Rose Bruford College ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Annual Report and Financial Statements 31July2023 Company: 00508616 www.bruford.ac.uk Contents Legal and administrntlve Information Reports Chairfs Introdu¢tiDn Principal's Report Strategic Report- Operating and financial revi@w io Statement of corporate governance and internal control 18 Independent audrtorfs report 25 Financial Statèmènts StatEment of comprehensive income 29 Statement of changes In reserves 30 Balance sheet 31 Statement of cash flows 32 Note5 to the financial Siaternents 33 Governors Jenniftr Sims (Chairl Sudeep Ba5U Dr Alèx Bols Daryl Burns DF Anni Domingo Vivien Goodwin ProfessoF Brian Lobel Hassan Mahamdallie Dr David Reid Janet Smith Michael Whittaker Mia Matthews Bronwyn Teasdale Professor Randall Whittèker President Bernardine Evari5to OBE Secretary Jim Ben50n Principal & CEO Professor Randall Whittaker Key management personnel Professor Stephèn F3rrier (Dlrettor of Research and Academic Innovation) Joseph Lowe (Direttor of Finance and Operationsl Lisa Rabanal IDirectOT of Academic Affairs) Registered Offi Lamorbey Park Campus Burnt Oak ￿ne Sidcup DA15 gDF Telephone 020 8308 26DO E-mail uiries bruford.zt.uk Company Règistratlon 00508616 (England & Wales) CharÉty Registration 307907 VAT Registration GB 6807 15232 Internal Audttors RSM Risk Assurance Services LLP 25 Farringdon Strèèt London EC4A 4A8 External Audttors Buzzacott LLP 130 Wtsod Stre2t London EC2V 6DL Bankers HSBC UK ple Kent Commercial Centre 9 Rose Lane Canterbury Kent CTI 2JP ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE FlnanEi31 Statements= Yearto 31jU￿ 2023 Chair's Report Jennifer Sims Chair of Governing Body This has been a year of slgnificant change at Rose Bruford College with Profe￿Or Ma¥y Oliver, in her role as Acting Pritr)cipal. taking us through 3 time of transltion in leadership and a new permanent principal. Professor RandBII Whittaker, taking up post at the beginning of the new acadÈmic year. As we launch a new strategic plan, we are poised to achi&ve growth in 5tudeTrt numbers, underpinned bv financial stability, whilst maintaining the quality of our student offer. It is an exciting tirne for the College. We have in place the infrastructure that will enable us to move forward with confidence. Throughout the year staff have continued to work hard and to go above and beyond in their efforts to support our talented and creative students. The Board undertook the task of finding thè right candidate for the role tsf Principal with rigour and illtensStv. Working with a professional recruitment agency, a strong field gf candidates was called for interview, resulting in the èppointment of Profe550r Randall Whittaker. Randall has the vision, the knowledge of the sector, and the Experience at senior level to take the College forward into its next phase. He ha5 more than 20 year5 of experience in specialist creative higher education, leading significhnt organisational change and transformhtion projects. He worked closely with the Leadership Foundation for Higher Educ3tion to advance leadeiship in specialist in5titutitsns and has held positions at specialist Institutio￿ in South Africa. the Netherlands and the UK. He 15 known for his work on reprosent8tion. Professor Whittaker joinèd us in September and has made remarkable progress in a very short time. He biings a new vision which will see the College thrive in an inleTnational, national and local environment. We welcomed Mike Whittaker and Sud Basu as new Board members at the beginning of 2023. Mike has spent his career in the media industry, formerly as for Outernet and currently a5 COO for Telstra Broadcast Services, where he leads a global team working with some of the world's prominent media and sports brands. He bring5 excellent links with the media industry as well a5 extensive experience of both governance and management. Sud is an independent Creative Direitor. Consultant and Cultural Advi50r working globally commi55ioning major creative project5, programmes, festivals, art15tic insta51ations, experiential c4fftpaigns- and support organi5ationBI change and grovrth. His specialty expertise includes creatSve development, commi55ioning, fundraising, Stakeholder Management, Project Management and change management within a wide range of creative industries. Several of our long serving gr)verno¥s have left the Board this academic year, having completed two terms of office. We are grateful to them for all they have done foi the College. l am pleased tQ Say that we will be joined by four ￿eW governors with batkgrounds at the highest levels in fir)ance and banking, HR, risk manogement and HE settor ptslicy and management. We move forward with a strong Board and plan5 to streamline our committee structure to ellable us to be rnore efficient, responsive and flexible as work to determine, support and rnonitor the new strategic plan. ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial Statements.. Yearto a1ju￿ 2023 Chairfs Report Rose Bruford College has a reputation for leading the sector with innovation in the curriculum. This year has been no exceptic)n with the strengthening of our Postgraduate provisi()n bèing a particular feature. We have continuèd to support students displaced by the closure of the Academy for ￿ve and Recorded Arts IALRAI. Through thi5 initiative we have estsblished links with the creative community in the North West and have now established our own undergraduate provision there, giving access and opportunities to a wider range of students. The end of the pandemic has enabled Students from our international courses to oncè again take up their placements in the US and Europe and to welcome students from our partner institutions abroad at our Sidcup campus. The College has come through this tra￿lti￿nal period with a renewed determination to see our ethos and values prevail whilst we adapt and develop in a changing external envSronment. I would like to thank the Board for all their work, Professor Oliver and the senior team for their work during the academic year and all of the College staff. i am grateful to) our President, Bernardine Evaristo, for her ongoing and 2rtive support for the College. Jennlfer Sims Chair of Goveming Body ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Principal's report Introdurtion on College Posltlon, Proflle and Rankln8S Rose Bruford College ranked iith in this yearfs Complete Universiiy Gulde, Arts, Drama & Music league table, A number of our students were featured in this year's Student Guide to Drama Education And Theatre The College featured alongside other18rge universities in UCAS UCAS at 30, film. The film w35 shown across UCAS digit81 channels and at a UCAS gala event Drama Undergraduate Academic Development During the academic year 2022-23, the College implemented a co-designed Single academic frameworf( for a number of undèrgraduate prograrnmes. The Single Academic Framework (SAFI wa5 a direct response to a range of feedback from bctth staff and students with a desire to design improvements across a number of undergraduate programme5 of study. The resultlng framework was developed from a serie5 of aims doveloped through a consultative co-design proc￿5 that included staff across all 3cademic delivery and support area5. The National Student survey INSSI In the Naticlnal Student Survey INSSI 2023. Rose Bruford College scored above the sector benchmark and positivity measure in the areas of Academic Supptsrt and Mental Health énd Wellbeing Services. Responses to the themes of Teaching on my Course, Learning Opportunitiès, and Assessment and Feedback were around the sector benchmark. Thi5 reflerts a pleasing improvement in the theme of Assessment and Feedback where the ColleBe tarxetpd gain5 from below benchmark. The College scored below the Sector benchmark in relation to the theme of Organisation and Management, Learning Resources, and the Student Union and work is underway towar¢Js gaining student feedback on, and driving improvement5 to these. Teachlng Excellence Framework ITEFI Rose Bruford College was awarded an overall Silver in the Teaching Excellence Framework ITEFI 2023. The TEF panel weighted two component aspects equally, namely student experiet7ce and student outcome5, and considering all the evidence we provided acros5 all features and student groups, subjècts and courses, it awarded silver for both aspects thereby arriving at an overall 51iver rating. In reaching this decision for ROSÈ Bruford College, the panel considered there to be compelling ewdence that outstanding and very high-quality fèatures apply to most of our groups of students, including students from underrEpre5ented groups. The panel foynd most student experien￿ features to be of very high quality for all grDUPS Df students, and most student outcomes features to be of very high quality for all 8roup5 of students, including students from underrepresented groups. Across both aspects, we presented compelling evidence to show that our approaches are embedded and effectlve. New Programme5 Launched In 2023 the ColleEe launched two new programmes, BA Hons Actoi Training and MA Queer Performance. The MA in Queer Performance 15 the first course of its kind available worldwide, training practitioneTS to Create, explore, examine ènd expand queer performance practice. This distinctivè new postgraduate course is 3 space for radical imaginings of futUFe contemporaiy performance practice as well as cÈlebTating the diverse histories of queèr makÈr5 and thinkers. MA Queer Performance course offers broad training in a range of queer performance practices, delivered by queer artists, internationally renowned theatre-makers, academics. and researchers, acclaimed scholars of drag and popular queer performance. Fiercely socially ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Inantial 5tatoments.. Yearto31July 2023 èngaged, political, experimental and interdisciplinary, it provides an in4epth, comprehensive examination of queer performance practice, studying its themes, methodologies, and untapped possibilities. A new BA Hons Actor Trainlng programmè, is thè first new programme at our centre In Wlgan. During our brief time In Wigan. Rose Bruford College has been seen as a welcome addrtion in the town by Wigan Council, who are investing heavily in cultural regeneration. Opportunities to access diverse sm311 scale and impactful diversè cultural scenes are present across the North. There is additional industry support for the College, to maintain our base in the region, in order to contribute to the need fc)r a growing talent pipeline Sn the North c&f the country. Staff development Staff development artivities included training in mental healthcare, providing equity In the workplace, worTring with neurodiverse students and methods for self-care whilst working wtth Students who require increased levels of pastoral support. The interim leadership team undertook strategic devÈlDpment work in order to create a strong ttllabarative organisational approach. Student ServÈces staff undertook Sexual Violence Liaison Officertraining and provided training for SLT on dealing with investigations. CPD support was awarded for Student Support Officer in counsellingto aid our work with students in giving them autonomy, building resiliencè and settling clear goals. Student and Alumni Award Wjnners Changemaker Awards, a peer nominatÈd award for students who represent the College values of Integrty, Inclusion and Creativity Akshita 8rahma- Rose BTuford College Changemaker award120231 Janine Wickery- Rose Bruford CcFllege Changemaker award120231 Akshita Brahma~ Rose Bruford College Changemaker award120231 Ella Welch- Rose Biuford College Changernaker award120231 Jack Furlong- Rose Bruford College ChangernakeF award12Q231 Leticia Lemaire- Rose Bruford College Changemaker award120231 External Awards Harry Smith~ Liverpool Empire Theatre's Terry Smith Award.120221 Ak5hita Br3hma- Lilian Baylis award120221 Nell Rose, BA Design for Theatre and Pèrformance Graduate 2023, Awarded a BAFfA scholarship Harry Simkins was one of the winners of the Ulyan Bayltss Award 2023 Olivia Chandler shortlisted for the Spotlight Prize 2023 Zachary Lowe-McAlley won runner up for Carleton Hobbs Bursary Award 2023 Alumni Succe55es continue and include this year: Olivier Awards 2023 Katie 8rayben won Best Actre55 in a Musical forTammy Faye Jessica Hung Han Yun wott Best ￿ghtIng Design for My Neighbour Totoro Mark Walters nomlnated for Best Set Dèsign forjuck & the Beanstslk Tarek Merchant nominated for Best New musi￿1 for The BLFllGI s Vffsiys ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial $13t¢ments.' Yearto31 july 2023 Aruna Jalloh nctminated for Best Supporting Artor for Black Boys Who Have Considered Suicide When the Hue is Too Heavy Deoth of England.. C105ing Time from alumnus writer Roy Willi3ms opened atthe National Theatre. starring alumna Hayley $4uire5, Bnd co-set designed by alumna Sadeysa Greenaway-8ailey Honorands and Fellows The College welcomed new Fellows Ènd Honorary Fellows Those honoured at th5s yeaff 5 ceremonies with Fellowship5 and Honorary Fellowships were- Katie Brayben (Fellow) Yarit Dor IFellowl Jesslca Hung Han Yun IFellowl Kane Husbands (Fellow) Sam Palladio (Fellowl Andy Sinclair-Harrls (Fellow) Jlmmy AklngboSa (Honorary Fellow) Onts Dafedlalye (Honorary Fellow) Glyn Fu55ell (Honorary Fellow) Shabs Jobanputra (Honorary Fellow) Toby Jones (Honorary Fellow) Sue Ly5ter (Honorary Fellow) Professor Mlke Saks (Honorary Fellowl Productions Thi5 yèar the college supported fifty-three fully designed and technically rèalised performances across sixteÈn venues and three major industry events. Representing thè talent acr05S the college, the *asons of shows featured performances by final years students frorn BA (Hon51 Acting from Sidcup RBCSW and RBC Wigan. BA IHDnsl Actor Mugicianship, BA IHonsl American Theatre Arts and BA (Honsl European Arts in co113boiation with . BA (Honsl Costume Production, BA (Honsl Creative Lighting Control, BA IHonslDesign for Theatre and Performance, BA (Hon51 Lighting Design, BA (Honsl Scenic Arts and BA (Honsl Stage and Events Management. Postgraduate productions saw MA Attor and Performer Training collaborate with RADA Studios and MA Collaborative Theatre making work p￿Sented at the Cockpit Theatre. Industry placements 2022-23 Over the last yèar technical, design and management courses placements induded.. Royal Academy of Music, ITV (Good Morning), Creative Studios NCLH (Floridal, Badger Historic Costumes, Stuttgart St6a15theèter. P4ina Dunn Studio & Juliet Wardrobe, Belgrade Production Services, Watford Palace Theatre, Emergency Exit Arts, Footprint s￿nery, Tandem Set & Scenery, Richard Nutbourne Scenic Studio, Gemstage Scenery, Unicorn Theatrè, Target 3D Ltd, and the Royal OpeFa HDu5e. Students also worked 3% crew throughout the West End and many other plac¢s. In addition to placements organised with college assistance, students a150 took on paid work experience which they self-organised. Creative Industrfes Relationships and Knowledge Exchange An XR Stage, purchasèd 8s a r@sult of a successful capital resource bid to ofs, was launched in January at an event run in partnership with White Light. There was a high level of industry attendance from gue5t5 leading creative and tÈchnoloEltal companies including Targed3D, Cinelumina and as50ciatèd press including Brit15h Cinematographer and The siage. ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial 5tatements-. Yearto 31July 2023 Programming and hosting industryguest talk5 and Q&As wich a diverse range of industry professionals is a strong feature of the college experience. Guests this year includèd multi Ostar winner, Jenny Beavan OBE. director Peter Hoar. Augustus Prew. athrs Hayley Squires, RDsalee Craig and David CarlylÉ, writer Roy Williams OBE, managing director Darren Joyce, lighting d&igner Patrick Woodroffe OBE, performance artists Llvia Kojo Alour, poet. musiuan and theatre maker, Cassie Leon, theatre and cabaret producer, pioneer LGBTQ club and LGBT cabaret Duckie, art15t and zombie Martin O'Brien and Krishna Istha, performance artist, thèatrè-maker, comedian and screenwriter. Industry liai50n and event management attivities included 10 Actor Showcases and London séagon produrtions, which managèd thè attendan￿ of over 500 + agents, Casting team5, directors and producers. Ninety per cent of Acting and Actor Musicianship students were signed with agents in year as a result of these promotional activities. The college's relationship with our valuable and loyal Alumni is an important development activity as we approach our 75th Anniversary. InV￿tment into updating tsur Alumni lists, collating existing and new GDPR compliant contact dats into a single online database was undertaken, increasing the number of live contacts to alm05tthree thousand alumni. A ¢ampaign to reach outto Alumnl will bè undertaken over the next year. Wigan És one of the levelling up priority fvnded towns. The council. with the support of Arts Council England is tnvesting heavily into cultural regeneration and is currently celebrating the 50 Anniversary of Northern Soul. In April this year, the with the help of Knowledge Exchange funds awarded to the college tt) assist with post-covid arts reccivery, the college seed funded the development of award-winning film and stage writer Jim Cartwrighys new produttton, The GJp diretted by Nick Bagnall. Current students and recent graduates worked with the artist duo at the research and develtspment stage durlngthe Easter vacation. A work in progress performance featured as part of Wigan's Northern Soul 50, Anniversary Festival in a sit specific show at Trencherfield Mill supported bystaff and students from the Wigan Campus. The performance featured a professional cast inrluding Steve Huison (Full Monty) an alumnus of Bruford. The RBC Wigan campus hosted an exhibition of photographs and memorabilia and the after-show party which was attended by many Northern Soul original afi¢ionados. Recruitment The number of students accepting places on undergraduate courses at Bruford in 2023 was up by 30% on 2022, at the UCAS deadline in July 2023. A SUC￿SSfUl PR and social mèdia launch of the new Queer Performance MA saw the most successful video in terms of reach and views that the Collegè has ever published. The announcement was endorsed by high profile artists, and press coverage of the course. Research and KE artivlty The College funded 35 projerts during the 2022123 academic yearfrom 17 members of staff. Activity ranged from supporting indwidual research prc*jects. to those aimed at enhanclng the research culture of the College. Including EDI, and included several projects promoting Knowlèdgè Exchange and external collaborations. Resear¢h Ethics The Research Ethics Comm￿ee establlshed itg role 3nd posttion and further developed policies and forms, which are all on the Virtual Learning Environment. The CollÈge subscribed tD the UK Research Integrtty Office nd several staff attended its règular webinar series. Actlvttles and visits Kim Seth, the College's iel3tion5hip manager wlth Research England visited in May 2023. The Director of Research and Research Manager attended meetings of the GulldHE Research Group Of institutions, particularly the influential Research Leads meetings. The College was also represented at a REF Conferen￿ on the plans for REF 2028 and responded to UKRI'S consultations on the exercise. ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial 5tateTnÈnts.' YÈarto31July 2023 The Colle8e h05ted twts vlsiting research fellows, Kristina Wong and Yvette Nolan, who both engaged with stydents and researchers and gave research lectures. We also hosted a visit from the postgraduate researchers from the Victorlan College of the Arts, Univèrsity of Melbourne, which, included a presentation of research. The College Research Committee held an away dayto discuss its strategy in November 2023 and a further day 15 planned in 2024. The College saw research staff attend national and international conference5 pre5entinB a total tsf 10 papers across 4 conference5. staff convene national and international research working groups in our sectorfs reseaTch organisations. Thè College saw research staff produce 19 researthlknowledge exchange outputs in year. stafflstudent development The College held three trainin￿Update sessions for research staff 'research sharing events,, that conslst of a talk or update followed by an opportunity for staff to share the research they are working on. Four similar sessions were held for PhD students. Resèarch fundln8 application5 Wè saw activity in applications to tnajor funders. We will be stepplng up Dur activity in thi5 area during 20231 Profc5sor Rand811 Whittaker Principal, Chief Executive and Accounting Officer ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial Ststements.. Ye8rto 31 July 2023 Operating and Financial Review Strategy Report- Review of the year Financial & Operational Review The financial statements presented to the Board of Governor5 reflect the results of the College for the year ended 31 July 2023. The College's Statement of Comprehensive Income for the year to 31 july 2023 shtsws an overall surplus of £721k 12022.. £2168kl. Thi5 surplus is stated after a non-cash pension actuarial surplus of £575k12022-. £2,821kl, non-cash sèrvice costs and interest charges IFR 102 adjustments) of £129k12022.. £422kl and restructuring costs of £53k12022'. £17kl. After removing these items, there is an operational surplus of £327k. an improvement of £541k from the previou5 year. when an operational dèficit of £214k was recorded. Thi5 is shown in Table l. Table I: Operational Surplu5 1 (Deficttl 2017-18 £'OOOs 2018-19 £'0005 2019-20 £'OOOs 2020-21 2021-22 £'0005 2022-23 £'OOOs £'OOOs Income Operational expenditure 9,428 9,262 9.499 9,188 10,138 9,333 10,130 11.727 12,588 12,802 14,758 14,431 Surplu5 1 {Deficitl forthe year 166 311 805 11.597} 12141 327 The improvement in the operntional outturn for 2023 was driven by an additional new performÉng art5 gont from the Office for Students Ofs), the changes to the Theatre Tax credit, and reduced I0￿e$ at the College's student residente. Whilst financial savings were made in programme delivery costs. there were cost piessurÉs from subsidising the 'teach-ouV of the students transferred following the Academy of Live and Recorded Arts IALRAI entering liquidation, the national pay award, as well as thè sharp increase in inflation in the context of the regulated student fee, and O general per student fundinE remaining fixed in cash terms. Whllst the return to a surplus, after two years of operating deficits, is a very welcorne change, deliverin8 the high- quality courses for which the Ctsllege has a leading reputation, whilst core funding is being eroded by rising costs, is very challenging. Wtthout a change in fundinE, or an increase in thÈ règulated fee, the College will have to increase ¢ts Income via student number growth, with a distinct towards international Students. The following table detaÉls how the Dperational outturn, which is cDn5idered 3 bettèr guidè to financial perfomiance, reconciles backto each yearf5 total comprehensive income statement. Tablè 2: Reconclliation between the Operational Surplus / (Deficit) and Total comprehensive income 2017-18 2018-19 2019-20 2020-21 Z021.22 202Z-23 £'OOOs £'OOOs £.0￿S E'OOOS £'OOOs £'LKIOs Total comprehensive expenditure for the year Less.. LGPS actuarial Ios51 Igainl Add.. LGPS service, interest & admin adjustment Less- Profit on disp95al of fixed assets Add.. Restrutturlng costs 539 18161 236 605 874 297 11.4651 11261 11,2061 2,168 533 17591 12,8211 386 365 422 721 15751 129 207 12 17 53 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Flnancial Statetnents.. Yearro 31July 2023 Operatlonal Surplus / IDeficitl for thè yèar 166 311 805 11,5971 12141 327 Income In 2022.23 the College has generated intome of £14,758k12022.' £12.588kl, an increase of 17%. This is broken down by the key income componènts in the following table. Table 3.. Income 2017.18 £'OOOs 2018-19 £'OCKJs 2019-20 £'OOOs 2020-21 £'0005 2021-22 2022-23 £'0005 £'OOOs Office fDr Students Research England Tultlon fees Other income Investment income 1,178 63 6,449 1,737 857 63 6,699 1,870 io 1,278 63 7,135 1,647 15 825 71 7.422 1,812 1,060 407 9,313 1,807 1,986 442 9,564 2,755 li Total income 9,428 9,499 10,138 10,130 12,588 14,758 In 2019-20 Ofs fundinE reflett5 the Catalyst project. Funding increases in 2021-22 relate to specific funding for the ALRA student transfer project, masking the impact of the removal of the Outer London Allowance and the tèBching grant for our main subject areas being reduced by 50%. The 2022-23 increase is due to the additional performing arts grant. Whilst this additional funding its welcome, its positive impact is negated by it being lirnited to 500 FTES. This is especièlly difFicult when the College is'teaching-out, additional students due to the ALRA liquidation, and to mèet th local authority's objective of continuing ALRA'S work in Wigan, where ALRA was the town'5 Sctle provider of hlgher education. Other income increases reflect incfèasing income from the Christopher Court student resldence and the Theatre Tax redit. Student Numbers In 2023, student numbers declined by 8%, as the first phase of the ALRA 'teaeh-DuV project was completed. Additionally, there wa5 poor recruitment in the technical arts and digital courses, with growth targets not beln8 achieved. Table 4.. Student Numbers IFTEI 2018-19 201¥20 2020-21 2021-22 2022-23 Undergr3du8te fvll-time Undergr3duats pèrt-time P05tgraduate full-time Postgraduate part-tirne FoundatSon Inon-accreditÈdl 510 32 542 540 29 569 574 32 6 768 38 806 685 37 722 38 21 26 19 26 35 22 29 21 16 37 15 20 35 29 29 58 98 48 146 107 71 178 17 17 14 16 io li 20 21 46 io 56 53 16 69 53 17 70 82 25 107 iii $8 32 90 Totsl 632 64 626 643 ?2 715 685 85 770 994 121 1,115 879 149 1,028 H= Home / EU, O= Overseas lexcluding EUI, T= Tot31 the graph illustrates, the College has shifted towards postgraduate students, but has not grown student numbers, or shifted towards postgraduate students to the extent that was forecast. LD ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Finantial 5tatements'. Ye3rto 31JuW 2023 Changing Student Number5 {FTEI 1,200 1,000 800 600 400 200 2019 2020 2021 2022 2023 Undergraduate N Postgr8du3ts 3 Foundatlon Operational Expenditure Operational expenditure excludes the adju5tment5 for the LGPS scheme. Given the these can vary outside of thè College's day-to-day control, and are non-cash, operational expenditure is considèred a good indi¢atorof the College's financial performance. In 2022-23 the growth in operational expenditurè has been sufficiently controlled to bring the College back into a surplus position. AdditionJl ctssts include £1.25m required to deliverthe ALRA'tea¢h-QLtt' in London and Wigan. If this is excluded, the growth in expenditure was limited S%, reflectingthe savings made in academic delivery. IL ROSE BRUFORD COLLEGE OF THEATRE AND PERFOFiMANCE Financial StateEnents.' YeartD 311uly 2023 Table S: Operatlonal Expendlture 2017-18 2018.19 £'OOOs 2019-20 2020-21 2021-22 £'OOOs £'OOOs £'OOOs 2022-23 £'OOOs £'OOOs Staff costs ather operating Expenditure Depreciation lllterest p3yablÈ 4,686 4,175 401 4,Q96 4,685 407 4,575 4,274 5,255 6,061 411 5,268 7.083 451 6,043 7,661 727 Total expenditure 9,262 9,188 9,333 11,727 12.802 14.431 Capital 8rant5 At thè y@ar-Ènd, the ColleEe was holding deferred capital grants of £5,275k12022.. £5,511kl applicable to the Rose Theatre, Catalyst project as well as funds awarded In 2022. Flxed assets The College ha5 total fixed a55et5 of £9,916k12022.. £10,272kl. There has been a decreasè in recèipt of the Office for Students capital Erants, as noted above. Other funds were Spent on IT and workshop equipment plu5 equipment to facilitie5 for the ex-ALRA Students up to a standard consistent with the R052 Bruford èxperience. Cash flow The statement of cash flow5 show5 a net decrease in cash of £264k12022.' increase £105kl. The net cash Inflow from operating activities was £66k12021-. inflow £150kl. Opèrational cash flow has been positive for tho last 2 years. Continued investment in estate management is requlred which has resulted in a decrease. The main non cash itèms are depreciation1£726kl and the release of capital grant income1£327kl. Reserves pollcy The accumulated reventse reservè of £5,949k12022'. £5,227kl represents the net unrestricted funds at the College's dikpe531. GovÈrnors have set a target to maintain free reserves at as close a level as possible to three months of the Group's operating cc>sts. Given that this is current equivalent to appioxirnately £3.4m. reserves remain in excess of the agreed target. Principal risks and uncertainties Risk asse55ment and risk management arrangèmènts ctsntinue to be reviewed by the College in order 10 Safeguard corporate interests and reputation as part of its Strategic Plan. The College's rlsk regSster Is revlewed regularly by the Senior Leadership Team and by the Audit Committee. The risk re8lSter identifie5 key r15ks, the likelihood of those risks occurrin& their potential impact on the College and the actions being taken to reduce and mitigate the ris￿. Outlined below 8re the CollÈge's current significant strategic risks, together with the rnitl8ation tllehsuies In place. R15k number I: Fallure to increase Student number5 The College needs significant additional student number5 to manage rèduted funding from the Office for Students, increasing Dperational c05t and 3 statit home studÈnt fee. This growth needs to be tilted 518nificantly towards International and postgraduate students due to the higher fee that can be charged. As a small specialist institution, without this additional incorne, the College's risks not having the resources necessary to maintain viabililv. Mitigation.- Under a new Principal, the College's output is being revitè5ised, with the academic Structure ol the College moving from two 'schools' intc> a single academic structure. covering undergraduate, international and postgraduate courses. A5 part of thi5 academic programme5 are being reviewed, with a shlft towards courses that can recruit in sufficient numbers, that are relevant to our industry, and attractive to both UK and international student5. The Senior ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE FinancialStatÈments.'Yearto31July 2023 leadership team has been revttalised to allow for a more focused approach in this area. Separately. the generation of additional income through better use of the Campus for external buslness, especially outside of term-timè, will continue to be targeted. Rssk number 2: Inadequate ￿ systemsthat dÉ5rupt the efficient running of the College Some aspert5 of the College's ITsystems are ageing, have a reliance on indlviduals, and arÉ sub-optimally configured, with the consequence that user efflclency Is reduced, and business continuity is put at risk. Mitigution.. Followlng a thorough review in 2021, a new approach to IT is underway. A strategy of moving more pplications to the cloud, simplifying the ne￿Ork infrastructure, and targeted investment in industry standard equipment is being rmplemented. It is a¢thowledged that the process requires further enhancements with increased adoption of external expertise to supplement internal processes. Rlsk 3: Unaffordable pension arrdngements The Cctllege 15 2 member of two defined benefit pension schemes. the Teachers Penslon Scheme and the Local Government Pension Scheme. These schemes have employer contribution rates currently set at 23.68% and 18.2% respectively, are Considerably above the 3% employer contribution rate mandated by the Government. Additionallyi LGPS results in additional charges to expenditure, that although initially non-cash iterns, reflect the obligations made bythe College to its employees. In 2023 employee pensions eostthe College £945k12022 £1,154kl 31rnost 9% of total expenditure. compared to approximately £166k for a standard statutory scheme. For these reasons defined benefit scheme have become very unusual in the private sector. The College finds itself as outside the public sector, but with membership of these scheme5, something that is out of line with most employers, and the cost risks becoming unaffordable. Mitigation.-Alongwith many other higher education providers the College Contlnues to review its membership of LGPS and looking at org3nisational strurturesthatwould redutsthÉ costs of teachers pensions forsome non-core aCti￿lIes. As seen In 2023. these would, over time, reduce employer pension costs. Risk4: Inftatlon increases (osts beyond what is afft*rdable External expenditure pressures include the general increase in price inflation to levels not seen for a generation, with the impact being increased by the regulated homè student fee continuing to be held at £9,250. Implementing nationally agrèèd pay awards and annual pay increments for many staff also results in increases to Staff costs. ConseqUen￿v, expendlture could increase beyond levels that are affordable relative to the College's income. Mitigation.. Expenditure budgets are bein8 Carefully reviewed, a continued emphasis on cost efficiency, and more effettive ways of teaching h8vè and continue to be introduced. The Board will carefully consider whether to use its discretion in implementing national awards, being aware that it can only proceed as is affordable. Ri#k 5: DeteAoratSon of the estate Whilst m05t of the Lamorbey Park campus 15 modern and in good condition, some areas, particularly the listed Lamorbey House. are in poorer condition and shovld be refurbished to provide the expected standard. The potsr condition also results in higher day-to-day maintenance and energy cost5 when compared to a refurbished building. The costs a550tÉatèd w¢(h maintaining the &tate will be challènging to incorporate into future expenditure plan5. MitigutiorJ.- The estates m3lntenance budget is being set at a level that should m?Intain the standaid of the estate, whilst funds for refurbishment are sought. ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial Ststements.. Year to 31July 2023 Risk 6.. Dlfflcultyof maintaining a high-quality studentexperience against a backdrop vf reducin8 Office for Students furKling A5 a Small specialist provider, the College seek5 to of offer a conservatoire experience for Its students. As this tends to involve greater contact hours, industry engagement and small group workin8. and professional standard productions, thi5 15 increasingly challenging to provlde wlthill the framework of the regulated fee of £9,250. The risk is that if the College can no longer afford to offer a 'conservatoire' èxperience, if will not be able to attract students, and therefore be in a spiral of decline. Mitigation.. The College is seeking to Increase both the total number of students, and the proportion of International students. as being a way to maintain the necessary average fee level. Strategies for fundraising and further non-higher education incorne are also being developed. Going concern The College'5 activities, together with the factors likely to affect its future development, perfL}rMan￿ and po%ition are set out abtsve. The fin3ncial position of the College is set out in the above 'Financial Review, and stated in the primary accounting statements and the accompanying notes. The College achieved a surplus in 2023, when compared to 2022. It Wa5 also remains cash positive. This means that the Collegè starts the year 2023/24 in a stronger financi31 posÉtion. Work to reduce costs, and the positive change5 from the'single academic framework.. which arè expe.cted to result in courses that are both attractive to the market, and affordable to deliver, are also belnE implernented. The recent award of additional Ofs teathing grant of £lm per year, for the five years frDm 2022123, will continue to have a material impact on the College's financial position. The Board has conducted its assessment, in the context of the College currently having no borrowings, but a55ets that could, a5 ha5 been the case in the past, be used to secure Working c3Pltal funds. The Board has reviewed monthly cash flows through to July 2025, and detailed budgets for 2023124 and 2024125. All of these documents show the College having p051tive cash balan￿$, with a reasonable margin for working capital, for both 12 months from the date of this reporvs approval, and for the foreseeable future. As discussed in the proceeding section on the principal risks, thè College does face a number of challenges, the prirnary risk being a failure to recruit to target for October 2024. Should this risk tsccur. there would be a further strain on cash flows. Taking into account of the mitigations, also noted above, and acknowledging the sÈnsitivity of cash flow5 to these risks occurrin& the Governors are satisfied that thèir impart is manageable. Work has commenced on a new strategy to July 2027, which. if the planned for growth in overseas students is achieved, will significantly irrprove the financial position the College. Therefore, having considered the above information, the Governors conslder ihat its appropriate foi the College to prepare its Financial Statements on a going toncern basis. Equal opportunities Rose Bruford College 15 committed to promoting equality of opportunity in all arEa5 of employment and Study. We work towards an environment where all employeES and students can develop to their full potential regardless of gender, disability, race, colour, marital status, ethnic origin. sexual orièntation, age and religious or political affiliation. We aim to ensure current and futuie employees and student5 recognise Rose Bruford College as an organisation which demonstrates equal opportunities. Equal Opportunities at Rose BTuford College means.. respecting and valuing diversity and benefiting fiom those differencès promotion of equal opportunity in all aspects of employment and in the sewice to our students creating a harmonious envlronment to work and study In and in which discrimination has no part basing all employment, business, and academic decisions on merlt building an Ènvironment where staff and students can achieve their full potential. 14 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial Statements.'Yearto 311uly 20 In the devèlopment of the College's Strategie plan, the institution is commltted to becoFming a thriving and diverse higher education provider wlth a reputation as the institution of first choice, for students and staff from a wide divèrsity of backgrounds. The College also strives to be an integral part of local, natiorlal and intemational communities. Environment and sustainability DurinE 2023, the College has reinvigorated its Environment and Sustainability Comrnittee after a hiatus dueto COVID- 19 and stsff changes. Thè Committee developed an attion plan for the College that promoted healthy Ilving and Sustainable lifestyles to staff and students. The Board is currently considering its implementation. Employment of disabled persons Applicatitsns for employment by disabled persons are always fully considered 3nd guaranteed an inteThiÈw, subject to meeting the selection criteria for the post. If exlsting employees become disablèd évèry effort is made to continue their employmènt wlth the College and arrangements will be made for reasonable adjustments, lupport and training as 3ppropri3te. It Is the College's policy that the training, career development and promotion of disabled persons should, as far as p055ible, be identical with that of other employees. Employee involvement The College places considerable value on thè involvement of its employe￿ and o)n good communic3tion with them. All staff attend regular briefing meetings and are encouraged to participate informally and in formal discussion at those meetings and through 3 range of administrative and academic committee5_ The ColleEe has in place RewgnttÈon and Facilitles Agreementwith the University & Colleges Union and UNISON and as part of that agree¥nent the Joint Negotiating Consultative Committee meets regularly. The followin8 Statement is provided to enable readers of the annual report and f5nancial ststemènts of Rose Bruford College of Theatre and Performance lthe College), to obtain a better understanding of its governance and lègal structure. This covers the period from 1st August 2022 to 31stJuly 2023 and up to the date tsf approval of the Financial Statements. Constitution and artivity The College, incorporated in 1952, is regtstered under the Companies Att 2006, as a Company Ilmited by guarantee without share capitsl. The ColSege is a registered charity within the meaning of Part 3 of the Charities Act 2011. The Governors, are the Trustees for the purpts5es of the Charities Act 2011 and are Directors under the Companie5 ACE 2006. The principal attlvity of the Cc*llege is the provision of higher education in theatre and related arts as a specialist College within the UK Higher Education sector. The College is primarily funded by grants from the Office for Students nd tuition fee income from students. In the event of the Company being wound up, the liability of each member, who are the Governors. Is Ilmited to £2. Public Benefit statement a registered charity there are many ways that the College provide5 benefits both to the wsder public good and particularly to groups which might otherwise be excluded from higher education because of financial circumstances. The Prlncipal's report above, demonstrates the range of activities undertaken during the year which benefit both the general and loral public, and those which focu5 on groups 8t historically under-represented in Higher Education. In sètting and reviewing the College's objectives and actiirities, the Governing Body has had due regard to the Charity Commission's guidèn¢e on the reportlng of public benefit and particularlyto its supplementsry public benefit guidance on the advancement of education. ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial St3temÈnts'. Ye3rto 31 July 2023 ThÈ College actively encourages applications from all groups in society, and promotes, as part of its heritage. an nclusive community spirit where all can benefit frorn a diversity of cultural exchanges and from learning of each other's life experiences. The College sees Its mission as a cornbination of educational and artistic endeavour. fulfilling its obligations as registered charity to promote engageme4)t and to tontribute broadly to society by providing a range of education and tTaining opportunities and suppc>rting research in the theatrical arts and technolo8ie5. In doing so it continues to offer support to those who might otherwise find it difficult to study,. and to offer encouragement to a wide range of participants. Its vision of theatre and community is an inclusive one, promoting undeistaridingthrough the sharing of cultural differences. 16 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE #inantial Ststements: Ye3rta Iljuly 2023 Statement of Corporate Governance and internal control Governors The members who servÈd on the Board of Governors Ithe Board) during the year and up to the date of signature of this report were as listed in the table below: Name Attendan￿ .' .. Appoirtment Rèslgnation Appointment Committees Membership W. Remuneration Govemance E5tate5 StratÈgy GDvern3ntÈ GtrvÈrnÈnce Jennifersims Ichairl 05-11-13 Independent Sudee 8asu Dr Alex Bols D3ry1 Burns 01-01-23 10-10-23 01-08-23 Independent Independent staff NA DrAnnl Domingo 01-0>21 Independent Independent strff Finance & Ge￿È￿1 Purposes Remuneration Finance & General Purposes Vivien Goodwin Professor Brian Lobel 01-0&22 18-01-22 Audit Finance & Gener31 Purposes RemuneRtion Ichairl a55an Maharndallie 19-08-15 Independent Mia Matthews 01-08-23 student NA Dr David Reld 30-10-23 Independent Independent Student Independent Ex-OfFIc IndependÈnt IndepÈndÈnt Independent Ind@p&ndent IndÈpÈndÈnt Strdff Independent Ex-{m￿l0 Ex-officio IndÈpend&nt Independent Student Finance & GeneTal Purposes (Chair Audit NA Janet Srnith Bronwn Teasdale Michael Whittaker Professor Randall Whittaker Rod Brown Christopher Chappell SY￿13 D3rkwa-Ohemen Rogan Dixon Satsh HO￿rd roline Jenkins George Littlelohn Clarie Middleton Professor Mary Oliver Professor Mike Saks Professor Steven Spier Jess Verri Key: 01-04-22 0&01-23 24-11-22 01-W-23 0>07-14 17-01-23 01-03-21 2>11-17 01-05-19 01-05-20 21-09-17 09-01-18 30-09-22 20-08-14 01-07-20 06-01-23 Renumeration 31-12-22 11-10-23 23-03-23 05-03-23 01-09-23 31-07-23 23-D4-23 3M9-22 31-D7-23 31-12-22 31-07-23 2&04-23 lil As atthe dats of Financial 5tatemerrtS 3pprov81 121 Meetings during 2022123 and where the person was a Governor Additionally. the Golvernors thank Patrici3 Ambrose and Colin Campbell for their serwce on, respectively, the Finan¢e and General Purposes and Renumeration Committees,. 17 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial Statements-. YeartD 31 July 2023 The Board The Board of Governors, the majority of whom are non-executive, comprise5 persons appointed under the Articles of Association. The role of thÈ Chair of the Governors is separated from the role of Principal and Chief Executive. The matters specially rèserved to the 8oard of Governor5 for decision aTe set out in the Articles of Association, by custom and under the ofs Conditions of regi5tiation. The Board holds to itself the responsibilities for ongoing strate8lC direction of the College, the appointment and dismissal of deslgnated office holders and approval of major developments. It receives regular operatlDnal repgrt5 from the Chief Executive. It is the Board's responsibility to bring independent judgèmÈnt to bear on issues of strategy, performance, re50urce5 nd standards of conduct. The Board is provided with regular and timely information on the overall financial performance Df the College together with other information such as performance aEainst fund£ng targets, proposed capital expenditure, qu31ity malteTS and personnel related mattèrs such as health and safety and enmronmental issues. All Governors are able to take independent profèssional advice in furtheran￿ of their dutles at the College's expense and have access to the Collegè Secretary, who is respcinsible to the Board for ensuring that all applicable procedures and regulations are followed. The appointment, evaluation and removal of the Secretary is a matters reserved to the Board. The Board has a strong and independent non-executive element and no individual or group dominates its decSsion- making process. The Board considers that each of its non-executive member5 is independent Of management and free from any businès5 or other relationship which could materially interfere with the exercise of their independent judgement. There is a clear division of responsibility in that the role5 of the Chair and Accounting Officer are separatè. The Board meets on Six occasion5 during the year and undertakes an annual development day. The Board conducts its business through a numbor of committees. Each committee has terms of reference, which have been approved by the full Board. These comrnittee5 are.. Finance and General Purposes Committee. Audit Commlttee, Governance Committee, Remuneration Committee and the Estates Strategy Committee. All of these Cornmittees are formally constituted, with Board approved terms of reference, and a membership of appropriately qualified and experienced persons. Audlt Commlttee The Audit Committee rneets three times each year and provides a forum for reportlng by the College'5 Illternal and financial Statements auditors. This includes access to the Committee for independent discussion, without the presence of College managemènt. The Committee also receives and consider5 reports from the main Higher Education funding and reEulatory bodies as Ihey affect the College's businè55. The College's internal auditors review the systems of internal control, rSsk management controls and governance processes In accordance with an agreed plan of input and report their findings to management and thè Audit Committee. M3nagement is responsible for the implementation of agreed audit recommendations and internal audit undertakes periodic follDW-up reviews to ensure such recommendations have been implemented. The Audit Commlttee also advises the Board on the appointment of inteinal and financial statements auditors, and their rEmunerat￿oN for audit and non-audit work, as well a5 reporting annually to the Board. The Prlnclpal and Chair and both excluded from membèrship of this Committee but attend at thE discretion of the Committee Chair. Estate5 Strategy Committee The Estates Str3tegy Committee is principally respor15ible for leading in the formulation c>f, and for keeping under review, the Estates Strategy for the development of the College's ostatè in line with the College Strategic Plan. 18 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE finanri?I St3tements=Yearto 31July 20 Financo & General Purposes Committee The Cornminee 55 responsible for monitoring College finances, student recruttment, retention and satisfaction, he31th & safety, staffing issues and estates management. Governance Committee The Governance Committee is principally responsible for the Selèction and nomination of any new Governor for the Board's consideration. It also Overse￿ Govèrntsr induction, training, and development. Remuneration CommÈttee The Committee's responsibilities are to make recommendations to the Board on the remuneration and benefits of the Principal and CEO as well as other senior ptsst holders. The Committee complies with the CornmÉttee of University Chairs ICUCI Higher Eduotion Senior staff Remuneration Code. Neither the Chlef Executive and Principal nor any other member of the executive is a member of the Committee. Details of remL¢neration for the year ended 31 July 2023 are set out in thÈ financial statements. The Collegesètretary maintains a register of financial and personal interests of the Governors. The register is available for inspection at the registered address. noted in the'Legal and Administrative information, section above. Appointments to the Board All appointments to the Btsard of Governors are a matter for the consideration of thè Board as a whole. The Governance Committee is responsible for the selection and nomination of any new member for tPke Board's consideration. The Board is responsible for ensuring that appropriate training is provided as required. MemL7ers of the Board are usually appointed for a term of office not ex￿e￿Ing four years and may serve for a second four-year term. Board performance The Board undertakes an annual perforrnan￿ reviewthrough a survey of all Governors. The report on the assessment is discussed at the BDard's annual dèvelopmènt day. Scope of responsibility and delegatÉon The Board is ultimately re5pon5ible foT the College's system of internal control and for reviewing its efFectiveng5s. However, such a system is designed to manage, ratherthan eliminate, the risk of failure to achieve busIn￿S objective5 and car¢ provide re859nable and not absolute assurance against material misstatement or loss. The Board has delegated the day-to-day responsibilityto the Principal. as Accounting Officer, for maintaining a suund system of internal control that supports the achlevement of the College's policies. aims and objectives, whilst safeguarding public funds and assets. These systems of internal contrul and required to be in accordance wtth the responsibiliti& assigned to her ift the terms and conditions of registration for the period to 31 july 2023 between the Cc)Ilege and the office for Students lots). She is also responsible for reporting to the 8oard any material weaknesses or breakdtrwns in internal control. 19 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Flnancial Statements.. Yearto 31July2023 Corporate Governance The College endeavour5 to conduct its business-. in accordance wlth the seven prlnclples identified by the Committee on Standards in Public Life (selflessness, integrity, objectivity, accountability, openness. honesty and leadershipl- in accordance with the CUCS Higher Educ3tion Code of Governance as i55ued by the Committee of Universitv Chairs in September 202Q,' and having due regard to the UK Corporate Goverrnan￿ Code 2D16, insofar a5 It is applicable to the higher Èducation settor. The College 15 comrnitted to exhibitln8 best practice in all a5pect5 of corporate governance and in particular the CUC Higher Education Code of Governance. We have not adopted and therèforÉ do not apply the UK CDTporate Governance Code. However, we have reported on our Corporate Governance arrangements by drawing upon best practice available, including those aspects of the UK Corporate Governan￿ Code we cot)sider to bè relovant to the higher education sector and best practice. The Governing Body recognises that, as a body entrusted with both public funds, it has a p3rticulBr duty to observe Ihe highest standards of corporate Eovernance at all times. In carrying out its rÉsponsibilitie5, It take5 account of the Higher Education Code of Governanc@, noting that the code foresees that institutions may adopt the code, whilst explaining non-compliance. In the opinion of the Governors, the College complies with the provisions of the Code, ex￿pt in respect of the Audit Committeè Chair. For an interim period, the Chair will remain in office, whi15t no longer being a member tsf the Governing body, in order to allow the Board to appoint additional Trustees sufficiently experienced and qualified to undertake this rolo. The Board Df Governors, through its various committees, has continued to carry out its responsibilities in Setting policy and monitoring the performance of the Colleg&. The Board of Governors has formulated an ongoing process for identifying, evaluating and managing the College's significant riskg, which is regularly reviewed by the Board of Governors. and which accords with the internal control guidance in the UK Corporate Governance Code a5 deemed appropriate for higher education. Risk Management The Board has reviewed the key risks to which the College is exposèd together with the trpèratin& financÉal and compliance controls that have been implemented to mitigate those rists. The Board is of the view that there 15 a formal ongoing procgss for identifyin& evaluating and managing the College's significant risks that has been in place for the year ended 31 July 2023 and up to the datè of approval of the annual report and accounts. This process is regularly reviewed by the Board. Internal Control System of Interna l control Thè Board of Governor5 is accountable for internal control and therefore has responsibllity for maintalning a sound system of internal control that supptsrts the achievement of the College'5 Strategic plan. and for reviewing its effectiveness. The system of intern31 control is designed to manage ratherthan eliminate the risk of failure to achieve thesè strategic aims and objectives,. it can therefore only provide reasonable and not absolute assurance of effectiveness. The Audit Committee's role in this area 15 Conflned to a hlgh-level review of the arrangement5 for internal control. The Board's agenda include5 a regular item foi consideration of risk and control and receives reports thereon from thè Senior Leadership Team and the Audil Committee. The emphasi5 is obtaining the relevafjt degree of assurance and not merely reporting by ÈxcÈption. This is 3 regular area revisited throughout the financial year. 20 ROSE BRUFORD COLLEGE OF THEATRE AND PERFOFiMANCE Fin?nos1 Staterrients'.YeartD 311uly 2023 The systern of internal control is based ott a framework of regular rnanagement inforEnation, administrativè procedures including the segregation of duties, and a system of delegatioll and accountability. This in¢ludes.' omprehensÉve budgeting systems with an annual budget, which is reviewed and agreed by the Board of Governors regtElar reviews, bythe Board of Governors, of periodic and annual financial reports which indicate financial perforrnancÈ ag3inst forÉt8Sts setting targets to measure financÉal and other performance he¢ks to ensure adherence to the financitl regulations clearly defined capital investment control guidelin the adoption of formal project rnanagèmÉnt disciplines, whère appropriate The system of internal control is designed to manage risk to a reasonable level rather than to eliminate 311 risk Of failure to athieve policies, aims and objertives- it tan therefore Clnly provide reasonable and not absolute assurance of effectiveness. It is based on an ongoing process desi￿ed to identify and prioritise the risks to the achievement of College ptsllcies. aims and objectlves, to evaluatÉ the likelihood of those risks bèing rÉalised and the impact should thèy be realis￿, 3nd to manage thèm Èfficiéntly, effèctivèly and ètonomic311y. The system of internal control has been in Pla￿ in Rose Bruford College for the year ended 31 July 2023 and up to the date of approval of the annual report and accounts. The system of internal control is based on an ongolng risk management proce55 designed to identifythe principal ri5k5 to the achievement of the strategic aims and objettives,. to evaluate the nature and extent of those risks; and to manage them efficiently, effectively and economically. The system of internal control is underpinned by CDmpliance with the requirements of the core Controls ￿sUranCe standards= Governance Financial Management Risk Management Dats Quality Assurance The College has an Internal audlt servl¢e, provided by RSM, ¢onforrns to the 'lntematic*nal Stsndards for the Professional Prattl￿ of Internal Auditin￿ and the'lnternational Professional Practices FrameworW IIPPFI as published by the Global Institute of Internal Auditors IIIAI. The work of the internal audit service is inft)rmed by an analysis of the r￿kS to which the College is exposed. and &nnual internal audit plans are based on this analysis. The analysis of risks and the internal audit plans arè endorsèd bythe Board on the recommendation of the Audit Committee. The appointed Internal Autlitors prDwde thè Board with a report on intemal audit actiwty in the College at least annually. The report incjudes the internal auditors. independent opinion on the adequacy and effectivÈness of the College's System of risk management, controls and governan￿ prO￿￿e5. For the year for 2022123, RSM ¢on¢luded that there are we3knesse5 in the framework of Risk management, Financial & Budget reporting and IT Operations. These areas have varying levels of risk and importance associated with them. The Board acknowledges the issu& raised and considers that progress is belng made to improve controls,systems, people and implement recommendations. 21 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Fin3nci35 StatemÈnts-. Yearkn 31July 2023 Revlew of effectlveness As Atctsunting Officer, the Principal has responsibilityfor reviewinE the effectiveness of the system of internal control. Their review of the effectiveness of the system of internal control 15 informed by.. the work of thè intèrn81 auditors the work of the executive managers within the College who have responsibility for the development and m3intenance of thè internal tontrol framework omments made by the College'5 financial statements auditors The Accounting Officer has been advised on the implications of the result of their review of the effectiveness of the system of internal control bythè Audit Committèe, whith oversees the work of the internal auditcir and other sources of assurance, and a plan to address weaknesses and ensure continuous improvement of the system 15 in place. The Senior Leadership Team feceives report5 setting out key performance and risk indicators and considers possible control issues brought to their attention by early warning mechanlsms, which are embeclded withln the departments and relnforced by risk awareness tralning. The Senlor Leadership Team and the Audit Committee also receive regular reports from internal audit and other source5 of assurance, which include recommendations for imprtsvÈmÉnt. Based on the advice of the Audit Committee and the Accounting Officer, the Board is of the opinion that the Collègè has an adequate and effectivè framewc>rkfor governan￿, risk management and control, and has fulfilled its statutory responsibility for "the effective ond efficient use of resource5, the 501vency af the institution and the body und the 5afeguorGéing of theira55ets Going concern In accordance with applicable law, United Kingdom Generally Accepted Accountlng Practlce and wlth the Articles of Association, the Governor5 of Rose Bruford CollÈgè of Thèatre and Performance are responsible for the administration and management of the affair5 of the College, including ell5uring an effective system of Internal control, and are required to present audited financial statements for each financial year. After making appropriate enquirie5, the Board considers that the College has adequate resource5 to continue in operational èxistènce for the foresèèable futurè. In reaching ihis conclusion, it notes the measures that the Senior Leadership Team have taken measures to address the strategic risks identified in the Operating and Financial Review. For th5s reason, It continuès to adopt the gtsing concern basis in preparing the financial statements. This judgement is dis¢ussed In more detail in the going Concern se¢tion, 31$0 In the OperatinE and Flnanclal Revlew. statement of Governors Responsibilities for the Financial Statemonts The Governors are responsible for keeping proper accountin8 record5 which disclose wilh reasonable accuracy at any time the financial posltion of the College and pnable them to en5urE that the fi'nancial statements are prepared in accordance with the Companies Act 2006, the Statement of Recommended Prartice on Attounting for Furthèr and Higher Education, othèr relevant aecounting standards, and the Accounts Direction issued by the Office for Students. In addition. the Governor5, through their designated officer holder, are required to prepare financial statements for each financial year which give a truè and fair view of the state of affairs of the College and of the surplu5 or deficit and cash flows for that year. 22 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Fin3ntial St3temeThts=Yearto 31July 2023 In Causing the financial statements to be prepared, the Governors must ènsure that= suitable accounting pollcies are selected and applied consistently jLsdgèments and estimates are made that are reasonable and prudent applicable accountlng standards have been followed. subject to any material departures disclosed and explained in the financial statements flnancial statements are preparèd on the going ccincern basls unl￿5 It is inappropriate tc* presume that the College wi51 contlnue in operation. The Governors are sat15fied they have 3dequate restsurces to continue in operation for the foreseeable future- for this reason, the going concern basis continues to be adopted in the preparation of thè financial statements The Governors havÈ taken reasonable steps to.. ensurethatfundsfrom the Office for Students are used only for the purposes for which they have been given and accordancè with the Ots Terms and Conditions of Funding for Higher Education Institutions for the period to 31 July 2023 ènd any other conditions which may from time to time be prescribed ensure that there are appropriate financial and management controls in place to safeguard publlc lunds and funds from other sources Dlsclosure of information to auditors The Governors who held office at the date of approval of this report confirm that.. so farasthèy are each aware, there is relevant audit information of which the College's auditor 15 urEaware,' and each Governor h3$ taken all the steps that he or She ought to have taken as a Governor in order to make himself or herself aware of any relev8Tht audit information and to e5tab115h that the companys audttor is aware of that information. Approved by order of the Governors on 23 Novèmber 2023 IEned on its behalf by: -l•Jh- jennifer Sims Chair of Governing Body Professor Randall Whittaker Principal, Chief Executive and Accounting Officer Signed on.. 25 January 2024 23 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Flnantiil Staiernents.. Ye3r to 31July 2023 Independent auditor'5 report Independent auditor's report to the members of Rose Bruford College of Theatre and Performance We have audited the financial stalements of Rose Bruford College of ThÈ3tre and Performance I'the College'l for the year ended 31 july 2023 which comprise thè statement of comprehensiv@ income, the statement of changes in reserves. the balance sheet, the Statement of cash flows, the principal accounting policies, and the related llote5. rhe financi31 reporting framework that has been applied In their preparation is applicèble law and United Kingdom Accounting Standards (United Kingdom GenerallyAccepted Accounting Pratticel and the statement of Recomrnended Practice on Accounting for Further and Higher Education. Opinion on financial stètements In our opinion the financial statements: give a true and fair view of the state of affairs of Rose Bruford College of Theatre and Performance as at 31 July 2023 and of its income and èxpenditure. gains and105ses, change5 in reserves and cash flow5 of the College for the year then ended,. have been properly prepared in accordance with the requirements of the Companies Act 2006 and with United Kingdom Generally Accepted Accounting Practice and the Statement of Recommended Practice on Accounting for Further and Higher Education. and in all material aspects, fund5 received for spècific purpose5 adrrinistered by the College have been applied only for the purposes for which they were received, and managed in accordance with relevant in all material respects, funds from the affice for Students IOfSI, UK Research and Innovation (including Research England). the Education and Skills Funding Agency and the Departmentfor Education have been applied in accordar)te the relevant terms and conditions,. and the requirements of the QfS'5 Accounts Direction to highèr èducation instituttons has been met. 8agis for opinlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standard5 are further described in the Auditorfs re5PQn5ibilities for the audit of the financial statements section of our report. We are independent of the College in accordan￿ with the ethl¢al requirements that are relÈv8nt to our audit of the financial Statements in the UK, including the FRC'S Ethical Standard, ènd we have fulfilled our other ethical responsibilities in accordan￿ with these requirements. We believe that the audit evidence we h3ve obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to golng concèrn In auditing the financial statements, we have concluded that the Governors, use of the going ctsncern basis of accounting 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 £ondition5 that, individually or collectively, may cast siglliFicant doubt on the College's ability to continue as a going tDncein for a period of at lÈast twelve months from when the financial statements are authori5ed for issue. Our respollsibilities and the responslbilities of the Governors with respect to going concern are described in the relevant sections of this report. 24 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE nanaal Statements.. YÈarto31July 2023 Other Informatlon The Govemckrs are responsible for the other information. The othèr inforniation coMpr￿e5 the information included in the annual reportotherthan thefinancial Statements and the auditorfs rèportthereon. Our opinion on the flnanclal sratements does not cover the other information and, exceptto the extent othenmise explititty stated in our report, we do not express anyform of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is tD read the other information and, in dotng so, constder whether the other information 15 materially inconsistent with the financial statements or our knowledge obt8inéd in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material mi55tatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement in the other information. If, based on the work we have performed, we conclude that there is a material misstatement in this trther iAformation, we are requlred to report that fatt. Opinion on other matter prescribed by the Companies Art 2006 In our opinion. b￿ed on the work undertaken in the course of the audit- the information given in the Govèrnors, rèport including the strategic report for the year for which the financial statements are prepared is consistent with the financial statements,. and the Governor5, report including the strategic report has been prepared in accordan￿ with appli¢able legal requtrements. Matters on which we are required to rÈport by exceptiort In the light of the knowledge and understanding of the Collegè and its enmronment obtained in the course of the audit. we have not identrfied any material misstatements in the Govèrnors, report including the strategic report. We have nothing to report in respect of the following matter5 which wè are required to report to you in, in our opinion.. the statement of internal control includèd as part of the Corporate Governance Statement is inton5I5tent with our knowledge of the College- the College's grant and fee income, as disclosed in the notes to the accounts, has been materially misstated; or the providerfs expenditure on accèss and participation actlvlties for the financial year ha5 been materially rnisstated- or adequate accounting records have not been kept,. or the financial statements are not in agreement with the acwunting records and rèturns: or certain disclosures of Governorg remuneration spècified by law a￿ not made,. or we have nL)t reteived all the information and explanations we rÈquire for our audit. Responsibiltties of Governors As explained more fully in thÈ Governorg responsibilities statement, the Govèrnors are responslble for the preparation of the financial statements and for being satisfied that they give a true and fairwew, and for such internal control as the Governors determine is necessary to enable the prepapation of financial statemènts that are free from material mi55taternent. whether due to fraud or error. In preparingthÈ financtal statements. the board members are responsible for assessing the College's ability to continue to continuè 3$ a going concern, disclosing, as applicable. matters related to going concèrn and using the going concern basi5 of accounting unless the board members Intend to liquidate the College or to cease operations, or have no realistic alternative to do so. ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE FIn3n¢￿?1 Statements.. Yearto al july 2023 AuditDrf5 rÈsponssb511tles for the audit of financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fiaud or error, and to issue an auditor'5 report that intludès our opinion. Reasonable assurance 15 a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detett a material misstatemEnt when it exists. Misstatements can arise from fraud or error and are con51dered materlal if, individually or in thè 8ggregate, they could reasonably be expected to influence the economic decision5 of users taken on the basis of these financial 5taternents. Irregularities, including fraud, are instances of non-compliance with laws and regulatlolls. We deslgn procedures in line with our responsibilitie5, Outlined above, to detect material mlsstatements in respect Df Irregularitie5. including fraud. The extent to which our procedures are capable of deterting irregularitiès, including fraud Is detailed below.. Our approach to identifying and assesslnE the risk5 of materi31 misstatement in respect of irTe8ularities, including fraud and non-coThgliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement teatn collectively had the 3ppropriate compètènce, capabilitie5 and skills to identify Dr recognise non-compliance with applicable laws and regulations,. we identified the laws and regulations applicable to thè College through discussions wr(h management, and frorn our knowledge and experience of the sector,. we focused on specific laws and regulations which we considered may have a dirèct material effect on the financial Statements or the operations of the Collegè, including the Further and Highei Eduiation Act 1992, fundinB agreements with the Ofs 3nd associated funding rules, OFS re8ulations, dat3 protèttion legislation, anti-bribery, safeguarding, employment, he31th and safety legislation, and principle Televant conditions of Ofs registration,. we asse55ed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence," and dentified laws and règulations were communicated within the audit team re8ularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the College's financial statement5 to material m5sstatement, including obtaining an understanding of how fraud might occur, bv.. making enquiries of management a5 to where they considered there was susceptibility to fraud, their knowledge of actUBI. SLfspected and alleged fr8ud- and considering the EJ)ternal controls in plac@ to mitigate risks of fraud and non-compllance wlth laws and regulations. To addre55 the r&sk of fraud through management bias and overrlde of controls, W￿.. perlormed analytical procedures to identify any unusual or unexpected relationships,. tested journal entries to Identify unusual transactions. and assessed whether judgements and assumptions made in determining ihe ac¢ounting estimates set out in the accounting polities were indicative of potential bi45. In response to the risk of irrègularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to.. agreeing financial statement disclosures tc> underlying Supporting document3tion,' reading the minutes of Governor5, meetings,. enquiring of management as to actual and potential litigation or ¢13lms,' and eviewing any relevant correspc>ndence reEulators and legal advisors. 26 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial 5tstsrnents_'Yearto 31July 2023 There are inherent lim¢(ations in our 3udit procedures described above. The more removed that laws and regulations arefrom financial tran53rtion5, the less likely it is that we would become 3ware of non-compliance. Auditing stand2rd5 also limit the audit procedures requiFed to identify non-compliance with laws and regulations to enquiry of the Board of Governors and othèr man3gement and the inspection of regulatory and legal correspondence, if any. Material mi55tstements that arise due to fraud can be harder to detett than those that arise from error 85 they may Involve deliberate concealment or collusion. A further descrtption of our responsibilitles Is avallable on the Financial Reporting Council's website at www.frc.org.uk/audttorsrèsponsibilities. This description fomis part of our audltor's report. Use of our report This report is made solely to the College's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audtt work has been undertaken so that we might state to the College's members those matters we are required to state to them in an auditorfs report and for no Ctther purpDse. To the fullest èxtènt permÉtted by law, we do not accept or assume responsibility to anyone other than the College and the College's members as a body, for L)ur audit work, for this report, or for the opinions we have formed. Katharinè Patel, Senior Ststutory Auditor for and on behalf of 8uzz8COtt LLP 130 Wood Street London EC2V 6DL 22 February 2024 27 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Fin3nci31 Statements.. Yeaito 31jU￿ 2023 College and Group Statement of Comprehènslve Income Year lo 31 July 2023 College & Group 2022 £'ooo College 2023 £'ooo Group 2023 £'ooo Notes Income Funding body grants Tuition fees Other income Investment income 2,428 9,564 2,338 li 2,428 9,564 2,755 li 1,467 9,313 1,807 Total income 14,341 14,758 12,588 Expenditure Staff costs Other operating expenditure Depreciation Interest payable Total expenditure 6,084 7,284 725 6,162 7,714 726 5,646 7,100 451 io io 44 14,103 14,612 13,241 Surplus / (Deficit) before other galns and losses 238 146 16531 Artuarial gain in respect of pension schemes Total comprehensive income for the year 14 575 575 2.821 2,168 813 721 Represented by: Restricted comprehensive income Unrestricted comprehensive income 813 813 721 2,168 2,168 721 28 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Fin3nC￿l StstÈments'.Yearto 31July 2023 Group Statement of Changes in Reserves Year to 31 July 2023 Inc()me and expenditure Revaluation acwunt reserve £'ooo Total £'c￿0 £'ooo Reserves balan￿ at l August 2021 2,325 735 3.060 Defjctt from the income and expenditurè account Other comprehensive income- actuarial gains Transfers betseen revaluation and income & expenditure reserves Total comprehensive in¢ome forthe year ended 31 July 2022 16531 2,821 io 16531 2,821 iioi iioi 2,178 2.168 Resèrves balance at 31 July 2022 4.503 725 5.228 Reserves balance at l August 2022 4.503 725 Surplus from the income and expenditure account Other comprehensive inwme- actuarial gain Transfers between revaluation and income and expenditure reserves Total comprehensivè income for the year ended 31 July 2023 146 146 575 575 io iioi lioi 731 721 Re5erve5 balance at 31 July 2023 5,234 715 5,949 29 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial Statements.. Ye8rto 31 Ivly 2023 College and Group Balance Shoot As at 31 July 2023 College & Group 2022 £'ooo Notes College 2023 £'ooo Group 2023 £'ooo Fixed a55ets Intangible assets Tangible assets 74 74 127 9,842 9,916 9,847 9,921 10,146 10,273 Current assets Debtors io 1,626 1,923 3,549 1,435 1,932 3,367 576 Cash at bank and in hand 2,196 2,772 Liabilities Creditors-. amounts f311ing due within one year li 12,509} 12.4241 12,1721 Net current assets 1,040 943 600 Total assets less current liabilitie5 10,956 10,864 10,873 Creditors.. amounts falling due after one year 12 14,915) {4,9151 15,1991 6.041 5,949 5,674 Provislons Net pension asset / Iliabilityl Totsl net assets 14 14461 5,228 6,041 5,949 Unrestrlcted reserve5 Income and expenditure account Revaluation reserve 5,326 715 5,234 715 4,503 725 Total unrestricted reserves 6.041 5,949 5,228 Approved by the Board of Governors and signed on its behalf by.. jennifer Sims Professor Randall whittaker Chair of Governing Body Principal, Chief Executive and Accounting Officer Approved on 23 November 2023 and signed on 25 January 2024 Rose Bruford College of Theatre and Pèrformance CDmpany registration No(K)508616 (England and Wales) LJQ *- 30 ROSE BRUFORD COLLEGE OF THEATRE AND PERFOFiMANCE nancial Ststements.. Yearto 31JuW 2023 College and Consolidated Statement of Cash Flows Yearto 31 Juty 2023 Group & College 2022 £'ooo College 2023 £'ooo Group 2023 £'ooo Cash flows from operating attÉvitÉes Surplus / (Deficit) for the year Adjustment tor non-cash ttems Depreciation Ilncreasel / Decrease in debtors Increase / (Decrease) in credltors due wlthin one year Pensions costs less contributions payable Adjustmènt for investing or finan¢ing artivities Investment income 238 145 16531 725 726 18591 252 451 11,0501 337 128 1901 422 129 129 Iii) io 13271 51 Iiil io iii Interest payable Capital grant income Nèt cash flows pr(wided by/operating activities 327 11511 150 66 Cash flows from investinq artivitie5 Capltal grants receipts Investment income 43 1,998 li li Payment5 made to acquire fixed assets Net cash flows lused in) investing artivities 13681 13141 13751 13201 12,0001 Cash flows from financrng actÉvities Interest paid Net cash flows used In finandng actlvities iioi iiol 1441 1441 lio {Detteasel I In¢rease in cash and cash equlvalents in the year 1273) 12641 105 Cash and cash equivalents at beglnnlng of the year 2.196 2,196 2,091 Cash and cash equivalents at the end of the year 1.923 1,932 2,196 31 ROSE BRUFORD COLLEGE OF THEATFiE AND PERFORMANCE Financial Statements.. Ye3rto 8lJuly 2023 Notes to The Financial Statements l Accounting policie5 The following accounting policies have been applied consistently in dealing with items which are considèred Naterial in relation to the financial staternents. al Basis of preparation These financial statement5 have been prepared in accordance with thè Statèmènt of Recommended Practice.. Accounting for Further and Higher Education 2019 (the 2019 FE HE SORPI, the Office for Students, accounts direction for periods beginning on or after l August 2022, and in accordance with Financial Reporting Standard 102 -'The Financial Reporting Standard applicable in the United KinÈdtsm and Republic of Ireland" IFRS 1021. The College is a public benefit entity and has therefore applied the relevant public benefit requirements of FRS 102. The preparation of financial 5t3tements in compliance with FRS 102 requires the use of certaln crltlcal accounting estimates. It also requires management to exertise judgement in applying the College's accounting policies. bl Basis of Consolidation The group financia5 statements include Rose 8ruford College IthÈ parent company, also referred to as the College) and its 5ubsidi4ry undertaking, Rc>se Bruford International Lirnited. Intra-group sales and profits are eliminèted fully on consolidation. The group financial statemènis do not include the income and expenditure of the Student's Union as thè School does not exert control or dominant influence over PDlicy decisions. cl Basls of accounting The financial statements are prepared in 3ccordancÈ with the historical cost convention, as modified using previou5 valuations, as deemed cost at transition for certain non-currenl a55etS. dl Going concern The financial position of the College is set out in the above 'Financi31 Revièw, and stated in the primary accounting statements and the accornpanying note5. The College achieved a surplus 2023, when compared to 2022. It was also contlnued to Eenerate positive cashflow from operating activities, building on the improvement from 2021. Work to reduce costs, and the positive changes from the 'single academic frameworv, which are expected to result in courses that are both attractive to the market. Bnd Bffordable to deliver, are also being implemènted. The Board has conducted its assessment, in the context of the College currently having no borrowings. but assets that could, as has been the case in the past, be used to secure working capital fund5. The Board h35 revsewèd monthly cash flow5 through to July 2025, and detailed budgets for 2023124 and 2024125. All of these documents show the College having positive cash balances, with a rea50nable margin for working capital, for both 12 months from the date of ihis reports approval, and for the foreseeable future. The College is currently reviewing its strategy to the period 20127 with regard to the attainment of an increased number of students, particularly with rÈg3rd to overseas students. Should these number5 been achieved, its financial position will improve significantly. The board believe the scope to increase over5e3s numbers is available due ro the relatively low numbers currently in tuition. The College does face a number of challenges. the primary risk being a failure to recruit to target for October 2023 and beyond. Should this risk occur, there would bÈ a further strain on cash flows. But, having taken account of the mitigations, also noted above, and acknowled8in8 the 5en51tivity of cash flows to these risks otcurring, the GoveTnors are 5aii5fied that their impact is manageable. Having £onsidered the above information, the Governor5 CDn5ider that its appropriate for the College to prepare its Financial Statements on a Eolng concern basis. 32 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financl815tatsments'.Yearto 31JuW 2023 èl Reto8n¢tion of income Income is recognised according to its c3tÈgorisation, as detailed below.. Recurrent Grants The recurrènt grants from the ofs. representing the funding allocation attributsble to the Cu￿erit financial year, are credited dlrectly to the income and expenditure account. Tuttion fees Income from tuition fees is recogni5ed in the period for which it is ￿e￿ivable and includes all fees chargeable to students or their sponsors. Investment Incomè Income from short-term dep051ts 15 credited to the income and expenditure account in the period in which it is earned. Donatlons and endowments Donations with no restrirtions are recognised in income when the College is entitled to> the funds. Capital grants Government capital grants are c3plt3llsed, belng held as deferred Income, and recognised in income over the expected useful life of the asset. under the accruBls method as permrtted by FRS 102. Other capital grants are recognised as income when the College 15 entitled to the fun(ts, subject to any performance related conditions being rHèt. Accounting for post-employment benefrts Post-employmènt benefits to employèès of the College are provided by the Teachers, Pension Scheme ITPSI, the Local Govemrnent Pension Scheme ILGPSI and NEST. The TPS and LGPS are defjned benefit schemes, which are externally funded. The NEST pension scheme is a defined contribution scheme. The TPS is art unfvnded s¢heme. Ctsntributions to the TPS are calculated $0 as to spread the cost of pensiclns over employee< working lives with the College in such a way that the pen510n cctst is a substantially level percentage of current and future pensionable payroll. The contributions are deterrnined by qualified actuaries gn the basis of valuations using a prospective benefit method. The TPS is a multi-employeT scheme and the College is unable to identify its share of the underlying 35sets and liabilities of the scheme on a consistent and reasonable basi5. The TPS is therefore treated as a defined contribution plan and the contributions recognised as an expertsè in thè incomè statemènt in thè pèriods during which services arè rendered by Émployèes. The LGPS És a funded scheme. The assets of the LGPS are measured using closing fair value5. LGPS liabilities are measured using the projected unit credit method and discounted at the current rate of return on a high-quality corporate bond of equivalent term and curreney to the li8bilities. The actu3rial valuations are obtained at1è3gt triennially and are updated at eath balance sheet date. The amounts charged to staff costs, 8s incurred, arè the current service cc>sts and the costs of scheme introductions, benèfit Changes, settlements and curtailments. Net interest on the net defined benefit liability/asset is also recognised in the Statement of ComprehensNe Income and comprises the interest cost on the defined benefit ob5igation and interest income on the5cheme assets, calculated by multiplyingthefair value of the scheme assets at the beginnlng of the period by the rate tssed to dlscount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other re¢ognised gains and lossès. Actuarial lossès arè recognisèd immediately ift other recognised gains and losses. Actuarial gains are recognised to the extent that they are considered to be recoverable. The NEf scheme contributions are recognised as an expense in the income statement in the perlods durlng which servic& are ￿ndered by employe￿. gl Short term employment beDefits Short term employment benefits such as 53laries and compensated 3bsences Iholiday payl are recognised as an expense in the year in which the employees render 5eryice to the College. Any unused benefits are accrued and measured as the additional amount the Ccillege expects to pay as a result of thè unused entitlement. 33 ROSE BRUFORD COLLEGE OF THEATRE AND PEFiFORMANCE Financial Statement5'.Yearto 31 July 2023 h) Non-current assets- Tangible lixed assets Land and buildings are stated in the balance sheet at valuation on the basis of depreciated replacement cost. Certain items of fixed a55et5 that had been ievalued to fair value on or prior lo the date of transition to the 2019 FE HE SORP, are measured on the basi5 of deemed cost, being the revalued amount at the date of that revaluation. Depreciation is provided on all tangible fixed assets, at rales calculated to write them off, less residual value, over their expected useful lives as follows.. Long leasehold land and buildinE5= 50 year5 Christopher Court long leasehold.. 35 years Leasehold improvements= 30 years Tomporary buildin8s= 30 years Fixtures and fittings.. ID years Equipment (excluding IT). including furniture.. 10 year5 Computers and other IT equipment.. 4 year5 No depreciation Is provlded on freehold land. Where land and buildings are acquired with the aid of specific grants, they are capitalised and depreciated as above. The related grants are credited to a deferred income account within creditors and are released to the incomÈ and experEditure account over the expected useful econornit life of thè relatÈd assèt on 8 Svstematic basis consistent with the depreciation policy. The deferred income is allocated between creditors due wlthin one year and those due after more than one year. A review fDr itllpaiiment of a fixed a55et is cairied out if events or change5 in circymstan¢es indirale that the tarrying amount of any fixed a55et may not be recoverable. Where slgnificant expenditure Is Incurred on tangible fixed assets it is charged to the statement of comprehensive income in thp. pp.riDd it is incurrgd, unless it meets one of the following criteria, in which cèse it is capitalised and depreciated on the relevant basis.. Markèt value of the fixed asset ha5 subsequently imPlDved Asset capacity increases Substantial improvement in the quality of output or reduction in operating costs Significant extension of the a55ets life beyond that conferred by repairs and maintenance Equipment costing les5 than El,Offt per individual itern is recognised as expenditure in the period of acquisition. All other equipment is capitalised at cost. 11 Non.current assets- Intangible fixed assets Perpetual computer software licence5 and associated external installation costs, and with a minimum cost of EI,000, are categori5ed as intsngible assets, and depreciated over a period of four years. jl sorrowing cost5 BorrowinÈ costs are recoBni5ed a5 expenditure in the period in which they are incurred. kl Cash and cash equivalent5 C85h includes cash in hand, depostts repayable on demand and overdrafts. Deposits are repayable on demand if they are in practice available within 24 hour5 Wlthout penalty. Cash equivalents are short term. highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value. An investment qualifjes as a cash equivalent when it has maturity Df 3 months or less from the dhte of acqui51tion. 11 Taxation The College is considered to pass the tests set out in Paragraph I Sthedule 6 Finance Act 2010 and therèfore it meet5 the definition of a charitable company for UK corporation tax purposes. Accordingly, the College 15 potentially exempt from taxation in respect of Income or capltal galns received wlthln categories covered by sections 478-488 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the Èxtent that such income or gains a￿ applied exclusively to charitable puip05es. ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Anan￿41 St8rements'. Yearto 31 ju￿ 2023 The College is partially exempt in respect of Value Added Tax, $0 that it can on]y recover a small proportion of the VAT charged on its inptrts. Irrecoverable VAT on inputs is included in the costs of such inputs and added to the cost of tèngiblefixed assets as appropriate, where the inputs themselvès are tsngible fixed assets by nature. ml Fin8ncial liabilities and equity Financial liabilities and equity are classified a¢¢ording to the Substan￿ of the financial instrumenys coFntrattual obligatÉons, rather than the flnancSal instrumenys legal form. All loans, investments and short-term deposits held by the College are classified as basic financial instruments in accordance with FRS 102. These instruments are initially recorded atthe transaction price less any transaction Costs Ihistorical costl. FRS 102 requirÈ5 that basicfinanual Instruments are subsequently measured at amortised cost. however the College has calculated thatthe difference between the historical costand 3mortised cost basis is not material and so these financial instruments are statÈd on the balance sheet at historical cost. Loans and investments that arÈ payable or receivable within one year are not discountèd. n) Provi5i0ns and contingent liabilities PrO￿SiOnS are recognised when the College has a present legal or constructNè obligation as a result of a past event, it is probable that a t￿nsfer of economic benèfit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the effect of the time value of money is material, the arnount expetted to be required to sèttle the obligation is recognised at present value using 3 pre-tax discount rate. The unwindlng of the discount is recognised as a finance cost in the statement of comprehensNe Income in the period it arises. A contingent liability arises from a past event that gives the College a possible obligation whose existenc2 will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the contrttl Df the College. Contingent liabilities also arise in circumstances where a provision wovld otherwise be made but either it is not probable that an oufflow of resources will be required, or the amount of the obligation cannot be measured rèliably. Contingent liabilities are not recognised in the balance Sheet but are disdosed in the notes to the financial statements. ol Judgements In apptying accountlng policie5 and key sOUr￿S of estimation uncertalnty Preparation of the financial statements rèquires Governors to mBke Significant judgements and estSmates. The items in the financial statements where these judgements and estimates have been made include the estimation of the useful economic life of tanglble fixed 85sets for the depreciation chargè and periodic Calculation of provisions. Fixed assets are depreciated over their usefijl lives consldering residual values, where appropriatè. The actual lives of the assets and residual values are assessed annually and may vary depending on several factors. In re- a5se55ing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Residual value asse55rnents ¢onsider issues such as future market conditions, the remaining life of the asset and projected disposal values. The present value Of the Local Government Pension Scheme defined benefit liability depends on sèveral factors that are determined on an attuari31 basi5 using a variety of assumptions. The assumptions used in determining the net cost lincomel for pensions include the distount rate. Any changes in these assumptions. which are disc105ed in the notes to the FÈnancial Statements, will irnp3Ct the carrying amount of the pension liability. Furthermore, a roll forward approach which projerts results from the latest full actuarial valuation performed at 31 March 2022 has been used by the èrtuary in valuing the pension5 liability at the balance sheet date. Any dlfferen¢es between the figures derived from the roll forward approach and a full 3ctU3ri31 valuatlon would impact on the carrying amtrunt of the pension liabilÉty. pl Long term maintenance Expenditure on long-term Maintenan￿ 15 charged to the statement of comprehensive income as incurred. q) Leased assets Rentèls paid under operating leases are charged to the statement of comprehensive incomÈ on o straight-line basis over the lease term. ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE FiAdnCi31 Ststernen15.' Year to 3LJuW 2023 rl Foreign currencles Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at the dates of the transactions. Monètary assets and liabilitie5 denominated in foreign currencies are translated into sterling either t yèar end rates or, where there are related forward exchange contracts, at contract rates. The resulting exchange dlfferences are dealt with in the determination of incorne and èxpenditure for the financia1 year. 51 Reserves Resèrves are classified as restricted or unrèstricted. Other restrirted reserves include balances wheie the donor ha5 designated a specific PUTPOSè and thprefore the College is restricted in the use of these fund5. 36 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE FIDanci31 Ststements=Yearto 31Juty2023 l Funding body grants College & Group Z023 £'ODD College & Grovp 2023 £'ooo College & Grovp 2022 £'ooo College & Group 2022 £'ooo Recurrentfundlng Off1￿ forStudents-Teachlng Research England- Researth Office for Students- Other 1.540 442 407 427 119 2,101 1.316 Release Of deFerred capital grants Oflice for 5tudents- Equipment Office for Students- 8uildings 209 33 118 327 151 2,428 1,467 2 Tuition fees College & Group 2023 £'ooo College & Group 2022 rooo Horne full-time under8radu8te Horne full-time postgraduate Home part-time undergraduate Home part-time postgraduate erseas Inon-ECI undergraduate (￿erseaS Inon-ECI postgraduate PhD 6.457 509 6,064 798 143 174 12 759 1.024 661 877 14 716 Non-cr2dtr bearing course fees 653 9,564 9,313 3 Other intome College & Group 202Z College 2023 £'ooo Group 2023 £'No Rent receivable- Campus Rent Teceivable- student residences Catering service5 ERA5MU5. Turin8 and other rnisc. grants Income from donations and lègacies Income from Short COu￿e$ 3nd produ¢bons other Income 68 68 62 1,244 1,609 52 1.318 138 138 98 34 852 34 852 47 275 2,338 2.755 I￿07 37 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial 5t3tement5'. Yearto 31 July 2023 4 Details of grant and fee income College & Group 2023 E'OOO College & Group 2022 t'ooo Grant Income Irorn the Offire forstudents Grant incorne from Research England Grant Income frorn other bodies Fee income fortaught awards Fee income for research award5 Fee income foi DDn-qualifying courses 1.986 442 1,060 407 L38 98 8.583 14 8,904 653 716 L2,130 10.878 5 Staff costs Colle2e & GrL)UP 2022 College 2023 Group 2023 Stzff costs durinEthe yÈar were a5 follows.. Wège5 and sa13rtres Social security tosts OthÈr penslon costs Slestructuring costs 4,613 482 4,691 4,062 413 935 53 935 53 1,154 17 6,084 6,162 5,646 College & Group 2022 College 2023 Group 2023 No The average number of employees, on 3 headcount basis, as Ènalysed byfunction was.. 83 93 80 AdministrativÈ Techn1￿1 Premises 66 70 67 15 15 L65 185 170 The Governtrrs rèceived no remuneration in respect of thelr services as Governors. During the year ended 31 July 2023, certain member5 of the ColSege staff lexcludlng the Principal, see below) served a5 Governor5 and received remuneration lincluding benefits-in-kind and pension contribution51 for teaching and management service5 amounting to £94,76712022.' £85,987). Expenses were pald to. or Dn behalf, of onè Board member were £10812022= £1171- This represent5 travel and subsistence expenses incurred in attending Board, Committee meetings and èvents in their official capacity. One 12022.. Two) Independent Governors received renumoration of £3,14412022.. £4,920) in respect of shori terms visiting professional engagements undertaken at the College. One Student Governor12022-. Nil) received an expense payment relating to tourse materials of £iii12022'. £Nill. 38 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial Ststernen&-Yearto 31July 2023 6 Staff costs {continued} Key rnanègement personnel Key management personnel members of the Senior Leadership Team, those person5 having èuthtsrity and responsibility for planning. directing, and controlling the activities of the College. College & Group 2023 No ColleEe & fjioup 2022 No The number of key management personnel. indudin£ the Accountlng OffiTrr, was: College & Group 202a £'ooo College & 2022 £'ooo Key rnanagernent personnel ernolurnents are made up as follows: Salaries Benefits in kind 538 453 538 ios 457 Pension ttrntributions 94 Total omoluments 643 551 Numbers of staff members with emoluments (including taxablè benefits but excluding employer's pen5i0n contributions) in excess of £lOO,OOCI= College & Group 2023 College & Group 2022 No £125.001-£130,000 £130,DOI- £135.000 There were no amounts dueto key management personnel that were waived in theyear, nor anysalary sacrifice arrangements in place. The Principal's (Accountable Officerl salary is set by the Remuneration Committee. The Committee complies with the Committee of University Chairs ICUCI Highèr Education Seniorstèff Remuneration Code. Prinelpal's emoluments 2023 1-8-22 to 30-09-22 2023 1-10-22 to 31-7-23 Year lanes Compensation for loss of office Bertefrts in kind 21,079 70,046 112,136 126,472 3,641 130.113 91,125 16,000 4,026 111,151 112,136 Payments in litu of penslon contrlbutions Penslon Contributions 26,554 138,690 24,156 154,269 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial Statements.'Year to 31 July 2023 6 Staff costs Icontinuedl On a full-time equivalents, basis, the salary payable to the Accounting Officer is 4.60 times the median salary of £28,325 excluding emoluments and 4.82 times the median salary of £33,452 including employer pension contributlons ènd any other employee benefits. Compensation for loss of office Excluding the Principal Idi5closed above), there were three12022.. two) payments to staff as compensation for 105s of office, totalling £22,53612022.' £16,710). 7 Other operating expenses College & Group 2022 f'ooo College 2023 É'ooo Group 2023 £'ooo Acadernic departments Academic servl¢e5 Premises Administration Other expenses 3,360 83 3,360 83 2,596 97 2,315 1,145 381 2,733 1,157 381 2,650 997 760 7,284 7,714 7,100 Other operating expense5 include.. Group 2[123 £'ooo Group 2022 £'ooo EKterTral audttorfs remuneration= Flnancial staternents audit Financial Staterments audit of Rose Brutord Ilnternationall Limited Other servlces 29 22 17 Internal audtt 31 23 Op@ratln8 lea5es-. Land anLf bullding Equlpment 967 864 12 24 8 Analysis of expendlture by attivity other operatlng Expea5es Colle8È 2023 TDt¥l £'ooo StafF Interest *ar£e £'ooo Depreclatlon £'ooo Academic dÈpèrtment5 3,510 3,360 372 7,244 Academic services 493 83 576 Premlses 291 2,315 299 2.905 972 1,145 383 54 io 2,181 1,199 Othèr èxpenses 818 6,084 7,284 725 io 14,103 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial Statements.'Yeèrto 31 July 20 8 Analysis of expenditure by activity Icontinuedl Othèr opetstthg expense$ 6rovp ZOZ3 Totsi Staff tosts £'ooo Irter￿t charge £'ooo Deprecl3tion At8demlc departments Atsdtmicservices 3.514 3,360 373 7348 493 576 Premis 321 2,733 3,353 Administrdtio 929 1,157 381 54 io 115D 1,186 Other expenses 805 6,162 7,714 726 io 14,612 College & Group 2022 Totsl Other operaring expenses Depreoation Staff t¢sts £'ooo Intere# chargÈ rooo demi¢ departments demie5ervic 3,085 2.596 ￿2 5,813 433 97 530 Premis 213 2.650 268 3.131 AdtDinistTrtion other ¥Ypen5e5 1,115 799 997 51 208 760 1,559 5.646 7.100 451 13.241 9 Fixed assets Long leasehold land and buildkng5 £'th)O Itrtanglb .501￿are L@a5ehold mprov ments SThdudiTr¥ FSE £'ooo Ctsll¢¢e 2028 Cost orvaluation At LAu8ust2022 Additions DIspO￿lS At31JuFy2023 255 11,014 1,281 62 7.811 306 20.361 368 11,OL4 1,343 8,118 20,729 D£prsdation At l August 2022 Chargeforthe year Disp￿11 At3LJuly2023 128 4,371 221 187 5,402 374 10,088 725 53 77 181 4,592 2S4 10.8 NÈt bDokvalue At31Juty 2023 At31jU￿ 2022 6,422 1,079 1094 2341 2,409 9,916 10,273 127 41 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial Ststements.. Yearto 31 July 2023 9 Fixed assets {¢ontinuedl Lon8 le¥$4ho L4nd Ené buildlws eooo Other a￿ets cludln8 FFE ]ntan￿￿e -5¢f￿ale Lea5ehtshl lThpro¥ ments Group 2023 £'uoo £'ooo £'ooo Costor valuatioIi At l August 202Z 255 11.014 1,281 62 7,811 312 20,361 375 Di5P95315 At 31 july 2023 255 11,014 1,343 8,123 20,735 eprÈclatlon At l August 2022 Char8e fortheyear Di5wsal At 31July 2023 L28 4,271 211 187 5,402 374 10.088 726 53 78 Igi 4,592 265 5,776 10,814 Net6ookv3lue At31 july 2023 At 31July 2022 74 6,422 6,643 1,078 1,094 2,347 2.409 9,921 10.273 127 The c05t and valuation of13nd and buildings is as follows.. Freehold land £'ooo Long lea5thoid £'ooo At valuatlDn in October 1995 Subsequent addltions at cost 1,400 9,614 11,014 Valuations were prepared in October 1995 by an indepèndent firm of Chartered Surveyors. As a speciali5ed property unlikely to be sold to a single occupiér on the open market for a continuation of its existing use, the basi5 of valuation is depreciated replacement cost, not open market value for the existing use. The valuations had been made in accordance with the Statement of Asset Valuation Practice and Guidance Notes published by the Royal Institution of Chartered Surveyors. Land and buildings with a net book value of £6,422k12022.. £6,643kl and a cost of £11,014k have been partly funded from Treasury sources. Should these particular properties be sold, the College would eithèr have to Surrender the grants rèceived to the Treasury or use them in accordance with the HEFCE Memorandum of Assurance Bnd Accountability with the Higher Education Fundin8 Council for England. The total exchequer interest in the estate at to 31 July 202315 £2,281k12022.' £2,520kl. 43 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financi31Ststernenr¥Yearto31July 2023 10 Debtors Coltege & GroLtp 2022 £'o( College 202a £'ooo Group 2023 Trade debtors other debtors Prepayments and accrued income Intercompany 469 430 216 103 257 674 674 330 170 L626 IA34 576 11 Creditors: amounts falling due withSn one year Q)Ilege & Group 2022 £'ooo College 2023 Group 2023 £'ooo H M Revenue and Customs Trade creditors Pension schemes Accruals 99 113 283 107 463 388 87 91 703 717 491 779 Advano fee income and deposits Deferred capltal grants 800 360 864 360 316 2.509 2,424 2,172 12 Creditors: amounts falling due after one year ollege & Group College & Group 2022 £'ooo 2023 £'oDo 4,915 Deferred incorn&-governtnent capr181 grants 5,199 5.199 4,915 Deferred Income relates to government capital grants which are re￿gnIsed as income over the life of the assets to which they relate. Deferred In¢ome College & Grovp 2023 £'ooo CollegÈ & Group 2022 £'ooo De*erred income at l August 2022 Released durin8 the year Resources deferrèd in the year Deferred income at 31 ju￿ 2D 5,511 13271 9Q 3.665 I￿1) 1.997 5,511 5,274 13 Lease commitments Operating leases The Grctup has the following total commitments under non-cancellable operating leases.. 2023 2Q22 Land and buikling5 Land and buildinES E'o Equipment £'ooo equipment £'ooo 43 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Finanaal 5tstements.' Yearto 31 july 2023 No later than one year Between l and 5 years After 5 year5 977 959 3,906 21,567 26,450 3,906 22,543 27,408 17 17 26 The land and buildings commitment at 31 July 2023 relate5 to the thirty five yèar lon8 lease arrangernent wlth Purelake New Home5 Limited for the 168 room Student accornmodation and teaching 5p8ce at Christopher Court, Station Road, Sidcup, Kent frorn September 2015. These figures are derived using the 2023124 confirmed rent payments, and are subject to an annual *ntrèase equal to the Retail Prices Index. 14 Defined benefit obligations The College's Èmployees belong to two piincipal pension 5themes'. the Teacher5, Pension Scheme England and Wales ITPSI for academic and related staff,. and the Local Government Pension Scheme ILGPSI for non-teaching Staff, which is manag8d by London Borough of Bexley. Both are defined benefit schemes. Employee5 of Rose Bruford Ilntèrnationall Limited are enrolled in a defined contribution pension scheme. 2023 rotal £'ooo 202Z Total £'ooo The pension costs are a55e55ed Teachers, PenSlDn Stheme= Contrlbutions paid 494 457 Local Gov¢r#ment Pen5$0n S¢hÈmÈ: Contributions paid FAS 10212818dlustment Total pen5ian cost foryear wSthin staff ¢o#s 1,146 accordance with the advice of indcpendent qualified actuaries. Prictr to 31 July 2023, the latest hctuarial valuation of the TPS related to the period ended 31 March 2016 and of the LGPS 31 March 2022. A further valuation of the TPS scheme, relatin8 to the period ended 31 March 2020 wa5 published in October 2023. There were no outstanding or prepaid contributions at either the beginning or the end of the flnancial year. 344 97 328 361 935 Teachers, Pension Scheme The Teachers, Pension Scheme ITPS) is a statutory, contributory, defined benefit scheme, governed by the Teachèrs, Pensions Regulations 2010, and, from l April 2014, by the Teachers, Pension Scheme Regulations 2014. These ￿gUlatIOnS apply to teachers in schools and other educational establishments, including academies. in England and Wales that are maintained by IL)cal aulhorities. In addition, teachers in m3nY independent 3nd voluntary-aided schools and teachers and lecturers in some Èstablishments of further and higher education may be eligible for membership. Membership is automatic for teachers and lecturers, but they are able to opt out of the scheme. ThE Teochers, Pension Budgeting ond Vrjluotion Account Ithough mèmbers may be employed by various bodies, their retirement and other pension benefit5 are set out n regulatlons made under the Superannuation Act 1972 and are paid by public fuMd5 provided by Parliament. The TPS is an unfvnded scheme and mèmbers contribute on a'pay as you go, basls- these contributions, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Act. The Teachers, Pensions Regulations 2010 require an annual account. the Teachers, Pension Budgeting Bnd Valuation Actount, to be kept of receipts and expenditure Ilncluding the cost of pension increase51. From l April 20Ql, the Account ha5 been credited with a real rate of return, which is equivalent to a55uming that the balance in the Account 15 invested in notional invesiments that producÈ that real rate of return. 44 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial Statements.. Yearto 31July 2023 Voluaiion of the TeoGhers'Pen5ion ScherFye The Government Actuary, using normal attuarial principles, conducts a formal actuarial review of the TPS in accordance with thè Public Servite PÈnsions IV31uatians and Employèr Cost Capl Directiong 2014 pub5ished by HM Treasury every4 years. The aim of the review isto specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other fartors. The actuarial valuation of the TPS which applied durlng the year ended 31 July 2023 was carried o)ut as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsèquent consultation which applied during the year ended 31 July 2023 are 14 Defined benefit obligations (continued} new ernployer eontribution rat￿ were set at 22.68% of pensionable pay linGluding administration fees ofO.08Y total scheme liabilities for service to the effective date of £218.1 billion, and notlon31 assets of £196.1 brllion, giving a notional past servtce deficit of £22.0 billion an employer cost cap of 10.9Yo of pensionab5e pay The revlsed employer contrlbutlon rate forthe TPS was implemented from September 2019. Afull copyof the valuation report Jrtd 5UPPOrting documentation can be found on theTeachers' Pension Scheme website at the following location.. htt www.leachers en%ic>ns.CO,U news em lo ers 2019 04 teacher5- ensions-valuation-re ort.as The pension costs paid to the TPS in the year ended 31 July 2023 amounted to £685k12022= £650kl, of which employer's tontributions totalled £494k 12022- £457kl and employees contributions totalled £L91k I20￿= £181kl. FRS 102 f28) Under the definitions set out in FRS 102128.111, the TPS is a multi-employer pension plan. The College is unable to Identrfy Its share of the underlying assets and liabilities of the plan. Accordingly, the College has tsken advantage of the exemption in FRS 102 and has accounted for its contrib¢Jtions to the schemÈ as if tt wère a dèfined-contribution plan. The College has set out above the information available on the plan and the implications for the College in terms of the contribution rates. Local Government Pension Scheme The LGPS is a funded defined-benefit plan, with the assets held in separate funds adrninistered by the London BoroLkgh of Bexley Local Authority. The total CL)ntributions made for the year ended 31 July 2023 were £447k 12022= £450kl, of which employerfs contributions totalled £334k12022: £328kl and employees, contributions tcttalled £113k12022- £122kl. The agreed contribution rates for ftrturè years are 18.2% for employers and range from S.5% to 12.5% for employees, depending on salary. PrincipalActuurialAssumptions The following information is based upon a full actuarial valuatioll of the fund at 31 March 2022, updated to 31 July 2023 by a qualified indèpèndent actU8ry. At 31 July 2023 At 31 July 2022 Rate of Increase in salaries Future pensions increases Discount rate fDr scherne liabil￿cleS Inlation assumption ICPII 42 45 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Flnanclal stsiements.- Year 10 31 july 2023 14 Defined benefit obligations Icontinuedl The current mortality assumptions include sufficient allowance for future iEnprovements in mortality rates. The assumed life expectatlons ON Tetirement age 65 are-. At al July 2023 At 31 July zozz Years Year5 Retlring todav Males Fernale5 21.4 22.3 23.6 25.1 Retirin8 in 20 years Male5 22.3 23,9 Females 25.4 27.1 The College'5 shale of the assets in the plan at the balance sheet date and the expected rales of return were.. Value at 31Julv 2023 Value at 31 July 2022 £'ooo Equity instruments Government Bond5 Debt instruments 3,983 3,020 3,592 1,214 1,317 1,667 689 1.811 10,290 Property Cash / liquidity Other 902 51 2,179 10,135 College'5 share of assets-. A¢tual return on plan assets 392 117 The amount ixduded in the balance sheet in respect of the defined benefil pension plan is a5 follow5.' 2023 Total 2022 Total vooo Fairvalue ol plan a55ets 10,135 18,9871 11,1481 10,290 110,7361 Adjustment recDgni5ed in the actuarial gains to cap the scheme surplus Net pen5ion5 liability 14461 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE FiDan¢i31 Staternents.'Yearto 31Juty 2023 14 Defined benefit obligations (continued) Local Government Pension Scheme Icontinuedl Income recognised the Statement of Comprehensive Income in respert of the plan are as follows.. 2023 2022 Total Total £'oDo £'ooo Amounts included in staff costs CuffÈnt Servi￿ c05t Past service cost 14311 16891 Totsl 14311 16891 Amounts induded in investment incorne Net interest ch3rge iioi 1441 Return on pension plan assets Experience gains I Ilossesl arising on defined benefr£ obligations Adjustment ￿¢¢gniSed in the actuarial gains to cap the scheme surplus Amount recognIs￿ in total other comprehensive income 16601 2.383 11.1481 575 12821 3.103 2,821 Movement in net deftned benefit liability during year.. Z023 Totsl £'ooo 2022 Total Net defined benefrt liablllty In scheme at IAuRust 2022 Movement in ye3r= Current Service cost Employer contributions Net interest charge AdminiSt￿tion expense Past Servi￿ c05t gain Actuarial Igalnl Adjustment reCOg￿lsed in the actyari31 ￿lAS to C3P the scherne surplus Net defined benefrt liabilityat 31 July2023 446 2845 431 13341 io 689 13281 22 17 11,7231 1.148 12.8211 Reconciliation of liabilities: 2023 Total £'ooo 10,736 431 2022 Total £'ooo Defined benefft obllgatlons at l AuBU5t 2012 Current service cost 13.011 689 209 Interest cost 373 Contributions by Scheme participants Past serviTr cost ExperienTr (gain) on d2fined benefit obligations ESfimated benefits paid Defined benefrt ot>ligations at 31Juty 2028 113 122 12,3831 12831 8.987 13.1031 11921 10,736 47 ROSE BRUFORD COLLEGE OF THEATFiE AND PERFORMANCE Finantlal Ststements.. Yearto31 Juty 2023 14 Defined benefit obligations Icontinuedl Loc31 Government Pension Scheme Icontinuedl Reconciliation of assets.. 2Ct23 Total £'ooo 2022 Total Falr value of plan assets at l August 2022 Interest on plan asset5 Return on plan assets Employer contribution5 Contributlons by Scheme participants Administr8titrn expenses Estimated benefits paid Fail value of plan ¥$5ets at 31July 2023 10,290 363 16601 334 10,166 165 12821 328 113 1221 12831 10,135 122 11921 10,290 15 Students, UnSon The StudÈnt5' Union is an independent unincorporated club or society. The intended main received a grant from the College of £5,00012022.. £5,0001. This is included with the Students, Union total income of £39,05912022= £29,363). Student Union expenditure was £50,69412022.' £15,650). The Student5, Union brought forward balances of £13.731 and carried forward balances Of £2,097, a net reduction of £11,634. Additionally, the College incurred èxpenditure on behalf of the Students, Union of £1,553. In accordance with the Education Act 1994, the Students, Unlon is required to publish donation5 and affiliations to external organisations. ThÈre were no donation5 to external organisation512022.. £Nill. There was fto affiliation paid to the National Union of Students this financial year12022= £Nill. 16 Access and Participation plan Staff Costs É'ogo Other Total costs 2023 £'ooo £'ooo Staff costs £'ooo Other osts £'ooo Total 2022 £000 Access investment 97 39 136 142 35 177 Financial support Supportfor disabled Students Research & evaluation 169 169 124 124 29 36 21 21 42 45 45 66 66 L71 215 229 180 409 Amounts in respect of staff costs are Included within the College's staff costs. The Acce55 and Participation Plan can be found at.. htt www.bruford.ac.u about outreach 17 Related parties The College maintallls a register of Governors, interests and requires Governors who h3ve a financial inlere5t in an item of business before the Board both to declare their interest and refrain Irom taking part in that item. 48 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financi31 Stst2rn2nt5.'YÈarto 31 july 2023 18 Rose Bruford International Rose Bruford Ilnternationall Limited is a subsidiary of the Cctllege. It is company limited by guarantee and not having a share fdpital, registered in England. The subsidiary had a deficit on reserve5 Of £92k12022= £Nill. The subsidiary was dormant until l August 2C122. Thereafter it prowded staffin& catering and student residence services to the College. The subsidiary summary financial statements are: Statément of income and retained earnings: 2023 £OOOs Turnover 909 Cost of Sales 19991 1901 121 19zI Gross Profit Administrative expènses Deficitfor the ear Statement of finanaal position: Total 2023 ÉOth)s Fixed assets Current Assets 228 Credltors within one year 13261 1921 Net Current knets Reserves: General funds 1921 1921 Total reserves 19 CapÈtal Commitments As at 31 July 2023, the College had £Nil outstanding capital commitments 12022.. £189k relating to digital equiprnènt and sèNicesl. 49 ROSE BRUFORD COLLEGE OF THEATFiE AND PERFORMANCE Finax¢lal Ststetnents.. Yearto 31July 2023 20. US Department of Education Financial Responsibility - su pplemental Schedule In 5atlsfaction of its obligations to facilit3te students, access to US federal finan¢ial aid, we are required by the US Department of Edu¢atlon to present the following Supplemental Schedule in The arnounts presented within the schedule5 have been.. prepared under the historical c05t convention. subject to the revaluation of certain assets prepared uslng United Kingdom generally accepted accounting practice, in accordance with Financial Rèporting Standard 102 IFRS 1021 and the Statement of Recommended Practice- Accounting for Furthèr and Higher Education12019 editionl . presented in pounds stÈrl£ng The schedules set out how each amount disclosed has been extracted from the financial statements. As set out above, the 3ccountinE policies used in determining the amounts disclosed are not intended to and do not comply with the requirements of accounting principles generally acceptèd in the United States tsf Amerl To support the Flnan¢ial Statements for the year ended 31 july 2023.. 174 ROSE BRUFORD COLLEGE OF THEATRE AND PERFORMANCE Financial St3tEments..Ye3rto31July 2023 Y* èrthd31 St*twthtelitsr4e51nAtter¥ SJ4 atserswith dorwr*trkMtins 11 YL èasetsttsral t rtau e¥p*d31 em5 U77 51