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ea a . ect ee aie a aig rR tac) ON eae eeBE Oa eraee ee ee Annual Report and Financial Statements

Report of the Chair of the Board of Trustees	4
Chief Executive’s Report	5
Vice Patron, President and Officers	6
Report of the Trustees	7
Statement of Corporate Governance	8
Statement of Internal Control & Risk Management	9
Principal Activities	10
Public benefit	10
Mission and Vision	10
Highlights during the year to 31 July 2023	11
Strategic objectives and achievements	12
RAD Corporate Structure	16
Corporate Governance	17
Financial review	26
Statement of the trustees’ responsibilities	31
Independent auditor’s report	32
Group consolidated statement of financial activities	35
Group and charity balance sheets	36
Group cash flow statement	37
Accounting policies	39
Group	64
Charity	65
Bankers	66
Advisers	66

Annual Report and Financial Statements, year ended 31 July 2023

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 2023.

This is my first Annual Report as the new Chair of the RAD and I would like to say what a joy and a privilege it is to be a part of an organisation that does so much to improve wellbeing, to nurture talent and to serve our diverse dance communities all over the globe.

Early in the year under review, we reached the end of our successful capital campaign that secured funds to support a move into our impressive new global headquarters and many of our activities are now operating at prepandemic levels.

On behalf of my fellow trustees, I would like to offer our thanks and gratitude to our global network of colleagues for their unwavering loyalty to the RAD and for their enthusiasm and passion in fulfilling our mission of teaching the world to dance

In April, we hosted a successful hybrid Members’ Day event at our headquarters with over 600 attendees from around the world. We have also held similarly well-attended events welcoming our local community into our home of dance. In contrast to last year, when we had to hold a virtual Awards Day, in September we celebrated the achievements of our students at an in-person event with over 300 graduates from around the world in attendance at the ceremony.

For those just starting out on their dance journey, I am pleased to report that, once again, every one of our GCSE and A Level students achieved a pass in their exams. This is something that makes us

all delighted and proud in equal measure and is a testament to the hard work of teachers and students alike.

During the year, our RADiate programme for children with special educational needs and disabilities expanded into even more schools. In addition, the RAD now has 115 secondary schools across London and Essex taking part in our Step into Dance programme, run in partnership with the Jack Petchey Foundation.

It has not all been plain sailing. The RAD globally has faced numerous challenges and hurdles, which our dedicated and hard-working staff and management have overcome with typical resilience and dedication. On behalf of my fellow trustees, I would like to offer our thanks and gratitude to our global network of colleagues for their unwavering loyalty to the RAD and for their enthusiasm and passion in fulfilling our mission of teaching the world to dance.

I would also like to express the RAD’s appreciation to all our members, supporters, sponsors, donors and friends for their continuing help and support. Their contributions and generosity, from grants and donations through to gifts-in-kind of IT equipment, allow us to introduce dance into ever more communities, making a tangible difference to so many people’s lives. We will continue to extend our global reach with increasing vigour and purpose.

These are exciting times for the wider development of dance and for the RAD. We intend to remain at the forefront of spreading the message of dance across the world. I look forward to reporting on our progress over the coming years.

Stephen Moss CBE

Chair, Board of Trustees

Royal Academy of Dance

Chief Executive’s Report

Looking back on the financial year 20222023, we have continued seeking opportunities in new markets and technologies to deliver our mission.

The highlights of the year, which are described later in this report, show that we have continued to innovate and to develop our offering while always maintaining the high standards for which we are renowned. We have only been able to achieve this through the tireless dedication and commitment of our staff around the world and the unswerving loyalty of our members. I thank them all.

The highlights of the year show that we have continued to innovate and to develop our offering while always maintaining the high standards for which we are renowned

A key focus during the period has been developing our safeguarding protocols. We have taken further steps to raise awareness of issues among our staff and membership, including introducing mandatory safeguarding requirements for all teachers as part of their professional membership. These include the requirement for regular criminal record checks and annual workshops as part of members’ continuing professional development (CPD).

This was one of a slew of other improvements and benefits for our members, including our Member Event Series, headquarters tours, Members’ Days and the new Céline Gittens Dance Scholarship, which allows teachers to support new students in their community.

Our new global headquarters has seen its popularity grow as both a venue and a community hub. We have hosted several high-profile

open days and member events as well as accommodating over 800 students taking part in the RAD’s various summer activities. Since the new building opened, we have focused on building partnerships with our local and international communities to welcome increasingly diverse audiences.

New technologies have helped to raise the profile of our work. In 2022, our ‘Who Inspires You to Dance?’ TikTok video reached over one million views and our podcast ‘Why Dance Matters’ ranked in the top quartile of the world’s most popular podcasts.

Globally, our teachers supervised over 220,000 exams, an increase of 16% over the previous 12 month period. The RAD has been at the forefront of the development of filmed submissions to provide greater flexibility to students not able to travel to examinations. During the year, these accounted for around a third of the examinations.

Most recently, we launched a worldwide collaboration with Rambert Grades to offer courses and training in contemporary dance. This is part of our commitment to offer dance in other genres besides our traditional focus on ballet. The successful Margot Fonteyn International Ballet Competition held in London in October 2023 will be featured in my report next year.

Once again, I must pay tribute to our staff around the world for their continuing dedication, commitment and hard work and their willingness to adapt to a changing world. They continue to deliver to the highest standards and ensure that we maintain the RAD’s position as a world leader in dance education for all and as a champion of wellbeing and inclusion.

Tim Arthur Chief Executive

Annual Report and Financial Statements, year ended 31 July 2023

Vice Patron, President and Officers

Vice Patron

Her Majesty The Queen

President

Dame Darcey Bussell DBE

Trustees

Stephen Moss CBE (Chair of the Board of Trustees, appointed September 2023)

Ida Levine BA Juris Doctor JD (appointed Deputy Chair of the Board of Trustees, September 2022) Amy Giancarlo BA (Hons) RBS DDT LRAD ARAD RAD RTS Andrew Mcintee BA (Hons) Bus Econ (resigned May 2023)

Chi Cao PDTD David Nixon OBE Deborah Cornelius MA (Cantab) Esther Chesterman LLM LLB Dip Ed Hilary Clark ARAD (dip PDTC) RTS (resigned May 2023) Imogen Knight ARAD BA (Hons) DDE, RAD TD,

RAD RTS

James Cane FCA

Joshua Tuifua PDTD (Dist), RAD RTS Matthew Paluch MA, PDTD (Dist) RBS Dip. Penny Parks RAD RTS (resigned April 2023) Professor Peter Flew Associate Pro-Vice Chancellor (Academic Portfolio Development), University of Roehampton Rachel Jackson-Weingärtner MA, RAD TDIP RTS, SAC Dip, LISTD Dip Stephen Sacks Vikki Allport RAD RTS T.DIP (Dist)

Coopted Trustees

Catherine Quinn BA (Hons), MA, MBA (appointed September 2023) Jane Karczewski

Executive Board

Chief Executive Chief Operating Officer Artistic Director Director of Education Director of Development

Director of Marketing and Communications

Director of Membership Director of Examinations

Director of Finance

Associate Director of Marketing and Communications

Tim Arthur

Ash Sharma

Gerard Charles (resigned September 2023)

Dr Michelle Groves EdD MA BSc (Hons) BPhil (Hons) Katy Shaw MCIOF (appointed November 2022) Esther McLaughlin MinstF (resigned October 2022) Melanie Murphy Dip IPR MICPR (resigned November 2022)

Penny Cotton (appointed January 2023)

Mary Keene (appointed November 2023) James Stockdale MioD (resigned October 2023)

Renu Randhawa ACA

Susi Pink DipM (appointed January 2023)

Vice Presidents

David Bintley CBE Li Cunxin AO Dame Beryl Grey (died December 2022) Dame Monica Mason DBE David McAllister AC Wayne Sleep OBE Sir Peter Wright CBE DMus DLitt FBSM

Advisory Council

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

Royal Academy of Dance

Report of the Trustees

The Trustees of the Royal Academy of Dance (RAD or ‘The Academy’) present their report and audited financial statements for the year ended 31 July 2023. 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 2023. The entities comprising the group and the charity are shown on page 16.

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 percent 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 is 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.

Annual Report and Financial Statements, year ended 31 July 2023

Statement of Corporate Governance

Governing documents

The Academy is governed by its Supplemental Charter and Bye-laws, last amended on 10 July 2019.

Governing body

The Academy’s Board of Trustees (‘The board’) is the statutory governing board of the legal entity.

The board is legally responsible for the overall management and control of the Academy and, as such, has oversight and management of the strategic, financial and operational areas of the RAD’s activities and all other aspects of the Academy’s existence save for responsibilities delegated to the Academic Board in respect of the regulating and directing of the academic work of the RAD, including teaching (undergraduate and postgraduate degrees as well as degree apprenticeship programmes) and research.

The board has ownership, oversight and management of the regulatory responsibilities and relationships of the Academy. It meets at least four times a year.

In accordance with the Supplemental Charter and Bye-laws, the board has the power to delegate responsibility (but not accountability) to committees, directors and the management of the RAD.

The board has established certain committees to carry out its responsibilities. The number of members of any such committee and the terms on which they hold and vacate office shall be determined by the board. Reports (at least annually) from these committees shall be received and considered by the board where appropriate.

See the ‘Organisational management’ section below.

Recruitment of trustees and training of trustees

The board shall consist of such trustees, with such qualifications and appointed or elected in such manner and shall hold office for such periods and on such terms as may be prescribed by the Bye-Laws.

The training of the trustees depends on each individual’s area of expertise, but common areas of training are carried out as part of the board meetings.

Organisational management

The board delegates responsibility for Academy management onto the following subcommittees:

y Finance, Audit and Risk
y Examinations and Regulatory
y Artistic
y Education
y Fundraising and Development
y Global Membership and Marketing
y Royal Academy of Dance Enterprises Ltd (RADE) Enterprises

This structure ensures regularity and propriety in the use of public and donor funding.

Consideration of the financial position of the Academy is a standing item for both the Board of Trustees and the executive committee.

Royal Academy of Dance

Statement of Internal Control & Risk Management

The trustees are responsible for the system of internal control operating within the Academy and for reviewing its effectiveness as well as ensuring they are linked to achieving its objectives.

The trustees identify areas of improvement in the system of internal control based on reports and internal reviews. The trustees approach this responsibility from the perspective of discharging their duties, as specified in the ‘Regulatory framework for higher education in England’ published by the OfS in February 2018, also as specified by the Charity Commission for England and Wales.

The risk-management strategy is designed to support this mission by assessing and managing the risks to the Academy of achieving its stated mission and to ensure that it is also protecting stakeholders to which it has responsibilities, such as students, staff, funding bodies, partners, suppliers and the general public. This strategy forms part of the Academy’s control and governance structure and is designed to give summary guidance for those different parts of the Academy that are responsible for managing risk and for ensuring that their decisions are implemented.

The Academy does not have an internal audit function and relies on external audits to review the controls in operations.

The risk management objectives of the Academy are to:

y Integrate an awareness of managed risk-taking and effective risk management into the culture of the Academy
y Manage risk in accordance with good practice
y Embed risk management within strategic and operational management processes
y Consider legal compliance as a minimum standard
y Anticipate and respond to changing economic, social, environmental and legislative requirements
y Prevent injury and damage and reduce the cost of risk

These objectives will be achieved by:

y Maintaining and updating a risk register which details those risks which, in the view of senior management and the board, pose the greatest challenge to the achievement of the Academy’s mission and of its continuing function
y Assessing the likelihood of these risks occurring and the likely impact of an occurrence
y Putting in place arrangements to manage and monitor risk
y Maintaining effective communication with and the active involvement of staff
y Preparing contingency plans in areas where there is a potential for an occurrence having a negative effect
y Monitoring and reviewing arrangements on an ongoing basis
y Insuring against risk where this is deemed to be cost-effective

The system of internal financial control is based on a framework of regular management information, financial regulations, administrative procedures (including segregation of duties), management supervision, a system of delegation and accountability, and independent scrutiny. In particular, the system includes:

y Comprehensive budget setting and monitoring systems
y Regular reviews of periodic financial reports which indicate financial performance against budgets and forecasts
y Access by all finance staff and appropriate departmental staff to systems providing a suite of enquiries and reports to facilitate effective financial management on an ongoing basis
y Clearly defined capital expenditure guidelines
y Scrutiny by trustees, OfS, other inspectorates, external auditors and other stakeholders

The trustees have ultimate responsibility for the total risk exposure of the Academy by:

y Setting the tone and influence of the culture of risk management across the Academy
y Determining the extent to which the Academy is ‘risk taking’ or ‘risk averse’ as a whole and setting the Academy’s ‘risk appetite’
y Approving major decisions affecting the Academy’s risk profile or exposure
y Determining what types of risk are acceptable/not acceptable, monitoring significant risks and control improvements to mitigate risks
y Twice-yearly review of the Academy’s approach to risk management and approving changes or improvements to key elements of the process and procedures
y Establishing, maintaining, and reviewing controls for monitoring risks
y Having particular focus on the financial risks that could impact the Academy and its provision of worldclass dance education and training

The Chief Executive will report to the trustees on a bi-annual basis as to the approach to risk faced by the Academy, and the management of it, and in each, the trustee meeting will report on any incidents and/ or changes to the level of risk faced by the Academy and the approach to managing those changed circumstances. The framework for these discussions will be the risk register.

Annual Report and Financial Statements, year ended 31 July 2023

Principal Activities

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

y A registration organisation for dance teachers, providing opportunities for the education and training of young people and adults in dance, and employment opportunities for dance teachers
y A higher education provider, offering programmes of study and associated qualifications for aspiring dance teachers
y An awarding organisation, devising and administering a portfolio of examinations in dance which form part of the assessment process of

courses of study, delivered by teachers, leading to proficiency in dance at a high level

y The owner of Benesh Movement Notation, and a provider of programmes of study and qualifications for dance notators
y An organisation that delivers dance projects for specifically targeted groups, as well as offering a global programme of activities, events, competitions, awards, bursaries, and scholarships aimed at engaging local communities in the world of dance

Our services can be seen at

www.royalacademyofdance.org and through local websites internationally.

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,

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

y Providing facilities for dance, dance education and training
y 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)
y Setting and conducting exams in dance and the teaching of dance
y Educating, training, assessing, registering, licensing and chartering teachers of dance who meet standards determined by the board from time to time
y 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:

y The voice of expertise – globally recognised as a leader in dance education and training
y Flourishing – financially healthy and agile with a diversified income to support our ambitions
y Welcoming – with a belief in the power of dance to transform lives, and the value of a diverse workforce and community
y In step – working collaboratively to deliver our vision
y Choreographed to deliver – with the right people and processes to realise our objectives.

Royal Academy of Dance

Highlights during the year to 31 July 2023

100% 115 of our A Level and GCSE students achieved a pass or above for the academic year Over We conducted 800 220,000 students took part in exams worldwide, our summer activites

secondary schools across London and Essex took part in the Step into Dance programme

220,000

exams worldwide, of which 36% were filmed submissions

Our awards ceremony in September 2022 was attended by 313 graduands

Our ‘Who inspires you to dance?’ TikTok video reached

1,000,000 and

245,000 likes

According to stats from Buzzsprout, our ‘Why Dance Matters’ podcast was listed as the UK’s top dance podcast and is in the top 25%

This year’s RADiate has been able to facilitate

5,058 participations by children from eight primary schools over a 33-week period

of podcasts in the world

Annual Report and Financial Statements, year ended 31 July 2023

Strategic Objectives and Achievements

Our strategic plan for the year from August 2022 to July 2023 had three objectives. Two of these (SO1 and SO2) focused on how we operated and ensured financial stability, and the third (SO3) focused 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 resources to maximise impact:

Achievements and Performance

Artistic

y In June 2023, we launched a worldwide collaboration with Rambert Grades, which offers a syllabus in contemporary dance. This also gives RAD members Rambert Grades annual membership
y A cultivation dinner was held for Goldman Sachs in September 2022 to attract philanthropic sponsorship. We curated and introduced a performance from Royal Ballet principals, Steven McRae and Anna Rose O’Sullivan, as well as a Q&A with Dame Darcey Bussell. There were also performances from RAD Dance School students and schools from Step into Dance
y Development started on a Silver Swans framework and resources, to be launched in early 2024 along with an early year’s framework to be piloted in 2024-2025

Examinations

y The recently designed marking app used by our examiners has considerably improved the turnaround time for issuing exams results to students. We expect to make further enhancements in the current year
y We developed checklists for use by teachers that provide guidance on how to score filmed exam submissions
y We are developing the RADius database to improve regulatory compliance and other processes, including the issuing of exam certificates

Faculty of Education

y Our graduation awards ceremony in September 2022 was attended by 313 graduands out of a total of 718 students who completed the various programmes
y RAD arranged seven focus groups drawn from national offices to pre-validate the new Certificate in Dance Teaching (Ballet). These were followed by 11 information webinars attended by nearly 1,000 people
y The new Professional Dancers’ Graduate Teaching Diploma was validated in November 2022. This diploma combines the best features of the Professional Dancers’ Teaching Diploma and the Professional Dancers’ Postgraduate Teaching Certificate and will comply with the regulatory requirements of a Level 6 qualification.
y A new and extended Pathways to RTS portfolio was approved in November 2022, to extend eligibility for Registered Teacher status
y The Assistant Teacher Award was launched, with the first Approved Tutor Training and Induction taking place in May 2023
y Development of digital platforms such as Moodle, Turnitin and Padlet continued to improve efficiency and student learning experiences
y ‘Outstanding’ External Examiner reports were received for all Faculty of Education programmes
y We delivered the second ‘Imagining the Future of Dance Education’ symposium with presentations from Faculty of Education Early Career Researcher graduates
y We joined Data Future, a new statutory requirement for all providers of higher education
y Student wellbeing remains a priority. We appointed a Student Support and Welfare Officer and have seen good uptake of Talk Campus, a 24/7 student-support app available in 26 languages. Recruitment to Faculty of Education onsite programmes remained difficult as a result of a competitive market, cost-of-living concerns and limited bursary support
y We were not successful in our re-accreditation application for delivery of PGCE provision (along with over 200 other Accredited Providers of Initial Teacher Education). 2023-2024 will see the last delivery of the PGCE: Dance Teaching (with QTS). We will consider other options to remain in compulsory education teacher training

Royal Academy of Dance

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

Achievements and Performance

Fundraising and Development

y The capital campaign to support the move to the new global headquarters closed in the year with generous gifts from The Dorfman Foundation and the Kusuma Trust
y The priority for fundraising activity switched to securing revenue donations to fund our cultural engagement plans and continuing work in communities
y We launched a new Patrons’ Circle in autumn 2022
y We established a syndicate of donors and trusts to fund The Margot Fonteyn International Ballet Competition, held in London in October 2023
y We were very fortunate to secure a number of major grants and donations during the year, including an investment from Mastercard to transform our IT equipment, a grant from The Linbury Trust to secure The Dancing Times photographic collection for the RAD, and the first year of multi-year funding from Paul Hamlyn Foundation

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

Achievements and Performance

Examinations

y We worked with approximately 230 examiners worldwide to conduct exams, including working on recruitment, training, standardisation and engagement
y Examiners have been travelling at pre-pandemic levels, though we have aimed to minimise our carbon footprint by reducing examiner and staff travel
y In December 2022, we submitted the RAD Ofqual Statement of Compliance, showing fulfilment of the regulatory framework demands
y RAD again demonstrated full compliance with SQA’s Principles of Regulation
y The Safeguarding Manager used feedback from the work the NSPCC completed to improve the RAD’s safeguarding guidance and operations

Membership

y The number of registered teachers increased from 7,934 to 8,126. Other members increased from 3,938 to 3,961
y We introduced mandatory safeguarding
requirements for teachers as part of their professional membership. They must obtain a criminal record check at least every three years, declare criminal convictions, and take part in annual safeguarding as part of their CPD. New and reinstating applicants must also provide a copy of their curriculum vitae
y In September 2022 we launched the Member Event Series, including online member welcome events, in-person tours of RAD headquarters and a series of online/hybrid events divided into the three themes of Connect and Inspire, Inform and Educate, and Entertain and Delight
y We organised a hybrid Members’ Day with over 600 attendees from 49 countries
y In April 2023, the RAD held its 86th AGM, a hybrid event allowing 117 members to join us from around the world
y We introduced an offer qualifying all RTS members to receive a 20% discount on professional Benesh membership. Similarly, professional Benesh members benefit from a 20% discount on RAD RTS membership
y At the year-end, there were 12,087 active members, a small increase on the previous year. Although we recruited 1,182 new members, 1,005 members gave up their membership for a variety of reasons. We continue to develop our products to improve member retention
y In May 2023, we launched the Céline Gittens Dance Scholarship, generously supported by Gallagher, the insurance company, to provide funds to support a UK RAD Registered Teacher to introduce new students into their dance community. We received six applications, and the scholarship was awarded following a panel discussion
y In the year to 31 July 2023, 404 students from the Faculty of Education graduated. Of these, 43% have become members, and of these, 98% have become

Annual Report and Financial Statements, year ended 31 July 2023

RAD Registered Teachers. The average graduate conversion rate for the wider membership sector is around 20%, which we are seeking to increase by improving our offer

Library & Archive

y The Library & Archive received 4,443 visitors in the year, surpassing the number of annual visitors before the pandemic
y Funded by the Benesh Foundation, the Benesh Movement Notation Score collection was digitally scanned. Video recordings of off-air broadcasts and those previously in obsolete formats are now available on request for visitors to view within the Library & Archive
y We curated a series of displays showcasing selected archive collections and demonstrating our commitment to preserving UK dance heritage to support events for donors and patrons
y We published a new collections-development policy for the archive to provide guidance for stakeholders and donors on suitable material and acquisition procedures
y We started a cataloguing project to improve access to the collection. The RAD acquired another significant collection of photographs and press cuttings from the estate of the late Dame Beryl Grey, one of the RAD’s vice-presidents
y We have postponed the introduction of an upgraded central storage system to allow digital material (AV files, databases and images) to be viewed by visitors pending the roll-out of our improved IT systems
y In consultation with external conservators, we designed a response plan for the Library & Archive to prioritise which items to salvage in the event of an emergency. We also drew up an integrated cleaning and pest-management strategy

Learning and Participation

Our London summer activities included:

y Two weeks of Junior Summer School and Senior Summer School,
y An Intensive Syllabus Course,
y Children’s Summer Classes, two Adult Summer Courses featuring Ballet and Pilates, and Contemporary Dance and Yoga in partnership with The Place,
y Adult Repertoire Workshop and Adult Intensive Repertoire Weekend,
y Two Silver Swans Summer Courses.

and we were delighted to see many international students returning

y We held a successful RAD Dance Challenge event in autumn 2022, alongside The Bedells Bursary
y An expanded Exploring Repertoire event took place in autumn 2022. Over 200 participants across all ages took part and saw performances from English National Ballet School students studying on their pre-professional dance programme and RAD Faculty of Education students. We held a further instalment in spring 2023, welcoming participants from around the UK
y Our Boys Only! partnerships with Trinity Laban in autumn and The Place in the spring reached 70 students aged eight to 15
y 40 Silver Swans joined our Easter Course. We want to expand with a regional weekend offer in 2024
y Our A Level and GCSE students achieved a 100% pass rate for the 2022-2023 academic year. Students achieved the following percentage of grades:

A Level		GCSE
Grade		Grade
A*	–	9	12.5%
A	50%	8	–
B	50%	7	25%
C	–	6	12.5%
		5	37.5%
		4	12.5%

y 75% of this year’s A Level candidates will be going on to further Higher Education from September 2023, with 83% of those students planning to study Dance. The remaining students have opted to take a gap year to pursue further study in September 2024.

Dance School

y Increased overall enrolment saw an average class capacity of 80% with just under 1,500 students enrolled - nearly 500 of whom take multiple classes

Step into Dance

y 115 secondary schools across London and Essex took part in the Step into Dance programme, reaching 3,374 young people. We grew a cohort of 22 Ambassadors, 34 Company Dancers and five Step into Dance Leaders, and hosted a number of successful events
y These events saw over 800 students aged from four to 83 take part. Compared to 2021/2022, numbers were up as we were able to run a fuller schedule

Royal Academy of Dance

RADiate

y This year’s RADiate has been able to facilitate 5,058 participations by children from eight primary schools, a mix of mainstream and specialist, across London over a 33-week period, in weekly inclusive dance and movement sessions delivered by specialist dance artists

Marketing and Communications

y In November 2022, Mikhail Baryshnikov received the Queen EIizabeth II Coronation Award from Her Majesty The Queen. This press campaign garnered 370 pieces of coverage across the UK and internationally with highlights in The Guardian, The Evening Standard and Vanity Fair
y In August 2022, one of our TikTok videos went viral, reaching over one million views and 245,000 likes. The caption asked audiences ‘Who inspires you to dance?’ and showed young dancers watching older dancers through one of our studio windows
y The Fonteyn microsite launched in January 2023 and by September 2023 had nearly 8,000 views by nearly 4,000 unique users. All traffic has been organic
y In March 2023, our ‘Why Dance Matters’ podcast was listed as the UK’s top dance podcast. Currently, it is placed in the top 25% of podcasts in the world. The podcast has also surpassed 22,000 listeners
y Silver Swans came to the forefront of the news because Her Majesty The Queen is a Silver Swan, as is our ambassador Angela Rippon, who reached the Blackpool week of Strictly Come Dancing 2023

Continuing Professional Development (CPD)

y CPD partnered with Child Poverty Action Group to offer a free webinar to highlight the reality of child poverty in the UK and its impact on opportunities to take part in music, arts, sports and dance. 61 teachers attended activities focusing on wellbeing as part of Finding Your Balance: Nurturing Self and Others, a two-day online event
y 80 teachers took part in activities focusing on inclusive dance as part of Dance for All, a three-day event in Salford, UK and online
y June 2023 saw the first in a series of Discovering the Karsavina Syllabus events

Annual Report and Financial Statements, year ended 31 July 2023

RAD Corporate Structure

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.

----- Start of picture text -----
RAD Singapore
RAD gGmbH Yayasan RAD RAS Sri
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
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
----- End of picture text -----

The results of the representative offices are included in the results of the UK to form the UK Group.

Royal Academy of Dance

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 seven separate subcommittees.

President and Vice Presidents

We currently have six elected vice presidents. They do not have to 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 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

y The board comprises a maximum of 20 members, of whom ten are Full Members of the RAD (List A) and ten, including the chair, are List B trustees. List B trustees, who may or may not be Full Members, have been recommended by the board as persons likely to bring skills or experience in areas other than dance or education
y 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 re-appointed for two further consecutive terms in accordance with clauses 33 to 38 of the bye-laws
y Individuals may be co-opted by the trustees to fill vacancies arising during the year
y The board’s role and responsibilities are set out in formal Terms of Reference and Standing Orders. There are currently 15 elected trustees on the board, and in addition, co-opted members serve on each of the subcommittees

List A Trustees

Hilary Clark ARAD (dip PDTC) RTS (resigned May 2023) Imogen Knight ARAD BA (Hons) DDE, RAD TD, RAD RTS Amy Giancarlo BA (Hons) RBS DDT LRAD ARAD RAD RTS

Chi Cao PDTD

Vikki Allport RAD RTS T.DIP (Dist) Joshua Tuifua PDTD (Dist), RAD RTS Matthew Paluch MA, PDTD (Dist), RBS Dip Rachel Jackson-Weingärtner MA, RAD TDIP RTS, SAC Dip, LISTD Dip Penny Parks RAD RTS (resigned April 2023)

List B Trustees

Stephen Moss CBE

(Chair, appointed September 2023) Ida Levine BA Juris Doctor JD (Deputy chair) James Cane FCA

Professor Peter Flew Associate Pro-Vice Chancellor (Academic Portfolio Development), University of Roehampton David Nixon OBE Esther Chesterman LLM LLB Dip Ed Deborah Cornelius MA (Cantab) Stephen Sacks

Guy Perricone (resigned December 2022) Andrew McIntee BA (Hons) Bus Econ (resigned May 2023)

Co-opted Trustees

Catherine Quinn BA (Hons), MA, MBA (appointed September 2023) Jane Karczewski (appointed September 2023)

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 members of the executive board.

Annual Report and Financial Statements, year ended 31 July 2023

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 four 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.

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.

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.

Board subcommittees

The board operates seven 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 and unscheduled meetings, and papers are made available to all members and those in attendance. The Chairman is an ex-officio member of all subcommittees.

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, Audit and Risk subcommittee also advises the board of trustees on all financial matters and considers the management and financial accounts, budgets, general salaries policy, 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. It holds five scheduled meetings a year.

Trustee members

James Cane (Chair) Stephen Moss Ida Levine Amy Giancarlo

Co-opted members

Michelle McGrath Sandra McAlister Catherine Quinn

Directors

Chief Operating Officer Director of Finance

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 govern 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 RAD’s 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

Finance, Audit and Risk subcommittee

The Finance, Audit and Risk 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.

Esther Chesterman (Chair)

Co-opted members

Edith Devoy Michael Smith Brenda Soar Tim Arnold Louise Norman Barbara Amponsa-Abedi

Royal Academy of Dance

Director

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 affect 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 limitedtime working groups with members outside 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 (resigned February 2023) Penny Parks David Nixon Vikki Allport (appointed September 2022) Joshua Tuifua (appointed September 2023)

Co-opted members

Amanda Eyles Wade Lewin Vidya Patel Kylie Ann Aliferis (appointed September 2022) Ana Maria Campos (appointed September 2022) Anuschka Roes (appointed September 2022) David Steele (appointed September 2022)

Director

Artistic Director

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 CounterTerrorism and Security Act 2015.

Trustee members

Professor Peter Flew Hilary Clark Amy Giancarlo Rachel Jackson-Weingärtner

Co-opted members

Prue Huddleston, Professor Emeritus at the Centre of Education Studies, University of Warwick

Professor Ting Tina Chen, Chief Representative, RAD China

Shelley Yacopetti, Education and Engagement Manager for FoE/Australia, RAD

Dr Anne Chappell, Head of Department, Reader in Education (Brunel University of London)

Maria Clutterbuck, Partnership Quality Manager, University of Bath

Dr Janet Rose, Principal, Norland College, Bath

Fiona Sheehan, RAD Examiner, Principal (Mayhew School of Dance and Performing Arts)

Dr Joanne Cliffe, Senior Lecturer, University of Birmingham

Sophie Coster, Student Representative (DDTS)

Naomi Wallis, Student Representative (MAE)

Paula Scales, Tutor, Burnley Dance Centre

Director

Director of Education

Global Membership and Marketing subcommittee

The Global Membership and Marketing subcommittee advises and supports the director of membership and associate director of marketing and communications on matters pertaining to membership and marketing. This includes focussing on strategies to attract and retain members, as well as promoting the organisation and its members through various marketing channels. This can involve developing the global membership scheme and enhancing the visibility and engagement of RAD within the dance community and beyond. The subcommittee also seeks to ensure that, as a membership organisation, the RAD upholds 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) Imogen Knight Rachel Jackson-Weingärtner Joshua Tuifua

Annual Report and Financial Statements, year ended 31 July 2023

Co-opted members

Carol Marlow Lloyd Stringer Grace Buskell Jane Karczewski (appointed September 2022) Akua Acheampong (appointed September 2022)

Directors

Director of Membership Associate Director of Marketing and Communications

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.

Membership comprises trustees and members coopted from the wider arts, business, and philanthropy sectors, and meets four times a year.

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 are 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. We take into account the needs of any possible donor who may be in vulnerable circumstances and ensure that all communication is clear and does not place any pressure on them to donate. 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 people’s privacy, that it is not unreasonably persistent and that it does not place pressure on anyone to donate.

Trustee members

Ida Levine (Chair) Stephen Moss James Cane Guy Perricone (resigned April 2023) Jane Karczewski

Co-opted members

David Banks (resigned June 2023) Phil Dolling Joanne Muller Christopher Nourse Tristan Davies Georgina Robbins Michael Cole-Fonteyn Mauro Beretta (appointed March 2023)

Director

Director of Development and Fundraising

Development department

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.

We consider the 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 rigorous due diligence and conflict-of-interest guidelines. We do not engage in face-to-face solicitation through third parties.

The development and events team includes three 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 subcommittee and the trustees. There is ongoing investment in fundraising to ensure future growth.

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

Enterprises subcommittee

The board of RADE also acts as the Enterprises subcommittee of the RAD. Its members comprise directors of RADE and trustees.

Royal Academy of Dance

RADE is a separately constituted private limited company owned by the RAD. It is our 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 Ash Sharma Sue Bacchus

Trustee members

Deborah Cornelius Guy Perricone (resigned April 2023)

Co-opted member

Mark Richardson

Annual Report and Financial Statements, year ended 31 July 2023

Acknowledgements

The RAD gratefully acknowledges the invaluable contribution of the following donors who have supported the work of the RAD during the year ended 31 July 2023:

Jack Petchey Foundation The Dorfman Foundation Kusuma Trust Paul Hamlyn Foundation The Linbury Trust Julia and Hans Rausing

The Dame Margot Fonteyn Scholarship Fund

Jo Manoukian

The Gerald and Gail Ronson Family Foundation

Capital Group Ida Levine Maria Björnson Memorial Fund The Late Alec J Custerson Stephen Moss CBE and Joy Moss MBE The Ethos Foundation Buffini Chao Foundation Christopher and Sarah Smith Sir Simon and Lady Robertson Henrietta Gold Chris and Imogen Knight Richard and Jennie Cunis

The Benesh Institute Endowment Fund Arthur J Gallagher & Co Ltd Harlequin Floors Freed of London Diptyque

The RAD extends its sincere thanks to all RAD’s other donors, supporters and partners.

Royal Academy of Dance

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 system 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 forecast, 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, Audit and Risk 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, chief operating officer, 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):

y Marketplace and products 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 currently 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 social media

to publicise, promote and sell our products and services. We regularly consult members to ensure product relevance and help shape future initiatives.

y World events

As shown in the past three years, like many international organisations, we are vulnerable to pandemics, natural phenomena, changes in weather patterns, conflict and terrorism. All 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.

y Economic climate

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, highereducation 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.

y Statutory and regulatory compliance 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. Noncompliance 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.
y People

Working with young people brings safeguarding responsibilities and as such, 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 can lead to reputational loss. We perform due diligence before entering

Annual Report and Financial Statements, year ended 31 July 2023

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 employees respect one another.

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.

y Information and computer systems 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 needs-based 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.

y Foreign exchange

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, Audit and Risk subcommittee. In controlling and underpinning financial risk, the following are key control procedures:

y Operating unit financial controls 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 can be found on our internal HR homepage.

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 all 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.

Royal Academy of Dance

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et
Annual Report and Financial Statements, year ended 31 July 2023
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25
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Financial Review

The financial statements have been prepared in accordance with the Charities Statement of Recommended Practice (SORP), FRS 102 applicable from 2019.

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Group unrestricted results
£’000
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Net assets
Net assets £28,760
£29,000 £28,095
£26,500
£24,000
Income Expenditure
£21,500 £20,916 £21,558 Expenditure
Income £19,751
£18,888
£19,000
£16,500
£14,000 Cash
position
£10,783
£11,500 Cash
position
£9,000 £8,584
£6,500 Net cash/
inflow Capital
£4,000 (outflow) spend
Capital £2,721 £2,336
£1,500 spend
£173
-£1,000
Net income/ Net cash/ Net income/
(expenditure) inflow (expenditure)
-£3,500 (£642) (outflow) (£863)
(£1,437)
FY23 FY22
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During the year ending 31 July 2023 (FY23), the group continued to recover from the effects of the pandemic and reported an increase of 11% in worldwide group income to £20,916,000 (FY22: £18,888,000). This was due to a strong return to normal trading and activity levels. Expenditure increased by 9% to £21,558,000 (FY22: £19,751,000) primarily because in-person delivery of activities such as examinations returned in most countries, resulting in higher costs of travel for freelance examiners and tutors. The global headquarters was operational for 12 months in FY23 compared to only six months in the previous year.

The group net loss before transfers and other recognised gains and losses reduced to £642,000 (FY22: net loss £863,000). Pandemic-related government subsidy and furlough schemes did not operate during the year (FY22: £174,000).

The value of RAD’s unrestricted net assets decreased by 2% to £28,095,000 (FY22: £28,760,000) resulting from a loss on valuation of tangible fixed assets of

£147,000 (FY22: gain £5,576,000) and an exchange loss on consolidation of £346,000 (FY22: gain £349,000).

The group’s overall cash position was £8,584,000, a decrease on prior year (FY22: £10,783,000). There was a net cash outflow from operations of £1,437,000 (FY22: inflow £2,721,000) primarily the result of a VAT payment of £2.3m in relation to the property transaction. Capital expenditure of £173,000 (FY22: £2,336,000) reflected the completion of the headquarters in March 2022.

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 £533,000 in FY23 before transfers and other recognised gains and losses (FY22: net income £1,211,000 (Note 26)). This decrease in funds is due to the winding down of the capital campaign headquarters fundraising initiative on 31 July 2022.

Royal Academy of Dance

Group restricted results £’000

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£2,000
Income
£1,800 £1,738
£1,600
£1,400 Net income/
(expenditure)
£1,211
£1,200 Income
£1,088 Net assets Net assets
£996 £933
£1,000
£800
Net income/
Expenditure (expenditure) Expenditure
£600 £555 £533 £527
£400
£200
£0
FY23 FY22
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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.

Annual Report and Financial Statements, year ended 31 July 2023

Performance by Activity

Group performance by principal activity £’000

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£12,513
Income Expenditure
£10,879
£10,469
£10,000
£9,037
£5,925
£5,541
£5,253
£4,837
£5,000
£1,223 £1,122
£1,148 £1,117
£0
FY23 FY23 FY23 FY22 FY22 FY22
Examinations Education and training Membership Examinations Education and training Membership
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Examinations

Examination fees income increased by 20% to £12,513,000 (FY22: £10,469,000) with direct expenditure increasing by 29% to £6,681,000 (FY22: £5,170,000). This resulted in an increase in net income to £5,832,000 (FY22: £5,299,000). Total examination entries increased by 12% to 220,000 (FY22: 196,173).

During the year RAD operated a hybrid model of in-person and filmed examinations. Although many countries returned to in-person examinations, filmed options proved to be more efficient for some countries and was also popular amongst their customers. In order to offer more flexibility, filmed exams are now a part of the RAD’s product offer, affording teachers and learners the ability to film at a time and venue suitable to them.

During the year to 31 July 2023, 80,000 candidates (FY22: 94,464) were assessed by video, 36% of total entries (FY22: 48% of total entries).

Education and training income

Initial Education income decreased by £95,000 on prior year to £3,319,000, with net income increasing from £744,000 to £900,000. During the year, the Faculty of Education returned to in-person delivery of programmes, in particular BA (Hons) Ballet Education

and Licentiate of the RAD, both of which were delivered onsite. In some countries delivery of programmes was carried out through hybrid models.

The number of Faculty of Education students decreased from 1,484 to 1,321, mainly due to global economic financial constraints affecting both new and continuing students.

Income from Continuing Education increased by 23% to £2,606,000 (FY22: £2,127,000) which demonstrated that CPD activity was also recovering during the year. More face-to-face courses in comparison to the prior year resulted in an increase in expenditure of 10%, with overall net income of £508,000 (FY22: £222,000).

Membership

As a result of the Member Event Series and a 98% graduate conversion rate, subscription income increased by 7% to £1,223,000 (FY22: £1,148,000) and direct expenditure of £339,000 was marginally lower (FY22: £364,000). Net income not including indirect costs increased to £884,000 (FY22: £784,000).

The number of Registered Teachers increased from 7,934 to 8,126. The numbers of other members increased marginally (3,938 to 3,961).

Royal Academy of Dance

Trading income (retail, licensing and royalties)

Income generated by the RADE, the UK trading subsidiary, including licensing and royalty income, increased to £1,148,000 (FY22: £1,022,000). Net income increased to £905,000 (FY22: £714,000).

Fundraising

Fundraising income decreased by 47% to £920,000 and direct expenditure increased by 66% to £524,000, resulting in net income excluding indirect costs of £396,000 (FY22: £1,421,000). This substantial decrease

followed the end of the capital campaign initiative on 31 July 2022.

Other income

Other income is derived from advertising, property rental, sundry income with associated expenditure and taxation on subsidiary company profits.

Indirect costs increased from £9,064,000 to £9,308,000, mainly the result of incurring a full year of running costs in the new headquarters compared to six months in FY22.

Performance against targets for FY23

Number of members worldwide

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12,500
12,400
Target
12,300 (2022-23)
12,428
12,200
12,100
12,000 Actual
(2022-23)
11,900 12,087
11,800 Prior year
Actual
11,700 (2021-22)
11,872
11,600
11,500
Number of members
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There were 12,087 members globally on 31 July 2023, achieving 97% of the total target. The team focused mostly on enhancing benefits for members and building the membership base. Recruitment campaigns were rolled out during FY23.

Number of examinations worldwide

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225,000
220,000
Actual
215,000
(2022-23)
210,000 220,000
205,000
200,000 Target
(2022-23)
195,000 203,000
Prior year
190,000 Actual
(2021-22)
185,000 196,173
180,000
Number of examinations
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We exceeded our FY23 target of delivering 203,000 dance examinations by 12%, achieving 220,000, of which 80,000 were filmed assessments. This demonstrates a strong recovery towards pre-pandemic levels despite the current difficult economic climate.

That 36% 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 mostly carried out filmed examinations during FY23.

Annual Report and Financial Statements, year ended 31 July 2023

Reserves policy

The RAD’s current pattern of activities provides fluctuating peaks and troughs in income and expenditure. The RAD needs to build up reserves not only to cover fallow 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 2023, RAD had total funds of £29,091,000, of which unrestricted funds were £28,095,000 and restricted funds £996,000. Of the unrestricted funds, the designated funds total was £23,729,000. £23,454,000 represents the net book value of fixed assets less associated loans, and £275,000 other designated funds (see note 27). RAD reviews its reserves policy annually.

The target for group free reserves is £3,062,000, of which £2,542,000 are targeted within charity reserves. Actual free reserves at 31 July 2023 for the group were £4,641,000 (including other designated reserves) (FY22: £4,150,000). For the charity only, free reserves at 31 July 2023 were £3,240,000 (FY22: £2,476,000).

During FY23 we have seen a return to pre-pandemic levels of operations. We expect activity to increase throughout FY24 as we introduce enhanced and new product ranges and initiatives with the aim of continuing 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 FY23, cash balances have remained healthy due to a return to fullscale operations and tighter cash management across the Group.

Going concern

The trustees recognise that the RAD must be a wellmanaged, 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 outflow for the Group of £2,155,000 in FY23 (FY22: inflow £19,000), with an outflow from operating activities of £1,437,000 (FY22: inflow £2,721,000). After revaluation due to exchange rates, this resulted in cash and cash equivalents of £8,584,000 at year end (FY22: £10,783,000).

The RAD generated an overall net loss of £109,000. Having spent a full year in the new global headquarters, we have seen increased running costs coupled with a rise in depreciation following the significant upward revaluation of the property at 31 July 2022. Furthermore, stronger recovery of in-person delivery of examinations and courses gave rise to increased travel costs for tutors and examiners. During the year, we have continued to operate a hybrid model of in-person and filmed examinations. Although many countries returned to inperson examinations, filmed options proved to be more efficient for some of our international operations and were also popular amongst their customers.

In September 2023, HSBC Bank Plc renewed the RAD’s grouping facility of £700,000 for a further year. At that time, Royal Academy of Dance Enterprises Limited’s overdraft facility of £300,000 was also renewed for a further year.

RAD has a CBILS loan of £800,000 in place with HSBC, which was drawn down in March 2021. This is being repaid over five years (starting in April 2022). A term loan of £2,500,000 was taken out in July 2021 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 FY24 is dependent on the ongoing impact of the global recession but results to date have been broadly in line with targets and plans are in progress to facilitate greater investment and subsequent growth. Forecasts have been reviewed for the 12-month period from the date of signing the accounts, including downsidescenario planning and mitigating actions against these. Possible mitigating actions include further cost reductions, 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, the opportunity to raise additional financing if required. The RAD will have sufficient resources available to meet its liabilities as they fall due for the 12-month period from the date of signing the accounts and for this reason RAD has prepared the accounts on a going-concern basis.

Future 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.

Having now been in our new headquarters for a full year we are beginning to see many exciting opportunities arise in order to grow and expand our product offerings as well as promote hire of our premises within the dance and performing arts community as well as commercial hires.

We continued to adapt our ways of operating, particularly in terms of digital and online systems. This flexibility not only allowed us to regain pre-pandemic levels of activity but will provide further benefits and efficiencies in the future.

Our main targets for FY24 are to:

y Deliver at least 227,000 examinations, an increase of 3% over FY23
y Achieve worldwide membership of 12,679, an increase of 5% over FY23
y Achieve gross fundraising income of £768,000
y Generate unrestricted net income of £200,000.

Royal Academy of Dance

Statement of the trustees’ responsibilities

The trustees are responsible for preparing the 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:

y Select suitable accounting policies and then apply them consistently

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.

y Observe the methods and principles in the Charities SORP
y Make judgments and estimates that are reasonable and prudent
y State whether applicable accounting standards have been followed
y Prepare the financial statements on the goingconcern basis unless it is inappropriate to presume that the charity will continue in business

Stephen Moss CBE

Chair, Board of Trustees

James Cane FCA

Trustee, Chair of Finance, Audit and Risk subcommittee

Tim Arthur Chief Executive

14 December 2023

Annual Report and Financial Statements, year ended 31 July 2023

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

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 2023 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:

y Give a true and fair view of the state of the Group’s and the parent charity’s affairs as at 31 July 2023 and of the group’s income and expenditure for the year then ended
y Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
y Have been prepared in accordance with the requirements of the Charities Act 2011
y Have been prepared in accordance with the requirements of the OfS Accounts Direction (issued October 2019) (“the OfS Accounts Direction”)

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 12 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.

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:

y The information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
y Sufficient and proper accounting records have not been kept by the charity or returns adequate for our audit have not been received from branches not visited by us; or
y The financial statements are not in agreement with the accounting records and returns; or
y We have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 31, 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

Royal Academy of Dance

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 non-compliance 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 noncompliance 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

Annual Report and Financial Statements, year ended 31 July 2023

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.

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, Audit and Risk 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.

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

15 December 2023

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.

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.

Royal Academy of Dance

Group consolidated statement of financial activities

For the year to 31 July 2023

Notes

2 3 4 5 6 7 8 9 11	2023 2022 Unrestricted funds £’000 Restricted funds £’000 Total funds £’000 Unrestricted funds £’000 Restricted funds £’000 Total funds £’000 Income from Donations and legacies 304 616 920 547 1,190 1,737 Trading 722 - 722 722 - 722 Other trading activities 382 44 426 261 39 300 Investments 44 7 51 17 6 23 Income from charitable activities Examination fees 12,513 - 12,513 10,469 - 10,469 Education and training fees 5,514 411 5,925 5,054 487 5,541 Subscription income 1,223 - 1,223 1,148 - 1,148 Other income 214 10 224 670 16 686
	Total income and endowments 20,916 1,088 22,004 18,888 1,738 20,626
	Expenditure Expenditure on raising funds (1,453) (97) (1,550) (1,424) (26) (1,450) Expenditure on charitable activities (19,631) (431) (20,062) (17,846) (501) (18,347) Other expenditure (474) (27) (501) (481) - (481)
	Total expenditure (21,558) (555) (22,113) (19,751) (527) (20,278)
	Net income/(expenditure) before investment gains and losses and transfers between funds (642) 533 (109) (863) 1,211 348
	Net income/(expenditure) (642) 533 (109) (863) 1,211 348
	Transfers Transfers between funds 462 (462) - 1,919 (1,919) - Other recognised gains and losses On revaluation of tangible fixed assets (147) - (147) 5,576 - 5,576 Movement on exchange arising from the consolidation of branches and subsidiaries (338) (8) (346) 351 (2) 349
	Net movement in funds (665) 63 (602) 6,983 (710) 6,273
	Fund balances brought forward at 1 August 28,760 933 29,693 21,777 1,643 23,420
	Total funds carried forward at 31 July 28,095 996 29,091 28,760 933 29,693

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.

Annual Report and Financial Statements, year ended 31 July 2023

Group and charity balance sheets

At 31 July 2023

Notes

		Group		Charity
		2023	2022	2023	2022
		£000	£000	£000	£000
	Fixed assets
19	Tangible and intangible assets	26,367	27,523	26,163	27,311
20	Investments	159	165	270	276
		26,526	27,688	26,433	27,587
	Current assets
21	Stocks	276	304	148	153
22	Debtors	1,767	1,473	3,539	2,566
	Cash at bank and in hand	8,584	10,783	5,678	7,379
		10,627	12,560	9,365	10,098
23	Creditors – amounts falling due within one	(5,387)	(7,577)	(5,637)	(6,900)
	year
	Net current assets	5,240	4,983	3,728	3,198
	Total assets less current liabilities	31,766	32,671	30,161	30,785
24	Creditors – amounts falling due after more	(2,675)	(2,978)	(2,675)	(2,978)
	than one year
	Net assets	29,091	29,693	27,486	27,807
	FUNDS
26	Restricted funds	996	933	996	933
27	Unrestricted funds	28,095	28,760	26,490	26,874
	Total funds	29,091	29,693	27,486	27,807

The accompanying notes form part of these accounts.

These financial statements were approved and signed on behalf of the Board of Trustees on 14 December 2023 by:

Stephen Moss CBE

Chair, Board of Trustees

James Cane FCA

Trustee, Chair of Finance, Audit and Risk subcommittee

Tim Arthur Chief Executive

Royal Academy of Dance

Group cash flow statement

For the year to 31 July 2023

Restricted and unrestricted funds Notes a. STATEMENT OF CASH FLOWS Cash flows from operating activities: *Net cash (used in)/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 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/(expenditure) 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 paid Depreciation – tangible fixed assets Decrease in stocks (Increase) in debtors (Decrease)/increase in creditors Effect of foreign exchange on net assets *Net cashprovided by operating activities* c. 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 (used in)/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 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/(expenditure) 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 paid Depreciation – tangible fixed assets Decrease in stocks (Increase) in debtors (Decrease)/increase in creditors Effect of foreign exchange on net assets *Net cashprovided by operating activities* c. Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents	2023 2022 £000 £000
		(1,437) 2,721
		51 24 (301) (212) (173) (2,336)
		(423) (2,524)
		(295) (178)
		(295) (178)
		(2,155) 19 10,783 10,914 (44) (150)
	*Cash and cash equivalents at the end of the reporting period* c.	8,584 10,783
	Reconciliation of net income/(expenditure) 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 paid Depreciation – tangible fixed assets Decrease in stocks (Increase) in debtors (Decrease)/increase in creditors Effect of foreign exchange on net assets	(109) 348 1 (1) (51) (23) 301 212 6 5 - (1) 879 740 28 255 (293) (385) (2,199) 1,571 - -
	*Net cashprovided by operating activities*	(1,437) 2,721
	Analysis of cash and cash equivalents Cash in hand	8,584 10,783
	Total cash and cash equivalents	8,584 10,783

Annual Report and Financial Statements, year ended 31 July 2023

Analysis of changes in net debt Cash at bank and in hand Total cash and cash equivalents Debt due within one year Debt due after oneyear	2022 Cash flow movement 2023 £000 £000 £000 10,783 (2,199) 8,584
	10,783 (2,199) 8,584 (266) 6 (260) (2,951) 288 (2,663)
Total	7,566 (1,905) 5,661

Royal Academy of Dance

Accounting policies Year ended 31 July 2023

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 Practice as it applies from 1 January 2015.

The 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 SORP 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 SORP: 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 outflow for the group of £2,155,000 in FY23 (FY22: inflow £19,000), with an outflow from operating activities of £1,437,000 (FY22: inflow £2,721,000). After revaluation due to exchange rates, this resulted in cash and cash equivalents of £8,584,000 at year end (FY22: £10,783,000).

The RAD generated an overall net loss of £109,000. Having spent a full year in the global headquarters, we have seen increases in running costs as well as a rise in depreciation due to the significant upward revaluation of the property at 31 July 2022. Furthermore, stronger recovery of in-person delivery of examinations and courses gave rise to increased travel costs for tutors and examiners. During the year, we have continued a hybrid model of in-person and filmed examinations. Although many countries returned to in-person examinations, filmed options proved to be more efficient for some of our international operations and were also popular amongst their customers.

HSBC Bank Plc renewed the RAD’s grouping facility of £700,000 for a further year in September 2023. Royal Academy of Dance Enterprises Limited’s overdraft facility of £300,000 was renewed for a further year in September 2023.

RAD has a CBILS loan of £800,000 in place with HSBC, which was drawn down in March 2021. This is being 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 FY24 is dependent on the macroeconomic situation in the countries where we operate. Forecasts have been reviewed for the 12-month period from date of signing the accounts, including downside-scenario planning and mitigating actions against these. Possible mitigating actions include implementing further cost reductions and being able to raise additional financing if required, given the relatively low level of borrowings compared to the valuation of the headquarters and overseas properties.

The RAD will have sufficient resources available to meet its liabilities as they fall for the 12-month period from the date of signing the accounts and for this reason has prepared the accounts on a goingconcern basis.

Annual Report and Financial Statements, year ended 31 July 2023

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 2023, 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-inprogress 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 lives. Provision is made for any impairment.

Included within this category are also heritage assets which are books, manuscripts, specimens, objects or other assets that have historic or artistic qualities and are held and maintained principally for their contribution to knowledge and culture. In so far as heritage assets are used as operational assets, as in the case of historic buildings, they are capitalised in accordance with the policies set out in 1(e) above. Other heritage assets – principally printed materials, pictures and objects of artistic interest – are, for individual items exceeding £50,000, capitalised at cost or valuation on acquisition, but only where a reliable valuation is available. Valuations reflect any impairment or restrictions on use of the assets by the university. No heritage assets acquired prior to 1 August 2022 have been capitalised, as reliable information concerning their cost or value on acquisition is not available.

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 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.

Royal Academy of Dance

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 receivable 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 examinations 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 twoyear programme that falls across three financial periods.

All grants and donations income is accounted for gross when the charity has entitlement to the funds, the amount can be quantified and receipt of the funds is probable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. Grants which have been specified for use in future periods are recognised in deferred income and released in the relevant accounting period.

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.

y Costs of raising funds: costs of raising funds include expenditure related to support departments and staff members engaged in or contributing to those activities
y Costs of charitable activities: charitable expenditure includes all expenditure related to the objects of the charity and includes expenditure related to support departments and staff members engaged in or contributing to charitable activities
y Governance costs: these are costs associated with the constitutional and statutory requirements of the Group, and include expenditure related to the trustees and senior staff members engaged in or contributing to the governance of the group. These are allocated within support costs as per the requirements of the Charities SORP 2019
y Indirect support costs have been allocated on the following bases:
y Salaries and pensions
y General administration
y Information technology
y Rent and property
y Depreciation
staff numbers per department
staff numbers per department
staff numbers per department
departmental use for office space and income generated for studio space
estimated use
y Governance staff numbers per department
y Finance charges Income-to-cost ratio

Annual Report and Financial Statements, year ended 31 July 2023

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.

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 only 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 may 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.

Royal Academy of Dance

Notes to the accounts

Year ended 31 July 2023 Notes

2 Income from: Donations, gifts and legacies Funding grants	2023 2022 Unrestricted funds £’000 Restricted funds £’000 Total funds £’000 Unrestricted funds £’000 Restricted funds £’000 Total funds £’000 89 106 195 270 - 270 215 510 725 277 1,190 1,467
	304 616 920 547 1,190 1,737

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 2023 Unrestricted funds £000 Restricted funds £000 Total funds £000 Unrestricted funds £000 4 Other trading activities Fundraising activities 8 44 52 4 Licensing and royalty income 238 - 238 242 Property and studio hire 136 - 136 15 382 44 426 261 5 Investment income Interest received 44 7 51 17 44 7 51 17 6 Education and training fees Initial Education 3,319 - 3,319 3,414 Continuing Education 2,195 411 2,606 1,640 5,514 411 5,925 5,054 7 Other income Advertising income 21 - 21 24 Furlough income - - - 174 All other income 193 10 203 472 214 10 224 670*	Turnover net of taxes and discounts Cost of sales and other costs Net income from retail trading 2023 Unrestricted funds £000 Restricted funds £000 Total funds £000 Unrestricted funds £000 4 Other trading activities Fundraising activities 8 44 52 4 Licensing and royalty income 238 - 238 242 Property and studio hire 136 - 136 15 382 44 426 261 5 Investment income Interest received 44 7 51 17 44 7 51 17 6 Education and training fees Initial Education 3,319 - 3,319 3,414 Continuing Education 2,195 411 2,606 1,640 5,514 411 5,925 5,054 7 Other income Advertising income 21 - 21 24 Furlough income - - - 174 All other income 193 10 203 472 214 10 224 670*	2023 2022 £000 £000 722 722 (243) (308)
		479 414
		2022 Restricted funds £000 Total funds £000 39 43 - 242 - 15
	382 44 426 261	39 300
	44 7 51 17	6 23
	44 7 51 17	6 23
	3,319 - 3,319 3,414 2,195 411 2,606 1,640	- 3,414 487 2,127
	5,514 411 5,925 5,054	487 5,541
	21 - 21 24 - - - 174 193 10 203 472	- 24 - 174 16 488
	214 10 224 670	16 686

Furlough income relates to income received as a result of worldwide coronavirus government support grants. The total amount received in the UK for the year was £nil (FY22: £36,751) and no staff were furloughed or part-furloughed in the year (FY22: 47). The grants are accounted for on a revenue basis and therefore there are no unfulfilled conditions or other contingencies attached.

Annual Report and Financial Statements, year ended 31 July 2023

Notes to the accounts

Year ended 31 July 2023 Notes

Australia Canada New Zealand USA Germany Israel Italy Singapore UK	2023 2022 £’000 £’000 - - - 29 - - - - - 59 - - - 41 - 8 - 37
	- 174

Expenditure 8 Costs of raising funds Fundraising activities Retail trading 9 Costs of charitable activities Examinations Initial Education Continuing Education Subscription	2023 2022 Unrestricted funds Restricted funds Unrestricted funds Restricted funds Direct costs Direct costs Support costs Total funds Direct costs Direct costs Support costs Total funds £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 427 97 68 592 290 26 49 365 243 - 715 959 308 - 777 1,085
	670 97 783 1,550 598 26 826 1,450
	6,681 - 4,198 10,879 5,170 - 3,867 9,037 2,405 14 2,418 4,837 2,670 - 2,583 5,253 1,681 417 1,126 3,224 1,404 501 1,035 2,940 339 - 783 1,122 364 - 753 1,117
	11,106 431 8,525 20,062 9,608 501 8,238 18,347

Royal Academy of Dance

Notes to the accounts

Year ended 31 July 2023 Notes

			2023			2022
		Unrestricted	Restricted	Total	Unrestricted	Restricted	Total
		funds	funds	funds	funds	funds	funds
		£’000	£’000	£’000	£’000	£’000	£’000
0	Auditor fees payable
	Fees payable to the Group's auditor and its associates for the			audit of the Group’s annual accounts
	Audit fees
	2022-23	107	-	107	80	-	80
	2021-22 additional fees	-	-	-	12	-	12
	Other services	60	-	60	1	-	1
	Fees payable to the Group’s auditor and its associates for the			audit of the Group's subsidiaries
	Audit fees	35	-	35	44	-	44
	Other services	7	-	7	-	-	-
	Fees payable to other auditors for the audit of the Group’s branches and subsidiaries
	Fees	54	-	54	79	-	79
	Other fees and services	8	-	8	-	-	-
11	Other expenditure
	All other expenditure	128	21	149	286	-	286
	Taxation	346	6	352	195	-	195
		474	27	501	481	-	481

10 Auditor fees payable

Annual Report and Financial Statements, year ended 31 July 2023

Notes to the accounts

Year ended 31 July 2023 Notes

12 Analysis of indirect support costs[1]

Salaries and pensions General administration Information technology Financing charges Depreciation Rent and property Governance	2023 Examinations Initial education Continuing education Trading Fundraising activities Total £’000 £’000 £’000 £’000 £’000 £’000 1,640 681 362 318 40 3,330 893 611 260 140 16 2,089 308 282 106 72 3 861 136 87 38 18 - 302 371 268 130 58 4 905 577 364 169 79 5 1,292 273 125 61 30 - 529
	4,198 2,418 1,126 715 68 9,308

Salaries and pensions General administration Information technology Financing charges Depreciation Rent and property Governance	2022 Examinations Initial education Continuing education Trading Fundraising activities Total £’000 £’000 £’000 £’000 £’000 £’000 1,719 971 407 411 28 3,863 677 470 214 143 11 1,673 180 182 58 43 4 534 92 69 24 12 - 213 273 255 100 45 3 735 627 521 187 89 1 1,538 289 115 45 35 1 518
	3,867 2,583 1,035 778 48 9,064

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

Royal Academy of Dance

Notes to the accounts

Year ended 31 July 2023 Notes

13 Related-party transactions

Seven trustees (FY22: Seven) who are also examiners, tutors or mentors received a total of £55,434 (FY22: £43,195) 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 eight trustees (£41,690) during the year (FY22: £1,450)

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 14 exam videos including recording and IT hardware usage Cost of transaction: £145 (€167) (FY22: €119) Amount due at 31 July 2023: £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: £9,133 (R198,437) (FY22: £10,864 (R219,811)) Amount due at 31 July 2023: £Nil (R Nil) (FY22: £Nil (R Nil))

Related-party: Ross Alexander (son of National Director - USA) as owner of Viabold

Transaction: Website Management services Cost of transaction: £4,456 (US$5,400) (FY22: £5,183 (US$6,820)) Amount due at 31 July 2023: £Nil (US$Nil) (FY22: £Nil, (US$Nil))

Related-party: Ferrell Alexander (daughter of National Director - USA) as part time employee

Transaction: payroll costs Cost of transaction: £8,944 (US$ 10,838) (FY22: £7,984 (US$ 10,506)) Amount due at 31 July 2023: £Nil (US$Nil) (FY22: £Nil, (US$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: £59,121 (¥9,927,582) (FY22: £62,894 (¥9,236,852)) Amount due at 31 July 2023: £0 (¥ 0) (FY22: £0 (¥ 0))

R elated-party: Dance Etc (National Director - Portugal)

Transaction: Office and studio hire Cost of transaction: £3,732 (€4,290) (FY22: £3,110 (€3,674)) Amount due at 31 July 2023: £Nil (€Nil) (FY22: £Nil (€Nil))

Related-party: Pilar Monteiro (niece of National Director) - as employee of RAD Portugal

Transaction: payroll costs Cost of transaction: £15,136 (€17,397) (FY22: £14,545 (€17,182)) Amount due at 31 July 2023: £Nil (€Nil) (FY22: £Nil (€Nil))

Related-party: Blanca Cortes (daughter of National Director - Spain)

Transaction: Annual office rent Cost of transaction: £5,565 (€ 6,396) (FY22: £5,384 (€ 6,360)) Amount due at 31 July 2023: £Nil (€Nil) (FY22: £Nil (€Nil))

Related-party: Family members (National Director - Malaysia)

Transaction: Office rental and salaries Cost of transaction: £10,944 (MYR 59,850) (FY22: £3,090 (MYR 82,814))

All transactions were at arm’s length.

Annual Report and Financial Statements, year ended 31 July 2023

Notes to the accounts

Year ended 31 July 2023 Notes

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

					2023	2023								2022	2022
		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	RAD	Intercompany balances with	RADE	Intercompany balances with	with RAD	Intercompany loan balances	with RAD (South Africa)	Intercompany loan balances
		£’000	£’000		£’000		£’000		£’000		£’000	£’000		£’000		£’000		£’000
Royal Academy of Dance	United	530		-	(559)			-		-	307		-	(566)			-		-
	Kingdom
Royal Academy of Dance	United	-		559		-		-		-	-	566			-		-		-
Enterprises Limited	Kingdom
Royal Academy of Dance	Brazil	-		57		-		-		-	-		-		-		-		-
S/C Ltda
Royal Academy of Dance	Germany	-		67		-		-		-	-	122			-		-		-
gGmbh
Yayasan Royal Academy of	Indonesia	-		25		-		-		-	-		89		-		-		-
Dance Indonesia
Royal Academy of Dance	Italy	-		66		-		-		-	-		55		-		-		-
Srl
RAD Dancing (Malaysia)	Malaysia	-		93		-		-		-	-		60		-		-		-
Sdn Bhd
Royal Academy of Dance	Mexico	-		59		-		-		-	-		47		-		-		-
de Mexico AC
Royal Academy of Dance	Singapore	-		86		-		-		-	-		89		-		-		-
Singapore Pte Ltd
Royal Academy of Dance	South Africa	-		-		-		-		2	-		-		-		-		7
s21 Company
Royal Academy of Dance	Spain	-		70		-		-		-	-		56		-		-		-
SL
RAD Dancing (Thailand)	Thailand	-		23		-		-		-	-		14		-		-		-
Sdn Bhd
Royal Academy of Dance	Australia	-		87		8		-		-	-		-		13		-		-
(Australia Branch)
Royal Academy of Dance -	Canada	-	(119)			56	(206)			-	-	(69)			12		-		-
Canadian Branch
Royal Academy of Dance	Israel	-		45		-		-		-	-		37		-		-		-
(Israeli Branch)
Royal Academy of Dance	Japan	-		40		3		-		-	-		40		3		-		-
Royal Academy of Dance -	New Zealand	-	(369)			4	(31)			-	-	(370)			17	(60)			-
New Zealand Branch
Royal Academy of Dance	Portugal	-		61		-		-		-	-		52		-		-		-
Royal Academy of Dance	South Africa	-		71		5		22		-	-		45		15		22		-
Royal Academy of Dance	USA	-		13		-		-		-	-		9		31		-		-

Royal Academy of Dance

Notes to the accounts

Year ended 31 July 2023 Notes

14 Funds held as custodian trustees

At the year end, the Group and the Charity held monies totalling £7,519 (FY22: £7,519) on behalf of its clients. 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 insurance 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 2023 was £25,776 (FY22: £27,465).

16 Costs of employees

a) The Academy employed 215.0 (FY22: 232.8) administrative staff and 8.0 (FY22: 10.0) commission-based staff worldwide, as well as contracting the services of examiners, teachers, tutors and musicians. Employment costs account for 57% (FY22: 58%) of total expenditure (excluding other expenditure):

Employee gross salaries Employee payroll taxes Employer pension contribution Employees on commission Total employment costs	2023 2022 Unrestricted funds £’000 Restricted funds £’000 Total funds £’000 Unrestricted funds £’000 Restricted funds £’000 Total funds £’000 10,688 - 10,688 10,104 - 10,104 702 - 702 728 - 728 492 - 492 531 - 531 856 - 856 333 - 333
	12,738 - 12,738 11,696 - 11,696

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.

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

Basic salary	2023	2022
Number of group employees earning:
Between £120,001 - £130,000	1	-
Between £100,001 - £110,000	1	1
Between £70,001 - £80,000	8	5
Between £60,001 - £70,000	4	8

The total employee benefits for the key management personnel of the charity (as listed on page 6), including employer's pension contributions and national insurance, were £895,000 (FY22: £784,000).

Annual Report and Financial Statements, year ended 31 July 2023

Notes to the accounts

Year ended 31 July 2023 Notes

Costs of employees (continued) c) Employees earning over £100,000:

Basic salary	2023	2022
Between £115,001 - £120,000	1	-
Between £100,001 - £105,000	1	1
Former chief executive (retired April 2022)
Basic salary: Average staff salary ratio	-	4:1
Total remuneration: Average staff total remuneration	-	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’s salary is based on current market rates for similar roles in the n
Former chief executive (retired April 2022)	2023	2022
	£	£
Basic salary	-	100,585
Pension contributions	-	11,386
Occupational health insurance	-	4,376
Total remuneration	-	116,347
Incumbent chief executive (started March 2022)	2023	2022
	£	£
Basic salary	120,000	50,000
Pension contributions	13,579	2,263
Occupational health insurance	-	-
Total remuneration	133,579	52,263

The chief executive’s salary is based on current market rates for similar roles in the not-for profit sector.

There were no redundancy payments made during the year (FY22: £62,660).

Royal Academy of Dance

Notes to the accounts

Year ended 31 July 2023 Notes

17 Pension costs

The pensions charge for the year to 31 July 2023 was £492,000 (FY22: £531,000).

In the UK, the RAD currently operates two schemes, representing in total 147 (FY22: 152) employees.

Provider

Aegon Scottish Equitable

Type of scheme

Defined-contribution scheme

Teachers' Pension Scheme (TPS)

An unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and is detailed in the valuation report, which was published in October 2023.

Following the McCloud judgement, the remedy proposed that when benefits become payable, eligible members can select to receive them from either the reformed or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation have valued the ‘greater value’ benefits for groups of relevant members.

The valuation confirmed that the employer contribution rate for the TPS would increase from 23.6% to 28.6% from 1 April 2024. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%.

Outside the UK, RAD operates or contributes to a variety of defined-contribution schemes, money-purchase schemes or statutory schemes, representing 55 (FY22: 69) employees in 11 (FY22: 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 if similar charitable exemptions overseas, provision has been made for overseas taxation on the profits of overseas subsidiaries and branches.

Annual Report and Financial Statements, year ended 31 July 2023

Notes to the accounts

Year ended 31 July 2023 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 2022	68	25,907	1,559	3,467	53	31,054
Exchange-rate movements	(2)	(216)	(17)	(52)	(5)	(292)
Additions	-	49	43	90	-	182
Disposals	-	-	(1)	(8)	-	(9)
Revaluation	-	(598)	-	-	-	(598)
At 31 July 2023	66	25,142	1,584	3,497	48	30,337
Accumulated depreciation
At 1 August 2022	56	-	370	3,051	53	3,530
Exchange-rate movements	(2)	92	(16)	(48)	(5)	21
Charge for the year	6	451	137	285	-	879
Eliminated on disposals	-	-	(1)	(8)	-	(9)
Revaluation	-	(451)	-	-	-	(451)
At 31 July 2023	60	92	490	3,280	48	3,970
Net book value
At 31 July 2023	6	25,050	1,094	217	-	26,367
At 31 July2022	12	25,907	1,188	416	-	27,523
Charity	£’000	£’000	£’000	£’000	£’000	£’000
Cost or valuation
At 1 August 2022	43	25,762	1,428	3,351	53	30,637
Exchange-rate movements	(3)	(199)	(18)	(53)	(5)	(278)
Additions	-	49	20	75	-	144
Disposals	-	-	-	-	-	-
Revaluation	-	(598)	-	-	-	(598)
At 31 July 2023	40	25,014	1,430	3,373	48	29,905
Accumulated depreciation
At 1 August 2022	43	-	283	2,948	53	3,327
Exchange-rate movements	(3)	91	(16)	(49)	(5)	18
Charge for the year	-	451	123	274	-	848
Eliminated on disposals	-	-	-	-	-	-
Revaluation	-	(451)	-	-	-	(451)
At 31 July 2023	40	91	390	3,173	48	3,742
Net book value
At 31 July 2023	-	24,923	1,040	200	-	26,163
At 31 July2022	1	25,763	1,145	402	-	27,311

Royal Academy of Dance

Notes to the accounts

Year ended 31 July 2023 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 2022 Exchange movement Charge for the year Additions to freehold Disposals to freehold Increase / (decrease) in valuation Value at 31 July 2023 £’000 £’000 £’000 £’000 £’000 £’000 £’000 22,489 - (451) 49 - (487) 21,600 3,188 (117) - - - 252 3,323 229 (99) - - - (3) 127
	25,906 (216) (451) 49 - (238) 25,050

United
Kingdom
Australia
South Africa
Total

Value at
1 August
2022
Exchange
movement
Charge for
the year
Additions
to freehold
Disposals
to freehold
Increase /
(decrease)
in valuation
Value at
31 July
2023
£’000
£’000
£’000
£’000
£’000
£’000
£’000
22,489
-
(451)
49
-
(487)
21,600
3,188
(117)
-
-
-
252
3,323
229
(99)
-
-
-
(3)
127

25,906
(216)
(451)
49
-
(238)
25,050

The freehold property in London, UK was valued as at 31 July 2023 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 as at 31 July 2023 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 RAD holds heritage assets which include a unique, internationally significant and continually expanding range of archival and printed sources, exhibits and pictures of ballet memorabilia. These resources are available for use by the staff and students of RAD, the wider community and any member of the public who has an interest in the RAD’s collection. As reliable cost information is not available and conventional valuation approaches lack sufficient meaning, given that certain aspects of these assets are irreplaceable, no value is included on the balance sheet in respect of these assets. No heritage assets were capitalised during the year as none exceeded the capitalisation threshold of £50,000. All subsequent expenditure incurred on the heritage assets is reviewed to determine whether it meets the criteria set out in FRS 102 for capitalising subsequent expenditure on an asset. Where the criteria is not met, the expenditure is accounted for through the Statement of Financial Activities. Expenditure that is required to preserve or prevent further deterioration of individual collection items is recognised in the Statement of Financial Activities when it is incurred.

Annual Report and Financial Statements, year ended 31 July 2023

Notes to the accounts

Year ended 31 July 2023 Notes

20 Investments

Investments
Quoted investments Market value at 1 August Investment during the year Net realised / unrealised gains /(losses) Market value at 31 July Historical cost at 31 July Investments in subsidiaries Balance at 1 August Exchange differences At 31 July Total investments at 31 July Quoted investments Held in the United Kingdom Held outside the United Kingdom	Group Charity 2023 2022 2023 2022 £’000 £’000 £’000 £’000 153 151 153 151 7 13 7 13 (1) 1 (1) 1
	159 165 159 165
	99 99 99 99
	- - 111 114 - - - (3)
	- - 111 111
	159 165 270 276
	62 64 62 64 97 101 97 101

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.

Royal Academy of Dance

Notes to the accounts

Year ended 31 July 2023 Notes

Investments (continued)

Investments in subsidiaries

Subsidiaries	incorporation	number	capital	Assets	Liabilities	Net assets	Capital	Income	Expenditure	Surplus / (deficit)
				£’000	£’000	£’000	£’000	£’000	£’000	£’000
Royal	Brazil	CNP-J27907864/0001-48	Held in	133	63	70	-	321	335	(14)
Academy of			trust
Dance S/C
Ltda
Royal	Germany	HRB 103317	100%	322	154	168	64	438	403	35
Academy
of Dance
gGmbh
Yayasan	Indonesia	Yayasan No 138	100%	43	105	(62)	-	73	53	20
Royal			control
Academy
of Dance
Indonesia
Royal	Italy	TN-0174567	99%	210	127	83	8	589	613	(24)
Academy of
Dance Srl
Royal	Mexico	RFC RAD	Held in	270	63	207	-	266	222	44
Academy of		011026DT5	trust
Dance de
Mexico AC
RAD Dancing	Malaysia	No 282399-X	100%	519	270	249	-	229	360	(131)
(Malaysia)
Sdn Bhd
Royal	Singapore	No 02211/1988-M	100%	985	426	559	-	343	555	(212)
Academy
of Dance
Singapore
Pte Ltd
Royal	South	1990/004233/08	100%	221	148	73	-	262	275	(13)
Academy of	Africa		control
Dance
Royal	Spain	CIF No B-59915330	100%	284	86	198	2	345	353	(8)
Academy of
Dance SL
RAD Dancing	Thailand	0505554003970	49%	180	50	130	37	177	161	16
(Thailand)
Sdn Bhd
Royal	United	No 2773495	100%	607	622	(15)	-	460	460	-
Academy	Kingdom
of Dance
Enterprises
Ltd
Balance as at	31 July			3,774	2,114	1,660	111	3,503	3,790	(287)

Annual Report and Financial Statements, year ended 31 July 2023

Notes to the accounts

Year ended 31 July 2023 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	Group Charity 2023 2022 2023 2022 £’000 £’000 £’000 £’000 276 304 148 153
	276 304 148 153
	Group Charity 2023 2022 2023 2022 £’000 £’000 £’000 £’000 216 205 147 132 - - 2,149 1,430 479 612 354 513 1,072 656 889 491
	1,767 1,473 3,539 2,566

23 Creditors: amounts falling due within one year

ounts 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 Charity 2023 2022 2023 2022 £’000 £’000 £’000 £’000 (260) (266) (260) (266) (1,321) (1,042) (1,197) (903) - - (1,141) (384) (239) (2,840) (59) (2,582) (3,567) (3,429) (2,980) (2,765)
	(5,387) (7,577) (5,637) (6,900)

Bank overdrafts

At 31 July 2023, the Royal Academy of Dance in the United Kingdom had not utilised any of the £700,000 available in the grouped overdraft facility (FY22: £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 12 months in September 2023.

As at 31 July 2023, 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 2023.

An overdraft facility of A$400,000 with Westpac, secured on the property at 20 Farrell Avenue, Sydney, was 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.

Royal Academy of Dance

Notes to the accounts

Year ended 31 July 2023 Notes

Movement on deferred income during the year Balance brought forward Received in year Released to income Balance carried forward 24 Creditors: amounts falling due after more than one year Provision for long-service award Bank loans Balance at 31 July	Group 2023 2022 £’000 £’000 2,434 3,228 4,555 3,491 (4,112) (4,285) 2,877 2,434 Group 2023 2022 £’000 £’000 (12) (27) (2,663) (2,951) (2,675) (2,978)	Charity 2023 2022 £’000 £’000 1,890 2,990 3,880 2,959 (3,515) (4,059)
		2,255 1,890
		Charity 2023 2022 £’000 £’000 (12) (27) (2,663) (2,951)
		(2,675) (2,978)

Bank loans

Bank loans of £2,663,034 (FY22: £2,951,587) relate to:

y The Canadian branch obtained the Canada Emergency Business Account loan of C$60,000. The loan is interest free and due no later than December 31, 2023. If the branch is able to pay C$40,000 on or before December 31, 2023 the remaining C$20,000 will be forgiven. If the loan cannot be repaid by December 31, 2023, the loan will be converted into a two-year term loan, with an interest rate of 5%, with repayment due no later than December 31, 2025.

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

y Coronavirus Business Interruption Loan (CBILS) is an unsecured loan of £800,000 utilised from March 2021 for general working capital requirements. The loan repayments commenced 12 months after the drawdown date and comprise interest at a rate of 3.99% per annum above the Bank of England base rate on the outstanding loan balance. An election has been made to utilise the business interruption payment scheme (BIP) where interest payments interest in the first 12 months will be covered by the BIP. The loan must be repaid in full no later than March 2027.
y Term Loan of £2,500,000 utilised from July 2021 to facilitate the purchase of a new group headquarters property located at York Road, London, UK. The loan repayments commenced one month after the drawdown date and made in 58 instalments of £12,319 each with a final repayment of the outstanding balance. Interest of 3.25% per annum over the Bank of England base rate will be calculated on the outstanding amount of the loan on a monthly basis. The loan must be repaid in full no later than July 2026

25 Commitments

Capital commitments

There are £nil (FY22: £nil) capital commitments as at 31 July 2023.

Operating leases

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

	2023	2022
	£'000	£'000
Less than 1 year	115,480	124,193
2-5 years	172,884	248,414
Over 5years	10,928	23,163

Lease payments of £182,942 (FY22: £150,786) were charged to the Consolidated Statement of Financial Activities during the year.

Operating leases for Canada, China, Germany, Italy, Japan, Malaysia, Spain and Thailand were not reported in the prior year and these have been included in the restated figures.

Annual Report and Financial Statements, year ended 31 July 2023

Notes to the accounts

Year ended 31 July 2023 Notes

26 Movement in restricted funds

Type of Fund Restricted Step into Dance 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 Dancing Times archive Restricted New Headquarters fund UK Restricted Margot Fonteyn International Ballet Competition UK Restricted Capital asset fund Canada Restricted Total Charity Building fund South Africa Restricted Total Group	Balance at 1 Aug 2022 Exchange movement Income Expenditure Other recognised gains and losses Transfers from unrestricted funds Balance at 31 July 2023 £’000 £’000 £’000 £’000 £’000 £’000 £’000 5 - 411 (417) - 1 - 119 - 10 (22) - (39) 68 556 - 15 (23) - - 548 50 - - - - - 50 10 - 4 (7) - - 7 69 - 3 (1) - - 71 18 - - - - (18) - 14 - 95 (72) - - 37 69 (6) 6 (13) - (5) 51 16 (2) - - - (14) - 1 - - - - (1) - - - 60 - - - 60 - - 392 - - (392) - - - 92 - - - 92 - - - - - 12 12
	927 (8) 1,088 (555) - (456) 996
	6 - - - - (6) -
	933 (8) 1,088 (555) - (462) 996

Royal Academy of Dance

Notes to the accounts

Year ended 31 July 2023 Notes

26 Movement in restricted funds (prior year)

Type of Fund Restricted Step into Dance 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	Balance at 1 Aug 2021 Exchange movement Income Expenditure Other recognised gains and losses Transfers from unrestricted funds Balance at 31 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) - (1,919) 927
	6 - - - - - 6
	1,643 (2) 1,750 (539) - (1,919) 933

Annual Report and Financial Statements, year ended 31 July 2023

Notes to the accounts

Year ended 31 July 2023 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:

y Step into Dance: A fully inclusive, community dance programme, a partnership between the RAD, which leads the programme and The Jack Petchey Foundation, which funds it.
y The Community Learning and Innovation Fund (CLIF): Funded research into Dance for Lifelong Wellbeing.
y Benesh Projects: Funds are raised from the Benesh Institute Endowment Fund to finance changes made in the Benesh Movement website and Benesh course material.
y Scholarship/bursary funds: To provide grants to students attending teacher education and notation programmes at the Academy. Awards totalling £22,781 were made in this financial year (FY22: £20,579).
y Boys Only! funds: Funds raised at a joint RAD/RBS Billy Elliot preview gala to provide opportunities for male students whose access to dance is limited for economic, geographic or physical reasons. There was spend of £nil in the year (FY22: £nil) to support Project B, created to inspire boys and men of all ages to dance.
y Iris Truscott fund: A trust deed registered with the Charity Commissioners to give awards to students wishing to progress from either the CBTS to a Level 2 or 3 teaching qualification validated by the University of Bath and delivered by the Academy; or from BA Ballet Education to LRAD programme.
y Regional Scholarship funds: Funds are raised and administered by Regional Advisory Committees in England and Wales to provide scholarships for students to further their training.
y Jubilee Awards 2012: One of four awards made to the Royal Academy of Arts, the Royal Academy, the Royal Academy of Dramatic Art and the Royal Academy of Dance to honour HM The Queen’s patronage of the four Academies in her Golden Jubilee Year.
y RADiate funds: Funds are raised from a grant received by City Bridge Trust and school tuition fees for special needs education in primary schools.
y Christel Addison funds (South Africa): A legacy left by a South African teacher to fund teacher training opportunities overseas for South African residents. No awards were made.
y Scholarship funds (Israel): To provide scholarships for students to further their training. No awards were made.
y Transfer of HQ building capital campaign fund from restricted to unrestricted – In the prior year all expenditure against the building was recorded as unrestricted but the corresponding income was recorded as restricted. To reflect the correct position, a prior year transfer has been made from restricted to unrestricted funds to recognise that the grants received had been fully spent on the building.
y The Margot Fonteyn International Ballet Competition is dedicated to promoting and rewarding standards of excellence in young ballet dancers internationally by offering aspiring dancers the unique opportunity to work with world-renowned choreographers and professionals, as well as the chance to perform on an international stage.
y Building Fund (South Africa): The building is owned by Royal Academy of Dance, a company registered in South Africa under its s21 Companies Act. Funds are raised by renting the building.

Royal Academy of Dance

Notes to the accounts

Year ended 31 July 2023 Notes

27 Movement in unrestricted funds

	Balance at	Exchange	Income	Expenditure	Other	Transfer	Balance at
	1 Aug 2022	movements			recognised	between	31 Jul 2023
					gains	funds
	£’000	£’000	£’000	£’000	£’000	£’000	£’000
Charity
Designated funds	255	(3)	10	(25)	-	38	275
Unrestricted funds	2,221	(13)	15,726	(15,388)	-	419	2,965
Fixed asset reserve	24,398	(297)	144	(848)	(147)	-	23,250
Total	26,874	(313)	15,880	(16,261)	(147)	457	26,490
Group
Designated funds	255	(3)	10	(25)	-	38	275
Unrestricted funds	3,895	(24)	20,733	(20,662)	-	424	4,366
Fixed asset reserve	24,610	(312)	173	(870)	(147)	-	23,454
Total	28,760	(339)	20,916	(21,557)	(147)	462	28,095

Movement in unrestricted funds	Movement in unrestricted funds	(prior year)
	Balance at	Exchange	Income	Expenditure	Other	Transfer	Balance at
	1 Aug 2021	movements			recognised	between	31 Jul 2022
					gains	funds
	£’000	£’000	£’000	£’000	£’000	£’000	£’000
Charity
Designated funds	236	14	5	-	-	-	255
Unrestricted funds	-	91	1,441	(1,415)	185	1,919	2,221
Fixed asset reserve	19,483	246	14,682	(15,589)	5,576	-	24,398
Total	19,719	351	16,128	(17,004)	5,761	1,919	26,874
Group
Designated funds	236	14	5	-	-	-	255
Unrestricted funds	1,845	91	4,203	(4,163)	-	1,919	3,895
Fixed asset reserve	19,696	246	14,680	(15,588)	5,576	-	24,610
Total	21,777	351	18,888	(19,751)	5,576	1,919	28,760

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.

Royal Academy of Dance

Notes to the accounts

Year ended 31 July 2023 Notes

Movement in designated funds (Charity and Group)

	Balance at	Exchange	Income	Expenditure	Transfer	Balance at
	1 Aug 2022	movements			between	31 Jul 2023
					funds
	£’000	£’000	£’000	£’000	£’000	£’000
Genée legacy funds	6	-	-	-	-	6
Challengenée funds	56	-	1	(2)	-	55
Social Responsibility fund	95	(3)	8	(23)	20	97
Evans legacy	58	-	-	-	18	76
Fiona Campbell legacy	40	-	1	-	-	41
Designated funds*	255	(3)	10	(25)	38	275

Prior year

	Balance at	Exchange	Income	Expenditure	Transfer	Balance at
	1 Aug 2021	movements			between	31 Jul 2022
					funds
	£’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

Designated funds have been earmarked for specific purposes of the RAD and include support for ballet competitions, student bursaries and innovation and need in dance education, training and performance, especially in communities where opportunity is limited. A short to medium-term spending plan will be established for these funds during FY24.

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 Analysis of group net assets between funds (prior year) Tangible and intangible fixed assets Investments Current assets Current liabilities Amounts falling due after more than one year Total net assets	2023 Unrestricted funds £’000 Restricted funds £’000 Total funds £’000 26,367 - 26,367 152 7 159 9,638 989 10,627 (5,387) - (5,387) (2,675) - (2,675)
	28,095 996 29,091
	2022 Unrestricted funds £’000 Restricted funds £’000 Total funds £’000 27,523 - 27,523 149 16 165 11,643 917 12,560 (7,577) - (7,577) (2,978) - (2,978)
	28,760 933 29,693

Annual Report and Financial Statements, year ended 31 July 2023

Group

The results of the 12 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, 51 Silwood Road, Bramley 2090, 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

Royal Academy of Dance

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 449200 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 51 Silwood Road, Bramley 2090, Johannesburg, South Africa United States 2625 S Greeley Street Suite 360, Milwaukee, WI 53207

UK Group

The results of the 11 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 Jin Zuo, Room 201A, 108 Chuang Yi Plaza, 11 Yu Jing Gang Road, Shanghai 200070 Cyprus 71 Irinis Street, 3041 Limassol Greece British Council, 17 Kolonaki Square, Athens 10673 Hong Kong Unit 1905, 19/f, 135 Bonham Strand Trade Centre, 135 Bonham Strand, Hong Kong 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 109-603, 50 Gaepo-ro 110 gil, Gangnam-gu, Seoul 06344 Taiwan 5f, No 122, Sect 7 Chung Shan N. Road, Taipei 11151

Annual Report and Financial Statements, year ended 31 July 2023

Bankers

UK bank	HSBC Bank Plc	31 Holborn Circus, London EC1N 2HR
Advisers
UK law firm	Fieldfisher LLP	41 Vine Street, London EC3N 2AA
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 24, 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	Gedung Sentra Kramat B No. 18, JL Kramat
		Raya 7-9, Jakarta Pusat 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	Crowe Johannesburg	9 Autumn Street, Rivonia, Sandton,
		South Africa

Royal Academy of Dance

Royal Academy of Dance 188 York Road London SW11 3JZ

Tel: +44 (0)20 7326 8000 Email: info@rad.org.uk

www.royalacademyofdance.org www.radenterprises.co.uk

@RoyalAcademyofDance @RADheadquarters Royal Academy of Dance @royalacademyofdance

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Royal Academy of Dance® is a charity registered in England and Wales No. 312826

2023-07-31-accounts

Contents

Report of the Chair of the Board of Trustees

Chief Executive’s Report

Vice Patron, President and Officers

Vice Patron

Her Majesty The Queen

President

Dame Darcey Bussell DBE

Trustees

RAD RTS

Coopted Trustees

Executive Board

Tim Arthur

Ash Sharma

Vice Presidents

Advisory Council

Report of the Trustees

Statement of Corporate Governance

Governing documents

Governing body

Recruitment of trustees and training of trustees

Organisational management

Statement of Internal Control & Risk Management

Principal Activities

Public Benefit

Mission and Vision

220,000

Strategic Objectives and Achievements

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

Achievements and Performance

Artistic

Examinations

Faculty of Education

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

Examinations

Membership

Library & Archive

Learning and Participation

Dance School

Step into Dance

RADiate

Marketing and Communications

Continuing Professional Development (CPD)

RAD Corporate Structure

Subsidiary companies

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 seven separate subcommittees.

President and Vice Presidents

Advisory Council

International Advisers

The Board of Trustees

List A Trustees

List B Trustees

Stephen Moss CBE

Co-opted Trustees

Meetings

Constitution

Induction

Related parties

Independence

Indemnities and insurance

Board subcommittees

Trustee members

Co-opted members

Directors

Examinations and Regulatory subcommittee

Trustee members

Finance, Audit and Risk subcommittee

Co-opted members

Director

Artistic subcommittee

Trustee members

Co-opted members

Director

Education subcommittee