THE ROYAL PHILHARMOI4IC ORCHESTRA TRUST Re8i5tered Charlty Number 232370 Report of the Trustees and Financial Ststements Forthe Year ended 5 April 2024
The Royal Philhamionic Orchestra Trust Trustees. Report and Financial Statements for the Year ended 5 April 2024 Contents Page Trust Information Report of the Trustees Independent Examinerfs Report Statement of Financial Activities Balance Sheet Notes to the actounts IIPage
The Royal Philharmonic Orchestra Trust Trustees, Report and Flnancial Statements for the Year ended 5 April 2024 Trust Infomiatlon Trustees Sir Peter Ellwood Ichalrl John Bimson Charles Fairweather Andrew Storey Banker Bank of Scotland Pentland House 8 Lochside Avenue Edinburgh EH12 9DJ Registered Office 16 Clerkenwell Green London ECIR OQT Independent Examlner Charles Ssempiiia, FCA NFP Accountants Ltd 3 Floor, 86-90 Paul Street London EC2A 4NE 21Page
The Royal Philharmonic Orchestra Trust Tru5tees' Report and Financial Statements for the Year ended 5 April 2024 Report of the Trustees for the Year ended 5 Aprll 2024 The Trustees present their annual report and the financial statements of the Royal Philharmonic Orchestra Trust for the year snded 5 April 2024. These comply with the Charities Act 2011. The Trustees have also adopted the provisions of the Statement of Recommended Practite applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 updated and reissued in January 2022. Constitution and Oblects The Royal Philharmonic Orchestra Trust I'the TrusV'I 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 Wales (registration no. 2323701. Related parties Royal Philharmonic Orchestra Ltd is an independently cor)trolled but connected charlty registered 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 10. The Trust has also purchased shares in Royal Philharmonic Orchestra Ltd from six Members of the Orchestra on their departure from the Orchestra and sold shares to fovr Members leading to a net increase in the shares in Royal Philharmonic Orchestra Ltd owned by the Trust of 200 share5 Wlth a value of £2,000, as shown in note 7. As Royal Philharmonic Orchestra Ltd has refunded the relevant members for their shares and received the contribution for shares from the new Members. the share ownership changes increase the balance owed by the Tnjst to Royal Philharmonic Orchestra Ltd at the prior year end by the same amount, as explained in note 8. 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 live5. The Trustees can 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 Wales. 3 |Page
The Royal Philharmonit Orchestra Trust Trustees, Report and Financial Statements for the Year ended 5 April 2024 Governance The Trustees during the year to S April 2024 and up to the date of this report a. Sir Peter Ellwood Ichair) John Bimson Charles Fairweather Matthew Knight Ireslgned 30 May 20241 Andrew Storey (appointed 30 May 20241 Achievements and Perforniance During the year, the Trust has continued to rent its freehold property to the Royal Philharmonic Orchestra. Financlal Review The results for the year to 5 April 2024 and the preceding financial year are Set out in the Statement of Financial Activities on page 7. Total income for the year was £118,427 12023 £108,000) comprising rent received from Royal Philharmonic Orchestra Ltd and £10,427 of bank interest. The Trustees are building reserves in order to be able to refurbish and maintain the Trusys freehold propeity at a future date and continue to support the work of the Royal Philharmonic Orchestra. The surplus in the year, after total costs of £2,140. was £116,28712023 - £105,595). Unrestricted reserves of £954,663 at 5 April 202412023 £838,3761 include £470,585 repre5enling the cost of the freehold property owned by the Trust. Future plans The Trust has been notified by Royal Philharmonic Orchestra Ltd IRPOI that it will vacate the Trust's freehold property after March 2025. The property is being marketed and it is anticipated that the premises will continue to be occupied after March 2025, either by RPO on a rolling monthly lease, or new tenant or a new owner. Costs in the next two financial years are forecast to be higher than in recent years due to legal and professional costs associated with marketing and leasing or selling the property. In the event of a sale, the Trust intend5 to reinvest any proceeds in income generatin8 assets, including property. After taking into account foreseeable operational needs and financial risks, the Trust plans to donate surplus income to achieve its charitable p¥Jrpose of the advancement of musical education of mankind and in particular, supporting the work of the Royal Philharmonic Orchestra.
The Royal Philharmonic Orchestra Trust Trustees, Report and Financial Staternents for the Year ended 5 April 2024 Employees and volunteer5 The Trust had no employees and no volunteer5 Other than the Trustees in 2023. The Trustees were not remunerated for their services and no expenses were reimbursed. ststement of Trustees. Responslbllltles The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accountlng Practice). In preparing these financial statements, the Trustees are required to.. Prepare financial statements for each financial yearwhich give a true and fairview of the state of the affairs of the Tru5t- Select suitable accounting policies and then apply them consistently,. Observe the methods and principles in the Charities SORP. Make judgements and estimates that are reasonable and prudent; State whether applicable UK Accountln8 Standards have been followed, subject to any material departures disclosed and explained in the financial Statements; Prepare the financial statements on the going concern ba515 unless it is inappropriate to presume that the Trust will continue in operation. The Trustees are responsible for keeping proper accounting records that di5c105e with reasonable accurary at any time the financial position of the Trust. They are also responslble for safeguarding the assets 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 26 September2024
The Royal Philham)onic Orchestra Trust Trustees. Report and Financial Statements for the Year ended 5 April 2024 Independent examinerfs report to the Trustees of The Royal Phllharmonic Orchestra Trust I report to the Trustees on my examlnation of the accounts the Royal Philhamionic Orchestra Trust Ithe Trustl for the year ended 5 April 2024. Responsibilities and basis of report As the charity Trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirement5 of the Charities Att 20111.the ACV'I. I report in respect of my examination of the Trust's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Direction5 given by the Charity Commission under 5edion 1451Sllbl of the Act. Independent examinerfs ststement I have completed my examination. I confirm that no material matters have come to my attention in connection wtth the examination giving me cause to belleve that in any material respect: l. Accounting records were not kept in respett 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 IActounts and Report51 Regulations 2CX)8 other than any requirement that the accounts give a true and fair view, which is not a matter considered a5 part of an independent examination. . Departure from the 2008 Regulatlons l understand that the financial statement5 have been prepared to give a 'true and fair, view, and have departed from the Charities (Accounts 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 Charities: Statement of Recommended Practite effective from l April 2005 ISORP 20051. which is referred to in the regulations, but has since been withdrawn,. Con¢luslon 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: Charles Ssempiiia, FCA NFP Accountants Ltd rd 3 Floor, 86-90 Paul Street, London EC2A 4NE Date.. 0q/i,1/È
The Royal Philharmonic Orchestra Trust Trustees, Report and Financial Statements for the Year ended 5 April 2024 Staternent of Financial Activitles for the year ended 5 Aprll 2024 Unrestricted and Total Funds Year to 5 April 2024 Unrestricted and Total Funds Year to S April 2023 Note Income from Charitable Activities Investment income 108,0 IOA27 108,000 Total Income 118,427 108.000 Expendlture on Charitable Activities 2,140 2.405 Total Expenditure 2.140 2,405 Net Income for the year 116,287 105,595 Unrestricted and total funds brought forward Unrestricted and total funds carried forward 838,376 732,781 954.663 838,376 There were no recognised gains and1055e5 in the current or preceding financial year other than those dealt with in the Statement of Financial Activitie5. All income and expenditure relates to continuing activities. The notes on pages 9 to 12 fom part of these financial statements.
The Royal Philharmonic Orchestra Trust Trustees, Report and Firbancial Statements for the Year ended 5 April 2024 Balance Sheet as at 5 Aprll 2024 Total Funds As at 5 April 2024 Total Funds As at 5 April 2023 Note Fixed Assets Tangible Fixed Assets 470,585 470,585 Total Flxed Assets 470,585 470,585 Current Assets Investments Cash at barbk and in hand 455.677 58,325 300,IYX) 94,715 Total Current A55et5 514,002 394,715 Creditors . Amounts falling due within one year (29,924) 126,9241 Net Current Assets 484,078 367,791 Total A55ets less Current liabilities 954,661 838,376 Net Assets 954,663 838,376 Funds Unrestrlcted Funds 954,663 838.376 Total Funds 954.663 838,376 The notes on pages 9 to 12 form part of these finantial statements. Approved by the Trustees and authorised for issue on 26 September 2024. Peter Ellwood Chair
The Royal Philharmonic Orchestra Trust Trustees, Report and Financial Statements for the Year ended 5 April 2024 l. Notes to the Financlal Statements for the year ended 5 Aprll Z024 Accounting conventlon 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 {"the Trust") is a public benefit entity for the purposes of FRS 102 and a registered charity- Its financial statements are therefore also prepared in accordance with the "Statement of Recommended Practice applicable to charities preparing their accounts in accordante with FRS 102. (Charities SORP IFRS 10211. The financial statement5 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 statements are prepared in sterling, the functional currency of the Trust. Monetary amounts are rounded to the nearest pound. b. Going concern The Tru5tee5 have assessed whether the use of the going concern basls of preparlng the accounts is appropriate and have considered possible events or conditlons that might cast significant doubt on the ability of the Trust to continue as a going concem. The Trustees have made this assessment for a period of at least 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 IRPOI, the current tenant of the property owned by the Trust up until March 2025 when the Orchestra's lease ends. The Trust is negotiating a rolling monthly lease extension, until summer 2025 with the RPO. The Trust is currently marketing the property and it Is anticipated that the property will continue to be occupied after summer 2025. The Trust has built its funds balance to be able to weather a period without tenant and to refurbish the property when it is vacant. The Trustees are confident that income will exceed cost commitments for 2025 and for the foreseeable future, other than the years of transition to a new tenancy or property sale, when a sustalnable proportion of the funds balances may be utilised. Significant accounting estimates and judgements In preparing financial 5tatement5 It is necessary to make Certain judgement5. estimates and assumptions that affect the amount5 recognised in the financial statements. The treatment of the property owned by the RPO Trust is considered by the Trustees to have the most significant effect on amounts reco8nised in the financial statements. The property, 16 Clerkenwell Green, is recognised in the financial statements as a tangible fixed asset, because it Is rented to a related charity. It is recognised at cost and has not been depreciated because it has retained it5 economic value at the end of each financial year.
The Royal Philhamionic Orchestra Trust Trustees, Report and Financial Statements for the Year ended 5 April 2024 l. Notes to the Financial Statements for the year ended 5 April 20241contlnuedl d. Income Income comprises rent from ié Clerkenwell Green and interest on bank deposits. Income is CogniSed 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, including maintaining Trust deeds and other compliance. f. Tangible Fixed Assets The Trusys Tangible Fixed Asset is an office rental property 16 Clerkenwell Green, London. It is recognised at cost and not depreciated, because 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 equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with maturities of three months or less. h. Financial Inslruments The Trust ha5 elected to apply the provisions of SectSon 11 'Basic Financial Instruments, 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 assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneouslv. All debtor and creditor balances are considered to be basic financial Instruments under FRS 102. Investments Investments include a minority shareholding In Royal Philhamionic Orchestra Limited and fixed term bank deposit5 of more than three months. Shares in Royal Phllharmonic Orchestra Limited are available for sale to new Orchestra Members. Shares are purchased from Orchestra Members when they leave the Orchestra. Contributions from new Royal Philharmonic Orchestra Members for shares are collected by Royal Philharmonic Orchestra Limited and recognised a5 receivable from Royal Philharmonic Orchestra Limited when the full amount required to purchase a Memberfs shareholdlng of 100 £10 shares has been contributed and the share certificate issued. Contributions are repaid to Members when they leave, by Royal Philharmonic Orchestra Limited and the Trust recognises the amount as refundable to Royal Philharmonic Orchestra Limited. 10 |Page
The Royal Philharmonic Orchestra Trust Trustees, Report and Financial Statements for the Year ended 5 April 2024 Notes to the financlal statements for the year ended 5 Aprll 2024 Icontlnued) 2. Income from Charitsble Activitie5 Income from Charitable Activitles in the year ended 5 April 2024 and 2023 is rent charged to Royal Philharmonic Orchestra Limited. 3. Investment Income Bank interest of £10,427 was earned in 2024. In 2023 no interest was earned as no fixed term bank deposit reached maturity in the year. 4. Independent Examinerfs Fee Expenditure is stated after charging the Independent Examinerfs fee of £1.04012023- £1,140). 5. ExPendIre on Charltable Actlvltles Expenditure in the year ended 5 April 2024 is £2.140 comprising legal, other professional fees and bank charges. In 2023, expenditure of £1,020 was the Independent Examinerfs fee for the financial year of £1,140, net of a £120 reduction in the Independent Examinerfs fee charged for the previous year (note 41. 6. Tanglble Flxed 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 2024 and 2023. 7. Inve5tments- current asset5 As at 5 April 2024 As at 5 April 2023 Fixed term bank deposit Shares in Royal Philhamionic Orchestra Ltd 447,677 294,0 6,IK)O Totsl IDve5tments- current assets 455.677 3.000 11 |Page
The Royal Philharmonic Orchestra Trust Trustees, Report and Financial Staiements for the Year ended 5 April 2024 Notes to the financial statements for the year ended 5 April 2024 Icontlnued) 8. Credltors due In less than one year As at 5 April 2024 As at 5 April 2023 Deferred rental Income Payable to Royal Philharmonic Orchestra Ltd Accruals 23,439 4,424 2,060 23,439 2.345 1.140 Total Creditors due Sn less ihan one year 29,924 26,924 Deferred rental income in each year represents the portion of the rent received for the 2S March to 24 June quarter. which is attributable to the period after S April. The amount due to Royal Philharmonic Orchestra Ltd comprises £2,000 for net purchases of shares in Royal Philharmonic Orchestra Ltd not transferred at the year end and fees paid for by RPO Limited on behalf of the Trust. Accrua15 in 2024 are for legal fees and the Independent Examinerf5 fee, whereas accruals in 2023 represented only the Independent Examinerfs fee. 9. Funds The Funds held by the Trust at both 5 April 2024 an¢J 5 April 2023 are unrestricted. 10. Operating Leases The Trust has future operating lease rental income arising as follows.. As at 5 April 2024 As at 5 April 2023 Operating lease rentals arisin8 in-. Le55 than one year Two to five years 81,1)00 108,000 81,000 81,000 189,(KJO The Trust has leased 16 Clerkenwell Green to the Royal Philharmonic Orchestra Limited Since August 1986. For several years prior to 2020. it offered a rent waiver to the Orchestra. Rent, at a current market rate was reinstated in December 2019. The current lease is expected to end in March 2025. The Trust is negotiatinE a rolllng monthly lease extension until summer 2025 with the RPO. Marketing is underway to secure income beyond summer 2025, as set out in the Future Plans section of the Trustees. Report on page 4. 11. Capit31 commltments The Trust had no capital commitments at 5 April 2024 or 5 April 2023. 12 |Page