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2022-03-31-accounts

Year ended 31 March 2022

Contents

Reference and administrative information ......................... 3 Chair’s Report ................................................................................ 4 Chief Executive’s Report ............................................................ 5 Trustees’ Annual Report ............................................................ 6 Independent Auditor’s Report ..............................................11 Statement of Financial Activities .........................................14 Balance Sheet ...............................................................................15 Statement of Cash Flows ........................................................16 Notes to the Financial Statements ......................................17

ISTD Annual Report and Financial statements year ended 31 March 2022 1

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2 ISTD Annual Report and Financial statements year ended 31 March 2022
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Reference and administrative information

Charity name: Imperial Society of Teachers of Dancing Charity registration number: 250397 Company registration number: 392978 Registered office and operational address: 22-26 Paul Street, London EC2A 4QE

Council Members (Trustees)

Mr Chris Hocking (Chair) (1,2) from 18 November 2020, on leave of absence from 4 June 2021, resigned 29 June 2021 Mr Michael Elliott (Chair) (1,2) from 17 November 2021

Ms Nafisah Baba from 1 June 2021, resigned 23 March 2022 Ms Lynn Chandler (1) Mr Tom Hobden (2) Mr Jeremy Kean (1) Ms Karen King (1) Mr Keith-Derrick Randolph Ms Erin Sanchez (Co-Vice Chair) (2,3) resigned 17 November 2021 Mr Sho Shibata Miss Elisabeth Swan (2) Mr Frederick Way (Co-Vice Chair) (2,3) Ms Kathryn Williams (1) from 1 June 2021 Ms Leanne Kirkham (Co-Vice Chair) (2) from 1 June 2021

Key for above

Also member of the Finance and Audit Committee (1) Also member of the Nomination and Remuneration Committee (2) Acting Co-Chairs from 4 June 2021 (3)

Key management personnel

Chief Executive

Senior Management

Director of Finance and Operations Director of Examinations Director of Education Director of Dance Director of Membership and Communications

Auditors

Moore Kingston Smith LLP, 9 Appold Street, London EC2A 2AP

Bankers

National Westminster Bank, Moorgate Branch, PO Box 712, Moorgate, London EC2M 6UR

Solicitors

Charles Russell and Speechlys, 5 Fleet Place, London EC4M 7RD

Investment Managers

CCLA, Senator House, 85 Queen Victoria Street, London EC4V 4ET

The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ published in March 2015, applicable law and the Society’s governing document.

ISTD Annual Report and Financial statements year ended 31 March 2022 3

Chair’s Report

The Society worked hard during the pandemic to help our members navigate extremely challenging circumstances and to manage change to its own planning, finance and operations. This change in planning, finance and operations was granted with the receipt of a Cultural Recovery Fund of £426,000, for the period April-June 2021. This enabled the Society to undertake a strategic review; offer an intensive training programme to upskill teachers to reach new audiences; convene an industry-wide racial diversity symposium; and rebuild the Society’s reserves.

Our strategic review engaged people from across and beyond the Society in a collaborative approach to strategic planning, including a membership survey, a series of focus group discussions with Faculty Committee members, Members, Students and external practitioners. There were also individual conversations with a cross-section of people who interact with the Society, and with some that don't currently connect with the organisation.

The process started with consideration of the big picture - our charitable purpose and the fact that that we are working in a sector that is in crisis following the pandemic and continuing reductions in funding for arts education. Its conclusions clearly recognised the post pandemic impact on our members’ businesses and the disproportionate loss of opportunity for young people from disadvantaged backgrounds.

Think Tanks were established to focus on gender and LGBT, racial diversity, and disability inclusion with contributions from across and beyond the Society. This provided vital opportunities to promote diversity and inclusion, overcome roadblocks, and enhance openness, dialogue and deconstruction. The key outcomes included training for staff and resource materials, housed in the Diversity and Inclusion hub on our website, and a ‘Talking Dance – Improving Racial Equity’ symposium. The latter involved leading organisations bbodance, International Dance Teachers Association (IDTA), the TIRED Movement and Royal Academy of Dance (RAD) in joining ISTD to discuss the roadblocks to extending diversity in dance education and training, and how these can be dismantled at every level of dance teaching.

Overall, our strategic review clearly demonstrated the urgent need for a robust strategy to assist the Society and its members to navigate uncertain and rapidly changing social and economic times. It highlighted new opportunities and the need to urgently address social injustice, the impact of technological innovation and climate change, and the importance of the health and wellbeing of individuals, communities and future generations.

Three overarching key priorities emerged. Firstly, the need to prioritise the business recovery of the Society and its members. Secondly, to become more inclusive and nurture the next generation, and finally, to continue to uphold the Society’s commitment to excellence through maintaining its reputation for providing a “gold standard” in dance education. Action on these three fronts will drive more learners to our members’ schools to the benefit of their business recovery, increase participation in our progressive training and examinations, and grow a diverse and vibrant membership for the Society.

To be invited to join the Society as its Chair to help realise this strategy was an immense honour and I am in awe of the achievements of the Board of Trustees (Council) and the staff team, under the exceptional leadership of Ginny Brown, in completing the strategic review and driving change in the most challenging of times. Their combined determination, dedication, passion, knowledge, skill, resilience and inspiration provide assurance and confidence that the Society will achieve its goals to the benefit of its members and dance education more widely.

Michael Elliott Chair

4 ISTD Annual Report and Financial statements year ended 31 March 2022

Chief Executive’s Report

The 2021/22 year has been another challenging period for the Society and our members as we continued to navigate the impact of the pandemic. The effect on our members’ livelihoods has been at the front of our minds and we responded by offering a 3-month extension to the membership year; providing 31 free member activities during 2021/22 and granting bursaries to support teachers with gaining their initial and higher teaching qualifications. Funds were also awarded to support gifted and talented students and their teachers to further their training. Despite the challenges of the pandemic, we were delighted to retain 94% of our current membership, reinstate a further 227 lapsed members and recruit 320 new members – resulting in a total membership of 5,740 on 31 March 2022.

In early 2021, we launched the ‘Inspirational Spaces to Dance’ Challenge to support teachers with keeping their students engaged online, whilst face-face dance classes were not permissible. This resulted in 484 entries from 6 countries. We delivered digital, remote examinations whilst travel and social distancing measures were in place, returning to ‘live’ examinations in the UK from summer 2021 onwards. In total we conducted 68,542 examinations during 2021/22. Additionally, over 1700 students participated in an online competition and 300 dancers took part in our first Ballroom and Latin medallist competition.

Teachers clearly utilised lockdown periods to continue their professional development. 667 teachers completed an initial or higher teaching qualification during 2021/22, with a further 6,466 delegates attending CPD courses. Notable events included:

Whilst responding to the short-term challenges was a clear priority, we also continued to invest in future development to ensure that we emerge from the pandemic posed to make a significant contribution to cultural education. We supported members to apply the Department of Education’s Code of Conduct for Out of School Settings with a series of free webinars, advice and guidance in our Raising Standards website hub and the introduction of compulsory DBS checks (or country equivalent). We also established several Think Tanks to support us with improving Equity, Diversity and Inclusion across the Society. And we were delighted to complete the refurbishment of the Society’s headquarters in Shoreditch, London. This has enhanced the safety, aesthetic, functionality, energy efficiency and value of our premises. The building now boasts a dance studio with adjoining refreshment and rest area, a member lounge and several new meeting spaces. The refurbished building is also more space efficient, releasing two floors for rental – thus generating additional income with which to enhance our charitable work to support dance and our members.

None of these achievements could have been possible without the experienced and hard-working ISTD staff. The time and energy each member of staff dedicates to the running of the Society is greatly appreciated - from producing an exam certificate or working in accounts, to telling members’ stories through marketing and the Dance magazine. But most importantly, our achievements this year could not have been possible without the excellence, creativity, dedication, and passion of ISTD’s members. Each of whom has given so much to their students and their communities.

During 2022/23 we will continue to support our members to re-build financially sustainable businesses through business guidance and a national advocacy campaign. We will also provide members with training and tools to reach underrepresented groups and seek funding for research into broadening access to dance and the Society so that, together, we continue to deliver the charity’s purpose of educating the public in the art of dancing.

To deliver these charitable ambitions, we will build a financially sustainable business model for growth by developing a targeted international growth strategy and establishing two subsidiary companies:

Sincere thanks to our Chair, Michael Elliott, for generously utilising his extensive professional knowledge to guide the future development of the Society, and to the Board of Trustees for their continued support and invaluable contributions.

Ginny Brown Chief Executive

ISTD Annual Report and Financial statements year ended 31 March 2022 5

Trustees’ Annual Report year ended 31 March 2022

Structure, governance and management

Governing Document

The Imperial Society of Teachers of Dancing is a charitable company limited by guarantee, incorporated on 5 February 1945 and registered as a charity on 6 January 1969. The company was established under a memorandum of association, which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up, members are required to contribute an amount not exceeding £5 each.

Recruitment and Appointment of Council

The directors of the company are also charity trustees for the purpose of charity law. Members of Council are elected by the ISTD’s fully registered members at the AGM on the basis of their pre-eminence in the world of dance or their relevant business or education experience. Elected Trustees serve for 3 years, and may be re-elected twice (making nine years the maximum term as Trustee). In addition, the Council may fill a casual vacancy and such a Trustee would stand for election at the next AGM. The Council may also appoint up to two Trustees for a maximum period of three years. The Council has responsibility for the financial and legal direction of the Society. In this it is aided by its sub-committees, the Finance and Audit Committee and the Nomination and Remuneration Committee.

Trustee Induction and Training

Many trustees are familiar with the practical work of the charity having had prior involvement of work in the dance, arts and education industries. Additionally, new trustees are invited and encouraged to attend events organised by the Society to familiarise themselves with the charity and the context within which it operates. The induction and training covers:

Risk management

The Trustees have responsibility for risk management. Risks are identified by the management team and reviewed, assessed and appropriate action incorporated as part of the annual budget and planning process. Risk is an integral part of the budget and business plan approved by the Trustees.

The impact of Covid-19 has been considered on the charity’s future plans and budgeting processes and the effect of the pandemic will continue to be a significant risk into the March 2023 year end. The Society maintained a hybrid delivery model throughout the 2021/22 year, with remote delivery of examinations, teachers’ courses and student events, supplemented by return to ‘live’ activity as restrictions were lifted. The Society also benefited from a Cultural Recovery Fund Grant which supported the organisation’s transition back to a viable and sustainable operating model during April-June 2021. The grant was used to re-inflate reserves and to help re-establish a financially sustainable business model by undertaking a strategic review / planning process and upskilling teachers to diversify their classes.

The principal risks and uncertainties facing the Society are:

6 ISTD Annual Report and Financial statements year ended 31 March 2022

A series of systems operate to identify and mitigate risk:

Organisational structure

The Imperial Society of Teachers of Dancing has a Council of Trustees who meet four or five times a year and are responsible for the strategic direction and policy of the charity. The Council consists of people from a variety of professional backgrounds relevant to the work of the charity.

Day to day responsibility for the provision of the services is delegated to the Chief Executive and senior management, ensuring that the charity delivers the services and strategies specified against a set of key performance indicators. Senior management have responsibility for the day to day operational management of ISTD.

The Finance and Audit Committee oversees the preparation of the budget, monitors the financial performance of the Society, reviews the Society’s risks, monitors the investment portfolio, and ensures that proper audited accounts are produced showing a true and fair view of the financial position.

The Nomination and Remuneration Committee is responsible for reviewing the size, structure and composition of the Council and its committees and advising on an overall framework and broad policy for remuneration of ISTD staff.

Key Management and Pay Policy for Senior Staff

The Board of Trustees and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis. Remuneration has been paid to two of the trustees, in accordance with the Articles of Association, for professional dance and other services provided to the charity. Details of trustee remuneration and expenses are disclosed in note 8 to the accounts. Such payments are carefully controlled and monitored under the Society’s Conflict of Interest policy.

The pay of senior staff is reviewed annually and normally increased in accordance with the Consumer Price Index.

Related parties

The Cecchetti Society Trust (charity number 275548) is a separate charity set up to advance the education of the public in the art of classical ballet.

Governance

Following an independent Governance review in 2018, the Trustees annually:

Fundraising

The Society had no fundraising activities requiring disclosure under S162A of the Charities Act 2011.

ISTD Annual Report and Financial statements year ended 31 March 2022 7

Objectives and activities

Objectives

The Society is an educational charity whose purpose is to promote the teaching of dancing. Its objectives are stated broadly in its Articles of Association, ‘to educate the public in the art of dancing in all its forms’. To achieve this, the Society works in four main ways:

Major activities

The ISTD offers dance qualifications for learners of all ages and abilities throughout the world. These examinations are provided through syllabi in multiple dance genres which are taught by teachers who have qualified with the ISTD to enter candidates for examinations. Towards this end the Society:

Public benefit

The Trustees confirm that they complied with the duty in Section 4 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit’. The Trustees have assessed the activities of the Society in relation to the public benefit requirement and consider that the activities meet the two main principles of public benefit, that the benefits are identifiable and are related to the aims of the Society, and that the public are the beneficiaries and that there is no significant exclusion as to who can benefit.

Achievements and performance

8 ISTD Annual Report and Financial statements year ended 31 March 2022

Financial review

Financial Performance

The year 2021/22 reported a 12-month period following a change to the accounting period in the prior year (2020/21) where the figures were reported over a 15-month period.

Income for the year was £4,841k, an increase of £1,528k on the prior period’s income of £3,313k. Expenditure was £5,171k against prior period expenditure of £7,172k and this, together with an investment gain of £199k (2021 - £88k) produced a small deficit of £132k (2021 - deficit of £3,737k).

The year saw a transition from remote activities and back to face-to-face exams which began the return to normal activities following the pandemic.

Examinations expenditure was £1,924k, 1% less than the prior period after adjusting for the 15-month period, Education and Training expenditure of £742k was 16% less than the prior period after adjusting for the 15-month period and Marketing and Membership costs were £815k, a 4% increase on the prior period after adjusting for the 15-month period.

The total funds carried forward are £15,325k against £15,456k as at 31 March 2021. Restricted funds of just £7k were received and these were all spent in the year.

Investment Policy, powers and performance

The Society’s investments are split between CCLA’s COIF Charities Investment Fund, valued at £1,395k (2021: £1,284k) and CCLA’s COIF Charities Ethical Investment Fund valued at £1,605k (2021: £917k). The Society increased investment in the Charities Ethical Investment Fund to build financial resilience and improve investment income. Both Funds fit the Society’s investment objective – to provide a long-term total return comprising growth in capital and income. The Ethical Fund has a wide range of ethical restrictions and is advised by an ethical advisory group that assists in the development of the Fund’s client driven ethical investment policy.

Reserves Policy

At 31 March 2022 ISTD held total funds of £15.2k including cash balances of £2.2m and investments of £3m. Of these total funds, c.£14m are designated funds as detailed in note 20 of the financial statements.

The Society received restricted income from the Cecchetti Society Trust Fund which was spent to provide scholarships and bursaries for Summer schools.

The Society’s free reserves for the year 2021/22 were c.£1.33m. The Trustees consider that a target of free reserves between £1m and £2m is necessary to provide for financial risks in the current environment, this is based on around three to six months of unrestricted expenditure. The Trustees consider this will provide sufficient funds to enable the Society to respond to unforeseen events which might cause a down-turn in predicted income.

The Trustees have assessed the impact of COVID-19 and reviewed financial and cashflow forecasts for 2022/23 and concluded that is it appropriate to prepare financial statements on a going concern basis.

During the financial year 2022/23 the Trustees intend to carry out a detailed review of the Designated funds and will be considering a more risk-based approach to the free reserves requirements.

Future plans

During 2022/23 the Society will start implementing its new 5-year strategy, focused on three key drivers:

ISTD Annual Report and Financial statements year ended 31 March 2022 9

These activities will be underpinned by strategies to enable:

Statement of Trustees’ responsibilities

The trustees (who are also directors of the Imperial Society of Teachers of Dancing for the purposes of company law) are responsible for preparing the annual report and financial statements in accordance with applicable law and UK accounting standards (generally accepted accounting principles).

Company law requires the trustees to prepare financial statements which give a true and fair view of the state of affairs of the charitable company and incoming resources and application of resources, including income and expenditure, for the reporting period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Council on 16 September 2022 and signed on its behalf by

Michael Elliott Chair

10 ISTD Annual Report and Financial statements year ended 31 March 2022

Independent auditor’s report to the members and trustees of the Imperial Society of Teachers of Dancing

Opinion

We have audited the financial statements of The Imperial Society of Teachers of Dancing for the year ended 31 March 2022 which comprise the Statement of Financial Activities (incorporating the Summary Income and Expenditure Account), the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Emphasis of Matter – subject to further verification

We draw attention to note 18 of the financial statements, which describes the circumstances in which a possible liability to the charitable company may arise. Our opinion is not modified in this respect.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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 is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements 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 report in this regard.

ISTD Annual Report and Financial statements year ended 31 March 2022 11

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 12, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the 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 assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

12 ISTD Annual Report and Financial statements year ended 31 March 2022

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the charitable company’s members, 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 company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

11 October 2022

Neil Finlayson

Senior Statutory Auditor – for and on behalf of Moore Kingston Smith LLP, Statutory Auditor 9 Appold Street, London, EC2A 2AP

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

ISTD Annual Report and Financial statements year ended 31 March 2022 13

Statement of financial activities year ended 31 March 2022

Unrestricted Designated Restricted Year ended 15 months to
31-Mar-22 31-Mar-21
Total Total
Funds Funds Funds Funds Funds
Note £000s £000s £000s £000s £000s
Income
Income from charitable activities
(Examinations, Courses,
Subscriptions, Congress) 4 4,096 - - 4,096 2,917
Investment income 5 90 - - 90 87
Other income 6 648 - 7 655 309
Total income 4,833 - 7 4,841 3,313
Expenditure
Expenditure on charitable activities 7 (4,757) (514) (7) (5,278) (7,172)
Total expenditure (4,757) (514) (7) (5,278) (7,172)
Net income/ (expenditure) before
other recognised gains and losses 76 (514) - (438) (3,859)
Currency exchange gain 0 - - 0 34
Investment gains 199 - - 199 88
Other recognised gains and losses 199 - - 199 122
Net income/(expenditure) 275 (514) - (239) (3,737)
Transfers between funds (24) 24 - 0 0
Net income/(expenditure) and net
movement in funds for the year 251 (490) - (239) (3,737)
Reconciliation of funds
Total funds brought forward 1,086 14,370 - 15,456 19,193
Total funds carried forward 19 1,337 13,880 - 15,217 15,456

All incoming resources and resources expended derive from continuing operations. The statement of financial activities includes all gains and losses recognised in the year.

14 ISTD Annual Report and Financial statements year ended 31 March 2022

Balance sheet

31 March 2022

Balance sheet
31 March 2022
2022 2021
Note £000s £000s
Fixed assets
Tangible fxed assets 11 10,169 10,276
Intangible assets 12 245 457
Investments 13 3,000 2,201
Total fxed assets 13,414 12,933
Current assets
Stock 14 59 44
Debtors 15 360 297
Cash at bank and in hand 2,245 2,752
Total current assets 2,664 3,093
Liabilities
Creditors: falling due within one year 16 861 570
Net current assets 1,803 2,523
Net assets 15,217 15,456
Funds
Unrestricted funds: General 1,337 1,086
Designated 13,880 14,370
Total funds 19 15,217 15,456

Approved by the Council on 16 September 2022 and signed on its behalf by

Michael Elliott

Chair

Company number 00392978

ISTD Annual Report and Financial statements year ended 31 March 2022 15

Statement of cashflows year ended 31 March 2022

Year ended 15 months to
31-Mar-22 31-Mar-21
Note £000s £000s
Net cash generated by/ (used in) operations 26 145 (3,915)
Cash fows from investing activities
Dividends received 78 56
Interest received 13 31
Purchase of fxed assets (143) (2,141)
Purchase of investments (600) (900)
Cash used in investing activities (652) (2,954)
Change in cash and cash equivalents
in the year/period (507) (6,869)
Cash and cash equivalents at the beginning
of the year/period 2,752 9,621
Cash and cash equivalents at 31 March 2,245 2,752
Analysis of changes in net debt At 1 April 2021 Cash outfow At 31 March 2022
Cash and cash equivalents 2,752 (507) 2,245
Loans falling due within one year - - -
Loans falling due after more than one year - - -
Total 2,752 (507) 2,245

16 ISTD Annual Report and Financial statements year ended 31 March 2022

Notes to the financial statements year ended 31 March 2022

1 Charity information

The Imperial Society of Teachers of Dancing (company number 392978) is a private company limited by guarantee incorporated in England and Wales under the Companies Act 2006. The registered office is 22-26 Paul Street, London EC2A 4QE.

2 Accounting policies

The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a Basis of preparation

The Financial Statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and Companies Act 2006. The Imperial Society of Teachers of Dancing meets the definition of a public benefit entity under FRS 102.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). The trustees have assessed whether the use of the going concern basis is appropriate in preparing these financial statements and have considered possible events or conditions that may cast doubt on the ability of the Society to continue as a going concern. The trustees have made the assessment for a period of at least one year from the date of approval of the financial statements. In particular, Trustees have considered the Society’s forecasts and projections and have taken account of the volatility of charitable income and activity in line of COVID-19 outbreak. After due consideration, the trustees have concluded that there is a reasonable expectation that the charity has adequate reserves to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

b Income

Income from charitable activities represents the amounts (excluding value added tax) generated in the UK and overseas from examinations, subscriptions, courses, shop sales, advertising, congresses and corporate events. Other income includes faculty events, royalties, commission and grants. Income is accounted for when the Charity is entitled to the income and the amount can be quantified with reasonable accuracy.

c Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank.

d Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the Charity. Designated funds are unrestricted funds which the trustees have set aside for a specific purpose.

e Expenditure

All expenditure is accounted for on an accruals basis and includes irrecoverable VAT. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of resources. Costs are incurred in delivering charitable activities and services to its beneficiaries.

Governance costs are incurred in satisfying the Charity’s constitutional and statutory requirements including strategic management.

f Allocation of support costs

Support costs are those functions that assist the delivery of charitable activities. Support costs include Premises, IT, administration and governance costs which support charitable activities. These costs have been apportioned between charitable activities and the allocation may be found in a table in note 7(b).

g Pension costs

The Charity administers a defined contribution pension scheme. Assets of the scheme are held separately from those of the Charity in an independently administered fund. The amount charged to the Income and Expenditure Account represents the contributions payable for the year.

h Employee benefits

The costs of short term employee benefits are recognised as a liability and an expense. A liability is recognised to the extent of any unused holiday pay entitlement which has accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of holiday entitlement accrued at the balance sheet date.

ISTD Annual Report and Financial statements year ended 31 March 2022 17

i Foreign currencies

Transactions in foreign currencies are recorded at the rate of exchange ruling on date of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the revaluation at year-end of monetary assets and liabilities denominated in foreign currencies are recognised in gain or loss. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange at Balance Sheet date.

j Fixed assets and depreciation

Land and buildings are held at valuation, with external valuations carried out every 5 years. Market surveys and indices are used to assess any impairment.

For all other categories of fixed assets, ISTD applies a threshold of £10K for capitalising any single fixed asset (i.e., it does not group assets). Depreciation or amortisation is calculated to write off cost less any estimated residual value in equal amounts over estimated useful economic life as follows:-

Furniture and equipment 10% of cost (10 year life)
Computers and IT 25% of cost (4 year life)
Software development 20% or 25% of cost (4 or 5 year life)

k Investments

Investments are disclosed at market value at year end. Gains or losses on disposal or revaluation of investments are credited or charged to the Statement of Financial Activities.

l Stocks

Stocks are stated at the lower of cost and net realisable value. Where the assets are impaired, the carrying amount is reduced to its selling prices less any costs of sale. The impairment loss is recognised immediately in profit or loss.

m Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

n Creditors and provisions

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

o Taxation

The Society has charitable status and accordingly is not liable to corporation tax.

3 Critical accounting judgements and key sources of estimation uncertainty

In preparing these financial statements, it is necessary to make certain judgments, estimates and assumptions that affect the amounts recognised in the financial statements. The following judgments and estimates are considered by Trustees to have significance for amounts recognised in the financial statements:

Key estimates:

Fixed assets (see notes 11 and 12)

Fixed assets (excluding land and buildings) are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors.

4 Income from charitable activities
4 Income from charitable activities Year ended 15 months to
31-Mar-22 31-Mar-21
£000s £000s
Examination income 3,095 1,820
Education and Training 192 379
Marketing and Membership 495 508
Shop sales 143 205
Customer services 171 4
4,096 2,917

All investment income is unrestricted.

18 ISTD Annual Report and Financial statements year ended 31 March 2022

5 Investment income Year ended 15 months to
31-Mar-22 31-Mar-21
£000s £000s
Income from listed investments 78 56
Bank interest received 13 31
90 87

All investment income is unrestricted.

6 Other income Year ended 15 months to
31-Mar-22 31-Mar-21
£000s £000s
Faculty events 88 83
Royalties received 9 12
Donation - 2
Arts Council grant - Cultural Recovery Fund 426 -
Coronavirus Job Retention Scheme grant 20 212
Rental income 81 -
Other operating income 31 -
655 309

Faculty events includes restricted income of £7,125 (2021-£9,768).

7 Expenditure

7 Expenditure
a) Charitable activities Direct costs Staff costs Overheads Support Year ended 15 months to
costs 31-Mar-22 31-Mar-21
Total Total
£000s £000s £000s £000s £000s £000s
Examinations 852 523 39 510 1,924 2,413
Education and Training 107 324 44 268 742 1,103
Marketing and Membership 78 341 95 302 815 977
Shop 88 0 0 0 88 132
Customer services 87 197 72 217 573 1,088
Faculties 136 399 152 394 1,081 1,390
International Development 50 4 0 0 54 68
Total 1,397 1,789 402 1,691 5,278 7,172
2020/21 1,171 3,374 687 1,940 7,172

Faculty expenditure includes £7,000 of expenditure from restricted funds (2021: £10,000) Faculty expenditure includes £160,000 on bursaries and awards (2021: £82,000).

ISTD Annual Report and Financial statements year ended 31 March 2022 19

7 Expenditure continued

b) SupportCostsAllocation Premises IT Finance Admin Governance Year ended 15 months to
31-Mar-22 31-Mar-21
Total Total
£000s £000s £000s £000s £000s £000s £000s
Examinations 71 51 118 236 34 510 604
Education and Training 37 27 62 124 18 268 311
Marketing and Membership 42 30 70 139 20 302 275
Shop 0 0 0 0 0 0 28
Customer Services 30 22 50 100 15 217 335
Faculties 55 39 91 182 26 394 386
Total 235 169 392 781 113 1,691 1,940
2020/21 225 137 90 1,439 49 1,940

Costs of Premises, IT, Finance, Administration and Governance have been allocated on the basis of full time equivalent staff in the departments supported Included in support costs are staff costs of £583,000 (2021 - £984,000).

c) Governance costs Year ended 15 months to
31-Mar-22 31-Mar-21
£ £
Audit fee - Moore Kingston Smith 21,510 19,489
Non audit fee - Moore Kingston Smith 18,626 17,942
Trustees expenses 237 2,532
Legal and professional fees 43,011 8,900
Staff costs 51,285 55,000
113,159 84,374

The audit fee excluding irrecoverable VAT for the year ended 31 March 2022 is £17,576 (2021-£16,350).

8 Remuneration and expenses
paid to Trustees		 Fees as
Examiner/
Assessor		 Expenses Year ended
31-Mar-22
Total		 15 months to
31-Mar-21
Total
£ £ £ £
Mr Jeremy Kean - 77 77 -
Ms Karen King 1,604 1,604 -
Ms Leanne Kirkham (Co-Vice Chair) - 68 68 -
Ms Erin Sanchez (Co-Vice Chair) - 50 50 -
Miss Elisabeth Swan 7,399 15 7,413 5,195
Mr Frederick Way (Co-Vice Chair) - 27 27 -
9,002 237 9,239 5,195

Remuneration paid to trustees in their capacity as examiners or assessors is within the Society’s Articles of Association which allow for trustees to provide professional dance and other related services to the charity for remuneration. These trustees are not involved in decisions setting their remuneration.

During the year ended 31 March 2022, 5 trustees (2021: 4 trustees) were re-imbursed expenses of £237 in total (2021: £1,889) for discharging trustee duties. Expenses incurred were for travel to trustee meetings and the Society’s events and activities.

20 ISTD Annual Report and Financial statements year ended 31 March 2022

9 Staf costs Year ended
31-Mar-22		 15 months to
31-Mar-21
£000s £000s
Wages and salaries 1,936 2,602
Temporary staff 118 209
Social security costs 191 261
Pension costs 116 160
Redundancy and severance 4 134
Staff life cover 7 8
2,372 3,374

During the year, redundancy and termination payments of £4,295 (2021 - £134,000) were made to one (2021 - nine) member of staff.

2022 2021
No. No.
Number of staff who received emoluments in the following ranges
£60,001-£70,000 4 1
£80,001-£90,000 1 -
£100,001-£110,000 1 1
Average number of staff employed during the year
(a period of 12 months). 60 60

Key management personnel of the Society comprise the Chief Executive and Senior Management. Total employee benefits of key management personnel were £528,412 (15 months to 31 March 2021 - £669,000) including pension constributions of £35,782 (15 months to 31 March 2021-£45,000).

10 Net income/ (expenditure) is stated after charging Year ended
31-Mar-22		 15 months to
31-Mar-21
£000s £000s
Depreciation 249 57
Amortisation 212 252
Loss on disposal of fxed assets - 53
Auditor’s remuneration for audit services 22 19

The audit fee excluding irrecoverable VAT for they earended 31 March 2022 is £17,576 (2021-£16,350).

ISTD Annual Report and Financial statements year ended 31 March 2022 21

11 Tangible fxed assets Freehold
properties		 Furniture and
equipment		 Computers
and IT		 Total
£000s £000s £000s £000s
Cost or valuation
At 1 April 2021 10,143 5 207 10,355
Additions 116 21 6 143
At 31 March 2022 10,259 26 213 10,498
Depreciation
At 1 April 2021 49 2 28 79
Charge for the year 200 2 47 249
At 31 March 2022 249 4 76 329
Net book value
At 31 March 2022 10,010 22 137 10,169
At 1 April 2021 10,094 3 179 10,276

Net book value of assets at 31 March 2022 are used for charitable purposes. The freehold property was revalued on 8 January 2019 by Carter Jonas LLP Property Surveyors at £8.2m based on potential rental income. The trustees have reviewed rental income of similar properties and do not consider that the value of the freehold property is impaired.

12 Intangible assets-software Examination
Administration		 Website Total
System
£000s £000s £000s
Cost
At 1 April 2021 927 106 1,033
At 31 March 2022 927 106 1,033
Amortisation
At 1 April 2021 556 20 576
Charge for year 185 26 212
At 31 March 2022 742 46 788
Net book value
At 31 March 2022 185 59 245
At 1 April 2021 371 86 457

22 ISTD Annual Report and Financial statements year ended 31 March 2022

13 Fixed asset investments 2022 2021
£000s £000s
At 1 April 2021 2,201 1,213
Additions 600 900
Unrealised gain 199 88
Realised gain/ (loss) - -
Valuation at 31 March 2022 3,000 2,201
Cash held for investment - -
3,000 2,201
Fixed asset investments consist of
CCLA COIF Charities Investment Fund 1,395 1,284
CCLA COIF Charities Ethical Investment Fund 1,605 917
Total 3,000 2,201
14 Stock 2022 2021
£000s £000s
Stock of goods for sale 59 44
15 Debtors 2022 2021
£000s £000s
Trade debtors 143 98
Taxation and social security 6 57
Other debtors 25 -
Prepayments and accrued income 185 142
360 297
16 Creditors: Amounts falling due within one year 2022
£000s		 2021
£000s
Trade creditors 215 152
Taxation and social security 52 53
Accruals and deferred income 450 326
Other creditors 36 16
Provision for bursary awards 109 -
Provision for extraordinary items - 23
861 570

ISTD Annual Report and Financial statements year ended 31 March 2022 23

17 Movement in deferred income 2022 2021
£000s £000s
Deferred income b/f 210 395
Utilised in year 210 395
Deferred to next year 341 210
Deferred income c/f 341 210

Deferred income is attributable to exam and membership fees received in advance.

18 Contingent liabilities

The Society made a voluntary disclosure to HMRC for a previously undisclosed liability, however professional advice is that no provision is required in the financial statements. Accordingly the trustees are satisfied that the contingent liability does not affect the ability of the Society to continue operating as a going concern.

19 Reconciliation and analysis of movement in funds

At Income Expenditure Other Gain/ Fund At
1 April recognised (loss) on transfer 31 March
2021 gains and property 2022
extraordinary revaluation
items
£ £ £ £ £ £ £
Year ended 31 March 2022
General funds 1,086,410 4,833,383 (4,757,244) 198,749 - (24,007) 1,337,291
Designated funds
Operational
Fixed Assets 10,780,183 - (461,121) - - - 10,319,062
Service developments 864,606 - - - - - 864,606
Risk Management
Strategy 2,356,666 - - - - - 2,356,666
Danceproms 25,561 - - - - - 25,561
ISTD Faculty events 313,853 - - - - - 313,853
ISTD Bursary Fund 28,874 - (52,881) - - 24,007
14,369,742 - (514,002) - - 24,007 13,879,748
Restricted funds
The Cecchetti Society - 7,125 (7,125) - - -
- 7,125 (7,125) - - -
Total funds 15,456,153 4,840,509 (5,278,372) 198,749 - - 15,217,038

Continued on page 25

24 ISTD Annual Report and Financial statements year ended 31 March 2022

At Income Expenditure Other Gain/
Fund		 At
1 January recognised (loss) on Transfer 31 March
2020 gains and property 2022
extraordinary revaluation
items
£ £ £ £ £ £ £
Period ended 31 March 2021
General funds 3,565,614 3,301,762 (5,958,761) 121,019 - 56,776 1,086,410
Designated funds
Operational
Fixed Assets 9,096,867 - (313,168) - - 1,996,483 10,780,183
Service developments 3,060,533 - (253,084) - - 1,942,843 864,606
Risk Management
Strategy 3,011,007 - (543,925) - - 110,416 2,356,666
Danceproms 25,561 - - - - - 25,561
ISTD Faculty events 313,853 - - - - - 313,853
ISTD Bursary Fund 119,329 - (90,456) - - 28,874
15,627,151 - (1,200,633) - - 56,776 14,369,742
Restricted funds
The Cecchetti Society - 9,768 (9,768) - - -
Patricia Prime Trust
Fund 1,889 738 (2,627) - - -
1,889 10,506 (12,395)
Total funds 19,194,654 3,312,268 (7,171,788) 121,019 - - 15,456,153
Designated funds Description of funds
Operational fxed assets Value attributed to the Society’s buildings and other fxed assets, primarily intangible
assets for exams administration and website softaware. Included in this fund is a
revaluation reserve of £7m.
Service developments Designated for developing the Society’s service delivery over the coming four years.
Risk Management Strategy Required to manage the Society’s risk exposure to potential liabilities which may
crystallise within fve years.
ISTD Faculty Events Funds Funds for specifc events held by Faculties in ISTD expected to be used within four years.
ISTD Bursary Fund Funds to support students who require fnancial assistance. Transfers to the fund are
bursary awards to qualifying students to be disbursed.
Danceproms A unique collaborative project between two of the world’s leading dance training and
awarding bodies, ISTD and the Royal Academy of Dance and the Royal Albert Hall.
Funds are expected to be used within four years.
Restricted funds Description of funds
Cecchetti Society Trust Fund Provides scholarships and bursaries for Summer Schools.
Patricia Prime Trust Fund Provides an award to an eligible ballet student.

The Trustees intend to rationalise designated reserves during the year ended 31 March 2023 to align with future plans.

ISTD Annual Report and Financial statements year ended 31 March 2022 25

20 Analysis of net assets by fund

Fund balances at 31 March General funds Designated Restricted Total Total
are represented by: 2022 funds funds 2022 2021
2022 2022
£000s £000s £000s £000s £000s
Tangible fxed assets - 10,169 - 10,169 10,276
Intangible assets - software - 245 - 245 457
Fixed asset investments - 3,000 - 3,000 2,201
Current assets 2,198 466 - 2,664 3,093
Current liabilities (861) - - (861) (570)
1,337 13,880 - 15,217 15,456
Fund balances at 31 March General funds Designated Restricted Total Total
are represented by: 2021 funds funds 2021 2019
2021 2021
£000s £000s £000s £000s £000s
Tangible fxed assets - 10,275 - 10,275 8,259
Intangible assets - software - 457 - 457 693
Fixed asset investments 1,063 1,138 - 2,201 1,213
Current assets 593 2,500 - 3,093 9,988
Current liabilities (570) - - (570) (960)
1,086 14,369 - 15,455 19,193

21 Related party transactions

During the year £431 (2021: £519) was paid to Theatreserve and £ nil (2021- £ nil) paid to the Weston School of Dance and Performing Arts, two businesses owned by Trustee Ms Elisabeth Swan and her spouse.

22 Connected charities

The Imperial Benevolent Fund is a charity setup to assist current and former members of ISTD in financial difficulty through ill health or old age. The charity has its own trustees who are independent of the trustees of ISTD.

23 Operating leases

At 31 March 2022, the Society had minimum future receipts from an on-cancellable operating lease for rent and service charges as follows:


charges as follows:
Year ended 15 months to
31-Mar-22 31-Mar-21
£ £
Due within one year 98,700 -
Due after more than one year and within fve years 296,100 -
Total 394,800 -
24 Pension costs Year ended 15 months to
31-Mar-22 31-Mar-21
£000s £000s
Pension costs 116 160
Accrued pension contributions at 31 March 16 16

26 ISTD Annual Report and Financial statements year ended 31 March 2022

25 Post balance sheet events

There are no post balance sheet events to be disclosed.

26 Reconciliation of net movement in funds
to net cash fow from operatingactivities		 2022
£000s		 2021
£000s
Net movement in funds (132) (3,739)
Gains on investments (199) (88)
Dividends received (78) (56)
Bank interest received (13) (31)
Depreciation charges 249 57
Amortisation 212 252
Loss on disposal of fxed assets - 53
(Increase)/decrease in stock (15) 24
(Increase)/decrease in debtors (63) 3
Increase/(decrease) in creditors 182 (390)
Net cash generated by/(used in) operating activities 145 (3,915)
27 Statement of fnancial activities **Note ** Unrestricted
Funds		 Designated
Funds		 Restricted
Funds		 15 months to
31-Mar-21		 Year ended
31-Dec-19
For the period ended 31 March 2021 Total Funds Total Funds
£000s £000s £000s £000s £000s
Income
Income from charitable activities (Examinations,
Courses, Subscriptions, Congress) 4 2,917 - - 2,917 6,597
Investment income 5 87 - - 87 93
Other income 6 298 - 11 308 306
Total income 3,302 - 11 3,313 6,996
Expenditure
Expenditure on charitable activities 7 (5,959) (1,201) (12) (7,172) (8,049)
Total expenditure (5,959) (1,201) (12) (7,172) (8,049)
Net expenditure before other
recognised gains and losses (2,657) (1,201) (2) (3,859) (1,052)
Currency exchange gain 34 - - 34 15
Investment gains 88 - - 88 187
122 - - 122 202
Net expenditure (2,535) (1,201) (2) (3,737) (850)
Transfers between funds 57 (57) - - -
Net expenditure before extraordinary items (2,478) (1,257) (2) (3,737) (850)
Extraordinary items - - - - 43
Net expenditure and net movement in funds (2,478) (1,257) (2) (3,737) (807)
Reconciliation of funds
Total funds brought forward 3,564 15,627 2 19,193 20,000
Total funds carried forward 20 1,086 14,370 - 15,456 19,193

All incoming resources and resources expended are from continuing operations. The statement of financial activities includes all gains and losses recognised in the period.

ISTD Annual Report and Financial statements year ended 31 March 2022 27

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