ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Charity No- SC005503 Established under Deed of Trust dated 30 April 1980) REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Registered Address: 100 Renfrew Street Glasgow G2 3DB ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Established under Deed of Trust daled 30 April 1980) Contents Page Report by the Trustees Report of the Independent Auditors 9-12 Statement of Financial Activities 13 Balan￿ Sheet 14 Statemenl of Cash Flows 15 Notes to the Financial Statements 16-30 List of Trustees and Advisers 31 ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Eslablished under Deed of Trust dated 30 April 1980) REPORT BY THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023 The Trustees present their report along wth the financial statements of the Trust for the year ended 31 December 2024. Structure, Governance and Management The Royal Scottish Academy of Music and Drama Trust was established by Deed of Trust by James Ainslie Millar and others dated 30 April 1980. The Trust is 8 registered Scottish Charty - number SC005503. A Supplementary Deed was executed by the Truslees in order, int8r alia, to change the name lo the Royal Conservatoire of Scotland Trust (RCS Trust) and was approved by the Office of the Scottish Charity Regulator on 22 February 2013. This was undertaken to reflect the change of name of the Royal Scottish Academy of Music and Drama to the Royal Conservatoire of Scotland (RCS) on 1 September 2011. The Deed provides that the Trustees shall never be less than three in number and the power of appointing and remving Trustees shall be exercisable by deed. The Trustees listed on page 31 have seNed during the whole of the period from 1 January 2024 to the date of this report unless otherwise ststed. The Trustees keep the ski15 requirement of the Trustee body under ￿vIeW, and in the event that a Trustee retires or additional new Trustees are required, nominations are considered at full meetings of the Trustees. The induction process for any newly appointed Trustee comprises an initial meeting with the Chair, the Secretary and Treasurer and the Principal. The welcome pack includes a brief history of the Trust, a copy of the Trust Deed and Supplementary Deed and a copy ofthe financial statements and Minutes for the last 3 years. The Trustees normally meei four limes a year. At these meetings the Trustee5 agree the broad strategy and areas of activity for the Trust. including consideration of grant making. investment, reserves and risk management policies and performance. The day-to4ay administration of the affairs of the Twst is undertaken by approprfate personnel within the RCS overseen by the Secretary and Treasurer who has an executive role within the RCS. Objectlvos and activities The Trust was established for such educational purposes as are charitable las defined) and, in particular bLrt without prejudice to the 9enerality, to provide scholarships. bursaries or grants to selected deserving students of the RCS including postgraduate students and graduates of the RCS proposing to continue their postgraduate studies elsewhere, and to foster and encourage public performances of the RCS'S productions throughout Scotland and elsewhere. Achievements and performance Income from Trusts, Corporates and individuals for the year amounled to £1.895,056 (2023.. £2,426,412). Income from investments for the year was £273.95812023'. £258.097). The objective of the Trust is to build up the level of scholarship support year on year for students and graduates of the Conservaloire. The value of awards paid during the year was £1,669,568 12023.. £1.644.306). Taking into account future awards lo which the Trust is committed at the financial year end the totsl value of awards for the year shown in the Statement of Financial Activities was £1,693,034 {2023.' £1,529,483). ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Establlshed under Deed of Trust dated 30 April 1980) 2024 2024 2024 2023 Unrestricted Restricted TOTAL TOTAL Iwshi nd burs id durin th Nll awards between £30.000 and £34.99912023.. 1 award) 3 awards bet**en £20,000 and £24,99912023.. 1 award) 8 awards between £15,000 and £19.99912023." 6 awards) 23 awariJ5 b8tween £10.000 and £14.99912023.. 25 awards) 82 awards between £5,000 and £9,99912023.. 55 awardsl 497 awards up to £4,99912023.. 543 aV￿rds) Total gran18 pald 34,471 20,859 100,580 292,395 360,940 835 061 53,346 97,000 147,129 279,286 10,880 40,850 116,477 264.009 302 137 64.226 137,850 263,606 543.295 935,215 734,353 1,669,568 1,644,306 Mov￿ent in provision forluture payments Total Awards and Scholarships 114823 1.529,483 958,681 734,353 1.693,034 Paid directly to RCS in settlernent of on behaw of students Paid to student5 to assist witti living costs Total lexcludlng movernent In provision) 700,W 473,094 261259 7¥353 1,174.078 1.130.304 514 495 490 ￿02 1.669.568 1,644,306 935.215 Music awards 636.432 354,877 128,828 165,686 56,550 55.450 15,127 51,284 10,7Y) 73,509 991,309 294,514 112.lJOO 925,994 338.981 94.721 69,835 13,720 105.858 Drama ￿ar[J9 Dance awards Pfodudion awards 66,411 18,350 92.766 94 218 1.669,568 Film awwds Researth awards 19,257 80 199 734,353 Pr&Higher Education awards Total18xcluding movement In provlslonl 935,215 1.644.306 ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Established under Deed of Trust dated 30 April 1980) Flnancial revlew Donations received fall into the following categories- Yearto 31 December 2024 Year to 31 December 2023 RCS Endowment Trust 600 000 ABRSM 1000 000 500 Other Donations £10,000 and above (21 donalions; 2023.. 24 donations) £1,000 to £9.999 (28 donations., 2023- 33 donations) Sundry Donations 519,194 115,600 1,190,210 133,062 1326 412 Totsl 1895 056 2 426 412 As in previous years, some of these donations are cleady designated for a specific purpose or for awards to only Music, Drama. Dance. Production or Film. These requirements have been carefully obseNed and restricted funds are disclosed separately in Ihe financial statements. Allocation be￿een funds is shown in note 3 to the accounts. Taknng the donations together with investment income and interest ￿Ceived, total income for the yearamounted to £2,169,01412023'. £2,684,509). Expenditure forthe yearamounted lo £1.857,853 {2023: £1,683,360). After accounting for realised and unrealised investment gains aggregating £926,34512023.' gains of£579.1981, as detailed below, the result forthe year was a net total increase in funds of £1,237.506 {2023.' net increase in funds of £1,580,347}. Risk Management The Trustees have considered the major risks lo which the Tw$t 1$ exposed and have reviewed those risks and established systems and procedures lo manage them. This includes a risk matrix which delails the main risks facing the Trust, the impact of a risk materialising and the controls and mitigants in place to manage these risks. The matrix is maintained, updated and reviewed annually by the Trustees. The continued recovery ofthe donation from ABRSM has reduced the level of this key risk in relation to support from the principal donor and, as a consequence, has reduced the donation sought from the RCS Endowment Trust. The progress and trajectory of this recovery is monitored carefully as this source provides funding for the majority of awards. The Trust also relies on continuing support from other charities, found8tions and individuals lo fund awards each year and this remains a risk in the current volatile economic climate. The volatility of investment perfomiance constitutes the other main risk. The Trustees make clear to new recipients that multi-year awards will be subject lo ftjture affordabilrty. The Trustees have ￿nsidered the carrying value of the investment in ABRSM which is shovén in these financial statements at the original cost and have concluded that, on the basis of reasonable ROYAL CONSERVATOIRE OF SCOTLAND TRUST {Established under Deed of Trust dated 30 April 1980) expectations about prospects for ABRSM and related future income streams. there is no impairmenl to the carrying value at the financial year end. Risk miti atin factors Recovery of the donation from the ABRSM stalls Budgets and forward forecasts are received from ABRSM. RCS Endowment Trust can provide SLbPPOrt if necessa Scholarship award letters have been amended lo state that future year awards are subjecl to affordabili A fall in investment income Revenue balances available for distribution are evaluated each year prior to awards and ,if necessa awards can be aused There are balances on unrestricled funds and expendable endowments which can be de lo ed to meet shortfalls. A fall in donations from educational ¢h8rtties and foundations Earty waming of cessation of regular receipts is sought from donors which can be adjusledlremoved overtime, if necessary, with short temi losses funded from general unrestricted reserves. Failure to cope with demand from RCS due to increased student numbers and impact of incre8$ing fees RCS has a Fundraising Committee and ha8 invested further In fundraising capacity with key focus on increasing donations to the Trust in support of scholarships. RCS could absorb some scholarship awards in Ihe form of fee discounts. Outlook and future commitments The Trustees welcome the continued recovery of the ABRSM business and its intention to build on the donation paid this year at a fasler annual rate than previously forecast. During the year RCS invested in expansion of its fundraising capacity. One of the main aims of this investment is to grow the donor base of the Trust in support of expansion of scholarships which will assist RCS in meeting its strategic Obje￿iveS. The Trust awards many Scholarships which provide an annual award for the duration of a student's programme of study to be funded from fulure Income. The cosl ofthese commrtments is fully accrued in these financial Statements. Grant making policy Applications for disbursements ￿qUestIng such assistance as is encompassed within the Purposes set out above shall be considered and decided upon by the Trustees, after tsking the advi￿ of the ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Established under Deed of Trust dated 30 Aprll 1980) Pnncipal of the RCS or of the Directors of the Schools of Music or Drama, Dance Production and Film or such other member of the RCS'S staff as may be appropriate, and lin directly sponsored cases) after consulting ￿th the individual sponsor or sponsors concerned. Inveslment powers, poll¢y and perfomiance The Trustees, investment powers are governed by Ihe Trusl Deed, which permits the Trustees to invest in stocks, bonds, securities and other investmenls whether or not qL￿ted on any recognised stock exchange. The Trustees, investment policy is to seek a balanc8 of income and capital growth. To this end the Trust has appointed an investmenl manager. The Tru5t'5 inveslmenls have continued to be managed in conformty Wlth the policy and the Trusl The realised gain on distyjsals during the year amounted to £78,893 {2023'. realised loss of £20,172). Unrealised gains on investments for the year amounted to £847,45212023'. unrealised gains of £599,370) wlh Ihe market value of the portfolio standing at £2.219.885 higher than book cost (31 December 2023.. £1,399,592 higher than book cost). A formal method of perfornance monitoring of the investment manager has been agreed and implemented. The performance of the investment portfolio on a total retum basis for the year to 31 December 2024 was +11.3tr/• {Year to 31 December 2023: +8.9 101 compared with a benchma￿ of +15.1 Q/0 (Year to 31 December 2023.. +12.3 % l. The extreme COn￿ntratIon in global equity markets with a small number of technology stocks driving markets higher is not reflected in a well-diversified dlscretionary investment porffolio which results in the current lag relative lo the benchmark. Reser4es Policy The Truslees are committed to the disbursement of as much of the unrestricted funds as possible during the year whilst remaining mindful of the need to mainlain the real value of capital funds. Of the total unrestriGted funds held at 31 December 2024 of £4.320,897 131 December 2023- £3,779,175) "Free reSe￿eS, amount lo £2,045.897131 December 2023.. £1,504,175). This sum is regarded as adequate bul not excesswe. Plans for tho future To continue to support the development of the business initiatives at the ABRSM to enable it to adapt and grow its business to grow donations lo the Trust on a sustainable basis., To manage the level of donation requested from the RCS Endowment Trust in the context of the recovery of the ABRSM to minimise the impact on the amount of annual scholarship awards payable to students and graduates of the RCS whilst maintaining the fijture financial health of the Trust; To continue to monitor the effectiveness of the scholarship poI￿Y in attracting the best studenls lo RCS: To liaise closely with regular donor5 to ensure that any ￿ductIon in donations bs managed with minimal disruption., To support the work of the RCS fijndraising arm lo widen the base of support from other Trusts and Foundations with the aim of increasing the amount of annual stholarship awards- ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Established under Dèed of Trust dated 30 April 1980) Trustees, Insurance The Trust has arrangements for Direclors and Officers liabi1Sty insurance cover. Golng Concern In their assessment of going con￿rn the Trustees have considered the impact on the business of the Current economic dimate and their ability to continue to furKI scholarships. The Trustees continue to receive support from the RCS Endowment Trust to allow them lo meet their financial obligations which include multi-year awards as the recovery of the ABRSM continues. The Trustees have assessed the extent lo which it is possible. with that support to continue to offer further scholarship awards for 2024-25 onwards and continue to believe the going concern basis of accounting is appropriate in preparing the financial statements. There are no known material uncertainlies about the Trust's ability to continue as a going concern. ROYAL CONSERVATOIRE OF SCOTLAND TRUST {Established undor Deed of Trust dated 30 April 1980) Trustees, responsibilities in relation to the financial slatom•nts The Charity Trusteès are responsible for preparing 8 trustees, annual report and financial statements in accordance with applicable law and Unrted Kingdom Accounting Standards {United Kingdom GeneralW Accepted Accounting Practice). The law applicable to charities in Scouand requlres the Charity Trustees to prepare financial statements for each year which gNe a true and fair vlew of the stale of affairs of the charity and of the incoming resources and applScatlon of resources, of the charity for that period. In preparing the financlal statements, the Trust98s are required to". lect suitable accounting policies and then apply them consistently., observe the methods and prtnciples in the applicable Charities SORP., make judgements and estimates that are reasonable and prudent., state whether applicable accounting standards have been followed, subject lo any materlal departures diso108ed and explained in the financial statements., prepare the financial statements on the going concern basis unless it 18 inappropriat8 to presume that the charrty will continue in business. The Trustges are responsible for keeping proper accounting reo)rds that disclose wtth reasonable accuracy at any tim8 the financial position of the charity and to enable them to ensure that the nancial statements comply ¥Mth the Charities and Trustee Inveslmenl (Scotlandl Aci 2005, the Charity Accounts (Scotland) Regulations 2006 las amended). and the provisions of th8 TTUSI deed. They are also responsible for safeguarding the assets of the charity and taking reasonab18 sleps for the p￿ventIOn and detection of fraud and other irregularities. Acknowledgement The Trustees tske this opportLtnity to thank the Principal of the Conservatoire and all staff involved in the administration of the Trust. Ghalmian ol the Royal ConseThatoire of Scotland Trust Dats 20 ROYAL CONSERVATOIRE OF SCOTLANDTRUST (Established under Deed of Trust dated 30 April 1980) Independent Audltor's Report to the Trustees of Royal Conservatolro of Scotland Trust Oplnion on financial statsmonts We have audited the financial statements of The Royal Conservatoire of Scotland Trust {'Ihe Charity'l for the year ended 31 December 2024 which comprise the Statement of Financial Aclwities and Incom6 and Expenditure Account, the Balar￿e Sheet, Slalement of Cash Flows, related notes and a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom A¢counting Standards (United Kingdom Generally Acckpted A￿oUntIng Praclicel, including FRS 102 "The Financial Reporting standard applicable in the UK and Republic of Ireland.. This report is made solely to the charity's trustees, as a body, in accordance with Section 4411 Ilcl of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotlandl Regutations 2006 {as amended). Our audit wort( has been undertaken so that we might state lo the charity's truslees those mallers we are required to slate to them in an auditors, report and for no other purpose. To the fullest extent pemiitted by law. we do not accept or assume responsibilty to anyone other than the charity and its trustees as a body, for our audit work, for this report. or for the opinions that we have fomied. In our opinion the financial statements.. give a true and fair view of the state of the charity's affairs as at 31 December 2024 and of its incoming resources and application of reSoUr￿s, for the year then ended.. have been properly prepared in accordan￿ with United Kingdom Generally Accepted Accounting Pracllce., and have been prepared in accordance wilh the requIren￿nIS of the Charities and Trustee Investment (Scollandl Act 2005 and regulations 6 to 8 of the Charities Accounts (Scotlandl Regulations 2006 las amended). Basis for opinion We Conducled our audit in accordance with International Standards on Auditing (UK) {ISAs {UK}I and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audil of the financial statements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to golng concern We have nothing to report in respect of the following matters in relation to wh￿h the ISAS (UK) require us to report to you where.. the trustees, use of the going concern basis of accounting in the preparation of the financial statements is not appropriate- or the trustees have nol disclosed in the financial slatements any identified material un￿rtaIntieS thal may cast slgnrficant doubt about Ihe charity's ability lo continue lo adopt the going concem basis of accounting for a period of al least t￿e1ve months from the date when the financial statements are authorised for issue. ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Established under Deed of Trust dated 30 April 1980) (Xhor Infomiatlon The trustees are responsible for the other information. The other infomiation comprises the information included in the annual report, other than Ihe financial statements and our Report of the Independent Audilors thereon. Our opinion on the financial statements does not cover the other infonnation and we do not expre&8 any fomi of assurance conclusion thereon. In connectSon wlth our 8udR of the financial statements. our responslbility is to read the other infom)ation and, in doing so, consider whether the other infomation is materially inconsistent with Ihe financial statements or our knowledge obtained in the audit or othemise appears lo be materially misstated. If, based on the work we have perfomed. we conclude that there is a material misstatement of this other inforrnalion, we are required to report that fact. We have nothing to report in this regard. Matters on whlch we are required to report by oXCePtlon In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material rnisstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where the Charities Accounts {Scotiandl Regulations 2006 (as amended) requires us to report to you if, in our opinion- the charity has not kept proper and adequate accounting records or retums adequate for our audit have not been received from branches not visited by us,. or the financial statemeDls are not in agreement the accounting records and returns- or certain disclosures of ITU$tees' remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit. Responslbilltles of Iwstoos As explained more fully in the Statement of Trustees Responsibilities set OLrt on page eight, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give 8 true and fair view. and for such intemal control as the trustees determine is necessary to enable the preparation of financial statements thal a￿ free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Iruslees are responsible for assessing the charity's ability to continue as a going concern, disclosSng, as applicable, matters related to going concern and using the going concem basis of accounting unless the trustees either intend to liquidate the charSty or to cease operations, or have no realistic alternative but lo do so. io ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Established under Deod of Trust dated 30 April 1980) Auditors. responsibilities for tho audit of the flnan¢lal Statements Our objectives are lo oblain reasonable aSSUra￿e about whether the financial statements as whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assLsrance. but is not a guarantee that an audit conducted in accordance with ISAS (UK) will a￿y$ detecl a material misstatement when it exists. Misstatements Can arise from fraud or error and are considered material rf, individually or in the aggregate. they could reasonably be expecied 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 responsibilibes, outlined above, to detecl malerial misstalements In respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. We identified and assessed the risks of material misstatement of the financial stal8ments from irregularities. whether due to fraud or error, and discussed these between our audrt team members. We then designed and performed audil procedures responsive to those risks, inGluding obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. We are not responsible for preventing non-compliance and cannot b8 expected to detect non- compliance with all laws and regulations- this responsibility lies with management with the oversight of the Trustees. Based on our underslanding ofthe Chanty, discussions with management and Trustees we identified financial reporting standards and Charity SORP as having a direct effect on the amounts and disclosures in the financial statements. As part oflhe engagement team discussion about how and where the Charity's financial statements may be materially misstated due to fraud, we did not identify any areas with an increased risk of fraud. Our audit procedures included: completing a risk-assessment process during our planning for this audit that specifically considered the risk of fraud., enquiry of management about the Charity's policies, prO￿dureS and related controls regardin9 compliance with laws and regulations and if there are any known instances of non-compliance: examining supporting documents for all malerial balances, transactions and disclosures,. review, where applicable, of the Board of Trustees, minutes; enquiry of management about litigations and claims and inspection of relevant correspond8nc8', analytical procedures to identify any unusual or unexpected relationships.. specific audit testing on and review of areas that could be subject to management override of controls and potential bias, most notably around the key judgments and estimates, including the carrying value of investments, creditors and revenue recognition., considering management override of controls outside of the normal operating cycles including testing the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements including evaluating the business rationaie of significant transactions, outside the nornal course of business. Owing to the inherenl limitations of an audit, there is an unavoidable risk Ihat some material misstatements of the financial ststements may not be detected, even though the audit is properfy planned and perfom)ed in accordance with the ISAS (UK). li ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Established under Deed of Trust dated 30 April 1980) The potBntial effects of Inhe￿nt limitations are particularty significant in the case of misstatement resulling from fraud because fraud may involve sophisticated and carefully organized schemes designed to conceal it, including deliberate failure to record transactions. collusion or intentional misrepresentations being made to us. A further description of our responsibiltties for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's repc)rt. Anderson Anderson & Brown Audit LLP Statutory Auditor 133 Finnieston Street Gl83gow G3 8HB IAnderson Anderson & Brown Audit LLP is eligible to act as an auditor in terms of Seclion 1212 of the Companies Act 2006) 12 (Nr '11-'4111 11 T5•VJW ¢J) ooln TJ o oco c(y* ty7J > ¢5> ¢%* )ou) O¢D rN¢D 1 47) Ln irjrr ) Tn v Jz z ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Established under Deed of Trust dated 30 April 1980) BALANCE SHEET AS AT 31 DECEMBER 2024 Unr•$trl¢t•d Rèstrletod Endowm•nt Funds Funds Funds Total 31 Doc 24 Total 31 D¢c 23 Note Flxed Assets Inve*ment5 442691 9 226 971 14 090 58S 12 6S2 922 Currènt Assgts Debtors Cash at bank and in hand Total Current Asset$ 52.348 1 163 359 1,215.707 276,699 2,500 331,547 1 183359 1.494,9 742,976 276,699 2.S)O 1,606,156 Llabilltl¢$ Cradilors= amounts falling due within ong year Net Current Assets 429 747 Total A$$•t8 Lèss Current Llabllltl8s 4.738.860 4fj2,587 9,229.471 14,430.918 13.082.669 Credrtors.. amounts falling due after more than one year 10 417 417 Total Net A59etS Th• Funds of Charlty: Unr8strict&d Furbds Restricted funds End¢)wrnenl Funds.. Permanent endowmant Expendable èndowmant 4.320.897 4,320.897 462,587 3.779,175 361,506 482,587 1,848,648 7 380 823 1,848,648 7 380 823 1,832,477 680229 Total Charfty Funds 13 4 320 897 2 9471 14012 9SS 12 Appmved by the Board of Trustees and signed on its behalf by Trustee Date The notes on pages 16 to 30 fom part of these fina￿la1 statements. 14 ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Established under Deed of Trust daled 30 April 1980) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 Note 2024 2023 Cash flows from operatlng a¢tlvltles: Cash provided by operating activities 11 537 539 147 899 Net cash provided by operating activities 537,539 147,899 Cash flows from Invostlng actlvltlos: Dividends, Interest Proceeds from sale of investments Purchase of investments 273.958 1,869,904 2 381222 258.097 2.872,351 3 820 394 Not cash used in invosting activities 237 360 689 946 Change In cash and cash gquivalents in the year 300,179 (542,0471 Cash and cash equivalents brought foThvard 12 863 180 1405 227 Cash and ¢a5h equivalonts carriod foThvard 12 1 163359 863 180 The notes on pages 16 to 30 fomi part of these financial statements. 15 ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Established under Deed of Trust dated 30 April 1980) Notes to the Financial Statements for the year ended 31 Dgcembor 2024 Accounllng Policios (a) Basls of p￿paratIon and assessment of going concern The financial statements have been prepared under Ihe historical cost convention with items recognised at cost or transactson value modified by the revaluab'on of listed Fixed Asset Investmenls. The financial statements have been prepared in accordance w￿h the Statemenl of Recommended PraCtI￿- Accounting and Reporting by Charities p￿parIng their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102} issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 1021 (issued August 2014), the Charities and Trustee Investment (Scollandl Act 2005 and the Charities Accounts {Scotland) Regulations 2006 {as amended). All figures reported in the financial statements are in pounds sterting. The Trust constitutes a public benefit entity as defined by FRS102. The trustees conslder that, with financial support offered from the RCS Endowment Tnjst, there are no material uncertainties about the Trust's ability to COTrtinue as a going concern. (b) Funds structure Unrestricted income funds comprise those funds which the trustees are free lo use for any purpose in furtherance of the charitable objects. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor or trust deed or through the terms of an appeal. Endowment funds are permanent or expendable capital funds. If a restricted fund balance which relates lo an expendable endowment fuThJ is in deficit a transler is made between the funds to eliminate the deficit. Further delails of each fund are disclosed in note 13. (c) Income rncognition l income is recognised once the Twst has entrtlement to the income. it is probable that the income wll be receNed and the amount of income receivable be measured reliably. Donations are recognised when the Trust has been nolrfied in writing of both the amount and settlement date. In the event that a donation 1$ subject to conditions that require a level of perfomance before the Trust is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those condilions is wholly within the control of the Trust and it is probable that those conditions will be fulfilled in the reporting period. 16 ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Established under Deed of Trust dated 30 April 1980) Legacy gifts a￿ recognised on a case-by-case basis following the granting of confimiation when the administratorlexecutor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in Ihe form of an asset other than cash or a nancial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable wilh a degree of reasonable accuracy and the title to the asset having been transferred to the Trust. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Trust- this is normally upon nolification of Ihe interesl paid or payable by the bank. Dividends are recognlsed once the dividend has been declared and notification has been received of the dividend due,. this is nomially upon notification by the Trust's investment advisor. (d) Expenditure recognition Liabiltiies are recognised as expenditure as soon as Ihere is a legal or conslnjctive obligation committing the Trust lo that expenditure, it 18 probable that Settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditu￿ headings. Awards and Scholarships are payments to students of the RCS including postgraduate students and graduates of the RCS proposing to continue their postgraduate studies elsewhere. and to foster and encourage public performances of the RCS'S productions throughoLrt Scotland and elsewhere. In the case of an unconditional scholarship offer this is accrued once the recipient has been nolified of the award. The notification gives the recipient reasonable expectation that they will re￿1ve the one-year or multi-year scholarship. Scholarships that are subject to the recipient fvlfilling performance conditions are on accrued when the recipient has been notified of the award and any ￿MainIng unfulfilled condition attaching to the scholarship is outside of the control of the Trust. The provision for a mulli-year scholarship is recognised al its present value where s8ttlemenl is due over more than one year from the date of the award and there are no unfulfilled perfomiance conditions under the control of the Trust. Settlement of the poterllial liability is considered probable and no discounting has been applied as the Trustees do not consider thal any discount would be material. (e) Allocation olsupport and governance costs Administration costs have been allocaled between governance costs and support costs. Governan￿ cosls comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These include costs reEated to statutory audit and legal fees together with an apportionment of administration costs. AdmInistrat￿n costs represenl a donation to the RCS in ￿SpeCt of the administration of the Trusl and are allocated between support and governance cosls on the basis of the estimated time spent upon each area of activty. (Q Costs of r8lsing funds The costs of raising funds consist of investment management costs. 17 ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Establishod under Deed of Trust dated 30 Aprll 1980) (g) Charitable actlvltles Costs of charitable activities Ir￿lude awards and 5¢holarships made, support costs and governanc8 cosls. (h) Flxed assets Investments Investments are a form of basic financial inslrument and are initia15y recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted markel price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. The Trust does not acquire put optlons, derivatlves or other complex flnancial instruments. The main form of financial risk faced by the Trust is volatilty in equty markets and investment markets due to wider e￿noMiC conditions, the attitude of investors to inveslment risk and changes in sentiment concerning equities within particular sectors or sub sectors. (l) Investments In Assoclatos Investments in associates are measured at COSt less accumulated impairment losses. O) Realised gains and lossgs All gains and losses are taken to the Statemenl of Financial Activities as they arise. Realised gains and losses on investments are calculated as Ihe difference between sales proceeds and their opening carrying value or their purchase value rf acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as Ihe difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statsment of Financial Activities. (k) Contlngent Ilabllltles A contingent liability is identified and disclosed for those grants resulting from.. A possible obligation which wll only be confimied by the occU￿ence of one or mo uncertain future events not wholty within the truslee's control., or A present obligation following a grant offer where settlement is either not considered probable., or The amount has not been communicated in Ihe grant offer and that amount cannot be estimated reliably. (l) Allocatlon of Income across Funds Inveslment income is allocated be￿een Restricted and Unrestricted Funds based on Ihe opening Fixed Asset Investment value and allocated across individual funds each year pro rata on their opening capital value. (m) Allocation of Expendlture acmss Funds Investment management costs are allocaled between Pemianent Endowments, Expendable Endowments and Unrestricted Funds based on the opening carrying value of fixed asset investments and allocated across individual funds each year pro rata on their opening capitsl value. 18 ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Established under Deèd of Trust dated 30 April 1980) (n) Allocation of Balance Sheet items acmss Funds Amounts withln the Balance Sheet are directly attributed lo the approprSate fund category where the amount can be speoifically identified. The remaining amounts are allocated on the following basis.. Debtors and creditors: on a pro rats basis based on the opening capitsl value of the funds. Cash.. balances in excess of those required to meet restricted fund current liabilities are classified as unrestricted. Investments.. the residual balance which represents investments is allocated as necessary across each fund. Related Party Transactlons and Trustees, expenses and remuneratlon The Trustees all give freely their time and expertise without any fomi of remuneration or other benefit in cash or kind {2023: £nil). Expenses paid to the trustees in the year totalled £nil 12023.- £nill There were no related paty transactions during the year. Donations and Logacies Unrestricted Funds Restricted Endomnent Funds Funds 2024 2023 - RCS Endowmenl Tru - ABRSM - Trusts - Corporate Legacies Individuals Total 254,716 1.000,000 26,000 254,716 1,000.000 362.725 70,250 52,480 154 885 1895 056 600.000 500.000 549,422 78,250 560,459 138281 2426412 336.725 70,250 5,000 121 360 533 335 18,899 28,581 1 320 640 Investment Incomo Unrestricted Funds Restricted Endowment Funds Funds 2024 2023 Income from Investments Bank interest received 45,989 209,496 255,485 246,326 224 452 273 958 258 097 19 ROYAL CONSERVATQIRE OF SCOTLAND TRUST (Establlshed under Deed of Trust dated 30 April 1980) Support Costs 2024 2023 Administration costs Bank charges Sundry 68,780 309 188 65,504 422 199 Administration costs represent a donation to the RCS in respect of the administration of the Trust and are allocated be￿een Support and Governance Costs on the basis of the estlmated tlme spent each area of xtivty. Governance Costs 2024 2023 Administration costs (see note 51 Audit fees Legal & professional fees Insurance costs 45,853 8,100 774 728 43,670 7,800 367 Remunerdtion of the audltors In respect of non-audit services was nil12023 - nlll. Fixed Asset Investmonts 31 Dec 24 31 Dec 23 Assoclated Board of the Royal Schools of Music at cost. 2 275 000 2 275 000 Llsted Investments Market value a$ at 1 January Purchases Disposals Unrealised investment gain Market value as at 31 December 10,377,922 8,850.681 2.381,222 3,820,394 (1,791,010} (2,892,523) 847 451 599 370 11 815585 10377 922 Total 14 090 585 12 652 922 Cost of listed investments as at 31 December 9 595 700 8 978 330 20 ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Establlshed under Deed of Trust dated 30 April 1980) Individual trust listed investments which constitute a material proportion of the total market value of the Trust's portfolio at 31 December 2024 were as follows: per￿ntage of total Security Holding Value Vanguard Funds (North America) Herilage Managed Portfolio Fun(J Vanguard Funds {UK) Fidelity UCITIS Ishares V plc 9.893 1,341,690 11,649 43,877 69.050 886,932 514,243 413,132 378,439 364.275 This investment ￿preSentS the historic cost of membership of the ABRSM and entilles the RCS Trustto appoint￿0 members to the Governing Body. In the yearto 31 December2024 donations from the ABRSM to the Trust amounted to £1,000,00012023- £500,000). The ABRSM is a registered charity and a cornpany limited by guarantee established by four Royal Schools of Music for the benefit of music educalion with the following aims and objectives.. • To advance the arts. science and skills of music, speech and drama throughout the UK and overseas,. and •To promote the education and instruction in and the study and appreciation of music, speech and drama The Trust's quarter share ofthe ABRSM as at 31 January was as follows= 2024 2023 Incomin Resources Fixed assets Current assets Liabilities fallin due within one ear Liabilities fallin due out with one ear Pension fund deficit 12,222,000 1,568,000 8,006,000 2 575,000 675,000 449,000 11,382,000 1,654,000 6,570,000 2 436,000 547,000 950,000 Debtors: amounts falling due within one year 31 Dec 24 31 Dec23 Prepayments and accrued income Sundry debtors Income lax recoverable RCS current alc 196,459 116.983 18,105 528,415 182,837 9,679 742 976 21 ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Established under Deed of Trust dated 30 April 1980) Creditors: amounts falling duo Within one yèar 31 Dec 24 31 Dec 23 Grants payable Provision for multi-year scholarships Accruals and deferred income RCS Endowment Trust RCS current alc 430.637 677.422 19,545 13,284 394,963 764,699 16,747 1 154 573 1 176409 10 Creditors: amounts falling due after more than one year 31 Dec 24 31 Dec 23 Provision for mutti-year scholarships ' 417 963 417 963 307 220 307 220 'Multi-year scholarships due.. 2026 2027 316.463 101.500 11 Reconclliatlon of net income to net cash flow fr¢)m operating activities 2024 2023 Net income for the year as per Statement of Financial Activthes Adjustments for.. Dividends and interest Gains on investments Decreasellincreasel in debtors Increaselldecrease} in creditors 1,237.506 1,580,347 1273,9581 1926.3451 411,429 {258.0971 {579,1981 {381,3881 213 765 Net cash provided by operating activilie$ 537 539 147 899 12 Analysis of cash and cash equDvalents 2024 2023 Cash in hand 1 163359 863 180 Total cash and cash equivalents 863 180 22 ROYAL CONSERVATOIRE OF SCOTLAND TRUST {Establlshed under Deed of Trust dated 30 April 1980) 13 Analysis of Charitabl• Funds Unrostrictod Funds Balanco blfvld Gainsl Ilossesl Balancg Income Expenditure Transfers Capital ReseNe Unrestricted Funds TOTAL 2,275,000 1 504175 3 779 175 2,275,000 2 045 897 4 320 897 1370 146 1370 146 989 368 989 368 The Caprtal ReseNe represents the historic cost of Ihe investmenl held in Ihe ABRSM. The Unrestricted Funds may be applied for any of the purposes of the Trust. The Unrestricted Fund includes £399,597 unrealised investment gain as at 31 December 2024 (31 December 2023= gain of£149,129). 23 UJ E E?0 Lq uJEe 7J7J8g 8 uJcDE£° lJ TJTJ¥T ffl7J I Ill4°111S,,111111-.t£fill1121 In{n￿)E ¥ UJLOO VLOn o)v fknojf (Ou) 4 Tr-OQ fyr OTr- l ￿ r 'tyON(TJ oj cfj QJTr-O J2éiJ OoJ- Ce7 o) Illiiiiaiilil 7inv)uJuJuJuJ¢n¢nLuJ >t4￿(￿[n(nIUU)thU)wC1lnW￿?[niUJ¢nruJ #orkn￿ rkn*m(%JoJr¢ nLna)ry lryrlDQJrtrJary)¢Drgm rioin(Tr*r 00 QjTrr￿OoI (QTr-lO¢Wrt ojth 0￿ m Iii rknroTri(0￿IkntrO¢0 UJOONvlOin¢o Lnn¢Dty>￿(o £0 L4J £ uj uooo (no￿01n()(￿Q)cL￿)￿V) Pl(¢(￿￿¢D￿ C(OvaJ￿) IDtr-¢D¢DfknUJLn ¢0 ¢D ¢L>if&vU>i4ir> IOUi(O(OvOv -* (bl ￿￿00 JO N¢ooo > ￿￿><£$ ¢nroNN srfo ryJMrt(o 3(¢Cr C￿01￿ EE￿L0￿￿ (LO E- aEc5Q)oD_ OJOO >￿￿￿)lI)CLu)U)to￿ll)￿C OWOUJOIOWJffjlDIOin UI0(n*inOrrr￿OOC¥1wffjc5￿O￿O JOOuJo￿IV￿o￿J0v Ovo ooo￿lf)￿l￿¢0Wj v(OOtyO ¢Lri J rCg0¢00)U)IOgJrO I rkn¢Drto¢otrJo rr In¢0￿(0 E20￿￿L) ci 01 E CLL Q> VJ >w._ OryEr&c 0000204>wJCCCLJo￿O Q> YJ 4) V> 000 v)u)cj(nw(n(n(n(n(O?IIi￿Tr￿)j>1[O<(nL￿)EoLOcL￿￿￿)U)￿ts)tQu 11- £, Si- ryJrtrO J(TJWO OOVIO <%rVfOC4￿OO¢4t1) ¢000￿0 aj*￿(or)01nmIXjOOvUjo￿o0%l￿￿lcJO￿￿Joj￿jO ¢Jifkn fo ryi r - q> 0> u)Csrotr- 0> OC>*¢ll (0 0> pj EéthVJxEié%g 4)QuSSL)WC ROYAL CONSERVATOIRE OF SCOTLAND TRUST (Established under Deed of Trust dated 30 Aprll 1980) 13 Analysls of Charltable Funds (continued) Restricted Funds (continued) Note 1 If a restricted fund balance which relate5 to an expendable woowm￿t fund is in defiat a transfer is made between the funds io elirninate the deficit. Note 2 The Cdin Hamilton Permanent Endowment (x)mprises of a donation of investrnents which are managed by an 8xtern￿ fund manager. The annual growth in the fund nel of expenses is utilised to make aw8rds from the Colin Harnitton Restricted Fund. Awards from Permawnt Endowmen15 that are in deficit are beirvJ reduce(J or paused over time to albw the defirils to be elimin81ed. Note 4 The Pamela Black scholarship and thè Ponsonby scholarshlp have been r￿laSsIfied as an Expendable Endowment at the r8que515 of th8ir r85peclive donors. Note 3 Investrnent managements costs are allocated be￿een Permanent Endowments, Expendable Endowmenls and Unrestricted Funds based on the opening carrying value of fixed asset investments and allocated across individual funds each year pro rata on their opening capital value. The Endowment Funds include £1.820,288 unrealised investment gain as at 31 December 2024 (31 December 2023: gain of £1,250,463}. The restricted funds have been established to provide assistance to particular categories of student as defined by the individu81 donors, wishes. 14 Connected Bodies The Trust is connected with the Royal Conservatoire of Scotland Endowment Trust and the Royal Conservatoire of Scotland Infrastructure Trusl. Durfng the year the Twst received £254.716 from Royal Conservatoire of Scotlar)d Endowment Trust12023: £600.0001. 30 ROYAL CONSERVATOIRE OF SCOTLAND TRUST {Establishod undor Deed of Trust datsd 30 April 1980) Bankors Virgin Money 30 St Vincent Place Glasgow G1 2HL Royal Bank of Scotland PLC 10 Gordon Street Glasgow G13PL Audltors Anderson Anderson & Brown Audit LLP 133 Finnieston Street Glasgow G3 8HB Sollcltors Morton Fraser MacRoberts LLP Capella. 60 York Street Glasgow G2 8JX Investmenl Managers RBC Brewin Dolphin 6" Floor, Atria One 144 Morrison Street Edinburgh EH3 8BR 31