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2020-06-30-accounts

Consolidated Annual Report and Accounts

for the period ended 30 June 2020

Registered Charity No. 213280 Scottish Registered Charity No. SC041594 Royal Charter No.

1 GB 1538 RCOG/H

Royal College of Obstetricians and Gynaecologists

Contents

For the year ended 30 June 2020

Reference and administrative information ....................................................................................................... 1 Foreword ........................................................................................................................................................... 6 Report of the trustees ..................................................................................................................................... 11 Independent auditors' report .......................................................................................................................... 42 Statement of financial activities (incorporating an income and expenditure account) .................................. 46 Balance sheets ................................................................................................................................................. 47 Consolidated statement of cashflows ............................................................................................................. 48 Notes to the financial statements ................................................................................................................... 49

Royal College of Obstetricians and Gynaecologists

Reference and administrative information

For the year ended 30 June 2020

© 2021 Royal College of Obstetricians and Gynaecologists First published 2021

All rights reserved. No part of this publication may be reproduced, stored or transmitted in any form or by any means, without the prior written permission of the publisher or, in the case of reprographic reproduction, in accordance with the terms of licences issued by the Copyright Licensing Agency in the UK [www.cla.co.uk]. Enquiries concerning reproduction outside the terms stated here should be sent to the publisher at the UK address printed on this page.

Published by the Royal College of Obstetricians and Gynaecologists Royal College of Obstetricians and Gynaecologists

10-18 Union Street

London SE1 1SZ UK

Registered Charity No. 213280 Scottish Registered Charity No. SC041594

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Royal College of Obstetricians and Gynaecologists

Reference and administrative information

For the year ended 30 June 2020

Council

President President Senior Vice President Strategic Development Senior Vice President Global Health Vice President Membership Vice President Membership Vice President Education Vice President Education Vice President Clinical Quality Vice President Clinical Quality Vice President Global Health

Lesley Regan (demitted 13 December 2019) Edward Morris (started term 13 December 2019) Mary Ann Lumsden (demitted 13 December 2019) Ranee Thakar (started term 13 December 2019) Alison Wright (demitted 13 December 2019) Pat O’Brien (started term 13 December 2019) Janice Rymer (demitted 13 December 2019) Sue Ward (started term 13 December 2019) Edward Morris (demitted 13 December 2019) Tim Draycott (started term 13 December 2019) Hani Fawzi (demitted 13 December 2019)

Elected Fellows

London: North, Central, East & NW Patrick O’Brien / Nick Panay London: South Basky Thilaganathan Eastern England Jane Thomas Preston / Andrew Leather Northern/Yorkshire/Humber Adam Balen South West Tim Overton North West Sarah Vause Kent Surrey & Sussex Hany Habeeb Thames Valley & Wessex Felicity Ashworth / Ian Currie* East Midlands Susan Ward / Ian Scudamore West Midlands Sean Kehoe / Andrew Sizer Wales Euan Kevelighan / Geeta Kumar Scotland Kirsty Dundas Phil Owen / Alastair Campbell Republic of Ireland John Morrison / Michael Geary Northern Ireland Carolyn Baillie Middle East and North Africa Hassan Shehata America/Australasia/Pacific Rim Tim Draycott / John Latimer Sub-Saharan Africa Rhona Hughes / Dilly Anumba South Asia Ranee Thakar / Jyotsna Acharya Europe Fionnuala McAuliffe / Stergios Doumouchtsis****

Elected Members

London: North, Central, East & NW George Attilakos London: South Vasanth Andrews East of England Edward Prosser-Snelling / Alastair McKelvey Northern/Yorkshire/Humber Usha Nair / Hlupekile Chipeta** South West Katherine Edey / Jonathan Frost North West Martin Maher

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Royal College of Obstetricians and Gynaecologists

Reference and administrative information

For the year ended 30 June 2020

Kent, Surrey & Sussex Thames Valley & Wessex East Midlands West Midlands Scotland Ireland Wales

Abhijeet Shah Deborah Harrington / Vanitha Kumar* Indranil Dutta Tony Thomas Lucky Saraswat Declan Quinn / Claire Thompson Anthony Griffiths / Angharad Jones***

Members

Chair Trainees’ Committee Adalina Sacco Vice Chair Trainees’ Committee Sarah Murray / Sarah Quinn* Academic Board Andrew Horne SAS Lead Laura Hipple Women’s Voices Lead Kate Brian / Shaista Gohir Vice Chair Women’s Network (rotating) Catherine Nestor and Jane Plumb President Faculty of Sexual and Reproductive Healthcare, RCOG Asha Kasliwal

*** to 13 December 2019 / wef 17 January 2020

**** to 23 October 2020 / wef 23 October 2020

* to 27 August 2020 / wef 27 August 2020

Board of Trustees

Chair President

Senior Vice President Vice President President Senior Vice President Vice President RCOG Fellow RCOG Member RCOG Fellow RCOG Member RCOG Council Representative RCOG Council Representative Trustee Trustee Trustee Trustee

Baroness Tessa Blackstone (appointed 20 September 2019) Lesley Regan (resigned as Chair on 20 September 2019) (demitted office of President 13 December 2019) Mary Ann Lumsden (demitted 13 December 2019) Edward Morris (demitted 13 December 2019) Edward Morris (appointed 13 December 2019) Ranee Thakar (appointed 13 December 2019) Jo Mountfield (appointed 13 December 2019) David Farquharson (resigned 31 January 2021) Daghni Rajasingam (resigned 31 January 2021) Steven Thornton (appointed 1 February 2021) John Heathcote (appointed 1 February 2021) Felicity Ashworth (resigned 20 September 2019) Ian Currie (appointed 6 March 2020 Patrick Finch (resigned 31 July 2020) Roy Martin (until 26 August 2019) Linda Nash (resigned 31 July 2020) Sir Eric Thomas

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Royal College of Obstetricians and Gynaecologists

Reference and administrative information

For the year ended 30 June 2020

Trustee Kate Mathers Trustee Lynne Berry (appointed 20 September 2019, resigned 24 October 2019) Trustee Roy Clarke (appointed 28 May 2020) Trustee Noah Franklin (appointed 1 September 2020) Executive Director Team Chief Executive Kate Lancaster Deputy Chief Executive Fred Emden (resigned February 2020) Executive Director of Education, Quality and Gary Waltham Projects Rachel Dell (left October 2019) Executive Director of Finance and Resources Paul Di Paola (from January 2020, resigned August 2020) Yusuf Firat (interim from September 2020) Executive Director of External Affairs Victoria Bytel (interim, resigned January 2020) Claire Dunn (from January 2020) Executive Director of Membership and Global Jennifer Woodside (from December 2019, resigned March 2020) Kristen Morgan (interim from April 2020)

Advisers

External Auditors Sayer Vincent LLP Invicta House 114-118 Golden Lane London EC1Y 0TL

Internal Auditors

CW Audit Kingston House 438-450 High Street West Bromwich B70 9LD

Bankers Barclays Bank plc Hanover Square Corporate Banking Group PO Box 15163H 50 Pall Mall London SW1A 1QD

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Royal College of Obstetricians and Gynaecologists

Reference and administrative information

For the year ended 30 June 2020

Solicitors

Hempsons 40 Villiers Street London WC2N 6NJ

Bates Wells Queen Street Place London EC4R 1BE

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Royal College of Obstetricians and Gynaecologists

Foreword

For the year ended 30 June 2020

Foreword

The 2019/2020 financial year was the last full year of the RCOG’s three-year strategy, which spanned the years 2017-20. During this period the College has made strides in its aims of providing high-quality lifelong learning to our members around the world; improving women’s lives globally by enabling the delivery of safe, high-quality clinical care; working with partners and stakeholders to influence decision-makers and effect change; and achieve resilience through more sustainable, innovative and agile ways of working.

This year has seen the College continue to deliver a range of initiatives that aim to improve the quality of care both in the UK and globally, across both maternity and gynaecological care. Important steps were also taken to modernise our educational activity, including starting work on the digitisation of the College’s exams, something which only grew in importance as the coronavirus pandemic and associated government restrictions disrupted traditional ways of working. Recognition of the value the College brings to policymakers and politicians continued to grow, with the UK governments all responding to the College’s call for the development of women’s health strategies. Finally, our move to our freehold property in Union Street was an important milestone for the College’s long-term financial sustainability.

While the global coronavirus pandemic has undoubtedly had an impact on the College’s operations and finances, it has also demonstrated that the work of the College is now more important than ever. The ambitious new strategy for 2020-25 sets out how the College will expand its reach and influence both within the UK and internationally, to ensure the highest standards of education and clinical practice and inform obstetric and gynaecological care across the world. This includes a commitment to expanding our policy and influencing work to engage decision-makers in women’s health beyond the UK. We will work with our members around the world to ensure our expertise is shared at the highest level as healthcare systems rebuild and reprioritise care as they emerge from the pandemic.

In order to support these ambitions, it is of course imperative that the College prioritise financial and operational recovery post-pandemic. This has been embedded in day-to-day management of the College over the past year as well as in the 2020-25 strategy. I believe these measures will ensure the College contributes to the improvement of women’s health worldwide, bringing together the clinical expertise of our global membership and the experiences and voices of the girls and women we are ultimately here to serve.

Baroness Blackstone Chair, Board of Trustees (from 20 September 2019)

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Royal College of Obstetricians and Gynaecologists

Foreword

For the year ended 30 June 2020

There is much for the College to be proud of this year across all areas of our work, not least the response by staff, Officers, Council, Trustees and our wider membership to the demands of the pandemic. Our clinical colleagues have been on the front line of care in healthcare systems across the world, leading to a rapid reassessment of organisational priorities as the pandemic hit to ensure the College was providing the most appropriate and effective support, most notably by developing guidance for maternity and gynaecology services and keeping this updated as new evidence emerged. At the same time, the impact of the pandemic and associated government restrictions on the College’s ability to carry out core activity such as exams and events, as well as on our trading activities, has meant an even more rigorous approach to financial planning and monitoring to ensure we emerge from the pandemic in as strong a position as possible.

The development of the new RCOG strategy for 2020-25, led by the Executive and Officers team in collaboration with key stakeholders - Trustees, Council, College staff and the Women’s Network - builds on the numerous strengths of the College and our international membership. It will be supported by a comprehensive digital transformation programme, which will improve the accessibility of all of our products and services, while a focus on financial and environmental sustainability will support the longterm future of the College and the societies in which we work. Our ultimate goal is to achieve expanded reach and influence among the global O&G community, policy-makers and other key stakeholders, all with the aim of improving women’s health globally.

Beyond the pandemic, and indeed during it, the College has continued to deliver our core activities within education, clinical quality, global health and external affairs, providing our members with a wide range of resources and support for their working lives. This included the conclusion in August 2020 of the sale of the College’s academic journal BJOG to Wiley, our long-term journal publishing partner. This new arrangement will ensure the long-term sustainability of BJOG and its contributions to women’s health in the face of significant changes within academic publishing, while also securing an ongoing relationship between the College and the journal. This year also saw the College celebrate our 90th anniversary, with key achievements of the College and our members celebrated throughout the year and a 90th anniversary book, signed by members, staff and supporters, created for our archive and heritage collections. As well as looking back at our history, we also helped ensure the future sustainability of the College with our move to new premises near London Bridge in December 2019. Our move also provided an opportunity to review our ways of working and introduce more flexibility for staff, including an emphasis on working from home. This allowed our transition to full-time working from home in March 2020 as a result of the pandemic to be as smooth as possible.

This year has also seen significant changes for the College in terms of our governance. In September 2019 we welcomed Baroness Blackstone as the first independent Chair of the Board of Trustees, a role that was previously held by the RCOG President. This was an important step in the ongoing evolution of the College, helping to ensure we are governed in the most appropriate and effective way for a charity of our nature and size. Completion of a wider governance review has also strengthened the structure that supports the Board of Trustees and Council. In addition, this year was the first time the President of the College was elected by the UK membership rather than by Council, helping to make our processes more democratic and open while also increasing engagement with and accountability to our members. We have also seen a

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Royal College of Obstetricians and Gynaecologists

Foreword

For the year ended 30 June 2020

renewed focus this year on equality, diversity and inclusion, as well as environmental sustainability, with both issues embedded into our new corporate strategy.

Finally, the commitment of College staff throughout this year has once again been the driving force behind our many achievements. 2019/20 was always going to be a year of significant change for our staff, with the relocation of our headquarters. The global coronavirus pandemic added further pressures. Throughout this year our staff have gone above and beyond to demonstrate their dedication to the College, our members and our goal of improving women’s health globally.

While the months ahead as we move forward from the pandemic will undoubtedly have their difficulties, the energy and expertise of our members, staff and Officers, and the work we have collectively undertaken this year, have ensured we have as strong a foundation as possible on which to build. I am sure that this year will once again bring much for the College to be proud of.

Kate Lancaster

CEO

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Royal College of Obstetricians and Gynaecologists

Foreword

For the year ended 30 June 2020

Taking up office as RCOG President in December 2019, little did I know that within less than three months both my day-to-day clinical life and my Presidential responsibilities would be dominated by a completely new virus and a global pandemic. That the College has been able to respond so quickly and so effectively to both the changing needs of our members and the women for whom we provide care, and the new financial and operational challenges facing the organisation, is testament not just to the hard work and dedication of the current Officer and Executive team, supported by Council and College staff, but also to the work of my predecessor as President, Professor Lesley Regan, and her team of Vice Presidents for their support and encouragement as the new team took up the reins.

Our key priority during the pandemic has been to ensure healthcare professionals have the support and resources they need to continue to provide safe, high-quality care, and that women and their families have access to information about the pandemic and its impacts on their health and healthcare. Our Guidance Cell has swiftly synthesised new and emerging data into practical clinical guidance and Q&As for women, ensuring all parties can keep up to date with our ever-evolving understanding of this new virus. The huge growth in visitors to our website and our social media channels, and requests for expert comment and input across a range of media and policy platforms, is testament to the incredible demand for and value of our work – something that was highlighted by the inclusion of the College’s guidance on coronavirus and pregnancy in the Prime Minister’s letter to all households in spring 2020.

We also recognised the need to ensure our members were supported to deliver care in the new world of healthcare during the pandemic. This has included advocating for the needs of our members – as well as of the women and babies for whom we care – in terms of avoiding where possible the redeployment of maternity staff into other specialties in response to the pandemic, as well as on the specific needs for personal protective equipment in O&G care settings; supporting members who returned to frontline care from retirement; and developing resources to enable those who practise predominantly or solely in gynaecology to safely return to work on maternity wards. Ensuring that support for our members is at the heart of everything we do is one of my main aims during my Presidency and I believe the work undertaken during the pandemic demonstrates the best of what we can do. This aspiration is firmly embedded within the College’s new strategy, recognising the central importance of our members to everything we do. Digitisation of our core activities, products and services, which has accelerated this year, will be a key enabler for this work, ensuring we are as accessible and supportive as possible wherever our members are in the world.

The College’s relationships and engagement with policy-makers has been another key achievement this year. Following the launch of Better for Women in December 2019, which set out a number of key policy recommendations to improve the health and wellbeing of girls and women, saw fantastic engagement from policy-makers in all four devolved nations of the UK around the need for the development of women’s health strategies. While much of this work is currently paused because of the pandemic, other areas of our work have come to the fore. A key achievement has been the role the College played in supporting the introduction of telemedicine abortion care where appropriate, with data demonstrating that not only have women seeking these services been able to avoid the risk of coronavirus infection, they have also been able to access abortions at earlier gestations, further increasing the safety of this procedure. We continue to foster relationships with all relevant stakeholders on a range of policy issues within women’s health, and

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Royal College of Obstetricians and Gynaecologists

Foreword

For the year ended 30 June 2020

our new strategy makes it clear this area of activity is a core strength of the College on which we wish to build for the future.

A key area of our clinical focus has continued to be maternity safety, with a number of cases this year of investigations finding poor practice in maternity care, in some cases with tragic outcomes for babies, women and their families. Throughout the year, the College has engaged with these findings and has been clear about the role we and our members have to play in learning the lessons and implementing recommendations. Much of the work in our Centre for Quality Improvement and Clinical Audit is already contributing to improvements in the safety and quality of clinical care across the UK, including Each Baby Counts, our national quality improvement project to reduce the number of stillbirths, neonatal deaths and brain injuries occurring as a result of incidents during term labour; Each Baby Counts + Learn and Support, a joint RCOG/Royal College of Midwives (RCM) programme to support multidisciplinary maternity teams in England to implement and evaluate interventions that focus on behaviour, team work, safety and positive work culture in their units; and the National Maternity and Perinatal Audit, a large scale audit of NHS maternity services across England, Scotland and Wales. This year also saw the launch of the Tommy’s Centre for Maternity Improvement, again in partnership with the RCM, which is working to prevent stillbirths and preterm births across the UK.

The College’s work to improve the safety and quality of gynaecological care has also progressed this year, with funding received to scale up the OASI programme, which is designed to reduce rates of obstetric anal sphincter injuries – third- and fourth-degree tears – through an intervention package. On the global stage, this year our Making Abortion Safe programme has moved through its inception phase and is well under way with its work to increase the capacity of healthcare professionals to address barriers to safe abortion and/or post-abortion care for women and girls globally. Our Essential Gynaecological Skills programme has also continued to grow this year, with hopefully exciting developments ahead.

As always, much of our work is undertaken with key partners, which helps ensure the reach and impact of our work is as great as possible. We continue to work closely with the Faculty of Sexual and Reproductive Healthcare (FRSH) on a number of issues, enabled by the Faculty moving with us from Sussex Place to our new home in Union Street in December 2019. I am delighted that in summer 2020 the RCM also joined us at Union Street, helping to make the idea of a women’s health hub, bringing together key stakeholders and supporting ever greater engagement, a reality. These key partnerships will be invaluable as we look to the future and begin work on implementing our ambitious new strategy.

Mr Edward Morris President (from 13 December 2019)

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Royal College of Obstetricians and Gynaecologists

Report of the Trustees

For the year ended 30 June 2020

Report of Trustees

Principal activities, aims and objectives

The principal object of the College, as described in its Royal Charter, is ‘the encouragement of the study and advancement of the science and practice of obstetrics and gynaecology’. This is reflected in the College’s mission, which is to set standards to improve women’s health and the clinical practice of obstetrics and gynaecology in the British Isles and across the world. Promoting best practice is at the heart of the College’s activities.

In practical terms, the College does this through setting standards for training and best practice, educating and supporting Fellows, Members, trainees and other clinicians, and advancing science and practice in the specialty by working with other organisations in health and in the care of women.

Our activities are funded through membership fees, examination charges and educational activities, publications and operating as a conference venue.

The College is registered with the Charity Commission in England and the Scottish Charity Regulator, although it pursues educational and standards setting activities across the whole of the UK as well as in an increasing number of other countries.

Strategic report

The following four strategic goals form the basis for strategic reports from 2017/18 to 2019/20:

  1. To improve women’s health care by high-quality education, training and support of doctors throughout their careers.

  2. To improve women’s lives globally through the development of safe, high-quality clinical care throughout adolescence, reproductive and post-reproductive years.

  3. To connect healthcare professionals, service users and partner organisations to radically improve women’s health care both in the UK and globally.

  4. To achieve resilience by developing workforce and financial sustainability, innovation and technological agility.

Since March 2020, the coronavirus pandemic and associated government restrictions have presented a number of opportunities and challenges to the College. These are captured in a separate ‘Spotlight on COVID-19’ section of this report.

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Royal College of Obstetricians and Gynaecologists

Report of the Trustees

For the year ended 30 June 2020

Spotlight on COVID-19, February – June 2020

The coronavirus pandemic, and accompanying government restrictions both in the UK and worldwide, have had a significant impact on the College’s activities this year. We worked to find creative solutions to the challenges we faced to allow us to continue to support our members to provide compassionate and high-quality healthcare to women and girls around the world. This spotlight section covers College activities within the 2019/20 financial year, with work to support our members, the wider public and our staff continuing to build on these initial foundations beyond June 2020.

Supporting clinical practice

At the beginning of the pandemic, in February 2020, we established a Guidance Cell to rapidly develop clinical guidance to support healthcare professionals, as well as women and their families, during the pandemic, working closely with a range of stakeholders. Twelve pieces of guidance were published, with topics including:

• COVID-19 infection and pregnancy
• COVID-19 infection and abortion care
• Service modifications to reduce the risk of virus transmission, including a testing framework
specific to maternity care
• Service modifications to O&G care to manage the impacts of acute changes within the NHS, such
as staffing shortages and the cancellation of elective services, at the peak of the pandemic and
during localised outbreaks
• Restoration of services post-pandemic

The Guidance Cell continued to meet regularly to closely monitor the ongoing situation and respond to the needs of the RCOG membership, and of women and their families, by keeping the guidance up to date as new data emerged.

The College’s external affairs activity was instrumental in ensuring easier access to abortion care during the pandemic: • After successful lobbying by the RCOG and partners, the regulations on abortion were temporarily changed to enable women in England, Scotland and Wales to access early medical abortion services from home, via remote consultations and treatment packages sent through the post • This completely safe option enabled self-isolation during the pandemic and saved precious NHS resources • Regular publication of abortion statistics revealed that this change led to more women having abortions at earlier gestations, which makes the procedure even safer • A Department of Health and Social Care consultation was subsequently launched regarding the potential to make permanent the temporary measures put in place during the pandemic

We also responded to a number of policy consultations on issues related to the pandemic, including:

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Royal College of Obstetricians and Gynaecologists

Report of the Trustees

For the year ended 30 June 2020

• Women and Equalities Committee: unequal impact of COVID-19 on BAME people • Women and Equalities Committee: gendered economic impact of COVID-19 • All-Party Parliamentary Group on Coronavirus: initial evidence submission about the impact of coronavirus within obstetrics and gynaecology, and women’s health more widely In addition, we engaged with and supported various stakeholders in their work on diverse initiatives related to the COVID-19 pandemic: • Human Fertility and Embryology Authority – use of immunosuppressant therapies as part of fertility treatment during the pandemic; • BMA and UK medical leaders – call for a rapid forward-looking review of the UK’s preparedness for a second wave of the pandemic; • Academy of Medical Royal Colleges – numerous initiatives, including: potential judicial review into PPE provision; potential litigation against doctors practising outside their usual area of practice during the pandemic; extension to the Brexit withdrawal period due to the impact of COVID-19 on the NHS, and the potential impact on healthcare of a no-deal Brexit; impact of COVID-19 on BAME populations; impact on training and education; principles for reintroduction of services affected by the pandemic; reopening of schools; issues around medical education and training, equalities and staff support in the context of the restoration of services post-pandemic; • NHS England and other arm’s length bodies on restoration of services, including capturing beneficial changes which occurred as part of the pandemic, and guidance for maternity visitors and partners attending antenatal appointments and scans Information for women In addition to developing clinical guidance for our members and other healthcare professionals, we developed information resources for women and the wider public : • We developed Q&As based on our clinical guidance on COVID-19 and pregnancy but aimed at a lay audience, which included answers to common questions asked by pregnant women and their families • We developed a public-friendly information campaign including infographics and animation that reached 9.6 million people up to 30 June 2020 • We adapted our Q&As for women into a number of videos shared on Mumsnet, reaching thousands of pregnant women • With the Royal College of Midwives (RCM), we hosted three Twitter Q&As, reaching hundreds of pregnant women directly • We set up a dedicated COVID-19 inbox to allow both members and the public to ask questions and make suggestions for future resources; by the end of June 2020, we had received and responded to over 1,000 queries Reach of our guidance and information for women All of our COVID-19 resources, for both healthcare professionals and the general public, were brought together in a dedicated coronavirus hub on our website and promoted through various communications channels :

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Royal College of Obstetricians and Gynaecologists

Report of the Trustees

For the year ended 30 June 2020

• By the end of June 2020, our coronavirus hub received over 2.25 million unique views, with the website servers needing to be upgraded to ensure sufficient capacity for the increase in demand • Over 15,000 people had signed up to receive email alerts whenever updates to our guidance were released • Our social media accounts saw huge audience growth as people began following our accounts seeking information during the pandemic (all figures to 30 June 2020): - Instagram: 15,617 new followers (1,238% increase); 1.68 million impressions; 90,827 profile views - Facebook: 11,654 new page likes (381% increase); 4.8 million page impressions; 88,974 page views - Twitter: 8,283 new followers (199% increase); 3.38 million impressions; 22,994 mentions • Over 1,300 people registered for the College’s two COVID-19 webinars • In the first three months of the pandemic, the RCOG responded to more than 160 media queries (triple the number for the same period in 2019), facilitated more than 35 television and radio interviews and featured in more than 150 print articles as well as thousands of online pieces, reaching a potential online audience of 1.7 billion; this ensured the College’s clinical guidance featured in English language pieces from across the world, from North America to Australasia and the Gulf The College’s clinical guidance and Q&As for women were seen as the single point of truth on COVID-19 and pregnancy by a number of key stakeholders: • Government departments, the NHS and the RCOG’s Royal Patron, HRH The Duchess of Cambridge, all linked to the College’s COVID-19 and pregnancy resources from their websites and social media accounts • In a leaflet sent to every home in the UK by the Prime Minister, the RCOG was referenced as the place to go for information about pregnancy and COVID-19 infection Supporting our members We instigated a number of initiatives to support our global membership working on the front line of the pandemic in diverse healthcare systems around the world: • Retired members returning to clinical practice during the pandemic had their online membership benefits restored free of charge to support their return to work • We updated our return to work guidance to support retired O&G professionals returning to front-line care • We also made available refresher resources to support members moving into different areas of practice during the pandemic, with a particular focus on maternity emergencies and patient safety • In collaboration with the Royal College of Surgeons of Edinburgh, we held a webinar on compassionate leadership and how to support teams in post-pandemic work environments, which was attended by over 200 O&G doctors and surgeons • We retained online library, research and archive services to support our members throughout the pandemic

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Royal College of Obstetricians and Gynaecologists

Report of the Trustees

For the year ended 30 June 2020

Global health

Education and exams

We adapted our education offering to support members during the pandemic:

We also adapted the model for our exams to help prevent disruption to trainee progression through the O&G training programme in light of the pandemic:

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Royal College of Obstetricians and Gynaecologists

Report of the Trustees

For the year ended 30 June 2020

was then fast-tracked, with the first digital written exams – originally planned for summer 2021 – moved forward by 10 months to autumn 2020

The restrictions put in place by governments worldwide as a result of the pandemic meant our events, courses and conferences programme for spring 2020 was largely postponed or cancelled. This included our annual World Congress, scheduled to take place in March 2020. A significant amount of work was undertaken to ensure our summer and autumn programme could begin to be delivered virtually where possible, including plans for a fully virtual World Congress in 2021.

Supporting RCOG staff

We put in place a range of measure to support RCOG staff following the Government instruction in late March 2020 that all employees should work from home where possible, and following the introduction of the Job Retention Scheme (furlough):

Operations

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Royal College of Obstetricians and Gynaecologists

Report of the Trustees

For the year ended 30 June 2020

Strategic goal 1: To improve women’s health care by high-quality education, training and support of doctors throughout their careers

Ensuring that the O&G profession – our global membership , numbering c.15,800 in over 100 countries – is supported throughout their careers to deliver the highest levels of care to women and girls is a key strategic priority for the College.

This year, 1,085 people were either welcomed to Membership or elevated to Fellowship. New online application processes for Associates and Affiliates were also introduced, with the aim of supporting more healthcare professionals to join our global O&G community.

The clinical expertise of our members continued to drive all of our work through the involvement of our Fellows, Members, Trainees and Associates in our Boards, Committees and other working groups, with many more contributing to our work via less formal avenues.

We continued to provide a range of support services to our members and collaborate with other organisations to understand and address issues which have an adverse effect on workplace cultures and good team working. We established an online peer-to-peer group for our network of Workplace Behaviour Champions, allowing them to share resources and discuss cases as part of their work to support our trainees who are experiencing difficulties in the workplace. We also continued to work with the Royal College of Surgeons of Edinburgh to promote positive workplace behaviours and patient safety, with a joint anti-bullying and undermining event in Belfast in February 2020, as well as with the National Anti-bullying Alliance to stamp out bullying in the NHS and social care workplaces.

As part of our work to better understand and support equality, diversity and inclusion (EDI) within the O&G workforce, we updated our application forms for awards and prizes, and for Advisory Appointment Committee (AAC) assessors, allowing us to monitor this information and ensure future opportunities and services for our members are more inclusive. We also launched a new online application platform for RCOG awards to make them more accessible to our members, resulting in a 122% uplift in applications compared with last year. We also saw a 200% increase in the number of AAC representatives throughout the UK, following a successful ‘get involved’ campaign in December 2019. In addition, nominations for the Eardley Holland Medal, which is awarded every five years, were opened up to Fellows and Members for the first time this year. The 2020 winner, Professor Jane Norman, is the first female winner of the award since its establishment in 1960.

Within education , the new core curriculum for UK O&G trainees, which was launched in August 2019, has now been fully implemented. Over 3,500 trainees and trainers engaged with the new curriculum and the ePortfolio and successfully completed the first annual assessment cycle using the new methodologies and

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Royal College of Obstetricians and Gynaecologists

Report of the Trustees

For the year ended 30 June 2020

assessment tools. The Training ePortfolio underwent a period of significant transformation post launch, focusing on enabling the Annual Review of Competence Progression (ARCP) process and improving the overall user experience.

As part of the College’s commitment to EDI across all of our activities, a new honorary role of Differential Attainment Advisor was created to support our work across education.

Our new continuing professional development (CPD) framework was launched in August 2019, accompanied by a new CPD ePortfolio. The new framework is designed to better support ongoing professional development in a much more flexible way, ensuring both formal and informal learning across both clinical and wider non-clinical professional skills can be captured in a way that our members can tailor to their individual needs.

Looking internationally, the College continued its work to support and quality assure O&G training at Iceland’s Landspitali hospital, with Landspitali now formally accredited to deliver the RCOG ST1–ST3 core curriculum using the RCOG Training ePortfolio. Our work in China also continued, with bespoke Training the Trainers and exam question writing courses delivered to Chinese educational supervisors in Shenzen and RCOG faculty presenting at a regional medical education conference.

Our global educational reach was also reflected in the continued growth of the College’s exams , with increased demand for the College’s Membership exam, the MRCOG, in Asia and the Gulf. In total:

The growth of the Part 3 exam was supported by the launch of a new centre in Chennai and a doubling of capacity in Delhi for the November 2019 exam, and by doubling the number of centres running our Part 3 MRCOG revision franchise courses from four in autumn 2018 to eight in autumn 2019, including two new courses in India.

We also continued to develop our Diploma (DRCOG) exam, which aims to strengthen expertise in women’s health in the primary care setting. A new syllabus was launched in January 2020, with the first exam based on this new syllabus taking place in October 2020.

The College continued to offer a number of educational products and services to support our members’ lifelong learning and development. Our courses and conferences are a popular way for our members to keep up to date with clinical developments and network with peers, with the 2019 Annual Academic Meeting seeing a record number of abstract submissions and a 30% increase in delegates compared with the previous year, and the World Congress (planned for March 2020 but subsequently postponed as a result of the COVID-19 pandemic) seeing the highest ever number of delegate registrations for an

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international RCOG congress. We also launched a new member email alert to support The Obstetrician & Gynaecologist ( TOG ), the College’s educational and CPD journal, to ensure our global members are aware of the newest journal content – particularly important as the journal moves increasingly online.

Strategic goal 2: To improve women’s lives globally through the development of safe, highquality clinical care throughout adolescence, reproductive and post-reproductive years

Our focus on quality improvement continued this year via the work of the Centre for Quality Improvement and Clinical Audit. The National Maternity and Perinatal Audit (NMPA), an audit of maternity care across England, Scotland and Wales, published its second clinical report in September 2019 containing data on over 700,000 births. The report was accompanied by an executive summary, lay report and a suite of interactive tools for clinicians (and other stakeholders) to quickly view and then more rigorously analyse their data in order to implement quality improvement initiatives.

Evaluation of the OASI Care Bundle Project, an intervention designed to reduce rates of obstetric anal sphincter injuries (third- and fourth-degree tears during childbirth), found that the OASI Care Bundle reduced injury rates from 3.3% to 3.0%, without affecting rates of caesarean section or episiotomy. The clinical results were published in BJOG and BMJ Open in summer 2020. As a result of this success, the RCOG was awarded a Health Foundation grant to scale up the intervention to more maternity units in England, Scotland and Wales, with project-set up for OASI2 initiated in April 2020.

Each Baby Counts (EBC), the RCOG’s national quality improvement programme to reduce the number of babies who die or are left severely disabled as a result of incidents occurring during term labour, released its 2019 Progress Report in March 2020. The report presented key findings and recommendations based on analysis of the 2017 data, with a major focus on obstacles to appropriate escalation within maternity care (ie, escalation to more experienced or senior clinical colleagues).

Each Baby Counts + Learn and Support (EBC + L&S), a joint initiative between the RCOG and the Royal College of Midwives (RCM) to support trusts to improve maternity care in England, held nine workshops focusing on leadership, maternity safety and quality improvement. As part of the programme, 16 Local Development Leads from maternity services in England continued work to design, implement and evaluate interventions to improve the safety and quality of clinical escalation.

Within our clinical quality team, in September 2019 the Tommy’s Centre for Maternity Improvement was launched. This is a partnership with the RCOG and the RCM working in collaboration with the University of Bristol, the University of Sheffield, St George’s University of London, King’s College London and PROMPT Maternity Foundation. The Centre will run a five-year programme whose overarching aim is to use currently recommended interventions to reduce rates of preterm birth and stillbirth in the UK, by improving care in the least well-performing 80% of maternity units so they match the level of the top 20%. This will be achieved by standardising risk assessment processes at booking, emergency presentation and preterm birth by providing under-resourced maternity staff with validated prediction algorithms and prompts to clinical interventions based on established clinical guidelines. A prototype of the digital tool was developed in September 2020. A feasibility study (evaluating implementation) commenced in January 2021, with a pilot (evaluating impact) due to launch in July 2021.

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The College also continued to produce clinical guidance in a range of formats, as an aid to good clinical practice. In June 2020, accreditation of our Green-top Guideline (GTG) development process by the UK’s National Institute for Health and Care Excellence (NICE) was successfully renewed, and in the last year two new Green-top Guidelines were produced: ‘Maternal collapse in pregnancy and the puerperium’ and ‘Assisted vaginal birth’. In addition, two new Scientific Impact Papers (SIPs) were published: ‘Reproductive implications and management of congenital uterine anomalies’ and ‘Elective egg freezing for non-medical reasons’. Both the GTGs and SIPs were published in BJOG , the College’s academic research journal, with the GTGs consistently among the most downloaded articles each year.

In addition, we established a multidisciplinary Morcellation Taskforce in early 2019, to facilitate the rapid development of guidance on morcellation for myomectomy or hysterectomy. The resultant Consent Advice was published in October 2019.

The College also published four new patient information leaflets this year, to accompany new clinical guidance or to support RCOG clinical priorities: ‘Assisted vaginal birth (ventouse or forceps)’; ‘Care of a third- or fourth-degree tear that occurred during childbirth (OASI)’; ‘Morcellation for myomectomy or hysterectomy’; and ‘When your waters break prematurely’. In addition, a poster on perineal tears during childbirth was produced to support the College’s OASI project.

The National Guideline Alliance (NGA) , commissioned by NICE to produce evidence-based guidelines for health and social care in England and Wales across women’s and children’s health, cancer, mental health and social care, delivered seven new and updated guidelines this year. NICE continued to commission new guidelines from the NGA, whose remit was expanded to include public health guidelines. Five guidelines are planned to be delivered by the NGA in 2020/21.

The College’s women’s health expertise was also recognised in the receipt of a commission by the government of the Republic of Ireland to carry out an independent review into the Irish CervicalCheck screening programme . Our Independent Expert Panel reviewed the screening history of every woman in Ireland diagnosed with cervical cancer via the screening programme since its inception in 2008. The final report was published in December 2019, in close collaboration with the Irish Government, Department of Health and Health Service Executive (HSE), which runs the screening programme. There was significant public interest in the report, with extensive engagement by the College with the media, patient support groups, clinicians and MPs, as well as a select committee briefing.

The RCOG has been offering an invited review service since 2002. In the last five years the service has undertaken over 80 invited reviews including service reviews, reconfiguration reviews, case note reviews and individual reviews. However, the service was paused during 2020 to assess how it can be best developed to meet the changing landscape in which invited reviews operate. The challenges and complexities of delivering high-quality maternity and gynaecology services alongside increasing public interest and media scrutiny have led to the need to evolve our offering, which we intend to relaunch during 2021.

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Strategic goal 3: To connect healthcare professionals, service users and partner organisations to radically improve women’s health care both in the UK and globally

Patient and public involvement continued to play a central role in all of our work, ensuring women’s voices are at the heart of what we do. The RCOG Women’s Network (a formal RCOG committee), Women’s Voices Involvement Panel (an online network of over 600 members of the public) and a wide range of patient support and campaign groups informed the College’s work this year, with over 300 women sharing their perspectives and lived experience through face-to-face and virtual engagement opportunities.

We published three health information webinars on our ‘Women’s Voices at the RCOG’ YouTube channel – on younger women’s health, group B strep, and menopause – to help women understand their health and options for healthcare. We also produced four infographics based on articles published in The Obstetrician & Gynaecologist ( TOG ), our educational and continuing professional development journal, presenting topical issues in women’s health in easy-to-understand formats aimed primarily at a lay audience.

In 2019 the Women’s Network began a conversation around racial inequalities in women’s healthcare, convening a round table of experts to consider what the College could be doing in this important area. This led to our 2020 International Women’s Day event, ‘We need to talk about race’. The event was livestreamed to an audience of over 2,000, with content shared across our social media platforms seeing a 219% increase in engagement with the event compared with the previous year. The learning from the Women’s Network report and International Women’s Day event then contributed to the establishment of a Race Equality Taskforce later in 2020, which aims to tackle disparities in maternity and gynaecology outcomes for Black, Asian and minority ethnic women as well as to address racism within the O&G profession.

We also collaborated with a number of key stakeholders on a variety of social media campaigns and awareness days, including the Royal College of Midwives, the Faculty of Sexual and Reproductive Healthcare, Jo’s Trust, the Eve Appeal and Group B Strep Support. In addition, we commenced a series of Instagram Live webinars/Q&As to connect healthcare professionals and the public and reach new audiences, particularly younger women.

A key focus of our external affairs activity was the publication in December 2019 of our report Better for Women , setting out simple and cost-effective solutions to prevent girls and women falling through the cracks of UK health systems. The report, developed with significant stakeholder engagement from RCOG members, service users and women’s health charities, captured the imagination of policy-makers in both the Westminster and devolved governments, with discussions under way about the development of national women’s health strategies – the central recommendation of the report. Better for Women also received significant attention from the media and from the general public via a cohesive programme of communications and social media activity, with the latter reaching over 140,000 people and a video featuring input from social media influencers, clinicians and women receiving more than 15,000 views across all our channels. The report featured prominently on the news agenda for 24 hours, with our recommendations to improve the provision of contraception services, abortion care and the need for onestop women’s healthcare clinics featuring in almost every national newspaper and the RCOG President interviewed by BBC News, Sky News and the Today programme.

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Abortion has again continued to be a key issue for the College. Following concerted lobbying by the RCOG and stakeholder organisations, new regulations legalising abortion in Northern Ireland came into force on 31 March 2020. This historic change means that women and girls can terminate a pregnancy without fear of being prosecuted, and the possibility of prosecution is also lifted from healthcare workers including our members working in Northern Ireland.

A further success was seen in the College’s work with the Department of Health and Social Care (DHSC) and partner organisations to address problems with the supply of hormone replacement therapy (HRT), following concerns raised by individual women and clinicians about the availability of HRT products. As a result, supply issues started to ease, albeit with intermittent interruptions in supply with some products. We continue to work with the DHSC medical supply team to ensure that HRT products are available for women across the UK, particularly in light of the potential for disruption post-Brexit.

Our ability to influence and improve women’s health globally also continued to flourish, with the Centre for Women’s Global Health in spring 2020 completing the inception phases of the new US$3m Making Abortion Safe programme, funded by a Large Anonymous Donor. This three-year programme is working to increase the capacity of healthcare professionals to address barriers to safe abortion and/or post-abortion care for women and girls globally. Work is now under way to build partnerships, prepare training and identify national abortion champions in five African countries.

Other important projects included an ongoing pilot of Essential Gynaecological Skills training in Bangladesh, and a THET-funded obstetric programme in Myanmar, part of the development of a long-term fundraising pipeline. Future plans include a CPD partnership in Uganda and follow-ups to the Resilience in Obstetric Skills programme.

We also continued to develop and strengthen our relationship with our International Representative Committees (IRCs) . These are representative bodies of College members organised by country, which act as the liaison between the College and members in that country by seeking their views and ensuring that the Committee represents all members’ professional and clinical interests. Regular meetings between the College and each IRC provided opportunities for information and activity updates, forward planning and alignment of strategic direction. The concept of an annual collaboration framework between the College and each IRC was also developed this year, with the aim of defining how both sides will work together in support of the RCOG’s strategic goals. Now in draft form, in 2020–21 they will be rolled out to IRCs and International Liaison (groups of international doctors resident in the British Isles, or doctors with a strong interest in a specific country, who wish to support development of women’s health care in that region).

The global reach of the College’s two journals , BJOG: An International Journal of Obstetrics and Gynaecology ( BJOG ) and The Obstetrician & Gynaecologist ( TOG ), also continued to increase as a result of our publishing partnership with Wiley and new initiatives to manage the ongoing transition from a traditional subscription model to open access publishing. BJOG saw a 13% annual increase in the number of global institutions accessing journal content, while TOG saw a 19% increase. This contributed to an annual increase in the number of article downloads of 45% for BJOG and 35% for TOG .

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This year also saw much discussion within the College about the future of BJOG , specifically regarding ownership of the journal. While the profile, impact and reputation of BJOG has gone from strength to strength since its purchase by the College in 1950, in recent years changes within global academic publishing – specifically the growth of the open access and open science movements and the impact on traditional subscription models – have led to concerns about the ability of the College to continue to support BJOG to reach its full potential. Ultimately, it was agreed by Trustees and Council that the best way to ensure BJOG ’s future sustainability, and the contributions it makes to improving women’s health, was to seek to sell the journal to a large global academic publisher with the reach, experience and scale to help BJOG navigate the fast-changing publishing environment. We were delighted to finalise the sale of BJOG to Wiley, our long-standing journal publishing partner, in August 2020, while also agreeing a long-term relationship between the College and the journal which included ongoing member access to BJOG as part of the member benefits package.

Strategic goal 4: To achieve resilience by developing workforce and financial sustainability, innovation and technological agility

Our move to new premises at 10–18 Union Street , near London Bridge, in December 2019 was a significant achievement for the College this year. The move represented the successful culmination of a three-year programme to leverage the College’s leasehold on our previous premises at Sussex Place into a freehold property, supporting the future sustainability of the organisation in the long term. The move also saw the organisation move to more flexible ways of working, including hot-desking and an expectation that staff would work from home for a portion of the week, which was excellent preparation for the sudden shift to full-time home working as a result of the pandemic in March 2020. The move was supported by a detailed programme of work to ensure the transition was as seamless as possible both for our staff and for our members and other stakeholders. This included the successful relocation of the College library and heritage collection to the Union Street building, enabling greater showcasing of our collection and a purpose-built library for our members and the public.

The move also presented new opportunities to engage with trusts, foundations and our global membership regarding fundraising for our new building. In total, £665,000 was received from three trusts and foundations towards the new building (Wolfson, Dinwoodie and Clore Duffield Foundation), with a further £234,000 raised from individual giving from Fellows and Members.

The move was supported by extensive investment in our IT infrastructure as part of our work to develop and enhance our technological capacity and capability . Key achievements included support for more flexible and remote working and new audiovisual capabilities within the building, with the former providing an excellent foundation for our move to home working in line with government advice in March 2020 in response to the pandemic. This was the impetus for fast-tracking existing digitisation plans, including signing a contract with Pearson Vue for the digitisation of the Part 1 and Part 2 MRCOG and the DRCOG exam, with the first diets delivered in autumn 2020 thanks to an accelerated programme of work.

Work also commenced on a new College website, to improve functionality and user experience in response to extensive research among our members and other key stakeholders. The new site, due to be delivered in autumn 2021, will also offer improved integration with other College systems and infrastructure and a

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refreshed look and feel. Meanwhile, significant work has been undertaken to improve search engine optimisation (SEO) and user experience on the current website, making it quicker to load, easier to use on mobile devices and simpler to search, contributing to a record 3.8 million website visitors between July 2019 and June 2020 – a 97% increase on the previous year. In addition, updates to the cookie policy, and an accompanying widget, ensured full compliance with privacy legislation. Improvements were also made to our email communications with members, with increasing use of automation creating more resourceefficient and sophisticated communications based on user habits, resulting in a 10% improvement in email open rates compared with the previous year.

In response to the disruption caused by the pandemic to the College’s traditional face-to-face, in-person business model for many of our core activities, an ambitious Recovery Programme was established in April 2020. The aim is to build on previous work to develop and improve our digital and IT infrastructure and fast-track digital projects of strategic importance, in order to increase remote access to core College activity and recover core income streams to allow us to deliver our core charitable objectives.

The College’s engagement with, and ability to influence, O&G workforce issues in the UK expanded this year with the introduction of a new RCOG/Health Education England (HEE) Medical Workforce Group. A collaboration between the RCOG and HEE, this group replaced the former Workforce Task Group. In addition, a new RCOG/HEE Workforce Working Group was established to support the development and delivery of a national O&G workforce census and report and a workforce and professionalism strategy. Finally, the RCOG secured a grant of £65,000 from HEE to support the College’s workforce research and advocacy work, witha new position of Workforce Clinical Fellow created to support the delivery and implementation of this work.

Our work to support our own workforce, RCOG staff , also developed via a number of initiatives. A programme of work commenced to review all HR policies, to ensure all policies are up to date and in line with current legislation and best practice. This included a review of the College’s equality and diversity policy as part of our wider work on equality, diversity and inclusion (EDI). Our EDI work also included a review of the mandatory EDI training for all employees, resulting in a change of provider to ensure the needs of the organisation and our staff are being met, and the capture of baseline EDI data for all staff on the College’s HR information system. The latter are included in a new monthly HR dashboard, which also reports on turnover (managed and unmanaged), sickness absence and other issues, benchmarked against external norms.

Future plans

The RCOG’s three-year strategy for 2017–2020 formally came to an end in the 2020 calendar year. From January 2020, work commenced on the development of a new five-year strategy. The first stage was the production of a Case for Development to articulate the ‘as is’ state of the organisation, based on stakeholder engagement, analysis of data where it exists, and an analysis of the current functions of the College. Stakeholder groups – Board of Trustees, Council, Officers, Executive Directors, Senior Leadership Team and the Women’s Network – were asked to state from their own perspective the strengths, weaknesses, opportunities and threats facing the RCOG. Based on the findings, the Case for Development

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set out a number of challenges and opportunities for the College’s future strategic direction. This document was formally approved by the Board of Trustees in May 2020.

Four new strategic goals were then developed, setting out ambitious plans for growth in membership, reach and impact to mitigate the risks and capitalise on the opportunities articulated in the Case for Development. These goals, and the supporting objectives, were approved by the Board of Trustees in November 2020. Year 1 of the strategy has a strong focus on recovery from the impact of the pandemic, to allow us to reach our ultimate aim over the full five-year strategy to achieve the scale necessary to deliver our ambition of improving women’s healthcare worldwide, through our global education, clinical quality and influencing activities.

Strategic goal 1: We will develop our membership offering to best meet the needs of our members globally and the women they serve and expand our reach across the international O&G community

Activities will include:

Strategic goal 2: We will leverage our strong brand and world-renowned reputation to develop partnerships and influence UK and international policy to improve women’s health globally

Activities will include:

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Strategic goal 3: We will become more resilient, accessible and influential through the delivery of a comprehensive digital transformation programme to ensure our research, educational and clinical products have benefit globally and drive up standards in women’s health

Activities will include:

Strategic goal 4: We will ensure our financial and environmental sustainability through delivery of all of the above objectives and contribute to a significantly reduced carbon footprint

Activities will include:

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Royal College of Obstetricians and Gynaecologists

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Financial review

2019/20 overview

These accounts cover the 12-month period from 1 July 2019 to 30 June 2020.

The College’s finances suffered from the impact of COVID-19 in the last four months of the financial year and we closed the year with a net deficit of £675,318 before other recognised gains and losses (2019: £509,157 net surplus). The net loss for the year is broken down between Unrestricted, Restricted and Endowment surplus and before gains and losses on investments as follows:

Year to 30 June 2020 Year to 30 June 2019
Unrestricted (£1,662,423) £634,519
Endowment £21,485 £24,808
Restricted funds £965,620 (£150,170)
Total surplus/ (deficit) (£675,318) £509,157

Following the acquisition, construction and fit-out of 10-18 Union Street, the building was revalued and as a result the value was impaired. The accounts therefore reflect a loss on fixed asset impairment of £7,247,119 (see page 46 SOFA and page 57 for Note 13 to the accounts).

Contributing factors to this year’s results include:

Unrestricted

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Endowment

Restricted

Analysis of income and expenditure

Income

Income for the year totalled £18.8m (2018/19: £21.5m), a decrease of over 12% on 2018/19. The income split between unrestricted and restricted was £13.1m and £5.7m, respectively.

The main source of restricted income in the year was the funding received from the National Institute for Health and Care Excellence (NICE) for the National Guideline Alliance (£3,046,100).

A comparison of the 2018/19 and 2019/20 unrestricted income is shown below.

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Unrestricted income excluding investment income

----- Start of picture text -----
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
2019/20 2018/19
£000s
----- End of picture text -----

Core income streams remain membership, examinations, and conferences and meetings. Gifts and donations generated £0.5m in the year, accounting for 4% of the total unrestricted income.

Expenditure

Expenditure totalled £19.5m in 2019/20 (2018/19: £21m), a decrease of 7.1% on the previous year. This split between unrestricted and restricted expenditure as £14.8m and £4.7m, respectively.

As in the case of the decline in income attributed to COVID-19, much of the reduction in expenditure was related to a decline in unrestricted activity, attributed to those areas severely affected by the pandemic, e.g. conferences, Congress, events and Trading, where expenditure was reduced by £0.5m compared with 2018/19. Strict cost control measures introduced in response to the pandemic as part of managing the College’s liquidity also contributed to the reduction in expenditure.

Support costs totalled £6.1m representing 31.8% of total expenditure. These support costs are split over the College’s charitable activities using the percentages shown in note 1(i) to the accounts. Support costs include expenditure related to back office functions, premises and facilities and pensions. Governance costs were £140k (0.7%) compared with £96k in 2018/19 (0.5%).

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Balance sheet

Total funds as at 30 June 2020 stand at £52,468,474. £43.8m of this is in tangible fixed assets, £14m in investments, further additions of £8.9m in current assets, which are reduced by current liabilities of £5.9m and long-term liabilities of £6.9m. In addition, the pension deficit related liability of £0.9m brings the overall net assets to £52,468,474.

The long-term liabilities include the outstanding bank loan liability of £6,872,727 in relation to the balance of the loan facility taken out to complete the purchase of Union Street.

The College was in breach of its EBITDA loan covenant as a result of the financial impact of the COVID-19 pandemic. However, the College’s lender, Barclays Bank PLC, issued a waiver for this breach in view of the pandemic on 12[th] October 2020.

Reserves

78% of the College’s total reserves are in the form of free/general reserves, 15% in restricted funds and 7% in capital funds.

Designated funds

Designated funds reflect a total of £35,053,043 (2019: £43,644,276). Fixed assets represent £33,768,459 of the designated funds (see note 20a and 23a for complete breakdown), including the heritage fund of £300,000, representing the valuation of historic donations of furniture, books, pictures and equipment. Details of all remaining funds are included in note 22 to 23 on pages 63 to 67 of the Annual Accounts.

Policy on general reserves

RCOG Trustees have established a reserves policy to protect the organisation from fluctuations in income, to properly manage risk and to be capable of realising unforeseen opportunities that may arise from time to time. Trustees consider a reasonable level of reserve to be essential in supporting the College’s ongoing commitments and its contractual obligations.

The RCOG’s reserves policy reflects financial risks and commitments, including the following:

The Trustees reviewed these areas and concluded that the minimum free reserve required for this financial period is £4,293,000. This level of reserve will be reviewed annually to ensure that it is sufficient to manage risk within the business.

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The total funds balance of £52,468,474 (2019: £59,644,496) includes endowments, restricted funds, designated funds and general funds. Only a small proportion of the reserve is backed by unrestricted, freely realisable cash.

At 30 June 2020, the free reserves amounted to £4,746,949 (2019: £6,233,510). This exceeds the required free reserve of £4.3m by £0.4m. Trustees consider the current level of free reserve to be within an acceptable margin.

The total of free reserves is calculated as follows:

RESERVES 2019/20 2018/19
Total charity funds 52,468,474 59,644,496
Less permanent endowment funds -2,627,417 -2,602,538
Less expendable endowment funds -1,337,485 -1,303,702
Less restricted income funds -7,702,133 -6,684,221
Less designated funds -27,195,732 -43,644,276
Add pension reserve 906,000 1,463,000
Less general funds represented by
plant,furniture and equipment		 -9,764,758 -639,249
Total free reserves £4,746,949 £6,233,510

The closing cash balance as at 30 June 2020 was £7,489,840 (2019: £13,156,362). Investments valued at £14,056,309 (2019: £13,605,895) are funds invested in short and medium term vehicles which generate a small but steady income.

Investment policy

The key investment objectives within RCOG’s formal investment policy statement are as follows:

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the purchase of a residential freehold to provide Officer accommodation. The key objective for these funds is capital preservation with a return deemed reasonable within that context.

The RCOG considers and reviews the ethical dimensions of any direct investments it makes, specifically in relation to its values and charitable objects. The RCOG understands that in its use of pooled and diversified growth funds, it is unable to control the detailed stock allocation. Following Board approval of the new fiveyear strategy in November 2020, and the College’s commitment to financial and environmental sustainability, it was agreed to undertake a strategic review of the investment policy in 2021.

Policy for permanent endowment funds

The total return approach is applied to 7 of the permanent endowments. This transfer allows the College to use any gains made on those endowments as income. The policy is to treat the calculated present value of the original gift as the ’core capital‘ that will remain as an endowment. The remaining value is the ’unapplied return‘. Out of that, the College is able to set aside 5% each year, available to spend on restricted projects, this being the ’applied return‘. Details of these funds are included in note 22 on pages 63 to 65.

Fund management

Investment holdings returned an income of £357,797 and a capital gain of £200,415 in the year. The total return therefore was £558,212, which equates to a return of 4.1% on the opening balances of £13,605,894. Net additions in the year were £250,000.

The total market investment portfolio increased by 3.3%, from £13,605,895 at 1 July 2019 to £14,056,309 at 30 June 2020. The net additions of £250,000 were part of the increase, representing 1.8% of the growth; the remaining 1.5% represents appreciation and capital growth of the portfolio.

The RCOG Investment and Advisory Panel has continued to monitor the effectiveness of the RCOG’s investments in order to obtain maximum growth within the remit of its investment policy and risk tolerance.

Further details on investments can be found in note 15 on page 58 of the Annual Accounts.

Fundraising

The RCOG is registered with the Fundraising Regulator and has established fundraising policies using the Code of Fundraising Practice as a guideline. 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.

We aim to follow best practice in our fundraising activities and to ensure that communications are carried out in accordance with members’ contact preferences.

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A complaints procedure is in place to ensure any complaints received are dealt with promptly and handled in accordance with our policy.

Pensions

The College operates two pension schemes: the Defined Contribution Scheme (DCS), which is open to all staff, and the Defined Benefit Scheme (DBS), both operated through a separate trustee-administered fund. In May 2014, the College introduced an auto-enrolment section within the DCS. The DBS was closed to new members in 2003 and future accrual for active members ceased from 31 December 2014. The triennial valuation of the DBS to 31 March 2016 was concluded and revealed a funding shortfall of c£4.98m. A 10year repayment plan was agreed with the employers (International Federation of Gynaecology and Obstetrics, the Faculty of Sexual and Reproductive Healthcare and the RCOG), and the RCOG made an initial payment in 2017 of £862k with further deficit repayments scheduled from 2020.

At 30 June 2020, the College’s share of the accounting liability was £906,000 (2019: £1,463,000). Further details of the schemes can be found in note 25 on pages 68 to 70 of the Annual Accounts.

Performance of Trading company

The College has a commercial arm, RCOG Trading Limited, whose principal activities include the hire of rooms and the provision of catering facilities and accommodation under a contract with Graysons. This contractual partnership continued following the move to Union Street. However, the planned pause in this activity as a result of the move from Sussex Place, and a delay to fully opening Union Street to trading activities, was extended due to the COVID-19 pandemic and associated restrictions. This had a significant adverse impact on trading activities with operations coming to a complete standstill with effect from March 2020.

The Trading company generated a surplus of £142,424 in the year to 30 June 2020 (2019: £493,597), which was gifted in its entirety to the RCOG charity. These results are consolidated into the accounts of the College. Overall turnover decreased from £1,620,979 in 2019 to £693,842 in 2020.

Going concern

Trustees have been closely monitoring and considering the ongoing impact of the COVID-19 pandemic on the College and its activities. The College has prepared budgets and cashflow forecasts through to March 2022, taking into account the associated risks and uncertainties, and Trustees are satisfied that the College can continue operating for the foreseeable future and that there are no material uncertainties around going concern status for at least 12 months following approval of these financial statements.

Auditors

Sayer Vincent LLP were re-appointed as the charity’s auditors during the year and have expressed their willingness to continue in that capacity.

33

Royal College of Obstetricians and Gynaecologists

Report of the Trustees

For the year ended 30 June 2020

Consolidated accounts statement

This annual report and accounts have been approved by the Trustees on 4 March 2021 and are signed on their behalf by:

Baroness Tessa Blackstone Chair

34

Royal College of Obstetricians and Gynaecologists

Report of the Trustees

For the year ended 30 June 2020

Governance structure

----- Start of picture text -----
Appointments and Disciplinary, Removals and Executive Audit and Risk
Remuneration Committee Reinstatements Committee Committee Committee
Information Governance
Finance and General Management Group
(IGMG)
Purposes Committee
BOARD OF
TRUSTEES
BJOG Editorial Board Equality and
Diversity Committee
Investment Advisory Panel
Journals Business
Development Committee COUNCIL
Education Board
TOG Editorial Board
Advanced Training
Committee
Membership
Clinical Quality Board
Board Congress Committee
Global Health Board Core Curriculum
Committee
Clinical Quality
DRCOG Sub-Committee
Northern Ireland Assurance Group
MTI Committee Committee Guidelines Education Quality
Scottish Committee Assurance Committee
Trainees’ Global
Health Committee Committee Joint Standing Equivalence Advisory
Welsh Executive Committee for Group
Committee Patient Safety Examination &
Lindsay Stewart Assessment Committee
Committee for
Part 1 MRCOG Sub-
Audit & Clinical
Committee
Academic Board Informatics
Part 2 MRCOG EMQ Sub-
NGA Consortium
Committee
Board
Research Committee Part 2 MRCOG SBA Sub-
Patient Information
Committee
Committee
Part 3 MRCOG Clinical
Scientific Advisory Assessment Sub
Committee Committee
RCOG Women’s Professional
Network
Ethics Development Committee
Committee Specialty Education
Advisory Committee
eLearning Editorial Board
Subspecialty Committee
Trainees’ Committee
----- End of picture text -----

35

Royal College of Obstetricians and Gynaecologists

Report of the Trustees

For the year ended 30 June 2020

The Board of Trustees, chaired by the President up to September 2019 and now by an independent Chair, combines both clinical leadership with wider expertise essential to charity governance. Its membership includes six O&G Trustees – the President, Senior Vice President, Vice President Workforce and Professionalism, a Member or Fellow elected from Council and two Members or Fellows of the College in active practice. The Board also currently includes four Trustees from a range of professional backgrounds.

The Board of Trustees provides the required scrutiny to the financial, business and legal matters of the College and is the ultimate decision making body. Day to day management of College business is led by the Executive team. The Executive team is made up of the Chief Executive and the Executive Directors as listed on page 4.

The governance of the College is supported through Council, which develops policies and activities on all clinical and professional matters for women’s health. Council, chaired by the President, meets on 6 occasions during each year. Its members include the Officers of the College, Fellows and Members of the College, including 20 elected Fellows and 13 elected Members, 2 Trainee representatives, the Chair of the Academic Board, the Chair and Vice Chairs of the Women’s Network and President of the Faculty of Sexual and Reproductive Healthcare.

The Finance and General Purposes Committee has delegated power to perform, on behalf of the Trustees, matters of specified business. It is responsible for the financial scrutiny of the College, including critically reviewing management accounts and recommending the annual budget to Trustees for approval.

The Audit and Risk Committee (ARC) provides the Trustees with an independent assessment of the College’s statutory financial position and accounting affairs, with the objective of providing further assurance of the quality and reliability of the financial information. It also oversees the systems of governance, risk management and internal control across the whole of the College’s activities. It meets not less than three times a year.

In the financial year to 30 June 2020, the ARC oversaw the implementation of the audit plan. Two internal audits were conducted during this year. The audits covered the Board Assurance Framework and risk management arrangements and a review of the Data Security and Protection Toolkit prior to submission to NHS Digital. Actions arising have been recorded and addressed by management and reported to and monitored by the ARC.

The RCOG encourages diversity on all College Boards and Committees. As an organisation the RCOG is committed to the principles of equality, diversity and inclusion (EDI). In the year a draft action plan was developed to address how we monitor our performance on EDI as well as our internal governance arrangements. This will lead to a review and refresh of the remit of the Equality and Diversity Committee in early 2021. This work complements the work being led by the President through the Race Equality Taskforce and work to ensure that our recruitment processes encourage EDI and the organisation captures and learns from staff experience.

36

Royal College of Obstetricians and Gynaecologists

Report of the Trustees

For the year ended 30 June 2020

The Board commissioned a Governance Review as part of a range of actions to mitigate the strategic risk that the College’s governance structures and processes do not facilitate appropriate performance monitoring and management to achieve the College’s strategic objectives, efficient running of the College, high quality delivery of services and regulatory compliance. The review was presented to the Board in May 2020 and Council in July 2020. The three themes in the recommendations were:

  1. Ensuring effective implementation of the organisational strategy.

  2. Ensuring clarity on delegation and decision making.

  3. Ensuring greater transparency on the work of College governing bodies.

Thirty-six recommendations were proposed and prioritised. As part of work to prioritise College activity during COVID-19, the Board of Trustees agreed to delay implementation of the recommendations to commence from September 2020 and finish by the end of June 2021. Regular reports on implementation will be provided to the Board of Trustees.

In the period covered by this report, two serious incidents were reported to the Charity Commission. One incident was a data protection breach which was also reported to the Information Commissioners’ Office and the Charity Commission who confirmed they were satisfied with trustee management of the incident. The second incident was a report on the forecast impact of COVID-19 on the College.

Trustee appointment and responsibilities

The Trustees are responsible for preparing the report 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 the affairs of the College and the group and of the incoming resources and application of resources of the group for that period. In preparing these financial statements, Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the College 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 Charter, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the College and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

37

Royal College of Obstetricians and Gynaecologists

Report of the Trustees

For the year ended 30 June 2020

Trustees are responsible for the maintenance and integrity of the College and financial information included on the College’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Trustees confirm that, so far as they are aware, there is no relevant audit information of which the College’s auditors are unaware. They have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the College’s auditors are aware of that information.

Training and induction of Trustees

New Trustees are inducted into their role and College business through an induction programme which includes briefings from the Chief Executive, President and key staff. As part of this process, information is provided about their roles and duties as charitable Trustees, as well as other supporting information about the governance of the College. Trustees who joined in the year also received a briefing on the role of Trustee from the external auditors Sayer Vincent.

As part of the Governance Review, a Board Evaluation Survey was carried out to assess composition and processes, board culture, self-reflection and knowledge and skills assessment. Trustees were asked to comment on the degree to which they agreed or disagreed with a number of statements and space was provided for comments. The Board discussed the output from the survey and agreed areas for development in the coming year.

The Chief Executive is appraised by the Chair and President on an annual basis.

Remuneration

The College recognises the importance of attracting and retaining the right skills to ensure we can deliver our objectives.

The RCOG operates a graded pay structure and all roles are subject to an evaluation process to determine the applicable pay grade.

The objectives of the evaluation process are as follows:

The College operates an annual appraisal system to evaluate individual performance. This performance evaluation process enables an individual to move up their pay grade. In addition to this the Board annually reviews all pay levels and, if affordable, awards an annual uplift. It is recommended that this reflects RPI (capped at 3%), however the Board can choose to exceed this.

38

Royal College of Obstetricians and Gynaecologists

Report of the Trustees

For the year ended 30 June 2020

In 2020 an award of £100 for all staff and a salary scale increment increase for all staff on grades 2 and 3 was agreed by the Appointments and Remuneration Committee. In addition, two extra days of leave were approved in recognition of employees’ hard work during 2020. It was also agreed to align the performance review cycle with the financial year.

The Board governs the remuneration of Executive Directors via the Appointments and Remuneration Committee. Information on those employees paid over £60,000 in the year can be found in note 9 to the accounts. Trustees are not remunerated as these are voluntary roles.

Charity and related parties

Related party transactions for the year are split as follows: sales ledger £610,748 and purchase ledger £11,300. These transactions related to the chairing of committees, contributions to BJOG content, payroll recharges and hire of event space. Full details of these payments can be found in note 11 to the accounts.

Principal risks and uncertainty

The Audit and Risk Committee, as part of its duties, oversees risk management activity at the College. The committee has an assurance and oversight role to provide the Board of Trustees with the necessary assurance on the adequacy and effectiveness of the College’s risk management framework. Risk management is viewed as a dynamic cycle of assessment, action and review. The Audit and Risk Committee reports directly to the Trustees.

During the year a risk management policy was introduced to support work to build a strong risk management culture and aid the delivery of our strategy. The policy provides an approach to managing risk, setting out common requirements and definitions, and details specific responsibilities of staff, management and governance bodies. The risk management framework includes a Board Assurance Framework which is monitored and updated by the Executive Directors and reported to the Audit and Risk Committee and the Board of Trustees on a quarterly basis. The corporate risk register, which focuses on key operational risks, operates alongside this framework. The register is regularly updated by the Senior Leadership Team and reviewed by Executive Directors, with higher level risks reported to Audit and Risk Committee at their quarterly meetings.

The Board Assurance Framework and Corporate Risk Register were updated in the year to reflect the impact of the COVID-19 pandemic on College activity and the key controls and actions introduced to address this.

The most significant risks identified in the Board Assurance Framework are:

Key risk areas Key controls
Financial instability due to a lack of diverse income
streams, lack of revenue growth and/or an
uncontrolled cost base, which affects our long-
term sustainability and capacity to deliver our
vision. The COVID-19pandemic and associated		 Development of a new five-year strategy,
Recovery Programme with business case for
investment, enhanced spending controls, close
monitoring of cashflow, robust budget setting
process,focus on business development roles

39

Royal College of Obstetricians and Gynaecologists

Report of the Trustees

For the year ended 30 June 2020

cessation of income generating activities has
further highlighted the lack of diverse income
streams and the inability to deliver services
digitally.		 within the organisation and sound financial
principles to provide clear guidance for the Senior
Leadership Team.
Lack of organisational resilience and/or investment
means that events cause disruption/cessation to
key systems or activities and a loss of front-line
services to staff, members and trainees.		 Development of a new five-year strategy, Recovery
Programme with business case for investment
including implementation of virtual exams,
organisational business continuity and incident
response framework, buildings policies and
protocols in place including building related
maintenance and support contracts, project
management framework, standard operating
procedures, robust IT systems and Cyber Essentials
Plus accreditation
College fails to provide services and products that
are of high quality, are fit for purpose, meet the
changing needs of members and trainees and are
sustainable, leading to reduced use or client
satisfaction and an adverse impact on patient
safety or quality of care.		 Development of a new five year strategy,
ePortfolio project recovery project and
governance, Recovery Programme, digital
examination implementation, membership
satisfaction survey, project management guidance
with effective project/programme board
monitoring of new projects and initiatives,
effective board scrutiny, equality, diversity and
inclusion policy and the use of PSED data, process
maps, quality assurance processes and standard
operating procedures, project lessons learnt
capture and sharing.
Adverse publicity from an untoward event
damages our reputation and stakeholder
confidence negatively affecting support received
and/or income generated.		 Information governance policies and guidelines,
regular reports to donors on progress against plan,
due diligence exercises prior to and throughout the
programme lifecycle and knowledge and expertise
within External Affairs team.

Sustainability

The College is committed to environmental sustainability.

In November 2020 the College moved from Sussex Place to a newly refurbished building at Union Street. Sustainability planning was at the forefront of our design and build process. The College decided to re-use an existing property, located next to a major public transport hub, thus saving on carbon and natural materials. We used the BREEAM standard which encompasses a wide range of factors, from noise pollution, water use, energy consumption, to the plan for how people will commute to the building, as well as governing design and construction decisions. In our new building we have solar water heating and photovoltaic panels on the roof, which generate low carbon hot water and electricity.

40

Royal College of Obstetricians and Gynaecologists

Report of the Trustees

For the year ended 30 June 2020

Prior to the pandemic, average monthly energy consumption fell 34% for electricity and 83% for gas in the new College building. With the building effectively closed from end March 2020 as a result of the pandemic, energy consumption fell still further in the final months of the financial year.

In our post COVID-19 planning we will continue to promote cycling and walking in a car free building, with excellent showers and cycling facilities available in Union Street. We are looking closely at our waste streams making sure that we phase out the use of single use plastics, reduce the amount of waste and increase recycling rates.

We monitor gas and electricity use in our College building at 10-18 Union Street. Post pandemic we plan to measure business travel, paper waste and water. The College electricity contract changed in December 2020 to a 100% renewable tariff.

Nature of governing document

The RCOG is governed by a Royal Charter, granted in 1947, and Regulations made pursuant to the Charter. The Charter was renewed in December 2003, amended in 2012 and the College is bound by its regulations. In 2010, the College was separately registered as a charity in Scotland.

Public benefit

The Trustees confirm that they have considered the Charity Commission’s guidance on Public Benefit in determining the strategy for achieving the charity’s aims and objectives. The identifiable benefits women receive include the specialist clinical care made possible through the education of doctors. Women also benefit from service improvements through our focus on clinical quality, our participation in research and audit and our collaborative work with other educational providers, service bodies and policy makers in health. The number of doctors successfully qualifying in the specialty and the tangible use of our standards to improve care confirm that these benefits are being achieved. The general public and health professionals can access information via our website.

While the College is a professional and educational body, the ultimate beneficiaries of our work are women and their families in all the countries where our clinicians work and where the College delivers targeted help, including in lower-resourced regions.

41

Independent auditor’s report

To the trustees of

Royal College of Obstetricians and Gynaecologists

Independent auditor’s report to the trustees of Royal College of Obstetricians & Gynaecologists

Opinion

We have audited the financial statements of Royal College of Obstetricians & Gynaecologists (the ‘parent charity’) for the year ended 30 June 2020 which comprise the consolidated statement of financial activities, the group and parent charity balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

42

Independent auditor’s report

To the trustees of

Royal College of Obstetricians and Gynaecologists

Other information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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. In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees 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 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.

43

Independent auditor’s report

To the trustees of

Royal College of Obstetricians and Gynaecologists

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with regulations made under that Act.

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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

44

Independent auditor’s report

To the trustees of

Royal College of Obstetricians and Gynaecologists

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the parent charity’s trustees as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the parent 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 parent charity and the parent charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

10 March 2021

Sayer Vincent LLP, Statutory Auditor

Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

45

Royal College of Obstetricians and Gynaecologists

Consolidated statement of financial activities

For the year ended 30 June 2020

2020 2019
Unrestricted Endowment Restricted Total Unrestricted Endowment Restricted Total
Note £ £ £ £ £ £ £
Income from:
Charitable activities
Donations and legacies 2 496,059 - 619,733 1,115,792 422,548 - 568,478 991,026
Charitable activities 3 11,479,447 - 5,001,535 16,480,982 13,708,425 - 4,519,306 18,227,731
Other trading activities 4 836,358 - - 836,358 1,832,891 - - 1,832,891
Investments 5 257,542 21,485 78,771 357,798 270,425 24,808 112,468 407,701
Gain on lease disposal and other income - - - - - - - -
Total income 13,069,406 21,485 5,700,039 18,790,930 16,234,289 24,808 5,200,252 21,459,349
Expenditure on:
Raising funds 7 - - - - - - - -
Charitable activities
Raising funds 7 356,841 - - 356,841 329,165 - - 329,165
Charitable activities 7 13,770,883 - 4,734,419 18,505,302 14,156,221 - 5,350,422 19,506,643
Other trading activities 7 604,105 - - 604,105 1,114,384 - - 1,114,384
Total expenditure 7 14,731,829 - 4,734,419 19,466,248 15,599,770 - 5,350,422 20,950,192
Net income / (expenditure) before net gains / (losses) on
investments (1,662,423) 21,485 965,620 (675,318) 634,519 24,808 (150,170) 509,157
Net gains / (losses) on investments 110,946 40,604 48,865 200,415 284,226 167,784 92,084 544,094
Net income / (expenditure) 8 (1,551,477) 62,089 1,014,485 (474,903) 918,745 192,592 (58,086) 1,053,251
Transfers between funds 21-23 - (3,427) 3,427 - 124,979 (156,008) 31,029 -
Net income / (expenditure) before other recognised gains and
losses (1,551,477) 58,662 1,017,912 (474,903) 1,043,724 36,584 (27,057) 1,053,251
(Losses) on impairment of fixed assets 13 (7,247,119) - - (7,247,119) - - - -
Actuarial gains / (losses) on defined benefit pension schemes 25 546,000 - - 546,000 (207,000) - - -
Net movement in funds (8,252,596) 58,662 1,017,912 (7,176,022) 836,724 36,584 (27,057) 846,251
Reconciliation of funds:
Total funds brought forward 49,054,035 3,906,240 6,684,221 59,644,496 48,217,311 3,869,656 6,711,278 58,798,245
Total funds carried forward 21-23 40,801,439 3,964,902 7,702,133 52,468,474 49,054,035 3,906,240 6,684,221 59,644,496

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Notes 21-23 to the financial statements.

46

Royal College of Obstetricians and Gynaecologists

Balance sheets

As at 30 June 2020

2020
2019
Note
£
£
Fixed assets:
13
43,833,217
45,209,466
15
14,056,309
13,605,895
57,889,526
58,815,361
Current assets:
5,494
9,792
16
1,434,197
5,801,952
7,489,847
13,156,362
8,929,538
18,968,106
Liabilities:
17
(6,571,863)
(16,675,971)
2,357,675
2,292,135
Creditors: amount due after one year
18
(6,872,727)
-
53,374,474
61,107,496
25
(906,000)
(1,463,000)
52,468,474
59,644,496
20
2,627,417
2,602,538
1,337,485
1,303,702
3,964,902
3,906,240
7,702,133
6,684,221
35,053,043
43,644,276
(906,000)
(1,463,000)
6,654,396
6,872,759
Total unrestricted funds
40,801,439
49,054,035
52,468,474
59,644,496
Net assets excluding pension asset / (liability)
Stock
Debtors
Funds:
Restricted income funds
Unrestricted income funds:
Designated funds
Pension reserve
General funds
Capital funds:
Permanent endowment funds
Expendable endowment funds
Creditors: amounts falling due within one year
Net current assets / (liabilities)
Total net assets
Defined benefit pension scheme asset / (liability)
Investments
Cash at bank and in hand
Tangible assets
The group
Total charity funds		 2020
2019
Note
£
£
Fixed assets:
13
43,833,217
45,209,466
15
14,056,309
13,605,895
57,889,526
58,815,361
Current assets:
5,494
9,792
16
1,434,197
5,801,952
7,489,847
13,156,362
8,929,538
18,968,106
Liabilities:
17
(6,571,863)
(16,675,971)
2,357,675
2,292,135
Creditors: amount due after one year
18
(6,872,727)
-
53,374,474
61,107,496
25
(906,000)
(1,463,000)
52,468,474
59,644,496
20
2,627,417
2,602,538
1,337,485
1,303,702
3,964,902
3,906,240
7,702,133
6,684,221
35,053,043
43,644,276
(906,000)
(1,463,000)
6,654,396
6,872,759
Total unrestricted funds
40,801,439
49,054,035
52,468,474
59,644,496
Net assets excluding pension asset / (liability)
Stock
Debtors
Funds:
Restricted income funds
Unrestricted income funds:
Designated funds
Pension reserve
General funds
Capital funds:
Permanent endowment funds
Expendable endowment funds
Creditors: amounts falling due within one year
Net current assets / (liabilities)
Total net assets
Defined benefit pension scheme asset / (liability)
Investments
Cash at bank and in hand
Tangible assets
The group
Total charity funds		 2020
2019
Note
£
£
Fixed assets:
13
43,833,217
45,209,466
15
14,056,309
13,605,895
57,889,526
58,815,361
Current assets:
5,494
9,792
16
1,434,197
5,801,952
7,489,847
13,156,362
8,929,538
18,968,106
Liabilities:
17
(6,571,863)
(16,675,971)
2,357,675
2,292,135
Creditors: amount due after one year
18
(6,872,727)
-
53,374,474
61,107,496
25
(906,000)
(1,463,000)
52,468,474
59,644,496
20
2,627,417
2,602,538
1,337,485
1,303,702
3,964,902
3,906,240
7,702,133
6,684,221
35,053,043
43,644,276
(906,000)
(1,463,000)
6,654,396
6,872,759
Total unrestricted funds
40,801,439
49,054,035
52,468,474
59,644,496
Net assets excluding pension asset / (liability)
Stock
Debtors
Funds:
Restricted income funds
Unrestricted income funds:
Designated funds
Pension reserve
General funds
Capital funds:
Permanent endowment funds
Expendable endowment funds
Creditors: amounts falling due within one year
Net current assets / (liabilities)
Total net assets
Defined benefit pension scheme asset / (liability)
Investments
Cash at bank and in hand
Tangible assets
The group
Total charity funds		 2020
2019
£
£
43,833,217
45,209,466
14,056,311
13,605,897
The charity		 2020
2019
£
£
43,833,217
45,209,466
14,056,311
13,605,897
The charity
57,889,526
5,494
1,434,197
7,489,847		 58,815,361
9,792
5,801,952
13,156,362		 57,889,528
2,855
1,397,526
7,488,129		 58,815,363
6,145
5,596,334
13,153,155
8,929,538
(6,571,863)		 18,968,106
(16,675,971)		 8,888,510
(6,530,837)		 18,755,634
(16,463,501)
2,357,675 2,292,135 2,357,673 2,292,133
(6,872,727)
53,374,474
(906,000)		 -
61,107,496
(1,463,000)		 (6,872,727)
53,374,474
(906,000)		 -
61,107,496
(1,463,000)
52,468,474 59,644,496 52,468,474 59,644,496
2,627,417
1,337,485		 2,602,538
1,303,702		 2,627,417
1,337,485		 2,602,538
1,303,702
3,964,902 3,906,240 3,964,902 3,906,240
7,702,133 6,684,221 7,702,133 6,684,221
35,053,043
(906,000)
6,654,396		 43,644,276
(1,463,000)
6,872,759		 35,053,043
(906,000)
6,654,396		 43,644,276
(1,463,000)
6,872,759
40,801,439 49,054,035 40,801,439 49,054,035
52,468,474 59,644,496 52,468,474 59,644,496

Approved by the board of management on 4 March 2021 and signed on their behalf by

Baroness Tessa Blackstone Linda Nash Chair Trustee

47

Royal College of Obstetricians and Gynaecologists

Consolidated statement of cash flows

For the year ended 30 June 2020

Reconciliation of net income / (expenditure) to net cash flow from operating activities

2020 2019
£ £
(474,903) 1,053,251
Net income for the reporting period
(as per the statement of financial activities)
Depreciation charges 1,073,929 287,431
(Gains)/losses on investments (200,415) (544,094)
Dividends and interest from investments (357,798) (407,701)
(Increase)/decrease in stocks 4,298 3,299
(Increase)/decrease in debtors 4,367,755 9,109,696
Increase/(decrease) in creditors (231,380) 1,480,257
Pension adjustments (11,000) 136,000
Net cash provided by operating activities 4,170,486 11,118,139
2020 2019
£ £ £ £
Cash flows from operating activities
Net cash provided by / (used in) operating activities 4,170,486 11,118,139
Cash flows from investing activities:
Dividends, interest and rents from investments 357,798 407,701
Purchase of fixed assets (6,944,799) (6,454,561)
Proceeds from sale of investments 300,929 2,758,228
Purchase of investments (550,929) (954,798)
Net cash provided by / (used in) investing activities (6,837,001) (4,243,430)
Cash flows from financing activities:
Cash outflows from repayment of borrowing (3,000,000) (3,000,000)
Net cash provided by / (used in) financing activities (3,000,000) (3,000,000)
Change in cash and cash equivalents in the period (5,666,515) 3,874,709
-
Cash and cash equivalents at the beginning of the period 13,156,362 9,281,653
Cash and cash equivalents at the end of the period 7,489,847 13,156,362
Analysis of cash and cash equivalents and of net debt
Other non-cash At 30 June
At 1 July 2019 changes 2020
£ £ £
Cash at bank and in hand 13,156,362 (5,666,515) 7,489,847
a
Total cash and cash equivalents		 13,156,362 (5,666,515) 7,489,847
Loans falling due within one year 10,000,000 (9,872,727) 127,273
Loans falling due after more than one year - 6,872,727 6,872,727
Total 10,000,000 (3,000,000) 7,000,000

48

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

The Royal College of Obstetricians and Gynaecologists is incorporated by Royal Charter as a charity registered with the Charity Commission in England & Wales and OSCR in Scotland. The registered office address is 10-18 Union Street, London, SE1 1SZ.

The accounts have been prepared in accordance with the Statement of Recommended Practice: 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) (Charities SORP FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

The accounts 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 on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

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

These financial statements consolidate the results of the charity and its wholly-owned subsidiary RCOG Trading Limited on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented as the summary of the result for the period is disclosed in the notes to the accounts.

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

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

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

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

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

Endowment funds are split between permanent endowments and expendable endowments. The capital of the permanent endowments must be maintained, although the income can be utilised in accordance with the terms of the endowment. The total return approach is applied to 7 of the College's permanent endowments. The policy is to treat the calculated present value of the original gift as the "core capital" that remains an endowment. The remaining value is the unapplied return and from this the College can set aside 5% each year for use on restricted projects. This represents the "applied return".

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.

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

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

49

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

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

Conferences and meetings 12%
Examinations 9%
International initiatives 7%
Membership Services 43%
Clinical Quality 11%
Education and training 11%
BJOG 3%
Other trading activities 4%

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

j) Operating leases

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

k) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £10,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Freehold land not depreciated
Freehold buildings 50 years
Plant 10 years
Furniture and fittings 5 years
Computer Equipment 3 years

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 charity does not acquire put options, derivatives or other complex financial instruments.

Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks.

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Debtors due in greater than one year have been discounted to net present value.

p) Cash at bank and in hand

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

q) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

50

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

s) Pensions

The defined benefit pension scheme is recognised and treated in accordance with section 28 of FRS 102.

The defined benefit pension scheme assets are measured using market values. The scheme's liabilities are measured using the projected units actuarial method and are discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability. The current service cost and any increase in the present value of the liabilities within the College's defined benefit scheme expected to arise from employee service in the period is allocated to the respective expenses category (as outlined above) in respect to staff costs.

Actuarial gains and losses, in respect of the College's defined benefit scheme are recognised in the Statement of Financial Activities in recognised gains and losses for the period.

Contributions in respect of the College's defined benefit scheme are recognised in the Statement of Financial Activities in recognised gains and losses for the period.

The College also operates a defined contribution scheme. The assets of this 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 the College to the fund. The College has no liability under this scheme other than for the payment of those contributions.

Income from donations and legacies
Legacies
Gifts & Donations		 Unrestricted
£
496,059
-		 Endowment
£
-
-		 Restricted
£
619,733
-		 2020
Total
£
1,115,792
-		 Unrestricted
£
356,298
66,250		 Endowment
£
-
-		 Restricted
£
568,478
-		 2019
Total
£
924,776
66,250
496,059 - 619,733 1,115,792 422,548 - 568,478 991,026

Gifts & donations represent income from fundraising activities.

3 Income from charitable activities

Income from charitable activities
Conferences, Congress and meetings
Sub-total from charitable activities
BJOG
Examinations
International initiatives
Membership services
Clinical quality
Education and training initiatives
National Guideline Alliance		 Unrestricted
£
984,369
4,279,062
77,500
4,643,987
167,729
386,487
-
940,313		 Endowment
£
-
-
-
-
-
-
-
-		 £
-
-
-
-
1,702,413
253,022
3,046,100
-
Restricted		 2020
Total
£
984,369
4,279,062
77,500
4,643,987
1,870,142
639,509
3,046,100
940,313		 Unrestricted
£
3,946,636
3,550,100
172,500
4,266,778
446,945
369,384
-
956,082		 Endowment
£
-
-
-
-
-
-
-
-		 £
-
-
-
-
929,630
-
3,589,676
-
Restricted		 2019
Total
£
3,946,636
3,550,100
172,500
4,266,778
1,376,575
369,384
3,589,676
956,082
11,479,447 - 5,001,535 16,480,982 13,708,425 - 4,519,306 18,227,731

4 Income from other trading activities

Venue hire and catering
Accommodation and service charges		 Unrestricted
£
665,555
170,803		 Endowment
£
-
-		 £
-
-
Restricted		 2020
Total
£
665,555
170,803		 Unrestricted
£
-
-		 Endowment
£
1,576,159
256,732		 £
-
-
Restricted		 2019
Total
£
1,576,159
256,732
836,358 - - 836,358 - 1,832,891 - 1,832,891
Income from investments
Newton Real Return Income Fund
BIJF Dynamic Diversified Growth Fund
Sarasins
Other Investments		 Unrestricted
£
-
24,154
189,401
43,987		 Endowment
£
17,207
4,278
-
-		 £
78,771
-
-
-
Restricted		 2020
Total
£
95,978
28,432
189,401
43,987		 Unrestricted
£
-
83,393
164,338
22,694		 Endowment
£
18,746
6,062
-
-		 £
112,468
-
-
-
Restricted		 2019
Total
£
131,214
89,455
164,338
22,694
257,542 21,485 78,771 357,798 270,425 24,807 112,468 407,701

51

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

6 Trading Income and Expenditure

The College owns 100% of RCOG Trading Limited (Company no: 04495641), whose main activities include the hire of facilities owned by the Royal College of Obstetricians and Gynaecologists and the provision of catering. It donates its taxable profits to the College under gift aid. Trading results extracted from its audited financial statements are shown below:

Profit and loss account
Turnover
Cost of sales
Gross profit
Administrative expenses
Management charge due to parent undertaking
Operating profit
Profit on ordinary activities before taxation
Taxation
Profit on ordinary activities after taxation
Gift aid donation to Royal College of Obstetricians and Gynaecologists
Profit for the financial period
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Funds
Amounts owed to/from the parent undertaking are shown in Note 17 (2019: Note 16)
Parent charity
The parent charity's gross income and the results for the year are disclosed as follows:
Gross income
Results for the year		 2020
£
693,842
(331,245)		 2019
£
1,620,979
(824,694)
362,597
(31,976)
(188,197)		 796,285
(22,739)
(279,949)
142,424 493,597
142,424
-		 493,597
-
142,424
(142,424)		 493,597
(493,597)
- -
2020
£
41,029
(41,027)		 2019
£
212,469
(212,467)
2 2
2020
£
18,239,512
(7,176,022)		 2019
£
20,331,967
846,251

52

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

Charitable activities

Staff costs (Note 9)
Direct costs (Note 7a)
Support costs:
Officers, Council and Administration
Finance
Facilities and Premises
Other:
Depreciation/IT/HR & Pension
Support costs
Governance costs
Total expenditure 2020
Total expenditure 2019		 Cost of
raising
funds
£
201,988
11,376

-
-
-
-		 Conferences,
Congress and
Meetings
£
476,624
573,317
-
-
-
-

Examinations
£
461,683
710,284
-
-
-
-
£
192,202
114,148
-
-
-
-
International
initiatives		 Membershi
p services
£
2,121,752
1,192,807
-
-
-
-
 Clinical
Quality
£
1,116,473
267,165
-
-
-
-		 Education
and
Training
Initiatives
£
425,539
74,282
-
-
-
-		 Leading
Safe
Choices
£
-
-
-
-
-
-		 National
Guideline
Alliance
£
2,689,159
440,894
-
-
-
-		 £
-
387,819
-
-
-
-
British Journal
of
Gynaecology		 Other
restricted
funds
£
775,875
508,315
-
-
-
-
 Other
trading
activities
£
-

388,250
-
-
-
-		 Governance
costs
£
-
139,999
-
-
-
-		 Support costs
£
2,124,399
-
582,065
506,061
1,243,385
1,740,387		 2020
£
10,585,694
4,808,656
582,065
506,061
1,243,385
1,740,387		 2019
£
9,960,557
7,741,030
600,634
294,660
1,409,436
943,875
213,364
140,456
3,021		 1,049,941
768,167
17,978		 1,171,967
834,773
13,597		 306,350
283,583
7,554		 3,314,559
2,689,298
59,412		 1,383,638
713,979
18,280		 499,821
451,323
11,093		 -
-
-		 3,130,053
-
-		 387,819
104,906
3,021		 1,284,190
-
-		 388,250
209,812
6,043		 139,999
-
(139,999)		 6,196,297
(6,196,297)
-		 19,466,248
-
-		 20,950,192
-
-
356,841 1,836,086 2,020,337 597,487 6,063,269 2,115,897 962,237 - 3,130,053 495,746 1,284,190 604,105 - - 19,466,248 20,950,192
329,165 3,315,214 1,936,322 653,096 5,325,061 1,604,046 973,341 911,155 3,024,766 578,401 1,185,240 1,114,384 - - 20,950,192

53

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

7b Analysis of expenditure (prior year)

Staff costs (Note 9)
Direct costs (Note 7a)
Support costs:
Officers, Council and Administration
Finance
Facilities and Premises
Other:
Depreciation/IT/HR & Pension
Support costs
Governance costs
Total expenditure 2019		 Cost of
raising
funds
£
201,799
61,255
263,054
65,022
1,089
329,165		 Charitable activities Other
trading
activities
£
-
889,313
-
-
-
-		 Governance
costs
£
-
95,629
-
-
-
-		 Support costs
£
2,038,745
-
600,634
294,660
1,409,436
943,875		 2019
£
9,960,557
7,741,030
600,634
294,660
1,409,436
943,875
Conferences,
Congress and
Meetings
£
465,776
2,150,579
-
-
-
-

Examinations
£
407,043
995,750
-
-
-
-		 £
203,413
150,085
-
-
-
-
International
initiatives		 Membership
services
£
1,864,384
1,077,983
-
-
-
-
 Clinical
Quality
£
833,773
198,825
-
-
-
-		 Education
and
Training
Initiatives
£
393,211
113,394
-
-
-
-		 Leading
Safe
Choices
£
400,767
510,388
-
-
-
-		 National
Guideline
Alliance
£
2,509,263
515,503
-
-
-
-		 £
-
439,469
-
-
-
-
British Journal
of
Gynaecology		 Other
restricted
funds
£
642,383
542,857
-
-
-
-
2,616,355
686,881
11,978		 1,402,793
525,362
8,167		 353,498
293,936
5,662		 2,942,367
2,340,150
42,544		 1,032,598
561,049
10,399		 506,605
458,079
8,657		 911,155
-
-		 3,024,766
-
-		 439,469
136,210
2,722		 1,185,240
-
-		 889,313
220,661
4,410		 95,629
-
(95,629)		 5,287,350
(5,287,350)
-		 20,950,192
-
-
3,315,214 1,936,322 653,096 5,325,061 1,604,046 973,341 911,155 3,024,766 578,401 1,185,240 1,114,384 - - 20,950,192

54

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

Conferences and meetings

Includes venue and catering costs, course materials and Congress expenditure.

Examinations

Includes fees for examiners, invigilators and role players; venue costs for external exam centres; costs for printing and preparation of exam papers.

International initiatives

Costs associated with the delivery of international projects; expenditure associated with International Liaison groups and the International Executive committee.

Fellows and members

Includes costs of member services; journals & epublishing (excl BJOG); eLearning resources expenditure; media and policy expenditure.

Clinical quality

Includes costs of producing and printing guidelines; costs of providing review services to Trusts; expenditure on grant funded projects.

Education and training

Costs incurred for the development and ongoing review of educational resources and associated marketing.

Leading Safe Choices

Costs incurred for the delivery of the LSC project.

NGA

Costs incurred in delivering NICE guidelines women and children's health, mental health and cancer.

BJOG

Includes editorial costs, publication costs and distribution costs.

Other restricted funds

Costs incurred in the delivery of restricted activity.

55

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

This is stated after charging:

This is stated after charging:
2020 2019
£ £
Depreciation 1,073,929 287,431
Impairment of Freehold Property 7,247,119 -
Operating lease rentals:
Buildings 167,816 300,000
Other 30,022 24,462
Auditors' remuneration (excluding VAT):
Audit (college) 23,000 22,000
Audit (subsidiary) 5,400 5,200
Other services 3,800 2,155

Staff costs were as follows:

Staff costs were as follows:
Social security costs
Employer’s contribution to College pension schemes
Salaries and wages
Redundancy costs		 2020
£
8,940,547
191,214
863,552
590,383		 2019
£
8,510,005
97,045
842,614
510,893
10,585,696 9,960,557

The following number of employees received employee benefits (excluding employer pension costs) during the period between:

2020 2019
No. No.
£60,001-£70,000 11 8
£70,001-£80,000 6 7
£80,001-£90,000 1 3
£90,001-£100,000 2 -
£100,001-£110,000 - -
£110,001-£120,000 - 1
£140,001-£150,000 1 -

Redundancy costs of £191,540 (2019: £97,045) were paid during the year and related to compensation for loss of office. During the year funding of £208,716 was received under the Government’s Job Retention Scheme (2019:£nil); this has been credited to Charitable income.

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £718,491 (2019: £640,137).

The Trustees were not paid or received any other benefits from employment with the charity in the period (2019: £nil). No member of the board of management received payment for professional or other services supplied to the charity (2019: £nil).

Trustees expenses represents the payment or reimbursement of travel and subsistence costs totalling £62,104 (2019: £78,420) incurred by 9 (2019: 9) members relating to attendance at meetings of the trustees.

56

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

10 Staff numbers

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

Membership services
Clinical Quality
Education and training initiatives
NGA
BJOG
Raising funds
Support
International Initiative
Examinations
Conferences & Meetings		 2020
No.
3.0
11.0
12.0
5.0
37.0
32.0
15.0
48.0
2.0
43.0		 2019
No.
2.0
12.0
8.0
7.0
38.0
27.0
18.0
50.0
2.0
44.0
208.0 208.0

11 Related party transactions

Related party transactions for the financial year were split between sales and purchase ledger transactions. These were payments to Council members as follows; K Brian £10,000 for chairing the Women's Network; C Nestor £1,000 honorarium and J Plumb £1,000 honorarium as joint vice chairs of the Women's Network. FIGO also invoiced RCOG for £23,094 for membership fees during the year. (2019: £300-room hire). RCOG also recharged FIGO £735,370 during the year for payroll costs (2019: £610,748). RCOG is one of the national member society representatives on FIGO Council.

Aggregate donations from related parties were £nil (2019: £6,500).

12 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary RCOG Limited gift aids available profits to the parent charity.

13 Tangible fixed assets

For the group and charity

At the end of the period
Additions in period
At the end of the period
At the start of the period
Cost
Net book value
At the start of the period
At the end of the period
Depreciation
At the start of the period
Charge for the period
Eliminated on disposal
Impairment
Disposals in period		 Freehold
property
£
44,042,543
5,674,631
-
(7,247,119)
Plant, furniture
and equipment
£
3,179,239
1,270,168
(722,725)
-
Donated assets
£
300,000
-
-
-
2020 Total
£
47,521,782
6,944,799
(722,725)
(7,247,119)		 2019 Total
41,067,221
6,454,561
-
-
42,470,055 3,726,682 300,000 46,496,737 47,521,782
-
570,055
-		 2,312,316
503,874
(722,725)		 -
-
-		 2,312,316
1,073,929
(722,725)		 2,024,885
287,431
-
570,055 2,093,465 - 2,663,520 2,312,316
41,900,000 1,633,217 300,000 43,833,217 45,209,466
44,042,543 866,923 300,000 45,209,466 39,042,336

All of the above assets are used for charitable purposes.

In February 2020 the College completed the capital works on the new freehold property in Union Street, London Bridge which is now the College's new headquarters. Following the completion of the building, a valuation was undertaken by Jones Lang LaSalle Ltd on 12 October 2020. This valuation, which was at market value, is below the total costs of the building and therefore in line with accounting standards, the carrying value in the financial statements has been adjusted to this lower value.

57

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

14 Heritage Assets

A separate category of donated assets are those historic assets which the College holds for their heritage, scientific importance and contribution to the educational advancement in women's health. These items hold an intrinsic value to the business of the College.

The Heritage items mainly include books, sculptured busts and portraits of past Presidents and instruments used in the historic application and study of Obstetricians and Gynaecologists. Many of the portraits remain on display around the College and a small sample of the instruments held form part of the display in the College museum. The remaining collections are held in appropriate environmentally controlled conditions on the premises.

The College maintains a central electronic catalogue of Heritage items which is reviewed and updated at least annually by the Operations Director and Archivist & Records Manager.

Trustees do not believe that a reasonable valuation can be placed on those donated assets which are held as heritage assets and which have not been capitalised.

Expenditure which, in the Trustees view, is required to preserve or clearly prevent further deterioration of individual collection items is recognised in the statement of financial activities when incurred.

Because of the uniqueness, substance and direct affiliation of these heritage assets with the College, conventional market valuation would lack the true value imparted and comparisons on which to base this value are unlikely to be reflected in the open market. As a result, these items are not recognised in the balance sheet of the College.

15 Listed investments (group and charity)

Consolidated
Fair value at the end of the period
Historic cost at the end of the period
Additions at cost
Disposal proceeds
Fair value at the start of the period
Net gain / (loss) on change in fair value		 2020
£
13,605,894
550,929
(300,929)
200,415		 2019
£
14,865,231
954,798
(2,758,228)
544,094
14,056,309 13,605,895
12,578,151 12,331,609

Investments comprise:

Overseas equities/other funds
UK based unit trusts
UK based equity funds
Cash awaiting re-investment		 2020
£
4,060,421
9,958,646
34,115
3,127		 2019
£
3,753,837
9,817,693
33,051
1,313
14,056,309 13,605,894

16 Debtors

Debtors
The group The charity
2020 2019 2020 2019
£ £ £ £
Trade debtors 1,065,574 2,284,086 1,028,903 2,055,994
Amount owed by subsidiary - - - 60,407
Other debtors 156,315 3,182,795 156,315 3,144,860
Prepayments 212,308 335,071 212,308 335,073
1,434,197 5,801,952 1,397,526 5,596,334

With the exception of listed investments and debtors due in more than one year all of the charity’s financial instruments, both assets and liabilities, are measured at amortised cost.

58

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

Creditors: amounts falling due within one year
Amounts owed to subsidiary
Bank loans
Accruals
Creditors: amounts falling due after one year
Bank loans repayable in 1-5 years
Trade creditors
Taxation and social security
Deferred income		 2020
2019
£
£
-
-
480,974
868,143
-
-
601,818
362,152
1,401,448
1,958,609
3,960,350
3,487,067
127,273
10,000,000
The group		 2020
2019
£
£
-
-
481,102
798,353
51,206
-
595,441
371,025
1,370,351
1,951,344
3,905,464
3,342,779
127,273
10,000,000
The charity
6,571,863 16,675,971 6,530,837 16,463,501
2020
£
6,872,727		 2019
£
-		 2020
£
6,872,727		 2019
£
-
6,872,727 - 6,872,727 -

Bank loans totalling £7,000,000 (2019: £10,000,000) are secured against 10-18 Union Street, London. Interest is charged at 1.65% above Base Rate. The creditor is disclosed at cost.

19
Balance at the beginning of the period
Amount released to income in the period
Amount deferred in the period
Balance at the end of the period
Deferred income		 2020
£
3,487,067
(3,487,067)
3,960,350		 2019
£
3,169,844
(3,169,844)
3,487,067		 2020
£
3,342,779
(3,342,779)
3,905,464		 2019
£
2,999,937
(2,999,937)
3,342,779
3,960,350 3,487,067 3,905,464 3,342,779

Deferred income largely comprises deferred membership and journal income relating to the next financial year.

59

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

20a
General
unrestricted
Designated
£
£
9,764,758
34,068,459
5,441,976
-
(1,679,611)
984,584
(6,872,727)
-
-
-
6,654,396
35,053,043
20b
General
unrestricted
Designated
£
£
3,323,833
41,885,633
5,015,677
-
(1,466,751)
1,758,643
-
-
6,872,759
43,644,276
Analysis of group net assets between funds (current period)
Defined benefit pension asset / (liability)
Analysis of group net assets between funds (prior year)
Net assets at the end of the period
Tangible fixed assets
Investments
Net current assets
Long Term Creditors
Tangible fixed assets
Investments
Net assets at the end of the period
Net current assets
Defined benefit pension asset / (liability)		 20a
General
unrestricted
Designated
£
£
9,764,758
34,068,459
5,441,976
-
(1,679,611)
984,584
(6,872,727)
-
-
-
6,654,396
35,053,043
20b
General
unrestricted
Designated
£
£
3,323,833
41,885,633
5,015,677
-
(1,466,751)
1,758,643
-
-
6,872,759
43,644,276
Analysis of group net assets between funds (current period)
Defined benefit pension asset / (liability)
Analysis of group net assets between funds (prior year)
Net assets at the end of the period
Tangible fixed assets
Investments
Net current assets
Long Term Creditors
Tangible fixed assets
Investments
Net assets at the end of the period
Net current assets
Defined benefit pension asset / (liability)		 20a
General
unrestricted
Designated
£
£
9,764,758
34,068,459
5,441,976
-
(1,679,611)
984,584
(6,872,727)
-
-
-
6,654,396
35,053,043
20b
General
unrestricted
Designated
£
£
3,323,833
41,885,633
5,015,677
-
(1,466,751)
1,758,643
-
-
6,872,759
43,644,276
Analysis of group net assets between funds (current period)
Defined benefit pension asset / (liability)
Analysis of group net assets between funds (prior year)
Net assets at the end of the period
Tangible fixed assets
Investments
Net current assets
Long Term Creditors
Tangible fixed assets
Investments
Net assets at the end of the period
Net current assets
Defined benefit pension asset / (liability)		 Pension
£
-
-
-
-
(906,000)		 Endowment
Restricted
£
£
-
-
3,964,902
4,649,431
-
3,052,702
-
-
-
-		 Endowment
Restricted
£
£
-
-
3,964,902
4,649,431
-
3,052,702
-
-
-
-		 Total funds
£
43,833,217
14,056,309
2,357,675
(6,872,727)
(906,000)
6,654,396 35,053,043 (906,000) 3,964,902 7,702,133 52,468,474

Designated
£
41,885,633
-
1,758,643
-		 Pension
£
-
-
-
(1,463,000)		 Endowment
Restricted
£
£
-
-
3,906,240
4,683,978
-
2,000,243
-
-		 Total funds
£
45,209,466
13,605,895
2,292,135
(1,463,000)
6,872,759 43,644,276 (1,463,000) 3,906,240 6,684,221 59,644,496

60

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

21a Movements in funds - permanent endowments (current period)

There are 7 transfers from Permanent Endowment to Restricted Funds totalling £3,427. These represent transfers from the 7 funds operating under the Total Return accounting policy where investment gains in excess of the present value of the original donation are transferred to Restricted Funds.


Restricted Funds.
Total endowment funds
Green Armytage and Spackman Travelling
William Meredith Fletcher Shaw
Sir Eardley Holland Medal fund
Ethicon Foundation Fund
William Blair-Bell Memorial
Victor Bonney Prize Fund
James Wyatt Dining Fund
Green Armytage Anglo American
Tim Chard Prize Fund
Florence Blair-Bell Art Fund
Thomas Watts Eden Fellowship
Edgar Research - Jean Ethel Gentili
JY Simpson Oration
President's Global Health Fund
Lindsay Stewart Fund
Permanent Endowments
Florence and William Blair Bell
Sims Black Travelling Professors Fund
Expendable Endowments
President's Fund		 At 1 July 2019
£
536,700
1,104,494
494,189
261,838
30,733
29,937
31,238
22,152
28,700
27,361
15,181
2,120
13,571
4,324		 Income & gains
£
5,837
12,012
5,375
2,848
334
326
340
241
312
298
165
23
148
47		 Expenditure &
losses
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Transfers
£
(1,361)
-
(1,253)
(663)
(78)
-
-
(56)
-
-
-
(5)
-
(11)		 At 30 June
2020
£
541,176
1,116,506
498,311
264,023
30,989
30,263
31,578
22,337
29,012
27,659
15,346
2,138
13,719
4,360
2,602,538
180,748
298,389
141,143
683,422		 28,306
3,932
6,492
1,535
21,824		 -
-
-
-
-		 (3,427)
-
-
-
-		 2,627,417
184,680
304,881
142,678
705,246
1,303,702 33,783 - - 1,337,485
3,906,240 62,089 - (3,427) 3,964,902

21b Movements in funds - permanent endowments (prior year)

Total endowment funds
Ethicon Foundation Fund
Expendable Endowments
President's Fund
Lindsay Stewart Fund
Victor Bonney Prize Fund
Florence and William Blair Bell
Sims Black Travelling Professors Fund
Thomas Watts Eden Fellowship
Green Armytage and Spackman Travelling
Green Armytage Anglo American
Tim Chard Prize Fund
James Wyatt Dining Fund
Florence Blair-Bell Art Fund
JY Simpson Oration
President's Global Health Fund
Permanent Endowments
Edgar Research - Jean Ethel Gentili
William Blair-Bell Memorial
William Meredith Fletcher Shaw
Sir Eardley Holland Medal fund		 At 1 July 2018
£
518,149
1,062,329
477,108
252,789
30,564
28,794
30,045
21,386
27,604
26,316
14,601
2,048
13,053
4,175		 Income & gains
£
20,566
42,165
18,937
10,033
1,213
1,143
1,193
849
1,096
1,045
580
81
518
166		 Expenditure &
losses
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Transfers
£
(2,015)
-
(1,856)
(984)
(1,044)
-
-
(83)
-
-
-
(9)
-
(17)		 At 30 June
2019
£
536,700
1,104,494
494,189
261,838
30,733
29,937
31,238
22,152
28,700
27,361
15,181
2,120
13,571
4,324
2,508,961
171,223
282,666
135,755
771,051		 99,585
9,525
15,723
5,388
62,371		 -
-
-
-
-		 (6,008)
-
-
-
(150,000)		 2,602,538
180,748
298,389
141,143
683,422
1,360,695 93,007 - (150,000) 1,303,702
3,869,656 192,592 - (156,008) 3,906,240

61

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

21 Movements in funds - permanent endowments (continued)

Purposes of permanent endowments

Edgar Research - Jean Ethel Gentilli Scholarship

For the purpose of education and or research in obstetrics and or gynaecology.

Florence and William Blair-Bell Memorial Fund

To fund fellowships with the object of bridging the widening gap between scientific research and clinical practice.

Sims Black Travelling Fund

For the provision of travel awards to lecture, teach or engage in research in Obstetrics or Gynaecology.

Thomas Watts Eden Fellowship

For the provision of travelling expenses of medical graduates of not less than two years standing to any approved UK or Commonwealth University for participation in a research project.

Green Armytage and Spackman Travelling Scholarship Fund

To fund a scholarship to encourage the study and to advance the science and art of obstetrics and gynaecology.

Green Armytage Anglo American

To award a lectureship biennially, alternatively between a British and an American lecturer.

Tim Chard Prize fund

To fund the Tim Chard Case History Prize endowed by St Bartholomew Hospital Trust and the Royal London School of Medicine and Dentistry to mark the late Professor Tim Chard’s contribution to 3q3 Obstetrics and Gynaecology.

Florence Blair-Bell Art fund

To purchase antique furniture, ornaments, pictures and books printed before 1937.

William Blair-Bell Memorial

To pay honorariums and contribute to travelling expenses for two lectures.

Victor Bonney Prize fund

To pay honorariums and contribute to travelling expenses for two lectures.

James Wyatt Dining fund

To provide a dinner for the Council every 2 years.

JY Simpson Oration fund

To fund the delivery of an annual lecture.

William Meredith Fletcher Shaw Memorial Lectureship

For awarding a lectureship to a senior Fellow of the College.

Sir Eardley Holland Medal fund

For awarding a gold medal once every five years for outstanding original work.

Purposes of expendable endowments

President's Fund

To fund exceptional items of expenditure at the President's discretion.

President’s Global Health fund

The fund is to be used to pump prime the initiation of the RCOG International fundraising strategy.

Ethlcon Foundation Fund

For the provision of travel awards to enable members to attend postgraduate training courses, centres for research and similar.

Lindsay Stewart Research and Development Fund

To support the ongoing and future health service research activities of the College.

62

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

22a Movements in funds - restricted funds (current period)

EFL
THET
Other
Scholarship and lecture funds
Total restricted funds
Restricted funds:
Lockyer Travelling Fellowship
National Guidelines Alliance
Other Funds
Research funds
Bernhard Baron Scholarship Fund
Edgar Research-Jean Ethel Gentilli
Florence and William Blair-Bell Memorial
Fund
Marjorie Kuck
Millennium Endometriosis Fund
Lindsay Stewart Centre and related
activities
Trusts (Capital)
Sims Black Travelling Professors Fund
Thomas Watts Eden Fellowship
Government grants
Sir William Gilliatt Memorial Fund
Making Abortion Safe
Other funds
Other special purpose funds		 At 1 July 2019
£
509,503
344,955
818,553
62,069
162,691		 Income & gains
£
11,085
7,505
23,186
4,199
4,660		 Expenditure &
losses
£
(15,791)
(10,121)
(23,947)
(621)
(1,630)
Transfers
£
-
-
1,253
663
78		 At 30 June
2020
£
504,797
342,339
819,045
66,310
165,799
1,897,771 50,635 (52,110) 1,994 1,898,290
34,189
2,007,301
249,908		 744
49,512
17,455		 (2,567)
(90,842)
(5,311)		 -
1,361
-		 32,366
1,967,332
262,052
2,291,398 67,711 (98,720) 1,361 2,261,750
19,228
14,060
500,000
-
658,693
461,521		 -
306
585,000
253,022
1,586,522
159,608		 (192)
(2,040)
-
(76,638)
(1,205,919)
(163,172)		 -
-
-
-
-
72		 19,036
12,326
1,085,000
176,384
1,039,296
458,029
1,653,502 2,584,458 (1,447,961) 72 2,790,071
747,937
90,685
(822)
3,750		 3,046,100
-
-
-		 (3,130,053)
(5,575)
-
-		 -
-
822
(822)		 663,984
85,110
-
2,928
841,550 3,046,100 (3,135,628) - 752,022
6,684,221 5,748,904 (4,734,419) 3,427 7,702,133

63

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

22b Movements in funds - restricted funds (prior year)

EFL
THET
Other
Millennium Endometriosis Fund
Leading Safe Choices
Total restricted funds
Lockyer Travelling Fellowship
Lindsay Stewart Centre and related
activities
Other funds
Marjorie Kuck
Florence and William Blair-Bell Memorial
Fund
Scholarship and lecture funds
Other special purpose funds
National Guidelines Alliance
Bernhard Baron Scholarship Fund
Sir William Gilliatt Memorial Fund
Government grants
Trusts (Capital)
Restricted funds:
Sims Black Travelling Professors Fund
Thomas Watts Eden Fellowship
Other Funds
Research funds
Edgar Research-Jean Ethel Gentilli		 At 1 July 2018
£
524,307
336,639
799,232
54,639
159,875		 Income & gains
£
29,164
18,725
52,057
7,067
10,486		 Expenditure &
losses
£
(43,968)
(10,409)
(34,592)
(621)
(8,714)
Transfers
£
-
-
1,856
984
1,044		 At 30 June
2019
£
509,503
344,955
818,553
62,069
162,691
1,874,692 117,499 (98,304) 3,884 1,897,771
32,697
2,019,190
220,819		 1,819
120,569
29,208		 (327)
(134,473)
(119)		 -
2,015
-		 34,189
2,007,301
249,908
2,272,706 151,596 (134,919) 2,015 2,291,398
19,422
16,412
-
1,119,148
429,621
423,245		 -
913
500,000
(83,016)
935,451
50,750		 (194)
(3,265)
-
(911,154)
(856,379)
(12,583)		 -
-
-
(124,979)
150,000
109		 19,228
14,060
500,000
-
658,693
461,521
2,007,848 1,404,098 (1,783,575) 25,130 1,653,502
434,588
98,163
19,531
3,750		 3,589,676
-
19,633
-		 (3,276,327)
(7,478)
(39,986)
-		 -
-
-
-		 747,937
90,685
(822)
3,750
556,032 3,609,309 (3,323,791) - 841,550
6,711,278 5,282,502 (5,340,589) 31,029 6,684,221

64

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

Purposes of restricted funds

Scholarship and Lecture Funds

Lockyer Travelling Fellowship

To fund College travel and facilitate links with Fellows and Members.

Bernhard Baron Scholarship fund

A fund for the provision of travel awards to Fellows and Members.

Sims Black Travelling Professors fund

To enable practicing obstetricians and gynaecologists to travel to countries of the Commonwealth to further the aims of the College.

Thomas Watts Eden Fellowship

A fund for the provision of travel awards to Fellows and Members.

Research funds

Sir William Gilliatt Memorial fund

To encourage research in all aspects of Obstetrics and Gynaecological medicine.

Edgar Research – Jean Ethel Gentilli

To fund education and or research into Obstetrics and or Gynaecology.

Florence and William Blair-Bell Memorial fund

For the upkeep and maintenance of 27 Sussex Place.

Other Special Purpose Grants

Marjorie Kuck Millennium

For research into the medical problems of Obstetrics.

Endometriosis fund

To stimulate and encourage research in the field of endometriosis. Alternatively to provide a contribution towards a travelling fellowship to attend a recognised training centre.

Making Abortion Safe

Funding for a programme to increase healthcare professionals capacity to address the barriers to safe abortion and post-abortion care for women and girls globally.

Lindsay Stewart Centre and related activities

Funding for the Lindsay Stewart Centre for Audit and Clinical Informatics, incorporating funding for the National Maternity and Perinatal Audit, Each Baby Counts and the OASI Care Bundle.

Trusts (Capital)

Grants from Trusts & Foundations to support the Union Street capital project.

Government Grants

NGA

This represents funding provided by NICE for guideline production. In April 2016, the National Guideline Alliance was launched and produces guidelines for women and children's healthcare, mental health care and cancer care.

EFL

Funds received for the development and delivery of the electro fetal monitoring programme.

THET

Grant secured from the Tropical Health and Education Trust (funded by UK Aid) to fund an education programme at Kitovu hospital in the Masaka District of Uganda.

Other funds

After a review of fund balances brought forward from 2014, it has been determined that a number of funds can now be released to general funds as their purpose is now complete and the balances represent overhead recoveries or expenditure absorbed by general funds.

65

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

23a Movements in funds - unrestricted funds (current period)

Herbert Erik Reiss Memorial Fund
Long term liability Fund
Trainees Committee Fund
Total unrestricted funds
Maternal 3rd World Care
Pension fund
General funds
Total designated funds
Total funds including pension fund
Video Conferencing fund
Business Intelligence Development
Property fund
Overseas fund
Repairs & Maintenance Funds
John Lawson Fund
Edgar Gentilli Research Fund
Transition Fund
Designated funds
Heritage Fund		 At 1 July 2019
£
41,585,633
112,388
300,000
42,985
400,000
27,023
12,931
7,577
1,909
171,460
901,476
24,680
56,214		 Income & gains
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 Expenditure &
losses
£
(7,247,119)
(2,500)
-
(41,749)
(74,172)
(150)
-
(750)
-
-
-
-
-
Transfers
£
(570,055)
(100,000)
-
(1,236)
(325,828)
-
-
-
-
(171,460)
-
-
(56,214)		 At 30 June
2020
£
33,768,459
9,888
300,000
-
-
26,873
12,931
6,827
1,909
-
901,476
24,680
-
43,644,276 - (7,366,440) (1,224,793) 35,053,043
6,872,759 13,180,352 (14,623,508) 1,224,793 6,654,396
50,517,035 13,180,352 (21,989,948) - 41,707,439
(1,463,000) 546,000 11,000 - (906,000)
49,054,035 13,726,352 (21,978,948) - 40,801,439

Unrestricted funds

Unrestricted funds
Herbert Erik Reiss Memorial Fund
General funds
John Lawson Fund
Long term liability Fund
Trainees Committee Fund
Business Intelligence Development
Total designated funds
Total unrestricted funds
Pension fund
Edgar Gentilli Research Fund
Maternal 3rd World Care
Video Conferencing fund
Overseas fund
Heritage Fund
Repairs & Maintenance Funds
Transition Fund
Property fund
Total funds including pension fund
Designated funds		 At 1 July 2018
£
41,597,633
214,888
300,000
44,461
-
27,023
13,531
8,177
1,909
171,460
701,476
24,680
90,000		 Income & gains
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 Expenditure &
losses
£
-
(2,500)
-
(1,476)
-
-
(600)
(600)
-
-
-
-
(33,786)
Transfers
£
(12,000)
(100,000)
-
-
400,000
-
-
-
-
-
200,000
-
-		 At 30 June
2019
£
41,585,633
112,388
300,000
42,985
400,000
27,023
12,931
7,577
1,909
171,460
901,476
24,680
56,214
43,195,238 - (38,962) 488,000 43,644,276
6,142,073 16,518,521 (15,424,814) (363,021) 6,872,759
49,337,311 16,518,521 (15,463,776) 124,979 50,517,035
(1,120,000) (207,000) (136,000) - (1,463,000)
48,217,311 16,311,521 (15,599,776) 124,979 49,054,035

66

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

Purposes of designated funds

Property fund

Representing the net book value of property in use by the College in furtherance of its charitable activities.

Overseas fund

For the provision of travel for overseas Members of the College to undertake further training in the UK.

Heritage fund

These funds represent those assets donated to the College at their market value.

Education fund

Representing amounts set aside for the capital spend on educational facilities.

Repairs & Maintenance funds

Representing the amounts set aside for future repair work on the property and replacement furnishings.

Transition Fund

Funds designated by the Board to meet any additional/unexpected costs incurred during the move from Sussex Place to Union Street.

John Lawson fund

For the award of a Prize awarded to the candidate who provides the best article on a topic of O&G derived from work carried out in Africa.

Herbert Erik Reiss Memorial fund

For the award of a Prize for junior doctors working in Foundation Yrs 1 and 2 or Specialist Training years 1 & 2 in the UK and ROI.

Edgar Gentilli Research fund

To generate income to fund an annual Prize in perpetuity.

Maternal 3rd World Care

To subsidise the production costs of a RCOG Press book called “Maternity Services in the Developing World”.

Video Conferencing Provision to contribute to the design and rebuild of the College website. In 2016 the Board redesignated this fund to support the Video Conferencing project.

Long term liability fund.

Funds designated by the Board to manage future pension and estate planning.

Trainees’ Committee Fund

Funds designated by the Board for use by the Trainees’ Committee.

Business Intelligence Development Fund

Funds designated by the Board to support the work of the BI department.

67

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

24 Operating lease commitments

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

1 - 5 Years
Less than 1 year		 2020
2019
£
£
-
200,000
-
-
Property		 2020
2019
£
£
-
200,000
-
-
Property		 2020
2019
£
£
29,972
29,972
37,465
67,437
Equipment		 2020
2019
£
£
29,972
29,972
37,465
67,437
Equipment
- 200,000 67,437 97,409

25 Pension Costs

Defined Contribution Scheme

The College operates a pension scheme based on defined contributions. The assets of the scheme are held separate from those of the College and are invested in exempt approved investment funds. The defined contribution scheme is open to all staff. The cost for the period was £540,783 (2019: £510,893).

Defined Benefit Scheme

The College sponsors the Royal College of Obstetricians and Gynaecologists Pension Scheme which is a funded defined benefit arrangement. This is a separate trustee administered fund holding the pension scheme assets to meet long term pension liabilities for some 115 past and around 8 present employees. The level of retirement benefit is principally based on the best salary earned in the last three years of employment.

The Trustees of the scheme are required to act in the best interest of the scheme's beneficiaries. During 2016 the Scheme moved to a sole trustee structure.

A full actuarial valuation of the scheme was carried out as at 31 March 2016 in accordance with the scheme funding requirements of the Pensions Act 2004 and the funding of the scheme is agreed between the College and the Trustees in line with these requirements. These in particular require the deficit to be calculated using prudent, as opposed to best estimate, actuarial assumptions. The actuarial valuation showed a funding shortfall of £4.98m.

The Scheme is a non-segregated multi-employer scheme. On an approximate basis, RCOG is responsible for c84.7% of the total liability.

For the purposes of FRS102, the preliminary actuarial valuation as at 31 March 2016, which was carried out by a qualified independent actuary, has been updated on an approximate basis to 30 June 2019. This update is inherently less rigorous than a full valuation, adding to the level of uncertainty which pervades any assessment of the current value of the scheme's long term obligations and likely ability of the expected performance of its assets to meet those obligations.

Present values of RCOG's share of scheme liabilities, fair value of assets and deficit

Fair value of scheme assets
Present value of scheme liabilities
Surplus/(Deficit) in scheme		 2020
£'000
21,559
(22,465)		 2019
£'000
19,906
(21,369)
(906) (1,463)

The present value of scheme liabilities is measured by discounting the best estimate of future cash flows to be paid out by the scheme using the projected unit method. The value calculated in this way is reflected in the net liability in the balance sheet as shown above.

68

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

25 Pension costs (continued)

Reconciliation of opening and closing balances of the present value of the scheme liabilities

Reconciliation of opening and closing balances of the present value of the scheme liabilities
Scheme liabilities at start of period
Interest cost
Actuarial losses
Benefits paid and expenses
Scheme liabilities at end of period
Reconciliation of opening and closing balances of the present value of the scheme assets
Fair value of scheme assets at period start
Expected return on scheme assets
Contributions by employer
Benefits paid and expenses
Fair value of scheme assets at end of period		 2020
£
21,369
464
1,168
(536)		 2019
£
19,992
532
1,290
(445)
22,465 21,369
2020
£'000
19,906
2,147
42
(536)		 2019
£'000
18,872
1,083
502
(551)
21,559 19,906

The actual return on the scheme assets over the period ending 30 June 2020 was £2,147,000 (2019: 1,585,000).

Contributions

The total contributions made by the employer over the period of £nil (2019: £nil) includes 0% (2019: 0%) employer's contributions towards the final salary scheme.

The best estimate of contributions to be paid by the employer to the scheme for the period beginning after 30 June 2020 is £nil (2019: £nil).

Total expenses recognised in net incoming/(outgoing) resources

Total expenses recognised in net incoming/(outgoing) resources
Interest on obligations
Difference between expected and actual return on scheme assets
Amount: (gain)
Experience gains and losses arising on the scheme liabilities
Amount: loss
Amount: loss/(gain)
Past service cost		 2020
£'000
-
31		 2018
£'000
106
30
31 136
1,714
(1,168)		 1,083
(1,290)
546 (207)

69

Royal College of Obstetricians and Gynaecologists

Notes to the financial statements

For the year ended 30 June 2020

The major categories of plan assets as a percentage of total plan assets are as follows:

The major categories of plan assets as a percentage of total plan assets are as follows:
Pension costs (continued)
Equities & Diversified Growth Funds
Corporate Bonds
UK Fixed Gilts
Cash & other
Annuities
Liability Driven Investments
Total assets		 2020
62.1%
21.5%
0.0%
0.6%
0.0%
15.8%		 2018
61.3%
31.0%
0.0%
0.0%
0.0%
7.7%
100.0% 100.0%

Pension costs (continued)

Assumptions

Assumptions
31 December
30 June 2020 30 June 2019 30 June 2018 30 June 2017 2015
£'000 £'000 £'000 £'000 £'000
Inflation 2.8 3.1 3.0 3.2 3.0
Salary increases 2.8 3 3.0 3.0 3.0
Rate of discount 1.4 2.2 2.7 2.6 3.8
Allowance for pension in payment 2.8 3.1 2.9 3.1 2.9
Allowance for revaluation of deferred 1.8 1.9 1.8 2.6 2.4

The mortality assumptions adopted are based on those applied in the most recent formal actuarial valuation as at 1 April 2019 updated to 30 June 2020 by a qualified actuary.

Male retiring at age 60 in 2020 26.5 years Female retiring at age 60 in 2020 29.1 years Male retiring at age 60 in 2040 28.0 years Female retiring at age 60 in 2040 30.6 years

Analysis of the sensitivity of the principal assumptions of the value of the scheme liabilities

Assumptions Change in assumptions Approx. impact on scheme liabilities
Discount rate Increase by 0.5% p.a. Decrease by 9%
Rate of inflation Increase by 0.5% p.a. Increase by 7%
Rate of salary growth Increase by 0.5% p.a. Increase by 1%
Rate of mortality 1 year increase in life expectancy Increase by 3%

Amounts for the current and previous periods

Fair value of assets
Present value of scheme liabilities
Surplus/(deficit) in scheme
Total
Experience adjustment on scheme assets
Effects of changes in the demographic and financial assumptions underlying the present value
of the scheme liabilities		 2020
£'000
21,559
(22,465)		 2019
£'000
19,906
(21,369)
(906) (1,463)
(1,168)
1,714		 (1,290)
1,083
546 (207)

26 Post balance sheet events

On 3 August 2020 the College sold the British Journal of Obstetrics and Gynaecology (BJOG) to the academic publisher Wiley for £3,850,000. The sale agreement included both transfer of ownership to Wiley and an ongoing relationship between the College and BJOG.

70