Registered Charity Number: 108024 THE ROYAL BELFAST ACADEMICAL INSTITUTION ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023
THE ROYAL BELFAST ACADEMICAL INSTITUTION CONTENTS Section Page Reference and administrative details of the charity, its Governors and advisers for the year ended 31 March 2023 Governors, report for the year ended 31 March 2023 Independent Auditor's report to the Board of Governors of The Royal Belfast Academical Institution 17 Statement of Flnancial Activities for the year ended 31 March 2023 23 Balance Sheet at 31 March 2023 24 Statement of Cashflows for the year ended 31 March 2023 26 Notes to the Accounts for the year ended 31 March 2023 27
THE ROYAL BELFAST ACADEMICAL INSTrriJrioN REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023 Board of Governors 2022123 R.M. Howard, B.Sc., F.C.A. (Choirman) C.D. Gowdy, LL.B., (Vice Chairman) W.R. Wilson, LL.B. (Hon. Secretary) A.1. Adair, LL.B., F.R.C.S.I. B.J. Cheevers, 8.A. l.S. Corry, M.D., F.R.C.S. (Orth), Dip.Sports.Med. D.S. Croft, M.Sc., B.A., M.1. A.G. Dick M8 Bch MRCGP P.J. Dolaghan, P.G.C.E., (l.T.) C. Finnegan, B.A, M. Fitch, LL.B., F.C.A. 5.T. Gowdy, LL. C.J. Johnston, 8.A., F.C.A. W.J. Keith, O.B.E., M.Sc., B.Ed., Dip.G.&C. J.C. Kernohan, B.A. K.0. Latimer, O.B.E., M.A., Dip.Lib.Stud., F.C.L.l.P. W.M.W. McDowell, F.R.l.C.S. G. Parkes, M.B.A., Chartered Fellow C.l.P.D. J.E. Rutherford, B.Sc., M.A. M. W. Shaw 8En8. M.B.A. C.Eng. F.l.Struct.E. M.l.C.E. M.l.E,l. P. Shields, B.Sc,, P.G.D. J.D. 5telfox, M.B.E., D.L., R.l.B.A., F.R.l.A.l. W.A. Wilson, F.R.l.C.S. J.J. Wylie, M.A., F.C.A.
THE ROYAL BELFAST ACADEMICAL INSTITUTION REFERENCE AND ADMINISTRATIVE DEfAILS OF THE CHARITY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023 Co-opted Governor5 Sir D. Sterling, KCB R.W. Magee Bsc MA PGCE PQH{NI) Parent Governors C. Moran B.A., M.A., M.Phil., Ph.D. C. Holmes B.Sc., M.A., F.C.A. Teacher Governors S. Archibald, M.Eng., P,G.C.E. J.B. Peak, B.A., P.G.C.E. Prlnclpal J. Williamson, M.A. (Oxon), N.P.Q.H. Bursar and Secretary to the Board of Governors C. Moore, B.A., F.C.A. Registered Office The Royal Belfast Academical Instltution College Square East Belfast BTI 6DL Charlty Number 108024
THE ROYAL BELFAST ACADEMICAL INSTITiJfioN REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023 External Audltor Moore (N.I.) LLP 7 Donegall Square North Belfast BTI 5GB Internal Audltor ASM Glendinning House 6 Murray Street Belfast BTI 6DN Bank Danske Bank Donegall Square West Belfast BTI 6JS Investment Managers Abrdn on behalf of Northern Ireland Central Investment Fund for Charities M&G Investments Rathbones Investment Management Sollcltors Cleaver Fulton Rankin 50 Belford Street Belfast BT2 7FW
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS, REPORT For the year ended 31 March 2023 The Governors, who are also the Trustees for the purposes of Charity Law, present their annual report and accounts for the year ended 31 March 2023. The accounts have been prepared in accordance with the accounting policies set out in Note I to the accounts and comply with the Institution's Scheme of Endowment and "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 (FRS102) {effective l January 2019)." History The Institution was founded by the public subscription of the citizens of Belfast in the early years of the nineteenth century. Members of the Institution are those who have subscribed to the Institution. Membership consists of two classes: Class l & Class11. The Class of membership held is dependent on the amount of the subscrlptlon made by the member. A Board of Governors is appointed by the Members of the Institution to govern and manage the Institution. The foundation stone of the John Soane designed building was laid in July 1810. Belfast Academical Institution opened on l February 1814, as both a school for pupils and a college for students. On the occasion, Dr. William Drennan, a founder, spoke of what he envisaged as the main purpose of Inst, which was to "diffuse useful knowledge, porticularly among the middling orders of society, as one of the necessities rather than of the luxuries of life," not to have a good education only the portion of the rich and the noble, but as a potrimony of the whole people". From 1831 untll today, the School's full title has been, The Royal Belfast Academlcal Institution (RBAI). RBAI currently has over one thousand pupils on the main site and over one hundred pupils in the Preparatory Department, Inchmarlo. About one hundred and fifty new pupils enter RBAI every year from a wide variety of backgrounds: social, cultural and academic. The school encourages excellence and participation and ensures that every boy 15 supported pastorally so that he can perform to his potential. The School became a charity registered with the Charity Commission for Northern Ireland on 19 April 2021 with charity registration number 108024.
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS, REPORT For the year ended 31 March 2023 Objectives and activlties a) Purpose The purpose of the School includes improving education standards, enhancing opportunities, and equipping young men to take their place in society. b) Activities for achieving the purpose The Royal Belfast Academical Institution carries out its purposes in the following ways: By establishing and maintaining a preparatory school for 5 to 11-year-old boys in Belfast. By establishing and malntalnlng a post primary voluntary 8rammar school for I,OSO boy5 in Central Belfast. By providing educatlon, as prescribed by the Department of Education, and thereby equipping pupils to sit the prescribed examinations for admission to tertiary education, to enter the labour market and generally to enable pupils to take their place in society as good citizens. By providing sporting and recreational extra-curricular activitles. By repairing and keeping in good order repair and condition the School estate so that it is fit for the purpose for which it is intended. By employing teaching staff to deliver the curricula of the preparatory school and the post primary grammar school. iv. vi. c) Public Beneflt Declaration The direct benefits which flow from the purpose include improved education standard5, enhanced opportunities, and the equipping of young men to take their place in society. All of these benefit the public as a whole. The benefits are demonstrated through the examination results of students following testing, regular evaluation of services and the feedback from students and parents. The benefits are further demonstrated by the large number of boys from every section of society who progress to tertiary education or into employment on leaving school. The beneficiaries of the charity's activities are the boys who receive their education at the School and society as a whole. There is no private benefit flowing from the purpose.
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS, REPORT For the year ended 31 March 2023 Achievements and Performance Establishing and maintaining a preparatory school for 5 to 11-year-old boys in Belfast The Inchmarlo Preparatory Department was established in 1917 and is continuing to provide an education for 5-11 year old boys. By establishing and maintalning a post primary voluntary grammar school for 1.050 boys in Central Belfast. The School opened in 1810 and is continuing as a post primary voluntary Grammar School on the College Square East Site. By provldlng education, a5 prescribed by the Department of Educatlon, and thereby equipping pupils to slt the prescrlbed examination5 for admi55ion to tertiary education, to enter the labour market and generally to enable puplls to take thelr place In society as good citlzens. The School is currently providing education to equip pupils to sit the prescribed examinations for admission to tertiary education, to enter the labour market and generally to enable pupils to take their place in society as good citizens. iv. By providlng sporting and recreational facllltles for extra-curricular activities. The School provides sporting and recreational facilities acros5 a wide range of clubs and societies. By repalring and keeping in good order repalr and condition the School estate so that it15 fit for the purpose for which It Is Intended. The Board of Governors continues to invest in a series of capital projects to support the School to deliver its academic and co-curricular objectives. The School does not receive capital grant aid from the Department of Education/Education Authority and is required to raise its own funds to support capital projects. vi. By employing teaching staff to deliver the curricula of the preparatory school and the post primary grammar school. The School employs suitably qualified teachers to deliver the curricula of the preparatory school and the post primary grammar school. The academic and co-curricular achievements are reported to the Board of Governors at every Board meeting.
THE ROYAL BELFAST ACADEMICAL INSTrruTION GOVERNORS, REPORT For the year ended 31 March 2023 Fundraising and generating income RBAI is a category 8 Voluntary Grammar school. The School receives funding from the Department of Education towards teaching and learning, however it does not receive any capital support towards the upkeep of the School estate. Philanthropy, income from investments and fees from parents form a critical element of the School's capital development plan. Fundraising campaigns are overseen by the RBAI Foundation Office. In 2018, the Excellence for All campalgn was launched. The campaign supported three priorities: Transforming Our Campus Sporting Excellence Social Mobility Plans for future periods In order to continue to offer the excellent education that the School has provided for over two hundred years, the Board of Governors has developed a long term vision for the school campus by identifying future needs and priorities of the whole school. The campus vision is to replace the swimming pool and dining hall and ensure all classrooms are fit for purpose. Financial Revlew The financial statements have been prepared on a going concern basis in accordance with the Statement of Recommended Practice {SORP): Accounting and Reporting for Charities {FRS 102). The flnancial statements on pages 23-43 comprise the Statement of Financial Activities, the Balance Sheet, Cashflow Statement and the Notes to the Accounts. The Statement of Financial Activities shows net income before investment losses of £885,706 for the year. The Balance Sheet at 31 March 2023, shows net assets of £40,080,984. The grant funding from the Education Authority, at just over £6.Imillion, represents 62% of our total income of £9.8million. The combined staff costs are £5.9million, equating to 109% of Common Formula Grant fundin& illustrating the challenge of funding the School. Total staff c05t5 represent 70.6% of total expenditure. The increase in fees reflects an annual inflationary increase along with stable pupil numbers at the Main School.
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS. REPORT For the year ended 31 March 2023 Income from the use of premises was higher than even pre-Pandemic income, mainly due to an increased use of the swimming pool. The major challenges faced by the Institution are threefold: Firstly, funding the revenue deficit for the Main School due the insufficient funding by the Department of Education Secondly, ensuring the Preparatory Department remains viable and Thirdly, funding both the maintenance and replacement of buildings on the School Campus. The Board of Governors, through the Finance and General Purposes Committee, will continue to address all three issues and manage the financial affairs of the Institution to ensure a long and secure future for the School. The Board receives regular financial reports including Management Accounts at every Board meeting and prepares budgets, including cash flows and capital plan5 on an annual basis. Going Concern The Board of Governors has considered the School's forecasts and projections. The Governors have a reasonable expectation that the School has adequate resources to continue in operational existence for the foreseeable future. The School, therefore, continues to adopt the going concern basis in preparing its financial statements. The Department of Education has confirmed fundln8 of £5,441,009 for the year 2023124. Investment powers and policies The School's assets must be invested in accordance with the Trustee Act (Northern Ireland) 2001 and the School's own 'Scheme of Endowment,. This is enacted by the Investment Committee through the School's Investment policy. The purpose of the Investments is to provide the School with sufficient income to meet its needs whilst maintaining the value of the capital in real terms. The Schools investments are managed by three fund Managers: M&G Investments, Rathbones Investment Management and Abrdn on behalf of the Northern Ireland Central Investment Fund for Charities {NICIFC).
THE ROYAL BELFAST ACADEMICAL INSTrruTION GOVERNORS, REPORT For the year ended 31 March 2023 Reserves policy The Governors believe that the School needs unrestricted re5enies equivalent to the carrying value of fixed assets, six months working capital outgoing resources, annual capital replacement costs and specific capital project costs. In addition, the School requires investment reserve income to make up shortfalls in the School's annual budget. The recommended level of general unrestricted reserves at 31 March 2023 is £37m comprising of six months working capital, budgeted capital replacement, capital development and investment reserve fund. The general unrestricted reserves at 31 March 2023 were £24.Im. At this level, the Governors feel that they would be able to continue the current activities of the School without major capital projects and are in the process of developing an action plan to increase reserves to meet future capital development. The unrestricted reserves of £38.4m comprise net current assets of £2.3m which are readlly available to fund working capital requirements and the immediate capital needs of the School. The remaining unrestricted reserves comprise investments which could be realised to support the reserves policy. Currently, the School has no borrowings and has a strong asset base, which underpins its activities, however, the Governors recognise that it is imperative that the School works towards building reserves towards the required capital development and maintenance programmes for the School. Amounts attributable to land and buildings and other fixed asset5 will be held as designated resenies as these assets are held for the long term and are not readily disposable. In the financial year ended 31 March 2023 the Governors have allocated an amount of £14.3m as Designated Funds. At the year-end there were capital project budgets approved by the Governors totalling £0.4m and a review of the School Estate is ongoing to ensure the estate is fit for purpose for the next 50 years. The Reserves Policy is monitored and reviewed at least annually. The Governors actively considers the reserves target, in light of capital development and maintenance plans. At 31 March 2023, the School's reserves were £40,080,984 (2022:£ 40,974,077). This comprised of £1,613,875 (2022:£ 1,475,185) restricted funds and £38,467,109 (2022: £39,498,892) unrestricted funds. Tax Status The School is registered as a charity for corporation tax purposes.
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS, REPORT For the year ended 31 March 2023 Structure. Governance and Management Governing Document The Institution is governed by the Scheme of Endowment. A Board of Governors is appointed by the Members of the Institution to govern and manage the Institution. Governors are appointed from within the membership of the Institution. Appointment or election of Governors Representative Governors are appointed to serve as for a term of three years. Co-opted Governors, with a speclalist interest in education are appointed to serve as for a term of three years. Teacher Governors are elected from and by the body of permanent teaching staff in the organisation for a period of 4 years. Parent Governors are elected from and by the body of parents/guardians of pupils enrolled in the School, including the Preparatory Department, for a period of 4 years. The Representative Governors at March 2023 are as follows: l. A.1. Adair, LL.B., F.R.C.S.I. 2. P.J. Dolaghan, P.G.C.E., (l.T.) 3. S.T. Gowdy, LL.8. 4. J.C. Kernohan, B.A. 5. K.0. Latimer, O.B.E., M.A., Dip.Lib.Stud., F.C.L.l.P. 6. W.M.W. McDowell, F.R.l.C.S. 7. P. Shields, B.Sc., P.G.D. 8. J.J. Wylie, M.A., F.C.A. Vacate 2023 9. 1.5. Corry, M.D., F.R.C.S. {Orthl, Dip.Sports.Med. 10. D.S. Croft, M.Sc., B.A., M.l.B. 11. A.G. Dick MB Bch MRCGP 12. C.D. Gowdy, LL.B., (Vice Choirman) 13. W.J. Keith, O.B.E., M.Sc., B.Ed., Dip.G.&C. 14. J.D. Stelfox, M.B.E., D.L., R.l.B.A., F.R.l.A.l. 15. W.A. Wilson, F.R.l.C.S. 16. W.R. Wilson, LL.B. (Hon. Secretary) Vacate 2024 17. C. Finnegan, B.A. 18. B.J. Cheevers, B.A. 19. M. Fitch, LL.B., F.C.A. 20. R.M. Howard, B.Sc., F.C.A. (Chairman) 21. C.J. Johnston, B.A., F.C.A. 22. G. Parkes, M.B.A., Chartered Fellow C.l.P.D. 23. J.E. Rutherford B.Sc., M.A. 24. M W Shaw BEng. M.B.A. C.Eng. F.l.Struct.E. M.l.C.E. M.l.E.l. Vacate 2025 io
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS, REPORT For the year ended 31 March 2023 The Co-opted Educational Governors at March 2023 are as follows: R.W. Magee Bsc MA PGCE PQHINI) Sir D. Sterling KCB {vacate 2025) (vacate 2024) The Parent Representative Governors at March 2023 are as follows.. C. Holmes B.Sc., M.A., F.C.A. C. Moran B.A., M.A., M.Phll., Ph.D. (vacate 2025) (vacate 20251 The Teacher Representatlve Governors at March 2023 are as follow5: S. Archibald, M.Eng., P.G.C.E. J.B. Peak, B.A., P.G.C.E. (vacate 20251 (vacate 20251 Newly appointed Governors receive induction tralnlng from the Chalrman of the Board of Governors, the Principal and the Bursar. All Governors receive annual safeguarding and child protection training. A suite of training programmes is provided by the Education Authority for all Governors. Organ15ational Structure The Board of Governors is supported in carrying out its Governance role by Committees and Sub-Committee5. li
THE ROYAL BELFAST ACADEMICAL INSTITLrrioN GOVERNORS. REPORT For the year ended 31 March 2023 Governance Structure rd 011rn0 5Ghgol ¢•rnrnl¢t•e FINn¢•Commltio• Prqp•rtv 5uty. eommltt* Fde$6ursJry Sub- Comm1¢¢•• Inchmirl H•>hh &54f•tyind RlskMirbwrn•nt Commttt•• IcrcDmrrlltt• St4rnniCommltt• Audlt crn¢•I Inv•mIntcomrnttta1 ABAI FoUrd•tfi rnrnltt•• C4mmltt•• School Committee The School Committee has responsibility with regard to the educational and pastoral aspects of the School. In doing SO the Committee reviews the process for the intake to Year oversees teaching appointments; considers the on-going review and implementation of the School's Development Plan, reviews the provision of Pastoral Care, including Child Protection and Special Educational Needs (S.E.N.), and considers various educational initiatives, internal reviews and policies. Finance & General Purposes Commlttee The Finance & General Purposes Committee keeps under review all aspects of the School's finances through annual budgets and financial reports. Property Sub-commlttee The Property Sub-committee manages a wide range of capital development and maintenance matters pertaining to the School's estate. Fees Bursary Sub-commlttee The Fees Bursary Sub-committee administers the School's fees Bursary Scheme. The Governors believe that no boy should be denied an education in the Secondary Department because of the financial circumstances of his parents or guardians. The Fees Bursary Scheme supports parents/guardians to meet the fees which the School charges. 12
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS, REPORT For the year ended 31 March 2023 Audit Committee The Audit Committee considers the School's Annual Report and Financial Statements; receives the reports and recommendations of the internal and external auditors; and thereby reviews the effectiveness and efficiency of the School's systems of internal control and financial management. The internal auditor, ASM, reported that the Institution had a sound framework of control, which provided satisfactory assurance regarding the system of internal financial control. The external auditor, Moore {N.I.I LLP, reported that an unqualified audit opinion would be issued. Stafflng Committee The Staffing Committee considers a range of matters relating to the terms and conditions of employment of individuals within the teaching and non-teaching staff, including internal and external appointments and also conslders the annual review of salaries. Investment Commlttee The Investment Committee monitors the performance of the School's fund managers against their set objectives of providing both revenue income - to make good the shortfall in Government funding- and capital growth-to ensure the School's financial stability into the future. l.C.T. Commlttee The l.C.T. Committee manages the rolling l.C.T. hardware and infrastructure requirements of Inchmarlo and the Main School. The Committee also oversees the formation of policies and distribution of resources to support learning. Health. Safety & R15k Management Committee The Health, Safety & Risk Management Committee provides an oversight of matters relating to the School's on-going risk management process and procedures across a diverse range of aspects. The Committee continues to monitor the response to the on-going pandemic. RBAI Foundation Committee The RBAI Foundation Committee oversees fundraising and works closely with the Belfast Old Instonians Association and serves as the hub for communication5 Wlth alumni and friends of the School around the world. 13
THE ROYAL BELFAST ACADEMICAL INSTrruTION GOVERNORS, REPORT For the year ended 31 March 2023 Inchmarlo Management Committee The Inchmarlo Management Committee considers a diverse range of issues including: the educational provision and performance of the pupils, the School's Development Plan; pupil intake and enrolment numbers. administration of pastoral matters; finance and budgetary administration; and the maintenance of the Inchmarlo estate. Senior Leadershlp Team The Senior Leadership Team, comprising the Principal, the Vice-Principal (Curriculum and Quality Assessment), the Vice Principal (Pastoral and Pupil Achievement) and the Bursar, has responslbility for implementing and managing the strategies approved by the Board of Governors. Board of Governors Bur54r Princlpal Vite Prrncipal (Pastoral and Pupil Achlevementl Vl¢e Prlnclpal Icurrlculurn and Quallty Assurance) Declsion making The Board of Governors determine the strategic direction and policies for the School. Responsibility is delegated to the Senior Leadership Team to implement the strategies and policies and ensure the School achieves its aims and objectives. The School Development Plan and a550ciated budgets provide a framework for the implementation of the strategies. Members of the Senior Leadership Team attend all meetings of the Board of Governors and provide written and verbal information regarding the progress of the implementation of the School Development Plan, budgetary updates, variances arising and any remedial action taken. 14
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS, REPORT For the year ended 31 March 2023 Remuneration of Senior Leadership Team The Staffing Committee review the salaries of all staff on an annual basis. The Committee makes recommendations to the Board for any changes in salary, outside of agreed national agreements, including the salaries of the Senior Leadership Team. The Board of Governors is ultimately responsible for the setting of staff salaries. Relationshlp5 With Related Parties Due to the nature of the School's operations and the composition of the Board of Governors, being drawn from local, public and private sector organisations, it Is inevltable that transactions will take place wlth organisations in which a member of the Board of Governors may have an interest. All transattions Involvin8 organisations in which a member of the Board of Governors may have an interest are conducted at arm's length and in accordance with the School's financial regulations and normal procurement procedures. Statement of Governors Responsibilities The Board of Governors of Royal Belfast Academical Institution is responsible for the administration and management of the affairs of the School and is required to present audited financial statements for each financial year. Within the terms and conditions of the Scheme of Endowment, the Board, through its Chair, is required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the School and the result for that year. In preparing the financial statements the Board is required to: select sultable accounting policies and then apply them consistently,. make judgements and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to assume that the School will continue in operation. The Board is also required to prepare an Annual Report which describes the School objectives and how they are to be achieved, including the legal and administrative status of the School. The Board is responsible for keeping proper accounting records to safeguard assets of the School and for preventing and detecting fraud and other irregularities. 15
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS. REPORT For the year ended 31 March 2023 The Board has taken reasonable steps to: ensure that funds from the Department of Education are used only for the purposes for which they have been given," ensure that there are appropriate financial and management controls In place to safeguard public funds and funds from other sources; safeguard the assets of the School,. secure the economlc, efficient and effective management of the School's resources and expenditure. Dlsclosure of Informatlon to Audltors So far as each of the members of the Board is aware at the time thls report is approved: there is no relevant audit information of which the audltors are unaware and that the members of the Board have taken all the steps they ought to have taken to make themselves aware of any relevant audit information and to establish that the audltors are aware of that information. Approved on behalf of the Governors on 22 May 2023 by: R.M. Howard Chalrman 16
THE ROYAL BELFAST ACADEMICAL INSTrruTION INDEPENDENT AUDITOR'S REPORTTO THE BOARD OF GOVERNORS OF THE ROYAL BELFAST ACADEMICAL INSTITUTION Opinion We have audited the financial statements of The Royal Belfast Academical Institution {the st 'School') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Income and Expenditure Accounts, the Balance Sheet, the Cash Flow 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 FRS 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 give a true and fair view of the state of the School's affairs st a5 at 31 March 2023 and of its incoming resources and application of resources, for the year then ended; The financial statements have been properly prepared in accordance with the standards of accounting set by the Department of Education for Voluntary Grammar School's Statement of Accounts and in accordance with United Kingdom Generally Accepted Accounting Practice; Proper accounting records have been kept by the School throughout the period; The School's whole system of internal control in the relevant financial period was such as to comply with the obligations placed on the Board of Governors by the Department of Education and we have not identified any significant weaknesses; Grants made by the Department of Education and funds from other sources reported in the relevant financial period have been applied In accordance with the Financial Memorandum and any other terms and requirements attached to them: Pension deductions made bythe School in the relevant financial period were calculated correctly and have been paid over as required.. and The financial statements have been prepared In accordance with appllcable law, guidance issued by the Department of Education and International Standards on Auditing (UKI. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) {1SAs (UKI) 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 School 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 ethical responsibilities in accordance with these requirement5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 17
THE ROYAL BELFAST ACADEMICAL INSTITLTfioN INDEPENDENT AUDITOR'S REPORTTO THE BOARD OF GOVERNORS OF THE ROYAL BELFAST ACADEMICAL INSTITUTION Conclusions relating to going concern In auditing the financial statements, we have concluded that the Governors, 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 School'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 Governors with respect to going concern are described in the relevant sections of this report. Other Information The Governors are responsible for the other information. The other informatlon comprises the information Included in the annual report, other than the financial statements and our auditor's report thereon. Our oplnion 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 mi55tatements, 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. Matters on whlch we are required to report by exception We have nothing to report in respect of the following matters where legislation requires us to report to you if, in our opinion.. the information given in the Governors, Annual Report is inconsistent in any material respect with the financial statements; or sufficient accounting records have not been kept; or the financial Statements are not in agreement with the accounting records and returns,. or we have not received all the information and explanations we require for our audit. 18
THE ROYAL BELFAST ACADEMICAL INSTITUTION INDEPENDENT AUDITOR'S REPORTTO THE BOARD OF GOVERNORS OF THE ROYAL BELFAST ACADEMICAL INSTITUTION Responsibilities of Governors As explained more fully in the Governors, Responsibilities Statement set out on page 15, the Governors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Governors are responsible for assessing the School's ability to continue as a going concern, disclosin& as applicable, matters related to going concern and using the going concern basis of accounting unless the Governors either intend to liquidate the School or to cease operations, or have no realistic alternative but to do so. Auditorfs responslbllltles for the audit of the financlal 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 8uarantee 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. Extent to whlch the audit was considered capable of detecting irregularities, including fraud The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence re8ardin8 the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks. and to respond appropriately to instance5 of fraud or suspected fraud identified during the audit. However, the primary re5pon5ibility for the prevention and detection of fraud rest5 with both management and those charged with governance of the School. 19
THE ROYAL BELFAST ACADEMICAL INSTITUTION INDEPENDENT AUDITOR'S REPORTTOTHE BOARD OF GOVERNORS OF THE ROYAL BELFAST ACADEMICAL INSTITUTION Our approach was as follows: We obtained an understanding of the legal and regulatory requirements applicable to the School and considered that the most significant to be the 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). We obtained an understanding of how the School complies with these requirements by discu55ions with management and those charged with governance. We assessed the risk of material misstatement of the financlal statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with mana8ement and those charged with governance. We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. Based on this understanding, we designed specific appropriate audit procedures to identify instance5 of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtainin8 additional corroborative evidence as required. As part of an audit in accordance with ISAS (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. Audit procedures performed by the engagement team included: We obtained an understanding of the School's internal control systems in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinlon on the effectiveness of the School's internal control. We obtained an understanding of how the School complies with relevant laws and regulations by making enquiries of management and those charged with governance. Enquiry of management, those charged with governance and the entit¢s solicitors around actual and potential litigation and claims. Enquiry of entity staff to identify any instance5 of non-compliance with laws and regulations. Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. 20
THE ROYAL BELFAST ACADEMICAL INSTrruTION INDEPENDENT AUDITOR'S REPORTTO THE BOARD OF GOVERNORS OF THE ROYAL BELFAST ACADEMICAL INSTITUTION Reviewing minutes of meetings of those charged with governance. Reviewing internal audit reports. Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. Auditing the risk of management override of controls, including through testing Journal entries and other adjustments for appropriateness, and evaluating the rationale of significant transactions that are unusual or outside the normal course of business. We communicated relevant laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment through collusion, forgery, intentional omissions, misrepresentations or the override of internal control. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: http://www.frc.or8.uk/auditorsresponsibilties. This description forms part of our auditorfs report. We communlcate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant findings, including any significant deficiencies in internal control that we identify during our audit. 21
THE ROYAL BELFAST ACADEMICAL INSTrruTION INDEPENDENT AUDITOWS REPORTTOTHE BOARD OF GOVERNORS OF THE ROYAL BELFAST ACADEMICAL INSTITUTION Use of our report This report Is made solely to the School's Governors, as a body. Our audlt work has been undertaken so that we might state to the School's Governors 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 School and its Governors as a body, for our audlt work, for this report, or for the opinions we have formed. Moore Nl LLP Senior StatLrtory Audltor 4th Floor- Done8all House 7 Donegall Square North Belfast Northern Ireland BTI 5GB Date: Moore (Nl) LLP is eligible to act as an auditor in terms of section 65 of the Charlties Act (Nl) 2008 22
THE ROYAL BELFAST ACADEMICAL INSTITUTION STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 March 2023 Unrestrlcted Funds Restrlcted Funds Total 2023 Total 2022 General Funds Designated Funds Note Income from: Donations and legacies 75,959 237,493 313,452 435,077 Charitable activltles 7,961,386 7,961,386 7,844,273 Investments 888,833 11,330 31,353 931,516 834,223 Other sources 580,937 580,937 512,874 Total Income 9,431,156 87,289 268,846 9,787,291 9,626A47 enditure o Fundraising activities 125,576 130,156 255,732 219,773 Charltable activities io 8,286,905 358,948 8,645,853 8,077,129 8,412,481 358,948 130,156 8,901,585 8,296,902 Net income (expendlturel for the year 1,018.675 1271.659) 138,690 885,706 1,329,545 ILosslGain on Investments 17 11,778,799) 11,778,799) 1,156,745 Fund balances at I Aprll 2022 22 24,906,837 14,592,055 1,475,185 40,974,077 38,487,787 Fund balances at 31 March 2023 24.146,713 14,320,396 1,613,875 40,080,984 40,974,077 The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 27 to 43 form part of these financial statements. 23
THE ROYAL BELFAST ACADEMICAL INSTITUTION BALANCE SHEET For the year ended 31 March 2023 Notes 2023 2022 Fixed assets Tangible fixed assets Investments 16 17 13,453,825 23,854,424 470,(J)O 37,778,249 12,376,957 25,633,223 470,000 38,480.180 Investment properties Total fixed assets 18 Current assets Debtors Cash at bank and in hand Total current assets 19 20 427,921 2,946,636 3,374,S57 525,408 2,886,858 3,412,266 Current Ilabllltles Creditors: amounts falling due within one year Totsl current Ilabilities 21 1,071,822 1,071,822 918,369 918,369 Net current assets 2,302,735 2,493,897 Total assets less Ilabilitles 40,080.984 40,974,077 Represented by: 22 Unrestrirted funds: General 24,146,713 24,906,837 Designated 14,320,396 14,592,055 Total Unrestricted Funds Restricted funds: Trust Fund Accounts - Capital Trust Fund Accounts- Revenue 38,467,109 39,498,892 182,606 182,606 292,118 278,322 RBAI Foundation 1,136,979 1,012,138 War Memorial Fund 2,171 2,118 Inst Hockey Limited Total Restricted Funds 1,613,875 1,475,185 Total Funds 40,080,984 40,974,077 24
THE ROYAL BELFAST ACADEMICAL INSTITLrrioN BALANCE SHEET For the year ended 31 March 2023 The Governors acknowledge their responsibilities for: Ensuring the charity keeps accounting records that comply with section 386 of the Act Preparing financlal statements which give a true and falr view of the state of affairs of the charity as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year. The notes on pages 27 to 43 form part of the financial statements. The financial statements were approved by the Governors on 22 May 2023 R.M. Howard Chairman S.T. Gowdy Convenor of the School Committee ohan oroft Conve Finance & General Purposes Committee 25
THE ROYAL BELFAST ACADEMICAL INSTITUTION STATEMENT OF CASHFLOWS For the year ended 31 March 2023 Note 2022 Net cash inflow from operating activlties 23 564,078 1,082,619 Cash flows from investlng actlvities: Payments for Fixed Assets Income from estates properties Income from dividends Cost of investment acquisition Net cash (outflow) Inflow from investing actlvltiÈs (1,435,816) 23,006 908,510 (318,196) 21,568 812,655 (504,3001 516,027 Change in cash and cash equivalents 20 59.778 1,598,646 Cash and cash equlvalents at l April 2,886,858 1,288,212 Cash and cash equlvalents at 31 March 2,946,636 2,886,858 26
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE AcCourS For the year ended 31 March 2023 I. STATEMENT OF PRINCIPLE ACCOUNTING POLICIES Format and basls of Accounts The accounts have been prepared in accordance with the accounting policies set out in Note I to the accounts and comply with the Institution's Scheme of Endowment and "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 (FR5102} (effective l January 2019) and the Charities Act (Northern Ireland) 2008." Golng Concern The Board of Governors has considered the School's forecasts and projections. The governors have a reasonable expectation that the School has adequate resources to continue in operational existence for the foreseeable future. The School, therefore, continues to adopt the going concern basis in preparing its flnancial statements. Charltable Funds Unrestricted funds are available for use at the discretion of the Governors in furtherance of their charitable objectives, unless the funds have been desi8nated for other purposes. Designated funds comprise unrestricted funds which have been set aside, at the discretion of the Governors, for specific purposes. Restricted funds are subject to specific conditions by donors as to how they may be used. Recognltion of Income Income from fee5 is recognised at the be8innin8 of the academic year in which it IS receivable. Income from hire of premises is included to the extent of the completion of the contract. All investment income received is credited to the income and expenditure account in the period in which it is received. The recurrent grant and other revenue grants received from the Department of Education are recognised in the period in which they are received/receivable. Other Grants includes amounts receivable under the Coronavirus Job Retention Scheme to reimburse the School for the wages of certain employees who were furloughed during the period but who remained on the School's payroll. As this Scheme involves a transfer of resources from government to the entity, it meets the definition of a government grant. 27
THE ROYAL BELFAST ACADEMICAL INSTITirrioN NOTES TO THE AcCourS For the year ended 31 March 2023 Pension Schemes The two principal pension schemes for the School's staff are the Northern Ireland Teachers, Superannuation Scheme (NITSS) and the Northern Ireland Local Government Officers, Superannuation Committee (NILGOSC) schemes. Payments are made to the Northern Ireland Teachers Pension Scheme (NITPS) for teaching staff and to the Northern Ireland Local Government Officers Superannuation Committee INILGOSC) for support staff. These are both independently administered schemes. The NITSS is an unfunded defined benefit, voluntary membership scheme administered by the Department of Education. The current regulations under which the scheme operates are the Teachers, Superannuation Regulations (Nll 1998 (as amended>. The NITPS is a multi- employer scheme and the School is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The NITPS is therefore treated as a defined contribution scheme and the contributions expenses as they are paid each year. A full actuarial review of the Northern Ireland Teachers Pension Scheme was carried out during the 2018-19 year whlch resulted in the employer contribution rate increasing from 17.7% to 25.1% from l April 2019. NILGOSC is a defined benefit multi-employer scheme which is externally funded. The NILGOSC Fund is valued every three years by an independent actuary. The latest valuation was carried out on 31 March 2022 by the Committee's Actuary, Aon plc. Employers, contribution rates have remained at 19.5% since l April 2020 but will decrease to 19.0% from l April 2023. The NILGOSC scheme is treated as a defined contribution scheme. The Board is of the opinion that the contributions to the scheme should be treated as a defined contribution scheme because, at present, no future liability rests with the School, other than its normal monthly contributions and, at present, the contributions to the scheme are set at a common level for employers within the same bands in the scheme. The contributions are expenses as they are paid each year. 28
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2023 Tanglble Fixed Assets Land and Buildings Land and buildings are stated in the Balance Sheet on the basi5 of historical cost, as the open market value for existing use is not readily obtainable. The value of the School's land is deemed to be nil, as the land held by the School was purchased or donated at a cost that is now immaterial for valuation purposes. Freehold land is not depreciated. Freehold buildings and major adaptations to buildings are depreciated over 50 years. A review of building condition and useful lives is reassessed every 5 years. Equipment & Motor Vehicles Equipment costlng less than £10,000 per indlvldual item is written off to the Statement of Financial Activities In the period of acquisition. All other equipment is capltalised at cost. All assets are depreclated over their useful economic life as follows: Motor vehicles 5 years," General equipment 10 years; Computer equipment 3 years. Investments Investments are included at closlng mid-market value at the balance sheet date. Any gain or loss on the revaluation is taken to the Statement of Financial Activities. Investment income is accounted for in the period In which it is received. Investment Property Investment properties that are held for the generation of rental income are valued at current market value. Donated land that is not used for school activities is valued as agricultural land, at the current market value. Malntenance of Premise5 The cost of routine maintenance, responsive and prevenative, is charged to the Statement of Financial Activities in the period that it is incurred. 1.10. Taxation As a registered charity, the School is an exempt from tax. 29
THE ROYAL BELFAST ACADEMICAL INSTITLrrioN NOTES TO THE ACCOUNTS For the year ended 31 March 2023 Accordingly, the School is potentially exempt from taxation in respect of income or capital gains received within categories covered by Part 11 of CTA 2010 or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied to exclusively charitable purposes. The School is not registered for VAT. 1.11. Employee benefits The cost of any unused holiday entitlement is recognised in the period in whlch the employee's services are received. 1.12. Cash at bank Cash at bank includes amounts held on deposit with the School's bank. 1.13. Llabillties and provisions Provisions are recognised when the School has a present legal or constructive obligation as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. 1.14. Debtors Estimates are made in respect of the recoverable value of School fee debtors and other debtors. When assessing the level of provisions required, factors including current trading experience, historical experience and the agein8 profile of debtors are considered. 1.15. Stock The School does not hold stock for resale. 30
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTESTO THE ACCOUNTS For the year ended 31 March 2023 2. INCOME FROM DONATIONS AND LEGACIES 2023 2023 2023 2022 Unrestricted Designated Restricted Total Total Trust Fund Accounts 3CM) RBAI Foundation 75,959 237,493 313,452 434,777 75,959 237,493 313,452 435,077 3. INCOME FROM CHARITABLE ACTIVITIES Note 2023 2022 Unrestricted General Total Education Authority Grants 6,112,728 6,100,981 Other Grants 253 School Activities 1,848,658 1,743,039 7,961.386 7,844,273 31
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TOTHE ACCOUNTS For the year ended 31 March 2023 4. INCOME FROM EDUCATION AufHORITY GRANTS 2023 2023 2023 2022 Main School Prep Total Total Common Formula Funding Grant 5,515,548 83,505 5,599,053 5,552,331 Classroom Assistant Grant 180,466 70,764 251,230 208,638 Grant." Staff Cover 44,696 73 44,769 66,848 Grant: Teachers, Back Pay Ilncrement & NIC) 33,243 33,243 84,377 Grant: Non-Teaching payrise 5,277 5,277 Grant: COVID 50,190 6,466 56,656 125,605 Grant: SEND 17,383 17,383 25,596 Grant: Energy Prlce Mitigation 46,789 46,789 Other DE Grants 49,881 8,447 58,328 37,586 5,943,473 169,255 6,112,728 6,100,981 5. INCOME FROM OTHER GRANTS 2023 2022 Coronavirus Job Retention Scheme 253 32
THE ROYAL BELFAST ACADEMICAL INSTrruTION NOTES TO THE ACCOUNTS For the year ended 31 March 2023 6. INCOME FROM SCHOOL ACTIVITIES 2023 2023 2023 2022 Main School Prep Total Fees 1,166,588 550,353 1,716,941 1,689,444 Sundry income 42,320 97 42,417 35,022 Pupils, Text Books & Stationery 74,900 14,400 89,300 18,573 1,238,808 564,850 1,848,658 1,743,039 7. INCOME FROM INVESTMENTS 2023 2023 2023 2023 2022 Unrestricted General Unrestrlcted Designated Restrlcted Total Total Dlvidends 865,827 11,330 31,353 908,510 812,655 Land & Property Rent 23,006 23,006 21,568 888,833 11,330 31,353 931,516 834,223 33
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2023 8. INCOME FROM OTHER SOURCES 2023 2023 2023 2022 Main School Prep Total Total Income from use of premises 78,127 320 78,447 63,149 Sundry Income 57,734 57,734 30,300 Wraparound Care 29,472 29,472 33,129 Dining Halls 357,560 57,724 415,284 386,296 493,421 87,516 580,937 512,874 9. EXPENDITURE ON FUNDRAISING ACTIVITIES 2023 2023 2023 2022 Note General Restricted Total Total RBAI Foundatlon Staff Costs 11 100,194 100,194 86,675 RBAI Foundation Admin 25,382 25,382 18,863 RBAI Foundation Bursaries 88,908 88,908 81,274 Trust Fund Bursaries 1,700 1,700 1,545 RBAI Foundation Other 23,743 23,743 19,586 Trust Funds Expenditure 15,805 15,805 11,830 125,576 130,156 255,732 219,773 34
THE ROYAL BELFAST ACADEMICAL INsfiTufioN NOTES TOTHE ACCOUNTS For the year ended 31 March 2023 10. EXPENDITURE ON CHARITABLE ACTIVITIES 2023 2023 2023 2023 2022 Note Main School Prep Designated Funds Total Total Staff Costs- Grant funded 11 5,108,098 583,358 5,691,456 5,699,594 Staff Costs- School funded 11 101,249 49,049 150,298 160,518 School Costs 13 1,689,107 166,824 1,855,931 1,428,630 Other Costs 14 480,715 108,505 589,220 429,870 Depreciation 16 358,948 358,948 358,517 7,379,169 907,736 358,948 8,645,853 8,077,129 11. STAFF COSTS 2023 2023 2023 2022 Main School Prep Total Total Staff Costs- Funded from Grant 5,108,098 583,358 5,691,456 5,699,594 Staff Costs- School funded 101,249 49,049 150,298 160,518 Staff Costs - Fundraising 100,194 100,194 86,675 5,309,541 632,407 5,941,948 5,946,787 2023 2022 Wages and Salaries Social Security Costs Pension Costs 4,466,116 459,162 1,016,670 5,941,948 4,471,113 449,213 1,026,461 5,946,787 35
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTESTO THE ACCOUNTS For the year ended 31 March 2023 The number of employees whose emoluments for the year exceeded £60,000 are shown in the table below (including taxable benefits in kind but excludin8 employers, pension costs and employers, national insurance costs.) 2023 2022 £60,000 - £69,999 £70,000- £79,999 £80,000 - £89,999 £90,000- £99,999 £100,000- £109,999 £110,000- £119,999 2023 2022 Average Staff Numbers 150 147 12. KEY MANAGEMENT PERSONNEL Key Management Personnel are those persons having authorlty and responsibility for planning, directing and controlling the activities of the School and are represented by the Senior Leadership Team which comprises the Principal, Vice Principal {Curriculum and Quality Assurance), Vice Principal {Pastoral and Pupil Achievement) and the Bursar. Emoluments of Key Management Personnel (including the Principal) are as follows: 2023 No. 2023 2022 No. 2022 Aggregate employee benefits of key management personnel 429,541 447,625 There were no payments, including expenses, to members of the Board of Governors during the year (2022: nil). 36
THE ROYAL BELFAST ACADEMICAL INSTrruTION NOTES TO THE ACCOUNTS For the year ended 31 March 2023 13. SCHOOL COSTS ON CHARITABLE ACTIVITIES 2023 2023 2023 2022 Main School Prep Total Total Estates Cost5 908,849 89,036 997,885 800,021 Academic Costs 385,021 36,146 421,167 331,083 Sports & Games 152,559 6,422 158,981 112,061 Administration & other costs 242,678 35,220 277,988 185,465 1,689,107 166,824 1,855,931 1,428,630 14. OTHER COSTS 2023 2023 2023 2022 Main School Prep Total Total Sesquicentenary 3,407 3,407 5,007 External charges for admissions process 12,214 12,214 9,980 Wraparound Care 7,112 7,112 6,498 Dining Hall 465,094 101,393 566,487 408,385 480,715 108,505 589,220 429,870 15. AUDITORS, REMUNERATION 2023 2022 Internal Auditors, Remuneration 3,594 3,120 External Auditors, Remuneration 6,240 6,240 Auditors, Remuneration 9,834 9,360 37
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TOTHE ACCOUNTS For the year ended 31 March 2023 16. TANGIBLE FIXED ASSETS Buildings Capital Redevelopment Motor vehicles Equipment Total Cost At l April 2022 17,085,437 32,000 104,084 17,221,521 Additions 1,343,188 92,628 1,435,816 At 31 March 2023 18,428,625 92,628 32,000 104,084 18,657,337 Accumulated Depreciation At l April 2022 4,779,522 13,000 52,042 4,844,564 Depreciation 342,140 6,400 10,408 358,948 5,121,662 19,400 62,450 5,203,512 At 31 March 2023 NBV 31 March 2023 13,306,963 92,628 12,600 41,634 13,453,825 NBV 31 March 2022 12,305,915 19,000 52,042 12,376,957 38
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2023 17. INVESTMENTS Total Market Value At l April 2022 Additions Disposals Loss on investments 25,633,223 (1,778,799) At 31 March 2023 23,854,424 Long-term investments are held in a mix of funds managed by three professional fund management groups. In addition, short-term surplus cash balances, as determined by the Finance & General Purposes Committee, are held in a high-quality bond fund. The School's investments are managed by three fund Mana8ers: M&G Investments, Rathbones Investment Management and the Abrdn on behalf of Northern Ireland Central Investment Fund for Charities INICIFC). The School also holds a 50% shareholding of £1 in Inst Hockey Limited. 18. INVESTMENT PROPERTIES Total Market Value At l April 2022 Additions Disposals Gain on investments 470,000 At 31 March 2023 470,000 The School holds property at Ballylesson and Bladon Park as investment property. The property at Bladon Park is made up of two apartments, rented out on a commercial basis. The property at Balylesson is agricultural land leased on a commercial basis. There is also a portfolio of ground rents that has been donated to the School. The investment property has been valued by two Chartered Sup4eyors that are members of the Board of Governor5. 39
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2023 19. DEBTORS 2023 2022 School Fee Debtors 397,815 410,530 Other Debtors 18,679 67,762 Prepayments 11,427 47,116 427,921 525,408 20. CASH AT BANK AND IN HAND 2022 Cashflow 2023 Cash at Bank and in Hand 2,886,858 59,778 2,946,636 21. CREDITORS: Amounts falllng due wlthln one year 2023 2022 Creditors 110,073 175,985 Accruals and sundry creditors 267,713 93,522 Pupil Deposits 93,685 88,205 Deferred Income 50,850 43,561 Payroll Accruals 358,980 357,796 Balances held for: School No. 2 Account 135,914 113,142 Scout Group 7,312 1,896 Inchmarlo No. 2 Account 47,295 44,262 1,071,822 918,369 Deferred income relates to the income for hire of premises invoiced in 2022/23, which relates to the period 2023124. 40
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2023 23. CASH FLOWS FROM OPERATING ACTIVITIES 2023 885,706 2022 1,329,545 Net income before investment gains Elimination of non operating cashflows Investment income Depreciation {Increase)/decrease in stock {Increase)/decrease in debtors Increase/{decrease) in creditors Net cash Inflow from operatlng actlvities (931,516) (834,223) 358,948 358,517 82,958 153,309 {7,487) 1,082,619 97,487 153,453 564.078 24. POST STATEMENT OF FINANCIAL POSITION EVENTS There were no material post Statement of Financial Position events. 25. PENSIONS The School participates in two defined benefit pension schemes, the Northern Ireland Teacherfs Superannuation Scheme (NITSS) and the Northern Ireland Local Government Officers, Superannuation Committee (NILGOSCI schemes. Payments are made to the Northern Ireland Teachers Pension Scheme INITPS) for teaching staff and to the Northern Ireland Local Government Officers Superannuation Committee {NILGOSC) for support staff. These are both independently administered schemes. NITSS is an unfunded defined benefit, voluntary membership scheme administered by the Department of Education. The NITPS is a multi-employer scheme and the School is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The NITPS is therefore treated as a defined contributlon scheme and the contributions recognised as they are paid each year. The School contrlbutlon rate for the year commencing l April 2023 will be 25.1%12022123: 25.IQA). NILGOSC is a defined benefit multi-employer scheme which is externally funded. The NILGOSC Fund is valued every three years by an independent actuary. The latest valuation was carried out on 31 March 2022 by the Committee's Actuary, Aon Hewitt. The Fund's asset5 at 31 March 2022 were £10,231.Im and the past service liabilities were £9,226.7m, corresponding to a Surplus of £1,004.4m and a funding level of Ill%. Employerfs contribution rates will decrease from 19.5% to 19.0% at l April 2023. 42
THE ROYAL BELFAST ACADEMICAL INSTITLrrioN NOTES TO THE ACCOUNTS For the year ended 31 March 2023 Key assumptions for 2022 were: 2022 2.3% 3.8% 4.2% 2019 2.1% 3.6% 4.1% CPI inflation rate Rate of increase in pensionable salaries Investment returns The NILGOSC scheme is treated as a defined contribution scheme. The Board is of the opinion that the contributions to the scheme should be treated as a defined contribution scheme because, at present, no future liability rests with the School, other than its normal monthly contributions and, at present, the contributions to the scheme are set at a common level for employers within the same bands in the scheme. The contributions recognised as they are paid each year. 26. CAPITAL COMMITMENTS 2023 2022 Commitments at 31 March 1,020,475 27. RELATED PARTYTRANSAcfioNS Due to the nature of the School's operations and the composition of the Board of Governors, being drawn from local, public and private sector organisations, it is inevltable that transactions will take place with organisations in which a member of the Board of Governors may have an interest. All transactions involving organisations in which a member of the Board of Governors may have an interest are conducted at arm's length and in accordance with the School's financial regulations and normal procurement procedures. There are no disclosable related part transactions. Three members of the Board of Governors also serve as Directors of Inst. Hockey Limited. 43