2021-07-31-accounts

ROYAL ACADEMY OF DRAMATIC ART (RADA)

Charity Registration Number 312819

Annual Report and Accounts

Year ended 31 July 2021

Annual Report & Accounts 2020-21

CONTENTS

CHAIR’S REVIEW	2
ABOUT RADA	4
ANNUAL REPORT	6
REVIEW OF PERFORMANCE AND ACHIEVEMENTS	6
WORLD-LEADING TRAINING	7
ANTI-RACISM and EQUITY	13
ACCESS AND PARTICIPATION	14
ESTATE AND OPERATIONS	15
SUSTAINABILITY AND INCOME GENERATION	15
FINANCIAL REVIEW	18
PUBLIC BENEFIT	20
STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL	21
STATEMENT OF TRUSTEES’ RESPONSIBILITIES	28
INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES	29
FINANCIAL STATEMENTS	33
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES	33
GROUP AND ACADEMY BALANCE SHEETS	35
CONSOLIDATED CASH FLOW STATEMENT	36
NOTES TO THE FINANCIAL STATEMENTS	37

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CHAIR’S REVIEW

It is with tremendous pleasure and honour that I write my first annual review as Chair of RADA Council. I have been Chair designate from April, and formally took over in June from my predecessor, Sir Stephen Waley-Cohen, who stepped down after 14 years of dedicated service as Chair and as a member of Council before that.

I am truly indebted to both Stephen and Ed Kemp, who stepped down as Principal in 2021, for all the work they both did for over a decade in ensuring RADA is a world-class drama academy. I cannot thank them enough for the formal, and informal, support they have both extended to me and I recognise my incredibly privileged position to be entrusted to oversee the good governance of RADA.

I want to begin by commending all staff and students for their commitment, fortitude, and skill during these unprecedented and extremely challenging times. It should be a matter of pride that despite the enormous complexities of Covid we were largely able to deliver our worldleading training and all students were able to graduate.

While it has been a challenging time for RADA we do not stand in isolation – we are part of the wider creative industries across the UK in general, and a community of conservatoires in particular. The disruption to our community and industries over the last two years cannot be overstated. When the pandemic began, what many people had hoped would be a temporary change to our way of working and teaching has proved to be ongoing. This will have long lasting effects, leading almost certainly to profound structural and cultural shifts in RADA’s approach to its work.

At the same time we must make sure that the shock of recent revelations of sexual harassment and racism that have affected almost all conservatoires leads to permanent, not just temporary, systemic change to our culture and processes.

For these reasons, and many others, this has been a year of change and challenge for RADA. It has forced us to re-evaluate our key priorities and assess what makes RADA uniquely special. The paradox is that it is only by embracing change and challenging the way we have done things in the past that we will be able to continue our most valued tradition of excellence, for which we are known around the world.

In order to do this we must try to separate practice from principles. We need to identify the core principles that underpin what makes RADA a world-leading, globally renowned conservatoire, and we also need to review our practices, an ongoing and dynamic process that requires constant questioning. This is not an easy process but is essential if we are to address our ongoing challenges and to ensure we are prepared to meet future disruptions and opportunities.

I strongly believe that RADA is the best academy of dramatic arts in the world and “a jewel in the British crown” as we were described by the Universities Minister in 2019. In the last year we have been looking at ways to maintain and build on this position.

One of the keys to RADA’s future, and my first priority as the new Chair, is the appointment of the new Principal. Although outside the period covered by this annual report I am very pleased to announce that at the time of writing we have just appointed a new Principal for RADA. Niamh Dowling joins us from Rose Bruford College of Theatre and Performance in London where she is Head of Postgraduate School of Performance, Design and Technical Arts, and before that she was Head of the School of Theatre at Manchester Metropolitan University. We are delighted at Niamh's appointment and look forward to welcoming her to the academy in June 2022. More information about this appointment can be found on our website. It is important to recognise the amazing work that the Senior Leadership Team has done in the period of working without a Principal, with particular thanks to Helen Slater as interim Accountable Officer and Lucy Skilbeck as interim Chair of Academic Board.

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One of the priorities for the new Principal will be to continue our work to becoming a truly inclusive and anti-racist institution. In the last year we appointed Joan Oliver as RADA’s first Director of Equity to oversee diversity, inclusion and equality. We created new anonymised processes to report racism. Pamela Jikiemi, RADA’s Head of TV, Film and Radio, was appointed to chair the (Re)framing the Future: Decolonising Actor and Technical Training Committee, working collaboratively with students, staff, graduates, RADA Council, industry colleagues and external consultants.

Managing our finances is also a key priority as RADA continues to find itself in a challenging financial position, with our reserves currently at uncomfortably low levels.

We must not only make up for the financial loss that the pandemic has caused, through, for example, our £3.2m Stage Critical fundraising campaign, but also create new funding streams and models of working to ensure our long-term financial stability. Approached correctly the need to find new funding streams and ways of working should be seen as an opportunity to create an even better RADA, not just financially, but creatively, and most importantly for all our students.

A notable example of this can be seen with the growth of RADA Business over the last two years - exploring new opportunities, winning new business and in the process making a considerable financial contribution to RADA as a whole. It should also be stressed that it has been able to achieve this while staying true to our principles and, where appropriate, engaging with both the student and teaching bodies.

I am confident that RADA Business is not the only part of RADA that is rising to the challenge. I should however stress that this is not a “one-year problem” but will require constant reinvention and evaluation of the environment we are working in.

That we have been able to weather all the disruptions of the last year is due in large part to the steadfast support of our many donors and partners and I would like to thank them for their continued generosity and friendship.

I would like to extend particular thanks to our wonderful and long-standing Principal Partner Warner Media, as well as our friends at Santander and AXA XL, and to the Utley Foundation whose donation to our Stage Critical campaign has made such a difference. Thank you also to the Development Board who do so much to support our essential fundraising.

I would like to thank the Council who have selflessly and generously given their time and expertise to RADA, creating the structure and oversight needed to guide the Academy and allow it to operate. I would especially like to thank Stephen Greene who stepped down at the end of the academic year after 9 years on Council including five as Chair of the Audit and Risk Committee, as well as RADA graduates Paul Pyant and Richard Wilson who also stepped down after many years of committed service.

Finally, the future of RADA always rests on the quality of its students and the graduates it produces. I am encouraged that RADA continues to train some of the very best actors and technical specialists in the world. I am confident that the future of Britain’s creative industries is in safe hands.

RADA will continue to innovate and work with partners who share the same principles and vision as us: a proudly British organisation that is internationally facing. A conservatoire that puts the welfare of its students before any industry prizes and accolades. And an Academy that is proud of its history but equally proud of being able to forge a new future.

After one hundred and seventeen years I believe RADA still has its best days ahead of it.

Marcus Ryder Marcus Ryder (Mar 1, 2022 06:51 GMT) Marcus Ryder MBE

Chair of Council

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ABOUT RADA

The Royal Academy of Dramatic Art (RADA) offers vocational training for a total student body of around 200 actors, stage managers, designers and technical stagecraft specialists. We pride ourselves on the exceptional standard of our teaching, and the personalisation of our training which is tailored to the needs of each student.

We seek to train the most talented individuals. We have an impressive track record of graduate employment in theatre, film, television and radio, as award-winners and leaders in their fields: actors, directors, writers, producers, lighting, sound and costume designers, prop makers, scenic artists, stage managers, production managers, and many others.

We also create opportunities for a wider community to engage with our training, through our short courses, access and participation programme, and outreach work.

RADA was established in 1904 by renowned actor-manager Sir Herbert Beerbohm Tree in rooms above His Majesty’s Theatre in the West End: an academy founded by the industry for the industry. We have maintained strong links with the performing arts industries ever since and have built an outstanding reputation as a world-renowned centre of excellence.

Our small student population is a diverse community, united by a shared passion for theatremaking. Our students come from a wide range of backgrounds from all over the UK and internationally.

RADA FACTS AND FIGURES

RADA’s reputation as a world-renowned centre of excellence is based on attracting the very best talent from every part of society and delivering to them the very best training.

We allocate places at RADA on talent alone, regardless of background or circumstance. We offer some form of financial assistance to over 50% of our students.

In 2020-21 we auditioned 4,500 applicants for 28 acting and 32 technical places.

WORLD-LEADING TRAINING

• This year, in the face of the most difficult circumstances, we have delivered at least 35 hours of contact time per week to our 200 students.

• To protect the quality of our training we extended the academic year by a term. We are the only conservatoire in the UK to have taken this step.

• RADA’s specialist training is intensely practical and in addition to their classes with our world-leading faculties, by the new end of the Academic Year, our students had also trained on:

• 13 stage productions

• 6 award-winning short films

• An Escape Room project

• A Son et Lumière project

• Beyond the Canon online festival

• Filmed monologues

• A filmed Tree showcase

• Prize Fights showcase

• All of the students who were due to graduate in 2021 were able to do so.

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• Our students have also had masterclasses and professional development sessions with more than 70 visiting lecturers and professionals, including RADA graduates Imelda Staunton, OT Fagbenle, Cynthia Erivo, and RADA President Sir Kenneth Branagh.

FINANCIAL SUSTAINABILITY

• In order to deliver our world-leading training RADA has to invest at least £9,000 per student per year in addition to the income we receive from student fees and grants.

• Our total annual income in 2020-21 was £9m, of which 67% was self-generated.

• Our finances were hit hard by Covid and apart from a modest amount of furlough we have received no emergency Government funding.

• As a result, our reserves are uncomfortably low, and we are facing further Government cuts and uncertainty.

• We have a robust financial recovery strategy, including our £3.2m Stage Critical fundraising campaign and with RADA Business already returning to growth.

ANTI-RACISM and EQUALITY, DIVERSITY AND INCLUSION

• Our work to become an anti-racist organisation continued and we created the role of RADA’s first Director of Equity to oversee equality, diversity and inclusion.

• Pamela Jikiemi, RADA’s Head of TV, Film and Radio, was appointed to chair the (Re)framing the Future: Decolonising Actor and Technical Training Committee, to work collaboratively with students, staff, graduates, RADA Council, industry colleagues and external consultants.

• We also carried out mandatory training right across the academy on a broad and inclusive range of subjects.

GRADUATES and INDUSTRY

• Our graduates continued to make an enormous contribution to the UK’s £116bn creative industries, and they help to affirm our country’s place on the world stage.

• Our graduates’ contributions were recognised by the industry with a number of major awards including a second Academy Award for Best Actor for Sir Anthony Hopkins for his role in The Father, and the EE Rising Star BAFTA Award for former RADA Youth Company member, the 19-year-old Bukky Bakray, for her role in Rocks. More awards are included later in this report.

• There were honours from Her Majesty The Queen for Sir Jonathan Pryce, Dame Sheila Hancock, Adrian Lester CBE, and Lolita Chakrabarti OBE.

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ANNUAL REPORT

The Trustees present their report and accounts for the year ended 31 July 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the requirements of the Royal Charter, the Charities Act 2011 and the Charities SoRP (FRS102) as well as the disclosure requirements of the Office for Students’ (OfS) ‘Regulatory advice 9: Accounts direction’.

REVIEW OF PERFORMANCE AND ACHIEVEMENTS

Charitable Objectives

The objectives of RADA, as defined by the revised Royal Charter of 20 July 2020, are “to advance the art of the Drama by means of giving instruction in and promoting the study, practice and knowledge of dramatic literature and acting in all or any of its branches exclusively. To promote and supervise such instruction as may be thought most conducive to the cultivation and dissemination of the art of the Drama in the United Kingdom and generally to encourage and promote the cultivation of Drama as an Art throughout the world”.

Strategic aims and priorities for 2020-21

At the end of 2019-20, a year that saw the first five months of the pandemic, we committed to the following strategic aims and objectives for 2020-21:

• Delivering the best possible standard of training, with compliance, student learning outcomes and experience at the centre,

• A sound financial strategy and cost management that does not threaten our ability to deliver the training,

• Driving income and revenue generation,

• Embedding RADA’s anti-racism and equity work through stable leadership, and

• Supporting RADA’s staff, by better resourcing HR and adopting a strategic approach to the people agenda.

Strategic aims and priorities for 2021-22

The key priorities will be to respond to the impact of Covid-19 and our commitment to antiracism and include:

• Ensuring the high standard of training is maintained,

• Developing the training meaningfully in response to changes and expectations from industry,

• Supporting staff and students as we recover and rebuild from the impact of Covid,

• Continued financial recovery through growing self-generated income and managing costs to restore reserves, and

• Continued investment in RADA’s anti-racism and equity work and leadership, to support the creation of an inclusive culture.

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WORLD-LEADING TRAINING

BA Acting

2020-21 was another very challenging year as the effects of Covid were felt within the Academy.

When the January 2021 lockdown began, we moved the in-person training for the spring term into the summer, and the summer term into the autumn, essentially extending the academic year by one term.

We are the only conservatoire in the UK to have taken this bold, complex and expensive decision, which we believe was absolutely vital to preserve the student experience and the quality of our training.

The third years were able to complete their training in August, with some rescheduling of productions, and so graduated as expected. As outlined above we offered them the opportunity to return as graduates to finish a final set of shows in Autumn 2021 to ensure they had the full training experience. 18 of 28 students returned for that final set of shows.

It is worth noting that there was unanimous support for these changes from the acting students and faculty and all changes were approved by our validating university, King’s College London. Student achievement over the course of the year exceeded expectations, especially given the circumstances.

The third years achieved a slightly higher than usual average grade having excelled in their film and stage productions. This was recognized by the external and internal examiner as appropriate for the level of work achieved.

We had to work assiduously to engage with the industry, especially agents and casting directors, who themselves faced an extremely difficult year with an uncertain outlook. The industry responded positively to the in-person and streamed opportunities to see our students’ productions. For the first time we held the short film screening in a West End cinema, presented by RADA President Sir Kenneth Branagh, and attended by industry figures including RADA Council member Mike Leigh.

Second- and first-year students developed well over the year, with progress as expected in the Autumn term and exceeding expectations when we returned in April after our term off.

Again, as we look at the effectiveness of the new programme with this second cohort to have followed it throughout, it is very encouraging to see that the training is achieving more than expected even in these exceptionally challenging circumstances.

MA Theatre Lab

As with the BA Acting programme, Covid required changes to the teaching schedule. In consultation with students and staff, the incoming cohort (due to start in January 2021) delayed the academic year to begin on April 6. This was to ensure as much in-person teaching as possible. Term breaks were shortened, and the summer term schedule was intensified, including a residency at the Coronet Theatre in Notting Hill. 2020-21 also marked the first running of the new MA Lab course structure.

Due to Covid the 2019-20 cohort extended their study by 4 months and graduated in January 2021. Working in very challenging circumstances the student achievement level was exceptional and a testament to all our staff’s adaptability in transferring some elements of a

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physical course to the digital realm and the institution’s decision to extend the cohort’s study period.

The 2020-21 cohort have demonstrated adaptability and application in their training. Assessment so far indicates the students are achieving as expected.

Admission remained buoyant in 2020-21 for the 2022 intake. There were over 250 applicants for 18 places, an overall increase from previous years. EU applications were lower than previously but there was an increase in diversity within UK applicants and a large increase in applicants from the US and India, especially.

FdA and BA in Technical Theatre and Stage Management, and PgDip in Theatre Costume

Despite the considerable challenges of Covid, 2020-21 was a successful year. Thanks to the resilience, hard work and ingenuity of staff and students alike we were still largely able to deliver our training to RADA’s very high standards and this was reflected in the students’ assessments, which were in line with what we might expect in a normal year.

As an acknowledgement of the reduced practical training time available to final year FdA students as a result of the pandemic, all students meeting the marking criterion for merit in 2020-21 automatically received a conditional offer for the BA completion year (3rd year), commencing in September 2021.

Where in-person teaching was not possible we moved online as much of the training as we could. This led to some exciting new innovations that will bring long-lasting benefits such as working with Capture, software that allows the user to visualise and work in a virtual space.

One of the highlights of the year was our escape room project, Phase One. Escape rooms are a new and innovative entertainment medium where teams of up to six players work together to solve problems. They are a growing trend; many towns across the UK have an escape room on the high street and are a potential future employment opportunity for our students. Because they are technically challenging and innovative across a range of disciplines including sound, lighting, and video, they are a valuable training opportunity.

Following student feedback our professional development offering has been developed into a new programme of training known as L.I.F.E (Legal, Industry, Financial, Employability).

The new programme provides a ‘buffet’ style approach to sessions (with certain aspects compulsory to ensure a baseline of training for all and adherence to the validated credits/course outline). This approach makes most effective use of students’ time whilst allowing for different professional development needs across different disciplines.

RADA is now an institutional member of Stage Sight, an organisation set up to promote diversity and inclusion in our industry’s off-stage workforce. Several TTSM staff are already individual members.

Productions

Changes to the timetable, made due to Covid, interrupted our normal production cycle but we were still able to produce 13 fully staged productions, participate in the Bloomsbury Festival, make six award-winning short films, two digital showcases, and an Escape Room between September 2020 and August 2021. This achievement was made possible through the extraordinary efforts and commitment of staff and students.

The year began with a series of Shakespeare for Young Audience productions, running simultaneously with the shooting of the six short films. A Midsummer Night’s Dream, directed by RADA graduate Funlola Olufunwa opened the year with a vibrant, colourful and very

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welcome return to in-person performance at RADA. This was followed by Max Key’s A Winter’s Tale and Rachel Valentine-Smith’s King Lear, all three featuring very distinctive designs by TK Hay. The performances were open to RADA staff and students as well as invited audiences of young people engaged with our Access and Participation programmes.

The six short films, each taking two weeks to produce, were a diverse and eclectic range covering science fiction, comedy, drama, and mockumentary. The films were Trapstar, written and directed by RADA graduate Beru Tessema; Laid, written by Bernadette Davis and directed by Daniel York Loh; IRL, written by Katie Bonna and directed by Head of Film, TV and Radio Pamela Jikiemi; Wake, written by George Morgan and directed by Anne Mussi; Sketching Dragons, written by RADA graduate Stella Kammel and directed by Paul Shammasian; Venus Flytrap, written by RADA graduate Dexter Flanders and directed by Beru Tessema.

Produced by Pamela Jikiemi, this has been the most successful set of films made in RADA’s history. Four of the six films have received laurels and awards at film festivals including the Cannes Short Film Festival, New York Film Festival, Montclair Film Festival, San Francisco Independent Short Film Festival, London Rocks Film Festival, England Riviera Film Festival, Black Panther International Short Film Festival, APEX-Universal Film Festival and the Phoenix Film Festival. IRL and Laid were both nominated for awards at Cannes with Laid winning Best Sci-Fi film.

We also shot the Screen Moments – a short, filmed monologue professionally produced at RADA by Pamela Jikiemi - for each student to provide a calling-card for their screen work.

In October 2020 MA Lab students took part, as they do every year, in the Bloomsbury Festival on-site in RADA Studios Theatre. Presenting their self-devised Manifesto pieces, these were attended in person and online. They continued their public facing work in December with Margot Monroe’s Neibelungenlied, devised with the company and directed by David Glass, award-winning Director of the David Glass Ensemble.

The interruption caused by Covid between January and March 2021 significantly impacted our production cycle, and we paused our productions until March 2021. This gave us time to improve filming options in order to be ready for online screenings of work to meet industry expectations and government guidelines affecting theatres. Our first project back in March was a filmed duologue showcase introducing the 3[rd] year BA Acting students to the industry. Following this we did a filmed showcase for the BA Acting graduates of 2020, whose showcase had been postponed due to Covid.

We began the production cycle in April with three productions: Against by Christopher Shinn, directed by Psyche Stott, designer Simon Kenny and sound designer Emma Laxton; Consent by Nina Raine, directed by Jasmine Teo; and a devised piece directed by RADA’s improvisation and devising teacher Lesley Ewen, Sunlight is the Best Disinfectant with video design by Nicholas Wong.

This first set of shows was not permitted an external audience so the filming was essential to showcasing. As well as creating content for streaming to ensure we could still engage fully with industry, this new requirement has enhanced student training opportunities including camera operation, editing, lighting and sound for video, and radio mic’ing all of which contribute to their professional portfolios. All productions were filmed and streamed across the year and continue to be so.

The second block of shows: Red Velvet by RADA graduate and Council member Lolita Chakrabarti, directed by Anni Domingo and designed by Natalie Pryce; Pomona by Alistair MacDowell and directed by RADA graduate Jordon Stevens; and The Seagull by Chekhov directed by RADA graduate, teacher and now Director of Equity Joan Oliver with design by graduate Louis Carver and lighting design by graduate Amy Mae, were the first to open to a wider audience to the relief and joy of all involved.

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We concluded an intense period of producing with: Spring Awakening the Musical by Duncan Sheik and Steven Sater, directed by Shiv Rabheru, musical direction by Alex Beetschen and design by Marsha Roddy; Monster by Duncan Macmillan, directed by Dadiow Lin; and As You Like It, by Shakespeare, directed by Jatinder Verma, founder and Artistic Director of Tara Arts and designed by his long-time collaborator Claudia Meyer.

Simultaneous with the final block of shows, Prize Fights - the second year’s first public (family and friends) outing – was produced. Directed by Lucy Skilbeck, Director of Actor Training, and RADA’s fight teaching team led by Philip d’Orleans and Bret Yount.

Technical students stage managed, propped, crewed, clothed, designed, called, operated, dressed, built, and brought to life all the productions listed above with the support and expertise of their teachers guiding them. Their work was celebrated in the Technical Exhibition held at the end of the summer term showing the craft, creativity and artistry of the final year specialist design students, held in the Jerwood Vanbrugh Theatre.

MA Text and Performance / Birkbeck

With regret, we made the decision in 2020 to withdraw from the MA Text and Performance (T&P). This was due to pressure on our resources that meant we were not able to provide a level of facility access and support to the T&P students that met our standards or their expectations. As the programme runs part-time over 2 years (or full time for 1 year), we will be teaching out the course over 2021-22.

Student and Academic Services

Student and Academic Services have been central to delivering the challenging and changing 2020-21 year in partnership with academic staff and students. The department created the day-to-day logistics to develop what became a year of both on-site and online delivery and ensured our students and academic staff received the support they needed. During this extraordinary time, the department also continued to ensure that RADA met its compliance responsibilities to the Office for Students, the Higher Education regulator.

Several innovations were also achieved during the year. Notably, the team implemented an online approach to a full admissions cycle for the thousands of applications received each year and work was also undertaken to review the arrangements for applications for the Disabled Students Allowance. Many of RADA’s academic and student policies were reviewed during the year to provide us with a more comprehensive and transparent approach to the way in which we operate. Regular reports are given to Council on formal student complaints and the use of the ‘report a concern’ tool.

In partnership with students and other staff, the department was also engaged with several strands of work to develop and support a positive student community. These included on-going deliberations about a student association and significant work on safeguarding, student wellbeing and a staff-student relationship policy.

Student Wellbeing

RADA’s Student Wellbeing Service is staffed by the Head of Student Wellbeing and a Student Wellbeing Advisor. 135 students used the service in 2020-21. RADA contracts a freelance Clinical Supervisor/Senior Counsellor, sessional and placement counsellors including eating disorder, and drug and alcohol counsellors. The service has a dietician available and access to other mental health services (psychiatry) when required.

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The fallout of the pandemic continued to disrupt students’ training throughout the year. The service has worked to support and equip students to deal with the challenges and uncertainty involved.

Throughout the year the majority of pastoral care and counselling sessions were delivered online. Engagement with students remained high through a combination of one-to-one support and group workshops.

Graduate Training Programme

In 2020-21 the Graduate Training Programme received financial support including continued support from the Behrens Foundation. Due to the Covid-19 restrictions all sessions were delivered online.

The Graduate Training Programme for 2020-21 began in October 2020 and ran until September 2021. The programme consisted of 24 group sessions and 75 1:1 sessions.

New additions to the programme this year have included Black British Theatre with Anni Domingo, more specialised group movement sessions - Fast Moving and Slow Moving with Shona Morris, Introduction to Directing (Key Skills, Text Analysis, Design and Live Cinema) with Katie Mitchell and Meisner for Screen with Beru Tessema.

This year has also included two Technical Theatre sessions – Looking at Light with Matt Leventhall and a Stage Management Refresher with Ciara Fanning.

Short Courses

During this challenging year RADA Short Courses have adapted to online training.

A number of longer-term and more complex courses, principally the Foundation Course in Acting; The RADA/NYU Shakespeare in Performance program; Acting Shakespeare; The Shakespeare Summer School; and Dynamic Acting for Young Actors were put on hold and alternative courses were designed and delivered online. These online courses included Taking Text Apart; Stanislavski: Physical Action; Shakespeare in Action; and Singing Academy; we devised Fundamentals of RADA: a 4-week online course; evening and weekend courses for online training; and RADA Mind and Body, a series of unique short courses illuminating an aspect of the actor’s art.

We continue to widen the material of our courses and actively to seek out teachers from the Black and Global Majority. On our Winter Shorts programme, 25% of tutors and assisting tutors identified as Black and Global Majority.

Student achievements

There were fewer opportunities for student work to be seen in the wider arena, but nonetheless several students were the recipients of sector-wide and competitive awards:

• Jayden Hendricks-Kynaston (1st year TTSM) won The Black Heart Foundation Scholarship award in October 2020. The Foundation will be supporting her throughout her training.

• Jamie O’Donnell won the Lillian Baylis award (2nd year Acting). The bursary is awarded to drama school students who show promise and the potential to make a significant contribution to theatre.

• Deborah Alli (2nd year Acting) – was awarded the Sir John Gielgud Trust Bursary which supports talented drama school students entering their 3rd year of training.

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• RADA hosts its own Josephine Hart Poetry Foundation Award, for students with exceptional promise in verse speaking and poetry. In 2020-21 we had two recipients, Charlotte Luxton and Louis Goodwin (1[st] year Acting).

Graduate achievements

Graduates from 2020 have secured acting and technical roles at: the National Theatre, the Royal Court, Bush Theatre, Young Vic, Almeida Theatre, New Diorama Theatre, Crucible Theatre Sheffield, Theatr Clwyd, Kiln Theatre, Orange Tree Theatre, Chichester Festival Theatre, the Royal Opera House, The Dominion Theatre, The Savoy Theatre, Wyndham's Theatre, Soho Theatre, BBC TV, BBC Radio, BBC Arts, Apple TV, Warner Bros TV, Channel 4, Channel 5/Sony TV, Disney Plus, ITV, Euras Films, Netflix and Hulu. 5 BA acting graduates are in the cast of Kenneth Branagh’s Golden Globe nominated film Belfast. Tyler Forward was Assistant Editor on My Darling Christopher, made in collaboration with RADA Festival, which won Best International Short Film at Idyllwild international Film Festival 2021, as well as a 2021 OnComm Offie Commendation. Omar Bynon was a recipient of the 2021 Directing/Theatre Making Evening Standard Future Theatre Fund award.

Our alumni continued to win accolades around the world in 2020-21, helping to affirm the UK’s reputation as a creative super-power, and contributing to our £116bn creative industries. Notable awards in addition to those referenced in RADA Facts and Figures include:

• Sir Anthony Hopkins won several awards for his performance in Florian Zeller's The Father, including a BIFA for Best Actor, BAFTA for Leading Actor, in addition to his second Academy Award for Best Actor.

BAFTAs

• Aimee Lou Wood won best Female Performance in a Comedy Programme in her debut role in Netflix's Sex Education.

Olivier Awards

• Indira Varma won Best Actress in a Supporting Role for Present Laughter.

Emmy Awards

• Tobias Menzies won Supporting Actor in a Drama Series and Robert Sterne won Outstanding Casting in a Drama Series for their work in Netflix's The Crown.

British Independent Film Awards

• Dame Glenda Jackson was honoured with the Richard Harris Award for outstanding contribution by an actor to the British film industry.

• Wunmi Mosaku won the Best Actress Award for His House.

Other Awards

• Shaun Parkes won Actor (Male) at the Royal Television Awards for his performance in Small Axe.

• David Harewood won the Variety Outstanding Achievement Award at the Edinburgh TV Festival.

• Mark Rylance was jointly honoured at the Critics’ Choice Awards for Best Acting Ensemble for The Trial of the Chicago 7.

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• Nadia Latif won the Best Director Award for Fairview in the Black British Theatre Awards.

• Tanmay Dhanania was nominated for Best Actor at the New York Indian Film Festival for his work in feature film Nazarband by Suman Mukhopadhyay.

• Kyley Winfield was awarded the Jack Petchey Foundation Leader Award for his work with The National Youth Theatre of Great Britain.

• Lucía Sánchez Roldán and Tom Lightbody were recipients of the MGC Futures bursary.

• Cynthia Erivo was honoured with the Ford Vanguard Award at Essence’s Black Women in Hollywood awards.

ANTI-RACISM and EQUITY

RADA is committed to institution-wide change to create an anti-racist and inclusive culture, where everyone feels safe and is able to speak up. A review of all our policies is underway, and we have adopted a zero tolerance approach to any form of racism, discrimination, bullying and harassment. We have created an anonymised reporting system that allows anyone to report a concern.

In July 2020 we set out our approach to creating change; in August 2020, we published an update on the work of the Anti-Racism Steering Group; and in November 2020 we announced the appointment of Leeds Beckett University as RADA's anti-racism consultants. In January 2021 we established an Anti-Racism Project Group, which maintained the continuity of the work until the appointment of the Director of Equity in September. The group included members of Council, the Senior Leadership team, and other members of staff from across the Academy. We shared regular progress updates on the work that happened across the Academy.

We initiated a (Re)framing the Future: Decolonising Actor and Technical Training Committee, to enrich the curriculum and culture. The work involves collaboration and consultation with a wide range of students, staff, graduates, RADA Council, industry colleagues and external consultants. Teams across RADA are working actively to embed anti-racism in their learning and practice as a priority. We have established an Accountability Panel comprising staff and graduates, to monitor the progress and implementation of the action plan. RADA Council supports the need for change and has created a Council Anti-Racism Group that will champion the work at all levels in the institution.

An Academy-wide training programme was launched in the Autumn term 2020 and continues to be delivered and refined. All staff and students are required to take part in the training, as well as members of Council and the audition panels. This has allowed us to begin establishing a shared framework and language.

Training sessions so far have covered anti-racism, allyship, fragility and understanding the mechanisms of racism; sessions for Black and Global Majority students and staff only; positionality, history, policy and an introduction to Critical Race Theory; Islamophobia; antisemitism, and inclusive dialogue and conflict resolution.

In addition the training programme also included sessions on d/Deaf Awareness; Creative Facilitation; Black Theatre On The Move: Roots & Routes; Asian Theatre Practice; LGBT Allyship; Safeguarding for staff; Tender: Power, Consent & Healthy relationships.

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ACCESS AND PARTICIPATION

RADA’s Access and Participation programme aims to develop better representation in the arts. It has three pillars: Access into HE; subsequent Success of our students; Progression into a sustainable career in the arts. The focus in 2020-21 was Access.

RADA Youth Company, our flagship programme, provided a taster of acting and technical theatre training to 16 young people from across London and the North East of England, all from areas with low rates of higher education participation. RADA is the only drama conservatoire with a youth company.

In 2020-21 the Youth Company took place online. 69% of participants were Black & Global Majority, and 6% of the company identified as care experienced. Two disabled young people joined the Spring Digital Youth Company and two participants received and accepted offers to study at RADA.

From the 2019-20 cohort 62% identified as Black & Global Majority and 50% were from lowincome backgrounds/low participation areas. Four people received offers to study BA Acting at Central, Guildhall, Royal Welsh, and RADA.

The Next Stage: Acting In October 2020 we worked with 10 young people aged 16 – 19 helping them to prepare for drama school application and audition. 90% were Black & Global majority. 70% were from low-income households. One participant has progressed to LAMDA.

The Next Stage: Theatre Production One participant from the 2019 cohort is now at Guildhall and two are at RADA.

Originate Acting Course is a stage and screen acting project for 16 – 21-year-olds. We worked with 18 young people in partnership with Theatre Peckham, Young and Talented, and Guildhall. 60% of participants transitioned into Drama School training.

We also offered wide-ranging support to Lewisham Youth Theatre Techs; Open Door; Intermission Youth theatre; National Youth Theatre Playing Up; The Big House.

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ESTATE AND OPERATIONS

Estate

RADA’s estate began re-opening in July 2020 with Covid-safe procedures in place in time for the new year. Most non-teaching staff continued working from home to reduce the risk of bringing Covid on site. As a result of our cautious approach, there were very few cases and limited impact on stage productions, some of which rehearsed offsite. Professional advice was taken on revising room occupancy, cleaning and ventilation, and the necessary changes were made to provide a safe working environment in time for the new academic year. Protocols were updated as industry practice and government advice developed

The financial impact of Covid, and the new hybrid working patterns, meant that major projects and capital expenditure are largely on hold, with priority going to maintaining a safe environment for staff and students.

IT

Making sure that all staff and students felt connected and informed, and to support effective communication when many people were working remotely for some if not all of the time, we supported staff and students to work and study remotely by providing laptops, webcams, wi-fi dongles and mobile video-conferencing equipment. We continued to improve data security to reflect the new working environment.

Staff development

RADA is committed to developing its staff and enabling them to achieve the highest standards. Unfortunately the annual staff conference could not take place as planned due to Covid-19 restrictions.

Staff development opportunities included the anti-racism and equality, diversity and inclusion training, safeguarding training, Mental Health Awareness, and Covid-19 safety.

We also instituted monthly staff Q&A sessions with the Senior Leadership Team to facilitate effective communication, boost morale, and to encourage open and constructive dialogue between SLT and staff.

SUSTAINABILITY AND INCOME GENERATION

RADA relies on fees from students and grants from the Office for Students (OfS) and UK Research & Innovation (UKRI) to deliver its world-leading under-graduate and post-graduate courses. However, the intensive nature of the work means that the full costs of the core courses have to be subsidised by other sources of income.

RADA’s income in 2020-21 was £9m, 67% of which was self-generated.

RADA’s world-leading training costs at least £9k more per student per year than we receive in student fees and grants.

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----- Start of picture text -----
RADA INCOME 2020‐21
Investments, £103 , 1%
Endowment, £610 , 7%
Donations in kind, £161 , 2%
Other fees etc, £191 , 2%
Furlough, £310 , 3%
RADA Business,
Short courses, £664 , 7% £3,316 , 37%
TOTAL £9m
Fundraising, £973 , 11%
Grants, £960 , 11%
HE Fees, £1,674 , 19%
All figures £000s
----- End of picture text -----

RADA Business

RADA in Business Limited (‘RB’) started the year with the full impact of the pandemic and took steps to reduce costs and return the company to growth. Three new directors were appointed in the year, two non-executive directors (‘NED’) retired, and two new NEDs were appointed. The executive Leadership Team appointed at the beginning of the year continue to lead the business.

All services were delivered remotely as the effects of lockdown persisted. Turnover recovered progressively during the year, but the announcement of the government’s ‘Roadmap’ out of lockdown caused several clients to postpone work in anticipation of a return to in-person delivery. Consequently, the last quarter (to 31 July 2021) was not as strong as it would otherwise have been.

Several staff operated under the Coronavirus Job Retention Scheme early in the year but, after a period of part-time working, returned to full-time in September 2020. All staff worked remotely throughout the pandemic and flexible working will continue to be an important part of our normal practice. The health and wellbeing of our staff continues to be of paramount importance and several team members have become certified Mental Health First Aiders.

An important part of our delivery capacity is outsourced and has been particularly challenged by the pandemic. It is our highest priority to restore this area to full capacity and the return to in-person work is now driving increased demand across all services.

This was a year of considerable activity on anti-racism, equality, diversity, and inclusion (EDI). The RB directors are committed to building an organisation that is truly diverse, inclusive and

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operates to the highest standards in the service of our clients and our team. RB participates fully in RADA’s anti-racism and EDI ethos and strategy and has been able to recruit more broadly as opportunities have arisen within the last year.

We have strengthened RB’s team, introduced new competencies, and repositioned the company to accelerate growth and ensure that we are less dependent on training budgets and better equipped to compete in higher value, longer term opportunities.

Fundraising

This year has proved challenging for fundraising as, like so many, we felt the continued effects of the pandemic. However, we are pleased to have raised £948k over the course of 2020-21 and are hugely grateful to all our donors, old and new, for their support during this difficult time.

We raised £268k in unrestricted funds, used to help cover the costs incurred by our core training. On top of this we secured £680k in restricted income which allowed us to award £525k in student scholarships and bursaries – we give some form of financial assistance to more than 50% of our students. This funding also allowed us to develop and implement our access and participation programmes. We also took part in The Big Give Christmas Challenge and raised £71k against a target of £61k.

Due to the impact of the pandemic on other revenue streams we have launched Stage Critical, a £3.2m campaign to help RADA rebuild, recover and to support our students, and have paused the Attenborough Capital Campaign. We would like to thank supporters of the Attenborough campaign for their understanding including The Carne Trust, Dorset Foundation, Cameron Mackintosh Foundation, and we also thank the Utley Foundation for redirecting their generous support for the Attenborough campaign to Stage Critical where it will be invested in digital video equipment to allow us to film student performances and showcases and share them with a wider industry audience.

We ensure that all restricted income is allocated to the specific project and used solely for the intended purpose of that gift. RADA’s fundraising is conducted by its employees, supported voluntarily by members of RADA Council and the Development Board. RADA follows the Code of Practice set out by the Fundraising Regulator. RADA has not received any complaints about its fundraising in the year. RADA’s fundraising is principally with individuals who have a personal connection to RADA, trusts and foundations and corporate organisations. RADA does not approach the general public for funds or use intrusive or persistent approaches.

Communications and Marketing

A significant focus for communications and marketing during 2020-21 was to position and sell new virtual programmes offered by both Short Courses and RADA Business.

During spring and summer 2021 the team promoted the new RADA Talks series and supported the Development Department with the launch of the Stage Critical fundraising campaign.

Targets for the student recruitment campaign for 2021-22 were aligned with RADA’s Access and Participation plan and targets.

A new promotional image and content policy and waivers were created in consultation with students, in response to the Student Anti-Racism Action Plan.

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FINANCIAL REVIEW

The table below, in the form of an abridged operating income and expenditure account, is a summary of RADA’s financial performance for the years ended 31 July 2021 and 31 July 2020:

RADA Student & other fees HE grants Bursary funding Other fundraising Donations in kind Investment Income Other income Royalties Total Academy Income RADA Business Turnover Expenditure Operating profit Operating costs Bursary costs Donations in kind Net deficit from principal activities Reconciliation to SofA (page 33) Add endowment donations Add TCIF capital grant Deduct depreciation & impairment Total income less total expenditure	2021) £000) 2,464) 942) 450) 498) 161) 103) 65) 25) 4,708) 3,331) (3,141) 190) (8,130) (525) (161) (3,918) 610) 18) (777) (4,067)	2020) £000) 3,580) 897) 666) 610) 285) 130) 100) 78)
		6,346) 4,625) (3,933)
		692) (7,766) (515) (285) (1,528) ‐) 208) (2,933)
		(4,253)

The fall in income that began with the Covid-19 pandemic in March 2020 continued into 202021 causing an operating deficit of £3.9m (2020: £1.5m), that has been funded from our reserves. Covid restrictions reduced our ability to operate RADA Business courses and short courses, and severely limited fundraising opportunities. We committed the resources necessary to maintain the quality of training for continuing students and offer online showcases when public performances were not possible. We also recruited fewer students so that we could maintain distancing in classes.

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Operating costs were higher than in the previous year as we expended funds on our antiracism, equality, diversity and inclusion work. We also incurred higher staff costs (partly offset by furlough grants) as well as cleaning and other Covid-related expenditure.

The depreciation charge is lower than in the previous year as the cost of obtaining planning permission for the Chenies St project (£2.151m) was fully provided against in 2019-20.

In addition to the operating income shown above, we have recognised two generous legacies estimated at £610k, that have increased our endowment funds.

Investment Policy

RADA’s policy is to invest in total return funds that aim to protect capital and provide real absolute returns. To spread risk, the investments are currently with three funds that have different asset mixes that include equities, bonds, gilts, gold and cash. The Academy’s investments are monitored by the chairs of the Finance and General Purposes and Audit and Risk committees, and the Director of Finance and Operations. Any deployment of those funds will be decided upon by a committee formed by those people, the Chairman of the Academy and the Principal.

Reserves Policy

The general unrestricted funds of RADA at 31 July 2021 were £2.3m (2020: £5.7m, see note 20); after a transfer of £0.5m of endowment reserves to income. These are offset by long term liabilities relating to the pension fund (note 7) and the finance lease (note 14). Annual payments towards these continue to be met from operating income. During the year, the minimum term of the finance lease was increased by five years in return for a waiver of rent for one year. This has increased fixed assets and long-term liabilities.

RADA’s total reserves of £35.2m are made up of the following amounts (as shown in notes 19 and 20):

Fixed Assets Endowment Funds Unrestricted Restricted funds Pension scheme liability Long term lease Total	2021) 2020) £m) £m) 32.0) 31.6) Land, buildings & equipment used for charitable purposes 6.2) 5.3) Invested to provide future income 2.3) 5.7) General reserve 0.5) 0.6) Specific project funding (0.5) (1.6) To be met from operating income (5.3) (4.3) To be met from operating income 35.2) 37.3)

Council’s long-term aim is to ensure that RADA has freely available unrestricted general funds equal to its estimate of at least six months’ running costs excluding depreciation and the costs of subsidiary trading and short courses. This is currently estimated at £4.0m. The unrestricted reserves at July 2021 were £2.3m, which is lower than target. The impact of Covid on selfgenerated income meant that the operating deficit in 2020-21 had to be financed from reserves, reducing fixed asset investments (see note 19). During the year we launched a major fundraising campaign, Stage Critical, to help rebuild reserves over the coming years. We will also be applying to OfS for additional funding as a world leading, small, specialist institution.

Going Concern

Council considers that there are no material uncertainties about the Academy's ability to continue as a going concern; although it has long-term liabilities relating to the pension scheme (see note 7) and the lease under which it occupies 20-22 Chenies St (see note 14), the

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Academy expects to continue to meet these liabilities from operating income as it has to date. The core OfS grant is subject to changes in legislation and government policy, but the Academy has the ability to adjust its other expenditure according to funds available. The Academy has drawn on its unrestricted cash and investment reserves as a result of the Covid pandemic since March 2020 but retains £2.3m of unrestricted reserves (see note 20) which will also mitigate the impact of a further operating deficit in 2021-22 as income recovers. Having considered RADA's financial forecasts, the Council has a reasonable expectation that RADA will continue in business for at least 12 months from the date the accounts are signed.

Pay policy for senior staff

Members of Council, who are the charity’s Trustees, and the Senior Leadership Team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Academy on a day-to-day basis. All Council members give of their time freely and no member received remuneration in the year for their work as trustees. Details of Council members’ expenses (if any) and related party transactions are disclosed in note 18 to the accounts.

The pay and conditions of the Senior Leadership Team are reviewed annually by a remuneration committee (made up of the members of the Finance and General Purposes Committee and the Chairman of Council) and normally increased in accordance with average earnings. When senior staff are recruited, remuneration is benchmarked against similar roles in other educational, artistic, charitable or commercial organisations as appropriate.

PUBLIC BENEFIT

RADA’s Council members have had regard to the guidance on public benefit issued by the Charity Commission. RADA is committed to making its training accessible to students from all backgrounds. This ambition is supported by our Access and Participation programmes, and Bursary scheme.

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STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL

The Trustees of RADA acknowledge their responsibility for ensuring that a sound system of internal control is maintained and have reviewed the effectiveness of those arrangements for the period from 1 August 2020 to the date of signing of these accounts. Further details of RADA’s corporate governance arrangements and approach to internal control are set out below.

Legal Structure

RADA is a charity registered with the Charity Commission under registration number 312819. It is governed by a Royal Charter of Incorporation dated 16 July 1920 as amended by Orders in Council dated 22 December 1971, 19 July 2006 and 21 July 2020.

RADA has a subsidiary company, RADA in Business Limited (“RADA Business” or “RB”), company registration number 03999577, incorporated 12 June 2000). RADA holds 100% of the issued ordinary share capital of RB.

From 1 August 2019, RADA became an independently registered Higher Education Provider with the Office for Students (OfS), registration number 10009292.

Organisational Structure

The primary responsibility for RADA is vested in the Council with management of RADA being delegated to the Principal (formerly the Director, Edward Kemp, who left RADA in April 2021) and through them to the Senior Leadership Team. The Council operates a series of committees with relevant senior RADA staff attending and presenting information and updates. After Edward Kemp’s decision to stand down as Director, his authorities under the Scheme of Delegation were allocated to members of SLT pending the appointment of a new Principal. Helen Slater was appointed as interim Accountable Officer and Lucy Skilbeck as interim Chair of Academic Board. Financial and budgetary authorities were transferred to Fraser Jopp.

The Finance and General Purposes Committee is responsible for recommending RADA’s annual revenue and capital budgets to Council and monitoring performance in relation to approved budgets. The Audit & Risk Committee is responsible for monitoring RADA’s system of internal controls, the work of internal and external auditors and the preparation of, and proper disclosure in, the annual Financial Statements. The Nominations Committee is responsible for identifying potential new members of Council. The Remuneration Committee considers the pay and conditions of senior staff and any other remuneration issues as they arise. The Training Committee reviews and makes recommendations on any aspect of the training policy, provision and practice.

These committees agree financial and non-financial targets with the management of RADA and monitor these on a regular basis on behalf of Council. RADA’s management is required to supply further reports to the relevant committee if there is any significant change to the budget or business plan.

The governance of RADA Business lies with the RADA Business Board and this Board monitors the activity of RADA Business through regular board meetings. The leadership team of RADA Business reports directly to the RADA Business Board.

Appointment of Trustees

As set out in the revised articles of the Royal Charter, members of the Council, who are Trustees for charity law purposes, are elected by the Council at a meeting of the Council or by written resolution signed by the majority of members.

Members of the Council hold office for a period of three years from the date of their election. Members may be re-elected for further three year periods provided that they do not serve for

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more than nine consecutive years without a break of at least one year, unless the Council shall by Special Resolution otherwise determine. A Nominations Committee exists to review potential new members, both to replace retiring members and to reflect the needs and requirements of RADA going forward.

This year the first staff members of Council were appointed, one each from the academic staff on Actor Training and TTSM, and one chosen from the rest of the staff body.

Trustee Induction and Training

New members are given agendas, papers and minutes from the previous year’s Council meetings together with documents such as the events brochures, fundraising literature and supporters’ packs and a copy of the last Annual Report and Financial Statements. New members meet key individuals in RADA and on Council to discuss their duties as members. New and existing members are encouraged to attend key meetings, depending on their area of expertise, and performance and fundraising events at RADA. All new members have an introductory session with the Chairman and the Clerk to Council.

Risk Management

The risk management policy of RADA is to adopt best practices in the identification, evaluation and cost-effective control of risks to ensure that they are eliminated or reduced to an acceptable level. It is acknowledged that some risks will always exist and cannot be eliminated. The main risks for RADA are dependence on variable revenue streams in particular as they are currently affected by Covid-19 (for example, RADA Business and short courses) versus a relatively fixed cost base around the three main buildings, and the effects of changes in educational policy (for example, the level and type of grants and fees). The impact of variable income has been mitigated by developing other sources of income and maintaining unrestricted reserves available. Through its professional networks, RADA is kept informed of possible changes to higher education policy and aims to position itself as a key provider of world-leading learning.

There is a material risk to staff and students arising from the prevalence of Covid-19 during the pandemic, and the nature of our training (which relies on a significant amount of in-person work). RADA has taken a very cautious approach to returning to in-person training. We have taken professional advice on risk management, our working practices and procedures. This includes reducing room occupancy, adapting the timetable, keeping students in working ‘bubbles’ and providing remote teaching facilities for teachers who cannot attend in person. We continue to work with staff and students to maintain the safest working practices possible.

The risks are reviewed regularly through a risk register monitored by the Audit & Risk Committee. Council feels that RADA is adapting satisfactorily to the current financial and regulatory environments. The Audit & Risk Committee receives regular reports from management and internal audit on emerging risks and their management. These are reported to Council. The Audit & Risk Committee is responsible for reviewing the effectiveness of RADA’s internal controls, supported by internal audit.

Internal Controls

RADA’s key internal financial controls, which are designed to discharge the responsibilities set out in the Statement of Trustees’ Responsibilities, include the following:

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• regular scrutiny of budgets through quarterly management accounts and detailed transaction listings in meetings with key budget holders;

• two year rolling cash flow projections and reviews of medium-term forecasts;

• regular reviews of key budget and Business Plan milestones by the Council’s Finance and General Purposes Committee; and

• authorisation procedures, separation of incompatible duties, performance and review of key accounting reconciliations and controls over access to systems.

Any system of internal financial control can, however, only provide reasonable, but not absolute, assurance against any material misstatement or loss.

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Administrative Information

Principal Office	62-64 Gower Street, London WC1E 6ED	62-64 Gower Street, London WC1E 6ED
President	Sir Kenneth Branagh
Trustees	The following have served as	members of Council since 1 August 2020:
Chair	Sir Stephen Waley-Cohen Bt.		(to 24 June 2021)
	Marcus Ryder MBE		(joined Council 20 April, Chair from 24 June
			2021)
Members	S J K Barratt
	Josh Berger CBE
	Lolita Chakrabarti
	Ajay Chowdhury		(from 1 October 2020)
	Chipo Chung		(from 1 October 2020)
	Tim Clark
	Paul Clay
	Sir Martin Donnelly
	Buster Dover
	Stephen Greene		(to 24 June 2021)
	Ros Haigh
	Mike Leigh OBE
	Rishi Madlani
	Tanya Moodie
	Maxine Peake
	Paul Pyant		(to 20 April 2021)
	John Romeo
	Tanya Rose
	Robin Soans
	Andrew Sutch
	Tamar Thomas
	Richard Wilson OBE		(to 18 March 2021)
	Professor Michael Worton CBE
Staff Governors	Edward Kemp (Director)		(from 1 October 2020 to 19 April 2021)
(Principal)	Helen Slater (interim Accountable Officer)		(from 19 April 2021)
(Acting)	Mel Jessop		(from 7 June 2021)
(TTSM)	Steve Mayo		(from 7 June 2021 to 24 September 2021)
	Dan Collins		(from 17 December 2021)
(Other)	Michelle Snyder		(from 7 June 2021)
Student Governors	Lara Grace Ilori		(to 1 October 2020)
(Acting)	Marcus Amaglo		(from 1 October 2020 to 18 March 2021)
	Hughie O’Donnell		(from 13 April 2021)
(TTSM)	Jacob Steele		(to 1 October 2020)
	Wilkie Morrison		(from 1 October 2020 to 21 October 2021)
	Skylar Turnbull Hurd		(from 21 October 2021)
Senior Leadership	Edward Kemp	Director and Accountable Officer (to 19 April 2021)
Team	Julie Crofts	Registrar and Clerk to Council (to 15 January 2021)
	Neil Fraser	Director of Technical Training (to 30 September 2020)
	Axa Hynes	Director of Access & Participation (from 17 August 2020)
	Fraser Jopp	Director of Finance & Operations
	Neelam Khosla-Stevens	Interim Registrar and Clerk to Council (from 15 January 2021
		to 31 July 2021)
	Martin Prendergast	Director of Development & Public Affairs
	Mel Purves	Director of Technical Training (from 1 October 2020)
	Lucy Skilbeck	Director of Actor Training
	Helen Slater	Director of Communications & Marketing and interim
		Accountable Officer (from 19 April 2021)

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Sub-Committees of Council Finance and General Purposes Committee Remuneration Committee Chair S J K Barratt Members Paul Clay Andrew Sutch

Audit and Risk Committee Chair Stephen Greene (to 24 June 2021) Ros Haigh (Chair from 24 June 2021) Members R ishi Madlani Tim Clark (from 13 January 2022)

Nominations Committee

Chair Sir Stephen Waley-Cohen Bt (to 24 June 2021) Marcus Ryder MBE (from 24 June 2021) Members Lolita Chakrabarti Ros Haigh Robin Soans

Training Committee

Chairs Robin Soans Tamar Thomas Members Paul Clay Mike Leigh Tanya Moodie Paul Pyant Sir Stephen Waley-Cohen (to 24 June 2021) Richard Wilson (to 18 March 2021)

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Attendance

Attendance at Council and other meetings in the year to 31 July 2021 was as follows:

Name Council F&GP Audit Nominations Training

Sir Stephen Waley-Cohen Bt. (to 24 June 2021) 4/4 2/2 Marcus Ryder MBE (from 20 April 2021) 2/2 1/1 S J K Barratt 4/4 5/5 Josh Berger CBE 3/4 Lolita Chakrabarti 2/4 3/3 1/1 Ajay Chowdhury (from 1 October 2020) 3/4 Chipo Chung (from 1 October 2020) 4/4 1/1 Tim Clark 4/4 Paul Clay 3/4 5/5 1/1 Sir Martin Donnelly 3/4 Buster Dover 4/4 Stephen Greene 4/4 3/3 Ros Haigh 4/4 3/3 3/3 Mike Leigh OBE 4/4 1/1 Rishi Madlani 4/4 3/3 Tanya Moodie 4/4 1/1 Maxine Peake 2/4 Paul Pyant 3/3 0/1 John Romeo 4/4 Tanya Rose 4/4 Robin Soans 4/4 3/3 1/1 Andrew Sutch 4/4 5/5 Tamar Thomas 4/4 1/1 Richard Wilson OBE 0/3 Professor Michael Worton CBE 2/4 Staff Governors Edward Kemp (Director) 3/3 Helen Slater (interim Accountable Officer) 1/1 Mel Jessop (from 7 June 2021) 1/1 Steve Mayo (from 7 June 2021) 0/1 Michelle Snyder (from 7 June 2021) 1/1 Student Governors Lara Grace Ilori (to 1 October 2020) 1/1 Marcus Amaglo (to 18 March 2021) 0/3 Hughie O’Donnell (from 13 April 2021) 1/1 Jacob Steele (to 1 October 2020) 1/1 Wilkie Morrison 4/4

RADA recognises that many of its Council members in the profession may not be able to attend all meetings due to their professional commitments. All members receive all relevant papers in advance of meetings and are able to discuss issues with the Chair, the Principal or members of Senior Leadership Team at any time.

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Professional Advisers

Auditors Saffery Champness LLP Chartered Accountants 71 Queen Victoria Street London EC4V 4BE Bankers National Westminster Bank plc 250 Bishopsgate London EC2M 4AA Allied Irish Bank (GB) 10 Berkeley Square London W1J 6AA Solicitors Womble Bond Dickinson LLP 1 Whitehall Riverside Leeds LS1 4BN Mills & Reeve Botanic House 100 Hills Road Cambridge CB2 1PH Investment McInroy & Wood Ltd Managers Easter Alderston Haddington East Lothian EH41 3SF

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STATEMENT OF TRUSTEES’ RESPONSIBILITIES

Council is responsible for preparing the Report of the Members of Council and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the members of Council (who are Trustees for the purposes of charity law) to prepare Financial Statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities Statement of Recommended Practice (“SORP”);

• make judgments and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

Council is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable it to ensure that the Financial Statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the Office for Students (“OfS”) ‘Regulatory advice 9: Accounts direction’, and the provisions of the Royal Charter. Council is responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Council also has regard to the voluntary code of practice of the Committee of University Chairs, Guide for Members of Higher Education Governing Bodies in the UK.

Council has taken steps to:

• ensure that funds received from the OfS are used only for the purposes for which they have been given and in accordance with the funding agreements and other conditions which each funding body may from time to time prescribe;

• ensure that there are appropriate financial and management controls in place to safeguard public funds and funds from other sources;

• safeguard the assets of RADA and prevent and detect fraud; and

• secure the efficient and effective management of RADA’s resources and expenditure.

For and on behalf of the Members of Council

Marcus Ryder Marcus Ryder (Mar 1, 2022 06:51 GMT)

Marcus Ryder MBE 28 January 2022

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INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES

Opinion

We have audited the financial statements of the Royal Academy of Dramatic Art (the ‘parent charity’) and its subsidiary (the ‘group’) for the year ended 31 July 2021 which comprise the Consolidated Statement of Financial Activities, Balance sheets, Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group and parent charity’s affairs as at 31 July 2021 and of the group’s incoming resources and application of resources for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;

• have been prepared in accordance with the requirements of the Charities Act 2011; and

• meet the requirements of the Accounts Direction 2019 issued by the Office for Students.

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group or the parent charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information

29

and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Report on other legal and regulatory requirements

We are required to report on the following matters by the Accounts Direction 2019 issued by the Office for Students (OfS).

In our opinion, in all material respects:

• funds from whatever source administered by the provider for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislation;

• funds provided by the OfS and Research England have been applied in accordance with the relevant terms and conditions; and

• the requirements of the OfS’s accounts direction have been met.

Matters on which we are required to report by exception

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

• the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or

• the parent charity has not kept sufficient accounting records; or

• the parent charity’s financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

We are required to report by exception, the following matters by the Accounts Direction 2019 issued by the Office for Students:

• Grant and fee income, as disclosed in the notes to the accounts, has been materially misstated; or

• Expenditure on access and participation activities for the financial year has been materially misstated.

We have nothing to report in these respects.

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 28, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is

30

necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors’ responsibilities for the audit of the financial statements

We have been appointed as auditors under the Charities Act 2011 and report in accordance with regulations made under that Act.

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

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

Identifying and assessing risks related to irregularities

We assessed the susceptibility of the group and parent charity’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees and informed management, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charity by discussions with trustees and informed management and updating our understanding of the sectors in which the group and parent charity operate.

Laws and regulations of direct significance in the context of the group and parent charity include the Education Reform Act 1988, the OfS Accounts Direction 2019, the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and guidance issued by the Charity Commission for England and Wales .

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charity’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charity’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and

31

regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Use of our report

This report is made solely to the parent charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the parent charity trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent charity and the parent charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Saffery Champness LLP Chartered Accountants 71 Queen Victoria Street, London, EC4V 4BE Statutory Auditors

Date:

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

32

ROYAL ACADEMY OF DRAMATIC ART

Consolidated Statement of Financial Activities for the year ended 31 July 2021

Note Income & Endowments from: Donations and legacies Charitable activities Other trading activities Investment income Total income 2 Expenditure on: Raising funds - RB expenditure - Fundraising - Investment management Charitable activities Total expenditure 3-6 Total income less total expenditure Net gains on investments 9 Net (expenditure)/income for the year Transfers between funds 20 Net income after transfers Other recognised gains Net actuarial gains on defined pension benefit schemes 7 Total funds brought forward Total funds carried forward All activities derive from continuing operations Net movement in funds	Unrestricted Funds 2021 £000 415 3,471 3,355 21	Restricted Funds 2021 £000 990 18 - -	Endowment Funds 2021 £000 610 - - 82	Total Funds 2021 £000 2,015 3,489 3,355 103	Total Funds 2020 £000* 1,861 4,785 4,629 130
	7,262	1,008	692	8,962	11,405
	2,824 467 4 8,314	- - - 1,406	- - 14 -	2,824 467 18 9,720	3,621 597 18 11,422
	11,609	1,406	14	13,029	15,658
	(4,347) 429	(398) -	678 705	(4,067) 1,134	(4,253) 336
	(3,918) 500	(398) -	1,383 (500)	(2,933) -	(3,917) -
	(3,418) 801	(398) -	883 -	(2,933) 801	(3,917) 481
	(2,617) 10,760	(398) 21,272	883 5,327	(2,132) 37,359	(3,436) 40,795
	8,143	20,874	6,210	35,227	37,359
				-

The notes on pages 37 to 56 form an integral part of these accounts.

• See analysis overleaf.

33

ROYAL ACADEMY OF DRAMATIC ART

Analysis of consolidated prior year total funds

Income & Endowments from: Donations and legacies Charitable activities Other trading activities Investment income Total income 2 Expenditure on: Raising funds - Commercial trading - Fundraising - Investment management Charitable activities Total expenditure 3-6 Total income less total expenditure Net gains/(losses) on investments 9 Net (expenditure)/income for the year Transfers between funds 20 Net (expenditure)/income after transfers Other recognised gains/(losses) 7 Total funds brought forward Total funds carried forward Net actuarial gains on defined pension benefit schemes Net movement in funds	Unrestricted Funds 2020 £000 695 4,577 4,629 36	Restricted Funds 2020 £000 1,166 208 - -	Endowment Funds 2020 £000 - - - 94	Total Funds 2020 £000 1,861 4,785 4,629 130
	9,937	1,374	94	11,405
	3,621 597 5 10,107	- - - 1,315	- - 13 -	3,621 597 18 11,422
	14,330	1,315	13	15,658
	(4,393) 350	59 -	81 (14)	(4,253) 336
	(4,043)	59	67	(3,917)
	18	49	(67)	-
	(4,025) 481	108 -	- -	(3,917) 481
	(3,544) 14,304	108 21,164	- 5,327	(3,436) 40,795
	10,760	21,272	5,327	37,359

34

ROYAL ACADEMY OF DRAMATIC ART

Balance Sheets as at 31 July 2021

Notes Fixed assets Tangible assets 8 Investments held as fixed assets 9 Total fixed assets Current assets Stocks Debtors 11 Cash at bank and in hand Total current assets Current liabilities Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 14 Net assets excluding pension liabilities Defined benefit pension scheme liabilities 7 Total net assets Unrestricted funds Unrestricted revenue funds 19,20 Designated funds Designated revenue funds 19,20 Designated fixed asset funds 19,20 Total unrestricted funds Restricted funds Restricted revenue funds 19,20 Restricted fixed asset funds 19,20 Total restricted funds Endowment funds Endowment funds 19,20 Total endowment funds Total charity funds Represented by:	2021 £000 31,999 8,589	2020 £000 31,626 11,372 42,998 22 1,926 487 2,435 (2,243) 192 43,190 (4,254) 38,936 (1,577) 37,359 (166) - 10,926 10,760 572 20,700 21,272 5,327 5,327 37,359 GROUP	2021 £000 31,991 8,591	2020 £000 31,608 11,374 ACADEMY
	40,588 - 1,951 760		40,582 - 1,336 548	42,982 22 1,591 97
	2,711 (2,303)		1,884 (1,485)	1,710 (1,525)
	408		399	185
	40,996 (5,277)		40,981 (5,277)	43,167 (4,254)
	35,719 (492)		35,704 (492)	38,913 (1,577)
	35,227		35,212	37,336
	(3,468) - 11,611		(3,483) - 11,611	(189) - 10,926
	8,143 486 20,388		8,128 486 20,388	10,737 572 20,700
	20,874 6,210		20,874 6,210	21,272 5,327
	6,210		6,210	5,327
	35,227		35,212	37,336

The financial statements on pages 33 to 56 were approved by Council on 28 January 2022 and signed on its behalf by:

Marcus Ryder Marcus Ryder (Mar 1, 2022 06:51 GMT) S J K Barratt (Mar 1, 2022 06:22 GMT) Marcus Ryder MBE S J K Barratt Helen Slater Chairman of Council Member of Council Accountable Officer

The notes on pages 37 to 56 form an integral part of these accounts.

35

ROYAL ACADEMY OF DRAMATIC ART

Consolidated Cash Flow Statement for the year ended 31 July 2021

Cash flows from operating activities Net cash used by operating activities as shown below A Cash flows from investing activities Other investment income, including rents from investments Purchase of property, plant and equipment Proceeds from sales of investments Purchase of investments Net cash generated by investing activities B Cash flows from financing activities Repayment of amounts borrowed Net cash used in financing activities C Overall cash generated by/(used in) all activities Cash movements Net income as shown in the Consolidated Statement of Financial Activities Adjustments for :- Depreciation charges Provision for impairment Net gains on investment assets Dividends, interest and rents from investments Decrease in stocks Increase in defined benefit pension scheme funds, less unrealised gains (Increase)/decrease in debtors Increase/(decrease) in creditors, excluding loans Net cash used by operating activities A Analysis of cash and cash equivalents Cash in hand at the year ended 31 July Notice deposits - (less than 3 months) Total cash and cash equivalents 15 Reconciliation of net income to net cash flow from operating activities Change in cash and cash equivalents from activities in the year ended 31 July Cash and cash equivalents at 1 August A+B+C Cash at bank and in hand less overdrafts at 31 July	2021 £000 (3,309)	2020 £000 (1,168)
	103 (301) 4,020 (103)	130 (119) 1,249 (112)
	3,719	1,148
	(137)	(123)
	(137)	(123)
	273	(143)
	- 273 487	- (143) 630
	760	487
	2021 £000 (2,933) 777 - (1,134) (103) 22 (284) (25) 371	2020 £000 (3,917) 782 2,151 (336) (130) (4) (244) 1,466 (936)
	(3,309)	(1,168)
	2021 £000 760 -	2020 £000 483 4
	760	487

36

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

1 Accounting policies

Policies relating to the production of the accounts.

Basis of preparation and accounting convention

These consolidated accounts have been prepared on the accruals basis, under the historical cost convention, and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the 2019 Statement of Recommended Accounting Practice applicable to charities (Charities SoRP (FRS102), second edition), and in accordance with all UK applicable law. The accounts are prepared in sterling which is the functional currency of the group and the charity. Monetary amounts are rounded to the nearest £000.

The charity constitutes a public benefit entity as defined by FRS 102; it is incorporated under a Royal Charter of Incorporation dated 16 July 1920 as amended by Orders in Council dated 22 December 1971, 19 July 2006 and 21 July 2020. It is a charity registered with the Charity Commission for England and Wales under registration number 312819. Its registered office is 62-64 Gower Street, London WC1E 6ED.

RADA is also a Higher Education Provider, registered with the Office for Students ('OfS'), with number 10009292.

Group accounts

These accounts consolidate the results of RADA and its wholly owned subsidiary, RADA in Business Limited (RB, together "the Academy"), on a line-by-line basis. A separate Statement of Financial Activities has not been prepared for the charity alone as this is not considered to be materially different to the consolidated Statement of Financial Activities.

Going concern

The Council considers that there are no material uncertainties about the Academy's ability to continue as a going concern; although it has long-term liabilities relating to the pension scheme (see note 7) and the lease under which it occupies 20-22 Chenies St (see note 14), the Academy expects to continue to meet these liabilities from operating income as it has to date. The core OfS grant is subject to changes in legislation and government policy but the Academy has the ability to adjust its other expenditure according to funds available. The Academy has drawn on its unrestricted cash and investment reserves as a result of the Covid pandemic in 2020 and 2021, but retains £2.3m of unrestricted reserves (see notes 19 & 20) which will also mitigate the impact of a material fall in grant or fundraising income. Having considered RADA's financial forecasts, the Council has a reasonable expectation that RADA will continue in business for at least 12 months from the date the accounts are signed.

Critical estimates and judgments

The level of liability relating to the defined benefit pension scheme depends on a number of actuarial assumptions (see note 7). A recovery plan has been agreed with the trustees of the scheme that aimed to eliminate this liability by December 2021. The allocation of support costs between activities is based on assumptions regarding the relationship between activity and cost. Council believe that the assumptions made are reasonable.

With respect to the next reporting period, the most significant area of uncertainty that relates to the carrying value of investment assets is the future performance of capital markets (see the Investment Policy section of the Annual Report for more information).

The accrued income element of major legacy gifts that has been recognised but not received by the balance sheet date relies on third party valuations of the underlying estates which have been reviewed by Council.

Significance of financial instruments to the Academy's position

The Academy has financial investments that are carried at fair value (see note 9) and other financial assets and financial liabilities of a kind that qualify as basic financial instruments (i.e. debtors and creditors). These are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans and finance leases which are subsequently measured at amortised cost using the effective interest method.

Policies relating to categories of income and income recognition.

All income, including government grants, is recognised when RADA is entitled to receive it, and the amount expected to be received can be reliably measured.

Specific sources of income are treated as follows:

- Funding Council Grants

Income receivable from OfS and other grant making bodies is apportioned to financial years on a time basis.

- Tuition Fees

Tuition fees are recognised in the period in which tuition is provided.

• Bursary and scholarships

Gifts intended to provide bursaries or scholarships to students are recognised in the period in which they become available to students. Scholarships towards RADA fees and fee waivers are shown as charitable expenditure rather than as a reduction of income.

37

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

Accounting for other deferred income and income received in advance

Where terms and conditions relating to income received have not been met or uncertainty exists as to whether the Academy can meet any terms or conditions otherwise within its control, income is not recognised but is deferred as a liability until it is probable that the terms or conditions imposed can be met.

Any grant that is subject to performance-related conditions received in advance of delivering the goods and services required by that condition, or is subject to unmet conditions wholly outside the control of the Academy, is accounted for as a liability and shown on the balance sheet as deferred income. Deferred income is released to income in the reporting period in which the performance-related or other conditions that limit recognition are met.

Where time related conditions are imposed or implied by a funder, then the income is apportioned to the time periods concerned, and, where applicable, is accounted for as a liability and shown on the balance sheet as deferred income. When grants are received in advance of the expenditure on the activity funded by them, but there are no specific time related conditions, then the income is not deferred.

Income from legacies

Income from legacies is recognised when RADA has sufficient evidence that a gift has been left to it, that, where required, probate has been granted, that the executor is satisfied that the property in question will not be required to satisfy claims on the estate, that it is probable that the amount will be received by RADA, and the amount to be received can be estimated with sufficient accuracy, and that any conditions attached to the legacy are either within the control of RADA or have been met.

Donated goods, facilities and services

Donated goods, assets and services are recognised at the current fair value. All such donations are recognised as donation income, and debited to expenditure or fixed assets as appropriate.

Policies relating to expenditure on goods and services provided to the Academy.

Recognition of liabilities and expenditure

A liability, and the related expenditure, is recognised when a legal or constructive obligation exists as a result of a past event, and when it is more likely than not that a transfer of economic benefits will be required in settlement, and when the amount of the obligation can be measured or reliably estimated.

Allocating costs to activities

Direct costs that are specifically related to an activity are allocated to that activity. Shared direct costs and support costs are apportioned between activities.

The basis for apportionment, which is consistently applied, and proportionate to the circumstances, is pro-rata with total direct expenditure in each area (excluding grants of scholarship and bursary funds).

Policies relating to assets, liabilities and provisions and other matters.

Fixed asset investments

Fixed asset investments in quoted shares, traded bonds and similar investments are shown initially at cost upon acquisition and at their market value at the balance sheet date.

Investments in subsidiaries are valued at the cost of acquisition of shares in the subsidiary.

All gains on fixed asset investments, whether realised or unrealised, are included in the Statement of Financial Activities.

Tangible fixed assets

Tangible fixed assets are measured at their original cost value. Cost value includes all costs expended in bringing the asset into its intended working condition.

Assets costing more than £2,000 are capitalised in the year of purchase.

Depreciation has been provided at the following rates in order to write off the assets to their anticipated residual value over their estimated useful lives.

Freehold premises 1% straight line Leasehold premises Straight line over the period of the lease Fixtures, fittings and office equipment 10% to 33% straight line Theatre, props, wardrobe and library plant and equipment 10% straight line

Freehold land is not depreciated.

Assets under construction are depreciated when the work is complete and the asset is brought into use. The costs incurred in obtaining planning permission for the development of Chenies Street were fully provided against in the year to 31 July 2020.

38

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

Accounting for capital grants and fixed asset funds.

Gifts for the purposes of acquiring specific assets to be used for charitable activity are credited to fixed asset funds after the donated asset has been received or sums have been properly expended on the restricted purpose.

Where the terms of the gift require RADA to hold the asset on an ongoing basis for a specific purpose, then the fixed asset fund so created is categorised as a restricted fixed asset fund.

When assets are acquired for the furtherance of the RADA's objects, utilising the Academy's own unrestricted funds, a transfer is made from unrestricted funds to a designated fixed asset fund.

Whether acquired with unrestricted or restricted funds, the asset acquired is initially shown in the balance sheet at the full cost of acquisition or subsequent revaluation.

As the assets are depreciated, in accordance with the depreciation policy, in order to reflect the dimunition in the value of the asset, a transfer is made from the relevant fixed asset funds to either unrestricted or restricted revenue funds, as appropriate to the terms of the original gift, if any.

The effect of this policy is that the aggregate of all the fixed asset funds equates to the net book value of the Academy's fixed assets.

Stocks and work in progress

Stock is valued at the lower of cost and net realisable value.

Debtors

Debtors are measured at their recoverable amounts at the balance sheet date.

Creditors and provisions

Creditors and provisions are recognised where the Academy has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Liabilities relating to RADA's obligations to the defined benefit pension scheme (The Royal Academy of Dramatic Art 1978 Retirement Fund) are recognised and valued in line with FRS 102, Section 28 as further detailed in note 7. All other creditors and provisions are measured at fair value.

Cash and bank balances

Cash held by the Academy is included at the amount actually held and counted at the year end. Bank balances, whether in credit or overdrawn, are shown at the amounts properly reconciled to the bank statements.

Leasing and hire purchase contracts and commitments

The leasehold property held under a finance lease is recognised as an asset of RADA at historic cost less depreciation. The liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and a reduction in the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income, unless they are directly attributable to qualifying assets, in which case they are capitalised.

Rentals payable under operating leases are expensed on a straight line basis over the term of the relevant lease.

Pensions - defined contribution schemes

The Academy operates a defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.

Pensions - defined benefit schemes

The Academy operates a defined benefit pension scheme (The Royal Academy of Dramatic Art 1978 Retirement Fund, "the Scheme"). Scheme assets are measured using market values. Scheme liabilities are measured using the projected unit valuation method and are discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability. Any increase in the present value of liabilities within the Scheme expected to arise from employee service in the period and net interest is charged to the Statement of Financial Activities within total expenditure. Changes to the plan liabilities arising from changes to demographic and financial assumptions are shown in other recognised gains and losses.

The expected return on the Scheme's assets and any decrease during the period in the present value of the Scheme's liabilities arising from the passage of time are included in the Statement of Financial Activities. Scheme surpluses, to the extent that they are considered recoverable, or deficits are recognised in full and presented on the face of the balance sheet.

Liability to taxation

As a registered charity, RADA is exempt from income and corporation tax to the extent that its income and gains are applied towards its charitable objects and for no other purpose. Value Added Tax is not completely recoverable by RADA, and the irrecoverable amount is therefore included in the relevant costs in the Statement of Financial Activities.

39

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

2	Analysis of incoming resources Current year Unrestricted 2021 £000 Donations & legacies Fundraising 229 Coronavirus Job Retention Scheme funding (furlough) - Royalties 25 Donated goods & services 161 Legacies - Total from donations & legacies 415 Charitable activities HE fees - UK Undergraduate 1,145 HE fees - UK Postgraduate 183 HE fees - EU Undergraduate 54 HE fees - EU Postgraduate 14 HE fees - Non EU Undergraduate 205 HE fees - Non EU Postgraduate 73 Short course income 664 Course fees and education contracts 2,338 OfS teaching grant 144 Research England other grants (HEIF) 798 Capital grants (TCIF) - 942 Audition fees 121 Outreach income 2 Ticket & audience income 3 Sundry income 65 191 Total from charitable activities 3,471 Other trading activities RB turnover 10 3,316 Fundraising events 39 3,355 Investment income Income on fixed asset investments 21 21 Total incoming resources 7,262	Unrestricted 2021 £000 229 - 25 161 -	Restricted 2021 £000 680 310 - - -	Endowment 2021 £000 - - - - 610	Total Funds 2021 £000 909 310 25 161 610	Total Funds 2020 £000 1,243 222 78 285 33
		415	990	610	2,015	1,861
		1,145 183 54 14 205 73 664	- - - - - - -	- - - - - - -	1,145 183 54 14 205 73 664	1,402 87 72 63 195 87 1,332
		2,338	-	-	2,338	3,238
		144 798 -	- - 18	- - -	144 798 18	143 754 208
		942	18	-	960	1,105
		121 2 3 65	- - - -	- - - -	121 2 3 65	204 4 134 100
		191	-	-	191	442
		3,471	18	-	3,489	4,785
			- -	- -	3,316 39	4,603 26
		3,355	-	-	3,355	4,629
		21	-	82	103	130
		21	-	82	103	130
		7,262	1,008	692	8,962	11,405

Donated goods and services largely represent the estimated value of renting theatre equipment that has been lent to RADA free of charge.

40

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

2	Prior year Unrestricted Restricted Endowment Total Funds 2020 2020 2020 2020 £000 £000 £000 £000 Donations & legacies Fundraising 299 944 - 1,243 Coronavirus Job Retention Scheme funding (furlough) - 222 - 222 Royalties 78 - - 78 Donated goods & services 285 - - 285 Legacies 33 - - 33 Total from donations & legacies 695 1,166 - 1,861 Charitable activities HE fees - UK Undergraduate 1,402 - - 1,402 HE fees - UK Postgraduate 87 - - 87 HE fees - EU Undergraduate 72 - - 72 HE fees - EU Postgraduate 63 - - 63 HE fees - Non EU Undergraduate 195 - - 195 HE fees - Non EU Postgraduate 87 - - 87 Short course Income 1,332 - - 1,332 Course fees and education contracts 3,238 - - 3,238 OfS teaching grant 143 - - 143 Research England other grants (HEIF) 754 - - 754 Capital grants (TCIF) - 208 - 208 897 208 - 1,105 Audition fees 204 - - 204 Outreach income 4 - - 4 Ticket & audience income 134 - - 134 Sundry income 100 - - 100 442 - - 442 Total from charitable activities 4,577 208 - 4,785 Other trading activities RB turnover 10 4,603 - - 4,603 Fundraising events 26 - - 26 4,629 - - 4,629 Investment income Income on fixed asset investments 36 - 94 130 36 - 94 130 Total incoming resources 9,242 1,374 94 11,405	Unrestricted Restricted Endowment Total Funds 2020 2020 2020 2020 £000 £000 £000 £000 299 944 - 1,243 - 222 - 222 78 - - 78 285 - - 285 33 - - 33
		695 1,166 - 1,861
		1,402 - - 1,402 87 - - 87 72 - - 72 63 - - 63 195 - - 195 87 - - 87 1,332 - - 1,332
		3,238 - - 3,238
		143 - - 143 754 - - 754 - 208 - 208
		897 208 - 1,105
		204 - - 204 4 - - 4 134 - - 134 100 - - 100
		442 - - 442
		4,577 208 - 4,785
		4,629 - - 4,629
		36 - 94 130
		36 - 94 130
		9,242 1,374 94 11,405

Helen Slater

41

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

3 Analysis of expenditure

Analysis of expenditure
Current year Raising funds RB expenditure Fundraising Investment management Total raising funds Charitable activities Core courses Non-core courses Access & participation Theatre & other presentation costs Auditions Other charitable activities Total Charitable activities Total expenditure*	Direct costs Grants made to individuals Allocated support costs Depreciation & impairment Total Total 2021 2021 2021 2021 2021 2020 £000 £000 £000 £000 £000 £000 2,824 - - - 2,824 3,621 467 - - - 467 597 18 - - - 18 18
	3,309 - - - 3,309 4,236
	- 3,111 - 2,372 506 5,989 6,325 929 - 709 151 1,789 2,409 192 525 145 31 893 787 323 - 246 53 622 1,433 - - - - - 46 222 - 169 36 427 422
	4,777 525 3,641 777 9,720 11,422
	-
	8,086 525 3,641 777 13,029 15,658

*Audition costs are now included in core course costs

Grants made to individuals consist of bursary payments to students.

Core courses are the Foundation degree and BA courses in Acting and Technical Theatre & Stage Management and PgDip course in Theatre Costume.

Non-core courses include MA courses, Foundation courses and short courses.

Support costs and depreciation included in the above expenditure have been allocated to the activities above by the following amounts:

Core courses Non-core courses Access & participation Theatre & other presentation costs Auditions* Other charitable activities	Governance Finance Admin & Premises & Total support costs other overheads 2021 2021 2021 2021 2021 £000 £000 £000 £000 £000 35 508 1,274 1,059 2,876 10 152 381 317 860 2 31 79 66 178 4 53 132 110 299 - - - - - 2 36 91 76 205
	53 780 1,957 1,628 4,418

42

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

3 Analysis of expenditure (cont.)

Prior year Raising funds RB expenditure Fundraising Investment management Total Raising funds Charitable activities Core courses Non-core courses Access & Participation Theatre & other presentation costs Auditions Other charitable activities Total charitable activities Total expenditure Core courses Non-core courses Theatre & other presentation costs Auditions Other charitable activities	Direct costs Grants made to individuals Allocated support costs Depreciation Total 2020 2020 2020 2020 2020 £000 £000 £000 £000 £000 3,621 - - - 3,621 597 - - - 597 18 - - - 18
	4,236 - - - 4,236
	2,746 - 1,884 1,695 6,325 993 - 747 669 2,409 106 520 88 73 787 621 - 428 384 1,433 45 - 1 - 46 166 - 144 112 422
	4,677 520 3,292 2,933 11,422
	8,913 520 3,292 2,933 15,658
	Governance Finance Admin & Premises & Total Support Costs Other Overheads 2020 2020 2020 2020 2020 £000 £000 £000 £000 £000 16 1,771 1,137 816 3,740 7 670 430 309 1,416 3 384 247 178 812 1 - - - 1 1 112 84 59 256
	28 2,937 1,898 1,362 6,225

4 Specific expenditure

Specific expenditure
Remuneration of auditors for audit services Access and participation expenditure Access investment (including salaries) Financial support to students Support for disabled students Research and evaluation Remuneration of auditors for non-audit services The net movement in funds in the financial year is stated after charging:-	2021 £000 51 2 2021 £000 145 525 - -	2020 £000 30 2 2020 £000 106 520 5 -
	670	631

Access investment includes £145k (2020:£82k) of staff costs that are already included in the overall staff costs in note 5. RADA's Access and Participation Plan 2020-25 is published on our website.

43

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

5 Staff costs and emoluments

Salary costs 2021 £000 Gross salaries excluding Trustees and key management personnel 4,837 Employer's National Insurance for all staff 591 Employer's contribution to defined contribution pension schemes 186 Other employee benefits, excluding amounts paid to Trustees and key management personnel 16 761 Trustees' remuneration as detailed in note 18 - Total salaries, wages and related costs 6,391 Redundancy, termination and compensation payments 2021 £000 Redundancy and other severance payments 17 Compensation payments in lieu of notice 108 125 Numbers of employees 2021 The average number of total staff employed in the year was 176 The estimated full time equivalent number of all staff employed in the year was 117 The estimated equivalent number of full time staff deployed in different activities in the year was:- 2021 Engaged in charitable activities 75 - Commercial trading 23 - Fundraising 4 Engaged on management and administration 15 The estimated full time equivalent number of all staff employed as above 117 Salaries and benefits paid to key management personnel (excluding redundancy, termination and compensation payments) Redundancy, payments in lieu of notice or other severance payments were made to three staff in 2020-21 (2019-20: 2)	2021 £000 4,837 591 186 16 761 -	2020 £000 4,662 556 182 14 705 -
	6,391	6,119
	2021 £000 17 108	2020 £000 33 -
	125	33
		2020 167
	117	118
	2021 75 23 4 15	2020 75 21 5 17
	117	118

Except as noted in note 18, no Trustee or any person connected with any of them has received any remuneration from the Academy or any related entity, either in the current or prior year.

The number of employees whose emoluments including taxable benefits but excluding employer's pension contributions fell into the following bands were :-

£60,001 to £70,000 £70,001 to £80,000 £80,001 to £90,000 £90,001 to £100,000 £100,001 to £105,000 £115,001 to £120,000 £120,001 to £125,000 £175,001 to £180,000 £180,001 to £185,000 £220,000 to £225,000	2021 No 4 2 1 4 - - - 1 1 -	2020 No 3 2 4 - 2 1 1 - - 1
	13	14

44

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

5 Staff costs and emoluments (cont) The pension details of such higher paid staff were :- Contributions for the provision of money purchase pension Numbers of such staff to whom benefits are accruing :- Under money purchase pension schemes Emoluments for the Director were as follows: The Director's remuneration in the year Pension contributions paid by the employer Payment in lieu of notice Total remuneration package included in total salaries above	2021 £000 47	2020 £000 46
	2021 No 13	2020 No 14
	13	14
	2021 £000 124 5 52	2020 £000 124 5 -
	181	129

Based on salaries paid in April 2021, the Director's basic salary is 2.6 times the median pay of staff (2020: 2.9 times), where the median pay is calculated on a full-time equivalent basis for the salaries paid by RADA to its staff. The same ratio applies when total remuneration is considered.

When considering the Director's salary, the Remuneration Committee take into account the context in which RADA operates (as a small specialist HEP) and the value and performance delivered by the Director. Both RADA's and the Director's performance over a number of years are considered. Benchmarks from the higher education, arts and charity sectors are used.

6 Defined contribution pension schemes

The Academy operates a defined contribution auto-enrolment pension scheme administered by Legal & General, the costs of which are shown above. The Academy contributes 4% of basic salary for all eligible employees (2020: 4%). All costs are treated as an expense of unrestricted funds.

45

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

7 Defined benefit pension scheme

RADA operates a defined benefit pension scheme in the UK ("the Scheme"). A full actuarial valuation was carried out at 31 March 2019 and updated to 31 July 2021 by a qualified actuary, independent of the Scheme's sponsoring employer. The major assumptions used by the actuary are shown below.

This most recent full actuarial valuation showed a deficit of £1,063,000. The Academy has agreed with the trustees of the Scheme that it will aim to eliminate the deficit over a period of 2 years and 9 months from 1 April 2019 by the payment of annual contributions of £250,000 in respect of the deficit. In addition, and in accordance with the actuarial valuation, the Academy has agreed with the trustees that it will meet expenses of the scheme and levies to the Pension Protection Fund.

The best estimate of contributions to be paid by the Academy to the Scheme for the period commencing 1 August 2021 is £45,000.

Present values of defined benefit obligation, fair value of assets and defined benefit liability

Fair value of plan assets Present value of defined benefit obligation Defined benefit (liability) to be recognised	2021 2020 2019 £000 £000 £000 8,457 7,566 7,482 8,949 9,143 9,784
	(492) (1,577) (2,302)

Reconciliation of opening and closing balances of the defined benefit obligation

Reconciliation of opening and closing balances of the defined benefit obligation
Defined benefit obligation at start of period Interest expense Actuarial (gains) Benefits paid & expenses Defined benefit obligation at end of period Fair value of plan assets at start of period Interest income Actuarial gains/(losses) Contributions by the employer Benefits paid & expenses Fair value of plan assets at end of period Reconciliation of opening and closing balances of the fair value of plan assets	2021 2020 £000 £000 9,143 9,784 135 204 (23) (728) (306) (117)
	8,949 9,143
	2021 2020 £000 £000 7,566 7,482 113 159 778 (247) 306 289 (306) (117)
	8,457 7,566

The actual return on the plan assets over the period ended 31 July 2021 was a gain of £891k (2020:loss of £89k). The plan assets are entirely invested in the Baillie Gifford Diversified Growth Fund. There is no investment in the Academy's own financial instruments or any property occupied, or other assets used, by the employer.

Defined benefit costs recognised in profit or loss

Net interest cost

2021	2020
£000	£000
22	45
22	45

46

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

• 7 Defined benefit pension scheme (cont.)

Defined benefit costs recognised in other recognised gains

Defined benefit costs recognised in other recognised gains
Total recognised in other recognised gains Effects of changes in the demographic and financial assumptions underlying the present value of the plan liabilities - (loss)/gain Experience gain arising on the plan liabilities Gain/(loss) on plan assets excluding amounts included in net interest cost	2021 2020 £000 £000 778 (247) 48 450 (25) 278
	801 481

The experience gain arising on the plan liabilities is the effect of using the most recently completed scheme valuation (as at March 2019). The impact of using this valuation was to introduce gains and losses that arose between 31 March 2016 and 31 March 2019.

Assumptions

Assumptions
	2021	2020	2019
	% per annum	% per annum % per annum
Discount rate	1.60	1.50	2.10
Inflation (RPI)	3.50	3.10	3.50
Allowance for revaluation of deferred pensions of RPI or 5% p.a. if less	3.50	3.10	3.50
Allowance for pension in payment increases	3.50	3.10	3.50
Allowance for commutation of pension for cash at retirement	None	None	None
The mortality assumptions adopted at 31 July imply the following life expectancies
	Life expectancy at age 65 (years)
		2021	2020
Male aged 65		20.5	20.5
Female aged 65		22.5	22.4
Male aged 45		21.8	21.9
Female aged 45		24.1	24.0

Any liabilities and assets associated with the scheme are shown under debtors and creditors.

47

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

8 Tangible fixed assets Group

Cost At 1 August 2020 Additions At 31 July 2021 Depreciation At 1 August 2020 Charge for the year At 31 July 2021 Net book value At 31 July 2021 At 31 July 2020 Academy only Cost At 1 August 2020 Additions At 31 July 2021 Depreciation At 1 August 2020 Charge for the year Impairment of assets during the year At 31 July 2021 Net book value At 31 July 2021 At 31 July 2020	Land & Buildings £000 42,714 849	Plant & Machinery £000 5,135 301	Total Total £000 £000 47,849 47,849 1,150 1,150 48,999 48,999 16,223 16,223 777 777 17,000 17,000 31,999 31,999 31,626 31,626 £000 £000 47,808 41,347 1,148 355 48,956 48,956 16,200 10,777 765 630 - - 16,965 11,407 31,991 31,991 31,608 30,570
	43,563	5,436
	11,728 478	4,495 299
	12,206	4,794
	31,357	642
	30,986	640
	£000 42,714 849	£000 5,094 299
	43,563	5,393
	11,728 478 -	4,472 287 -
	12,206	4,759
	31,357	634
	30,986	622

• Following a review of the fixed asset register during the year, the brought forward cost and depreciation amounts for assets owned by the Academy have both been reduced by £322k, reflecting the disposal of the original lease of 16 Chenies Street in 2017-18.

The net book value of plant, machinery and vehicles held under finance leases and hire purchase contracts included above is:	The net book value of plant, machinery and vehicles held under finance leases and hire purchase contracts included above is:
	2021	2020
	£000	£000
Total of assets held under finance leases	2,784	2,078

48

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

9 Investments held as fixed assets

Investments held as fixed assets
Note Quoted investments Investments in subsidiary 10 Carrying values of listed investments At 1 August 2020 Additions - income re-invested Revaluation at 31 July 2021 Disposals and management fees At 31 July 2021 Analysis between fair value and historical cost Investments as above held at fair value Historic cost of the above investments	2021 2020 £000 £000 8,589 11,372 - - 8,589 11,372 GROUP	2021 £000 8,589 2	2020 £000 11,372 2 ACADEMY
		8,591	11,374
		2021 2020 £000 £000 11,372 12,173 103 112 1,134 336 (4,020) (1,249) GROUP & ACADEMY
		8,589	11,372
		8,589	11,372
		4,324	6,503

The market value at 31 July 2021 includes cash and securities which are invested in three funds managed by McInroy & Wood Ltd, Ruffer LLP and Troy Asset Management Ltd.

All investments are held in one of three funds. Within those funds no one investment in any company accounts for more than 5% of that fund's value.

Investments are analysed as follows UK Non UK Fixed Interest UK equities Overseas equities Cash Other	2021 2020 £000 £000 2,415 3,081 6,174 8,291
	8,589 11,372
	2,617 3,778 1,223 1,230 4,016 4,872 194 554 539 938
	8,589 11,372

49

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

10 Subsidiary companies

The name of the subsidiary undertaking is RADA in Business Limited (RB), which is registered in England & Wales with company number 03999577.

The aggregate amount of RADA's investment in its subsidiary is £2k, which represents 100% of the issued ordinary share capital of the subsidiary. The subsidiary is controlled by the holding company by virtue of the power to appoint directors to the board of the subsidiary.

RB donates its taxable profits to RADA every year.

A summary of the audited financial statements of the subsidiary is :- Assets and Funds Aggregate amount of assets Aggregate amounts of liabilities Aggregate amount of funds Profit and Loss Turnover net of VAT Coronavirus Job Retention Scheme funding (furlough) Expenses net of VAT Net profit for the year before tax Donation to RADA by way of Gift Aid (Deficit) for the year after tax and Gift Aid Investment in RB at 1 August 2020 and 31 July 2021	2021 £000 2 2021 £000 973 (956)	2020 £000 2 2020 £000 944 (919)
	17	25
	3,316 15 (3,141)	4,603 22 (3,933)
	190 (198)	692 (692)
	(8)	-

The net profit of the subsidiary is stated after including intergroup expenditure of £291k (2020:£291k) which has been eliminated on consolidation.

Amounts owing to and from the subsidiary are shown in the notes relating to creditors and debtors.

Debtors Trade debtors Prepayments and accrued income Other debtors	2021 £000 661 1,137 153	2020 £000 330 1,412 184 1,926 GROUP	2021 £000 199 1,137 -	2020 £000 152 1,412 27 ACADEMY
	1,951		1,336	1,591

11 Debtors

12 Contingent asset

During the year, RADA was notified of two legacies in respect of which probate had been granted before 31 July 2021. Both consist of financial assets and property assets. As the market value of the financial assets is readily ascertainable, and they can be sold easily, we have recognised our share of those assets as incoming resources to endowment funds in the year, totalling £610k. As timing of the sale of the property assets is uncertain, and outside trustees’ control, they have not been recognised as income in this year. Based on the probate valuations, the further income that may be realised is c.£1.5m.

13 Creditors: amounts falling due within one year

Trade creditors Accruals Deferred income Amounts owed to group undertakings PAYE, NIC VAT and other taxes Other creditors	2021 £000 613 237 326 - 272 855	2020 £000 438 142 480 - 226 957 2,243 GROUP	2021 £000 472 237 326 138 162 150	2020 £000 337 142 480 201 104 261 ACADEMY
	2,303		1,485	1,525

Deferred income reflects fee income received or invoiced in the year for courses that take place after the year end (such as short courses), and funding for multi-year scholarships and bursaries that has been donated for use in future years. All of the income deferred at the end of 2019-20 was released in 2020-21.

50

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

Creditors: amounts falling due after one year Amount due under finance lease Amount due under finance lease falls due as follows: Within 1-2 years Within 2-5 years After more than 5 years	2021 2020 £000 £000 5,277 4,254 110 153 354 566 4,813 3,535 GROUP & ACADEMY	2021 2020 £000 £000 5,277 4,254 110 153 354 566 4,813 3,535 GROUP & ACADEMY
	5,277	4,254

14 Creditors: amounts falling due after one year

The finance lease has a term of 35 years to December 2040 and is repayable by quarterly instalments, which are subject to annual fixed rate increments. The interest rate implicit on the lease is 5.5% per annum. During the year, the minimum term of the finance lease was increased by five years (from 30 years) in return for a waiver of rent for one year. This has increased fixed assets and long-term liabilities.

15 Net debt reconciliation

Cash Cash equivalents Finance lease obligations (< 1 year) Finance lease obligations (> 1 year) Total Cash Cash equivalents Finance lease obligations (< 1 year) Finance lease obligations (> 1 year) Total	At 1 Aug 2020 £000 483 4	Cashflows £000 277 (4)	Non-cash movements £000 - -	At 31 July 2021 £000 760 - 760 - (5,277) (4,517) At 31 July 2020 £000 483 - 4 - 487 - (137) - (4,254) - (3,904) -
	487 (137) (4,254)	273 137 -	- - (1,023)
	(3,904)	410	(1,023)
	At 1 Aug 2019 £000 626 4	Cashflows £000 (143) -	Non-cash movements £000 - -
	630 (123) (4,391)	(143) 123 -	- (137) 137
	(3,884)	(20)	-

16 Contingent liabilities

a) RADA received during the year ended 31 March 1990 a sum of £500k being a contribution towards the purchase price of 18 Chenies Street from the then Secretary of State for Education to be used in compliance with the Education (Grant) Regulations 1983.

In the event of the property not being used for the purpose for which it was intended to be used at the time the grant was made, on the application of the Secretary of State, it may be repayable by RADA.

b) Under the terms of a grant towards RADA's Centenary Project, Arts Council England ("ACE") paid RADA a grant of £22,897,736 from the National Lottery Fund. In the event of RADA not complying with the conditions of the grant, ACE may apply for it to be repaid.

51

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

17 Operating lease commitments

Lessor commitments

RADA acts as a lessor in connection with operating leases and continues to recognise the assets subject to the operating lease as assets on its balance sheet. The lease payments received from the lessee are recognised in the Statement of Financial Activities on a receivable basis. The leases relate to the rental of property, namely the use of part of the roofs of Gower St and Chenies St for telecoms masts. The future minimum lease payments arising from non-cancellable operating leases are shown below. The amounts due to the Academy fall due as follows:

below. The amounts due to the Academy fall due as follows:
Within one year In the second to fifth years inclusive	2021 2020 £000 £000 35 35 120 15 GROUP & ACADEMY
	155	50

Lessee commitments

RADA has rented office premises in Scala Street, London W1 which it in turn sub-lets to RB. The lease payments to the landlord are recognised on a straight-line basis over the lease term to the first break clause. The amounts due to the landlord fall due as follows

fall due as follows
Within one year In the second to fifth years inclusive	2021 2020 £000 £000 235 235 87 322 GROUP & ACADEMY
	322	557

18 Related party transactions

Donations totalling £44k were received from Council members, or organisations connected with Council members (2020: £40k). No Trustee claimed expenses from the Academy during the year (2020: nil).

Rishi Madlani, a member of Council, is also the councillor for the Bloomsbury ward of the London Borough of Camden, where RADA is situated, and he works for NatWest. During the year the Academy paid £25k in rent and £66k in non-domestic rates to the borough. After the year end, RADA appointed NatWest as its main banker. Rishi Madlani recused himself from the procurement process, and the appointment is on normal commercial terms.

Student Council members Jacob Steele and Lara Grace Ilori were each awarded a fee of £7k for work undertaken on the AntiRacism Steering Group

Buster Dover, a member of Council, was paid a fee of £33k for management consultancy work at RADA during the year. This was agreed on an arms length basis and in line with Charity Commission guidance on payments to trustees. Council members S J K Barratt and Ros Haigh are Trustees of the RADA 1978 Retirement Fund, a defined benefit pension scheme. Details of RADA's transactions and liabilities with the Scheme are shown in note 7.

Transactions with RB are described in notes 10 and 16 and the balances due from RB to RADA and RADA to RB are shown in notes 11 and 12 respectively.

There were no material balances due to or from other related parties at the reporting date.

52

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

19 Analysis of how particular funds are represented by assets and liabilities

At 31 July 2021 Tangible fixed assets Investments at valuation:- Fixed asset investments Current assets Current liabilities Long term liabilities Pension liability	Unrestricted Designated funds funds £000 £000 - 11,611 2,989 - 1,615 - (2,303) - (5,277) - (492) -	Restricted funds £000 20,388 - 486 - - -	Endowment funds £000 - 5,600 610 - - -	Total Funds £000 31,999 8,589 2,711 (2,303) (5,277) (492)
	(3,468) 11,611	20,874	6,210	35,227

At 31 July 2020 Tangible fixed assets Investments at valuation:- Fixed asset investments Current assets Current liabilities Long term liabilities Pension liability	Unrestricted Designated funds funds £000 £000 - 10,926 6,045 - 1,863 - (2,243) - (4,254) - (1,577) -	Restricted funds £000 20,700 - 572 - - -	Endowment funds £000 - 5,327 - - - -	Total Funds £000 31,626 11,372 2,435 (2,243) (4,254) (1,577)
	(166) 10,926	21,272	5,327	37,359

53

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

20 Change in total funds over the year

Unrestricted and designated funds:- Unrestricted - RADA general fund Unrestricted - RB reserves Sale & leaseback commitments Pension scheme liabilities Designated fixed asset funds Total unrestricted and designated funds	See Note 2 See Note 3 See Note 8 See Notes 7 and 9 £000 £000 £000 £000 £000 £000 5,638 3,946 (8,081) 354 429 2,286 25 3,316 (3,324) - - 17 (4,252) - (182) (845) - (5,279) (1,577) - 284 - 801 (492) 10,926 - (306) 991 - 11,611 - 10,760 7,262 (11,609) 500 1,230 8,143 Funds brought forward from 2020 Expenditure Asset purchases and transfers Gains & losses Funds carried forward to 2022 Income

Unrestricted and designated funds:- Unrestricted - RADA general fund Unrestricted - RB reserves Sale & leaseback commitments Pension scheme liabilities Designated revenue funds - Scholarships - Building & Capital Designated fixed asset funds Total unrestricted and designated funds	See Note 2 £000 £000 4,054 9,918 25 - (4,391) - (2,302) - 500 3 3,000 16 13,418 - Funds brought forward from 2019 Income	See Note 3 £000 (12,218) - 139 244 (1) (2) (2,492) Expenditure	See Note 8 £000 3,715 - - - (528) (3,169) - Asset purchases and transfers	See Notes 7 and 9 £000 169 - - 481 26 155 - Gains & losses	£000 5,638 25 (4,252) (1,577) - - 10,926 - 10,760 Funds carried forward to 2021
	14,304 9,937	(14,330)	18	831

Designated Funds

The Scholarships Fund is to provide student scholarships and bursaries. In the year scholarships were paid from specific donations.

The Building and Capital Projects Fund was created to undertake capital and refurbishment projects on RADA's estate. Designated fixed asset funds represent the net present value of assets acquired with unrestricted funds.

Transfers

Transfers consist of asset purchases from unrestricted or restricted funds and the transfer of designated reserves to general reserve to provide the additional working capital needed as a result of the pandemic.

54

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

20 Change in total funds over the year (cont.)

Restricted funds:-

Restricted fixed asset funds Capital Campaign Fund Shaw Fund Widening Participation Fund Furlough Scholarship Funds Teaching Capital Student wellbeing Utah University C19 (Re)Framing the Future Digital Equipment (was Virtual Conservatoire) Sundry other funds Total restricted funds	See Note 2 £000 £000 20,700 - 158 40 32 - - 87 - 310 267 450 - 18 - 5 - 16 - 3 - 13 89 50 26 16 Funds brought forward from 2020 Income	See Note 3 £000 (469) - - (62) (310) (525) - (5) (16) (3) - - (16) Expenditure	See Note 8 £000 157 - - - - - (18) - - - - (139) - Asset purchases and transfers	See Note 9 £000 - - - - - - - - - - - - - Gains & losses	£000 20,388 198 32 25 - 192 - - - - 13 - 26 Funds carried forward to 2022
	21,272 1,008	(1,406)	-	-	20,874

Restricted fixed asset funds Attenborough Campaign Fund Shaw Fund Widening Participation Fund Furlough Scholarship Funds Teaching Capital Student wellbeing C19 Virtual Conservatoire Sundry other funds Total restricted funds	See Note 2 £000 £000 21,022 - - 158 57 - - 69 - 222 67 666 - 11 18 - - 25 - 197 - 26 Funds brought forward from 2019 Income	See Note 3 £000 (441) - (25) (69) (222) (515) - (18) (25) - Expenditure	See Note 8 £000 119 - - - - 49 (11) - - (108) - Asset purchases and transfers	See Note 9 £000 - - - - - - - - - - - Gains & losses	£000 20,700 158 32 - - 267 - - - 89 26 Funds carried forward to 2021
	21,164 1,374	(1,315)	49	-	21,272

Restricted Funds

Restricted fixed asset funds represent the depreciated value of assets that have been purchased with restricted funds. These include the Centenary Project investment in the Gower Street site, the Jerwood Vanbrugh Cinema and the refurbishment of the Props Room, as well as new investment in the Chenies Street project.

The Attenborough Campaign Fund was established to raise money to upgrade the theatre and buildings in Chenies St The Shaw Fund represents monies donated towards a fund to invest in new writing and to replace the royalties bequeathed to RADA by George Bernard Shaw which expired in 2020.

The Widening Participation Fund represents monies donated to encourage progression to higher education by students from diverse social backgrounds.

Furlough funds represents the income received under the Government's Coronavirus Job Retention Scheme which is restricted to staff salaries

The Scholarship Funds represent funds donated for student bursaries, maintenance grants and other support costs. The Teaching Capital Fund is a grant from OfS that is used to replace teaching equipment.

Student Wellbeing represents donations to be spent on student wellbeing services.

The Utah University Fund is a donation to be spent on teaching and producing works by William Shakespeare. The (Re)Framing the Future fund is donations received for work on decolonising the curriculum.

The Digital Equipment (was Virtual Conservatoire) fund represents funds received from the HEFCE/OfS Catalyst scheme and others for digital equipment and infrastructure.

The C19 fund represents funds raised to meet RADA's immediate needs arising from the Covid pandemic

55

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2021

20 Change in total funds over the year (cont.)

Endowment funds:- Category A Category B Total endowment funds Total charity funds Endowment funds:- Category A Category B Total endowment funds Total charity funds	See Note 2 £000 £000 3,832 119 1,495 573 Funds brought forward from 2020 Income	See Note 3 £000 (10) (4) Expenditure	See Note 9 £000 - (500) Asset purchases and transfers	See Note 9 £000 507 198 Gains & losses	£000 4,448 1,762 Funds carried forward to 2022
	5,327 692	(14)	(500)	705	6,210
					-
	37,359 8,962	(13,029)	-	1,935	35,227
	- See Note 2 £000 £000 3,832 68 1,495 26 Funds brought forward from 2019 Income	- See Note 3 £000 (9) (4) Expenditure	- See Note 9 £000 (49) (18) Asset purchases and transfers	- See Note 9 £000 (10) (4) Gains & losses	£000 3,832 1,495 Funds carried forward to 2021
	5,327 94	(13)	(67)	(14)	5,327
	40,795 11,405	(15,658)	-	817	37,359

Endowment Funds

The original monies donated to endowment funds are preserved as capital. An assessment of the income from these funds is made as required and investments are sold where required to provide scholarship and other support whilst keeping within limits that preserve the original capital value.

Category A funds may only be used for student scholarships and bursaries

Category B funds may be used for scholarships or for wider RADA purposes as agreed by Council

Income received on endowment funds in the year and part of the accumulated gains of the Category B funds, totalling £500k, have been transferred to the relevant income funds for charitable use in the year.

56

RADA Annual Report and financial statements - Dec 2021 v10 2022-02-22 pre-signing Final Audit Report 2022-03-01

Created: 2022-02-28 By: Fraser Jopp ([e-mail]) Status: Signed Transaction ID: CBJCHBCAABAAb5eILDv-7eZUHwbJ_p2-kE2affFYPYXW

"RADA Annual Report and financial statements - Dec 2021 v10 2022-02-22 pre-signing" History

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2022-02-28 - 5:17:23 PM GMT

Email viewed by Helen Slater ([e-mail])

2022-02-28 - 5:17:35 PM GMT- IP address: 82.71.15.107

Document e-signed by Helen Slater ([e-mail])

Signature Date: 2022-02-28 - 10:34:52 PM GMT - Time Source: server- IP address: 86.183.229.184

Document emailed to S J K Barratt ([e-mail]) for signature

2022-02-28 - 10:34:54 PM GMT

Email viewed by S J K Barratt ([e-mail])

• 2022-03-01 - 6:21:04 AM GMT- IP address: 104.47.10.254

Document e-signed by S J K Barratt ([e-mail])

Signature Date: 2022-03-01 - 6:22:09 AM GMT - Time Source: server- IP address: 86.186.15.26

Document emailed to Marcus Ryder ([e-mail]) for signature

2022-03-01 - 6:22:10 AM GMT

Email viewed by Marcus Ryder ([e-mail])

2022-03-01 - 6:22:29 AM GMT- IP address: 92.54.175.117

Document e-signed by Marcus Ryder ([e-mail])

Signature Date: 2022-03-01 - 6:51:05 AM GMT - Time Source: server- IP address: 92.40.172.36

Agreement completed. 2022-03-01- 6."51."05 AM GMT Adobe Sign