**THE ROYAL OPERA HOUSE BENEVOLENT FUND REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

**Registered Charity No. 1193337** 

**AZETS AUDIT SERVICES Azets River House 1 Maidstone Road Sidcup Kent DA14 5RH** 



## **THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

## **CONTENTS** 

||**Page**|
|---|---|
|Charity Information|1|
|Report of the Trustees|2 – 6|
|Independent Auditor’s Report|7 - 9|
|Statement of Financial Activities|10|
|Balance Sheet|11|
|Notes to the Financial Statements|12 - 18|





**THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

## **REFERENCE AND ADMINISTRATIVE DETAILS** 

|**Trustees**|Mr Oliver Parr (Chairman)|
|---|---|
||Mrs Tessa King-Farlow (Vice-Chairman)|
||Mr Alex Beard CBE|
||Mr Neil Dolby|
||Mr Greg Jauncey|
||Mr Andrew Kaufman MBE|
||Mr James Parry|
||Ms Eleanor Sepanski|
||Mrs Nicki Spencer|
|**Charity Registration Number**|1193337|
|**Principal Office**|Royal Opera House|
||Covent Garden|
||London|
||WC2E 9DD|
|**Key Management**|Matthew Dewhirst – Secretary|
||Maureen Baker – Welfare & Administration Officer|
||Rose Goodman – OHU Advisor (To June 2023)|
||Julie Hayes – Interim OHU Advisor (From June 2023 to February|
||2024)|
||Jyoti Patel – Interim OHU Advisor (From August 2023 to January|
||2024)|
||Ellen Bosega – Interim OHU Advisor (From February 2024)|
|**Banker**|Coutts & Co|
||440 Strand|
||London|
||WC2R 0QS|
|**Statutory Auditor**|Azets Audit Services|
||River House|
||1 Maidstone Road|
||Sidcup|
||Kent|
||DA14 5RH|
|**Investment managers:**|BlackRock Advisors (UK) Limited|
||12 Throgmorton Avenue|
||London|
||EC2N 2DL|
||Newton Investment Management Limited|
||160 Queen Victoria Street|
||London|
||EC4V 4LA|
||Ruffer LLP|
||80 Victoria Street|
||London|
||SW1E 5JL|
||Trojan Asset Management|
||33 Davies Street|
||London|
||W1A 5JA|



1 



## **THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

## **REPORT OF THE TRUSTEES** 

The Trustees present their statutory report with the financial statements of The Royal Opera House Benevolent Fund (“the Fund”) for the year ended 31 March 2024. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the Fund. 

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice. 

## **OBJECTIVES AND ACTIVITIES** 

## **Objectives** 

The objects of the Fund are, for the public benefit, the prevention of poverty, the advancement of education and the advancement of health principally by providing financial or other assistance (including help with re-training) to past or present employees or engagees of the Royal Opera House (“ROH”) or the Birmingham Royal Ballet (“BRB”) or their dependents who are in financial need. The Fund may provide grant funding to charities and organisations in order to support such individuals or their dependents, as well as artists and/or other persons employed by a company that gives performances of opera, ballet or music. In addition, the Fund may make grants to any charity or organisation involved with education in the fields of opera, ballet or music or do all such other things to promote the objects as the Trustees may decide 

## **Activities** 

The key activities of the Fund are as follows: 

## _Charitable Activities_ 

Grants to individuals (including loans) and organisations, and regular monthly payments to retired ROH or BRB employees and their dependents remain the principal activities of the Fund. In addition, the Fund, on behalf of ROH employees, has fully funded the fees of Care First – a confidential counselling service – and continues to support the ROH Occupational Health Unit. 

## _Fundraising Activities_ 

The Fund was originally established in 1961 as a registered charity with the prime object of assisting retired Royal Opera House employees at a time when there was no general occupational pension scheme available. The generous funding from successive galas in the first two decades of its existence has enabled the Fund, to date, to be self-financing from its investments without any further major fundraising. 

## _Governance Activities_ 

The day-to-day running of the Fund is vested in the Secretary and includes maintaining the financial records and ensuring that all constitutional and statutory requirements are met. 

Whilst the Fund operates from within the ROH and assists past and present members of the ROH and BRB, it is not a related party although Alex Beard CBE (a Trustee) is the CEO of the ROH. 

## **ACHIEVEMENTS AND PERFORMANCE** 

## **Achievements** 

In the year to 31 March 2024, the Fund provided a total of £288k in direct grant payments (22/23: £533k). These payments were made up of allowances to long-term beneficiaries, grants to short-term beneficiaries and a number of awards to other charitable organisations. 

Regular monthly allowances to retired ROH/BRB employees and their dependents remain an important activity and the number of beneficiaries assisted in this way during the period was 12. These payments (a total of £86k in 23/24, £68k in 22/23) are made mainly to those struggling to get by on inadequate or non-existent occupational pensions. In addition, the Fund offers practical advice and support to beneficiaries and, through its Welfare & Administration Officer, provides home visits for comfort and support to UK-based beneficiaries. 

2 



## **THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

## **REPORT OF THE TRUSTEES** 

## **Achievements – continued** 

During the year, the Fund provided £54k in short-term grants to 33 (22/23: 33) individual beneficiaries to assist with issues such as recovery from injury, unemployment and unforeseen items of expenditure. At the end of the period the Fund was supporting nine remaining beneficiaries of these short-term grants, and it is anticipated that a small number of these will become longer-term beneficiaries. 

Support to other charitable organisations included grants of £49,650 to Dancers’ Career Development (DCD), in support of its Evolve Workshops and its career and personal coaching sessions, and £25,000 to the Royal Ballet School for its Healthy Dancer Programme. The Fund continued its commitment to provide educational grants to the Sloane Square Choral Society (£3,750) and to Ex-Cathedra (£6,500). A new award to the Chelsea Chamber Choir of £2,000 p.a. for 3 years was approved by the Trustees to help with the costs of engaging young soloists and musicians who perform with the choir during its season. 

During the period, a decision was taken by the Trustees that the Fund would scale back its grants to organisations for the time being. Accordingly, the Fund is no longer funding the commitments of the ROH or the BRB to DCD, although as noted above, it continues to support DCD directly. Moreover, the Fund’s grant of £61k to the BRB was maintained to help fund health screening initiatives, sports psychology, nutrition, occupational health and a dedicated staff resource devoted to health and wellbeing. A separate grant was approved to fund the BRB’s employee assistance programme provided by Care First. The Fund is also pleased to continue to support the ROH Occupational Health Unit, with an accumulated grant spend of £62k (22/23: £132k). This grant funds weekly visits by an osteopath, physiotherapist and acupuncturist for the benefit of ROH employees, as well as the ROH’s employee assistance programme provided by Care First. 

During the period, the Fund was able to help and support all applicants who came within the objectives and criteria referred to above, as well as providing practical advice and support. The total cost of its direct charitable expenditure was £355k (22/23: £670k). 

The Trustees consider that the Fund has robust financial controls, and it is expected that the adjustment in grant giving to the ROH and BRB will ensure that the Fund’s reserves remain sustainable for the future. 

## **Investment Policy** 

The Trustees’ long term investment objectives are: 

- a) the creation of a sufficient investment return to enable the Fund to carry out its purposes effectively and without interruption; and 

- b) the maintenance of value and, if possible, the enhancement of the Fund’s investments. 

To achieve these objectives, the Trustees’ past and current policy is to invest in a mixture of index tracking equity funds, real return funds and short-term deposits. 

## **Investment Performance** 

Both the Investment Sub-Committee and the Trustees as a group regularly reviewed the Fund’s investments and asset allocation during the period. 

In view of the level of giving agreed during the period the Trustees consider the period end outturn to be acceptable. Total investments as at 31 March 2024 were £5.80 million (31/03/23: £6.19 million) and net investment gains during the period were £241k (22/23: £220k losses). Net disposals of assets to fund the programme of grants, which has been the Trustees’ policy both before and after the pandemic, totalled £661k 

The assets of the Fund continue to be invested in a mixture of BlackRock equity tracker funds, absolute return funds (the Newton Real Return Fund, CF Ruffer Absolute Return Fund and the Trojan Investment Income Fund) and cash. 

Following a review of the Common Reporting Standard (CRS), which came into effect on 1 January 2016, and consequent amendments made to arrangements with certain investment managers, the Trustees concluded that the Fund is not a Financial Institution under the terms of the CRS and that it is classified as an “Active Non-Financial Entity” with no further reporting requirements to HMRC. 

3 



## **THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

## **REPORT OF THE TRUSTEES** 

## **Financial Review of the Year** 

Total income from investment income and donations for the year was £155k (2023: £139k) which included donations and legacies of £40k. Total expenditure for the year was £468k (2023: £757k). This resulted in net expenditure before gains on investments of £312k (£2023: £618k). 

Gains on investments for the year were £241k (2023: Loss on investments of £220k) resulting in a decrease in funds of the year of £72k (2023: Decrease in funds of £837k). 

## **Reserves Policy** 

It is the policy of the Fund to maintain unrestricted funds in liquid investments sufficient to enable it to meet its charitable commitments and governance costs for the foreseeable future. The Trustees review the level of reserves on an ongoing basis. Any unspent income in a year is transferred to reserves for future contingencies. 

Unrestricted general funds at 31 March 2024 were £6,325k (2023: £6,396k). 

## **Going concern** 

After making appropriate enquiries, the Trustees have a reasonable expectation that the Fund has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. 

## **Plans for Future Years** 

The Fund would welcome a greater number of individuals applying for assistance and works closely with the ROH to identify and encourage applicants to approach the Fund for support. It also looks to extend its reach by forging closer links with people involved in other opera, ballet and music companies in line with its giving criteria and charitable objectives set out above. 

Support to organisations is expected to continue, with commitments already in place with ROH’s OHU, BRB, Dancers’ Career Development, Royal Ballet School, Sloane Square Choral Society and Chelsea Chamber Choir. A restructuring of the ROH’s Occupational Health Unit is expected to take place in 2024-25 and the Trustees expect a further application for support from the ROH once this has taken place. 

Operational efficiencies will be achieved through the implementation of a grant management system. 

The Trustees will continue to review the Fund’s activities and associated financial commitments following the creation of the Charitable Incorporated Organisation (CIO) on 1 April 2021. 

## **Post Balance Sheet Events** 

Since 31 March 2024, both UK and international stock markets have strengthened. The Trustees consider the level of reserves to be sufficient to meet its operational and grant funding requirements and are of the view that its status as a going concern is not adversely affected. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Structure** 

The Fund’s application to the Charity Commission to change its legal structure from a registered charity to a CIO was approved with effect from 1 April 2021. The Fund is now governed by a Deed of Constitution dated 22 September 2020. 

## **Governance** 

Responsibility for the management of the Fund is vested in the Trustees shown on page 1. The Trustees meet quarterly to, inter alia, assess requests for assistance, investment matters and financial performance. 

4 



## **THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

## **REPORT OF THE TRUSTEES** 

## **Governance (continued)** 

The Trustees who served during the year were as follows: 

- Mr Oliver Parr - Chairman 

- Mrs Tessa King-Farlow – Vice Chairman 

- Mr Alex Beard CBE 

- Mr Neil Dolby 

- Mr Greg Jauncey 

- Mr Andrew Kaufman MBE 

- Mr James Parry 

- Ms Eleanor Sepanski 

- Mrs Nicki Spencer 

The Trustees formed a Nominations Sub-Committee to assist the Chairman and the Trustees’ Board in appointing new Trustees and a Sub-Committee on grants to registered charities on 5 May 2015 and 17 April 2015, respectively. In addition, the Investment Sub-Committee continues to meet on a regular basis. 

New Trustees are nominated and appointed by the existing Trustees. The Constitution provides for a minimum of three Trustees and a maximum of ten. Trustees are selected in order to ensure that there is a balance of experience, including knowledge of the ROH, investment, legal and financial matters. Following the appointment of a new Trustee, the Officers ensure that he or she is made aware of the duties and responsibilities of a Trustee as set out by the Charity Commission. They are also provided with a copy of the Constitution and the latest set of accounts. 

## **Management** 

The Trustees are responsible for setting strategies and policies and for ensuring that these are implemented by the Officers of the Fund. The Trustees take professional advice, when necessary, generally on legal matters. 

Applications for help are reviewed against specific criteria, and, generally, each individual applicant has to submit a statement of income and expenditure. These criteria are based on Minimum Income Standards guidelines, published statistics (e.g. The Family Budget Unit) and the need to meet the objectives of the Fund. Help may be given by way of one or more grants, a monthly allowance (subject to regular review) or a loan. Applications for help from other charities within the Fund’s objectives are also considered. 

The Fund is a member of the Association of Charitable Organisations (ACO). The ACO provides much helpful information on good practice and changes in the law affecting charities and acts as an authoritative lobby on behalf of charitable foundations with the Government and regulators. 

## **Risk Management** 

The Trustees examine the major strategic, business and operational risks which the Fund faces each year and confirm that formal systems have been established to enable regular reports to be produced so that the necessary steps can be taken to mitigate these risks: 

The major risks identified and the ways to mitigate them include the following: 

- Lack of funds to meet the Fund’s commitments - Overseen by the Investment Sub-Committee with regular reviews. The Fund maintains two bank accounts. Cash flow projections are reviewed quarterly. If required, cash can be raised from the investment portfolio. 

- Payment of funds to people who are not eligible beneficiaries - Overseen by the staff. Adherence to the Grant Authorisation Protocol as agreed by the Trustees. 

- Misappropriation of funds - Strict procedures for approval of investments and signing of cheques, and dual authorisation of online payments. 

- Unavailability of staff: - The Fund has a small team of two who cover each other with assistance from the ROH Occupational Health Advisor when required. A Procedures Manual and Guidelines folder is available. 

5 



## **THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

## **REPORT OF THE TRUSTEES** 

## **Risk Management (continued)** 

Strategies are in place to manage and mitigate these risks and ensure that they do not adversely affect the Fund’s operations or the welfare of its beneficiaries. 

Through the above risk management process, the Trustees anticipate that major risks will be identified and, as far as practicable, adequately mitigated. It is recognised that systems can only provide reasonable, but not absolute, assurance that major risks have been adequately managed. 

## **Public Benefit** 

The Trustees have referred to the Charity Commission’s general guidance on public benefit when reviewing the Fund’s aims and objectives and in planning the Fund’s future activities. In particular, the Trustees have considered how planned activities will contribute to the aims and objectives that have been set. The Trustees are satisfied that the Fund continues to meet the Charity Commission’s guidelines with regard to delivering public benefit. 

## **TRUSTEES’ RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS** 

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year. In preparing these financial statements, the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP 2015 (FRS 102); 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Deed of Constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

## **Disclosure of information to the auditor** 

In so far as the Trustees are aware: 

- there is no relevant audit information of which the charity’s auditor is unaware; and 

- the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

This report was approved by the Trustees on 6 November 2024 and signed on their behalf by: 

**Oliver Parr** Chairman 

6 



## **THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES** 

## **Opinion** 

We have audited the financial statements of The Royal Opera House Benevolent Fund (the ‘charity’) for the year ended 31 March 2024 which comprise the Statement of Financial Activities, Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

## In our opinion, the financial statements: 

- give a true and fair view of the state of the charity’s affairs as at 31 March 2024 and of its incoming resources and application of resources, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the Trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast doubt on the charity's ability to continue as a going concern for a year of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon **[4]** . Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements 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. 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: 

- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records; or 

- we have not received all the information and explanations we require for our audit. 

7 



## **THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES** 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 

## **Extent to which the audit was considered capable of detecting irregularities, including fraud** 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud. 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed 

procedures which included: 

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

- Reviewing minutes of meetings of those charged with governance; 

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection; 

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; 

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

## **Other matters** 

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn. This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice. 

8 



**INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES** 

## **THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

## **Use of our report** 

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. 

**Michelle Wilkes** (Senior Statutory Auditor) for and on behalf of Azets Audit Services River House 1 Maidstone Road Sidcup Kent DA14 5RH 

Date: 29 November 2024 

9 



## **THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024** 

|||**2024**|**2023**|
|---|---|---|---|
||**Notes**|**£**|**£**|
|**Income from:**||||
|Donations and legacies|**2**|40,332|35,252|
|Grants receivable|**3**|15,000|15,000|
|Investment income|**4**|100,038|89,083|
|Other income||-|67|
|**Total income**||155,370|139,402|
|**Expenditure on:**||||
|Charitable activities||||
|Benevolent grants payable|**6**|307,938|553,150|
|Counselling|**8**|5,665|5,496|
|Occupational Health Unit|**9**|84,286|136,794|
|Welfare Support costs|**10**|69,937|61,758|
|**Total expenditure**|**5**|467,826|757,198|
|**Net income / (expenditure) and net movement in**<br>**funds before gains and losses on investments**||312,456)|(617,796)|
|Net gains / (losses) on investment assets|**15**|240,882|(219,635)|
|**Net movement in funds**||(71,574)|(837,431)|
|**Reconciliation of funds**||||
|Total funds brought forward||6,396,365|7,233,796|
|**Total funds carried forward**||6,324,791|6,396,365|



All transactions are derived from continuing activities and from unrestricted income. 

The statement of financial activities includes all gains and losses recognised during the year. 

10 



## **THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

## **BALANCE SHEET AS AT 31 MARCH 2024** 

|**Notes**<br>**Fixed assets**<br>Tangible Fixed Assets<br>**14**<br>Investments<br>**15**<br>**Current assets**<br>Debtors<br>**16**<br>Current asset investments – Fixed<br>deposit account<br>Cash at bank and in hand<br>**Creditors:**Amounts falling<br>due within one year<br>**17**<br>**Net current assets**<br>**Net assets**<br>**FUNDS**<br>Unrestricted general funds|**2024**<br>**£**<br>39,195<br>350,000<br>169,968<br>559,163<br>(37,858)|**£**<br>-<br>5,803,486<br>521,305<br>6,324,791<br>6,324,791<br>6,324,791|**2 23**<br>**£**<br>41,188<br>100,000<br>70,774<br>211,962<br>(9,727)|**£**<br>-<br>6,194,130|
|---|---|---|---|---|
|||||202,235<br>6,396,365<br>6,396,365<br>6,396,365|



The financial statements were approved on 6 November 2024 and signed on behalf of the Board by: 

**Oliver Parr** Chairman 

**Tessa King-Farlow** Vice-Chairman 

11 



**THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **1. ACCOUNTING POLICIES** 

## **1.1 Basis of preparation** 

The Royal Opera House Benevolent Fund is a registered charitable incorporated organisation (CIO) constituted under a Deed of constitution dated 22 September 2020. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the Funds’s operations and principal activities is set out on page 2. 

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice. 

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity. 

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. 

## **1.2 Income** 

All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. 

For donations and legacies to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled. 

The charity receives grants in respect of its activities. Income from grants is recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred. 

Investment income is earned through holding assets for investment purposes such as deposits or units in investment funds. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established. 

## **1.3 Expenditure** 

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings: 

- Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. 

- Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching to the grants are fulfilled. Grants offered subject to conditions that have not been met at the year-end are noted as a commitment, but not accrued as expenditure. 

12 



**THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **1.4 Support costs allocation** 

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at the Principal Office. Where support costs cannot be directly attributed to particular headings they have been allocated to expenditure on charitable activities on a basis consistent with use of the resources. 

The analysis of these costs is included in note 11. 

## **1.5 Funds** 

Unrestricted funds (which have not been designated for other purposes) are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. 

## **1.6 Investments** 

Investments are recognised initially at their transaction value which is normally the transaction price less transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA if the investments are publicly traded or their fair value can otherwise be measured reliably. 

## **1.7 Foreign currency** 

Investments denominated in a foreign currency at the balance sheet date are translated using the closing rate on that day. 

## **1.8 Debtors and creditors receivable / payable within one year** 

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. 

## **1.9 Loans** 

Loans are initially recognised at face value including transaction costs. Subsequently, they are measured at amortised cost, less impairment. If an arrangement constitutes a finance transaction it is measured at present value. 

## **1.10 Tangible Fixed Assets** 

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Assets costing less than £500 are written off in the year of acquisition. All other assets are capitalised. 

## **1.11 Depreciation** 

Depreciation is provided on a straight line basis on the cost of tangible fixed assets, to write them down to their estimated residual values over their expected useful lives. Assets are depreciated over 4 years commencing the year after acquisition. 

## **1.12 Pension costs** 

Contributions to staff stakeholder pension schemes are charged to the statement of financial activities for the year in which they are payable. 

13 



**THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **1.13 Going Concern** 

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient, with the level of reserves, for the charity to be able to continue as a going concern. 

## **1.14 Judgements and key sources of estimation uncertainty** 

Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements: 

## _Useful economic lives of tangible assets_ 

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of the equipment, and note 1.11 for the useful economic lives for each class of assets. 

There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. 

|**2.**<br>**DONATIONS AND LEGACIES**<br>Donations<br>Legacies<br>**3.**<br>**GRANTS RECEIVABLE**<br>Acting for Others<br>**4.**<br>**INVESTMENT INCOME**<br>Dividends receivable from investments and interest receivable from fixed<br>interest securities and deposits with investment managers<br>Interest receivable|**2024**<br>**£**<br>250<br>40,082<br>40,332<br>**2024**<br>**£**<br>15,000<br>15,000<br>**2024**<br>**£**<br>89,734<br>10,304<br>100,038|**2023**<br>**£**<br>1,252<br>34,000|
|---|---|---|
|||35,252|
|||**2023**<br>**£**<br>15,000|
|||15,000|
|||**2023**<br>**£**<br>88,518<br>565|
|||89,083|



14 



**THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

|**5.**<br>**ANALYSIS OF EXPENDITURE**<br>Charitable activities<br>Benevolent grants payable<br>Counselling<br>Occupational Health Unit<br>Welfare costs|**Staff**<br>**Direct**<br>**costs**<br>**costs**<br>**£**<br>**£**<br>3,018<br>288,123<br>55<br>5,304<br>826<br>78,865<br>64,549<br>1,559<br>68,448<br>373,851|**Support**<br>**costs**<br>**£**<br>16,797<br>306<br>4,595<br>3,829<br>25,527|**Total**<br>**2024**<br>**£**<br>307,938<br>5,665<br>84,286<br>69,937<br>467,826|**Total**<br>**2023**<br>**£**<br>553,150<br>5,496<br>136,794<br>61,758<br>757,198|
|---|---|---|---|---|



Support costs have all been allocated against charitable activities in line with direct costs. 

|**6.**<br>**BENEVOLENT GRANTS PAYABLE**<br>**Number of**<br>**Recipients**<br>Allowances for beneficiaries in financial need<br>12<br>Other benevolent grants – Individuals<br>33<br>Other benevolent grants – Covid-19 support<br>-<br>Emergency energy grants<br>-<br>Benevolent grants to Organisations (Note 7)<br>Allocated staff costs (note 12)<br>Allocated support costs (note 11)<br>**7.**<br>**BENEVOLENT GRANTS TO ORGANISATIONS**<br>Dancers’ Career Development<br>Birmingham Royal Ballet<br>Chelsea Chamber Choir<br>Ex Cathedra<br>Royal Ballet School<br>Sloane Square Choral Society<br>The Royal Opera House<br>**8.**<br>**COUNSELLING**<br>Counselling (Employee Assistance Programmes)<br>Allocated staff costs (note 12)<br>Allocated support costs (note 11)|**2024**<br>**£**<br>85,585<br>54,240<br>-<br>-<br>148,298<br>3,142<br>16,797<br>307,938<br>**2024**<br>**£**<br>49,650<br>61,398<br>2,000<br>6,500<br>25,000<br>3,750<br>-<br>148,298<br>**2024**<br>**£**<br>5,304<br>60<br>306<br>5,665|**2023**<br>**£**<br>67,800<br>25,590<br>84,700<br>19,625<br>335,398<br>3,060<br>16,977<br>553,150<br>**2023**<br>**£**<br>49,650<br>120,798<br>-<br>5,500<br>25,000<br>3,750<br>130,700<br>335,398<br>**2023**<br>**£**<br>5,304<br>29<br>163<br>5,496|
|---|---|---|



15 



**THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

|**9.**<br>**OCCUPATIONAL HEALTH UNIT**<br>OHU practitioner costs<br>Allocated staff costs (note 12)<br>Allocated support costs (note 11)<br>**10.**<br>**WELFARE SUPPORT COSTS**<br>Welfare expenses<br>Allocated staff costs (note 12)<br>Allocated support costs (note 11)<br>**11.**<br>**SUPPORT COSTS**<br>Other expenses<br>Accountancy fees<br>Database costs<br>Governance costs:<br>Auditors’ remuneration<br>Legal fees<br>**12.**<br>**STAFF COSTS**<br>Wages and salaries<br>Social Security costs<br>Pension costs<br>Redundancy costs|**2024**<br>**£**<br>78,865<br>826<br>4,595<br>84,286<br>**2024**<br>**£**<br>1,559<br>64,549<br>3,829<br>69,937<br>**2024**<br>**£**<br>1,384<br>9,773<br>5,370<br>9,000<br>-<br>25,527<br>**2024**<br>**£**<br>56,865<br>5,279<br>2,152<br>4,152<br>68,448|**2023**<br>**£**<br>131,894<br>748<br>4,152<br>136,794<br>**2023**<br>**£**<br>1,041<br>58,816<br>1,901<br>61,758<br>**2023**<br>**£**<br>3,533<br>9,079<br>-<br>6,222<br>5,400<br>24,234<br>**2023**<br>**£**<br>55,194<br>5,235<br>2,224<br>-<br>62,653|
|---|---|---|



3 members of staff (head count) (2023 – 3) were employed during the year. 

No employees earned over £60,000 per annum. 

The total amount of employee remuneration received by key management personnel is £68,448 (2023 - £62,653). The fund considers its key management personnel to comprise those individuals listed on page 1. 

## **13. TRUSTEES’ REMUNERATION** 

None of the Trustees received any remuneration or reimbursed expenses during the year. 

16 



**THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **14. TANGIBLE FIXED ASSETS** 

|**15.**|**INVESTMENTS**<br>**2024**<br>**£**<br>Market value at 1 April 2023<br>6,194,130<br>Additions<br>29,360<br>Disposals<br>(660,886)<br>Investment gains / (losses)<br>240,882<br>Market value at 31 March 2024<br>5,803,486<br>Historical cost at 31 March 2024<br>4,170,460<br>Market value of investments comprise:<br>UK listed investments<br>4,292,417<br>Overseas listed investments.<br>1,511,069<br>5,803,486<br>**Equ**<br>**OHU**<br>**ipment**<br>**Office**<br>**Equipment**<br>**£**<br>**£**<br>**Cost**<br>At 1 April 2023 and 31 March 2024<br>7,852<br>139<br>**Depreciation**<br>At 1 April 2023 and 31 March 2024<br>7,852<br>139<br>**Net Book Value**<br>At 31 March 2023 and 31 March 2024<br>-<br>-|**2023**<br>**£**<br>7,032,885<br>28,509<br>(647,629)<br>(219,635)<br>**Total**<br>**£**<br>7,991<br>7,991<br>-|
|---|---|---|
|||6,194,130|
|||4,754,748|
|||4,893,841<br>1,300,289|
|||6,194,130|



|The following each represent more than 5% of the total market value of investments:|The following each represent more than 5% of the total market value of investments:||
|---|---|---|
||**2024**|**2023**|
||**£**|**£**|
|BlackRock Charities UK Equity Index Fund|628,206|601,637|
|BlackRock Emerging Markets Index Fund Institutional|-|219,796|
|BlackRock Europe EX-UK Index Fund Flexible Distributing Class|356,307|323,721|
|BlackRock North America Index Fund Flexible Distributing Class|1,154,761|976,568|
|CF Ruffer Absolute Return C Acc|1,483,728|1,584,530|
|Newton Real Return Exempt Fund (Inc)|932,732|1,267,716|
|Trojan Investment Fund S Income|1,247,752|1,220,162|



17 



**THE ROYAL OPERA HOUSE BENEVOLENT FUND** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **16. DEBTORS** 

|**DEBTORS**|||
|---|---|---|
|Loans to beneficiaries<br>Prepayments and accrued income<br>The Royal Opera House Covent Garden Limited|**2024**<br>**£**<br>21,833<br>17,362<br>-<br>39,195|**2023**<br>**£**<br>17,683<br>6,147<br>17,358|
|||41,188|



Loans to beneficiaries are repayable either at an agreed monthly rate, upon death, or when certain conditions are satisfied and are on an interest-free basis. 

## **17. CREDITORS:** Amounts falling due within one year 

|The Royal Opera House Covent Garden Limited<br>Accrued expenses|**2024**<br>**£**<br>27,348<br>10,510<br>37,858|**2023**<br>**£**<br>-<br>9,727<br>9,727|
|---|---|---|



## **18. RELATED PARTY TRANSACTIONS** 

During the year a £2,000 donation was made to Chelsea Chamber Choir (2023: £nil). Mrs Tessa KingFarlow (Trustee) is also a trustee of the charity. 

18