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2024-08-31-accounts

The Royal Ballet School Endowment Fund

Annual report and financial statements

for the year ended

31 August 2024

Charity Registration No. 285766

The Royal Ballet School Endowment Fund Reference and administrative information

TRUSTEES

Kate Bolsover Tom Clementi Richard Cunis Menna McGregor Zita Saurel Kenneth Steele

SECRETARY

Pippa Adamson

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 W1G 0PW

Ruffer LLP 80 Victoria Street London SW1E 5JL

Troy Asset Management Limited Brookfield House 44 Davies Street London W1K 5JA

CHARITY REGISTRATION NUMBER 285766

Page 1

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 (“the Endowment Fund” or “the Charity”) for the year ended 31 August 2024.

STRUCTURE, GOVERNANCE AND MANAGEMENT

CONSTITUTION AND OBJECTS

The Royal Ballet School Endowment Fund is a registered charity (number 285766) and was established under a Definitive Trust Deed dated 9 June 1982.

The income and assets of The Royal Ballet School Endowment Fund (the “Charity”) are used to provide funding and facilities for students at The Royal Ballet School (“the School”). In particular:

Any income not spent in the year is carried forward and held in the Charity’s reserves and used to assist in funding the School’s future development programme.

TRUSTEES

The responsibility for the management of the Charity is vested in its Charity Trustees. Trustees are nominated by its connected charity, the Royal Ballet School and appointed and removed by the existing Board of Trustees.

The Trustees in office during the year and to the date of this report were as follows:

Kenneth Steele Chair of Trustees Kate Bolsover Tom Clementi Richard Cunis Menna McGregor Zita Saurel

It is the policy of the Trustees is to ensure that they understand their responsibilities and duties. Training 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, future spending needs, and investment strategy and performance. They also liaise with the School's Executive Team to ensure a clear understanding 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 their functions more effectively, the Trustees delegate certain administrative aspects of the charity's day-to-day management to the School.

The Trustees are aware of the Charity Governance Code, which lays out the principles and recommended practices for good governance within the sector. They are satisfied that the charity applies the principles of the code within its current Governance arrangements.

Page 2

The Royal Ballet School Endowment Fund

Report of the Trustees

OBJECTIVES AND ACTIVITIES, ACHIEVEMENTS AND PERFORMANCE

Each year, the Trustees consider applications from the School to support students enrolled in full-time courses and the Associates Programme with bursaries and scholarships.

The Endowment Fund awards the Royal Ballet School an annual grant to support the maintenance and care of its archive. This resource is available publicly online and in person by appointment.

Applications for one-off grants to support individual projects are considered case-by-case.

The Trustees work with three carefully chosen fund managers to maximise investment returns for the charity. The long-term objective for each fund manager is to protect capital and deliver a return of RPI + 3%.

The Trustees have carefully considered the Charity Commission's general guidance on public benefit in setting objectives and planning the activities.

The Endowment Fund has continued to make grants to students of the School and the School itself.

GRANT MAKING POLICY

The Royal Ballet School Endowment Fund welcomes annual grant applications for the following:

Trustees will consider applications for single awards for individual projects. When considering these applications, Trustees will make due regard to:

  1. The longer-term impact of the project on the School and its beneficiaries.

  2. Whether the applicant has approached other donors for support.

  3. The cash flow implications for the Endowment Fund and its investments.

  4. Whether specific restricted funds and finances are available to support the request.

There is no cap on the value that may be applied for, and each application will be considered on its merits. Trustees require a higher level of detail for larger, one-off grants. In some cases, Trustees may require a meeting with school representatives before deciding on a grant award. This will be advised on a case-by-case basis.

Trustees consider recent fund manager performance and any significant valuation changes or market events when reviewing grant applications.

PUBLIC BENEFIT

The Endowment Fund remains committed to providing public benefit in accordance with its founding principles. Following charity legislation, the Endowment Fund reports that it has carried out the charity’s purposes for the public benefit.

The School is open to any student who has the potential to become a classical ballet dancer, regardless of their family’s financial means. The Endowment Fund provides support to these students in the form of financial assistance and training facilities.

Page 3

The Royal Ballet School Endowment Fund Report of the Trustees

FINANCIAL REVIEW

The full financial results are shown on pages 11 to 26 of these financial statements. Incoming resources were £357,000 (2023: £764,000). In addition to investment income, the Endowment Fund benefited from several legacies totalling £82,000 (2023: £339,000).

Expenditure totalled £787,000 (2023: £768,000) with grants of £578,000 (2023: £575,000). As well as an annual grant award of £30,000 (2023: £30,000) to support The Royal Ballet School’s archive, £508,000 (2023: £505,000) was awarded to full-time students and a further £40,000 to provide bursaries for Associate students (2023: £40,000).

The Trustees continued to monitor the performance of the fund managers closely and the weighting of investments is discussed at every meeting.

The total net gain in the portfolio was £1,849,000 (2023: £251,000 loss) of which £196,000 was realised gain. Funds held with Troy Asset Management grew by 7.6%. Ruffer grew by 3.3% and Fundsmith by 10.1%.

While grant awards exceeded the value of receipts, total reserves grew to £29,822,000 (2023: £28,403,000).

FUNDS AND RESERVES POLICY

The charity aims to support The Royal Ballet School in sustaining and enhancing the quality of the education provided and ensuring that students of limited means can benefit from the world-class training provided by The Royal Ballet School.

The Trustees’ reserves policy is to continue growing the Charity’s funds to provide the School and its students with the resources needed now and in the future. The Trustees are mindful of the requirement to balance the needs of both current and future beneficiaries, ensuring capital values are maintained while delivering a return on investment to fund grant awards.

The Trustees have designated £1,798,000 of unrestricted funds (2023: £1,777,000), from which scholarships, financial support and facilities grants may be provided. The balance of £13,871,000 (2023: £12,939,000) represents the Charity’s general or free reserves. The Trustees receive regular updates from The Royal Ballet School on potential grant requests.

The Charity has several endowments and restricted funds, the use of which is limited as specified by donors. Funds not immediately required for expenditure are placed with the Endowment Fund’s fund managers for investment. Endowment funds of £7,365,000 (2023: £6,865,000) are held as investments to maintain the capital value. Income is set aside to spend on charitable activity according to the conditions the donor has given. The Charity has both permanent and expendable endowments: expendable endowments permit capital to be spent alongside returns.

Restricted funds of £6,788,000 (2023: £6,822,000) are subject to the specific restricted conditions imposed by the donor.

Details of these funds, the movements on the funds and the purposes for which they were given are shown in Notes 11 and 12, respectively.

Page 4

The Royal Ballet School Endowment Fund

Report of the Trustees

INVESTMENT POWERS, POLICY AND PERFORMANCE

During the financial year, Troy Asset Management Limited, Ruffer LLP and Fundsmith LLP managed the Endowment Fund’s investment portfolio, with a strategy of protecting capital and providing a consistent long term return.

This strategy means that, overall, returns on investments outperform the market in difficult times but do less well than the market in periods of market growth. The Trustees continue to measure the portfolio's performance regularly against the agreed-upon target of 3% over RPI over a rolling five-year period.

Any paid dividend income earned from permanent endowment investment funds is immediately transferred to restricted income funds and made available for grant awards.

RISK MANAGEMENT

The Trustees are responsible for risk management. Detailed risk consideration is carried out by the trustees. Key controls used by the Trustees to identify and assess risks during the year include:

The most significant risk identified relates to the investment portfolio's value, the income from which is used to finance the Endowment Fund’s activities.

Through the risk management processes above, the Trustees anticipate that major risks will be identified and, as far as practicable, adequately mitigated. It is recognised that systems can only provide reasonable, but not absolute, assurance that major risks have been adequately managed.

FUNDRAISING

Fundraising is a very modest part of the Charity’s activities, with a focus on legacies and legacy pledges. Supporters of the connected charity, The Royal Ballet School are asked to consider leaving a gift in their will to the Charity.

No professional fundraising organisations are used. The Royal Ballet School's Development staff provides occasional fundraising support. The Charity has not subscribed to the Fundraising Regulator but adheres to the Code of Fundraising Practice when undertaking fundraising activity.

The Endowment Fund received no complaints regarding fundraising activity. The Endowment Fund takes its responsibility to anyone who might be vulnerable very seriously, and this will continue to be considered in its approach to fundraising activity.

PLANS FOR FUTURE PERIODS

Trustees have reviewed The Royal Ballet School's strategic plans to estimate longer-term grant requirements. In the coming months, Trustees will attend a meeting of The Royal Ballet School’s Board of Governors to ensure the longer-term strategic objectives of both charities are shared and aligned.

The Trustees intend to continue making grants to assist current and future beneficiaries. They are mindful of the uncertainty surrounding the Department for Education’s funding of The Royal Ballet School, changes to the VAT status for independent schools from January 2025 and the loss of business rate relief for independent schools from April 2025.

Page 5

The Royal Ballet School Endowment Fund Report of the Trustees

Following the implementation of the Charities Act 2022, Trustees have reviewed their approach to permanent endowment fund investments and agreed to implement a total return approach from 1 September 2024.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees’ Annual Report and the Financial Statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

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 fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:

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, the Charities (Accounts and Reports) Regulations 2008 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.

This report was approved by the Board of Trustees on 24 March 2025

Kenneth Steele Trustee

46 Floral Street Covent Garden London WC2E 9DA

Page 6

Royal Ballet School Endowment Fund

Auditor’s Report

For the year ended 31 August 2024

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL BALLET SCHOOL ENDOWMENT FUND

OPINION

We have audited the financial statements of The Royal Ballet School Endowment Fund (‘the charity’) for the year ended 31 August 2024 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

BASIS FOR OPINION

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

CONCLUSIONS RELATING TO GOING CONCERN

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 described in the relevant sections of this report.

OTHER INFORMATION

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is material

Page 7

Royal Ballet School Endowment Fund

Auditor’s Report

For the year ended 31 August 2024

misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the trustees’ responsibilities statement set out on page 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 trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 151 of the Charities Act 2011, and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, 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 statements 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 obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

Page 8

Royal Ballet School Endowment Fund Auditor’s Report

For the year ended 31 August 2024

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulations (GDPR).

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial 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 risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

USE OF OUR REPORT

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state 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 charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP

Statutory Auditor

London

6 May 2025

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Page 9

Royal Ballet School Endowment Fund Statement of Financial Activities

For the year ended 31 August 2024

Notes
Unrestricted
Funds
£000
Endowment
Funds
£000
Restricted
Funds
£000
Income from:
Donations
1
81
-
1
Investments
2
156
30
89
Total income
237
30
90
Expenditure on:
Raising funds
3
90
17
82
Charitable activities
4
30
137
411
Governance costs
5
20
-
-
Total expenditure
140
154
493
Net income/(expenditure)
97
(124)
(403)
Transfers between funds
(43)
-
43
Net gains on investments
899
624
326
Net movement in funds
953
500
(34)
Reconciliation of funds:
Total funds brought
forward
14,716
6,865
6,822
Total funds carried forward
15,669
7,365
6,788		 2024
£000
82
275

357

189
578
20

787

(430)
-
1,849

1,419

28,403

29,822		 2023
£000
539
225
764
185
575
8
768
(4)
-
(272)
(276)
28,679
28,403

The net incoming resources 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.

Page 10

Royal Ballet School Endowment Fund

Balance sheet

to 31 August 2024

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
Trade creditors
Accruals
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		 2024
£000
32
29,459
_
29,491
-
341
341
(1)
(9)
(10)
29,822
13,871
1,798
15,669
7,365
6,788
29,822		 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

The financial statements on pages 11 to 26 were approved by the trustees and authorised for issue on 24 March 2025 and signed on its behalf by:

Kenneth Steele Trustee

Kate Bolsover Trustee

Page 11

Royal Ballet School Endowment Fund Statement of cash flows

31 August 2024

Note
Cash flows from operating activities:
Net cash used by operating activities
A below
Cash flows from investing activities:
Dividends and interest from investments
Interest receivable
(Reduction)/Allocation of funds for investments
Net cash provided by/(used in) investing activities
Cash flows from financing activities:
Receipt of legacies
Net cash provided by investing activities
Change in cash in the reporting period
Cash at the beginning of the year
Cash at the end of the year
B below
Reconciliation of cash flows from operating activities:
Note A
Net income, from the statement of financial activities
Adjustments for:
(Gains)/Losses on investments
Dividends, interest and rents from investments
Increase in debtors
(Decrease)/Increase in creditors
Net cash used in operating activities
Analysis of cash
Note B
Cash at bank and in hand		 2024
(701)
252
23
(126)
149
82
82
(470)
811
341
2024
£000
1,419
(1,849)
(275)
5
(1)
(701)
2024
£000
341		 2023
£000
184
211
14
(1,396)
(1,171)
539
539
(448)
1,259
811
2023
£000
(276)
272
(225)
(5)
418
184
2023
£000
811

Page 12

Royal Ballet School Endowment Fund Accounting policies

BASIS OF ACCOUNTING

These financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) – effective 1 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 (Accounts 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 preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The accounts are drawn up on the historical cost basis of accounting, as modified by the revaluation of investments.

The Royal Ballet School Endowment Fund is a Public Benefit Entity registered as a charity in England and Wales and was established under a Definitive Trust Deed dated 9 June 1982 (charity number 285766).

GOING CONCERN

The Trustees have reviewed the current economic situation and the impact on the financial markets carefully with a view to managing the investment portfolio and the ability to fund future grants.

Having reviewed the funding facilities available to the Charity together with the expected ongoing need for 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 Charity’s financial viability. Accordingly, they also continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Accounting and Reporting Responsibilities on page 7.

CRITICAL ACCOUNTING JUDGEMENT AND KEY SOURCES OF ESTIMATING UNCERTAINTY

In the application of the accounting policies, Trustees are required to make judgement, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.

In the view of the trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Charity’s financial statements.

INCOME

Income consists of donations, legacies and investment income. All income is accounted for when the Charity has entitlement, there is 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 legacy will probably be received. Investment income is apportioned to unrestricted, endowment and restricted funds based on the values of the funds. The income generated from permanent endowment funds is apportioned to restricted funds for future expenditure.

Page 13

Royal Ballet School Endowment Fund Accounting policies

EXPENDITURE

Resources expended are recognised in the period in which they are incurred. Costs are allocated to the particular activity to which they relate. Grants payable are recognised when a constructive obligation exists. Governance costs comprise costs of running the Charity.

HERITAGE ASSETS

Heritage assets are valued at the cost of purchase less any impairment in value over the period. Donated heritage assets have not been valued, as it is not practicable to obtain a valuation of unique assets. Heritage assets held are ballet memorabilia and are tangible fixed assets of historical and artistic importance held to advance the educational objectives of the Charity and The Royal Ballet School. Where these assets are capitalised, depreciation is not charged because the assets have a very long useful life and the estimated residual value is not materially different from the carrying amount. The assets are subject to an annual impairment review by the Trustees and there was no reduction in the value of the heritage assets during the year.

INVESTMENTS

Investments, including bonds held as part of an investment portfolio, are held at fair value at the Balance Sheet date, with gains and losses being recognised within income and expenditure.

FUND ACCOUNTING

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 responded. Endowment funds are further subdivided into permanent and expendable endowment funds.

Unrestricted general funds comprise the accumulated unrestricted surplus or deficit each year.

Unrestricted designated funds are amounts put aside by the Trustees to follow the donors’ preferences, although the Trustees have discretion on using these funds.

Permanent endowment funds consist of capital that cannot be spent. The income earned on these funds is subject to specific conditions imposed by the donors and is shown in restricted funds.

Expendable endowment funds consist of funds where the capital can be spent, and the funds are subject to specific conditions imposed by the donors.

Restricted funds are subject to specific restricted conditions imposed by the donors. Paid income from permanent endowments are held in these funds and are restricted by the conditions imposed on the permanent endowment funds.

FINANCIAL INSTRUMENTS

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised value, except investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions. Assets and liabilities held in foreign currency are translated to GBP at the balance sheet date at an appropriate year-end exchange rate.

Page 14

Royal Ballet School Endowment Fund Accounting policies

1
DONATIONS
Legacies
Donations
Total
2
INVESTMENT INCOME
Equities
Cash
3
EXPENDITURE
Investment Management
Costs
4
CHARITABLE EXPENDITURE
Grants to students
Grants to School
5
GOVERNANCE COSTS
Fees payable to the auditor
for the statutory audit
Legal fees for fund review		 Unrestricted
142
14
156
Unrestricted
90
Unrestricted
-
30
30
0.00		 Endowment
27
3
30
Endowment
17
Endowment
137
-
137
0.00		 Restricted
83
6
89
Restricted
82
Restricted
411
-
411
0.00		 2024
82
-
82
2024
Total
252
23
275
2024
Total
189
2024
Total
548
30
578
0.00
2024
9
11
20		 2023
339
200
539
2023
Total
211
14
225
2023
Total
185
2023
Total
545
30
575
0.00
2023
8
-
8

Page 15

Royal Ballet School Endowment Fund Notes to the financial statements

for the year ended 31 August 2024

6 HERITAGE ASSETS

The heritage assets of £32,000 (2023: £32,000) consist of the cost of ballet memorabilia of Margot Fonteyn who was a former alumna of the School. The purchase was made in the year 2000/01 and the Trustees have carried out an impairment review and there is no reduction in the value of these assets.

7
INVESTMENTS
Market value brought
forward
New money invested
Reinvested income
Proceeds received
Management charges
Net gain/(loss) on revaluation
Market value carried forward
The investment portfolio is divided into the
following classes:
Equities
Fixed interest
Index-linked
Credit and illiquid strategies
Gold
Forward foreign exchange
Options
Global Funds
Hedge funds
Cash		 2024
27,564
235
(189)
27,610
1,849
29,459
29,459
-
-
-
-
-
-
-
-
-
29,459		 2023
27,815
206
(185)
27,836
(272)
27,564
19,803
1,454
3,025
668
426
7
561
1,325
-
295
27,564

Page 16

Royal Ballet School Endowment Fund Notes to the financial statements

for the year ended 31 August 2024

8 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 Governors of The Royal Ballet School (2023: two). During the year the Endowment Fund provided grants to students and to the School of £578,000 (2023: £575,000). The School has not recharged any sum for staff costs in either year. The Endowment Fund is a creditor of The Royal Ballet School at the balance sheet date of £309 (2023: £nil).

There are no other related party transactions (2023: None).

9 ANALYSIS OF NET ASSEST BY FUND

FUNDS:
Unrestricted
Designated
Endowment Funds
Restricted Funds
ANALYSIS OF NET ASSEST BY FUND
2023
Unrestricted
Designated
Endowment Funds
Restricted Funds		 Fixed
Assets
32
-
-
-
32
Fixed
Assets
32
-
-
-
32		 Investments
13,508
1,798
7,365
6,788
29,459
Investments
12,100
1,777
6,865
6,822
27,564		 Net
Current
Assets
331
-
-
-
331
Net
Current
Assets
807
-
-
-
807		 Total
Funds
2024
13,871
1,798
7,365
6,788
29,822
Total
Funds
2023
12,939
1,777
6,865
6,822
28,403

Page 17

Royal Ballet School Endowment Fund Notes to the financial statements

for the year ended 31 August 2024

10 UNRESTRICTED FUNDS

General fund
Designated Sutton fund
Designated GBL Wilson
fund
Designated GT Sindell fund
Designated Dulcie Pamela
Tilley fund
Valarie Adams Award
UNRESTRICTED FUNDS
2023
General fund
Designated Sutton fund
Designated GBL Wilson
fund
Designated GT Sindell fund
Designated Dulcie Pamela
Tilley fund
Valarie Adams Award		 Balance at
1 Sept
2023
£000
12,939
716
776
17
245
23
14,716
Balance at
1 Sept
2022
£000
12,706
729
821
17
250
24
14,547		 Income
£000
218
7
8
-
3
1
237
Income
£000
456
7
7
-
2
-
472		 Expenditur
e
£000
(99)
(4)
(35)
-
(2)
-
(140)
Expenditur
e
£000
(86)
(4)
(35)
-
(2)
-
(127)		 Gains &
Transfers
£000
814
(9)
37
1
12
1
856
Gains &
Transfers
£000
(137)
(16)
(17)
-
(5)
(1)
(176)		 Balance
at 31
Aug
2024
£000
13,872
710
786
18
258
25
15,669
Balance
at 31
Aug
2023
£000
12,939
716
776
17
245
23
14,716

Page 18

Royal Ballet School Endowment Fund Notes to the financial statements

for the year ended 31 August 2024

11 ENDOWMENT FUNDS

ENDOWMENT FUNDS
Permanent endowment funds
Askew Scholarship Fund
Brian Shaw Memorial 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
Prince of Wales Bursary Fund
Charles Hollway Bursary Fund
The Madeleine and Timothy Plaut
Bursary Fund
Expendable endowment funds
Ethel Rose Hart Fund
Joseph Lockwood Fund
Nellie Florence Watson Fund
Aud Jebsen Scholarship Fund		 Balance at
1 Sept
2023
285
98
59
112
52
816
455
100
27
1,025
144
831
65
4,069
545
2,019
65
167
2,796
6,865		 Income
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6
21
1
2
30
30		 Expenditure
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(8)
(48)
(36)
(62)
(154)
(154)		 Gains &
Transfers
34
12
7
13
6
98
55
12
3
124
17
100
8
489
26
98
3
8
135
624		 Balance
at 31
Aug
2024
319
110
66
125
58
914
510
112
30
1,149
161
931
73
4,558
569
2,090
33
115
2,807
7,365

Page 19

Royal Ballet School Endowment Fund Notes to the financial statements

for the year ended 31 August 2024

ENDOWMENT FUNDS 2023
Permanent endowment funds
Askew Scholarship Fund
Brian Shaw Memorial 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
Prince of Wales Bursary Fund
Charles Hollway Bursary Fund
The Madeleine and Timothy Plaut
Bursary Fund
Expendable endowment funds
Ethel Rose Hart Fund
Joseph Lockwood Fund
Nellie Florence Watson Fund		 Balance at
1 Sept
2022
277
95
57
109
51
793
442
97
26
997
140
808
63
3,955
560
2,090
96
-
2,746
6,701		 Income
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5
17
1
202
225
225		 Expenditure
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(8)
(43)
(31)
(31)
(113)
(113)		 Gains &
Transfers
8
3
2
3
1
23
13
3
1
28
4
23
2
114
(12)
(45)
(1)
(4)
(62)
52		 Balance
at 31
Aug
2023
285
98
59
112
52
816
455
100
27
1,025
144
831
65
4,069
545
2,019
65
167
2,796
6,865

Permanent endowment funds

Permanent endowment funds are capital funds where the donor has specified that the capital is invested to provide income and only the income can be spent. This income is accumulated separately in restricted funds as shown in Note 11 with the following restrictions:

Page 20

Royal Ballet School Endowment Fund Notes to the financial statements

for the year ended 31 August 2024

Expendable endowment funds

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

Page 21

Royal Ballet School Endowment Fund Notes to the financial statements

for the year ended 31 August 2024

12 RESTRICTED FUNDS

Restricted income from
permanent endowment funds
Askew Scholarship Fund
Brian Shaw Memorial 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
Prince of Wales Bursary Fund
Charles Hollway Bursary Fund
The Madeleine and Timothy Plaut
Bursary Fund
Restricted funds
Dame Margot Fonteyn Fund
Hines Fund
John Lyons Charity Fund
Upper School Maintenance Fund
Noreen Mummery Fund
Elizabeth Mills Fund
Partnership & Access Fund
White Lodge Appeal Fund
Royal Ballet School Fund
Ashton Award
Captain & Mrs John Moore Award		 Balance at
1 Sept
2023
-
-
-
-
91
-
-
-
15
-
-
-
-
106
730
270
-
1,697
924
90
614
1,106
1,250
18
17
6,716
6,822		 Income
1
-
1
-
2
3
2
-
-
4
1
4
-
18
8
3
-
18
10
1
7
12
13
-
-
72
90		 Expenditure
(3)
(1)
(1)
(21)
(31)
(8)
(5)
(1)
-
(10)
(1)
(8)
(1)
(91)
(300)
(30)
-
(10)
(6)
(36)
(4)
(7)
(8)
(1)
-
(402)
(493)		 Gains &
Transfers
2
1
-
21
4
5
3
1
1
6
-
4
1
49
34
13
-
81
44
4
29
53
60
1
1
320
369		 Balance
at 31
Aug
2024
-
-
-
-
66
-
-
-
16
-
-
-
-
82
472
256
-
1,786
972
59
646
1,164
1,315
18
18
6,706
6,788

Page 22

Royal Ballet School Endowment Fund Notes to the financial statements

for the year ended 31 August 2024

RESTRICTED FUNDS 2023
Restricted income from permanent
endowment funds
Askew Scholarship Fund
Brian Shaw Memorial 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
Prince of Wales Bursary Fund
Charles Hollway Bursary Fund
Restricted funds
Dame Margot Fonteyn Fund
Hines Fund
Boscawen Fund
John Lyons Charity Fund
Upper School Maintenance Fund
Noreen Mummery Fund
Elizabeth Mills Fund
Partnership & Access Fund
White Lodge Appeal Fund
Royal Ballet School Fund
Ashton Award
Captain & Mrs John Moore Award		 Balance at
1 Sept
2022
8
4
3
4
127
7
6
8
15
6
2
7
-
197
765
301
1
1,730
1,253
122
625
1,127
1,279
18
17		 Income
-
-
-
-
1
1
1
-
-
1
-
1
-
5
7
2
-
15
8
1
6
10
13
-
-		 Expenditure
(11)
(5)
(4)
(5)
(1)
(15)
(11)
(9)
-
(16)
(3)
(15)
(1)
(96)
(26)
(27)
(1)
(11)
(317)
(31)
(4)
(7)
(12)
-
-
(436)
(532)		 Gains &
Transfers
3
1
1
1
(36)
7
4
1
-
9
1
7
1
-
(16)
(6)
-
(37)
(20)
(2)
(13)
(24)
(30)
-
-
(148)
(148)		 Balance
at 31
Aug
2023
-
-
-
-
91
-
-
-
15
-
-
-
-
106
730
270
-
1,697
924
90
614
1,106
1,250
18
17
7,238 62 6,716
7,435 67
6,822

Restricted funds

Page 23

Royal Ballet School Endowment Fund Notes to the financial statements

for the year ended 31 August 2024

13 TAXATION

As a registered charity, The Endowment Fund is potentially exempt from taxation of income and gains falling within sections 466 to 493 of the Corporation Tax Act 2010 and section 521 to 536 of the Income Tax Act 2007.

Page 24

Royal Ballet School Endowment Fund Notes to the financial statements

for the year ended 31 August 2024

13
STATEMENT OF FINANCIAL
ACTIVITIES 2023
Unrestricted
Funds
£000
Endowment
Funds
£000
Restricted
Funds
£000
Income and endowments from:
Donations
339
200
-
Investments
133
25
67
Total income
472
225
67
Expenditure on:
Raising funds
89
17
79
Charitable activities
30
96
449
Governance costs
8
-
-
Total expenditure
127
113
528
Net income/(expenditure)
345
112
(461)
Transfers between funds
-
-
-
Net (losses)/gains on investments
(176)
52
(148)
Net movement in funds
169
164
(609)
Reconciliation of funds:
Total funds brought forward
14,547
6,701
7,431
Total funds carried forward
14,716
6,865
6,822		 2023
£000
539
225
764
185
575
8
768
(4)
-
(272)
(276)
28,679
28,403

Page 25