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2023-12-31-accounts

Celebrating diversity in medicine

RCP annual report 2023

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RCP annual report 2023

Contents

Contents
Who we are and what we do 3
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 17
Our enablers 21
Looking ahead 24
Our structure, governance and management 27
Statement of trustees’ responsibilities 30
Risk management 31
Officers and key staff of the RCP 33
Summary of our income and expenditure 39
Our financial policies 40
Financial review 43
Independent auditor’s report to the trustees of the RCP 45
Financial statements 48
Consolidated statement of financial activities 48
Consolidated and RCP balance sheets 50
Consolidated statement of cash flow 52
Notes to the consolidated statement of cash flow 52
Notes to the financial statements 54
Awards, fellowships and donors 75
Administrative information 77

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RCP annual report 2023

Who we are and what we do

About the RCP

The Royal College of Physicians (RCP) is a professional membership body for physicians, with 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 dengue 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 broadly.

Our partnership with patients

Our Patient and Carer Network (PCN) was established in 2004. A network of volunteers throughout England and Wales, PCN members are involved in the full range of RCP activities. Their invaluable contribution helps to ensure a continuous focus on patient-centred care, patient safety and health improvement. Partnership is key, with patients and carers providing a vital range of lived experiences and perspectives, which help to inform the design and delivery of healthcare.

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RCP annual report 2023

Our vision, mission and values

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

Our values are taking care , learning and being collaborative .

Public benefit

The Royal College of Physicians (RCP) was established by royal charter from King Henry VIII 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.

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RCP annual report 2023

Foreword

Dr Sarah Clarke, RCP president Dr Ian Bullock, chief executive

It has been another challenging year for the NHS, marked by industrial action and lengthy waiting lists, with services under strain and many healthcare workers feeling exhausted and demoralised. Against this testing backdrop, it’s remarkable to still find positive examples of innovation, progress and improvements in care – and yet, there are many.

Through this year’s annual report, we want to celebrate diversity in medicine and the outstanding achievements of our members and fellows. Our membership is a global community of over 40,000 members and fellows, spanning every career stage from medical student to emeritus consultant. It brings together doctors of all backgrounds, ethnicities and ages who work in a diverse range of roles and specialties. We’re united by our ambition to deliver the very best care for our patients, alongside a thirst for knowledge and the desire to keep learning from each other.

This formed the heart of RCP activities in 2023 under our three strategic pillars of educating, improving and influencing. Our popular conferences, regional updates and webinars provided key opportunities to come together, learn new skills and debate fresh ideas. We were also proud to launch an innovative new postgraduate certificate focusing on the care of adults with learning disabilities.

In the area of improving care, we hosted four summits in partnership with NHSE to shape the future of outpatient care. To help standardise care for inpatients with diabetes, we added a new Diabetes Care Accreditation Programme to our suite of successful accreditation programmes. We were also delighted to launch Medical Care – driving change, our online hub showcasing best practice and real-world examples of quality improvement.

With a stronger campaigning focus on health inequalities, we launched a revised position paper on the topic, and celebrated the key milestone of over 250 organisations signing up to the RCP-led Inequalities in Health Alliance. We finally saw the launch of the NHS England Long Term Workforce Plan, which committed to double the number of medical students and increase postgraduate medical training places over the next decade. Although it fell as a result of the general election, we welcomed new legislation, which was introduced to create a smoke-free generation.

In terms of our financial position, high inflation and industrial action led to a small overall deficit for the year. An improvement plan was implemented as part of our long-term financial strategy, which significantly reduced our planned deficit for 2023 and will bring the RCP back into surplus in 2024.

During the year, we responded to the voices of our fellows and members on the role of physician associates. Your concerns led to an extraordinary general meeting in 2024. We are listening and responding to these concerns while supporting the Faculty of Physician Associates to move towards becoming an independent faculty. We are also focused on supporting and empowering the next generation of physicians and improving working conditions for all.

The next year will be a challenge in healthcare but with your engagement and support we will advocate and lead the way forward for the medical profession.

Thank you to our members and fellows, boards and committees, officers, staff and volunteers – we couldn’t do what we do without you.

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RCP annual report 2023

Report of trustees

The trustees of the RCP are pleased to present their annual report for the year ended 31 December 2023. The report presents our activities, significant achievements and successes in 2023.

Professor David Croisdale-Appleby OBE, chair of the Board of Trustees’ message

The great majority of organisations in the health and care sector have faced, and continue to face, challenging times, and the RCP is no exception. But I am pleased to say that I and my fellow trustees are confident that our careful governance over the last year has supported and facilitated the clinical leadership given to the college through our president and vice presidents. We recruited additional specialist experts to the Board of Trustees in the fields of strategy, legal, financial, property and income generation, thereby ensuring that we have the experience and expertise to engage with and overcome the challenges, but also to realise the opportunities – both current and those we anticipate in the future.

Our journey to financial recovery and the creation of financial surpluses should be completed this year. This will allow our clinical leaders to further expand the fields in which the college gives national and global leadership.

During the year the Board met formally on five occasions, and in addition there were many committee and informal meetings of trustees in order to remain closely involved in fulfilling our triple roles of scrutiny, strategy and culture.

We look forward to the coming year with great enthusiasm and confidence.

Our 2022–24 strategy

The RCP is both a professional membership body and a registered charity. Our strategy for 2022–24 is mindful of our responsibilities in both of these roles and was developed following consultation with our members and stakeholders. This 3-year plan sets out our three main priorities of educating , improving and influencing . These priorities are underpinned by a set of five ‘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 covers our main activities and achievements under the three priority areas, with a section on our enablers.

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RCP annual report 2023

Federation of the Royal Colleges of Physicians of the UK

The Federation of the Royal Colleges of Physicians of the UK 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.

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RCP annual report 2023

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.

Contributing to the Chief Registrar Programme on the importance of involving patients and carers is a real pleasure. Providing practical ideas and suggestions to the senior clinical leaders of tomorrow fulfils the aim of the PCN to support the strategic priorities of the RCP’

– Lynne Quinney, Patient and Carer Network member

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RCP annual report 2023

Educating Key activities in 2023

We provided over

1,000

CPD hours through our conferences, regional updates, workshops and webinars

We launched PACES23, an updated assessment of key clinical skills for doctors

Since its launch, the RCP Assessment Unit has delivered exams to over 20,000

candidates

Our free-to-members e-learning resources were accessed over times 6,000

Our RCP Medicine podcasts have been downloaded over times 500,000

We supported more than 150 international medical graduates to work and train in the NHS

We launched a new postgraduate certificate focused on the care of adults with learning disabilities

More than

100 chief registrars enrolled on our flagship programme

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RCP annual report 2023

Educating

Our activities and achievements

We offered a wealth of in-person and online learning opportunities, including award-winning conferences, webinars, podcasts and e-learning programmes. We launched PACES23 – the revised practical assessment designed to test the key clinical skills of trainee doctors – as well as a new postgraduate certificate focusing on the care of adults with learning disabilities.

Assessment and exams

Following 12 months of planning, PACES23 (Practical Assessment of Clinical Examination Skills) was rolled out. The updated exam reflects changes in postgraduate medical education, training and assessment, as well as in the workplace. It includes an updated examination carousel of five ‘stations’ and greater emphasis on communication skills. During autumn, the RCP Assessment Unit ran PACES across 26 centres, and overall we increased the number of PACES exam slots by 10% in 2023.

Over 70 trainees were recruited to participate in training for the new-format Diploma in Geriatric Medicine when it commences in 2024.

The Federation successfully delivered all MRCP(UK) examination diets with candidate numbers near to pre-pandemic levels. International delivery of MRCP(UK) Part 1 and 2 written exams was moved to in-centre computerbased testing.

We ran physician associate (PA) exams for almost 1,000 candidates and trained over 100 new examiners for the PA National Examination.

Supporting physicians throughout their careers

Our diverse and stimulating range of conferences, webinars and lectures provided key learning opportunities to support doctors with their continuing professional development. The award-winning annual conference Medicine 2023 included 85 speakers across 20 specialties and championed sustainability as its key theme. Med+, our acute and general medicine conference, focused on generalism versus specialism and included innovative workshops, hands-on sessions and an abstract competition. Around 1,200 delegates attended one of our popular face-to-face regional updates in medicine.

Initiatives to support specific audiences included:

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RCP annual report 2023

Educating

Eight trust visits with RCP senior officers took place in England, Wales and Northern Ireland, hearing from our physicians locally on their experiences working in the NHS.

The Federation successfully implemented a CPD Diary development for two reviewers for distance learning applications and introduced payment reminders to the system to improve fee collection.

Physician associates

Our biggest-ever Faculty of Physician Associates (FPA) annual conference was delivered to 1,600 delegates via two simultaneous in-person conferences in Liverpool and London, plus online access for a virtual audience.

We launched an ePortfolio for qualified PA members to support their continuing professional development.

We published title and introduction guidance to support PAs in providing a standardised way of introducing themselves to patients and more clarity on their role within the multidisciplinary team.

Training and curriculum development

We launched a new postgraduate certificate pathway focused on the medical care needs of adults with learning disabilities. Delivered in partnership with Edge Hill University, it will ensure health professionals are equipped to provide high-quality, person-centred care for adults with a learning disability.

We contributed to three new commissioned leadership programmes on stroke, renal medicine, and sports and exercise medicine, training mentors and developing leaders of the future.

Learners were enrolled for the new RCP professional certificates for gender identity healthcare professionals. These provide a work-based credential solution for busy clinicians.

We carried out an NHSE-funded pilot to approved training sites to deliver the Diploma in Obstetric Medicine for higher specialty trainees, and designed a national recruitment process for trainee applicants.

We designed four clinical research e-learning modules, which were launched on the NIHR Learn platform.

The Federation successfully launched and implemented all new group 1 specialty curricula with trainees moved to the new curricula on the ePortfolio. All group 2 specialty curricula were submitted to the GMC.

A record number of 220 Certificate of Eligibility for Specialist Registration (CESR) applications was processed, and all specialty-specific guidance for CESR was updated to the new GMC standard.

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RCP annual report 2023

Educating

Global work

We delivered more than 20 activities globally, shaped by 130 RCP fellows and attracting a global audience of around 9,500.

The RCP Iraq Network went from strength to strength in 2023, growing our international membership in Iraq. We delivered 29 educational activities to over 1,500 attendees, and four mock PACES exams and associated workshops.

We concluded a pilot of the Global Women Leaders Programme in Pakistan and initiated activities in Jordan, India and Iraq.

We supported over 150 new international medical graduates to work and train in the NHS through the Medical Training Initiative.

We held bespoke membership events for our members and fellows in India, Jordan, Malaysia, Pakistan, Singapore and Sri Lanka.

To provide increased opportunities for international doctors to sit our clinical exams, the Federation launched new PACES centres in Pune, India and Sarawak, Malaysia. PACES pathfinder examinations took place in Nepal and Bahrain, and factfinders in Mumbai and Abu Dhabi.

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RCP annual report 2023

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.

The Patient and Carer Network welcomed the launch of the Medical Care – driving change online hub and were pleased to have helped shape its development from the outset’ – Eddie Kinsella, chair of the RCP Patient and Carer Network

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RCP annual report 2023

Improving Key activities in 2023

We launched a new Diabetes Care Accreditation Programme to improve NHS services for adult inpatients with diabetes

In partnership with NHSE, we brought together over 100

professionals and patients at four key summits to shape the future of outpatient care

Over 70

services demonstrated that they were improving care by meeting the accreditation standards across our five programmes

We launched Medical Care – driving change, our new online improvement hub

We completed 17 invited reviews to support healthcare organisations

200

members and fellows responded to our surveys to support developments in digital health

We published national audit reports on respiratory care, inpatient falls and fragility fracture care, each including a focus on health inequalities

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RCP annual report 2023

Improving

Our activities and achievements

We worked collaboratively with patients, specialist societies and other key partners on resources to support clinical teams to deliver improvements in healthcare. Our highly regarded audit and accreditation programmes focused on improving care for patients through measuring care and outcomes. This portfolio now includes a new accreditation programme to support inpatient diabetes care. We launched Medical Care – driving change, an improvement hub to showcase everyday examples of good practice and innovation across the NHS.

Audit, accreditation and service review

The Healthcare Quality Improvement Partnership (HQIP) commissioned us to deliver two national clinical audit programmes: the Falls and Fragility Fractures Audit Programme (FFFAP) and the National Respiratory Audit Programme (NRAP). NRAP, formerly the National Asthma and COPD Audit Programme (NACAP), was recommissioned in 2023 with a new name to indicate the ambition to expand its remit to include other respiratory diseases under a new 3-year contract. In both programmes, we are planning work to support local clinical teams over the next 3 years to use the audit data to implement measurable improvements in care.

Following a successful pilot, we launched the Diabetes Care Accreditation Programme (DCAP). Developed through collaborative work with Diabetes UK and senior diabetes clinicians, this first-of-its-kind programme aims to improve care by setting quality standards and measuring service performance through external assessment. NHS services that deliver inpatient care for patients with diabetes can now sign up and start their

accreditation journey. Nine services registered in 2023. DCAP adds to the RCP’s existing suite of successful accreditation programmes, which cover endoscopy, allergy, pulmonary rehabilitation, liver and immunodeficiency.

Invited reviews support healthcare organisations requiring independent external advice. We delivered a record 17 reviews in 2023, many of them large-scale and complex. Reviews are conducted in collaboration with the relevant specialist societies and members of the MDT. We also delivered a well-attended training day to over 40 medical directors to share their experiences of difficult-to-manage scenarios.

Enabling improvements in care

We worked in partnership with NHS England to develop a new strategy for outpatient care, hosting four key summits in 2023. Our goal was to set out new ambitions for outpatient care and the actions we need to take to deliver real change. We brought together over 100 stakeholders to develop and test concepts prior to the publication of the new strategy in 2024. It builds on the ambitions outlined in our guidance on modern outpatient care (see below).

We increased the number of clinicians on our education programmes who focus on improvement of health and healthcare or prevention of ill health during the project phase of their programme.

An NHSE-funded pilot enabled approved training sites to deliver the Diploma in Obstetric Medicine to higher specialty trainees, and design a national recruitment process for trainee applicants to start in November 2023.

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RCP annual report 2023

Improving

Guidance and resources

Over 100 chief registrars were supported with leadership development and action learning sets for the duration of their quality improvement projects. We also provided development and engagement opportunities for the alumni of the Chief Registrar Programme to build improvement leadership potential in the NHS. Our Patient and Carer Network supported chief registrars in how best to involve patients in the leadership of local improvement activity.

We launched Medical Care – driving change, an open-access website that provides a range of resources to support clinical teams with sustainable improvement and innovative practice. Patient safety is one of four key themed content areas, which generated a webinar series with partners including NHS England, NCEPOD and the Centre for Perioperative Care. We collaborated with 11 organisations and over 60 health professionals to produce blogs, webinars and videos, as well as 12 CPD-accredited content items.

We continued to lead the Patient Safety Committee, which convenes diverse stakeholders across the system to support knowledge sharing and skills development for medical teams. Supported by members of the committee, we were a major contributor to an acute kidney injury summit in the autumn. We also hosted a symposium at the tenth anniversary of the Bristol Patient Safety Conference, which focused on the Patient Safety Incident Response Framework.

We launched an updated acute care toolkit for acute oncology on the acute medical unit. It aims to support acute and general medical clinicians caring for patients with cancer who have been admitted to acute care.

Our new guidance on Modern outpatient care sets out a framework to support patient-centred outpatient care for service planning and delivery for local services to identify priorities for improvement.

In support of building relationships with social care professionals, we worked with the Association of Directors of Adult Social Services to better understand the dynamics of the relationship between physicians and social care. We went on to develop a short document for RCP members, to suggest some key principles for how physicians can work effectively with their colleagues in social care.

In digital health we began work to better understand how we can support those at risk of digital exclusion and those who are developing a career in this area. Two member surveys identified the need for the RCP to shape the way that digital systems are designed and implemented to meet the needs of physicians and patients. We also hosted a summit led by the Academy of Medical Royal Colleges and the NHS Digital Academy to bring colleges and medical leaders together to explore how to build a digitally capable medical workforce, equipped with the skills and knowledge to navigate and harness the potential of digital technologies for better patient safety and outcomes.

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RCP annual report 2023

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.

I was proud to take part on a project to help shape the future of outpatient care. I was listened to and fully involved from the outset – it’s been a great example of co-production in action.’

– Marian Armstrong, Patient and Carer Network member

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RCP annual report 2023

Influencing Key activities in 2023

There were 36 parliamentary mentions and 17

written parliamentary questions relating to our work

Over

250

organisations have now signed up to our Inequalities in Health Alliance

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More than
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4,000
physicians completed the
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We launched Spark, our award-winning new intranet, which is improving staff collaboration and engagement

Our website had well over

3 million

We gained over 11,000

page views and nearly 100,000 downloads of expert content

OnlineEdTM

new followers on social media

Articles in our journals were downloaded almost 9 million

We welcomed over 4,700

new members to the RCP and FPA, and 985 doctors became fellows and will help to shape our work

times, helping to shape good practice

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RCP annual report 2023

Influencing

Our activities and achievements

We continued to promote, advocate and campaign on the issues that we know matter most to our members. We launched a revised position paper on health inequalities, secured commitments on the prevention of ill health from the Labour Party, and celebrated the key milestone of over 250 organisations signing up to the RCP-led Inequalities in Health Alliance.

Policy and campaigns

We welcomed the NHS England Long Term Workforce plan with its commitment to double medical school places and increase doctor numbers, following a 5-year RCP campaign. We were also delighted that the Labour Party’s health mission reflected many of the issues we’ve been campaigning on for years, including better long-term workforce planning and tackling poor health. We continued to engage with the Welsh government on the delivery of its national workforce implementation plan.

In the public health arena, and addition to our work leading the Inequalities in Health Alliance, we played a proactive role in the Alcohol Health Alliance, Obesity Health Alliance and UK Health Alliance on Climate Change. We welcomed the prime minister’s ‘smoke-free generation’ policy announcement.

We published Shape of medicine , a discussion paper that sets out the need to improve the training experience and better support SAS and locally employed doctors and international medical graduates.

We welcomed the laying of legislation to introduce UK wide statutory regulation of anaesthesia associates and physician associates under the GMC. We launched a programme of work to address issues around physician associates’ scope of practice and supervision and published titles and introductions guidance to improve understanding for patients.

Underlining our commitment to sustainability, we launched our new sustainability policy priority and position paper on healthcare sustainability and climate change at our Medicine 2023 conference. We established a new advisory group, developed an action plan and appointed a special adviser on healthcare sustainability to lead this work.

Every year the RCP conducts a census on behalf of the three royal colleges of physicians to provide unique insight into the workforce in the UK. We published and used the findings of the UK census of consultant physicians and SAS doctors to influence change across the medical workforce and health inequalities, launching separate briefing papers for the UK, Wales and Northern Ireland.

We conducted a number of additional censuses and surveys of our members to inform our policy work, including surveys on digital health, trainees and later careers (which led to updated later careers guidance), and a census of physician associates.

We published a report on acute oncology services in Wales with 20 case studies; and a Northern Ireland briefing paper on the medical workforce at a Stormont event hosted by the now-health minister.

A specialties and workforce roundtable we held in December 2023 was attended by nearly all of the specialties and representatives from the GMC and NHSE workforce training and education.

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RCP annual report 2023

Influencing

Media and engagement

We continued to promote the physician voice through the RCP’s media profile, protect and enhance our reputation and extend our influence as thought leaders ahead of a general election. In 2023, we achieved almost 5,000 pieces of media coverage and more than doubled our social media engagement numbers from the year before, from 50,000 to 109,000.

We launched a new intranet site, Spark, which has improved collaboration and information sharing among RCP staff. The new site won gold in the internal communications category of the CIPR Pride North West awards and been shortlisted for other awards.

We published powerful interviews in Commentary with national leaders, and an insightful October edition that was guest-edited by the RCP Trainees Committee.

A redesign of RCP education programme materials is improving consistency and engagement as well as giving our presentations and workbooks a more professional look and feel.

Spreading best practice

Monthly downloads of articles in our journals increased by 25% for Clinical Medicine and 40% for Future Healthcare Journal compared with 2022. There were almost 9 million article downloads across both journals, and more than 175,000 online views of Commentary , our member magazine.

We continued with work to transition the RCP journals to a new publishing partner, with the aim of widening the journals’ reach, increasing their impact and sustainability. We completed negotiations with publisher Elsevier and signed cost-saving contracts for our journals, which includes free publishing for RCP members.

We created engaging and topical programmes for our key conferences, offering delegates the opportunity to hear from expert speakers on the latest practice, new guidance and innovative thinking. We delivered a further 28 events, including a range of webinars and lectures, such as our Christmas lecture for young people, and the Harveian Oration, which was delivered by Sir Patrick Vallance.

Together with three specialist societies, we responded to the NHSE’s national approach to winter planning with four evidence-based interventions for hospitals to maximise the impact of the current workforce in urgent and emergency care. We also outlined the risks and benefits of hospital at home and virtual wards.

Promoting medicine and the RCP

Our RCP museum collections were viewed online and in person by 600,000 people in 2023.

We opened Fortitude, a new exhibition on the COVID-19 pandemic, to positive reviews. Professor Sir Chris Whitty, chief medical officer for England, and Professor Sir Stephen Powis, national medical director of NHS England, attended the launch event – along with nearly 100 other guests.

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RCP annual report 2023

Our enablers

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

1 Membership engagement

More than 4,780 new members joined the RCP and FPA, and 985 doctors became fellows. Our popular RCP membership and fellowship ceremonies welcomed over 500 new members, over 400 new fellows and over 3,000 guests.

We carried out data validation and benchmarking to improve our membership data and understanding of our membership.

We began the development of a new public-facing Register of Fellows to support and showcase our community of fellows.

We provided targeted support in the form of networks, communications and events to key membership communities including trainees, SAS doctors and consultants.

Our e-learning programmes, which are free to all members, were accessed over 6,000 times in 2023. Many workshops also remained free to members and we gave discounts for conferences and longer development programmes.

We published Shape of medicine and sought feedback from members. In Northern Ireland we held a workshop for trainees in collaboration with RCPE/RCPSG, and in Wales we developed an SAS doctor network and continued our RCP Cyswllt/Connect hospital engagement visits, led by the vice president for Wales.

To support member engagement at a regional level, we appointed 12 new regional advisers across England, Wales and Northern Ireland.

The RCP Library service provides a wide range of online resources and research tools, which continue to be particularly popular with international fellows.

2 Working with patients

We worked with the RCP Patient and Carer Network (PCN), as well as other patient advisers, to enhance the impact of the patient and carer voice across the RCP’s three strategic themes. This included work to shape a new national strategy for outpatient care with NHS England.

We appointed a new patient involvement officer to provide strategic and thought leadership to the RCP on patient involvement and engagement, and to ensure patient voices continue to shape our work.

We included patients in our policy development work, our advisory groups and on the editorial boards of our journals, putting lived experience at the heart of our work.

Our invited review service introduced a new element into the review of single clinical records resulting from patient complaints. This includes inviting patients and/or relatives to provide a statement outlining their areas of concern, with the offer of an interview with the review panel. This work has been developed with the advice of our lay representatives on the PCN, who were also involved in the development of guidance.

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RCP annual report 2023

3 Diversity and inclusion

We published our second update on progress implementing the 29 recommendations from Ben Summerskill’s 2020 report on diversity and inclusion at the RCP, and were pleased to report good overall progress, reflecting our strong commitment to strengthen a culture of diversity and inclusion.

We continued to be mindful of diversity when engaging speakers for conferences and events, recruiting to roles, boards and committees, and in our communications and published materials.

Inclusion was central to our policy work, especially our campaign to tackle health inequalities. We began to develop our ideas around tackling misogyny in medicine.

We continued to engage with social and societal movements, tackling institutional bias and prejudice through our heritage and museums work.

We include equality, diversity and inclusion (EDI) topics across the range of educational and leadership programmes, and have established new EDI training modules to support examiner induction and continuous development.

EDI continued to be a primary focus for Federation activity, reflected in the work towards achieving the objectives set out in the GMC’s action plan. We created new pan-Federation approaches to collecting EDI data that can be used across all medical colleges, training providers and statutory bodies. This work is currently in consultation.

4 Governance and stakeholder engagement

We continued to be a leading voice among royal colleges and in the health sector, speaking up for physicians at every opportunity and working closely with stakeholders, including governments, the NHS, regulators, unions and national charities.

In 2023 we held elections for president, senior censor and vice president for education and training, and elected councillors. We created a delegated subgroup of Council to consider elections and wider constitutional issues and advise on future options.

We continued to support government initiatives regarding curricula development and our growing suite of credentials.

We provided examiner recruitment and training for PACES, the Diploma in Geriatric Medicine and PA examinations.

We finalised a data sharing agreement (DSAs) with NHS England (on behalf of all UK statutory education bodies) and Federation.

The Federation completed procurement of a new exams management system, which mitigates significant risks and enables more efficient delivery of exams.

Our commercial events companies RCP Spaces at The Spine and RCP London Events hosted 276 events in Liverpool and 370 in London. RCP London Events won gold for the best conference venue (London) at the London Venue and Catering Awards 2023, and silver for the best conference venue (up to 500 theatre style) (London) at the Conference and Events Awards 2023.

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RCP annual report 2023

Initiatives for staff included the launch of Spark, the new RCP intranet. Built on Microsoft SharePoint, Spark is delivering increased collaboration, interaction and cost savings. Our Learning at Work Week saw over 400 attendees joining sessions and won a national award from the Campaign for Learning. And we were proud to launch our new ‘Living our values’ framework, outlining how we can work more effectively together and build a positive environment of trust and inclusion.

We continued our work to improve IT security and made upgrades to the network to improve IT services for staff and visitors to the RCP at Regent’s Park.

medicine, championed sustainability by doubling the composting area for recycling garden waste.

We merged our heritage and academic libraries and enhanced the library space to host our education training programmes in London.

We undertook a large programme of infrastructure improvements in our London home, including the installation of new heating pumps to reduce our maintenance and energy costs.

All RCP at Regent’s Park staff are now based in our main building and we consolidated underutilised spaces in The Spine to ensure we maximise our estates. We quadrupled our tenant income streams based in our London and Liverpool buildings during 2023.

5 Sustainability

To reduce travel and decrease carbon emissions, we delivered more education and training virtually both in the UK and internationally. Over half of our training days are now delivered online. Our boards are also now entirely virtual, decreasing travel emissions from those who would have been travelling to our venues.

We developed an action plan on sustainability and climate change and appointed a special adviser to lead on its delivery.

Our meetings and events team had a successful year, achieving a budget surplus of over £1m.

RCP Spaces at The Spine won a number of awards for sustainability, including gold at the miaList Awards 2023 and bronze at the Conference and Events Awards 2023.

The RCP Medicinal Garden, home to over 1,000 plants with links to

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RCP annual report 2023

Looking ahead

In 2024 we plan to carry out the following activities, grouped under our three priority areas and enablers:

Educating

Improving

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RCP annual report 2023

Influencing

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RCP annual report 2023

Our enablers

1. Membership engagement

2. Working with patients

3. Diversity and inclusion

4. Governance and stakeholder engagement

5. Sustainability

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RCP annual report 2023

Our structure, governance and management

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

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RCP annual report 2023

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:

Lay trustees are recruited following a rigorous selection process based on the needs of the Board in terms of expertise in areas of interest or risk to the RCP that require specialist support. All 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 that maintains close and effective links with the medical specialist societies and reports to Council:

RCP officers

The senior officers of the RCP (president, clinical vice president, academic vice president, vice president for education and training, treasurer and registrar) all have trustee responsibilities during their tenure. The president, treasurer and registrar are trustees of the charity for the entirety of their tenure, while vice presidents are trustees on a rotational basis. 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.

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RCP annual report 2023

Fellows

Fellowship is the highest level of membership of the RCP and comes with many benefits and responsibilities. Fellows will be clinical leaders within their teams and will demonstrate excellence in a range of professional domains. Fellows are nominated or can be self-nominated for election with Council as final arbiter. Fellows have the right to stand for office, to vote for officers and to attend and vote at the AGM.

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

Boards

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

Finance and Resources Board

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

In 2023 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.

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RCP annual report 2023

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:

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.

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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RCP annual report 2023

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 and 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 trafficking statement on its website.

Risk management and principal risks

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 operations 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 2023 and into 2024 are:

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RCP annual report 2023

Remedial actions to mitigate or remove these risk areas focus on:

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RCP annual report 2023

Officers and key staff of the RCP

The officers and councillors listed below served during 2023. Current lists can be found via www.rcp.ac.uk/about-us/governance

Visitor

His Majesty The King

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

President

College officers

Vice president for Wales Dr Hilary Williams (appointed July 2023) Dr Olwen Williams OBE (demitted June 2023)

Vice president – Global

Dr Omar Mustafa (appointed September 2023) Dr Mumtaz Patel (demitted July 2023)

Linacre fellow

Dr Shruthi Konda

Harveian librarian Dr Louella Vaughan

Patient involvement officer

Dr Laura Waters (appointed November 2023) Dr Amy Proffitt (demitted May 2023)

Dr Sarah Clarke

Registrar Professor Cathryn Edwards OBE

Treasurer

Professor Simon Bowman

Clinical vice president Dr John Dean

Academic vice president Professor Ramesh Arasaradnam OBE

Vice president for education and training (senior censor) Dr Mumtaz Patel (appointed August 2023) Professor Áine Burns (demitted July 2023)

Censors

Dr Tun Aung

Dr Anita Banerjee (appointed August 2023) Dr Daniel Furmedge (appointed August 2023) Dr Harriet Gordon Dr Manish Gautam (demitted July 2023) Dr Ruth Law Dr Rajaratnam Mathialagan Dr Catherine Sargent (demitted July 2023) Professor Tom Solomon CBE Dr Jo Sykes

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RCP annual report 2023

Medical directors

Medical director of CME and CPD Dr Mumtaz Patel (appointed August 2023) Professor Áine Burns (demitted July 2023)

Medical director of publishing Professor Anton Emmanuel

Director, Medical Workforce Unit Dr Sarah Logan

Director, invited reviews Dr Adam De Belder

Clinical leads

Specialist, associate specialist and specialty (SAS) lead Dr James Read

Examiners

Clinical lead for assessment Dr Celia Bielawski

Senior examiner: RCP PACES Dr Rasha Mukhtar (appointed October 2023) Dr Abdul-Majeed Salmasi (demitted September 2023)

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

Improvement clinical director Dr Andrew Rochford

Digital health clinical lead Dr Anne Kinderlerer

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

Editor – Future Healthcare Journal Dr Andrew Duncombe (appointed March 2023) Dr Kevin Fox (demitted February 2023)

Editor-in-chief, Medical Care – driving change Dr Daniel Smith (appointed March 2023)

Deputy registrar Dr Alastair Gilmore

Deputy medical director, invited reviews Dr Jonathan Bennett Dr Emma Reid (appointed May 2023) Dr Sean Weaver (appointed May 2023)

Garden fellow Professor John Newton

Representative on the Advisory Committee of the Chelsea Physic Garden Dr Noel Snell

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RCP annual report 2023

Officers of the Federation

Executive medical director Dr Gerrard Phillips

Medical director, training and development Dr Mike Jones

Medical director, assessment Dr Kenneth Dagg (demitted December 2023)

International medical director, training and development Professor David Black

Deputy international medical director, training and development Dr Alastair Miller

International medical director, assessment Dr Tanzeem Raza

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. The trustees listed below include those who served during 2023 and up to the date this report was signed on 20 June 2024.

Ex-officio members (senior officers)

Dr Sarah Clarke Professor Cathryn Edwards OBE (demitted March 2024) Professor Simon Bowman Professor Ramesh Arasaradnam OBE Professor Áine Burns (demitted July 2023) Dr John Dean (appointed July 2023) Dr Omar Mustafa (interim registrar, from April 2024) Dr Mumtaz Patel (observer, from August 2023)

Members nominated from Council

Medical director, CPD Dr Adrian Jennings

Deputy medical director, CPD Dr Umesh Dashora (appointed June 2023)

Associate medical director, written exams Professor Albert Ferro

Associate medical director, clinical exams Dr Stuart Hood (appointed medical director, assessment December 2023)

Deputy medical director, JRCPTB Dr David Marshall

Dr Joanna Szram (demitted March 2024) Dr James Read (appointed March 2023; demitted March 2024) Dr Ananthakrishnan Raghuram (appointed March 2023)

Lay members

Professor Charles Baden-Fuller (demitted December 2023) Professor David Croisdale-Appleby OBE Patrick Lowther (observer, appointed June 2023) Graham Meek (demitted June 2023) Anne Marie Millar (appointed February 2023) Katie Smith (appointed February 2023) Professor John Bateson (appointed June 2023) Dr Fiona Pathiraja (appointed June 2023) Dominic Whittle (appointed June 2023)

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RCP annual report 2023

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. The following list comprises Council members who served during 2023.

President

Representative of the Faculty of Pharmaceutical Medicine Dr Flic Gabbay

Representative of the Faculty of Physician Associates Jamie Saunders

Representative of the Faculty of Public Health Professor Kevin Fenton CBE

Dr Sarah Clarke

Senior censor and education and training vice president Dr Mumtaz Patel (appointed August 2023) Professor Áine Burns (demitted July 2023)

Clinical vice president Dr John Dean

Academic vice president Professor Ramesh Arasaradnam OBE

Treasurer Professor Simon Bowman

Registrar Professor Cathryn Edwards OBE

Vice president for Wales Dr Hilary Williams (appointed August 2023) Dr Olwen Williams OBE (demitted July 2023)

Representative of the Faculty of Forensic and Legal Medicine Dr Bernadette Butler (appointed May 2023) Professor Paul Marks (demitted May 2023)

Representative of the Faculty of Intensive Care Medicine Dr Daniele Bryden

Representative of the Faculty of Sport and Exercise Medicine Dr Natasha Jones (appointed September 2023)

Representative of the Royal College of Emergency Medicine Dr Adrian Boyle

Representatives of the regional advisers Dr Anita Banerjee (demitted November 2023) Dr Benjamin Chadwick (appointed December 2023) Dr Philip Johnston Dr Anita Jones (appointed December 2023) Dr Christopher Roseveare (demitted June 2023) Dr Vivek Goel

Vice president – Global Dr Omar Mustafa (appointed October 2023) Dr Mumtaz Patel (demitted July 2023)

Representative of the Faculty of Occupational Medicine Professor Steven Nimmo

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RCP annual report 2023

Elected councillors

Dr Tun Aung (demitted July 2023) Dr Angshu Bhowmik (demitted July 2023) Dr Eileen Burns MBE (appointed August 2023) Dr Helena Gleeson Dr Rowan Harwood (appointed August 2023) Dr Tobias Hillman (demitted October 2023) Professor Partha Kar OBE (appointed August 2023) Dr Catherine Mummery (demitted July 2023) Dr Khin Swe Myint Dr Ananthakrishnan Raghuram MBE Professor Ganesh Subramanian (appointed August 2023) Dr Mark Temple (demitted July 2023) Dr Victoria Tippett (appointed August 2023) Dr Louella Vaughan Dr Ajay Verma Dr Hilary Williams (appointed August 2023)

Representatives of the censors Dr Tun Aung Dr Harriet Gordon

Chair of the Patient and Carer Network Eddie Kinsella

Representatives of the New Consultants Committee Dr Katie Honney Dr Aidan O’Neill (appointed October 2023) Dr Kailash Krishnan (demitted September 2023)

Representatives of the Trainees Committee Dr Melanie Nana Dr Megan Rutter

Representative of the Staff and Associate Specialists Steering Group Dr James Read

Representatives of the specialist societies Professor Stephanie Baldeweg (appointed December 2023) Professor Mohammed Chowdhury Dr Tim Cooksley (demitted October 2023) Dr Sarah Cox Dr Richard Davenport (appointed May 2023) Professor Adam Gordon Professor John Greenwood Dr Joanna Ledingham (appointed June 2023) Dr Nicholas Murch (appointed October 2023) Dr Sanjeev Patel (demitted May 2023) Professor Andrew Veitch Dr Catherine Vinen (appointed September 2023) Dr Paul Walker Professor Thomas Warner (demitted May 2023)

Trustee councillors (in attendance) Dr Iain Lawrie (demitted February 2023) Dr Ananthakrishnan Raghuram MBE (appointed March 2023) Dr James Read (appointed March 2023) Dr Joanna Szram

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RCP annual report 2023

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

Tom Baker (appointed August 2023) Professor Della Freeth (until July 2023)

Executive director, Communications, Policy and Research Claire Burroughs

Chief executive officer – Federation Rachael O’Flynn (appointed September 2023)

Chief operating officer – Federation

Christopher Ward-McQuaid (interim, from April 2023) Yasmin Becker (until 31 March 2023)

Executive director, Finance Catherine Powell

Executive director, People and Culture

Chiraag Panchal (appointed March 2023, following a period as interim director of HR)

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RCP annual report 2023

Summary of our income and expenditure

----- Start of picture text -----
Income Expenditure
Total in 2023: £42.5 million Total in 2023: £43.3 million
Total in 2022: £38.4 million Total in 2022: £38.9 million
Breakdown of income in £000s Breakdown of expenditure in £000s
Donations, grants 1.2% £498 1.0% £419
and legacies Costs of fundraising
1.5% £579 1.7% £657
43.8% £18,601 51.3% £22,193
Educating Educating
46.1% £17,725 51.0% £19,831
12.3% £5,222 16.0% £6,928
Improving Improving
12.0% £4,626 17.0% £6,601
24.4% £10,372 18.8% £8,112
Influencing Influencing
24.9% £9,569 19.9% £7,738
Income from 1.5% £643 Investment 0.3% £150
investments management fees
1.3% £489 0.4% £153
Commercial meetings, 16.8% £7,139 Commercial meetings, 12.6% £5,457
events and other income 14.1% £5,430 events and other expenditure 10.1% £3,921
----- End of picture text -----

Notes

2023

Costs of fundraising include overheads (see Note 11 on p59). Educating includes examinations, conferences, education and training, library and museum services. Improving includes audit and accreditation programmes, invited reviews and quality improvement activities. 2022 Influencing includes membership activities, publishing, policy and campaigns..

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RCP annual report 2023

Our financial policies

Fundraising

The RCP is grateful for the exceptional level of support that we have received during 2023 from our generous donors and sponsors, including members and fellows, charitable trusts and foundations, and corporate partners.

Philanthropic support and corporate partnerships are fundamental to the work of the RCP and help us to fulfil our charitable mission to improve patient care and reduce ill health across communities. 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 ensuring the best possible health and healthcare for everyone.

Principal fundraising activities and performance

During 2023, we secured over £1.3 million in new gifts, pledges and sponsorships (including gifts to restricted and unrestricted funds). This was made up of £498k in donations, grants and legacies, £376k in sponsorship for specific work carried out as part of our charitable objectives, and £476k in pledges and amounts received to be redistributed and therefore not recorded in the statement of financial activities (SOFA).

Projects that were supported during the year included:

In April we welcomed members of our Corporate Partnership Programme to a dinner and discussion with our senior college officers. In September our legacy society, the Ina Cook Society, met for its annual lunch with our president, with 30 guests in attendance. In October we hosted a reception for donors to ECSACOP with the president of the Malawi College of Physicians as our guest of honour. In November we celebrated the inaugural Sarfraz Qureshi lecture with a reception in Dr Qureshi’s honour, hosted by our treasurer. During the year we also created the new Dorchester Patrons scheme to recognise the most generous regular donors to our library, archive, and museum.

Fundraising programme

The RCP’s fundraising programme is carried out by a dedicated 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. The direct costs of fundraising during the year amounted to £214k (2022: £286k), representing just over 16% of amounts secured, including pledges. Overhead allocation of £205k brings the overall cost to £419k.

Fundraising controls and regulation

We recognise that our fundraising success is dependent on maintaining the trust of our donors and the public. We have multiple controls in place to ensure that our fundraising remains ethical, transparent, respects vulnerable

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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.

We have an ethical fundraising policy and carry out due diligence to ensure that we do not receive any donations or sponsorships that conflict with our values. All our fundraisers receive mandatory 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 2023 (2022: 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 and the executive director of finance. The panel reports to the Finance and Resources Board.

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 2023, 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.

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

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.

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Policy on reserves

The trustees consider it prudent that unrestricted reserves should be sufficient to avoid the necessity of realising fixed assets held for the charity’s use; to maintain an adequate liquidity ratio; and to cover the short-term financial impact of specific areas of risk to which the charity is currently exposed.

The actual level of reserves is monitored against this policy and reviewed by the trustees throughout the year. Funds held in reserves not needed for immediate use are invested in line with the RCP’s charitable purpose.

At 31 December 2023 total reserves of RCP were £46.5 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 20 and 21 to the financial statements. At 31 December 2023 total restricted funds were £2.5 million and endowment funds were £12.6 million.

The RCP also holds reserves in the form of designated funds that are earmarked for particular purposes by the trustees. At 31 December 2023 the balance on the designated funds was £26.3 million. The main designated fund is the intangible and fixed assets fund, represented by tangible and intangible fixed assets which 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.

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 profit for the RCP’s wholly owned trading subsidiary, The RCP Regent’s Park Limited, for the year ended 31 December 2023 was £658k. The company is looking to grow its trading position through the provision of more virtual and hybrid events, as well as harnessing opportunities from new facilities at The Spine building. The trading results and balance sheet of the subsidiary extracted from its audited accounts are set out in note 23 to 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 20 June 2024 and signed on its behalf by:

Professor David Croisdale-Appleby Chair of Board of Trustees

Professor Simon Bowman Treasurer

The general reserves of the RCP as at 31 December 2023 were £5.1 million. Free reserves, net of designated funds and long-term lease liability, amount to £10.1m and represent 3 months of the unrestricted operational expenditure. The Board of Trustees has during 2024 updated the RCP reserves policy to ensure that adequate reserves are set aside to manage risks. This sets a reserve target of £10.5m, which is planned to be met by the end of 2024.

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Financial review

In 2023 the RCP delivered steady growth across all three strategic themes of educating, improving and influencing with a growth in unrestricted income of 13% as we deliver more activity for our members. Trading activity has also grown steadily in the year as event activity has built in The Spine, the RCP’s building in Liverpool.

However, the RCP has also faced the pressure of high inflation during the year, affecting examination delivery costs, catering, travel and maintenance costs. Industrial action has also added financial pressure with disrupted travel plans and more expensive alternatives used to ensure the delivery of RCP programmes. A financial improvement plan was introduced during the year, which has delivered savings across the college to combat these financial pressures. The net unrestricted operating surplus of £107k in 2022 shifted to a loss of £439k in 2023. As a result of the financial improvement plan, the RCP is budgeted to make a surplus in 2024.

Restricted expenditure has exceeded restricted income in 2023, as broughtforward restricted funds have been used on certain programmes. Overall, this resulted in a total operating loss of £449k (2022: loss of £697k).

Following challenging market conditions in 2022, 2023 saw a bounce market for financial markets. This resulted in an overall unrealised gain on investments of £1,582k (2022: loss of £3,582k). This, coupled with an actuarial loss on the (closed) defined benefit pension fund of £1,146k (2022: loss of £1,005k), resulted in an overall deficit net funds movement of £348k (2022: loss of £5,070k).

rose during the year from previous levels as event activity at The Spine increased. Restricted income recorded a 20% reduction due to the cessation of a national audit contract in 2022.

Overview of income and expenditure in 2023 and 2022

----- Start of picture text -----
50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
2023 income 2023 expenditure 2022 income 2022 expenditure
Unrestricted Restricted Endowment
£'000
----- End of picture text -----

During 2023 the RCP faced the continued pressure of increasing expenditure with high levels of inflation hitting energy, catering and maintenance costs. Industrial action during the year also disrupted travel, making travel for exams, events and education more expensive. The executive team has worked hard to mitigate the impact of these pressures by driving through efficiency savings across the RCP through its financial improvement plan. This resulted in an unrestricted loss in the year of £439k.

Investments

Income and expenditure

The RCP’s consolidated total income in 2023 was £42.5 million (2022: £38.4 million), representing steady growth from the previous year. Unrestricted income increased by 13% in 2023 across the three priority areas of educating, improving and influencing. Trading income also

As at 31 December 2023 our investments, including cash deposits, stood at £27.6 million. During 2023 the board of trustees made the decision to liquidate part of the investment portfolio and to pay off the RCP loan. This was to limit the impact of rising interest rates on the RCP’s financial position.

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The liquidation of assets generated a realised gain of £158k in the year and unrealised gains for the investment portfolio amounted to £1.6m for 2023. 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. During 2023 the main investment portfolio generated a return of 7.3%, this is 3.3% ahead of CPI in December 2023.

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 2023, the defined benefit pension scheme, which has been closed to new members since 2002 and to further accrual from 2008, increased its surplus position to £826k (2022: surplus of £637k) on an FRS 102 basis. This significant improvement has been caused by a combination of market movements, which has led to a lower value being placed on the liabilities, and an increase in employer contributions over the period.

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. The next triennial valuation is due on 1 January 2024.

Balance sheet and reserves

At the end of 2023 the RCP held net assets of £46.5 million of which £27.6 million is the market value of our investment portfolio and £9.3 million is in cash. Endowment and restricted funds comprise £15.1 million, therefore unrestricted funds comprise £31.5 million, of which free reserves (net of the designated funds and long-term lease liability) have reduced to £10.1 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. During 2024 the RCP reserves policy was updated to ensure that adequate reserves are set aside to manage the risks facing the college with a minimum target being set at 3 months unrestricted operating expenditure.

While the RCP’s balance sheet position remains strong, the economic conditions facing the RCP remain challenging. The focus will be on growing our membership and keeping expenditure down while continuing to carry out key activities as set out in our strategy.

Professor Simon Bowman Treasurer

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.

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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 (‘the charity’) and its subsidiary (‘the group’) for the year ended 31 December 2023 which comprise the consolidated statement of financial activities, the parent and consolidated balance sheets, the consolidated cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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 charity’s or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The 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

45

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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 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 30), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group and 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 Acts 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, including internal

46

specialists. 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 charity and group operate, 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 the Charities SORP (FRS102) 2019. 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 charity’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group for fraud. The laws and regulations we considered in this context for the UK operations were employment legislation and taxation legislation.

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 donations, grants and contract income, the defined benefit pension liability, 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.

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 Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been 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

Date: 6 August 2024

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.

.

47

Financial statements

Consolidated statement of financial activities for the year ended 31 December 2023

Notes Unrestricted
funds		 Restricted
funds		 Endowment
funds		 Total funds Total funds
31 Dec 23 31 Dec 22
£000 £000 £000 £000 £000
Income from:
Donations, grants and legacies 2 446 52 - 498 579
Charitable activities
Educating 3 18,331 270 - 18,601 17,725
Improving 4 3,708 1,514 - 5,222 4,626
Influencing 5 10,269 103 - 10,372 9,569
Activities to generate funds
Investment income 6 405 14 224 643 489
Trading activities 23 5,979 - - 5,979 4,661
Other income 7 1,160 - - 1,160 769
Total income 40,298 1,953 224 42,475 38,418
Expenditure on:
Raising funds
Fundraising costs 419 - - 419 657
Investment management fees 93 3 54 150 153
Trading activities 23 5,321 - - 5,321 3,713
Charitable activities
Educating 8 21,777 398 18 22,193 19,831
Improving 9 5,042 1,838 48 6,928 6,601
Influencing 10 7,949 163 - 8,112 7,738
Other 136 - 136 208
Total expenditure 11/12 40,737 2,402 120 43,259 38,901
Net operating (loss)/gain (439) (449) 104 (784) (483)
Net gains/(losses) on investment assets 14 719 43 820 1,582 (3,582)

48

Notes Unrestricted
funds		 Restricted
funds		 Endowment
funds		 Total funds Total funds
31 Dec 23 31 Dec 22
Net income/(expenditure) 280 (406) 924 798 (4,065)
Transfers between funds 19/20/21 (56) 98 (42) - -
Actuarial (losses)/gains on defined benefit pension scheme 24 (1,146) - - (1,146) (1,005)
Net movement in funds for theyear (922) (308) 882 (348) (5,070)
Funds brought forward at 1 Jan 2023 19/20/21 32,375 2,757 11,738 46,870 51,940
Funds carried forward at 31 December 2023 31,453 2,449 12,620 46,522 46,870

49

Consolidated and RCP balance sheets as at 31 December 2023

2023 2022 2022
Notes Group RCP
Group		 RCP
£000 £000 £000 £000
Fixed assets
Intangible assets 13a 1,016 1,016 1,097 1,097
Tangible fixed assets 13b 24,646 24,646 25,528 25,528
Investments 14 27,550 27,550 32,808 32,808
53,212 53,212 59,433 59,433
Current assets
Stocks 68 68 68 68
Debtors 15 3,867 4,260 2,939 4,082
Investment accounts 7 1 7 1
Cash 9,318 8,017 12,235 10,016
13,260 12,346 15,249 14,167
Creditors
Amounts falling due within 1year
Creditors and accrued expenses 16 (7,094) (6,180) (8,505) (7,423)
Examination and other income
received in advance 16 (7,876) (7,876) (7,872) (7,872)
Provisions 16b - - (50) (50)
Loan - - (441) (441)
(14,970) (14,056) (16,868) (15,786)
Net current liabilities (1,710) (1,710) (1,619) (1,619)
Total assets less current liabilities 51,502 51,502 57,814 57,814
Amounts falling due after 1year
Loan - - (6,838) (6,838)
Other liabilities (4,980) (4,980) (4,106) (4,106)
Net non-current liabilities (4,980) (4,980) (10,944) (10,944)
Net assets excluding pension liability 46,522 46,522 46,870 46,870
Defined benefitpension scheme liability 24 - - - -
Net assets including pension liability 22 46,522 46,522 46,870 46,870

50

2023 2022
Notes Group RCP
Group
RCP
Represented by
Unrestricted funds:
Designated funds 19
Fixed and Intangible Assets Fund 25,662 25,662 19,346
19,346
Legacies Development Fund 120 120 120
120
CareQualityImprovement 18 18 18
18
Maintenance Fund 160 160 80
80
JAG Fund 345 345 -
-
26,305 26,305 19,564
19,564

General charitable fund 5,148 5,148 12,811
12,811
Less: Pension scheme liabilities 24 - - -
-
5,148 5,148 12,811
12,811

Total unrestricted 31,453 31,453 32,375
32,375
Restricted 20 2,449 2,449 2,757
2,757
Endowment 21 12,620 12,620 11,738
11,738
46,522 46,522 46,870
46,870

The results of the parent charity for the year ended 31 December 2023 was a £348k deficit (2022: £5,070k deficit).

Approved for and on behalf of the RCP (Charity Registration No. 210508) on 20 June 2024 and authorised for issue.

President: Dr Sarah Clarke

Treasurer: Professor Simon Bowman

51

Consolidated statement of cash flow for the year ended 31 December 2023

2023
£000		 2022
£000
Cash flow from operating activities
Net cashprovided by / (used in)operatingactivities A (1,039) 1,561
Dividends,interest and rents from investments 642 761
Purchase ofproperty, plant and equipment (1,417) (1,841)
Purchase of intangible assets (266) (304)
Proceeds from sale of investments 7,047 171
Purchase of investments (48) (91)
Net cashprovided by (used in) investing activities 5,958 (1,304)
Borrowings interest andprincipal repayments (7,654) (350)
Finance leasepayments (182) (206)
Net cashprovided by (used in) financing activities (7,836) (556)
Change in cash and cash equivalents in the reporting period (2,917) (299)
Cash and cash equivalents at the beginningof the reporting period B 12,242 12,541
Cash and cash equivalents at the end of the reporting period B 9,325 12,242

Notes to consolidated statement of cash flow for the year ended 31 December 2023

2023
£000

2022
£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) 798
(4,065)
Adjustments for:
Depreciation charges 2,298
2,285
Amortisation charges 347
364
Disposal and impairment of assets -
45
Loss/(gains)on investments (1,741) 3,582
Increase/(decrease)inprovisions (50) 7
Dividends,interest and rents from investments (642) (761)
(Gain)on valuation of defined benefitpension scheme (1,146) (1,391)
(Increase)/decrease in stocks -
40
(Increase)/decrease in debtors (928) 876
Increase/(decrease)in creditors 25
579
Net cashprovided by/(used in) operating activities (1,039)
1,561

52

2023
£000
2022
£000
9,318
12,235
7
7
9,325
12,242
B. Analysis of cash and cash equivalents
Cash in hand
Notice deposits and investment accounts(less than 30 days)
Total cash and cash equivalents
Analysis of changes in net debt
At 1 Jan 2023
Cash flow		 New finance
leases
Acquired debt
Interest and non-
utilisation charges
At 31 Dec 2023
£000
£000		 £000
£000
£000
£000
Cash and cash equivalents
Cash in hand
12,235
(2,917)		 -
-
-
9,318
Notice deposits and investment accounts (less than
30 days)
7
-		 -
-
-
7
Total cash and cash equivalents
12,242
(2,917)		 -
-
-
9,325
**Borrowings **
Loan to finance fixed assets – falling due after
more than oneyear*
(7,279)
7,654		 -
-
(375)
-
Finance lease obligations
(552)
182		 -
-
(7)
(377)
Total borrowings
(7,831)
7,836		 -
-
(382)
(377)
Total net debt
4,411
4,919		 -
-
(382)
8,948

53

Notes to the financial statements

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, as presented on pages 50 to 78, have been formatted to report under the three priority areas of educating, improving and influencing for the year ending 31 December 2023, aligned to the RCP’s 2022–24 strategy.

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (2015) 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 accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports)

Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

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.

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 has been undertaken including:

For the period to September 2025 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 can drawdown against funds held within the investment portfolio if required. The Board has agreed a financial strategy for the period 2024–27 that demonstrates that the RCP has adequate levels of cash and reserves going forward. 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.

54

Notes to the financial statements continued

Income

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 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 is recognised in the year it is due. Any membership fees received in advance are shown as deferred income. 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 49 years 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%. Depreciation and amortisation is allocated to the departments within the RCP on the basis of area occupied. 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.

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 recognised as 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.

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

55

Notes to the financial statements continued

disposal proceeds and either opening market value or cost if acquired during the year.

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.

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.

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 19.

Restricted funds

Restricted funds are subject to specific conditions laid down by the donors as to how they may be used. Note 20 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 21.

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 21 of the financial statements have been recalculated as at the above date.

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 24.

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.

56

Notes to the financial statements continued

Incoming resources

Unrestricted Restricted/ endowment 2023 2022
£000 £000 £000 £000
2 Donations, grants and legacies
Donations 215 52 267 569
Grants - - - -
Legacies 231 - 231 10
446 52 498 579
3 Educating
Examinations 12,230 - 12,230 12,358
Education and training 4,128 263 4,391 3,977
Conferences 1,838 - 1,838 1,350
Libraryand museum 135 7 142 40
18,331 270 18,601 17,725
4 Improving
Accreditationprogrammes 2,660 29 2,689 2,146
National audits 26 1,401 1,427 1,854
Qualityimprovementprogrammes 496 84 580 375
Invited reviews 526 - 526 251
3,708 1,514 5,222 4,626
5 Influencing
Subscriptions 8,641 - 8,641 7,992
Journals andpublications 678 - 678 708
Media, policyand campaigns 136 103 239 241
Member conferences and events 814 - 814 628
10,269 103 10,372 9,569
6 Investment income
Dividends 210 128 338 129
Interest on investments 164 107 271 360
Bank interest 31 3 34 -
405 238 643 489
7 Other income
Rental income 856 - 856 480
Café sales 124 - 124 62
Buildingcontribution - - - 144
Other 22 - 22 83
Realisedgains 158 - 158 -
1,160 - 1,160 769

57

Notes to the financial statements continued

Resources expended

Unrestricted Restricted/endowment 2023 2022
£000 £000 £000 £000
8 Educating
Examination services 10,271 - 10,271 9,326
Conferences 5,101 - 5,101 4,817
Education and training 5,177 400 5,577 4,456
Libraryand museum services 1,228 16 1,244 1,232
21,777 416 22,193 19,831
9 Improving
Accreditation 3,244 14 3,258 2,706
National audits 13 1,565 1,578 2,254
Qualityimprovement 1,174 21 1,195 963
Invited reviews 611 - 611 464
Awards,fellowships and bursaries - 286 286 214
5,042 1,886 6,928 6,601
10 Influencing
Membershipservices 2,075 - 2,075 1,895
Journals andpublications 1,491 - 1,491 1,574
Media, policyand campaigns 2,031 121 2,152 2,183
Member conferences and events 860 - 860 599
Committees 893 - 893 886
International networks 599 42 641 601
7,949 163 8,112 7,738

58

Notes to the financial statements continued

11
Expenditure on		 Direct costs
Staff costs
Other support costs		 Total 2023
Total 2022
£000
£000
£000		 £000
£000
Raising funds
Fundraisingcosts 29
185
205		 419
657
Investment management fees 150
-
-		 150
153
Tradingactivities 5,321
-
-		 5,321
3,713
Charitable expenditure
Educating 6,760
7,111
8,322		 22,193
19,831
Improving 1,970
2,397
2,561		 6,928
6,601
Influencing 1,754
2,860
3,498		 8,112
7,738
Other expenditure 136
-
-		 136
208
Total for 2023 16,120
12,553
14,586		 43,259
38,901
Total for 2022 13,951
11,475
13,475		 38,901
2023
2022
The analysis of other support costs is as follows: £000
£000
Propertyservices 6,780
6,282
Information technologycosts 2,773
2,507
Audio visual 366
410
Human resources 1,051
1,054
Finance 1,212
1,060
Internal events 372
118
Governance costs* 156
191
Central 1,876
1,853
14,586
13,475

*Governance costs include fees payable to the auditors from audit fees of £54.8k (2022: £52.7k) and non-audit services of £2.5k (2022: £2.4k).

59

Notes to the financial statements continued

12 Employees and trustees 2023 2022
The total costs of salaries and wages were as follows: £000 £000
Salaries and wages 15,509 14,210
Social securitycosts 1,628 1,537
Pension costs 1,299 1,208
18,436 16,955
2023 2022
The average number of employees in theyear was: 409 387
The number of employees whose emoluments exceeded £60,000 were:
£60,001–£70,000 20 14
£70,001–£80,000 9 12
£80,001–£90,000 6 1
£90,001–£100,000 2 2
£100,001–£110,000 4 2
£110,001–£120,000 - 1
£120,001–£130,000 - -
£130,001–£140,000 - -
£140,001–£150,000 - -
£150,001–£160,000 - 1
£160,001–£170,000 1 -
2023 2022
12a Keymanagementpersonnel £000 £000
Total employee benefitspaid to keymanagementpersonnel(Including pension contributions) 1,128 1,205
12b Terminationpayments 2023 2022
No ofpayments 4 6
Value ofpayments(£000) 52 111
12c Payments to trustees* 2023 2022
Number 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 waspaid to trustees from the RCP in the current orpreceding years.		 14 12
Value ofpayments(£000) 20 16

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

60

Notes to the financial statements continued

13a Intangible IT assets (Group and RCP) Intangible IT assets in use Intangible IT assets in use Intangible IT assets under construction Total 2023
£000 £000 £000
Cost at 1 January 2023 5,142 403 5,545
Additions 1 265 266
Transfers/adjustments - - -
Disposals - - -
Cost at 31 December 2023 5,143 668 5,811
Accumulated amortisation at 1 January 2023 (4,448) - (4,448)
Amortisation for theyear (347) - (347)
Disposals - - -
Accumulated amortisation at 31 December 2023 (4,795) - (4,795)
Net book value at 31 December 2023 348 668 1,016
Net book value at 31 December 2022 694 403 1,097
13b Tangible assets (Group and RCP) Leasehold Furniture and fixtures IT & AV tangible assets Assets under construction Total 2023
properties
£000 £000 £000 £000 £000
Cost at 1 January 2023 37,519 2,808 5,345 - 45,672
Additions 1,060 194 163 - 1,417
Transfers/adjustments - - - - -
Disposals - - - - -
Cost at 31 December 2023 38,579 3,002 5,508 - 47,089
Accumulated depreciation at 1 January 2023 (16,300) (1,003) (2,841) - (20,144)
Depreciation for theyear (1,427) (242) (630) - (2,299)
Disposals - - - - -
Accumulated depreciation at 31 December 2023
(17,727)		 (1,245) (3,471) - (22,443)
Net book value at 31 December 2023 20,852 1,757 2,037 - 24,646
Net book value at 31 December 2022 21,219 1,805 2,504 - 25,528

61

Notes to the financial statements continued

14 Investments (Group and RCP) Unrestricted
Total
Designated for leasehold
General
Restricted
Endowment
2023
2022
£000
£000
£000
£000
£000
£000
Market value at 1 January 2023 48
20,930
1,562
10,268
32,808
36,470
Additions at cost 7
42
-
-
49
91
Disposals (6)
(7,003)
(2)
(36)
(7,047)
(171)
Realised(Loss)/gains -
158
-
-
158
-
(Loss)/gains (3)
722
43
820
1,582
(3,582)
Total investments at 31 December 2023 46
14,849
1,603
11,052
27,550
32,808
Historical cost at 31 December 2023 12,576
556
10,551
23,683
28,996
The above investments are held as follows:
2023
2022
£000
£000
Equities
18,207
20,904
Bonds
3,064
2,989
Multi-asset funds
687
1,380
Alternatives
4,261
4,956
Cash
1,331
2,579
15
Debtors (Group and RCP)		 2023 2022
Group RCP Group RCP
£000 £000 £000 £000
Current
Trade debtors 1,978 1,665 1,532 1,206
Other debtors 134 133 79 79
Prepayments 1,366 1,366 1,130 1,130
Accrued income 389 389 198 198
Amounts due from subsidiary - 707 - 1,469
Non-current
3,867 4,260 2,939 4,082

62

Notes to the financial statements continued

16 Creditors and accrued expenses (Group and RCP)
2023
2022
Group
RCP
Group
RCP
£000
£000
£000
£000
Current
Trade creditors
1,610
1,595
1,226
1,206
Other creditors
2,103
1,289
2,892
1,954
Tax and social securitycreditors
633
633
959
959
Accruals
2,552
2,467
3,237
3,113
Obligations under finance lease
196
196
191
191
Bank loan*
-
-
441
441
7,094
6,180
8,946
7,864
Examination and other income received in advance (Group and RCP)
Balance b/f
1 Jan 23
Released to
SOFA
Received in
year
Balance c/f
31 Dec 23
£000
£000
£000
£000
Examination income
5,018
(5,018)
5,029
5,029
Other income
2,854
(2,974)
2,967
2,847
7,872
(7,992)
7,996
7,876
Non-current
Group
RCP
Group
RCP
£000
£000
£000
£000
Bank loan*
-
-
6,838
6,838
Accruals
4,799
4,799
3,745
3,745
Obligations under finance lease
181
181
361
361
4,980
4,980
10,944
10,944
16b Provisions for liabilities (Group) Other £000 2023 total 2022 total
Provisions at 1 January 50 50 43
Additionalprovisions made in theyear - - 7
Provisions released fromprioryears (50) (50) -
Provision for liabilities at 31 December - - 50

63

Notes to the financial statements continued

17 Contingent liabilities

HMRC has raised an assessment for underpaid VAT against the RCP in relation to services and staff made available by the RCP to the Federation of the Royal Colleges of Physicians of the UK. The RCP has formally requested a review of this decision with HMRC on the basis that services provided by RCP to the Federation are made in line with its role as a Federation partner. The outcome of the review is awaited from HMRC, there is then the opportunity for the RCP to appeal any decision in tribunal; so it is not practical to state the timing of any payment. No provision for any liability has been made in these financial statements due to the uncertainty of the outcome and the inability to reliably estimate its value.

18 Financial assets and liabilities 2023 2022
£000 £000
Financial assets held at fair value 27,550 32,808
Gains/(losses)on assets held at fair value 1,740 (3,581)
19 Unrestricted funds 19 Unrestricted funds
Balance as at
01/01/2023
Income
Expenditure
Gains/losses
Transfers
Balance as at
31/12/2023
£000
£000
£000
£000
£000
£000
Unrestrictedgeneral
12,811
40,298
(40,737)
(427)
(6,797)
5,148
Unrestricted designated
Fixed and Intangible Assets Fund
19,346
-
-
-
6,316
25,662
Legacies Development Fund
120
-
-
-
-
120
CareQualityImprovement
18
-
-
-
-
18
Maintenance Fund
80
80
160
JAG Fund
-
345
345
32,375
40,298
(40,737)
(427)
(56)
31,453

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 department. Maintenance Fund – the fund is designated for the quinquennial external building renovations for leased property in London. JAG Fund – the fund is designated for amounts ringfenced for future spend on the Joint Advisory Group.

64

Notes to the financial statements continued

20 Restricted funds Balance at Income Expenses Gains/(losses) Transfers Balance at
01/01/2023 31/12/2023
£000 £000 £000 £000 £000 £000
DorothyWhitneyWood – Physicians’ Fund 480 - (49) - - 431
National RespiratoryAudit Programme - 883 (861) - - 22
Falls and FragilityFracture Audit Programme 116 517 (704) - 71 -
Physicians’ Fund 168 13 (147) - - 34
Advanced clinicalpractice curricula development 102 72 (103) - - 71
The Saltwell Will Trust Research Branch 173 - - - 24 197
Research courseproject 203 73 (100) - - 176
Harold Thomas Barten Trust 113 2 (1) 9 - 123
Dr Everley-Jones legacy 93 1 - 7 - 101
KSS Clinical Education Fellowship 108 - (56) - - 52
External Affairs – Alcoholproject 101 104 (108) - - 97
Medical Care - 84 - - - 84
Sustainabilityfellow - 65 - - - 65
PulmonaryRehabilitation Services Accreditation Scheme
44		 - (13) - - 31
E-learningfor healthcare – acute medicineproject 43 - (11) - - 32
Catherine Mills Bequest 77 1 - 5 - 83
Thomas Cotton Trust 80 - - - 3 83
Frank Peacock Bequest 69 1 - 5 - 75
QIPS –patientpartners/medication safety 45 - - - - 45
Queenie Louisa Higgins Bequest 50 1 - 3 - 54
E-learningfor healthcareproject 30 - (30) - - -
Drabu MTIprogramme 45 - (42) - 2 5
Mackenzie-Mackinnon Streatfield 34 1 - 2 - 37
Fundraising 35 - - - - 35
Eric Watts donation 34 - (21) - - 13
Symons collection 34 - - - - 34
Will Edmonds Clinical Research Trust 41 2 - - 10 53
FundraisingHeritage Museum 34 - - - - 34
HEE-funded enhanced researchproject 30 28 (58) - - -
31 other funds balances below £30,000 375 105 (98) 12 (12) 382
Total 2,757 1,953 (2,402) 43 98 2,449

65

Notes to the financial statements continued

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

66

Notes to the financial statements continued

21 Endowment funds
Unapplied
total return
01/01/2023
Income
Gains/(Losses)
Conversion
to income
Transfers		 Unapplied total
return
‘Frozen’
permanent
capital
Total
endowment
31/12/2023
31/12/2023
31/12/2023
£000
£000
£000
£000
£000		 £000
£000
£000
Bradshaw Trust
194
6
23
(9)
-		 214
143
357
Eden Fellowshipin Paediatrics
1,192
25
93
(6)
-		 1,304
142
1,446
John Rosser Scholarship
34
1
5
-
-		 40
42
82
Joseph Senior White Trust
119
5
19
(1)
-		 142
161
303
Lewis Thomas Gibbon Jenkins-Briton Ferry
1,450
51
188
(17)
-		 1,672
1,250
2,922
ORL Wilson Bequest
116
3
11
(1)
-		 129
44
173
James Maxwell Grant Prophit Bequest
472
19
70
(36)
-		 525
539
1,064
Sadleir Trust
389
9
33
(2)
-		 429
91
520
Samuel Leonard Simpson Fellowship
677
18
67
(12)
-		 750
280
1,030
TK Stubbins bequest
21
2
9
(13)
-		 19
104
123
Watson Smith Trust
593
20
74
(6)
-		 681
470
1,151
William WitheringPrize
146
3
13
(1)
-		 161
38
199
Dr JD RamsayScholarship
51
2
6
-
-		 59
30
89
Graham Bull Prize
54
1
6
-
-		 61
25
86
Sir Michael Perrin Lecture
81
2
6
-
-		 89
12
101
LadyTeale Lecture
104
3
10
(1)
-		 116
44
160
John Glyn
109
4
13
(3)
-		 123
80
203
Dame Sheila Kift Bequest
40
1
5
-
-		 46
38
84
John Thornton Ingram Lecture
34
1
3
-
-		 38
6
44
Lockyer Lectureshipand Fellowship
29
1
3
-
-		 33
12
45
Simms Bequest
24
1
3
-
-		 28
16
44
Professor PF Thomas Bequest
28
1
4
-
-		 33
25
58
10 other funds with balances below £40,000
61
3
8
(2)
-		 70
50
120
Subtotal
6,018
182
672
(110)
-		 6,762
3,642
10,404

67

Notes to the financial statements continued

Funds not included in total return Balance at Income Gains/(losses) Conversion to Transfers ‘Frozen’ Balance at
01/01/2023 income permanent 31/12/2023
capital
£000 £000 £000 £000 £000 £000 £000
Thomas Cotton Fund 203 3 - - (3) - 203
The London Fever Hospital Research Fund 176 3 14 (1) (3) - 189
Saltwell Will Trust Research Branch 1,085 24 88 (6) (24) - 1,167
Will Edmonds Clinical Research Fund 491 10 37 (2) (10) - 526
Drabu Fund 123 2 9 (1) (2) - 131
Subtotal 2,078 42 148 (10) (42) - 2,216
Total endowment 8,096 224 820 (120) (42) 3,642 12,620

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:

68

Notes to the financial statements continued

22 Analysis of group net assets after pension scheme liability 22 Analysis of group net assets after pension scheme liability 22 Analysis of group net assets after pension scheme liability
Intangible and tangible
assets		 Investments Net liabilities inc
pension liability		 Total
2023		 Total
2022
£000 £000 £000 £000 £000
Unrestricted:
Designated Fixed Assets
Fund		 25,662 - - 25,662 19,346
Legacies Development Fund - - 120 120 120
CareQualityImprovement - - 18 18 18
Maintenance Fund - - 160 160 80
JAG Fund - - 345 345 -
25,662 - 643 26,305 19,564
General funds - 14,895 (9,747) 5,148 12,811
25,662 14,895 (9,104) 31,453 32,375
Restricted - 1,603 846 2,449 2,757
Endowment - 11,052 1,568 12,620 11,738
Total 25,662 27,550 (6,690) 46,522 46,870

69

Notes to the financial statements continued

23 Trading subsidiary – The RCP Regent’s Park Limited The trading results and balance sheet of the RCP subsidiary company as extracted from its audited accounts are set out below.

The tradingresults and balance sheet of the RCP subsidiarycompanyas extracted from its audited accounts are set out below. The tradingresults and balance sheet of the RCP subsidiarycompanyas extracted from its audited accounts are set out below. The tradingresults and balance sheet of the RCP subsidiarycompanyas extracted from its audited accounts are set out below.
2023
2022
Profit and loss account £000
£000
Turnover 5,979
4,661
Cost of sales (1,901)
(1,320)
Grossprofit 4,078
3,341
Administrative expenses (3,420)
(2,393)
Operating profit/(loss) 658
948
Gift aid to Royal College of Physicians
(658)
(831)
Retainedprofit/(loss) for the financialyear
-
117
Included within administrative expenses is £3,326k(2022: £2,329k),which represents a reimbursement in respect of costs incurred bythe RCP.
2023
2022
Balance sheet £000
£000
Debtors 314
325
Balance at bank 1,307
2,226
Current and total assets 1,621
2,551
Creditors due within 1year: (914)
(1,082)
Creditors due more than 1year: -
-
Creditor – due to RCP (707)
(1,469)
Total creditors (1,621)
(2,551)
Net assets -
-
Capital and reserves
Accumulated deficit -
-
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 profit for the year ended 31 December 2023 was £658k (2022: £948k).

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.

70

Notes to the financial statements continued

24 Pension schemes

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 and Aon. 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.

Total pension costs charged for the year was net income £26k (2022: £6k) for the defined benefit pension scheme and employer pension contributions of £1,299k (2022: £1,208k) for the defined contribution pension scheme.

One of the defined contribution schemes 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 2023 by a qualified actuary. The 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.

The valuation, details of which are given below, shows £17.05 million of assets and £16.23 million of liabilities, resulting in a scheme surplus of £826k. However, in accordance with paragraph 28.22 of FRS 102 the net pension asset has been restricted to the value of the scheme’s future pension cost less future employee contributions. The net pension asset therefore becomes £nil.

The scheme’s assets and liabilities as at 31 December 2023, analysis of pension costs and details of the valuation were as follows:

Principal assumptions 2023 2022 2021 2020 2019
%per annum %per annum %per annum %per annum %per annum
Discount rate 4.55 4.80 1.85 1.30 2.00
Aggregate long-term expected rate of return on assets 4.55 4.80 1.85 1.30 2.00
Rate of increase of salaries n/a n/a n/a n/a n/a
RPI inflation assumption forpensions inpayment 2.95 3.00 3.25 2.75 3.00
CPI inflation assumption for deferredpensions 2.40 2.45 2.65 2.15 2.00
Pension increases 2.90 2.95 3.15 2.75 2.95
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

71

Notes to the financial statements continued

Mortality tables: 101% of S3PMA tables for men and 92% of S3PFA tables for women using CMI 2022 model with a 1.25% long-term rate of improvement based on year of birth.

The assets valued below are in the form of monies invested with Legal and General Investment Management, BMO Global Asset Management, M&G Investments and Janus Henderson Investors together with the trustees’ bank account. The assets in the scheme and the expected rate of return were:

Assets breakdown
2023
2022		 Assets breakdown
2023
2022
%
%
Real return and absolute return funds
-
-
Diversified Growth Fund
-
-
UK Government index-linkedgilts
61.77
-
Corporate bonds
-
-
Multi asset credit
17.75
39.13
UK corporate bonds
13.51
11.24
Liabilitydriven investments
-
20.99
Equities
5.11
12.72
Cash
1.86
15.92
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
2023		 2022
£000 £000
Pension scheme liabilityat the beginningof theyear
-		 (386)
Actuarial losses andgains onpresent value of obligations
(101)		 7,732
Experiencegains and losses on defined benefit obligations
(598)		 (1,199)
Gains/(losses)on return of scheme assets
(289)		 (6,901)
Employer contributions
1,120		 1,385
Net interest on the net defined benefit liability
26		 6
158 637
2023
2022
£000 £000
Present value of scheme liabilities at beginningof theyear
15,445		 22,342
Interest cost
726		 406
Actuarial(loss)/gain on scheme liabilityassumption changes
699		 (6,533)
Benefitspaid
(645)		 (770)
Present value of scheme liabilities at the end of theyear
16,225		 15,445

72

Notes to the financial statements continued

Movement in deficit during the year
2023		 2022
£000 £000
Fair value of scheme assets at beginningof theyear
16,082		 21,956
Interest income
783		 412
Return on scheme assets
(289)		 (6,901)
Employer contributions
1,120		 1,385
Benefitspaid
(645)		 (770)
Fair value of scheme assets at the end of theyear
17,051		 16,082
2023
2022
£000 £000
Fair value of scheme assets
17,051		 16,082
Value of liabilities(defined benefit obligation)
(16,225)		 (15,445)
Funded status
826		 637
Adjustment in accordance with the limit in FRS 102
paragraph 28.22
(826)
(637)
Recognisedpension scheme liability
-		 -
Analysis of pension scheme assets and liabilities for the current and previous five financial periods 2023 2022 2021 2020 2019 2018
£000 £000 £000 £000 £000 £000
Present value of scheme liability (16,225) (15,445) (22,342) (24,526) (22,482) (19,966)
Fair value of scheme assets 17,051 16,082 21,956 20,287 18,239 16,988
Surplus/(Deficit) 826 637 (386) (4,239) (4,243) (2,978)
Adjustment in accordance with the limit in FRS 102paragraph 28.22 (826) (637) - - - -
Surplus/(Deficit) - - (386) (4,239) (4,243) (2,978)

At the date of the last triennial statutory actuarial assessment as at 1 January 2021, the market value of the scheme was £22.35 million and the actuarial value of those assets represented 75.5% of the value of the benefits which had accrued at that date, allowing for future pension increases.

73

Notes to the financial statements continued

25 Lease obligations 2023 2022
£000 £000
Operating leases on land and buildings, by expiry date:
Under 1year 16 25
1 to 5years 2,475 1,254
5yearsplus 25,095 26,328
Total future minimum operating lease commitments 27,586 27,607
Operating leases on office equipment and computers, by expiry date:
Under 1year 100 105
1 to 5years 111 230
5yearsplus - -
Total future minimum operating lease commitments 211 335
Finance leases on IT equipment, by expiry date:
Under 1year 88 91
1 to 5years 23 113
5yearsplus - -
Total future finance lease commitments 111 204
Finance leases on land and buildings, by expiry date:
Under 1year 108 100
1 to 5years 158 258
5yearsplus - -
Total future minimum finance lease commitments 266 358

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.

26 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. The total transactions in the year from the RCP Regent’s Park Limited to the college totalled £762k with the company as at 31 December 2023 owing the RCP £707k in relation to an inter-company balance. Donations totalling £933 (2022: £2,133) were received from three trustees in the year (2022: 4). There were no other related party transactions in the period.

74

Awards, fellowships and donors

Awards, prizes and lectures

Croonian lecture Professor Jane Davies

FitzPatrick lecture

Professor Helen Lachmann

Fix IT in Healthcare prize

My Clinical Outcomes team – Dr Ollie Minton, Rob Herriot, Tim Williams

Qureshi lecture

Professor Johann Sebastian de Bono

Samuel Gee lecture Professor David Sanders

RCP-NIHR Clinical Research Network awards

Aaron Bancil Kieran McCafferty Peter Scanlon Oscar Swift

James Maxwell Grant Prophit fellowship Dr Stephen Large

John Glyn Bursary

Dr Ben Faber Dr Puja Mehta

Samuel Leonard Simpson fellowship in endocrinology Dr Melanie Nana

Graham Bull Prize and Goulstonian

lectureship Dr Stephen John Sammut

Harveian orator

Sir Patrick Vallance

Lady Estelle Wolfson lecture in translational medicine Dr Nimzing Ladep

Linacre lecture

Dr Shivan Sivakumar

Milroy lecture Dr Barry Monk

Moxon medal Professor Edel O’Toole

President’s award

Teale essay prize for trainees Dr Fraser Brown

Fellowships and bursaries

RCP medical student elective bursaries

Adanna Ewuzie Aishah Hagan-Bezgin Anish Ray Catherine Napper Eleaha Saiady Jamie Richards Lucy Richman Luke Solomi Niraj Doshi Rogan Dean Ruth Foulsham Yasmin Cabdi

Fellowship admissions

New fellows

578 elected under bye-law 8.2 (1) a 6 elected under bye-law 8.2 (1) b 398 elected under bye-law 8.2 (1) c 3 elected under bye-law 8.6 (1)

New honorary fellows

Jane Knowles Professor Matthew Ashton Professor Dame Caroline MacEwen

Dr Bryan Williams

75

RCP annual report 2023

Major donors for 2023

The Amateurs Trust Art Fund AstraZeneca UK Becton Dickinson BMS Boehringer Ingelheim CAE Healthcare Christine Towner Daiichi Sankyo Dr Alfred Frankland EUSA Pharma Miss Florence Green GSK Illumina Jerwood Foundation Lord Leverhulme’s Charitable Trust Lilly Moderna Modiano Charitable Trust Novartis Dr Henry Oakeley Dr Mary Peard Pfizer Dr Sarfraz Qureshi Rosetrees Trust Tay Charitable Trust Tru Vue Inc. Professor Harold Thimbleby Dr Olwen Williams OBE The Lord Leonard and Lady Estelle Wolfson Foundation

The Wolfson Foundation Vertex Rue and John Ziegler

Our sponsors

The following corporate partners supported our work in 2023: AstraZeneca Becton Dickinson BMS Boehringer Ingelheim CAE Healthcare Daiichi Sankyo GSK Lilly EUSA Pharma Illumina Moderna Novartis Pfizer St James’s Place Vertex Wesleyan

76

RCP annual report 2023

Administrative information

Principal address

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

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

Auditor

Principal advisers

Solicitors

Fieldfisher LLP Riverbank House 2 Swan Lane London EC4R 3TT

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

Investment managers

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

Cazenove Capital Management 12 Moorgate London EC2R 6DA

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

Royal Bank of Canada 1 Place Ville Marie 12th floor Suite 1240 Montréal Quebec H3B 4P5 Canada

77

RCP annual report 2023

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

www.rcp.ac.uk

The Spine 2 Paddington Village Liverpool L7 3FA

43

RCP annual report 2023