financial report and statements for the year ended … bintley cbe karen berry bsc ba(hons) adv tch...

Financial Report and Statements For the year ended 31 July 2010

A charity registered in England and Wales No 312826

ROYAL ACADEMY OF DANCE

CONTENTS

Page

Results at a glance 3

Aims and Objectives 4

Corporate Governance 4 - 8

Business Review 9-16

Statement of the Board of Trustees’ Responsibilities 17

Independent Auditors’ Report to the Trustees of Royal Academy of Dance 18

Group Consolidated Statement of Financial Activities 19

Group and Charity Balance Sheets 20

Group Cash Flow Statement 21 – 22

Accounting Policies 23 – 24

Notes to the Accounts 25 – 39

Structure 40

Advisers and Management 41 - 42

Financial Statements 2010 2


RESULTS AT A GLANCE Financial Highlights Unrestricted Funds Restricted Funds 2010 2009 2010 2009 Statement of Financial Activities £000 £000 £000 £000 Total incoming resources 1 17,051 15,843 435 364 Net incoming resources before transfers between funds 919 715 30 20 Net incoming resources after transfers between funds 881 715 68 20 Gain (loss) on revaluation of assets and investments 885 (443) 5 - Movement on exchange arising from the consolidation of branches and subsidiaries

298

159

1

-

Net movement in reserves 2,064 431 74 20 Balance Sheet Tangible and intangible fixed assets (excluding freehold property) 388 352 - - Cash and other liquid assets 2 5,620 4,442 691 617 Working capital including provisions 3 (3,178) (3,015) - - Readily realisable reserves 4 2,442 1,427 691 617 Accumulated funds 3,937 2,855 691 617 Revaluation reserves 5,826 4,844 - - Statistics 2010 2009 Members 12,603 12,353 Students enrolled on education programmes 1,099 963 Candidates taking examinations, class awards, presentation and demonstration classes 224,192 231,664

Calendar Annual General Meeting 2010 14 April 2011 Royal Academy of Dance, London 1 2009 has been restated as Step into Dance project income and expenses have been re-classified to Restricted Funds. There was no effect on incoming

reserves in 2009 as project income matched expenditure 2 Cash and other liquid assets is made up of cash held at bank less any bank overdrafts shown in Note 25 3 Working capital including provisions is made up of stocks and debtors shown in Notes 23 and 24 less trade creditors, taxation and social security, and

accruals and deferred income shown in Note 25, and provisions for long service in Note 26 4 Readily realisable reserves are made up of cash and other liquid assets less working capital including provisions as shown above and on page 16 of this

report.

3 Financial Statements 2010


AIMS AND OBJECTIVES Our vision is to lead the world in dance education and training and be recognised internationally for the highest standards of teaching and learning. As the professional membership body for dance teachers we will inspire and empower dance teachers and students, members, and staff to make innovative, artistic and lasting contributions to dance and dance education throughout the world. Our mission is to promote and enhance knowledge, understanding and practice of dance internationally by educating and training teachers and students and by providing examinations to reward achievement, so preserving and extending the rich, artistic and educational value of dance for future generations. Our aims set out in our Charter to elevate and advance the art of dance by promoting the correct tuition of the dance in its highest forms and to advance education in the art of dance, have been expanded into a set of strategies:

• to be the leading international authority on dance teacher education and training; • to be the preferred professional membership body for teachers of dance around the world; • to retain a strong, loyal and engaged international membership; • to maintain recognition as a leader in the provision of ballet examinations nationally and internationally, and review the

possibilities and practicalities of expanding provision; • to provide a wide range of opportunities for training and performance for the wider community internationally; • to ensure consistent messaging and brand image worldwide; maximising every opportunity to promote our services

and events and to raise our profile and its members; and • to ensure our future as a well managed, well-funded and well-governed organisation.

CORPORATE GOVERNANCE The Royal Academy of Dance is a company created by Royal Charter on 31 December 1936 and registered as a charity in England and Wales No 312826 on 16 January 1963. An amended Supplemental Charter and Bye-Laws was approved by the Privy Council on 10 December 2008. The Royal Academy of Dance has a number of branch and subsidiary companies overseas in which it holds, either in trust or outright, 100% of the issued share capital. It also has effective control over a building fund in South Africa which is administered by the Royal Academy of Dance, an association incorporated under s21 of the Republic of South Africa’s Companies Act; and Yayasan Royal Academy of Dance Indonesia, a non-profit foundation, based in Indonesia. The Academy has its headquarters in London and has a network of 32 international offices, representing 12,603 members, resident in 77 countries. Board of Trustees The Academy elects a President, Vice-Presidents, and a Board of Trustees. The governance of the Royal Academy of Dance lies with the Board of Trustees. The Board has a maximum of twenty one members, consisting of the current President, ten Trustees who are Full Members of the Academy and ten Trustees who may or may not be Full Members of the Academy but who have been recommended by the Board as persons likely to bring skills or experience other than dance or education. The office of President, Vice-President and Trustee may be nominated by Full Members of the Royal Academy of Dance or recommended by the Board of Trustees. Trustees are elected by Members at an Annual General Meeting to hold office for a term of three years, and may be re-appointed for two further consecutive terms in accordance with clauses 33-38 of the Bye-Laws. Individuals may be co-opted by the Trustees to fill vacancies arising during the year. New Trustees are provided with a Trustees Handbook and take part in induction sessions with senior staff to familiarise themselves with the work of the Academy. The Board of Trustees and each of the sub-Committees meet at least three times a year. Trustees are expected to attend all meetings of the Board of Trustees.



Advisory Council There is an Advisory Council which consists of the President, Vice-Presidents and any other persons appointed by the Board and whose purpose is to provide advice to the Board as it sees fit. The Advisory Council did not meet during the year. International Advisers The Trustees appoint up to five International Advisers whose ordinary residence is overseas and who attend meetings of the Board of Trustees in an advisory capacity. Four International Advisers were appointed in 2009 for a three year term. There is a vacancy for Europe, and during the year the International Adviser for the Americas resigned as she moved to Australia and a replacement was appointed in December 2010. Patron Board of Trustees Her Majesty Queen Elizabeth II Kerry Rubie (Chair) Nigel Hildreth MMus PGCE (Vice-Chair) President Derek Purnell (Vice-Chair) Dame Antoinette Sibley DBE Dame Antoinette Sibley DBE Vice Presidents David Bintley CBE Karen Berry BSc BA(Hons) Adv Tch Dip RTS Dame Beryl Grey DBE DMus DLitt DEd FRSA Leigh Collins Dr Ivor Guest MA DUNIV FRAD Deborah Coultish Adv Tch Dip RTS David McAllister OAM Rosemarie Franklin RAD RTS Wayne Sleep OBE Frank Freeman FRAD RTS Sir Peter Wright CBE DMus DLitt FBSM Anders Ivarson AI Chor Louise Murray ARAD RTS Elected 25 April 2010 Philip Pegler Dip RBS TTC ARAD AISTD AIDTA Darcey Bussell OBE Lynne Reucroft-Croome MA BA(Hons) LRAD Helen Taylor RAD RTS Advisory Council Cheryl Thrush ARAD RTS Joy W Brown Kathryn Wade ARAD Mary Clarke Denise Winmill ARAD RTS Barbara Fewster OBE FISTD Nigel Wreford-Brown Alexander Grant CBE Dr Stanley Ho OBE GrOIH Chev Leg d’Hon DSoc Sc CStJ Re-elected 25 April 2010 PF Nind MA OBE Karen Berry BSc BA(Hons) Adv Tch Dip RTS Lady Porter Valerie Mitchell OBE The Rt Hon Lord St John of Fawsley Kerry Rubie (Chair) Sir Roy Strong DLitt PhD FRSA FRSL Elected 25 April 2010 Deceased in year Deborah Coultish Adv Tch Dip RTS Paul Leopold-Kimm Philip Pegler Dip RBS TTC ARAD AISTD AIDTA International Advisers Not re-elected 25 April 2010 Dr Tania Kopytko Australasia Caroline Jenkins ARAD RTS Dirk Badenhorst Africa Sabine Lieb RAD RTS Europe Resigned in year Caroline Carattini RAD RTS Americas Appointed 16 December 2010 Ross Brierton ARAD PDTC Dip (RAD London) Americas



Board of Trustees’ sub-Committees The Board of Trustees is assisted by five sub-Committees (Finance, Education, Artistic and Examinations, Benesh, and Regional) set up to support particular aspects of the Academy’s activities. Membership of sub-Committees is made up of Trustees and co-opted members recruited for their relevant skills and experience. The Board of the Royal Academy of Dance Enterprises Ltd acts in an advisory capacity. During the year the Artistic sub-Committee was renamed the Artistic and Examinations sub-Committee to more accurately reflect its remit. The President and Chairman of the Board of Trustees are ex-officio members of each sub-Committee. Finance sub-Committee Artistic and Examinations sub-Committee Leigh Collins (Chair) Derek Purnell (Chair) Philip Pegler Dip RBS TTC ARAD AISTD AIDTA Karen Berry BSc BA(Hons) Adv Tch Dip RTS Kerry Rubie Frank Freeman FRAD RTS Nigel Wreford Brown Cheryl Thrush ARAD RTS Co-opted: Kathryn Wade ARAD Yvonne Gray RAD RTS Denise Winmill ARAD RTS Co-opted: Board of Directors of Royal Academy of Dance Sue Goodman Dip. Sigurd Leeder MA (Trinity Laban) MA Enterprises Ltd and Enterprises sub-Committee (CSSD) Nigel Wreford Brown (Director)(Trustee)(Chair) Caroline Jenkins ARAD RTS Leigh Collins (Trustee) Moira McCormack ARAD PDTC Dip (RAD London) Helen Taylor RAD RTS (Trustee) David Nixon Kerry Rubie (Trustee) Luke Rittner (Director) Regional sub-Committee Richard Thom BA(Hons) FCA (Director and Co Secretary) Deborah Coultish Adv Tch Dip RTS (Chair)(Northern England, Yorkshire & the Humber) Education sub-Committee Co-opted: Nigel Hildreth MMus PGCE (Chair) Niki Forbes Tch Dip RTS (Scotland) Rosemarie Franklin RAD RTS Siân Dixon Tch Cert RTS (South West England, Wales & Lynne Reucroft-Croome BA(Hons) PGCE LRAD Channel Islands) Co-opted: Penny Parks RAD RTS (South East England) Tina Chen FISTD MA Dip RBS TTC ARAD Sara Gannon-Perez Tch Cert RTS (Ireland & Northern Ireland) Michelle Eyre BHSc (Hons) LRAD Lorna Rookledge RAD RTS (London & Middlesex) Professor Rachel Fensham BA(Hons) GDMD MA PhD Sue Lucas Tch Cert RTS (Midlands & East of England) Philip Garbutt Baroness Hooper Benesh sub-Committee Linda Jasper MA Cert Ed Kathryn Wade ARAD (Chair) Dr Peter Millward Anders Ivarson AI Chor Hilary Moss MA BPhil (Hons) LRAD ARAD Co-opted: Susan Robinson Adv Tch Dip Christopher Hampson Lauren Scholey Jeanetta Lawrence Lady MacMillan Student representatives: Paula Scales (Postgraduate representation) Reena Bhattacharjee (Undergraduate representation) An Audit Committee is drawn from members of the Finance sub-Committee, and a Disciplinary Committee is drawn from members of the Board of Trustees. Executive Management Board Day-to-day operational decisions are taken by the Chief Executive and his staff within the delegated authority conferred by the Trustees. National Administrators of international entities report directly to the Chief Executive.



Internal Control The Trustees are responsible for the Group’s system of internal control and for reviewing its effectiveness and have a comprehensive system of reporting financial results. Annual budgets, quarterly results with comparisons against forecast, and analytical Reports as requested, are presented to the Finance sub-Committee at their four meetings throughout the year. The Trustees review the effectiveness of the internal control system through these reports to the Trustees and management concerns raised by the auditors through the Audit Committee, and recommend appropriate action or caution to the Board of Trustees. Such a system can only provide reasonable and not absolute assurance against material misstatement or loss. The following are considered to be key control procedures:

Quality and integrity of personnel Employees are expected to consider and respect one another and to strive to improve quality, efficiency, safety and financial performance. It is the Academy’s policy to invest in the people needed to support its markets. The Academy has developed a series of Human Resource policies, the most important of which are Equality, Bullying and Harassment, Health and Safety, Data Protection, and Child Protection. All Policies are reviewed annually by the Trustees. Operating unit financial controls The controls and procedures under which each operating department or group entity is required to comply is contained in a Controls Manual which is updated annually. Trustees and Executive Management review the application and effectiveness of these procedures. Internal audit The Finance sub-Committee from time to time reviews the need for an internal audit function and considers that given the size, complexity and structure of the Academy, the existing regular reviews remain adequate at the present time. The appointment of a Group Financial Controller in 2009 to assist the Director of Finance and Administration was made to ensure that Group policies, procedures and controls are followed. Information and computer systems Much of the Academy’s financial and management information is processed and stored on computer systems. Accordingly the Academy has established controls and procedures over the security of data held on computer and put in place appropriate disaster and continuity procedures. In 2009 the Trustees authorised the development of a worldwide database over a three year period so that all offices will be able to communicate on a shared platform thus reducing cost from economies of scale and benefitting from increased efficiency.

Principal risks and uncertainties A number of risks and uncertainties are identified below:

Market place and products The Academy faces competition throughout the world from other awarding organisations who offer multi-genre dance examinations and at a lower cost; from higher education bodies that offer places funded by government; and loss of members who for one reason or another no longer wish to retain membership of the Academy. Foreign exchange The Academy, operating in many jurisdictions, sets its fees in local currencies, while at the same time incurs costs based in sterling. It is therefore prone to fluctuations in its results due to currency gains and losses against sterling. Pandemics The Academy is potentially vulnerable to pandemics such as SARS or avian bird flu or natural phenomena such as volcanic ash clouds or changes in weather patterns where either occurrence prevent young people travelling to and taking part in examinations, or examiners travelling to the place of examination, thereby reducing income. Economic climate In common with many other businesses changes in the economic climate can affect the Academy’s business. The Academy has no real influence over its customers’ financial circumstances - whether member, teacher, examination candidate, higher education student or dance class attendee – which can in turn lead to a reduction in participation in the Academy’s activities.



Principal risks and uncertainties (continued) The Trustees review an assessment of the risks to which the Academy could be exposed on an annual basis, particularly in terms of governance, operational and financial risks. Identified risks are assessed for likelihood and severity or impact. This information is then used to develop a risk management strategy for the Academy, including the identification of existing controls in operation and any new controls the trustees consider necessary. The risk management strategy also informs the annual planning process. With the establishment of an offsite ICT disaster recovery site, the remaining part of the formal Business Disaster and Continuity Plan will be completed in early 2011. Public Benefit The Academy is a charity registered in England and Wales and therefore Trustees are required to have regard to any guidance the United Kingdom’s Charity Commission publish on public benefit and to ensure that they carry out the charity’s aims for the public benefit whenever the exercise of any powers or duties may be relevant. The aims of the Academy as set out in its Charter are to:

(1) elevate and advance the art of dance by promoting the correct tuition of dance in its highest forms; (2) advance education in the art of dance, in particular:

• by providing facilities for dance, dance education and training; • by setting up and maintaining programmes of study for the education and training of dancers, teachers

and notators of dance (such programmes to include, but not be limited to, the study of Benesh Movement Notation, whenever appropriate);

• by setting and conducting examinations in dance and the teaching of dance; • by educating, training, assessing, registering, licensing and chartering teachers of dance who meet

standards determined by the Board from time to time; and • by promoting teaching of dance.

The Trustees have reviewed the Academy’s activities in relation to the public benefit requirement and consider that the activities of the Academy meet the two main principles of public benefit - that the benefits are identifiable and are related to the aims of the Academy; and that the public are the beneficiaries and that there is no significant exclusion as to who can benefit. The Trustees are aware that the fees for its activities cross a wide range. At the top end access funds are available for students to apply for assistance to meet tuition fees for our education programmes, while at the bottom end there are schemes in place such as the Boys Only! or Step into Dance projects, the former providing subsidised places for boys to enjoy dance and the latter grant-aided classes in secondary schools. The Trustees took additional advice during the year which assured them that the current fee level for its examinations and short courses are unlikely to prevent access to those activities; nevertheless the Trustees will continue to consider how access might be improved to examinations and other programmes where the level of fees might be seen as a barrier to entry.



BUSINESS REVIEW The Board of Trustees of the Royal Academy of Dance presents its audited Financial Statements for the year ended 31 July 2010. The statements comply with current statutory requirements, the Charter and the Statement of Recommended Practice for Accounting and Reporting by Charities (2005). These should be read in conjunction with the Annual Review and Report which is published separately and contains a summary of these financial statements on pages 50 - 53. The Trustees are pleased to report that for both restricted and unrestricted activities there was a net incoming resource of £948,961 for the year to 31 July 2010, compared to a net incoming resource of £735,194 reported last year, an improvement of £213,767, a combination of volume growth and exchange gains. This continuing improvement in the Academy’s financial results, seen over the last four years, is a direct result of four elements; three as stated in previous years - the ongoing review of fees, of costs, and the continuing weakness of sterling against other currencies; and a fourth – the internal investment in two areas of the Academy – the creation of a successful portfolio of education programmes within a Faculty of Education and the development of trading, licensing and publication opportunities through Royal Academy of Dance Enterprises Ltd. While all activities improved in the year, these two activities improved by a net £550,170 over the year before. The weakness of sterling saw the basket of currencies in which the Academy operates appreciate by an average of 7.27% with the Euro being the only currency that depreciated in the year. These changes in the exchange rates used to translate the results of offices, branches and subsidiaries this year from last year accounted for £124,580 (2009 £188,798) of the net improvement, together with a further £23,188 (2009 £144,817) in realised exchange gains. Direct costs increased, due to the exchange rates and growth; and indirect support costs due to increases in staffing costs but also investment in information technology and amortisation and depreciation costs through additional investment in assets. The Trustees’ policy over the last four years has been to restore the Academy’s reserves, to provide stability in times of uncertainty and to provide a firm basis from which to develop in the future. This result confirms that policy. Restricted activities The Academy has a number of funds which have been built up from donations, legacies, trusts, grants, fundraising events and appeals for monies. These are administered in accordance with the accounting policy in Note 1 (l) Fund Accounting. This year the funds have been divided into three categories as shown in Note 27 of these Financial Statements. as the Trustees of the Academy designated some funds arising out of the Singapore Genée competition. The Genée International Ballet Competition is the flagship event of the Royal Academy of Dance. Aspiring dancers work with world-renowned choreographers and professionals and perform on an international stage. Its financial success is based on a mix of income from candidates, audience, sponsors and fundraising. Trustees agreed in 2009 that any surpluses arising out of these competitions would go into a designated fund to resource future competitions. In addition to any surplus funds arising out of Genée competitions, members in the United Kingdom were asked to raise funds for the London Genée competition in November 2010, and £27,712 had been raised by the end of the financial year. The Trustees of the Jack Petchey Foundation requested that the Step into Dance project be classified as a Restricted Fund in 2010 and the Financial Statements for 2009 have been restated; however there is no effect on the net incoming resource for either Unrestricted Funds or Restricted Funds in 2009 as project expenditure was matched by project income. Overall there was a net incoming resource from restricted income of £29,724 for the year to 31 July 2010 compared to £19,707 for the prior year. There were excesses of expenditure over income for the Step into Dance project, much to do with its rapid expansion and success, and for the Greek Panel’s Youth Ballet performances funded by grants from the Ministry of Education in Athens. A transfer of £38,496 was made from Unrestricted Funds to cover these shortfalls, increasing the net incoming resource from restricted activities to £68,220. It is hoped that these will be recoverable during the next financial year. Interest earned on funds during the year was £8,684 (2009 £16,800) reflecting the current low interest rates in the United Kingdom, and £15,705 (2009: £600) was awarded in tuition and hardship bursaries and £4,033 (2009 £3,087) in regional scholarships.



Unrestricted activities Unrestricted activities resulted in a net incoming resource of £919,237, an increase of £203,750 over the surplus of £715,487 for the year before. As stated above £38,496 was transferred from Unrestricted Funds to cover shortfalls in the Step into Dance project and the Greek Panel’s Youth Ballet performances. After the transfer the net incoming resource for unrestricted activities was reduced to £880,741. Performance by activity Income from unrestricted activities rose from £15,843,537 to £17,051,303 or 7.6% with total costs increasing from £15,128,050 to £16,132,066 or 6.6%. As reported above, this increase in both income and costs is primarily due to the growth in Faculty of Education programmes, in particular the Certificate in Ballet Teaching Studies; and Royal Academy of Dance Enterprises Ltd trading and licensing. In addition there was growth from increases in fee levels across all activities in 2010, the effect of translating income and expenditure at the year end exchange rates and good attendances on summer schools and the remaining courses for the Academy’s new Pre-Primary in Dance and Primary in Dance syllabus: Table 1 Net contribution from unrestricted activities before the allocation of indirect support costs Year to 31 July 2010 Year to 31 July 2009 Change Income Expenses Net Income Expenses Net in year £000 £000 £000 £000 £000 £000 £000 Voluntary income 3 - 3 1 - 1 2 Activities for generating funds 273 (34) 239 217 (17) 200 39 Investment income 57 - 57 66 - 66 (9) From generated funds 333 (34) 299 284 (17) 267 32 Examinations 9,372 (5,707) 3,665 8,753 (5,179) 3,574 91 Education programmes 3,113 (2,241) 872 2,507 (2,099) 408 464 CPD programmes 21 (83) (62) 20 (66) (46) (16) Training courses 1,056 (915) 141 1,103 (934) 169 (28) Summer schools 738 (557) 181 661 (512) 149 32 Competitions and events 267 (272) (5) 119 (145) (26) 21 Education and training 5,195 (4,068) 1,127 4,410 (3,756) 654 473 Subscription income 908 (634) 274 858 (659) 199 75 Primary purpose trading 1,028 (785) 243 1,169 (986) 183 60 Other income and costs 215 (389) (174) 369 (282) 87 (261) From charitable activities 16,718 (11,583) 5,135 15,559 (10,862) 4,697 438 Governance costs - (228) (228) - (313) (313) 85 Indirect support costs (Table 2) - (4,287) (4,287) - (3,936) (3,936) (351) Net incoming resources 17,051 (16,132) 919 15,843 (15,128) 715 204 Activities for generating funds The main source of income from activities for generating funds comes from licensing income, generated through Royal Academy of Dance Enterprises Ltd. and the hire of studios at the Academy’s headquarters. Gross income from licensing fees from approved manufacturers, royalties and commission from co-branded products increased to £202,619 (2009: £176,240) but legal fees arising out of negotiations with new licensees reduced the net contribution to £190,739 (2009 £164,282). The external hire of studios, when surplus to charitable activities, increased significantly in the year due to an interest in dance on television, the rental of which enabled some improvements to be made to the studios as a whole.



Charitable activities Examinations Overall net examination contribution rose during the year by 2.5% due to fee increases in 2010 and the result of exchange rates, while examination entries decreased by 3.3%. Net grades income fell by 1.5% while vocational grades net income rose by 7.6%. Direct examination expenditure rose by £528,189 or 10.2%. Quality assurance spending rose from £347,931 last year to £410,781 this year – £280,665 (2009: £176,128) for examiner standardisation, and £130,116 (2009: £171,803) for examination data processing. Net contribution margins before the allocation of support costs fell marginally from 40.8% to 39.1%. Graded entries dropped slightly from 213,090 to 203,517, or 4.5%, while vocational graded examination entries rose from 18,574 to 20,675, or 11.3%. The decrease in graded examinations can be primarily ascribed to a decrease at Primary level as teachers’ switch over to Primary in Dance. Entries at the Pre-Primary level were similar to 2009 with Pre-Primary in Dance class awards now accounting for 50% of entries. Entries at Primary level are down 5,164 entries on 2009, but Primary in Dance accounts for 39% of all entries at that level. Education Education programme gross revenues increased by 44% or £606,236. This was driven by buoyant recruitment to all programmes; but specifically the Certificate in Ballet Teaching Studies whose revenues increased by £442,436 or 31%, with a 24% increase in student numbers. This programme accounts for 60% of education revenues, up from 57% last year. Overall net education contribution rose during the year by 113.7% through a combination of fee increases, the result of exchange rates, and student numbers increasing by 12.6%. Direct education expenditure rose by £142,270 or 6.7%. Net contribution margins before the allocation of support costs increased significantly from 16.3% to 28%. CPD During the year the Academy continued to pilot Continuing Professional Development models, building on initial work started in 2007/08. This has cost £161,512 to date, £69,290 (after the allocation of indirect support costs) in the current year. Training Turnover from training courses, summer schools and events increased by 9.4% to £2,060,803 (2009 £1,883,829) during the year, continuing to benefit from a worldwide programme of courses to introduce the new Pre-Primary in Dance and Primary in Dance to teachers and the popularity of summer school programmes. Costs rose proportionately by 9.6% to £1,744,266. Margins before support costs remained static at 15.5%. This year a USA summer school was held successfully, having had to cancel in 2009, and a very successful summer school was held in Indonesia. The Genée International Ballet Competition held in Singapore in 2009 was extremely successful both artistically and financially, making a small surplus of £2,219 as opposed to the previous year where the Toronto Competition although an artistic success had resulted in an expected loss of £17,485. Membership Subscription income rose by 5.8% helped by a growth in registered teachers, currency movements and an increase in membership subscriptions. Costs of publications and administration decreased by 3.8% contributing to an improved net contribution before support costs. The costs of membership administration include corporate marketing costs. Primary purpose trading Royal Academy of Dance Enterprises Ltd and the Academy’s branch outlets had an extremely successful year, and while gross sales turnover decreased from £1,168,781 to £1,028,245, net overall contribution before support costs rose from £183,146 to £242,983. Including licensing income, Royal Academy of Dance Enterprises Limited was able to increase its gift aid donation to Royal Academy of Dance from £208,000 to £290,000. Other income and expenditure Advertising, BMN license-to-use fees, sundry income and gains on foreign exchange make up Other Income. The main decrease in income relates to the decrease in realised exchange gains falling from £144,187 to £23,188 this year. Costs include corporation tax paid by Group companies. £300,901 of the £388,707 relates to corporation or withholding tax paid, compared to £205,878 in the previous year. The balance of the costs relate to the administration of the Benesh Institute.



Governance costs Governance costs consist of the meeting costs of Trustees and associated sub-Committees and audit, assurance, accounting and legal costs associated with the governance of the charity. It also includes local director costs for some international subsidiaries where it is necessary to have local representation. Assurance and accounting costs fell as did legal costs. Indirect support costs Indirect support costs are those costs that cannot be attributed directly to an activity. They are allocated at the year end against the net contribution (Table 1) in accordance with the accounting policy in Note 1 (j) Recognition of expenditure (d). Total indirect support costs rose by £350,834 or 8.9% across the group; commensurate with the increases in turnover and cost, primarily driven by the year-end exchange rates. Head office support costs only rose by £87,906 (2009 109,931) or 4.4%. Table 2 Indirect support costs for unrestricted activities

2009/10 2008/09 Change £000 £000 £000 % Salaries and pensions 2,334 2,132 +202 +9.47% General administration 923 965 -42 -4.35% Information technology 330 217 +113 +52.07% Financing charges 94 85 +9 +10.59% Depreciation 205 173 +32 +18.50% Rent and property 401 364 +37 +10.16% 4,287 3,936 +351 +8.92%

Table 3 Net contribution from unrestricted activities after the allocation of indirect support costs

Year to 31 July 2010 2009 Net Indirect Net Net Contribution Support Contribution Contribution Change before Costs after after in year £000 £000 £000 £000 £000 (Table 1) Voluntary income 3 - 3 1 2 Activities for generating funds 239 (65) 174 143 31 Investment income 57 - 57 66 (9) From generated funds 299 (65) 234 210 24 Examinations 3,665 (1,672) 1,993 2,046 (53) Education programmes 872 (647) 225 (183) 408 CPD programmes (62) (7) (69) (53) (16) Training courses 141 (388) (247) (255) 8 Summer schools 181 (271) (90) (106) 16 Competitions and events (5) - (5) (26) 21 Education and training 1,127 (1,313) (186) (623) 437 Subscription income 274 (413) (139) (145) 6 Primary purpose trading 243 (231) 12 (30) 42 Other income and costs (174) (26) (200) 60 (260) From charitable activities 5,135 (3,656) (186) (623) 437 Governance costs (228) (567) (795) (802) 7 5,206 (4,287) 919 715 203



Indirect support costs (continued) Examination support costs rose by £141,568 or 9.2%. Overall margins declined from 23.3% to 21.3%. Examinations continue to fully cover their allocated share of indirect support costs. Education support costs rose by £39,919 or 2.9%. Overall margins increased to 7.2% from a previous loss. Education covered its allocated share of indirect support costs for the first time. Training support costs decreased from £684,665 to £658,433. Training courses after both direct expenditure and indirect support costs had an overall loss of £341,896; an improvement however of £384,624 on the year before. Indirect salaries and pension support costs rose £202,403 or 9.5% across the Group, in line with the incremental increase in business, and through a 6% increase in staff both in the United Kingdom and internationally. General administration fell by £41,890 or 4.3%; information computer technology by 51.7% and property costs by 10.1%. Depreciation rose by 18.7% due to the increased investment in information technology both through operating expenditure and capital expenditure. Financing costs rose by £6,670 or 10.1%. Performance by region All regions held their percentage share of the Academy’s turnover, but there was some change in overall performance due to the weakness of sterling against other currencies, particularly evident in Europe and Asia; and the mix of activities for example in Asia where the Genee was held in 2009 and a Summer School in Indonesia; and in North America where a successful Summer School was held in the United States. Table 4 Turnover from unrestricted activities by region

No of % of 2009/10 2008/09 countries RAD Income Expenses Net Income Expenses Net Turnover £000 £000 £000 £000 £000 £000 UK 1 37% 6,323 (6,451) (128) 1 6,474 (6,511) (37)Europe 19 18% 3,017 (2,773) 244 19 2,989 (2,744) 245Asia 14 17% 2,820 (2,317) 503 14 2,147 (1,748) 399Australasia 2 13% 2,226 (2,122) 104 2 1,933 (1,873) 60North America 2 9% 1,491 (1,359) 132 2 1,275 (1,242) 33Africa 6 2% 395 (401) (6) 6 389 (376) 13South America 3 2% 373 (316) 57 4 315 (336) (21)Central America 5 2% 306 (286) 20 5 229 (194) 35Middle East 4 - 63 (61) 2 2 49 (53) (4)Caribbean 6 - 37 (46) (9) 6 43 (51) (8) 62 100% 17,051 (16,132) 919 61 15,843 (15,128) 715

[Net result shown after management charges. 2009 restated]

Activities took place in 62 countries during the year, compared to 61 the year before; Jordan and Lebanon replacing India which has examinations every other year. There has been a significant improvement overall in the profitability of all group entities, with combined losses before the allocation of head office charges of £34,202 from only 8 areas (representing 14 countries) compared to the year before, with 9 areas (representing 11 countries) making combined losses of £89,150. Similarly after allocation of head office charges there would have been combined losses of £81,231 compared to £126,784 the previous year, although the number of areas rose from 13 to 16 areas (representing 15 and 26 countries respectively). Although there has been an improvement over the years in the overall performance of the countries in which the Academy operates, Trustees are aware that all regions of the Academy need to operate profitably so that the Group as a whole can be benefit.



Table 5 Table 6 Market leaders by turnover from unrestricted activities Group by turnover from unrestricted activities

2009/10 2008/09

Rank Turnover

£000 Rank Turnover

£000

No of offices, branches or subsidiaries falling into the turnover bands

2010 2009 UK 1 6,323 1 6,474 Australia 2 1,880 2 1,620 £5M+ 1 1 Canada 3 1,133 4 953 £1M - £5M 4 3 Italy 4 1,024 3 1,009 £200K - £1M 14 14 Hong Kong 5 835 5 728 £100 - £200K 2 4 Singapore 6 682 8 363 £0 - £100K 30 30 Spain 7 467 6 469 Japan 8 416 10 341 South Africa 9 395 7 389 Germany 10 394 9 363

The United Kingdom remains the largest market by turnover, followed by Australia. Performance against targets The Trustees budgeted for a Group surplus for the year to 31July 2010 of £463,111 based on prior year exchange rates. This has been exceeded by the excellent result of £919,237. UK operations turned in a surplus of £89,567 after group management charges against budget of £95,222 but before group consolidation adjustments of £57,451. The Group branches and subsidiaries outperformed original budget expectations of £367,889 by a further £404,330. Approximately £100,000 of this is due to changes in the basket of currencies with the remainder due to better performances across the whole Group.

Table 7 Key performance indicators

2009/10 2008/09 2009/10 Actual Prior Year Target

Education programme recruitment (continuing and current):

Master of Teaching (Dance) 24 - 20 PGCE: Dance Teaching 20 20 20 BA (Hons) Ballet Education 79 70 76 BA (Hons) Dance Education 87 71 92 LRAD 63 59 60 PDTD 21 12 18 CBTS 805 731 684 Total students on education programmes 1,099 963 970

Candidates taking examinations, class awards, presentation and demonstration classes:

Graded 203,517 213,090 212,796 Vocational graded 20,675 18,574 18,467 Total examinations 224,192 231,664 231,263

Membership recruitment:

Registered and mutually recognised teachers 7,347 7,015 7,197 Full members 2,586 2,626 2,607 Affiliate members 2,349 2,358 2,674 Friends of the Academy 321 354 437 Total members 12,603 12,353 12,915



Operating cash flows and capital expenditure The Group’s overall net cash and loans position increased to £6,096,786 compared to £4,818,376 the year before. £391,204 (2009 £284,219) of the improvement is a gain due to exchange movements. The remaining £887,206 (2009 £1,241,469) primarily reflects the improvement in net incoming resources, and in increase in deferred income of £431,119 against the previous year. Deferred income arises because the southern hemisphere’s closing dates for examinations fall into the current financial year, while the actual examinations take place in the following year; and the Faculty of Education’s Certificate in Ballet Studies is a two-year programme that falls across three financial periods. In the United Kingdom, a number of summer schools and courses take place in August with closing dates falling in the current year This income is treated as deferred in accordance with the Academy’s accounting policies. During the year there was a net transfer of reserves through dividends and capital remittances of £497,035, after a tax charge of £57,400, from international entities to the United Kingdom; as a result the Academy was able to place £450,004 on deposit, while at the same reducing its borrowings from £420,019 to £61,846 following the improvement in its results for the year. HSBC Bank Plc the Academy’s main banker in the United Kingdom renewed the Academy’s grouping facility of £700,000; and Royal Academy of Dance Enterprises Limited’s overdraft facility of £200,000 for a further year in October 2010. Net assets and net debt Group net assets increased to £10,454,542 from £8,316,619 reflecting the increase in net incoming resources, the increase in the value of the buildings held by the Academy for charitable use, and exchange gains arising out of the revaluation of the accumulated funds and revaluation reserve at the end of the financial year. Net current assets less long term liabilities rose significantly from £1,803,218 to £2,919,251. This reflects the improvement in the cash position and, as in previous years, includes deferred income relating to activities completing or commencing after the year-end. Interest Finance charges increased from £86,381 to £93,872. These charges relate primarily to the financing of the Academy’s overdraft and loan facilities in the United Kingdom, but include charges for international transactions, credit cards and other forms of monetary transactions. While benefitting from the improvement in the Academy’s overdraft in the United Kingdom and the fall in base rates, the increase in finance charges is as much the change in the way that customers pay and reflect a higher transaction base in the year. At the end of the financial year the net balance of all funds held in the United Kingdom was £625,379 in credit, a further improvement on the £185,381 last year. Taxation The Academy is required to pay corporation and income tax on the surpluses earned by incorporated subsidiaries within the Group. The tax charge for the year was £300,900 an increase from £205,879 last year; however £57,400 of the charge was due to tax withheld on intra-group dividends and capital remittances for the transfer of reserves during the year, while the balance of £243,500 reflects the better performances of those incorporated subsidiaries that are required to pay tax on profits. As the Royal Academy of Dance is exempt from corporation tax in the United Kingdom, it cannot take advantage of double taxation agreements. Reserves policy The reserves policy is to ensure that the Academy’s core activities can be maintained during a period of unforeseen difficulty. The trustees consider that readily realisable reserves to be the amount of reserves that are easily convertible into cash should the need arise. The trustees established a policy that there should be at least £500,000 in readily realisable reserves and that they should be held on behalf of the Group in the United Kingdom. As of 31 July 2010 Group reserves stood at £2,442,103 (2009: £1,427,256), with UK reserves at £229,553, an improvement of £563,492 due to the net transfer of reserves through dividends and capital remittances of £497,035 from international entities during the year. Trustees will continue to take appropriate measures to ensure that reserves are strategically positioned within the Group.



Table 7 Net assets and other reserves

2010 2009 £000 £000

Bank accounts (excluding restricted fund bank accounts) 5,620 4,442 Working capital (3,178) (3,015) Net assets 2,442 1,427 Freehold property (net of mortgage) 6,934 5,920 Restricted reserves (held for use of RAD projects and access funds) 691 617 Other fixed assets (excluding freehold property) 387 352 Other reserves 8,012 6,889 Total reserves 10,454 8,316

Going concern and liquidity risk As the Royal Academy of Dance, either as a Group or a UK charity, does not issue formal half yearly statements the Trustees rely on quarterly Management Accounts which include assessment of performance against budget, forecasts of year end position, and bank positions which are presented to them as members of the Finance sub-Committee, Board of Directors of Royal Academy of Dance Enterprises Ltd and as Trustees at their respective meetings to assess the company’s ability to continue as a going concern. During the year the Trustees took action to remit reserves held overseas without detriment to those branches and subsidiaries’ abilities to continue as going concerns themselves. This policy to reposition reserves will continue. As a result reserves held in the United Kingdom improved from a negative position of £333,959 in 2009 to £229,553 in 2010. The Group as a whole held £2,442,103 in reserves in 2010 against £1,427,257 the year before.

The Trustees of the Royal Academy of Dance therefore conclude that there are no material uncertainties as of the date of this report which may cast doubt about the company’s ability to continue as a going concern. Future outlook In the first quarter of the 2010/11 financial year revenues in the United Kingdom from all activities hit their targets. The Trustees are keenly aware that action taken by the government in the United Kingdom and elsewhere in reducing social benefit programmes and changing the way education is funded may affect the customers of the Academy. Trustees however are confident that an equitable balance has been reached between the contribution from examinations, and the contribution from education which will cushion a downturn in either; nevertheless Trustees continue to remain vigilant about potential downturns. In 2010/11 the Faculty of Education will continue its pilot of a Continuing Professional Development programme that will suit the needs of the membership, and work on the second part of the development of a worldwide database will commence. The new Intermediate Foundation and Intermediate syllabus will be launched and courses held in 2011. In addition the Trustees will continue its programme of reviewing various aspects of the potential development of the Academy’s headquarters. The Academy is an international organisation. It operates in many jurisdictions and in a competitive complex and demanding environment. The Trustees will continue to ensure that the Academy minimises risks and uncertainties to enable it to deliver high-quality services to its customers and to ensure the ongoing development of its students, examiners, teachers and staff. The dedication of its staff and its members, together with the support of the Academy’s President, Vice-Presidents, Advisory Council, Trustees and its committee members, examiners, teachers, students and parents make the Academy a powerful force in delivering its mission to improve the practice, teaching and understanding of dance internationally. Together, we would like to pay tribute to and thank all those without whose support and dedication our task would be made infinitely more difficult. Kerry Rubie Luke Rittner Trustee, Board of Trustees Chief Executive 14 February 2011



STATEMENT OF THE BOARD OF TRUSTEES’ RESPONSIBILITIES The Board of Trustees are responsible for the preparation of the financial statements, which give a true and fair view of the state of affairs of the Charity and the Group, as at the end of the financial year, and of the net movement in funds of the Group for the period. In preparing these financial statements, the Trustees confirm that:

• suitable accounting policies have been used and applied consistently.

• reasonable and prudent judgements and estimates have been made in the preparation of the financial statements for the year ended 31July 2010.

• applicable accounting standards have been followed and that the financial statements have been prepared on the going concern basis.

• the Annual Accounts have been prepared in accordance with the Statement of Recommended Practice on Accounting and Reporting by Charities (SORP 2005) issued by the Charity Commission in March 2005.

The Board of Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Group and which enable them to ensure that the financial statements comply with the Charities Act 1993. They are also responsible for the system of internal control, for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and to provide reasonable assurance that:

• the Charity is operating efficiently and effectively;

• all assets are safeguarded against unauthorised use or loss and are properly applied;

• proper records are maintained and financial information used within the Charity or in publications are reliable; and

• the Charity complies with relevant laws and regulations.

The systems of internal control are designed to provide reasonable but not absolute assurance against material misstatement or loss. They include:

• a strategic plan and annual budget approved by the Board of Trustees;

• regular consideration by the Board of Trustees of financial results, variations from budget, non-financial performance indicators and benchmarking reviews;

• delegation of day to day management authority and segregation of duties; and

• identification and management of risks.

The requirements of the Charity Commission guidelines on Internal Controls (CC8) have been followed in all material respects.



INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF ROYAL ACADEMY OF DANCE We have audited the financial statements of Royal Academy of Dance for the year ended 31July 2010 which comprise the statement of financial activities, the balance sheets, the cash flow statements, the notes to the cash flow statements 1 to 6 and the related notes 1 to 31. These financial statements have been prepared under the accounting policies set out therein. This report is made solely to the Trustees of the Charity, as a body, in accordance with section 43 of the Charities Act 1993 and regulations made under section 44 of that Act. Our audit work has been undertaken so that we might state to the Trustees of the Charity those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of the Trustees and auditors The Trustees’ responsibilities for preparing the Annual Report and financial statements in accordance with applicable law and United Kingdom accounting standards (United Kingdom Generally Accepted Accounting Practice) are set out in the Statement of the Board of Trustees’ Responsibilities. We have been appointed as auditors under section 43 of the Charities Act 1993 and report in accordance with regulations made under section 44 of that Act. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Charities Act 1993, and the Academy’s Charter. We also report to you if, in our opinion, the Trustees’ report is not consistent with the financial statements, if the charity has not kept sufficient accounting records, if the charity’s financial statements are not in agreement with those accounting records or if we have not received all the information and explanations we require for our audit. We read the Trustees’ Report and consider the implications for our report if we become aware of any apparent misstatements within it. Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the circumstances of the Charity and the Group’s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the financial statements. Opinion In our opinion: • the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting

Practice, of the state of affairs of the Charity and the Group as at 31 July 2010 and of the incoming resources and application of resources of the Group for the year then ended; and

• that the financial statements have been prepared in accordance with the Charities Act 1993 and the Academy’s Charter. Deloitte LLP Chartered Accountants and Statutory Auditors LONDON



GROUP CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES For the year to 31 July 2010

2010 2009 Unrestricted Restricted Total Unrestricted Restricted Total funds funds funds funds funds funds £000 £000 £000 £000 £000 £000

Notes Incoming resources From generated funds 2 Voluntary income 3 2 5 1 - 1 3 Activities for generating funds 273 116 389 217 50 267 4 Investment income 57 2 59 66 1 67 From charitable activities 5 Examination fees 9,372 - 9,372 8,753 - 8,753 6 Education and training fees 5,195 315 5,510 4,410 313 4,723 Subscription income 908 - 908 858 - 858 7 Other primary purpose trading 1,028 - 1,028 1,169 - 1,169 8 Other incoming resources 215 - 215 369 - 369 Total incoming resources 17,051 435 17,486 15,843 364 16,207 Resources expended 9 Costs of generating funds (99) (41) (140) (74) (23) (97) 10 Costs of charitable activities (14,823) (360) (15,183) (13,943) (319) (14,262) 11 Governance costs (795) (1) (796) (802) - (802) 12 Other resources expended (415) (3) (418) (309) (2) (311) Total resources expended (16,132) (405) (16,537) (15,128) (344) (15,472) Net incoming resources before transfers 919 30 949 715 20 735

13 Transfers between funds (38) 38 - - - - Net incoming resources 881 68 949 715 20 735 Other recognised gains and losses On investments held for investment purposes Realised gains - 3 3 - - - Unrealised gains - 2 2 - - - On revaluation of tangible fixed assets 885 - 885 (443) - (443) Movement on exchange arising from the

consolidation of branches and subsidiaries 298 1 299 159 - 159 Total other recognised gains and losses 1,183 6 1,189 (284) - (284) Net movement in funds 2,064 74 2,138 431 20 451 Fund balances brought forward at 1 August 7,699 617 8,316 7,268 597 7,865 Total funds carried forward at 31 July 9,763 691 10,454 7,699 617 8,316

All activities derive from continuing operations



GROUP AND CHARITY BALANCE SHEETS As at 31July 2010

Group Charity 2010 2009 2010 2009 £000 £000 £000 £000

Notes Fixed assets

20 Intangible Assets 4 3 1 - 21 Tangible Assets held for charitable use 7,502 6,479 7,317 6,316 22 Investments 29 31 103 82

7,535 6,513 7,421 6,398

Current assets 23 Stocks 345 271 101 99 24 Debtors 1,060 767 1,320 990 Cash at bank and in hand 6,513 5,585 4,446 3,925 7,918 6,623 5,867 5,014

25 Creditors - amounts falling due within one year (4,837) (4,631) (3,675) (3,759) Net current assets 3,081 1,992 2,192 1,255

26 Creditors - amounts falling due after more than one year (162) (189) (147) (177) Net assets 10,454 8,316 9,466 7,476 FUNDS

27 Restricted Funds 691 617 683 611

28 Unrestricted Funds Accumulated funds 3,937 2,855 3,059 2,111 Revaluation reserves 5,826 4,844 5,724 4,754 Total funds 10,454 8,316 9,466 7,476

These financial statements were approved and signed on behalf of the Board of Trustees on 14 February 2011 by:

Kerry Rubie Leigh Collins Trustee, Board of Trustees Trustee, Board of Trustees



GROUP CASH FLOW STATEMENT For the year to 31July 2010

2010 2009 £000 £000

Net cash inflow from operating activities (note 2) 1,410 1,700 Returns on investments and servicing of financing (note 3) (35) (20) Taxation – overseas (301) (206) Capital expenditure (note 4) (187) (235) Net cash inflow before financing 887 1,241 Management of financing (note 5) (27) (25) Increase in cash in the year 860 1,216

Notes

1 Reconciliation of net flows to movement in net funds Increase in cash in the year 860 1,216 Cash outflow from management of financing 27 25 Change in net funds resulting from cash flows 887 1,241 Effect of foreign exchange rates 391 284 Movement in net funds in the year 1,278 1,525 Net funds at 1st August 4,818 3,293 Net funds at 31st July (note 6) 6,096 4,818

2 Reconciliation of net incoming resources to net cash inflow from operating activities Net incoming resources before transfers 949 735 Interest receivable (59) (67) Interest payable 94 87 Taxation payable 301 206 Depreciation - tangible fixed assets 210 176 Gain on disposal of tangible fixed assets (1) (2) Gain on disposal of investments (4) - (Increase) decrease in stocks (73) 65 Increase in debtors (293) (98) Increase in creditors 527 790 Effect of foreign exchange rates on net assets (241) (192) Net cash inflow from operating activities 1,410 1,700

3 Returns on investments and servicing of financing Interest receivable 59 67 Interest payable (94) (87) Net cash outflow from returns on investment and servicing of finance 35 (20)



GROUP CASH FLOW STATEMENT For the year to 31July 2010

2010 2009 £000 £000

4 Capital expenditure Purchase of tangible fixed assets (198) (234) Purchase of investments for restricted purposes - (3) Proceeds from sale of tangible fixed assets 1 2 Proceeds from sale of investments for restricted purposes 10 - Net cash outflow from capital expenditure (187) (235) 5 Management of financing Repayment of amounts borrowed from banks (27) (24) Amounts repaid on finance leases - (1) Net cash outflow from management of financing (27) (25) At Exchange At

1st August Cash flows Movements 31st July 2009 2010 £000 £000 £000 £000

6 Analysis of movement in net funds Bank balances and cash in hand held overseas 4,942 3 392 5,337 Bank balances and cash in hand held in the United Kingdom 642 534 - 1,176 Bank overdraft borne in the United Kingdom (556) 324 - (232)

5,028 861 392 6,281 Amounts due after more than one year Bank loans (178) 26 (1) (153) Amounts falling due within one year Bank loans (32) - - (32)

4,818 887 391 6,096



ACCOUNTING POLICIES Year ended 31July 2010 (a) Basis of accounting

These accounts have been prepared in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities” (SORP 2005) and accounting standards; the Charities Act; and the historic cost basis of accounting except for investments and fixed assets which have been included at revalued amounts.

(b) Going concern

These accounts have been prepared on a going concern basis. In common with other charities, the Academy faces uncertainties arising from current economic conditions. Page 16 of this financial report and statements discusses these uncertainties and explains why the Trustees have concluded that the business is a going concern.

(c) Basis of consolidation The Charity accounts include the audited accounts of the Royal Academy of Dance in the United Kingdom and its

branches for the year to 31 July 2010, and the Consolidated Group accounts include the audited accounts of the charity and its subsidiaries.

(d) Stocks and work-in-progress Stocks of goods for resale are stated at the lower of cost and net realisable value. Costs relating to the development

of examination syllabi and teaching aids are treated as work-in-progress until the product is realised. (e) Tangible fixed assets All tangible fixed assets, other than freehold land, are stated at cost or valuation net of depreciation and any provision

for impairment. Depreciation is provided on cost using the straight-line method over the estimated useful lives of the assets. Impairment reviews are conducted when events and changes in circumstances indicate that an impairment may have occurred. If any asset is found to have a carrying value materially higher than its recoverable amount, it is written down accordingly. Freehold land is not depreciated. Tangible fixed assets under £500 are not capitalised. The rates of depreciation are as follows:

Freehold buildings 2%pa Furniture and office equipment 10%pa Computer equipment 33%pa Motor vehicles 25%pa

(f) Investments Listed investments are included in the Balance Sheet at market value. Investments in subsidiaries are included in the

charity’s accounts at cost less provision for impairment. (g) Revaluation of assets Investments and land and buildings held by the group for restricted and unrestricted use are revalued annually where

material. The gain or loss is reflected in the statement of financial activities and, for land and buildings, includes the amount of depreciation provided in that year.

(h) Overseas currencies Income, expenditure, assets and liabilities of overseas branches and subsidiaries are translated into sterling at the

exchange rates ruling at the balance sheet date. The exchange gains or losses arising from the retranslating of opening net assets of the overseas branches and subsidiaries are shown under Other recognised gains or losses in the statement of financial activities. All other exchange gains or losses are dealt with through resources expended within the statement of financial activities.

(i) Recognition of income

Unrestricted income is recognised in the statement of financial activities on a receivable basis. This is when the Royal Academy of Dance has entitlement, reasonable certainty of receipt and the amount can be measured. If there are conditions that have to be fulfilled before entitlement to income received the income is deferred and included under creditors. Assets given for use by the Royal Academy of Dance are recognised as incoming resources at their estimated market value when receivable. If they form part of the fixed assets at the year-end they are included in the balance sheet at the value at which the gift was included in incoming resources.



ACCOUNTING POLICIES Year ended 31July 2010

(i) Recognition of income (continued)

Income received in advance for exams or short courses where the activity does not start or complete until after the year end is accounted for in the year of completion of that activity; or fees for programmes such as the Faculty of Education’s Certificate in Ballet Studies which is a two-year programme that falls across three financial periods.

(j) Recognition of expenditure Unrestricted expenditure is accounted for on an accruals basis. Expenditure is allocated directly to the activity of

which it relates, including support costs that can be identified as being an integral part of direct charitable expenditure.

(a) Costs of generating funds: costs of generating funds include expenditure related to support departments and staff members engaged in or contributing to those activities.

(b) Costs of charitable activities: charitable expenditure includes all expenditure related to the objects of the charity and includes expenditure related to support departments and staff members engaged in or contributing to charitable activities.

(c) Governance costs: these are costs associated with the constitutional and statutory requirements of the Group, and include expenditure related to the trustees and senior staff members engaged in or contributing to the governance of the Group.

(d) Indirect support costs have been allocated on the following bases: Salaries and pensions: time spent or responsibilities General administration: estimated or actual usage Information technology: estimated or actual usage Rent and property: space occupied or used Depreciation: assets occupied or used

(k) Pension costs Retirement benefits to employees are provided by defined contribution pension schemes. Contributions payable to the

pension schemes in respect of each accounting period are charged to the statement of financial activities. (l) Fund accounting Restricted income and expenditure is recognised on a receipts and payments basis. Funds can be classified as

Restricted, Designated or Project. They arise from a number of sources, which include:

(a) Donations, legacies, scholarships, bursaries and trusts left to the Royal Academy of Dance and its branches and subsidiaries to administer in accordance with the conditions laid down therein.

(b) Grants, sponsorship and project money awarded to the Royal Academy of Dance and its branches and subsidiaries where conditions are related to their expenditure.

(c) Fundraising events and appeals for monies for specific purposes set up by the Royal Academy of Dance and its branches and subsidiaries.

(d) Funds from unrestricted activities designated or set aside by Trustees to fund particular activities. (e) Income and expenditure is treated as per notes (i) and (j). All expenditure in pursuance of the conditions is shown

as restricted fund expenditure. (f) Scholarships and bursaries are paid at the time when the activity for which the award is made requires payment. (g) Transfers of funds from unrestricted to restricted funds will occur where Trustees have agreed to fund an excess

of expenditure over income. (m) Regional advisory panels and committees The charity carries out some activities through a network of regional advisory panels and committees that include the

name of the charity in their title, and are located in only some of the countries in which the charity operates. All regional advisory panel and committee transactions are accounted for gross in the accounts of the charity, and all assets and liabilities are included in the charity’s balance sheet.

(n) Treatment of VAT

The Royal Academy of Dance is registered as partially exempt for VAT in the United Kingdom, and is exempt or liable for VAT or applicable taxes in other parts of the world. Irrecoverable VAT is charged to the activity to which it relates or otherwise forms part of the support costs and apportioned as per note (j).



NOTES to the ACCOUNTS Year ended 31July 2010 Notes

2010 2009 Unrestricted Restricted Total Unrestricted Restricted Total funds funds funds funds funds Funds £000 £000 £000 £000 £000 £000 Incoming resources from generated funds 2 Voluntary income Donations, gifts and legacies 3 2 5 1 - 1 3 2 5 1 - 1 3 Activities for generating funds Fundraising activities - 114 114 - 48 48 Royalties and commission 2 - 2 8 - 8 Property and studio hire 68 2 70 33 2 35 Licensing income 203 - 203 176 - 176 273 116 389 217 50 267 4 Investment income Interest received 57 2 59 66 1 67 57 2 59 66 1 67 Incoming resources from charitable activities 5 Examination fees Graded examinations 7,474 - 7,474 7,217 - 7,217 Vocational Graded examinations 1,898 - 1,898 1,536 - 1,536 9,372 - 9,372 8,753 - 8,753 6 Education and training fees University validated programmes 1,085 - 1,085 952 - 952 RAD validated programmes 2,028 - 2,028 1,555 - 1,555 3,113 - 3,113 2,507 - 2,507 CPD, training and other courses 1,077 - 1,077 1,122 23 1,145 Summer schools 738 - 738 662 - 662 Events and competitions 267 9 276 119 - 119 2,082 9 2,091 1,903 23 1,926 Step in Dance project - 306 306 - 290 290 5,195 315 5,510 4,410 313 4,723

Government funding

The Academy, through the Faculty of Education, is in receipt of government funding as a result of being granted Initial Teacher Training Accredited Provider status by the UK’s Training and Development Agency for Schools (TDA). In the fiscal year 2010 total funds received were £268,357 (2009: £250,476), including the Master of Teaching (Dance) programme.




Government funding (continued)

These funds are included within the income shown as University validated programmes. These were disbursed in accordance with the Financial Memorandum between the two organisations. A separate Financial Statement and Balance Sheet is available on request.

7 Other primary purpose trading

Other primary purpose trading consists of sales made by Royal Academy of Dance Enterprises Limited and branch outlets of the Royal Academy of Dance. The company acts as the publishing and distribution arm for the Royal Academy of Dance Examinations Board; publishing and selling its syllabi and related teaching resources, in addition to other dance related products. Its products are sold and distributed through its website, catalogues, a shop outlet located within Royal Academy of Dance in Battersea, branch outlets and selected stockists. Income in the year includes money received from licensing fees. The company transfers its taxable annual profits to the Academy as Gift Aid payments.

2010 2009 £000 £000

Turnover net of taxes 1,028 1,169 Less : cost of sales and discounts (470) (656) Gross profit before: 558 513 Distribution and selling (97) (100) Administration (196) (205) Interest payable (21) (25) Tax payable (1) - Net income from primary purpose trading 243 183 Net income from activities for generating funds (notes 3 and 9) 191 164 Total net income from trading 434 347 Amount gifted to charity (290) (208) Taken to reserves 144 139 Income from primary purpose trading 1,028 1,169 Trading costs (note 10d) (785) (986) Net income from primary purpose trading 243 183

2010 2009 Unrestricted Restricted Total Unrestricted Restricted Total funds funds funds funds funds funds £000 £000 £000 £000 £000 £000 8 Other incoming resources Advertising income 48 - 48 48 - 48 BMN licensing and other income 85 - 85 82 - 82 Exchange gains 23 - 23 144 - 144 Gains on asset sales 1 - 1 2 - 2 Sundry income 58 - 58 93 - 93 215 - 215 369 - 369




2010 2009 Unrestricted Restricted Total Unrestricted Restricted Total funds funds funds funds funds funds £000 £000 £000 £000 £000 £000 Resources expended

9 Costs of generating funds Fundraising activities (22) (41) (63) (5) (23) (28) Licensing costs (12) - (12) (12) - (12) Indirect support costs (note 14) (65) - (65) (57) - (57) (99) (41) (140) (74) (23) (97)

10 Costs of charitable activities a Examinations Graded examinations (4,457) - (4,457) (4,245) - (4,245) Vocational Graded examinations (1,250) - (1,250) (934) - (934) Indirect support costs (note 14) (1,672) - (1,672) (1,528) - (1,528) (7,379) - (7,379) (6,707) - (6,707)

b Education and training fees University validated programmes (1,043) - (1,043) (918) - (918) RAD validated programmes (1,077) - (1,077) (1,011) - (1,011) Direct support costs (121) - (121) (170) - (170) Indirect support costs (note 14) (647) - (647) (591) - (591) (2,888) - (2,888) (2,690) - (2,690) CPD, training and other courses (848) - (848) (861) (29) (890) Summer schools (557) - (557) (513) - (513) Events and competitions (272) (21) (293) (145) - (145) Direct support costs (150) - (150) (138) - (138) Indirect support costs (note 14) (666) - (666) (686) - (686) (2,493) (21) (2,514) (2,343) (29) (2,372) Step into Dance project - (339) (339) - (290) (290) (5,381) (360) (5,741) (5,033) (319) (5,352) c Membership services Administration (445) - (445) (477) - (477) Publications (189) - (189) (182) - (182) Indirect support costs (note 14) (413) - (413) (344) - (344) (1,047) - (1,047) (1,003) - (1,003)

d Trading Direct costs (785) - (785) (986) - (986) Indirect support costs (note 14) (231) - (231) (214) - (214) (1,016)) - (1,016)) (1,200) - (1,200) Total costs of charitable activities (14,823) (360) (15,183) (13,943) (319) (14,262)




2010 2009 Unrestricted Restricted Total Unrestricted Restricted Total funds funds funds funds funds Funds £000 £000 £000 £000 £000 £000

11 Governance costs Audit and accountancy fees (150) (1) (151) (183) - (183) Trustee meetings (49) - (49) (34) - (34) Subsidiary company directors’ fees (4) - (4) (28) - (28) Legal services (25) - (25) (68) - (68) Indirect support costs (note 14) (567) - (567) (489) - (489) ( 795) (1) ( 796) ( 802) - ( 802)

12 Other resources expended BMN activity costs (88) - (88) (76) - (76) Indirect support costs (note 14) (26) (3) (29) (27) (2) (29) Taxation (301) - (301) (206) - (206) (415) (3) (418) (309) (2) (311)

13 Transfers between funds

There was an excess of expenditure over income for two Restricted Funds – the Step into Dance project (£33,105) and the Greek Panel’s Youth Ballet performance funded by the Greek Ministry of Education (£5,391) – which required a transfer of £38,496 from Unrestricted Funds to Restricted Funds.

14 Analysis of indirect support costs

Unrestricted funds 2010

Exams

Education

Training

Membership

Trading

Total Note 10

Total Note 11

Total Note 12

Total Note 9

£000 £000 £000 £000 £000 £000 £000 £000 £000 Salaries and pensions (953) (360) (370) (164) (118) (1,965) (344) (8) (17) General administration (381) (63) (122) (130) (46) (742) (168) (8) (5) Information technology (118) (76) (26) (67) (26) (313) (8) (5) (4) Financing charges (28) (18) (16) (8) (3) (73) (18) (1) (2) Depreciation (67) (47) (31) (22) (17) (184) (10) (2) (10) Rent and property (125) (83) (101) (22) (21) (352) (19) (2) (27) (1,672) (647) (666) (413) (231) (3,629) (567) (26) (65)

Unrestricted funds 2009 Salaries and pensions (862) (318) (364) (139) (96) (1,779) (329) (8) (16) General administration (405) (78) (128) (155) (70) (836) (113) (10) (6) Information technology (66) (64) (60) (5) (12) (207) (5) (4) (1) Financing charges (22) (18) (15) (9) (3) (67) (15) (1) (2) Depreciation (56) (39) (28) (17) (14) (154) (9) (2) (8) Rent and property (117) (74) (91) (19) (19) (320) (18) (2) (24) (1,528) (591) (686) (344) (214) (3,363) (489) (27) (57)

Restricted funds indirect support costs 2010 and 2009 are shown in note 12 only and represent financing and property costs.




15 Related party transactions

Four trustees (2009 - seven) who are examiners, tutors or mentors earned £11,325 (2009: £28,800 ) during the year in that capacity, as approved by the Charity Commission and in accordance with Articles 6.5, and 10 of the Charter. A further £5,000 (2009: £950) was paid as fees, and a £1,710 (2009: £1,566) in reimbursable expenses to one of these trustees for the development of syllabi. £12,606 (2009 - £13,085) was reimbursed to ten (2009 - ten) trustees for travel and accommodation for attending committee meetings, and where an examiner, tutor or mentor for examining and teaching on behalf of the Royal Academy of Dance.

The following related party transactions took place during the year:

Related party: Yvonne Gray (Trustee) as owner of Yvonne Gray Dance Studios Transaction: Hire of studios to the Royal Academy of Dance in Scotland for Vocational Graded examinations Cost of transaction: £1,170 (2009: £1,482) Amount due at 31 July 2010: Nil

Related party: Louise Murray (Trustee) as owner of The Monument Dance School Transaction: Hire of studios to the Royal Academy of Dance in Scotland for Vocational Graded examinations and courses Cost of transaction: £975 (2009: Nil) Amount due at 31 July 2010: Nil

Related party: Noriko Kobayashi (National Administrator – Japan) as owner of Kobayashi Ballet Studios Transaction: Hire of dance studios, office space and temporary staff to Royal Academy of Dance Japan for examinations, courses, summer schools and administration Cost of transaction: £62,040 (¥ 6,662,789) ( 2009 £44,746 (¥ 7,064,480)) Amount due at 31 July 2010: £8,858 (¥ 1,202,170) (2009 £10,950 ¥1,728,700)

Related party: Lala Salendu (National Administrator – Indonesia) as owner of dance studios Transaction: Hire of studios to Yayasan Royal Academy of Dance Indonesia for Vocational Graded examinations and courses Cost of transaction: £3,639 (Rupiah 51,000,000) ( 2009 £2,796 (Rupiah 46,000,000)) Amount due at 31 July 2010: £3,639 (Rupiah 51,000,000) ( 2009 £2,796 (Rupiah 46,000,000))

Royal Academy of Dance has taken advantage of the option conferred by Financial Reporting Standard No 8 Related Party Disclosures that allows it not to disclose transactions with subsidiaries.

16 Indemnity insurance

Indemnity insurance was included as part of the Academy's global policy to indemnify the Academy from loss arising

from the neglect or default of its trustees, employees or agents and to indemnify the trustees and other officers against the consequence of any neglect or default on their part, in accordance with Article 6(h) of the Charter. The cost for the year to 31 July 2010 was £3,115 (2009 - £3,200).

17 Costs of employees

The Academy employs 159 (2009: 146) administrative staff and 41 (2009: 44) commission-based staff worldwide, as well as contracting the services of examiners, teachers, tutors and musicians. Employment costs account for 52% (2009 – 49%) of total resources expended:




17 Costs of employees (continued)

2010 2009 Unrestricted Restricted Total Unrestricted Restricted Total funds funds funds funds funds funds £000 £000 £000 £000 £000 £000 Employee gross salaries (3,959) - (3,959) (3,675) - (3,675) Employee payroll taxes (539) - (539) (482) - (482) Pension contributions (261) - (261) (245) - (245) Processing staff (130) - (130) (172) - (172) Gross commission paid (580) - (580) (506) - (506) Payroll taxes (10) - (10) (3) - (3) Tutors, teachers and examiners (2,542) - (2,542) (2,111) - (2,111) Musicians (310) - (310) (265) - (265) Total employment costs (8,331) - (8,331) (7,459) - (7,459)

2010 2009 Number of Group employees earning : between £80,001 - £90,000 1 1 Pension contributions £10,224 £10,224 between £60,001- £70,000 4 1 Pension contributions £14,235 £7,427

18 Pension costs

The pension charge for the year to 31July 2010 was £261,297 (2009: £245,178). In the United Kingdom the Academy operates a defined contribution scheme with Aegon Scottish Equitable on behalf of its employees in the United Kingdom, and contributes to the University Superannuation Scheme and the Teacher’s Pension scheme on behalf of its academic employees; representing in total 53 employees (2009: 49). Elsewhere the Academy operates or contributes to a variety of defined contribution schemes, money purchase schemes or statutory schemes, representing 52 (2009: 50) employees in seven (2009: seven) countries. As of 31 July 2010 there were no prepaid or accrued pension contributions (2009: nil).

19 Taxation

The Academy is a charitable organisation and is entitled to UK tax exemptions available to charities. Accordingly, provision for UK taxation has only been made in respect of the profits of the Royal Academy of Dance Enterprises Limited. Subject to the availability of similar charitable exemption overseas, provision has been made for overseas taxation on the profits of overseas subsidiaries and branches.

20 Intangible assets

These consist of computer software and telephone subscription rights of subsidiary companies that are written off over a number of years.




21 Tangible fixed assets held for charitable use

Freehold Furniture land and and office Computer Motor buildings equipment equipment vehicles Total Group £000 £000 £000 £000 £000 Cost or Valuation At 1 August 2009 6,132 483 696 22 7,333 Revaluation 849 - - - 849 Exchange differences 134 12 23 1 170 Additions 5 36 157 - 198 Disposals - - (6) - (6) At 31 July 2010 7,120 531 870 23 8,544 Accumulated depreciation At 1August 2009 2 342 496 14 854 Revaluation (36) - - - (36) Exchange differences - 10 9 - 19 Charge for the year 36 39 133 3 211 Eliminated on disposals - - (6) - (6) At 31 July 2010 2 391 632 17 1,042 Net book value At 31 July 2010 7,118 140 238 6 7,502 At 31 July 2009 6,130 141 200 8 6,479 Charity £000 £000 £000 £000 £000 Cost or Valuation At 1 August 2009 5,992 445 891 11 7,339 Revaluation 849 - - - 849 Exchange differences 115 13 23 1 152 Additions - 33 157 - 190 Disposals - - (6) - (6) At 31 July 2010 6,956 491 1,065 12 8,524 Accumulated depreciation At 1 August 2009 - 320 699 4 1,023 Revaluation (36) - - - (36) Exchange differences - 10 10 - 20 Charge for the year 36 35 128 3 202 Eliminated on disposals - - (2) - (2) At 31 July 2010 - 365 835 7 1,207 Net book value At 31 July 2010 6,956 126 230 5 7,317 At 31 July 2009 5,992 125 192 7 6,316




21 Tangible fixed assets held for charitable use (continued) There are no assets held under finance leases. £10,330 excluding VAT has been authorised and contracted for the remaining balance of Phase One of the global database development. £100,000 excluding VAT has been authorised but not yet contracted at 31 July 2010 for Phase Two of the development of a worldwide integrated database.

The freehold properties were valued on 31 July 2010 in accordance with the requirements of the RICS Valuation Standards or their equivalent and FRS15, and were valued to existing use value assuming the property would be sold as part of the continuing business. There was no change in the valuation of the South African property, but the properties in the United Kingdom and Australia were valued at £5.8M and A$2M respectively. The freehold properties are valued annually, the last full valuation having taken place at 31 July 2009.

The current valuations, after amortisation charges and exchange gains arising out of the translation of Group Freehold properties at the end of the financial year are:

Value Charge Additions Increase Value Net at 1 August for the to in at 31 July Historical 2009 year freehold valuation 2010 cost United Kingdom £ 5,240,000 (36,401) - 596,401 5,800,000 1,909,520 Australia A$ 1,500,000 - - 500,000 2,000,000 470,000 South Africa Rand 1,800,000 - 60,438 - 1,860,438 653,770

Value Movement Charge Additions Increase Value at 1 August in for the to in at 31 July 2009 exchange year freehold valuation 2010 £ £ £ £ £ £ United Kingdom 5,240,000 - (36,401) - 596,401 5,800,000 Australia 752,181 114,871 - - 289,017 1,156,069 South Africa 138,507 18,856 - 5,284 - 162,647 Total 6,130,688 133,727 (36,401) 5,284 885,418 7,118,716

The external Valuers, who belong to the independent firms listed below, valued the properties in accordance with the requirements of the RICS Valuation Standards or their equivalent and FRS15. The Valuer’s opinion of value was primarily derived using comparable recent market transactions on arm’s length terms.

Property in London, United Kingdom Daniel Watney, Chartered Surveyors Property in Sydney, Australia Anthony St Leon, Egan National Valuers (NSW) Property in Johannesburg, South Africa Lamula Loss Adjustors




Group Charity 2010 2009 2010 2009 £000 £000 £000 £000

22 Investments Quoted investments Market value at 1 August 31 26 24 20 Purchases during the year 3 3 3 3 Disposals during the year (7) - (7) - Exchange differences - 1 - 1 Net realised gains 2 1 2 - Market value at 31 July 29 31 22 24 Historical cost at 31 July 21 25 13 18 Investment in subsidiaries Balance at 1 August - - 57 54 Additions - - 27 - Exchange differences - - (3) 4 As at 31 July - - 81 58 Total investments at 31 July 29 31 103 82

Group Charity 2010 2009 2010 2009 £000 £000 £000 £000 Quoted investments Held in the United Kingdom 22 21 22 24 Held outside the United Kingdom 7 10 - -

All quoted investments are held within restricted funds, are listed on a recognised stock exchange, and are valued at market value at the year-end.

Investments in subsidiaries The Royal Academy of Dance holds in trust 100% of the issued share capitals of Royal Academy of Dance S/C Ltda., a company registered in Brazil, and Royal Academy of Dance de Mexico AC, a company registered in Mexico. The charity has effective control over a building fund in South Africa which is administered by the Royal Academy of Dance, an association incorporated under s21 of the Republic of South Africa’s Companies Act, and Yayasan Royal Academy of Dance Indonesia, a non-profit foundation, based in Indonesia. The results of these entities are included in the Group’s results as long as the Academy continues to maintain a branch in South Africa, and operations in Indonesia. RAD Dancing (Malaysia) Sdn. Bhd. is a wholly owned subsidiary of Royal Academy of Dance Singapore Pte Ltd. The charity owns 100% of the issued capital of the subsidiary companies listed on page 34, whose aims and objectives mirror those of the Academy.




22 Investments (continued) Subsidiaries Country of

incorporation Registration number % of issued

share capital Cost £000

Net Worth £000

Royal Academy of Dance S/C Ltda Brazil CNP J2790864/001 Held in trust - 64 Royal Academy of Dance gGmbh Germany HRB 103317 100% 67 (58) Yayasan Royal Academy of Dance Indonesia Indonesia Yayasan No 138 100% control - 83 Royal Academy of Dance Srl Italy REATN174567 99% 8 144 Royal Academy of Dance Asbl Luxembourg No 2000 61 02892 100% 3 26 RAD Dancing (Malaysia) Sdn Bhd Malaysia No 282399X 100% - 181 Royal Academy of Dance de Mexico AC Mexico No 1513452 Held in trust - 86 Royal Academy of Dance Singapore Pte Ltd Singapore No 02211/1988-M 100% - 251 Royal Academy of Dance South Africa 1990/004233/08 100% control - 139 Royal Academy of Dance SL Spain CIF No B59915330 100% 3 69 Royal Academy of Dance Enterprises Ltd Great Britain 2773495 100% - 4 Balance at 31 July 81 989

Group Charity 2010 2009 2010 2009 £000 £000 £000 £000

23 Stocks Finished goods and goods for resale 280 265 101 99 Work in progress 65 6 - - Balance at 31 July 345 271 101 99

24 Debtors Trade debtors 369 204 286 129 Amounts due from subsidiaries - - 500 481 Other debtors 208 183 98 71 Prepayments and accrued income 483 380 436 309 Balance at 31 July 1,060 767 1,320 990


ROYAL AC

35

ADEMY OF DANCE

Financial Statements 2010

NOTES to the ACCOUNTS Year ended 31 July 2010 Notes

Group Charity 2010 2009 2010 2009 £000 £000 £000 £000

25 Creditors : amounts falling due within one year Bank overdrafts (232) (556) (62) (420) Bank loans (33) (32) (30) (30) Trade creditors (1,377) (1,396) (1,065) (1,205) Taxation and social security (261) (218) (128) (105) Accruals and deferred income (2,934) (2,429) (2,390) (1,999) Balance at 31 July (4,837) (4,631) (3,675) (3,759)

26 Creditors : amounts falling due after more than one year Provision for long-service award (10) (11) - (3) Bank loans (152) (178) (147) (174) Balance at 31 July (162) (189) (147) (177)

Bank overdrafts £170,499 (2009: £135,297) is secured by a mortgage debenture over the stocks held by Royal Academy of Dance Enterprises Limited and attracts interest at 3.75% over base rate (2009: 1.25%). The company has access to an overdraft facility up to £200,000 which is utilised at the end of each financial year in order to gift aid its profits to the Royal Academy of Dance. £61,846 (2009: £420,020) is offset for grouping purposes against other balances held by the Royal Academy of Dance in the United Kingdom and attracts interest at 2% on so much as is covered by cleared credit balances, and 1.6% over base rate (2009: 1.25%) on the remainder of it within the limit. It is subject to normal terms and conditions including repayment on demand. As at 31 July the net balance of all funds held by the Royal Academy of Dance in the United Kingdom was £625,379 in credit (2009: £185,381 in credit) against a total facility of £700,000. A short term bank loan taken out by Royal Academy of Dance S/C Ltda. In 2009 (£515) was repaid in August 2010.

Bank loans A loan of £300,000 was taken out by the Royal Academy of Dance, London in 2003 from HSBC Bank Plc for the purposes of refinancing the Academy’s overdraft. This loan attracts interest at 1.25% over base rate and is repayable over 15 years, ending April 2018. £29,984 is payable within one year, with the balance of £147,044 repayable over the remaining life of the loan. The loan is secured on the freehold property at 36 Battersea Square, London SW11 3RA. A loan of £7,338 (2009: £6,967) taken out by the s21 company in South Africa in order to complete the purchase of its building is outstanding. This loan attracts interest at 16.75% per annum and is repayable over a maximum of 20 years ending in 2015 and is subject to normal banking terms and conditions. £2,607 is due within one year; with the balance of £4,731 repayable over the remaining life of the loan. The loan is secured on the freehold property known as Erf 29, Bramley, Johannesburg.



27 Movement in restricted funds Revalued Transfer Gains on Balance at Movement balance at Movement in resources Net from investments Balance at 1st August in 1st August Incoming Outgoing Movement Unrestricted realised and 31st July 2009 exchange 2009 funds unrealised 2010 Project Funds £000 £000 £000 £000 £000 £000 £000 £000 £000 Step into Dance programme UK - - - 306 (339) (33) 33 - - Designated Funds Genée Legacy Funds Singapore - - - 22 - 22 - - 22 Genée Legacy Funds UK - - - 28 - 28 - - 28 Restricted Funds Genéechallenge UK - - - 27 - 27 - - 27 Scholarship / bursary funds UK 493 - 493 9 (15) (6) - 7 494 Boys Only! funds UK 52 - 52 6 (3) 3 - - 55 Yorkshire Youth Dance UK 14 - 14 5 (7) (2) - - 12 Iris Truscott fund UK 21 - 21 1 (1) - - - 21 Regional Scholarship funds UK 23 - 23 16 (16) - - - 23 Youth Ballet Greece 7 - 7 8 (20) (12) 5 - - Scholarship fund Israel 1 - 1 - - - - - 1 Total Charity 611 - 611 428 (401) 27 38 7 683 Building fund S Africa 6 1 7 7 (4) 3 - (2) 8 Total Group 617 1 618 435 (405) 30 38 5 691 Total Group – prior year 597 - 597 74 (54) 20 - - 617


ROYA

37

NOTES to the ACCOUNTS Year ended 31July 2010 Project Funds Step into Dance is a fully inclufund it. The prog DesignaThe Trustees agLondon in recognition of the efforts of the teachers in Singapore RestricteRestricted funds are funds arising out of donations, grants, Genéechallenge: International Ballet Competition 2010 to be held in Access / bursary funds: (2009 - £1,098). Boys Oreasons. Two workshops were held in the year (2009 - 2). Yorkshire Youth Dance Theatre: Iris Truscott fundthe Trustees agreed to fund a CBTS student wishing to access a Regional Schola

L ACADEMY OF DANCE

Financial Statements 2010

sive, community dance programme, a partnership between the Royal Academy of Dance who lead the programme and The Jack Petchey Foundation who ramme ran in 100 secondary schools over 13 London boroughs.

ted Funds reed to designate the equivalent of the overhead costs of the Singapore Genée International Ballet Competition 2009 as Genée Legacy Funds split between Singapore and

in supporting the event. The Funds will be used to assist students in Singapore, and the Genée more broadly.

d Funds legacies and awards given or raised for specific purposes:

A series of events held’s by Regional Advisory Committees in the English Regions, Scotland and Ireland; and Head Office raising money to support the London Genée November 2010.

To provide grants to students attending teacher education and notation programmes at the Academy. Awards totalling £15,675 were made in this financial year

nly! funds: Funds raised at a joint RAD/RBS Billy Elliot preview Gala to provide opportunities for male students whose access to dance is limited for economic, geographic or physical

A fund administered by the Northern England and Yorkshire Regional Advisory Committee to provide students with the opportunity to perform on the stage.

: A trust deed registered with the Charity Commissioners to award bursaries to students on the BADE or CBTS programmes wishing to further their training. During the year higher education programme of the Royal Academy of Dance, and a BADE student.

rship funds: These funds are raised and administered by Regional Advisory Committees in England and Wales to provide scholarships for students to further their training.


NOTES to the ACCOUNTS Year ended 31July 2010 Notes 28 Movement in unrestricted funds Balance Balance At Net Other at 1 August Exchange incoming recognised 31 July 2009 differences resources losses 2010 £000 £000 £000 £000 £000 Charity Accumulated funds 2,111 137 810 - 3,058 Revaluation reserve 4,754 85 - 885 5,724 6,865 222 810 885 8,782 Group Accumulated funds 2,855 201 881 - 3,937 Revaluation reserve 4,844 97 - 885 5,826 7,699 298 881 885 9,763

The net movement in funds includes unrealised losses on investment in land and building through revaluation at current prices. These represent a decrease in the value of funds held rather than a decrease in funds.

Unrestricted Restricted Total funds funds funds £000 £000 £000

29 Analysis of group net assets between funds Tangible fixed assets 7,502 - 7,502 Intangible fixed assets and investments 4 29 33 Current assets 7,256 662 7,918 Current liabilities (4,837) - (4,837) Amounts falling due after more than one year (162) - (162) Total net assets 9,763 691 10,454

30 Parent Charity

The parent charity in the United Kingdom had incoming resources after taxation, management charges but before net

dividends, capital remittances, and transfers between funds of £168,813 (2009 £179,549). This is before Consolidation adjustments which are included in Note 31:

2010 2009 Net Net Incoming Resources Incoming Incoming Resources Incoming resources expended resources resources expended resources

£000 £000 £000 £000 £000 £000 Unrestricted Funds 8,426 (8,285) 141 8,137 (7,976) 161 Restricted Funds 428 (401) 27 361 (342) 19 For the year to 31 July 8,854 (8,686) 168 8,498 (8,318) 180




31 Net incoming resources

Net incoming resources on the Group Consolidated Statement of Financial Activities represent the operating results of the Royal Academy of Dance and its branches and subsidiaries, which are shown below after taxation, management charges and consolidation adjustments but before net dividends, capital remittances and transfers between funds:

Unrestricted funds

2010 2009 Net Net Incoming Incoming Incoming Resources (outgoing) Incoming Resources (outgoing) resources expended resources resources expended resources

£000 £000 £000 £000 £000 £000 United Kingdom Group 7,136 (6,972) 164 7,096 (6,825) 271 Australia 1,880 (1,772) 108 1,620 (1,608) 12 Canada 1,133 (1,021) 112 953 (873) 80 Israel 29 (30) (1) 23 (27) (4) Japan 416 (374) 42 341 (314) 27 New Zealand 347 (350) (3) 314 (267) 47 Portugal 309 (255) 54 260 (218) 42 Southern Africa 395 (401) (6) 389 (376) 13 Thailand 110 (103) 7 123 (113) 10 United States of America 358 (338) 20 322 (369) (47) RAD Enterprises 1,058 (1,057) 1 1,197 (1,197) - RAD Brazil S/C Ltda 318 (235) 83 265 (256) 9 RAD Germany gGmbh 394 (400) (6) 363 (383) (20) Yayasan RAD Indonesia 211 (171) 40 126 (106) 20 Royal Academy of Dance Srl 1,024 (968) 56 1,009 (981) 28 RAD Dance asbl 97 (102) (5) 79 (67) 12 RAD Dancing (Malaysia) Sdn Bhd 392 (318) 74 314 (264) 50 RAD Mexico de AC 295 (274) 21 217 (184) 33 RAD Singapore Pte Ltd 682 (549) 133 363 (282) 81 Royal Academy of Dance SL 467 (442) 25 469 (418) 51 For the year to 31 July 17,051 (16,132) 919 15,843 (15,128) 715

Restricted funds

2010 2009 Net Net Incoming Resources incoming Incoming Resources incoming resources expended resources resources expended resources £000 £000 £000 £000 £000 £000

United Kingdom Group 428 (401) 27 361 (342) 19 Royal Academy of Dance s21 South Africa 7 (4) 3 3 (2) 1 For the year to 31 July 435 (405) 30 364 (344) 20



UK Group Representative Offices The results of the fifteen Representative offices below are included in the results of the United Kingdom to form the UK Group: China Villa 86 Xin Feng Cheng, 1500 Nong Kong Jiang Lu, Shanghai 200093 Cyprus 19 Vassa Kilianiou, 4771 Limassol Greece British Council, 17 Kolonaki Square, Athens 10673 Hong Kong Hong Kong Examination and Assessment Authority, 17 Tseuk Luk Street, San Po Kong, Kowloon Ireland Holly Lodge, Pidgeon House Lane, Julianstown, Co. Meath Caribbean PO Box 1433, Constant Spring Post Office, Kingston 8, Jamaica Malta 8 Guze Ellul Mercer Street, Sliema SLM1281 Philippines British Council, F. Ortigas Jn Road, Ortigas Center, Pasig City 1605 Scandinavia Tjernes, 1890 Rakkestad, Norway South Korea 1703 Artnouveau Palace, 7-1 Songpa Dong, Songpa Gu, Seoul 138-848 Sri Lanka British Council, 49 Alfred House Gardens, Colombo 0030 Switzerland Royal Academy of Dance gGmbh, Waldenserstrasse 2-4, 10551 Berlin Taiwan 5f, No 122, Sect 7 Chung Shan N. Road, Taipei Turkey British Council, Maya Akar Center, No 100-101 Buyudere Cad, Esentepe, Istanbul UAE & Qatar British Council, Academic City, Dubai English Speaking College campus, PO Box 2002, Dubai Worldwide Group Branch Offices The results of the nine Branch companies below are consolidated with the results of the UK Group to form the Charity: Australia 20 Farrell Avenue, Darlinghurst, NSW 2010 Canada 1200 Sheppard Avenue East, Suite No 500, Toronto, Ontario M2K 2S5 Israel Hadekalim Street 79/6, Pardes-Hanna Japan Commerce Building 5f, 2-39-3 Mejiro, Toshima-Ku,Tokyo 171-0031 New Zealand Level 8 CMC Building, 89 Courtenay Place, Wellington Portugal Rua 4 Infantaria 86, 138 C/V Esq, 1350-241 Lisboa Southern Africa & Mauritius PO Box 200, Bramley 2018, Johannesburg, South Africa Thailand 121/12, Moo 10, Chiangmai-Hangdong Road, Tambon: Pae Dad, Ampur: Muang, Chiangmai 50100 United States 1412 17th St. Suite #259, Bakersfield, CA 93301 Subsidiary Offices The results of the eleven Subsidiary companies below are consolidated with the results of the Charity (UK Group and Branch Offices) to form the Worldwide Group: Benelux & France Royal Academy of Dance Asbl., 21 Cite Joseph Bech, L-6186 Gonderange, Luxembourg Germany Royal Academy of Dance gGmbh, Waldenserstrasse 2-4, 10551 Berlin Indonesia Yayasan Royal Academy of Dance Indonesia, Jl. Angur III / no:1 Cipete, Jakarta Selatan 12410 Italy Royal Academy of Dance Srl., Via Vannetti 12, 38100 Trento Malaysia RAD Dancing (Malaysia) Sdn Bhd., PO Box 8344 Kelana Jaya, 46788 Petaling Jaya, Selangor Mexico & Central America Royal Academy of Dance de Mexico AC, Amates 18 Fracc Alconfores, San Mateo, Naucalpan CP

53240, Mexico Singapore Royal Academy of Dance Singapore Pte Ltd., Farrer Road Post Office, PO Box 106, Singapore 912804 South Africa Royal Academy of Dance s21 Company, PO Box 200, Bramley 2018, Johannesburg South America Royal Academy of Dance S/C Ltda., Rua Duque De Caxis 83, 13930 000 Serra Negra-SP, Brazil Spain, Andorra & Gibraltar Royal Academy of Dance SL., Ventura i Gassol, 3, 5è-3a, 43203 Reus, Tarragona, Spain United Kingdom Royal Academy of Dance Enterprises Ltd., 36 Battersea Square, London SW11 3RA



Advisers UK Banker HSBC Bank Plc 31 Holborn Circus, London EC1N 2HR UK Solicitor Field Fisher Waterhouse 41 Vine Street, London EC3N 2AA UK and Group Auditor Deloitte LLP 2 New Street Square, London EC4A 3BZ Deloitte LLP and members of the Deloitte Touche Tohmatsu worldwide network audit the Group branches and subsidiaries with the exception of the following: Brazil Sussumo Hirakata Organizacao Contabil Liberty, Rua Mituto Mizumoto 56,

Liberdade, 01513 010 Sao Paulo-SP Canada Grant Thornton LLP 15 Allstate Parkway, Suite 200, Markham, Ontario L3R 5B4 Indonesia KAP Ekna Masni, Bustaman & Rekan Sentra Kramat B-18, JL Kramat Raya 7-9, Jakarta 10450 Israel Hannan Gabriel CPA 8 Hayod-Chef Street, Hod Hasharon 45200 Luxembourg Alexander J Davies Sarl 24 Rue Jean L’Aveugle, Luxembourg L-1148

Portugal CERB Beloura Office Park, Rua do Centro Empresarial, Edifício

EE06 - Escritório 12, Quinta da Beloura, 2710-444 Sintra Spain Asesoria Berzosa DonosoCotres 85, 28015 Madrid Thailand KT&R Business Consultant Co Ltd 59/1 Sukhumvit 64 Bangchak, Prakanong, Bangkok 10260

United States Wren Kelly CPA LLP PO Box 12290, Bakersfield, CA 93389-2290

During the year Deloitte GmbH in Germany were appointed as auditors having previously provided an accounting and assurance role.



Management Chief Executive National Administrators Luke Rittner Australia: Bronwyn Watkins Director of Finance Benelux & France: Jacqueline Spence Richard Thom BA (Hons) FCA Brazil and South America: Maria do Carmo de Kenny Artistic Director Canada: Brenda Stykes (Acting) Lynn Wallis FISTD Caribbean: Diane Bernard Director of Education China Representative Office: Tina Chen Professor Joan White MA BA Cert Ed FRSA China, Hong Kong SAR: Mandy Hau Director of Marketing, Communication Cyprus: George Shantos and Membership Germany, Austria & Switzerland: Horst Vollmer Melanie Murphy Dip IPR MICPR Greece: Vlasis Klitsiotis Director of Examinations Indonesia: Lala Salendu Andrew McBirnie BA MMus PhD LTCL Ireland: Beverley Dinsmore Israel: Maya Shoham Senior Staff Italy: Manuela de Luca (Local Manager) Benesh Director: Liz Cunliffe Japan: Noriko Kobayashi Associate Dean: Michelle Groves Malaysia: Zafriah Ahmad Chair of the Panel of Examiners: Paula Hunt Malta: Sandra Mifsud Financial Controller: Richard Slatford Mexico & Central America: Julietta Navarro Membership Manager: Gemma Frayne New Zealand: Janet Taylor Examinations Manager: Gillian Sowerby Scandinavia: Catherine Solaas Examinations QA Manager: Lynne Bradley Philippines: Lauren Ann Pascua FoE Head of Programme Research & Development: Portugal: Margarida Sa Fialho Carol Martin Singapore: Mona Lim FoE QA Manager: Alison Chapman Southern Africa: Olivia Lume FoE Registrar: Evelyn Treiber South Korea: Hyun Joo Ham FoE Business Manager: Suzie Lorimer Spain: Maria José Antón CPD Manager: Mia Romanus Sri Lanka: Ranmali Mirchandani Training Manager: Monique Ogier Taiwan: Shu-Yu Lin Music Development Manager: Jonathan Still Thailand: Glenn van der Hoff Head of Human Resources: Debbie Bolton Turkey: Merve Kalyoncu Head of Facilities: Travis Bedford UAE: Sonali Deodhar Head of Trading: Sue Bacchus USA: Patti Ashby Head of IT: Neil Sowden Finance Manager: Ray Bolton Press and Marketing Manager: Vassiliki Spyropoulou Librarian: Rebecca Lacey Head Office Royal Academy of Dance 36 Battersea Square London SW11 3RA England T +44 (0)20 7326 8000 F +44 (0)20 7924 3129 www.rad.org.ukwww.radacadabra.orgwww.radenterprises.co.uk www.benesh.org


financial report and statements for the year ended … bintley cbe karen berry bsc ba(hons) adv tch...

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