ANNUAL REPORT 2020-21 Royal National Theatre Foundation Ch8rfty R6glgtr8tlon Number. 271700
ROYAL NATIONAL THEATRE FOUNDATION CONTENTS TRUSTEES, ANNUAL REPORT Adminlstralive 081ails Report of Chairman Stw¢lure, Governance and Management Public Benefit DisGIosur8s Objectives and Aclivltie8 AGhiev8ments and Performance Financial Review Investments Key Ri8k8 and Uncertainlles Dlsclosur88 Plan8 for Future Periods Re8erv88 Connected Chariti88 Stslemenl of Recommended Pracllce Slalern&nt on D18closure of Informalion to the Audltor8 Slatament of Tru8lees' Responslbililie8 INDEPENOENT AUDITOR'8 REPORT STATEMENT OF FINANCIAL ACTIVITIE8 13 BALANCE SHEET 14 STATEMENT OF CASH FLOWS 15 NOTES TO FINAMCIAL STATEMENTS 16 In thi8 document The Roy81 Nation81 The8tre Foundation 18 referred lo as 'lhe Foundation. and the Royal NalK)nal Theatre is referred to 88 "the NT. °Ihe N8lional' and "the Nab'onal Theatre"
ROYAL NATIONAL THEATRE FOUNDATION TRUSTEES, ANNUAL REPORT Fcf Ihe year 8nded 31 March 2021 ADMINISTRATIVE DETAILS CHARITABLE STATUS The Roy81 National Th881re Foundation I'The Foundalion'l was 8stsblished as an unincorporated charity under 8 Trust Dead dated 6th July 1976. The Foundatlon was registered with the Charity Commission (number 2717061 on 10th August 1976. PRINCIPAL OFFICE Th8 Royal National Theatre, Upper Ground, London, SE19PX TRUSTEES Sir Richard EyTe (Chalrl Grah8m Barker Su88n Chinn CBE Ann8 Khaz8n Leslèy Manvllle Daniel M8rgolin Ellzabelh Offord Cllve Sherling Sbmon Warshaw Nlcholas wrh1 EMERITUS TRUSTEE Robert R8yn6 SECRETARY TO THE BOARD Donna Parker BANKERS Sanlander, London Corporate Banking C&ntre, 12 Park Square We81, Ulster Tarra¢e, London. NW14LJ INVESTMENT MANAGERS Rathbon8 Investment Management Ltd, 8 Flnsbury Circus, London, EC2M 7AZ INDEPENDENT AUDITOR Buzzacott LLP, 130 Wood Sireel, London, EC2V 6DL
ROYAL NATIONAL THEATRE FOUNDATION TRUSTEES' ANNUAL REPORT
For the year ended 31 March 2021
REPORT OF CHAIRMAN
I had never imagined that there would be an existential threat to the National Theatre in my lifetime, but the Covid virus has transformed all our perceptions of normality. I feel an ironic pride to have chaired the Foundation at a time when it has proved essential to the survival of the NT and has helped to sustain its life-blood - freelance actors, directors, designers, writers, musicians - as well continuing to fulfil its obligation to support NT staff in difficulties.
As set out in the report, during the 2020/21 financial year the Foundation granted £3.6m to the National Theatre; £1 m to freelancers; £1 m to underwrite the NT's continuing commitment to activities that justify its "National" title; and £1 m for urgent capital needs in relation to the Costume workshop. In addition, £570,000 was granted to underwrite the Box Office shortfall. The Foundation further assisted freelancers through a grant of £36,000 towards the set-up and running costs of Freelancers Make Theatre Work.
Once again, albeit posthumously, I would like to thank Max Rayne, former Chairman of the NT Board, for his generosity and prescience in creating the Foundation, as a "rainy day" fund for the NT in the event of severe financial crisis. In addition to Max's donation, many admirers of the NT's work have left legacies enabling the Foundation to make grants to the theatre and to individuals in hardship. We are immensely grateful to those donors and their families for their bequests: they have been vital in helping to ensure the continued existence of the NT.
The pandemic continues to have a painfully damaging effect. To that end, the Trustees increased the designation for benevolent support of NT staff to £1 m and made a further 3-year grant to help support additional welfare and counselling provision at the increased level of £50,000 per annum. For the period April 2020 to November 2021 the Foundation has awarded benevolent grants to 36 individuals, totaling £58,480. While that represents an increase on the usual level of benevolent giving, the number of grants awarded does not reflect the intensive work which has been ongoing to assist individuals in other ways, including through welfare and counselling support, and help with financial planning and applying for state and other benefits. I am grateful to Donna Parker, Secretary to the Board and Juliet Messenger, Welfare Counsellor for their dedication to this, not just in the last eighteen months but over many years.
Surprisingly, in spite of early deleterious effects of the pandemic, the markets have since recovered and the value of the Foundation's Reserves were £5.6m at 31 March 2021.The Trustees are therefore confident that the Foundation has sufficient funds to enable it to continue with its core remit. Furthermore, the continued generous support of donors through legacies will enable us, in time, to rebuild funds.
I had been due to step down as Chair of the Foundation in June 2020, but I agreed to continue for an interim period; now is the right moment for me to step down. I am delighted to report that, following a Chair succession process led by Simon Warshaw, Daniel Margolin and Lesley Manville, Graham Barker has been elected as the new Chair of the Foundation and will take up that role after the February 2022 Trustees meeting. Graham has a deep knowledge of the Foundation and a passion for the work of the NT, and I am delighted that he has agreed to take on this role. I would like to thank him and my fellow Trustees for their support and dedication. It has been a pleasure to serve with them.
Sir Richard Eyre Chair of Trustees
2
ROYAL NATIONAL THEATRE FOUNDATION TRUSTEES, ANNUAL REPORT the year en¢Jed 31 fvAar¢h 2021 STRUCTURE, GOVERNANCE AND MANAGEMENT ORGANISATIONAL STRUCTURE The governing dwumenl of the Foundation L8 a De¢lar8tion of Trust, d818d 8 July 1976. The Found8lK)n applies the principles of the Charily Govemance Code 2018. The FouThJ8b'on's Trustees 98ner8lly meet Ihiee limos ¥ year. Business al Trusl8es' meetings usually includes considerallon of grants lo beneflarI•s, grants lo the National Theatre. repts on previou$ awards, 8 review of th8 financial p08111on and of investrnent policy and performanc8, and approval of the annual Tru$lees' Report and Accounts. MEMBERSHIP OF THE TRUSTEE BODY The Trustee5 keep under review the membershlp of the Trustee body and are mindful of the need to ensure that. 88 group, they have Ihe skills and experi8nc8 lo enable them lo fulfil their responslbllllSes 8s Trustees of the FoundBllon. Tru8tee8 8re 8ppolnl8d by existing Truste88. All Trustees are appointed f(x an inllial term of thr88 years,. after which Ihey may be reappoinled for a maximum of a lurthgr Iwo thr88-year temis. The Secretary aff8nges the Inducllon ol new Tru$le8s lo provlde th8m wllh Information about. and an understandlng of, the objects ol the Foundation, arKI th6ir rosFmibllltles as charity Truslaes. DECISIONS Th8 Foundallon'8 Trustees goner8lly meet three Ilme8 a year. Buslne88 usually Includes con$i¢Jeratlon ol applic8tlons for gran18, report8 on prevlous grant award8, a revlew of th8 financl81 poslllon and of the investment policy. To deal wlth emergency benevolent opplicatlons, 8 B8nevolenl Sub-commlllee with the power lo commit lund¥ wilhin prescribed limits can be c811ed al short notice. Ils decIsn6 8re roported lo the Trustees in tho full meeting. In additn, lh¢ Chairman has discretion to make sm811 erner9ency ben8vo18nl 9ranls. Grants made undor Ihl8 aulhorlly by tho Chalrman must be rollfied by the Tru81888 in a full meeting. The Truslees are independent of the Natlon81 and opor81e al thelr own dlscrelk)n, howev8r In the int8r88ts of malntsining on up lo date knoedge of Natn81 aclivllies, two Trustees 8180 serva on Ihe National's Board. Th8 Tru81oe5 havo procedures in place for handling any conllicl d Interest lo whh thal slluatlon rn1 lead. INVESTMENT AND FINANCE COMMITTEE Th8 Inveslm8nl and Finance Committee compr188d four Trns1688- Slr Rlchard Eyre {Chalmanl, Anna lthazen. Cllve Sh8rling, and Slmon Warshaw. The Commillee's responsibilitbes, which are Sel out in approved Terms ol Reference, include reviewing the inv•$lment p)licy and p8rfomiance', monilorlng and reviewing financial pertorman¢e and man8g8menl,' reviewing the pr8par¥tion of Ihe annual financi81 slalemenls., r81alionships with the External Auditors 8nd reviewing the rlsk regisl8r, The Investment and Flnance Commlttee members have regular meetings 8TrJ discussion5 With Ralhbone Investment Managemenl Limited Ilnveslment Managers) lo monitor inveslmenl performance and review th8 inve$lm8nl slr816gy. PUBLIC BENEFIT DISCLOSURE Th8 Trustee5 confirm that Ihgy have referred lo the guidance con18ined in the Charity Commission's publlshed guhJance on public benefit when reviewing the Foundalioii's 8ims, obleclive8 and grant making policy 8nd in planning future activities. The Foundation carrie6 out Ih8$e objectives and seeks lo a¢hleve Publ beneflt through the following grant giving poliGy-. Grants lo the National Theatre are made primarily to fund initiative5 which are outside of the National's financial capabilities In any particular year but are relevant lo ils current poliGy. The National Theatre is itself a charity with 8 comprehensive public reach achieved through accesslble ts'cket pricing, an education arm and a growing internet and digital pr8sen¢e lo rnemb8 of the public.
ROYAL NATIONAL THEATRE FOUNDATION TRUSTEES, ANNUAL REPORT For the year ended 31 M8rch 2021 PUBLIC BENEFIT DISCLOSURE (CONTINUED) Benevolent grant8 are made to indivKJuals who work, hav8 worked or who have 8 c1058 associ81iDn with the National 8nd who are in need. 08JECTIVE8 AND ACTIVITIES AIMS AND 08JECTIVES OF THE FOUNDATION The objec1$ of tha Foundallon shall b8 In the Unltgd Klngdom or any other part of the world.. to gducale the publlc in the art of drama and lo promote th8lr appreclallon of cl8sslcal and modern drama in all118 artistic forms at the Royal National Theatre., reliev8 past or prosfrnt employee8 of the Royal NatvJnal Theatre who arè In neceIl0U8 circumslanG8S.' afKI ¢. {1) as ancSllary to Ihe above obl8Cts, to support the Royal N8tlonal Theatre In Its aims lo lurth8r ihe appreciation of classical and modem drama,. c. {11) to FKomole and support such olhar charrtable inslltutions or purpo8e8 as the Trustee8 may from lime to Ilme at their absolute d18crelion thlnk fll. ACHIEVEMENTS ANO PERFORMANCE Th8 Tru8te8$ are extremely grateful to the indlvMIu818 have remembered the Foundallon In Ihekwill6. The Foundallon has rncaived legacies during the year lotalllryJ £415,791 12019120.. £282.5851. In recogn11n ol the extraordinary circumstances impa¢ting th6 NT. the FoUndatn does nol ernploy any prol68$ional fundrai8er8 a1 complies with the 518nd8rd$ of th8 scheme lor fuThgraising. No complaints have been receivgd aTrJ r undue pr888ure has been p18ced on any per80n. The Trustee6 granted a 10181 of £3,860,000 to the Nallonal Th881re. £1,000,000 to 8UPPart the Freelancor communlty who were p8rti¢ularly impacted by COVID-19 whlch was funded from the R8slricled Learning fund. £1.000.000 10 8UPPOrt th& Nallonal Tho8lre's commitment 10 8UPPOrt N8llonwide acllvily,. and £1.000.000 for urgent c8pI181 needs In relallon lo the Costume workshop. £570.000 was granted lo underwrite the Box Off8 Shortfall, whbh allow8d th$ Nallonal Theatre lo continue lo perform during Ihe year wh8n not In lockdown. Thi8 was fundad Irom the Restrkled NT Gener81 Purpose fund. the Rostricled NT Leaming fund and tha General Fund. Gr8nts of £50,000 supported the N3llonal Thgatre's w8Ware counsolllng sèrvlces and £40,000 lo the Pe18r H811's Directors Award. These were 811 granted from the General Fund. The Trustees granled £36.000 to Freelancers Mak8 Theatre W(Yk to 8UPPOrt the devesopmenl arKI malnlenance of their website. Th18 wa8 grant&J from the Gen8ral Fund. Thirty-three benevolonl grants lot8lllng £41,88012019120: £38.9791 were made this year to ¢urrent and fomier slaff and membors of the acting companies. No appr8nliceship support gr8nls were made this year12019120.' £8.96718s the NT was unable lo ernploy appr8nlic88 while being ¢10sed during the pandeml¢.
ROYAL NATIONAL THEATRE FOUNDATION TRUSTEES, ANNUAL REPORT For the year 8nded 31 March 2021 FINANCIAL REVIEW The Found8lion received inv8stmenl Income durlng the year of £163,155 12019120.. £215,595]. £112,762 of which 18 unrestricled12019120'. 159,1691. Donats'ons and legacy in¢ome of £415.79112019120.' £282.5651 wa5 r$¢elved during th8 year. Two 18gacies were direclty rocefved into the FOUallon lotallng £25.06412019120'. £10.3091. aTrY total legacies of £388,88712019120.. £262,256] wore received from the National. Total expenditure in the year wes £3,815.65812019120.. £541,085]. The Foundalion's investment portfolio achiev8d o gain on ils inve8lmenl assets of £1,243,743 12019120.. incurred a loss of £669,099]. glvlng an annual absolute investment gain 01 £1,406,898 linveslmenl inccffie plus gain on portfollol12019120.' Investment Income plus1088 on portfolio of £453,504]. The tolal fvnds bala8 carri&J forward al 31 March 2021 wa5 £5,601,80512019120.' £7,594,774]. Th8 negative impact of the Covld-19 pandemic on equity markets in the lourth quarter of 19120 was slgnificant. however the markets have sin¢¢ recovered and the value of Ihe Foundation's inveglmant p)rtfolio as 81 31 March 2021 was £9,235,442., of which circa £1.2m comprlse$ investment growth sinoe 31 March 2020. INVESTMENTS The Trusle88' overarching goal 18 an investment slralegy deslgn8d to produ¢8 a b8lan¢8 of capital and inGomè growth lo enable Ihem lo continue the Foundation's grant support lo the Nation81 and lo me81 its other chorilable objects in manner and scale broadly 8imilar lo that vided in the p881. The Foundallon has a total return 81ralegy wilh a goal ol achievln9 an averag8 annual r8tum of at18881 RPI plug 3% 8uch 8 lo preserve and increase Ils capilal over the long term. Risk is minimised by apwopriale diversttic81ion across global equlli85, Ilxed income. property and ¢a$h with consideration belng given from lime lo time lo investments in hedge fuTrJ8, emer9ing marke13 and convertible bonds. LiquSdlly Is an important conslderalion 8nd all investments are required lo be of a reasonably liquld nature. 1118 Inlended that a minlmum annu81 income from inlgre¥l and dlvidend8 and. If necessary, 1fv4uidalion of capilal gains. of al least £100,000 should be generaled lo fund benevolent grant8, other grants 8nd expense8. Whan malorlal gr8nts are awarded to be paid out over a number of year8 the Tns8te8s Iran8fer fuTrd8 to a $8parale pjrtlollo lo 8nsure c8pilal preservatlon of the requlred amount. Perform8nce Is reviewed al18881 Iwi¢é a year by the Inveslrnenl and Finanre Committee. Investment pollcy 8nd Strategy Is revi8W8d 81 lea81 annually by the 88me Commillep and followfrd by a roport made to the full Tru¥te• body. KEY R18KS AND UNCERTAINTIES DISCLOSURE The Trustee8 have considered tho major strategic. buslnoss and operational rlsks whlGh th8 Foundation faces. The fundamental one Ss uncertainty of irwme. Pr(Kedures. whith Include regular rep¥ts'ng on risk management the Trustees. have been established lo manage these risk8. PLANS FOR FUTURE PERIOOS The Foundation wlll continu8118 888enlial remit of bonavolonce by maklng grants lo NT omploy68$ and p8$t $18ff member8 suffering financial hardship. In response lo the devastating impact of Covid-19 on the National Theatre's finances. and as tts funder of last resort. in September 2020 the Foundation agreed lo a grant lo the NT a guarantee agalnsl box office1089 due to Covid-19 relaled risks of up lo £3m. £0.6m was drawn-down against this guaranleg, The Trustee5 are mindful of the continuing adverse IradiTrJ environmenl as a result of COVID-19 on the NT and have recognised there may be a furthèr application for support. Working ckjsely with the National Theatre. the Foundabon will continue to $UPF¥)rt and develop the Fundraising campaign lo encourage supportors of the National Theatre to remember the Thealra in their Wills.. RESERVES UNRESTRICTED FUNDS In setting a target level of reserves the FouTrdalion, the Tfuslee8 hav8 taken Snto account that th8 Scale and number of applulK)ns to the Foundation a variable. that income from retvms on the investrnent portfol are unpredictable and that in the event of a major, exceptional financial cri8ls afflting th8 Nation81, the Foundation would wish io provide significant support of a general nature lo it. In d(Hry so, the Trustees thus recognise the moral commitrnenl gN8n lo the then Trustees of th& Royal National Theatre Endowment Fund, on its winding up, Ihal funds transferred lo the Foundation from the Endowment Fund would be retained so as to be able to a551St the National in such Gircumslarrm.
ROYAL NATIONAL THEATRE FOUNDATION TRUSTEES, ANNUAL REPORT For the year ended 31 March 2021 RESERVES ICONTNUED) UNRESTRICTED FUNOS (CONTINUED) The Trustees reviewed the likely size of such a grant appIallOn from the National were il lo arise. They have been advised that the annual incoming resources of the National Theatre in 2020121 was £56.3m and the Nalional's unr8slricled fund stands al £16.Om. The National Theatre has determined, following a risk assessed review of income and expenditure, that il should hold unr88lri¢led Teserves equiv8l&nl lo Ihr8e months of ils cor8 operating expenditure. clrca £15m. In ligtrl of Ihls, th8 Tru$le88 con$id8r the level of resetvas in Ihe General Fund, which Stood al £2.9m 81 the year-end 12019120,, £3.8ml, together with the d88ign8leé funés held In the Foundation General Purp088 fund £0.5m 12019120.. £0.8ml and the NT General Purpose Fund £0 7m12019120'. £1.1 m) lo be adequalg lo enablo them lo respond lo the polenllal v85ue of grant applkalions In thè fore5eeabl8 future. In September 2020, the Foundallon rn8ponded to such a major financial crt8i8 affllcllrvj the National Theatre lollowlng the dev88taling impact ol the Covid-19 pand&mi¢ on ils finances. Tha FourKl81ion agreed grant support of £3m and a box oifico undefwrite lo supFort Covid-19 related risks of up to £3m. subj8cl lo the Nalional Theatre securing a loan of £19.7m from the government's Culture Recovery Fund this was Secured in February 2021. At the lime of agr8emenl. the Found81ion's investment portfolio had subslanlially recovered with B value of £8,257.380. As al 31 March 2021 the portfolio stands al a value of £9,235,442 and the National has drawn4own £3.1 m from the Foundalion In grant 8UPPOrt and £0.6m lo under-write the Box Office a8 al March 2021. The Tru81ees aim, over the wmlng five to len year8. to re-bulld the Found8llon'8 unreslrlcted funding legacy SUPPOrt Irom donor8, In order lo provlde support lo the Nollon81 Theatre in the event of a future m8jor flnancl81 crisis. DESIGNATED FUNDS B•n•vol•nt Fund The purpose of this Fund 1$ lo provide prol8clion for a proportion of the Foundatn'S assets for the fulure so as lo enable the Truste85 lo continue lo fuffll the Foun¢J81ion'$ second charitabla obiecllve, lo provide gUPPOrt lo the Staff and fomier members ol stsff of the Nation81 ar ol the acting company who are in neces$llou$ circumstances. Due lo the contsnuln9 impact ol COVID-19, Trustees nSider that 8 fund of £1.000,000 58 needed lo meet likely on-going appllcalions and therelore this fund has been increased to £1,000.000 frorn £SOO,000. The Trustees k86p this pollcy under review. An amounl equiv8lenl to that pald out In gran181i Ir8n8ferred frtyn the Gener81 Fund each year. Since Aprll 2020 the Foundallon has awarded hardship grants lo 36 Individual8, lotallng £41,880. In prlor years the Trustees have offered 8UPPOrt to the NT'S Appr8nliceshlp scheme through Ils alloc8tlon of funds, assisllng individual apprentices who might Ihems8lves be in hardshlp bec8u8e of travel 51$ or Ilving expen58s. lo the extant Ihal 11 would jeopardise their ability lo complete the apprentice8hip. Whilst, Ihe Trustee5 dKI not receive any applications this year. they feel th81 there is still a re81 need in thi6 8rea, and glven their COTnmilm&nl lo the NT'S apprenticeshlp scheme. have agreed lo contlnu8 to Support il in fvture year8. FouTrd•tlon Gon•ral Purpo•a Fund The Legacies Agreement with National Thealie leffectrve 17 Feiwuary 201618lale8 that 811 unrestrlcted18gaci88 r8celved diroclly by the Foundation arè to ba allcK8led lo the Foundatson General Purpose Fund. RESTRICTED FUNDS The L8gaGie8 Agreement with National The8lr8 leffectiv8 17 February 201618tales Ih8t all restricted legacies recelved by either the National Theatre or the Foundallon are lo be allocated lo the Funds, which is one of the five reslrKled National Theatre SufndS {NT Learning, NT PrCclion8, NT Premi8e8, NT SludKJlNew Work and NT Gener81 Purpo$&¥l. NT L•8mlng sub fund This fund, previously known as Le8mlng Fund. w8s established lo reflect Ihg former Legacies Agreament (dated 22 March 20121 between the NAlional Thealra and the FoundatKJn lo provide a long terni and sKJnrficanl source of grants for leaming activities al the National and through the Foundation. Monies equlv81ent lo amounts received as unreslricled legacies by the National Theatre were given lo the Foundation for investment in this FurKI. The current Legacy Agreement stipulated that the balance on the Learning Fund lo be credited lo the NT Learning sub-fund. The balance on the NT Leaming suk>fund represents the brought forward balance and an a1th81ion of the net galn8 on investment In year.
ROYAL NATIONAL THEATRE FOUNDATION TRUSTEES, ANNUAL REPORT For the year ended 31 March 2021 RESERVES ICONTNUED) RESTRICTED FUNDS (CONTINUED) NT Productlons. NT Prornl•••. NT StudiolN•w Work and NT General Purpose The58 funds repr83ent legacy gift8 received In year and an allocation of the nel g81n8 on inve5trnenl in year. CONNECTED CHARITIES Th? Foundatlon has obj8clive5 related to trthe of tho National bul fulfills these indepondently. LEGACIES The NT General Purpose Fund received £388,887 Irom the N8tional representing legaci88 18ft 10 11. The Foundation General Purpose Fund received iwo18g8cle8 totallng of £25.084. which were left dlreclly to the Foundallon. CHARITAeLE ACTIVITIES In March 2020, the National made an 8pplicallon fu a gr8nl of £50,000 a year for three year8 10 8UPPOrt the Welfare Department,. the flrsl inslallmenl w8s pa lo the NalSonal durlng the year. In Seplember 2020 the Found8tlon agreed lo gfant lo the NT of £3m and a further guarantee ag8lnsl box office loss due to Covld-19 r8lal8d rlsks ol up to £3m. subject lo the National Theatre s8cunng a loan of £19.7m from the Government's Culture Recovery Fund - this wa8 $8¢ured In Fetxuary 2021. A further payrnonl 01 £40.000 was m8de to tha National for the Peter Hall Director'8 Award. There have been Ihirty-three Benevolent Grants awarded thi8 year to181ing £41,8801201912020'. £38.9791. Adminislratlve BUPPOrt 18 provlded by the Nation81 The8lre and a fa8 of £18.00012019120.. £18,000118 charged lo tho Foundabon for these servi¢08. STATEMENT OF RECOMMENDED PRACTICE The Iin8n¢l81 statements have b8en prepared in accordance with the accounling policies sol out on pages 16 10 18 and comply wlth the Slatemenl ol Reccxnmended Pracllce 'Accounling and Repting by Charlues" and relevant $lalul¢yy reqvlremenl8. STATEMENT ON DISCLOSURE OF INFORMATION TO THE AUDITORS In 80 far a8 the Trustees aro aware.. Iher818 no relevant audit Infomation of whh the charitys audltor18 unaware.. and they have taken all the steps that Ihey ought to have taken a¥ Tru8lees in order to make Ih8m8efve8 awaTe of any r8levant audit Inlormallon and lo eslabllsh th81 the charitys aLbditorn 8r8 awaie ol that information. STATEMENT OF TRUSTEES. RESPONSIBILITIES The Trus1808 are responsible for preparing the Tru81oe$' Annual Report and the financlal slalemen18 In 8ccofdanG8 wlth applicab law and United Kingdom Generally Accepted Accounting Practice {Uniled Kingdom Accounting Standards). The law aPpIable lo chantles In England and Wales requires the Trustees lo prepare financial $tslements for ea¢h financial year Wfvh give 8 true and fair view of the stale of affairs of the charSly and of the income and expendilure of charlly for that period. In prepadng these financial 8lal8ments the Truslees are required lo.. Select suitable accounllng policies and then apply them consistently., observe the methods and prlnclples In the Charities SORP.. make judgments and e8tima18s that ar8 rea8onabl8 and prudent state whelhar oppllc8ble 8ccounting standards have been followed. subject to any malarial departures disclosed and explained in Ihe flnancial statements; pr8pare the financial slaternenls on the going concern b861$ unless il is inapFKopriate to presume Ihat the charity will continue In bu$ln8SS.
ROYAL NATIONAL THEATRE FOUNDATION TRUSTEES' ANNUAL REPORT
For the year ended 31 March 2021
STATEMENT OF TRUSTEES' RESPONSIBILITIES (CONTINUED}
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions, disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the provisions of the charity's constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees' Annual Report was approved by the Trustees and authorised for issue on 31[st] January 2022 and signed on its behalf by J<.� b
Sir Richard Eyre (Chair)
8
ROYAL NATIONAL THEATRE FOUNDATION INDEPENDENT AUDITOR'S REPORT For the year ended 31 March 2021 INDEPENDENT AUOITOR'S REPORT TO THE TRUSTEES OF THE ROYAL NATIONAL THEATRE FOUNDATION OPINION We have audited the 8ccounls of the Royal National Theotre Foundation (the '¢harlly'l for the year ended 31 March 2021 which comprise the slalemenl of flnancial acllvllles, the balance sheet, the slalemenl of cash flows, th8 principal accountsng policies And the notes lo the 8ccounls. The financlal reportlng Iram8work that has been applied in Ih&ir preparation 18 applicable law and UrTrlt8d Kingdom Accountlng Standards, including Financial Reporting Standard 102 'The Flnan¢lal Reportlng Slandard appllcabl8 in the UK and R8publlc of Ir81and' IUni18d Kingdom Gen8r8lly Accepled AccJnting Pr8clice). In OUT opinlon, the accounts.. • glve a true and falr vlew of the slate of Ihe charlty's affalrs as a131 March 2021 and of the Income and expendllure for the year then ended; • have been properly prepared in ac¢ordanc8 wllh Unlled Klngdom Generally Accepted Accounllng Pra¢llc8'. and • have ba8n prepared In accordanc8 wlth the roqulr8ment8 of the Charltl88 Act 2011. BASIS FOR OPINION We conducted our audit in accordance wbth Inlomational Stsndards on AudillrKJ IUKI IISAS IUKII and applicabl8 law. Our responslbllllies under those sl8n¢Yards are further described in Ihe auditor'¥ ro$ponsibililio$ for th8 audll of Ihe account8 section of our r8POrt. We are irePendent of the charity in accordance wth the ethical requirements that are relevant lo our audit of the accounts in the UK, includlng lh8 FRC'$ Ethkal Standard. and We have fulfllled our other ethical re8pon8lbllilies in accordance wllh lttese requirements. We believe Ihal tha audit eviden¢e we have obtained Is sufflcienl and approprlale lo provlde 8 basis for our oplnion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the accounts. we have concluded th81 the Iruslees, u8e of the golng concern basis of accounllng In the preparation of the accounts Is appropriate. Based or) the work we have performed, we havg not identified any materi81 unc8rt8inlies relating to 8venl8 or conditions that, indivKlu¥lly or collecllvely, may casl significant doubl on the charlly's ability to continue as 8 going concern lof a period of al least twelve months from when the 8¢UnIS are aulhorised for i$$ue. Our r88pon81bililies and the r83ponslbilllles of the trustee wllh respect lo going conc8m are descrfbed in tho relavanl sections of this report. OTHER INFORMATION The trusleos are responsible for the other Information. The othér informallon compr15es th8 informatlon included In the annual report and accounts olher than the accounts and our 8udilor's report Ih8reon. our opinlon on th8 account8 does not cover the other infLYm4tion and we do nol express any form ol assuran¢e Gonclusion Iherèon. In Gonneclion with our audit of the accounts, our responsibility 18 to read the other informaln 8nd, in dolng so, consider whether the other informallon 1$ materially inconsistent wllh the accounts or our krthvledg8 oblained In the audit or otherwise appears lo be Tnalerially fflisslated. If we idents'fy such malerial InnSIsteIe5 or 8PP8renl material misslatemenls, we are required lo determine whether there is a material misslal8menl in the accounts or a material misslalemenl of the other informalion. If, based on the work have performed, we conclude that therg is a rnalerl81 misslalemanl of this other information, we are required lo report that lacl.
ROYAL NATIONAL THEATRE FOUNDATION INDEPENDENT AUDITOR'S REPORT For the year ended 31 March 2021 We have nothing lo reFort in this regard. MATTERS ON WHICH WE ARE REQUIRED TO REPORT 8Y EXCEPTIQN We have nothing lo report in respect of the following rnatlers in relation lo whKh the Chariti88 Act 2011 require6 us to report lo you if. In our opinlon.. • the infonnation glven In the tru$l&88' report 18 incon$1818nl In any material r88pecl with Ihe a¢¢ounts'. c • suff¢ient accounting red8 have not been kept.. or • the a¢¢ounts aro not In agreemonl with the accounlln9 r8cord8 and r8lum8; or • we hava not recelved 811 the infomation and explanations we require for OUT audll. RESPONSIBILITIES OF TRUSTEES As explalned more fully in the truslee8' r88ponsibilili88 $18lem8nl, the tru8te88 are r8sFonsible for the prep8ralion of thè accounts and for belng 8ali8fied Ihal they give a true and falf vlew. and lor such internal control a8 the Iru81ee8 determlne 18 nece88afy to enabl8 tha preparation ol acu15 that are free from material missl8tem6nl. whether due to fraud or ernx. In preparing Ihe accoun18. the trust888 are re8pon8lble for a888881ng the charlly'B abSllly lo conllnue as a going concem, disclosing. •$ appluble. matters rel8led lo golng concern and uslng the golng concern basls of aceounllng unless the tru81ee8 ther inleTrJ to Iwuklale lh8 charlty or lo caase operations, or havo no r9ali81ic alternalivo but lo do so. AUDITOR'S RESPONSIBILITIES FOR THE AUOIT OF THE ACCOUNTS Our obl8cllv88 8re lo obtain reason8blg 88$uranc8 about whether the a¢unIs. as a whol8. are free from materlal ml88lalemenl. whether due lo fraud or error, and lo issue an audiloes report that includes our opinion. R8a80n8ble aBsur8nce is a high16vel of assurance bul Is r1 a guarantee that an 8udll conducted in accordance with ISA8 IUK) 11 8wayS detecl a material ml$st818menl when It exlsls. Ml$$lal8m8nts c8n aTlse from fraud oryor and are ¢on$id8red material If, indivldually or In the aggregate, they could rea80nably be expttted lo influence the economic decL8ions ol u6ors. taken on the basis ol Ihes8 aoUnt8. Irregulariti88, Sncluding fraud, arg instances of non-complianc8 Wlth laws and regulations. Vve desSgn procedures In line wllh our responsibilities, outlined above, lo del¢¢t malerial ml$$l8t8ments in respect of Irregulafllleg, Includlng fraud. The 8xtenl lo which our procedures are capable of delecling irregularrties. including fraud, 18 detailed below.. How the audlt wa8 ¢onsldored capable of detecllng irregularitie8 includlng fraud.. Our 4pproa¢h lo Idenlwying and as88581ng the risks of material misslalernenl In respect of irregularities, Iruding fraud and non-complianGe with laws and regulallons. was as follows: The engagement partner ensured Ih81 the angagement team collectlvely had the appropriate competence, pabilili88 and skills to enlrfY or recogni$0 non•complkqnG8 wlth applic8ble laws and regulallon8: We Idenlrfied the laws and regulaIn$ appli¢able lo the charlty through discussions with management and tru8tees 8nd from our krKwiledge and experienco of the Gharity s8¢1or.' 10
ROYAL NATIONAL THEATRE FOUNDATION INDEPENDENT AUDITOR'S REPORT For th8 year ended 31 March 2021 AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE ACCOUNTS (CONTINUED) We focused on Specif laws and regulations which w8 consldered may have a direct material effect on the accounts or the activities of the charity. These Ir)cluded bul were not limited lo the Charities Act 2011. Accounting and Reporting by Charities,. Slalement of Recommended Practice applicable lo ¢harlti8S Preparing their accounts in accordance with the Financial Reporting Slanéard 8pplicabl8 lo the United Kingdom and Republic of Ireland IFRS 1021 leffe¢live 1 January 20191, taxation legislation and data prol8Ction and anti- bribery legislation., and We assess the extent of compliance with laws and regulallons Id8nlifled above by making enquiries of m8nagem6nl 8nd r8presenlative8 of the trusta88 and revlew of ltte minutes of trustee rneelbngs. We a5ses8ed the susceptibility of the Charity's accounts lo material misstatement, Includlng how fraud might occur by.. Making enquirios of managament and representative¥ of the Iruslee5 as lo whare they con8id8r8d there wa8 susceptibility lo fraud. their knowledge of actU81. suspected and alleged fraud,. and Considering the Internal controls in place lo mlllgale risk8 of fraud and ncn-compllance with laws and regulations. To address the risk of fraud through manag8menl bias and ov8rride of contro18, we.. Perfomied an8lytSGal procedures lo identrfy any unusual or unexpected re1811on8hlp8', T88ted the aulhorlsation of expenditure., T88ted the impl@mentalion of flnanci81 controls., Assessed whether judgements and a88umpllons made In delerminlng the accounllng e8timales wère Indicativ8 of potential blas., and Investlgated the rationale behind ¥1gnWlcanl or unusual transactions. In response to the risk of irregularilles and non-complian¢e with laws and regulations, we designed proc8dure$ whlch Included, bul were not Ilmlled to: Agr88ing fSnancl81 s18tement disclosures to underlylng supporting documentation., Reading the minutes of meetings of the truslee8', and Enquiring of as lo actual and potential liligalion and claims. There are Inherent limitations in our audll procedures described above. The rnore removed that laws and Tegulations are from financial transaclions, the less likely il is that we would become aware of nonpcompllance. Auditing stsndards also lirnit the audit procedure5 required to IdentSfy non-compliance with laws and regulations lo enquiry of the Trustees and other management and the inspection of regulatory and legal orrespondence, If any. Material misstatements that arise due to fraud can b8 harder to detect than those that arise from error as they may Involve delib8rale concealm8nt or collusion. A further description of our responsibllitl8s for the audit of the accounts is Ioc8ted on the Finar181 Reporting Council's website at ww.frc.org.uklaudilorsresponsSbilities. This description forms part of our audllor's report.
ROYAL NATIONAL THEATRE FOUNDATION INDEPENDENT AUDITOR'S REPORT For the year ended 31 March 2021 USE OF OUR REPORT This r8POrt is made solely to th& charity'5 trustees, as a body. In aocordanG8 wllh section 145 of the Charities Act 2011 and with regulations made under secllon 154 of that Act. Our audit work has been undertaken so that we rnighl slat8 to the charity's trustees those mallers we are required to slate to them in an audito18 report and for no other purpose. To the fullest ext8nl P8Tmitted by law, w8 do not accept or assume responsibility10 8nyone other than the charlly and the charity's trustees as a body, for our audit work, for this report, or for the oplnlons we have formed. Bu2zacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL Dale.. 31 January 2022 Buzzacott LLP is ellgible lo act a8 an audllor In l&m8 of sectlon 1212 of Ihe Companies Act 2006 12
ROYAL NATIONAL THEATRE FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES For the y8ar ended 31 March 2021 YEAR ENDED 31 MARCH 2021 Unrn$trlet•d D•nat•d R••tri¢tqd Total Nates Donatb)n8 & le916$ IrwestThn18 25.064 388,887 415,791 163 155 97,238 TOTAL Iwwn• & Endrym8 Exp•ndTrtur• on.. lnveslffnl M8na9emwrt Ra19 don•ith$ & Wi•8 Ch8rflabl6 aClivS1198 31.350 16.247 52.802 1707 423 2 013 471 3 7fj3 056 TOTAL Exp•ndltur• N•t yln•Jllo•M•l on Inv•stm•nt 1 738 773 2029718 3815658 741.203 118.338 304.152 1,243,74J Net In¢t)mgll•xp•ndbtur•l 1208 28e Tran•f•r• b•tw••n fund• 12 N•t mov•m•rt In fub)d• 153921 120e 266 1892 969 R•con¢1114tlon Fund•'. Total funds brought lorward 12 3,815,593 1,329,749 2,449,432 7,594,774 TOTAL Fund• c•rrl•d 10Thrd 2 874 989 1483170 1243 148 5 801805 YEAR ENDED 31 MARCH 2010 Unr••trl¢knd D••lgn•t•d R••trlct•d Totsl l)onallon8 & leg Inve8trronls 10,309 272.250 282.565 215 595 TOTL Inn0 & EndowTn•rt• 682 498 16Q E¥pondStur• on: Imiesiment Man•g•ment Co8ts Ralsirs th)n8tbns & legKio Ch8rllatJe aCVItIeS 33,C*ry7 8.tk80 422817 13.337 ,957 10,570 TOTAL Exp•ndltur• N•t gaInlI0$1••I on InvMtffl•nt (434,192) (5P,78JJ (174IIPJ (669,099J Nol Ineom•ll•xp•ndltur•l 237 712 024 Tran•f•r• b•lw••n lund• 12 $71 N•t Mov•m•nt In fwd• 712 024 R•I¢ll1•tO0 of Fd$. Total ftjnds tsoughl forwBrd 12 4.623,076 1,364,517 2,319,2CL8 .306.198 TOTAL Fund• c•rrl•d forw•rd 7594 7r4 AJI (1 eX[ndItuTe i• dwived from cgxrtiNing Thè notes on pag88 18 to 2S cwBtilute pwt fina[K# 8latwnents.
ROYAL NATIONAL THEATRE FOUNDATION BALANCE SHEET At 31 March 2021 2021 20 Flx•d A•••t•: In¥eBlments 923S.442 7 807 930 TOTAL Flx•d A•••ts Curr•nt ••••l•', O¢l)lors 10 36.839 AecN•d IncAim 10 14,996 12,245 Cath at nk and In hgno 70TAL Cun•ntA•••i• Cr•ditor•,' amounts f•WNJ wlthln on• y••r N•t Curr•nt A•••WU•l)Ulll••l 11 3 705 017 3 833 637 TOTAL A•••ts IM• Curr•nt U•blltl TOTAL Il•t AM•l• Th• Fund• olth• Ch•rfty.' Unr•ilrfd•d fundi 12 2.874.989 3,816,393 1,329,749 lund• 12 1,463.870 RoBtrfd•J frJnd• 12 1 243146 2 449 432 TOTAL FundB Approv8d and auttth88d for188U8 by tho tru8ts98 on 31* January 2022 and 81gned on it8 behaw by.. Slr Rlchard EyTe (Chalrl Th• ncl88 on p8986 16 to 25 con6Ulute partofthe financ411 gtsknnts. 14
ROYAL NATIONAL THEATRE FOUNDATION STATEMENT OF CASH FLOWS For tho year ènded 31 Mar¢h 2021 2021 2020 Cagh Ilom from op•ratlng ctl¥tth•: Not u•h provlded by lu••d In) op•r•tlng •etl¥ltb•• Ca•h flow• from In¥••tlng •¢llvltlM: Dividends. intereBt 8ThJ rents inv851menls Proce8d8 frcffi oal8 of Inve8trrnnt Purchase ol mw¥trn1S 162,359 1.443,184 1440 580 214.871 332,3t i Ch•ng• In ca•h and cuh •qulv•hnt• In th• r•portlng pwlod Cash and ch oqulvulents al tho beglnniwvJ of rewrtlThJ p8rlfyJ C••h •nd u•h •gulv•l•nti •t th• •nd ol th• r•portlng p•rlod 174611 925 2021 1020 {11 R•conellSl•n ¢1 Ineom•ll•xp•ndtuMI to n•1 c•ih fl¢)w op•r•lln9 etlvlll••: N•t •xp•ndltuv• lof th• rnportlng rtod (•• p•r tho 8th1•nrt ol 11,992,969> 1162.359) {1.243.7431 IT12,024) (214,871) 869,099 DidenO. Snlefe81 aTrJ r•n18 Irrffn IrNeBtrnt1 {Ga1)IL000j Invafjlrnents Wtsthing c8pll81 movom•nl8'. Ilnom988lld8crea80 in debtor8 I01{dreal•l In credltorB N•t c••h provld•d by lu••d Inl op•r•tlng aCtlvltl•• 124,2BiI 24424 216703 111) Analy•l• ol •h and cash •quI1•nI Ch al baThk •ThJ In hwd Co$h Wd 88 pwt of thve8im¢rti F#yttdio 19.74S 24,452 TOTAL ¢••h and ¢a•h •qulvalwrt• 074011 15
ROYAL NATIONAL THEATRE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021 1 GENERAL INFORMATION The Foundation was established as an unincorporated charity under a Trust Deed dated 6 July 1976. The Foundation was registered with the Charity Commissron (number 2717061 on 10 August 1976 for the aducalbn of the public in the art of drama and the promotn ol Iheir appreciation ol cla$sul and modern drama in all 115 artist¢ forms al the National Theatre., the relief of past Of present employees of the National Theatre who are in necessilous cir¢umsl8rw', as an¢i118ry lo the 8bove objects. lo support the National Theatre in rt$ aims lo further the appreeialion of Classal and mc(lem drama. The Foundation's registered offlce Is The Royal Nalk>nal Theatr8, Upper Ground, London, SE19PX. These objects are 8el out in the governin9 document. whlch is a Declar811on ol Trusl. and have been developod Into a set of aims and obje¢tive$ 0$ dèscrlbed within thls report on page 4. 2 STATEIAENT OF CoMpuANCE The Foundation meets the dofinilDn of a public benefit entity undèr FRS 102. The financial slalemenls have been prepared In accord8n¢e with appllcable United Kingdom Accounting Standards, the Companies Act 2006, the Charities Act 2011. and the recornm8ndalion8 ol the Slalemenl of Recommended Practice "Accounting and Reporting by Charilie8. In 8ccordance with the Flnancial Reporting Standards applicable in the UK and the Republic of Ireland {FRS 1021 effectfve 1 January 20191 Charllle8 SORP {FRS1021"1. 3 PRINCIPAL AccouNTING POLICIES The following accounling polKies have been appl conslstènlly In dealing th item8 whlch ara consldered molerial in relation lo the financial statements. A BASIS OF PREPARATION The financial slal8menls have been prepared on a golng concern ba818, under the historic81 co81 convention. After maklng enquiries, the trustees hav8 a re8son8ble 8xpeclalion that the ch8rity h88 adequale r880urce8 to continue its actlvill88 for the foreseeable futur8. Accordlngly, they conllnue lo adopt the going concern bas[8 In preparlng the fin8nclal 6t8tements as outlined In the Slalemenl ol Trustees Responsibllllie8 on pag8 7, GOING CONCERN The Iruslees hav8 assegsed whether the u88 01 the golng coreM 888umptlon is approprlale in preparlro these accounts. The IIu8lees have mad8 this 89sessment in respect lo a period of one ye8r from the dale ol appfoval of these accounts. Th8 Iru8tee8 of the charlly have concluded Ih4t there ore no material uncertalnli8$ related lo events or condition8 that may C851 significant doubl on the abilily of the charity lo continue a5 a going concern. The trLJSt8e8 are of the oplnlon IhBI the charlly will have Suff1nI resources lo meet it8 liabilities as they fall duo. The Foundation has Sull16n1 cash and inveslmenls lo cover the grants commilled lo al the year end an(1 Iru3188$ are able lo control the costs 8nd level of grants m8de and as such conclude that the Foundallon remains a going concem for at leag112 months from th8 dale of 8pprov81 of these financial st8lemanls. C INCOME All income 1$ irtluded In the Statement of Financlal Activltles when the Foundation has legal 8nlillernent, Ihore 18 reasonable wobabillty over receipt and the amount of Income can be quanlffied with reasonable accuracy. Donation5 and legacies are recognised wh8n Iherg 15 eviderKe of enllllemenl. receipt 18 probabl8 and ils amount can be measured reliably,. furthermore. ontiiiomgnl to lega¢y incomo is when 6stal8 accounts are settled or there is nolificalion ol a distribution, Charitable acllvilies are recognised when there is evidence of entitlement, receipt is probable, 8nd Its arnounl can be mgasured rellably. Investment income and inter95t recaivabl8 are recognised on an accru81's ba$l$. 16
ROYAL NATIONAL THEATRE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the y8ar ended 31 March 2021 3 PRINCIPAL AccouNTING POLICIES {CONTINUED} D EXPENDITURE All expenditur6 is a¢counled for on an accruals basis and 18 c181J81fled ur)der th8 relevant acllvily within the Statemenl of Financial Activrties. Grants for specillc projects are accounted for when approved by the Trustees and lIad lo the benefKiarie8. Excess grants are wrltten back on receipt ol linal cl8lms from benerlaries. Benevolent grants are m8d8 lo current and former employees of the National 118 acllng company,. these grants are a¢¢ounled for when th8 beneflary[8 nolifi8d. RaSslng donatlons & legacies expenditure on raislng donallons and le9198 repra8enl the c05t of $e¢udng donations and legaci8$, Includlng markgllng costs. Charitable activities expenditure directly Incurred relallng lo the charltable obj8cIIve8, Including awards and grants lo Nallonal Theatre and indlviduo18. Support ¢0$18 8ra 8PFQrtioned across ch8rilabl8 8cliville8 in proportion to the value ol gr8nls and awards made as sel out in Nol8 8. Including expenditure on audit fèes, National Theatre management and b8nk charges. The Foundation uses lh8 $8Th1ces of staff employed and paid by National Th8atre and 8 management ch8rge ol £18,00012019120'. £18,000] r6 paid in thls respxt. E FINANCIAL INSTRUMENTS Th6 Foundallon h88 financial a$sels and liabilllles ol 8 kind that qualrfy as basic flnan¢ial inslrumenls. 8asic instruments are initially recognisèd al Ir8ns8Gtion value and 8ub8equently measured al amorti$8d ¥1. Fin8nci81 assets are held al 8mOrtised cost and comprise cash al bank and In hand, and deblors. Financial Ilabili1168 are held al amorti5ed co81 and comprlse of cr8dltor8, Al the Balan¢0 Shgel date, the Foundation held InanCIal8s8eI8 81 amort188d c081 of £71,38012019120.. £51.8361 and financial li8bilili08 al amortlsed cost of £3,705.01712019120'. £64,992J. F INVESTMENTS Invaslmont$. including t#)nds hekl as part of an Inveslmenl portfolio. are slated at market valLbe 8S 81 the balance 8heel date. Investm¢nls are rovalued lo market Value as 81 the balance sheet dale and the 8urplu$ or deficit of thls r8valu8lKin Is shown 08 unrealised gains or bsses on Ihe face of the Sl8tement of Financlal Acllvllle$. Realised gain$ and los$es repre58nl tho difference beeen tho sale prLxeed8 the opening market valu8 of an investment or Gosl11 purch88ed during the year. At the Balance Sheet d818, the Foundallon hèld fSnancial 888818 al matkel value of £9,235,44212019120- £7,607.930J. G DEBTORS 08blors Include amounts owed lo the Foundat4on for the provision of goods and servlGes. or the smounls the charlly h88 paid in advance for the goods and service8 11 w151 recelve. Debtors also include 8moun15 receivable on granl funding lo which the chadty Is entitled. Debtor8 are mèasured ai Ihelr recovèrable amount. H CASH AT BANK AND IN HAND Cash al bank and In hand Includes cash in h8nd, deposft8 held al Gall with banks. and other hHJhly liquid investrnents. I CREDITORS Credllors are m888ured al their s8ttlement amount and is r8¢ognisad for the amounl that the FoundatK)n anticipates il wlll pay to 88llle the debt or the amounl il has r8ce6ved as an advanGe payrnent for goods or services it musl provide. J RESTRICTED FUNDS These ore monies which have legal r¢8trktlons on Iheir use where donors have specified the funds can only be Spent on certaln of the charity's actrvities. These represent reslricled grant funding, and legaci88 covered by the agreement beiween the National Theatre and the Foundat1n 8ffecllve 17 February 2016. K UNRESTRICTED FUNDS These general funds are available for use at the disuetion of the Trustees in furtherance of the chariW5 goneral objective5. 17
ROYAL NATIONAL THEATRE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For Ihe year ended 31 March 2021 3 PRINCIPAL AccouNTING POLICIES (CONTINUED) L DESIGNATEO FUNDS These are funds set aside out of general lunds by the Trustees, for partular purwses. The purpose of thi8 Fund is to provide protecllon fN a proportion of Ihe Foundation'$ a5sèis for the future so as lo enable the Trustees lo continue lo fulfill the Foundation's second charitable objeclive, lo provide support lo the staff and former members ol staff of the National and of the acting company who are in ngcessilous circumstances. Trustees consider Ihal a fund of £1,000.000 Is sufficient lo meet likely on-going 8ppllcalions. The Truslees keep this policy under review. An amount equivalent to that paid out In grants is transferred from the General Fund each year. M TAXATION The Foundalhjn 1$ a regist8red ch8rlty and 1$ able lo take advantage of the exemptions from Income t8x under the provisbns of th8 Income Tax88 Act 2007. Tax recoverable relates to lax due to b8 reclaim8d from HMRC on Investment Income whare lax w&$ deducted al $our¢e. N CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In lh8 applkalion of the Foundation's accounting policies, tru8t888 are required lo make iu¢Jgements. 88timales and ossumplKJns about the carying valu8s of assets and liabilities Ihal are not readily 8PP8rent from other $ource5. The e8llmal8$ and underlylng assumptions 8re based on historical 8xperi6nce and other f8clors Ih81 are considered lo be r8lev8nl. Actual results may dlll8r from Ih88e 8slimales. The e81imales and underlying as$umptlon5 are revlewed on an on-golng b8sis. Revislons lo accounting estlmal88 are recognis8d the period in which the esllmale is revised if the revislon aff8cts only Ihal period. or In the perlod of the revlslon and future periods if the revlsion affec15 the current and fuluro perlods. In th8 view of the tru8lee8. no a88umpts'on8 concerning the future or è81im8llon uncertalnly affecllng a$sel8 aThJ118blli118S al the balance sheel date are likely lo result in a materi81 adlu81menl lo th8ir carying amounts In the next financial year. In addilion to th8 above, the lull Impact following the emergence of tho global coronavirus pandernt 18 Still unkrK)wn. 11 b8 Ih8relore not curr&ntly possible lo evaluate all the potential implications for the charity's activities, beneficiaries. funders, 8uppliers and the wKler economy. Estimalos u¥8d In Ihe accounts. P8rticularly wilh respgcl to the value of listed Investments (see note 9) are 8ubj8cl lo a greater degree of uncertalnly and volatilty. As sel out in these accounllng policles under'going concern" th8 Irusteeg have considered the Imp8¢1 of the p8ndemlc on the charity and have concluded that although there may be some negative con88quence8. It 18 8pproprlate the ch8rlty lo continue lo prepare Ils accounts on the going concern b8818, 4 DONATIONS & LeGACIES Unrestricled 088Kdn81ed R88trkted 2021 Donationg Legac8 1.840 1,840 413,951 25.064 388,887 388 887 415,791 Unr8Stn¢t•d Dosignated Restrlcted 2020 Donations Legac$ 10,000 262,256 io,oc 272,565 10,309 10,309 272 256 282.565 18
ROYAL NATIONAL THEATRE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021 5 INVESThIENT INCOME Unre8tri¢ted signaled Reslrieled 2021 Income from securit Interest receivable Tax recelvable 62,280 34,484 474 9.943 5.505 78 32.276 17,871 246 104.499 57.860 Unrestrlct•d D•slgnet•d Reslrlcled 2020 Income from securities Interest recewable Tax recelv8ble 98,874 40.560 470 13.615 5.585 39,878 16.358 190 152,36T 62.503 725 19.265 215 595 6 INVESTMENT MANAGEMENT C08TS Unre8lrioted Designated Restrted 2021 Inve81menl Manag8m8nl Costs 31.350 5,005 18,247 52,802 Unre$trl¢led Deswnated Restrfcled 2020 Inveslm&nl Management Costs 33,Q67 4,553 13.337 50,957 4.553 50,957 7 EXPENDITURE ON RAISING DONATIONS & LEGACIES Unrestricted 098lgnated Restrted 2021 Event8 Unrestrt¢tgd D8slgn8led Restrtct8d 2Q2Q Markellng and direct mail materi815 6,060 6.060 19
ROYAL NATIONAL THEATRE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For Ihe year end8d 31 March 2021 8 EXPENDITURE ON CHARITABLE ACTNMES la) Analys1$ of oxp•ndltur• on ¢harltsbl• a¢tlvltla• Grant fundiry of aclivili8S Suprx¥t cos18 2021 Grants to Natlonal Th8&lre Grants to Other In8111ulion8 Benevolent Grants Apprenti¢eship Support Awards 3,620.000 36,000 41.880 24,382 242 282 3,644,382 36,242 42,162 40,000 270 40,270 3.737,880 25,176 3,763.056 Grnnt fundinq of activities Support costs 2020 Gr8nts to Natlon&l Theatre Gr8nls to Oth8r Institutions 8&n&vol•nt Grnnts Apprentlceshlp Support Awards 390,000 10.000 38.979 8,967 10.000 22,248 510 2,223 511 570 412,248 10.570 41,202 9,4T8 10,570 457,946 26,122 484,068 (bl Analy•l• ol Support Co•t• Natlonal Theatre Other In8tllullon8 Benevolent Grants Appranllco Supwrt Awards 2021 Govern8n¢e NT M8n8goment Charge FInaa 6,450 74 72 6.660 17.432 500 173 202 193 18,000 516 242 282 270 N&lion?I Theatre Olhgr Instltulions 8gnovol•nt Grants ApprentiGe Support Aw8rds 2020 Govemance NT Management Charge Finance 6,592 169 659 152 7,740 15,329 326 393 1.531 352 18.oc 382 22,247 570 2.223 511 571 26.122 20
ROYAL NATIONAL THEATRE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For Ihe year eTrJed 31 March 2021 8 EXPENDITURE ON CHARITABLE ACTMnES (CONTINUED) Support costs are allocated lo the key aclivity areas driving support costs as above bad on their proportionate costs to overall direct costs. Govemance c0518 are Gomprlsed of Budilorfs r8mun8ratlon whkh consists of a statutory audll lee of £5.550 12019120.. £5,400]. The Foundation uses the services of staff employed and pald by the National Th881re and a m8n8g8menl charge of £18.00012019120'. £18,0001 is included in support C0818. (c) Analysls of Grants Grants to In81ilulion Grants lo IndlvKlua Support costs 2021 Natlonol Theatre Nallonal Theatre Fr8818ncer Support Grant National Theatre Communlly Support Giant National Theatre Capital Support Grant National Th¢alre Box Ollte UTrJerwrllo Granl National Theatre Wemare Grant Awards Oth•r Freelancers M8ke Theatre Work Gr8nl Benevolent Grants Apprenlic8ship Supwrt 1,000,000 1,000,000 1.000,000 570,000 50,000 40.000 6.735 6.735 6,735 3,839 338 270 1,006.735 1,006,735 1,006,735 573,839 50,338 40,270 36,000 242 282 36,242 42,162 41,880 3,696,000 41,880 25,176 3.763,056 Grgnls to Instilulions Grants to individuals Support costs 2020 Narfonal Theat No1nl Th9atrg Wfjlfarv Nat81 Theatre CorOn8viS Fund Nation81 Thwtrg Tourlng Grnnt A wards 1.711 570 19.965 570 31,711 10,570 369,965 10,570 10,000 350,L 10,000 Fugl Production Grants Benevolent Grants Appr•nlicoshlp Support 10,000 570 2,224 512 10,570 41,203 9,479 38,979 8,967 410,000 47,946 26,122 484.068 21
ROYAL NATIONAL THEATRE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021 9 INVESTMENTS (al Movoment In flxod as•ot Inve8tments 2021 2020 Markel Value al Beginning of Year New Money Invested Reinvested Income Amounts extracted Inv8slmenl management fee8 paid in year Incr8asellDecr886e) In valu8 of Investmen18 7.607,930 392.272 171.207 1128.3201 151,3901 1,243,743 8.364, 101 268,575 216,917 (520,135) (52.429) (669.099) Markot Valu• •t End of Y••r 9 235 442 7 607 930 At the 31 Mah 2021. all lunds w8r8 held with Rathbone Inv881ment Managemanl Ltd. (b) InvMtm•nls It M•rk•l V•lu• ¢omprl*•d: 2021 2020 Fixed Intere81 Equities Property Cash 2,305.292 5,877,185 398,099 654,866 2.201,874 4,743,651 393,932 268,473 M•rk•t Valu• at end of Y•ar 7 607 930 The value of InveBlments held outs8 the UK at 31 M8rch 2021 wa8 £2.031,73312019120'. £1,416.9531. 10 DE8TOR8 2021 2020 Trade debtors Accrued Incomo Other dèbtors 35,844 14.996 795 14, 165 12,243 976 11 CREDrroRS'. AMOUNTS FALLING DUE WIThIN ONE YEAR (•) Cr•dltor•'. amounts falllng du• wlthln on• y•ar 2021 2020 Accru81$ for grants payable Trade creditors Accruals and deferred income 3,660.000 24,480 20,537 3705017 40.000 7.320 22
ROYAL NATIONAL THEATRE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021 11 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR (CONTINUED) Ib) Grnnt commlthi•nts Brought IVard PaKI In year Committed In Cofrled fward ar Awards 40,000 3 660.000 3 660 000 3.660,000 3.660 000 Amounts carried forward wlll bo paid In 2021122. 12 ANALYSIS OF FUND8 YEAR ENDEO 31 MARCH 2021 Fund balances brought forward IrKome Expendltu Transfer8 Galn8 8nd losses Fund balanca8 carried lorward Unr•strlct•d Fund•: General Fund 3,815.593 99.078 11,738.773) {42.162) 741,253 2,874,989 D•slgn•t•d Fund•: Benevolenl Fund Foundation Gener81 Purwse8 Fund 500,¢X)O {42,1621 542,182 1.000,000 829,749 40,S88 (5,0051 (500,0001 118.338 483,670 R••trlct•d Fund•'. Reslrl¢l$d InGome NT L88rnlng NT SludiolNew Work NT Genoral Purp08e 1,340,123 8,136 1,101,173 24,322 170 414,788 11.014,5771 155) 11,015,086) 185,406 1,294 197,452 535,274 9,545 698,327 Total Fund• 7 594 774 3 815658 1243 743 5 601805 23
ROYAL NATIONAL THEATRE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the year end8d 31 March 2021 12 ANALYSIS OF FUNDS (CONTINUED) YEAR ENDED 31 MARCH 2020 Fund IncLvne Expendrfure Translers Galns and balances losses bmught foma Fund b818nc8S can¥èd loThvard Unr••trlct•d Fund•: G6nèral Fund 4,623,076 139.904 (461,944) (51,251) (434, 192) 3,815,593 D••lgn•t•d Fund•: Benevolent Fund Foundation General Purposes Fund 500,000 (50, 681J 50.681 500,t)00 864,517 29,574 (4,554) (59, 788) 829, T49 R••trlctod Fund•: Reslrlcled Income NT Learnlng NT StudiolNew Work NT Gèneral Purp08e 10.000 31,093 217 287,372 (10,570) fT,349) (51) {5,936) 570 1,412.875 8,643 897,687 (96.496) (673) (T7,950) 1,340. 123 8, 136 1, 101, IT3 Total Fund• 8 306 798 7 594 744 D•¥lgn•l•d Fund• The Tru8le88 consider Ihal a fund of £1,000.000 ra 8uffKlénl to meet1Skely on-90ing benevol8nl applicatns. An amount equlv81ent lo that paid out in grants is transferred from the G8ner81 Fund each year. which was £42,182 in year12019120.' £50.6811 plus a Iransfef of £500.000 lo increase ihe Benevolent Fund lo £l,000.000. The Foundation General Purpos6 sub-fund has received an alloc81ion of th8 nel gain$ on investrnenl in year. The total expenditure wa8 £5,005 which was in respect of investment mana9omenl ¢o$ls. R•strlct•d Funds NT L•arnlng •ub fund The balance on the NT Leaming sub-fund represents the brought forward balance and an allocation of the net losses on Investment In year. NT Productlons. NT Premlg08, NT StudlolNow Work and NT General Purpose sub fund8 Tho80 funds represent legaGy gifts reGelved in yaar and an allocallon of the net lo$$tr$ on investment in year. 24
ROYAL NATIONAL THEATRE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For the y8ar ended 31 March 2021 13 ANALYSIS OF ASSETS BETWEEN FUNDS YEAR ENDED 31 IAARCH 1021 Unrestricted Funds ReStrted Fund8 Total Funds Investments A8881 Current As8018 Current Ll8blllti88 6,151,285 11,758,493) 134.133 4.358.659 3,084,157 1.829,873 3,670,884 1,243.146 9,235,442 71,380 3,705,017 5.601,805 YEAR ENDED 31 MARCTrI 2020 Unroslrt¢led Funds Reslrfcfed Funds Total Funds Investments Assets Current A$8gls Cufr8nl Llabilllle8 5,312.040 (104,804) 61,894 0.145.342 2,295,890 156,640 f3,098 2.449.432 7,607,930 51.836 (64,992) 7.594,774 14 TRUSTEES REMUNERATION & EXPENSES Trustees have not recelved any rgmuneration or b8neflts or IrKurr8d any expenses for thelr Jgrvlce lo th8 Foundatknn In the year12019120'. nill. 15 RELATED PARTY TRANSACTIONS There have not been any related party tran8actlon8 In the year12019120.' nlll 25