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2022-07-31-accounts

Annual Report and Financial Statements For the year ended 31 July 2022

Contents

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Annual Report and Financial Statements
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01

Report of the Chair of the Board of Trustees

We are pleased to present the Annual Report and Financial Statements for the Royal Academy of Dance for the year to 31 July 2022.

While the impact of the global Covid-19 pandemic on the RAD’s operations eased during the period under review, it still significantly hindered the operations of our global family as they sought to return to pre-pandemic levels of activity. To mitigate the difficulties that we faced, the RAD continued to offer hybrid and online events, workshops and conferences across the world. An example was The Fonteyn competition – our flagship event – which we had been forced to cancel in 2020 but was held as a fully virtual event in 2021. It was remarkably successful, and a testament to the adaptability of the contestants and organisers, but we are delighted that the RAD will be holding a fully in-person Fonteyn in London in October 2023.

Our first virtual Awards Day, with three simultaneous online ceremonies taking place across several time zones, demonstrated the RAD’s global reach and the benefits that technology can sometimes bring to integrating the organisation. We were delighted that over 300 students graduated from our Faculty of Education programmes despite Covid-19 restrictions.

The RAD across the world has overcome numerous new and frightening challenges through the exceptional hard work, dedication and commitment of its staff and management. I would like to express, on behalf of my fellow trustees, our sincere thanks and gratitude to them all for their continued resilience, enthusiasm, and loyalty.

I would also like to thank all our members, friends, supporters, sponsors, and donors for their help and support. It means so much to all of us that they are prepared to dedicate their time and energy to enable us to fulfil our mission, to teach the world to dance. The donations from foundations and individuals were pivotal in enabling us to move to a facility that will provide wonderful opportunities for a far wider audience to enjoy the pleasures of dance.

Our move to the RAD’s new global headquarters in March was marked by a series of high-profile opening events. The building was formally opened by HRH The Duchess of Cornwall and there were well-attended gatherings for our members and to introduce the RAD to our friends and neighbours in Wandsworth, an event attended by the mayor. We aim to make York Road the centre of dance in the UK and the hub of its global activities.

The death in September of our patron, Her Majesty Queen Elizabeth II, was a loss felt by everyone around the world. The Royal Academy of Dance was fortunate to have enjoyed her patronage since 1953.

Upon Luke Rittner’s retirement at the end of April after 22 years at the RAD, we were delighted to welcome Tim Arthur as our new chief executive. His report follows this.

In a year of change, I am sad that this will be my final annual report as chair of the RAD. It has been an honour, a privilege, and a joy to be associated with this wonderful institution and the incredible work it does in promoting the importance and benefits of dance. I am so grateful to all our staff, members, donors, supporters, and friends for their hard work, support and kindness over the years. Without them, this great academy would not exist. I wish the RAD and all those associated with it every success in the future, and I will follow its progress with keen interest.

Guy Perricone Chair

Royal Academy of Dance, year ended 31 July 2022

02

Chief Executive’s report

As we look back on the financial year 2021-22, we remain determined to ensure the smooth running of the business, and to support our staff, members, and students through the continuing effects of Covid-19 and the increasingly troubled economic scenario in which we are now operating. The highlights of the year in review, outlined under our strategic objectives later in this report, show that we have continued to be successful in achieving this due to the tremendous dedication and commitment of our staff around the world, and the loyalty of our membership.

In March, we moved into our new global headquarters on the back of a monumental fundraising effort. We are indebted to the generosity of donors, foundations, and sponsors for making this possible, as well as the vision and enthusiasm of our Capital Campaign Committee led by Dame Monica Mason.

The new building has already come to life. Our community-engagement strategy is paying off as it begins to be seen as an arts destination. We are continuing to work on building partnerships with our local and international communities while expanding the breadth of our activities as a world leader in dance education, engaging with increasingly diverse audiences.

We have continued to prioritise support for our members, introducing new resources on safeguarding and wellbeing as well as providing flexibility around payment and replenishing our hardship scheme for teachers. Along with delivering online member events, this year has also seen the development of a new online Register of Teachers. This register makes it easier for teachers to show their RAD qualifications while also offering assurance to the public that they can be confident of finding the best teachers.

Despite the many obstacles caused by the pandemic, our global network exceeded its budgets by delivering over 190,000 examinations, a testament to the adaptability and hard work of our colleagues around the world. Necessity created an increased need for filmed submissions, and we have been developing processes over the last two years to deliver filmed exams to provide greater flexibility to students not able to travel.

I must acknowledge once again our dedicated staff worldwide for their continuing hard work and willingness to adapt in a post-pandemic environment that has forced so many changes on them and the organisation. They continue to deliver every day to the highest standards, and they ensure that the RAD maintains its position as a world leader in dance education.

On a personal note, I would like to thank the trustees and colleagues around the world for their warm welcome into the RAD fold. I have loved working with them and look forward to building on the firm foundations that I inherited from Luke.

Tim Arthur Chief Executive

Annual Report and Financial Statements

03

Patron, President and Officers

Patron

The Late Queen Elizabeth II

Vice Patron

HM The Queen Consort

President

Dame Darcey Bussell DBE

Trustees

Guy Perricone (Chair) Amy Giancarlo BA (Hons) RBS DDT LRAD ARAD RAD RTS Andrew McIntee BA (Hons) Bus Econ Chi Cao PDTD David Nixon OBE Deborah Cornelius MA (Cantab) Esther Chesterman LLM LLB Dip Ed Hilary Clark ARAD (dip PDTC) RTS Ida Levine BA Juris Doctor JD Imogen Knight ARAD BA (Hons) DDE, RAD TD, RAD RTS James Cane FCA Joshua Tuifua PDTD (Dist) Matthew Paluch MA, PDTD (Dist) RBS Dip. Penny Parks RAD RTS Professor Peter Flew Rachel Jackson-Weingärtner MA, RAD TDIP RTS, SAC Dip, LISTD Dip Stephen Sacks Vikki Allport RAD RTS T.DIP (Dist)

Executive Board

Chief Executive

Chief Operating Officer Artistic Director Director of Education Director of Development

Director of Marketing and Communications Director of Finance

Director of Examinations

Tim Arthur (appointed March 2022) Ash Sharma ACCA (appointed June 2022) Gerard Charles Dr Michelle Groves EdD MA BSc (Hons) BPhil (Hons) Katy Shaw MCIOF (appointed Nov 2022) Melanie Murphy Dip IPR MICPR Renu Randhawa ACA (appointed March 2022) James Stockdale MIoD

Vice Presidents

David Bintley CBE Li Cunxin AO Dame Beryl Grey (deceased Dec 2022) Dame Monica Mason DBE David McAllister OAM Wayne Sleep OBE

Advisory Council

Joy W Brown Barbara Fewster OBE FISTD Lady Porter Sir Roy Strong CH DLitt PhD FRSA FRSL

Royal Academy of Dance, year ended 31 July 2022

04

Report of the Trustees

The Trustees of the Royal Academy of Dance (RAD) present their report and audited financial statements for the year ended 31 July 2022. This contains information to satisfy the requirements of trustees’ reports under the Charities Act 2011, and to comply with current statutory requirements, the RAD’s Charter, the Statement of Recommended Practice for Accounting and Reporting by Charities (2019), and Financial Reporting Standard FRS 102.

This report contains information about the group and charity. In the context of these financial statements, the group accounts include the audited accounts of the charity and its subsidiaries, and the charity accounts include the audited accounts of the RAD in the United Kingdom and its branches for the year to 31 July 2022. The entities comprising the group and the charity are shown on page 12.

Our registered and head office is 188 York Road, London, SW11 3JZ. The RAD has 29 international offices which manage branches, representative offices, and subsidiary companies, in which the RAD holds, either in trust or outright, 100 per cent of the issued share capital. The RAD also has effective control over an association incorporated under Section 21 of the Republic of South Africa’s Companies Act which owns the freehold property in South Africa; Yayasan Royal Academy of Dance Indonesia, a non-profit foundation, based in Indonesia; and RAD Dancing (Thailand) Co Ltd where it holds a minority shareholding.

The RAD is recognised to award regulated qualifications in England, Wales and Northern Ireland and are required, through our board of trustees, to issue an annual Statement of Compliance to the Office of Qualifications and Examinations Regulation (Ofqual), Qualifications Wales and the Council for the Curriculum, Examinations and Assessment (CCEA). We are also recognised as an approved awarding body in Scotland by SQA Accreditation, part of the Scottish Qualifications Authority.

Through our Faculty of Education, the RAD is registered with the Office for Students (OfS) as a provider of higher education and is designated by the Office for Standards in Education, Children’s Services and Skills (Ofsted) as an ‘outstanding provider of initial teacher training’.

The RAD is required to report any safeguarding (including Prevent) incidents to the Charity Commission and to the OfS, Ofqual, Qualifications Wales and CCEA, where there is an event which could have an adverse effect in leading to a loss of standards, integrity, or public confidence in qualifications, and to Ofsted according to the circumstances. We follow the Charity Governance Code.

Principal activities

At the RAD, we provide dance training, dance-teacher education, and dance-assessment services to students and teachers. We are also:

Our services can be seen at www.royalacademyofdance.org and through local websites internationally.

Annual Report and Financial Statements

05

Public benefit

The RAD is a charity registered in England and Wales. Our trustees are required to ensure that they carry out the charity’s aims for the public benefit whenever the exercise of any powers or duties may be relevant. As such, the trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the aims and objectives of the RAD and in planning future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives which are set.

The charitable objectives as set out in our charter are to:

  1. elevate and advance the art of dance by promoting the correct tuition of dance in its highest forms, and

  2. advance education in the art of dance, by:

  3. providing facilities for dance, dance education and training,

  4. setting up and maintaining programmes of study for the education and training of dancers, teachers and notators of dance (such programmes to include, but not be limited to, the study of Benesh Movement Notation),

  5. setting and conducting exams in dance and the teaching of dance,

  6. educating, training, assessing, registering, licensing and chartering teachers of dance who meet standards determined by the board from time to time, and

  7. promoting the teaching of dance.

The trustees have reviewed these aims and consider that our activities meet the main principles of public benefit: that they are identifiable and are related to our aims of the RAD, that the public are the beneficiaries, and that there is no significant exclusion as to who can benefit.

Mission and vision

Our mission is to inspire the world to dance.

Our vision is to be:

Royal Academy of Dance, year ended 31 July 2022

06

57 entries from 23 countries for our Members’ photo competition

341 students graduated across nine FoE programmes

45.1 million reached by The Fonteyn coverage

600+

local people attended our house warming

96.2% retention rate (members)

196,000 exams delivered worldwide

£3.2 m raised by our capital campaign

Photo: Konstantinos Halabalakis submitted by A. Dimopoulos runner up in ‘Monumental Moves’ photo competition.Annual Report and Financial Statements 07

Strategic objectives and achievements

Our strategic plan has three objectives. Two of these (SO1 and SO2) focus on how we operate and ensure financial stability, and the third (SO3) focuses on why we exist – our purpose – and how to use our position as a leading dance, education, and training organisation to attract, retain and support our members and students.

SO1: Review and adapt structures and systems to focus use of people, skills, and resource to maximise impact

Achievements and Performance

Artistic

Exams

Faculty of Education

Royal Academy of Dance, year ended 31 July 2022

08

Continuing Professional Development (CPD)

SO2: To secure capital funding and investment to transform access to dance

Achievements and Performance

Fundraising and Development

SO3: To set teaching and learning standards for dance teachers and students worldwide to enhance the RAD’s global reputation

Achievements and Performance

Membership

Annual Report and Financial Statements

09

Marketing and Communications

Library and Archive

Royal Academy of Dance, year ended 31 July 2022

10

Exams

Learning and Participation

A Level

GCSE

Dance School

CPD

Annual Report and Financial Statements

11

RAD corporate structure

All entities below form the group (the RAD)

RAD

Subsidiary companies

The results of the subsidiary companies are consolidated with the results of the Charity (Branch offices and UK Group) to form the Group.

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RAD Singapore
RAD gGmbH Yayasan RAD RAD Srl
Pte Ltd
Germany Indonesia Italy
Singapore
RAD Dancing
RAD de Mexico AC RAD s21 Company RAD Enterprises Ltd
(Malaysia)
Mexico South Africa United Kingdom
Sdn Bhd
RAD SL RAD Dancing
RAD Brasil Ltda
Spain, Andorra (Thailand) Co Ltd
South America
& Gibraltar Thailand
Charity
RAD
Branch offices
Australia Canada Israel Japan
Southern Africa
New Zealand Portugal United States
& Mauritius
Representative offices
Caribbean China Cyprus Greece
Hong Kong Ireland Malta Taiwan
Scandinavia South Asia South Korea
The results of the representative offices are included in the results of the UK
to form the UK Group.
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Royal Academy of Dance, year ended 31 July 2022

12

Corporate Governance

The group relies on a robust governance framework to support the organisation. Responsibility for good governance lies with the trustees, who are accountable to the members. The trustees oversee the RAD’s worldwide operations through a trustee board and ten separate subcommittees.

President and Vice Presidents

We currently have seven elected vice presidents. These may not be Full Members of the RAD at the time of election but are deemed to become Full Members following election. Candidates for the office of president and up to nine vice presidents can be nominated by Full Members or be recommended by the board of trustees and are elected by members at the Annual General Meeting (AGM). Since the revision of the charter in 2008, the president and vice presidents elected since that date can only hold office for a maximum of two terms of five years, in accordance with clause 52.7 of the bye-laws.

Advisory Council

The advisory council consists of the president, vice presidents, and any other persons appointed by the board to provide advice. The advisory council did not meet during the year.

International Advisers

The trustees may appoint up to five international advisers whose ordinary residence is not in the UK and who may attend meetings of the board of trustees in an advisory capacity. There are no current appointments.

The Board of Trustees

The board comprises up to a maximum of twenty members, of whom ten are Full Members of the RAD (List A) and ten, including the chair, who may or may not be Full Members, who have been recommended by the board as persons likely to bring skills or experience in areas other than dance or education (List B).

Candidates for the office of trustee can be nominated by Full Members or recommended by the board of trustees and are elected by members at the AGM. Trustees are elected to hold office for a term of three years and may be reappointed for two further consecutive terms in accordance with clauses 33-38 of the bye-laws.

Individuals may be co-opted by the trustees to fill vacancies arising during the year.

The board’s role and responsibilities are set out in formal Terms of Reference and Standing Orders.

There are currently eighteen elected trustees on the board.

List A Trustees (Dance)

Hilary Clark ARAD (dip PDTC) RTS Imogen Knight ARAD BA (Hons) DDE, RAD TD, RAD RTS Penny Parks RAD RTS Amy Giancarlo BA (Hons) RBS DDT LRAD ARAD RAD RTS Vikki Allport RAD RTS T.DIP (Dist) Joshua Tuifua PDTD (Dist) Matthew Paluch MA, PDTD (Dist) RBS Dip. Rachel Jackson-Weingärtner MA, RAD TDIP RTS, SAC Dip, LISTD Dip

List B Trustees

Guy Perricone (Chair) James Cane FCA Professor Peter Flew Ida Levine BA Juris Doctor JD Andrew McIntee BA (Hons) Bus Econ David Nixon OBE Chi Cao PDTD Esther Chesterman LLM LLB Dip Ed Deborah Cornelius MA (Cantab) (appointed May 2022) Stephen Sacks (appointed May 2022)

Annual Report and Financial Statements

13

Resigned May 2022

Kevin O’Hare CBE

Aliceson Robinson MBA

Darren Parish RAD PDT Diploma BMN Diploma RAD RTS and Diploma Arts and Dance NFSH

Meetings

The board schedules at least four meetings a year, plus an annual strategy day. Comprehensive papers, including minutes of previous meetings, are presented to the board.

Constitution

The chair is responsible for the leadership and management of the board.

The chief executive is responsible for the leadership and day-to-day management of the RAD to ensure the delivery of the strategy agreed by the board. The chief executive is supported by seven directors as listed on page 4.

Induction

All trustees are provided with a handbook, and take part in induction sessions with senior staff to familiarise themselves with the work of the RAD.

Related parties

The RAD has entered into a number of transactions with related parties during the year. These are in the form of management charges made to overseas branches and subsidiaries to cover the cost of administration of the group by UK headquarters, fees and expenses paid to seven trustees in their capacity as examiners, tutors or mentors, and rental paid on property used for RAD business. Further detail can be found in note 13 to the financial statements.

Independence

Trustees are required to sign a code of conduct on appointment. Up to one half of the trustees may receive an emolument for services rendered to the RAD, but where the trustee has received payment in the preceding twelve months, may not take part in any debate or vote considering emoluments, whether specific or general, and should not be present at a meeting at which a specific payment to that trustee is discussed or an appointment which involves payment is made.

Trustees are required to disclose any third-party interests annually and to disclose any gifts received. These are disclosed in note 13 on page 46.

Indemnities and insurance

In accordance with Article 6(h) of the RAD’s charter, the RAD takes out indemnity insurance as part of its global policy to indemnify it against loss arising from the neglect or default of its trustees, employees, or agents and to indemnify the trustees and other officers against the consequence of any neglect or default on their part.

Royal Academy of Dance, year ended 31 July 2022

14

Board Subcommittees

The board operates ten subcommittees, created under bye-law 40 of the RAD’s charter. All subcommittees have formal terms of reference and standing orders which are reviewed annually.

All subcommittees have regular scheduled and unscheduled meetings, and papers are made available to all members and those in attendance.

Finance and Audit Subcommittee

The Finance and Audit Subcommittee’s key function is to support the board in fulfilling its responsibilities in reviewing the effectiveness of financial reporting, internal controls, and risk management. In addition, the subcommittee considers the statutory accounts and meets annually with the external auditors to receive and discuss their report on the annual audit.

As part of this role the subcommittee provides advice to the board on whether these financial statements are fair, balanced, and understandable, and provides information for members to assess the RAD’s performance.

The Finance Subcommittee also advises the board of trustees on all financial matters and considers the management and financial accounts, budgets, and financial resources of the group together with the strategic plan prepared on a five-year rolling basis with annual revisions. The subcommittee also assesses the risks to which the RAD is exposed, and considers any other matters of a legal, statutory, or financial nature brought to its attention.

When considering the annual budgets, it also determines the general salary policy to apply throughout the group. It has four scheduled meetings a year.

Trustee members

James Cane (Chair) Ida Levine Guy Perricone (ex officio) Amy Giancarlo

Co-opted members

Michelle McGrath Sandra McAlister Catherine Quinn BA (Hons), MA, MBA

Director

Director of Finance

Nominations and Remuneration Subcommittee

The Nominations and Remuneration Subcommittee ensures that there is a formal and appropriate procedure for the appointment of key trustees and management. It also considers the remuneration of key management, ensuring it is consistent with the competitive position of the salary for similar positions in the sector and within the RAD, considering their qualifications, experience, roles, and responsibilities. It also considers the recipients for the Queen Elizabeth II Coronation Award, Fellowships of the Royal Academy of Dance, and President’s Awards.

Membership is drawn from the chairs of the respective subcommittees:

Members

Members
Guy Perricone (Chair) Board of Trustees
James Cane Finance and Audit Subcommittee
Deborah Cornelius Board of Directors of RAD Enterprises Ltd
Peter Flew Education Subcommittee
Penny Parks Regional Subcommittee
Ida Levine Fundraising and Development Subcommittee
Steven Sacks Global Membership and Marketing Subcommittee
Imogen Knight Artistic Subcommittee
Esther Chesterman Examinations and Regulatory Subcommittee
Andrew McIntee New Headquarters Subcommittee

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15

Membership of subcommittees is made up of trustees and co-opted members recruited for their skills and experience. Each subcommittee has a chair who is a trustee and at least one director in attendance with the relevant specialism. All members of the executive board may attend these subcommittees. The chair of the board of trustees is an ex-officio member of each subcommittee.

Examinations and Regulatory Subcommittee

The Examinations and Regulatory Subcommittee advises and supports the director of examinations (and other directors) in overseeing the regulatory aspects that governs the work and policies of the examinations board and the RAD. The subcommittee seeks to ensure that our examination policies and standards are maintained and enhanced; that the examinations board is fully accountable; that it complies with the requirements of the external regulators (including annual submissions to the regulators); maintains the highest standards of efficiency and quality assurance in its policies and procedures; and that programmes remain practically and financially viable.

Trustee Members:

Esther Chesterman (chair)

Co-opted Members:

Tim Arnold Louise Norman Brenda Soar Michael Smith Edith Devoy Barbara Amponsah-abedi (appointed June 2022)

Directors:

Director of Examinations

Artistic Subcommittee

The Artistic Subcommittee is a source of advice, support, and debate for the artistic director on advances and changes in the dance, arts and education sectors that may impact on the RAD. It supports the artistic director in ensuring that the RAD’s Artistic ideals and standards; and the aims of the RAD’s Royal Charter and Strategic Plan; are articulated, visible and upheld in all of our activities (including student training, community provision, competitions, syllabus, member teacher and independent contractor support, and outreach programming); and that our artistic initiatives are artistically, practically, and financially viable. The subcommittee may form limited time working groups with members outside of the subcommittee. It may also receive items for review delegated from the board of trustees and may report recommended actions for approval.

Trustee members

Imogen Knight (Chair) Chi Cao Hilary Clark Penny Parks David Nixon Vikki Allport (appointed September 2022)

Co-opted members

Amanda Eyles Wade Lewin Vidya Patel Sidwell Roman

Kylie Ann Aliferis (appointed September 2022) Ana Maria Campos (appointed September 2022) Anuschka Roes (appointed September 2022) David Steele (appointed September 2022) Bawren Tavasiva (resigned February 2022) Rebecca Taylor (resigned February 2022)

Directors

Artistic Director

Royal Academy of Dance, year ended 31 July 2022

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Education Subcommittee

The Education Subcommittee advises and supports the director of education on advances and changes in education that may have an impact on the work and policies of the Faculty of Education and the RAD. It ensures that all programmes of study are fully accountable, developed and maintained to the highest standards; and are financially viable. It also seeks to ensure that, as a provider of higher education, we uphold our public interest governance principles including, but not limited to, the principles of freedom of speech and academic freedom. The RAD complies with its duties under Section 29 of the Counter-Terrorism and Security Act 2015 (Prevent Duty).

Trustee members

Professor Peter Flew (Chair) Hilary Clark Amy Giancarlo Rachel Jackson-Weingärtner

Student representatives

Kathleen Ansell – MAE (Student rep 2021-22) Rachel Webb – DDTS/Yr1 (Student rep 2021-22)

Co-opted members

Dr Ann Chapell (appointed March 2022) Maria Clutterbuck (University of Bath representative) Dr Joanne Cliffe PhD MSc BEd (Hons) Professor Tina Chen FISTD MA Dip RBS TTC ARAD Judith Hemery AB (Hons) (resigned September 2022) Fiona Sheehan MA BA (Hons) Paula Scales MTD BA (Hons) PGCE RTS Professor (Emeritus) Prue Huddleston Lynne Reucroft-Croome (resigned February 2022) Calvin Robinson Shelly Yacopetti Dr Janet Rose

Director

Director of Education

Global Membership and Marketing Subcommittee

The Global Membership and Marketing Subcommittee advises and supports the director of marketing and communications on matters relevant to the marketing and promotion of our projects, events, and services. It also advises and supports the director and their teams in promoting the skills, knowledge, and expertise of its members, and providing support services and benefits for its members throughout their careers. The subcommittee also seeks to ensure that, as a membership organisation, we uphold the aims and objectives of the charter and its bye-laws in an open and transparent way, and that it is fair in all its dealings with members of the RAD and the public.

Trustee members

Stephen Sacks (Chair) (appointed May 2022) Imogen Knight (Vice Chair) Joshua Tuifua Rachel Jackson- Weingärtner

Co-opted members

Akua Acheampong (appointed September 2022) Carol Marlow Grace Buskell (appointed June 2022) Jane Karczewski (appointed September 2022) Lloyd Stringer Shelley Isaac-Clarke Tch Dip RTS (resigned June 2022) Vikki Allport RAD RTS T.DIP (Dist) (resigned June 2022)

Annual Report and Financial Statements

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Director

Director of Marketing and Communications

Regional Subcommittee

The Regional Subcommittee facilitates feedback from the regional ambassadors of the UK and Ireland (all teaching Members of the RAD) to the executive board on all regional matters. Additionally, the regional ambassadors receive updates from the executive board on projects and initiatives to share with their regional membership, enhancing member engagement. The subcommittee ensures that we are fully accountable to our members in the UK and Ireland, and maintains the highest standards in all areas of its work. The terms of reference of the subcommittee determine that the incumbent chair is put forward to the board of trustees on initial election as a co-opted trustee and subsequently recommended for election at the AGM.

Chair and Trustee

Penny Parks (South East England)

Co-opted members

Caitríona Brocklebank (Ireland) Caroline Peters (Midlands & East of England) Dawn Edgar-Ulivi (Scotland) Lisa McCourt (Northern Region) Shelley Isaac-Clarke (South West, Wales & Channel Islands)

Director

Director of Examinations

New Headquarters Project Subcommittee

The New Headquarters Project Subcommittee oversees all relevant aspects of the construction, design and fit-out of the RAD’s new headquarters on York Road, with the move taking place from February 2022. The subcommittee upholds the aims and objectives laid down in the RAD’s Royal Charter and bye-laws.

Trustee members

Andrew McIntee (chair) Guy Perricone Ida Levine James Cane

Co-opted members

Russell Middleton Tina Wolder

Director

Chief Executive

The subcommittee is made up of trustees and experts providing wider experience in the fields of construction, design, and property management, and is attended by members of the executive board as required. The subcommittee meets as required.

Royal Academy of Dance, year ended 31 July 2022

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Fundraising and Development Subcommittee

The Fundraising and Development Subcommittee advises on fundraising efforts that support the charitable purposes of the RAD, such as social benefits to the wider community. It also advises and supports the director of development and fundraising on matters relating to the development of fundable programmes and fundraising strategy.

Trustee members

Ida Levine (Chair) Guy Perricone James Cane

Co-opted members

David Banks Phil Dolling Joanne Muller Christopher Nourse Jane Karczewski Tristan Davies Georgina Robbins Michael Cole-Fonteyn (appointed September 2022)

Director

Director of Development and Fundraising

Membership comprises trustees and members co-opted from the wider arts, business, and philanthropy sectors. The subcommittee meets four times a year.

Development and Fundraising

The Development Department follows the rules of the Fundraising Regulator’s Code of Fundraising Practice, the Chartered Institute of Fundraising guidance, and the Charities Commission guidance on Charitable Law, including fundraising.

The objectives of the department include raising funds for the organisation and its charitable purposes through individual gifts, trusts and foundations grants, legacies, corporate sponsorship and support and the public sector.

Research and vetting of potential supporters are key parts of fundraising, and the processing and storing of biographical information is necessary. All staff are GDPR trained, and we follow a strict procedure for storing and maintaining such data. All data is stored and protected, with limited access to details allowed within the wider team. Briefing of the chief executive and trustees is also strictly controlled by the team.

We develop strong personal relationships with our funders and listen to their preferences and requirements. The department seeks to encourage donations and does not engage in pressurising potential donors. For trusts and foundations, there are strict guidelines for applying to and reporting on grants. Personal correspondence, relationship management and donor engagement help us to build trust with our supporters. We make every effort to ensure that our fundraising does not intrude on peoples’ privacy, that it is not unreasonably persistent, and that it does not place pressure on anyone to donate.

We consider ethical impacts of our fundraising and seek to ensure that the RAD does not accept gifts or donations from organisations or individuals where to do so would represent a conflict of interest, a reputational risk, or would impact adversely on our ability to fulfil our mission.

We do not engage external fundraisers other than consultants who are vetted, selected, and contracted to deliver specific strategies, following due diligence and conflict-of-interest guidelines. We do not engage in face-to-face solicitation through third parties.

The development team consists of seven people - three being members of the Chartered Institute of Fundraising. The director of development reports directly to the chief executive and takes advice from the Fundraising and Development Committee and the trustees.

There have been no fundraising complaints to date, but any arising will be handled swiftly and interrogated thoroughly with reference to the chief executive. We will also respond appropriately to all Freedom of Information requests from individuals.

Annual Report and Financial Statements

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Board of Royal Academy of Dance Enterprises Ltd (RADE) Enterprises Subcommittee

The board of RADE also acts as the Enterprises Subcommittee of the RAD. Its members are made up of directors of the company and trustees.

RADE is a separately constituted private limited company owned by the RAD. It is the primary publishing and distribution arm for the RAD and its examination board. It sells examination syllabi in various media including print, audio-visual and apps, as well as recommended uniform wear, teaching resources, dance-related products, and gift items. Its products are sold and distributed through its website, mail order, printed catalogues, book distributors, RAD branches, and the RAD itself.

The Enterprises Subcommittee considers the management and financial accounts, budgets, and financial resources of the RADE in the context of its relationship to the group. The subcommittee also assesses the risks to which the company is exposed, and considers any other matters of a legal, statutory, or financial nature brought to its attention.

Company Directors

Tim Arthur (appointed April 2022)

Ash Sharma (appointed June 2022)

Luke Rittner (resigned April 2022)

Ian Pogue (resigned January 2022)

Sue Bacchus

Trustee members

Guy Perricone

Deborah Cornelius (Chair) (appointed May 2022)

Co-opted members

Mark Richardson

The board and subcommittee discharge these responsibilities by meeting three times a year and advises the Finance and Audit Subcommittee and the RAD’s board of trustees on all matters pertaining to RADE.

Royal Academy of Dance, year ended 31 July 2022

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Acknowledgements

We would like to recognise the significant work undertaken by the Capital Campaign Committee led by Dame Monica Mason. Our thanks also go to our President, Dame Darcey Bussell, for her extraordinary commitment to us through such a difficult period for everyone.

We would like to gratefully acknowledge the

invaluable support of the following donors who have supported our Capital Campaign until the end of July 2022:

Aud Jebsen Wolfson Foundation The Linbury Trust Garfield Weston Foundation Lees Charitable Trust Jo and Rafi Manoukian The Deborah Loeb Brice Foundation Donor Advised Fund at CAF Ida Levine The Foyle Foundation The Michael and Nicola Sacher Charitable Trust Simon and Virginia Robertson Sir Simon and Lady Robey Julia Bond, Chris and Imogen Knight The Rudolf Nureyev Foundation The Ethos Foundation Maria Björnson Memorial Fund Torunn and David Banks Charles Glanville and James Hogan Capital Group Dame Monica Mason DBE Sue Butcher Lindsay and Sarah Tomlinson Dame Margot Fonteyn Scholarship Fund Kristina Rogge The Late Julia Farron Philip and Christine Carne Kenneth and Susan Green Christopher and Sarah Smith Lucille Perricone Georgina Robbins Leigh and Lena Collins The Frederick Ashton Foundation South East Regional Committee and South East Members (RAD) Ben and Christine Wrey The Victor and Lilian Hochhauser Foundation Sarah Haslock Colin Campbell Yan Ballet Academy Singapore

Finally, we would like to recognise the following donors who have provided invaluable financial support during the year: The Jack Petchey Foundation, The Headley Trust, The Lynne & Land Foundation, Ida Levine, Harlequin Floors, and Fieldfisher.

Annual Report and Financial Statements

21

Principal risks and uncertainties

Governance, risk and control

The trustees are responsible for the group’s system of internal control and risk management and consider this to be fundamental to the achievement of the RAD’s policies. Some of the key elements of the governance, risk, and control framework in which the RAD operates are set out below. The work of the trustees, subcommittees, management, and staff lies at the heart of its processes.

The board approves strategic plans and annual budgets, reviews quarterly results with comparisons against budget, requests analytical reports as and when necessary and debates topics requiring attention. The relevant subcommittees receive papers and provide assurance to the board. The trustees review the effectiveness of governance, risk, and control through this reporting mechanism as well as management concerns raised by the external auditor through the Finance and Audit Subcommittee. As with any such system, the processes are designed to manage rather than eliminate the risk of failure to achieve objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.

Operational risk management

The chief executive, directors, and heads of departments review the Corporate and Activity Registers and act as the Business Continuity Committee in the event of a disaster.

Exposure to risk

Management continually reviews the risks to which the RAD could be exposed, particularly in terms of governance and operations. Risks are assessed for likelihood and severity of impact. This information is then used to develop a risk-management strategy, including the identification of existing operational controls and any new controls the trustees consider necessary. Several risks and uncertainties have been identified, which are listed below (in no particular order of likelihood of occurrence):

Other awarding organisations, which offer dance examinations across multiple genres at a lower cost, and higher-education bodies that offer places funded by government, compete against the RAD, which focuses on a single genre. Members may no longer wish to retain membership of the RAD or to use its products and services. A change in syllabus can have an adverse effect on the ability of teachers to continue to provide candidates for examination at previous levels due to the challenges of acquiring new knowledge and passing it on to candidates.

In mitigation of these risks, we use internal impact statements to assess risk, and use the full force of social media to publicise, promote and sell our products and services. We regularly consult members to ensure product relevance and help shape future initiatives.

As shown in the past two years, like many international organisations, we are vulnerable to pandemics, natural phenomena, changes in weather patterns, conflict, and terrorism. All of these may impede or prevent activities from taking place, including travel by examination candidates, course attendees, and RAD staff such as examiners and tutors, thereby reducing business and income. We have developed policies and procedures to minimise the loss of income caused by such events, and to ensure the safety of staff and examiners.

In common with most organisations, we are vulnerable to changes in the global economic climate. Our core business depends on the purchasing power of our customers, and we have no control over their financial circumstances – whether member, teacher, examination candidate, higher-education student or dance-class attendee.

It is difficult to forecast the effects of the economic climate on individual customers and therefore we endeavour - through better planning - to react to downturns which might adversely affect our performance. However, the global reach of our operations can mitigate against this risk, as markets experiencing strong economic conditions can support those in a downturn.

The complexity of the group structure could lead to non-compliance with statutory and regulatory requirements, through lack of oversight, knowledge, or training, at both local and group level. Non-compliance can lead to loss of status, recognition, reputation, public confidence, customers, and the imposition of penalties. To mitigate this risk, subject to considerations around cost and benefit, we employ qualified personnel at group and local levels, as well as using external professionals, and work with regulatory or statutory authorities to ensure compliance by obtaining guidance and instruction and implementing these.

Royal Academy of Dance, year ended 31 July 2022

22

Working with young people brings safeguarding responsibilities and for this reason, we have a safeguarding committee with designated safeguarding and senior safeguarding officers. Training needs are identified and addressed, and we work with lawyers or other professionals to ensure policies are fit for purpose. We review our safeguarding policies annually.

The behaviour of members and organisations associated with the RAD could lead to reputational loss. We perform due diligence before entering into partnerships, ensure legally sound contracts are in place, and operate Codes of Conduct and Professional Practice for our teaching members.

We seek to attract and retain high-quality employees and to manage them so that they contribute to the RAD and further their careers. However, as in most organisations, high staff turnover could expose the RAD to lack of continuity and loss of knowledge. We undertake annual performance reviews to ensure that staff are motivated and retained, and the RAD offers a range of benefits. Succession planning is undertaken for senior staff.

It is the RAD’s policy to invest in the right people needed to support our operations. We provide training for all our staff, including external training where relevant to specialisms. We have a performance-review process, linked to its strategic goals and outcomes, which identifies and addresses development needs. We have also developed a series of human resource policies, the most important of which deal with equality, diversity, health and safety, information management and safeguarding. These are designed to guide employees to improve fairness and safety both in the workplace and for our customers, to ensure compliance with legal responsibilities, and to ensure that they respect one another.

Each of these areas has a policy group that monitors compliance with the relevant area and which reports directly to senior management.

All policies and procedures are reviewed and approved annually by the trustees and employees are informed of changes.

Financial risk management

Our risk-management process is overseen by the Finance and Audit subcommittee. In controlling and underpinning financial risk, the following are key control procedures:

The Finance Manual is updated regularly and sets out the key financial disciplines expected of staff in managing their role, responsibility, operation or entity. The Finance Manual forms part of an employee’s induction and is available to staff on our internal HR homepage.

The central finance function performs quarterly reviews of the results of the international offices. There are monthly finance clinics for all international finance staff where best practice is shared and regular finance training is provided.

Our financial and management information is processed and stored on several computer systems. This can lead to concerns about integrity, duplication, security, and other data issues. A disaster-recovery centre operates in the UK. Back-up systems are installed in major international offices and our servers are in a hosted data centre, providing additional resilience.

We set out data-protection compliance in a framework of policies and procedures. We also monitor compliance with data-protection policies and regularly review the effectiveness of data handling/processing activities and security controls. We have implemented a basic GDPR training programme for all staff, supplemented by a needsbased data-protection training programme for staff across different functions and at different levels. The RAD does not meet the criteria for an obligatory Data Protection Officer. However, due to our commitment to GDPR compliance, combined with the lack of internal expertise, we employ an external professional data protection services firm to support the work of the information-management committee.

The RAD operates in many jurisdictions, setting fees in local currencies, while at the same time incurring central costs in sterling. The results of the RAD are therefore prone to fluctuations due to currency gains and losses.

It is not possible to forecast movements in foreign exchange and therefore we track movements in those currencies that might adversely affect our performance. We take account of these movements when making decisions about the timing of moving funds between countries.

These risks and uncertainties are included in the corporate and activity risk registers. These are reviewed by the relevant subcommittees and board of trustees, along with actions to mitigate the risks. A further function of the risk registers is to inform business continuity plans, which are underpinned by an offsite IT disaster recovery centre to provide the necessary technological backup in the event of unforeseen problems.

Annual Report and Financial Statements

23

Financial review

Group unrestricted results £’000

During the year the group continued to recover steadily from the pandemic and reported a 7% increase in worldwide group income of £18,888,000 (2020-21: £17,607,000). This improvement is due to a return to normal trading as the effects of the pandemic restrictions eased for many countries. Expenditure subsequently increased by 20% to £19,751,000 (2020-21: £16,494,000) as face to face delivery of activities returned, resulting in increased costs of travel for freelance examiners and tutors. Furthermore, the delayed UK office move resulted in an increase in running costs in the year for both old and the new premises. The group net loss before transfers and other recognised gains and losses was £863,000 compared to a net surplus of £1,113,000 in the prior year. Contributions in the year from pandemic related government subsidy and furlough schemes reduced to £174,000 (2020-21: £1,123,000) as such schemes were phased out in the early part of the year.

The value of RAD’s unrestricted net assets increased by 23% to £26,825,000 (2020-21: £21,777,000) resulting from a gain on valuation of tangible fixed assets of £5,377,000 (2020-21: £287,000), and an exchange gain of £315,000 (2020-21: £129,000 loss) on consolidation.

The group’s overall cash position was £10,783,000, a marginal decrease on prior year (2020-21: £10,914,000). There was a net cash inflow from operations of £2,721,000, a small decrease on prior year (2020-21: £2,787,000). Capital expenditure increased from £473,000 to £2,336,000, mainly due to capital spend on the new building.

Royal Academy of Dance, year ended 31 July 2022

24

Group restricted results £’000

The RAD has a number of funds which have been built up from donations, legacies, trusts, grants, fundraising events and appeals. These are administered in accordance with the accounting policy in Note 1 (m) Fund Accounting. There was a net income of £1,211,000 before transfers and other recognised gains and losses, for the year to 31 July 2022 (2020-21: net income £724,000) (Note 26). This increase in funds is due to the continued receipt of grants and donations for the new HQ building.

The RAD is in receipt of a funding grant through to 2022-23 from the Jack Petchey Foundation to run the Step into Dance programme (a fully inclusive, community dance programme in every London borough, and in some Essex schools) as well as using its own funds. All monies received from the Foundation were spent in accordance with the programme’s aims.

Bursaries, awards and scholarships were awarded through various Scholarship Funds, Trusts, Jubilee Award and Regional schemes.

Performance by activity

Group performance by principal activity £’000

Annual Report and Financial Statements

25

Examinations

Examination fees income increased by 19% to £10,469,000 (2020-21: £8,811,000) with direct expenditure increasing by 27% to £5,170,000 (2020-21: £4,077,000). This resulted in a modest increase in net income to £5,299,000 (2020-21: £4,734,000). Total examination entries increased by 7% to 196,173 (2020-21: 182,560).

During the year we began the gradual return to in person examinations, although in some countries where restrictions were still in force clue to the pandemic we continued to deliver filmed examinations, with footage being sent to RAD (London) for assessment. Where lockdown restrictions were not in place, we offered teachers and learners the option of filmed examination submission or assessment. This proved to be a very successful initiative and will become a part of the RAD’s product offer, affording teachers and learners the flexibility to film at a time and venue suitable to them.

During the year to 31 July 2022, 94,464 candidates were assessed by video (48% of total entries).

Education and training income

Initial Education income increased by £70,000 on prior year to £3,414,000, with net income increasing from £679,000 to £744,000. During the year the Faculty of Education gradually returned to in-person delivery of programmes, in particular BA (Hons) Ballet Education and Licentiate of the RAD both of which are normally delivered onsite. In some countries delivery of programmes remains online or through hybrid modes due to continuing pandemic-related restrictions.

The number of Faculty of Education students decreased from 1,129 to 949, mainly due to global financial constraints and the ongoing effects of the pandemic affecting both new and continuing students.

Income from Continuing Education increased by 39% to £2,127,000 (2020-21: £1,533,000) which demonstrated that CPD activity was also recovering during the year. As restrictions lifted, more face-to-face courses resulted in an increase in expenditure of 33%, with overall net income of £222,000 (2020-21: £101,000).

Membership

Subscription income increased by 3% to £1,148,000 (2020-21: £1,111,000) and direct expenditure was £364,000 with a marginal increase on prior year (2020-21: £355,000). Net income not including indirect costs was £784,000 (2020-21: £756,000).

The number of registered teachers increased from 7,754 to 7,934. All other members decreased from 4,062 to 3,938.

Trading income (retail, licensing and royalties)

Trading income generated by the UK trading subsidiary, together with licensing and royalty income, increased to £1,022,000 (2020-21: £931,000). Overall net income doubled to £714,000 (2020-21: £360,000).

Fundraising

Fundraising income increased by 6% to £1,737,000 and direct expenditure increasing by 6% to £316,000, excluding support costs, resulting in net income excluding indirect costs of £1,421,000 (2020-21: £1,338,000). During the year fundraising income again primarily comprised donations for the new HQ building.

Other income

Other income is derived from advertising, rental from studios, the Coronavirus Job Retention Scheme, government support due to the pandemic, sundry income, and gains on exchange, with associated expenditure and taxation on subsidiary company profits.

Indirect costs increased from £7,068,000 to £9,064,000 mainly due to the re-introduction of in-person examinations and course delivery as the global pandemic restrictions lifted, and increased costs of maintaining both the old and new London premises during the office move.

Royal Academy of Dance, year ended 31 July 2022

26

Performance against targets for 2021-22

There were 11,872 members globally on 31 July 2022 achieving 99% of the total target. The team focused mostly on enhancing benefits for members and building the membership base. A set of recruitment campaigns will be rolled out during 2022-23.

Number of members worldwide

Number of members

We exceeded our 2021-22 target of delivering 181,033 dance examinations by 8%, achieving 196,173, of which 94,464 were filmed assessments. This was an encouraging achievement considering the global impact of the pandemic and the increased cost of living. That 49% of examinations were filmed highlights the continued importance of that option, particularly in key markets for the RAD such as China and Hong Kong, which exclusively carried out filmed examinations during 2021-22.

Number of examinations worldwide

Number of examinations

Annual Report and Financial Statements

27

Reserves policy

The RAD’s current pattern of activities provides fluctuating peaks in cashflow. It needs to build up reserves not only to cover these periods but also to ensure that its core activities can be financed in the event of unforeseen and unbudgeted changes in income and expenditure.

At 31 July 2022 RAD had total funds of £29,693,000 of which unrestricted funds are £26,825,000 and restricted funds £2,868,000. Of the unrestricted funds, the designated funds total is £24,865,000. £24,610,000 represents the net book value of fixed assets less associated loans, and £255,000 other designated funds (see note 27). RAD reviews its reserves policy annually. The long-term target for group free reserves is £2,388,000 with £1,549,000 being within UK reserves. Actual free reserves at 31 July 2022 for the group were £2,215,000 (including other designated reserves) (2020-21: £2,081,000). For the UK only, actual free reserves at 31 July 2022 were £541,000. (2020-21: £nil). During 2021-22 we have seen a return towards more normal levels of operations and we expect this to continue throughout 2022-23 as we continue to build the reserves position to the target level.

The RAD reserves policy recognises that free reserves are only one indicator of financial health. We particularly focus on the group and UK cash position. For 2021-22, cash balances have held up well relative to the previous year because of the resumption of full-scale operations and tighter cash management across the group. This will continue as we build our reserves towards the policy target.

Going concern

The trustees recognise that the RAD must be a well-managed, well-funded and well-governed organisation to achieve its strategic objectives. They believe that a robust business model and corporate structure backed by a sound technological, marketing, and communications infrastructure with good physical and human resources will deliver that aim.

There was a net cash inflow for the group of £19,000 in 2021-22 (2020-21: £5,486,000), with an inflow from operating activities of £2,721,000 (2020-21: £2,787,000 inflow). After revaluation due to exchange rates, this resulted in cash and cash equivalents of £10,783,000 at year end (2020-21: £10,914,000).

The RAD generated an overall net income of £348,000. During the year there was a delay in the move to our new global headquarters which placed considerable financial demands on our reserves due to the maintenance of two buildings whilst staff and students were moved to the new building in phases. The cost of the new building was financed by the term loan, income from the sale of the old property, and significant fundraising activity which raised £3.2m. Furthermore, in-person delivery of examinations and courses resumed as the worst effects of the pandemic eased, giving rise to increased travel costs for tutors and examiners. We continued to offer hybrid and online exams, courses, events, workshops, and conferences in countries where restrictions remained.

HSBC Bank Plc renewed the RAD’s grouping facility of £700,000 for a further year in September 2022. Royal Academy of Dance Enterprises Limited’s overdraft facility of £300,000 was also renewed for a further year in September 2022.

The RAD has a CBILS loan of £800,000 in place with HSBC, which was drawn down in March 2021. This is to be repaid over five years (starting in April 2022). The term loan of £2,500,000 was taken out over 25 years (with an initial term of five years). Both of these loans are secured on the RAD’s headquarters at 188 York Road.

Achievement of the RAD’s targets for 2022-23 is dependent on the ongoing impact of the pandemic and the global recession but results to date have been broadly in line with targets. Forecasts have been reviewed for the twelvemonth period from the date of signing the accounts, including downside scenario planning and mitigating actions against these. Possible mitigating actions include further cost reductions that can be implemented, funds that can be repatriated from overseas and, given the relatively low level of borrowings compared to the valuation of the headquarters and overseas properties, opportunity to raise additional financing if required. The RAD will have sufficient resources available to meet its liabilities as they fall for the twelve-month period from the date of signing the accounts and for this reason have prepared the accounts on a going-concern basis.

Royal Academy of Dance, year ended 31 July 2022

28

Outlook

While this has been another challenging year, it has again highlighted the dedication of all those involved with the organisation around the world. In particular, we should pay tribute to the staff, examiners, tutors, teachers, students and parents who make the RAD the great organisation that it is.

We continued to adapt our ways of operating, particularly in terms of digital and online systems. This flexibility not only allowed us to continue activities during the pandemic but will provide further benefits and efficiencies in the future. Our targets for the year 2022-23 are set out below.

We are excited by the opportunities for the global RAD that the move to our new headquarters will bring.

Our targets for 2022-23 are to:

Annual Report and Financial Statements

29

Statement of the Board of Trustees’ responsibilities

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.

The law applicable to charities in England and Wales requires the trustees 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:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed, Royal Charter and Bye Laws. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Guy Perricone Chair, Board of Trustees

James Cane, FCA Chair, Finance and Audit Subcommittee

Tim Arthur Chief Executive

15 December 2022

Royal Academy of Dance, year ended 31 July 2022

30

Independent auditor’s report to the Trustees of the Royal Academy of Dance

Report on the audit of the financial statements

Opinion

We have audited the financial statements of The Royal Academy of Dance (‘the charity’) and its subsidiaries (‘the group’) for the year ended 31 July 2022 which comprise the group consolidated statement of financial activities, group and charity balance sheets, group 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:

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 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 charity’s or the group’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 contained within the annual report. 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 in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Annual Report and Financial Statements

31

Opinion on other matters prescribed by the OfS accounts direction

No funds have been provided to the charity by the OfS.

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 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 30, 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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011, and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out below.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members including significant component audit teams. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

Royal Academy of Dance, year ended 31 July 2022

32

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Employment legislation and Office for Students regulation. We also considered compliance with local legislation for the group’s overseas operating segments.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance and Audit Subcommittee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and Office for Students and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the 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 charity’s 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP

Statutory Auditor London

19 December 2022

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Annual Report and Financial Statements

33

Group consolidated statement of financial activities

For the year to 31 July 2022

Notes

2
3
4
5
6
7
8
9
11		 2022
2021
Unrestricted
funds
£’000
Restricted
funds
£’000
Total
funds
£’000
Unrestricted
funds
£’000
Restricted
funds
£’000
Total
funds
£’000
Income from
Donations and legacies
547
1,190
1,737
891
746
1,637
Trading
722
-
722
655
-
655
Other trading activities
261
39
300
272
4
276
Investments
17
6
23
11
-
11
Income from charitable activities
Examination fees
10,469
-
10,469
8,811
-
8,811
Education and training fees
5,054
487
5,541
4,542
335
4,877
Subscription income
1,148
-
1,148
1,111
-
1,111
Other income
670
16
686
1,314
3
1,317
Total income
18,888
1,738
20,626
17,607
1,088
18,695
Expenditure
Expenditure on raising funds
(1,424)
(26)
(1,450)
(1,200)
(45)
(1,245)
Expenditure on charitable
activities
(17,846)
(501)
(18,347)
(14,903)
(319)
(15,222)
Other expenditure
(481)
-
(481)
(391)
-
(391)
Total expenditure
(19,751)
(527) (20,278)
(16,494)
(364)
(16,858)
Net income/(expenditure) before
investment gains and losses and
transfers between funds
(863)
1,211
348
1,113
724
1,837
Net gains on investments
-
-
-
-
-
-
Net income/(expenditure)
(863)
1,211
348
1,113
724
1,837
Transfers
Transfers between funds
(16)
16
-
(2)
2
-
Other recognised gains and
losses
On revaluation of tangible fixed
assets
5,576
-
5,576
287
-
287
Movement on exchange arising
from the consolidation of
branches and subsidiaries
351
(2)
349
(129)
(2)
(131)
Net movement in funds
5,048
1,225
6,273
1,269
724
1,993
Fund balances brought forward at
1 August
21,777
1,643
23,420
20,508
919
21,427
Total funds carried forward at
31 July
26,825
2,868
29,693
21,777
1,643
23,420

There were no recognised gains and losses other than those listed above and the net expenditure/income for the year. All income relates to continuing operations.

Royal Academy of Dance, year ended 31 July 2022

34

Group and charity balance sheets

At 31 July 2022

Notes

19
20
21
22
23
24
26
27		 Group
Charity
2022
£’000
2021
£’000
2022
£’000
2021
£’000
Fixed assets
Tangible and intangible assets
27,523
19,696
27,311
19,483
Investments
165
150
276
264
Total
27,688
19,846
27,587
19,747
Current assets
Stocks
304
336
153
142
Debtors
1,473
1,486
2,566
1,998
Cash at bank and in hand
10,783
10,914
7,379
8,248
Total
12,560
12,736
10,098
10,388
Creditors – amounts falling due within one year
(7,577)
(5,900)
(6,900)
(5,517)
Net current assets
4,983
6,836
3,198
4,871
Total assets less current liabilities
32,671
26,682
30,785
24,618
Creditors – amounts falling due after more
than one year
(2,978)
(3,262)
(2,978)
(3,262)
Net assets
29,693
23,420
27,807
21,356
FUNDS
Restricted funds
2,868
1,643
2,868
1,637
Unrestricted funds
26,825
21,777
24,939
19,719
Total funds
29,693
23,420
27,807
21,356

The accompanying notes form part of these accounts.

These financial statements were approved and signed on behalf of the Board of Trustees on 15 December 2022 by:

Guy Perricone Chair, Board of Trustees

James Cane FCA Chair, Finance and Audit Subcommittee

Tim Arthur Chief Executive

Annual Report and Financial Statements

35

Group cash flow statement

For the year to 31 July 2022

Restricted and unrestricted funds
Notes
a.
STATEMENT OF CASH FLOWS
Cash flows from operating activities:
Net cash provided by operating activities
b.
Cash flows from investing activities:
Interest receivable
Interest payable
Purchase of tangible fixed assets and construction-in-
progress
Net cash (used in) investing activities
Cash flows from financing activities:
Amounts borrowed from/(repaid) to banks
Net cash provided by /(used in) financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting
period
Change in cash and cash equivalents due to exchange rate
moments
Cash and cash equivalents at the end of the reporting period
c.
b.
Reconciliation of net income to net cash flow from operating activities
Net income for the reporting period
(as per the statement of financial activities)
Adjustments for:
Revaluation/(impairment) on investment
Interest receivable
Interest payable
Amortisation of intangible fixed assets
Overseas tax received/(paid)
Depreciation – tangible fixed assets
Decrease in stocks
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Effect of foreign exchange on net assets
Net cashprovided by operating activities
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 Restricted and unrestricted funds
Notes
a.
STATEMENT OF CASH FLOWS
Cash flows from operating activities:
Net cash provided by operating activities
b.
Cash flows from investing activities:
Interest receivable
Interest payable
Purchase of tangible fixed assets and construction-in-
progress
Net cash (used in) investing activities
Cash flows from financing activities:
Amounts borrowed from/(repaid) to banks
Net cash provided by /(used in) financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting
period
Change in cash and cash equivalents due to exchange rate
moments
Cash and cash equivalents at the end of the reporting period
c.
b.
Reconciliation of net income to net cash flow from operating activities
Net income for the reporting period
(as per the statement of financial activities)
Adjustments for:
Revaluation/(impairment) on investment
Interest receivable
Interest payable
Amortisation of intangible fixed assets
Overseas tax received/(paid)
Depreciation – tangible fixed assets
Decrease in stocks
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Effect of foreign exchange on net assets
Net cashprovided by operating activities
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 2022
2021
£’000
£’000
2,721
2,787
24
11
(212)
(127)
(2,336)
(473)
(2,524)
(589)
(178)
3,288
(178)
3,288
19
5,486
10,914
5,406
(150)
22
Cash and cash equivalents at the end of the reporting period
c.		 10,783
10,914
Reconciliation of net income to net cash flow from operating activities
Net income for the reporting period
(as per the statement of financial activities)
Adjustments for:
Revaluation/(impairment) on investment
Interest receivable
Interest payable
Amortisation of intangible fixed assets
Overseas tax received/(paid)
Depreciation – tangible fixed assets
Decrease in stocks
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Effect of foreign exchange on net assets		 348
1,837
(1)
9
(23)
(11)
212
127
5
4
(1)
19
740
465
255
-
(385)
1,454
1,571
(1,114)
-
(3)
Net cashprovided by operating activities 2,721
2,787
Analysis of cash and cash equivalents
Cash in hand		 10,783
10,914
Total cash and cash equivalents 10,783
10,914

Royal Academy of Dance, year ended 31 July 2022

36

Analysis of changes in net cash
Cash at bank and in hand
Total cash and cash equivalents
Debt due within one year
Debt due after oneyear		 2021
Cash flow
movement
2022
£’000
£’000
£’000
10,914
(131)
10,783
10,914
(131)
10,783
(163)
(103)
(266)
(3,232)
281
(2,951)
Total 7,519
47
7,566

Annual Report and Financial Statements

37

Accounting policies

Year ended 31 July 2022

The RAD is a non-statutory body incorporated by Royal Charter and a charity registered in England and Wales (number RC000436). The address of the registered office is 188 York Road, London SW11 3JZ.

Notes

1(a) Basis of accounting

The accounts (financial statements) have been prepared in accordance with the Charities SORP (FRS102) applicable to charities preparing their accounts in accordance with FRS102 the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Charities Act 2011 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the previous Statement of Recommended Practice: Accounting and Reporting by Charities which was effective from 1 April 2005 but which has since been withdrawn. The RAD meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value except for investments and certain fixed assets which have been included at revalued amounts. The charity meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemption available to it in respect of its separate financial statements in relation to presentation of a cash flow statement.

The financial statements are prepared in sterling, which is the functional currency of the parent entity.

1(b) Going concern

The trustees recognise that the RAD must be a well-managed, well-funded and well-governed organisation to achieve its strategic objectives. They believe that a robust business model and corporate structure backed by a sound technological, marketing, and communications infrastructure with good physical and human resources will deliver that aim.

There was a net cash inflow for the group of £19,000 in 2021-22 (2020-21: £5,486,000), with an inflow from operating activities of £2,721,000 (2020-21: £2,787,000 inflow). After revaluation due to exchange rates, this resulted in cash and cash equivalents of £10,783,000 at year end (2020-21: £10,914,000).

The RAD generated an overall net income of £348,000. During the year there was a delay in the move to our new global headquarters which placed considerable financial demands on our reserves due to the maintenance of two buildings whilst staff and students were moved to the new building in phases. The cost of the new building was financed by the term loan, income from the sale of the old property, and significant fundraising activity which raised £3.2m. Furthermore, in-person delivery of examinations and courses resumed as the worst effects of the pandemic eased, giving rise to increased travel costs for tutors and examiners. We continued to offer hybrid and online exams, courses, events, workshops, and conferences in countries where restrictions remained.

HSBC Bank Plc renewed the RAD’s grouping facility of £700,000 for a further year in September 2022. Royal Academy of Dance Enterprises Limited’s overdraft facility of £300,000 was also renewed for a further year in September 2022.

The RAD has a CBILS loan of £800,000 in place with HSBC, which was drawn down in March 2021. This is to be repaid over five years (starting in April 2022). The term loan of £2,500,000 was taken out over 25 years (with an initial term of five years). Both of these loans are secured on the RAD’s headquarters at 188 York Road.

Achievement of the RAD’s targets for 2022-23 is dependent on the ongoing impact of the pandemic and the global recession but results to date have been broadly in line with targets. Forecasts have been reviewed for the twelve-month period from the date of signing the accounts, including downside scenario planning and mitigating actions against these. Possible mitigating actions include further cost reductions that can be implemented, funds that can be repatriated from overseas and, given the relatively low level of borrowings compared to the valuation of the headquarters and overseas properties, opportunity to raise additional financing if required. The RAD will have sufficient resources available to meet its liabilities as they fall for the twelve-month period from the date of signing the accounts and for this reason have prepared the accounts on a going-concern basis.

Royal Academy of Dance, year ended 31 July 2022

38

Notes

Accounting policies

Year ended 31 July 2022

1(c) Basis of consolidation

The charity accounts include the audited accounts of the Royal Academy of Dance in the United Kingdom and its branches for the year to 31 July 2022, and the consolidated group accounts include the audited accounts of the charity and its subsidiaries. All activities derive from continuing operations.

1(d) Stocks and work-in-progress

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Provision is made for obsolete, slow-moving or defective items where appropriate. Costs relating to the development of examination syllabi and teaching aids are treated as work-in-progress until the product is ready for sale.

1(e) Tangible fixed assets

All tangible fixed assets, other than freehold land, are stated at historical cost or valuation net of depreciation and any provision for impairment. Depreciation is provided on cost using the straight-line method over the estimated useful lives of the assets. Impairment reviews are conducted when events and changes in circumstances indicate that impairment may have occurred. If any asset is found to have a carrying value materially higher than its recoverable amount, its value is written down accordingly. Freehold land is not depreciated. Tangible fixed assets under £500 are not capitalised. The rates of depreciation are as follows:

Freehold buildings 2% Furniture and office equipment 10% Computer equipment 33% Motor vehicles 25%

1(f) Intangible fixed assets

Intangible fixed assets consist of computer software and telephone subscription rights of subsidiary companies which are included at cost and amortised in equal instalments over a period of years estimated to be their useful economic life. Provision is made for any impairment.

1(g) Investments

Listed investments are included in the balance sheet at market value. Investments in subsidiaries and joint ventures are included in the charity’s accounts at cost less any provision for impairment.

1(h) Revaluation of assets

Investments and land and buildings held by the group for restricted and unrestricted use are revalued annually to fair value where material. The gain or loss is reflected in the statement of financial activities and, for land and buildings, includes the amount of amortisation of buildings provided in that year.

1(i) Overseas currencies

Income, expenditure, assets and liabilities of overseas branches and subsidiaries are translated into sterling at the exchange rates ruling at the balance sheet date. The exchange gains or losses arising from the retranslating of opening net assets of the overseas branches and subsidiaries are shown under ‘Other recognised gains or losses’ in the statement of financial activities. All other exchange gains or losses are dealt with through expenditure within the statement of financial activities.

Annual Report and Financial Statements

39

Accounting policies

Year ended 31 July 2022

Notes

1(j) Recognition of income

Income is recognised in the statement of financial activities on a receivable basis, namely when the RAD has entitlement to the income, receipt is probable, and the amount can be reliably measured. If there are conditions that must be fulfilled before entitlement to income received is confirmed, the income is deferred and included under creditors.

Assets such as gifts or donations given for use by the RAD are recognised as income at their estimated market value when receivable. If they form part of the fixed assets at the year-end, the amounts are included in the balance sheet at the value at which the gift was included in income.

Income received in advance for exams or short courses where the activity does not complete until after the year-end is apportioned to the relevant financial year; or for a longer period in the case of fees for programmes such as the Faculty of Education’s ‘Certificate in Ballet Teaching Studies’, which is a two-year programme that falls across three financial periods.

Government grant income has been included within “Other income”. This grant income relates to the UK government job-retention scheme (furlough) introduced in March 2020 to mitigate some of the financial impact of the Covid-19 pandemic. The grant is classified as a revenue-based grant as per the FRS102 accrual model and stipulates that the revenue must be recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. The furlough scheme ceased to operate with effect from 1 October 2021.

1(k) Recognition of expenditure

Unrestricted expenditure is accounted for on an accruals basis. Expenditure is allocated directly to the activity to which it relates, including support costs that can be identified as being an integral part of direct charitable expenditure.

Salaries and pensions staff numbers per department General administration staff numbers per department Information technology staff numbers per department Rent and property departmental use for office space and income generated for studio space Depreciation estimated use Governance staff numbers per department Finance charges income-to-cost ratio

1(l) Pension costs

Retirement benefits for employees are provided by defined-contribution pension schemes and for teachers by the Teachers’ Pension Scheme (TPS), a defined-benefit scheme. The TPS is a multi-employer scheme where the RAD cannot identify its individual share of assets and is therefore accounted for as a defined-contribution scheme. Contributions payable to the pension schemes in respect of each accounting period are charged to the statement of financial activities.

Royal Academy of Dance, year ended 31 July 2022

40

Accounting policies

Year ended 31 July 2022

Notes

1(m) Fund accounting

Funds can be classified as designated, general or restricted. General funds are all unrestricted funds which are not designated and can be applied at the discretion of the trustees in accordance with the RAD’s charitable objects.

Restricted funds are those which are to be used in accordance with specific restrictions of the donors or which have been raised by the charity for particular purposes. The purpose for which restricted funds are held is analysed in note 26.

1(n) Regional advisory committees

The charity carries out some activities through a network of regional advisory committees that include the name of the charity in their title and are located in some of the countries in which the charity operates. All regional advisory panel and committee transactions are accounted for gross in the accounts of the charity, and all assets and liabilities are included in the charity’s balance sheet.

1(o) Treatment of VAT

The RAD is registered as partially exempt for VAT in the UK and is exempt or liable for VAT or applicable taxes in other parts of the world. Irrecoverable VAT is charged to the activity to which it relates or otherwise forms part of the support costs and is then apportioned as per note 1(k).

1 (p) Financial instruments

Trade and other debtors are recognised at the settlement amount due after any discount offered and net of the bad-debt provision. Prepayments are valued at the amount prepaid. Creditors and provisions are recognised where the group 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.

1 (q) Operating leases

Operating lease rentals are charged and credited to the Statement of Financial Activities on a straight-line basis over the length of the lease.

1 (r) Critical accounting judgments and key sources of estimation uncertainty

In the application of the group’s accounting policies, which are described above, the trustees are required to make judgments (other than those involving estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions about the carrying amounts of assets and liabilities. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key sources of estimation uncertainty

In the opinion of the trustees, there are no key assumptions concerning the future, and no other key sources of estimation uncertainty at the balance sheet date that would carry a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Annual Report and Financial Statements

41

Notes to the accounts

Year ended 31 July 2022

Notes

2
Income from:
Donations, gifts and legacies
Funding grants		 2022
Unrestricted
funds
£’000
Restricted
funds
£’000
Total
funds
£’000
270
-
270
277
1,190
1,467
547
1,190
1,737		 2021
Unrestricted
funds
£’000
Restricted
funds
£’000
Total
funds
£’000
73
161
234
818
585
1,403
891
746
1,637

3 Retail trading

Retail trading consists of sales made by Royal Academy of Dance Enterprises Limited and branch outlets of the RAD.

Turnover net of taxes and discounts
Cost of sales and other costs
Net income from retail trading		 2022
£’000
722
(308)
414		 2021
£’000
655
(571)
84
4
Other trading activities
Fundraising activities
Licensing and royalty income
Property and studio hire
5
Investment income
Interest received
6
Education and training fees
Initial education
Continuing education		 2022
Unrestricted
funds
£’000
Restricted
funds
£’000
Total
funds
£’000
4
39
43
242
-
242
15
-
15
261
39
300
17
6
23
17
6
23
3,414
-
3,414
1,640
487
2,127
5,054
487
5,541		 2021
Unrestricted
funds
£’000
Restricted
funds
£’000
Total
funds
£’000
1
4
5
258
-
258
13
-
13
272
4
276
11
-
11
11
-
11
3,326
18
3,344
1,216
317
1,533
4,542
335
4,877

Royal Academy of Dance, year ended 31 July 2022

42

Notes to the accounts

Year ended 31 July 2022

Notes
7
Other income
Advertising income
Furlough income*
All other income		 24
-
24
96
-
96
174
-
174
1,123
-
1,123
472
16
488
95
3
98
2022
2021
Unrestricted
funds
£’000
Restricted
funds
£’000
Total
funds
£’000
Unrestricted
funds
£’000
Restricted
funds
£’000
Total
funds
£’000
670
16
686
1,314
3
1,317
Australia
Canada
New Zealand
USA
Germany
Israel
Italy
Singapore
UK		 2022
£’000
-
29
-
-
59
-
41
8
37
174		 2021
£’000
147
252
2
42
17
2
26
6
629
1,123
2022 2021
Unrestricted Restricted Restricted
funds funds funds
Direct Direct Support Total Direct Direct Support Total
costs costs costs funds costs costs costs funds
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
8
Fundraising
activities
290
26
49
365
Retail trading
308
-
777
1,085
598
26
826
1,450
9
Examinations
5,170
-
3,867
9,037
Initial education
2,670
-
2,583
5,253
Continuing
education
1,404
501
1,035
2,940
Subscriptions
364
-
753
1,117
9,608
501
8,238
18,347
Costs of raising funds
Costs of charitable activities		 8
Fundraising
activities
290
26
49
365
Retail trading
308
-
777
1,085
598
26
826
1,450
9
Examinations
5,170
-
3,867
9,037
Initial education
2,670
-
2,583
5,253
Continuing
education
1,404
501
1,035
2,940
Subscriptions
364
-
753
1,117
9,608
501
8,238
18,347
Costs of raising funds
Costs of charitable activities		 254
45
43
342
571
-
332
903
598
26
826
1,450		 825
45
375
1,245
4,077
-
3,290
7,367
2,647
18
2,142
4,807
1,131
301
743
2,175
355
-
518
873
9,608
501
8,238
18,347		 8,210
319
6,693
15,222

Annual Report and Financial Statements

43

Notes to the accounts

Year ended 31 July 2022

Notes

2022 2021
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds funds funds
£’000 £’000 £’000 £’000 £’000 £’000
10 Auditor fees payable
Fees payable to the group's auditor and its associates for the audit of the group’s annual accounts
Audit fees
2021-22 80 - 80 89 - 89
2020-21 additional fees 12 - 12 75 - 75
Other services 1 - 1 - - -
Fees payable to the group’s auditor and its associates for the audit of the group's subsidiaries
Audit fees 44 - 44 43 - 43
Other services - - - - - -
Fees payable to other auditors for the audit of the group’s branches and subsidiaries
Audit fees 79 - 79 70 - 70
11 Other expenditure
All other expenditure 286 - 286 266 - 266
Taxation 195 - 195 125 - 125
481 - 481 391 - 391

Royal Academy of Dance, year ended 31 July 2022

44

Notes to the accounts

Year ended 31 July 2022

Notes

12 Analysis of indirect support costs[1] Unrestricted funds 2022

Salaries and pensions
General administration
Information technology
Financing charges
Depreciation
Rent and property
Governance		 Examinations
Initial
education
Continuing
education
Subscription
Trading
Fundraising
activities
Total
£’000
£’000
£’000
£’000
£’000
£’000
£’000
1,719
971
407
317
411
28
3,853
677
470
214
158
143
11
1,673
190
182
58
57
43
4
534
92
69
24
16
12
-
213
273
255
100
59
45
3
735
627
521
187
113
88
2
1,538
289
115
45
33
35
1
518
3,867
2,583
1,035
753
777
49
9,064

Unrestricted funds 2021

Salaries and pensions
General administration
Information technology
Financing charges
Depreciation
Rent and property
Governance		 Examinations
Initial
education
Continuing
education
Subscription
Trading
Fundraising
activities
Total
£’000
£’000
£’000
£’000
£’000
£’000
£’000
1,599
952
357
273
174
27
3,382
688
481
154
112
55
8
1,498
126
128
37
31
25
2
349
62
40
13
8
5
-
128
206
158
57
26
19
4
470
371
248
82
37
28
1
767
238
135
43
31
26
1
474
3,290
2,142
743
518
332
43
7,068

1 The basis of allocation of support costs are disclosed in note 1(k)

Annual Report and Financial Statements

45

Notes to the accounts

Year ended 31 July 2022

Notes

Seven trustees (2021: seven) who are also examiners, tutors or mentors received a total of £43,195 (2021: £22,171) in relation to fees and expenses. Payments to trustees who are also examiners, tutors and mentors are in accordance with Articles 6.5 and 10 of the Charter.

Trustees received no remuneration for volunteering their time. Donations were received from two trustees (£1,450) during the year (2021: £24,050)

The following related party transactions took place during the year:

Related party: Ulrich Stiehm Filmproduktion (owned by husband of National Director - Germany) Transaction: Backup and server upload of 10 exam videos including recording and IT hardware usage Cost of transaction: £101 (€119) (2021: Nil)

Amount due at 31 July 2022: £Nil (R Nil)

Related party: Manny Lume (husband of National Director - South Africa) Transaction: Property Repairs and Maintenance, General Admin, Consulting fees Cost of transaction: £10,864 (R219,811) (2021: £625 (R14,005)) Amount due at 31 July 2022: £Nil (R Nil) (2021: £Nil (R Nil))

Related party: Olivia Lume (National Director - South Africa) Transaction: Credit card expenses outstanding Cost of transaction: £209 (R4,225) (2021: Nil) Amount due at 31 July 2022: £209 (R4,225) (2021: £Nil (R Nil)) Related party: Ross Alexander (son of National Director - USA) as owner of Viabold Transaction: Website Management services Cost of transaction: £5,183 (US$6,820) (2021: £3,661 (US$5,400)) Amount due at 31 July 2022: £Nil (US$Nil) (2021: £Nil, (US$Nil)) Related party: Ferrell Alexander (daughter of National Director - USA) as part time employee Transaction: payroll costs Cost of transaction: £7,984 (US$ 10,506) (2021: £7,822 (US$11,536.20)) Amount due at 31 July 2022: £Nil (US$Nil) (2021: £Nil, (US$Nil)) Related party: Noriko Kobayashi (National Director - Japan) as owner of Kobayashi Ballet Studios Transaction: Hire of dance studios, office space and seconded staff for examinations, courses, summer school and administration Cost of transaction: £62,894 (¥9,236,852) (2021: £59,200 (¥9,346,402)) Amount due at 31 July 2022: £0 (¥ 0) (2021: £18,687 (¥2,849,524)) Related party: Dance Etc (National Director - Portugal) Transaction: Office and studio hire Cost of transaction: £3,110 (€3,674) (2021: £4,626 (€5,700)) Amount due at 31 July 2022: £Nil (€Nil) (2021: £Nil (€Nil))

Related party: Pilar Monteiro (niece of National Director) - as employee of RAD Portugal Transaction: payroll costs Cost of transaction: £14,545 (€17,182) (2021: £18,119 (€22,327.38)) Amount due at 31 July 2022: £Nil (€Nil) (2021: £Nil (€Nil))

Related party: Blanca Cortes (daughter of National Director - Spain) Transaction: Annual office rent Cost of transaction: £5,384 (€ 6,360) (2021: £5,161 (€6,360)) Amount due at 31 July 2022: £Nil (€Nil) (2021: £Nil (€Nil))

Related party: Family members (National Director - Malaysia) Transaction: Office rental and salaries Cost of transaction: £3,090 (MYR 82,814) (2021: £Nil (MYRNil) Amount due at 31 July 2022: £Nil (MYR Nil)

All transactions were at arm’s length.

Royal Academy of Dance, year ended 31 July 2022

46

Notes to the accounts

Year ended 31 July 2022

Notes

The related party transactions and intercompany balances of the charity with subsidiaries and branches are:

2022 2022 2021 2021
Gift Aid from RADE RAD Intercompany balances with RADE Intercompany balances with with RAD Intercompany loan balances with RAD (South Africa) Intercompany loan balances Gift Aid from RADE Intercompany balances with
RAD		 RADE Intercompany balances with with RAD Intercompany loan balances with RAD (South Africa) Intercompany loan balances
£’000 £’000 £’000 £’000
Royal Academy of UK 307 - (566) - - 300 - - (508) -
Dance
Royal Academy of UK - 566 - - - - 508 - - -
Dance Enterprises
Limited
Royal Academy of Brazil - - - - - 36 - - -
Dance S/C Ltda
Royal Academy of Germany - 122 - - - - 63 - - -
Dance gGmbh
Yayasan Royal Academy Indonesia - 89 - - - - 83 - - -
of Dance Indonesia
Royal Academy of Italy - 55 - - - - 50 - - -
Dance Srl
Royal Academy of Luxemburg - - - - - 57 - - -
Dance Asbl
RAD Dancing (Malaysia) Malaysia - 60 - - - - 59 - - -
Sdn Bhd
Royal Academy of Mexico - 47 - - - - (46) - - -
Dance de Mexico AC
Royal Academy of Singapore - 89 - - - - 108 - - -
Dance Singapore Pte
Ltd
Royal Academy of South Africa - - - - 7 - - - - 27
Dance s21 Company
Royal Academy of Spain - 56 - - - - 65 - - -
Dance SL
RAD Dancing (Thailand) Thailand - 14 - - - - 14 - - -
Sdn Bhd
Royal Academy of Australia - - 13 - - - 89 89 - -
Dance (Australia
Branch)
Royal Academy of Canada - (69) 12 - - - 107 78 - -
Dance (Canada Branch)
Royal Academy of Israel - 37 - - - - 27 - - -
Dance (Israeli Branch)
Royal Academy of Japan 40 3 - - - 30 1 - -
Dance (Japan Branch)

Annual Report and Financial Statements

47

Notes to the accounts

Year ended 31 July 2022

Notes

Royal Academy New Zealand - (370) 17 (60) - - (375) 16 (88) -
of Dance (New
Zealand Branch)
Royal Academy of Portugal - 52 - - - - 16 - - -
Dance
Royal Academy of South Africa - 45 15 22 - - 11 8 22 -
Dance
Royal Academy of USA - 9 31 - - - 24 30 - -
Dance

14 Funds held as custodian trustees

At the year end, the group held monies totalling £7,519 (2020-21: £196,353) on behalf of its clients and the Charity held monies totalling £7,519 (2020-21: £196,353). These monies are not included within the balance sheet and are held separately in a clearly identifiable bank account.

15 Indemnity insurance

Indemnity insurance was included as part of the RAD’s global policy to indemnify the RAD from loss arising from the neglect or default of its trustees, employees or agents and to indemnify the trustees and other officers against the consequence of any neglect or default on their part, in accordance with Article 6(h) of the Charter. The cost for the year to 31 July 2022 was £27,465 (2020-21: £16,800).

16 Costs of employees

a) The average number of employees was 213.6 (2020-21: 236.5) administrative staff and 28.0 (2020-21: 10.0) commission-based staff worldwide, as well as contracting the services of examiners, teachers, tutors and musicians. Employment costs account for 58% (2020-21: 64%) of total expenditure (excluding other expenditure):

2022 2021
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds funds funds
£’000 £’000 £’000 £’000 £’000 £’000
Employee gross salaries 10,104 - 10,104 8,968 - 8,968
Employee payroll taxes 728 - 728 681 - 681
Employer pension contribution
s		 531 - 531 492 - 492
Employees on commission 333 - 333 672 - 672
Total employment costs 11,696 - 11,696 10,813 - 10,813

The RAD has a number of Regional Advisory Committees (RAC) in Australia, Greece, South Africa and the UK. These RACs operate through committees consisting of up to ten volunteer members and hold student events and activities throughout the year. Many of these activities are carried out by volunteers who are entitled to reimbursement of their expenses.

Royal Academy of Dance, year ended 31 July 2022

48

Notes to the accounts

Year ended 31 July 2022

Notes

b) Employees earning over £60,000 including benefits in kind:

Basic salary 2022 2021
Number of group employees earning:
Between £125,001 – £130,000 - 1
Between £100,001 – £105,000 1 1
Between £70,001 – £80,000 5 5
Between £60,001 – £70,000 8 7

The total employee benefits for the executive board of the charity (as listed on page 4), including employer’s pension contributions and national insurance, were £784,000 (2020-21: £760,000).

c) Employees earning over £100,000:

2022 2021
Basic salary £ £
Between £100,001 - £105,000 1 1
Former chief executive (retired April 2022)
Basic salary : Average staff salary ratio 4:1 4:1
Total remuneration: Average staff total remuneration 4:1 4:1
Incumbent chief executive (started March 2022)
Basic salary : Average staff salary ratio 4:1 4:1
Total remuneration: Average staff total remuneration 4:1 4:1

The chief executive salary is based on current market rates for similar roles in the non-profit sector.

Former chief executive (retired April 2022)

Former chief executive (retired April 2022)
Basic salary
Pension contributions
Occupational health insurance
Total remuneration
Incumbent chief executive (started March 2022)
Basic salary
Pension contributions
Occupational health insurance
Total remuneration		 2022
2021
£
£
100,585
127,345
11,386
14,415
4,376
5,333
116,347
147,093
2022
2021
£
£
50,000
-
2,263
-
-
-
52,263
-

Redundancy payments of £62,660 (2020-21: £12,105) were made during the year with £0 owed as at 31 July 2022 (2020-21: £23,705).

Annual Report and Financial Statements

49

Notes to the accounts

Year ended 31 July 2022

Notes

17 Pension costs

The pensions charge for the year to 31 July 2022 was £531,000 (2020-21: £492,000).

In the UK the RAD currently operates two schemes, representing in total 133 (2020-21: 149) employees.

Provider

Type of scheme

Aegon Scottish Equitable Defined-contribution scheme

Teachers’ Pension Scheme (TPS) A contracted-out, unfunded, defined-benefit occupational pension scheme

Elsewhere the RAD operates or contributes to a variety of defined-contribution schemes, money-purchase schemes or statutory schemes, representing 69 (2020-21: 63) employees in 12 (2020-21: 12) countries.

18 Taxation

The RAD is a charitable organisation and is entitled to UK tax exemptions available to charities under the Corporation Tax Act 2010 (chapters 2 and 3 of part ii, section 466 onwards). Royal Academy of Dance Enterprises Limited gift aids its “annual profits”, as defined by a Deed of Covenant entered into with the RAD. Provision for UK taxation has only been made in respect of any residual profit of Royal Academy of Dance Enterprises Limited. Subject to the availability of similar charitable exemptions overseas, provision has been made for overseas taxation on the profits of overseas subsidiaries and branches.

Royal Academy of Dance, year ended 31 July 2022

50

Notes to the accounts

Year ended 31 July 2022

Notes

19 Tangible and intangible fixed assets

Intangibles Freehold Furniture Computer Motor Total
land and and office equipment vehicles
buildings equipment
Group £’000 £’000 £’000 £’000 £’000 £’000
Cost or Valuation
At 1 August 2021 77 19,007 653 3,239 48 23,024
Exchange-rate movements (8) 240 19 59 5 315
Additions - 16,861 1,210 262 - 18,333
Disposals - (15,580) (323) (94) - (15,997)
Revaluation - 5,377 - - - 5,377
At 31 July 2022 69 25,905 1,559 3,466 53 31,052
Accumulated depreciation
At 1 August 2021 59 - 590 2,631 48 3,328
Exchange-rate movements (8) - 18 54 5 69
Charge for the year 5 199 77 459 - 740
Eliminated on disposals - - (315) (94) - (409)
Revaluation - (199) - - - (199)
At 31 July 2022 56 - 370 3,050 53 3,529
Net book value
At 31 July 2022 13 25,905 1,189 416 - 27,523
At 31 July2021 18 19,007 63 608 - 19,696
Charity
Cost or Valuation
At 1 August 2021 51 18,865 540 3,120 48 22,624
Exchange-rate movements (8) 240 19 59 5 315
Additions - 16,861 1,192 260 - 18,313
Disposals - (15,580) (323) (89) - (15,992)
Revaluation - 5,377 - - - 5,377
At 31 July 2022 43 25,763 1,428 3,350 53 30,637
Accumulated depreciation
At 1 August 2021 50 - 514 2,529 48 3,141
Exchange-rate movements (8) - 18 54 5 69
Charge for the year - 199 66 453 - 718
Eliminated on disposals - - (315) (88) - (403)
Revaluation - (199) - - - (199)
At 31 July 2022 42 - 283 2,948 53 3,326
Net book value
At 31 July 2022 1 25,763 1,145 402 - 27,311
At 31 July2021 1 18,865 26 591 - 19,483

Annual Report and Financial Statements

51

Notes to the accounts

Year ended 31 July 2022

Notes

19 Tangible and intangible fixed assets (continued)

The RAD owns freehold properties in the UK, Australia and South Africa. The current valuations, after amortisation charges and exchange gains arising out of the translation of Group freehold properties at the end of the financial year, are:

United Kingdom
Australia
South Africa
Total		 Value at
1 August
2021
Exchange
movement
Charge for
the year
Additions
to freehold
Disposals
to freehold
Increase
in valuation
Value at 31
July 2022
£’000
£’000
£’000
£’000
£’000
£’000
16,107
-
(174)
16,861
(15,580)
5,275
22,489
2,758
155
-
-
-
275
3,188
142
86
-
-
-
-
228
19,007
241
(174)
16,861
(15,580)
5,550
25,905

The freehold property in London, UK was valued as at 31 July 2022 at fair value in accordance with the RICS Valuation – Global Standards effective 31 January 2022, which incorporates the International Valuation Standards (IVS) and, where applicable, the relevant RICS national or jurisdictional supplement (the “RICS Red Book – Global Standards”) and in accordance with UK Generally Accepted Accounting Principles (UK GAAP) – FRS 102. The valuation was carried out by Daniel Watney LLP, Chartered Surveyors.

The freehold property in Sydney, Australia was valued on 31 July 2022 at fair value. This valuation was carried out by Cviker Property Valuations & Consultancy.

The valuation of the freehold property in Johannesburg, South Africa was taken from the latest edition of the Johannesburg Municipality rating, which is revised periodically.

The charity does not hold any heritage assets, which are defined as tangible fixed assets with historical, artistic, scientific, technological, geophysical or environmental qualities that are held and maintained principally for their contribution to knowledge and culture.

Royal Academy of Dance, year ended 31 July 2022

52

Notes to the accounts

Year ended 31 July 2022

Notes

20 Investments

Investments
Group Charity
2022 2021 2022 2021
£’000 £’000 £’000 £’000
Quoted investments
Market value at 1 August 151 154 151 154
Investment during the year 13 5 13 5
Net realised/unrealised gains/ 1 (9) 1 (9)
(losses)
Market value at 31 July 165 150 165 150
Historical cost at 31 July
 99 99 99 99
Investments in subsidiaries
Balance at 1 August - - 114 114
Exchange differences - - (3) -
At 31 July - - 111 114
Total investments at 31 July 165 150 276 264
Quoted investments
Held in the UK 54 54 54 54
Held outside the UK 111 96 111 96

All quoted investments are held within restricted funds, are listed on a recognised stock exchange and are valued at market value at year-end.

The charity owns 100% of the issued share capital of the subsidiary companies as listed below, whose aims and objectives mirror those of the RAD, with the exception of Royal Academy of Dance S/C Ltda., a company registered in Brazil, and Royal Academy of Dance de Mexico AC, a company registered in Mexico whose issued share capitals are held 100% in trust on behalf of the RAD; and RAD Dancing (Thailand) Co Ltd where the RAD holds 49% of the issued share capital, but has effective control.

The charity also has effective control over a building fund in South Africa which is administered by the Royal Academy of Dance, an association incorporated under s21 of the Republic of South Africa’s Companies Act, and Yayasan Royal Academy of Dance Indonesia, a non-profit foundation, based in Indonesia. The results of these entities are included in the Group’s results as long as the RAD continues to maintain a branch in South Africa, and operations in Indonesia. RAD Dancing (Malaysia) Sdn. Bhd. is a wholly owned subsidiary of Royal Academy of Dance Singapore Pte Ltd.

Annual Report and Financial Statements

53

Notes to the accounts

Year ended 31 July 2022

Notes

otes otes otes
Investments in subsidiaries
Subsidiaries incorporation Country of number Co Registration capital % of issued share Assets Liabilities Net Assets Capital Income Expenditure Surplus / (deficit)
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Royal Brazil CNP-J27907864/0001-48 Held in 129 47 82 - 309 287 22
Academy of trust
Dance S/C
Ltda
Royal Germany HRB 103317 100% 391 260 131 64 439 378 61
Academy
of Dance
gGmbh
Yayasan Indonesia Yayasan No 138 100% 91 178 (87) - 78 59 19
Royal control
Academy
of Dance
Indonesia
Royal Italy TN-0174567 99% 214 110 104 8 487 562 (75)
Academy of
Dance Srl
Royal Mexico RFC RAD Held in 187 48 139 - 191 206 (15)
Academy of 011026DT5 trust
Dance de
Mexico AC
RAD Dancing Malaysia No 282399-X 100% 626 225 401 - 402 302 100
(Malaysia)
Sdn Bhd
Royal Singapore No 02211/1988-M 100% 1,273 501 772 - 796 878 (82)
Academy
of Dance
Singapore
Pte Ltd
Royal South 1990/004233/08 100% 245 148 97 - 310 361 (51)
Academy of Africa control
Dance
Royal Spain CIF No B-59915330 100% 324 122 202 2 464 487 (23)
Academy of
Dance SL
RAD Dancing Thailand 0505554003970 49% 148 46 102 37 168 154 14
(Thailand)
Sdn Bhd
Royal United No 2773495 100% 653 645 8 - 845 545 300
Academy Kingdom
of Dance
Enterprises
Ltd
Balance as at 31 July 2022 4,281 2,330 1,951 111 4,489 4,219 270

Royal Academy of Dance, year ended 31 July 2022

54

Notes to the accounts

Year ended 31 July 2022

Notes
21
Stocks
Finished goods and goods for resale
Balance at 31 July
22 Debtors: amounts falling due within one year
Trade debtors
Amounts due from subsidiaries
Other debtors
Prepayments and accrued income
Balance at 31 July
23 Creditors: amounts falling due within one year
Bank loans
Trade creditors
Amounts owed to subsidiaries
Taxation and social security
Accruals and deferred income
Balance at 31 July		 Group
2022
2021
£’000
£’000
304
336
304
336
Group
2022
2021
£’000
£’000
205
433
-
-
612
452
656
601
1,473
1,486
Group
2022
2021
£’000
£’000
(266)
(163)
(1,042)
(1,017)
-
-
(2,840)
(419)
(3,429)
(4,301)
(7,577)
(5,900)		 Charity
2022
2021
£’000
£’000
153
142
153
142
Charity
2022
2021
£’000
£’000
132
351
1,430
803
513
396
491
448
2,566
1,998
Charity
2022
2021
£’000
£’000
(266)
(163)
(903)
(807)
(384)
(388)
(2,582)
(203)
(2,765)
(3,956)
(6,900)
(5,517)

Bank overdrafts

At 31 July 2022, the Royal Academy of Dance in the United Kingdom had not utilised any of the £700,000 available in the grouped overdraft facility (facility in 2020-21: £700,000). The facility is secured on the freehold property at 188 York Road, London SW11 3JZ. The overdraft facility was renewed for a further twelve months in September 2022.

As at 31 July 2022, Royal Academy of Dance Enterprises Ltd had not utilised any of the £300,000 overdraft facility available. The overdraft facility was renewed for a further year in September 2022.

An overdraft facility of A$400,000 with Westpac, secured on the property at 20 Farrell Avenue, Sydney, was originally made available in March 2012 to facilitate the completion of the building works on the property and to supplement the cyclical nature of the Australian operations cash flow. The facility is continuing.

Movement on deferred income during the year
Balance brought forward
Received in year
Released to income
Balance carried forward		 Group
2022
2021
£’000
£’000
3,228
3,574
3,491
4,891
(4,285)
(5,237)
2,434
3,228		 Charity
2022
2021
£’000
£’000
2,990
2,830
2,959
4,697
(4,059)
(4,537)
1,890
2,990

Annual Report and Financial Statements

55

Notes to the accounts

Year ended 31 July 2022

Notes

24 Creditors: amounts falling due after more than one year
Provision for long-service award
Bank loans
Balance at 31 July		 Group
Charity
2022
2021
2022
2021
£’000
£’000
£’000
£’000
(27)
(30)
(27)
(30)
(2,951)
(3,232)
(2,951)
(3,232)
(2,978)
(3,262)
(2,978)
(3,262)

Bank loans

Bank loans of £2,951,587 (2021: £3,232,126) relate to:

The Royal Academy of Dance in the United Kingdom has two loans:

25 Commitments

Capital commitments

There are £nil (2020-21: £426,000) of capital commitments as at 31 July 2022.

Operating leases

Equipment is leased by Royal Academy of Dance for defined periods. The full cost over the lease period is shown below:

2022 2021
£'000 £'000
Less than 1 year 78,739 34,119
2-5 years 231,075 140,430
Over 5 years 23,163 3,233

Lease payments of £18,916 (2020-21: £19,900) were charged to the consolidated statement of financial activities during the year.

Royal Academy of Dance, year ended 31 July 2022

56

Notes to the accounts

Year ended 31 July 2022

Notes

26 Movement in restricted funds

Type of fund
Restricted
Step into Dance programme
UK
Project
CLIF programme
UK
Project
Benesh Projects
UK
Project
Scholarship / bursary funds
UK
Restricted
_Boys Only!_funds
UK
Restricted
Iris Truscott fund
UK
Restricted
Regional Scholarship funds
UK
Restricted
Jubilee Awards 2012
UK
Restricted
RADiate
UK
Restricted
Christel Addison funds
South Africa
Restricted
Regional Panel fund
South Africa
Restricted
Scholarship funds
Israel
Restricted
New Headquarters fund
UK
Restricted
Total Charity
Building fund
South Africa
Restricted
Total Group
Movement in restricted funds (prior year)
Type of fund
Restricted
Step into Dance programme
UK
Project
CLIF programme
UK
Project
Benesh Projects
UK
Project
Scholarship / bursary funds
UK
Restricted
_Boys Only!_funds
UK
Restricted
Iris Truscott fund
UK
Restricted
Regional Scholarship funds
UK
Restricted
Jubilee Awards 2012
UK
Restricted
RADiate
UK
Restricted
Christel Addison funds
South Africa Restricted
Scholarship funds
Israel
Restricted
New Headquarters fund
UK
Restricted
Total Charity
Building fund
South Africa Restricted
Total Group		 Balance at
1st Aug 2021
Exchange
Movements
Income
Expenditure
Other recognised
gains
Transfer between
funds
Balance at
31st July 2022
£’000
£’000
£’000
£’000
£’000
£’000
£’000
18
-
487
(500)
-
-
5
-
-
-
-
-
-
-
103
-
16
-
-
-
119
536
-
41
(21)
-
-
556
53
-
-
(3)
-
-
50
8
-
11
(9)
-
-
10
74
-
1
(6)
-
-
69
18
-
-
-
-
-
18
14
-
-
-
-
-
14
67
(2)
4
-
-
-
69
-
-
-
-
-
16
16
1
-
-
-
-
-
1
745
-
1,190
-
-
-
1,935
1,637
(2)
1,750
(539)
-
16
2,862
6
-
-
-
-
-
6
1,643
(2)
1,750
(539)
-
16
2,868
Balance at
1st Aug 2020
Exchange
Movements
Income
Expenditure
Other recognised
gains
Transfer between
funds
Balance at
31st July 2021
£’000
£’000
£’000
£’000
£’000
£’000
£’000
(6)
-
310
(286)
-
-
18
(2)
-
-
-
-
2
-
98
-
5
-
-
-
103
569
-
-
(33)
-
-
536
53
-
-
-
-
-
53
31
-
16
(39)
-
-
8
68
-
12
(6)
-
-
74
18
-
-
-
-
-
18
14
-
-
-
-
-
14
69
(2)
-
-
-
-
67
1
-
-
-
-
-
1
-
-
745
-
-
-
745
913
(2)
1,088
(364)
-
2
1,637
6
-
-
-
-
-
6
919
(2)
1,088
(364)
-
2
1,643

26 Movement in restricted funds (prior year)

Annual Report and Financial Statements

57

Notes to the accounts

Year ended 31 July 2022

Notes

Restricted funds

Restricted funds are funds arising out of donations, grants, legacies and awards given or raised for specific purposes. These funds are used for specific projects:

Royal Academy of Dance, year ended 31 July 2022

58

Notes to the accounts

Year ended 31 July 2022

Notes

**27 ** Movement in unrestricted funds
Balance at
1 Aug
2021
Exchange
movements
Income Expenditure
Other
recognised
gains
Transfer
between
funds
Balance
at 31 July
2022
£’000
£’000
£’000
£000
£’000
£’000
£’000
Charity
Designated funds
236
14
5
-
-
-
255
Unrestricted funds
-
91
1,441
(1,415)
185
(16)
286
Fixed asset reserve
19,483
246
14,682
(15,589)
5,576
-
24,398
Total
19,719
351
16,128
(17,004)
5,761
(16)
24,939
Group
Designated funds
236
14
5
-
-
-
255
Unrestricted funds
1,845
91
4,203
(4,163)
-
(16)
1,960
Fixed asset reserve
19,696
246
14,680
(15,588)
5,576
-
24,610
Total
21,777
351
18,888
(19,751)
5,576
(16)
26,825

During the year the designated reserve associated with fixed assets was reviewed and updated to reflect the net book value of fixed assets in total less associated loan finance.

Movement in unrestricted funds (prior year)

Balance at Exchange **Income ** Expenditure Other Transfer Balance
1 Aug movements recognised between 31 July
2020 gains funds 2021
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Charity
Designated funds 288 (3) - (2) - (47) 236
Unrestricted funds 1,715 (58) 14,288 (13,215) - (2,730) -
Fixed asset reserve 16,421 - - - 287 2,775 19,483
Total 18,424 (61) 14,288 (13,217) 287 (2) 19,719
Group
Designated funds 288 (3) - (2) - (47) 236
Unrestricted funds 3,673 (126) 17,607 (16,492) - (2,817) 1,845
Fixed asset reserve 16,547 - - - 287 2,862 19,696
Total 20,508 (129) 17,607 (16,494) 287 (2) 21,777

Annual Report and Financial Statements

59

Notes to the accounts

Year ended 31 July 2022

Notes

Movement in designated funds (Charity and Group)

Balance at Exchange Income Expenditure Transfer Balance
1 Aug movements between at 31 July
2021 funds 2022
£’000 £’000 £’000 £’000 £’000 £’000
Genée Legacy Funds 6 - - - - 6
Challengenée Funds 56 - - - - 56
Social Responsibility Fund 83 7 5 - - 95
Evans Legacy 51 7 - - - 58
Fiona Campbell Legacy 40 - - - - 40
Designated funds* 236 14 5 - - 255

Prior year

Prior year
Balance at Exchange Income Expenditure Transfer Balance
1 Aug movements between at 31 July
2020 funds 2021
£’000 £’000 £’000 £’000 £’000 £’000
Genée Legacy Funds 6 - - - - 6
Challengenée Funds 56 - - - - 56
Social Responsibility Fund 130 - - - (47) 83
Evans Legacy 54 (3) - - - 51
Fiona Campbell Legacy 42 - - - (2) 40
Designated funds* 288 (3) - - (49) 236
28 Analysis of group net assets between funds
Tangible and intangible fixed assets
Investments
Current assets
Current liabilities
Amounts falling due after more than one year
Total net assets		 2022
Unrestricted
funds
£’000
Restricted
funds
£’000
Total
funds
£’000
27,523
-
27,523
149
16
165
9,708
2,852
12,560
(7,577)
-
(7,577)
(2,978)
-
(2,978)
26,825
2,868
29,693
Analysis of group net assets between funds
Tangible and intangible fixed assets
Investments
Current assets
Current liabilities
Amounts falling due after more than one year
Total net assets		 2021
Unrestricted
funds
£’000
Restricted
funds
£’000
Total
funds
£’000
19,696
-
19,696
136
14
150
11,107
1,629
12,736
(5,900)
-
(5,900)
(3,262)
-
(3,262)
21,777
1,643
23,420

Royal Academy of Dance, year ended 31 July 2022

60

Group

The results of the eleven subsidiary companies below are consolidated with the results of the charity (Branch Offices and UK Group) to form the group:

Subsidiary companies

Germany Royal Academy of Dance gGmbh, Waldenserstrasse 2-4, 10551 Berlin
Indonesia Yayasan RAD Indonesia, Jl. Angur III / no:1 Cipete, Jakarta Selatan 12410
Italy Royal Academy of Dance Srl., Via Vannetti 12, 38122 Trento
Malaysia RAD Dancing (Malaysia) Sdn Bhd., No 16F 1 Sentral, Jalan Stesen, Sentral,
Kuala Lumpur 50470
Mexico & Central America Royal Academy of Dance de Mexico AC, Amates 18 Fracc Alconfores, San Mateo,
Naucalpan CP 53240, Mexico
Singapore Royal Academy of Dance Singapore Pte Ltd., Farrer Road Post Office, PO Box 106,
Singapore 912804
South Africa Royal Academy of Dance s21 Company, PO Box 200, Bramley 2018, Johannesburg
South America Royal Academy of Dance Brasil Ltda, Av. Angelica, 566/86, Santa Cecília, 01228 000
São Paulo-SP, Brasil
Spain, Andorra & Gibraltar Royal Academy of Dance SL., Ventura i Gassol, 3, 5è-3a, 43203 Reus, Tarragona, Spain
Thailand RAD Dancing (Thailand) Co Ltd, 121/12, Moo 10, Chiangmai-Hangdong Road,
Tambon: Pae Dad, Ampur: Muang, Chiangmai 50100
United Kingdom Royal Academy of Dance Enterprises Ltd, 188 York Road, London SW11 3JZ.

Annual Report and Financial Statements

61

Charity

The results of the eight branch offices below are consolidated with the results of the UK Group to form the Charity:

Branch offices

Australia 20 Farrell Avenue, Darlinghurst, NSW 2010 Canada Suite 601, 1210 Sheppard Avenue East, Suite 601, Toronto, Ontario M2K 1E3 Israel Hadar Street 491, Neve Yamin Japan Trad Mejiro B2F, 2-39-1 Mejiro, Toshima-Ku, Tokyo 171-0031 New Zealand Level 11 49 Boulcott Street, Wellington 6011 Portugal Rua 4 Infantaria 86, 138 C/V Esq, 1350-241 Lisboa Southern Africa & Mauritius PO Box 200, Bramley 2018, Johannesburg, South Africa United States 2625 S Greeley Street Suit 360, Milwaukee, WI 53207.

UK Group

The results of the eleven representative offices below are included in the results of the UK entity to form the UK Group:

Representative offices

Caribbean PO Box 1433, 8 Rockhampton Drive, Kingston 8, Jamaica
China 2nd Floor Tower 2, Dong Hai Commercial Building, 588 Yan An Dong Lui, Shanghai
Cyprus 71 Irinis Street, 3041 Limassol
Greece British Council, 17 Kolonaki Square, Athens 10673
Hong Kong Hong Kong Examination and Assessment Authority, 17 Tseuk Luk Street, San Po Kong,
Kowloon
Ireland Egool, Kilmovee, Ballaghaderreen, County Mayo, F45 PK59, Ireland
Malta c/o 29/10 Sir Luigi Camilleri Street, Sliema SLM1281
Scandinavia Smedstuveien 25, 7040 Trondheim, Norway
South Asia 40a Lake Gardens, off Lake Drive, Rajagiriya 10100, Sri Lanka
South Korea 1703 Artnouveau Palace, 258 Sukchonhosu-ro, Songpa Gu, Seoul 05624
Taiwan 5f, No 122, Sect 7 Chung Shan N. Road, Taipei 11151.

Royal Academy of Dance, year ended 31 July 2022

62

Advisers

Advisers
UK bank HSBC Bank Plc 31 Holborn Circus, London EC1N 2HR
UK law firm Fieldfisher LLP Riverbank House, 2 Swan Lane, London
EC4R 3TT
UK and Group auditor Crowe U.K. LLP 55 Ludgate Hill, London EC4M 7JW
Crowe U.K. LLP is the auditor of the consolidated group. Where not audited by Crowe U.K. LLP, branches and
subsidiaries are audited or reviewed by the firms shown below:
Australia Crowe Australia Level 15, 1 O’Connell Street, Sydney, NSW 2000
Brazil Liberty Assessoria Contabil S/S Ltda. Rua Mituto Mizumoto, 56, Liberdade,
01513 040 São Paulo-SP
Canada Grant Thornton LLP 15 Allstate Parkway, Suite 200, Markham,
Ontario L3R 5B4
Indonesia KAP Ekna Masni, Bustaman & Rekan Sentra Kramat B-18, JL Kramat Raya 7-9,
Jakarta 10450
Israel Hannan Gabriel CPA 8 Hayod-Chef Street, Hod Hasharon 45200
Portugal CERB Beloura Office Park, Rua do Centro
Empresarial, Edifício EE06 – Escritório 12,
Quinta da Beloura, 2710-444 Sintra
Malaysia Crowe Malaysia PLT Level 16, Tower C, Megan Avenue II, 12
Jalan Yap Kwan Seng, 50450 Kuala Lumpur,
Malaysia
Singapore Crowe Singapore 9 Raffles Place, #19-20 Republic Plaza Tower
2, Singapore 048619
Spain Asesoria Berzosa Donoso Cotres 85, 28015 Madrid
Thailand KT&R Business Consultant Co Ltd 59/1 Sukhumvit 64 Bangchak, Prakanong,
Bangkok 10260
Southern Africa & Mauritius Collins Walt Inc. 2nd Floor, The Terrace Building, 3 Easton
Terrace, New Redruth, 1449 Alberton,
South Africa.

Annual Report and Financial Statements

63

Royal Academy of Dance, year ended 31 July 2022

Photo: Siobhan Hennessy 64

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Cover photo: Siobhan Hennessy