Registered Charity Number: NIC108024 IID THE ROYAL BELFAST ACADEMICAL INSTITUTION ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024
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 2024 Governors, report for the year ended 31 March 2024 Independent Auditor's report to the Board of Governors of The Royal Belfast Academical Institution 17 Statement of Financial Activities for the year ended 31 March 2024 23 Balance Sheet at 31 March 2024 24 Statement of Cashflows for the year ended 31 March 2024 26 Notes to the Accounts for the year ended 31 March 2024 27
THE ROYAL BELFAST ACADEMICAL INSTITUTION REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024 Board of Governors 2023124 R.M. Howard, B.Sc., F.C.A. (Chairman) 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, B.A. l.S. Corry, M.D., F.R.C.S. (Orth), Dip.Sports.Med. D.S. Croft, M.Sc., B.A., M.l.B. A.G. Dick MB Bch MRCGP P.J. Dolaghan, P.G.C.E.,11.T.) C. Finnegan, B.A. M. Fitch, LL.B., F.C.A. S.T. Gowdy, LL.B. C.J. Johnston, B.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.I.P. (Resigned 26 June 2023) W.M.W. McDowell, F.R.l.C.S. G. Parkes, M.B.A., Chartered Fellow C.l.P.D. R.J.S. Price, F.C,A. {Appointed 18 September 2024) J.E. Rutherford, B.Sc., M.A. M. W. Shaw BEng. 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. Stelfox, 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 DETAILS OF THE CHARITY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024 Co-opted Governors Sir D. Sterling, KCB R.W. Magee BSC MA PGCE PQHINII F.C. Eakin, B.Sc., M.Sc., P.G.C.E. {Co-opted 18 September 20231 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. Principal 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 Institution College Square East Belfast BTI 6DL Charity Number 108024
THE ROYAL BELFAST ACADEMICAL INSTITUTION REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024 External Auditor Moore IN.I.I LLP 7 Donegall Square North Belfast BTI 5GB Internal Auditor ASM Glendinning House 6 Murray Street Belfast BTI 6DN Bank Danske Bank Donegall Square West Belfast BTI 6JS Investment Managers Cazenove Capital Newton Investment Management Abrdn on behalf of Northern Ireland Central Investment Fund for Charities M&G Investments Rathbones Investment Management Solicitors Cleaver Fulton Rankin 50 Belford Street Belfast BT2 7FW Carson McDowell LLP Murray House 4 Murray St Belfast BTI 6DN
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS, REPORT For the year ended 31 March 2024 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 2024. 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 (FRS1021 (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 I & Class11. The Class of membership held is dependent on the amount of the subscription 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, 35 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, particularly among the middling orders of society, (75 one of the necesslties rather than of the luxuries of life," not to hove o good education only the portion of the rich (7nd the noble, but as a patrimony of the whole people From 1831 until today, the School's full title has been, The Royal Belfast Academical 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 is 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 2024 Objectives and activitie5 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 maintaining a post primary voluntary grammar school for 1,050 boys in Central Belfast. By providing education, 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 activities. 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 Benefit Declaration The direct benefits which flow from the purpose include improved education standards, 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 2024 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 maintaining 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 providing education. 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. The School is currently providing education to equip pupils to sit the prescribed examinations for admission to tertiary edLJcation, to enter the labour market and generally to enable pupils to take their place in society as good citizens. iv. By providing sporting and recreational facilities for extra-curricular activities. The School provides sporting and recreational facilities across a wide range of clubs and societies. 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. The Board of Governors continues to invest in a series of capital projects to 5UPPOrt 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. A report on the property held and the financial position of the School is also presented at every meeting of the Board of Governors.
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS, REPORT For the year ended 31 March 2024 Fundraising and generating income RBAI is a category B 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. 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. A planning application to deliver the campus vision was submitted to Belfast City Council on 20 February 2024. Financial Review The financial statements have been prepared on a going concern basis in accordance with the Statement of Recommended Practice {SORP}: Accounting and Reportin8 for Charities IFRS 1021. The financial statements on pages 23-45 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 of £899,392 before investment gains of £1,893,625 for the year. The Balance Sheet at 31 March 2024, shows net assets of £42,874,001. The grant funding from the Education Authority, at just over £6.6m, represents 63% of our total income of £10.6m. The combined staff costs are £6.8m, equating to over IOOYO of Common Formula Grant funding, illustrating the challenge of funding the School. Total staff costs represent 69% of total expenditure. The increase in fees reflects an annual inflationary increase along with stable pupil numbers at the Main School. Income from the use of premises was restricted during the year due to the closure of the swimming pool in January 2024.
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS, REPORT For the year ended 31 March 2024 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 and capital plans 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 interim Common Formula Funding allocation of £5,523,152 for the year 2024/25. 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 15 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 School's investments were previously managed by three fund Managers: M&G Investments, Rathbones Investment Management and Abrdn on behalf of the Northern Ireland Central Investment Fund for Charities (NICIFCI. Following a tender process, the School transferred all its investments to Cazenove Capital and Newton Investment Management. Reserves policy The Governors believe that the School needs unrestricted reserves equivalent to the carrying value of fixed assets, six months working capital outgoing resources, annual capital replacement costs and specific capital project costs. The unrestricted reserves comprise of the general unrestricted reserve and the designated unrestricted reserve.
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS, REPORT For the year ended 31 March 2024 The recommended level of general unrestricted reserves at 31 March 2024 is £36m comprising of six months working capital, budgeted capital replacement, capital development and investment reserve fund. The general unrestricted reserves at 31 March 2024 were £26.684m. At this level, the Governors feel that they would be able to continue the current activities of the School. Amounts attributable to land and buildings and other fixed Issets will be held in the designated unrestricted reserve, as these assets are held for the long term and are not readily disposable. In the financial year ended 31 March 2024 the Governors have allocated an amount of £14.103m as Designated Funds. The Reserves Policy 15 monitored and reviewed at least annually. The Governors actively considers the reserves target, in light of capital development and maintenance plans. 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 2024 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 specialist interest in education are appointed to serve 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 four 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 four years. The Representative Governors at March 2024 are as follows: l. l.S. Corry, M.D., F.R.C.S. (Orth), Dip.Sports.Med. 2. D.S. Croft, M.Sc., B.A., M.l.B. 3. A.G. Dick MB Bch MRCGP 4. C.D. Gowdy, LL.B., (Vice Chairman) 5. W.J. Keith, O.B.E., M,Sc,, B.Ed., Dip.G.&C. 6. J.D. Stelfox, M.B.E., D.L., R.l.B.A., F.R.l.A.l. 7. W.A. Wilson, F.R.l.C.S. 8. W.R. Wilson, LL.B. (Hon. Secretary) Vacate 2024 9. C. Finnegan, B.A. 10. B.J. Cheevers, B.A. 11. M. Fitch, LL.B., F.C.A. 12. R.M. Howard, B.Sc., F.C.A. (Chairman) 13. C.J. Johnston, B.A., F.C.A. 14. G. Parkes, M.B.A., Chartered Fellow C.l.P.D. 15. J.E. Rutherford B.Sc., M.A. 16. M W Shaw BEng. M.B.A. C.Eng. F.l.Struct.E. M.l.C.E. M.l.E.l. Vacate 2025 17. A.1. Adair, LL.B., F.R.C.S.I. 18. P.J. Dolaghan, P.G.C.E., {l.T.) 19. S.T. Gowdy, LL.B. 20. J.C. Kernohan, B.A. 21. R.J.S. Price, F.C.A. 22. W.M.W. McDowell, F,R.l.C.S. 23. P. Shields, B.Sc., P.G.D. 24. J.J. Wylie, M.A., F.C.A. Vacate 2026 io
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS, REPORT For the year ended 31 March 2024 The Co-opted Educational Governors at March 2024 are as follows: Sir D. Sterling KCB R.W. Magee Bsc MA PGCE PQH(NII F.C. Eakin, B.Sc., M.Sc., P.G.C.E. (vacate 2024) {vacate 2025) (vacate 2026) The Parent Representative Governors at March 2024 are as follows: C. Holmes B.Sc., M.A., F.C.A. C. Moran B.A., M.A., M.Phil., Ph.D. {vacate 2025) {vacate 20251 The Teacher Representative Governors at March 2024 are as follows: S. Archibald, M.Eng., P.G.C.E. J.B. Peak, B.A., P.G.C.E. (vacate 20251 (vacate 2025} Newly appointed Governors receive induction training from the Chairman 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. Organisational Structure The Board of Governors is sUPPOrted in carrying out its Governance role by Committees and Sub-committees. Governance Structure eDardofGovernO Sthwlcornmittee PlesU ¢ornmitl¢e F¢e56u15arySu HeAIth&SafetyAnd Al(rnilee Cthmlit CommrtteE 11
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS, REPORT For the year ended 31 March 2024 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.I, and considers various educational initiatives, internal reviews and pol icies. Finance & General Purposes Committee The Finance & General Purposes Committee keeps under review all aspects of the School's finances through annual budgets and financial reports. Property Sub-committee The Property Sub-committee manages a wide range of capital development and maintenance matters pertaining to the School's estate. Fees Bursary Sub-committee 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. 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. Staffing Committee The Staffing Committee considers a range of matters relating to the terms and conditions of employment of individuals Wlthin the teaching and non-teaching staff, including internal and external appointments. It also determines salaries. 12
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS, REPORT For the year ended 31 March 2024 Investment Committee 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. The Investment Committee oversaw the transfer of the School's investments from M&G Investments, Rathbones Investment Management and Abrdn on behalf of the Northern Ireland Central Investment Fund for Charities {NICIFC to Cazenove Capital and Newton Investment Management. l.C.T. Committee 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 & Risk 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 range of aspects. RBAI Foundation Committee The RBAI Foundation Committee oversees fundraising and works closely with the Belfast Old Instonians Association and serves as the hub for communications with alumni and friends of the School around the world. 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 Leadership 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 responsibility for implementing and managing the strategies approved by the Board of Governors. 13
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS, REPORT For the year ended 31 March 2024 Board of Governors Bursaf Principal Vice Principal (Pastoral and Pupil Achievement) Vice Principal Icurriculum and Quality Assurarbcel Decision making The Board of Governors determine the strategic direction and policie5 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 associated budgets provide a framework for the implementation of the strategies. Representatives 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. 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. Relationships 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 inevitable 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. 14
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS. REPORT For the year ended 31 March 2024 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 or Governors, through its Chairman, 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 of Governors is required to: select suitable 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 of Governors 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 of Governors is responsible for keeping proper accounting records to safeguard the assets of the School and for preventing and detecting fraud and other irregularities, The Board of Governors 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 economic, efficient and effective management of the School's resources and expenditure. 15
THE ROYAL BELFAST ACADEMICAL INSTITUTION GOVERNORS, REPORT For the year ended 31 March 2024 Disclosure of Information to Auditors So far as each of the members of the Board of Governors is aware at the time this report is approved: there is no relevant audit information of which the auditors 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 auditors are aware of that information. Approved on behalf of the Board Governors on 28 May 2024 by: R.M. Howard- Chairman 16
THE ROYAL BELFAST ACADEMICAL INSTITUTION 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 5nstitution (the 'School') for the year ended 31 March 2024 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 as at 31 March 2024 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 by the 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 applicable law, guidance issued by the Department of Education and International Standards on Auditing (UK}. 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 requirements. 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 INSTITUTION INDEPENDENT AUDITOR'S REPORT TO 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 information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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. Matters on which 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 REPORT TO 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 Governor5 are responsible for assessing the School'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 Governors either intend to liquidate the School or to cease operations, or have no realistic alternative but to do so. Auditor'5 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. Extent to which 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 regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the School. 19
THE ROYAL BELFAST ACADEMICAL INSTITUTION INDEPENDENT AUDITOR'S REPORT TO THE BOARD OF GOVERNOR5 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 IFRS 102). We obtained an understanding of how the School complies with these requirements by discussions with management and those charged with governance. We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management 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 instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining 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 opinion 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 entity's solicitors around actual and potential litigation and claims. Enquiry of entity Staff to identify any instances of non-compliance with Saws 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 INSTITUTION INDEPENDENT AUDITOR'S REPORT TO 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 evaluatingthe 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 regulation5 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.org.uk/auditorsresponsibilties. This description forms part of our auditor's report. We communicate 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 INSTITUTION INDEPENDENT AUDITOR'S REPORTTO THE 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 audit 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 auditorfs 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 audit work, for this report, or for the opinions we have formed. Moore (N.1.) NI LLP Senior Statutory Auditor 4th Floor- Donegall House 7 Donegall Square North Belfast Northern Ireland BTI 5GB Date: Moore (N.I.I LLP is eligible to act as an auditor in terms of section 65 of the Charities Act {Nl) 2008 22
THE ROYAL BELFAST ACADEMICAL INSTITUTION STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 March 2024 Restricted Funds Total 2024 Total 2023 Unrestricted Funds General Funds Designated Funds Notes Income from: Donations and legacies 137,930 286,702 424.632 313,452 Charitable activities 8,654,009 8,654,009 7,961,386 Investments 797,407 19,187 31,766 848,360 931,516 Other sources 709,438 709,438 580,937 Total income 10,160,854 157,117 318,468 10.636,439 9,787,291 enditure on: Fundraising activities 144.120 1,240 161,806 307,166 255,732 Charitable activities 9,056,598 373,283 9,429,881 8,645,853 9,200,718 374,523 161,806 9,737,047 8,901,585 Net income {expenditurel for the year 960,136 {217,406) IS6,662 899,392 885,706 Gain on investments 16-17 1,576,708 316,917 1,893,625 {1,778,7991 Fund balances at I April 2023 21 24,146,713 14,320,396 1,613,875 40,080,984 40,974,077 Fund balances at 31 March 2024 26,683,557 14,102,990 2,087,454 42,874,001 40,080,984 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 45 form part of these financial statements. 23
THE ROYAL BELFAST ACADEMICAL INSTITUTION BALANCE SHEET For the year ended 31 March 2024 Notes 2024 2023 Fixed assets Tangible fixed assets Investments Investment properties Total fixed assets 15 16 17 13,454,450 25,298,049 920,000 39,672,499 13,453,825 23,854,424 470,000 37,778,249 Current assets Debtors Cash at bank and in hand Total current assets 18 19 1,111,924 3,645,162 4,757,086 427,921 2,946,636 3,374,557 Current liabilities Creditors: amounts falling due within one year Total current liabilities 20 1,555,584 1,555,584 1,071,822 1,071,822 Net current assets 3,201,502 2,302,735 Total assets less liabilities 42,874,001 40,080,984 Represented bv: 21 Unrestricted funds: General 26,683,547 1. 14,102,990 24,146,713 Designated 14,320,396 Total Unrestricted Funds Restricted funds: Trust Fund Accounts - Capital Trust Fund Accounts - Revenue 40,786.547 38.467.109 499,523 311,951 182,606 292,118 RBAI Foundation 1,273,754 2,225 1,136,979 2,171 War Memorial Fund Inst Hockey Limited Total Restricted Funds 2,087,454 1,613,875 Total Funds 42,874.001 40,080,984 24
THE ROYAL BELFAST ACADEMICAL INSTITUTION BALANCE SHEET For the year ended 31 March 2024 The Governors acknowledge their responsibilities for: Ensuring the charity keeps accounting records that comply with section 386 of the Act Preparing financial statements which give a true and fair 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 45 form part of the financial statements. The financial statements were approved by the Governors on 28 May 2024 ..rr R.M. Howard Chairman er ohan or of the Con inance & General Purposes Committee 25
THE ROYAL BELFAST ACADEMICAL INSTITUTION STATEMENT OF CASHFLOWS For the year ended 31 March 2024 Note 2023 Net cash inflow from operating activities 22 224,074 564,078 Cash flows from investing activities: Payments for Fixed Assets 1373,908) (1,435,816) Income from estates properties 17,674 23,006 Proceeds from sale of land 5,000 Income from dividends 770,403 908,510 Income from bank interest 55,283 Net cash inflow (outflow) from investing activities 474,452 {504,300) Change in cash and cash equivalents 19 698,526 59,778 Cash and cash equivalents at l April 2,946,636 2,886,858 Cash and cash equivalents at 31 March 3,645,162 2,946,636 26
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2024 I. STATEMENT OF PRINCIPLE ACCOUNTING POLICIES Format and basis 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 IFRS1021 (effective l January 20191 and the Charities Act (Northern Ireland) 2008." 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. Charitable Funds Unrestricted funds are available for use at the discretion of the Governors in furtherance of their charitable objectives, unless the funds have been designated 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. Recognition of Income Income from fees is recognised at the beginning 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. Allocation of costs Costs relating to the charity are all School costs. The costs associated with fundraising are the cost5 incurred by the RBAI Foundation office. 27
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2024 Pension Schemes The two principal pension schemes for the School'5 Staff are the Northern Ireland Teachers, Pension Scheme {NITPS) and the Northern Ireland Local Government Officers, Pension Committee (NILGOSCI schemes. Payments are made to the NITPS for teaching staff and to NILGOSC for support staff. These are both independently administered schemes. The NITPS 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, Pension Regulations {Nl) 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 which resulted in the employer contribution rate increasing from 17.70A to 25.1¥o from IApril 2019. Following a valuation carried out in 2020 the employer contribution rate will increase from 25.1% to 29.1% from IApril 2024. 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 NILGOSC Actuary, Aon plc. Employers, contribution rates have remained at 19.0% since 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 2024 Tangible Fixed Assets Land and Buildings Land and buildings are stated in the Balance Sheet on the basis of historical cost, as the open market value for existing use is not readily obtainable. The carrying 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. Capital Development costs are professional fees and expenditure incurred in the preparation for the construction of the campus vision. These costs are capitalised but will not be depreciated until construction of Phase I has been completed. Capital Redevelopment Costs relating to the capital development of the school site are included in the Balance Sheet at cost. This cost will be transferred to Land and Buildings when the development is complete. Depreciation 15 not charged on the capital development costs. Equipment & Motor Vehicles Equipment costing less than £10,000 per individual item is written off to the Statement of Financial Activities in the period of acquisition. All other equipment is capitalised at cost. All assets are depreciated over their useful economic life as follows: Motor vehicles 5 years; General equipment 10 years. Computer equipment 3 years. Investments Investments are included at market value at the balance sheet date. Any gain or10ss 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 The School holds property for investment purposes. This is included at deemed market value at the balance sheet date. 29
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2024 1.10. Maintenance of Premises The cost of routine maintenance, responsive and preventative, is charged to the Statement of Financial Activities in the period that it is incurred. 1.11. Taxation As a registered charity, the School does not make any provision for a tax liability as it 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. 1.12. Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's seNices are received. 1.13. Cash at bank Cash at bank includes amounts held on deposit with the School's banks. 1.14. Liabilities and provisions Provisions are recognised when the School ha5 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. 1.15. 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 ageing profile of debtors are considered. 1.16. Stock The School does not hold stock for resale. 30
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2024 2. INCOME FROM DONATIONS AND LEGACIES 2024 2024 2024 2023 Unrestricted Designated Restricted Total Total RBAI Foundation 137,930 286,702 424,632 313,452 137,930 286,702 424,632 313,452 3. INCOME FROM CHARITABLE AcfiviTIES Note 2024 2023 Unrestricted - General Total Education Authority Grants 6,648,046 6,112,728 School Activities 2,005,963 1,848,658 8,654,009 7,961,386 31
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2024 4. INCOME FROM EDUCATION AUTHORITY GRANTS 2024 2024 2024 2023 Main School Prep Total Total Common Formula Funding Grant 5.530,448 73.813 5,604,261 5,599,053 Classroom Assistant Grant 209,753 98,390 308,143 251,230 Grant: Staff Cover 14,707 1,721 16,428 44,769 Grant.. Teachers. Back Pay (Increment & NICI 654,766 15,360 671,126 33,243 Grant: Non-Teaching payrise 21,636 2,305 23,941 5,277 Grant: COVID 56,656 Grant: SEND 9,055 9,055 17,383 Grant- Energy Price M itigation 46,789 Other DE Grants 16,092 16,092 58,328 6,456,457 191,589 6,648,046 6,112,728 32
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2024 5. INCOME FROM SCHOOL AcfiviTIES 2024 2024 2024 2023 Main School Prep Total Total Fees 1,278,833 565,750 1.844,583 1,716,941 Sundry income 73,165 85 73,250 42,417 Pupils, Text Books & Stationery 74,690 13,440 88,130 89,3] 1,426,688 579,275 2,005,963 1,848,658 6. INCOME FROM INVESTMENTS 2024 2024 2024 2024 2023 Unrestricted General Unrestricted Designated Restricted Total Total Dividends 724,450 14,187 31,766 770,403 908.510 Bank Interest 55,283 55,283 Land & Property Rent 17,674 17,674 23,006 Proceeds from sale of land 5,000 5,000 797,407 19,187 31,766 848,360 931,516 33
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2024 7. INCOME FROM OTHER SOURCES 2024 2024 2024 2023 Main School Prep Total Total Income from use of premises 57,943 570 58,513 78,447 Sundry Income 71,866 71,866 57,734 Wraparound Care 137,302 137,302 29,472 Dining Halls 353.512 88,245 441,757 415,284 483,321 226,117 709,438 580,937 8. EXPENDITURE ON FUNDRAISING ACTIVITIES 2024 2024 2024 2024 2023 Note General Designated Restricted Total Total RBAI Foundation Staff Costs io 110,514 110,514 100, 194 RBAI Foundation Admin 33,606 33,606 25,382 RBAI Foundation Bursaries 105,622 105,622 88,908 Trust Fund Bursaries 1,634 1,634 1,700 RBAI Foundation Other 1,240 44,304 45,544 23,743 Trust Funds Expenditure 10,246 10,246 15,805 144,120 1,240 161,806 307,166 255,732 34
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2024 9. EXPENDITURE ON CHARITABLE AcfiviTIES 2024 2024 2024 2024 2023 Note Main School Prep Designated Funds Total Total Staff Costs- Grant funded io 5,742,661 687,442 6,430,103 5,691,456 Staff Costs - School funded io 107,148 110,580 217,788 150,298 School Costs 12 1,666,254 179,822 1,846,076 1.855,931 Other Costs 13 432,508 130,183 562,691 589,220 Depreciation 15 373,283 373,283 358,948 7,948,571 1,108,027 373,283 9,429,881 8,645,853 10. STAFF COSTS 2024 2024 2024 2023 Main School Prep Total Total Staff Costs- Funded from Grant 5,742,661 687,442 6.430,103 5,691,456 Staff Costs- School funded 107.148 110,580 217.788 150,298 Staff Costs - Fund raising 110,514 110,454 100,194 5,960,323 798,022 6,758,345 5,941,948 2024 2023 Wages and Salaries Social Security Costs Pension Costs 5,079,434 515,748 1,163,163 6,758,345 4.466,116 459,162 1,016.670 5,941,948 35
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2024 The number of employees whose emoluments for the year exceeded £60,000 are shown in thetable below lincludingtaxable benefits in kind but excludingemployers, pension costs and employers, national insurance costs.) 2024 2023 £60,000 - £69,999 £70,000 - £79,999 £80,000 - £89,999 £90,000- £99,999 £100,000 - £109,999 £110,000 - £119,999 2024 2023 Average Staff Numbers 155 150 11. KEY MANAGEMENT PERSONNEL Key Management Personnel are those persons having authority 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.. 2024 2024 2023 No. 2023 No. Aggregate employee benefits of key management personnel 462,013 429,541 There were no payments, including expenses, to members of the Board of Governors during the year12023: nil). 36
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2024 12. SCHOOL COSTS ON CHARITABLE ACTIVITIES 2024 2024 2024 2023 Main School Prep Total Total Estates Costs 915,858 119,790 1,035.648 997,884 Academic Costs 411,902 29,923 441,825 421,167 Sports & Games 145,331 3,268 148,599 158,981 Administration & other costs 193,163 26,841 220,004 277,899 1,666,254 179.822 1,846,076 1,855,931 13. OTHER COSTS 2024 2024 2024 2023 Main School Prep Total Total Sesquicentenary 3,407 Charges for admissions process 8,626 8,626 12,214 Wraparound Care 12,891 12,891 7,112 Dining Hall 423,882 117,292 541,174 566,487 432,508 130,183 562,691 589.220 14. AUDITORS, REMUNERATION 2024 2023 Internal Auditors, Remuneration 3,594 3,594 External Auditors, Remuneration 6,240 6,240 Auditors, Remuneration 9,834 9.834 37
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2024 15. TANGIBLE FIXED ASSETS Land & Buildings Capital Redevelopment Motor vehicles Equipment Total Cost At l April 2023 18.428,625 92,628 32.000 104,084 18,657,337 Additions 55,940 317,968 373,908 At 31 March 2024 18,484,565 410,596 32,000 104,084 19,031,245 Accumulated Depreciation At l April 2023 5.121,662 19,400 62,450 5,203,512 Depreciation 356,475 6,400 10,408 373,283 At 31 March 2024 5,478,137 25,800 72,858 5,576,795 NBV 31 March 2024 13,006.428 410,596 6.200 31.226 13,454,450 NBV 31 March 2023 13,306,963 92,628 12,600 41,634 13,453,825 38
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2024 16. INVESTMENTS Total Market Value At l April 2023 Gain on investments 23,854,424 1,443,625 At 31 March 2024 25,298,049 Long-term investments are held in a mix of funds managed by two professional fund management groups. In addition, short-term surplus cash balances, as determined by the Finance & General Purposes Committee, are held in a money market fund. The School's investments were previously 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). Following a tender process, the School transferred all its investments to Cazenove Capital and Newton Investment Management. The School also holds a 500A shareholding valued at £1 in Inst Hockey Limited. 17. INVESTMENT PROPERTIES Total Market Value At l April 2023 470,000 Gain on investments 450,000 At 31 March 2024 920,000 The School holds property for investment purposes. This is included at deemed market value at the balance sheet date. 39
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2024 18. DEBTORS 2024 2023 School Fee Debtor5 431,178 397,815 Other Debtors 657,038 18,679 Prepayments 23,708 11,427 1,111,924 427,921 19. CASH AT BANKAND IN HAND 2023 Cashflow 2024 Cash at Bank and in Hand 2,946,636 698,526 3,645,162 40
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2024 20. CREDITORS: Amounts falling due within one year 2024 2023 Creditors 111,278 110,073 Accruals and sundry creditors 170,600 267,713 Pupil Deposits 92,720 93,685 Deferred Income 29,266 50,850 Payroll Accruals 976,440 358,980 Balances held for: School No. 2 Account 115,036 135,914 Scout Group 4,267 7,312 Inchmarlo No. 2 Account 55,977 47,295 1,555,584 1,071,822 Deferred income relates to the income for hire of premises invoiced in 2023/24, which relates to the period 2024125. The 2022/23 deferred income has been fully released and the 2023124 deferred income relates only to income newly deferred in the year. 41
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2024 22. CASH FLOWS FROM OPERATING AcfiviTIES 2024 899,392 2023 885,706 Net income before investment Eains Elimination of non operating cashflows Investment income Depreciation (Increase)/decrease in debtors Increase in creditors Net cash inflow from operating activities (848,360) 373,283 (684,003) 483 762 224,074 {931,5161 358,948 97,487 153 453 564,078 23. POST BALANCE SHEET EVENTS There are no reportable post balance sheet events. 24. PENSIONS The School participates in two defined benefit pension schemes, the Northern Ireland Teacher's Pension Scheme (NITPS) and the Northern Ireland Local Government Officers, Pension Committee {NILGOSCI schemes. Payments are made to the Northern Ireland Teachers Pension Scheme (NITPSI for teaching staff and to the Northern Ireland Local Government Officers Pension Committee (NILGOSC) for support staff. These are both independently administered schemes. NITPS is an unfunded defined benefit, voluntary membership scheme administered by the Department of Education. The NITPS 15 a multi-employer scheme and the School is unable to identify it5 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 recognised as they are paid each year. The School contribution rate for the year commencing l April 2024 will be 29.1/12023/24: 25.IOA). 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 NILGOSC'S Actuary, Aon Hewitt. The Fund's assets 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%. Employer's contribution rates decreased from 19.5/0 to 19.0% at l April 2023. 43
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2024 Key assumptions for 2022 were: 2022 2.3% 3.80A 4.2% 2019 2.lyo 3.60 4.IOA 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 Schoo5, 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 recognised as they are paid each year. 25. CAPITAL COMMITMENTS 2024 2023 Commitments at 31 March A tender is in progress for the demolition of the swimming pool. This process had not concluded at the time of signing the accounts. 26. RELATED PARTY TRANSAcfioNS 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 inevitable 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 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. 44
THE ROYAL BELFAST ACADEMICAL INSTITUTION NOTES TO THE ACCOUNTS For the year ended 31 March 2024 27. SOFA COMPARATIVES Unrestricted Funds Restricted Funds Total 2023 General Funds Designated Funds Note Income from: Donations and legacies 75.959 237,493 313,452 Charitable activities 7,961,386 7,961,386 Investments 888,833 11.330 31.353 931,516 Other sources 580,937 580,937 Total income 9,431.156 87,289 268,846 9,787,291 enditure on: Fundraising activities 125,576 130,156 255.732 Charitable activities io 8,286,905 358.948 8,645,853 8.412,481 358,948 130,156 8,901,585 Net income lexpenditurel for the year 1,018,675 {271,6591 138,690 885,706 ILosslGain on investments 17 {1,778,799) {1,778,7991 Fund balances at I April 2022 22 24,906,837 14,592,055 1,475,185 40,974,077 Fund balances at 31 March 2023 24,146,713 14,320,396 1,613,875 40,080,984 45