2022-12-31-accounts - The Royal College Of Midwives Trust

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Company No: 1345335

Registered Charity No: 275261 (England and Wales) Registered Charity No: SC039694 (Scotland)

THE ROYAL COLLEGE OF MIDWIVES TRUST ANNUAL REPORT AND TRUSTEES’ ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

THE ROYAL COLLEGE OF MIDWIVES TRUST

GENERAL INFORMATION

FOR THE YEAR ENDED 31 DECEMBER 2022

AUDITOR Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW BANKER Unity Trust Bank plc PO Box 7193 Planetary Road Willenhall WV1 9DG INVESTMENT MANAGER Schroder & Co. Limited 31 Gresham Street London EC2V 7QA REGISTERED OFFICE 10- 18 Union Street London SE1 1SZ SOLICITOR Bates Wells Braithwaite 10 Queen Street Place London EC4R 1BE

THE ROYAL COLLEGE OF MIDWIVES TRUST

GENERAL INFORMATION

FOR THE YEAR ENDED 31 DECEMBER 2022

The RCM Trust is a company registered in England under company number 1345335. The company is registered as a charity in England and Wales (charity registration number 275261) and in Scotland (charity registration number SC039694).

The RCM Trust’s registered office is 10-18 Union Street, London, SE1 1SZ.

The trustees and those who acted during the year are:

Pauline Anne Twigg – Chair Michelle Beacock Janet Ballintine Nerys Kirtley

THE ROYAL COLLEGE OF MIDWIVES TRUST

ANNUAL REPORT AND TRUSTEES’ ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

CONTENTS
	Pages
REPORT OF THE BOARD OF TRUSTEES	5-10
INDEPENDENT AUDITOR’S REPORT	12-14
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES	15
BALANCE SHEET	16
NOTES TO THE ACCOUNTS	17-24

THE ROYAL COLLEGE OF MIDWIVES TRUST

REPORT OF THE BOARD OF TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees (who are also the directors of the company) present their report for the year ended 31 December 2022.

STRUCTURE, GOVERNANCE AND MANAGEMENT

(a) The governing document of the Royal College of Midwives Trust (RCM Trust) is a Memorandum and Articles of Association.

The RCM Trust is a company limited by guarantee and is a subsidiary of The Royal College of Midwives (the RCM). The RCM is a member of the Trust.

(b) Trustees are appointed by the RCM for terms of two years.
(c) An induction for newly appointed trustees is held every two years as near as conveniently possible to the date on which they take up office. Thereafter, trustees are supported for further education and training by external providers, including the Trust’s auditor and investments manager.
(d) The trustees are collectively known as the Board of Trustees (or the Trustee Board). Trustees are non-executive and unpaid. The Board retains overall responsibility for the control of the Trust and has delegated the management of the RCM Trust and its assets to a chief executive, Gill Walton. The Board of Trustees is advised by an audit and risk committee.
(e) Parties to which the RCM Trust is related are:
(i) The RCM
(ii) RCM Trust Trading Company Limited
(iii) The Benevolent Fund of The Royal College of Midwives Trust
(iv) RCM Information Services Ltd

(i) The RCM

The RCM (a company limited by guarantee that is not a charity) is a corporate member of the RCM Trust and appoints all of the trustees.

(ii) RCM Trust Trading Company Limited

This company conducts business and donates its profits under gift aid to the RCM Trust.

(iii) The Benevolent Fund of The Royal College of Midwives Trust

This was a charity governed by a scheme of the Charity Commission made on 18 April 2007 and altered on 24 March 2011 and 30 January 2014. The fund provides financial relief to eligible applicants. The RCM Trust was the fund’s trustee.

The negotiations and legal transfer was overseen by the RCM’s legal advisors to ensure the RCM and the integrity of the benevolent Fund is protected. RCM followed the Charity Commissioners protocol for charity transfer and our external auditors have overseen the process. This would now form a ring-fenced fund (restricted fund) within the Cavell Nurses Trust.

All of these parties are part of the RCM Group, and results are included in the RCM’s consolidated accounts. Therefore, transactions between the parties are not separately disclosed.

THE ROYAL COLLEGE OF MIDWIVES TRUST

REPORT OF THE BOARD OF TRUSTEES (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

(iv) RCM Information Services Ltd

This company conducts business and donates its profits under gift aid to the RCM Trust.

RCM Trust main purpose is to promote and advance the art and science of midwifery and the effectiveness of midwives

RCM Trust’s objectives for 2022 were to:

Promote the professional education of midwives
Provide information services to RCM members and public
Promote midwifery practice
Raise the research profile

RCM Trust’s objectives and activities.

Promote the professional education of midwives

There were no grants paid in 2022 to the RCM to carry out work on the RCM Trust’s behalf that fulfils the objectives of the To promote and advance the art and science of midwifery and the effectiveness of midwives. Those activities were funded by the RCM only.

Provide information services to RCM members and public

While the impact of the pandemic continued to be felt by health services and, by extension, those working in and around them, 2022 gave an opportunity for organisations like the RCM to broaden its focus to other issues. These have included ongoing challenges around workforce, both recruitment and retention, and the safety of maternity services. The profile and trusted status that the RCM was able to build during the pandemic ensured that the College continued to have a platform to share its concerns, its aspirations and its solutions to these deep-seated issues. The College received and responded to a significant number of requests during 2022 to submit evidence to enquiries and reports, including those by parliamentary committees. The College and its staff also frequently appeared in the media.

Promote midwifery practice

As the professional association for midwives and MSWs practising in the UK, the RCM develops and disseminates advice and guidance to aid safe, positive midwifery practice. Safety has been particular at the forefront of the RCM’s work across 2022, with the publication of two major inquiries into maternity services. The resulting reports, by Donna Ockenden and Dr James Kirkup, included a number of recommendations, including many that impacted directly on the College and on its role in promoting midwifery practice. The College produced a number of publications and events to support its members in delivering against those recommendations, and to improve practice and cohesion across multidisciplinary teams.

Raise the research profile

The RCM’s commitment to supporting good quality midwifery research continued in 2022. Research took equal billing with education in the College’s spring conference, with delegated coming from across the country to share best practice, knowledge and expertise. A new ‘research hub’ was developed on the RCM’s website, providing a natural destination for all those interested in research. In addition, a new awards scheme was announced to support those just starting on their research journey. The first recipients were named in 2023.

THE ROYAL COLLEGE OF MIDWIVES TRUST

REPORT OF THE BOARD OF TRUSTEES (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

The Alliance Partnerships

The Alliance Partnerships continue to support the aims and objectives of the RCM Trust. The current Alliance Partners are:

Emma’s Diary Slimming World Vitabiotics

RCM Information Services Ltd - Midirs

Subscription levels continued to improve from 2022, mostly from joint Student RCM members. Comparing period January-November 2021 to the same period in 2022 there was a 28% increase in total subscriber numbers. Institution subscriptions remained stable.

INTERNAL CONTROLS AND THE MITIGATION OF MAJOR RISKS

The trustees are responsible for managing the risks faced by the RCM Trust. An annual review of the RCM Trust’s risk management processes and systems took place, and policies have been put in place to mitigate any significant risk identified.

PRINCIPAL RISKS AND UNCERTAINTIES

Loss of income from the RCM Alliance programme

With the ongoing economic challenges, the RCM is conscious of the need to demonstrate value to its partners. This is even more important as the Alliance comprises of three long standing partners, all of whom are highly valued. There continues to be a focus on ensuring that the partnerships remain relevant and beneficial to all parties. With this in mind, the RCM has sought to ensure that partners continue to value the access and association with the College.

Loss of income for RCM Information Services:

Midirs continues to be the key income stream for RCM Information Services, which is a risk, particularly when individuals and organisations are looking to reduce their outgoings. To mitigate against this, the RCM has sought to increase offering and promote the services available via Midirs to ensure existing subscribers are retained and new subscribers signed up.

INVESTMENT POWERS, POLICY AND PERFORMANCE

The trustees have wide investment powers and delegate responsibility for managing the investment portfolio of the RCM Trust to its fund managers.

The investment policy has been prepared by the Investment Committee of the Board of Trustees and was approved by the Board of Trustees. The policy makes explicit the RCM Trust investment philosophy, and sets out the investment objectives and how these will be achieved. The investment objective is to maintain and grow the real capital value of the investments over the long term, while providing a suitable level of income to support the activities of the Trust. The long-term objective for the investment portfolio is to achieve a return by way of income and the capital growth of CPI plus 4% per annum after fees (updated in October 2021). The trustees adopted a balanced investment strategy with a medium-risk tolerance. The portfolio is primarily invested in equities with diversification through exposure to fixed income, property, commodities and absolute return funds.

THE ROYAL COLLEGE OF MIDWIVES TRUST

REPORT OF THE BOARD OF TRUSTEES (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

The RCM Trust has adopted an investment policy which ensures its investments do not conflict with its aims. The RCM Trust does not invest directly in companies involved in arms manufacture, tobacco, alcohol, breast milk substitutes or fossil fuels.

The trustees review the investment portfolio regularly with the fund managers, comparing performance against the benchmark and periodically reviewing the appropriateness of the benchmark. After three strong years of returns, 2022 was a difficult year, with equities and fixed income returning negative figures. Overall, the investment performance has approximately mirrored the market and the benchmark during the year.

The RCM Trust’s benchmark comprises the following:

20% UK equities, measured by the FTSE All Share Index 45% Overseas developed market equities, measured by the MSCI World ex UK Index 5% Overseas emerging market equities, measured by the MSCI Emerging Markets Index 5% Guilts, measured by the FTSE Gov’t All Stocks 5% Corporate bonds, measured by BofA non-Gilts 10% property, measured by the IPD UK Pooled 2% commodities, measured by SONIA+2% 6% absolute return, measured by SONIA+2% 2% cash, measured by SONIA

The movement of the RCM Trust’s investments during the year is shown in note 5 to the accounts.

FINANCIAL REVIEW

The RCM Trust’s total incoming resources amounted to £532,019 for the 12-month period, compared to £613,966 for the previous period. The main sources of income are the Alliance programme, investments, income from Midwives Information and Resource Service (MIDIRS) and donations.

Overall expenditure amounted to £450,124 compared to £569,601 in the previous period. After taking into account the (£29,626) overall loss on investments, the RCM Trust shows a net gain in funds of £52,269. This compares with the previous period’s net movement of £157,186.

The results include the RCM Trust Trading Company’s result of a net operating profit of £132,532. The company donates its profit to the RCM Trust. Separate accounts have been prepared, audited and signed off by the directors.

The Benevolent Fund was transferred to Cavell Nursing Trust in November 2021.

The result for RCM Information Services Ltd shows a surplus of £52,709 (2021: (£62,748)). The total income was £386,752 (2021: £354,591) and the expenditure was £334,043 (2021: £417,339).

FUTURE PLANS

In 2023 RCM Trust is aiming to continue to carry on with its objectives set up by Trustees. These are to promote the professional education of midwives and midwifery practice. It will also continue to provide information services to RCM members and public and try to raise the research profile.

GOING CONCERN

Having reviewed the financial position, the trustees reasonably expect that the charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt a goingconcern basis in preparing the financial statements.

THE ROYAL COLLEGE OF MIDWIVES TRUST

REPORT OF THE BOARD OF TRUSTEES (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

RCM TRUST RESERVES POLICY

The governance review looked into the relationship between the RCM and the RCMT and concluded, based on the substance of this relationship, that activities historically attributed to the RCMT can be performed by the RCM.

The impact of the review was that the RCMT in future would be a much smaller entity with income and associated expenditure considerably reduced. The main source of income will be the donation from its subsidiaries, the RCMT Trading Company, the RCM Information Services Ltd, investments and grants from external funders.

By implementing the governance review and recommendations in full, the Trustees would like to keep free reserves for operation purposes at the level of around £500K.

The main expenditure will be the library costs estimated at around £100K per year; a provision set aside of around £200K for funding potential projects should they arise, and £200K for unforeseen liabilities.

The financial statements show that total funds were £835,155 at the end of the year (2021: £782,886). At year-end this is broken down into endowed funds of £111,471 (2021: £122,714), restricted funds of £29,059 (2021: £36,066) and unrestricted funds of £694,625 (2021: 624,106).

The Trustees approved the RCMT’s budget for 2022 in November 2022.

STATEMENT OF THE TRUSTEES’ RESPONSIBILITIES

The trustees are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year in accordance with the United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law.

Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its net incoming/outgoing resources for that period.

In preparing these financial statements, the trustees are required to:

Select suitable accounting policies and then apply them consistently
Apply the concept and principles of the Charities SORP
Make judgements and estimates that are reasonable and prudent
State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements
Prepare the financial statements on the going-concern basis unless it is inappropriate to presume that the charity will continue to operate

The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company, and that are sufficient to enable the trustees to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charity and, hence, for taking reasonable steps to enable the prevention and detection of fraud and other irregularities.

THE ROYAL COLLEGE OF MIDWIVES TRUST

REPORT OF THE BOARD OF TRUSTEES (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Insofar as each of the trustees of the company at the date of approval of this report is aware, there is no relevant audit information (information needed by the company’s auditor in connection with preparing the audit report) of which the company’s auditor is unaware. Each trustee has taken all of the steps that he/she should have taken as a trustee in order to make himself/herself aware of any relevant audit information and to establish that the company’s auditor is aware of that information.

AUDITOR

Crowe U.K. LLP has indicated its willingness to be reappointed as statutory auditor. This trustees’ report has been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies.

Approved by the trustees on 21 July 2023 and signed on their behalf by

Pauline Anne Twigg Chair

THE ROYAL COLLEGE OF MIDWIVES TRUST INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE ROYAL COLLEGE OF MIDWIVES

FOR THE YEAR ENDED 31 DECEMBER 2022

Opinion

We have audited the financial statements of the Royal College of Midwives Trust (‘the charitable company’) for the year ended 31 December 2022 which comprise the consolidated statement of financial activities, the group and charity balance sheets and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 group’s and the charitable company’s affairs as at 31 December 2022 and of the group’s income and expenditure, for 31 December 2022 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 Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and Regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (amended).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable 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 trustee's 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 charitable company's or 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.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

THE ROYAL COLLEGE OF MIDWIVES TRUST INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

THE ROYAL COLLEGE OF MIDWIVES

FOR THE YEAR ENDED 31 DECEMBER 2022

In our opinion based on the work undertaken in the course of our audit

the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

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

adequate and proper accounting records have not been kept; or
the 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; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the trustees’ directors’ report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 9 -10, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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.

THE ROYAL COLLEGE OF MIDWIVES TRUST INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

THE ROYAL COLLEGE OF MIDWIVES

FOR THE YEAR ENDED 31 DECEMBER 2022

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations was taxation legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Board of Directors about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.

THE ROYAL COLLEGE OF MIDWIVES TRUST INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

THE ROYAL COLLEGE OF MIDWIVES

FOR THE YEAR ENDED 31 DECEMBER 2022

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members 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 charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Vincent Marke Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor

London

21 September 2023

THE ROYAL COLLEGE OF MIDWIVES TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

		Unrestricted	Restricted	Expendable	Permanent	Permanent	Total	Total	Total
	Notes	funds	funds	endowment	endowment		2022	2021
		£	£	£		£	£	£
Income and endowments from:
Donation and legacies		715	1,700	-		-	2,415	6,487
Other trading activities		524,227	-	-		-	524,227	593,702
Investments		3,470	1,907	-		-	5,377	13,210

Total		528,412	3,607	-		-	532,019	*613,399*
Expenditure on:
Trading Co’s		338,986	-	-		-	338,986	447,861
Charitable activities
Professional education		-	6,000	-		-	6,000	6,000
Information services to		99,732	1,907	-		792	102,431	92,538
Financial support to members		-	50	-		-	50	22,635
Grant to Cavell Nurses Trust	8	-	2,657	-		-	2,657	831,556

Total		438,718	10,614	-		792	450,124	*1,400,590*

Net gains (loss) on investments	5	(19,175)	-	-		(10,451)	(29,626)	*112,821*

Net (expenditure)/ income and movement in funds		70,519	(7,007)	-		(11,243)	52,269	*(674,370)*

Reconciliation of funds Funds brought forward		624,106	36,066	-		122,714	782,886	1,457,256
Funds carried forward		694,625	29,059	-		111,471	835,155		*782,886*

There are no recognised gains or losses other than as recognised above, and all activities are continuing

THE ROYAL COLLEGE OF MIDWIVES TRUST BALANCE SHEETS

FOR THE YEAR ENDED 31 DECEMBER 2022

		Group	Group	Group	Group		Charity
	Notes	2022		2021		2022	2021
		£		£		£	£
FIXED ASSETS
Investments	5	374,509		399,146		374,509	399,146
CURRENT ASSETS
Debtors	6	259,579		257,047		139,204	251,415
Cash at bank and in hand		748,487		736,477		558,781	419,994

		1,008,066		*993,524*		697,985	*671,409*
CREDITORS:Amounts falling
due within one year	7	(547,420)		(609,784)		(26,099)	(23,720)

NET CURRENT ASSETS			460,646		383,740	671,886	647,689

NET ASSETS			835,155		*782,886*	1,046,395	*1,046,835*

THE FUNDS OF THE CHARITY:
Endowed funds
Specific HQ			111,471		122,714	111,471	122,714
Benevolent fund			-		-	-	-
Restricted income funds
Benevolent funds			494		1,501	494	1,501
Other restricted funds			28,565		34,565	28,565	34,565

Unrestricted funds			29,059		*36,066*	29,059	*36,066*
General funds			694,625		624,106	905,865	888,055
TOTAL CHARITY FUNDS	8		835,155		*782,886*	1,046,395	*1,046,835*

The RCM Trust’s unconsolidated surplus for the year was £30,193.

Approved and authorised for issue by the Board of Trustees on 21 July 2023

Pauline Anne Twigg Chair

THE ROYAL COLLEGE OF MIDWIVES TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

1. STATUS OF THE COMPANY

The RCM Trust is a company limited by guarantee and incorporated in the UK (registered number 01345335). At 31 December 2022, there was one member – the RCM – with a guarantee. The company’s registered office address is 10 – 18 Union Street, London, SE1 1SZ. The financial statements are presented in pounds sterling and rounded to the nearest whole pound. The RCM Trust is a public benefit entity.

2. ACCOUNTING POLICIES

a) Accounting convention

The accounts are prepared under the historical cost accounting rules (modified by the revaluation of freehold property and investments) and in accordance with accounting standard FRS 102 and the Companies Act 2006. The accounts follow the Statements of Recommended Practice ‘Accounting and Reporting by Charities’ Charities SORP 2021 (FRS 102) issued by the Charity Commission.

The trustees have considered the financial position of the charitable company and its position within the overall group accounts. The trustees are satisfied that the level of reserves, the financial strength of the parent company (the RCM) and the plans for the future support the conclusion that the charity is a going concern.

b) Basis of consolidation

The consolidated accounts incorporate the accounts of the RCM Trust and its subsidiaries: the Benevolent Fund of The Royal College of Midwives, which is a subsidiary charity of the RCM Trust and so reported within the charity’s results and balances, and RCM Trust Trading Company Limited, a subsidiary company of the RCM Trust. The RCM Trust has taken advantage of the exemption available under Section 408 of the Companies Act not to present an unconsolidated Statement of Financial Activities.

c) Investments

Investments are stated at mid-market value at the balance sheet date and carried at fair value through the Statement of Financial Activities. Gains are calculated based on the difference between the closing market value or sales proceeds and the purchase price (if purchased during the year) or opening market value.

d) Income

Donated income is credited to the Statement of Financial Activities in the period in which it is received. Investment income primarily received in the form of distributions from listed investments, interest and other incoming resources is credited to the Statement of Financial Activities as it is earned. Income is recognised when the charity has entitlement to the funds, any conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

e) Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Overhead and other costs not directly attributable to particular functional activity categories are categorised as support costs and are apportioned over the relevant charitable activities on the basis of direct expenditure incurred on each activity. The irrecoverable element of VAT is included with the item of expense to which it relates. A liability is recognised when the charity enters into a legal or constructive obligation to a third party.

THE ROYAL COLLEGE OF MIDWIVES TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

2. ACCOUNTING POLICIES (CONTINUED)

Governance costs comprise the costs associated with complying with constitutional and statutory requirements, such as the costs of trustees’ meetings and of preparing statutory accounts and satisfying public accountability.

f) Financial instruments

The RCM Trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and are subsequently measured at their settlement value.

g) Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies, which are described in note 2, trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

In the view of the trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

3. TRUSTEE EXPENSES AND REMUNERATION

No member of the Board of Trustees received any remuneration from the RCM Trust. Trustees’ travel and subsistence expenses were borne by the RCM.

4. NET EXPENDITURE

Included within the total expenditure of £450,124 (2021: £1,400,590) are grants payments to individuals of £0 (2021: 18,042) and support costs of £22,105 (2021: 19,985).

The support costs include governance costs of £4,000 (2021: 4,000) of which £1,200 (2021: £1,200) are audit fees. As a result, the Trust having no employees, all services are provided by RCM and recharged through a management charge of £10,000 (2021: 10,000)

5. FIXED ASSET INVESTMENTS

Group and charity	2022	2022	2021	2021
	£		£
Market value at start of year	399,146		981,388
Additions	171,825		175,958
Disposals	(166,836)		(175,941)
Gains (losses)		(29,626)	112,821
Transfer to Cavell		-	(695,080)

Market value at 31 December		374,509		*399,146*

Cost at 31 December		347,510		328,458

The investments of the RCM Trust are managed by Cazenove Capital

THE ROYAL COLLEGE OF MIDWIVES TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

6. DEBTORS

	Group		Charity
	2022	2021	2022	2021
	£	£	£	£

Amounts due from RCM Trust Trading	-	-	132,532	208,589
Amounts due from RCM	-	-	-	12,065
Trade debtors	259,579	257,047	6,672	30,761
	259,579	*257,047*	139,204	*251,415*

7. CREDITORS

Amounts falling due within one year

	2022	2021	2022	2021
	£	£	£	£
Amounts due to RCM	251,210	291,026	6,000	6,781
Other creditors	7,510	62,607	3,327	160
Deferred income (incl. subs in advance RCM Information Services LTD and income from Alliance partners)	252,853	231,375	-	-
Accruals	35,847	24,776	16,772	16,879

	547,420	*609,784*	26,099	*23,720*

THE ROYAL COLLEGE OF MIDWIVES TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

8. MOVEMENT ON RESERVES

	At 1 January 2022	Incoming resources	Outgoing resources	Gains on investment	Transfer Cavell	At 31 December 2022
	£	£	£	£	£	£
Permanent endowment	122,714		(792)	(10,451)		111,471

Restricted funds
JJPI	34,565	-	(6,000)	-	-	28,565
Specific Headquarters Fund	-	1,907	(1,907)	-	-	-
Benevolent Fund	1,501	1,700	(50)		(2,657)	494

Total restricted funds	36,066	3,607	(7,957)	-	(2,657)	29,059

Unrestricted funds
General funds	624,106	528,412	(438,718)	(19,175)	-	694,625

Total funds	782,886	532,019	(447,467)	(29,626)	(2,657)	835,155

The income received relating to the permanent endowment fund (from The Fairbairn and Rosalind Paget Trust comprised in a Trust Deed dated 25 November 1942 is available to be expended on the RCM Trust’s library and educational activities. The fund is invested, and the income allocated to the Specific Headquarters Fund.

The Johnson & Johnson Pediatric Institute (JJPI) fund is towards the development and implementation of an initiative focused on neonatal examination and care.

RCM worked with Cavell Nurses Trust (CNT) since 2018 to improve the efficiency and performance of the Benevolent Fund. CNT administered the fund on behalf of the RCM under a management fee arrangement. In this time a number of improvements were made to the speed of our service, the amount of support we were able (jointly) to give to midwives and MSWs facing financial hardship and the customer service we were able to deliver. Throughout this process RCM and CNT worked to a common objective: to increase the number of midwives and MSWs we were able to support.

In 2021 the Executive proposed that RCM Trust should consider transferring the entire Benevolent Fund to CNT to secure its long term future and its sustainability. The Executive team have used the Charity Commissioner’s checklist to work through the strengths, weaknesses, opportunities and threats associated with this proposal. The Executive also explored the legal requirements, reputational risks and benefits to the RCM and its members. The RCM Trust

THE ROYAL COLLEGE OF MIDWIVES TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

8. MOVEMENT ON RESERVES (CONTINUED)

formally agreed to asset transfer and the most of the Benevolent fund assets were transferred to Cavell Nurses Trust on 23 November 2022. As at the end of December 2022, there was £1,501 cash left on the investment bank account to cover for the final Cazanove invoice for fees due. This account was closed in January 2022 and the transfer completed. The funds transferred are ring fenced for the benefit of midwives, students midwives and MSWs only. The RCM did not close the Benevolent Fund as a charity and has kept Unity bank accounts with holding of £1. This is to allow RCM to receive any future donations/ legacies made to the RCM BF.

COMPARATIVE 2021 MOVEMENTS ON RESERVES

	At 1 January 2021	Incoming resources	Outgoing resources	Gains on investment	Transfer Cavell	At 31 December 2021
	£	£	£	£	£	£
Permanent endowment	*109,505*		(752)	13,961		122,714
Expendable endowment	262,295	-	-	24,611	(286,906)	-
Restricted funds
JJPI	40,565	-	(6,000)	-	-	34,565
Specific Headquarters Fund	-	1,734	(1,734)	-	-	-
Benevolent Fund	506,315	14,696	(22,634)	47,775	(544,650)	1,501
NHS England grant – Continuity of Carer	177	-	(177)	-	-	-

Total restricted funds	*547,057*	16,430	(30,544)	47,775	(544,650)	36,066

Unrestricted funds
General funds	538,399	595,519	(536,286)	26,474	-	624,106

Total funds	*1,457,256*	611,949	(567,582)	112,821	(831,556)	782,886

THE ROYAL COLLEGE OF MIDWIVES TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

9. COMPARATIVES STATEMENT OF FINANCIAL ACTIVITIES

	Unrestricted	Unrestricted	Restricted	Restricted	Expendable	Expendable	Expendable	Permanent	Permanent	Permanent		*Total*
	funds		funds		endowment			endowment				*2021*
Income and endowments from:	£			£			£			£		£
Donations and legacies	-			6,487			-			-		6,487
Other trading activities	593,702			-			-			-		593,702
Investments	1,250			11,960			-			-		13,210
*Charitable activities*							-			-
Total	594,952			18,447			-			-		613,399


Expenditure on:
Trading	447,861			-			-			-		447,861
*Charitable activities*
Professional education	-			6,000			-			-		6,000
Information services to	87,858			3,928			-			752		92,538
members and the public	-			-			-			-		-
Grant to Cavell Nurses Trust	-		544,650				286,906			-		831,556

Total	535,719		577,213				286,906			752	1,400,590


Net gains (loss) on investments		26,474	47,775				24,611			13,961	112,821

Net (expenditure)/income and
movement in funds		85,707	(510,991)				(262,295)			13,209	(674,370)


Reconciliation of funds
Funds brought forward	538,399		547,057				262,295		109,205		1,457,256

Funds carried forward	624,106			36,066		_-_			122,714			782,886

THE ROYAL COLLEGE OF MIDWIVES TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

10. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund balances at 31 December 2022 are represented by:

Fund balances at 31 December 2022 are represented by:	Fund balances at 31 December 2022 are represented by:	Fund balances at 31 December 2022 are represented by:	Fund balances at 31 December 2022 are represented by:	Fund balances at 31 December 2022 are represented by:	Fund balances at 31 December 2022 are represented by:	Fund balances at 31 December 2022 are represented by:	Fund balances at 31 December 2022 are represented by:	Fund balances at 31 December 2022 are represented by:

	Endowed £		Restricted £		Unrestricted £		Total £
Investments		111,471		-	263,038		374,509
Current assets		-		29,059	979,007		1,008,066
Current liabilities		-		-	(547,420)		(547,420)

		111,471		29,059		694,625		835,155

COMPARATIVE 2021 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund balances at 31 December 2021 are represented by:

Fund balances at 31 December 2021 are represented by:	Fund balances at 31 December 2021 are represented by:	Fund balances at 31 December 2021 are represented by:	Fund balances at 31 December 2021 are represented by:	Fund balances at 31 December 2021 are represented by:	Fund balances at 31 December 2021 are represented by:	Fund balances at 31 December 2021 are represented by:	Fund balances at 31 December 2021 are represented by:	Fund balances at 31 December 2021 are represented by:

	Endowed £		Restricted £		Unrestricted £		Total £
Investments		122,714		-	276,432		399,146
Current assets		-		36,066	957,458		993,524
Current liabilities		-,		-	(609,784)		(609,784)

		122,714		36,066		624,106		782,886

11. SUBSIDIARY UNDERTAKINGS

At 31 December 2022, the RCM Trust (company no: 1345335; registered charity no: 275261 (England and Wales); registered charity no: SC039694 (Scotland)) and RCM Trust Trading Company Limited (company no: 5399453) and RCM Information services Ltd (company no: 11914882) formed part of the consolidated financial statements. The RCM Trust holds 100% of the share capital of RCM Trust Trading Company Limited and RCM Information Services Ltd. RCM Trust Trading Company Limited and RCM Information Services Ltd are registered in the UK and have the same registered offices as the RCM Trust.

At 31 December 2022, RCM Trust Trading Company Limited had assets of £157,097 (2021: £267,169), liabilities of £156,061 (2021: £266,133) and net assets of £1,036 (2021: £1,036). The turnover for the year to 31 December 2022 was £137,475 (2021: £239,678), the expenditure was £4,943 (2021: £31,089) and the profit for the year was £132,532 (2021: £208,589). The profit £132,532 for the year will be donated under gift aid donation (2021: 208,589) to the RCM Trust in the first half o f2023.

THE ROYAL COLLEGE OF MIDWIVES TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

11. SUBSIDIARY UNDERTAKINGS (CONTINUED)

At 31 December 2022, RCM Information Services Limited had assets of £285,516 (2021: £270,430), liabilities of £497,793 (2021: £535,416) and net assets of (212,277) (2021: (264,986)). The turnover for the year to 31 December 2022 was £386,752 (2021: £354,025), the expenditure was £334,043 (2021: £416 773) and the profit for the year was £52,709) (2021:(£62,748)).

Related parties

During the year to 31 December, the RCM Trust had the following transactions with other group entities:

	2022	2021
	£	£
Gift aid receivable from RCM Trust Trading	132,532	208,589
RCM amounts due to RCM Trust		12,065
RCM Trust amount due to RCM	6,000	-
Overheads and governance cost paid to RCM	14,000	14,000
RCM Information Services Ltd amounts due to RCM	239,847	284,987
RCM Trust amounts due to RCM Information Services Ltd	-	6,761

12. ULTIMATE PARENT COMPANY

The RCM, a company limited by guarantee (registered number 30157) and incorporated in Great Britain and registered in England and Wales, is the RCM Trust’s ultimate holding undertaking. The objectives of the RCM are to promote and advance the art and science of midwifery, and to promote the effectiveness and protect the interests of its members. The RCM is the Trust’s sole member. The consolidated financial statements of the RCM can be obtained from 10-18 Union Street, London, SE1 1SZ.