Royal Ballet School Annual report and financial statements for the year ended 31 August 2023 Charity registration number: 214364 Company registration number.. 547018 Principal and reglstered offlce.. 46 Floral Street. London WC2E 9DA Contents PRINCIPAL ADDRESSES . ADVISORS...................-...-........................................ ........................................ GOVERNORS. DIRECTORS AND CHARITY TRUSTEES. EXECUTIVE LEADERSHIPTEAM....................................................................................................... ....... INTRODUCTION FROM THE CHAIRMAN.. REPORT FROM THE ARTISTIC DIRECTOR & CEO.................. ...... ........................................................... AIMS AND OBJECtIVE5 OF CHARITY.... .10 CHARITABLE ACTIVITIES................................................. .11 ACADEMIC EDUCATION........................................................................................................................ 14 STLJDENT WELLBEINfj....-...........................-............................... 15 TRAINING AND ACCESS.................................................. 16 FUNDRAISING..................... -17 FINANCIAL REVIEW............................................................................................ .18 GOVERNANCE......................................................................,................................................................ 21 STATEMENT OF FINANCIAL ACTIVITIES.......................................... ..................................................... 29 BALANCE SHEET.................................... .30 STATEMENT OF CASH FLOWS............... .31 NOTES TO THE FINANCIALSTATEMENTS.-............................... ................................-........................... 32 Page 2 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS PRINCIPAL ADDRESSES UPPER SCHOOL (Years 12-141 The Royal Ballet School 46 Floral Street Covent Garden London WC2E 9DA WHITE LODGE Iyears 7-111 The Royal Ballet School White Lodge Richmond Park Richmond TWIO SHR ADVISORS AUDITORS: Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW BANKERS: Barclays Bank PIC Education Team Level 28, Churchill Place London E145HP SOLICITORS.. Veale Wasbrough Vizards Narrow Quay House Narrow Quav Bristol BSI 4QA Sheridans 76 Wardour Street London WIF OUR INSURANCE BROKER Circle Insurance 118 Holyhead Road Coventry CVI 3LY FINANCIAL ADVISORS Origin Financial Services Page 3 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS GOVERNORS, DIREcfoRS AND CHARITY TRUSTEES The Governor5 of Royal Ballet School Ithe School) are the School's Charity Trustee5 under charity law and the Directors of the Charitable Company. Detailed below are the Governors who 5eryed in office during the year and subsequentlv.. Christopher Rodrigue5 CBE Ichairman - resigned on 11 January 20241 Anna Birkett IDÈputy Chair until 11 January 2024 and interim Chairman from 12 January 2024) Suzi Brennan (Deputy Chairl Carlos Acosta C8E Justin Albert (resigned 19 July 20231 Delia Barker Mary Breen (appointed 20 June 20231 Tom Clementi Annie Davis (appointed 20 June 20231 Richard Dennen (appointed 16 November 20221 David Ebstein Janet Lambert Iresigned 11 October 20221 Menna McGregor Iresi8ned 20 June 20231 Kevin O'Hare CBE Craig Ranson Zita Saurel Ni5hi Somaiya Stephen Spurr Iresigned 20 June 20231 Kenneth Steele (resigned 11 October 20221 Susan Wijeratna Lady Sainsbury CBE 15 Governor Emerita of the School. COMPANY SECRETARY Pippa Adam50n Page 4 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS EXECUTIVE LEADERSHIP TEAM The ExecutNe Leadership Team are responsible for the day-to-day running of the School. They are.. ARTISTIC DIRECTOR & CHIEF EXECUTIVE OFFICER Christopher Powney ACADEMIC & PASTORAL PRINCIPAL David Gajadharsingh CHIEF OPERATING OFFICER Pippa Adamson COMMERCIAL DIRECTOR Carol Dray Pag& 5 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS INTRODUCTION FROM THE CHAIRMAN The Royal Ballet School exists to deliver excellence in dance through our graduating student5, their artistic and academic development, our teacher training, our outreach programmes and our student performances. In all respects we had a magnificent year thanks to the diligence and commitment of our students and staff. Our young dancer5 demonstrate their technical brilliance and remarkable artistry in performances throuEhout the year. They also demonstrate their hunger to grow and learn each day in class. Th95e of us who are ILJcky enough to witness this can attest that it IS Something special. The students are guided and supported by a team of devoted, passionate people who truly want the best for them. know how to nurture mind and body, and always go above and beyond. I want to congratulate Davld Gajadharsingh and his team for the outstanding ISI inspection result of November 2022. The Royal Ballet School was rated excellent against all three ISI criteria.. academic performance, artistic performance, and student care. This Is a tremendous achievement and a testament to our commitment to nurturing students fit for the stage and fit for today's world. I'm also delighted to see our digltal programmes go from strength to strength as we widen access across cultural, social and economic backgrounds. This yeèr, our online programme for primary school children, Primary Steps on Demand, and our innovative programme for recreational dance teachers, the Affiliate Training and Assessment Programme, were joined by Intensive Course5 on Demand, a suite of online classes and courses for dance studerbts to enjoy at home. For the very first time, this make5 the expert teaching, for which the School 15 known, available to all dance students worldwide. Nonetheless, the School currently faces considerable challenges. Our financial ambition is to break even in the core school each year, but as we battle an uncertain economic environment, high inflation, and a cost-of-living crisis, this is more difficult than ever. l am proud that admission to the School remains based solely on talent and potential, never flnancial means. Around 90% of the School's fLJII-time students each year receive bursary support to attend the School. As economic circumstances have impacted our student families and their ability to pay fee5, the costs of student bursaries have increased to a much greater level than ever before. Bursaries alone do not cover the cost of participating fully in school life. Many students require additional support. I want to thank those generous benefartors who donated to our newly launched Equal Opportunities Fund this year. It pays for items not covered by a student's grant or bursary and helps ensures all our students benefit from the full Royal Ballet School experience. As we move towards the School's centenary in 2026, in addition to addressing the School's financial challenges, we are reviewing the wider question of our role in shaping future generations of students. Our review must respond to the changing need5 of today'5 children and iheir familie5 and the ways in which these needs are beinB influenced by broader changes in society. We must strike the ri8ht balance between the demands of elite training and effective support for the whole child. We must resolve how to harness technology to extend our reach and we need to continue our work with the wider industry exploring common issues including inclusion and the place of classical ballet in our changlng world. Page 6 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS This challenging agen(la is essential if the School is to lead the way as a centre of excellence for lassical ballet in our second century. We are committed to doing what it takes. Our visionary founder, Dame Ninette de Valois. would expect no less of us. I warmly welcome our newest governors, Mary Breen, Annie Davis and Richard Dennen, who joined us this year. Thank you to outgoing governors Justin Albert, Janet Lambert, Menna McGreEOr, Stephen Spurr and Kenneth Steele. and to all our governors and staff for their valuable expertise and commitment. Finally, thank you to our Supporters, who make an immediate and tangible difference to the work of the School and the lives of its students, allowing us to transcend limitations and 5UStain the School into an even brighter futu￿. Chrlstoph¢r Rodrigues Page 7 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS REPORT FROM THE ARTISTIC DIRECTOR & CEO In 2022/23, we achieved the astonishing feat once more of 100% of graduating students securing a professional contract with a ballet company. This is an exceptional accomplishment for students whose training has been significantly impacted by a global pandemic. Six joined The Royal Ballet as Aud Jebsen Young Dancers, and four joined Birmingham Royal Ballet. 14 others joined prestlEiOUS companies across Europe, the United States and Canada. My congratulations to them all, I wish them every success and happine55 in their careers. Before they embarked on their next chapter, they completed their traSning with a storming Summer Performance season. Students from all years of the School performed 17 times acr055 five venues, including at the Next Generation Festival at the Royal Opera House's Linbury Theatre, Opera Holland Park, and triumphantly on the Royal Opera House main stage. What a joy and privilege it is for our students and team to work with a diverse range of artists, choreographers, and rehearsal directors for these performances each year. The School honoured its close connections with The Royal Ballet companies, from Carlos Acosta coaching students through his Vision Scene from Don Quixote to School 31umnLts Christopher Wheeldon staging his mesmerising Within the Golden Hour and works by both Kenneth Macmillan (The Fourseasons) and Frederick Ashton (The Two Pigeons). We celebrated accomplished alumni, performing Sechs Tonze by Jirl Kylian and a brand-new work created on our students by Mikaela Polleyi Fnsr Blue. Students also gave breathtaking accounts of works by Robert Battle, Tom Bosma, August Bournonville, and Goyo Montero. and new pieces by Mark Annear, Karen Berry, Donna Makins and Morgann Runacre- Temple. Elsewhere, our work to widen access to ballet education and create more opportunities for people to experience dance grew. In September 2022, we opened our first Primary Steps centre in Wales, inviting Year 3 students in six Cardiff partner schools to participate in weekly creative ballet workshops. We telebrated one year of Primary Steps on Demand, an on-demand programme that Uses the School's expertise to enable all primary school teachers to incorporate dance easily into their classrooms. We also held our first non-5elettive Intensive Courses in the UK, welcoming nearly 300 students to London, Manchester and Leeds for classes in classical ballet technique and developing artistry. We continued OLJr mission to empower all dance teachers to deliver exceptional training, using educational practice relevant and enrichin8 to today's child. We were thrilled that our first cohort of 29 trainee Affiliate teachers all succeeded in gaining full Affiliate status, bringing The Royal Ballet School'5 unique holistic teaching ethos to their private or recreational dance schools in the UK and overseas. Two more cohort5 have now commenced their training, takin8 this groundbreaking programme from strength to strength. As a world leader in classical ballet training, we've worked with experts across our industry to share best practices and develop what we do. We partnered with Podium Analytics and The Universlty of Essex to unlock further advance5 in performance science and reduce injury rate in young dancers. I accompanied students alld staff to Canada in May to represent the School at Assemblée Internationale 2023. Established by Canada's National Ballet School, the event brought together the ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS global ballet training community to find strategies to advance equity in our art form, specifically focusing on anti-Black racism. I'd like to thank three extraordinary members of the Artistlc staff, Zhan Atymtayev, Daria Klimentova and Kenta Kura, who left the School al the close of the 2022123 academic year after a collective 28 years of Royal Ballet School teaching, to pursue other excitin8 Opportunities. Thank you a5 ever to our entire staff team, who work tremendously hard to achieve the best outcomes for all our students and to achieve the School's objectives. My personal thanks to our Chair, Christopher Rodrigues, and our faithful Governors, collaborators, and partners. Finally, to our steadfast supporters, without whom none of this would be possible. Christopher Powney Page 9 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS AIMS AND OBJECTIVES OF CHARITY OUR VISION Our vision is to be the best classical ballet school in the world. OUR MISSION Our mission is to nurture, train and educate exceptional young dancers for the Royal Ballet companies and other leading UK and international companie5 and to inspire the future of classical ballet training. OUR VALUES I. STRIVING FOR EXCELLENCE The Royal Ballet School 15 always working towards excellence in everything we do. We bring the tmost integrity, Passion and dedication to our work, always. Through our constant drive to achieve the highest standards, we set the standard for others, enriching and inspiring our sector and defining its future. NURTURING INDIVIDUALS We believe in the unique potential of each individual. We nurture each human holistically, equipping them with the tools they need to shape their futures as healthy, resilient human beings. We are committed to equity and ensuring all individuals have what they need to reach their potential. We cultivate supportive, nouri5hin8 environments built on trust, respect, open communication and kindness. 3. ACTIVELY WIDENING ACCESS Ballet and creative dance education should be accessible to all. We work proactively to treate opportunities for people to engage with ballet wherever we can and to expand our reach across the U K and globally, including through digital access. It is particularly important to us to work to improve access routes to ballet in areas Wlth little access to arts education. 4. OUR HERITAGE NOURISHES OUR FUTURE We have a rich and unique heritage and we champion ballet excellence throughout the ages, respecting. preserving and honouring what has gone before, while also valuing our history as instructive, enablin8 US to acknowledge, learn and develop. Qur heritage is the foundation from which we sustain and evolve the School and reach outwards, impacting our sector and society as a whole. 5. ALWAYS INNOVATING We are a bold, forward-thinking organisation, dedicated to continuous evolution. We t8ke an innovative, pioneering outlook, committed to creative thinking to ensure we remain at the fO￿front of all we do. We act as thought leaders and contribute to setting the agenda for classical ballet globally. We actively seek to work with other individuals and organisations, sharing knowledge and building on our research collaboratively. Page 10 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS CHARITABLE ACTIVITIES As well as full-time trainingi The Royal Ballet School offer5 various programmes to engage with and train in classical ballet. The Artistic Director of The Royal Ballet School, The Royal Ballet and Birmingham Royal Ballet work closely together. The School benefits from the Artistic Directors of both companies being Governors of the School their commitment and input into the School a5 Governors and as industry advisors are invaluable. FULL TIME STUDENTTRAINING The School is located across two sites.. White Lodge in Richmond Park is a boarding school for 11 to 16.year-olds, and Upper School in Covent Garden trains students aged 16 to 19. Upper School students board at Aud Jebsen Hall in Pimlito and Jebsen House in Covent Garden. Training is split acr055 four programmes, each tailored to support the training needs of a specific cohort of students. Foundation Programme for Years 7-9; Development Progr3mme for Year5 10-11,. Vocational Programme for Years 12-13,. and Pre-professional Programme (Year 141. ASSOCIATE TRAINING The School provides dance training to young Associate students, introducing them to the School's System of Training. Many Associate Students go on to gain è full-time place at the School. Classes are run over weekends during term time, with additional workshops throu8hout the year. Junior Associate classes for ages 8 to 11 are run at nine centres across the United Kingdom,. Mid Associate classes for ages 11-14 are held in six centres acr05S the United Kingdom,. Senior Associate5 classes for ages 14 to 16 are held in London and Birmingham- and Advanced Associate classes for 16 to 18-year-olds are held in London. INSIGHT AND ACCESS OPPORTUNITIES The School invites young dancers aged between 8 and 15 years to attend special events around the country and online. Insight opportunities include experiencing a typical Associate lesson, learning what it Is like to audition for the School and giving primary and Secondary schools a behind-the- scenes look at classical ballet training. INTENSIVE COURSES AND MASTERCLASSES The Intensive Course and Masterclass Programme offers young people aged 10 to 20 the opportunity to experience Royal Ballet School training. Courses are held in the UK and overseas. Typically, intensive courses run from one to five weeks. UK intensive courses are held at White Lodge and Upper School and are a mix of non-residential and residential. Those attending residential courses in the UK can experience life at the School alongside training. Masterclasses are held on a single day and are opèn to any young person who wants to experience Royal Ballet School training. Pag& 11 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS PRIMARY STEPS The Primary Steps programme introduces prlmary school children to classical ballet through regular dance classes. Classes are delivered in person or through a hi8h-quality. on-demand platform. The programme gives thousands of children acce5S to ballet education, targeting areas of soclal, economic and cultural diversity. The in-person programme offers insight sessions for large groups of school children in five speclfic areas of the UK. These sessions are followed by a three-year, creative ballet training programme for selected children who would not otherwise have the opportunity. Primary Steps on Demand makes high-quality creative dance education from The Royal Ballet School available to all primary schools. The programme provides educators with everythin8 they need to integrate ballet education into their curriculum without any dance teaching experience. The programme is developed to be acce55ible to all, including those with special educational needs or physical disabilities. It uses inclusive language and content. DIPLOMA OF DANCE TEACHING The Royal Ballet School's Diploma of Dance Teaching is a two-year part-time course that trains professional dancers and teachers to teach classical ballet at a vocational and pre-professional level to a world-class standard. The course provides a sound foundation in technical and creative pproaches to teaching ballet to a broad range of students using the School's vocational vocabulary and methodology and drawing on the most recent relevant pedagogy. PROFESSIONAL DEVELOPMENT The Royal Ballet School offers a wide range of professional development opportunities to dance teachers in the UK and worldwide. Inspire seminars support the professional development of teachers from all backgrounds and levels of experience. Alon8side giving teachers a comprehensive understanding of the teaching of classical ballet technique, the seminars offer fresh, innovative idea5 to guide teachers in their approach. They are non-syllabus-based and grounded in good teaching practice. Enlighten webinars provide invaluable insight and information surrounding all aspects of dan teaching and learning anij are taught online by expert staff. The webinars draw on the School's heritage and knowledge as a world leader in dance training and education. AFFILIATE TRAINING AND ASSESSMENT PROGRAMME The Affiliate Training and Assessment Programme (ATAPI extends the School's System of Training to recreational dance teachers, driving the standard of recreational dance training and keeping pace with the changing needs of the art form. ATAP offers an alternative to the current model of examination study offered by recreational dance organisations. It is based on providing high-quality training rather than student examination. Affiliate Teachers are empowered with the responsibility for guiding and assessing their own students, learning and have autonomy in their approach, providing teachers Wlth ongoing professional development and greater creative and professlonal fulfilment. Page 12 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS EQUITY DIVERSITY AND INCLUSION The Royal Ballet School is committed to creating and nurturing a commtJt)ity where each student and staff member is valued equally. We are proud that admission to the School has, for many years, been based solely on talent and potential. The Royal Ballet School is committed to being accessible regardless of cultural, social and economic backgrounds. P8ge 13 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS ACADEMIC EDUCATION The Royal Ballet School is a non-selective school for academic education, and students arrive with differing e(lutational needs. The School believes students become better creative artists usln8 their brains and bodies. Academic work is of equal importance to artistic training. We are deli8hted that, once again, our students have performed well in their academlc examinatlOnS. BA (HONS}: CiASSICAL BALLET AND DANCE PERFORMANCE (Validated by The University of Roehamptonl Year 14 IPre-profe55ionall was the third cohort to complete the BA (Honsl degree. There were 15 entries, of which 13 were awarded 151 Class Honours, and the remaining two were cla55ed as Upper Second, 2.1. FOUNDATION DEGREE: CLASSICAL BALLET AND DANCE PERFORMANCE (Validated by The University of Roehamptonl The foundation degree is completed by our Year 13 5tudents12nd Yearl. We were delighted that 24 of our 25 candidates achieved a Distinction. The remaining candidate was awarded a Merit. EXTENDED PROJEcf QUALIFICATION (Ep￿ RESULTS As part of the academic enrichment programme at the Upper School, students may choose to studv a range of academic and vocational courses in addition to the degree. One of the options is the Extended Project Qualification. This is organised and supervised by the academic team. There were nine entries, of which one gained an A* four gained an A, and four two earned Cs. GCSE The assessment of GCSE examinations returned to pre-COVID norm5 Wlth a national picture of suppressed results. There were 182 exam entries, of which 96% received a Grade 4-9 with a lOO% pass rate. The value-added score wa5 0.47. Broadly, the value-add score measures how well the students have done, on average, against what their ability suggests that they might achieve against Students of similar ability nationally. For example, a positive result of 0.5 indicates that overall, the students scored, on average, 0.5 grades higher in each subject than other students of similar ability nationally. ADDITIONALACADEMIC STUDY We offer a range of online self-study courses, including A-Levels, GCSES and Quality Learning Scheme courses in our Academic enrichment programme at the Upper School. Page 14 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS STUDENT WELLBEING Excellent physical and mental healthcare is vital for students to achieve their potential as a dancer. The School is tommitted to caring for its students holistically so that they become healthyi resilient humans, able to succeed in whichever path they ch005e to pursue. The School is committed to the highest standards of training. This includes how teachers and students behave in and out of the studio. Each year, teachers and student5 commit to a set of behaviour expectations displayed around the School and in every studio. Visiting teachers, repetiteurs and choreographers receive a personalised induction into safeguarding and studio behaviours before they start work with our students. Our safeguardinE team work closely with The Royal Ballet and Birmingham Royal Ballet to ensure the highest standards of safeguardinE while our students work with the companies. Students tan access an online, anonymou5 reporting system to raise concerns over any pastoral or safeguarding issues. Staff have access to a reporting system to raise concerns about the welfare of any student in the School's care. All students are supplied with private medical cover. This ensures that students can atcess immediate specialist healthcare regardless of financial means. The School 15 proud of its commitment to mental wellbeing. Students can access in-house counsellors on both sites through referral or self-referral. The School Supports students in taking age-appropriate responsibility for monitoring their own well-being as part of their training. Daily wellness monitoring is done via an App which allow5 Students to log data, such as sleep quality and hydration quickly and simplv. The School is committed to creating a nurturing environment where all students feel welcome regardless of background. The School has a uniform and hair policy that embraces different student ethnicities. Hardship bursaries are available to students to ensure they can participate fully in school life. Bursaries provide students with discreet, needs-specific support tailored to their specific circumstances. In this academic year, all students were provided with ballet shoes free of charge. All students entering Year 7 are issued with a School iPad, providing equal access to technology. Music bursaries are available to students wishing to take singing lessons or learn an instrument. Funds are also provided for cultural trips and to see performances. Page 15 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS TRAINING AND ACCESS The Training and Access Team delNer a wide range of programmes outside the full-time student training. In 2022123.. we trained 605 Associate students,. 24 were offered a place to join the School for full time traininE from September 2023. 529 young people participated in an Insight Day: 1,762 partlcipant5 joined an Intensive Course or masterclass: 213 students took part in the Audition Insight Day in 2022 either in-person or on-line,. 277 teachers joined an Inspire seminar or Enlighten webinar; We enrolled and trained 35 teachers in the new Affiliate Teacher Training Programme,. 46 teacher5 achieved affiliate status for ATAP from the 2021122 and 2022123 cohorts; 1,818 primary School students were offered a creative dance workshop as part of the Primary Steps Programme,- and Of the Year 6 students who completed three years training through Primary Steps, 10 have kept dancing on a regular basis. Page 16 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS FUNDRAISING Fundraising is an essential part of the School finances without which we could not offer support, training and performance opportunities to so many students and young people. Total donations were £11,486,OCN)12022.. £3,245,0001 which included £1,131,000 of government grants12022.. £1,131,0001 and £7,500,000 to support the development of the White Lodge estate. Thi5 year, our generous donors funded.. Student support Intensive courses and mastertlasses £1,677,(KJO £66,267 Perfomiance and artistic programme Primary Steps Programme The Healthy Dancer Programme The development of the School's digital programme One-off projects £331,000 £438,000 £575,000 £30,000 £49,330 General support for the School £982,￿0 Direct expenditure on fundraising Is kept to a minimum. Non-staff costs were £40,51812022'. £15,OCKII increasing to £260,00012022.' £178,000) with staff costs included. This amount5 to 2.6% of donated income. Last year, the School invested in additional fundraising resources and restored the number of donor events to pre-COVID levels. The School'5 Development Team carries Out all fundraising wlth support from members of the Development Committee and Governors. The school does not engage with any external third-party fundraisers. Governors receive regular updates on fundraising regulations and guidance from the Head of Development and the Development Committee. The School abides by the appropriate code of conduct for all its fundraising, considering the issues raised in the Etherington Review into Charity Fundraising Practice issued in September 2015, which emphasised donor experience. The School take5 Its responsibility to anyone who might be vulnerable very seriously and will continue to consider this in the Charity's approach to fundraising activity. The SchoDI does not engage in any cold-calling or put pressure on an individual to donate funds, property or other assets. There have been no complaints in the period regarding inappropriate or intrusive contact. Pag817 ROYAL BALLETSCHOOL ANNUAL REPORT OF THE GOVERNORS FINANCIAL REVIEW Each year, the School's financial objective is to break even across the total of its activities. However, It has been increasingly difficult to meet this objective as high inflationary pressures bite. The School's core cost5, above those of staff are catering and premises. This were particularly affected by inflation in the year impacting the financial outturn. A one-off donation of £7,500,OCN) towards the development of the White Lodge estate, masks the underlying outturn of a £1,921,0 deficit. In the day to day operations before transfers, some depreciation and pension revaluation, the charity delivered a £999,(X)O loss. This includes £982.000 of donation support. INCOME The School only makes offers of full-time training to those who have the potential to become excellent dancers, so our ability to fill places depends on the calibre of applicants. In the year the School exceeded its target to have 220 students in the School. After three years of reduted activity, the School returned to normal operations post-COVID. A full range of acce55 and training opportunities were provided alongside full-time training and the Associate programme. Income from charitable activities rose to £9,556,00012022: £9,229,000). Unrestricted income of £10,737,0001£2022'. £10,378,000) was supplemented by restricted income of £10,504,00012022.. £1,796.0001 totalling £21,241,00012022'. £12,534,(K)01. Restricted income was enhanced by £7,500,000 toward5 the redevelopment of Whlte Lodge. EXPENDITURE During the year, expenditure was closely monitored and well controlled. The School's main costs relate to staffing, premises and food and these are generally fixed in nature. Specific programme costs or donor-funded activities vary annually and typically, have matching income streams. Total expenditure for the year was £16,161,00012022.. £14,279,0001; the increase was due to the reintrodurtion of a full programme of activities in the year, the high inflationary environment and some essential maintenance and repairs to premises. The costs of bursaries increased by £349,000 as more families required support and to a greater level than before. The Music and Dance Scheme Supports eligible students with the costs of fee5. but post-Brexit, European students no longer qualify for UK government support and donor support 15 required. Each year, circa 90% of the School's full-time students require bursary support to attend the School, and without this, the School would be unable to fill the available places. Hardship and Equity Support was provided to all families with the costs of ballet shoes. Further support was provided to selected families whose needs were greater. The total costs of raising funds remained low at £710.00012022.' £520,0001 which amounted to 3.4% of donated income. This figure includes expenditure on fundraising and all marketing and communications activity. The increase in costs relates to the investment in additional staff. PENSION PROVISION Although the defined benefit pension scheme is now closed for future accrual, it remains a significant risk for the School, particularly as the gcheme reaches the end of Its life circa 2034. The triennial valuation continues to be used to calculate any repayment5 required, and these Page 18 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS payment5 are incorporated into the longer-term financial planning of the School so that these commitments can be met as they fall due in the future. A designated fund of £450,000 has been set aside to meet the cash commitments of purchasing member annuities. PLANS FOR FUTURE PERIODS The School's most immediate need is to ensure its financial sustainability through the nexi few years. The School's business model that relies on Government investment in a period of high inflation, pressure on government spending and uncertainty around changes in legislation to VAT on school fees and business rates relief. Alongside the financial discussions sit wider questions of finding the right balance between elite training requirements and effective support for the whole child,. supporting young people who do not make it through the School- the environmenlal, social and governance agenda,. the place of ballet today and in the future,. The Board of Governors and the School Executive are active in it5 consideration of these issues and continue to develop strategies to address them. Committees are focused on specific areas to addre5S. Alon8slde strategic planning, in 2023124, the School will= embed changes to the assessment and reporting for students,. will implement recommendations to enhance the healthcare provision,. will continue to work with UK and International schools on industry issues such as diver51ty, body form and gender,. and continue to embed tethnology into art15tic training, academic teaching and student administration. FUNDS AND RESERVES POLICY The School's unrestricted general reserves at the year-end amount to £2,826,00012022: £4,054,000). Amounts designated for depreciation on property assets, maintenance and pension funds total £33,775,00012022.. £34,791,000). Adding in restricted funds of £9,997,00012022: £2,690,000) bring total ￿SerVeS to £46,598,00012022.. £41,535,000). The unrestricted general fund is held to provide financial stability to the School while making sure that funds are used to achieve the School's aims wherever possible. The general fund allows the School to meet its financial obligations and operate its business while managing ri5k5 and fundlng future work and development. The level of the unrestricted funds, le55 those set aside for depreciation and the pension deficit under the m05t recent triennial valuation at the year-end, is £3,268,000, equivalent to 3.0 months average unrestricted operating costs. At this time, the Governors, having assessed the financial stability of the School believe the level of reserves to be adequate. However, in the longer term, the focus will be to build reseNes for six months. Governors have reviewed the resetves policy in line with Charity Commission CC19 Guidance. Given Page 19 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS the uncertainty around funding and the economic environment, the School considers it necessary to hold reserves of a level equivalent to three to six months of operating costs. The unrestricted designated fund has been put aside by Governors and represents the funds that are invested in property and other fixed assets for the use of the School and are therefore not available for other purposes. A further unrestricted designated fund is Set aside for the Clerical Medical pension fund deficit. The fund will be used to monage expected cash flows for purchases member annuities over the remaining life of the scheme. The designated fund of £500,000 for the White Lodge Building Maintenance Fund, will be used to redevelop the White Lodge site. Restricted funds are the balance of unspent funds received subject to specific tonditions imposed by the donors and are held separately to be spent In future periods. PRINCIPAL RISK5 AND UNCERTAINTIES The Governors are responsible for managing the risks the School face5. The Board reviews the risk register and major risks regularly. The major risks identified include the followin8- managing the School in an uncertain economic environment with high inflation and the cost of living crisis. Specifically, the impact on student families and their ability to pay fees as well as attractin8 Staff to live and work in London: reduced leve15 of funding from the DfE in the face of stretched public finances: potential changes to VAT legislation, chargin8 VAT on school fee5; and managing safeguarding to ensure that students and staff understand how to identify risk and how and when to raise a concern, and are confident to come forward. It is recognised that systems can only provide reasonable, but not absolute, assurance that significant risks have been adequately managed. GOING CONCERN Governors are acutely aware of the pressures on public funding, the current Cost of living crisis and the high inflationary environment. The School'5 Development Team continues raisinE additional funds for the School and students to provide much-needed support. Equally, the Governors have invested in new commercial programmes to maximise the School's Trainin8 and Access programme while generating new revenue streams. Governors re8ularly review the School's management accounts, cash p051tion and fi've-year forecast. The Governors have reviewed the current position carefully to ensure the ongoinE provision of schooling for the pupils and the employment of staff. There are currently significant cash balances should additional liquidity be required through this period of uncertainty. Accordingly, the Governors believe the School's financial resource5 are suffitient to ensure the School will continue as a going concern for the foreseeable future, being ?t least 12 months from the date of approval of the financial statements and have therefore prepared the financial statements on a going concern basis. Page 20 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS GOVERNANCE The Royal Ballet School Ithe 5chooll is a charitable company limited by guarantee Iregistered number 5470181 and does not have a share capital. It is also a registered charity (number 2143641. The School was established in 1955 under a Memorandum of Association, which set5 Out the objects and powers of the Charitable Company and is governed by its Articles of Association. The School's objects and principal activity is to train and educate full-time students for a career as cla55ical ballet dancer5. The School has a wholly owned trading subsidiary, TRBS Enterprises Limited, which Sells branded merchandise, offers on-demand training and hire5 Out School premises, gifting it5 profits to the School. Consolidated accounts have not been prepared as the subsidiary'5 activities are immaterial, but the trading results are shown in Note 5 of the financial statements. The Royal Ballet School Endowment Fund is a connected charity whose purpose is to provide funding and facilities for the students at The Royal Ballet School. The connected charity is a separate charity with trustees responsible for that charity and their financial statements, which are not reported on in these account5. The School is the official School of both The Royal Ballet and Birmingham Royal Ballet companies. As a result, it has close working relationships with both Artistic Directors and their staff. The Artistic Directors of each Company are Governors of the School. HOW WE ARE GOVERNED The School is governed by the Board of Governors, whose members are also directors of the Charitable CDmpany and charity trustees. Governors hold office for an initial three-year term and may be re-eletted for a further two three-year terms. On occasion and for the benefit of the Charity, Governors may be invited to remain on the Board for a further one-year term. The Board is responsible for overseeing the strategy and policies of the School and meets formally at least three times a year. as well as holding other meetings for 5trate8ic planning discussions as required to perform its duties. The Board of Governors during the financial year and to the date of this report are shown on page 4. The Board has established eight standing Committees which meet regularly throughout the year and report to the Board of Governors. Each Committee is chaired by a Governor and supported by a Executive Leadership Team member. Between them, these committees have a responsibility to the Board for all the major areas of accountability. Committee Focuslouttomes Academic Core school teaching and learning standards enabling every student to fulfil their potential EnsurinE Sustainable finances, robust financial management, efficient operations and the identification and mitigation of risk Finance, Audit, Operations and Risk Development Fundraising to support the School's development, in line with philanthropic standards Page 21 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS Estates Buildings and estates fit for the School's current and future needs Artistic World-class artistic standard5 student and Staff Welfare Physical and mental well-being of all students and staff (including safeguarding) Governance Long-term organisational sustainability, including Equity, diversity and inclusion, sustainability, nominations, HR, remuneration and succession planning The Student and Staff Welfare Committee is responsible for formal student safeguarding and has a remit to look after the interests of teachers and other staff. However, safeguarding 15 reported on and reviewed at every Board Meeting and remains everyone's responsibility throughout the organisation. The Governors and Executive Officers make nominations for new Board members to the Governance Committee, who then make recommendations to the Board who elert new members. Candidates are selected based on their professional skills, knowledge. competence and experience, and Governors ensure an appropriate balance of relevant skills and expertise acros5 the Board. There 15 a regular review of the Board's composition, considering the need for succession planning as existing Governors retire. Professional recruitment agencie5 may be used where approprlate to ensure that the broadest range of candidate5 is considered. GOVERNOR TRAINING All Governors are inducted into the governance and operations of the School through briefings wlth the Chairman and members of the Executlve Leadership Team. All Governors are trained to Level 2 in Child Protection and Safeguarding, and at least two Governors to Level 3. Governors are issued with a copy of the AGBIS Guidelines for Governors laying out best practice in the Eovernance of independent schools. The training needs of Governors are reviewed from time to time, and support is provided as necessary. Additionally, regular presentations and reports are made to the Governing body on critical issues of current and ongoing importance. The Trustee5 adhere to the Charity Governance Code published in 2017, which sets out the principles and recommended practices for good governance within the sector. ORGANISATIONAL MANAGEMENT The School's day-to-day operations are managed by the Executive Leadership Team which comprises the Artlstic Director, Chief Operating Officer, Academic and Pastoral Principal and Commercial Director. The Executive Leadership Team are supported by the wider Senior Leadership Team. EMPLOYMENT POLICY To promote an environment in which the School can call upon the broadest POS5ible range of knowledge, skill and experience, as well as ensure compliance with the relevant leglslation and codes of practice, the Royal Ballet School is committed to achieving and maintaining a workforce which represents the population within its recruitment area. The School has an equality poliry to ensure fairness and equality of opportunity to all staff regardless of their status re8arding age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, Page 22 ROYAL BALLETSCHOOL ANNUAL REPORT OF THE GOVERNORS religion or belief, sex or sexual orientation. The School regularly reviews its recruitment, promotion, training and development policles to ensure that every appllcant for employment or member of staff is protected and given equal opportunity. PUBLIC BENEFIT The School remains committed to the aim of providing public benefit in accordance with its founding principles. The Governors have given due consideration to the Charity Commission's published guidance on the Public 8eneflt requirement under the Charities Act 2011. The School makes a significant contribution to the country's global reputation for arts and culture, specialising in classical ballet. A place at the School is open to any young person who possesses the potential and talent to become a professional cla55ical ballet dancer, irrespective of their social or financial background. A combination of public, private and charitable funding is available to give financial sUPPOrt and bursaries to students, and each year, about 85% of our students receive such 5UPPOrt. Each year, the School can offer up to 184 bursaries to qualifying students via the Department for Education's Music and Dance Scheme. The School's Tralning and Access department provides national Associate programmes that offer young people regular access to classical ballet training classes and workshops. There are nine Associate centres across the United Kingdom: London, Birmingham, Bath, Manchester, Leeds, Totnes, Eastlei8h, Newcastle and Dundee. All students are selected based on their potential as a classical ballet dancer rather than their ability to pay, and means-tested financial support is available irrespective of age or nationality. Donor-5UPPOrted travel bursaries are made available to Associate student5 to support them with the costs of attending classes and valuable acce55 to live performances at the Royal Opera House and other venues. The Intensive Courses department delivers courses throughout the year, allowing classlcal ballet student5 to experience Royal Ballet Sthool training. Annual course5 are held at The Royal Ballet School and internationally. Courses are open to British and international students aged 10 to 20. Again, all students are selected based on their ability rather than financial means, and means-tested bursary support is available for all intensive courses. Alongside studio-based classes, the school provides an online programme. Students from all over the world can access these classes, which cover a wide range of content for various abilities. The School also runs a national community access programme called Primary Steps. Funded by the DfE, Primary Steps partners with state schools to offer a complete dance programme for KS2. There are five school centre5 for the programme around the country-. Blackpool, Bury St Edmonds, Dagenham, 5windon and Mansfield. In 2022, the School made the Primary Steps programme available to all primary schools via its online platform at a cost of £3 per student per year. Other access opportunities are avallable, such as demonstrations for state school students studying GSCE dance or various Insight events for the general public. A programme of professional development is available for teachers of classical ballet. STATEMENT AS TO DISCLOSURE OF INFORMATION TO THE AUDITOR So far as each of the Governors is aware, there is no relevant audit information of whlch the tharitable company's auditor is unaware. Each Governor has taken all the steps they should have taken as a Governor to make themselves aware of any relevant audit information and establlsh that the tharitable company's auditor is aware of that information. Pgge 23 ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES The Governors (who a￿ also directors for the purposes of company lawl are responsible for preparing the Governors, annual report arbd financial statements in accordance with applicable law and the United Kingdom Generally Accepted Accouniing Practice (United Kingdom Accounting Standards). Company law requires the Governors to prepare financial statements for each financial year. Under company law, the Governors must only approve the financial statements if they are satisfied that they give a true and fair view of the charitable company's state of affairs and the charitable company's income and expendlture for that period. In preparing these financial statements, the Governors are required to: select suitable accounting policies and then apply them consistently,. observe the methods and principles in the Charities SORP IFRS 1021,. make judgments and estimates that are reasonable and prudent,. state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements,. and prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company'5 transactions, disclose with reasonable accuracy at any time the financlal position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charitvs constitution. They are also responsible for s4feguardin8 the charity's assets and, hence, for taking reasonable Steps to prevent and detect fraud and other irregularities. This Annual Report, prepared under the Charities Act 2011 and the Companies Act 2C¥J6, was approved by the Board of Governors on 19 January 2023. This approval includes the approval, in their capacity as company directors, of the Directors, and Strategic Reports contained within the Annual Report. The Annual Report is signed as authori5ed on behalf of the Board of Governors by.. Anna Birkett Governor Page 24 AUDITORS REPORT INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THE ROYAL BALLET SCHOOL OPINION We have audited the financial statements of The Royal Ballet School for the year ended 31 August 2023 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and note5 to the financial statements, including 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 Iunited Kingdom Generally Accepted Accounting Practicel. In our opinion the financial statements: give a true and fair view of the state of the charitable company's affairs as at 31 August 2023 and of its income and expenditure, 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 Companies Act 2006. BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial statements sect5on of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audlt 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 sufficierbt 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 statement5 is appropriate. Based on the work we have performed, we have not identified any material uncertainties relatin8 to events or conditions that, individually or collectively, may cast significant doubt on the charitable company'5 ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. OTHER INFORMATION The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility 15 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 Page 25 AUDITORS REPORT the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatement5, we are required to determine whether thls gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to ieport in this regard. OPINIONS ON OTHER MATtERS PRESCRIBED BYTHE COMPANIES 2006 In our opinion based on the work undertaken in the course of our audit the infomation given in the trustees, report, which includes the directors, report and the Strategic report prepared for the purposes of company law, for the financial year for whlch 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. MAThERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatement5 in the directors, report included within the trustees, report. We have nothing to ￿port in respect of the following matters in relatlon to which the Companies Act 2006 requires us to reF)Ort to you if, in our opinion.. adequate and proper accounting records have not been kept,. or the financial statements are not in agreement with the accounting records and returns,. or certain disclosures of trustees, remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit. RESPONSIBILITIES OF TRUSTEES As explained more fully in the trustees, responsibilities statement set out on page 20, the trustee5 Iwho are also the directors of the charitable company for the purposes of tompany lawl are responsible for the preparation of the financial statements and for being satisfied that they give 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 assessin8 the charitable company's ability to continue as a going concern, disclosin& as applicable, matters related to goln8 concern and using the going concern basi5 Qf accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable asstjrance 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 15 riot a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatement5 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. Page 26 AUDITORS REPORT Details of the extent to which the audit wa5 considered capable of detecting irregularities, Including fraud and non-tompliance with laws and regulations are set out below. A further description of our responsibilities for the audit of the financial statements 15 located on the Financial Reportin8 Council's website at.. www.frc.or .uk auditorsres onsibilities. This description forms part of our auditorfs report. EXTENTTO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETEcfiNG IRREGULARITIES, INCLUDING FRAUD Irregularities, including fraud, are instances of non-compliance with laws and regulations. We Identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in thi5 context were the Companies Act 2006 together with the Charities SORP IFRS10212019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company'5 ability to operate or to avoid a material penalty. We also considered the OppOrt￿nItieS and intentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were Education Ilndependent School Standardsl Regulations 2014, General Data Protection Regulation IGDPRI and Employment legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of voluntary intome and the override of controls by management. Our aL¢dit procedures to respond to these risks included enquiries of management and the Finance Committee about their own identification and assessment of the risk5 of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate, Ofsted and reading minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit, there 15 an unavoidable risk that we may not have detected some material mi55tatements in the financial statement5, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations lirregularitiesl is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forEery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. Pag& 27 AUDITORS REPORT USE OF OUR REPORT This report Is made solely to the charitable company's member5, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state lo them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable companrfs member5 a5 a body, for our audit work, for this report, or for the opinions we have formed. Tina Alllson Senior Statutory Audltor For and on behalf of Crowe U.K. LLP Statutory Auditor London 13 March 2024 Pag& 28 ROYAL BALLET SCHOOL STATEMENT OF FINANCIAL ACTIVITIES As at 31 Au8VSt 2023 STATEMENT OF FINANCIAL ACllVITIES Unrestricted Funds Restrlcted Funds Total Fund5 2023 Total Funds 2022 £000 Note General £000 Designated £000 £000 Income from: Charitable activities Donations Other income 9,556 982 199 9,556 11,486 199 9.229 3,245 60 10,504 Total Income 10,737 10,504 21,241 12.534 Expendifure on: Ralslng fund5 Development and fundraising 678 32 710 520 678 32 710 520 Charltablè activitles Teaching Pastoral and welfare Outreach and partnership Intensive Course5 Premises Support and governance Grants and prizes 2.914 990 814 473 4,027 2,085 370 578 438 66 33 3.284 1,568 1,252 539 s￿75 2.088 1,675 3,764 2,172 1,112 405 3,327 1,653 1,326 1,015 1.678 11.300 1,016 3,165 15,481 13,759 Total expenditure 11,978 1.016 3,197 16,191 14,279 Net incorne / lexpenditurel 11,2411 11,0161 7.307 5,050 11,7451 Transfers between fund5 other recognlsed losses Artuarial gain on defined benefit pension scheme 16,17 24g 13 13 1,086 Net movement in funds Total funds brought forward 11,2281 11.0161 7,307 5.063 16591 4,054 34,791 2,690 41.535 42.194 Total funds carrled forward 16.17 2,826 33,775 9,997 46.598 41.535 All transactions are derlved from the Charity's continuing operation5. All recognised gains and losses are included in the Statement of Financial Activities The note5 On pa8e 32 to 52 form part of these finantial statements. Pagg 29 ROYAL BALLET SCHOOL BALANCE SHEET As at 31 August 2023 2023 £000 2022 £000 Note Flxed assets Tangible assets li 36,330 37,094 Current asset5 Debtors Cash at bank and in hand 1,185 12,338 1,673 4,267 Total current assets 13,523 5,940 Creditors: amounts falling due within one year Trade and other credltors Deferred Income 13 14 11,4951 {1,5701 11.2001 1201 Net current assets 10,458 4.720 Total assets less current liablllt1è5 46,788 41,814 Credltor5: Amounts falling due after one year Is 11901 12201 Defined benefit pension scheme liabillty 24b 1591 Total net assets 18 46,598 41,535 The funds of the charlty: Unrestricted funds General fund Deslgnated funds 2,826 33.775 4,054 34,791 Total unrestrlcted funds 16 36,601 38,845 Restricted funds 17 9.997 2,690 Total ¢harlty funds 46.598 41,535 The financial statements on pages 32 to 52 were approved by the Board of Governors and authorised for Issue on 11 January 2024 and are signed on its behall bv.. Anna Birkett Gov Tom Clementl Governor nor Page 30 ROYAL BALLET SCHOOL STATEMENT OF CASH FLOWS For the year ended 31 August 2023 Note 2023 2022 £(￿0 Cash flow5 from operating actlvltles: Net c85h provided I lusedl by operating attivities A below 8,457 11.2731 Cash flow5 from Investlng actlvitles: Interest receivablè Interest payable Proteeds from sale of fixed assets Purchase of tangible flxed a$5ets 18 Iiii Iii) 14931 17411 Net cash used In Investing activities 13561 17341 Cash flows from flnancing activities Repayments of borrowing 1301 1301 Change In cash in the reporting perlod 8,071 12,0371 Cash at the beginnin8 of the year 4,267 6,304 Cash at the end of the year B below 12,338 4,267 Reconclllation of cash Ilows from operating actlvitie5: Note A 2023 £000 2022 £000 Net Expenditure. from the statement of financial 5.050 11,7451 Adjustments for.. Depreciation charge Deflned pension scheme net income Interest ieceivable Interest payable Proceeds from the sale of fixed assets Decrease / lincreasel in debtors Increase I Idecreasel in creditors 1.257 1,308 1271 1181 li 11481 li 12081 15941 1,845 Net cash provided / lusedl by operating actlvities 88S7 11,2731 Analysis of cash Note 2023 £tJoo 2022 £000 Cash at bank and in hand 12.338 4.267 Pagg 31 Royal Ballet School Notes to the financial statements vear ended 31 August 2023 NOTES TO THE FINANCIAL STATEMENTS l. Accountlng policies la Basis of accounting and golng concern The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021, the Companies Act 2006 and the Statement of Recommended Practice applicable to Charities preparing their accounts in accordance wlth thè FRS 102 - effective l January 2015. The functional currency of the School is considered to be GBP because that is the currency of the primary economic environment in which the School operate5. The accounts are drawn up on the historical cost basis of accounting. The Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future. The financial statements have been prepared under the going concern concept, on the understanding that the School will contlnue to receive sufficient financlal support to erbable it to meet its liabilities as and when they fall due for payment. The Governors have reviewed the posltion carefully with a view to ensuring the ongoing provision of schooling for the pupils as well as the employment of staff. There are currently significant cash balance5 should additionèl liquidity be required through this period of uncertainty. Accordingly, the Governors believe the School's financial resource5 are sufficient to ensure the School will continue as a goin8 concern for the foreseeable future, being at least 12 months from the date of approval of the financial statement5 and have therefore prepared the financial statements on the going concern basls. The School 15 a Public Benefit Entity registered as a charity in England and Wales and a companv limited by guarantee. It was incorporated on 31 March 1955 Icompany number.. 5470181 and registered as a charity on 12 November 1962 Icharity number- 2143641. Ib Crltlcal accounting judgements and key sources of estimation uncertainty In the application of the charity's accounting policies. which are described in this section, Governor5 are required to make Judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basls. Revisions to accounting estimates are recognised in the period in whith the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the Current and future periods. The key sources of estimation uncertainty that have a significant effect on the amount5 recognised in the financial statements are described in the accounting policies and are summarised below- Pension Ilabilities- The charity recognises its liability to its defined benefit pension scheme which involves a number of estimations as disclosed in note 24. Ic Income Income con51Sts of school fees and expenses due and receivable, income from performance5 and audition5, grants receivable from the Department for Education and other bodie5, donations, investment income and other income. This income is recorded in the Statement of Financial Activities when li becomes due to the School. Page 32 Royal Ballet School Notes to the financial statements year ended 31 August 2023 Government grants are recognlsed on the performance model whèn the charity has complied with any conditions attaching to the grant and the grant will be received. Id Expenditure Expenditure is recognlsed in the period in which the cost is incurred. Costs directly relating to a School activity are allocated to that activity. Support costs comprise salaries and overheads of central functions of management and administration. Governance costs are those costs incurred in Compliance with regulation and good practice and include costs relating to the statutory audit, Governors. meetings and other constitutional and statutory requirements. le Grant-making pollcy The Governor5 may from time to time make grants to The Royal Ballet School Endowment Fund on the basis that they are in the interests of the School. If Operatlng lease5 Rental payments under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable are an incentive to sign an operating lease and are similarly spread on a straight-line basis over the lease term. Ig Taxation Gift aid recovered on voluntary income is included with the donation to whlch it relates and irrecoverable VAT is included with the item of expenditure to which it relates. Ih Tangible fixed a55ets and depreciation All tangible fixed assets are stated in the balance sheet at C05t less depreciation. The depreciation of asset5 15 provided in equal annual instalments over the estimated useful lives of the assets. li Long leasehold property The original cost of the White Lodge long leasehold property was fully amortised in the period 1955 to 1976, although the lease was not due to expire until 2014. Subsequent major works and additions to the leasehold property were capitalised and amortised over the unexpired period of the lease, or evenly over the expecte(J useful lives of the major works and additions as appropriate. In November 2005 the School Surrendered its existing lease and entered into an agreement to lease the land and buildings for a further 100 years. A major redevelopment was undertaken in three phases from 2C()5 and completed in February 2009. Relevant leasehold costs are depreciated over the term of the lease. Building costs are depreciated over 40 years. The Floral Street leasehold property is depreciated over the term of 150 years commencing in 2C(J2, except for buildin8 Costs which are depreciated over 40 years. Up to 2009, the buildings had been depreciated over 25 years, but the policy was then reviewed and changed. The net book value at 31 August 2008 is now being depreciated over the remainder of the 40-year term. The Jebsen House property is depreciated over the lease term of 20 years ending in 2029. 11 Freehold property The Aud Jebsen Hall student accommodation is a freehold property and is being depreciated over 50 years from Easter 2016 when it was completed. Finance cost5 on loans taken out for the purchase of the property have been capitalised during the period when the property was being refurbished. Page 33 Royal Ballet School Notes to the financial statements year ended 31 August 2023 Ik Furniture, fixtures and eqtsipment Assets Wlth a cost of more than £1,￿0 are capitalised and these are depreciated over their expected useful lives as follows= Major refurbishment and minor structural thanges 10 years Furniture, fixture5 and equipment 5 -10 years Computer equipment 3 years Motor vehicles 4 years Assets in construction are not depreciated. 11 Liabilities Liabilities are recognised at the point that an obligation to make payment or transfer a55ets exists. and the value of that obligation can be measured with a reasonable degree of accuracy. Im Foreign currency Assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. Transartions in foreign currencies are recorded at the rate ruling at the transaction date. All differences are taken to the Statement of Financial Activities. In Pension schemes Employees of the School are entitled to join the group personal pension scheme and employer contributions are charged to expenditure in the accounting period in which they are payable. Until March 2023, Teacher5 were entitled to join the Teachers, Pension Scheme, an unfunded multi- employer defined benefits pension scheme. Contributions are charged to expenditure in the accounting period in which they are payable as if the scheme were a defined contribution scheme, as the School dDe5 not have sufficient information to account a5 a defined benefit scheme. The School operated a defined benefit scheme, The Royal Ballet School Pension and Life Assurance Plan, closed to new entrants in 2002 and for future accrual on 31 August 2012. The assets and Ilabilities of the scheme are reported in these financial statements as required by FRS 102. The statement of financial activities includes the expected return on scheme assets in investment income, the interest cost in other finance costs, and the actuarial gains and10sses arising from the annual valuation. The pension liability Is recognised in the balance sheet as the School has a legal obligation to settle the liability over the long term. See note 24 for more details on the pension schemes. lo Fund accounting Unrestricted funds comprise the accumulated unrestricted surplus or deficit each year. They are available for use at Governors, discretion in furtherance of the general charitable objectives. The general pensions reserve represents the deficit in the defined benefit pension scheme Isee note 241. Unrestricted designated funds are amoullts that have been put aside at the Governors, discretion. At the year-end, they comprised a Fixed asset fund, a Building maintenallce fund and a Pension Deficit fund. The Fixed asset fund represents the extent to which donated funds are invested in fixed assets for use by the School and. therefore, are not available for other purposes. The Building maintenance fund represents funds put aside to maintain buildings, especially White Lodge. The Pension Deficit Fund represents sums set aside to support the cash flows required to purchase annuities for deferred pension members. Restricted funds are funds subject to specific restricted conditions imposed by the donors. Detai15 of unrestricted funds are shown in note 16 and restricted fund5 in note 17. Page 34 Royal Ballet School Notes to the financial statements year ended 31 August 2023 Ip Financial instruments The School ha5 financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash and bank and in hand. together with trade debtors, accrued income n(J all creditors except Social securily and other taxes and provisions. Assets and liabilities held in foreign currency are translated to GBP at the balance sheet date at an appropriate year-end exchange rate. Page 35 Royal Ballet School Notes to the financial statements vear ended 31 August 2023 Charitable a¢tlvltles Income 2023 2022 £OCKJ EOCK) School fees- note 2a Extra5 and performance income Fees from AssOClate5, Summer School and teachers, courses Auditions and other income 7,352 49 1.993 162 7,298 132 1,641 157 9,5S6 9,228 School Fees School fees were funded by.. Grants from the Department for Education Bursaries from The Royal Ballet School Endowrnent Fund Bursaries from restricted donations Parents 3,502 soo 3.803 1,147 2,348 2,501 7.352 7.298 Dgnatlons 2023 2022 £000 £0 Grants Donations Friends 1,131 10.334 21 1,131 2,093 21 11,486 3,245 Other Income 2023 2022 £000 Investmenr incorne- bank interest Other income 148 51 18 42 199 60 Page 36 Royal Ballet School Notes to the financial statements year ended 31 August 2023 Trading subsidiary The Charity has one wholly owned subsidiary. TRBSE Enterprises Limited, whose registerèd address 15 46 Floral Street. London WC2E 90A. The 3Ctivities of TRBS Enterpri5e5 Limited are immaterial to those of the Group so consolidated accounts have not been prepared. Dve to the presentation of the School's accounts in round thousands. the subsidiary shares of £l(Xl held, are not shown as an investment in these financial statements. The COMpan￿S tradin@ results for the year extracted from ils audited financial statements were.. 2023 £000 2022 £000 Turnover Cost of sales 218 11831 141 1611 Gross profit Administrative expenses.. Licence to occupy premises Other expense5 35 li} 11591 80 iii 1871 ILos$1 on ordlnary activities before Eift aid 1125) 181 (Lossl on ordinary activities before taxatlon Tax on profit on ordinary activities {1251 ILossl for the year 11251 181 1146) 1211 Expendlture analysSs Total Total Staff costs £000 Depreciation £000 Other Costs £000 2023 £000 2022 £000 Ralsing funds Development and fundrai5in8 427 283 710 520 Charltsble activltles Teaching Pastoral and welfare Outreach and partnershlp Premises Support and governance Grants and prizes 2,784 1,062 954 834 1,089 500 506 837 2,984 999 1,675 3,764 2,172 1,517 3,327 1,653 1.326 1.568 1.791 5,075 2,088 1,675 1,257 6,723 1,257 7,501 15.481 13,759 Total expenditure 7,150 1,257 7,784 16,191 14,279 Page 37 Royal Ballet School Notes to the financial statements year ended 31 August 2023 Governance costs Total Total 2023 £000 2022 £000 Governance c05ts Included In support costs: Fees payable to the auditor for the statutory audit Ovèr accrual for prior year fees relating to the statutory audit Fees payable to the auditor for tax compliance Fee5 payable to the auditor for pension complian Board and committee costs 25 Iiii 20 Total 18 Finance and lease costs Total Total 2023 £000 2022 £ocM) Bank interest payable Interest on pension plan Operating leases.. land and buildin85 Operating lea5es.' pianos and office equipment li li 20 182 14 Grants and prizes expenditure Grants are foi student sponsorship and bursaries for full-time students, A5s0ciales and Intensive Course participants. Apart from a few scholarships for full-time student5, all grants are means-tested. Total 2023 EofK) Total 2022 £000 Other grants Prize5 1,669 1.320 Total 1,675 1.326 Page 38 Royal Ballet School Notes to the financial statements year ended 31 August 2023 io Staff costs 2023 2022 £000 Éooo Wages and salaries Social securitv COSts Other pension costs Other costs 6,285 622 581 28 5,828 577 601 20 7,516 7,026 One Governor ¢lalmed travel expenses of £147 in the year12022.' £2281. Total employee benefits, including employer pension contributions and national insurance of the Senior Leadership Tearn, were É1,008.82912022.. £990,052). The Sthool made aggregate termination payment5 of £nil12022= £34,863) wlth none outstanding at the year end. 2023 Number 2022 Number The numbor of hi8her paid employees in bands of: £60.001 to £70.IJ(h) £70,001 to £80,000 £80,001 to £90,000 £90,001 to £100,￿0 £IOO.001 to £llO,000 £iio,ooi to £120,OC 14 The avera8e headcount of the School's employees for the year 2023 was 25512022.. 2491. Pago 39 f15 0 T5 Royal Ballet School Notes to the financial statements year ended 31 August 2023 12 Debtors 2023 £000 2022 £000 Amounts falling due within one year: Fees and recoverable extras Intercompany Cc*nnected charity (sèe Note 221 Other debtors Prepayments Accrued Income Oepartment for Educatlgn - Music and Dan￿ Scheme fee funding yo 320 27 212 421 207 417 206 175 837 Total I.IB5 1,673 13 Credltors.. amounts falllng due within onè year 2023 £000 2022 £000 Trade creditors Taxation and Social securlty Other credltors Accruals Bank loan due wlthin one year Department for Education- Music and Dance Scheme fee funding 401 178 426 460 391 158 127 313 30 181 30 Total 1.49S 1,200 14 Deferred Income 2023 £LW)O 2022 £000 Donatlons in advance Department for Education- Music and Dance Scheme fee fundlng in advance 70 1,500 20 Total 1,570 20 Page 41 Royal Ballet School Notes to the financial statements year ended 31 August 2023 15 Credltors.. amounts fallSng due after one year 2023 £0 2022 EOOO Creditor5 due in 2 to S years Bank loans Creditors due In 5 year5 Bank loans 121 121 69 99 Total 190 220 Bank loans at 31 August 2023 include a fixed rate loan of £219,70812022.. £250,009) repayable by November 2030, with £30,000 due within one year, and an interest rate is 6.01% per annum. This loan 1$ Secured by a charge over the White Lodge propertv. 16 Unrestrlcted funds Balance as atlSep22 £000 Income Expenditure Transfers Gains/ IL055esl Balance as at 31 Au8 23 £000 £000 £0 £000 £000 Deslgnated Fixed asset fund Building maintenance fund Pension Deflcit Fund 33,841 500 450 11,0151 32,826 soo 449 34,791 11,0161 33,775 General Pension reserve Free reserve5 1591 4,113 iii 111,9771 47 1471 13 10,737 2,826 4,054 10.737 111,9781 529 2,826 Total 38,845 10,737 112,9941 529 36,601 Pagg 42 Royal Ballet School Notes to the financial statements year ended 31 August 2023 Unrè5trtcted funds 2021-22 Balance as at15ep21 £o(K) Income Expenditure rransfers Gains/ (Lossesl Balance a5 at 31 Aug 22 £000 £000 £000 £000 Deslgnatèd Fixed asset fund Building maintenance fund Associate Programme Pension Deficit Fund Deferred IT and buildin8 maintenance fund 34.223 500 311 450 13821 33,841 500 13111 450 106 11061 35.590 14881 34,791 General PEn5ion reserve Free reserve 11.1721 4.027 1201 110,9151 47 264 1,086 1591 4,113 10.737 2,855 10.737 110,9351 311 1,086 4.054 Total 38.445 10,737 111,4231 1,086 38,845 Unrestrlcted funds are available for use at the discretlon of the Governors in furtherance of the general oblectives of the charity. Certain unrestricted funds are designated for other purpose5. The unrestricted funds are as follows.. Designated flxed asset fund This fund represent5 amounts expended on tangible fixed a$5ets requlred for the operation of the School. Deslgnated buildln8 maintenance fund Thi5 fund represents amounts designated and set aside by Governors to fund the ongoing repairs and maintenance of White Lodge. The School has received planning permission to undertake an expansion of the Senior Boarding Block at White Lodge. These funds are set aside to support the development of the design and any associated enabling works. Deslgnated Penslon Deflclt Fund The Royal SchocTrl Pension and Life Assurance Scheme closed to new members in 2006 and ceased accrual in 2012. There are 21 deferred members, with the last member due to retire in 2034. The Triennial valuation of I SeptembÈr 2022 showed a funding deficil of £76,000 and the School ha5 submitted a recovery plan to The Pension Regulator (see Note 241. These funds are set aside to rlleet future cash commitment5 for member annuities as the recovery payrnent plan 15 phased evenly over the remaining life of the Scheme but member retirements are more SFtoradic. General reserves The pension reserve represents the School's assets in respect of The Royal Ballet School Pension and Llfe Assuiance Plan, a defined benefit scheme now closed to new members Isee note 241. P8ge 43 Royal Ballet School Notes to the financial statements vear ended 31 August 2023 The free reserves represent the balance of unrestricted funds which have not been designated and are avallable for use at the discretion of the Governors in furtherance of the general charitable activities. This is before deducting the pension reserve, as the pension deficit is 3 long-term liability. Transfers £47,000 of general funds were transferred to the pension reserve tts cover ihe costs of employer pension deficii repayments in the year. 17 Restrlcted fvnd$ Balance as at I Sep 22 £CN)D Income Expenditure Transfer5 Balan¢e os at 31 Aug 23 £000 £000 £¢x)o Capital projects Special projects Sponsorship, burs8rie5 and prizes Outreach and Access fund 8allet and artisttc fund5 Healthcare Eoulprnent Intensive Courses Eoval Opportunities 7.500 7.500 46 75 555 479 378 1.018 65 120 1791 11,6781 14381 13311 15421 1331 1661 1301 1.479 425 274 1171 339 466 273 1481 306 782 32 319 240 200 270 65 2,690 10,504 13,1971 9,997 Restritted fund$ 2021.22 8alance a5 at I Sep 21 £0 Income Expenditure Transfers Balance as at 31 Au8 22 £000 £000 £000 £0 Aud Jebsen Hall- Pimlico Appeal Capital prolett5 Special projects Sponsorship, bursarie5 and prizes Outreach and Acce55 fund Ballet and artistic fund5 Healthcare Equiptnent IhtensNe Courses Wi-Fi cablin8 Films 49 1491 81 1,340 147 830 11531 11,6151 14151 12001 12501 1861 75 555 408 146 479 378 432 1,003 151 116 20 63 265 1,018 65 120 1201 3.749 1,796 12,8551 2,690 Restricted funds are used in accordance with speciflc restrictions imposed by donors or which have been raised by the charlty foi particular purposes. A signiflcant proportion of donations are received in the current in advance of expendlture In the following year. Page 44 Royal Ballet School Notes to the financial statements year ended 31 August 2023 Capital prohcts Thi5 donation Is to fund the development of the White Lodge estate. Speclal projerts The balance on this fund is to enable full-tlme student5 to broaden thelr educational experience through the development of professional and life skills and supporting cultural trips. Sponsorshlpi bursarles and prlzes This tund In¢ludes donations for financial suppori for full-time students, Associates and Summer School students and some prizes. All support is means-tested apart from a small number of scholarships. The School awards places based only on talent, so this support is particularly crucial to help fund overseas students. which rai5e5 the standard for all students and allows the School to maintain its place as one of the besl classical ballet schools in thè world. Outreach and Access This fund represents grants froTh the Department for Education, Tru5t5 and Foundations and other donor5 to further the aims and objectlve5 of the School's Outreach and Access programme. Ballet and artlstic funds These donations are restricted for performances and new ballets, graduate tours, thoreo8raphy and the Creative Artist Pro8ramme, which all help add brea(Ith and depth to student training. The Creative Artist Programme was introduced to broaden the students, artistic experience by exposin8 them to a broad ranEe of experts who have excellÈd in their field, both in artlstie and in other areas. Healthcare This donation is to help the School improve ￿t$ healthcare provlsion for three years, through the Healthy Dancer programme. Equlpment Donations have been received to fund the updatln8 of the technlcal equipment In the Margot Fonteyn Theatre at White Lodge, an(J Smart screens for ¢13ssrooms to allow academic teaching across the two School site5. Intenslve Courses Thls fund is to support the expansion of the Intensive Course programme into Hong Kong and Japan and provide financlal assistance to students from Hong Kon8 and Japan who may otherwise be unable to pav for the course. Equal Opportunitles This is a new fund to offer needs-based, additional financial support to full-tlme students over and above fee bursaries. The fund aims to ensure equity of experience for Èach student5, regardless of their backgroTrund. Page 45 Royal Ballet School Notes to the financial statement5 vear ended 31 August 2023 18 Allocatlon of assets by fund type Unrestricted dosignated fund5 £000 Unrestricted general fund £000 Restricted funds £000 Total 2023 Éooo Fixed assets Debtors Cash at bank Creditors- due within one year Creditor5.' due after one year 3,504 1,185 1,392 13,0651 11901 32,826 36,330 1,185 12,338 13,0651 1190) 949 9,997 2,826 33,775 9,997 46.598 Allocatlon of assets by fund type 2021-22 Unrestricted flesignated funds £000 Unrestricted general fund £(￿0 Restricted funds £000 Total 2022 £000 Fixed asset5 Debtors Cash at bank Creditors.. due wrthin one year Creditors.. due 3fter one year Defined benefit pension scheme deficit 3.253 1,673 627 11,2201 12201 1591 33.840 37,093 1,673 4,268 11.2201 12201 1591 951 2,690 4,054 34.791 2,690 41,535 19 Liability of members The Charitable company 15 limited by gu8r4antee and does not have a share capilal. In the event of the Company being wound up, the maximum amount which each member is liable to contribute is £1. There were IS12022'.161 members at the yeai-end who are the Governors of the School. 20 Cap5tal commitments The capital commitments at the end of the ¥eporting period were £nll12022.' £69,684). Page 46 Royal Ballet School Notes to the financial statements year ended 31 August 2023 21 Commitment5 under operatlng leases 2023 Éooo 2022 £000 The total of future minimum lease payments under operating leases for each of the following periods". Not later than one yÈar Later than one year and not later than five years Later than flve years 190 662 186 772 274 8S2 1,232 22 Related party transactlons TRBS Enlerprlses Limlted The subsidiary charity trades by hiring out School premises at times when they are not required by the Schoc*l. During the year the following transactions were made wlth the School.. The School recharged £171,94112022'. £5,580) of ¢ost5 for staff time and other costs directly relaled to the activities of the subsidiary. The School char8ed licence fees of £l.00012022'. £1,000) to the subsidiary. At the end of thè year the School was owed £319,548 by the subsidiary, see note 12,12022.. £211,607). The Royal Ballet School Endowment Fund The connected charity The Royal Ballet School Endowment Fund provides fundlnB and facilitie5 for the students of The Royal Ball@t School. During the year the followlng transactions were made with the School.. The School received grants of £575,00012022'. £29,500) from the Endowment Fund. The grants paid for bursaries for students for School lees. The Royal Ballet School collection and a grant lor our A5SOClate Programme5 in Birmingham, Bath and Totnes. The School does not charge the Endowment Fund for staff time for adrninistering the charlty. At the end of the year the School was owed £nil by the Endowment Fund12022'. £421,077). Govemors of The Royal Ballet School Governors did not receive any payment or expenses from the School as disclosed in note 10. The total amount of donations received from Governor5 in the year was £164,07512022'. £64,314). None of the Governors, donatlons were Biven with conditions ihat required the charity to alter the nature of its existing activitiès. 23 Taxatlon As a registered charity, The Royal Ballet School is potentlally exempt from taxation of income and Éains falling within sections 466 to 493 of the Corporation Tax Act 2010 and section 521 to 536 of the Income Tax Act 2007. Page 47 Royal Ballet School Notes to the financial statements year ended 31 August 2023 24 Pensiorb commitments The School operates a group personal pension gtheme and also a deflned benefit scheme which was closed to future accrual on 31 August 2012, known as The Royal Ballet School Pension and Life Assurance Plan. Until 31 March 2023, the School participated in the Teachers. Pension Scheme. From l Aprll 2023, teaching staff moved io the group personal pension scheme. Group personal pension scheme Contributions for the group personal pension scheme are charged to expenditure in the accounting period in which they are payable. Pension charges for the year were £369,00012022.- £385,000>. Teachers, Penslon Scheme The penslon charge for the year includes contributions payable to the TPS of £165,00012022'. £216.0001. The Royal Ballet School Pension and Ufe Assurance Plan Ithe"Plan"I Thi5 defined benefit pension scheme provides benefit5 based on penslonable pay up to 31 August 2012 when the Scheme ceased accrual. The assets of the Plan are held sepaiately from those of the School, being invested with Clerical Medical and General Lifè Assurance Society in their Pension Contract. Contributions and triennial valuations The contribution5 are recommended by an independent qualified actuary from Clerical Medical on the basls of triennial valuation5 carried out by the attuary on behalf of the Trustees of the Plan. The most recent triennial valuation was as at I September 2022. The market value of the Plan'5 asset5 was £7.451,000 and thè benefits accrued to rnember5 were £7,527,000, giving a funding deficit of £76,000 and a funding level of 99%. The actuarial assumption5 underlying this valuation are different to those adopted under FRS 102 included in these finan¢lal statements. The Trustees have agreed with the School that contributions will continue at £3,917 pEr month from I Septembèr 2022 to improve the funding level in the Plan to addre55 the deficit. In the year to 31 August 2023. £47.00412022'. E47.0001 was paid. The balance of £29,000 will be paid in 2023124 with the defi¢it repaid by May 2024. The funding position of the Plan and eontributions to be paid will be revlewed again at the next triennial valuation due as at I September 2025. Valuation for these financlal statements under FR5 102 The Plan was valued at the end of the reporting period by a qualifièd Independent Aeiuary in accordance with Financlal Reporting Standard 102, and the following notes 24a to 241 relate to this valuatlon. This valuation has different actuarial assumptions to the triennial valuation. P8ge 48 Royal Ballet School Notes to the financial statements year ended 31 August 2023 24a The prlnclpal actuarlal assumptlons at the end of the reportlng period lexpre55ed a5 weS8hted avera8esl: 2023 £o(J) 2022 £000 Discount rate RPI assumption CPI assumption LPI pension increases 5.2% 3.5% 2.9% 3.3% 4.2% 4.0% 3.2% 3.8% The underlying mortality assumption is based upon the standard table known as S3PxA projected on a vear of birth basis wlth CMI 2022 future improvement factors and a long-term rate of future improvements with 1.25% p.a.12022.. S2PxA with CMI 2021 future improvement factors and a long-term future rate of improvement of 1.25% p.a.l. This results In the following life expectancies.. Years Years 88.5 89.6 Life expectancy for 60-year-old fernale Life expectancy for 45-year-old fernale 24b The amounts recognlsed In the balance sheet.. 89.8 2023 £000 2022 £000 Present value of Plan liabilitie5 Market value of Plan asse15 Restrictions on lecoverable surplus 12.0431 2,559 15161 12,5561 2.497 Net defined benefit liabilliy 1591 24c Amounts Included wlthln the Statement of Financial ActlvltSes IsoFAI'. 2023 2022 £000 Current service tost Interest on net defSned benefit asset Past service cost 1201 Total amount charged within net incoming resources 1201 Page 49 Royal Ballet School Notes to the financial statements year ended 31 August 2023 24d Changes In the present value of Plan Ilabilitle5: 2023 £0 2022 £000 Present value c*f scheme liabilities at beginnin8 of the year Past service cost Beneflts paid Interest on Plan Ilabllities 12,5561 13,5741 58 22 1611 {1061 561 Actuarial lossl18ainl 1,057 Present value of Plan liabilities at end of the year 12,0431 12,5561 24e Changes In the fair value of Plan assets.. 2023 2022 £000 Market value of Plan assets at beginning of the reporting period Employer contributions BenePits pald Interest on Plan 355ets Return on assets, less interest included in the SOFA 2,497 47 158) 105 1321 2.402 47 1221 41 29 Market value ef the Plan assets at the end of the reporting period 2,559 2,497 Actual return on Plan assets 70 24f The malor categoTles of Plan a55ets as a percentate of total Plan a55ets: 2023 2022 Group pension contract Cash loo% 0% The Plan had no investments in property occupied by, assets used by or financial instruments 15sued by the School. Page 50 Royal Ballet School Notes to the financial statements year ended 31 August 2023 248 Analysls of the measurement of the net defined beneflt Ilability recognised In Other rècognised losses In the SOFA: 2023 £000 2022 Return on a55ets, less interest included in the SOFA Experience gains and losses arising on Plan liabilitie5 Changes in assumptions underlying the present value of Plan 1321 32 13 29 12151 1,272 Actuarial lossllgalnl recognised in Other recognised losse5 13 1,086 24h Movement rn surpluslldeflcitl durlng the year 2023 £000 2022 £000 Deficit in the scheme at the beginning of the year Interest recognised in thè SOFA Employer contributions Actuarial10551lgainl reco8nised in Other recognised105se5 in the SOFA 1591 11,1721 1201 47 1.086 47 529 SurplusllDeficitl In the scheme at the end of the year 516 1591 Page 51 Royal Ballet School Notes to the financial statements vear ended 31 August 2023 25 statement of financial actlvltles-comparative figures for the prlor period by fund Unrestrirted Funds Restrlrted Funds Total Funds 2022 £000 Note General £000 Designated £000 £000 Income from: Charitable artivities Donations other income 9,228 1,450 60 9.229 3,245 60 1,795 Total rhtome 10,738 1,796 12.534 Expenditure on.. Raising funds Development and fundralslng 407 113 520 407 113 520 Charltable actlvitie5 Teaching Pastoral and welfare Outreach and partnership Intensive Courses Premises Support and governance Grants and prizes 3,340 1,917 673 355 2,609 1.633 424 255 439 50 230 20 1,324 3,764 2,172 1.112 405 3.327 1,653 1,326 488 10,529 488 2,742 13,759 Total expendlture 10,936 2,855 14,279 Net income I lexpenditurel 11981 14881 11,0591 11.7451 Transfers between funds Other recoÈn15ed losses Actuarial Ilossesl/gain on deflned benefit pension scheme 16,17 311 13111 24g 1,086 1,086 Net movement in funds Total funds brought forward 1.199 17991 11,0591 1659) 2,855 35,590 3,749 42,194 Total funds carrled forward 16,17 4.054 34.791 2,690 41,535 All transactiohs are derlved from the charitvs continuing operatlons. All recognSsed gains and losses are included in the Slatement of Financial Activities Pagg 52