trade debtor5 Royal Academy related entsties Roy31 Academy Trust Taxation Stsff loans Sundry debtors Prepayments and acuued income 1343,757 434,597 729J)49 L363,239 39.195 497.186 6,977 L040.184 4016,292 259,712 1.812.132 435,941 582,734 6,718 328,927 764.413 407.388 582,734 6.718 532.924 901.373 497,186 6.977 1.245.389 1,214,697 Total 430&075 2.865.734 4.692.122 4.IgKI,577 21 Credltors. amounts falllnB w1th5n one ￿r Group Royal Academv 2022 2021 2021 Bank loan Revofving credit facilities Trade creditLYS Royal Academy related entitie5 The Friends of the Royal Academv Taxation and social security Jndry creditors Accruals Deferred income lil 219 219.6(M) 3,7W,I 1.040.343 219.600 219,61XI 3,7CA),( 863.549 308,984 81,635 275.215 118.721 1,351,383 1,673,776 729ffi31 246.433 577231 276W6 IAIS.446 IA17.270 81.635 4103,667 120.3(P) 1.477.519 2.108,546 246,433 425,051 176,597 1395.351 1.156.684 Total SJ)7I057 9,151,619 4,221534 8,592,863 A Masterplan Revolving Credit Facility of £5.Om was taken out in May Z017 to manage workirvd Capital requirements in relation to the Burlington ProjecL The £5.ckn facility runs to June 2023, thereafteT reducin8 to a £3.Sm commitment to 31 August 2025. The facility Can be drawn down in advances with a mirtlmum value of £0.5m. Each advance is repayable after one month- at the end of the one month period the aLfvance can either be rolled over for another one month period or repaid. As at 31 August 2022 thi5 fac4Iity was not drawn down12021.. £3.7ml. An Operatr'n8 Revoknng Credit Facility of E2.5m was taken out in Marth 2018 to mana8e operating workln8 capital requirements. The £2.5m facility runs to March 2023. thereafter reducing to a £1.5m commitment to 31 August 2025. This facility can be drawn down in advance5 with a minimum value of £0.15m. &milady, eath advance is repayable after one month; at the end of the one month periLNI the a￿an￿ can either be rolled over for another c￿e month period or repaid. As at 31 August 2022, this faality was not drawn down12021'. Page: 57

The Royal Academy of Arts Notes to the Flnancial Ststements For the year ended 31 August Z022 21 Credltors- amounts falllne due wlthln one year Icontlnuedl l. Deferred Income in 2022 includes ticket 5ale5 and sponsorship Income for exhibitions in the next financial year, including Willtiorn Kentridge, Moking Modernism and Herzog & de Meuron and is analysed as follows: Amount added Amount released Carrfed forward lorward Deferred Income 2022 2.108.546 1.317,270 12,008,5461 L417,270 Deferred income 2021 2.071,354 2.108,546 12.071.354) 2,108,546 22 Credltors- amounts falllnB after more than one year Group 2022 Royal Academy 2022 2021 2021 ank loan Unsecured loan 381723 602,323 iO.fy)O,{M￿ lo,￿.1￿() 382,n3 602.323 lo.000.(￿1 io,o(o,c Total 10.381723 10.602.323 10382.723 10,602,323 Creditors indvde amounts not wholly repayable within 5 years as follow5: ul￿e¢Ured loan io,wi,w io.&J).(KxJ iO.000.CW iO,OC¥),C The bank loan was taken out in 2rJ)9 and is repayable in instalments by 2025. Interest of £12.990 12021.. E12.7491 was charged in the year. Irh December 2014, the Royal Academy entered into an ￿Se(￿red £IO.Om loan faciltty agreement. This amount was advanced in December 2014 and is repayable in ten instalments of £l.Om eath from 2035 until 2044. and has a fixed rate of interest of 4.21% p.a.. faolity was used to fund exceptional operating costs during the 8urlington Project construction phase and the plant UP8radelrenewal Pr￿TamMe for conditioning the 8urlington House galleries. Inte￿$t of E421.QUI12021.. £421.&x)} was charged in the year. The Roy31 Academy remains compliant with its various loan co¥enants. Page.. 58

The Royal Academy of Art5 Notss to the Flnanclal Statefflents For the year ended 31 August 2022 23 Amlysis ol net a59ets by fimd Endowment fvnds Burli￿4 Prolett fund5 funds G•neral Pen Total a Group Investments Heritage assets Intangible a55ets Tan8ible assets Current assets Current liabilities Long tem) liabilities Pension asset 792,110 367,736 1,392.110 582.211 1.742.057 1,392.110 93,707 96.497.￿7 22.788.293 Is￿71.057) 110382.7231 6W4,IXIO 93.707 9).673.160 60,303 IOB58.448 14,945,424) 110.382,7231 4.669.747 1.155.( 10,748,925 1.120,617 1126,6331 6.444,O¢XI Total 792.110 IS.292ryJ 4m5A63 612￿14 86.297.168 113,503,194 b. Royal Academy Inve5tment5 Heritage a5set5 Intangible assets Tangible assets Current assets Current Ilabilitles Long term Siabililies Pension asset 792.110 367.736 L392.110 582.211 1,742,165 1392,110 90.650 96A78,921 21,996.726 14,222,534) 110,382,723) 6.444.0￿ 6A44,0ty) .6SO 90,654.174 60.303 10.066.881 14,095,901) 110.382,7231 4.669,747 1.155.1)xi 10,748,925 1.120,617 1126.6331 Totsl 791110 15.292.039 4.035.463 641514 86333.189 6A44.0(N) 113.539.315 24 Anaysts ofend¢)wmert funds Group and ftoyal Acadwry In¥estment Unapplied totsl fund retwn Opèfvi￿ man4èts allocated lets ta Income Closlng funds Dunard Scholar5hip.' - Trust for investment - Unapplied total retum Exhibitions fund.. - Trust for investment - Unapplied total return 625,C 91.515 625.( 13.PJ9 151,IYJ91 126,6171 Iso,c 21.%4 I50,￿ 3.312 112.2641 16,3881 Total 888A78 1633631 {a3J105} 792.110 Dun¥d Scholarshlp.. the hjnd was established in 2020 by a donation of £625,rx(I from the Dunard Fund. It 15 held a5 a permanent endowment and is being accounted for on a total re￿rn basis. The purpose of the fund is to endow a student scholarship at the Royal Academy Schools in perpetuity- b. ExhlbStSons fund.. the fund was established in 2019 by a donation of £I50,c￿ from thè Thompson Family Charitable Trust. and reclassified as pemianent endowment in 2020, and is being accountèd for on 3 total retum basis. The pul￿￿e of the fund Os to SUpp￿t on6￿n8 exhibition costs from investment returns. Page: 59

The Royal Acade￿ olArts Notes to the Flnandal Statements For the year ended 31 August 2022 25 ADs15 olre5trKted Iwds Group R￿ACademY unty￿1¢d totsl return fr￿n Falr value Translers fvnds oihetlunds Bloornber&lund 7 Pembroke Studlos Herit88e assets 16 Dunard Scholarship 24. ExhibitK)ns fund 24.b 8uilifi8ton Pftsje£t 585.X17 1.167.059 1123L2361 980.to) 1172.2791 (7.0931 1175,8811 345,249 807.721 1.420.358 1.391110 5&472 13.553 11.446.547) 15.291039 1.457.504 1.392.110 29.855 7,165 11.765,819 5,141,811 18.1731 26.617 1169.0141 Total 15.237.760 8.266JYI 11579WI 33 {8,1731 Ilh214281 19.317.502 . Othef fuThds imdude d￿all0￿ of £415,889 12021.. £969.4981 [ecV￿ fri)m the Royal kademy TrusL other donatians of £1.734.24412021.. £1.203.7791 Irants of E996.92612021- £182.(￿3) receNed f￿ sperific arKI general atti}￿tIeS as disdosed in r￿$ 5 and 6 respectNely. The dowg balanttrdatt5todfrAknriry Wtritted funds: The Ase deli%*red onsiie at the Roy PaRe'. 60

The Royal Academy of Arts Notes to the Financlal Ststements For the year ended 31 August 2012 25 Analysls of ￿trIrted funds Iwntinuod) Ounard S¢hoc41s Fund £79.63312021: £70.8341: established in 2020 from a donatlon of £333,333, wtth a total of £l.CQ).OCrf) pledged over three years. Afuther donation of £333,333 was received in 2022. The fund provides £50,OC(I per annum towards Royal Academy Schools bursaries and £283.333 toward5 Royal Academy sChL￿ls tutors, salaries. b. Bloomber8 Dlgltal Accelerator Fund £807.72112021.. £nill'. established in 2021 from grant income of £980,(X)O from the Woornberg Philanthropies, tAgital Accelerator Fund. This will fund updatin8 the user experience and infrastnjcture of the main Royal Academy website,. delivering a digitsl studio for online events- and researthing the Royal Academls requ1￿ments for di￿al asset management. The project is due to complete In 2023. ? Pembmke Studlos: the fund was estabI￿hed in 2020 from a donation of £2.159,8841$2,M.7201. of which £1.650.C(NJ was used to purchase Pembroke Studios in Sèptember 2020. an a￿"st'S studio in London, with the balance of the fund to be used for the legal and professional fees associated with the purchase and repairs and maintenance of the property for a period of up to 25 year5. It W35 the donorfs wish that an artist. who has been using the studios since 2012, should be able to continue to have exclusive. rent free use of the studios for as lorvd as she is actively and regulady using the studios for up to a maximum of 25 years. At thè end of the said period. the Royal Academy wll have full and free use of the studlos and have the right to sell the studios and apply the pr¢xeeds of the sale towards its general charitable purposes. d. Burlin8lon Proiert - Phase I was Completed in 2018. with all 8urlington Project - Phase I restricted and designated funds being transferred to unrestricted fvnds as specific idefttrflable assets were brought into service and as such, the restrictions on these funds have been satisfied. The remaining restricted funds are in respect of Phases11 and111 and other projects, which form part of the overnll Burfington Projert (see note 301. 26 Analy515 of desiBnatsd funds Gmup •MI Iloyal Academy OpenSng lunds Inwstment (loslng loss fund5 Total designated 672.362 517.927 1504,9861 142.7891 641514 Council have destgnated the funds detailed bebw out af unrestricted funds.. Schools aythltect furKI £77.24812021". £82,725).. the fvnd was estat4ished In 2018 from a legacy of £88.039. The funds are held on investment wtth Sarasin & Partners LLP. wrth the investment returns being used to fund an annual event as part of the RA Architecture Programme in Sir Richard Maccormx's rtame. Schools annual trnvel prize £14,1)xI12021: E16.(yxII". a le8acy of £20.LYKI was receNed in 2018 and de5i8nated s an annual travel prize of £2.CKI) for students of the Royal Academy Schools. The first priie was awarded in 2018, further awards in 2019 and 2022. It is anticipated this will be spent over a period of Ioyears. Student support lund £nil12021'. £26,828).. due to the impact of Covld-19. donations totalling £SS,636 received in 2020 were designated towards a supportfund for students of the Royal Academy Schoc4s. Future Academy £551,26612021.. £546.8091: unrestricted donations and legacies receNed in 2019, 2020 and 2022 have been JeS￿nated by Counal for expenditure on the Royal Academy Schoo151£33,8281, the Collection 1£14.0161, educats'on1£5001 al￿ the P￿s￿dents. Fund1£502.9211. which is held to support the Royal Academv in periods when there is unexpected volatility in income or expenditure. Page- 61

The Royal Academy of Arts Notes to the Flnancial Ststements For the year ended 31 August 2022 27 Admlnlstered funds The Royal Academy ho5 six fund5 which have not been consolidated wtthin the financial statements of the Royal Academy, on the ba54$ that while the Royal Academy is administering the funds, it is not the ultimate beneficiary. However. as the funds are administered by the Royal Academy. these have been disdosed separately below for information. These funds Cort￿5t of the followng= Frampton Fund Agne5 Ethèl MacKay Fund lack Goldhill Sculpture Fund Charles Wollaston Award Fund Pitchforth Scholarship Fund Sir John Reeves Ellerman Fund 2022 2021 Income from investments 274 88,407 Expenditure {166,326) {130,1091 Net Ilossesl I gains cffl investments 1484,154) 831,397 rlet {lossl I Sncome 1650.206) 789,695 Total funds brought fonmard 4.971243 4.182.548 Total funds carried forwa 4.322.037 4,972,243 Represented bv: Investments Cash at bank Debtors Creditors 4.014,322 153,412 180.187 {25,8841 4.554.914 132.874 307,649 123.1941 Total funds 4.322.037 4,972,243 28 Reconclllatlon of net Sncome to net <•sh Inflow from operatln8 artiviiles 2022 2021 Net income Amortisation of in￿n￿ble assets Depreciation of tangible assets Diminution in value of investment property Current pension 5eryice income Ilncreasel I decrease in stock Ilncreasel I decrease in debtors Decrease in creditors Interest paid Interest received Net losses I Igainsl on fixed asset investments 10,071.576 211no 3,422,745 8.173 1140.000} 144.814} IlJ37WI 1379.562) 438.370 15.6181 12&032 6.057,422 417,980 3.482,493 720.521 iioi,(mi 161,899 l.1)01,181 11,436,556) 483,703 1138,7841 Net ¢ash provided by operating activities Il379.784 10,648,851 Page. 62

The Royal Academy of Arts Notes to the Flnanclal Statements For the year ended 31 Augurt 2022 29 Penslon costs The Royal Academy, tO8ether wtth its subsidiary undertakings, participates in a funded definèd benefit pension scheme, operatetl by the Royal Academy of Arts Pension Scheme 1.the Scheme"). providing benefit based on Ilnal pensionable salary. The assets of the Scheme are held independentty from those of the Royal Acadèmy. The Schème provides pensions in reti￿ment and death benefits to members. Pension benefits are linked to the members, final salary at retirement and their len8th of seNce up to the date on which the Scheme closed to future atcrual, being 30 September 2016. The Scheme 15 a re￿￿ere￿ scheme Lmder UK legisla￿On and was not contracted out of the State Sector Pension Fxiorto the cessation of contracting Out from 6 April 2016. The Scheme is sublert to the stheme funding requirements outlined in UK legislation. The Scheme was established from 3 January 1985 under trust and is govemed by the Scheme's defintttve tnjst deed and rules dated 31 March 1998. The trustees are responsible for the operation and the 8ovemance of the Scheme. indud1￿ making deasions regarding the Scheme's fvnthng and investment strategy. A fvll artuarial valuation of the Scheme was carrieil out as at 31 August 2019 and has been updated to 31 August 2022 by a qualified independent actuary. The next full actuarial Valuation of the Scheme will be a5 at 31 August 2022. The value of the liabllities at the reportSng date have been estimated by updating the results of the actuarial valuation as at 31 August 2019 to allow for the passage of time, aclual inflation experiÈntÈ, bènefits paid out of the Scheme arKI than8es in ¥tuarial assumpti￿5 over the period fr￿ 31 August 2019 to 31 August 2022. Slnce June 2(￿ the Scheme has been dosed to new members and dosed to future accrual on 30 Septernber 2016. The MJJW 45SWnPtlons used bythe attuxy were Vn nomlnal tern￿) as follows: 2022 2021 Discojnt rate Inflation assumption IRPII Inflation assumption ICPII Rate of InC￿aSe in salaries Pension increases for service accrued: Pre 6 Aprll 1997 6 April 1997 to 30 September 2CQ6 Post 30 September 2 1.6% 3.3% 2.4% 3.3% 3.5% 3.5% 2.5% 3.3% 2fA 2.4% 3.2% 2.1% Assumed life expectancies on reiirement at age fl) are: Retiring in 2022- Males Retiring in 2022- Females Retirrn8 in 2042- Males Retiring in 2042- Females 26.3 26.7 29.3 28.2 30.8 The assumptions used in detemiining the ￿￿ra1[ experted return of the Scheme'5 assets have been set with reference to yield5 available M 8overnment bmds and approprtate risk margins. Pa8e.' 63

The Royal Academy of Arts Notes to the Flnancial Statements For the year ended 31 August 2022 29 Penyon costs la)ntlnued) The assets In the 5d￿me re: 2022 2021 Equltie5 or equivalent Corporate bonds Cash LOI fund5 10.779M 18.970.000 479,( 7.801.000 14,373,( 25,183.OC 844,0 13,356,OCKJ Fair value of Scheme assets Present value of funded obligations 38.029.000 53,756,0 131.585.000) 145,W.tXX)I Surplus in funded Scheme 6A44,1KIO 8,734.LK Net asset in balance sheet 6A44.(KWJ 8,734,LXX) Recondllatlon of openln8 ar￿ clos5n8 balan(￿ olthe we5erf of thè de15ned I￿errt obli8ation: 2022 2021 Benefit obligation at beginning of year Interest cost Actuarial18ainsl I losses Benefits paid 45.022.IXKI 712,000 113.146.0(h)I 11.IX13.0(W)) 45.068.0 665.OC(I 827,0(KJ 11.538.OCQI Benefit obligatFon at end of year 31.585,1 45.022.OCKI RrforKiliatlon of openh)gand dosin8 balanos of the fak rdlue of Scheme assets: 2021 Fair value of kheme assets at beginning of year Interèst income on Scheme assets Return on assets. excluding inte￿t income Benefits paid 53.756.1X) 852,0(X (15576,0001 I1.￿3.ocI}l 51,780,OQ) 766.0(XJ 2.748,0 11,538,000) Fair value of Stheme assets at end of year 34029.r 53,756,000 The amounts recO￿ls¢d in th¢ 50FA: 2022 2021 Net interest on the defined benefit pension xheme asset 1140,(KK)I iioi.cmi Total income (140WI iioi.(wi Rerneasuiement ofthe defined benefit penslon stheme asset: 2022 2021 Actuarial Igainsl / losses on the liabilities Return on assets, excluding interest inc¢Nne (13.146,0001 15,576.lJ)O 827.C4XI 12,748,IxxsI Total remeasurernent of the defined benefit penyon scheme asset 30.(#JD 11,921.OCK)I Page.. 64

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2022 30 Authorfsed and contrarted capitsl expendltuwe a. Group Costs Total proJert expensed to the SOFA Assets In Authorised A55ets In course of but not ser¥ice constructlon contracted for Other projects Burlington Project- Phase11 8urlin8ton Projert- Phase111 Othef Burlington Projects.. Fa[ade 340,799 4,138,940 486,203 17,8C(I,C(KI 5.C(MJ.fO) 169,044 1.446,547 12.045,469 4,513,797 750,Cfrf) 705,396 Total 23.8￿?.799 169J>44 1.44&547 5.010.546 17.264.662 b. Royal Academy Assets In Authorlsed but not sef¥ke ¢onstructlon contracted lor the 50FA Other projects Burlington Projert- Phase11 Burlington Projert- Phase111 Other eurlington Projects: Fa￿de 328,672 17,8(Kl,Q)J 328,672 4,138,940 486.203 169.l>VI 1.446,547 12,045.469 4,513,797 750.1 705,396 Tot 23.878.672 169.044 1.446y7 4.W419 17.264.662 Burlington Projert- Phase 11 is the redevelopment of the Royal Academy Schoob. The work has been split into two phases. A smaller first phase created new workshop spaces in 6 8urlin8ton Garden5. These were completed to budget in early 2022. A MO￿ sonificant second phase will refurbish the Royal Academy Schools main footprint in 8urlinBton House Starti￿ in late 2022 and due to cornp￿te in earty 2024. Knight Hafwood were the main contractors for the 6 Budington Gardens wor*s and 3 contract appointlng them for the second phase was signed in December 2022. GenLYal inllation has pushed up costs and there are procurement issues with certain materials suth that an irKreased totsl budget of £22.tkn wa5 approved by Councrl in November 2022, £4.2m higher than the premous £17.8m budget approved in April 2021. 8urfington Project- Phase111 is the redevelopment of the Collectlon Gallery. This is ¢Urrertt￿ at an early deslgn stage with the intention that the construction phase commences no later than July 2025. Total costs are estimated at £S.Om and this has been fully fundraised, with the funds held by the Royal Academy Trust untll required by the Royal kademy. £0.5m was donated by the Royal Academy Trust in 2018, with a further £O.Sm in 2019 in respect ol costs incurred to date with the balance being held in cash at bank. The remainin8 £4.1)n is belng held and invested by the Roydl Academy Trust until req￿red by the Royal Academy. The farade project is in respect of the restoratim and the deart1￿ of thè BUdin￿On House fapde. This project 15 at a preliminary design stage a £0.7m budget was approved by Council in April 2021. This has been fully fundraised for and is included in cash at bank less Project costs incurred to date. Page.. 65

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2022 31 (￿li118ent Ilabllltlts The Royal Academy and its subsidiaries had no ¢ontingwt liabllitles as at 31 Au8USt 202212021.. none). 32 Fina￿131 commttments . Group At 31 August total commttments under operating leases were as follows: land and buMdlnAs 2022 Total Land and buildings 2021 Total Other Under one year Two to five years Over flve years 123,636 790,￿9 I￿6.595 455.(K12 496.082 678.638 L286,271 856,S95 38,012 114.036 432.618 835,952 470,630 949,988 Total 2A70,420 951.084 3A21.$04 152,048 1.268.570 1,420,618 b. Royal Academy At 31 August total commitments under operating leases were as follows: land and bulklln 2022 Totsl Land and buildings 2021 Total Other Under one year Two to five years Over five years 223,636 413.896 637.532 790.189 494467 L284.656 1.8S6.595 1,856.595 38,012 114,036 398.568 814.687 436.580 928,723 Total 2.870A20 908,363 3.778.783 152.048 1,213,254 1,365.302 33 Anandal I￿trUments The financial statements indude the following finandal Instruments at 31 August: Group 2022 Royal Academy 2022 2021 2021 Financial assets measured at amortised cost U92,581 1.261.541 3.075.033 2.723,344 Financial liabilities measured at amortbsed Cost 13060279 17,241,729 I3￿13,522 17.246,195 Financial assets measured at fair value 1.742.057 1,870,089 1,742,057 1,870.089 Pa8e: 66

The Royal Academy of Arts Notes to the Finanaal Statements For the year ended 31 Au8USt 2022 34 Related partytr•nsactiw Those in positions of authority within the Group. including trustees. Council members and directors. use facilities of the Group on the same temis as other Royal Academicians, Friends, Patrons or external customers. This includes acce55 to exhibitions. purchases from shops, Summer EXhIbit￿n. and auctions, and also the use of catering facllliles. For the year ended 31 August 2022. all tranS￿tionS with related parties are considered within the scope of normal transactions. Income of £nll {2021: £nill was received from IiA Enterprises Limited. as ILNI% of their net income for the year was offset by prior year losses. In addition, RA Enterpri5e5 Limited wa5 recharged salarie5 of £1,576,604 12021.. £1,928,0411 and other expenses of £482.01412021= £85.6101. induding a share of central support costs and a licence fee for the use of the KA name. data and rights. At the year end. £1.324,61612021'. £1,808,884) was owed and ind￿￿ed within the Royal kademy's debtws. Income of £446.64612021: £nill was receNed from Burfington House Limited. being a distribution of 100% of th￿r net income for the year, offset by prior year105ses. IA addition. budington House Limited was ￿Charged expenses of £142,23812021.. £nill. At the ytar Lmd. £38.623 {2021= £227.697 creditor) was owed and induded within the Royal Academy's debtors. Incorne of £1,465,63612021.. £568.407) VAS rÈcÈived from RA (Arts) Limlted. being a distribution of IC#)% of their net income for the year. In addition. RA (Arts) knmited was recharged salaries of £103,64912021'. £65,878) and other expenses of £88.￿3￿2021: £128,263 rechar8èd to PAI. induding a share of central support costs and a lieente fee for the use of the RA name. data and rights. At the year end. £4,CM)912021.' £81,287) was outstanding and included within the Royal Academws creditors. Income of £11,157.28712021'. £11.144,5091 was received from The Friends of the Royal Atademy, of whi¢h £57,96712021= £696.0141 rèlatès to unrestricted legacy income received by The Friends of the Royal Academv and donated to the Coronaviws Emergency Support Fund, with the balance of £11,099,320 12021.. £10,448,495) bein8 11Th of their net in¢ome for the year. In addilion, Thè Friends of the Royal Academv reimbursed salary and other expenses recharged of £554,75012021: £802,240). At the year end, £246,433 12021: £81,635) was outstandin8 and induded within creditors. In Order to optimise ¢a5h management effiuenry, the sterfing turTrnt at¢ounts of the Royal Atademy, its subsidiary undertakings and The Friends of the Royal Academy are pooled, such that overnight all deared debit and uedit balan￿$ on the current accounts of these entities are set off into a single Royal Academy account. The debtor and creditor balances be￿een each of thè entltles In thls pcding group at the year end In part reflects this pooling arrangement. During the year. the Royal Academy received income of £1.055.889 12021: £2,969,498) from the Royal Academy Trust with donations of £nil towards Burlington Projert - Phase 112021.. £2,LKKI,LKK)l and £1,055,889 12021.. £969.4981 further donations to support various campaigns and projects undertaken. tyonations of £1,648 to the Royal Academy Trust12021'. £15,3281 relates to unspent funds from the catalo8uin8 project. At the year end. £39.19512021.. £435.9411 was owed and induded wtthin the Royal Academy's debtors. The trustÈes donated a tatal of £nil12021: £nill to the flo￿1 kademy during the year. Pa8e.' 67