THE ROYAL PHILHARMONIC ORCHESTRA TRUST Registered Charity Number 232370 Report of the Trustees and Financial Staternents For the Year ended 5 April 2021 The Royal Philharmonic Orchestra Trust Trustees, Report and Financial Statements for the Year ended 5 April 2021 Contents Page Trust Information Report of the Trustees Independent Examinerfs Report statement of Financial Activities Balance Sheet Notes to the accounts The Royal Philharmonic Orchestra Trust Trustees, Report and Financial Statements for the Year ended 5 April 2021 Trust Infom)ation Trustees Sir Peter Ellwood (Chairl John Bimson Benjamin Cunningham Banker Bank of Stotland Pentland House 8 Lochside Avenue Edirbburgh EH12 9DJ Registered Office 16 Clerkenwell Green London ECIR OQT Independent Examlner Charles Ssempijja, ACA NFP Accountants Ltd 3 Floor, 86-90 Paul Street London EC2A 4NE The Royal Philharmonic Orchestra Trust Trustees, Report and Financial Statements for the Year ended S April 2021 Report of the Trustees for the Year ended 5 Aprll 2021 The Trustees present their annual report and the financial statements of the Royal Philharmonic Orchestra Trust for the year ended 5 April 2021. These comply with the Charities Act 2011. The Trustees have also adopted the provisions of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland, issued in July 2014 and updated in February 2016 and October 2018. Constitution and Objects The Royal Philharmonic Orchestra Trust I'the Trusy'l was established on 9 November 1963 with the objective of the advancement of the musical education of mankind and in particular promotin& encouraging and supporting the study, practice and performance of orchestral music by the Royal Philharmonic Orchestra. It is a charity registered with the Charity Commissioners for England and Wale5 (registration no. 2323701. Related parties Royal Philh3rmonic Orchestra Ltd is an independently controlled but connected charity re8lStered with the Charity Commissioners for England and Wales (registration no. 2445331. During the year, the Trust has charged £108,000 rent to Royal Philharmonic Orchestra Ltd as explained in note 2 and note 8. The Trust has also purchased shares in Royal Philharmonic Orchestra Ltd from two Members of the Orchestra on their departure from the Orchestra. Royal Philharmonic Orchestra Ltd has refunded the relevant members for their shares. leading to an increase in the balance owed by the Trust to Royal Philharmonic Orchestra Ltd of £2,0￿) as shown in note 7. Public Benefit The principal asset of the Trust is a freehold property which is leased to the Royal Philharmonic Orchestra for its administrative office5. This facilitates the work of the Orchestra, which reaches the public at large through orchestral performances, recordings and music making workshops that enrich lives. The Trustees can therefore Confirm that the Trust has complied with the duty in section 17 of the Charities Act 2011 to have due regard to the guidance on public benefit published by the Charity Commission of England and Wale5. Governance The Trustees during the year to 5 April 2021 and up to the date of this report are.. Sir Peter Ellwood (Chairl John Bimson Benjamin Cunningham The Royal Philharmonic Orchestra Trust Trustees, Report and Financial Statements for the Year ended 5 April 2021 Achievements and Performance During the year, the Trust has continued to rent its freehold property to the Royal Philharmonic Orchestra. Financial Review The results for the year to 5 April 2021 and the preceding financial year are set out in the Statement of Financial Attivities on page 6. Total income for the year was £108,18012020 - £30,660) primarily comprising rent received from Royal Philharmonic Orchestra Ltd. Rent was waived until December 2019, after which the Trustees began to build reseNes in order to be able to refurbish and maintain the Trust's freehold property at a future date and continue to support the work of the Royal Philharmonic Orchestra. The surplus in the year, after total costs of £900, was £107,28012020- £23,734). Unrestricted reserves of £625,758 at 5 April 202112020 - £518,477) include £470,585 representing the cost of the freehold property owned by the Trust. Employees and volunteers The Trust had no employees and no volunteers, other than the Trustees in either 2021 or 2020. The Trustees were not renumerated for their services and no expense5 were reimbursed. Statement of Trustees, Responsibilities The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generallv Accepted Accounting Practice.) In preparing these financial statements, the Trustees are required to.. Prepare financial statements for each financial year which give a true and tair view of the state of the affairs of the Trust Select suitable accounting policies and then apply thern consistently,. Observe the method5 and principles in the Charities SORP- Make judgements and estimate5 that are reasonable and prudent,. State whether applicable UK Accounting Standards have been followed, subject to any material departures disc105ed and explained in the financial statements,. Prepare the financial statements on the going concern basis unless It is inappropriate to presume that the Trust will continue in operation. The Royal Philharmonic Orchestra Trust Trustees, Report and Financial Statements for the Year ended 5 April 2021 The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Trust. They are also responsible for safeguarding the a55ets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees, Annual Report is approved by the Trustees By order of the Trustees Peter Ellwood Chair 18 November 2021 The Floyal Philharmonic Orchestra Trust Tru5tees' Report and Financial Statements for the Year erbded 5 April 2021 Independent examinerfs report to the Trustees of The Roy31 Philhamionic Orchestra Trust I report to the Trustees on my examination of the accounts the Royal Philharmonic Orchestra Trust Ithe Trust) for the year ended 5 April 2021. Responslbilities and basis of report A5 the charity Trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 20111"the Act"l- I report in respect of my examination of the Trusvs accoLtnts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 14515llbl o* the Act. Independent examinerfs statement I have completed my examination. I confirm that no materlal matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: l. Accounting records were not kept in respect of the Trust as required by section 130 of the Act,. or 2. The accounts do not accord with those records,. or 3. The accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulation5 2008 other than any requirement that the accounts give a true and fair view, which is not a matter considered as part of an independent examination. Departure from the 2008 Regulation5 l understand that the financial statements have been prepared to give a 'true and fair, view, and have departed from the Charities IAccounts and Reports) Regulations 2008, only to the extent required to provide a 'true and fair view,. This departure has involved following SORP 2015 FRSIO2, rather than the Accounting and Reporting by Charitie5.' Statement of Recommended Practice effective from l April 2005 ISORP 2CK)51, which is referred to in the exitent regulations, but has since been withdrawn. Conclusion I have no concerns and have come across no matters in connection with the examination to which attention should be drawn in this report in order to be enable a proper understanding of the accounts to be reached. Si8ned= Charle5 S5empijja, ACA NFP Accountants Ltd 3, Floor, 86-90 Paul Street. London EC2A 4NE Date.. 18 November 2021 The Royal Philharmonic Orchestra Trust Trustees, Report and Financial Statements for the Year ended S April 2021 Statement of Flnancial Activities for the year ended 5 April 2021 Unrestrirted and Total Funds Year to 5 April 2021 Unrestricted and Total Funds Year to 5 April 2020 Note Income from Charitable Activities Investment income 108,000 30,560 loo Total Income 108,180 30,660 Expenditure on Charitable Activities 900 6,926 Total Expenditure 6,926 Net Incorne for the year 107,280 23.734 Unrestricted and total funds brought forward Unrestricted and total funds carried forward 518,477 494,743 625,758 518.477 There were no recoEnised gains and losses in the current or preceding financial year other than those dealt with in the Statement of Financial Activities. All income and expenditure relates to continuing activities. The note5 on pages 9 to 12 form part of these financial statements. The Royal Philharmonic Orchestra Trust Trustees, Report and Financial Statements for the Year ended 5 Aprll 2021 Balance Sheet as at 5 Aprll 2021 Total Fund5 As at 5 April 2021 Total Funds As at 5 April 2020 Note Fixed Assets Tangible Fixed Assets 470,585 470,585 Totsl Fixed Assets 470,585 470,585 Current A55ets Investments Cash at bank and in hand 92,000 93,033 15,(NJO 59,852 Total Current Assets 185,033 74,852 Creditors . Amounts falling due within one year 129,860) 126,9601 Net Current Assets 155,173 47,892 Total Assets less Current liabilities 625.758 518,477 Net Assets 625,758 518,477 Funds Unrestrirted Funds 625,758 518,477 Total Funds 625,758 518,477 The notes on pages 9 to 12 form part of these financial statements. Approved by the Trustee5 and authorised for issue on 18 November 2021 Peter Ellwood Chair The Royal Philharmonic Orchestra Trust Trustees, Report and Financial Statements for the Year ended 5 April 2021 l. Notes to the Financial Statements for the year ended 5 April 2021 a. Accounting convention The financial statements have been prepared in accordance with the United Kingdom Accounting Standards, in particular 'FRS 102.. The Financial Reporting Standard applicable in the UK and Republic of Ireland" IFRS 1021. The Royal Philharmonic Orchestra Trust 1.the Trust") is a public benefit entity for the purposes of FRS 102 and a re8iStered charity. Its financial statement5 are therefore also prepared in accordance with the "Statement of Recommended Practice applicable to charities preparing their accounts in accordan￿ with FRS 102" (Charities SORP IFRS 10211. The financial statements have been prepared on a going concern basis and under the historical cost convention. The principal accounting policies are set out below and have been applied consistently throughout the year. The financial slatements are prepared in sterling, the functional currency of the Trust. Monetary amount5 are rounded to the nearest pound. b. Going ¢oncem The Trustees have assessed whether the use of the going concern basis of preparing the account5 15 appropriate and have considered the impact of the COVID-19 pandemic as well as other possible events or condition5 that might cast significant doubt on the ability of the Trust to continue as a going concern. The Trustees have made thi5 assessment for a period of at 5east one year from the date of approval of the financial statements. The Trust has the ability to charge rent to the Royal Philharmonic Orchestra Limited, the current tenant of the property owned by the Trust. Although the Trust has waived rent in several past years, it is now charging rent at a markel rate and building its funds to be able to weather a period without a tenant and to refurbish the property when it Is vacant. The Trustees are confident that rental income will exceed cost commitments for 2022 and for the foreseeable future. Significant accounting estlmates and judgements In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statememt5. The treatment of the property owned by the RPO Trust is considered by the Trustees to have the most Significant effect on amounts recognised in the financial statements. The Property, 16 Clerkenwell Green, is recognised in the financial statements as a tangible fixed a55et, because it is rented to a related charity. It is recognised at cost and has not been depreciated because it has retained its economic value at the en(1 of each financial year. The Royal Philharmonic Orchestra Trust Trustees, Report and Financial Statements for the Year ended 5 April 2021 l. Notes to the Financial Statements for the year ended 5 April 2021 (continued) d. Income Income comprises rent from 16 Clerkenwell Green and interest on term deposits. Income is recognised when received and the Trust is entitled to the income. e. Expenditure Expenditure is incurred, either in relation to the property, 16 Clerkenwell Green or in connection with the governance of the charity, includin8 maintaining Trust deeds and other compliance. f. TanEible Fixed Assets The Trusys Tangible Fixed Asset is an office rental property 16 Clerkenwell Green, London. It 15 recognised at cost and not depreciated, becaLJse it Includes land in a central London location and its residual valuation is at least equal to its cost. The last formal external independent valuation of the property was undertaken in 2018. In subsequent years. a range of central London property market indicators has been used to determine whetherthere is a possibilitythat an impairment of the carrying value of the property could have occurred. g. Cash and Cash equlvalents Cash and cash equivalents include cash in hand, deposits held at call with banks and other 5hort-term liquid investments with maturities of three months or less. h. Flnanclal Instruments The Trust has elected to apply the provisions of Section 11 'Basic Financial Instrumentg of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Trust's balance sheet when the Trust becomes party to the contractual provisions of the instrument. Financial a55ets and liabilities are offset, with the net amount5 presented in the financial statements, when there is a legally enforcea ble right to set off the recognised amounts and there is an intention to settle on a net ba51S or to realise the asset and settle the liability simultaneou51y. All debtor and creditor balances are considered to be basic financial instruments under FRS 102. Investments Investments include a minority shareholding in Royal Philharmonic Orchestra Limited and fixed term bank deposits of more than three months. Shares in Royal Philharmonic Orchestra Limited are available for sale to new Orchestra Member5. Share5 are purchased from Orchestra Members when they leave the Orchestra. Contributions from new Royal Philharmonic Orchestra Member5 for shares are collected by Royal Philharmonic Orchestra Limited and recogniseé as receivable from Royal Philharmonic Orchestra Limited when the full amount required to purchase a Memberfs shareholding of 100 £10 share5 h35 been contributed and the share certificate i55ued. Contributions are repaid to Members when they leave, by Royal Philharmonic Orchestra Limited and the Trust recognises the amount a5 refundable to Royal Philharmonic Orchestra Limited. The Royal Philharmonic Orchestra Trust Trustees, Report and Financial Statements for the Year ended S April 2021 Notes to the financial statements for the year ended 5 April 2021 Icontinuedl 2. Income from Charltable Activities Income from Charitable Activities in the year ended 5 April 2021 and 2020 is rent charged to Royal Philharmonic Orchestra Limited from 20 December 2019. 3. Investment income Interest earned when fixed term bank deposits of more than three months reached maturity. was £180 in 202112020- £1(K]I. 4. Independent Examlnerfs Fee Expenditure is stated after charging the Independent Examinerfs fee of £1,14012020- £2,5201. Expenditure on Charitable Activlties Expenditure in the year ended 5 April 2021 of E900 is the Independent Examinerfs fee for the financial year of £1,140. net of a £240 redurtion in the Independent Examine¢s fee charged for the previous year. In 2020, costs of £6,926 comprised legal fees for updating the Deed of Resignation and Appointment of Trustees and for advice in relation to 16 Clerkenwell Green and the Independent Examinerfs fee (note 41. 6. Tangible Fixed Assets The Trusys Tangible Fixed Asset is the freehold property 16 Clerkenwell Green, which is shown at cost of £470,585 at both 5 April 2021 and 2020. 7. Investments- current assets As at 5 April 2021 As at 5 April 2020 Fixed term bank deposit Shares in Royal Philharmonic Orchestra Ltd 85,000 7,(M)O 10,000 5,000 Totsl Investments- current assets 92,000 15,000 The Royal Philharmonic Orchestra Trust Trustees, Report and Financial Statements for the Year ended 5 April 2021 Notes to the financial statements for the year ended 5 April 2021 Icontinuedl 8. Creditors due in le55 than one year A5 at 5 April 2021 As at 5 April 2020 Deferred rental income Payable to Royal Philharmonic Orchestra Ltd Accruals 23.440 3,CN)O 3,420 23,440 1,000 2,520 Total Creditors due in less than one year 29,860 26,960 Deferred rental income in each year represents the portion of the rent received for the 24 March to 24 June quarter, which is attributable to the period after 5 April. The amount due to Royal Philharmonic Orchestra Ltd represents payments for purchases of shares in Royal Philharmonic Orchestra Ltd not transferred at the year end. The accrvèl at the year end represents the Independent Examinerfs fee for the year ended 5 April 2021 of £1,140 and £2,280 accrued for the Independent Examinerfs fee for the year ended 5 April 2021 not invoiced until 6 April 2021. Funds The Fund5 held by the Trust at both 5 April 2021 and 5 April 2020 are unrestricted. 10. Operating Leases The Trust has future operating lease rentals arising as ft)Ilows'. As at 5 April 2021 As at 5 April 2020 Operating lease renta15 arising in: Less than one year Two to five years 108.000 216.000 108,000 324.000 324,000 432,000 The Trust has leased 16 Clerkenwell Green to the Royal Philharmonic Orchestra LiTnited since August 1986. For several year5 prior to 2020, it offered a rent waiver to the Orchestra. Rent, at a current market rate was reinstated in December 2019. The lease is currently expected to end in June 2024. 11. Capital commitments The Trust had no capital commitments at 5 April 2021 or 5 April 2020.