The Royal School of Needlework Annual Report and Consolidated Financial Statements 31 August 2024 Company ReglslralSon Number 00012192 (England and Wales) Charfty Roglslradon Numbar 312774 Contents Reports Reference and administrative information About the RSN Chair of Truslees. introduction Report of the Council Statement of Corporate Govemance and Internal Control 27 Independeni auditor's report 35 Financial ststements Consolidated statement of financial activities 40 Balance sheets 41 Consolidated statement of cash flows 42 Principal accounting policies 44 Notes to the financial statements 49 The Royal School of Needlework Reference and administrative information Patron HM Th8 Que8n President HRH The Duchess of Gloucester Council Members Ms Pip Wood- Chair of Trust8es Mr Keith Pickard- Honorary Treasurer", Ms Louisa Christofidou" Prof Patsy Cullan. Ms Victoria Farrow Dr Paula LeftwichX+ Ms Eleri Lynn, Mr Peter Mila Miss Sarah Mumford. Ms Clara Poon Ms Julie Richards Prof Dominic Tweddle. *x+ ' Member of the Finance and Investment Committee X Member of the Educ8tion Committee * Member of the Fellowship Committee Chlef Executlve Dr Susan Kay-williams (until August 2024) Ms Rhian Harris (from September 2024) Regl8t8red office Apartment 12A Hampton Court Palace East Molesey Surrey KT8 9AU Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL 8anker8 Barclays Bank plc 8112 Church Street Walton on Thames Surrey KT12 2QX The Royal School of Needlework 1 Reference and administrative information Investment managers J M Finn & Co (until November 20241 25 Copthall Avenue London EC2R 7AH CCLA (from November 20241 One Angel Lane London EC4R 3AB Company registration number 00012192 {England and Wales) Charity r•glstratlon number 312774 The Royal School of Needlework 2 About the RSN The RSN was established in 1872 to revive and teach the art of hand embroidery. Over our 152 years we have expanded our activities and extended our reach worldwide gaining an international reputation for the expertise and skills of our tutors and staff, and th8 excellence of work in our professional studio. No other single organisation covers the breadth of work we now undertake. We use our remarkable history and knowledge to teach, practise and promote the art of hand embroidery. Based at Hampton Court Palace. in south-west London, the RSN offers an education programme for beginners through to those pursuing hand embroidery as a professional career. We estimate around 2,000 people undertake a course with us each year. Validated by Kingston University, we run the only BA Honours degree course in Europe dedicated to hand embroidery. We teach one-day or weekly leisure courses online to embroiderers worldwide, and onsite primarily across the UK, and also in the US, Australia and Japan. We run an annual international summ8r school and offer pre-recorded video courses for people to study at their own pace. We hold classes in partnership with other organisations and venues and design bespoke courses on application. Our Certificate & Diploma tor stitchers wanting a higher level of technical tuition comprises modules on diff erent techniques, each with around 40 hours of tuition and our Professional Embroidery and Tutor Programme prepares graduates for a career in professional embroidery and, or, teaching. RSN trained embroiderers are well regarded by customers and in demand by other embroidery 'schools' because of their depth and breadth of knowledge and expertise. We recognise the extensive Iraining they have undertaken through the RSN Fellowship programme. Our professional studio specialises in bespoke commissions, and the restoration and conseNation of historic textiles. All work is undertaken in th8 UK to a consistent and high standard by RSN train8d professional embroiderers. It is the only UK studio with access to such a pool of highly skilled stitchers practising Iraditional and historical stitches and using this knowledge as inspiration for large and specialist commissions. We further promote hand embroidery through exhibitions, talks (live and recorded), introductory taster sessions and schools, projects. Our extensive Archive and Collection informs and inspires. Comprising around 10,000 embroidered items and textiles collected and donated from all over the world. it provides inspiration to both recreate historical designs and encourage modern applications and interpretalions. Access to the collection is currently limited, but we have now started digitising items which are published online via our website. The RSN Stitch Bank was introduced in 2021 to mark our 150th anniversary. Currently containing nearly 500 stitches, it is a free online resource aiming to digitally record every known stitch. It is the largest free database of stitches in the world and is used by embroiderers as well as a wide variety of people such as curators, and historians of stitch. The Royal School of Needlework 3 About the RSN An online retail operation and physical store are based at Hampton Court Palace. Every purchase helps support the RSN. The RSN is a register8d charity. We are very grateful to the organisations and individuals who support our work. OUR MISSION Our mission is to preserve the heritage and lead the development of hand embroidery. enriching lives by inspiring, teaching and innovating to provide the widest access to our knowledge and skills. We deliver this through our values of Tradilion, Quality and Innovation. The Royal School of Needlework 4 Chair of Trustees, Introduction Year to 31 August 2024 The 2023-24 academic year was a real step forward forthe RSN as we introduced a number of initiatives and developed a more collaborative approach to delivery. Activities which have been the recent focus of fundraising came to fruition, including our long held ambition to digilise items from our Collection providing wider access via our website. We reviewed our tutor programme, launching the three-year Professional Embroidery Tutor course which better prepares individuals for a career in professional embroidery and or teaching and introduced the RSN Fellowship to recognise those who have completed the most intensive and rigorous training of all RSN courses. We also updated our strategy to guide our work over the next few years and this will help us refocus and strengthen our ability to deliver the incredible breadlh of educational courses and resources for which the RSN is known. It will also enable us to widen access to our extensive experience and expertise in hand embroidery built up and passed on over the past 152 years. C8ntral to this is our desire to reach out and work with a broad ranga of partners helping us reach new audiences at a scale and pace we could not achieve on our own and directly targeling our skills, knowledge and encouragement for the specific benefit of their members and stakeholders. Reviewing our operating model is also essential for our own organisational sustainability. The RSN has a financial deficit which must be rev8rs&d and we are now investing in the structure and plans needed to effect this. The strategic development of this approach took place during 2023-24, and at the poinl of writing we are gearing up to deliver th8 initial projects with a range of partners under the programme brand of Fragile Threads. This initiative also helps focus our efforts to champion sustainability. Within our own opsrations w8 ar8 committed to adopting working practices that will assist continued environmental improvement and through Fragile Threads we aim to raise awareness, improve understanding and, through the medium of embroidery, challenge behaviour which is leading to the loss of essential species. You can read more about this in our 'Looking to the Future, section on page 20. Dr Susan Kay-williams, our Chief ExecutlV8 for the past 17 years, retired at the end ol August 2024. Under her leadership the RSN introduced many new programmes and initiatives. She also helped navigale the path through the challenges of the pandemic when the RSN pivoted operations to an online model as Covid-19 locked us down. We thank her for her dedication and commitment to the RSN and wish her all the best for the future. Our new Chief Execulive, Rhian Harris, took up post in Seplember 2024 and will lead our new strategic approach. She has worked with a range of historic and contemporary art. design and social history collections and has a passion for making heritage. culture. art, craft, and design accessible to a wide and diverse range of people, putting learning and participation at its heart. We are very excited about the skills and expertise Rhian brings, and the Trustees are looking lo￿ard to working with her to ensure the RSN continues to develop, grows stronger and becomes sustainable. We welcomed Clara Poon to our Council of Trustees in September 2023 and Peter Mila joined at the start of the 2024125 academic year. Both strengthen our Council further adding important skills needed for the oversight and delivery of our strategy. The Royal School of Needlework Chair of Trustees, Introduction Year to 31 August 2024 As a charitable body we are constantly checking activty in line with available funds. Our Operation is reliant on the customer support of our commercial activities and the kind donations of individuals, charitable trusts and organisations who share our passion to preserve the heritage of hand embroidery and ensure its continued relevancy and contribution to modern society. We are very appreciative of all the support and the hard work and passion of our staff. tutors and volunteers who help deliver our vision. and to our students, customers and other beneficiaries who make it all worthwhile. Pip Wood Chair of Trustees The Royal School of Needlework Report of the Council Year to 31 August 2024 This report highlights activity during the year ended 31 August 2024 and represents the breadth of our operations which contribute to our ambitions and objectives. More details on these and many other of our activities can be found on our website royal- needlework.org.uk The Members of the Council (as Trustees), present this r8port and the audited consolidated financial statements of The Royal School of Needlework for the year ended 31 August 2024. The report has b8en prepared in accordance with the Charities Act 2011 and is also the group report of the direclors for the purpos8s of the Companies Act 2006. The reference and administrative information on page 1. further information About the RSN (including our mission) on page 3, and the Message from the Chair on page 5 also form part of the report. The financial statements have been prepared in accordance with the accounting policies on pages 44 to 48 of the attached financial statements, and comply with our memorandum and articles of association, the Charities Act 2011 and Accounting and Fleporting by Charities: Statement of Recomm8nded Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and comply with the Off ice for Students, Accounts Direction. OUR STRATEGY & AMBITIONS We have three key areas of focus. Provision of tuition and resources; Practice of hand embroidery., Promotion and insight into embroidery heritage and contemporary use. To achieve our mission, we are focus8d on ambitions set out in our five-year strategy for 2022-2027. This aims to ensure activity is forward-looking, relevant, and underpinned by strong and sustainable finances and foundations. We aim to engage and inspire and to put students, customers and wider beneficiaries at the heart of all we do so that we can deliver a bigger impact for a broader audience. Our core ambitions are listed below Delivering A Forward-Looking, Relevant, And Customer-Driven Proposition Develop a collaborative programme that connects hand embroidery with a key societal issue highlighting ils contemporary relevance to increase the accessibility of our activity. Ensure we have a customer driven, relevant offer to broaden engagement and increase participation. Leverage our legacy and share our expertise. The Royal School of Needlework 7 Report of the Council Year to 31 August 2024 Developing Secure Flnances Develop new Fundraising strategy. Develop networking and external relationships to increase viability of our community delivery through groups and partnerships. Grow profitable operations and develop new revenue streams. Building Strong Foundations Embed engaging, empowering and collaborative culture. Build awareness of our activities to encourage broadar participation and engagement. Review and improve operations and delivery. DELIVERING A FoRwAR￿L00KlNG, RELEVANT, AND CUSTOMER-DRIVEN PROPOSITION We usa our experience and expertise to develop a range of courses and educational activities to further strengthen our leadership in hand embroidery. To develop a collaborallve programme that conn•cts hand embroidery with key 80cietal issue3 hlghlightlng it8 contemporary rel•vanGe to Increas8 the acce88ibilily of our activity. During nurnerous intérnal and external feedback sessions and consultations over the past couple of years we have h8ard the need to modernise the perception of hand ambroidery and demonstrate its relevance to reach a widar audience. We must also help make the practice more accessible to those unable to afford classes - with the RSN or other organisations. This goes to the heart of our founding purpose to preserve th8 broadest range of hand embroidery techniques which we did by providing training and work for women who had to earn a living to support their families. During the year we have developed an approach to help raise awareness, understanding and challenge behaviour around Climat8 Change and the damage to biodiversity through species loss. This programme, called Fragile Threads, will be deliver8d through enhancements to some of our programmes and by making hand embroid8ry more accessible through collaboration with like-minded partner organisations. It will launch in 2025 and you can read more details on page 20 in our 'Looking to the Future, section. The Royal School of Needlework Report of the Council Year to 31 August 2024 A customer driven, relevanl otter to broaden engagement and increase participation The RSN is renowned for the high standard of its teaching and expertise. We teach original methods and keep the cultural and societal relevance of hand embroidery alive. While our Professional Embroidery Tutor programme and our Certificate & Diploma have technical excellence at their core, we welcome stitchers of all levels through a broad range of classes and courses. All are delivered by expert RSN trained tutors who bring a wealth of experience, technical knowledge and enthusiasm. Our future sustainability d8P8nds on presenting our knowledge and expertise in a relevant and attractive way to existing and potenlial embroiderers; this is at the core of our mission to both preseNe the heritage and lead the development of hand embroidery. Wé ar8 always working to refine and develop our activities. during the year we carried out detailed reviews of some of our courses. Underpinning them all is continuing to train and develop a new generation of professional hand embroiderers and tutors. RSN Professlonal Embroldery TuSllon Customers tell us they actively choose courses taught by RSN trained tutors because of the depth and breadth of Iheir teaching and embroidery expertise. We paused entry to our'Future Tutor, programme in Septemb8r 2023 to undertake a full review and ensure we were providing the best content to prepare graduates for a modern career in hand embroidery. We launched a new syllabus in September 2024 with our three-year Professional Embroidery Tutor Programme (PET). Under the guidance of our own expert tutors, participants are trained to the highest level in technical hand embroidery. They also receive classes in Art & Design and Business Skills, as well as opportunities tor Teaching Practice and teaching opportunities with the RSN following graduation. The programme now offers more flexibility lo help participants juggling study with home and family responsibilities. The course was fully subscribed in September 2024 and will now open to new entrants every other year. We are working towards providing a Scholarship place in an effort to increas8 the diversity of tutors and role models graduating from the course. With the PET programme now running every otheryear we hope to offera mor8 holistic level of scho5arship support beyond basic course fees. The RSN Fellowship Many people have been trained by the RSN. However, only those successfully graduating from our Apprenticeship, Future Tutor, or PET programmes have undertaken and passed the most intensive and rigorous training of all RSN courses and are uniquely qualified to teach and practise the highest standards in the broadest rang8 of embroidery techniques. The Royal School of Needlework 9 Report of the Council Year to 31 August 2024 In March 2024 we launched the RSN Fellowship to recognise their significant training and commitment. Fellows can now use post-nominal letters and the RSN Fellowship badge to publicly demonstrate and differentiate their level of training and expertise. RSN Short Course8 Ourday. evening and weekly courses are often a customer's first experience of the RSN. They cover a broad range of techniques, often based on stitching a kit, and cater for beginners to advanced. Many courses ar8 f18xible to support a mixed ability of participants who learn in small and friendly groups. Classes are held at Hampton Court Palace and online which attracts a worldwide audience. During the year we ran more than 100 classes; nearly 50 comprised a single day with others being multiple days or a series of sessions over a number of weeks. RSN Partnership Classes take place at a special venue, usually with an RSN connection, bringing our teaching to new locations and audiencas. Many offer an 'added value 8xperience' such as access to an otherwise private venue, exhibition entry or private curator-led talk. These class8s ar8 very popular, and last year we ran 20, up from 16 the year before, with ten partners across 13 venues. We had not reviewed the content, promotion and delivery of our short courses for a while so in Summer 2024, we invested significant time to understand and evaluate customer experiences and the thoughts of tutors delivering our classes. RSN Summer Schoo18 W8 run an annual International Summer School with day, or multiple day, classes at Hampton Court Palace and online. There are additional benefits such as talks, grfts and, for those at Hampton Court, exhibitions and a tour of our embroidery Studio. In Summer 2024 we ran over 30 classes including two at our Durham centre and 11 online. A group of tutors travelled to the US to deliver a further 18 classes. RSN Bespoke Cla88e8 We are uniquely placed to organise bespoke classés tailor8d to the interests of groups or individuals. Taught online or at Hampton Court Palac8, participants travel from around the world to enjoy talks, exhibitions, curator-led viewing of obj8Cts from our Collection and Archives and embroid8ry courses. Online Video Courses We offer a series of online video courses for stitchers to learn in their own time, at their own pace and in the comfort of their own home. Led by RSN Tutors, a growing range of courses cover a wide range of hand embroidery techniques and different designs. By the end of August 2024, 16 courses were available. The majority are equivalent to a three day class but two shorter introductory courses, equal to a one day course, were added this year and have been well received. The Royal School of Needlework 10 Report of the Council Year to 31 August 2024 The programme includes video instruction to complete an exclusive kit and step-by-step written and photographic guides. Customers can interact with other participants through a private Facebook group. This part of our offer has previously b8en marketed to customers by a third paty operator but in September 2024 we brought the operation in house. Courses continue to sell well. RSN Certlflcate & Dlploma Many customers progress from short courses to our part-time Certificate & Diploma {C&D) course. the RSN'S flagship leisur8 programme. This attracts several hundred students each year providing tuition to a very high technical standard. T8aching takes place at Hampton Court Palace, online and around the UK (Bristol. Rugby, Durham and Glasgow) as well as Japan. Students can pace their learning or take an intensive course which runs a couple of tim8s a year in th8 UK, US and in July 2024 we started teaching in Brisbane, Australia. Online classes run in Ihr8e time zones: UK/Europe, North and South America and AustralialNew Zealand/SE Asia. The Certificate comprises four modules and the Diploma six. Each module averages eight days 140 hours of tuition and is therefor8 a significant investment for the student. Students can mix online and in-person tuition which was particularly welcomed by some students adversely affected by the current cost of living. Interest in C&D r8mains strong, and we increased our capacity to get students started on the first 'set' Jacobean module. Students then choose which technique they study next although many value their class community and stay together throughout the course. This year we consulted with around 150 C&D students from Canada, USA, Australia, New Zealand and the UK to learn more about their thoughts on course assessment. As a result. we introduced a naw assessment process in January 2025. Students were also very complimentary on the Standard of tuition and the accessibility of online tuition. RSN BA (Hons) Hand Embroldery Our degree programm8 is strategically important to the RSN,. it has an excellenl reputalion within the fashion and interiors industries and enables us to work collaboratively with fashion houses and creative partners. It is the only full time BA (Hons) Degree programme specialising in hand embroidery in Europ8, developed to provide an academic learning experience which connects creative practice, textile and design theory with a technical skills base of hand embroidery. Validated by Kingston University. students use contemporary approaches to traditional hand embroidery techniques, venturing into creative careers in fashion, interiors or textile art. The Royal School of Needlework 11 Report of the Council Year to 31 August 2024 Skills development is at the heart of the degree. and these are applied to real world projects, giving students the opportunity to experience and network with major potential employers and influencers. Students develop very different interpretations, becoming confident practitioners, designers, cr8ative thinkers and innovators. Our graduates are sought after for their highly skilled work and professional conduct within external settings and gain employment in a wide variety of sectors such as couture, costume, interiors. and textile art. Post covid applicant numbers dipped in September 2023, consistent with the sector. We worked hard to promote the course during the year and we welcomed a full complement of students to start their studies in September 2024. We are how8vef reviewing how to deliver a more financially sustainable programme as we heavily subsidise the course. The entire UK higher education sector is feeling the pressure of inflationary costs while being unable to increase tuition fees, the main source of income, to a more sustainable level. We are extrem8ly grateful to those funders, including Livery Companies. Friends, individual donors, and people who hava left us legacies to provide bursari8S SO that our students are able to afford to attend. Leverage our legacy and shar• our •xp•rti8• The RSN Prole88ional Embroid•ry Studlo Originally called the workroom when the RSN was founded in 1872, our Studio at Hampton Court Palace today offers bespoke embroid8ry services attracting projects from all over the world. including from royalty, places of worship and Liv8ry Companies to leading fashion and interior design houses and private individuals. It is unique in being able to call on our network of RSN trained embroiderers and tutors as need8d for large and urgent commissions. In September 2023 our Head of Studio & Standards and Studio Manager were awarded Coronation Medals for their and the RSN'S work on the Coronation of King Charles 111 and Queen Camilla (hereafter Yhe Coronation'l. They accapted the medals on behalf of the wider RSN team. 2023-24 was a more 'level' year. We had an increase in work from Iiv8ry companies primarily due to our work on The Anointing Screen. gifted for the Coronation by th8 City of London Corporation and many participating livery companies. We also und8rtook work for new, regular and retuming customers. We saw an increase in design enquiries, particularly from interior designers looking for bespoke and special soft furnishing and furniture items. and larger scale piec8S. The RSN'S activities are all interlinked and support 8ach other and this is particularly true of the Studio. It supports the teaching of degree and PET students and also designs kits for sale in the RSN shop. The Royal School of Needlework 12 Report of the Council Year to 31 August 2024 The RSN Studio designed and embroidered the Queen's Robe of Estate for the Coronation and we were delighted when Her Majesty agreed to the Studio producing a special 'sampler' featuring every flower and insect included on the robe, worked in the sam8 techniques but at half the scale.11 will become part ofthe RSN Collection & Archive. The Studio also produc8d kits featuring six of the flowers. These went on sale in Autumn 2024. complementing 15 other kits produced and launched by the Studio during the 2023-24 year, one for each decade of the RSN'S 150 years. All are available from the RSN shop and online, RSN Collection and Archive The RSN Collection and Archive brings the heritage of hand embroidery to life and we use our legacy to inform activities and showcase our experience and expertise. Our Collection is one of the largest of historical 8mbroidery comprising around 10.000 embroidery and textile pieces. many of which are rare, dating from the 7th century. Our Archive documents the RSN'S 150 year history of embroidery design and produclion. The Coll8Ction both informs and teaches us about embroidery heritage and inspires the creation of future items. Objects span the globe and the broadest range of iechniquès, stitches, and materials. It is an invaluable tool for RSN students and staff, as well as external researchers, historians, museum professionals, embroiderers, archivists, and artists. Acc8ssibility ol the Collection has been largely limited to exhibitions. talks and lours, but in April 2024, thanks to g8nerous donations from RSN Friends, Trusts and private individuals, we realised a long-held ambition to make it more accessible and launched thefirst 100 digilised pieces online giving a glimpse of the Collection's breadlh and depth. Th8 new websit8 is frea of charge to view, and features comprehensive catalogue entries, high-definilion images, makers, names, datas, places, stitches, motifs. techniques and extensive descriptions. Visilors can learn about the techniques and stitches featured via links to the RSN Stitch Bank. Itèms can also reveal a stitcher's access to materials, education and travel and their inspiration for design, symbolism and meaning. Embroidery is particularly important for its ability to shed light on under-represented individuals, especially women and girls, members of poorer classes, and those in the margins of soci8ty. We are continuing to add to the online resource but must raise funds forthis important work to continue further. Exhibitions We regularly exhibit pieces from our Collection and Archive as well as students, work. at events around the UK and in exhibitions at Hampton Court Palace. These often provide an entry point to the RSN as many visitors go on to take our classes and courses. Exhibitions are complemented by talks, curated tours and private views. The Royal School of Needlework 13 Report of the Council Year to 31 August 2024 In July 2023 we opened 'The Royal School of Needlework & Five Coronations 1902 - 2023, which was scheduled to run until mid-November 2023 and was extend8d to May 2024 due to demand. We ran nearly 60 tours all of which sold out. In August 2024, a free exhibition of items from the Collection opened at the Stirling Smith Art Gallery and Museum in Scotland. 'Embroidered Excellence.. Treasures from the RSN Collection,, ran until mid-November 2024 and brought tog8ther some of the finest examples of embroidery in our Collection. 'Tales of Textiles: The RSN Collection in Focus, is now running from Sept8mber 2024 to June 2025, and focuses on English embroidery and many of the first 100 objects to be digitised and catalogued. RSN Online Talks Onlin8 talks were introduced in 2020 in response to restrictions imposed during the pandemic but have become an established feature. They help us develop an online community around th8 world and to stay engaged with RSN supporters who may no longer be able to stitch. Many talks feature items from our Collection & Archive and are entertaining and educational. Viewers make a donation to watch the talks. Talks are recorded and available on demand after the event on our website. Speakers includ8 RSN staff members and guest speakers such as authors, historians, and curators from some of our venue partners. Fifteen talks were held this year with participants from over 20 countries including more unusual locations of Lithuania, Croatia, Mexico and Turkey. The most popular featur8d dress historian and broadcaster, Amber Butchart, which was only surpassed by an event promoting the RSN Stitch Bank attended by nearly 1,000 viewers. RSN Stitch Bank RSN Stitch Bank goes to the core of our mission, making knowledge of stitches freely availabl8 to preserve heritage and ensure hand embroidery continues to develop. It features videos. written instructions, illustrations, photographs and the hislory and use of stitches as well as images of examples from our Collection. It is used by students, curators, historians and practitioners and currently contains nearly 500 stitches. It is the largest free database of stitches in the world with an aim to digitally presenie every stitch. While some of the earlier stitches to be featured were those in mor8 common use, the Winter 2023 'release' featured late 16th l early 17th centuries stitches that hav8 fallen out of use, as well as diflerenl ways of working familiar stitches. We are very grateful to our generous funders for enabling us to add more stitches to RSN Stitch Bank and to keep it as a free resource. The Royal School of Needlework 14 Report of the Council Year to 31 August 2024 DEVELOPING SECURE FINANCES Like most charities, we have to raise funds to support our operations and charitable objectives, and we are ever mindful of the need to develop strong and sustainable sources of finance and allocate funds appropriately to get maximum return. Develop new Fundraising strategy The RSN does not receive any statutory funding. In particular, we raise funds for all new projects as well as for student bursaries. This year we recruited a dedicated Fundraising Manager to strengthen our fundraising efforts across the board including from Trusts and Foundations, Legacy Fundraising. Individual Giving and Major Donors. We will be developing a new and robust fundraising strategy to take us forward. We are also hugely indebted to the many individuals and organisations who respond to requests to help fund sp8cific projects, including RSN Stitch Bank and the digitisation ol RSN Collection and Archive. These important projects help conserve knowledge, skills and embroidered textiles, and also provide important reference resources. We aré particularly grateful to those Livery Companies, Charitable Trusts and individuals who supported our students through bursaries this year and to those who support the FISN including a number of livery companies: The Worshipful Company of Broderers, The Worshipful Company of Dyers, The Worshipful Company of Girdlars, The Worshipful Company of Gold and Silver Wyre Drawers, The Worshipful Company of Haberdashars, The Worshipful Company of Needlemakers. a number of charitable trusts this year including The Coats Foundation Trust, The Honourable Society of Knights of the Round Table, The Pitt Rivers Trust, The Arts Society, The Radcliffe Trust, The Headley Trust, Newby Trust, Lord Barnby's Foundalion, SE Franklin's Charitabl8 Trust Number 3, Trapp Family Foundation, The Henry Lumley Charitable Trust. RSN Friends Friends support the RSN through advocacy, engagement with core activities and donations making a vital contribution in supporting our work and ongoing development. This year we introduced new membership options to distinguish between Friends who want to support the RSN but who no longer stitch and those who continue to practise hand embroid8ry. As well as supporting our work, Friends receive benefits including exclusive biannual newsletters. advance information and Pfiorily booking notifications for classes and events, along with 10 /0 discount on RSN Shop purchases, Exhibition Tours, and Online Talks. The Royal School of Needlework 15 Report of the Council Year to 31 August 2024 RSN Stitching Friends receive the same benefits plus 10°/g discount on selected Day and Short Courses {and our International Summer School). We also hold exclusive 8V8nts such as the Private Views of the Degree Show and also of the work of our Future Tutors and C8rtificate & Diploma Graduates in July 2024 at Hampton Court Palace. Develop networking and extemal relationships to Increase viability of our community delivery through groups and partnerships We have good links with many organisations involved with or connected to similar pursuits and related backgrounds. Several of our online talks and classes revolve around partners who share information about textile items in their own collections and we run classes at their venues providing a new location to reach communities. Developing new relationships is at the heart of the new Fragile Threads programme which will connect us with organisations which can help introduce the enjoyment and benefits of hand embroidery lo new audiences at a pace and scale we could not achieve on our own. School8 and engag•m•nt programmo8 Inspiring a new generation of stitchers is an important part of our mission. Since 2018 we have offered the free 'Embroider a Selfie, project to schools thanks lo support from the Worshipful Company of Girdlers. Schools can apply for free needlework supplies and access to a host of ideas and demonstration videos. For the second year running thanks to the support of the Worshipful Company of Broderers, we ran Family Days and School Workshops with partners at seven different venues which showcased hand embroidery to hundreds of children and families, up 40Vo over the previous year. We will continue to build on these programmes and bring innovative ways io introduce embroidery and engage the next generation. Grow profllable operation8 and develop n•w revenue strnam8 The reviews conducted this year will increase the relevance and attractiveness of our courses and help fund the free resources we provid8. We also improved and developed areas of particular strength such as Talks and Partnership Classes (see page 10) and the RSN Shop. The RSN Shop During the year we introduc8d new products and ranges resuEting in a significantly more dynamic and engaging offer to complement staple embroidery products. The refreshed offer and a programme of themed marketing helped deliver an increase in sales. The Royal School of Needlework 16 Report of the Council Year to 31 August 2024 In particular kits designed by RSN tutors and presented under a consistent brand have sold well and unique products such as the six coronation kits (see page 13) have appealed to avid collectors with some customers buying the complete set. Our initial stock of the kits sold out within two months and has now been replenished. Significant growth is difficult given space constraints at Hampton Court Palace, but we will be upgrading our online shop and stock management system this year to improva efficiency. Whilst maintaining our ethos of UK handmade, we are working alongside British Heritage brands to create low cosuhigh volume branded equipment suitable for wholesale. These products will sil alongside higher value branded products offering retailers a full range and will also help showcase and promote the RSN Retail brand at Trade Shows, Exhibitions and Pop-up Shops. Now Rev•nue 8tream8 We have continued to develop new courses where there is recognised ne8d playing to the RSN'S purpose and strengths as a leader in the practice and heritage of hand embroidery. Hand Embroldery: Ski118 and Studle8 Developed by RSN TutorTracy Franklin and launched in September 2024 at our Durham centre, this course includes learning traditional methods and techniques, experimenting with new approaches, and invéstigating domestic and international contemporary and historic embroideries. Students build a body of personal work and research which they are encouraged to share and contribute to a collection of stitch which will grow over tima. RSN Hlstory of Embroldery Course During the year we began development of this online course which explores embroidery in context. It will be Ihe only leisure-based History of Embroidery course of this depth. Launch is scheduled for 2025 RSN Masters Programme We have paused progression of a postgraduate Masters course to focus on other activities during the current challenging economic climate. BUILDING STRONG FOUNDATIONS We need the appropriate resources and systems in place to support our staff in the delivery of our ambitions. Embed engaging, empowering and collaborative culture Hampton Court Palace is a popular location for our off ices and primary teaching spaces and in September 2023 we took additional space to house our Archiving and Digitisation project and several of our Education administrative team. The Royal School of Needlework 17 Report of the Council Year to 31 August 2024 However, we are spread out in different locations around the Palace making it more challenging for staff and students to always work together effectively. Our staff survey in Spring 2024 provided feedback on potential improvements to our ways of working and this is a key task for our new Chief Executive. The effectiveness, efficiency and retention of our employees through developing a fulfilling car88r at the RSN is fundamental to our success. In May 2024 we appointed a HR professional in th8 n8w role of Director of Staff and Customer Engagement to work with our new Chief Ex8CUtive to support employees and embed an empowering and collaborative culture which puts students, customers and beneficiaries at the heart of all we do. Bulld awarene88 of our activity to encourage broad•r partlclpatlon and •ngagement RSN Sip and Stllch In November 2023 we held our first online 'RSN Sip & Stitch, event live from Hampton Court Palace with over 700 people r8gistering for the event worldwide. Two smaller onsite events at our Brislol and Durham satellites sold out. While primarily an event organised to encourage wider participation, il also stimulated donations to the RSN Stitch Bank and increased engagement with significant spikes in website visitor numbers. Mark•tlng and Communlcatlon8 Our work for the Coronation continued to feature in marketing and communications. W8 celebrated Goldwork at The Knitting & Stitching Shows in London and Harrogale in the autumn. and Fashion & Embroidery at the Birmingham NEC in the spring. On Boxing Day 2023, the 8BC Documenlary, Char18s 111.. The Coronation Year, attracted an audience of 4.8 million and featured footage from Their Majesties, visit to the RSN to see our work Unde￿ay. In May 2024, the first ever digitised version of the Coronation Roll, th8 official rècord of the Monarch's acc8ssion and crowning, was unveiled and we were honoured to feature in an interview. Digital Marketing has become an 8Xtremely important area, targeting regions and audiences with our online offer. Our Instagram and TikTok accounts saw the biggest gr0￿h. The latter reached a new audience with behind-lhe-scenes videos of Degree and C&D students discussing the inspiration behind their work. Subscription to our eNewsletters has continued to grow. In September 2023 we opened our doors at Hampton Court Palace as part of the Open House Festival, inviting visitors to see behind the scenes of our Embroidery Studio, not usually open to Palace visitors. We gave free one-hour tours of our Education department to around 400 visitors- most of whom w8re new to the RSN. The Royal School of Needlework 18 Report of the Council Year to 31 August 2024 Review and improve operations and delivery Online is the primary method for our educational operations and delivery from booking a talk to taking a class, so the enhancement of our digital provision is critical. This year we have invested in a significant upgrade to our internet line, to achieve greater resilience and quality of online experience for students and staff. We have also taken on delivery of the online video courses as detailed on page 10. The RSN Studio website also received a rebrand. We continue to upskill staff in using collaboration and file sharing tools to enhance productivity and cross organisational communication. SUSTAINABILITY Sustainability takes different forms at the RSN. Our Operallons We are based at Hampton Court Palac8 which is looked after and managed by the independent charily Historic Royal Palaces. In undertaking daily duties, we accept our staff will have an influence on the environment and we are committed to adopting working practices that will help to have a positive effect, assist towards continued environmental improv8ment, and reduce unavoidable negative influences while acknowledging that we musl conform with the requirem8nts of operating within a Grade 1 listed building. Within our own operations, we continue to look at further prioritising eff icient use of resources and materials. We reuse and recycle, practlS8 r6sponsible procurement where possible and aim for 'minimum waste.. This year we reviewed our investment manager and the investment of our reserves moving to an ethical inv8Stment fund run by an Investment Manager which promotes a healthy society and environment. Assets are carefully selected for long-term value and act collectively to encourage systemic change helping to accelerate progress in meating major sustainability challenges. Our Ethos Sustainability is also rooted in our purpose to sustain the art of hand embroidery by preserving the heritage and promoting its contemporary relevance. Our Studio undertakes restoration and conservation work and makes a much-valued contribution to social sustainability. We think positlV8ly about sustainability, and this is actively taught and embraced by our students. We are an advocate for positive change in sustainable fashion, often featuring historic items from our Collection that have been repurposed for another use or owner. We teach and engage people in visible mending techniques to reduce waste in textiles and fashion and this class ran regularly this year. We encourage the donation of unwanted items to our Archive and Collection. for studenl and customer use, and as project resources for beneficiaries such as schools. The Royal School of Needlework 19 Report of the Council Year to 31 August 2024 Agitating for Change through the Language of Slitch This year we hav8 d8veloped a collaborative programme to work with partn8rs to raise awareness, understanding and challenge behaviour around climate change and species loss (see Looking to the Future). LOOKING TO THE FUTURE During 2023124 we developed a new approach to widen access to our extensive 8xp8ri8nce and expertise and the result. which will be introduced during 202412025, is a new initiative called Fragile Threads which tackles on8 of the world's most urgent contemporary issues; Climate Change and biodiversity loss. For centuries nature has inspired extraordinary pieces of embroidery and at the same time unique, rich embroidery traditions have used stitching to record events, impart knowledge, and make powerful statements of intent. Fragile Threads places this tradition of s8lf-8xpression and an exploration of the current f ragility of the natural world side by side. Through collaborative partnerships it will help raise awareness, understanding and challenge behaviour around species loss through the medium of hand embroid8ry. Different species work together to maintain viable eco-systems and provide us with key benefils such as food, clothing, and medicine. Yet estimates suggest 50°/0 of all specias will vanish within the next cenlury and globally one million species are thought to be at risk. Fragile Threads will develop compelling narratives, explain and educate by empowering individuals, groups, and communities to tell their own biodiversity stories through hand embroidery. We aim to share their learning and the impacts on their lives, through curated events, raising awareness, understanding, and challenging behaviour to help protect our natural world. The programme has been warmly received by many organisations and individuals already approached and a number of collaborations are confirmed for launch in Spring/Summer 2025. This will take the art of hand embroidery to new and more diverse groups at a scale and pace we could not achieve on our own. Fragile Threads aims to reach and impact a broad and diverse audience, and key objectives are to: Create and preseNe the heritage of hand embroidery techniques and traditions Wid8n access, engagement, and participation through the universal language of embroidery Promote the positiv8 impact to a person's mental health and wellbeing through mindfulness and creative activity Raise awareness. improve understanding, and challenge behaviour around the impacts of climate change and loss of biodiversity through the empowering medium of embroidery Champion sustainability Re-energise and re-focus the RSN'S ongoing relevance to assist its future development. The Royal School of Needlework 20 Report of the Council Year to 31 August 2024 We are incredibly grateful to the wide range of individuals and organisations who have helped us develop this programme by sharing their experience, expertise and enthusiasm and look forward to developing and extending the programme further. FINANCIAL REVIEW Financial report for Ihe year The consolidated stalement of financial activities for the year shows a net deficit {before investment gains) of £477,417 (2022123.. deficit of £317,373). The overall income for the year 2023124 of £2,969,245 was £213,197 higher than that of the previous financial year (2022123: £2,756,048). Income from donations and legacies was £113,199 higher than the prior year, at £315,131 (2022123: £201,932). largely due to the fact that tha prior year figure contained a charge of £99,473 against legacy income; excluding this, the increase in income over the prior year would have been £13,726. Donation income for the year includes a very generous donation of £89,361 in the form of shares from one of the charity's major supporters. No grant income was received during the year {2022123', £nil). Donations and legacies remain an 8Xtremely 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's turnover of £612,513 (2022123: £587,577) increased by 4 10 driven by an increase in retail salas through the shop. Studio income was lower than the prior year, as a rang8 of itams for th8 Coronation of King Charles 111 and Queen Camilla were commissioned during that period. Income from charitable School activities amounted to £1,887.974 (2022123: £1,807,188) a 4019 increase year on year. The year saw the first International Summer School in the US since Ihe Covid 19 lockdowns, with this income being offset by a reduction in student numbers and therefore fees for the undergraduale Degree programme. Investment income fell by 6Q/o to £145,384 (2022123: £154.888). The restricted fund income of £111,832 (2022123: £143,701) consisted of resources 8armarked for the Degree and Future Tutor programmes, the RSN Stitch Bank. the Collection and Archive Digitisation Campaigns including a specific campaign regarding the digitisation of the Grove Book, the SchoolslFamily workshops programme and funding for th8 tuition of a student. Restricted expenditure of £173.521 (2022123: £182,891) was incurred against this income and in addition the Embroider a Selfie project. Total expenditure for the year was £3,446,662 {2022123: £3,073,421), an increase of 129/0. The year was the first full year of new staff posts, and increased sales activity in the retail operation drove higher purchases. In addition, travel and accommodation costs were higher than the prior year due to the International Summer School delivered in the US. The Royal School of Needlework 21 Report of the Council Year to 31 August 2024 Net realised and unrealis8d gains on investments tor the year amounted to £358,583 (2022123: £481,906 net realised and unrealised losses). During the year, a tender exercise for the provision of investment management services was undertaken and the decision made to transfer the management of the investment portfolio from JM Finn to CCLA. The transfer of investments took place after 31 August 2024 and has now largely been completed other than one stock for which trading is currently suspended. At the balance sheet date, net assets totalled £4.852.165 {2023: £4,970,099) of which £1,853.02612023: £2,100,301) are unrestricted income tunds. The Royal School of Needlework has an investment of £100 (2022123: £100) in the share capital of RSN Enterprises Limited, a wholly owned company which is incorporated in England and Wales. The net trading result of the company for the year amounted to a loss of £3,063 {2022123: profit of £44,336). Resorv•s pollcy and Ilnanclal poslllon 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. During 2023124, the Council reviewed the Charity's reseNes policy and confirmed it to remain at five months. total expenditure at any on8 time, excluding the additional commitments on the licence at Hampton Court Palace, In Coming to this conclusion, the Council considered the nature of the charity's work and the discretionary nalure of a significant proportion of incom8. Based upon budgeted expenditure levels for 2024125, the maximum expenditure for five consecutive months would be in the region of £1,598,000. The Council is of the opinion thal this provides sufficient flexibility to covar 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 held net assets at 31 August 2024 totalling £4,852,165 {2023: £4,970,999). This is represented by endowment funds and restricted funds of £2,836,226 (2023.. £2,646.096) and £157,993 (2023: £219,682) respectively and designated funds of £158,527 (2023: £701,126), After d8ducting funds represented by tangible fixed ass8ts and shareholders, funds, this leaves free reserves at 31 August 2024 of £1,629.357 (2023: £1,366,807), which is in excess of the target level of £1,598,000 by £31,357. The Council is of the opinion thal the level of funds overall is satisfactory and d08s not cast doubt on the ability of the charity to continue as a going concern. The Council has continued to formally designate £158,527 towards the planned developments within th8 Strategic plan (2023: £701,126). During the year the Council made the decision to undesignate £542,000 of funds previously designated for the Futures campaign in the light of the deficit for the year. The Council will review the designation of funds on an ongoing basis. The lunds that are designated at th8 balance sheet date are for the 150 Forward project and the digitisation of the archive and collection. Investment pollcy and performance The Royal School of Needlework 22 Report of the Council Year to 31 August 2024 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 fiv8 years, a total retum on capital invested that reflects the risk appetite. The Trustees have a moderate I medium attitude to risk, with the level ol risk mitigated by having a diversified portfolio of assets. During the year the portfolio was managed on a discretionary basis by the investment manager, JM Finn. Since the year end, the investment portfolio has been transferred to CCLA for investment in a pooled fund. of which the investment aims and decisions are compatible with the RSN'S investment policy and its 8nvironmental, social and governance standards, covering the following areas: Protection of the global environment, its climate and its biodiversity including the reduction and f uture elimination of fossil fu818xploration and production; Promotion of human rights, including but not limited to the equality of gend8r, race and sexuality. and Promotion of good business ethics and good employment practices. 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 investmenl manager to ensure that the balance of the portfolio remains appropriate particularly given political uncertainties and the ongoing potential for market volatility. During the financial year, the market value of the investment portfolio strengthened in each of Ihe second, third and fourth quarters, with the UK, and towards the end of the year, the UK Gilts in the portfolio strengthened following the interest rate cut in August 2024 and expectation of further interest rate cuts. At the charity's 31st August 2024 year 8nd, the investment portfolio was valued at £5,258,977. having increased +9.5°/0 in total return terms over the past 12 months. This is behind the ARC Steady Growth Index return ol +12.4°/o and the 70°/0 ￿SE All-Share1300/. FTSE UK Gilt Index return of +13.99/0, while CPl+3 /0 returned The portfolio has a 13 year annualised return of +6.10/0 Per annum, in-line with the comparators. The UK markets have suffered a steep fall in confidence following the increase to Employer National Insurance costs in the October 2024 budget, together with higher than expected inf lation, which is making further interest rate cuts unlikely. STRUCTURE, GOVERNANCE AND MANAGEMENT Constitution and Legal Status The Royal School of Needlework was founded in 1872 and incorporated in England and Wales, on 16 April 1878 as a company limited by shares. The Trustees are the shareholders, and their liability is limited to the value of shares held. The RSN is also registered as a charity with the Charity Commission, under the number 312774. Our Memorandum of Association sets out our objects and powers, and we govern in accordance with our Articles of Association. The Royal School of Needlework 23 Report of the Council Year to 31 August 2024 How we are govemed The Board of Trustees, or 'Council'. is the RSN'S governing body and has legal. financial and managerial responsibility. Council members are directors forthe purpose of company law and trustees for the purpose of charity law and are referred to as both in this report. Council is responsible for overseeing the establishment of strategy, policy, and the control framework. Key governance documents ar8 reviewed and updated at the start of each year and policies are reviewed on a rolling cycle or mor8 frequently as needed. Council comprises 12 members including the Chair of Trustees and Honorary Treasurer. Those who served during the year and up to the date of Ihis report are listed on page 28. Trustees confirm that they have due regard for the Charity Commission's guidance on public benefit and that the required statement appears on page 29 of these financial stat8ments. Trustee recruitment, inductbon & tralnlng Council members complete a skills audit periodically to record and review their expertise relative to the RSN'S strategic needs. Outputs are used to help inform future recruitment and trust8e appointmenls. Positions are advertised broadly, and a trustee panel shortlists and int8rviews applicants belore making recommendations to the full Council. Truslees use external advisors where appropriate. Trustees are appointed by Council for a thre8-year term and can be re-elected for a further two terms. On appointment, they are provided with Charity Commission guidance on trusta8 roles and responsibilities, and documents such as the RSN'S annual report. strategic plan and governance framework and code. They are invited to spend time with senior managers and staff learning about and seeing the FISN in action. Trustees may also observe Committee meetings (see page 25} if they are not appointed members, ensuring they have the infomation and tools needed to fulfil their legal obligations and play an effective role within the governing body. Training is available to Trustees as required. A number of online training resources were undertaken during the year. All trustees are provided with any new relevant information and publications as they become available. Meeting Procedures Formal agendas, papers and reports are supplied to Trustees in a timely manner, prior to Council meetings. Briefings are also provided as needed. Reports include financial status and informalion such as peflormance against targets, proposed capital expenditure, qualty and personnel related matters such as health and safety. Councll Procedures and Decision-making Trustees understand their responsibilities, including their duty to act in the RSN'S best interests and to use reasonable skill and care to make balanced and informed decisions tor the RSN to further its purpose and mission. The Royal School of Needlework 24 Report of the Council Year to 31 August 2024 They consider current factors and likely consequences, and potential impacts decisions may have now and in the future. The Council met formally seven times in 2023124 and held a Strategy Day with the senior management to review performance and shape future activity and the resources needed to deliver this. An additional meeting was held to discuss the recruitment and appoinlment of a new Chief Execulive and, following consultation with, and subsequent approval from, The Charity Commission {CCI. an EGM was held to approve a change to our governing document to allow us to provide payment to Trustees in return lor goods or services. This amendment was sought in particular regard to the Fragile Threads programme as we did not have the capability or capacity within our staff team to provide the visioning and strategic development needed but did have this expertise on our Board. As it was outside the normal scope of a Trustee's role we believed it was appropriate to provide payment and did so following best practice and relevant CC guidelines. We are grateful to our Trustee for undertaking this significant task at a fee well below market rate. A separate governance framework was developed for this work with delegated aulhority to oversee development within th8 scope and budget approved by full Council. Th8 RSN has a strong and independent non-executive element; no individual or group dominates decision-making procèss. We consider each non-executive member is independent of management and free from business or other relationships which could materially interfere with exercising their independent judgement. There is a clear division of r8sponsibility as the roles of Chair of Trustees and Accounting Officer are separate, Council oversees the RSN'S kay management which has responsibility for operations. Employe•8 During the year a new Chief Executive was recruited, with her employment starting on 30 September 2024. Two new members of the senior management t8am (Finance Director and Diractor of Staff and Customer Engagement) also joined. Council sels th8 Chief Executive's salary and staff salaries are considered annually by the Finance and Investment Committee following performance review and approved by Council. At 31 August 2024, the RSN employed 13 full time and 24 part-time staff, core teams of 5 part time slitchers in the Studio and 22 part-time tutors. In addition. around 20 volunteers assisted with the library, donated items, Research, Studio Talk and Tours, marketing and data entry. The RSN also used the services of a number of self-employed stitchers and tutors. Committees Council delegates specific responsibilities to three committees detailed below which report back to Council and may make recommendations. The Royal School of Needlework 25 Report of the Council Year to 31 August 2024 Finance and Investment Committee The Finance and Investm8nt Committee {F&lJ usually meets four times a year and provides oversight for all aspects of the RSN'S finances, including financial management, financial policies, monitoring the integrity of the RSN'S financial stat8ments, the effectiveness of financial controls with regard to internal risk assessment, th8 performance and objectivity of 8Xternal auditors, the mitigation of risk by insurance and the performance of investments. F&1 members are also the directors of RSN Enterprises Limited. Education Committee The Education Committee had its first full year in 2023124 and met three times. This will increase to four times going forwards to give greater scrutiny to our educational activities, results and developments. It is responsible for overseeing academic quality and standards across education and learning activiti8s and for monitoring and assuring compliance with Oflice for Stud8nts conditions or registration. Tutor and student representatives are invited to join meetings. The committee also has an external independent educational advisor and we are grataful to Stuart Nicholson who filled this post in 202312024. Fellow8hlp Committee A committee was established to oversee the newly fomied RSN Fellowship programme including Fellowship experience, setting and maintaining standards, approval of Fellowship applications and annual activity. It met formally three times. Fellow representatiV88 are invited to join meetings. Trading subsidlary The RSN has a wholly owned trading subsidiary RSN Enterprises Limited, a company incorporated in England and Wales with a shar8 capital of £100. Its principal activity is to undertake the commercial and retail activities of The Royal School of Needlework. It comprises the RSN Studio, and our retail business, 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 £3,063 (2022123.. profit of £44,336). This report was approved by th8 Council on 51h February 2025 and signed on its behalf by: P Wood Chair of Trustees R Harris Chief Executive The Royal School of Needlework 26 Statement of Corporate Governance and Internal Control Year to 31 August 2024 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 2023 to 31 August 2024 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; Having due regard to the UK Corporate Governance Code 2018 in so far as it is applicable to the Higher Education Sector. 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 th8 UK Corporate Governance Code. We have reported on our Corporat8 Governance arrangements by drawing upon best practice available, including those aspects of the UK Corporate Governance Code thai we consider relevant to the Higher Education Sector. The Trustees recognise that, as a body entrusted wilh both public and private funds, it has a particular duty to observe the high8St standards of corporate governance at all times. Legal StsIu8 The Royal School of Needlework is a registered charity and a private company limited by shares. Tha trustees are the shareholders and their liability is limit8d to the value of shares held. The Trustees, who are also Council Members and referred to as both in this report, confirm that they have due regard for the Charity Commission's guidance on public benefit and that the raquired statement appears elsewhere within these financial statements. PATRON, PRESIDENT AND BOARD OF TRUSTEES Patron: Her Majesty Queen Camilla President: Her Royal Highness The Duchess of Glouce81er Following a major review of mor8 than 1,000 Royal Patronages and charity Presidencies, Her Majesty The Queen has retained her Patronage of the RSN which began in 2017. Her Royal Highness The Duchess of Gloucester is our president and has supported the RSN since the 1990s. The Royal School of Needlework 27 Statement ol Corporate Governance and Internal Control Year to 31 August 2024 The Board of Trustees Council Members (who are also Trustees of The Royal School of Need18work for the purposes of charty law) are shown below and except for any instance m8ntioned have served throughout the year. Counell mambers {Dlroctor8) Appointed l Retlrod Ms Pip Wood (Chair of Trustees) Ms Louisa Chrislofidou, Prol Patsy Cullen. Ms Victoria Farrow x+ Dr Paula Leftwi¢hX+ Mr Peter Mila Miss Sarah Mumford. Mr Keith Pickard (Honorary Treasurerl'+ Ms Clara Poon Appointed 9 October 2024 Appointed 28 September 2023 Ms Julie Richards Ms Eleri Lynn. Prof Dominic Twaddle. indicates members of th8 Finance and Investment Committee, which met five times during the year under the chairmanship of the Honorary Treasurar. indicates members of the Education Committee which met thrae times during the year under the chairmanship of Prof Patsy Cullen. + indicates members of the Fellowship Committee which met thrée times during the year under the chairmanship of the Director of Education. During the year working parties comprising Trustees and statt looked at the d8V8lopment of Fragile Threads, a new strategic approach detailed on page 20. Board of Tru8tees' interests All Council Members at 31 August 2024 held one £10 share (2023.. one £10 share) in the capital of the charitable company. The Finance Director maintains a register of financial and personal int8rests of the members of the Council. This can be obtained by contacting Rebecca Turn8r at the RSN'S registered office (see page 1). The Royal School of Needlework 28 Statement of Corporate Governance and Internal Control Year to 31 August 2024 KEY STATEMENTS AND POLICIES Public Benefit Our Annual Report demonstrates the depth and breadth of activities undertaken during the year to furth8r our charitable purpose for public benefit. The RSN preserves the heritage and leads the development of the art of hand embroidery primarily through education. This includes practical cours8S to pass on the heritage and skill, as well as imparting knowledge of historical significance and Context of many hand embroidery traditions and practices through events such as exhibitions, talks and 'taster' sessions. We aim to inspire and innovate, attracting beginners through to expert stitchers, and invest in training professional hand embroiderers and tutors to the highest standards to share skills and expertise. The practice of hand embroidery provides significant mental health and wellbeing benefits and w8 are committed to providing the widest access possible to our activities. We have invasted in the provision of significant online resources. the RSN Stitch Bank IRSNSB) (see page 141 is free to all and provides detailed instructions and videos on how to embroider nearly 500 stitches across a broad range of techniques. It is becoming established as the online source of information on stilches and is used extensively by stakeholders such as students, curators, historians of stitch and practitioners for a wide range of purposes including identifying and ressarching stitches, and as a teaching aid. The RSNSB is linked lo items in our Collection and Archive. This year we digilised the first 100 objects and continue to add pieces as quickly as w8 can. The two resources complement each other showing the stitches in detail and their application in historical pieces. The RSN complies with its duty, under Section 17 of the Charities Act 2011, to show due regard for the Charity Commission's general guidance on public benefit. Fundraising declaration Fundraising continues to be an ongoing challenge, in a climate of social change and economic uncertainty, and we are really grateful to all our donors for their continual and valuable support. Fundraising events included the Sip and Stitch week in November 2023, attended by many RSN Friends and Supporters, which raised funds for the RSN Stitch Bank. Legacies: we are extremely grateful for the legacy from the estate of Marjorie Piper. Campaigns: thank you to all the Friends who supported our Grove Book campaign and to raise funds to digitlS8 our Collection and Archive. Bursaries: this year we were ab18 to raise over £50,000 for our Bursary fund which will support our students through their studies at the RSN. The Royal School of Needlework 29 Statement of Corporate Governance and Internal Control Year to 31 August 2024 We would like to thank all Major Donors to the RSN including Dorothy Jones, the Worshipful Companies of Broderers. Dyers. Girdlers. Gold and Silver Wyre Drawers, Haberdashers, Needlemakers and charitable trusts including The Coats Foundation Trust, The Honourable Society of Knights of the Round Table. the Pitt Rivers Trust. The Arts Society, The Radcliffe Trust, The H8adley Trust, Newby Trust, Lord Barnby's Foundation, SE Franklin's Charitable Trust Number 3, Trapp Family Foundalion and The Henry Lumley Charitable Trust. In undertaking its fundraising, the RSN abides by the codes of the Fundraising Regulator and the GDPR requirements and removes from any appeal any supporter who requests this. This yaar the RSN received no fundraising complaints. The following statement is provided to enable readers of our Annual R8POrt and Accounts to bett@r understand our governance and legal structure and covers the period from 1 September 2023 to 31 August 2024 and up to the date ol the approval of the annual r8POrt and financial statements. The RSN endeavours to conduct its business. 1. Having due regard to the UK Corporate Govemanc8 Code 2018 in so far as it is applicable to the Higher Education Sector. 2. Complying with Office for Students on-going conditions or regulalions and terms of conditions of funding and 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 Gov8rnance Code that we consider relevant to the Higher Education Sector. As a body entrusted with both public and private funds, trustees recognisa they have a particular duty to observe the highest standards of corporate governance at all times. Statement of the Councll'8 re8pon8ibilitie8 Council Memb8rs are responsible for preparing the report of Council and financial statements in accordanca with applicable law and United Kingdom Accounting Standards (UK Generally Accepted Accounting Practicé). Company law requires 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 pr8paring these financial statements, Council is required to: select suitable accounting policies and 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 R8POrting Standard applicable in the UK and Republic of Ireland IFRS 102); make judgements and estimates that are reasonable and prudent. The Royal School of Needlework 30 Statement of Corporate Governance and Internal Control Year to 31 August 2024 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 inappropriat8 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 it to ensure financial statements comply with the Companies Act 2006 and the Charities Act 2011. It is also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for prevention and detection of fraud and other irregularities. Each Council Member confirms that: so far as they are aware, there is no relevant audit information of which the charitable company's auditor is unaware., and they have taken all steps they ought to have taken as a trustee lo make themselves aware of any relevant audit information and to establish that the charitable company's auditor 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. Council is responsible for the maintenance and intègrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom govarning the preparation and dissemination of financial statements may differ from legislalion in other jurisdictions. Council Performance Council has made a strong contribution to performance in 2023124 through the setting of challenging targets; regular analysis, scrutiny and challenge. and strong pertormance management at Council meetings. Trustees are pro-active in their oversight and involved in planning and discharging Council business. They regularly review their own performance and governance processes and implement improv8ments if required. The Chair has a regular individual pertormance review. The Royal School of Needlework 31 Statement of Corporate Governance and Internal Control Year to 31 August 2024 STATEMENT OF INTERNAL CONTROL Scope of responsibility Council is ultimately responsible for the RSN'S syst8m of internal control and for reviewing its effectiveness. Council delegates day-to-day responsibility to the Chief Executive, as Accounting Officer, for maintaining a sound internal control system that supports the achievement of policy aims and objectives, whilst safeguarding public funds and assets. The Chief Executive is also responsible for reporting to Council any matarial w8aknesses or breakdowns in internal control. The purpose ol the 8y8tem ol internal control The system of internal control is designed to manage risk to a reasonable level rathar than eliminate all risk of failure to achieve business objectives and can only provid8 reasonable and not absolute assurance of effectiveness against material misstatement or loss. It is bas8d on an ongoing process designed to identify and prioritise risks, evaluate likelihood of their being realised and the potential impacts, and manage them efficiently, ettectively and economically. This system has been in place for the year ended 31 August 2024 and up to the date of approval of the annual report and financial statements. Ri8k managemenl The Council and senior managers have reviewed the principal financial, reputational, operational and governance risks that might impact the RSN during the year, and updated the risk register accordingly. The review enables reflection upon the impact of both internal and external changes and the longer-term impact they may have, ensuring mitigation is updated to respond to changes. While known risks can be mitigated there will always be unanticipated events. The Finance and Investment Committee takes the lead in reviewing financial risks, aiming to minimise and mitigate any that appear or will potentially impact the RSN and that are within its power to affect. We have reviewed internal financial controls and are satisfied these are appropriate in minimising any risks to funds. The top thre8 risks that could have a negative impact on achieving our strategic plan have been identified as: Meeting the financial and fundraising targets in the current environm8nt, especially at a time of investment for the RSN. The threat of cyber-crime and its potential to impact the RSN'S activities. Failure to develop successful new income streams. The Royal School of Needlework 32 Statement of Corporate Governance and Internal Control Year to 31 August 2024 Review of effectiveness As Accounting Officer, the Chief Executive has responsibility for reviewing the eff ectiveness of the system of internal control. This is informed by: the work of the extemal auditors. the work of RSN senior managers responsible for developing and maintaining the internal control framework. and comments made by Ihe auditors in their management letters and other reports. Ther8 are no signrficant internal control weaknesses reported for the period. The senior management team receives reports setting out kay performance and risk indicators and considers possible control issues brought to its attention by early warning mechanisms, which are embedded within the departments. The senior management team and the Finance and Investment Committee also receive regular r8POrts, which include recommendations for improvement. We regularly consider risk and control and receive reports thereon from senior management and the Finance and Investment Committee. The emphasis is on obtaining the relevant degree of assurance and not merely reporting by exception. At our December 2024 Council meeting. we carried out our annual assessment for the year ended 31 August 2024 by considering documentation from the senior management team, and taking account of events since 31 August 2023. Based on this and reports by the Chief Executive, we are of the opinion that the RSN has an adequate and eff ective framework for governance, risk management and control to manage achievements of objectives for the year ended 31 August 2024 and we have fulfilled our statutory responsibility for "the effective and efficient use of resources, the solvency of the inslitution and the safeguarding of their assets" Regularity, propriety• and compllance We have considered our responsibility to notify the Office for Students of material irregularity, impropriety and non-compliance with Off ice for Students terms and conditions of funding. We confirm, on behalf of the RSN, that after due enquiry and to the best of our knowledge, we b81iev8 we are able to identify any material irregularity or improper use of funds by the RSN. or material non-compliance with terms and conditions of funding under our 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. 11 any instances are identified after the date of this statement these will be notifi8d to the Office for Students. The Royal School of Needlework 33 Statement of Corporate Governance and Internal Control Year to 31 August 2024 Going Concern Details on the Board's going concern assessment are set out on page 44. Approved by order of the Board of Truste8s and signed on its behalf by: P Wood Chair of Trustees R Harris Chief Execulive Date: 5th February 2025 The Royal School of Needlework 34 Independent auditor's report Year to 31 August 2024 Independent auditor's report to the Members ol The Royal School of Needlework Opinion We have audited the financial statements of The Royal School of Needlework (th8 'parent cfvaritable company,) for the year ended 31 August 2024 which comprise the consolidated statement of financial activities, the consolidated and parent charitable company's balance sheets. the consolidated slatement of cash flows, the principal accounting policies and the notes to the financial statements. The financial r8porting fram8work that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting PractiC81. In our opinion, the financial statements: • give a trua and fair view of the stale of the group and parent charitable company's affairs as at 31 August 2024 and of the group's income and expenditure for the year then ended. • have been properly prepared in accordance with Uniied 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 accordanca 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 meet the requirements of the Office for Student's Accounts Direction. We have nothing to report in respect of the following matter in relation to which the Ofs Accounts Direction requires us to report to you if. in our opinion.. • the charitable company's grant and fee income, as disclosed in note 4 to these financial statements has been materially misstated. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial slatements section of our report. We are independent of the parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. The Royal School of Needlework 35 Independent auditor's report Year to 31 August 2024 Concluslons relaling to going concern In auditing the financial statements, we have concluded Ihat th8 Council Members, use of the going concern basis of accounting in th8 preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that. individually or collectively. may cast significant doubt on the group and charitable parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised lor issue. Our responsibilities and th8 responsibilities of the Council Members with respect to going concem ar8 described in the relevant sections of this report. Othor informatlon The Council Members are responsible for the other information. The other information comprises the information included in the Annual Report and Financial Statements other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwisa èxplicitly stat8d in our report, we do not express any lorm 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 th8 audit or olherwise appears to be materially misstated. It we identify such material inconsistencies or apparent material misstatements, we ar8 raquired to determine wh8ther there is a material misstatement in the financial slatements or a material misstatement of the other information. If, based on the work we have performed, w8 ¢oncludethatthere is a material misstatemenl of this othar information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters pr88cribed by the Compani08 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, which is also the directors, report for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and • the report of the Council, which is also the directors, report for the purposes of company law, has been prepared in accordance with applicab18 legal requirements. Matters on whlch 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. The Royal School of Needlework 36 Independent auditor's report Year to 31 August 2024 Matters on which we are required to report by exception (continued) W8 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 statemants are not in agreement with the accounting records and returns; or certain disclosures of Council Members, remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit; or • the Council Members were not enlitled to take advantage of the small companies, exemption from the requirement to prepare a strategic report. Responslb51itles of Councll Members As explained more fully in the statement of the Council's responsibilities, the Council Members (who are also the directors of the charitable company for the purposes of company lawl are responsible for Ihe 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 stalements that are free from material misstatement, wh8th8r due to fraud or error. In preparing the financial statements, the Council Members are responsible for assessing the group and parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Council Members either intend to liquidate the parent charitable company or to cease operations, or have no realistic allernative but to do so. Auditor's re8pon8lbilitl•8 for th• audit of thè financial statement8 Our objectives are to obtain reasonable assurance about whether the financial stat8ments as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarante8 that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstalem8nls can arise from fraud or 8rror 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 financialstatements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: The Royal School of Needlework 37 Independent auditor's report Year to 31 August 2024 Audilor's responsibilities for the audit of the financial statements (continued) How the audit wa8 considered capable of detecting irregularities including fraud Our approach to identitying and assessing the risks of malerial misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations. was as follows: The engagement director ensured that the engagement team collectively had the appropriate competence. capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; We obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company and determined that the most significant frameworks which are directly relevant to specific assertions in the linancial statements; We focused on specific laws and regulations which we considered may have a direct material 8ffect on the accounts. W8 assessed the extent of compliance with the laws and regulations identified above through making enquiries ol representatives of management and the r8view of minutes of Council meetings. We assessed the susceptibility of th8 charitable company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by.. Making enquiries of where management considers thare was susceptibility to fraud and knowledge of actual, suspected and alleged fraud; and Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: Performed analytical procedures to identify any unusual or unexpected relationships,. Reviewed journal entries to identify unusual transactions. Gained an understanding of the processes in place for the management of the charitable company's investments: and Inv8Stigated the rationale behind significant or unusual transactions (if any). In response to the risk of irregularities and non-compliance with laws and regulations, we designed proc8dures which included, but were not limited to: Review of the minutes of meetings of those charged with governance., Enquiring of management as to actual and potential litigation and claims., and The Royal School of Needlework 38 Independent auditor's report Year to 31 August 2024 Auditor's responsibilities for the audit of the financial Statements (continued) How the audit was considered capable of detecting irregularities including Iraud (continued) Agreeing accounts disclosures to underlying supporting documentation. As a result of our procedures we did not identify any kay audit matters relating to irregularities. There are inherent limitalions in our audit procedures described above. The more removed that laws and regulations are from financial transactions. the less likely il is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detecl than those that arise from error as th8y may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Fleporting Council's website at www.frc.org.ukjaudiiorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the parent charitable company's Members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and the Charity's Council Members, as a body, in accordance with Section 144 of th8 Charities Act 2011 and with regulations made under Seclion 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 charitabl8 company's Council Members those matters we are required to stale to them in an aUdit0￿S report and for no other purpose. To the fullest extent permitted by law, we do not accept or assum8 responsibility to anyone other than the parent charitable company, the parenl charitable company's Members as a body and the parent charitable company's Council Members, as a body. for our audit work, for this report, or for the opinions we have formed. Gumayel Miah. Senior Statutory Auditor for and on behalf of Buzzacott LLP. Statutory Auditor 130 Wood Street London EC2V 6DL Date.. 6 February 2025 The Royal School of Needlework 39 Consolidated statement of financial activities (including the Income and Expenditure Account) Year ended 31 August 2024 2024 Total fund8 2023 Total funds Unrestricted funds Restricted Endowment funds lunds Income and expenditure Notes Income from: Donations and legacies Investments Other trading activities Charitabl8 activities School activities Total Incom• 205.854 145,384 620,756 109,277 315.131 145,384 620.756 201,932 154,888 592,040 1,885,419 2,857,413 2,555 111,832 1,887,974 1,807,188 2.969,245 2,756,048 Expondlturo on: Raising funds Charitable activities Costs ol school aclivrties Total oxpendliuro 748,349 748,349 651,151 2,524,292 3,272,641 173,521 173,521 500 2,698.313 2,422,270 5CK) 3,446,662 3,073,421 Nel •xpendlturo boloro Inv•8tment gain• and1088e8 {415,2281 {61,6891 15001 1477,417) 1317,3731 Realised losses on investments Unrealised gainslllossesl on invèstments 12 13,4391 {3,9031 (7,342) 151,4791 12 171,392 194,533 365,925 1430,4271 N•1 movement In funda {247,2751 161,689 190,130 (118,834) (799,2791 Roconclllatlon ol fund8: Fund balan¢o8 brought lorward al 1 September 2023 2,100,301 219,682 2,646,096 4,966,079 5,765,358 Fund balance• carrled forward at 31 August 2024 1,853,026 157,993 2,836,226 4,847,245 4,966,079 The Royal School of Needlework 40 Balance sheets 31 August 2024 Group 2024 Charlty 2024 2023 2023 Notes Fixed assets Intangible assets Tangible assets Investments 18,360 10 46,782 12 5,258,977 5,324,119 18,360 32,368 46,782 4,959,508 5,259,077 4,991,876 5.324,219 32,368 4,959,608 4,991,976 Currenl a8Set8 Stocks Debtors Cash at bank and in hand 13 14 108,857 128,206 249,776 486,839 94,461 199,323 514,356 808,140 43,869 195,167 199,331 438,367 34,627 258,058 483,395 776,080 Creditor8: amounts falling due within one year Not curr•nt (Ilabllllle8ya88et8 15 (946,091) {829,0171 (883,314) 1785,7151 (459,252) (20,8771 {444,947) (9,6351 Cr•dltor•.' amounts falling due in more than on8 y8ar 17 (12,702) (12,702) Total not asMI• 4,852,165 4,970,999 4,866,570 4,982,341 Repr08ented by: Capltal and re8eTV•8 Called up share Capital Capital r8d8mption res8tve 18 19 220 4,700 4,920 240 4,680 4,920 220 4,700 4,920 240 4,680 4,920 The funds of tho charlty: Unr8Strict8d funds: General fund Designated funds 1,694,499 158,527 1,853,026 1,399,175 701,126 2,100,301 1,708,904 158,527 1,867,431 1.410,517 701,126 2,111.643 22 Endowment funds Restricted funds 20 2,836,226 2,646,096 2,836,226 2,646,096 21 157,993 219,682 157,993 219,682 Total charitable funds 4,847,245 4,966.079 4,861,650 4,977,421 Total funds 4,852,165 4,970.999 4,866,570 4,982,341 Approved by the Council of Members on 5th February 2025 d signed on its behalf by: /A/O P Wood Chair of Trustees K Pickard Honorary Treasurer The Royal School of Needlework: Company Registration Number 00012192 The Royal School of Needlework 41 Consolldated statement of cash flows Year to 31 August 2024 2024 2023 Notes Cash flow8 from op•ratlng acllvltles: Nel cash used in operating activities A {518,282) (145,2331 Cash flows from investing activities.. Investment income Purchase of fixed assets Proceeds Irom the disposal of investments Purchase ot investments Net ca8h provlded by inv88tlng g¢tSvltl88 145,384 154,888 (37,060) (6,880) 977,166 940,828 (821,058) {1,011,521) 264,432 77,315 Cash flows from financing g¢tlvltlg8: New share capital issued I Ir8purchas81 of share capital Capital el8ment of finance lease repayments Not cash (outflowa) I Inllow8 from flnanclng actlvitle8 40 (3,0971 (3,097) 40 Change In cash and ¢8$h equlvalèn18 In Iho year (256,947) 167.8781 Cash and cash equivalents at 1 September 2023 516,212 584,090 Ca8h and ca8h equlvalent8 at 31 August 2024 259,265 516,212 Not88 to the 8ts1ement of cash flows for the year lo 31 Augu812024 A R•¢on¢iliatlon of net movemenl In fund8 to net cash u$•d In operatlng activitie8 2024 2023 Not movement In fund8 (88 per th0 8talém•nt of Ilnanclal acllvlt108) (118,834) {799,279) Adjustment8 for: Depreciation & amortisation charges Donations of shares in specie Gains / Ilossesl on investments Investmènt income Increase in stocks Decrease in debtors Increase in creditors Not cash used in operating activitie8 23,299 (89,361) (358,583) 481,906 (145,384) {154,888) (14,396) 116,926) 71,117 212,034 113,860 118,175 (518,282) 1145,233) 13,745 8 Analysls of cash and cash equivalents 2024 2023 Cash at bank and in hand Cash held by investment managers Total cash and cash equivalents 249,776 9,489 259,265 514,356 1,856 516,212 The Royal School of Needlework 42 Consolidated statement of cash flows Year to 31 August 2024 C Analysis of change in net debl At1 September 2023 New finance leases At31 August 2024 Cash flows Cash and cash equivalents Finance lease liabilities Net debt 516,212 1256,947) 3.097 (253,8501 259,265 (15,916) 243,349 119,0131 119,013) 516,212 The Royal School of Needlework 43 Principal accounting policles Year to 31 August 2024 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 2024. Thè financial statements have been prepared underthe historical cost convention with items recognised at cost or transaction value unless oth8rwise stated in the relevant accounting policies below or the notes to these financial statements. The financial statem8nts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Flecommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 (Charities SORP FRS 1021, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102}, the Charities Acl 2011 and the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements are prasented in sterling and are rounded to the nearest pound. Critical acGounllng 88timate8 and areas of judgement Preparation of the financial statements requires the Council Members and management to make certain judgements and estimatas. The items in the financial stat8ments where these judgements and estimates have been made include.. stock provisions, estimating the useful economic life of tangible and intangible fixed assets and legacy income recognition. As set out in thes8 accounting policies under "going concern" the Council has considered the impact of the current economic circumstances 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 concem basis. 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 Royal School of Needlework 44 Principal accounting policies Year to 31 August 2024 A8se8smenl of going concern (continued) 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 suflicient resources to meet its liabilities as they fall due. The RSN currently has unrestricted reserves that are £31 k above the target level set in its reseNes policy. At the balance sheet date, designated funds were £159k, and any or all ol these funds are able lo be undesignated upon the decision of the Council. The Council is of the opinion that the level of funds overall is satisfactory and does not cast doubt on the ability of the charity to continue as a going concern. Cash flow continues to be monitored closely. 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 2025, the most significant areas that affect the financial position of the charity are maintaining a profitable model of online and in-person classes, the level of donations and legacies, the level of investment return and the performance of the investment mark8ts. Consolidation Consolidated financial statements I'group financial statemenls'} 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 s8parata stat8ment of financial activities for the charity itself is not pres8nt6d 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 linancial activities. A net delicit of (£115,771) {2022123: £843,614 d8ficit) is attributable to Th8 Royal School of Needlework. Income recognitlon Income is recognised in the period in which the charity has enlitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received. Incom8 comprises donations and legacies, grants, inv8Stmant 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 evenl 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. Donations of assets such as shares are recognised at the fair value of the shares at the date of transfer of ownership. Where the shares are traded on a public exchange. the fair value is considered to be the market value. The Royal School of Needlework 45 Principal accounting policies Year to 31 August 2024 Income recognition (continued) In accordance with the Charities SORP FRS 102, volunteer time is not recognised. Legacies are included in the statement of financial activities when Ihe charity is entitled to th8 legacy, the executors have established that there are sufficient surplus assets in the 8State to pay the legacy, and any conditions attached to the legacy are within the control of the charity. Dividend income is r8cognised upon receipt of the dividend paymént. Interest on funds held on deposit is included when receivable and the amount can be maasured reliably by the charity. this is normally upon notification ot the interest paid or payable by Iha bank. Income from school activities is account8d 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. Exp•nditure recognltion Liabilities are recognised as expenditure as soon as ther8 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 raquired in settlement and the amount of the obligation can b8 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 expendilur8 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 charilable activities includes all costs associated with furthering th8 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 fomi of personnel development, financial procedures, provision of off ice services and 8quipment 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 includ8d within expenditure on charitable activities (costs of school activities). The Royal School of Needlework 46 Principal accounting policies Year to 31 August 2024 Intsngible fixed a8set8 Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is calculated, using the straight-line method, to allocate the depreciable amount of the assets to th8ir residual values over their estimated useful lives, as follows: • Software: 3-5 years Tanglble flxed assets Depreciation is provided on all tangible fixed assets at the following annual rales calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life: • Fixtures and fittings Off ice equipment • L8as8hold improvements 109/0 on cost 20.10 on cost 1 OQ/o 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 capitalisad. Heritsge a880t8 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 comménsurate with the associated cost. Further details are disclosed in note 11 to the financial stalements. Inve8tment8 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 inter8St. R8alised 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 slated 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 and goods held for re-sale At purchase cost or at cost of direct materials and 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. The Royal School of Needlework 47 Principal accounting policies Year to 31 August 2024 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 r8ceipt where such discounting is material. Cash at bank and in hand Cash at bank and in hand represents such accounts and instrLJments that are available on démand or have a maturity of less than three months from the date of acquisition. Credltors and provi8ion8 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 sett18m6nt, 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 g8neral fund comprises those monies which may be usad towards meeting the charitable objectives of the charity at the discretion ol the Council. The designated fund comprisas monies set aside out of unreslricted funds forfuture projects or purposes. The restricted funds are monies raised for, and their use restricted to, a specific purpos8, or donations subject to conditions imposed by the donor. Tha endowment funds comprise pemianent 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 studènt scholarships or the general purposes of the charity. The Royal School of Needlework 48 Notes to the financial statements Year to 31 August 2024 Donations and legacies Unrestricted Restricted Endowment lunds funds funds Tolal 2024 2024 Donations Legacies Tolal fund8 153,690 52.164 205,854 109,277 262,967 52,164 315,131 109,277 UnrestrKted Restricted Endowment funds funds funds Total 2023 2023 Donations Legacies Total lunds 111,063 (52,832) 58,231 143,701 254, 764 (52,832) 201,932 143,701 2 Investmenl income Unr8slricted Restricted Endowment funds funds funds Total 2024 2024 Bank and deposit inlerest received Income from listed investments Total fund8 1,724 143,660 145,384 1,724 143,660 145,384 UnrestrKted ReStr￿ted Endowment funds funds funds Total 2023 2023 Bank and d8POSIt int8r8St racaived Incom8 from listed investments Total funds 1,580 153,308 154,888 1,580 153,308 154,888 3 Incomè 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 the company's trading results is shown below. Audited financial statements are filed with the Registrar of Companies. The Royal School of Needlework 49 Notes to the financial statements Year to 31 August 2024 3 Income from Irading activities (continued) RSN Enterprises Limited - Statement of comprehensive income: Total 2024 Total 2023 Turnover Cost of sales Gr088 proflt Other operating income Administrative expenses Operating (lossyprofit Gilt Aid donation to The Royal School of Needlework Retalned (1088yprofit for the financl81 year 612,513 587,577 {484,446) 1428,453} 128,067 159,124 18,714 4,463 (149,844> 1119,251) (3,063) 44,336 (3,063) 44,336 In the year ended 31 August 2024, turnover includes £10,471 12023: £ nil) of income received by RSN Enterprises Limited from the charity. which is eliminated upon consolidation. 4 Income from school activitie$ Income from school activities is mostly unr8Stricted and comprises mainly fees for the Degr88 programme, Certiticale and Diploma programm8, Future Tutors and Short Courses. Income from school activities includes: 2024 2023 Unre8trlctèd fund8 F88 income for taught awards (Higher Education) Fee income from non-qualifying cours8S 1,282,693 1,282,693 1,181,019 1,181,019 Higher Education incom8 from subvcontractual arrangements with other provid8rs Oth8r income from School activities Total unr8strict8d income from school activities 409,956 192,770 1,885,419 456,618 169,551 1,807,188 Rostrlcted fund8 Income for private tuition of individual 2,555 Total income from school activilies 1,887,974 1,807,188 Fee income for taught awards (Higher Education) shows as zero above due to all Higher Education income arriving through sub-contractual arrangements with other providers. The Royal School of Needlework 50 Notes to the financial statements Year to 31 August 2024 5 Expenditure on raising lund3 Unrestricted Restricted Endowment funds funds funds Tolal 2024 2024 Costs of trading subsidiary Investment managers, fees Advertising and literature Fundraising costs Travelling & other Costs Total fund8 621,829 39.473 47,234 35,720 4,093 748,349 621,829 39,473 47,234 35,720 4,093 748,349 Unrestncted R8strict8d Endowment lunds funds funds Total 2023 2023 Costs of trading subsidiary Investm8nt manag8ts' f88S Adv8rtising and literature Fundraising costs Travelling & other costs Total lunds 547, 704 39,6Q4 46,456 13,540 3,447 650, 751 547, 704 39,604 46,456 13,940 3,447 651.151 400 400 6 C08t8 of 8chool activities Unrestricled Restricted Endowment funds funds funds Total 2024 2024 Staff costs Other costs Total fund8 1,697,831 826,461 2,524,292 29,578 143,943 173,521 1,727,409 970,904 2,698,313 500 500 Un￿stnctad R8Strict8d Endowment lunds lunds funds Total 2023 2023 Staff Gosts Other costs Tolal funds 1,501,880 737,499 2,239,379 63,952 118,539 182,491 1,565,832 400 856.438 400 2,422,270 7 Staff costs 2024 2023 Wages and salaries Social security costs Pension costs 1,840,385 133,985 70,796 2,045,166 1.683,421 123,206 62,615 1,869,242 Staff costs by function were as follows: Cost ol school activities Cost of raising funds (fundraising and trading subsidiary) 1,727,409 317,757 2,045,166 The Royal School of Needlework 51 1,565,832 303,410 1,869,242 Notes to the financial statements Year to 31 August 2024 7 Staff costs (continued) The average monthly number of 8mployees during the year was 6412023: 551 and on a full time equivalent basis was 3412023: 31). The number of employees who earned £60,000 or more (including taxable benefits but excluding employer's pension contributions) during the year was as follows: 2024 2023 No. £60,000 - £64,999 £65,000- £69,999 £100,000 - £104,999 £110,000- £114,999 Five Council Members had their 8XP8nses met for travel l accommodation costs incurred in connection with exercising their duties as Council Members in the year totalling £4.236 (2023: £2,1491.No remuneration was paid to the Council Members in the year fortheir duties as Council members. Note 25 below contains information regarding a payment of £20,000 to one of the Council Members in relation to a seniice provided by them. (2023.. none). The key management personnal of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis during the year and the prior year comprised the Council, the Chief Executive and the Senior Management Team of five). The total cost of the remuneration (including taxable benefits, employels national insurance and pension contributions) of the key management personnel for th8 year was £449,173 12023: £396,505). Chi•f Ex￿utIve Ramuneratlon 2024 2023 Basic salary Salary sacrific8 arrangements Pension contribution Total r8mun8ration after salary sacrifice 110,311 (11,031) 16,546 115,826 103,415 18,1851 11,320 108,550 The RSN has given regard to the 'Higher Education senior staff remuneration code. published by the Committee of University Chairs when determining senior stafl remuneration. Staff who are part of the pension scheme operat8 under a salary sacrrfice arrangement where they give up an amount of salary and in return the charity makes an equivalent contribution dir8Ctly into their pension on their behalf. The Chief ExecutlV8's remuneration shown in year was considered and reviewed by the Council. The Chief Executive's basic salary as a multiple of the median of all staff was 2.9 (2023: 2.8). The Chief Executive's total remuneration as a multiple of the median of all staff was 2.9 (2023: 2.8) The Royal School of Needlework 52 Notes to the financial statements Year to 31 August 2024 8 Net incomel{expenditure) before investment gains and losses These are stated after charging: 2024 2023 Depreciation Amortisation Auditols remuneration Charity audit Trading subsidiary audit Other services Lease expenses Land and buildings . Other 18,709 4,590 13,745 12,270 3,655 2,813 10,500 3,325 1.591 216,347 1,938 197,955 13,584 9 Intanglble flxed a88et8 Restricted Computér software Total Grou and Charll Co81 Al 1 September 2023 Additions At 31 August 2024 22,950 22,950 22,950 22,950 Doproclatlon At 1 Septèmber 2023 Charge for year At 31 August 2024 4,590 4,590 4,590 4,590 Not book values At 31 August 2024 At 31 August 2023 18,360 18,360 The Royal School of Needlework 53 Notes to the financial statements Year to 31 August 2024 10 Tangible fixed assets Leasehold improve- ments Fixtures and fittings Office equipmenl Total Group and Charity Co81 Al 1 September 2023 Additions Disposals Al 31 August 2024 150,509 124,782 33,123 (6,9671 150,938 70,386 345,677 33,123 (6,967) 371,833 150,509 70,386 Depre¢latlon At 1 September 2023 Charge for year Disposals At 31 August 2024 150,509 105,457 15,354 16,967} 113,844 57,343 3,355 313,309 18,709 {6,967) 325,051 150,509 60,698 Net book valu88 At 31 August 2024 Al 31 August 2023 37,094 19,325 9,688 13,043 46,782 32,368 The net book valu8 of assets held under finance leases was £15,210 at 31 August 2024 (31 August 2023.. £nill. 11 Heritage a8S•t8 The RSN is rich in heriiage assets comprising embroidered texti18s, designs, company archives, photographs and sludent pieces. The RSN does not generally hav8 the funds to acquire pieces so most of the Collection has been donated. The acquisition policy relates firstly to it8ms that have an RSN connection, then to items of a high standard of work andlor 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 unlil 1960, which have been given back to the RSN by the families. The Archive cornprises 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 1940$ 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 onSy 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 Royal School of Needlework 54 Notes to the financial statements Year to 31 August 2024 11 Heritage assets (continued) 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 full-time 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 the significant costs involved in valuing the charity's collection of historic embroidery would outweigh Ihe ben8fits derived from such an exercise. 12 Inve8tmenls 2024 2023 List8d investments and cash holdings Group total Shar8s in subsidiary undertaking at cost Chorlty total 5,258,977 5,258,977 100 5,259,077 4,959,508 4,959,508 100 4,959,608 The charity owns the entire issued share capital of FISN Ent8rpris8s Limited which is incorporaled in England and Wales. Its registered number is 3158058 and its regist8red address is the same as the RSN. 2024 2023 Aggregate share capital and reserves of RSN Enterprises Limit8d (14,305> {11,2421 2024 2023 Ll8ted Investments & cash holdin Market value at 1 September Additions al cost Donated shares received at mark8t valu8 Disposal proc88ds R8alis8d losses Unrealised gainsl{lossesl Market value al 31 August Cash held by investment managers 4,957,652 821,058 89,361 (977,166) (7,342) 365,925 5.249,488 9,489 5,258,977 5,368,865 1,011,521 {940,828) (51,479) 1430,4271 4,957,652 1,856 4,959,508 The Royal School of Needlework 55 Notes to the financial statements Year to 31 August 2024 12 Investments (continued) Listed investments held at 31 August comprised th8 following: 2024 2023 Fixed interest UK 6qUlties Overseas equities and equity funds Other listed investments 649,247 1,849,019 2,036,935 714,287 5,249,488 597,643 1,661,263 1,748,233 950,513 4,957,652 Listed inv8Stmenls at cost 4,325,272 4,353,934 At 31 August 2024, listed investments includ8d the following individual holdings deemed material when compared with the overall valuation of listed inv8Stments as at that date: P•rconlag• Value Findlay Park Funds JP Morgan American Investment Trust I Shares Cor8 Invesco Nasdaq 260,908 274,390 257,398 251,315 13 Sto¢k8 Group 2024 Charlty 2024 2023 2023 Materials Finished work and goods held lor resale 43,869 64,988 108,857 34,627 59,834 94,461 43,869 34,627 43,869 34,627 14 Debtors Group 2024 Charlly 2024 2023 2023 Trade debtors Prepayments and accrued income Amounts owed by subsidiary company 47,243 80,963 48,683 150,640 43,817 110,820 103,421 258,058 63,9TI 131,190 195,167 128,206 199,323 The Royal School of Needlework 56 Notes to the financial statements Year to 31 August 2024 15 Creditors: amounts falling due within one year Group 2024 Charity 2024 2023 2023 Trade creditors Other taxes and social security costs Accruals and deferred income Finance lease creditor (note 171 135,229 53,624 754,024 3,214 946,091 72,392 32,836 723,789 118,023 33,834 728,243 3,214 883,314 47,883 29,434 708,398 829,017 785,715 16 Deferrnd income (included above) Group 2024 Charlty 2024 2023 2023 Brought lO￿ard at 1 September Deferred in the year Released in Ihe year Carried fO￿ard at 31 August 653,368 570,836 646,603 562,560 436,510 400,261 436,510 400,261 (457,000) 1317,7291 1456,235) {316,218) 632,878 653,368 626,878 646,603 Deferred income is fees received in advance of th8 course taking place and donations received for the following academic year. 17 Creditor8: amounts falling due in more than one year Group 2024 Charlty 2024 2023 2023 Finance lease creditor {see below) 12,702 12,702 12,702 12,702 Liabilities in respect of finance leases fall due as follows: Group 2024 Charity 2024 2023 2023 Within one year (note 151 More than one, but18ss than five years Inole 17} 3,214 3,214 12,702 15,916 12,702 15,916 18 Share capital Issued, called up and fully paid 2024 2023 Ordinary shares of £10 each 220 240 The Royal School of Needlework 57 Notes to the financial statements Year to 31 August 2024 19 Capital redemption reserve 2024 2023 470 Ordinary shares of £10 each {2023'. 4681 4700 4,680 20 Endowment funds A11 Septembgf 2023 At31 August 2024 Investmenl galns Income Expgndilur¢ 2024 Victoria Adams Fund General Endowment Fund Hilda Watson Fund Charrington l Broderers Fund Wendy Hogg Fund HB Allen Fund 1.874.653 513,832 2,890 2,987 17,124 234,610 2,648,096 135,054 2,1)09,707 37,017 550.849 2,898 215 3,102 1.234 18.158 16,902 251.512 190.630 2.836,228 12001 11001 12001 15001 Atl Sapt8mb8r 2022 At31 Augusl 2023 Investmonl Ioss85 Incom8 Exp8ndllure 2023 Victoria Adams Fund General Endowment Fund Hild8 Watson Fund Charrington / 8roderers Fund Wendy Hogg Fund HB Allen Fund 2,043,857 560,210 3,260 3,366 18,888 255, 786 2,885,367 (169,204) 1,874,653 (46,378) 513,832 (270) 2,890 {279) 2,987 {1,564J 17,124 (21,176) 234.610 (400) (238,871) 2,646,096 (100) (ioo) (200J a) The Victoria Adams Fund is an expendable endowment fund for student scholarships and th8 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 l Broderers Fund provid8s prizes for students. e) The Wendy Hogg Fund is an expendable scholarship / prize fund for students. fl The HB Allen Fund provides support for the Future Tutor programma. The Royal School of Needlework 58 Notes to the financial statements Year to 31 August 2024 21 Restricted funds At1 Sapl8mb8T 2023 Transfers between funds At31 August 2024 Investment gains Income Expènditure 2024 Futur9 Tutor Programm6 Degr8e Programme Collectlon & Dlglllsallon Dlglllsalion ol Grove Book Embroider a Selfi8 29,829 47,729 4,632 7,490 129,8291 147,7291 {74,8521 187,867 117,647 7,490 238 1,671 11.4351 111,9971 15,1241 12,5551 Stitch Bank SchoollFamily Workshops Funding lor lullion Othai Raslrlcted Legacy 11,997 7,600 2,555 2.155 4.631 27,989 219,682 27,989 157,993 111.832 1173,5211 Atl S8pt8mb81 2022 Transf8rs batween lunds At31 AugUSI 2025 Investmonl gains Income Expenditure 2023 Janet Chum? Fund Future Tutor Programme Degree Programme ColloGlion & Digifysatlon Embroid8r a Sell18 stitch Bank SchooYFamily w0￿$hop8 Olhar Restrlctad L8g8cy 7,832 (7. 184) (63,200) {54,490) (26,337) (6.625) (21,406) (3,649) (648) 63,200 54,490 1,605 212,599 8,296 187,867 1,671 21,406 2, 155 27,989 219,682 27,989 259,520 143, 701 (182,891) (648) a) The Janet Chum Fund provides support for both the Degree and Future Tutor programmes and was funded by a generous legacy from the estat8 of the late Mrs Janet Churm. b) The Future Tutor Programme Fund specifically provides bursaries, prizes and day-to- day support for the Future Tutor programme and includes restricted donations and legacies from a number of donors. c) The Degree Programme Fund specifically provides bursaries, prizes and day-to-day support forthe Degree Programme and includes restricted donations and legacies from a number of donors. d) 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. e) The Digitisation of the Grove Book Appeal includes donations from RSN Friends, supporters and other donors towards the digitisation of the Grove Book, one of the treasures of the RSN Collection. f) The Embroider a Selfie fund is a project to introduce stitch to young people. The Royal School of Needlework 59 Notes to the financial statements Year to 31 August 2024 21 Restricted funds {continued) g) 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. h) The School/Family workshops started in 2022 to engage young people with stitch at the RSN'S 150th Anniversary exhibition at the Fashion and Textile museum i) The Funding for Tuition restricted fund is income received to fund the privata tuition of a nam8d individual. j) The Other Restricted Legacy Fund relates to a legacy received in 2016117, which will provide support for th8 Future Tutor Programme. 22 Designated funds At1 September N8W 2023 Designalions At31 August 2024 Ulilisedl released 2024 Fulur8s campaign Stitch Bank Collection & Dlgitlsallon 150 Forward 542,000 599 88,000 70,527 701,126 {542,0001 15991 88,000 70,527 158,527 {542,5991 At1 September N8W 2022 Designations At31 August 2023 Utilisedl released 2023 Futures campaign Stitch Bank Collection & Digitisation 150 Forward Website development 570,000 28,029 88,000 170,000 128,0001 147,4301 542,000 599 88,000 70,527 20,000 199,4731 18,0001 {182,9031 8,000 28,000 856,029 701,126 Th8 Futures campaign fund comprises monies set aside for various campaign projects. Given the deficit for the year ended 31 August 2024, Ihe decision was made to undesignate all of the £542,000 brought forward at 1 September 2023. During 2022123. £20,000 was designated for expenditure on the Stitch Bank project to enable it to continue momentum, and the small balance remaining on these funds was used in 2023124. The £88,000 designated in the financial year 2021122 for the Digitisation of the Archive and Collection remains unspent as it is currently being financed with restricted funds. The 150 Fo￿ard fund was designated in the 2021122 financial year Irom funds raised as part of the 1501h Anniversary campaign. The Royal School of Needlework 60 Notes to the financial statements Year to 31 August 2024 23 Analysis of net assets between fund8 Sharg- holders Reslricled funds lunds Un- restrlcled Endowment funds funds Total 2024 Group Intangible fixed assets Tangiblé Ilxed assets Inv8slm8nts Current assets Creditors- amounts falling due within ono yoar Creditors.. amounts falling due in mor8 Ihan one year 18,360 2,665 18,360 44.117 46,782 2,422.751 2,836,226 5,258,977 184,268 297,651 486,839 147,300} 1898.791) 1946,091) 4.920 112,7021 {12,7021 157,993 1,853,026 2,836,226 4,852,165 Total nel assets 4,920 Share- holdarn R8strlct8d lunds lunds Un- r8slrict8d Endowmgnl lunds funds Total 2023 Group Tanglble fyx8dassets Investments Current as$•ts Cr8dltors.' amounts falllng due wlthln one year Total not a$sel$ $2,368 32,368 2,313,412 2,646,096 4.959,508 236,591 566.629 808, 140 (16,909) (812, 108) (829,017) 219,682 2, 100,301 2.646.096 4,970,999 4,920 4,920 ShaTe- holdér$ Reslrf¢lod funds tund$ Un. r8$tric18d Endowment funds funds Total 2024 Charlty Intangible flxed assets Tanglble flxed assets Inv8strnents Currgnl assots Creditors.. amounts lalllng due within one year Cr*Jltors.' amounts falling due in more than one year 18,360 2,665 18,360 44,117 46,782 2,422,851 2,836,226 5,259,077 184,268 249,178 438,366 147,3CQI 1836,0131 (883,3131 4,920 112,7021 (12,702) 157,993 1,867,431 2,836,226 4,866,570 Total net assets 4.920 Shara- holders Rgstrtcted fvnds lunds Un- restricted Endowmenl funds fvnds Total 2023 Charity T8ngiblo fix8d assets Investments Cuffent assets Creditors." amounts falling due within one year Total nef assets 32.368 32,368 2.313,512 2.646,096 4,959,608 236,591 534,569 776,080 (16,909) (768,806) (785, 715) 219,682 2,111,643 2,646,096 4,982,341 4.920 4,920 The Royal School of Needlework 61 Notes to the financial statements Year to 31 August 2024 24 Operating lease commitments As at 31 August 2024, the group and charity had the following future minimum payments under non-cancellable licences and operating leases: Land and buildings Equlpment 2024 Group Op8ralSng lease payments due.. wllhin the next yaai botwggn onè and two years 220,513 227,129 447,642 918 221,431 227,129 448,560 918 Land and buildings Equlpmant 2024 Charlty Op8rallng lease payments due: wlthln thé naxl year between one and fv40 years 220.513 227.129 447.642 220.513 227,129 447.642 L8ndand buildlngs Equlpm8nt 2023 Group Operating lease payments due.. wllhln th8 next year behv8•n th and liv8 y88rs 202.900 403,571 606,471 711 203,611 403,571 607, 182 711 Land and bulldings Equlpm8nt 2023 Chartty Oporaling laas8 payments due.. wlthin the n9Xt yoar behv8en Iwo and flv8 years 202,900 403,571 606.471 202,900 403,571 606,471 The Royal School of Needlework 62 Notes to the financial statements Year to 31 August 2024 25 Related party transactions RSN Enterprises Limited donates any profits via Gift Aid to the charity- During the year RSN Enterprises Limited reported a loss of £3,063. No Gift Aid donation was made during the year as the company has accumulated losses from prior years and no reserves available for distribution (2023.. £nil). During the year, intercompany charges of £3,389 (2023.. £nil) took place between The Royal School of Needlework and RSN Enterprises Ltd, which have been eliminated upon consolidation. At 31 August 2024. £131.190 is due by RSN Enterprises Limited to the charity (2023.. £103,421). Council Members paid an aggregate of £1,065 {2023: £1,821) for classes and events. £1,151 (2023: £222) for Friends, subscriptions at standard un-discounted rates and donations of £320 (2023: £300}. The figures reported in these financial statem8nts includè an amount of £20,000 invoiced by one of the Trustees for a strategic consultancy review. The invoice was paid in September 2024. During the year, the Royal School of Needlework sought and obtained permission from the Charity Commission to change its goveming document in order to allow payment to members of Council where permitted in accordance with the Charities Act 2011. The amendment to the governing document was approved at an exlraordinary general meeting on 19 June 2024. The Royal School of Needlework 63 Notes to the financial statements Year to 31 August 2024 26 Comparalive Slatement of financial activities for the year ended 31 August 2023 2023 Tot81 funds Unr8Stricted fvnds ReStr￿ted Endowmenl funds funds Income and 8XP8nditur8 Notes Incoma from.. Donations and legacffjs Investm8nts Other trading activit￿$ Ch8rit8ble activities School activities Total income 58,231 154,888 592,040 143,701 201,932 154,888 592,040 1,807, 188 2,612,347 1,807,188 2, 756,048 143,701 Expenditure on.. Raising funds Charitable activities Costs of school activit18S Total exp8nditur8 650, 751 400 651, 151 2,239,379 2,890, 130 182,491 182,891 400 2,422,270 400 3,073,421 Net incom81(expenditure) before inv8Stm8nl gains and losses (277, 783) (39,190) (400) (317,373) Reallsed (Ioss88) on investn78nts Unrealised (Ioss8s) on investments 12 (25,893) (69) (25,517) (51,479) 12 (216,494) (579) (213,354) (430,427) N8t movement In fvnds (520, 170) (39,838) (239,271) (799,279) R8conGilialion of funds.. Fund ba18nces brought lorwardat I September 2022 2,620,471 259,520 2,885,367 5,765,358 Fund balances camed fonvard at 31 August 2023 2. 100,301 219,682 2,646,096 4,966,079 The Royal School of Needlework 64