Trustees, report and accounts
2022
## Foreword from the Chair
I’m delighted to share with you our _Trustees’ report and accounts_ for 2022. This was a memorable year for all of us, with the sad death of Her Majesty the Queen marking the end of a defining era in our history.
Queen Elizabeth II had a lifelong passion for animals. She served as our patron during her reign, following in the footsteps of her great-great-grandmother Queen Victoria, who was another animal lover and our first patron in 1840. In a wonderful gesture, the Queen permitted us to create a new award to honour those who have made a significant contribution to animal welfare. Her dedication to animals and her many years of support for the RSPCA will never be forgotten.
Many of us will remember 2022 as a year of multiple storms and disruptions at home and abroad. As is often the case, these human crises also had significant impacts on animal welfare. But all our volunteers, supporters, partners and staff showed immense resilience and determination to protect animals’ lives throughout this challenging year, and I’d like to thank each and every one of them.
The cost-of-living crisis meant many people were suddenly faced with the trauma of simply not having enough money to be able to look after their pets properly. Our branch teams and inspectors know their communities well and they swiftly anticipated the crisis, moving quickly to plug the gaps with practical support, from pet food donations to welfare advice. Their efforts have allowed many animals to stay in good, loving homes.
The war in Ukraine sent shockwaves around the world, but I am so proud that we stood with the country and that the RSPCA was able to help fleeing owners keep their beloved pets. Tragically, animals have been left behind in previous conflicts, so this was a real first.
It looks like things are not going to settle down any time soon and we are certainly likely to face more challenges in the future. An ageing society will put huge pressure on public spending, there will be the impacts of climate change and extreme weather events, economic uncertainty, population growth and no doubt further unrest overseas. All of these, as we’ve already seen in 2022, can have a direct impact on animal welfare.
But there is always hope of positive change in the world and we are determined to continue to make it a kinder and more compassionate place for animals. We know we’re not alone in that desire, because in fact protecting animal welfare is important to most people. Our very first annual _Animal Kindness Index_ confirmed what many of us probably suspected already – we are definitely a nation of animal lovers. The public thinks animal welfare matters and wants it to be protected in law and taught in schools.
## **Our vision reflects those values:**
_Our vision is a world where all animals are respected and treated with kindness and compassion._
## **And our mission to deliver this vision:**
_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._
That shared desire for a kinder world for animals is an incredibly powerful force. It drives the community action that is embedded in our history and in our DNA. With more than 1 million people
**2 TRUSTEES’ REPORT AND ACCOUNTS 2022**
**…there is always hope of positive change in the world and we are determined to continue to make it a kinder and more compassionate place for animals. We know we’re not alone in that desire...protecting animal welfare is important to most people.**
acting as our eyes and ears by contacting us about animal welfare issues, 105,000+ new supporters coming on board, 26,000+ volunteer hours being donated and 8.8 million social media engagements being made in 2022 alone, we are pushing forward to bring ever more people on board – at least a million of them by 2030 – to help us deliver on our 10-year strategy, _Together for animal welfare_ . In harnessing that sort of support we believe we can reach our ambitions to dramatically change animals’ lives for the better by then.
Throughout 2022, we continued to rescue, rehabilitate, care for and rehome or release many thousands of animals. But none of that happens in isolation – as a community-based organisation, we absolutely rely on individuals and communities to get behind us and get involved. For example, we brought on board 170 animal rescue volunteers to help us collect animals in need, and introduced a new volunteering programme to empower people to create safe spaces for the wild animals who share our world. Our inspectors gave out more than 28,000 advice notices to help animal owners better understand what they could do to protect their own animals. And our amazing volunteers donated whatever time they could, whether several hours a week walking dogs or socialising kittens, or just a few minutes to sign up to a campaign or share our advice and information online – it all makes such a difference. Together, we are so much stronger.
We are just over a year away from our 200th anniversary in 2024. This will be a real spotlight year for the RSPCA, when the public will have multiple chances to see us, to join us in celebrating our history and to reappraise our unique contribution to society
from the very birth of the animal welfare movement that began with us in 1824 and spread around the world. We are looking forward to reaching many new audiences and bringing more and more people on board to help us deliver the good lives for animals that we all want. It’s so exciting to anticipate what we’ll be able to achieve together.
This year, we say goodbye to our president, Richard Ryder. Richard has given many years of excellent service to the RSPCA and to animals. In recognition and gratitude, we have awarded him our highest honour, the Queen Victoria Gold Award.
Taking his place, I’d like to give a warm welcome to TV personality and wildlife expert Chris Packham, who has supported the RSPCA for many years. He is a strong, respected voice for animals whose commitment and passion can only help us achieve even more in the future.
Finally, let me finish by thanking the entire RSPCA community for their amazing achievements for animals once again this year. Our branches, volunteers, staff, partners and supporters make this the compassionate, pioneering organisation it has always been and will continue to be. The achievements highlighted in this report are thanks to all of them.
**René Olivieri**
Chair, RSPCA
**TRUSTEES’ REPORT AND ACCOUNTS 2022 3**
## Foreword from the
## Chief Executive
2022 was truly a year of disruption for so many of us, with fast-moving changes in government, the economy, the climate and on the world stage. The war in Ukraine, energy price hikes, ongoing Brexit impacts and a cost-of-living crisis meant that disruption became pretty much the new normal.
Issues like these inevitably impact on animals’ lives and on the RSPCA itself – but we are experienced ‘disruptors’ too. For nearly 200 years we have literally been here to change the world for the better – and we’ve done it, time and time again. Now, from a position of real organisational strength and stability, we’re anticipating and preparing for whatever challenges may lie ahead, so that we can carry on with our mission to achieve a world that is kinder to animals.
In times of uncertainty, people want hope and optimism, and animal welfare can provide that. We know it can easily be sidelined as a ‘nice to have’ when what may seem to be more pressing issues need to be addressed. Yet animals enrich and improve all our lives, and their lives are important in themselves. They are a vital part of the fragile ecosystem we all share. Most people recognise their importance and value – that’s why the RSPCA came into being nearly 200 years ago and is still championing animal welfare today.
In 2022, the cost-of-living crisis immediately posed a huge threat to animal welfare and we mounted a strong response, investing £1.5 million to support pet owners and smaller charities. We set up a cost-of-living hub with a voucher scheme to help people pay for veterinary care. We also gave grants to smaller charities so they could keep their doors open, and expanded our hugely successful pet food bank scheme.
When the disastrous war in Ukraine caused people to flee their homes – often with their beloved pets in tow – we stepped in to make sure those pets were protected and didn’t end up transferring diseases to pets already living here.
Because we are here both to help animals in need and to prevent suffering from happening in the first place, we stepped up our efforts to encourage people to put their time, their voices or their money into supporting us on both fronts – and so many of them did. We are making real progress towards building our million-strong network of dedicated animal welfare supporters, who will promote animal welfare across all our communities.
Despite the year’s economic challenges, our fundraising remained stable, thanks in part to some exciting new partnerships. Our Omaze prize draw, for example, raised more than £1 million in one of Omaze’s most successful draws.
Working together with all our partners – including our branches, other charities, communities and individuals – we were able to achieve so much. For example, we worked with the PDSA, which took over our public veterinary work, allowing our own vets to focus on animals suffering the very worst cruelty and neglect. We also worked with mental health and youth services, to help them spot signs of animal abuse. We began a new partnership with higher-welfare pet food brand McAdams. And we combined our voice with those of other animal charities to get real and lasting change for animals, such as the Sentience Act, a new law on cat microchipping and a ban on cruel glue traps.
Despite this progress, the government dithered and delayed on other promised animal welfare reforms – we still don’t have a ban on the live export of animals for fattening and slaughter, for example. But with more than 100,000 supporters getting behind us, we kept up the pressure on this and a raft of other animal welfare demands.
**4 TRUSTEES’ REPORT AND ACCOUNTS 2022**
We made advances towards our aim to have more than half of all farm animals reared under RSPCA welfare standards by 2030. Our farm assurance and food-labelling scheme RSPCA Assured strengthened its partnership with M&S, for example. In an industry first, this national retailer has become the first to commit to selling only slower-reared, higher-welfare fresh chicken.
Another challenge that continued throughout 2022 was the terrible avian influenza outbreak. We took a cross-organisational approach to tackle it through our branches and through our field operations, external affairs, advice and RSPCA Assured teams.
Meanwhile, discussions advanced with the Government and the Crown Prosecution Service (CPS) about transferring our prosecution function to it, so we can focus on building evidence to support animal welfare prosecutions. We continued to bring the perpetrators of animal cruelty to book though – 400 of them in 2022, including all the members of an organised puppy-trading ring.
As always, we faced huge demand for our services in 2022, particularly over our busiest spring and summer season. Our inspectors and rescue officers were under enormous pressure. I would particularly like to give my heartfelt thanks to all those frontline teams, who worked so hard through such challenging circumstances, providing vital care for animals. We are now reviewing the way we prioritise our frontline work to ensure that we focus our specialist officers where they can make the most difference, doing the job no other organisation does and helping the animals who need us the most.
Being a great place to work and volunteer is an essential part of our strategy. The better we support our people, the more they can achieve for animals. In 2022, we appointed a new head of equality, diversity and inclusion, took the age-positive pledge, embraced hybrid working and became a Disability Committed employer. To bring about our ambitions for animal welfare, it’s vital that we attract the best talent and make sure our people truly reflect the diverse communities in which we work.
We are prioritising environmental sustainability too. Climate change, biodiversity loss and environmental degradation are
**Working together with all our partners – including our branches, other charities, communities and individuals – we were able to achieve so much.**
already impacting animal welfare and we must be part of positive solutions. We also recognise our own impact on the environment and began work in 2022 to address this.
We have been a strong voice for animals in 2022 through our exciting thought-leadership programme, which explores some of the really important issues facing animal welfare. We kicked off with our fascinating essay collection, _What have animals ever done for us?_ Our first annual _Animal Kindness Index_ , in partnership with the SSPCA, outlined attitudes towards animals in the UK today. We held our inaugural annual Wilberforce Lecture, with speaker Henry Dimbleby. We launched a commission on the future of animal welfare. And, because the needs of animals, people and the environment are inextricably linked, we began exploring how animal welfare interacts with social and climate justice.
As our bicentenary year approaches in 2024, next year will be an incredibly exciting time. Plans are well underway to create a year of events and activities that showcase our history and our future at the forefront of animal welfare. We’ll use the opportunity to engage a whole new generation of supporters. They – and all our supporters – will help us write the next chapter of our fantastic organisation’s history. As we move into our third century, we’ll continue to be a positive disruptor so that we can achieve a kinder world for all animals.
## **Chris Sherwood**
RSPCA Chief Executive
**TRUSTEES’ REPORT AND ACCOUNTS 2022 5**
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RSPCA Inspector Lisa Lupson visits a puppy
in her new home. She had suffered multiple fractures
at the hands of her former owner.
**----- End of picture text -----**
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What we do
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## For nearly 200 years, the RSPCA has driven tremendous progress in the way humans treat animals, as well as lifting countless individual animals in need out of harm’s way.
As we approach our 200th anniversary in 2024, we are in great shape to be able to tackle the continuous disruption and upheaval that have become part of today’s world and that so often impact on animal welfare. Our bold modernisation plans have put us in a strong position to weather challenging times ahead so that we’ll still be here for animals for generations to come.
## **Our vision**
is a world where all animals are respected and treated with kindness and compassion.
## **Our mission**
## **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.
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.
We are **expert:**
l we have expert knowledge, which we willingly share
l we act on the basis of evidence
## **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 make animals’ lives better
- l we underpin our decisions and actions with science, data and experience.
## We have **integrity:**
l we are honest and trustworthy
l we act with integrity
l we do what’s right.
**6 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## Key statistics in 2022
**----- Start of picture text -----**
138,925 63,563
welfare incidents 1,098,806 complaints of
dealt with by calls to the RSPCA alleged cruelty
our Inspectorate investigated
28,514
welfare notices
406 7,851
and advice given
equines taken in dogs taken in
out to improve
animal care
7,814
21,092 2,801 wild animals
cats taken in rabbits taken in admitted to our
wildlife centres
81,368
36,227 55,846
treatments dispensed
animals microchipped animals neutered
(not including neutering)
Figures quoted relate to the RSPCA and its branches where relevant.
807
400 As we approach our 200th
convictions secured
in the magistrates’ people convicted anniversary in 2024, we are in great shape
or crown courts for animal to be able to tackle the continuous
for animal welfare offences
disruption and upheaval…that so often
welfare offences*
*(some people are convicted for multiple offences) impact on animal welfare.
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**TRUSTEES’ REPORT AND ACCOUNTS 2022 7**
**OUR 2021–2030 STRATEGY: TOGETHER FOR ANIMAL WELFARE**
**Grey seals released in North Devon, following their rehabilitation at RSPCA West Hatch Wildlife Centre.**
## Our 2021–2030 strategy:
## Together for animal welfare
In this, the RSPCA’s bicentenary decade, we are delivering our ambitious 10-year strategy, . _Together for animal welfare_
## **Our ambitions**
Eight bold ambitions, which will have a dramatic and positive impact on millions of animals’ lives, are driving 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
This report summarises some of the main achievements we made towards our ambitions in 2022.
## **Staying strong**
The decisions we took when writing our strategy were designed to future-proof the RSPCA so that we can continue to survive and thrive through unforeseen events and crises as we head into our third century. Those decisions were put to the test immediately when the COVID-19 pandemic hit. Thankfully, they gave us a firm foundation to be able to carry on protecting animals and emerge stronger than ever.
The challenges continued through 2022, with an ongoing economic crisis, governmental upheavals, the war in Ukraine, a fluctuating legislative agenda, the climate emergency and a serious avian flu outbreak, all of which had the potential to have direct and indirect impacts on animal welfare.
Protecting animal welfare is not something we can do in isolation. By working together and with others to be part of the solution to these challenges, which have such far-reaching impacts, we can fully embrace the many opportunities for improving animals’ lives and for building a better, safer world for all of us.
**8 TRUSTEES’ REPORT AND ACCOUNTS 2022**
|**Table 1 RSPCA advice and prosecution**
**statistics for England and Wales**|**2022**|2021|
|---|---|---|
|Telephone calls answered|**1,098,806**|1,081,018|
|Complaints of alleged cruelty investigated|**63,563**|51,505|
|Welfare improvement advice and
notices dispensed|**28,514**|25,651|
|Cases reported to the RSPCA
Prosecutions Department|**873**|642|
|Suspects reported to the RSPCA
Prosecutions Department|**1,182**|922|
|Defendants convicted (youth ofenders)|**400 (3)**|350 (4)|
|Convictions secured in the magistrates’
or crown court (youth ofenders)|**807 (6)**|751 (6)|
**Table 2 Number of animals taken in, treated, neutered and microchipped by the RSPCA and its branches in England and Wales in 2022**
|**Table 2 Number of animals taken in, treated, neutered and microchipped**
**by the RSPCA and its branches in England and Wales in 2022**|**Table 2 Number of animals taken in, treated, neutered and microchipped**
**by the RSPCA and its branches in England and Wales in 2022**|**Table 2 Number of animals taken in, treated, neutered and microchipped**
**by the RSPCA and its branches in England and Wales in 2022**|**Table 2 Number of animals taken in, treated, neutered and microchipped**
**by the RSPCA and its branches in England and Wales in 2022**|**Table 2 Number of animals taken in, treated, neutered and microchipped**
**by the RSPCA and its branches in England and Wales in 2022**|**Table 2 Number of animals taken in, treated, neutered and microchipped**
**by the RSPCA and its branches in England and Wales in 2022**|
|---|---|---|---|---|---|
|||||||
|**Animal treatments: hospitals, clinics and branches***||||||
|Animals treated|||Operations|||
|89,794|||2,608|||
|**Taken in**||||||
|Cats|Dogs|Wildlife and others||**Total 2022**|Total 2021|
|21,092|7,851|20,560||**49,503**|59,792|
|**Neutered**||||||
|Cats|Dogs|Other animals||**Total 2022**|Total 2021|
|44,734|8,101|3,011||**55,846**|46,806|
|**Microchipped**||||||
|Cats|Dogs|Other animals||**Total 2022**|Total 2021|
|30,652|3,086|2,489||**36,277**|37,497|
*(excluding neutering and microchipping)
## **Our decisions**
**The decisions we took when writing our strategy were designed to future-proof the RSPCA so that we can continue to survive and thrive through unforeseen events and crises as we head into our third century.**
|**BECAUSE WE WANT TO…**|**…WE DECIDED TO…**|
|---|---|
|✚ focus our vital resources
where we can have the most
impact for animals|✚ adapt our frontline work, for example:
l moving away from public-facing veterinary work, to focus on the animals who need us most
l partnering with other charities, organisations and communities to reach even more animals|
|✚ support animal owners
through the cost-of-living crisis|✚ pledge**£1.5 million**to expand our pet food bank schemes and increase capacity in smaller
animal charities
✚ launch a dedicated cost-of-living hub on our website to help struggling pet owners|
|✚ improve animal welfare in a
post-Brexit world|✚ infuence free trade deals being negotiated by the UK to protect our hard-won welfare standards
✚ campaign even harder to improve welfare for animals in England and Wales through new laws|
|✚ become thought leaders on
animal welfare and ensure its
status at the centre of debates
on major issues|✚ launch our annual_Animal Kindness Index_, a thought-provoking essay collection, and our
inaugural Wilberforce Lecture
✚ work to understand the implications of climate change on our operations – and our
contribution to it – which we recognise needs sufcient focus|
|✚ attract the best talent and
make the RSPCA a great place
to work|✚ move to hybrid working
✚ sell our former head ofce at Southwater and set up new, more accessible ofces, so we
can recruit talented candidates from a far wider geographical area
✚ improve our focus on equity, diversity and inclusion
✚ launch a people and culture plan ofering additional support and benefts to our staf|
## **Our work falls into five priority areas.**
**1. RESCUE AND CARE 2. ADVOCACY 3. PREVENTION 4. SUPPORTERS 5. ORGANISATIONAL EFFECTIVENESS**
**TRUSTEES’ REPORT AND ACCOUNTS 2022 9**
**OUR RESCUE AND CARE WORK IN 2022**
## **Strategic objectives**
We respond to calls from the public to our cruelty and advice line roughly **every 29 seconds.**
We go out to rescue animals from harm and danger about **600 times a day.** We take in, care for and rehome or rehabilitate **many thousands of animals** a year.
We bring **hundreds of perpetrators of animal cruelty** to justice each year.
## Rescue and care
## **Responding to the public**
|**WE SAID WE’D…**|**…AND WE DID IT BY…**|**THE IMPACT ON ANIMALS**|
|---|---|---|
|✚ respond to calls from the
public more quickly|✚ introducing conversational AI on our
website and the opportunity to escalate to
a web chat with an agent if necessary|✚The public got the information they needed
fast, while our call handlers dealt with more
complex calls about animals in immediate need|
|✚ handle rescue callouts
more efciently|✚ using updated tasking software to pass
incidents straight to the right ofcers|✚Animals in need received support from
those best able to help|
|✚ deliver savings of £9 million
over eight years – this objective
will be reviewed in 2023 to
ensure it delivers the right
impact for our benefciaries|✚ making efciencies in the handling of reports
from members of the public, driving £1.3 million
of savings compared to 2021|✚Efcient use of our resources helps us to
continue supporting animals and the public
during an economic downturn|
## **Rescuing animals**
|**WE SAID WE’D…**|**…AND WE DID IT BY…**|**THE IMPACT ON ANIMALS**|
|---|---|---|
|✚ bring volunteer rescuers
on board to support
frontline ofcers|✚having around 367 paid rescuers on the
ground, and 170 volunteer rescuers (NB: we did
not have reliable data before 2022, so these
fgures represent our baseline going forward)|✚We rescued many thousands of animals
from harm|
|✚ promote better
animal care|✚giving animal owners welfare improvement
advice on 28,514 occasions, compared to
25,651 occasions in 2021|✚We helped owners to look after their animals,
so they received the care they needed|
**10 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Helping animals – and their owners – from war-torn Ukraine**
We know that human disasters, such as the horrific war in Ukraine, inevitably impact on animals too. As people fled from danger, it was so moving to see the incredible efforts they and aid workers made to get their pets to safety too. Immediately, our teams began collecting pet food and veterinary supplies to send to animals in need. We also supported organisations helping animals on the ground in Ukraine. Behind the scenes, we worked with other animal welfare charities and the government to make it quicker and easier for refugees to enter the UK with their pets. We didn’t want traumatised pet owners to have the added heartbreak of losing their beloved pets, so we adapted one of our animal centres as an isolation unit for up to 40 cats and dogs, to eliminate the risk of their bringing in diseases such as rabies.
## **Caring for animals**
|**WE SAID WE’D…**|**…AND WE DID IT BY…**|**THE IMPACT ON ANIMALS**|
|---|---|---|
|✚ ensure the best outcomes
for animals in our care|✚ developing an innovative Animal Voice
approach under our Animal Journey programme,
allowing us to understand animals’ needs from
their perspective and get an objective measurement
of the impact of our care on their welfare
✚ piloting this approach with equines, alongside
tailored care plans focused on individual animals’
health, welfare and behavioural needs|✚The animals in our care will get even more
tailored support, ensuring we can respond
quickly to any issues|
|✚ work more closely
with partners|✚ sharing our Animal Journey and Animal Voice
work with our partners
✚ launching our frst major veterinary
partnership with the PDSA, which took over
our public veterinary work in Manchester,
Birmingham and Merthyr Tydfl|✚More of the animals in our care beneft from
our in-house veterinary expertise
✚Our vets can maximise animal welfare by
working more closely with our frontline
workers to understand, forecast and prepare
for the challenges they face|
**Justice for animals**
|**WE SAID WE’D…**|**…AND WE DID IT BY…**|**THE IMPACT ON ANIMALS**|
|---|---|---|
|✚ move towards handing
over our prosecution work
to the Crown Prosecution
Service (CPS), while retaining
our vital role in supplying
evidence to support any
animal cruelty prosecutions|✚ holding discussions with the government,
though with no timescales agreed as yet
✚ focusing on streamlining our in-house
investigation and prosecution processes to
put us in the best position once we have
a decision|✚Animal welfare prosecution cases will
have the accountability associated with the
oversight of a public body|
|✚ continue to prosecute
animal cruelty cases in
the meantime|✚ bringing 400 individuals to justice for animal
welfare ofences
✚ mounting a sophisticated operation to break
an organised puppy-trading ring and bring all
the criminals involved to book
✚ achieving a 95 percent success rate
in convictions|✚Publicity around cruelty and neglect
prosecutions encourages people to think and
talk about how humans should treat animals
✚Prosecuting animal abusers drives home the
message that cruelty is wrong and has no place
in society
✚Animals rescued from convicted abusers are
not returned to them to be abused again
✚Convicted abusers may be disqualifed from
keeping animals, to prevent them from causing
harm to animals in the future|
**TRUSTEES’ REPORT AND ACCOUNTS 2022 11**
**OUR ADVOCACY WORK IN 2022**
## **Strategic objectives**
We encourage the public to adopt **compassionate attitudes and behaviours** towards animals.
We work with the **manufacturing, farming, retail and hospitality** sectors to ensure high animal welfare is a priority.
We persuade legislators to improve animal welfare by **passing new laws.** We work with **partners and governments** to promote high animal welfare standards.
## Advocacy
**Abandoned, emaciated lurcher Bram was rehomed after being rescued and receiving rehabilitation at RSPCA Great Ayton Animal Centre.**
## **Changing attitudes and behaviours**
|**WE SAID WE’D…**|**…AND WE DID IT BY…**|**THE IMPACT ON ANIMALS**|
|---|---|---|
|✚ pull all our campaigning
activity together under
key themes|✚ deciding on three campaign themes
(currently in draft form only):
l Together for animal welfare
l Their pain, no gain
l Don’t forget respect|✚Our campaigns encourage new thinking
and behaviour towards animals – for example,
because 90 councils banned the use and
release of sky lanterns and balloons in 2022
(and more are coming on board in 2023), fewer
animals will come to harm and our rescuers
will be able to focus on others in need|
|✚ investigate the challenges
and opportunities for animal
welfare to 2050 and beyond|✚ setting up a commission to examine the
links between animal and human welfare,
environmental sustainability and how we can
achieve a cruelty-free future|✚Animal welfare is taking its rightful place
at the centre of debates on major issues such
as food security and sustainability, climate
change and human wellbeing|
|✚ establish the RSPCA as a
thought leader|✚ publishing a book of essays by high-profle
thinkers,_What have animals ever done for us?_
✚ kicking of our annual Wilberforce Lecture
series, refecting on the 200 years since one
of the RSPCA’s founders championed the frst
animal welfare legislation in 1822|✚People are prompted to think more deeply
about how we engage with animals, the full
impact our actions have and what we can do
as individuals to support animal welfare|
|✚ initiate an annual RSPCA
communications moment
around society’s kindness
to animals|✚ launching the frst annual RSPCA and Scottish
SPCA_Animal Kindness Index_|✚The overwhelming public support revealed
for laws and education to protect animals and
promote kindness will strengthen our eforts|
**12 TRUSTEES’ REPORT AND ACCOUNTS 2022**
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Nine-year-old Sofia at home
with her kitten Jessie,
who was born at RSPCA
Leybourne Animal Centre.
**----- End of picture text -----**
## **First** _**Animal Kindness Index**_ **confirms we’re a nation of animal lovers**
Our very first annual _Animal Kindness Index_ told us a lot about the UK and its attitudes to animals in 2022. Commissioned by the RSPCA and the Scottish SPCA, it revealed us to be a nation of animal lovers who see animal welfare as the responsibility of everyone, including governments.
Worryingly, the cost-of-living crisis is having an impact on pet owners, with 28 percent being concerned about being able to afford the right care for their pets. A huge rise in online searches for cheap vets or questions about selftreating pets tells an alarming story.
Overwhelmingly, people think animal welfare should be taught in schools, which supports our ambition to have it included in the National Curriculum.
## **New animal welfare laws passed**
**Our very first annual** _**Animal Kindness Index**_ **...revealed us to be a nation of animal lovers who see animal welfare as the responsibility of everyone, including governments.**
Sadly, though the government made 39 promises that would make a real and lasting difference to animal welfare in its Action Plan for Animals in 2021, only three were completed into law in 2022 and 19 stalled. However, we continued to advocate for action and welcome the announcement that farmers who farm to higher welfare standards will receive subsidy payments.
l The Animal Welfare (Sentience) Act means animal sentience is recognised in law
l A ban was passed on the unlicensed use of cruel glue traps in England
## **Changing laws**
l Cat microchipping is to be introduced for owned cats from April 2024
|**WE SAID WE’D…**|**…AND WE DID IT BY…**|**THE IMPACT ON ANIMALS**|
|---|---|---|
|✚ push for a UN declaration
or convention on animal
protection|✚ securing a UN resolution, which acknowledges
that animals are sentient and their welfare
should be protected|✚This is a signifcant step towards better
animal welfare worldwide|
|✚ target illegal hare coursing|✚ seeing hare coursing encompassed in the Police
and Crime Act, along with increased sentencing|✚Fewer hares will sufer and, with police
taking the lead on such cases, our frontline
rescuers can focus on other animals in need|
|✚ encourage the government
to set up a new
Sentience Committee|✚ securing the Sentience Act and agreement
to set up a government committee for England,
which is now testing policy-makers’ focus on
animal sentience|✚Millions of animals will be protected from
unnecessary harm with animal sentience now
frmly at the heart of policy-making decisions|
**TRUSTEES’ REPORT AND ACCOUNTS 2022 13**
**OUR PREVENTION WORK IN 2022**
**Strategic objectives** We put **preventing cruelty** at the heart of all our education work with children, young people and communities. We encourage **compassion in children and young people** by producing engaging resources and encouraging activities in schools and local communities. We provide accessible, **easy-to-follow information and advice** for the public to help them understand and meet animals’ needs. We work with partners to give **targeted support** where it is most needed in communities. We undertake research to understand **when, how and why** cruelty happens and how to stop it happening again. **Birmingham Schools Engagement Officer Rachel Winsor talking to primary schoolchildren about getting involved in the Great British Spring Clean litter pick.** Prevention
## **Nurturing children and young people**
|**WE SAID WE’D…**|**…AND WE DID IT BY…**|**THE IMPACT ON ANIMALS**|
|---|---|---|
|✚ continue to inspire young
people to be kind to animals|✚ reaching 421,412 children (mostly 7 to 11
year olds), teachers, youth workers and other
professionals through our education programmes
and resources
✚ engaging 17,743 disadvantaged young people
(mostly 11 to 14 year olds) at our four education
hubs in local communities|✚Inspiring compassion in children and young
people can infuence them for the rest of their
lives and lead to a kinder society
✚Working with young people who don’t
typically get to interact positively with animals
can help build empathy and confdence|
|✚ move towards getting
animal welfare taught in all
schools by 2030|✚ starting conversations with the English and
Welsh governments and establishing public
support for the change
✚ preparing messaging and resources for
educators and young people|✚Fewer cases of animal cruelty and neglect
in the future could result from all children
receiving vital animal welfare education at
school, which will create a society of
compassionate, informed young people|
**14 TRUSTEES’ REPORT AND ACCOUNTS 2022**
**We can put preventative measures in place to reduce the risk of harm to animals by preparing for future challenges.**
## **Practical support and advice for the public**
|**WE SAID WE’D…**|**…AND WE DID IT BY…**|**THE IMPACT ON ANIMALS**|
|---|---|---|
|✚ provide the public with
easy-to-access, relevant
information on demand|✚ reviewing the experience people have of our
website to improve its accessibility, consistency
and ease of use
✚ introducing a new digital design system –
a toolkit that ensures a good user experience
across the website|✚Better informed people make better decisions
about animal welfare|
|✚ collaborate with partners
who are already in touch
with those we want to reach|✚ establishing partnerships with NHS mental
health services, Relate and youth services
✚ providing training, information and advice
to our partners|✚Partner agencies are now in a stronger
position to spot any animal welfare concerns
they may encounter and to work with us to
keep animals safe|
|✚ use partnership working to
make a practical diference
in communities|✚ working with other animal and welfare
charities – such as FareShare, Cats Protection,
Dogs Trust and Battersea – to support pet
owners during the cost-of-living crisis
✚ expanding our pet food bank initiative
across England and Wales
✚ helping other animal rescue organisations
to survive|✚Pet owners get the help they need for their
animals, when they need it, if we share resources
and work together, for example through joint
distribution of pet food donations|
## **Understanding cruelty**
|**WE SAID WE’D…**|**…AND WE DID IT BY…**|**THE IMPACT ON ANIMALS**|
|---|---|---|
|✚ prepare for upcoming
animal welfare issues|✚ identifying illegal dog fertility clinics, a rabbit
welfare crisis and a capacity crisis in our centres
as upcoming areas for concern
✚ responding to the cost-of-living crisis,
expanding our food bank work and ofering
other support to help keep pets in good
homes with their owners|✚We can put preventative measures in
place to reduce the risk of harm to animals by
preparing for future challenges|
|✚ identify where we can do
the most good|✚ plotting areas of deprivation, pet ownership
and animal services on data maps|✚We can focus our cruelty prevention work
in areas where animals are most at risk|
|✚ continue academic
research into the reasons
behind cruelty|✚ continuing a research project with the
University of Kent
✚ working with a PhD student to review how
our learning programme for young people
involved in animal cruelty,_Breaking the chain_,
afects their behaviour and attitudes|✚Where cruelty or neglect have already
happened, we can and do step in to stop them
happening again|
**TRUSTEES’ REPORT AND ACCOUNTS 2022 15**
**----- Start of picture text -----**
RSPCA South East Somerset Branch donates pet food
to local food banks so pet owners who’ve fallen on
hard times can feed their pets.
**----- End of picture text -----**
**16 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Feeding pets in hard times**
It’s been a tough few years for pet owners, with first COVID-19 and then a cost-of-living crisis leaving many struggling to afford proper care for their beloved pets.
Our branches and inspectors working in communities know their local areas intimately and understand only too well how human emergencies can have a dramatic impact on pets. As soon as they saw that people were struggling due to COVID-19, they began setting up incredible local initiatives to help. As the cost-of-living crisis then took hold, more and more schemes sprang up right across the RSPCA. Teaming up with other local groups – such as food banks and food parcel distributors – they have been providing donated pet food and welfare support to help owners keep their pets safe and well in good homes.
Many thousands of animals have been protected through these initiatives. In our northern region alone, our teams sent out the equivalent of around 140,000 daily dog meals and 65,000 daily cat meals in 2022.
We are now in the process of joining all these initiatives up in our Pet Food Bank Partnership, with our branches, volunteers, inspectors, human food banks, local groups, pet food manufacturers and suppliers and other generous donors all working together to provide practical support wherever it is most needed.
Thanks to our dedicated branches, workers and volunteers operating in the heart of communities across England and Wales, fewer animals will suffer from lack of food or delays in basic health care through the current crisis, and fewer will be abandoned, to be rescued, cared for and rehomed by the RSPCA and other animal welfare charities.
**Our branches and inspectors working in communities know their local areas intimately and understand only too well how human emergencies can have a dramatic impact on pets.**
**TRUSTEES’ REPORT AND ACCOUNTS 2022 17**
**OUR SUPPORTER WORK IN 2022**
**Strategic objectives RSPCA Brighton Branch’s stand at Brighton Pride was organised and** Our supporters are **essential run by staff and volunteers. to everything** we do. They directly **improve the lives of animals** in need by providing all our funding. They also **drive societal change** in attitudes and behaviour by getting behind our campaigns, promoting our fundraising appeals and sharing our messages. Many thousands of volunteers and supporters get involved in **fundraising and animal care** activities in their communities. Supporters
## **Engaging more supporters**
|**WE SAID WE’D…**|**…AND WE DID IT BY…**|**THE IMPACT ON ANIMALS**|
|---|---|---|
|✚ engage more supporters
in new ways, including on
social media|✚ looking carefully at who we could engage
and what we could achieve together
✚ recruiting 105,226 new supporters
✚ running tailored, research-based appeals,
such as a festive rafe and TV adverts
encouraging donations and gifts in wills
✚ ofering new ways to engage, such as a
#50MilesforAnimals event
✚ increasing our social media audience by
more than 48,000, with more than 8.8 million
social media engagements|✚Animals in need beneft directly from the
fnancial and campaigning support of all the
people who engage with our work|
|✚ review our brand|✚ looking carefully at how well our brand
represents the RSPCA of today
✚ understanding how our audiences feel about
the RSPCA|✚We can continue to be here for animals
with a brand that refects our true nature and
increases our relevance for the people most
likely to support us in the future|
|✚ develop a broad
volunteer base refecting
local communities and
modern society|✚ providing inclusive volunteer training
and support designed to attract and keep
our brilliant volunteers on board to deliver
our strategy
✚ seeing more than 26,000 hours of volunteering
hours donated by our supporters|✚Many of the animals in our care depend on
our dedicated volunteers on the ground in
their communities, who care for, rehome or
release them, fundraise for them and promote
our animal welfare messages|
**18 TRUSTEES’ REPORT AND ACCOUNTS 2022**
**Ambassadors and influencers help spread our messages and encourage people to take active steps to improve animal welfare.**
|**WE SAID WE’D…**|**…AND WE DID IT BY…**|**THE IMPACT ON ANIMALS**|
|---|---|---|
|✚ plan for our 200th
anniversary celebrations
in 2024|✚ using an approach that puts audiences’ needs
at the core of planned events and activities
✚ holding warm-up celebrations, such as an
exhibition at Horsham Museum|✚More people will be inspired by what we’ve
achieved for animals over nearly 200 years –
with the support of animal lovers like them
– and will want to get involved to help us
achieve even more|
|✚ advance our work to
develop a million-strong
movement for animal welfare|✚ starting work on an ambitious new approach
to community engagement|✚This new approach will enable more animal
lovers to work together with us, improving the
lives of many more animals|
|✚ improve our supporters’
engagement and commitment|✚ mapping our supporters’ lifetime journey|✚Showing our supporters the diference they
make and how vital they are to animals in need
helps to keep them on board|
|✚ have a new approach
to establishing a positive
ongoing relationship
with supporters|✚ encouraging engagement and retention
when we bring people on board by celebrating
our past and our successes, while focusing on
our relevance now and in the future|✚Showing new supporters that they are part
of an efective, established, successful and
ever-evolving organisation assures them their
contributions will always make a diference|
||**Forging partnerships**|**Forging partnerships**||
|---|---|---|---|
|||||
||**WE SAID WE’D…**|**…AND WE DID IT BY…**|**THE IMPACT ON ANIMALS**|
||✚ connect with efective
ambassadors and infuencers|✚ engaging 70 VIPs in our frontline, media,
fundraising campaigns and advocacy work|✚Ambassadors and infuencers help spread
our messages and encourage people to take
active steps to improve animal welfare – on
social media alone they reached more than
16.5 million people|
||✚ put measures in place to
grow our income|✚ building on relationships with 38 philanthropic
trusts and grant-giving bodies
✚ raising more than £1 million with our Omaze
House Draw and £350,000 from the players of
the People’s Postcode Lottery|✚Income via a broader range of partners
builds our fnancial sustainability and ensures
we can deliver our plans to improve the lives
of more animals|
||✚ establish new business
partnerships|✚ linking with higher-welfare pet food brand
McAdams
✚ making a deal with Thortful greetings cards
to produce a line of celebrity-illustrated RSPCA
greetings cards|✚The welfare of farm animals used in pet
food production is brought to the public’s
attention by our links with McAdams
✚Thortful cards promote our work and tap
into the public’s animal-loving nature|
||✚ build on our existing
partnerships|✚ implementing plans to maintain or grow
income from these partnerships|✚Our food bank programme, in partnership
with Pets at Home, is delivering essential food
and support for veterinary care to pets in
homes deeply afected by the cost-of-living
crisis, allowing them to stay with the families
who love them|
**TRUSTEES’ REPORT AND ACCOUNTS 2022 19**
## Volunteering summary 2022
**Total number of volunteers by quarter (averages, allowing for starters and leavers)**
**----- Start of picture text -----**
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Q1 Q2 Q3 Q4*
*following audit
**----- End of picture text -----**
## **Total number of volunteer hours donated**
INSPECTORATE MICROVOLUNTEERS ANIMAL CENTRES* SUPPORT **2,230 20,635 4,020**
* not complete data – reported by a limited number of volunteers across 16 sites
## **Standout activities by role**
INSPECTORATE MICROVOLUNTEERING ANIMAL COLLECTIONS TASKS **2,159 4,556 Volunteers by role** ANIMAL CENTRE PRO BONO INSPECTORATE VOLUNTEER NUMBERS VOLUNTEER NUMBERS VOLUNTEER NUMBERS **1,985 56 298**
## **Volunteers by role**
## **Key features of 2022**
l The volunteering team structure was reviewed and redesigned. The business case for the new volunteer experience team was signed off by the RSPCA Board in December 2022.
l The emerging cost-of-living crisis and fuel crisis (March 2022) became of increasing concern to the volunteering team and was monitored closely.
l Volunteers Week 1–7 June 2022 was a highlight of the year with content shared across internal and external platforms including Instagram quizzes, a video from a veterinary nurse student and a ‘team talk’ from one of our specialist seal rehab volunteers.
l We carried out an audit of inactive microvolunteers in the last quarter who had not completed a task in the previous 12 weeks. Following a full review and an opportunity for volunteers to re-engage with the RSPCA, 3,873 volunteers were removed, hence the drop in overall volunteer numbers in the final quarter of 2022.
**20 TRUSTEES’ REPORT AND ACCOUNTS 2022**
**The RSPCA Chiltern Branch’s volunteers help animals in the local areas of Aylesbury, Buckingham and Dacorum.**
**TRUSTEES’ REPORT AND ACCOUNTS 2022**
**21**
## **OUR ORGANISATIONAL WORK IN 2022**
**----- Start of picture text -----**
Strategic objectives Staff working at the RSPCA’s control
centre in Rotherham.
We recruit, develop and
support a diverse and talented
team of RSPCA employees.
We ensure financial sustainability
and robust stewardship of our assets.
We find innovative, efficient
technical solutions to the
challenges we face.
We base our decision-making
on interrogations of our
organisational performance.
We have strong, effective
governance backed up by
in-house legal support.
Organisational effectiveness
**----- End of picture text -----**
## **People and culture**
|**WE SAID WE’D…**|**…AND WE DID IT BY…**|**THE IMPACT ON ANIMALS**|
|---|---|---|
|✚ improve our equity,
diversity and inclusion
(ED&I) record|✚ creating and appointing our frst head of
ED&I role
✚ becoming a Disability Committed employer
✚ running a successful Pride event
✚ doubling our number of black and minority
ethnic (BAME) Inspectorate ofcers
✚ signing up to the Age Positive Pledge|✚ We can improve the public’s attitudes and
actions towards animals and better serve the
communities in which we operate by truly
being part of them|
|✚ develop leadership and
management opportunities|✚ engaging frst-line managers in a Lead First
leadership and development programme
(shortlisted for a national training award), with
81 percent taking part
✚ introducing apprenticeship programmes
for managers|✚ With a 100 percent skills increase reported
so far, teams are better managed and supported
to do the best they can for animals
✚ Employee relations cases dropped from 13
in 2021 to three in 2022, suggesting better
management, which ultimately makes teams
more efective for animals|
|✚ develop a fair reward
and pay system|✚ introducing a tool whereby employees can
publicly recognise colleagues’ contributions to
our values
✚ negotiating a new pay and progression
framework with Unite the Union
✚ moving the RSPCA pension scheme to a
new provider|✚ An open, transparent pay framework and
recognition of performance motivates our
people to achieve as much as they can for
animal welfare
✚ Safe, secure pension arrangements encourage
loyalty and long-term commitment to our
animal welfare goals|
**22 TRUSTEES’ REPORT AND ACCOUNTS 2022**
**----- Start of picture text -----**
✚ begin implementing our ✚ introducing mental health training for inspectors ✚ Helping our people feel more able to open
wellbeing strategy ✚ initiating new procedures around firearms up about any mental health issues means we
and the use of drugs when inspectors sadly can offer them the support they need to do
have to euthanase animals their vital and often very challenging work
**----- End of picture text -----**
||**People and culture**|**People and culture**|**People and culture**|
|---|---|---|---|
|||||
||**KEY PEOPLE DATA:**|**2022**|**2021**|
||Headcount|_(at 31 December 2022)_
Total – 1,554 workers
1,440 employees (92.5%)
61 casuals (4.0%)
53 contractors (3.5%)
3.4% declaring a disability|_(at 31 December 2021)_
Total 1,505 workers
1,404 employees (93%)
54 casuals (4%)
47 contractors (3%)
2.81% declaring a disability|
||Employee turnover|_(January–December 2022)_
Voluntary (permanent employees only): 13.8%
(which compares favourably to the UK third
sector average of 19.4% in 2021)*
Overall turnover: 14.0%
Voluntary (permanent and fxed-term
employees): 15.5%
Overall turnover: 15.7%|_(January–December 2021)_
Voluntary (permanent employees only): 11.48%
(which compares favourably to the UK third
sector average of 16% in 2020)*
Overall turnover: 11.62%
Voluntary (permanent and fxed-term
employees): 13.05%
Overall turnover: 13.19%|
||Average days lost to sickness|_(12 months to 31 December 2022)_
9.27 days (the median number of sick days
taken per employee in the UK third sector in
2021 was 8.3)*
Average employee headcount for 2022 was
1,593 including casuals|_(12 months to 31 December 2021)_
9.16 days (the median number of sick days
taken per employee in the UK third sector in
2020 was 9.1)*
Average employee headcount for 2021 was
1,465 including casuals|
||Gender split as identifed
by the employee|_(at 31 December 2022)_
Female: 62.7%
Male: 23.3%
Transgender: <1%
Prefer not to say: 2.4%
Blank response: 11.5%|_(at 31 December 2021)_
Female: 59.5%
Male: 24.5%
Transgender: <1%
Prefer not to say: 3%
Blank response: 12%|
||Ethnic origin|_(at 31 December 2022)_
English/Welsh/Scottish/Northern Irish/British: 82%
BAME: 1%
Other: 2%
Prefer not to say: 3%
Blank response: 12%|_(at 31 December 2021)_
English/Welsh/Scottish/Northern Irish/British: 81%
BAME: 2%
Other: 3%
Prefer not to say: 3%
Blank response: 11%|
||LGBTQ+|_(at 31 December 2022)_
Bisexual: 1.91%
Gay man: 1.58%
Gay woman/lesbian: 2.44%|_(at 31 December 2021)_
Bisexual: 1.31%
Gay man: 1.59%
Gay woman/lesbian: 2.48%|
*Source Agenda Consulting
**TRUSTEES’ REPORT AND ACCOUNTS 2022 23**
## **Chief executive’s remuneration**
The chief executive’s remuneration was benchmarked and reviewed in May 2022.
The RSPCA chief executive is paid a total cash payment (including base pay and car allowance) of £162,217. This is at the median of the range for chief executives of charities of a similar size, according to data collected from Top Charities XPert HR and All Charity Survey data.
## **Executive pay**
The remuneration for any members of our senior management team must be approved in advance of a formal offer being made by the chief executive and the director of people and culture, or by the chair of trustees in respect of the remuneration of the chief executive. Consideration is given to pay data provided by the head of reward. This will normally include salary benchmark information, internal relativities and the pay band and job family information.
**In 2022, the RSPCA and its branches took in 21,902 cats.**
**24 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Gender pay gap**
Our mean gender pay gap is 13.8 percent, a reduction of 1.5 percent on 2021’s figure. The median gender pay gap has remained fairly static at 18.2 percent (against 17.9 percent in 2021). The mean gap reduction indicates a gender pay disparity reduction across the organisation as a whole. The larger median gap reflects our entry-level roles being filled predominantly by women, a situation seen in other animal welfare charities. We are developing an action plan to address this and hope to see a slight decrease in both our mean and median pay gap by 2024.
## **Pay progression**
During 2019/2020, we removed our previous incremental pay framework and moved to an affordable, transparent and market-based pay range approach. In 2020, we committed to working with Unite the Union to resolve any pay anomalies arising from this change. After constructive and collaborative discussions and a member ballot, we put a new pay framework in place and made an investment to rectify anomalies.
## **Financial sustainability**
|**WE SAID WE’D…**|**…AND WE DID IT BY…**|**THE IMPACT ON ANIMALS**|
|---|---|---|
|✚ grow and diversify our
income streams|✚ approving a plan to grow our engagement
and income generation over the next
three years|✚ As a strong and sustainable organisation,
we’ll continue to support the animals most
in need|
|✚ continue to invest in our
strategy and the 10 work
streams in our strategic
transformation programme|✚ appointing an assistant director for
transformation and streaming our transformation
work into four programmes
✚ delivering critical foundational aspects of
our digital programme
✚ broadening our Animal Journey programme
to focus on providing an end-to-end service
that puts animal welfare frst
✚ defning a 3-Tier prevention approach
✚ initiating our brand programme
✚ completing our management information
programme|✚ We will continue to evolve our organisation
to be more fexible, efcient and efective,
enabling us to help more animals who need us|
|✚ sell our former head ofce
building at Southwater|✚ completing the sale and committing to
hybrid working on a long-term basis for most
ofce-based staf|✚ Hybrid working means we can attract and
retain dedicated and talented people who want
to contribute to animal welfare, wherever they
are based and whatever their circumstances|
|✚ change our procurement
approach to deliver
increased value|✚ reviewing our strategy and completing a
roadmap to strengthen our commercial activity
and relationships with key suppliers|✚Securing better value from our suppliers
will ensure we maximise our work’s impact on
animal welfare|
**TRUSTEES’ REPORT AND ACCOUNTS 2022 25**
## **Technology**
|**WE SAID WE’D…**|**…AND WE DID IT BY…**|**THE IMPACT ON ANIMALS**|
|---|---|---|
|✚ move to cloud-based
solutions|✚ launching a digital transformation programme
✚ establishing more than 100 servers in the cloud
✚ modernising our website and moving it to
the cloud|✚ Our teams can work more efectively and
reach more animals through reliable and more
user-friendly technology|
|✚ provide key IT equipment
for our Inspectorate
and renew essential
communications equipment|✚ completely replacing devices critical to
investigative and rescue work|✚ Animals in need are reached and rescued
from harm more quickly and efciently|
|✚ monitor and
coordinate our technology
change activity|✚ coordination through a digital
advisory board
✚ implementing a project-planning tool
✚ establishing super users and change
champions to ensure new technology is
embraced by the whole organisation|✚ Beneft to animals is at the heart of each
part of our strategy – the project-planning
tool helps us check we are on track to deliver
benefts with each project and helps us reduce
both cost and risk in major change activities|
## **Governance and leadership**
|**WE SAID WE’D…**|**…AND WE DID IT BY…**|**THE IMPACT ON ANIMALS**|
|---|---|---|
|✚ launch an internal
governance review|✚ reviewing our approach to risk
management and compliance, and developing
our policy framework and support for our
board and committees|✚ With improved efciency and decision-making
at all levels we can be sure the whole of our
organisation is focused on improving the lives
of animals in line with our strategy|
|✚ prepare for external
benchmarking of our
governance against the highest
charity governance and leadership
standards, including the
Charity Governance Code|✚ beginning project work to do this|✚ Continued good, efective monitoring of
our governance ensures our efciency as an
organisation and our ability to efect the changes
for animal welfare set out in our strategy|
## **Branch network**
|**WE SAID WE’D…**|**…AND WE DID IT BY…**|**THE IMPACT ON ANIMALS**|
|---|---|---|
|✚ improve support and
communication among and
with branches|✚ holding regular interactive briefng sessions,
all of which were attended by more than
two-thirds of our branches|✚ Animals in our branches’ care beneft from
the use of shared approaches to animal welfare
and governance|
|✚ strengthen the network
and its relationship with the
National Society|✚ agreeing to a new governance framework
for a modern, equitable partnership
✚ introducing formal guidance for temporary
trustees|✚ Branches will deliver impactful animal welfare
and cruelty prevention in local communities
sustainably and efciently by working together
✚ Branches that may have been through
difcult times will be guided back to stability
by well-trained, capable temporary trustees,
so that they can continue protecting animals
in their communities|
|✚ begin implementing our
action plan for branch resources|✚ developing a centralised, searchable resource
and networking platform|✚ Branches are supported to deliver best
practice in animal welfare|
**26 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## The year ahead
As we move into year three of our strategy, with our eight bold ambitions in mind (see page 8), all our preparation and decisionmaking over the last few years have put us in a strong position to meet the challenges and make the most of the opportunities ahead. Every year, we examine what has gone well and what has not gone so well, and our three-year business planning process means we can review our activity and prioritise our resources. We review and learn lessons from key projects and programmes too.
**Owner Ron Stanley feeding the sheep**
**on his RSPCA Assured farm Pentwyncoch Isaf in South Wales.**
**TRUSTEES’ REPORT AND ACCOUNTS 2022 27**
## **Below is a summary of what we will do in our priority areas over the next two years.**
## **RESCUE AND CARE**
We face a looming animal welfare crisis due to:
l an increase in the cost of living, leaving many owners struggling to look after their animals
l increased pet ownership during the pandemic leading to more abandonments now
l a shortage of veterinary provision across the industry
l not enough capacity at our animal centres to meet increased demand.
## **IN 2023, WE WILL…**
l Roll out Animal Voice – our science-informed tool to assess and measure animal welfare – to more species.
l Make the most of our resources and help the animals most in need by trialling new triage services.
l Lead a joined-up, cross-sector response to the crisis.
l Help caring owners keep their animals and reduce demand on our services by providing effective advice and support.
l Build capacity for those animals who do have to be taken into our care.
## **FROM 2023 TO 2025, WE WILL…**
l Review our role and the ways in which we can best help animals through our Animal Journey programme.
l Ensure animals get the care they need, when they need it, from the organisations that are best able to help them.
## **ADVOCACY**
We aim to maximise our impact on animal welfare by continuing our work to become a thought leader, ensuring our arguments are included in wider debates.
## **IN 2023, WE WILL…**
l Launch three thematic campaigns showing how animal welfare interconnects with other issues.
l Review our farm animal welfare assurance scheme, RSPCA Assured, to ensure it can meet our strategic indicator of half of UK farm animals being reared under RSPCA welfare standards by 2030.
l Improve the way the public cares for and protects wildlife through new initiatives.
l Increase our calls to phase out the use of animals in research and reduce the number of experiments that cause them severe suffering.
## **FROM 2023 TO 2025, WE WILL…**
l Continue growing our animal welfare movement by reforming and increasing our public campaigning.
l Encourage people to eat less, eat better and to choose higher-welfare foods.
l Move towards a phase-out of greyhound racing and discourage poor breeding in brachycephalic (short-nosed/ flat-faced) animals by leading debates on human behaviour relating to companion animals and those used in sports.
## **ANIMAL WELFARE IMPACTS**
## **ANIMAL WELFARE IMPACTS**
l Animals will get the help they need, more quickly.
l More animals will be able to stay with their owners in loving homes.
l We will be better able to take those animals most in need into our care.
l The public and politicians will be more conscious of animal welfare and the impact human actions can have on it.
l More farm animals will be raised to RSPCA welfare standards.
l Fewer animals will suffer in laboratories.
l Fewer animals will be bred for their looks over their welfare.
**----- Start of picture text -----**
RSPCA Chief Executive Chris Sherwood
visiting RSPCA Felledge Animal
and Equine Centre.
**----- End of picture text -----**
**28 TRUSTEES’ REPORT AND ACCOUNTS 2022**
**----- Start of picture text -----**
Eight cats arriving at RSPCA
Brighton Animal Centre after
being transferred from
RSPCA Birmingham Animal Centre.
**----- End of picture text -----**
## **PREVENTION**
As it says in our name, the prevention of cruelty to animals is fundamental to the RSPCA. We have developed a new 3-Tier approach to drive this work forward in line with our strategy.
**1.** We want to **inspire and engage** every member of the public – not just RSPCA supporters – to understand the small steps they can take in their lives to promote positive treatment of animals.
**2.** We want vulnerable communities to get **early help and support** to prevent cruelty and neglect, and we want to help struggling, caring owners to keep their pets through difficult times.
**3.** Where cruelty or neglect have occurred, we want to **intervene to prevent** them happening again, by providing education, advice and support to individuals, groups and specific stakeholder groups.
## **IN 2023, WE WILL…**
l Embed ownership of our new 3-Tier approach to prevention within our executive leadership team and across the organisation.
l Develop ways of working and awareness of prevention messaging internally, in preparation for building our reach and impact in relation to Tier 1 prevention (inspire and engage).
l Pilot more strategic collaborations with external partners who have complementary expertise, to grow our Tier 2 capacity (early help and support).
l Consider human behaviour change alongside animal welfare outcomes while delivering Tier 3 (intervene and resolve).
## **FROM 2023 TO 2025, WE WILL…**
Build our organisational infrastructure, mindset and ways of working to deliver a dramatic impact in preventing cruelty to animals.
To make this happen we will:
l target the whole population, not just those individuals or communities where there is a problem or those who already support the RSPCA
l build an evidence base of what works in promoting animal welfare and preventing cruelty and neglect
l use evidence, data and insights so that we can be operationally strategic and proactive, rather than tactical and reactive.
## **ANIMAL WELFARE IMPACTS**
l Animals will benefit from the whole population having a better understanding of how they can prevent or reduce animal suffering and promote positive animal welfare.
l There will be fewer cases of unintended animal cruelty and neglect.
l After cruelty has happened, the people involved will be less likely to abuse or neglect animals again.
**TRUSTEES’ REPORT AND ACCOUNTS 2022 29**
**----- Start of picture text -----**
RSPCA runner
Rohit Anand passing
the 8.5-mile Great
North Run cheer point.
**----- End of picture text -----**
## **SUPPORTERS**
Our aim is to help as many animals in need as we can, by actively engaging with more of the people and communities we want to reach.
## **ORGANISATIONAL EFFECTIVENESS**
We are investing in our future by:
l improving our processes and systems through a digital transformation programme
l developing a one-team approach across the RSPCA
l focusing on our environmental, social and governance (ESG) work l strengthening our branch network
l focusing on equity, diversity and inclusion in our new people and culture plan
l focusing on health and safety compliance and culture.
## **IN 2023, WE WILL…**
l Improve our data protection practices with tailored training across the RSPCA.
l Roll out a new governance framework for our branches alongside refreshed rules.
l Ensure we meet policy and regulatory requirements by coordinating compliance and assurance activities and implementing new governance, risk and compliance frameworks.
l Publish an ESG policy outlining our sustainability and ESG reporting plans.
l Adopt a new digital ecosystem to support our Animal Journey programme.
l Make our website more user-friendly and personalised.
## **IN 2023, WE WILL…**
l Give volunteers ways to support us while also progressing their own development.
l Build a great culture of cross-team collaboration.
l Ensure a healthy, safe work environment for a diverse workforce.
l Reward people for their contributions.
l Begin an investment programme to grow voluntary income.
l Offer more relevant, attractive ways for a greater diversity of people to engage with us.
l Improve the way people see us and understand the impact of what we do.
## **FROM 2023 TO 2025, WE WILL…**
l Give our volunteers a positive experience of working with us, by aligning their contributions with our strategy.
l Help more animals by delivering shared goals with our operational partners and with our branches, and by showing them that we value them.
l Inspire people from all communities to support us with their time, money and voices and to unite around a clear understanding of what we stand for.
l Develop a more inclusive brand.
## **ANIMAL WELFARE IMPACTS**
l We can continue to improve animal welfare in the long term and deliver our strategy if we have more people who are truly representative of the public behind us and working alongside us.
## **FROM 2023 TO 2025, WE WILL…**
l Improve our data quality and analysis across the organisation. l Develop continuous, fast-moving improvement across our digital landscape.
l Pull together all the information across the RSPCA in two new knowledge-management systems (known as single view of the truth systems).
l Reduce our manual workload by reducing the digital complexity of our communications.
l Recruit, nurture and retain great people who connect deeply with our values and purpose.
l Focus on equity, diversity and inclusion in our recruitment. l Develop a risk-management culture throughout the organisation.
l Continue to deliver our ambitious change agenda through our four transformation programmes.
## **ANIMAL WELFARE IMPACTS**
l All of these improvements are about future-proofing and strengthening the RSPCA so that we can continue to deliver our vital work to improve millions of animals’ lives well into the future.
**30 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## Financial review
In 2022, the group consolidated the financial turnaround initiated in 2021. The table below provides a five-year summary of the consolidated Statement of Financial Activities (SOFA) and shows that we have significantly improved our financial position in the context of a difficult operating environment.
||**2022**
**£m**|2021
£m|2020
£m|2019
£m|2018
£m|
|---|---|---|---|---|---|
|Total income|**152.1**|151.8|116.5|130.7|142.0|
|Net (expenditure)/
income (*)|**15.8**|44.4|(24.5)|(8.1)|(23.7)|
|Net movement
in funds|**14.1**|70.5|(28.8)|(17.2)|(5.7)|
(*) total net income defined as income after expenditure and the net gains/losses on investments
## **The Statement of Financial Activities**
The group surplus generated in 2022 reflects the strengthening of the financial health of the organisation. It can be explained by a number of different factors.
- l It was another solid year for legacy income, with high-value notifications and progress towards the resolution of the delays at the Probate Registry. Consolidated income totalled £152.1 million (2021: £151.8 million).
- l The RSPCA benefited from £7.6 million gains on disposal of property assets, including our former head office at Southwater, West Sussex.
- l Expenditure on charitable activities across the group increased to £104.4 million (2021: £93.2 million), a planned increase as we return to higher levels of activity following the pandemic years.
- l A loss on investments of £9.6 million (£8.0 million gain in 2021) reduced the operating surplus, but still left the organisation with a positive net movement in funds.
- l An actuarial loss on the pension scheme of £1.7 million compared to a gain in 2021 of £26.1 million.
Funds in the group increased by £14.1 million (2021: increase of £70.5 million), while funds in the charity increased by £13 million (2021: increase of £69.8 million).
The RSPCA-only surplus post-actuarial loss for the year, as reported in the charity Statement of Financial Activities, was £13.0 million (2021: surplus £69.8 million).
## **The balance sheet**
Overall the group’s total funds for the year were £274.5 million (2021: £260.5 million).
Fixed assets reduced marginally by £0.2 million. The £17.5 million reduction in tangible fixed assets from disposal of former animal centres, the former head office building at Southwater, and pensioner and shared equity properties was offset by an increase in investments of £17.6 million.
Current assets increased by £13.0 million shared equally between cash and debtors. Cash balances have been boosted by positive net operating results and strong legacy cash income, while the debtor balance increases are primarily driven by higher legacy income accruals. Short-term creditors reduced marginally, by £1.0 million, mostly due to improvements in processing operations.
As a result, net current assets increased by £14.0 million year on year.
The group’s cash flows were atypical in 2022 with strong cash inflows in the first half of the year from the sale of property assets. Overall the group’s cash position increased by £7.4 million to £30.8 million at the end of 2022.
## **Future performance**
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 excellent result in 2022 will allow us to designate further funds to support the delivery of our ambitious strategy; to grow income, modernise the organisation and maximise the impact for animal welfare.
Looking ahead, we continue to monitor the tragic events in Ukraine and their knock-on impact on the global economy. The predicted recession in the UK may adversely impact income generation.
The cost-of-living crisis fuelled by inflationary pressures and high energy prices is likely to affect donation income as people necessarily restrict their outgoings. It is also impacting our own costs and those of anyone managing or caring for animals. Our ‘perfect storm’ plan in the shorter term, and the mediumto-long-term planned investment in growing engagement and income generation respond to those risks.
Market volatility has impacted our investments in 2022 and the trend is likely to continue in the foreseeable future. We are working with our advisers to consider whether we need to make any changes to our investment strategy as a result.
We are confident that, despite these challenges, we will continue to provide our critical services for animals in need.
**TRUSTEES’ REPORT AND ACCOUNTS 2022 31**
**----- Start of picture text -----**
Ben Harrott was the overall winner of the
2022 RSPCA Young Photographer Awards, seen
here with RSPCA President Chris Packham.
**----- End of picture text -----**
Unrestricted reserves are funds that are expendable at the discretion of the trustees in furtherance of the charity’s objects. They are made up of:
## l **Designated funds (£141.4m)**
A permanent designated fund is matched to fixed assets, as this cannot be quickly utilised to realise cash in the event this is required. The part of the general fund represented by fixed assets is therefore excluded from the free reserves calculation, as generally a charity could not dispose of all or the majority of these assets and continue its operations as a going concern.
Designated funds are also set aside for approved capital expenditure and investment in strategic projects such as the medium-to-long-term investment in engagement and income generation and the organisational transformation programme (see Note 18 for details).
As at 31 December 2022, the balance of designated funds was £141.4 million (2021: £142.4m).
## **Pension arrangements**
The RSPCA operates a pension arrangement that 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. The trustees have responsibility for obtaining valuations of the fund, administering benefit payments and investing the Scheme’s assets. The trustees delegate some of these functions to their professional advisers where appropriate.
Based on FRS 102, the financial reporting standard in the UK, the amount by which the liabilities exceed the assets of the defined benefit section of the pension scheme decreased by £0.3 million in 2022 to £10.8 million (2021: £11.1 million). The small improvement in scheme funding is mostly due to significant improvement from the change in financial actuarial assumptions partly offset by substantial losses on the Scheme’s assets.
Since 2021, and following a strategic review of pension arrangements, the defined contribution (DC) pension provision offered by the charity is through a master trust arrangement with Legal & General.
## **Reserves**
The RSPCA holds two types of reserve – restricted and unrestricted. The group reserves additionally include restricted and unrestricted reserves held in the subsidiary companies.
Restricted reserves are 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 2022, the balance of restricted reserves within the charity was £19.5 million (2021: £20.4 million).
## l **General funds (£121.0m)**
Free reserves are calculated as total funds, less restricted reserves and designated funds. This definition takes full account of the pension liability.
The pension reserve represents the pension liability recorded in the consolidated and charity balance sheet and is calculated annually for accounting purposes under FRS 102. This liability does not result in any immediate requirement to pay this amount to the pension scheme, and ongoing cash contributions into the Scheme are met through budgeted income, so there is no requirement to ring-fence an amount equal to the full deficit from other reserves to cover this liability.
The Board reviewed the reserves policy during the year and free reserves will continue to 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 target levels have been agreed:
- l a working capital reserve of between £10 million and £20 million
- l a reserve to protect against falls in legacy income of £10 million
- l a continuity reserve of £65 million
- l a total free reserve of between £85 million and £95 million.
**32 TRUSTEES’ REPORT AND ACCOUNTS 2022**
Designated funds to support the long-term strategic investment in the organisation have been reviewed as follows.
l It was agreed that the £30 million contingency fund against market fluctuations would be re-designated for initiatives underpinning the long-term sustainability of the RSPCA. This is broken down into £15 million to support the organisational transformation programme and a new £15 million fund to upgrade our estate of clinics, hospitals, animal, wildlife and equine centres. Both programmes are expected to span over the next five years.
l A further £5 million will also be designated for the investment in growing our income over the next three years and two new designated funds were also created – a £10 million fund to support branches, through a match-funded development opportunity, and a £5 million fund to finance our ‘perfect storm’ response (for example contributions to food bank schemes and increase in boarding and rehoming capacity) to a combination of external factors, including an increase in abandonment of animals, shortage of veterinary provision and cost increases, and internal challenges, which together are creating a very real animal welfare crisis.
The new allocation is summarised in the table below.
||**31 December**
**2022**
**£m**
31 December
2021
£m|
|---|---|
|Transformation programme
Engagement and income generation|**30**
15
**25**
20|
|Improvements of our estate of
clinics, hospitals, animal, wildlife and|**15**
–|
|equine centres||
|Branch development fund|**10**
–|
|Perfect storm programme|**5**
–|
|Funds to support transfer to PDSA|**1**
–|
|Contingency fund against market
fuctuations|**–**
30|
|Total designated funds to support
the long-term strategic investment|**86**
65|
The Board reviews this policy annually.
At 31 December 2022, the charity’s free reserves stood at £110.2 million (2021: £95.3 million), which is slightly above the top end of our target range. Given the current economic uncertainty and long-term nature of the RSPCA’s transformation journey, we believe this is the more prudent approach at this stage.
**----- Start of picture text -----**
Young puppy Reggie was found in a rucksack
abandoned in woods. Here he’s back visiting RSPCA
Millbrook Animal Centre with his new owner.
**----- End of picture text -----**
## **Investments**
The RSPCA holds investments to support fluctuations in its cash flow, to fund structural growth and as a continuity reserve. The value of the RSPCA’s investments at 31 December 2022 was £133.4 million (2021: £115.2 million). Net losses of £9.6 million are reported in the group Statement of Financial Activity (SOFA) for 2022 (2021: gains of £8.0 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 investment professionals to help maximise the overall return within acceptable risk parameters, while ensuring that the strategy remains fit for purpose.
## **Investment strategy review**
Thanks to strong performance and the sale of property assets in 2022, it was possible to invest an additional £25 million in the portfolio in July 2022.
## **Market overview**
A number of ongoing pressures were applied to stock markets in 2022.
- l Concerns surrounding the Russian invasion of Ukraine exacerbated inflationary pressures.
- l European stocks suffered inflationary pressures, which were at the forefront of policy decision-making, heightened by geopolitical risks resulting in a sharp rise in the price of oil and gas.
- l The Asian stock market had a difficult year driven by the Omicron variant, which spread largely unmitigated across
**TRUSTEES’ REPORT AND ACCOUNTS 2022 33**
**A One Fun Day and Dog Show event at RSPCA Millbrook Animal Centre.**
China, sparking concerns of a new wave of infections as tourism and travelling recommenced.
- l Central banks around the world have had to balance the pressure of inflation with an already slowing growth rate, maintaining an aggressive stance throughout the year.
- l Growth stocks have been under pressure from rising yields and have underperformed their economically linked value peers, reversing a trend that has been seen for the last decade.
In the fourth quarter, markets rounded off a tumultuous 2022 with gains. Boosted by China’s relaxation of its zero-COVID policy, Asian shares rose, while European equities also advanced strongly. Positive returns were seen across a range of sectors, particularly economically sensitive areas, such as energy, financials, industrials and consumer discretionary. Other parts of the market, such as consumer staples, lagged behind.
There are signs that inflation is starting to slow down in 2023, but we must still contend with the slowdown that results from the steep rises in interest rates we have seen over the past year. If inflation cools quickly, this slowdown could be relatively shallow and short-lived, as central banks signal a willingness to cut interest rates to support growth in the second half of 2023.
However, the path of inflation remains far from certain and markets could become more volatile if it becomes apparent that interest rates will need to rise higher – or stay high for longer – than is currently anticipated.
Russia’s bombardment of Ukrainian cities indicates that there is little prospect of a de-escalation of the conflict in the near future. Aside from the humanitarian cost, this will have global
economic implications as the world grapples with continued uncertainty over energy and agricultural supplies.
High levels of inflation and geopolitical uncertainty have made meeting inflation plus return targets more challenging in the shorter term, but we remain confident in our ability to meet targets over the longer term.
## **Fund performance**
The portfolio achieved a return of -6.1% in the 12 months to 31 December 2022 (+11.2% in 2021), compared to the return target (CPI+4.0%) of 14.6%. Over the past five years the portfolio has returned an annualised 2.7% p.a. The ARC PCI 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 was -8.8% over the previous 12 months and 1.7% over a five-year annualised basis. Therefore our portfolio has outperformed its benchmark over the last 12 months and the last five years on an annualised basis.
## **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 review our existing policies on an ongoing basis and look to enhance them where possible.
**34 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## 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 charity 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 including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland – United Kingdom Generally Accepted Accounting Practice). 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 observe the methods and principles in the Charities SORP
- 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 people**
The RSPCA is committed to recruiting, developing and supporting a diverse and talented team of employees and volunteers who reflect the diversity across the communities in which we operate.
We are developing a seven-year equity, diversity and inclusion (ED&I) plan, which will interweave with our people plan and allow us to ensure our work benefits from the contributions, reach and insights of a true cross-section of society. It will set out the case for why ED&I is important to animal welfare. We aim to use the insights acquired from our LGBTQ+ inclusion work to reach out to more ethnically diverse groups, with whom we have historically failed to connect. Ahead of the official launch of that plan we have started to look at how we can diversify our recruitment, celebrate the diversity we have in the organisation already and inform and educate our staff, volunteers and branches on different cultures.
**----- Start of picture text -----**
Building bird nesting boxes in the wood
workshop at RSPCA Newbrook Farmhouse
Education Centre in Birmingham.
**----- End of picture text -----**
**TRUSTEES’ REPORT AND ACCOUNTS 2022 35**
## **Our ED&I vision statement**
The RSPCA will be a diverse, inclusive and supportive place to work and volunteer that promotes the importance of people from all communities being themselves as they work together to deliver our strategic ambition. We will actively collaborate with existing and new customers from diverse communities and our partners to create a world where animals are respected and treated with kindness and compassion.
As part of developing our culture we will be introducing a new engagement platform, MyView, which will provide invaluable insights into how our staff and volunteers are feeling. Developing continuous listening will help us be a great place to work and volunteer. By the end of 2022, we had chosen a provider for this.
Through effective engagement and by listening to staff working in our support functions, we took the decision to move to hybrid working on a more permanent basis. With the introduction of more flexible working policies this move will help us recruit and retain the best talent.
We have significantly invested in wellbeing and launched our wellbeing strategy in 2022. The wellbeing strategy has so far led us to:
- l expand Trauma Risk Management (TRiM) within the RSPCA
- l enhance our employee assistance package
- l introduce a new occupational health provider
- l set out mental health training for managers and inspectors
- l introduce a panel to support the removal and reinstatement of firearms/drugs used when inspectors sadly have to euthanase animals.
We are improving the wellbeing and safety of those who work and volunteer with us. There is a structured three-year plan to remove known risks and we have brought in expertise to help identify and reduce our levels of risk. The MyView platform will play a key role in this.
We will be training managers and leaders to the Institution of Occupational Safety and Health standards and we are providing updates on managing risk to the RSPCA Board.
## **RSPCA branches**
At the end of 2022 there were 140 separately registered RSPCA branches managed by their own locally elected charity trustees and run by volunteers, subject to rules made by the RSPCA. The finances of partner branches are not consolidated into the RSPCA’s financial statements and therefore each branch is responsible for publishing its own annual trustees’ report and accounts.
The RSPCA Acts, the national charity’s rules and the branch rules regulate the relationship between the RSPCA 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.
The Branch Affairs Committee comprises three trustees with one of them acting as chair and 10 regional chairs elected from the 10 regions.
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 RSPCA branches in delivering animal welfare aims and strategy, and provides direct and indirect support to the branches when required.
## **Grants policy**
The RSPCA provides various grants to our network of branches, including a share of the door-to-door fundraising activities that we undertake in the form of a grant on an annual basis and grants for neutering.
Our international department administers grants from the restricted Overseas Fund to project partners abroad, in most instances within the scope of planned collaboration in joint activity such as training events, workshops or conferences, or in advocacy or the development of animal welfare policy or standards. In the case of disasters and other emergencies, grants may also be awarded to organisations working on the ground in affected areas for direct animal rescue, treatment and care. Recipient organisations agree to a set of conditions within which any given award must be spent.
## **The RSPCA Board of Trustees**
The Board of Trustees has a maximum of nine elected members plus up to three co-opted members who, as charity trustees, have the legal responsibility for the effective use of the charity’s resources in accordance with the objects of the RSPCA and for providing effective leadership and direction. Trustees serve for a term of three years but are eligible for re-appointment subject to term limits specified in the RSPCA rules.
**36 TRUSTEES’ REPORT AND ACCOUNTS 2022**
Nine members of the Board are elected by the membership of the RSPCA. All candidates for election to the Board must have been members of the RSPCA for not less than 12 months immediately preceding nomination. The Board can appoint up to three people who possess special qualifications or experience as co-opted trustees.
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 2022 together with other statutory information is given on page 79 and forms part of this report.
The RSPCA 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 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, an Investment Committee, an Animal Welfare Committee, a Governance and Nomination Committee and the Branch Affairs Committee.
These committees determine, monitor and evaluate the RSPCA’s strategic direction and performance as delegated by the Board. In addition, a Remuneration Committee has been established to review the chief executive’s remuneration each year. A summary of each committee’s terms of reference is given here.
## **Finance, Audit and Risk Committee**
The Finance, Audit and Risk Committee (FARCOM) helps the Board effectively and sustainably deliver on our strategy by safeguarding and ensuring the proper use of RSPCA assets, reserves and resources.
It has oversight of:
- l the annual _Trustees’ report and accounts_
- l budgeting and financial reporting
- l external audit
- l risk management
- l land and property management
- l income generation
- l people and culture
- l the transformation programme.
FARCOM reviews its terms of reference and its own effectiveness annually, recommending necessary changes to the Board. It is chaired by the treasurer and is formed of annually appointed trustees and independent co-opted members, who add specialist skills or experience. Members are offered ongoing training and support to ensure their skills and knowledge are up to date. Meetings are usually attended by the directors of finance and business services, strategy and transformation, engagement and income generation and people and culture.
## **Investment Committee**
This committee has strategic oversight and direction of the RSPCA’s investment assets. The investment portfolio is divided into three sections:
- l short-term reserves
- l a medium-term income reserve
- l a long-term continuity reserve.
The Investment Committee undertakes the long-term stewardship of these important assets in order to further the RSPCA’s aims.
In particular, it determines, implements and reviews an investment strategy and establishes a detailed statement of investment principles and policies, which sets out:
- l the investment objectives
- l risk tolerance
- l liquidity requirements
- l time horizon
- l an ethical and responsible investment policy
- l operational arrangements for implementation, monitoring and reporting.
The committee consists of the treasurer (chair), at least one other trustee and up to two co-opted members with relevant expertise. Members are selected using a skills assessment and offered ongoing training and support.
**TRUSTEES’ REPORT AND ACCOUNTS 2022 37**
**----- Start of picture text -----**
Veterinary nurses prepare a dog for surgery
in the Bristol Animal Rescue Centre clinic.
**----- End of picture text -----**
_Animal care and veterinary services_
- l Monitoring the effectiveness of the RSPCA licensing scheme for its animal establishments, including those run by branches
- l Advice to the Board on systemic issues affecting the quality of animal care and rehoming
- l Reviewing our strategy delivery via vet services
- l Oversight of regulatory compliance and recommendations of changes to the Board
_Prosecutions_
- l Monitoring the effectiveness of animal welfare prosecutions in the delivery of our strategy
- l Reviewing the prosecutions policy and recommending changes to the Board
## **Governance and Nomination Committee**
This independently chaired committee has the following tasks:
## **Animal Welfare Committee**
- l development of our governance policies and procedures
This committee has the following responsibilities and purposes.
_Advocacy, prevention and policy development_
- l Review of advocacy and prevention programmes in the annual corporate plan in line with the strategy
- l Recommendations to the Board on new strategies to advance advocacy and prevention aims
- l Regular reviews of animal welfare policies and recommendation of changes to the Board
_International_
- l Strategy reviews for international prevention work delivery
- l Monitoring of effective delivery of the strategy internationally
- l Determination of the uses of restricted funds overseas in line with the strategy
_RSPCA Assured_
- l Recommendations to the Board on significant amendments to the RSPCA’s farm animal welfare standards
- l Reviewing the relationship between the RSPCA and RSPCA Assured and its strategic achievements
## _Inspectorate_
- l Monitoring of Inspectorate and National Control Centre performance in line with the strategy
- l Annual reviews of the Inspectorate’s Special Operations Unit strategic objectives
- l oversight of trustees’ complaints and sanctions
- l arrangement of trustees’ skills audits
- l review of Board effectiveness
- l oversight of elected trustees’ recruitment and training.
It also assists the Board in having a clear, agreed and effective approach to equity, diversity and inclusion throughout the RSPCA and in its own practice.
The Governance and Nomination Committee (GNC) consists of three Board members and up to two independent co-opted members who bring relevant expertise. A chair is elected from the co-opted members and a vice-chair from the trustee members. The chief legal officer assists the GNC.
## **Branch Affairs Committee**
The Branch Affairs Committee (BAC) oversees branch governance and effective communication across the RSPCA network:
- l the National Society
- l RSPCA regional boards
- l RSPCA branches
- l affiliated charities.
Its purpose is to provide our branches with leadership, to represent their views and to promote harmonious working relationships within the network.
It consists of three trustees (including the chair of the committee) and 10 regional chairs elected from our 10 regions.
**38 TRUSTEES’ REPORT AND ACCOUNTS 2022**
There are five main areas of work.
- l Decision-making on branch matters
- l Consultation and information sharing, including advising the Board on branch matters and needs, and relationship management within the network
- l Mediation and facilitation of cooperation across the network
- l Communication of RSPCA strategy and best-practice charity governance across the network
- l Overseeing effective, sustainable network performance against Board priorities
All BAC activities must be accommodated within budgets agreed by the Board and must comply with the strategic direction set by the Board. The BAC reports to each Board meeting on activities and governance issues, providing a rigorous and transparent assessment of performance and effectiveness within the network.
The BAC chair sits on the Board and reports to each BAC meeting on the strategic direction set by the Board and any matters it wants to raise with the BAC.
## **Remuneration Committee**
This committee oversees, reviews and makes recommendations relating to the RSPCA chief executive’s remuneration. It has three skilled or experienced members, including the treasurer as chair, who are appointed annually. Employees cannot be members. Officers have authority for final decision-making.
When reviewing the chief executive’s salary annually, the committee takes into account:
- l market information on typical salaries for comparable chief executive roles, provided by HR professionals
- l the overall pay and reward strategy of the RSPCA
- l the total reward package, including annual leave allowance, pension, etc.
- l the outcome of an annual performance appraisal.
## **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 our emergency helpline at our National Control Centre
and responding to requests for help via our Inspectorate and animal rescue service.
## **Safeguarding**
Since the launch of our safeguarding policy, Google site (including a Google reporting form) and structure, safeguarding has become embedded across the RSPCA. There is a safeguarding structure consisting of leads and deputies from each directorate, all of whom have had training from the Social Care Institute for Excellence. This training was also delivered to trustees and executives, as well as to staff who may be required to offer safeguarding support to colleagues.
E-learning safeguarding training is mandated to all colleagues as part of their induction, to be renewed every two years. Inspectorate colleagues continue to receive regular additional safeguarding training from their safeguarding lead and deputy.
As a result the number of safeguarding concerns recorded by the RSPCA and subsequent follow-up actions taken – namely reporting to the appropriate authority – has increased.
The RSPCA has recently partnered with Safeguarding Associates for Excellence for a review of current safeguarding practices, with a view to further improving on our policies, process and structure. Recommendations from the audit will be reviewed by the RSPCA Executive Leadership Team prior to implementation.
## **Why the environment matters**
Our strategy is fostering collaboration to build a better world in which all animals have a chance at a good life. This requires understanding the risk that environmental degradation, climate change and biodiversity loss pose to our mission, and our contribution to these. The most vulnerable will be the most affected by these crises, making the environment a top priority on the RSPCA’s agenda.
To address this challenge we have appointed an environmental and sustainability manager and established five focus areas.
## l **Engaging colleagues and understanding our impact**
We opened the conversation with colleagues to gain insight into the issues important to them. We also began identifying the environmental impacts, issues, risks and opportunities across the organisation and reviewed our contribution (positive and negative) to the United Nations’ Sustainable Development Goals.
## l **Measuring performance**
We are collecting our environmental data and have started developing our carbon footprint to enable us to track our performance and support informed target setting.
**TRUSTEES’ REPORT AND ACCOUNTS 2022 39**
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RSPCA Assured Assessor
Barrie Gibson (left) and the
Barracks Farm owner with a herd
of five-month-old calves.
**----- End of picture text -----**
## l **Driving down emissions**
Our fleet is material to our carbon footprint; we are working to reduce emissions through increasing vehicle efficiency and changing technology.
## l **Regulatory compliance**
We gained a better understanding of regulatory requirements relevant to our operations to support proactive management of legal compliance and reduce risk.
## l **Better together**
Together we are stronger and able to go further and faster. We initiated an animal charity sustainability benchmarking group to share knowledge and drive performance improvement across peer organisations.
We have a lot to do, and in 2023 we plan to:
- l develop a phased approach to decarbonising our fleet
- l undertake a climate vulnerability assessment of our operations so we can understand and work to manage climate risks
- l establish environmental performance targets, including carbon reduction
- l further engage stakeholders to ensure our environmental policy and long-term plan prioritises the significant impacts, risks and opportunities important to them
- l develop a sustainability plan that allows us to continue our work while minimising negative impacts.
## **Risk management**
Our new risk management framework will continue to evolve
and be embedded. It will inform our decision making and ensure consideration of the risks attached to budget setting and our forward-planning process.
The Board of Trustees is responsible for identifying and managing the strategic and operational risks the RSPCA is exposed to, so that:
- l trustees can make informed decisions and take timely action
- l the RSPCA can make the most of opportunities and develop them with the confidence that any risks will be managed
- l forward and strategic planning can be improved
- l our aims can be successfully achieved.
The Finance, Audit and Risk Committee (FARCOM) supports the Board to carry out its risk-related governance responsibilities.
Key organisational risks are identified using the classifications set out in the Charity Commission guidance on risk management (CC26).
Risks are assessed and managed through strategic and operational risk registers, and the impact and likelihood of their occurrence are evaluated. Actions to mitigate the risks are detailed.
The Executive Leadership Team (ELT) takes responsibility for creating an environment where risks can be identified and escalated, and a culture that encourages transparency in reporting.
A risk action log (each assigned an owner) and a risk change log will be maintained so that FARCOM can:
- l effectively review progress in risk management
- l identify the emergence of any new risks
- l ensure risk-mitigating actions are being implemented.
We have identified the following as our biggest risks.
**40 TRUSTEES’ REPORT AND ACCOUNTS 2022**
||**RISK**|**MITIGATION**|
|---|---|---|
|**Governance**|Failure to comply with key internal and
external regulation exposes the RSPCA
to fnancial loss, reputational damage
and an inability to deliver our strategy.|Risk owners and functions are in place to own and manage risk
and compliance.
Policies, frameworks, tools, techniques and support are available
to enable risk management and compliance in the frst line.
Functions are in place to oversee and specialise in compliance
and the management of risk including data protection, health
and safety, data security, gambling and frearms. Monitoring is
performed locally by the subject matter experts.|
|**Operational risk**|Safeguarding policies and procedures
fail to identify and support the needs
of vulnerable adults and children within
the organisation and with whom it
comes into contact (staf, volunteers
and the public).|A comprehensive safeguarding policy is in place.
Training is provided to all staf with further in-depth training for
safeguarding leads.
A process of reporting serious incidents is in place and ensures
appropriate controls, measures and monitoring.|
||Lack of consistent, quality service could
result in poor animal welfare outcomes
for animals in our care.|Major incident procedure in place supported by a Business
Continuity Group.
Strong relationships with government agencies, e.g. Defra,
are in place to provide clear communications and support.
A complaints procedure is in place and monitored as part of
internal controls.|
||Failure of third-party suppliers to comply
with contractual obligations could result
in fnancial losses, reputational damage
and disruption to service delivery.|Signifcant resource and governance has been applied to our
contract with Capita and a plan of engagement has been agreed.
The procurement strategy and related policies are being
reviewed and internal controls are in place to ensure compliance
and best practice are embedded within our due diligence processes.|
|**Financial risk**|RSPCA lacks future fnancial stability
that might prevent the successful
delivery of the 2030 strategy.|Improved fnancial controls, reporting and analysis are in place
to enable informed decision making.
New and improved policies and procedures to support improved
performance and sustainability have been developed.
A three-year business planning approach is in place to provide
a budget-setting process and visibility of overall costs.|
|**Environmental and**
**external risks**|Risk of damage to our reputation and
public perception, which could result in
fnancial losses and a negative impact
on our ability to deliver our strategy.|An escalation process and feedback loop is in place to report
negative media and social media to service-delivery teams.
Reactive statements are prepared to deal with a variety of
potential reputational issues.
Potential negative stories are proactively sold into the media
to control negative publicity.|
|**Law and regulatory**
**compliance risk**|Risk of illness, injury or death of staf,
volunteers and the public through
breaches of health and safety law and/
or a lack of sufcient health and safety
practices or non-compliance.|An external health and safety review has taken place and an
action plan developed for the recommendations.
A revised health and safety policy was approved, which ensures
clear roles and responsibilities and provides clear expectations
and guidance.
Employee welfare and mental health awareness training for all
managers is in place.|
**TRUSTEES’ REPORT AND ACCOUNTS 2022 41**
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An animal care assistant gives
Princess an enrichment toy
at Bristol Animal Rescue Centre.
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## **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 that complies with the regulatory standards for fundraising and ensures our fundraising is delivered in a manner consistent with our values. We are registered with the Fundraising Regulator and adhere to the Code of Fundraising Practice. Any third-party agencies we use for the purpose of fundraising are contractually obliged to adhere to the relevant codes of practice. The fundraising that we enter into is through our events team, through legacies, trusts and philanthropists. The RSPCA lottery and the seasonal raffles we run are a high form of income for the RSPCA.
We adhere to a vulnerable persons policy and our frontline staff who work with the lottery also have training where they are shown how they may be able to identify vulnerable donors or gamblers.
We complete an annual complaints return for the Fundraising Regulator of fundraising complaints reported. Our latest return shows the RSPCA received 50 fundraising complaints in the last reporting period. The complaint numbers for the previous reporting period was 64. The reporting period for fundraising complaints was 31 March 2021 to 1 April 2022.
In 2022, out of a total of 79 incidents reported to the Data Protection (DP) team, two were in relation to RSPCA fundraising activities. In total DP recorded 29 actual breaches, which were independently investigated on a case-by-case basis from the time of our becoming aware of the breach. Our standard is to complete investigations within three to five days of receiving the breach notification; however investigations may extend beyond five days depending on the complexity of the incident.
One of the fundraising-related incidents was reported and investigated by the Information Commissioner’s Office (ICO), which resulted in an apology being sent to the individual involved and confirmation that their account had been suppressed and opted out of further communications. A confirmation and acknowledgement was sent to ICO.
In comparison to 2021, we have noticed a decrease in total breach incidents recorded (92 cases reported in 2021, versus 79 cases reported in 2022) as well as in actual breaches (49 in 2021, versus 29 in 2022).
## **Performance**
Our fundraising costs for 2022 were £22.3 million (2021: £22.2 million). Our income from fundraising, excluding legacies, decreased by £0.4 million in 2022 to £43.0 million (2021: £43.4 million). Our aim was to maintain our income as far as possible during the cost-of-living crisis by adapting and enhancing our fundraising offering, so that our supporters would have a valued and fulfilling experience and could have a positive impact on animal welfare, while building the fundraising team to ensure income sustainability to fund our services.
## **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 19.
RSPCA Trading Limited undertakes non-primary purpose trading and the profit from its activity is donated under a deed of covenant to the RSPCA at year end. In 2022, RSPCA Trading had an income of £1.4 million (2021: £1.2 million). Outgoing resources were £1.0 million (2021: £0.9 million) and £0.4 million of profit was donated to the RSPCA (2021: £0.3 million).
Freedom Food Limited, which trades as RSPCA Assured, promotes RSPCA-approved welfare standards in livestock farming. RSPCA Assured activities generated an income of £5.3 million (2021: £4.5 million) and incurred costs of £4.3 million (2021: £3.7 million) resulting in a net surplus of £1.0m (2021: £0.8m surplus).
**42 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## Summary financial report
**----- Start of picture text -----**
Other income
£4.6m (2021: £4.7m)
2022 Income
Investment income
Gain on disposal of fixed assets £2.8m (2021: £2.0m)
£7.6m (2021: £2.7m)
Furlough income and fees
Charitable activities
£0.3m (2021: £0.7m)
£8.0m (2021: £7.6m)
Contributions
and donations
£42.6m (2021: £43.2m)
Legacy income
£86.2m (2021: £90.9m)
Prosecutions/legal
£3.4m (2021: £2.6m)
2022 Expenditure
Science
Campaigns, communications and publications £1.5m (2021: £1.4m)
£4.5m (2021: £3.5m)
Education
Support to branches £1.2m (2021: £2.0m)
£7.3m (2021: £7.0m)
International
£0.6m (2021: £0.7m)
Cost of raising funds
£22.3m (2021: £22.2m)
Signed on behalf of the RSPCA Board
Field animal welfare
£85.9m (2021: £76.1m)
René Olivieri Karen Harley
Chairperson, Treasurer,
RSPCA Board of Trustees RSPCA
27 June 2023
**----- End of picture text -----**
**TRUSTEES’ REPORT AND ACCOUNTS 2022 43**
**Independent auditor’s report to the trustees of the RSPCA**
## **Opinion**
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 2022 which comprise the consolidated and charity Statement of Financial Activities, the consolidated and charity balance sheets, the consolidated cash flow statement, and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- l give a true and fair view of the state of the group’s and charity’s affairs as at 31 December 2022 and of their 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.
the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
- l the information given in the financial statements is inconsistent in any material respect with the _Trustees’ report_ ; or
- l sufficient 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.
## **Basis for opinion**
We have been appointed as auditors under section 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the 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’s or parent charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the _Trustees’ report and accounts_ other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the _Trustees’ report and accounts_ . Our opinion on the financial statements does not cover the other information and, 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
## **Responsibilities of trustees**
As explained more fully in the Statement of trustees’ responsibilities on page 35, 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 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 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**
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.
## **The extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.
**44 TRUSTEES’ REPORT AND ACCOUNTS 2022**
**The RSPCA South and South West Rope Rescue Team rescues a sheep that has become stuck on a cliffside in Devon. After several hours the team got the ewe to a higher point on the cliff and successfully caught her.**
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team:
- l obtained an understanding of the nature of the sector, including the legal and regulatory framework, that the group and parent charity operates in and how the group and parent charity is complying with the legal and regulatory framework;
- l inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
- l discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Charities Act 2011, the RSPCA Rules, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the _Trustees’ report_ , remaining alert to new or unusual transactions which may not be in accordance with the governing documents or requirements imposed by the Charity Commission and other regulators.
The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to the Animal Welfare Act 2006, data protection, health and safety legislation and employment law. We performed audit procedures to inquire of management and those charged with governance whether the group is in compliance with these law and regulations and inspected correspondence with regulatory authorities.
The group audit engagement team identified the risk of management override of controls and the completeness of income generated from donations, legacies, charitable activities, and other trading income as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates, performing specific audit procedures on legacies reflected within the legacy system but not the accounting records, reviewing the reconciliation between the donor system and accounting records, considering after-date receipts and minutes of meetings of those charged with governance to identify any instances of unrecognised income.
A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’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.
RSM UK Audit LLP Statutory Auditor Chartered Accountants 25 Farringdon Street, London EC4A 4AB 28 June 2023
RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
**TRUSTEES’ REPORT AND ACCOUNTS 2022 45**
## **Charity statement of financial activities**
Year ended 31 December 2022
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Unrestricted Restricted Endowment TOTAL Unrestricted Restricted Endowment TOTAL
funds funds funds 2022 funds funds funds 2021
Notes £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income and endowments from:
Donations and legacies 2a 124,413 4,844 – 129,257 130,381 3,884 – 134,265
Charitable activities 2b 2,772 113 – 2,885 3,109 – – 3,109
Other trading activities 2c 3,340 – – 3,340 3,661 – – 3,661
Investments 2d 2,567 189 7 2,763 1,793 80 112 1,985
Gains on disposal of tangible 2e 7,582 – – 7,582 2,698 – – 2,698
fixed assets
Other 2f 837 – – 837 1,096 – – 1,096
Total income 141,511 5,146 7 146,664 142,738 3,964 112 146,814
Expenditure on:
Charitable activities 3a 95,770 5,092 – 100,862 88,365 1,248 – 89,613
Raising funds 3b 21,507 – 19 21,526 21,582 – 16 21,598
Total expenditure 117,277 5,092 19 122,388 109,947 1,248 16 111,211
Net (losses)/gains on investments (8,803) – (827) (9,630) 6,712 – 1,330 8,042
Net income/(expenditure) 15,431 54 (839) 14,646 39,503 2,716 1,426 43,645
Transfers between funds 16 109 (109) – – – – – –
Other recognised gains:
Actuarial (loss)/gain on defined 25 (1,687) – – (1,687) 26,140 – – 26,140
benefit pension scheme
Net movement in funds 13,853 (55) (839) 12,959 65,643 2,716 1,426 69,785
Reconciliation of funds:
Fund balances brought forward
237,701 10,556 9,861 258,118 172,058 7,840 8,435 188,333
at 1 January:
Fund balances carried forward
251,554 10,501 9,022 271,077 237,701 10,556 9,861 258,118
at 31 December:
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All gains and losses recognised in the current and preceding financial year are included in the Statement of Financial Activities. The notes on pages 51 to 77 form part of these accounts.
**46 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Consolidated statement of financial activities**
Year ended 31 December 2022
**----- Start of picture text -----**
Unrestricted Restricted Endowment TOTAL Unrestricted Restricted Endowment TOTAL
funds funds funds 2022 funds funds funds 2021
Notes £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income and endowments from:
Donations and legacies 2a 124,018 4,844 – 128,862 130,125 3,884 – 134,009
Charitable activities 2b 2,644 5,330 – 7,974 7,633 – – 7,633
Other trading activities 2c 4,577 – – 4,577 4,712 – – 4,712
Investments 2d 2,568 192 7 2,767 1,793 80 112 1,985
Gains on disposal of tangible 2e 7,582 – – 7,582 2,698 – – 2,698
fixed assets
Other 2f 346 – – 346 728 – – 728
Total income 141,735 10,366 7 152,108 147,689 3,964 112 151,765
Expenditure on:
Charitable activities 3a 95,562 8,859 – 104,421 91,965 1,248 – 93,213
Raising funds 3b 22,280 – 19 22,299 22,219 – 16 22,235
Total expenditure 117,842 8,859 19 126,720 114,184 1,248 16 115,448
Net (losses)/gains on investments (8,803) – (827) (9,630) 6,712 – 1,330 8,042
Net income/(expenditure) 15,090 1,507 (839) 15,758 40,217 2,716 1,426 44,359
Transfers between funds 16 (2,329) 2,329 – – – – – –
Other recognised gains:
Actuarial (loss)/gain on defined 25 (1,687) – – (1,687) 26,140 – – 26,140
benefit pension scheme
Net movement in funds 11,074 3,836 (839) 14,071 66,357 2,716 1,426 70,499
Reconciliation of funds:
Fund balances brought forward
240,041 10,556 9,861 260,458 173,684 7,840 8,435 189,959
at 1 January:
Fund balances carried forward
251,115 14,392 9,022 274,529 240,041 10,556 9,861 260,458
at 31 December:
**----- End of picture text -----**
All gains and losses recognised in the current and preceding financial year are included in the Statement of Financial Activities. The notes on pages 51 to 77 form part of these accounts.
**TRUSTEES’ REPORT AND ACCOUNTS 2022 47**
## **Consolidated and charity balance sheets**
Year ended 31 December 2022
**----- Start of picture text -----**
Group Group Charity Charity
2022 2021 2022 2021
Notes £’000 £’000 £’000 £’000
Fixed assets
Intangible assets 4 7,725 8,691 7,610 8,691
Tangible assets 5 43,785 61,312 43,774 61,296
Investments 6 133,446 115,165 133,446 115,165
Programme-related investments 6c – 34 – 34
Total fixed assets 184,956 185,202 184,830 185,186
Current assets
Stocks 7 227 545 – –
Debtors 8 85,861 79,967 85,330 79,994
Cash at bank and in hand 30,772 23,396 27,672 21,005
Total current assets 116,860 103,908 113,002 100,999
Creditors
Amounts falling due within one year 9 (15,891) (16,902) (15,359) (16,417)
Net current assets 100,969 87,006 97,643 84,582
Total assets less current liabilities 285,925 272,208 282,473 269,768
Creditors
Amounts falling due after more than one year
Provisions for liabilities and charges 11 (575) (646) (575) (546)
Defined benefit pension liability 25 (10,821) (11,104) (10,821) (11,104)
Total net assets 274,529 260,458 271,077 258,118
The funds of the charity:
Endowment funds 16 9,022 9,861 9,022 9,861
Restricted income funds 16 14,392 10,556 10,501 10,556
Unrestricted income funds:
Pension reserve 16 (10,821) (11,104) (10,821) (11,104)
Other charitable funds 16 120,571 108,775 121,010 106,435
Designated funds 16 141,365 142,370 141,365 142,370
Total funds 274,529 260,458 271,077 258,118
**----- End of picture text -----**
The notes on pages 51 to 77 form part of these accounts.
These accounts were approved and authorised for issue by the RSPCA Board of Trustees and signed on its behalf by:
## **René Olivieri**
_Chairperson, RSPCA Board of Trustees_ 27 June 2023
**Karen Harley**
_Treasurer, RSPCA_
**48 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Consolidated cash flow statement**
Year ended 31 December 2022
**----- Start of picture text -----**
2022 2021
Notes £’000 £’000
Cash flows from operating activities
Net cash provided by operating activities A 10,787 21,528
Cash flows from investing activities:
Dividends, interest and rents from investments 2,620 1,967
Interest received 147 18
Proceeds from the sale of property, equipment and motor vehicles 22,066 4,692
Purchase of intangibles (174) (55)
Purchase of property, plant and equipment (856) (2,192)
Proceeds from sale of investments 17,062 16,980
Purchases of investments (37,562) (42,998)
(Increase)/decrease in portfolio cash (6,714) (3,364)
Disposal/(addition) of programme related investments – 1,355
Net cash provided by investing activities (3,411) (23,597)
Change in cash and cash equivalents in the reporting period 7,376 (2,069)
Cash and cash equivalents at the beginning of the reporting period 23,396 25,465
Cash and cash equivalents at the end of the reporting period B 30,772 23,396
Notes to the consolidated cash flow statement
A) Reconciliation of net income to net cash flow from operating activities
Net income for the reporting period 15,758 44,359
Depreciation and amortisation charges 4,342 5,631
Losses/(gains) on investments 9,630 (8,042)
Dividends and interest from investments (2,767) (1,985)
Profit on disposal of fixed assets (7,582) (2,698)
Decrease/(increase) in stocks 318 (159)
(Increase)/decrease in debtors (5,894) (15,002)
(Decrease)/increase in creditors (1,011) 1,045
(Decrease)/increase in provisions (37) (146)
Pension costs less contributions payable (2,171) (2,004)
Pension scheme finance costs 201 529
Net cash provided by operating activities 10,787 21,528
B) Analysis of cash and cash equivalents
Cash in hand 30,772 23,396
Total cash and cash equivalents 30,772 23,396
**----- End of picture text -----**
No separate cash flow has been produced for the charity as permitted by FRS Section 1.12(b). The notes on pages 51 to 77 form part of these accounts.
**TRUSTEES’ REPORT AND ACCOUNTS 2022 49**
## **Analysis of change in net debt**
Year ended 31 December 2022
|**At 1 January**
**2022**
**£’000**|**Cash fows**
**£’000**|**At 31 December**
**2022**
**£’000**|
|---|---|---|
|**Cash and cash equivalents:**|||
|Cash in hand
**23.396**|**7,376**|**30,772**|
|**Total**
**23,396**|**7,376**|**30,772**|
**50 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Notes to the accounts**
Year ended 31 December 2022
## **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.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following _Accounting and Reporting by Charities_ preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the _Accounting and Reporting by Charities: Statement of Recommended Practice_ effective from 1 April 2005 which has since been withdrawn.
The charity is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this entity, which are intended to give a true and fair view of the assets, liabilities, financial position and result of the group. The charity has therefore taken advantage of exemptions from the following disclosure requirements for parent entity information presented within the consolidated financial statements: Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures.
The financial statements and corresponding notes are prepared in the functional currency of the entity (sterling), and all monetary values are rounded to the nearest whole £1,000.
## **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.
It is widely acknowledged that the current economic environment is not one of optimism. The global energy and food supply shocks resulting from Russia’s invasion of Ukraine intensified throughout 2022, leading to rising energy, food, and other goods prices. CPI inflation peaked at a 40-year high in October 2022, and the Bank of England responded by raising the base interest rate to its highest level in 14 years.
The macroeconomic context presents challenges to the RSPCA in several ways including: challenges to investment performance; a potential decrease in donations and a fall in the value of legacies from falling property prices; as well as continued inflationary pressure on the expenditure the RSPCA incurs in carrying out its charitable activities.
Despite the ongoing uncertainties, the charity has had another successful year with a net surplus of £13m for 2022, driven by continuing high levels of legacy and donation income. The group also generated a surplus of £14.1m for 2022. At 31 December 2022, free reserves within the charity were £110.2m and £109.8m for the group.
Although the free reserves of the charity as at 31 December 2022 exceed the top of the range of that specified by the Reserves Policy (£95m) detailed on page 32 of the _Trustees’ annual report and accounts_ , it is deemed an appropriate approach to take in the current economic climate and the long-term transformational journey of the RSPCA. The surplus returned has allowed trustees to further designate funds to support the investment in growing engagement and income generation, and transform the RSPCA to ensure it is able to deliver the impact set out in our strategy in a sustainable way.
The trustees have approved a three-year strategic 2023–2025 plan with a balanced net operating position to support long-term financial sustainability in the context of the above economic risks. An overall net deficit is targeted in 2023 due largely to structural long-term investment.
A combination of a healthy level of reserves, designations to support key strategic investments, a cautious budget and sufficient cash to meet the charity’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.
**Defined benefit pension scheme –** The RSPCA 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, inflation rates (CPI and RPI), post-retirement mortality rates, commutation, retirement ages and withdrawal rates. The position of the Scheme at the balance sheet date is disclosed in the Pensions Note, Note 25.
**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 and aim to be as accurate as possible at all times. The value of accrued legacy income at the balance sheet date is separately disclosed in the Debtors Note, Note 8.
**TRUSTEES’ REPORT AND ACCOUNTS 2022 51**
## **Notes to the accounts** continued
Year ended 31 December 2022
## **d) Consolidation**
The financial statements consolidate the results of the RSPCA and its wholly owned subsidiaries (see Note 19). The consolidation is prepared on a line-by-line basis. Intragroup transactions, balances and realised profits have been eliminated on consolidation. 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 around 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 RSPCA.
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 RSPCA’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 is recognised on a receivable basis and therefore accrued at the year end where it has not yet been received. Other investment income is recognised when the charity’s entitlement is measurable.
Legacies are deemed receivable from the date of probate, provided that sufficient information has been received to enable the charity 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 RSPCA to be valued as receivable. Pecuniary legacies are valued at the amount notified to the RSPCA. The RSPCA 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.
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_ .
Gift Aid on donation income is recognised when the RSPCA becomes entitled to it, it is probable and can be measured reliably. Entitlement is taken at the point the underlying donation is received.
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.
## **i) 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.
## **ii) 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.
## **iii) Governance and support costs**
Governance costs include the direct costs of administering the RSPCA. Support costs represent the central services of the RSPCA, including the cost of maintaining facilities shared by all or most aspects of the charity. Governance and support costs, net of incidental income, have been allocated across the RSPCA’s activities according to the 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.
## **iv) 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.
## **v) Prosecutions**
Prosecution costs are based on costs incurred during the period. Prosecution costs are incurred when cases go to trial. These are shown as costs recovered within Income from charitable activities and refer to cash received during the period.
## **vi) Operating leases**
Rental costs under operating leases are included in total expenditure in annual instalments over the period of the leases.
## **g) 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 RSPCA include trade and other debtors, equity shares, property trusts, government and corporation stocks, and alternatives.
Debtors are recognised at the amount receivable, and are carried at amortised cost.
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 (excluding deferred income). Trade and other creditors are recognised at the amount payable, and are carried at amortised cost.
## **f) Expenditure**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category.
**52 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Notes to the accounts** continued
Year ended 31 December 2022
## **h) Properties**
Freehold and leasehold properties are shown at cost. Equity housing properties are owned by the charity, 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 RSPCA and the inspector in proportion to their shares in the property.
The inspector’s share in an existing RSPCA property, or an additional investment in an equity property, is treated by the charity as sale proceeds for that proportion of the property sold. Depreciation is charged on the cost of the charity’s equity share of the property using a 40-year useful life. The inspector is entitled to purchase the remaining equity owned by the charity in the property at market value at date of sale. The equity housing scheme is closed to new entrants.
The RSPCA undertakes an annual impairment review, and where significant impairment is incurred, impairment 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.
## **i) Computers and other equipment**
The RSPCA 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 FRS 102. Assets hired as part of an operating lease arrangement are not capitalised.
## **j) 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.
## **k) Intangible assets**
Intangible assets are shown at cost. Any expenditure fulfilling the recognition criteria of an intangible asset as per FRS 102 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.
## **l) 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.
## **m) Stocks**
Stocks are stated at the lower of cost and the net realisable value. Provision is made for slow-moving or obsolete items.
## **n) 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 Note 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 18.
## **o) Pension costs**
For the defined benefit section of the pension scheme, net interest on the net defined benefit liability/asset is recognised in the Statement of Financial Activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations.
The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses. Actuarial gains and losses are recognised immediately in other recognised gains and losses.
## **p) Taxation**
As a charity, the RSPCA 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 charity is also able to partially recover Value Added Tax (VAT). Expenditure subject to VAT that is not recoverable by the charity is recorded in the accounts inclusive of the VAT.
The RSPCA is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly, the RSPCA 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.
RSPCA Trading Limited makes a qualifying donation of taxable profit to the charity to the full extent allowable. Unless material any corporation tax liability arising in RSPCA Trading Limited is included within the resources expended by the group.
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.
**TRUSTEES’ REPORT AND ACCOUNTS 2022 53**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
Unrestricted Restricted Endowment Total Total
funds funds funds 2022 2021
£’000 £’000 £’000 £’000 £’000
2. Income and endowments
a) Donations and legacies
CHARITY
Legacy income 83,793 2,428 – 86,221 90,850
Contributions and donations 40,620 2,416 – 43,036 43,415
Total RSPCA donations and legacies 124,413 4,844 – 129,257 134,265
GROUP
Legacy income 83,793 2,428 – 86,221 90,850
Contributions and donations 40,620 2,416 – 43,036 43,415
Total RSPCA donations and legacies 124,413 4,844 – 129,257 134,265
Less Gift Aid (395) – – (395) (256)
Total donations and legacies 124,018 4,844 – 128,862 134,009
**----- End of picture text -----**
The income from donations and legacies in 2021 for the group (charity) was £134,009k (£134,265k) of which £130,125k (£130,381k) was unrestricted and £3,884k (£3,844k) was restricted.
## **b) Income from charitable activities**
|**b) Income from charitable activities**||
|---|---|
|**CHARITY**||
|Sale of goods
**889**
**37**
**–**|**926**
930|
|Rehoming, veterinary and boarding income
**1,039**
**1**
**–**|**1,040**
1,090|
|Costs recovered
**844**
**3**
**–**|**847**
1,045|
|Other fees and charges received
**–**
**72**
**–**|**72**
44|
|**Total RSPCA income from charitable activities**
**2,772**
**113**
**–**|**2,885**
3,109|
|**GROUP**||
|Sale of goods
**889**
**37**
**–**|**926**
930|
|Rehoming, veterinary and boarding income
**1,039**
**1**
**–**|**1,040**
1,090|
|Costs recovered
**716**
**3**
**–**|**719**
1,045|
|Other fees and charges received
**–**
**72**
**–**|**72**
44|
|**Total RSPCA income from charitable activities**
**outside of the group**
**2,644**
**113**
**–**|**2,757**
3,109|
|Freedom Food’s welfare assessment and licence fees
**–**
**5,217**
**–**|**5,217**
4,524|
|**Total income from charitable activities**
**2,644**
**5,330**
**–**|**7,974**
7,633|
The income from charitable activities in 2021 for the group (charity) was £7,633k (£3,109k) of which £7,663k (£3,109k) was unrestricted and nil was restricted. Costs recovered include £603k awarded to the RSPCA in successful prosecutions (2021: £665k).
**54 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
Unrestricted Restricted Endowment Total Total
funds funds funds 2022 2021
£’000 £’000 £’000 £’000 £’000
2. Income and endowments (continued)
c) Other trading activities
CHARITY
RSPCA income (from social lotteries) 3,340 – – 3,340 3,661
GROUP
RSPCA income (from social lotteries) 3,340 – – 3,340 3,661
Sale of goods 686 – – 686 645
Income from royalties and sponsorship 551 – – 551 406
Total group other trading activities 4,577 – – 4,577 4,712
The income from other trading activities in 2021 for the group (charity) was £4,712k (£3,661k) of which £4,712k (£3,661k) was unrestricted and nil was restricted.
d) Investment income
CHARITY
Income from listed investments 2,430 182 7 2,619 1,967
Bank and other interest 137 7 – 144 18
Total investment income 2,567 189 7 2,763 1,985
GROUP
Income from listed investments 2,431 182 7 2,620 1,967
Bank and other interest 137 10 – 147 18
Total investment income 2,568 192 7 2,767 1,985
The income from investments in 2021 for the group and charity was £1,985k of which £1,793k was unrestricted, £80k was restricted and £112k was in respect
of endowment funds.
e) Gains on disposal of tangible fixed assets
CHARITY AND GROUP
Disposal of fixed assets 7,582 – – 7,582 2,698
Total RSPCA gains on disposal of tangible fixed assets 7,582 – – 7,582 2,698
The gains on disposal of tangible fixed assets for the group and charity in 2021 was £2,698k, of which £2,698k was unrestricted and nil was restricted.
f) Other income
CHARITY
Other fees and charges 837 – – 837 688
Furlough income – – – – 408
Total charity other income 837 – – 837 1,096
GROUP
Other fees and charges 346 – – 346 320
Furlough income – – – – 408
Total group other income 346 – – 346 728
Total other income in 2021 for the group (charity) was £728k (£1,096k) of which £728k (£1,096k) was unrestricted and nil was restricted.
**----- End of picture text -----**
**TRUSTEES’ REPORT AND ACCOUNTS 2022 55**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
Unrestricted funds
Restricted Endowment
Total Total
funds funds
Support 2022 2021
Direct costs Total (Direct) (Direct) £’000 £’000
£’000 £’000 £’000 £’000
£’000
3. Expenditure
a) Charitable activities
CHARITY
Field animal welfare:
Hospitals and animal centres 24,757 10,952 35,709 3,548 – 39,257 32,433
Inspectorate 31,299 8,489 39,788 619 – 40,407 37,821
Prosecutions – animal care 2,156 371 2,527 2 – 2,529 2,122
Support to branches 6,687 527 7,214 119 – 7,333 7,001
Prosecutions – legal 3,139 225 3,364 – – 3,364 2,612
Campaigns, communications, publications 3,669 946 4,615 – – 4,615 3,529
Science 1,080 400 1,480 62 – 1,542 1,443
Education 365 379 744 428 – 1,172 1,985
International 287 42 329 314 – 643 667
RSPCA total cost of charitable activities 73,439 22,331 95,770 5,092 – 100,862 89,613
GROUP
Field animal welfare:
Hospitals and animal centres 24,629 10,952 35,581 3,548 – 39,129 32,433
Inspectorate 31,299 8,489 39,788 619 – 40,407 37,821
Prosecutions – animal care 2,156 371 2,527 2 – 2,529 2,122
Support to branches 6,687 527 7,214 119 – 7,333 7,001
Prosecutions – legal 3,139 225 3,364 – – 3,364 2,612
Campaigns, communications, publications 3,589 946 4,535 – – 4,535 3,529
Science 1,080 400 1,480 62 – 1,542 1,443
Education 365 379 744 428 – 1,172 1,985
International 287 42 329 314 – 643 667
RSPCA total cost of charitable activities
73,231 22,331 95,562 5,092 – 100,654 89,613
outside of the group
Freedom Food charitable expenditure – – – 3,767 – 3,767 3,600
Total cost of charitable activities 73,231 22,331 95,562 8,859 – 104,421 93,213
**----- End of picture text -----**
Expenditure on charitable activities in 2021 for the group (charity) was £93,213k (£89,613k) of which £91,965k (£88,365k) was unrestricted and £1,248k (£1,248k) was restricted.
**56 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
Total Total
2022 2021
£’000 £’000
3. Expenditure (continued)
a) Charitable activities (continued)
CHARITY AND GROUP
Support to branches:
Branch support officers 1,622 1,409
Shared fundraising income grant* 3,904 3,993
Grants 450 149
Cost of sales 931 672
Other support 426 778
Total support to branches 7,333 7,001
**----- End of picture text -----**
*The shared fundraising income grant is a fixed rate payment to all branches based on the income collected by the charity from door-to-door campaigns.
**----- Start of picture text -----**
Unrestricted funds
Restricted Endowment
Total Total
funds funds
Support 2022 2021
Direct costs Total (Direct) (Direct) £’000 £’000
£’000 £’000 £’000 £’000
£’000
b) Raising funds
CHARITY
Total RSPCA fundraising activities 19,479 2,028 21,507 – 19 21,526 21,598
GROUP
Total RSPCA fundraising activities 19,479 2,028 21,507 – 19 21,526 21,493
RSPCA Trading Limited expenditure 773 – 773 – – 773 742
Total cost of raising funds 20,252 2,028 22,280 – 19 22,299 22,235
**----- End of picture text -----**
Expenditure on raising funds in 2021 for the group (charity) was £22,235k (£21,598k) of which £22,219k (£21,582k) was unrestricted, £16k (£16k) was in respect of endowment funds, and nil (nil) was restricted.
**TRUSTEES’ REPORT AND ACCOUNTS 2022 57**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
Total Total
2022 2021
£’000 £’000
3. Expenditure (continued)
c) Support, governance and administration costs
CHARITY AND GROUP
Governance 1,740 918
Finance, transformation and supporter service 6,592 4,307
Headquarters services 1,843 1,030
Central information technology and communications 6,584 5,984
Legal 578 488
Human resources and training 6,285 4,847
Property, printing, purchases and transport 737 939
Total support, governance and administration costs 24,359 18,513
Allocation of support and governance costs
Total cost 24,359 18,513
Charitable activities (22,331) (17,062)
Raising funds (2,028) (1,451)
– –
d) Grants payable
CHARITY AND GROUP
Expenditure on charitable activities includes the following grants payable:
Support to branches* 4,354 4,142
Science, international, other 407 625
Total grants payable included in charitable activities 4,761 4,767
Recipients of institutional grants:
RSPCA branches – door-to-door grants 3,904 3,993
RSPCA branches – neutering grants 102 149
RSPCA branches – other grants 348 –
Other 407 625
Total institutional grants paid 4,761 4,767
**----- End of picture text -----**
* Support to branches is made up of the shared fundraising income grant (£3,904k) and other grants payable to branches (£450k).
**58 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
Total Total
2022 2021
£’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 104 106
Depreciation of tangible fixed assets 3,196 4,476
Amortisation of intangible fixed assets 1,130 1,155
Hire of equipment under operating leases 107 130
Premises rent 1,238 112
Trustee indemnity insurance 31 29
Other insurance excluding motors 535 333
Net interest on the defined benefit pension scheme 201 529
GROUP
Included in total expenditure are fees payable in respect of:
Auditor’s remuneration – statutory audit 148 135
Depreciation of fixed assets 3,202 4,476
Amortisation of intangible fixed assets 1,140 1,155
Hire of equipment under operating leases 267 186
Premises rent 1,238 112
Trustee indemnity insurance 31 29
Other insurance excluding motors 553 346
Net interest on the defined benefit pension scheme 201 529
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 48,354 42,772
Social security costs 4,974 4,417
Employer’s contribution to the defined contribution pension scheme 5,076 4,600
Total employment costs 58,404 51,789
**----- End of picture text -----**
**TRUSTEES’ REPORT AND ACCOUNTS 2022 59**
## **Notes to the accounts** continued
Year ended 31 December 2022
|**Total**|Total|
|---|---|
|**2022**|2021|
|**3. Expenditure (continued)**||
|**f) Analysis of staf costs, trustee remuneration and expenses, and the cost of key management personnel**
**(continued)**||
|The emoluments of higher-paid staf within the following scales were:||
|£60,000–£69,999
**35**|17|
|£70,000–£79,999
**10**|10|
|£80,000–£89,999
**12**|6|
|£90,000–£99,999
**2**|2|
|£100,000–£109,999
**1**|–|
|£110,000–£119,999
**1**|1|
|£120,000–£129,999
**2**|–|
|£130,000–£139,999
**1**|1|
|£150,000–£159,999
**–**|1|
|£160,000–£169,999
**1**|–|
Emoluments include salary, benefits in kind and exit costs, but exclude pension scheme contributions. 65 employees earning more than £60,000 in 2022 participated in the pension scheme (2021: 38).
Employer contributions of £522k were paid into the pension scheme on behalf of these members in 2022 (2021: £302k).
In 2022, The charity made termination payments of £262k (2021: £186k). 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 made to any of the trustees in their role as trustee. Costs and reasonable expenses incurred by trustees on behalf of the charity – such as travel, subsistence, telephone costs, postage and incidentals – are reimbursed. In 2022 seven trustees were reimbursed for expenses and/or had expenses paid by the charity (2021: 8). In 2022, trustees were reimbursed £1k (2021: 2k) for expenses relating to transport, overnight accommodation and subsistence and other miscellaneous items. The RSPCA paid £0k (2021: £2k) on their behalf.
Mr Kevin Degenhard, a trustee, was formerly employed by the RSPCA, 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 charity’s pension scheme in accordance with his entitlement under the scheme rules. He lives in a shared-equity property as a participant in the RSPCA’s shared-equity housing scheme.
The key management personnel of the parent charity, the RSPCA, comprised the trustees, chief executive, the chief operating officer, the director of people and culture, the director of policy, prevention and campaigns, 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 RSPCA were £1,364k (2021: £1,306k).
The key management personnel of the group comprise those of the RSPCA and the key management personnel of its wholly owned subsidiaries, RSPCA Trading Limited and Freedom Food Limited. The key management of RSPCA Trading Limited is the same as that of its parent charity. The key management personnel of Freedom Food Limited is comprised of the chief executive officer whose total employee benefits total £102k (2021: £116k). The total employee benefits of key management personnel of the group was therefore £1,466k (2021: £1,411k). Redundancy payments made to group key management personnel within the year totalled £46k (2021: nil).
**60 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
Full-time Total Full-time Total
equivalents employees equivalents employees
2022 2022 2021 2021
3. Expenditure (continued)
g) Staff numbers
The analysis of the average number of employees by activity was as follows:
Hospitals and animal centres 529 610 515 621
Inspectorate 406 438 393 429
Prosecutions 11 11 11 12
Support to branches 37 38 33 34
Campaigns, communication, publications 40 43 47 51
Science 19 22 22 25
Education 30 39 31 41
International 2 2 2 2
Support and governance 195 207 164 176
Fundraising 92 96 87 91
Total average employee numbers 1,361 1,506 1,305 1,482
2022 2021
£’000 £’000
4. Intangible fixed assets
CHARITY
Cost
At 1 January 11,365 11,310
Additions 49 55
– –
Disposals
At 31 December 11,414 11,365
Accumulated depreciation
At 1 January 2,674 1,519
– –
Released on disposals
Charge for the year 1,130 1,155
At 31 December 3,804 2,674
Net book value at 31 December 7,610 8,691
**----- End of picture text -----**
Intangible assets relate to investments in systems in relation to call handling and a database of supporters. Amortisation is charged to the SOFA on a straight-line basis against the underlying activity to which the intangible asset relates. Both systems have been invested in for long-term use by the RSPCA, therefore a useful economic life of 10 years at the higher end of the policy outlined in Note 1 is deemed most appropriate.
**TRUSTEES’ REPORT AND ACCOUNTS 2022 61**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
2022 2021
£’000 £’000
4. Intangible fixed assets (continued)
GROUP
Cost
At 1 January 11,365 11,310
Additions 174 55
– –
Disposals
At 31 December 11,539 11,365
Accumulated depreciation
At 1 January 2,674 1,519
– –
Released on disposals
Charge for the year 1,140 1,155
At 31 December 3,814 2,674
Net book value at 31 December 7,725 8,691
**----- End of picture text -----**
Intangible assets relate to investments in systems in relation to call handling and a database of supporters. Amortisation is charged to the SOFA on a straight-line basis against the underlying activity to which the intangible asset relates. Both systems have been invested in for long-term use by the charity, therefore a useful economic life of 10 years at the higher end of the policy outlined in Note 1 is deemed most appropriate.
**62 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
Leasehold property Freehold property
Equity Equity Animal centres Motor
Other Equipment Total
housing housing & other vehicles
£’000 £’000 £’000
£’000 £’000 £’000 £’000
5. Tangible fixed assets
GROUP
Cost
At 1 January 2022 43 11,594 5,002 83,031 18,490 10,635 128,795
Additions – 58 – 28 702 68 856
– –
Disposals (565) (23,919) (478) (200) (25,162)
Transfers – (137) – (560) – – (697)
At 31 December 2022 43 11,515 4,437 58,580 18,714 10,503 103,792
Accumulated depreciation
At 1 January 2022 18 3,000 1,649 36,277 17,723 8,816 67,483
– –
Released on disposals (157) (9,851) (479) (191) (10,678)
Charge for the year 1 288 92 1,512 348 961 3,202
At 31 December 2022 19 3,288 1,584 27,938 17,592 9,586 60,007
Net book value at 31 December 2022 24 8,227 2,853 30,642 1,122 917 43,785
Net book value at 31 December 2021 25 8,594 3,353 46,754 767 1,819 61,312
CHARITY
Cost
At 1 January 2022 43 11,594 5,002 83,031 18,360 10,635 128,665
Additions – 58 – 28 702 68 856
– –
Disposals (565) (23,919) (380) (200) (25,064)
Transfers – (137) 0 (560) – – (697)
At 31 December 2022 43 11,515 4,437 58,580 18,682 10,503 103,760
Accumulated depreciation
At 1 January 2022 18 3,000 1,649 36,277 17,609 8,816 67,369
– –
Released on disposals (157) (9,851) (380) (191) (10,579)
Charge for the year 1 288 92 1,512 342 961 3,196
At 31 December 2022 19 3,288 1,584 27,938 17,571 9,586 59,986
Net book value at 31 December 2022 24 8,227 2,853 30,642 1,111 917 43,774
Net book value at 31 December 2021 25 8,594 3,353 46,754 751 1,819 61,296
**----- End of picture text -----**
Included in Freehold property, other are properties in the course of construction costing £0k (2021: £1,295k).
**TRUSTEES’ REPORT AND ACCOUNTS 2022 63**
## **Notes to the accounts** continued
Year ended 31 December 2022
The National Society holds shared equity in a number of housing properties with members of the RSPCA Inspectorate no longer in service. The scheme is closed for further entry. The total value of inspectors’ contributions to equity housing as at 31 December 2022 was £3,466k (2021: £3,854k). Should an inspector leave the scheme, the RSPCA has an obligation to refund the inspector’s share in the value of the related property at the time. It is intended that any RSPCA obligation will be funded by the proceeds from the sale of the property.
Included in Freehold and Leasehold property, other and freehold equity housing are houses currently occupied by pensioners of the RSPCA. The relevant net book value at the balance sheet date comprises:
**----- Start of picture text -----**
Leasehold property Freehold property
Equity housing Other Equity housing Other
£’000 £’000 £’000 £’000
5. Tangible fixed assets (continued)
Net book value
At 31 December 2022 – 82 360 1,952
At 31 December 2021 – 85 405 2,074
Group Group Charity Charity
2022 2021 2022 2021
£’000 £’000 £’000 £’000
6. Investments
a) Analysis of movements in the year
Market value at 1 January 107,781 73,721 107,781 73,721
Acquisitions at cost 38,271 42,998 38,271 42,998
Disposal proceeds (17,074) (16,980) (17,074) (16,980)
Realised and unrealised gains/(losses) in the year (9,630) 8,042 (9,630) 8,042
Fair value at 31 December 119,348 107,781 119,348 107,781
Cash held in portfolio at 31 December 14,098 7,384 14,098 7,384
Total fair value at 31 December 133,446 115,165 133,446 115,165
Historical cost at 31 December 108,164 85,326 108,164 85,326
b) Analysis of investments held at 31 December
Listed investments:
Equities 85,562 75,937 85,562 75,937
Bonds 19,166 19,229 19,166 19,229
Multi-asset funds 4,921 4,590 4,921 4,590
Alternatives 8,990 8,025 8,990 8,025
Total listed securities 118,639 107,781 118,639 107,781
Unlisted securities:
Investment property 709 – 709 –
Cash 14,098 7,384 14,098 7,384
Total investments at fair value 133,446 115,165 133,446 115,165
**----- End of picture text -----**
**64 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
Group Group Charity Charity
2022 2021 2022 2021
£’000 £’000 £’000 £’000
6. Investments (continued)
c) Programme-related investments
Loans to branches less provisions – 34 – 34
**----- End of picture text -----**
The total loss on investments was £9,630k (2021: gain £8,042k) of which £8,803k (2021: gain £6,712k) was unrestricted, £0k (2021: gain £0k) was restricted and a loss of £827k (2021: gain £1,330k) was in respect of endowment funds.
The fair value of the investment properties held by the RSPCA has been determined using percentage yields estimated by the RSPCA’s in-house estate surveyor who is a fellow of the Royal Institution of Chartered Surveyors. .
Programme-related investments relate to loans made by the RSPCA to RSPCA branches. No new loans were made by the National Society within the year, and a provision was recognised in 2022 for the outstanding loan as at 31 December 2021. There is a zero outstanding balance as at 31 December 2022.
|The following investments comprised over 5% of the portfolio as at 31 December, and are considered signifcant:|**£’000**|
|---|---|
|Schroder QEP Global Core Fund, Units -I- Income, Schroder Unit Trusts Limited, 0766108|**15,133**|
|Schroder Global Sustainable Growth, Shs -I QV- Distribution, Schroder Int. Selection Fund SICAV, BKLF434|**25,837**|
|Schroder Institutional Sterling, Broad Market Bond Fund, Units -I- Income Gross, Schroder Unit Trusts Limited, B06RTZ2|**7,757**|
|||
|The following investments comprised over 5% of the portfolio as at 31 December, and are considered signifcant:|The following investments comprised over 5% of the portfolio as at 31 December, and are considered signifcant:|**£’000**|**£’000**|
|---|---|---|---|
|Schroder QEP Global Core Fund, Units -I- Income, Schroder Unit Trusts Limited, 0766108||**15,133**||
|Schroder Global Sustainable Growth, Shs -I QV- Distribution, Schroder Int. Selection Fund SICAV, BKLF434||**25,837**||
|Schroder Institutional Sterling, Broad Market Bond Fund, Units -I- Income Gross, Schroder Unit Trusts Limited, B06RTZ2||**7,757**||
|||||
|**Group**
**2022**
**£’000**
Group
2021
£’000
**Charity**
**2022**
**£’000**|||Charity
2021
£’000|
|**7. Stocks**||||
|**Stocks held for resale**
**277**
545
**–**|||–|
|**8. Debtors**||||
|Income tax and VAT recoverable
**1,674**
1,117
**1,782**|||1,223|
|Prepayments
**2,368**
1,868
**2,262**|||1,845|
|Accrued income*
**79,940**
74,665
**78,652**|||73,694|
|Group debtors
**–**
–
**1,407**|||1,374|
|Other debtors
**1,879**
2,317
**1,227**|||1,858|
|**Total debtors**
**85,861**
79,967
**85,330**|||79,994|
*Accrued income for 2022 includes accrued legacy income for the group and the charity of £78,446k (2021: £73,490k).
**TRUSTEES’ REPORT AND ACCOUNTS 2022 65**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
Group Group Charity Charity
2022 2021 2022 2021
£’000 £’000 £’000 £’000
9. Creditors
Amounts falling due within one year
Trade creditors 5,018 6,991 4,692 6,737
Branch creditors 5,020 3,993 5,020 3,993
Accruals and deferred income* 4,617 4,818 4,411 4,587
Other creditors** 1,236 1,100 1,236 1,100
Total creditors 15,891 16,902 15,359 16,417
**----- End of picture text -----**
*Deferred income for the group includes deferred income for the National Society and both subsidiary entities. The National Society balance includes lottery income received for future draws. Freedom Food Limited deferred income includes membership income received within the reporting period relating to future accounting periods. RSPCA Trading Limited deferred income includes entry fees received by RTL within the reporting period for future accounting periods.
** Other creditors includes PAYE and National Insurance costs relating to 2022 yet to be paid at the balance sheet date.
|||**At 1 January**|Charged to|Utilised/|**At 31 December**|
|---|---|---|---|---|---|
|||**2022**|SOFA|released|**2022**|
|||**£’000**|£’000|£’000|**£’000**|
|**10. Deferred income**||||||
|**GROUP**||||||
|Deferred income||**101**|372|(101)|**372**|
|**Deferred income**||**101**|372|(101)|**372**|
|**CHARITY**||||||
|Deferred income||**–**|246|–|**246**|
|**Deferred income**||**–**|246|–|**246**|
|||||||
|**11. Provisions for liabilities and charges**||||||
|**GROUP**||||||
|Taxation provision||**213**|172|(213)|**172**|
|Other provision||**433**|70|(100)|**403**|
|**Total provisions**||**646**|242|(313)|**575**|
|**CHARITY**||||||
|Taxation provision||**213**|172|(213)|**172**|
|Other provision||**333**|70|–|**403**|
|**Total provisions**||**546**|242|(213)|**575**|
The taxation provision includes an estimate for the tax on 2022 employee benefits payable to HMRC at the end of the 2022/23 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, or payment dates post-settlement in 2023. All provisions are estimated by taking into account known current events at the end of the reporting period, and historic events.
**66 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Notes to the accounts** continued
Year ended 31 December 2022
||**2022**
**£’000**|2021
£’000|
|---|---|---|
|**12. Commitments**|||
|At 31 December 2022, the group had the following capital and other budgeted project commitments.|||
|Contracted|||
|Authorised but not contracted|**3,981**|7,367|
All commitments relate to the parent charity. All commitments will be funded by the capital and project commitments designated fund (Note 18).
## **13. Contingent liabilities and assets**
The Society has 125 legacies with a total value of £15m against which claims could be made. Indemnities are in place for all of these legacies, to protect the Society against future financial loss. The possibility of a claim being made is deemed remote in the majority of cases.
There is a current ongoing dispute regarding water charges for which legal advice has been taken and future legal costs may be incurred. The amount of costs and potential reimbursement of these cannot be quantified at the point of signing these financial statements.
The RSPCA 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 RSPCA would be obliged to continue the tenancy.
## **14. Financial instruments**
The charity and group held only basic financial instruments at the balance sheet date as outlined in Section 11 ‘Basic Financial Instruments’ of FRS 102. Basic financial instruments of the charity and group comprise cash, trade debtors, trade creditors and investments. Trade debtors and trade creditors are held at the balance sheet date at the consideration expected to be paid or received. Investments are revalued to their fair value at the balance sheet date, with any arising unrealised gain or loss recognised in the Statement of Financial Activities. The charity and group held investments of £133,446k (£115,165k) at the 31 December 2022 (31 December 2021).
## **15. Trusteeships**
The RSPCA holds property title deeds and investments as custodian trustee for certain branches. The property title deeds which are held by the RSPCA as a custodian trustee relate to a number of operational buildings for use by certain branches carrying out their charitable activities.
**TRUSTEES’ REPORT AND ACCOUNTS 2022 67**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
At 1 January Transfer between Other recognised At 31 December
Income Expenditure
2022 £’000 £’000 funds** gains/(losses) 2022
£’000 £’000 £’000 £’000
16. Analysis of movement of funds
YEAR ENDED 31 DECEMBER 2022
a) GROUP
Endowment funds*
Bowmer Fund 588 7 (1) – (42) 552
The A&D Simpson Fund 2,665 – (3) – (197) 2,465
Wyndham Cottle Charity – capital fund 3,337 – (3) – (267) 3,067
MT & VL Wythe Charitable Trust 1,198 – (10) – (107) 1,081
Albekier Fund 2,073 – (2) – (214) 1,857
Total endowment funds 9,861 7 (19) – (827) 9,022
Restricted funds
Animal welfare – operational and capital funds 1,545 3,907 (3,216) – – 2,236
Birmingham Fund 127 24 – – – 151
Overseas funds 865 29 (314) – – 580
Regional funds 1,684 586 (856) – – 1,414
Tubney Grant Fund 3,404 8 (62) – – 3,350
Other restricted funds 2,931 592 (646) (109) – 2,768
Freedom Food Limited – 5,220 (3,765) 2,438 – 3,893
Total restricted funds 10,556 10,366 (8,859) 2,329 – 14,392
Unrestricted funds
Pension reserve (11,104) (201) – 2,171 (1,687) (10,821)
General Fund 108,775 141,031 (91,793) (28,639) (8,803) 120,571
Designated funds 142,370 905 (26,049) 24,139 – 141,365
Total unrestricted funds 240,041 141,735 (117,842) (2,329) (10,490) 251,115
Total group funds 260,458 152,108 (126,720) – (11,317) 274,529
**----- End of picture text -----**
* All endowment funds are permanent endowments.
** The transfer between funds reflects the movement from General Funds to Designated Funds, the £2m payment to the Pension Fund from the General Fund, a £0.1m release from restricted funds to the General Fund and a £2.4m transfer of Freedom Food Limited reserves upon consolidation from the General Fund to restricted funds.
Further narrative behind the restricted and endowment funds can be found on page 78 of the _Trustees’ report and accounts_ .
**68 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
At 1 January Transfer between Other recognised At 31 December
Income Expenditure
2022 £’000 £’000 funds** gains/(losses) 2022
£’000 £’000 £’000 £’000
16. Analysis of movement of funds (continued)
YEAR ENDED 31 DECEMBER 2022
b) CHARITY
Endowment funds*
Bowmer Fund 588 7 (1) – (42) 552
The A&D Simpson Fund 2,665 – (3) – (197) 2,465
Wyndham Cottle Charity – capital fund 3,337 – (3) – (267) 3,067
MT & VL Wythe Charitable Trust 1,198 – (10) – (107) 1,081
Albekier Fund 2,073 – (2) – (214) 1,857
Total endowment funds 9,861 7 (19) – (827) 9,022
Restricted funds
Animal welfare – operational and capital funds 1,545 3,907 (3,214) – – 2,238
Birmingham Fund 127 24 (0) – – 151
Overseas funds 865 29 (314) – – 580
Regional funds 1,684 586 (856) – – 1,414
Tubney Grant Fund 3,404 8 (62) – – 3,350
Other restricted funds 2,931 592 (646) (109) – 2,768
Total restricted funds 10,556 5,146 (5,092) (109) – 10,501
Unrestricted funds
Pension reserve (11,104) (201) – 2,171 (1,687) (10,821)
General Fund 106,435 140,807 (91,228) (26,201) (8,803) 121,010
Designated funds 142,370 905 (26,049) 24,139 – 141,365
Total unrestricted funds 237,701 141,511 (117,277) 109 (10,490) 251,554
Total charity funds 258,118 146,664 (122,388) – (11,317) 271,077
**----- End of picture text -----**
* All endowment funds are permanent endowments.
** The transfer between funds reflects the movement from General Funds to Designated Funds, the £2m payment to the Pension Fund from the General Fund and a £0.1m release from restricted funds to the General Fund.
Further narrative behind the restricted and endowment funds can be found on page 78 of the _Trustees’ report and accounts_ .
**TRUSTEES’ REPORT AND ACCOUNTS 2022 69**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
At 1 January Transfer between Other recognised At 31 December
Income Expenditure
2021 £’000 £’000 funds* gains/(losses) 2021
£’000 £’000 £’000 £’000
16. Analysis of movement of funds (continued)
YEAR ENDED 31 DECEMBER 2021
a) GROUP
Endowment funds
Bowmer Fund 490 10 – – 88 588
The A&D Simpson Fund 2,240 44 (2) – 383 2,665
Wyndham Cottle Charity – capital fund 2,711 58 (3) – 571 3,337
MT & VL Wythe Charitable Trust 1,036 – (9) – 171 1,198
Albekier Fund 1,958 – (2) – 117 2,073
Total endowment funds 8,435 112 (16) – 1,330 9,861
Restricted funds
Animal centres – operational 1,605 430 (538) 48 – 1,545
Birmingham Fund 100 27 – – – 127
Overseas funds – 1,044 (179) – – 865
Regional funds 1,474 583 (373) – – 1,684
Tubney Grant Fund 3,473 – (69) – – 3,404
Other restricted funds 1,188 1,880 (89) (48) – 2,931
Total restricted funds 7,840 3,964 (1,248) – – 10,556
Unrestricted funds
Pension reserve (38,719) (529) – 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) – 142,370
Total unrestricted funds 173,684 147,389 (114,184) – 33,152 240,041
Total group funds 189,959 151,465 (115,448) – 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.
Further narrative behind the restricted and endowment funds can be found on page 78 of the _Trustees’ report and accounts_ .
**70 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
At 1 January Transfer between Other recognised At 31 December
Income Expenditure
2021 £’000 £’000 funds* gains/(losses) 2021
£’000 £’000 £’000 £’000
16. Analysis of movement of funds (continued)
YEAR ENDED 31 DECEMBER 2021
b) CHARITY
Endowment funds
Bowmer Fund 490 10 – – 88 588
The A&D Simpson Fund 2,240 44 (2) – 383 2,665
Wyndham Cottle Charity – capital fund 2,711 58 (3) – 571 3,337
MT & VL Wythe Charitable Trust 1,036 – (9) – 171 1,198
Albekier Fund 1,958 – (2) – 117 2,073
Total endowment funds 8,435 112 (16) – 1,330 9,861
Restricted funds
– – – – – –
Animal centres – capital funds
Animal centres – operational 1,605 430 (538) 48 – 1,545
Birmingham Fund 100 27 – – – 127
Overseas funds – 1,044 (179) – – 865
Regional funds 1,474 583 (373) – – 1,684
Tubney Grant Fund 3,473 – (69) – – 3,404
Other restricted funds 1,188 1,880 (89) (48) – 2,931
Total restricted funds 7,840 3,964 (1,248) – – 10,556
Unrestricted funds
Pension reserve (38,719) (529) – 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) – 142,370
Total unrestricted funds 172,058 142,438 (109,947) – 33,152 237,701
Total charity funds 188,333 146,514 (111,211) – 34,482 258,118
**----- 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.
Further narrative behind the restricted and endowment funds can be found on page 78 of the _Trustees’ report and accounts_ .
**TRUSTEES’ REPORT AND ACCOUNTS 2022 71**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
Total fixed Investments Net current Provisions Pension scheme Total net
assets £’000 assets £’000 liability assets
£’000 £’000 £’000 £’000
17. Analysis of group net assets
YEAR ENDED 31 DECEMBER 2022
a) GROUP
As at 31 December 2022
Endowment funds – 9,022 – – – 9,022
Restricted funds 126 – 14,266 – – 14,392
Unrestricted funds 51,384 124,424 86,703 (575) (10,821) 251,115
Total group funds 51,510 133,446 100,969 (575) (10,821) 274,529
b) CHARITY
As at 31 December 2022
Endowment funds – 9,022 – – – 9,022
Restricted funds – – 10,501 – – 10,501
Unrestricted funds 51,384 124,424 87,142 (575) (10,821) 251,554
Total charity funds 51,384 133,446 97,643 (575) (10,821) 271,077
YEAR ENDED 31 DECEMBER 2021
a) GROUP
As at 31 December 2021
Endowment funds – 9,861 – – – 9,861
Restricted funds – – 10,556 – – 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
b) CHARITY
As at 31 December 2021
Endowment funds – 9,861 – – – 9,861
Restricted funds – – 10,556 – – 10,556
Unrestricted funds 69,987 105,338 74,026 (546) (11,104) 237,701
Total charity funds 69,987 115,199 84,582 (546) (11,104) 258,118
**----- End of picture text -----**
Unrestricted funds include other charitable funds, designated funds and the pension reserve.
**72 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
At 1 January Additions Utilised/ Depreciation At 31 December
2022 in year realised and disposals 2022
£’000 £’000 £’000 £’000 £’000
18. Designated fund movements
Intangible fixed assets fund 8,691 49 – (1,130) 7,610
Tangible fixed assets fund 61,312 856 – (18,394) 43,774
Capital and project commitments 7,367 – (3,386) – 3,981
Other designations 65,000 24,139 (3,139) – 86,000
Total designations 142,370 25,044 (6,525) (19,524) 141,365
**----- End of picture text -----**
The intangible and tangible fixed asset funds represent the net book value of the fixed assets of the RSPCA. Capital and project commitments relate to a number of commitments authorised at 31 December 2022 (Note 12). Other designations are to support the transformation programme (£30m), investment in income generation activities (£25m), estate improvements (£15m), the branch development fund (£10m) and other operational programmes (£6m).
||||**RSPCA Trading Limited**
**2022**
**£’000**|**RSPCA Trading Limited**
**2022**
**£’000**|2021
£’000|**Freedom Food Limited**
**2022**
**£’000**
2021
£’000|
|---|---|---|---|---|---|---|
|**19. Subsidiary company undertakings**|||||||
|**Income and endowment from:**|||||||
|Donations and legacies|||**–**||–|**80**
–|
|Charitable activities|||**–**||–|**5,208**
4,524|
|Other trading activities|||**1,367**||1,157|**11**
–|
|**Total income**|||**1,367**||1,157|**5,299**
4,524|
|**Expenditure on:**|||||||
|Charitable activities|||**–**||–|**4,287**
3,710|
|Raising funds|||**971**||900|**–**
–|
|**Total expenditure**|||**971**||900|**4,287**
3,710|
|Net gains/(losses) on investments|||**–**||–|**–**
–|
|**Net income/expenditure**|||**396**||257|**1,012**
814|
|Taxation|||**–**||–|**–**
–|
|Gift Aid payable|||**(395)**||(256)|**–**
–|
|**Surplus/(defcit)**|||**1**||1|**1,012**
814|
|Total assets|||**1,083**||1,245|**4,416**
3,289|
|Total liabilities|||**(1,078)**||(1,241)|**(966)**
(851)|
|**Total funds at 31 December**|||**5**||**4**|**3,450**
**2,438**|
## **a) RSPCA Trading Limited (Company No: 01072608)**
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 RSPCA for the encouragement of the adoption of RSPCA-approved standards of animal welfare in livestock farming operations.
**TRUSTEES’ REPORT AND ACCOUNTS 2022 73**
## **Notes to the accounts** continued
Year ended 31 December 2022
## **19. Subsidiary company undertakings (continued)**
## **c) RSPCA Enterprises Limited (Company No: 04044564)**
Dormant for the entire year and dissolved on 13 December 2022.
## **20. Branch legacies**
During 2022, the RSPCA received £9.4m (2021: £9.6m) 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.
## **21. Legacies notified**
As at 31 December 2022, the RSPCA had been notified of 16 (2021: 15) high-value legacies (over £0.5m) within the year with an estimated value of £13m (2021: £12m). Interim payments of £4m have been received within 2022 and recognised as legacy income within 2022. Out of the remaining £9m, £5m has been accrued into 2022 as it meets the legacy accrual recognition criteria as per Note 1. £4m has not been accrued into 2022 as there is no grant of probate dated prior to 31 December 2022.
There are 380 cases notified in 2022 (excluding life interest and life interest residuary) which it has not been possible to value, and therefore these cases have not been accrued into 2022. In 2021, there were 313 such cases.
## **22. Related party transactions**
RSPCA branches are separately registered charities. The RSPCA has an arm’s-length trading relationship with most branches. Grants are made to branches when charitable objectives delivered by the branch would be enhanced. Branches are represented on the regional boards whose chairs are represented on the Branch Affairs Committee which reports to the RSPCA Board of Trustees. There were no branches in board trusteeship during 2022 or 2021.
During 2022 the RSPCA provided the services of farm livestock officers to Freedom Food Limited which reimbursed the RSPCA for the cost of £128k (2021: £350k).
The RSPCA paid salary-related costs to Freedom Food Limited employees on behalf of Freedom Food and was reimbursed for the full amount. During the year, Freedom Food Limited received £80k (2021: nil) from the National Society for the project _Eat Less Eat Better_ .
RSPCA Trading Limited accrued a qualifying distribution to be paid to the RSPCA of £395k (2021: £256k) and made sales to the RSPCA of £134k (2021: £106k). During 2022, the RSPCA re-charged overheads to RSPCA Trading Limited of £199k (2021: £158k) and to Freedom Food Limited of £188k (2021: £210k). All re-charges are made on an arm’s-length basis.
At the year end the RSPCA was owed £999k (2021: £1,170k) by RSPCA Trading Limited and £406k (2021: £204k) by Freedom Food Limited.
**----- Start of picture text -----**
Group Group Charity Charity
2022 2021 2022 2021
£’000 £’000 £’000 £’000
23. Operating lease commitments
The group and charity had total commitments at the year end
under operating leases expiring as follows:
Operating leases for properties
Less than one year 609 – 609 –
One to five years 232 – 232 –
– – – –
Over five years
841 – 841 –
Operating leases for vehicles and equipment
Less than one year 107 121 59 65
One to five years 118 43 103 –
– – – –
Over five years
225 164 162 65
**----- End of picture text -----**
**74 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Notes to the accounts** continued
Year ended 31 December 2022
## **24. Events after the end of the reporting period**
Between the balance sheet date and the date the financial statements were approved by the RSPCA Board of Trustees, the RSPCA entered into a 10-year commitment for the rental of new headquarter premises. The expected commitment value for the 10 years is £1.6m.
## **25. Pensions**
The RSPCA operates a defined benefit pension arrangement called the RSPCA Pension Scheme (the Scheme). 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 (which was closed over the year to 31 December 2022) or any other pension schemes operated by the RSPCA.
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 RSPCA 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 valuation of the Scheme is due as at 31 March 2024. In the event that the valuation reveals a larger deficit than expected the RSPCA 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 contributions may be reduced.
The contributions were recently reviewed as part of the 2021 actuarial valuation. The RSPCA expects to pay contributions of around £2m in the year to 31 December 2023 (plus expenses which are met directly).
The Scheme has a trustee board which features an independent trustee. The trustees have responsibility for obtaining valuations of the fund, administering benefit payments and investing the Scheme’s assets. The trustees delegate some of these functions to their professional advisers where appropriate.
There were no plan amendments, curtailments or settlements during the period.
The weighted average duration of the defined benefit obligation is around 15 years.
|**Principal actuarial assumptions**
**2022**|2021|
|---|---|
|Discount rate
**4.80% p.a.**|2.00% p.a.|
|Infation (RPI)
**3.10% p.a.**|3.20% p.a.|
|Infation (CPI)
**2.80% p.a.**|2.90% p.a.|
|Revaluation of deferred pensions:||
|Post 09 pension
**2.50% p.a.**|2.50% p.a.|
|Pre 09 pension in excess of GMP
**2.80% p.a.**|2.90% p.a.|
|GMP
**Fixed**|Fixed|
|Increases for pensions in payment:||
|GMP accrued before 5 April 1988
**Nil**|Nil|
|GMP accrued after 5 April 1988
**2.30% p.a.**|2.35% p.a.|
|XS pension accrued before 31 March 2008
**2.70% p.a.**|2.80% p.a.|
|Pension accrued after 31 March 2008
**2.05% p.a.**|2.10% p.a.|
|**S3PA tables with CMI 2021**|S3PA tables with CMI 2020|
|Post-retirement mortality
**projections using a long-term**|projections using a long-term|
|**improvement rate of 1.25% pa.**|improvement rate of 1.25% p.a.|
|**Members are assumed to**|Members are assumed to|
|Commutation (using current commutation factors)
**take 25% of their pension**|take 25% of their pension|
|**as tax-free cash**|as tax-free cash|
||50% of in-service deferred|
|Retirement
**All members are assumed**
**to retire at age 61.5**|members retire at age 60,
and 10% retire at each age
between 61 and 65; deferred|
||members retire at age 60|
**TRUSTEES’ REPORT AND ACCOUNTS 2022 75**
## **Notes to the accounts** continued
Year ended 31 December 2022
**----- Start of picture text -----**
25. Pensions (continued) 2022 2021
Allowance for members to leave Allowance for members to leave
Withdrawal
employment before retirement employment before retirement
Life expectancy at age 65 of male aged 45 23.3 23.3
Life expectancy at age 65 of male aged 65 22.0 21.9
Life expectancy at age 65 of female aged 45 25.8 25.8
Life expectancy at age 65 of female aged 65 24.4 24.3
% of the fair % of the fair
Bid values as at value of the Bid values as at value of the
31 Dec 2022 total plan 31 Dec 2021 total plan assets
£’000 assets as at £’000 as at
31 Dec 2022 31 Dec 2021
The current asset split is as follows:
Global equities 12,159 6% 66,123 20%
LDI funds 88,265 43% 107,053 31%
Diversified credit 19,057 9% 25,924 8%
Diversified private markets 56,212 27% 55,160 17%
Multi-asset funds 16,422 8% 58,649 18%
– –
Currency hedging (380) (450)
Property 14,171 7% 15,826 5%
Cash 935 – 2,820 1%
Total assets 206,841 100% 331,105 100%
At 31 Dec 2022 At 31 Dec 2021
£’000 £’000
Balance sheet
Fair value of assets 206,841 331,105
Present value of funded obligations (217,662) (342,209)
Surplus/(deficit) in scheme (10,821) (11,104)
Net defined benefit asset/(liability) (10,821) (11,104)
Period to Period to
31 Dec 2022 31 Dec 2021
£’000 £’000
Amount recognised in the SOFA
Current service cost – –
Administration costs – –
Interest on liabilities 6,759 4,791
Interest on assets (6,558) (4,262)
Past service costs – –
Settlement and curtailment cost – –
Total charge to SOFA 201 529
**----- End of picture text -----**
**76 TRUSTEES’ REPORT AND ACCOUNTS 2022**
## **Notes to the accounts** continued
Year ended 31 December 2022
## **25. Pensions (continued)**
**----- Start of picture text -----**
Period to Period to
31 Dec 2022 31 Dec 2021
£’000 £’000
Remeasurements over the period
Loss/(gain) on assets in excess of interest 124,400 (25,067)
Experience losses/(gains) on liabilities 19,718 5,502
Losses/(gains) from changes to demographic assumptions (4,180) 4,281
Losses/(gains) from changes to financial assumptions (138,251) (10,856)
Total remeasurements 1,687 (26,140)
Change in value of the assets
Fair value of assets at start 331,105 307,100
Interest on assets 6,558 4,262
Company contributions 2,171 2,004
– –
Contributions by Scheme participants
Benefits paid (8,593) (7,328)
Administration costs – –
– –
Change due to settlements and curtailments
Return on assets less interest (124,400) 25,067
Fair value of assets at end 206,841 331,105
Actual return on assets (117,842)
Change in value of the DB liabilities
Value of liabilities at start 342,209 345,819
Current service cost – –
– –
Contributions by Scheme participants
Past service costs – –
Interest on liabilities 6,759 4,791
Benefits paid (8,593) (7,328)
– –
Change due to settlements and curtailments
Experience (gain)/loss on liabilities 19,718 5,502
Changes to demographic assumptions (4,180) 4,281
Changes to financial assumptions (138,251) (10,856)
Value of liabilities at end 217,662 342,209
**----- End of picture text -----**
**TRUSTEES’ REPORT AND ACCOUNTS 2022 77**
## **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.
**----- Start of picture text -----**
In 2022, garden designer Martyn Wilson visited
a nursery that was supplying plants for the
RSPCA Garden at RHS Chelsea Flower Show 2023.
**----- End of picture text -----**
## **Albekier Fund**
The income from this fund is used for the RSPCA’s cat neutering scheme in London.
## **The Tubney Grant Fund**
## **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 Welfare operational and capital funds**
These funds represent legacies or donations received towards both operational activities and capital projects relating to the RSPCA’s animal welfare activities. For example, capital funds can include donations or legacies received towards capital projects at the RSPCA’s 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. Operational funds can represent regular, one-off and legacy donations that are used to fund the RSPCA’s animal centres.
The Tubney Charitable Trust provided funding to build the capacity of the RSPCA’s Farm Animal Department.
## **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, Parkside, Chart Way, Horsham, West Sussex RH12 1GY.
## **Bankers**
## **Birmingham Fund**
The National 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.
Coutts & Co Commercial Banking, 440 Strand, London WC2R 0QS
NatWest Bank, 10th Floor, 250 Bishopsgate, London EC2M 4AA
## **Investment advisers**
Barnett Waddingham, 2 London Wall Place, London EC2Y 5AU
## **Independent auditors**
RSM UK Audit LLP, 25 Farringdon Street, London EC4A 4AB
## **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.
## **Pension advisers**
XPS Consulting Limited, Phoenix House, 1 Station Hill, Reading, Berkshire RG1 1NB
**78 TRUSTEES’ REPORT AND ACCOUNTS 2022**
**RSPCA Board 2022**
## **Board of Trustees**
WHO SERVED IN 2022
**Chair** René Olivieri[3 5 10]
**Vice Chair** David Thomas[2]
**Treasurer** Karen Harley[1 3 5 6 9] Richard Booker[1 3 6]
Amanda Bringans[1 9] Kevin Degenhard[2] (re-elected to the Board 8 October 2022)
Stuart Howells[1 3] (elected to the Board 8 October 2022)
José Parry[2] (retired 8 October 2022)
Sally Phillips[2 4] (retired 8 October 2022)
Brenda Shore[2 3 4]
David Smith[1 5 10]
Imogen Walker[4] Caroline Waters[2 4 6]
Mark Wright[1] (elected to the Board 8 October 2022)
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**
## **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
The Rules of the RSPCA empower the Board to appoint committees of the Board and entrust to these committees such powers and duties as the Board sees fit. The 2022 committees are listed above. During 2022 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.
## **Patron**
Her Majesty The Queen (until 8 September 2022)
## **President**
Dr Richard Ryder
## **Vice-Presidents**
WHO SERVED IN 2022
Jane Cotton[4] (re-appointed 20 October 2022) Tom Franklin[4] (re-appointed 20 October 2022)
Stuart Howells[1 5] (until 8 October 2022)
Maria Johannessen[5] (appointed 20 October 2022)
Hiti Singh[5] (appointed 20 October 2022) Gillian Switalski[2] (re-appointed 20 October 2022)
John Tennent[1] (retired 20 October 2022)
Brian Blessed Baroness Fookes of Plymouth
Caroline Lucas Dr Brian May Chris Packham
## **Senior management**
AT 31 DECEMBER 2022
**Chief Executive** Chris Sherwood
**A member of staff taking part in a 50 Miles For Animals event, as part of the Cancel Out Cruelty campaign.**
**Chief Operating Officer** John Kerslake **Director of People and Culture** Fiona Evans **Director of Policy, Prevention and Campaigns** Emma Slawinski **Director of Engagement and Income Generation** Tracey Pritchard **Director of Strategy and Transformation** Emily Tierney **Director of Finance and Business Services** Tania Hudson **Chief Legal Officer** Ray Goodfellow
**TRUSTEES’ REPORT AND ACCOUNTS 2022 79**
**Royal Society for the Prevention of Cruelty to Animals www.rspca.org.uk RSPCA, Parkside, Chart Way, Horsham RH12 1GY**[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 2023. 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.