TRINITY LABAN CONSERVATtIlRE
OF MUSIC & DANCE
Fin
-stat
2020
ci
ri,. I
A RegiSted Charity and
CompanyLimited by Guarantee
CompanyRegiStr8tion No. 51090
CharityNo. 309998
## **CONTENTS**
|**1.**|**Chair of the Board of Governors and Principal’s Introduction**|**2**|
|---|---|---|
|**2.**|**Strategic Report**|**3**|
||**2.1. Financial review**||
||**2.2. Education and research**||
||**2.3. Access and participation**||
||**2.4. Knowledge exchange and public engagement**||
||**2.5. Artistic and performance highlights**||
||**2.6. Achievements by students, alumni and staff**||
||**2.7. People**||
||**2.8. Equality, diversity and inclusion**||
||**2.9. Section 172(1) Statement**||
||**2.10. Energy and carbon reporting**||
||**2.11. Fundraising**||
||**2.12. Future Developments**||
||**2.13. Acknowledgements**||
|**3.**|**Public benefit statement**|**20**|
||**3.1. Charitable status**||
||**3.2. Charitable purpose and activities**||
||**3.3. Beneficiaries**||
|**4.**|**Corporate Governance and Internal Control**|**22**|
||**4.1. Legal and administrative details**||
||**4.2. Constitution**||
||**4.3. Corporate governance**||
||**4.4. Statement of responsibilities of the Board of Governess**||
||**4.4.1. Recruitment and appointment to the Board of Governors**||
||**4.4.2. Governor/Trustee induction and training**||
||**4.4.3. Responsibilities and delegated authority**||
||**4.5. Governance during the year**||
||**4.6. Internal Control**||
||**4.6.1. Risk management**||
||**4.6.2. Key performance indicators**||
||**4.6.3. Data quality**||
||**4.6.4. Financial control**||
||**4.6.5. OfS registration**||
||**4.7. Public sector union facility time report**||
||**4.8. Disclosure of information to auditors**||
|**5.**|**Independent Auditor’s Report**|**29**|
|**6.**|**Statement of Principal Accounting Policies**|**33**|
|**7.**|**Consolidated and Conservatoire Statement of Comprehensive Income and Expenditure**|**39**|
|**8.**|**Consolidated and Conservatoire Statement of Changes in Reserves**|**40**|
|**9.**|**Consolidated and Conservatoire Balance Sheets**|**41**|
|**10.**|**Consolidated Statement of Cash Flows**|**42**|
|**11.**|**Notes to the Financial Statements**|**43**|
1
## **CHAIR OF BOARD OF GOVERNORS AND PRINCIPAL’S INTRODUCTION**
When we introduced our annual report and financial statements last year, we had just welcomed back students and staff to our buildings after five months of closure; but this return was not to last. 2020-21 turned out to be another year overshadowed by the pandemic. As we have navigated further lockdowns and changing regulations, the whole Trinity Laban community has shown remarkable resilience, creativity and flexibility. We can all be proud of how we have worked to keep each other safe and to maintain the highest standards of teaching, learning and performance. Now that restrictions are lifting, we can look back on a period when unprecedented challenge has prompted many artistic innovations and achievements as highlighted throughout this report. We can also reflect on the lessons learned from necessity that we can use to improve the future experience of our students and staff. Remote operation has shown the potential of digital tools to add value to the intensive, personal training that is central to a conservatoire. We have accelerated our planning under the auspices of a new, cross-institutional Digital Strategy and Process Group with the aim to make all our spaces digital spaces. In this way, we shall be able to offer a range of enhancements for our stakeholders: from novel modes of teaching and assessment that help all our students to excel; to an internationally accessible programme of online performance and participatory events; to hybrid working models that support our staff to balance their work and home commitments and perform to their best. This will require investment and, inevitably, the Conservatoire has not escaped the negative financial impacts of Covid seen across so many sectors. We have already instituted a thorough cost review, and the Board maintains an absolute focus on long-term sustainability that is informing the current update of our financial strategy.
At Trinity Laban, we aim to be progressive, socially engaged, ethical and inclusive. It is our responsibility, as an institution and as a collective of individuals, to live up to these values. This May, we published _Black Lives Matter at Trinity Laban_ , our action plan outlining the routes – completed, ongoing and planned – we are taking to address the inequalities faced by Black staff and students in our community. The Plan was compiled by Trinity Laban’s Black Lives Matter Working Group, which is comprised of accountable officers in key areas and Black student and staff advisors. We have formed important new partnerships with _Black Artists in Dance_ and _Black Lives in Music_ to work together to address issues of diversity and inclusion for people of African and Caribbean heritages but also to provide rigorous external challenge. We are encouraged by the commitment, passion and thought at work within Trinity Laban, and the progress we have made over the past twelve months to diminish the racial inequalities faced within our community. There is still significant work to do.
In the midst of success, there was also profound sadness. The sudden death in March of Colin Bourne Collins, our esteemed Head of Dance Programmes, took from us a valued friend and colleague, and a passionate advocate for dance education and performance. His loss continues to be deeply felt at Trinity Laban and beyond, and it is fitting that we close this introduction by recognising again his dedication to supporting our students to grow as practitioners and artists.
**Alan Davey CBE**
**Professor Anthony Bowne**
Chair of Governors
Principal
2
## **Strategic Report**
## _**Financial Review**_
The financial statements, approved by the Board of Governors, comprise the results of Trinity Laban and its subsidiary undertakings, The Blackheath Halls and BCH Enterprises Limited.
The table below, which summarises the financial results of Trinity Laban, shows an improvement in overall financial performance in 2020-21 with a surplus of £5.1m in contrast to the marginal surplus of £0.6m in 2019-20. The improved position largely reflects two positive non-operating movements; firstly, a gain on our investments of £1.9m (previous year loss £0.2m) arising from the improvement in market conditions and our investment management performance and, secondly, actuarial gains of £2.2m (previous year loss £3.4m) in respect of the pensions schemes in which Trinity Laban participates.
The coronavirus pandemic has continued to adversely affect our financial performance during the last year. Whilst our core higher education programmes have proved to be highly resilient, largely as a result of the commitment and innovation of our community of staff and students, the necessary compromises to our operations have had a severe impact on our range of non-core activities, with reduction in income alongside increases in operating costs having a marked but temporary detrimental impact. The Conservatoire experienced losses of commercial income and fee income from short courses, and our subsidiary arts venue, Blackheath Halls, endured a loss of income as much of the programme of performances and events was cancelled.
A proportion of the group’s losses were mitigated by constraint on expenditure and by accessing the government’s coronavirus job retention scheme for eligible staff most severely impacted by the pandemic.
## **Summary of Income and Expenditure**
|**Summary of Income and Expenditure**|||||
|---|---|---|---|---|
||**_2020-21_**|**_2019-20_**|**_Change_**||
||**£000s**|**£000s**|
**£000s**|**%**|
|Income excl endowments/donations|24,086|24,531|
(445)|(2%)|
|Endowments and donations|3,483|4,010|(527)|(13%)|
|Total income|27,569|28,541|
(972)|(3%)|
|Expenditure excl pension adjustments|26,922|26,789|
133|0%|
|Pensionadjustments|(279)|(2,488)|2,209|89%|
|Total expenditure|26,643|24,301|
2,342|10%|
|Surplus before gains and losses|926|4,240|
(3,314)|(78%)|
|Loss on disposal of fixed assets|(9)|(2)|
(7)||
|Gain/(loss)on investments|1,910|(164)|2,074||
|Surplus for the year|2,827|4,074|
(1,247)|(31%)|
|Actuarial gain/(loss) on pension schemes|2,233|(3,446)|
5,679||
|Unrealised surplus on revaluation of tangible assets|
0|0|
0||
|Comprehensiveincome|5,060|628|4,432||
## _**Income**_
Total income for the year decreased marginally by 3.4%, to £27.6m, (2019-20, £28.5m). The movement includes a decline of 2.4% in tuition fee income, predominantly domestic undergraduates and postgraduates, and a fall in other income (mainly commercial) of £0.1m (-2.9%). These income streams were directly impacted by the pandemic. Income from donations and endowments was also lower by 13%, though it should be noted that both this year and last were characterised by substantial one-off gifts; the donation of £2.1m in 2019-20 from the separately constituted Trinity College of Music Trust following its dissolution, and a legacy gift of £1.3m in 202021.
3
## **Strategic Report (continued)**
**----- Start of picture text -----**
Income by source (£k)
16,000
14,442
14,102
14,000
2020-21
12,000
2019-20
10,000
8,000
5,833 5,816
6,000 4,010
3,898 4,014
4,000 3,483
2,000 -
259
245
8
-
Tuition fees Funding body Research grants Other income Investment Donations and
grants and contracts income endowments
**----- End of picture text -----**
Tuition fee income fell by 2.4% as the number of enrolled students was 4.3% lower at 1,259 than the previous year. Attempts to sustain growth in tuition fee income were adversely affected by the pandemic as it was necessary once again to cancel our popular international summer programme due to UK government restrictions. Funding body grants were flat year-on-year in cash terms at £5.8m. We were also in receipt of funding from the Department for Education for places that are awarded under the UK government’s Music and Dance Scheme. Further details of the change in tuition fee income are in the chart below.
**----- Start of picture text -----**
Tuition fee income (£k)
9,000
7,814
8,000 7,523
2020-21
7,000
2019-20
6,000
5,000
4,000
2,698
3,000
2,403 2,353
2,106
2,000 1,438
1,268
1,000 355
377
130 79
-
Full time Full time Part time Overseas fees Research fees Other fees and
undergraduate postgraduate home/EU fees support grants
home/EU fees home/EU fees
**----- End of picture text -----**
4
## **Strategic Report (continued)**
Tuition fee income from overseas students proved the most resilient last year, with tuition fee income rising over 12% to £2.7m, whilst income from home and EU students, both undergraduate and postgraduate declined. The total for other fees and support grants largely reflects short courses, which were particularly adversely affected by the pandemic. The challenges of student recruitment in this period are reflected in a decline in student numbers of 4.3% from 1,315 to 1,259 following a rise of 5% in the previous year. The chart below shows a marginal decline in student numbers at all levels.
**----- Start of picture text -----**
Student FTE by level
1,000 907.5 935.5
900
800
2020/21
700
600 2019/20
500
400
300 236.9 249.7
200
71.0
100 42.3
0
Undergraduate Postgraduate Other
**----- End of picture text -----**
The chart below indicates the off-trend performance in 2020-21, reversing some of the gains made in recent years as we seek to gradually expand the student population. We remain confident in the underlying popularity of the programmes offered by the Conservatoire and anticipate a return to modest growth in 2021-22 and beyond.
||600
750
900
1,050
1,200
1,350
Student Numbers|2016-17
2017-18
2018-19
2019-20
2020-21
1,086
1,150
1,252
1,315
1,259
1,014.8
1,088.0
1,182.3
1,256.2
1,186.8
Student numbers 2016/17 - 2020/21|2016-17
2017-18
2018-19
2019-20
2020-21
1,086
1,150
1,252
1,315
1,259
1,014.8
1,088.0
1,182.3
1,256.2
1,186.8
Student numbers 2016/17 - 2020/21|2016-17
2017-18
2018-19
2019-20
2020-21
1,086
1,150
1,252
1,315
1,259
1,014.8
1,088.0
1,182.3
1,256.2
1,186.8
Student numbers 2016/17 - 2020/21|2016-17
2017-18
2018-19
2019-20
2020-21
1,086
1,150
1,252
1,315
1,259
1,014.8
1,088.0
1,182.3
1,256.2
1,186.8
Student numbers 2016/17 - 2020/21|2016-17
2017-18
2018-19
2019-20
2020-21
1,086
1,150
1,252
1,315
1,259
1,014.8
1,088.0
1,182.3
1,256.2
1,186.8
Student numbers 2016/17 - 2020/21|
|---|---|---|---|---|---|---|
|||2016-17|2017-18|2018-19|2019-20|2020-21|
||Headcount|1,086|1,150|1,252|1,315|1,259|
||FTE|1,014.8|1,088.0|1,182.3|1,256.2|1,186.8|
||||||||
## _**Expenditure**_
In addition to the excellent facilities for training and performance such as dedicated theatres and performance venues, the Conservatoire schedules intensive teaching, training and supervision by highly accomplished staff on its programmes of study. It is unsurprising, therefore, that staff costs continue to constitute most of our expenditure.
In 2020-21 total expenditure increased by 9.6% from £24.3m to £26.6m, compared to a decrease of 20.9% in the previous years. Staff costs account for all of the overall increase, rising from £13.5m to £15.8m. Almost all of the staff cost increase was caused by a change in the movement on the USS pension scheme provision. We hold a provision in our balance sheet that represents our share of the liability in respect of the scheme’s deficit. Each year this liability is re-assessed. In a normal year, the liability would be expected to reduce slightly as the past service deficit is paid off over the duration of the recovery plan. This is what happened in 2020-21 and we included a credit of £279k in staff costs. In the previous year, the movement was far more dramatic since it reflected a complete reset of the provision as a result of the scheme valuation, normally undertaken every 3 years. This resulted in a credit
5
## **Strategic Report (continued)**
of £2.5m that year. Stripping out these adjustments gives a more accurate understanding of the year-on-year movement on staff costs. That would result in staff costs of £16.1m in 2020-21, an increase of just 0.6% year on year and reflecting the absence of a national pay award last year.
**----- Start of picture text -----**
Expenditure (£k)
18,000
15,849
16,000
13,537
14,000
2020-21
12,000 2019-20
10,000 9,072 9,001
8,000
6,000
4,000
1,553 1,558 205
2,000 169
-
Staff costs Other operating Depreciation Interest payable
expenses
**----- End of picture text -----**
Other operating expenditure increased by just 0.8% following a decline of 7.1% in the previous year as the pandemic severely curtailed normal operations. Whilst there continued to be savings in 2020-21, there were rising costs associated with additional cleaning, protective equipment and other essential measures to ensure Trinity Laban facilities remained operationally safe for students and staff. Premises costs increased by 12% as a result of the additional precautions taken.
## _**Capital expenditure**_
Capital expenditure was modest in 2020-21 at £0.6m (previous year £0.8m) as certain refurbishment projects were necessarily delayed. The expenditure was primarily on fixtures and fittings, equipment and musical instruments. A series of important projects will now be undertaken in 2021-22 and a number are now underway. The understanding of donors, including Trinity College London, who are supporting these projects is hugely appreciated.
## _**Investment performance**_
Trinity Laban invests funds received for its permanent endowments and from the transfer of assets from the, previously separately constituted, Laban endowment. The Conservatoire also continues to invest the funds previously held by the Trinity College of Music Trust which were transferred in 2019-20 after the trust was wound up. Funds transferred from the Laban Endowment form part of the Conservatoire’s restricted reserves and the funds from the Trinity College of Music Trust are within our unrestricted reserves. Trinity Laban’s Finance and General Purposes committee monitors the performance of its investment portfolio. The overall objectives are:
- to maintain, at a minimum, over the medium term (defined as five years, unless otherwise stipulated by the Committee), the real value of all permanent endowments as income generating assets,
- to adopt a total returns approach to investment, generating the investment return from income and capital gains (or losses),
- to produce a consistent and sustainable return from the aggregate of all permanent endowments to support the relevant portion of the annual budgeted expenditure on scholarships, bursaries and prizes, and specific projects,
- where practicable, to maximise, through a suitable combination of investment and income generation, the financial benefit obtained from all expendable endowments over the period that they remain current,
- to manage the investment assets, in which the endowments and a portion of restricted reserves are invested, within a balanced portfolio, subject to a medium/high degree of risk, and
- to benchmark the gross and net performance of the investments against recognised indices.
6
## **Strategic Report (continued)**
The committee reviewed the investment policy in July 2021 and decided to adjust the risk appetite from ‘medium’ to ‘medium/high’ with a growth objective on a defined multi-asset mandate and without fixed interest. This reflected the view of the committee that there was limited value to the portfolio in retaining fixed interest holdings either in terms of yield performance or risk management. The committee took account of advice from Investec who act as investment advisors to the Conservatoire.
The endowment fund aims to distribute scholarships, bursaries and prizes of between 3% and 4% of endowment funds per academic year. This can be funded from both income and capital after making due allowance for preservation of capital values for future beneficiaries.
The overall non-current asset investment portfolio increased from £9.4m in 2019-20 to £12.5m in 2020-21. The significant increase reflects the receipt of a substantial legacy of £1.3m and an increase in the market value of our investments in the period of £1.9m. A total positive return, including dividend income, of 21.2% of assets invested was achieved in 2020-21, compared to the negative 0.2% generated in the previous year.
The Conservatoire received new endowments totalling £1.3m during the year and, after taking account of expenditure and the gain on investments, the balance of endowments was £9.2m as at July 2021, compared to £6.8m the previous year.
## _**Liquidity**_
Trinity Laban held a cash balance of £4.3m at the end of the 2020-21 financial year, marginally up from £3.8m in 2019-20 and had net current liabilities at 31 July 2021 of £0.9m. The Conservatoire’s financial strategy has a target to migrate to a position of net current assets however, as things stand, our balance sheet position remains sustainable because of the Conservatoire’s low borrowing (£0.5m at the balance sheet date) and the availability of the funds, transferred from the Laban Endowment and Trinity College of Music Trust, which are held mostly as long-term investments.
In response to the coronavirus pandemic we took additional steps to strengthen the Conservatoire’s liquidity with the securing of a revolving credit facility of £650k for a term of one year from February 2021. This has not to date been drawn down. Our latest forecasts have been assessed against our banking covenants and we maintain compliance throughout the period.
## _**Major financial risks**_
The operating environment for the Conservatoire remains challenging. The executive team have a mature process for identifying, evaluating and managing all risks, including those judged to have the potential for a material adverse financial impact. This process is regularly reviewed by internal audit and with positive outcomes.
The Covid-19 pandemic continues to challenge the pursuit of our strategic goals and further restrictions to our operations cannot be ruled out as we continue to respond to government guidance. Barriers to international travel create difficulty and additional cost for some students hoping to study at Trinity Laban, causing an elevated risk of attrition and/or deferral amongst that group. In response, we have adapted to deliver high quality education both digitally and on campus, and the digital enrichment of our programmes will continue to be developed.
The Conservatoire continues to operate in a competitive environment for student recruitment. Enhanced investment in marketing and recruitment, as well as the regular refreshing of our programmes will improve our appeal to existing and potential students. The impact of the UK’s withdrawal from the European Union is most keenly felt in a reduction in 2021 of the number of new EU students now faced with the prospect of paying full international fees. The Conservatoire is countering this by building on recruitment efforts across Europe, further exploration of potential markets globally and profile-raising activities to convey to the largest possible audience, Trinity Laban’s reputation for world class teaching.
Trinity Laban receives a significant proportion of its income from the Office for Students’ (OfS) in the form of an ‘Institutional Specific Targeted Allocation’. This funding is crucial for the Conservatoire sector as a whole due to the high cost of providing specialist training and the absence of scale economies. Additional support for the heightened cost of Conservatoire teaching is also provided by generous benefactors in providing valuable donations for our capital programme as well as scholarships and prizes. None of this income is guaranteed for the future and a loss of either the OfS funding or the support of donors would be highly damaging.
Improving longevity and projected investment returns at historically low levels continue to exert upward pressure on pension costs. Higher employer pension contributions have been included in the Conservatoire’s financial forecasts to meet the expected increase in costs, although the outcome of the revaluation of the USS scheme in 2020 is not yet certain. As inflation re-emerges in the economy we can anticipate this feeding through in all areas of expenditure, including pay and other operating expenditure. Soaring energy prices caused by supply shortages
7
## **Strategic Report (continued)**
will also feed through the supply chain into rising price inflation. The impact of this will be carefully monitored and appropriate measures taken to reduce costs where possible in response in order to protect the quality of teaching and the student experience.
Finally, government policy toward higher education and in respect of specialist arts provision remains unclear. Policy announcements are expected in autumn 2021 and we can anticipate that aspects of the recommendations made by the review of Higher Education chaired by Philip Augar may surface. Specifically, any uncompensated reduction in the regulated fee for undergraduate study for home students would have a disproportionate impact on our funding. Our core strategy of income growth, including a greater focus on the growth of international tuition fee income coupled with cost containment, offers the best means to mitigate any possible adverse outcomes.
## _**Going concern**_
The board of governors have assessed that the group and parent charitable company have adequate resources to continue in operational existence for a minimum of 12 months from the date of signing the financial statements. For this reason, the financial statements have been prepared on a going concern basis which presumes the realisation of assets and liabilities in the normal course of business. In arriving at this conclusion, the board considered a number of key factors, including the Conservatoire’s business model, strategy, risk appetite and our principal risks and uncertainties.
Updated financial forecasts from 2021-22 to the year ending 31 July 2026, the period also reviewed by the Conservatoire’s regulator, the Office for Students, provided a sound basis for confirming Trinity Laban’s status as a going concern. The assumptions underlying the forecast were considered and accepted. Additionally, the board considered sensitivity analysis which identified the effect of changes to key assumptions. Our sensitivity analysis encompassed assessment of scenarios ranging from events with moderate probabilities, to our worst case, which was assessed to have a remote but plausible likelihood. As a practice-based education and training organisation, we recognise that we may face more risk than HEIs that focus on theory-based subjects. However, our staff have innovated and adapted quickly to offer an excellent technology-enriched learning model which maximises in-person tuition. We believe this goes a long way towards addressing many of the reservations potential students may hold about pursuing conservatoire education at this time. Student recruitment for 2021-22 has been encouraging to date and we are not anticipating the need to operate outside the range of contingencies provided within our financial plans.
Trinity Laban also holds reserves in the form of long-term investments which it will liquidate if circumstances dictate. The Board considered this provided sufficient headroom to confirm the Conservatoire’s going concern status in the face of the potential downside risks which may be encountered.
## _**EDUCATION AND RESEARCH**_
Following the approval in November 2019 of a new 2020-2025 Learning and Teaching Plan, 2020-2021 saw a number of successful initiatives across its four priority areas of activity:
- Digital enhancement
- Student success and progression
- Student engagement and wellbeing
- Developing and maintaining teaching excellence
Enhancements to digital learning and teaching continued to progress rapidly as a result of the pandemic. Blended learning was widely used in 2020/21 to reduce the need to physically interact on campus and this approach was found to be highly effective in many cases. In preparation for the start of the academic year, the Digitally Enhanced Learning (DEL) team conducted digital skills and resources audits among staff and students to gauge the level of technical support and hardware needed to enable full engagement with learning and teaching activities. The DEL team worked with teaching staff to develop their digital literacy, to promote good practice in digital pedagogy and to train teachers on the various digital platforms in use at Trinity Laban. They also provided support for teaching staff in converting in person learning materials for online delivery.
In the Faculty of Dance, teachers and students used Microsoft Teams as a mechanism for swift communication and sharing of ideas and resources. Live streamed performances and performance projects filmed outdoors or in students’ domestic environments also continued to be developed, and the use of YouTube and other video sharing platforms has become an important way of disseminating creative work to a wider audience, particularly for postgraduate students. The successful development of digital portfolio assessments in the Faculty of Music in the summer of 2020 led to widespread use of this mode of assessment for the majority of students in 2021. Students undertaking this type of digital assessment benefitted from AV support and had the opportunity to acquire new skills associated with recording their work.
8
## **Strategic Report (continued)**
The Conservatoire seeks to have a clear understanding of student wellbeing needs and to enhance provision according to evidence-informed approaches across departments. Under this theme in 2020-21, a review of mitigating circumstances was undertaken that included widespread consultation with students and staff and resulted in a new Requests for Additional Consideration procedure. The new process is informed by good practice guidelines from the Office of the Independent Adjudicator and enables self-certification for extensions and absences, with the aim of creating a trusting and supportive environment for students encountering personal difficulties.
Throughout the pandemic, communication with students has been streamlined. Newsletters have been implemented and used to good effect, and online Programme Committee meetings resulted in increased levels of attendance amongst student representatives. Town Hall style meetings were held in both Faculties to provide students with opportunities to engage with senior managers.
The development, recognition and reward of our outstanding teaching and learning support staff remains central to the provision of the highest quality education to our students, and to continuous pedagogical enhancement. _TL: Augment_ , Trinity Laban’s accredited professional development scheme leading to HEA Associate Fellowship, Fellowship and Senior Fellowship, was revised and reaccredited by Advance HE in 2021. The programme has been delivered online since March 2020, and there was strong uptake in 2020/21. External Examiner feedback on the quality of the reflective submissions and vivas was very positive, testifying to the excellent teaching, learning facilitation and academic leadership that exists within the Institution.
The second iteration of the Conservatoire’s annual Teaching and Supporting Learning Awards recognised outstanding individuals and teams who contributed to enhancing the institutional learning and teaching culture and initiatives that positively influenced the student experience. In 2020-21, the awards celebrated in particular:
- Innovation in digital teaching and learning
- Commitment to working in partnership with students and/or embedding the student voice within Trinity Laban’s learning and teaching culture
- Outstanding contribution to Trinity Laban’s culture of inclusion and diversity
• Leading or enabling changes to learning, teaching and assessment practice in response to the pandemic During 2020-21, Trinity Laban made its second submission to the Research Excellence Framework. Elsewhere, the Covid pandemic understandably continued to affect the research productivity of the Conservatoire’s researchactive staff, particularly those- the majority- who specialise in practice-based activity. That said, there were several research highlights from staff members, including
- In choreography, Wayne McGregor (Professor of Choreography) continued to make innovative online dance works, and was a curator at the Venice Biennale. In addition, Charles Linehan (Reader in Choreography) curated the second London International Screen Dance Festival. Zoi Dimitriou completed a commission, again online, for the ‘Arc for Dance Festival 2021’ in Athens.
- In music, Deirdre Gribbin (a newly awarded Professor of Composition) completed a collaboration with the Irish Museum of Modern Art, during the IMMA Lucien Freud exhibition 2021 with the Crash Ensemble. _Dark Matter Hunting_ , her new chamber work was performed by the Doric quartet, and commissioned by West Cork Chamber Music 2020. Sam Hayden (Professor of Composition) had premieres at the Royal Conservatory, Antwerp, and the Columbia Global Centre, Paris. A new CD of his complete piano works has been realised on Divine Recordings.
- In text-based research, Liliana Ajuaro (Programme Leader for the MSc in Dance Science) pursued important Covid-related research into teachers’ experiences of the pivot to online tuition during the pandemic. Emma Redding (Head of Dance Science) and Rebecca Stancliffe (Postdoctoral Fellow in Arts and Health) completed a collaborative project with the University of Exeter, funded by the Wellcome Trust. The latter also edited a special edition of the _International Journal of Performing Arts and Digital Media_ . Head of Research Jonathan Owen Clark was elected to a new ‘Philosophy of Dance’ cartel at the New Lacanian School.
PhD students also had a number of successes. Uchenna Ngwe continued to gain traction for her important and timely doctoral research on Black Musicians in Britain post-1600, and was awarded the prestigious Francis Johnson Fellowship at the Library Company of Philadelphia, with support from the Royal Musical Association. She is also now an established Radio 3 presenter. Franziska Boehm was awarded a lectureship at Technical University in Munich while still completing her PhD studies.
## _**ACCESS AND PARTICIPATION**_
Trinity Laban’s Access and Participation Plan 2020-2025 sets out an ambitious programme of activity throughout the student lifecycle to remove barriers to engagement with the Conservatoire; to close gaps in participation and
9
## **Strategic Report (continued)**
achievement between groups; and to foster a positive learning culture that challenges inequity and meets the needs of all our students. This work spans the full spectrum from pre-HE outreach and progression programmes for children and young people to expand and diversify the pipeline into conservatoire study, to initiatives with our higher education students that address differential attainment and employment outcomes between demographic groups.
Access indicators in the last year showed some encouraging performance. The percentage of UK-domiciled undergraduate entrants from BAME backgrounds reached 15%, an increase of +7 percentage points over the past five years. 82% of entrants came from state schools against an average among our conservatoire peer group of 70%, and 30% of home UG students qualified for an income-related bursary.
_Photo: Centre for Advance Training students rehearsing in a Laban Building studio._
Success in widening participation is grounded in extensive, long-term outreach programmes to raise awareness of opportunities in dance and music and facilitate lifelong participation from early childhood, alongside the establishment of clear progression routes into dance and music in collaboration with school and FE partners, arts organisations, local authorities and relevant sector bodies. In 2020-21, the pandemic constrained the scale and depth of these efforts but the Conservatoire found alternative ways to reach under-represented groups. At Pre-HE level, we maintained our offer of online dance and music activities designed for home environments with a mixed programme of synchronous and asynchronous content enabling engagement in different ways at different times, constructed from participant feedback. Asynchronous content has been especially valued by both HE and pre-HE students living in challenging home environments as content can be accessed when they are best able to engage. Free activities were available on our website for individual young people and schools, including written instructional resources and videos of creative and technical activities for young people. Within our Dance Centre for Advanced Training and Junior Trinity, students from low-income groups were supported with web-cam loans, and additional mobile data. Tutor sessions were added to consult with participants about support needed.
The Conservatoire has sought to embed access and participation planning and delivery as a core learning and teaching concern. The Access and Participation Plan (APP) and its workstreams have been discussed at both Learning and Teaching Board and Equality and Diversity Board as a means of maintaining alignment between the activities of those Boards and the activities outlined within the APP. We moved forward with our research programme investigating, in the first phase, Black, Asian and Minority Ethnic student experiences in order to understand reasons for current attainment gaps. Student involvement is embedded in this work through the integral role of student co-researchers as well as the contribution of students as research participants. The interview stage
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## **Strategic Report (continued)**
allowed for open conversation about factors affecting student success including differential impacts of the pandemic and suggested responses.
Access and inclusion were also important themes for programme and curricular development in 2020-21. During the revalidation of postgraduate programmes in the Faculty of Dance, revalidation panels discussed the need to diversify the range of perspectives embedded within the curriculum beyond introducing texts on diversity to reading lists. This resulted in a revalidation condition whereby programme teams were asked to compile an action plan outlining how equality and inclusion will be addressed in terms of curriculum, staffing and recruitment at the programme level. The use of positive, diverse role models continues to be an area for development. The Faculty of Music BMus programme development team has been focusing on decolonisation of the curriculum, particularly in relation to music history and canonical repertoire and the Amplify Working Group has been working to diversify programming.
We extended our financial aid package for higher education students and applicants to address hardship caused by the pandemic among lower income groups. Additional measures included: increase to hardship funding and awards; full waiving of accommodation fees where students were not in occupation; removal of audition fees for Dance programmes; and provision of equipment for home study where required.
## _**KNOWLEDGE EXCHANGE AND PUBLIC ENGAGEMENT**_
Despite the extraordinary challenges of the past year, Trinity Laban was able to benefit and maintain connection with a high number of industry and community partners and participants, through both in person and online knowledge exchange. Most recent headline indicators demonstrate continuing widespread public engagement in our cultural, educational and social programmes:
- 24,232 people created, performed, watched or took part in our participatory programmes, including 10,565 engaging with our Take Part at Home online resources during global lockdown
- 5,135 were children and young people, of whom 216 participants were disabled
- 512 were older people aged 60+
- 378 arts professionals, teachers and community workers and received training or CPD
- 74 student placement opportunities were provided
Artistic, social and economic resilience through the pandemic and post-Covid recovery have been primary concerns. We are acutely aware of the pressures faced by established creative enterprises and professional artists and by new graduates entering the creative industries at this time including our own alumni, as well as by vulnerable or isolated members of our local community. Initiatives this year included:
## _TL Ignite_
Building on success of the _Go DigiTL_ microgrants programme launched in the first months of the pandemic, this programme was developed in 2021 to support early career musicians and dancers based in our local area of South East London. Through seed-funding and a curated programme of knowledge exchange, _TL Ignite_ aims to empower these newly graduated and early-career creatives to identify and realise development opportunities, find new ways to connect with audiences, build their networks and monetise their work. 24 recipients, who are all in the first five years of their careers, are using the awards for project realisation, digital creation and professional development, enabling engagement with local communities and the creation of new work. The scheme strengthens Trinity Laban’s ties with the local creative community, building a vital network to help boost the post-pandemic recovery of performing arts.
## _Thinking space_
We ran further iterations of our successful _Thinking Space_ artist development programme to contribute to the professionalisation, skills development and adaptability of music and dance practitioners. Beneficiaries were music and dance artists involved in teaching, creating, delivering workshops, collaborating or performing. Sessions took place online over three to four occurrences led by experienced facilitators who applied elements of Action Learning to their approach.
## _Singing for Lung Health_
_Singing for Lung Health_ is a free weekly singing programme established by Trinity Laban Conservatoire of Music and Dance in partnership with Lewisham and Greenwich NHS Trust, that aims to improve the mental and physical wellbeing of individuals living with long-term lung conditions such as COPD, Bronchiectasis or Asthma. The group was created in response to the increasing awareness of singing’s positive benefit for those with chronic lung conditions, helping to manage feelings of breathlessness, provide a sense of community and lift mood. Following suspension of in-person sessions in March 2020, the programme transferred online in 2021 providing regular engagement to participants during the Covid-19 pandemic and opportunity for those who share lived experience to connect via a fun and sociable activity.
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## **Strategic Report (continued)**
Student involvement in knowledge exchange at Trinity Laban is extensive and is especially profiled during CoLab, our annual two-week festival of collaboration and innovation when, with the support of industry mentors, students create projects that engage with a wide range of community and professional groups. In 2021, we used Higher Education Innovation Fund monies to deliver a CoLab project bringing together _Streetwise Opera_ (a performing arts charity that uses singing and creativity to inspire and empower people who are homeless or recovering from homelessness), the renowned _Shobana Jeyasingh Dance Company_ and Trinity Laban students to create a film and soundtrack that will be released online and screened at festivals and conferences to highlight the creative potential of homeless and vulnerable adults. The work exemplified Trinity Laban’s commitment to creating high quality work in community arts in tandem with releasing the economic potential of collaborating with internationally recognised companies such as SJDC. It also provided valuable training for students on how to work with community participants and to co-devise/create work with vulnerable adults.
These projects sat alongside established and ongoing programmes such as Inspired not Tired, our programme of creative dance and music activity for older adults; arts and health work addressing specific conditions, arts and disability, and social imperatives around obesity and the ageing population; professional development offers to artists and arts educators; and our public performance programming at our professional venues, Blackheath Halls and the Laban Theatre. We gratefully acknowledge the continued support of Lewisham Council through their Main Grants Programme, providing direct investment into our Learning and Participation programmes, which also assists with the leverage of additional funds for this vital work. This year funded activity focused on our three priority areas of Children and Young People, Arts and Health, and Older Adults. Projects supported by Lewisham include Animate Artists, Danceability, Dancing Ahead, Inspired not Tired, Blackheath Halls Gospel Choir and Voices in Motion, with activities being delivered both online and in person at Trinity Laban venues and in Lewisham schools.
_Photo: Blackheath Halls Gospel Choir performing._
## _**ARTISTIC AND PERFORMANCE HIGHLIGHTS**_
Artistic and performance activity in 2020/2021 was predominantly restricted to digital delivery and livestreams, with a minority of work able to take place in person with strict social distancing due to ongoing Covid-19 restrictions. Nevertheless, the year was characteristically innovative, bold and uplifting.
Music performance highlights this year included a suite of Black Culture 365 concerts, which were simulcast from St Alfege’s Church and Blackheath Halls to a global digital audience. Among them included a celebration of Nigerian folk music and an homage to Afro-Brazilian traditions. In November, a week-long festival of Chamber
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## **Strategic Report (continued)**
music culminated in the inaugural Carne Trust Chamber Competition at Blackheath Halls, with Levedy and The Undercroft Trio sharing the prize. Later in the year Trinity Laban Brass Ensemble appeared at Deal Festival 2021 and the KCC courtyard was transformed into a Covid-safe outdoor stage for Rosina’s Lovers, a collection of operatic excerpts.
Digital highlights included an online release by our String Ensemble of Dvořák’s energetic Serenade for Strings in E Major Op.22. Our Shapeshifter orchestra recorded Wagner's Siegfried Idyll and Haydn's Symphony no.86 in D Major at Blackheath Halls, conducted by Dougie Boyd. The New Lights Piano Festival returned exclusively to YouTube, as did the Daryl Runswick Competition, which featured adjudication by broadcaster and classic music lover Stephen Fry.
_Photo: Levedy performing at the Carne Trust Chamber Competition 2020._
The Dance year began with alumni associate artist Theo TJ Lowe working with recent graduates on Let Me Move, which explored the emotional and physical impact of distance on movement. Released digitally alongside a short documentary, the piece also played to a small, distanced audience in the gap between lockdowns.
Transitions Dance Company was able to complete a short tour, Three New Works¸ working with choreographers Dog Kennel Hill Project, Didy Veldman and Rahel Vonmoos, which was also released online and performed live at the Laban theatre. The Graduate Showcase and undergraduate Commissioned Works and Repertory Projects were also presented live and online.
Our Musical Theatre students played four full musicals in person and online. These were Snoopy, Little Women, The Addams Family and Half A Sixpence. In addition, our third-year students took part in a showcase, allowing agents to see their talents on screen.
CoLab 2021 became CoLab Digital, with all of the projects moving online to create an eclectic festival of music, dance, animation, writing and more. Culminating in the CoLab House Party, a multi-room Zoom celebration including a cocktail bar, disco dance room and an open mic lounge, CoLab Digital pushed more boundaries and created more connections than ever before.
## _**ACHIEVEMENTS BY STUDENTS, ALUMNI AND STAFF**_
Notwithstanding the ongoing difficulties the performing arts faced during this academic year, past and present members of the Trinity Laban community continued to innovate, create and perform. They shared their creations digitally, released albums and supported their peers and young artists through online tutorials and teaching. While
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## **Strategic Report (continued)**
in person performances were not possible, alumni featured in live streams from leading venues and festivals including the Barbican, the Royal Albert Hall, Wigmore Hall, Ronnie Scott’s, the Jazz Café, Dance Umbrella and the EFG London Jazz Festival.
There were numerous TV and radio features with alumni Moses Boyd and Emma Jean Thackray both appearing on Later...with Jools Holland and jazz trumpet professor Byron Wallen exploring Louis Armstrong’s connection to Britain in a special programme for BBC Radio 4. Sarod virtuoso Soumik Datta presented Sounds of Silence a fivepart audio series for BBC’s Culture in Quarantine, whilst BBC Two featured legendary alum Fela Kuti in documentary Fela Kuti: Father of Afrobeat. Moses Boyd co-hosted BBC Four’s Jazz 625: The British Jazz Explosion, a special edition of the iconic 1960s show which showcased a plethora of Trinity Laban alumni. The first episode of Black Lives in Music featured alum Ayanna Witter Johnson and current student Xhosa Cole.
_Photo: Kokoroko performing at the BBC Proms._
Many alumni celebrated new appointments. Junior Trinity alum and former Junior Fellow in Conducting, Duncan Ward, was appointed Chief Conductor of Philharmonie Zuidnerderland and Leila McMillan was appointed Senior Lecturer in Contemporary Dance at the Hong Kong Academy for Performing Arts. Professor of Choreography, Wayne McGregor CBE was named as the Director of Dance for the internationally acclaimed La Biennale di Venezia.
In Dance, Matthew Sandiford joined the National Dance Company of Wales and Charlotte Pook was appointed as their rehearsal director. The Victoria and Albert Museum commissioned all-female dance collective, Mass Hysteria, to produce an exclusive work for their Friday Late series. Joyce Gymiah-Distefano co-founded Black Artists in Dance and Rosie Kay Dance Company cast Mayowa Ogunnaike as Juliet in their new production of Romeo + Juliet which also featured fellow alum Patrick Webster.
In the West End, Elliot Coombe was cast in Agatha Christie’s The Mousetrap and Zoe Rogers in Lady Chatterley’s Lover, whilst final year Musical Theatre student Jacob Fowler was in the winning band of BBC talent show Little Mix: The Search. Opera saw alumni Nardus Williams and Jonathan Savournin performing in English National Opera’s drive-in production of La Bohème. Nardus also sang at Glyndebourne in the Rake’s Progress and Jonathan co-produced The Pirates of Penzance with Opera Holland Park. Ayanna Witter Johnson co-hosted the first night of the Proms from the Royal Albert Hall alongside Stephen Fry, whilst Kokoroko led by Sheila Maurice Grey and including Cassie Kinoshi made their Proms debut. The BBC also commissioned composer Theo Jamieson to write an original musical U.Me: The Musical for radio and podcast.
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## **Strategic Report (continued)**
Elsewhere graduates progressed onto high profile training and developmental schemes. Concert pianist Iyad Sughayer became a Young Classical Artists Trust Concordia Artist for 2021 and Eleni Edipidi was selected for a Jerwood Circus Residency. Rhiannon Jeffreys was awarded a grant from the Young Innovators Programme, recognising her as a successful entrepreneur and future leader in innovation.
The honours and awards rolled in. Alumnus Paul Philbert, Principal Timpani with the Royal Scottish National Orchestra received an MBE. Emma Gladstone, former Artistic Director of Dance Umbrella and John Summers, former Chief Executive of the Hallé Orchestra, were both awarded OBEs and Jonathan Peel, Director of Strategy and Business Operations at Trinity Laban received an MBE.
_Photo: (L-R) Dele Sosimi, musician and Musical Director for Fela Kuti’s Eypt 80, Trinity Laban’s Founder and Producer of Black Culture 365 Juliet Jackman, and Nubian Jak Founder Dr Jak Beula at the installation of the Fela Kuti plaque._
Our jazz alumni continued to secure major awards with fourth year jazz saxophone student Xhosa Cole named Breakthrough Act of the Year at the Jazz FM awards 2020. Xhosa was also a recipient of the 2020 Peter Whittingham Jazz award. Pianist Deschanel Gordon won the prestigious BBC Young Jazz Musician 2020 with the final also featuring first year student Keilan Sheard. Pianist Joe Armon Jones and drummer Moses Boyd were both nominated for 2020 MOBO awards. In the Parliamentary Jazz Awards 2021 Kokoroko won jazz ensemble of the year and saxophonist Nubya Garcia won instrumentalist of the Year. Nubya was also nominated for the Hyundai Mercury Prize, the fourth time in the last five years a Trinity Laban graduate has been nominated.
Composition tutor Errollyn Wallen CBE received the 2020 ISM Distinguished Musician Award recognising an individual’s outstanding contribution to musical life in the UK, and keyboard professor Peter Tuite was the inaugural recipient of the Glenn Gould Bach Fellowship. Alum and violin tutor Lana Trotsvek was awarded a Prešeren Fund Prize by the Culture Ministry of Slovenia, given to artists for their outstanding artistic achievements. In the Ivor Composer Awards alum Cecilia McDowall received the award for Outstanding Works Collection, recognising her exceptional body of classical works.
In Dance, choreographer Oona Doherty was awarded the Silver Lion at La Biennale di Venezia. Sir Matthew Bourne made history by becoming the individual with the most Olivier Awards after receiving his 9th award for Best Theatre
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## **Strategic Report (continued)**
Choreographer for Mary Poppins. Fellow alum Luca Silvestrini, Artistic Director of Protein Dance, was awarded the Associazione Nazionale Critici di Teatro (ANCT)’s annual prize in recognition of his company’s work in championing diversity and foregrounding unheard voices. At the annual One Dance UK awards, BSc Programme Leader Sonia Rafferty received the Applied Dance Science Award in recognition of her significant positive impact on dancers’ health, wellbeing and performance whilst physiotherapist and alum Katy Chambers won the Dance Healthcare Practitioner Award in recognition of her exceptional clinical practice. The Jane Attenborough Award which honours an exceptional individual who has made an outstanding contribution to dance was awarded to inspirational educator Valerie Preston Dunlop.
## _**PEOPLE**_
## _**EQUALITY, DIVERSITY AND INCLUSION**_
Trinity Laban is committed to creating a culture in which diversity and equality of opportunity are promoted actively and in which discrimination is not tolerated. The Board has approved the following new Equality Objectives for the period April 2021-March 2025, which will focus the Conservatoire’s attention and activity on identified areas of priority at Trinity Laban and in wider society:
- 1) To promote an inclusive culture in which equality & diversity is supported, showcased, celebrated & championed throughout the institution;
- 2) To increase the institution's understanding of the differences in challenges and barriers to BAME and Disabled student attainment and progression and work to eliminate those gaps;
- 3) To increase the number of BAME students and staff;
- 4) To develop the Institution's understanding of issues faced by trans and/or non-binary students and staff and work to address those issues.
As noted in the introduction, preparation and delivery of our action plan addressing the continuing racism and inequality highlighted by the _Black Lives Matter_ movement has been our foremost priority. The plan sets out commitments across the full spectrum of the Conservatoire’s operations covering curriculum and pedagogy, staff recruitment, training, communications, student and staff representation, governance and systems & processes. The Equality and Diversity Board, chaired by the Principal, will monitor the progress of the action plan.
In 2020/21, Black History Month became Black Culture 365, a year-round celebration and programme of online and in-person events celebrating Black, Asian and Ethnically Diverse creativity in our artforms of music, dance and musical theatre. Trinity Laban was also honoured to install a commemorative plaque at the Conservatoire’s Faculty of Music in Greenwich recognising Trinity Laban alum, political activist and pioneer of Afrobeat, Fela Kuti, an inspirational figure whose influence on music and pan-African politics continues to this day. The commemorative plaque is part of the Black Plaque Project, a partnership between Nubian Jak Community Trust and Havas London that aims to redress the balance of commemorative blue plaques in London, of which only 1.6% currently represent Black people. We were equally delighted to introduce the _Fela Anikulapo-Kuti Scholarship_ in his memory, funded by Partisan Records to support talented jazz musicians in their studies at Trinity Laban.
Around a fifth of the Conservatoire’s students have declared a disability. In May 2021, the Equality and Diversity Board convened a Student Accessibility Working Group with a remit to:
- To ensure consistent and appropriate access for students with physical disabilities to all Trinity Laban campuses; classes; SU spaces; and industry placements.
- To develop mechanisms for effective communication and coordination between relevant departments and the Space Strategy Group to assist in access arrangements.
- To facilitate immediate ‘quick win’ change.
- To engage with and receive feedback from staff and students on proposals developed by the group.
## _**SECTION 172(1) STATEMENT**_
The notes which follow, together with those pages incorporated by reference, acts as Trinity Laban’s Section 172(1) statement.
Our Governors have a responsibility to act to promote the success of Trinity Laban with regard to (amongst other matters) the following:
- The likely consequences of any decision in the long term, (noting that details of how this is achieved is included in the section of the Corporate Governance and Internal Control report entitled ‘Responsibilities and delegated authority’.)
- The impact of the company's operations on the community and the environment as set out on Page 20 in our Public benefit statement and page 17, our Carbon Management report.
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## **Strategic Report (continued)**
- The desirability of the company maintaining a reputation for high standards of business conduct. A desirability underpinned by the fact that the Conservatoire is regulated by the OfS, operates in a competitive environment and aims to align its practices to the guidance of the UK Committee of University Chairs code (CUC).
- The need to act fairly as between members of the company.
The Governors recognise that, in addition to Trinity Laban’s members, they have a responsibility to engage with other stakeholders. The Governors consider other main stakeholders to be students, young people taking part in our junior programmes and their parents, alumni, our staff, donors, contractors, members of our local community and our wider audience. Our Governors engage with these stakeholders via the Executive in a variety of ways with examples throughout our strategic report such as those included in the sections on ‘Access and Participation’ and ‘knowledge exchange and public engagement’ (on page 10).
## _**ENERGY AND CARBON REPORTING**_
Trinity Laban has a comprehensive energy policy that guides our plans and activities. The Sustainability Group comprises members with executive responsibility for sustainability, together with staff and student representatives with a keen interest in green issues. The Group is developing a refreshed sustainability strategy and action plan to ensure that Trinity Laban continues to make an effective response to the climate emergency and a critical contribution to the institution’s sustainability.
The Covid pandemic has impeded progress in some areas but we have continued to make good progress on other aspects. We have, for example, made substantial progress in replacing fluorescent lighting with LED lighting across the whole estate. With the assistance of the London Universities’ Purchasing Consortium, our procurement process takes account of responsible sourcing, including the environmental impact, throughout our supply chain.
## **Energy and Carbon Reporting**
||||**CO2 **|||**CO2 **|
|---|---|---|---|---|---|---|
||**Consumption**||**Emissions**|**Consumption**||**Emissions**|
||**MWh**
|**Litres**|**Tonnes**|**MWh**|**Litres**|**Tonnes**|
||**2021**|**2021**|**2021**|**2020**|**2020**|**2020**|
|**Energy Consumed**|||||||
|Trinity Laban|4,173||814|3,933||819|
|Blackheath Halls|486||92|405||79|
|Diesel/Petrol||939|2||1,035|3|
|**Total**|**4,659**|**939**|**908**|**4,338**|**1,035**|**901**|
|CO2emissions are calculated using BEIS conversion factors|||||||
|**Measurement of performance per student and**|||**staff member:**||||
|Number of students|||1,187|||1,256|
|Number of staff|||340|||333|
|**Total**|||**1,527**|||**1,589**|
|**Emissions per staff**|**and student (CO2 Tonnes)**||||||
||||0.60|||0.60|
Our energy consumption and carbon emissions were both slightly higher in 2021 than the previous year. The impact of building closures and reduced occupancy however will have had an impact and our success in maintaining positive progress will only be properly tested when we have a full year of normal operation in 2021-22.
## _**FUNDRAISING**_
Reflecting on a testing twelve months as the UK remained in lockdown for a significant period of time, Trinity Laban is particularly grateful to its supporters. Their generosity and commitment to the performing arts has been tremendously important to us. We remain especially indebted to Trinity College London for its outstanding generosity: specifically, its ongoing support of scholarships, which are so vital for our student body, and for funding key capital priorities within our campus buildings.
Trinity Laban is extremely thankful to all its supporters whose gifts have continued to make a crucial difference. All are deeply appreciated. However, we wish to make particular mention of:
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## **Strategic Report (continued)**
- The Carne Trust, for providing ongoing generous support towards our Ensembles in Residence programme and for its patronage of the new Carne Trust Chamber Music Competition, which launched this academic year.
- Partisan Records and the estate of renowned Trinity Laban alumnus, Fela Kuti, for establishing the Fela Anikulapo-Kuti Scholarship at Trinity Laban.
- The Wolfson Foundation for its magnificent pledge of support to refurbish our Percussion Suite and for ongoing support for both senior and junior music students.
- The Leverhulme Trust for its extensive support for students across music and dance.
- Funds from the Royal Borough of Greenwich in support of activity for Black History Month 2020 which enabled us to celebrate the achievements of cultural icons from the African and Caribbean diaspora as part of Black Culture 365.
- The Foyle Foundation for its generous donation towards the refurbishment of the historic Loggia at King Charles Court.
- The late Jennifer Gradidge, whose overwhelming kindness in remembering Trinity Laban has brought about one of our biggest bequests to date.
- The late Graham Hutton, who was Registrar at Laban over thirty years ago but never forgot about the needs of our students and left Trinity Laban a significant amount in his will.
- The Sir William Boreman’s Foundation for it’s wonderful support of the ground-breaking Jazz Hang at Trinity Laban, in partnership with Tomorrow’s Warriors.
- The British Council for supporting Trinity Laban students from China, India and Mexico, through their GREAT Scholarship programme.
As a result of the pandemic, this past year saw nearly all of our supporter engagement and stewardship programmes move online. We were able to share videos and recordings of scholarship students with donors, provide access to online concerts and performances and send electronic versions of our newsletters. We hope that we have kept our community in touch with our work, our students and the performing arts, and we cannot wait to be able to welcome our friends back to our buildings and events.
Trinity Laban is registered with the Fundraising Regulator and is fully committed to compliance with the Fundraising Code of Practice. Our aim is that every donor, new or existing, should have a positive experience when supporting Trinity Laban. We act with responsiveness and accountability whilst ensuring that everyone we are in contact with us is treated with fairness and respect.
## _**FUTURE DEVELOPMENTS**_
Aspects of our 2018-2028 Strategic Plan have inevitably been delayed by the unprecedented disruptions of a global pandemic, notably overall growth in student numbers. It remains early to assess fully the medium to long-term impacts for Trinity Laban, the arts and higher education. Nevertheless, the Board is confident that the fundamental components of the strategy are highly relevant to a post-Covid world, and provide a strong framework for the Conservatoire to flourish through:
- A clear emphasis on innovation **, creativity and collaboration** within our curricula, programme portfolio, and learning and teaching delivery including the intrinsic use of new technologies
- Provision of a **personalised, supportive and intensive learning experience** that prepares skilled, collaborative and resourceful graduates for contemporary artistic careers
- A **commitment to diversity** that establishes Trinity Laban as a champion for inclusive practice in the arts and arts education
- An understanding of the **social impact** of our art forms and their capacity to provide transformative experiences to all, preparing our graduates to shape the future social and cultural landscape, and promoting thriving, cohesive communities
Building on the lessons of the past two years, an immediate priority is to finalise a new digital strategy that acknowledges ongoing change and new ways of working; capitalises on the existing strong understanding at Trinity Laban of how best to exploit digital opportunities in our art forms; and ensures that we can lead in this field among UK conservatoires. Capital investment in technological infrastructure has been planned and is the subject of a funding bid to the Office for Students. We have already instituted a new hybrid working framework, creating robust and flexible work processes and management approaches to support staff to perform at their best whether working off or on campus.
Our plan to grow student numbers will be underpinned by two planned, major estates developments. Significant progress has been made on the Creekside project which will provide new studios and performance spaces to the Conservatoire within a larger mixed development. Planning consent has been received from the London Borough
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## **Strategic Report (continued)**
of Lewisham and, subject to the Mayor of London’s review, we expect building work to commence in this academic year. We are also working with a developer to construct a student accommodation block adjacent to the Laban Building.
Achievement of our ambitions will be underpinned by rigorous attention to financial and operational effectiveness. Upgrade of our key enterprise systems has been prioritised to provide fast, individualised services to our students, staff and other stakeholders. The successful launch of a new Student Record System at the start of 2021-22 will be followed by replacement of the Conservatoire’s HR and payroll systems with an integrated, contemporary product.
## _**ACKNOWLEDGEMENTS**_
In closing this report, the Board wishes to record its appreciation to Rebecca Allen who made an invaluable contribution during her five-year term as a governor which concluded in May 2021. Thanks are also due to student representative governors, Eleanor Strutt and Lilli Hansen, who completed their service at the end of 2020-21.
_Photo: TL Innovation Award 2021 winners._
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## **PUBLIC BENEFIT STATEMENT**
## _**Charitable status**_
Trinity Laban Conservatoire of Music and Dance is a registered charity and, as such, its charitable obligations are regulated by the Charity Commission. The Governors are Directors of the Company and Trustees of the Registered Charity as provided under the Charities Act 2011. The Board confirms that, in formulating this annual report and audited financial statements for the year ended 31 July 2021, it has complied with the duty in the Charities Act 2011 to have due regard to the general guidance on public benefit.
## _**Charitable purposes and activities**_
Trinity Laban Conservatoire of Music and Dance’s charitable purposes as set out in its Memorandum of Association are:
- to advance the art and science of music, dance and associated art forms generally for the public benefit; and
- to improve the professional and technical education of music, dance and other students.
The Conservatoire delivers its charitable purposes and associated public benefit through the following principal activities:
- the provision of specialist, practice-based higher education which prepares and equips students for successful careers in a range of professions including as performers, composers and choreographers in the fields of music and contemporary dance to their own and the wider public benefit;
- the provision of lifelong learning opportunities in dance and music to students ranging from children and young people to professional practitioners and adult learners;
- the delivery of outreach and community-based projects and activities, which support economic and social well-being and widen access to the arts and higher education;
- the promotion of research and scholarship in its specialist disciplines that advances the art forms of music and dance, both individually and in collaborative contexts, and develops professional practice to the highest levels; and
- the delivery of music and dance performances by its students, staff and associated professional artists and companies in a variety of venues to a wide spectrum of audiences.
The Strategic Report of the Board above includes further information on Trinity Laban’s activities and their impact, highlighting examples from the 2020-2021 reporting year.
## _**Beneficiaries**_
The main beneficiaries of the Conservatoire’s charitable activities are:
- Students – The Conservatoire provides world-leading, specialist higher education to approximately 1,200 undergraduate, postgraduate and doctoral students per year.
- Alumni – As well as benefiting from the employment opportunities and personal development afforded by their higher education study and qualifications, graduates receive continuing support and services from the Conservatoire as they pursue their careers.
- Community participants – Each year, around 15,000 people take part on our participatory projects while our performances attract annual attendances of c.80,000, of which nearly half are free.
- Professional artists and arts educators – Trinity Laban offers an extensive programme of support for the professional and creative development of independent artists and arts companies.
- Partner organisations – Trinity Laban is a sought-after partner among professional companies, public and third sector organisations and government agencies. We are able to act as a broker and enabler for organisations to connect not only to the Conservatoire’s own expertise and services but to many different communities of practice within our wider network.
- Wider society – the Conservatoire’s ground-breaking research and artistic practice contribute to the advancement of the art forms of music and dance, advancing the UK’s cultural sector and promoting social and economic value.
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## **PUBLIC BENEFIT STATEMENT (Continued)**
We respect the voice and agency of those we engage with, and we prioritise the active involvement of students and participants in the planning, delivery and evaluation of our activities. We have established a variety of forums and communication channels for beneficiaries to share their views and work with us to shape programmes to their needs and interests. This includes student representation on all institutional committees up to and including the Board of Governors.
Approved on behalf of the Board on **21 December 2021** and signed on its behalf by:
**Alan Davey CBE**
Chair of Governors
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**CORPORATE GOVERNANCE AND INTERNAL CONTROL**
## **Legal and Administrative Details**
|**Patron**|His Royal Highness The Duke of Kent KG GCMG GCVO ADC|His Royal Highness The Duke of Kent KG GCMG GCVO ADC|
|---|---|---|
|**Board of Governors**|||
|**Independent** **Governors**|Alan Davey CBE (Chair) (appointed|2 July 2020)|
||Dr Geoffrey Copland CBE (Vice-Chair)||
||Rebecca Allen (retired 14 June 2021)||
||John Crompton||
||Michael Elliott (appointed 1 July 2021)||
||Deborah Harris-Ugbomah||
||Sam Jackson||
||Martin Kettle||
||Jocelyn Prudence||
||Professor Nirmala Rao OBE||
||Bill Robinson||
||Narind Singh||
|**Co-opted Governors**|Councillor Ian Hawking||
||Councillor Patrick Codd (appointed 26 November 2020)||
|**Ex Officio Governors**|Professor Anthony Bowne (Principal)||
|**Staff Governors**|Professor Gabriella Dall’Olio||
||Lucy Nicholson||
|**Student Governors**|Eleanor Strutt (retired 31 July 2021)||
||Lilli Hansen (appointed 26 November 2020, retired 31 July 2021)||
|**Secretary & Clerk to the Board**|Dean Surtees||
|**Registered Name and Office**|Trinity Laban Conservatoire of Music and Dance||
||King Charles Court||
||Old Royal Naval College||
||Greenwich, London, SE10 9JF||
||(Limited by guarantee)||
|**Company Registration Number**|00051090||
|**Charity Registration Number**|309998||
|**Company Secretary**|Dean Surtees||
|**Auditors**|**External Auditor**|**Internal Auditor**|
||BDO LLP|KCG|
||2 City Place|7 Bell Yard Street|
||Beehive Ring Road|London, WC2A 2JR|
||Gatwick, West Sussex, RH6 0PA||
|**Bankers **|Allied Irish Bank (GB_)_|NatWest Bank|
||1stFloor Berkeley Square House,|10 Marylebone High Street|
||4-19 Berkeley Square,|London, W1U 4BT|
||Mayfair, London, W1J 6BR||
22
## **Corporate Governance and Internal Control (continued)**
## **Constitution**
Trinity Laban Conservatoire of Music and Dance was incorporated on 1 February 1897. Trinity Laban is a company limited by guarantee, and a registered charity. Trinity Laban owns The Blackheath Halls and BCH Enterprises Ltd, as wholly owned subsidiaries.
Trinity Laban is governed as described in the Memorandum and Articles of Association as approved by Privy Council and Charity Commission.
## **Corporate governance**
In accordance with the Companies Act 2011 and the Institution’s Articles, the Board of Governors is responsible for the oversight of the Institution and ensuring effective systems of internal control and accountability. The Board is required to present audited financial statements for each financial year.
Trinity Laban aligns its practices to the guidance of the UK Committee of University Chairs code (CUC). The Board keeps its governance arrangements under regular review and evaluated its alignment to the 2020 version of the CUC Code in 2021, building on earlier reviews.
The Board is responsible for the institutional system of internal control. There is an on-going process for identifying, evaluating and managing the Institution’s significant risks which is overseen by the Principal’s Management Group reporting regularly via the Audit Committee to the Board. This process accords with the guidance in the CUC Code and the requirements of OfS/ the Office for Students.
The Institution maintains public information on governance arrangements through its website.
The corporate governance procedures, structures and risk management processes described in this section have been in place throughout the years ending 31 July 2020, and 31 July 2021, and up to the date of approval of these financial statements.
## **Statement of responsibilities of the board of governors**
In accordance with the Conservatoire’s Memorandum and Articles of Association, the Board of Governors is responsible for the administration and management of the affairs of the Conservatoire and is required to present audited financial statements for each financial year.
The Board of Governors (the Governors of which are also the directors of the Conservatoire for the purposes of company law) is responsible for preparing the Report of the Governors (including the Strategic Report) and the financial statements in accordance with applicable law and regulations.
Company law requires the Board of Governors to prepare financial statements for each financial year. Under that law, the Board of Governors is required to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland'. In addition, the Board of Governors is required to prepare the financial statements in accordance with the OfS’s Regulatory Advice 9: Accounts Direction, (October 2019) and the terms and conditions of funding for HEIs through its accountable officer. Under company law, the Board of Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Conservatoire and the Group and of the surplus or deficit, gains and losses, changes in reserves and cash flows of the Conservatoire and the Group for that year.
In preparing the financial statements, the Board of Governors is required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Conservatoire and Group will continue in business.
The Board of Governors is responsible for keeping adequate accounting records that are sufficient to show and explain the Conservatoire's transactions and disclose with reasonable accuracy at any time the financial position of the Conservatoire and enable it to ensure that the financial statements comply with the Memorandum and Articles of Association, the Statement of Recommended Practice – Accounting for Further and Higher Education 2019 edition and any subsequent amendments, the OfS terms and conditions of funding and OfS Accounts Direction
23
## **Corporate Governance and Internal Control (continued)**
and the Companies Act 2006. They are also responsible for safeguarding the assets of the Conservatoire and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Board of Governors has taken reasonable steps to ensure the Conservatoire:
- Has a robust and comprehensive system of risk management, control and corporate governance including the prevention and detection of corruption, fraud, bribery and irregularities.
- Has regular, reliable, timely and adequate information to monitor performance and track the use of public funds.
- Plans and manages its activities to remain sustainable and financially viable.
- Informs the OfS of any material change in its circumstances, including any significant developments that could impact on the mutual interests of the Conservatoire and the OfS.
- Uses public funds for proper purposes and seeks to achieve value for money from public funds.
- Complies with the mandatory requirements relating to audit and financial reporting, set out in the annual accounts direction issued by the OfS.
- Sends the OfS:
- the annual accountability return;
- other information the OfS may reasonably request; and
- any data requested on behalf of the OfS or Research England’s behalf by the Higher Education Statistics Agency (HESA).
- Has adequate and effective arrangements for the management and quality assurance of data submitted to HESA, the Student Loans Company, the OfS and other funding or regulatory bodies.
- Has an effective framework – overseen by its academic board to manage the quality of learning and teaching and to maintain academic standards.
- Considers and acts on the assessment of the OfS of the Conservatoire’s risk specifically in relation to funding.
The Board of Governors is responsible for the maintenance and integrity of the corporate and financial information included on the Conservatoire's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The Board of Governors confirm that:
- so far as each Governor is aware, there is no relevant audit information of which the Conservatoire’s auditor is unaware; and
- the Governors have taken all the steps that they ought to have taken as Governors in order to make themselves aware of any relevant audit information and to establish that the Conservatoire’s auditor is aware of that information.
## **Recruitment and appointment to the Board of Governors**
The members of the Board of Governors who served during the year and up to the date of this report are listed on page 22. The Governors are directors for the purpose of company law and trustees for the purpose of charity law.
The Board has a majority of independent members: neither employees nor students of the Conservatoire. The Board also includes student representatives and members elected by staff.
Under the company’s Articles, Independent members are elected to serve on the Board for a period of four years after which they may be re-elected for a further four-year period with any further extension approved only exceptionally. The Board, through the Nominations Committee, seeks to recruit a diverse membership. The Nominations Committee periodically considers the skills mix of the Board as a means of succession planning.
Independent members do not receive fees or other remuneration for serving as Governors, Directors and Trustees but are entitled to recover expenses as outlined in the notes to the Accounts. Provision is made for remuneration for governors for business services to the Institution beyond their duties as members of the Board subject to the Board’s approval.
## **Governor/Trustee induction and training**
All members receive induction, addressing their particular needs and interests, including a series of meetings and briefings with staff, receipt of information packs and regular invitations to internal and external events/seminars and conferences as a means of continuous development.
24
## **Corporate Governance and Internal Control (continued)**
## **Responsibilities and delegated authority**
The Board maintains the following Statement of Primary Responsibilities, in accordance with the Memorandum and Articles. The Board will:
- determine the educational character and mission of Trinity Laban through approval of long-term academic and business plans and key performance indicators;
- delegate authority to the Executive, working with the Directors, for the academic, corporate, financial, estate and personnel management of the Conservatoire, and to establish and keep under regular review the policies, procedures and limits within such management functions;
- ensure the establishment and monitoring of systems of control and accountability, including financial and operational controls and risk assessment, and procedures for handling internal grievances and for managing conflicts of interest in order to ensure the effective and efficient use of resources, the solvency of Trinity Laban and for safeguarding its assets;
- approve annual estimates of income and expenditure and ensure processes are in place to monitor and evaluate the performance and effectiveness of the Conservatoire against the plans and approved key performance indicators, benchmarked against other comparable institutions where possible and appropriate;
- establish processes to monitor and evaluate the performance and effectiveness of the Board itself;
- conduct its business in accordance with best practice in higher education corporate governance and with the principles of public life drawn up by the Committee on Standards in Public Life;
- safeguard the good name and values of the Conservatoire;
- undertake the appointment, grading, suspension, appraisal, assignment, dismissal and determination of the pay and conditions of service of the head of the Conservatoire as chief executive, and other senior post holders as identified by the Board, and to put in place suitable arrangements for monitoring their performance;
- appoint a secretary to the governing body and ensure that, if the person appointed has managerial responsibilities in the Conservatoire, there is an appropriate separation in the lines of accountability;
- set a framework for the pay and conditions of service of all other staff and be responsible for establishing a human resources strategy;
- be the Conservatoire’s legal authority and, as such, to ensure that systems are in place for meeting all the Conservatoire’s legal obligations, including those arising from contracts and other legal commitments made in the Conservatoire’s name;
- make such provision as it thinks fit for the general welfare of students, in consultation with the academic board;
- act as trustee for any property, legacy, endowment, bequest or gift in support of the work and welfare of the Conservatoire; and
- ensure that the Conservatoire’s constitution is followed at all times and that appropriate advice is available to enable this to happen.
The Board retains ultimate control over the Conservatoire’s affairs and meets at least four times a year to monitor the operations of the Conservatoire. Under the terms and conditions of the OfS, the Board holds to itself the responsibilities for the ongoing strategic direction of the Conservatoire, approval of major developments and receipt from the Conservatoire’s executive officers of regular reports on the Conservatoire’s day to day operations.
The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Institution and to ensure that the financial statements are prepared in accordance with the Companies Act 2006, the Statement of Recommended Practice “Accounting for Further and Higher Education” and other relevant accounting standards.
The Board delegates specific authority to committees as determined in the approved Schedule of Delegation. Each committee is chaired by an independent board member. The committees include the Finance and General Purposes, Audit, Nominations and Remuneration committees. There is no separate investment committee but there is an investment review group, which is overseen by the Finance and General Purposes Committee.
The Academic Board is established as required under the Memorandum and Articles of Association. Academic Board is chaired by the Principal and includes staff and student members, with one observer each from the Board of Governors and Trinity College London. The Board is responsible for overseeing the academic health of the Institution.
The Registrar, who acts as Company Secretary and Secretary & Clerk to the Board, provides procedural and regulatory guidance to the Board and access to independent financial and legal advice. A register of Board Members’ interests is maintained.
25
## **Corporate Governance and Internal Control (continued)**
There were no related party transactions involving members of the Board with Trinity Laban during the year ended 31[st] July 2021.
## **Governance during the year**
The Board met three times during the year to 31 July 2021. Attendance at these meetings was as follows.
|**Name**|**Number of meetings attended**|
|---|---|
|Alan Davey CBE|3 (out of 3)|
|Dr Geoffrey Copland CBE|3 (out of 3)|
|Rebecca Allen|2 (out of 2)|
|John Crompton|3 (out of 3)|
|Michael Elliott|1 (out of 1)|
|Deborah Harris-Ugbomah|3 (out of 3)|
|Sam Jackson|1 (out of 3)|
|Martin Kettle|3 (out of 3)|
|Jocelyn Prudence|2 (out of 3)|
|Professor Nirmala Rao OBE|3 (out of 3)|
|Bill Robinson|2 (out of 3)|
|Narind Singh|2 (out of 3)|
|Councillor Ian Hawking|2 (out of 3)|
|Councillor Patrick Codd|1 (out of 3)|
|Professor Anthony Bowne|3 (out of 3)|
|Professor Gabriella Dall’Olio|3 (out of 3)|
|Lucy Nicholson|3 (out of 3)|
|Eleanor Strutt|3 (out of 3)|
|Lilli Hansen|2 (out of 3)|
The Audit Committee met four times during the year to 31 July 2021. Attendance at these meetings was as follows.
|**Name**|**Number of meetings attended**|
|---|---|
|Deborah Harris-Ugbomah|4 (out of 4)|
|Dr Geoffrey Copland CBE|4 (out of 4)|
|Allan MacCarthy|4 (out of 4)|
|Narind Singh|3 (out of 4)|
|Councillor Ian Hawking|0 (out of 4)|
## **Internal control**
The Board of Trinity Laban is responsible for maintaining a sound system of internal control that supports the achievement of policies, aims and objectives, while safeguarding the public and other funds and assets of the Institution. The system of internal control is designed to manage rather than eliminate the risk of failure to achieve policies, aims and objectives. It can only provide reasonable and not absolute assurance of effectiveness.
The system of internal control is based on an ongoing process designed to identify the principal risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently and economically in accordance with sector guidance and best practice.
## **Risk management**
The following processes have been established as regards risk management:
- a risk management policy and framework have been adopted and is subject to annual review;
- risk management workshops are held periodically for senior personnel to identify the Conservatoire’s objectives and risks, and a control strategy is determined for each of the significant risks and opportunities;
- • the Conservatoire’s Executive group is charged with overseeing the management of risk;
- the Principal’s Management Group makes regular reports to the Audit Committee which provides advice to the Board on the effectiveness of the establishment and implementation of risk management; and
26
## **Corporate Governance and Internal Control (continued)**
- internal auditors’ audit planning arrangements, methodology and approach have been tailored in such a way that their audit conforms to the latest professional standards reflecting the adoption of risk management.
The schedule of business provides for risk management and internal control to be considered on a regular basis during the year. Risk management has been incorporated fully into the corporate planning and decision making processes of the Institution.
The Board receives periodic reports from the Audit Committee concerning internal control, and regular reports are received from managers on the steps they are taking to manage risks in their areas of responsibility, including progress reports on key projects.
## **Key performance indicators**
The Board has identified and regularly reviews a set of Key Performance Indicators (KPIs) as recommended by the Committee of University Chairs. The Board KPIs are selected to reflect the most critical factors to the Institution’s success, as well as the primary developmental initiatives within the Strategic Plan. KPIs have been mapped to strategic objectives and organisational enablers, and reporting includes performance comparison with an identified benchmark group of conservatoires, where appropriate.
Monitoring and reporting of Key Performance Indicators aims to:
- support an effective and transparent governance process, and efficient communication between Board and management;
- satisfy accountability requirements of external bodies;
- identify successful approaches and drive improvement; and
- enable timely identification of performance issues and risks to the achievement of high-level strategic and operational objectives.
## **Data quality**
The Conservatoire operates with regard to the guidance of OfS on the management of data. There is an approved Data Strategy and Data Quality Framework, setting the arrangements for the Conservatoire to maintain accurate, valid, timely and reliable data in order to manage activities effectively and meet internal and external reporting and accountability requirements. The Principal’s Management Group is responsible for the implementation of policies and measures to deliver data quality, supported by the Data Governance Group which reports to PMG and the Audit Committee. The Audit Committee oversees the adequacy and effectiveness of the Conservatoire’s arrangements for the management and assurance of data submitted to OfS, the Student Loan Company, the Higher Education Statistics Agency and other bodies. The Board of Governors has overall responsibility for the fulfilment of the legal and regulatory obligations of the Institution for data.
## **Financial control**
The Board has taken reasonable steps to:
- ensure that funds from the Office for Students and Research England are used only for the purposes for which they have been given and in accordance with the OfS’s Accounts Direction and any other conditions which the OfS may from time to time prescribe;
- ensure that there are appropriate financial and management controls in place to safeguard public funds and funds from other sources;
- safeguard the assets of the Institution and to prevent and detect fraud; and
- secure the economical, efficient and effective management of the Institution’s resources and expenditure.
The key elements of the Conservatoire’s system of internal control, which is designed to discharge the responsibilities set out above, include the following:
- clear definitions of the responsibilities of, and the authority delegated to, heads of academic and administrative departments;
- a comprehensive medium and short-term planning process, supplemented by detailed annual income, expenditure, capital and cash flow budgets;
- regular reviews of key performance indicators and business risks and of financial results;
- clearly defined and formalised requirements for approval and control of expenditure, with investment decisions involving capital or revenue expenditure being subject to formal detailed appraisal and review according to approval levels set by the Board;
27
## **Corporate Governance and Internal Control (continued)**
- comprehensive Financial Regulations, detailing financial controls and procedures, approved by the Audit Committee and Finance and General Purposes Committee; and
- a professional Internal Audit service whose annual programme is approved by the Audit Committee.
The Audit Committee, on behalf of the Board, has reviewed the effectiveness of the Conservatoire’s system of internal control. Any system of internal control can, however, only provide reasonable, but not absolute, assurance against material misstatement or loss.
## **OfS Registration**
The Office for Students has assessed that Trinity Laban meets the governance condition for inclusion on the Register of Higher Education Providers (England) from July 2018. This judgement was based on the selfassessment of governance and management submitted by the Conservatoire as part of its application for registration and associated evidence of sound governance structures and practices.
## **Public sector Union facility time report**
7 employees were relevant union officials for the year ended 31st July 2021, all of whom spent between 0.2% and 4.6% of their working hours on facilities time. The total pay bill of these union officials was £276,292 and the cost of their facility time was £5,045, giving a percentage of total pay bill spent on facility time of 0.03%. The Conservatoire’s trade union officials spent 1.8% of their time on trade union activities.
## **Disclosure of information to auditors**
The directors have taken all the steps that they ought to have taken as directors in order to inform themselves of any relevant audit information and to establish that the company's auditors are aware of that information. In accordance with section 485 of the Companies Act 2006, BDO LLP were appointed as auditors during the year and have expressed their willingness to continue in that capacity.
Approved by order of the Board of Governors on **21 December 2021** and signed on its behalf by:
**Alan Davey CBE**
**Professor Anthony Bowne**
Chair of Governors
Principal
28
**Independent Auditor’s Report to the Board of Trinity Laban Conservatoire of Music and Dance**
## **Opinion on the financial statements**
In our opinion, the financial statements:
- give a true and fair view of the state of the Group’s and of the Conservatoire’s affairs as at 31 July 2021 and of the Group’s and the Conservatoire’s income and expenditure, gains and losses, changes in reserves and of the Group’s and Conservatoire’s cash flows for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Trinity Laban Conservatoire of Music and Dance (“the Conservatoire”) and its subsidiaries (the ‘Group’) for the year ended 31 July 2021 which comprise the Consolidated and Conservatoire Statement of Comprehensive Income and Expenditure, the Consolidated and Conservatoire Statement of Changes in Reserves, the Consolidated and Conservatoire Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) “ISAs (UK)” and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## _Independence_
We are independent of the Group and Conservatoire in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the board members’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and Conservatoire’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the board members with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the Report of the Governors, other than the financial statements and our auditor’s report thereon. The Board or Governors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information including the Strategic Report, Statement of Corporate Governance and Internal Controls and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
29
## **Independent Auditor’s Report (continued)**
## **Other Companies Act 2006 reporting**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the Report of the Governors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the Report of the Governors have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Conservatoire and its environment obtained in the course of the audit, we have not identified material misstatements in the [strategic report or the] report of the board.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of board members’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the Board of Governors was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the report of the board and from the requirement to prepare a strategic report.
## **Opinion on other matters required by the Office for Students (“OfS”) and Research England**
In our opinion, in all material respects:
- Funds from whatever source administered by the Conservatoire for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislation.
- Funds provided by the OfS, UK Research and Innovation (including Research England) the Education and Skills Funding Agency and the Department for Education have been applied in accordance with the relevant terms and conditions.
- The requirements of the OfS’s Accounts Direction (OfS 2019.41) have been met.
We have nothing to report in respect of the following matters in relation to which the OfS requires us to report to you if, in our opinion:
- The Conservatoire’s grant and fee income, as disclosed in the note to the accounts, has been materially misstated.
- The Conservatoire’s expenditure on access and participation activities for the financial year has been materially misstated.
## **Responsibilities of the Board of Governors**
As explained more fully in the Statement of Responsibilities of the Board of Governors set out on page 23, the Board of Governors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Board of Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Governors is responsible for assessing the Group and the Conservatoire’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Governors either intend to liquidate the Group or the Conservatoire or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
30
## **Independent Auditor’s Report (continued)**
## _Extent to which the audit was capable of detecting irregularities, including fraud_
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the Group and the sector in which it operates, we identified that the principal risks of non-compliance with laws and regulations are related to their registration with the Office for Students ("OfS”) and their ongoing conditions of registration, and we considered the extent to which non-compliance might have a material effect on the Group Financial Statements or their continued operation. We also considered those laws and regulations that have a direct impact on the financial statements such as compliance with the OfS Accounts Direction and tax legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Board and other management and inspection of regulatory and legal correspondence if any.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates.
The audit procedures to address the risks identified included:
- Performing analytical procedures to identify unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. Areas of identified risk are then tested substantively;
- Challenging assumptions made by management in their significant accounting estimates in particular in relation to impairment, depreciation, defined benefit pension scheme obligations and recoverability of trade receivables;
- Discussions with management, including consideration of known or suspected instances of noncompliance with laws and regulations and fraud, including direct representation from the Accountable Officer;
- Identifying and testing journal entries, in particular any journal entries posted from staff members with privilege access rights, journals posted by key management and journals posted after the year end;
- Reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence with HMRC, OfS and relevant regulators to identify any actual or potential frauds or any potential weaknesses in internal control which could result in fraud susceptibility;
- Reviewing items included in the risk and fraud registers as well as the results of internal audit’s investigation into these matters.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
In addition, we also report to you whether income from funding bodies, grants and income for specific purposes and from other restricted funds administered by the Conservatoire have been properly applied only for the purposes for which they were received and whether income has been applied in accordance with the Statutes and, where appropriate, with the Terms and Conditions of Funding with the OfS and Research England.
31
## **Independent Auditor’s Report (continued)**
## **Use of our report**
This report is made solely to the members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Conservatoire’s Board those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Conservatoire and the Board of Governors as a body, for our audit work, for this report, or for the opinions we have formed.
James Aston MBE (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor Gatwick United Kingdom
Date: 21 December 2021
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
32
## **Statement of Principal Accounting Policies**
## **Basis of preparation**
The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education 2014 and in accordance with Financial Reporting Standards (FRS 102). The Conservatoire is a public benefit entity and therefore has applied the relevant public benefit requirement of FRS 102. The financial statements are prepared in accordance with the historical cost convention (modified by the revaluation of fixed assets). Under the Accounts Direction with the OfS and the terms and conditions of funding with the Office of Students and Research England, the Board holds to itself the responsibilities for the ongoing strategic direction of the Conservatoire, approval of major developments and receipt from the Conservatoire's executive officers of regular reports on the Conservatoire's day to day operations.
The financial statements are presented in Sterling (£).
## **Significant estimates and judgements**
The following significant estimates and judgements have been made in preparing the financial statements:
Discount rate for the Universities Superannuation Scheme (USS) and Trinity College of Music Pension and Assurance (TCMPA) Scheme and London Pensions Fund Authority (LPFA) defined benefit pension schemes. The USS discount rate was calculated using the Mercer Yield Curve UK - Extended Dataset model and the discount rates for the TCMPA and LPFA schemes were calculated by actuaries on behalf of the Conservatoire. Therefore, management made a judgement in applying these rates.
## **Company information**
Trinity Laban Conservatoire of Music and Dance is a company limited by guarantee and a registered charity. Its country of incorporation is England and Wales. Please refer to the Corporate Governance and Internal Control statement for the address of its registered office.
## **Going Concern**
The Governors have assessed that the group and parent charitable company has adequate resources to continue in operational existence for a minimum of 12 months from the date of signing the financial statements. For this reason, the financial statements have been prepared on a going concern basis which presumes the realisation of assets and liabilities in the normal course of business. In arriving at this conclusion, the Board considered a number of key factors, including the Conservatoire’s business model, strategy, risk appetite and our principal risks and uncertainties.
Updated financial forecasts from 2020-21 to the year ending 31 July 2025, the period also reviewed by the Conservatoire’s regulator, the Office for Students, provided a sound basis for confirming Trinity Laban’s status as a going concern. The assumptions underlying the forecast were considered and accepted. Additionally, the board considered sensitivity analysis which identified the effect of changes to key assumptions. Due to the high level of uncertainty brought about by the COVID-19 pandemic, the sensitivity analysis included as its worst case a reverse stress test. Our sensitivity analysis encompassed assessment of scenarios ranging from events with moderate probabilities, to our worst case, which was assessed to have a remote likelihood but plausible outcome. As a practice-based education and training organisation, we recognise that we may face more risk than HEIs that focus on theory based subjects. However, our staff have innovated and adapted quickly to offer an excellent blended learning model which maximises in person tuition within the constraints imposed by social distancing guidelines. We believe the revised approach to delivering the curriculum goes a long way towards addressing many of the reservations potential students may hold about pursuing conservatoire education during the pandemic and, with careful communication, will reduce the risk to tuition fee income as we move beyond 2020-21.
Trinity Laban also holds reserves in the form of long term investments which it will liquidate if circumstances dictate. The Board considered this provided sufficient headroom to confirm the Conservatoire’s going concern status in the face of the potential downside risks which may be encountered.
33
## **Statement of Principal Accounting Policies (Continued)**
## **Basis of consolidation**
The consolidated financial statements include the Conservatoire and all its subsidiaries for the financial year to 31 July 2021. Further details of the subsidiary undertakings are disclosed in the Notes to the Accounts.
## **Subsidiary undertakings**
The Conservatoire has a 100% holding in both The Blackheath Halls and BCH Enterprises Limited, companies limited by guarantee.
The Blackheath Halls is a non-profit organisation raising funds to advance education particularly by the encouragement of the arts and BCH Enterprises Limited is a company providing hall hire and associated catering services.
## **Income recognition**
Income from the provision of goods or services is credited to the Consolidated and Conservatoire Statement of Comprehensive Income and Expenditure when the goods or services are supplied to the student or external customers or the terms of the contract have been satisfied.
Fee income is stated gross of any expenditure and credited to the Consolidated and Conservatoire Statement of Income and Expenditure over the period in which students are studying. Bursaries and scholarships are accounted for gross as expenditure and not deducted from income.
Investment income is credited to the statement of income and expenditure on a receivable basis.
Funds the Conservatoire receives and disburses as paying agent on behalf of a funding body are excluded from the Consolidated and Conservatoire Statement of Income and Expenditure where the Conservatoire is exposed to minimal risk or enjoys minimal economic benefit related to the transaction.
## **Grant funding**
Government revenue grants, including funding council block grant and research grants, are recognised as income over the periods in which the Conservatoire recognises the related costs for which the grant is intended to compensate. Where part of a government grant is deferred it is recognised as deferred income within creditors and allocated between creditors due within one year and due after more than one year as appropriate.
Grants (including research grants) from non-government sources are recognised as income when the Conservatoire is entitled to the income and performance related conditions have been met. Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the balance sheet and released to income as the conditions are met.
## **Donations and endowments**
Non cash exchange transactions without performance related conditions are donations and endowments. Donations and endowments with donor imposed restrictions are recognised as income when the Conservatoire is entitled to the funds. Income is retained within the restricted reserves until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserves transfer.
Investment income and appreciation of endowments is recorded as income within the year in which it arises and as either restricted or unrestricted income according to the terms applied to the individual endowment fund.
There are four main types of donations and endowments identified within reserves:
1. Restricted donations – the donor has specified that the donation must be used for a particular objective. 2. Unrestricted permanent endowments – the donor has specified that the fund is to be permanently invested to generate an income stream for the general benefit of the Conservatoire.
3. Restricted expendable endowments – the donor has specified a particular objective other than the purchase or construction of tangible fixed assets, and the Conservatoire has the power to use the capital.
4. Restricted permanent endowments – the donor has specified that the fund is to be permanently invested to generate an income stream to be applied to a particular objective.
34
## **Statement of Principal Accounting Policies (Continued)**
## **Capital grants**
Government capital grants are recognised as income over the expected useful life of the asset. Other capital grants are recognised as income when the Conservatoire is entitled to the funds subject to any performance related conditions being met.
## **Accounting for retirement benefits**
The Institution participates in four defined benefit schemes: the Teachers’ Pension Scheme (TPS), the Universities Superannuation Scheme (USS), the London Pension Fund Authority (LPFA) – which was closed to new membership from 1 August 2005 – and its own scheme for non-academic staff, which is the Trinity College of Music Pension and Assurance Scheme (TCMPA), which became a closed scheme with effect from 31 December 2001. These schemes are externally funded and contracted out of the state earnings related pension scheme and cover most employees. A small number of employees are members of individual defined contribution pension schemes. The assets of the schemes are invested and managed independently of the finances of the Institution. The contributions are determined by qualified actuaries on the basis of quinquennial (TPS) and triennial valuations (USS, LPFA and TCMPA) using, respectively, the prospective benefits method and the projected unit method.
The USS and TPS are multi-employer schemes for which it is not possible to identify the assets and liabilities relating to Conservatoire members due to the mutual nature of the scheme and therefore these schemes are accounted for as a defined contribution retirement benefit schemes. A liability is recorded within provisions for any contractual commitment to fund past deficits within the USS scheme.
## **Defined Contribution Plan**
A defined contribution plan is a post-employment benefit plan under which the Conservatoire pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the Consolidated Statement of Income and Expenditure over a member of staff’s contract of employment.
## **Defined Benefit Plan**
Defined benefit plans are post-employment benefit plans other than defined contribution plans. Under defined benefit plans, the Conservatoire’s obligation is to provide the agreed benefits to current and former employees, and actuarial risks (that benefits will cost more or less than expected) and investment risks (that returns on assets set aside to fund the benefits will differ from expectations) are borne, in substance, by the Conservatoire. The Group should recognise a liability for its obligations under defined benefit plans net of plan assets. This net defined benefit liability is measured as the estimated amount of benefit that employees have earned in return for their service in the current and prior periods, discounted to determine its present value, less the fair value (at bid price) of plan assets. The calculation is performed by a qualified actuary using the projected unit credit method. Where the calculation results in a net asset, recognition of the asset is limited to the extent to which the Conservatoire is able to recover the surplus either through reduced contributions in the future or through refunds from the plan.
A feature of defined benefit pension plans is that the employer has offered a guarantee as to the amount or level of pension or benefit ultimately payable and is therefore liable to make additional contributions to provide that guaranteed level of benefit. Under defined benefit plans, a charity’s (and/or its subsidiary’s) obligation is to provide the agreed benefits to current and former employees. Actuarial risk and investment risk are effectively borne by the employer.
## **Employment benefits**
Short term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to the Conservatoire. Any unused benefits are accrued and measured as the additional amount the Conservatoire expects to pay as a result of the unused entitlement.
## **Finance leases**
Leases in which the Conservatoire assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. Leased assets acquired by way of finance lease and the corresponding lease liabilities are initially recognised at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease.
35
## **Statement of Principal Accounting Policies (Continued)**
Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.
## **Operating leases**
Costs in respect of operating leases are charged on a straight-line basis over the lease term. Any lease premiums or incentives are spread over the minimum lease term.
## **Fixed assets**
Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. The straight line method is used to depreciate fixed assets. Land, that had been revalued to fair value on or prior to the date of transition to the 2014 FE&HE SORP, is measured on the basis of deemed cost, being the revalued amount at the date of that revaluation. Where parts of a fixed asset have different useful lives, they are accounted for as separate items of fixed assets.
## **Land and buildings**
Land and buildings are stated at cost less accumulated depreciation. Depreciation is provided at rates estimated to write off the costs by equal annual instalments over their anticipated useful economic lives, as follows:
|Freehold buildings|50 years|
|---|---|
|Freehold land|Not depreciated|
|Alterations and building improvements (up to 10 years)|10 years|
|Alterations and building improvements (up to 20 years)|20 years|
|Leasehold land and buildings|Amortised over the remaining term of the lease by|
||equal instalments|
|Long term leasehold improvements|Amortised over the lesser of the remaining term of|
||the lease or 50 years|
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 capital grants account and are released to the income and expenditure account over the expected useful economic life of the related asset on a basis consistent with the depreciation policy.
Buildings under construction are accounted for at cost, based on the value of architects’ certificates and other direct costs incurred to 31 July in any year. They are not depreciated until they are brought into use.
## **Equipment and other fixed assets**
Equipment and other fixed assets costing less than £2,000 are written off to the income and expenditure account in the year of acquisition. All other equipment is capitalised at cost. Capitalised equipment is depreciated over its useful economic life as follows:
Equipment and other fixed assets
5 years
## **Computer software**
Items of computer software costing less than £2,000 are written off to the income and expenditure account in the year of acquisition. All other computer software is capitalised at cost. Capitalised computer software is depreciated over its useful economic life as follows:
Computer software
5 years
## **Musical equipment**
Musical instruments costing less than £2,000 are written off to the income and expenditure account in the year of acquisition. All other musical instruments are capitalised at cost.
Donated musical instruments with a value of £2,000 and above have been incorporated at valuation following an assessment by Webb Valuations, an external professional valuation expert, in conjunction with Malcolm Tyson, an expert valuer of stringed instruments, in April 2014. There has been no diminution in the value of these instruments since the valuation.
36
## **Statement of Principal Accounting Policies (Continued)**
Capitalised musical instruments are depreciated over their useful economic life as follows:
Antique stringed instruments Not depreciated Other stringed instruments 20 years Pianos 10–20 years Other musical instruments 5–15 years
Depreciation is not provided on antique stringed instruments since the estimated remaining useful economic life of the tangible fixed assets exceeds 50 years and any depreciation charge would be deemed immaterial. The carrying value of these assets is subject to an annual impairment review.
Depreciation methods, useful lives and residual values are reviewed at the date of preparation of each Balance Sheet.
## **Borrowing costs**
Borrowing costs which are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised.
## **Investments**
Non-current asset investments are held on the Balance Sheet at market value at year end. Current asset investments are held at fair value with movements recognised in the Consolidated and Conservatoire Statement of Comprehensive Income and Expenditure.
## **Stock**
Stock is held at the lower of cost and net realisable value, and is measured using an average cost formula.
## **Cash and cash equivalents**
Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if they are in practice available within 3 months without 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.
## **Provisions, contingent liabilities and contingent assets**
Provisions are recognised in the financial statements when:
- (a) the Conservatoire has a present obligation (legal or constructive) as a result of a past event;
- (b) it is probable that an outflow of economic benefits will be required to settle the obligation; and
- (c) a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.
A contingent liability arises from a past event that gives the Conservatoire a possible obligation whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the Conservatoire. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably.
A contingent asset arises where an event has taken place that gives the Conservatoire a possible asset whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the Conservatoire. Contingent assets and liabilities are not recognised in the Balance Sheet but are disclosed in the notes.
## **Taxation**
The Conservatoire is a registered charity within the meaning of Schedule 2 of the Charities Act 2011 and as such is a charity within the meaning of the corporation tax act 2010 (Part 11, Chapter 3 section 478). Accordingly, the Conservatoire is potentially exempt from taxation in respect of income or capital gains received within section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied to exclusively charitable purposes. No provision for corporation tax or income tax (deferred or otherwise) is therefore considered necessary. The Conservatoire receives no similar exemption in respect of Value Added Tax (“VAT”). As a result, the major part of VAT paid by the Conservatoire is irrecoverable, since the provision of education is an ‘exempt’
37
## **Statement of Principal Accounting Policies (Continued)**
activity for VAT purposes. The subsidiaries of the Conservatoire are potentially liable to both corporation tax and VAT.
## **Reserves**
Reserves are classified as restricted or unrestricted. Restricted endowment reserves include balances which, through endowment to the Conservatoire, are held as a permanently restricted fund which the Conservatoire must hold in perpetuity. Other restricted reserves include balances where the donor has designated a specific purpose and therefore the Conservatoire is restricted in the use of these funds.
## **Financial Instruments Policy**
Financial Instruments are initially measured at transaction price and subsequently held at cost, less impairment. Financial liabilities are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instruments legal form. Financial Liabilities are initially measured at transaction price (including transaction costs) and subsequently held at amortised cost.
38
## **CONSOLIDATED AND CONSERVATOIRE STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE**
**For the year ended 31 July 2021**
**----- Start of picture text -----**
Group Trinity Laban Group Trinity Laban
Notes 2021 2021 2020 2020
Income £000 £000 £000 £000
Tuition fees and education
contracts 1 14,102 14,102 14,442 14,442
Funding body grants 2 5,833 5,833 5,816 5,816
Research grants and contracts 3 8 8 - -
Other income 4 3,898 3,461 4,014 3,571
Investment income 5 245 258 259 272
Donations and endowments 6 3,483 3,406 4,010 3,946
Total Income 27,569 27,068 28,541 28,047
Expenditure
Staff costs 7 15,849 15,459 13,537 13,107
Other operating expenses 9 9,072 9,279 9,001 9,088
Depreciation 11 1,553 1,372 1,558 1,375
Interest and other finance costs 8 169 165 205 199
Total Expenditure 26,643 26,275 24,301 23,769
Surplus before other gains and losses 926 793 4,240 4,278
Loss on disposal of fixed assets (9) (9) (2) (2)
Gain/(Loss) on investments 1,910 1,910 (164) (164)
Surplus before tax 2,827 2,694 4,074 4,112
Taxation - - - -
Surplus for the year 2,827 2,694 4,074 4,112
Unrealised surplus on revaluation of tangible
assets - - - -
Actuarial gain/(loss) in respect of pension
schemes 2,233 2,233 (3,446) (3,446)
Release of Restricted Funds - -
Total comprehensive income for the year 5,060 4,927 628 666
Represented by:
Endowment Comprehensive
Income/(Expenditure) for the Year 2,417 2,417 (233) (233)
Restricted Comprehensive Income for the Year 656 650 111 111
Unrestricted Comprehensive Income for the Year 1,995 1,860 758 788
Revaluation Reserve Comprehensive
Expenditure for the Year (8) - (8) -
20, 21 5,060 4,927 628 666
**----- End of picture text -----**
## **All items of income and expenditure relate to continuing activities.**
The notes on pages 43 to 63 form part of the financial statements.
39
## **CONSOLIDATED AND CONSERVATOIRE STATEMENT OF CHANGES IN RESERVES For the year ended 31 July 2021**
|**Group**
**Balance at 1 August 2019**
**Balance at 1 August 2020**
Opening balance adjustments
**Balance at 31 July 2021**
**Trinity Laban**
**Balance at 1 August 2019**
**Balance at 1 August 2020**
Opening balance adjustments
**Balance at 31 July 2021**
Surplus from the income and
expenditure statement
Transfers between reserves
Release of restricted funds spent
in year
**Total comprehensive income/**
**(expenditure) for the year**
Surplus/(deficit) from the Income
and Expenditure Statement
Release of Restricted Funds
Spent in Year
**Total Comprehensive Income/**
**(expenditure) for the Year**
Other Comprehensive
Expenditure
Other Comprehensive Income
**Total Comprehensive Income for**
**the Year**
Surplus from the income and
expenditure statement
Release of restricted funds spent
in year
**Total comprehensive Income/**
**(Expenditure) for the Year**
Surplus/(deficit) from the Income
and Expenditure Statement
Release of Restricted Funds
Spent in Year
Transfer Between Reserves
Other Comprehensive Income
Other Comprehensive
Expenditure|**Income and Expenditure Account**
**Endowment**
**Restricted Unrestricted**
**Revaluation**
**reserve**
**Total**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**7,015**
**3,223**
**8,160**
**6,709**
**25,107**
56
169
3,849
-
4,074
-
-
(3,446)
-
(3,446)
-
102
(94)
(8)
-
(289)
(160)
449
-
-|
|---|---|
||(233)
111
758
(8)
628
**6,782**
**3,334**
**8,918**
**6,701**
**25,735**
2,704
2,597
(2,474)
-
2,827
-
-
2,233
-
2,233
(287)
(1,941)
2,236
(8)
-|
||2,417
656
1,995
(8)
5,060
8
86
(94)
-
-|
||**9,207**
**4,076**
**10,819**
**6,693**
**30,795**
**Endowment**
**Restricted Unrestricted**
**Revaluation**
**reserve**
**Total**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**7,015**
**3,223**
**6,131**
**5,348**
**21,717**
56
169
3,887
-
4,112
-
-
(3,446)
-
(3,446)
-
102
(102)
-
-
(289)
(160)
449
-
-|
||(233)
111
788
-
666
**6,782**
**3,334**
**6,919**
**5,348**
**22,383**
2,704
2,509
(2,519)
-
2,694
-
-
2,233
-
2,233
(287)
(1,859)
2,146
-
-|
||2,417
650
1,860
-
4,927
8
92
(100)
-
-
|
||**9,207**
**4,076**
**8,679**
**5,348**
**27,310**|
The notes on pages 43 to 63 form part of the financial statements.
40
**CONSOLIDATED AND CONSERVATOIRE BALANCE SHEETS For the year ended 31 July 2021**
**----- Start of picture text -----**
Group Trinity Laban Group Trinity Laban
Company Registration no: 00051090 2021 2021 2020 2020
Notes £000 £000 £000 £000
Non current assets
Fixed assets 11 38,976 33,576 39,939 34,394
Investments 12 12,525 12,525 9,424 9,424
51,501 46,101 49,363 43,818
Current assets
Stock 13 6 2 5 1
Trade and other receivables 14 367 976 607 1,133
Cash and cash equivalents 22 4,270 3,866 3,819 3,754
4,643 4,844 4,431 4,888
Less: Creditors: amounts falling
due within one year 16 (5,506) (5,320) (5,130) (4,935)
Net current liabilities (863) (476) (699) (47)
Long term intercompany debtor 15 - 1,092 - 1,117
Total Assets less current liabilities 50,638 46,717 48,664 44,888
Creditors: amounts falling due
after more than one year 17 (14,343) (13,907) (14,860) (14,436)
Provisions
Pension provisions 19 (5,500) (5,500) (8,069) (8,069)
Total net assets 30,795 27,310 25,735 22,383
Restricted reserves
Endowments
Income and expenditure reserve -
endowment reserve 20 9,207 9,207 6,782 6,782
Income and expenditure reserve -
restricted reserve 21 4,076 4,076 3,334 3,334
Unrestricted Reserves
Income and expenditure reserve - unrestricted 10,819 8,679 8,918 6,919
Revaluation reserve 6,693 5,348 6,701 5,348
Total Reserves 30,795 27,310 25,735 22,383
**----- End of picture text -----**
The financial statements were approved by the Board on 21 December 2021 and signed and authorised for issue on its behalf by:
**Alan Davey CBE** Chair of Governors
**Professor Anthony Bowne** Principal
The notes on pages 43 to 63 form part of the financial statements.
41
## **CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 July 2021**
|Notes
**Cash flow from operating activities**
Surplus for the year
**Adjustment for non-cash items**
Depreciation
11
(Gain)/Loss on investments
12
(Increase)/Decrease in year end stock
Decrease/(Increase) in debtors
14
Increase in creditors
16
Decrease in pension provision
19
**Adjustment for investing or financing activities**
Investment income
5
Interest payable
8
Endowment income
20
Loss on the sale of fixed assets
Impairment of fixed assets
Capital Grant Income
2,4
**Net cash from operating activities**
**Cash flows used in investing activities**
Capital grants receipts
Disposal of non-current asset investments
12
Investment income
5
Payments made to acquire fixed assets
11
New Non-Current Asset Investments
12
**Cash flows from/(used in) financing activities**
Interest and other finance costs paid
8
Endowment cash received
20
Repayments of amounts borrowed
17
**Increase in cash and cash equivalents in the year**
Cash and Cash Equivalents at Beginning of the Year
22
Cash and Cash Equivalents at End of the Year
22|**2021**
**2020**
**£000**
**£000**
2,827
4,074
1,553
1,558
(1,910)
164
(1)
2
240
(153)
408
85
(336)
(2,520)
(245)
(259)
169
205
(1,394)
(2)
9
2
-
-
(628)
(616)|
|---|---|
||**692**
**2,540**|
||204
97
1,030
3,111
245
259
(600)
(816)
(2,221)
(4,661)|
||**(1,342)**
**(2,010)**|
||(169)
(205)
1,394
2
(125)
(125)|
||**1,100**
**(328)**|
|||
||**450**
**202**|
||**3,819**
3,617
**4,269**
**3,819**|
The notes on pages 43 to 63 form part of the financial statements.
42
## **NOTES TO THE FINANCIAL STATEMENTS**
|1
**Tuition Fees and Education Contracts**
**Higher education**
Full time undergraduate home/EU fees
Full time postgraduate home/EU fees
Part time home/EU fees
Overseas fees
Research fees
Other fees and support grants
**Total tuition fees and education contracts**|**Group Trinity Laban**
**Group Trinity Laban**
**2021**
**2021**
**2020**
**2020**
**£000**
**£000**
**£000**
**£000**
7,523
7,523
7,814
7,814
1,268
1,268
1,438
1,438
377
377
355
355
2,698
2,698
2,403
2,403
130
130
79
79
2,106
2,106
2,353
2,353|
|---|---|
||**14,102**
**14,102**
**14,442**
**14,442**|
|||
||
|
|2
**Recurrent grants**
Teaching grant
**Specific grants**
HEIF grant
Research grant
Disability grant
Other revenue grants
Capital grant
**Funding Body Grants**
**Total funding body contracts**
|**Group Trinity Laban**
**Group Trinity Laban**
**2021**
**2021**
**2020**
**2020**
**£000**
**£000**
**£000**
**£000**
4,748
4,748
4,768
4,768
460
460
521
521
270
270
255
255
55
55
53
53
69
69
-
-
231
231
219
219|
||**5,833**
**5,833**
**5,816**
**5,816**|
||
|
|3
**Research Grants and Contracts**
**Group Trinity Laban**
**Group Trinity Laban**
**2021**
**2021**
**2020**
**2020**
**£000**
**£000**
**£000**
**£000**
UK based charities
8
8
-
-
**Total research grants and contracts**
**8**
**8**
**-**
**-**
Note The source of grant and fee income, included in notes 1 to 3 is as follows:
**Group Trinity Laban**
**Group Trinity Laban**
**Grant and Fee income**
**2021**
**2021**
**2020**
**2020**
**£000**
**£000**
**£000**
**£000**
Grant income from the OfS
5,103
5,103
5,040
5,040
Grant income from other bodies
730
730
776
776
11,866
11,866
12,010
12,010
138
138
79
79
2,106
2,106
2,353
2,353
**Total grant and fee income**
**19,943**
**19,943**
**20,258**
**20,258**
Fee income for taught awards (exclusive of
VAT)
Fee income for research awards (exclusive
of VAT)
Fee income from non-qualifying courses
(exclusive of VAT)|**Group Trinity Laban**
**Group Trinity Laban**
**2021**
**2021**
**2020**
**2020**
**£000**
**£000**
**£000**
**£000**
8
8
-
-|
||**8**
**8**
**-**
**-**|
||**19,943**
**19,943**
**20,258**
**20,258**|
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
|4
**Other Income**
Other services rendered
Residence and catering operations
Other revenue grants
Other capital grants
Other income
**Total other income**|**Group Trinity Laban**
**Group Trinity Laban**
**2021**
**2021**
**2020**
**2020**
**£000**
**£000**
**£000**
**£000**
145
99
250
128
2,170
2,166
2,013
1,958
946
621
882
801
397
369
397
369
240
206
472
315|
|---|---|
||**3,898**
**3,461**
**4,014**
**3,571**|
|||
|5
**Investment Income**
Note
Investment income on
endowments
20
Other Investment Income
**Total investment income**
6
**Donations and Endowments**
New Endowments
Donations with Restrictions
Unrestricted Donations
**Total donations and endowments**|**Group Trinity Laban**
**Group Trinity Laban**
**2021**
**2021**
**2020**
**2020**
**£000**
**£000**
**£000**
**£000**
238
238
237
237
7
20
22
35
**245**
**258**
**259**
**272**
**Group Trinity Laban**
**Group Trinity Laban**
**2021**
**2021**
**2020**
**2020**
**£000**
**£000**
**£000**
**£000**
1,394
1,394
2
2
2,074
2,012
1,840
1,806
15
-
2,168
2,138|
||**3,483**
**3,406**
**4,010**
**3,946**|
|||
|7
**Staff Costs**
Wages, salaries and fees
Social security costs
Movement on USS provision
Other pension costs|**Group Trinity Laban**
**Group Trinity Laban**
**2021**
**2021**
**2020**
**2020**
**£000**
**£000**
**£000**
**£000**
12,749
12,386
12,699
12,315
1,026
1,010
1,039
1,016
(279)
(279)
(2,488)
(2,488)
2,353
2,342
2,287
2,264|
||**15,849**
**15,459**
**13,537**
**13,107**|
|||
Of the staff costs £390,285 (2020: £430,458) related to The Blackheath Halls.
## **Remuneration of higher paid staff**
The emoluments of the highest paid director (the Principal) was:
|Basic salary
Payment in lieu of pensions|**Group Trinity Laban**
**Group Trinity Laban**
**2021**
**2021**
**2020**
**2020**
**£000**
**£000**
**£000**
**£000**
190
190
190
190
45
45
45
45|
|---|---|
||**235**
**235**
**235**
**235**|
|||
The remuneration package of the Principal (CEO) is considered and then determined on an annual basis by the Remuneration Committee (a committee of the Board of Governors of Trinity Laban Conservatoire of Music
44
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
and Dance). In determining remuneration, the Committee takes into account the performance of the Principal in meeting the objectives set by the Board for the previous academic year; success against strategic objectives; and the financial performance of the institution. Due regard is also given to median salary levels within the Conservatoire. The appropriateness of the remuneration package is tested via benchmarking remuneration package levels against similar institutions within Central London and the sector. Trinity Laban Conservatoire of Music and Dance recognises that the skills of its Principal (CEO) not only influence artistic and educational success but are also intrinsically linked to successful business development and the financial success and sustainability of the institution.
There was no accommodation provided for the Principal.
Basic salary ratio: Head of provider basic salary/Median basic salary of whole workforce.
|**Group**|**Group**|
|---|---|
|**2021**|**2020**|
|**£190,000 / £40,699 = 4.67**|**£190,000 / £42,937 = 4.43**|
Total remuneration ratio: Head of provider total remuneration/Median total remuneration of whole workforce.
**----- Start of picture text -----**
Group Group
2021 2020
£234,992 / £44,107 = 5.33 £234,992 / £44,107 = 5.33
**----- End of picture text -----**
## **Remuneration of senior paid staff excluding employer's pension contributions**
|£100,000 - £105,000
**Staffing number (FTEs)**
Academic
Academic support
Administrative
Blackheath Halls
Casual Staff|**2021**
**2020**
**Number**
**Number**
-
1
**Group Trinity Laban**
**Group Trinity Laban**
**2021**
**2021**
**2020**
**2020**
73
73
73
73
78
78
74
74
67
67
69
69
16
-
16
-
106
106
101
101|
|---|---|
||**340**
**324**
**333**
**317**|
|||
## **Key Management Personnel**
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Conservatoire and Group. Staff costs includes compensation paid to key management personnel. Key management personnel for the Conservatoire are the members of the Principal's Management Group and for the Group this includes the General Manager of Blackheath Halls. Compensation consists of salary and benefits excluding any employer's pension contribution.
|consists of salary and benefits excluding any|employer's pension contribution.|
|---|---|
|Remuneration
Pension Costs|**Group Trinity Laban**
**Group Trinity Laban**
**2021**
**2021**
**2020**
**2020**
**£000**
**£000**
**£000**
**£000**
886
828
924
866
120
108
125
114|
||**1,006**
**936**
**1,049**
**980**|
|||
45
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
The amount for the key management personnel quoted above relates to the following key personnel:
Principal Registrar Director of Finance and Estates Director of Strategy and Business Operations Director of Dance Director of Blackheath Halls Director of Music Director of Corporate Affairs
## **Board Members**
No board members received payments to cover expenses during the year ended 31 July 2021 and other than under a contract of employment no other board member received any payments. (2020: Nil; £nil).
**----- Start of picture text -----**
8 Interest and other finance costs Group Trinity Laban Group Trinity Laban
2021 2021 2020 2020
£000 £000 £000 £000
Interest payable 8 8 15 15
Bank and credit card charges 67 63 70 64
Net charge on pension scheme 94 94 120 120
169 165 205 199
**----- End of picture text -----**
|||
|---|---|
|9
**Other operating expenses**
Academic and related expenditure
Academic support services
Other support services
Administration and central services
Auditor's remuneration:
External audit
Tax compliance services
Other non-audit services
Internal audit
General education
Scholarships, bursaries and prizes
Student accommodation costs
Other expenses
Premises (including service concession
cost)|**Group Trinity Laban**
**Group Trinity Laban**
**2021**
**2021**
**2020**
**2020**
**£000**
**£000**
**£000**
**£000**
720
1,066
706
760
363
362
361
358
232
232
342
341
1,134
1,140
936
1,188
58
48
56
46
4
4
2
2
32
31
32
30
41
41
29
29
157
110
198
156
1,951
1,951
1,910
1,910
2,016
1,927
1,792
1,667
2,128
2,127
2,216
2,216
236
240
421
385|
||**9,072**
**9,279**
**9,001**
**9,088**|
|||
||**Group Trinity Laban**|**Group Trinity Laban**|**Group Trinity Laban**|**Group Trinity Laban**|
|---|---|---|---|---|
||**2021**|**2021**|**2020**|**2020**|
||**£000**|**£000**|**£000**|**£000**|
|Operating lease payments|||||
|Land and buildings|226|226|226|226|
|Other|41|41|47|47|
46
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
**----- Start of picture text -----**
10 Access and Participation Group Group
2021 2020
£ £
Access Investment 282,166 391,609
Financial Support 313,825 282,765
Disability Support (excluding expenditure included in the two categories
above) 87,558 100,022
Research and Evaluation 40,603 19,678
724,152 794,074
**----- End of picture text -----**
The total of the approved expenditure in our Access and Participation Plan for the year ended 31 July 2021 was £810,738. Our published Access and Participation plans can be found here.
47
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
**----- Start of picture text -----**
11 Fixed Assets
Freehold Leasehold Assets in Fixtures,
land and land and the course of fittings and Musical
Group buildings buildings construction equipment instruments Total
£000 £000 £000 £000 £000 £000
Cost
At 1 August 2020 41,578 13,128 178 10,367 7,042 72,293
Additions 11 - 66 404 119 600
Transfers - - - - - -
Disposals - - - - (25) (25)
At 31 July 2021 41,589 13,128 244 10,771 7,136 72,868
Depreciation
-
At 1 August 2020 15,060 5,550 9,323 2,421 32,354
Charge for year 652 238 - 336 327 1,553
Transfers - - - - - -
Disposals - - - - (15) (15)
At 31 July 2021 15,712 5,788 - 9,659 2,733 33,892
Net book value
At 31 July 2021 25,877 7,340 244 1,112 4,403 38,976
At 1 August
2020 26,518 7,578 178 1,044 4,621 39,939
Freehold Leasehold Assets in Fixtures,
land and land and the course of fittings and Musical
Trinity Laban buildings buildings construction equipment instruments Total
£000 £000 £000 £000 £000 £000
Cost
At 1 August 2020 35,656 13,127 171 10,224 7,027 66,205
Additions - - 43 402 119 564
Transfers - - - - - -
Disposals - - - - (25) (25)
At 31 July 2021 35,656 13,127 214 10,626 7,121 66,744
Depreciation
-
At 1 August 2020 14,654 5,550 9,202 2,405 31,811
Charge for year 480 238 - 327 327 1,372
Disposals - - - - (15) (15)
At 31 July 2021 15,134 5,788 - 9,529 2,717 33,168
Net book value
At 31 July 2021 20,522 7,339 214 1,097 4,404 33,576
At 1 August
2020 21,002 7,577 171 1,022 4,622 34,394
**----- End of picture text -----**
At 31 July 2021, freehold land and buildings included £5,540,000 (2020: £5,540,000) in respect of freehold land and is not depreciated.
## **Endowment assets**
Included within freehold land and buildings is £37,333 of endowment properties valued at fair value.
## **Revaluation of Laban land and Blackheath Halls land and buildings**
The Conservatoire took advantage of the option available to first-time adopters of FRS 102 in respect of its building and land assets, which were previously held at cost. The option allows first-time adopters of FRS102 to revalue certain assets to fair value at the date of transition (in this case 1 August 2014) and use this figure as their deemed cost.
48
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **Valuation of Laban land**
The freehold property comprising Laban Building (land only) was valued as at 31 July 2015 by an external valuer, Gerald Eve LLP, a regulated firm of Chartered Surveyors. The valuations were prepared in accordance with the requirements of the RICS Valuation – Professional Standards: January 2014 (updated December 2014), the International Valuation Standards and International Financial Reporting Standards. The valuation of this property was on the basis of Fair Value, equated to Market Value, on the assumption of vacant possession. It was principally derived using the Comparative Method of Valuation. Based on the facts, assumptions and qualifications set out in their report, Gerald Eve LLP are of the opinion that the Fair Value of the freehold interest in the "Property" (Laban land) as at 31 July 2015, was the sum of £5,540,000.
## **Valuation of Blackheath Halls land and buildings**
The freehold property comprising Blackheath Halls was valued as at 31 July 2015 by an external valuer, Gerald Eve LLP, a regulated firm of Chartered Surveyors. The valuations were prepared in accordance with the requirements of the RICS Valuation – Professional Standards: January 2014 (updated December 2014), the International Valuation Standards and International Financial Reporting Standards. The valuation of this property was on the basis of Fair Value, equated to Market Value, on the assumption of vacant possession. It was principally derived using the Comparative Method of Valuation. Based on the facts, assumptions and qualifications set out in their report, Gerald Eve LLP are of the opinion that the Fair Value of the freehold interest in the "Property" (Blackheath Halls land and buildings) as at 31 July 2015, was the sum of £2,650,000.
The value of the Blackheath Halls land and buildings at the transition date was estimated to be £2,631,606 based on the valuation at 31 July 2015 and the capital additions and depreciation during the year ended 31 July 2015. The historic cost of the land and buildings as at 31 July 2014 was £1,230,294 and so the revaluation gain was £1,401,312.
## **Assets in the course of construction**
Assets in the course of construction within Trinity Laban, consist of the purchase and ongoing development of a new student record system. Within the Group, there is also ongoing landscaping work at Blackheath Halls.
|12
**Non-Current Investments**
**Fixed asset investments**
**At 1 August**
Additions
Disposals
**At 31 July**
Increase/(Decrease) in market value of
investments|**Group Trinity Laban**
**Group Trinity Laban**
**2021**
**2021**
**2020**
**2020**
**£000**
**£000**
**£000**
**£000**
**9,424**
**9,424**
**8,038**
**8,038**
2,221
2,221
4,661
4,661
(1,030)
(1,030)
(3,111)
(3,111)
1,910
1,910
(164)
(164)|
|---|---|
||**12,525**
**12,525**
**9,424**
**9,424**|
|||
The non-current investments have been valued at market value and are all listed investments.
|13
**Stock**
General consumables|**Group Trinity Laban**
**Group Trinity Laban**
**2021**
**2021**
**2020**
**2020**
**£000**
**£000**
**£000**
**£000**
6
2
5
1|
|---|---|
||**6**
**2**
**5**
**1**|
|||
49
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
**----- Start of picture text -----**
|||||||
|---|---|---|---|---|---|
|14|Trade and Other Receivables|Group|Trinity Laban|Group|Trinity Laban|
|2021|2021|2020|2020|
|£000|£000|£000|£000|
|Trade receivables|129|120|153|138|
|Other receivables|10|3|91|91|
|Prepayments and accrued income|228|217|363|340|
|Amounts due from subsidiary companies|-|636|-|564|
|367|976|607|1,133|
**----- End of picture text -----**
## 15 **Trade and other receivables: falling due in more than one year**
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|Long term intercompany loan|Group|Trinity Laban|Group|Trinity Laban|
|2021|2021|2020|2020|
|£000|£000|£000|£000|
|Long term interest free intercompany loan|-|560|-|560|
|Long term intercompany loan|-|532|-|557|
|-|1,092|-|1,117|
**----- End of picture text -----**
This is a long term interest free intercompany loan extended to Blackheath Halls. The long term intercompany loan was for the refurbishment of the Great hall in Blackheath Halls. Interest on the long term intercompany loan is accrued at the rate of 2.2% per annum.
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|16|Creditors: amounts falling due within one|
|year|Group|Trinity Laban|Group|Trinity Laban|
|2021|2021|2020|2020|
|£000|£000|£000|£000|
|Unsecured loans|125|125|125|125|
|Trade Payables|295|275|261|214|
|Taxation and social security|513|507|507|500|
|Other creditors|168|159|124|116|
|Accruals|1,659|1,616|1,469|1,433|
|Deferred income|2,746|2,638|2,644|2,547|
|5,506|5,320|5,130|4,935|
**----- End of picture text -----**
## **Deferred Income**
The breakdown for deferred income is as follows with the income deferred until specific performance related conditions have been met.
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|Group|Trinity Laban|Group|Trinity Laban|
|2021|2021|2020|2020|
|£000|£000|£000|£000|
|Donations|2,025|2,025|1,904|1,904|
|Grant Income|599|571|631|603|
|Other Income|122|42|109|40|
|2,746|2,638|2,644|2,547|
**----- End of picture text -----**
50
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
|17
Deferred income
Unsecured loans
**Creditors: amounts falling due after more**
**than one year**|**Group Trinity Laban**
**Group Trinity Laban**
**2021**
**2021**
**2020**
**2020**
**£000**
**£000**
**£000**
**£000**
13,937
13,501
14,329
13,905
406
406
531
531|
|---|---|
||**14,343**
**13,907**
**14,860**
**14,436**|
|||
All of the deferred income relates to long term deferred capital grants.
|18|**Creditors: amounts falling due after more**|||||
|---|---|---|---|---|---|
||**than one year**|**Group **|**Trinity Laban**|**Group **|**Trinity Laban**|
||**Analysis of secured and unsecured loans**|**2021**|**2021**|**2020**|**2020**|
|||**£000**|**£000**|**£000**|**£000**|
||Due within one year or on demand (Note 16)|125|125|125|125|
||Due between one and two years|406|406|125|125|
||Due between two and five years|-|-|375|375|
||Due in five years or more|-|-|31|31|
||**Due after more than one year**|406|406|531|531|
||**Total unsecured loans**|**531**|**531**|**656**|**656**|
||**Analysis of secured and unsecured loans**|**Group **|**Trinity Laban**|**Group **|**Trinity Laban**|
|||**2021**|**2021**|**2020**|**2020**|
|||**£000**|**£000**|**£000**|**£000**|
||Unsecured loans repayable by Aug 2022|406|406|531|531|
||**Included in loans are the following:**|||||
|||**Amount**||||
||**Lender**|**£'000**|**Term**|**Interest rate**|**Borrower**|
||Lloyds|531|Aug 2022|1.45%|Trinity Laban|
|19 **Provisions for Liabilities**
**Group**
**At 1 August 2020**
Utilised
**At 31 July 2021**
**Trinity Laban**
**At 1 August 2020**
Utilised
**At 31 July 2021**|**Obligation to**
**Fund Deficit**
**on USS**
**Pension**
**Defined**
**Benefit**
**Obligations**
**Total**
**Pension**
**Provisions**
**£000**
**£000**
**£000**
2,739
5,330
8,069
(258)
(2,311)
(2,569)|
|---|---|
||**2,481**
**3,019**
**5,500**|
||**Obligation to**
**Fund Deficit**
**on USS**
**Pension**
**Defined**
**Benefit**
**Obligations**
**Total**
**Pension**
**Provisions**
**£000**
**£000**
**£000**
2,739
5,330
8,069
(258)
(2,311)
(2,569)|
||**2,481**
**3,019**
**5,500**|
|||
51
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
Unwinding of discount is included in additional provisions in line with FRS 102. Please refer to note 27 for more details and the actuarial assumptions for all of the pension schemes.
## **USS deficit**
The obligation to fund the past deficit on the Universities Superannuation Scheme (USS) arises from the contractual obligation with the pension scheme for total payments relating to benefits arising from past performance. Management have assessed future employees within the USS scheme and salary payment over the period of the contracted obligation in assessing the value of this provision. Please refer to note 27 for more details.
## 20 **Endowments**
|**Group**
**At 1 August**
Original cost
Indexation of capital
Unapplied total return
**Total**
**Movements in the reporting period:**
New endowments
Investment income
Other Income
Expenditure
Transfer from Restricted Reserves
**At 31 July**
**Represented by:**
Original cost
Indexation of capital
Unapplied total return
**Total**
Increase/(Decrease) in market value of
investments
**Total endowment comprehensive**
**(expenditure)/income for the year**|**Restricted**
**Expendable**
**Restricted**
**Permanent**
**Total**
**Total**
**2021**
**2021**
**2021**
**2020**
**£000**
**£000**
**£000**
**£000**
691
3,483
4,174
4,317
-
1,164
1,164
1,089
-
1,444
1,444
1,609
**691**
**6,091**
**6,782**
**7,015**
3
1,391
1,394
2
6
143
149
152
-
1
1
3
(74)
(213)
(287)
(289)
-
1,160
1,160
(101)|
|---|---|
||(65)
2,482
2,417
(233)|
||5
3
8
-
**631**
**8,576**
**9,207**
**6,782**|
||631
4,957
5,588
4,174
-
1,347
1,347
1,164
-
2,272
2,272
1,444|
||**631**
**8,576**
**9,207**
**6,782**|
The Conservatoire has adopted a total returns policy for the investment of its permanent endowments and has decided that it is in the best interests of the Conservatoire to account for its expendable endowment capital in the same way, though there is no legal restriction on the power to spend such capital. The opening balances have been restated to this effect.
52
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
**----- Start of picture text -----**
Restricted Restricted
Expendable Permanent Total Total
2021 2021 2021 2020
Analysis by type of purpose: £000 £000 £000 £000
Scholarships and bursaries 536 7,771 8,307 5,966
Prize funds 90 658 748 659
General 5 147 152 157
631 8,576 9,207 6,782
Analysis by asset: 2021 2020
£000 £000
Global equities 12,143 9,043
UK government bonds 349 351
Other permanent and expendable investments 698 532
Property 37 37
Cash & cash equivalents 1,019 899
Assets apportioned to restricted reserves (3,061) (2,430)
Assets apportioned to unrestricted reserves (1,978) (1,650)
9,207 6,782
**----- End of picture text -----**
53
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## 21 **Restricted reserves**
## **Reserves with restrictions are as follows:**
|**Group**
**Restricted**
**donations**
**2021**
**2021**
**£000**
**£000**
**At 1 August**
350
2,984
New donations
12
2,088
Investment income
2
42
Capital grants utilised
(19)
-
Expenditure
-
(1,922)
17
436
12
644
Transfers from unrestricted reserves
-
94
Transfers to endowment resrves
-
(8)
**At 31 July**
**362**
**3,714**
**Trinity Laban**
**Restricted**
**donations**
**2021**
**2021**
**£000**
**£000**
**At 1 August**
350
2,984
New donations
-
2,012
Investment income
2
42
Capital grants utilised
(7)
-
Expenditure
-
(1,852)
17
436
12
638
Transfers from unrestricted reserves
-
100
Transfers to endowment resrves
-
(8)
**At 31 July**
**362**
**3,714**
**Analysis of other restricted funds/donations by type of purpose:**
Scholarships and bursaries
Prize funds
General
**Total restricted comprehensive income**
**for the year**
**Total restricted comprehensive income**
**for the year**
**Unspent**
**capital grants**
Increase/(Decrease) in market value of
investments
**Unspent**
**capital grants**
Increase/(Decrease) in market value of
investments|**Restricted**
**donations**
**2021**
**2021**
**£000**
**£000**
350
2,984
12
2,088
2
42
(19)
-
-
(1,922)
17
436
**Unspent**
**capital grants**|
**Total**
**Total**
**2021**
**2020**
**£000**
**£000**
3,334
3,223
2,100
1,840
44
48
(19)
-
(1,922)
(1,838)
453
(41)|
|---|---|---|
||12
644|656
9|
||-
94
-
(8)
**362**
**3,714**|94
102
(8)
-
**4,076**
**3,334**|
||**Restricted**
**donations**
**2021**
**2021**
**£000**
**£000**
350
2,984
-
2,012
2
42
(7)
-
-
(1,852)
17
436
**Unspent**
**capital grants**|
**Total**
**Total**
**2021**
**2020**
**£000**
**£000**
3,334
3,223
2,012
1,806
44
48
(7)
-
(1,852)
(1,804)
453
(41)|
||12
638|650
9|
||-
100
-
(8)
**362**
**3,714**|100
102
(8)
-
**4,076**
**3,334**|
|||**Total**
**Total**
**2021**
**2020**
**£000**
**£000**
487
414
22
27
3,205
2,543|
|||**3,714**
**2,984**|
54
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
**----- Start of picture text -----**
22 Cash and cash equivalents At 1 August At 31 July
2020 Cashflows 2021
£000 £000 £000
Cash at bank 3,819 451 4,270
3,819 451 4,270
**----- End of picture text -----**
## 23 **Lease Commitments**
At 31 July 2021, the Conservatoire and the Group had future minimum lease payments as follows
|**Payable during the year**
**Future minimum lease payments due:**
Less than 1 year
Between 2-5 years
More than 5 years|**Land and**
**buildings**
**Other**
**Land and**
**buildings**
**Other**
**2021**
**2021**
**2020**
**2020**
**£000**
**£000**
**£000**
**£000**
226
41
226
47
226
20
226
9
903
56
903
-
25,519
-
25,744
-|
|---|---|
||**26,648**
**76**
**26,873**
**9**|
55
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## 24 **Subsidiary Undertakings**
The Conservatoire has a 100% holding in The Blackheath Halls and BCH Enterprises Limited, companies limited by guarantee, both with the registered Office as King Charles Court, Old Naval College, Greenwich, London, SE10 9JF. The Blackheath Halls is a registered charity with the objective to raise funds to advance education by the encouragement of the arts. BCH Enterprises Limited main activity is the provision of hall hire and associated catering services.
The country of incorporation of both subsidiaries is the UK.
|**a) The Blackheath Halls**
Income
Expenditure
Net Income/(Expenditure)
Total funds brought forward
Net Assets
**b) Blackheath (Enterprises) Limited**
Turnover
Cost of sales
Gross profit
Administration expenses
Interest payable
**Profit on ordinary activities before taxation**
Tax on profit on ordinary activities
**Profit for the financial year**
Total funds brought forward
Qualifying charitable distribution to parent
**Net assets**|**2021**
**2020**
**£000**
**£000**
884
877
(750)
(915)|
|---|---|
||**134**
**(38)**|
||3,350
3,388|
||**3,484**
**3,350**|
||**2021**
**2020**
**£000**
**£000**
84
177
(51)
(87)|
||33
90
(26)
(51)
(1)
(2)|
||**6**
**37**|
||-
-|
||**6**
**37**|
||4
4
-
(37)|
||**10**
**4**|
|||
56
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## 25 **Related Party Transactions**
Trinity Laban had transactions with the following related parties during the year. All these related party transactions were held at "arm's length".
**----- Start of picture text -----**
Income/(Expenditure) Debtor/(Creditor) Balance
Related Party 2021 2020 2021 2020
£000 £000 £000 £000
- -
Trinity Laban Students Union (43) (51)
- -
Trinity College London (9) (14)
- - -
London Borough of Lewisham (2)
One Dance UK (2) (2) - -
- -
London Higher (5) (6)
Conservatoires UK (4) (4) - -
- -
Velocity 400 (40) (34)
Advance HE (14) - - -
**----- End of picture text -----**
## 26 **Ultimate Controlling Party**
The Group and Company had no ultimate controlling party as at 31 July 2021.
## 27 **Pension Costs**
## **TOTAL PENSION COSTS**
The total pension cost, including administration charges, for each scheme of the Conservatoire was as follows:
**----- Start of picture text -----**
2021 2020
£000 £000
Contributions to TPS 1,059 1,043
Contributions to USS 1,121 1,117
Contributions to LPFA / LGPS 35 40
Contributions to TCMPA 202 200
Contributions to other schemes 91 46
FRS102 adjustment on L&G and LPFA schemes (159) (159)
Total pension costs 2,349 2,287
**----- End of picture text -----**
## **PENSION SCHEMES**
The two principal pension schemes for the Conservatoire's staff are the Teachers' Pension Scheme (TPS) and the Universities Superannuation Scheme (USS) for administrative staff. In addition, administrative staff were eligible for membership of the London Pension Fund Authority (LPFA) up to 31 July 2005 and of the Trinity College of Music Pension and Assurance (TCMPA) Scheme up to 31 December 2001.
## **Teachers' Pension Scheme (TPS)**
Trinity Laban participates in TPS, a defined benefit pension scheme. TPS is an unfunded scheme and contributions are credited on a “pay-as-you-go” basis to the Exchequer under arrangements governed by the Superannuation Act 1972. Actuarial valuations are carried out on a notional set of investments. Under the definitions set out in FRS 102 “Retirement and post employment benefits”, the TPS is a multi-employer pension scheme and Trinity Laban is unable to identify its share of the underlying (notional) assets and liabilities of the scheme. Accordingly, the Conservatoire has taken advantage of the exemption in Section 28
57
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
of FRS 102 “Employee benefits” and has accounted for its contributions to the scheme as if it were a defined contribution scheme.
As a result, the amount charged to the income and expenditure account represents the contributions payable to the scheme in respect of the accounting period. The total cost charged to the comprehensive income and expenditure account is £1,059,002 (2020: £1,043,270) as shown above.
As regards the scheme, the pensions cost is assessed every five years in accordance with advice from the government actuary. The last actuarial valuation carried out was in March 2012 using the projected unit method. The 2012 actuarial review showed (1) investment return assumed at 5% per annum; (2) pension increases assumed at 2% per annum; (3) salary increases assumed at 5% per annum; (4) value of total scheme liabilities as £191.5bn; (5) value of notional assets as £176.6bn; and (6) shortfall of £14.9bn. The assets therefore were sufficient to cover 92% of the benefits which had accrued to members after allowing for expected future increases in earnings.
Following the implementation of Teachers’ Pensions (Employers’ Superannuation Contributions) Regulations 2000 the government actuary carried out a further review on the level of employers’ contributions. For the period from 1 April 2002 to 31 March 2003 the employer contribution was 8.35%. This rate increased to 13.5% from 1 April 2003. From January 2007 the employer contribution rate was revised to 14.1%. From 1 September 2015 the employer contribution rate was increased to 16.4%. From 1 September 2019 the employer contribution rate was increased to 23.7%.
## **Universities Superannuation Scheme (USS)**
## **Significant accounting policies**
The institution participates in Universities Superannuation Scheme. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The institution is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 “Employee benefits”, the institution therefore accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the profit and loss account represents the contributions payable to the scheme. Since the institution has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the institution recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) with related expenses being recognised through the profit and loss account.
## **Critical accounting judgements**
FRS 102 makes the distinction between a group plan and a multi-employer scheme. A group plan consists of a collection of entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such as Universities Superannuation Scheme. The accounting for a multi-employer scheme where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense in profit or loss in accordance with section 28 of FRS 102. The directors are satisfied that Universities Superannuation Scheme meets the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the recovery plan in existence at the date of approving these financial statements.
The total cost charged to the profit and loss account is £1,120,732 (2020: £1,117,424), as shown in this note above.
The latest available complete actuarial valuation of the Retirement Income Builder is at 31 March 2018 (the valuation date), which was carried out using the projected unit method. A valuation as at 31 March 2020 is underway but not yet complete.
Since the institution cannot identify its share of USS Retirement Income Builder (defined benefit) assets and liabilities, the following disclosures reflect those relevant for those assets and liabilities as a whole.
The 2018 valuation was the fifth valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to adopt a statutory funding objective, which is to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £63.7 billion and the value of the scheme’s technical provisions was £67.3 billion indicating a shortfall of £3.6 billion and a funding ratio of 95%.
58
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
The key financial assumptions used in the 2018 valuation are described below. More detail is set out in the Statement of Funding Principles.
**----- Start of picture text -----**
2021 2020
% pa % pa
Discount rate 1 1
Pensionable salary growth n/a n/a
Pension increases (CPI) 3 2
**----- End of picture text -----**
The main demographic assumption used relates to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 2018 actuarial valuation. The mortality assumptions used in these figures are as follows:
|2021
2020
Mortality base table
Pre Retirement
71% of AMC00 (duration 0) for
males and 112% of AFC00
(duration 0) for females.
71% of AMC00 (duration 0) for
males and 112% of AFC00
(duration 0) for females.
Post Retirement
97.6% of SAPS S1NMA “light”
for males and 102.7% of RFV00
for females.
97.6% of SAPS S1NMA “light”
for males and 102.7% of RFV00
for females.
Future improvements to mortality
CMI_2017 with a smoothing
parameter of 8.5 and a long term
improvement rate of 1.8% pa for
males and 1.6% pa for males
CMI_2017 with a smoothing
parameter of 8.5 and a long term
improvement rate of 1.8% pa for
males and 1.6% pa for females
**2021**
**2020**
Males currently aged 65 (years)
25
24
Females currently aged 65 (years)
26
26
Males currently aged 45 (years)
27
26
Females currently aged 45 (years)
28
28
The scheme assets and liabilities at the accounting year end are as follows
Scheme assets
£63.7bn
£63.7bn
Total scheme liabilities
£67.3bn
£67.3bn
FRS102 total scheme deficit
£3.6bn
£3.6bn
FRS102 total funding level
1
1|2021
2020
Mortality base table
Pre Retirement
71% of AMC00 (duration 0) for
males and 112% of AFC00
(duration 0) for females.
71% of AMC00 (duration 0) for
males and 112% of AFC00
(duration 0) for females.
Post Retirement
97.6% of SAPS S1NMA “light”
for males and 102.7% of RFV00
for females.
97.6% of SAPS S1NMA “light”
for males and 102.7% of RFV00
for females.
Future improvements to mortality
CMI_2017 with a smoothing
parameter of 8.5 and a long term
improvement rate of 1.8% pa for
males and 1.6% pa for males
CMI_2017 with a smoothing
parameter of 8.5 and a long term
improvement rate of 1.8% pa for
males and 1.6% pa for females
**2021**
**2020**
Males currently aged 65 (years)
25
24
Females currently aged 65 (years)
26
26
Males currently aged 45 (years)
27
26
Females currently aged 45 (years)
28
28
The scheme assets and liabilities at the accounting year end are as follows
Scheme assets
£63.7bn
£63.7bn
Total scheme liabilities
£67.3bn
£67.3bn
FRS102 total scheme deficit
£3.6bn
£3.6bn
FRS102 total funding level
1
1|
|---|---|
|**Movement in deficit during the year in USS scheme:**
Scheme deficit as at 1 August
Service credit
Net interest on the defined liability
**Scheme deficit as at 31 July**|**2021**
**2020**
**£'000**
**£'000**
(2,739)
(5,146)
278
2,488
(20)
(81)
**(2,481)**
**(2,739)**|
## **Disclosures in respect of the London Pension Fund Authority Scheme (LPFA)**
This scheme, for administrative staff, is a defined benefit scheme and has been closed to new members since the merger of Trinity and Laban on 1 August 2005. The pension benefits for existing members continued to be provided under the LPFA scheme.
59
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
The latest formal triennial valuation was carried out by the scheme's actuary Barnet Waddingham as at 31 March 2019 using the projected unit method, with the valuation results taking into account changes to the scheme from 1 April 2017. The valuation showed (1) discount rate assumed at 1.35%; (2) pension increases assumed at 2.25% per annum; (3) salary increases assumed at 3.25% per annum; (4) value of total scheme liabilities as £6.7m; (5) value of notional assets as £5.2m; and (6) shortfall of £1.52m. The assets therefore were sufficient to cover 78% of the benefits which had accrued to members after allowing for expected future increases in earnings.
The major assumptions by the actuary in valuing liabilities as at 2021 and 2020 were:
||**2021**|**2020**|
|---|---|---|
||**% pa**|**% pa**|
|Discount rate|2|1|
|Expected pension increases (limited price indexation)|3|2|
|Inflation rate|3|2|
|Salary increases|4|3|
The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are:
**----- Start of picture text -----**
2021 2020
Retiring today
Males 23 23
Females 24 24
Retiring in 20 years
Males 23 23
Females 26 26
**----- End of picture text -----**
The expected rate of return on the assets and the fair values of the assets of the LPFA scheme were as follows:
**----- Start of picture text -----**
2021 2020 2019 2018
Fair Value Fair Value Fair Value Fair Value
£'000 £'000 £'000 £'000
Equities 3,400 3,015 2,837 2,894
Alternative assets 1,055 888 774 603
Target return portfolio 1,326 1,249 1,323 1,056
Cash 239 337 275 219
Total market value of assets 6,020 5,489 5,209 4,772
Present value of scheme liabilities (8,466) (8,218) (6,695) (6,081)
Deficit in the scheme (2,446) (2,729) (1,486) (1,309)
**----- End of picture text -----**
For accounting years after 1 January 2015, the expected rate of return and the interest cost was replaced by a single net interest cost, which will effectively set the expected return equal to the discount rate. Therefore, for 2021 this was 1.6% and 2020 this was 1.4%.
60
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **Amounts recognised in the consolidated statement of comprehensive income and expenditure (LPFA Scheme)**
**----- Start of picture text -----**
2021 2020
£'000 £'000
Service cost (78) (83)
Employer contributions 35 42
Administration expenses (7) (7)
Net interest on the defined liability (37) (30)
Total actuarial gain/(loss) 370 (1,165)
Total comprehensive income/(expenditure) for the year 283 (1,243)
**----- End of picture text -----**
## **Movement in deficit during the year (LPFA scheme):**
**----- Start of picture text -----**
2021 2020
£'000 £'000
Scheme deficit as at 1 August (2,729) (1,486)
Service cost (78) (83)
Employer contributions 35 42
Administration expenses (7) (7)
Net interest on the defined liability (37) (30)
Total actuarial gain/(loss) 370 (1,165)
Scheme deficit as at 31 July (2,446) (2,729)
**----- End of picture text -----**
## **Disclosures in respect of the Trinity College of Music Pension and Assurance Scheme (TCMPA)**
This scheme, for administrative staff, is a defined benefit scheme and with effect from 31 December 2001, has become a closed scheme. The pension benefits for administrative staff in respect of service from that date will be earned within the Universities Superannuation Scheme.
The latest actuarial valuation was carried out as at 31 July 2019 using the projected unit method. The actuarial valuation revealed a deficit of £512,000 in the value of the assets of the scheme of £10,388,000 compared to the actuarial liability of £10,900,000 for pension benefits. This represents a funding shortfall of 5%.
The major assumptions by the actuary in valuing liabilities at 2021 and 2020 were:
||**2021**|**2020**|
|---|---|---|
||**% pa**|**% pa**|
|Discount rate|2|1|
|Expected pension increases (limited price indexation)|3|3|
|Inflation rate|3|3|
The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are:
|assumed life expectations on retirement age 65 are:|||
|---|---|---|
||**2021**|**2020**|
|Retiring today|||
|Males|23|23|
|Females|24|24|
|Retiring in 20 years|||
|Males|24|25|
|Females|26|26|
61
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
The expected rate of return on the assets and the fair values of the assets of the TCMPA scheme were as follows:
**----- Start of picture text -----**
2021 2020 2019 2018
Fair Value Fair Value Fair Value Fair Value
£'000 £'000 £'000 £'000
Bonds 2,212 1,989 2,128 1,929
Equities 6,415 5,467 6,165 6,053
Annuities 1,971 2,136 2,067 2,373
Cash 95 92 28 20
Total market value of assets 10,693 9,684 10,388 10,375
Present value of scheme liabilities (11,266) (12,285) (10,900) (10,205)
Deficit in the scheme (573) (2,601) (512) 170
**----- End of picture text -----**
For accounting years after 1 January 2015, the expected rate of return and the interest cost was replaced by a single net interest cost, which effectively set the expected return equal to the discount rate. Therefore, for 2021 this was 1.70% and 2020 this was 1.45%.
## **Analysis of the movement in the present value of the scheme liabilities (TCMPA scheme)**
**----- Start of picture text -----**
2021 2020
£'000 £'000
Value of liabilities as at 1 August 12,285 10,900
Interest cost 174 220
Past service cost 9 -
Actuarial (gains)/losses from experience (39) 80
Actuarial (gains)/losses from change in financial assumptions (355) 961
Actuarial (gains)/losses from change in demographic assumptions (129) 299
Change in value of secured pensioners (68) 134
Benefits paid (611) (309)
Value of liabilities as at 31 July 11,266 12,285
**----- End of picture text -----**
## **Analysis of the movement in the present value of the scheme assets (TCMPA scheme)**
|Bid value of assets at 1 August
Expected return on assets
Actuarial gains/(losses)
Employer contributions (gross)
Expenses paid by the scheme
Change in value of secured pensioners
Benefits paid
**Bid value of assets as at 31 July**|**2021**
**2020**
**£'000**
**£'000**
9,684
10,388
137
212
1,340
(941)
211
200
-
-
(68)
134
(611)
(309)|
|---|---|
||**10,693**
**9,684**|
|||
62
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **Amounts recognised in the consolidated statement of comprehensive income and expenditure (TCMPA scheme)**
**----- Start of picture text -----**
2021 2020
£'000 £'000
Employer contributions 202 200
- -
Administration expenses
Net interest cost/(credit) on the defined liability 37 (8)
Total actuarial gain/(loss) 1,863 (2,281)
Total comprehensive income/(expenditure) for the year 2,102 (2,089)
Movement in deficit during the year (TCMPA scheme):
2021 2020
£'000 £'000
Scheme deficit as at 1 August (2,601) (512)
Employer contributions 202 200
- -
Administration expenses
Net interest credit on the defined liability (37) (8)
Total actuarial gain/(loss) 1,863 (2,281)
Scheme deficit as at 31 July (573) (2,601)
Consolidated Pension Schemes
Movement in deficit during the year:
2021 2020
£'000 £'000
Scheme deficit as at 1 August (8,069) (7,144)
Service credit 200 2,405
Employer contributions 237 242
Administration expenses (7) (7)
Net interest on the defined liability (94) (119)
Total actuarial loss 2,233 (3,446)
Scheme deficit as at 31 July (5,500) (8,069)
**----- End of picture text -----**
63