2022-08-31-accounts

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

Charity Number: 1057744 Charity Number: SC038299

Royal College of Paediatrics and Child Health Report and financial statements for the year ended 31 August 2022

Published December 2022

RCPCH Trustees' Annual Report for the year ended 31 August 2022

Table of contents
Introduction	3
Achievements and performance	4
Impact...............................................................................................................................................................................................	4
Volunteers.................................................................................................................................................................................	9
Fundraising.............................................................................................................................................................................	9
Principal risks and uncertainties...............................................................................................................................	9
Plans for future periods	11
Objectives for 2022/23.......................................................................................................................................................	11
Financial review	12
Financial overview................................................................................................................................................................	12
Investment policy and objectives..............................................................................................................................	14
Premises......................................................................................................................................................................................	14
Reserves policy........................................................................................................................................................................14
Donations disclosure..........................................................................................................................................................	15
Pay transparency and equality....................................................................................................................................	15
Objects and activities	16
Purposes and aims..............................................................................................................................................................	16
Vision, mission and values..............................................................................................................................................	16
Structure, governance and management..........................................................................................................	16
Appointment, induction and training of trustees.........................................................................................	18
Reference and administrative information	19
Statement of trustees' responsibilities	20
Independent auditor’s report to the trustees of the Royal College of Paediatrics
and Child Health	22
RCPCH fnancial statements and notes for the year ending 31 August 2022	27

RCPCH Trustees' Annual Report for the year ended 31 August 2022

Introduction

2022 has seen a new focus at the RCPCH, as we adjust to the ‘new normal’ in the way we live and work today. Across the College we have worked to align our programming and advocacy work in response to these new ways of working. We have made investments in staff recruitment and retention and digital updates to bolster our online offerings to support our member engagement activities. We have further developed the Progress+ curriculum to provide more flexible and targeted training. Our Annual Conference in June saw record attendance with over 2,000 attendees as we returned to a face-to-face event whilst also welcoming a virtual audience. The energy and enthusiasm of our members at conference was invigorating and a welcome reminder of why our work is so important.

We have completed the first year of our 2021-2024 strategy, and have been able to apply our overarching strategic aims to meet the significant challenges the last year has brought, including those relating to our workforce and the cost-of-living crisis.

Our 2022 Impact Report highlights some of the key outcomes of our research projects and member-focused programmes. It emphasises our mission to amplify the voices of children and young people in health matters by serving as their advocates. Our 2022 Annual Review to be published in Spring 2023 will offer a broader view of life at the College through story-telling and a visual narrative.

Through the following pages the Trustees of the College present their report and the audited financial statements for the year ending 31 August 2022.

We have maintained a strong financial performance, against a challenging economic environment. This has allowed us to continue and further develop core activities fundamental to the College and will allow us to invest in new areas of work over the years to come. The Trustees are confident that the College is financially viable for the next 12-24 months following the review of the 2022/23 budget, multi-year budgeting assumptions and future proposed schedules of investment. This view is further strengthened by the College's strategic focus on income diversification to generate additional funds to strengthen our core delivery and fund future areas of growth.

We hope this report provides a clear narrative to describe our work over the past twelve months and show its impact. It describes how our resources have been used to meet the charitable objectives of the College and it reflects our stewardship and the due diligence behind our decision-making.

Reference and administrative information set out on page 19 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Liz Marder Treasurer

Joanne Shaw Chair of Trustees

RCPCH Trustees' Annual Report for the year ended 31 August 2022

Achievements and performance

Impact

As an organisation whose impact cannot be measured by numbers alone, the College has sought to identify meaningful numbers that illustrate progress across some of our key areas of priority. Last year we continued to track our six Key Performance Indicators (KPIs) to learn more about our long-term impact across child health.

The KPIs for 2021-22 are as follows:

The number of people that attend our online and face-to-face educational training courses	Target: 1,395 Achieved: 2,745 By moving our courses online we’ve exceeded our 1395 attendees in 2020/21 and achieved our target.	Met or exceded target
Our Unique Personal Engagement (UPE) score, including online engagement	Target: 25% Achieved: 12% A less accurate methodology in prior year calculation meant duplicate counting took place and the target set was based on artifcially elevated data. *	Missed by over 5% of target
Number of members	Target: 4% growth Achieved: 4% growth, from 20,479 to 21,306 By continuing to support our members during the recovery following the pandemic we have achieved our ambitious growth target.	Met or exceded target
Number of members worldwide taking our examinations	Target: 7,639 Achieved: 8,552 We’ve exceeded both our target and the 8232 examinations sat in 2020-21, demonstrating the tremendous work of the examinations teams and examiners to support our members across the world.	Met or exceded target
The percentage of overall College income (across all funds) that comes from sources other than membership, exams and training fees	Target: 29.6% Achieved: 30.8% Our income diversifcation has grown to 30.8% from 16.1% in 2019-20, due to the return of face-to-face activity, including annual conference.	Met or exceded target
Our staff engagement score, as measured through our all-staff surveys	Target: 7.3 (proxy of a 75% completion rate) Achieved: 71% completion rate Peakon and Investors in People use different criterion to measure engagement. For the purposes of this report a proxy of staff completion rates of the survey shows comparable data. As part of the Investors in People review, the College achieved Investors in People status.	Missed by under 5% of target

*We will be considering moving to other metrics to monitor our engagement over the forthcoming year.

RCPCH Trustees' Annual Report for the year ended 31 August 2022

Our 2021-24 strategy built on what we had learnt during the pandemic, using new ways of working and interacting, and robustly addressing our workforce needs. The last year has continued to place ever greater burdens on child health professionals and our strategy makes the support for lifelong careers in child health a central pillar. In our commitment to capitalise on what we have learnt, the strategy also brings the crucial role of digital innovation in our future ways of working to the fore.

The College referred to the advice contained in the Charity Commission's guidance on public benefit when reviewing and planning its future activities and identified the key strategic areas to support the College over the next three years as follows:

1. To harness knowledge, data and intelligence to improve the quality of care for children and young people.

2. To equip members with the skills and knowledge they need through training and assessment.

3 . To speak with confidence and authority on the health issues that matter to children and young people, and on policies that speak to our values and our mission.

4. To develop our communities, supporting members throughout their careers and attracting new recruits, ensuring the College is financially sustainable and well-resourced.

Improving quality and care

Standards and quality

The College continued to carry out a wide range of research and evidence programmes and was recommissioned to deliver three national clinical audits to inform the development of policy, service delivery, clinical standards, patient information and quality improvement initiatives to improve child health and support the paediatric workforce.

Our Invited Review service is aiming to restart offering reviews in early 2023, having been paused due to the impacts of the pandemic. The National Diabetes Quality Programme have completed over 110 reviews and delivered significant impacts in the services they have supported.

Digital transformation

With the appointment of a Chief Digital Officer, the College has begun its work to harness data as set out within the current strategy. Internally, work has begun to modernise systems and structures, including a significant investment in a new finance system that will have impact across the organisation. Digital work focused on our members, children and young people has ranged from app development, website improvement, audit platform creation and establishing the next steps for the digital growth charts. Working alongside stakeholders like NHS Digital has been pivotal in beginning this work to ensure the College is utilising its expertise in the most impactful areas.

RCPCH Trustees' Annual Report for the year ended 31 August 2022

Research and evidence

Two large programmes of work launched with newly appointed specialist staff resources to deliver them. The first was the RCPCH Genomics Programme - a long-term programme to support RCPCH members to improve child health outcomes by embedding genomic approaches. The second was the Physical Signs of Child Sexual Abuse - a resource which provides evidencebased recommendations when examining and interpreting physical signs of sexual abuse.

This year we have made significant progress in influencing the need for increased investment into national structures for child health research. Practical actions will be taken forward with the National Institute of Health Research to advance change.

This year the team published the clinical guideline for the screening of retinopathy in prematurity. This was the culmination of over two years of work to collate, review and synthesise the latest research evidence into recommendations for practice.

The British Paediatric Surveillance Unit launched a new data collection platform and has continued to host and support innovative studies into rare and infectious diseases affecting children and young people covering a range of conditions such as acute hepatitis, avoidance restrictive food intake disorder and neonatal stroke.

Building skills and knowledge

Professional training and examinations

Online examinations have continued, with the online invigilation option opening up opportunities to take the theory examinations in countries without test centres. The UK clinical examination returned in June 2022 to face-to-face for the first time since the pandemic. Overseas clinical examinations have now reopened in almost all countries, with India and Nepal restarting examinations in September 2022. Currently we are unable to reopen examinations in Myanmar and Sudan due to civil unrest. The START assessment has transferred from Practique to the newer and more user-friendly Osler system. Progress+ communications, events and guidance continues to be produced by the Implementation Working Group in the penultimate year before transition begins.

Training courses have continued to be delivered throughout the pandemic. The newly constituted Education and Learning Board has overseen lessons learned from running courses online and begun the redevelopment of course portfolios. 80% of our delegates continue to state that they can somewhat or significantly apply new learning to practice as a result of the courses they attended. RCPCH Learning, the College’s new e-learning website, launched in July 2022.

RCPCH Trustees' Annual Report for the year ended 31 August 2022

Humanitarian work

Over the last year, we have built on our breadth of international experience and programme presence to offer critical support to humanitarian crises. In Myanmar, following the military coup, we continued to provide life-saving support, remotely, to nurses and doctors across the country with over 30,000 views of our clinical skills videos.

In Ukraine, following the invasion, we convened an advisory group of Ukrainian and UK paediatric clinicians to design and deliver simple instructional videos and training materials supporting continuation of basic perinatal and paediatric care by clinicians and non-clinicians operating in highly insecure environments. We also brokered a new exchange between Ukrainian trauma surgeons in Kharkiv and the Royal College of Surgeons of England. In Lebanon, with collapsing political and economic institutions, we have initiated a new legacyfunded programme to support better, more joined up care for children with cognitive disabilities in the Palestinian refugee camp communities.

Influencing others

Policy and advocacy

Whilst we continued our policy work on COVID-19 and worked to support policy change at a local and national level, one of our most significant interventions during the year was our work to influence the Health and Care Act 2022. The early stages of the Bill included only a handful of mentions of children but through lobbying and providing expert evidence to parliamentarians to propose amendments, we secured commitments that put children and young people at the heart of the statutory framework.

Other highlights from our policy and advocacy work included: publishing new guidance on seeking and providing external second opinions in paediatrics; publishing the safeguarding guidance for early medical abortions; and publishing an updated vaping position.

The voice of children and young people

The involvement of children and young people (CYP) continued to be of vital importance in all work undertaken by the College. Since Sept 2021, 760 children, young people and parent/ carers have been involved with RCPCH, volunteering 1570 hours on several different projects and programmes. 1325 health professionals have also taken part in recipes for engagement sessions and our Safer Working Practices training has been taken by 52 members of staff.

Equality, Diversity, and Inclusion (EDI)

In March 2022, the first update on the EDI goals of the College was shared with members alongside an enhanced data snapshot providing transparency on our progress to date. Our reciprocal mentoring pilot scheme matched Officers of the College with members of the EDI Member Reference Group. The pairs underwent an induction meeting in February 2022 and met on a regular basis. Through the pilot, we hope to further refine what the aim of a wider reciprocal mentoring scheme could be and identify the best next steps for the College in October 2022.

We also launched a scheme to support clinicians with barriers they might face to working with the College, including a pilot fund to cover care costs of those volunteering their time. A podcast featuring voices from our Member Reference Group and a session at annual conference focused on accessibility ensured our work continued to reach our members.

RCPCH Trustees' Annual Report for the year ended 31 August 2022

Climate change action

It has been a busy and productive year for the College’s Climate Change Working Group. In October 2021, we launched our first major output ahead of COP26, a position statement on “The impact of climate change on global child health”. In January 2022 we published our climate change action plan, which set out our three-year ambitions for this work and a series of 38 specific actions to be taken forward across our five workstreams. Our working group of 80 dedicated members have been working hard to progress these, and we now have a range of resources for members available on our website.

Elsewhere, we have made significant progress in establishing ourselves as a leader on climate change and health action and have been invited to speak at several national and international events. We also took part in an independent survey of medical royal colleges and professional associations and we were delighted to receive the top score, in recognition of the impact we have achieved in our first year.

Developing our community

Member representation and support

Today the College supports over 21,300 members across the world. In 2021/22 we retained 96% of our membership and attracted 800 new members, achieving our growth target for the year. Listening and supporting our members remains at the heart of everything we do. Our activities have ensured that our members are represented to policymakers in governments and the NHS to shape policy and advance paediatrics and child health.

Council, our representative body of our members, underwent a review during the year and several recommendations to improve ways of working and representation were approved and will be taken forward.

Lifelong career support

Following the successful completion of the Dinwoodie Phase 1 project which undertook a comprehensive analysis of historic data on attrition in the paediatric medical workforce, we successfully bid for and achieved funding for a larger Phase 2. Formally named ‘Thrive Paediatrics’, this two-year project will take forward two streams of lifelong careers activity. The first is the production and peer review of best practice guidelines for sustainable working. The second is piloting a member-owned regional community. Following a restructure, role components from across the College have been brought together to create a two-person careers team under an Associate Director for Careers and Workforce.

Finance and governance

Financial performance for the 2021/22 financial year is positive, resulting in a general funds surplus that will not only ensure the College meets its reserves policy this year, but also allow for the necessary investment in 2022/23 to drive delivery of the College strategy on a financially sustainable footing.

RCPCH Trustees' Annual Report for the year ended 31 August 2022

Volunteers

The College is reliant on a considerable number of volunteers, estimated to be over 4000, to achieve its objectives and we are incredibly grateful and indebted to the many individuals who serve in many capacities. This includes the children, young people, parents and carers that form our RCPCH&Us network, the many clinicians that sit on our over seventy committees and those members that act as UK and overseas examiners, tutors, regional advisers or assessors.

“I jumped at the opportunity to be involved in a role in which children’s public health is placed more at the forefront of my local area policies."

Dr Deji Jaiyesimi, Trainee paediatrician and RCPCH Ambassador

These volunteers provide many hours’ work towards achieving the charitable objects of the College without remuneration, providing feedback, professional advice and expertise – either clinical or health service related.

Fundraising

Fundraising at the College remains a crucial step in ensuring a diverse income portfolio and during the year, £276k of fundraising income was achieved.

A significant proportion of the fundraising income was the result of legacy donations from members of the College to support wider College activity during the year. Ensuring clear signposting and a clear supporter journey for future pledges of legacy income is a fundraising priority.

Trust and foundation fundraising continue to be a major focus. The team successfully secured funding to support e-learning for clinicians involved in research, and for our ‘Thrive Paediatrics’ programme which aims to design and deliver targeted interventions for specific groups of paediatricians to nurture resilience, leadership and wellbeing. The College also received funds from an inspired group of NHS Consultants who took part in the Ride London-Essex cycling festival to successfully fundraise for the RCPCH’s programme on the impact of climate change on child health.

In all fundraising activity, the College abides by all relevant regulation and codes and no fundraising complaints were received throughout the year. The College does not undertake fundraising through any third-party organisations.

Principal risks and uncertainties

The Board of Trustees has agreed processes by which it reviews, identifies, and assesses major risks, ensuring that controls are put in place where necessary to mitigate those risks. This area of work has been a particular area of focus for the Board since it was first constituted in November 2016. The Board delegates elements of work on risk to the Audit, Finance and Risk Committee, to the Executive Committee, and to the Senior Management Team. Building on the progress described in recent years’ reports about managing risk, and taking into account best practice in the sector, a strategic and operational risk register are maintained by the organisation, complemented by additional registers for extensive projects or emerging issues.

RCPCH Trustees' Annual Report for the year ended 31 August 2022

The major risks included in the strategic and operational risk registers across the course of the year to 31 August 2022 cover the impact of COVID-19, capacity of both staff and clinicians, historic invited reviews and the visibility of child health. Further detail on the risks to the College and mitigation that we have put in place to reduce those risks is as follows:

Risks	Mitigation
The potential fnancial impacts of the COVID-19 pandemic, both on individual activities (such as exams and conferences) and on the College’s agreed Reserves Policy and the effects of the COVID-19 pandemic on the workload and wellbeing of College members, volunteers and staff.	Regular governance oversight, active engagement with the health departments in the UK nations and other relevant bodies.
Capacity issues across the College impact on the ability to deliver key work - particularly support of clinical examinations and delivery of international exams. This also includes our reliance on volunteers to advise and support so many activities at a time of considerable service pressure.	Frequent discussions at Senior Management Team meetings to review capacity and Board of Trustees approval for increased support within teams supporting exams delivery. Ongoing plans to develop decision making tools to support capacity limits.
Historical invited reviews undertaken by the College.	Clear internal lines of communication. Regular Trustee and Senior Offcer oversight of issues as they are highlighted. Legal expertise sought when required. External review of invited reviews service.
That child health will not be seen as a suffciently important priority by those responsible for setting UK health policy.	Working with, informing and infuencing government and Arm’s Length Bodies (ALBs). Ongoing policy and communications activity about the work of the College to ensure the importance of child health is highlighted.

Risk management is flagged to new trustees during their induction process as one of their major responsibilities. The staff leads for the risk management process are the CEO and the Chief of Staff. The Board has adopted a formal Risk Policy setting out responsibilities in this area and reviewed this policy during the reporting period.

The operational risk register is maintained by the Chief of Staff and reviewed monthly by the Senior Management Team (SMT). It consists of risks that have arisen in the course of the College’s everyday work that are of significance for the organisation. Each risk is assigned an SMT owner, who is responsible for implementing appropriate mitigation for the risk. Operational risk register items are included in regular reports from the CEO to the Executive Committee and the Board of Trustees, at which it is scrutinised. The risk register of strategic risks contains the risks that present a longer-term (and often an external) challenge to the College’s continuing ability to fulfil its charitable objectives. This is maintained by the CEO and the Chief of Staff, and is considered regularly by the Audit, Finance and Risk Committee and the Board of Trustees.

RCPCH Trustees' Annual Report for the year ended 31 August 2022

Plans for future periods

Setting a strategy for the future in the midst of a global pandemic is not an easy task for any organisation and our strategy therefore sets broad aims that are reflective of our mission and vision. This direction of travel will continue into the next twelve months, and our work will continue to fit within the four strategic priorities.

The College referred to the advice contained in the Charity Commission's guidance on public benefit when reviewing and planning its future activities.

Objectives for 2022-23

The four strategic priorities at the centre of our strategy will continue to act as the blueprint for our work. Over the next year we will use these priorities to continue our mission for a healthier future for children and young people across the world. We will achieve this through a focus on the following areas:

----- Start of picture text -----
Standards and Professional Policy and Member
quality training and advocacy representation
examinations and support
Digital The voice of
transformation Humanitarian children and Lifelong career
work young people support
Research and
evidence Equality, Diversity Finance and
and Inclusion governance
Climate change
Improving quality and care Building skills and knowledge Influencing others action Developing our community
----- End of picture text -----

We will continue to use consistent measures of impact, and we will again track the following Key Performance Indicators (KPIs):

Number of members worldwide taking our examinations
Number of members
Number of people that attend our online and face-to-face educational training courses
Percentage of overall College income (across all funds) that comes from sources other than membership, exams and training fees
Our staff participation and collaboration score, as measured through the Investors in People survey.

We will also be looking at other metrics to track our engagement in the forthcoming year to replace the unique personal engagement score.

RCPCH Trustees' Annual Report for the year ended 31 August 2022

Financial review

The Statement of Financial Activities for the year is set out on page 27 of the financial statements.

Financial overview

The year to 31 August 2022 saw the College return to work in the office after the disruption of the past two years, albeit on a hybrid working pattern.

The overall net movement in funds was an increase of £1.7m (2020/21 £2.0m increase) which comprises an increase in general and designated funds of £1.4m and an increase in restricted funds (funds received and used for a specific purpose) of £0.3m.

The College’s total income was £17.7m (2020/21 £16.3m) of which £2.8m (2020/21 £2.4m) has restrictions as to its use. For example, a grant given for a project is only used for the purposes of the project. Restricted income is separately accounted for and unspent balances carried forward from year to year. Restricted funds unspent when a project is complete are available for return to the funder.

Income increased by 8.3% during the financial year and was £1.4m higher than the previous financial year.

Membership subscriptions totalled £5.5m in 2021/22 (2020/21 £5.5m), set against the background of an increase in membership of 4.0% (from 20,479 to 21,306) but a lowering of fees to reflect the new pricing arrangements for Archives of Disease in Childhood (Archives) . Assessment income increased by £1.0m or 23% from £4.4m to £5.4m, which continues the recovery of income lost due to problems running exams in 2019/20; other Education income increased by 2% to £1.5m (2020/21 £1.5m).

Digital income (previously Publications income) totals £1.2m (2020/21 £0.8m) and includes £0.7m (2020/21 £0.8m) in respect of the surplus due to the College from the joint venture to publish Archives in addition to which a cost sharing agreement relating to past-years costs of the journal resulted in a one-off receipt of £380k from BMJ. Most members receive this important and respected College publication as part of their membership and full access to the Archives website is given without charge to anyone with access to the internet living in lower-income countries (as defined by HINARI).

Digital income also includes £0.1m (2020/21 - £0.1m) given to the College by the College’s associated undertaking RCPCH Publications Limited, owned equally by the College and the Neonatal Paediatric Pharmacists Group (NPPG). RCPCH Publications Limited is one of three parties to a joint venture to produce the British National Formulary for Children (BNFC). The aim of BNFC is to assist those who prescribe, dispense or administer medicines for children and is unusual in that it covers the off-label use of medicines and also lists unlicensed medicines necessary for the treatment of children.

Note 13 details performance of the College’s wholly owned subsidiary, British Paediatric Services Limited (BPSL), its’ net profit is donated to the College as a gift aid payment each year. Operating Profit for the company is £0.3m, which is similar to last year’s figure. £0.1m of this surplus together with £0.1m from the previous year was gift-aided to the College in 2021/22 with the remaining £0.2m due to be paid over in 2022/23.

International income has increased by £0.1m (22%) to £1.1m. The RCPCH Global team are currently working with partners, UNICEF, DIFD and the James Percy Foundation in Lebanon, Myanmar, Rwanda and Sierra Leone.

RCPCH Trustees' Annual Report for the year ended 31 August 2022

Restricted income received during the year was £2.8m, an increase of £0.4m on 2020/21. Further information on restricted funds is provided in note 21a on page 43.

Designated income decreased to £169k, a fall of £794k on last year which is accounted for as all remaining income relating to the National Diabetes Quality Programme was received in 2020/21. The designated fund balance at 31 August 2022 is £19.1m, as the freehold property the College owns sits within this fund. More detail of activity within the fund is contained within note 21a on page 43.

Total expenditure has increased by £1.2m from £14.6m in 2020/21 to £15.8m in 2021/22, reflecting an uptake in face-to-face activity over the preceding year.

This year’s financial performance resulted the College’s General Funds Reserve increasing to £1,973k, from £920k in 2020/21. Designated funds have risen to £19.1m.

----- Start of picture text -----
3%
2%
6% 4%
Membership 31%
Assessments 31%
8%
Education and training 8%
31%
Digital 7%
8%
Research and QI 8%
Policy and external affairs 2%
7% International 6%
Fundraising 4%
31%
Other 3%
%
----- End of picture text -----

Pie chart summarising income sources for 2021-22 – full detail in the SOFA on page 27.

----- Start of picture text -----
2%
----- End of picture text -----

----- Start of picture text -----
10% 8%
7%
12%
16% 6%
19%
20%
----- End of picture text -----

----- Start of picture text -----
Membership 8%
Assessments 12%
Education and training 19%
Digital 6%
Research and QI 20%
Policy and external affairs 16%
International 7%
Fundraising 2%
Other 10%
----- End of picture text -----

Pie chart summarising expenditure areas for 2021-22 – full detail in the SOFA on page 27.

RCPCH Trustees' Annual Report for the year ended 31 August 2022

Investment policy and objectives

In 2021 the College increased its Investment Portfolio, transferring an additional £0.1m (this sum to be treated as a Non-Permanent Endowment Fund) into the portfolio managed by Abrdn (formerly Aberdeen Standard Capital). The College has determined its own Environmental, Social and Governance (ESG) investment profile that defines those areas in which funds can be invested and seeks to preserve and grow the portfolio’s value over time with a targeted total return of CPI +3% per annum measured over a five-year rolling time-frame. The portfolio has declined in value over the past 12 months in line with the market in general and at year-end this target was not being met.

In addition to this £2.1m held in an Aberdeen Liquidity Fund, a 24-hour call, interest bearing deposit that is treated as cash in these accounts.

Premises

The College's freehold premises at 5-11 Theobalds Road were acquired on 15 January 2008 and provide approximately 23k square feet of flexible space. The purchase price was £17.4m. At the same time the College took out a £4.0m mortgage loan with the Royal Bank of Scotland plc to fund the purchase. Costs associated with the purchase of the premises, fitting it out to the College’s specification and irrecoverable VAT resulted in a total cost of £19.1m. A valuation of the premises carried out by Knight Frank in July 2019 set the fair value at £16.8m and the related impairment was reflected in that year’s accounts. In July 2022 the building was again valued by Knight Frank giving a fair value of £16.5m. No further impairment was suffered as the College now depreciates the building and its’ book value is below this valuation. The College is granting a six-year lease of the first floor and part of the ground floor of the Theobalds Road offices to Blood Cancer UK which will commence in 2022/23 and generate a rental income of £225k per annum.

Reserves policy

The General Funds represent the “free” funds of the College which are not designated for particular purposes or restricted in any way; they are essentially the College’s reserves. Such funds need to be held as reserves to permit a responsible reaction to uncertainties.

During 2021/22 the College reset the upper limit of its Reserves Policy from £1m to £2m. Designated funds at year end are £19.1m. Details of all designated funds together with the anticipated timing of this expenditure can be found in note 21a to the accounts. Restricted funds are £3.0m an increase of £0.4m over last year. Details of this work can be found in note 21a to the accounts.

RCPCH Trustees' Annual Report for the year ended 31 August 2022

Donations disclosure

In the 2021/22 financial year, the College received the following grants and donations in support of its activities.

NHSE/Barnardo’s (Boloh Helpline for children)	£30,000
Department of Health & Social Care	£13,490
NHSE/Barnardo’s	£20,000
Dinwoodie Charity	£151,277
PF Charitable Trust	£10,000
NHSE (Health & Justice Team)	£19,918

These grants and donations provided support for a number of projects including the development of healthcare standards for children and young people (CYP) in secure settings, eLearning for clinicians involved in research, safeguarding guidance on early medical abortion, and the development of targeted interventions for paediatricians to nurture resilience, leadership and wellbeing. There were also collaborative projects with Barnardo’s to provide extra support for children’s respiratory and acute services during autumn/winter 2021 and a youth action project for CYP to find out more about the work of the NHS. All offers of funding are reviewed under the ‘RCPCH Policy for Accepting Donations/Funding’ before acceptance.

Pay transparency and equality

The pay framework that the College introduced in 2020 to afford full transparency, set equal pay for equal work and recognise subject matter experts has delivered on its overarching principles. The Equality Impact Assessment continues to evidence a narrowing of gender and ethnicity pay gaps, and the work on recruitment to attract applicants from harder to reach communities has also proved successful, with the College already exceeding targets set for September 2023.

The College continues to attract high calibre external candidates and 83% of roles are filled by the preferred candidate on the first round of recruitment. The College’s commitment to talent management and succession planning is also delivering with a number of staff promoted to more senior roles across the College. The College is also exceeding its targets for the number of Band D roles filled by staff from Black, Asian and other ethnic minorities set for September 2023.

RCPCH Trustees' Annual Report for the year ended 31 August 2022

Objects and activities

Purposes and aims

The primary purposes for which the College is established are its objects. These are stated in its Royal Charter and are as follows:

to advance the art and science of paediatrics;
to raise the standard of medical care provided to children;
to educate and examine those concerned with the health of children;
to advance the education of the public (and in particular medical practitioners) in child health which means the protection of children, the prevention of illness and disease in children and safeguarding their optimal development.

The College therefore aims to promote high quality, effective and efficient health services for children and young people, their parents and other carers, delivered by appropriately trained and experienced doctors. The College seeks to ensure that there is an evidence base for such services’ effectiveness and efficiency and it works with all health carers of children to improve the overall physical, mental and emotional health of children and young people in the UK and elsewhere.

In shaping our objectives for the year and planning our activities, the Trustees have considered the Charity Commission’s guidance on public benefit, including the guidance Public benefit: running a charity (PB2).

Vision, mission and values

Our vision is “To transform child health through knowledge, innovation and expertise.”

This will be achieved through our mission for a healthier future for children and young people across the world and our College values of innovating, influencing, including and leading.

----- Start of picture text -----
Innovate Influence Include Lead
Approach things creatively Advocate for better Embrace diversity Develop self and others
child health
Embrance risk Ask for the voices of children Act as positive role models
View change as an Challenge positively and young people Act with integrity and honesty
opportunity Share best practice Work together
Encourage, praise and thank
Have an open mind to Work proactively Value everyone’s input
new ideas
----- End of picture text -----

Structure, governance and management

The RCPCH was established under a Royal Charter, which established the objects and powers of the charitable company. The charity is governed by this Charter and by Bye-Laws; revisions to these are subject to approval from the Privy Council and an RCPCH General Meeting. The current version of these documents took effect from 1 November 2016, when a new 12-member Board of Trustees was established.

RCPCH Trustees' Annual Report for the year ended 31 August 2022

The Trustees delegate day-to-day management of the charity to the CEO, and through the CEO to other staff. In 2019, the Board of Trustees agreed a new scheme of delegations formalising the level of decisions delegated to the CEO, to other staff, and to senior committees. The senior committees of the College are as follows:

----- Start of picture text -----
Board of Trustees
• Chaired by Joanne Shaw
• President, Registrar, Treasurer
• Four Member Trustees
• Three external Trustees, appointed to address skills gaps
• Beneficiary Trustee
Council
• Chaired by the President
• Representative body of the membership responsible for
setting strategy
Executive Committee
• Chaired by the President
• Responsible for delivery of our strategy
• Senior officers
• Senior Management Team (SMT)
Audit, Finance and Risk Committee
• Chaired by the Treasurer
Remuneration Committee
• Chaired by the Treasurer
• Responsible for reviewing pay awards for CEO and Directors
Appointments Panel
----- End of picture text -----

RCPCH Trustees' Annual Report for the year ended 31 August 2022

The College also has two subsidiary undertakings: British Paediatric Services Ltd (100% stake) and RCPCH Publications Ltd (50% stake). The results of these subsidiaries are consolidated in the group financial statements. Further details are given in note 13 to the accounts under ‘Subsidiary Undertakings’.

All trustees give their time voluntarily and receive no benefits from the charity for their work as trustees. Any expenses reclaimed from the charity by trustees are set out in note 8 to the accounts. Trustees are permitted by the Royal Charter to receive remuneration from the RCPCH for non-trustee work for the College. Any instances of this are noted at meetings of the Board of Trustees and are also set out in note 8 to the accounts.

An external review of the Board of Trustee’s performance, benchmarking against regulatory guidance and the Charity Governance Code, was undertaken in autumn 2020. The Trustees received its recommendations and agreed an action plan in December 2020 and has monitored progress since. The current action plan is expected to be completed by end-2022.

Appointment, induction and training of Trustees

Under the governing documents, two of the trustee posts (President and Registrar) are appointed via election by eligible College members. All other trustee posts are filled by appointment against selection criteria. The Appointments Panel (a subcommittee of the Board of Trustees) is responsible for undertaking this process and ensuring that it complies with relevant regulatory advice and best practice within the charity sector. In the year under review, this process included the recruitment of Simon Meredith and Dr Tsitsi Chawatama-Kwambana.

Trustee induction and training

All trustees receive an induction upon appointment and in addition to information relevant to their specific post, this includes:

An overview of the legal duties of charity trustees, as set out in the Charity Commission’s document The Essential Trustee (CC3).
The RCPCH’s governing and management structures, and its strategy and workplan.
The RCPCH’s approach to risk, financial management, and safeguarding.
Meetings with the CEO and other senior staff.

In addition, trustees are offered appropriate training and development opportunities throughout their term.

RCPCH Reference and administrative information for the year ended 31 August 2022

Reference and administrative information

For the year ended 31 August 2022

Charity number: 1057744 Charity number: SC038299

Countries of registration: England and Wales, Scotland Registered office and operational address: 5-11 Theobalds Road, London, WC1X 8SH

Trustees:

Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Ms Joanne Shaw Chair Dr Camilla Kingdon President Professor Steve Turner Registrar Dr Elizabeth Marder Treasurer Dr Carol Roberts Member Trustee until 31 October 2021 Professor Sir Terence Stephenson Member Trustee Dr John Williams Member Trustee until 31 August 2022 Dr Tsitsi Chawatama-Kwambana Member Trustee from 1 December 2021 Dr Bhanu Williams Member Trustee Ms Gillian Budd External Trustee until 31 October 2021 Mr Simon Meredith External Trustee from 1 December 2021 Mr Adam Igra External Trustee Ms Sarah Watson External Trustee Ms Adrija Bhattacharyya Beneficiary Trustee

Senior Management:

Jo Revill Chief Executive Officer (until 14 October 2022) Emily Arkell Director of Research and Quality Improvement Louise Frayne Director of People David Howley Director of Corporate Services (until 5 January 2022) Paul Marchant Director of Corporate Services (from 15 February 2022) Richard Burley Chief Digital Officer (from 21 January 2022) Robert Okunnu Director of Membership, Policy and External Affairs (until 14 October 2022) and Interim CEO (from 17 October 2022) Daniel Waeland Director of Education and Training Natasha Neill Chief of Staff Melissa Ashe Co-Director Membership, Policy and External Affairs (from 21 November 2022) Selma Laklai Co-Director Membership, Policy and External Affairs (from 21 November 2022) Bankers: Royal Bank of Scotland plc, LONDON. WC1V 6PQ Solicitors: DAC Beachcroft, 25 Wallbrook, London, EC4N 8AF (from 31 Dec 2020) Auditor:* Sayer Vincent LLP, Chartered Accountants and Statutory Auditor Invicta House, 108-114 Golden Lane LONDON EC1Y 0TL

The Board of Trustees have led the search and selection process for the appointment of the new CEO during Winter 22/23.

RCPCH Trustees' Annual Report for the year ended 31 August 2022

Statement of Trustees' Responsibilities

The trustees (who are also directors of Royal College of Paediatrics and Child Health for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company or group for that period. In preparing these financial statements, the trustees are required to:

Select suitable accounting policies and then apply them consistently.
Observe the methods and principles in the Charities SORP.
Make judgements and estimates that are reasonable and prudent.
State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements.
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

There is no relevant audit information of which the charitable company’s auditor is unaware.
• The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The trustees’ annual report has been approved by the trustees on 8 December 2022 and signed on their behalf by

Joanne Shaw, Chair of Trustees

RCPCH Independent auditor's report for the year ended 31 August 2022

Independent auditor’s report to the trustees of Royal College of Paediatrics and Child Health

Opinion

We have audited the financial statements of Royal College of Paediatrics and Child Health (the ‘parent charity’) for the year ended 31 August 2022 which comprise the consolidated statement of financial activities, the group and parent charity balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Give a true and fair view of the state of the group and parent charity’s affairs as at 31 August 2022 and of the group’s incoming resources and application of resources, for the year then ended.
Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.
Have been prepared in accordance with the requirements of the Charities Act 2011 and of the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

The trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
The trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group or parent charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

RCPCH Independent auditor's report for the year ended 31 August 2022

Other information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

The information given in the trustees’ annual report is inconsistent in any material respect with the financial statements.
Sufficient and proper accounting records have not been kept; or
The financial statements are not in agreement with the accounting records and returns; or
We have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group and parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

RCPCH Independent auditor's report for the year ended 31 August 2022

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and section 44(1) (c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control .
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s or the parent charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent charity to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

RCPCH Independent auditor's report for the year ended 31 August 2022

Use of our report

This report is made solely to the parent charity’s trustees as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the parent charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent charity and the parent charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

December 2022

Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, London, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

RCPCH Financial statements and notes for the year ended 31 August 2022

Royal College of Paediatrics and Child Health

Consolidated statement of financial activities (incorporating an income and expenditure account) For the year ended 31 August 2022

Unrestricted £'000 10 5,461 5,425 1,191 1,406 1 381 123 483 350 58	Restricted £'000 266 - - 85 1,405 15 959 26 69 -	Endowment £'000 - - - - - - - - - - -	2022 Total £'000 276 5,461 5,425 1,191 1,491 1,406 396 1,082 509 419 58	Unrestricted £'000 5 5,503 4,416 801 1,294 773 263 153 466 234 34	Restricted £'000 2 - - 33 165 1,345 10 840 13 - -	Endowment £'000 - - - - - - - - - - -	2021 Total £'000 7 5,503 4,416 833 1,459 2,118 273 993 479 234 34
14,888	2,825	-	17,713	13,942	2,408	-	16,350
206 - 1,189 1,946 955 2,953 1,743 2,568 198 1511	46 - - - 60 117 1,338 10 873 53	- - - - - - - - 0	252 1,189 1,946 1,015 3,070 3,081 2,578 1,071 1563	143 - 1,510 1,987 520 2,204 1,836 1,893 499 1,754	23 - - - - 201 1,218 73 692 46	- - - - - - - - -	166 1,510 1,987 520 2,405 3,054 1,966 1,191 1,800
13,269	2,496	-	15,765	12,344	2,253	-	14,597
(208) 1,619	- 329	- -	(208) 1,948	255 1,598	- 155	- -	255 1,753
1,411 (18)	329 18	- -	1,740 -	1,853 (61)	155 61	- -	2,008 -
1,393	347	-	1,740	1,792	216	-	2,008
1,393 19,662	347 2,643	- 15	1,740 22,320	1,792 17,870	216 2,427	- 15	2,008 20,312
21,055	2,990	15	24,060	19,662	2,643	15	22,320

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 20a to the financial statements.

RCPCH Financial statements and notes for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Consolidated statement of cash flows For the year ended 31 August 2022

		The group		The charity
		2022	2021	2022	2021
	Note	£'000	£'000	£'000	£'000
Fixed assets:
Tangible assets	10	16,918	17,082	16,918	17,082
Intangible assets	11	413	474	413	474
Investments	12	2,290	2,371	2,290	2,371
		19,621	19,927	19,621	19,927
Current assets:
Stock		-	-	-	-
Debtors	15	2,179	2,225	2,029	2,142
Cash at bank and in hand		8,526	7,051	8,428	6,964
		10,705	9,276	10,457	9,106
Liabilities:
Creditors: amounts falling due within one year	16	(4,867)	(5,312)	(4,778)	(5,244)
Net current assets / (liabilities)		5,838	3,964	5,679	3,862
Total assets less current liabilities		25,459	23,890	25,300	23,789
Creditors: amounts falling due after one year	18	(1,399)	(1,570)	(1,399)	(1,570)
Net assets		24,060	22,320	23,901	22,219
Funds:	21a
Restricted and endowment funds		3,005	2,658	2,981	2,648
Unrestricted income funds:
Designated funds		19,082	18,742	18,947	18,742
General funds		1,973	920	1,973	829
Total unrestricted funds		21,055	19,662	20,920	19,571
Total funds		24,060	22,320	23,901	22,219

Approved by the trustees on 08 December 2022 and signed on their behalf by

Joanne Shaw Chair of Trustees

Dr Liz Marder Treasurer

RCPCH Financial statements and notes for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Balance sheet

For the year ended 31 August 2022

£'000 £'000 1,740 555 (21) 208 (44) 18 - 46 (445) 2,057 44 (18) (299) (32) (840) 685 49 (411) (171) (171) 1,475 7,051 8,526 At 1 September 2021 Cash flows £ £ 7,051 1,475 7,051 1,475 175 - 1,570 (171) 5,307 (171) 2022	£'000 £'000 1,740 555 (21) 208 (44) 18 - 46 (445) 2,057 44 (18) (299) (32) (840) 685 49 (411) (171) (171) 1,475 7,051 8,526 At 1 September 2021 Cash flows £ £ 7,051 1,475 7,051 1,475 175 - 1,570 (171) 5,307 (171) 2022	£'000 £'000 2,008 465 2 (255) (34) 17 15 360 5 2,583 34 (17) (556) (53) (1,327) 336 (25) (1,607) (153) (153) 823 6,229 7,051 Other non- cash changes At 31 August 2022 £ £ - 8,526 - 8,526 - 175 1,399 - 6,952 2021	£'000 £'000 2,008 465 2 (255) (34) 17 15 360 5 2,583 34 (17) (556) (53) (1,327) 336 (25) (1,607) (153) (153) 823 6,229 7,051 Other non- cash changes At 31 August 2022 £ £ - 8,526 - 8,526 - 175 1,399 - 6,952 2021
	2,057 (411) (171)		2,583 (1,607) (153)
(171)		(153)
At 1 September 2021 £ 7,051		Other non- cash changes £ -
	1,475 7,051		823 6,229
	8,526		7,051
	Cash flows £ 1,475		At 31 August 2022 £ 8,526
7,051	1,475	-	8,526
175 1,570	- (171)	-	175 1,399
5,307	(171)	-	6,952

RCPCH Financial statements and notes for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

1 Accounting policies

a) Statutory information

Royal College of Paediatrics and Child Health is an unincorporated charity registered with the Charity Commission for England and Wales and the Office of the Scottish Charity Regulator.

The registered office address is 5-11 Theobalds Road, LONDON, WC1X 8SH.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)- (Charities SORP FRS 102) and the Charities Act 2011.

These financial statements consolidate the results of the charity and its wholly-owned subsidiary British Paediatrics Services Limited (BPSL). The results are consolidated on a "line-by-line basis" for a subsidiary undertaking (BPSL) and on a "one-line basis" (of net results or share of net assets) for an associated undertaking (RCPCH Publications). Transactions and balances between the charity and its undertakings have been eliminated from the consolidated financial statements as appropriate. Balances between the entities are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The Trustees have considered the financial position of the College recognising its healthy cash position. They have evaluated the risks that it faces and continue to hold the view that there are no material uncertainties around going concern over the next 12 months.

RCPCH Financial statements and notes for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

1 Accounting policies (continued)
e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Members' subscriptions are due on 1 January each year for existing members and on date of admission for new members; income is accounted for on an accruals basis over the calendar year to which they relate.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

Income from legacies are recognised when the income is probable and can be measured sufficently reliable.

f) Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

g) Fund accounting Endowment funds are monies which have been given to the College in trust with the restriction that they are held as capital with the income generated from them to be used for specific awards.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

h) Expenditure and irrecoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Fundraising trading relates to the costs incurred by the charity in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising and trading purpose
Expenditure on charitable activities includes the costs of delivering services for its members and the profession undertaken to further the purposes of the charity and their associated support costs

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

RCPCH Financial statements and notes for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

1 Accounting policies (continued)

i) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of contracts provided by each activity. Support and governance costs are allocated on the basis of head count and transactional value:

	Membership	11.86%
	Assessment	17.86%
	Digital	7.52%
	Education and Training	19.06%
	Research & Quality Improvement	19.17%
	Policy & External Affairs	12.47%
	International	5.42%
	Other professional activities	6.64%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

l) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

m) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £3,500 with the exception of computer hardware, for which the limit is £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

	Fixtures	5 years
	Office equipment	10 years
	Fittings and Refurbishment	10 years
	IT hardware	3 years
	Intangibles - Database & Software	5-7 years
	Website	7 years
	Building	50 years

n) Listed investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

Investments in subsidiaries

Investments in subsidiaries are at cost.

RCPCH Financial statements and notes for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

1 Accounting policies (continued)

o) Stocks

Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks. Donated items of stock, held for distribution or resale, are

recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

p) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

q) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

r) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

s) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

t) Pensions

The college operates a Statutory Compliance Scheme which contributes a defined amount to individual employees' pension schemes and the pension charge represents the amounts payable by the College.

2 Income from investments

o m i n v e s t m e n t s
e from investments is unrestricted. n Bank Deposits	2 0 T o £ ' 0	2 2 2021 t a l Total 0 0 £'000 4 4 34
		4 4 34

3 Grants

----- Start of picture text -----
Balance at 1 Balance at
September Received in 31 August
2021 year 2022 Income
£'000 £'000 £'000 £'000
Group and College
Government & government agencies 190 1,211 8 1,393
Other grants 68 798 7 859
258 2,009 15 2,252
----- End of picture text -----

Income from grants is included in restricted funds incoming resources as follows:

& Young People & training & QI nal External Affairs me from grants	2 0 T o £ ' 0 1 , 3 8	2 2 2021 t a l Total 0 0 £'000 2 6 13 6 7 157 1 5 1,062 2 9 665 1 5 10
	2 2	5 2 1909

RCPCH Trustees' Annual Report for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

4a Analysis of expenditure (current year)

Fundraising trading £'000 - 252 - - - -				Charitable activities	Charitable activities				Governance costs £'000 - 31 - - - -	Support costs £'000 - - 557 1,166 278 764	2022 Total £'000 9,005 3,995 557 1,166 278 764	2021 Total £'000 8,510 3,190 486 1,549 225 637
	Membership £'000 384 477 - - - -	Assessment £'000 991 461 - - - -	Digital £'000 268 539 - - - -	Education & Training £'000 2,014 529 - - - -	Research & Quality Improvement £'000 2,025 526 - - - -	Policy & External Affairs £'000 1,685 548 - - - -	International £'000 345 576 - - - -	Other professional activities * £'000 1,293 56 - - - -
252 - -	861 328 -	1,452 494 -	807 208 -	2,543 527 -	2,551 530 -	2,233 345	921 150 -	1,349 183 31	31 - (31)	2,765 (2,765) -	15,765 -	14,597 - -
252	1,189	1,946	1,015	3,070	3,081	2,578	1,071	1,563	-	-	15,765	14,597
166	1,510	1,987	520	2,405	3,054	1,966	1,191	1,800	-	-		14,597
This includes Corporate Services, HR and CEO divisions

RCPCH Trustees' Annual Report for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

4b Analysis of expenditure (prior year)

ear)
Fundraising trading £'000 - 166 - - - -				Charitable activities					Governance costs £'000 - 21 - - - -	Support costs £'000 - - 486 1,549 225 637	2021 Total £'000 8,510 3,190 486 1,549 225 637
	Membership £'000 425 692 - - - -	Assessment £'000 806 743 - - - -	Digital £'000 356 55 - - - -	Education & Training £'000 1,795 104 - - - -	Research & Quality Improvement £'000 1,952 552 - - - -	Policy & External Affairs £'000 1,467 181 - - - -	International £'000 454 591 - - - -	Other professional activities * £'000 1,255 85 - - - -
166 - -	1,117 393 -	1,549 438 -	411 109 -	1,899 505 -	2,504 549 -	1,648 318 -	1,045 146 -	1,340 439 21	21 - (21)	2897 (2,897) -	14,597 - -
166	1,510	1,987	520	2,405	3,054	1,966	1,191	1,800	-

This includes Corporate Services, HR and CEO divisions

RCPCH Financial statements and notes for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

5 Net income / (expenditure) for the year

This is stated after charging:

This is stated after charging:
	2022	2021
	£'000	£'000
Depreciation/Amortisation	555	465
Revaluation of fixed asset	-	-
Gains/loss on disposal of fixed assets	21	2
Interest payable	22	16
Operating lease rentals:
Property	11	35
Other	12	52
Auditor's remuneration (excluding VAT):
Audit	20	18
Other services		3

6 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Staff costs were as follows:
Salaries and wages Employer’s contribution to defined contribution pension schemes Social security costs Redundancy and termination costs	2022 £'000 7,506 838 618 87	2021 £'000 7,095 769 585 61
	9,049	8,510

The redundancy and termination costs were settled and paid at the balance sheet date.

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

insurance) during the year between:
	2022	2021
	No.	No.
£60,000 - £69,999	7	3
£70,000 - £79,999	2	3
£80,000 - £89,999	2	4
£90,000 - £99,999	1	-
£100,000 - £109,999	-	-
£110,000 - £119,999	-	-
£120,000-£130,000	-	-
£130,000-£140,000	1	1

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £738,496 (2021: £825,313). No trustee received any remuneration as part of this figure.

No (2021: none) trustees received payment (2021: 0) in relation to work carried out under the Invited Review programme. No other trustees either received or waived any emoluments during the year (2021: none).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £13,151 (2021: £862) incurred by 6 (2021: 2) members relating to attendance at meetings of the trustees.

The relevant staff costs have been included in the costs of generating voluntary income and in costs of charitable activities. The gender split in the College workforce is 75% female 25% male (2021: 73% female 27% male) and all roles are evaluated and paid in accordance with the College pay scales irrespective of gender.

RCPCH Financial statements and notes for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

Staff are split across the activities of the charity as follows (head count basis):

Staff are split across the activities of the charity as follows (head count basis): al College of Paediatrics and Child Health es to the fnancial statements the year ended 31 August 2022
International Digital Policy & Ext Affairs Education & Training Support Membership Examinations Research & QI	2022 No. 4 27.9 16.3 41.3 40.5 5.0 10.4 44.9	2021 No. 5 25.8 14.8 38.8 37.4 4.2 10.4 41.2
	190.3	177.6

8 Related party transactions

Jo Revill, CEO of RCPCH, was a Trustee of Science Media Centre (SMC).

On the 15/09/2021 the College made a payment of £2,500 to the Science Media Centre.

Dr Camilla Kingdon, President and a Trustee of the College is an employee at Evelina London Children’s Hospital.

On 12/10/2021, The College received £36 from Evelina London Children's Hospital in relation to a CPD Approval Fee.

As at 31/08/2022 the following payments remained outstanding to the college:

£130 in relation to a delegate fee for registration of an EPD course £450 in relation to registration fees for a CPD course

Professor Steve Turner was appointed Registrar as of 30 March 2021 and he is a Consultant Paediatrician in general & respiratory paediatrics at Royal Aberdeen Children’s Hospital. He chairs the NHS Grampian consultant sub-committee and is regional clinical lead for child health.

During the Financial year, the College received a total of £390 from the NHS Grampian as payment for three CPD course delegates.

Dr Carol Roberts who was a Member Trustee of RCPCH until 31/10/2021, is a National Medical Director Appraiser at NHS England.

On 26/11/2021, £108,000 was received from the NHS England as funding for the review and update of the ‘Purple Book’.

Professor Sir Terence Stephenson, a Member Trustee of the College, is the Nuffield Chair of Child Health at University College London Institute of Child Health and is an Honorary Consultant Paediatrician at University College Hospital and Great Ormond Street Hospital. He is also a Fellow of Royal College of Physicians and Honorary Fellow of Royal College of Surgeons.

As at 31/08/2022, £1,552 remains outstanding from GOSH and owed to the College in relation to Associate membership and training fee.

The College received payments amounting to £5,249 in relation to Associate and Members Training fees

As at 31/08/2022, £29,909 remains outstanding from University College London (UCL) owed to the College as their contribution towards Grant ref:NIHR202322. Additionally £346 remains outstanding from Royal College of Surgeons for ILM training courses.

The College received £12,500 from UCL – Child health as the annual grant contribution for the work of the BPSU. This was invoiced on 18/08/2021.

The College received £7,500 from Royal College of Physicians in relation to funding for the Asthma Audit. As at 31/08/2022, £1,500 remains outstanding.

The College received £10,508 from Royal College of Surgeons in relation to the provision of various Leadership courses.

BPSL received £16,800 from GOSH in relation to MTI sponsorship fees. As at 31/08/2022, £52,080 remains outstanding from GOSH and owed to BPSL in relation to the MTI sponsorship fees.

RCPCH Financial statements and notes for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

8 Related party transactions (continued)

Dr Carol Roberts, a Medical Director Appraiser from NHS England where the college received £9,931 for the support Health and Justice Children project.

Dr Bhanu Williams, a Member Trustee of the College, is employed by London Northwest University Healthcare NHS Trust (LNWH NHS Trust) and is part-time seconded to Health Education England (HEE).

The following payments were received from HEE during the financial year:

£2,166.67 for the supply of Effective Education Supervision training materials

£3,600 in registration fees for a CPD course.

£15 was written off in the financial period for an invoice issued to LNWH NHS Trust owed to RCPCH for a Fellowship study day (CPD) issued on 18/02/2020.

Adam Igra, an independent Trustee of the College from October 2020 is Director of Innovation at Guy’s & St. Thomas’ NHS FT. The Following payments were received from the Institute to College or BPSL during the 2021/2022 financial year;

£4,800 in relation to MITI sponsorship fees (invoiced in the previous financial period) received in BPSL

£6,720 in relation to MITI sponsorship fees which £3,360 each was received in College and BPSL

£5,249 received in college for Associate members and training fee

9 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary British Paediatrics Services Limited distributes all available profits to the parent charity. Their charge to corporation tax in the year was:

charge to corporation	tax in the year was:
		2022	2021
		£'000	£'000
UK corporation tax at	19%	-	-

Fixtures, office equipment, and IT hardware £'000 1,401 203 (235)	Fittings and Refurbishment 331 96	Freehold property £'000 16,799 - -	Total £'000 18,531 299 (235)
1,369	427	16,799	18,595
977 187 - (234)	- 39 - -	472 236 - -	1,449 462 - (234)
930	39	708	1,677
439	388	16,091	16,918
424	331	16,327	17,082

Land with a value of £5,000,000 (2021: £5,000,000) is included within freehold property and not depreciated.

Any properties held at valuation were last valued on 31 July 2022 by Knight Frank.

All of the above assets are used for charitable purposes.

Fixtures, office equipment and IT includes silverware and regalia and similar donated assets which have been valued for insurance purposes and for these accounts at a value of £49,555 (2021 - £49,555). The valuation was performed in July 2013 by Thomas G Roswell (Rupert Toovey & Co Ltd, trading as Toovey's).

RCPCH Financial statements and notes for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

11 12 At the start of the year Aberdeen Money Market Fair value at the start of the year Additions at cost Disposal proceeds Net book value Cost Listed shares on stock exchange Cash Net gain / (loss) on change in fair value Cash held by investment broker pending reinvestment Fair value at the end of the year Listed investments At the start of the year Additions in year Disposals in year Amortisation Charge for the year Eliminated on disposal Gilts At the end of the year At the end of the year At the start of the year At the end of the year The group and college Intangible fixed assets	IT Software £'000 938 32 -	Total £'000 938 32 -
	970	970
	463 93 -	463 93 -
	556	556
	413	413
	474	474
	2,270 20	2,323 48
	2,290	2,371
	2022 £'000 378 72 1,820 20	2021 £'000 620 56 1,647 48
	2,290	2,371

RCPCH Financial statements and notes for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

13 Subsidiary undertaking

The College owns 100% of the ordinary share capital of British Paediatric Services Limited Company No. 02158572 (England & Wales) which has been consolidated as a subsidiary undertaking throughout. The College owns 50% of the ordinary share capital of RCPCH Publications Limited Company No. 03670119 (England & Wales) and, as there is no controlling interest, it has therefore been consolidated as an associated undertaking. Both companies are registered in England and Wales and registered at the same address as the parent charity.

One trustee, Dr Elizabeth Marder is also a director of BPSL and RCPCH Publications.

The related trading undertakings make gift payments to the College, usually their total net profit. All activities have been consolidated in the SOFA in accordance with the accounting policy on consolidation (see note 1) and are included in both incoming resources and resources expended within "Communications and Publications", "Other Trading" and "Investment Income".

Both related trading undertakings have an accounting reference date of 31 August and summaries of their trading results are shown below.

BPSL manages the provision of exhibition space at the Spring Meeting, provides some membership information for mailing services and distributes medical publications of interest to paediatricians.

BPSL RCPCH Publications £ £ 200,463 419,013 (39,032) (159,682) 161,431 259,331 57 89 161,488 259,420 - 100,044 161,488 259,420 (80,744) (200,044) (80,744) - - 159,420 2022	BPSL RCPCH Publications £ £ 200,463 419,013 (39,032) (159,682) 161,431 259,331 57 89 161,488 259,420 - 100,044 161,488 259,420 (80,744) (200,044) (80,744) - - 159,420 2022	RCPCH BPSL £ £ 231,402 266,697 (38,353) (49,674) 193,049 217,022 15 22 193,064 217,044 - 91,116 193,064 217,044 (96,532) (208,116) (96,532) - - 100,044 2021	RCPCH BPSL £ £ 231,402 266,697 (38,353) (49,674) 193,049 217,022 15 22 193,064 217,044 - 91,116 193,064 217,044 (96,532) (208,116) (96,532) - - 100,044 2021
161,431 57	259,331 89	193,049 15	217,022 22
161,488	259,420	193,064	217,044
- 161,488 (80,744) (80,744)	100,044 259,420 (200,044) -	- 193,064 (96,532) (96,532)	91,116 217,044 (208,116) -
-	159,420	-	100,044

Amounts owed to the parent undertaking are shown in note 15.

In respect of RCPCH Publications Limited the College charged £42,000 (2021- £42,000) for College staff, newsletter advertising and facilities used.

14 Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

	2022	2021
	£'000	£'000
Gross income	17,453	16,292
Result for the year	2,107	1,745

RCPCH Financial statements and notes for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

15 Debtors

Debtors
Amounts due from associated undertakings Accrued income Other debtors Prepayments Trade debtors	2022 2021 £'000 £'000 386 890 658 344 82 98 587 432 466 461 2,179 2,225 The group		2022 2021 £'000 £'000 198 771 656 344 121 148 587 419 467 460 2,029 2,142 The charity
	2,179	2,225	2,029	2,142

16 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Deferred income (Note 17) Accruals Mortgage loan Trade creditors Taxation and social security	2022 2021 £'000 £'000 193 175 641 509 349 379 355 744 3,329 3,505 4,867 5,312 The group		2022 2021 £'000 £'000 193 175 641 507 349 371 378 737 3,217 3,454 4,777 5,244 The charity
	4,867	5,312	4,777	5,244

17 Deferred income

Deferred income comprises of examination income and invoices from other serivces.

	The group		The charity
	2022	2021	2022	2021
	£'000	£'000	£'000	£'000
Balance at the beginning of the year	3,505	4,298	3,454	4,286
Amount released to income in the year for
Membership subscriptions	(1,387)	(1,357)	(1,388)	(1,405)
Amount released to income in the year exams and invoices	(5,078)	(5,584)	(4,986)	(5,550)
Amount deferred in the year	6,289	6,148	6,137	6,123
Balance at the end of the year	3,329	3,505	3,217	3,454

RCPCH Financial statements and notes for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Notes to the financial statements

For the year ended 31 August 2022

18 Creditors: amounts falling due after one year

Creditors: amounts falling due after one year
In more than one year but not more than In more than two years but not more than In more than five years within 5 years by instalments Analysis of mortgage loan not wholly Mortgage loan	2022 2021 £'000 £'000 1,399 1,570 1,399 1,570 175 175 522 522 702 873 The charity
	1,399	1,570
	175 522 702	175 522 873

The mortgage loan is secured on the freehold property 5-11 Theobalds Road. It represents 10.49% (2021- 11.23%) of the cost of the property and is repayable in quarterly instalments from 2011 to 2033.

Interest was charged at 6.40% on the first £2,500,000 for the period to 15 January 2013. The interest on the remainder, and on the whole after this date, is charged at 0.75% above the Bank of England bank rate.

19 Pension scheme

The College operates a scheme to contribute a defined amount to individual employees' pension schemes. The assets of the various schemes are held separately from those of the College in independently administered funds. The total cost to the college of this scheme was £618,000 (2021:£569,000).

20a Analysis of group net assets between funds (current year)

Analysis of group net assets between funds	(current year)
Tangible fixed assets Investments Net current assets Intangible assets Long term liabilities Net assets at 31 August 2022	General unrestricted £'000 - - - 1,973 -	Designated funds £'000 16,918 413 2,290 860 (1,399)	Restricted funds £'000 - - - 2,990 -	Endowment funds £'000 - - - 15 -	Total funds £'000 16,918 413 2,290 5,838 (1,399)
	1,973	19,082	2,990	15	24,060

20b Analysis of group net assets between funds (prior year)

Analysis of group net assets between funds	(prior year)
Net current assets Long term liabilities Intangible assets Investments Net assets at 31 August 2021 Tangible fixed assets	General unrestricted £'000 - - - 920 -	Designated funds £'000 17,082 474 2,371 385 (1,570)	Restricted funds £'000 - - - 2,643 -	Endowment funds £'000 - - - 15 -	Total funds £'000 17,082 474 2,371 3,963 (1,570)
	920	18,742	2,643	15	22,320

RCPCH Financial statements and notes for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Notes to the financial statements

For the year ended 31 August 2022

At 1 September 2021 £'000 15	Income & Gains £'000 -	Expenditure & Losses £'000 -	Transfers £'000 -	At 31 August 2022 £'000 15 -
30 21 36 124 18 231 500 251 1,035 - 335 62	- - 23 100 - 960 150 85 1,415 65 26	- - - - (848) (33) (117) (1,359) (86) (52)	- - (18) (8) (90) 33 - - (38) 45 10 18 66	30 21 41 92 34 18 376 617 219 1,053 45 324 18 102
2,658	2,824	(2,496)	18	3,005
23 15 12 26 727 75 71 846 - 14,718 1,122 673 - 146 287 921	- 123 - - - - 2 - 351 - - - - - 44 14,368	(4) (90) - - (488) - - (321) (215) (236) (232) (9) - (18) (208) (11,657)	- (33) - - - 55 - - 328 (136) - 870 300 - 250 (38) 45 (1,659)	19 15 12 26 239 55 75 73 853 14,482 1,760 964 - 250 109 71 79 1,973
19,662	14,888	(13,477)	(18)	21,055
22,320	17,713	(15,973)	-	24,060

The narrative to explain the purpose of each fund is given at the foot of the note below.

RCPCH Financial statements and notes for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

----- Start of picture text -----
21b Movements in Funds (reinstated prior year)
At 1
September Income & Expenditure & At 30 August
2020 Gains Losses Transfers 2021
£'000 £'000 £'000 £'000 £'000
Permanent Endowment Funds
Permanent Endowment Funds 15 - - - 15
Restricted Funds
Membership, Policy and External Funds
Paul Polani Fund 45 - (15) - 30
Other Awards & Prizes 27 12 - (18) 21
Policy & External Affairs Funds 32 4 - - 36
Corporate Services
Child Health Research Fund 186 - (18) (134) 34
Fundraising 18 18
International
International Projects 83 840 (692) - 231
El Shamy Bequest 500 - - - 500
Education & Training
Other Education & Training Funds 292 165 (201) (5) 251
Research & QI
Research & QI Funds 813 1,351 (1,218) 89 1,035
RCPCH contribution to Newlife 90 90
Digital
Royalties from PCHR 375 22 (62) 335
CEO
CYP Participation 74 13 (46) 21 62
Total restricted and endowment funds 2,442 2,407 (2,252) 61 2,658
Unrestricted Funds
International Funds
International Training Fund 25 - (2) - 23
Overseas Levy 12 154 (151) - 15
Education & Training
CPD Diairies Fund 12 - - - 12
Exam Booking System Fund 61 - (35) - 26
Research & QI
Diabetes QAQI 432 772 (477) - 727
Other
Committed Expenditure Fund 75 - - - 75
General Donations Fund 66 5 - - 71
Writing Down Reserve 801 - (231) 276 846
Charitable Trading Subsidiary Fund - 234 (144) (90) -
Building Fund 14,954 - - (236) 14,718
Infrastructure Fund 631 - (9) 500 1,122
Strategy Fund 263 - (33) 443 673
Paediatrics 2040 6 - (6) - -
Holiday Pay Accrual Fund 154 - (154) 146 146
Unrealised gans and losses on investments 32 255 - - 287
General Funds 345 12,778 (11,103) (1,100) 921
Total Unrestricted Funds 17,870 14,198 (12,345) (61) 19,662
----- End of picture text -----

RCPCH Financial statements and notes for the year ended 31 August 2022

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

Purposes of endowment and restricted funds

Permanent Endowment Funds comprise the Michael Blacow Memorial Fund and the James Spence Medal Fund. They are in respect of endowments received by the British Paediatric Association transferred to the College at its inception together with a subsequent donation from Mr Peter Blacow to enable the Michael Blacow Memorial Fund to maintain the value of its awards in future. The income generated by these funds is included in Other Awards and Prizes restricted income and is used to further the charitable objectives of the College.

Paul Polani Fund arises from a one-off donation and has been restricted to encourage work in neuro-disability, possibly by funding an award.

Other Awards and Prizes is the aggregate of the following: Donald Paterson Prize Fund, John Lorber Fund, Heinz Fund, Visiting Fellowship Fund and the net income from the Michael Blacow Memorial Fund and the James Spence Medal Fund.

Child Health Research Fund is a resource to provide funded Research Fellowships in Paediatrics with the aim of building capacity in child health research and securing a new generation of academic leaders. El Shamy Bequest is a amount given to the College to fund Child Health Projects in the Palestinian Territories

International Projects represents the balances held on all Global Health team projects.

Education & Training and Research & Policy Funds are net unspent voluntary income, mainly grants, received for the development of specific education programmes and research into and audit of particular childhood illnesses and conditions. CYP Participation Fund is a resource available to support the NHS London Specialised Paediatric Commissioning Group.

Unrestricted funds

Overseas Levy was first collected from the membership in January 2002 following a decision of the 2001 AGM and is designated to fund the development of overseas activities as determined by the Global Health Team – holding duration indeterminate.

Exam booking System the balance of monies set aside to complete the development of the College's new Exams Booking System - holding duration fully expended in 2020-21 .

CPD Diaries Fund - the balance of monies set aside to complete the development of the College's new CPD Diary holding duration fully expended in 2020-21 .

Committed Expenditure fund to meet specific commitments related to College infrastructure - holding duration indeterminate.

General Donations Fund - ensures that all voluntary gifts and donations received for the general work of the College are designated so their application can be monitored. The fund includes silverware and regalia and similar donated assets, which have been included in these financial statements at a value of £73,000 (2021 - £71,000) - holding duration indeterminate.

Writing-Down Reserve is earmarked to allow for college assets to be depreciated in line with the financial policies outlined in Note 1. This forms part of our prudent financial management - holding duration depreciable life of assets.

Flexible Project Fund - funds set aside to fund one-off in-year emergency projects as determined and approved by the Executive Committee .

Fixed Asset Fund identifies those funds that are not free funds and it aims to represent the net asset value of tangible fixed assets which is their NBV after deducting the remaining amount of the mortgage loan payable.

Infrastructure Fund – funds set aside for premises reconfiguration and maintenance and IS projects including long-term projects such as future replacement of the College Website – these funds will be expended year by year as the College delivers its digital strategy but will also be replenished on an ongoing basis.

Strategy Fund – funds set aside to facilitate the College’s three-year strategic plan including the Future Paediatrician project – holding duration life of the three-year plan i.e. to 2020-21.

Holiday Pay Accrual Reserve – funds set aside to cover for Holiday Pay not taken at 31st August 2020 holding duration fully expended 2021-22.

General Funds represent the free funds of the College which are not designated for particular purposes.

Royal College of Paediatrics and Child Health Report and financial statements for the year ending 31 August 2022

Published December 2022

© RCPCH 2022

Royal College of Paediatrics and Child Health 5-11 Theobalds Road, London WC1X 8SH

The Royal College of Paediatrics and Child Health (RCPCH) is a registered charity in England and Wales (1057744) and in Scotland (SC038299).

RCPCH Royal College of Paediatrics and Child Health Leading the way in Children’s Health

Table of contents

Introduction

Achievements and performance

Impact

Improving quality and care

Standards and quality

Digital transformation

Research and evidence

Building skills and knowledge

Professional training and examinations

Humanitarian work

Influencing others

Policy and advocacy

The voice of children and young people

Equality, Diversity, and Inclusion (EDI)

Climate change action

Developing our community

Member representation and support

Lifelong career support

Finance and governance

Volunteers

Fundraising

Principal risks and uncertainties

Plans for future periods

Objectives for 2022-23

Financial review

Financial overview

Investment policy and objectives

Premises

Reserves policy

Donations disclosure

Pay transparency and equality

Objects and activities

Purposes and aims

Vision, mission and values

Our vision is “To transform child health through knowledge, innovation and expertise.”

Structure, governance and management

Appointment, induction and training of Trustees

Trustee induction and training

Reference and administrative information

Trustees:

Senior Management:

Statement of Trustees' Responsibilities

Auditor

Independent auditor’s report to the trustees of Royal College of Paediatrics and Child Health

Opinion

Basis for opinion

Conclusions relating to going concern

Other information

Matters on which we are required to report by exception

Responsibilities of trustees

Auditor’s responsibilities for the audit of the financial statements

Use of our report

Royal College of Paediatrics and Child Health

Royal College of Paediatrics and Child Health Consolidated statement of cash flows For the year ended 31 August 2022

Royal College of Paediatrics and Child Health Balance sheet

For the year ended 31 August 2022

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

1 Accounting policies

a) Statutory information

b) Basis of preparation

c) Public benefit entity

d) Going concern

i) Allocation of support costs

l) Operating leases

n) Listed investments

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

1 Accounting policies (continued)

o) Stocks

p) Debtors

q) Cash at bank and in hand

s) Financial instruments

t) Pensions

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

4a Analysis of expenditure (current year)

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

4b Analysis of expenditure (prior year)

Royal College of Paediatrics and Child Health Notes to the financial statements For the year ended 31 August 2022

8 Related party transactions