## **The Royal School of Needlework**
## **Annual Report and Consolidated Financial Statements**
31 August 2020
Company Registration Number 12192 (England and Wales) Charity Registration Number 312774
## **Contents**
## **Reports**
|Reference and administrative information|Reference and administrative information|Reference and administrative information|1|
|---|---|---|---|
|Report of the Council|||2|
|Statement of corporate governance||||
|and internal control|||21|
||||29|
|**Financial statements**||||
|Consolidated statement of||||
|financial activities|||33|
|Balance sheets|||34|
|Consolidated statement of cash flows|||35|
|Principal accounting policies|||37|
|Notes to the financial statements|||42|
The Royal School of Needlework
## **Reference and administrative information**
|**Patron**|HRH The Duchess of Cornwall|HRH The Duchess of Cornwall||
|---|---|---|---|
|**President**|HRH The Duchess of Gloucester|||
|**Council Members**|Mr Andrew Palmer
|Chairman*||
||Mrs Elizabeth Braakenburg Dyce|||
||Ms Nicola Clarke*|||
||Prof Patsy Cullen|||
||Mrs Caroline De Guitaut|||
||Ms Victoria Farrow|||
||Mrs Morgan Fowles|||
||Miss Samantha Hoe-Richardson||Honorary|
||Treasurer*|||
||Ms Deborah Lamb|||
||Ms Reena Pastakia*|||
||Mrs Stephanie Wright*|||
||*Member of the Finance and Investment|||
||Committee|||
|**Chief Executive**|Dr Susan Kay-Williams|||
|**Registered office**|Apartment 12A|||
||Hampton Court Palace|||
||East Molesey|||
||Surrey|||
||KT8 9AU|||
|**Auditor**|Buzzacott LLP|||
||130 Wood Street|||
||London|||
||EC2V 6DL|||
|**Bankers**|Barclays Bank plc|||
||8/12 Church Street|||
||Walton on Thames|||
||Surrey|||
||KT12 2QX|||
|**Investment managers**|J M Finn & Co|||
||4 Coleman Street|||
||London|||
||EC2R 5TA|||
|**Company registration number**|12192 (England and|Wales)||
|**Charity registration number**|312774|||
The Royal School of Needlework **1**
Year to 31 August 2020
This report covers the period 1 September 2019 to 31 August 2020. It can, without doubt, be considered a year of two halves. The year began with a visit from our Patron, HRH The Duchess of Cornwall, to open the exhibition _Figures and Faces in Embroidery_ and see the blackwork portrait of herself created by the RSN Studio team. It continued to March with good class numbers for the Certificate and Diploma programme (C&D), strong engagement from our Future Tutor and Degree students and the launch of the second US Summer School, scheduled for July 2020. Then, came COVID-19 and lockdown. The RSN went from delivering all classes face to face, to temporarily closing short courses and C&D programmes. Future Tutor and Degree students were sent home with as many materials as they could carry and within two days all classes and tutorials went online.
The teaching team reacted with immense speed to put information online and to set up online teaching, which is much more challenging for practical teaching than it is for the delivery of lectures.
The fastest adoption of online learning was by the Future Tutors as the focus of their teaching is on technical tuition on the different techniques. The actions that were taken by the Future Tutor team to realise online teaching were ones from which the whole organisation was able to learn.
The Degree students had completed most of their technical tuition for the year and were moving on to the project units, so were slightly better placed. They worked mostly through tutorials, with technical back up and support online. The decision was taken to extend the hand-in dates and maintain all the pastoral support the RSN offers throughout this period, as the students coped not just with their work but also with being away from friends, and in some cases the challenge of finding a peaceful space to study at home.
In particular, we were pleased that we had made the recent investment in IT. Without the work that had already been put in place and the drive and energy of the IT Manager, setting up Zoom and Teams, the RSN would not have been in a position to move forward as quickly as it did.
Meanwhile, all other staff also moved off site, setting up offices at home. For the Education team, the main focus was to look at establishing the future offering of the RSN, especially with regards to short courses and C&D which are the main income generating courses. Working with available Tutors, they pioneered online tuition for both short classes and C&D. Never afraid of a challenge, the first online group tuition was with three students in Australia.
For day classes everything changed, not just the planned programme but it was realised that online we could offer classes at different times of the day and evening and even offer classes on repeat occasions. This is potentially transformative.
Notwithstanding these pioneering activities, the RSN experienced a significant reduction in income, so it and initially 11 administrative staff and all eligible tutors and studio stitchers were put on this scheme. The only department that remained fully staffed was the Degree.
The Royal School of Needlework **2**
## Year to 31 August 2020
I would particularly like to thank the RSN Friends and supporters who rallied to help when the Chief Executive sent out an emergency appeal in April. They donated over £70K through direct donations, converting class payments to donations, buying goods in the shop and becoming RSN Friends which really helped to stabilise the situation at the most critical time.
The other vital department at this time was the RSN Shop as people sought things to do with their spare time. The online shop did strong business through the rest of the year and reached the end of the year ahead of budget.
The RSN Council members met regularly during this period, supplementing the diarised meetings with regular Zoom calls, sometimes weekly, to examine cash flow and also to start a wider review of the Strategic Plan. Clearly, however long the direct results of the pandemic might last, there were going to be enduring changes to programme delivery which needed to be considered now, to modify the strategic plan that was only put in place a year ago.
As the lockdown continued, even with furloughing, we had to look at ongoing costs. The year was clearly going to end in a very different financial position to that which had been budgeted and looking ahead the position for 2020-21 was not going to be that dissimilar, so further action had to be taken. The main outgoings for the RSN are rent and people. While it is not currently possible to reduce rent this only left people and it was decided that five roles would be made redundant, although aspects of two roles are being combined
The RSN finally returned to face-to-face teaching at the beginning of July but with social distancing this reduced class sizes from 12 students to six for the Certificate and Diploma. The only rooms which could be used for day classes, to be economically viable, were the Degree rooms so these could only be used while the degree was on vacation.
At the same time, the RSN made the most of offering activities to those with time on their hands and nowhere to travel in the summer by offering a range of online classes and this allowed us to test a number of options as to preferred timings.
By the end of the financial year, the staff team had worked incredibly hard, not simply to keep the RSN going but to forge a new future for it, where it can operate effectively both face to face and online. I would like to pay tribute to the staff who all worked long hours, especially during the early weeks of lockdown, to support students and keep people informed. The speed and content of communication was enhanced especially for newsletters and social media, staff experimented with new ways of working and above all were incredibly flexible with their time and willingness to learn and embrace new ways of working. As a result, the RSN is still here and has a potentially stronger future.
Andrew Palmer Chairman
The Royal School of Needlework **3**
**Report of the Council** Year to 31 August 2020
The Members of the Council (as Trustees), who are also the directors for the purposes of company law, present their annual report together with the audited consolidated financial statements of The Royal School of Needlework for the year ended 31 August 2020. The report has been prepared in accordance with the Charities Act 2011 and is also the group report of the directors for the purposes of the Companies Act 2006. The reference and administrative Introduction set out on pages 2 to 3 also form part of the report.
The financial statements have been prepared in accordance with the accounting policies on pages 37 to 42 o memorandum and articles of association, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) 2019/20.
## **ACTIVITIES AND ACHIEVEMENTS**
The Royal School of Needlework ( RSN ) exists to offer practical education in the art and techniques of hand embroidery and to create, collect, conserve, interpret and display items of hand embroidery. The income and property of the charity are to be applied solely towards the promotion of the objects.
## **COVID-19 response**
The RSN responded very speedily to the requirements of the lockdown and in moving the organisation forward to meet customer demand:
18 March Final day of face to face teaching across all programmes 23 March Degree and Future Tutors started online teaching All staff working from home 1 April 30 staff and tutors furloughed 2 April First online interviews for Future Tutor candidates 3 April Launch of RSN Postcard From Home Challenge 8 April Launch of weekly e-news as public service and keeping in touch with our supporters 9 April Emergency appeal sent out to all supporters by email 9 April C&D one to one sessions started online 10-13 April Over 200 retail orders received Easter Weekend 14 April First of a series of Tuesday Council meetings to review cashflow and actions 16 April Launch of the NHS Embroidered Heart Challenge 14 May First online day class 2 & 9 June Degree students handed in digitally for assessment
The Royal School of Needlework **4**
**Report of the Council** Year to 31 August 2020
## **ACTIVITIES AND ACHIEVEMENTS** (continued)
10 June The Chief Executive holds the first Instagram Live event
23 June Coronovirus policy was produced and approved by Council to set the framework for a return to face to face classes
30 June Launch of the eighth self-paced RSN Online Course, Next Steps: Goldwork & Silk Shading with Tutor Chrissie Juno Mann, in partnership with David and Charles, delayed by the lockdown
- 1 July eNews goes back to twice a month
- 2 July End of term for continuing Future Tutors
- 6 July Start of online teaching C&D for Australian students
- 9 July Certificate and Diploma being taught face to face at Hampton Court
- 9 July Online celebration of Degree awards
15 July Retail offered click and collect to those coming to classes
July-August Testing out different options for short classes
1-28 August Future Tutors in to complete Studio modules 28 August Graduation for Future Tutors live, with family online August-Sept Limited short classes at Hampton Court 4 Sept- 16 Assessment of pieces completed to August 2020 Oct
The initial impact was devastating but the reduced-size staff team, especially in the early days of the first lockdown, made a heroic effort to ensure that the RSN survived. Swift action by the staff team ensured that key programmes continued and that we learned quickly how to adapt our offerings to an online format. It was also about seeing the possibilities for the future, potentially attracting a much more international audience. While we look forward to being able to offer more classes at Hampton Court again, we will also continue to offer online courses and other activities to meet supporter needs worldwide.
## **Financial Impact**
The immediate financial impact was in classes that we could not hold and therefore had to refund or defer the dates. As a charity we also asked people if they were willing to donate the class fees. Across Certificate and Diploma there was £108K of income for the period midMarch to August, a further £58K for short courses and £14K for private and bespoke lessons and tours. C&D is not refundable so was moved forward and on the short courses, £16K was donated. By the year end across all categories £43K had been refunded.
The Royal School of Needlework **5**
**Report of the Council** Year to 31 August 2020
## **ACTIVITIES AND ACHIEVEMENTS** (continued)
The active team took voluntary pay cuts of 20% or 10% for four months to help support the organisation. This was really appreciated by the Trustees, especially as at this time, with fewer staff available than normal, those working were putting in more hours than ever, such was the commitment of the staff team to the organisation and the students.
Online courses were charged at the same rate as they had been for the physical courses because, although we might not be utilising them, we were still paying for the physical classrooms.
The US Summer School had brought in over £98K but the RSN supporters had stuck with the organisation and £85K remained with the RSN for the future event.
The emergency appeal generated direct income of £69K, plus more than 35 new Friends memberships, both annual and life, and retail orders, including more than 200 orders over the Easter weekend.
Income from the online classes for short courses generated £11K between May and August. Income from C&D saw £46K recognised a mixture of carried forward and new money (April to August).
Cash flow was the most critical issue but with the help of the RSN Friends and supporters we did not have to dip into investments. As a precautionary measure, we have used the Bounce Back Loan Scheme created by the UK Government in response to COVID-19 to borrow £50,000. The loan is interest free if repaid within one year from the date the loan was drawn. We intend to repay it in full by July 2021.
## **COVID-19 summary**
At this point COVID-19 has been simultaneously galvanising, exhausting, demanding, isolating, transformative, challenging and horizon broadening. In other words, the impact has been a heap of contradictions. Physically, it has driven us apart as staff work individually from home and away from some face-to-face teaching, but it has opened a number of opportunities that we can take forward.
## **The RSN and Public Benefit**
. However, this has come to the fore more than we imagined this year during lockdown, where stitch and hand stitch especially, have become a positive and powerful contributor to mental health and wellbeing.
**NHS hearts** in response to a request from the University for the Creative Arts (UCA) to all its students, RSN student Lucy Martin, with support from Course Leader Angie Wyman, came up with the idea to support the NHS by embroidering the letters NHS in a heart. This led to extensive media coverage, promoted by the RSN, and more than 220 hearts were made and for those who made the hearts and in support of the NHS staff.
The Royal School of Needlework **6**
**Report of the Council** Year to 31 August 2020
## **ACTIVITIES AND ACHIEVEMENTS** (continued)
**Postcards from Home** was a campaign launched by the RSN during lockdown; it was for any stitchers and people new to stitch. It was based on the premise that as people were in their homes, this might be the source of inspiration for stitch or they could stitch about somewhere that meant something to them for example from their past, where they came from, their childhood bedroom. This was a longer project than NHS hearts and postcards are still being received. Those sending them in are using this campaign as a focus of both hand stitch skills and being an opportunity to think of somewhere or sometime different than lockdown.
Throughout the first lockdown period the RSN took great pains to communicate with people through all its online and social media platforms, to give a positive focus and show the variety of hand embroidery. It has featured work from our Collection, information from our history and given a platform to our graduating students on both the Degree and the Certificate and Diploma programmes as they were not able to show work physically. This was much appreciated by our followers:
_Every time I read an e mail from the RSN I am reminded how hard you are all working, and all the issues you are dealing with so ingeniously and you get my very heartfelt gratitude and admiration._ Keira a student at our Bristol satellite.
As a result of the lockdown we started offering beginners classes online starting with an embroidered rainbow class, so some people chose to take this class as a commemoration of their lockdown experience.
The RSN has also continued its role as the international centre of hand embroidery excellence by teaching students in North America, Europe and Australia as well as the UK, through the online classes. Access to the classes for those in North America, is by running them 3pm to 9pm UK time, which is 10am - 4pm Eastern Summer Time in the US. This has been particularly appreciated.
Normally, the Chief Executive lectures extensively on behalf of the RSN. Before lockdown, this included many UK locations as well as an invitation to Winterthur, Delaware USA and Japan in January when visiting RSN tutor Emi Nimura and students. The purpose of these lectures is to spread the word about the RSN and to give many more people the opportunity to understand its work and learn how they might participate. While the physical lecture has This reached over 150 people from more than 30 countries ranging from Argentina and Chile to South Korea and Japan via America, Canada, South Africa and many European countries. The impact was to make more people feel engaged with the RSN and want to be able to participate in classes in the future, whether online or in person. This has been furthered by putting online images of the works talked about from the RSN Collection which enabled our Instagram followers to talk to each other about the pieces and share their enjoyment through the stitch community.
We will be continuing this outreach through videoing and putting online a tour of the current exhibition and plan to offer this for future exhibitions so that people who cannot physically come to the exhibition can get a flavour of it.
The Royal School of Needlework **7**
**Report of the Council** Year to 31 August 2020
## **ACTIVITIES AND ACHIEVEMENTS** (continued)
**Schools programme** this was ongoing and had been extended with a new option for students to stitch their mantra as a positive word or phrase. Information about this had gone out to existing participating schools but was just about to be launched to more participants in March. This will be picked up in the new academic year as the feedback from participating schools and pupils is that it has a calming and positive effect on pupils.
Degree and Future Tutor students have participated in shows in the first half of the year to offer stitch tuition and encouragement to new stitchers. For our students it gives them confidence in their abilities as stitchers and tutors.
Initiated by the Marketing Manager, the RSN made a partnership with a venue in Islington, north London, and when the original plans had to be amended due to COVID-19, Future Tutor Co-ordinator Kelley Aldridge recorded an introductory class, with support from colleagues, which was freely open to all with a follow on free class for a smaller number. Participants in the class came from a wide area: as far afield as Northumbria.
health and wellbeing in these challenging times.
## **Degree**
This year there were 56 students across the three years. All year groups were working on their major projects when COVID-19 enforced lockdown. From March, all teaching went online. Most students were able to go home and communication was through Microsoft Teams. The RSN academic and technical teams worked extensively with the students through tutorials and peer sessions to encourage and support them. Materials and resources were put online, while Technical Support helped with garment construction and supplying hard-toaccess threads and fabrics, to enable the students to keep working. The hand in deadline was put back, not least because of the delays in materials getting through, but students were kept in constant contact to keep them motivated and encouraged.
For the assessment, all students were asked to submit images of their work digitally and then, for the third years, there was an opportunity to present their work live to three reviewers so they could tell the panel about their ideas and how these had been executed. This allowed the team to see the thinking behind their projects and how they had brought them to fruition. It also gave the students an opportunity to reflect on the work and tell us of the challenges they had faced and how they overcame them.
The Royal School of Needlework **8**
**Report of the Council** Year to 31 August 2020
## **ACTIVITIES AND ACHIEVEMENTS** (continued)
A key part of the RSN Degree in hand embroidery, validated by UCA, is what are known as Live Projects. These are opportunities for RSN students to compete in open textile competitions, work on a particular project or meet a commercial brief. Students at all levels may get these opportunities, although they can change from year to year. This year students from all three years excelled in these opportunities and, as recommended by their tutors, the 2020 graduates have been active in following up a number of post-completion competitions, publications and exhibitions. As we say to the students, their work is not done when they submit their pieces for assessment, that is just the start and well considered and executed pieces may continue to have a life for several years after graduation for competitions or exhibitions.
Degree awards for 2019-20 included Sabina Lima (2[nd] year) runner up Bradford Textile Competition (Embroidery) and highly commended category Use of Wool. Hollie Philips, Felicity Billing, Millie Whitehead and Daisy Whitewere also highly commended for the Embroidery award. The first years entered the Worshipful Company of Glovers awards: Eliza Gomersall was runner up in the main category Function meets Fashion and Linnea Lyndo entry was selected as the most commercial glove from all entrants across the competition. More than that, the RSN was awarded the prestigious Silver Salver for the Institution which has contributed most to the competition. Second years also participated in a project with Chinese female shoe brand Sheme. Originally the company were going to select two shoes to make into prototypes and potentially market. After the inevitable delay of lockdown, the company finally selected four shoes by Sabina Linda, Millie Whitehead, Eliza Tutere and Erin Ledsom.
This year the graduating students achieved their highest ever grades, beating the achievements of students two years ago by whom they had been particularly inspired. This year there were 10 firsts and 9 upper second degrees. Far from grade inflation these were particularly talented students, a fact reinforced by the external awards and recognition that the students have been selected or shortlisted for. Each year we encourage students to participate in the Hand and Lock Prize for Embroidery, the most prestigious hand embroidery award. This year seven RSN students have been shortlisted: five Degree thirds years, one Future Tutor third year and one Degree second year.
Three 2020 graduates have had their work selected for the publication _Talking Textiles_ , entries for the book are selected by the director of Trend Union in New York, Li Edejlkoort. Each year the book features the work of graduates from around the world that she sees as leading the trends. As most of those selected are at Masters Level this is a great achievement for the three RSN students.
In this country, the Crafts Council was planning an exhibition of some of the best graduate work featuring crafts, although it has since had to go online. Three more RSN 2020 graduates have had their work selected for this show.
The Royal School of Needlework **9**
**Report of the Council** Year to 31 August 2020
## **ACTIVITIES AND ACHIEVEMENTS** (continued)
## **Future Tutors**
The Future Tutors were the pioneers of the RSN moving online in terms of practical stitch teaching. They were faced with the potentially daunting challenge of learning two of the most demanding techniques - Whitework and Silk Shading - online but they rose to the challenge. They tested out different media, settling on Zoom and WhatsApp: by harnessing the power of their smart phones and WhatsApp, students could take images of their work which the tutor could enlarge to see the stitches in great detail. Students quickly discovered there was nowhere to hide. Since then they have enhanced their technology so that the tutor can not only see the completed stitch but can now see the student making the stitch, as this is as vital to good technique as the finished stitch. Seeing how the students took to their new way of working encouraged the education department that it would be possible to offer group sessions online for both short courses and the Certificate and Diploma.
The biggest challenge, though, was for the third years as they had to miss time in the Studio. This could not be rectified until August when the five who were due to graduate came back to be taught all the remaining conservation and restoration techniques that they had not covered, as well as how to make a set of church vestments in miniature. Although not ideal, this did ensure they had covered all the core, essential techniques. They had had a number of interesting items to work on earlier in the year including the transfer and recreation of a piece for the TV programme _Salvage Hunters: the Restorers_ . Finally the five graduated at the end of August, watched by family and friends online.
The third years had, however, been able to work on their signature projects. This project has a very open brief, students can do anything they want, and ideally combining techniques but in this case they were also, for the first time, to meet the brief for the Hand and Lock Prize for Embroidery. The five projects were very different and they submitted images for the Prize for Embroidery, from those, one Future Tutor has been shortlisted for the main award for Textile Art and an ancillary award.
## **Education**
The Certificate and Diploma course is the lifeblood of the RSN. It is a specialist course but taught part time so that it can be open to many. The RSN offers the course at its base in Hampton Court Palace , in four UK satellites, in Japan, and twice a year in America. Up to mid-March the programme was performing well. We were often teaching to a full class seven days a week at HCP and to good numbers in all our satellites. Starting with Japan, this stopped with the arrival of COVID-19. Initially we had to stop the programme completely. Then we looked at how we could offer aspects of it online but from survey results there seemed to be an aversion to this from UK and US students. The only ones who jumped at the online opportunity were our Australian and Far Eastern students.
Nevertheless, we pioneered a number of options with available tutors who were willing to try online teaching and paired them, initially with individual students to see how it would work. Early feedback from tutors and students was positive so we tried a number of different formats with the aim being to work back to the one tutor to six students model that we have in the classroom.
The Royal School of Needlework **10**
**Report of the Council** Year to 31 August 2020
## **ACTIVITIES AND ACHIEVEMENTS** (continued)
It was not until July that the RSN could re-open its teaching centre at HCP. However, after initial reluctance, when students saw what we had put in place for them they were keen to return. Albeit, that with social distancing we could only accommodate half the students we had previously and only on four days a week over the summer. So, as a result of this, one of the major areas of reduced income is through the Certificate and Diploma. With all the issues there were also no assessments after December 2019, no end of year show and no awards this year.
Looking ahead, we are aware that there is a group of people who want to study for the Certificate but they live too far away from any of our sites. They want to take the programme totally online. However, to start the programme online needs more consideration so that we set people up with a good understanding of what is needed from the beginning. This was being developed in the autumn with the aim of opening this opportunity in 2021.
We also had to close all our day classes from March, which was unfortunate as it is the second half of the year when we can normally hold the longer classes. However, we began looking at what might be possible working with tutors who had experience online. Finally, we offered our first online short course with Future Tutor Sarah de Rousset Hall whose motif was a rainbow. This went well but our North American supporters wanted to participate too. We then realised that with a change to the teaching time, we could offer classes to reach the east coast of the US. Through July and August, we offered a series of classes in drawing and stitch, experimenting with different times of day and different lengths of course, two and three-hour sessions, evenings as well as days. It was realised that potentially this could be very liberating for the range of classes that we could offer.
The take up of both C&D and short courses in the last two months of the year really helped contribute to a better end of year position than had been forecast. Many supporters also commented on how quickly and effectively the RSN had taken on board working in a different way. However, there was just one unforeseen aspect and that was the need to send out kits to people for the start of classes. After the first couple of months of lockdown UK postal services eased a bit and returned to a near normal service. The same could not be said of some international countries and we had to post as early as possible to get kits to their destination in time.
## **Short courses, bespoke classes, tours and partnerships**
For this department, COVID-19 really wrecked what had been a promising year. We had the largest number of bespoke groups booked in for classes and tours in the summer. We had a growing range of partnerships including the Fashion and Textile Museum, V&A, Bath Fashion Museum and the D Day Story in Portsmouth, and were looking to add more partner organisations where there is a link to stitch and RSN tutors could offer classes. There was also a new exhibition planned, Stitch is international, which could not be held as we cannot know when we could next have visitors in the Studio. As with everything else, all these were cancelled and the responsible staff member put on furlough.
The plan for the future will be to hold special events like talks online to generate income and reach new people as well as regular visitors.
The Royal School of Needlework **11**
**Report of the Council** Year to 31 August 2020
## **ACTIVITIES AND ACHIEVEMENTS** (continued)
## **Studio**
In the first half of the year the RSN held the exhibition _Faces and Figures in Embroidery_ which was launched by the RSN Patron HRH The Duchess of Cornwall, who specifically came to see the portrait of herself in blackwork that had been created by the RSN Studio. The working of the face had been videoed using the time-lapse process so it showed in just a few minutes the work of two days, this had then been put on YouTube. When Her Royal Highness arrived she immediately recognised the RSN Studio member whom she had seen on film and thanked her for her work.
This began as a quiet year working on small pieces in the Studio. The stand out piece was for the television programme _Salvage Hunters: The Restorers_ where the RSN studio transferred and brought back to life some 19[th] century embroidery and then added new elements. When finished the owner could not work out which were the new elements and which the old.
With lockdown the Studio had to close, however, the enforced time at home clearly led to many people tidying cupboards as the Studio has seen a surge of interest, with enquiries coming through the lockdown period and a steady flow of enquiries since the summer.
## **Marketing**
Marketing plays a vital role in maintaining and building our audience. It was a busy first half of the year promoting the usual events and activities, with more and more activity moving to social media. However, when lockdown began, we initially had little to market except the retail offering, so instead the communications were much more about keeping our audience engaged and entertained especially while people were somewhat scared and overwhelmed by the pandemic.
We had to cut the marketing budget but the Head of Marketing,, used all the social media platforms she could to ensure that far from being forgotten, the RSN was seen as dynamic, proactive, engaged and offering positive messages and actions. During the lockdown period we held a competition for our 30,000[th] follower on Instagram; this was achieved within hours and at the year-end there were over 34,000 followers.
Marketing was particularly involved in Postcards from Home and the NHS hearts mentioned in the Public Benefit section. The eNews is normally a monthly newsletter of activities and a half monthly class availability schedule, for the first weeks of the pandemic it was transformed into a weekly communication. It talked about the RSN history, archive, Collection and our plans, again to inform and entertain people during the bleak period and it really fulfilled our public benefit role, as a positive public service.
The Royal School of Needlework **12**
**Report of the Council** Year to 31 August 2020
## **ACTIVITIES AND ACHIEVEMENTS** (continued)
## **Collection and Archive**
During the first half of the year there were a number of queries about the Archive but these picked up during lockdown as people had time to research their ancestors, so the most asked question did my (relative) train/work at the RSN? has been asked several times a week. In most cases we cannot answer this as we do not have the capacity and working from home means there is not access to the archive. However, we did make use of the lockdown to tell people more about the history of the RSN and what is in the archive through the eNews. We particularly featured the photographs and some of the stories behind them.
It is planned that the Collection and Archive will be used for talks online in the future, to help show people what we have.
## **Retail**
the beginning of lockdown the shop was busy with orders, more than 200 just from the Easter Weekend. It quickly became clear that we needed more expertise and both the retail manager and assistant began working on site. This was particularly necessary in terms of keeping stock ordered in time to meet demand. The team also converted Studio 2 into a mailing operation. They were particularly pleased that the Studio tables could be raised to make packing items easier.
In a normal year, online sales might only be a fraction of the total sales, this year the retail operation reached its original total, even though the second half of the year was all online.
## **Distance Learning**
The planned series of new self-paced courses with David and Charles came to an abrupt halt with lockdown and even the course filmed in February could not be launched for lack of material. It was eventually launched in June. There were reasonable sales of the kits available but again this was hampered by lack of materials at the beginning of the lockdown.
It is hoped that we can revive the planned subsequent programmes in 2021 as, even with online teaching now available, these offer more direct tuition that people can do when they have the time, rather than fitting into a schedule.
The Royal School of Needlework **13**
**Report of the Council** Year to 31 August 2020
## **ACTIVITIES AND ACHIEVEMENTS** (continued)
## **RSN Stitch Bank**
The aim of the RSN Stitch Bank is to put every stitch in the world on to a digital resource as both an instructional guide and also a source of preservation for old stitches. Work on this initiative was going well in the first half of the year with developments to the web framework and we had trained a number of tutors to photograph and video the creation of the stitches. However, this all came to an abrupt halt with the lockdown when the team were furloughed. The original launch date of the first 500 stitches by July had to be put on hold but interest in the scheme continued during lockdown, attracting additional support which reinforced to us how important this initiative is. The project will be taken up again in the next financial year with the aim of launching in spring 2021 even if with fewer stitches than was originally anticipated.
## **IT**
When we first went into lockdown, so much had to happen in such a short time almost all of which was focused on or through IT. All the things that we had worked on over the last three years really came to fruition at this point in making the enforced transition much smoother than it would otherwise have been.
Not that everything was plain sailing. It became expected that every time we wanted to do something new, like offer a class at a different time of day, the IT needed to be tweaked to accommodate the change. For the longer term it is helping us to determine what needs to be part of a bigger change on the system and just how far it will meet our needs.
Our IT manager has shown immense versatility in encouraging the system to work in different ways so that we can offer things like discounts and special offers that were not previously part of what we did, but all of which have paid off for us whether in income generated or elements of learning.
## **Friends**
During the COVID-19 outbreak and the lockdown, the RSN Friends have been the most tremendous help to the RSN. They have supported the fundraising, they have bought items in the shop, they have tried out the online classes and they have sent messages of support and encouragement. Some former Friends even came back into the Friends this year. The RSN is extremely grateful to the Friends for this support and encouragement.
## **Staffing**
A great deal of what has been achieved in the second half of the year has been achieved with a much smaller team than usual. Only the degree kept all its staffing during lockdown, elsewhere people doubled and tripled their roles and made the best out of the challenging situation, putting in many hours to ensure we would survive. New skills were acquired including working from home adjustments and preparing rooms for the new normal. Perhaps the staff member who had most challenge was interim Finance Director Elaine Ogle who was
The Royal School of Needlework **14**
**Report of the Council** Year to 31 August 2020
## **ACTIVITIES AND ACHIEVEMENTS** (continued)
The RSN has supported staff working from home with additional equipment to make them as effective as possible and the weekly team meeting of staff became a very important event as it brought most of the staff together. In addition, the Chief Executive decided to send out a weekly letter to all who were furloughed from the beginning of April. Initially, this was just for those furloughed but in the end was sent to everyone, furloughed and active, so all were kept informed and knew what had been happening. It is still sent out every Friday night. Following enquiry with recipients, this will be continued into the next academic year because although we now have more of the team back working, the limited on site access still means that many of the team are working individually so the regular updates keep everyone informed.
However, with a significantly reduced income we had to look at more drastic ways to cut costs. As the largest percentage of the RSN outgoings is on staff, we had few options but to look at reducing costs here. In the end, we had to make five roles/four people redundant, but have brought in one person to take on a combined role to support the Head of Education and Teaching.
During the first lockdown the Council took a pro-active approach to managing risk with sometimes weekly Zoom meetings to review the most urgent issues, usually around cash flow.
## **Fundraising declaration**
The RSN has to earn or raise its income. Earned income comes from the courses it runs as part of its charitable mission. Funds are raised to support core programmes like the Future Tutors and bursaries for students on the Degree and Future Tutors and also to support new initiatives such as the RSN Stitch Bank and the digitisation of the RSN Collection and Archive. Usually these funds are raised primarily from charitable trusts and livery companies. This year, when earning income became more difficult, we looked to fundraise from Friends and supporters for our emergency appeal. Recipients could choose a number of ways to support the RSN: through a direct donation, by becoming or returning to being a Friend, by purchasing items from our shop or by becoming a subscriber to the RSN Stitch Bank.
The RSN complies with the fundraising code and complies with the GDPR requests of anyone who asks not to receive fundraising requests. This year, supporters and Friends were only specifically given this one request for support and they had a range of options as to how they could help. The RSN has received just one fundraising complaint this year following this mailing, from an international person who did not at the time realise that the RSN is a charity. Once explained this was rescinded.
Donors this year have included livery companies including the Broderers, Dyers, Girdlers, Gold and Silver Wyre Drawers, Haberdashers and Needlemakers as well as charitable trusts such as the Barbara Whatmore Foundation, the Weinstock Foundation, the Coats Foundation Trust and others which wish to remain anonymous. We also received many donations from our Friends and supporters from the UK, the US and elsewhere. The largest individual gift was for £30,000 for our emergency support from an RSN Life Friend.
The RSN is extremely grateful for all this help and support this year.
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**Report of the Council** Year to 31 August 2020
## **ACTIVITIES AND ACHIEVEMENTS** (continued)
## **Review of overall performance**
In the light of COVID-19, the RSN has managed remarkably well thanks to the swift action of Trustees and staff. Collectively, we made things happen at a speed that would not have been imagined just a few months before. The transition from face to face to online teaching was fast and we have learned from this for ongoing teaching. In terms of income generation while we could not physically make up for the months lost to the lockdown, we worked very hard to be able to offer courses online and to rebuild all our operations so that we continued to generate income. As a result, the financial picture was nowhere near as bad as it could have been.
The active staff team (those members of staff not on furlough) worked incredibly hard to keep awareness and momentum and this has paid off with a broader online presence and greater engagement with our activities, which can only augur well for the future.
The Trustees acknowledge and thank the staff team for their commitment and dedication over this year. It has been an extraordinary year.
## **FUTURE DEVELOPMENTS**
## **The Year Ahead**
During the year, the Trustees and senior staff have looked at the way forward, taking the opportunity to revise and update the strategic plan in the light of COVID-19. While in some ways COVID-19 has, of course, slowed us down and changed many plans, it has given us new opportunities that we need to capitalise on. In looking at the strategic plan, we have enhanced even further the role of IT, factored in online tuition for the long term, and focused the goals of the business plan to be more specific in the short term. As such, we might summarise the overarching themes for the next four years as 2020-21 stabilise, 2021-22 rebuild, 2022-23 celebrate (our 150th anniversary), 2023-24 growth.
While not forgetting the short term, the staff team is looking ahead to the anniversary year which actually straddles two financial years, as our opportunity to really use it as an effective launch pad for the future of the RSN.
## **FINANCIAL REVIEW**
## **Financial report for the year**
The consolidated statement of financial activities for the year shows a net deficit (before investment losses) of £121,680 (2018/19: surplus of £142,916).
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**Report of the Council** Year to 31 August 2020
## **FINANCIAL REVIEW** (continued)
The overall income for the year 2019/20 amounted to £1,984,354 (2018/19: £2,357,491), a year on year decrease of 16%. Income from donations and legacies increased by 5% to £475,858 (2018/19: £454,451). In 2019/20 this includes £187,659 of grant income from the Government Job Retention Scheme. In 2018/19 a donation of £250,000 was received from the HB Allen Charitable Trust upon their closure. Donations and legacies remain an extremely important source of income, particularly for the Degree and Future Tutor programmes, neither of which receives any government funding, and for all new initiatives.
The trading subsidiary income of £278,555 (2018/19: £352,549) decreased by 21% as the Studio was closed from the end of March due to lockdown.
Income from charitable School activities amounted to £1,059,988 (2018/19: £1,377,207) a 23% decrease year on year due to reduced activity in Certificate & Diploma and short courses from the end of March. Whilst online courses replaced face-to-face classes, the volume of sales was not enough to equal that delivered in 2018/19. Investment income of £169,953 (2018/19: £173,284) also decreased marginally.
The restricted fund income of £120,622 (2018/19: £152,584) consisted of resources earmarked for the Degree and Future Tutor programmes, the RSN Stitch Bank and Collection and Archive Digitisation Campaigns. The decrease compared with last year is mainly due to appeals to Friends being focused on unrestricted donations following the COVID-19 pandemic. Restricted expenditure of £180,204 (2018/19: £234,689) was incurred against the Degree and Future Tutor programmes, for the RSN Stitch Bank project and also the ongoing depreciation on the capital costs of the set-up of the new classrooms at Hampton Court Palace in 2015.
Total expenditure for the year of was £2,106,034, 5% less than the previous year (2018/19: £2,214,575). The RSN reduced all non-essential expenditure following lockdown.
Net realised and unrealised losses on investments for the year amounted to £22,433 (2018/19: £146,237 gains). At the balance sheet date, net assets totalled £5,300,695 (2019: £5,444,778) of which £2,158,779 (2019: £2,223,252) are unrestricted.
The Royal School of Needlework has an investment of £100 (2018/19: £100) in the share capital of RSN Enterprises Limited, a wholly owned company which is incorporated in England and Wales. The net trading income of the company for the year amounted to a deficit of £25,733 (2018/19: deficit of £11,332).
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**Report of the Council** Year to 31 August 2020
## **FINANCIAL REVIEW** (continued)
## **Reserves policy and financial position**
The Council has examined the requirements for free reserves, i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed. of a significant proportion of income, the level of free reserves should remain unchanged from eted expenditure levels for 2020/21, the maximum expenditure for five consecutive months would be in the region of £1,088,000. The Council is of the opinion that this provides sufficient flexibility to cover temporary shortfalls in incoming resources due to timing differences in income flows, adequate working capital to cover core costs and will allow the charity to cope with and respond to unforeseen emergencies whilst specific action plans are implemented.
The charity has total reserves of £5,300,695 (2019: £5,444,778). This includes endowment funds and restricted funds of £2,808,801 (2019: £2,828,428) and £328,295 (2019: £388,308) respectively and designated funds of £610,000 (2019: £610,000). After deducting funds free reserves at 31 August 2020 of £1,505,472 (2019: £1,588,618). There is currently an excess of free reserves over the target level of £1,088,000. Given the current economic uncertainty, the Council is of the opinion that the level of free reserves held is prudent at this time.
The Council has continued to formally designate £610,000 towards the planned developments within the strategic plan (2019: £610,000). The Council will review this designation on an ongoing basis. The funds that are designated are for future strategic projects, including the ongoing RSN Stitch Bank project and digitisation of the archive.
## **Investment policy**
Under the Memorandum and Articles of Association, The Royal School of Needlework has the power to make any investments, which the Council sees fit. The Finance and Investment Committee keeps a close eye on investments and returns to ensure maximum benefit for the RSN and meetings are held regularly with the investment managers to ensure that the balance of the portfolio remains appropriate particularly given political uncertainties and the ongoing potential for market volatility.
The tenor of the investment policy remains to maintain the real value of the RSN funds through continued growth of the asset base, seeking to achieve this with an appropriate balance between sustained cash flow and capital growth, to generate over the long term, defined as a period of not less than five years, a total return on capital invested that reflects the risk appetite.
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**Report of the Council** Year to 31 August 2020
## **Investment policy (continued)**
During the year, the Council also considered and reaffirmed its risk appetite for the investments, which has been mandated as medium. Markets continued to recover from the 23 March lows, and so by August 2020 the investment portfolio had risen to £5,338,754 this representing a gain of +4.3% in total return terms over the past quarter and +2.0% of unrealised gains over the past year (returns are net of fees). To that end, while the value of the investment portfolio had fallen back with the markets earlier in the year, it had re investment portfolio has been limited, if not negligible. Indeed, at 31 August 2020 the investment portfolio had a 9 year annualised return of +7.9% per annum (total return, net of fees).
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Constitution**
The Royal School of Needlework was founded in 1872 and incorporated in England and Wales licence of the then Board of Trade. The RSN is also registered as a charity with the Charity Commission, under the number 312774.
Normally, on appointment, Council members are provided with the Charity Commission with senior managers and their teams learning about the work of each team, and are provided with copies of the annual report, strategic plan and campaign presentation.
This year the first appointment was able to follow the usual route but the induction for the later appointments was all online, although one was able to visit the RSN and see people face to face in the summer. Council members have been provided with Charity Commission guidance on fundraising regulations. Council members are informed of training courses run by our advisors, which they may attend.
## **Organisational Structure and Key Management**
The key management personnel of the RSN in charge of directing and controlling, running and operating the charity comprise the Council and the Chief Executive, Dr Susan KayWilliams. The Chief Executive is supported in day-to-day operations by a small senior management team and other staff. The RSN is a small organisation with at most only three levels of hierarchy but in practice, much of it operates at a more hands-on level.
The salary of the Chief Executive is set by the Council. The salaries of all staff are considered annually by the Finance and Investment Committee and approved by the Council.
As at 31 August 2020, the RSN employed seven full time and 17 part-time management and administrative staff and core teams of eight part time stitchers in the Studio and 21 part time tutors of whom two full time, six part time, six stitchers and 16 tutors were on furlough or flexible furlough. In addition, there are around 20 volunteers who in normal times assist with the library, Studio Talk and Tours, marketing and data entry, but since lockdown only three have been able to assist.
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**Report of the Council** Year to 31 August 2020
## **Trading subsidiary**
The RSN has a wholly owned trading subsidiary RSN Enterprises Limited, a company incorporated in England and Wales with a share capital of £100. The principal activity of the company is that of undertaking the commercial and retail activities of The Royal School of Needlework. The company comprises the RSN Studio, which undertakes commissions for individuals and public bodies and a retail outlet within the premises of The Royal School of Needlework. The retail outlet also offers products for sale via its website.
All taxable profits of the trading subsidiary are donated to the School under the Gift Aid scheme. During the year the company made a loss of £25,733 (2018/19: loss of £11,332).
This report is approved by the Council on 23 February 2021 and signed on its behalf by:
Andrew Palmer **Chairman**
Susan Kay-Williams **Chief Executive**
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## **Statement of Corporate Governance and Internal Control** Year to 31 August 2020
The following statement is provided to enable readers of the annual report and financial statements of the Royal School of Needlework to obtain a better understanding of its governance and legal structure. The statement covers the period from 1 September 2019 to 31 August 2020 and up to the date of the approval of the annual report and financial statements.
The Royal School of Needlework endeavours to conducts its business;
1. Having due regard to the UK Corporate Governance Code 2018 in so far as it is applicable to the Higher Education Sector.
2. Complying with Office for Students on-going conditions or regulations and terms of conditions of funding as well as other regulatory responsibilities.
We have adopted the UK Corporate Governance Code. We have reported on our Corporate Governance arrangements by drawing upon best practice available, including those aspects of the UK Corporate Governance Code that we consider relevant to the Higher Education Sector.
The Trustees recognise that, as a body entrusted with both public and private funds, it has a particular duty to observe the highest standards of corporate governance at all times.
## **Legal Status**
The Royal School of Needlework is a registered charity and a private company limited by shares. The trustees are the shareholders and their liability is limited to the value of shares held.
The Trustees, who are also Council Members and referred to as both in this report, confirm ce on public benefit and that the required statement appears elsewhere within these financial statements.
## **Council and Trustees**
The governing body of the RSN is the Council. This comprises the Chairman, Honorary Treasurer and up to 12 ordinary members.
Members of the Council (who are also Trustees of The Royal School of Needlework for the purposes of charity law) who served during the year and up to the date of this report were:
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**Statement of Corporate Governance and Internal Control** Year to 31 August 2020
**Council members (Directors) Appointed / Retired** Mr Andrew Palmer (Chairman)* Mrs Elizabeth Braakenburg Dyce Ms Nicola Clarke* Prof Patsy Cullen Appointed 23 June 2020 Mrs Caroline De Guitaut Ms Victoria Farrow Appointed 23 June 2020 Mrs Morgan Fowles Miss Samantha Hoe-Richardson (Honorary Treasurer)* Ms Deborah Lamb Prof John Miles Retired 17 February 2020 Ms Reena Pastakia Appointed 17 February 2020 Mrs Sharan Wicks Retired 18 December 2019 Mrs Stephanie Wright*
* indicates members of the Finance and Investment Committee, which met five times during the year under the chairmanship of the Honorary Treasurer.
In addition to the Council there is one committee which reports to the Council:
The Finance and Investment Committee, usually meets four times a year and ensures that the finances of the RSN are well managed and accurately reported, and that the investments are handled in accordance with the agreed risk appetite.
In response to the impact of COVID-19, in addition to the planned meetings, the Trustees met online on a number of Tuesday evenings especially through April to June and an extra Finance and Investment Committee was added in July. The planned Council meeting was moved to the end of August to give additional time for the preparation and discussion of budgets for 2020-21.
During the year working parties comprising Trustees and staff have looked at the RSN Strategic Plan and at the potential exhibition at the Fashion and Textile Museum in 2022.
The Board of Trustees are shown above and except for any instance mentioned above have served throughout the year.
All Council Members at 31 August 2020 held one £10 share (2019: one £10 share) in the capital of the charitable company.
The Finance Director maintains a register of financial and personal interest of the members of the Council. This can be obtained by contacting office (see page 1).
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## **Statement of Corporate Governance and Internal Control** Year to 31 August 2020
## **Statement of the Council s responsibilities**
The Council Members (who are also directors of The Royal School of Needlework for the purposes of company law) are responsible for preparing the report of the Council and financial statements in accordance with applicable law and United Kingdom Accounting Standards (UK Generally Accepted Accounting Practice).
Company law requires the Council to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and the group and of the income and expenditure of the group for that period. In preparing these financial statements, the Council is required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable United Kingdom 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 charity will continue in operation.
The Council is responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the Charities Act 2011. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Each of the Council Members confirms that:
- so far as the Council Member is aware, there is no relevant audit information of which the charitable company is unaware; and
- the Council Member has taken all the steps that he/she ought to have taken as a trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
The Council is responsible for the maintenance and integrity of the corporate and financial information included on the charitable compan ation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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## **Statement of Corporate Governance and Internal Control** Year to 31 August 2020
## **Meeting Procedures**
Formal agendas, papers and reports are supplied to the Board of Trustees in a timely manner, prior to Council meetings. Briefings are also provided on an ad hoc basis. Reports include overall financial performance of the organisation together with other information such as performance against funding targets, proposed capital expenditure, quality matters and personnel related matters such as health and safety issues. The Council met formally 6 times in 2019/20.
The Royal School of Needlework has a strong and independent non-executive element and no individual or group dominates its decision-making process. The organisation considers that each of its non-executive members is independent of management and free from any business or other relationship which could materially interfere with exercise of their independent judgement.
There is a clear division of responsibility in that the roles of the Chairman and Accounting Officer are separate.
## **Appointment to Council**
Council members serve a term of three years and may serve a second term of three years before retirement.
Approximately biennially, the Council members undertake a skills analysis, the Chairman and the Chief Executive review the skills available, the likely retirement dates of Council members and the future needs of the charity in order to start searching for new potential Council members. As a result of that and the resignation of the academic Trustee, the Chief Executive and Chairman undertook the search for additional Trustees during 2019-20 and three appointments were made including a new academic Trustee. We are grateful for the support of Ian Lazarus and colleagues of SaintyHird in helping us to identify potential Trustees.
## **Council Performance**
The Council has made a strong contribution to the improvements made in 2019/20 through the setting of challenging targets with regular scrutiny of performance. There is strong performance management at Council meetings. The Council provides robust scrutiny and challenge. Trustees are pro-active in their oversight of the organisation and are involved in the planning and discharging of Council business.
## **Committees**
## **Finance and Investment Committee**
The Finance and Investment Committee is responsible to the Council of Trustees in discharging its responsibilities for monitoring the integrity of the financial statements, the effectiveness of financial controls with regard to internal risk assessment, the performance and objectivity of external auditors and the performance of investments.
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## **Statement of Corporate Governance and Internal Control** Year to 31 August 2020
## **Finance and Investment Committee** (continued)
The Committee is responsible for the following:
- To appoint external auditors and agree the audit fee, meet with the external auditors to discuss the scope and nature of the audit and to discuss the findings included within the management letter and management responses.
- To take the lead in reviewing the financial risks, aiming to minimise and mitigate any that appear or will potentially impact the charity and that are within its power to affect.
- To satisfy itself that satisfactory arrangements are in place to investments and to monitor their performance
## **Internal Control**
## _**Scope of responsibility**_
The Council is ultimately responsible for the organisation s system of internal control and for reviewing its effectiveness. However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.
The Council has delegated the day-to-day responsibility to the Chief Executive, as Accounting Officer, for maintaining a sound system of internal control that supports the achievement of the organisation s policies, aims and objectives, whilst safeguarding the public funds and assets. The Chief Executive is also responsible for reporting to the Council any material weaknesses or breakdowns in internal control.
## _**The purpose of the system of internal control**_
The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure and can only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of organisation policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place at the organisation for the year ended 31 August 2020 and up to the date of approval of the annual report and financial statements.
## _**Risk management**_
The Council and senior managers have reviewed the principal financial, reputational, operational and governance risks that might impact on the organisation during the year, especially in the light of Covid and its impact and updated the risk register accordingly. The review enables the RSN to reflect upon the impact of both internal and external changes and the longer-term impact they may have, ensuring that mitigation is updated to respond to the changes. While known risks can be mitigated there will always be unanticipated events of which COVID has been an unwelcome example.
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## **Statement of Corporate Governance and Internal Control** Year to 31 August 2020
## _**Risk management**_ (continued)
The Finance and Investment Committee continues to take the lead in reviewing the financial risks, aiming to minimise and mitigate any that appear or will potentially impact the charity and that are within its power to affect.
The Cou appropriate in minimising any risks to its funds.
The top four have been identified as:
1. Cashflow a very robust approach was taken from the start of the original lockdown, which involved halting all expenditure, asking people if they would donate class fees or at least leave them with us for a future class and an appeal for funds for immediate use. This combined approach really helped in the early days. Since then we have re-opened Certificate and Diploma teaching in person as well as online and offered a wide range of online short classes to bring in new funds. We will also be planning an online Summer School in 2021 to meet the needs of students and generate new income. This continues to be monitored on a regular basis.
2. Students not wishing to participate unless in person, not willing to go online. While the initial response was slow, once students saw what measures had been put in place, and shared that with colleagues we have had a positive response from students to attending classes of the Certificate and Diploma in person at Hampton Court and later at our satellites. While we are still persuading some Certificate and Diploma students to attend online, we are making up for some of this with our short course online offerings where we have reached new audiences, been able to run longer courses and at different times of the day.
3. IT systems with the move to so much online, the need for robust IT systems is even more important. Staff have learned quickly about methods of online delivery and our IT manager has been reviewing many of our systems to upgrade in an ongoing way. We will be looking at the needs of the organisation going forward so that IT is enhanced and kept updated in the short term, with a wider review of future needs in the medium term
4. Challenges of running the degree programme because many of our students live in shared accommodation and need to use public transport to get here, this is the most challenging group. We have effective measures in place to keep all the three year groups in bubbles, to limit the number of days the students have to come in and giving them the freedom to work from home. We are even accommodating students who have stayed away this term in order to better manage their health and time and yet still play a full role in the course.
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## **Statement of Corporate Governance and Internal Control** Year to 31 August 2020
## **Review of effectiveness**
As the Accounting Officer, the Chief Executive has responsibility for reviewing the effectiveness of the system of internal control. The Chief Executive review of the effectiveness of the system of internal control is informed by:
the work of the external auditors;
- the work of the senior managers within the organisation who have responsibility for the development and maintenance of the internal control framework; and
- their management letters and other reports.
There are no significant internal control weaknesses reported for the period.
The senior management team receives reports setting out key performance and risk indicators and considers possible control issues brought to their attention by early warning mechanisms, which are embedded within the departments. The senior management team and the Finance and Investment Committee also receive regular reports, which include recommendations for improvement. The Council agenda includes a regular item for consideration of risk and control and receives reports thereon from the senior management team and the Finance and Investment Committee. The emphasis is on obtaining the relevant degree of assurance and not merely reporting by exception. At its December 2020 meeting, the Board of Trustees, carried out the annual assessment for the year ended 31 August 2020 by considering documentation from the senior management team, and taking account of events since 31 August 2019.
Based on above and reports by the Chief Executive, the Council is of the opinion that the organisation has an adequate and effective framework for governance, risk management and s objectives for the year ended 31 August 2020 and it has fulfilled its statutory responsibility for "the effective and efficient use of
## **Regularity, propriety, and compliance**
The organisation has considered its responsibility to notify the Office for Students of material irregularity, impropriety and non-compliance with Office for Students terms and conditions of funding.
We confirm, on behalf of the organisation, that after due enquiry and to the best of its knowledge, the Council believes it is able to identify any material irregularity or improper use of funds by the organisation, or material non-compliance with terms and conditions of funding under the organisations financial regulations. As part of our consideration we have had due regard to our financial regulations. We confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement these will be notified to the Office for Students.
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## **Statement of Corporate Governance and Internal Control** Year to 31 August 2020
## **Going Concern**
ssessment are set out on page 38.
Approved by order of the Board of Trustees and signed on its behalf by:
Andrew Palmer Chair Date: 23 February 2021
Susan Kay-Williams Chief Executive
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Year to 31 August 2020
## **Opinion**
We have audited the financial statements of The Royal School of Needlework parent year ended 31 August 2020 which comprise the consolidated statement of financial activities, the balance sheets, the consolidated statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including andard applicable in the UK and Republic of (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the group and parent charitable company as at 31 August 2020 and of income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
have been prepared in accordance with the requirements of the Companies Act 2006;
- where applicable, funds from whatever source administered by the provider for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislation;
- where applicable, funds provided by the OfS and by Research England have been applied in accordance with the relevant terms and conditions; and
We have nothing to report in respect of the following matter in relation to which the OfS Accounts Direction 2019/20 requires us to report to you if, in our opinion:
- Statements has been materially misstated.
## **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 for the audit of the financial statements section of our report. We are independent of the parent charitable company in accordance with the ethical requirements Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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Year to 31 August 2020
## **Conclusions relating to going concern**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the financial statements is not appropriate; or
- the Council members have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the parent charitable company to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **Other information**
The Council members are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements 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 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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the report of the Council for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the report of the Council has been prepared in accordance with applicable legal requirements.
The Royal School of Needlework **30**
Year to 31 August 2020
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the report of the Council.
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 by the parent charitable company or returns adequate for our audit have not been received from branches not visited by us; or
- the charitable parent company financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit; or
- exemption from the requirement to prepare a strategic report.
## **Responsibilities of Council members**
As explained more fully in the statement of the the Council members 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 Council members 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 Council members are responsible for assessing the group and parent charitable company applicable, matters related to going concern and using the going concern basis of accounting unless the Council members either intend to liquidate the parent charitable company or to cease operations, or have no realistic alternative but to do so.
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 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.
A further description of our responsibilities for the audit of the financial statements is located report.
The Royal School of Needlework **31**
Year to 31 August 2020
## **Use of our report**
This report is made solely to the parent charitable company accordance with Chapter 3 of Part 16 of the Companies Act 2006 members, as a body, in accordance with Section 144 of the Charities Act 2011 and with regulations made under Section 154 of that Act. Our audit work has been undertaken so that we might state to the parent charitable company's members and the parent charitable 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 parent charitable company, the parent charitable company's members as a body members, as a body, for our audit work, for this report, or for the opinions we have formed.
Katharine Patel, Senior Statutory Auditor for and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL
Date: 1 March 2021
The Royal School of Needlework **32**
**Consolidated statement of financial activities (including the Income and Expenditure Account)** Year ended 31 August 2020
|**Income and expenditure**
Notes|Unrestricted
funds
£|
Restricted
funds
£|Endowment
funds
£|**2020**
**Total**
**funds**
**£**|2019
Total
funds
£|
|---|---|---|---|---|---|
|**Income from:**
Donations and legacies
1
Investments
2
Other trading activities
3
Charitable activities
. School activities
4
**Total income**
**Expenditure on:**
Raising funds
5
Charitable activities
. Costs of school activities
6
**Total expenditure**
**Net (expenditure)/income before**
**investment gains and losses**
8
Realised losses on investments
11
Unrealised gains on investments
11
**Net movement in funds**
**Reconciliation of funds:**
**Fund balances brought forward**
**at 1 September 2019**
**Fund balances carried forward**
**at 31 August 2020**|355,196
169,953
278,555
1,059,988|120,662||**475,858**
**169,953**
**278,555**
**1,059,988**|454,451
173,284
352,549
1,377,207|
||1,863,692|120,662||**1,984,354**|2,357,491|
||400,126
1,517,704|13,250
166,954|8,000|**413,376**
**1,692,658**|486,209
1,728,366|
||1,917,830|180,204|8,000|**2,106,034**|2,214,575|
||(54,138)
(62,920)
52,585|(59,542)
(2,870)
2,399|(8,000)
(70,781)
59,154|**(121,680)**
**(136,571)**
**114,138**|142,916
(64,552)
210,789|
||(64,473)
2,223,252|(60,013)
388,308|(19,627)
2,828,428|**(144,113)**
**5,439,988**|289,153
5,150,835|
||2,158,779|328,295|2,808,801|**5,295,875**|5,439,988|
The Royal School of Needlework **33**
## **Balance sheets** 31 August 2020
|Notes|**Group**|**Group**|**Charity**|**Charity**|
|---|---|---|---|---|
||**2020**
**£**|2019
£|**2020**
**£**|2019
£|
|**Fixed assets**
Tangible assets
9
Investments
11
**Current assets**
Stocks
12
Debtors
13
Cash at bank and in hand
**Creditors**: amounts falling due
within one year
14
**Net current (liabilities)/assets**
Creditors due in more than one
year
15
**Total net assets**
**Represented by:**
**Capital and reserves**
Called up share capital
16
Capital redemption reserve
17
**The funds of the charity:**
Endowment funds
18
Restricted funds
19
Unrestricted funds:
. General fund
. Designated fund
20|**43,307**
**5,338,754**|24,635
5,402,282|**43,307**
**5,338,854**|24,635
5,402,382|
||**5,382,061**|5,426,917|**5,382,161**|5,427,017|
||**71,753**
**133,595**
**417,199**|76,080
116,688
378,054|**29,474**
**197,682**
**376,711**|29,625
182,539
351,671|
||**622,547**
**(655,580)**|570,822
(552,961)|**603,867**
**(593,794)**|563,835
(528,600)|
||**(33,033)**|17,861|**10,073**|35,235|
||**(48,333)**||**(48,333)**||
||**5,300,695**|5,444,778|**5,343,901**|5,462,252|
||**260**
**4,560**|280
4,510|**260**
**4,560**|280
4,510|
||**4,820**|4,790|**4,820**|4,790|
||**2,808,801**
**328,295**
**1,548,779**
**610,000**|2,828,428
388,308
1,613,252
610,000|**2,808,801**
**328,295**
**1,591,985**
**610,000**|2,828,428
388,308
1,630,726
610,000|
||**5,295,875**|5,439,988|**5,339,081**|5,457,462|
||**5,300,695**|5,444,778|**5,343,901**|5,462,252|
> Approved by the Council of Members on 23 February 2021 and signed on its behalf by:
Andrew Palmer Chairman
Samantha Hoe-Richardson Honorary Treasurer
The Royal School of Needlework: Company Registration Number 12192
The Royal School of Needlework **34**
## **Consolidated statement of cash flows** Year to 31 August 2020
|Notes|**2020**
**£**|2019
£|
|---|---|---|
|**Cash flows from operating activities:**
Net cash (used in)/provided by operating activities
A
**Cash flows from investing activities:**
Investment income
Purchase of tangible fixed assets
Proceeds from the disposal of investments
Purchase of investments
**Net cash provided/(used in) by investing activities**
**Cash flows from financing activities:**
Repurchase of share capital
Increase in capital redemption reserve
New loan financing
**Net cash provided by financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at 1 September 2019
**Cash and cash equivalents at 31 August 2020**
B|**(193,362)**|35,205|
||**169,953**
**(28,571)**
**807,633**
**(653,932)**|173,284
(5,282)
378,231
(614,462)|
||**295,083**|(68,229)|
||**(20)**
**50**
**50,000**|(10)
10|
||**50,030**||
||**151,751**
**385,672**|(33,024)
418,696|
||**537,423**|385,672|
## **Notes to the statement of cash flows for the year to 31 August 2020**
## **A Reconciliation of net movement in funds to net cash used in operating activities**
**----- Start of picture text -----**
2020 2019
£ £
Net movement in funds (as per the statement of financial activities) (144,113) 289,153
Adjustments for:
Depreciation charge 9,899 28,398
Losses (gains) on investments 22,433 (146,237)
Investment income (169,953) (173,284)
Decrease (increase) in stocks 4,327 (11,682)
(Increase) decrease in debtors (16,907) 20,665
Increase in creditors 100,952 28,192
Net cash (used in)/provided by operating activities (193,362) 35,205
**----- End of picture text -----**
## **B Analysis of cash and cash equivalents**
|**Analysis of cash and cash equivalents**|||
|---|---|---|
||**2020**
**£**|2019
£|
|Cash at bank and in hand
Cash held by investment managers
**Total cash and cash equivalents**|**417,199**
**120,224**|378,054
7,618|
||**537,423**|385,672|
The Royal School of Needlework **35**
**Consolidated statement of cash flows** Year to 31 August 2020
## **C Reconciliation of net debt**
|**Reconciliation of net debt**||||
|---|---|---|---|
||At 1
September
2019
£|
Cash flows
£|**At 31**
**August**
**2020**
**£**
**537,425**
**(50,000)**
**487,425**|
|Cash at bank and in hand
Bank loan
**Total cash and cash equivalents**|385,672|151,753
(50,000)||
||385,672|101,753||
The Royal School of Needlework **36**
**Principal accounting policies** Year to 31 August 2020
## **General information**
The Royal School of Needlework is a company, limited by shares and is registered in England and Wales. The registered number is 12192 and the registered office is Apartment 12A, Hampton Court Palace, East Molesey, Surrey, KT8 9AU.
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.
## **Basis of preparation**
These financial statements have been prepared for the year to 31 August 2020.
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011 and the Companies Act 2006.
The charity constitutes a public benefit entity as defined by FRS 102.
The financial statements are presented in sterling and are rounded to the nearest pound.
## **Critical accounting estimates and areas of judgement**
Preparation of the financial statements requires the Council Members and management to make certain judgements and estimates.
The items in the financial statements where these judgements and estimates have been made include: stock provisions, estimating the useful economic life of tangible fixed assets and legacy recognition.
In addition to the above, the full impact following the recent emergence of the global coronavirus pandemic is still unknown. It is therefore not currently possible to evaluate all wider economy. Estimates used in the accounts, particularly with respect to the value of listed investments (see note 11) are subject to a greater degree of uncertainty and volatility.
As set out in these accounting policies Council has considered the impact of the pandemic on the charity and has concluded that although there may be some negative consequences, it is appropriate for the charity to continue to prepare its accounts on the going concern basis.
The Royal School of Needlework **37**
**Principal accounting policies** Year to 31 August 2020
## **Assessment of going concern**
The Council has assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Council has made this assessment in respect to a period of one year from the date of approval of these financial statements.
The Council has concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Council is of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The RSN currently has unrestricted reserves that are £417k in excess of the level set in its reserves policy. Cash flow is being monitored closely and since the start of the COVID-19 pandemic there has been no need to liquidate investments. The most significant areas of judgement that affect items in the financial statements are detailed above. With regard to the next accounting period, the year ending 31 August 2021, the most significant areas that affect the carrying value of the assets held by the charity are maintaining a blended model of online and in-person classes as the COVID-19 pandemic continues, the level of donations and legacies, the level of investment return and the performance of the investment markets.
## **Consolidation**
Consolidated financial statements ("group financial statements") have been prepared in respect of the charity and its wholly owned subsidiary, RSN Enterprises Limited. The results of RSN Enterprises Limited have been consolidated on a line-by-line basis.
A separate statement of financial activities for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by the Charities SORP FRS 102. The company has also taken advantage of the exemption in the Companies Act 2006 Section 408 not to present its own statement of financial activities. Net deficit of £107,750 (2018/19: £300,486 surplus) is attributable to The Royal School of Needlework.
## **Income recognition**
Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.
Income comprises donations and legacies, grants, investment income, income from trading activities and school income.
Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued when the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds or where the donation is specifically for a subsequent period, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.
In accordance with the Charities SORP FRS 102, volunteer time is not recognised.
The Royal School of Needlework **38**
**Principal accounting policies** Year to 31 August 2020
## **Income recognition** (continued)
Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity.
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
Income from school activities is accounted for on an accruals basis; where fees are received for courses commencing in the following financial period, the income is deferred to the next financial period.
## **Expenditure recognition**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:
- Expenditure on raising funds includes all expenditure associated with raising funds for the charity. This includes investment management fees, the costs of the trading subsidiary company and costs incurred in encouraging people and organisations to contribute financially to the charity.
- Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities. Such costs include the direct cost of operating the school and support costs.
## **Allocation of support and governance costs**
Support costs represent indirect charitable expenditure including governance costs. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitable working environment. Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect of its compliance with regulation and good practice.
Support costs (which are predominantly staff costs for the Chief Executive and marketing and finance teams) are apportioned between expenditure on raising funds and on charitable activities (which comprises costs of school activities) based on an estimate of the proportion of the time spent on each area. Governance costs are all included within expenditure on charitable activities (costs of school activities).
The Royal School of Needlework **39**
**Principal accounting policies** Year to 31 August 2020
## **Tangible fixed assets**
Depreciation is provided on all tangible fixed assets at the following annual rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life:
Fixtures and fittings 10% on cost Office equipment 20% on cost Leasehold improvements 10% on cost or if shorter over the remaining term of the lease
Fixtures and fittings and office equipment with a cost greater than £1,000 are capitalised.
## **Heritage assets**
The Royal School of Needlework possesses a collection of historic embroidery, the value of which has not been included in the financial statements, as the Council does not believe that the value of ascertaining their market value would be commensurate with the associated cost. Further details are disclosed in note 10 to the financial statements.
## **Investments**
Investments are included on the balance sheet at their market value at the end of the financial period. Investment income is credited to income on an accruals basis, using dates of payment for dividends and daily accruals for interest. Realised and unrealised gains and losses are credited, or debited, to the statement of financial activities in the year in which they arise.
## **Stocks**
Stocks are stated at the lower of cost and net realisable value as follows:
Materials - At purchase cost on a first-in, first-out basis - Work-in-progress, finished work At purchase cost or at cost of direct materials and and goods held for re-sale labour plus attributable overheads based on the normal level of activity
Net realisable value is based on estimated selling price less further costs expected to be incurred to completion and disposal.
## **Debtors**
Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.
## **Cash at bank and in hand**
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.
The Royal School of Needlework **40**
**Principal accounting policies** Year to 31 August 2020
## **Creditors and provisions**
Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.
## **Fund accounting**
The unrestricted general fund comprises those monies which may be used towards meeting the charitable objectives of the charity at the discretion of the Council.
The designated fund comprises monies set aside out of unrestricted funds for future projects or purposes.
The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to conditions imposed by the donor.
The endowment funds comprise permanent endowments, where the capital is held indefinitely and the income is used for prizes and training for students and expendable endowments, where both the capital and income can be used for student scholarships or the general purposes of the charity.
The Royal School of Needlework **41**
**Notes to the financial statements** Year to 31 August 2020
## **1 Donations and legacies**
**----- Start of picture text -----**
Unrestricted Restricted Endowment Total
funds funds funds 2020
2020 £ £ £ £
Donations 134,527 120,662 255,189
Legacies 33,010 33,010
Grants 187,659 187,659
Total funds 355,196 120,662 475,858
Unrestricted Restricted Endowment Total
funds funds funds 2019
2019 £ £ £ £
Donations 44,887 152,584 250,000 447,471
Legacies 6,980 6,980
Total funds 51,867 152,584 250,000 454,451
**----- End of picture text -----**
## **2 Investment income**
**----- Start of picture text -----**
Unrestricted Restricted Endowment Total
funds funds funds 2020
2020 £ £ £ £
Bank and deposit interest received 642 642
Income from listed investments 169,311 169,311
Total funds 169,953 169,953
Unrestricted Restricted Endowment Total
funds funds funds 2019
2019 £ £ £ £
Bank and deposit interest received 709 709
Income from listed investments 172,575 172,575
Total funds 173,284 173,284
**----- End of picture text -----**
## **3 Income from trading activities**
The Royal School of Needlework has a wholly owned trading subsidiary which is incorporated in England and Wales. RSN Enterprises Limited undertakes the retail activities of The Royal School of Needlework. The company will donate any taxable profits to the charity under Gift Aid. A summary of
financial statements have been filed with the Registrar of Companies.
The Royal School of Needlework **42**
## **Notes to the financial statements** Year to 31 August 2020
## **3 Income from trading activities** (continued)
RSN Enterprises Limited Statement of comprehensive income
|**Income from trading activities**(continued)
RSN Enterprises Limited
Statement of comprehensive income|||
|---|---|---|
||**Total**
**2020**
**£**|Total
2019
£|
|**Turnover**
Cost of sales
**Gross profit**
Other operating income
Administrative expenses
**Operating loss**
Gift Aid donation to The Royal School of Needlework
**Retained loss for the financial year**|**290,210**
**(225,756)**|361,645
(294,809)|
||**64,454**
**564**
**(90,751)**|66,836
564
(78,732)|
||**(25,733)**
**(25,733)**|(11,332)
(11,332)|
In the year ended 31 August 2020, turnover includes £12,219 (2019: £9,660) of income received by RSN Enterprises Limited from the charity, which is eliminated upon consolidation.
## **4 Income from school activities**
Income from school activities is wholly unrestricted and comprises mainly fees for the Degree programme, Certificate and Diploma programme, Future Tutors and Short Courses.
## **5 Expenditure on raising funds**
**----- Start of picture text -----**
Unrestricted Restricted Endowment Total
funds funds funds 2020
2020 £ £ £ £
Costs of trading subsidiary 316,507 316,507
41,703 41,703
Advertising and literature 29,255 29,255
Fundraising costs 11,222 11,717 22,939
Travelling & other costs 1,439 1,533 2,972
Total funds 400,126 13,250 413,376
Unrestricted Restricted Endowment Total
funds funds funds 2019
2019 £ £ £ £
Costs of trading subsidiary 373,541 373,541
40,062 40,062
Advertising and literature 50,659 50,659
Fundraising costs 1,365 16,876 18,241
Travelling & other costs 207 3,499 3,706
Total funds 465,834 20,375 486,209
**----- End of picture text -----**
The Royal School of Needlework **43**
**Notes to the financial statements** Year to 31 August 2020
## **6 Costs of school activities**
**----- Start of picture text -----**
Unrestricted Restricted Endowment Total
funds funds funds 2020
2020 £ £ £ £
Staff costs 1,140,888 84,517 1,225,405
Other costs 376,816 82,437 8,000 467,253
Total funds 1,517,704 166,954 8,000 1,692,658
Unrestricted Restricted Endowment Total
funds funds funds 2019
2019 £ £ £ £
Staff costs 1,113,695 103,876 1,217,571
Other costs 394,182 110,438 6,175 510,795
Total funds 1,507,877 214,314 6,175 1,728,366
**----- End of picture text -----**
## **7 Staff costs**
**----- Start of picture text -----**
2020 2019
£ £
Wages and salaries 1,240,297 1,313,907
Social security costs 84,637 81,862
Pension costs 53,475 40,090
1,378,409 1,435,859
Staff costs by function were as follows:
Cost of school activities 1,225,405 1,217,571
Cost of raising funds (fundraising and trading subsidiary) 153,004 218,288
1,378,409 1,435,859
**----- End of picture text -----**
The average monthly number of employees during the year was 54 (2019: 52) and on a full time equivalent basis was 29 (2019: 28).
Redundancy costs totalling £15,350 were incurred in the year as a result of restructuring during the COVID-19 pandemic (2019: nil). The costs were accrued at 31 August 2020 and paid in September 2020. The RSN has g about severance paym determining severance pay.
The number of employees who earned £60,000 or more (including taxable benefits but excluding ) during the year was as follows:
**----- Start of picture text -----**
2020 2019
**----- End of picture text -----**
||||**2020**|2019|
|---|---|---|---|---|
|£60,001|-|£65,000||1|
|£90,001|-|£95,000|**1**||
|£95,001|-|£100,000||1|
Pension contributions in respect of these employees were £4,333 (2019: £7,925).
The Royal School of Needlework **44**
**Notes to the financial statements** Year to 31 August 2020
## **7 Staff costs** (continued)
No Council Members received reimbursement of travelling expenses in the year (2019: none).
No remuneration was paid to the Council Members in the year (2019: none).
The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis comprise the Council and the Chief Executive. The total cost of the remuneration (including taxable benefits, employer's national insurance and pension contributions) of the key management personnel for the year was £105,537 (2019: £111,146).
## **Chief Executive Remuneration**
|**Chief Executive Remuneration**|||
|---|---|---|
|Basic salary
Bonus
Pension contribution|**2020**
**£**|2019
£|
||**86,657**
**3,750**
**4,333**|91,103
4,500
4,027|
||**94,740**|99,630|
The RSN
published by the Committee of University Chairs when determining senior staff remuneration.
The Chief Executive remuneration shown in year was considered and reviewed by the Council.
The was 2.3 (2019: 2.7)
## **8 Net (expenditure) income before investment gains and losses**
These are stated after charging:
|These are stated after charging:|||
|---|---|---|
|Depreciation
remuneration
. Charity audit
. Trading subsidiary audit
. Other services
Lease expenses
. Land and buildings|**2020**
**£**|2019
£|
||**9,898**
**8,872**
**2,705**
**2,983**
**189,224**|28,399
7,574
3,369
1,044
125,927|
|. Other|**15,260**|14,991|
The Royal School of Needlework **45**
## **Notes to the financial statements** Year to 31 August 2020
## **9 Tangible fixed assets**
|**Tangible fixed assets**||||||
|---|---|---|---|---|---|
|**Group and Charity**||Leasehold
improve-
ments
£|Office
equipment
£|Fixtures
and
fittings
£|**Total**
**£**|
|**Cost**
At 1 September 2019
Additions
At 31 August 2020
**Depreciation**
At 1 September 2019
Charge for year
At 31 August 2020
**Net book values**
At 31 August 2020
At 31 August 2019||150,509|83,129
13,871|55,686
14,700|**289,324**
**28,571**|
|||150,509|97,000|70,386|**317,895**|
|||150,509|76,544
4,972|37,636
4,927|**264,689**
**9,899**|
|||150,509|81,516|42,563|**274,588**|
||||**15,484**|**27,823**|**43,307**|
||||**6,585**|**18,050**|**24,635**|
The Royal School of Needlework **46**
**Notes to the financial statements** Year to 31 August 2020
## **10 Heritage assets**
The RSN is rich in heritage assets comprising embroidered textiles, designs, company archives, photographs and student pieces. The RSN does not generally have the funds to acquire pieces so most of the Collection has been donated. The acquisition policy relates firstly to items that have an RSN connection, then to items of a high standard of work and/or types of work not already included in the collection.
The Collection of textiles comprises objects almost all of which have been donated to the RSN and which are mostly examples of embroidery, with some examples of lace. Whilst there are a few pieces from the 16th century, most date from the 19th and 20th centuries.
They comprise many embroidery techniques from the UK and around the world. Also included are a number of pieces worked by the RSN and its students, especially from the original Diploma course, which ran from the late 19th century until 1960, which have been given back to the RSN by the families.
The Archive comprises registers, minutes and other paperwork relating to the management of the RSN, photographs and ephemera from various events. It also contains workbooks of jobs undertaken from the 1940s onwards, some with samples, and drawings. The largest holding is of designs relating to work undertaken in the Studio.
The RSN Collection and Archive is unique and though it is only minimally catalogued, researchers are given access to specific parts of the archive if it can be identified. The Collection and Archive are made available for student research and for public exhibition.
The RSN also endeavours to offer public access to the Collection through exhibitions and study days both at Hampton Court and elsewhere. Researchers wishing to access the archive can also make appointments but with the caveat that we do not have a resident archivist or curator and most parts of the archive are not catalogued, especially the designs. The most popular requests are whether a family member worked for the RSN (until the registers are digitised this will not be possible to answer), and also in relation to the work the RSN did in therapeutic stitch during the First World War.
Heritage assets have not been capitalised in the financial statements as the Council considers that embroidery would outweigh the benefits derived from such an exercise.
The Royal School of Needlework **47**
**Notes to the financial statements** Year to 31 August 2020
## **11 Investments**
|**Investments**|||
|---|---|---|
||**2020**
**£**|2019
£|
|Listed investments and cash holdings
**Group total**
Shares in subsidiary undertaking at cost
**Charity total**|**5,338,754**|5,402,282|
||**5,338,754**
**100**
**5,338,854**|5,402,282
100
5,402,382|
The charity owns the entire issued share capital of RSN Enterprises Limited which is incorporated in England and Wales. Its registered number is 3158058 and its registered address is the same as the RSN.
**----- Start of picture text -----**
2020 2019
£ £
Aggregate share capital and reserves of RSN Enterprises Limited (43,107) (17,374)
2020 2019
Listed investments & cash holdings £ £
Market value at 1 September 5,394,664 5,012,196
Additions at cost 653,932 614,462
Disposal proceeds (807,633) (378,231)
Realised losses (136,571) (64,552)
Unrealised gains 114,138 210,789
Market value at 31 August 5,218,530 5,394,664
Cash held by investment managers 120,224 7,618
5,338,754 5,402,282
**----- End of picture text -----**
Listed investments held at 31 August comprised the following:
||**2020**
**£**|2019
£|
|---|---|---|
|Fixed interest
UK equities
Overseas equities and equity funds
Other listed investments
Listed investments at cost|**857,095**
**1,805,953**
**1,302,806**
**1,252,676**|871,060
2,126,574
1,238,443
1,158,587|
||**5,218,530**|5,394,664|
||**3,595,554**|3,761,360|
## **12 Stocks**
||**Group**|**Group**|**Charity**|**Charity**|
|---|---|---|---|---|
||**2020**
**£**|2019
£|**2020**
**£**|2019
£|
|Materials
Finished work and goods held for resale|**29,474**
**42,279**|29,625
46,455|**29,474**|29,625|
||**71,753**|76,080|**29,474**|29,625|
The Royal School of Needlework **48**
**Notes to the financial statements** Year to 31 August 2020
## **13 Debtors**
**----- Start of picture text -----**
Group Charity
2020 2019 2020 2019
£ £ £ £
Trade debtors 18,619 20,723 8,400 10,870
Prepayments and accrued income 114,976 95,965 100,013 67,996
Amounts owed by subsidiary company 89,269 103,673
133,595 116,688 197,682 182,539
**----- End of picture text -----**
## **14 Creditors: amounts falling due within one year**
**----- Start of picture text -----**
Group Charity
2020 2019 2020 2019
£ £ £ £
Bank loans 1,667 1,667
Trade creditors 82,852 77,285 43,767 72,630
Other taxes and social security costs 31,964 35,724 27,563 30,286
Accruals and deferred income 539,097 439,952 520,797 425,684
655,580 552,961 593,794 528,600
**----- End of picture text -----**
## **Deferred income** (included above)
**----- Start of picture text -----**
Group Charity
2020 2019 2020 2019
£ £ £ £
Brought forward at 1 September 381,497 330,463 376,942 311,312
Deferred in the year 379,854 368,714 369,760 364,159
Released in the year (303,635) (317,680) (299,081) (298,529)
Carried forward at 31 August 457,716 381,497 447,621 376,942
**----- End of picture text -----**
Deferred income is fees received in advance of the course taking place and donations received for the following academic year.
## **15 Creditors due in more than one year**
**----- Start of picture text -----**
Group Charity
2020 2019 2020 2019
£ £ £ £
Bank loans 48,333 48,333
48,333 48,333
**----- End of picture text -----**
Included in creditors falling due in more than one year is a loan received on 3 July, 2020 under the Bounce Back Loan Scheme created by the UK Government in response to COVID-19. The loan is interest free if repaid within one year from the date the loan was drawn. The loan is due 3 July 2026 if not repaid early. Interest is accrued at 2.5% per year after the first year. The Charity intends to repay the loan in full before July 2021. If the loan is not repaid in full within the first year, 60 monthly payments of £833.33 are required.
The Royal School of Needlework **49**
**Notes to the financial statements** Year to 31 August 2020
## **15 Creditors due in more than one year** (continued)
The above loan is repayable as follows:
**----- Start of picture text -----**
Group Charity
2020 2019 2020 2019
£ £ £ £
Within one year 1,667 1,667
Within two to five years 48,333 48,333
50,000 50,000
**----- End of picture text -----**
## **16 Share capital**
|**17**||**Issued, called up and**
**fully paid**|**Issued, called up and**
**fully paid**|
|---|---|---|---|
|||**2020**
**£**|2019
£|
||Ordinaryshares of £10 each|**260**|280|
||**Capital redemption reserve**|**2020**
**£**|2019
£|
||456 Ordinary shares of £10 each (2019: 451)|**4,560**|4,510|
The Royal School of Needlework **50**
**Notes to the financial statements** Year to 31 August 2020
## **18 Endowment funds**
|**Endowment funds**||||||
|---|---|---|---|---|---|
|**2020**|At 1
September
2019
£|Income
£|Expenditure
£|Investment
losses
£|**At 31**
**August**
**2020**
**£**|
|Victoria Adams Fund
General Endowment Fund
Hilda Watson Fund
Charrington / Broderers Fund
Wendy Hogg Fund
HB Allen Fund|2,004,907
547,539
3,283
3,388
19,311
250,000||(7,250)
(750)|(8,242)
(2,251)
(13)
(14)
(79)
(1,028)|**1,989,415**
**545,288**
**3,270**
**3,374**
**18,482**
**248,972**|
||2,828,428||(8,000)|(11,627)|**2,808,801**|
|**2019**|At 1
September
2018
£|Income
£|Expenditure
£|Investment
gains
£|**At 31**
**August**
**2019**
**£**|
|Victoria Adams Fund
General Endowment Fund
Hilda Watson Fund
Charrington / Broderers Fund
Wendy Hogg Fund
HB Allen Fund|1,955,334
532,440
3,290
3,392
18,876|250,000|(5,875)
(100)
(100)
(100)|55,448
15,099
93
96
535|**2,004,907**
**547,539**
**3,283**
**3,388**
**19,311**
**250,000**|
||2,513,332|250,000|(6,175)|71,271|**2,828,428**|
- a) The Victoria Adams Fund is an expendable endowment fund for student scholarships and the general purposes of the charity.
- b) The General Endowment Fund provides for the training of students.
- c) The Hilda Watson Fund provides prizes for Silk Work.
- d) The Charrington / Broderers Fund provides prizes for students.
- e) The Wendy Hogg Fund is an expendable scholarship / prize fund for students.
- f) The HB Allen Fund provides support for the Future Tutor programme.
The Royal School of Needlework **51**
**Notes to the financial statements** Year to 31 August 2020
## **19 Restricted funds**
|**Restricted funds**|||
|---|---|---|
|**2020**|At 1
September
2019
£
Income
£
Expenditure
£
Investment
losses
£
Transfers
between
funds
£
**At 31**
**August**
**2020**
**£**||
|Janet Churm Fund
Degree Building Improvements
Future Tutor Programme
Degree Programme
Campaign HCP New Rooms
Collection & Digitisation
Embroider a Selfie
Stitch Bank
Other Campaign Funds
Other Restricted Legacy|114,705
(51,980)
(471)
**62,254**
11,850
(6,464)
**5,386**
16,322
40,234
(56,556)
25,940
(25,940)
12,097
(2,041)
**10,056**
155,046
2,961
(325)
573
**158,255**
14,196
(2,833)
**11,363**
51,527
(34,065)
35,530
**52,992**
36,103
(36,103)
27,989
**27,989**||
||388,308
120,662
(180,204)
(471)|**328,295**|
|**2019**|At 1
September
2018
£
Income
£
Expenditure
£
Investment
gains
£
Transfers
between
funds
£
**At 31**
**August**
**2019**
**£**
161,689
(51,569)
4,585
**114,705**
19,266
(7,416)
**11,850**
36,534
64,766
(84,978)
**16,322**
31,140
(31,140)
28,887
(16,790)
**12,097**
140,924
17,275
(3,153)
**155,046**
14,566
(370)
**14,196**
35,973
39,403
(39,273)
**36,103**
27,989
**27,989**|At 1
September
2018
£
Income
£
Expenditure
£
Investment
gains
£
Transfers
between
funds
£
**At 31**
**August**
**2019**
**£**
161,689
(51,569)
4,585
**114,705**
19,266
(7,416)
**11,850**
36,534
64,766
(84,978)
**16,322**
31,140
(31,140)
28,887
(16,790)
**12,097**
140,924
17,275
(3,153)
**155,046**
14,566
(370)
**14,196**
35,973
39,403
(39,273)
**36,103**
27,989
**27,989**|
|---|---|---|
|Janet Churm Fund
Degree Building Improvements
Future Tutor Programme
Degree Programme
Campaign HCP New Rooms
Collection & Digitisation
Embroider a Selfie
Stitch Bank
Other Campaign Funds
Other Restricted Legacy|||
||465,828
152,584
(234,689)
4,585|**388,308**|
- a) The Janet Churm Fund provides support for both the Degree and Future Tutor programmes and was funded by a generous legacy from the estate of the late Mrs Janet Churm.
- b) The Degree Building Improvements Fund was established when the RSN Degree programme commenced. Expenditure relates to the depreciation on leasehold and other improvements, which were required to set up the Degree rooms at Hampton Court Palace.
- c) The Future Tutor Programme Fund specifically provides bursaries, prizes and day-today support for the Future Tutor programme and includes restricted donations and legacies from a number of donors.
- d) The Degree Programme Fund specifically provides bursaries, prizes and day-to-day support for the Degree Programme and includes restricted donations and legacies from a number of donors.
The Royal School of Needlework **52**
## **Notes to the financial statements** Year to 31 August 2020
## **19 Restricted funds** (continued)
- e) The Campaign HCP New Rooms Fund was established to fund the improvement works and equipment required to set up additional rooms at Hampton Court Palace, which were taken on in 2015 to accommodate expansion. It was funded by donations from a wide number of RSN Friends and other donors. Expenditure includes depreciation on capital works.
- f) The RSN Collection & Digitisation Appeal includes donations from a large number of RSN Friends, supporters and other donors towards the Cataloguing and Digitisation of the RSN Archive and Collection. This project is in the planning stages and it is anticipated that it will get underway in the latter part of 2020/21.
- g) The Embroider a Selfie fund is a project to introduce stitch to young people.
- h) The Stitch Bank fund is a project that aims to digitally conserve and preserve every stitch in the world, becoming the biggest repository of stitch in the world. The first phase is expected to go live in 2020/21.
- i) Other Campaign Funds include donations from a number of donors towards the RSN Stitch Bank, Archive & Collection Digitisation, Distance Learning and General Campaign projects. The funds have now all been transferred to separate restricted project funds, as detailed above.
- j) The Other Restricted Legacy Fund relates to a legacy received in 2016/17, which will provide support for the Future Tutor Programme.
## **20 Designated funds**
|**Designated funds**|||||
|---|---|---|---|---|
|**2020**|At 1
September
2019
£|New
Designations
£|Utilised/
released
£|**At 31**
**August**
**2020**
**£**|
|Futures campaign|610,000|||**610,000**|
|_2019_|_At 1_
_September_
_2018_
_£_|_New_
_Designations_
_£_|_Utilised/_
_released_
_£_|_At 31 August_
_2019_
_£_|
|_Futures campaign_|_650,000_||_(40,000)_|_610,000_|
The Futures campaign fund comprises monies set aside for various campaign projects. During 2019/20 no funds were utilised. In 2018/19: £40,000 of this fund was utilised for the RSN IT transformation project.
The Royal School of Needlework **53**
**Notes to the financial statements** Year to 31 August 2020
## **21 Analysis of net assets between funds**
**----- Start of picture text -----**
Share- Un-
holders Restricted restricted Endowment Total
funds funds funds funds 2020
Group £ £ £ £ £
Tangible fixed assets 15,441 27,866 43,307
Investments 326,672 2,203,281 2,808,801 5,338,754
Current assets 4,820 28,832 588,895 622,547
Creditors: amounts falling due within one year (42,650) (612,930) (655,580)
Creditors falling due in more than one year (48,333) (48,333)
Total net assets 4,820 328,295 2,158,779 2,808,801 5,300,695
Share- Un-
holders Restricted restricted Endowment Total
funds funds funds funds 2019
Group £ £ £ £ £
Tangible fixed assets 8,900 15,734 24,634
Investments 327,144 2,246,710 2,828,428 5,402,282
Current assets 4,790 79,948 486,084 570,822
Creditors: amounts falling due within one year (27,684) (525,276) (552,960)
Total net assets 4,790 388,308 2,223,252 2,828,428 5,444,778
Share- Un-
holders Restricted restricted Endowment Total
funds funds funds funds 2020
Charity £ £ £ £ £
Tangible fixed assets 15,441 27,866 43,307
Investments 326,672 2,203,381 2,808,801 5,338,854
Current assets 4,820 28,832 570,216 603,868
Creditors: amounts falling due within one year (42,650) (551,145) (593,795)
Creditors falling due in more than one year (48,333) (48,333)
Total net assets 4,820 328,295 2,201,985 2,808,801 5,343,901
Share- Un-
holders Restricted restricted Endowment Total
funds funds funds funds 2019
Charity £ £ £ £ £
Tangible fixed assets 8,900 15,734 24,634
Investments 327,144 2,246,810 2,828,428 5,402,382
Current assets 4,790 79,948 479,097 563,835
Creditors: amounts falling due within one year (27,684) (500,915) (528,599)
Total net assets 4,790 388,308 2,240,726 2,828,428 5,462,252
**----- End of picture text -----**
The Royal School of Needlework **54**
**Notes to the financial statements** Year to 31 August 2020
## **22 Operating lease commitments**
As at 31 August 2020, the group and charity had the following future minimum payments under non-cancellable operating leases:
|under non-cancellable operating leases:||||
|---|---|---|---|
|**2020**|Land and
buildings
£|Equipment
£|**2020**
**£**|
|Operating lease payments due:
within the next year
between two and five years|187,332
183,736
371,068|14,866
22,374
37,240|**202,198**
**206,110**
**408,308**|
|_2019_|_Land and_
_buildings_
_£_|_Equipment_
_£_|_2019_
_£_|
|---|---|---|---|
|_Operating lease payments due:_
_within the next year_
_between two and five years_|_211,136_
_382,805_
_593,941_|_14,866_
_37,241_
_52,107_|_226,002_
_420,046_
_646,048_|
## **23 Related party transactions**
RSN Enterprises Limited donates any profits via Gift Aid to the charity. During the year the RSN Enterprises Limited was loss making and so no donation was made (2019: £nil).
At 31 August 2020, £89,269 is due by RSN Enterprises Limited to the charity (2019: £103,673).
Council Members paid an aggregate of £1,703 (2019: £5,394) for classes and events, £114 (2019: £152 -discounted rates and donations of £1,451 (2019: £nil).
The Royal School of Needlework **55**
**Notes to the financial statements** Year to 31 August 2020
## **24 Comparative statement of financial activities for the year ended 31 August 2019**
|**Income and expenditure**|Unrestricted
funds
£|Restricted
funds
£|Endowment
funds
£|2019
Total
funds
£|
|---|---|---|---|---|
|**Income from:**
Donations and legacies
Investment income
Income from trading activities
Charitable activities
. School activities
**Total income**
**Expenditure on:**
Raising funds
Charitable activities
. Costs of school activities
**Total expenditure**
**Net (expenditure)/income before investment**
**gains and losses**
Realised (losses)/gains on investments
Unrealised gains on investments
**Net movement in funds**
**Reconciliation of funds:**
**Fund balances brought forward**
**at 1 September 2018**
**Fund balances carried forward**
**at 31 August 2019**|51,867
173,284
352,549
1,377,207|152,584|250,000|454,451
173,284
352,549
1,377,207|
||1,954,907|152,584|250,000|2,357,491|
||465,834
1,507,877|20,375
214,314|6,175|486,209
1,728,366|
||1,973,711|234,689|6,175|2,214,575|
||(18,804)
(31,068)
101,449|(82,105)
(2,024)
6,609|243,825
(31,460)
102,731|142,916
(64,552)
210,789|
||51,577
2,171,675|(77,520)
465,828|315,096
2,513,332|289,153
5,150,835|
||2,223,252|388,308|2,828,428|5,439,988|
The Royal School of Needlework **56**