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2023-12-31-accounts

Trustees’ report and accounts 2023 Royal Society for the Prevention of Cruelty to Animals

Our Animal Rescue Volunteers offered 29,971 on-call hours to help animals

Our centres, together We gave animal with our branch welfare advice partners, rehomed to people on 28,483 animals 27,863 occasions

Our Inspectorate responded to 111,654 incidents reported about animals’ welfare

Our centres provided 577,227 days of care for animals needing treatment and rehabilitation

We supported more Our campaigns than 80 other animal helped drive welfare charities the introduction to care for animals of seven new we rescued animal welfare laws

We held 12 events in seven countries to help reduce severe suffering in lab animals

Our food bank partnership provided 1.3 million daily pet food meals to help owners feed their pets

More than 272,000 people gave their voices to support us in our campaigns

We gave 83,106 vital veterinary treatments* to animals in need

About 9,500 people gave us their time as volunteers

We inspired 819,620 supporters to engage with us to build a million-strong movement for animal welfare by 2030

Our micro-volunteers and Wildlife Friend volunteers gave 10,095 hours

Through research, we’re building a greater understanding of our impact on animal welfare

Our Omaze partnership raised £3.5m, enough to keep 50 inspectors on the road for a year

Our Inspectorate issued 1,251 warning notices where animals were at risk of cruelty or neglect

We attracted 61,131 generous new financial supporters

The RSPCA We piloted ways and our branches to improve our neutered environmental 64,118 animals footprint

Our cruelty and advice line received 977,834 calls – one call every 32 seconds

We dealt with We prosecuted Our wildlife centres 16,722 complaints 1,100 animal took in 7,456 wild about animals cruelty cases – animals, while also who were the highest number responding to the abandoned since 2019 avian flu outbreak

WE ACHIEVED SO MUCH IN 2023. BUT WE FACED EVER-INCREASING DEMAND ON OUR SERVICES – AND WE PREPARED TO MAKE SOME BIG CHANGES TO MEET THAT DEMAND.

2 TRUSTEES’ REPORT AND ACCOUNTS 2023

A transformational year

WITH CHALLENGES TO ANIMAL WELFARE INCREASING EVERY DAY, PROTECTING AND IMPROVING THE LIVES OF ALL ANIMALS REMAINS A HUGE AND ONGOING TASK FOR THE RSPCA.

In 2023 alone, we tackled all the things highlighted opposite – and much, much more – together with our partners and supporters. It wasn’t easy – our centres were often full, and we had more reports of cruelty and neglect than ever.

Animals need us, so we must stay in the best possible shape to help them. Two centuries ago, the RSPCA* was established to prevent animal cruelty and promote kindness. Our purpose hasn’t changed. But the world has, so we’re changing too – just as we always have.

In 2023, we prepared for our upcoming 200th anniversary by beginning the transformation. We introduced new ways of delivering our frontline work to achieve the best outcomes for animals, developed a brighter, bolder, more welcoming brand and looked at our environmental and social impact.

War, intensive farming, loss of habitat, climate change and a cost-of-living crisis mean that animals face some of the biggest challenges we’ve ever seen. Now is the time to empower people and bring our partners together to drive change that will protect them long into the future.

As we begin our third century in 2024, we’re ready to rally everyone to help us make animal welfare one of the most pressing causes of our time and to celebrate all the positive relationships we have with the animals around us – because a world that’s better for animals is better for all of us.

This report gives a snapshot of just some of our work, achievements and challenges in 2023 – a transformational year for the RSPCA.

*Originally the SPCA – Queen Victoria gave us our ‘Royal’ status in 1840.

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“MY PETS ARE MY FAMILY. I’VE STRUGGLED

TO FEED THEM AND HAVE GONE WITHOUT TO MAKE SURE THEY DIDN’T GO HUNGRY. GETTING HELP MAKES SUCH A DIFFERENCE.”

Those are the words of a woman who relied on our pet food bank scheme to help feed her precious pets in 2023. She’s just one of many thousands who have faced stark choices over recent years. During the pandemic, our local teams quickly spotted the impact on animals of growing financial hardship in communities. They began the scheme to help people keep their pets. But, as the cost-of-living crisis took hold, demand soared throughout 2023. Sadly, we saw more animals abandoned.

To help owners keep their animals, we committed £1.5 million to our pet food bank partnership. Our frontline and branch teams worked with food bank projects across England and Wales to supply donated pet food wherever it was needed. We developed an online cost-of-living hub, signposting owners to their nearest pet food bank and offering practical advice for anyone struggling with vet bills. We also ran community events for owners to have pets checked at mobile clinics, with advice, flea and worm treatments and other petcare necessities on offer.

“I used to feel a bit of shame going to get free food,” says decorated army veteran Mark Smith, who needed help to feed his therapy dog Charlie. “But it isn’t a place where you are judged. I would urge anyone who is struggling to seek this support for their beloved pets.”

“I used to feel a bit of shame going to get free food. I would urge anyone... to seek this support for their beloved pets”

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IMPACT OF OUR
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We delivered more than 1.3 million daily pet food meals to food bank projects and other community hubs.

Working with Dogs Trust, Battersea and Cats Protection, we secured pet food donations from manufacturers for distribution through Fareshare’s network of community groups.

People worried about their pets turned to our online advice: we recorded 25,066 views for our cost-of-living page, 63,685 for our Find a pet food bank page and 286,605 for our page for people seeking help with vet bills.

Message from our Chair
6
Message from our Chief Executive
7
Our strategy
8
Our fve priority areas
10
Rescue and care
12
Advocacy
16
Prevention
18
Support
20
Organisational effectiveness
22
Working together
24
Environment
26
Structure, governance and management
28
Financial review
39
Independent auditor’s report
44
Accounts
46
Purpose of funds and principal addresses
79
RSPCA Board 2023
80

TRUSTEES’ REPORT AND ACCOUNTS 2023 5

MESSAGE FROM OUR CHAIR

WELCOME TO THE 2023 RSPCA ANNUAL

TRUSTEES’ REPORT AND ACCOUNTS .

I am delighted to introduce myself as the new RSPCA Chair, taking up the role that was previously so ably held by my predecessor René Olivieri until the end of 2023.

As someone who has had a lifelong commitment to animal welfare, and who has long admired and championed the RSPCA, I am thrilled to be coming on board at such an exciting time – our landmark 200th anniversary year.

Looking back over 2023, it was another momentous year for the RSPCA. We reflected with pride on our 200-year heritage, while also preparing to move forward with optimism and purpose into our third century.

All our achievements over the last 200 years are thanks to the enduring support we have always had from the animal-loving public. Hundreds of thousands of supporters give us their time, money and voices every year. They agree with us that animals matter, and that human and animal welfare are inextricably linked. We intend to build on that huge resource of public compassion and make animal welfare one of the greatest causes of our time, across all communities.

We know there’s a real desire among individuals and families across England and Wales to get involved and do their bit for animals, so we’ve introduced more and more volunteering opportunities for every kind of person, whether it’s micro-volunteering to support our campaigns through their phones or doing practical things to protect and celebrate the animals all around us. We launched our Wildlife Friends initiative for the Big Help Out last year to celebrate the King’s Coronation, joining 200 other charities to champion and promote volunteering. This resulted in an amazing 1,000 people (increasing to 2,000 by the end of the year) signing up to be Wildlife Friends, doing small things that make a big difference for our wildlife. Those who volunteer, fundraise, campaign or speak up for animals all play their part to make a real and tangible difference, and we are so grateful that more than 800,000 people who really care were there for us and for animals in 2023.

“We know there’s a real desire among individuals and families across England and Wales to get involved and do their bit for animals, so we’ve introduced more and more volunteering opportunities for every kind of person”

We will be making the most of our 200th anniversary, ensuring it acts as a pivotal moment for us to come together and engage more people than ever in our mission to create a better world for every animal.

I would like to take this opportunity to thank everyone who has supported us over the past year. In particular, I want to thank all our dedicated teams, our staff, our volunteers, all those who run our branches and who give their time and dedication to help ensure we are there for every kind of animal, whenever we are needed. The RSPCA is an incredible organisation and would not be here were it not for all our wonderful supporters. My thanks go out to all of them. I have absolutely no doubt that – together – we’ll go on to achieve even more for animals in the years ahead.

Claire Horton CBE RSPCA Chair

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TRUSTEES’ REPORT AND ACCOUNTS 2023

MESSAGE FROM OUR CHIEF EXECUTIVE

2023 WAS A TRANSFORMATIONAL YEAR FOR THE RSPCA. WE’RE MOVING INTO OUR THIRD CENTURY WITH A NEW LOOK, BOLD IDEAS AND RENEWED HOPE THAT WE CAN MAKE ANIMAL WELFARE A CENTRAL CAUSE OF OUR TIME AND INSPIRE MORE PEOPLE TO HELP CREATE A BETTER WORLD FOR EVERY ANIMAL.

At the end of the year, we said goodbye to René Olivieri, who has been an outstanding Chair of the RSPCA Board for the last four years. René steered the Board through the unprecedented times of the pandemic and the ongoing cost-of-living crisis. During this time, we also launched our ambitious 10-year strategy, Together for animal welfare . We are incredibly grateful to René for his unfailing commitment, insight and dedication and we wish him well for the future.

I would like to extend a heartfelt welcome to new Chair Claire Horton CBE, who will guide us as we begin our landmark 200th anniversary year. Claire has an impressive background in animal welfare and the charitable sector, including as former Chief Executive of Battersea for 11 years. She knows our challenges and our purpose very well.

The RSPCA is the world’s oldest and largest animal protection organisation. Our founders met in a coffee shop 200 years ago and determined that they would change animals’ lives. They created what became the RSPCA, sparking a movement that spread around the world. We have so much to celebrate in what we have achieved for animals and people since then. For two centuries, we have been changing industries, laws and minds in order to build a better world for animals.

Yet now they face, arguably, some of the biggest challenges in our history. Intensive farming, extreme breeding, the avian influenza pandemic, climate change, habitat destruction, global conflict, the lingering effects of the pandemic and economic inequality cause suffering to animals on farms, in the wild, in laboratories and in our homes. The RSPCA has much to do against this backdrop.

“Everyone can do something to help change hearts, minds and behaviour”

Nevertheless, 2023 was a year of real optimism, and I’m so proud of the positive impact we made. Where owners struggled to care for their pets during hard times, we joined with partners in local communities to provide millions of pet food meals and veterinary vouchers. After 100 years of campaigning, a ban on the live transport of animals exported for fattening and slaughter inched closer. We established RSPCA Europe, an EU-based legal entity that will give us continued influence over EU animal policy and laws, post-Brexit. And, as we push towards our 2030 target to rally a million-strong movement of animal welfare champions, I am thrilled to report that we connected with a record 800,000+ supporters. By bringing people together like this, we know we can build a better world for animals. Everyone can do something to help change hearts, minds and behaviour.

That’s the message that came through very strongly as we looked at refreshing our brand for today’s world. To grow levels of trust and support, to boost our income so that we can be here to help more animals, and to carry on making fundamental change, we must reach out into communities and inspire everyone to create a better world for every animal.

This report gives only a snapshot of some of the incredible achievements of our Board, staff, volunteers, branches, partners and supporters in 2023. I thank them all for their dedication, hard work and belief that, together, we can create that world.

Chris Sherwood RSPCA Chief Executive

TRUSTEES’ REPORT AND ACCOUNTS 2023

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Our 2021–2030 strategy: Together for animal welfare

IN OUR BICENTENARY DECADE, WE ARE DELIVERING OUR AMBITIOUS 10-YEAR STRATEGY, TOGETHER FOR ANIMAL WELFARE . WE WILL REFRESH THIS STRATEGY IN 2024,

TO REFLECT HOW MUCH WE AND THE WORLD HAVE CHANGED SINCE WE LAUNCHED IT.

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:

2. End the illegal puppy and kitten trade in the UK

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

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Our five priority areas

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Our work to deliver our strategy falls into five priority areas.

This report highlights just some of our progress and the challenges we faced in each of these areas in 2023.

Measuring our progress

We collect and compare annual data in all these areas and have shared some of our statistics throughout the report. In 2024, we’ll deliver an ambitious change agenda, which will include greatly improved knowledge management, data quality and analysis across the whole of the RSPCA. This will give us clearer organisational metrics to include in future reports.

RESCUE AND CARE

We rescue and care for animals in need

2023 priorities

Introduce triage methods to prioritise animals suffering cruelty and neglect

Manage workload and capacity in our frontline services

Roll out Animal Voice – our science-informed tool to assess and measure animal welfare – across more species

Lead a joined-up, cross-sector response to the cost-of-living crisis

ADVOCACY

We change attitudes, behaviours and laws

2023 priorities

Launch themed campaigns for legislative change and to start conversations about people’s relationship with animals

Boost our public campaigning, and grow our animal welfare movement

Encourage people to choose higher-welfare food ingredients and Eat less, eat better

Start initiatives to improve human–wildlife interaction

Review our farmed animal welfare assurance scheme RSPCA Assured

Increase our calls to phase out the use of animals in research and to reduce severe suffering

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PREVENTION

We inspire compassion and kindness towards all animals

2023 priorities

Take a three-tier approach to prevention of cruelty:

•[work with perpetrators when ] cruelty has happened to prevent it happening again.

Support owners to keep cared-for pets in loving homes when times are hard

SUPPORT

We grow our support and income

2023 priorities

Create a new volunteer experience that promotes volunteers’ personal development while they donate their time

Offer more ways for a greater diversity of people to engage with us

Review our brand strategy to communicate a clear message about what we stand for and to improve the way people see us and our impact

Begin an investment programme to grow voluntary income

ORGANISATIONAL EFFECTIVENESS

We strive for excellence in all that we do

2023 priorities

Invest in a new financial planning and analysis system for more effective financial management

Roll out our data road map and embed data foundations to improve data quality and analysis

Provide tailored training across the RSPCA and our branches on data protection

Review the RSPCA’s rules

Coordinate compliance and assurance activities and develop new governance, risk and compliance frameworks

Develop and publish our Environmental, Social and Governance (ESG) policy, with sustainability and ESG reporting plans

Redesign our website to provide a more personalised, user-focused experience

Develop a new intranet

Begin strengthening our partnership with RSPCA branches with a new governance framework and rules

Support our Animal Journey programme with a new digital ecosystem

Reduce the complexity of our digital communications with an application programming interface layer

Build a diverse, collaborative, healthy and safe workforce, and reward people for their contributions

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It was a real team effort

“OUR FIRST INSTINCT WAS TO CALL THE RSPCA”

SAYS JANET EVANS, ABOUT THE DAY HER FRIEND KAREN FOUND A SICK SEAL PUP.

Karen spotted the seal in an inaccessible spot when walking her dog. She called Janet, who alerted us. Karen kept watch on the beach, while Janet and grandson Finn drove to meet our Inspector Clare Wilson and guide her over the sand dunes to the exact spot.

“Clare was brilliant,” remembers Janet. “She knew what to do and who to call. She also explained everything to us – my grandson was very interested.”

As there’d been no sign of the seal’s parents for 24 hours, Clare – with Karen on hand to help – got him into a special bag, and all three women lifted him back up the dunes. Clare then booked him a place at a local vets, where he was treated for mouth rot. Later, volunteers at a nearby aquarium nursed him back to full health over four months, before releasing him back into the sea.

“I was very impressed that Clare could come to a quite complex situation like this, with all the expertise at her fingertips to rescue him and organise the next steps for his care,” says Janet. “We were so pleased he made a full recovery, thanks to everyone who got involved. It’s great to know that each one of us was able to make a real difference to this animal’s life.”

“We were so pleased he made a full recovery… each one of us was able to make a real difference to this animal’s life”

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IMPACT OF OUR
RESCUE
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Animals at risk got the help they needed when we dealt with 111,654 reported incidents. This was 19.6 percent fewer than 2022, perhaps reflecting our effective animal welfare messaging.

We took in 50,683 animals, an increase of 2.4 percent.

907 convictions secured from the 1,100 cases we prosecuted showed animal abusers that their crimes will be punished.

With demand often outstripping our Inspectorate’s capacity, instead of attending fledgling incidents, which traditionally prompt a large number of callouts, we advised people on what to do, meaning the birds got any help they needed quickly, while our rescuers focused on cruelty and other cases.

We boosted our team of animal rescue volunteers by 45 percent to 256, and broadened their scope. Their work – rescuing and transferring animals, pulling together volunteer data or training to fit specialist equipment, for example – freed up thousands of hours for our Inspectorate to reach even more animals in need.

Triaging methods like these meant we could reach more animals in need; which was also important for all our rescuers’ health and wellbeing.

CHALLENGES

We had a number of challenges arising at once, including the cost-of-living crisis, the increase in pet ownership following the pandemic, increased veterinary costs and more animals being abandoned. This led to increased demand for our services and put huge pressure on resources for the RSPCA and its branches.

WHAT’S COMING UP

In line with our strategy commitment to focus on those animals most in need, and to harness public compassion to help us drive animal welfare forward, in 2024 we’ll:

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Harrison’s homecoming

“HE’D NEVER INTERACTED WITH OTHER EQUINES.

WE INTRODUCED HIM GRADUALLY, AND HE BEGAN TO ENJOY LIVING WITH A SMALL HERD...”

Harrison had been neglected, abused and finally abandoned. When he arrived at our Felledge Equine Centre, he was sick and underweight, with significant inflammation, liver damage, swelling from oedemas, a burnt nose, a tethering injury and painful ulcers on his eyes.

Using our Animal Journey assessment tool – which allows us to understand the individual needs of each animal in our care – we created a personalised care plan for Harrison.

“We spent a lot of time nursing him, treating his injuries and walking him out in hand (by his reins) to reduce the swelling,” says centre manager Emma Tallentire. “Once he was stronger, we began the process of socialising him, as he’d clearly never interacted with other equines. Over a long period, we introduced him gradually, and eventually he began to enjoy living with a small herd of geldings.”

After months of patient care and gentle handling, Harrison was almost back to full health. But one of his eyes still needed constant monitoring and treatment. The team knew the best thing for Harrison was to be in specialist hands permanently, so they rehomed him with partnership charity Redwings Horse Sanctuary. There, on-site vets will continue to check and treat him. “Now his future welfare is secure,” says Emma. “Harrison will stay at Redwings and be expertly cared for throughout his life.”

“We spent a lot of time nursing him, treating his injuries and walking him… to reduce the swelling. Now his future welfare is secure... throughout his life”

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IMPACT OF OUR
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We prevented unwanted births by neutering 64,118 animals.

To give animals the best chance of being reunited with their owners if lost or stolen, we microchipped 29,954 of them.

We took in and cared for 2.4 percent more animals, including 8,794 dogs, 22,469 cats, 2,553 rabbits and 498 equines.

After PDSA took over public veterinary work from most RSPCA animal hospitals, our in-house vets could triage and treat 13 percent more animals rescued by our frontline teams.

A collaborative approach on biosecurity at our wildlife centres protected animals and our teams in a complex year of avian flu.

Our Inspectorate, behavioural and veterinary teams worked more closely together on complex cases, making sure those animals most in need got the right treatment, as quickly as possible.

Following the Government decision to ban XL bully-type dogs in England and Wales, we worked tirelessly to identify animals who could be rehomed and find them homes before the ban came into force.

CHALLENGES

With unprecedented demand at our animal centres, there wasn’t capacity for the significant training needed to continue rolling out our Animal Voice tools – where animals’ individual needs are assessed to determine tailored care packages – as quickly as we wanted.

Though we work much better with the veterinary profession – including running our vet conference for a second year – serious capacity constraints in their ranks makes access to vets an issue for our rescuers.

Though we campaigned against breed-specific legislation, XL bully-type dogs were banned. We’re working hard to minimise the harms of this new law wherever we can.

WHAT’S COMING UP

In line with our strategy, the RSPCA has a commitment to care for animals using the latest evidence, knowledge and good practice. In 2024 we will:

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The Super Campaigners helping us protect animals

“...YOU FEEL YOU ARE REALLY HELPING TO SPREAD THE WORD…”

Our 2023 Animal Kindness Index showed there is no doubt that animal welfare matters to the public. But there is a gap between what people say and what they do – we still see pets being abandoned, or flat-faced puppies being bought, for example. That’s why we need our incredible Super Campaigners.

Judith Vaughan cares about animal welfare, and she does something positive about protecting animals. A volunteer at an RSPCA cattery, she is also an RSPCA Super Campaigner. Because of all she’s done for animals, Judith won our 2023 Volunteer Impact Campaigner of the Year award.

Armed with laptops, phones, facts and passion, our Super Campaigners – drawn from all walks of life – are out there helping us push for change in attitudes, laws and behaviours.

“It’s a great way to give extra support to an amazing organisation,” says Judith. “It makes you feel you are really helping to spread the word. We’re given tasks to complete in our own time. They’re not hard and we get great support every step of the way.”

We give our Super Campaigners the tools and skills – in areas such as written communication and political knowledge – to actively improve animal welfare in their communities by posting on social media or distributing leaflets and posters locally.

“I see so many volunteers doing such amazing work around me,” says Judith. “I’m really thrilled to be part of this and to be able to do something constructive for animals.”

IMPACT OF OUR ADVOCACY WORK

More than 272,000 people drove our campaigns to end cruelty to animals, taking 235,000+ actions to support them.

Animals got more legal protection when seven new animal welfare laws were passed in England, including cat microchipping.

Fewer animals in labs experienced ‘severe’ suffering: there’s been a 61 percent drop following our work with partners over a decade.

Animals will continue to be protected, after the Government U-turned and decided to keep 44 EU-derived laws.

It’s now an offence to post any animal cruelty online. The Online Safety Act 2023 means internet images of animal cruelty – such as dog fighting – will be consigned to history, hopefully reducing copycat animal cruelty.

The Agriculture Act (Wales) banned snares and glue traps, preventing suffering for hundreds of cats and wildlife in Wales.

Cat microchipping will be compulsory from 2024 in England, meaning cats can be reunited with their owners if they get separated for any reason.

We incorporated RSPCA Europe, an EU-based legal entity. This means we’ll still have a voice in shaping all areas of EU animal policy and law, post-Brexit.

CHALLENGES

The Government was under pressure to act after fatalities were reported involving XL bully dogs. Despite advice from the RSPCA and other experts, it added the breed to the S1 Dangerous Dogs Act, making it the first to be added since 1991.

The Government scrapped its Kept Animals Bill, which would have banned live export of animals for fattening or slaughter. It would also have tackled puppy imports and dog theft. These issues are being pursued by Private Members’ Bills instead.*

The Genetic Technology (Precision Breeding) Act will permit the marketing of products from gene-edited farmed animals in England, raising anImal welfare and ethical concerns.

*The UK finally banned live exports in May 2024

WHAT’S COMING UP

In line with our strategy commitment to consign harmful and regressive practices to history and to harness public policy and attitudes to improve animals’ lives, in 2024 we’ll:

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WINS IN 2023 FOR ANIMAL WELFARE

From one young person to many more

“...PEOPLE ARE ABOUT TO BAKE DOG TREATS BECAUSE OF A PAGE I CREATED…”

Our brilliant new animal welfare education website didn’t just make itself – young people themselves were right at the heart of creating ideas and content.

One young home-education learner who loves working with technology got involved in trialling some early ideas and then helped to proofread, upload and publish a fun family activity showing how to bake healthy dog treats at home.

“I didn’t know web development could be a job and this is what is involved,” says the young person. “It’s exciting to think other people are about to bake dog treats because of a page I just created.”

“Our user experience sessions to develop the website allowed the young people involved to reflect on what it means to have or not to have responsibility,” says prevention and education project lead Lee Read. “They also opened an honest conversation with adults, who said that buying animals to teach children responsibility doesn’t necessarily work – actually it can lead to a sort of ‘learned helplessness’ where children see that someone else will look after the animal. This has prompted us to develop a new learning programme to encourage responsibility towards animals, without needing to own a pet.”

“Our user experience sessions… allowed the young people to reflect on what it means to have or not to have responsibility”

IMPACT OF OUR PREVENTION WORK

Our resources designed to change attitudes and behaviours towards animals got downloaded on our new education website by 85 percent of users – up from 40 percent on the old site.

We influenced more than 360,000 young people and people who work with them to think about animals’ needs through our digital and face-to-face programmes.

We helped 40,000 young people to develop compassion and kindness for animals at our animal centre-based community education hubs.

At our education hubs, 60 percent of the programmes delivered were deemed to have a high impact by observers (teachers, NHS workers or police, for example); such as a six-week course that inspires compassion and empathy in young people at risk of not understanding animals’ needs.

We recruited an advisor with crime and drug rehabilitation expertise to support police, NHS and social services teams reporting concerns about someone’s attitude and behaviour towards animals.

We delivered bespoke interventions for people who had harmed animals – such as a 14-year-old offender referred to us by police and a young person referred by a sibling – to help them develop compassion and empathy in ways that they could understand.

We began to collaborate with young people to shape our 2030 strategy with aspirations that matter to them.

CHALLENGES

We focused our resources on designing our new education website for seven–11 year olds, primary phase teachers and non-formal/home educators. We therefore had less engagement with post-primary educators.

Due to other priorities, we did not develop some partnerships and joint initiatives at the pace we would have liked.

WHAT’S COMING UP

In line with our strategy commitment to prevent abuse, neglect and exploitation, to inspire kindness and compassion and to engage everyone to understand how they can make animals’ lives better, in 2024 we’ll:

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Proud dad and daughter step out for animals

“...I RAN FOR THE RSPCA BECAUSE I WANT TO STOP CRUELTY TO ANIMALS…”

Ayva Fleck, pictured below, loves all animals, and she put in the hard yards to prove it this year.

Her dad, Liam, has been running in the Great North Run (GNR) for over 20 years, and eight-year-old Ayva is just as keen, running as a junior. “We always let Ayva choose the cause we’re going to run for,” says Liam. “This year, she was quite clear it would be for the RSPCA.”

“I ran for the RSPCA because I want to stop cruelty to animals,” says Ayva, who tackled the 1.25-mile mini run on a sweltering day. Just to add to their supreme effort, she and Liam ran in fancy dress.

Proud mum Helen says Ayva loves all animals. “She really is so kind-hearted and always wants to give to animal charities. She raised over £400 for the RSPCA that day.”

Ayva wore her well-earned medal for days after the run and even got an award at school for all the fundraising she does.

“I love every type of animal,” she says. “I’ve done things to support horses, sheep, goats and all sorts. And I love my pet hamster Coco.”

It’s thanks to Ayva – and the hundreds of thousands of animal lovers like her who give us their support – that we can carry on fighting cruelty and building a better world for animals of every kind.

“We always let Ayva choose the cause we’re going to run for. This year she was quite clear it would be for the RSPCA.”

IMPACT OF OUR SUPPORT WORK

We rescued, cared for, spoke up for and protected many thousands of animals, thanks to the 819,620 people who gave us their time, money and voices .

We recruited 61,131 generous new financial supporters who want to help fund our work to give animals the lives they deserve.

We received £46.6 million in donated income, allowing us to plan ahead and continue protecting animals during uncertain times.

Our social media posts reached people’s feeds more than 4 million times, attracting 10,808,789 likes, comments, shares and clicks about our animal welfare messaging.

We connected with 79,965 more people (compared to 2022), who want to give their time, money or voices to help improve animals’ lives.

We harnessed the public’s desire to help us in our work for animals, and beat our own fundraising forecasts, with more than 420,000 generous supporters making regular gifts.

More supporters promised to leave us a gift in their will, up from 1,269 in 2022 to 2,187.

We launched a new online shop selling a range of appealing new products to more accurately reflect our brand and help increase revenue for our work.

We launched the new digital Wildlife Friends programme, designed to raise awareness and encourage the public to take action for wildlife.

CHALLENGES

We had to delay our online shop revamp by six months, but we launched it towards the end of the year, trialling a small range of products initially.

The cost-of-living crisis and difficult economic environment made mass fundraising challenging at the start of the year. Two very successful appeals helped us overcome this.

WHAT’S COMING UP

In line with our strategy commitment to engage more people in animal welfare and encourage more people to support us with their time, money or voice, in 2024 we’ll:

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22 TRUSTEES. REPORT ANDA¢COUtIt82023

WINS IN 2023 FOR ANIMAL WELFARE

Combining efforts in communities

We launched our first Equity, Diversity and Inclusion (ED&I) plan. Being able to integrate into all communities will allow us to reach more people and improve animals’ lives.

We overhauled our 90-year-old rulebook – a vital move to take us forward into our third century of protecting animals’ lives.

We consolidated our financial turnaround and outperformed our budget in the year, which will help us to continue protecting animals long into the future.

CHALLENGES

“...DUE TO RISING VET COSTS WE THOUGHT WE’D

HAVE TO REDUCE THE NUMBER OF CATS WE

COULD HELP. THE FUND WAS A GAME-CHANGER…”[*]

In 2023 the cost-of-living crisis impacted our local RSPCA branch partners, forcing some to feel they had to limit what they could offer in communities.

To support them, we began a 12-month pilot to contribute towards the first 90 days’ care for any animal rescued by our Inspectorate and taken in by branches. Our Care Contribution Fund allowed them to better plan their income and resources, and continue their vital work for animals locally.

For example, the Cat Hub Project, developed and funded by four branches in the Teesside area, rehomed more than 270 cats in 2023, supported by a bank of 83 volunteer foster carers. With veterinary costs on the rise, a contribution from the fund meant all four branches could continue to support the hub, while also focusing on other animals in need.

A contribution from the fund gave our Brighton Branch the confidence to expand its behavioural provision for traumatised animals. And our Manchester Branch found it could continue to accept any animal, whatever complex veterinary or behavioural needs it may have.

More than 80 RSPCA branches signed up to the scheme, which will be reviewed in 2024. The project is helping us listen to branches and learn how we can best work together to protect animals in communities in future.

Our staff engagement survey identified four areas of focus: building trust across all teams, better collaboration, equality of opportunity to succeed and wellbeing for frontline teams. We now have an improvement plan in place for these areas. Persistently high inflation increased the cost of many key supplies and services.

The cost-of-living crisis meant a few branches had to limit their offer, including closing animal establishments. The crisis also increased the demand on our services.

To protect key resources, our digital transformation programme prioritised projects in line with key 2024 deliverables.

WHAT’S COMING UP

In line with our strategy commitment to achieve our ambitions through strong governance and leadership, with a modern, inclusive culture and robust financial foundation, in 2024 we’ll:

*All quotes are taken from feedback on the fund

“Solid budgetable income is helping us increase the number of animals we can offer to help”[*]

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11 24 TRUSTEES. REPORT ANDA¢COUtIt82023

WHY PARTNERSHIPS MATTER

Keeping pets in loving homes

“...TO IMPROVE PETS’ WELFARE IN HOMES,

WE’RE USING THE STRENGTHS AND SERVICES UNIQUE TO EACH CHARITY…”

These are challenging times, both for pet owners and for animal charities. But, by sharing local knowledge, skills and resources with trusted partners, we can make a real difference for animals and owners in need. One example is our new partnership with Cambridgeshire-based Woodgreen Pets Charity. Our Inspectorate works closely with Woodgreen’s community outreach team to identify and reduce the risk of pets being neglected in the area.

“We work together to improve pets’ welfare in homes, using the strengths and services unique to each charity,” says Woodgreen’s Chris Bennett. “Our RSPCA colleagues are often the first to see when something is going wrong for pets in a household. They refer those pet owners to us and we work hands-on with them to find practical ways to improve their pets’ welfare. This early intervention helps prevent suffering and keep pets in loving homes where they can thrive.”

“Woodgreen’s community outreach team offers invaluable support to pet owners,” adds our head of operational partnerships Sakura Anderson. “That expertise and support means we can work together to help people and their animals in times of great need.”

“...early intervention helps prevent suffering…”

Protecting animal welfare is not something that happens in isolation – it’s everyone’s concern. We can achieve so much by working with others, and our partnerships cover an incredibly broad spectrum from small local charities to large corporate concerns.

WINS IN 2023 FOR ANIMAL WELFARE

Below are just some examples of successful partnership work in 2023.

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ENVIRONMENT_ 26 TRUSTEES. REPORT ANDA¢COUtIt82023

WHY THE ENVIRONMENT MATTERS

Win–win for animals and the climate

“...WE’LL HELP MORE ANIMALS, WHILE REDUCING OUR CLIMATE IMPACT…”

With water at the centre of the climate crisis, its efficient use at our wildlife centres is critical. Our West Hatch Wildlife Centre provides vital rehabilitation facilities for hundreds of injured or sick water-based animals and birds every year, including 78 seals in 2023. But, increasingly, there will be times when water supply is scarce.

With a circular water treatment system already in place, the West Hatch team worked with our environmental advisor Lara Murphy to find ways of improving water security while also protecting the environment.

“We identified efficiency measures and how best to reuse waste water safely,” says centre administrator Sarah Bulpin. “We’re now looking at the quality of the recycled wastewater and ensuring it is safe for animals before reusing it. If all goes well, the new system will save us money to help more animals, while reducing our environmental and climate impact. So it’s a win–win for animals and the climate.”

“This is an important pilot project,” adds Lara. “We use a lot of water at our centres and we are hoping this scheme will lead the way.”

As an animal welfare charity, our focus is on animals and the impact people’s actions can have on their lives. But we know the environment should be a key part of our work too. Animals and humans are part of the same delicately balanced ecosystem, and all elements of that system – including our precious shared environment – need to be protected. To build a better world in which both animals and humans thrive, we must understand and manage the RSPCA’s own contribution to environmental degradation, climate change and biodiversity loss. We have a lot more to do, but we took some important steps in 2023.

WINS IN 2023 FOR ANIMAL WELFARE

We undertook a materiality assessment to understand the environmental issues that matter most to our stakeholders, (this also included social and governance matters, covered elsewhere in this report).

We began to pilot environmental improvements, such as adding an electric vehicle to our fleet and using water more efficiently at one of our centres.

CHALLENGES

We need to improve the availability and collection of highquality key performance indicator data (energy, water, waste) to quantify our environmental impact, enable us to set targets and track performance.

We need to find ways to have a positive environmental impact across all our activities, while maximising cost savings and supporting our main purpose.

Current areas to address include a focus on environmental compliance and high water use at our centres.

WHAT’S COMING UP

In 2024 we’ll:

“...this scheme will lead the way”

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Structure, governance and management

Our charity constitution

The Royal Society for the Prevention of Cruelty to Animals (RSPCA) is a charity registered in England and Wales.

It was founded in 1824 and incorporated by the RSPCA Act 1932.

Our registered charity number is 219099.

Our charitable objects (our aims) – as set out in the Act and our rules – are to:

Public benefit

We are confident that our work to prevent cruelty and promote kindness to animals provides a public benefit, as set out by Charity Commission public benefit guidance and the Charities Act 2011.

Humans and animals are vital components of a delicate and complex ecosystem, and we depend on animals for many things. But the consequences of human actions and interventions – industrialisation, intensive farming, war, cost-of-living crises and climate change, for example – may often impact negatively on animals’ lives and on the world we share with them.

We know that the public wants animals to be protected from unnecessary harm. The vast majority of people who take part in our annual RSPCA Animal Kindness Index make it clear they want them to be treated with kindness and compassion at all times.

Two centuries ago, the RSPCA was founded on the basis of a similar public concern for animal welfare. For 200 years, working both for and with the public, we have promoted humane attitudes towards animals. We’ve helped change legislation and behaviour that affects them, while also providing direct intervention when animals need rescue and care. Our work therefore provides a public benefit to human communities and to our shared world.

Our structure

Our Board of Trustees

The legal responsibilities of our trustees are clearly defined in law and regulated by the Charity Commission.

They include:

Who our trustees are

Training and performance

Key facts

Trustee training and development

The RSPCA understands that its most important resource is its people. As well as employees and volunteers, Board trustees are committed to maintaining a culture of excellence in terms of their own performance. In line with the Charity Governance Code principle 5, we have developed a trustee training and development framework to allow trustees to ‘work as an effective team having the appropriate balance of skills, experience, backgrounds and knowledge, to make informed decisions’.

Trustee training and development is part of a cycle of events (listed below) enabling both individuals and the Board as a whole to work effectively.

Training and development cycle

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Our trustee training and development framework is reviewed and updated regularly.

Induction

All new trustees take part in an induction programme that includes:

We ensure an annual budget for formal training and development for trustees and committee co-optees (see below). All are required to keep their existing skills and knowledge up to date and develop new ones, where appropriate.

In addition to the formal training we provide, we encourage:

Training needs may be identified in any of the following ways:

There is a formal structured training programme for all our trustees, including refresher training for those returning to the Board after a break in service. We also arrange training where needs are identified for committee co-optees.

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 including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland). 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:

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.

Scheme of delegation

Our Board is responsible for the RSPCA’s affairs, funds, governance, property and overall strategic aims. As set out in a detailed scheme of delegation, it delegates day-to-day operations and administration to the executive leadership team, senior leadership group and wider staff, through the chief executive. A number of Board committees focus on strategy, performance and assurance, allowing the Board to maintain oversight over its delegated authorities in line with its legal duty to ensure the RSPCA operates appropriately to promote its charitable objects. Details of committee terms of reference are shown over the page.

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Committee: Finance, Audit and Risk (FARCOM)

Role

Oversees

Members/attendees

Committee: Investment

Role

Oversees

Members/attendees

*Members are marked with an asterisk

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TRUSTEES’ REPORT AND ACCOUNTS 2023

Committee: Animal Welfare

Role

animal care and rehoming

Members/attendees

Committee: Governance and Nominations

Role

Members/attendees

Committee: Branch Affairs Committee (BAC)

Role

Oversees

Members/attendees

Committee: Remuneration

Role

Considers

Members/attendees

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31

Our subsidiaries

Our branches

Across England and Wales, RSPCA branches work in local communities to protect, care for and rehabilitate or rehome animals in need. This vital network of thousands of dedicated volunteers not only makes a huge difference to individual animals’ lives, it also helps us spot and respond to emerging trends on the ground that may have a negative impact on animals (for example, a rise in animal abandonments, due to the pandemic-driven escalation in pet ownership and cost-of-living crisis).

What our branches do

Key facts

*A new Charitable Incorporated Organisation (CIO) structure will be implemented, following rule changes agreed at the 2023 AGM. The first five branch CIOs were registered in February 2024 and more will follow throughout the year.

At the end of 2023, there were 137 RSPCA branches.

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Our branch partnership agreement

While individual branches and the RSPCA determine for themselves how they operate, they commit to working together through arrangements set out in our branch rules and branch partnership agreement.

Though RSPCA branches vary in size and scale of operation, the RSPCA network is a federated organisation, with the main charity being the umbrella organisation. It ensures that branches are run appropriately, that animal welfare standards are observed across the network and that the brand and reputation of the RSPCA are protected. It takes into account any feedback provided by branches through the BAC and other agreed mechanisms.

The RSPCA offers the following to branches, at no cost:

Grants policy

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 to help them 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 36 fundraising complaints in the last reporting period. The complaint number for the previous reporting period was 50. The reporting period for fundraising complaints was 1 April 2022 to 31 March 2023.

In 2023, out of a total of 96 incidents reported to the Data Protection (DP) team, three were in relation to RSPCA fundraising activities. In total, the DP team recorded 46 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 notification; however

continued on page 35

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----- Start of picture text -----
Risk Mitigation
----- End of picture text -----

Risk Mitigation
Cyber attacks destabilise
our core systems or result
in thef of data		 •We have migrated our core services to industry-leading ‘blue chip’ providers, enhancing the robustness
of our systems. We are in the process of migrating our legacy systems, further enhancing our security.
•We have introduced two-factor authentication, DMARC validation and remote back-ups across our
devices to limit our exposure to ransomware and other malicious sofware.
Risk that security breaches
endanger the physical safety
of our people, animals in
our care or our operational
efectiveness		 •Each site manages its own security and we have a range of devices and training programmes in place
across the RSPCA to protect our people. A new working group is being set up to introduce consistency
and share best practice, as well as to provide oversight to senior leadership.
•Horizon-scanning is in place and links are maintained with law enforcement to identify where the
RSPCA or animals in our care may be the target of known criminal activity or protest.
Internal or external fraud
could result in fnancial
losses, reputational damage
and disruption to service
delivery		 •Comprehensive policies and procedures are in place, and there are appropriate approval limits and
segregations of duty in place. Our fnance team is trained to identify and investigate anomalies.
•Our ability to identify incidents and trends will be further enhanced by a new system being introduced
in 2024. We are also tendering an internal auditor to review our processes and identify any areas of
concern or appropriate enhancements.
A lack of consistent, quality
service delivery could result
in poor animal welfare
outcomes for animals in
receipt of our services		 •Signifcant personnel expansion increases our capacity in key strategic areas including veterinary,
logistics and welfare oversight.
•New systems are due to come online in 2024, increasing our ability to track animals through the system,
ensuring consistent and optimised outcomes.
•A successful summer action plan has improved our ongoing work patterns and informed proposals
for a new scope of service that will help us prioritise animals most in need.
•We are actively designing and building future-proof facilities to better provide for the welfare of dogs in our care.
•New care contribution and capacity funds for branches empower our partners in the branch network
to improve the care they are able to provide.
RSPCA Assured is unable
to ensure the welfare of
animals on member farms		 •A robust inspection criteria, timetable and assessment regime enables us to efectively assess the welfare
of animals.
•Biosecurity protocols are in place, including personal protective equipment and vehicle disinfection
kits, to prevent the spread of disease that could block us from inspecting sites.
RSPCA Trading Limited
is unable to achieve
sales targets		 •Sales are vulnerable to markets, subdued by continuing infationary pressure and future economic uncertainty.
•To enhance our market position, a new website was launched for Q4 2023.
•A decision was taken to prioritise our range of fea and worm treatments and partner pet insurance,
leveraging our brand to increase penetration.
• Our product approach is being revised to capitalise on the RSPCA’s 200th year.
We are unable to continue
fnancing the activity
required to achieve our
ambitious 2030 strategy		 •A strategic refresh will take place in 2024, focusing on fnding a pathway to sustainably meet the
priorities and ambitions set out in our 2030 strategy.
•Financial controls and oversight will be improved by the adoption of new industry-leading fnance
systems and investment in key personnel.
•A third-party audit has identifed a number of actions that will further increase our security as they
are completed, including centralising our billing process and increasing our oversight of VAT obligations
and restricted fund payments.
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		 •A third-party audit was undertaken in 2022 and priority actions have been delivered across 2023 to
reduce our people’s exposure to potential harm.
•Incident management will be modernised with the introduction of a new system scheduled in 2024,
enabling better trend analysis and monitoring.
•Professionally certifed fre evacuation plans are being introduced in 2024 to ensure standards match
best practice.
Our environmental policy
is not aligned to modern
societal expectation		 •We are engaging with stakeholders across the RSPCA to align local environmental controls and
initiatives before establishing our priorities and defning appropriate actions.
• This work will dovetail with our wider social governance and inclusion strategies.

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34

investigations may extend beyond that, depending on the complexity of the incident. One of the fundraising-related incidents, indicated to us by a sub-processor of RSPCA supporters’ data, was reported to the Information Commissioner’s Office, which resulted in an apology being sent to the individuals involved. In 2023, we noticed an increase in breach incidents with a total of 93 compared to 79 incidents reported in 2022 (increase by 17.7%) and 49 (89.8% increase) in 2021.

Performance

Our fundraising costs for 2023 were £26.7 million (2022: £22.3 million). Our income from fundraising, excluding legacies, increased by £3.5 million in 2023 to £46.6 million (2022: £43.0 million). Our aim was to maintain our income as far as possible during the cost-ofliving crisis by adapting and enhancing our fundraising offering, so that our supporters would have a valuable 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.

Risk governance

Identifying and mitigating risks is embedded across the RSPCA, with regular reviews by our executive, directors and the Board through the delegated FARCOM. Risk registers are robust, with consistent categories and assessments based on Charity Commission guidance and industry best practice. We also capture controls and relevant actions to improve our ability to mitigate the risks. Each risk and relevant action has a clearly defined owner to ensure transparency.

We have a clear plan to further enhance our risk governance framework in 2024, including introducing an annual trustee risk appetite statement and establishing an outsourced internal audit function. We also support our subsidiaries to develop robust risk management in line with our own governance structures.

The risk plan has been endorsed by our executive and trustees, helping us to achieve our strategic ambitions and priorities to create a world where all animals are respected and treated with kindness and compassion.

Our top risks and the mitigations we have put in place are shown in the table opposite.

Our people

We want the RSPCA to be a great place to work and volunteer, and we’re taking steps to develop our people-centric culture. We want all our people to feel supported and excited about their work at the RSPCA, so their wellbeing is central to our planning.

Our employees and volunteers across the RSPCA should truly reflect the diversity of the communities in which we work; however, we’ve historically failed to connect to some ethnically diverse groups.

Our new seven-year equity, diversity and inclusion (ED&I) plan, interwoven with our people plan and drawing on insights from our LGBTQ+ inclusion work, will allow us to put that right, by reaching out to more communities.

Our ED&I vision statement

We intend to be a diverse, inclusive and supportive place to work and volunteer. We want people to be themselves and to collaborate with each other to deliver our strategic ambitions.

Wellbeing matters

2023 people experience survey

Our 2023 MyView people experience survey highlighted the vast improvements we’ve made as an organisation since the previous survey in 2019 in areas such as wellbeing (+27%), people feeling that they are treated with respect at work (+18%) and trust in local senior management teams (+13%). The 2023 survey identified that 92% of employees understand the importance of ED&I and our RSPCA values and 91% understand the importance of volunteering, reflecting the collaborative and inclusive culture we are growing through our people plan.

The themes we prioritised for improvement as a whole organisation were:

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35

Existing and pre-planned work from our people plan aligns with the improvement needed in these areas. In addition, we held a series of cross-functional ideas workshops to better understand colleagues’ perspectives and to collaborate on actions.

We prioritised building awareness of who our senior and executive leaders are through a new internal Google site. Leaders also increased their attendance at team meetings outside of their area of responsibility. We introduced a centralised process for shadowing frontline colleagues, which enables us to collate data demonstrating value.

Our operations directorate took extensive action following the survey, holding Inspectorate group meetings to talk openly about the results and gather feedback. We updated the format of our roadshows in line with the feedback and introduced multiple new channels of communication, including audio recording of internal newsletters.

Safeguarding for all

Safeguarding is embedded across the RSPCA. This includes looking out for our own staff and volunteers, who may have to face traumatising situations, and/or who may be living with a mental health condition. It also means safeguarding the adults and children we may encounter in the course of our work, for example vulnerable adults or children in households we have been called to, or young people with mental health issues attending our education courses.

Through our expert partner SAFE, we provide training to:

Modern Slavery Act statement

Below is our Anti-slavery and Human Trafficking Statement for the financial year ending 31 December 2023. This statement is approved by our Board, signed by the CEO and reviewed annually.

William Wilberforce, who led the anti-slavery movement in England during the early 19th century, was one of our founders. We wholeheartedly support the principles behind the Modern Slavery Act 2015 and are undertaking the steps listed below in order to comply with the Act and guard against slavery and trafficking in our supply chain. We will continue to develop and build upon these activities throughout the year ahead.

Steps taken

Everyone has safeguarding training every two years, while our Inspectorate teams have regular additional training.

Consequently, more safeguarding concerns are being reported, recorded and addressed, with more reports being made to appropriate authorities. This indicates a rise in the awareness around safeguarding.

We carried out an audit in 2023 and are implementing the key recommendations from that audit.

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----- Start of picture text -----
Key people data 2023 2022
Headcount: (at 31 December 2023) (at 31 December 2022)
• [Total: 1,785 workers] • [Total: 1,554 workers]
• [1,653 employees (92.7%)] • [1,440 employees (92.5%)]
• [84 casuals (4.7%)] • [61 casuals (4.0%)]
• [48 contractors (2.6%)] • [53 contractors (3.5%)]
• [4.0% declaring a disability] • [3.4% declaring a disability]
Employee turnover (January–December 2023) (January–December 2022)
• [Voluntary (permanent ] • [Voluntary (permanent ]
employees only): 9.1% employees only): 13.8%
(19% average in 2023 for (which compares favourably
NFP sector – Cendex) to the UK third sector
average of 19.4% in 2021)
• [Overall turnover: 9.2%]
• [Voluntary (permanent and ] • [Overall turnover: 14.0%]
fixed-term employees): 9.6% • [Voluntary (permanent and ]
fixed-term employees): 15.5%
• [Overall turnover: 10.41% ]
• [Overall turnover: 15.7%]
Average days lost to sickness (January–December 2023) (January–December 2022)
• [8.7 days (average sick days/ ] • [9.27 days (the median ]
person) UK average is 7.8 in number of sick days taken
2023 (8.5 days for NFP sector, per employee in the UK third
as reported by CIPD in Oct 23) sector in 2021 was 8.3)
• [Average employee ] • [Average employee headcount ]
headcount for 2023 was 1,737 for 2022 was 1,593 including
including casuals casuals
Gender split as identified by (at 31 December 2023) (at 31 December 2022)
the employee • [Female: 60.8%] • [Female: 62.7%]
• [Male: 20.9%] • [Male: 23.3%]
• [Transgender (Non-Binary): <1%] • [Transgender: <1%]
• [Prefer not to say: 2.2%] • [Prefer not to say: 2.4%]
• [Blank response: 16.0%] • [Blank response: 11.5%]
Ethnic origin (at 31 December 2023) (at 31 December 2022)
• [English/Welsh/Scottish/] • [English/Welsh/Scottish/]
Northern Irish/British Northern Irish/
(White): 76.0% British: 82%
• [BAME: 2.8%] • [BAME: 1%]
• [Other: 2.4%] • [Other: 2%]
• [Prefer not to say: 2.1%] • [Prefer not to say: 3%]
• [Blank response: 16.7%] • [Blank response: 12%]
LGBTQ+ (at 31 December 2023) (at 31 December 2022)
• [Bisexual: 2.4%] • [Bisexual: 1.91%]
• [Gay man: 1.6%] • [Gay man: 1.58%]
• [Gay woman/lesbian: 2.5%] • [Gay woman/lesbian: 2.44%]
----- End of picture text -----

*Source Agenda Consulting

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Chief executive’s remuneration

The chief executive’s remuneration was benchmarked and reviewed in April 2023.

From April 2023, the RSPCA Chief Executive is paid a total cash payment (including base pay and car allowance) of £186,571. This is at the median of the range for chief executives of charities of a similar size, according to data collected from XpertHR 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.

Gender pay gap

Our mean gender pay gap is 14.1 percent, a slight increase on 2022’s figure. The median gender pay gap has reduced to 16.9 percent (against 18.2 percent in 2022). We do have an issue of over-representation of females in entry-level roles particularly. 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 2025.

Ethnicity pay gap

Unlike the gender pay gap, there is not a statutory requirement to report the ethnicity pay gap. However, in 2023 we decided to start reporting on this information to understand the data and create an action plan to address any concerns. In 2023 our ethnicity pay gap mean was 0.0 percent whilst the median was 10.4 percent. The ethnicity pay gap is not a very accurate way to identify issues at the RSPCA, due to our large under-representation of colleagues from BAME communities compared to the UK as a whole. The structure of the pay gap formulas mean results are less reliable, the more imbalanced the two groups being compared are. We recognise the importance of representing the communities we serve and will continue our efforts to improve representation across the RSPCA through our ED&I plan, which was also launched in 2023.

Our volunteers

The people who give us their time – whether it’s just a few minutes or hours a week, or much, much more – are the driving force behind all that we do. Their dedication makes such a difference for animals in need in local communities, for the animals we try to protect through campaigning and for the animals we care for in our centres. The figures for 2023 (below) tell a powerful story about their contribution to our mission to build a better world for every kind of animal.

Total number of volunteers by quarter

(averages, allowing for starters and leavers following audit)

----- 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
----- End of picture text -----

Total number of volunteer hours donated

Standout activities by role

Volunteers by role

Key features of 2023

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Financial review

2023 Income

Legacy income £83.9m (2022: £86.2m) Other income £4.5m (2022: £4.6m) Investment income £3.9m (2022: £2.8m) Fees £0.5m (2022: £0.3m) Gain on disposal of fixed assets £3.2m (2022: £7.6m) Charitable activities £9.3m (2022: £8.0m) Contributions and donations £46.3m (2022: £42.6m)

2023 Expenditure

Field animal welfare £98.7m (2022: £85.9m) Prosecutions/legal £4.8m (2022: £3.4m) Science £1.9m (2022: £1.5m) Education £1.7m (2022: £1.2m) International £1.0m (2022: £0.6m) Campaigns, communications and publications £6.7m (2022: £4.5m) Support to branches £8.0m (2022: £7.3m) Cost of raising funds £26.7m (2022: £22.3m)

TRUSTEES’ REPORT AND ACCOUNTS 2023 39

The group’s consolidated performance in 2023 reflects another successful year in the organisation’s journey to long-term financial sustainability. The table below provides a five-year summary of the consolidated Statement of Financial Activities (SOFA) and shows that in 2023 we have maintained a total net income position and a positive net movement in funds, albeit smaller than the last two years, in the context of a difficult operating environment.

2023
£m		 2022
£m		 2021
£m		 2020
£m		 2019
£m
Total income 151.6 152.1 151.8 116.5 130.7
Net (expenditure)/
income (*)		 13.7 15.8 44.4 (24.5) (8.1)
Net movement
in funds		 4.3 14.1 70.5 (28.8) (17.2)

(*) total net income/(expenditure) defined as income after expenditure and the net gains/losses on investments

The statement of financial activities

The group net movement of funds of £4.3m generated in 2023 (2022: £14.1m) demonstrates the more stable financial health of the organisation and can be explained by a number of different factors.

•[Consolidated income totalled £151.6m (2022: £152.1m). Legacy ] income performed strongly despite the lower numbers of both notifications and high-value receipts this year, with lack of progress towards the resolution of the delays at the Probate Registry a key factor. Donated income benefited from encouraging trends in numbers of regular donors and an unprecedented £3.5m from our partnership with Omaze in the Omaze million pound house draw . There was profit on disposal of £3.2m from the sale of properties, notably the former cattery and clinic at Southall.

•[Expenditure on charitable activities across the group increased ] to £122.7m (2022: £104.4m), driven by inflationary pressures and increased demand on our services, reflected in particular in hospitals and animal centres, Inspectorate and prosecution costs. We also continued to invest in transforming the organisation to modernise the charity and ensure long-term sustainability, with a particular emphasis on digital change projects, the branch partnership programme, the brand implementation and initiatives to support our income generation.

•[In a stark contrast to 2022, our investment portfolio’s strong ] performance in the latter part of the year resulted in a gain on investments of £11.6m (2022: £9.6m loss), contributing to the positive net movement in funds.

•[However, this was largely offset by an actuarial loss on the ] pension scheme of £9.4m (2022: £1.7m loss).

During the same period, funds in the charity alone increased by £4.6m (2022: increase of £13.0m).

The statement of financial position

Overall the group’s total funds at 31 December 2023 were £278.8m (31 December 2022: £274.5m).

Total fixed assets grew by £11.9m, largely driven by capital appreciation in the investment portfolio of £11.6m and growth in the cash held in the portfolio. This was partially offset by disposal of the former cattery and clinic at Southall, and a number of redundant pensioner houses and shared-equity properties.

Net current assets of £102.2m were flat year on year, with opposite movements in underlying components cancelling each other out. A £10.4m increase in debtors from legacies and the Omaze draw accrued income was offset by reductions in short-term cash balances.

Long-term creditors were largely impacted by the £7.9m increase in the defined benefit pension scheme’s Financial Reporting Standard (FRS) 102 deficit, which is now £18.7m, compared to £10.8m a year ago. However, as explained further in the Pension section that follows, the FRS 102 pensions deficit calculation is performed for accounting purposes and is not used to assess the scheme’s employer contributions.

The group’s cash balances (cash at bank and in hand) fell by £15.4m over the course of the year from a starting position of £30.8m to £15.3m at 31 December 2023, net cash outflows from operating activities being the primary reason for the reduction. Significant cash outflows represent high levels of expenditure through our investment and transformation activities, without which cash flows would have broadly balanced. However in 2023, we also started to invest cash in higher-yielding current asset investments (notice accounts and fixed-term money market deposits of up to 12 months maturity) with a number of different counterparties. By the end of the year, £6m were deposited in such deposits. Our investment portfolio remains the primary funding source for our large designated programmes, while day-to-day operating expenditure is funded from our operating income.

Pension arrangements

The RSPCA supports a closed defined benefit pension scheme that is held separately under the management of the RSPCA pension scheme (the scheme). The scheme has a trustee board, which is chaired by 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.

The FRS 102 valuation position on 31 December 2023 shows the amount by which the liabilities exceed the assets of the defined benefit section of the pension scheme increased by £7.9m in 2023 to £18.7m (2022: £10.8m). The increase in the deficit is mostly due to actual inflation over the year being significantly higher than expected, which acted to increase the value placed on the scheme’s liabilities. Changes in demographic actuarial assumptions partly offset deterioration from changes in financial actuarial assumptions and lower than expected returns on the scheme’s assets.

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TRUSTEES’ REPORT AND ACCOUNTS 2023

The assumptions used for calculating these FRS 102 pension disclosures are different from those used for the last triennial valuation, which is carried out separately by the trustees of the RSPCA pension scheme. It is the triennial valuation that is used to calculate the payment of additional pension contributions. The next triennial valuation is scheduled to take place on 31 March 2024.

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.

In 2023, RSPCA (the employer) made pension payments totalling £5.9m (2022: £5.1m) to the group’s defined contribution scheme and a £2m contribution towards the reduction of the defined benefit scheme’s deficit.

Group consolidated reserves (£278.8m)

The RSPCA holds two types of reserve – restricted and unrestricted. The group reserves also include restricted and unrestricted reserves held in the subsidiary companies.

Restricted reserves (£28.3m)

Restricted reserves are the balance on endowment funds and restricted income funds; these are held pending their application to the activity specified by the donor.

Following an in-depth review of the charity’s restricted income funds, we concluded that the 2022 opening balances of various restricted funds were incorrect due to historical errors when preparing the accounts in prior years. This required a restatement of the opening restricted income fund balance at 1 January 2021 (see Note 17 for details), which resulted in an increase of the charity’s restricted funds by £2.8m and a corresponding reduction in the unrestricted funds. The entire adjustment relates to periods prior to 2021 and therefore there is no effect on the comparative figures in the SOFA. The adjustment did not impact the subsidiaries.

As at 31 December 2023, the balance of restricted reserves within the charity was £24.2m (2022 restated: £22.3m), and the balance within the group was £28.3m (2022 restated: £26.2m).

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 designated and general funds.

Unrestricted income funds (£131.2m)

As at 31 December 2023, the group’s balance of total designations was £131.2m (2022 restated: £141.4m).

A permanent designated fund is matched to fixed assets, as this cannot be quickly utilised to realise cash in the event that cash 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 long-term strategic projects underpinning the long-term sustainability of the RSPCA (see Note 19 for details).

Designated funds are broken down into funds to support the organisation’s transformation programme to 2027, the investment in growing our income to 2026, and the upgrade of our estate of animal centres and hospitals, with programmes expected to span over the next three to five years.

We plan to start utilising the £10m fund to support branches through a match-funded development opportunity in 2024, whilst our £5m Perfect Storm fund is likely to have fulfilled its objective by the end of 2024. This fund was a rapid response 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 created a very real animal welfare crisis. The fund has been applied across a number of activities, from contributions to food bank schemes, increases in boarding and rehoming capacity across our network of centres and branches and cross-sector voucher and grant schemes, to improvement to communications and welfare advice.

We have set aside £1.3m in a new designated fund to invest in campaigning and advocacy in our 200th anniversary year, with a particular focus on children and young people.

The designated funds breakdown is outlined below.

31 December
2023
£m		 31 December
2022
£m
Fixed assets reserve 48.4 51.4
Capital commitments 5.4 4.0
Other designations:
Transformation programme 23.4 30.0
Engagement and income generation 22.7 25.0
Improvements of our estate of
clinics, hospitals, animal, wildlife
and equine centres		 15.0 15.0
Branch development fund 10.0 10.0
Perfect Storm programme 4.0 5.0
Funds to support transfer to PDSA 1.0 1.0
200th anniversary campaign
and advocacy		 1.3 –
Total designated funds 131.2 141.4

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41

Other unrestricted funds (£119.3m)

The pension reserve of £18.7m (2022: £10.8m) 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.

In 2023, free reserves increased by £12.4m to £119.4m (2022 restated: £107.0m). Free reserves are calculated as total funds, less restricted reserves and designated funds.

The Board reviewed the reserves policy during the year and free reserves will continue to be held for the following reasons:

Consideration has been given to the level of reserves required to meet the risk in each of these categories and the target levels of free reserves – between £85m and £95m – have been agreed, based on the following assumptions:

The year’s group free reserves position exceeds the policy’s upper target range. Given the blend of risk we are exposed to, from ongoing economic and political uncertainty, volatility in investment values, fluctuations in our pension liability, coupled with inflationary pressures, and the more challenging geopolitical environment, we believe this remains a prudent approach at this stage.

Investments

Investment policy and governance

The RSPCA holds investments to support fluctuations in its cash flow, to fund structural growth and as a continuity reserve. 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. The main investment portfolio is managed by Cazenove Capital and we continued to hold one fund with Charles Stanley throughout 2023. Investments are held in a range of asset classes (a group of investments that are subject to the same laws and regulations) including equities, fixed income, real estate, commodities and cash and cash equivalents.

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, the UK Stewardship Code and the Net Zero Asset Managers Initiative.

Fund performance

The value of the RSPCA’s long-term investments at 31 December 2023 was £148.1m (2022: £133.4m), and net gains of £11.6m were reported in the group SOFA for 2023 (2022: losses of £9.6m).

The main portfolio achieved a total net return of +11.3% in the 12 months to 31 December 2023 (-6.2% in 2022), compared to the return target (CPI+4.0%) of 7.4% (2022: 14.6%). Over the past five years, the portfolio has returned an annualised 6.1% p.a. compared to the target of 8.5% (CPI + 4%). 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 +6.0% over the previous 12 months (2022: -8.8%) and +3.9% over a five-year annualised basis (2022: +1.7%). Therefore the portfolio continued to outperform its benchmark over the last 12 months and the last five years on an annualised basis.

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 20.

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 2023, RSPCA Trading had an income of £1.7m (2022: £1.4m). Outgoing resources were £1.4m (2022: £1.0m) and £0.3m of profit was donated to the RSPCA (2022: £0.4m).

RSPCA Assured Limited (formerly Freedom Food Limited and a separately registered charity) promotes RSPCA-approved welfare standards in livestock farming. RSPCA Assured activities generated an income of £5.7m (2022: £5.3m) and incurred costs of £6.0m (2022: £4.3m) resulting in a net deficit of £0.3m (2022: £1.0m surplus).

Future performance, going concern and long-term financial sustainability

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 results in 2023, following two years of exceptional performance, allow us to keep using our designated funds to support the delivery of our ambitious strategy; to grow income, modernise the organisation and maximise the impact for animal welfare. We have also been able to designate a further £1.3m towards campaigning and advocacy in our 200th anniversary year.

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TRUSTEES’ REPORT AND ACCOUNTS 2023

Looking ahead, we acknowledge the challenging environment we operate in.

We continue to monitor the tragic events in Ukraine and the Middle East, and their knock-on impact on the global economy. The relatively volatile economic environment had a very favourable impact on our investments in 2023 – with a rally that drove global stocks and bonds higher at the end of 2023, which offset last year’s negative outturn – but it is impossible to predict how the current climate, coupled with the outcome of key elections in 2024, will impact our holdings in the next 12 to 18 months. We are working closely with our investment managers to ensure our approach remains adequate to the situation.

The sluggish growth in the UK and lasting inflationary pressures not only fuelled the cost-of-living-crisis but are now starting a ‘cost-of-giving’ crisis, which could impact charities in the year ahead. The combination of those factors resulted in the need to make changes to some of our planning assumptions and original targets, including a re-profiling of our investment and returns from the income generation programme, a delay in the launch of the new brand, an increase in our cost base in particular against our veterinary, drugs and boarding costs, and inflation-linked expenditure as well as a delay in the transfer of prosecutions to the CPS.

Our most robust response to those risks remains our strategic long-term planned investment in:

We are confident that, despite the challenges outlined, we will continue to provide our critical services for animals in need and anchor long-term financial sustainability for the group.

In addition to those key programmes, we are also developing a more robust financial control and reporting framework and are investing in a planning and analysis tool to improve our planning, financial modelling and scenario analysis capabilities. This is coupled with planned activities to enhance the charity’s risk governance framework, to foster a culture of risk awareness, accountability and continuous improvement.

Signed on behalf of the RSPCA Board

Claire Horton Chair, RSPCA Board of Trustees 10 July 2024

Karen Harley Treasurer, RSPCA

TRUSTEES’ REPORT AND ACCOUNTS 2023 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 2023, 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:

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.

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 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:

Responsibilities of trustees

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 12 months from when the financial statements are authorised for issue.

As explained more fully in the RSPCA Board of Trustees’ statement of responsibilities set out on page 29, 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

TRUSTEES’ REPORT AND ACCOUNTS 2023

44

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.

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:

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 that 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 that 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, and data protection legislation. We performed audit procedures to inquire of management and those charged with governance whether the group is in compliance with these laws 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: 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

24 July 2024

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 2023

45

Charity statement of financial activities

YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
Unrestricted Restricted Endowment TOTAL Unrestricted Restricted Endowment TOTAL
funds funds funds 2023 funds funds funds 2022
Notes £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income and endowments from:
Donations and legacies 2a 122,313 8,138 – 130,451 124,413 4,844 – 129,257
Charitable activities 2b 3,599 42 – 3,641 2,772 113 – 2,885
Other trading activities 2c 3,164 – – 3,164 3,340 – – 3,340
Investments 2d 3,654 218 10 3,882 2,567 189 7 2,763
Gains on disposal of tangible fixed assets 2e 3,232 – – 3,232 7,582 – – 7,582
Other 2f 1,479 – – 1,479 837 – – 837
Total income 137,441 8,398 10 145,849 141,511 5,146 7 146,664
Expenditure on:
Charitable activities 3a 108,884 8,795 – 117,679 95,770 5,092 – 100,862
Raising funds 3b 25,682 – 13 25,695 21,507 – 19 21,526
Total expenditure 134,566 8,795 13 143,374 117,277 5,092 19 122,388
Net gains/(losses) on investments 10,772 157 648 11,577 (8,803) – (827) (9,630)
Net income/(expenditure) 13,647 (240) 645 14,052 15,431 54 (839) 14,646
Transfers between funds 16 (1,445) 1,445 – – 109 (109) – –
Other recognised gains:
Actuarial loss on defined benefit 25 (9,430) – – (9,430) (1,687) – – (1,687)
pension scheme
Net movement in funds 2,772 1,205 645 4,622 13,853 (55) (839) 12,959
Reconciliation of funds:
Fund balances brought forward
17 248,771 13,284 9,022 271,077 234,918 13,339 9,861 258,118
at 1 January (restated):
Fund balances carried forward
251,543 14,489 9,667 275,699 248,771 13,284 9,022 271,077
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 78 form part of these accounts.

46 TRUSTEES’ REPORT AND ACCOUNTS 2023

Consolidated statement of financial activities

YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
Unrestricted Restricted Endowment TOTAL Unrestricted Restricted Endowment TOTAL
funds funds funds 2023 funds funds funds 2022
Notes £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income and endowments from:
Donations and legacies 2a 122,037 8,138 – 130,175 124,018 4,844 – 128,862
Charitable activities 2b 3,599 5,693 – 9,292 2,644 5,330 – 7,974
Other trading activities 2c 4,532 – – 4,532 4,577 – – 4,577
Investments 2d 3,655 230 10 3,895 2,568 192 7 2,767
Gains on disposal of tangible fixed assets 2e 3,232 – – 3,232 7,582 – – 7,582
Other 2f 496 – – 496 346 – – 346
Total income 137,551 14,061 10 151,622 141,735 10,366 7 152,108
Expenditure on:
Charitable activities 3a 108,530 14,185 – 122,715 95,562 8,859 – 104,421
Raising funds 3b 26,727 – 13 26,740 22,280 – 19 22,299
Total expenditure 135,257 14,185 13 149,455 117,842 8,859 19 126,720
Net gains/(losses) on investments 10,772 157 648 11,577 (8,803) – (827) (9,630)
Net income/(expenditure) 13,066 33 645 13,744 15,090 1,507 (839) 15,758
Transfers between funds 16 (1,445) 1,445 – – (2,329) 2,329 – –
Other recognised gains:
Actuarial loss on defined benefit 25 (9,430) – – (9,430) (1,687) – – (1,687)
pension scheme
Net movement in funds 2,191 1,478 645 4,314 11,074 3,836 (839) 14,071
Reconciliation of funds:
Fund balances brought forward
17 248,332 17,175 9,022 274,529 237,258 13,339 9,861 260,458
at 1 January (restated):
Fund balances carried forward
250,523 18,653 9,667 278,843 248,332 17,175 9,022 274,529
at 31 December:
----- End of picture text -----

All gains and losses recognised in the current and preceding financial year are included in the consolidated statement of financial activities. The notes on pages 51 to 78 form part of these accounts.

TRUSTEES’ REPORT AND ACCOUNTS 2023 47

Consolidated and charity balance sheets

YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
Group Group Charity Charity
2023 2022 2023 2022
Restated Restated
Notes
£’000 £’000 £’000 £’000
Fixed assets
Intangible assets 4 6,613 7,725 6,509 7,610
Tangible assets 5 41,920 43,785 41,916 43,774
Investments 6 148,114 133,446 148,114 133,446
Programme-related investments 6c 188 – 188 –
Total fixed assets 196,835 184,956 196,727 184,830
Current assets
Stocks 7 129 227 – –
Debtors 8 96,238 85,861 96,027 85,330
Cash at bank and in hand 15,326 30,772 11,807 27,672
Current asset investments 6d 6,000 – 6,000 –
Total current assets 117,693 116,860 113,834 113,002
Creditors
Amounts falling due within one year 9 (15,490) (15,891) (14,670) (15,359)
Net current assets 102,203 100,969 99,164 97,643
Total assets less current liabilities 299,038 285,925 295,891 282,473
Creditors
Amounts falling due after more than one year
Provisions for liabilities and charges 11 (1,476) (575) (1,473) (575)
Defined benefit pension liability 25 (18,719) (10,821) (18,719) (10,821)
Total net assets 278,843 274,529 275,699 271,077
The funds of the charity:
Endowment funds 16 9,667 9,022 9,667 9,022
Restricted income funds 16 18,653 17,175 14,489 13,284
Unrestricted income funds:
Pension reserve 16 (18,719) (10,821) (18,719) (10,821)
Other charitable funds 16 138,071 117,788 139,091 118,227
Designated funds 16 131,171 141,365 131,171 141,365
Total funds 278,843 274,529 275,699 271,077
----- End of picture text -----

The notes on pages 51 to 78 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:

Claire Horton Karen Harley Chair, RSPCA Board of Trustees Treasurer, RSPCA 10 July 2024

48

TRUSTEES’ REPORT AND ACCOUNTS 2023

Consolidated cash flow statement

YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
2023 2022
Notes £’000 £’000
Cash flows from operating activities
Net cash (used in)/provided by operating activities A (12,042) 10,787
Cash flows from investing activities:
Dividends, interest and rents from investments 2,699 2,620
Interest received 1,196 147
Proceeds from the sale of property, equipment and motor vehicles 4,536 22,066
Purchase of intangibles (83) (174)
Purchase of property, plant and equipment (2,349) (856)
Proceeds from sale of investments 15,759 17,062
Purchases of investments (15,141) (37,562)
Increase in cash held in investment portfolio (3,833) (6,714)
–
(Increase)/decrease in current asset investments (6,000)
Addition to programme-related investments (188) –
Net cash provided/(used in) by investing activities (3,404) (3,411)
Change in cash and cash equivalents in the reporting period (15,446) 7,376
Cash and cash equivalents at the beginning of the reporting period 30,772 23,396
Cash and cash equivalents at the end of the reporting period B 15,326 30,772
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 13,744 15,758
Depreciation and amortisation charges 4,105 4,342
(Gains)/losses on investments (11,453) 9,630
Dividends and interest from investments (3,895) (2,767)
Profit on disposal of fixed assets (3,232) (7,582)
Decrease in stocks 98 318
Increase in debtors (10,377) (5,894)
Decrease in creditors (401) (1,011)
Increase/(decrease) in provisions 901 (37)
Pension cost less contributions payable (2,004) (2,171)
Pension scheme finance costs 472 201
Net cash (used in)/provided by operating activities (12,042) 10,787
B) Analysis of cash and cash equivalents
Cash in hand 15,326 30,772
Total cash and cash equivalents 15,326 30,772
----- 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 78 form part of these accounts.

TRUSTEES’ REPORT AND ACCOUNTS 2023 49

Analysis of change in net funds

YEAR ENDED 31 DECEMBER 2023

At 1 January
2023
£’000		 Cash fows
£’000		 At 31 December
2023
£’000
Cash and cash equivalents:
Cash in hand
30,772		 (15,446) 15,326
Total
30,772		 (15,446) 15,326

50

TRUSTEES’ REPORT AND ACCOUNTS 2023

Notes to the accounts

YEAR ENDED 31 DECEMBER 2023

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.

The global and domestic political and economic environment continues to be challenging.

The political focus captured by elections on both sides of the Atlantic will affect government policies in the short term (slow progress of our current campaigns) and create uncertainty over the long term.

The ongoing war in Ukraine, the emerging geopolitical conflict in Gaza and flare-up of tensions in the Red Sea intensify global supply chain issues, which in turn could affect inflation dynamics.

The outlook for 2024 is a slow-growth UK economy with inflation expected to be more persistent and domestically fueled than we previously thought, resulting in a persistent cost-of-living crisis and markets expecting interest rates will need to remain higher for longer to bring inflation under control.

The macroeconomic context presents challenges to the RSPCA in several ways including: unpredictability of investment performance; impact on income from sale of pet food, insurance and animalrelated products; potential decrease in donations; a fall in the value of legacies as a result of falling property prices. In addition, there is continued inflationary pressure on the expenditure incurred in carrying out our charitable activities.

Despite the ongoing uncertainties, the charity has had another solid year with a net surplus of £4.6m for 2023 (2022: £13m), driven by continuing high levels of legacy and fundraised income. The group also generated a surplus of £4.3m for 2023 (2022: £14m). As at 31 December 2023, free reserves within the charity were £120m and £119m for the group.

Although the free reserves of the charity as at 31 December 2023 exceed the top of the range of that specified by the Reserves Policy (£95m) detailed in the financial review of the Trustees’ annual report , it is deemed an appropriate approach to take in the current external context and the long-term transformational journey of the RSPCA. The surplus returned has allowed trustees to further designate funds to support the investment in campaigning and advocacy in our 200th anniversary year, with a particular focus on children and young people advocacy campaigns.

The trustees have endorsed the 2024–26 plan and the detailed 2024 deficit budget with the understanding that the organisation is in a strong financial position. These plans include the work needed to re-assess our transitioning operating model and consequential financial projections for the outer years of the plan in time for the 2025–27 planning process, to ensure that we have a clear roadmap for returning to sustainable budgets.

A combination of a healthy level of reserves, designations to support key strategic investments, prudent income forecasting, improved organisational financial and wider performance reporting and sufficient cash to meet the RSPCA’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:

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

TRUSTEES’ REPORT AND ACCOUNTS 2023 51

Notes to the accounts continued

YEAR ENDED 31 DECEMBER 2023

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 the 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 that 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. The value of accrued legacy income at the balance sheet date is separately disclosed in the Debtors Note, Note 8.

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.

d) Consolidation

The financial statements consolidate the results of the RSPCA and its wholly owned subsidiaries (see Note 20). 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 137 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 branches in national administration. 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 RSPCA’s entitlement is measurable.

Legacies are deemed receivable from the date of probate, provided that sufficient information has been received to enable the RSPCA 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 that 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.

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.

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 below.

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

52

TRUSTEES’ REPORT AND ACCOUNTS 2023

aspects of the RSPCA. Governance and support costs, net of incidental income, have been allocated across the charity’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 charity 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 less provisions for impairment.

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.

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 RSPCA’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 charity 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. Intangibles are currently made up of trademarks and software, which are amortised on a straight-line basis over their useful life. 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. Stocks and shares are measured at bid value (which equates to market value) at the balance sheet date.

Donated and legacy investment properties consist of land where development approval is being sought or the property is being held

TRUSTEES’ REPORT AND ACCOUNTS 2023 53

Notes to the accounts continued

YEAR ENDED 31 DECEMBER 2023

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.

m) Stocks

Stocks are stated at the lower of cost and the net realisable value. Provision is made for slow-moving or obsolete items.

The RSPCA is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly, it 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 Ltd makes a qualifying donation of taxable profit to the RSPCA to the full extent allowable. Unless material any corporation tax liability arising in RSPCA Trading Ltd is included within the resources expended by the group.

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. Where the donor restrictions are for revenue purposes for activities normally carried out within the General Fund, expenditure is allocated to the restricted funds 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 19.

q) Provisions

Provisions are provided for in the accounts when a liability is likely to occur in the future based on a past event and it is able to be estimated.

r) Assets held as a custodian

The charity holds a number of assets as a custodian on behalf of branches; these are not included in the balance sheet of the charity.

o) Pension costs

For the defined benefit section of the pension scheme, the interest cost and the expected return on assets are shown net of other finance costs or credits adjacent to interest.

Actuarial gains and losses are recognised immediately in other recognised gains and losses. The defined benefit pension section is funded, with the assets of the scheme held separately from those of the group in a separate trustee-administered fund. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent currency and term to the scheme liabilities. The actuarial valuation is obtained at least triennially and is updated at each balance sheet date. The resulting pension scheme asset or liability is presented separately after other net assets on the face of the balance sheet. Key assumptions that have been used to estimate the pension scheme liability include a discount rate of 4.6%; RPI inflation of 2.90%; and CPI inflation of 2.60%.

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.

TRUSTEES’ REPORT AND ACCOUNTS 2023

54

----- Start of picture text -----
Unrestricted Restricted Endowment Total Total
funds funds funds 2023 2022
£’000 £’000 £’000 £’000 £’000
2. Income and endowments
a) Donations and legacies
CHARITY
Legacy income 80,944 2,935 – 83,879 86,221
Contributions and donations 41,369 5,203 – 46,572 43,036
Total RSPCA donations and legacies 122,313 8,138 – 130,451 129,257
GROUP
Legacy income 80,944 2,935 – 83,879 86,221
Contributions and donations 41,373 5,203 – 46,576 43,036
Total RSPCA donations and legacies 122,317 8,138 – 130,455 129,257
Less Gift Aid (280) – – (280) (395)
Total donations and legacies 122,037 8,138 – 130,175 128,862
----- End of picture text -----

The income from donations and legacies in 2022 for the group (charity) was £128,862k
£4,844k (£4,844k) was restricted.		 The income from donations and legacies in 2022 for the group (charity) was £128,862k
£4,844k (£4,844k) was restricted.		 (£129,257k) of which (£129,257k) of which £124,018k (£124,413k) £124,018k (£124,413k) was unrestricted and was unrestricted and
b) Income from charitable activities
CHARITY
Sale of goods 943 – – 943 926
Rehoming, veterinary and boarding income 730 – – 730 1,040
Costs recovered 1,767 – – 1,767 847
Other fees and charges received 159 42 – 201 72
Total RSPCA income from charitable activities 3,599 42 – 3,641 2,885
GROUP
Sale of goods 943 – – 943 926
Rehoming, veterinary and boarding income 730 – – 730 1,040
Costs recovered 1,767 – – 1,767 719
Other fees and charges received 159 42 – 201 72
Total RSPCA income from charitable activities 3,599 42 – 3,641 2,757
RSPCA Assured Ltd welfare assessment and licence fees – 5,651 – 5,651 5,217
Total income from charitable activities 3,599 5,693 – 9,292 7,974

The income from charitable activities in 2022 for the group (charity) was £7,974k (£2,885k) of which £2,644k (£2,772k) was unrestricted and £5,330k (£113k) was restricted. Costs recovered include £1,705k awarded to the RSPCA in successful prosecutions (2022: £603k).

TRUSTEES’ REPORT AND ACCOUNTS 2023

55

Notes to the accounts continued

YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
Unrestricted Restricted Endowment Total Total
funds funds funds 2023 2022
£’000 £’000 £’000 £’000 £’000
2. Income and endowments continued
c) Other trading activities
CHARITY
RSPCA income (from social lotteries) 3,164 – – 3,164 3,340
GROUP
RSPCA income (from social lotteries) 3,164 – – 3,164 3,340
Sale of goods 798 – – 798 686
Income from royalties and sponsorship 570 – – 570 551
Total group other trading activities 4,532 – – 4,532 4,577
The income from other trading activites in 2022 for the group (charity) was £4,577k (£3,340k) of which £4,577k (£3,340k) was unrestricted and nil was restricted.
d) Investment income
CHARITY
Income from listed investments 2,494 195 10 2,699 2,619
Bank and other interest 1,160 23 – 1,183 144
Total investment income 3,654 218 10 3,882 2,763
GROUP
Income from listed investments 2,494 195 10 2,699 2,620
Bank and other interest 1,161 35 – 1,196 147
Total investment income 3,655 230 10 3,895 2,767
The income from investments in 2022 for the group (charity) was £2,767k (£2,763k) of which £2,568k (£2,567k) was unrestricted, £192k (£189k) was
restricted and £7k (£7k) was in respect of endowments.
e) Gains on disposal of tangible fixed assets
CHARITY AND GROUP
Disposal of fixed assets 3,232 – – 3,232 7,582
Total RSPCA gains on disposal of tangible fixed assets 3,232 – – 3,232 7,582
The gains on disposal of tangible fixed assets for the group and charity in 2022 was £7,582k, of which £7,582k was unrestricted and nil was restricted.
f) Other income
CHARITY
Other fees and charges 1,479 – – 1,479 837
Total charity other income 1,479 – – 1,479 837
GROUP
Other fees and charges 496 – – 496 346
Total group other income 496 – – 496 346
----- End of picture text -----

Total other income in 2022 for the group (charity) was £346k (£837k) of which £346k (£837k) was unrestricted and nil was restricted.

56

TRUSTEES’ REPORT AND ACCOUNTS 2023

----- Start of picture text -----
Unrestricted funds
Restricted Endowment
Total Total
funds funds
Support 2023 2022
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 26,952 13,121 40,073 4,136 – 44,209 39,257
Inspectorate 31,238 9,742 40,980 3,908 – 44,888 40,407
Prosecutions – animal care 3,933 490 4,423 2 – 4,425 2,529
Support to branches 7,113 687 7,800 241 – 8,041 7,333
Prosecutions – legal 4,553 264 4,817 – – 4,817 3,364
Campaigns, communications, publications 5,369 1,363 6,732 – – 6,732 4,615
Science 1,189 513 1,702 160 – 1,862 1,542
Education 1,053 544 1,597 152 – 1,749 1,172
International 713 47 760 196 – 956 643
RSPCA total cost of charitable activities 82,113 26,771 108,884 8,795 – 117,679 100,862
GROUP
Field animal welfare:
Hospitals and animal centres 26,598 13,121 39,719 4,136 – 43,855 39,129
Inspectorate 31,238 9,742 40,980 3,908 – 44,888 40,407
Prosecutions – animal care 3,933 490 4,423 2 – 4,425 2,529
Support to branches 7,113 687 7,800 241 – 8,041 7,333
Prosecutions – legal 4,553 264 4,817 – – 4,817 3,364
Campaigns, communications, publications 5,369 1,363 6,732 – – 6,732 4,535
Science 1,189 513 1,702 160 – 1,862 1,542
Education 1,053 544 1,597 152 – 1,749 1,172
International 713 47 760 196 – 956 643
RSPCA total cost of charitable activities 81,759 26,771 108,530 8,795 – 117,325 100,654
outside of the group
RSPCA Assured Ltd charitable expenditure – – – 5,390 – 5,390 3,767
Total cost of charitable activities 81,759 26,771 108,530 14,185 – 122,715 104,421
----- End of picture text -----

Expenditure on charitable activities in 2022 for the group (charity) was £104,421k (£100,862k) of which £95,562k (£95,770k) was unrestricted and £8,859k (£5,092k) was restricted.

TRUSTEES’ REPORT AND ACCOUNTS 2023

57

Notes to the accounts continued

YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
Total Total
2023 2022
£’000 £’000
3. Expenditure continued
a) Charitable activities continued
CHARITY AND GROUP
Support to branches:
Branch support officers 2,351 1,622
Shared fundraising income grant 3,650 3,904
Grants 354 450
Cost of sales 1,013 931
Other support 673 426
Total support to branches 8,041 7,333
----- End of picture text -----*

*The shared fundraising income grant is a fixed rate payment to all branches based on the income collected by the Society from door-to-door campaigns.

Unrestricted funds
Restricted
funds
£’000
Endowment
funds
£’000
Direct
£’000
Support
costs
£’000
Total
£’000		 Total
2023
£’000		 Total
2022
£’000
b) Raising funds
CHARITY
Total RSPCA fundraising activities
22,955
2,727
25,682
–
13		 25,695 21,526
GROUP
Total RSPCA fundraising activities
22,955
2,727
25,682
–
13		 25,695 21,526
RSPCA Trading Limited expenditure
1,045
–
1,045
–
–		 1,045 773
Total costs of raising funds
24,000
2,727
26,727
–
13		 26,740 22,299

Expenditure on raising funds in 2022 for the group (charity) was £22,299k (£21,526k) of which £22,280k (£21,507k) was unrestricted and £19k (£19k) was in respect of endowment funds, and nil (nil) was restricted.

c) Support, governance and administration costs
CHARITY AND GROUP
Governance 2,156 1,740
Finance, transformation and supporter service 10,704 6,592
Headquarters services 1,462 1,843
Central information technology and communications 6,545 6,584
Legal 562 578
Human resources and training 6,894 6,285
Property, printing, purchases and transport 1,175 737
Total support, governance and administration costs 29,498 24,359

58

TRUSTEES’ REPORT AND ACCOUNTS 2023

----- Start of picture text -----
Total Total
2023 2022
£’000 £’000
3. Expenditure (continued)
d) Grants payable
CHARITY AND GROUP
Expenditure on charitable activities include the following grants payable:
Support to branches 4,004 4,354
Science, international, other 599 407
Total grants payable included in charitable activities 4,603 4,761
RECIPIENTS OF INSTITUTIONAL GRANTS
RSPCA branches – door-to-door grants 3,650 3,904
RSPCA branches – neutering grants 73 102
RSPCA branches – other grants 281 348
Other 599 407
Total institutional grants paid 4,603 4,761
Support to branches includes the shared fundraising income grant of (£3,650k).
e) Additional analysis of expenditure
CHARITY
Included in total expenditure are fees payable in respect of:
Auditor’s remuneration – statutory audit 112 104
Depreciation of fixed assets 2,904 3,196
Amortisation of intangible fixed assets 1,145 1,130
Hire of equipment under operating leases 94 107
Premises rent 1,087 1,238
Trustee indemnity insurance 28 31
Other insurance excluding motors 889 535
Net interest on the defined benefit pension scheme 472 201
GROUP
Included in total expenditure are fees payable in respect of:
Auditor’s remuneration – statutory audit 159 148
Depreciation of fixed assets 2,910 3,202
Amortisation of intangible fixed assets 1,195 1,140
Hire of equipment under operating leases 94 267
Premises rent 1,087 1,238
Trustee indemnity insurance 28 31
Other insurance excluding motors 889 553
Net interest on the defined benefit pension scheme 472 201
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TRUSTEES’ REPORT AND ACCOUNTS 2023 59

Notes to the accounts continued

YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
Total Total
2023 2022
£’000 £’000
3. Expenditure (continued)
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 56,174 48,354
Social security costs 5,596 4,974
Employer’s contribution to pension schemes 5,872 5,076
Total employment costs 67,642 58,404
The emoluments of higher-paid staff within the following scales were:
£60,000–£69,999 48 35
£70,000–£79,999 33 10
£80,000–£89,999 7 12
£90,000–£99,999 9 2
£100,000–£109,999 2 1
£110,000–£119,999 1 1
£120,000–£129,999 1 2
£130,000–£139,999 1 1
£150,000–£159,999 1 –
£160,000–£169,999 – 1
£170,000–£179,999 1 –
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Emoluments include salary, benefits in kind and exit costs, but exclude pension scheme contributions. 104 employees earning more than £60,000 in 2023 participated in the pension scheme (2022: 65).

Employer contributions of £811k were paid into the pension scheme on behalf of these members in 2023 (2022: £522k)

In 2023, the charity made termination payments of £361k (2022: 262k) and the group made payments of £424k. 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 payments 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, postage and incidentals – are reimbursed. In 2023 six trustees were reimbursed for expenses and/or had expenses paid by the charity (2022: seven). In 2023, trustees were reimbursed £2k (2022: £1k) for out-of-pocket expenses and the RSPCA paid £0k (2022: £0k) 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 charity, comprised the trustees; the RSPCA’s 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 £1,337k (2022: £1,364k).

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TRUSTEES’ REPORT AND ACCOUNTS 2023

The key management personnel of the group comprise those of the RSPCA and the key management personnel of its wholly owned subsidiaries, RSPCA Trading Ltd and RSPCA Assured Ltd. The key management of RSPCA Trading Ltd is the same as that of its parent company. The key management personnel of RSPCA Assured Ltd is comprised of the trustees and the chief executive officer whose employee benefits total £130k (2022: £102k). The total employee benefits of key management personnel of the group was therefore £1,468k (2022: £1,466k). Redundancy payments made to group key management personnel within the year totalled £65k (2022: £46k).

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Full-time Total Full-time Total
equivalents employees equivalents employees
2023 2023 2022 2022
3. Expenditure (continued)
g) Staff numbers
The analysis of the average number of employees by activity was as follows:
Hospitals and animal centres 470 639 529 610
Inspectorate 361 452 406 438
Prosecutions 10 12 11 11
Support to branches 43 46 37 38
Campaigns, communication, publications 41 56 40 43
Science 19 27 19 22
Education 24 40 30 39
International 2 2 2 2
Support and governance 207 256 195 207
Fundraising 99 113 92 96
Total average employee numbers 1,276 1,643 1,361 1,506
The figures above exclude casual workers.
2023 2022
£’000 £’000
4. Intangible fixed assets
CHARITY
Cost
At 1 January 11,414 11,365
Additions 44 49
At 31 December 11,458 11,414
Accumulated depreciation
At 1 January 3,804 2,674
Charge for the year 1,145 1,130
At 31 December 4,949 3,804
Net book value at 31 December 6,509 7,610
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Intangible assets relate to trademark costs and 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 2023

61

Notes to the accounts continued

YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
2023 2022
£’000 £’000
4. Intangible fixed assets (continued)
GROUP
Cost
At 1 January 11,539 11,365
Additions 83 174
At 31 December 11,622 11,539
Accumulated depreciation
At 1 January 3,814 2,674
Charge for the year 1,195 1,140
At 31 December 5,009 3,814
Net book value at 31 December 6,613 7,725
----- End of picture text -----

Intangible assets relate to trademark costs, Salesforce software and 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.

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Leasehold property Freehold property
Equity Equity Animal centres Motor
Other Equipment Total
housing housing and other vehicles
£’000 £’000 £’000
£’000 £’000 £’000 £’000
5. Tangible fixed assets
a) GROUP
Cost
At 1 January 2023 43 11,515 4,437 58,580 18,714 10,503 103,792
Additions – 410 – 179 497 1,263 2,349
Disposals – (127) (420) (1,605) (5,286) (1,661) (9,099)
At 31 December 2023 43 11,798 4,017 57,154 13,925 10,105 97,042
Accumulated depreciation
At 1 January 2023 19 3,288 1,584 27,938 17,592 9,586 60,007
Released on disposals – (79) (140) (630) (5,286) (1,660) (7,795)
Charge for the year 2 291 85 1,318 430 784 2,910
At 31 December 2023 21 3,500 1,529 28,626 12,736 8,710 55,122
Net book value at 31 December 2023 22 8,298 2,488 28,528 1,189 1,395 41,920
Net book value at 31 December 2022 24 8,227 2,853 30,642 1,122 917 43,785
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----- Start of picture text -----
Leasehold property Freehold property
Equity Equity Animal centres Motor
Other Equipment Total
housing housing and other vehicles
£’000 £’000 £’000
£’000 £’000 £’000 £’000
5. Tangible fixed assets continued
b) CHARITY
Cost
At 1 January 2023 43 11,515 4,437 58,580 18,682 10,503 103,760
Additions – 410 – 179 497 1,263 2,349
Disposals – (127) (420) (1,605) (5,286) (1,638) (9,076)
At 31 December 2023 43 11,798 4,017 57,154 13,893 10,128 97,033
Accumulated depreciation
At 1 January 2023 19 3,288 1,584 27,938 17,571 9,586 59,986
Released on disposals – (79) (140) (630) (5,286) (1,638) (7,773)
Charge for the year 2 291 85 1,318 430 778 2,904
At 31 December 2023 21 3,500 1,529 28,626 12,715 8,726 55,117
Net book value at 31 December 2023 22 8,298 2,488 28,528 1,178 1,402 41,916
Net book value at 31 December 2022 24 8,227 2,853 30,642 1,111 917 43,774
----- End of picture text -----

Included in Freehold property: Other are properties in the course of construction costing £0k (2022: £0k).

The RSPCA 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 2023 was £3,040k (2022: £3,466k). 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 property and Leasehold property: Other and in Freehold property: 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
Net book value
At 31 December 2023 – 79 327 1,614
At 31 December 2022 – 82 360 1,952
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TRUSTEES’ REPORT AND ACCOUNTS 2023 63

Notes to the accounts continued

YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
Group Group Charity Charity
2023 2022 2023 2022
£’000 £’000 £’000 £’000
6. Investments
a) Analysis of movements in the year
Market value at 1 January 119,348 107,781 119,348 107,781
Acquisitions at cost 15,141 38,271 15,141 38,271
Disposal proceeds (15,759) (17,074) (15,759) (17,074)
Realised and unrealised gains/(losses) in the year 11,453 (9,630) 11,453 (9,630)
Fair value at 31 December 130,183 119,348 130,183 119,348
Cash held in portfolio at 31 December 17,931 14,098 17,931 14,098
Total fair value at 31 December 148,114 133,446 148,114 133,446
Historical cost at 31 December 108,755 108,164 108,755 108,164
b) Analysis of investments held at 31 December
Listed investments:
Equities 94,749 85,562 94,749 85,562
Bonds 20,749 19,166 20,749 19,166
Multi-asset funds 5,263 4,921 5,263 4,921
Alternatives 8,713 8,990 8,713 8,990
Total listed securities 129,474 118,639 129,474 118,639
Unlisted securities:
Investment property 709 709 709 709
Cash 17,931 14,098 17,931 14,098
Total investments at fair value 148,114 133,446 148,114 133,446
c) Programme-related investments
Loans to branches less provisions 188 – 188 –
d) Current asset investments
Investments in fixed term deposit accounts 6,000 – 6,000 –
----- End of picture text -----

The total gain on investments was £11,577k (2022: loss £9,630k) of which £10,772k (2022: loss £8,803k) was unrestricted, £157k (2022: £0k) was restricted and £648k (2022: loss £827k) 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 its branches. New loans were made by the RSPCA within the year.

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TRUSTEES’ REPORT AND ACCOUNTS 2023

----- Start of picture text -----
Group Group Charity Charity
2023 2022 2023 2022
£’000 £’000 £’000 £’000
7.Stocks
Stocks held for resale 129 227 – –
8. Debtors
Income tax and VAT recoverable 1,774 1,674 1,886 1,782
Prepayments 2,059 2,368 1,979 2,262
Accrued income 91,103 79,940 89,628 78,652
Group debtors – – 1,561 1,407
Other debtors 1,302 1,879 973 1,227
Total debtors 96,238 85,861 96,027 85,330
Accrued income for 2023 includes accrued legacy income for the group and the charity of £84,012k (2022: £78,446k).
9. Creditors
Amounts falling due within one year
Trade creditors 5,503 5,018 5,110 4,692
Branch creditors 4,645 5,020 4,645 5,020
Accruals and deferred income 3,888 4,617 3,525 4,411
Other tax and social security 1,454 1,236 1,390 1,236
Total creditors 15,490 15,891 14,670 15,359
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*Deferred income for the group includes deferred income for the RSPCA and RSPCA Assured Limited. The RSPCA balance includes lottery income received for future draws, and RSPCA Assured deferred income includes membership income received within the reporting period relating to future accounting periods.

At 1 January Charged to Utilised/ At 31 December
2023 SOFA released 2023
£’000 £’000 £’000 £’000
10. Deferred income
GROUP
Deferred income 372 438 (372) 438
Deferred income 372 438 (372) 438
CHARITY
Deferred income 246 298 (246) 298
Deferred income 246 298 (246) 298

TRUSTEES’ REPORT AND ACCOUNTS 2023 65

Notes to the accounts continued

YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
At 1 January Charged to Utilised/ At 31 December
2023 SOFA released 2023
£’000 £’000 £’000 £’000
11. Provisions for liabilities and charges
GROUP
Taxation provision 172 1,383 (172) 1,383
Other provision 403 80 (390) 93
Total provisions 575 1,463 (562) 1,476
CHARITY
Taxation provision 172 1,383 (172) 1,383
Other provision 403 77 (390) 90
Total provisions 575 1,460 (562) 1,473
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The taxation provision includes an estimate for the tax on 2023 employee benefits payable to HMRC at the end of the 2023/24 tax year and an amount payable to HMRC for prior year corrections. 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.

----- Start of picture text -----
|||| |---|---|---| |2023|2022| |£’000|£’000| |12. Commitments| |At 31 December, the group had the following capital and other budgeted project commitments.| |Contracted| |Authorised but not contracted|5,402|3,981|

----- End of picture text -----

All commitments relate to the parent charity. All commitments will be funded by the capital and project commitments designated fund (Note 19).

13. Contingent liabilities and assets

The RSPCA has 114 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 RSPCA 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 £148,114 (£133,446k) at 31 December 2023 (31 December 2022).

15. Trusteeships

The RSPCA holds property title deeds and investments as custodian trustee for certain branches. The property title deeds 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.

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TRUSTEES’ REPORT AND ACCOUNTS 2023

----- Start of picture text -----
At 1 January
Transfer between Other recognised At 31 December
2023 Income Expenditure
Restated £’000 £’000 funds gains/(losses) 2023
£’000 £’000 £’000
£’000
16. Analysis of movement of funds
YEAR ENDED 31 DECEMBER 2023
a) GROUP
Endowment funds*
Bowmer Fund 552 10 – – 52 614
The A&D Simpson Fund 2,465 – (2) – 253 2,716
Wyndham Cottle Charity – capital fund 3,067 – (3) – 338 3,402
MT & VL Wythe Charitable Trust 1,081 – (7) – (23) 1,051
Albekier Fund 1,857 – (1) – 28 1,884
Total endowment funds 9,022 10 (13) – 648 9,667
Restricted funds
Animal welfare – operational and capital funds 4,430 7,079 (7,579) 719 – 4,649
Birmingham Fund 421 1 – – – 422
Overseas funds 1,918 33 (196) 377 45 2,177
Regional funds 1,413 683 (511) – – 1,585
Tubney Grant Fund 2,768 – (259) 297 – 2,806
Other restricted funds 2,332 602 (250) 52 112 2,848
RSPCA Assured Limited 3,893 5,663 (5,390) – – 4,166
Total restricted funds 17,175 14,061 (14,185) 1,445 157 18,653
Unrestricted funds
Pension reserve (10,821) (472) – 2,004 (9,430) (18,719)
General Fund 117,788 130,228 (115,938) (4,779) 10,772 138,071
Designated funds 141,365 7,795 (19,319) 1,330 – 131,171
Total unrestricted funds 248,332 137,551 (135,257) (1,445) 1,342 250,523
Total group funds 274,529 151,622 (149,455) – 2,147 278,843
----- End of picture text -----**

** The transfer between funds reflects the movement from General Funds to designated funds and restricted funds, the £2m payment to the Pension Fund from the General Fund, £1.4m of which is the write off of restricted funds where the expenditure was in excess of the income and £1.3m of funds designated in the year.

TRUSTEES’ REPORT AND ACCOUNTS 2023 67

Notes to the accounts continued

YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
At 1 January
Transfer between Other recognised At 31 December
2023 Income Expenditure
Restated £’000 £’000 funds gains/(losses) 2023
£’000 £’000 £’000
£’000
16. Analysis of movement of funds continued
YEAR ENDED 31 DECEMBER 2023
b) CHARITY
Endowment funds*
Bowmer Fund 552 10 – – 52 614
The A&D Simpson Fund 2,465 – (2) – 253 2,716
Wyndham Cottle Charity – capital fund 3,067 – (3) – 338 3,402
MT & VL Wythe Charitable Trust 1,081 – (7) – (23) 1,051
Albekier Fund 1,857 – (1) – 28 1,884
Total endowment funds 9,022 10 (13) – 648 9,667
Restricted funds
Animal welfare – operational and capital funds 4,432 7,079 (7,579) 719 – 4,651
Birmingham Fund 421 1 – – – 422
Overseas funds 1,918 33 (196) 377 45 2,177
Regional funds 1,413 683 (511) – – 1,585
Tubney Grant Fund 2,768 – (259) 297 – 2,806
Other restricted funds 2,332 602 (250) 52 112 2,848
Total restricted funds 13,284 8,398 (8,795) 1,445 157 14,489
Unrestricted funds
Pension reserve (10,821) (472) – 2,004 (9,430) (18,719)
General Fund 118,227 130,118 (115,247) (4,779) 10,772 139,091
Designated funds 141,365 7,795 (19,319) 1,330 – 131,171
Total unrestricted funds 248,771 137,441 (134,566) (1,445) 1,342 251,543
Total charity funds 271,077 145,849 (143,374) – 2,147 275,699
----- End of picture text -----**

** The transfer between funds reflects the movement from General Funds to designated funds and restricted funds, the £2m payment to the Pension Fund from the General Fund, £1.4m which is the write-off of restricted funds where the expenditure was in excess of the income and £1.3m of funds designated in the year.

68

TRUSTEES’ REPORT AND ACCOUNTS 2023

----- Start of picture text -----
At 1 January At 31 December
Transfer between Other recognised
2022 Income Expenditure 2022
Restated £’000 £’000 funds gains/(losses) Restated
£’000 £’000
£’000 £’000
16. Analysis of movement of funds continued
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 3,739 3,907 (3,216) – – 4,430
Birmingham Fund 397 24 – – – 421
Overseas funds 2,203 29 (314) – – 1,918
Regional funds 1,683 586 (856) – – 1,413
Tubney Grant Fund 2,822 8 (62) – – 2,768
Other restricted funds 2,495 592 (646) (109) – 2,332
RSPCA Assured Limited – 5,220 (3,765) 2,438 – 3,893
Total restricted funds 13,339 10,366 (8,859) 2,329 – 17,175
Unrestricted funds
Pension reserve (11,104) (201) – 2,171 (1,687) (10,821)
General Fund 105,992 141,031 (91,793) (28,639) (8,803) 117,788
Designated funds 142,370 905 (26,049) 24,139 – 141,365
Total unrestricted funds 237,258 141,735 (117,842) (2,329) (10,490) 248,332
Total group funds 260,458 152,108 (126,720) – (11,317) 274,529
----- End of picture text -----**

** 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 RSPCA Assured reserves upon consolidation from the General Fund to restricted funds.

Further narrative behind the restricted and endowment funds can be found on page 79 of the Trustees’ report and accounts .

TRUSTEES’ REPORT AND ACCOUNTS 2023 69

Notes to the accounts continued

YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
At 1 January At 31 December
Transfer between Other recognised
2022 2022
Restated Income Expenditure funds gains/(losses) Restated
£’000 £’000 £’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 3,739 3,907 (3,214) – – 4,432
Birmingham Fund 397 24 – – – 421
Overseas funds 2,203 29 (314) – – 1,918
Regional funds 1,683 586 (856) – – 1,413
Tubney Grant Fund 2,822 8 (62) – – 2,768
Other restricted funds 2,495 592 (646) (109) – 2,332
Total restricted funds 13,339 5,146 (5,092) (109) – 13,284
Unrestricted funds
Pension reserve (11,104) (201) – 2,171 (1,687) (10,821)
General Fund 103,652 140,807 (91,228) (26,201) (8,803) 118,227
Designated funds 142,370 905 (26,049) 24,139 – 141,365
Total unrestricted funds 234,918 141,511 (117,277) 109 (10,490) 248,771
Total charity funds 258,118 146,664 (122,388) – (11,317) 271,077
----- End of picture text -----

** 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 79 of the Trustees’ report and accounts .

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TRUSTEES’ REPORT AND ACCOUNTS 2023

----- Start of picture text -----
Group Charity
£’000 £’000
17. Details of prior period adjustment
YEAR ENDED 31 DECEMBER 2023
Unrestricted reserves restatement
Balance at 1 January 2022 (as previously stated) 240,041 237,701
Reclassification adjustment 1 January 2016–31 December 2021 (2,783) (2,783)
Restated opening reserves balance 1 January 2022 237,258 234,918
– –
Reclassification adjustment 1 January 2022–31 December 2022
Restated closing unrestricted reserves balance 31 December 2022 237,258 234,918
Restricted reserves restatement
Balance at 1 January 2022 (as previously stated) 10,556 10,556
Reclassification adjustment 1 January 2016–31 December 2021 2,783 2,783
Restated opening reserves balance 1 January 2022 13,339 13,339
– –
Reclassification adjustment 1 January 2022–31 December 2022
Restated closing restricted reserves balance 31 December 2022 13,339 13,339
----- End of picture text -----

An in-depth review and reconciliation of the charity’s restricted funds undertaken in the year identified some historical errors in opening fund balances dating back to periods prior to 2021. As a result, a restatement has been processed as demonstrated above to increase restricted funds by £2,783k and decrease unrestricted funds by the same amount. As the adjustment relates to periods prior to 2021, there is no effect on the SOFA in the comparative period.

TRUSTEES’ REPORT AND ACCOUNTS 2023 71

Notes to the accounts continued

YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
Total fixed Net current Pension scheme Total net
assets Investments assets Provisions liability assets
£’000 £’000 £’000 £’000 £’000 £’000
18. Analysis of group net assets
YEAR ENDED 31 DECEMBER 2023
a) GROUP
As at 31 December 2023
Endowment funds – 9,667 – – – 9,667
Restricted funds 108 – 18,545 – – 18,653
Unrestricted funds 48,425 138,635 83,658 (1,476) (18,719) 250,523
Total group funds 48,533 148,302 102,203 (1,476) (18,719) 278,843
b) CHARITY
As at 31 December 2023
Endowment funds – 9,667 – – – 9,667
Restricted funds – – 14,489 – – 14,489
Unrestricted funds 48,425 138,635 84,675 (1,473) (18,719) 251,543
Total charity funds 48,425 148,302 99,164 (1,473) (18,719) 275,699
YEAR ENDED 31 DECEMBER 2022
a) GROUP
As at 31 December 2022
Endowment funds – 9,022 – – – 9,022
Restricted funds restated 126 – 17,049 – – 17,175
Unrestricted funds restated 51,384 124,424 83,920 (575) (10,821) 248,332
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 restated – – 13,284 – – 13,284
Unrestricted funds restated 51,384 124,424 84,359 (575) (10,821) 248,771
Total charity funds 51,384 133,446 97,643 (575) (10,821) 271,077
----- End of picture text -----

Unrestricted funds include other charitable funds, designated funds and the pension reserve.

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TRUSTEES’ REPORT AND ACCOUNTS 2023

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At 1 January Additions Utilised/ Depreciation and At 31 December
2023 in year realised disposals 2023
£’000 £’000 £’000 £’000 £’000
19. Designated fund movements
Intangible fixed assets fund 7,610 44 – (1,145) 6,509
Tangible fixed assets fund 43,774 2,349 – (4,207) 41,916
Capital and project commitments 3,981 5,402 (3,981) – 5,402
Other designations 86,000 1,330 (9,986) – 77,344
Total designations 141,365 9,125 (13,967) (5,352) 131,171
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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 2023 (Note 12). Other designations are to support the transformation programme (£23.4m), investment in income generation activities (£22.7m), estate improvements (£15m), the branch development fund (£10m) and other operational programmes (£6.2m).

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|||||| |---|---|---|---|---| |RSPCA Trading Limited|RSPCA Assured Limited| |2023|2022|2023|2022| |£’000|£’000|£’000|£’000| |20. Subsidiary company undertakings| |Income and endowments from:| |Donations and legacies|–|–|–|80| |Charitable activities|–|–|5,652|5,208| |Other trading activities|1,719|1,367|12|11| |Total income|1,719|1,367|5,664|5,299| |Expenditure on:| |Charitable activities|–|–|5,977|4,287| |Raising funds|1,437|971|–|–| |Total expenditure|1,437|971|5,977|4,287| |–|–|–|–| |Net gains/(losses) on investments| |Net income/expenditure|282|396|(313)|1,012| |Taxation|–|–|–|–| |Gift Aid payable|(281)|(395)|–|–| |Surplus/(deficit)|1|1|(313)|1,013| |Total assets|1,359|1,083|4,276|4,416| |Total liabilities|(1,354)|(1,078)|(1,139)|(966)| |Total funds at 31 December|5|5|3,137|3,450|

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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.

TRUSTEES’ REPORT AND ACCOUNTS 2023

73

Notes to the accounts continued

YEAR ENDED 31 DECEMBER 2023

20. Subsidiary company undertakings (continued)

b) RSPCA Assured Limited (Company No: 02723670, Charity Nos: 1059879, SC038199)

Freedom Food Limited incorporated as a private company limited by shares (registered company number 02723670) in 1992, and began trading in 1994. On 17 May 2023 the company name changed to RSPCA Assured Limited in order to benefit from the consumer trust in the RSPCA brand as advocating for higher animal welfare.

c) RSPCA Europe

New entity registered in Belgium on 6 October 2023 but did not trade in the year. Further disclosure has been made in the Trustees’ report .

21. Branch legacies

During 2023, the RSPCA received £10.7m (2022: £9.4m) 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.

22. Legacies notified

As at 31 December 2023, the charity had been notified of 19 (2022: 16) high-value legacies (over £0.5m) within the year with an estimated value of £13m (2022: £13m). Interim payments of £4m have been received within 2023 and recognised as legacy income within 2023. Out of the remaining £13m, £7m has been accrued into 2023 as it meets the legacy accrual reocognition criteria as per note 1. £5m has not been accrued into 2023 as there is no grant of probate dated prior to 31 December 2023.

There are 479 cases cases notified in 2023 (excluding life interest and life interest residuary) which it has not been possible to value, and therefore these cases have not been accrued into 2023. In 2022, there were 380 such cases.

23. 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 2023 or 2022.

During 2023 the RSPCA did not provide the services of farm livestock officers to RSPCA Assured Ltd; therefore there were no reimbursed costs to the charity (2022: £128k).

During the year RSPCA Assured received nil (2022: £80k) from the RSPCA for the project Eat less, eat better .

The RSPCA paid salary-related costs to RSPCA Assured Ltd employees on behalf of RSPCA Assured Ltd and was reimbursed for the full amount.

RSPCA Trading Limited accrued a qualifying distribution to be paid to the RSPCA of £285k (2022: £395k) and made sales to the charity of £354k (2022: £134k).

During 2023, the RSPCA re-charged overheads to RSPCA Trading Limited of £394k (2022: £199k) and to RSPCA Assured Ltd of £403k (2022: £188k). The RSPCA charges its subsidiaries a quarterly management re-charge fee for subsidiary usage of shared overhead costs to ensure that all intragroup transactions take place on an arm’s-length basis. The methodology of calculating the management fee was reviewed in 2023 following an evolution of the activities of the entities within the Group since the last review date. A new methodology was approved in 2023 by the RSPCA Board of Trustees, the RSPCA Trading Limited Board of Directors and RSPCA Assured Board of Trustees. The new methodology has been applied to all four quarters within the 2023 financial year. All re-charges are made on an arm’s-length basis.

At the year end the charity was owed £1,144k (2022: £999k) by RSPCA Trading Limited and £418k (2022: £406k) by RSPCA Assured Ltd.

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74

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Group Group Charity Charity
2023 2022 2023 2022
£’000 £’000 £’000 £’000
24. 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 416 609 416 609
One to five years 596 232 596 232
Over five years 669 – 669 –
1,681 841 1,681 841
Operating leases for vehicles and equipment
Less than one year 87 107 59 59
One to five years 45 118 44 103
– – – –
Over five years
132 225 103 162
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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.

As part of the 2021 actuarial valuation, the RSPCA expects to pay contributions of around £2m in the year to 31 December 2024 (plus expenses, which are met directly).

The scheme has a trustees’ 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.

TRUSTEES’ REPORT AND ACCOUNTS 2023 75

Notes to the accounts continued

YEAR ENDED 31 DECEMBER 2023

At 31 December 2023
At 31 December 2022
25. Pensions continued
Principal actuarial assumptions
Discount rate 4.60% p.a.
4.80% p.a.
Infation (RPI) 2.90% p.a.
3.10% p.a.
Infation (CPI) 2.60% p.a.
2.80% p.a.
Revaluation of deferred pensions:
Post 09 pension 2.50% p.a.
2.50% p.a.
Pre 09 pension in excess of GMP 2.60% p.a.
2.80% p.a.
GMP Fixed
Fixed
Increases for pensions in payment:
GMP accrued before 5 April 1988 Nil
Nil
GMP accrued after 5 April 1988 2.15% p.a.
2.30% p.a.
XS pension accrued before 31 March 2008 2.55% p.a.
2.70% p.a.
Pension accrued after 31 March 2008 1.95% p.a.
2.05% p.a.
S3PA tables with CMI 2022
S3PA tables with CMI 2021
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
Retirement All members are assumed
to retire at age 61.5
All members are assumed to
retire at age 61.5
Withdrawal Alowance for members to leave
employment before retirement
Alowance for members to leave
employment before retirement
Life expectancy at age 65 of male aged 45 22.7
23.3
Life expectancy at age 65 of male aged 65 21.5
22.0
Life expectancy at age 65 of female aged 45 25.3
25.8
Life expectancy at age 65 of female aged 65 23.9
24.4

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TRUSTEES’ REPORT AND ACCOUNTS 2023

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% of the fair % of the fair value
Bid values as at Bid values as at
value of the total of the total plan
31 Dec 2023 31 Dec 2022
plan assets as at assets as at
£’000 £’000
31 Dec 2023 31 Dec 2022
25. Pensions continued
The current asset split is as follows:
Global equities 14,797 7% 12,159 6%
LDI funds 91,630 44% 88,265 43%
Diversified credit 20,576 10% 19,057 9%
Private multi liquid 35,624 17% 56,212 27%
Multi-asset funds 16,432 8% 16,422 8%
Currency hedging 46 0% (380) –
Property 14,202 7% 14,171 7%
Cash 13,830 7% 935 –
Total assets 207,137 100% 206,841 100%
At 31 Dec 2023 At 31 Dec 2022
£’000 £’000
Balance sheet
Fair value of assets 207,137 206,841
Present value of funded obligations (225,856) (217,662)
Deficit in scheme (18,719) (10,821)
Net defined benefit liability (18,719) (10,821)
Period to Period to
31 Dec 2023 31 Dec 2022
£’000 £’000
Amount recognised in the SOFA
Interest on liabilities 10,272 6,759
Interest on assets (9,800) (6,558)
Total charge to SOFA 472 201
Remeasurements over the period
Loss/(gain) on assets in excess of interest 4,072 124,400
Experience losses/(gains) on liabilities 7,446 19,718
Losses/(gains) from changes to demographic assumptions (3,618) (4,180)
Losses/(gains) from changes to financial assumptions 1,530 (138,251)
Total remeasurements 9,430 1,687
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TRUSTEES’ REPORT AND ACCOUNTS 2023

77

Notes to the accounts continued

YEAR ENDED 31 DECEMBER 2023

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Period to Period to
31 Dec 2023 31 Dec 2022
£’000 £’000
25. Pensions continued
Change in value of the assets
Fair value of assets at start 206,841 331,105
Interest on assets 9,800 6,558
Company contributions 2,004 2,171
Benefits paid (7,436) (8,593)
Return on assets less interest (4,072) (124,400)
Fair value of assets at end 207,137 206,841
Actual return on assets 5,728
Change in value of the DB liabilities
Value of liabilities at start 217,662 342,209
Interest on liabilities 10,272 6,759
Benefits paid (7,436) (8,593)
Experience (gain)/loss on liabilities 7,446 19,718
Changes to demographic assumptions (3,618) (4,180)
Changes to financial assumptions 1,530 (138,251)
Value of liabilities at end 225,856 217,662
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TRUSTEES’ REPORT AND ACCOUNTS 2023

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 gifted within a legacy and were added to the RSPCA’s funds in 2006. Following resolution from the Charity Commission, this fund was wound up in January 2024. The capital and income of the fund upon wind up was shared equally between the RSPCA, PDSA and Blue Cross in accordance with the terms of the Will.

Albekier Fund

The income from this fund is used for the RSPCA’s cat neutering scheme in London.

Restricted funds

The restricted funds of the group comprise the unexpended balances of donations, bequests and grants held on trust to be applied for specific purposes.

Overseas Fund

Income on the Overseas Fund is used to provide assistance for animal welfare overseas.

Regional funds

These comprise 10 separate funds to be used for regional purposes. The funds are hybrid and include restricted and designated elements. Additional disclosure has been provided by their classification as restricted.

The Tubney Grant Fund

The Tubney Charitable Trust 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

Coutts & Co Commercial Banking, 440 Strand, London WC2R 0QS NatWest Bank 9th Floor, 250 Bishopsgate, London EC2M 4AA

Investment advisers

Cazenove Capital, a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU

Independent auditors

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.

RSM UK Audit LLP, 25 Farringdon Street, London EC4A 4AB

Pension advisers

XPS Consulting Limited Phoenix House, 1 Station Hill, Reading, Berkshire RG1 1NB

Birmingham Fund

The RSPCA 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.

TRUSTEES’ REPORT AND ACCOUNTS 2023 79

RSPCA Board 2023

Board of Trustees

Who served in 2023

In 2020, René Olivieri was reappointed as chair until the AGM in 2023, and was subsequently reappointed for the period until 31 December 2023. In 2021, David Thomas was reappointed as vice-chair until the AGM in 2024, Karen Harley was appointed as treasurer until the AGM in 2023, and was subsequently reappointed until the AGM in 2026. Richard Booker was reappointed in 2022 as chair of the Branch Affairs Committee until the AGM in 2024.

Co-opted committee members

Who served in 2023

Committees

  1. Finance, Audit and Risk Committee (FARCOM)

  2. Animal Welfare Committee

  3. Branch Affairs Committee (BAC)

  4. Governance and Nominations Committee

  5. Investment Committee

  6. Remuneration Committee

  7. RSPCA Pension Scheme Limited Board

  8. RSPCA Trading Limited Board

  9. RSPCA Assured Limited Board

  10. (name changed from Freedom Food Limited March 2023)

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 2023 committees are listed above. During 2023, 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

President

Vice-Presidents

Senior management

At 31 December 2023

80 TRUSTEES’ REPORT AND ACCOUNTS 2023

-j.li

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