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2021-12-31-accounts

Company number: 11390175 Charity number: 1178741

Faculty of Medical Leadership and Management

Annual Report and Financial Statements For the year ended 31 December 2021

Faculty of Medical Leadership and Management

Contents

For the year ended 31 December 2021

Reference and administrative information ......................................................................................................... 1 Chair’s Foreword.................................................................................................................................................. 2 Chief Executive’s Introduction ............................................................................................................................ 3 Trustees’ annual report ...................................................................................................................................... 5 Independent auditor’s report ........................................................................................................................... 21 Consolidated statement of financial activities (incorporating an income and expenditure account) .............. 24 Balance sheets ................................................................................................................................................... 25 Consolidated statement of cash flows .............................................................................................................. 26 Notes to the financial statements ..................................................................................................................... 27

Faculty of Medical Leadership and Management

Reference and administrative information

For the year ended 31 December 2021

Company number 11390175 Charity number 1178741 Registered office and operational address 34 Red Lion Square, London, WC1R 4SG Country of registration England & Wales Country of incorporation United Kingdom Trustees Professor Mayur Lakhani Chair (appointed Chair 1 January 2020) Ms Jenny Ehrhardt Treasurer (appointed 1 June 2017) Dr Philip Kloer Ordinary Trustee (appointed 18 June 2019) Mr Alastair Henderson Ordinary Trustee (appointed 30 March 2019) Dr Taj Hassan Ordinary Trustee (appointed 1 April 2017) Prof Bee Wee Co-opted Trustee (appointed 1 November 2019) Prof Kamila Hawthorne Co-opted Trustee (appointed 26 November 2019) Ms Nargis Ara-Ranaldi Lay Trustee (appointed 1 November 2019) Mr Mark Spragg Lay Trustee (appointed 1 November 2019) Mr David Bennett Lay Trustee (appointed 1 November 2019) Key management Mr Peter Lees Chief Executive personnel Ms Kirsten Armit Chief Operating Officer Dr Paul Evans Medical Director Bankers Charities Aid Foundation Bank (CAF Bank Limited) 25 Kings Hill Avenue Kings Hill, West Malling, Kent ME19 4JQ Solicitors Bates Wells Braithwaite 10 Queen Street Place London EC4R 1BE Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane London EC1Y 0TL

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Faculty of Medical Leadership and Management

For the year ended 31 December 2021

Trustees’ annual report

Chair’s Foreword

The year presented further challenges to healthcare leadership through the ongoing Covid-19 pandemic, the increasingly obvious crises presented by climate change and the ongoing structural inequalities in healthcare. Additionally, the year also marked the 10[th] anniversary of FMLM and a number of our members and fellows being recognised in the Queen’s New Year and Birthday Honours, among them our Chief Executive, Peter Lees, receiving an MBE for services to medical leadership.

With healthcare’s leadership and workforce dealing with the challenges of Covid-19 and recovery and restoration, FMLM’s 10th anniversary celebrations, launched at the beginning of the year, were purposefully low key. We focused on celebrating the milestones reached as an organisation and our growing community of leaders, as well as placing the key issues of sustainability and tackling inequality of access to – and career attainment in – healthcare, as central planks of support for both our incredibly valuable workforce as well as the care of our patients.

Tackling racism and building fairer systems to address structural inequalities in healthcare access and outcomes, as well as the urgent green agenda in healthcare, were among the key topics of discussion at our annual international conference in November. The post-Covid world presents us with the opportunity to learn, plan and lead a very different agenda in future, one that is beneficial for both the workforce and for patient care.

Medical and dental leadership has never been more important. This is a time of opportunity for those who are, and who aspire to be, medical and dental leaders; to create the best possible futures for the workforce and the communities we serve, and FMLM is proud and privileged to support that.

Professor Mayur Lakhani CBE FMLM Chair

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Trustees’ annual report

For the year ended 31 December 2021

Chief Executive’s Introduction

As FMLM’s 10[th] anniversary dawned, we recognised the contribution that many have made to the development of the UK professional home for medical and dental leadership. Throughout 2021, the Covid19 pandemic continued to rage with varying ferocity so the needs of FMLM’s membership remained a strong focus. After the significant challenges 2020 posed to the organisation’s resilience, 2021 yielded the strongest performance to date and offered the opportunity for a significant refresh in a number of areas. The new five-year strategy, developed in 2021, defined three core functions of FMLM: professionalisation of medical and dental leadership; research and the promotion of evidence; and individual and organisational leadership development. All are underpinned by the need to promote equality, diversity and inclusion and sustainability. The third edition of the Leadership and Management Standards for Medical Professionals was published with enhancements to system leadership. Membership numbers continued to grow, and the number of members awarded fellowship FMLM Fellowship grew to over 200.

An embryonic research arm was created, strong academic collaborations were established and FMLM secured its first significant research grant. Our sister organisation, the Royal Australasian College of Medical Administrators (RACMA) adopted the British Medical Journal Leader (BMJL) as its official journal and FMLM continued to publish widely in the academic literature. The year ended with our annual international conference, in partnership with the British Medical Journal (BMJ), at which we launched FMLM Navigator, the new career guidance, CPD and leadership development app for doctors at all stages of the medical career.

FMLM continued to play a major role in supporting medical and dental leaders facing the rigors of leading through the pandemic and multiple new development programmes were commissioned with hundreds of participants. We also marked 10 years of managing the National Medical Director’s Clinical Fellowship Scheme. This has grown and diversified over the decade, firstly into dentistry and pharmacy. In 2021, we launched a new, multi-professional NHS Regional Clinical Fellow Scheme and a new alumni scheme in partnership with NHS England and NHS Improvement. Nationally, we also established three new schemes sponsored by the Chief Sustainability Officer, the Chief Nursing Officer and the Chief Scientific Officer. We were very pleased to be joined in the supporting education programme by fellows from sister schemes across the home nations. The year culminated with Professor (now Sir) Jonathan Van-Tam, Deputy Chief Medical Officer for England, delivering the annual Keogh lecture in which he shared his reflections on science, clinical leadership and the Covid-19 pandemic.

The work of our Trainee Steering Group (TSG) grew from strength to strength with a range of initiatives including the launch of the FMLM Leadership Commitment for Junior Doctors to encourage healthcare organisations to recognise and support the leadership development of junior doctors, as well as the hugely supportive Introduction to Leadership Development , a series of free, monthly webinars.

FMLM continues to grow as a vital community to provide the support our members and fellows need, and to add value to the profession by upholding the standards of leadership and improving patient care.

Mr Peter Lees FMLM Chief Executive

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Faculty of Medical Leadership and Management

Trustees’ annual report

For the year ended 31 December 2021

The trustees present their report and the audited financial statements for the year ended 31 December 2021.

Reference and administrative information set out on page 1 forms part of this report. 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 applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

Purposes and aims

The objects of FMLM are:

FMLM meets these charitable objects and achieves public benefit through a range of activities including the following:

Mission statement:

FMLM will work to establish its role as the professional home for medical leadership* and promote excellence in leadership on behalf of all doctors in public health, mental health, primary and secondary care, from medical student to medical director and chief executive, and for all UK healthcare providers and healthcare related organisations in all sectors.

(*dental leadership is encompassed in the term medical leadership)

Vision and core values:

‘To champion, influence and develop excellence in medical leadership to drive continuous improvement in health and healthcare.’

FMLM works to professionalise medical leadership by setting and benchmarking against standards that are aligned with the General Medical Council’s Good Medical Practice and underpinned by the research evidence linking leadership to quality of care and patient outcomes.

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Faculty of Medical Leadership and Management

Trustees’ annual report

For the year ended 31 December 2021

The year to 31 December 2021 was the fifth of the five-year 2017/21 strategy and the third as a registered charity. The performance and achievements in the year are summarised below.

The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

FMLM’s main activities include:

Examples of FMLM’s leadership development programmes include ‘Tomorrow’s Strategic Leader’, a multimodule programme aimed at new consultants/GPs and senior trainee doctors; and the College Office Bearers’ programme, which helps experienced doctors hone their skills in preparation for a senior leadership role in one of the medical royal colleges, including the role of college president.

An example of FMLM’s 2021 educational events include the annual international healthcare leadership conference, Leaders in Healthcare, held in person and online in November.

FMLM Applied provides tailored leadership development programmes for organisations and is a wholly owned trading arm of FMLM. It essentially operates as an independent consultancy with a separate board of directors, including at least one FMLM Trustee, and reports to the FMLM Board of Trustees.

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Trustees’ annual report

For the year ended 31 December 2021

FMLM also receives income from grant funding for research advertising on its website and, occasionally, from commercial partnerships.

Achievements and performance

Professionalising medical leadership

FMLM directs a major part of its work to improve patient care at the NHS and its medical workforce across the UK, and continues to engage with NHS England and NHS Improvement, the General Medical Council, Academy of Medical Royal Colleges, as well as individual medical royal colleges and faculties.

The year 2021 marked 10 years since FMLM’s inception as a professional body and three years since it was established as an independent charity.

The third edition of the FMLM Leadership and Management Standards for Medical Professionals was published. It built on the individual competencies outlined in earlier editions and how they should be applied to the development of networks and more integrated patient care, as well as the health and wellbeing of local, regional and national populations. This aligned the Standards with the UK’s new Health and Care Act (2022) as well as supporting an inclusive and diverse culture in healthcare.

FMLM began developing its new five year strategy, 2022-2026, on which it consulted with stakeholders, including board members, fellows, the FMLM membership and key partners.

The FMLM team continued to award FMLM Accreditation to courses and programmes that met FMLM requirements on quality and adhered to the FMLM Leadership and Management Standards for Medical Professionals . More than 20 programmes, courses and medical school curricula now carry the FMLM marque to indicate high quality medical leadership teaching.

The introduction of the FMLM Affiliated Organisations initiative led to an excellent year of growth in 2021, where word of mouth and endorsement from NHS England and Improvement resulted in 12 organisations joining FMLM. The 12 affiliated organisations have set out to adopt the FMLM Standards and ensure the leadership and management component of their medical appraisal is fit for purpose. In addition, the organisations have benefited from their affiliation with the professional home for medical leadership through discounts on other FMLM services, including FMLM Applied work and FMLM Accreditation .

FMLM Applied

FMLM Applied operates independently to the FMLM charity and offers leadership and management expertise, as well as hands-on support, to teams, organisations, and systems. In 2021, FMLM Applied delivered 33 programmes to 21 different organisations. The programmes ranged from one day workshops to programmes with multiple workshops, coaching, and psychometric profiling. FMLM Applied worked with doctors and other healthcare leaders including medical directors, clinical directors, clinical leads, consultants, chief residents, and trainees. Programmes also involved multi-professional teams, including triumvirates of medical, nursing, and operational leaders.

Of the 21 organisations that FMLM Applied worked with, 16 were NHS organisations, including those funded by NHS England and Improvement. Other organisations included a royal college, a royal society, a

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pharmaceutical company and two educational organisations. FMLM Applied expanded its associate network by bringing in eight new associates.

Medical director participants on one of the FMLM Applied programmes took part in the annual international conference, delivering a workshop on their experiences of leading in a challenged trust, which was well received.

FMLM Applied appointed two associates on a retainer basis to help develop new offers; Dr Tony Berendt, former Medical Director at Oxford University Hospitals, an FMLM Founding Senior Fellow and Senior FMLM Applied Associate, is designing a spiral curriculum to offer trusts a template to guide the leadership development of their doctors at all levels, from new consultants to senior medical leaders. Dr Andy Haynes, a former strategic transformation partnership medical director, was appointed to lead the development of an offer around systems leadership, specifically within the new English integrated care systems that will further FMLM’s understanding of the requirements of leaders to operate effectively within these new and complex systems.

FMLM research

In 2021, FMLM commenced two research projects and developed plans to expand its research work to enhance the organisation’s impact and reputation. The first project focused on research into the role of medical directors and chief medical officers in the UK to develop a better understanding of an incumbent’s progression to and experience in the role, as well as their thoughts on their future career. Results will be published in 2022. The second project secured a substantial research grant from the Dinwoodie Charitable Company to investigate what works in leadership development and assessment for postgraduate doctors in training. This work will also involve developing guidance and a train the trainer development programme. Work on these research projects is ongoing and will report in 2022.

In November 2021, FMLM’s senior management team, along with selected associates and members of the FMLM Applied Board, and Finance, Audit and Remuneration Committee, came together to explore ways in which the FMLM charity and FMLM Applied can maintain and grow its products and services relevant for the ever-changing UK healthcare system. The potential need for investment was acknowledged and the committees agreed to the development of FMLM’s research programme in 2022, to enhance knowledge of and FMLM’s reputation in thought leadership and leadership development. There was agreement to invest in a range of market, business, and academic research to allow both the FMLM charity and FMLM Applied to:

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For the year ended 31 December 2021

Associates were appointed in 2021 and will lead on key areas of research, including programmes in integrated care systems (Dr Andy Haynes), primary care leadership (Dr Sarah Schofield), and medical leadership in organisations (Dr Tony Berendt). In 2021 FMLM identified then need for a Director of Corporate Services and designed a role to be advertised in 2022, to allow the current Chief Operating Officer (Ms Kirsten Armit) to significantly develop the research activities of FMLM.

FMLM continued to work with BMJ as joint owner of the online scientific journal, BMJ Leader, to which FMLM members have access as part of their membership.

Leadership development

The third cohort of FMLM’s flagship leadership development programme, Tomorrow’s Strategic Leader , for senior trainees, early consultants and GPs, was delivered throughout 2021. The cohort, consisting of 15 participants from a range of secondary and primary care specialties, took part in six of the 10 delivery days. An interim evaluation of the programme indicated that 83 per cent of participants rated the programme four stars and above in a scale of one to five.

The seventh cohort of the FMLM College Office Bearer’s Leadership Development Programme was delivered in 2021. Thirteen participants attended from a range of medical royal colleges and faculties. The programme reverted to mainly face to face delivery following easing of Covid-19 restrictions.

The first FMLM College Council Leadership Development Programme was delivered to 17 participants during 2021. The programme is designed to help new members of college councils to get the best from their roles. In 2021, the programme was delivered, online, over two half days, by a faculty of high-profile senior leaders drawn from the NHS and affiliated healthcare organisations. The programme evaluated well, with 75 per cent of respondents rating their overall satisfaction as four stars and above in a scale of one to five.

A new Wales Connect and Support programme commenced in late 2021. The programme, open to FMLM members in Wales, provided seven facilitated action learning sets, spread over seven months, with the intention that the group continue with self-facilitated monthly action learning sets.

FMLM’s Clinical Fellow Scheme portfolio has significantly increased profile and scope throughout 2021. The portfolio is now comprised of seven schemes, six national and one regional.

Building on the established National Medical Director’s, Chief Pharmaceutical Officer’s, and Chief Dental Officer’s Clinical Fellow Schemes, FMLM developed and launched additional clinical fellow schemes for the Chief Scientific Officer, Chief Sustainability Officer, Chief Nursing Officer, and the multi-profession NHS Regional Scheme. In total, 101 clinical fellows were appointed to FMLM-managed schemes in 2021.

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Trustees’ annual report

For the year ended 31 December 2021

To manage the new activity and volume, FMLM re-invested and completed major adaptations and improvements to scheme recruitment materials, processes, and platforms. Subsequent pre-launch and post recruitment phases can now track and report key information in real time and generate accurate information to support further development of established schemes and potential future opportunities within the FMLM-managed clinical fellow scheme portfolio.

Following an options appraisal and business case, FMLM deployed a learning management system (LMS) to deliver educational programmes throughout 2021 and in subsequent years to clinical fellows from England, Wales and Northern Ireland. The LMS is also providing a suite of available resources that are accessible beyond clinical fellowship and specifically to the Clinical Fellow Scheme Alumni .

The FMLM Medical Student Leadership Scheme welcomed 11 students onto the programme in 2021. The student participants spent six weeks working in a national healthcare-affiliated organisation outside of clinical practice; the Scheme followed the style of national clinical fellow schemes. Host organisations which supported the Scheme, included: the Care Quality Commission, General Medical Council, Health Select Committee, Healthcare Quality Improvement Partnership, NHS England, and the Health Foundation. More than 90 per cent of students who responded to the evaluation survey rated the Scheme as five on a scale of one to five.

Annual international conference

The international conference in 2021 was delivered in a hybrid format with two days in person at the Barbican Centre in London, and two days online. The conference attracted 881 attendees from more than 30 countries, of which more than 71 per cent were paying delegates and 41 per cent were FMLM members. Delegates attended from around the world; the top three countries represented by registrations were the

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UK (from all four nations), Australia, and the USA. The event received an average of more than four out of five stars in the post-event evaluation, with outstanding highlights including networking, speed coaching, interactive workshops, and keynote speakers.

Membership

FMLM membership grew at an encouraging rate in a trend that has been in evidence since 2019. The launch of FMLM International Membership saw uptake from more than 20 countries, and details on a forthcoming FMLM International Fellowship were agreed. The end of the year saw the launch of our first mobile app, FMLM Navigator , which became available for FMLM members to use. Applications for FMLM Fellowship continued to be received at an encouraging rate, given the healthcare pressures. Work to improve the fellowship application and assessment process, including the full digitisation of the application system, was completed, and resulted in an easier, more efficient system for both applicants and assessors.

Membership at the end of 2021 numbered 2,629 individual members (a 5.41% increase on 2020), including:

The stated ethnicity of FMLM’s total membership in 2021 remained similar in diversity to 2020; there was an increase in the proportion of members who did not declare their ethnicity:

The gender split in FMLM’s membership in 2021 showed a slight increase in the proportion of women:

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Beneficiaries of our services

The ultimate intended beneficiaries of FMLM’s activities are patients, who benefit from better and safer care through better medical leadership. However, this is tenuous and difficult to measure.

The immediate beneficiaries of FMLM’s services and activities are its membership, which mostly comprises doctors at all career stages from medical student to medical director and chief executive. At the end of 2021, FMLM had 2,629 members who had access to benefits including mentoring, the latest research in medical leadership through FMLM’s jointly owned scientific journal, BMJ Leader, and access to a wide range of activities including conferences, webinars, and interest groups (such as medical students and trainee steering groups). FMLM measures its impact through membership surveys, which, due to the pandemic, have been reduced to a minimum to avoid the impact on doctors’ time.

FMLM measures the impact of its leadership development programmes by the FMLM charity and FMLM Applied through qualitative and quantitative measures, including commissioned research into the impact of a programme, such as Tomorrow’s Strategic Leader . FMLM Applied often returns to a client some months later to assess the longer-term impact of its earlier leadership development interventions.

Financial review

FMLM’s results for the year are shown in the Statement of Financial Activities (SOFA).

The actual performance result for the year is an FMLM group net surplus of £531k (£489k for the FMLM charity).

A breakdown of income for FMLM:

The total FMLM group (FMLM charity, including FMLM Applied trading company) income for 2021 was £2,145k (£1,322k in 2020).

A breakdown of expenditure for FMLM:

The total FMLM group expenditure for 2021 was £1,615k (£1,294k in 2020).

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The costs of all income generating activities were £150k (22%) below budget. The actual income generated was £351k (20%) above budget, this was largely due to several new clinical fellow schemes being added to the existing portfolio and raising an unbudgeted surplus. Staff costs, at £785k, the highest source of expenditure, were 16% higher than the prior year mostly due to the reimbursement of the staff salary sacrifice from 2020, plus additional staffing costs associated with HR, data protection and associate costs for growing and developing the primary care area. .

Despite the ongoing impact of the pandemic as well as winter pressures, direct costs were kept to a minimum through significant team effort, and income exceeded budget in a number of key areas, which contributed to the positive outturn in performance.

Statement on fundraising

FMLM does not engage in public fundraising and does not use professional fundraisers or commercial participators. FMLM nevertheless observes and complies with the relevant fundraising regulations and codes. During the year there was no non-compliance of these regulations and codes and FMLM received no complaints relating to its fundraising practice.

Principal risks and uncertainties

FMLM has reviewed and updated the key strategic risks identified in 2021 for the FMLM charity and FMLM Applied, which are summarised below.

Strategic risks

  1. Staff wellbeing and impact on service delivery Staff continued working from home throughout 2021. The impact of this was possible risks to staff well-being (and their families) which could result in reduced service delivery and team connectivity. Regular team meetings, staff surveys, reviews of workspaces, access to an Employee Assistance Programme, online social events and regular check-ins ensured staff were supported and morale and team working remained high. An external organisation was contracted to review team structure and roles in 2021 which involved the whole team and culminated in a team away day towards the end of 2021. Despite the risk of Covid-19, attendance and engagement in team events remained stable and the team came together for the Leaders in Healthcare conference in November 2021.

  2. FMLM Applied and leadership programmes – programme income and delivery Due to the ongoing impact of the pandemic, pressure for healthcare organisations to resume services, and government guidance restricting in person gatherings there was a risk FMLM Applied and other leadership development activity would be significantly reduced or cease. This was mitigated by regular communication with clients, Associates and participants to reschedule planned programmes or for programmes to be adapted for online delivery.

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  1. FMLM Membership and Fellowship – income

  2. There was risk that membership and fellowship income could fall as all existing and potential new members and fellows were impacted personally and professionally by the pandemic and therefore potentially may not have prioritised their membership or fellowship. However, at the end of 2021, membership numbers were higher than all previous years and the FMLM membership team applied contingencies to reduce the number of members who naturally leave each month and focused on new avenues via affiliated organisation membership and international membership, both still in their infancy in 2021.

  3. FMLM governance – breach of deadlines and Trustee engagement

There was a risk that Trustee engagement could fall as we moved to online meetings. However, the move to online board meetings was welcomed and engagement remained stable. All reporting deadlines were met and FMLM processes which ensure that the governance risks of noncompliance with statutory reporting are low were robust. The Board also accepted a paper that significantly increased the engagement of stakeholders and members and proposed to replace Council, as previously constituted, thereby strengthening overall governance.

  1. Leaders in Healthcare – loss of income and/or irretrievable high costs

  2. In early 2021, there was uncertainty about whether the conference could go ahead as a face-toface event due to the ongoing pandemic and government restrictions which would have had an impact on income. In addition, there may have been a risk of incurring irretrievable high venue costs should the event go ahead with reduced numbers. These risks were reduced significantly following negotiation with the venue and a lifting of government restrictions on indoor gatherings. The conference was held face to face, in line with government guidance in November 2021 with attendance of over 800 delegates.

Reserves policy

FMLM’s activities, together with the factors likely to affect its future development, performance and financial position, are set out on pages 5 to 11. The financial position of FMLM, its cash flows, liquidity position pages 24 to 27.

FMLM continuously seeks to find and maintain new sources of income to further its activities and also mitigate any risk of over-reliance on major income streams.

The FMLM reserves policy is to hold on average half its annual expenditure £807k in reserve to enable FMLM to weather a temporary significant decrease in income and/or wind up the charity in an orderly manner, in line with best practice guidance for charities.

The FMLM reserves at 31 December 2021 were £1.3m. This represents five to six months' worth of the operational expenditure forecast for 2021. This policy may be reviewed in-year by Trustees where there is a strong business case for investment in critical FMLM activity that would lead to a reduction in reserves to less than six months operating costs.

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Faculty of Medical Leadership and Management

For the year ended 31 December 2021

Trustees’ annual report

Going concern

The trustees having reviewed FMLM’s financial position, the level of cash and reserves, together with the long-term projections, the systems of financial control and risk management in place, management’s continued endeavours to deliver operational efficiencies, they believe FMLM is well placed to manage its business risks successfully. The trustees consider FMLM has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Trading subsidiary

FMLM’s wholly owned trading subsidiary FMLM Applied’s net profit for the year ended 31 December 2021 of £54k will be paid under gift aid to the charity in 2022. The principal activities of the company are providing high-quality clinical leadership development aimed at enhancing clinical leadership and engagement to improve patient care, creating and providing bespoke support programmes for individuals, teams and organisations.

The trading results and balance sheet of the subsidiary extracted from its accounts are set out in note 12 to the financial statements.

Plans for the future

FMLM celebrated its ten-year anniversary in 2021 and launched a refreshed five-year strategy. FMLM’s plans for the charity in 2022 include:

FMLM plans to commence delivery of its five-year strategy in 2022 and to continue to seek ways to further secure FMLM’s long term financial stability.

Structure, governance and management

The Trustees of FMLM delegate day to day running of the charity to the senior management team (SMT): Mr Peter Lees, FMLM Chief Executive

Ms Kirsten Armit, FMLM Chief Operating Officer

Dr Paul Evans, FMLM Medical Director

Trustees make decisions on the strategic direction of the charity, with a written strategy reviewed at least every five years. FMLM’s previous strategy ran from 2016 to 2021. FMLM began developing its new five-

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year strategy, 2022-2026 in 2021 and this was approved at the Board of Trustees meeting in December 2021. The overall purpose of FMLM remains consistent but we have refined our vision the main areas of focus for the next five years were agreed as follows:

To deliver FMLM’s vision, it has galvanised its main outputs into three areas:

  1. The professionalisation of medical leadership

  2. Improvement of the quality of leadership through evidence-based research

  3. Leadership development.

In addition, FMLM proposes, over the next 5 years, to focus on:

Global sustainability and development of an ‘FMLM green agenda’ - Leadership will be crucial to drive forward the complex change programmes required to optimise effect on the health and wellbeing of future generations. As the professional home for medical leadership in the UK, FMLM is seeking to develop its ‘green agenda’ to:

Demonstrate commitment to creating a sustainable environment for health and healthcare

Incorporate ‘green’ philosophy into leadership development programmes, for example with the latest national clinical fellow scheme in collaboration with the NHS Chief Sustainability Officer for England

Create a culture of consideration of sustainability across the membership, with positive influence on the wider healthcare workforce.

Health and workforce inequalities – FMLM recognises the need to address evidence of health and workforce inequalities in terms of access and opportunity, outcomes and attainment; leadership is crucial to drive this change and secure improvement for patients and the workforce.

Expansion of Membership – Since its inception, FMLM has been a faculty that has supported the leadership of doctors and dentists at all career stages. However, there is a justified case to consider broadening the ‘membership’ of FMLM to include other clinical professionals, as leadership within healthcare is multiprofessional and FMLM Standards are very generic. The expansion of national clinical fellow schemes to include pharmacists as well as doctors and dentists has started to introduce this concept, and the Regional Clinical Fellow Scheme will include participation of all clinical disciplines. In addition, the introduction of a scheme for clinical fellow alumni supports this expansion. Therefore, FMLM intends to explore the widening of membership, although due recognition of the individual professional bodies would be necessary.

Financial decision-making and assessment of risks are first reviewed by the Finance, Audit and Risk (FAR) Committee, a sub-committee of the Board of Trustees. The FAR committee makes recommendations to the board on budget setting, staff remuneration, investment strategy, reserves policy and risk management. In 2021 the FAR committee was chaired by Lay Trustee, Mrs Nargis Ara-Ranaldi and members were Treasurer Ms Jenny Ehrhardt, Lay Trustee Mr Dave Bennett, and the Senior Management Team were in attendance.

The organisation is a charitable company limited by guarantee, incorporated on 31 May 2018 and registered as a charity on 12 June 2018.

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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. FMLM commenced a review of its Articles of Association and creating Standing Orders in 2021 to reflect the evolving needs of the organisation. The Board agreed that the Articles should be amended to ensure the FMLM has a fit-forpurpose document that is future-proofed and enables the recently agreed enhancements to the governance structures.

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 7 to the accounts.

Remuneration policy for key management personnel

In line with charity best practice, the FMLM Remuneration Committee is responsible for setting the pay for roles at the executive director level of organisation, ie the Chief Executive, Chief Operating Officer and Medical Director.

While the Remuneration Committee is not responsible for setting the pay of individual staff members below the executive level, it may take a view in liaising with the Finance, Audit and Risk Committee on guidance to the Board on pay rates and annual pay rises at the aggregate level.

Setting the FMLM pay policy:

The FMLM executive pay policy aims to attract and retain staff of the appropriate calibre and experience to lead FMLM. The pay policy sets out how pay is determined and what factors have been taken into account, these include:

The pay policy is reviewed annually, taking into account past and projected performance.

Senior staff remuneration, ie the SMT, was determined by the Board of Trustees based on recommendations from the remuneration committee. Pay for all other staff within FMLM is normally reviewed annually, based on organisation business performance, affordability and market comparisons.

At the end of 2021, FMLM had three members of staff who earned more than £60,000 a year.

Appointment of trustees

FMLM Trustees are appointed as follows:

Chair – nominated and voted in by eligible members of FMLM

Lay Trustees – open competitive recruitment (advert and interviews) Ordinary Trustees – appointed by the FMLM Board of Trustees Treasurer – appointed by the Board of Trustees

Co-opted Trustees – appointed by the Board of Trustees

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The FMLM Council was the professional decision-making body of FMLM and represented the membership. In July 2021, the Board accepted a paper that significantly increased the engagement of stakeholders and members and proposed to replace Council, as previously constituted. Six new committees were recommended which followed the format and style of FMLM’s well-established and successful committees, such as the Finance and Resources Committee (FAR), the Standards Certification and Award Committee (SCAC), and the Revalidation and Appraisal Advisory Committee (RAAG). It was agreed that a new Professional Oversight Committee would be established to oversee the new sub-committees.

Trustee induction and training

Every FMLM Trustee receives an induction pack with information about the charity’s governing document, key business areas and personnel, strategic plan, annual business plan and budget, committee structure and reporting lines. Trustees are also invited to meet staff from each business area to build an understanding of the work of the charity and how it meets its charitable aims through its support to members and wider activity.

Trustees receive information about their responsibilities as charity trustees and company directors, including copies of The essential trustee: what you need to know, what you need to do and It's your decision: charity trustees and decision making , essential guides from the Charities Commission.

Trustees are supported by the Board Secretary, a role which was performed by the Head of Corporate Affairs in 2021 and will be undertaken by the Director of Corporate Services (DCS) in 2022. The new DCS will be expected to support the Chair Elections and recruitment of any new trustees in 2022. The election and recruitment processes will be overseen by specific members of the Board.

Related parties and relationships with other organisations

FMLM Applied is a wholly owned subsidiary of FMLM the charity. It is a company limited by shares and its only shareholder is FMLM. FMLM Applied principally delivers leadership development programmes to organisations to help develop their medical leaders to improve patient care and safety. It delivers the programmes through a network of medical and non-medical leadership development professionals and is run on a day-to-day basis by the FMLM Chief Operating Officer and Chief Executive.

The FMLM Applied Board is chaired by Stephen Brooks, who previously sat on the FMLM Board as a Lay Trustee and has extensive consultancy experience. Other members of the FMLM Applied Board are:

Mr Peter Lees, FMLM Chief Executive

Dr Iain Wallace, former FMLM Chair Ms Kirsten Armit, FMLM Chief Operating Officer Ms Jenny Ehrhardt FMLM Treasurer

Mr Jamie Ward, Independent of FMLM, with significant leadership development experience

100% of the profits from FMLM Applied are gift aided to FMLM the charity.

17

Faculty of Medical Leadership and Management

Trustees’ annual report

For the year ended 31 December 2021

Funds held as custodian trustee on behalf of others

Founded in 2016 by two NHS clinicians, TEDxNHS is the world’s largest TEDx event license holder – representing the 1.5 million people who work across health and social care. Organised by the NHS for the NHS, TEDxNHS operates on a fully not-for-profit basis, with a multidisciplinary team of volunteers, made up of NHS staff from across the UK.

TEDx NHS is a movement and does not have a corporate body or finance function, so is unable to receive income or pay invoices. FMLM as a strategic partner of TEDx NHS provides basic finance services and holds funds for TEDx NHS to enable each annual event to run. Typical financial transactions include hire fees for the event venue and ticket receipts from attendees. FMLM does not charge a fee for its services but is recognised as a strategic partner in all event marketing.

Through FMLM’s role as an incorporated body and in support of work led by National Clinical Fellows, FMLM provides financial handling services to the Empowering Student Leadership in Healthcare (ESLIH). This includes receiving and holding ESLIH funds, issuing invoices on behalf of ESLIH and paying invoices owed by ESLIH. These funds are kept separate from FMLM’s accounts as they do not form part of FMLM’s income, expenditure or funds. FMLM benefits from contributing to and being associated with ESLIH as a supporting partner.

Statement of responsibilities of the trustees

The trustees (who are also directors of Faculty of Medical Leadership and Management 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:

18

Faculty of Medical Leadership and Management

Trustees’ annual report

For the year ended 31 December 2021

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 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:

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.

Members of the charity 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 2021 was nine (2020: nine). The trustees are members of the charity, but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

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 prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

The trustees’ annual report has been approved by the trustees on 20 July 2022 and signed on their behalf by

Nargis Ara-Ranaldi Chair of Finance, Audit and Risk Committee Board of Trustees

19

Faculty of Medical Leadership and Management

Independent auditor’s report

For the year ended 31 December 2021

Independent auditor’s report to the members of Faculty of Medical Leadership and Management

Opinion

We have audited the financial statements of Faculty of Medical Leadership and Management (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2021 which comprise the consolidated statement of financial activities, the group and parent charitable company 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 FRS 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:

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 group financial statements section of our report. We are independent of the group and parent 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 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 Medical Leadership and Management’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.

20

Faculty of Medical Leadership and Management

Independent auditor’s report

For the year ended 31 December 2021

Other Information

The other information comprises the information included in the trustees’ annual report, other than the group 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 group 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 group 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 group 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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their 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 and Charities Act 2011 requires us to report to you if, in our opinion:

21

Faculty of Medical Leadership and Management

Independent auditor’s report

For the year ended 31 December 2021

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 parent 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 group’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 group or the parent 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

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

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.

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:

22

Faculty of Medical Leadership and Management

Independent auditor’s report

For the year ended 31 December 2021

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.

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 and 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 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) 21 September 2022

for and on behalf of 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.

23

Faculty of Medical Leadership and Management

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2021

2021 2020
Unrestricted Restricted Total Unrestricted Restricted Total
Note £ £ £ £ £ £
Income from:
Donations and legacies 2 36,190 30,151 66,341 12,372 195,000 207,372
Charitable activities
Professional body services 3 471,602 - 471,602 397,671 - 397,671
Development, education & training
Services 3 979,552 10,462 990,014 285,037 28,505 313,542
FMLM events 3 12,682 - 12,682 43,579 - 43,579
Other trading activities 4 605,000 - 605,000 359,924 - 359,924
Investments - - - 2 - 2
Total income 2,105,026 40,613 2,145,639 1,098,585 223,505 1,322,090
Expenditure on:
Raising funds (including costs of trading) 5 568,446 - 568,446 352,625 - 352,625
Charitable activities
Professional body services 5 379,442 - 379,442 292,423 - 292,423
Development, education & training
Services 5 441,175 59,811 500,986 375,296 161,465 536,761
FMLM events 5 165,854 - 165,854 111,820 - 111,820
Total expenditure 1,554,917 59,811 1,614,728 1,132,165 161,465 1,293,630
Net movement in funds and net
income/(expenditure) for the year 6 550,109 (19,198) 530,911 (33,580) 62,040 28,460
Reconciliation of funds:
Total funds brought forward 794,326 63,572 857,898 827,906 1,532 829,438
Total funds carried forward 1,344,435 44,374 1,388,809 794,326 63,572 857,898

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 18a to the financial statements.

24

Faculty of Medical Leadership and Management

Company no. 11390175

Balance sheets

As at 31 December 2021

As at 31 December 2021
Balance sheets		 Company no. 11390175 Company no. 11390175
Note
Fixed assets:
11
Current assets:
14
Liabilities:
15
18
Total unrestricted funds
Total funds
Cash at bank and in hand
Tangible assets
Investment in subsidiary
Unrestricted income funds:
General funds
Debtors
Funds:
Restricted income funds
Creditors: amounts falling due within one year
Net current assets
Total net assets		 2021
2020
£
£
-
19,873
-
-
-
19,873
770,038
386,545
1,441,423
1,075,479
2,211,461
1,462,024
(822,652)
(623,999)
1,388,809
838,025
1,388,809
857,898
44,374
63,572
1,344,435
794,326
1,344,435
794,326
1,388,809
857,898
The group		 2021
2020
£
£
-
19,873
1
1
1
19,873
459,282
370,665
1,130,059
575,637
1,589,341
946,302
(255,429)
(121,466)
1,333,912
824,836
1,333,913
844,709
44,374
63,572
1,289,539
781,137
1,289,539
781,137
1,333,913
844,709
The charity
-
770,038
1,441,423		 19,873
386,545
1,075,479		 1
459,282
1,130,059		 19,873
370,665
575,637
2,211,461
(822,652)		 1,462,024
(623,999)		 1,589,341
(255,429)		 946,302
(121,466)
1,388,809 838,025 1,333,912 824,836
1,388,809 857,898 1,333,913 844,709
44,374
1,344,435		 63,572
794,326		 44,374
1,289,539		 63,572
781,137
1,344,435 794,326 1,289,539 781,137
1,388,809 857,898 1,333,913 844,709

Approved by the trustees on 20 July 2022 and signed on their behalf by

Nargis Ara-Ranaldi Trustee

25

Faculty of Medical Leadership and Management

Consolidated statement of cash flows

For the year ended 31 December 2021

Consolidated statement of cash flows
For theyear ended 31 December 2021		 Consolidated statement of cash flows
For theyear ended 31 December 2021		 Consolidated statement of cash flows
For theyear ended 31 December 2021
Note
£
£
Net income for the reporting period
530,911
(as per the statement of financial activities)
Depreciation charges
19,873
Dividends, interest and rent from investments
-
(Increase)/decrease in debtors
(383,493)
Increase/(decrease) in creditors
198,653
Net cash provided by operating activities
365,944
-
-
365,944
1,075,479
1,441,423
2021
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash flows from operating activities
Net cash (used in) investing activities
Cash flows from investing activities:
Dividends, interest and rents from investments		 £
£
28,460
19,872
(2)
83,023
187,287
318,640
2
2
318,642
756,837
1,075,479
2020
365,944
-		 318,640
2
365,944
1,075,479		 318,642
756,837
1,441,423 1,075,479

26

Faculty of Medical Leadership and Management

Notes to the financial statements

For the year ended 31 December 2021

1 Accounting policies

a) Statutory information

Faculty of Medical Leadership and Management is a charitable company limited by guarantee and is incorporated in England. The registered office address is 34 Red Lion Square, London, United Kingdom, WC1R 4SG.

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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

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

These financial statements consolidate the results of the charitable company and its wholly-owned subsidiary FMLM Applied Limited on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

c) Public benefit entity

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

d) Going concern

The trustees, having reviewed FMLM’s financial position and the level of cash and reserves, consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

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.

Income received in advance of the provision, of a specified service, (including membership, development services, training, events and consultancy) is deferred until the criteria for income recognition are met.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

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

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.

27

Faculty of Medical Leadership and Management

Notes to the financial statements

For the year ended 31 December 2021

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:

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

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.

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity:

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.

j) Operating leases

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

Items of equipment are capitalised where the purchase price exceeds £1,500. 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.

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:

Investments in subsidiaries are at cost.

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 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.

o) 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.

p) 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.

q) Pensions

The charitable company operates a defined contribution scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the charitable company to the fund. The charitable company has no liability under the scheme other than for the payment of those contributions.

28

Faculty of Medical Leadership and Management

Notes to the financial statements

For the year ended 31 December 2021

2
Income from donations and legacies
Unrestricted
£
418
35,772
-
36,190
3
Unrestricted
£
377,364
20,844
14,630
58,764
471,602
166,394
82,635
39,120
87,564
48,197
323,652
126,427
26,099
8,099
13,757
College Council Members Programme Income
2,925
Coaching Skills Workshop Income
2,027
16,656
36,000
979,552
10,557
2,125
12,682
1,463,836
4
Unrestricted
£
3,000
602,000
605,000
Advertising
Consultancy
CPD and Accreditation
Conference
College Officers Programme
Royal College of Physicians/Faculty of Medical
Leadership and Management events
Other events
Sub-total for FMLM events
Total income from charitable activities
Revalidation and appraisal fees
Other income from Development services
Fellowship
Sub-total for development, education & training
services
Income from other trading activities
Sub-total for Professional body services
Chief Dental Officer Clinical Fellowship Scheme
Chief Pharmaceutical Officer Clinical Fellowship
Scheme
Chief Nursing Officer's Clinical Fellowship
Scheme
Chief Sustainability Officer's Clinical Fellowship
Scheme
Regional Clinical Fellowship Scheme
Clinical Fellowship Scheme Alumni
Chief Scientific Officer's Clinical Fellowship
Scheme
Income from charitable activities
Legacies
Grant income
National Medical Director Clinical Fellowship
Scheme
Donations
Membership income
BMJ Leader journal		 Unrestricted
£
418
35,772
-		 Restricted
£
-
30,151
-		 2021
Total
£
418
65,923
-		 Unrestricted
£
1,200
11,172
-		 Restricted
£
-
165,000
30,000		 2020
Total
£
1,200
176,172
30,000
36,190 30,151 66,341 12,372 195,000 207,372
Unrestricted
£
377,364
20,844
14,630
58,764		 Restricted
£
-
-
-
-		 2021
Total
£
377,364
20,844
14,630
58,764		 Unrestricted
£
312,948
13,182
12,850
58,691		 Restricted
£
-
-
-
-		 2020
Total
£
312,948
13,182
12,850
58,691
471,602
166,394
82,635
39,120
87,564
48,197
323,652
126,427
26,099
8,099
13,757
2,925
2,027
16,656
36,000		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
10,462		 471,602
166,394
82,635
39,120
87,564
48,197
323,652
126,427
26,099
8,099
13,757
2,925
2,027
16,656
46,462		 397,671
201,379
59,446
7,282
-
-
-
-
-
10,801
6,129
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
28,505		 397,671
201,379
59,446
7,282
-
-
-
-
-
10,801
6,129
-
-
-
28,505
10,462
-
-		 990,014
10,557
2,125		 285,037
32,405
11,174		 28,505
-
-		 313,542
32,405
11,174
12,682 - 12,682 43,579 - 43,579
1,463,836 10,462 1,474,298 726,287 28,505 754,792
Unrestricted
£
3,000
602,000		 Restricted
£
-
-		 2021
Total
£
3,000
602,000		 Unrestricted
£
4,598
355,326		 Restricted
£
-
-		 2020
Total
£
4,598
355,326
605,000 - 605,000 359,924 - 359,924

29

Faculty of Medical Leadership and Management

Notes to the financial statements

For the year ended 31 December 2021

5a Analysis of expenditure (current year)

ear)
Raising
funds
(including
costs of
trading)
£
211,856
-
-
269,009
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Charitable activiti es Governance
costs
£
23,356
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Support
costs
£
95,945
17,125
75,529
-
-
-
-
-
-
-
-
12,461
75,969
45,147
47,273
1,984
23,237
19,873		 2021 Total
£
785,255
17,125
75,529
269,009
49,302
23,100
123,807
21,339
18,134
(30,712)
36,896
12,461
75,969
45,147
47,273
1,984
23,237
19,873		 2020 Total
£
676,195
17,051
24,217
119,138
49,672
26,838
26,713
3,557
5,647
143,162
21,946
9,829
59,040
44,568
11,489
4,136
30,560
19,872
Professional
body services
£
188,808
-
-
-
49,302
23,100
-
-
-
-
-
-
-
-
-
-
-
-		 Development
, education &
training
Services
£
168,191
-
-
-
-
-
123,807
21,339
18,134
(30,712)
29,447
-
-
-
-
-
-
-		 FMLM Events
£
97,099
-
-
-
-
-
-
-
-
-
7,449
-
-
-
-
-
-
-
480,865
82,910
4,671		 261,210
111,926
6,306		 330,206
161,671
9,109		 104,548
58,036
3,270		 23,356
-
(23,356)		 414,543
(414,543)
-		 1,614,728
-
-		 1,293,630
-
-

30

Faculty of Medical Leadership and Management

Notes to the financial statements

For the year ended 31 December 2021

5b Analysis of expenditure (prior year)

Raising
funds
(including
costs of
trading)
£
184,859
-
-
119,138
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Charitable activities Governance
costs
£
22,379
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Support
costs
£
-
17,051
24,217
-
-
-
-
-
-
-
-
-
9,829
59,040
44,568
11,489
4,136
30,560
19,872		 2020 Total
£
676,195
17,051
24,217
119,138
-
49,672
26,838
26,713
3,557
5,647
143,162
21,946
9,829
59,040
44,568
11,489
4,136
30,560
19,872
Professional
body services
£
150,265
-
-
-
-
49,672
26,838
-
-
-
-
-
-
-
-
-
-
-
-		 Development
, education &
training
services
£
244,555
-
-
-
-
-
-
26,713
3,557
5,647
143,162
18,303
-
-
-
-
-
-
-		 FMLM Events
£
74,137
-
-
-
-
-
-
-
-
-
-
3,643
-
-
-
-
-
-
-
303,997
44,152
4,476		 226,775
59,606
6,042		 441,937
86,097
8,728		 77,780
30,907
3,133		 22,379
-
(22,379)		 220,762
(220,762)
-		 1,293,630
-
-

31

Faculty of Medical Leadership and Management

Notes to the financial statements

For the year ended 31 December 2021

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2021 2020
£ £
Depreciation 19,873 19,872
Interest payable 200 100
Operating lease rentals:
Property 49,053 48,243
Other 1,162 1,268
Auditor's remuneration (excluding VAT):
Audit 8,650 8,250
Other services 2,100 2,850

7 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
Social security costs
Employer’s contribution to defined contribution pension schemes		 2021
£
667,778
76,900
40,577		 2020
£
575,127
64,886
36,182
785,255 676,195

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


national insurance) during the year between:
2021 2020
No. No.
£70,000 - £79,999 - 2
£80,000 - £89,999 2 -
£110,000 - £119,999 - 1
£130,000 - £139,999 1 -

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £345,893 (2020: £297,008).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £0 (2020: £4,266.20 ) incurred by 0 members (2020: 5) relating to attendance at meetings of the trustees.

32

Faculty of Medical Leadership and Management

Notes to the financial statements

For the year ended 31 December 2021

8 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 13 (2020: 11).

Staff are split across the activities of the charitable company as follows (full time equivalent basis):


11).
Staff are split across the activities of the charitable company as follows (full time
Raising funds
equivalent basis):
Support
Professional body services
Development, education & training services
FMLM events		 2021
No.
2.2
3.2
2.9
1.5
2.4		 2020
No.
2.8
2.5
4.3
1.2
0.3
12.1 11.1

9 Related party transactions

There are no related party transactions to disclose for 2021 (2020: none).

10 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 FMLM Applied Limited gift aids available profits to the parent charity. Its charge to corporation tax in the year was:

2021 2020
£ £
UK corporation tax at 19% (2020: 19%) - 59

The amount recognised in 2020 is for the corporation tax charged on the 2019 profits. The cost was recognised in 2020, in line with the FMLM Applied Limited accounts.

11 Tangible fixed assets


2020, in line with the FMLM Applied Limited accounts.
Tangible fixed assets
At the end of the year
At the end of the year
At the start of the year
Charge for the year
At the start of the year
Additions in year
Cost
Depreciation
Net book value
At the end of the year
At the start of the year
The group and charity		 Fixtures and
fittings
£
1,560
-		 Leasehold
improvement
£
58,057
-		 Total
£
59,617
-
1,560 58,057 59,617
1,040
520		 38,704
19,353		 39,744
19,873
1,560 58,057 59,617
- - -
520 19,353 19,873

33

Faculty of Medical Leadership and Management

Notes to the financial statements

For the year ended 31 December 2021

12 Subsidiary undertaking

The charitable company owns the whole of the issued ordinary share capital of FMLM Applied Ltd, a company registered in England. The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are gift aided to the charitable company. Kirsten Armit and Jenny Ehrhardt are also directors of the subsidiary. A summary of the results of the subsidiary is shown below:


of the subsidiary is shown below:
Management charge payable to parent undertaking
Profit / (loss) for the financial year
Turnover
Cost of sales
Profit / (loss) on ordinary activities before taxation
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Funds
Gross profit
Administrative expenses
Tax paid
Retained earnings
Total retained earnings brought forward
Profit / (loss) for the financial year
Distribution under Gift Aid to parent charity
Total retained earnings carried forward		 2021
£
602,000
(266,355)		 2020
£
355,326
(106,388)
335,645
(18,502)
(262,247)		 248,938
(21,289)
(214,401)
54,896
-		 13,248
(59)
54,896 13,189
13,189
54,896
(13,188)		 162,946
13,189
(162,946)
54,897 13,189
707,692
(652,795)		 673,865
(660,676)
54,897 13,189

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

13 Parent charity

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

2021 2020
£ £
Gross income 1,819,074 1,344,110
Result for the year 489,204 178,217

14 Debtors

Debtors
Accrued income
Trade debtors
Other debtors		 2021
2020
£
£
720,453
214,159
16,025
8,295
33,560
164,091
770,038
386,545
The group		 2021
2020
£
£
409,697
213,168
16,025
8,729
33,560
148,768
459,282
370,665
The charity
770,038 386,545 459,282 370,665

34

Faculty of Medical Leadership and Management

Notes to the financial statements

For the year ended 31 December 2021

15 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Accruals
Trade creditors
Taxation and social security
Deferred income (note 16)
Amounts owed to subsidiary
Other creditors		 2021
2020
£
£
86,643
12,973
-
-
42,492
44,581
94,088
71,889
592,938
491,924
6,491
2,632
822,652
623,999
The group		 2021
2020
£
£
58,682
13,605
16,307
3,632
27,131
20,082
94,088
71,889
52,879
10,462
6,342
1,796
255,429
121,466
The charity
822,652 623,999 255,429 121,466

16 Deferred income

Deferred income comprises membership fees, development, education & training services fees and fees for consultancy work received in advance.


consultancy work received in advance.
consultancy work received in advance.
consultancy work received in advance.
2021
2020
£
£
Balance at the beginning of the year
491,924
160,453
Amount released to income in the year
(491,924)
(160,453)
Amount deferred in the year
592,938
491,924
Balance at the end of the year
592,938
491,924
General
unrestricted
£
£
-
-
1,344,435
-
1,344,435
-
Net assets at 31 December 2021
Designated
funds
The group
Tangible fixed assets
Analysis of group net assets between funds (current year)
Net current assets		 2021
2020
£
£
10,462
40,306
(10,462)
(40,306)
52,879
10,462
52,879
10,462
Restricted
funds
Total funds
£
£
-
-
44,374
1,388,809
44,374
1,388,809
The charity
592,938 491,924 52,879 10,462
£
-
-
Designated
funds		 Restricted
funds
£
-
44,374		 Total funds
£
-
1,388,809
1,344,435 - 44,374 1,388,809

17a Analysis of group net assets between funds (current year)

17b Analysis of group net assets between funds (prior year)

Tangible fixed assets
Net current assets
Net assets at 31 December 2020		 General
unrestricted
£
19,873
774,453		 Restricted
funds
£
£
-
-
-
63,572
-
63,572
Designated
funds		 Restricted
funds
£
£
-
-
-
63,572
-
63,572
Designated
funds		 Total funds
£
19,873
838,025
794,326 - 63,572 857,898

35

Faculty of Medical Leadership and Management

Notes to the financial statements

For the year ended 31 December 2021

18a Movements in funds (current year)

Total restricted funds
General funds
18b
Total restricted funds
General funds
Total unrestricted funds
Total funds
Restricted funds:
Expert Leadership Development
Programme
Unrestricted funds:
Movements in funds (prior year)
Restricted funds:
Total unrestricted funds
Total funds
Expert Leadership Development
Programme
Career Development for UK doctors
registered with the General Medical
Council
Unrestricted funds:
Career Development for Medical
Leaders
Career Development for Medical
Leaders
Career Development for UK doctors
registered with the General Medical
Council		 £
11,734
21,838
30,000
At 1 January
2021		 £
10,462
30,151
-
Income &
gains		 £
(29,447)
(30,364)
-
Expenditure
& losses		 £
-
-
-
Transfers		 £
(7,251)
21,625
30,000
At 31
December
2021
63,572 40,613 (59,811) - 44,374
794,326 2,105,026 (1,554,917) - 1,344,435
794,326 2,105,026 (1,554,917) - 1,344,435
857,898 2,145,639 (1,614,728) - 1,388,809
£
1,532
-
-
At 1 January
2020		 £
28,505
165,000
30,000
Income &
gains		 £
(18,303)
(143,162)
-
Expenditure
& losses		 £
-
-
-
Transfers		 £
11,734
21,838
30,000
At 31
December
2020
1,532 223,505 (161,465) - 63,572
827,906 1,098,585 (1,132,165) - 794,326
827,906 1,098,585 (1,132,165) - 794,326
829,438 1,322,090 (1,293,630) - 857,898

36

Faculty of Medical Leadership and Management

Notes to the financial statements

For the year ended 31 December 2021

18b Movements in funds (prior year continued)

Expert Leadership Development Programme

A grant provided by the Dinwoodie Charitable Company in respect of the delivery of an Expert Leadership Development Programme. The aim of the project is to design and deliver a unique bespoke programme of leadership and management development which is generalisable across the profession to guarantee a healthy pipeline of doctors prepared and well equipped to take on major roles in leading health services in the UK, and to undertake a detailed evaluation of the programme to include measurement of the change in leadership capability of the participants.

Career Development for Medical Leaders

A grant provided by the Dinwoodie Charitable Company in respect of the delivery of an online learning platform for medical leadership and management training for the medical profession. The aim of the project is to develop a fully interactive digital toolkit which will provide a comprehensive 'cradle to grave' career map with links to a broad collection of educational materials and advice for doctors to develop as medical leaders. In addition it is intended that this resource will provide support to doctors having to meet the compulsory requirements of revalidation specifically with regard to the domain of leadership.

Career Development for UK doctors registered with the General Medical Council

A fund to be used for the enhancement of the management and leadership skills and abilities of individual UK doctors registered with the General Medical Council. To be used to increase the leadership and management experience, skills and abilities by gaining experience of the healthcare systems in nations or regions in which the individuals do not currently work.

19 Operating lease commitments

The charity and group's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:


for each of the following periods:
Less than one year
One to five years		 2021
2020
£
£
49,053
44,223
66,375
-
115,428
44,223
Property		 2021
2020
£
£
1,162
1,162
-
-
1,162
1,162
Equipment
115,428 44,223 1,162 1,162

20 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

37