The Royal Ballet School Endowment Fund Annual report and financial statements for the year ended 31 August 2023 Charity Registration No. 285766
The Royal Ballet School Endowment Fund Reference and administrative information TRusfEES Kate Bolsover Tom Clementi Richard Cunis Menna McGre8or Zita Saurel KÈnneth Steele SECRETARY Pipp3 Adarnson PRINCIPAL AND REGISTERED OFFICE 46 Floral Street Covent Garden London WC2E 9DA AUDITOR Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW BANKERS Barclays Bank plc Education Team Level 28 Churchill Place London E14 5HP FUND MANAGERS Fundsmith LLP 33 Cavendish Square London WIG OPW Ruffer LLP 80 Victoria Street London SWIE 51L Troy Asset Management Limited Brookfield House 44 Davies Street london WIK 5JA CHARITY REGISTRATION NUMBER 285766 Poge I
The Royal Ballet School Endowment Fund Report of the Trustees The Trustees submit their report and the audited financial statements of The Royal Ballet School Endowment Fund l-the Endowment Fund- or-the Charity'l for the year ended 31 Au8USt 2023. STRUCTURE, GOVERNANCE AND MANAGEMENT CONSTITUTION AND OBJEcrs The Royal 8allet School Endowment Fund 15 3 registered charlty (number 2857661 and was established under a Definitive Trust Deed dated 9 June 1982. The income and asset5 of The Royal Ballet School Endowment Fund (the -Ch8ritf l are used to provide funding and facilities for students at The Royal Ballet School 1.the School"). In particular: Scholarship5, bursaries and financial support to students who would not otherwise be able to attend the School. Suppckrt 15 provided to full tirne students and As50C4ate students. Grant5 to students at the School to pay for items not covered by fee support. For example uniform costs, ballet shoes, travel to and from home and extra curricular adivities. Student prizes. Expenditure on improvement5 lo facilties as well a5 the repair and maintenance of buildings. To support the School's archive. To 5UPPO¥t with the investment in new choreography and international tour5. To fund student and teacher exchange programmes Any incomo not spent In the year is carried forward and held in the Charity s reserves and used to ?5SlSt In the funcling of the School's future development programme. TRUSTEES The re5ponsiblllty for the management of the Charity is vested In Its Charity Trustees. Trustees are nominated by it5 connected charity. the Royal Ballet School and appointed and removed by the existing Board of Tru5tee5. The Trustees in office during the year and to the date of this report were as follows= Kate Bolsover (appointed 29 September 20231 jonathan Chenevix-Trench Iresi8ned 7 Novernber 20231 Tom Clementi Richard Cunis Menna McGregor Zlta Saurel Kenneth Steele (appointed Chair of Trustees on 7 November 20231 It is the poliry of the Trustees is to ensure that they understsnd their responsibllitie5 and duties. Tralning needs are considered from time to time and appropriate support is provided as necessary. The Trustees meet periodically, usually three times a year, to review grant applications, futuie Spending needs and investment strategy and performance. The Trustees liaise with the Executive Team of the School to ensure a clear under5tandinE of the future financial needs of the School and its Students. The Fund Managers provide the Trustees with regular reports on investment performance and they also regularly attend board meetings. To discharge thelr functlons more effectively, the Trustees delegate certain administrative aspects of the dav to day management of the Charity to the School. The frustee5 are aware of the Charlty Governance Code which lays out the principles and recomrnended practice for good governance within the sector. The Trustees are satisfied that the charity applies the Poge 2
The Royal Ballet School Endowment Fund Report of the Trustees principle5 of the code within Its current Governance arrangements. OBJECTIVES AND AcfiviTIES, ACHIEVEMENTS AND PERFORMANCE Each year the Trustees consider application5 from the School to support students enrolled in full-time courses and the As50C13tes Programme with bursaries and scholarships,. in particular, the Charity supports exceptional international students at White Lodge and Upper School who show the potential to become vocational classical ballei dancers. The Endowment Fund provides an annual grant award to the Royal Ballet School tts support the maintenancè and care of its archive, a resource that is available publicly online and in-person by appointment. Appllcatlons for one-off grants to support individual projects are considered on a case by case ba515. The Trustees work with three. carefully chosen fund managers to maximi5e investment returns for the charitv. The long term objective for each fund manager is to protect capital and deliver a return of RPl+3%. In settlng our objectives and planning the activities. the Trustees have given careful consideratlon to the Charity Commission's general guidance on public benefit. The Endowment Fund has continuÈcl to make grants to students of the School and to the School itself. GRANT MAKING POLICY The Royal Ballet School Endowment Fund welcomes annual grant applications *or the followlng.. Full-time student bursaries Associate student bursaries Grants towards the running of the School's archive. Annual prize awards Trustees will consider applications for single awards for individual projects. When considering these applications. Trustee5 will make due reBard to: l. The lon8er term impact of the project on the School and its students. Whether the applicant has approached other donors. Cash flow implitations on the Endowment Fund and its investments. Whether there are specific restricted fund5 and finances available to support the request. There is no cap on the value that may be applied for and each appliration will be considered on its merits. Trustees require a higher level of detail for larger. one off grants than annual awards. Trustee5 may require meeting with representatives of the School and this will be advised on a case by case basis. When considering Brants award5, Trustees take into consideration the recent fund manager performance and any significant valuation changes or market events. PUBLIC BENEFIT The Endowment Fund remains committed to the alm of providing public benefit in accordance with it5 foundin6 principles. Following charity legislation, the Endowment Fund reports that it has carried out the charitf s purposes for the public benefit. The School is open to any student who has the potential to become a classical ballet dancer re8ardless of their familvs financial means. The Endowment Fund provides support to these students In the form of finan081 Puge 3
The Royal Ballet School Endowment Fund Report of the Trustees asslStan¢e and training facilities. FINANCIAL REVIEW The full financial results are shown on page$ 11 to 26 of these financial statements, Incoming resources were £764.00012022: £186.0001. As well as investment income, the Endowment Fund benefited from several legacies totalllng £339.00012022.. £7.0) and a donation for £200,000 to set up the Aud Jebsen Scholarship Fund. Expenditure totalled £786,00012022.. £225,000) with grants of £575,00012022.' £29.5001. As well as an annual grant award of £30.00012022= £29,500) to support The Royal Ballet School's archive, £so5,OI2022. £nill was awarded to full-tirne students and a fuither £40.000 to Associate student512022.' £nill. The TIu5tee5 coritinued io monitor the performance of the fund managers c105ely and the weighting of investments between each portfolio is discussed at every meetlng. The total net loss In the portfolic* was £251,00012022.' £548.0(x)l. Funds held with Troy Asset Management declinèd by 0.29%. Ruffer suffered the greatest loss with the value 6.14% down year on year. Fundsmith investments grew by 6.43%. In the year, Trustees moved the value of the total permanent endowment funds from Fundm51th's Accurnulation Fund to Fundsmith'5 Income Fund. The change ensures that dividends are paid in cash to the equivalent name restricted fund, rather than added to thè accumulation fund. Whlle unrestricted and endowment funds grew due to income in the year, total reserves fell to £28,403,000 12021-. £28,679,0001. FUNDS AND RESERVES POLICY The Charity has a number ol endowment and restricted funds, the use of which is Ilmlted a5 specified bv donor5. Endowment funds of £6,865,00012022.' £6.701,0001 are held as investments to maintain the capital. and income is to be spent on charitable activity according to the conditions the donor ha5 8iven. The Charity has ljoth pemianent endowments and expendable endowrnents.. expendable endowments permit capital to be spent as well as return5. Resiricted funds of £6,822.00012022.. £7,431,000) are subjert tts the specific restrlctèd conditions imposed bv the donor. Details of these fund5, the movements on the funds and the purposes for which they were glven are shown in Notes 11 and 12, respectively. The trustees have designated £1,777.000 of unrestrithed fund5 of £14,716,00012022.' £14,547,000), from which scholarships, financial support and facilities grants may be provided. The balante of £12,939.000 represents the Charity's general or flee reserves. The Trustees receive regular updates from the Royal Ballet School on potential future requests. The Trustees place funds not immediately required for expenditure with the Endowment Fund's fund marbagers for investment. The Trustees, reserves policy Is to continue to grow thè Charity's funds in order for it to provide the SchcTrol and its students with the resources needed both now and in the future. It 15 the Charitv's aim to support the School in sustaining and enhancing the quality of the education provided and to ensure that Students of Ilmited means can bènefit from the world class trainin8 proided by The Royal Ballet School. Pt7ge 4
The Royal Ballet School Endowment Fund Report of the Trustees INVESTMENT POWERS, POLICY AND PERFORMANCE Troy Asset Management Limited, Ruffer LLP and Fundsmith LLP manèged the Endowment Fund's investment portfollo during the financial year. with the Investment strategy of protecting capital and providing a conslstent long term return. This strate8y means that, on the wholè, return5 on investments outperform the rrarket in difritult times but do le55 well than the market in periods of market growth. The Trustees continue to measure the performance of the portfolio regularly against the agreed target of 3% over RPI over a rollin8 five-year perlod. Any paid dividend income frorn the investments in the permanent endowment funds are transferred to restricted income funds to be expended. RISK MANAGEMENT The Tru5tee5 are responsible for the management of the risks faced by the Charity. Detailed consideration of risk is cariied OLJt by the Trustees in consultation with the School's Executive Leadership Team and Board of Governor5. Key controls used by the Trustees to identify and assess ris durin@ the year include.. The formal proeramme of risk assessments and steps taken to mStlgate those risks identified. Comprehensive strateglc planning, budgeting and management accounting. Established organisational structure and lines of reporting. Formal authorisation and approval levels. The most significant risk identified relates to the value of the investment portfolio, the Income from which 15 used to finance the Endowment Fund'5 activlties. Throu8h the rlsk management protesses above, the Tyustees anticipate that Major risks will be identified and, s far as practitable, adequately mitigated. It IS Tecognised that SY5tem5 can only provide reasonable, but not absolute, assurance that major risks have been adequately managed. FUNDRAISING Fundraising is a very modest parl of the Charity's actlvlties and the focus Is to raise funds through legacies. Supporters of the connected charity, The Royal Ballet School are asked to consider leaving a 8ift in their will to the Charity. There are no professional fundraising organisations used and occasional fundraising support 15 provide(J by the Development staff of he Royal Ballet School. The Charity has not subscribed to the Fundraising ReEulator but adheres to the Code tsf Fundraising Practice when undertaking fundraising activity. There were no complaints received by the Endowment Fund In relation to fundraising activity. The Endowment Fund takes it5 responsibllity to anyone who might be vulnerable very seriously and this will continue to be considered in the Endowment Fund's approach to fundraising activity. PLANS FOR FUTURE PERIODS Trustees have reviewed the strategic plans of The Royal Ballet School with a view to estimating longer-term grant requirements. Trustees have met with the School's Executive Leadership Team to discu55 future needs. Applications generally fall into two categories,. annual requests lor the support of students and the archive and one-off grants for larger-scale projects. Understanding the Schotsl's five-year plan allows Trustees to make appropriate investment declsions. The Trustees interhd to continue to make grants to a55lSt current and future beneficiaries. The Trustees are mindful of the uncertainty surrounding the Departrnent for Education's fundlng of The Royal Ballet School. Ihe Page 5
The Royal Ballet School Endowment Fund Report of the Trustees
potential changes to VAT and business rates for independent schools, the impact of current cost of living crisis on students and their families.
The Endowment Fund continues to develop its strategy of growth. The achievement of this aim is dependent on future fund raising and the performance of the Endowment Fund's investment portfolio. Trustees will continue to review the weighting of investment between fund managers investment fundss and the fund managers approach during this period of financial turmoil.
With the arrival of the Charities Act 2022, the Trustees intend to review the number of individual funds held within the Charity and the various restrictions, with the aim of simplifying the administration of the Charity and maximising the benefit of grant awards.
This report was approved by the Board of Trustees on 19 March 2024
Trustee
46 Floral Street Covent Garden London WC2E 90A
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The Royal Ballet School Endowment Fund Statement of Trustees, responsibilities in the preparation of financial statements STATEfvIENT OF TRUSTEES, RESPONSIBILITIES The Trustees are responsible for preparing the Trustees. Anrtual Report and the Financial Statements In accordance with applicable law and United XinBdom Generally Accepted Accotjnting Practice Iunlted Kingdom Accountin@ Standard51. The law, applicable to Charities in England and Wales, requires the Trustees to prepare financial Statements for each financial year which give a true and falr view of the state of affair5 of the charlty and of the incoming resovrces and application of resources of the charity for that period. In preparing these financial statements, the Trustèes are required to.. select suitable accounting policies and then apply them consistently observe the methods and principles in the Charities SORP rnake judgments and estimates that are reasonable and prudent State whether applicable accountlnE Standards have been lollowed, subject to any material departures disclosed and explained in the financial statements prepare the financial statements on the goinE concern ba515 unless it is Inappropriate to presume that the charity will continue in business The Trustees are responsible for keeping adeq¢Aat& accountlng records that are sufficient to show and explain the Charity's transaction5, disclose with reasonable accuracy at any time the financial position of the Charitv and enable them to ensure thtt the financial statements comply with the Charities Act 2011, the Charities (Accounts and Report51 Regulations 2008 and the provisions of the charity's constitution. They are also responsible for 5afe8uardinB the a55ets of the charity and hence for taking reasc>nable steps for the prevention and detection of fraud and other irregularities. Page 7
Royal Ballet School Endowment Fund Auditor's Report For the year ended 31 August 2023 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE ROYAL BALLET SCHOOL ENDOWMENT FUND OPINION We have audited the flnan¢ial statements of The Royal Bèllet School Endowment Fund I'the charity'l for the vear ended 31 August 2023 which comprise the Statement of Financial Activities, Balance Sheet. Statement of Cash Flows and note5 to the financial statements, includrng significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reportine Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practicel. In our opinion the financial statement5'. give a true and fair view of the state of the charitvs affairs as at 31 August 2023 and of its income and eKpenditure, for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Prartice; and have been prepared in accordance with the requirements of the Charities Act 2011. BASIS FOR OPINION We conducted oui audit in accordance with International Standards on Auditing IuKI115As IUKII and applicable law. Our responsibilities under those standards are furlhei described in the Auditorf5 responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance wlth the ethical requirements that are relevant to our audit of the fin3ncial statements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical re5pon5ibilities in accordance with these requirement5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a ba515 for our opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial statements. we have concluded that the trustee's use of the going concern b35is of accounting In the preparation of the financlal statements is appropriate. Based on the work we have performed. we have not identified any material uncertainties relatirb8 to events or conditlons that, individually or collectively, may cast significant doLJbt on the charity'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 descrlbed in the relevant sections of thls report. OTHER INFORMATION The trustees are responsible for the other information contained wlthin the annual report. The other Information cornprise5 the information Sncluded in the annual report. other than the financi31 statements and our auditorfs report thereon. Our opinion on the financial statement5 does not cover the other information an(S, except to the extènt otherwise explititly Staled in our report, we do not express any form of assurance conclusion thereon. Our respoTrnsibility is to read the other information and. in doing $0, consider whether the other information Is materially inconsistent with the financial statements or our knowled8e obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparenl m3teTial mi55tatements, we are required to determine whether this gives rise to a material misstatement in the financial statements thèmselves. If, based on the work we have performed, we conclude that there is a Page 8
Royal Ballet School Endowment Fund Auditor's Report For the year ended 31 August 2023 material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. MAThERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following matter5 in relatlon to which the Charities (Aceounts and Report51 Regulations 2008 requires us to report to you if, in our opinion.. the informatlon given in the financial statements is inconsislent in any material respect with the trustees, report,. or Sufficient and proper accounting records have not been kept by the charity.. or the financial statements are not in agreement with the accounting records and returns.. or we have not received all the information and explanations we reqvire for our audit. RESPONSIBILITIES OF TRUSTEES As explained more fully in the trustees. responsibilitle5 Statement Set out on page 7. the trustees 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 trustee5 determine is necessary to enable the preparation of financial statements that are free from materlal misstatement. whether due to fraud or error. In preparing the fln3ncial statements. the tru5tee5 are responsible for assessing the charity's ability to continue as a going concern, disclosin& as applicable. matters related to going concern and using the going concern basis ol accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternatlve but to do so. AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OFTHE FINANCIALSTATEMENTS We have been appointed as auditor under sectlon 151 of the Charities Act 2011, and repo¥t in accordance with the Acts and relevant regulations made or havin8 effect thereunder. Our objective5 are to Obtarn reasonable assurance about whether the financial statements 35 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 hi8h level tsf assurance, but is not a guarantee that an audit conducted In accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregète, they could reasonably be expected to inlluence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances ol non-compliance with law5 and regulations. We desiBn procedure5 in line with OUT responsibilities. outlined above, to detect material misstatements in respect of Irregularities, including frèud. The extent to which our procedure5 are capable of detecting irregularities, Including fraud Is detailed below. A further description of our responsibilities for the audll ol the financial statements is located on the Financial ReportinB Courbcil'5 website al.. www.frc.or .uk ayditorsres onsibllifies. This description forms part of our uditor's report. EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGUL4RITIES, INCLUDING FRAUD Irregularities, including fraud. are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statement5 from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaininE audit evidence sufficlent and appropriate to provide a basi5 for our opinion. Poge 9
Royal Ballet School Endowment Fund Auditor's Report For the year ended 31 August 2023 We obtained an understanding of the legal and re8ulatory frameworks within which the charity operates. focusine on those laws and regtllations that have a direct effect on the determination of material amount5 and disclosures in the fSnancial 5tatement5. The laws and regulation5 we considered in thi5 Context were the Ch81ities Art 2011 t¢gether with the Charities SORP IFRS1021. We assessed the required tompllance wlth these laws and re8ulations as part of our audit pro¢èdures on the related flnancial statement Items. In addilion, we considered provisions of other law5 and regulations Ihat do not have a direct effect on the financial statements but compliance with which might be fundamental to the chariivs ability lo operate or to avoid a material penally. We also considered the opportunilies and incÈntives Ihat may exist within the charity for fraud. The laws and re8ulations we considered in ihi5 context for the UK operations were Geneial Data Protection Regulations IGDPRI. Auditing standards Ilmit the required audlt PToceclures to identify non-compllance with these laws and re8ulations to enquiry of the Trustees and other managetllent and inspection of regulatory and legal correspondence, if anv. We Identified the gTeatest rlsk of material impacl on the financial statements from irregularlties. Including fraud, to be within the override of controls by mana8ement. Our audit proceduTes to respond to these wisks included enquirie5 of management. and ihe Finance Committee about theSr own identification and assessment of ihe risks of irregularllles. sample testing on ihe posting of journals, reviewing accounting estimates for blases, reviewing regulatory correspondence wlth the Charsty Commi5510n and ¥eadin8 mlnutes ol meetings of those charged with 8overnancè. Owing to the inherent Ilmitatlons of an audit, there Is an unavoidable rlsk that we may not have detected some maiefial mi5Statements In the financial statements, even though we have properly planned and perlormed our audit in accordance with auditing standaids. For example. rhe further removed non-compllance with laws and regulations lirre8ularitiesl is from the events and iransactions ref7e£ted in the finan¢lal Statements, the less likely the Inherently limited procedures required by auditing Standards would identify it. In addition, as with any audit, there remained a higher rlsk of non-detection of irre8ularitie5, a5 these mav involve collusion, forgery, Intentional omissions, misrepresentations, or the override ol internal contro15. We are not responsible for preventlng non-complian¢e and cannot be expected to detert non-compliance wlth all laws and regulations. USE OF OUR REPORT This report is made solely to the charitV5 trustees, as a body, in accordance wlth Part 4 of the Charities IA¢count5 and Reportsl Regulations 2008. Our audit work has been undertaken so that we might statè to the charity's trustees 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 anyone other than the charity and the chaiity's trustees 35 3 body, for our audit work. for this report, or for the opinions we have formed. Crowè U.K. LLP Statutory Auditor London 22 April 2024 Crowe U.K. LLP is dwble forapwntrnenl as auditor oltho tharfly oiiiseW&'lityforaFvokntment as audrtor ola company under sectlcn 1212 of the Companles Act 2ti]6. Po9e 10
Royal Ballet School Endowment Fund Statement of Financial Activities For the year ended 31 August 2023 Unrestricted Funds £000 Endowment Funds £000 Restricted Fund5 £000 Notes 2023 £000 2022 £(K)O Income and endowments from". Donarions Investments 339 133 200 25 539 225 67 177 Total Incorne 472 225 67 764 186 Expendlture on., Raising funds Charirable artivities Governante costs 89 30 17 96 79 449 185 575 188 30 Total ejtpenditure 127 528 768 225 Net IncoMe/lexpendlturel 345 112 14611 141 1391 Transfers between funds Nei losses on investments 11761 52 11481 12721 14731 Net movemènt In funds 169 164 16091 12761 15121 Reconclllatlon of funds.. Total funds brought forward 14,547 6.701 7,431 28,679 29.191 Total fund5 carrled forward 14,716 6,865 6.82Z 28.403 28,679 The net incoming re59urces for the year arise from the Charity's continuing operations. The accounting policies and notes on pages 14 to 26 form part of these financial statements. Poge 11
Royal Ballet School Endowment Fund Balance sheet
to 31 August 2023
| Notes Fixed assets Heritage assets - ballet memorabilia 6 Investments 7 Total fixed assets Current assets Prepayments and accrued income Cash at bank Total current assets Liabilities - falling due within one year Accruals Connected charity creditor 8 Total liabilities Total net assets 9 The funds of the charity: Unrestricted funds General fund Designated funds Total unrestricted funds 10 Endowment funds 11 Restricted funds 12 Total charity funds |
2023 £000 32 27,564 27,596 5 811 816 (9) (9) 28,403 12,939 1,777 14,716 6,865 6,822 28,403 |
2022 £000 32 27,815 27,847 |
|---|---|---|
| 1,259 | ||
| 1,259 | ||
| (7) (420) |
||
| (427) 28,679 12,706 1,841 |
||
| 14,547 6,701 7,431 |
||
| 28,679 |
The financial statements on pages 11 to 26 were approved by the trustees and authorised for issue on 19/03/24 and signed on its behalf by:
Kenneth Steele Trustee
Kate Bolsover Trustee
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Royal Ballet School Endowment Fund Statement of cash flows 31 August 2023 ote 2023 £000 2022 Cash flow5 from operatlns activities: Net cash used by operatlng activities A below 11811 Cash flows fn)m InvestJnK artlvltles: Oividends and interest from investments Inierest receivable IReductionllAllocation of funds for investment5 211 14 11.3%) 176 Net cash provlded byllused Inl Investlng artlvltles 11,1711 181 Cash flows from finan¢ln8 a¢tlvitles: Receipt of endowment 539 Net cash provided by Investing adivitles 539 Change In cash In the reportln8 period 14481 Cash at the be85nnln8 of the year 1,259 1,250 Cash at the end of the year B below 811 1,259 Reconclllatlon of cash flows from operatlng a¢tlvltles: NoteA 2023 £000 2022 Nei income. frorn the staternent of finanoal activlties 12761 15121 Adjustments for= Losses on investments Dividends. interest and rent5 from Snve5tments Increase In debtors Increase in creditors 272 12251 473 11771 418 3S Net cash used In operating aclivltie5 11811 Analys15 01 cash Note B 2023 2022 Cash at bank and in hand 811 1,259 Poge 13
Royal Ballet School Endowment Fund Accounting policies BASIS QFACCOUNTING These financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. the Charities Act 2011 and the Staternent of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and RepublSt of Ireland IFRS 1021- effettive I january 2015. TRUE AND FAIR OVERRIDE The financial statements have been prepared to give a'true and fair. view and have departed from the Charities IAccounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view,. This departure has involved following Accounting and Reporting by Charities preparinB their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. The accounts are drawn up on the hlstorical cost basis of accountin& as modified by the revaluation of investments. The Royal Ballet School Endowment Fund is a PublTrc Benefit Enlity registered as a charity in England and Wales and was established under a Definitive Trust Deed dated 9 June 1982 (charity number 2857661. GOING CONCERN The Trustees have reviewed the current economic situation and the iwpact on the financial markets carefully with a view to managin8 the investment portfollo and the ability to fund future grants. Having reviewed the funding facilities available to the Charity together with the expected ongoing need frjr grants and the Charity's future projected cash flows, the Trustees have a reasonable expectation that the Charity has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the ChBrity's financial vlability. Accordingly, they also continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of AccountinÈ and Reportln8 Responsibilities on page 7. CRITICAL ACCOUNTING JUDGEMENT AND KEY SOURCE5 OF ESTIMATING UNCERTAINTY In the application of the accounting policie5, Tru5tee5 are required to make judgement, estimates and a5sumption5 about the carryin8 value of assets and liabilities that are not readily apparent from other sources. The estlmates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these e5timate5. The estimate5 and underlying a$5umption5 are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in whith the estimate is revised if the revision affects only that period, or in ihe period of the revision and future periods if the revisSon affected current and future periods. In the view of the trustees, no assumption5 concerning the fvture or estimation uncertainty affecting a55ets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next finantial year. The followinB accountinB policies have been applied conslstently in dealing with items which are considered rnaterial in relation to ihe Charity's financlal statements. INCOME Income Consists of donations, legacies and Investment income. All Income is accounted for when the Charitv ha5 entitlement, there 15 probability of receipt and the amount is measurable. Legacies are recorded when they are received. on receipt of finalised estate accounts or where there is sufficient evidence that the legacv will probably be received. Investment income 15 apportioned to unrestricted, endowment and restricted funds based on the values of the funds. The Income @enerated from permaneni endowment funds is apportioned to restricted funds for future expenditure. Po9e 14
Royal Ballet School Endowment Fund Accounting policies EXPENOITURE Resources expended are recognised in the period in which they are Incurred. Costs are allocated to the particular activity to which they relate. Grant5 payable are recognlsed when a constructive obllgatlon exists. Governance costs comprise cost5 Of runnin8 rhe Charity. HERITAGE ASSETS Heritage assets are valued at the t05t of purchase less any irnpairment in value over the period. Donated heritage assets have not been valued, as it 15 not practicable to obtain a valuation of unique a55ets. Heritage assets held are ballet memorabilia and are tangible fixed 3s5ets of historical and artistic importance held to advance the educational objectives ol the Charity and The Royal Ballet School. Where these assets are capitalised, depreciation is not charged because the assets h3ve a very long useful life and the estlmated residual value is not materially diflerent from the carrying amount. The asset5 are subject to an annual Impairment review by the Trustees and there w35 no reduction in the value of the herita8e assets during the year. INVESTMENTS Investments, includln8 bonds held as part OF an investment portfolio, are held at fair value at the Balance Sheet date, with Eains and losses being recognised within income and expenditure. FUNDACCOUNTING The charitable trust funds of the Charity are accounted for as unrestricted or restricted income, or as endowment capital, in accordance with the terms of trust imposed by the donors or any appeal to which they may have re5pc)nded. Endowment funds are further subdivided into permanent and expendable endowment funds. Unrestricted general funds comprlse the accumulated unrestricted surplu5 or deficit each year. Unrestrlctetj de51gnated luncjs are amounts put aside by the Trustees to follow the donors, preferences, although the Trustees have discretion on using these fund5. Permanent endowment funds consist of capital that Cannot be Spent. The Income earned on these funds is subject t0 Specific condltlons imposed by the donor% and is shown In restricted funds. Expendable endowrnent funds Consist of funds wherè the capital can be Spent, and the funds are subjeet to specSfS¢ conditions imposed by the donor5. Restricted funds are subject to specific restricted conditions imposed by the donors. Paid income from permanent endowments are held in these lunds and are resiricted by the conditions imposed on the permanent endow¥nent funds. FINANCIAL INSTRUMENTS Basic financial in5trumenls are inStlally recosni5ed at transaction value and subsequently measured at amortised value, except investments which are held at fair value. Financial assets held al amort15ed cost comprise cash èt bank and in hand, together with trade and other debtors. A specific provision is made for debts for which COVerabl11tV is in doubt. Cash at bank and in hand is defined as all cash held In instant access bank acccTrunts and used as working capital. Financial liabilities held at amortised cost cornprise all creditor5 except social security and other taxes and piovi5ions. Assets and liabilities held in foreign currenry are translated to GBP at the balance sheet date at an appropriate yearond exchange rate. Page 15
Royal Ballet School Endowment Fund Accounting policies DONATIONS 2023 2022 Le8acie5 Donations Permanent endowments 339 200 Total 539 2023 T¢)tsl 2022 Total 2 INVESTMENTINCOME Unrestricted Endowment Restricted Equities Cash 125 23 63 211 177 14 133 25 67 225 167 2023 Total 2022 Totsl 3 EXPENDITURE Unrestricted Endowment Restricted Investment Managemeni Cost5 89 17 79 185 188 2023 Total 2022 Total 4 CHARITABLE EXPENDITURE Unrestritted Endowment Restrltted Grants to students Grants to School 96 449 545 30 30 30 30 96 449 575 30 5 GOVERNANCE COSTS 2023 2022 Fee5 payable to the auditor for the statutory audit Page 16
Royal Ballet School Endowment Fund Notes to the financial statements for the year ended 31 August 2023 HERITAGE ASSETS The heritage assets of £32.00012022'. £32,000) consist of th@ cost of ballet memorabilia ol Margot Fonteyn who was a forrner alumna of the School. The purchase was made in the year 2000101 and the Trustees have carrled out an impairment review and there is no reduction in the value ol these assets. 7 INVESTMENTS 2023 2022 Market value brought forward New money invested Reinvested Sncome Proceeds received Mana8ernent char8es 27,815 28,301 206 175 11851 11881 27.836 28,288 Net Ilos5118ain on revaluation 12721 14731 Market value carried forward 27564 27,815 The investment portfolio is divided into the following classes.. Equities Fixed interest Index-llnked Credit and illiquid strate8tes Gold Forward foreign exchange Options Glorbal Fund5 Hedge funds Cash 19,804 1.454 3,025 19.916 4,762 1,137 237 1181 757 426 561 1325 583 441 295 27.565 27,815 Page 17
Royal Ballet School Endowment Fund Notes to the financial statements forthe year ended 31 August 2023 RELATED PARTY TRANSACTIONS The connected charity. The Royal Ballet School. has as its purpose the training and education of Students for a career as ballet dancers. Two of the Royal Ballet School Endowment Fund Trustees are also Trustees and overnors of The Royal Ballet School12022.. four). During the year the Endowrnent Fund provided grants to students and to the khool of £575,LK)012021.. £Nill. The 5thool has not recharged any sum for staff costs in either veèr. The Endowment Fund is not a debtor nor creditor of The Royal Ballet School at the balance sheet date12022.. £422.0001. There are no other related party transactions12022.. None). 9 ANALYSIS OF NET ASSE5T BY FUND Net Current Assets 807 Totsl Funds 2023 12,939 1,777 6,86S 6,822 Fixed A55ets 32 FUNDS: Unrestricted Designated Endowment Funds Restricted Funds Investments 12,100 1,777 6,865 6.822 32 27.564 807 28,403 Net Current Assets 832 Total Funds 2022 12,706 1,841 6,701 7,431 ANALYSIS OF NET ASSEST BY FUND 2022 Unre51ricted Designated Endowment Funds Restricted Funds Fixed Assets Investments 11.842 1.841 6,701 7,431 32 32 27,815 832 28.679 Puge 18
Royal Ballet School Endowment Fund Notes to the financial statements for the year ended 31 August 2023 10 UNRESTRICTED FUND5 Balance at31 Au8 20Z3 Balance at I Sept 2022 £000 Gains & Transfers £000 Income Expenditure £000 Éooo General fund Designated Sutton fund Designated GBL Wilson fund Designated GT Sindell fund Designated Dulcie Pamela Tilley fund Valarie Adams Award 12,706 729 821 17 456 1861 11371 12,939 716 776 17 1351 1171 250 245 23 24 14,547 472 11271 11761 14,716 8alan¢e at31 Aug 2022 £000 Balance 3t 15ept 2021 £000 Galns & Transfer5 UNRESTRICTED FLINOS 2022 Income £000 Expenditure £OOD £000 General fund Designated Sutton fund Designated G8L Wilson fund Designated ST Sindell fund Designated Dulcie Pamel Tilley fund Valarie Adarns Award 12,859 742 864 17 86 1911 11881 12.706 729 821 17 13SI 1141 254 24 250 24 14.760 99 11331 12191 14,547 The General Fund comprises of the accumulated unrestricted surplus or defi'cit each year The Sutton Scholarship Fund is a designated fund available to fund scholarships to the School but the requirements of the gift require It to be held as a separate fund with identifiable investments. The designated GBLWilson Fund provides funds for the School archive and library. The Fund a150 includes a collection of prints and lithoEraf)hs, received by way of gift, which have not been capitalised and included Sn the balance sheet as their value cannot be ascertained with reasonable certainty. The Trustees consider that the amounts involved are not material. The fund is being used to help with the costs of looking after the School Archrve The GT Sindell Fund is de5ign3ted to fund scholarships to The Royal Ballet School. The fund is used when the School requires funding for scholarships. The Dulcie Patnela Tilley Fund is designated to fund exchange programmes with foreign ballet schools, international ballet tours, performances and Student scholarshlps. The Trustees of the estate request that the legacy be applied where possible in the above order or priority. This fund Ss therefore used for exchange pro8ramme5 as reoulred by the School. • The Valarie Adams Award is a designated fund to provide an annual student award in ValeriÈ Ad3rn5 name. Poge 19
Royal Ballet School Endowment Fund Notes to the financial statements for the year ended 31 August 2023 11 ENDOWMENT FUNDS Balance at31 Aug 2023 Balance at I Sept 2022 Gains & Transfers Income Expenditure Permanent endowment funds Askew Scholarship Fund Brian Shaw Memorial Fund Usherwood Fund J Edward Conway Fund McmlIan Memorial Fund Calleva Foundation Fund Morrls Kemp Foundation Fund John Dorrick Brookes Fund Lynn Seymour Award Rob Wallace Scholarship Fund Prince of Wales Bursary Fund Charles Hollway Bursary Fund The Madeleine and Timothy Plaut Bursary Fund 277 95 57 285 98 59 112 52 816 455 loo 109 51 793 442 23 13 97 26 997 27 28 1.025 144 831 140 808 23 63 65 3,955 114 4.069 Expendable endowment funds Ethel Rose Hart Fund Joseph Lockwood Fund Nellie Florence Watson Fund Aud Jebsen Scholarship Fund 560 2.090 96 181 1431 1311 545 2,019 65 167 17 1451 202 141 2.746 225 11131 1621 1.796 6.701 225 11131 52 6,865 PiJge 20
Royal Ballet School Endowment Fund Notes to the financial statements for the year ended 31 August 2023 Balance at 31 Aug 2022 Balance at I Sept 2021 Gains& Transfers ENDOWMENT FUNDS 2022 Income Expenditure Permanent endowment funds Askew Scholarship Fund Brian Shaw Memorial Fund Usherwood Fund J Edward Conway Fund Mcmillan Memorial Fund Calleva Foundation Fund Morri5 Kemp Foundation Fund John Dorrick Brookes Fund Lynn 5eymtsur Award Rob Wallace Scholarship Fund Prince of Wales Bursary Fund Charles Hollway Bursary Fund The Madeleine and Timothy Plaut Bur5a¥y Fund 284 97 58 iii 277 95 57 109 51 793 52 811 452 99 26 1.020 144 1131 442 97 26 997 140 1161 826 1131 64 63 4.044 123 1661 3.955 Expendable endowment funds Ethel Rose Hart Fund Joseph Lockwood Fund Nellie Florence Watson Fund 570 2,127 97 $60 2,090 96 13 1161 1341 2,794 17 1201 1451 2,746 6.838 17 1431 6,701 Permanent èndtswment funds Permanent endowment funds are capital funds where the donor has speclfied that the capital is Invested to provide in¢orne and only the income can be spent. This incorne is accumulated separately in restricted funds as shown in Note 11 with the following r&striction5'. The Askew Scholarshlp Fund 15 available to fund bursarie5 and scholarships to the School but is required to be held in a separate fund with i(Jenilfiable investments The Brian Shaw Memorial Fund can be used to fund bursaries and scholarships to the School The Usherwood Fund is to prowde an annual bursary or scholarship to the khool The J Edward Conway Fund is to fund Birmin8ham associates The Macmillan Memorial Fund for Young Dancer5 IS to be invested and the income is to be used annually as a bursary for a male student to help him with his Studies in memory of Sir Kenneth Macmillan The Calleva Foundation Fund is to be invested and the income generated is to provide an annual scholarship for a pupll of the Upper School The Morris Kemp Foundation Fund is to be invested and used to provide Scholarships and bursaries for one or two pupils who woulij otherwise not be able to afford to attend the School Page 21
Royal Ballet School Endowment Fund Notes to the financial statements for the year ended 31 August 2023 Income from the John Oorrick Brookes Fund is available to fund scholarships for a deserving female student of the Upper School The Lynn Seymour Award fund5 an 8nnu31 prize for Upper School students. The Rob Wallace Scholarship Fund was set up from generous donations to celebrate the achievements of School Governor Rob Wallace on his retirement. The fund pay5 for an annual scholarship The Prince of Wale5 Bursary Fund wa5 Set up on the occasion of H.R.H Prince of Wales, 701h blrthday. Generous donors made gifts to the fund to provide a named bur53ry to a student of The Royal Ballet S(hool. The Charles Hollway Bursary Fund is to provide a named bursary to a student of The Royal Ballet School. The Madeleine and Timothy Plaut Bursary Fund Is to provide a named bursaryto a studentof The Royal 8allet School Expendablè endowment lunds The capital element of these funds can be expended, so the fund balances represent the capital donation and subsequent Income and related gains. which can all be expended The Ethel Rose Hart Fund is to provide one annual scholarship of £5,000 awarded for excellence in ballet and shall be called the Ethel Rose Hart Scholarshrp Th& joseph Lockwood Scholarship fund is available to provide an annual scholarship to the Upper School The Nellie Florence Watson Fund is avail3ble to provide funding for one student per annum The Aud Jeb5en Schola¥ship provides an annual scholarship for a student of The Royal Ballet School Upper School until the academic 2037138 when any residual funds will be used lor the 8eneral lurtherment of the charity's purposes. Po9e 22
Royal Ballet School Endowment Fund Notes to the financial statements forthe year ended 31 August 2023 12 RESTRICTED FUNDS Balance at31 Aug 2023 Balance at I Sepr 2022 Gains & Transfers Income Expenditure Restricted income from permanent endowment fund5 Askew Scholarship Fund Brian Shaw Memori31 Fund Usherwood Fund J Edward Conway Fund Mcmillan Memorial Fund Calleva Foundation Fund Morris Kemp Foundation Fund John Dorrick Brookes Fund Lynn Seymour Award Rob Wallace Scholarship Fund Prlnce of Wales Bursary Fund Charle5 Flollway Bursary Fund The Madeleine and Timothy Plaut Bursary Fund Iiii 141 127 1361 91 15 15 1161 1151 197 1961 106 Restrkied fund5 Dame Margot Fonteyn Fund Hines Fund John Lyons Charity Fund Upper School Maintenance Fund Noreen Mummery Fund Elizabeth Mills Fund Partnership & Access Fund White LodÉe Appeal Fund Royal Ballet School Fund Ashton Award Captain & Mr5 John Moore Award 765 301 1261 1271 1161 161 730 270 1,730 1,253 122 625 1.127 1,279 18 15 1371 1201 L697 924 13171 90 614 1.106 1254 18 17 141 1131 1241 1301 io 13 17 7.238 62 14321 11481 6.720 7,435 67 15281 11481 6,826 Poge 23
Royal Ballet School Endowment Fund Notes to the financial statements for the year ended 31 August 2023 Balance at31 Aug 2022 Balance ai I Sepi 2021 Gains & Transfers RESTRICTED FUNDS 2022 Income Expenditure Restricted income from permanent endowment funds Askew Scholarship Fund Brian Shaw Memorial Fund Usherwood Fund J Edward Conway Fund Mcmillan Memorial Fund Callev8 Foundation Fuhd Morris Kemp Foundation Fund john Dorrick Brooke5 Fund Lynn Seymour Award Rob Wallace Scholarship Fund Prince of Wales Bursary Fund Charles Hollway Bursary Fund 127 127 15 15 168 27 193 Restricted funds Darne Margot Fonteyn Fund Hines Fund Boscawen Fund John Lyons Charity Fund Upper School Maintenance Fund Noreen Mummery Fund Elizabeth Mi115 Fund Partnership & Access Fund White Lodge Appeal Fund Royal Ballet School Fund Ashton Award Captain & Mrs John Moore Award 777 306 61 765 301 121 1,767 1,273 123 635 1,146 1,301 18 1311 1201 1,731 1.253 122 625 1,127 1,279 18 17 iioi 1181 17 7.425 43 1491 11801 7,239 7,593 70 1491 11821 7,432 Restrlcted funds • The Dame Margot Fonteyn Fund can be applied to advance the education of children. young people and Student5 of the School The Hine5 Fund is to provide bursaries to the School for children coming from the West Countrv The Bos¢awen Fund is used for the exchange of 5tudent5 and teachers between the School and the Royal Danish 8allet School. At the request of the Irustee5, this fund has been transferred to the General Fund and 11 restrittions discharged. The John Lyons Charity Fund Is available to fund bursarie5 for students from b)ine Specific London Boroughs Poge 24
Royal Ballet School Endowment Fund Notes to the financial statements for the year ended 31 August 2023 The Upper School Maintenance Fund 15 available to fund Royal Ballet Upper School premises and boardlng accommodation The Noreen Mumme¥y Fund provides bursa¥ies to students of the School which shall be known as Sopwith Bursaries The Elizabeth MSlls Fund was set up from a le6acy left by the late M5$5 Mi115 and is to fund a scholarship or bursary for a student who would not otherwise be able to 3ttend the School. The supsJ)rt wlll be known as the Elizabeth Florence May Mills Bursary The Partnership & Acces5 Fund is to support the School's Partnership and Access programme through which children at state schools of both primary and secondary School age are given acce55 to classical ballet through the School's Students and network of teaching expertise The White Lodge Appeal Fund is to support the acquisttion of a new 100 year lease at White Lodge and redevelop the land and buildings at White Lodge. The Royal Ballet School Fund is to further the charitable oblecrives of The Royal 8allet School. The Ashton Award Fund provides an annual p¥ize for a student or students of The Royal Ballet Upper School. The Captain and Mrs john Moore Award Fund provides three annual prizes of £100 for students in their first year of the degree course. • The remaining restricred funds represent the expendable incorne element of the permanent endowment funds shown in note 10. This income is restritiÈd to expenditure as shown in that note 13 TAXATION As a registered charity, The Endowment Fund is potentially exempt from tax3tion of income and gains falling withill Sections 466 to 493 of the Corporation Tax Act 2010 and section 521 to 536 01 the Income Tax Act 2007, Poge 25
Royal Ballet School Endowment Fund Notes to the financial statements for the year ended 31 August 2023 13 STATEMENT OF FINANCIAL AcfiviTIES 2022 unstrICted Funds £000 Endowment Funds £000 Restrlcted Funds £000 2022 £000 Income and endowments from-. Donations Investments 91 17 69 177 Total intome 99 17 70 Expenditure on: Raising funds Charitable acrivrcies Goveinance costs 96 30 43 49 Total expendltuie 133 43 49 225 Net In¢ome/lexpendlturel 1341 1261 21 1391 Transfers between funds 61 Net Ilossesl/g3ins on investments 12401 Iiiii 11221 14731 Net movement in fvnds 12131 11371 {1621 15121 Reconciliztron of funds: Total funds brought forward 14,760 6,838 7,593 29,191 Totsl fvnds Carried forward 14,547 6.701 7A31 28,679 Poge 26