2024-07-31-accounts

Royal Welsh College of Music and Drama Limited Financial Statements and Annual Review Year ended 31 July 2024 Registered Company number Registered Charity number 06013744 1139282

Corrtents Page Reference and administrative detai15 2. Chairfs Report 3. Corporate structure, Trustees and Directors 4. Trustees, Report lincorporating Strategic and Directors Report) 10-18 5. Dirertors. Responsibilities 19 6. Objectives and activities for the public benefit 20-24 Independent Auditorfs report 25-28 Statement of Comprehensive Income and Expenditure 29 Statement of Changes in Reserves 30 Balance Sheet 31 Cash Flow Statement 32 Note5 to the financial statements 33-49 Royal Welsh Callege of mu￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsandA￿nllaI YearendEd al Juty2024

l. Reference and administrative details Charity name Charity number Company number Royal Welsh College of Music and Drama 1139282 06013744 Chairman Mr M Plaut Secretary Mr W Callaway Prlnclpal address and reglstered office Castle Grounds Cathays Park Cardiff CFIO 3ER Independent auditors Emternal.. Haysmac LLP 10 Queen Street Place London EC4R IAG Internal: TIAA Ltd Artillery House Fort Fareham Newgate Lane Fareham P014 IAH Royal Welsh Callege of mu￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsandA￿nllaI YearendEd al Juty2024

1. Chairf5 report for the year ending 31 July 2024 The College's community have delivered an impressive t￿)dY of work this year, despite the challenging climate for Higher Education. and has continued to deliver on our vision to change lives. transform and ¢onne¢t Communities through the arts. This report tells the story of the College in 2023124 through the following rnain 5ection5.' 2.1 Highlights of the Year 2.2 Student Experience 2.3 Key Facts about the College 2.4 Looking forward 2.1 HlghliBhts of the Year This year we began celebrating the College's 75, birthday. Our ambition was to Create and deliver a schedule of work that showcased the Colle8e's unique focu5 on craft and creative training that has empowered our graduates to make a real difference on a global stage as collaborative. innovative artists, and active, responsible contributors to v)ciety. Despite the challenges faced this year. outlined n the introduetion to this report, I'm ple3sed to be able to report that we've been able to deliver on this ambition. Below we've set out just a few of this yearfs highlights. Natlonal Open Youth Orchestra I"NOY(ri- in September 2023 we joined forces with NOYO and BBC National Orchestra of Wales to open the Cardiff NOYO Centre. which now offers the first progression route for talented young disabled musicians in Wales. Five studenls joined us this year and their Cardiff rehearsals fed into the UK network of NOYO Ensembles18arbi¢an, Bournemouth, Birmingham, and Bristol) with opportunities for Cardiff members to participate in collective NOYO projects between terms. Two performances in the College summer 2024 showcased the work of our NOYO ensemble. Llnbury Prlze for Stage DeslBn- the College's extraordinary track of success continued this year with five of the recipients coming from the College. Over half of the finalists over the last five years have studied at RWCMD. A Chr15tma5 Carol - we welcomed the festive season in December 2023 with a unique presentation of 'A Christmas Carol,. With integrated British Sign Linguage IBSLI this sold-out production brought a very happy Christmas to 311. As well as bringing in 3 new audience, making this inclusive work expanded ideas and horizons, as well as the Skill set of the actors that train with us. Old Library engagement- in February we held a Public Open Day to celebrate and share our plans for the Old Library. More than 200 people joined us to see the potential of the spaces inside and to voice their thoughts and aspirations forthe building. Visitors were able to watch.. schools. workshops taking place, scenic constructiorb sessions to explore our design for performance courses and movement workshops. Vi51tor5 also enjoyed an open dress rehearsal of the Welsh/ Chinese Dragon project, an Arts Council Wales funded partnership between the Chinese in Wales Association and RWCMD, which has featured at multiple Lunar New Year events. Our Dirertor of Music, Tim Rhys Evans, led a celebratory open choir. Thi5 saw local worker5, member5 of the Windrush Elder5, families, people experiencing homelessness and many more come together for a heartwarming moment of collective singing that we look forward to repeating many times in the future. Royal Welth Callegt of mu￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024

Sweet Charity- in May our students were joined by Dame Shirley Bassey at the sold-out premiere of Sweet Charity at the Sherman Theatre. This was a very proud moment for the College the first "showcase- production from our undergradu3te Musical Theatre course launched in September 2021. 75 Blrthday Gala-this event in May, at Shakespeare's Globe in London, honoured Sirjonathan Pryce C8E's RWCMD Fellowship and provided the platform for raising over £200,000. Thi5 new funding means that we have Iieen able to offer an enhanced Bursary Scheme for our students from 2024125. Also. in May. we learned that HM King Charles 111 would continue as the College's Patron. extending his long close and supportive relationship with us as the former Prince of Wales. In keeping with all his charity relationships when he ascended the throne, His Majesty Stepped away from the Presidency of the College and we will be appointing a new President in due course. Urdd partnership- in June we announced an important new partnership with Urdd Gobaith Cymru, creating new opportunities for some of Wales's most promising artistic talents. Six young performers, including some of our current students were chosen to be Young Cultural International Ambassadors at the annual Welsh language festival, the Eisteddfod yr Urdd. 2.2 Student Experfence Across the academic portfolio 91% of our students took part in the 2024 National Student Survev "NSS~I, compared with 94% in 2023. This compares very favourably across HE in Wales where the participation level averages at 72%174% in 20231. In terms of the headline measure of our students, views about the College we're pleased to report that we've consolidated the gains made lasi year, indeed improving from 80% to 81% on "overall satisfaction. The table below provides some additional course by course analysis.. Course ol study 2024 2023 2022 2021 Overall satlsfartlon (all courses) 81 80 71 70 BA Acting 100 100 90 86 BA Stage Monagement 100 91 73 53 BA Design 96 85 Ico loo 8MUS 68 69 61 64 BA Musical Theatre l(N) nla nla nla Our BA Musical Theatre students were surveyed for the first time this year, and we're delighted to report 100% overall satisfaction from our first set of graduates on this course which was introduced to our portfolio in 2022. Our BA Acting course also achieved 100% along with BA Stage Management, which has now increased overall satisfaction from 53% in 2021 to 100% in 2024. The BMUS course, which continues to be our largest Undergraduate programme, consolidated the improvement from 2022. As we continue to build strateEiC aims and systemic and organisational change at the College, we celebrate the overall direction of travel of an upwards trajectory over the last four years. At the same time, we continLJe to recognise that some of our ambition will take longer than one or two academic sessions to embed fully. and this work is on-going. Royal Welth Callegt of mu￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024

2.3 Key Facts about the College Student Body In 2023124 the College had 853 students12022123.. 8691. Additional information is set out below.. 2023124 72% undergraduate and 28% postgraduate 81% from UK with 22% from Wales Il% We15h Speakers 18% from 38 different overseas countries 2022123 70% undergraduate and 30% postgraduate 83%from UK with 22% from Wales Il% Welsh speakers 15% from 38 different overseas countries 27% declaring a disability 20% declaring they are from the global majority 94% retention rate 26% declaring a disability 18% from global majority 97% retention rate 90% of graduates received a first-class or upper second<lass degree 91% of graduates received a first-class or upper second-class degree Resources Our students continue to benefit from the performance programme at our busy arts centre and as part of other live industry environments. can engage audiences in their work at every opportunity. Importantly this means they learn up close Irom some of the world's most renowned performers, push boundaries, collaborate with colleagues and partners and create new work across a full range of professional and community settin85. Across our three exteptional sites in Cardiff our students have access to world elass facilities. Our main 51te includes the Dora Stoutzker Hall, Richard Burton Theatre and Linbury Gallery as well as smaller rehearsal studios includin8 those named for Dame Shirley 8assey and the late Lord Rowe. Beddoe. Our Llanishen workshop is a fully equipped facility for teè¢hin8 scenic arts and construction techniques. It is the envy of many of our ¢ompetitor conservatoires and enèbles our students to work on the same equipment as specialists in the industry. We continued to develop the work at our citv centre Old Library site durin8 2023124 rolling out MO￿ of our teaching and usin8 the unique spaces to create more informal approaches to performance and inclusive fom)s of public pèrticipation. Making best use of these resources across the College community. we ensure knowledge. experience and opportunities to perform are providedtoour students in order to provide a high-qualityworkfor¢e to the creative industries in Wales, the UK and internationally. The deployment of the College's resources enhances the employability and professionalism of our students so that our alumni successfully carry our name and reputation across the industry. 2.4 Looklng forward Like almost all UK HE providers in the UK. RWCMD is facing significant financial challenges. Three years of high inflation have impatted the core costs of running universities and Colleges in the UK. Undergraduate student fees in Wales have been capped for nearly 10 years and public funding for HE Royal Welth Callegt of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024

in Wales has reduced by 6% for 2024125. A Universities UK ￿POrt. published in September 2024. commented that funding of universities across the UK is structurally unsustainable and confirmed that universities are already making very significant cuts to balance their budgets. Many universities have announced redundancies and over 40% were expected to be in deficit in 2023124. Like our peers, therefore. we must drive our own financial sustainability to carefully steer the College through the next few years. The RWCMD Board and Senior Management Team have been focussed on this challenge throughout this year. The task we have set ourselves is to develop robust sustainable future plans that ensure that RWCMD can continue as the National Conservatoire of Wales- to remain fully committed to the development of world-class artists and makers in Wales, to play our part to build pathways into professional training and to reach young people from diverse backgrounds throughout Wales, and to make a significant contribution to wider cultural life in Wales and beyond. To remain a conseNatoire ol choice, which delivers for our students, colleagues, and communities, we must continue to be distinctive and competitive. It will not be enough to simply reduce costs, we will also have to adapt our ways of learning. teaching and working in innovative. future-focused ways. and continue to invest in our physical and digital infrastructure. Important early progress has already been made. We are developing a model and a narrative for a-conservatoire of the future- which also creates a framework for reducin8 COSt5. We are therefore movin8 forward cautiously looking to protect our reserves in the short to medium term and some early cost reduction plans, from all areas of the College's attivities, are already ncluded in our budgets for 2024125. An important component of those cost reduttions was the decision taken, in july 2024. to close our regularweekend music and drama provision for young people under 18. We heard powerful individual stories from some of our Young RWCMD participants and public concerns were expressed, which demonstrated how much people in Wales care about the role of music and drama in the lives of ouryoung people. However. our decision was driven by the financial imperative we face. It's important to note the Welsh policy context and the reality of limited resource across the arts and education, RWCMD is not funded or tasked to provide a weekly service to school. a8e children, and there is a stark contrast with conservatoires in England that receive annual funding from the Music and Dance scheme for their specialist under-18 provision. We are determined, nevertheless, to create a positive future with opportunities for young people that they value. RWCMD 15 now scoping a new partnership approach to support outstandin8 talent from right across Wales. developing sustainable models in music and drama that will best serve young people from all backgrounds. And we are hopeful that the position with public finances will start to mprove in the next few years and new investment will become possible. Looking ahead, while the￿ is much more to do. we approach the future with confidence and optimism. Our dedicated project team, led by the Principal, will develop and deliver our plans to reshape RWCMD as a world-leading, future-focused and sustainable conservatoire Isocially, economically. environmentsllyl to ensure that we deliver the cost savings we have identified as being essential. Royal Welth Callegt of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024

Conclvslon At a time when many in the arts and in higher education- including us - are facing a very significant economic threat. our focus is firmly facing forward as we develop plans to strengthen our offer and our influence as a precious trainin8 institution and the National Conservatoire of Wales, where the future of music, theatre and the creative industries is being shaped towards defining and implementing a future sustainable model. We are grateful to the many indlviduals, businesses and charitable trusts that have generously supported the College during the year. Everything we achieve is as a result of the workof the dedicated staff of the College. to whom I would like to pay a particular tribute. I would also like to thank all my fellow Trustees for their artive and committed service and to acknowledge, with great 50rrow, the loss of our former Chair. President and Chair Laureate, Lord (David) Rowe-Beddoe who passed awav in November 2023. David served the ColleBe with wisdom, energy and love over many decades and will always be remembered and missed. Mlchael Plaut OBE Chalr of Board of G¢)vemors 25 November 2024 RoyaiwÈbh Cal￿01 Mus and l ￿nInE￿I 5raI￿￿e￿tsaDd1ffinUaI Rthlewl Year*ndÈd3IJ￿￿2ts14

1. Corporate 5trurture, tr115tees and dirertor5 The Royal Welsh College of Music and Drama Limited is a limited company and a registered charity. It is governed by its Articles of Association. It is a subsidiary company of the University of South Wales "USW") which is its sole member. The Company's registered addre55 is Castle Grounds, Cathay5 Park, Cardiff, CFIO 3ER. The Charity's contact address is University of South Wales, Treforest, Pontypridd, CF37 IDL and the registered number 15 1139282. The members of the Board, listed below, a￿ the trustees of the Charity and as such have due regard to the Charity Commission's Éuidance on public benefit and its supplementary guidance on the advancement of education for the public benefit. The existing directors and those who held office (Juring the ye3r and up to the date of signing the annual report and financial statements, are given below.. Sarah Alexander OBE- appointed l August 2023 April Audiger Antigone Alys Blackwell IRWCMD Student Presidentl- appointed 6 September 2024 Dr Ben Calvert IUSW Vice Chancellor. University of South Wales- ex officiol Mario Ferelli Professor Helena Gaunt IRWCMD Principal . ex officiol lan Lewis Tianyi Lu Aled Miles Roger Munnings CBE Michael Plaut OBE IChairl- appointed l August 2023 Professor David Ruebain Helen Sanderson (nominee of RWCMD Staffl- appointed l August 2023 Nitin Sawhney CBE- resigned 29 October 2024 Manon Bonner Antoniazzi- resigned 10 lune 2024 Natalie Roe IRWCMD Student Presidentl- ￿Signed 31 July 2024 Royal Welth CallegE of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024

2. Trustees Report This report includes the Strategic Report and the Directors, Report required under the Companies Act

3. The Trustees confirm that the financial statements for the year ended 31 July 2024 have been prepared to comply with the Companies Art 2(X)6 and the Statement of Recomrnended Practice ISORPI.. Accounting for Further and Higher Education 2019 and in accordance with applicable accounting standards. 4.1. Strate81¢ report Flnantlal Revlew Prlnclpal artlvltSes The College's principal activity continues to be the delivery of conseNatoire education and professional training. In addition, the College activities include the provision of publi¢ performances and exhibitions and the maintenance and improvement of performance facilities for the benefit of the local communitv. Summary of ma5n achlevements A summary of the main achievements of the College in 2023124 is set out in section 6. FlnancSal strategy The Chails report. in section 2. describes some of the financial challenges facing the UK Higher Education sector and explains how these might impact the College's finances. Three years of high inflation. fixed UK undergraduate fees since 2014 and a 6% reduction in the Expensive Subject Premium funding from Medr in 2024125 means that the College. like most of the Higher Education sector in the UK, is now expectin8 to be managing the challenge of overall deficits over the foreseeable future unless swift action is taken to restore funding levels. The Trustees have been working with the Senior Management Team to review and Update the College's long-term financial strategy durin8 2023124. The overriding priority is to develop and adopt robust sustainable plans that ensure that RWCMD can remain a conservatoire which will deliver hiBh quality life and career preparation for our students and value for colleagues and communities. The immediate focus has been to look at ways to reduce the projetted deficits to protect reserves in the short to medium term and. to this end. some early cost reduction plans have already been mplemented and are included in the budgets lor 2024125. Further reductions are likely to be needed in later years and work continues in those areas in 2024125. There is continuing emphè515 on careful cash management to support the strategic priorities while retaining and enhancing the College's infrastructure. It will not be enough to simply reduce costs, the College will also adapt ways of learning and working and continue to invest in physical and digital infrastructure. The Trustees are Clear that, as these plans are developed with the Senior Management Team, the emerging future RWCMD o ¢onservotoire Aor the future must ¢ontinue to be distinctive and competitive. It will not be enough to simply reduce costs, the College intends to also adapt ways of learning and working and continue to invest in physical and digit31 infrastructure. Royal Welth CallegE of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 io

Key Performance Indicators The College uses the following key financial performance indicators {"KPI's"I to monitor overall performance against its financial strategy. Performance over the last two years shows.. KPI'S Surplus before gains and10sses- £(X)O Cash lincluding short term bondsl- £(MXI Net Assets- £QMJ) Current ratio 2023124 2,109 6.357 19.746 2022123 608 4.955 17.419 The College continued to operate in line with budget in 2023124 and is reporting another year with an overall surplus in the Comprehensive Income and Expenditure account, a resilient net asset position and a reasonable cash reserve. Adjusted KPI'S The surplus before Eains and losses reported in the Comprehensive Income and Expenditure account includes revenues which are Resetwed for future capital works to develop the Old Library12023124: £3.Om and 2022123.. £0.5ml Invested for the long temi in the College Endowment fund 12023124-. £Nil and 2022123.. £1.675ml. Without these two items the adjusted position would have been a deficit in both years. Adlusted KPI'S (Deficit) before gains and105ses- £cKyJ 2023124 18911 2022123 11,5671 Importantly RWCMD has 3 relatively stron8 balance sheet with adequate cash reserves allowlng absorption of the adjusted deficits in the last two years. Flnanclal prospert$ As noted above the Trustees and Senior Management Team are developing a sustainable future financial plan that seeks to protect reserves by reversing currently projected future deficits. FlnancSal Performance 2023124- Headllnes frorn the Flnanc5al Statements 2023124 £(M)O Z2.176 20,067 2.109 3.589 19.746 2022123 Change Total income Total expenditure Surplus before gains and losses Cash from operating activities Net assets 20,886 20,277 608 505 17,419 +1,290 -210 +1.501 +3,084 +2,327 In¢ome 2023/24 saw continued increase in tuition fee income of £1,290k reflecting both additional headcount and inflationary incre8ses in non-reÈulated fees, with a notable 26% increase in overseas income for the year. Funding from donations and endowments (which includes £3m donations towards future capital expenditure to develop the Old Library, which provides much needed additional space for students in Cardiff city centrel increased by IO% and other income increased by 19%, with investment income more than doubling this year. Royal Welth CallegE of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 li

Expenditure Expenditure has fallen slightly by £210k (prior year was an increase of 12%). In year inflationary increases lincludinE salaries) were absorbed together with delivering on in-year cost savings measures. Cash generated from ¢peratln8 artlvltles Net cash from operating activities was £3,589k* in 2023124 compared to £505k last year. Other significant tash movements in the year included payments to acquire fixed assets of £1,239k' 12022123.. £1,285kl and the xheduled loan repayments to Barclays Bank plc linclvding interest) of £538k. This inclLJdes £3.OOOk of donations received towards future capital expenditure at the Old Library This includes capital expenditure of £816k on the Old Library Net assets The increase in net assets of £2,327k reflects the increase in total comprehensive income in the year. 4.2. Engazlng wlth our stakeholders lsecllon 17211) $tstement) The Trustees (who are also Directors of The Royal Welsh College of Music and Drama Limited for the purposes of company lawl have a duty to promote the success of the College having regards to the interests of our stakeholders. our students. our audiences. our employees. Higher Education Funding Council for Wales (now Medrl, our relationships with our suppliers and the impact of our operations on the communities in which we operate. and to ensure that we maintain a reputation for high standards of quality. care and business conduct. All key Board decisions consider the impact on relevant stakeholders with a particular focus on providing high-quality setvice perfomiance. community engagement. innovation. best practice in governance, workplace practices and responsible corporate citizenship. The Board endeavours to gain an understanding of the perceptions and attitudes of each stakeholder group and the weight they give to different issues and where these views may not align. the Board will take the best course of action to promote the compan￿5 long-term success. Our students Our students are at the heart of our purpose and operations. We aim to attratt, select and retain a diverse range of Students to Study at the College and create an environment that enwurages and support5 all students to actively engage and to realise their full potential. Employees. employee Involvement and Disabled Ernployees The College's Strategic Equality Plan 2020-2025 includes a core objertive to attract, retain and develop a diverse range of people to work for the College and to enable them to have access to open and transparent career development and progression. Applications for employment by disabled persons are always fully considered. t3kinÈ into account the respertive aptitudes and abilities of the applicant concerned. In the event of members of staff becoming disabled. every effort is made to ensure that their employment with the College continues, and the appropriate training is arranged. It is the policv of the College that the training, career development and promotion of 3 disabled person should, as far as possible, be identical to that of a person who does not suffer from a disability. Royal Welth CallegE of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 12

Consultation with employees or their representatives is regularly undertaken, with the aim of ensuring that their views are considered when decisions are made that are likely to affect their interests. Communication with all employees is undertaken through regular staff meetings and e-mails and occasional staff survey5. Staff members a150 have a Director a5 a representative on the Board of Directors. Re8ulators The College provided Higher Education services during the year. The College is a wholly owned subsidiary of the Univer51ty of South Wales I'USW'I who are regulated by Medr, previously the Higher Education Funding Council for Wales l-HEFCW-l. Medr is the principal funding body from which the majority of the College grant income is received. USW and hence the College work closely with Medr as part of the USW group funding arrangements. Regular qualitative and financial reports are submitted, and the College's success is dependent on this open and reciprocal relationship. The College as a company and charity. also reports via Companies House and the Charity Commission. Suppllers Our strong relationship with suppliers ensures continuity of our operations and our ability to service our stakeholders to the highest possible standards. Suppliers include suppliers of product and services across our education. public performance and venue and other commercial setwices. We pay our suppliers fairly within agreed timescales and always aim to conduct ourselves professionally and to high standards. We work closely with our suppliers to ensure that they have effective controls in place to protect our students, land other stakeholders if applicable) health and safety and the security and privacy of their data. Communltles and envlronment We continue to invest in this area which is led by our Communities Engagement Partner. We've outlined Some of the highlights of the past year in section 6 of this report. We recognise the global climate emergency and have joined the many organisations around the world calling for urgent action to tackle climate change. Specifically. we have pledged to get to carbon net zero by 2040 and work with Race to Zero to support our commitment to a healthy and resilient zero carbon recovery. Royal Welth CallegE of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 13

4.3. Energy and Carbon Reporting UK Greenhouse gas emissions and energy use data for the year to 31 July 2024: 2023124 2.860,358 2022123 2,520,255 Energy consumption used to calculate emissions Ikwhl Scope l.. emlsslans In metrlc tonnes C02e Gas consumption Own transport 300 32 253 12 Scope 2.. emissions in metric tonnes C02e Purchased electricity 252 219 Scope 3.. em155lons In metrlc tonnes C02e Own transport Business travel in employee-owned vehicles 51 14 Total 8ross emlsslons- Metrlc tonnes C02e 640 503 Intensity ratio- tonnes C02e per student 0.75 0.58 Quallf5catlon and reportlng methodology We have followed the 2019 HM Government Environmental Reporting guidelines. We have also used the GHG Reporting Protocol - Corporate Standard and have used the 2020 UK Government's conversion fèttors for Company Reporting. Inten51ty rneasurernent The chosen intensity measurement is a calculation of a ratio of total gross emissions in metric tonnes Co2e per student, the recommended KPI for the sector. Measures taken to Improve energy efflilencv All the Colle8e's electricity is SOUr￿d from Breen renewable Sources and more than 85% of the conventional lightin8 installations have now use LED. Since 2021 the College has been replacing our fleet of diesel fuel vehicles with hybrid versions, along with reducing the size of our fleet overall. The 198Kw solar panel array installed on our North Road campus roof, in 2022, generated 193,785kWh in 2023124. This array is capable of 8enerating up to 40% of the average daily base load of eleetricitv across the campus. Workin8 Wlth the Welsh Government Energy servi￿ we continue to identify and undertake remedial works, where possible and affordable, to improve insulation and reduce heat loss through the fabric of the buildin8. The College is aimin8 to improve capturing and reportin8 of carbon production from Royal Welth CallegE of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 14

4.4. Principal risks and uncertainties The College has identified a number of high-level strategic risks that it monitors on a regular basis. These include: Flnanclal health of the sertor As referenced in the Chairfs Report, the HE sector is facing significant financial challenges with recent year5 of high leve15 of inflation impacting on core running Costs, carrying the historic cap on undergraduate student fees in Wales together with the recent announcements of public funding cuts for HE in Wales from 2024125 onwards. These factors are compounded at a time of diminished governrnent finances arhd the prospect of any government intervention or support is considered unlikely in the short to medium temi. To manage these ¢hallenges and mitigate the impact of these risks, the Board and Senior Management Team have taken pro-active steps to protect reserves in the short to medium term with cost savings already delivered during 2023124. A dedicated project team is now in place and developing longer term plans to drive financial SLtstainability that simultaneously create a framework to cut costs, but also creates a platform to adapt to competitive and future focused ways of working by investing in infrastrurture (physical and digitall and adapting the ways in which we learn, teach and work. Recrultment and retenllon ol students The College's strategic plan targets annual growth in its current level of undergraduate and postgraduate student numbers and overseas students while ensuring the quality of students remains high. The College has flexible detailed actions together with a system of enhanced partnerships and an investment strategy to support these plans. Strong controls are in place which include direct oversight by the Executive and close working and alignments of academic and recruitment teams. The Board provides appropriate support and challenge for this work. Fundralslng Fundraising support from trusts and foundations. public funders. businesses. and individuals continues to be essential to offerin8 our students distinctive training and public performance opportunitie5. This support also ensures that. through scholarships and bursaries. young artists can more easily afford the cost of accessing a world class education to develop their creative talent and are not excluded from the opportunities the College offers them. In a highly competitive and challenging funding environment, the work of the Development Department is becomin8 ever more crucial to the College and, while the generosity of our sUPPOrters has resulted in another positive year, it 15 clear that there remains risk atta¢hed to the future largets that have been set. Income 8eneration As reported last year, our income from commercial activities now fully recovered from the COVID-19 pandemic ¢ontinues to grow steadily- underpinned by our loyal custoffler base and new audiences that contribute to strong box-off ice ticket sales, a packed facility hire and events programme and a very busy catering and bar operation. Our commercial income streams are projected to continue to grow in future years. Royal Welth CallegE of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 15

4.5. Directors Report Directors The Directors who served during the year are set out in Section 3 of these financial statements. 4.6. Dlvldends The Directors do not recommend the payrnent of a dividend in respect of the year ended 31 July 2024 12023 £nill. 4.7. Goln8 concern The activities of the College, together with the factors likely to affect its future development and performance are set out in the Trustees. report Iwhi¢h includes the Strategic Report). The financial position of the College, its cashflow, liquidity and borrowings are presented in the Financial Statements and accompanying notes to the accounts. The Directors have reviewed the College's cash flow forecasts for a period of at least twelve months from the date of approval of these financial statements (the going concern assessment period). After reviewing these forecasts. including compliance with current banking covenants and considering whether there are any material uncertainties, the Board are of the opinion that. taking account plausible downsides which reflect the risks and uncertainties described in this Trustees report and specifically in section 4.4. the College will have sufficient funds. to meet its liabilities as they fall due over the period reviewed. Accordingly. the financial statements have been prepared on a going concern basis. Royal Welth Callegt of mu￿[ and Dtarn3 ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 16

4.8. Statement of Corporate Governance and Internal Control Commitment to Best Praclice in Governance The College strives for governance to be undertaken in an open and accountable manner and aims to comply with best practice within the higher education sector. This summary describe5 how the relevant principle5 of corporate governance are applied to the College. The Board of Directors of the Royal Welsh College of Music & Drama Ltd is responsible to the Board of Governors of the University of South Wales whi¢h is the sole 'memberf of the College. The committees of the Board of Governors of the University act as committees for the Boards of Directors of the College except insofar a5 the College has its own arrangements. The Board of Directors carries the overall responsibility for ensuring there is a sound system of risk management, control and governano. The direttors discharge this resFX)nsibility through the following elements.. Effective review by the College Board and ￿levant committees lincluding internal and external audit functionl Control systems which include policies. objectives and plans. management of key risks and opportunities. monitoring of financial and operational performance. physical safeguarding of assets. segregation of duties. authorisation and approval procedures. and information systems The identification and management of risk embedded in all business operations and systems Adherence to the Committee of University Chairs Code of Governance The College's approach for the effective management of risk is set out below.. A focus on the active management of risk as an integral part of the management proce55 Wlthin every part of the organisation. Clearly identifyin8 risks of various kinds to the a¢hievement of its objectives. These risks may be strategi¢ or operational and may present F)oiential implications for the College's reputation, Its financial position or its day-to-day operations or any combination thereof. Actively encouraging all managers to consider risk implications of each major decision, contrart or project as a normal part of their day-to-day work. Integratin8 risk management into the annual planning process which is how the Executive determine and co-ordinate the College's activities. The Principal and the Senior Management Team endeavour to identify and focus on immediate and transient risks with strategic implications. which may change from week to week. as well as on the more substantial and permanent risks which are identified in the College's risk register. Managers are expected to link risk identification to action. whether in mitigation of the risk or in response to it. The Principal and the Senior Management Team work with the College managers and their teams to encourage and support effective risk management as part of the day-to-day management of the institution. and specifically to help them to identify. evaluate. manage and report risks. The risk register identifies significant risks and contains details of.. the nature of the risk its potential impact the likelihood of the risk crystallising the 'ownerf of the risk the control processes which manage the risk USW through its Audit Committee agree an annual programme of audit work to be carried out across the group by its internal auditors. The approach to internal control is risk based.. this Royal Welth CallegE of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 17

includes business. operational and compliance risks as well as financi31 risk. The College Board receives copies of the minutes of all USW Audit Committee meetings The University of South Wales, Audit Committee regularly reviews the adequacy of the process of risk management at the College as it continues to be developed The Board is of the view that there is an ongoing process for identifying. evaluating and managing the College'5 significant risks, that it ha5 been in place for the year ended 31 July 2024 and in place up to the date of approval of the Financial Statements and Annual Review, that it is regularly reviewed by the Board and that it accords with the internal control Euidance for directors on the UK Corporate Governance Code as amended by the British Universities Finance Directors Group. Board of Dlre¢tors and Its sub ¢ommlttees The Board of Directors met four time5 during the rew)rtin8 year. In term5 of audit arran8ement5, whilst a separate College Audit Committee has not been established, all audit reports and reviews and other information relating to the College are formally received by the University of South Wales, Audit Committee which normally meet four times per year and acts as the College 8oard's Audit Committee. The annual report of the internal auditors is considered by the University's Audit Committee who approved the internal audit plan for the year. The College's Board of Directors receive all papers In respect of the audit plan for the year and its subsequent reports Jnd findings. 4.9. Statement ol dls¢losure of Infomiatlon to audlto In the case of each Director in office at the date the Directors, Report is approved, the following applles,. lal so far as the trustee is aware. there is no relevant audit information of which the charitable company's auditors are unaware- and Ibl he/she has taken all the steps that he/she ought to have taken as a Trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information. 4.10. Dlrertors, Indemnltles The Company Ithrough the USW Group) had and maintained throuBhout the financial year Directors, and Officers, liability insurance in respect of itself and its Directors,. This was also in force at the date of approval of the annual report and financial statements. 4.11. Independent Auditor5 The auditors, Haysmac LLP, were appointed in July 2024 and have indicated their willingness to continue in office, and a re501ution concerning their reappointment will be proposed at a future meeting of the Board. On 19 November 2024 the companvs auditor changed its name from Haysmacintyre LLP to Haysmac LLP. By order of the board W D Callaway Company Secretary 25 November 2024 Royal Wd5h Collegeof Mugc and Drarna ￿mited l Financial 5rate￿￿ts andAnwal Rwewl YearendEd 31 luty2024

1. Statement of Directors. responsibilities in respect of the Trustees. Annual Report and the financial statements The directors are ultimately responsible for preparing the Trustees. Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law they are required to prepare the financial statements in atcordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Pratticel, including FRS 102 The FNntsnciÉ71 ReportNng Standord opplicoble in the UK ond Republic of Irelond. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the income and expenditure for that period. In preparing these financial statements. the directors are required to.. select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent,- state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed anil explained in the financial statements,. assess the charitable companws ability to continue as a going concern. disclosing, as applicable, matters related to going concern: and use the going concern basis of accounting unless they either intend to liquidate the charitable company or to cease operations or have no realistic alternative but to do so. The directors are responsible for ensuring the College keeps adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement. whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charitable company and to prevent and detect fraud and other irregularities. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Royal Welth Callegt of mu￿[ and Dtarn3 ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 Ig

2. Objectives and artivities for the public benefit 6.1. Charitable Objectives The College promotes the advancement of education and learning for the public benefit. specifically the training of performers and others in music. drama, design and theatre, through the provision of advanced courses of instruction, leading to the award of degrees or other appropriate qualifications. It also provides, maintains and improves performance facilities for the benefit of the local community. Through the provision of high-quality trainin& the College seeks to produce graduates who are articulate and innovative in their art forms. and to provide the music and theatre industries with a highly skilled workforce, able to represent Wales on the world stage. The College aims to make significant contribution to the cultural and artistic lrfe of Wales and beyond. 6.2. Fulfllment ol Charltsble ObSertlves Beneflclarles.. The College has a higher education student population of 853 students of whom 81% are UK and 18% from countries outside the EU. Those students are the primary beneficiaries receiving high-qualitv training in a range of performing arts disciplines. Other beneficiaries extend to younger students (from the age of four upwards) as well as employers and businesses in the creative industries sector which employ a high proportion of the College's graduates. The general public attend over 400 ticketed public performances each year in addition to occasional free concerts and other educational and cultural activities in the College. such as exhibitions. masterclasses and talks. Admlsslons pollcv: The College seeks to recnjit irrespective of the background the most able and talented students. as well as those who exhibit exceptional potential. The College's Strate8ic Equality Plan 2020-202S include5 a core objective "to attract. select and retain a diverse range of students to study at the College and create an environment that encourages and supports all students to actively engage and to realise their full potential" Within its undergraduate programmes demand for places is high and is normally conducted by audition interview or portfolio submission. 6.3. Publlc Benefft Statement Bursaries. scholarships and funding sUPPOrt: The College has been grateful to receive philanthropit donations and funding through the year to support students who experience financial hardship with bursaries, scholarship5 and wider support. Our bursary scheme in 2023124 provided financial support to all incoming UK undergraduates with household income below £30,(XJ) a year and provided 36 first year students with financial 3SSlStance of either £800 or £1.200 according to their level of need. Across the whole scheme. in 2023124, 123 students122123'. 94 student51 received bur5arie5, equating to around a quarter of the new Intake of undergraduate students Wlth 78 student$122123.. 33 students) receiving the highest level of support. The bursary scheme has subsequently been enhanced in 2024125. providing additional annual support of up to £1.500 for those UK Undergraduate Students with a household income below £35.lJ)O a year. Royal Welth CallegE of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 20

This boost to the scheme was made possible with assistance from several individuals. businesses and trusts, donating in response to our 75, Birthday Appeal. which was focused on raising fund5 for bursaries. Our scholarship policy provides means-tested support for students with protected characteristics. with particular emphasis on ethnic diversity and disability. students in financial need and Welsh domiciled students. There are also a limited number of scholarships which are offered as a means of attracting the most gifted and talented students and in order to achieve balanced cohorts of students to enable training in recognised core ensembles. Development and fundraising: The College employ5 a professional fundraising team to seek and secure income from individuals, businesses, trusts and foundations and from fundraising events, to contribute to core costs, provide scholarships and bursaries, and support particular programme5, performances and projects. The College is registered with the Fundraising Regulator and notes in this report that no complaint5 have been received during the year in relation to fundraising. Atross all fundraising activity, the College adheres to The Code of Fundraising Practice, including the guidance in relation to vulnerable donors. £4.3m12022123 £3.9ml was realised by fundraising during the period exceeding the year's targets for both the core requirements and for the capital Campaign for the Old Library. This success ensured that the College could continue to invest in its programmes and performances and support students with more scholarships and through the Bursary Fund to build better access and greater diversity in our student community. The Old Llbrary capital campalgn, to fund the restoration and transformation of our campus in Cardiff's city centre, has been a notable success this year. The gifts received included £2m. in August 2023, from Sir Howard and Lady Stringer and was followed by the final part I£0.5ml of the Mosawi Foundation's lead gift to the capital campaign and an initial Contribution of £0.5m from the Foyle Foundation received in May 2024. The Development Department made use of the College's 7Sth Birthday milestone by mounting continuous appeal throughout the year to build up the Bursary Fund. Securing gifts and pledges for student bursaries was also the focus of the London Gala fundraising event which was held at Shakespeare's Globe, fully undeNritten by a generous gift from a loyal donor. The second annual Shakespeare Prize took place at the Old Vic. London during the Spring Term. This prize is part of a wider initiative supported by the Backstage Trust that includes an annual Shakespeare production. National Theatre Live-style film, and free educational pack available to every school child in Wales. The Drama Department also received a notable donation from director and writer, Sean Mathias towards the College's Scholarship ProEramme, specifically for student5 in this area of Study. Scholarships continue to be a focus for the Development Department as this is a key area of support for our Students. The College receives vital donations towards scholarships each year which are pivotal n helping over 100 RWCMD undergraduate and postgraduate students achieve their educational ambition and prepare them for their future in their chosen industry. The College's regular giving programmes Connect and The Chairs. Circle continue to provide important unrestricted income for strategic priorities which assist with the development of the student experience at the College a5 well 3$ firbancial Jssistance for the student performance programme. Royal Welth CallegE of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 21

The College would like to send its sincere thanks to the many individuals. businesse5 and charitable trusts that have supported scholarships. bursaries. special projects. prizes and other College and student activities during the period. A full list of 5UPPOrters can be viewed on the College website: htt www.rwcmd.ac.uk su ort-us thank- ou. Wldenln8 Partl¢lpatlon Youn8 RWCMO After much consideration the College made the difficult decision in july 2024 to close its regular weekend musi¢ and drama provision for young people under 18. We have heard powerful individual stories of some of our Young participants and public concern expressed. which demonstrated how much people in Wales care about the role of music and drama in the lives of our young people. However. our decision was driven by the financial imperative we face. In the Welsh policy context and the reality of limited resource across the arts and education. RWCMD is not funded or tasked to provide a weekly seNice to school-age children. and there is a stark contrast with conservatoires in England that receive annual funding from the Music and Dance scheme for their specialist under-18 provision. 8ut we do recognise the importance of nurturing young talent, and particularly the importance of ensuring that young people with the greatest ability and potential. whatever their geographic and socio-economic backgrounds. are empowered to develop as part of the talent pipeline to the creative industries. That pipeline is vital in Wales both in terms of honouring and continuing to develop Wales, distinctive and well-known cultural strengths. and in feeding the future of the creative industries with its huge economic, social, cultural and political benefits for Wales. Our other work with young people continued and has reached almost 2.OC#J throughout Wales. since October 2022. This includes weekend immersive music workshops seeking to inspire participation from beginners through to emerging professionals Isupported by the Mosawi Foundation); the National Open Youth Orchestra Ensemble Residency lin partnership with BBC NOW and Open up Music): and holiday courses in Production Arts Iwhich continue to be sponsored by Bad Wolfl. We will continue to deliver sustainable project work in this field in future year. This work sits alongside significant engagement with schools and communities that is embedded within our degree cour5e5, ncludin8 through partnerships with orBanisations addressin8 societal di5advantage/deprivation such a5 Makin8 Music, Changing Lives in Ely, and the Oasis Centre in Splott. The College has a deep commitment to enri¢hing the tuliural lands¢ape of Wales and beyond, and the imperative to engage with young talent remains a central part of our ambition. Given the continuing financial challenge, we recognise the need to think and work differently. The College is now working to scope a new partnership appro8ch to supporting outstanding talent from acr055 Wale5, developing sustainable mode15 in music and drama that will best Serve youn8 people from all backgrounds. We plan to work closely in partnership with key national organisations.. National Youth Arts Wales INYAWI, the National Music Service for Wales INM5WI, the Urdd and Seren, and constructive discussions have already begun. We aim to map development pathways through to professional traininÈ laliÉning with, for example. the NMSW'S core objertive in relation to pathways), and to understand Whe￿ strengrhs and gaps lie and where RWCMD can play the most impactful, targeted role. We consider that within the wider ecology RWCMD has a vital role to play as a convener, partner, a reference point for quality. and a route for entry to profession31 music and drama training at Royal Welth CallegE of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 22

undergraduate and postgraduate levels. The College adds specific value. particularly for those identified with exceptional ability andlor potential. It can work through special events and partnership workshops that inspire, through access to specialist tuition and instruments/equipment where appropriate. and through mentorship with our students as well as giving young people the opportunity to taste and get to know conservatoire studv. Community En8agement By the end of this year, more than two dozen RWCMD residencies have now been established to support talent development for recent graduates and conservatoire musicians, Creating opportunities for venues and busine55 to expand their reach and appeal, and providing advanced student ensembles with scope to develop business and commercial skills for the future in collaboration with their host venue. All residencies are being renewed with re-engagement of resident ensembles and appointrnent of new artlsts. Health care settings have expanded the reach of our work with calls for interest enabling pilot work in City Hospice and Velindre Hospital. Residencies beyond Cardiff are growing and in 2024. a pilot residency forwind ensemble for Hay Castle Trust generated performances at Hay Castle. Hay Festival and with Hay Music Trust, taking outreach projerts into local schools to generate audiences for the Hay Music concert Series. Our residency series with Music in Country Churches I-MCC") continues to thrive, and in the summer, 105é Matias became the most recent performer from the Royal Welsh College of Music and Drama to play in a Music in Country Churches concert with Strauss's violin concerto with the English Chamber Orchestra under the baton of Koen Kessels. The residency pilot began in July 2021. at a concert in St Nicholas Church. Dersingham. Norfolk. Laura Deignan. clarinetist. and recipient of the Sir lan Stoutzker Prize played Gerald Finzi's Bagatelles with the English Chamber. Since that first concert. MCC has hosted six prizewinning R WCMD musicians at the start of their careers as professional musicians, including Mared Emyr Pugh-Evans whose professional solo debut was at an MICC concert in Holv Trinity, Minchinhampton in 2022. Mared was recently appointed Royal Harpist to Hi5 Majesty The King. Rhosygilwen Mansion. Pembrokeshire has established a new residency partnership for up to five jazz musicians to establish a dynamic in-house Ensemble. to become an integral part of the Rhosygilwen calendar of activity and the growin8 creative community in Pembrokeshire. Graduate jazz quartet Halfway successfully bid for the residency, and will be required to self-mana8e, workin8 Wlth the Rhosygilwen team. The vision for the Rhosy8ilwen resident musicians 15 through the offer of rehearsal and performance space on pre-agreed date5 to a group of enthusiastic individuals, as a desirable professional launchpad where participants can hone their craft arbd their practice as performers, and develop their profe55ional communication5, marketinB, art5 management, and business awarene55 in partnership with the Rhosygilwen team. The ensemble will help to build Jazz profile within the venue's artistic programme, and to grow professional experience and values as an ensemble, building a business in partnership with high commitment and organisation, self-managing as a team, and valuing the residency a5 a contract of engagement. This year we've also worked with colleagues across the College to provide support for Student Recruitment for young people with Protected Characteristics providing Open Day Support, increasing diversity of imagery in staff presentations. featuring recent graduates. We've held a number of workshops across the year. working with ethnically diverse young people and young people with disabilities. We have also worked in Merthyr Tydfil and Abercynon, focussing particularly on voung people facing economic and social disadvantage. Royal Welth CallegE of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 23

Our new Community Ticketing Scheme was launched this year enabling members of some of Cardiff's WIMD areas to access occasional free tickets to performances at RWCMD. Also, eligible (referred through approved agencies) are asylum seekers and refugees, disabled people, Tempo Time Credit network members. care experienced children and young people and groups and individuals supported by Race Council Cymru and Chinese in Wale5. The National Open Youth Orchestra INOYOI Cardiff Ensemble supported five auditioned members ranging from 12-23 years old during this academic year. Eleven Cardiff rehearsals fed into the UK network of NOYO Ensembles IBarbi¢an, Boumemouth, Birmingham, and Bristol) with opportunities for Cardiff members to participate in Collective NOYO projects between terms. Postgraduate student placements for RWCMD Arts Managers arhd advanced RWCMD students enabled deep interaction and peer-to peer mentorship for our NOYO musicians, supported through partnership with BBC NOW, who provide free concert tickets for NOYO social events, and BBC instrumental tutors when required. Two performances in sijrnmer 2024 showcased the work of our NOYO ensemble, and inereased audition applications were received. resulting in an ensemble of nine musicians for the 2024-2025 Academic Year. Royal Welth CallegE of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 24

Independerrt auditorfs report to the members of the Royal Welsh College of Music and Drama Limited Opinion We have audited the financial statements of the Royal Welsh College of Music and Drama Limited 1.the charitable comp3n¢l for the year ended 31 July 2024 which comprise the Statement of Comprehensive Income and Expenditure, the Statement of Changes in Reserves, the Balance Sheet, the Cash Flow Statement and note5 to the financial statements, including a Summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United KinÉdom Accounting Standards, including Financial Reporting Standard 102 rhe Finuncial Reporting Stondurd applicoble in the UK (Jnd Republic of Ireland (United Kingdom Generally Aceepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charitable compan￿$ affairs as at 31 July 2024 and of the charitable compan¢s net movement in funds. including the income and expenditure, for the year then ended; have been properly prepared in accor(Jance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with International Stsndards on Auditin8 IUKI IISAS IUKII and applicable law. Our responsibilities Under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, includin8 the FRC'S Ethi￿1 Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relatlng to golng concern In auditing the financial statements. we have concluded that the dirertors, use of the going concern bas15 of accounting in the preparation of the financial statements 1$ appropriate. Based on the work we have performed. we have not identified any material uncertainties relating to events or conditions that. individually or collectively. may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Other information The directors are responsible for the other information. The other infomiation comprises the nformation included in the Trustees, Report and the Chairfs Report. Our opinion on the financial statements doe5 not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statement5, our responsibility 15 to read the other information and, in doing so, consider whether the other infomiation is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materiallv Royal Welth CallegE of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 25

misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether there is a material misstatement in the financial statement5 or a material misstatement of the other information. If. based on the work we have performed, we conclude that there is a material misstatement of this other information. we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Art 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees, Report (which includes the strategic report and the directors. report prepared for the purposes of company lawl for the financial year for which the financial statements are prepared is consistent with the financial statements: and the strategic report and the directors. report included within the Trustees, Report have been prepared in accordance with applicable legal requirements. Matters on which we are requ5red to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit. we have not identified material misstatements in the Trustees, Report (which incorporates the stTate8ic report and the directors, report). We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 require5 US to report to you if, in our opinion.. adequate accounting records have not been kept by the charitable company; or the charitable company financial statements are not in agreement with the accountlng records and returns- or certain disclosures of directors, remuneration specified by law a￿ not made,. or we have not received all the infomiation and explanations we require for our audit Responslbllltles of dlrectors for the financlal ststements As explained more fully in ihe dire¢tors' responsibilities statement set out on page 19, the trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for bein8 satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the charitable companws ability to continue as a going concern. disclosing. as applicable. matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Audltorfs responslblllt5es for the audit of the flnandal statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error. and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in accordance with1SAs IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if. individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Royal Welth CallegE of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 26

Irregularities. including fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respert of irregularities. including fraud. The extent to which our procedures are capable of detecting irregularities. including fraud is detailed below: Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non<ompliance with laws and regulations related to compliance with company law and charitable law applicable to charitable companies in England and Wale5, we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Further and Higher Education SORP 2019, Companies Act 2006, the Charities Act 2011, taxation legislation and pensions legislation. We evaluated management's incentives and opportunities forfraudulent manipulation of the financial statements lincluding the risk of override of controls), and determined that the principal risks were related to the improper cut-off of revenue other than that from student fees and management override of controls. Audit procedures performed by the engagement team included.. Inspecting correspondence with ￿gUlatorS and tax authorities: Discussions with management including consideration of known or suspected instance5 of non-compliance with laws and regulation and fraud.. Evaluating management's controls designed to prevent and detect irregularities; Identifying and testing journals. in particular journal entries posted with unusual account ombinations, postings by unusual users or with unusual descriptions,. and Challenging assumptions andjudgements made by management in theiraccounting estimates Because of the inherent limitations of an audit. there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forBery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. ￿￿V.fIC.oT .uk auditor5re5 onsibilitie5. This description forms part of our auditorfs report. Royal Welth CallegE of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 27

Use of our report This report is made solelyto the charitablecompany's members, as a body. in accordance with Chapter 3 of Part 16 of the Companies Art 2006. Our audit work has been undertaken so that we might State to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or a55ume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for thi5 report, or for the opinions we have formed. Steve Harper Isenior Statutory Auditor) For and on behalf of Haysmac LLP, Ststuiory Auditor Dated.. 28 November 2024 10 Queen Street Place London EC4R IAG Royal Welth CallegE of MU￿[ and Dtarna ￿fftrted l Financkil stslEme￿tsand￿n￿UaI YearendEd al Juty2024 28

Royal Welsh College of Music and Drama Limited Statement of Comprehensive Income and Expendi￿re for the Year Ended 31 July 2024 Notes 2024 2023 £'OL £'ooo Income Tuition fees and education contracts Funding body grants Other income 10,728 4.277 2.333 446 10,255 4,411 1,966 273 Investment income Totsl Income before endowments and donatlons 17.784 16,905 Donations and endowments 4,392 3.981 Total Income 22.176 20,886 Expenditure Staff costs Other operating expenses Depreciation Interest and other flnance costs 9.573 8.883 1,269 342 9,055 9.656 1,123 444 li Total expendlture 20,067 20,277 Surplu5 before other gains and losse5 2.109 608 Gain on disposal of fixed assets Gain / Ilossl on investments 17 259 1831 Surplu5 for the year 2.368 533 Actuarial1105s1 / gain in respect of pension schemes 23 {411 2,913 Totsl comprehensive Incomellexpendlturel for the year Represented by.. Endowment comprehensive income Restricted comprehensive income for the year Unrestricted comprehensive lexpensel / income for the year 2.327 3.446 17 355 1,621 899 18 3.065 11,0931 926 2.327 3,446 All items of income and expenditure relate to continuing activities. 29

Royal Welsh ColleBe of Music and Drama ￿mited Staternent of Changes in Reserves loithe year ethded 31July 2024 IbKome ar￿ txpenthlreatt0￿t Rwdluation resenfe Total Endowment Restricted Unrestrirted Balance at l Augus¢ 2013 4.426 2￿)1 IA19 17.418 SurplusllDefititl for the year Othercomprehenswe incorne 355 11,0521 1411 2,368 8alantè at 31 July 2024 4.781 7.679 I￿19 19,745 30

Royal Welsh College of Music and Drama Limited Balan￿ Sheet a5 at 31 July 2024 (Company Registration: 060137441 Note5 2024 2023 £'ooo Non-current assets Tan8ible asset5 Heritage a55ets Other li li li 24,796 24,827 500 135 135 25.431 25.462 Current assets Stock Trade and other receivables Investments C05h and cash equlvalents 14 io 316 7,079 1,015 8,420 12 13 629 8,109 1,832 10,584 19 Credltors.. amounts falling due within one year Net current assets 14 14.183) 6AOI 13,8701 4,550 Tot•1 a55ets less current Ilabllltles 31.832 30.012 Credltors.. amounts fallln8 due after more than one year ProvS$lons Penslon provlsSons oiher provlsSons Total net a55ets 15 111,9151 112,4091 16 16 11711 19.746 11851 17,419 Restrlrted Reserves Income and expenditure re5erve- endowment reserve Income and expenditure reserve- restrirted reserve Unrestrlcted Reserves Income and expenditure reserve. unrestrlcted Revaluation reseNe 17 4,781 5,466 4,426 2,401 18 7.679 1.819 19.745 8,772 1,819 17,418 Share Capital Total Reserves 19,746 17,419 The financial statements on pa8e$ 29 to 49 were approved and authorised for issue by the Board on 25 November 2024 and signed on its behalf by.. Ml¢hael Plaut OBE Chair of Board of Governors 31

Royal Welsh Colle8e of Music and Drama Limtted Cash Flow Statement fortheyearended 31Juty 2024 Notc 2023 Cash flow Irom operètlngathltles Surplus before othergainsand10s5e5 Adlu$tmÈnt kn non4ash Itènk% li 1.123 Profiton dlsposal of fixed èssets Ilncrea5ellderrease In debto Ilncreasel Ioecrease in stock Inifease in tredittsys 12 12 14. 15 l4 354 13801 14 12931 Adjustment I￿vestI￿ orfln•nclniact6vh￿5 357 Endowment Income ijji e¢cash Inflowfr•m•p•Y•¢ini•thhl•s $05 Cash flows from Investln4 arthrttles Movement In Inve51ment5 Payment5 rnadeto acqulreflmd assets 370 li 11.Z191 Cash Ilowsfrom IN￿1￿£1￿￿11es lJ451 Endowment Income Rey¥ments ofamounts bormwed 1.675 {1921 Incre45elldecre4sel Inc•5h •nd c4shequl¥•knts1nthe￿r 817 Cash and cash eguivalenis ai be8innin6olthtyear Cash and cash equivalent5 at end oltheyear Mo¥4m•nt 19 19 1.453 1.015 I￿12 817 Asat IAu82023 ATraty51sof thanys In debt Cashfl¢)ws OlherChan8es A5at 31Jul 2024 Cash at bank and In hand Debt duewithin oneyear Debt duewithin moreihanoneyear I￿15 11921 .3781 817 L832 191 zoi {4.5S41 32

Royal Welsh College of Music and Drama Limited Financial Statements and Annual Review Year ended 31 July 2024

Notes to the financial statements for the year ended 31 July 2024

1 Basis of Preparation

The Company is a United Kingdom private company limited by shares. It is both incorporated and domiciled in England and Wales. The registered office address is Castle Grounds, Cathays Park, Cardiff, CF10 3ER. The Company is also registered as a charity with the Charity Commission under registered charity number 1139282. It is a subsidiary company of the University of South Wales which is its sole member.

The financial statements have been prepared on a going concern basis under the historical cost convention, modified by the revaluation of certain financial assets and liabilities at fair value, in accordance with the Companies Act 2006, as adapted to the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education 2019 and in accordance with the Financial Reporting Standards. The College is a public benefit entity and therefore has applied the relevant public benefit requirement of FRS102, the financial reporting standard applicable in the UK and Republic of Ireland (FRS 102). The principal accounting policies are set out below and have been applied consistently throughout the year.

Going Concern

The activities of the College, together with the factors likely to affect its future development and performance are set out in the Trustees’ report (which includes the Strategic Report). The financial position of the College, its cashflow, liquidity and borrowings are presented in the Financial Statements and accompanying notes to the accounts.

The Directors have reviewed the College’s cash flow forecasts for a period of at least twelve months from the date of approval of these financial statements (the going concern assessment period). After reviewing these forecasts, including compliance with current banking covenants and considering whether there are any material uncertainties, the Board are of the opinion that, taking account plausible downsides which reflect the risks and uncertainties described in this Trustees report and specifically in section 4.4, the College will have sufficient funds, to meet its liabilities as they fall due over the period reviewed. Accordingly, the financial statements have been prepared on a going concern basis.

33

Royal Welsh College of Music and Drama Limited Financial Statements and Annual Review Year ended 31 July 2024

Notes to the financial statements for the year ended 31 July 2024

2 Accounting policies

Income recognition

Income from tuition fees is recognised over the period in which students are studying and includes all fees chargeable to students or their sponsors. Where the amount of the tuition fee is reduced by a discount for prompt payment, income receivable is shown net of any discount.

Income from the sales of goods and services is credited to the Statement of Comprehensive Income and Expenditure when the goods or services are supplied to the external customers or the terms of the contract have been satisfied.

Investment income is credited to the income and expenditure account on a receivable basis.

Grant Funding

Government grants, including funding council block grant, are recognised in income over the periods in which the College recognises the related costs for which the grant is intended to compensate. Where part of a government grant is deferred, it is recognised as deferred income within creditors and allocated between creditors due within one year and due after more than one year as appropriate.

Donations and Endowments

Non exchange transactions without performance related conditions are donations and endowments. Donations and endowments with donor imposed restrictions are recognised in income when the College is entitled to the funds. Income is retained within the restricted reserve until such time that it is utilised in line with such restrictions. Donations with no restrictions are recognised in income when the College is entitled to the funds.

Investment income and appreciation of endowments is recorded in income in the year in which it arises and as either restricted or unrestricted income according to the terms applied to the individual endowment fund.

The main types of donations and endowments identified within reserves are:

1. Restricted donations – the donor has specified that the donation must be used for a particular objective

2. Unrestricted permanent endowments – the donor has specified that the fund is to be permanently invested to generate an income stream for the general benefit of the College

3. Restricted permanent endowments – the donor has specified that the fund is be permanently invested to generate an income stream to be applied to a particular objective

4. Unrestricted donations – the donor has not specified conditions associated with the donation

Capital grants

Government capital grants are recognised in income over the expected useful life of the asset under the accruals method. Other capital grants are recognised in income when the College is entitled to the funds subject to any performance conditions being met.

34

Royal Welsh College of Music and Drama Limited Financial Statements and Annual Review Year ended 31 July 2024

Notes to the financial statements for the year ended 31 July 2024

2 Accounting policies (continued)

Accounting for retirement benefits

The two principal pension schemes for the College’s staff are the Teachers’ Pension Scheme (“TPS”) and Rhondda Cynon Taff Pension Fund (“RCTPF”), a Local Government Pension Scheme (“LGPS”). RCTPF is a defined benefit scheme which is externally funded.

TPS is a multi-employer scheme, and it is not possible to identify each institution’s share of the underlying liabilities in relation to the TPS and hence, contributions to the scheme are accounted for as if this was a defined contribution scheme, any cost recognised within the income statement being equal to the contributions payable to the scheme for the period.

Under IAS 19, the College considers the recoverability of any pension surplus and determines if there is any economic benefit available to the company to enable the recovery of this. Where the College believes there is no economic benefit, this surplus is not recognised as a recoverable asset.

Employment Benefits

Short term employment benefit such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to the College. Any unused benefits are accrued and measured as the additional amount the College expects to pay as a result of the unused entitlement. Where the calculation results in a net asset, recognition is limited to the extent to which the College is able to recover the surplus either through reduced contributions in the future or through refunds.

Early Retirement Provision

The Company maintains a provision to meet pension costs arising from the additional years of service granted to certain staff taking early retirement.

Provisions are established and the associated costs are charged to the income and expenditure account when the College has a legal or constructive obligation. The provision relates to enhanced teachers’ unfunded pension arrangements established by the College. These are termination benefits made on a discretionary basis upon early retirement, in respect of the Teachers Pension Scheme.

Operating Leases

Costs in respect of operating leases are charged on a straight-line basis over the lease term. Any lease premiums or incentives are spread over the minimum lease term.

Tangible Fixed Assets

Tangible fixed assets are initially recorded at purchase cost, including non-recoverable VAT, incidental costs of acquisition, less accumulated depreciation.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated residual value of each asset, evenly over its expected useful life, as stated below. Depreciation is charged for a full year within the year that the asset becomes available for use.

35

Royal Welsh College of Music and Drama Limited Financial Statements and Annual Review Year ended 31 July 2024

Notes to the financial statements for the year ended 31 July 2024

2 Accounting policies (continued)

All fixed assets are reviewed for indicators of impairment at each balance sheet date.

Land and buildings

Land and buildings inherited from Royal Welsh College of Music and Drama Higher Education Corporation are stated in the balance sheet at their net book value on transfer.

As at 1 August 2014 asset lives were reassessed and revised depreciation rates applied to the net book value as at that date. The original Raymond Edwards building is being depreciated over 35 years, with the additional facilities being depreciated over 50 years, which is the expected remaining useful economic life.

Land was revalued to fair value on 1 August 2014, the date of transition to the 2015 Further and Higher Education SORP, resulting in a revaluation reserve of £1,819,000. Land, whether freehold or leasehold, is not depreciated as it is considered to have an indefinite useful life.

Long leasehold buildings are depreciated over the shorter of the lease term and expected useful life.

Buildings under construction are capitalised at cost. Interest on loans used to fund capital projects is capitalised until such projects are brought into use. No depreciation is charged, until the year in which buildings under construction are brought into use.

Fixtures, fittings and plant and machinery

Equipment costing less than de minimis of £1,000 per individual item, is recognised as expenditure. All other equipment is capitalised.

Capitalised equipment is stated at cost, including non-recoverable VAT, and is depreciated over its expected useful life, as follows:

expected useful life, as follows:
Category of asset	Depreciation rate
Fixtures and fittings	7years straight line
Plant and machinery	Between 3-10years straight line

Heritage Assets

Heritage assets are tangible assets with an historical, artistic, scientific, technological, geophysical or environmental quality that are held and maintained principally for their contribution to knowledge and culture. Heritage assets are those assets that are intended to be preserved in trust for future generations because of their cultural, environmental and historical associations.

Heritage assets acquired since College formation have been capitalised to the balance sheet at initial cost. Donated heritage assets are recorded at estimated valuation at the date of donation unless this is not practicable, in which case the appropriate disclosures are made of the nature and the extent of these donations. In subsequent periods, heritage assets are held at cost less any identified impairment.

Information on the valuation of Heritage assets is set out in note 11.

36

Royal Welsh College of Music and Drama Limited Financial Statements and Annual Review Year ended 31 July 2024

Notes to the financial statements for the year ended 31 July 2024

2 Accounting policies (continued)

Investments

Investments are held at fair value with movements recognised in income and expenditure.

Cash

Cash includes cash in hand and cash equivalents.

Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value.

Taxation

The College is a charity registered with the Charity Commission number 1139282 and as such is a charity within the meaning of Para 1 of Schedule 6 to the Finance Act 2010. Accordingly, the College is potentially exempt from taxation in respect of income or capital gains received within categories covered by Sections 478 to 488 of the Corporation Taxes Act 2010 (CTA 2010) (formerly enacted in Section 505 of the Income and Corporation Taxes Act 1988 (ICTA) or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to exclusively charitable purposes. The College receives no similar exemption in respect of Value Added Tax.

Loans

Loans received that either do not accrue interest or where interest is charged at less than a market rate are considered public benefit entity concessionary loans. These loans are recognised initially at the amount of cash received and are subsequently adjusted to reflect accrued interest payable.

Reserves

Reserves are classified as Restricted or Unrestricted. Restricted endowment reserves include balances which, through endowment to the College, are held as a permanently restricted fund which the College must hold in perpetuity.

Other restricted reserves include balances where the donor has designated a specific purpose and the College is restricted in the use of these funds.

Use of estimates and judgements

The preparation of Financial Statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses. Actual amounts may differ from the estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

37

Royal Welsh College of Music and Drama Limited

Notes to the financial statements

for the year ended 31 July 2024

----- Start of picture text -----
2024 2023
3 Tuition fees and education contracts Notes £'000 £'000
Full-time home students 6,301 6,596
Full-time international students 3,906 3,095
Short Course Fees 521 565
10,728 10,255
2024 2023
4 Funding body grants £'000 £'000
Higher Education Funding Council 3,984 4,030
Amortisation of Deferred Capital grant 293 380
4,277 4,411
2024 2023
5 Other income £'000 £'000
Catering 828 836
Rental income 131 13
Other income 1,374 1,117
2,333 1,966
Included in other income is box office (ticketing) and venue hire income
2024 2023
6 Investment income £'000 £'000
Investment income on endowments 17 117 90
Other investment income 329 184
446 273
2024 2023
7 Donations and endowments £'000 £'000
Endowment income (new endowments) 17 33 1,675
Donations with restrictions 18 3,724 1,627
Unrestricted donations 635 680
4,392 3,981
----- End of picture text -----

38

Royal Welsh College of Music and Drama Limited

Notes to the financial statements for the year ended 31 July 2024

8 Staff costs Staff Costs Salaries Social security costs Other pension costs Total	2024 2023 £'000 £'000 7,465 6,825 685 629 1,423 1,600 9,573 9,055

Included in other pension costs are £1,052k (2023 : £911k) for defined contribution schemes.

Staff costs above include redundancy costs of £415k (2023: £Nil).

Further to the amounts shown above, the College was charged £2,615k (2023: £1,900k) for services provided by PSS* These costs are reported in other operating expenses in the Statement of Comprehensive Income and Expenditure.

*Professional and Support Services Limited ("PSS") is a wholly owned subsidiary of the University of South Wales and provides professional and support services (principally staff) to RWCMD.

Remuneration of directors and higher paid employees (a) Directors and higher paid employees: Salary Benefits Pension contributions to LGPS (b) Emoluments of the Principal: Salary Benefits Pension contributions to LGPS Remuneration of the Principal of the College expressed as: Basic salary as a multiple of the median basic salary of all staff Total remuneration as a multiple of the median total remuneration to all staff Remuneration of higher paid staff (excluding employer's pension contributions): £100,000 to £109,999 £110,000 to £119,999 £160,000 to £169,999 £170,000 to £179,999

2024 2023 £'000 £'000 320 324 3 3 57 57 380 384 2024 2023 £'000 £'000 170 164 3 3 29 27 202 194 2024 2023 4.21 4.43 4.05 5.12 Number Number - 1 1 - - 1 1 -

Number of full time equivalent staff during the year by major category, including senior post-holders:

Academic Other	2024 2023 109 116 66 60 175 176

In addition to the above, the numbers of full time equivalent staff employed by PSS and providing services during the year to RWCMD was 83 (2023: 63).

39

Royal Welsh College of Music and Drama Limited

Notes to the financial statements for the year ended 31 July 2024

8 Staff costs (continued)

Average headcount equivalent staff numbers by major category, including senior post-holders:

Academic Other	2024 2023 234 221 80 91 314 312

Average headcount of staff employed by PSS and providing services during the year to RWCMD was 132 (2023: 150).

Trustee expenses

The College's Board members are the Trustees for charitable law purposes.

No Trustee or other person related to the Charity had any personal interest in any contract or transaction entered into by the Charity during the year.

The total expenses paid to or on behalf of Trustees was £4,383 (2023 - £1,046).

40

Royal Welsh College of Music and Drama Limited

Notes to the financial statements for the year ended 31 July 2024

----- Start of picture text -----
2024 2023
9 Interest and other finance costs £'000 £'000
Loan interest 345 357
Net (credit)/ charge on pension scheme (see note 23) (3) 87
342 444
2024 2023
10 Analysis of total expenditure by activity £'000 £'000
Academic and related expenditure 12,143 12,418
Administration and central services 3,139 3,670
Premises 3,017 2,716
Residences, catering and conferences 789 418
Other expenses 979 1,055
20,067 20,277
Other operating expenses included:
Restated [1]
2024 2023
£'000 £'000
External auditor's remuneration in respect of audit services 28 34
External auditor's remuneration in respect of non audit services 5 5
Operating lease rentals - other 258 254
----- End of picture text -----

1. 2023 operating lease rentals corrected to include annual rent payable for workshop premises and excludes service costs on the piano lease.

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Royal Welsh College of Music and Drama Limited

Notes to the financial statements for the year ended 31 July 2024

11 Tangible Assets

Cost or valuation Restated 1 At 1 August 2023 Additions Disposals At 31 July 2024 Accumulated depreciation Restated 1 At 1 August 2023 Charge for the year Disposals At 31 July 2024 Net book value At 31 July 2024 At 31 July 2023	Freehold Land and Buildings £'000 27,893 - - 27,893 6,612 469 - 7,081 20,812 21,281	Leasehold Land and Buildings £'000 2,667 811 - 3,478 1,344 110 - 1,454 2,024 1,323	Plant and Machinery £'000 4,920 288 - 5,208 3,132 576 - 3,708 1,500 1,788	Fixtures, Fittings and Equipment £'000 1,661 140 - 1,801 1,227 114 - 1,341 460 434	Total £'000 37,141 1,239 - 38,380 12,315 1,269 - 13,584 24,796 24,827

Included in the net book value of fixed assets is aggregated interest capitalised of £266k (2023 - £274k).

Heritage Assets

Cost At 1 August 2023 At 31 July 2024	Heritage Assets £'000 500 500	Total £'000 500 500

The Heritage Assets stated above are the Foyle Opera Rara Collection. The College acquired the collection from Opera Rara in 2018 following a major grant from the Foyle Foundation for a purchase price of £500,000. The Collection had previously been valued by Christie's in 2016 and at that time it was thought if the entire collection was negotiaed en bloc for sale , this could achieve a sales price between £415,000 - £545,000.

Opera Rara

Opera Rara is a UK based opera company founded by Patric Schmidt and Don White in the early 1970's. The company specialise in bringing rare and forgotten operas back to life. The Opera Rara catalogie comprises over 100 titles, including 60 complete opera recordings and their work has led to a fundamental revaluation of the reputation of Donizetti, Pacini, Offenbach and Mercadante, changing the way in which these composers are perceived internationally.

Foyle Opera Rara

The collection was largely amassed by the founders who travelled through Europe, scouring music shops and book shops, collecting items they thought were interesting. Because of this, the collection is extremely varied.

The collection is free to access and open to everyone. Items from the collection are put on public display from time to time in various temporary exhibitions.

The College is currently in the process of cataloguing the collection and maintains the condition of the collection by housing it within a designated and managed area. The Collection is currenly stated it's purchase price and insurance valuation at the year end date. The Trustees review this annually and do not consider there has been any impairment to the collection at the balance sheet date.

Other Assets

The College has placed a £135,000 bond payment as security against the 20 year lease of its workshop in North Cardiff.

1. 2023 Leasehold Land and Buildings opening balances (cost and accumulated depreciation) adjusted to include Assets Under Construction (planning and design fees on the Old Library capital redevelopment). Previously included in Plant and Machinery.

42

Royal Welsh College of Music and Drama Limited

Notes to the financial statements for the year ended 31 July 2024

12 Trade and other receivables

Amounts falling due within one year: Trade receivables Other receivables Prepayments and accrued income Amounts due from parent undertaking	2024 £'000 150 2 399 78 629	2023 £'000 154 3 126 34 316

The amounts due from parent undertaking are interest free and repayable on demand.

13 Investments

Short term investment in shares Short term bonds	2024 £'000 3,584 4,525 8,109	2023 £'000 3,140 3,940 7,079

14 Creditors : amounts falling due within one year

2024 £'000 Secured loans 201 Amounts owed to parent undertaking 22 220 Other creditors 214 Trade payables 637 Social security and other taxation payable 154 Accruals and deferred income 2,757 4,183	2023 £'000 192 57 182 464 160 2,815 3,870

The amounts owed to parent undertaking are interest free and repayable on demand.

Deferred income

Accruals and deferred income include other income which has been deferred until specific performance related conditions have been met and deferred capital grants, which are released on a consistent basis over the useful lives of the related assets.

Other income Deferred capital grants (see notes 4 and 5)	2024 £'000 491 293 784	2023 £'000 412 380 792

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Royal Welsh College of Music and Drama Limited

Notes to the financial statements for the year ended 31 July 2024

15 Creditors : amounts falling due after more than one year

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|||| |---|---|---| |2024|2023| |£'000|£'000| |Deferred capital grant|6,738|7,031| |Secured loans|5,177|5,378| |11,915|12,409| |Analysis of secured loans:| |2024|2023| |£'000|£'000| |Due within one year or on demand (as per Note 14)|201|192| |Due between one and two years|211|201| |Due between two and five years|700|665| |Due in five years or more|4,266|4,512| |Due after more than one year|5,177|5,378| |Total secured and unsecured loans|5,378|5,569| |Secured loan repayable by 2041*|5,378|5,569| |5,378|5,569|

----- End of picture text -----

Included within the total balance above is the following due in more than two years

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||||||| |---|---|---|---|---|---| |2024|2023| |Interest|Repayment|Term|£'000|£'000| |Barclays Bank| |All tranches|6.33%|Quarterly|33 years|4,966|5,177| |(to 2041)|

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• The interest rate on the secured loan is fixed at 6.33% until August 2024 and then reverts to 5.34% for the remaining term of the loan.

• The terms of the secured loan agreement provides that the Bank may require the College to grant a charge on the land and buildings owned by the College if certain covenants are breached.

There is currently no charge registered in this regard and based on the College's projections the Trustees consider it unlikely that the circumstances will arise within 12 months from the date of approval of these financial statements, which would require such a charge to be granted.

16 Provisions for liabilities

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|||||| |---|---|---|---|---| |Pension scheme|Defined Benefit|Other Provisions|Total| |provision under|Enhanced Provision| |FRS102| |£'000|£'000|£'000|£'000| |At 1 August 2023|-|150|35|185| |-|-| |Reduction in year|(see note 23)|(14)|(14)| |At 31 July 2024|-|136|35|171|

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Other provisions includes an estimate for the future dilapidation remedial works on a College rented property. The estimated cost is reviewed on an annual basis.

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Royal Welsh College of Music and Drama Limited

Notes to the financial statements for the year ended 31 July 2024

17 Endowment Reserves

Restricted net assets relating to endowments are as follows:

Opening Balances Capital Accumulated income Endowment income Investment income Expenditure Increase / (decrease) in market value of investments Total endowment comprehensive income for the year Closing Balances Represented by: Capital Accumulated income Analysis by type of purpose: Scholarships and prize funds Analysis by asset Current asset investments Cash and cash equivalents

Restricted permanent endowments Unrestricted permanent endowments Year to 31 July 2024 Year to 31 July 2023 Total Total £'000 £'000 £'000 £'000 2,047 2,063 4,110 2,519 93 223 316 286 2,140 2,286 4,426 2,805 33 - 33 1,675 57 61 118 90 (7) (48) (55) (60) 125 134 259 (83) 208 147 355 1,621 2,348 2,433 4,781 4,426 2,206 2,197 4,403 4,111 142 236 378 315 2,348 2,433 4,781 4,426 2,348 2,433 4,781 4,426 2,348 2,433 4,781 4,426 4,467 4,035 314 391 4,781 4,426

18 Restricted Reserves

Opening Balances New donations Expenditure Total net restricted comprehensive income for the year Closing balances	Year to 31 July 2024 Year to 31 July 2023 Total Total £'000 £'000 2,401 1,501 3,724 1,627 (659) (727) 3,065 899 5,466 2,401

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Royal Welsh College of Music and Drama Limited

Notes to the financial statements for the year ended 31 July 2024

18 Restricted Reserves (continued)

Analysis of other restricted funds /donations in the year by type of purpose: Scholarships and prize funds Specific projects Old Library capital development Other Cash and cash equivalents Cash and cash equivalents	Restated 1 2024 2023 £'000 £'000 615 1,006 53 91 3,000 500 56 30 3,724 1,627 At 1 August Net Cash At 31 July 2023 Flows 2024 £'000 £'000 £'000 1,015 817 1,832 1,015 817 1,832

19 Cash and cash equivalents

20 Lease obligations

Total rentals payable under operating leases:

Payable during the year Future minimum lease payments due: Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years Total lease payments due	Restated 2 2024 2023 £'000 £'000 258 254 289 258 1,184 1,079 2,865 2,997 4,338 4,334

The College entered into a 99-year lease with Cardiff Council on 23 June 2023 in respect of the Old Library in Cardiff City Centre with annual rental payments of £133,000. There is now a strong expectation (subject to final negotiations) that the College and Cardiff Council will agree a variation to the lease, in 2024/25, which will remove the remaining rental obligations for the remaining term of the lease. Therefore, the above table excludes any future obligations in this regard.

21 Related Parties

As the College is a wholly owned subsidiary of the University of South Wales, the College has taken advantage of the exemption contained in FRS102 Section 33 and has therefore not disclosed transactions or balances with other wholly owned subsidiaries which form part of the Group (or investees of the Group qualifying as related parties).

A close family member of the Chair of Governors is employed by the College and was remunerated, at an arm's length basis, £2,209 for their teaching services. There are no other related party transactions to be reported.

22 Ultimate Parent Undertaking

The ultimate parent undertaking and controlling party is the University of South Wales, a Higher Education Corporation established under the Education Reform Act 1988. The results of the College have been incorporated in the University of South Wales' consolidated financial statements, which forms the largest and smallest group for which the College's financial statements are consolidated. Copies of the USW consolidated financial statements can be obtained from the following address:

University of South Wales, Pontypridd, Wales. CF37 1DL.

1. 2023 analysis of other restricted funds /donations by type of purpose corrected to show breakdown of donations, rather than breakdown of restricted expenditure which was incorrectly shown in the prior year.

2. 2023 operating lease rentals corrected to include annual rent payable for workshop premises and excludes service costs on the piano lease.

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Royal Welsh College of Music and Drama Limited

Notes to the financial statements for the year ended 31 July 2024

23 Pension Schemes

The College participates in two pension schemes, the Rhondda Cynon Taff Pension Funds (RCTPF), a local government pension scheme for non academic staff and the Teachers' Pension Scheme (TPS) for academic staff.

Teachers' Pension Scheme

TPS is a statutory contributory final salary scheme administered by the Teacher's Pensions Agency on behalf of the Department for Education and Skills. Under the TPS, which is an unfunded scheme, employees and employers contributions are credited to the Exchequer under the arrangements governed by the Superannuation Act 1992. Every 5 years the Government Actuary's Department (GAD), using normal actuarial principles conducts an actuarial review of the TPA.

The assumptions and other data that have the most significant effect on the determination of the contributions levels are as follows:

Latest actuarial valuation

31 March 2020

Valuation of the assets at date of last valuation £222.2 million (estimated future contributions together with notional investments held at 31 March 2020).

The contribution rate increased from 23.68% to 28.68% on 1 April 2024.

Under the definitions set out in Financial Reporting Standard 102 (FRS102) the TPS is a multi-employer pension scheme and the College is unable to identify its share of the underlying assets of the scheme.

Accordingly the College has taken advantage of the exemption in FRS102 and has accounted for its contributions to the scheme as if it were a defined-contribution scheme. The College has set out the above information available on the deficit in the scheme and the implications in terms of the anticipated contributions rates.

Rhondda Cynon Taff Pension Scheme

The scheme is a defined benefit occupational pension scheme. Pre April 2014 benefits are linked to final pensionable salary and service at date of retirement (or date of leaving the scheme if earlier). Post March 2014 benefits accrue on a Career Average Revalued Earnings (CARE) basis.

The scheme is valued every three years, the latest having been undertaken by independent consulting actuaries, Aon Hewitt, as at 31 March 2022.

Assumptions

The financial assumptions used to calculate the RCTPF scheme liabilities under FRS102 are:

	2024	2023
	% pa	% pa
Price Inflation (CPI)	2.70	2.85
Rate of increase in pensionable salaries	3.70	3.85
Discount rate/interest income on assets	5.00	5.10

Assumptions for the current accounting period have been chosen with reference to the duration of the Employer's liabilities. This has been estimated as approximately 20.8 years.

The most significant non-financial assumption is the assumed level of longevity. The table below shows the life expectancy assumptions used in the accounting assessments based on the life expectancy of male and female members at age 65.

		2024			2023
	Males		Females	Males		Females
Pensioner aged 65	21.5		24.1	20.9		23.6
Active member aged 65	22.8		25.6	21.8		24.7

47

Royal Welsh College of Music and Drama Limited

Notes to the financial statements

for the year ended 31 July 2024

23 Pension Schemes (continued)

The assets in the RCTPF scheme are valued at fair value and comprise:

Equities Government bonds Corporate bonds Property Other Cash Total Analysis of the amount shown in the balance sheet for RCTPF pensions: Fair value of fund assets Present value of defined benefit obligation Pension asset before adjustments Effect of asset ceiling (FRS 102 para 28.22) Net pension asset/(liability) recognised on Balance Sheet	2024 £'000 12,502 2,179 2,882 1,183 373 29 19,148 2024 £'000 19,147 (16,325) 2,822 (2,822) -	2023 £'000 12,208 1,685 2,067 1,233 156 17 17,366 2023 £'000 17,366 (16,146) 1,221 (1,221) -

The Trustees have considered the recoverability of the surplus and do not believe there is any foreseeable likelihood of any economic benefit to the College. Therefore, the IAS approach has been taken not to recognise this surplus in the financial position of the College and to cap the surplus to £Nil as considered acceptable under FRS 102.

2024 £'000 Current service cost 365 Past service and administration charges 12	2023 £'000 682 12
Total operating charge 377	694
Analysis of the amount charged to interest payable/credited to other finance income for RCTPF pensions: 2024 £'000 Interest cost 816 Expected return on assets (826)	2023 £'000 672 (589)
Net (credit) / charge to other finance income (10)	82
Payments to the Fund (413)	(413)
(Credit) / charge to Income and Expenditure Statement (46)	364
Analysis of other comprehensive income for RCTPF pensions: 2024 £'000 Gains/ (losses) on assets 855 Experience gain / (loss) on liabilities 701 Experience (loss)/ gain on liabilities (Enhanced Provision on Termination) (6)	2023 £'000 (200) 4,339 (6)
1,550	4,133

48

Royal Welsh College of Music and Drama Limited

Notes to the financial statements

for the year ended 31 July 2024

----- Start of picture text -----
23 Pension Schemes (continued)
History of experience gains and losses – RCTPF pensions
2024 2023 2022 2021 2020
Difference between actual and expected return on scheme assets (£m) 855 (200) (2,253) 3,314 803
Experience losses/(gains) on scheme liabilities (£m) 701 4,339 10,438 (3,241) (1,082)
Cumulative actuarial loss recognised as other comprehensive income for RCTPF 2024 2023
£'000 £'000
Cumulative actuarial (gains) / losses recognised at the start of the year (9,454) (5,314)
Cumulative actuarial (gains) / losses recognised at the end of the year (11,009) (9,454)
Analysis of movement in (deficit) / surplus for RCTPF pension 2024 2023
£'000 £'000
-
Deficit at beginning of year (2,555)
Contributions or benefits paid by the College 413 413
Current service cost (365) (682)
Other finance charge (2) (95)
Actuarial gain recognised in other comprehensive income 1,556 4,139
Surplus at end of year 1,602 1,221
Effect of asset ceiling (FRS102 para 28.22) (1,602) (1,221)
Net pension asset recognised on Balance Sheet - -
Analysis of movement in the present value of LGPS liabilities 2024 2023
£'000 £'000
Present value of RCTPF liabilities at the start of the year 16,146 19,247
Current service cost (net of member contributions) 365 682
Interest cost 815 672
Actual member contributions (including notional contributions) 206 209
Actuarial (gain) / loss (701) (4,339)
Net benefits paid (506) (323)
Past service costs - -
Present value of RCTPF liabilities at the end of the year 16,325 16,146
Analysis of movement in the fair value of scheme assets 2024 2023
£'000 £'000
Fair value of assets at the start of the year 17,366 16,690
Expected return on assets 826 589
Actuarial (loss) / gain on assets 855 (200)
Actual contributions paid by College 413 413
Actual member contributions (including notional contributions) 206 209
Net benefits paid (506) (323)
Administration expenses (12) (12)
19,148 17,366
RCTPF assets do not include any of the College’s own financial instruments, or any property occupied by the College.
Actual return on Scheme assets 2024 2023
£'000 £'000
Expected return on Scheme assets 826 589
Asset gain /( loss) 855 (200)
1,681 390
----- End of picture text -----

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