Trustees, report
and accounts 2021
**F O R E W O R D F R O M T H E C H A I R**
**2**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Foreword from the Chair
I’m delighted to share our _Trustees’ report and accounts_ for 2021 with you.
Once again, 2021 was a year in which we saw the best of our people as they continued to be there for animals in need, despite the continuing pandemic. Against an ever-changing backdrop of lockdowns and restrictions, we kept adapting and innovating, kept safe and kept going. Day after day, our branches in local communities took in animals in desperate need, nurtured them, healed them and found them homes or released them into the wild. They saw the challenges facing animal owners in crisis and reached out to help in wonderfully creative, caring and thoughtful ways. Our Inspectorate continually adapted to the ‘new normal’, responding to many thousands of calls for help, day after day. And through it all, our fabulous supporters rose to every challenge, enthusiastically getting behind us at every stage, for example raising an amazing £1.17 million in response to our 2021 Christmas appeal.
Our core beliefs drive all of our work, and they are shared by compassionate people everywhere, inspiring and bringing together supporters from incredibly diverse backgrounds to make a real, practical difference to animals’ lives.
We believe that:
l all animals deserve a good life
l animals have emotions, feelings and needs
l animals enrich and improve our lives
l all of us can and should help to make animals’ lives better.
There are three pillars to our work:
l rescuing and caring for abused and neglected animals l educating and inspiring people
l changing attitudes, behaviours and laws.
We have always had an important enforcement role too. As part of our strategy, we are reviewing our role as prosecutors and have begun exploring the potential for transferring this responsibility to the Crown Prosecution
_In 2021, 15,023 wild animals were admitted to our wildlife centres._
Service and other agencies. Nevertheless, we are currently the primary prosecuting body for animal welfare and we’re working with partners to ensure the best possible standards are followed. Since 2017, a review panel of volunteers – legal professionals from a variety of fields who are totally independent of the RSPCA – has examined our casework on a regular basis. They met twice in 2021, as usual, and identified areas of excellence in the way we handled our cases throughout the year, as well as making some useful suggestions about where we could improve. The panel is an incredibly valuable resource to us, helping ensure our prosecution work stands up to robust scrutiny and meets the standards of transparency and accountability expected in today’s society.
As we move towards our 200th anniversary year in 2024, we’re planning a monumental drive to engage as many people and communities as we can in an array of events, activities and important conversations that will really put humans’ relationship with animals centre stage. We’ll celebrate our charity’s long, impressive history and its many successes, but – more importantly – we’ll be focusing on why the RSPCA is still relevant today and will be for generations to come. By actively listening to our supporters, we’ll make it possible for every single one of them to get involved in ways that excite and inspire them to do amazing things for animals. The big message we want everyone to be talking about is that animals are a vital part of all our lives and we each have a role to play in ensuring their wellbeing.
I would like to thank the trustees, our Patron, President, Vice-Presidents and Ambassadors, our branches, staff and volunteers for their tireless work and support over the last year. It is a testament to the commitment, drive and resourcefulness of our people – and to the continuing generosity of our wonderful supporters – that we are still making a difference to animals’ lives and will continue to do so for many years to come.
After almost 200 years of unflagging achievement and innovation, the RSPCA is powering into its third century with a strong vision that will inspire the million-strong movement for animal welfare that we are beginning to build. Together, there will be no stopping us.
**René Olivieri** _Chair, RSPCA_
TRUSTEES’ REPORT AND ACCOUNTS **2021[3]**
**F O R E W O R D F R O M T H E C E O**
**----- Start of picture text -----**
In 2021, 20,188 cats were taken in by our centres.
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**4**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
Foreword from the Chief Executive
This was a pivotal year for the RSPCA, being the first year of delivery of our bold and ambitious 10-year strategy, _Together for animal welfare_ , a strategy that will drive us towards achieving our vision:
‘to live in a world where all animals are respected and treated with kindness and compassion’.
As we approach our 200th anniversary in 2024, the strategy will ensure we remain a modern, sustainable, forward-looking and effective organisation that will continue to have a dramatic impact on animal welfare through to 2030 and beyond.
By 2030, our eight bold ambitions* are to:
l reduce cruelty to animals by half
l end illegal sales of puppies and kittens in the UK
l boost farm animal welfare
l end severe suffering for laboratory animals used in research
l secure legal protection for animals through an independent public body
l secure statutory powers for our inspectors to help them rescue animals more quickly
l get the United Nations (UN) on board for animals
l inspire a one-million-strong movement for animal welfare.
*You can read more on page 8.
We know that the key to achieving these ambitions is to work in partnership with others. We’ll build on existing connections and forge new ones wherever we can with individuals, communities, businesses and organisations, because we know we’re so much stronger together. Harnessing the natural connection people have with animals, we’ll mobilise a powerful million-strong movement to advocate for animal welfare through our new community engagement programme. In 2021, we saw this mobilisation already starting to happen, for example with a huge increase in public involvement in our campaigns, such as #EndBSL and #CancelOutCruelty. With over 18 percent more people getting on board than in 2020, carrying out more than 161,000 actions, we know there’s a huge compassionate public out there who can and will get behind our drive for changes in attitude and legislation. The 180,000+ active animal lovers in our campaign network in 2021 showed themselves very ready and willing to speak out for animals.
We saw signs of positive legislative change in 2021 too. Working within a coalition of 50 animal welfare charities, we released a report called _Act now for animals_ , with 40 recommendations encouraging the UK Government to take a once-in-a-generation opportunity to redefine our relationship with animals, post-Brexit. On the back of that, we were delighted when Defra showed its commitment to animal welfare with its new _Action plan for animals_ , in which it set out an ambitious agenda to act on a range of issues, such as banning live exports of animals for fattening and slaughter, legislation on puppy smuggling and increased protections for kept wild animals.
As the pandemic continued in 2021, we responded quickly to the lockdown-driven surge in low-welfare puppy imports, securing
bans on importing very young puppies and on importing dogs with cruelly cropped ears. In a big step forward for animals, we also got a commitment from Westminster to set up an independent Animal Sentience Committee, which will assess the impact on animal welfare of any public policies under consideration. And in a longawaited victory for animals, the Animal Welfare (Sentencing) Act came into force in 2021, meaning that cruel animal abusers in England and Wales now face prison sentences of up to five years, instead of the previous maximum of only six months.
So many of the animal welfare challenges we face require us to work with international partners, and this is an important strand of our strategy. In 2021, I was proud to be invited to sit on the board of the World Federation for Animals, alongside my counterparts from many of the world’s leading animal welfare organisations. Our international activity is framed around the concepts of One Health and One Welfare, which stress the links between the health and wellbeing of humans, other animals and our environment. One of our big ambitions is to see the UN pass a Universal Declaration on Animal Welfare, which will mean encouraging all member states to adopt shared principles around the sentience of animals and our responsibility towards them. As a step towards that goal, in 2021 we worked with other major organisations on a groundbreaking draft resolution on animal welfare to go before the UN Environment Assembly in 2022.
Another of our ambitions is to see – by 2030 – half of all farm animals in the UK reared to the comprehensive welfare-focused standards promoted by our RSPCA Assured food assurance scheme. The work towards that began in 2021 with an independent review of the scheme, which found that it ‘has a positive and significant impact on improving the lives of 136 million animals in the UK per year, with the potential to assure more’. This is a strong platform from which to build and we’ll be taking on recommendations from the review to extend the scheme to improve more animals’ lives than ever before.
At an organisational level, 2021 was the year in which equality, diversity and inclusion were placed firmly on the RSPCA’s agenda, with a commitment to being a more inclusive organisation. We introduced recruitment programmes to ensure diversity in our teams and drafted progressive family-friendly policies that will support our people through the most important changes in their lives. It’s fair to say that the pandemic has changed the way we work for good – the success of our new ‘Hello Hybrid’ approach to home/office-based working for many of our desk-working staff removed the need for our headquarters building, which we decided to put on the market.
I’m delighted to say that we saw a phenomenal financial turnaround too, reversing the deficits of the previous three years, which will enable crucial investment in growing our income and funding the vital work to modernise and transform the RSPCA for the future. Our 2021 operating model does not reflect a design that will enable the bold ambitions in our strategy, and it will be through our transformation work that we set about the changes required over transitionary years ahead. I’m proud that we kept going through the financial hardship the Society faced and that we can start 2022 on a much firmer footing.
We are justly proud of our values as an organisation, which we relaunched in 2021 and which are demonstrated every single day by our staff, our branches, our supporters and our volunteers. By epitomising those values of compassion, inspiration, commitment, expertise and integrity, I believe they are the proof that together we can – and will – achieve our ambitions.
**Chris Sherwood** _RSPCA Chief Executive_
TRUSTEES’ REPORT AND ACCOUNTS **2021[5]**
Why the RSPCA matters As part of the fabric of UK society, the RSPCA is recognised by many people as _the_ charity for animals.
It was the first ever animal welfare organisation, formed nearly 200 years ago, at a time when cruelty to animals was part of everyday life. In 1824, a number of inspirational individuals, determined to bring about change, formed what was to become the RSPCA. Their vision went on to inspire a global movement that would continually transform attitudes, shape laws and protect animals’ lives over the next 200 years – and beyond.
The RSPCA will always be here for animals. Why? Because animals matter – to us and to our future as a species.
Humans and animals are all part of the same fragile and complex ecosystem. Behaving responsibly towards animals – and indeed towards the planet – is in all our interests, as the world grapples with issues such as the climate emergency, habitat destruction, the risk of zoonotic disease transmission and species erosion. As champions of animal welfare, the RSPCA must be part of the solution to these problems, leading on the science and showing ordinary people, businesses, political leaders and legislators alike the way forward.
Compassion is vital too. We believe that a compassionate society that treats animals with kindness and respect is likely to be a fair and decent one that values all life – and that is something that benefits us all.
As we approach our 200th anniversary in 2024 and prepare to blast into our third century with typical energy and purpose, we are still rescuing, caring for and rehabilitating or rehoming animals in need and doing all we can to ensure people’s interactions with animals are compassionate, caring and responsible.
## **Our vision**
is a world where all animals are respected and treated with kindness and compassion.
## **Our mission**
is to ensure animals have a good life by rescuing and caring for those in need, by advocating on behalf of all animals and by inspiring everyone to treat them with compassion and respect.
## **Our core beliefs**
**1.** All animals deserve a good life
**2.** Animals’ lives are important in themselves
**3.** Animals have emotions, feelings and needs
**4.** Animals enrich and improve our lives
**5.** All of us can and should help to make animals’ lives better
**6**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## **Our values**
## We are **compassionate** :
l we care deeply about the lives of animals l we have empathy for people l we act with kindness and consideration at all times.
## We are **inspirational** :
l we are life-changing l we inspire by taking the lead l we speak up when others don’t l we take brave decisions l we change animals’ lives for the better.
We are **committed** :
l we never give up l we have energy and determination l we rescue animals from cruelty and neglect l we give animals a second chance at life l we advocate for all animals at risk of harm.
welfare incidents dealt with by our Inspectorate
138,965
calls to the RSPCA 24-hour cruelty line
1,081,018
complaints of alleged cruelty investigated
51,505
welfare notices and advice given out to improve animal care
25,651
horses taken in by our centres 460
We are **expert** :
l we have expert knowledge, which we willingly share l we act on the basis of evidence l we underpin our decisions and actions with science, data and experience.
7,412[dogs taken in by our centres]
We have **integrity** :
l we are honest and trustworthy l we act with integrity l we do what’s right.
20,188[cats taken in by our centres]
2,731[rabbits taken in by our centres]
15,023
wild animals admitted to our wildlife centres
37,497[animals microchipped]
treatments dispensed 88,994 (not including neutering)
animals neutered by the 46,806 RSPCA family
convictions secured in the magistrates’ or 751 crown courts for animal welfare offences
people convicted for animal 350 welfare offences
TRUSTEES’ REPORT AND ACCOUNTS **2021[7]**
## Our 2021–2030
## strategy: Together for animal welfare
## 2021 was the foundational year of our bold new 10-year strategy, _Together for animal welfare_ .
We’re off to a strong start, but there is still much to achieve. Because we are ambitious for animal welfare, because we want to improve the lives of all animals and because our scope of activity is so great, we are determined to keep our priorities in sight and to measure our progress carefully through our performance dashboard. We also want to bring people with us – more and more people than ever before, from all parts of society. With such a groundswell of support and a society-wide shared understanding, we really believe we can make the incredible progress we’re aiming to achieve.
## **Our ambitions**
These eight bold ambitions, which will dramatically improve the lives of animals, will drive us through to 2030.
## **We will…**
**1. Reduce** neglect, abuse and cruelty to companion animals, including exotic animals, in England and Wales by 50 percent
**2. End** the illegal puppy and kitten trade in the UK
**3. See** more than half of all UK farm animals reared to RSPCA welfare standards, with more people choosing higher-welfare labels and people eating less meat, fish, eggs and dairy from low-welfare farms
**4. Secure** a global commitment to developing, validating and accepting non-animal technologies to replace animal experiments and end severe suffering for laboratory animals
**5. Establish** animal protection as a significant UK Government goal, supported by an Animal Protection Commission – an independent, legally established public body
**6. Achieve** statutory powers for RSPCA inspectors in England and Wales under the Animal Welfare Act 2006
**7. Secure** the adoption of a comprehensive Universal Declaration on animal welfare by the United Nations
**8. Recruit** one million RSPCA animal champions by 2030 to maximise our impact on animal welfare
**8**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Ensuring a better life for animals in ‘the new normal’
## COVID-19 continued to impact on everyone’s lives during 2021.
We’d moved swiftly to achieve key-worker status for our critical frontline teams early in 2020 so, despite the difficulties we faced in this ‘new normal’, we were still there for animals who needed us in 2021. We continued to rescue, rehabilitate, rehome and release many thousands of animals in need, just as we always have. At the same time, we found new ways of supporting communities, animal owners and our staff and volunteers through times of continuing hardship and unprecedented animal welfare challenges, while keeping up the pressure on policymakers to act to protect animal welfare.
## **Alarming rise in puppy imports**
As well as having to change our ways of working, the pandemic generated its own animal welfare concerns. For example, in response to a sudden huge demand for dogs – particularly puppies – during lockdown, we saw puppy imports from countries like Romania soar by 70 percent in 2021. Our covert teams investigated swiftly, and it was soon clear that organised criminal gangs were exploiting the demand by illegally trafficking puppies bred in poor conditions, often without proper health checks or vaccinations for serious diseases. Sadly, many buyers who thought they were getting much-loved family-bred dogs were in fact buying sick puppies sometimes just a few weeks old. Working with the government in Westminster, we secured a ban during 2021 on imports of puppies under six months old. We also urged prospective puppy owners to adopt, rather than shop, or to use our free _Puppy contract_ toolkit to help them buy responsibly.
## **Practical help for pet owners during COVID**
Like so many of her RSPCA colleagues, who all dug deep and found lots of ways to go the extra mile for animals despite COVID pressures, one RSPCA inspector helped make sure pets would not go hungry during the pandemic. The financial impact of the virus hit many pet owners, who struggled to afford food for their beloved pets. Inspired by the vital support to communities provided by food banks, Deputy Chief Inspector Alison Fletcher linked up with 35 food banks in the north of England, from Northumbria to Lancashire (the number has increased to 46 at the time of writing), to stock surplus pet food donated to local RSPCA branches by kind-hearted members of the public and by pet food brands Purina and Hills. At the same time, our inspectors and food bank volunteers were able to signpost people in crisis to get the support they needed to feed themselves, their families and their pets. “We set up this project as we understood what a strain the pandemic was having on people’s finances,” says Alison. “We wanted to ensure that loving pet owners who were struggling to make ends meet could still provide for their pets. The response from food banks across the north of England has been astounding and we have been so grateful for their support and for the support of all those who have donated food so far.”
TRUSTEES’ REPORT AND ACCOUNTS **2021[9]**
**W H AT W E A C H I E V E D F O R A N I M A L W E L F A R E I N 2 0 2 1**
**10**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
**----- Start of picture text -----**
We dealt with 138,965 animal
welfare incidents in 2021.
Here our inspectors rescued
two three-legged cats from
a house in Kent.
**----- End of picture text -----**
## Rescue and care
When animals are in need, we’re here to help.
Sounds simple enough. But we get about 3,000 calls to our cruelty and advice line every single day, as well as hundreds of interactions via our branches, centres and hospitals. We rescue and care for many thousands of animals every year – many of whom are physically, mentally and emotionally traumatised. In 2021 alone, our field officers were called out around 284,000 times to help animals – that’s more than 700 incidents every single day. So, it’s not simple at all. We aim to give every one of those animals the best possible chance of a new, safe and happy life. That means ensuring that, from the moment they come into our care, they get the right treatment and support, uniquely tailored to their individual situation. Once we’ve tended to any physical issues, they may need painstaking and expert rehabilitation, sometimes for many months. Infinite care must be taken to ensure their next move after leaving us will be the right one for them.
In 2021, we continued to adapt the way we worked, in response to fluctuating government guidelines around COVID-19. We were determined to carry on rescuing and caring for those animals who were most in need, but we had to balance that with safety for our teams and the public.
At the start of the year, COVID restrictions meant that people could not visit our centres and our rehoming figures were down. But the all-important rehabilitation work went on, including preparing our teams for an expected post-lockdown increase in workload. We invested in intensive training for staff, focusing on the behavioural needs of cats and dogs in our care. With staff wellbeing also in mind, we introduced special days for our teams during which they could share best practice and the lessons learned from difficult or distressing cases during another tough year.
An avian influenza epidemic hit the wild bird population at the end of 2021 (spreading to farmed birds later). We acted quickly to issue our teams with additional personal protective equipment (PPE) and guidance.
|**Table 1RSPCA advice and prosecution statistics**
**f Eld d Wl**|**Table 1RSPCA advice and prosecution statistics**
**f Eld d Wl**|**Table 1RSPCA advice and prosecution statistics**
**f Eld d Wl**|
|---|---|---|
|**or ngan an aes**|**2021**|**2020**|
|Telephone calls answered|1,081,018|1,016,455|
|Complaints of alleged
crueltyinvestigated|51,505|57,848|
|Welfare improvement advice
and notices dispensed|25,651|26,638|
|Cases reported to the RSPCA
Prosecutions Department|642|744|
|Suspects reported to the RSPCA
Prosecutions Department|922|1,045|
|Defendants convicted
(youth ofenders)|350 (4)|319 (3)|
|Convictions secured in
the magistrates’ or crown court
(youth ofenders)|751 (6)|629 (4)|
|TRUSTEES’ REPORT AND ACCOUNTS**2021**
|||
TRUSTEES’ REPORT AND ACCOUNTS **2021[11]**
## Our rescue and care work in detail
|**AREA**|**WHAT WE SAID WE’D DO IN 2021**|**WHAT WE DID**|
|---|---|---|
|**Response**|l Improve the ways in which people
can access help and reassurance
lIdentify/prioritise animals whose
welfare we are best placed to improve|l We answered 1,081,018 calls to our cruelty and advice hotline, 6.4 percent more
than in 2020
l We investigated 51,505 calls about cruelty, abandonment or neglect and dealt
with 87,460 incidents involving sick or injured animals
l We piloted new technology at our National Control Centre (NCC) in 2020 that
was subsequently introduced in 2021; among other things, it allows callers to share
their location and photos
l We achieved an average customer satisfaction score of 7.42 out of a total
possible score of nine, following customers’ initial calls to our NCC
l We worked with our partners and volunteers to ensure animals got the best care
from the right people, so we could focus on those we were best placed to help|
|**Rescue**|l Provide effective, high-quality
and consistent welfare intervention
by our Inspectorate where it is
most needed
l Deploy our Inspectorate
resources efficiently|l From January to May, we used a COVID-19 operating model that allowed us to
respond to animal welfare needs while also protecting the safety of officers and
the public
l We deployed 376 Inspectorate officers to carry out our priority work
l We successfully handed over the investigation and prosecution of all farm animal
welfare cases to the Animal and Plant Health Agency
l We introduced a new Inspectorate role, training 22 animal rescue officers (AROs)
to support inspectors, undertake complaint investigations and collect sick and
injured animals
l As part of the government flood rescue response, our Inspectorate flood teams
responded to emergency calls from all over England and Wales during Storm
Christoph and rescued animals in peril|
|**Care**|l Protect and optimise the welfare
of all the animals in our care
l Ensure consistent, timely and
expert-led welfare interventions|l We recruited a new head vet for companion animals
l We sent out our new welfare standards, including an updated licensing
agreement, to 11 private boarding establishments that had equines in their care,
which will ensure that both RSPCA equine centres and partners’ establishments
follow the same robust welfare standards
l We began implementing the Practical Welfare Assessment Matrix (P-WAM) for
equines in our care at our centres and boarding yards
l We introduced an online adoption process to safely match equines with
potential adopters
l As part of our plan to ultimately reduce our use of private boarding
establishments for all animals in our care, we began by reducing their use for
equines by 15 percent
l We kept our animal hospitals open to the public and animals brought in by
our Inspectorate throughout the pandemic, aligning the hospitals’ operations
with Royal College of Veterinary Surgeons advice|
|**Rehoming**
**and release**|l Have clear pathways from in-house
care to any partners or rehomers/
fosterers who are best placed to
improve animals’ welfare
l Base initial measures on
successful outcomes|l Our behaviour team continued to prepare advice and practical information
for adopters and pet owners
l Our centres and branches rehomed 48,615 animals in need
l We entrusted the care of 4,738 animals to partners or other organisations
(including our branches), an increase of 20 percent on 2020
l In order to continue our rehoming service, we made virtual home visits and
allowed appointment-only visits to our centres during COVID-19 restrictions|
**12**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
**Table 2 Number of animals taken in, treated, neutered and microchipped by the RSPCA in England and Wales in 2021**
## **Taken in**
**----- Start of picture text -----**
Wildlife
Cats Dogs and others Total 2021 Total 2020
20,188 7,412 32,192 59,792 55,170
Animal treatments: hospitals and clinics (excluding neutering)
Outpatients 36,403 Inpatients 10,626 Operations 2,753
Neutered
Other Branch Total Total
Cats Dogs animals animals* 2021 2020
3,330 906 629 41,941 46,806 49,093
Microchipped
Other Branch Total Total
Cats Dogs animals animals* 2021 2020
3,667 572 718 32,540 37,497 33,197
**----- End of picture text -----**
* Number of animals neutered and microchipped by RSPCA branches
## **Animal welfare impacts**
Many of the changes in 2021 involved realigning our resources to improve our capacity to help more animals. For example:
- l with additional veterinary capacity, expertise and experience, we’ll be able to deliver on our veterinary strategy, which aims to ensure every animal that comes into our care – including those with complex needs – will receive a consistent standard of care and treatment that will give them the best chance at life
- l care plans and welfare assessments ensure the animals in our care – and those being looked after by trusted kennels, catteries and stables – have the best welfare outcomes; they also allow us to track and assess their progress
- l the new COVID-driven approaches we adopted for rehoming (virtual home visits and getting-to-know-you sessions with potential adopters for animals with specific needs) actually allowed us to make better matches between animals and adopters.
## **Tailored care helps Felix and Albert to new lives**
Two very traumatised horses in our care for most of 2021 now have happy forever homes, thanks to excellent partnership working, using scientific knowledge and patiently focusing on the individual animals’ needs.
When Felix* and Albert* were seized from the same owner in 2020, they both had problems, but their problems weren’t the same. There was Felix, a 19-year-old who had been kept tethered and was not used to being outdoors – he was a dream to handle indoors, but was very stressed by open spaces. And then there was Albert, a much younger horse who was aggressive with his handlers and didn’t take well to being indoors. Added to this, while their case was pending, their owner refused to consent to castration or to allow them to mix with other horses, which was particularly difficult for feisty Albert.
Using our new Practical Welfare Assessment Matrix (P-WAM) tool, we worked with a behaviourist to look at everything that might be having an impact on Felix and Albert – their environment, their diet, their ability to express natural behaviours, their relationships with people and other horses, their health and overall quality of life. This science-based approach allowed us to come up with individually tailored plans for their care.
Both horses went to one of our trusted boarding stables, where their needs could best be met, and we worked closely with Blue Cross – a charity that cares for sick, injured and abandoned pets – which later continued the behavioural work we’d started.
For Felix, a temporary outdoor ‘pen’ was created around a tree in a field, using large fencing hurdles to reassure him that he wasn’t too exposed to open space. There was a hay net and treat balls for him to play with, and the tree acted as a scratching post. The hurdles were gradually moved outwards over time, allowing Felix to overcome his agoraphobia.
Albert was much happier being outside and was put on a training programme to help him cope with his hormonal changes and get used to handling. Both horses could socialise freely with each other and interact with horses on the other side of the fence.
Originally, the two horses would have been very hard to rehome because of their behavioural problems. But they improved dramatically with this individualised care and were both successfully rehomed by Blue Cross after their case had been concluded. The P-WAM assessment tool is now being used for all equines in RSPCA care and is being rolled out more widely to other animals.
* Horses’ names have been changed.
## **Working in partnership**
Ensuring limited resources are used where they are most needed and can do the most good is vital to the success of our 10-year strategy, _Together for animal welfare_ . One of the ways in which we will do this is by working in partnership with our network of local branches and with other animal welfare organisations. Here are just a few examples of our partnership working in 2021.
- l We linked up with **Battersea** , securing an agreement for our Inspectorate to take animals directly to **Battersea London** for detailed analysis and veterinary treatment. This has given our local teams insights and access to treatment opportunities previously unavailable, freeing up resources for us to increase our reach into local communities. .
- l **The Dogs Trust** increased its kennel capacity and reduced the number of dogs in its sites, providing new opportunities for both charities to work together. We worked with the Dogs Trust to explore ways in which we could tap into this resource.
- l We worked with **Blue Cross** on a number of joint initiatives, including analysis of opportunities in areas such as procurement, logistics and behaviour services, as well as in rehoming equines.
- l We met with **Cat’s Protection** to begin exploring collaborative ways of working.
- l Through the Second Chance scheme, we were able to place
- 60 horses into **British Horse Society** -approved riding schools.
TRUSTEES’ REPORT AND ACCOUNTS **2021[13]**
**W H AT W E A C H I E V E D F O R A N I M A L W E L F A R E I N 2 0 2 1**
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**----- Start of picture text -----**
One of four Shetland ponies
we rehomed after being part of
a multi-agency rescue in 2021.
**----- End of picture text -----**
## Advocacy
We will always speak up for animals. By campaigning for laws and behaviours that keep them from harm and by leading big conversations about animal welfare and our relationship with animals, we continually drive societal change to protect them.
For almost two centuries, we’ve championed their needs and spearheaded groundbreaking change on animals’ behalf. But there’s still so much to do. Our strategy to 2030 has eight bold ambitions to tackle the most urgent animal welfare issues over the coming years. Every year in this decade will see us making more progress against those ambitions and really changing animals’ lives for the better.
For example, after around 100 years of tireless campaigning by the RSPCA, 2021 finally saw a government commitment to ban live farm animal exports from England and Wales for further fattening and slaughter. Once this comes into force, no farm animals reared in the UK will ever again suffer the torment of live export for fattening or slaughter. In a typical year, we can expect to see one or two advances in legislation, but 2021 was a record year for us, with nine pieces of legislation in discussion or agreed in England and Wales. Improvements in 2021 included:
- l tougher sentences introduced for animal crimes under the Animal Welfare (Sentencing) Act 2021
- l a third-party ban on the sale of puppies in Wales and Scotland
- l a GB-wide agreement to raise the minimum age for imported puppies to six months
- l an agreement to ban the import of cropped-eared dogs (there has been a 1,243 percent increase in reports to the RSPCA of this cruelty over the past seven years and 10 prosecution cases) and to stop the import of pregnant bitches
- l agreements to enshrine the concept of animal sentience in legislation, to set up an independent Animal Protection Committee and to introduce an animal impact test to balance animal welfare issues against public policy considerations
- l agreements on animal sanctuary and rescue licensing in Scotland and consultation on measures in England and Wales
- l dog theft legislation introduced under the Kept Animals Bill
- l an agreement to introduce compulsory microchipping for cats
- l an agreement to ban the private keeping of primates (albeit via a licensing system)
- l maintenance of the ban on hunting with dogs, with trail hunting now banned on National Trust and National Resources Wales land, and Wales looking at a potential trail-hunting ban on all government land.
As well as legislative change, we encourage a compassionate society by working with the public to promote behaviours that everyone can adopt to change animals’ lives for the better. In 2021, we’ve seen that our campaigns are having a direct impact on people’s interactions with animals with, for example, more people buying products – such as non-caged eggs – from animals reared to higher welfare standards. However, continuing lockdowns prompted an alarming rise in imports of puppies raised in substandard conditions, so we moved quickly to change legislation and warn the public.
TRUSTEES’ REPORT AND ACCOUNTS **2021[15]**
## Our advocacy work in detail
|**AREA**|**WHAT WE SAID WE’D DO IN 2021**|**WHAT WE DID**|
|---|---|---|
|**Attitudes**
**and**
**behaviours**|l Increase the public reach of our
key campaigns
l Increase public engagement in our
key campaigns|l Over 18 percent more people participated in our campaigns than in 2020, with
161,298 actions carried out (exceeding our target of 150,000), including such things
as 15,256 people writing to the makers of ITV’s_I’m a Celebrity…Get Me Out of Here_
about the use of live animals and 17,068 writing to their local authorities about the
impact of fireworks on animals
l Our social media following grew to nearly 1.5 million and our messaging reached
feeds more than 392 million times across social media platforms, with more than
17 million views of our videos
l We recruited 50,329 supporters to our campaign network, an increase of
38.4 percent
l We worked with more than 100 partner organisations, including more than
50 outside the animal welfare sector, making the case that animal welfare and
human welfare are intrinsically linked
l Our stories reached around 75 percent of adults each month, making us one
of the most talked-about charities in the UK media
l Sales of free-range eggs passed the £1 billion mark in 2021 for the first time ever,
meaning more people chose eggs from birds reared to higher welfare standards
l We saw evidence of changes in behaviour towards animals, including a
33 percent reduction in calls about dogs left in hot cars after campaigns to remind
people to ring the police – not the RSPCA – for this
l Working as part of a coalition of NGOs to encourage higher-welfare chicken
supply in the UK through the Better Chicken Commitment (BCC), in 2021 we saw
five percent of supermarkets being BCC-compliant and 25 percent of UK chicken
suppliers being committed to meeting the BCC by 2026: notable 2021 sign-ups were
Burger King UK, Friday’s (formerly TGI’s), GLH Hotels (owners of the Hard Rock chain)
and Pieminister – with a partial pledge from Morrison and a commitment from
M&S to meet their existing BCC pledge by autumn 2022, using only RSPCA Assured
fresh chicken (reared to RSPCA welfare standards)|
|**Laws**|l Advocate for better animal welfare
laws, specifically on recognition of
sentience, protecting standards through
trade deals, ending the keeping of
primates as pets and ending the live
exports of farm animals
l Lobby governments in the UK,
England and Wales to keep animal
welfare on their agendas, and take
every opportunity to make progress
for animals
l Advocate for policy change
at institutional, corporate and
intergovernmental levels|l 10 percent more MPs supported animal welfare issues compared with 2020
l We achieved strengthened legislation in four areas
l We achieved commitments on nine long-campaigned-for issues, such as the
banning of live exports for further fattening or slaughter
l We achieved the following new laws:
l Sentencing Act 2021
l Licensing of Activities Involving Animals (Wales) Act 2021
l Two new laws began their progress through parliament:
l Sentience Bill
l Kept Animals Bill (which will include dog-theft legislation)|
**16**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## **Animal welfare impacts**
By working with legislators and the public, we can make things happen that will improve animals’ lives forever. For example:
l more consumers moving away from the purchase of animal products from lower welfare standards will gradually reduce the financial viability of such farming methods
l more people changing their behaviour towards animals – and sharing good welfare messages publicly – will generate wider change
- l more MPs engaging with animal welfare issues will ultimately mean better legislation to protect animals
l the nine pieces of animal welfare legislation agreed or under discussion in England and Wales in 2021 – the highest number achieved in the past two decades – will improve the lives of millions of animals.
## **Winning hearts and minds to drive change**
During a hectic year of campaigning on many fronts, we really boosted our ability to influence change in 2021, recruiting more than 73,000 willing supporters to our campaign network.
They showed they were right behind us on a multitude of issues, such as our campaign to bring in the Kept Animals Bill, which encompasses the ending of live exports of farm animals, the private keeping of primates and the puppy import trade. More than 19,000 people wrote to their MPs to help push this Bill along, making it one of our most popular campaigns in 2021. The Bill is now progressing through parliament.
More than 16,000 people also contacted their MPs in support of our #EndBSL campaign, calling on the UK Government to remove breed-
specific legislation that unjustly prohibits the ownership of four types of dogs, based on the erroneous belief that they are more dangerous than other dogs. The thousands of comments about this on social media included this one, which sums up the groundswell of support for our campaigns to achieve better animal welfare: ‘Keep fighting and keep pushing, RSPCA. If there’s one law that grinds my gears the most, this is it. I have signed every petition I’ve found, and engaged in campaigns on same. Innocent souls have died thanks to this legislation. I do understand the need for dog control, but there has to be another way’.
After we highlighted the possible suffering involved, more than 15,000 people sent letters to Ofcom to complain about the use of live animals on the TV programme _I’m a Celebrity…Get Me Out of Here_ . ‘I stopped watching the programme because of this…it’s time the producers listened! Thank you RSPCA for highlighting this to all,’ said one supporter on our Facebook page.
With our supporters taking hundreds of thousands of campaign actions around our many campaigns in 2021 – such as writing to MPs or supermarkets and signing petitions – we are making change happen by winning hearts and minds.
But we are keen to understand whether our campaigns are actually achieving behaviour change as well as legislative change. According to an RSPCA survey, our most recognised campaign is our annual _Dogs die in hot cars_ one. Though we received 33 percent fewer calls about dogs in hot cars in 2021, we intend to work with the police to see whether people reported incidents to them instead (as per our advice), or whether there was also a reduction in the numbers of dogs actually being left in hot cars.
_Rescue puppy Sasha was hand-reared at RSPCA Great Ayton Animal Centre._
TRUSTEES’ REPORT AND ACCOUNTS **2021[17]**
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**18**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Prevention
Preventing cruelty is in our name and it’s something we strive to do on multiple fronts: indeed, it’s one of the main pillars of our 10-year strategy.
In 2021, the first year in which we began implementing the strategy, we looked more deeply into the root causes of cruelty, instigated groundbreaking research into the issue of cruelty through neglect and established – or built on existing – academic and community partnerships. At the same time, we reviewed and updated the information we provide online, making it more accessible and relevant to the actual animal welfare situations our frontline teams regularly face in communities.
Of course, an important part of our work has always been to prevent cruelty by educating young people. Although the pandemic has had a hugely disruptive impact on our young people’s education, our community engagement managers (CEMs) worked tirelessly to support very grateful teachers and youth workers throughout England, delivering animal welfare messages through exciting and thought-provoking lesson plans. Working online, we engaged primary schools in our Compassionate Class activities and more than 300 secondary schools took part in our Great Debate, with some seven- to 11-year-olds also getting involved for the first time. Topics covered all animals (companion, farm, wild and those used in research), ranging from the pros and cons of dog licensing to the penalties handed down for animal cruelty and the sentience of crustaceans.
At our four education hubs based at RSPCA animal centres, our CEMs worked with social care providers and charities in disadvantaged neighbourhoods to really embed compassion for animals in those communities.
_Left: A graffiti project at RSPCA Newbrook Farm Education Centre in Birmingham celebrates nearly 200 years of our history including the formation of the Society and the first two female inspectors._
_Above: A wide range of animals – including crustaceans – are sentient beings. This means they have the capacity to experience positive and negative feelings such as pleasure, joy, pain and distress._
TRUSTEES’ REPORT AND ACCOUNTS **2021[19]**
## Our prevention work in detail
|**AREA**|**WHAT WE SAID WE’D DO IN 2021**|**WHAT WE DID**|
|---|---|---|
|**Community**
**engagement**|l Begin work to recruit one million
people by 2030 to support the
RSPCA and our animal welfare
work through our new community
education programme|l We began the foundational work on this project to understand where public and
community engagement can have the greatest impact on animal welfare, in relation
to our prevention work, campaigning, volunteering and fundraising
l In parallel, we entered a discovery phase to determine what people are most
interested in doing and how to engage them|
|**Information,**
**education**
**and support**|l Conduct a review of the
information, education and support
we provide|l Working with our Inspectorate, who are uniquely aware of animal welfare issues
in communities, we re-worked 410 information and advice pages for our website,
recognising both the needs of animals and the potential concerns of their owners,
who may be facing issues such as money worries, mental health problems or
relationship breakdowns
l New polling and tracking systems helped us understand people’s unique
needs, and the focus on neglect led us to create new resources for people facing
financial hardship|
|**Focus on**
**children**
**and young**
**people**|l Provide information, education
and support to children and young
people to encourage them to play an
active role in our activities|l 586,578 children and young people engaged in our education activities due to
the introduction of more virtual activities
l We added an interactive outdoor learning area to our Birmingham education
hub to help young people appreciate the needs of both animals and people in
economically and socially challenging situations
l Our four education hubs reached more than 40,000 young people, an increase
from 25,000 in 2020
l We expanded our programmes of online and hybrid learning|
|**Review all**
**prevention**
**work across**
**the RSPCA**|l Produce a model framework and
review our prevention activities|l We began working with Kent University on a new piece of in-depth research
into the causes of neglect, questioning frontline experts such as vets, other
animal charities, and our own Inspectorate, while also examining 250 of our
prosecution cases|
## **Animal welfare impacts**
We want everyone to understand that – whatever their age or circumstances – they have the power to change animal welfare for the better. Our education programmes, advice and information give people the tools they need, and by better understanding the causes of neglect or cruelty, we can prevent them from happening in the first place.
- l Building a groundswell of public support that includes all parts of society and difficult-to-reach groups who might not usually engage with us will help us promote important animal welfare messages and drive change.
- l Providing people with useful and relevant information using a non-judgemental tone of voice will help them take the right steps for their own animals’ welfare.
- l Providing multiple, engaging ways to encourage young people to question their beliefs about animals and their place in the world will help them understand animals’ crucial role, appreciate their needs and grasp what they can do to protect them.
- l Our in-depth research into the root causes of neglect will help us develop tools for preventing this common form of cruelty.
**20**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## **How caring for animals changed young lives**
Finding common ground with animals at our Birmingham education hub has had a dramatic impact on the wellbeing and ambitions of a group of young people who had been struggling with severe mental health issues – and now it’s being used to help more young people on a regular basis.
The group was being supported by Forward Thinking Birmingham (FTB), which contacted us after one young person – who had not felt able to leave their house for over a year – had said that something to do with animals might help them re-engage with education and the wider world.
We signed the young person up to our Paws for Change dog training and care course, designed specifically for vulnerable young people, which became a life-changing experience for them. Two of the therapists at FTB were so impressed, they worked with us to develop a bespoke individual programme for the young person in question, which went on to provide a framework for a six-week programme now being run throughout the year for other groups of young people.
Key to the course is helping participants to understand animal sentience and behaviour, exploring what makes both humans and animals feel safe and carrying out practical activities and other learning.
_Students taking part in our Wild Things projects at RSPCA Newbrook Farm in Birmingham. The projects deliver amazing experiences and bring essential animal welfare education to communities who have few opportunities to connect with nature, pets and wildlife._
The comments below from two of the young people involved say it all.
Mollie, who now volunteers with the RSPCA and wants to become an inspector one day, says: “This course has helped me so much with my confidence and wellbeing. Before this programme, I couldn’t leave the house, but this course pushed me to leave the front door and get past my fear of going outside…I met a lot of new people and it really helped with my anxiety. I used to find it hard making friends, but being in a group of supportive individuals where everyone was treated equally, no matter their background, really helped to build up my confidence…If you are a person that struggles, it could help and benefit you so much”.
Harry says: “This course was such an enjoyable experience and gave me something positive to do when I was in a low place. It helped to increase my confidence in talking to new people and gave me a chance to have my voice heard”.
The COVID-19 pandemic saw an increase in demand for mental health support for young people. Our education hubs adapted quickly to help meet that need – working with agencies such as the NHS, Barnardos and local authorities – to provide programmes for young people suffering from exclusion or mental health difficulties.
TRUSTEES’ REPORT AND ACCOUNTS **2021[21]**
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**22**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Supporters
All of the achievements we’ve set out in these pages – all of the ways in which we are helping animals in desperate need and all of the ways in which we contribute to a kind and compassionate society – are made possible entirely by the generosity of our supporters.
Without them, we would not be able to do what we do. In 2021, we received more than 500,000 donations from the public – a humbling indication of the strength of the desire to see a better deal for animals and of people’s trust in us to make it happen.
We did all we could to reach as many people as possible with our communications, and our fundraising efforts were very successful in 2021, notably in response to our two big campaigns: Cancel out Cruelty and Join the Rescue. As always, people supported us in a multitude of ways – they gave us their energy, time and money, organised events, pledged gifts in their Wills, bought our products and added their voices to ours in calling for change.
Thanks to that unwavering support – still freely given, even though we were all living through an extremely challenging pandemic – we were able to continue to rescue, care for, rehome or release animals in trouble, speak out for them on the world stage and influence changes in attitudes and actions.
TRUSTEES’ REPORT AND ACCOUNTS **2021[23]**
## Our supporter work in detail
|**AREA**|**WHAT WE SAID WE’D DO IN 2021**|**WHAT WE DID**|
|---|---|---|
|**Engagement**|l Deepen our relationship with our
supporters and inspire more people
to support us
l Deepen our supporters’ and
members’ understanding of our brand|l We saw a four percent increase in enquiries and pledges for legacies
l 45,184 new people committed to donating to our work regularly, and 55,583
additional people made one-off donations
l More of our regular donors chose to stay with us throughout 2021 than in the
previous year
l We inspired our members and around 50,000 supporters with stories covering all
areas of our work in_Animal life_magazine, focusing on the animals we helped
l Our_Animal action_magazine engaged around 60,500 young supporters under 12
years old, developing their understanding of animal welfare and what we do through
rehabilitation and rehoming stories, animal fact files, quizzes and competitions
l We were the fourth and sixth most talked-about charity in traditional and social
media (fourth and sixth among all charities, respectively, and top animal charity),
generating an average of 130 mentions a day in printed, online and broadcast media
l We launched on the video-sharing app TikTok and enjoyed viral success with
two videos|
|**Partnerships**|l Partner with people and
organisations that share our ambition
to improve animal welfare|l We managed and stewarded 29 corporate partners, raising more than £1 million
in cash and gifts in kind
l Our Pets at Home partnership has resulted in the RSPCA rehoming more than
335 cats through in-store adoption centres, promoting responsible pet ownership
and reaching two million customers through the VIP lifelines scheme
l Nestle Purina helped 101 rescue dogs start their new lives by funding the expert
behaviourist care and support they needed to be rehomed; they also donated
pet food to our centres and branches
l RSPCA Pet Insurance, underwritten and provided by Covea Insurance, allowed
our supporters to insure their pets and help them in their time of need, while
raising vital funds to support our frontline rescuers|
|**Commercial**|l Develop and grow our
commercial activities|l Our commercial activities are driven through retail trade partnerships, our branch
and animal centre network and directly with customers via our digital platforms;
during 2021 our ecommerce shop received more than 121,000 visitors, with more
than five percent of those making a purchase and donating
l We began a comprehensive review of all our commercial activities, which will
determine growth opportunities and a clear roadmap for our commercial strategy
for the future|
|**Membership**|l Grow our membership and retain
more members|l At 31 December 2021 we had 16,622 members (2020: 17,022), which represents
a slight drop in the number of members year on year
l However, we were successful in recruiting 876 people as new members – more
than in the previous year (2020: 745)
l The overall number of members dropped due to a higher number of people
cancelling their membership (2021: 15,742 vs 2020: 16,277)|
**24**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
_Toby at RSPCA Ashley Heath Animal Centre is following a behaviour and welfare plan – here he’s becoming familiar with a home environment ready for rehoming._
## What some of our amazing supporters say about the RSPCA
**“** We support the RSPCA because the welfare of animals has always been of major concern to us, particularly that of dogs, whose love and loyalty is often repaid with appalling cruelty and neglect. Our decision to leave a legacy to the RSPCA in our Wills is because we appreciate the extent and harsh reality of their work and the fact that they receive no government funding. **”**
## **Eileen**
**“** I support the RSPCA because I think the work you do is amazing – my passion is for all the animals. But my love is mainly for dogs and horses. I am leaving a gift in my Will so your work can go on after I have gone. **”**
## **Susan**
## **Making compassion count**
Vital support for the most traumatised dogs in our care is now provided in many of our centres, thanks to the kind-hearted support of some of our key partners. In 2021, this funding enabled life-changing interventions for dogs who have experienced terrible cruelty, preparing them for new lives in happy, forever homes.
Year by year, we match the interests of key partners – companies, philanthropists and trusts – to particular aspects of our work so that they can see the impact their donations have on the lives of the animals we rescue and care for.
In 2021, some of our key partners enabled us to provide home-fromhome rooms in two of our centres for dogs who were the subjects of prosecution cases. These dogs often have to stay in kennels for longer than we’d like while their cases are brought to trial. They may never have lived indoors before, so the rooms are designed to help them adjust to a home-like environment, with all the items, textures and noises they might experience in a typical home. They get time out from their kennel and a chance to become familiar with normal domestic life, so they are more prepared for eventual adoption.
Thanks to key partnership giving, we were also able to recruit behaviour and welfare advisors at eight of our centres in 2021. They are experts in recognising and addressing the difficult behaviours some dogs can display as a result of psychological trauma. Each dog is assessed and a plan created for behavioural training and welfare improvements. Again, this work is vital in ensuring dogs can adjust to and enjoy their new lives in safe, caring homes.
We are also continuing to invest in key partner relationships, which generates funding for specialist rescue equipment and essential equine-related work in 2021.
## **Animal welfare impacts**
All of our work with supporters is about ensuring they know how their efforts and donations are used to make a difference to individual animals now, through our rescue and care work, and to all animals in the future, through our campaigns.
**“** I have always cared a great deal about the welfare of all animals, even since I was a child – my spirits are uplifted by simply watching the gulls using the wind to fly effortlessly over the sea – or the antics of the birds on my garden bird table. I also have a couple of cats at any one time and have adopted from you in the past. In a world seemingly full of human cruelty your work is vital, and when my time comes I will part this life knowing that I’ve done my best to help… that will comfort me. **”**
## **GB**
**“** I have been an animal lover all my life and I am horrified to see some of the suffering and neglect suffered by animals. Fortunately, the RSPCA has always been there to address these problems. **”**
## **Robert**
**“** To all my friends with or without fur on, I wish the best of everything. Keep up your good work looking after the animals. Bless every one of you. **”**
## **Wendy**
**“** Many thanks for your news about all the ways in which you are working to improve the lives of the animals with whom we share our lives and our world. I am very pleased to be able to support you in some small way. **”**
## **Margaret**
**“** I’m very happy to contribute to anything else which our inspectors need as they are the link between life and death for so many animals. **”**
## **Wanda**
TRUSTEES’ REPORT AND ACCOUNTS **2021[25]**
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**26**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Organisational effectiveness
## **People and culture**
The pandemic has been a strain for many people and, throughout 2021, we focused on supporting our staff and volunteers through uncertain and unusual times, for example with flexible working hours and our furlough scheme. Making their wellbeing a priority, we developed a strategy to promote physical and mental health, wellness activities and a safe working culture. This includes a range of initiatives, such as mental health training and support for people working with vulnerable people in communities and/or dealing with trauma.
As a well-established, much-loved and respected part of UK society, the RSPCA should reflect all of society, so that it can be relevant to everyone. In 2021, working with the company Cadence, we started building our diversity and inclusion strategy, to ensure better representation across our workforce and volunteer base. We revised our dignity and respect policy, introduced equality, diversity and inclusion (ED&I) training for all staff, became a Disability Confident employer and introduced initiatives around Black History Month and LGBTQ+ History Month. We introduced a new work-in-confidence platform, a leadership development programme and training for all staff on safeguarding, cyber security and health and safety (H&S).
We modernised our working culture by introducing our ‘Hello Hybrid’ scheme, offering many of our office-based staff flexibility over where and when they work. We developed a new set of familyfriendly maternity/paternity/adoption policies and benefits and also successfully introduced a new performance contribution system, which allows priorities to be aligned to both the RSPCA strategy and individual development.
_Left: Our water rescue specialists rescued a swan with fishing wire bound around its leg from a fishing lake. Above: We introduced ‘Hello Hybrid’ – a scheme offering many of our office-based staff flexibility over where and when they work._
TRUSTEES’ REPORT AND ACCOUNTS **2021[27]**
**Table 3 Key people data 2021**
|**Headcount**
(as at 31 December 2021)|l Total: 1,505 workers
l 1,404 employees (93%)
l 54 casuals (4%)
l 47 contractors (3%)
l 2.81% declaring a disability|
|---|---|
|**Employee turnover**
January–December 2021|l Voluntary (permanent employees only):
l 11.48% (which compares favourably to the
l UK third-sector average of 16% in 2020)*
l Overall turnover: 11.62%
l Voluntary (permanent and fxed terms
l employees): 13.05%
l Overall turnover: 13.19%|
|**Average days lost**
**to sickness**
12 months to 31 December 2021|l 9.16 days (the median number of sick
l days taken per employee in the UK third
l sector in 2020 was 9.1)*
l Average employee headcount for 2021
l was 1,465 including casuals|
|**Gender split**
(as at 31 December 2021)|l Female: 1,058 (72.5%)
l Male: 400 (27.5%)|
|**Gender split**
**as identifed by**
**the employee**
(as at 31 December 2021)|l Female: 59.5%
l Male: 24.5%
l Transgender: <1%
l Prefer not to say: 3%
l Blank response: 12|
|**Ethnic origin**
(as at 31 December 2021)|l English/Welsh/Scottish/Northern Irish/
l British: 81%
l BAME: 2%
l Other: 3%
l Prefer not to say: 3%
l Blank response: 11%|
|*Source Agenda Consulting||
## **Chief executive’s remuneration**
The chief executive’s remuneration was benchmarked and reviewed in May 2021.
The RSPCA chief executive is paid a total cash payment (including base pay and car allowance) of £157,639. This is towards the lower end of the scale for chief executives of charities of a similar size.
## **Financial sustainability**
We came into 2021 having suffered three years of operating deficits, which we had funded by drawing down on our reserves. The underlying deficit had been compounded by further challenges caused by the pandemic, and in 2020 we took the difficult decision to restructure the organisation to reduce our costs. We are pleased to report that this contributed to a significant financial turnaround in 2021. We ended the year with a net operating surplus and could start 2022 on a much firmer footing. Our legacy income in 2021 was the highest ever, partly the result of a catch-up in the process for granting probate after the delays of the previous two years. We made some savings too – the pandemic continued to impact some of our operational and fundraising work – and the benefit of our organisational restructure and other cost-management actions played their part. The operating surplus means we can now rebuild our reserves and set aside funds for critical strategic investment, allowing us to be more resilient in the future. This will include the evaluation, planning and implementation of the necessary change to our current operating model against the ambition in our strategy.
_Common seal Callisto came into our care having been found underweight and alone. After rehabilitation, he was released back to the wild by the team at RSPCA Mallydams Wood Wildlife Centre._
*Source Agenda Consulting
**28**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Our organisational work in detail
|**AREA**|**WHAT WE SAID WE’D DO IN 2021**|**WHAT WE DID**|
|---|---|---|
|**People**
**and culture**|l Foster a modern, inclusive and
entrepreneurial culture so the
RSPCA is a great place to work that
drives forward our vision, mission
and strategy
l Carry out a staff survey to establish
a benchmark within the sector
l Pursue accreditation and charter
mark standards to demonstrate what
a great a place the RSPCA is to work|l We appointed Cadence to support us with our ED&I strategy
l We introduced a work-in-confidence platform to allow staff to speak freely
and in confidence
l We surveyed staff over new working arrangements in offices and the field,
and introduced ‘Hello Hybrid’ for our office-based workers
l We became a Disability Confident employer
l We signed up to The Big Promise – Race Equality Matters, and supported
Black History and LGBTQ+ Months
l We introduced trauma resource management support for our frontline staff
l We provided mental health training for managers
l We ensured staff completed mandatory training on ED&I, safeguarding,
H&S and cyber security
l We introduced much improved family-friendly policies, which will help us
become a great place to work
l We began improving H&S standards across the organisation
l We used technology to develop more efficient and effective HR processes
l We moved our pension provision to a master trust with Legal & General|
|**Financial**
**sustainability**|l Ensure we are a financially sustainable
organisation that lives within its means
and can invest in the future|l We delivered a surplus for the year of £70.5m (2020: deficit £28.8m)
l Our free reserves increased by £13.6m (2020: decreased by £4.1m)
l We generated a net cash outflow of £2.1m (2020: inflow of £4.7m)|
|**Technology**|l Embrace technology across the
RSPCA to drive efficiency, allow
informed decision-making and a
better experience for our people,
supporters and, ultimately, for animals|l We began a multi-year digital transformation programme to upgrade our IT
l We improved our Inspectorate tasking system
l We expanded our use of supporter relationship management (SRM) solutions
to include partnerships and philanthropy|
|**Governance**
**and**
**leadership**|l Demonstrate the highest standards
of governance and leadership,
ensuring they are fit for purpose
for a charity of our standing|l We reviewed and updated our scheme of delegation
l We completed a Board performance review and skills-gap audit
l We approved a new Board of Trustees’ appraisal procedure
l We completed individual performance reviews/appraisals for all Board members
l We reviewed and updated all our governance policies to ensure that they
remain fit for purpose|
|**Branch**
**network**|l Develop and strengthen our
partnership with our branch network
l Reduce the number of branches in
national administration to less than
five percent
l Make sure our branch network
is sustainable for the future with a
modernised governance|l We developed a new approach for managing branches in national administration
(i.e. the Branch Afairs Committee may appoint temporary trustees to manage the
afairs of a branch)
l 13 branches were in national administration – this is the same figure as in 2020,
but it applies to different branches
l Three branches returned to local control
l Two branch mergers were completed
l Five branches entered national administration
l We conducted a review of the financial relationship between the national
Society and our branches|
TRUSTEES’ REPORT AND ACCOUNTS **2021[29]**
**Branch** l Our branches participated in an RSPCA-wide animal welfare survey, conducted **network** by our veterinary team, which will show us how we can better support branches **(continued)** on clinical and welfare matters l We assessed branches’ needs and priorities for online resources and identified development options with an action plan for 2022 l We developed and introduced a senior branch partnership manager (BPM) role l We reviewed branches’ requirements and developed revised roles for BPMs l We developed and introduced a branch trustee recruitment toolkit l We developed a suite of management information reports charting essential indicators for branch health
## **Family life matters**
The RSPCA is all about building a truly compassionate world, and that includes making sure our own people are properly supported throughout their time with us. In 2021, we wanted to look at how we could better support them in their family lives, particularly in those big moments that matter so much to all of us – moments like birth, adoption, the loss of a loved one.
As a result, we now have a set of supportive, family-friendly policies – see the table below. All go beyond statutory requirements and – particularly in the areas of maternity, paternity, adoption, shared parental benefits and bereavement – some are very progressive and better than those offered by many other organisations.
For example, one of the new benefits is that staff members who are partners of a birth parent can attend antenatal appointments without losing pay. Couples can attend appointments for IVF treatments too.
**----- Start of picture text -----**
Family-friendly initiatives
PROVISION STATUTORY CURRENT RSPCA NEW RSPCA FROM JANUARY 2022
Weeks 1–6: 90% of week pay Weeks 1–6: full pay Weeks 1–14: full pay
Maternity pay Weeks 7–39: maternity pay (SMP)Statutory Weeks 7–39: SMP Weeks 15–28:Weeks 29–39: half pay SMP
Weeks 1–6: 90% of week pay Weeks 1–6: full pay Weeks 1–14: full pay
Adoption pay Weeks 7–39: adoption pay (SAP) Statutory Weeks 7–39: SAP Weeks 15–28:Weeks 29–39: half pay SAP
Shared parental Weeks 1–6:Weeks 7–39: 90% of week pay SMP Weeks 1–6:Weeks 7–39: full pay SMP Weeks 1–14:Weeks 15–28: full pay half pay
leave Weeks 29–39: SMP
2 weeks of Statutory 2 weeks at SPP rate 4 weeks at full pay
Paternity leave paternity pay (SPP) rate
Antenatal 2 appointments unpaid 2 appointments unpaid 5 appointments paid
(Partner)
Adoption 2 appointments unpaid 2 appointments unpaid 5 appointments paid
(Partner)
Bereavement leave 2 weeks at statutory rate 2 weeks at statutory, to include 5 days paid, Up to 10 days paid
(relating to childbirth) then unpaid as required
Compassionate No statutory requirement 5 days paid, then unpaid as required Up to 10 days paid
leave
No right for paid time off No right for paid time 5 appointments paid
IVF for IVF treatments off for IVF treatments
**----- End of picture text -----**
All the policies are gender-neutral and anyone on our old system who was on maternity leave at the end of 2021 was transferred to the new system when it was introduced in 2022.
These moves will mean we can attract the best people when we’re recruiting, and keep those amazing people we already have in our teams. Whatever is going on for them outside work, we want them to feel secure and to know we value them.
## **Animal welfare impacts**
Having an effective organisation is about being fit for purpose in the 21st century, so that we can continue to make a difference to animal welfare as we head into our own third century. In particular:
- l a more representative workforce will allow us to better engage with the whole of society, so we can influence changes in attitudes and behaviour and attract more support, ultimately improving more animals’ lives
- l happy, nurtured, supported staff will mean we will be able to keep the best talent in our organisation
- l improved H&S standards for our people also result in improved H&S standards for the animals in our care
- l financial sustainability will allow us to go on protecting animals for many years to come
- l our digital transformation programme will allow us to drive efficiencies and improve our interactions with the public, whose support we need in our animal welfare work
- l better tasking allows us to get our inspectors on the road to animals in need as quickly as possible
- l a focused, effective Board allows us to plan and deliver on the bold animal welfare goals set out in our 2021–2030 strategy, _Together for animal welfare_
- l effective branches that are properly supported can continue the vital animal welfare work they conduct in our communities.
**30**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## The year ahead
As we move into year two of our strategy, with our eight bold ambitions in mind (see page 8), we know there are both challenges and opportunities ahead.
The COVID-19 pandemic is still affecting us to some extent. As well as dealing with its impact, we are assessing its implications for the future of the RSPCA and – most importantly – how it might affect animal welfare in the short and long terms. For example, there was a greatly increased public demand for pets during the lockdowns. This COVIDdriven rise in pet ownership has been followed by an economic downturn, which could lead to more animals suffering neglect, cruelty or abandonment. This will put our Inspectorate, centres, hospitals and branches under more strain than ever. Our science and lobbying teams are also stretched, being in great demand to supply advice and guidance to governments and competent authorities. And with the traditional, office-based working model turned on its head, there are both exciting opportunities and new challenges for us in terms of remote working and ensuring digital excellence.
Meanwhile, animal welfare is very much in the spotlight in the political and business arenas. The government has adopted many of our campaign issues in its own _Action plan for animal welfare_ , and many corporate bodies are making more – and more visible – commitments around animal welfare.
Nevertheless, post-Brexit, we need to work harder than ever to keep the focus on protecting, enhancing and sharing the UK’s world-leading animal welfare standards.
The Free Trade Agreement (FTA) reached with Australia and the Agreement in Progress with New Zealand have no conditionality relating to animal standards. This is a poor model for the FTAs being negotiated in 2022 with Mexico, Canada and India, and we must ensure animal welfare is properly safeguarded.
So, 2022, will see us constantly changing and adapting in line with our business plan, in order to stay on track and keep our sights on those all-important animal welfare gains we are determined to bring about by 2030.
TRUSTEES’ REPORT AND ACCOUNTS **2021[31]**
## Our focus in 2022
|**PRIORITY**|**AREA**|**WHAT WE’LL DO IN 2022**|**ANIMAL WELFARE IMPACT**|**HOW WE WILL MEASURE**
**OUR PROGRESS**|
|---|---|---|---|---|
|**Rescue**
**and care**|**Response**|l Enhance our National Control Centre
(NCC) service offering in order to
improve customer experience and the
success of our rescue and care work
l Set performance expectations for
continuously improved call handling,
scheduling and onward action
l Implement multiple channels for the
public to reach our NCC
l Begin to deliver savings of £9 million
over eight years
l Improve data quality
l Develop customer satisfaction
surveys
l Introduce webchat
l Establish automated animal outcomes
l Look at introducing incident
prioritisation functionality
l Implement animal custody tracking|l Improved efficiency will
allow us to ensure we get
to the animals most in
need quickly
l Better customer satisfaction
will contribute to our
reputation and encourage
the public to report instances
of animal cruelty, neglect
or abandonment
l Webchat will help us work
with the public to ensure
resources are diverted where
they can help the most|l Enhanced customer
satisfaction
l Improved success in rescue
and care work
l Improved data quality
l More emergencies reached,
more quickly|
||**Rescue**|l Continue working towards achieving
statutory powers for inspectors
l Continue the roll-out of the animal
rescue officer (ARO) role
l To free up more time for frontline
officers, a campaign to recruit more
wildlife casualty volunteers is underway;
their remit will be extended to
include transportation of some
domestic animals|l A more efficient Inspectorate
service will be able to respond
quickly where most needed
l Nurturing inspectors and
protecting their wellbeing will
allow them to cope with the
most difficult and distressing
rescue situations
l AROs will conduct rescues
where animals are in danger
or distress, investigate
complaints and conduct initial
investigations in the case of
suspected crimes, which will
allow us to reach more animals
in need|l Improved response times
l Improved staff wellbeing|
**32**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
|**PRIORITY**|**AREA**|**WHAT WE’LL DO IN 2022**|**ANIMAL WELFARE IMPACT**|**HOW WE WILL MEASURE**
**OUR PROGRESS**|
|---|---|---|---|---|
|**Rescue**
**and care**
**(continued)**|**Care**|l Complete the design phase of the
Animal Journey transformation programme
and begin to transition to a new model
l Begin implementing our new
veterinary strategy, which we’ll
deliver alongside the Animal
Journey programme
l Standardise fee structure and maximise
savings around laboratory provision|l These measures will ensure
all animals in our care receive
the best care possible, tailored
to their situation, while also
rationalising expenditure so that
we can care for more animals|l Design phase of Animal
Journey transformation
workstream complete|
||**Prosecution**|l Continue working with government
on handing over our prosecution
programme|l Moving all of our prosecution
work over to the Crown
Prosecution Service (CPS) will
allow us to redistribute our
resources more effectively to
help deliver on our strategy|l Options for handing over
prosecution cases to the
CPS piloted|
|**Advocacy**|**Attitudes**
**and**
**behaviours**|l Join campaign activity up by organising
our work into major themes to give a
sense of narrative across our campaigns
l Underpin our advocacy work with
a new policy book that sets out the
principles on which our policies are
founded, and our vision for animal welfare
l As part of foundational work for an
ambitious thought-leadership programme,
we’ll publish a book of essays by high-
profile thinkers drawn mainly from outside
the animal welfare sector
l Launch our annual_Wilberforce_
_Lecture_series, modelled on the BBC
_Reith Lectures_, to reach new audiences
l Begin the foundational work on
a commission on challenges and
opportunities for animal welfare to
2050 and beyond, focusing on the links
between animal and human welfare,
environmental sustainability and how
we can move to a cruelty-free future;
results to be published in 2023 and 2024
l Begin creating an annual communications
‘moment’ for the RSPCA with a Kindness
Index, which will report on the question
‘how kind are we?’
l Reflect on the 200th anniversary
of the first animal welfare legislation
anywhere in the world, the Richard
Martin Act 1822, as part of the
build-up to the RSPCA’s 200th
anniversary in 2024|l Keeping animals and animal
welfare at the centre of public
discourse will ensure it has the
same recognition and focus
as topics like social inclusion,
fairness, equity and community
l Taking questions about
animals and their welfare
into the public domain
will encourage people
to think about their own
responsibility and the nature
of the relationship between
humans and animals, as well as
positioning us as the drivers of
the debate on animal welfare
l The Kindness Index will focus
the nation’s attention on how
compassionately we interact
with animals and on how
important they are to us
l Building up to the RSPCA’s
200th anniversary will
encourage public respect,
support for our work and
a desire to get involved|l The level of media coverage
and social media interest
around thought leadership and
Kindness Index activities
l Increase in financial support
l Increase in volunteer base
l Four campaign initiatives
underway with non-animal-
welfare organisations
l 25 percent increase
in campaigners
l 150,000 actions achieved
with individual campaigns
achieving 6,000 on average
l More young campaigners|
TRUSTEES’ REPORT AND ACCOUNTS **2021[33]**
|**PRIORITY**|**AREA**|**WHAT WE’LL DO IN 2022**|**ANIMAL WELFARE IMPACT**|**HOW WE WILL MEASURE**
**OUR PROGRESS**|
|---|---|---|---|---|
|**Advocacy**
**(continued)**|**Laws**|l Work with our Eurogroup for Animals
and World Federation for Animals
partners to drive forward our UN work
to secure a declaration or convention
on animal protection
l Take a significant step towards
this early in 2022, by securing a
groundbreaking resolution at the
United National Environment Agency
Programme (UNEA5) – the equivalent
of a COP – establishing that animals are
sentient and that their welfare should
be protected
l See increased sentencing on illegal
hare coursing
l See agreement on the Sentience
Act, bringing in a new government
Sentience Committee
l Advise on negotiations for a Free
Trade Agreement (FTA) with New
Zealand and four other countries, with
an FTA with Australia coming into force
l Agree a new production-labelling
approach
l Revise our farmed animal standards,
raising welfare requirements and
investing in analysis of salmon standards
l Deliver a campaign on antimicrobial
resistance|l Establishing global standards
for animal welfare will mean
that all animals will have the
protection they need
l The new laws introduced
will mean:
l no more live farm animals
will suffer by being exported
for slaughter/further fattening
from the UK
l no more puppies reared to
poorer welfare standards will
be imported, halting this trade
l dogs with cruelly cropped
ears will no longer be imported,
reducing demand
l fewer primates will be kept
privately and the standards
in which primates are kept
privately will improve
l reports of hare-coursing
incidents will reduce
l fewer hare-coursing dogs
will be abandoned when no
longer deemed useful
l there will be fewer
dog thefts
l fewer dogs will be bred
and sold under sub-standard
welfare conditions in Wales
l more chickens will be reared
to RSPCA welfare standards
l farm animals transported
within GB will experience
better transport conditions
l consumers will have greater
awareness of how their food
is produced|l Achievement of the
resolution
l Agreement/implementation
of six new laws in England
and Wales|
|**Prevention**|**Information,**
**education**
**and support**|l Streamline and optimise our online
information, advice and guidance
l Maximise our reach into communities
by exploring collaborations with existing
services that are already in touch with
our audiences|l Finding more effective
ways to communicate with
all our audiences, including
hard-to-reach groups, will help
us spread our animal welfare
messages more widely|l Advice pages reviewed
and updated
l Links with other services to
deliver messages|
**34**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
|**PRIORITY**|**AREA**|**WHAT WE’LL DO IN 2022**|**ANIMAL WELFARE IMPACT**|**HOW WE WILL MEASURE**
**OUR PROGRESS**|
|---|---|---|---|---|
|**Prevention**
**(continued)**|**Focus on**
**children**
**and young**
**people**|l Continue our education work in
schools and in community settings
l Pilot new operating models and scale
up the most successful
l Develop a theory of change for
getting animal welfare into the National
Curriculum, with the intention of
launching this in 2023|l Teaching animal welfare as
part of the National Curriculum
will mean all children are taught
about animal welfare and will
grow up with an understanding
of animals’ needs – this will
help drive down cruelty to
animals over the next decade
and more|l Theory of change developed
l Progress towards delivery in
2023 – all the building blocks
in place to support the
increased reach of our
education work
l Two pilots underway testing
new ways of working|
||**Review all**
**prevention**
**work across**
**the Society**|l Move from the strategic planning
stage to implementation of our
transformation programme for
prevention of cruelty to animals,
focusing on three dimensions: the
scale of intervention; the type of harm
to animals; and the reason for the
harm caused
l Establish a prevention, knowledge
and insights group – a forum bringing
together people from across the
RSPCA to horizon-scan for upcoming
animal welfare issues and suggest
preventative actions|l An effective prevention
strategy will allow us to
prioritise and target where
we can have the greatest
impact, and will mean millions
of animals will not suffer
from cruelty, neglect or
abandonment in the future
l The new prevention,
knowledge and insights group
will allow us to intercept and
mitigate emerging or existing
animal welfare trends to
minimise the impact on our
frontline services|l Implementation under way
l Knowledge and insights
group established
l Reduction in cruelty based
on stats|
|**Supporters**|**Engagement**|l Deliver our new audience strategy,
build understanding of our audiences and
use those insights to review and refresh
ways in which they can get involved
l Develop plans to grow our income
over the next few years
l Increase the number of business and
high-impact strategic partnerships
l Initiate a review of the brand to ensure
it represents the RSPCA in the modern
world and its vision for the future
l Analyse and benchmark current
social media work and create a plan to
increase audience interaction
l Ensure we have a strong pool of
ambassadors and influencers who appeal
to the people we are trying to reach
l Deliver a volunteering manifesto
outlining a single strategic approach to
volunteering, which will attract, inspire
and retain a diverse volunteer base
that reflects local communities and
modern society|l Engaging more people in
fundraising, volunteering and
campaigning will significantly
enhance our resources for
improving the lives of animals
l Working hand in hand with
businesses and high impact
partners, we can improve
knowledge and understanding
of animal welfare as well as
increasing our income and reach
l A brand that is clear about
our impact and the role of the
RSPCA in animal welfare will
encourage more people to get
involved and will ensure the
public recognises, understands
and is inspired by what we
stand for
l Our RSPCA Ambassadors
will help us attract the
attention of more people and
build understanding about
animal welfare|l Quality and quantity of
people engaging with us
l Loyalty of people engaging
with us
l An increase in the diversity
of people who volunteer
l Reduction in attrition
of volunteers
l Increase in volunteer
super campaigners
l Increased social media
interaction
l Better brand recognition|
TRUSTEES’ REPORT AND ACCOUNTS **2021[35]**
|**PRIORITY**|**AREA**|**WHAT WE’LL DO IN 2022**|**ANIMAL WELFARE IMPACT**|**HOW WE WILL MEASURE**
**OUR PROGRESS**|
|---|---|---|---|---|
|**Supporters**
**(continued)**|**Engagement**
**(continued)**|l Map the lifetime journey of
supporters to improve engagement
and commitment
l Develop plans for our 200th
anniversary celebrations in 2024, using
an audience-centric approach
l Outline an approach to onboarding
new supporters, linked to our
audience strategy, brand review work,
communities strategy and advocacy
work, which will celebrate our past and
our successes, while focusing on why
we are relevant today and will be for
years to come
l Develop overarching messaging and
a schedule of key events to engage
different audiences
l Develop our communities strategy
and advance our work to create a
million-strong movement for
animal welfare|l With a diverse volunteer
base, all communities will
have the opportunity to help
us deliver on our strategy to
improve animals’ lives by 2030
l By improving the experience
of people who engage with us,
we build their commitment to
do more
l Our 200th anniversary is
an opportunity to assert our
vision for animal welfare in the
future and invite others to join
with us in achieving it
l Creating a million-strong
movement for animal welfare
will support us in reducing the
amount of preventable animal
neglect that currently drives a
disproportionate amount of
our work||
||**Innovation**|l Enhance our product offering for
target audiences through the use of
audience insights, allowing us to design
new ways to engage|l Products with the right
features and benefits will be
more attractive to the people
we are trying to engage in
raising money, volunteering and
campaigning activities – all of
which allows us to help more
animals and prevent cruelty
and neglect|l The number and
performance of new products|
||**Partnerships**|l Introduce six new business
partnerships
l Implement partnership development
plans, detailing the stewardship actions
required to maintain or grow income
from our existing partnerships|l Business partnerships can
have multiple benefits across
the organisation ranging, for
example, from income and
reach through to gift-in-kind
support for branches and
pro-bono support, all of which
enable us to provide better
care for animals|l Quality and quantity of new
business partners
l Movement of business
partners through their
development plans|
**36**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
|**PRIORITY**|**AREA**|**WHAT WE’LL DO IN 2022**|**ANIMAL WELFARE IMPACT**|**HOW WE WILL MEASURE**
**OUR PROGRESS**|
|---|---|---|---|---|
|**Organisational**
**effectiveness**|**People and**
**culture**|l Implement a new ED&I strategy
to mobilise activity to improve our
equality, diversity and inclusion record,
reflecting the communities in which
we operate
l Appoint dedicated leadership to
design and implement a roadmap
for change
l Focus on leadership and
management development
opportunities for employees
l Deliver total reward modernisation,
focusing on employees’ pensions,
benefits, pay and recognition
l Implement year one of a three-year
wellbeing strategy
l Implement a new system to improve
applicant tracking, candidate experience
and recruitment diversity
l Develop a new three- to five-year
People and Culture strategy and
implementation plan|l A diverse, fully supported
and valued employee base with
opportunities for development
will be more likely to stay with
the RSPCA and help shape
it to be a modern, relevant
organisation that harnesses
public support to improve
animal welfare|l Applicant tracking system
in place
l Improved diversity in the
workforce
l Reduced staff absences
l Employees using support
services
l Learning management system
in place
l Employees advancing through
training and development
l Leadership and development
programme in place
l Moved DC pension scheme
to a master trust|
||**Financial**
**sustainability**|l Diversify our income streams
l Continue to invest in our strategy
and the 10 workstreams in our strategic
transformation programme
l Complete the sale of our Southwater
head office building as we transition to
more flexible ways of working|l A more diverse income
portfolio will increase our
overall revenue and reduce
the risk to our longer-term
income, ensuring we can more
confidently make decisions
about how to improve animal
welfare into the future
l Delivery of the strategy
will improve lives for animals
in the future
l Transitioning to hybrid working
without the need for large
office sites will release funds
and reduce outlay, improving
our financial sustainability
and ability to invest in our
transformation programme|l Year-on-year income growth
l Delivery of the strategic
milestones for 2022
l Completion of the sale
of our Southwater head
office building|
||**Commercial**|l Review our procurement strategy and
implement changes to deliver increased
value for the RSPCA|l More consistent approaches
will secure stabilisation of
our lead initiatives for 2022,
maximise the benefits of our
commercial arrangements and
reduce inefficient processes,
reducing costs and ensuring
more of our focus is on
animal welfare|l The new procurement
strategy is approved|
TRUSTEES’ REPORT AND ACCOUNTS **2021[37]**
|**PRIORITY**|**AREA**|**WHAT WE’LL DO IN 2022**|**ANIMAL WELFARE IMPACT**|**HOW WE WILL MEASURE**
**OUR PROGRESS**|
|---|---|---|---|---|
|**Organisational**
**effectiveness**
**(continued)**|**Technology**|l Transform our technology into
cloud-based solutions to remove our
dependency on fixed locations
l Deliver some key IT equipment for
our Inspectorate, including replacing
essential communications equipment
l Implement a planning tool to
monitor and coordinate all our change
activity, ensuring it remains aligned
with our strategy and delivers the
required benefits
l Implement a new H&S system|l Better Inspectorate
communications will keep them
on the road and able to safely
receive and update their animal
welfare tasks
l Prioritisation of strategic
outcomes ensures progress
in delivery of the strategy for
animal welfare|l Tech delivered
l Planning tool implemented
l Digital transformation started
l H&S system in place|
||**Governance**
**and**
**leadership**|l Launch an internal governance review
to improve our efficiency and the
quality of decision-making at all levels
l Prepare for externally benchmarking
our governance against the highest
standards of charity governance
and leadership|l Better decision-making will
improve our efficiency as
an organisation
l Continued good, effective
monitoring of our governance
ensures our efficiency as
an organisation|l Review launched/completed
l Project work started to
implement external governance
benchmarking|
||**Branch**
**network**|l Improve support and communication
with and among branches
l Continue transformation activity
to strengthen the network and its
relationship with the national RSPCA
with a stakeholder engagement plan
and roadmap
l Introduce revised governance with
a new partnership agreement
l Begin implementing our action plan
for branch resources|l Strengthening the
sustainability of our branch
network will allow branches
to continue to rescue, care
for and rehabilitate animals
locally, with all animals receiving
the best levels of care and
outcomes that are right
for them|l Stakeholder engagement
results
l Partnership agreement
in place|
**38**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
**----- Start of picture text -----**
Waiting for the right moment to
release four seals back into the
wild after rehabilitation at RSPCA
West Hatch Wildlife Centre.
**----- End of picture text -----**
## Financial review
The consolidated statement of financial activities (SOFA) on page 51 reports net income for the year of £44.4 million (2020: deficit £24.5 million) while the Society-only surplus for the year, as reported on page 50, was £43.6 million (2020: deficit £12.8 million).
The surplus represents a significant turnaround from the result in 2020 and preceding years, reflecting a number of different factors. It was an extraordinary year for legacy income; resolution of the delays at the Probate Registry; (sadly) a higher death rate as a result of the pandemic; the economic recovery and buoyant property market leading to higher average legacy values; and a single legacy of £9.8 million further added to the income in the year. Charity income totalled £146.8 million (2020: £111.9 million).
The restructure in late 2020 was successful in delivering a reduction in our costs, in addition to which the pandemic continued to affect our frontline activities through 2021. Veterinary treatment, vet drugs and animal boarding costs were all lower than in pre-pandemic years. Our prosecution rate was also slowed by the pandemic and so reduced related costs, and continued restrictions on travel resulted in further savings. As a result, expenditure on charitable activities in the Society reduced significantly, to £111.2 million (2020: £124.2 million). It is expected that costs will return to more ‘normal’ levels in future years.
We experienced an actuarial gain on the pension scheme of £26.1 million compared to a loss in 2020 of £4.3 million.
Funds in the charity increased by £69.8 million (2020: reduction of £17.1 million).
Financial sustainability is a key priority for the RSPCA and we have reviewed our reserves policy to give consideration to the current financial risks we face. The exceptional result in 2021 will allow us to designate funds to support the delivery of our ambitious strategy; to grow income, modernise the Society and maximise the impact for animal welfare.
## **Response to COVID-19 in 2021**
We continued to rescue, care for and protect animals throughout the ongoing pandemic in 2021 and adapt our ways of working to keep our colleagues, members of the public and the animals we support safe.
We saw an easing of the delays impacting grants of probate, which contributed to an increase in legacy income in the year, and we continued to enjoy the success of our special appeals to raise donations in support of our work. While our work in some areas was able to return to more normal levels, some activities were still impacted by the pandemic and so our expenditure on charitable activities was reduced as a result.
We have learned much from the enforced changes and will continue some of these practices even when the restrictions no longer require us to do so; for example, flexible working for our office-based staff and increased use of virtual meetings to reduce the need for travel and improve accessibility. Our virtual AGM in 2021 proved to be a great success and we plan to run a virtual AGM again in 2022.
## **Impact of the war in Ukraine**
We are monitoring the tragic events in Ukraine in 2022 carefully, in particular the impact on animal welfare, and have provided support though partner organisations working on behalf of animals in the region.
We are also tracking any financial impacts on the RSPCA. Market volatility has impacted our investments and we are working with our advisers to consider whether we need to make any changes to our investment strategy as a result. We are also feeling the effects of the inflation pressures, compounded by the war, and are undertaking a high-level forecast based on the first quarter’s results to analyse the impact. We had built in some inflation contingencies into our budget for 2022 but current expectations exceed that for which we planned. We are confident that, despite these challenges, we will continue to provide our critical services for animals in need.
TRUSTEES’ REPORT AND ACCOUNTS **2021[39]**
**S T R U C T U R E , G O V E R N A N C E A N D M A N A G E M E N T**
**40**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Structure, governance and management
## **Charity constitution**
## **The RSPCA was founded in 1824, was incorporated by an Act of Parliament (the RSPCA Act) in 1932 and is a charity registered in England and Wales (no. 219099).**
Its charitable objects are to promote kindness and to prevent or suppress cruelty to animals and to do all such lawful acts as the Society may consider to be conducive or incidental to the attainment of those objects.
## **RSPCA Board of Trustees’ statement of responsibilities**
## **The trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.**
Charity law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group and charity for that period.
In preparing these financial statements, the trustees are required to:
l select suitable accounting policies and then apply them consistently
l make judgements and accounting estimates that are reasonable and prudent
l state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements
l prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and
integrity of the charity’s website is the responsibility of the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.
## **RSPCA branches**
This report does not include the RSPCA branches, which are separately registered charities that manage their own affairs, subject to rules made by the Society. At the end of 2021 there were 145 separately registered RSPCA branches managed by their own locally elected charity trustees. Each branch is responsible for publishing its own annual trustees’ report and accounts.
The RSPCA Acts, the Society’s rules and the branch rules regulate the relationship between the Society and the branches. Each branch is established as an unincorporated charitable association, but the Board of Trustees has delegated to the Branch Affairs Committee powers to intervene in a branch’s affairs in certain circumstances, for instance where the number of local trustees falls below the required minimum. Once temporary officers have been appointed to the branch board, all further decision-making and management of the branch rests with those temporary officers until the branch can be returned to local control.
## **As set out below, at the 2019 AGM the rules on appointments to and membership of the RSPCA Board of Trustees changed.**
Among others, the Board has established a Branch Affairs Committee. Under the RSPCA rules this committee comprises three trustees with one of them acting as chair and 10 regional chairs elected from the 10 regions. The committee has delegated authority to determine, monitor and evaluate strategic direction and performance. This includes, but is not limited to, appointment of trustees to branches in national administration in certain circumstances, monitoring their affairs and overseeing their return to local trusteeship.
In light of the changes to the Society’s governance in 2019, the Board of Trustees does not believe it is correct to consolidate the accounts of branches in national administration. As the changes described were made during the course of 2019, the year was one of transition. The Board took the view that, as such, it was appropriate to consolidate the branches in national administration in the 2019 Trustees’ report and accounts. The branches are no longer consolidated from January 2020.
The 2021 _Trustees’ report and accounts_ have been prepared on the basis that the governance changes agreed in 2019 were fully implemented by the end of that year.
Much of the RSPCA’s direct animal welfare work is carried out through its branches, such as subsidised veterinary care and rehoming in their local areas. In total there are 47 branch animal establishments (domestic and wildlife), including catteries, there are also 30 clinics run by branches. The national Society works closely with the RSPCA branches in delivering animal welfare aims and strategy, and provides financial and other support to the branches.
_In 2021, 7,412 dogs were taken in by our centres._
TRUSTEES’ REPORT AND ACCOUNTS **2021[41]**
## **Grants policy**
We provide various grants to our network of branches. Our grants, resulting from our donor recruitment activities, are agreed in advance of the fundraising activity and we allocate a share of actual income to our branch network. Other grants are allocated by our Branch Affairs Committee from applications for activities such as neutering and improvements to facilities. These grants are assessed against various criteria by the committee including the financial need and the impact on animal welfare.
## **The RSPCA Board of Trustees**
The Board of Trustees has a maximum of nine members plus up to three co-opted members who, as charity trustees, have the legal responsibility for the effective use of the Society’s resources in accordance with the objects of the RSPCA and for providing effective leadership and direction. Trustees have a maximum term of nine years.
Nine members of the Board of Trustees are elected by the membership of the RSPCA on a democratic one-member-one-vote basis. All candidates for election to the Board of Trustees must have been members of the RSPCA for not fewer than two consecutive years immediately preceding nomination.
Trustees are not remunerated for their role but they are reimbursed for reasonable expenses incurred in carrying out their duties. A list of trustees who served in 2021 together with other statutory information is given on page 82 and forms part of this report.
The Society has a well-established induction programme for all trustees following election (either new or re-elected), which provides them with a comprehensive introduction to the key personnel and functions of the charity, together with information about their own duties and obligations. Trustees are also supported during their term of office in attending trustee training courses as part of their continuing development.
The Board’s Governance and Nominations Committee is overseeing the consideration of a National Council for Voluntary Organisations (NCVO) report on developing a trustee training strategy for the RSPCA. The Board is carrying out a skills audit and trustees’ appraisals are being held by the Chair as part of reviewing the Board’s performance as a whole and the contribution of individual members. The Board of Trustees meets at least six times a year, with additional meetings if required, and is responsible for the finance, governance and overall strategic aims of the RSPCA. It has delegated more detailed discussion on the work of the RSPCA to a Finance, Audit and Risk Committee (FARCOM), an Investment Committee, an Animal Welfare Committee, a Governance and Nomination Committee and the Branch Affairs Committee. The Branch Affairs Committee has been established under the RSPCA rules comprising three trustees (including the chair of the committee) and 10 regional chairs elected from our 10 regions. These committees determine, monitor and evaluate the RSPCA’s strategic direction and performance as delegated by the Board of Trustees. In addition, a Remuneration Committee has been established to review the chief executive’s remuneration each year.
## **Public benefit**
The RSPCA trustees pay due regard to Charity Commission guidance on public benefit and meet the requirements of the Charities Act 2011 through the programme of preventing cruelty and promoting kindness to animals, as this promotes humane sentiment in humans towards animals, which gives a moral benefit to the human community as a whole. We work with legislators and the public to change behaviour
and improve outcomes for animal welfare as well as providing direct support through operating our emergency helpline at our National Control Centre and responding to requests for help via our Inspectorate and animal rescue service.
## **Safeguarding**
The RSPCA continues to work with The Social Care Institute of Excellence to further refine our safeguarding policy. A revised policy was signed off in 2020 and has been published alongside a managers’ guide and a documented code of conduct.
A Google safeguarding site has been created, along with information published on the RSPCA’s intranet, to make it easy for both national and branch RSPCA employees and volunteers to access information and report safeguarding concerns. A Google form has been produced for consistent safeguarding reporting and regular reports will be provided to the Board on safeguarding. A safeguarding e-learning course has been launched and will be mandatory for all RSPCA employees. A version for volunteers was launched in 2019. Employees are required to refresh their knowledge every two years.
The RSPCA Inspectorate continues to partner with the NSPCC, sharing information about child safeguarding concerns.
## **Risk management**
The Board of Trustees is responsible for ensuring that there is an appropriate risk-management system in place. They are supported in this by the Finance, Audit and Risk Committee (FARCOM), and the Executive Leadership Team (ELT), who manage risk on a day-to-day basis.
The Board has agreed a review of the risk-management system at the RSPCA, and the risk policy and risk framework are being updated, with a step-by-step process and timeline agreed by FARCOM and the Board early in 2022.
In the interim, FARCOM has commenced a series of ‘deep-dive’ reviews into key areas of strategic and operational risk to add depth to the assurance process.
The principal risks and uncertainties facing the RSPCA in 2021 and the measures in place to mitigate them were as follows:
**42**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
|**RISK**|**MITIGATION**||**RISK**|**MITIGATION**|
|---|---|---|---|---|
|**Financial**
**sustainability**|The RSPCA has had signifcant defcits
in recent years due to the high
dependency on volatile legacy receipts
and individual giving.
l restructure and other cost-control
initiatives completed in late 2020 resulted
in signifcant savings
l the 2021 surplus has enabled the Society
to rebuild its reserves
l a new director of engagement and
income generation was appointed in
March 2021 to maximise income generation
l new three-year business-planning and
budget-setting process to give visibility to
return on investment
l improved fnancial controls and analysis
enabling more informed decisions||**Reputation and**
**geopolitical issues**|l strong communications and press teams
work with the advocacy team to manage
potential reputational risks|
||||**Animal welfare**|l zoonotic and other disease outbreaks
compliance with Royal College of
Veterinary Surgeons (RCVS) guidance
and regulations
l major incident procedure with
communication lines into Defra and other
government agencies
l complaints procedure in place
l health and safety procedures now
approved by the Board and mandatory
trainingrolled out|
||||**Pension defcit**|l defcit has reduced since the last
valuation
l increased infation and interest
rate hedging
l derisking strategies being explored with
the pension trustee|
|**Failure to meet**
**health and safety**
**requirements**
**and standards**|l the action plan developed following the
Finch Consulting Review in 2020 is now
being implemented
l a new head of health and safety was
appointed in June 2021
l health and safety training programme
rolled out||||
||||**Failure to attract,**
**inspire, empower**
**and retain talent**
**in the delivery of**
**the strategy**|l new people and culture strategy
under development
l working with Cadence to develop our
ED&I strategy
l new fexible working and family-friendly
policies approved in 2021
l learning and development programmes
in place
l employee benefts market comparison
undertaken regularly|
|**Failure to meet**
**employment**
**legislation, legal**
**and regulatory**
**requirements**
**and standards**|l professional legal, HR and compliance
functions with access to specialist external
advisers as required
l ongoing review and update of policies
and procedures
l data protection team in place with
appropriate skills, knowledge and
expertise, and mandatory training in this
area for all staf||||
||||**Failure to deliver**
**key programmes**|l the £15 million strategy implementation
programme is a key initiative focused
on both modernising the RSPCA and
increasing the impact for animal welfare
l new director of strategy and
transformation appointed in August 2021
l strategy delivery unit in place for the
governance of transformation and for
monitoring cost and beneft realisation
across the transformation programme|
|**Technology and**
**cyber resilience**|l information security group established
to maintain regular oversight of risks as
they are identifed
l dedicated information security ofcer
l annual security testing – network pen
test and website security assessment
l multi-factor authentication in place to
protect key services
l backup and recovery processes in place
for systems hosted in house
l mandatory cybersecurity training for
all staf||||
||||**Failure to engage**
**externally in**
**the delivery of**
**the strategy**|l joined-up approach across
engagement and income generation
directorate has commenced
l strategy for increasing engagement
agreed
l audience analysis work underway|
|**Fraud, collusion,**
**bribery and theft**|l anti-fraud, bribery and corruption code
of conduct, anti-money laundering and
gifts and hospitality policies in place||||
||||**Failure to manage**
**disruption due to**
**pandemic or other**
**major incidents**|l business continuity recovery group
and business continuity steering group
established as a result of COVID-19
l process in place to address IT failure
and facilitate remote working
l successful trial of hybrid working|
|**Dependency on**
**third-party suppliers**
**and supply chain**|l the call-handling contract with Capita
was renegotiated in 2021 and includes
updated key performance indicators
l a new head of procurement was
appointed in late 2021 and will review the
procurement strategy and related policies||||
TRUSTEES’ REPORT AND ACCOUNTS **2021[43]**
## **Slavery and human trafficking**
The RSPCA has a statement on its website setting out the steps we are taking to combat slavery and human trafficking in our supply chain. See: rspca.org.uk/utilities/modernslavery
## **Fundraising governance**
The RSPCA is committed to responsible fundraising complying with the regulatory standards for fundraising, and to ensuring that our fundraising is delivered in a manner consistent with our values. We are registered with the Fundraising Regulator and are committed to the Fundraising Promise and adherence to the Code of Fundraising Practice. Any third-party agencies we use for the purpose of our fundraising are contractually obliged to adhere to the relevant codes of practice.
When the COVID-19 pandemic hit our shores in 2020 all face-to-face fundraising activity ceased. We have observed the revised guidelines for face-to-face fundraising activity as set out in the fundraising code of practice; however, as yet the Society has not made any plans to restart this activity. Should activity resume in the future, there will be a requirement to review all training material. This will reflect changes to existing rules, to protect our supporters and our professional fundraisers. Potentially, we will appoint a new third-party provider to conduct face-to-face activity.
We complete an annual complaints return for the fundraising regulator of fundraising complaints reported. Our latest return shows that the RSPCA received 64 fundraising complaints. The complaint numbers for the previous reporting period was 403.
The reduction in number of complaints this year is due to the lack of face-to-face fundraising activity. This activity created 322 of the 403 fundraising complaints reported in the last reporting period. The reporting period is 31 March–1 April.
In 2021, out of a total of 77 incidents reported to the data protection team we recorded 36 actual breaches which were independently investigated on a case-by-case basis from the time we became aware of the breach. Our standard is to complete investigations within three to five days of receiving the breach notification; however, it might extend beyond that depending on the complexity of the incident.
Out of 36 breaches, 35 cases were recorded as low risk according to the data protection team’s scoring tool. One of the breaches was reported and investigated by the Information Commissioner’s Office (ICO) – the investigation was closed with no regulatory actions from ICO. Follow-up advice and resolution was provided for all.
In comparison to 2020, there was a very slight increase in total breach incidents recorded (76 cases reported in 2020, versus 77 cases reported in 2021) as well as in actual breaches (34 in 2020, versus 36 in 2021).
The RSPCA does not share any of its supporter data with other charities or companies unless we have a data-sharing agreement allowing us to do so. In October 2020, we revised the legal basis on how we gain supporters’ consent across the Society. Our legal basis is ‘legitimate interest’ for new supporters who have provided the RSPCA with an address or telephone number. We regularly review supporter journeys to ensure we protect potentially vulnerable supporters and to address process improvements following supporter feedback.
## **Performance**
Fundraising costs for 2021 were £22.2 million (2020: £19.2 million). Income from fundraising, excluding legacies, increased by £0.4 million in 2021 to £43.4 million (2020: £43.0 million). This reflects new regulatory constraints and increasing costs of compliance.
## **Financial position of trading subsidiaries**
The RSPCA has two wholly owned subsidiaries that operated during the year. The results of these entities are presented in note 18. RSPCA Trading Limited undertakes non-primary purpose trading and the profit from its activity is transferred to the RSPCA at year end. In 2021, RSPCA Trading had income of £1.2 million (2020: £1.3 million). Outgoing resources were £0.9 million (2020: £1.1 million) and £0.3 million of profit was Gift-Aided to the RSPCA (2020: £0.2 million).
Freedom Food Limited, which trades as RSPCA Assured, promotes RSPCA-approved welfare standards in livestock farming. RSPCA Assured activities generated income of £4.5 million (2020: £3.6 million) and incurred costs of £3.8 million (2020: £3.4 million).
## **Investments**
The RSPCA holds investments to support fluctuations in its cash flow and to fund structural growth. The value of the RSPCA’s investments at 31 December 2021 was £115.2 million (2020: £77.7 million). Net gains of £8.0 million are reported in the group statement of financial activity (SOFA) for 2021 (2020: losses of £0.5 million). The Board has delegated overall responsibility for the RSPCA’s investment strategy to the investment committee, which continues to refine this. The investment committee consults with its investment professionals to help maximise the overall return within acceptable risk parameters, while ensuring that the strategy remains fit for purpose.
## **Investment strategy review**
Financial performance in 2021 was very strong and therefore it was possible to invest an additional £27.5 million in the portfolio during the last quarter of the year.
## **Market overview**
Markets started the year well, supported by the rapid roll-out of COVID-19 vaccines and continued support from governments and central banks around the world. Towards the end of 2021 the emergence of the Omicron variant caused some investor uncertainty with fears that it could derail the global economic recovery, though most markets were able to look through the potential impacts as investors focused on economic resilience and corporate earnings. There was however a divergence in market performance, with emerging markets, notably China, struggling to keep pace with western markets given increased regulatory scrutiny in certain sectors as well as renewed COVID-19 outbreaks, leading to new lockdowns in some major Chinese cities.
At the start of 2022 Russia’s invasion of Ukraine caused a global shock. In addition to the tragic human implications, there were also impacts on markets, with equities declining and bond yields rising (meaning prices fell). Commodity prices soared given Russia is a key producer of several important commodities including oil, gas, and wheat. This amplified existing concerns over inflation pressures, which could force central banks to raise interest rates quicker than initially anticipated.
Rising inflation and weak consumer sentiment have the potential to feed through to lower consumer demand, which has resulted in a weaker outlook for global growth in 2022 than previously forecast. We believe inflation is likely to remain elevated in the near term and could prove to be more persistent as a result of supply disruption in commodity markets caused by the Russia-Ukraine conflict. Recent developments have therefore raised the risk of stagflation – a period of high inflation and low or negative growth, which will make it a more challenging period for investing.
**44**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## **Fund performance**
The portfolio achieved a return of +11.2% in the 12 months to 31 December 2021, compared to the return target (CPI+4.0%) of 9.6%. Over the past five years the portfolio has returned 5.9% pa. The ARC Balanced Index remains the peer group comparator for this portfolio. This index represents the average performance of a large sample of other charity portfolios with a similar risk remit. The ARC Balanced Index return has been 7.6% over the previous 12 months. Over a five-year annualised basis, the figure is 4.9%.
## **Ethical and socially responsible investment**
The RSPCA has an agreed ethical investment policy. This states that the RSPCA will take all reasonable steps to ensure that its corporate investments are consistent with its animal welfare policies. We also have a requirement for investment managers/funds to be signatories to the UN’s six principles for socially responsible investment.
We are currently undertaking a review of our existing policies and look to enhance them where possible.
_Above: One of 13 cats we rescued from a house in Kent after their owner was admitted to hospital. RSPCA Leybourne Animal Centre and RSPCA Canterbury and District Branch found the cats loving new homes._
_Left: Gulls were released from a beach in East Sussex, after rehabilitation at RSPCA Mallydams Wood Wildlife Centre. One of the gulls had been rescued from a car’s grille._
## **Pension arrangements**
The Society operates a pension arrangement which is held separately under the RSPCA Pension Scheme (the Scheme) and has defined benefit and defined contribution sections. The Scheme has a trustee board which includes an independent trustee. Based on financial reporting standard (FRS102), the amount by which the liabilities exceed the assets of the defined benefit section of the pension scheme decreased by £27.6 million in 2021 to £11.1 million (2020: £38.7 million). The improvement in scheme funding is mostly due to returns on the Scheme’s assets being significantly higher than had been expected over the period.
In December 2021, following a 60-day consultation with all employees, the Society introduced a new defined contribution (DC) pension provision through a master arrangement with Legal & General. A strategic review of current pension arrangements concluded that the benefits of transitioning the DC section of the pension scheme towards a master trust were the best outcome for all key stakeholders:
l **Members –** optimise member experience and reduced investment costs for members
- l **RSPCA –** significant cost savings identified which supports financial sustainability
- l **Pension Trustee –** can focus on the closed DB section of the pension scheme moving forward.
TRUSTEES’ REPORT AND ACCOUNTS **2021[45]**
## **Reserves**
The RSPCA holds three types of reserve – restricted reserves, designated funds and free reserves. The group reserves additionally include restricted and unrestricted reserves held in the subsidiary companies.
Restricted reserves is the balance on endowment funds and restricted funds; these are held pending their application to the activity specified by the donor. As at 31 December 2021, the balance of restricted reserves was £20.4 million (2020: £16.3 million).
Designated funds are set aside for fixed assets and investment in strategic projects. The funds represent the RSPCA’s intangible and tangible fixed assets, approved capital expenditure, and allocations to strategic investments; income generation and the organisational transformation programme (see note 17). As at 31 December 2021, the balance of designated funds was £142.4 million (2020: £90.3m).
Free reserves are calculated as total funds, less restricted reserves and designated funds. This definition takes full account of the pension liability.
The Board reviewed the reserves policy during the year and reserves will be held for the following reasons:
l to meet working capital requirements
l to protect the RSPCA against income fluctuations
l to fund strategic initiatives over the three-year planning period
l as an ‘adversity’ or continuity reserve – to protect the RSPCA’s operations against unplanned adverse events.
Consideration has been given to the level of reserves required to meet the risk in each of these categories and the following levels have been agreed:
l a working capital reserve of between £15 million and £25 million
l holding a reserve to protect against falls in legacy income of £10 million
l holding a continuity reserve of £60 million
l a total free reserve of between £85 million and £95 million.
It was agreed that the funds previously designated for field and branch operations would be re-designated to support the organisational transformation programme, along with a further designation to bring this fund to the total expected investment in transformation over the next three years, of £15 million. £20 million of funds will also be designated for the investment in growing our income over the next three years. Given the geo-political uncertainty and resultant volatility in investment values, trustees felt it prudent to designate a further £30 million as a contingency against market fluctuations affecting investment valuations and the pension scheme liability.
The Board will review this policy annually.
At 31 December 2021, our free reserves stood at £95.3 million (2020: £81.7 million).
**46**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Summary financial report
## **Our income 2021 £151.8m**
|Legacy income|£90.9m|
|---|---|
|Contributions and donations|£43.2m|
|Charitable activities|£7.6m|
|Other income|£4.7m|
|Furlough income and fees|£0.7m|
|FA disposals|£2.7m|
|Investment income|£2.0m|
## **Our expenditure 2021 £115.5m**
|Field animal welfare|£76.1m|
|---|---|
|Cost of raising funds|£22.2m|
|Support to branches|£7.0m|
|Campaigns, communication,||
|publications|£3.5m|
|Prosecutions – legal|£2.6m|
|Education|£2.0m|
|Science|£1.4m|
|International|£0.7m|
Signed on behalf of the RSPCA Board
**René Olivieri** _Chairperson, RSPCA Board of Trustees_ 27 May 2022
**Karen Harley** _Treasurer, RSPCA_
TRUSTEES’ REPORT AND ACCOUNTS **2021[47]**
## Independent auditor’s report to the trustees of the RSPCA
## **Opinion on the financial statements**
- In our opinion, the financial statements:
- l give a true and fair view of the state of the Group’s and of the Parent Charity’s affairs as at 31 December 2021 and of the Group’s incoming resources and application of resources for the year then ended;
- l have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- l have been prepared in accordance with the requirements of the Charities Act 2011 and RSPCA Rules.
We have audited the financial statements of The Royal Society for the Prevention Of Cruelty To Animals (“the Parent Charity”) and its subsidiaries (“the Group”) for the year ended 31 December 2021 which comprise the consolidated and charity statement of financial activities, the consolidated and parent charity balance sheets, the consolidated cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
## **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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Independence**
We remain independent of the Group and the Parent Charity in accordance with the ethical requirements 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.
## **Conclusions related to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the Parent Charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report and accounts, other than the financial statements and our auditor’s report thereon. The other information comprises: the Chair and Chief Executive forewords and the annual report of the trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 Act 2011 requires us to report to you if, in our opinion;
- l the information contained in the financial statements is inconsistent in any material respect with the trustees’ annual report; or
- l adequate accounting records have not been kept by the Parent Charity; or
- l the Parent Charity financial statements are not in agreement with the accounting records and returns; or
- l we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Board of trustees statement of responsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the Group’s and the Parent Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Group or the parent Charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor section 144 of the Charities Act 2011 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
**48**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
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.
## **Extent to which the audit was capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
As part of the audit we gained an understanding of the legal and regulatory framework applicable to the Group and the sector in which it operates, and considered the risk of acts by the Group that were contrary to applicable laws and regulations, including fraud. We considered the Group’s own assessment of the risks that irregularities may occur either as a result of fraud or error, the Group’s compliance with laws and regulations that have a direct impact on the financial statements such as the Charities Act 2011, RSPCA Rules and other laws and regulations applicable to the group such as employment law, taxation legislation, data protection, health and safety legislation and the Animal Welfare Act 2006. We considered financial performance, key performance indicators and other performance targets. We also considered the risks of non-compliance with requirements imposed by the Charity Commission, and other regulators, and we considered the extent to which noncompliance might have a material effect on the group financial statements.
We also communicated relevant identified laws and regulations, potential fraud risks and that there were no known matters of significant non-compliance with laws and regulations, to all engagement team members including internal specialists audit teams, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
As a result of these procedures we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: donations, legacy recognition and changes to supplier or employee bank account data. Our tests included:
- l agreeing the financial statement disclosures complied with applicable legislation
- l enquiries of the Finance and Audit Committee, management and Senior Management Team, review of minutes of meetings of those charged with governance
- l reviewing correspondence with HMRC
- l audit testing a sample of Gift Aid claims and ensuring these have been made in accordance with the regulations
- l audit of the donor system to accounting records reconciliation
- l challenging assumptions made by management in their significant accounting estimates in particular in relation to the legacy accrual and defined benefit pension scheme liability
- l enquiries of third parties, where information from that third party has been used by the Group in the preparation of the financial statements
- l reviewed Serious Incident Reports submitted to the Charity Commission, other correspondence with the Charity Commission and performed an assessment of any Whistleblowing matters and
- l performed audit procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
As in all of our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluations, whether there was evidence of bias in accounting estimates by management or the Board that represented a risk of material misstatement due to fraud.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: www.frc.org.uk/auditorsresponsibilities This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the Charity’s trustees, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **BDO LLP, statutory auditor, London, UK 27 May 2022**
BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
TRUSTEES’ REPORT AND ACCOUNTS **2021[49]**
## Charity statement of financial activities
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
Unrestricted Restricted Endowment TOTAL Unrestricted Restricted Endowment TOTAL
funds funds funds 2021 funds funds funds 2020
Notes £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income and endowments from:
Donations and legacies 2a 130,381 3,884 0 134,265 92,902 4,306 0 97,208
Charitable activities 2b 3,109 0 0 3,109 3,637 42 0 3,679
Other trading activities 2c 3,661 0 0 3,661 3,916 0 0 3,916
Investments 2d 1,793 80 112 1,985 1,691 80 9 1,780
Gains on disposal of tangible
2e 2,698 0 0 2,698 1,918 0 0 1,918
fixed assets
Other 2f 1,096 0 0 1,096 3,429 0 0 3,429
Total income 142,738 3,964 112 146,814 107,493 4,428 9 111,930
Expenditure on: 3
Charitable activities 88,365 1,248 0 89,613 103,948 2,335 0 106,283
Raising funds 21,582 0 16 21,598 17,893 9 26 17,928
Total expenditure 109,947 1,248 16 111,211 121,841 2,344 26 124,211
Net gains/(losses) on investments 6,712 0 1,330 8,042 (541) (14) 50 (505)
Net income/(expenditure) 39,503 2,716 1,426 43,645 (14,889) 2,070 33 (12,786)
Transfers between funds 15 0 0 0 0 3,385 (1,754) (1,631) 0
Other recognised gains:
Actuarial gain/(loss) on defined 23 26,140 0 0 26,140 (4,283) 0 0 (4,283)
benefit pension scheme
Net movement in funds 65,643 2,716 1,426 69,785 (15,787) 316 (1,598) (17,069)
Reconciliation of funds:
Fund balances brought forward
172,058 7,840 8,435 188,333 187,845 7,524 10,033 205,402
at 1 January:
Fund balances carried forward
237,701 10,556 9,861 258,118 172,058 7,840 8,435 188,333
at 31 December:
**----- End of picture text -----**
All amounts relate to continuing operations. All gains and losses recognised in the current and preceding financial year are included in the statement of financial activities.
The notes on pages 55 to 80 form part of these accounts.
**50**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Consolidated statement of financial activities
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
Unrestricted Restricted Endowment TOTAL Unrestricted Restricted Endowment TOTAL
funds funds funds 2021 funds funds funds 2020
Notes £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income and endowments from:
Donations and legacies 2a 130,125 3,884 0 134,009 92,701 4,306 0 97,007
Charitable activities 2b 7,633 0 0 7,633 7,272 42 0 7,314
Other trading activities 2c 4,712 0 0 4,712 5,077 0 0 5,077
Investments 2d 1,793 80 112 1,985 1,691 80 9 1,780
Gains on disposal of tangible
2e 2,698 0 0 2,698 1,918 0 0 1,918
fixed assets
Other 2f 728 0 0 728 3,429 0 0 3,429
Total income 147,689 3,964 112 151,765 112,088 4,428 9 116,525
Expenditure on: 3
Charitable activities 91,965 1,248 0 93,213 107,053 14,299 0 121,352
Raising funds 22,219 0 16 22,235 19,156 9 26 19,191
Total expenditure 114,184 1,248 16 115,448 126,209 14,308 26 140,543
Net gains/(losses) on investments 6,712 0 1,330 8,042 (541) (14) 50 (505)
Net income/(expenditure) 40,217 2,716 1,426 44,359 (14,662) (9,894) 33 (24,523)
Transfers between funds 15 0 0 0 0 3,392 (1,761) (1,631) 0
Other recognised gains:
Actuarial gain/(loss) on defined 23 26,140 0 0 26,140 (4,283) 0 0 (4,283)
benefit pension scheme
Net movement in funds 66,357 2,716 1,426 70,499 (15,553) (11,655) (1,598) (28,806)
Reconciliation of funds:
Fund balances brought forward
173,684 7,840 8,435 189,959 189,237 19,495 10,033 218,765
at 1 January:
Fund balances carried forward
240,041 10,556 9,861 260,458 173,684 7,840 8,435 189,959
at 31 December:
**----- End of picture text -----**
All amounts relate to continuing operations. All gains and losses recognised in the current and preceding financial year are included in the consolidated statement of financial activities.
The notes on pages 55 to 80 form part of these accounts.
TRUSTEES’ REPORT AND ACCOUNTS **2021[51]**
## Consolidated and charity balance sheets
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
GROUP GROUP CHARITY CHARITY
2021 2020 2021 2020
Notes £’000 £’000 £’000 £’000
Fixed assets
Intangible assets 4 8,691 9,791 8,691 9,791
Tangible assets 5 61,312 65,590 61,296 65,590
Investments 6 115,165 77,741 115,165 77,741
Programme related investments 6c 34 1,389 34 1,389
Total fixed assets 185,202 154,511 185,186 154,511
Current assets
Stocks 7 545 386 0 0
Debtors 8 79,967 64,965 79,994 64,723
Cash at bank and in hand 23,396 25,465 21,005 23,352
Total current assets 103,908 90,816 100,999 88,075
Creditors
Amounts falling due within one year 9 (16,902) (15,857) (16,417) (14,742)
Net current assets 87,006 74,959 84,582 73,333
Total assets less current liabilities 272,208 229,470 269,768 227,844
Creditors
Amounts falling due after more than one year
Provisions for liabilities and charges 10 (646) (792) (546) (792)
Defined benefit pension liability 23 (11,104) (38,719) (11,104) (38,719)
Total net assets 260,458 189,959 258,118 188,333
The funds of the Charity:
Endowment funds 15 9,861 8,435 9,861 8,435
Restricted income funds 15 10,556 7,840 10,556 7,840
Unrestricted income funds:
Pension reserve 15 (11,104) (38,719) (11,104) (38,719)
Other charitable funds 108,775 122,069 106,435 120,443
Designated funds 15 142,370 90,334 142,370 90,334
Total funds 260,458 189,959 258,118 188,333
**----- End of picture text -----**
The notes on pages 55 to 80 form part of these accounts. These accounts were approved by the Board of Trustees and signed on its behalf by:
**René Olivieri Karen Harley** _Chairperson, RSPCA Board of Trustees Treasurer, RSPCA_ 27 May 2022
**52**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Consolidated cash flow statement
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
2021 2020
Notes £’000 £’000
Cash flows from operating activities:
Net cash provided by operating activities A 21,528 (6,224)
Cash flows from investing activities:
Dividends, interest and rents from investments 1,967 1,718
Interest received 18 62
Proceeds from the sale of property, equipment and motor vehicles 4,692 2,230
Purchase of intangibles (55) (1,604)
Purchase of property, plant and equipment (2,192) 130
Proceeds from sale of investments 13,316 25,862
Purchases of investments (42,698) (17,147)
Disposal/(Addition) of programme related investments 1,355 (340)
Net cash provided by investing activities (23,597) 10,911
Change in cash and cash equivalents in the reporting period (2,069) 4,687
Cash and cash equivalents at the beginning of the reporting period 25,465 20,778
Cash and cash equivalents at the end of the reporting period B 23,396 25,465
Notes to the consolidated cash flow statement
A) Reconciliation of net income to net cash flow from operating activities
Net expenditure for the reporting period 44,359 (24,523)
Depreciation charges 5,631 5,440
(Gains)/losses on investments (8,042) 505
Dividends, interest and rents from investments (1,985) (1,780)
Profit on disposal of fixed assets (2,698) (1,918)
Non cash branch disposals 0 8,152
(Increase)/decrease in stocks (159) (891)
(Increase)/decrease in debtors (15,002) 10,349
Increase/(decrease) in creditors 1,045 57
(Decrease)/increase in provisions (146) 461
Other adjustments including pension funding (1,475) (2,076)
Net cash provided by operating activities 21,528 (6,224)
B) Analysis of cash and cash equivalents
Cash in hand 23,396 25,465
Loans and overdraft 0 0
Total cash and cash equivalents 23,396 25,465
**----- End of picture text -----**
TRUSTEES’ REPORT AND ACCOUNTS **2021[53]**
## Consolidated cash flow statement (continued)
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
At 31
At 1 January
2021 Cash flows December
2021
£’000 £’000 £’000
Analysis of change in net debt
Cash and cash equivalents:
Cash in hand 25,465 (2,069) 23,396
Total 25,465 (2,069) 23,396
**----- End of picture text -----**
Net cash flow change in the year is (£2,069k). The notes on pages 55 to 80 form part of these accounts.
**54**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
YEAR ENDED 31 DECEMBER 2021
## Notes to the accounts
## **1. Accounting policies**
The particular accounting policies adopted are described below.
## **a) Basis of accounting**
The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments to market value. The accounts (financial statements) have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued October 2019 and the Charities Act 2011, UK Generally Accepted Practice and the RSPCA Rules. The charity is a public benefit entity.
## **b) Going concern**
The trustees assess the reasonableness of the assumption of the Charity to continue as a going concern for a period of 12 months from the date the financial statements are signed.
A combination of exceptional legacy receipts, cost savings achieved through the restructure in late 2020 and other cost-saving initiatives, and a reduction in costs due to the pandemic continuing to restrict activity in some areas, resulted in a significant surplus for 2021. This has allowed trustees to designate funds to support the investment in growing engagement and income generation, and transforming the Society to ensure it is able to deliver the impact set out in our strategy in a sustainable way.
Trustees have approved a budget for 2022 that targets a small operating surplus, reflecting the one-off nature of some of the events contributing to the high surplus achieved in 2021, and have reviewed the forecast of cash flows for the period to June 2023. The budget takes into consideration any ongoing impact of the COVID-19 pandemic and includes some contingency against inflation. The planned sale of property during 2022 will enable the Society to transfer further funds into its investment portfolio.
Trustees revised the Reserves Policy, taking into consideration the key financial risks the Society faces, and reserves at the year end 2021 are at the upper end of the range considered appropriate. So a combination of a healthy level of reserves, designations to support key strategic investments, a cautious budget and sufficient cash to meet the Society’s needs means that the trustees consider it appropriate for the accounts to be prepared on a going concern basis.
## **c) Key judgements and estimates**
In the application of the Charity’s accounting policies, trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The significant estimates are:
**Income recognition –** The Charity recognises income on a receivable basis where the amount is reliably measurable and there is adequate probability of receipt. Income recognition policies are detailed in the accounting policy for income. When it is considered that the key criteria of entitlement, probability and measurement for income recognition are not fulfilled for a transaction, income recognition is delayed until these have been judged to have been met.
**Fixed assets –** The charge in respect of periodic depreciation and amortisation is derived after determining an estimate of an asset’s expected useful life. The useful economic life of an asset is determined at the time the asset is acquired or brought into use and reviewed annually for appropriateness. The lives are based on historical experience together with anticipation of future events. Depreciation policy is detailed in the accounting policy for depreciation.
**Accruals, provisions and contingencies –** Expenditure incurred in the reporting period where it has not yet been paid at the year end date is accrued for. Where there exists a present obligation for a probable outflow of economic resources at the year end date, and payment can be reliably measured, a provision is made based on the estimated payment. For example, where settlement fees of known legal cases can be reliably estimated at the end of the reporting period, a provision is made.
Matters that are either possible obligations or do not meet the recognition criteria for a provision are disclosed as contingent liabilities. If the possibility of transferring economic benefit is considered to be remote no reference is made.
**Defined Benefit Pension Scheme –** The Society operates a pension arrangement called the RSPCA Pension Scheme (the Scheme) which has defined benefit and defined contribution sections. Although closed for further accrual, the position of the defined benefit element of the Scheme at 31 December each year is calculated by actuarial valuation. By nature, the actuarial valuation includes estimates and assumptions which include: discount rate,
TRUSTEES’ REPORT AND ACCOUNTS **2021[55]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
inflation rates (CPI and RPI), post-retirement mortality rates, commutation, retirement ages and withdrawal rates.
**Legacies –** Legacies are recognised following a grant of probate.
All pecuniary legacy cases have an estimated value based on the amount expected to be received as identified by the Will. All residuary legacy cases have an estimated value which is calculated based on the information available, including the value of the estate and the contents of the Will. Early stage estimates will include a deduction for administration costs, estimated at 5%. Valuations on cases which are contentious include a further deduction of 20% to take into account the risk. Estimates are regularly updated based on information available at the time.
## **d) Consolidation**
The financial statements consolidate the results of the RSPCA and its wholly owned subsidiaries (see note 18). The consolidation is prepared on a line-by-line basis. A separate Statement of Financial Activities for the Charity is also presented in accordance with Charities SORP (FRS 102).
The Group accounts do not consolidate the results of the 150 branches of the RSPCA which are independent charities, registered separately with their own independent charity trustees and charitable objects and are therefore not controlled by the Society.
Where a branch ceases to be under active management, the Branch Affairs Committee may appoint temporary trustees to ensure that the affairs of the branch continue to be administered. The Society’s Board of Trustees does not have the right to appoint (or remove) trustees nor to determine the day-to-day and longer-term affairs of the down branches. This means that they do not have any control of these branches at this time in accordance with Charities SORP (FRS 102), and the branches are not consolidated.
## **e) Income**
Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and the amount can be measured reliably. Bank interest and dividend income from listed investments is accrued. Other investment income is recognised when the Society’s entitlement is measurable.
Legacies are deemed receivable from the date of probate, provided that sufficient information has been received to enable the Society to reliably measure the amount receivable. Receipt of a legacy, in whole or part, is only
considered probable when the amount can be measured reliably. The amount included within income is the probate value for pecuniary legacies although a provision for fees of 5% is made against residual legacies. Additional provisions are made for contested legacies.
Life interest legacies are not valued until conditions are met which bring these within the control of the Society to be valued as receivable. Pecuniary legacies are valued at the amount notified to the Society. The Society has been informed of the existence of a number of properties in which it holds a reversionary interest. However, it is not practicable to quantify the value of such assets.
Donated goods for sale are included when those goods are sold, as it is impractical to value them on receipt. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised and more information about their contribution is included in the _Trustees’ report and accounts_ . Donated professional services and donated facilities are recognised at the estimate of the value to the charity and recognised on receipt.
Legacy income received, where the will stipulates that it is for the use of a branch, is treated as income of the branch regardless of whether or not the charity number quoted in the will is that of the branch. The Society does not ordinarily receive government grants but did claim furlough support under the CJRS during the year. This income has been classified as other income and recognised when conditions for entitlement were met. Where cases are notified but not reliably measured they are treated as a contingent asset, see note 20.
## **f) Expenditure on charitable activities**
The analysis of expenditure by charitable activities to further animal welfare in this report identifies the direct operational costs and the support and governance costs described above.
## **g) Expenditure on raising funds**
Fundraising costs include the salaries and overheads of the staff who directly undertake fundraising activities, plus allocated support and governance costs.
## **h) Governance and support costs**
Governance costs include the direct costs of administering the Society. Support costs represent the central services of the Society, including the cost of maintaining facilities shared by all or most aspects of the Society. In 2020 and 2021, this includes furlough support which has been shown within other income in the trading statement. Governance and support costs, net of incidental income, have been allocated across the Society’s activities according to the
**56**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
use made of those services. Individual support cost centres assessed their workloads, which were then used as a basis to allocate costs to user activities using numbers of staff or other more appropriate bases.
Further detail of support costs is shown in note 3. Costs of premises occupied solely for the use of one activity are charged to that activity.
## **i) Grants payable**
Grants to other organisations for animal welfare purposes and for scientific research into animal welfare matters are accounted for on the basis of approved allocations. The value of grants approved and communicated, but still to be paid as at the balance sheet date, are included in the balance sheet as current liabilities.
## **j) Prosecutions**
Prosecution costs are based on costs incurred during the period. We incur some of these costs when cases go to trial. These are shown as costs recovered within income from charitable activities and refer to cash received during the period.
## **k) Operating leases**
Rental costs under operating leases are included in total expenditure in annual instalments over the period of the leases.
## **l) Financial assets and liabilities**
The Charity holds both financial assets and financial liabilities which are accounted for in accordance with Section 11 of the Charities SORP (FRS 102).
Basic financial assets held by the Charity include cash in hand and debtors. Cash is held at the cash amount of the deposit. Debtors are recognised at the amount receivable, and are carried at amortised cost.
Other financial assets held by the Charity include investments in equity shares, property trusts, unit trusts and alternatives.
Investments are re-valued at the end of the reporting period to their fair value. The arising unrealised gain or loss is charged to the SOFA.
Basic financial liabilities held by the Charity include trade and other creditors. Trade and other creditors are recognised at the amount payable, and are carried at amortised cost.
## **m) Properties**
Freehold and leasehold properties are shown at cost. Equity Housing Properties are owned by the Society, which grants a lease at a peppercorn rent to any inspector wishing to take advantage of the scheme. The inspector purchases an
investment in the equity of the property and any future change in the value is shared between the Society and the inspector in proportion to their shares in the property.
The inspector’s share in an existing Society property, or an additional investment in an equity property, is treated by the Society as sale proceeds for that proportion of the property sold. Depreciation is charged on the cost of the Society’s equity share of the property using a 40-year useful life. The inspector is entitled to purchase the remaining equity owned by the Society in the property at market value at date of sale.
The Society undertakes an annual Impairment Review, and where significant impairment is incurred, unrealised losses are recognised in the SOFA representing the write-down of the net book value (depreciated historical cost) of the property to the revalued estimate.
## **n) Computers and other equipment**
The Society capitalises any computers, computer software, equipment and motor vehicles, if they have a cost price above £5,000 and fulfil the recognition criteria as per FRS102. Assets hired as part of an operating lease arrangement are not capitalised.
## **o) Depreciation**
Provision for depreciation is made on cost in respect of:
(i) leasehold interests in land over the terms of the leases in equal annual instalments except those in excess of 40 years, which are not depreciated;
(ii) completed freehold and leasehold buildings at the rate of 2.5% per annum;
(iii) computers, other equipment and motor vehicles on a straight line basis over their estimated useful lives, when new, of between three and 10 years. This equates to a rate of between 10% and 33% per annum.
## **p) Intangible assets**
Intangible assets are shown at cost. Any expenditure fulfilling the recognition criteria of an intangible asset as per FRS102 and the SORP with a cost price of above £5,000 is capitalised as such. Costs in respect of the research phase of a project are expensed as they arise. Costs in respect of the development phase of a project are capitalised when there are adequate technical and financial resources to complete and it is probable that future economic benefits will arise. Development projects are amortised, on a straight line basis, when available for use, over their useful economic life of between three and 10 years. They are included as Intangible Fixed Assets.
TRUSTEES’ REPORT AND ACCOUNTS **2021[57]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
## **q) Investments**
Stocks and shares are measured at bid value at the balance sheet date. Included in investments is portfolio cash held within the investment portfolios which fluctuates with purchases and disposals of investment holdings.
Donated and legacy investment properties consist of land where development approval is being sought or the property is being held in anticipation of increased value and are held at their estimated fair value at the balance sheet date. Unrealised gains and losses arising on the revaluation of investments are, together with the realised gains and losses arising on the sales of investments, shown in the consolidated statement of financial activities as net gains/ (losses) on investments.
## **r) Programme related investments**
Where appropriate, the Society will provide funds to downed branches to give liquidity. These are shown as investments and then valued each year at the net realisable value. Provisions are made against programme related investments if a default against repayment is deemed probable.
## **s) Stocks**
Stocks are stated at the lower of cost and the net realisable value. Provision is made for slow moving or obsolete items.
## **t) Fund accounting**
Endowment, restricted and unrestricted funds are disclosed separately in the financial statements. Endowment and restricted funds are subject to specific restrictions imposed by the donor or by the nature of the appeal or grant. Funds formally held as restricted are transferred to unrestricted funds (General Fund) as the original restrictions are met in accordance with the Charities SORP (FRS 102). Where the donor restrictions are for revenue purposes for activities normally carried out within the General Fund, transfers are made from the restricted fund to the General Fund to offset the costs as they are incurred. Further details are given in notes 15 and 16.
Designated funds are part of the General Fund set aside for a specific purpose by the Board. Details of designated funds are set out in note 17.
## **u) Pension costs**
For the defined benefit section and defined contribution section of the pension scheme, the amounts charged to expenditure in the statement of financial activities are the current service costs and gains and losses on settlements
and curtailments. Service costs are shown separately as part of staff costs, settlements and curtailments. Past service costs are recognised immediately in the statement of financial activities if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. The interest cost and the expected return on assets are shown net of other finance costs or credits adjacent to interest.
Actuarial gains and losses are recognised immediately in other recognised gains and losses. The defined benefit pension section is funded, with the assets of the scheme held separately from those of the Group, in a separate trustee administered fund. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent currency and term to the scheme liabilities. The actuarial valuation is obtained at least triennially and is updated at each balance sheet date. The resulting pension scheme asset or liability is presented separately after other net assets on the face of the balance sheet. Key assumptions that have been used to estimate the pension scheme liability include a discount rate of 2.0%; RPI inflation of 3.20% and CPI inflation of 2.90%.
## **v) Taxation**
As a charity, the Society benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions. Recovery is made of tax deducted from income and from receipts under Gift Aid, and partial recovery is also made of tax credits on UK dividend income. The Society is also able to partially recover Value Added Tax (VAT). Expenditure subject to VAT that is not recoverable by the Society is recorded in the accounts inclusive of the VAT.
The Society is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly, the Society is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
The subsidiary trading companies make qualifying donations of taxable profit to the Society to the full extent allowable. Unless material, any corporation tax liability arising in the subsidiaries is included within the resources expended by the Group.
**58**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
Unrestricted Restricted Endowment TOTAL TOTAL
funds funds funds 2021 2020
£’000 £’000 £’000 £’000 £’000
2. Income and endowments
a) Donations and legacies
CHARITY
Legacy income 87,574 3,276 0 90,850 54,253
Contributions and donations 42,807 608 0 43,415 42,955
Total charity donations and legacies 130,381 3,884 0 134,265 97,208
GROUP
Legacy income 87,574 3,276 0 90,850 54,253
Contributions and donations 42,807 608 0 43,415 42,955
Total donations and legacies 130,381 3,884 0 134,265 97,208
Less Gift Aid (256) 0 0 (256) (201)
Total group donations and legacies 130,125 3,884 0 134,009 97,007
**----- End of picture text -----**
The income from the donations and legacies in 2020 was £97,007k of which £92,701k was unrestricted and £4,306k was restricted.
**----- Start of picture text -----**
b) Income from charitable activities
CHARITY
Sale of goods 930 0 0 930 928
Rehoming, veterinary and boarding income 1,090 0 0 1,090 1,476
Costs recovered 1,045 0 0 1,045 999
Other fees and charges received 44 0 0 44 276
Total charity income from charitable activities 3,109 0 0 3,109 3,679
GROUP
Sale of goods 930 0 0 930 928
Rehoming, veterinary and boarding income 1,090 0 0 1,090 1,476
Costs recovered 1,045 0 0 1,045 999
Other fees and charges received 44 0 0 44 276
Total income from charitable activities 3,109 0 0 3,109 3,679
Freedom Food’s welfare assessment and licence fees 4,524 0 0 4,524 3,635
Total group income from charitable activities 7,633 0 0 7,633 7,314
**----- End of picture text -----**
The income from charitable activities in 2020 was £7,314k of which £7,272k was unrestricted and £42k was restricted. Costs recovered include £665k awarded to the RSPCA in successful prosecutions (2020: £596k).
TRUSTEES’ REPORT AND ACCOUNTS **2021[59]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
Unrestricted Restricted Endowment TOTAL TOTAL
funds funds funds 2021 2020
£’000 £’000 £’000 £’000 £’000
2. Income and endowments (continued)
c) Other trading activities
CHARITY
Charity income (from social lotteries) 3,661 0 0 3,661 3,916
GROUP
Income (from social lotteries) 3,661 0 0 3,661 3,916
Sale of goods 645 0 0 645 726
Income from royalties and sponsorship 406 0 0 406 435
Total Group income from other trading activities 4,712 0 0 4,712 5,077
**----- End of picture text -----**
The income from other trading activities in 2020 was £5,077k of which £5,077k was unrestricted and nil was restricted.
**----- Start of picture text -----**
d) Investment income
CHARITY AND GROUP
Income from listed investments 1,775 80 112 1,967 1,718
Bank and other interest 18 0 0 18 62
Total investment income 1,793 80 112 1,985 1,780
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The income from investments in 2020 was £1,780k of which £1,691k was unrestricted, £80k was restricted and £9k was in respect of endowment funds.
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e) Gains on disposal of tangible fixed assets
CHARITY AND GROUP
Disposal of fixed assets 2,698 0 0 2,698 1,918
Total RSPCA gains on disposal of tangible fixed assets 2,698 0 0 2,698 1,918
The gains on disposal of tangible fixed assets in 2020 was £1,918k, of which £1,918k was unrestricted and nil was restricted.
f) Other income
CHARITY
Other fees and charges 688 0 0 688 287
Furlough income 408 0 0 408 3,142
Total Charity other income 1,096 0 0 1,096 3,429
GROUP
Other fees and charges 320 0 0 320 287
Furlough income 408 0 0 408 3,142
Total Group other income 728 0 0 728 3,429
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Total other income in 2020 was £3,429k of which £3,429k was unrestricted and nil was restricted.
**60**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
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Unrestricted funds
Restricted Endowment TOTAL TOTAL
Support funds funds 2021 2020
Direct Total
costs
£’000 £’000 £’000 £’000 £’000 £’000 £’000
3. Expenditure
a) Charitable activities
CHARITY
Field animal welfare:
hospitals and animal centres 23,226 8,348 31,574 859 0 32,433 36,776
Inspectorate 31,694 6,118 37,812 9 0 37,821 46,691
prosecutions – animal care 1,862 260 2,122 0 0 2,122 2,886
Support to branches 6,494 507 7,001 0 0 7,001 7,038
Prosecutions – legal 2,431 181 2,612 0 0 2,612 2,730
Campaigns, communications, publications 2,761 768 3,529 0 0 3,529 4,837
Science 1,021 353 1,374 69 0 1,443 1,853
Education 1,358 495 1,853 132 0 1,985 2,291
International 456 32 488 179 0 667 877
Charity total costs of charitable activities 71,303 17,062 88,365 1,248 0 89,613 105,979
GROUP
Field animal welfare:
hospitals and animal centres 23,226 8,348 31,574 859 0 32,433 36,776
Inspectorate 31,694 6,118 37,812 9 0 37,821 46,691
prosecutions – animal care 1,862 260 2,122 0 0 2,122 2,886
Support to branches 6,494 507 7,001 0 0 7,001 7,038
Prosecutions – legal 2,431 181 2,612 0 0 2,612 2,730
Campaigns, communications, publications 2,761 768 3,529 0 0 3,529 4,837
Science 1,021 353 1,374 69 0 1,443 1,853
Education 1,358 495 1,853 132 0 1,985 2,291
International 456 32 488 179 0 667 877
Charity total costs of charitable activities 71,303 17,062 88,365 1,248 0 89,613 105,979
Deconsolidation of branches/branch
0 0 0 0 0 0 11,964
charitable activities
Freedom Food charitable expenditure 3,600 0 3,600 0 0 3,600 3,409
Group total costs of charitable activities 74,903 17,062 91,965 1,248 0 93,213 121,352
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Expenditure on charitable activities in 2020 was £121,352k of which £107,053k was unrestricted and £14,299k was restricted.
TRUSTEES’ REPORT AND ACCOUNTS **2021[61]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
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TOTAL TOTAL
2021 2020
£’000 £’000
3. Expenditure (continued)
a) Charitable activities (continued)
CHARITY AND GROUP
Support to branches
Branch support officers 1,409 1,431
Shared fundraising income grant* 3,993 4,175
Grants** 149 12,020
Cost of sales 672 861
Other support 778 515
Total support to branches 7,001 19,002
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*The shared fundraising income is a fixed-rate payment to all branches based on the income collected by the Society in the previous year from the door-to-door campaign.
**Grants includes nil (2020: £11,969k) arising in the deconsolidation of branches.
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Unrestricted funds
Restricted Endowment TOTAL TOTAL
Support funds funds 2021 2020
Direct Total
costs
£’000 £’000 £’000 £’000 £’000 £’000 £’000
b) Raising funds
CHARITY
Total RSPCA fundraising activities 20,131 1,451 21,582 0 16 21,598 18,077
GROUP
Total RSPCA fundraising activities 20,026 1,451 21,477 0 16 21,493 18,077
RSPCA Trading Limited expenditure 742 0 742 0 0 742 1,114
Total costs of raising funds 20,768 1,451 22,219 0 16 22,235 19,191
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Expenditure on raising funds in 2020 was £19,191k of which £19,156k was unrestricted and £9k was restricted and £26k was in respect of endowment funds.
**62**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
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TOTAL TOTAL
2021 2020
£’000 £’000
3. Expenditure (continued)
c) Support, governance and administration costs
CHARITY AND GROUP
Governance 918 780
Finance and supporter services 4,307 3,780
Headquarters services 1,030 1,332
Central information technology and communications 5,984 5,775
Legal 488 528
Human resources and training 4,847 6,236
Property, printing, purchases and transport 939 615
Total support, governance and administration costs 18,513 19,046
Allocation of support and governance costs
Total cost 18,513 19,046
Charitable activities (17,062) (17,819)
Raising funds (1,451) (1,227)
0 0
d) Grants payable
CHARITY AND GROUP
Expenditure on charitable activities includes the following grants payable:
Support to branches* 4,142 16,195
Science, international, other 625 1,226
Total grants payable included in charitable activities 4,767 17,421
RECIPIENTS OF INSTITUTIONAL GRANTS:
RSPCA branches – door-to-door grants 3,993 4,175
RSPCA branches – neutering grants 149 51
RSPCA branches – other grants 0 11,969
Other 625 1,226
4,767 17,421
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*£11,969k of the £16,195k balance in 2020 related to the deconsolidation of branches.
TRUSTEES’ REPORT AND ACCOUNTS **2021[63]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
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TOTAL TOTAL
2021 2020
£’000 £’000
3. Expenditure (continued)
e) Additional analysis of expenditure:
CHARITY
Included in total expenditure are fees payable in respect of:
Auditor’s remuneration – statutory audit 106 143
Auditor’s remuneration – other services 15 30
Depreciation of fixed assets 4,476 4,469
Hire of equipment under operating leases 130 225
Premises rent 112 614
Trustee indemnity insurance 29 21
Other insurance excluding motors 333 303
GROUP
Included in total expenditure are fees payable in respect of:
Auditor’s remuneration – statutory audit 135 143
Auditor’s remuneration – other services 18 30
Depreciation of fixed assets 4,476 4,469
Hire of equipment under operating leases 186 225
Premises rent 112 614
Trustee indemnity insurance 29 21
Other insurance excluding motors 346 303
f) Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
GROUP
Employee costs included in the consolidated statement of financial activities:
Wages and salaries 42,772 52,073
Social security costs 4,417 5,118
Employer’s contribution to pension schemes 4,600 5,230
Total employment costs 51,789 62,421
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**64**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
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TOTAL TOTAL
2021 2020
£’000 £’000
3. Expenditure (continued)
f) Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
(continued)
The emoluments of higher-paid staff within the following scales were:
£60,000–£69,999 17 12
£70,000–£79,999 10 15
£80,000–£89,999 6 5
£90,000–£99,999 2 4
£100,000–£109,999 0 2
£110,000–£119,999 1 0
£120,000–£129,999 0 2
£130,000–£139,999 1 0
£150,000–£159,999 1 1
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Emoluments include salary, benefits in kind and exit costs, but exclude pension scheme contributions. 38 employees earning more than £60,000 in 2021 participated in the pension scheme (2020: 41).
Employer contributions of £302k were paid into the pension scheme on behalf of these employees in 2021 (2020: £289k).
In 2021, the Charity made termination payments of £186k (2020: £2,414k). The termination payments are a combination of compulsory and voluntary redundancy payments plus termination payments made under settlement agreements. The accounting policy is to recognise termination payment liabilities on communication of intention to pay and when quantifiable. Such payments are accounted for as staff costs. The payments were funded from unrestricted reserves.
No remuneration was paid to any trustee in their role as trustee. Costs and reasonable expenses incurred by trustees on behalf of the Society – such as travel, subsistence, telephone, postage and incidentals – are reimbursed. In 2021 eight trustees were reimbursed for expenses and/or had expenses paid by the Charity (2020: 12). In 2021, trustees were reimbursed £2k (2020: £7k) for out-of-pocket expenses and the Society paid £2k (2020: £0k) on their behalf for expenditure incurred while performing their duties as trustees.
Mr Kevin Degenhard, a trustee, was formerly employed by the Society, latterly as Chief Inspectorate Officer. He retired in 2015 after 41 years of service and was appointed a trustee in October 2019. He is currently receiving a pension from the Society pension scheme in accordance with his entitlement under the scheme rules. He lives in a shared equity property as a participant in the Society’s shared equity housing scheme.
The key management personnel of the Parent Charity, the Society, comprised the Chief Executive, the Chief Operating Officer, the Director of People and Culture, the Director of Advocacy and Policy, the Director of Engagement and Income Generation, the Director of Strategy and Transformation, the Director of Finance and Business Services, the Chief Veterinary Officer, the Chief Legal Officer, and the Chief Inspectorate Officer.
The total employee benefits, including pension scheme contributions and employer’s National Insurance, of the key management personnel of the Society were £1,306k (2020: £1,462k).
The key management personnel of the group comprised those of the Society and the key management personnel of its wholly owned subsidiaries, RSPCA Trading Ltd and Freedom Food Ltd. The key management of RSPCA Trading Ltd is the same as that of its parent company. The key management personnel of Freedom Food Ltd is comprised of the Chief Executive Officer whose total employee benefits total £116k (2020: £104k). The total employee benefits of key management personnel of the Group was therefore £1,411k (2020: £1,566k).
TRUSTEES’ REPORT AND ACCOUNTS **2021[65]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
Full-time Total Full-time Total
equivalents employees equivalents employees
2021 2021 2020 2020
3. Expenditure (continued)
g) Staff numbers
The analysis of the average number of employees by activity was
as follows:
Hospitals and animal centres 515 621 582 699
Inspectorate 393 429 488 535
Prosecutions 11 12 15 16
Support to branches 33 34 30 31
Campaigns, communication, publications 47 51 60 65
Science 22 25 29 31
Education 31 41 36 45
International 2 2 3 3
Support and governance 164 176 159 169
Fundraising 87 91 86 88
Total average employee numbers 1,305 1,482 1,488 1,682
2021 2020
£’000 £’000
4. Intangible fixed assets
GROUP AND CHARITY
Cost
At 1 January 11,310 9,706
Additions 55 1,604
Disposals 0 0
At 31 December 11,365 11,310
Accumulated depreciation
At 1 January 1,519 548
Released on disposals 0 0
Charge for the year 1,155 971
At 31 December 2,674 1,519
Net book value at 31 December 8,691 9,791
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Intangible assets relate to investments in systems in relation to call handling and a database of supporters. Amortisation is charged in the SOFA against the underlying activity to which the intangible asset relates.
**66**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
Leasehold property Freehold property
Motor
Equity Equity Animal centres Equipment vehicles TOTAL
Other
housing housing and other
£’000 £’000 £’000 £’000 £’000 £’000 £’000
5. Tangible fixed assets
a) GROUP
Cost
At 1 January 2021 43 11,599 5,135 84,379 19,575 10,239 130,970
Additions 0 0 314 280 425 1,173 2,192
Disposals 0 (5) (447) (1,628) (1,510) (777) (4,367)
At 31 December 2021 43 11,594 5,002 83,031 18,490 10,635 128,795
Accumulated depreciation
At 1 January 2021 22 2,656 1,644 35,609 18,282 7,167 65,380
Released on disposals (4) 0 (271) (771) (559) (768) (2,373)
Charge for the year 0 344 276 1,439 0 2,417 4,476
At 31 December 2021 18 3,000 1,649 36,277 17,723 8,816 67,483
Net book value at 31 December 2021 25 8,594 3,353 46,754 767 1,819 61,312
Net book value at 31 December 2020 21 8,943 3,491 48,770 1,293 3,072 65,590
b) CHARITY
Cost
At 1 January 2021 43 11,599 5,135 84,379 19,575 10,239 130,970
Additions 0 0 314 280 295 1,173 2,062
Disposals 0 (5) (447) (1,628) (1,510) (777) (4,367)
At 31 December 2021 43 11,594 5,002 83,031 18,360 10,635 128,665
Accumulated depreciation
At 1 January 2021 22 2,656 1,644 35,609 18,282 7,167 65,380
Released on disposals (4) 0 (271) (771) (673) (768) (2,487)
Charge for the year 0 344 276 1,439 0 2,417 4,476
At 31 December 2021 18 3,000 1,649 36,277 17,609 8,816 67,369
Net book value at 31 December 2021 25 8,594 3,353 46,754 751 1,819 61,296
Net book value at 31 December 2020 21 8,943 3,491 48,770 1,293 3,072 65,590
**----- End of picture text -----**
Included in freehold property other are properties in the course of construction costing £1,295k (2020: £1,015k).
The total value of inspectors’ contributions to equity housing as at 31 December 2021 was £3,854k (2020: £4,684k). Should an inspector leave the scheme, the Society has an obligation to refund the inspector’s share in the value of the related property at the time. It is intended that any Society obligation will be funded by the proceeds from the sale of the property.
TRUSTEES’ REPORT AND ACCOUNTS **2021[67]**
## Notes to the accounts (continued)
## YEAR ENDED 31 DECEMBER 2021
Included in freehold and leasehold property, ‘other’ and ‘freehold equity housing’ are houses currently occupied by pensioners of the Society. The relevant net book value at the balance sheet date comprises:
**----- Start of picture text -----**
Leasehold property Freehold property
Equity Equity
Other Other
housing housing
£’000 £’000 £’000 £’000
5. Tangible fixed assets (continued)
Net book value
At 31 December 2021 0 85 405 2,074
At 31 December 2020 0 88 408 2,171
GROUP GROUP CHARITY CHARITY
2021 2020 2021 2020
£’000 £’000 £’000 £’000
6. Investments
a) Analysis of movements in the year
Market value at 1 January 77,741 88,605 77,741 87,643
Acquisitions at cost 42,698 17,147 42,698 17,147
Disposal proceeds (13,316) (26,066) (13,316) (25,104)
Realised and unrealised gains / (losses) in the year 8,042 (1,945) 8,042 (1,945)
Fair value at 31 December 115,165 77,741 115,165 77,741
Historical cost at 31 December 85,326 58,715 85,326 58,715
b) Analysis of investments held at 31 December
Listed investments:
Properties trust – UK 7,993 7,799 7,993 7,799
Equity shares – UK 30,642 27,731 30,642 27,731
Government and corporation stocks 0 1,115 0 1,115
Unit trusts – fixed interest 19,229 12,053 19,229 12,053
Unit trusts – UK equity 5,396 8,674 5,396 8,674
Unit trusts – overseas equity 39,885 16,349 39,885 16,349
Unit trusts – multi asset 4,590 0 4,590 0
Alternatives 46 0 46 0
Total listed securities 107,781 73,721 107,781 73,721
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**68**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
GROUP GROUP CHARITY CHARITY
2021 2020 2021 2020
£’000 £’000 £’000 £’000
6. Investments (continued)
b) Analysis of investments held at 31 December (continued)
Unlisted securities:
Cash 7,384 4,020 7,384 4,020
Total investments at fair value 115,165 77,741 115,165 77,741
c) Programme related investments
Loans to branches less provisions 34 1,389 34 1,389
**----- End of picture text -----**
The total gain on investments was £8,342k (2020: loss £505k) of which £7,012k (2020: loss £541k) was unrestricted, £0k (2020: loss £14k) was restricted and a gain of £1,330k was in respect of endowment funds (2020: gain £50k).
Programme related investments relate to loans made by the Society to RSPCA branches. Repayments of £1,355k were received within the year, leaving one loan remaining as receivable at 31 December 2021 with a balance of £34k.
**----- Start of picture text -----**
The following investments comprised over 5% of the portfolio as at 31 December, and are considered significant: £’000
Schroder QEP Global Core Fund, Units -I- Income, Schroder Unit Trusts Limited, 0766108 12,820
Schroder Institutional Sterling, Broad Market Bond Fund, Units -I- Income Gross, Schroder Unit Trusts Limited, B06RTZ2 8,170
Schroder Global Sustainable Growth, Shs -I QV- Distribution, Schroder Int. Selection Fund SICAV, BKLF434 22,098
GROUP GROUP CHARITY CHARITY
2021 2020 2021 2020
£’000 £’000 £’000 £’000
7. Stocks
Stocks held for resale 545 386 0 0
8. Debtors
Income tax and VAT recoverable 1,117 1,254 1,223 1,254
Prepayments 1,868 1,068 1,845 1,068
Accrued income 74,665 60,636 73,694 59,856
Group debtors 0 0 1,374 1,150
Other debtors 2,317 2,007 1,858 1,395
Total debtors 79,967 64,965 79,994 64,723
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TRUSTEES’ REPORT AND ACCOUNTS **2021[69]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
GROUP GROUP CHARITY CHARITY
2021 2020 2021 2020
£’000 £’000 £’000 £’000
9. Creditors
Amounts falling due within one year
Trade creditors 6,991 5,126 6,737 4,876
Branches 3,993 4,329 3,993 4,329
Accruals and deferred income* 5,918 6,172 5,687 5,294
Other creditors 0 230 0 243
Total creditors 16,902 15,857 16,417 14,742
**----- End of picture text -----**
*Deferred income for the Group relates wholly to Freedom Food Limited and RSPCA Trading Limited. It includes membership income received by Freedom Food Limited within the reporting period relating to future accounting periods, and entry fees received by RTL within the reporting period for future accounting periods. The Group deferred income balance for 2021 is £101k (2020: £4k).
**----- Start of picture text -----**
AT 1 AT 31
CHARGED UTILISED/
JANUARY DECEMBER
TO SOFA RELEASED
2021 2021
£’000 £’000 £’000 £’000
10. Provisions for liabilities and charges
GROUP
Taxation provision 242 471 (500) 213
Other provision 550 100 (217) 433
Total provisions 792 571 (717) 646
CHARITY
Taxation provision 242 471 (500) 213
Other provision 550 0 (217) 333
Total provisions 792 471 (717) 546
**----- End of picture text -----**
The taxation provision includes an estimate for the tax on 2021 employee benefits payable to HMRC at the end of the 2021/22 tax year. The timing of the outflows can be estimated reliably in line with regulatory requirements. Other provisions include a provision for property dilapidations, and a provision for settlement costs of known legal cases with uncertain settlement dates. All provisions are estimated by taking into account known current events at the end of the reporting period, and historic events.
**----- Start of picture text -----**
2021 2020
£’000 £’000
11. Commitments
At 31 December 2021, the group had the following capital and other budgeted project commitments.
Contracted
Authorised but not contracted 7,367 5,635
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All commitments relate to the Parent Charity. All commitments will be funded by the capital and project commitments designated fund (Note 17).
**70**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
## **12. Contingent liabilities and assets**
The Society has given an indemnity to repay £5m related to a legacy bequest should the estate be claimed against. The Society is the legal tenant for 12 properties where the beneficial tenant is an RSPCA branch. In the event of the financial failure of the beneficial tenant, the Society would be obliged to continue the tenancy.
## **13. Financial instruments**
The Group and parent financial instruments comprise fixed asset investments measured at fair value through profit or loss and other financial assets which comprise cash, group debtors, and other debtors and financial liabilities which comprise trade creditors, branches and other creditors, measured at amortised cost.
## **14. Trusteeships**
The Society holds property title deeds and investments as custodian trustee for certain branches. The deeds are held by the legal department in safe custody and the branches’ objects are aligned with the Society’s.
**----- Start of picture text -----**
AT 1 TRANSFER OTHER AT 31
JANUARY INCOME EXPENDITURE BETWEEN RECOGNISED DECEMBER
2021 FUNDS* GAINS/(LOSSES) 2021
£’000 £’000 £’000 £’000 £’000 £’000
15. Analysis of movement of funds
YEAR ENDED 31 DECEMBER 2021
a) GROUP
Endowment funds
Bowmer fund 490 10 0 0 88 588
The A&D Simpson fund 2,240 44 (2) 0 383 2,665
Wyndham Cottle Charity – capital fund 2,711 58 (3) 0 571 3,337
MT & VL Wythe Charitable Trust 1,036 0 (9) 0 171 1,198
Albekier fund 1,958 0 (2) 0 117 2,073
Total endowment funds 8,435 112 (16) 0 1,330 9,861
Restricted funds
Animal centres – operational 1,605 430 (538) 48 0 1,545
Birmingham fund 100 27 0 0 0 127
Overseas funds 0 1,044 (179) 0 0 865
Regional funds 1,474 583 (373) 0 0 1,684
Tubney Grant fund 3,473 0 (69) 0 0 3,404
Other restricted funds 1,188 1,880 (89) (48) 0 2,931
Total restricted funds 7,840 3,964 (1,248) 0 0 10,556
Unrestricted funds
Pension reserve (38,719) (529) 0 2,004 26,140 (11,104)
General fund 122,069 78,939 (104,866) 5,621 7,012 108,775
Designated funds 90,334 68,979 (9,318) (7,625) 0 142,370
Total unrestricted funds 173,684 147,389 (114,184) 0 33,152 240,041
Total group funds 189,959 151,465 (115,448) 0 34,482 260,458
**----- End of picture text -----**
* The transfer between funds reflects the movement of Fair Value reserve – Investments to General Fund, fixed asset movements and £2m payment to Pension Fund from General.
TRUSTEES’ REPORT AND ACCOUNTS **2021[71]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
OTHER
AT 1 TRANSFER AT 31
RECOGNISED
JANUARY INCOME EXPENDITURE BETWEEN DECEMBER
GAINS/
2021 FUNDS* 2021
(LOSSES)
£’000 £’000 £’000 £’000 £’000 £’000
15. Analysis of movement of funds (continued)
YEAR ENDED 31 DECEMBER 2021
b) CHARITY
Endowment funds
Bowmer fund 490 10 0 0 88 588
The A&D Simpson fund 2,240 44 (2) 0 383 2,665
Wyndham Cottle Charity – capital fund 2,711 58 (3) 0 571 3,337
MT & VL Wythe Charitable Trust 1,036 0 (9) 0 171 1,198
Albekier fund 1,958 0 (2) 0 117 2,073
Total endowment funds 8,435 112 (16) 0 1,330 9,861
Restricted funds
Animal centres – capital funds 0 0 0 0 0 0
Animal centres – operational 1,605 430 (538) 48 0 1,545
Birmingham fund 100 27 0 0 0 127
Overseas funds 0 1,044 (179) 0 0 865
Regional funds 1,474 583 (373) 0 0 1,684
Tubney Grant fund 3,473 0 (69) 0 0 3,404
Other restricted funds 1,188 1,880 (89) (48) 0 2,931
Total restricted funds 7,840 3,964 (1,248) 0 0 10,556
Unrestricted funds
Pension reserve (38,719) (529) 0 2,004 26,140 (11,104)
General fund 120,443 73,988 (100,629) 5,621 7,012 106,435
Designated funds 90,334 68,979 (9,318) (7,625) 0 142,370
Total unrestricted funds 172,058 142,438 (109,947) 0 33,152 237,701
Total Charity funds 188,333 146,514 (111,211) 0 34,482 258,118
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* The transfer between funds reflects the movement of Fair Value reserve – Investments to General Fund, fixed asset movements and £2m payment to Pension Fund from General.
**72**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
OTHER
AT 1 TRANSFER AT 31
RECOGNISED
JANUARY INCOME EXPENDITURE BETWEEN DECEMBER
GAINS/
2020 FUNDS* 2020
(LOSSES)
£’000 £’000 £’000 £’000 £’000 £’000
15. Analysis of movement of funds (continued)
YEAR ENDED 31 DECEMBER 2020
a) GROUP
Endowment funds
Bowmer fund 493 0 0 0 (3) 490
The A&D Simpson fund 2,240 0 (2) 0 2 2,240
Wyndham Cottle Charity – capital fund 2,710 0 (2) 0 3 2,711
MT & VL Wythe Charitable Trust 1,046 9 (18) 0 (1) 1,036
Albekier fund 1,904 0 (2) 0 56 1,958
Other endowment funds** 1,640 0 (2) (1,631) (7) 0
Total endowment funds 10,033 9 (26) (1,631) 50 8,435
Restricted funds
Animal centres – capital funds 42 55 (50) (47) 0 0
Animal centres – operational 1,216 587 (573) 375 0 1,605
Birmingham fund 68 32 0 0 0 100
Overseas funds 0 442 (305) (105) (32) 0
Regional funds 1,794 759 (1,079) 0 0 1,474
Tubney Grant fund 3,545 4 (76) 0 0 3,473
Other restricted funds 866 2,549 (261) (1,984) 18 1,188
Branches under Board trusteeship 11,964 0 (11,964) 0 0 0
Total restricted funds 19,495 4,428 (14,308) (1,761) (14) 7,840
Unrestricted funds
Pension reserve (36,512) 2,076 0 0 (4,283) (38,719)
General Fund 128,250 110,012 (113,718) (1,934) (541) 122,069
Designated funds 97,499 0 (12,491) 5,326 0 90,334
Total unrestricted funds 189,237 112,088 (126,209) 3,392 (4,824) 173,684
Total group funds 218,765 116,525 (140,543) 0 (4,788) 189,959
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* The transfer between funds reflects the movement of Fair Value reserve – Investments to General Fund, fixed asset movements and £2m payment to Pension Fund from General.
TRUSTEES’ REPORT AND ACCOUNTS **2021[73]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
OTHER
AT 1 TRANSFER AT 31
RECOGNISED
JANUARY INCOME EXPENDITURE BETWEEN DECEMBER
2020 FUNDS* GAINS/ 2020
(LOSSES)
£’000 £’000 £’000 £’000 £’000 £’000
15. Analysis of movement of funds (continued)
YEAR ENDED 31 DECEMBER 2020
b) CHARITY
Endowment funds
Bowmer fund 493 0 0 0 (3) 490
The A&D Simpson fund 2,240 0 (2) 0 2 2,240
Wyndham Cottle Charity – capital fund 2,710 0 (2) 0 3 2,711
MT & VL Wythe Charitable Trust 1,046 9 (18) 0 (1) 1,036
Albekier fund 1,904 0 (2) 0 56 1,958
Other endowment funds** 1,640 0 (2) (1,631) (7) 0
Total endowment funds 10,033 9 (26) (1,631) 50 8,435
Restricted funds
Animal centres – capital funds 42 55 (50) (47) 0 0
Animal centres – operational 1,216 587 (573) 375 0 1,605
Birmingham fund 68 32 0 0 0 100
Overseas funds 0 442 (305) (105) (32) 0
Regional funds 1,794 759 (1,079) 0 0 1,474
Tubney Grant fund 3,545 4 (76) 0 0 3,473
Other restricted funds 866 2,549 (261) (1,977) 18 1,195
Total restricted funds 7,531 4,428 (2,344) (1,754) (14) 7,847
Unrestricted funds
Pension reserve (36,512) 2,076 0 0 (4,283) (38,719)
General Fund 126,851 105,417 (109,350) (1,941) (541) 120,436
Designated funds 97,499 0 (12,491) 5,326 0 90,334
Total unrestricted funds 187,838 107,493 (121,841) 3,385 (4,824) 172,051
Total charity funds 205,402 111,930 (124,211) 0 (4,788) 188,333
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* The transfer between funds reflects an exercise completed during the year to derestrict historic arrangements where possible.
** Following legal advice, on 18 November 2020 the Board of Trustees passed a resolution to transfer two endowment funds to general reserves and to a restricted income (overseas) fund. This has resulted in £1.6m transferring from endowment funds.
**74**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
TOTAL NET PENSION TOTAL
FIXED INVESTMENTS CURRENT PROVISIONS SCHEME NET
ASSETS ASSETS LIABILITY ASSETS
£’000 £’000 £’000 £’000 £’000 £’000
16. Analysis of group net assets
As at 31 December 2021
Endowment funds 0 9,861 0 0 0 9,861
Restricted funds 0 0 10,556 0 0 10,556
Unrestricted funds 70,003 105,338 76,450 (646) (11,104) 240,041
Total group funds 70,003 115,199 87,006 (646) (11,104) 260,458
YEAR ENDED 31 DECEMBER 2020
As at 31 December 2020
Endowment funds 0 8,560 (125) 0 0 8,435
Restricted funds 414 1,909 5,517 0 0 7,840
Unrestricted funds 74,967 68,661 69,567 (792) (38,719) 173,684
Total group funds 75,381 79,130 74,959 (792) (38,719) 189,959
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Unrestricted funds include other charitable funds, designated funds and the pension reserve.
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AT 1 AT 31
ADDITIONS UTILISED/ DEPRECIATION
JANUARY DECEMBER
IN YEAR REALISED AND DISPOSALS
2021 2021
£’000 £’000 £’000 £’000 £’000
17. Designated fund movements
Intangible fixed assets fund 9,791 55 0 (1,155) 8,691
Tangible fixed assets fund 64,908 2,192 682 (6,470) 61,312
Capital and project commitments 5,635 1,732 0 0 7,367
Other designations 10,000 65,000 (10,000) 0 65,000
Total designations 90,334 68,979 (9,318) (7,625) 142,370
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The intangible and tangible fixed asset funds represent the net book value of the fixed assets of the Society. Capital and project commitments relate to a number of commitments authorised at 31 December 2021 (Note 11). ‘Other designations’ is to support the transformation programme (£15m), investment in income generation activities (£20m) and a contingency for market fluctuations that impact the investment valuations and liability for the pension fund (£30m).
TRUSTEES’ REPORT AND ACCOUNTS **2021[75]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
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RSPCA TRADING FREEDOM FOOD RSPCA BRANCHES
LIMITED LIMITED IN BOARD TRUSTEESHIP
2021 2020 2021 2020 2021 2020
£’000 £’000 £’000 £’000 £’000 £’000
18. Subsidiary company undertakings
Income and endowments from:
Donations and legacies 0 0 0 0 0 0
Charitable activities 0 0 4,524 3,635 0 0
Other trading activities 1,157 1,316 0 0 0 0
Total income 1,157 1,316 4,524 3,635 0 0
Expenditure on:
Charitable activities 0 0 3,810 3,409 0 11,964
Raising funds 900 1,114 0 0 0 0
Total expenditure 900 1,114 3,810 3,409 0 11,964
Net gains/(losses) on investments 0 0 0 0 0 0
Net income/(expenditure) 257 202 714 226 0 (11,964)
Taxation 0 0 0 0 0 0
Gift Aid payable (256) (201) 0 0 0 0
Surplus/(deficit) 1 1 714 226 0 (11,964)
Total assets 1,245 1,179 3,162 2,705 0 0
Total liabilities (1,241) (1,176) (825) (1,082) 0 0
Total funds at 31 December 4 3 2,337 1,623 0 0
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## **a) RSPCA Trading Limited (Company No: 1072608)**
Since 1991 this company has been used for direct sales, royalties and special events. The issued share capital is owned by the RSPCA and, where company law allows, all potentially taxable profits, after recovery of available losses, are transferred to the RSPCA by a qualifying distribution by way of a Deed of Covenant.
## **b) Freedom Food Limited (Company No: 02723670, Charity Nos: 1059879, SC038199)**
Freedom Food Limited, a wholly owned subsidiary of the RSPCA, is being used by the Society for the encouragement of the adoption of RSPCA-approved standards in animal welfare of livestock farming operations.
## **c) RSPCA Enterprises Limited (Company No: 04044564)**
Dormant for the entire year.
## **19. Branch legacies**
During 2021, the Society received £9.6m (2020: £10.0m) in legacies payable to branches. These are not shown in the statement of financial activities. The sums received are paid to branches as soon as the recipient branch has been identified. As at 31 December 2021 the Society held £1.3m of legacy income that was paid to the branches in January 2022.
## **20. Legacies notified**
As at 31 December 2021, the Society had been notified of 15 (2020: 7) high-value legacies (over £500k) with an estimated value of £12m (2020: £4.6m). Interim payments of £2.5m have been received, the balance is included in the legacy income accrual if a grant of probate has been received in 2021, in line with the Income Policy in note 1.
There are 313 cases notified in 2021 (excluding life interest and life interest residuary) which it has not been possible to value.
**76**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
## **21. Related party transactions**
RSPCA branches are separately registered charities. The Society has an arm’s length trading relationship with most branches. Loans and grants are made to branches when charitable objectives delivered by the branch would be enhanced (see note 6c). Branches are represented on the regional boards whose Chairs are represented on the Branch Affairs Committee which reports to the RSPCA Board of Trustees.
During 2021 the Society provided the services of farm livestock officers to Freedom Food Limited which reimbursed the Society for the cost of £350k (2020: £309k).
There were no branches in Board trusteeship during 2021 or 2020, all being disposed of on 1 January 2020.
RSPCA Trading Limited accrued a qualifying distribution to be paid to the Society of £256k (2020: £201k) and made sales to the Society of £106k (2020: £155k).
At the year end the Society was owed £1,170k (2020: £1,100k) by RSPCA Trading Limited and £204k by Freedom Food Limited. At the 2020 year end, the Society owed Freedom Food Limited £32k.
As at 31 December 2021 the Society held £3.9m of fundraising income to be paid to the branches in April 2022, and £1.3m of legacy income that were paid to the branches in January 2022.
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GROUP GROUP CHARITY CHARITY
2021 2020 2021 2020
£’000 £’000 £’000 £’000
VEHICLES AND EQUIPMENT
22. Operating lease commitments
The Group and Charity had total commitments at the year end under
operating leases expiring as follows:
Less than one year 121 179 65 130
One to five years 43 111 0 65
Over five years 0 0 0 0
164 290 65 195
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## **23. Pensions**
The Society operates a pension arrangement called the RSPCA Pension Scheme (the Scheme) which has defined benefit and defined contribution sections. The defined benefit section of the Scheme provides benefits based on salary and length of service on retirement, leaving service or death. The following disclosures exclude any allowance for the defined contribution section.
The Scheme is subject to the Statutory Funding Objective under the Pensions Act 2004. A valuation of the Scheme is carried out at least once every three years to determine whether the Statutory Funding Objective is met. As part of the process the Society must agree with the trustees of the Scheme the contributions to be paid to meet any shortfall against the Statutory Funding Objective.
The most recent comprehensive actuarial valuation of the Scheme was carried out as at 31 March 2021, and the next is due as at 31 March 2024. In the event that the valuation reveals a larger deficit than expected the Society may be required to increase contributions above those set out in the existing Schedule of Contributions. Conversely if the position is better than expected, it’s possible that the contributions may be reduced.
The Society expects to pay contributions of around £2,000,000 in the year to 31 December 2022 (plus expenses which are met directly). The contributions will be reviewed as part of the 2021 actuarial valuation.
The Scheme has a trustee board which features an independent trustee. The trustees have responsibility for obtaining valuations of the fund, payments and investing the Scheme’s assets. The trustees delegate some of these functions to their professional advisers where appropriate.
TRUSTEES’ REPORT AND ACCOUNTS **2021[77]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
2021 2020
£’000 £’000
23. Pensions (continued)
Principal actuarial assumptions
Discount rate 2.00% 1.40%
Inflation (RPI) 3.20% 2.75%
Inflation (CPI) 2.90% 2.35%
Revaluation of deferred pensions:
Post 09 pension 2.50% 2.35%
Pre 09 pension in excess of GMP 2.90% 2.35%
GMP Fixed Fixed
Increases for pensions in payment:
GMP accrued before 5 April 1988 Nil Nil
GMP accrued after 5 April 1988 2.35% 2.00%
XS Pension accrued before 31 March 2008 2.80% 2.30%
Pension accrued after 31 March 2008 2.10% 1.85%
104% of the S2PA tables for
males and 96% of the S2PA
S3PA tables with
tables for females with
CMI 2020 projections using
Post-retirement mortality CMI 2019 projections (with
a long-term improvement
initial addition of 0%) using
rate of 1.25% p.a.
a long-term improvement
rate of 1.25% p.a.
Members are assumed Members are assumed to
Commutation (using current commutation factors) to take 25% of their take 25% of their
pension as tax-free cash pension as tax free cash
50% of in-service deferred 50% of in-service deferred
members retire at age 60, members retire at age 60,
Retirement and 10% retire at each age and 10% retire at each age
between 61 and 65; deferred between 61 and 65; deferred
members retire at age 60 members retire at age 60
Allowance for members Allowance for members
Withdrawal to leave employment to leave employment
before retirement before retirement
Life expectancy at age 65 of male aged 45 23.3 22.7
Life expectancy at age 65 of male aged 65 21.9 21.3
Life expectancy at age 65 of female aged 45 25.8 25.5
Life expectancy at age 65 of female aged 65 24.3 23.9
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**78**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
% of the fair % of the fair
Bid values value of the Bid values value of the
as at total plan as at total plan
31 Dec 2021 assets as at 31 Dec 2020 assets as at
31 Dec 2021 31 Dec 2020
£’000 £’000
23. Pensions (continued)
The current asset split is as follows:
Global equities 66,123 20 57,837 19
LDI funds 107,053 31 97,235 32
Diversified credit 25,924 8 25,743 8
Diversified private markets 55,160 17 46,534 15
Multi-asset funds 58,649 18 54,944 18
Currency hedging (450) 0 878 0
Property 15,826 5 13,049 4
Cash 2,820 1 10,880 4
Total assets 331,105 100% 307,100 100%
At 31 Dec 2021 At 31 Dec 2020
£’000 £’000
Balance sheet
Fair value of assets 331,105 307,100
Present value of funded obligations (342,209) (345,819)
Surplus/(deficit) in scheme (11,104) (38,719)
Net defined benefit asset/(liability) (11,104) (38,719)
Period to 31 Dec 2021 Period to 31 Dec 2020
£’000 £’000
Amount recognised in SOFA
Current service cost 0 0
Administration costs 0 0
Interest on liabilities 4,791 6,225
Interest on assets (4,262) (5,497)
Past service costs 0 0
Settlement and curtailment cost 0 (804)
Total charge to SOFA 529 (76)
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TRUSTEES’ REPORT AND ACCOUNTS **2021[79]**
## Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2021
**----- Start of picture text -----**
Period to 31 Dec 2021 Period to 31 Dec 2020
£’000 £’000
23. Pensions (continued)
Remeasurements over the period
Loss/(gain) on assets in excess of interest (25,067) (36,697)
Experience losses/(gains) on liabilities 5,502 (3,749)
Losses/(gains) from changes to demographic assumptions 4,281 (6,718)
Losses/(gains) from changes to financial assumptions (10,856) 51,447
Total remeasurements (26,140) 4,283
Change in value of the assets
Fair value of assets at start 307,100 271,313
Interest on assets 4,262 5,497
Company contributions 2,004 2,000
Contributions by Scheme participants 0 0
Benefits paid (7,328) (8,407)
Administration costs 0 0
Change due to settlements and curtailments 0 0
Return on assets less interest 25,067 36,697
Fair value of assets at end 331,105 307,100
Actual return on assets 29,329 42,194
Change in value of the defined benefit liabilities
Value of liabilities at start 345,819 307,825
Current service cost 0 0
Contributions by Scheme participants 0 0
Past service costs 0 0
Interest on liabilities 4,791 6,225
Benefits paid (7,328) (8,407)
Change due to settlements and curtailments 0 (804)
Experience (gain)/loss on liabilities 5,502 (3,749)
Changes to demographic assumptions 4,281 (6,718)
Changes to financial assumptions (10,856) 51,447
Value of liabilities at end 342,209 345,819
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**80**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
## Purpose of funds
## **Endowment funds**
## **Bowmer Fund**
The terms of this fund require that 50 percent of the income is reinvested to provide an increase of income over time. The balance of the income is for general purposes.
## **The A & D Simpson Fund**
Income from this fund is shared between animal facilities in London.
## **Wyndham Cottle Charity**
Following the transfer of the activities supported by this fund to the Gonsal Farm Equine Centre, the former property was sold. The proceeds, together with the then existing investments, are invested to provide the income to support the ongoing activities of the fund.
## **MT & VL Wythe Charitable Trust**
The assets of this fund were added to the RSPCA’s funds in 2006. The income from this fund is shared equally between the RSPCA, The People’s Dispensary for Sick Animals and Blue Cross.
## **Albekier Fund**
The income from this fund is used for the RSPCA’s cat neutering scheme in London.
## **Restricted funds**
The restricted funds of the Group comprise the unexpended balances of donations, bequests and grants held on trust to be applied for specific purposes..
## **Animal centre capital funds**
These funds represent legacies or donations received towards capital projects at the RSPCA’s national Society animal centres. On completion of the project, the completed asset is transferred to the General Fund. For smaller projects or where the project is coming only partially from these restricted funds, a transfer is made to meet the costs as they are incurred.
## **Animal centre operational funds**
These funds represent regular, one-off and legacy donations that are used to fund the RSPCA’s animal centres.
## **Birmingham Fund**
The Society took over the activities of the RSPCA Birmingham Branch and funds are being used to meet expenditure related to ongoing animal welfare issues within the Birmingham area.
## **Overseas funds**
Income on the Overseas Fund is used to provide assistance for animal welfare overseas.
_Our vet examines a young rabbit for myxomatosis – thankfully this kitten didn’t have the disease and was rehomed._
## **Regional funds**
These comprise 10 separate funds to be used for regional purposes. The funds are hybrid and include restricted and designated elements. Additional disclosure has been provided by their classification as restricted.
## **The Tubney Grant Fund**
The Tubney Charitable Trust is providing funding to a project aiming to work with the commercial duck farming industry to deliver a significant welfare improvement for ducks.
## **Other restricted funds**
Donations and legacies received for specific aspects of the RSPCA’s operations. The balance represents projects still to be completed at the year-end or the excess of restricted income over current net expenditure.
## **Principal addresses**
## **Principal office**
Royal Society for the Prevention of Cruelty to Animals Wilberforce Way, Southwater, Horsham, West Sussex RH13 9RS
## **Bankers**
Coutts & Co Commercial Banking, 440 Strand, London WC2R 0QS NatWest Bank 9th Floor, 250 Bishopsgate, London EC2M 4AA
## **Investment advisers**
Barnett Waddingham 123 London Wall, London EC2Y 5AU
## **Independent auditors**
BDO LLP Chartered Accountants, 55 Baker Street, London W1U 7EU
## **Pension advisers**
XPS Consulting Limited Phoenix House, 1 Station Hill, Reading, Berkshire RG1 1NB
TRUSTEES’ REPORT AND ACCOUNTS **2021[81]**
## RSPCA Board 2021
## **Board of Trustees**
WHO SERVED IN 2021
**Chair** René Olivieri[3 5 10] **Vice Chair** David Thomas[2]
**Treasurer** Barbara Gardner[1] (retired from the Board 27 October 2021)
**Deputy Treasurer** Karen Harley[1 5 6 9 ] (served as Treasurer from 27 October 2021)
Richard Booker[ 1 3 6 ] (re-elected to the Board 23 October 2021) Amanda Bringans[1 ] (casual vacancy appointment to the Board 24 November 2021) Kevin Degenhard[2 3] José Parry[2] Sally Phillips[2 4] Brenda Shore[2 3 ] (re-elected to the Board 23 October 2021) David Smith[1 5 10]
Imogen Walker[4] (re-elected to the Board 23 October 2021) Caroline Waters[2 4 6]
In 2020, René Olivieri was re-appointed as Chair until the AGM in 2023. In 2021, David Thomas was re-appointed as Vice-Chair until the AGM in 2024, Karen Harley was appointed as Treasurer until the AGM in 2023 and Richard Booker was re-appointed as Chair of the Branch Affairs Committee until the AGM in 2024.
## **Co-opted committee members**
WHO SERVED IN 2021
Jane Cotton[4] (re-appointed 27 October 2021) Tom Franklin[4] (re-appointed 27 October 2021) Stuart Howells[1 5] (re-appointed 27 October 2021) Maria Johannessen[5] (appointed 8 December 2021) Hiti Singh[5]
(appointed 8 December 2021) Gillian Switalski[2] (re-appointed 27 October 2021)
John Tennent[1 ] (appointed 8 December 2021)
The Rules of the Society empower the Board to appoint committees of the Board and entrust to these committees such powers and duties as the Board sees fit. The 2021 committees are listed above. During 2021 Board members have served as indicated for some or all of that year on committees of the Board, or the boards of directors of subsidiary companies of the RSPCA.
## **Committees**
**1.** Finance, Audit and Risk Committee (FARCOM)
**2.** Animal Welfare Committee **3.** Branch Affairs Committee
**4.** Governance and Nominations Committee
**5.** Investment Committee
**6.** Remuneration Committee
**7.** RSPCA Pension Scheme Limited Board
**8.** RSPCA Enterprises Limited Board
**9.** RSPCA Trading Limited Board
**10.** Freedom Food Limited Board
## **Patron**
Her Majesty The Queen
## **President**
Dr Richard Ryder
## **Vice-Presidents**
Brian Blessed Baroness Fookes of Plymouth Caroline Lucas Dr Brian May Chris Packham
Our thanks also to Peter Egan, Satish Kumar and Bill Oddie as they reach the end of their tenure as devoted RSPCA Vice-Presidents. We are incredibly grateful to them for their years of support and dedication to animal welfare.
## **Senior management**
AT 31 DECEMBER 2021
**Chief Executive** Chris Sherwood **Chief Operating Officer** John Kerslake **Director of People and Culture** Fiona Evans **Director of Advocacy and Policy** Emma Slawinski **Director of Engagement and Fundraising** Tracey Pritchard **Director of Strategy and Transformation** Emily Tierney **Director of Finance and Business Services** Tania Hudson **Chief Veterinary Officer** Caroline Allen **Chief Legal Officer** Ray Goodfellow **Chief Inspectorate Officer** Dermot Murphy
_Front cover and right: One of four underweight lurcher puppies found abandoned in a plastic bag by a river in Surrey. The pups – named Norma, Jean, Bradley and Cooper – were taken to RSPCA Millbrook Animal Centre where they were found to be suffering from severe fur loss and skin infections caused by sarcoptic mange. Before we rehomed them, they stayed at Millbrook for their rehabilitation which included vaccinations, treatment for mites, antibiotics, and twice-weekly baths with special shampoo to treat skin infections._
**82**[TRUSTEES’ REPORT AND ACCOUNTS ] **[2021]**
**Royal Society for the Prevention of Cruelty to Animals** Wilberforce Way, Southwater, Horsham, West Sussex RH13 9RS 0300 1234 999 www.rspca.org.uk
> [facebook.com/RSPCA ][instagram.com/rspca_official ][linkedin.com/company/rspca ] tiktok.com/@rspca_official[twitter.com/RSPCA_official] The RSPCA helps animals in England and Wales. Registered charity no.219099. The RSPCA only exists with the support of public donations. ©RSPCA 2022. All rights reserved. This material must not be reproduced or used in any manner whatsoever without the express written permission of the RSPCA. This report is printed on Forest Stewardship Council-certified paper. Through responsible management of forests, and verifying the use of recycled materials, the FSC® system can help secure a long-term source of paper. All photos RSPCA Photolibrary unless stated otherwise. Produced by the RSPCA editorial and design teams.