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2021-12-31-accounts

Educating Improving Influencing RCP annual report 2021 Royal College of Physicians 'Ir

Contents

Contents
Who we are and what we do 3
Our vision, mission and values 4
Foreword 5
Report of trustees 6
Educating physicians and supporting them to fulfil their potential 8
Improving health and care and leading the prevention of ill health across communities 13
Influencing the way that healthcare is designed and delivered 18
Our enablers 23
Looking ahead 25
Our structure, governance and management 28
Statement of trustees’ responsibilities 31
Risk management 33
Officers and key staff of the RCP 36
Summary of our income and expenditure 42
Our financial policies 43
Financial review 47
Independent auditor’s report to the trustees of the RCP 49
Financial statements 52
Consolidated statement of financial activities 52
Consolidated and RCP balance sheets 54
Consolidated statement of cash flow 56
Notes to the financial statements 58
Awards, fellowships and major donors 86
Administrative information 88

RCP annual report 2021

2

Who we are and what we do

The Royal College of Physicians (RCP) is a professional membership body for physicians, with over 40,000 members and fellows around the globe working in hospitals and communities across 30 medical specialties. Physicians diagnose and treat illness, and promote good health. They care for millions of medical patients with a broad range of conditions, from asthma and diabetes to stroke and yellow fever.

Everything that we do at the RCP aims to improve patient care and reduce illness. Our work is patient centred and clinically led. We drive improvement in the diagnosis of disease, the care of individual patients and the health of the whole population, both in the UK and across the globe. We work to ensure that physicians are educated and trained to provide high-quality care. We also develop doctors to become leaders, providing advice and expertise to deliver service improvements across the NHS and more widely.

Public benefit

The Royal College of Physicians (RCP) was established by royal charter in 1518. It is a registered charity, and the trustees are mindful of their duty to ensure that the charity’s purpose accords with the objects set out in its governing document (the charter).

Uniquely for the time, through the charter the king established the RCP in perpetuity as a professional body in the name of the public benefit. He empowered it to set standards by regulating practice, to protect the public.

Today the RCP continues to focus its work to support high standards of medical training and patient care through activities within the meaning of charitable purpose as defined by the Charities Act 2011 that are carried out for the general public benefit.

In particular, most of our activities fall within the purposes of the advancement of health or the saving of lives; the advancement of education; and the advancement of the arts, culture, heritage or science.

Our work in these areas is made possible through the involvement of our fellows and members wherever they work, in the UK or overseas, and is summarised annually in this report.

RCP annual report 2021

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Our vision, mission and values

Our vision, mission and values underpin and guide our work.

Our vision

As the leading body for physicians in the UK and internationally, the RCP envisages a world in which everyone has the best possible health and healthcare.

Our mission

The RCP understands its purpose in realising that vision to be:

Our values

We are committed to taking care , learning and being collaborative . These values drive the way we behave, how we interact with each other, and how we work together to achieve our vision and improve patient care.

RCP annual report 2021

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Foreword

The year has not been without challenge and the physician workforce has been under pressure both in the UK and across the globe in a way not seen in our lifetime. The response of physicians has been inspiring and gives us much hope for the future.

Sir Andrew Goddard, RCP president Dr Ian Bullock, chief executive

For many organisations, the enduring impact of the pandemic presented a number of challenges in 2021. For the RCP, the past year has been one of recovery and restructure. Our focus was on re-establishing the delivery of our core charitable purpose having lost a third of our income in 2020. In doing so, we have moved to a financially balanced position and with our influence stronger than ever. This says much about our staff and our membership.

Reflecting on the year, we are particularly proud of two significant milestones – a growing membership which has surpassed our previous strategy target of 40,000 and the opening of The Spine, our new home in Liverpool. These achievements demonstrate both our commitment to continued innovation and our impact as a modern professional organisation. The RCP logo literally shines out over the city of Liverpool and our presence has stimulated inward investment into the Knowledge Quarter and positively impacted on the area’s health economy – a powerful reminder of our continuing responsibility and relevance.

Prior to the pandemic our members told us that we should focus our efforts on our three strengths: educating, improving and influencing. This report shows how that has been achieved across all the different parts of the college. Our new strategy for 2022–24 cements these three priorities firmly in our everyday work and will guide our future activity.

We are proud to have been able to lead the RCP over the past year but know that the successes and achievements outlined in this report are down to many. We would like to thank the Board of Trustees under the skilled leadership of David Croisdale-Appleby, the RCP Council, officers and volunteers, our regional and global networks and, of course, our staff for all that they have done to support the RCP. 2022 will see a new president and new challenges and we look forward to building on the successes of the past year.

We are particularly proud of two significant milestones – a growing membership which has surpassed 40,000 and the opening of The Spine, our new home in Liverpool.

RCP annual report 2021

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Report of trustees

The trustees of the RCP are pleased to present their annual report for the year ended 31 December 2021. The report presents the RCP’s activities, significant achievements and successes in 2021.

Chairing the Board of Trustees is a great privilege, and I wish to place on record my gratitude to my fellow trustees, whose thoughtful and careful governance of the RCP has been so effective in navigating us through to our current strong and stable position.

Professor David Croisdale-Appleby OBE

Message from the chair of the Board of Trustees

I am inspired by how much the RCP has achieved in 2021 despite the continuing challenges presented by COVID-19. Our physicians in all countries have been under unprecedented pressure and they are owed a very great debt of gratitude for the immense efforts they have made during the long duration of the pandemic. I would also like to express my appreciation to our president Andrew Goddard and the officers of the RCP for the national and international leadership they have shown.

The reduction in income in 2021, while not as severe as in 2020, made this year a further financially challenging one as restrictions associated with the pandemic continued. This made the return to an operating surplus in 2021 an excellent achievement. It is a tribute to the efforts of the leadership of the CEO and staff who worked hard to cut non-essential costs and mitigate the ongoing impacts of the pandemic on our priority areas of educating, improving and influencing – the key themes of this annual report and the RCP’s new strategy.

Among the many highlights of a year of achievements mentioned in this report, the opening of RCP at The Spine in Liverpool marked the realisation of the vision to expand the RCP’s reach and facilities to members and fellows in the north.

The Federation of the Royal Colleges of Physicians of the UK

The Federation of the Royal Colleges of Physicians is a collaboration between the Royal College of Physicians of Edinburgh, the Royal College of Physicians and Surgeons of Glasgow, and the RCP. Together, the three colleges represent more than 60,000 physicians worldwide.

The Federation develops and delivers services to support doctors at every stage of their careers, including:

Highlights of key Federation activities are included in this report.

RCP annual report 2021

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Our new strategy

The RCP is both a professional membership body and a registered charity. We developed our new strategy in 2021 following consultation with our members and stakeholders and it is mindful of our responsibilities in both of these roles. Our 3-year plan for 2022–24 identifies three main priorities:

These priorities are underpinned by a set of ‘enablers’: close engagement with the RCP membership, patient and carer involvement, a focus on diversity and inclusion, good governance and working in a sustainable way. This annual report sets out our activities and achievements in 2021 under the three priority areas with a section covering our enablers.

RCP annual report 2021

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Educating physicians and supporting them to fulfil their potential

We strive for excellence in the training and continuing professional development of physicians and physician associates throughout their multifaceted careers. We develop them as career-long learners and improvers, leaders, educators and researchers. We formulate and present the knowledge of our members for wider public benefit.

RCP annual report 2021

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Key educating activities in 2021

Over

800 consultant job descriptions were approved by RCP regional advisers

Our Assessment Unit assessed over

3,500

candidates

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3,500
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Over

400

RCP members completed our new interview skills training course

Nearly

8,500

doctors sat MRCP(UK) exams online

We supported over

1,500

international medical graduates to apply to work and train in the NHS

Over

1,200 delegates attended our award-winning annual conference Medicine 2021

More than

18,000

health professionals attended over 80 events hosted on RCP Player, our medical streaming service

We moved into The Spine , our new building in Liverpool featuring state-of-the-art assessment facilities

200,000

Our Medicine podcasts were downloaded more than 200,000 times

RCP annual report 2021

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Educating

Our activities and achievements

Despite the enduring impact of COVID-19 on our activities in 2021, we continued to deliver examinations as well as excellent teaching and training opportunities, conferences and CPD. We worked hard to ensure that clinicians taking crucial exams experienced the least disruption possible, taking innovative steps to move courses and exams online and adding extra capacity.

Assessment and exams

The RCP Assessment Unit runs physician associate national examinations as well as assessments for specialty diplomas and MRCP(UK) PACES exams. Following exam cancellations early in the year due to COVID-19, we restarted exams in March, adding extra slots to help support the backlog of candidates. The unit assessed more than 3,500 candidates throughout the year.

New software allowed us to introduce online exams in June. A total of 300 candidates in 60 countries sat the Diploma in Tropical Medicine and Hygiene exam, the first exam to go online. Following this successful pilot, online exams became the new norm for all our knowledge-based assessments.

Through our work with the Federation of Royal Colleges of Physicians, we moved all MRCP(UK) part 1 and part 2 written exams online in the UK and some international centres. Nearly 8,500 candidates sat them in 2021.

The Federation developed the framework for a new PACES exam model, adapted for the pandemic situation and delivered by the three royal colleges of physicians to over 2,500 UK candidates.

There was no change in the academic standard, validity or reliability of the exam. We maintained international delivery of written exams and restarted PACES exams in the majority of international centres in late 2021.

Supporting physicians throughout their careers

Our year began with a fully virtual annual conference in January. With over 1,200 delegates, Medicine 2021 offered a wealth of fantastic learning opportunities with key speakers including Professor Chris Whitty and Sir Michael Marmot.

Our medical streaming service RCP Player hosted over 80 events offering a varied and stimulating programme, including:

We supported doctors with their continuing professional development (CPD), delivering workshops in virtual classrooms as well as COVID-safe face-to-face teaching in both London and Liverpool. Over 4,000 physicians attended our workshops, postgraduate courses and unique leadership initiatives such as the Emerging Women Leaders and Chief Registrar programmes. Many enjoyed the pioneering new technology at our Wolfson Virtual Theatre in The Spine, designed to support multiple learners.

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Educating

RCP OnlineEd, our platform for online learning, was accessed over 6,300 times. And our RCP Medicine podcasts went from strength to strength with over 200,000 downloads in 2021 – the series on health inequalities proving particularly popular.

We also developed an exciting range of new CPD programmes to support our members, including: a year-longnew consultant, a virtual PACES revision course, a strategic change ~~a~~ Six-step course for the ~~—~~ module for senior clinical leaders, and e-learning on obesity and smoking cessation.

Patient safety knowledge and skills were supported through a webinar on patient safety fundamentals and a themed edition of our Future Healthcare Journal .

Federation’s CPD arm approved a wider variety of digitally delivered CPD, including over 4,000 applications for e-learning, livestreamed events and webinars. This allowed our members and fellows to record online learning for their CPD following the decrease in live events. The JRCPTB ePortfolio was also developed further to improve the ability of trainees to record their training and to aid review of career progression.

Our first virtual Faculty of Physician Associates (FPA) conference took place in November with 865 registered delegates. We created exclusive member-only resources to support PA career journeys and developed a new online revision aid – the PA question bank is due to launch in 2022 and will include hundreds of exam practice questions.

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Educating

Curriculum development

More people than ever have multiple health conditions due to the increasingly older population in the UK. In order to focus on the broader training and generalist skills required to care for this group of patients, we worked with the JRCPTB throughout a multi-year project to integrate internal medicine capabilities into the physician specialty curricula and create a new standalone internal medicine curriculum (stage 2). The new curricula have been approved by the GMC and will be implemented in 2022. We are delighted that this substantial project is completing on time and secure transition arrangements are in place.

We supported development of the national curriculum and national licensing examinations for PAs after the profession becomes statutorily regulated.

We were commissioned by Health Education England to develop national curricula for advanced clinical practitioners, initially in three specialties with work continuing in 2022.

On behalf of the Academy of Medical Royal Colleges (AoMRC) and working in partnership with the National Institute for Health Research (NIHR) we are developing a Clinician Researcher Credentials Framework. We launched pilot versions of the core research practice element in 2021.

Our international work

Due to COVID-19, most of our international workshops and development activities moved online in 2021. We delivered 19 educational events for RCP members and fellows outside of the UK, attracting over 4,800 participants.

We ran several partnership webinars to provide dedicated COVID-related medical education to colleagues across South Asia, expanded our faculty development work with the Swiss Medical Institute and developed leadership training for women in developing countries with a pilot programme planned for 2022.

Our new Global strategy outlines support for our international members and fellows in 119 countries and maps out plans to grow and diversify our membership through to 2024.

We supported over 1,500 international medical graduates in their application to experience UK training. The Medical Training Initiative facilitates visa and GMC registration while providing excellent candidates to the NHS workforce.

A new RCP-Iraq membership network led by RCP international adviser Dr Hilal Al-Saffar offers a tailored medical education course and research course to address local needs. The network has driven an eightfold increase in RCP membership in Iraq.

Supporting recruitment of doctors

More than 800 consultant job descriptions were approved by RCP regional advisers with over 50% benefiting from recommendations made in an RCP review. RCP representatives helped to appoint to 475 consultant, honorary consultant and staff, associate specialist and specialty (SAS) doctor posts.

A total of 417 RCP members completed our newly launched interview skills training course, with 77% of an eligible 248 members registered to act as RCP representatives on consultant interview panels.

We developed guidance and support to help with the recruitment of SAS doctors into the new specialist doctor grade, training 20 SAS assessors to represent the RCP on interview panels.

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Improving health and care and leading the prevention of ill health across communities

We improve the quality, outcomes, safety and experience of patient care by developing and setting standards. We support the clinical community to embed those standards by enabling and sharing local, regional, national and international quality and service improvement initiatives. We continually seek to identify and respond to the improvement challenges that our members face in practice.

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Key improving activities in 2021

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We assessed
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72
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72

clinical services for accreditation in one of our five programmes

Almost 250 chief registrars have benefited from our flagship leadership programme since its launch in 2016

250

We produced

4

Almost

new clinical guidelines on behalf of NICE

100

clinicians completed our training in quality improvement for respiratory care

We completed 12

invited reviews to support healthcare organisations

Over

5 million

procedures were captured on the National Endoscopy Database

We published key guidance on good practice for modern ward rounds

We published 9

national audit reports covering COPD, asthma, lung cancer care, inpatient falls, hip fracture care and fracture liaison services

RCP annual report 2021

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Improving

Our activities and achievements

We worked directly with physicians and their teams to support quality improvement initiatives and design person-centred services. Although things had to be adapted for the pandemic, our audit and accreditation programmes successfully supported many clinical services to aspire to higher standards. We developed new resources and involved patients and carers to help shape best practice.

Audit and service review

The RCP continued to be commissioned by HQIP to deliver three national clinical audit programmes:

In 2021 we published nine reports on COPD, asthma, lung cancer care, inpatient falls, hip fracture care and fracture liaison services. We published a FFFAP patient involvement guide for NHS organisations to share good practice and tips.

Our invited reviews support healthcare organisations requiring independent and external advice. We completed 12 invited reviews during the year, adapting them to run virtually. We contributed to the Academy of Medical Royal Colleges (AoMRC) framework for invited reviews along with other royal colleges and professional bodies.

Accreditation

We continued to assess the quality of clinical services through our accreditation programmes for endoscopy, allergy, pulmonary rehabilitation, primary immunodeficiency and liver services. These programmes went from strength to strength with 34 new services registering in 2021. Feedback highlighted that RCP accreditation is a valuable way to support the restoration of services following the impact of the pandemic.

We delivered 72 accreditation assessments either remotely or with remote and on-site elements. Early feedback from clinical and lay assessors indicates that the process has remained rigorous. We continue to seek and act on feedback to ensure we deliver assessments robustly and to high standards.

The JAG Endoscopy team launched updated standards in October, which streamlined the process for services benchmarking themselves against the standards. A major new version of JETS, the JAG Endoscopy Training System, was developed and is due to launch in 2022.

The JAG National Endoscopy Database (NED) is the only database of its kind that collects real-time clinical data from endoscopy reporting systems. It has proven to be an invaluable source of intelligence about the impact of COVID-19 on services in terms of recovery. NED began collecting data in 2016, and during 2021 over 5 million procedures were captured. In 2022 we will explore opportunities to enable this unique platform to support broader visions around transformation of endoscopy services and training in the UK.

RCP annual report 2021

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Improving

Training and development

Our flagship Chief Registrar Programme supports doctors in training to lead service improvements in the NHS. It continued to grow in 2021 with over 90 participants from 57 trusts and health boards joining. Almost 250 medical trainees have completed this highly regarded development programme to date.

Over 500 trainees participated in our first virtual regional poster competition jPa‘;aeI to showcase outstanding projects and initiatives.

I We worked with the NHS Getting it Right First Time (GIRFT) programme, patientfacing teams and the wider NHS to deliver a series of four webinars showcasing best practice and expected standards of care in acute medical pathways. We also ran a webinar with NHSX on digital innovations in cardiology.

The NACAP developed local capacity to deliver improvement with a funding opportunity for respiratory care teams in England and Wales. Nearly 100 individuals from 37 participating teams completed online training in quality improvement skills and 14 people received training to provide coaching support to local teams implementing improvement projects. By establishing coaches as a source of support, we hope that local teams will maintain the momentum needed to achieve sustainable improvement. The FFFAP designed and launched an improvement collaborative for clinical teams participating in its three audits (National Audit of Inpatient Falls, National Hip Fracture Database and Fracture Liaison Service Database).

Further afield, the Federation awarded accreditation to Iceland’s stage 1 internal medicine training (IMT) programme (equivalent to UK training). Accreditation was also awarded to the IMT stage 1 programmes in Dubai and Thiruvananthapuram (Trivandrum) in India. We also provided online support to ARCP panels at other sites in India that deliver UK equivalent IMT, pending opportunities for face-to-face visits to accredit their programmes. The first cohort of six trainees who completed UK equivalent IMT in our partnership programmes in India were successful in their bid to start higher specialty training in the UK.

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Improving

New guidelines and resources

We published a report on good practice for modern ward rounds and supported the implementation of its recommendations via an improvement collaborative with the NHS Emergency Care Improvement Support Team and Royal College of Nursing. Participating teams reported delivering improvements in multiprofessional patient-centred care on wards. Patient participation was a key theme with our Patient and Carer Network (PCN) contributing to a series of national learning events to ensure the patient/carer’s perspective helped shape this improvement work.

As part of a focus on medicines safety, we launched a new toolkit to support medication safety at hospital discharge. It offers guidance for teams to improve their local processes. In addition, we worked alongside the PCN to produce a checklist to support patients to use medicines safely when leaving hospital. It aims to help reduce medication errors in this important area of safety.

The ~~ee~~ NHS Steroid Emergency Card was implemented for patients across the four UK nations. This initiative was led by the RCP with the Society for Endocrinology. Our National Guideline Centre developed several significant guidelines that were published by NICE this year. These included atrial fibrillation, sleep apnoea, heart valve disease, and chronic pain and ME/CFS.

Our study on the quality of care given to hospital patients with COVID-19 in the UK was published in early August. Using retrospective case record review, it concluded that overall care was judged to have been adequate or better in 96.5% of the patient cases. The report made recommendations for the NHS and healthcare teams.

Progress continued on a working party report on pharmacogenomics, and guidelines on the diagnosis of fibromyalgia syndrome – both will be published in 2022.

With support from NHSX, work began on redeveloping the RCP’s Medical Care website into a modern, engaging portal showcasing innovative practice to support the delivery of long-lasting improvement in medical care. The new ‘Medical care – driving change’ portal will go live in 2022.

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Modern ward rounds
Good practice for multidisciplinary inpatient review
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Influencing the way that healthcare is designed and delivered

We provide leadership to shape government, health and care policy and practice. We constantly improve our understanding of the drivers of good health, the physician community and the NHS. We are the voice of medicine and set standards for medical care, working alongside the wider medical community, patients and our partners to develop, promote and publish solutions.

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Key influencing activities in 2021

The Inequalities in Health Alliance grew to over 200

organisations campaigning for a cross-government approach to improve health

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150,000
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Nearly

----- Start of picture text -----
We published over
30
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reports, toolkits and guidelines to support clinicians to improve practice

Described as a ‘major morale booster’, our fortnightly president’s bulletin provided key information and support to our members

ClinMed promoted good practice with almost

400,000

article downloads per month

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The RCP made
11,000
the headlines with
more than 11,000
appearances in
the media
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150,000 people now follow us on social media

Our new

We spread the word with over 4 million visits to our website

smoking and health report

set out recommendations for the forthcoming Tobacco Control Plan

Almost 9,000 responses to our member surveys on COVID-19 shaped our campaigning with government

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Influencing

Our activities and achievements

Once again, COVID-19 highlighted the crucial importance of strategic communications and engagement for our influencing work. We communicated regularly with our members to keep them informed of the latest guidance and developments. Regular member surveys allowed us to advocate for physicians as they navigated this extraordinary period. With increased activity and output across all areas, we made significant progress against our key influencing priorities in health inequalities, workforce, integration and research.

Our policy priorities

Our Double or quits report led to increasing calls for expanding the number of medical school places, while the annual physician census furnished parliamentarians and others with insightful data on the state of the medical workforce.

Health inequalities

Convened by the RCP in 2019, the Inequalities in Health Alliance gathered momentum in 2021 with 200 member organisations now signed up to campaign for a cross-government strategy. A letter to the prime minister was signed by over 90, a high-profile webinar was held in June, and a day of action held in September involving actor Simon Callow.

We worked with other key royal colleges and think tanks to secure amendments to the Health and Care Bill on health inequalities. We also worked with NHS England’s new health inequalities team and supported work on obesity, the climate emergency and alcohol harm.

Workforce and integration

We focused much energy on influencing the new Health and Care Bill. We mobilised the support of over 100 health and care organisations for an amendment advocating for regular, independently verified workforce projections. The amendment was supported by cross-party MPs and peers as well as the Health and Social Care Select Committee. The House of Lords voted to pass the amendment twice with significant margins, but unfortunately the House of Commons – which has the final say – voted to ultimately reject it. Although it did not make it into the final legislation, this campaign marked a significant moment for our work to support long-term workforce planning for the NHS and social care.

Double or quits: a blueprint for expanding medical school places Royal College of Physicians Double or quits: a blueprint for expanding medical school places 8 © = 9 ov, © © |° 1 © Royal College of Physicians 2021

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Influencing

Research

Following the launch of our online research and innovation hub in 2020, we continued to work with partners to make more research in the NHS a reality. After welcoming the government’s vision for clinical research in March, in July we held the first ‘Research for all’ summit, bringing together NIHR, DHSC, GMC, NHS England and UKRD.

Our influence helped to push the clinical research agenda in a number of ways in 2021:

We continued to influence wider healthcare safety and improvement though contributing to external consultations such as with All Party Parliamentary Groups and by being key members of NHS boards for acute deterioration, medicines safety, and the National Clinical Audit and Patient Outcomes Programme.

Media and engagement

The RCP’s profile continued to grow with 11,000+ appearances in the media in 2021. Data from our series of COVID-19 surveys, which received over 8,800 responses from members, led to a proliferation of stories and surfacing of issues across digital, print and broadcast media.

Digital engagement increased with website visits up by 10% to 4,233,020, and we grew our following on social media by 11% to 144,849 across Twitter, Facebook, LinkedIn and Instagram.

Employee comms and engagement were hugely important during this unsettling period for our staff. Our HR and internal comms teams led key activities including Core Brief meetings of senior managers, all staff meetings and our weekly email bulletin Parklife Weekly.

Data from our series of COVID-19 surveys ... led to a proliferation of stories across digital, print and broadcast media.

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Influencing

Publishing

We moved our journals Clinical Medicine and Future Healthcare Journal fully online – a major project resulting in environmental benefits as well as financial savings. Submissions remained high and engagement continued to increase with average monthly downloads from both journals reaching almost 470,000 (compared with 312,000 in 2020). Our membership magazine Commentary featured interviews with leading figures, including Dame Sally Davies, Professor Mala Rao and Professor Chris Whitty, and a focus on SAS doctors and PAs.

To support our members and the wider health community in delivering the best care and practice, we published over 30 reports, toolkits and guidelines. Key publications included guidance on eating and drinking diffculties, effective ~~—~~ modern ward rounds 60 years after the RCP’s first report on tobacco, a new report onand the results of the 2020 consultant census. Almost smoking and ~~__~~ health reviewed the UK’s progress in reducing smoking prevalence and set out recommendations for the forthcoming Tobacco Control Plan.

Our work with NHS GIRFT programme leaders enabled the sharing of lessons learnt from the GIRFT reports as well as building a platform for implementation with physician leaders.

Promoting medicine and the RCP

We hosted a number of high-profile events in The Spine which helped to cement our new role as a key player in Liverpool. This included the prestigious Harveian Oration, which was given by Professor Sir Jonathan Van-Tam and focused on respiratory virus vaccines, therapeutics and public health policy.

Our museums team developed a highly effective digital programme on the history of medicine and promoting public awareness of the RCP. We held 45 virtual events, tours and talks, including four events run in collaboration with external partners and 17 tours. These were received positively, with our RCP Unseen online exhibition receiving a 4/5-star review in The Times.

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Our enablers

Our enablers form threads that run through and support each of our three priorities.

1. Membership engagement

The opening of The Spine took place in 2021, marking the culmination of our 5-year vision to transform our reach and facilities for members in the north.

Our conferences and events provided a key platform for engaging with our members and fellows. With over 1,200 delegates, Medicine 2021 was our largest and most successful annual conference to date. We were delighted to win best large membership event in the annual Memcom Awards for the second time.

RCP Player continued to offer new opportunities for membership engagement with over 80 events hosted across the year. We saw 11,000 members and over 7,000 non-members interact with the RCP via a wide-ranging programme of events – a huge increase compared with around 3,000 in recent pre-pandemic years.

We carried out an annual survey on the experiences of and outcomes for doctors who completed their certificate of completion of training during 2019 and 2020.

Our popular Excellence in Patient Care Awards had over 120 entries in 2021 highlighting innovative and outstanding projects across the NHS.

2. Working with patients

Our Patient and Carer Network members contributed invaluable expertise to a substantial number and variety of RCP projects and guidance throughout 2021. These included the modern ward rounds report, medicines safety materials, FFFAP Patient and Carer Panel, clinical research e-learning modules, the six-step course for consultants, FPA Board, Chief Registrar Programme and Future Healthcare Journal .

We increased regional engagement with our college tutor (CT) and associate college tutor (ACT) community. A total of 346 delegates registered to attend our virtual CT and ACT conference and we were delighted that 100% said they would recommend it to a colleague.

We held our first SAS physicians week in July, highlighting SAS doctors working in education, research and leadership roles and demonstrating SAS careers as a viable alternative to the consultant role.

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3. Diversity and inclusion

We promoted diversity and a more inclusive face of the RCP. This encompassed an RCP-wide diversity and inclusion work programme, and publication of a 1-year on progress report of Ben Summerskill’s independent review into this area. Our new diversity in communications policy is leading to a more inclusive editorial approach, improved gender and ethnicity balance in our event speaker line-ups and plaudits from NHS England for our influence on the first Medical Workforce Race Equality Standard report.

We appointed four associate global directors and 14 additional international advisers (with a threefold increase in the number of women). They provided advice and insight into health systems and local epidemiology, assisting the RCP in influencing healthcare around the world.

Through our work with Federation, we investigated training data from an equality and diversity perspective. We made improvements to advance the quality of data collected in the ePortfolio and the provision of targeted information. This will improve trainees’ access to exams and applications for higher specialty training.

4. Governance and stakeholder engagement

Our annual general meeting and College Day were held as hybrid meetings to allow maximum participation by the membership during the pandemic. This format will be retained to increase engagement in the future.

RCP Council approved a new conduct scheme for our membership aligned to the RCP Code of Conduct, and we undertook a review of fellowship election processes to design a new fairer, more transparent system for launch in 2022.

We successfully completed the NHS toolkit process to facilitate data sharing with NHS partners into 2022.

We implemented a new cybersecurity training platform for staff and renewed our CyberEssentials Plus accreditation.

5. Sustainability

Following completion of the building and fit-out, RCP staff based at the William Henry Duncan building in Liverpool moved into The Spine in May 2021.

We worked to ensure The Spine is in a position to achieve BREEAM Excellence certification and the WELL Platinum Standard – an audited standard of wellness in buildings – making it one of the healthiest work and events spaces in the UK. We supported installation of one of the largest AV over internet protocol systems in Europe.

Our external events generated £1.979m in unrestricted funds in 2021 to support RCP activities.

We launched two new commercial events brands in London and Liverpool, RCP London Events and RCP Spaces at The Spine, future-proofing our business for a post-pandemic world. We were delighted to win bronze awards for best COVID-19 response in hospitality and best conference venue facilities at the London Venue and Catering Awards.

We worked to increase income potential by developing a robust tenant market for space in our London and Liverpool buildings. A number of new tenants have taken up occupancy.

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Looking ahead

In 2022 we plan to carry out the following activities, grouped under our three priority areas and enablers:

Educating

Improving

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Influencing

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Our enablers

1. Membership engagement

2. Working with patients

4. Governance and stakeholder engagement

5. Sustainability

3. Diversity and inclusion

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Our structure, governance and management

The RCP is committed to ensuring best practice governance and the Board of Trustees embeds the Charity Governance Code to ensure the organisation’s effectiveness:

The RCP is a registered charity (no. 210508), incorporated by royal charter dated 23 September 1518, affirmed by an act of parliament in 1523. The charter of 1518 was amended by a supplemental royal charter dated 11 March 1999. The governing instruments of the RCP are the royal charters, and the bye-laws as amended from time to time. The RCP is also registered at Companies House as a company incorporated by royal charter (no. RC000899).

Board of Trustees

The Board of Trustees is the RCP’s governing body and meets five times a year – four main quarterly meetings plus a November budget review meeting. It is responsible for:

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The Board of Trustees has the authority to delegate any of its powers to the RCP’s boards and committees. Ultimately, all decisions apart from changes to the bye-laws and regulations are either taken by or on behalf of the Board of Trustees, and reported at the annual general meeting.

The Board of Trustees comprises:

Trustees are inducted in the operations of the RCP as well as their statutory obligations as a charity trustee when they are appointed. The training requirement for trustees is kept under regular review. An online governance hub makes material more accessible to trustees and an online declaration of personal interests and good standing of trustees supports good governance processes.

RCP Council

Council meets six times a year. Its function is to develop RCP policy in relation to professional and clinical matters, and to give authority to:

There is one board with specific responsibility to the Council:

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RCP officers

The senior officers of the RCP (president, vice presidents, treasurer and registrar) are all trustees of the charity. Their involvement in all of the main boards and committees of the RCP ensures that due consideration is given to the RCP’s charter and bye-laws on every occasion.

Annual general meeting

The annual presidential election is held on the first Monday after Palm Sunday by act of parliament. The AGM was decoupled from the presidential election in 2020 and now takes place in September.

Fellows

Fellowship is the highest level of membership of the RCP and comes with many benefits and responsibilities. Fellows have distinguished themselves in the practice of medicine, medical science or medical literature. At the time of election, the fellow is normally a member of the RCP of at least 4 years standing, in a substantive consultant post for a minimum of 3 years, and making a significant contribution in one or more of these areas of practice. Fellows are nominated for election by Council and have the right to stand for office, to vote for officers and to attend and vote at the AGM.

Boards

There are four boards with specific responsibility to the Board of Trustees. They are:

Four further boards report on the operational work of the RCP under the strategy themes and report through the operational plan to the Board of Trustees:

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Finance and Resources Board

In 2021 the Finance and Resources Board met four times. It has responsibility for:

The Board is chaired by the treasurer, and its membership includes the president and registrar (both ex officio), two elected members of Council, two other fellows and up to five members from outside the RCP.

There are two committees with specific responsibility to the Finance and Resources Board. They are:

Audit and Risk Committee

This committee is responsible for internal controls, risk management and audit, leading to assurances on the veracity of the financial and management statements. During the year the committee commissioned two internal audits by Haysmacintyre, as part of a continuing series which seeks to examine and improve various financial and operational practices of the RCP.

Remuneration Committee

Statement of trustees’ responsibilities

The trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Charity law requires the trustees to prepare financial statements for each financial year in accordance with International Financial Reporting Standards (FRS102) and applicable law.

Under charity law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and the group and of the group’s net incoming or outgoing resources for that period. In preparing these financial statements, the trustees are required to:

This committee provides independent review and recommendations to the Board on the RCP’s remuneration policy, pay awards, senior staff performance reviews, and pay and related matters.

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The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s and the group’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and the group and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the royal charters and bye-laws. They are also responsible for safeguarding the assets of the charity and the group, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees of the charity are aware of their duty under section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission for England and Wales.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Key management personnel are considered to be those personnel who have the authority and responsibility for planning, directing and controlling the activities of the RCP. Key management personnel are remunerated within the RCP’s general staff policy for pay and reward that is competitive within the charity sector, proportionate to the complexity of each role, and responsible in line with our charitable objectives.

A large number of volunteers are involved with the RCP’s work, in the UK and abroad. The vast majority are doctors who are RCP members who support RCP activities, such as by being examiners, regional advisers, or representatives on consultant appointment committees. There are many more examples, and the RCP also has a Patient and Carer Network which allows members of the public to become involved. Medical staff give their own time, but also rely on NHS guidance about the ability to use NHS time for the greater benefit of the NHS.

Modern slavery statement

Pursuant to section 54(1) of the Modern Slavery Act 2015, the RCP has published a slavery and human traffcking statement on its website.

Management

Responsibility for the day-to-day operations of the RCP is delegated to the chief executive, who is accountable to the Board of Trustees. The management and staff of the RCP are structured to carry forward the work and achieve the objectives of the RCP, and to provide support services. Each department of the RCP is also overseen at a governance level by a designated officer.

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Risk management

The trustees have overall responsibility for risk management in the RCP. Agreed processes are in place by which the trustees review, identify and assess major risks and agree with management the controls that already are, or will be, put in place to manage those risks. These details form part of the risk register, which trustees regularly review in full. The controls put in place provide a reasonable but not absolute assurance that risks have been adequately mitigated.

Risk issues in the day-to-day operation of the RCP are delegated to management to monitor and implement appropriate control measures. Any new areas of risk identified are reported to the Audit and Risk Committee, including how they have been managed. The Audit and Risk Committee reports any areas of concern to the trustees, with recommendations for corrective action.

The principal categories of risk that the RCP monitored and sought to mitigate in 2021 and into 2022 are:

----- Start of picture text -----
Area of risk Risk Mitigating factors
----- End of picture text -----

COVID-19 Disruption to revenue streams due
to cancellation of exams, conferences
and events as a result of ongoing
pandemic impact
Potential impact on member engagement,
operational delivery and staff welfare due to
new flexible model of working		 >Strategic planning and additional resourcing to work through
examination candidate backlogs
>Strategic planning to safety-net event speaker and staff absence due to
isolation or illness
>Use of government furlough scheme until its end in October 2021
>Continuation of cost improvements, including job vacancies not being
replaced, reductions in workforce and savings in non-payroll costs
>Establishment of working groups looking at staff and estates related
issues
>Weekly communications huddle to address immediate policy and
communications requirements
>Implementation of policy positions from government relating to
Covid-19 protocols across the estates to mitigate and minimise risks for
the organisation
>Investment in digital solutions across the estate to facilitate self-service
virtual and hybrid meetings
>Establishing and utilisation of new digital channels
>Monitoring through staff, membership, and customer surveys

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----- Start of picture text -----
Area of risk Risk Mitigating factors
----- End of picture text -----
Governance The governance structure for Federation
activity is suboptimal, which could impact the
current effective relational ways of working,
impacting on sustainability of this key area
of income		 >Current memorandum of agreement (MoA) was agreed and signed in
December 2018
>Independent audit of the Federation undertaken in 2021
>Detailed operational plans in place
>Separation of fnancial reporting and audit of all fnancial aspects undertaken
>Implementation of Federation governance of federation board and federation
management committee to support delivery of operational planning and lines
of reporting back to the three college governance structures
>Ongoing review of all fnancial functions related to fnance and tax reporting
Estate
management		 Ageing (Grade I) estates infrastructure in
London, and the new estate in Liverpool
Size and fitness for purpose of estate for core
charitable purpose and strategy		 >A capable property and facilities team, supported by advisers CBRE
>Ongoing lease negotiations with the Crown estate
>Dedicated team leading on leasing opportunities for both estates to income
generate from surplus capacity
>Deployment of digital solutions across the estates to support meetings and events
>Governance and fnancial oversight plans in place
Operational
plans – RCP
at The Spine		 Ability to realise the benefits of RCP at
The Spine as set out in the business case
now the estate is open		 >Senior offcers and executive directors leading on opportunities for engagement
in Liverpool and the surrounding area
>Partnerships with Liverpool health partners, universities and other organisations
to establish and grow RCP presence
>RCP policy commitment to worth through the alliance on improving the quality
of health and access to health in Liverpool and the surrounding area
>Focus on fnancial management/planning, supported funding proposals
>Regular communication to staff and membership

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----- Start of picture text -----
Area of risk Risk Mitigating factors
----- End of picture text -----
Financial risks Obligations arising from the closed
defined benefit pension scheme, arising
from changing market conditions and
reassessment of benefits
Ability to generate income/fundraise
and grow/diversify the revenue base and
our ability to control costs and manage
inflationary pressures causing cash
management strain
Loss making trading activities		 >Updated triennial valuation dated 1 January 2021 to provide certainty over recovery
plan contributions and duration.
>Assumptions built into 2022 budget
>A strong Defned Beneft Trustee Board
>Increased focus on cash management, forecasting and longer-term planning.
>Established team assisting the RCP to raise funds for strategic purposes
>Proven success in delivering activities in a virtual and hybrid way
>Move to virtual events with lower costs in both the charity and trading company
to mitigate loss of income as a result of COVID-19
Environmental
or external
factors		 Government policy on the NHS and impact
on medical professionalism and standards,
while remaining aligned to the views of our
members
Delivering on our ambitions for
carbon neutrality and our impact on
the environment		 >Continued infuence on the engagement plans with our members and government
on NHS policy
>Continued reinvestment to modernising fuel effciency across the estates
>Reviewing and reducing our carbon footprint to travel
>Leading on technologies in the UK within our Liverpool estates having achieved
BREEAM Excellent Standard and the WELL Platinum Award
>Governance reviews underway of policies ensure they are supportive of reducing our
carbon footprint
Digital
capabilities		 Failure to invest and realise benefits from
development of digital infrastructure
to enhance members and stakeholder
experiences		 >Strategic investment in new website and digital technologies
>Establishment of digital engagement group
>Working in collaboration with digital lead and fellows to work across the
organisation in shaping the digital strategy
Cyber security Risks arising from cyber threats as a result
of credential compromise, data leaks or
network compromise		 >Mandatory training for all staff in GDPR and cyber security
>Corporate exercises to test the resilience of cyber security across the organisation
through vulnerability scans, penetration testing and other reviews
>Further training provided where further learning is identifed

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Officers and key staff of the RCP

The officers, trustees and councillors listed below served during 2021. Current lists can be found via www.rcp.ac.uk/about-us/ who-we-are/our-governance

Visitor

Her Majesty The Queen

Officers of the RCP

College officers represent the interests of our fellows and members. They provide strategic leadership and lead the way on policy development, playing an important role in representing physicians’ interests in the development of the profession and standards of healthcare.

Senior officers

College officers

Vice president for Wales Dr Olwen Williams OBE

Vice president – Global Dr Mumtaz Patel

Deputy treasurer Professor Simon Bowman

Linacre fellow Dr Joanna Szram

Harveian librarian Dr Louella Vaughan

Patient involvement officer Dr Amy Proffitt (appointed August 2021) Dr Helen Gentles (demitted July 2021)

President

Sir Andrew Goddard

Registrar

Dr Cathryn Edwards OBE (appointed May 2021) Dr Peter Belfield (interim registrar until June 2021, following the death of Professor Donal O’Donoghue in January 2021)

Treasurer

Professor Chuka Nwokolo CBE

Clinical vice president Dr Sarah Clarke

Censors

Dr Tun Aung (appointed August 2021) Dr Jyoti Baharani

Dr Celia Bielawski (demitted July 2021) Professor Rudolf Bilous Dr Manish Gautam

Dr Harriet Gordon (appointed August 2021) Dr Rasha Mukhtar Dr Catherine Sargent

Academic vice president

Professor Ramesh Arasaradnam OBE (appointed August 2021) Professor Cheng-Hock Toh CBE (demitted July 2021)

Vice president for education and training (senior censor) Professor Áine Burns

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Medical directors

Medical director of CME and CPD Professor Áine Burns

Medical director of publishing Professor Anton Emmanuel

Director, Medical Workforce Unit Dr Sarah Logan (appointed December 2021) Dr Nigel Trudgill (demitted November 2021)

Director, invited service reviews Dr Adam De Belder (appointed September 2021) Dr Peter Belfield (demitted August 2021)

Clinical leads

Clinical director for quality improvement and patient safety Dr John Dean

Clinical director for audit and accreditation Dr Jane Youde (demitted November 2021 – role not directly replaced)

Clinical director for digital health Dr Wajid Hussain

Editor-in-chief, Clinical Medicine and Commentary Professor Anton Emmanuel

Editor – Future Healthcare Journal Dr Kevin Fox Specialty and associate specialist (SAS) lead Dr Waleed Arshad

Examiners

RCP chief examiner Dr Emma Vaux OBE Supported by by four senior examiners:

Senior examiner: RCP PACES Dr Abdul-Majeed Salmasi

Senior examiner: Physician Associate National Examinations Jade Moore

Senior examiner: Diploma in Tropical Medicine and Hygiene Dr Uli Schwab

Senior examiner: Diploma in Geriatric Medicine Professor Michael Vassallo

Other senior roles

Deputy registrars Dr Alastair Gilmore Dr Sonia Panchal

Deputy directors, Medical Workforce Unit Dr Sarah Logan and Dr Rifca le Dieu (job-share, demitted November 2021)

Deputy medical director, invited service reviews Dr Jonathan Bennett Dr Adam De Belder (demitted August 2021)

Clinical lead for engagement – The Spine Dr Louise Bate (demitted August 2021 – role not replaced)

Garden fellow Dr Henry Oakeley

Representative on the Advisory Committee of the Chelsea Physic Garden Professor Michael de Swiet

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Officers of the Federation

Executive medical director Dr Gerrard Phillips

Medical director, training and development Dr Mike Jones

Medical director, assessment Dr Kenneth Dagg

International medical director, training and development Professor David Black

International medical director, assessment Dr Donald Farquhar

Medical director, CPD Dr Adrian Jennings

Associate medical director, written exams Professor Albert Ferro

Associate medical director, clinical exams Dr Stuart Hood Deputy medical director, JRCPTB Dr Alastair Miller

Board of Trustees

The RCP’s governing body is responsible for ensuring the RCP operates within its charitable objectives, agreeing and monitoring the RCP operational plans and ensuring the effective management and custody of all RCP assets.

Ex-officio members (senior officers)

Sir Andrew Goddard

Dr Cathryn Edwards OBE (appointed May 2021) Dr Peter Belfield (interim registrar until June 2021, following the death of Professor Donal O’Donoghue in January 2021) Professor Simon Bowman (appointed April 2022) Professor Chuka Nwokolo CBE (demitted March 2022) Dr Sarah Clarke Professor Ramesh Arasaradnam OBE (appointed August 2021) Professor Cheng-Hock Toh CBE (demitted July 2021) Professor Áine Burns

Members nominated from Council

Dr John Dean (demitted December 2021) Professor Namita Kumar Dr Iain Lawrie Dr Joanna Szram (appointed April 2021)

Lay members

Professor Charles Baden-Fuller Sarah Barzycki Andrew Chandler Professor David Croisdale-Appleby OBE Graham Meek

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Members of Council

Council develops RCP policy in relation to professional and clinical matters. Members hold voting rights. Other college officers and roles are in attendance at Council but do not hold voting rights.

President Sir Andrew Goddard

Senior censor and education and training vice president Professor Áine Burns

Clinical vice president Dr Sarah Clarke

Academic vice president Professor Ramesh Arasaradnam OBE (appointed August 2021 Professor Cheng-Hock Toh CBE (demitted July 2021)

Treasurer Professor Chuka Nwokolo CBE

Registrar Dr Cathryn Edwards OBE (appointed May 2021) Dr Peter Belfield (interim registrar until June 2021, following the death of Professor Donal O’Donoghue in January 2021)

Vice president for Wales Dr Olwen Williams OBE

Vice president – Global Dr Mumtaz Patel

Representative of the Faculty of Occupational Medicine Professor Steven Nimmo (appointed June 2021) Dr Anne de Bono (demitted May 2021)

Representative of the Faculty of Pharmaceutical Medicine Dr Flic Gabbay (appointed November 2021) Professor Tim Higenbottam (demitted November 2021)

Representative of the Faculty of Physician Associates Kate Straughton

Representative of the Faculty of Public Health Professor Maggie Rae

Representative of the Faculty of Forensic and Legal Medicine Professor Paul Marks (appointed May 2021) Dr Margaret Stark (demitted May 2021)

Representative of the Faculty of Intensive Care Medicine Dr Alison Pittard

Representative of the Royal College of Emergency Medicine Dr Katherine Henderson MBE

Representatives of the regional advisers Dr Anita Banerjee (appointed June 2021) Dr Philip Johnston (appointed January 2021) Dr Mick Kumwenda Dr Christopher Roseveare (appointed June 2021) Dr Kanwaljit Sandhu (demitted March 2021)

Elected councillors Dr Tun Aung Dr Angshu Bhowmik Dr Kaushik Chaudhuri (demitted July 2021) Dr Parijat De (demitted July 2021) Professor Rob George Dr Helena Gleeson Dr Ruth Law Dr Catherine Mummery (appointed August 2021) Dr Ananthakrishnan Raghuram MBE (appointed August 2021) Professor Tom Solomon CBE Dr Joanna Szram (demitted July 2021) Dr Mark Temple Dr Jenny Vaughan Dr Louella Vaughan (appointed August 2021) Dr Robert Wright Representatives of the censors Professor Rudolf Bilous Dr Rasha Mukhtar (appointed August 2021) Dr Celia Bielawski (demitted July 2021)

continued overleaf

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Chair of the Patient and Carer Network Eddie Kinsella

Representatives of the New Consultants Committee Dr Katie Honney Dr Kailash Krishnan (appointed December 2021) Dr Ajay Verma (demitted December 2021) Representatives of the Trainees Committee Dr Michael Fitzpatrick Dr Rachel Jones Dr Rebecca Thom (appointed April 2021) Dr Matthew Roycroft (demitted April 2021) Representative of the Staff and Associate Specialists Steering Group Dr Waleed Arshad Representatives of the specialist societies Professor Jonathan Bennett (demitted November 2021) Dr Tanya Bleiker Dr Tim Cooksley (appointed October 2021) Dr Susan Crossland (demitted October 2021) Professor David Burn (demitted May 2021) Dr Jennifer Burns Professor John Greenwood (appointed June 2021) Dr Robert Gregory Dr Iain Lawrie (demitted March 2021) Dr Alastair McKinlay Dr Sanjeev Patel Dr Amy Proffitt (appointed May 2021) Professor Simon Ray (demitted June 2021) Professor Paul Walker (appointed November 2021) Professor Thomas Warner (appointed May 2021)

Trustee councillors (in attendance) Dr John Dean Professor Namita Kumar Dr Iain Lawrie Dr Joanna Szram (appointed April 2021)

Finance boards and committees

Finance and Resources Board

Professor Simon Bowman, treasurer (from April 2022) Professor Charles Baden-Fuller Dr Kaushik Chaudhuri Steve Clarke Professor David Croisdale-Appleby OBE Dr Cathryn Edwards OBE, registrar (from May 2021) Professor Donal O’Donoghue OBE, registrar (until January 2021) Professor Rob George Sir Andrew Goddard, president Dr Wajid Hussain Professor Chuka Nwokolo CBE, treasurer (until March 2022) Roger Speddy Dr Mark Temple

Audit and Risk Committee

Dr Angshu Bhowmik Andrew Chandler Tim Golbourn Graham Meek Ray Sadler Roger Speddy

Investment Advisory Panel

Peter Allen Martin Been Professor Simon Bowman Consuelo Brooke James Hordern Adam Matthews Professor Chuka Nwokolo CBE, treasurer (until April 2022) Professor Ganesh Subramanian

Remuneration Committee

Professor Simon Bowman Andrew Chandler Graham Meek Professor Chuka Nwokolo CBE (until April 2022) Nigel Turner Professor Anthony B Ward

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Leadership team

The leadership team is responsible for the delivery of strategic and operational objectives.

Chief executive

Dr Ian Bullock

Executive director, Membership Support and

Global Engagement Matthew Foster

Executive director, Care Quality Improvement

Sue Latchem

Executive director, Education

Professor Della Freeth

Executive director, Corporate Services

Justin Smith (to January 2022)

Executive director, Communications, Policy and Research

Claire Burroughs

Commissioning director for RCP at The Spine

Clive Constable (to November 2021)

Chief operating officer – Federation

Yasmin Becker

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Summary of our income and expenditure

Income Total in 2021: £34.6 million Total in 2020: £31.0 million

Expenditure Total in 2021: £33.9 million Total in 2020: £34.3 million

Breakdown of income in £000s

Breakdown of expenditure in £000s

----- Start of picture text -----
Donations 3.6% £1,234 1.6% £555
and legacies Fundraising
7.2% £2,238 1.0% £346
Education 40.5% £14,031 Education 34.9% £11,836
and training and training
32.2% £9,978 28.4% £9,731
Membership 24.4% £8,448 Membership 11.3% £3,846
support
25.2% £7,820 11.0% £3,759
Improving and 23.4% £8,093
influencing activities Improving and 47.3% £16,048
26.2% £8,151 influencing activities
56.2% £19,273
Income from 1.2% £410
0.5% £154
investments Investment
2.1% £666 management fees
0.5% £165
Commercial meetings, 7.0% £2,432 4.3% £1,459
events and other income Commercial meetings
7.0% £2,170 and events 3.0% £1,033
----- End of picture text -----

2021

2020

Notes

Education and training includes examinations, workshops and courses

Improving and influencing activities include conferences, audit and accreditation, heritage and library services, communications, policy and research

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Our financial policies

This section should be read in conjunction with the financial statements on pages 52 to 79. An overview of the financial results is given in the financial review report on page 47.

Fundraising

The RCP is grateful for the exceptional level of support that we have received during the course of 2021 from generous donors, including members and fellows, charitable trusts and foundations, and corporate partners.

Philanthropic support and corporate sponsorship are fundamental to the work of the RCP and help us to fulfil our charitable vision of ensuring the best possible health and healthcare for everyone. The funds that we raise go directly to supporting research; education and training; clinical improvement; patient safety; and the maintenance and development of our buildings and historic collections. This report allows us to show how our charitable funds are distributed and spent. It demonstrates the benefits and impact of fundraising on supporting physicians and on improving standards of patient care.

Principal fundraising activities and performance

During 2021, we secured a total of £1.2 million in new donations with a further £0.4m pledged to fund key areas of our work (including gifts to restricted and unrestricted funds). Projects that were supported during the year included:

We erected a new donor wall in RCP at The Spine, which has been named in memory of our late registrar Professor Donal O’Donoghue. The wall is projected to raise £300k in support of our charitable mission and those who donate £800 or more are recognised on one of 300 unique voronoi polygons.

We launched a new legacy society named in honour of Ina Cooke, who worked for the RCP for over 35 years and was one of our most generous legators. During the year we secured a total of £3 million in new legacy pledges.

Fundraising programme

The RCP’s fundraising programme is carried out by a small team including specialists in trust/foundation, corporate, and major donor fundraising. The director of development reports to the CEO and works closely with the Board of Trustees.

Fundraising controls and regulation

We recognise that our fundraising success is dependent on maintaining the trust of our donors and the public. We have a number of controls in place to ensure that our fundraising remains ethical, transparent, respects vulnerable people and is compliant with current regulation. Our campaigns are run by an in-house team and we do not engage the services of commercial partners to raise funds on our behalf.

Our Board of Trustees plays an active role in our fundraising activities, reviews fundraising plans, and ensures that fundraising activity operates in line with regulatory requirements and relevant best practice.

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We have an ethical fundraising policy and carry out due diligence to ensure that we do not receive any donations that conflict with our values. All of our fundraisers receive compulsory training in this area and are members of the Chartered Institute of Fundraising, the professional membership body for UK fundraising.

The RCP is registered with the Fundraising Regulator (ref 128235) and has adopted the Code of Fundraising Practice. No complaints were received in relation to our fundraising activities during 2021 (2020: nil).

Investments

Powers and governance

The RCP’s bye-laws give the trustees powers to appoint fund managers to manage its investments.

The Investment Advisory Panel (IAP) is responsible for monitoring the performance of the investment portfolios and of the fund managers. The IAP meets with the fund managers quarterly to review their reports and progress. The IAP is chaired by the treasurer, and its membership includes fellows, independent external advisers, the executive director of Corporate Services and the director of Finance. The panel reports to the Finance and Resources Board.

Management

The majority of investments are managed by Cazenove Capital (part of Schroders plc) who have discretionary powers of investment within agreed restrictions as agreed in the Statement of Investment Principles.

The managers’ mandate is to invest, on a total returns basis, in a globally diversified portfolio of cash, equity, fixed income, convertible bonds, hedge fund securities, property funds and commodities’ funds. A relatively small investment remains with the former (pre-2011) investment managers Morgan Stanley, in the form of hedge funds that are slowly being run down, liquidated and transferred to Cazenove. One other trust fund (The Cotton Trust) remains invested (as per its terms) with RBC / Royal Trust Corporation of Canada.

During 2021, the management of the investment portfolio has been reviewed by the finance and resources board, and the trustees, and our approach has been clarified with the investment managers.

The RCP’s objective is to invest its investment assets to manage returns, with a low to moderate level of risk, with targeted returns of CPI + 3% through a diversified asset portfolio. Within this framework a number of objectives have been agreed to help guide the Finance and Resources Board in their strategic management of the RCP’s investments.

Ethical and Climate Change Investment Policy

The RCP has operated an Ethical Investment Policy in line with guidance issued by the Church of England Investment Fund. We continue to hold minimal tolerances on the proportion of indirect funds held linked to production or supply of tobacco, armaments, pornography, gambling and sale or production of alcohol.

Climate change will significantly impact public health both in the UK and around the world. All that can be done should be done to limit global temperature rises in line with the goals of the Paris Agreement on climate change. If we are to avoid the extreme impacts of climate change on both people and the environment this means a world where we limit temperature rises to 1.5 degrees above pre-industrial levels.

As a medical college the Royal College of Physicians (RCP) has a particular role to play in highlighting the health impact of climate change.

By December 2021 our fund managers reported that indirect investment in fossil fuels had reduced to zero.

Total returns policy

The RCP received a total return order from the Charity Commission, dated 6 February 2012, which enables the trustees to decide which part of the unapplied total return from the investment of the charity’s permanent endowments should be held on trust for application for the purposes of the charity.

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The policy applied in determining the initial amounts of the trusts for investments and any unapplied total return was identifying an appropriate and suitable date at which the investments (which were all invested with and managed by external fund managers) were at their lowest. This date was determined (through reference to the general stock market conditions over the period) as 30 September 1988.

The value of the investments at this date was ‘frozen’ and classified as frozen permanent capital and the remainder of the investments was classified as unapplied total return.

The amount of the unapplied total return allocated to income was the actual costs of grants, fellowships and other costs such as medals, prizes and honoraria that were awarded in the financial year, as stipulated by and within the remit of the various funds.

Policy on reserves

To deliver its business plan, the RCP has agreed a budgeting and reserves policy that enables it to make appropriate strategic allocations of funds, while also securing a sound financial base for future requirements. Services are provided with a clear understanding of whether they should be subsidised, cost neutral or delivered at a surplus. Through this policy, the RCP seeks to develop new sources of income to mitigate the risk of overreliance on major income streams. Investment decisions on the resources necessary, both to deliver new activities and to sustain continuing commitments, are based on the RCP’s overall strategic needs.

The trustees make allocations between the main activities, based on the current environment and the changing requirements of the RCP’s key activities. The Finance and Resources Board recommends an overall financial framework for the preparation of annual budgets to the trustees, taking into account the need to maintain an appropriate level of reserves.

Reserves provide an important base from which the RCP can deliver against its charitable objectives, recognising that some areas of income and expenditure can be variable and uncertain. The budgets and future plans are put in place to overcome any uncertainty over income or unexpected calls on the charity’s funds.

At 31 December 2021 total reserves of RCP were £52.7 million. The RCP holds a number of permanently endowed and restricted funds which result from bequests or donations for particular purposes, details of which are set out in notes 22 and 23 to the financial statements. At 31 December 2021 total restricted funds were £3.5 million and endowment funds were £12.9 million.

The RCP also holds reserves in the form of designated funds that are earmarked for particular purposes by the trustees. At 31 December 2021 the balance on the designated funds was £19.9 million. The main designated fund is the intangible and fixed assets fund, represented by tangible and intangible fixed assets less associated loan finance outstanding in respect of The Spine fit-out. The fund is not readily converted into cash.

The general reserves of the RCP, excluding designated funds, are represented by a mixture of external investments and net assets that include cash reserves. The minimum target free reserves level is in the range of 3–6 months of unrestricted expenditure and is set based on: the risk to income and expenditure fluctuations, unexpected needs for funds, and the need to provide working capital for the operation.

The general reserves of the RCP as at 31 December 2021 were £16.7 million, consistent with the prior year. At 31 December 2021 the defined benefit pension scheme deficit was (£0.4 million) (2020: (£4.2 million)). Free reserves net of pension scheme deficit represent 7 months of the unrestricted operational expenditure, which is beyond the target free reserves level of between 3 and 6 months (£7.2m–£14.4m). While the financial impact of COVID-19 and inflationary conditions continue to put pressure on the level of free reserves going forward, the target level is still appropriate.

Trading subsidiary

The principal activity of the company is to organise, provide facilities for and hold conferences, seminars, and courses of instruction, demonstrations, lectures, exhibitions, private dinners and functions. The accumulated net deficit for the RCP’s wholly-owned trading subsidiary, The RCP Regent’s Park Limited, for the year ended 31 December 2021 was £117k. The company is looking to recover its trading position through the provision of more virtual and hybrid events, as well as harnessing opportunities from new facilities at

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45

The Spine building. The trading results and balance sheet of the subsidiary extracted from its audited accounts are set out in note 25 to the financial statements.

Going concern

The financial statements are prepared on a going concern basis. The Board of Trustees has considered the adoption of a going concern basis in the preparation of these financial statements. A projection of the RCP’s financial position to December 2023 has been undertaken, including:

Having regard to the above, the Board of Trustees believes it appropriate to adopt the going concern basis of accounting in preparing the financial statements.

External auditor

Crowe U.K. LLP has indicated its willingness to be reappointed as statutory auditor.

Approved by the Board

The annual report has been approved by the Board of Trustees on 21 June 2022 and signed on its behalf by:

The COVID-19 pandemic had a significant impact on RCP operations in 2020 and this continued into 2021. The pandemic restrictions introduced in March 2020 resulted in two of the four main income streams for the RCP being impacted: examinations, and conference and event activity. These restrictions have eased in quarter 1 of 2022 and income levels are forecast to recover to over 90% of pre-pandemic levels. The most significant financial impact was in relation to the cancellation of face-to-face events and conferences, impacting RCP activity directly as well in the wholly owned trading subsidiary Regent’s Park Ltd.

Professor David Croisdale-Appleby Chair of Board of Trustees

Professor Simon Bowman Treasurer

For the period to December 2023 the Board of Trustees has considered the strength of operational recovery, set against inflationary pressures, risks and assumptions, together with actions including income generation and cost saving measures. Working capital requirements are met through income received from business activities and the RCP has the ability to drawdown against funds held within the investment portfolio if required. At December 2021 the RCP had adequate levels of cash and reserves and that is expected to remain the case through 2022 and into 2023.

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Financial review

During 2021 we developed our new strategy for the period 2022–24 centred around the three priority areas of educating, improving and influencing. These have always been at the heart of RCP activity and the new strategy, through engagement with our members and stakeholders, provided us with an opportunity to be clearer about these in our priorities, plans and activities. While the financial statements, as presented on pages 52 to 78, continue to report under the activities for the year ending December 2021 aligned to the previous 2015–20 strategy, all of these activities support and align to the new strategic priorities. The year 2021 marked a transition from the previous strategy to the new one, enabling us to take account of the impact of the pandemic and the opening of The Spine. The annual report for 2022 will for the first time report our activities in the financial statements under the headings of educating, improving and influencing and as part of that we will restate the 2021 figures to provide the prior year comparison.

In 2021 the RCP continued to face challenges driven by the restrictions arising from the COVID-19 pandemic. Some of the measures we put in place during 2020 have continued into 2021. As a result of these measures we have seen some recovery in our income position alongside cost reduction and control across all activities. In 2021 unrestricted income increased by 22%, with expenditure increasing slightly by 1%, resulting in a total operating surplus of £750k (2020: deficit of £3,284k).

The RCP’s risk-based investment mix and a subsequent rallying of markets in 2021 resulted in an overall gain on investments of £3,962k. This, coupled with a substantial actuarial gain on the (closed) defined benefit pension fund of £2,937k (2020: deficit of £602k), resulted in an overall net gain funds movement of £7,649k (2020: deficit of £2,426k).

Income and expenditure

The RCP’s consolidated total income in 2021 was £34.6 million (2020: £31.0 million), representing a partial recovery from the impact of COVID-19, although income was still down on pre-pandemic levels due to lockdowns in 2021 affecting RCP activities. The RCP benefited from the government’s Coronavirus Job Retention Scheme, with just over £768k claimed during

the period, representing 2% of total income. The scheme ceased in September 2021.

-----------------------------2021 -----------------------------2021 -----------------------------2021 (£000)------------------------ (£000)------------------------ 2020
(£000)
Unrestricted Restricted Endowment Total Total
Total income 28,985
5,506		 157 34,648 31,023
Total expenditure 28,704
5,100		 94 33,898 34,307
Net operating result 281
406		 63 750 (3,284)
Net (losses)/gains on
investment assets		 2,405
66		 1,491 3,962 1,460
Other net
gains/(losses)		 2,937
0		 0 2,937 (602)
Transfers 736
(705)		 (31) 0 0
Net movement in
funds for theyear		 6,359
(233)		 1,523 7,649 (2,426)

While unrestricted income increased in 2021, restricted income recorded a 29% reduction due in large part to the timing of entitlement to donations received specifically for RCP at The Spine now due to be received in 2022.

While activity increased across the RCP, expenditure decreased by 1% to £33.9 million. This was partly due to continued cost control coupled with an approach to funding the lease obligations for the London estate from reserves. The executive team worked hard to mitigate the financial position, including deferring investments in the London estate and IT systems development, and cutting non-essential costs while preserving our core capabilities, key NHS services and support for members tackling the pandemic.

Construction and fit-out of The Spine was completed in May 2021. As part of Liverpool’s Knowledge Quarter, The Spine will be a centre of excellence and innovation to engage members, fellows and partner organisations in the north and enhance RCP activities. It is applying for certification to the Platinum WELL Standard, which will make it one of the healthiest buildings in

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the UK. The Spine was phased into operation during 2021, including use of our purpose-built assessment facilities with physician associate exams held from May 2021.

The RCP continues to run a Group Personal Pension Plan (GPPP) scheme for new staff joiners and maintains the RCP single employer trust-based defined contribution pension scheme which was closed to new entrants from the start of 2018 but continues to run for existing staff members.

Investments

As at 31 December 2021 our investments, including cash deposits, stood at £36.5 million. World markets rallied in 2021, with conditions remaining supportive for risk assets despite periods of volatility.

The objectives of our investment strategy are to achieve long-term growth at 3% ahead of CPI inflation, at an acceptable level of risk, applying a total return strategy. Our investments are now mainly held by fund managers Cazenove, with small holdings still with Morgan Stanley and Canada Trust Corp. The investment skills of Cazenove, together with our knowledgeable Investment Advisory Panel enable us, on average, to achieve target performance with downside protection. We are continuing to evolve our ethical investment stance, which is aligned to the RCP’s charitable objectives to improve health and prevent health harms. The process of removing any residual fossil fuel assets in the RCP’s portfolio is complete.

Pensions

As at the end of 2021, the deficit of the defined benefit pension scheme, which has been closed to new members since 2002 and to further accrual from 2008, decreased significantly from a deficit of £4.239 million to a deficit of £0.386 million on an FRS 102 basis. This significant reduction in liability has been caused by a combination of market movements, which has led to a lower value being placed on the liabilities, as well as experience items such as lower actual inflation and membership movements, which have resulted from updating the underlying data to that used for the actuarial valuation at 1 January 2021. Assets have also performed better over the period contributing further to the reduction.

The triennial actuarial valuation of the defined benefit pension scheme, dated 1 January 2021, was concluded at the end of March 2022. This showed an increase in the deficit, driven by a combination of assumption changes as well as recognition of changes to the benefit structure that value the liabilities at a greater level.

Balance sheet and reserves

At the end of the year the RCP held net assets of £52.7 million of which £36.5 million is the market value of our investment portfolio and £12.5 million is in cash. Endowment and restricted funds comprise £16.4 million, therefore unrestricted funds comprise £36.3 million, of which free reserves (net of the designated funds but gross of the long-term defined benefit pension deficit) have remained consistent with 2020 at £16.7 million. Heritage assets (rare books, manuscripts, paintings, silverware), originally gifts to the college over the past 5 centuries, are not valued at all in the financial balance sheet, but have an insurance value of ~£41 million.

Future financial plans

The trustees and I remain vigilant in seeking to protect the RCP and support its members and to use the resources available to fulfil the RCP’s objectives and promote its work as efficiently as possible. Our reserves policy is to maintain the level of general reserves at between 3 and 6 months of unrestricted operational expenditure.

While the RCP’s balance sheet position remains strong, the COVID-19 pandemic and subsequent inflationary pressures continue to have an adverse impact on core activities in 2022. The focus will be on keeping expenditure down while continuing to carry out key activities.

With thanks

I took over from Professor Chuka Nwokolo as RCP treasurer in April 2022, having previously been deputy treasurer. I would like to thank Chuka for his dedicated work over many years and for his steady hand guiding the RCP’s finances during some incredibly turbulent times.

Professor Simon Bowman, treasurer

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Independent auditor’s report to the trustees of the RCP

Opinion

We have audited the financial statements of the Royal College of Physicians for the year ended 31 December 2021 which comprise the consolidated statement of financial activities, the parent and consolidated balance sheets, the consolidated cash flow statements and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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’ below. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee’s 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 the charitable company’s ability to continue as a going concern for a period of at least 12 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 trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 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.

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Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 31, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial

statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with compliance with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate

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or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context were General Data Protection Regulation (GDPR), employment legislations and taxation legislations.

Auditing standards limit the required audit procedures to identify noncompliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the trustees about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, review of internal audit reports conducted in the period and reading minutes of meetings of those charged with governance.

undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP

Statutory auditor London

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 154 of the Charities Act 2011. Our audit work has been

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51

Financial statements

Consolidated statement of financial activities for the year ended 31 December 2021

Notes Unrestricted
funds		 Restricted
funds		 Endowment
funds		 Total funds Total funds
31 Dec 21 31 Dec 20
£000 £000 £000 £000 £000
Income from:
Fundraising
2		 481 753 - 1,234 2,238
Charitable activities
Care Quality Improvement
3		 2,863 4,233 - 7,096 7,377
Education and Federation
4		 13,609 417 - 14,026 9,978
Membership Support and Global Engagement
5		 8,448 - - 8,448 7,820
Communications, Policy and Research
6		 34 88 - 122 130
Heritage and investing in our future
7		 81 - - 81 71
Meetings and events (medical) 791 - - 791 573
Activities to generate funds
Investment income
8		 253 8 157 418 666
Meetings and events (non-medical) – trading
25		 1,448 - - 1,448 928
COVID-19 Job Retention Scheme 761 7 - 768 1,094
Other income 216 - - 216 148
Total income 28,985 5,506 157 34,648 31,023
Expenditure on:
Raising funds
Fundraising costs 411 94 - 505 346
Investment management fees 95 2 57 154 165
Meetings and events (non-medical)
25		 1,459 - - 1,459 1,033
1,965 96 57 2,118 1,544
Charitable activities
Care Quality Improvement
9		 4,124 4,486 - 8,610 8,867
Education and Federation
10		 11,456 380 - 11,836 9,731
Membership Support and Global Engagement
11		 3,806 40 - 3,846 3,759

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52

Notes Unrestricted
funds		 Restricted
funds
Endowment
funds		 Total funds
31 Dec 21
31 Dec 20
Communications, Policy and Research
12		 2,820 96
-		 2,916
3,286
Heritage and investing in our future
13		 1,053 -
-		 1,053
2,701
Meetings and events (medical) 3,480 -
-		 3,480
4,350
Trusts and fellowships - 2
37		 39
69
Total expenditure
14/15		 28,704 5,100
94		 33,898
34,307
Net operating (loss)/gain 281 406
63		 750
(3,284)
Net gains on investment assets
17		 2,405 66
1,491		 3,962
1,460
Net income/(expenditure) 2,686 472
1,554		 4,712
(1,824)
Transfers between funds
21/22		 736 (705)
(31)		 -
-
Actuarial gains/(losses) on defined benefit pension scheme
26		 2,937 -
-		 2,937
(602)
Net movement in funds for theyear 6,359 (233)
1,523		 7,649
(2,426)
Funds brought forward at 1 Jan 2021
21/22/23		 29,916 3,710
11,420		 45,046
47,472
Funds carried forward at 31 December 2021 36,275 3,477
12,943		 52,695
45,046

RCP annual report 2021

53

Consolidated and RCP balance sheets as at 31 December 2021

2021
2020
Notes Group RCP
Group
RCP
£000 £000
£000
£000
Fixed assets
Intangible assets 16a 1,170 1,170
1,417
1,417
Tangible fixed assets 16b 26,004 26,004
23,324
23,324
Investments 17 36,470 36,470
32,932
32,932
63,644 63,644
57,673
57,673
Current assets
Stocks 108 108
114
114
Debtors 18 3,815 4,014
6,102
6,287
Investment accounts 7 1
309
303
Cash 12,534 12,277
10,981
10,845
16,464 16,400
17,506
17,549
Creditors
Amounts falling due within 1year
Creditors and accrued expenses 19 (16,299) (16,118)
(17,808)
(17,745)
Examination and other income
received in advance 19 (7,416) (7,416)
(7,226)
(7,226)
Provisions 19b (43) (43)
(127)
(127)
(23,758) (23,577)
(17,661)
(17,598)
Amounts falling due after 1year 19 (3,269) (3,269)
(733)
(733)
Net liabilities (10,563) (10,446)
(8,388)
(8,282)
Net assets excluding pension liability 53,081 53,198
49,285
49,391
Defined benefitpension scheme liability 26 (386) (386)
(4,239)
(4,239)
Net assets including pension liability 24 52,695 52,812
45,046
45,152
Represented by
Unrestricted funds:
Designated funds 21
Fixed and Intangible Assets Fund 19,673 19,673
17,241
17,241
Legacies Development Fund 147 147
147
147

RCP annual report 2021

54

2021
2020
Notes
Group
RCP
Group
RCP
CareQualityImprovement
105
105
105
105
~~eee~~
~~eee~~		 2021
2020
Notes
Group
RCP
Group
RCP
CareQualityImprovement
105
105
105
105
~~eee~~
~~eee~~		 2021
2020
Notes
Group
RCP
Group
RCP
CareQualityImprovement
105
105
105
105
~~eee~~
~~eee~~		 2021
2020
Notes
Group
RCP
Group
RCP
CareQualityImprovement
105
105
105
105
~~eee~~
~~eee~~		 2021
2020
Notes
Group
RCP
Group
RCP
CareQualityImprovement
105
105
105
105
~~eee~~
~~eee~~		 2021
2020
Notes
Group
RCP
Group
RCP
CareQualityImprovement
105
105
105
105
~~eee~~
~~eee~~		 2021
2020
Notes
Group
RCP
Group
RCP
CareQualityImprovement
105
105
105
105
~~eee~~
~~eee~~
19,925 925
19,925		 17,493 17,493
General charitable fund 16,736 736
16,853		 16,662 16,768
Less: Pension scheme liabilities 26 (386) (386) (4,239) (4,239)
16,350 350
16,467		 12,423 12,529
Total unrestricted 36,275 275
36,392		 29,916 30,022
Restricted 22 3,477 477
3,477		 3,710 3,710
Endowment 23 12,943 943
12,943		 11,420 11,420
52,695 695
52,812		 45,046 45,152

The results of the parent charity for the year ended 31 December 2021 was a £7,649k surplus (2020: deficit £2,426k).

Approved for and on behalf of the RCP (Charity Registration No. 210508) on 21 June 2022 and authorised for issue.

President: Sir Andrew Goddard

Treasurer: Professor Simon Bowman

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55

Consolidated statement of cash flow for the year ended 31 December 2021

2021
£000		 2020
£000
Cash flow from operating activities
Net cashprovided by / (used in) operating activities
A		 5,437 (3,327)
Dividends,interest and rents from investments 410 666
Purchase ofproperty, plant and equipment (4,589) (11,669)
Purchase of intangible assets (254) (296)
Proceeds from sale of investments 567 19,775
Purchase of investments (141) (3,053)
Net cashprovided by (used in) investing activities (4,007) 5,423
Proceeds from borrowings* - 7,500
Borrowings interest andprincipal repayments* (63) (58)
Finance leasepayments (116) (22)
Net cashprovided by (used in) financing activities (179) 7,420
Change in cash and cash equivalents in the reporting period 1,251 9,516
Cash and cash equivalents at the beginningof the reporting period
B		 11,290 1,774
Cash and cash equivalents at the end of the reporting period
B		 12,541 11,290

Notes to consolidated statement of cash flow for the year ended 31 December 2021

2021
£000		 2020
£000
A. Reconciliation of net income/(expenditure) to net cash flow from operating activities
Net movement in funds for the reporting period(asper the statement of financial activities) 4,712 (1,823)
Adjustments for:
Depreciation charges 1,909 1,472
Amortisation charges 501 897
Loss/(gains)on investments (3,963) (1,460)
Increase/(decrease)inprovisions (84) 127
Dividends,interest and rents from investments (410) (666)
(Gain)on valuation of defined benefitpension scheme (916) (606)
(Increase)/decrease in stocks 6 64

RCP annual report 2021

56

2021
£000
2020
£000
(Increase)/decrease in debtors 2,288
(1,855)
Increase/(decrease)in creditors 1,394
523
Net cashprovided by/(used in) operating activities 5,437
(3,327)
B. Analysis of cash and cash equivalents
Cash in hand 12,534
10,981
Notice deposits and investment accounts(less than 30 days) 7
309
Total cash and cash equivalents 12,541
11,290
Analysis of changes in net debt Analysis of changes in net debt
At 1 Jan 2021 Cash flow New finance
leases

Acquired debt		 Interest and non-
utilisation charges		 At 31 Dec 2021
£000 £000 £000
£000		 £000 £000
Cash and cash equivalents
Cash in hand 10,981 1,553 -
-		 - 12,534
Notice deposits
30 days)		 and investment accounts (less than
309		 (302) -
-		 - 7
Total cash and cash equivalents 11,290 1,251 -
-		 - 12,541
**Borrowings **
Revolvingcredit facility* (7,500) 63 -
-		 (63) (7,500)
Finance lease obligations (351) 116 (500) - (13) (748)
**Total borrowings ** (7,851) 179 (500) - (76) (8,248)
Total net debt 3,439 1,430 (500) - (76) 4,293

*During 2020 the organisation utilised £7.5m of a £10m revolving credit facility with Santander to fund the RCP at The Spine development.

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57

Notes to the financial statements for the year ended 31 December 2021

1 Accounting policies

Charity information

The Royal College of Physicians (RCP) was established by royal charter in 1518. It is a registered with the Charity Commission for England and Wales and is a Royal Charter company registered with Company House. The charity registration number is 210508 and the company registration number is RC000899. RCP is a Public Benefit Entity and its registered office is 11 St Andrews Place, London NW1 4LE.

Basis of preparation

The consolidated financial statements comprise the financial statements of RCP, and its subsidiary undertaking, The RCP Regent’s Park Limited, on a lineby-line basis and adjusted for the elimination of inter-group transactions and balances.

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

The RCP constitutes a public benefit entity as defined by FRS 102.

The financial statements are drawn up on the historical accounting basis, except that investments held as fixed assets are carried at market value.

preparation of these financial statements. A projection of the RCP’s financial position to December 2023 has been undertaken, including:

The COVID-19 pandemic had a significant impact on the RCP’s operations in 2020 and this continued into 2021. The pandemic restrictions introduced in March 2020 resulted in two of the four main income streams for the RCP being impacted: examinations, and conference and event activity. These restrictions have eased in quarter 1 of 2022 and income levels are forecast to recover to over 90% of pre-pandemic levels. The most significant financial impact was in relation to the cancellation of face-to-face events and conferences, impacting RCP activity directly as well the wholly owned trading subsidiary Regent’s Park Ltd.

For the period to December 2023 the Board of Trustees has considered the strength of operational recovery, set against inflationary pressures, risks and assumptions, together with actions including income generation and cost saving measures. Working capital requirements are met through income received from business activities and the RCP has the ability to drawdown against funds held within the investment portfolio if required. At December 2021 the RCP had adequate levels of cash and reserves and that is expected to remain the case through 2022 and into 2023.

Having regard to the above the Board of Trustees believes it appropriate to adopt the going concern basis of accounting in preparing the financial statements.

Income

Going concern

The financial statements are prepared on a going concern basis. The Board of Trustees has considered the adoption of a going concern basis in the

Subscriptions income, admission fees, grants and donations are accounted for once there is entitlement, probability of receipt and can be reliably measured. Legacies are accounted for where there is entitlement, probability

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58

Notes to the financial statements continued

of receipt and amounts can be measured. For residuary legacies, entitlement is deemed to be the earlier of settled estate accounts or notification of a pending payment or actual payment being received. For pecuniary legacies these are recognised on confirmation that probate has been obtained. Investment income is recognised when due except for dividends which are accounted for on receipt. Income is deferred only when conditions have to be fulfilled before the RCP becomes entitled to it or where the donor has specified that the income is to be expended in the future period. In the case of examination admissions any receipt in respect of future years is shown as deferred income. Membership fee is seen as an annual subscription and therefore income is not deferred. Government grants are recognised as income when any specific conditions are met.

Expenditure

All expenditure is accounted for under the accruals concept and stated gross of irrecoverable VAT. All costs are allocated to the charitable cost centres on an actual basis, with the exception of administration costs which are allocated on the following basis:

Salaries are allocated according to the nature of work performed by each member of staff.

Governance costs comprise the costs incurred, which are directly

attributable to the management of the charity’s assets, organisational procedures and the necessary legal procedures for compliance with statutory requirements.

Rentals for leased assets held under the terms of operating leases are charged directly to the statement of financial activities (SOFA) over the term of the lease.

Tangible and intangible fixed assets

No 11 St Andrews Place, a leasehold property held under a 99-year lease expiring in 2060 and Nos 1–10 St Andrews Place, leasehold properties held under a lease that expires in 2084, are being depreciated over the life of the lease from the commencement of the respective leases. The cost of additions to existing structures has been depreciated, concurrently, over the remaining life of the leases. Equipment, intangible assets, furniture and fixtures are capitalised when the cost of the project exceeds £15,000 and has a useful life spread over a number of financial years. These capital costs are depreciated and intangible assets amortised by equal instalments over their anticipated useful lives, at rates between 5% and 25%. No depreciation or amortisation is charged on assets in the course of construction. At each reporting date the RCP assesses if there is any indication of impairment of its estate and other fixed assets.

Collections

In addition to the capitalised fixed assets held for the RCP’s own use, the RCP also has a number of assets of historical interest. These comprise learned publications and a unique collection of busts and portraits, together with other objects, whose intrinsic value is also bound up with the RCP’s history. The trustees consider that the significant administrative expenses incurred in deriving a reliable cost for the capitalisation of these items would exceed the usefulness of such information to the user of the financial statements. On this basis these assets are not capitalised in the accounts.

Finance leases

Finance leases are recognised where the risks and rewards of ownership of the leased asset are held by the lessee (The RCP). These are recongised as a right-to-use fixed assets with a corresponding lease liability comprised of the present value of the minimum lease payments, derived by discounting them at the interest rate implicit in the lease. Right-to-use assets are depreciated over the lease period or asset life, where the asset is retained at the end of lease and has an asset life longer that the lease term.

RCP annual report 2021

59

Notes to the financial statements continued

Investments

Investments are stated in the balance sheet at the mid-market value at the balance sheet date. Realised gains or losses are calculated by reference to disposal proceeds and either opening market value or cost if acquired during the year.

Taxation

The RCP is eligible for the tax exemptions available for charitable activities.

Unrestricted funds

These funds are received and applied to achieve the general objectives of the RCP.

Stock

Stock is valued at the lower of cost and net realisable value.

Cash and cash equivalents

Cash and cash equivalents includes cash at bank and in hand, cash held for reinvestment and short-term deposits.

Pensions

The RCP has three pension schemes, one providing defined benefits based on final salary, the other two providing benefits based on defined contributions invested with Standard Life. The pension costs for the defined contribution scheme are charged to the statement of financial activities as they become payable in accordance with FRS 102. The pension costs relating to the defined benefit scheme are assessed in accordance with the advice of an independent qualified actuary.

The defined benefit pension scheme current service costs and the net of the scheme interest cost and the expected return on the scheme assets for the year are charged to the statement of financial activities within superannuation costs. Actuarial gains and losses are recognised within other recognised gains and losses.

The defined benefit pension scheme assets are measured at fair value at the balance sheet date. Scheme liabilities are measured on an actuarial basis at the balance sheet date using the projected unit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent term to the scheme liabilities. The resulting defined benefit asset or liability is presented separately after other net assets on the face of the balance sheet.

Designated funds

Designated funds are unrestricted funds set aside by the trustees for specific future purposes or projects. The movements on these funds are analysed in note 21.

Restricted funds

Restricted funds are subject to specific conditions laid down by the donors as to how they may be used. Note 22 gives details of these funds.

Endowment funds

Endowment funds relate to bequests and gifts to the RCP, the terms of which stipulate that the capital may not be spent, and the income is to be utilised to meet the costs of awards, lectures and other RCP expenditure. Movements in these funds are shown in note 23.

Total return accounting

The trustees of the RCP applied to the Charity Commission in January 2012 for authorisation to enable the permanent endowments within the RCP trust funds to be invested on a total return basis as this would facilitate a better return on investments, without prejudicing the investment management policy.

Upon receiving the requisite order from the Charity Commission on 6 February 2012 the RCP trust fund committee approved the base date for the commencement of the total return investment policy to be 30 September 1988. The permanent endowments in note 23 of the financial statements have been recalculated as at the above date.

RCP annual report 2021

60

Notes to the financial statements continued

Critical accounting judgements and key sources of estimation

uncertainty

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described in the accounting policies and are summarised below:

Pension liabilities – the charity recognises its liability to its defined benefit pension scheme which involves a number of estimations as disclosed in note 26.

Financial instruments

Financial assets and financial liabilities are recognised when the RCP becomes a party to the contractual provisions of the instrument. Additionally

all financial assets and liabilities are classified according to the substance of the contractual arrangements entered into. Financial assets and liabilities are initially measured at transaction price (including transaction costs) and are subsequently re-measured where applicable at amortised cost. Financial assets held at amortised cost comprise cash at bank and in hand, short-term investments together with accrued interest and other debtors. Financial liabilities held at amortised costs comprise other creditors and accruals.

Operating leases

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.

RCP annual report 2021

61

Notes to the financial statements continued

Incoming resources

Unrestricted
Restricted/
endowment
2021
£000
£000
£000		 Unrestricted
Restricted/
endowment
2021
£000
£000
£000		 2020
£000
2
Fundraising
Donations 426
156
582		 419
Legacies 55
-
55		 670
Libraryand museum -
-
-		 3
RCP North -
580
580		 1,051
RCP CQID -
-
-		 15
Physicians’ fund -
17
17		 80
481
753
1,234		 2,238
3
CareQuality Improvement
National Guideline Centre 50
2,544
2,594		 2,832
Core and Audit and Accreditation 2,472
1,689
4,161		 4,305
Invited Service Reviews 341
-
341		 240
2,863
4,233
7,096		 7,377
4
Education and Federation
Education and conferences 2,786
417
3,203		 1,818
Continuing professional development 183
-
183		 15
MRCP(UK)examinations 8,917
-
8,917		 6,413
Physicians TrainingBoard 1,723
-
1,723		 1,732
13,609
417
14,026		 9,978
5
Membership Support and Global Engagement
Membership
8,167
-
8,167		 7,609
UK regional offices
183
-
183		 124
International
88
-
88		 81
Medical Workforce Unit
10
-
10		 6
8,448
-
8,448		 7,820
6
Communications, Policy and Research
Publications
32
-
32		 30
External communications
2
88
90		 100
34
88
122		 130
7
Heritage and investing in our future
Libraryand museum services
81
-
81		 71

RCP annual report 2021

62

Notes to the financial statements continued

Unrestricted
Restricted/
endowment
2021		 Unrestricted
Restricted/
endowment
2021		 Unrestricted
Restricted/
endowment
2021		 2020
81
-
81		 71
8
Investment income
Dividends
37
43
80		 263
Interest on investments
216
122
338		 403
253
165
418		 666

RCP annual report 2021

63

Notes to the financial statements continued

Resources expended

Unrestricted
Restricted/endowment
2021
2020
£000
£000
£000
£000
9
CareQuality Improvement
National Guideline Centre 307
2,579
2,886
2,932
Core and Audit and Accreditation 3,379
1,907
5,286
5,518
Invited Service Reviews 438
-
438
417
4,124
4,486
8,610
8,867
10
Education and Federation
Education and conferences 6,288
380
6,668
4,693
Continuing professional development 109
-
109
118
MRCP(UK)examinations 4,178
-
4,178
4,084
Physicians TrainingBoard 881
-
881
836
11,456
380
11,836
9,731
11
Membership Support and Global Engagement
Membership 1,920
-
1,920
1,803
UK regional offices 1,087
-
1,087
1,000
International 453
40
493
653
Medical Workforce Unit 346
-
346
303
3,806
40
3,846
3,759
12
Communications, Policy and Research
Professional affairs 389
-
389
468
Committees 622
-
622
402
Publications 506
-
506
864
External communications 1,303
96
1,399
1,552
2,820
96
2,916
3,286
13
Heritage and investing in our future
Libraryand museum services 751
-
751
1,431
RCP North 302
-
302
1,270
1,053
-
1,053
2,701

RCP annual report 2021

64

Notes to the financial statements continued

14
Expenditure on		 Direct
costs
Staff
costs		 Other
support costs		 Total
2021		 Total
2020
£000
£000		 £000 £000 £000
Raising funds
Fundraisingcosts 116
244		 145 505 346
Investment management fees 154
-		 - 154 165
Meetings and events(non-medical) 664
-		 795 1,459 1,033
Charitable expenditure
Care QualityImprovement 1,968
3,990		 2,652 8,610 8,867
Education and Federation 4,141
4,086		 3,609 11,836 9,731
MembershipSupport and Global Engagement 401
1,330		 2,115 3,846 3,759
Communications,Policyand Research 588
1,698		 630 2,916 3,286
Heritage and investingin our future 70
525		 458 1,053 2,701
Meetings and events(medical) 1,354
1,065		 1,061 3,480 4,350
Trusts and fellowships 36
-		 3 39 69
Total for 2021 9,492
12,938		 11,468 33,898 34,307
Total for 2020 10,557
13,969		 9,761 34,307
2021 2020
The analysis of other support costs is as follows: £000 £000
Administrative overheads 2,503 2,635
Information technologycosts 2,921 2,673
Buildingoverheads 3,403 2,055
Travel,meetings,subscriptions andjournals 189 26
Governance costs* 110 127
Other costs,includingstaff costs of central services 2,342 2,245
11,468 9,761

*Governance costs include fees payable to the auditors from audit fees of £46.9k (2020: £45.6k) and non-audit services of £2.8k (2020: £3k).

RCP annual report 2021

65

Notes to the financial statements continued

15
Employees and trustees		 2021 2020
The total costs of salaries and wages were as follows: £000 £000
Salaries and wages 14,719 15,227
Social securitycosts 1,506 1,575
Pension costs 1,323 1,407
17,548 18,209
2021 2020
The average number of employees in theyear was: 403 413
The number of employees whose emoluments exceeded £60,000 were:
£60,001–£70,000 13 14
£70,001–£80,000 7 9
£80,001–£90,000 3 3
£90,001–£100,000 4 5
£100,001–£110,000 3 1
£110,001–£120,000 - 1
£120,001–£130,000 - -
£130,001–£140,000 - -
£140,001–£150,000 1 1
2021 2020
15a
Keymanagementpersonnel		 £000 £000
Total employee benefitspaid to keymanagementpersonnel(Including pension contributions) 1,205 1,161
15b
Terminationpayments		 2021 2020
No ofpayments 18 13
Value ofpayments(£000) 198 103
15c
Payments to trustees**		 2021 2020
No of payments made to trustees, this includes payments to officers supporting their defined roles as senior
officers as well as their trustee roles. No other remuneration was paid to trustees from the RCP in the current or
preceding years.		 6 7
Value ofpayments(£000) 10 8

*As at year-end £28k remained outstanding for termination payments.

**Trustees are not remunerated and this is a reimbursement of costs.

RCP annual report 2021

66

Notes to the financial statements continued

16a Intangible IT assets (Group and RCP) Intangible IT assets in use
Intangible IT assets under
construction
Total
2021
£000 £000
£000
Cost at 1 January 2021 4,689 363
5,052
Additions 80 174
254
Transfers/adjustments 124 (124)
-
Cost at 31 December 2021 4,893 413
5,306
Accumulated amortisation at 1 January 2021 (3,635) -
(3,635)
Amortisation for theyear (501) -
(501)
Accumulated amortisation at 31 December 2021 (4,136) -
(4,136)
Net book value at 31 December 2021 757 413
1,170
Net book value at 31 December 2020 1,054 363
1,417
16b Tangible assets (Group and RCP) Leasehold
Furniture and fixtures
IT & AV tangible assets
Assets under construction		 Total
properties 2021
£000
£000
£000
£000		 £000
Cost at 1 January 2021 22,880
1,261
2,825
12,312		 39,278
Additions 671
-
213
3,705		 4,589
Transfers/adjustments* 12,543
1,440
1,967
(15,950)		 -
Cost at 31 December 2021 36,094
2,701
5,005
67		 43,867
Accumulated depreciation at 1 January 2021 (13,542) (610) (1,802) - (15,954)
Depreciation for theyear (1,275) (176) (458) - (1,909)
Disposals -
-
-
-		 -
Accumulated depreciation at 31 December 2021
(14,817)		 (786) (2,260) - (17,863)
Net book value at 31 December 2021 21,277
1,915
2,745
67		 26,004
Net book value at 31 December 2020 9,338
651
1,023
12,312		 23,324

*The majority of the transfer balance in year relates to accounting for use of fit-out at The Spine.

RCP annual report 2021

67

Notes to the financial statements continued

|17 Investments (Group and RCP)||-------------------Unrestricted----------------------||||Total| |---|---|---|---|---| ||Designated for leasehold
General|Restricted|Endowment
2021|2020| ||£000
£000|£000|£000
£000|£000| |Market value at 1 January 2021|72
20,867|1,888|10,105
32,932|48,194| |Additions at cost|18
123|-|-
141|3,053| |Disposals|(18)
(192)|(322)|(34)
(566)|(19,775)| |(Loss)/gains|(20)
2,426|66|1,491
3,963|1,460| |Total investments at 31 December 2021|52
23,224|1,632|11,562
36,470|32,932| |Historical cost as at 31 December 2021|-
17,629|462|10,288
28,379|34,597| |||||| |The above investments are held as follows:|||2021|2020| ||||£000|£000| |Equities|||24,196|18,462| |Bonds|||2,911|2,914| |Multi-asset funds|||1,778|3,064| |Alternatives|||4,923|4,722| |Cash|||2,662|3,770|

18
Debtors (Group and RCP)		 2021 2020
Group RCP Group RCP
£000 £000 £000 £000
Current
Trade debtors 1,303 1,103 1,179 1,089
Other debtors 53 53 998 998
Prepayments 927 927 524 524
Accrued income 1,532 1,532 3,401 3,401
Non-current
Loans due from subsidiary - 399 - 275
Total 3,815 4,014 6,102 6,287

RCP annual report 2021

68

Notes to the financial statements continued

19 Creditors and accrued expenses (Group and RCP)
2021
2020
Group
RCP
Group
RCP
£000
£000
£000
£000
Current
Trade creditors
945
765
912
871
Other creditors
3,163
2,378
3,089
2,859
Tax and social securitycreditors
562
562
421
421
Accruals
3,959
3,952
5,809
5,803
Revolvingcredit facility
7,500
7,500
7,500
7,500
Amount due to subsidiaryundertaking
-
791
-
214
Obligations under finance lease
170
170
77
77
Total
16,299
16,118
17,808
17,745
Examination and other income received in advance
(Group and RCP)
Balance b/f
1 Jan 21
Released to
SOFA
Received in year
Balance
c/f
31 Dec 21
£000
£000
£000
£000
Examination income
4,523
4,523
5,380
5,380
Other income
2,703
2,703
2,036
2,036
Total
7,226
7,226
7,416
7,416
Non-current
Group
RCP
Group
RCP
£000
£000
£000
£000
Accruals
2,690
2,690
459
459
Obligations under finance lease
579
579
274
274
Total
3,269
3,269
733
733

RCP annual report 2021

69

Notes to the financial statements continued

19b Provisions for liabilities (Group) Other
£000		 2021
total		 2020
total
Provisions at 1 January 127 127 -
Additionalprovisions made in theyear - - 127
Provisions released fromprioryears (84) (84) -
Provision for liabilities at 31 December 43 43 127
20 Financial assets and liabilities 2021
2020
£000
£000
Financial assets held at fair value 36,470
32,932
Gains/(losses)on assets held at fair value 3,962
1,460
21 Unrestricted funds
Balance as at
01/01/2021		 Income Expenditure Gains/losses Transfers
Balance as at
31/12/2021
£000 £000 £000 £000 £000
£000
Unrestrictedgeneral 12,423 28,985 (28,704) 5,342 (1,696) 16,350
Unrestricted designated
Fixed and Intangible Assets Fund
17,241		 - - - 2,432
19,673
Legacies Development Fund 147 - - - 147
Care QualityImprovement 105 - - - 105
Total 29,916 28,985 (28,704) 5,342 736
36,275

Fixed and Intangible Assets Fund – this represents the amounts set aside from the general fund to fund the net book value of the RCP’s fixed and intangible assets.

Legacies Development Fund – the fund will be utilised for appropriate and relevant projects for such purposes that the major donors can be recognised and remembered. Care Quality Improvement – funds remaining on completed projects have been designated with the aim of expanding the work carried out by this directorate.

RCP annual report 2021

70

Notes to the financial statements continued

22 Restricted funds Balance at Income Expenses
Gains		 Transfers Balance at
01/01/2021 31/12/2021
£000 £000 £000
£000		 £000 £000
CareQualityImprovement 794 1,689 (1,874) - - 609
National Guideline Centre 119 2,544 (2,579) - - 84
Education 700 422 (380) - - 742
MembershipSupport and Global Engagement 164 1 -
-		 (157) 8
Drabu MTI Programme 43 - -
-		 2 45
Eric Watts donation 67 - (33) - - 34
RCP North 0 580 -
-		 (580) -
Physicians’ Fund 200 17 (49) - - 168
DorothyWhitneyWood – Physicians’ Fund 518 - (25) - - 493
COVID-19 appeal 38 64 (21) - - 81
External communications 88 88 (79) - - 97
Dr Everley-Jones legacy 102 1 -
-		 - 103
Harold Thomas Barten Trust 109 1 (1) 14 - 123
Frank Peacock Bequest 67 1 -
9		 - 77
Catherine Mills Bequest 73 1 -
10		 - 84
Queenie Louisa Higgins Bequest 48 1 -
6		 - 55
Thomas Cotton Trust 73 - -
-		 4 77
The Saltwell Will Trust Research Branch 138 - -
-		 16 154
17 other funds balances below £40,000 369 96 (59) 27 10 443
Total 3,710 5,506 (5,100) 66 (705) 3,477

Funds with closing balances over £100k are as follows:

The grants for Care Quality Improvement and Education are received in respect of specific projects.

The Physicians’ Fund awards grants to trainees and new consultants pursuing innovation in medicine. The grants enable recipients to take up to 12 months out of clinical practice to undertake research in a UK institution and are funded by donors to the RCP.

The Dorothy Whitney Wood Physicians’ Fund relates to a legacy received in 2020 to establish the Whitney-Wood Scholarship to be awarded for the purposes of research in the field of medicine preferably concerned with the understanding and management of cancer.

The Dr Everley-Jones legacy was received from the estate of Dr Everley-Jones, to be used in the field of communication in medicine in its broadest sense, encompassing all aspects of information technology.

The Harold Thomas Barten Trust is to be used for the purpose of scientific study of the human brain and mental disorder.

RCP annual report 2021

71

Notes to the financial statements continued

23 Endowment funds
Unapplied
total return
01/01/2021
Income
Gains
Conversion
to income
Transfers		 Unapplied total
return
‘Frozen’
permanent
capital
Total
endowment
31/12/2021
31/12/2021
31/12/2021
£000
£000
£000
£000
£000		 £000
£000
£000
Bradshaw Trust
185
4
42
(3)
-		 228
143
371
Eden Fellowshipin Paediatrics
1,145
17
166
(6)
-		 1,322
142
1,464
John Rosser Scholarship
31
1
9
-
-		 41
42
83
Joseph Senior White Trust
109
4
35
(1)
-		 147
161
308
Lewis Thomas Gibbon Jenkins-Briton Ferry
1,363
35
338
(20)
-		 1,716
1,250
2,966
ORL Wilson Bequest
110
3
20
(1)
-		 132
44
176
James Maxwell Grant Prophit Bequest
465
13
130
(20)
-		 588
539
1,127
Sadleir Trust
373
6
60
(3)
-		 436
91
527
Samuel Leonard Simpson Fellowship
643
12
119
(5)
-		 769
280
1,049
T K Stubbins bequest
29
2
17
(14)
-		 34
104
138
Watson Smith Trust
555
14
133
(5)
-		 697
470
1,167
William WitheringPrize
140
2
23
(1)
-		 164
38
202
Dr J D RamsayScholarship
48
1
10
-
-		 59
30
89
Graham Bull Prize
52
1
10
-
-		 63
25
88
Sir Michael Perrin Lecture
79
1
12
-
-		 92
12
104
LadyTeale Lecture
100
2
19
(1)
-		 120
44
164
John Glyn
101
2
23
(1)
-		 125
80
205
Dame Sheila Kift Bequest
36
1
10
-
-		 47
38
85
John Thornton Ingram Lecture
31
-
5
-
-		 36
6
42
Lockyer Lectureshipand Fellowship
27
1
5
-
-		 33
12
45
Simms Bequest
22
1
5
-
-		 28
16
44
Professor PF Thomas Bequest
26
1
7
-
-		 34
25
59
10 other funds with balances below £40,000
62
1
14
(2)
-		 75
50
125
Subtotal
5,732
125
1,212
(83)
-		 6,986
3,642
10,628

RCP annual report 2021

72

Notes to the financial statements continued

Funds not included in total return Balance at
Income		 Gains Conversion to
Transfers
‘Frozen’		 Balance at
01/01/2021 income permanent 31/12/2021
capital
£000
£000		 £000 £000
£000
£000		 £000
Thomas Cotton Fund 186
4		 15 -
(4)		 - 201
The London Fever Hospital Research Fund 175
3		 25 (1) (3) - 199
Saltwell Will Trust Research Branch 1,076
16		 157 (6) (16) - 1,227
Will Edmunds Clinical Research Fund 487
7		 66 (3) (7) - 550
Drabu Fund 122
2		 16 (1) (2) - 137
Subtotal 2,046
32		 279 (11) (31) - 2,315
Total endowment 7,778
157		 1,491 (94) (31) 3,642 12,943

The RCP received a total return order from the Charity Commission, dated 6 February 2012, which enables the trustees to decide which part of the unapplied total return from the investment of the charity’s permanent endowments should be held on trust for application for the purposes of the charity.

Funds with closing balances over £300k are as follows:

RCP annual report 2021

73

Notes to the financial statements continued

24 Analysis of group net assets after pension scheme liability Analysis of group net assets after pension scheme liability Analysis of group net assets after pension scheme liability
Intangible and
tangible assets

Loan
Investments
Net liabilities inc.
pension liability
Total
2021

Total
2020
£000
£000
£000
£000
£000
£000
Unrestricted:
Designated Fixed Assets
Fund		 27,174
(7,500)
-
-
19,673
17,241
Legacies Development Fund - -
147
147
147
CareQualityImprovement - -
105
105
105
27,174
(7,500)		 -
252
19,925
17,493
General funds -
23,275
(6,924)		 16,350
12,423
27,174
(7,500)		 23,275
(6,673)		 36,275
29,916
Restricted - 1,633
1,844
3,477
3,710
Endowment - -
11,562
1,381
12,943
11,420
Total 27,174
(7,500)		 36,470
(3,448)		 52,695
45,046

RCP annual report 2021

74

Notes to the financial statements continued

25 Trading subsidiary – The RCP Regent’s Park Limited 25 Trading subsidiary – The RCP Regent’s Park Limited 25 Trading subsidiary – The RCP Regent’s Park Limited
The tradingresults and balance sheet of the RCP subsidiarycompanyas extracted from its audited accounts are set out below.
2021
2020
Profit and loss account £000
£000
Turnover 1,448
928
Cost of sales (594)
(476)
Grossprofit 854
452
Administrative expenses (865)
(558)
Operating profit/(loss) (11)
(106)
Gift aid to Royal College of Physicians -
-
Retainedprofit/(loss) for the financialyear
(11)
(106)
Included within operatingcosts is £795k(2020: £530k),which represents a reimbursement in respect of costs incurred bythe RCP.
2021
2020
Balance sheet £000
£000
Debtors 199
90
Debtor – due from RCP 791
214
Balance at bank 264
142
Current and total assets 1,254
446
Creditors due within 1year: (972)
(277)
Creditors due more than 1year: (399)
(275)
Total creditors (1,371)
(552)
Net assets (117)
(106)
Capital and reserves
Accumulated deficit (117)
(106)
Called upshare capital £1
£1
Shareholders’ funds £1
£1

The RCP’s wholly owned trading subsidiary, The RCP Regent’s Park Limited, was incorporated on 17 September 2001, company registration 04288664.

The operating loss for the year ended 31 December 2021 was £117k (2020: loss £106k).

The principal activity of the company is to organise, provide facilities for and hold conferences, seminars, and courses of instruction, demonstrations, lectures, exhibitions, private dinners and functions.

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75

Notes to the financial statements continued

26 Pension schemes

Total pension costs charged for the year were £49k (2020: £79k) for the defined benefit pension scheme and employer pension contributions of £1,323k (2020: £1,407k) for the defined contribution pension scheme.

There are two defined contribution schemes. One scheme closed to new members in 2018 – employer contribution rates for this defined contribution scheme are determined by the members’ age bands with incremental rates for older members. The new scheme opened for new membership has a flat employer contribution rate of 7%.

The defined benefit pension scheme is closed to new members and closed to future accrual. There is no further salary linkage. For the purposes of FRS 102 the valuation of the defined benefit scheme has been calculated under FRS 102 as at 31 December 2021 by a qualified actuary.

The valuation, details of which are given below, shows £21.96 million of assets and £22.34 million of liabilities, resulting in a deficit of £0.39 million.

The scheme’s assets and liabilities as at 31 December 2021, analysis of pension costs and details of the valuation were as follows:

Principal assumptions 2021 2020 2019 2018 2017
%per annum %per annum %per annum %per annum %per annum
Discount rate 1.85 1.30 2.00 2.90 2.50
Aggregate long-term expected rate of return on assets 1.85 1.30 2.00 2.90 2.50
Rate of increase of salaries n/a n/a n/a n/a n/a
RPI inflation assumption forpensions inpayment 3.25 2.75 3.00 3.25 3.20
CPI inflation assumption for deferredpensions 2.65 2.15 2.00 2.25 2.20
Pension increases 3.15 2.75 2.95 3.15 3.10
Pension commencement lump sum taken at retirement 18.75% of benefit
value		 18.75% of benefit
value		 18.75% of benefit
value		 18.75% of benefit
value		 18.75% of benefit
value

Mortality tables: 90% of S2PMA tables for men and 80% of S2PFA tables for women using CMI 2018 projections with a 1.25% long-term rate of improvement based on year of birth.

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Notes to the financial statements continued

The assets valued below are in the form of monies invested with Standard Life, Newton Investment Management and Legal and General Investment Management, together with the trustees’ bank account. The assets in the scheme and the expected rate of return were:

Assets breakdown 2021
2020
%
%
Real return and absolute return funds -
-
Diversified Growth Fund -
-
UK Government index-linkedgilts -
-
Corporate bonds -
-
Multi asset credit 33.00
34.44
UK corporate bonds 12.69
14.12
Liabilitydriven investments 22.21
27.33
Equities 16.31
14.91
Cash 15.79
9.20
Total market value of assets 100
100

The pension scheme has not invested in any of Royal College of Physicians’ own financial instruments, nor in properties or other assets used by the Royal College of Physicians. The assets are all quoted in an active market.

Movement in deficit during the year 2021
2020
£000
£000
Pension scheme liabilityat the beginningof theyear (4,239) (4,243)
Actuarial losses andgains onpresent value of obligations 416
(2,315)
Experiencegains and losses on defined benefit obligations 1,430
-
Gains/(losses)on return of scheme assets 1,091
1,713
Employer contributions 965
685
Net interest on the net defined benefit liability (49) (79)
(386) (4,239)
2021
2020
£000
£000
Present value of scheme liabilities at beginningof theyear 24,526
22,482
Interest cost 315
443
Actuarial(loss)/gain on scheme liabilityassumption changes (1,846) 2,315
Benefitspaid (653) (714)
Present value of scheme liabilities at the end of theyear 22,342
24,526

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77

Notes to the financial statements continued

Movement in deficit during the year 2021
2020
£000
£000
Fair value of scheme assets at beginningof theyear 20,287
18,239
Interest income 266
364
Return on scheme assets 1,091
1,713
Employer contributions 965
685
Benefitspaid (653) (714)
Fair value of scheme assets at the end of theyear 21,956
20,287
2021 2020
£000
£000
Fair value of scheme assets 21,956
20,287
Value of liabilities(defined benefit obligation) (22,342) (24,526)
Funded status (386) (4,239)
Recognisedpension scheme liability (386) (4,239)
Analysis of pension scheme assets and liabilities for the current and previous five financial periods 2021 2020 2019 2018 2017 2016
£000 £000 £000 £000 £000 £000
Present value of scheme liability (22,342) (24,526) (22,482) (19,966) (22,604) (22,962)
Fair value of scheme assets 21,956
20,287
18,239
16,988
16,690
15,683
Deficit (386) (4,239) (4,243) (2,978) (5,914) (7,279)

At the date of the last triennial statutory actuarial assessment as at 1 January 2018, the market value of the scheme was £19.3 million and the actuarial value of those assets represented 83% of the value of the benefits which had accrued at that date, allowing for future pension increases.

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Notes to the financial statements continued

27 Lease obligations 2021 2020
£000 £000
Operating leases on land and buildings, by expiry date:
Under 1year 13 123
1 to 5years 34 58
5yearsplus 27,562 27,571
Total future minimum operating lease commitments 27,609 27,752
Operating leases on office equipment and computers, by expiry date:
Under 1year 11 20
1 to 5years - 11
5yearsplus - -
Total future minimum operating lease commitments 11 31
Finance leases on IT equipment, by expiry date:
Under 1year 91 91
1 to 5years 204 294
5yearsplus - -
Total future finance lease commitments 295 385
Finance leases on land and buildings, by expiry date:
Under 1year 100 -
1 to 5years 375 -
5yearsplus -
Total future minimum finance lease commitments 475 -

In August 2019 the RCP signed an agreement for lease for 69,890 square feet over seven floors of ‘The Spine’ with Liverpool City Council for 25 years. The rental for the total period is £27.5 million. The lease came into effect at the end of June 2020.

The new finance lease in year, relates to integrated equipment within The Spine.

28 Related party transactions

The Royal College of Physicians, a charity registered (charity number 210508) in England and Wales, is the ultimate controlling parent of its subsidiary undertaking, The RCP Regent’s Park Limited, which is consolidated on a line-by-line basis in these group accounts. During the year the Royal College of Physicians received £795k income from The RCP Regent’s Park Limited. At 31 December 2021 The RCP Regent’s Park Limited owed the RCP £399k in relation to an inter-company loan and the RCP owed the trading company £791k in respect of inter-company transactions. There were no other related party transactions in the period.

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79

Notes to the financial statements continued

29 Comparative notes from the prior year

a Consolidated statement of financial activities for the year ended 31 December 2020

Notes Unrestricted
funds		 Restricted Endowment Total funds
funds funds 31 Dec 20 31 Dec 19
£000 £000 £000 £000 £000
Income from:
Fundraising
2		 307 1,931 - 2,238 594
Charitable activities
Care Quality Improvement
3		 2,501 4,876 - 7,377 8,530
Education and Federation
4		 9,819 159 - 9,978 17,982
Membership Support and Global Engagement
5		 7,818 2 - 7,820 8,096
Communications, Policy and Research*
6		 42 88 - 130 130
Heritage and investing in our future
7		 71 - - 71 73
Meetings and events (medical) 573 - - 573 4,269
Activities to generate funds
Investment income
8		 448 18 200 666 1,085
Meetings and events (non-medical) – trading
25		 928 - - 928 1,772
COVID-19 Job Retention Scheme 1,083 11 - 1,094
Other income 148 - - 148 201
Total income 23,738 7,085 200 31,023 42,732
Expenditure on:
Raising funds
Fundraising costs 346 - - 346 253
Investment management fees 113 4 48 165 159
Meetings and events (non-medical)
25		 1,033 - - 1,033 1,713
1,492 4 48 1,544 2,125
Charitable activities
Care Quality Improvement
9		 4,181 4,686 - 8,867 10,605
Education and Federation
10		 9,244 487 - 9,731 14,138
Membership Support and Global Engagement
11		 3,602 157 - 3,759 4,668

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80

Notes to the financial statements continued

Notes Unrestricted
funds		 Restricted Endowment Total funds
funds funds 31 Dec 20
31 Dec 19
Communications, Policy and Research
12		 3,211 75 - 3,286
4,016
Heritage and investing in our future
13		 2,698 3 - 2,701
2,265
Meetings and events (medical) 4,350 - - 4,350
6,016
Trusts and fellowships - 3 66 69
66
Total expenditure
14/15		 28,778 5,415 114 34,307
43,899
Net operating (loss)/gain (5,040) 1,670 86 (3,284)
(1,167)
Net gains/(losses) on investment assets 1,064 15 381 1,460
3,712
Net income/(expenditure) (3,976) 1,685 467 (1,824)
2,545
Transfers between funds
21/22		 1,353 (1,331) (22) -
-
Actuarial (losses)/gains on defined benefit pension scheme
26		 (602) - - (602)
(1,874)
Net movement in funds for theyear (3,225) 354 445 (2,426)
671
Funds brought forward at 1 Jan 2020
21/22/23		 33,141 3,356 10,975 47,472
46,801
Funds carried forward at 31 December 2020 29,916 3,710 11,420 45,046
47,472

b Unrestricted funds 2020

21 Unrestricted funds
Balance as at
01/01/2020		 Income Expenditure Gains/losses Transfers
Balance as at
31/12/2020
£000 £000 £000 £000 £000
£000
Unrestrictedgeneral 13,678 23,738 (28,778) 443 3,342
12,423
Unrestricted designated
Leasehold Replacement Fund 4,357 - - 19 (4,376) -
Fixed and Intangible Assets Fund
14,780		 - - - 2,461
17,241
Legacies Development Fund 147 - - - 147
Care QualityImprovement 105 - - - 105
Total 33,141 23,738 (28,778) 462 1,353
29,916

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Notes to the financial statements continued

c Restricted funds 2020

Restricted funds Balance at Income Expenses Gains Transfers Balance at
01/01/2020 31/12/2020
£000 £000 £000 £000 £000 £000
CareQualityImprovement* 620 2,122 (1,971) - 23 794
National Guideline Centre - 2,761 (2,640) - (2) 119
Education 962 163 (425) - - 700
MembershipSupport and Global Engagement*** 178 2 (20) - 4 164
Drabu MTI Programme 37 10 (6) 2 43
Physicians for Africa*** 24 127 (131) 20
Eric Watts donation 100 - (33) - - 67
RCP North** 100 1,051 - - (1,151) -
Physicians’ Fund** 120 80 - - - 200
External communications 75 88 (75) - - 88
Dr Everley-Jones legacy 320 5 (2) 6 (227) 102
Harold Thomas Barten Trust 106 2 (1) 2 - 109
Frank Peacock Bequest 65 1 - 1 - 67
Catherine Mills Bequest 70 2 - 1 - 73
Queenie Louisa Higgins Bequest 47 - - 1 - 48
Thomas Cotton Trust 73 - - - - 73
The London Fever Hospital Fund 15 1 - - 3 19
The Saltwell Will Trust Research Branch 124 - - - 14 138
Will Edmunds Clinical Research Trusts 24 - - - 3 27
17 other funds balances below £40,000 296 10 (7) 4 - 303
Total 3,356 7,085 (5,415) 15 (1,331) 3,710

*formerly Clinical Standards

**formerly Fundraising

***formerly included in Membership Support and Global Engagement

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Notes to the financial statements continued

d Endowment funds 2020

Endowment fund
Unapplied
total return
01/01/2020
Income
Gains
Conversion to
income
Transfers		 Unapplied
total return
‘Frozen’
permanent
capital
Total
endowment
31/12/2020
31/12/2020
31/12/2020
£000
£000
£000
£000
£000		 £000
£000
£000
Bradshaw Trust
203
7
6
(31)
-		 185
143
328
Eden Fellowshipin Paediatrics
1,102
26
23
(6)
-		 1,145
142
1,287
John Rosser Scholarship
29
1
1
-
-		 31
42
73
Joseph Senior White Trust
101
4
5
(1)
-		 109
161
270
Lewis Thomas Gibbon Jenkins-Briton Ferry
1,297
50
47
(31)
-		 1,363
1,250
2,613
ORL Wilson Bequest
105
3
3
(1)
-		 110
44
154
James Maxwell Grant Prophit Bequest
433
19
18
(5)
-		 465
539
1,004
Sadleir Trust
357
10
8
(2)
-		 373
91
464
Samuel Leonard Simpson Fellowship
613
17
17
(4)
-		 643
280
923
T K Stubbins bequest
40
3
3
(17)
-		 29
104
133
Watson Smith Trust
522
20
18
(5)
-		 555
470
1,025
William WitheringPrize
134
4
3
(1)
-		 140
38
178
Dr J D RamsayScholarship
46
1
1
-
-		 48
30
78
Graham Bull Prize
51
-
1
-
-		 52
25
77
Sir Michael Perrin Lecture
76
1
2
-
-		 79
12
91
LadyTeale Lecture
95
3
3
(1)
-		 100
44
144
John Glyn
95
4
3
(1)
-		 101
80
181
Dame Sheila Kift Bequest
34
1
1
-
-		 36
38
74
17 other funds with balances below £40,000
161
4
5
(2)
-		 168
109
277
Subtotal
5,494
178
168
(108)
-		 5,732
3,642
9,374

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83

Notes to the financial statements continued

Funds not included in total return Balance at
Income		 Gains Conversion Transfers ‘Frozen’ Balance at
01/01/2020 to income permanent 31/12/2020
capital
£000
£000		 £000 £000 £000 £000 £000
Thomas Cotton Fund 180
-		 6 - - - 186
The London Fever Hospital Research Fund 168
3		 8 (1) (3) - 175
Saltwell Will Trust Research Branch 924
14		 155 (3) (14) - 1,076
Will Edmunds Clinical Research Fund 447
3		 41 (1) (3) - 487
Drabu Fund 120
2		 3 (1) (2) - 122
Subtotal 1,839
22		 213 (6) (22) - 2,046
Total endowment 7,333
200		 381 (114) (22) 3,642 11,420

e Analysis of group net assets after pension scheme liability 2020

Analysis of group net assets after pension scheme liability Analysis of group net assets after pension scheme liability Analysis of group net assets after pension scheme liability
Total
Intangible and
tangible assets

Loan		 Investments
Net current
assets inc.
pension liability		 2020 2019
£000
£000		 £000
£000		 £000 £000
Unrestricted:
Designated Leasehold Replacement Fund -
-		 -
-		 - 4,357
Fixed
Assets 24,741
(7,500)		 -
-		 17,241 14,780
Fund
Legacies Development Fund -
-		 -
147		 147 147
CareQuality Improvement -
-		 -
105		 105 179
24,741
(7,500)		 -
252		 17,493 19,463
General funds -
-		 20,939
(8,516)		 12,423 13,678
24,741
(7,500)		 20,939
(8,264)		 29,916 33,141
Restricted -
-		 1,888
1,822		 3,710 3,356
Endowment -
-		 10,105
1,315		 11,420 10,975
Total 24,741
(7,500)		 32,932
(5,127)		 45,046 47,472

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84

Notes to the financial statements continued

30 Capital commitments

The Royal College of Physicians had a capital commitment of £974k as at 31 December 2021 (2020: £3,284k), the majority of which relates to electrical works on the Regent’s Park estate.

31 Contingent liabilities

Historically, the College has accounted for Federation activity in its VAT returns; however, in 2022 the Federation registered for VAT in its own name and will now submit its own VAT returns, but also is required to make retrospective returns back to 2008. The Federation estimates that the VAT charge retrospectively could be £740,000; however, this is before any retrospective returns are submitted by the College to exclude Federation activity and a recalculation of the partial exemption methodology, thereby generating a refund of VAT payable that may offset in part or in full the retrospective Federation VAT charge. The resolution of this matter is expected by the end of 2022.

The Trustees of the defined benefit pension scheme have engaged legal advisers to advise on whether previous scheme deeds going back to 1974 have been properly implemented. These involve both terms of the scheme as well as removal and appointment of trustees. In anticipation that this work will result in more favourable benefits and therefore higher liabilities, the actuarial valuation of the defined benefit pension scheme dated 1 January 2021 contained a contingency in anticipation of this. Although that contingency is only an approximation and not recognised in the accounting valuation of the scheme, there will be an increase to the deficit repair plan payments from 2022 onwards and until the next actuarial valuation at 1 January 2024. It is not expected that the resolution of this matter will be complete until at least the end of 2022.

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Awards, fellowships and major donors

Awards, prizes and lectures

Ambuj Nath Bose prize

Dr Stephen Walker

Christmas lecture

Dr Sheuli Porkess

Teale essay prize for trainees

Caitriona Cox

Samuel Gee lecture

Professor Mary Reilly

RCP-NIHR Clinical Research Network awards

Dr Ashish Abdul Dr David Tucker Dr Hermione Price Dr Richard Balasubramaniam Professor Andrew Ustianowski Dr Amit Patel

Croonian lecture

Professor Hywel Williams

FitzPatrick lecture

Professor Andrew Lees

Graham Bull prize and Goulstonian lecture

Professor Rickie Patani

Harveian orator

Professor Sir Jonathan Van-Tam MBE

Lady Estelle Wolfson lecture in translational medicine

Dr Axel Petzold

Linacre lecture

Dr Lucy Turner

Fellowships and bursaries

John Glyn bursary in rheumatology Dr Ilfita Sahbudin

Lewis Thomas Gibbon Jenkins of Briton Ferry fellowship Dr David Williams

Samuel Leonard Simpson fellowship in endocrinology

Dr Tim Robbins

Whitney-Wood scholarship

Dr Amit Sud

Wellbeing of women – RCP entry level research scholarship Dr Melanie Nana

Moxon medal Professor Wei Shen Lim

President’s medal

Dr Peter Belfield

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Fellowship admissions

New fellows

1,134 elected under bye-law 8.2 (1) a 6 elected under bye-law 8.2 (1) b 166 elected under bye-law 8.2 (1) c 3 elected under bye-law 8.6 (1)

New honorary fellows

George Abraham Dr Rosemarie Baillod John Cairns Michael Dixon Dr Bruce J Kirenga Dr Yukari C Manabe Adam Matthews Graham Meek Professor Sir Jonathan Van-Tam MBE

Professor Chuka Nwokolo CBE Overbury Pfizer Rosetrees Trust Sanofi Takeda Tay Charitable Trust Dr Olwen Williams OBE The Williams Charitable Trust The Wolfson Foundation

Major donors for 2021

The Amateurs Trust AstraZeneca UK BD Professor William Brumfitt CAE Healthcare Daiichi Sankyo Dinwoodie Charitable Company Dr Barry Anthony Enoch Sir Andrew Goddard GSK Jerwood Foundation Modiano Charitable Trust Norgine Novartis Novo Nordisk

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Administrative information

Principal address

11 St Andrews Place Regent’s Park London NW1 4LE

Principal advisers

Solicitors

Fieldfisher LLP Riverbank House 2 Swan Lane London EC4R 3TT

DAC Beachcroft LLC Administration Centre Portwall Place, Portwall Lane Bristol BS1 9HS

Bankers

C Hoare and Company 37 Fleet Street London EC4P 4DQ

Lloyds plc National Clubs and Charities Centre Sedgemoor House Dean Gate Avenue Blackbrook Business Park Taunton TA1 2UF

Santander UK plc Education Specialist Sectors Group 4 St Paul’s Square Liverpool L3 9SJ

Auditor

Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW

Investment managers

Cazenove Capital Management 12 Moorgate London EC2R 6DA

Ruffer LLP 80 Victoria Street London SW1E 5JL

Morgan Stanley Private Wealth Management 25 Cabot Square Canary Wharf London E14 4QA

CCLA Investment Management Senator House 85 Queen Victoria Street London EC4V 4ET

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88

11 St Andrews Place Regent’s Park London NW1 4LE

The Spine 2 Paddington Village Liverpool L7 3FA

www.rcp.ac.uk

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