2023-07-31-accounts

ROYAL ACADEMY OF DRAMATIC ART (RADA)

Charity Registration Number 312819

Annual Report and Accounts

Year ended 31 July 2023

Annual report and accounts 2022-23

Table of contents

1.	Chair’s welcome	2
2.	Principal’s review	3
3.	About RADA	4
4.	Strategic aims and priorities	6
5.	World-leading training and productions	7
6.	Graduates and industry	10
7.	Anti-racism and equity	13
8.	Access and participation	14
9.	Estate and operations	15
10.	People	15
11.	Income generation and sustainability	16
12.	Financial review	19
13.	Public benefit	21
14.	Statement of corporate governance and internal control	21
15.	Statement of trustees’ responsibilities	27
16.	Independent auditors’ report to the trustees	29
	Financial statements
17.	Consolidated statement of financial activities	33
18.	Group and academy balance sheets	35
19.	Consolidated cash flow statement	36
20.	Notes to the financial statements	37

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1. Chair’s Review

It is a tremendous privilege to present the RADA annual report this year as we started to see the work of the new Principal, Niamh Dowling, and the restructured senior leadership team along with several new key faculty appointments, begin to bear fruit.

I am incredibly proud of the continued excellence of our teaching and the fantastic students who graduate from our degree courses in acting and technical theatre, our Masters programme, and our Short Courses. This high standard is recognised by the industry as we ranked fifth best drama school globally by The Hollywood Reporter (an increase of seven places since 2021 and first among UK-based schools).

This success is only possible thanks to the incredibly hard work of our staff and faculty. It is important to acknowledge the wider environment that this work is taking place in; an incredibly fragile British economy in which many people are experiencing a cost-of-living crisis. I applaud those who continue to make RADA the world-class institution that it is under these pressures.

RADA’s more established graduates continue to be recognised at the highest levels - from Lolita Chakrabati’s adaptation of Life of Pi adding three Tony awards to its impressive haul, to David Harewood OBE as the first Black British person to deliver the prestigious Richard Dimbleby lecture. I would also like to acknowledge the generosity of our graduates in giving back to RADA as this is a key component of our current students’ success.

Financially RADA still faces challenges. We still feel the long-term effects of Covid which severely impacted our reserves and compelled us to re-examine our business model. We continue to diversify our revenue streams and are grateful to RADA Business which continues to grow and has made a substantial contribution to our finances this year.

Equally our work would not be possible without the generosity of our much-valued supporters, funders, and partners to who we offer our profound thanks.

My fellow colleagues on the Council also continue to generously give their time and expertise to RADA. This year several much-valued Council members came to the end of their tenure, so I especially thank Zac Barratt, Paul Clay, Sir Martin Donnelly, Buster Dover, Tanya Moodie, Robin Soans, Mel Jessop, and Millie Boardman.

I welcome our new members Judith Chan and Richard Middleton to the Council this year, and also Jo Wardle to RADA’s Development Board. They bring skills and expertise in strategic finance, operations, and income generation as we steer into the future.

With great pleasure we restarted our honorary fellowship programme, paused during the pandemic, which recognises individuals who have made a positive impact in the arts and who exemplify the values that RADA strives to instil in our students. This year’s honorary fellows were Kathryn Hunter and Winsome Pinnock.

While there were many positives over the year it was also with much sadness that we said farewell to our Patron, Her Majesty Queen Elizabeth II. Queen Elizabeth served as our patron since her ascendance to the throne in 1952 and was unwavering in her support of RADA’s work. She is sorely missed.

Finally, it is important to remember why RADA exists. We do more than simply turn out highly skilled and technically proficient dramatic arts practitioners. We produce fully rounded

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individuals who through their expertise can make a positive contribution to wider society. While you read this report, please remember the amazing students who are behind every statistic. I urge everyone to visit RADA and experience the students’ work first hand, as that is the best way to fully understand our work.

Marcus Ryder

Marcus Ryder (Dec 19, 2023 17:35 GMT)

Marcus Ryder, Chair

2. Principal’s Review

The Academic year began with confirmation of our ‘World-Leading’ status by the Office for Students and concluded with a ‘GOLD’ rating in the Teaching Excellence Framework. These outstanding ratings will last for five years and are a credit to all staff who each play their part in that continued standard of excellence in our core activity.

The Senior Leadership Team set out with the ambition of reframing/decolonising the curriculum and underpinning it with a more integrated approach to embedding anti-racist approaches. This part of the process was led by the Director of Equity, Registrar and Directors of Training. It became apparent very quickly that we had to review the bigger context in which the courses were operating and the bigger system of which they were a part. There were so many factors that both contextualised the practice and that would be impacted by change. This has meant undertaking and leading systemic change across the whole Academy. We initiated voluntary workshops over seven months with a total of 250 staff, students, trustees, graduates, and industry to work towards defining a new mission statement, values, and goals to develop an academy-wide approach to the direction and content of the new strategic plan.

We have started the undergraduate curriculum review process, and this will continue into the coming year leading up to review in November. Reviewing intensity of productions has created the space for a cross-academy collaboration with the addition of a self-directed project. Reviewing of working hours for both staff and students will contribute to wellbeing and better working and training conditions. The conditions in which programmes operate have been agreed and attention can now turn to the content. Five postgraduate programmes in both technical and performance areas have been researched and written and will be launched over the next three years.

Policies, processes, and procedures have been updated, reflecting profound learnings of the past few years and sector-wide changes: funding bodies have changed their emphasis. Arts Council, trusts, and foundations all recognised the need to review their priorities, and like RADA, build access, inclusivity, belonging, representation, equality, equity, and social change into their organisations.

This has been a challenging year financially and our aim this year has been to begin the process of recovery from the impact of the past few years and to stabilise finances. We are developing a five-year business plan looking at growth and building up our reserves and ensuring we are working within the most efficient model of delivery in all areas. This approach will stabilise our finances as we build back our depleted reserves which were impacted during the Covid-19 pandemic.

Government funding remains critical for us, and we continue to depend on the extraordinary work of RADA Business and Short Courses to support the Academy, and the Development team

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to raise money for much-needed organisational priorities. With our current financial challenges, the work of the Development team has been essential in maintaining and growing a loyal and committed group of supporters. The Short Courses team launched a pilot one-week course in Manchester in July and are now scoping future national and international opportunities.

Thank you to everyone who has contributed to the success of the year: staff in every department of the Academy, students, graduates, trustees, and supporters. Your contribution to the mycelium of activity at RADA is essential and we thank you all for your vital part in that.

Niamh Dowling, Principal

3. About RADA: a summary

Founded in 1904, RADA has an unparalleled record of success in training some of the world’s most renowned actors, writers, directors, and technical specialists.

With 199 students, RADA is one of the smallest providers of vocational degrees in acting and technical stagecraft in the UK and is officially recognised as a world-leading conservatoire. Our training, gold-rated in the Teaching Excellence Framework (TEF), aims to foster students’ artistic, intellectual, and personal growth, creating an environment so graduates can emerge as leaders in their field. RADA seeks to cultivate powerful creative and technical artists, highly skilled, culturally aware and positioned to have exemplary careers and lead the future of their profession.

RADA's reputation as a world-renowned centre of excellence is based on attracting talent from every part of society and delivering an outstanding training experience. We allocate places at RADA on talent alone, regardless of background or circumstance.

RADA’s exceptional training is resource intensive. It costs over £30,000 per year to train a RADA student. This is significantly higher than the funding we receive and as a result we have to raise the majority of this money through external sources.

World-leading training

• We are formally recognised by the Office for Students as a world-leading institution.

• We audition and interview around 4,000 applicants each year for just 28 acting and 30 technical undergraduate places.

• 722 applicants for the BA (Hons) in Acting qualified for a free audition, and it is free to apply for technical courses.

• Every student receives at least 35 hours of teaching each week.

• RADA's specialist training is intensely practical and in addition to their classes with our world-leading faculties, in 2022-23, our students also trained on:

• 16 stage productions across all courses

• Three short films that have since won awards at film festivals around the world

• An Escape Room project

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• A Son et Lumière project

• A scenic art and construction project

• Filmed monologues

• A filmed Tree showcase

• A contemporary duologues showcase

• Prize Fights showcase

• Two Production and Costume exhibitions

• RADA’s graduates are leaders in their fields and are recognised at major international awards (see below for more details).

Anti-racism and equality, diversity and inclusion

• RADA allocates places solely on the basis of talent, regardless of background or financial circumstance.

• Approximately 54% of undergraduate students receive financial support from RADA, with an average award of £3,000 at a total cost of c.£400k.

• There is an equal gender balance on our undergraduate programmes (actor and theatre production training).

• Black and Global Majority students make up 43% of our BA Acting course.

• In 2022-23 our work to become an anti-racist organisation continued, including the implementation of an Academy-wide Anti-Racism and Equity action plan.

• We continued mandatory training across the Academy on a broad and inclusive range of subjects.

Financial sustainability

• Student fees only cover around a third of the cost of their training.

• Our total annual income in 2022-23 was £15.3m, of which 73% was self-generated.

• In 2022-23 our funders, partners and supporters generously contributed around £1m to RADA.

• We have a robust, post-Covid financial recovery strategy, including our continued fundraising, and growth plans for Short Courses and RADA Business.

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ANNUAL REPORT

The Trustees present their report and accounts for the year ended 31 July 2023. 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'.

4. Strategic aims and priorities

Charitable Objectives

The objectives of RADA, as defined by the revised Royal Charter of 20 July 2020, are "to advance the art of 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 Drama in the United Kingdom and generally to encourage and promote the cultivation of Drama as an Art throughout the world".

Our purpose, values, and strategic commitments

Our purpose and mission

We believe in the power of the dramatic arts to inspire transformation and growth in individuals and society. We deliver world-leading training in the dramatic arts by cultivating exceptional talent in a community dedicated to curiosity, creativity, and craft.

Our values

We are inclusive, rigorous, committed to our craft, collaborative and transformative.

During 2022-23 we engaged over 250 members of staff, students, graduates, trustees, and industry in workshops on RADA’s mission and values, to inform the new five-year strategy we will be launching in 2023-24.

Strategic aims and priorities for 2022-23

• Development of a new three–five-year strategy and business plan.

• A curriculum review of RADA’s core programmes ready for revalidation in November 2023.

• Ensuring the high standards of training and student experience are maintained.

• A new People Strategy, which includes supporting continued development for all staff, through training and updating professional practice.

• Growing income through commercial activity and fundraising.

• Development of new postgraduate programmes.

• Continued investment in RADA's anti-racism and equity work.

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The key priorities for 2023-24 are:

• Implementing a new financial resilience plan and new five-year strategy.

• Preparing to launch newly validated postgraduate programmes in 2024 and 2025.

• Ensuring the high standards of training and student experience are maintained.

• Growing income and rebuilding reserves through commercial activity and fundraising.

• Continued investment in RADA’s anti-racism and equity work.

5. World-leading training and productions

BA Acting

This is the final year of the Covid-affected timetable. The third-year students have successfully graduated, completing nine stage productions, three films, three showcases (two inperson/one filmed). 12 of the cohort (of 18) returned for a post-graduation production – the last of the additional productions offered for students affected by Covid changes. Industry interest has been positive: 14 out of 18 have either signed, have offers to sign or have booked professional work.

Second-year students have toured three Shakespeare for Young Audiences productions to eight London schools, and we have resumed the international touring schedule, taking the productions to the META festival in Florence, Italy; Utah Shakespeare Festival, USA; and Alpbach Forum, Austria.

The periodic programme review is underway, with the expectation of revalidation in November 2024 and the new programme beginning September 2025.

Key appointments: Lead Tutor in Voice (Kay Welch), Lead Tutor in Acting (Sinéad Rushe) and Lead Tutor in Movement (Lizzie Ballinger).

MA Theatre Lab

The 2022 year-group presented two very successful public performance shows in September 2022. They completed their year with a festival of new work, Lab Works, in early December, playing nine original shows over one week.

In July 2023 this graduating group re-staged these performances in a new residency at the Notting Hill Coronet Theatre. Alongside the re-staged shows (which played to near sold-out audiences) alumni share new work and network through workshops offered by the community. The theatre promotes new work from around the world and we are privileged to be given an exclusive platform for our student body to present their performances.

The 2023 year-group commenced in January. The group is more UK-based than previously, however, they are embracing the international approach we explore. They visited Greece after Easter with The Suppliant Women by Aeschylus and have just started their summer productions, this year directed by Guillaume Pige of Theatre RE and Kristine Landon-Smith.

FdA and BA in Technical Theatre and Stage Management, and PgDip in Theatre Costume The slightly reduced Acting programme allowed some innovative training opportunities in the Technical programme this year. The cohort of students have been fully engaged and we are confident that our new recruitment process, which includes workshops and interviews, is

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working well. Notable shows include Gloria in early Spring, which enabled us to use automation to lift stage cubes independently and with actors aboard. The Escape Room had a longer lead time, providing more pre-production work, and produced a highly successful and well-attended run. Later in the year Waiting for Godot saw us include a relaxed performance as part of our accessible show programme. We provided a highly successful workshop to an invited group of service users from the Camphill Trust. The exhibition this year showcased some superb student work and was opened by Emma Wilson, Director of Technical, Production & Costume at the Royal Opera House.

Staged productions, tours and short films

Technical students stage-manage, prop, crew, clothe, design, call, operate, dress, build, and bring to life all the productions listed here with the support and expertise of the teachers guiding them.

The 2022-23 academic year started with two productions: Lucy Prebble’s The Effect, directed by Gari Jones, and Nicholas Wright’s Vincent in Brixton, directed by Jatinder Verma, both providing Theatre Production students with the usual assessment points for the Autumn 1 cycle. Due to Covid, the BA Acting course was catching up on a missed term and the 2019-22 cohort began their third-year productions in January 2022.

Following these productions, came two Shakespeare for Young Audiences productions: Anna Marsland directed Twelfth Night, and The Tempest was directed by Cressida Brown.

During the spring term, three short films were produced and screened at The Garden Cinema, Covent Garden, and at RADA Studios. The films were Takeaway (written by Tony Kaye) directed by Tony Kaye, Teach Me How (written by Callum Cameron) directed by Joshua Archer, and Another Life (written by Jane Gull) directed by Jane Gull.

All films have been recognised nationally and internationally, receiving laurels as winners, finalists and official selections including Crystal Palace International Short Film Festival – Best Film 2023, Covent Garden Short Film Festival – Best Actor 2023, Golden Lion Film Festival – Best Short, Paris International Short Film Festival – Semi-Finalist, London Rocks Film Festival – Official Selection, LA Independent Women Film Festival - Nominee, Greenwich Film Festival – Honourable Mention, The Night of Film Festival – Best Comedy, Iris Education Award 2023 – Finalist, Venice Short Film Festival 2023 – Selection.

Mocap and Emerging Technologies at the Digital Future 2023 conference provided the RADA BA (Hons) Acting students with a professional experience of motion capture.

We also captured the Screen Moments – a short, filmed piece to camera, professionally produced and directed at RADA by Head of Film, TV and Radio Pamela Jikiemi – enabling each graduating RADA student to create a moving image calling-card. Industry feedback to this work has been very positive.

In September 2022, the MA Theatre Lab 10 worked on their successful Public Performance Lab performances of Resistire directed by Guillaume Pige and Home directed by Kristine LandonSmith.

In Autumn 2022, Lab 10 presented the latest edition of their Lab Works Festival, comprised of original student-made performance titled Manifestos.

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In 2023, Lab 11 took Aeschylus’ The Suppliant Woman to the International Youth Festival of Ancient Drama in Messene, Greece.

There were also three productions in the Spring term: Branden Jacob-Jenkins’ Gloria directed by Georgia Green, Stephen Adly Guirgis’ The Motherf***er with the Hat directed by Dadiow Lin, and Daniel Keene’s Wild Cherries directed by Daniel Keene.

Stephen Sondheim’s Company, directed by Nona Shepphard, opened the summer term productions, alongside Samuel Beckett’s Waiting for Godot directed by Joan Oliver, Anton Chekhov’s The Cherry Orchard directed by Ebe Bamgboye, and Patrick Hamilton’s Gaslight directed by Gari Jones.

There were three final productions of the year, all Shakespeare for Young Audiences productions: Romeo and Juliet directed by Darren Raymond, Pericles directed by Rachel Bagshaw, and A Comedy of Errors directed by Majid Mehdizadeh. Each production toured to a school in London. Romeo and Juliet also toured to the META (Meeting of European Theatre Academies) Festival at the Teatro Della Pergola in Florence, Italy, and A Comedy of Errors toured to the Utah Shakespeare Festival in Cedar City, Utah, USA.

Masterclasses and professional development

This year our students had masterclasses and professional development sessions with more than 50 visiting lecturers and professionals, including (among others) Jessie Anand, Kurt Egyiawan, Alma Ferovic-Fazlic, Tristan Fynn-Aiduenu, Judith Hawley, Nick Manzi, Blanche McIntyre, Becky Paris, Jayne Trotman, Emily White and RADA graduates Kwaku Ankomah, Philip Arditti, Stephen Beresford, Chipo Chung, Sean Delaney, Nnabiko Ejimofor, Cynthia Erivo, Dino Kelly, Norah Lopez Holden, Mike Leigh OBE, Tanya Moodie, Rebekah Staton, Imelda Staunton, Sarah Sugarman, Indira Varma and RADA President Sir Kenneth Branagh.

Rickman breakfasts

The Rickman breakfast series continues to bring in speakers from a wide range of experiences and industries. During 2022-23, we were pleased to welcome Roger Kneebone, former trauma surgeon and GP and Professor of Surgical Education and Engagement Science at Imperial; Michelle Moore, leadership coach, author, speaker, advisor and author of Real Wins, Race Leadership and How to Redefine Success; Gwen Adshead, forensic psychotherapist and author of The Devil You Know: Encounters in Forensic Psychiatry; Bernhard Harris Jr., astronaut and first black American to spacewalk; Joon-Lynn Goh, cultural organiser and artist and founder of Migrants in Culture; and Tracy Brabin, Mayor of West Yorkshire.

Student and Academic Services

The Student and Academic Services team incorporates course administration, timetabling, quality assurance, admissions, student services, student records, student casework, governance, and the Student Wellbeing Service. During 2022-23 the department supported the curriculum review process, working with academic teams to advise on quality assurance and to develop operational plans for future years. The team has been compiling documentation in readiness for the periodic review of RADA’s validated provision by King’s College London in November 2023.

In the early part of the year the Registrar undertook a review of academic governance, recommending several changes to the governance structure to streamline reporting and information flow. The new structure was implemented part way through the year and operated successfully for the last two terms. A Corporate Governance Effectiveness Review was also

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completed by the Registrar with support from an independent consultant, resulting in several recommendations for action to be implemented by the Council in 2023-24.

All statutory reporting and compliance requirements were completed on time during the year and the team continued to attend HESA training sessions in preparation for the introduction of Data Futures. Interim data submissions using the Data Futures schema were made successfully in May and August 2023. RADA was audited by UK Visas and Immigration in July 2023 confirming institutional compliance with student sponsorship duties.

Student Wellbeing

A new Head of Student Wellbeing joined the team in November 2022 and prioritised establishing disability support services within the team, recruiting a Disability Coordinator and several non-medical helpers to support students with specific learning difficulties, autism, and mental health issues. There has been a shift in focus to the provision of short-term support within the counselling service, with those needing longer-term intervention referred to disability support or to external services. A new case management system has been implemented to improve record keeping and data security. 124 students accessed the service in 2022-23.

Short Courses

RADA continued to offer online, blended and in-person Short Courses to participants around the world. In-person courses continued to bring in the majority of revenue for the organisation throughout the year. In January 2023 we reinstated RADA’s Foundation Course in Acting, which had been paused since 2020. February saw the launch of our Part-Time Blended Foundation Course in Acting. We successfully piloted our first in-person Short Course outside London in July, launching Fundamentals of Classical Acting at the Manchester Royal Exchange.

Planning for 2023-24 includes continuing to explore RADA’s Short Courses in new locations both in the UK and internationally.

Student awards

Several students were the recipients of sector-wide and competitive awards:

• Tamsin Benn was awarded The Sir Peter and Lady Saunders Laurence Olivier Bursary

• Shakeel Haakim was awarded the Behrens Foundation Bursary (in Conjunction with the Laurence Olivier Bursary)

• Miles Paloma was awarded The Royal Victoria Hall Foundation – Lilian Baylis Award

• Paddy Cunningham was awarded the ITV Tony Warren Bursary Award

6. Graduates and industry

Graduates from 2022 have secured acting and technical roles at:

Abbey Theatre, Almeida, Amazon Prime, Apple TV+, Apollo Theatre, Barbican, BBC, Bolton Octagon, Bridge Theatre, Bristol Old Vic, Bruce Springsteen World Tour, Bush Theatre, Channel 4, Chichester Festival, Cork Opera House, Disney+, Finborough Theatre, Hampstead Theatre, Harold Pinter Theatre, HBO, ITV, Jermyn Street Theatre, Kiln, LaMama Theatre Melbourne, Liverpool Everyman, Longacre Theatre on Broadway, Lyric Theatre Hammersmith, National Theatre, National Theatre Scotland, Netflix, Noël Coward, Old Vic, Park Theatre, Playhouse Theatre, Public Theatre New York, Richmond Theatre, Rose Theatre, Royal Court, Royal Exchange, RSC, Savoy Theatre, Scottish Ballet, Soho Theatre, Sondheim Theatre, Southbank

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Centre, Southwark Playhouse, New Alexandra Theatre, Shakespeare's Globe, Sam Wanamaker Playhouse, Theatre Royal Stratford East, Unicorn Theatre, Wyndham's Theatre, Young Vic.

Graduates from 2022 have presented and been celebrated at the following festivals: Black Panther International Short Film Festival, Boston Independent Film Awards, Camden Fringe, Covent Garden Film Festival, Golden Lion Awards, Independent Spirit Awards, Irish Film Awards London, Kiez Berlin Film Festival, LA Independent Women Film Awards, Paris International Short Film Festival, Raindance Film Festival, Crystal Palace Film Festival, South African International Film Festival, The British Independent Film Awards, The Edinburgh Festival Fringe, VAULT Festival.

Below is a non-exhaustive list of graduate awards and nominations during 2022-23.

Academy Awards

• Andrea Riseborough was nominated for Actress In A Leading Role for To Leslie.

• Women Talking won Best Adapted Screenplay and was nominated for Best Picture, featuring Jessie Buckley and Ben Whishaw in the cast.

• Living was nominated for Best Adapted Screenplay and featured Aimee Lou Wood, Tom Burke, Patsy Ferran and Hubert Burton in the cast.

BAFTA Film Awards

• Aimee Lou Wood was nominated for the EE Rising Star Award.

• Aftersun won Outstanding Debut by a British Writer, Director or Producer and featured Sally Messham in the cast.

BAFTA Television Awards

• Ben Whishaw won Leading Actor at this year’s BAFTA Awards for his performance in BBC drama This Is Going To Hurt.

• David Bishop won his second BAFTA Television Craft Award in the Entertainment Craft Team category for their work on BBC’s Strictly Come Dancing.

Black British Theatre Awards

• For Black Boys Who Have Considered Suicide When the Hue Gets Too Heavy won the Best Production Play Award, featuring Nnabiko Ejimofor.

Emmy Awards

• Matthew Macfadyen won Outstanding Supporting Actor In A Drama Series for his role in Succession. Nominated for a record 25 Emmys, the series also took home the award for Out

• standing Drama Series.

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Golden Globes

• Ralph Fiennes was nominated for Best Actor in a Motion Picture Musical/Comedy for The Menu.

• Imelda Staunton was nominated for Best Television Actress in a Drama Series for her portrayal of Queen Elizabeth II in The Crown. Jonathan Pryce was nominated for Best Supporting Actor in a Television Series for his portrayal of Prince Philip. The Crown was also nominated for Best Drama.

• Taron Egerton was nominated for Best Actor in a Limited Series, Anthology Series or Television Motion Picture for this performance in Black Bird. The series was also nominated for Best Limited Series, Anthology Series or Television Motion Picture.

• • House of the Dragon won Best Drama Series and featured Eve Best and Phoebe Campbell in the cast, as well as Theatre Production graduates in the crew.

Mercury Prize

• Jessie Buckley's For All Our Days That Tear The Heart, a collaborative album with former Suede guitarist Bernard Butler, was nominated for the prestigious Mercury Prize 2022.

The Offies, OffFest and OnComm

• In 2022 Offie Award nominees included Amelia Jane Hankin (Set Design, Red Pitch/ Bush Theatre); Lucía Sánchez Roldán (Lighting Design, The Wonderful World of Dissocia / Theatre Royal Stratford East); Matthew Blaney (Lead Performance in a Play, Not Now / Finborough); Francis Lovehall (Performance Ensemble / Red Pitch / Bush Theatre).

• Elisabeth Gunawan won The OffFest Award at VIOLA! Festival for Unforgettable Girl.

Olivier Awards

• A Streetcar Named Desire was the winner of three Olivier Awards, including Best Actress for Patsy Ferran and Best Revival.

• Arthur Darvill won Best Actor in a Musical for Oklahoma! Nominated for seven Oliviers, the production also won Best Musical Revival.

• Nnabiko Ejimofor and the ensemble were nominated for Best Supporting Actor for For Black Boys Who Have Considered Suicide When The Hue Gets Too Heavy.

• Jerusalem was nominated for Best Revival, featuring Mark Rylance, Kemi Awoderu, Gerard Horan, Jack Riddiford and Greg Snowden.

• Janet McTeer was nominated for Best Actress for Phaedra.

• Robert Hastie was nominated for Best Director for Standing At The Sky's Edge, with the production taking home two Oliviers including Best New Musical.

The Stage Debut Awards

• Elisabeth Gunawan won the Award for Best Performer for her work Unforgettable Girl. The work was created at RADA and subsequently performed in various venues across London winning an OffFest Award 2022.

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• Nnabiko Ejimofor won Best Performer: Ensemble along with the entire cast of For Black Boys Who Have Considered Suicide When the Hue Gets Too Heavy. The event was hosted by award-winning RADA graduate Susan Wokoma.

Industry Liaison

The Industry Liaison Manager has provided bespoke support for students through one-to-ones and group work. ‘Contributing to Industry’ is a newly developed initiative looking at all the aspects of the industry through a holistic approach. This role also supports unsigned graduates with gaining representation or booking professional work, as well as front-facing events for industry to strengthen key relationships.

Graduate Training Programme 2022-23

The Graduate Training Programme, available to all graduates and offered for free to first year graduates, is supported through fundraising, including continued support from the Behrens Foundation. Sessions were delivered with a mixture of in-person and online sessions. The programme for academic year 2022-23 began in September 2022 and ran until July 2023. 10 Graduate Training sessions were held, attended by 40 graduates and consisted of popular singing sessions (group and individual) and Katie Mitchell's Introduction to Directing workshops.

Due to current funding and staffing capabilities, we are pausing the Graduate Training Programme for a term to reassess its impact and how we can fund and deliver the programme going forwards.

Staff engagement with the sector

Staff are continually working within the industry across many areas: as directors, writers, performers, voice coaches, lighting designers, choreographers. This ensures RADA’s professional relevance and currency and includes work on films and in theatre across the country: The National Theatre, The Globe, The Royal Court, RSC, Dominion Theatre, Hampstead Theatre, Theatre Royal, Stratford East, Harold Pinter Theatre/Savoy Theatre, Wyndhams Theatre, The Bush, Theatre by the Lake, Royal Exchange, Watford Palace, Ipswich, The Barbican.

At the same time there is a constant stream of industry specialists teaching on courses as teachers, directors, skills specialists and working on productions in their professional capacity.

7. Anti-racism and equity

The primary focus of RADA’s equity work this year has been the consolidation of its anti-racism agenda. The anti-racism activity that has taken place is based around the five strategic priorities outlined in RADA’s Institutional Anti-Racism Action Plan (IA-RAP). The five priorities are listed below and each details a particular focus for the year:

• Curriculum Review - To ensure that anti-racism and equity were central to the curriculum review thinking, the Director of Equity was an integral part of the process, particularly during the initial research and setting up phases.

• Visible leadership in anti-racism commitment - Every area of activity across the academy was represented by one of the 12 Anti-Racism Leads. During the year the Leads attended

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regular monthly meetings and were responsible for initiating and leading on change within the organisation.

• Targeted anti-racism training for staff and students - Bespoke training continued throughout the academic year, and research went into refining the kind of training required to ensure that all future incoming students and new staff are aware of RADA’s A-R and ED&I commitments.

• Global Majority Recruitment for staff and students - This year the Director of Equity worked closely with the Principal and the Head of HR to scrutinise the staff recruitment processes.

• Global Majority Wellbeing of staff and students - The Director of Equity is aware that limited progress was made in the area of wellbeing this year and plans to work closely with the Head of Wellbeing to expand this in the coming academic year.

RADA Pride

RADA Pride brings together LGBTQ+ students, staff, alumni and allies for talks, workshops, and events. This year included a talk with writer/actor Waleed Akhtar of The P Word (Bush Theatre) alongside co-director and company manager of the show, a Pride Month celebration Cabaret, and 30 staff and students walking as part of the official parade for London Pride 2023.

8. Access and Participation

This has been a year of evaluation and reflection for the Access & Participation department. The year commenced with a review of all Access projects so that we could measure the impact towards access into Higher Education and also on RADA. We conducted a survey of past participants and their destinations. This showed that some projects such as Originate and The Next Stage were more impactful than projects like the Youth Company. We found that we are achieving or are close to achieving many of the BA Acting course targets but are not achieving some for Technical Theatre Arts. To meet need and ensure we are effective with our financial resources we have made the decision to pause the RADA Youth Company for 2023-24. The cost and resource saving will allow the A&P team to focus on our new supported applications programme, RADA Connect, further technical theatre access projects, implement effective evaluation methods, and write the new Access & Participation Plan for submission in Summer 2024.

In March 2023 the Office for Students released the Equality of Opportunity Risk Register (EORR) which identifies 12 sector-wide risks that may affect a student’s opportunity to access and success in higher education. Each risk covers an area where the evidence shows that certain student groups are unlikely to experience equality of opportunity. They have identified which groups are most at risk nationally. Where possible, Higher Education Institution providers should use the EORR to interrogate their own data and explore:

• who is at risk within their student population;

• how they may be affected;

• how they can contribute to addressing the risk either within their own student population or nationally.

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The EORR is part of a new approach to regulating equality of opportunity in higher education. They expect providers to consider the EORR when writing their access and participation plans. This, along with the implementation of the Higher Education Access Tracker (HEAT), will make up some of the new measures in place for 2023-24 to ensure effective widening participation analysis and robust evaluation.

9. Estate and operations

All teaching has now returned to in-person delivery and professional services staff are working in a hybrid way where appropriate. We continued to focus expenditure to basic maintenance and replacement of critical equipment.

10. People

An engaged community delivering excellent services throughout will deliver long-term success. We are committed to delivering world-leading training through our empowered creative practitioners, and the last year has reminded us how much we value the human face-to-face aspects of working. While supporting hybrid working, we encouraged time spent connecting and collaborating with each other in person.

We are proud of the diversity of graduates, staff, and the current student population, and have ensured that recruitment campaigns have been robust and delivered the right mix of talented people to deliver the purpose and vision of the Academy. To further demonstrate our commitment to anti-racism we took positive action by guaranteeing an interview to any applicant meeting the role criteria who self-identifies as being from a Black, Asian or Global Majority background, and/or who self-identifies as D/deaf or disabled.

We continue to support our staff so that they can develop, grow, and gain experience, and have delivered opportunities throughout the Academy. Through the past academic year, we have delivered training on a wide range of subjects including, anti-racism and EDI (Equity, Diversity & Inclusion), suicide awareness and neurodiversity training, alongside line manager development in disciplinaries and investigations, recruitment, and performance management. Individual staff have been supported to attend professional and Higher Education conferences and training and to undertake professional qualifications e.g., HEA fellowships.

To support our staff through these difficult financial times, we delivered a one-off nonconsolidated payment along with a series of financial wellbeing initiatives, which has included the launch of payroll saving with the London Capital Credit Union, and a Cycle-to-Work scheme.

We are committed to having meaningful connections with our colleagues. Through the academic year we held a series of value and culture sessions which were attended by over 60% of the workforce, and which aided in the formation of the Academy’s new values and mission statement. We are committed to regular transparent communication through a variety of means; weekly staff newsletter, twice termly Town Hall meetings and regular Staff Forum sessions. These have delivered an increase in satisfaction score from +25.2 to +66.7 in the past year through our pulse engagement survey. There is always work to be done on effective and inclusive communication and we are constantly looking at ways to ensure staff are

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involved and kept updated about possibilities, involvement in decision making, and organisational changes.

We have clarified our onboarding and induction process and are pleased to see a reduction in our voluntary turnover in line with the 2022-23 people plan.

Over the next year we aim to build on these foundations and focus on the delivery of worldleading training.

11. Income Generation and Sustainability

RADA Business Review

Turnover for the year was £7.7m (2022: £6.1m) with a profit before taxation of £1.2m (2022: £0.8m).

RADA Business delivered both increased revenue and profits during the year.

We believe that diverse teams deliver the highest performance. Diversity, inclusion, and antiracism are at the heart of our values and determine our recruitment, culture, and ethical business practices.

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This year we recruited 11 new members to the team and two left us. This team delivered the best performance on our journey to date with notable advances in all areas of the business resulting in revenue and profit growth of 26% and 42% respectively.

Our core training business grew significantly and important wins in transformation and longterm preferred supplier agreements underlined our value proposition in change leadership. These agreements contribute to current performance and to longer term business resilience.

We strengthened leadership by appointing all five members of the Leadership Team to the Board, including a dedicated Finance Director, and refreshing our Non-Executive team, by rotation, led by a new Chair appointed in September 2022 following the retirement of the previous Chair.

A donation of £1,168k (2022: £686k) will be made to RADA under a deed of covenant.

Fundraising

The 2022-23 financial year remained a challenging environment for fundraising. We are enormously grateful for the generosity of our many supporters, funders, and partners, who collectively raised £1m this financial year. Our income includes support from major donors, trusts and foundations, public funding grants, individual donations, Members and Patrons, sponsorship and corporate partners, and legacies. The amounts are recorded within the appropriate categories of the Statement of Financial Activities. In particular, we acknowledge the generous support of Jerry Murdock, Anne Peck, Charles Holloway, Stephen Waley-Cohen, Philip & Linda Carne, The Leverhulme Trust, and The Clothworker’s Foundation for their continuing support, and we acknowledge our long-standing Principal Partner Warner Bros. Discovery, and our valuable partnership with AXA XL.

Fundraising is managed through building on-going relationships with all prospective and existing supporters, regardless of the route of the donation. RADA’s fundraising is conducted by its employees, supported voluntarily by members of RADA Council and the Development Board. The fundraising team of five, led by the Development Director, is trained to ensure they manage the protection of any vulnerable people they may come into contact with.

RADA upholds the highest standard of fundraising practice. We are registered with the Fundraising Regulator and adhere to their Code of Fundraising Practice for the UK, noting no failures to comply with this and no fundraising complaints in the period. We abide by the key principles and behaviours of a fundraising organisation set out by the regulator: to be legal, open, honest, and respectful.

We undertake to comply with relevant law and regulations, including the Proceeds of Crime Act, data protection, tax and Gift Aid legislation, and Charity Commission guidance.

This year we raised a total of £473k in unrestricted funds, used to help cover the costs incurred by our core training, and to maintain teaching excellence. Supporting our students throughout their studies is essential, and we secured £286k in scholarship funding. Our commitment to Access and Participation, was partly funded through the Christmas Big Give campaign which raised £13k, alongside donations from trusts and individuals.

During the year our Stage Critical fundraising campaign continued, with a focus to support students, invest in training, and deliver RADA’s strategic priorities during the pandemic. With RADA’s priority now being to stabilise and continue to recover while developing our new business plan, we brought this particular campaign to a close at the end of the academic year,

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bringing the total raised over the two years to £915,440. However, even though we have moved beyond the critical phase, there remains an urgent need to ensure sustainability for the financial security of the organisation and we are currently preparing to embark on a new fundraising campaign.

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 principally with individuals who have a personal connection to RADA, trusts and foundations and corporate organisations, and we do not use intrusive or persistent approaches.

As a charity, the support of our donors and funders ensures RADA can continue our worldleading training. RADA’s immersive conservatoire training delivers a minimum of 35 hours of teaching each week from industry specialists and leading academics, meaning that every student receives intensive support to develop their craft and become industry ready. In addition, we must continue to develop and respond to changes in the industry, deepening the impact we create for and with the Creative Industries sector on a national and international scale in order to create graduates who are the next generation of leaders. Fundraising is an increasingly important part of our income generation plans to ensure recovery following the pandemic, and so RADA can remain financially sustainable and resilient. We continue to fundraise so we can invest in our courses and our people, and so that our teaching is of the highest standard, reflects our values and is fully aligned with UK industry practice.

Communications and marketing

Student recruitment campaign targets for 2023-24 were aligned with RADA's Access and Participation targets and HESA reporting requirements. Our main focus was increasing diversity in applications to our technical courses. The FdA in Technical Theatre and Stage Management included a rise in Black and Global Majority applicants from 8% to 13%, and a rise from 37% to 39% for disability.

In BA Acting, we saw a return to pre-pandemic application levels, maintaining Black and Global Majority applications at 22% and an increase of UK-based Global Majority applications from 10% to 16%, and from 23% to 32% for disability. Applications to our MA Theatre increased by 39%, with 40% Black and Global Majority applicants and 61% international applications.

The campaign involved boosting social media engagement, including TikTok, Instagram stories, reels, and live Q&As. We streamlined administrative processes in collaboration with the Admissions team to improve applicant experience. Additionally, the team continued to support revenue generation for Short Courses through targeted campaigns and new content, and audience development campaigns for productions.

Public affairs

This year we continued developing a network of policymakers and influencers across Whitehall, with a focus on the DCMS and DfE. This is with the aim of identifying funding opportunities and making sure that RADA has informed and enthusiastic advocates across Westminster who are aware of RADA’s current and pressing financial challenges.

We met with the then Secretary of State for DCMS, Michelle Donelan, who visited RADA, meeting students, staff and engaging enthusiastically in an informed discussion about the skills shortage in the creative industries, and what can be done to address this challenge. Since then, we have engaged with Meg Powell-Chandler, the Special Advisor for Lucy Frazer, the new Culture Secretary, Gillian Keegan, the Education Secretary, and Lord Parkinson, the

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Arts Minister. We attended the Conservative Party Conference and will attend both Conservative and Labour Conferences in 2023.

More locally we engaged further with the London Mayor’s senior policy advisor on culture, Chris McQuiggin, and with Sabrina Francis, the Camden Council cabinet member for Culture and Young People. Sabrina had a tour of RADA, met with the Principal, Vice Principal and the Director of Access and Participation, and also saw some of the Tree, the industry showcase of the graduating year.

12. 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 2023 and 31 July 2022:

	2023	2022
	£000	£000
Student and other fees	4,060	3,103
HE grants	2,119	2,216
Bursary funding	279	478
Other fundraising	469	796
Donations in kind	37	53
Investment income	109	105
Other income	225	80
Royalties	23	28
Total Academy Income	7,321	6,859
RADA Business Turnover	7,694	6,087
RADA Business expenditure	(6,532)	(5,271)
RADA Business operating profit	1,162	816
RADA operating costs	(8,322)	(8,090)
Bursary costs	(433)	(532)
Donations in kind	(37)	(53)
Net deficit from principal activities	(309)	(1,000)
Reconciliation to SOFA (page 33)
Add endowment donations	258	718
Add TCIF capital grant	32	12
Deduct depreciation and impairment	(794)	(781)
Total income less total expenditure	(813)	(1,051)

As discussed in this Annual Report, Short Courses has seen a significant growth this year, supporting an overall increase of 7% in Academy income. At the same time, we have maintained the expenditure necessary to sustain the quality of our world-leading teaching with only a 3% increase in our operating costs. RADA Business has also had an exceptional year with profits up by 42%. The net deficit has been met from reserves.

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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 including 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 Finance Director.

Reserves Policy

The general unrestricted reserves of RADA at 31 July 2023 were £0.6m (2022: £0.9m, see note 22). These are offset by long term liabilities relating to the finance lease (note 15). Annual payments towards this continue to be met from operating income. The pension fund’s assets at 31 July 2023 are estimated to be greater than the fair value of its liabilities, but no surplus has been recognised as it is not certain at this point that any benefit will be returned to RADA.

RADA’s total reserves of £33.8m are made up of the following amounts (as shown in notes 21 and 22):

and 22):
	2023 £m 2022 £m
Fixed Assets	31.0 31.4 Land, buildings and equipment used for charitable purposes
Endowment funds	6.9 6.9 Invested to provide future income
Unrestricted	0.6 0.9 General reserve
Restricted funds	0.4 0.6 Specific project funding
Long term lease	(5.1) (5.2) To be met from operating income
	33.8 34.6

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. This is currently estimated at £7m. The unrestricted reserves at July 2023 were £0.6m which is lower than target. The Principal and leadership team are committed to rebuilding RADA’s reserves over the coming years.

Going concern

Council considers there are no material uncertainties about the Academy’s ability to continue as a going concern; RADA has long-term liabilities relating to the lease under which it occupies 20-22 Chenies St (see note 15) and expects to continue to meet this liability 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 an 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 £0.6m of unrestricted reserves which will be available if needed to mitigate variations in self-generated 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.

Pay policy for senior staff

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 20 to the accounts.

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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 the Council) and normally increase 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.

13. 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.

14. 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 2022 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 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. The Principal is RADA’s Accountable Officer and has delegated authority from the Council for academic, corporate, financial, estate and people management.

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 and 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. The Anti-racism Committee reviews the effectiveness of Council

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operations from an anti-racism perspective and makes recommendations to develop and maintain inclusive working practices.

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 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 ensure that the Council is composed of members with the right balance of skills and experiences to support RADA’s needs.

Trustee Induction and Training

New members are given agendas, papers, and minutes from the previous year's Council meetings 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 meeting with the Chair and receive an induction into RADA’s governance structure and trustee responsibilities from the Secretary. Trustees are required to undertake regular safeguarding training.

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 have been affected by Covid and the wider economy (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). As the risks associated with the pandemic have diminished, we have focused on growing RADA Business and Short Courses income, while controlling costs associated with Higher Education provision, in order to support the high cost of training while rebuilding our reserves. 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.

The risks are reviewed regularly through a risk register monitored by the Audit and Risk Committee. Council feels that RADA is adapting satisfactorily to the current financial and regulatory environments. The Audit and Risk Committee receives regular reports from

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management and internal audit on emerging risks and their management. These are reported to Council. The Audit and 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:

• 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

President Sir Kenneth Branagh

Trustees The following have served as members of Council since 1 August 2022: Chair Marcus Ryder MBE Members S J K Barratt to 13 October 2022 Judith Blake, the Baroness Blake of Leeds from 1 September 2022 CBE Professor Judith Buchanan from 1 September 2022 Lolita Chakrabarti Judith Chan from 1 January 2023 Chipo Chung Tim Clark OBE Paul Clay to 23 March 2023 Sir Martin Donnelly to 29 June 2023 Buster Dover to 23 March 2023 Rishi Madlani Richard Middleton OBE from 27 July 2023 Tanya Moodie to 23 March 2023 Maxine Peake John Romeo Tanya Rose Robin Soans to 24 November 2022 Helen Selwood Shona Spence Caroline Spicer Tamar Thomas Miranda Wayland Staff Governors Niamh Dowling (Principal) (Acting) Elizabeth Ballinger from 2 October 2023 Mel Jessop to 27 June 2023 (TTSM) Dan Collins (Other) Michelle Snyder Student Millie Boardman (Acting) from 26 October 2022 to Governors 14 July 2023 Joanie Diamond (Acting) from 18 October 2023 Kath Morton (Technical Theatre) from 26 October 2022

Senior Niamh Dowling Principal, CEO and Accountable Officer Leadership Dan Collins Head of Scenic Art and Interim Co-Director of TTA (from 6 Team February 2023 to 31 July 2023)

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Diane Favell Head of Wardrobe and Interim Co-Director of TTA (from 6 February to 31 July 2023), Director of Technical Training (from 1 August 2023) Axa Hynes Director of Access & Participation Fraser Jopp Director of Finance & Operations (to 30 June 2023) Jane O’Gara Interim Finance Director (from 3 July 2023) Joan Oliver Director of Equity Martin Prendergast Director of Development & Public Affairs (to 5 September 2022) Mark Simpson Programme Director for Technical Training and Stage Management (to 3 February 2023) Lucy Skilbeck Director of Actor Training Helen Slater Vice-Principal and Director of Communications and Marketing Angela Taylor Registrar and Secretary (from 25 September 2023) Laura Witt Registrar and Secretary (to 12 July 2023)

Sub-Committees of Council

Finance and General Purposes Committee Remuneration Committee Chair S J K Barratt (to 13 October 2022) Caroline Spicer (Chair from 13 October 2022) Members Judith Chan (from 9 March 2023) Tim Clark Paul Clay (to 23 March 2023) John Romeo (co-opted, from 9 March 2023) Audit and Risk Committee Chair Helen Selwood (Co-Chair from 14 October 2022) Shona Spence (Co-Chair from 14 October 2022) Members Rishi Madlani Nominations Committee Chair Marcus Ryder MBE Members Judith Buchanan (co-opted, from 21 August 2023) Lolita Chakrabarti Tim Clark Robin Soans (to 24 November 2022) Training Committee Chair Robin Soans (to 24 November 2022) Tamar Thomas Members Chipo Chung Paul Clay (to 23 March 2023) Joe Kloska (co-opted) Tanya Moodie (to 23 March 2023) Anti-Racism Committee Chair Marcus Ryder MBE

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Members

Chipo Chung Tim Clark Maxine Peake

Attendance

Attendance at Council and other meetings by Trustees in the year to 31 July 2023 was as follows:

Name Council F&GP Audit Nominations

Marcus Ryder MBE 5/5 4/4 S J K Barratt (to 13 October 2022) 0/0 1/1 Judith Blake, Baroness Blake of Leeds CBE (from 1 September 2022) 4/5 Professor Judith Buchanan 4/5 1/1 Lolita Chakrabarti 3/5 2/3 Judith Chan (from 1 January 2023) 4/4 2/2 Chipo Chung 3/5 Tim Clark 5/5 4/4 4/4 Paul Clay (to 23 March 2023) 2/3 3/3 Sir Martin Donnelly (to 29 June 2023) 3/4 Buster Dover (to 23 March 2023) 3/3 Rishi Madlani 4/5 3/4 Richard Middleton (from 27 July) 1/1 Tanya Moodie (to 23 March 2023) 0/3 Maxine Peake 1/5 John Romeo 5/5 Tanya Rose 3/5 Helen Selwood 5/5 4/4 Robin Soans (to 24 November 2022) 0/1 Shona Spence 4/5 4/4 Caroline Spicer 5/5 4/4 Tamar Thomas 5/5 Miranda Wayland 3/5 Staff Governors Niamh Dowling 5/5 Mel Jessop (to 27 June 2023) 1/4 Dan Collins 3/5 Michelle Snyder 5/5 Student Governors Millie Boardman (from 26 October to 14 July 2023) 1/4 Katherine Morton(from 26 October) 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 LLP Chartered Accountants 71 Queen Victoria Street London EC4V 4BE Bankers National Westminster Bank plc 250 Bishopsgate London EC2M 4AA Solicitors Womble Bond Dickinson LLP 1 Whitehall Riverside Leeds LS1 4BN Mills & Reeve Botanic House 100 Hills Road Cambridge CB2 1PH Investment Managers McInroy & Wood Ltd Easter Alderston Haddington East Lothian EH41 3SF

15. 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.

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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.

The annual report was approved by Council on 23 November and signed on its behalf by:

Marcus Ryder Marcus Ryder (Dec 19, 2023 17:35 GMT) …………………………….. Marcus Ryder Chair of Council

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16. 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 2023 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 2023 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 Regulatory Advice 9: 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 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

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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 Regulatory Advice 9: 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 27-28, 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 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.

30

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 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

31

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

Date:

Saffery 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 2023

note Income and Endowments from: Grants, donations and legacies Charitable Activities Other trading activities Investment income Total Income 2 Expenditure on: Raising funds- commercial trading Raising funds- fundraising Raising funds- investment management Charitable activities Total expenditure 3-6 Total income less total expenditure Net gains on investment 10 Net income for the year Transfers between funds 22 Net income after transfers Other recognised gains/ losses Net actuarial gains on defined pension benefit schemes 7 Net movement in funds Total funds brought forward Total funds carried forward

Unrestricted funds Restricted Funds Endowment Funds Total Funds Total Funds 2023 £000 2023 £000 2023 £000 2023 £000 2022 £000 FC50 510 299 258 1,067 2,019 6,436 - - 6,436 5,411 7,694 - 7,694 6,141 4 - 105 109 105 14,644 299 363 15,306 13,676 6,090 - - 6,090 4,792 320 - - 320 426 7 - 55 62 17 8,547 1,100 - 9,647 9,492 14,964 1,100 55 16,119 14,727 (320) (801) 308 (813) (1,051) (7) - 2 (5) 46 (327) (801) 310 (818) (1,005) 182 54 (236) - - (145) (747) 74 (818) (1,005) - - - - 406 (145) (747) 74 (818) (599) 7,171 20,561 6,896 34,628 35,227 7,026 19,814 6,970 33,810 34,628

All activities derive from continuing operations The notes on pages 37 to 58 form an integral part of these accounts

33

ROYAL ACADEMY OF DRAMATIC ART

Analysis of consolidated prior year total funds

note Income and Endowments from: Grants, donations and legacies Charitable Activities Other trading activities Investment income Total Income 2 Expenditure on: Raising funds- commercial trading Raising funds- fundraising Raising funds- investment management Charitable activities Total expenditure 3-6 Total income less total expenditure Net gains on investment 10 Net income for the year Transfers between funds 22 Net income after transfers Other recognised gains/ losses Net actuarial gains on defined pension benefit schemes 7 Net movement in funds Total funds brought forward Total funds carried forward

Unrestricted funds Restricted Funds Endowment Funds Total Funds 2022 £000 2022 £000 2022 £000 2022 £000 713 588 718 2,019 5,399 12 5,411 6,141 - 6,141 11 94 105 12,264 600 812 13,676 4,792 - 4,792 426 - 426 2 15 17 8,435 1,057 9,492 13,655 1,057 15 14,727 (1,391) (457) 797 (1,051) 13 - 33 46 (1,378) (457) 830 (1,005) 144 (144) (1,378) (313) 686 (1,005) 406 - 406 (972) (313) 686 (599) 8,143 20,874 6,210 35,227 7,171 20,561 6,896 34,628

34

ROYAL ACADEMY OF DRAMATIC ART

Balance Sheets at 31 July 2023

Balance Sheets at 31 July 2023
			Group		Academy
		2023	2022	2023	2022
	notes	£000	£000	£000	£000
Fixed Assets
Intangible assets	8	103	88	0	0
Tangible assets	9	30,853	31,326	30,836	31,320
Investments held as fixed assets	10	5,497	6,473	5,499	6,475
Total fixed assets		36,453	37,887	36,335	37,795
Current Assets
Debtors	12	1,740	3,580	1,603	2,180
Cash at bank and in hand		4,018	1,786	2,675	1,571
Total current assets		5,758	5,366	4,278	3,751
Current Liabilities
Creditors: amounts falling due within
one year	13	(3,269)	(3,370)	(1,832)	(1,829)
Net current assets		2,489	1,996	2,446	1,922
Total assets less current liabilities		38,942	39,883	38,781	39,717
Creditors: amounts falling due after
more than one year	15	(5,107)	(5,230)	(5,107)	(5,230)
Provisions for liabilities		(25)	(25)	0
Total net assets		33,810	34,628	33,674	34,487
Represented by:
Unrestricted Revenue funds	21,22	(4,473)	(4,326)	(4,490)	(4,467)
Designated Fixed Asset funds	21,22	11,499	11,497	11,380	11,497
Total unrestricted funds		7,026	7,171	6,890	7,030
Restricted Revenue funds	21,22	356	643	356	643
Restricted Fixed Asset funds	21,22	19,458	19,918	19,458	19,918
Total restricted funds		19,814	20,561	19,814	20,561
Endowment Revenue funds	21,22	6,970	6,896	6,970	6,896
Total endowment funds		6,970	6,896	6,970	6,896
Total charity funds		33,810	34,628	33,674	34,487

The financial statements on pages 33 to 58 were approved by Council on 23 November 2023 and signed on its behalf by:

Marcus Ryder

Marcus Ryder (Dec 19, 2023 17:35 GMT)

Marcus Ryder MBE Niamh Dowling Chair of Council Accountable Officer

Caroline Spicer Member of Council

The notes attached on pages 37 to 58 form an integral part of these accounts

35

ROYAL ACADEMY OF DRAMATIC ART

Consolidated cashflow statement for the year ended 31 July 2023

notes	2023 £000 2022 £000
Cash Flow from Operating Activities
Net cash used by operating activities as shown below A Cash flows from investing activities Other investments income including rents from investments Purchase of property, plant and equipment Purchase of intangible assets Proceeds from sales of investments Purchase of investments Net Cash generated by investment activities B Cash Flows from financing activities Repayments of amounts borrowed Receipt of endowment Net cash used in financing activities C Overall cash used by all activities A+B+C Cash movements Change in cash and cash equivalents from activities in year Cash and cash equivalents at 1 August Cash at bank and in hand 31 July Reconciliation of net income to net cash flow from operating activities Net income as shown in the Consolidated Statement of Financial Activities Adjustments for: Depreciation Amortisation of intangible assets Net losses/ (gains) on investment assets incl mgmt fees Dividends, interest and rents from investments Endowment income Increase in defined benefit pension scheme funds less unrealised gains Decrease/ (Increase)in debtors Increase in creditors excluding loans Net cash used by operating activities Analysis of cash and cash equivalents Cash in hand at the year end 31 July Total cash and cash equivalents 17	1,345 (2,313) 107 105 (247) (64) (89) (132) 1,015 2,267 (107) (105) 679 2,071 (110) - 318 1,268 208 1,268 2,232 1,026 2,232 1,026 1,786 760 4,018 1,786 (818) (1,005) 719 737 74 44 68 (46) (107) (105) (258) (718) - (86) 1,781 (2,179) (114) 1,045 1,345 (2,313) 4,018 1,786 4,018 1,786

36

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2023

1 Accounting policies

Policies relating to the production of the accounts. X1A5T

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) including the Charities SORP (FRS 102) - 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 Academy and its wholly owned subsidiary, RADA in Business Limited (“RADA Business”, together "the Group"), 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 X1A6T

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 arising from 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 2021-22, but retains £0.6m of unrestricted reserves (see note 21) 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. Following the year end, RADA has exercised its power at section 284A of the Charities Act 2011 to borrow £802k from the Category A funds to support medium term liquidity.

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). Although the scheme valuation shows that the scheme is fully funded at the balance sheet date, no surplus has been recognised as the recoverability of any surplus by RADA is not sufficiently certain.

37

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2023

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).

Determining when income from residuary legacies should be recognised within income often requires judgement. The Charity’s accounting policy with respect to legacies is set out below.

Signifcance of fnancial 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.

X1A7T

Policies relating to categories of income and income recognition. X1A8T

-

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.

Accounting for other deferred income and income received in advance

Where terms and conditions relating to income 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

38

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2023

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 in 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.

AT

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.

A5T

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

A2T

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.

A3T

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).

A4T

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.

A7T All gains on fixed asset investments, whether realised or unrealised, are included in the Statement of Financial Activities.

Intangible assets

Intangible assets are initially recognised at their original cost and are written off in equal instalments over their estimated useful economic life. The estimated useful economic life of the database is three years.

A8T

39

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2023

Tangible fxed 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.

Notes to the Accounts for the year ended 31 July 2023

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 A9T 10% straight line

Accounting for capital grants and fxed 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 X1 the balance sheet at the full cost of acquisition or subsequent revaluation.

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.

40

ROYAL ACADEMY OF DRAMATIC ART

Notes to the Accounts for the year ended 31 July 2023

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.

X1A25T

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.

X1A26T

Pensions - defned 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.

X1A27T

Pensions - defned beneft 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 the RADA, and the irrecoverable amount is therefore included in the relevant costs in the Statement of Financial Activities.

41

ROYAL ACADEMY OF DRAMATIC ART

Notes to the accounts for the year ended 31 July 2023

2 Analysis of incoming resources

Donations and legacies Fundraising (donations and grants) Coronavirus job retention scheme Royalties Donated goods and services Legacies Total from donations and legacies Charitable activities HE Fees- UK Undergraduate HE Fees- UK Postgraduate HE Fees-EU Undergraduate HE Fees- EU Postgraduate HE Fees-Non EU Undergraduate HE Fees- Non EU Postgraduate Short Course income Course fees and education contracts	Unrestricted funds Restricted Funds Endowment Funds Total Funds Total Funds 2023 £000 2023 £000 2023 £000 2023 £000 2022 £000 450 299 - 749 999 - - - - 17 23 - - 23 28 37 - - 37 53 - - 258 258 922 510 299 258 1,067 2,019 1,166 - - 1,166 1,297 195 - - 195 152 19 - - 19 56 10 10 20 347 - - 347 192 167 167 121 2,156 - - 2,156 1,145 4,060 - - 4,060 2,983
OFS Teaching Grant	1,430 - - 1,430 1,425
Research England other grants Capital Grants (TCIF) Audition fees Outreach income Ticket and audience income Sundry income	689 - - 689 791 32 - - 32 12 2,151 - - 2,151 2,228 105 - - 105 120 - - - - 2 56 - - 56 36 64 - - 64 42 225 - - 225 200
Total from charitable activities	6,436 - - 6,436 5,411
Other trading activities RADA Business Turnover 11 7,694 - - 7,694 6,087 Fundraising events - - - - 54 7,694 - - 7,694 6,141 Investment income Income on fixed asset investments 4 - 105 109 105 4 - 105 109 105 Total incoming resources 14,644 299 363 15,306 13,676

42

ROYAL ACADEMY OF DRAMATIC ART

Notes to the accounts for the year ended 31 July 2023

2 Prior Year

Donations and legacies Fundraising (donations and grants) Coronavirus job retention scheme Royalties Donated goods and services Legacies Total from donations and legacies Charitable activities HE Fees- UK Undergraduate HE Fees- UK Postgraduate HE Fees-EU Undergraduate HE Fees- EU Postgraduate HE Fees-Non EU Undergraduate HE Fees- Non EU Postgraduate Short Course income Course fees and education contracts OFS Teaching Grant Research England other grants Capital Grants (TCIF) Audition fees Outreach income Ticket and audience income Sundry income	Unrestricted funds Restricted Funds Endowment Funds Total Funds 2022 £000 2022 £000 2022 £000 2022 £000 528 371 100 999 - 17 - 17 28 - - 28 53 - - 53 104 200 618 922 713 588 718 2,019 1,297 - - 1,297 152 - - 152 56 - - 56 20 20 192 - - 192 121 121 1,145 - - 1,145 2,983 - - 2,983 1,425 - - 1,425 791 - - 791 - 12 - 12 2,216 12 - 2,228 120 - - 120 2 - - 2 36 - - 36 42 - - 42 200 - - 200
Total from charitable activities	5,399 12 - 5,411
Other trading activities RADA Business Turnover Fundraising events Investment income Income on fixed asset investments Total incoming resources	6,087 - - 6,087 54 - - 54 6,141 - - 6,141 11 - 94 105 11 - 94 105 12,264 600 812 13,676

43

ROYAL ACADEMY OF DRAMATIC ART

Notes to the accounts for the year ended 31 July 2023

3 Analysis of expenditure

Raising funds RADA Business expenditure Fundraising Investment management Total raising funds Charitable activities Core courses Non-core courses Access and participation Theatre and other presentation costs Other charitable activities Total charitable activities Total expenditure

Direct costs Grants made to individuals Allocated support costs Depreciation and impairment Total Total 2023 £000 2023 £000 2023 £000 2023 £000 2023 £000 2022 £000 6,007 - - 83 6,090 4,792 320 - - - 320 426 62 - - - 62 17 6,389 - - 83 6,472 5,235 2,701 - 2,208 465 5,374 5,618 957 - 773 165 1,895 1,126 364 433 305 63 1,165 1,029 2 - 398 - 400 540 107 26 662 18 813 1,179 4,131 459 4,346 711 9,647 9,492 10,520 459 4,346 794 16,119 14,727

Grants made to individuals consist of bursary payments to students.

Core courses are the Foundation degree and BA Courses in Acting and Technical Theatre and Stage Management. Non-core courses include MA courses, foundation courses and short courses as well as Widening and Participation and Opportunity activities such as the Acting and Technical Youth Companies

The basis for allocation of support costs has been updated this year. Support costs and depreciation included in the above have been allocated to the activities above by the following amounts:

Core courses Non-core courses Access and participation Theatre and other presentation costs Other charitable activities	Governance Finance Admin and support costs Premises and other overheads Total 2023 £000 2023 £000 2023 £000 2023 £000 2023 £000 2022 £000 20 166 1,243 1,243 2,672 2,281 7 59 431 441 938 460 3 22 174 168 367 196 0 0 398 1 399 221 83 470 212 (84) 681 514 113 717 2,458 1,769 5,057 3,672

44

ROYAL ACADEMY OF DRAMATIC ART

Notes to the accounts for the year ended 31 July 2023

3 Analysis of expenditure (contd.)

Prior Year Raising funds RADA Business expenditure Fundraising Investment management Total raising funds Charitable activities Core courses Non-core courses Access and participation Theatre and other presentation costs Other charitable activities Total charitable activities Total expenditure	Direct costs Grants made to individuals Allocated support costs Depreciation and impairment Total 2022 £000 2022 £000 2022 £000 2022 £000 2022 £000 4,792 - - - 4,792 426 - - - 426 17 - - - 17 5,235 - - - 5,235 3,337 - 1,796 485 5,618 666 - 362 98 1,126 301 532 154 42 1,029 319 - 174 47 540 665 - 405 109 1,179 5,288 532 2,891 781 9,492 10,523 532 2,891 781 14,727

RADA allocates support costs to Governance and Charitable Activities as set out below and then further apportions the support costs between the key charitable activities undertaken (see table above).

Core courses Non-core courses Access and participation Theatre and other presentation costs Other charitable activities	Governance Finance Admin and support costs Premises and other overheads Total 2022 £000 2022 £000 2022 £000 2022 £000 2022 £000 29 487 816 949 2,281 6 99 164 191 460 2 42 70 82 196 3 47 79 92 221 6 110 184 214 514 46 785 1,313 1,528 3,672

4 Specific expenditure

The net movement in funds in the financial year is stated after charging:

Remuneration of auditors for audit services Remuneration of auditors for non audit services Access and participation expenditure Access investment (including salaries) Financial support to students Support for disabled students	2023 £000 2022 £000 37 44 2 2 2023 £000 2022 £000 375 228 433 420 91 112 899 760

45

ROYAL ACADEMY OF DRAMATIC ART

Notes to the accounts for the year ended 31 July 2023

5 Staff costs and emoluments Salary costs Gross salaries Employers' National Insurance Employers' contribution to defined contribution pension scheme Other employee benefits Total salaries, wages and related costs Redundancy, termination and compensation payments Redundancy and other severance costs Compensation payments in lieu of notice Redundancy or other severance payments were made up of 4 staff (2021-22: 1) Numbers of employees The average number of total staff employed in the year was The estimated full time equivalent number of staff in the year Charitable activities Commercial trading Fundraising Management and administration The estimated number of full time equivalent staff deployed in different activities in the year was

Total Total 2023 £000 2022 £000 6,987 6,504 793 686 233 202 - 22 8,013 7,414 2023 £000 2022 £000 159 25 45 204 25 193 182 142 118 2023 £000 2022 £000 90 70 33 29 4 4 15 15 142 118

Note that the basis for calculation of full time equivalent staffing levels has changed and as a result, the 2023 data is not directly comparable with 2022 data. Except as noted in note 20, 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.

Total salaries and other benefits received by key management personnel were	2023 £000 2022 £000 782 723

Key management personnel are considered to be the Principal and senior leadership team of RADA.

The number of employees who received emoluments including taxable benefits (but excluding employers' pension contributions) in the following bands were:

£60,001 - £70,000 £70,001 - £80,000 £80,001 - £90,000 £90,001 - £100,000 £100.001 - £105,000 £105,001 - £110,000 £110,001 - £115,000 £120,001 - £125,000 £130,001 - £135,000 £150,001-£155,000 £170,000 - £175,000 £220,001-£225,000 £245,001-£250,000	2023 No 2022 No 6 6 1 3 3 1 2 1 1 1 1 1 1 1 1 13 17

46

ROYAL ACADEMY OF DRAMATIC ART

Notes to the accounts for the year ended 31 July 2023

5 Staff costs and emoluments (contd.)

The pension details of such higher paid staff were as follows: Contributions to defined contribution pension scheme Numbers of such staff to whom benefits are accruing: Under defined contribution schemes Emoluments for the Principal were as follows: The remuneration in the year was Pension contributions paid by the employer Total remuneration package included in salaries above	Total Total 2023 £000 2022 £000 36 59 11 17 2023 £000 2022 £000 134 22 5 1 139 23

Based on salaries paid in July 2023, the Principal's basic salary is 2.8 times the median pay of staff (2022: 3.3 times) where the median pay is calculated on a full time basis for the salaries paid by RADA to its staff. The same ratio applies when total remuneration is considered.

When considering the Principal'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 Principal. Both RADA's and the Principal's performance over a number of years are considered. Benchmarks from the higher education, arts and charities sectors are used.

6 Defined Contribution Pension Scheme

The Academy operates a defined contribution auto enrolment pension scheme administered by Legal and General, the costs of which are shown above. The Academy contributes 4% of basic salary for all eligible employees (2022: 4%). All costs are treated as an expense of unrestricted funds.

47

ROYAL ACADEMY OF DRAMATIC ART

Notes to the accounts for the year ended 31 July 2023

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 2022 and updated to 31 July 2023 by a qualified actuary, independent of the Scheme's sponsoring employer. The major assumptions used by the actuary are shown below.

The most recent full actuarial valuation at 31st March 2022 showed a deficit of £942,000. However, based on the estimated improvement in the funding position, it has been agreed that no recovery plan contributions will be payable.

----- Start of picture text -----
Present values of defined benefit obligation, fair value of assets and defined 2023 2022 2021
benefit liability £000 £000 £000
Fair value of plan assets 6,976 7,430 8,457
Present value of defined benefit obligation 4,732 6,368 8,949
Asset ceiling (2,244) (1,062)
Defined benefit (liability) to be recognised
- -
(492)
Reconciliation of opening and closing balances of the defined benefit obligation 2023 2022
£000 £000
Defined benefit obligation at start of period 6,368 8,949
Interest expense 219 140
Actuarial (gains) (1,633) (2,346)
Benefits paid and expenses (222) (375)
Defined benefit obligation at end of period 4,732 6,368
(see sensitivity analysis below)
Reconciliation of opening and closing balances of the fair value of plan assets 2023 2022
£000 £000
Fiar value of plan assets at start of period 7,430 8,457
Interest income 256 133
Actuarial gains / (losses) (488) (878)
Contributions by the employer 24 93
Benefits paid and expenses (246) (375)
Fair value of plan assets at end of period 6,976 7,430
----- End of picture text -----

The actual return on the plan assets over the period to 31 July 2023 was a loss of £232k (2022: £745k).

During the year, the plan assets were moved from the Baillie Gifford Diversified Growth Fund to a low risk portfolio of gilts, credit and cash with Legal and General Investment Management Ltd. There is no investment in the Academy's own financial instruments or any property occupied or other assets used by the employer.

Reconciiation of opening and closing asset ceiling	2023 £000 2022 £000
Asset ceiling at end of prior year	1,062
Interest income	37
Remeasurement - change in asset ceiling	1,145 1,062
Asset ceiling at end of year Defined benefit cost recognised in profit or loss Net interest cost	2,244 1,062 2023 £000 2022 £000 24 7

48

ROYAL ACADEMY OF DRAMATIC ART

Notes to the accounts for the year ended 31 July 2023

7 Defined benefit pension scheme (contd.)

----- Start of picture text -----
|||| |---|---|---| |Total|Total| |Defined benefit cost recognised in other recognised gains|2023|2022| |£000|£000| |(Loss)/ gain on plan assets excluding amounts included in net interest costs|(488)|(878)| |Experience gain arising on the plan liabilities|301|(207)| |Effects of changes in the demographic and finance assumptions underlying the present value of|1,332|2,553| |the plan liabilities - gain/ (loss)| |Effect of the asset ceiling|(1,145)|(1,062)| |-|406|

----- End of picture text -----

Defined benefit cost recognised in other recognised gains

The experience gain arising on the plan liabilities is the effect of using the most receontly completed scheme valuation (as at March 2022). The impact of using this valuation was to introduce gains and losses that arose between 31 March 2019 and 31 March 2022.

----- Start of picture text -----
||||| |---|---|---|---| |Assumptions|2023|2022|2021| |% per annum|% per annum|% per annum| |Discount rate|5.20|3.50|1.60| |Inflation (RPI)|3.40|3.40|3.50| |Allowance for revaluation of deferred pensions of RPI or 5% p.a. if less|3.40|3.40|3.50| |Allowance for pensions in payment increases|3.40|3.40|3.50| |Allowance for commutation of pension for cash at retirement|None|None|None|

----- End of picture text -----

Life expectancy at age 65

----- Start of picture text -----
|||| |---|---|---| |The mortality assumptions adopted at 31 July 2023 imply the following life expectancies|yrs| |2023|2022| |Male aged 65|20.9|20.6| |Female aged 65|22.7|22.6| |Male aged 45|22.1|21.9| |Female aged 45|24.2|24.1|

----- End of picture text -----

Sensitivity analysis

The following changes on the above assumptions would have this effect on the present value of defined obligations:

----- Start of picture text -----
||||| |---|---|---|---| |2023|2022| |£|£| |Discount rate - 50 basis points|5,047|6,998| |Price inflation rate + 25 basis points|4,772|6,485| |Post retirement mortality assumption- 1 year age rating|4,881|6,598| |8|Intangible fixed assets|Total|Total| |2023|2022| |£000|£000| |Cost| |At 1 August 2022|132| |Additions|89|132| |At 31 July 23|221|132| |Amortisation| |At 1 August 2022|44| |Provided during the year|74|44| |At 31 July 2023|118|44| |Net book value|103|88|

----- End of picture text -----

49

ROYAL ACADEMY OF DRAMATIC ART

Notes to the accounts for the year ended 31 July 2023

9 Tangible fixed assets

Group Cost At August 2022 Additions Disposals At 31 July 2023 Depreciation At August 2022 Charge for the year On disposals At 31 July 2023 Net book value At July 2023 At July 2022 Academy Cost At August 2022 Additions Disposals At 31 July 2023 Depreciation At August 2022 Charge for the year On disposals At 31 July 2023 Net book value At July 2023 At July 2022 Total of assets held under finance leases The net book value of plant, machiner and e he r

Land and Buildings Plant and Machinery Total 2023 £000 2023 £000 2022 £000 43,563 5,500 49,063 - 247 247 (2,173) (646) (2,819) 41,390 5,101 46,491 12,685 5,052 17,737 480 236 716 (2,173) (642) (2,815) 10,992 4,646 15,638 30,398 455 30,853 30,878 448 31,326 Buildings Machinery Total 2023 2023 2022 43,563 5,448 49,011 - 227 227 (2,173) (605) (2,778) 41,390 5,070 46,460 12,685 5,006 17,691 480 227 707 (2,173) (602) (2,775) 10,992 4,631 15,623 30,398 439 30,837 30,878 442 31,320 2023 £000 2022 £000 2,496 2,642 de v

50

ROYAL ACADEMY OF DRAMATIC ART

Notes to the accounts for the year ended 31 July 2023

10 Investments held as fixed assets

note Quoted investments Investment in subsidiary 11 Carrying value of listed investments At August 2022 Additions - income reinvested Revaluations at 31 July 2023 Disposals and management fees At 31 July 2023 Analysis between fair and historical cost Investments as above held at fair value Historic cost of the above investments	2023 £000 2022 £000 5,497 6,473 5,497 6,473 Group	2023 £000 2022 £000 5,497 6,473 2 2 5,499 6,475 2023 £000 2022 £000 6,473 8,589 107 105 (5) 46 (1,078) (2,267) 5,497 6,473 5,497 6,473 2,823 3,250 Academy Group and Academy

The market value at 31 July 2023 includes cash and securities which are invested in three funds managed by McInroy and Wood Ltd, Ruffer LLP and Troy Asset Management Ltd.

All investments are held in one of the 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	2023 £000 2022 £000 1,517 1,851 3,980 4,622 5,497 6,473 2023 £000 2022 £000 1,446 2,215 - 776 3,269 2,749 223 112 559 621 5,497 6,473

51

ROYAL ACADEMY OF DRAMATIC ART

Notes to the accounts for the year ended 31 July 2023

11 Subsidiary companies

The name of the subsidiary undertaking is RADA in Business Ltd (RADA Business) which is registered in England and 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.

RADA Business donates its taxable profits to RADA every year.

Investment in RADA Business at 31 July 2022 and 2023 A summary of the audited financial statements of the subsidiary is: Assets and funds Aggregate amount of assets Aggregate amount of liabilities Aggregate amount of funds Profit and loss Turnover net of VAT Expenses net of VAT Net profit for the year before tax Donation to RADA by way of Gift Aid Surplus/ (deficit) for the year after Gift Aid	2023 £000 2022 £000 2 2 2023 £000 2022 £000 2,724 1,841 (2,583) (1,694) 141 147 7,694 6,087 (6,532) (5,271) 1,162 816 (1,168) (686) (6) 130

The net profit for the company is stated after including intergroup expenditure of £443k (2022 £416k) which has been eliminated on consolidation.

Amounts owing from the subsidiary are shown in the note relating to debtors.

12 Debtors

Trade debtors Prepayments and accrued income Other debtors Due from group undertaking	2023 £000 2022 £000 1,221 1,449 318 1,889 201 242 1,740 3,580 Group	2023 £000 2022 £000 146 136 270 1,890 68 26 1,119 128 1,603 2,180 Academy

At the balance sheet date, 31 July 2023, RADA had been notified of a legacy with an estimated value of £250k which did not meet the criteria for recognition within income at at 31 July 2023.

52

ROYAL ACADEMY OF DRAMATIC ART

Notes to the accounts for the year ended 31 July 2023

13 Creditors: amounts falling due within one year

Note Trade creditors Accruals - RADA Accruals - RADA Business Deferred income - RADA 14 Deferred income - RADA Business 14 PAYE, NIC, VAT and other taxes Finance lease (see note 15) Other creditors	Group 2023 £000 2022 £000 508 478 426 326 436 549 727 710 487 615 462 349 123 110 100 233 3,269 3,370	Academy 2023 £000 2022 £000 308 390 426 326 - 727 710 - 148 117 123 110 100 176 1,832 1,829

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.

14 Deferred income reconciliation Brought forward at 1 August Released from previous period Deferred in this period Balance at 31 July 23 15 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	2023 £000 2022 £000 1,325 883 (1,290) (829) 1,179 1,271 1,214 1,325 2023 £000 2022 £000 5,107 5,230 139 123 521 468 4,447 4,639 5,107 5,230 Group Group	2023 £000 2022 £000 710 326 (745) (288) 762 672 727 710 2023 £000 2022 £000 5,107 5,230 139 123 521 468 4,447 4,639 5,107 5,230 Academy Academy

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 in the lease is 5%.

16 Provision for dilapidations

Provision for dilapidations on Scala Street Lease

2023	2022
£000	£000
25	25

53

ROYAL ACADEMY OF DRAMATIC ART

Notes to the accounts for the year ended 31 July 2023

17 Net debt reconciliation

Cash Cash equivalents Finance lease obligations (< 1 year) Finance lease obligations (> 1 year) Cash Cash equivalents Finance lease obligations (< 1 year) Finance lease obligations (> 1 year)	At 1 Aug 2022 Cashflows Non cash movements At 31 July 2023 £000 £000 £000 £000 1,786 2,232 4,018 1,786 2,232 - 4,018 (110) (13) (123) (5,230) 123 (5,107) (3,554) 2,232 110 (1,212) At 1 Aug 2021 Cashflows Non cash movements At 31 July 2022 £000 £000 £000 £000 760 1,026 1,786 760 1,026 - 1,786 (110) (110) (5,277) 47 (5,230) (4,517) 1,026 (63) (3,554)

18 Contingent liabilities

a) RADA received during the year ended 31 Mar 1990 a sum of £500k being a contribution towards the purchase 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.

19 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 telecomms masts. The future minimum lease receipts arising from non cancellable operating leases are shown below. The amounts due to the Academy fall due as follows:

Within one year In the second to fifth years inclusive	2023 2022 35 35 50 85 85 120 Group and Academy

Lessee commitments

RADA has rented office premises in Scala Street, London W1 which it in turn sublets to RADA Business. The lease payments to the landlord are recognised on a straight line basis over the remainder of the lease term to February 2028 following the first break clause in February 2023.

Within one year In the second to fifth years inclusive	2023 £000 2022 £000 212 87 758 - 970 87 Group and Academy

54

ROYAL ACADEMY OF DRAMATIC ART

Notes to the accounts for the year ended 31 July 2023

20 Related party transactions

Donations totalling £10k were received from Council members or organisations connected with Council members (2022 £24k). No trustee claimed expenses from the Academy during the year (2022: nil).

Rishi Madiani, a member of Council, is also the councillor for the Bloomsbury ward of the London Borought of Camden, where RADA is situated. During the year, the Academy paid £25k in rent and £133k in non-domestic rates to the borough but also received a £205k rates rebate covering the years from 2017/18 to 2022/23. This rebate arose in the normal course of business. Rishi Madiani was also employed during the year by NatWest Bank who are our main bankers.

Council members during the year, Zac Barratt and Ros Haigh are Trustees of the RADA 1978 Retirement Fund, a defined benefit pension scheme. Details of RADA's transactions with the scheme are shown in note 7.

Council members received no remuneration in respect of their service as governors. During the year, 3 members of RADA staff (as well as the Principal- see note 5) served as governors and received remuneration for their teaching or management work totalling £280k (including pension contributions) (2022: £261k).

Transactions with RADA Business are described in notes 11 and 19 and the balance due from RADA Business to RADA is shown in note 12.

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

At 31 July 2023 Intangible assets Tangible fixed assets Fixed asset Investments at valuation Current assets Current liabilities Long term liabilities Provisions for liabilities and charges At 31 July 2022 Intangible assets Tangible fixed assets Fixed asset Investments at valuation Current assets Current liabilities Long term liabilities Provisions for liabilities and charges

Unrestricted funds Designated funds Restricted funds Endowment Funds Total funds £000 £000 £000 £000 £000 - 103 103 - 11,396 19,457 30,853 16 5,481 5,497 3,912 357 1,489 5,758 (3,269) (3,269) (5,107) (5,107) (25) (25) (4,473) 11,499 19,814 6,970 33,810 Unrestricted funds Designated funds Restricted funds Endowment Funds Total funds £000 £000 £000 £000 £000 89 - 89 - 11,409 19,918 31,326 6,473 6,473 4,299 643 423 5,365 (3,370) (3,370) (5,230) (5,230) (25) (25) (4,326) 11,497 20,561 6,896 34,628

55

ROYAL ACADEMY OF DRAMATIC ART

Notes to the accounts for the year ended 31 July 2023

22 Change in total funds over the year

Unrestricted and designated funds Unrestricted- RADA General Fund Unrestricted- RADA Business reserves Sale and leaseback commitments due > 1 yr Designated fixed asset funds Unrestricted and designated funds Unrestricted- RADA General Fund Unrestricted- RADA Business reserves Sale and leaseback commitments due > 1 yr Pension scheme liabilities Designated fixed asset funds

Funds brought fwd from 2022 Income Expenditure Asset purchases and transfers Gains and Losses Funds carried fwd to 2024 £000 £000 £000 £000 £000 £000 856 6,919 (7,015) (135) (7) 618 48 7,694 (7,617) (109) 16 (5,230) 123 (5,107) 11,497 32 (333) 303 11,499 7,171 14,645 (14,965) 182 (7) 7,026 Funds brought fwd from 2021 Income Expenditure Asset purchases and transfers Gains and Losses Funds carried fwd to 2023 £000 £000 £000 £000 £000 £000 2,286 6,176 (7,595) (24) 13 856 17 6,088 (5,912) (145) 48 (5,279) 49 - (5,230) (492) 86 406 - 11,611 - (283) 169 11,497 8,143 12,264 (13,655) - 419 7,171

Designated fixed asset funds

The 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 from unrestricted general funds to the sale and leaseback fund representing the change in creditor during the year.

56

ROYAL ACADEMY OF DRAMATIC ART

Notes to the accounts for the year ended 31 July 2023

22 Change in total funds over the year (contd.)

----- Start of picture text -----
Restricted funds: Funds Income Expenditure Asset Gains and Funds carried
brought fwd purchases Losses fwd to 2024
from 2022 and transfers
see note 2 see note 3 see note 8 see notes 7&9
£000 £000 £000 £000 £000 £000
Restricted fixed asset funds 19,918 (461) - 19,457
Capital Campaign Fund 198 - (50) - 148
Shaw Fund 32 - - 32
Access and Participation 90 13 (103) - -
Scholarship funds 282 286 (523) 104 - 149
(Re)Framing the future 13 - (13) - -
Sundry other funds 28 - - 28
20,561 299 (1,100) 54 - 19,814
Restricted funds: Funds Income Expenditure Asset Gains and Funds carried
brought fwd purchases Losses fwd to 2023
from 2021 and transfers
see note 2 see note 3 see note 8 see notes 7&9
£000 £000 £000 £000 £000 £000
Restricted fixed asset funds 20,388 - (493) 23 - 19,918
Capital Campaign Fund 198 - - - 198
Shaw Fund 32 - - - 32
Access and Participation 25 65 - - 90
Furlough 17 (17) -
Scholarship funds 192 478 (532) 144 - 282
Teaching Capital 12 (12) -
Utah University 15 (15)
(Re)Framing the future 13 - - - 13
Digital equipment (virtual Conservatoire) 11 (11)
Sundry other funds 26 2 - 28
20,874 600 (1,057) 144 - 20,561
----- End of picture text -----

Retricted 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 investment in the Chenies St project.

The Attenborough Campaign Fund was established to raise money to upgrade the theatre and buildings in 16-18 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 Access and Participation fund represents monies donated to encourage progression to higher education bu students from diverse social backgrounds.

The Scholarship Funds represent funds donated for student bursaries, maintenance grants and other support costs. The (Re)Framing the Future fund is donations received for work on decolonising the curriculum.

57

ROYAL ACADEMY OF DRAMATIC ART

Notes to the accounts for the year ended 31 July 2023

22 Change in total funds over the year (contd.)

----- Start of picture text -----
Endowment funds: Funds Income Expenditure Asset Gains and Funds carried
brought fwd purchases Losses fwd to 2024
from 2022 and transfers
see note 2 see note 3 see note 8 see notes 7&9
£000 £000 £000 £000 £000 £000
Category A 4,484 320 (43) (104) 1 4,658
Category B 2,412 43 (12) (132) 1 2,312
Total endowment funds 6,896 363 (55) (236) 2 6,970
Endowment funds: Funds Income Expenditure Asset Gains and Funds carried
brought fwd purchases Losses fwd to 2023
from 2021 and transfers
see note 2 see note 3 see note 8 see notes 7&9
£000 £000 £000 £000 £000 £000
Category A 4,448 167 (11) (144) 24 4,484
Category B 1,762 645 (4) - 9 2,412
Total endowment funds 6,210 812 (15) (144) 33 6,896
----- End of picture text -----

Endowment funds

The original monies donated to endowment funds have been preserved as capital. An assessment of the income from these

funds is made as required and investments are sold where required to provide scholarships 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.

Following the year end, RADA has exercised its power at section 284A of the Charities Act 2011 to borrow £802k from the Category A funds to support medium term liquidity.

58

RADA annual report and accounts 2022-23 (for signatures)

Final Audit Report

2023-12-20

Created: 2023-12-18 By: Cordelia Longworth ([e-mail]) Status: Signed Transaction ID: CBJCHBCAABAA_m4BnInejomEFHMuW0DL2dYS0RRKpcFe

"RADA annual report and accounts 2022-23 (for signatures)" His tory

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