THE JUNIOR SCHOOL AT THE ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENTTRUST Registered Charty Number 71)0664 Annual Report 31 August 2024 THEJUNIOR SCHOOL AT THE ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT TRUST CONTENTS OF THE ANNUAL REPORT Page Legal and Administrab've Details Trustees, Report Trustees, statement of responsibilities Independent Examinetrs RetM)rt statement of Financial Ath-vities Balance Sheet Notes to the Accounts 8-12 THE JUNIOR SCHOOL AT THE ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT TRUST LEGAL STATUS The charity was formed as a trust under deed dated 31 August 1988. Registered with the Charty Commission - Registration Number 700664. ADDRESS 124, Oxford Road, Manchester M13 9RD TRUSTEES Martin Duckworth MDes Nigel Hirst (to Nov 2023) Aileen Hoare David Hoult Karen Humphreys (fmm Nov 2023) Alex Mayer John Turner Christine Wardle Anna Wright The Junior School at the Royal Norihern College of Music has the right by deed to appoint and remove trustees. Providing there are more than three trustees a trustee may by deed retire. SECRETARYto theTRUSTEES Aled Tudor FINANCE OFFICER Paul Bevan FCCA BANKERS Royal Bank of Scoland 38 Mosley St Manchester M61 OHW INDEPENDENT EXAMINER J Hardy FCCA 13 Wndale Dr Manchester M35 OPY INVESTMENT ADVISERS Castlefield 111 Piccadilly Manchester M12HY SOLICITORS Mills & Reeve 8th FlcK)r 1 New York St Manchester M14AD THE JUNIOR SCHOOL AT THE ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT TRUST TRUSTEES. REPORT The Trustees present their report and the audited financial statements for the year ended 31 August 2024. Legal and administrative information set out in page 1 forms part of this report. The financial statements Comply with the current statutory requirements, the Ttust Deed and the Statement of Recommended Practice - Accounb'ng and Reporting by Chanties. THE AIMS AND HISTORY OF THE ENDOWMENTTRUST FUND The Junior School at the Royal Northem College of Music merged with the Royal Northem College of Music on 1 September 2002. The Endowment Funds (value £6,039), Restricted Funds (value £55,522) and the Unrestrrcted Funds of the Junior School held as fixed assets (value £5,033) totaling £66,594 were transferred to the Endowment Trust. The trading activities together wrth the remaining Unrestricted Funds of the Junior School were transferred to the Royal Northem College of Music The education of the general public in the study. appreciats'on and practice of music and the allied arts by endowing, furthering and supporting the objects and work of the Junior School at the Royal Northern College of Music (JRNCM) in such a manner as the Endowment Trustees shall in their absolute discrets.on think fit. The Trustees confirm that they have ￿fer￿d to the guidan￿ contsined in the Charity Commission's general guidan￿ on public benefft when reviewing Ihe Trusys aims and objectives and in planning future activities and setting the grant making policy for the year. GRANT MAKING POLICY The JRNCM considers applications for bursaries from all students who have been offered a place to study at the College. All students are made aware of the existence of the fund and the application prO￿dureS at iheir audition. Applications for support are considered at a formal committee meetj'ng. The Trustees invite applications for assistan(% from the JRNCM in part to contribute towards the support of bursaries butalso in support of other projectswhich, in their opinion, enhan￿ the profile ofthe JRNCM. There is no private benefit accNing either to the Trustees or the members of the College who submit applications for assistan￿. REVIEW OF THE FINANCIAL STATEMENTS The funds of the charity are analysed be￿een endowment. restricted and unrestricted reserves. Unrestricted income of £19,379 and expenditure of £23,382 has resulted in a loss for the year of £4,003 which, together with net investment gains of £5.511, results in a surplus for the year of £1,508 and an accumulated surplus carried forward into 202412025 of £200,109. Restricted income of £6.369 and expenditure of £3.320 has resulted in a surplus of £3,049 which. together with net investment gains of £2.374 results in a surplus for the year of £5,423 and an accumulated surplus carried forward into 2024J2025 of £70,933. Endowment Fund net investment gains of £9.755 results in a surplus for the year and an accumulated surplus carried forward into 2024r2025 of £202.110. THE JUNIOR SCHOOL AT THE ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT TRUST TRUSTEES. REPORT RESERVES POLICY It is the policy of the trustees to seek to rnaintain undesignated unrestricted fund5, which are the free reserves of the charity, at a level which equates to one years, expenditure. Undesignated unrestricted funds were maintained at levels in excess of this throughout the year as the trustees expect to be in deficit position in coming years. This will reduce the free reserves FUTURE DEVELOPMENTS The support from the Wolfson Foundation to ihe Junior RNCM amounts to £15,mO and the DfES grants. awarded to 40 students of the Junior RNCM, providing support of £146,756. An Access fund from the RNCM of up to £41,000 has been agreed to provide bursary 5UPkK)rt and the purchase of selected instruments for the Junior RNCM. AVAILABILITY AND ADE UACY OF ASSEfs OF EACH OF THE FUNDS In the opinion of the trustees the assets of each fund are available and adequate to ffiJlfil their obligations. There are no contingent liabilities or guarantees. See note 1 for an explanation of the types of fund rnaintained by the charity. INVESTMENT POWERS The Trustees have the same unres￿ted powers of investing of trust monies as if they were the absolute beneficial owners of the money invested. TRUSTEES The trustees who served during the year are noted on page 1. No trustee had any interest in the charity- By Order of the Trustees Aa 'd3x Chair of the Trustees THE JUNIORSCHOOL AT THE ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT TRUST TRUSTEES, STATEMENT OF RESPONSIBILITIES Under charity law, the trustees are resFM)nsible for p￿paring the Trustees, Annual Report and the financial statements for each financial yearwhich show a true and fair view of the state of affairs of the charity and of the excess of expenditure over income for that period. In preparing these financial statements, generalty accepted ￿UntIng Pract￿ entails that the trustees.. select suttable accounting policies and then apply them consistently- make judgements and estsmates that are reasonable and prudent" state whether the recommendations of the Statement of Recommended practi￿ have been followed, subject to any material departures disclosed and explained in the financial statements" slate whether the financial statements comply with the trust deed, subject to any material departures disclosed and explained in the financial statements., prepare the financial statements on the going ¢on¢ern basis unless rt is inappropriate to presume that the charity will continue its *ivities. The trustees are 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 ts'me, and to enable the trustees to ensure tha( where any statements of accounts are prepared by them under section 132 of the Charities Acl 2011, those statements of accounts comply with the requirements of regulations under that provision. They 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. Independent examinetrs report to the trustees of The Junior School at the Royal Northern College of Music Endowment Trust. Charty No. 700664 I report on the accounts of the Trust for the year ended 31 August 2024, which are set out on pages 6 to 12. Responsibilities and basis of report As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act,). I report in respect of my examination of the Trust's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Gharity Commission un(Jer section 145(5)(b) of the Act. Independent examinefs statement I have completed my examination. I ￿nfIrM that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect" accounting records were not kept in respect of the Trust as required by section 130 of the Act. or 2. the accounts do not accord with those records" or 3 the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair view which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Miss Julie Hardy (FCCA) Association of Chartered Certified Accountants 13 Wyndale Drive Failsworth Manchester M35 OPY 03 March 2025 THE JUNIOR SCHOOL ATTHE ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THEYEAR ENDED 31 AUGUST2024 Unr8StrictedRestrictedEndowment Note Funds Funds Funds Total 2024 Total 2023 INCOMING RESOURCES Donations, legacies and grants Investment income Bank interest Other income 12.820 2,893 1,668 12,820 9,262 1,668 61,270 8,507 505 6,369 TOTAL INCOMING RESOURCES RESOURCES EXPENDED Direct charitable expenditure Grants payable Other expenditure Management and administration 20,818 3,320 24,138 20,980 TOTAL RESOURCES EXPENDED NET INCOMING RESOURCES FOR THE YEAR 954 OTHER RECOGNISED GAINS AND LOSSES Gains on revaluations and disp¢)sab of investments held for charity use: Profit on sale of investments Less: previously accounted for as unrealised profit Realised losses from investments Unrealised gainl(loss) on investments TOTAL INVESTMENT GAINS AND LOSSES NET MOVEMENT IN FUNDS 1,508 5,423 9.755 16,686 26,623 TOTAL FUNDS brought forward 198 601 192 355 456 466 TOTAL FUNDS carried forward 200 109 70 933 202 110 473 152 456 466 All the above results derlve from continuing operations THE JUNIOR SCHOOL AT THE ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT TRUST BALANCE SHEET AS AT 31 AUGUST 2024 Note 2023 2023 FIXED ASSETS Musical Instruments Investments at Market Value 9,295 365,478 10,199 347,838 374,773 358,037 CURRENT ASSETS Debtors Cash at bank and in hand 3,261 95,368 5,075 94,034 98,629 99,109 CURRENT LIABILITIES Creditors and accruals 250 680 NET CURRENT ASSETS 98,379 98.429 TOTAL ASSETS LESS CURRENT UABILITIES 473.152 456,466 FUNDS Endowment funds Restricted funds Unrestricted funds 202,110 70,933 200.109 192,355 65,510 198,601 10 473.152 456.466 The financial statements were approved on 1210312025 Aileen Hoare A Q. Vlo( Anna Wrrght THE JUNIOR SCHOOL AT THE ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT TRUST NOTES TO THE AcCou￿rS FOR THE YEAR ENDED 31 AUGUST 2024 ACCOUNTING POLICIES The financial ststements are prepared in accordance with the Statement of Recommended Practice 'Accounting and Reporting by Charities,, issued in March 2005, and the Charities Act 1993 and applicable accounting standards. The part￿ular xcountin9 policies adopted are described below. Accounting Convention The financial statements have been prepared under the historical cost convention as modrfied by the revaluation of investments. Incoming Resources All income is recognised in the statement of financial activities when the condttions for receipt have been met and there is reasonable assurance of receipL Wthere a grant is received relating to a future accounting period, Ihe statement of financial activities shows the gross amount received together wtth the changes in amount deferred to future accounting periods. The following accounting policies are applied to income: Donations. legacies and grants Donations, legacies and grants are accounted for when conditions for their receipt have been met. Material items receivable at the year end are included at an estimated value of th8 amount to be re￿ived. Investment incorne Investment income is accounted for when re￿1vable and includes any related tax recoverable. Direct Charitable Expenditure Direct charitable expenditure includes all expenditure directly related to the objects of the harity and comprises the following= Gffints Payable Grants payabfe are accounted for when the conditions for payment have been met. Other Expenditure Other expenditure is management and administration costs incurred in the management of the charity's assets, organisational administration. and compliance with constrtutional and statutory requirements. Musical Instruments Musical instruments, except for strings. are depreciated at a rate of 10%. Depreciation is provided on cost in equal annual instalments over the estimated useful lives of the assets_ Depreciation is not provided on string instruments since the estimated remaining useful economic life of the tangible f￿ed assets exceeds 50 years and any depreciation charge would be deemed immaterial. The carying value of these assets are subject to an annual impairment review. THE JUNIOR SCHOOLAT THE ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024 Fund Accounting The charity maintains various types of funds as follows: Endowment Funds Endowment funds represent grants. donations and legacie5 received where the donor has stipulated that the income may be used for general purposes, but the capitsl must be retained. Restncted Funds Restricted funds represent grants, donations and legacies re￿iVed which are allocated by the donor for specffic purposes and income derived from permanent endowments given for specific purposes. UnrestriGted Funds Unrestricted fijnds represent funds which are expendable at the d iscretion of the trustees in the furtheran￿ of the objects of the charity. Investments Investments are stated at market value. Realised and unrealised gains and losses are shown separately in the appropriate section of the statement of financial activits'es. GRANTS PAYABLE 2024 2023 Bursaries Prizes Other 23 21,812 1,840 21 41 19,065 1,665 250 24,138 20,980 OTHER EXPENDITURE 2024 2023 Net incoming resources for the year are stated after charging.. Independent examiner remuneration Depreciation Other expenditure 250 904 1,410 250 904 2,432 2,564 3,586 THE JUNIOR SCHOOL AT THE ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024 MUSICAL INSTRUMENTS 2024 2023 Net book value at 1 September Additions 10.199 11,103 Charge for the year (904) (904) Net book value at 31 August 9.295 10.199 INVESTMENTS 2024 2023 Market value at 1 September Additional investment Unrealised gainl(loss) 347,508 371,060 17,640 (23,222) Market value at 31 August 365,148 347,838 Historical Cost at 31 August 252,508 252,508 DEBTORS 2024 2023 Other Debtors 3,261 5,075 CREDITORS AND ACCRUALS 2024 2023 Other Creditors 250 680 MOVEMENT IN ENDOWMENT FUNDS Endowment funds comprise the following reSoUr￿S which have been made available and which the trustees are legally required to invest or retain for the purposes of the charity. All endowment funds are permanent as the trustees have no power to convert them into income and apply them as such. Expenditure, Gains and Balance Losses CIFwd Balance Blfwd Income Rose Goulding Fund Junior School Fund 120.891 71.464 6,131 3,624 127,022 75,088 192,355 9,755 202,110 10 THE JUNIOR SCHOOL AT THE ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENTTRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024 MOVEMENT IN RESTRICTED FUNDS Restricted funds comprise the following unexpended donations and grants given for specific purposes and income derived from pemanent endowments gNen for specific purposes. Expenditure. Gains and Balance Losses CIFwd Balance Income Rose Goulding Fund Louise Lamegeon Fund Helen Knott Fund Shirley Blakey Fund Alina Mills Memorial Fund lan McPherson Memorial Fund Soroptomists Prize John Ellis Memorial Prize Junior School Fund 1,129 3,531 33.245 943 4,233 711 988 14,988 5,742 110 343 3,232 92 412 69 96 1,457 558 (1 ,959) {122) 804 (255) (97) (24) (4) 503 208 {720) 3,752 37,281 780 4,548 756 1,080 16,948 6,508 65.510 6.369 (946) 70,933 10. MOVEMENT IN UNRESTRICTED FUNDS Unrestricted funds comprise Ihe following.. Expenditure. Gains and Balance Losses CIFwd Balance Blfwd Income General Fund 198,601 19,379 (17,871) 200,109 11. ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS EndowmentRestrictedUnrestricted Funds Funds Funds Total 2024 Musical Instruments Investmenls 9,295 9,295 114,175 365,478 202,110 49,193 Current Assets Debtors Cash at bank and in hand Current liabilities 3,261 3,261 73,628 95,368 (250) (2501 21,740 202.110 70,933 200,109 473,152 THE JUNIOR SCHOOL AT THE ROYAL NORTHERN COLLEGE OF MUSIC ENDOWMENT TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024 12. RELATED PARTYTRANSACTIONS The Junior School at the Royal Northem College of Music Endowment Trusts objects've is to apply income. as the trustees considers fit. for the bursary and scholarship support of Junior School students at the Royal Northern College of Music. During the year the Endowment Fund made bursary and scholarship payments to the College in the amount of £21,812 (£18,662 unrestricted funds, £3,150 restricted funds). 12