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Annual Report and Financial StatementsFOR THE YEAR ENDED 31 JULY 2017

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CONTENTS01 Introduction

02 Report of the trustees

15 Statement of the board of trustees’ responsibilities

16 Independent auditor’s report to the trustees of the Royal Academy of Dance

18 Groupconsolidatedstatementoffinancialactivities

19 Group and charity balance sheets

20 Groupcashflowstatement

21 Accounting policies

24 Notes to the accounts

39 Structure

40 Advisers

Annual Report and Financial Statements 2017 01

INTRODUCTIONDuringtheperiodunderreview,theRoyalAcademyofDance(RAD)haslaunchedanumberofnewinitiativesaimedatfurtheringitsmissiontopromotethebenefitsofandincreaseaccesstodanceglobally.Wehavealsosoughttobuilduponourreputationforprovidingthehigheststandardsofteachingaroundtheworld.Amoredetailedoutlineofourworkcanbeseenonpage03,butherewehavehighlightedjustafewofourrecentsuccesses.

Webelievethatbehindeverygreatdancer,thereisagreatdanceteacher.Tothisend,wehavecontinuedtoinvestinensuringinternationalaccesstohighqualityteachertraining.

IntheUS,BostonConservatoryisinthefirstyearofprovidingstudentsstudyingaperformingartsdegreetheoptionto‘bolton’amodulethatqualifiesthemasRADRegisteredTeachers.Takeuphasbeenexcellent,withalmostathirdofalleligiblestudentselectingtotakepartinthisfirstyearalone.ThisreflectsthehighesteeminwhichtheRADbrandisregardedworldwideandgivesusthetemplateforanewpathwaytomembershipincountrieswhereaccesstoRADcoursescanbechallenging.

AnotherhighlightoftheyearwastheGenéeInternationalBalletCompetition–heldthisyearinSydney,Australia.Theeventattracted86oftheworld’sfinestyoungdancersfrom12countries,agedbetween15to19.TheGenéeisatrueshowcaseofthebestoftheRAD’sballetsyllabus,andformanycompetitors,alaunchpadtotheprofession.

TwonewandverydifferentRADprogrammeshavereallycapturedimaginationsthisyear:ProjectBandSilverSwans.

ProjectBwaslaunchedwiththesupportofourMaleDanceAmbassador,formerBirminghamRoyalBalletprincipal,IainMackay,inJune.ThiswasfollowedbyamassperformanceatKing’sCrossStationinOctober.Aglobalmassperformancevideo,createdthankstoSeenitcrowdsourcingtechnology,alsoinspiredperformancesinWashingtonStateintheUS,AberdeeninScotland,andBrisbaneinAustralia.

SilverSwanssawastellarresponsetothelaunchinSeptemberwiththesupportofAngelaRippon.120teachersweretrainedintheUKand,thankstoanewpartnershipwithLasVegas-basedteacherconvention,DanceTeacherWebLive,intheUStoo.Feedbackfromteachersandstudentsalikehasbeensomeofthemostaffectingwe’vereceivedthisyear.

Thishasbeenayearofinnovation,butalsoofconsolidation-ayearwhichhasseenthehighesteverannualentrytoRADexams,withparticularlystronggrowthinChina.AyearinwhichourSummerSchoolssoldoutinLondonandDevonand,globally,over2,000studentsattendedtheschoolsinItaly,Japan,Malaysiaforanintensiveandsustainedexperienceofdance.

And,ayearinwhichahugeamountoftechnologicalrenewalhastakenplacebehindthescenes,theproductsofwhich-ournewRADiusCRMandoperatingsystem–willrevolutioniseandmoderniseouroperationsinthecomingmonthsandyears.

AstheRADcontemplatesits100thbirthdayin2020weareconfidentthatweareconsolidatingourpositionasaworldleaderindanceeducationandexaminations.Thisextendstoourpositionasthepreferredmembershiporganisationforprofessionalteachersofdance,andasaleadingsourceofexpertiseandadvocacyforthebenefitsofdancetothewidercommunity.

02 Royal Academy of Dance

REPORT OF THE TRUSTEESTheTrusteesoftheRoyalAcademyofDance(RAD)presenttheirreportandauditedfinancialstatementsfortheyearended31July2017.Thiscontainsinformationtosatisfytherequirementsoftrustees’reportsundertheCharitiesAct2011,andtocomplywithcurrentstatutoryrequirements,theRAD’sCharterandtheStatementofRecommendedPracticeforAccountingandReportingbyCharities(2015).

TheRADisacompanycreatedbyRoyalCharteron31December1936andregisteredasacharityon16January1963inEnglandandWalesNo312826.AnamendedSupplementalCharterandBye-Lawswasapprovedon10December2008bythePrivyCouncil.TheRoyalAcademyofDance,RADanditsblocklogoareregisteredtrademarksintheEuropeanUnionandincertainothercountries.

Thisreportcontainsinformationaboutthegroupandcharity.Inthecontextofthesefinancialstatements,thegroupaccountsincludetheauditedaccountsofthecharityanditssubsidiaries,andthecharityaccountsincludetheauditedaccountsoftheRoyalAcademyofDanceintheUnitedKingdomanditsbranchesfortheyearto31July2017.Theentitiescomprisingthegroupandthecharityareshownonpage39.

TheRAD’sheadandregisteredofficeis36BatterseaSquare,LondonSW113RA.TheRADhasanumberofbranches,representativeofficesandsubsidiarycompaniesin32countries,inwhichitholds,eitherintrustoroutright,100%oftheissuedsharecapital.Italsohaseffectivecontroloveranassociationincorporatedunders21oftheRepublicofSouthAfrica’sCompaniesActwhichownsthefreeholdpropertyinSouthAfrica;YayasanRoyalAcademyofDanceIndonesia,anon-profitfoundation,basedinIndonesiaandRADDancing(Thailand)CoLtdwhereitholdsaminorityshareholding.

TheRADisanawardingorganisationrecognisedtoawardregulatedqualificationsinEngland,WalesandNorthernIrelandandisrequired,throughtheBoardofTrustees,toissueanannualStatementofCompliancetotheOfficeofQualificationsandExaminationsRegulation(Ofqual),QualificationsWalesandtheCouncilfortheCurriculum,ExaminationsandAssessment(CCEA).TheRADisalsorecognisedasanapprovedawardingbodyinScotlandbySQAAccreditation,partoftheScottishQualificationsAuthority.

AsanAlternativeProviderwithSpecificCourseDesignation,theRADissubjecttoreviewbytheQualityAssuranceAgencyforHigherEducation(QAA)undertheDepartmentforEducation’srequirementsforcoursesdesignatedforstudentloanpurposes.

ItisrequiredtoreportanysafeguardingincidentstotheCharityCommission;toOfqual,QualificationsWales,andCCEAwherethereisaneventwhichcouldhaveanadverseeffectinleadingtoalossofstandards,integrityorpublicconfidenceinqualifications,andtoOfstedaccordingtothecircumstances.

Principal activitiesTheRADprovidesdancetraining,danceteachereducation,anddanceassessmentservicestostudentsandteachers.Itisalso:

• aregistrationorganisationfordanceteachers,providingopportunitiesfortheeducationandtrainingofyoungpeopleandadultsindance,andemploymentopportunitiesfordanceteachers,

• ahighereducationprovider,deliveringprogrammesofstudyandassociatedqualificationsforaspiringdanceteachers,

• anawardingorganisation,devisingandadministeringaportfolioofexaminationsindancewhichformpartoftheassessmentprocessofcoursesofstudy,deliveredbyteachers,leadingtoproficiencyindanceatahighlevel,and

• theownerofBeneshMovementNotation–providerofprogrammesofstudyandqualificationsfordancenotators.

Its services can be accessed via www.rad.org.uk andthroughlocalwebsitesinternationally.

Strategic aims and achievements

Vision

Ourvisionistoleadtheworldindanceeducationandtrainingandberecognisedinternationallyforthehigheststandardsofteachingandlearning.Astheprofessionalmembershipbodyfordanceteacherswewillinspireandempowerdanceteachersandstudents,members,andstafftomakeinnovative,artisticandlastingcontributionstodanceanddanceeducationthroughouttheworld.

Mission

Ourmissionistopromoteandenhanceknowledge,understandingandpracticeofdanceinternationallybyeducatingandtrainingteachersandstudentsandbyprovidingexaminationstorewardachievement,sopreservingandextendingtherich,artisticandeducationalvalueofdanceforfuturegenerations.

http://www.rad.org.uk


Aims

Thecharitableobjectivessetoutinourcharter–toelevateandadvancetheartofdancebypromotingthecorrecttuitioninitshighestformsandtoadvanceeducationintheartofdance–arereflectedinfourstrategicobjectives,tobe:

1. theleadinginternationalauthorityondanceteachereducationandprofessionaldevelopment,

2. thepreferredmembershiporganisationforprofessionaldanceteachers,dancestudentsandotherswhowishtosupportandengagewithdance,

3. aninternationalleaderintheprovisionofexaminationsindance,and

4. recognisedasaleadinginternationalsourceofexpertiseandadvocacyforthebenefitsofdancetothewidercommunity.

AlloftheRAD’sfourstrategicobjectiveshavebeenaddressedthroughworkprogrammes,projectsandinitiativesacrosstheorganisation.

Strategic Aim 1: to be the leading international authority on dance teacher education and professional development.• Duringtheyearunderreview,502graduatesacross30countriesenteredFacultyofEducation(FoE)programmesofstudy.

• WepartneredwithBostonConservatoryatBerklee,USAtodelivertheAccessRoutetoRADRegisteredTeacherstatusaswellasagreeingtodelivertheProfessionalDancers’PostgraduateTeachingCertificateforthefirsttimeinAustraliain2018.

• Recruitmenttouniversity-validatedprogrammesofstudy,however,remainschallengingduetoanincreasinglycompetitivehighereducationlandscape.

• TheBeneshInstitutecontinuedtodelivertheCertificateinBeneshMovementNotationandtheDiplomaforProfessionalBeneshMovementNotators.TheBeneshMovementNotationforBalletTeachersdistancelearningCPDcoursealsocontinuestobepopular.

Strategic Aim 2: to be the preferred membership organisation for professional dance teachers, students and all others who wish to support and engage with dance.• ThelaunchofRADius,ourintegratedCRMsystemandbespokeoperatingsystem,wasdelayedfromJuly2017toensurea

robustproduct,butlaunchedinternallywithintheUKinJanuary2018,andwillbegraduallyrolledoutworldwideoverthecomingyear.

• DancePromsinOctober2016wasthemostsuccessfuleventinitshistoryinticketsales,thenumberofnewschoolsentering(50)andthenumberofinternationalmembershipentries(14countries).

• TheGenéeInternationalBalletCompetitionwasheldinSydney,AustraliainDecember2016witharecordnumberofcandidatesandsold-outaudiences.Bylivestreamingthefinal,weopenedaccesstoourglobalmembership–600peoplesigneduptoviewthelivestream(underourtargetof900)from30differentcountriesand200cities.

• During2016/17,over4,307RADRegisteredTeachersparticipatedinsomeformofCPD.Ourportfolioincludesbothfacetofaceandonlinesyllabusandnon-syllabuscontent.Despiteourcommunications,around1,024teachersdidnotengagewithCPDduringtheyear.Wewillcontinuetoaddressthisin2017/18.

• Twenty-sevenstudentssuccessfullycompletedtheFoE’snewpathwaytoRADRegisteredTeacherStatus(RTS).

• RADEnterprises(RADE)finishedtheyearwithasurplusnearly£0.1muponourprofittarget–allofwhichisGiftAidedinsupportoftheRAD’scharitableobjectives.Thiswasdrivenmainlybytheperformanceofthesyllabusappwhichcontinuestoexceedexpectation.TheeBookincomparisonhasnotperformedsowellascustomersseemtoprefertoeitherreferencetheapportheirexistingWordnotes.Wewillcontinuetomonitoradvancesintechnologytoidentifyhowwecanbestmeetcustomerdemandforsuitabledigitalproducts.

• RADEsecuredInternationalDanceSuppliesasanewmanufacturerforlicenseduniformwear,complementingoffersfromexistinglicenseesandprovidingcustomerswithmorechoice.TherangelaunchedworldwideinJanuary2017.

• RADEoversawtheproductionofDiscoveringRepertoireteacherresourcesreleasedinJanuary2017,commissioningtheEnglishNationalBalletOrchestraforthevariationscomplementingthepianopieces.Workalsostartedondesignofanewuniformwearrangefortheprogramme.

Strategic Aim 3: to be an international leader in the provision of examinations in dance.• TheRADdelivered238,743examinations,classawards,soloperformanceawards,presentation,anddemonstrationclasses

aroundtheworld–anincreaseof0.1%onlastyear.

• InJanuary2017,afive-dayresidentialExaminers’SeminarwasheldinLondonwith194examinersfrom25countriestakingpartinstandardisationexercises.

• WesuccessfullymaintainedrecognitionofregulatedqualificationsbythefourUKexamsregulators.ThePrimaryinDanceexamandSoloPerformanceAwardsatGrades1-5alsobecamerecognisedinScotlandbySQAAccreditation.

• Weproducedafour-minutepromotionalvideopromotingRADexamsinSeptember2016tocommunicatethequalityofexamsandsyllabuscontent.Thefilmhasbeenviewedover26,000times.


Strategic Aim 4: to be recognised as a leading international source of expertise and advocacy for the benefits of dance to the wider community.• AtallSummerSchools(crossing16/17and17/18financialyears),516studentsjoinedusintheUKfrom39countries.

• InpartnershipwithRADAustralia,wedeliveredthe‘DanceEducationintheTwenty-FirstCentury:PracticeandInnovation’conferenceinSydney2016.

• TheEnAvantteachersconferencewasalsoheldinToronto,andwith267attendees.Whilsttheeventreceivedhugelypositivefeedback,itdidincuraloss.

• TheFoEprospectusreceivedaGoldAwardforBestProspectusfromaSpecialistInstitution,2017.

• Phase1oftheSilverSwanspilotprogrammeranfromFebruary2017,offeringCPDworkshopstoqualifiedballetteachers,trainingthemtodeliverclassesfortheover55smarket.TheworkshopsinLondon,BirminghamandLasVegas(inanewcollaborationwithDanceTeacherWeb)soldoutwithinthefirstfewdays,andbytheendofJulywehad120qualifiedteacherslicensedtoteachSilverSwansclasses.

• ProjectB,createdtoinspireboysandmenofallagestodance,waslaunchedon1June2017attheMandarinOrientalHydePark.Theinternationalcampaignofferedthechancetogetinvolvedinlearningapieceofspecially-createdchoreographyforboysbyourMaleDanceAmbassadorviaSeenit.Weattracted70contributorstotheprojectwhosubmitted360videos.

• Lobbyingonkeyissuesfordanceteachersandthewiderdanceindustrycontinued,buildingonrecentsuccessinthemainstreampress,highlightingtheimportanceofqualifieddanceteachers.

• Athought-provokingarticleinDance Gazetteabouttheuseoftouchinthedancestudio,waspublishedintwointernationaldancemagazines,accompaniedbyashortenedwebpieceandsocialmediaposts.Theresultingdiscussionanddebate,underlinedtheRAD’sauthoritativevoice,whilehighlightingtheneedtoensureparentschecktheirdanceteachershaveappropriatesafeguardingprocedures.RADteachersalsosharedthecontent,directingfollowerstotheirownsafeguardingpolicies.

• Pop-upeventstookplaceinKing’sCross(London)inOctober2016,SydneyinDecember2016,andBirminghaminJuly2017.ThesearedesignedbothtoraisetheprofileoftheRADinapublicspace,andtoofferperformanceopportunitiesforstudentsofmemberschools.

• The10thanniversaryofStepintoDancewascelebratedatStepLive,whichtookovertheRoyalFestivalHallforafulldayinJuly2017.

Strategic Plan

By2020weaimto:

• increaseourworldwidemembershipto20,000acrossallcategories

• deliver254,000danceexaminationseachyear,and

• generatenetunrestrictedincomeof£1min2019/20,aimingtoensurethatwecanmovetoournewheadquarterswithoutimpactingdeliveryofourstrategicobjectivesandmaintaininggroupreservesinlinewithpolicy.

Ourinterimtargetsfor2016/17wereto:

• increaseworldwidemembershipto14,000.Actualmembershipatendof2016/17was13,870–broadlyinlinewiththistarget

• deliver231,000danceexaminations.Actualexaminationnumberswere238,743–around3%aheadoftarget

• generateanetunrestrictedincomeof£490,000.Actualnetincomewas£392,000–thoughthisincludedanadjustmenttothedepreciationbasis,followingreview,oftheLondonheadquartersof£150,000;adjustingforthis,actualnetincomewas£542,000–around11%aheadoftarget.

Our interim targets for 2017/18 are to:

• increaseworldwidemembershipto14,000aheadofrepositioningourAffiliate&FullMembercategories

• developnewyouth-focusedcategories,inordertoproduceastepchangeinmembershipnumbersby2020

• deliver239,000danceexaminations,and

• generateanunrestrictednetincomeof£0.5m.

Delivering on the plan

Tomeetthesetargets,plannedprojectsandinitiativesacrosstheorganisationin2017/18are:

• thelaunchofRADius,ourintegratedCRMsystemandbespokeoperatingsystemforourMembership,ExaminationsandEducation activities

• thelaunchofDiscoveringRepertoire,aflexible,modular,classicalballetperformanceprogrammetaughtatthreelevelsforstudents aged 12 to adult

• anewfundraisingstrategytofundthemovetothenewheadquarters,andbursariesthroughsponsorshipfromcharities,trustsandfoundations.Wewillalsoagainlooktoengagemajordonorsandcorporationsthroughstrategicpartnerships

• expansionofourSilverSwansCPDprogrammeforolderlearners,followingsuccessfulpilotsintheUKandUS

• continuedplanningforthemovetoournewheadquarters

• togrowexistingmarketsthroughthedevelopmentofnewexaminationsandassessments,andtodevelopnewmarkets,and

• lobbyingonkeyissuesfordanceteachersandthewiderdanceindustry.


Corporate and Social Responsibility

Public benefit

TheRADisacharityregisteredinEnglandandWales.TrusteesarerequiredtohaveregardtoanyguidancetheUK’sCharityCommissionpublishesonpublicbenefitandtoensurethattheycarryoutthecharity’saimsforthepublicbenefitwhenevertheexerciseofanypowersordutiesmayberelevant.

ThecharitableobjectsoftheRADassetoutinitsCharterareto:

1. elevateandadvancetheartofdancebypromotingthecorrecttuitionofdanceinitshighestforms,and

2. advanceeducationintheartofdance,inparticularby:

• providingfacilitiesfordance,danceeducationandtraining

• settingupandmaintainingprogrammesofstudyfortheeducationandtrainingofdancers,teachersandnotatorsofdance(suchprogrammestoinclude,butnotbelimitedto,thestudyofBeneshMovementNotation,wheneverappropriate)

• settingandconductingexaminationsindanceandtheteachingofdance

• educating,training,assessing,registering,licensingandcharteringteachersofdancewhomeetstandardsdeterminedbytheBoardfromtimetotime,and

• promotingteachingofdance.

ThetrusteeshavereviewedtheseaimsandconsiderthattheactivitiesoftheRADmeetthetwomainprinciplesofpublicbenefit–thatthebenefitsareidentifiableandarerelatedtotheaimsoftheRAD,andthatthepublicarethebeneficiariesandthatthereisnosignificantexclusionastowhocanbenefit.

Corporate governanceThegroupreliesonarobustgovernanceframeworktosupporttheorganisation.Responsibilityforgoodgovernancelieswiththetrusteeswhoareaccountabletothemembers.ThetrusteesoverseetheRAD’sworldwideoperationsthroughatrusteeboardandeightseparatesub-committees.

Patron, president and officers

Patron HMQueenElizabethII

President Dame Darcey Bussell DBE

Chair of the Trustees Guy Perricone

Key Management (Executive Board) ChiefExecutive LukeRittnerCBEDirectorofStrategicDevelopmentandFundraising MatthewCunninghamMADirectorofEducationandTraining MichelleGrovesMABSc(Hons)BPhil(Hons)ArtisticDirector PaulaHuntARADRADTDipRTSMNZM(apptDec2016)DirectorofExaminations DrAndrewMcBirnieBAMMusPhDLTCLDirectorofMarketingandCommunications MelanieMurphyDipIPRMICPRDirectorofFinanceandOperations IanPogueBA(Hons)ACADirectorofGlobalMembershipServices SakinaZafarLLBLLMPGCE(apptAug2017)

Vice Presidents David Bintley CBE Dame Gillian Lynne DBE LiCunxin DavidMcAllisterOAMDameBerylGreyDBEDMusDLittDEdFRSA WayneSleepOBEDrIvorGuestMADUNIVFRAD SirPeterWrightCBEDMusDLittFBSM

Advisory Council JoyWBrown LadyPorterBarbaraFewsterOBEFISTD SirRoyStrongDLittPhDFRSAFRSLDr Stanley Ho OBE GrOIH Chev Leg d’Hon DSoc Sc CStJ

President and vice presidents

TheRADcurrentlyhaseightelectedvicepresidents.ThepresidentandvicepresidentsmaynotbeFullMembersoftheRADatthetimeofelectionbutaredeemedtobecomesofollowingelection.CandidatesfortheofficeofpresidentanduptoninevicepresidentscanbenominatedbyFullMembersorberecommendedbytheboardoftrusteesandareelectedbymembersattheAnnualGeneralMeeting(AGM).Sincetherevisionofthecharterin2008,thepresidentandvicepresidentselectedsincethatdatecanonlyholdofficeforamaximumoftwotermsoffiveyears,inaccordancewithclause52.7ofthebye-laws.


Advisory council

Thereisanadvisorycouncilwhichconsistsofthepresident,vicepresidents,andanyotherpersonsappointedbytheboard,whosepurposeistoprovideadvicetotheboardasitseesfit.Theadvisorycouncildidnotmeetduringtheyear.

International advisers

ThetrusteesmayappointuptofiveinternationaladviserswhoseordinaryresidenceisnotintheUKandwhomayattendmeetingsoftheboardoftrusteesinanadvisorycapacity.Therearenocurrentappointments.

The Board of Trustees

Theboardcomprisesamaximumoftwentymembers,ofwhichtenareFullMembersoftheRAD(ListA)andten,includingthechair,whomayormaynotbeFullMembersbutwhohavebeenrecommendedbytheboardaspersonslikelytobringskillsorexperienceinareasotherthandanceoreducation(ListB).

CandidatesfortheofficeoftrusteecanbenominatedbyFullMembersorrecommendedbytheboardoftrusteesandareelectedbymembersattheAGM.Trusteesareelectedtoholdofficeforatermofthreeyears,andmaybere-appointedfortwofurtherconsecutivetermsinaccordancewithclauses33–38ofthebye-laws.

Individualsmaybeco-optedbythetrusteestofillvacanciesarisingduringtheyear.

Theboard’sroleandresponsibilitiesaresetoutinformalTermsofReferenceandStandingOrders.

Therearecurrentlysixteenelectedtrusteesontheboard.

List A Trustees (Dance) List B Trustees (Business)ThérèseCantineARADDipPDTCRTS GuyPerricone(Chair)Deborah Coultish Adv Tch Dip RTS Joanna BinderSarahDickinsonARADAdvTchDipRTS JuliaBondPennyParksRADRTS ProfessorMichaelDayLynneReucroft-CroomeBA(Hons)MALRAD IdaLevineBAJurisDoctorJDJustineBerryPDTDPGCEMAARADRTS(apptApril2017) AlicesonRobinsonHilaryClarkARAD(dipPDTC)RTS(apptApril2017) CatherineWeateBADipEdLSDAFRSAHonFLAMImogenKnightBA(Hons)DipRADDipTD(NBS)ARAD AISTDRADSTC(apptApril2017) AndersIvarsonAIChor(resignedApril2017) BrianBrodie(resignedNovember2017)HelenTaylorRADRTS(resignedApril2017)

Meetings

Theboardholdsthreescheduledmeetingsinayear,plusanannualstrategyday.Comprehensivepapers,includingminutesofpreviousmeetings,arepresentedtotheboard.

Constitution

Thechairisresponsiblefortheleadershipandmanagementoftheboard.

Thechiefexecutiveisresponsiblefortheexecutiveleadershipandday-to-daymanagementoftheRADtoensurethedeliveryofthestrategyagreedbytheboard.Thechiefexecutiveissupportedbysevendirectors.

Training

Alltrusteesareprovidedwithahandbook,andtakepartininductionsessionswithseniorstafftofamiliarisethemselveswiththeworkoftheRAD.

Related parties

TheRADhasenteredintoanumberoftransactionswithrelatedpartiesduringtheyear.TheseareintheformofmanagementchargesmadetooverseasbranchesandsubsidiariestocoverthecostofadministrationofthegroupbyUKheadquarters,andfeesandexpensespaidtosixtrusteesintheircapacityasexaminers,tutorsormentors.Furtherdetailcanbefoundinnote13ofthefinancialstatements.


Independence

Trusteesarerequiredtosignacodeofconductonappointment.UptoonehalfofthetrusteesmayreceiveanemolumentforservicesrenderedtotheRAD,butwherethetrusteehasreceivedpaymentintheprecedingtwelvemonths,maynottakepartinanydebateorvoteconsideringemoluments,whetherspecificorgeneral,andshouldnotbepresentatameetingatwhichaspecificpaymenttothattrusteeisdiscussedoranappointmentwhichinvolvespaymentismade.

Trusteesarerequiredtodiscloseanythirdpartyinterestsannuallyandtodiscloseanygiftsreceived.

Indemnities and insurance

InaccordancewithArticle6(h)oftheRAD’scharter,theRADtakesoutindemnityinsuranceaspartofitsglobalpolicytoindemnifyitagainstlossarisingfromtheneglectordefaultofitstrustees,employeesoragentsandtoindemnifythetrusteesandotherofficersagainsttheconsequenceofanyneglectordefaultontheirpart.

Boardsub-committeesTheboardoperateseightsub-committees,createdunderbye-law40oftheRAD’scharter.Allsub-committeeshaveformalTermsofReferenceandStandingOrderswhicharereviewedannually.

Allsub-committeeshaveregularscheduledandunscheduledmeetings,andpapersaremadeavailabletoallsub-committeemembersandthoseinattendance.

Audit Sub-committee

TheAuditSub-committee’skeyfunctionistosupporttheboardinfulfillingitsresponsibilitiesinreviewingtheeffectivenessoftheRAD’sfinancialreporting,internalcontrolsandriskmanagement.Inadditionthesub-committeeconsidersthestatutoryaccountsandmeetsannuallywiththeexternalauditorstoreceiveanddiscusstheirreportontheannualaudit.

Aspartofthisrolethesub-committeeprovidesadvicetotheboardonwhetherthesefinancialstatementsarefair,balancedandunderstandableandprovidesallthenecessaryinformationformemberstoassesstheRAD’sperformance.

Trustee members Co-opted membersJuliaBond(Chair) JamesCaneFCAJoanna Binder Ida Levine BA Juris Doctor JD DirectorGuy Perricone Director of Finance and Operations

Thegroup’sexternalauditorsrequirecertainlocalauditorsofothergroupentitiestoreporttothem,andinadditionunderinternationalauditingstandardsarerequiredtoconsideriftheyshouldvisittheseentities.TheCanadianoperationwasvisitedbytheexternalauditorsinNovember2017.TheirfinalreportisprovidedtotheAuditSub-committeeaspartoftheirreviewoftheaudit.

Theboardrecommendstomembersthataresolutiontore-appointDeloitteLLPbeproposedatthe2018AGM.

Finance Sub-committee

TheFinanceSub-committeeadvisestheboardoftrusteesonallfinancialmattersandconsidersthemanagementandfinancialaccounts,budgetsandfinancialresourcesofthegrouptogetherwiththestrategicplanpreparedonafive-yearrollingbasiswithannualrevisions.Thesub-committeealsoassessestheriskstowhichtheRADisexposed,andconsidersanyothermattersofalegal,statutoryorfinancialnaturebroughttoitsattention.

Whenconsideringtheannualbudgets,italsodeterminesthegeneralsalarypolicytoapplythroughoutthegroup.Ithasfourscheduledmeetingsayear.

Trustee members Co-opted membersJuliaBond(Chair) JamesCaneFCAJoanna Binder Ida Levine BA Juris Doctor JD DirectorGuy Perricone Director of Finance and Operations


Nominations and Remuneration Sub-committee

TheNominationsandRemunerationSub-committeeensuresthatthereisaformalandappropriateprocedurefortheappointmentofkeytrusteesandmanagementattheRAD,andconsiderstheremunerationofkeymanagementbyreferencetotherolesperformedandmarketrates.ItalsoconsiderstherecipientsfortheawardoftheQueenElizabethIICoronationAward,FellowshipsoftheRoyalAcademyofDance,andPresident’sAwards.

Membershipisdrawnfromthechairsoftherespectivesub-committees:

Members GuyPerricone(Chair) BoardofTrusteesJoanna Binder Board of Directors of Royal Academy of Dance Enterprises LtdJulia Bond Finance ProfessorMichaelDay EducationPennyParksRADRTS RegionalAlicesonRobinson GlobalMembershipandMarketingCatherineWeate ArtisticandExaminations

Theremainingsub-committeesrepresentthemainactivitiesorfunctionsoftheRAD.Membershipofsub-committeesismadeupoftrusteesandco-optedmembersrecruitedfortheirrelevantskillsandexperience.Eachofthesub-committeeshasachairwhoisatrusteeandatleastonedirectorinattendancewiththerelevantspecialism.Allmembersoftheexecutiveboardmayattendthesesub-committees.Thechairmanoftheboardoftrusteesisanex-officiomemberofeachsub-committee.

Artistic and Examinations Sub-committee

TheArtisticandExaminationsSub-committeeadvisesandsupportstheartisticdirectorandthedirectorofexaminations(andotherdirectorsasappropriate)onadvancesandchangesinthedance,artsandeducationsectorsthatmayimpactontheworkandpoliciesoftheexaminationsboardandtheRAD.Thesub-committeeseekstoensurethattheRAD’sartisticpolicyandstandardsofexaminationaremaintainedandenhanced;thattheexaminationsboardisfullyaccountable,complieswiththerequirementsoftheexternalregulators,andmaintainsthehigheststandardsofefficiencyandqualityassuranceinitspoliciesandprocedures;andthatcommunity,competitions,outreachprogrammesandothersimilarareasoftheRAD’sworkareartistically,practicallyandfinanciallyviable.

Trustee members Co-opted membersCatherineWeate(Chair)BADipEdLSDAFRSAHonFLAM IainMackayThérèseCantineARADDipPDTCRTS StirlingWoodDeborahCoultishAdvTchDipRTS PhilippaBunting(apptNovember2017)PennyParksRADRTSJustineBerryPDTDPGCEMAARADRTS NormanGealyMACPsycholFCIPDFCIEA(resignedNovember2017)(apptNovember2017) CarolineJenkinsARADRTS(resignedNovember2017)HilaryClarkARAD(dipPDTC)RTS(apptJune2017) MoiraMcCormackARADPDTCDipRADLondon (resignedNovember2017) DavidNixon(resignedNovember2017)

Directors Artistic Director DirectorofExaminations

Education Sub-committee

TheEducationSub-committeeadvisesandsupportsthedirectorofeducationonadvancesandchangesineducationthatmayhaveanimpactontheworkandpoliciesoftheFacultyofEducationandtheRAD.Thesub-committeeseekstoensurethatallprogrammesofstudyarefullyaccountable,developedandmaintainedtothehigheststandards;andarefinanciallyviable.

Trustee members Co-opted membersProfessorMichaelDay(Chair) FlorinBisset(UniversityofBathrepresentative)LynneReucroft-CroomeBA(Hons)PGCELRAD ProfessorTinaChenFISTDMADipRBSTTCARADHilaryClarkARAD(dipPDTC)RTS(apptJune2017) HarriettHarper PaulaScalesMTDBA(Hons)PGCERTSStudent representatives ProfessorLornaUnwinDrTrishMelton(Postgraduate)MeganClayton(Undergraduate) Director Director of Education

In2017theresponsibilitiesoftheBeneshSub-committeeweretransferredtotheEducationSub-committee.


Global Membership and Marketing Sub-committee

In2017theMarketingandMembershipSub-committeewasrenamedtheGlobalMembershipandMarketingsub-committee,toreflecttheincreasinglyinternationalnatureoftheRAD’sactivities.Itadvisesandsupportsthedirectorofmarketingandcommunications,andthedirectorofglobalmembershipservices,onmattersrelevanttothemarketingandpromotionoftheRAD’sprojects,eventsandservices.Italsoadvisesandsupportsthedirectorsandtheirteamsinactivelypromotingtheskills,knowledgeandexpertiseofitsmembersandprovidingsupportservicesandmembershipbenefitsforitsmembersthroughouttheirprofessionalcareers.Thesub-committeealsoseekstoensurethattheRAD,asamembershiporganisation,upholdstheaimsandobjectivesoftheCharteranditsbye-lawsinanopenandtransparentway,andthatitisfairinallitsdealingswithmembersoftheRADandthepublic.

Trustee members Co-opted membersAlicesonRobinson(Chair) VikkiAllportdeOrbeTchDipRTSCatherineWeateBADipEdLSDAFRSAHonFLAM KarenHarrisTchCertRTSBrianBrodie ShelleyIsaac-ClarkeTchDipRTSImogenKnightBA(Hons)DipRADDipTD(NBS)ARADAISTDRADSTC Directors DirectorofMarketingandCommunications DirectorofGlobalMembershipServices

Regional Sub-committee

TheRegionalSub-committeeadvisesandsupportsthedirectorofglobalmembershipserviceswhoalsohasresponsibilityforUKregionalmattersthatmayhaveanimpactontheworkandpoliciesoftheRAD.Thesub-committeeseekstoensurethattheRADisfullyaccountabletoitsmembersandmaintainsthehigheststandardsinallareasofitswork.Thetermsofreferenceofthecommitteedeterminethattheincumbentchairisputforwardtotheboardoftrusteesoninitialelectionasaco-optedtrusteeandsubsequentlyrecommendedforelectionattheAGM.

Chair and Trustee Director PennyParksRADRTS(SouthEastEngland) DirectorofGlobalMembershipServices

Co-opted membersPaulDoyleTchCertRTS(Ireland&NorthernIreland)ReenaBhattarcharjee(London&Middlesex)CarolinePeters(Midlands&EastofEngland)LornaProctorRADRTS(NorthernEngland,Yorkshire&theHumber)YvonneGrayRADRTS(Scotland)NickyJenksRADRTS(SouthWestEngland,Wales&ChannelIslands)

Board of the Royal Academy of Dance Enterprises Ltd (RADE) Enterprises Sub-committee

TheBoardoftheRADEalsoactsastheEnterprisesSub-committeeoftheRAD.ItsmembersaremadeupofdirectorsofthecompanyandtrusteesoftheRAD.

RADEisaseparatelyconstitutedprivatelimitedcompanywhollyownedbytheRAD.ItistheprimarypublishinganddistributionarmfortheRADanditsexaminationboard.Itretailsexaminationsyllabiinvariousmediaincludingprint,audio-visualandapps,aswellasrecommendeduniformwear,teachingresources,dance-relatedproductsandgiftitems.Itsproductsaresoldanddistributedthroughitswebsite,mailorder,printedcatalogues,bookdistributors,RADbranchesandtheRADitself.

TheEnterprisesSub-committeeconsidersthemanagementandfinancialaccounts,budgetsandfinancialresourcesoftheRoyalAcademyofDanceEnterprisesLtdinthecontextofitsrelationshiptotheGroup.Thesub-committeealsoassessestheriskstowhichthecompanyisexposed,andconsidersanyothermattersofalegal,statutoryorfinancialnaturebroughttoitsattention.

Company Directors Trustee membersJoannaBinder(Chair) GuyPerriconeLukeRittnerCBEIan Pogue Co-opted members MarkRichardson(co-optedNov2017)

Theboardandsub-committeemeetsfourtimesayearandadvisestheFinanceSub-committeeandtheRAD’sBoardofTrusteesonallmatterspertainingtoRoyalAcademyofDanceEnterprisesLtd.


Principalrisksanduncertainties

Governance, risk and control

Thetrusteesareresponsibleforthegroup’ssystemofinternalcontrolandriskmanagementandconsiderthistobefundamentaltotheachievementoftheRAD’spolicies.Someofthekeyelementsofthegovernance,riskandcontrolframeworkinwhichtheRADoperatesaresetoutbelow.Theworkofthetrustees,sub-committees,managementandstaffareattheheartofitsprocesses.Theboardapprovesstrategicplansandannualbudgets,reviewsquarterlyresultswithcomparisonsagainstforecast,requestsanalyticalreportsasandwhennecessaryanddebatestopicsrequiringattention.Therelevantsub-committeesreceivepapersandprovideassurancetotheboard.Thetrusteesreviewtheeffectivenessofgovernance,riskandcontrolthroughthisreportingmechanismaswellasmanagementconcernsraisedbytheexternalauditorthroughtheAuditCommittee.Aswithanysuchsystem,theprocessesaredesignedtomanageratherthaneliminatetheriskoffailuretoachieveobjectivesandcanonlyprovidereasonableandnotabsoluteassuranceagainstmaterialmisstatementorloss.

Operational Risk Management Committee

Thechiefexecutive,directors,andseniorheadsofdepartmentsactastheBusinessContinuityCommitteeintheeventofadisaster.TheyalsoconsidertheCorporateandActivityRiskRegisters.

Exposure to risk

ManagementreviewstheriskstowhichtheRADcouldbeexposed,particularlyintermsofgovernance,operationsandfinance,onanongoingbasis.Risksareassessedforlikelihoodandseverityofimpact.Thisinformationisthenusedtodevelopariskmanagementstrategy,includingtheidentificationofexistingoperationalcontrolsandanynewcontrolsthetrusteesconsidernecessary.Anumberofrisksanduncertaintieshavebeenidentified:

• Marketplace and products

Otherawardingorganisations,whoofferdanceexaminationsacrossmultiplegenresatalowercost;andhighereducationbodiesthatofferplacesfundedbygovernment,competeagainsttheRADwhichfocusesonasinglegenre.MembersmayforonereasonoranothernolongerwishtoretainmembershipoftheRADortouseourproductsandservices.Achangeinsyllabuscanhaveanadverseeffectontheabilityofteacherstocontinueprovidingcandidatesforexaminationatpreviouslevelsduetothechallengesofacquiringnewknowledgeandpassingitontothecandidatebase.

Inmitigationoftheserisks,theRADusesinternalimpactstatementstoassessrisk,andusingthefullforceofsocialmediatopublicise,promoteandsellitsproductsandservices.

• Foreign exchange

TheRADoperatesinmanyjurisdictions,settingitsfeesinlocalcurrencies,whileatthesametimeincurringcentralcostsbasedinsterling.Itsresultsarethereforepronetofluctuationsduetocurrencygainsandlosses.

Itisdifficulttoforecastmovementinforeignexchange,particularlyinlightofongoingBrexitnegotiations,andthereforetheRADmaintainsawarenessofmovementsincurrencywhichmightadverselyaffectitsperformance.Thisisthenconsideredinmakingdecisionsconcerningtimingofmovementsoffundsbetweencountries.

• World events

TheRAD,likeallinternationalorganisations,ispotentiallyvulnerabletopandemics,naturalphenomenaandchangesinweatherpatterns,andtocivilwarandterrorism.Allofthesemayimpedeorpreventtravelbybothexaminationcandidatesandcourseattendees,andbyRADstaffsuchasexaminersandtutors,therebyreducingbusinessandassociatedincome.Wehavedevelopedpoliciesandprocedurestominimisethelossofincomecausedbysuchevents,andtoensurethesafetyofstaffandexaminers.

• Economic climate

Incommonwithmostorganisations,theRADisvulnerabletochangesintheglobaleconomicclimate.Ourcorebusinessdependsonthepurchasingpowerofitscustomersandwehavenocontrolovertheirfinancialcircumstances–whethermember,teacher,examinationcandidate,highereducationstudentordanceclassattendee.

ItisdifficulttoforecasttheeffectsoftheeconomicclimateonindividualcustomersandthereforetheRADendeavoursthroughbetterplanningtoreacttodownturnswhichmightadverselyaffectitsperformance.However,theglobalreachoftheRAD’soperationshelpstomitigateagainstthisrisk,asmarketsexperiencingstrongeconomicconditionscansupportthoseinadownturn.

• Statutory and regulatory compliance

Thecomplexityofthegroupstructurecouldleadtonon-compliancethroughoversight,lackofknowledgeortraining,atbothlocalandgrouplevel.Non-compliancecanleadtolossofstatus,recognition,reputation,confidence,customersandtheimpositionofpenalties.Tomitigatethisrisk,subjecttoconsiderationsaroundcostandbenefit,theRADemploysqualifiedpersonnelatgroupandlocallevels,andworkswithregulatoryorstatutoryauthoritiestoensurecompliance.


• People

Workingwithyoungpeoplebringssafeguardingresponsibilities.TheRADhasaSafeguardingCommitteewithdesignatedsafeguardingofficers,andreviewsitspoliciesannually.Trainingneedsareidentifiedandaddressed,andtheRADworkswithlawyersorotherprofessionalstoensurepoliciesarefitforpurpose.

ThebehaviourofmembersandorganisationsassociatedwiththeRADcanleadtoreputationalloss.TheRADperformsduediligencebeforeenteringintopartnerships,ensurescontractsareinplace,andoperatesCodesofConductandProfessionalPractice.

HighturnoverofstaffcouldexposetheRADtolackofcontinuityandlossofknowledge.TheRADundertakesperformancereviewstoensurethattherightstaffareretained,andoffersarangeofbenefits.Successionplanningisundertakenforseniorstaff.

TheserisksanduncertaintiesareincludedintheCorporateandActivityRiskRegistersalongwithactionstomitigatethem.AfurtherfunctionoftheriskregistersistoinformbusinesscontinuityplanswhichareunderpinnedbyanoffsiteITdisasterrecoverycentretoprovidethenecessarytechnologicalbackupinthecaseofunforeseenevents.

Financial Risk

TheRADdoesnothaveaseparateFinancialRiskManagementCommittee.ThisfunctionisassumedbytheFinanceSub-committeeandtheAuditSub-committee.

Thefollowingareconsideredtobekeycontrolproceduresinaddressingfinancialrisk:

• Quality and integrity of personnel

ItistheRAD’spolicytoinvestintherightpeopleneededtosupportitsoperations.IthasdevelopedaseriesofHumanResourcepolicies,themostimportantofwhichareEqualityandDiversity,HealthandSafety,DataProtectionandSafeguarding,sothatemployeescanstrivetoimprovefairnessandsafetybothintheworkplaceandfortheRAD’scustomers,ensurecompliancewithlegalresponsibilitiesandtorespectoneanother.

EachoftheseareashasapolicygroupwhichmonitorstheRAD’scompliancewiththerelevantareaandwhichreportsdirectlytoseniormanagement.

Allpoliciesandproceduresarereviewedandapprovedannuallybythetrusteesandchangesarebroughttotheattentionofemployees.RegularfiredrillstakeplaceattheRAD’spremises.

• Operating unit financial controls

AControlsManual,whichisupdatedannually,setsoutthekeydisciplinesexpectedofstaffinmanagingtheirrole,responsibility,operationorentity.Themanualformspartofanemployee’sinductionandcanbefoundontheRAD’sinternalHRhomepage.

Thecentralfinanceofficefunctionperformscomparisontestsontheresultsofbranches,subsidiariesandoffices,andundertakesvisitsduringtheyear.Managementensuresthatqualifiedfinanceprofessionalsareappointedtoseniorpositionsoffinancialresponsibility.ThetrusteeswillcontinuetoconsiderwhetherthegrowthoftheRADwarrantstheappointmentofaninternalauditfunction,resourcespermitting.

• Information and computer systems

TheRAD’sfinancialandmanagementinformationisprocessedandstoredonanumberofcomputersystems.Thiscanleadtoconcernsofintegrity,duplication,securityandotherdataissues.AdisasterrecoverycentreoperatesintheUK.Back-upsystemsareinstalledinmajorinternationaloffices.

TheRADisawarethattheDataProtectionlawischangingtotheGDPRandunderstandstheimpacttotheorganisationandourstaff.WehaveidentifiedareasthatcouldcausecomplianceissuesundertheGDPRandhavedevelopedaroadmapforaddressingtheseacrosstheorganisation.

TheRADsetsoutdataprotectioncomplianceinaframeworkofpoliciesandprocedures.Wemonitorcompliancewithdataprotectionpoliciesandregularlyreviewtheeffectivenessofdatahandling/processingactivitiesandsecuritycontrols,and are implementing a basic GDPR training programme for all staff supplemented by a needs based data protection training programmeforallstaffacrossdifferentfunctionsandatdifferentlevels.


FINANCIALREVIEW

OverviewThefinancialstatementshavebeenpreparedinaccordancewiththeCharitiesSORP(FRS102),applicablefrom1January2015.

Unrestricted activitiesTheworldwideGroupreportednetincome,beforetransfersandotherrecognisedgainsandlosses,of£405,000 against net income of £307,000 lastyear.Thiswasafterone-offprofessionalfeesinrelationtotheplannedrelocationofLondonheadquartersof£230,000(2016£336,000).Inaddition,anadjustmenttothedepreciationbasisfortheLondonheadquartersresultedinadditionaldepreciationof£150,000.Adjustingfortheseone-offcostsandthechangeindepreciationbasis,theunderlyingsurpluswas£785,000.Overallexaminationnumberswereagainthehighesteverat239,000thisyear,upveryslightlyonprioryear.

Unrestricted income for the Group increased around 12% to £21,497,000 from £19,162,000,whileoverallexpenditurealsoincreased by around 12% to £21,075,000 from £18,843,000.AsubstantialpartoftheseincreasesisduetothedeclineinsterlingsincetheEUReferendum,giventheinternationalnatureoftheRAD’sactivities

ThevalueoftheRAD’sunrestrictedassetsincreasedby£1,062,000comparedtoanincreaseof£838,000intheprioryear.Inadditiontonetincome,therewasagainonrevaluationoftangiblefixedassetsof£522,000,andanexchangegainof£135,000onconsolidation.

Restricted activitiesTheRADhasanumberoffundswhichhavebeenbuiltupfromdonations,legacies,trusts,grants,fundraisingeventsandappeals.TheseareadministeredinaccordancewiththeaccountingpolicyinNote1(n)FundAccounting.ThefundsaredividedintotwocategoriesasshowninNote25oftheseFinancialStatements.Therewasnetincomeof£51,000,beforetransfersandotherrecognisedgainsandlosses,fortheyearto31July2017(2016:netexpenditure£74,000).Themainmovementswere:

TheRADisinreceiptofathree-yearfundinggrant(2015/16–2017/18)fromtheJackPetcheyFoundationtoruntheStepintoDanceprogramme(afullyinclusive,communitydanceprogramme–193secondaryschoolsineveryLondonborough,andinsomeEssexschools)aswellasraisingitsownfunds.AllmoniesreceivedfromtheFoundationwerespentinaccordancewiththeprogramme’saims.Netincomeof£26,000reflectsthetimingofgrantreceiptcomparedtoexpenditure.

Bursaries,awardsandscholarshipswereawardedthroughvariousScholarshipFunds,Trusts,JubileeAwardandRegionalschemes.TheIrisTruscottfundreceivedsignificantlegacydonations(overallnetincomeof£16,000).Netincomeof£19,000totheRADiaterestrictedfundreflectsthetimingofgrantreceiptcomparedtoexpenditure.

Performance by activity Subscription incomeincreasedby11%to£1.2m,withoverallnetincomealsoup11%at£0.7m.ThenumberofRegisteredTeachersincreasedslightlyfrom7,632to7,783.Allothermembersincreasedslightlyfrom5,862to6,087.

Examination fees incomeincreasedby16%from£10.6mto£12.3m,withdirectexpenditureincreasingby21%from£5.8mto£7.1m.Thisresultedinanoverallincreaseofaround9%innetincomefrom£4.8mto£5.3m.Totalexaminationentriesincreasedveryslightlytoanotherrecordlevelof238,743(2016:238,499).Performancewasbroadlysteadyinmostregions,thoughChinasawverystronggrowthof29%inexaminationentriesagainstprioryear.

WithinEducationandtrainingfeesincome,Initial Education incomewasuparound£0.1monprioryearat£3.4m,withoverallnetincomesteadyataround£0.6m.Thenumberofstudentsonprogrammesdecreasedslightlyfrom1,274to1,210,mainlyduetoareductionininternationalstudentnumbersontheCertificateinBalletTeachingStudiesprogramme.IncomefromContinuing Educationincreasedby7%toaround£3.7m,drivenbygrowthinstudenteventsandactivities.However,increaseinCPDcostsmeantthatoverallnetincomefellfromaround£0.2mto£0.1m.

Trading income,togetherwithLicensing and royalty income,increased6%from£1.0mto£1.2m,reflectingstrongdemandfortheappsacrosstherangeofRADsyllabi,andtheintroductionofnewproductlines,includingluxurygiftitems,andco-brandingproductpartnerships.Coupledwithstrongcostcontrol,thismeantthatoverallnetincomeincreasedbyaround33%to£599,000.

All other incomeisderivedfromadvertising,rentalfromstudios,sundryincome,gainsonexchange,withassociatedexpenditureandtaxationonsubsidiarycompanyprofits.

Support costsrosefrom£6.4mto£6.8m,drivenbyincreasesinsalariesandpensionscosts,generaladministrationcostsanddepreciation,offsetbyareductioningovernancecosts.Thetranslationoftheeffectofexchangemovementscanhavetheeffectofincreasingordecreasingcost,whichwasparticularlyevidentin2016/17.


OperatingcashflowsandcapitalexpenditureTheGroup’soverallnetcashandloanspositionwas£5,907,000 compared to £6,794,000lastyear.

Therewasanetcashoutflowfromoperationsof£407,000comparedtoaninflowof£1,168,000 theyearbefore.Capitalexpenditureincreasedfrom£86,000 to £788,000reflectingtheinvestmentinthenewintegratedCRMsystem,RADius.Inaddition,theloanof£250,000fromHSBCwasrepaidduringtheyear.

TheRAD’smainbankerintheUKandinsomeoverseasterritoriesisHSBC.HSBCrenewedtheRAD’sgroupingfacilityof£700,000forafurtheryearinDecember2017;andRoyalAcademyofDanceEnterprisesLimited’soverdraftfacilityof£300,000 for afurtheryearinNovember2017.TheEnterprisesfacilitywasusedduringtheyeartomakegiftaidpaymentswithinthetimelimits,butwasunusedatyearend.

Net assets and reserves policyGroup net assets increased from £16,178,000 to £17,295,000 reflectingthenetincomefortheyear,andtherevaluationoftheaccumulatedfundsandrevaluationreserveattheendofthefinancialyear.

TheRAD’scurrentpatternofactivitiesprovidesfluctuatingpeaksinincomeandexpenditure,andareservespolicyisnecessarynotonlytocovertheseperiodiccashflowdeficitsbutalsotoensurethatitscoreactivitiescanbecoveredfrompressureonincomeandexpendituresuchasunforeseenemergencies,unforeseenday-to-dayoperationalcosts,incomethathasfallenbelowexpectations,orplannedcommitmentsthatcannotbemetbyfutureincomealone.

As of 31 July 2017 the Group’s readily realisable reserves stood at £2,922,000(2016:£2,925,000),withreadilyrealisablereservesintheUKof£228,000 (2016:£254,000).

TheRADhasacurrentreservespolicybasedonthreemonths’costs.Thiswouldrequirefreegroupreservesof£2,998,000(UK£1,930,000).Therefore,whilstgroupreservesarebroadlyinlinewithpolicy,thoseintheUKarenot.Thetrusteesarecurrentlyreviewingthereservespolicy,andwillcontinuetodistributeavailablereservesbasedonstrategicpriorities.

Going concernThetrusteesrecognisethattheRADmustbeawell-managed,well-fundedandwell-governedorganisationtoachieveitsstrategicobjectives.Theybelievethatarobustbusinessmodelandcorporatestructurebackedbyasoundtechnological,marketing,communicationsinfrastructurewithgoodphysicalandhumanresourceswilldeliverthataim.

Therewasanetcashoutflowforthegroupof£1.8min2016/17,largelyreflectingcapitalexpenditureonRADius(around£0.8m)andrepaymentofthe£250,000HSBCloan,aswellasworkingcapitalmovements.Combinedwithrevaluationduetoexchangeratesof£0.6m,thisresultedincashandcashequivalentsof£6.1matyearend,comparedto£7.2matendofprioryear.Thegroup’sreadilyrealisablereservesarenowinlinewithcurrentpolicyofthreemonths’costs,reflectingperformanceinthelastthreeyears,thoughasnotedabove,thetrusteesarecurrentlyreviewingthereservespolicyforboththeUKandthegroup.Totalexaminations,thekeydriverofincome,areagainattheirhighestevernumber,reflectinggrowthinmanypartsoftheworld.

Netincomehasincreasedfromtheprioryear,andresultsfromunderlyingoperationsagainprovideastrongplatformfortheyearahead.SignificantcapitalinvestmentinRADiushasnowbeenlargelycompleted,andprovidesaplatformtodriveefficienciesinouroperationsintheyearsahead.Wearestillseeingstronggrowthinsomeofouroverseasmarkets,particularlyinAsia,andcontinuetodevelopnewinitiativessuchasSilverSwansandDiscoveringRepertoire.

ThetrusteesareconfidentthattheRADwillmeetitstargetsfor2017/18,andwillbeaimingforfurthergrowthinnetincomein2018/19.Theythereforeconcludethattherearenomaterialuncertaintiesasofthedateofthisreportwhichmaycastdoubtaboutthecharityandgroup’sabilitytocontinueasagoingconcern.


FutureoutlookWecontinuetomakegoodprogressagainstourStrategicPlantargetstoourcentenaryyearof2020of:

• securing20,000membersofallcategoriesworldwide

• delivering254,000danceexaminationseachyear,and

• generatinganunrestrictednetincomeof£1min2019/20.

TheRADisanincreasinglydiversifiedorganisation,operatingin85countriesincompetitiveandcomplexenvironments.ThetrusteeswillcontinuetoworktominimisetherisksanduncertaintiestheRADfacesinordertodeliveruponitsmissiontoitscustomersandtoensurethecontinuingdevelopmentofitsstudents,examiners,teachersandstaff.

ThehardworkofRADstaff,togetherwithsupportfromeveryone:president,vice-presidents,advisorycouncil,trusteesanditssub-committeemembers,examiners,tutors,teachers,studentsandparents,puttheRADinanexcellentpositiontodeliveruponitsmission.Wewouldasalwaysliketopaytributeandthankallthosewhosecontributionsanddedicationmakethispossible.

GuyPerricone LukeRittnerCBETrustee,BoardofTrustees ChiefExecutive

6March2018


STATEMENTOFTHEBOARDOFTRUSTEES’RESPONSIBILITIESThetrusteesareresponsibleforpreparingtheTrustees’AnnualReportandthefinancialstatementsinaccordancewithapplicablelawandUnitedKingdomAccountingStandards(UnitedKingdomGenerallyAcceptedAccountingPractice),includingFRS102“TheFinancialReportingStandardapplicableintheUKandRepublicofIreland”.

ThelawapplicabletocharitiesinEnglandrequiresthetrusteestopreparefinancialstatementsforeachfinancialyearwhichgiveatrueandfairviewofthestateofaffairsofthecharityandoftheincomingresourcesandapplicationofresourcesofthecharityforthatperiod.Inpreparingthesefinancialstatements,thetrusteesarerequiredto:

• selectsuitableaccountingpoliciesandthenapplythemconsistently,

• observethemethodsandprinciplesintheCharitiesSORP,

• makejudgmentsandestimatesthatarereasonableandprudent,

• statewhetherapplicableaccountingstandardshavebeenfollowed,subjecttoanymaterialdeparturesdisclosedandexplainedinthefinancialstatements,and

• preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethatthecharitywillcontinueinbusiness.

ThetrusteesareresponsibleforkeepingproperaccountingrecordsthatdisclosewithreasonableaccuracyatanytimethefinancialpositionofthecharityandenablethemtoensurethatthefinancialstatementscomplywiththeCharitiesAct2011,theCharity(AccountsandReports)Regulations2008andtheprovisionsofthetrustdeed.Theyarealsoresponsibleforsafeguardingtheassetsofthecharityandhencefortakingreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.

Thetrusteesareresponsibleforthemaintenanceandintegrityofthecharityandfinancialinformationincludedonthecharity’swebsite.LegislationintheUnitedKingdomgoverningthepreparationanddisseminationoffinancialstatementsmaydifferfromlegislationinotherjurisdictions.


INDEPENDENT AUDITOR’S REPORT TOTHETRUSTEESOFTHEROYALACADEMYOFDANCEOpinion

Inouropinionthefinancialstatements:

• giveatrueandfairviewofthestateofthegroup’sandtheparentcharity’saffairsasat31July2017andofthegroup’sincomingresourcesandapplicationofresourcesfortheyearthenended;

• havebeenproperlypreparedinaccordancewithUnitedKingdomGenerallyAcceptedAccountingPracticeincludingFinancialReportingStandard102“TheFinancialReportingStandardapplicableintheUKandRepublicofIreland”;and

• havebeenpreparedinaccordancewiththeCharitiesAct2011.

WehaveauditedthefinancialstatementsofRoyalAcademyofDance(the‘charity’)anditssubsidiaries(the‘group’)whichcomprise:

• thegroupconsolidatedstatementoffinancialactivities;

• thegroupandparentcharitybalancesheets;

• thegroupcashflowstatement;

• theaccountingpolicies;and

• therelatednotes1to28.

ThefinancialreportingframeworkthathasbeenappliedintheirpreparationisapplicablelawandUnitedKingdomAccountingStandards,includingFinancialReportingStandard102“TheFinancialReportingStandardapplicableintheUKandRepublicofIreland”(UnitedKingdomGenerallyAcceptedAccountingPractice).

Basis for opinion

WeconductedourauditinaccordancewithInternationalStandardsonAuditing(UK)(ISAs(UK))andapplicablelaw.Ourresponsibilitiesunderthosestandardsarefurtherdescribedintheauditor’sresponsibilitiesfortheauditofthefinancialstatementssectionofourreport.

WeareindependentofthegroupandoftheparentcharityinaccordancewiththeethicalrequirementsthatarerelevanttoourauditofthefinancialstatementsintheUK,includingtheFRC’sEthicalStandard,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

Conclusions relating to going concern

WearerequiredbyISAs(UK)toreportinrespectofthefollowingmatterswhere:

• thetrustees’useofthegoingconcernbasisofaccountinginpreparationofthefinancialstatementsisnotappropriate;or

• thetrusteeshavenotdisclosedinthefinancialstatementsanyidentifiedmaterialuncertaintiesthatmaycastsignificantdoubtabout the group’s and the parent charity’s ability to continue to adopt the going concern basis of accounting for a period of at leasttwelvemonthsfromthedatewhenthefinancialstatementsareauthorisedforissue.

Wehavenothingtoreportinrespectofthesematters.

Other information

Thetrusteesareresponsiblefortheotherinformation.Theotherinformationcomprisestheinformationincludedintheannualreport,otherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.

Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.Ifweidentifysuchmaterialinconsistenciesorapparentmaterialmisstatements,wearerequiredtodeterminewhetherthereisamaterialmisstatementinthefinancialstatementsoramaterialmisstatementoftheotherinformation.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.



Responsibilities of trustees

Asexplainedmorefullyinthetrustees’responsibilitiesstatement,thetrusteesareresponsibleforthepreparationofthefinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview,andforsuchinternalcontrolasthetrusteesdetermineisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Inpreparingthefinancialstatements,thetrusteesareresponsibleforassessingthegroup’sandtheparentcharity’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthetrusteeseitherintendtoliquidatethegrouportheparentcharityortoceaseoperations,orhavenorealisticalternativebuttodoso.

Auditor’s responsibilities for the audit of the financial statements

Wehavebeenappointedasauditorundersection144/151oftheCharitiesAct2011andreportinaccordancewiththeActandrelevantregulationsmadeorhavingeffectthereunder.

Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithISAs(UK)willalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

AfurtherdescriptionofourresponsibilitiesfortheauditofthefinancialstatementsislocatedontheFinancialReportingCouncil’swebsiteat:www.frc.org.uk/auditorsresponsibilities.Thisdescriptionformspartofourauditor’sreport.

Use of our report

Thisreportismadesolelytothecharity’strustees,asabody,inaccordancewithPart4oftheCharities(AccountsandReports)Regulations2008.Ourauditworkhasbeenundertakensothatwemightstatetothecharity’strusteesthosematterswearerequiredtostatetotheminanauditor’sreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthanthecharityandthecharity’strusteesasabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.

Report on other legal and regulatory requirements

Matters on which we are required to report by exception

UndertheCharities(AccountsandReports)Regulations2008wearerequiredtoreportinrespectofthefollowingmattersif,inour opinion:

• theinformationgiveninthefinancialstatementsisinconsistentinanymaterialrespectwiththetrustees’report;or

• sufficientaccountingrecordshavenotbeenkeptbytheparentcharity;or

• theparentcharityfinancialstatementsarenotinagreementwiththeaccountingrecordsandreturns;or

• wehavenotreceivedalltheinformationandexplanationswerequireforouraudit.


Deloitte LLPStatutory AuditorLondonUnitedKingdom

6March2018

Deloitte LLP is eligible for appointment as auditor for the charity by virtue of its eligibility for appointment as audit of a company undersection1212oftheCompaniesAct2006.


GROUPCONSOLIDATEDSTATEMENT OFFINANCIALACTIVITIESYear ended 31 July 2017

Notes

2017 2016Unrestricted

funds£000

Restrictedfunds£000

Totalfunds£000

Unrestrictedfunds£000


Totalfunds£000

Income and endowments from2 Donations and legacies 41 11 52 80 58 1383 Trading 891 - 891 787 - 7874 Other trading activities 368 106 474 321 43 3645 Investments 44 - 44 39 1 40

Income from charitable activitiesExaminationfees 12,348 - 12,348 10,645 - 10,645

6 Education and training fees 6,456 687 7,143 6,108 648 6,756Subscription income 1,235 - 1,235 1,116 - 1,116

7 Other income 114 - 114 66 - 66Total income and endowments 21,497 804 22,301 19,162 750 19,912

Expenditure8 Expenditureonraisingfunds (1,328) - (1,328) (1,135) - (1,135)9 Expenditureoncharitableactivities (19,639) (754) (20,393) (17,403) (829) (18,232)11 Otherexpenditure (108) - (108) (305) - (305)

Total expenditure (21,075) (754) (21,829) (18,843) (829) (19,672)

Netincome/(expenditure)beforeinvestment gains and losses

422 50 472 319 (79) 240

Investments held for investment purposes Realised losses (17) - (17) (12) - (12) Unrealised gains - 1 1 - 5 5

Net income / (expenditure) 405 51 456 307 (74) 233 Other recognised gains and lossesOnrevaluationoftangiblefixedassets 522 - 522 (290) - (290)Movementonexchangearisingfromtheconsolidation of branches and subsidiaries

135 4 139 821 5 826

Net movement in funds 1,062 55 1,117 838 (69) 769

Fundbalancesbroughtforwardat1August 15,353 825 16,178 14,515 894 15,409

Total funds carried forward at 31 July 16,415 880 17,295 15,353 825 16,178

Therewerenootherrecognisedgainsandlossesotherthanthoselistedaboveandthenetincomefortheyear.Allincomerelatestocontinuingoperations.


GROUP AND CHARITY BALANCE SHEETSYear ended 31 July 2017

Notes

Group Charity2017£000

2016 £000

2017£000

2016£000

Fixed assets18 Intangible assets 20 22 2 319 Tangible assets held for charitable use 13,412 12,335 13,246 12,16020 Investments 61 75 180 189

13,493 12,432 13,428 12,352

Current assets21 Stocks 441 388 185 17822 Debtors 2,426 2,329 3,275 2,684

Cashatbankandinhand 6,752 7,694 3,707 4,4729,619 10,411 7,167 7,334

23 Creditors – amounts falling due within one year (5,625) (6,461) (4,977) (5,231)

Net current assets 3,994 3,950 2,190 2,103

24 Creditors – amounts falling due after more than one year (192) (204) (192) (204)

Net assets 17,295 16,178 15,426 14,251

FUNDS

25 Restricted funds 880 825 874 819

26 Unrestricted fundsDesignated funds 300 279 300 279Accumulated funds 5,621 5,102 3,847 3,270Revaluation reserves 10,494 9,972 10,405 9,883

Total funds 17,295 16,178 15,426 14,251

Theaccompanyingnotesformpartoftheseaccounts.

ThesefinancialstatementswereapprovedandsignedonbehalfoftheBoardofTrusteeson6March2018by:

GuyPerricone JuliaBond LukeRittnerCBEChair,BoardofTrustees Trustee,BoardofTrustees ChiefExecutive


GROUPCASHFLOWSTATEMENTFor the year to 31 July 2017

2017 2016Restricted and unrestricted funds Notes £000 £000

a. STATEMENT OF CASH FLOWS

Cash flows from operating activities:Net cash (used in)/provided by operating activities b. (407) 1,168

Cash flows from investing activities:Interest receivable 44 40Interest payable (139) (147)Purchaseoftangiblefixedassetsandconstruction-in-progress (779) (72)Purchaseofintangiblefixedassets (9) (14)Investmentinjointventure - (35)

Net cash used in investing activities (883) (228)

Cash flows from financing activities:Amounts(repaid)/borrowedfromthebanks (265) 18

Net cash provided by financing activities (265) 18

Net cash used in overseas taxation (194) (230)

Change in cash and cash equivalents in the reporting period (1,749) 728 Cash and cash equivalents at the beginning of the reporting c. 7,244 5,633Changeincashandcashequivalentsduetoexchangerate 597 883

Cash and cash equivalents at the end of the reporting period c. 6,092 7,244

b. Reconciliation of net income to net cash flow from operating activities

Netincomeforthereportingperiod(asperthestatementoffinancialactivities) 456 233 Adjustmentsfor:

Impairment on investment (17) (12)Interest receivable (44) (40)Interest payable 139 147Amortisation of intangible assets 11 6Taxationpayable 194 230 Depreciation–tangiblefixedassets 24 195(Increase)/decreaseinstocks (53) 56(Increase)indebtors (97) (1,168)(Decrease)/increaseincreditors (789) 1,963Effectofforeignexchangeonnetassets (231) (442)

Net cash (used in)/provided by operating activities (407) 1,168

c. Analysis of cash and cash equivalents

Cash in hand 6,752 7,694Noticedeposits(lessthanthreemonths) - -Overdraft facility repayable on demand (660) (450)

Total cash and cash equivalents 6,092 7,244


ACCOUNTING POLICIESYear ended 31 July 2017

Notes

1(a) Basis of accountingThefinancialstatementshavebeenpreparedinaccordancewiththeCharitiesSORP(FRS102)applicabletocharitiespreparingtheiraccountsinaccordancewiththeFinancialReportingStandardapplicableintheUKandRepublicofIrelandandtheCharitiesAct2011andUKGenerallyAcceptedPracticeasitappliesfrom1January2015.TheRADmeetsthedefinitionofapublicbenefitentityunderFRS102.Assetsandliabilitiesareinitiallyrecognisedathistoriccostortransactionvalueexceptforinvestmentsandfixedassetswhichhavebeenincludedatrevaluedamounts.TheCharitymeetsthedefinitionofaqualifyingentityunderFRS102andhasthereforetakenadvantageofthedisclosureexemptionavailabletoitinrespectofitsseparatefinancialstatementsinrelationtopresentationofacashflowstatement.

Thefinancialstatementsarepreparedinsterlingwhichisthefunctionalcurrencyofthecharity.

1(b) Going concernTheseaccountshavebeenpreparedonthegoingconcernbasis.Incommonwithothercharities,theRADfacesuncertaintiesarisingfromcurrenteconomicconditions.Asexplainedinthereportofthetrustees,theplanningprocess,includingfinancialprojections,hastakenintoconsiderationthecurrenteconomicclimateanditspotentialimpactonthevarioussourcesofincomeandplannedexpenditure.Page13ofthisreportandstatementsdiscussestheseuncertaintiesandthetrusteesconcludethattherearenomaterialuncertaintiesasofthedateofthisreportwhichmaycastdoubtaboutthecharityandGroup’sabilitytocontinueasagoingconcern.

1(c) Basis of consolidationThecharityaccountsincludetheauditedaccountsoftheRoyalAcademyofDanceintheUKanditsbranchesfortheyearto31July2017,andtheconsolidatedgroupaccountsincludetheauditedaccountsofthecharityanditssubsidiaries.Allactivitiesderivefromcontinuingoperations.

1(d) Stocks and work-in-progressStocksarestatedatthelowerofcostandestimatedsellingpricelesscoststosell,whichisequivalenttothenetrealisablevalue.Provisionismadeforobsolete,slow-movingordefectiveitemswhereappropriate.Costsrelatingtotheexaminationsyllabiandteachingaidsaretreatedaswork-in-progressuntiltheproductisreadyforsale.

1(e) Tangible fixed assetsAlltangiblefixedassets,otherthanfreeholdland,arestatedatcostorvaluationnetofdepreciationandanyprovisionforimpairment.Depreciationisprovidedoncostusingthestraight-linemethodovertheestimatedusefullivesoftheassets.Impairmentreviewsareconductedwheneventsandchangesincircumstancesindicatethatimpairmentmayhaveoccurred.Ifanyassetisfoundtohaveacarryingvaluemateriallyhigherthanitsrecoverableamount,itiswrittendownaccordingly.Freeholdlandisnotdepreciated.Tangiblefixedassetsunder£500arenotcapitalised.Theannualratesofdepreciationareasfollows:

Freeholdbuildings 2% Furnitureandofficeequipment 10%Computerequipment 33% Motorvehicles 25%

1(f) Intangible fixed assetsIntangiblefixedassetsconsistofcomputersoftwareandtelephonesubscriptionrightsofsubsidiarycompanieswhichareincludedatcostandamortisedinequalinstalmentsoveraperiodofyearsestimatedtobetheirusefuleconomiclife.Provisionismadeforanyimpairment.

1(g) LeasesAssetsheldunderhirepurchasecontracts,whichconferrightsandobligationssimilartothoseattachedtoownedassets,arecapitalisedasfixedassetsandaredepreciatedovertheirusefullives.Thecapitalelementsoffutureleaseobligationsarerecordedasliabilities,whiletheinterestelementsarechargedtotheSOFAovertheperiodoftheleasestoproduceaconstantrateofchargeonthebalanceofcapitalrepaymentsoutstanding.Thegroupcurrentlyhasnoassetsheldunderfinanceleases.

1(h) InvestmentsListedinvestmentsareincludedinthebalancesheetatmarketvalue.Investmentsinsubsidiariesandjointventuresareincludedinthecharity’saccountsatcostlessprovisionforimpairment.

1(i) Revaluation of assetsInvestmentsandlandandbuildingsheldbythegroupforrestrictedandunrestrictedusearerevaluedannuallywherematerial.Thegainorlossisreflectedinthestatementoffinancialactivitiesand,forlandandbuildings,includestheamountofdepreciationprovidedinthatyear.


ACCOUNTING POLICIESYear ended 31 July 2017

Notes

1(j) Overseas currenciesIncome,expenditure,assetsandliabilitiesofoverseasbranchesandsubsidiariesaretranslatedintosterlingattheexchangeratesrulingatthebalancesheetdate.Theexchangegainsorlossesarisingfromtheretranslatingofopeningnetassetsoftheoverseasbranchesandsubsidiariesareshownunder‘Otherrecognisedgainsorlosses’inthestatementoffinancialactivities.Allotherexchangegainsorlossesaredealtwiththroughexpenditurewithinthestatementoffinancialactivities.

1(k) Recognition of incomeIncomeisrecognisedinthestatementoffinancialactivitiesonareceivablebasis.ThisiswhentheRADhasentitlement,receiptisprobableandtheamountcanbereliablymeasured.Ifthereareconditionsthathavetobefulfilledbeforeentitlementtoincomereceivedtheincomeisdeferredandincludedundercreditors.

AssetsgivenforusebytheRADarerecognisedasincomeattheirestimatedmarketvaluewhenreceivable.Iftheyformpartofthefixedassetsattheyear-endtheyareincludedinthebalancesheetatthevalueatwhichthegiftwasincludedinincome.

Incomereceivedinadvanceforexamsorshortcourseswheretheactivitydoesnotcompleteuntilaftertheyearendisapportionedtotherelevantfinancialyear;orfeesforprogrammessuchastheFacultyofEducation’sCertificateinBalletStudieswhichisatwo-yearprogrammethatfallsacrossthreefinancialperiods.

1(l) Recognition of expenditureUnrestrictedexpenditureisaccountedforonanaccrualsbasis.Expenditureisallocateddirectlytotheactivitytowhichitrelates,includingsupportcoststhatcanbeidentifiedasbeinganintegralpartofdirectcharitableexpenditure.

(a) Costsofraisingfunds:costsofraisingfundsincludeexpenditurerelatedtosupportdepartmentsandstaffmembersengagedinorcontributingtothoseactivities.

(b) Costsofcharitableactivities:charitableexpenditureincludesallexpenditurerelatedtotheobjectsofthecharityandincludesexpenditurerelatedtosupportdepartmentsandstaffmembersengagedinorcontributingtocharitableactivities.

(c) Governancecosts:thesearecostsassociatedwiththeconstitutionalandstatutoryrequirementsoftheGroup,andincludeexpenditurerelatedtothetrusteesandseniorstaffmembersengagedinorcontributingtothegovernanceoftheGroup.TheseareallocatedwithinsupportcostsaspertherequirementsoftheCharitiesSORP2015.

(d) Indirectsupportcostshavebeenallocatedonthefollowingbases:

• Salaries and pensions: staff numbers per department

• General administration: staff numbers per department

• Information technology: staff numbers per department

• Rentandproperty:departmentaluseforofficespaceandincomegeneratedforstudiospace

• Depreciation: estimated use

• Governance: staff numbers per department

1(m) Pension costsRetirementbenefitstoemployeesareprovidedbydefinedcontributionpensionschemesandforteachersbytheTeachers’PensionScheme,adefinedbenefitscheme.TheTeachers’PensionSchemeisamulti-employerschemewheretheRADcannotidentifytheirindividualshareofassets,andisthereforeaccountedasadefinedcontributionscheme.Contributionspayabletothepensionschemesinrespectofeachaccountingperiodarechargedtothestatementoffinancialactivities.

1(n) Fund accountingFundscanbeclassifiedasdesignated,generalorrestricted.GeneralfundsareallunrestrictedfundswhicharenotdesignatedandcanbeappliedatthediscretionofthetrusteesinaccordancewiththeRAD’scharitableobjects.Theyarisefromanumberofsources,whichinclude:

(a) Donations,legacies,scholarships,bursariesandtrustslefttotheRADanditsbranchesandsubsidiariestoadministerinaccordancewiththeconditionslaiddowntherein.

(b) Grants,sponsorshipandprojectmoneyawardedtotheRADanditsbranchesandsubsidiarieswhereconditionsarerelatedtotheirexpenditure.

(c) FundraisingeventsandappealsformoniesforspecificpurposessetupbytheRADanditsbranchesandsubsidiaries.

(d) Fundsfromunrestrictedactivitiessetasidebytrusteestofundparticularactivities.TheseareclassifiedasDesignatedFunds.

(e) Incomeandexpenditureistreatedaspernotes(k)and(l).Allexpenditureinpursuanceoftheconditionsisshownasrestrictedfundexpenditure.

(f) Scholarshipsandbursariesarepaidatthetimewhentheactivityforwhichtheawardismaderequirespayment.

(g) Transfersoffundsfromunrestrictedtorestrictedfundswilloccurwheretrusteeshaveagreedtofundanexcessofexpenditureoverincome.


NOTES TO THE ACCOUNTSYear ended 31 July 2017

Notes

1(o) Regional advisory committeesThecharitycarriesoutsomeactivitiesthroughanetworkofregionaladvisorycommitteesthatincludethenameofthecharityintheirtitle,andarelocatedinonlysomeofthecountriesinwhichthecharityoperates.Allregionaladvisorypanelandcommitteetransactionsareaccountedforgrossintheaccountsofthecharity,andallassetsandliabilitiesareincludedinthecharity’sbalancesheet.

1(p) Treatment of VATTheRADisregisteredaspartiallyexemptforVATintheUK,andisexemptorliableforVATorapplicabletaxesinotherpartsoftheworld.IrrecoverableVATischargedtotheactivitytowhichitrelatesorotherwiseformspartofthesupportcostsandapportionedaspernote(l).

1(q) Financial instrumentsTrade and other debtors are recognised at the settlement amount due after any discount offered and net of the bad debt provision.Prepaymentsarevaluedattheamountprepaid,netofanytradediscountsdue.Creditorsandprovisionsarerecognisedwherethegrouphasapresentobligationresultingfromapasteventthatwillprobablyresultinthetransferoffundstoathirdparty,andtheamountduetosettletheobligationcanbemeasuredorestimatedreliably.Creditorsandprovisionsarenormallyrecognisedattheirsettlementamountafterallowingforanytradediscountsdue.

1(r) Critical accounting judgements and key sources of estimation uncertainty

Intheapplicationofthegroup’saccountingpoliciesdescribedabove,thetrusteesarerequiredtomakejudgements,estimatesandassumptionsaboutthecarryingamountsofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Theseestimates,judgementsandassumptionsaremadebasedonacombinationofpastexperience,professionalexpertadviceandotherevidencethatisrelevanttotheparticularcircumstance.Actualresultsmaydifferfromestimates.

Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisediftherevisionaffectsonlythatperiod,orintheperiodoftherevisionandfutureperiodsiftherevisionaffectsbothcurrentandfutureperiods.

Thevaluationoffreeholdpropertiesisconsideredtoinvolvethecriticaljudgementsandsourcesofestimationuncertaintywhenapplyingthegroup’saccountingpolicies.

Thetrusteesdonotconsiderthereareanycriticaljudgementsorsourcesofestimationuncertaintyrequiringdisclosurebeyondtheaccountingpolicieslistedabove.



Notes


funds£000


Totalfunds£000



Totalfunds£000

2 Income endowments from:Donations,giftsandlegacies 41 - 41 80 - 80Grants - 11 11 - 58 58

41 11 52 80 58 138

3 TradingTradingconsistsofsalesmadebyRoyalAcademyofDanceEnterprisesLimitedandbranchoutletsoftheRAD.ThecompanyactsasthepublishinganddistributionarmfortheRoyalAcademyofDanceExaminationsBoard;publishingandsellingitssyllabiandrelatedteachingresources,inadditiontootherdancerelatedproducts.Itsproductsaresoldanddistributedthroughitswebsite,catalogues;ashopoutletlocatedwithinRADinBattersea,branchoutletsandselectedstockists.

2017 2016£000 £000

Turnovernetoftaxesanddiscounts 891 787Cost of sales and other costs (571) (586)Net income from trading 320 201

Additionalincomeisgeneratedfromlicensingfeeswhicharedisclosedinnote4,asaresultofwhichRoyalAcademyofDanceEnterprisesLimitedwasabletomakeaGiftAidpaymentof£442,000(2016:£353,000)toitsparentcompany.


Funds£000


Totalfunds£000



Totalfunds£000

4 Other trading activitiesFundraising activities 14 106 120 18 43 61Licensing and royalty income 279 - 279 248 - 248Property and studio hire 75 - 75 55 - 55

368 106 474 321 43 364

5 Investment incomeInterest received 44 - 44 39 1 40 44 - 44 39 1 40

6 Education and training feesInitial Education 3,409 - 3,409 3,278 - 3,278Continuing Education 3,047 687 3,734 2,830 648 3,478

6,456 687 7,143 6,108 648 6,756

7 Other incomeAdvertising income 37 - 37 42 - 42All other income 77 - 77 24 - 24

114 - 114 66 - 66



Notes


funds£000


Totalfunds£000



Totalfunds£000

Expenditure

8 Costs of raising fundsFundraising activities 241 - 241 117 - 117Property and studio hire 11 - 11 11 - 11Trading 1,076 - 1,076 1,007 - 1,007

1,328 - 1,328 1,135 - 1,135

9 Costs of charitable activitiesExaminations 9,877 - 9,877 8,688 - 8,688Initial Education 4,553 - 4,553 4,391 - 4,391Continuing Education 4,193 754 4,947 3,394 829 4,223Subscription 1,016 - 1,016 930 - 930

19,639 754 20,393 17,403 829 18,232

10 Auditor fees payable

Fees payable to the charity’s auditor and its associates for the audit of the Charity’s annual accountsAudit fees 120 - 120 110 - 110Other services 4 - 4 12 - 12Fees payable to the charity’s auditor and its associates for the audit of the charity’s subsidiariesAudit fees 55 - 55 60 - 60Other services 6 - 6 - -Fees payable to other auditors for the audit of the charity’s branches and subsidiariesFees 49 - 49 46 - 46

11 Other expenditureExchangegains/(losses) 86 - 86 (75) - (75)Taxation (194) - (194) (230) - (230)

(108) - (108) (305) - (305)



Notes

12 Analysis of indirect support costs1

Unrestricted funds 2017

Exams Education Training Subscription Trading Total Charitable Activities

£000 £000 £000 £000 £000 £000

Salaries and pensions 1,415 769 582 231 214 3,211General administration 657 445 291 122 124 1,639Information technology 123 116 72 35 35 381Financing charges 50 36 29 12 12 139Depreciation 105 102 53 31 29 320Rent and property 234 189 122 48 48 641Governance 229 61 95 26 43 454

2,813 1,718 1,244 505 505 6,785

Unrestricted funds 2016Exams Education Training Subscription Trading Total

Charitable Activities

£000 £000 £000 £000 £000 £000

Salaries and pensions 1,316 816 386 218 218 2,954General administration 612 372 187 118 65 1,354Information technology 113 95 46 30 28 312Financing charges 61 41 22 12 10 146Depreciation 99 54 35 19 13 220Rent and property 345 213 109 34 38 739Governance 324 140 82 37 50 633

2,870 1,731 867 468 422 6,358

1 ThebasisofallocationofsupportcostsaredisclosedinNote1(l).



Notes

13 Related party transactionsSixtrustees(2016:four)whoarealsoexaminers,tutorsormentorsreceived£41,478(2016:£36,123)inrelatedfeesandalsoexpensesincludingtravelcostsforattendingtrusteemeetings,andafurther£5,398waspaidtoninetrusteesfortravelandotherexpensestoattendBoardmeetings(2016:six).Paymentstotrusteeswhoarealsoexaminers,tutorsandmentorsareinaccordancewithArticles6.5,and10oftheCharter.Trusteesreceivednoremunerationforvolunteeringtheirtime.

Thefollowingrelatedpartytransactionstookplaceduringtheyear:

Relatedparty:JanetTaylor(NationalDirector–NewZealand)astrusteeof14+DanceScholarshipFoundationTransaction:Hireofdancestudios,pianistandjudge’sfeestoRoyalAcademyofDanceNewZealandtohost14+Dancescholarshipevent.Costoftransaction:£3,294(NZL$5,846)(2016:£Nil(NZ$Nil))

Relatedparty:NorikoKobayashi(NationalDirector–Japan)asownerofKobayashiBalletStudiosTransaction:Hireofdancestudios,officespaceandsecondedstafftoRoyalAcademyofDanceJapanforexaminations,courses,summerschoolsandadministration.Costoftransaction:£120,058(¥16,701,416)(2016:£94,085(¥15,885,485))Related party: Andre Cois and Ayrton Cois Transaction:PhotographyandartworkforRoyalAcademyofDanceAustraliaCostoftransactions:£2,103(AUS$3,365)(2016:£NilAUS$Nil))

Relatedparty:LalaSalendu(NationalDirector–Indonesia)asownerofdancestudiosTransaction:HireofstudiostoYayasanRoyalAcademyofDanceIndonesiaforexaminationsandcourses.Costoftransaction:£14,262(Rupiah240,000,0000)(2016:£15,566(Rupiah309,996,600))Amountdueat31July2017:£Nil(RupiahNil)(2016:£4,025(Rupiah69,996,600))

Relatedparty:HolgerWinter(spouseofNationalDirector–Germany)Transaction: Administration services for Royal Academy of Dance gGmbHCostoftransaction:£621(€720)(2016:£546(€720))Amountdueat31July2017:£Nil(€Nil)(2016:£Nil(€Nil))

Relatedparty:RossAlexander(sonofNationalDirector–USA)asownerofViaboldTransaction:Websitemanagementservices.Costoftransaction:£947(US$1,200)(2016:£820(US$1,200))Amountdueat31July2017:£Nil(US$Nil)(2016:£Nil(US$Nil))Transaction:FerrellAlexander(daughterofNationalDirector)asSocialMediaCoordinator.Costoftransaction:£595(US$754(2016:£Nil(US$Nil))

Relatedparty:DanceEtcandPilarMonteiro(NieceofNationalDirector–Portugal)Transaction:StudiohireforExamsandCPDactivitiesandofficehire.PilarhasbeenanemployeesinceMarch2016.Costoftransaction:£12,229(€14,168)(2016:£7,667(€10,108))Amountdueat31July2017:£Nil(€Nil)(2016:£Nil(€Nil))

Relatedparty:BlancaCortes(DaughterofNationalDirector–Spain).Transaction:AnnualofficerentforRAD.Costoftransaction:£5,490(€6,360)(2016:£4,825(€6,360))Amountdueat31July2017:£Nil(€Nil)(2016:£Nil(€Nil))

Relatedparty:MrLume(husbandofOliviaLume)asownerofLumecoGraphicsandMediaTransaction:LayoutanddesignforRADpublications.FilmingofCBTSISPassessmentsandSOLOsealexaminationsCostoftransaction:£5,735(R98,149)(2016:£7,693(R131,657))Amountdueat31July2017:£Nil(RNil)(2016:£Nil(RNil))

Relatedparty:HaamsaaveniMurugiah(daughterofNagaswariMurugiah)asadministratorassistant.Transaction:EmployedasanadministratorfortheRoyalAcademyofDanceMalaysia.Costoftransaction:MYR18,000(£3,197)(2016:£Nil(MYRNil))

Alltransactionswereatarm’slength.TheRADhastakenadvantageoftheoptionconferredbySection33ofFRS102RelatedPartyDisclosuresthatallowsitnottodisclosetransactionswithsubsidiaries.

14 Indemnity insuranceIndemnityinsurancewasincludedaspartoftheRAD’sglobalpolicytoindemnifytheRADfromlossarisingfromtheneglectordefaultofitstrustees,employeesoragentsandtoindemnifythetrusteesandotherofficersagainsttheconsequenceofanyneglectordefaultontheirpart,inaccordancewithArticle6(h)oftheCharter.Thecostfortheyearto31July2017was£5,800(2016:£5,800).



Notes

15 Costs of employeesTheRADemployed195(2016:191)administrativestaffand45(2016:47)commission-basedstaffworldwide,aswellascontractingtheservicesofexaminers,teachers,tutorsandmusicians.Employmentcostsaccountfor55%(2016:63%)oftotalexpenditure(excludingotherexpenditure):


funds£000


Totalfunds£000



Totalfunds£000

Employee gross salaries 10,022 - 10,022 8,862 - 8,862Employeepayrolltaxes 571 - 571 544 - 544Employer pension contribution 311 - 311 288 - 288Employees on commission 704 - 704 613 - 613Total employment costs 11,608 - 11,608 10,307 - 10,307

TheRADhasanumberofRegionalAdvisoryCommittees(RACs)inAustralia,Greece,SouthAfricaandtheUK.TheseRACs operate through committees consisting of up to ten volunteer members and hold student events and activities throughouttheyear.Manyoftheseactivitiesaremannedbyvolunteerswhoareentitledtoreimbursementoftheirexpenses.

Thetotalemployeebenefitsofthekeymanagementpersonnelofthecharity(aslistedonpage05),excludingemployer’spensioncontributions,were£517,000(2016:£501,000).

2017 2016Number of Group employees earning:Between£110,000–£120,000 1 -between£100,001–£110,000 - 1between£90,001–£100,000 1 1between£80,001–£90,000 - -between£70,001–£80,000 4 3between£60,001–£70,000 4 6

16 Pension costsThepensionchargefortheyearto31July2017was£311,000(2016:£288,000).

IntheUKtheRADcurrentlyoperatestwoschemes,representingintotal153employees(2016:142),followingtheintroductionofauto-enrolment

Provider Type of schemeAegon Scottish Equitable Definedcontributionscheme

Teachers’PensionScheme(TPS)Acontracted-out,unfunded,definedbenefitpay-as-you-gooccupationalpension scheme

ElsewheretheRADoperatesorcontributestoavarietyofdefinedcontributionschemes,moneypurchaseschemesorstatutoryschemes,representing66(2016:51)employeesinnine(2016:nine)countries.

17 TaxationTheRADisacharitableorganisationandisentitledtoUKtaxexemptionsavailabletocharities.TheRoyalAcademyofDanceEnterprisesLimitedgiftaidsits“annualprofits”,asdefinedbyaDeedofCovenant,enteredintowiththeRAD.ProvisionforUKtaxationhasonlybeenmadeinrespectofanyresidualprofitoftheRoyalAcademyofDanceEnterprisesLimited.Subjecttotheavailabilityofsimilarcharitableexemptionsoverseas,provisionhasbeenmadeforoverseastaxationontheprofitsofoverseassubsidiariesandbranches.

18 Intangible assetsIntangibleassetsconsistofcomputersoftwareandtelephonesubscriptionrightsofsubsidiarycompaniesthatarerecordedatcostandwrittenoffoveranumberofyears.Therehavebeencomputersoftwareadditionsduringtheyearof£9,000(2016:£14,000),offsetbyamortisationof£11,000(2016:£6,000).TheCharityhadamortisationof£1,000fortheyear(2016:£1,000).



Notes

19 Tangible fixed assets held for charitable use

Freeholdland andbuildings

Furnitureand office

equipment

Computerequipment

Motorvehicles

Total

Group £000 £000 £000 £000 £000Cost or ValuationAt 1 August 2016 12,120 648 1,358 51 14,177Exchangemovements 136 (9) 26 3 156Revaluation 226 - - - 226Additions - 7 772 - 779Disposals - (8) (20) - (28)At 31 July 2017 12,482 638 2,136 54 15,310

Accumulated depreciationAt 1 August 2016 71 458 1,270 43 1,842Exchangemovements - 13 25 2 40Revaluation (296) - - - (296)Charge for the year 225 44 49 2 320Eliminated on disposals - (8) - - (8)At 31 July 2017 - 507 1,344 47 1,898

Net book valueAt 31 July 2017 12,482 131 792 7 13,412At 31 July 2016 12,049 190 88 8 12,335

Charity £000 £000 £000 £000 £000Cost or ValuationAt 1 August 2016 11,995 568 1,258 51 13,872Exchangemovements 127 1 13 2 143Revaluation 226 - - - 226Additions - 6 757 - 763Disposals - (9) - - (9)At 31 July 2017 12,348 566 2,028 53 14,995

Accumulated depreciationAt 1 August 2016 69 412 1,188 43 1,712Exchangemovements - 8 18 2 28Revaluation (296) - - - (296)Charge for the year 227 33 43 2 305Eliminated on disposals - - - - -At 31 July 2017 - 453 1,249 47 1,749

Net book valueAt 31 July 2017 12,348 113 779 6 13,246At 31 July 2016 11,926 156 70 8 12,160



Notes

19 Tangible fixed assets held for charitable use (continued)TheRADownsfreeholdpropertiesintheUK,AustraliaandSouthAfrica.Thecurrentvaluations,afteramortisationchargesandexchangegainsarisingoutofthetranslationofGroupFreeholdpropertiesattheendofthefinancialyearare:

Value at 1 August 2016

Charge for the year

Additions to freehold

Increase(decrease)

in valuation

Value at 31 July 2017

Nethistorical cost

UK £’000 9,742 (195) - 233 9,780 1,910Australia A$000 3,800 (50) - 430 4,180 470South Africa Rand’000 2,280 - - - 2,280 654

Value at 1 August 2016

Exchangemovement

Charge for the Year

Additions tofreehold

Increase invaluation

Value at 31 July 2017

£’000 £’000 £’000 £’000 £’000 £’000UK 9,742 - (195) - 233 9,780Australia 2,184 127 (30) - 289 2,570South Africa 123 9 - - - 132Total 12,049 136 (225) - 522 12,482

ThefreeholdpropertyintheUKwasvaluedon31July2017inaccordancewiththerequirementsoftheRICSValuation–ProfessionalStandards(7thedition)andFRS102,andwasvaluedtoexistingusevalueassumingthepropertywouldbesoldaspartofthecontinuingbusiness.Thevaluer’sopinionofvaluewasprimarilyderivedusingcomparablerecentmarkettransactions.

ThefreeholdpropertyinAustraliawasvaluedon31July2017atfairvalue;assumingthelandcomponentwouldbeofinteresttoadeveloperratherthanaspartofthecontinuingbusiness.

Thesevaluationswerecarriedoutby:PropertyinLondon,UK DanielWatneyLLP,CharteredSurveyorsPropertyinSydney,Australia CvikerPropertyValuations&Consultancy

ThevaluationofthefreeholdpropertyinSouthAfricawastakenfromtheJohannesburgMunicipalityrating,whichisrevisedperiodically.

Thecharitydoesnotholdanyheritageassetswhicharedefinedastangibleassetswithhistorical,artistic,scientific,technological,geophysicalorenvironmentalqualitiesthatareheldandmaintainedprincipallyfortheircontributiontoknowledgeandculture.



Notes

Group Charity2017 2016 2017 2016£000 £000 £000 £000

20 InvestmentsQuoted investmentsMarketvalueat1August 47 41 42 37Net realised / unrealised gains 3 6 8 5Market value at 31 July 50 47 50 42Historical cost at 31 July 23 23 13 13

Investment in joint ventureDance Proms2 28 5 28 5Investment during the year - 35 - 35less impairment during year (17) (12) (17) (12)As at 31 July 11 28 11 28

Investments in subsidiariesBalance at 1 August - - 119 119Additions - - - -As at 31 July - - 119 119

Total investments at 31 July 61 75 180 189

Quoted investmentsHeldintheUK 53 43 53 43HeldoutsidetheUK - 5 - -

Allquotedinvestmentsareheldwithinrestrictedfunds,arelistedonarecognisedstockexchange,andarevaluedatmarketvalueattheyear-end.

Thecharityowns100%oftheissuedcapitalofthesubsidiarycompaniesonpage32,whoseaimsandobjectivesmirrorthoseoftheRAD,withtheexceptionofRoyalAcademyofDanceS/CLtda.,acompanyregisteredinBrazil,andRoyalAcademyofDancedeMexicoAC,acompanyregisteredinMexicowhoseissuedsharecapitalsareheld100%intrustonbehalfoftheRoyalAcademyofDance;andRADDancing(Thailand)CoLtdwheretheRADholds49%oftheissuedsharecapital,buthaseffectivecontrol.

ThecharityalsohaseffectivecontroloverabuildingfundinSouthAfricawhichisadministeredbytheRoyalAcademyofDance,anassociationincorporatedunders21oftheRepublicofSouthAfrica’sCompaniesAct,andYayasanRoyalAcademyofDanceIndonesia,anon-profitfoundation,basedinIndonesia.TheresultsoftheseentitiesareincludedintheGroup’sresultsaslongastheRADcontinuestomaintainabranchinSouthAfrica,andoperationsinIndonesia.RADDancing(Malaysia)Sdn.Bhd.isawhollyownedsubsidiaryofRoyalAcademyofDanceSingaporePteLtd.

2 CelebrationofDanceFestivalLtd.;ajointventurebetweentheISTD,IDTAandRAD



Notes

20 Investments (continued)Investments in subsidiaries

Subsidiaries Country of incorporation

Co Registration number % of issued share capital

Share capital value£000

Royal Academy of Dance S/C Ltda Brazil CNP-J27907864/0001-48 Held in trust -Royal Academy of Dance gGmbH Germany HRB 103317 100% 63Yayasan RAD Indonesia Indonesia NPWP:01.683.529.0-017.000 100%control 6Royal Academy of Dance Srl Italy TN-0174567 99% 8Royal Academy of Dance Asbl Luxembourg RCS F1236 100% 3RADDancing(Malaysia)SdnBhd Malaysia RFCRAD011026DT5 100% -RoyalAcademyofDancedeMexicoAC Mexico No282399-X Held in trust -Royal Academy of Dance Singapore Pte Ltd Singapore No02211/1988-M 100% -Royal Academy of Dance South Africa 1990/004233/08 100%control -Royal Academy of Dance SL Spain CIFNoB-59915330 100% 2RADDancing(Thailand)CoLtd Thailand 05055540038970 49% 37Royal Academy of Dance Enterprises Ltd Great Britain No2773495 100% -Balance at 31 July 119

Group Charity2017 2016 2017 2016£000 £000 £000 £000

21 StocksFinished goods and goods for resale 374 388 185 178Workinprogress 67 - - -Balance at 31 July 441 388 185 178

22 DebtorsTrade debtors 1,171 763 1,068 672Amounts due from subsidiaries - - 1,154 662Other debtors 307 360 209 190Prepayments and accrued income 948 1,206 844 1,160Balance at 31 July 2,426 2,329 3,275 2,684

23 Creditors: amounts falling due within one yearBankoverdrafts (660) (450) (660) (450)Bankloans (15) (264) (15) (264)Trade creditors (1,636) (1,761) (1,490) (1,315)Taxationandsocialsecurity (206) (332) (49) (161)Accruals and deferred income (3,108) (3,654) (2,763) (3,041)Balance at 31 July (5,625) (6,461) (4,977) (5,231)

Bank overdraftsRoyalAcademyofDanceEnterprisesLtdhasa£300,000overdraftfacilitywithHSBCBankPlc.Thiswasunutilisedatyearend.



Notes

23 Creditors: amounts falling due within one yearBank overdrafts(continued)£660,450 (2016:£450,149)isoffsetforgroupingpurposesagainstotherbalancesheldbytheRADintheUKwithHSBCBankPlcandattractsinterestat1%(2016:1%)onsomuchasiscoveredbyclearedcreditbalances,and1.9%overbaserate(2016:1.9%)ontheremainderofitwithinthelimit.Itissubjecttonormaltermsandconditionsincludingrepaymentondemand.

Asat31July2017theRADintheUKhadnotutilisedanyofthe£700,000availableinthegroupedoverdraftfacility(2016:£nil).

HSBCBankPlcwillreviewtheRAD’sfacilitiesinSeptember2018.Thefacilitiesaresecuredonthefreeholdpropertyat36BatterseaSquare,LondonSW113RA.

AnoverdraftfacilityofA$400,000withWestpac,securedonthepropertyat20FarrellAvenueSydney,wasmadeavailableinMarch2012tofacilitatethecompletionofthebuildingworksonthepropertyandtosupplementthecyclicalnatureoftheAustralian’soperationscashflow.Thefacilityisavailablefor10yearsexpiringinFebruary2022.

ABaserateloanfacilityof£250,000,securedonthepropertyat36BatterseaSquare,London,wasmadeavailablebyHSBCPlcinJuly2014toassistinthepaymentofprofessionalfeesrelatedtothechangeofplanninguseonthatproperty.ThefacilitycrystallisedondrawdowninNovember2014,wasinitiallyrepayableinNovember2016,andwasrenegotiatedtoberepayableinJune2017.Itattractsinterestat3.4%overtheBankofEnglandBaseRate.TheloanwasrepaidinJune2017.

Group Charity2017 2016 2017 2016£000 £000 £000 £000

24 Creditors: amounts falling due after more than one yearProvisionforlong-serviceaward (22) (18) (22) (18)Bankloans (170) (186) (170) (186)Balance at 31 July (192) (204) (192) (204)

Bank loansABankloanof£184,650(2016:£185,886)relatestobankbillbusinessloanofA$400,000utilisedinMarch2012tocompletebuildingworkson20FarrellAvenue,Sydney.Theloanisinterestandfeesforthefirst3years;thenprincipal,interestandfeesfortheremainingperiodof10years,expiring2027.Thecurrentinterestrateis5.535%.Thechangeintotalliabilityisduetoexchangemovementsaswellaspaymentsagainsttheloan.Theloanissecuredonthatproperty.



Notes

25 Movement in other funds

Type of Fund

Balance at

1 August 2016

Exchange Movem

ent

Revalued balance at

1 August 2016

Income

Expenditure

Net m

ovement

Gains on investm

ents realised and unrealised

Transfers from

unrestricted funds

Balance at

31 July 2017

£000 £000 £000 £000 £000 £000 £000 £000 £000

Designated

GenéeLegacyfunds Singapore Designated 6 - 6 - - - - - 6

GenéeLegacyfunds UK Designated 1 - 1 - - - - - 1

Challengenéefunds UK Designated 101 - 101 18 (15) 3 - - 104

Social Responsibility fund Group Designated 121 1 122 14 (1) 13 - - 135

Evans Legacy USA Designated 50 4 54 - - - - - 54

279 5 284 32 (16) 16 - - 300

Restricted

Step into Dance programme UK Project (29) - (29) 687 (661) 26 - - (3)

CLIF programme UK Project 7 - 7 6 (15) (9) - - (2)

BeneshProjects UK Project 5 - 5 5 (1) 4 - - 9

Scholarship/bursary funds UK Restricted 580 - 580 4 (11) (7) - - 573

Boys Only! funds UK Restricted 64 - 64 12 (12) - - - 64

Iris Truscott fund UK Restricted 30 - 30 16 (1) 15 1 - 46

Regional Scholarship funds UK Restricted 57 - 57 9 (7) 2 - - 59

JubileeAwards2012 UK Restricted 18 - 18 - - - - - 18

RADiate UK Restricted 16 - 16 65 (46) 19 - - 35

Christel Addison funds Sth Africa Restricted 70 4 74 - - - - - 74

Scholarship fund Israel Restricted 1 - 1 - - - - - 1

Total Charity 819 4 823 804 (754) 50 1 - 874

Building fund Sth Africa Restricted 6 - 6 - - - - - 6

Total Group 825 4 829 804 (754) 50 1 - 880



Notes

Movement in other funds (prior year)

Type of Fund

Balance at

1 August 2015

Exchange Movem

ent

Revalued balance at

1 August 2015

Income

Expenditure

Net m

ovement

Gains on investm

ents realised and unrealised

Balance at

31 July 2016

£000 £000 £000 £000 £000 £000 £000 £000

Designated

GenéeLegacyfunds Singapore Designated 24 24 - (18) (18) - 6

GenéeLegacyfunds UK Designated 17 - 17 - (16) (16) - 1

Challengenéefunds UK Designated 98 - 98 3 - 3 - 101

Social Responsibility fund Group Designated 104 4 108 15 (2) 13 - 121

Evans Legacy USA Designated 45 8 53 - (3) (3) - 50

288 12 300 18 (39) (21) 279

Restricted

Step into Dance programme UK Project 29 - 29 648 (706) (58) - (29)

CLIF programme UK Project 17 - 17 14 (24) (10) - 7

BeneshProjects UK Project 12 - 12 (4) (3) (7) - 5

Scholarship/bursary funds UK Restricted 597 - 597 5 (26) (21) 4 580

Boys Only! funds UK Restricted 64 - 64 4 (4) - - 64

Iris Truscott fund UK Restricted 29 - 29 1 (1) - 1 30

Regional Scholarship funds UK Restricted 55 - 55 22 (20) 2 - 57

JubileeAwards2012 UK Restricted 18 - 18 - - - - 18

RADiate UK Restricted - - - 60 (44) 16 - 16

Christel Addison funds Sth Africa Restricted 65 5 70 - - - - 70

Scholarship fund Israel Restricted 1 - 1 - - - - 1

Total Charity 887 5 892 750 (828) (78) 5 819

Building fund Sth Africa Restricted 7 - 7 - (1) (1) - 6

Total Group 894 5 899 750 (829) (79) 5 825



Notes

Designated funds

Designated funds form part of unrestricted reserves:

Genée Legacy funds(SingaporeandUK):FundsraisedfromtheGenéeInternationalBalletCompetition.

Challengenée funds:FundsraisedtosupporttheGenéeInternationalBalletCompetitionandbursaries.

Social Responsibility fund: Thiswassetupin2011bythetrusteestomeetitsPublicBenefitresponsibilitythroughRoyalAcademyofDanceEnterprisesLtdandbranchretailoutletsinAustralia,Canada,NewZealand,SouthAfricaandtheUSAgift-aidingortransferring,asappropriate,2%oftheirsalesturnoveraftertaxanddiscounts.Atotalof£14,000(2016:£15,000)wasraisedduringtheyearfromsales,with£1,000(2016:£2,000)incosts.Noawardshaveyetbeenmade.

Evans Legacy (USA): US$70,000ofaUS$120,000legacylefttotheRoyalAcademyofDance’sUSofficewasdesignatedin2014forfutureprojects.Notransfersweremadethisyear(2016:£3,000).

Restricted funds

Restrictedfundsarefundsarisingoutofdonations,grants,legaciesandawardsgivenorraisedforspecificpurposes:

Thesefundsareusedforspecificprojects:

Step into Dance: Afullyinclusive,communitydanceprogramme,apartnershipbetweentheRoyalAcademyofDancewholeadtheprogrammeandTheJackPetcheyFoundationwhofundit.

The Community Learning and Innovation Fund (CLIF): FundedresearchintoDanceforLifelongWellbeing.

Other restricted funds:

Benesh Projects: FundsareraisedfromtheBeneshInstituteEndowmentFundtofinancechangesmadeintheBeneshMovementwebsiteandBeneshcoursematerial.

Scholarship / bursary funds: To provide grants to students attending teacher education and notation programmes at the RAD.Awardstotalling£11,000weremadeinthisfinancialyear(2016:£27,000).

Boys Only! funds: FundsraisedatajointRAD/RBSBillyElliotpreviewGalatoprovideopportunitiesformalestudentswhoseaccesstodanceislimitedforeconomic,geographicorphysicalreasons.Therewasspendof£12,000intheyeartosupportProjectB,createdtoinspireboysandmenofallagestodance.

Iris Truscott fund: AtrustdeedregisteredwiththeCharityCommissionerstogiveawardstostudentswishingtoprogressfromeithertheCBTStoaLevel2or3teachingqualificationvalidatedbytheUniversityofBathanddeliveredbytheRAD;orfromBABalletEducationtoLRADprogramme.Twoawardsaremadeannually.

Regional Scholarship funds:FundsareraisedandadministeredbyRegionalAdvisoryCommitteesinEnglandandWalestoprovidescholarshipsforstudentstofurthertheirtraining.

Jubilee Awards 2012: OneoffourawardsmadetotheRoyalAcademyofArts,theRoyalAcademy,theRoyalAcademyofDramaticArtandtheRoyalAcademyofDancetohonourHMTheQueen’spatronageofthefourAcademies’inherGoldenJubileeYear.

RADiate funds: Funds are raised from a grant received by City Bridge Trust and school tuition fees for special needs educationinprimaryschools.

Christel Addison funds (South Africa): A legacy left by a South African teacher to fund teacher training opportunities overseasforSouthAfricanresidents.Noawardsweremade.

Scholarship funds (Israel): Toprovidescholarshipsforstudentstofurthertheirtraining.Noawardsweremade.

Building Fund (South Africa): ThebuildingisownedbyRoyalAcademyofDanceacompanyregisteredinSouthAfricaunders21CompaniesAct.Fundsareraisedbyrentingthebuilding.



Notes

26 Movement in unrestricted funds

Balance At1 August

2016

Exchangemovements

Netincoming

resources

Otherrecognised

(losses)/gains

Balance at31 July 2017

£000 £000 £000 £000 £000

CharityAccumulated funds 3,549 107 508 (17) 4,147Revaluation reserve 9,883 - - 522 10,405

13,432 107 508 505 14,552

GroupAccumulated funds 5,381 135 422 (17) 5,921

Revaluation reserve 9,972 - - 522 10,494

15,353 135 422 505 16,415

Movement in unrestricted funds (prior year)

Balance At1 August

2015

Exchangemovements

Netincoming

resources

Otherrecognised

losses

Balance at31 July 2016

£000 £000 £000 £000 £000CharityAccumulated funds 2,892 623 46 (12) 3,549Revaluation reserve 10,174 - - (291) 9,883

13,066 623 46 (303) 13,432

GroupAccumulated funds 4,253 821 319 (12) 5,381Revaluation reserve 10,262 - - (290) 9,972

14,515 821 319 (302) 15,353

The net movement in funds includes unrealised losses on investment in land and building through revaluation at current prices.



Notes

Unrestrictedfunds

Totalfunds

£000 £00027 Analysis of group net assets between funds

Tangiblefixedassets 13,412 13,412Intangiblefixedassetsandinvestments 38 81Current assets 8,782 9,619Current liabilities (5,625) (5,625)Amounts falling due after more than one year (192) (192)Total net assets 16,415 17,295

Unrestrictedfunds

Totalfunds

£000 £000Analysis of group net assets between funds (prior year)Tangiblefixedassets 12,335 12,335Intangiblefixedassetsandinvestments 50 97Current assets 9,258 10,411Current liabilities (6,086) (6,461)Amounts falling due after more than one year (204) (204)Total net assets 15,353 16,178

28 Parent charity TheparentcharityintheUnitedKingdom(UKGroup)hadnetincomingresourcesbeforeconsolidationadjustments,transfersbetweenfunds,andotherrecognisedgainsandlossesof£680,000(2016:netoutgoingresources£255,000).

Income Expenditure2017

Net income Income2016

Net income£000 £000 £000 £000 £000

Unrestricted funds 11,756 (11,140) 616 10,578 (166)Restricted and designated funds 835 (771) 64 734 (89)For the year to 31 July 12,591 (11,911) 680 11,312 (255)


GROUPTheresultsofthetwelveSubsidiarycompaniesbelowareconsolidatedwiththeresultsoftheCharity(BranchOfficesandUKGroup)toformtheWorldwideGroup:

Subsidiary companiesBenelux&France RoyalAcademyofDanceAsbl.,8,ruedeBeggen,L–1220Luxembourg.

Germany RoyalAcademyofDancegGmbH,Waldenserstrasse2–4,10551Berlin

Indonesia YayasanRADIndonesia,Jl.AngurIII/no:1Cipete,JakartaSelatan12410

Italy RoyalAcademyofDanceSrl.,ViaVannetti12,38122Trento

Malaysia RADDancing(Malaysia)SdnBhd.,No16F1Sentral,JalanStesenSentral,KualaLumpur50470

Mexico&CentralAmerica RoyalAcademyofDancedeMexicoAC,Amates18FraccAlconfores,SanMateo,NaucalpanCP53240,Mexico

Singapore RoyalAcademyofDanceSingaporePteLtd,FarrerRoadPostOffice,POBox106,Singapore912804

SouthAfrica RoyalAcademyofDances21Company,POBox200,Bramley2018,Johannesburg

SouthAmerica RoyalAcademyofDanceBrasilLtda,Av.Angelica,566/86,SantaCecília,01228000SãoPaulo-SP,Brasil

Spain,Andorra&Gibraltar RoyalAcademyofDanceSL.,VenturaiGassol,3,5è-3a,43203Reus,Tarragona,Spain

Thailand RADDancing(Thailand)CoLtd,121/12,Moo10,Chiangmai-HangdongRoad,Tambon:PaeDad,Ampur:Muang,Chiangmai50100

UK RoyalAcademyofDanceEnterprisesLtd,36BatterseaSquare,LondonSW113RA

CHARITYTheresultsoftheeightbranchofficesbelowareconsolidatedwiththeresultsoftheUKGrouptoformtheCharity:

BranchofficesAustralia 20FarrellAvenue,Darlinghurst,NSW2010

Canada Suite601,1210SheppardAvenueEast,Suite601,Toronto,OntarioM2K1E3

Israel HadarStreet491,NeveYamin

Japan TradMejiroB2F,2-39-1Mejiro,Toshima-Ku,Tokyo171-0031

NewZealand Level11,49BoulcottStreet,Wellington6011

Portugal Rua4Infantaria86,138C/VEsq,1350-241Lisboa

SouthernAfrica&Mauritius POBox200,Bramley2018,Johannesburg,SouthAfrica

UnitedStates 1927N4thStreet,Milwaukee53212,Wisconsin

UKgroupTheresultsofthefourteenrepresentativeofficesbelowareincludedintheresultsoftheUKtoformtheUKGroup:

RepresentativeofficesCaribbean POBox1433,8RockhamptonDrive,Kingston8,Jamaica

China 2ndFloorTower2,DongHaiCommercialBuilding,588YanAnDongLui,Shanghai

Cyprus 71IrinisStreet,3041Limassol

Greece BritishCouncil,17KolonakiSquare,Athens10673

HongKong HongKongExaminationandAssessmentAuthority,17TseukLukStreet,SanPoKong,Kowloon

Ireland c/o152SladRoad,Stroud,GloucestershireGL51RH

Malta c/o29/10SirLuigiCamilleriStreet,SliemaSLM1281

Philippines BritishCouncil,10FTaipanBuilding,OrtigasJnRoad,OrtigasCenter,PasigCity1605

Scandinavia Smedstuveien25,7040Trondheim,Norway

SouthAsia 40aLakeGardens,offLakeDrive,Rajagiriya10100,SriLanka

SouthKorea 1703ArtnouveauPalace,258Sukchonhosu-ro,SongpaGu,Seoul05624

Taiwan 5f,No122,Sect7ChungShanN.Road,Taipei11151

Turkey BritishCouncil,BuyukdereCaddesiMayaAkarCentre,No:100–102Kat:5,Esentepe34394,Istanbul

UAE&Qatar BritishCouncil,POBox1636,Dubai


ADVISERSUK Banker HSBCBankPlc 31HolbornCircus,LondonEC1N2HR

UK Solicitor FieldfisherLLP RiverbankHouse,2SwanLane,LondonEC4R3TT

UK and Group Auditor DeloitteLLP 2NewStreetSquare,LondonEC4A3BZ

DeloitteLLPandmembersoftheDeloitteToucheTohmatsuworldwidenetworkauditthegroupbranchesandsubsidiarieswiththeexceptionofthefollowing,whichareeitherauditedorreviewedbythefirmsshownbelow:

Brazil SussumoHirakata OrganizacaoContabilLiberty,RuaMitutoMizumoto56,Liberdade,01513010SaoPaulo-SP

Canada GrantThorntonLLP 15AllstateParkway,Suite200,Markham,OntarioL3R5B4

Indonesia KAPEknaMasni,Bustaman&Rekan SentraKramatB-18,JLKramatRaya7-9,Jakarta10450

Israel HannanGabrielCPA 8Hayod-ChefStreet,HodHasharon45200

Luxembourg AlexanderJDaviesSàrl 24RueJeanL’Aveugle,LuxembourgL-1148

Portugal CERB BelouraOfficePark,RuadoCentroEmpresarial,EdifícioEE06–Escritório12,QuintadaBeloura,2710-444Sintra

Spain AsesoriaBerzosa DonosoCotres85,28015Madrid

Thailand KT&RBusinessConsultantCoLtd 59/1Sukhumvit64Bangchak,Prakanong,Bangkok10260

United States WrenKellyCPALLP POBox12290,Bakersfield,CA93389-2290

HeadofficeRoyal Academy of Dance36 Battersea SquareLondon SW113RAEnglandT+44(0)2073268000F+44(0)2079243129www.rad.org.ukwww.radenterprises.co.uk

Photo:FoteiniChristofilopoulou

Photo: Elliott Franks

TheROYALACADEMYOFDANCE®andRAD®areregisteredtrademarksoftheRoyalAcademyofDance.TheuseormisuseofthetrademarkoranyothercontentofthispublicationwithoutpriorpermissionfromtheRoyalAcademyofDanceisstrictlyprohibited.

RoyalAcademyofDance®isacharityregisteredinEnglandandWalesNo.312826

Royal Academy of Dance36 Battersea SquareLondon SW11 3RAUK Tel: +44 (0)20 7326 8000Fax: +44 (0)20 7924 3129Email: [email protected]

www.rad.org.ukwww.radenterprises.co.ukwww.stepintodance.org

/RoyalAcademyofDance

/RADheadquarters

Royal Academy of Dance

Patron:HerMajestyQueenElizabethII

Documents

Annual Report and Financial Statements - Royal Academy of ...€¦ · Annual Report and Financial Statements 2017 01 INTRODUCTION During the period under review, the Royal Academy