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2022-12-31-accounts

Impact Report and Financial Statements Impact Report 31 December 2022 31 December 2022

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CONTENTS

Impact Report

2022 highlights

President and Chief Executive’s foreword

Making an impact – Our work in 2022

Trustees’ responsibility statement

Independent auditor’s report

Financial Statements

About this report

Our governance

2 Impact Report 2022

Impact Report 2022 3

Our values

Courage

Innovation

Respect

4 Impact Report 2022

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Registrar, Dr Trudi Seneviratne
President, Dr Adrian James
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Our vision for 2021-23

A strong and progressive College that opposes all forms of discrimination and helps its members deliver high-quality person-centred care, for people of all ages, around the world.

Our mission statement

The College works to secure the best outcomes for people with mental illness, intellectual disabilities and developmental disorders by promoting excellent mental health services, supporting the prevention of mental illness, training outstanding psychiatrists, promoting quality and research, setting standards and being the voice of psychiatry.

Our strategic priorities

1. Equality and diversity

2. Parity of esteem

3. Workforce wellbeing, and

4. Sustainability.

6 Impact Report 2022

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Treasurer, Professor John Crichton
Dean, Professor Subodh Dave
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Our core objectives

1. Supporting members through COVID-19 and beyond

2. Delivering education, training and research in psychiatry

3. Promoting recruitment and retention in psychiatry

4. Improving standards and quality across psychiatry and wider mental health services, and support the prevention of mental ill health

5. Being the voice of psychiatry

6. Supporting psychiatrists to achieve their professional potential, by providing an excellent member experience, and

7. Ensuring effective management of College resources and delivering excellent employee experience.

Our organisational competencies

Fairness

We ensure our processes are fair so that all people, regardless of background or characteristics, have equality of opportunity and treatment.

Allyship

We recognise our responsibility to support those from marginalised groups and call out discrimination and bias when we see it.

Coproduction

We believe that patients and carers should be respected, valued and empowered to coproduce College workstreams and programmes.

Impact Report 2022 7

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President Dr Adrian James and Honorary Fellow Professor Henrietta Bowden-Jones
President-Elect Dr Lade Smith and Dr Raj Mohan
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Our highlights 2022

Our Choose Psychiatry campaign helped ensure another 100% fill rate in core psychiatric training places across all four nations of the UK.

We ended the year with a record high of 20,437 members.

We won more accolades at the ‘memcom’ UK membership sector awards than any other health body – winning Best Equality, Diversity and Inclusion Campaign; Best Recruitment/Retention Strategy; as well as Highly Commended for Best Member Support; Best Website/App; and Best Member Event.

~~W~~ e suc ~~ce~~ ssfully rolled out a blended model of service delivery with 66 face-tofa ~~c~~ e cer ~~em~~ onies and events; 310 online ceremonies and events; and 22 hybrid ~~c~~ ere ~~mo~~ nies and events – with a total of 41,819 attendees.

We saw a record aggregate of 4,943 candidates sitting our MRCPsych examination.

We held our first in-person International Congress, in Edinburgh, after the peak of the pandemic, with 2,478 attendees.

8 Impact Report 2022

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RCPsych CEO Paul Rees
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Our Chief Executive Paul Rees was awarded an MBE for services to mental health, and equality, diversity and inclusion.

We set the agenda on mental health, generating 11,387 media mentions – securing an aggregate reach of 841,300,000, our second highest reach figure ever.

We supported 1,552 mental health services across the UK and beyond to improve the quality of patient care through the work of our 28 CCQI quality and accreditation networks.

We continued to run the biggest quality improvement workstream in mental health globally, through which we helped services systematically enhance their work.

We saw the highest turnout in an RCPsych Presidential election since 1993, with 39.4% of members voting in a ballot that saw Dr Lade Smith CBE elected as the next College President.

Our staff gender pay gap narrowed to 2.85%, compared to a national average of 15.4%.

Our staff ethnicity pay gap narrowed to 5.81%, compared to an average in London of up to 24%.

We won a Stonewall Gold Award, in February 2023, for our entry into the Stonewall Workplace Equality Index – which saw us being ranked as the 90[th] top employer body in the UK for creating an LGBTQ+ inclusive environment.

We were accredited as a Level 2 member of the Disability Confident Employer Scheme.

Impact Report 2022 9

President and Chief Executive’s foreword

Last year was another successful one for the College.

Our Choose Psychiatry campaign helped ensure another 100% fill rate in core psychiatric training places across all four nations of the UK.

We also influenced the creation of an additional:

At the ‘memcom’ UK membership sector awards, we won more awards than any other medical royal college.

To win the prize for the Best Equality, Diversity and Inclusion campaign, as well as for the Best Recruitment/Retention strategy was excellent.

Meanwhile, being Highly Commended for Best Member Support, as well as for Best Website/App; and Best Member Event was a fantastic achievement.

We were also delighted to be awarded a Stonewall Gold Award, in February 2023, having been ranked the 90th top UK employer for our work creating an LGBTQ+ inclusive environment over the previous year.

In 2022, we also saw our membership reach a record high of 20,437, up from 19,796 members last year.

Our international membership continued to grow, with 3,790 members based outside the UK.

Throughout the year, we rolled out a new blended model of service and activity delivery, which followed the lifting of the last lockdown measures in the UK.

10 Impact Report 2022

We delivered 310 online ceremonies and events; 66 face-to-face ceremonies and events; and 22 hybrid ceremonies and events – with a total of 41,819 attendees.

Our biggest single in-person event was our first face-to-face International Congress since 2019, which saw 2,478 members converge on Edinburgh. Many more members signed up to watch recordings of the sessions.

Moving to a blended model required a lot of effort and investment, and we would like to thank all our volunteers across the four nations of the UK, as well as our dedicated staff team, for enabling us to make the latest switch almost seamlessly.

Our MRCPsych exam remained online throughout the year, and a record aggregate of 4,943 candidates sat the exam.

At the same time, we continued to shape the debate by generating regular highprofile media coverage, with 11,387 media mentions and an aggregate reach of 841,300,000 people. This was our second highest media reach figure in a single year ever.

In December, we opened the ballot for our next President, and were thrilled to see the eventual turnout reach 39.4% of members – the highest figure since 1993. Dr Lade Smith CBE eventually won the poll and when she becomes President on 11 July, she will be our first Black President and

our fifth female leader. It is a truly historic moment for our College.

The other two candidates Dr Kate Lovett and Professor Russell Razzaque fought excellent campaigns and we are lucky to have them as two of our most senior members.

During the year, we were appalled to see the catastrophic failings in some services – as highlighted in the Panorama and Dispatches TV programmes. We would like to apologise to patients and carers alike for the terrible treatment that was highlighted. We will do all in our power to help counteract toxic cultures that exist in some services.

Meanwhile, thousands of psychiatrists and members of the multi-disciplinary teams continued to deliver excellent patient care across the four nations of the UK despite the challenges arising in the aftermath of the pandemic, a long-term lack of resourcing, and burgeoning cost of living crisis.

We would like to thank you for all that you do to continue to deliver excellent patient care in such trying circumstances.

Dr Adrian James President

Paul Rees MBE Chief Executive

Impact Report 2022 11

Equality and Diversity

Having published the RCPsych Equality Action Plan in January 2021, we continued to roll out our work on equality, diversity and inclusion.

By the end of 2022, we had achieved 22 out of the 29 actions contained in the three-year plan.

We carried out ground-breaking research to understand the experiences of members who identify as LGBTQ+ and found that one in two LGBTQ+ psychiatrists have experienced hostility at work.

We subsequently published 12 goals for mental health employer bodies in promoting LGBTQ+ friendly workplaces for staff.

We continued to run high-profile events to mark diversity celebrations, such as Pride, South Asian History Month, Black History Month, International Day of People with Disabilities and International Women’s Day – with podcasts, videos, webinars, social media activity and coverage in our membership magazine.

Meanwhile, among our 543 staff, we saw a further narrowing of our gender pay gap to 2.85%, with women earning more on average than men. This is compared to a national average of 15.4%.

We also reported that our ethnicity pay gap was 5.81%, with Black, Asian and Minority Ethnic staff earning more on average than White staff. This is compared to an average ethnicity pay gap of around 24% in London.

We won a Stonewall Gold Award, in February 2023, for our entry into the Stonewall Workplace Equality Index – which saw us being ranked as the 90th top employer body in the UK for creating an LGBTQ+ inclusive environment. And were accredited as a Level 2 member of the Disability Confident Employer Scheme.

We also won the ‘memcom’ UK membership sector award for Best Equality, Diversity and Inclusion Campaign.

In addition, our Chief Executive Paul Rees was awarded an MBE for services to mental health, and equality, diversity and inclusion.

12 Impact Report 2022

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Actions
430
Target
Actions
Completed [408]
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We achieved 408 of 430 actions on equality, diversity and inclusion .

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29 Total Actions
2023
Target
Actions
2022 7 Achieved
Actions
2021 15 Achieved
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2,282 members responded to our survey – the first ever LGBTQ+ member survey by a medical royal college.

We completed 7 further actions in the . three-year action plan

90[th] top employer in the UK promoting an LGBTQ+ workplace.

Our Chief Executive Paul Rees was awarded an MBE for services to mental health, and equality, diversity and inclusion.

Impact Report 2022 13

Parity of esteem

Our advocacy work saw us influence the announcement of an additional £75m capital funding in August, to help parts of the mental health system invest in more beds and other urgent and emergency care to tackle acute bed pressures.

We also helped persuade the Government to agree to an extra £150m investment over the next three years to better support people in crisis outside of A&E and enhance patient safety.

We called for urgent funding to support mental health services during winter 2022/23, and £11m has been secured by NHS England to do this.

Our influencing for the Health and Care Act 2022 supported the inclusion of new measures to improve the transparency of spending, requiring the Health Secretary to publish each financial year government expectations as to increases in the amount in, and in the proportion of, mental health spending by NHS England and Integrated Care Boards.

The Act also requires the Health Secretary to publish, at least once every five years, a report describing the system for assessing and meeting the workforce needs of the health service in England.

Within the College, we continued to work to our Working Together model for engagement with patients and carers – which places coproduction at the heart of our work – with 155 patients and carers carrying out 253 patient and carer roles across the College.

14 Impact Report 2022

an additional £75m capital funding.

an extra £150m investment

We secured £11m funding to

has 155 patients and carers carrying out 253 patient and carer roles.

Workforce wellbeing

Throughout 2022, we supported our members as they faced the increasing challenges of working on the frontline.

In the autumn, we carried out three in-depth, qualitative focus groups with a small number of members – 15 – as a follow up to the quantitative membership survey in 2021.

This research indicated that our members had found their workloads on the frontline had increased significantly during the previous year, and was becoming unmanageable.

They highlighted the continuous rise in the number of mental health patients, with waiting lists still expanding, rising pressure to continuously move patients out of beds, staff shortages, a high turnover of staff and a lack of sufficient administrative support.

As a result, some members said they were ‘tired’, ‘exhausted’ and ‘frustrated’ and feeling ‘helpless’ and ‘hopeless’.

Against this backdrop, it was vital that we provided support to our members with their wellbeing.

Our Psychiatrists’ Support Service (PSS) – which provides free, high-quality peer support to psychiatrists experiencing particular challenges – delivered support direct to 57 members.

The main PSS page on our website received 586 unique visitors, with 1,000 visits for the whole PSS section on the site.

We also continued to deliver our Startwell programmes for consultants and SAS doctors, providing advice on issues such as personal resilience, making connections and using support effectively.

16 Impact Report 2022

Members said workloads have over increased significantly the last year.

Members report a continuous rise in the number of mental health patients.

We continued to deliver our Startwell p ~~r~~ ogrammes for consultants and SAS doctors.

Our Psychiatrists' Support Service (PSS) delivered support to 57 psychiatrists on a one-to-one basis.

Impact Report 2022 17

Sustainability

During 2022, the College fleshed out its plan to get to net zero by 2040 – which includes a sharp reduction in travel by plane and the installation of air source heat pumps and solar panels at our main office, at 21 Prescot Street, central London.

We made substantial strides to reduce its carbon footprint through air travel.

In 2019, the last ‘normal’ year, the College generated 179 international flights and 700 domestic flights. But in 2022, even though the world was opening up once again, the College generated just 73 international flights and 155 domestic flights.

The College was commissioned by NHS England to establish a net zero mental health commission. The project will develop a guide to delivering net zero care and provide resources and a learning community to support services to work towards to this.

During 2022, we completed the second phase of the LED lighting upgrade in members and events areas and installed air source heat pumps within the reception area.

Our carbon emissions continued to be well down on where they were in the pre-pandemic era. In 2019, we generated 464 tonnes of carbon through our buildings and travel. In 2020, this figure fell to 257 tonnes, in 2021 the figure was 306 tonnes. In 2022, we generated 320 tonnes.

18 Impact Report 2022

Our CO2 emissions were well down from 464 tonnes in 2019 to 320 tonnes in 2022.

The College generated just 73 international flights and 155 domestic flights. This meant there was a 74% reduction in total flights.

The College was commissioned by NHS England to establish a net zero mental health commission.

We completed the second phase of the LED lighting upgrade in members and events areas.

Impact Report 2022 19

Supporting members through COVID-19 and beyond

We continued to deliver our MRCPsych exam virtually – with an aggregate of 4,943 candidate sittings of our digital exam, which represented a 5% increase on 2021.

Through a number of diets, there was an aggregate of 1,183 candidate sittings of our virtual Clinical Assessment of Skills and Competencies (CASC) and 3,760 candidate sittings of our virtual written Papers A and B.

We successfully rolled out a blended model with 66 face-to-face ceremonies and events; 310 online ceremonies and events; and 22 hybrid ceremonies and events – with a total of 41,819 delegates.

We held our first in-person International Congress, after the peak of the pandemic, in Edinburgh, with 2,478 attendees.

The section on our website on how to deliver mental health services in the face of COVID-19 received 15,400 visits.

With many mental health services still implementing social distancing for much of 2022, we delivered 504 virtual peer review visits – out of a total of 645 visits – to mental health services, across the four nations and beyond, via our College Centre for Quality Improvement (CCQI) quality and accreditation networks.

We lost money on our investments as a result of economic conditions, meaning we ended up posting an overall deficit. However, we ended up delivering a surplus on day-to-day operational activities – having delivered unrestricted surpluses in 2020 and 2021.

20 Impact Report 2022

virtually with 4,943 candidates representing a 5% increase on 2021.

We delivered a blended model with 66 face-to-face ceremonies and events; 310 online ceremonies and events; and 22 hybrid ceremonies and events with 41,819 delegates.

2,478 attendees.

We delivered 504 virtual peer review visits to mental health services, and 141

Delivering education, training and promoting research in psychiatry

During 2022, an aggregate of 4,943 candidates sat our digital exam.

In our digitised Clinical Assessment of Skills and Competencies (CASC):

When it came to our Papers A and B:

Our portfolio of learned books and journals – produced in partnership with Cambridge University Press – continued to promote insight and learning across psychiatry.

The BJPsych had an impact factor of 10.671, up from 9.319 – making it seventeenth out of 155 journals on psychiatry globally. It was also the most downloaded journal on the Cambridge University Press website – with 3.8m full text downloads.

Our new curricula were launched in August. The new curricula are shorter and simpler than the previous ones.

22 Impact Report 2022

CASC diet exam pass rates in 2022 were 56.3% in January and 53.8% in September.

Paper A pass rates in 2022 were 48.8% in June and 46.2% in December. Paper B pass rates were 67.4% in April and 72.3% in September.

Our distinguished journal the BJPsych became the seventeenthmost influential journal in psychiatry globally out of 155 publications.

The was the most BJPsych downloaded journal on the Cambridge University Press website.

Impact Report 2022 23

Meanwhile, during the year, we issued annual certificates for 8,177 members, who chose to use our CPD submissions process to support their appraisal and revalidation.

We also provided CPD support through our CPD eLearning platform – which hosted 209 modules and 175 podcasts.

In 2022, 19,562 certificates were generated for CPD eLearning modules and 5,320 were generated for eLearning podcasts.

In addition, 1,777 certificates were generated for Trainees Online modules and 407 were generated for Neptune modules.

Meanwhile, 1,873 certificates were generated for Section 12 Induction modules and 266 were generated for the Section 12 Refresher module.

During the same period, 1,794 certificates were generated for the Approved Clinician Induction modules and 384 were generated for the Approved Clinician Refresher Module.

Our Public Mental Health Implementation Centre (PMHIC) published three reports:

Meanwhile, we also supported 25 overseas psychiatrists to enhance their training through access to NHS posts through the Medical Training Initiative.

The marketing material we issued for a member event, due to take place on 10 June, on supporting patients with a personality disorder came in for heavy criticism and led to an apology being issued by our President and Chief Executive.

The marketing material was seen by many as being disrespectful to patients with a personality disorder.

As well as issuing an apology, we cancelled the event, and asked our National Collaborating Centre for Mental Health (NCCMH) to run a process to review the issue of stigma, prejudice, the use of language, and treatment of people with a diagnosis of personality disorder.

24 Impact Report 2022

We issued annual certificates for 8,177 members, who chose to use our CPD submissions process.

209 modules and 175 were available via CPD podcasts eLearning.

1,777 certificates were generated for Trainees Online modules .

19,562 certificates were generated for CPD eLearning modules and 5,320 were generated for . eLearning podcasts

Impact Report 2022 25

Promoting recruitment and retention in psychiatry

The annual round of our award-winning Choose Psychiatry campaign took place in October and November – and was the most successful in terms of visits to the College website and engagement via social media.

The campaign pages were visited three times more than in 2021 and visits to Become a Psychiatrist section of the College website were up by 150%.

The media launch of the campaign saw us generate a national media story, based on polling that showed the importance of the psychiatric workforce. The story achieved a potential reach of 1.8m including The Guardian, Daily Mail, Marie Claire, LBC and the Daily Express.

For the first time ever, the campaign – which was first launched in 2017 – featured films covering the work of every College Faculty.

We received support from celebrities and mental health campaigners, such as Stephen Fry and Alastair Campbell, who shared the Choose Psychiatry message with their Twitter followers, helping us reach a potential audience of nearly 15m people.

The positive impact of the Choose Psychiatry campaign continued to be felt, with another 100% fill rate for core psychiatric training places in England, Scotland, Wales and Northern Ireland.

During the year, we approved 917 job descriptions for consultant and speciality grade roles in England, Wales and Northern Ireland – to ensure that the demands of the posts were realistic and had sufficient emphasis on the quality of patient care.

Meanwhile, we continued to work closely with University Psychiatric Societies and supported the 2022 National Student Psychiatry Conference, hosted by Dundee Psych Soc in February, and attended by 96 delegates.

We offered mentoring support and funding to 18 Psych Stars, including eight Faculty Psych Stars.

26 Impact Report 2022

be felt, with another 100% fill rate for core

We influenced the creation of 150

We influenced the creation of 15 core

We influenced the creation of 8 core and 7 training posts speciality

Impact Report 2022 27

Improving standards and quality across psychiatry and wider mental health services, and supporting the prevention of mental ill health

The College Centre for Quality Improvement (CCQI) provided support to the 1,552 mental health services in membership of its quality and accreditation networks.

Through this service, more than 50,000 members of the multidisciplinary team in mental health services received advice and assistance on meeting standards and improving the quality of care.

In order to support the work of the quality and accreditation networks, CCQI completed 645 peer reviews – 141 of which were in person and 504 were online.

One CCQI webinar, on gender identity, triggered controversy when a small number of anonymous delegates posted comments in the chat – only visible to the speakers – that were hectoring, hostile and sustained.

The four speakers, who were all non-binary or trans, were upset by the disrespectful comments. The College tweeted to apologise to the speakers for the comments, which we said were not in line with our value of Respect. The tweet received 1,000 likes, which was more likes than for any previous College tweet. However, it also generated more than 600 negative tweets in response.

We continued to deliver the National Clinical Audit of Psychosis and the National Audit of Dementia, as well as the Prescribing Observatory for Mental Health that supports mental health services across the UK to improve their prescribing practice.

During 2022, our National Collaborating Centre for Mental Health (NCCMH) continued to deliver the largest quality improvement collaborative in mental health globally – providing support to 100 mental health services on how to continuously improve the quality of their patient care using the quality improvement methodology.

The programmes run in 2022 included the Suicide Prevention programme, the Quality Improvement in Tobacco Treatment programme, and the Advancing Mental Health Equality (AMHE) quality improvement programme – which helps services address health inequalities.

28 Impact Report 2022

Membership of the CCQI networks held steady at just under 1,552 mental health services, which were based right across the four nations and beyond.

Through our CCQI networks we supported 50,000 members of the multi-disciplinary team .

Our ground-breaking programme of Quality Improvement ( ~~QI)~~ collaboratives provided support to 100 mental health services across the UK to improve their practice.

We completed 645 peer reviews , 141 in person and 504 online.

Impact Report 2022 29

NCCMH also ran the Enjoying Work quality improvement collaborative, which demonstrably improved aspects of job satisfaction in participating services.

In May, we published the Medical Emergencies in Eating Disorders (MEED) guidance – with subsequent media coverage about the document achieving an aggregate reach of 181m.

The MEED report provided a comprehensive overview of the latest evidence associated with eating disorders – and became the most downloaded document on our website since 2018. It was downloaded over 20,000 times and the report’s landing page had over 45,000 page views.

Meanwhile, we helped to deliver the West Ugandan Mental Health Project, which was funded by a grant from the Tropical Health and Education Trust (THET).

The project was a 12-month piece of work, delivered in partnership with the East London Foundation Trust. It led to the training of more than 350 frontline medical professionals in the World Health Organisation’s Mental Health Gap methodology.

We also trained 50 trainees in Old Age, Forensic, Addictions and Child and Adolescent Psychiatry in Ghana, again with support from THET.

We offered support to colleagues in Ukraine and neighbouring countries, receiving Ukrainian refugees – including delivering two webinars, with more than 300 colleagues in attendance.

We provided guidance for medical specialties on how to support the mental wellbeing of Ukrainian refugees arriving in the UK, with the guidance being continuously referenced in Parliament.

During the course of the year, 77 members assisted us with our international work on a voluntary basis.

30 Impact Report 2022

Our Enjoying Work quality improvement collaborative improved aspects of job satisfaction in participating services.

Our Medical Emergencies in Eating Disorders guidance was downloaded 20,000 times.

We achieved an aggregate reach of 181m people through the media coverage we generated on our Medical Emergencies in Eating Disorders (MEED) guidance.

We offered support to colleagues in Ukraine , including delivering two webinars with more than 300 colleagues in attendance.

Impact Report 2022 31

Being the voice of psychiatry

During 2022, we achieved our second highest media reach ever, with an aggregate reach of 841m people – up from an aggregate reach of 712.5m people in 2021.

Behind this were 11,387 media mentions – which was our third highest media mentions figure ever.

We secured six top stories on the Today programme and two front page stories in the national press.

We also achieved our second highest number of mentions and appearances in the Houses of Parliament, with 23 mentions in the Commons, 18 mentions in the Lords, and six appearances at Parliamentary committees.

The College supported the development of newly published NICE guidance on managing depression in adults, which focuses on shared decision-making with patients about the available treatment options, including prescribing of antidepressants and electroconvulsive therapy.

In July, we submitted the College’s substantive response to the crossgovernment mental health and wellbeing plan to the Department of Health and Social Care, following extensive consultation with members.

Our response set out our vision of a world-leading mental healthcare system to be created in England by 2035, underpinned by almost four hundred College recommendations.

In our response, we called for the expansion of programmes to support those people who are receiving help for common mental health problems, to also have access to an employment adviser, with the Department of Work and Pensions announcing £122m investment into this area.

During 2022, we met with 36 MPs and over 60 Parliamentarians overall. We met with ministers and shadow ministers over 15 times, including attending four meetings with the Mental Health Minister Gillian Keegan, and meeting with the Shadow Mental Health Minister Dr Rosena Allin-Khan. We also attended roundtables with the then Health Secretaries Sajid Javid and Dr Thérèse Coffey.

32 Impact Report 2022

We had 11,387 media mentions overall – with an aggregate reach of 841m . people

We secured 6 top stories on Radio 4’s Today programme.

We had ~~60 m~~ eetings with Ministers and parliamentarians in Westminster.

We were ~~mentio~~ ned or appeared 47 times in Parliament through statements by politicians and appearances at Parliamentary committees.

Impact Report 2022 33

RCPsych in Scotland’s What Good Looks Like campaign led to the development of quality standards for secondary mental health services.

Following the campaign, the Scottish Government has committed to developing Scotland’s first mental health workforce plan, with the College now actively engaging on the development of this plan.

The RCPsych in Northern Ireland secured key strategic places on the Department of Health workstreams, allowing us to substantially influence the content of the mental health workforce review, which was launched during the year by Health Minister Robin Swann.

We launched our manifesto for the Northern Ireland Assembly election, called Close the Gap , and held meetings with five political parties in the lead up to the election, with all of them adopting a number of our asks within their party manifestos.

RCPsych Policy Officer Thomas McKeever was awarded an Investor in Mental Health Award, by Aware, for his significant contribution to improving mental health.

The RCPsych in Wales informed the development of the Health Education and Improvement Wales Mental Health Workforce Plan. The plan gives several commitments to psychiatry, including the redesign of the training and education programme.

We also established the Royal College Mental Health Expert Advisory Group, in Wales, with partners across the sector, issuing our first annual report of activity in the Senedd in November.

Meanwhile, during 2022, the College website had 5.67m visits and 8.6m page views.

We continued to have the highest following on social media of any medical royal college – with 109,500 followers on Twitter, 20,450 followers on Facebook, 20,900 followers on LinkedIn, and 6,400 followers on Instagram.

34 Impact Report 2022

www.

Our website had 5.67m visits, with 8.6m page views.

We had 109,500 followers on Twitter and 20,450 on Facebook.

We had 20,900 followers on LinkedIn and 6,400 on Instagram.

Supporting psychiatrists to achieve their professional potential, by providing an excellent member experience

Towards the end of the year, we ran the election for our eighteenth President – in a poll contested by Dr Kate Lovett, Professor Russell Razzaque and Dr Lade Smith CBE.

When the ballot closed in January, 39.4% of our members had cast their vote – the highest turnout for 30 years.

On first preference votes, Lade secured 42.8% (2,720) of the vote, Kate won 30.9% (1,963), and Russell won 26.4% (1,678).

When Russell was eliminated and the second preferences of those who placed him as their first choice were included, in a second round, Lade won 54.1% (3,443), while Kate won 39.7% (2,526). Meanwhile, 6.2% (392) of the electorate were members who had voted for Russell as their first choice but expressed no second preference.

Lade will replace President Dr Adrian James when he demits office on 11 July, at our AGM, in Liverpool.

She will be the College’s first Black President and the first Black female President of any UK medical royal college.

Last year, at our AGM, held during our International Congress in Edinburgh we put forward a series of proposed constitutional changes.

The changes – approved by Council and Trustees – included proposals to extend voting rights to College Affiliates and enable the College to routinely hold online/hybrid AGMs and EGMs.

In the first vote, 62% of members expressing a view voted in support of the proposed changes.

36 Impact Report 2022

Our presidential election had a 39.4% voting turn out rate – the highest for 30 years.

VOTE

On preference votes, Lade Smith CBE secured 42.8% of the vote.

VOTE

On the second preference votes Lade won 54.1% of the vote.

Lade will be the College’s Black President and the Black female President of first any UK medical royal college.

Impact Report 2022 37

However, the proposals immediately fell – as the College Officers had needed the backing of a two-thirds majority among those expressing a view, for them to be taken through a further series of votes.

Three months later, in September, a similar set of proposals were put forward at an EGM. This was held in nine locations across the UK concurrently, with all the sites being joined up by IT connectivity.

However, the meeting was abandoned after half an hour when we received the sad news that The Queen had passed away.

Consequently, we held a Special Meeting in November to propose one change: that we be enabled to routinely hold online/ hybrid AGMs and EGMs. This time, the proposal was carried unanimously. This change was signed off by the Privy Council in April 2023, in time for our 2023 AGM.

At the International Congress, we held heats for our new Mindmasters quiz, with questions on psychiatry and general knowledge. The competition, which featured teams from our Devolved Nations and English Divisions, was devised by our Dean Professor Subodh Dave, and hosted by Dr Suhana Ahmed and Dr Derek Tracy.

The semi-final and final were held five months later at 21 Prescot Street, in November. The final was contested by a team representing the Northern Ireland Devolved Council and a team representing the Scottish Devolved Council – with Northern Ireland being the eventual winners.

Over the course of the year, our membership figure increased to 20,437, up from 19,796 in 2021.

Forty-six per cent of members in 2022 were female and 40% were Black, Asian and Minority Ethnic. Eighteen per cent were based outside the UK. According to our 2021 membership survey, 7% of members define themselves as LGBTQ+ and 8% have a disability.

38 Impact Report 2022

At a Special Meeting in November, members voted to allow the College to hold AGMs online/hybrid and EGMs in the future.

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winners
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The Northern Ireland Devolved Council team won our new . Mindmasters quiz

Our 2022 membership figure increased to 20,437 .

We had 3,790 of our members based outside the UK .

Impact Report 2022 39

Ensuring the effective use of College resources and delivering an excellent staff experience

Our Trustee Board held its annual Board Review Day on 1 December, at which it assessed to what extent it was working in line with the Charity Commission Governance Code for Large Charities – finding that there was a high degree of compliance.

Throughout the year, we ensured our 230 committees – such as our Faculties, Divisions and Special Interest Groups (SIGs) – received excellent staff support and our Finance team made sure that effective, reliable management information was provided to volunteer members on key committees and staff alike.

Our gender pay gap narrowed to 2.85%, with women earning more on average than men.

Our ethnicity pay gap was 5.81%, with Black, Asian and Minority Ethnic staff earning more on average than White staff.

Our ethnicity pay report, published in August, showed that 21% of our staff are Black, Asian and Minority Ethnic, with:

40 Impact Report 2022

72% of people in our upper pay

19% of people in our upper pay

72% said they are coping well

83% said they feel able to bring up

Impact Report 2022 41

We won a Stonewall Gold Award, in February 2023, for our entry into the Stonewall Workplace Equality Index – which saw us being ranked as the 90th top employer body in the UK for creating an LGBTQ+ inclusive environment.

In October, we carried out our latest annual employee survey, which was completed by 89% of our 232 employees.

The results were largely positive, with:

Meanwhile, we carried out our latest annual patient and carer representative survey – as patients and carers are employed by the College as workers.

Again, the results were largely positive, with:

42 Impact Report 2022

59% said that their morale was high or . very high

87% said they thought the College was a good employer when it comes to promoting equality, diversity and inclusion .

89% of patient and carer feel the representatives College provides them with the support they need.

77% of patient and carer representatives feel that information about things that will affect them in their role is . shared effectively

Impact Report 2022 43

Environment

The College made significant commitments to Sustainability within its strategic plan for 2021-23 in its stated goal to be an exemplar medical royal college in terms of environmental policy and sustainability, and support members and mental health services to better understand the impact of sustainability and the climate crisis on mental health.

1. To produce a plan to improve the environmental impact of College activities

2. Invest in companies that make a positive impact on at least one of the 17 UN Sustainable Development Goals

3. Carry over learning from the pandemic, to minimise travel and face-to-face meetings by increased utilisation of virtual meetings and technologies, to reduce travel and paper

4. Promote sustainable forms of prescribing to reduce the overall carbon footprint of medications

5. Work with NHS and Government to advocate actions which support the NHS Green Plan

6. Take a concerted approach to improve understanding of interactions between the climate crisis and mental health matters

7. Promote the use of telepsychiatry and electronic prescribing when it is in the best interests of patients.

44 Impact Report 2022

During 2022 we completed the second phase of the LED lighting upgrade in members and events areas, continued to reduce travel from 2019 figures and installed air source heat pumps within the reception area. The College has also completed significant work to establish its journey to net-zero by 2040. In 2023, the College aims to:

Streamlined Energy and carbon report (SECR)

The College is now reporting to the new UK Streamlined Energy and Carbon Reporting (SECR) requirements. It should be noted that neither 2021 nor 2020 is likely to be representative of a typical year. The table shown follows the guidelines set out in the UK Government Environmental Reporting guidelines.

As we move forward, we aim to improve our carbon reporting to align with work we will conduct on the journey to net-zero by 2040.

Unit 2022
2021
Energy Consumption
KwH		 1,641,131
1,552,899
tCO2
Scope 1
Gas		 155.0
208.7
Scope 2
tCO2
Electricity		 154.7
97.0
Scope 3
tCO2
Business travel (where the College is
responsible for the reimbursement of fuel)		 10.4
0.5
Total Gross tCO2
tCO2		 319.8
306.2
Intensity ratio
Per member		 0.01590
0.01572

Intensity ratio

We have chosen to display the tCO2 as per member as the best metric to be able to compare year on year emissions. The average number of members during 2020 has been used as an appropriate metric to calculate the College’s intensity ratio and this methodology will be retained for future reports.

Methodology applied

The 2019 HM Government Environmental Reporting Guidelines have been applied, along with the 2020 UK Government’s Conversion Factors for Company Reporting.

Impact Report 2022 45

Trustees’ responsibilities statement in relation to the accounts

In preparing the attached accounts the Treasurer is required to:

The Trustees have a collective responsibility for keeping accounting records that disclose, with reasonable accuracy, at any time, the financial position of the College and enable members of Board of Trustees to ensure that the accounts comply with the provisions of the Supplemental Charter and Bye-Laws, the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Members of Board of Trustees confirm that, so far as they are aware, there is no relevant audit information of which the College’s auditors are unaware. They have taken all the steps that they ought to have taken as members of Board of Trustees to make themselves aware of any relevant audit information and to establish that the College’s auditors are aware of that information.

46 Trustees’ responsibility statement

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Our central London main office
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Treasurer’s Report and Financial Review

It is with great pleasure that I present the annual accounts of the Royal College of Psychiatrists for the financial year ending 31 December 2022, prepared in accordance with the Charity SORP and FRS 102.

Financial Overview

Restricted 2022
£’000
Restricted 2021
£’000
Unrestricted 2022
£’000
Unrestricted 2021
£’000
Total 2021
£’000
Total 2022
£’000
Income 2,861
2,892
19,894
18,207
22,755
21,099
Expenditure (2,756)
(2,808)
(20,402)
(17,698)
(23,158)
(20,506)
Surplus/ (defcit) before investment gains/(losses) 105
84
(508)
509
(403)
593
(Losses)/gains on investment –
–
(1,768)
2,209
(1,768)
2,209
(Defcit)/surplus after investment gains/(losses) 105
84
(2,276)
2,718
(2,171)
2,802

Treasurer's report & financial review 47

2022 was a year of significant change for the College with the return to face-to-face events and hybrid events and staff returning to work in the office for at least two days a week after being entirely online during the pandemic restrictions.

The refurbishment of the offices in 2021 and investing in audio visual equipment and staff during 2022 helped to support hybrid, online and face-to-face events. The cost of this additional investment in new capacity to deliver more types of events affected the results for the year as did the rapid increase in inflation.

The College used some of the reserves it had built up over several years to support these major changes and mitigate the impact of the wider economic situation to allow the College to continue to support members in a particularly challenging year. Reserves remain above the target set by the Board of Trustees and the Board of Trustees will continue to monitor the situation and ensure a prudent approach to the use of reserves and ensuring they remain at an appropriate level.

The investment portfolio, invested on a sustainable basis, was affected by economic conditions and stock markets and values fell in 2022. The portfolio, however, continues to outperform its benchmark over the long term.

48 Treasurer’s report & financial review

Income

The College’s main sources of income are membership fees, subscriptions to network review and grants from or contracts with other organisations, in particular the NHS.

Incoming resources 2022: £22,755k

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Other
3%
Standard setting
and research
29%
Education and
training
Member services 38%
and support
30%
----- End of picture text -----

Donations, gifts and bequests

College fundraising activities are overseen by the Business Development Office. £26k has been donated to the College in 2022 (2021: £93k) by The Gatsby Charitable Foundation and Wellcome Trust and £20k by Basil Samuel Charitable Trust.

Standard Setting and Research

College Centre for Quality Improvement (CCQI)

CCQI aims to raise the standard of care that people with mental health needs receive by helping providers, users and commissioners of services to assess and increase the quality of the care they provide. CCQI works with more than 90% of mental

health service providers in the UK and focuses on four key areas: quality networks, accreditation, national clinical audits, and research and evaluation. CCQI subscriptions to network reviews have generated £4,379k income in 2022 (2021: £4,166k). A new quality network for Alcohol Care Teams in England launched in 2021, where NHS England will provide a funding of £120k over 3 years. It is now open to all teams in the UK. CCQI received £741k funding towards two national clinical audits commissioned by Healthcare Quality Improvement Partnership on behalf of NHS England. The National Clinical Audit of Psychosis - an improvement programme to increase the quality of care that NHS Mental Health Trusts in England and Health Boards in Wales provide to people with psychosis received £390k in 2022 (2021: £493k). The National Audit of Dementia – a clinical audit programme looking at the quality of care received by people with dementia in general hospitals, received £352k in 2022 (2021: £332k).

Treasurer’s report & financial review 49

NCCMH reviews evidence and co-produces guidance, standards, workforce competences and quality improvement (QI) initiatives to enable the delivery of high-quality, equitable mental health care. £225k funding from NHS England and Improvement had been received towards Mental Health Safety Improvement Programme to improve patient safety for those who use inpatient mental health and intellectual disability services, including staff who work in health care settings (2021: £433k). A new Quality Improvement in Tobacco Treatment collaborative had been established in 2022 to increase the number of patients in mental health services inpatient units receiving smoking cessation treatment. It is a two-year programme funded by NHS England, £226k received in 2022. In addition, NCCMH had been commissioned to carry out work on the quality improvement programme of work to support the implementation of the Mental Health Act, for which £186k had been received. The Advancing Mental Health Equality (AMHE) Collaborative – supporting mental health care providers to reduce mental health inequalities in their local areas - generated £340k income. MindEd, a free online portal with educational resources on children and young people’s mental health for all adults, supported by the Department of Health and Health Education England and hosted by the College, received £140k funding in 2022 (2021: £542k). From 1 July 2022 MindEd is hosted by Health Education England as agreed by the consortium of partner organisations

Education and Training

Examinations

The MRCPsych Papers A and B and CASC continued to be delivered online throughout 2022. The total income generated from examinations was £3,191k (2021: £2,978k). The net deficit from examinations (after operating expenditure and contribution to overheads) was £185k (2021: net deficit £203k), which is -5.80% (2021: -6.82%) of the income generated from examinations. The College invested a significant number of resources to digitalise examinations in a very short period of time, so that trainees could continue to progress into national recruitment. In 2022, the College had undertaken a recruitment drive for new examiners and new exam panel members,

who are critical to the delivery of the written and clinical exams and invested in their training and engagement.

The Centre for Advanced Learning and Conferences (CALC)

CALC courses, conferences and events were delivered as a mixture of online, face-to-face, live-streamed and combined online courses with eLearning during 2022 i.e. Section 12 Induction, Approved Clinician Induction, Approved Clinician Refresher, Complex PTSD and other ICD 11 trauma related disorders, Leadership and Management Fellowship Scheme, Autism CPD Update and generated a gross surplus of £586k during the year (2021: £587k). The College also provided a wide range of free webinars, including the Dean’s Grand Rounds and webinars to mark International Women’s Day, Black History Month, Pride, South Asian History Month and International Day of Persons with Disabilities. The International Congress was held in Edinburgh, with its content available to purchase on demand till the end of 2022 through the brand-new Webinar Library on the eLearning Hub. The International Congress 2023 is planned to take place in Liverpool as an in-person event. Content from the Congress will be recorded and offered for purchase ondemand after the event.

Grants

During 2022, total of £1,137k funding had been received from Health Education England towards various projects: Perinatal, Eating Disorder Credentials, Foundation Fellows, Physicians Associates, Health Inequalities, Autism, Training Retention Initiatives and CASC Masterclass to support training, recruitment and retention in psychiatry.

Faculties, Divisions, Devolved Councils and Special Interest Groups (FDSIGs) generated income of £852k during 2022 (2021: £855k). As one of the most significant areas of activity and engagement of members, they continue to receive significant financial support from membership fees and from other general funds, particularly when their ability to generate income from conferences has been limited. Publications and Journals generated a surplus from Publishing activities of £248k before College overheads (2021: £292k). The contract with Cambridge University Press has been extended to the end of 2024. The share of Evidence Based Mental Health journal was sold in 2022.

50 Treasurer’s report & financial review

Member Services and Support

Membership numbers

The income from member and associate subscription and registration fees amounted to £6,702k in 2022 (2021: £6,655k). Membership of the College has grown by 3% (2021: 3%) during the year to a total of 20,437 members (2021: 19,796).

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Total membership included 3,790 (2021: 3,622)
members from overseas, across all grades.
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Membership statistics by region

----- Start of picture text -----
England
68%
Overseas
RCPsych in 19%
Northern Ireland
2%
Unknown
1%
RCPsych in
Wales
3%
RCPsych in
The membership fee (UK member standard
Scotland rate) for 2022 was £473 and an increase of 5%
7% was agreed for 2023 at the Annual General
Meeting in June 2022, bringing the UK
member standard rate fee to £501.
----- End of picture text -----

Treasurer’s report & financial review 51

Membership fee (UK member standard rate)

The College has a policy to limit income from pharmaceutical companies to a maximum of 5% of income. Income from pharmaceutical companies was £39k in 2022 (2021: £7k). This represents 0.171% (2021: 0.035%) of income.

Expenditure

Resources expended 2022: £23,158k

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Education
Standard setting and training
and research 29%
39%
Other
2% Member services
and support
20%
Communications
and policy
12%
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52 Treasurer’s report & financial review

Expenditure

Staff costs are the main item of expenditure for the College and increased to £13,350k in 2022 (2021: £12,070k). This represents 58% of total expenditure (2021: 59%). The average number of staff increased to 366 (2021: 356). Patients and Carers are included as workers in the staff numbers, although they only work for the College for a limited number of days in the year. Staff numbers have increased as the College’s ability to deliver face to face, online and hybrid events and online exams was transformed and so activity levels grew rapidly.

Investment Policy

The College has a portfolio of listed investments with a market value of £15,175k at 31st December 2022 (2021: £16,960k). Within a broad remit that permits investment in both equities and fixed interest securities, the College operates a sustainable investment policy, which excludes investment in fossil fuel, in companies involved in armament manufacture, tobacco, gambling, alcohol and pornography and allows a limited investment in pharmaceutical companies of not more than 5% in the pharmaceuticals sector. The policy also considers how well companies perform based on environmental, social and governance factors and invest in companies that make a positive impact on at least one of the 17 UN Sustainable Development Goals. The sustainable investment policy contributed to the strong financial performance of the portfolio during the year.

Management of the College’s investments has been delegated, on a discretionary fund management basis, to Barclays Wealth Management Limited and Cazenove Capital, its investment managers.

The main form of financial risk faced by the College is that of volatility in equity and investment markets due to wider economic conditions and the attitude of investors to investment risk. The risk is minimised by ensuring a balanced and diversified investment portfolio handled by professional investment managers with authorised discretionary fund management responsibilities. The performance of College investments is regularly reviewed by the Finance Management Committee. The overall investment policy is to maximise total return through a diversified portfolio, with a view to ensuring that capital appreciation exceeds inflation over any fiveyear period by 3.5% after charges.

Treasurer’s report & financial review 53

Investment Performance

The College’s listed investments have delivered a total negative return of -10.52% (2021: +15.20%) in the 12 months to December 2022. Over the longer term, the portfolio has delivered 6.73% and 5.03% return on three- and five-year time scales respectively (2021: 14.30% three years and 8.80% five years), exceeding the target level of return. This is 1.07% and 0.80% above the CPI for the three- and five-year period.

3.8% of the investments were held in pharmaceutical companies (2021: 2%).

Reserves Policy

The College’s funds comprise unrestricted, restricted and endowment funds and totalled £34,392k at 31st December 2022 (2021: £36,563k).

The restricted and endowment funds result from grants, donations and legacies which can only be applied for a purpose specified by the donor or grantor and are not available for general purposes. The College aims to carry out the activities and projects supported by these funds in accordance with the purposes and conditions specified.

Endowment Fund

The permanent endowment fund totalled £262k (2021: £262k) at 31st December 2022. Whilst the income from this fund must be used for specific purposes and therefore is credited to restricted funds, the endowment fund balance itself is ‘capital’ and must be held indefinitely by the College. Full details of this fund can be found in note 20 to the accounts.

Restricted Funds

Included in total reserves is an amount of £2,164k (2021: £2,059k) which is restricted. Full details of these restricted funds can be found in note 21 to the accounts, together with an analysis of movements in the year.

Unrestricted Funds

The unrestricted funds of £31,966k (2021: £34,242k) represent the accumulated surpluses generated from the College’s general business activities and are funds that are available for use at the discretion of the Trustees. They comprise designated funds and general funds.

54 Treasurer’s report & financial review

Reserves Policy

Designated Funds

Funds totalling £20,745k (2021: £21,296k) have been designated, or set aside, by the Trustees for specific purposes. The purposes and an analysis of the movements on the funds are set out in note 24 to the accounts.

The Fixed Asset fund of £18,409k (2021: £18,532k) represents the net book value of the College’s intangible fixed assets, tangible fixed assets and heritage assets. These are considered essential for the College to operate effectively and therefore the funds are not available for use for other purposes in the College. The Repairs provision of £1,164k (2021: £1,200k) is also included within designated funds. It exists to finance exceptional repairs and maintenance of College buildings and the long-term objective is to maintain approximately £2,000k for major repairs and maintenance to the College’s headquarters. £64k has been spent on replacing all remaining light fixtures with LED. Digital Improvement Fund £1,119k (2021: £1,500k) established in 2021 for future replacement and investment into information systems. The fund will be used to support the College’s core IS projects including upgrading the members website, new membership database, new finance system, hybrid events AV and meeting rooms upgrade, and other core IS infrastructure. £381k has been spent on hybrid events AV and meeting rooms upgrade, improvements to membership database and members website. A Trainee fund of £46k (2021: £46k) is also included in designated funds. The Trainee fund is to be spent on trainees and the Psychiatric Trainee Committee.

General Funds

The Board of Trustees has considered the diverse income streams of the College and their risk profile, the degree of commitment to expenditure in order to meet its charitable obligations, the day-to-day working capital requirements and the risk environment that the College operates in, and it considers that free reserves (funds that are freely available for the College’s general purposes) equivalent to at least six months of unrestricted operating expenditure (approximately £10,201k (2021: £8,849k)) should be the target for the general fund. At 31st December 2022, the balance on the general fund was £11,221k (2021: £12,946k) and the equivalent of 6.6 months of unrestricted operating expenditure (2021: 8.8 months). A significant part of this decrease was due to the performance of the investment portfolio. The outlook for financial markets is uncertain and so this may reduce in 2023. The reserves will continue to be monitored regularly by the Trustee Board.

The Academic Bursaries fund was established in 2019. During 2022 £nil (2021: £nil) has been set aside from the International Congress 2021 surplus to fund trainees’ attendance at the International Congress. An outgoing transfer of £11k in 2022 transfers (2021: £11k) into restricted funds is a contribution towards the Masonic PhD Studentship.

Treasurer’s report & financial review 55

Risk Management

The Board of Trustees has responsibility for ensuring the College maintains comprehensive risk management systems and that appropriate actions are being taken to manage and mitigate risks. Throughout 2022, the Trustee Board reviewed the top-level risks – defined as risks with a residual risk score, after mitigating controls, of seven and above – on a quarterly basis, to ensure they were being effectively managed and mitigated.

The Finance Management Committee (FMC) monitors and reviews the College’s full risk register – including medium and low-level risks – on a quarterly basis. It highlights any concerns it may have around the risk portfolio, and its management, to Trustees. The Chief Executive, Senior Management Team and the College Heads review the full risk register every other month.

The controls in place, through the risk management process, are there to provide a reasonable level of assurance against risk around matters of governance efficacy, operational and financial control, external factors and compliance with laws and regulations.

The principle categories of risk identified in the 2022 risk register – based on Charity Commission good practice guidance – were:

The impact scoring (for the risks) was based on risks which could have a material impact on reputation, operations, staff morale, time, resources, statutory requirements, achievement of strategic objectives and potential financial losses. These risks were then assessed against the likelihood of their happening.

56 Treasurer’s report & financial review

Risk Management

The most significant risks and uncertainties we face as an organisation at the time of this report are:

Key risks

Reputational damage to the College from disagreements about the proposed changes to the Bye Laws and Supplemental Charter.

Mitigation

Extensive communication with members on the proposed changes, through blogs, webinars, the College website and RCPsych Insight. The College ran Member consultations on key proposals and held an EGM at a number of locations across the UK so that Members can take part.

Key risks

Aspirations of Members exceed the ability of College to support, either financially or with sufficient staff resources.

Key risks

Cyber-attack. Despite following cybersecurity best practices, the threats are always evolving.

Mitigation

The College holds Cyber Essentials Plus certification, which is renewed annually. It is also a mandatory requirement for all staff to undertake cybersecurity training.

Key risks

Potential large losses on the College’s investment portfolio.

Mitigation

The College maintains an appropriate investment policy that is in accordance with Charity Commission guidance and appropriate to the risk appetite of the College. Investment performance and policies are regularly reviewed by SMT and FMC.

Mitigation

The College has developed a Business Prioritisation Grid which is reviewed weekly at SMT and then discussed with Officers to ensure that priorities align with the College’s three-year Strategic Plan and are actioned when there are sufficient resources available.

Treasurer’s report & financial review 57

Going concern

As detailed in the Trustees’ responsibilities statement, the accounts are prepared on a going concern basis unless it is inappropriate to presume that the College will continue in operation. The College’s Trustees have approved the College-wide budgets for 2023 and reviewed forecasts for 2024 and conclude that there are no material uncertainties about the College’s ability to continue as a going concern. The College has adequate resources to continue in operational existence for at least 12 months from the date of signing the financial statements. With respect to the next reporting period, 2023, the most significant areas of uncertainty are the level of return on the investment portfolio but the Trustees are confident that, with the level of reserves and assets held by the College, that these do not represent material uncertainties about the College’s ability to continue as a going concern.

Pay and remuneration of the College’s key management personnel

Although the College Trustees control and manage the administration of the College, the day-to-day management of its activities is delegated to the Chief Executive Officer and the members of the Senior Management Team.

The Trustees set the overall strategy of the organisation at their quarterly board meetings, and the Senior Management Team implements the strategy on a day-to-day basis – with key decisions discussed and taken at the weekly Senior Management Team meeting.

All Trustees give their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses are disclosed in note 11 to the accounts.

The remuneration committee determines the pay and benefits for the Chief Executive Officer by considering benchmarks and performance.

Every two years since 2012, Korn Ferry is commissioned to carry out a benchmarking of the College’s salaries, including salaries of the Senior Management Team, where roles across all grades are compared to sector specific salary trends across key industries. The Trustees annually approve any pay increase, normally in accordance with average increases in earnings, to all members of staff during the budget process.

58 Treasurer’s report & financial review

Fundraising

The Business Development Department is responsible for fundraising, new revenue generating opportunities and for coordinating any activities of College members who voluntarily support fundraising activities on its behalf.

The Business Development Department works with individual philanthropists and with charitable trusts and foundations who support projects which are of strategic importance to the College. These projects include the RCPsych/Rosetrees Trust Clinical Research Fellow and the Gatsby/Wellcome Integrating Neuroscience project. The College also receives a number of donations from generous members, who have held their membership for over 40 years. Long-standing members are not required to pay their annual membership fees but choose to donate to help support the Core Trainees programme.

The Business Development Department is committed to abide by the Fundraising Regulators’ Codes of Practice to ensure it is compliant with the regulation. The fundraising promise was published on the College’s new website in 2018. The Royal College of Psychiatrists does not use professional fundraisers and there were no complaints about fundraising activity in 2022 (2021: nil).

Any direct marketing is undertaken by the Business Development Department to ensure that it is not intrusive or persistent and protects, in so far as it is possible, vulnerable people. Using this approach, contact is made with College members through direct marketing appeals a maximum of three times a year, usually through a written appeal. In 2022, the Business Development Department continued to develop the College’s approach to fundraising and new business development that opened up new opportunities to support the College’s work and promote its charitable mission and explored new revenue streams to promote psychiatric care and wider mental health services in the UK and across the world. In 2023, the College will continue to develop a pipeline of revenue generating activities, with a particular focus on international commercial development. Approved and authorised for issue on behalf of the Board of Trustees and signed on its behalf by:

Dr Adrian James, Chair of Trustee Board

Professor John Crichton, Treasurer

Approved by the Board of Trustees on: 28 April 2023

Treasurer’s report & financial review 59

Independent Auditor’s Report

To The Trustees Of The Royal College of Psychiatrists 31 December 2022

Opinion

Basis for opinion

We have audited the financial statements of The Royal College of Psychiatrists (the “charity”) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements:

• give a true and fair view of the state of the charity’s affairs as at 31[st] December 2022 and of the charity’s net movement in funds for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005, regulation 8 of the Charities Accounts (Scotland) Regulations 2006, the Charities Act 2011 and the charity’s Royal Charter.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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 ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

60 Independent Auditor’s Report

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report, including the President and Chief Executive’s foreword. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 and Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept by the charity; or

• the charity financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees for the financial statements

As explained more fully in the Trustees’ responsibilities statement set out on page 46 the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Independent Auditor’s Report 61

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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the charity and the environment in which it operates, we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities and Trustee Investment (Scotland) Act 2005, regulation 8 of the Charities Accounts (Scotland) Regulations 2006, Charities Act 2011, the Charity’s Royal Charter payroll tax and sales tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to income and management bias in accounting estimates. Audit procedures performed by the engagement team included:

• Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;

• Evaluating management’s controls designed to prevent and detect irregularities;

• Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and

• Challenging assumptions and judgements made by management in their critical accounting estimates.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s Trustees, as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the 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’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Haysmacintyre LLP Statutory Auditors 10 Queen Street Place London EC4R 1AG

Date 4 May 2023

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

62 Independent Auditor’s Report

Financial statements

for the year ended 31 December 2022

----- Start of picture text -----
Notes Unrestricted Funds Restricted Funds Endowment Funds Total Funds 2022 Total Funds 2021
(pages 72–92) £’000 £’000 £’000 £’000 £’000
----- End of picture text -----
Income and endowments from:
Donations and legacies
Donations andgifts
1		 10
46
–
56
98
Charitable activities:
– Standard setting and research
2		 5,161
1,467
–
6,628
6,311
– Education and training
3		 7,317
1,270
–
8,587
7,394
– Member services and support
4		 6,815
–
–
6,815
6,681
– Communications and Policy
5		 35
75
–
110
129
Investments
1		 212
–
3
215
159
Other income
– Rental income 344
–
–
344
327
Total 19,894
2,858
3
22,755
21,099
Expenditure:
6
Cost of raising funds 344
–
–
344
297
Expenditure on charitable activities:
– Standard setting and research 7,046
1,799
–
8,845
8,096
– Education and training 5,895
820
–
6,715
5,777
– Member services and support 4,547
–
–
4,547
3,938
– Communications and Policy 2,570
130
–
2,700
2,394
– Prize funds
22		 –
7
–
7
4
Total 20,402
2,756
–
23,158
20,506
(Losses) /gains on investment
16		 (1,768)
–
–
(1,768)
2,209
Gains on investmentproperty
16		 –
–
–
–
–
Net (expenditure) / income (2,276)
102
3
(2,171)
2,802
Transfer between funds –
3
(3)
–
–
Net movement in funds (2,276)
105
–
(2,171)
2,802
Reconciliation of funds
Total funds brought forward 34,242
2,059
262
36,563
33,761
Total funds carried forward 31,966
2,164
262
34,392
36,563

All of the College’s activities above are in respect of continuing operations.

The College has no recognised gains and losses other than those shown above and therefore no separate statement of total recognised gains and losses has been presented.

Financial statements 63

Balance sheet as at 31 December 2022

Notes
(pages 72–92)		 2021
£’000
2022
£’000
Fixed assets
13
Intangible assets		 276
306
Tangible assets
14		 17,803
17,896
Heritage assets
15		 330
330
Investments
16		 15,863
17,560
34,272
36,092
Current assets
Stocks 16
14
Debtors
17		 3,553
2,705
Cash at bank and in hand 3,818
4,869
7,387
7,588
Creditors:amounts fallingdue within oneyear
18		 6,044
6,196
Net current assets 1,343
1,392
Total assets less current liabilities 35,615
37,484
Creditors:amounts fallingdue after more than oneyear
19		 1,223
921
Total net assets 34,392
36,563
Represented by:
Fund and reserves
– Endowment fund
20		 262
262
Income funds
– Restricted funds
21		 2,164
2,059
– Unrestricted funds
– Designated funds
23		 20,745
21,296
– General funds
23		 11,221
12,946
Total unrestricted funds 31,966
34,242
Total charity funds 34,392
36,563

The financial statements on pages 63 to 92 were approved and authorised for issue on behalf of the Board of Trustees and signed on its behalf by:

Dr Adrian James, President

Professor John Crichton, Treasurer

Approved on: 28 April 2023

64 Financial statements

for the year ended 31 December 2022

Notes
(pages 65–66)		 2021
£’000
2022
£’000
Cash fows from operating activities:
A
Net cash (used in)/provided by operating activities		 (1,045)
1,239
Cash fows from investing activities:
Dividends, interest and rents from investments 208
153
Proceeds from the sale ofproperty,plant and equipment 3
10
Purchase of tangible fxed assets (6)
(776)
Purchase of intangible fxed assets (120)
(291)
Proceeds from the sale of investments 3,040
8,892
Purchase of investments (2,434)
(8,814)
Net cash provided/(used in) by investing activities 691
(826)
Cash fows from fnancing activities:
Capital element of fnance lease rental payments (26)
(25)
Net cash used in fnancing activities (26)
(25)
Changes in cash and cash equivalents in theyear (380)
388
Cash and cash equivalents at the beginning of theyear 5,655
5,267
Cash and cash equivalents at the end of the year
B		 5,275
5,655

Financial statements 65

for the year ended 31 December 2022

for the year to 31 December 2022

A

2021
£’000
2022
£’000
Net income/(expenditure) for theyear asper the statement of fnancial activities 2,171
2,802
Adjustments for:
Depreciation and amortisation charge 312
498
Losses/(gains) on investments 1,768
(2,209)
Dividends, interest and rents from investments (208)
(154)
Loss on the sale of fxed assets 7
12
(Increase)/decrease in stocks (2)
5
(Increase)/decrease in debtors (848)
80
Increase in creditors (excluding fnance leases) 97
205
Net cash provided by operating activities (1,045)
1,239

B Analysis of cash and cash equivalents

BAnalysis of cash and cash equivalents
2021
£’000
2022
£’000
Cash in hand 3,818
4,869
Cash held byinvestment managers 1,457
786
Total cash and cash equivalents 5,275
5,655

C Analysis of changes in net debt

Cash fows
£’000
Non cash changes
£’000
At 1 January
2022 £’000
At 31 December
2022 £’000
Cash 5,655
(380)
–
5,275
Total cash and cash equivalents (380)
–
5,275
5,655
Finance lease obligations (64)
24
(77)
(117)
Total 5,591
(356)
(77)
5,158

66 Financial statements

Principal accounting policies

Basis of accounting

The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition effective 1 January 2019) and the Charities Act 2011 and UK Generally Accepted Practice. The accounts (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’.

The College meets the definition of a public benefit entity under FRS 102. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments and of the College’s heritage assets.

The financial statements presentation and functional currency of the College is sterling and are rounded to the nearest thousand.

Income

Incoming resources are recognised in the period in which the entitlement to the receipt is probable and the amount can be measured with reasonable accuracy. Income is deferred only when the College has to fulfil conditions before becoming entitled to it. Membership income is included in the statement of financial activities and comprises of membership registrations and subscriptions fees. It is recognised in the accounting period to which the services covered by those fees relates. Fees received in advance are accounted as deferred income within creditors.

Grants from government and other agencies have been included as incoming resources from charitable activities when receivable and are deferred where the donor specifies that the grant must be used in a future accounting period. Contract income from government and other agencies have been included as incoming resources from charitable activities when receivable and are accrued / deferred in accordance with the terms of the contract.

Going concern

As detailed in the Trustees’ responsibilities statement, the accounts are prepared on a going concern basis unless it is inappropriate to presume that the College will continue in operation. The College’s Trustees have approved the Collegewide budgets for 2023 and reviewed forecasts for 2024 and conclude that there are no material uncertainties about the College’s ability to continue as a going concern. The College has adequate resources to continue in operational existence for at least 12 months from the date of signing the financial statements. With respect to the next reporting period, 2023, the most significant areas of uncertainty are the level of return on the investment portfolio but the Trustees are confident that, with the level of reserves and assets held by the College, that these do not represent material uncertainties about the College’s ability to continue as a going concern.

Financial statements 67

Principal accounting policies

Expenditure and the basis of apportioning costs

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is more likely than not that a transfer of economic benefit will be required in settlement and the amount of the obligation can be measured or estimated reliably. Irrecoverable VAT is charged as a cost against financial services.

Resources expended comprise the following:

• The cost of generating funds represents fees paid to investment managers in connection with the management of the College’s listed investments as well as staff cost incurred in connection with managing the College’s liquid assets and those costs associated to the Business Development Office.

• The costs of charitable activities comprise expenditure on the defined charitable purposes of the College and include direct staff costs attributable to the activity and an allocation of the general management and overhead costs.

• Human Resources costs have been allocated on the basis of headcount

• Information Technology costs have been allocated on the basis of the number of computers used by each department

• Office services, Facilities and Building costs have been allocated on the basis of the square footage, and

• Financial services costs, Depreciation and Irrecoverable VAT have been allocated on the basis of the direct cost.

Termination payments

In cases of resignation or dismissal, fixed remuneration (base salary and employer pension contributions) will cease on the last day of employment. In the case of redundancy, redundancy payments will be made in accordance with statutory requirements. Depending on the circumstances, the College may waive its right to insist on staff working their notice and instead give a payment in lieu of notice. Termination payments are recognised in the statement of financial activities at the point of communication to staff.

Intangible fixed assets

All intangible assets with an expected useful life exceeding one year are recognised at cost and amortised over the asset’s useful life.

It is College policy to measure intangible assets using the cost model. The College measures intangible assets at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation costs are charged to financial services and are allocated as overheads to the cost of raising funds, standard setting and research, education and training, membership services and support and to communication and policy.

Intangible fixed assets consist of the following College IT systems:

During 2019 the Trustees agreed to change the policy for the amortisation rate from 10% to 16.66% for the membership database reducing its useful economic life from 10 years to 6 years. There has been an increase in the demand for data analysis and obtaining meaningful data from NG is a complex and resource intense process. For this reason, the Trustees believe that NG may need replacing sooner than expected. The financial impact due to the change in policy in 2022 is an additional amortisation of £nil (2021: £80k) recognised in the SOFA.

68 Financial statements

Principal accounting policies

Tangible fixed assets

All tangible assets in excess of £2,500 and with an expected useful life exceeding one year are capitalised.

Functional land and buildings used for the direct charitable work of the College are shown in the balance sheet at historical cost. The College flat is held on a lease; the net book value is being amortised over the remaining period of the lease. Depreciation on equipment, furniture and fittings is provided at the following annual rates in order to write off each asset on a straight-line basis over its estimated useful life:

Freehold land and buildings are not depreciated as the College has a policy of maintaining them in such a condition that their value is not impaired by the passage of time and that their residual value is deemed greater than carrying value. The Board of Trustees is of the opinion that any provision for depreciation is deemed to be immaterial because of the long useful economic life.

Leasehold buildings comprise the College flat located in Aldgate and is depreciated on cost over the remaining period of the lease. The College flat is intended for the use of Trustees and is not considered to be an investment property. Investment property comprises the College leasehold flat located in Pimlico, which is no longer in use by College Trustees, is being let on a short-term basis. It is initially recognised at cost and subsequently measured at fair value with gains and losses recognised in the Statement of

Financial Activities. At the end of each reporting period the Board of Trustees are to review the investment property fair value.

It is College policy to capitalise finance costs incurred in connection with the construction of an asset up until the point at which the related asset comes into use.

It is College policy to undertake an annual impairment review of all tangible fixed assets, including heritage assets where no depreciation charge is made on the grounds that it is immaterial (such as the Portraits and the collection of antiquarian books), or where depreciation is calculated on a basis that assumes that the useful economic life of an asset is longer than 50 years (such as the College headquarters at 21 Prescot Street and the College flat), to ensure that the carrying amount of the asset is not overstated. The College portraits, held as part of heritage assets, are not depreciated as they have a very long useful economic life before they need any major restoration or refit. The remaining economic value of the assets are not materially different from the carrying amount of the portraits, as a result the depreciation charge is immaterial.

The College heritage assets (excluding College portraits) were revalued on 22 January 2016 by Bonhams, specialist valuers and auctioneers in a wide range of antiquarian and rare books. These assets have been recognised in the Balance Sheet at market value. Due to the nature of the heritage assets they are not depreciated and the College Trustees are of the opinion that any provision for depreciation would not be material and that the heritage assets are worth at least their book value.

Financial statements 69

Principal accounting policies

Fixed asset investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year based on brought forward values.

Cash and cash equivalents

Cash at bank and in hand includes interest and non-interest bearing accounts held at call with recognised United Kingdom banks, and cash in hand. Cash equivalents includes monies deposited with a maturity of less than one year but more than three months held for investment purposes rather than to meet short-term cash commitments as they fall due.

Financial assets

Trade and other debtors

Trade and other debtors (including accrued income) which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. The College has no debtors that would constitute a financing transaction.

A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in the Statement of Financial Activities for the excess of the carrying value of the trade debtor. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in the Statement of Financial Activities.

Financial liabilities

Financial instruments are classified as liabilities and equity instruments according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Trade creditors and other creditors

Trade and other creditors (including accruals) payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being transaction price less any amounts settled. The College has no creditors that would constitute a financing transaction.

Fund accounting

Endowment funds comprise monies which must be held indefinitely as capital. Income therefrom is credited to general funds and applied for general purposes, unless under the terms of the endowment such income must be used for specific purposes, in which case it is credited to restricted funds.

The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donor-imposed conditions. The designated funds are monies set aside out of general funds and designated for specific purposes by the Members of the Board of Trustees. The Board of Trustees has the power to reallocate such funds within unrestricted funds unless and until expended.

The general fund comprises those monies which are freely available for application towards meeting the charitable objectives of the College at the discretion of the Board of Trustees.

70 Financial statements

Principal accounting policies

Operating leases

Rentals applicable to operating leases, where substantially all of the benefits and risks of ownership remain with the lessor, are charged to the statement of financial activities on a straight line basis over the lease term.

Finance leases

Rentals applicable to finance leases, where substantially all of the benefits and risks of ownership rest on the lessee, are capitalised at the guaranteed minimum lease payments where any interest is not material to the financial statements. Assets subject to finance leases are depreciated over their terms.

The commitments of the minimum lease payments are recognised as creditors in the balance sheet.

Pension costs

College staff are entitled to join a defined contribution ‘money purchase scheme’. Contributions in respect of the College’s money purchase scheme are charged to the statement of financial activities in the year in which they are payable to the scheme.

The costs of the money purchase scheme are included within support and governance costs and charged to the unrestricted funds of the College using the methodology set out in the basis of overheads allocation.

Pension contributions unpaid at 31st December are included in other creditors.

The money purchase scheme is managed by Standard Life Assurance Limited and the plan invests the contributions made by staff and the College in an investment fund to build up over the term of the plan. The pension fund is then converted into a pension upon the staff’s normal retirement age which is defined as when they are eligible for a state pension. The College has

no liability beyond making its contributions and paying across the deductions for staff contributions.

New staff are automatically enrolled into the money purchase scheme unless they have exercised their right to opt out.

Accounting estimates and key judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. During the year there are no accounting estimates or assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Freehold land - the total value of the land is estimated at £200k and is included in freehold buildings.

Freehold buildings – the College’s freehold buildings are not depreciated as the College has a policy of maintaining them in such a condition that their value is not impaired by the passage of time and that their residual value is deemed greater than carrying value. If the College’s freehold buildings were depreciated the charge for the year would have been £331k.

Heritage assets – have been recognised in the Balance Sheet at market value. Market valuation is sought where significant changes have been made to the collection. Due to the nature of the heritage assets they are not depreciated and the College Trustees are of the opinion that any provision for depreciation would not be material and that the heritage assets are worth at least their book value.

The investment property has been recognised in the Balance Sheet at market value of £688k. The property had been valued based on the valuation survey carried by Winkworth – Sales, Lettings and Management Agents in January 2023 and reviewed annually by the College Trustees taking into consideration the current property market prices for similar properties in the same area.

Financial statements 71

Notes to the accounts

1 Donations and investment income

Unrestricted
£’000
Restricted
£’000
Endowment
£’000
2021
£’000
2022
£’000
Income
Dividends 167
–
3
170
141
Bank interest 22
–
–
22
–
Investmentpropertyincome 23
–
–
23
18
Donations and gifts 10
46
–
56
98
2022 222
46
3
271
2021 161
93
3
257

2 Standard setting and research

2 Standard setting and research
Unrestricted
£’000
Restricted
£’000
2021
£’000
2022
£’000
Income
Specialist registration (Article 14 assessment) 24
–
24
29
Grants receivable (note 8) 624
1,467
2,091
2,069
Contract income from supplyof services –
–
–
25
CCQI Subscription to network review 4,402
–
4,402
4,166
Miscellaneous income 111
–
111
22
2022 5,161
1,467
6,628
2021 4,426
1,885
6,311

72 Financial statements

Notes to the accounts

3 Education and training

3 Education and training
Unrestricted
£’000
Restricted
£’000
2021
£’000
2022
£’000
425
45
470
390
892
–
892
879
5
1,225
1,230
724
1,182
–
1,182
935
852
–
852
854
3,191
–
3,191
2,978
770
–
770
634
Income
Examinations
Online continuing professional development
Centre for Advanced Learningand Conferences
Grants for education and training (note 8)
International Congress
Faculties, Divisions, Devolved Councils and
Special Interest Groups’ meetings
Publications and journals
2022 7,317
1,270
8,587
2021 6,560
834
7,394

4 Member services and support

4 Member services and support
Unrestricted
£’000
Restricted
£’000
2021
£’000
2022
£’000
Income
Members’ and Associates’ subscription and registration fees 6,701
–
6,701
6,655
Miscellaneous income 114
–
114
26
2022 6,815
–
6,815
2021 6,681
–
6,681

5 Communications and policy

5 Communications and policy
Unrestricted
£’000
Restricted
£’000
2021
£’000
2022
£’000
Income
Sales ofpublic education material 13
–
13
6
Grants (note 8) –
75
75
88
Miscellaneous income 22
–
22
21
2022 35
75
110
2021 27
88
115

Financial statements Financial statements 7349

Notes to the accounts

6 Analysis of expenditure (current year)

Standard setting
& research
£’000
Education
& training
£’000
Member services
& support
£’000
Communications
& policy
£’000
2022
£’000
Prize
funds
£’000
Cost of raising
funds
£’000
Charitable activities
Staf costs 2,012
2,567
1,544
–
11,095
4,814
158
Grant fundingof activities 404
–
88
–
956
464
–
Other direct costs 3,105
732
348
7
5,144
847
105
Support services costs (note 7 )
1,194
1,248
720
–
5,963
2,720
81
Total expenditure 2022 4,547
2,700
7
23,158
8,845
6,715
344

Analysis of expenditure (prior year)

----- Start of picture text -----
Charitable activities
Cost of raising funds£’000 Standard setting & research£’000 Education & training£’000 Member services & support£’000 Communications & policy£’000 funds£’000Prize £’0002021
Staff costs 97 4,103 2,006 2,260 1,432 – 9,898
Grant funding of activities – 620 439 – 56 – 1,115
Other direct costs 115 692 2,136 485 191 4 3,623
Support services costs (note 7) 85 2,681 1,196 1,193 715 – 5,870
Total expenditure 2021 297 8,096 5,777 3,938 2,394 4 20,506
----- End of picture text -----

Total expenditure include:

Total expenditure include:
2021
£’000
2022
£’000
Auditor’s remuneration
Audit 24
23

74 Financial statements

Notes to the accounts

7 Allocation of support services costs

----- Start of picture text -----
Information Financial Human
Governance Technology Facilities Services Resources 2022 2021
£’000 £’000 £’000 £’000 £’000 £’000 £’000
----- End of picture text -----
Activities
Raisingfunds 19
17
19
81
85
22
4
Standard settingand research 644
559
629
2,720
2,681
751
137
Education and training 282
245
276
1,194
1,196
330
61
Members services and support
256
289
1,248
1,193
344
296
63
Communications and policy 170
148
167
720
715
199
36
2022 1,411
1,225
1,380
5,963
1,646
301
2021 1,226
1,002
5,870
1,631
1,717
294

The methods and principles for allocation and apportionment of costs are included in the accounting policies on page 68.

Governance
£’000
Information
Technology£’000
Facilities
£’000
Financial Services
£’000
Total
£’000
Human Resources
£’000
2022 711
419
368
616
2,255
141
2021 799
309
346
578
2,172
137

Financi al statements al statements 4975

Notes to the accounts

8 Grants receivable

8 Grants receivable
Unrestricted
£’000
Restricted
£’000
2021
£’000
2022
£’000
Standard setting and research
– HQIP* –
742
742
771
– NHS England* 253
331
584
139
– Health Education England* 100
127
227
562
– NHS Trust Development Authority –
225
225
449
– Scottish Government* 100
–
100
–
– NHS Race and Health Observatory 83
–
83
17
– SHRINE 30
–
30
–
– Tavistock and Portman NHS Foundation Trust* _
29
29
22
– NHS Wales* 25
–
25
–
– Camden & Islington NHS Foundation Trust* 23
–
23
23
– Education Support Partnership –
13
13
–
– Southampton University –
–
–
35
– Multiple Sclerosis Centre of Catalonia –
–
–
21
–
–
–
30
– NHS Applied Research
– Other 10
–
10
–
624
1,467
2,091
2,069
Education and training –
1,137
1,137
658
– Health Education England*
– General Medical Council –
68
68
45
– NHS Scotland* –
20
20
–
– Home Ofce 5
–
5
–
– Queen MaryUniversityof London –
–
–
21
5
1,225
1,230
724
Communications and policy
– Health Education England* –
75
75
75
– Alzheimer’s Research UK –
–
–
2
–
75
75
77
2022 629
2,767
3,396
2021 184
2,686
2,870

*Grants receivable from Government bodies

9 Related party transactions

There were no related party transactions in 2022 or in 2021. Key management personnel (KMP) and Trustees expenses remuneration is disclosed in notes 10 and 11 respectively.

76 Financial statements

Notes to the accounts

10 Staff remuneration

10Staff remuneration
Total 2022
£’000
Total 2021
£’000
Staf costs duringtheyear were as follows:
Wages and salaries 10,147
9,185
Social securitycosts 1,142
970
Pension costs 644
588
11,933
10,743
Non-payroll and temporary/agencystaf 1,417
1,327
13,350
12,070

The number of staff who earned in excess of £60,000 per annum (including taxable benefits but excluding employer pension contributions) during the year was as follows:

2022
2021
£60,001 — £70,000 10
11
£70,001 — £80,000 8
2
£80,001 — £90,000 1
1
£90,001 — £100,000 2
3
£100,001 — £110,000 2
2
£110,001 — £120,000 1
–
£120,001 — £130,000 –
1
£140,001 — £150,000 1
–
£160,001 — £170,000 1
1

Employer contributions are made to money purchase pension schemes in respect of all 26 (2021: 21) staff who earned £60,000 or more during the year (as defined above). During the year this amounted to £172,920 (2021: £136,954).

The average number of staff during the year, regardless of their work pattern is analysed as follows:

2022
2021
In furtherance of the College’s charitable activities 328
313
In supportingthe College’s activities andgovernance 39
43
366
356

Financial statements 77

Notes to the accounts

Although the College Trustees control and manage the administration of the College, the day-to-day management of its activities is delegated to the Chief Executive Officer and the Senior Management Team. The total employment benefits of the key management personnel were £970k (2021: £940k) including employer pension contributions and National Insurance Contributions.

The College has a non-cash staff recognition award programme. The awards are open to individuals. A number of awards have been made to recognise the outstanding achievement or contribution of staff. During the year, £15k (2021: £23k) was spent on staff awards and the staff social club. During the year statutory redundancy payments totalled £10k (2021: £4k) and no termination payments were made (2021: £nil) during the year. Statutory redundancy payments were fully paid in the year with no amounts outstanding as at 31st December 2022.

11 Remuneration and reimbursement to College Trustees

The College has adequate systems in place to manage expenses. Reimbursement of expenses does not form part of the remuneration.

No member of the Board of Trustees received remuneration in respect of their services as a member of the Board of Trustees during the year (2021: £nil). The College President had received a benefit in kind of £7k (2021: £6k) for the provision of a flat in Aldgate, near the College headquarters.

None of the Trustees (2021: £nil) received remuneration in respect of their services provided as an examiner, editor or other capacities during the year. None of the Trustees (2021: nil) were reimbursed for travel expenses (2021: £nil) for attendance at Board of Trustees meeting during the year. Travel expenses of £63,122 (2021: £33,814) were reimbursed to eight (2021: four) Trustees for other duties. Other duties include College Trustees representing the College at the American Psychiatric Association Annual Meeting, Royal Australian and New Zealand College of Psychiatrists (RANZCP) Congress, World Congress of Psychiatry, Annual National Conference of Indian Psychiatric Society (ANCIPS) and other College conferences and College meetings.

No member of the Board of Trustees had any beneficial interest in any contract with the College during the year (2021: £nil).

12 Taxation

The College is a registered charity and therefore is exempt from income tax and corporation tax on income arising from its charitable activities. The College is registered for VAT but is not able to recover all VAT suffered on expenditure due to partial exemption rules.

78 Financial statements

Notes to the accounts

13

CRM
£’000
Website
£’000
Other software
£’000
eLearning platform
£’000		 Total
£’000
Cost or valuation
615
262
90
At 1 January2022
278		 1,245
Additions
12
–
106
2		 120
At 31 December 2022
627
262
196
280		 1,365
Amortisation
At 1 January 2022
615
186
82
56		 939
Charge foryear
12
52
30
56		 150
At 31 December 2022
627
238
112
112		 1,089
Net book value
At 31 December 2022
–
24
84
168		 276
At 31 December 2021
–
76
8
222		 306

14

Freehold land and
buildings Cost
£’000
Leasehold land and
buildings Cost
£’000
Equipment,
furniture and
fttings Cost £’000
Computers
and IT Cost
£’000		 Total
£’000
Cost or valuation
16,816
503
1,356
647
At 1 January2022		 19,322
Additions
–
–
137
–		 137
Disposals
–
–
(170)
(297)		 (467)
At 31 December 2022
503
1,323
350
16,816		 18,992
Depreciation
At 1 January 2022
–
16
817
593		 1,426
Charge foryear
–
4
125
33		 162
Disposals
–
–
(102)
(297)		 (399)
–
20
840
329
At 31 December 2022		 1,189
Net book value
At 31 December 2022
16,816
483
483
21		 17,803
At 31 December 2021
16,816
487
639
54		 17,896

Financial statements 79

Notes to the accounts

Included within the freehold land and buildings balance is £2,260k (2021: £2,260k) in relation to the 4th Floor of the College’s headquarters and is classed as an investment property which is used for short term lets to organisations not working to fulfil the College’s objectives. Freehold land and buildings are not depreciated as the College has a policy of maintaining them in such a condition that their value is not impaired by the passage of time. The net book value of equipment, furniture and fittings included £114k (2021: £56k) in respect of assets held under finance leases. The amount of depreciation charged for the year in respect of such assets amounted to £18k (2021: £27k) and the finance charges amounted to £7k (2021: £6k). The net book value of leasehold land and buildings represents the College flat in Aldgate, which is available for College Trustees to use. Assets acquired using restricted funds are expensed in the statement of financial activities in the year of purchase.

15 Heritage assets

The College owns a collection of antiquarian books, some of which date back to the fifteenth century. Most of the books were donated to the Medico-Psychological Association and the Royal Medico-Psychological Association, predecessor bodies of the College, from 1895. The donations were in the form of gifts and bequests towards the development of the Associations’ library. The donations came from the libraries of doctors Daniel Hack Tuke, J Lord, C Lockhart Robertson and J Whitwell. Since 2013, the College has also received donations of antiquarian books from the families of the late Professor Neil Kessel, valued at £6k, Dr Henry Rollin, a past Honorary Librarian. This donation consisting of books and personal papers is yet to be valued.

The College owns a collection of antiquarian books, some of which date back to the fifteenth century. Most of the books were donated to the Medico-Psychological Association and the Royal Medico-Psychological Association, predecessor bodies of the College, from 1895. The donations were in the form of gifts and bequests towards the development of the Associations’ library. The donations came from the libraries of doctors Daniel Hack Tuke, J Lord,

C Lockhart Robertson and J Whitwell. Since 2013, the College has also received donations of antiquarian books from the families of the late Professor Neil Kessel, valued at £6k, and Dr Henry Rollin, a past Honorary Librarian. This donation consisting of books and personal papers is yet to be valued.

The collection contains English, French and German language books written by notable authors such as John Charles Bucknill, Henry Maudsley, John Conolly, Sigmund Freud, Emil Kraepelin and Charles Darwin. The collection also contains eighteenth century MD (Doctor of Medicine) dissertations in Latin submitted to various European Universities.

The collection is an important source of information on the history of psychiatry, psychology, mental illness and intellectual disability.

In 2002 the College received the Wellcome Trust’s Research Resources in Medical History Award to restore and conserve part of the collection. The remainder of the collection which requires restoration, is now being conserved by the College’s adopt-a-book scheme. Over 100 books have now been restored since the establishment of the scheme in 2007. Over 60 books have also been restored using College funds.

All the books excluding the dissertations have been catalogued using the Soutron Library Management System. The catalogue is reviewed, updated and maintained by the Library staff, whilst the preservation and conservation of the collection is the responsibility of the Archivist. The catalogue can be searched online via the College website and COPAC (Consortium of Online Public Access Catalogues).

The College also has an archives collection with records dating back to 1841. The archives comprise institutional records, deposited archives and manuscripts, and mental nursing examination papers. The collection is being catalogued using Axiell Collections Management System.

The College has an Archives Collections Development Policy. The primary aim of the policy is to collect, maintain, document, preserve and conserve the corporate history and heritage of the College.

The archives and books are held in appropriate environmentally controlled conditions on the premises and access to these collections is governed by the College’s Archives Access Policy.

80 Financial statements

Notes to the accounts

Analysis of heritage assets

2022
£’000		 2021
£’000		 2020
£’000		 2019
£’000		 2018
£’000
330
Carryingamount at 1 January		 215 215 215 215
Additions
–		 4 – – –
Revaluation
–		 – – – –
Transfer
–		 111 – – –
Carryingamount at 31 December
330		 330 215 215 215

The net transfer of £nil (2021: £111k) relates to reclassification of College portraits (including College’s past presidents and chief executive) as a heritage asset previously classified as a tangible fixed asset (held within equipment, furniture and fittings).

There has been no movement in the year to the collection of books.

16 Investments

Listed
investments		 Investment
property		 2022
£’000		 2021
£’000
Investments
Fair value at 1 January 16,174 600 16,774 14,643
Additions at cost 2,434 – 2,434 8,814
Disposal proceeds (3,040) – (3,040) (8,892)
Net realised investment (loss)/gains (217) – (217) 771
Net unrealised investment (loss)/gains (1,633) 88 (1,545) 1,438
Fair value at 31 December 13,718 688 14,406 16,774
Cash held byinvestment managers in UK for reinvestment 1,457 – 1,457 786
15,175 688 15,863 17,560
Cost of investments at 31 December 13,031 205 13,625 13,830

Financial statements 81

Notes to the accounts

Investments

Investments held at 31 December 2022 comprised the following:

2022
£’000		 2021
£’000
Fixed Interest Bonds
– United Kingdom
144		 169
– Overseas
1,472		 1,252
Equities
– United Kingdom
425		 467
9,775
– Overseas		 12,598
Property
305		 233
Alternatives & other investments
1,597		 1,455
Cash held for reinvestment
1,457		 786
15,175 16,960
Investment property
688		 600
15,863 17,560

Investment property comprises a leasehold flat let on a short-term basis. This represents the net transfer of the leasehold flat in Pimlico from the leasehold land and buildings (tangible fixed assets) to investment property made during 2018.

It is measured at fair value with gains and losses recognised in profit and loss at the end of the reporting period. There are no restrictions on the ability to realise investment property and on the remittance of income or proceeds of the investment property disposal. There are no contractual obligations for the purchase, construction or development of the investment property or for repairs, maintenance or enhancements. The College’s investment property has been valued by Winkworth – Sales, Lettings and Management Agents in January 2023 and further reviewed and confirmed by the College Trustees, taking into account the current housing market prices for similar properties in the same area at the year-end 2022.

82 Financial statements

Notes to the accounts

17 Debtors

2022
£’000		 2021
£’000
Trade debtors 1,926 1,729
Prepayments 520 496
Accrued income 1,101 417
Other debtors 6 63
3,553 2,705

18 Creditors: amounts falling due within one year

2022
£’000		 2021
£’000
Expense creditors 1,012 1,097
Deferred income 3,334 3,396
Other creditors 257 244
Accruals 953 1,163
Obligations under fnance leases 23 27
Other tax and social security 465 269
6,044 6,196

Financial statements 83

Notes to the accounts

Movement in deferred income

Movement in deferred income
Realised to
SOFA
£’000
Deferred
in year
£’000
Balance b/f
1 January 2022
£’000
Balance c/f
31 December
2022 £’000
Membership subscriptions received in advance 250
(250)
280
280
Examination fees received in advance 530
(530)
557
557
Journal subscription received in advance (84)
71
71
84
Grants received in advance 375
(375)
73
73
CCQI subscription to network review in advance 1,931
(1,931)
2,082
2,082
Training income received in advance 203
(203)
271
271
Cambridge UniversityPress transition income 23
(23)
–
–
Total 3,396
(3,396)
3,334
3,334
Amounts to be released in more than 1year (note 19)
CCQI subscription to network review in advance 884
(585)
830
1,129
Total 4,280
(3,981)
4,164
4,463

Movement in deferred income

Realised to
SOFA
£’000
Deferred in
year
£’000
Balance b/f
1 January 2021
£’000
Balance c/f
31 December
2021 £’000
Membership subscriptions received in advance 276
(276)
250
250
Examination fees received in advance 388
(388)
530
530
Journal subscription received in advance (47)
84
84
47
Grants received in advance 449
(449)
375
375
CCQI subscription to network review in advance 1,804
(113)
1,931
1,931
Training income received in advance 113
(140)
203
203
Cambridge UniversityPress transition income 23
(23)
23
23
Total 3,100
(3,100)
3,396
3,396
Amounts to be released in more than 1year (note 19)
CCQI subscription to network review in advance 708
(576)
752
884
Cambridge UniversityPress transition income 22
(22)
–
–
Total 3,830
(3,698)
4,148
4,280

Deferred income relates to income received in advance to which the College is not entitled until future years.

84 Financial statements

Notes to the accounts

19 Creditors: amounts falling due after more than one year

19 Creditors: amounts falling due after more than one year
2022
£’000
2021
£’000
CCQI subscription to network review in advance
– twoyears 882
690
– two to fveyears 247
194
1,129
884
Obligations under fnance leases
– twoyears 23
37
– two to fve years 71
–
94
37
1,223
921

20 Endowment fund

At 1 January Incoming Transfers At 31 December
£’000 resources £’000 £’000 £’000
MaryMargaret Slack 262 3 (3) 262
2022 262 3 (3) 262
2021 262 3 (3) 262

The interest from this fund is applied towards a travelling fellowship to enable a psychiatric trainee working in the UK to attend a centre of excellence in the UK or abroad.

Financial statements 85

Notes to the accounts

21 Restricted funds

The income funds of the College include restricted funds comprising the following unexpended balances of donations and grants held on trust to be applied for specific purposes:

At 1 January 2022
£’000
Incoming
resources £’000
Resources
expended £’000
Transfers
£’000
At 31 December
2022 £’000
Member and trainee services 716
1,195
(744)
33
1,200
Donations received for specifcpurposes 646
46
–
(33)
659
Other funds for specifc purposes (note 22) 55
–
(7)
3
51
Total Member and trainee Services 1,417
1,241
(751)
3
1,910
Restricted research funds 444
1,467
(1,800)
–
111
Otherprojects 198
75
(130)
–
143
2022 2,059
2,783
(2,681)
3
2,164
At 1 January 2021
£’000
Incoming
resources £’000
Resources
expended £’000
Transfers
£’000
At 31 December
2021 £’000
Member and trainee services 655
834
(789)
16
716
Donations received for specifcpurposes 609
93
–
(56)
646
Other funds for specifc purposes (note 22) 56
–
(4)
3
55
Total Member and trainee Services 1,320
927
(793)
(37)
1,417
Restricted research funds 489
1,855
(1,930)
(37)
444
Otherprojects 206
77
(85)
–
198
2021 2,015
2,889
(2,808)
(37)
2,059

86 Financial statements

Notes to the accounts

Member and trainee services

The fund will be applied towards the training and education of psychiatrists and trainees world-wide.

During 2022, the College received £1,147k from Health Education England towards various projects: Perinatal, Eating Disorder Credentials, Foundation Fellows, Health inequalities, Physicians Associates, Autism and Training Retention Initiatives to support training, recruitment and retention in psychiatry. In addition, £68k has been received from General Medical Council to deliver CASC Masterclasses and £20k from NHS Scotland towards the recruitment campaign.

purposes

Restricted research funds

The funds represent external funding to be used for the College’s research activities.

Transfers

A transfer of £33k (2021: £56k) from donations received for specific purposes into member and trainee services represents expenditure incurred in relation to Neuroscience, in accordance with restrictions in donations. The transfer of £3k from other funds for specific purposes represents the return on the endowment fund.

Other projects

This represents the following projects:

During 2022, the College received £26k from Gatsby/Wellcome towards the Integrating Neuroscience Project which ensures that advances in basic and clinical neuroscience are made more accessible to trainee psychiatrists. In addition, £20k was received from Basil Samuel Charitable Trust towards the Psychiatry Development programme.

This is represented by the individual balances of funds set up to accommodate donations and bequests and to be applied for prizes and other specific purposes. The transfer made into the fund represents the interest generated £3k (2021: £3k) from the endowment fund. This is applied towards a travelling fellowship to enable a psychiatric trainee working in the UK to attend a centre of excellence in the UK or abroad.

St Andrew’s

The fund exists to produce mental health information leaflets which are sold in large quantities to trusts, PCTs, GP surgeries, PALs, schools and carer organisations.

Choose Psychiatry Campaign

This is restricted funding received from the Health Education England towards the Choose Psychiatry Campaign to retain a higher proportion of core trainees in psychiatry.

Financial statements 87

Notes to the accounts

22

At 1 January 2022
£’000
Incoming
resources £’000
Resources
expended £’000
Incoming/(outgoing)
Transfers £’000
At 31 December
2022 £’000
Prize Funds 16
_
(3)
–
13
TravellingFellowships 33
–
(4)
3
32
Other Funds 6
–
–
–
6
2022 55
–
(7)
3
51
At 1 January 2021
£’000
Incoming
resources £’000
Resources
expended £’000
Incoming/(outgoing)
Transfers £’000
At 31 December
2021 £’000
Prize Funds 18
–
(2)
–
16
TravellingFellowships 32
–
(2)
3
33
Other Funds 6
–
–
–
6
2021 56
–
(4)
3
55

The transfer made into the Travelling Fellowship fund represents the interest generated £3k (2021: £3k) from the endowment fund. This is applied towards the Margaret Slack Travelling Fellowship fund to enable a psychiatric trainee working in the UK to attend a centre of excellence in the UK or abroad.

88 Financial statements

Notes to the accounts

23 Unrestricted funds

Designated funds (note 24)
General fund
2022		 Incoming
resources
£’000
Resources
expended
£’000
Incoming /
(outgoing)
Transfers £’000
Other recognised
gains and losses
£’000
At 31 December
2022
£’000
At 1 January
2022
£’000
28
–
(579)
–
20,745
21,296
19,866
(20,402)
579
(1,768)
11,221
12,946
19,894
(20,402)
–
(1,768)
31,966
34,242
Incoming
resources
£’000
Resources
expended
£’000
Incoming /
(outgoing)
Transfers £’000
Other recognised
gains and losses
£’000
At 31 December
2021
£’000
At 1 January
2021
£’000
Designated funds (note 24) 1,529
–
(294)
–
21,296
20,061
General fund 16,678
(17,698)
334
2,209
12,946
11,423
2021 18,207
(17,698)
40
2,209
34,242
31,484

The outgoing transfer made between the designated funds and the general fund represent £123k (2021: £546k) to reflect the net present value of the College’s fixed assets, £64k (2021: £829k) towards the refurbishment of 21 Prescot Street, £381k (2021: £nil) towards hybrid events AV and meeting rooms upgrade, improvements to members website and membership database, and £11k contribution from the Academic Bursaries fund towards the Masonic PhD Studentship.

Financial statements 89

Notes to the accounts

24 Designated funds

The income fund of the College includes the following designated funds which have been set aside out of unrestricted funds by the College Trustees for specific purposes:

At 1 January 2022
£’000
New designations
£’000
Transfers
£’000
At 31 December
2022 £’000
Fixed asset fund 18,532
–
(123)
18,409
Repairsprovision 1,200
28
(64)
1,164
Digital improvement fund 1,500
–
(381)
1,119
Academic bursaries 18
–
(11)
7
Trainee fund 46
–
–
46
2022 21,296
28
(579)
20,745
At 1 January 2021
£’000
New designations
£’000
Transfers
£’000
At 31 December
2021 £’000
Fixed asset fund 17,986
–
546
18,532
Repairsprovision 2,000
29
(829)
1,200
Digital improvement fund –
1,500
–
1,500
Academic bursaries 29
–
(11)
18
Trainee fund 46
–
–
46
2021 20,061
1,529
(294)
21,296

Fixed asset fund

Repairs provision

This represents the net book value of all intangible and tangible fixed assets held by the College, including heritage assets.

The fund exists to finance major repairs and maintenance of College buildings. In 2022, an outgoing transfer of £64k (2021: £829k) into the general fund for expenditure incurred on replacing all remaining light fixtures with LED. The objective of the fund is for major repairs and maintenance to the College’s headquarters including the roof, lifts and air conditioning system. Planned maintenance works for 2023 include lift refurbishment, overhaul of CCTV and access control, and other building improvement works at the College’s headquarters.

90 Financial statements

Notes to the accounts

Digital Improvement fund

Academic bursary fund

The fund, established in 2021 for future replacement and investment into information systems. The fund will be used to support the College’s core IS projects including upgrading the members website, new membership database, new finance system, hybrid events AV and meeting rooms upgrade, and other core IS infrastructure. The fund will allow for investments in upgrades and improvements to be made in a prudent and planned way. In 2022, an outgoing transfer of £381k into the general fund for expenditure incurred on hybrid events AV and meeting rooms upgrade, improvements to membership database and members website.

The Academic Bursaries fund was established in 2019. During 2021 £nil (2020: £nil) has been set aside from the International Congress 2021 surplus to fund trainees attendance at the International Congress. An outgoing transfer of £11k into restricted funds is a contribution towards the Masonic PhD Studentship.

Trainee fund

The fund, established in 2012, represents amounts set aside from the excess of examination surplus to be spent towards trainees. It applies only if examinations surplus in a year represents more than 10% of examinations income. In 2022, the excess above the agreed threshold was £nil (2021: £nil). The Trustees are yet to agree how the remaining balance of the fund is to be spent on trainees. During 2023 the Psychiatric Trainees’ Committee will be invited to make proposals on how the funds can be used to benefit trainees.

25 Analysis of net assets between funds

General fund
£’000
Designated funds
£’000
Restricted funds
£’000
Endowment funds
£’000
Total 2022
£’000
Fund Balances at 31 December 2022 are represented by:
Fixed assets –
18,409
–
–
18,409
Investments 15,601
–
–
262
15,863
Current assets 2,887
2,336
2,164
–
7,387
Creditor: amounts falling due within oneyear (6,044)
–
–
–
(6,044)
Creditor: amounts fallingdue after more than oneyear (1,223)
–
–
–
(1,223)
2022 11,221
20,745
2,164
262
34,392

Financial statements 91

Notes to the accounts

Analysis of net assets between funds

General fund
£’000
Designated funds
£’000
Restricted funds
£’000
Endowment funds
£’000
Total 2021
£’000
Fund Balances at 31 December 2021 are represented by:
Fixed assets –
18,532
–
–
18,532
Investments 17,298
–
–
262
17,560
Current assets 2,765
2,764
2,059
–
7,588
Creditor: amounts falling due within oneyear (6,196)
–
–
–
(6,196)
Creditor: amounts fallingdue after more than oneyear (921)
–
–
–
(921)
2021 12,946
21,296
2,059
262
36,563

26 Leasing commitments

Operating leases

At 31[st] December 2022 the College had total future minimum payments under non-cancellable operating leases as follows:

2021
£’000
2022
£’000
2021
£’000
2022
£’000
Land and buildings
Other
Other
Amount due:
Within oneyear 37
25
15
5
Within two to fveyears 10
27
17
9
Total commitment 47
52
33
15

27

2021
£’000
2022
£’000
Amount due:
Within oneyear 23
27
Within two to fveyears 94
37
Total commitment 117
64

Obligations under finance leases are secured on the related asset. At 31[st] December 2022 the College had net obligations under finance leases as disclosed in notes 18 and 19.

92 Financial statements

About this re ort p

This is the report of the Board of Trustees of the Royal College of Psychiatrists, including the accounts of the College, for the year ended 31 December 2022. The accounts have been prepared in accordance with the accounting policies set out on pages 61 to 71 of the attached accounts and comply with the College’s Charter, applicable laws and the requirements of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102.

College objectives and activities

In 1971, the College was established to:

As a registered charity (number 228636 with the Charity Commission for England and Wales and number SC038369 with the Office of the Scottish Charity Regulator), we have complied with the duty in section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities we undertake. This annual report sets out the details of our work in 2022 that demonstrates public benefit. The College is a registered charity incorporated by Royal Charter. The College’s affairs are managed and regulated in accordance with its Bye-Laws and Regulations.

The Trustees are satisfied that all strands of the College’s activities come under the overarching goal of improved mental health for all, and therefore work both directly and indirectly toward the benefit of the public.

About this report 93

Our governance

The College’s Board of Trustees is the principal governance body within the College. The remit of the Board of Trustees is set out in Section XVIII of the Bye-Laws. The Board of Trustees has full management and control of the College (including its property and affairs) and of the administration thereof (other than those affairs which are designated as the responsibility of the Council under the Charter or the Bye-Laws). The Board meets four times a year, usually two weeks after a meeting of Council.

The Board of Trustees membership comprises of the Honorary Officers; one Devolved Council Chair; one Faculty Chair; one Division Chair; one Fellow, Member or Specialist Associate; and up to four Lay Trustees.

Honorary Officers are elected by fellows and members. During their election process they are given campaigning opportunities including a hustings event, a short video on the College site, a statement in RCPsych Insight and an online Q&A.

The prescribed manner for selection of the one Chair of the Devolved Councils, the one Faculty Chair, the one Chair of Division and the election of the one Member of College or Specialist Associate (as respectively referred to in paragraphs 2(e), 2(f) and 2(g) of Section XVII of the Bye-Laws).

The relevant qualifications and expertise for the Lay Trustees include, but are not limited to, the fields of finance, business management, mental health strategy and development, work with patients and carers, charity law and organisation. Potential Lay Trustees are sought by advertisement and are interviewed and appointed by a panel that comprises (one or more of) the President, Registrar, Dean and Treasurer.

Trustees are required to attend the College induction and also have a one-to-one induction with the Chief Executive, Director of Finance and Operations and other Senior Management Team members, where their responsibilities are explained, and they receive a copy of the College’s Constitution and Strategic Plan, policies and procedures, and a job description. In addition, Trustees are able to select to attend further Trustee and Governance specific learning opportunities.

The Board of Trustees is aware of the Charity Governance Code published in 2020 which sets out the principles and recommended practice for good governance within the sector. During 2022 the Board of Trustees held a Board Review session in which Trustees considered their performance as a board and compared the way they work, and are supported, in comparison with the recommendations for best practice, as set out in the Charity Commission Governance Code for Larger Charities. Overall, it was agreed there was a high level of compliance with the Code.

94 Our governance

The committees of the College during 2022 were:

Board

of Trustees

President Dr Adrian James Registrar Dr Trudi Seneviratne Dean Professor Subodh Dave Treasurer Professor John Crichton Devolved Council Chair Dr Richard Wilson Divisional representatives Dr Declan Hyland (to 20 June 2022) Professor Rafey Faruqui (from 20 June 2022) Faculty representative Dr Ken Courtenay (to 20 June 2022) Dr Josanne Holloway (from 20 June 2022) Elected representative Professor John Gunn Lay Trustees Cindy Leslie Meera Nair Sally Spensley Karen Turner

Finance Management Committee (sub-committee of the Board of Trustees)

Chair Professor John Crichton Divisional representatives Dr Declan Hyland (to 20 June 2022) Professor Rafey Faruqui (from 20 June 2022) Faculty representative Dr Mani Santhanakrishnan Devolved Nation representative Dr Linda Findlay Lay Trustees Cindy Leslie Sally Spensley

Our governance 95

Council

President Dr Adrian James Treasurer Professor John Crichton Registrar Dr Trudi Seneviratne Dean Professor Subodh Dave

Chairs of Devolved Administrations

RCPsych in Northern Ireland Dr Richard Wilson RCPsych in Scotland Dr Linda Findlay RCPsych in Wales Dr Maria Atkins

Chairs of English Divisions

Eastern Dr Kallur Suresh London Dr Peter Hughes (to 20 June 2022) Dr Suhana Ahmed (from 20 June 2022) Northern & Yorkshire Dr Paul Walker North West Dr Declan Hyland (to 30 June 2022) Dr Nishanth Babu Mathew (from 30 June 2022) South East Dr Rafey Faruqui South West Dr Rohit Shankar Trent Dr Shahid Latif West Midlands Dr Muhammad Gul

Chairs of Faculties

Academic Professor Hugo Critchley Addictions Professor Julia Sinclair (to 20 June 2022) Dr Emily Finch (from 20 June 2022) Child & Adolescent Dr Elaine Lockhart Eating Disorders Dr Agnes Ayton Forensic Dr Josanne Holloway General Adult Dr Billy Boland Intellectual Disability Dr Ken Courtenay (to 20 June 2022) Dr Indermeet Sawhney (from 20 June 2022) Liaison Dr Annabel Price

96 Our governance

Council

Chairs of Faculties

Medical Psychotherapy Dr Jessica Yakeley (to 19 June 2022) Dr Jo O’Reilly (from 20 June 2022) Neuropsychiatry Dr Michael Dilley Old Age Dr Mani Santhanakrishnan Perinatal Dr Joanne Black Rehabilitation & Social Dr Sunil Nodiyal

Chairs of Committees of Council

Conferences & Advanced Learning Dr Regi Alexander (to 27 July 2022) Dr Abdul Raoof (from 10 October 2022) Electroconvulsive Therapy & Related Treatments Committee Dr Rupert McShane (to 1 September 2022) Dr Rich Braithwaite (from 12 September 2022) Leadership & Management Dr Helen Crimlisk Professional Practice & Ethics Dr Mayura Deshpande (Acting) (to 1 April 2022) Dr Abdi Sanati (from 1 April 2022) Psychiatric Trainees’ Committee Dr Rosemary Gordon (to 1 September 2022) Dr Chris Walsh (from 1 September 2022) Psychopharmacology Professor Oliver Howes Policy & Public Affairs Committee Dr Trudi Seneviratne Publications Management Board Professor Kam Bhui Chief Examiner Dr Ian Hall

Elected Fellows and Members Dr Anandamandiram Ramakrishnan (to 20 June 2022) Dr Harm Boer (to 20 June 2022) Professor Russell Razzaque (to 20 June 2022) Dr Pierre-Stanislas Taub (to 20 June 2022) Dr Matthew Tovey (to 20 June 2022) Dr Mayura Deshpande (from 20 June 2022) Dr Ian Hall (from 20 June 2022) Dr Declan Hyland (from 20 June 2022) Dr Abdi Sanati (from 20 June 2022)

Co-Opted Members

CCQI Dr Dasha Nicholls Dr Mary Docherty NCCMH Professor Tim Kendall SAS Dr Lily Read

Our governance 97

International Divisions

The International Divisions of the College are:

Senior Management Team as at 31 December 2022

Chief Executive Paul Rees MBE
Director of Business Development Adam Pryce
Director of CCQI Peter Thompson
Director of Finance and Operations Calum Mercer
Director of Human Resources Marcia Cummings
Director of Information Systems Phil Burke
Director of NCCMH Tom Ayers
Director of Professional Standards Sonia Walter
Director of Strategic Communications Corinne Bishop

98 Our governance

Principal registered office

Charity Commission for England and Wales Registration number

Office of the Scottish Charity Regulator Registration number

Statutory Auditor

Internal Auditors

Principal bankers

Solicitors

21 Prescot Street London E1 8BB Telephone: 020 8918 4000 Website: www.rcpsych.ac.uk

228636

SC038369

Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

Crowe U.K. LLP St Bride’s House 10 Salisbury Square London EC4Y 8EH

Barclays Bank plc 1 Churchill Place London E14 5HP

Bates Wells 10 Queen Street Place London EC4R 1BE

Payne Hicks Beach 10 New Square Lincoln’s Inn London WC2A 3QG

Investment managers

Barclays Wealth Management Limited 1 Churchill Place London E14 5HP

Cazenove Capital 1 London Wall Place London EC2Y 5AU

Our governance 99

Our values

OURAGE C NNOVATION I ESPECT R OLLABORATION C EARNING L X CELLENCE E

@rcpsych RCPsych linkedin.com

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Charity of the year
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BEST EQUALITY,
DIVERSITY AND
INCLUSION
AWA R D S CAMPAIGN
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Charity Commission for England and Wales Registration Number 228636. Office of the Scottish Charity Regulator Registration Number SC038369.