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2021-12-31-accounts

Trustees’ report and financial statements for the year ended 31 December 2021

July 2022

Contents

1 Trustees’ report 3
Reference and administrative details of the
college, its trustees and advisers for the year
ended 31 December 2021 3
Structure, governance and management 4
Objects and activities 6
Achievements and performance 7
Financial report 9
Responsibilities of the trustees 15
2 Independent auditor’s report to the Members of
The Royal College of Radiologists 17
3 Statement of fnancial activities 21
4 Balance sheet 22
5 Statement of cash fows 23
6 Notes to the fnancial statements for the year
ended 31 December 2021 24

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1 Trustees’ report

Reference and administrative details of the college, its trustees and advisers for the year ended 31 December 2021

Ofcers Dr J Dickson, President
Dr J Elford, Treasurer
Dr W H Ramsden, Dean, Clinical Radiology
Dr H Tharmalingam, Dean, Clinical Oncology
Dr S P Harden, Warden, Clinical Radiology
Dr R Cooper, Warden, Clinical Oncology
Dr Raman Uberoi, Registrar, Clinical Radiology+
Prof M Callaway, Registrar, Clinical Radiology*
Dr Nicky Thorp, Registrar, Clinical Oncology+
Dr T W Roques, Registrar, Clinical Oncology*
* to 31 August 2021 +from 01 September 2021
Charity number 211540
Registered ofce 63 Lincoln’s Inn Fields
and address London WC2A 3JW
Key management roles O Reichardt, Chief Executive
JR Booth, Executive Director and Deputy Chief
Executive (to 22 Feb 2021)
DA Botha, Executive Director
TE Vanburen, Executive Director and Deputy Chief
Executive (from 1 September 2021)
G Malley, Executive Director (from 22 Feb 2021)
Independent auditor Crowe UK LLP
55 Ludgate Hill
London EC4M 7JW
Bankers National Westminster Bank
PO Box 2021
10 Marylebone High Street
London W1A 1FH
Solicitors Shoosmiths
Witan Gate House
500–600 Witan Gate West
Milton Keynes MK9 1SH
Investment managers Sarasin & Partners LLP
Juxon House
100 St Paul’s Churchyard
London EC4M 8BU

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The trustees present their report and the audited financial statements for the year ended 31 December 2021. Reference and administrative information set out on pages 4–8 forms part of this report. The financial statements comply with current statutory requirements, the Royal Charter and By-laws of the RCR and the Statement of Recommended Practice – Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Structure, governance and management

Council is the governing body of the RCR made up of 18 trustees and four co-opted members.

The trustees of the RCR are the elected Officers (President, Deans, Wardens and Registrars) and the Treasurer who is appointed and five elected UK Fellows from each faculty. Eligibility requirements and electoral arrangements for all elected positions are set out in the By-laws and Regulations.

The four co-opted members of Council include: the respective chairs of the RCR’s Junior Radiologists’ Forum and Oncology Registrars’ Forum and two lay members. The lay members are appointed following advertisement and an interview process and serve on Council and on each Faculty Board for three years.

Council is responsible for the governance of the RCR consistent with the objects defined in the Royal Charter. Council sets the strategy for the RCR and delegates the decisions on and implementation of specialty-specific policy to the appropriate Faculty. Each Faculty is led by a team of Officers headed by the Dean and is charged under the constitution with developing its specialty. The Faculties are responsible to Council for managing the affairs of their Faculty through the boards and committees.

Induction

The annual induction of trustees comprises an interactive training session at the initial Council meeting of the College year. This is supported by the provision of appropriate documents including: the Charity Commission’s The Essential Trustee: what you need to know (CC3); guidance on charitable purposes and public benefit; a copy of the RCR Charter,

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By-laws and Regulations; the most recent Annual Review; information on RCR structures; the travel and expenses policy; the RCR Strategic Priorities; and the Compact.

Council members are required to complete or update their entry in a mandatory Register of Interests.

In addition, the Officers have a tailored induction programme before the start of the College year and access to leadership training and coaching programmes throughout their term of office.

Board structure

Each Faculty is led by a Faculty Board to which reports a Specialty Training Board and a Professional Support and Standards Board. Other committees and working groups are used from time to time.

The Finance and Investment Committee (FAIC) is responsible on behalf of Council for ensuring that resource and business planning and delivery for the RCR supports and enables achievement of the RCR Strategic Priorities. FAIC is led by the Treasurer and includes two lay members with expertise in business planning, risk management and performance.

Senior leadership teams comprising the Officers of each Faculty and senior staff provide operational leadership of the RCR. These three teams are focused on clinical oncology activities, clinical radiology activities and RCR-wide activities. The staff of the RCR, headed by the Chief Executive, support, advise and report to Officers, Council, the boards and committees.

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Objects and activities

The objects of the RCR are to advance the science and practice of clinical radiology and clinical oncology, as stated in its Royal Charter. Clinical oncologists are medical specialists skilled in cancer treatment with radiotherapy, chemotherapy and other systemic therapies. Clinical radiologists are medical specialists who inform the detection, diagnosis and management of disease through use of imaging techniques. Radiologists also use minimally invasive methods to treat disease.

The RCR has over 12,400 Fellows and members worldwide in the disciplines of clinical oncology and clinical radiology. The very great majority are registered medical or dental practitioners. About one quarter of the total membership is based outside the UK.

Council’s focus on delivering public benefit is through the work of the RCR in and for the specialties of clinical radiology and clinical oncology in the interest of and for the benefit of patients and the wider public. This includes:

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Most RCR publications are available free of charge on its website. As a charity, the RCR is independent of the state and not part of the National Health Service in any of the four UK nations.

Achievements and performance

2021 continued to be a challenging year with operational plans being affected by the impact of COVID-19. However, RCR continued to press ahead with progress and accomplishments against its strategic priorities.

1. Workforce

Supporting excellent, safe patient care by collaborating on team-wide standards across imaging and oncology.

2. Be the experts

Highlighting the contribution our specialties make to safe, evidence-based and costeffective patient care.

Expert guidance across the sector and for our members is a high priority for the RCR. During 2021 we:

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3. Professional learning

Supporting our doctors to meet the challenges of practice, through high-quality products built on evolving educational models.

Ensuring that our members keep their knowledge and skills up to date is critical for the RCR. In 2021 we:

4. Membership value

Supporting our Fellows and members to deliver the best care for patients throughout their career, regardless of where or how they practice.

The RCR supports its members to ensure that they are informed, engaged and their concerns championed. In 2021, we:

5. Our college

Shaping our College to be demonstrably agile and responsive, accountable and open, supporting our specialties and the patients we treat.

We have:

2022 and beyond

Looking to the future, the RCR remains focused on our strategic priorities of workforce, being the expert, learning, value for members and shaping the RCR of the future. The investments we’ve made throughout 2021 have helped us to further improve delivery against these priorities and meet the needs of our members. We have continued this investment in 2022 and look forward to seeing additional achievements in these areas.

Dr J Dickson , President

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Financial report

Risk management

Council holds ultimate responsibility for the management of risk but delegates the oversight of risk management strategy and process to the Finance and Investment Committee (FAIC). The Senior Leadership team identifies and manages the strategic risks, and the Senior Management team manages the strategic and operational risks day-to-day through programmes focused on income diversification, business process improvement and the application of new technology. FAIC oversees these activities, scrutinises the risk register and advises these teams and Council accordingly.

Council has reviewed the risks and has identified these as the most significant threats to delivery of RCR’s strategic aims:

Risk Mitigation The long-term effect of the pandemic We continue to promote and monitor on the availability and appetite of our UK wellbeing across all staff and doctor doctors for participating in RCR’s work resources and seek to ensure the is uncertain. This may lead to changes relationship and arrangements for in the nature of the relationships and engaging doctors meets their long-term arrangements that RCR operates to plan needs.

The long-term effect of the pandemic on the availability and appetite of our UK doctors for participating in RCR’s work is uncertain. This may lead to changes in the nature of the relationships and arrangements that RCR operates to plan and deliver our strategic priorities.

We have identified the major vulnerabilities in our infrastructure and have either updated or plan to replace those components that cause the risk. In 2022 we have undertaken a thorough independent review of our cyber risk and will act on the findings.

The College is exposed to an increase in cyber threats, which risks compromising access to, or the quality of, our data, operations and communications.

Constraints inherent in the governance structure hamper our ability or agility to anticipate or meet the evolving needs of our members.

A governance working party is reestablished to work through the issues and potential changes. Council will consider the findings.

Unmet overseas demand for exams discourages candidates from seeking FRCR and encourages commitments to alternatives.

We are building exams capacity in the UK and internationally to increase the number of opportunities available.

We are developing new models of examinations to accommodate demand and make it easier for candidates to participate.

An increased global focus from RCR improves our communication at local level.

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Shortage of national training numbers,
coupled with increasing anticipated
retirements leads to a drop in membership
numbers, income and capacity.		 We have expanded our campaign
for workforce improvements
adding additional resources to our
communications and policy area.
We will continue to contribute to NHS and
government plans and policy.
We will increase our membership
overseas.
Failure to engage all fnancial resources We have given clear guidance for trustees
may slow pace or scope of College work. on the funds available for charitable
investment.
We have a policy for minimum reserves
levels necessary for fnancial security.
We have a planned increase of the
number of meetings at Senior Leadership
team on fnancial matters.

Going concern

The accounts are prepared based on RCR being a going concern. Council assesses the financial circumstances and outlook for the College and takes the advice of the Finance and Investment Committee (FAIC) when considering the accounts.

FAIC regularly scrutinise financial management and performance information and provide advice to Council on the statutory accounts, budgets and reserves policies. This information includes:

Confidence in going concern

Council has considered and accepted the advice and recommendation of FAIC who, after scrutinising the financial reports and resources of the College, have recommended approval of the accounts on the basis of going concern.

The main points considered by FAIC in their recommendation to Council are that:

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Impact of COVID-19

The pandemic and social distancing restrictions continued to affect the College’s planned activities for 2021 in the UK and overseas. As a result, we regularly revised the timing and delivery plans for exams, delivering less than our aspirational candidate places but 50% more than in 2020; and continued to deliver most professional learning activities online with face-to-face events only taking place in the final quarter. Our admissions ceremonies were held virtually, we significantly reduced travel into the College for meetings and in the end only opened as a staff workplace for three months in 2021.

The cost of delivery of our exams was materially higher than for 2020 because we bore the costs of social distancing requirements including larger or multiple venues to achieve candidate spacing requirements and so requiring a greater number of invigilators as well. The continued virtual engagement with members saved material sums in 2021 and enable us to achieve our budgeted outcome.

We increased working capital through a £900k CBILS in March 2021 and set out and implemented a working capital improvement strategy involving the phased sale of investment properties from June 2021.

Policies

Employee remuneration policy

The College carries out regular remuneration reviews to ensure employee remuneration is competitive in the market and that we can recruit and retain high quality staff. The College operates a pay progression structure that links pay progression to the achievement of objectives, learning and development expectations and core competencies.

The Remuneration Committee exercises responsibility on behalf of Council for the review of the remuneration of Key Management Personnel and any remuneration of Fellows.

In 2021, the College implemented changes to pay that would achieve a 2.9% reduction in salary costs in 2021 including reductions in some benefits and pay increases for the lowest paid staff of 0.5% to 1.5%. A pension salary sacrifice scheme was adopted from 1 January 2021 that minimised the effect of the reductions on staff take home pay and increased pension contributions without increased cost for the College.

Ethical and sustainable investment policy

The College operates an ethical investment policy that shows a commitment to sustainable investments that are consistent with the Paris Climate Accord goals of limiting the average global temperature rise by 2050 to 1.5°C. It also excludes companies whose principal purpose is in tobacco, armaments, alcohol, gambling, pornography, extraction and production of thermal coal and tar sands. As a result of this policy, RCR does not invest in companies that undertake fossil fuel extraction.

The College uses the Sarasin Climate Active Endowment fund that takes a strong stance on ethical and social stewardship matters. As well as ethical screening, the fund positively

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screens companies that demonstrate commitment to the Paris Climate Accord goals. The trustees are content that this positive screening approach is an effective way of demonstrating the RCR’s support for climate change initiatives.

Within the ethical parameters, the objectives of the investment policy are to maximise total returns via growth in capital and income to enable the College to carry out its purposes consistently year by year with due and proper consideration for future needs. The College expects the invested funds to match or exceed the portfolio benchmark return and has a moderate risk appetite.

The College agreed a total returns policy in 2021 to fix the income return to 4% of fund value. The College reviews this policy annually and it will apply for 2022 as well.

In 2021, the portfolio provided a one year return of 10.8% against the fund objective of 9.1%. Returns over five years were 9.3% against the objective of 6.5%.

Environmental policy

RCR recognises that its operations can have a harmful effect on the local and global environment and that these effects will adversely impact global health issues and health inequality. RCR commits to reducing the long-term environmental impact of RCR’s operations.

Since 2020 RCR has made changes to its suppliers and ways of working that have resulted in a significant reduction in its carbon footprint for scope 1 and 2 activities from its 2019 benchmark 108 tonnes CO2e annually to almost nil in 2021. The details of this programme and its achievements are here. We plan to certify these savings in 2022 and extend our reporting to include scope 3 activities and develop a strategy aimed at achieving net zero.

RCR aims to reduce:

Reserves policy

The RCR has a policy to have sufficient general reserves to fund five months of operating expenses to cover the financial implications of a significant and permanent reduction in income and managing a controlled contraction of the business to sustainable levels.

Council have considered the advice of FAIC on the reserves policy and agree that the free general reserves are more than sufficient to meet the College’s foreseeable needs and that the policy requirements are satisfied.

The College retains £4.4m of free reserves with an additional £3.7m set aside by policy.

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Financial review

The results for the year are set out in the statements on pages 21 to 23.

Summary of results

RCR saw a strong recovery from 2020 with significant growth in areas previously affected by COVID as well as underlying growth. The COVID recovery came at a cost which, coupled with investment in new capabilities and capacity, led to a small loss on charitable activities in the year, but within expectations.

Income grew £1.4m to £7.8m (2020: £6.4m) driven by a £0.9m partial recovery of exams and professional learning activity, that had been significantly affected by COVID in 2020 (figure A). There was also £0.7m of underlying growth including membership subscriptions and investment income. 2020 income was inflated by non-repeating contributions totalling of £0.2m by the one-off receipt of Cyclotron trust funds and furlough grants. Restricted income rose £0.1m from new grants received in 2021.

We increased the number of exam candidate places to over 4,400, up 50% (2020: 3,029), and expanding into delivering in India in Q4. The cost of delivering the exams grew significantly from absorbing costs of larger venues and more invigilators to meet social distancing requirements. Our professional learning business grew by over 50% but remains well below historic levels due to fewer face to face events. However, participation in professional learning activities reached historic highs with strong interest in webinars and our RCR Learning programme in the autumn. Membership income rose steadily to £4.3m from a 690 increase in subscribers to over 12,000 by end of December. iRefer royalty and subscription income also rose to £500k.

Charitable expenditure grew £1.6m to £9.0m (2020: £7.4m) including £0.9m from costs of ensuring safe and compliant examinations for candidates and £0.6m of inward investment in developing additional functions and projects to build capacity for income growth.

Recruitment to new functions and projects increased headcount to 85 by the end of the year and staffing costs rose by £0.4m. We expect headcount to increase to 93 during 2022 completing that investment phase.

Depreciation costs rose £0.2m on prior year from capital projects in 2020 and 2021 capital projects. 2020 costs included £0.2m of one-off activity not repeated in 2021. Restricted and other spend rose £0.2m.

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Overall charitable activities incurred a £1.2m loss (2020: £1.0m) which was entirely offset by growth in our investments in property and our portfolio (up £1.5m, 2020: up £0.7m). This change led to reserves ending at £30.4m (2020: £30.2m); £0.3m greater than the prior year.

Unrestricted reserves closed at £27.5m, up £1.4m on the prior year due to reclassification between reserves.

Other reserves

Restricted reserves

Total restricted reserves were £2.9m (2020: £4.1m), the largest components being:

RCR received income from grants (£131k), dividends (£74k) and the Education funds benefits from a pro rata share of growth in investments (£296k). RCR spent £203k in 2021 (2020: £70k). There was a transfer of £1.5m into unrestricted funds as part of the restructure of Education funds, described below.

Education funds

After consultation with the Charity Commission, trustees have restructured the Education funds, a collection of 29 restricted funds curated to promote education in the specialties, to reform the purposes of these funds for charitable purposes. The trustees agreed to consolidate the restricted funds into four funds around themes of prizes, lectures, research grants and a new education fund with broader purposes. This restructure also identified a historic reporting error for nine of the funds allowing them to be correctly classified as unrestricted funds. These nine funds have been consolidated into two designated funds: for research and education. All changes are effective at the end of 2021. The restructure has given RCR a more significant capability and flexibility to apply these funds to its work and we are aligning the use of these funds with our charitable activities where appropriate. The Education funds are valued at £2.4m (£3.4m).

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Research funds

The College invites applications for its research grant schemes annually and makes awards based on scientific merit. Grants are to foster research into medical imaging (clinical radiology) and the investigation and treatment of cancer (clinical oncology).

The College has allocated £1.4m of restricted and unrestricted funds towards future research grants for clinical radiology (£0.9m, unrestricted) and clinical oncology (£0.5m, restricted) to cover the next 7–10 years of demand. This includes the residual funds set aside from the CO and CR Research funds created in 2013. In 2021, RCR awarded £80k in grants (2020: £83k).

Other designated funds

The College retains £1.1m of unrestricted funds designated towards:

Tangible fixed assets

The College has not recognised any impairment in the value of the office building at 63 Lincoln’s Inn Fields as the building is held for the long term and is occupied by the College and not rented out. The property is depreciated over 50 years. The next revaluation will be in 2023.

The RCR had no fundraising activities requiring disclosure under S162A of the Charities Act 2011.

Responsibilities of the trustees

The trustees are responsible for preparing the report of the trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the College and of the incoming resources and application of resources of the RCR for that period. In preparing these financial statements, the trustees are required to:

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The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the RCR and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities SORP (FRS 102) and the provisions of the Royal Charter and By Laws. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. They are also responsible for safeguarding the assets of the RCR and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the RCR and financial information included on the RCR’s website.

The trustees

Members of the Council who served as charity trustees during the year and up to the date of this report were as follows:

Ex officio members of Council and trustees

----- Start of picture text -----
From 1 Jan 2021 to 31 Aug 2021 From 1 Sep 2021 to 31 Dec 2021
Dr J Dickson , President Dr J Dickson , President
Dr J Elford , Treasurer Dr J Elford , Treasurer
Dr W H Ramsden, Dean, Clinical Dr W H Ramsden, Dean, Clinical
Radiology Radiology
Dr H Tharmalingam , Dean, Clinical Dr H Tharmalingam , Dean, Clinical
Oncology Oncology
Dr S P Harden , Warden, Clinical Radiology Dr S P Harden , Warden, Clinical Radiology
Dr R Cooper, Warden, Clinical Oncology Dr R Cooper, Warden, Clinical Oncology
Prof M P Callaway, Registrar, Clinical Dr R Uberoi, Registrar, Clinical Radiology
Radiology
Dr T Roques, Registrar, Clinical Oncology Dr N Thorp, Registrar, Clinical Oncology
----- End of picture text -----

Elected members of Council and trustees

----- Start of picture text -----
From 1 Jan 2021 to 31 Aug 2021 From 1 Sep 2021 to 31 Dec 2021
Dr A K Bahl Dr J A Holemans Dr A K Bahl Dr J A Holemans
Dr M J Rolles Dr N J Screaton Dr M J Rolles Dr N J Screaton
Dr J H Miller Dr C A Coyle Dr J H Miller Dr C A Coyle
Dr P Kirkbride Dr J E M Cox Dr E Loney Dr S Sundar
Dr A Taylor Dr J Q Gildersleve Dr A Taylor Dr J Q Gildersleve
----- End of picture text -----

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Non-trustee co-opted members of Council

From 1 Jan 2021 to 31 Aug 2021 From 1 Sep 2021 to 31 Dec 2021
Ms J Ord, Lay member Ms J Ord, Lay member
Mr T Jones, Lay member Mr T Jones, Lay member
Dr S Fossey, Junior Radiologists’ Forum
representative		 Dr F Rathore, Junior Radiologists’ Forum
representative
Dr S Hindocha, Oncology Registrars’ Dr S Hindocha, Oncology Registrars’
Forum representative Forum representative

The trustees and other Council members have no beneficial interest in the RCR.

Auditors

Crowe UK LLP were reappointed as the charity’s auditors during the year and have expressed their willingness to continue in that capacity.

The report of the trustees has been approved by the trustees on 1 July 2022 and signed on their behalf by:

Dr J Dickson Dr J Elford President Treasurer

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Independent auditor’s report to the Members of The Royal College of Radiologists

Opinion

We have audited the financial statements of the Royal College of Radiologists (‘the charity’) for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flows 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:

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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 charity 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 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 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:

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Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement (set out in page 14), 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 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. 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 operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011. 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 ability to operate or to avoid a material penalty. We also considered the

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opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation, Health and Safety legislation, Taxation legislation and employment legislation.

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

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance and Investment Committee 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 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 non-detection 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 UK LLP

Statutory Auditor 55 Ludgate Hill London EC4M 7JW

Date: 11 October 2022

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3

Statement of financial activities

The Statement of financial activities includes all gains and losses recognised in the year. The notes on pages 24 to 45 form part of these financial statements.

----- Start of picture text -----
Endowment Restricted Unrestricted Total funds Total funds
funds 2021 funds 2021 funds 2021 2021 2020
Note £ £ £ £ £
Income and
endowments from:
Donations and 4
legacies - 11,373 - 11,373 1,500
Charitable activities 5 - 122,228 7,203,931 7,326,159 5,679,595
Investments 6 - 71,757 381,495 453,252 644,224
Other income 7 - - 6,709 6,709 38,271
Total income and
endowments - 205,358 7,592,135 7,797,493 6,363,590
Expenditure on:
Charitable activities 8 2,100 205,442 8,782,870 8,990,412 7,405,806
Total expenditure 2,100 205,442 8,782,870 8,990,412 7,405,806
Gains/(losses) on
revaluation of fixed
assets - 605,000 605,000 -
Gains/(losses) on 15
investments 296,958 566,922 863,880 691,353
Transfers (151,128) (1,271,248) 1,422,376 - -
Net movement in
funds (153,228) (974,374) 1,403,563 275,961 (350,863)
Reconciliation of
funds:
Total funds brought
forward 153,228 3,904,998 26,094,981 30,153,207 30,504,070
Net movement in
funds (153,228) (974,374) 1,403,563 275,961 (350,863)
Total funds carried
forward - 2,930,624 27,498,544 30,429,168 30,153,207
----- End of picture text -----

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4

The notes on pages 24 to 45 form part of these financial statements.

Balance sheet

----- Start of picture text -----
2021 2020
Note £ £
Fixed assets
Intangible assets 12 1,324,265 922,898
Tangible assets 13 15,457,415 15,443,971
Investments 15 11,718,520 10,998,639
Investment property 14 4,005,000 3,400,000
32,505,200 30,765,508
Current assets
Debtors 16 495,822 629,671
Cash at bank and in hand 22 1,502,643 1,169,604
1,998,465 1,799,275
Creditors: amounts falling 17 (3,284,497) (2,411,576)
due within one year
Net current assets (1,286,032) (612,301)
Creditors: amounts falling 18 (790,000)
due more than one year
Total net assets 30,429,168 30,153,207
Charity funds
Endowment funds 19 - 153,228
Restricted funds 19 2,930,624 3,904,998
Unrestricted funds 19 27,498,544 26,094,981
Total funds 30,429,168 30,153,207
----- End of picture text -----

The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

Dr J Dickson President Date: 1 July 2022

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5 Statement of cash flows

The notes on pages 24 to 45 form part of these financial statements.

----- Start of picture text -----
2021 2020
£ £
Cash flows from operating activities
Net cash used in operating activities (163,296) (1,631,812)
Cash flows from investing activities
Dividends, interests and rents from investments 391,442 644,224
- -
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets (363,279) (239,800)
Purchase of intangible fixed assets (575,828) (489,330)
Purchase of investments - (152,427)
Sale of investments 144,000 499,000
Net cash used in investing activities (403,665) 261,667
CBIL Loan 900,000 -
-
Net cash used from financing activities 900,000
Change in cash and cash equivalents in the year 333,039 (1,370,145)
Cash and cash equivalents at the beginning of the year 1,169,604 2,539,749
Cash and cash equivalents at the end of the year 1,502,643 1,169,604
----- End of picture text -----

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6

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

1. General information

The Royal College of Radiologists is a Public Benefit Entity registered as a charity in England and Wales (charity number: 211540) and a Royal Charter company (RC000854). Its registered office is 63 Lincoln’s Inn Fields, London, WC2A 3JW.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) – Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

2.2 Going concern

The trustees consider that there are no material uncertainties about the College’s ability to continue as a going concern.

2.3 Income

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

Subscriptions are included on a receivable basis. Income is deferred for the proportion of the 2020/21 subscriptions applicable to the College’s accounting period to 31 December 2021.

Voluntary income is received by way of donations and gifts and is included in full in the statement of financial activities and is recognised on receipt or when entitlement to receipt is probable.

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

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

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.

Expenditure on charitable activities includes the costs of delivering services to members, examinations, training, and other educational activities undertaken to further the purposes of the College and the associated support costs.

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

Allocation of support costs

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

following basis which is an estimate, based on
activity.		 staf time,
Examinations 23%
Specialty training 12%
Professional Learning and Development 13%
Professional practice 27%
Communications 20%
Membership 5%

2.5 Intangible assets and amortisation

Intangible assets are stated at cost, less accumulated amortisation. Intangible assets costing more than £500 are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Intangible fixed assets are initially recognised at cost. After recognition, under the cost model, intangible fixed assets are measured at cost less accumulated amortisation. All costs incurred to bring an intangible fixed asset into its intended working condition should be included in the measurement of cost.

The intangible assets capitalised during the year are under construction and not in use, therefore no amortisation has been charged in the period.

2.6 Tangible fixed assets and depreciation

Individual tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

In accordance with FRS102 freehold land is not depreciated. Depreciation is charged on freehold buildings over 50 years on a straight-line basis. Freehold land and buildings are initially recognised at cost but are subject to periodic revaluation by the trustees on a 5-year cycle. The next valuation will be in 2023.

The estimated useful lives are as follows:

Building infrastructure 10 years
Membership Database 7 years
Intangible Assets 4 years
Furniture 5 years
Computers 3–5 years

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2.7 Investment properties

Investment properties are measured initially at cost and subsequently included in the balance sheet at fair value. Investment properties are not depreciated. The valuation method used to determine fair value will be stated in the notes to the financial statements.

2.8 Investments

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

2.9 Debtors

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

2.10 Cash at bank and in hand

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

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date because of a past event, it is probable that a transfer of economic benefit will be required in settlement and the amount of the settlement can be estimated reliably.

2.12 Financial instruments

The College has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash and bank and in hand, together with trade and other debtors. Financial liabilities held at amortised cost comprise bank loans and overdrafts, trade and other creditors.

Investments, including bonds held as part of an investment portfolio are held at fair value at the Balance Sheet date, with gains and losses being recognised within income and expenditure. Investments in subsidiary undertakings are held at cost less impairment.

2.13 Operating leases

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

2.14 Pensions

The College operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the College in an independently administered fund. The pension cost charge represents contributions payable under the scheme by

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the College to the fund. The College has no liability under the scheme other than for the payment of those contributions.

2.15 Fund accounting

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

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

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

3. Critical accounting estimates and areas of judgement

Trustees are required to make judgements, estimates, and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods.

Critical accounting estimates and assumptions:

Valuation of land and buildings and investment properties – The Colleges land, buildings and investment properties are stated at their estimated fair value based on management estimates as disclosed in note 13.

4. Income from donations and legacies

Restricted
funds 2021		 Restricted
funds 2020
£ £
Donations
Roentgen Professorship 7,873 -
David Skeggs Lecture 1,500 1,500
Dr Norman Howard 2,000
11,373 1,500

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5. Income from charitable activities

----- Start of picture text -----
Restricted Unrestricted Total funds
funds 2021 funds 2021 2021
£ £ £
-
Membership Subscriptions 4,255,879 4,255,879
Examination Fees - 1,624,089 1,624,089
-
Delegate Fees 300,605 300,605
Sponsorship 122,754 42,540 165,294
-
Royalties & Publications 715,064 715,064
Service Fees (526) 265,754 265,228
Total 2021 122,228 7,203,931 7,326,159
----- End of picture text -----

----- Start of picture text -----
Restricted Unrestricted Total funds
funds 2020 funds 2020 2020
£ £ £
Membership Subscriptions 3,819,714 3,819,714
Examination Fees 942,816 942,816
Delegate Fees 199,592 199,592
Sponsorship 20,000 24,600 44,600
Royalties & Publications 587,583 587,583
Service Fees 18,147 67,143 85,290
Total 2020 38,147 5,641,448 5,679,595
----- End of picture text -----

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6. Investment income

----- Start of picture text -----
Restricted Unrestricted Total 2021
funds 2021 funds 2021
£ £ £
-
Properties income – Rent 91,866 91,866
Investment income – - 206 206
Receipts
Investment income – 71,757 289,423 361,180
Dividends
Total 2021 71,757 381,495 453,252
----- End of picture text -----

----- Start of picture text -----
Restricted Unrestricted Total 2020
funds 2020 funds 2020
£ £ £
-
Properties income – Rent 96,428 96,428
Investment income – - 165,409 165,409
Receipts
Investment income – - 382,387 382,387
Dividends
Total 2019 - 644,224 644,224
----- End of picture text -----

7. Other income

----- Start of picture text -----
Unrestricted Total funds Total funds
funds 2021 2021 2020
£ £ £
Facilities income 2,050 2,050 3,920
Furlough income 4,659 4,659 38,271
6,709 6,709 42,191
----- End of picture text -----

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8a. Analysis of expenditure – current year

----- Start of picture text -----
806,921 125,119 888,430 467,306 307,597 206,621 14,887 344,888
4,244,037 7,405,806 7,593,384
2020
2021 Total 4,522,864 2,073,704 205,679 621,605 486,820 199,875 291,806 80,371 507,690 8,990,412 - - 8,990,412 7,593,384 76
Support Costs 1,368,473 311,324 378,531 238,745 199,875 8,566 457,458 2,962,972 (2,962,971) - - 29
Governance 200,309 49,101 1,103 - 34,067 80,371 364,951 - (364,950) - -
205,679 - - - 205,679 - - 205,679 125,340 -
Grants and Awards
536,991 181,443 66,397 436 9,445 19,021 813,733 790,125 97,320 1,701,178 1,681,388 16 34%
Professional Practice
651,325 58,764 88,381 8,347 7,975 814,791 592,594 72,990 1,480,376 1,222,157 1 2%
Communi- cations and External Affairs
Professional Learning and Development 542,158 162,354 41,704 62,194 8,540 723 817,673 395,063 48,660 1,261,396 1,228,229 8 17%
366,519 - - 75,099 901 442,519 345,680 42,577 830,876 1,068,919 9 19%
Specialty Training
Exams 619,267 1,268,199 514 101,999 221,931 30,488 2,242,399 691,360 85,155 3,018,913 1,779,876 10 21%
Membership 237,822 42,519 44,975 - 381 325,697 148,149 18,247 492,093 487,475 3 6%
2021 Direct staff costs Direct expenses Grants payable Administrative overheads Information services Building Overheads Travel & meetings Governance costs Depreciation Subtotal Resources Expended Reallocation of support costs Reallocation of governance costs Total Resources Expended 2020 Headcount
----- End of picture text -----

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8b. Analysis of expenditure – prior year

----- Start of picture text -----
2020 Total 4,244,037 806,921 125,119 888,430 467,306 307,597 206,621 14,887 344,888 7,405,806 176,812 10,766 7,593,384 76
Support Costs 1,297,871 33,121 - 332,601 276,625 307,597 539 - 344,888 2,593,241 (2,593,241) - 29
Governance 63,358 147 - 47,951 - - 31,567 14,887 - 157,910 - (157,910) -
- - 125,119 221 - - - - - 125,340 - - 125,340 -
Grants and Awards
512,434 - - 107,644 - - 60,891 - - 680,970 942,997 57,422 1,681,388 16 34%
Professional Practice
844,602 98,643 - 186,105 18,340 - 11,942 - - 1,159,631 58,937 3,589 1,222,157 1 2%
Communi- cations and External Affairs
Professional Learning and Development 411,685 160,791 - 135,798 16,130 - 3,616 - - 728,019 471,498 28,711 1,228,229 8 17%
Specialty Training 418,224 - - 1,411 61,615 - 24,934 - - 506,183 530,436 32,300 1,068,919 9 19%
Exams 476,188 498,925 - 11,838 94,597 - 73,067 - - 1,154,615 589,373 35,889 1,779,876 10 21%
Membership 219,675 15,295 - 64,861 - - 65 - - 299,896 176,812 10,767 487,475 3 6%
2020 Direct staff costs Direct expenses Grants payable Administrative overheads Information services Building Overheads Travel & meetings Governance costs Depreciation Subtotal Resources Expended Reallocation of support costs Reallocation of governance costs Total Resources Expended Headcount
----- End of picture text -----

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9. Auditor’s remuneration

----- Start of picture text -----
2021 £ 2020 £
£ £
Fees payable to the College’s auditor for the audit of 14,359 12,300
the College’s annual accounts
Other fees payable to the College’s auditor: 0
VAT 5,484
Corporation Tax 2,878
Other 566
----- End of picture text -----

10. Staff costs

----- Start of picture text -----
2021 £ 2020 £
£ £
Wages and salaries 3,443,661 3,293,452
Social security costs 345,831 366,588
Contribution to defined contribution pension schemes 472,534 450,449
4,262,026 4,110,489
----- End of picture text -----

Included within salaries are redundancy payments totalling £85,400 (2020: £41,684). Of this, £2,766 was accrued for at year end and paid in January 2022 (2020: nil).

The average number of persons employed by the College during the year was as follows:

----- Start of picture text -----
No. 2021 No. 2020
Examinations 14 10
Speciality training 7 9
Professional Learning and Development 8 8
Professional Practice 10 16
Publications 12 1
Organisational support 26 29
77 73
----- End of picture text -----

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for the year ended 31 December 2021

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

----- Start of picture text -----
No. 2021 No. 2020
In the band £60,000– £69,999 4 1
In the band £70,000 –£79,000 1 2
In the band £80,000 –£89,999 2 2
In the band £90,000 –£99,999 0 1
In the band £120,000 –£129,999 1 0
In the band £130,000 –£139,999 0 0
----- End of picture text -----

Employer’s pension contributions were paid at a rate of 15%. Total employer’s pension contributions for employees earning more than £60,000 was £84,247 (2020: £58,915).

The total employee benefits including pension and employers NI contributions of the key management personnel were £769,125 (2020: £512,813).

11. Trustees’ remuneration and expenses

During the year, no trustees received any remuneration or other benefits ( 2020 £NIL ).

During the year ended 31 December 2021, expenses totalling £28,914 were reimbursed or paid directly to 20 trustees (2020 £5,770 to 21 trustees). Expenses were in connection with travel and accommodation costs.

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12. Intangible assets

----- Start of picture text -----
Database Development Intangible Total
(CRM) and Research Asset
Cost £ £ £ £
At 1 January 2021 901,264 43,396 10,072 954,732
Additions 261,205 167,011 147,612 575,828
Transfers - (43,396) 43,396 -
- - - -
Disposal
At 31 December 2021 1,162,469 167,011 201,080 1,530,560
Depreciation
-
At 1 January 2021 30,365 1,469 31,834
-
Charge for the year 154,716 19,745 174,461
- - - -
On disposals
At 31 December 2021 185,081 - 21,214 206,295
Net book value
At 31 December 2021 977,388 167,011 179,866 1,324,265
At 31 December 2020 870,899 43,396 8,603 922,898
----- End of picture text -----

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13. Tangible fixed assets

----- Start of picture text -----
Land Buildings Building Furniture Computers Artwork Total
Infrastructure Fixtures &
Fittings
Cost or £ £ £ £ £ £ £
valuation
At 1 January 2021 8,500,000 6,850,000 155,409 555,444 455,564 5,500 16,521,917
Additions - - 12,388 141,142 209,749 - 363,279
Transfer - - (31,640) 44,538 (12,898) - 0
- - - -
Disposals (39,726) (141,479) (181,205)
Revaluations - - - - - - -
At 31 December 8,500,000 6,850,000 96,431 599,646 652,415 5,500 16,703,991
2021
Depreciation
- -
At 1 January 2021 274,000 56,937 463,541 283,468 1,077,946
- -
Charge for the 137,000 17,349 43,582 135,297 333,228
year
Transfer - - (3,880) 3,880 - - -
- - - -
On disposals (39,706) (124,891) (164,598)
At 31 December - 411,000 30,700 386,112 418,765 - 1,246,576
2021
Net book value
At 31 December 8,500,000 6,439,000 65,731 213,534 233,650 5,500 15,457,415
2021
At 31 December 8,500,000 6,576,000 98,472 91,903 172,096 5,500 15,443,971
2020
----- End of picture text -----

The book value of the freehold property at 63 Lincoln’s Inn Fields is £15.4 million, which is based on the revaluation made by way of Cluttons, external valuer, as defined in RICS Valuation – Global Standards 2020 (The Red Book), as at 31 December 2018, which has been adopted as the deemed ‘historical cost’.

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14. Investment property

----- Start of picture text -----
Investment properties
£
Valuation
At 1 January 2021 3,400,000
Revaluation during the year 605,000
At 31 December 2021 4,005,000
----- End of picture text -----

Independent (external) valuations for each investment property were obtained from property agents. The valuation for Flat 7, 84 Fetter Lane is based on an offer to buy (£1,325,000).

15. Fixed asset investments

----- Start of picture text -----
Listed investments 2021 2020
£ £
Cost or valuation
At 1 January 2020 10,998,639 10,653,859
Additions - 152,427
Disposals (118,080) (499,000)
Revaluations 837,961 691,353
11,718,520 10,998,639
2021 2020
£ £
Sarasin Climate Active 11,717,512 10,985,087
Endowment fund units
Cash 1,008 13,552
11,718,520 10,998,639
----- End of picture text -----

Investments are lodged with Sarasin Partner’s Climate Active fund.

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16. Debtors

----- Start of picture text -----
2021 2020
£ £
Trade Debtors 146,921 208,040
-
Members’ subscriptions in advance 99,167
Other debtors 36,431 114,900
Prepayments and accrued income 312,470 207,564
495,822 629,671
----- End of picture text -----

17. Creditors: Amounts falling due within one year

----- Start of picture text -----
2021 2020
£ £
Subscriptions and fees in advance 1,638,407 1,657,392
Trade creditors 889,773 352,005
Other taxation and social security 164,345 197,540
Accruals and deferred income 441,972 204,639
CBIL Loan 150,000 -
3,284,497 2,411,576
2021 2020
£ £
Deferred income at 1 January 2021 133,499 180,247
Resources deferred during the year 376,842 401,718
Amounts released from previous (133,499) (448,466)
periods
376,842 133,499
----- End of picture text -----

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18. Creditors: Amounts falling due after one year

2021 2020
£ £
CBILS loan 750,000 -
Royalties contract bonus 40,000
790,000 -

CBILS loan is £900,000 over six years from March 2021 at a fixed interest rate of 2.91% charged from 9 March 2022 and repayable from 9 April 2022.

Royalty bonus was paid on signing new contract and will be amortised over the five-year life of the contract from 1 January 2022.

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19a. Statement of funds – current year

Balance at
1 January
2021
£		 Income
£		 Expenditure
£		 Transfers
in/out
£		 Gains/
(losses)
£		 Balance at
31 December
2021
£
Endowment funds
The Edinburgh EAR
Congress Essay
Prize		 a 30,352 - - (30,352) - -
The Edinburgh EAR
Congress Bursary		 b 122,876 - (2,100) (120,776) - -
153,228 - (2,100) (151,128) - -
Restricted funds
Educational funds c 3,406,903 74,732 (10,906) (3,767,687) 296,958 -
e-Learning Projects d 265,381 20,000 (33,755) (43,946) - 207,680
QSI Accreditation
Programme		 e 159,223 102,754 (145,666) 75,000 - 191,311
Other Restricted
funds		 f 73,491 7,873 (15,117) 42,757 - 109,004
New funds created 2021
Prize Fund j - - - 68,482 - 68,482
Lecture Fund k - - - 121,701 - 121,701
Research CO l - - - 490,682 - 490,682
Education Fund m - - - 1,741,763 - 1,741,763
3,904,998 205,359 (205,444) (1,271,248) 296,958 2,930,624
Unrestricted funds
General Funds 8,484,099 7,586,775 (8,199,618) (973,001) 1,158,541 8,056,796
Designated funds
Building n 500,000 - - - - 500,000
maintenance fund
Major projects fund o 397,848 - - - - 397,848
Clinical Oncology & p 159,544 - (75,560) - - 83,984
Radiology R&D fund
Cyclotron q 161,837 5,359 - 285 13,381 180,862
CR Research Fund r - - - 867,002 - 867,002
(Kodak)
Wormald Fund s - - - 630,374 - 630,374

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for the year ended 31 December 2021

----- Start of picture text -----
Balance at Income Expenditure Transfers Gains/ Balance at
1 January in/out (losses) 31 December
2021 2021
Fixed Asset funds
t - - -
Freehold property 15,076,000 (137,000) 14,939,000
Fixed asset fund u 392,754 - (196,228) 321,889 - 518,415
v - -
Intangible assets 922,898 (174,462) 575,827 1,324,263
26,094,980 7,592,134 (8,782,868) 1,422,376 1,171,922 26,498,544
Total of funds 30,153,206 7,797,493 (8,990,412) 0 1,468,880 30,429,168
----- End of picture text -----

The trustees agreed changes to the structure of restricted and endowment funds consolidating, repurposing and reclassifying the 29 funds under (a), (b), (c) into restricted funds j) to m) and unrestricted funds r) and s).

Purposes of restricted funds

d) e Learning projects – funds held in connection with e Learning projects including R-ITI.

e) QSI Accreditation project – funds used to help develop the Quality Standards in Imaging accreditation programme jointly with SCOR. £75,000 was transferred from the general fund to reflect RCR’s contribution to this programme in 2021.

f) Other Restricted funds includes funds set aside to support the development of professional development initiatives and new credentials.

j) to m) We report four new funds aimed at supporting lecture, prizes, CO research initiatives and other education purposes.

Purposes of designated funds

n) Building maintenance fund held against uninsured risk of damage to or need for development of 63 Lincoln’s Inn Fields, or against the costs of a move to a new property when the need arises.

o) Major projects fund held to support the Clinical Oncology Planning Project and the exams reform projects underway in 2022.

p) Clinical Oncology and Clinical Radiology research & development funds are used to support research and teaching initiatives in those specialities.

q) Cyclotron – Funds held to promote awareness, training and application of Cyclotron in the treatment of cancer.

r) CR Research fund donated by Kodak and reclassified as designated by agreement. There was a transfer of £867,002 from restricted to unrestricted funds.

s) Wormald Fund held to support global education activities of RCR created from the reclassification of £630,374 of funds identified as designated.

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Fixed Asset funds

t) Freehold property – this represents the value relating to the combined land and buildings 63 Lincoln’s Inn Fields, London WC2

u) Fixed asset fund – this is the book value of the unrestricted tangible fixed assets other than property held by the College, of which tangibles IS assets represent the largest proportion.

v) Intangible asset fund – represents the value of the intangible assets including iRefer guidelines and CRM application.

Transfers between funds

a) £75,000 was transferred from the General Fund to the Accreditation Scheme restricted fund for the 2021 RCR contribution to the scheme. (2020: £75,000)

b) £321,889 was transferred from General Fund to the Fixed Asset fund to represent the addition of assets purchased in the year.

c) £575,827 represents intangible assets purchased in year.

Trustees’ report and financial statements

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for the year ended 31 December 2021

19b. Statement of funds – prior year

----- Start of picture text -----
Balance at 1 Income Expenditure Transfers Gains/ Balance at
January 2020 in/out (losses) 31 December
2020
£ £ £ £ £ £
Endowment funds
The Edinburgh EAR a 31,152 - (800) - - 30,352
Congress Essay Prize
b - - -
The Edinburgh EAR 124,976 (2,100) 122,876
Congress Bursary
- - -
156,128 (2,900) 153,228
Restricted funds
Educational funds c 3,195,714 1,500 (12,199) - 221,888 3,406,903
d - -
e-Learning Projects 272,891 20,000 (27,510) 265,381
QSI Accreditation e 132,124 18,147 (66,048) 75,000 - 159,223
Programme
Other Restricted f 73,491 30 - 73,521
funds
3,674,190 39,647 (105,757) 75,030 221,888 3,904,998
Unrestricted funds
General Funds 9,526,190 6,171,801 (6,869,532) (804,130) 459,770 8,484,099
Designated funds
n - - - -
Building maintenance 500,000 500,000
fund
Major projects fund o 397,848 - - - - 397,848
Clinical Oncology & p 242,275 - (82,731) - - 159,544
Radiology R&D fund
Cyclotron q - 152,142 - (30) 9,725 161,837
Fixed Asset funds
t - - -
Freehold property 15,213,000 (137,000) 15,076,000
Fixed asset fund u 329,037 - (176,083) 239,800 - 392,754
v - -
Intangible assets 465,402 (31,834) 489,330 922,898
26,673,752 6,323,943 (7,297,180) (75,030) 469,495 26,094,980
Total of funds 30,504,070 6,363,590 (7,405,837) - 691,383 30,153,206
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20a. Summary of funds – current year

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Balance at 1 Income Expenditure Transfers, Balance at 31
January 2021 Gains/(losses) December 2021
£ £ £ £ £
Designated Funds 17,610,880 5,359 (75,560) 1,511,042 19,051,721
General funds 8,484,101 7,586,775 (8,707,308) 1,083,255 8,456,823
Endowment funds 153,228 - (2,100) (151,128) -
Restricted funds 3,904,998 205,359 (205,443) (974,290) 2,930,624
30,153,207 7,797,493 (8,990,411) 1,468,879 30,429,168
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20b. Summary of funds – prior year

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Balance at 1 Income Expenditure Transfers, Balance at 31
January 2020 Gains/(losses) December 2020
£ £ £ £ £
Designated funds 17,147,562 152,142 (427,619) 738,795 17,610,880
General funds 9,526,190 6,171,801 (6,869,530) (344,360) 8,484,101
Endowment funds 156,128 - (2,900) - 153,228
Restricted funds 3,674,190 39,647 (105,757) 296,918 3,904,998
30,504,070 6,363,590 (7,405,806) 691,353 30,153,207
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21a. Analysis of net assets between funds – current year

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Endowment Restricted Unrestricted Total funds 2021
funds 2021 funds 2021 funds 2021
£ £ £ £
Tangible fixed assets - - 15,457,415 15,457,415
Intangible fixed assets - - 1,324,265 1,324,265
Fixed asset investments - 2,930,624 8,787,896 11,718,520
Investment property - - 4,005,000 4,005,000
Current assets - - 1,998,465 1,998,465
Creditors due within 1 year - - (3,284,497) (3,284,497)
- -
Creditors due more than 1 year (790,000) (790,000)
Total - 2,930,624 27,498,544 30,429,168
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21b. Analysis of net assets between funds – prior year

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Endowment Restricted Unrestricted Total funds 2020
funds 2020 funds 2020 funds 2020
£ £ £ £
Tangible fixed assets - - 15,443,971 15,443,971
Intangible fixed assets - - 922,898 922,898
Fixed asset investments 153,228 3,904,998 6,940,413 10,998,639
Investment property - - 3,400,000 3,400,000
Current assets - - 1,799,275 1,799,275
Creditors due within 1 year - - (2,411,576) (2,411,576)
Total 153,228 3,904,998 26,094,981 30,153,207
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22. Reconciliation of net movement in funds to net cash flow from operating activities

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2021 2020
£ £
Net income for the year (as per Statement of Financial Activities) 275,961 (350,863)
Adjustments for:
Depreciation 507,689 344,888
-
Revaluation of investment properties (605,000)
(Gains)/losses on investments (863,880) (691,353)
Dividends, interests and rents from investments (391,442) (644,224)
Loss on the sale of fixed assets 16,607 24,813
Decrease/(Increase) in debtors 133,848 (147,299)
Decrease/(Increase) in creditors 762,921 (167,774)
Net cash provided by operating activities (163,296) (1,631,812)
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for the year ended 31 December 2021

23. Analysis of debt

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At 1 January Cash flow At 31 December
2021 2021
£ £ £
Cash in hand 1,169,604 333,039 1,502,643
-
CBILS Loan falling due in (150,000) (150,000)
less than 1 year
-
CBILS Loan falling due in (750,000) (750,000)
more than 1 year
Total cash and cash 1,169,604 333,039 602,643
equivalents
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24. Pension commitments

The College operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge outstanding at the balance sheet date were £59,202 (2020 – £48,643) and are included in creditors.

25. Operating lease disclosure – land and buildings

The total future minimum lease income under non-cancellable operating leases is as follows:

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2021 2020
£ £
Not later than 1 year 53,068 92,579
Later than 1 year and not later than 5 years 30,875 71,767
83,943 164,346
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26. Detailed comparatives for the statement of financial activities

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Endowment Restricted Unrestricted Total
funds 2020 funds 2020 funds 2020 funds 2020
Note £ £ £ £
Income and endowments from:
Donations and legacies 4 - 1,500 - 1,500
Charitable activities 5 - 38,147 5,641,448 5,679,595
Investments 6 - - 644,224 644,224
Other income 7 - 0 38,271 38,271
Total income and endowments - 39,647 6,323,943 6,363,590
Expenditure on:
Charitable activities 8 - 108,657 7,297,147 7,405,804
Total expenditure - 108,657 7,297,147 7,405,804
Gains/(losses) on revaluation of - - 0 0
fixed assets
Gains/(losses) on investments 15 231,583 459,770 691,353
Transfers
Net movement in funds - 162,573 513,435 350,862
Reconciliation of funds:
Total funds brought forward 156,128 3,674,190 26,673,752 30,504,070
Net movement in funds - 162,573 513,435 350,862
Total funds carried forward 156,128 3,836,763 26,160,317 30,153,208
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The Royal College of Radiologists 63 Lincoln’s Inn Fields London WC2A 3JW

+44 (0)20 7405 1282 enquiries@rcr.ac.uk www.rcr.ac.uk @RCRadiologists

The Royal College of Radiologists. Trustees’ report and financial statements for the year ended 31 December 2021 . London: The Royal College of Radiologists, 2022. The Royal College of Radiologists is a Charity registered with the Charity Commission No. 211540. © The Royal College of Radiologists, July 2022.

This material has been produced by The Royal College of Radiologists (RCR) for use internally within the specialties of clinical oncology and clinical radiology in the United Kingdom. It is provided for use by appropriately qualified professionals, and the making of any decision regarding the applicability and suitability of the material in any particular circumstance is subject to the user’s professional judgement. While every reasonable care has been taken to ensure the accuracy of the material, RCR cannot accept any responsibility for any action taken, or not taken, on the basis of it. As publisher, RCR shall not be liable to any person for any loss or damage, which may arise from the use of any of the material. The RCR does not exclude or limit liability for death or personal injury to the extent only that the same arises as a result of the negligence of RCR, its employees, Officers, members and Fellows, or any other person contributing to the formulation of the material.