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2022-12-31-accounts

FPM Annual Report and Accounts

For the year ended 31 December 2022

Registered in England and Wales as a Charity (1130573) and a Company (6870644)

Faculty of Pharmaceutical Medicine 19 Angel Gate, 326a City Rd, London, EC1V 2PT

Contents

Contents
Foreword from the President 1
Foreword from the Chief Executive 2
Board of Trustees’ Report 4
Our purpose 4
Public benefit 4
Our vision 4
Our mission 4
Our values 5
FPM Strategy 2020-2022 5
Objective 1: Setting standards for training in pharmaceutical medicine 6
Objective 2: Promoting pharmaceutical medicine to create trust in the specialty nationally and
internationally 7
Objective 3: Supporting and engaging members in their practice 10
Objective 4: Develop FPM as a sustainable and influential organisation 10
Engaging our members and stakeholders 13
FPM Celebrates 17
Future Plans 18
Financial Review 19
Income 19
Expenditure 19
Movement in funds 19
Financial outlook 19
Reserves policy 20
Investment policy 20
Investment performance 21
Pay policy 21
Risk management 22
Fundraising 22
Reference and Administrative Details 22
Status 22
Other name 22
Trustees 22
Chief Executive 23
Principal advisors 23
Registered office and operational address 23
Structure, Governance and Management 23
FPM Board of Trustees 24
Related parties and connected organisations 25
Statement of the Trustees’ Responsibilities 26
Auditors 27
Independent auditor’s report 27
Statement of Financial Activities 32
Balance Sheet 33
Statement of Cash Flows 34
Notes to the Financial statements 35

Foreword from the President

Dr Flic Gabbay

My first full year in office started while we were still in lockdown, then moving into a difficult time for the NHS backlog and a financially challenging economy with an increase in inflation in UK to 11.1% in October 2022 and recession only missed by 0.1%!

Nonetheless, the visibility of pharmaceutical medicine continues to rise. The recognition, after COVID, of how important pharma and the life science sector is to the UK has put many pharmaceutical physicians into the spotlight nationally and globally. The two sectors in which the majority of FPM membership work, are the nonmanufacturing parts of biopharma and its service sectors (employing some 85,000 people)[1] . It is estimated there are over 4500 physicians in these sectors in UK alone, often fulfilling critical leadership roles. This is further acknowledged by FPM’s extensive programme of meetings, on many topics, with national organisations of the 4 nations, AMS, AoMRC, GMC, NHSE, NIHR, DHSC, BPS, OLS and many more[2] . The emergence of COVID treatments led the Chief Medical Officer England inviting us to summarise them and FPM was prompted by the Chief Scientific Adviser to run a sponsored multidisciplinary workshop across pharma, academia, government, regulatory and patient associations (DEMENDE[3] ). The resulting report made recommendations for change to COVID research, regulatory assessment and access.

In a busy and varied year for policy work, FPM also contributed to an extensive piece of work on sepsis for AoMRC which is now being adopted into NICE guidance. The Rare Disease Expert Group ran two webinars and collaborated with AMS on a workshop on Clinical Trials for Rare and Ultra-rare diseases. FPM gave evidence to the Birmingham Health Partners Report on The Healthy Mum, Healthy Baby, Healthy Future: The Case for UK Leadership review and we were co-authors of the Menopause Practice Standards with the British Menopause Society. Clinical trials and devices MHRA consultations were also supported, as was the GMC Good Medical Practice Review consultation and EDI projects and the CPSA[4] initiative with BPS. Medical undergraduate training in pharmaceutical medicine is also continuing and expanding.

The journal clubs, fireside chats, webinars and the Annual Symposium and Education Day offer members valuable updates. Broadened membership criteria recognising some international qualifications as equivalent to DPM has been introduced. FPM Global has explored initiatives to provide education and examinations internationally (initially focussing on the USA, Australasia, Middle East and Africa). The Board of Examiners have maintained the online examinations and the online DPM training and PMST is migrating to the new curriculum with new assessment days for potential trainees.

Financially, FPM has been hit hard like all colleges by the impacts of the economy on investments, rising costs and a challenging trading environment. Remedial actions are being taken and FPM will be embarking on a fundraising campaign to redress the impact on our assets and allow us to further develop our charitable impacts. It is exciting that Pharmaceutical Medicine is recognised as an important contributor to public health as part of the leadership of the key Life Sciences Vision[5] and recent announcements in the 2023 Budget and the recent Pioneer report[6] provide us enormous opportunity. Our FPM 2023-2025 strategy visualises substantial growth for FPM in influence and membership and we look forward to exciting times ahead.

1 Bioscience and health technology sector statistics 2020 – Government Website 2 AMS = Academy of Medical Sciences, AoMRC = Academy of Medical Royal Colleges, BPS = British Pharmacological Society, GMC = UK General Medical Council, NHSE = National Health Service England, DHSC = Department of Health and Social Care, NIHR = National Institute of Health and Care Research, NICE = National Institute of Health and Care Excellence, OLS = Office of Life Sciences

3 DEMENDE = DEfining MEdical NeeDs and Evidence

4 CPSA = Clinical Pharmacology Skills Alliance

5 Life Sciences Vision Policy Paper – Government Website

6 Pioneer: global science for global good – Government Website

Annual report and accounts for the year ended 31 December 2022 | 1

Foreword from the Chief Executive

Dr Marcia Philbin

In 2022, FPM completed delivery against its 2020-2022 strategy. The key objectives were focused on setting standards, promoting pharmaceutical medicine, engaging members and sustaining FPM as an organisation. As it transpired, the period of 2020-2022 was dominated by the COVID-19 pandemic, forcing a shift in strategy. However, FPM’s response to the pandemic has seen the organisation not only survive but thrive. We supported our members through uncertain times and made the health of patients and communities our top priority. We also evolved as a digitally astute organisation. From the first webinar in April 2020, when we trialled GoToMeeting, to where we now offer fully online or hybrid events and examinations, the pandemic accelerated FPM’s transformation.

The formation of FPM Global and the EDI Forum sent a signal that FPM was for all physicians with an interest in pharmaceutical medicine, no matter their locality, race, gender, nationality or sexuality. The importance of diversity in clinical trials was brought into sharp focus by the COVID-19 pandemic and pharmaceutical physicians were at the forefront in championing new ways of reaching underserved communities. The EDI Forum was active, and outputs include videos, webinars and blogs marking specific days in the calendar year. Its landmark 2021 video “Where are you from?” was reshared many times across social media.

Though the members of FPM are physicians, we recognise that our members work in multidisciplinary teams, with pharmacists and scientists, where they collaborate to develop and deliver new medicines. We want to ensure that all those involved in pharmaceutical medicine have the knowledge to be effective in their roles. Consequently, approval was given in 2022 to open the Certificate of Pharmaceutical Medicine to eligible non-physicians.

Another key milestone for FPM was the launch of the Women in Pharmaceutical Medicine report, which explored potential barriers that may hinder women in their careers. This was a first for FPM and we thank the Royal Society of Chemistry for funding the project. There was a specific workstream focusing on the unique barriers that black women encounter and it was very interesting, if sometimes distressing, listening to their voices.

There was much to celebrate in 2022, including several FPM members receiving recognition in the New Year’s Honours list, some becoming Fellows of the Academy of Medical Sciences, and FPM being shortlisted as well as winning at both the Association Excellence and Memcom Excellence Awards.

We managed to fulfil some of our objectives for 2022 but the main success was spearheading a policy led exploration of the use of antivirals in treating COVID-19, developing brand new in-company training programme with a US based company, developing an eLearning module on investigational medicine with RCP London and starting the process to implement FPM’s new Learning Management System as well as a new Customer Relationship Management system.

I must finish with the end of an era following the passing of Her Majesty Queen Elizabeth II. The country came together in solidarity to celebrate a remarkable life. Our past President, Professor Alan Boyd reflected on when he met her. I had the pleasure of attending the Queen’s Garden Party in 2018 and I will cherish the experience forever. Thank you, Ma’am.

Annual report and accounts for the year ended 31 December 2022 | 2

----- Start of picture text -----
February March
January
Sharon McCullough appointed FPM’s message of support to
Members honoured in News
as the new Director of Training colleagues and people in
Year honours list
and Development Ukraine
May
April May
EDI in Focus: Yale School of
FPM statement on Professor Advancing the Frontiers in
Public Health webinar on
Ben Goldacre’s independent Gene Therapy and Rare
leading the way in Diversity,
health data report Diseases webinar
Equity, Inclusion and Belonging
May July
Professor Peter Stonier and Dr June FPM Awards: President Medal
Steve Lockhart were awarded Professor Alan Boyd and
Education Day – The Real Deal
fellowship of Academy of Volunteer Award Professor
Medical Sciences Penny Ward
August September
September
FPM expands routes to Women in Pharmaceutical
Queen Elizabeth II dies
membership Medicine report published
October December
November
Fireside Chat with Marc Botanical Origins of
Watson: From surviving to FPM Annual Symposium Pharmaceutical Medicine with
thriving with my mental health Alan Boyd
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Annual report and accounts for the year ended 31 December 2022 | 3

Board of Trustees’ Report

The trustees are pleased to present their annual report together with the audited financial statements for the financial year ended 31 December 2022. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice – Accounting and Reporting by Charities (SORP FRS 102).

Our purpose

To advance the science and practice of pharmaceutical medicine by working to develop and maintain competence, ethics and integrity and the highest professional standards in the specialty for the benefit of the public.

Public benefit

The charitable purposes of The Faculty of Pharmaceutical Medicine (FPM) are set out in the Memorandum and Articles of Association and are:

Pharmaceutical medicine is the medical specialty concerned with the discovery, development, evaluation, licensing and monitoring of medicines and the medical aspects of their marketing.

FPM seeks through its activities to bring about an improvement in the health of the public and patients. Our activities seek to advance the science and practice of pharmaceutical medicine by contributing to the provision of effective medicines for public benefit. The trustees regularly review the aims, objectives and activities of the charity referring to the Charity Commission’s guidance on public benefit.

Our vision

A world where effective medicines meet the needs of patients.

Our mission

To advance the science and practice of pharmaceutical medicine for the benefit of the public.

We will do this through four strategic priorities:

Annual report and accounts for the year ended 31 December 2022 | 4

Our values

How we deliver the strategic objectives will be guided by the following values that will guide staff and members’ behaviour:

We are: This means:
Professional Being accountable for our work and actions
Innovative Seeking solutions proactively
Caring Treating everyone with dignity
Collaborative Working positively with others
Credible Being honest and ethical in our work
Learned Investing in developing knowledge andskills

FPM welcomed Dr Kamlesh Sheth to the Board of Trustees as the new Treasurer and Dr Ado Muhammad as a Fellow Trustee and first Nigerian to serve on the Board.

FPM Strategy 2020-2022

2022 was the final year of Strategy 2020-2022 and delivery against the objectives continued to be dominated by the response to the COVID-19 pandemic, principally the DEfining MEdical Needs and eviDEnce’(DEMENDE) project.

The four strategic objectives of the strategy were:

  1. Setting standards for training in pharmaceutical medicine

  2. Promoting pharmaceutical medicine to create trust in the specialty nationally and internationally

  3. Supporting and engaging members in their practice

  4. Develop FPM as a sustainable and influential organisation

So what did FPM achieve in 2022?

Annual report and accounts for the year ended 31 December 2022 | 5

Objective 1: Setting standards for training in pharmaceutical medicine

The Office of the Board of Examiners oversees the standards and delivery of examinations administered by FPM.

In 2022 it was agreed to open up the Certificate of Pharmaceutical Medicine (CPM) examination to non-physicians to ensure that all those working in pharmaceutical medicine have the opportunity to evidence the standards to which they work. The Diploma in Pharmaceutical Medicine (DPM) remains an examination that only physicians will be able to undertake. The examinations were successfully delivered with most candidates participating remotely via the TestReach system and with three candidates opting to sit the papers in the FPM office.

Diploma/Certificate in Pharmaceutical Medicine

46 Candidates sat CPM (DPM part 1) exam 24 candidates passed (52% pass rate) – the usual range is 50-60%

28 candidates sat DPM part 2 exam (SAQ paper)

There were 13 international C/DPM candidates

Annual report and accounts for the year ended 31 December 2022 | 6

Diploma/Certificate in Human Pharmacology

Pharmaceutical Medicine Specialty Training (PMST)

The GMC’s annual national training survey went live between 22 March 2022 and 17 May 2022 with 82% of FPM trainees and 70% of ESs completing the survey. The overall satisfaction of trainees and ESs was 80% and 72.5% respectively.

Objective 2: Promoting pharmaceutical medicine to create trust in the specialty nationally and internationally

FPM continues to raise awareness of and advocate publicly for the science and practice of pharmaceutical medicine and the benefits that the specialty can bring to the health of global populations.

Policy and communications

During 2022 we have continued to support a public understanding of the COVID-19 pandemic, with a particular focus on antiviral treatments and their deployment. In order to harness the expertise of our members, along with other stakeholder groups, FPM developed the COVID-19 ‘DEfining MEdical Needs and eviDEnce’ (DEMENDE) multidisciplinary workshops. The outputs from the workshops have suggested approaches to encourage, incentivise and innovate in R&D and optimise the use of medical interventions in COVID-19 healthcare.

Annual report and accounts for the year ended 31 December 2022 | 7

To support objectives to promote pharmaceutical medicine, a series of three webinars were delivered in conjunction with the ABPI to help medical directors and other leaders in embedding the ABPI Principles within their organisations. The sessions focused on: an Introduction to the ABPI Principles; the ‘Patients’ principle; and the Integrity, Transparency and Respect principles.

The Policy and Communications Group and associated expert groups have also been busy throughout the year responding to a number of important public consultations as follows:

----- Start of picture text -----
MHRA NICE
Medical Device Regulation UK Government Multiple STA/MTA for
Future of UK Clinical Trials Equity in medical devices COVID-19 Therapeutics
regulation Menopause guidance
British Menopause Society
General Medical Council
Menopause Practice
Good Medical Practice
Standards
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FPM Global

FPM Global was launched as a new committee in 2021 to provide leadership in establishing pharmaceutical medicine as a global medical specialty and to increase FPM’s global reach through the creation of a network of pharmaceutical physicians who work outside of the UK. In 2022, under the direction of the Chair, Dr Viraj Rajadhyaksha, plans were scoped and agreed to focus on the following:

The work of FPM Global is still in the embryonic stage but there have been some notable successes. In June, the President, Dr Flic Gabbay, attended a meeting with FPM members and non-members in San Diego, USA where they reviewed the current offering to overseas based pharmaceutical physicians, especially the lack of training and educational development opportunities for new entrants as well as current members. In October, Professor Peter Stonier presented a session entitled “From training to trusting” at IFAPP’s International Conference on Pharmaceutical Medicine 2022 with PMST Trainee, Dr Jaya Chidambaram who spoke about her experience of the PMST training programme.

Annual report and accounts for the year ended 31 December 2022 | 8

In November, Dr Penny Ward presented at the Australian Association of Pharmaceutical Industry Professionals and the Medical Affairs Professional Society joint workshop which was organised by Dr Victoria Elegant. Dr Ward presented a summary of the educational provision of FPM.

The President accepted an invitation to present on the Pharmasteer programme in December. The programme is co-organised by a medical school in India and an industry sponsor with the aim of introducing medical graduates in India to practical topics relating to medical affairs.

FPM Designated Body

FPM is a Designated Body for providing annual appraisals and GMC revalidation. On 31 December 2022, 668 members had a prescribed connection to FPM as a designated body, the highest number of connected doctors since the introduction of revalidation at the end of 2012.

There has continued to be a greater focus on health and wellbeing at the appraisals during the pandemic and, with NHS England (NHSE) and GMC backing, there continues to be considerable flexibility for doctors whose lives have been impacted either personally or professionally by the pandemic. This rebalancing and support has been appreciated by our doctors. NHSE guidance continues to allow appraisals to take place via video conference. In order to understand the impact of video appraisals we undertook a survey with our appraisers, and it showed there was almost unanimous support by appraisers for consideration of appraisals by videoconference to be permitted for at least some of the appraisals in each cycle. The results provided strong reassurance that the quality and benefit of appraisals has not been compromised by the need to undertake appraisals remotely during the pandemic.

During the 2022/23 appraisal year, 111 doctors connected to the FPM designated body and 72 disconnected. Those doctors coming to us from the NHS join us with first-hand experience of the huge challenges the NHS has faced during the pandemic – and continues to face. A number of our doctors have continued to support the covid vaccination program.

We were very pleased to welcome Dr Liz Clark to join the Appraisal Lead team alongside Dr Asad Khan and Dr Mike Perkins, as Dr Sharon McCullough stepped down during the year to take on the role of Director of Training and Development at FPM. Quarterly meetings with the Appraisal Leads continue to be valuable for ensuring consistency and generating quality improvement ideas. For example, there has been a collaborative effort in producing new online guidance for completing the PReP Input Form, which we hope will help to make the process more straightforward. The new guidance, ‘ How To Complete Your Input Form’ , can be viewed here. The Appraisal Leads also deliver an online introduction to appraisal and revalidation every six weeks. This is mainly for newly connecting doctors, but it is open to all connected doctors, in case they need a refresher. We are fortunate to have 79 highly enthusiastic appraisers. Of these, we have 20 appraisers who are connected to other designated bodies including, for example, in the NHS. This helps to ensure similar standards across pharma and benchmark with other designed bodies. We have greatly valued the advice and input we have received from our Lay Advisor William Payne throughout the year.

Annual report and accounts for the year ended 31 December 2022 | 9

Objective 3: Supporting and engaging members in their practice

The DPM Training Programme was delivered successfully for the third year. The programme is being converted to a new digital format that will be delivered from FPM’s new learning management system (LMS), the FPM Learning Hub, from 2023.

Professor Penny Ward and Dr Sharon McCullough collaborated with the Royal College of Physicians to develop the content for an eLearning module titled, “Working with Investigational Medicines”, which is one of a series of courses that aims to develop clinical research skills in medical professionals on behalf of NIHR.

Professor Ward and Dr Jeymi Tambiah co-created and delivered FPM’s first bespoke in-company Physicians Onboarding Development programme for a pharmaceutical company based in the US. The successful programme was delivered twice and has been recommissioned for 2023.

In addition, the first in a new series of Masterclasses, The Fundamentals of Patient Engagement for Pharmaceutical Physicians was launched and followed on from a successful panel discussion on how to embed patient engagement in practice for pharmaceutical physicians.

Objective 4: Develop FPM as a sustainable and influential organisation

To ensure its future sustainability, FPM is investing in its digital infrastructure which will enable it to streamline its processes, increase its efficiency and deliver a more modernised approach to its members to foster greater engagement.

Currently, FPM is delivering two major change projects: the Customer Relationship Management system (CRM) and the Learning Management System (LMS) which will both be completed in 2023. FPM would like to thank the Dinwoodie Charitable Trust for its generous donation towards the cost of implementing both the CRM and the LMS which we will receive in 2023.

As at 31 December 2022 FPM has 1573 FPM members in 39 countries with 80% based within the United Kingdom and 20% based in other countries. The members of FPM are its lifeblood and attention has been focused on increasing the membership across all categories. Membership has grown by 2.3%, the second year of growth following a slow decline since 2014. Our strategy to increase the number of Members (MFPM) has been successful, leading to growth in the number of MFPM for the first time since 2013.

Annual report and accounts for the year ended 31 December 2022 | 10

There is also significant growth in the Affiliate membership, but the number of Fellows has declined and reversing this trend will be a focus for 2023. The retention rate has remained at 95.5% which is excellent compared to industry standards.

FPM Membership (excluding Honorary)

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1800
1600
77
103 100 98 92 85
1400
436 459 462 460 501 526 1200
Associates
1000
Affiliates
379 339 320 317 318 344 800 Members
600 Fellows
400
609 619 622 620 630 626
200
0
2017 2018 2019 2020 2021 2022
Membership Numbers
----- End of picture text -----

The equality, diversity and inclusion (EDI) agenda, led by Dr John Ndikum, continues to be a crosscutting theme across all functions and receives high engagement from the membership where EDI members volunteer on event, policy and project working groups to ensure outputs are accessible to the spectrum of the membership. EDI Forum members have contributed to various FPM consultation responses, including the submissions for the GMC’s Good Medical Practice consultation and the UK government’s Equity in Medical Devices consultation.

The EDI Forum delivered several online events this year including a webinar with the Yale School of Public Health about their pioneering EDI initiatives, as well as several Fireside chats - with Dr Marc Watson for World Mental Health Day 2022 and with Lamont Terrell for Black History Month 2022. Multiple blogs were published by the EDI Forum including a piece about ‘Diversity in Action’ about working in a diverse organisation, authored by Forum member Dr Ansuya Naidoo for the World Day for Cultural Diversity for Dialogue and Development. FPM marked several observances for the first time with written pieces; Dr John Ndikum penned an article about the Windrush Generation for Windrush Day 2022, and FPM interviewed a number of FPM Fellows for Pride and South Asian Heritage Month.

PM launched the Women in Pharmaceutical Medicine report, which evaluated potential differences in the experience and barriers in the career progression of women in pharmaceutical medicine and we thank the Royal Society of Chemistry for funding this important work. A specific workstream to explore the experiences of black women was also developed to address the intersectionality of race and gender.

Annual report and accounts for the year ended 31 December 2022 | 11

Annual report and accounts for the year ended 31 December 2022 | 12

FPM is a member of the Inequalities in Health Alliance, which is led by RCP London, and continues to contribute to its advocacy work. FPM also became a member of the UK Health Alliance on Climate Change.

An important project on making membership accessible to those working as pharmaceutical physicians was led by the Routes to Membership Working Group which reviewed the criteria for the award of Membership (MFPM) and resulted in the widening of the number of qualifications which will be accepted for the award of MFPM.

FPM’s Strategy 2020-2022 was delivered against the turmoil caused by the COVID-19 pandemic, but it helped to spearhead FPM’s modernisation to expand the number of services and products it offers. This evolution and modernisation continues with our new Strategy 2023-2025.

Engaging our members and stakeholders

FPM Events

FPM’s holds both free and paid-for events throughout the year. The popularity of our online events means we will continue to run them alongside our face-to-face activities. Our aim is to deliver a varied programme of events which are accessible and relevant to all our members, as well as to interested non-members. 2022’s Annual Symposium was our first fully hybrid event, running both in person in London and online.

We wanted to make sure our online delegates had an equivalent experience to those attending inperson so we invested in a fully hosted online platform that allowed our delegates to network, move between sessions and ask questions.

Going forward we expect to run more hybrid events as they give our members the opportunity to meet in person or the convenience of attending online. Many of the events are eligible for CPD and are available on FPM On Demand for members and non-members to catch up at their convenience.

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A summary of the events undertaken by FPM in 2022 is provided below:

Events Training Free to attend events
FPM Annual Symposium 2022
(hybrid): Can we? Should we? –
Fostering trust through ethical
practice		 Preparing for the Diploma in
Pharmaceutical Medicine
(DPM) Exam: online (free)		 Fireside chat with Dr Bu
Siakpere: improving EDI in our
day-to-day practice: online
FPM Education Day 2022 (in
person): The Real Deal - The use
of real world evidence in
pharmaceutical medicine		 DPM Training Programme:
online		 Fireside Chat with Marc
Watson: From surviving to
thriving with my mental
health: online
Advancing the Frontiers of Gene
Therapy and Rare Diseases:
online		 Managing Medical
Emergencies in Human
Pharmacology: online		 Fireside Chat with Lamont
Terrell: From Medicinal
Chemist to Diversity
Champion: online
The Code in a Day: a guided
tour of the ABPI Code of
Practice: online		 EDI in Focus: Yale School of
Public Health on leading the
way in Diversity, Equity,
Inclusion and Belonging:
online

FPM’s virtual Journal Club continues to be popular with members. Papers debated at Journal Club for this reporting period:

Annual report and accounts for the year ended 31 December 2022 | 14

FPM Annual Symposium Can we? Should we? – Fostering trust through ethical practice

Our November Symposium is our flagship event and an important opportunity for our members to feel connected to their professional body and to each other. This year we explored how pharmaceutical physicians can continue to improve trust in the industry and medicines, across diverse communities, governments and the life-sciences ecosystem, by embedding ethical practice in all that we do. We were delighted to hear important insights from high profile speakers including Professor Sir Chris Whitty, Professor Ben Goldacre, Dr Ian Hudson, Dr Lode Dewulf, Prof Raanan Gillon and Trishna Bharadia.

Annual Symposium delegate feedback

When surveyed shortly after the event, 95.35% of in-person delegates said FPM Annual Symposium 2022 was ‘good’ or ‘very good’ value for money, and when prompted to describe their experience of the event they picked out the following words from a list (larger words were more popular).

We also asked delegates to give additional feedback and below are just a few of the responses, which we share with the responders’ consent. These comments were typical of the glowing feedback we received both via survey and informally.

“It was a thoroughly enjoyable event and clearly a great deal of thought and preparation went into the meeting.”

“Much appreciate the organisation - a massive task.”

"One of the best symposiums I have attended.”

Annual report and accounts for the year ended 31 December 2022 | 15

FPM communications

FPM’s communications continued to thrive in 2022, with an increase in the number of blogs, covering a range of topics. These are supported by regular email communications, including our monthly bulletin, via Mailchimp. These keep members informed and up to date and retain very high levels of engagement vs. industry standards.

FPM Website sessions by date 2022

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1200
1000
800
600
400
200
0
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FPM continues to engage an expanding audience via social media, delivering thought leadership, links to articles, and posts of FPM statements, event notices and other activities. Our website continues to be a vital source of information to the pharmaceutical medicine community, reaching over 100 thousand annual sessions for a third consecutive year. This is more than double the c.50,000 annual sessions we typically saw with our previous website that was retired in early 2020 and demonstrates a sustained ROI for the current site.

The FPM LinkedIn page remains a key tool in our digital communications. This audience has been developed organically and the most popular posts have been ones which have celebrated the achievements of our members, e.g. during the Annual Awards in June. Our Twitter presence is also being amplified by increasing support from key stakeholders.

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FPM Celebrates

2022 marked the 20th year that pharmaceutical medicine was recognised as a UK medical specialty and today as a global discipline, there is increasing demand for pharmaceutical physicians to work or travel abroad.

In 2022, the FPM President’s medal was awarded to Professor Alan Boyd. Professor Boyd has been associated with the FPM since its inception in 1989, and as a former President, he has been an ardent advocate of ensuring that the standards for pharmaceutical medicine are equivalent to those of any other clinical specialty. In 2021, Professor Boyd was awarded Fellowship at the Academy of Medical Sciences for his contributions to medical science and medicine. In 2021, Professor Boyd gifted FPM with the BaxterBoyd DPM training programme and this enduring legacy, his commitment and passion towards educating the next generation of pharmaceutical physicians are duly recognised with the award of President’s medal.

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Alan Boyd
Awardee, President’s Medal
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FPM President’s Medal

We celebrated the award of Fellowship to the Academy of Medical Sciences for Professor Peter Stonier and Dr Steve Lockhart. FPM’s President, Dr Flic Gabbay was also made an Honorary Fellow of the British Pharmacological Society. New awards were launched in 2022 to recognise academic achievement and excellence, and commitment to FPM and pharmaceutical medicine.

It was another successful year for industry awards for FPM, which was shortlisted in several categories. We thank our staff and volunteers who have contributed to FPM in various capacities and received the deserved recognition from their peers.

The Chief Executive, Dr Marcia Philbin picked up the Highly Commended award in the hotly contested CEO Leadership category at the 2022 Memcom Excellence Awards. FPM was shortlisted also for the Best Integrated Marketing Campaign for PMST.

In the Association Excellence Awards, FPM was shortlisted in three categories: Best Association Newsletter, Blog, Online or Physical Publication (circulation up to 6,500), Association Leadership Award and the Best Longstanding Event, in which FPM won the silver award.

Annual report and accounts for the year ended 31 December 2022 | 17

Future Plans

FPM has launched its strategy for 2023-2025, where the focus will be on three pillars of Trust, Sustainability and Relevance.

FPM will launch its new learning management system called FPM Learning and unleash the newly revamped DPM Training programme as eLearning modules. The new CRM will be launched in 2023 and will support FPM as it modernises its processes to deliver greater efficiency and value to its members.

If three change programmes were not enough, FPM will also focus its efforts on growing its membership, especially in the Member and Fellow categories, as it is important it strengthens its pipeline of members. FPM Global will continue to emerge as an important workstream and the EDI Forum will continue to support the delivery of important initiatives, especially the fair training initiative with the GMC. We look forward to the launch of our new podcast and hearing from inspiring pharmaceutical physicians on a range of topics.

An important activity will be to relaunch the FPM values so that we bring to them life and show we care about collaborating to innovate in how we deliver learning to train credible professionals in pharmaceutical medicine.

It is an exciting time to be a pharmaceutical physician so come and join us on our journey!

Thank you

Finally, once again FPM would like to extend thanks to all our members who contributed to our activities in 2022, whether as committee members, examiners, specialty advisers, educational supervisors, appraisers or by supporting raising awareness and advocacy events and policy projects. We truly value your participation and support.

Annual report and accounts for the year ended 31 December 2022 | 18

Financial Review

As at 31 December 2022 FPM's accounts showed an operating loss £172,384 (2021: operating surplus of £2,264) before investment losses of £168,027 for the 12 months (2021: gains of £96,337). Therefore, there was a loss after investment losses of £340,411 (2021: gain of £98,601).

FPM’s operating loss of £172,384 compares to a budgeted deficit of £63,531 for 2022, a variance of £108,853. The main reason for the variance was missed income budgets with PMST, examinations, events and training all missing income growth targets. Expenditure was marginally down on budget.

Income

Income received was £1,840,185, up 3% or £53,879 on the previous year, but £112,500 below budget expectations. Membership subscriptions and income from revalidation services where above budget as membership continues to grow and the number of doctors connected to FPM’s Designated Body reached a new high of 668 in 2022 (2021: 629). However, while income from training, examinations and events was up on the previous year, we did not achieve the targeted growth in these areas. FPM did not find new tenants for the sub-let at our Angel Gate offices during 2022 and we continue to advertise this space for rent.

In 2022 the proportion of income received relating to education and standards was 68% (2021: 69%) and the proportion of income received from membership subscriptions was 30% (2021: 29%).

Expenditure

Expenditure increased by 13% to £2,012,569, an increase of £228,527 on the previous year and marginally down on budget.

Expenditure increased as we invested in staff, hiring a Digital Communications Coordinator and contracting a new Director of Training Development. We spent more on event venues as both the Education Day and Symposium were held in person, and on additional trainer fees to support the successful DPM training programme.

In 2022 the proportion of expenditure relating to education and standards was 74% (2021: 75%), for communication and advocacy 9% (2021: 16%) and for membership support activities 17% (2021: 8%). The proportion of expenditure for communications and advocacy went down and up for membership in 2022 due to changes in salary allocations.

Movement in funds

The net income and movement in funds was down £340,411 (2021: up £98,601) and as at 31 December 2022 the total funds are £761,423 (2021: £1,101,834). These are comprised of £269,680 of designated funds, £491,743 of general funds and no restricted funds.

Annual report and accounts for the year ended 31 December 2022 | 19

Financial outlook

In 2022 we improved our offering, attracting new members, candidates for our examinations and delegates for our events and training course, but we did not achieve the planned increase in income of 10%. FPM will prioritise income generation in 2023 with a particular focus on education and examinations, to improve the financial position. We will continue to promote membership, attendance at our events and the benefits of education and we will increase income by introducing new products, such as training, and by increasing the numbers accessing our current offerings such as DPM training and examinations.

The planned replacement of our customer relationship management and online booking system began in 2022 and will go live in June 2023. This is funded in part by a grant of £37,000 which we will receive in 2023 with the remaining funding of £240,000 taken from reserves. FPM has also introduced a new learning management system which we are using to deliver a redeveloped DPM training programme to audiences located across the globe as well as in the UK. This is funded solely by a grant.

FPM will continue to invest in its staff and a Digital Communications Coordinator joined in 2022 to support the increasing volume and diversity of communication activity with which FPM is involved. We also invested in specialist expertise with a new Director of Training and Development hired to support the planned growth in training and to oversee the redevelopment of the DPM training programme.

Reserves policy

FPM’s policy is to hold certain level of free reserves. The term free reserves includes the General Fund and the Development Appeal Fund but excludes Restricted and Endowment funds. It also excludes funds which, although classified as unrestricted, have been designated for specific purposes and which represent a real future liability and definite commitment.

The trustees have identified the following reasons for holding reserves:

Considering the above factors, the trustees have determined that at the present time, it is appropriate to hold free reserves equivalent to six-months to one year of FPM’s annual operating costs (for 2023 £1,095k- £2,189k). The policy on reserves is reviewed annually in conjunction with FPM's strategic planning, financial and risk management processes.

As at 31 December 2022 FPM's total free reserves amounted to £521,339 (£982,328 at the start of the period). The current level represents approximately 3 months' operating costs based upon budgeted expenditure for 2023. In addition to this, a sum of £240,084 (2021: £117,790) has been designated in the year as a Tangible Fixed Asset fund and represents the net book value of those

Annual report and accounts for the year ended 31 December 2022 | 20

assets and is therefore not available to meet future expenditure. The trustees have designated £29,596 of free reserves (£29,596 also at the start of the year), which represents the balance of funds remaining from the Development Appeal in 2002, setting these funds aside at the trustees’ discretion for development projects. The balance of unrestricted funds £491,743 (2021: £952,732) are general funds available to fund day to day operations. There were no restricted funds in 2022 (2021: £1,716).

Investment policy

FPM’s investment policy is reviewed once a year, or more frequently should the need arise. FPM's overall investment aims are to allow reasonable growth whilst also maximising security. FPM seeks capital growth from its invested funds, and it is envisaged that any income generated will be reinvested in the fund. Investment Policy is to minimise risk and ensure security of the funds balanced by a reasonable opportunity for capital growth. Funds are spread between cash and collective funds of stocks and bonds, with the proportional allocation to investment type and geographical region determined by expert independent advice. Investment decisions will be made with a minimum fiveyear horizon.

The monitoring of investments is the responsibility of the Treasurer and Finance Committee. When making major changes to the investment arrangements the trustees seek external advice. The trustees will review the ethical policy of the fund management provider prior to purchase of any investment, to ensure that the proposed investments are in alignment with FPM’s mission. It is not the intention of FPM to be overly prescriptive of what stocks can and cannot be included.

Investment performance

Clarity Ltd provides FPM with formal investment reviews on an ongoing basis. The trustees commission an independent review of its investments approximately every five years and the most recent review was undertaken in 2019.

The market value of FPM’s investments was £837,640 at 31 December 2022 compared a value of £1,000,016 at 31 December 2021. This includes a net loss on investments of £168,027 representing a loss of 16% in the year. The value of FPM’s investments has increased by 21% over a five-year period excluding cash transfers in and out during this period (31 December 2017: £690,776).

Pay policy

The pay of employed staff is reviewed annually, and any increases are agreed by the Renumeration Committee behalf of the trustees. Increases are usually in accordance with average earnings, but the trustees may award additional increases from time to time if justified. A remuneration benchmark report is commissioned by the trustees periodically from an independent organisation to compare pay with similar roles in the voluntary sector and FPM commissioned a remuneration benchmark report in 2022.

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Risk management

During 2022 the trustees identified and reviewed the major risks to which FPM could be exposed. A risk register is maintained by the Chief Executive and systems to manage those risks have also been reviewed and established where necessary. Risks associated with new projects are identified through a project planning process.

The trustees had identified that the most significant current risks continue to be the financial risks associated with maintaining FPM’s premises and the associated increase in running costs. These risks have been mitigated where possible by controlling expenditure, especially related to servicing FPM’s premises, and projects to grow current activities and develop new ones to support FPM’s strategic aims. The trustees will monitor the overall financial position and progress carefully during 2023 and beyond.

Fundraising

FPM is not a fundraising charity with income deriving primarily from membership fees, exams, training and events. FPM is therefore not registered with the fundraising regulator, although we follow their guidance when relevant.

Reference and Administrative Details

Status

The Faculty of Pharmaceutical Medicine of the Royal Colleges of Physicians of the United Kingdom (FPM) was founded in 1989 and registered as a charity in 1992, Charity number 1130573. FPM became a charitable company on 1 November 2009, Company number 06870644.

Other name

The Faculty of Pharmaceutical Medicine (FPM).

Trustees

The trustees who served since 1 January 2022 are listed below:

President: Dr Flic Gabbay
Vice President: Dr Sheuli Porkess
Registrar: Dr Chris Worth
Treasurer: Dr Kamlesh Sheth (from November 2022)
Treasurer: Dr Peter Feldschreiber (to November 2022)
RCP London Trustee: Dr Robert Unwin
RCP Edinburgh Trustee: Professor Angela Thomas
RCP&S Glasgow Trustee: Dr Gerard McKay
Lay Trustee Mr William Payne
Lay Trustee Professor Alan Cribb

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Dr Assem el Baghdady Dr Emma Harvey Dr Neil Snowise Dr Craig Hartford Dr Ado Muhammad (from November 2022) Dr David Jefferys (to November 2022)

Chief Executive

Dr Marcia Philbin

Principal advisors

Accountants: JS2 Limited, One Crown Square, Woking, Surrey GU21 6HR Auditors: Sayer Vincent LLP, Chartered accountants and statutory auditors, Invicta House, 108 -114 Golden Lane, London EC1Y 9TL Investment advisors: Clarity Ltd, One Crown Square, Woking, Surrey GU21 6HRCCLA Investment Management Ltd, 80 Cheapside, London EC4P 4DQ Bankers: C Hoare & Company, 37 Fleet Street, London EC4P 4DQ Solicitors: Hempsons Solicitors, 40 Villiers Street, London WC2N 6NJ

Registered office and operational address

19 Angel Gate, 326a City Road, London EC1V 2PT

Structure, Governance and

Management

The organisation is a charitable company limited by guarantee, incorporated on 6 April 2009 and registered as a charity on 15 July 2009. On 1 November 2009, the assets, liabilities and operations from the unincorporated charity, which had been registered in 1992, were transferred to the charitable company.

The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In addition, regulations have been agreed by the trustees.

Members of FPM recognised as voting members under the Companies Act are ordinary Fellows and full Members.

Annual report and accounts for the year ended 31 December 2022 | 23

Associate members are those enrolled in the Pharmaceutical Medicine Specialty Training Programme and Affiliate membership is open to any physician who works in or has a professional interest in pharmaceutical medicine.

As at 31 December 2022, the number of members in each category were as follows:

2021 2022
UK Fellows 386 382
International Fellows 142 137
Honorary Fellows 102 107
Total number of Fellows 630 626
UK Members 221 236
International Members 76 86
Honorary Members 21 22
Total number of Members 318 344
UK Associate members 83 76
International Associate members 2 1
Total number of Associate members 85 77
UK Affiliate members 442 465
International Affiliate members 59 61
Total number of Affiliate members 501 526
Total number of members 1534 1573

FPM Board of Trustees

The FPM Board, as trustees of the charity and directors of the company, are responsible for the overall management and administration of the organisation. All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in Note 3 to the accounts.

Members of the Board are the President, who is the Chair, the Vice President, the Registrar, the Treasurer, the Presidents of the three parent colleges (or their nominees), five Fellows and/or Members and two Lay members. All members of the Board are trustees and directors and have full voting rights.

The President and Vice President, who must be Fellows, are elected every three years by a ballot of all Fellows and Members. Neither President nor Vice President may serve for more than one term of office. Appointed trustees, including the Registrar and Treasurer, are appointed by the Board through a transparent process and in accordance with the Regulations. The term of office is three years and re-appointment does not normally exceed six years in total. Trustees from the parent colleges are nominated by their respective Presidents and Councils and serve for a maximum of six years. Elected trustees are elected by a ballot of Fellows and Members in accordance with the

Annual report and accounts for the year ended 31 December 2022 | 24

Regulations and serve for a three-year term. No elected trustee may serve for more than two consecutive terms.

All trustees are provided with an induction and ongoing training on their responsibilities and other matters as required. Trustees are encouraged to attend external governance training, and this has included training offered by FPM’s lawyers and auditors.

The Board, having agreed strategy and policy, delegates much of its work to committees within a committee governance structure. Within this structure are three governance committees (Fellowship and Awards Committee, Finance Committee and Remuneration Committee) and three operational committees or groups (Policy and Communications Group, Education and Standards Committee, and Trainees Committee). The operational committees may have subcommittees and sub-groups which report to them. Additionally, the Executive Committee acts as a link between governance and operational functions.

The day-to-day management of the organisation’s activities is delegated to the employed staff under the direction of the Chief Executive. All employees have an annual appraisal at which objectives and a development plan for the year ahead are agreed. A great many members of FPM contribute on a voluntary basis to day-to-day activities where professional input on matters relating to the medical profession or to the specialty of pharmaceutical medicine is required.

Related parties and connected organisations

FPM is a joint Faculty of the Royal College of Physicians, London (RCP), the Royal College of Physicians, Edinburgh (RCPE) and the Royal College of Physicians and Surgeons of Glasgow (RCPSG) and is a member of the Academy of Medical Royal Colleges (AoMRC). FPM shares in its parent colleges' efforts for the advancement of medical knowledge and care, consulting and collaborating with them on all appropriate matters.

The process of pharmaceutical medicine specialty training involves cooperation with the Joint Royal Colleges of Physicians Training Board (JRCPTB), the General Medical Council (GMC) and the Conference of Postgraduate Medical Deans of the United Kingdom (COPMED). This work involves the educational approval of third-party organisations for the work-based training of pharmaceutical physicians or as providers of modular courses within training programmes.

FPM's President is an AoMRC Council member. FPM pays an annual membership subscription to the AoMRC which for 2022 was £18,630.

The FPM’s President is a member of the council of the Royal College of Physicians London.

FPM is a member of the PharmaTrain Federation which provides accreditation and professional certification to ensure the competence of medicines development scientists and clinical investigators.

FPM is a member of the Forum of the Academy of Medical Sciences, the independent body in the UK representing medical science. In addition, FPM is also a member of, Memcom which supports and promotes the work of professional bodies.

Annual report and accounts for the year ended 31 December 2022 | 25

Statement of the Trustees’ Responsibilities

The trustees (who are also directors of FPM for the purposes of company law) are responsible for preparing the report of the trustees 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 of the incoming resources and application of resources, including the net income or expenditure, of the charitable company for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

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 the financial statements may differ from legislation in other jurisdictions.

Voting members of the charity (Fellows and Members only) guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 December 2022 was 841 (2021: 825). The trustees, except for the lay trustees and

Annual report and accounts for the year ended 31 December 2022 | 26

trustees from the parent colleges, are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditors

Sayer Vincent were re-appointed as the charitable company's auditors during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 11 May 2023 and signed on their behalf by

Dr Felicity Gabbay

President of the Faculty of Pharmaceutical Medicine

Independent auditor’s report

Opinion

We have audited the financial statements of Faculty of Pharmaceutical Medicine (the ‘charitable company’) for the year ended 31 December 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 charitable company 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

Annual report and accounts for the year ended 31 December 2022 | 27

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

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Faculty of Pharmaceutical Medicine's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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 contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Annual report and accounts for the year ended 31 December 2022 | 28

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s report.

Annual report and accounts for the year ended 31 December 2022 | 30

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Joanna Pittman (Senior statutory auditor)

11 May 2023

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Annual report and accounts for the year ended 31 December 2022 | 31

Faculty of Pharmaceutical Medicine of the Royal Colleges of Physicians of the United Kingdom

Statement of Financial Activities (incorporating an Income & Expenditure Account)

For the Year ended 31 December 2022

Unrestricted
Restricted
2022
Funds
Funds
Funds
Note
£
£
£
Income
Education & standards
1,235,302
9,573
1,244,875
Communications & advocacy
30,267
-
30,267
Membership subscriptions
542,894
-
542,894
Income from investments
21,284
-
21,284
Income from other trading activities
865
-
865
Total income
1,830,612
9,573
1,840,185
Expenditure on charitable activities:
Education & standards
1,470,231
11,289
1,481,520
Communications & advocacy
179,180
-
179,180
Membership support services
351,869
-
351,869
Total expenditure
2
2,001,280
11,289
2,012,569
(170,668)
(1,716)
(172,384)
Net (losses) / gains on investments
7
(168,027)
-
(168,027)
(338,695)
(1,716)
(340,411)
Total funds brought forward
1,100,118
1,716
1,101,834
Total funds carried forward
761,423
-
761,423
Income from charitable activities:
Expenditure
Net (expenditure) / income before gains on
investments
Net income and movement in funds		 Unrestricted
Restricted
2022
Funds
Funds
Funds
Note
£
£
£
Income
Education & standards
1,235,302
9,573
1,244,875
Communications & advocacy
30,267
-
30,267
Membership subscriptions
542,894
-
542,894
Income from investments
21,284
-
21,284
Income from other trading activities
865
-
865
Total income
1,830,612
9,573
1,840,185
Expenditure on charitable activities:
Education & standards
1,470,231
11,289
1,481,520
Communications & advocacy
179,180
-
179,180
Membership support services
351,869
-
351,869
Total expenditure
2
2,001,280
11,289
2,012,569
(170,668)
(1,716)
(172,384)
Net (losses) / gains on investments
7
(168,027)
-
(168,027)
(338,695)
(1,716)
(340,411)
Total funds brought forward
1,100,118
1,716
1,101,834
Total funds carried forward
761,423
-
761,423
Income from charitable activities:
Expenditure
Net (expenditure) / income before gains on
investments
Net income and movement in funds		 2021
Funds
£
1,235,638
8,600
521,088
19,385
1,595
1,830,612
9,573
1,840,185		 1,786,306
1,470,231
11,289
1,481,520
179,180
-
179,180
351,869
-
351,869		 1,345,402
291,596
147,044
2,001,280
11,289
2,012,569		 1,784,042
(170,668)
(1,716)
(172,384)
(168,027)
-
(168,027)		 2,264
96,337
(338,695)
(1,716)
(340,411)
1,100,118
1,716
1,101,834		 98,601
1,003,233
761,423
-
761,423		 1,101,834

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 11 to the financial statements. All funds have been treated as unrestricted.

Annual report and accounts for the year ended 31 December 2022 | 32

Faculty of Pharmaceutical Medicine of the Royal Colleges of Physicians of the United Kingdom Company number: 06870644 Balance sheet

As at 31 December 2022

Note
Fixed assets
Tangible fixed assets
6
Investments
7
Current assets
Debtors
8
Cash at bank and in hand
Creditors:amounts due within one year
9
Net current (liabilities)/assets
Creditors:amounts falling due after one year
10
Net assets
Funds
11
Restricted funds
Unrestricted funds:
Designated funds
General funds
Total funds		 2022
£
£
240,084
837,640
1,077,724
164,416
184,900
349,316
(632,870)
(283,554)
(32,747)
761,423
-
269,680
491,743
761,423		 2021
£
£
117,790
1,000,016
1,117,806
136,774
464,674
601,448
(566,810)
34,638
(50,610)
1,101,834
1,716
147,386
952,732
1,101,834		 2021

£
117,790
1,000,016
1,101,834
1,716
147,386
952,732
1,101,834

These financial statements are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved, and authorised for issue, by the trustees on and signed on their behalf by:-

Flic Gabbay - President

Annual report and accounts for the year ended 31 December 2022 | 33

Faculty of Pharmaceutical Medicine of the Royal Colleges of Physicians of the United Kingdom

Statement of Cash Flows

For the year ended 31 December 2022
Cash flows from operating activities:
Net income/(expenditure) for the year
Adjustments for:
Depreciation charges
Dividends and interest
(Increase)/decrease in debtors
Increase/(decrease) in creditors
(Gains)/Losses on investments
Cash flows from investing activities:
Dividends and interest
Purchase of tangible fixed assets
Additions at cost
Disposal proceeds
movement in cash held
Net cash provided by (used in)
investing activities
Change in cash and cash equivalents
in the year
Cash and cash equivalents
at the beginning of the year
Cash and cash equivalents
at the end of the year
Net cash provided by (used in)
operating activities		 2022
£
£
(340,411)
40,371
(21,284)
(27,642)
48,197
168,027
(132,742)
21,284
(162,665)
(87,504)
85,334
(3,481)
(147,032)
(279,774)
464,674
184,900		 £
98,601
33,387
(19,385)
(9,785)
(87,360)
(96,337)		 2021
£
(80,879)

81,217
19,385
(33,752)
(7,987)
103,571
-
338
464,336
464,674

Annual report and accounts for the year ended 31 December 2022 | 34

Faculty of Pharmaceutical Medicine of the Royal Colleges of Physicians of the United Kingdom Notes to the Financial Statements For the year ended 31 December 2022

1. Basis of preparation

These financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charity is a public benefit entity for the purposes of FRS 102 and therefore has also prepared the financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Charities Act 2011 and the Companies Act 2006.

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the Charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the Charity’s forecasts and projections. The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

Incoming resources

Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Volunteer time is not included in the financial statements.

Subscriptions and revalidation fees are recognised in the statement of financial activities in the financial period to which they relate. Subscriptions which relate to a future accounting period are deferred.

Examination fee income is recognised when the examination takes place. Delegate fee income is recognised when the event takes place.

Course approval fees are recognised when approval is granted.

Resources expended

Resources expended are recognised in the period in which they are incurred. Resources expended include attributable VAT which cannot be recovered.

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 based on staff time of the amount attributable to each activity.

Governance costs include the management of FPM's assets, organisational management and compliance with constitutional and statutory requirements.

Fund accounting

Unrestricted funds include donations and other incoming resources receivable or generated for the objects of FPM.

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

Restricted funds are funds subject to specific restrictive covenants imposed by donors or by the purpose of the appeal.

Pensions

FPM contributes 10% of salaries to individual money purchase pension schemes. The assets of the schemes are held separately from those of FPM in independently administered funds. The pension cost charge represents contributions payable under the schemes by FPM to the fund. FPM has no liability under the schemes other than for the payment of those contributions.

Annual report and accounts for the year ended 31 December 2022 | 35

Faculty of Pharmaceutical Medicine of the Royal Colleges of Physicians of the United Kingdom Notes to the Financial Statements For the year ended 31 December 2022

1. Basis of preparation (continued)

Tangible fixed assets and depreciation

Depreciation is provided at rates calculated to write off the cost of each asset evenly over its expected useful life. The useful life is as follows:

Computer & Office Equipment 3 Years
Computer Software 3 Years
Leasehold improvements 10 Years or up to the end of the period of the lease

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities.

Investments

Investments held as fixed assets are revalued at bid-price value at the balance sheet date. The gain or loss for the period is taken to the statement of financial activities.

Operating leases

Rentals payable under operating leases, where substantially all the risks and rewards of ownership remain with the lessor, are charged to the statement of financial activities on a straight line basis over the lease duration.

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.

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.

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.

Financial instruments

With the exception of the listed investments described above 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.

2. Total resources expended

Education & standards
Communications & advocacy
Membership support
services		 Direct staff
costs
£
441,141
63,171
199,284
703,596
549,990		 Other direct
costs
£
702,613
67,641
-
770,254
687,315		 Support
costs
£
337,766
48,368
152,585
538,719
546,737		 Total 2022
£
1,481,520
179,180
351,869
2,012,569
1,784,042		 Total 2021
£
1,345,402
291,596
147,044
1,784,042

Support costs are allocated on the basis of staff cost.

Annual report and accounts for the year ended 31 December 2022 | 36

Faculty of Pharmaceutical Medicine of the Royal Colleges of Physicians of the United Kingdom Notes to the Financial Statements For the year ended 31 December 2022

2. Total resources expended (continued)

Total resources expended in prior year

Education & standards
Communications & advocacy
Membership support
services		 Direct staff
costs
£
359,252
116,998
73,740
549,990		 Other direct
costs
£
629,023
58,292
-
687,315		 Support
costs
£
357,127
116,306
73,304
546,737		 Total 2021
£
1,345,402
291,596
147,044
1,784,042

3. Net movement in funds

This is stated after charging:

This is stated after charging:
Trustees' indemnity insurance
Trustees' expenses
Auditors' remuneration:
▪audit (excluding VAT)
Depreciation
Operating lease rentals:
▪property
▪other		 2022
£
2,135
3,702
9,700
40,371
203,117
1,848		 2021
£
1,927
415
8,800
33,387
203,117
4,870

Three trustees (2021: two trustees) received remuneration in the year of £7,290 (2021: £29,093.93) for providing services in relation to revalidation appraisals. Assem el Baghdady is a contracted provider of appraisal services and received remuneration relating to their work on four appraisals of £2,670 (2021: £7,665). Kamleth Sheth is a contracted provider of appraisal services and received remuneration relating to their work on three appraisals of £1,890 (2021: £Nil). Emma Louise Harvey is a contracted provider of appraisal services and received remuneration relating to their work on three appraisals of £1,575 (2021: £Nil). Neil Snowise is a contracted provider of training services and received remuneration relating to their work on one training service of £375 (2021:£Nil). Trustees' expenses above relate to the reimbursement of travel and subsistence costs of 10 trustees (2021: 4 trustees) for attendance at meetings of the trustees and activities of FPM.

4. Support costs

Support costs
Governance costs
Audit & other advice
Board expenses
Other
Staff costs
Other support costs:
Rent, rates and service charges
Stationery, postage and printing
Staff welfare
IT Costs
Equipment
Depreciation
Telephone and fax
Legal, professional & accountancy
Insurance
Memberships
Miscellaneous		 2022
£
11,640
19,351
-
30,991
35,847
238,889
2,475
6,612
30,118
21,149
40,370
913
29,109
17,124
34,514
50,607
538,718		 2021
£
10,560
537
-
11,097
44,930
231,380
5,613
17,507
33,020
23,849
33,390
7,811
36,027
14,487
40,687
46,941
546,739

Annual report and accounts for the year ended 31 December 2022 | 37

Faculty of Pharmaceutical Medicine of the Royal Colleges of Physicians of the United Kingdom Notes to the Financial Statements For the year ended 31 December 2022

5. Staff costs and numbers

Staff costs were as follows:
Salaries and wages
Social security costs
Pension contributions
Temporary staff
Recruitment
Redundancy
Employee emoluments in the band £60,000 - £69,999
Employee emoluments in the band £70,000 - £79,999		 2022
£
600,313
48,605
86,920
-
3,605
-
739,443
-
1		 2021
£
456,251
45,696
68,780
8,263
10,327
5,600
594,917
1
-

The key management personnel of the Charity comprise the trustees and the Chief Executive. The total employee benefits of the key management personnel (including employers' NI and pension) of the Charity were £94,206 (2021: £88,878)

The average number of employees (head count based on number of staff employed) during the year was as follows:

Education & standards
Communications & advocacy
Membership support
Governance		 2022
No.
10.3
1.5
4.6
0.8
17.2		 2021
No.
7.7
2.5
1.6
1.0
12.8

6. Tangible fixed assets

Cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the period
Disposals
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021		 Computer
Software
£
55,178
153,219
-
208,397
46,508
6,950
-
53,458
154,939
8,670		 Computer &
Office
equipment
£
80,275
4,230
-
84,505
61,499
8,865
-
70,364
14,141
18,776		 £
228,393
5,216
-
233,609
138,049
24,556
-
162,605
71,004
90,344
Leasehold
improve-
ments		 Total
£
363,846
162,665
-
526,511
246,056
40,371
-
286,427
240,084
117,790

Annual report and accounts for the year ended 31 December 2022 | 38

Faculty of Pharmaceutical Medicine of the Royal Colleges of Physicians of the United Kingdom Notes to the Financial Statements For the year ended 31 December 2022

7. Investments

Market value at the start of the year
Additions at cost
Less disposals at carrying value
Net gain / (loss) on revaluation
Net investment in cash funds
Market value at the end of the year
Historic cost at the end of the year
Investments comprise:
Cash funds
Charities Official Investment Fund - Income
Property
UK equities
International equities
Bonds		 Cost
2022
£
-
201,127
60,339
142,311
30,390
160,356
594,524		 Cost
2021
£
-
201,127
57,987
130,681
64,237
150,660
604,692		 2022
£
1,000,016
87,504
(85,334)
(168,027)
3,481
837,640
594,524
Market Value
2022
£
3,793
384,231
54,043
169,050
77,948
148,575
837,640		 2021
£
999,263
7,987
(103,571)
96,337
-
1,000,016
604,692
Market Value
2021
£
320
438,705
54,545
202,929
129,951
173,566
1,000,016
8. Debtors
Prepayments
Sundry debtors & accrued income
9. Creditors: amounts due within one year
Trade creditors and accruals
Taxation and social security
Other creditors
Deferred income		 2022
£
120,255
44,161
164,416
2022
£
208,195
21,062
19,651
383,962
632,870		 2021
£
108,092
28,682
136,774
2021
£
194,579
14,963
19,718
337,550
566,810

Deferred income

Deferred income comprises CHP and DHP exam income, 2022/23 revalidation fee income, and subscriptions paid in advance.

Deferred income brought forward
Resources deferred in the year
Amounts released from previous years
Deferred income carried forward
10. Creditors: amounts due after one year
Rent Free Period
One to two years
Two to five years		 2022
£
337,550
383,962
(337,550)
383,962
2022
£
17,862
14,885
32,747		 2021
£
391,940
337,550
(391,940)
337,550
2021
£
17,862
32,748
50,610

Annual report and accounts for the year ended 31 December 2022 | 39

Faculty of Pharmaceutical Medicine of the Royal Colleges of Physicians of the United Kingdom Notes to the Financial Statements For the year ended 31 December 2022

11. Movements in funds

Movements in funds in current year

Restricted funds:
Royal Society of Chemistry
Innovate UK
Total restricted funds
Unrestricted funds:
Designated funds:
Development Appeal
Fixed Asset
Total designated funds
General funds
Total unrestricted funds
Total funds
Movements in funds in prior year
Restricted funds:
Royal Society of Chemistry
Dinwoodie Charitable Company
Catch 22
Total restricted funds
Unrestricted funds:
Designated funds:
Development Appeal
Fixed Asset
Total designated funds
General funds
Total unrestricted funds
Total funds		 Brought
forward
1 January
2022
£
1,716
-
1,716
29,596
117,790
147,386
952,732
1,100,118
1,101,834
Brought
forward
1 January
2021
£
10,000
-
-
10,000
29,596
117,425
147,021
846,212
993,233
1,003,233		 Incoming
resources
£
-
9,573
9,573
-
-
-
1,830,612
1,830,612
1,840,185
Incoming
resources
£
-
11,200
10,690
21,890
-
-
-
1,764,416
1,764,416
1,786,306		 Outgoing
resources
£
(1,716)
(9,573)
(11,289)
-
-
-
(2,001,280)
(2,001,280)
(2,012,569)
Outgoing
resources
£
(8,284)
(11,200)
(10,690)
(30,174)
-
-
-
(1,753,868)
(1,753,868)
(1,784,042)		 Transfers &
investment
gains
£
-
-
-
-
122,294
122,294
(290,321)
(168,027)
(168,027)
Transfers &
investment
gains
£
-
-
-
-
365
365
95,972
96,337
96,337		 £
-
-
Carried
forward
31 December
2022
-
29,596
240,084
269,680
491,743
761,423
761,423
£
1,716
-
-
Carried
forward
31 December
2021
1,716
29,596
117,790
147,386
952,732
1,100,118
1,101,834

Purposes of restricted funds

In 2022 FPM received a restricted grant from Innovate UK towards a potential project on COVID-19. In 2020 FPM received restricted grant funding from the Royal Society of Chemistry towards a research project on Women in Pharmaceutical Medicine.

Purposes of designated funds

Development Appeal Fund - The fund, launched in 2002, is to develop FPM. It has been set aside by trustees for this purpose.

Fixed Asset Fund - The fund represents the net book value of tangible fixed assets in use by FPM and therefore not available to meet future expenditure. A transfer is made each year to reflect the change in net book value.

Annual report and accounts for the year ended 31 December 2022 | 40

Faculty of Pharmaceutical Medicine of the Royal Colleges of Physicians of the United Kingdom Notes to the Financial Statements For the year ended 31 December 2022

12. Analysis of net assets between funds

Investments
Tangible fixed assets
Net current assets
Long term liabilities		 Restricted
funds
£
-
-
-
-
-		 Designated
funds
£
-
240,084
29,596
-
269,680		 General
funds
£
837,640
-
(313,150)
(32,747)
491,743		 Total
funds
£
837,640
240,084
(283,554)
(32,747)
761,423
Analysis of net assets between funds in prior year
Investments
Tangible fixed assets
Net current assets
Long term liabilities		 Restricted
funds
£
-
-
1,716
-
1,716		 Designated
funds
£
-
117,790
29,596
-
147,386		 General
funds
£
1,000,016
-
3,326
(50,610)
952,732		 Total
funds
£
1,000,016
117,790
34,638
(50,610)
1,101,834

13. Operating lease commitments

FPM had total commitments at the period end under operating leases (all for land & buildings) expiring as follows:

Less than 1 year
1 - 5 Years		 2022
£
203,118
372,382
575,500		 2021
£
203,117
575,500
778,617

Annual report and accounts for the year ended 31 December 2022 | 41

Faculty of Pharmaceutical Medicine of the Royal Colleges of Physicians of the United Kingdom Notes to the Financial Statements For the year ended 31 December 2022

14. Prior year comparatives

Statement of Financial Activities for the year ended December 2021

Income
Education & standards
Communications & advocacy
Membership subscriptions
Income from investments
Income from other trading activities
Total income
Expenditure on charitable activities:
Education & standards
Communications & advocacy
Membership support services
Total expenditure
Net gains on investments
-
Total funds brought forward
Total funds carried forward
Income from charitable activities:
Expenditure
Net expenditure before gains on investments
Net income & Net movement in funds		 Unrestricted
Funds
£
1,213,748
8,600
521,088
19,385
1,595
1,764,416
1,315,228
291,596
147,044
1,753,868
10,548
96,337
106,885
993,233
1,100,118		 Restricted
Funds
£
21,890
-
-
-
-
21,890
30,174
-
-
30,174
(8,284)
-
(8,284)
10,000
1,716		 2021
Funds
£
1,235,638
8,600
521,088
19,385
1,595
1,786,306
1,345,402
291,596
147,044
1,784,042
2,264
96,337
98,601
1,003,233
1,101,834

Annual report and accounts for the year ended 31 December 2022 | 42