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← The Royal Northern College Of Music Endowment Fund

2025-07-31-accounts

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THE ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT FUND

Charity Number 504949

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

ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT 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 504949

ADDRESS OF THE CHARITY 124 Oxford Road Manchester M13 9RD

TRUSTEE

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.

ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT 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

ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT FUND

TRUSTEE’S REPORT

Year ended 31 July 2025

The Trustee of The Royal Northern College of Music Endowment 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 Endowment Fund is constituted under a trust scheme dated 22 October 1992 and is a registered charity number 504949.

The College Board of Governors, the sole Trustee of the Endowment 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.

OBJECTIVE AND ACTIVITIES

The objective of the Fund is to apply its income in such ways as the Trustee considers fit for the general purposes of the Royal Northern College of Music and the Junior School at the Royal Northern College of Music and in the advancement of the education of its students and former students.

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 from investments and donations.

In order to monitor this risk, regular meetings are held with the investment managers, and the Trustee is represented on the Board of Governors of the Associated Board of the Royal Schools of Music.

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 requests for assistance made by the Royal Northern College of Music and other approved grantees and, when offering support, gives preference to those projects and activities which enhance the long term standing and profile of the College.

There is no private benefit accruing either to the Trustee of the College or the members of the College who form the committee which requests assistance.

RELATED PARTIES AND CONNECTED CHARITIES

The Royal Northern College of Music is the sole Trustee of the Endowment Fund. One of the objectives of the Endowment Fund is to apply income, as the Trustee considers fit, for the general purpose of the College.

ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT FUND

TRUSTEE’S REPORT Year ended 31 July 2025

ACHIEVEMENTS AND PERFORMANCE

Unrestricted income for the year ended 31 July 2025 was £2,567,804. Of this £2,282,278 was derived from ABRSM distribution, legacies and donations and the balance of £285,526 arose from investments held both as part of the permanently endowed capital and unrestricted funds of the charity and bank balances held as both endowed capital and undistributed income. Gains on unrestricted investments were £119,521 and after accounting for charitable activities and legal fees of £3,035,984 and investment management fees of £8,980 and along with a transfer of restricted funds of £735,358, relating to previous completed restricted projects, a surplus of £377,719 was added to previously accumulated surpluses.

Restricted income of £1,443,008 arose during the year. Of this £1,316,729 was derived from grants, donations and legacies which were allocated by the donor for specific purposes and the balance of £126,279 from investments and bank balances held. Gains on restricted investments were £111,655 and after accounting for charitable activities and bank charges of £1,228,705, investment management fees of £10,401 and a transfer of completed projects to unrestricted funds of £735,358, a deficit of £419,802 was deducted from previously accumulated surpluses.

Gains on endowment investments were £80,222 and after accounting for these and investment management fees of £6,027 the value of the Endowment Fund increased to £1,345,843 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 £17m, 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.

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 W1M 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 +8.9% (+8.8% Jellis Portfolio) after fees. The portfolio marginally underperformed the short-term benchmark over the 12 months, which

ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT FUND

TRUSTEE’S REPORT Year ended 31 July 2025

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 +12.9% 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 +6.1% 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

It is the policy of the Trustee to seek to maintain undesignated unrestricted funds, which are the free reserves of the charity, at a level of £1,000,000 which would enable the Trustee to support the Royal Northern College of Music for a further year in the event that the revenues of the charity should decline or fail. Undesignated unrestricted funds were £10,441,126 at 31 July 2025.

The College will endeavour to meet the targets set out above over the period of the next two years both by reviewing its expenditure policies and reviewing, and where necessary, changing the type and mix of investment vehicles used. This will be achieved while still complying with regard to the aims and objectives of the Fund.

Restricted funds held for specific purposes were £3,277,702 at 31 July 2025.

Endowed funds are permanent endowments to be held indefinitely were £1,345,843 at 31 July 2025.

FUTURE DEVELOPMENTS

The accumulated unrestricted funds at 31 July 2025 amounted to £12,716,126 of which £2,275,000 is classed as designated funds and relates to the holding of the share in the Associated Board of the Royal Schools of Music. The Trustee intends further to continue to support the College’s new building projects and to provide support for selected activities of the College and for its students.

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

ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT FUND

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

Under charity law, the Trustee is 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.

ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT FUND

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

Opinion

We have audited the financial statements of The Royal Northern College of Music Enowment 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.

ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT 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:

ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT 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.

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

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
Note Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
Funds Funds Funds Funds Funds Funds
Restated Restated
£ £ £ £ £ £ £ £
INCOME
Income from generated funds
Voluntary Income 2,282,278 1,316,729 - 3,599,007 1,155,153 1,172,794 - 2,327,947
Investment Income 285,526 126,279 - 411,805 292,144 144,814 - 436,958
Total Income 2,567,804 1,443,008 - 4,010,812 1,447,297 1,317,608 - 2,764,905
EXPENDITURE
Cost of raising funds
Investment management costs 8,980 10,401 6,027 25,408 10,671 12,407 7,163 30,241
Charitable activities 2 3,024,893 1,228,705 4,253,598 2,006,204 406,501 2,412,705
Other expenditure -
Audit/Legal fees 10,800 10,800 11,700 11,700
Bank charges 291 291 266 266
Total Expenditure 3,044,964 1,239,106 6,027 4,290,097 2,028,841 418,908 7,163 2,454,912
NET INCOME/(EXPENDITURE) FOR THE YEAR BEFORE
INVESTMENT GAINS AND LOSSES (477,160) 203,902 (6,027) (279,285) (581,544) 898,700 (7,163) 309,993
Gains on revaluations and disposals of investments held for charity use:
Gain on sale of investments 48,051 225,572 32,252 305,875 117,104 116,296 78,600 312,000
Less: Previously accounted for as an Unrealised (gain) (23,488) (243,522) (15,765) (282,775) (94,244) (100,938) (63,256) (258,438)
Realised from investments 24,563 (17,951) 16,487 23,099 22,860 15,359 15,344 53,563
Unrealised from investments 94,958 129,605 63,736 288,299 200,432 262,243 134,529 597,204
TOTAL INVESTMENT GAINS 119,521 111,654 80,222 311,398 223,292 277,602 149,873 650,767
NET INCOME/(EXPENDITURE) FOR THE YEAR (357,639) 315,556 74,195 32,113 (358,252) 1,176,302 142,710 960,759
Transfer of Restricted Funds to Unrestricted 735,358 (735,358) 341,508 (341,508)
NET MOVEMENTS IN FUNDS FOR THE YEAR 377,719 (419,802) 74,195 32,113 (16,745) 834,794 142,710 960,759
TOTAL FUNDS AT 1 AUGUST 12,338,407 3,697,504 1,271,648 17,307,559 12,355,152 2,862,710 1,128,938 16,346,799
TOTAL FUNDS AT 31 JULY 8 12,716,126 3,277,702 1,345,843 17,339,672 12,338,407 3,697,504 1,271,648 17,307,559

10

All amounts derive from continuing activities.

BALANCE SHEET

Year ended 31 July 2025

BALANCE SHEET
Year ended 31 July 2025
Note As at 31 July 2025 As at 31 July 2024
Restated
£ £ £ £
FIXED ASSETS
Investments
Quoted: at market value 3 3,704,876 4,392,341
Unquoted: ABRSM at historical 2,275,000 2,275,000
cost 5,979,876 6,667,341
CURRENT ASSETS
Debtors 4 827,224 1,614,953
Cash at bank and in hand 10,550,270 9,046,858
11,377,494 10,661,811
CURRENT LIABILITIES
Accruals 17,699 21,592
NET CURRENT ASSETS 11,359,796 10,640,219
TOTAL NET ASSETS 17,339,672 17,307,559
CAPITAL FUNDS
Endowment fund 5 1,345,843 1,271,648
INCOME FUNDS
Restricted 6 3,277,702 3,697,504
Unrestricted
General funds 7 10,441,126 10,063,407
Designated funds 7 2,275,000 2,275,000
15,993,829 16,035,911
TOTAL FUNDS 8 17,339,672 17,307,559

Approved and authorised for issue by the Trustee on 26 Nov 2025 and signed as authorised on their behalf by

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 there is reasonable assurance of receipt 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 the following criteria are met:

Investment income

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

12

NOTES TO THE ACCOUNTS

Year ended 31 July 2025

1 ACCOUNTING POLICIES (continued)

Expenditure

Direct charitable expenditure

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

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 the Royal Northern College of Music and the Junior School at 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.

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 unquoted investment in the associate, ABRSM is stated at historical cost less impairment. The RNCM Endowment Fund holds a 25% share in the ABRSM.

Charitable commitments

Commitments which are legally binding on the Trustee are accounted for as resources expended in the statement of financial activities. Where the promise of financial support is not binding on the Trustee, such intentions are accounted for by a transfer to a designated reserve. Activities that are to be wholly financed from future income do not form part of such designation and are disclosed in a note to the accounts.

Associated Undertaking

The unquoted investment in the Associated Board of the Royal Schools of Music (ABRSM) is valued by the Trustee at cost, which is considered for impairment. The investment represents a quarter share in the charitable company.

Taxation

The Royal Northern College of Music Endowment Fund is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it 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.

13

NOTES TO THE ACCOUNTS Year ended 31 July 2025

1 ACCOUNTING POLICIES (continued)

Cash Flow

The financial statements of the Endowment 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.

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.

14

NOTES TO THE ACCOUNTS Year ended 31 July 2025

2 GRANTS PAYABLE

GRANTS PAYABLE
Year Ended 31 July 2025 Year Ended 31 July 2024
Unrestricted Restricted **Total ** Unrestricted Restricted Total
Funds Funds Funds Funds
£ £ £ £ £ £
Projects and Events
- Payable to Individuals 18,893 36,241 55,134 5,604 255,363 260,967
- Payable to Institutions 6,000 1,192,464 1,198,464 600 151,138 151,738
RNCM Grant 3,000,000 - 3,000,000 2,000,000 - 2,000,000
3,024,893 1,228,705 4,253,598 2,006,204 406,501 2,412,705
INVESTMENTS HELD AS FIXED ASSETS
Year Ended 31 July 2025 Year Ended 31 July 2024
£ £
Opening market value 4,392,341 4,971,109
Additions at cost 1,606,425 2,066,766
Disposals at opening market value (2,504,605) (1,991,841)
Gifted Assets 50,085 -
Unrealised gains 278,099 597,204
Movement on cash (117,469) (50,897)
Bond classified as cash - (1,200,000)
Closing market value 3,704,876 4,392,341
Historical cost 2,746,514 3,390,965
Unquoted investment
Associated Board of the Royal Schools of Music 2,275,000 2,275,000

3 INVESTMENTS HELD AS FIXED ASSETS

Quoted investments are valued at market value at the year end. The unquoted investment in the Associated Board of the Royal Schools of Music (ABRSM) is valued by the Trustee at cost. The investment represents a quarter share in the charitable company. The Trustee performed an impairment review in 2024/2025 and considers that there is no requirement to impair its investment in ABRSM.

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
£
£
621,707
614,934
111,193
128,927
230,365
281,144
921,737
1,554,933
208,469
319,575
184,062
260,044
368,525
444,863
100,456
100,456
2,746,514
3,704,876

15

NOTES TO THE ACCOUNTS Year ended 31 July 2025

4 DEBTORS

DEBTORS
Year Ended 31 July 2025 Year Ended 31 July 2024
Investment income, accrued interest £ £
and tax recoverable 127,224 114,953
Inter-company loan 700,000 1,500,000
827,224 1,614,953

This inter-company loan is a programme-related investment recognised at historical cost. It is repayable on demand with nil interest and nil security.

5 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.

6 MOVEMENT IN RESTRICTED FUNDS

Restricted funds represent grants, donations and legacies received which are allocated by the donor for specific purposes.

Chris Rowland Masterclass
Digitisation Project
Dullator - JRNCM Bursary
Engage Cumbria
Foundation for Sports and Arts
Garfield Weston
Haworth Charitable Trust
Instrument Loan Scheme
Junior Strings Project Instruments
National Heritage Archive Project
Organ Refurb
Piano Campaign
Piano Competition
RNCM Engage/Pathfinder
RNCM50 Fund/ Gala Dinner
RNCM Transitions
Student Support
Young Artists
Other
Jellis Bequest		 Balance
01/08/23
Income
Investment
Returns
Expenditure
Transfers
Balance
31/07/24
Income
Investment
Returns
Expenditure
Transfers
Balance
31/07/25
Restated
Restated
£
£
£
£
£
£
£
£
£
£
£
53,905
-
-
-
-
53,905
-
7,466
-
-
61,371
-
119,438
-
-
-
119,438
19,148
19,195
-
(157,781)
-
37,500
-
-
-
-
37,500
-
5,194
-
-
42,694
-
290,000
-
45,192
-
244,808
270,000
47,397
172,615
-
389,589
-
-
-
-
-
-
-
3,179
-
(3,179)
-
-
-
-
-
-
-
-
10,388
-
(10,388)
-
17,000
6,000
-
-
-
23,000
6,000
4,017
-
-
33,017
21,071
650
-
-
-
21,721
3,979
2,140
10,250
-
17,590
21,303
-
-
-
-
21,303
-
2,951
-
-
24,254
11,845
19,388
-
-
-
31,233
-
3,664
4,778
(30,119)
-
10,000
274,400
-
-
-
284,400
-
39,392
-
-
323,792
-
75,400
-
-
-
75,400
659,440
-
734,840
-
-
308,194
-
-
84,283
-
223,912
-
30,131
6,376
-
247,667
481,667
172,991
-
1,855
(290,508)
362,295
86,021
101,987
2,500
(411,479)
136,324
119,011
24,000
-
7,627
(51,000)
84,384
38,500
20,443
26,292
(89,443)
27,592
-
-
-
-
-
-
78,500
10,873
-
-
89,373
33,020
15,150
-
-
-
48,170
-
6,672
-
-
54,842
45,099
86,203
-
-
-
131,302
55,008
20,238
40,195
-
166,353
497,775
196,563
15,913
115,928
-
594,323
193,494
(326,810)
23,143
(32,968)
404,896
1,205,321
37,425
261,689
164,024
-
1,340,411
32,918
103,137
218,117
-
1,258,348
2,862,710
1,317,608
277,602
418,908
(341,508)
3,697,504
1,443,008
111,654
1,239,106
(735,358)
3,277,702

Transfers are amounts which relate to restricted expenditure made from unrestricted funds. A transfer is therefore required to reimburse unrestricted funds, see note 11.

16

NOTES TO THE ACCOUNTS Year ended 31 July 2025

7 MOVEMENT IN UNRESTRICTED FUNDS

The Trustee has designated part of the general funds as separate funds representing the amount invested by the Fund in the Associated Board of the Royal Schools of Music.

Associated Board of the
Royal Schools of Music
General Fund
Total unrestricted funds		 Balance
Balance
31-Jul-24
Income
Gains Expenditure
Transfer
31-Jul-25
Restated
£
£
£
£
£
£
2,275,000
-
-
-
-
2,275,000
10,063,407
2,567,804
119,521
3,044,964
735,358
10,441,126
12,338,407
2,567,804
119,521
3,044,964
735,358
12,716,126

8 ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS

Year Ended 31 July 2025 Year Ended 31 July 2024
Endowment Restricted Unrestricted Total Endowment Restricted Unrestricted Total
Funds Funds Funds Funds Funds Funds
Restated Restated
£ £ £ £ £ £ £ £
Fixed Assets
Investments 1,348,234 1,547,855 3,083,787 5,979,876 1,274,343 2,419,384 2,973,613 6,667,341
Current Assets
Debtors - 31,792 795,432 827,224 - 19,187 1,595,765 1,614,952
Cash (352) 1,701,677 8,848,945 10,550,270 (352) 1,262,991 7,784,219 9,046,858
Current Liabilities
Creditors and
accruals (2,039) (3,621) (12,038) (17,699) (2,343) (4,058) (15,191) (21,592)
1,345,843 3,277,702 12,716,126 17,339,672 1,271,648 3,697,504 12,338,407 17,307,559

9 TAXATION

The Royal Northern College of Music Endowment 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 RELATED PARTY TRANSACTIONS AND CONNECTED CHARITIES

The Royal Northern College of Music is the sole Trustee of the Endowment Fund. One of the objectives of the Endowment Fund is to apply income, as the trustee considers fit, for the general purpose of the College.

Grant payments made to RNCM in year amounted to £4,118k, income received from RNCM in year amounted to £192k and an intra-group loan of up to £3m was available to RNCM and £700k was outstanding at year end.

ABRSM, as an associate of the Royal Northern College of Music Endowment Fund, is a related party. £1,750k was received in year from ABRSM as a distribution of surpluses generated by ABRSM.

17

NOTES TO THE ACCOUNTS Year ended 31 July 2025

11 Prior Year Adjustment

Following a review of restricted funds, it was identified that £477,488 of the funds had been expended in previous accounting periods and were therefore incorrectly carried forward at 1 August 2024. As this is material to the financial statements, a prior year adjustment has been processed in line with the requirements of FRS 102. Following investigation, it was identified that £341,508 had been expended in the year to 31 July 2024 and £135,940 had been expended in periods prior to 1 August 2023.

The impact of this prior year restatement is set out as follows:

At 31 July 2024
Unrestricted funds carried forward
Restricted funds carried forward
Endowment funds carried forward
Total funds carried forward
At 1 August 2023
Unrestricted funds carried forward
Restricted funds carried forward
Endowment funds carried forward
Total funds carried forward
Impact on individual funds:
Balance at 31 July 2024
RNCM Engage/Pathfiner
RNCM 50 Fund/Gala Dinner
Balance at 1 August 2023
Foundation for Sports and Arts
Garfield Weston
Various		 As previously
stated
Restatement
As restated
£
£
£
11,996,899
341,508
12,338,407
4,039,012
(341,508)
3,697,504
1,271,648
-
1,271,648
17,307,559
-
17,307,559
12,219,212
135,940
12,355,152
2,998,650
(135,940)
2,862,710
1,128,937
-
1,128,937
16,346,799
-
16,346,799
As previously
stated
Restatement
As restated
£
£
£
652,803
(290,508)
362,295
135,384
(51,000)
84,384
788,187
(341,508)
446,679
As previously
stated
Restatement
As restated
£
£
£
22,952
(22,952)
-
75,000
(75,000)
-
535,762
(37,988)
497,774
633,714
(135,940)
497,774

18