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← The Royal Northern College Of Music Awards Fund

2025-07-31-accounts

THE ROYAL NORTHERN COLLEGE OF MUSIC AWARDS FUND

Charity Number 504948

Financial Statements

31 July 2025

CONTENTS Page
Reference and Administrative Details 1
Trustee’s Report 3
Trustee’s statement of responsibilities 6
Report of the Independent Auditor to the Trustee 7
Statement of Financial Activities 10
Balance Sheet 11
Notes to the accounts 12

THE ROYAL NORTHERN COLLEGE OF MUSIC AWARDS FUND

REFERENCE AND ADMINISTRATIVE DETAILS

LEGAL STATUS

The Charity is a trust regulated by Schemes of the Charity Commissioners for England and Wales dated 6 October 1975, 22 October 1992 and 15 March 1999.

INVESTMENT POWERS

The charity has general power of investment in accordance with section 3 of the Trustee Act 2000.

CHARITY COMMISSION REGISTRATION Registered Number 504948

ADDRESS OF THE CHARITY 124 Oxford Road Manchester M13 9RD

TRUSTEE

The Royal Northern College of Music

The Governors of the Royal Northern College of Music who were in office during the year are listed in the Royal Northern College of Music Consolidated Financial Statements for the year ended 31 July 2025 a copy of which are available at www.rncm.ac.uk.

THE ROYAL NORTHERN COLLEGE OF MUSIC AWARDS FUND

LEGAL AND ADMINISTRATIVE DETAILS

BANKERS Royal Bank of Scotland 38 Mosley Street Manchester M2 3AZ

EXTERNAL AUDITORS Haysmac LLP 10 Queen Street Place London EC4R 1AG

INVESTMENT MANAGERS W1M 16 Babmaes Street London SW1Y 6AH

SOLICITORS Mills and Reeve No. 1 Circle Square 3 Symphony Park Manchester M1 7FS

THE ROYAL NORTHERN COLLEGE OF MUSIC AWARDS FUND

TRUSTEE’S REPORT Year ended 31 July 2025

The Trustee of The Royal Northern College of Music Awards Fund presents its annual report and audited financial statements for the year ended 31 July 2025.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Royal Northern College of Music Awards Fund is constituted under trust schemes dated 6 October 1975, 22 October 1992 and 15 March 1999 and is a registered charity number 504948.

The College Board of Governors, the sole Trustee of the Awards Fund, when appointing the members of its Finance and Audit Committees, has regard to ensuring that the skills and experience thus available to them is sufficient and appropriate to their terms of reference. The Board also undertakes periodic reviews of its own effectiveness, and that of its committees, in fulfilling their roles.

The Trustee confirms that it is a public benefit entity and has referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities and setting the grant making policy for the year.

The Students Awards Committee meets to recommend quantum of resource and policies for disbursement of student support funding to the College’s Executive Committee and to the Finance Committee of the Board.

OBJECTIVE AND ACTIVITIES

The objective of the Fund is to apply its income to the education of students of The Royal Northern College of Music by the award of prizes, scholarships, exhibitions, grants for travel or for the purchase of musical instruments, maintenance allowances or other similar benefits.

In making such awards the Trustee is required, so far as in its opinion it is practicable, to secure that effect is given to the intentions of the original benefactors and that their names are perpetuated.

RISK MANAGEMENT

The Trustee has considered the major risks faced by the charity and believes that the principal threat to its ability to achieve its objectives lies in its ability to maintain its revenues, both from investments and from donations.

In order to monitor this risk, regular meetings are held with the investment manager whilst the Trustee seeks to build a continuing relationship with major donors by providing them with regular reports and opportunities to visit the College.

Risks for individual funds are considered within the College’s overall risk monitoring and reporting procedures, and any strategic risks identified will be contained within the College’s Risk Register, which also contains details of the controls put into place by the College in order to mitigate those risks. This register is then scored using the best practice scoring methodology, which seeks to identify particularly those risks which require further attention. The Register is formally reported to the College’s Board of Governors.

GRANT MAKING POLICY

The Trustee considers applications from all students who have been offered a place to study at the College. Such offers are made solely on the basis of musical ability, without regard to the financial circumstances of anyone achieving the required standard. All students are made aware of the existence of the fund and the application procedures at their audition.

Applications for bursary support are made by individuals, and are considered at Student Awards Committee meetings. The public benefit from this policy is that this makes education at the College open to all, regardless of their economic position, and the funding of bursaries is deemed by the Trustee to be a key contributor to public benefit.

There is no private benefit accruing either to the Trustees of the College or the members of the College who form the committee which reviews applications.

THE ROYAL NORTHERN COLLEGE OF MUSIC AWARDS FUND

TRUSTEE’S REPORT Year ended 31 July 2025

RELATED PARTIES AND CONNECTED CHARITIES

The Royal Northern College of Music is the sole Trustee of the Awards Fund. The Awards Fund is concerned with support for students and does not enter into transactions with the College.

ACHIEVEMENTS AND PERFORMANCE

Unrestricted income for the year ended 31 July 2025 was £1,135,850. Of this, £17,529 was derived from legacies and donations and the balance of £1,118,321 arose from investments and bank balances held as part of the permanently endowed capital of the charity. Junior Fellowships, medals, prizes and awards amounted to £1,470,841 and, after charging expenses of £8,436 a deficit of £343,427 reduced previously accumulated surpluses.

Restricted income of £804,245 was received during the year from donors in respect of specific awards. Scholarships and awards amounted to £1,109,417 creating a deficit of £305,171 to carry forward.

In addition, the Awards Fund received an endowment for the sum of £250,000 for investment, the income from which will fund additional awards in future years. Gains on investments were £762,471 being realised gains of £351,501 and unrealised gains of £410,970. After accounting for these and investment management fees of £120,437 the Endowment Fund increased to £21,949,069 at 31 July 2025.

The achievements of each fund in qualitative terms are that they widen the access to the College such that we at least meet our objectives within the Office for Fair Access agreement, maintain the College’s extremely high retention and achievement rates at over 95%, and also allow for the development of world-class performers of all disciplines as well as significantly increasing employability.

GOING CONCERN

The Charity’s financial statements are prepared on a going concern basis as the Trustee is satisfied after making appropriate enquiries that, at the time of their approval, the Charity has the resources to continue in operation for the foreseeable future.

Despite recent economic and geopolitical issues and their impact on the investment markets, the two main sources of income for the fund, donations and investment income, have not been materially impacted. The funds have minimal operating costs and with reserves of over £24m, it is entirely appropriate to adopt the going concern basis for the 2024/25 financial statements.

INVESTMENT POLICY

The investments are intended to provide an income which, together with the capital can be used to finance the running of the charity.

The Trustee recognises the risk associated with investment in mainstream financial markets and accepts this risk in return for the prospect of additional returns over longer periods of time. As such, the Trustee wishes to remain largely invested at all times, subject to cash reserves being held as part of the investment management process and to cover liabilities. The investments of the Fund should be well diversified and include a range of assets including fixed interest stocks, UK shares and overseas shares. Although capital appreciation is not a primary objective, taking one year with another both the income and the capital value of the fund should, at a minimum, increase in line with inflation.

The investment fund managed by W1M is invested on a total return basis. The charity is permitted to adopt a total return investment strategy due to the guidance set out in the Trusts (Capital and Income) Act 2013.

Total return accounts for two categories of return: income and capital appreciation. Income includes interest paid by fixed-income investments, distributions or dividends. Capital appreciation represents the change in the market price of an asset.

The unapplied total return at 31 July 2013 of £3m, which represents the historic capital growth, provides a reasonable buffer to support the adoption of a total return approach and a 5% withdrawal rate has been adopted. This withdrawal rate is reviewed annually.

THE ROYAL NORTHERN COLLEGE OF MUSIC AWARDS FUND

TRUSTEE’S REPORT

Year ended 31 July 2025

Both the implementation of and performance against this policy, and the extent to which it remains a reasonable aspiration, are reviewed with the investment advisor on a regular basis. Following the appointment of Waverton in March 2013 we have adopted a ‘balanced’ approach, as defined by their guidelines. Over the long term, the objective is to achieve a return of inflation plus 3%, with inflation defined as the UK Consumer Price Index (CPI). The agreed benchmark to measure shorter term performance is a composite of a ‘neutral’ position of 60% in Global Equities (MSCI AC World Index), 20% Fixed Income (10% Markit iBoxx Gilts Index, 10% Markit iBoxx £ Corporate Bond Index), 18% Alternatives (9% S&P Real Assets Index (Hedged), 9% Absolute Return Index) and 2% Cash (ICE GBP SONIA 1- Month).

The portfolio enjoyed a positive return during the 12 month period to 31 July 2025, rising in value by +8.5% after fees. The portfolio marginally underperformed the short-term benchmark over the 12 months, which returned +9.2% The returns in the short term have been well ahead of the inflation +3% measure, although this is a long-term objective. Over the long term (7-years plus) the portfolios are ahead of the CPI+3% objective.

The positive return was realised despite the tariff announcements by President Trump of 2[nd] April, which unsettled markets and resulted in a sharp fall in share prices. But, an expectation of a downward trajectory for inflation and interest rates, and a major stimulus Bill in the US, helped to create favourable conditions for risk assets thereafter. The portfolio’s equities rose in value by +12.8% over the year, ahead of the MSCI AC World Index, which returned +12.5%. Bonds were disappointing, although marginally positive, rising by 1.5%. The gold price was particularly strong (+31.9%), which helped the Alternatives allocation record a +5.3% contribution to returns. One of the main headwinds was the devaluation of the US dollar, as the portfolio does have a high dollar weight, but the underlying US dollar denominated securities provided a positive return in sterling terms despite the currency drag.

RESERVES POLICY

Whilst the Trustee seeks to maintain undesignated unrestricted funds at a minimum level of £500,000 to cover any unplanned expenditure, they do not deem it necessary to hold a specific amount in reserve to cover short term declines in income. This is due to the investment portfolio being invested on a total return basis. The portfolio valuation still supports this and the unapplied total return can be utilised in the short term if there should be a decline in income from the fund.

Current Unrestricted Reserves stand at £1.2m and are therefore some way above the stated level in this policy. The trustee has plans in place to utilise the excess of reserves over the coming years in order to reduce Unrestricted Reserves back to £500,000. A number of additional awards have been identified which will increase spend by a total of c.£1.3m over a 4 year period.

Restricted funds held for specific purposes were £1,678,626 at 31 July 2025.

Endowed funds are permanent and expendable endowments were £21,949,069 at 31 July 2025.

FUTURE DEVELOPMENTS

Requests for assistance continue to exceed the resources available and the Trustee does not expect this situation to change in the immediate future: consequently the Trustee wishes to enhance both the income and the capital base of the Fund.

AVAILABILITY AND ADEQUACY OF ASSETS OF EACH OF THE FUNDS

In the opinion of the Trustee the assets of each fund are available and adequate to fulfil their obligations. There are no contingent liabilities or guarantees. See note 1 for an explanation of the types of fund maintained by the charity.

Approved by the Trustee on 26 November 2025 and signed as authorised on their behalf by

Ravi Gupta Chair of the Board of Governors

THE ROYAL NORTHERN COLLEGE OF MUSIC AWARDS FUND

Statement of Trustee’s responsibilities in respect of the Trustee’s annual report and the financial statements

Under charity law, the Trustees are responsible for preparing a Trustee’s Annual Report and financial statements for each financial year which show a true and fair view of the state of affairs of the charity and of the excess of income over expenditure for that period. The Trustee has elected to prepare the financial statements in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the Charities Act 2011.

In preparing these financial statements, generally accepted accounting practice entails that the Trustee:

The Trustee is required to act in accordance with the trust deed of the charity, within the framework of trust law. They are responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the Trustee to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.

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

THE ROYAL NORTHERN COLLEGE OF MUSIC AWARDS FUND

Independent auditor’s report to the trustee of The Royal Northern College of Music Awards Fund

Opinion

We have audited the financial statements of The Royal Northern College of Music Awards Fund for the year ended 31 July 2025 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee’s 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 ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustee is responsible for the other information. The other information comprises the information included in the Trustee’s Annual Report. 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

THE ROYAL NORTHERN COLLEGE OF MUSIC AWARDS FUND

Matters on which we are required to report by exception

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

Responsibilities of the trustee for the financial statements

As explained more fully in the trustee’s responsibilities statement [set out on page 6], the trustee is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustee determines 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 trustee is responsible for assessing the 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 trustee 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

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.

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

Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to compliance with charity law applicable in England and Wales, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and consider other factors such as UK tax legislation.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the risk of improper cut-off of income (other than that from investments) and management override of controls through improper journal entries or the inappropriate use of accounting estimates. Audit procedures performed by the engagement team included:

THE ROYAL NORTHERN COLLEGE OF MUSIC AWARDS FUND

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Use of our report

This report is made solely to the charity’s trustee, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustee 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’s trustee as a body for our audit work, for this report, or for the opinions we have formed.

Yao“ Ue
HaysMac LLP 10 Queen Street Place
Statutory Auditors London
Date:
4 December 2025		 EC4R 1AG

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

STATEMENT OF FINANCIAL ACTIVITIES Year Ended 31 July 2025 Year Ended 31 July 2024 Year Ended 31 July 2024
Note Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
Funds Funds Funds Funds Funds Funds
£ £ £ £ £ £ £ £
INCOME
Voluntary Income 17,529 804,245 250,000 1,071,774 91,771 917,751 120,000 1,129,522
Investment Income - - 1,038,566 1,038,566 - - 963,311 963,311
Transfer to Income 1,038,566 - (1,038,566) - 963,311 - (963,311) -
Bank interest 79,755 - - 79,755 94,950 - - 94,950
Total Income 1,135,850 804,245 250,000 2,190,096 1,150,033 917,751 120,000 2,187,784
EXPENDITURE
Cost of raising funds
Investment management costs - - 120,437 120,437 - - 112,007 112,007
Charitable activities 2 1,470,841 1,109,417 - 2,580,258 1,097,234 832,130 - 1,929,364
Other expenditure -
Audit/Legal fees 8,400 - - 8,400 13,620 - - 13,620
Bank charges 36 - - 36 38 - - 38
Total Expenditure 1,479,277 1,109,417 120,437 2,709,131 1,110,891 832,130 112,007 2,055,028
NET INCOME/(EXPENDITURE) FOR THE YEAR BEFORE
INVESTMENT GAINS AND LOSSES (343,427) (305,171) 129,563 (519,035) 39,141 85,621 7,993 132,756
Gains on revaluations and disposals of investments held for charity use:
Gain on sale of investments - - 1,487,962 1,487,962 - - 1,118,437 1,118,437
Less: Previously accounted for as an Unrealised (gain) - - (1,136,461) (1,136,461) - - (978,675) (978,675)
Realised from investments - - 351,501 351,501 - - 139,762 139,762
Unrealised from investments - - 410,970 410,970 - - 1,825,296 1,825,296
TOTAL INVESTMENT GAINS / (LOSSES) - - 762,471 762,471 - - 1,965,058 1,965,058
NET INCOME/(EXPENDITURE) FOR THE YEAR (343,427) (305,171) 892,034 243,436 39,141 85,621 1,973,051 2,097,814
Transfer of negative restricted balances to unrestricted (363,581) 363,581 - -
Release of endowed funds - 125,000 (125,000) -
NET MOVEMENTS IN FUNDS FOR THE YEAR (707,008) 183,409 767,034 243,436 39,141 85,621 1,973,051 2,097,814
TOTAL FUNDS AT 1 AUGUST 1,912,225 1,495,217 21,182,036 24,589,477 1,873,083 1,409,595 19,208,984 22,491,661
TOTAL FUNDS AT 31 JULY 8 1,205,217 1,678,626 21,949,069 24,832,913 1,912,225 1,495,217 21,182,036 24,589,476
All amounts derive from continuing activities.

10

BALANCE SHEET
Year ended 31 July 2025
Note As at 31 July 2025 As at 31 July 2024
£ £ £ £
FIXED ASSETS
Investments 3 18,479,287 20,759,727
CURRENT ASSETS
Debtors 4 2,969,363 128,369
Cash at bank and in hand 3,501,835 4,009,497
6,471,198 4,137,866
CURRENT LIABILITIES
Creditors and accruals 5 117,573 308,117
NET CURRENT ASSETS 6,353,625 3,829,749
TOTAL NET ASSETS 24,832,912 24,589,476
CAPITAL FUNDS
Endowment fund 6 21,949,069 21,182,035
INCOME FUNDS
Restricted 7 1,678,626 1,495,216
Unrestricted 1,205,217 1,912,225
2,883,843 3,407,441
TOTAL FUNDS 8 24,832,912 24,589,476

Approved and authorised for issue by the Trustee on 26/11/2025 and signed as authorised on their beha

Chair of the Board of Governors, Ravi Gupta

Principal, Linda Merrick

11

NOTES TO THE ACCOUNTS Year ended 31 July 2025

1 ACCOUNTING POLICIES

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 Charities Statement of Recommended Practice (FRS 102) in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the “Accounting and Reporting by Charities: Statement of Recommended Practice Charities SORP 2005” which has since been withdrawn.

These financial statements are consolidated with the Royal Northern College of Music financial statements, a copy of which are available at www.rncm.ac.uk

Accounting convention

The financial statements are prepared under the historical cost convention as modified by the revaluation of investments to market value and prepared in pounds sterling rounded to the nearest pound.

Fund accounting

The charity maintains various types of funds as follows:

Endowment funds

Permanent endowments - the donor has specified that the fund is to be permanently invested to generate an income stream

Expendable endowments - the donor has specified a particular objective and the trustees have the power to use the capital.

Restricted funds

Restricted funds represent income which has been allocated by the donor for specific purposes.

Unrestricted funds

Unrestricted funds, which include the income derived from the endowment funds, represent resources which are expendable at the discretion of the Trustee in the furtherance of the objectives of the charity.

Income

All income is recognised in the statement of financial activities when the conditions for receipt have been met, where receipt is probable and the amount is quantifiable. When a claim for repayment of income tax has been, or will be, made such income is grossed up for the tax recoverable. Where income is received relating to a future accounting period, the statement of financial activities shows the gross amount received together with the change in amount deferred to future accounting periods. Deferred income at the year end is included in creditors. The following accounting policies are applied to income.

Legacies and donations

Legacies and donations are accounted for when conditions for their receipt have been met and where that amount can be estimated reliably and receipt is probable. Material items receivable at the year end are included at an estimated value of the amount to be received.

Investment income

Investment income is accounted for when receivable and includes any related tax recoverable.

Expenditure

Direct charitable expenditure

Direct charitable expenditure includes all expenditure directly related to the objectives of the charity.

12

NOTES TO THE ACCOUNTS Year ended 31 July 2025

1 ACCOUNTING POLICIES (continued)

Grants Payable

Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure. Recipients of grants payable are primarily students of the Royal Northern College of Music.

Other expenditure

Other expenditure comprises professional fees and miscellaneous expenses. The administration of the charity is undertaken by staff employed by the Royal Northern College of Music using facilities provided by that body. The value of this support has not been quantified.

Cash Flow

The financial statements of the Awards Fund are consolidated into the group financial statements of the Royal Northern College of Music and is therefore considered to be a qualifying entity (for the purposes of FRS102) and has applied the exemptions available under FRS102 in respect of preparing a cash flow statement.

Investments

Investments within the scope of Section 11 of FRS 102 (therefore excluding investments in subsidiaries, associates and joint ventures) are recognised initially at the transaction price (adjusted for transaction costs except in the initial measurement of financial assets and liabilities that are subsequently measured at fair value through profit and loss) unless the arrangement constitutes, in effect, a financing transaction. Subsequently, they are measured at fair value if the investment is publicly traded or their fair value can otherwise be measured reliably with the changes in fair value recognised in the statement of comprehensive income

The investment fund managed by W1M is invested on a total return basis. The charity is permitted to adopt a total return investment strategy due to the guidance set out in the Trusts (Capital and Income) Act 2013.

Total return accounts for two categories of return: income and capital appreciation. Income includes interest paid by fixed-income investments, distributions or dividends. Capital appreciation represents the change in the market price of an asset.

At its inception at 31 July 2013, the unapplied total return was £3m. This represents the historic capital growth and provides a reasonable buffer to support the adoption of a total return approach and a 5% withdrawal rate has been adopted. This withdrawal rate is reviewed annually. See note 12.

Tax

The Royal Northern College of Music Awards Fund is considered to pass the tests set out in Para 1 Schedule 6 Finance Act 2010 and therefore meets the definition of a charitable trust for UK income tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Part 10 Income Tax Act 2007 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Accounting Estimates and Judgements

The Charity has not identified any accounting estimates or judgements that would significantly affect the amounts recognised in the financial statements.

Going Concern

The Trustee has assessed the ability of the Charity to continue as a going concern, considering events and conditions that may cast significant doubt upon its ability to do so for the foreseeable future and have not identified any material uncertainties within their review. Based on its appropriate enquiries the Trustee is satisfied that, at the time of their approval, the Charity has the resources to continue in operation for the foreseeable future. Consequently these accounts have been prepared on a going concern basis.

13

NOTES TO THE ACCOUNTS Year ended 31 July 2025

2 GRANTS PAYABLE

Junior Fellowships
Medals & Prizes
Eva Turner Award
Annie Ridyard Award
Awards		 Unrestricted
Restricted
Total Unrestricted
Restricted
Total
Funds
Funds
Funds
Funds
£
£
£
£
£
£
99,297
-
99,297
101,433
-
101,433
68,175
-
68,175
53,725
3,150
56,875
15,000
-
15,000
15,000
-
15,000
15,000
-
15,000
15,000
-
15,000
1,273,369
1,109,417
2,382,785
912,076
828,980
1,741,056
Year Ended 31 July 2025
Year Ended 31 July 2024
1,470,841
1,109,417
2,580,257
1,097,234
832,130
1,929,364

All grants payable are made to individuals, as all are awarded to current students of RNCM.

3 INVESTMENTS HELD AS FIXED ASSETS

Year Ended 31 July 2025 Year Ended 31 July 2024
£ £
Opening market value 20,759,726 19,905,035
Additions at cost 2,580,867 3,100,679
Capital appreciation 520,000 614,983
Disposals at opening market value (5,786,709) (3,028,853)
Unrealised gains/(losses) 410,970 1,825,296
Movement on cash (5,569) (657,412)
Short Dated Bonds - (1,000,000)
Closing market value 18,479,287 20,759,726
Historical cost 13,457,120 15,704,166

Summary details of investments held at 31 July 2025 are as follows:

Bonds
UK Equities
Continental European Equities
North American Equities
Japanese Equities
Asia Pacific Equities
Alternatives
Cash & Cash Holdings		 Cost
Market Value
£
£
2,788,482
2,689,888
715,768
755,656
1,214,586
1,481,070
4,680,830
8,019,892
1,087,266
1,635,770
965,950
1,389,842
1,919,711
2,422,642
84,527
84,527
13,457,120
18,479,287

14

NOTES TO THE ACCOUNTS Year ended 31 July 2025

**4 ** DEBTORS Year Ended 31 July 2025 Year Ended 31 July 2024
£ £
Debtors 26,000 28,538
Prepayments 143,364 99,831
Loan to RNCM due within 1 year 280,000 -
Loan to RNCM due within more than 1 year 2,520,000 -
2,969,364 128,369

The RNCM Awards Fund has an intra group loan in place with the RNCM, approved by The Charity Commission, for £2.8m, repayable over 10 years at a fixed rate of 5% p.a.

**5 ** CREDITORS Year Ended 31 July 2025 Year Ended 31 July 2024
£ £
Creditors 69,708 77,762
Accruals 47,865 230,355
117,573 308,117

6 MOVEMENT IN ENDOWMENT FUNDS

Endowment funds comprise resources which have been made available and which the Trustee is legally required to invest or retain for the purposes of the charity. Endowment funds, held as fixed assets, are a mix of permanent endowments, where the Trustee has no power to convert into income, and expendable endowments, where the Trustee has the power to use the capital. Movements for the year are set out in the Statement of Financial Activities on page 10 of this document.

7 MOVEMENT IN RESTRICTED FUNDS

Restricted funds represent grants, donations and legacies received which are allocated by the donor for specific purposes. Expenditure from restricted funds is entirely related to prizes, bursaries and scholarships.

Adam Gorb Award
Anderson Powell Prize
Derek Wyndham
Dobie Award
Dullator Foundation
Kinder Award
Gough Kelly
Gwilm Gwalchmia Jones
Hacker Young
Harwood Prize
Hibbard
Leverhulme Trust
Millar Scholarships
Ogus Travel Bursary
Peter & Yvonne Wilson Award
Rollo Davidson Scholarship
Sir John Fisher Foundation
Waverley
Zochonis Fund
Various		 Balance
01/08/23
Income
Expenditure
Balance
31/07/24 Transfer
Income
Expenditure
Balance
31/07/25
£
£
£
£
£
£
£
£
-
50000
-
50,000
-
-
7,000
43,000
86,000
-
-
86,000
-
-
-
86,000
149,030
-
-
149,030
-
-
-
149,030
79,500
25,000
47,700
56,800
-
30,000
27,000
59,800
14,500
12,500
-
27,000
-
12,500
-
39,500
49,000
20,000
10,000
59,000
-
20,000
10,000
69,000
90,463
-
-
90,463
-
-
-
90,463
81,348
-
-
81,348
-
-
-
81,348
45,000
-
-
45,000
-
-
-
45,000
25,500
-
3,000
22,500
-
-
-
22,500
82,103
-
-
82,103
-
-
-
82,103
128,780
174,000
130,940
171,840
-
173,500
173,100
172,240
21,000
-
5,000
16,000
-
-
15,000
1,000
19,599
-
200
19,399
-
3,000
-
22,399
77,900
-
-
77,900
-
-
-
77,900
95,053
-
-
95,053
-
-
-
95,053
134,900
28,000
6,000
156,900
-
-
18,000
138,900
168,764
112,511
110,000
171,275
-
109,656
114,000
166,932
30,500
-
-
30,500
-
-
-
30,500
30,656
495,740
519,290
7,106
488,581
455,589
745,317
205,959
2023/2024
2024/2025
1,409,596
917,751
832,130
1,495,217
488,581
804,245
1,109,417 1,678,626

The total for the Various category above includes donations which individually are £15,000 or less or were received and expended in the year.

15

NOTES TO THE ACCOUNTS Year ended 31 July 2025

8 ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS

Year Ended 31 July 2025 Year Ended 31 July 2024 Year Ended 31 July 2024
Endowment **Restricted ** Unrestricted Total **Endowment ** Restricted Unrestricted Total
Funds Funds Funds Funds Funds Funds
£ £ £ £ £ £ £ £
Fixed Assets
Investment 18,479,287 - - 18,479,287 20,759,727 - - 20,759,727
Current Assets
Debtors 2,800,000 1,250 168,114 2,969,364 25,000 27,295 76,074 128,369
Cash 709,248 1,747,083 1,045,504 3,501,835 434,248 1,544,761 2,030,487 4,009,497
Current Liabilities
Creditors and
accruals (39,465) (69,708) (8,400) (117,573) (36,940) (76,840) (194,337) (308,117)
21,949,069 1,678,626 **1,205,217 ** 24,832,912 **21,182,035 ** 1,495,216 **1,912,225 ** 24,589,476

9 TAXATION

The Royal Northern College of Music Awards Fund, as a registered charity, is exempt from taxation on its income and gains falling within Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable objectives.

No tax charge has arisen in the year.

10 CHARITABLE COMMITMENTS

At the date of the balance sheet the Student Awards Committee of the Royal Northern College of Music had processed applications/offers for grants/scholarships for the year 2025/2026 to the value of £1,901k. This does not present a binding commitment and awards made will be subject to formal approval by the Trustee and are also subject to the recipients fulfilling certain conditions.

11 RELATED PARTY TRANSACTIONS AND CONNECTED CHARITIES

The Royal Northern College of Music is the sole Trustee of the Awards Fund. The RNCM Awards Fund has an intra group loan in place with the RNCM, approved by The Charity Commission, for £2.8m, repayable over 10 years at a fixed rate of 5%.

The Royal Northern College of Music (RNCM) is and independent corporation, established as a Higher Education Corporation under the terms of the Education Reform Act 1988, and operating within the provisions of an Instrument of Government made by the Privy Council in May 1993 under the terms of the Further and Higher Education Act 1992. As a recipient of substantial public funding and by virtue of its educational objectives, it is an exempt charity as defined by the Charities Act 2011, with the Office for Students (OfS) acting as its Principal Regulator.

16

NOTES TO THE ACCOUNTS Year ended 31 July 2025

12 Statement of Total Return

Statement of Total Return
At 1 August 2024
Gift component of the permanent endowment
Unapplied total return
Total at 1 August 2024
Movements in the reporting period:
Gift of endowment funds
Release of endowment
Investment return: investment income
Investment return: realised and unrealised gains
Less investment management costs
Total movements in the reporting period
Unapplied total return allocated to the trust for investment in the year
Unapplied total return allocated to income in the year
Net movements in the reporting period
Gift component of the permanent endowment
Unapplied total return
Total at 31 July 2025		 Trust for
Investment
£
13,864,834
-
13,864,834
250,000
(125,000)
-
-
-
125,000
-
-
125,000
13,989,834
13,989,834		 Unapplied Total
Return
£
-
7,317,201
7,317,201
-
-
1,038,566
762,471
(120,437)
1,680,600
-
(1,038,566)
642,034
7,959,235
7,959,235		 Total
Endowment
£
13,864,834
7,317,201
21,182,035
250,000
(125,000)
1,038,566
762,471
(120,437)
1,805,600
-
(1,038,566)
767,034
13,989,834
7,959,235
21,949,069

17