RVC Animal Care Trust
Registered Charity Number: 281571
**THE ROYAL VETERINARY COLLEGE ANIMAL CARE TRUST**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023**
## **Registered Charity Number: 281571**
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RVC Animal Care Trust
Registered Charity Number: 281571
## **CONTENTS**
|**OFFICERS AND ADVISORS**|**3**|
|---|---|
|**TRUSTEE’S REPORT FOR THE YEAR ENDED 31 JULY 2023**|**4**|
|**STATEMENT OF TRUSTEE’S RESPONSIBILITIES IN RESPECT OF THE TRUSTEE’S ANNUAL REPORT AND THE FINANCIAL**||
|**STATEMENTS**|**9**|
|**INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF ROYAL VETERINARY COLLEGE ANIMAL CARE TRUST10**||
|**STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2023**|**14**|
|**BALANCE SHEET AT 31 JULY 2023**|**15**|
|**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023**|**16**|
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RVC Animal Care Trust
Registered Charity Number: 281571
## **OFFICERS AND ADVISORS**
**Trustee** The Royal Veterinary College **Secretary to the Trust** Nadja Hale – Head of Fundraising **Principal Address** Royal Veterinary College Hawkshead Lane North Mymms Hatfield Hertfordshire AL9 7TA **Accountant** Royal Veterinary College Finance Department Royal College Street London NW1 0TU **Banker** Royal Bank of Scotland 1 Hardman Boulevard Manchester Manchester M3 3AQ **Solicitor** Mills and Reeve LLP Botanic House 100 Hills Road Cambridge CB2 1PH (DX 122891 Cambridge 4) **Auditor** BDO LLP 2 City Place Beehive Ring Road Gatwick West Sussex RH6 0PA **Website** www.rvc.ac.uk/act
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RVC Animal Care Trust
Registered Charity Number: 281571
## **TRUSTEE’S REPORT FOR THE YEAR ENDED 31 JULY 2023**
The Trustee presents the annual report for the year ended 31 July 2023 prepared in compliance with the Charities Act 2011, together with the audited financial statements for the year and confirms that this report complies with the requirements of the Trust Deed and the Charities SORP.
## **OBJECTIVES AND ACTIVITIES**
The Trust’s objectives as stated in the Trust Deed are:
'the advancement of education and of veterinary science medicine and surgery, the undertaking of research and the dissemination of the results thereof and such other charitable purposes for the relief of suffering among animals as the Trustee shall, from time to time, in its absolute discretion determine…’
In pursuit of these objectives, the Trust seeks to promote the welfare of animals through supporting:
- the education and training of veterinary practitioners and the support and assistance of students through the award of prizes, bursaries and scholarships and through improving facilities for students;
- research (including into disease and effective clinical treatments for injured and sick animals);
- the provision of clinical services; and
- the development of a suitable estate, equipment and facilities at the Royal Veterinary College.
In these ways the Trust seeks to advance knowledge and to help develop and strengthen the veterinary professions which deliver care to animals, nationally and internationally. Moreover, the Trust provides funding for clinical excellence by supporting the provision of the best possible clinical facilities with the most advanced equipment.
## **PUBLIC BENEFIT**
The Trustee confirms that it has referred to, and complies with, the guidance contained in the Charities (Accounts and Reports) Regulations 2008, concerning public benefit and incorporates appropriate considerations of public benefit when making decisions concerning the operations and expenditures of the charity.
The Trust’s principal activity during the year has been to raise and distribute funds to support the work of the Royal Veterinary College (RVC) and, in so doing, to promote excellence in veterinary education, the welfare of animals, and research into the causes of (and treatments for) disease. The RVC is not only the UK’s oldest and largest veterinary educational and research establishment, but its work is widely considered to be delivered to the highest of scientific, clinical and educational standards. It is, therefore, the belief of the Trustee that providing support to the RVC across the range of its endeavours represents the best possible use of the Trust’s charitable resources in applying them for the benefit of society in general, for animal-owners and for students pursuing veterinary and scientific careers who require education and training. The Trustee considers all of these benefits to arise directly from implementation of activities pursuant to the Trust’s objectives.
## **ACHIEVEMENTS AND PERFORMANCE**
The Trust’s work is funded by the general public, alumni of the RVC, charitable trusts and foundations, companies, clients of the RVC’s clinical facilities, participants in fundraising challenge events such as the London Marathon and many others. The Trust’s work is entirely dependent on this income.
Each year a substantial income is derived from legacies. The Trust is enormously grateful to those who leave part of their estate to benefit our work and, where legacies are restricted to specific purposes, we honour the
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RVC Animal Care Trust
Registered Charity Number: 281571
## **TRUSTEE’S REPORT FOR THE YEAR ENDED 31 JULY 2023 (CONTINUED)**
## **ACHIEVEMENTS AND PERFORMANCE (CONTINUED)**
wishes of the donor to the full. We often work with supporters to help shape their future legacies ensuring their wishes are carried out and that they have strategic impact for the RVC, the people we educate and the animals we seek to help.
During the year, the Trust distributed 78 grants, awards and transfers which totalled £535k covering the following purposes:
- £262k in support of education and research activities; and
- £273k in support of clinical facilities.
Since the COVID-19 pandemic and ensuing cost-of-living crisis, the RVC Animal Care Trust (ACT) Management Committee has adopted a more cautious approach in its assessment of new grant applications considering the level of investment return, the future call on funds and the potential impact on fundraising income in the short to medium term.
## **FINANCIAL REVIEW**
Overall, ACT income increased by 4% to £1,575k (2022: £1,517k). This was due mainly to a 10% increase in legacy income from £656k to £722k. However, this was offset by a 10% decrease in donation income from £667k to £603k. In total, unrestricted income generated by our fundraising activities decreased by 10% from £1,073k to £970k whilst restricted income generated to support specific projects, for which we were fundraising, increased by 36% from £443k to £604k.
We are very grateful to all our supporters – individuals, companies and charitable trusts and foundations – who have continued to support us in these turbulent times.
Investment income increased from £94k to £150k due largely to increased interest rates. Income from other trading activities comprised mainly bank interest and a small amount of income from Christmas card sales.
In common with other charities, the main risks and uncertainties relate to future income, inflation and other potential increases in costs. Changes in expenditure are monitored by the provision of regular budget reports to management. The reserves position is healthy with unrestricted funds standing at £2,541k at 31 July 2023 compared to staff costs of £207k and directly incurred non-grant costs of £69k. The Trust is, therefore, in a position to manage its expenditure within the combination of unrestricted reserves and funds raised each year.
The Trust benefits from the close relationship with the RVC’s clinical services with whom the Trust works to raise funds from hospital clients. In addition, the risk of income reducing is mitigated by increasing engagement with alumni and regular donors.
The Trust holds restricted funds whose purpose is circumscribed by the terms of the original donation. Where possible, the Trust's policy in regard to these funds is to invest them so as to secure sufficient income to satisfy the purpose of the donation and, thereafter, to achieve capital growth. In terms of their expenditure, the Trust operates a grant application process whereby individuals can apply to the Trust for funding for projects relating to animal health and care, education and research. Applications are assessed against the Trust’s charitable objects and, if approved, are funded from the most appropriate restricted fund, adhering to the purposes and restrictions of that fund.
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RVC Animal Care Trust
Registered Charity Number: 281571
## **TRUSTEE’S REPORT FOR THE YEAR ENDED 31 JULY 2023 (CONTINUED)**
## **FINANCIAL REVIEW (CONTINUED)**
The Trust also holds funds which it applies to specific projects. Some of these projects take several years to come to fruition and, from time to time, the Trust may hold significant funds on a short-term basis. Surplus cash is transferred to the RVC for deposit with its bankers and through its investment fund managers, UBS AG. Income is credited to restricted funds based on the returns achieved by the overall RVC portfolio. On 31 July 2023, a net loss of £17k was reported in relation to the Trust’s share of the portfolio. This compares to a £58k gain in 2022 and reflects the continued downturn in the economic markets due to high global interest rates and the continuing Ukraine conflict.
With the exceptions noted above, the Trust has no specific policy in respect of general reserves other than that, on a year-on-year basis, the Trust's resources should be sufficient to meet its operational costs. The current level of general reserve balances satisfies this requirement.
## **FUNDRAISING AT THE ACT**
Our supporters are at the heart of everything we achieve, and our fundraised income makes a real difference to animal health and care. We have a diverse range of fundraising activities, from legacies, which usually represent over half of our fundraised income, through to events, individual giving and volunteer fundraising. We are proud to be registered with the Fundraising Regulator and carry out regular checks of our fundraising systems and processes to ensure we are fully compliant with the Fundraising Code of Practice. In April 2022, an audit was carried out by the RVC’s internal auditors, evaluating RVC’s data and financial management systems and procedures, which are consistent with the procedures followed at the ACT. Our processes were found to be robust and effective and the recommendations made have been incorporated into our processes. We also have processes in place to ensure we adhere to the Fundraising Preference Service. We did not receive any requests to discontinue communications via the Service this year.
Currently we utilise a mixture of consent and legitimate interest as our legal basis for processing supporters’ personal data for marketing purposes. When we rely on legitimate interest as a legal basis for contacting our supporters, we only do so having considered and balanced any potential impact on the supporter and their rights under data protection laws.
Fundraising activity is reported to the ACT Management Committee on a quarterly basis. The Management Committee is responsible for oversight of the day to day running of the ACT as delegated by the ACT’s sole trustee, the RVC Council. Reports are also submitted to the RVC’s Finance and General Purposes Committee to ensure that significant risks are monitored and are being properly addressed. The ACT has policies in place relating to Gift Acceptance, Due Diligence and Data Management with systems to escalate concerns to relevant senior individuals or bodies in certain circumstances.
## **THIRD PARTY FUNDRAISERS**
The ACT does not currently employ third party companies to fundraise on its behalf.
## **VULNERABLE PEOPLE**
The ACT aims to fundraise appropriately with all of our supporters and we are particularly conscious of our responsibilities to vulnerable people. Anyone fundraising on behalf of the ACT must ensure they communicate clearly and do not exploit the credulity, lack of knowledge, or vulnerable circumstances of any member of the public at any point in time. Where any member of ACT staff or a volunteer is fundraising for the ACT and is concerned about an individual’s capacity to understand their actions and the consequence of those actions, they must cease the fundraising activity immediately and report the situation to the Head of Fundraising. If a vulnerability is confirmed subsequent to a donation being made, and the donor or their representative requires
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RVC Animal Care Trust
Registered Charity Number: 281571
## **TRUSTEE’S REPORT FOR THE YEAR ENDED 31 JULY 2023 (CONTINUED)**
## **VULNERABLE PEOPLE (CONTINUED)**
the donation to be returned, this will be reported to the Management Committee and effected as soon as is practicable.
The ACT complies in full with the RVC’s Safeguarding Policy (updated July 2023).
## **COMPLAINTS**
From the many thousands of communications we have had with supporters this year, we received no complaints about our fundraising practices. We take complaints very seriously and would respond according to our complaints policy.
## **DATA PROTECTION**
The ACT has a Privacy Policy which is available to all on our website (https://www.rvc.ac.uk/act/policy). We only contact individuals who have either opted into communications with us and/or there is a genuine and legitimate reason for our communication and we are not harming the rights and interests of those individuals. As part of the April 2022 internal audit, our data systems were checked for compliance with the law and regulations and found to be robust.
## **PLANS FOR FUTURE PERIODS**
The ACT’s fundraising activity supports the RVC’s ongoing strategic objectives. The RVC has embarked on a significant programme of investment in its estate, facilities and equipment, across both campuses. The ACT will continue to focus on projects which benefit animals through the provision and development of outstanding veterinary medicine largely through supporting the RVC’s hospitals, as well as supporting RVC research and supporting students.
We are fortunate to have received donations and legacies from alumni and other supporters specifically to help our students, particularly those who experience financial difficulties. The cost-of-living crisis has caused difficulties for a number of students, particularly those who seek to support their educational costs through part-time work, often in the hospitality industry, and those whose personal IT equipment is insufficient to support their online learning and examinations. We continue to liaise closely with the RVC Student Support Team to ensure funds are available to help students who find themselves unable to work or who experience financial problems.
Legacy income was initially affected by the pandemic because of a backlog in the probate system and a temporary halt to house sales; however, these issues started to improve by the beginning of 2021 and legacy income has increased since as a result. Whilst the complications caused by the pandemic itself appear to have largely gone away, the cost-of-living crisis is a concern and we will continue to monitor the effects of this carefully into Winter 2023 particularly the level of general donations and regular givers.
The Trust will continue to support projects across the RVC through its main and small grants’ schemes and projects to support students and their activities.
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RVC Animal Care Trust
Registered Charity Number: 281571
## **TRUSTEE’S REPORT FOR THE YEAR ENDED 31 JULY 2023 (CONTINUED)**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
The Royal Veterinary College Animal Care Trust is a trust established on 21 November 1980 and registered as a charity on 15 December 1980. The Charity Commission registration number is 281571. The charity is governed by its Trust Deed which established the objects and powers of the Trust. The charity is also known as the Animal Care Trust and the ACT. It was formerly known as the Royal Veterinary College Animal Welfare Trust and changed its name to the Royal Veterinary College Animal Care Trust on 12 October 1982. The Trust has a single Trustee, the Council of the RVC, which has devolved responsibility for general management of the Trust to the ACT Management Committee.
The Head of Fundraising is responsible for operating the Trust’s policies and for the preparation of budgets and plans and works closely with the Director of External Relations. At the date of this report the Trust has three full time staff members and four part-time staff members (three at 80% FTE and one at 60% FTE). All staff members are seconded to the Trust by the RVC. Members of staff manage the following functions: major gifts, appeals and fundraising events, trusts and legacies, fundraising administration and management of the charity’s grant application process.
Financial management and investment management services are provided by the RVC through its Finance Department and the Trust pools its assets with those of the RVC for investment purposes, with the funds managed by UBS AG. The RVC also provides office accommodation and storage space for the Trust at its Hawkshead campus.
## **POLICY AND PROCEDURE FOR RECRUITMENT, INDUCTION AND TRAINING**
The Trust has a sole Trustee which is an institution: the RVC. Accordingly, the Trustee has appointed a Management Committee of individuals to act as its proper officers and so fulfil its obligations. There are eight positions on the Management Committee appointed by the Trustee through the RVC Council, seven of which were occupied during the year. Each of the members of the ACT Management Committee is either a member of senior RVC staff or of the RVC Council. The members of the Management Committee during the year were Professor Stephen A May (Chair), Professor Adrian Boswood, Professor David B Church, Mr Ian Darker, Dr Imelda McGonnell, Professor Oliver Pybus, and Professor Stuart WJ Reid. The Head of Fundraising and Secretary to the Animal Care Trust, the Director of External Relations, and the Royal Veterinary College’s Finance Director are in attendance at the Management Committee’s meetings.
## **GOING CONCERN**
The Trustee has assessed the Trust’s finances for a period of 12 months from the date of approval of these financial statements and, taking account of reasonably possible downsides such as reduced donations/legacies income and increased costs, has concluded that it has sufficient funds to meet its liabilities as they fall due for that period. The Trust’s discretionary spend is completely under the control of the Trustee and is such that the Trust’s fixed financial commitments during the going concern period (which are relatively limited) could be met comfortably within the Trust’s current net assets.
Consequently, the Trustee is confident that the Trust will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and consequently has prepared the financial statements on a going concern basis.
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RVC Animal Care Trust
Registered Charity Number: 281571
## **STATEMENT OF TRUSTEE’S RESPONSIBILITIES IN RESPECT OF THE TRUSTEE’S ANNUAL REPORT AND THE FINANCIAL STATEMENTS**
The Trustee is responsible for preparing the Trustee’s report and the financial statements in accordance with applicable law and regulations.
Charity law requires the Trustee to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the Trustee 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.
In preparing these financial statements, the Trustee is required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustee is responsible for the maintenance and integrity of the financial and other information included on the charity’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **STATEMENT OF DISCLOSURE TO THE AUDITOR**
- a) so far as the Trustee is aware, there is no relevant information that has not been disclosed to the Trust’s auditor; and
- b) the Trustee believes that all steps have been taken that ought to have been taken to make them aware of any relevant audit information and to establish that the Trust’s auditor have been made aware of that information.
Approved by the Trustee on 29 November 2023 and signed on its behalf by:
Professor Stuart W J Reid Member, Council, Royal Veterinary College
Professor Stephen May Chair, ACT Management Committee
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RVC Animal Care Trust
Registered Charity Number: 281571
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF ROYAL VETERINARY COLLEGE ANIMAL CARE TRUST**
## **Opinion on the financial statements**
In our opinion, the financial statements:
- give a true and fair view of the state of the Charity’s affairs as at 31 July 2023 and of the Charity’s incoming resources and application of resources 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 Act 2011.
We have audited the financial statements of RVC Animal Care Trust (“the Charity”) for the year ended 31 July 2023 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Independence**
We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
## **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 Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustee with respect to going concern are described in the relevant sections of this report.
## **Other information**
The Trustee is responsible for the other information. The other information comprises the information included in the annual report and financial statements, 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
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RVC Animal Care Trust
Registered Charity Number: 281571
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF ROYAL VETERINARY COLLEGE ANIMAL CARE TRUST (CONTINUED)**
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 where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information in the Trustee’s Annual Report for the financial year for which the financial statements are prepared is inconsistent in any material respect with the financial statements; or
- adequate accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustee**
As explained more fully in the statement of Trustee’s responsibilities, the Trustee is 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 Trustee determines 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 Trustee is 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 Trustee either intends to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
## **Extent to which the audit was capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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RVC Animal Care Trust
Registered Charity Number: 281571
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF ROYAL VETERINARY COLLEGE ANIMAL CARE TRUST (CONTINUED)**
_Non-compliance with laws and regulations_
Based on:
- our understanding of the Charity and the industry in which it operates;
- discussion with management and those charged with governance; and
- obtaining and understanding of the Charity’s policies and procedures regarding compliance with laws and regulations.
we considered the significant laws and regulations to be the applicable accounting framework, the Charities Act 2011 and UK tax legislation.
The Charity is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be Employment Law, Data Protection and Health and Safety Legislation.
Our procedures in respect of the above included:
- review of minutes of meeting of those charged with governance for any instances of non-compliance with laws and regulations;
- review of correspondence with tax authorities for any instances of non-compliance with laws and regulations;
- review of financial statement disclosures and agreeing to supporting documentation; and
- review of legal expenditure accounts to understand the nature of expenditure incurred.
## _Fraud_
We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:
- enquiry with management and those charged with governance regarding any known or suspected instances of fraud;
- obtaining an understanding of the Charity’s policies and procedures relating to:
- detecting and responding to the risks of fraud; and
- internal controls established to mitigate risks related to fraud.
- review of minutes of meeting of those charged with governance for any known or suspected instances of fraud;
- discussion amongst the engagement team as to how and where fraud might occur in the financial statements; and
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
Based on our risk assessment, we considered the areas most susceptible to fraud to be posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates. Our procedures in respect of the above included:
• identifying and testing journal entries, in particular any journal entries posted from staff members with privilege access rights, journals posted by related parties and key management, journals posted by individuals outside of their expected job roles, unusual journal combinations and other journals deemed unusual based on our expectations; and
• challenging assumptions made by management in their significant accounting estimates in particular in relation to the actuarial assumptions used in the Universities Superannuation Scheme.
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RVC Animal Care Trust
Registered Charity Number: 281571
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF ROYAL VETERINARY COLLEGE ANIMAL CARE TRUST (CONTINUED)**
## _Fraud (continued)_
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located 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 Trustee, as a body, in accordance with paragraph 154 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the Charity’s Trustee those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s Trustee as a body, for our audit work, for this report, or for the opinions we have formed.
Paul Jagger (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor Gatwick, UK
## Date: 18 December 2023
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
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RVC Animal Care Trust
Registered Charity Number: 281571
|**STATEMENT OF**|**FINANCIAL ACTIVITIES**|**FOR THE YEAR**|**ENDED 31 JULY**|**2023**||
|---|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**Endowment**|**2023**|**2022**|
||**Funds**|**Funds**|**Funds**|**Total**|**Total**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|**Income and endowments from:**||||||
|Donations|224|379|-|603|667|
|Legacies|614|108|-|722|656|
|Donated services and facilities|93|-|-|93|98|
|Other trading activities|7|-|-|7|2|
|Investments|32|117|1|150|94|
|**Total Income**|**970**|**604**|**1**
|**1,575**|**1,517**|
|**Expenditure on:**||||||
|Raising voluntary income|(275)|(1)|-|(276)|(305)|
|Charitable activities|(40)|(504)|(3)|(547)|(746)|
|Investment management costs|(1)|(15)|-|(16)|(16)|
|Donated services and facilities|(93)|-|-|(93)|(98)|
|**Total Expenditure**|**(409)**|**(520)**|**(3)**|**(932)**|**(1,165)**|
|Net(losses)/gains on investments|(1)|(16)|-|(17)|58|
|**Net income for the year**|**560**|**68**|**(2)**|**626**|**410**|
|**Net movement in funds for the**|
**560**|**68**|**(2)**|**626**|**410**|
|**year**||||||
|**Reconciliation of funds:**||||||
|Total funds brought forward|1,981|3,109|18
|5,108|4,698|
|**Total funds carried forward**|**2,541**|**3,177**|**16**
|**5,734**|**5,108**|
The notes on pages 16 to 23 form part of these financial statements.
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RVC Animal Care Trust
Registered Charity Number: 281571
## **BALANCE SHEET AT 31 JULY 2023**
||**Note**|**Unrestricted**|**Restricted**|**Endowment**|**2023**|**2022**|
|---|---|---|---|---|---|---|
|||**Funds**|**Funds**|**Funds**|**Total**|**Total**|
|||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|**Fixed Assets**|||||||
|Investments|4|706|3,177|16|3,899|3,782|
|**Current Assets**|||||||
|Debtors|5|1,956|-|-|1,956|492|
|Cash and cash equivalents||73|-|-|73|992|
|**Current Liabilities**|||||||
|Creditors: Amounts due in less|6|(107)|-|-|(107)|(64)|
|than oneyear|||||||
|**Net Current Assets**||**1,922**|**-**|**-**|**1,922**|**1,420**|
|**Total assets less current liabilities**||**2,628**|**3,177**|**16**|**5,821**|**5,202**|
|Provision forpension liabilities|11|(87)|-|-|(87)|(94)|
|**Total net assets**||**2,541**|**3,177**|**16**|**5,734**|**5,108**|
|**The funds of the charity:**|||||||
|Endowment funds|8|-|-|16|16|18|
|Restricted income funds|8|-|3,177|-|3,177|3,109|
|Unrestricted funds|9|2,541|-|-|2,541|1,981|
|**Total charity funds**||**2,541**|**3,177**|**16**|**5,734**|**5,108**|
The financial statements on pages 14 to 23 were approved by the Trustee on 29 November 2023 and signed on its behalf by:
**Professor Stuart W J Reid** Member, Council Royal Veterinary College
**Professor Stephen May** Chair ACT Management Committee
15
RVC Animal Care Trust
Registered Charity Number: 281571
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023**
## **1. CHARITY INFORMATION**
The Royal Veterinary College Animal Care Trust (ACT) is a charity established by charitable trust deed and registered with the Charity Commission for England and Wales (registered charity number 281571). The address of the registered office is The Royal Veterinary College, Hawkshead House, Hawkshead Lane, North Mymms, Hatfield, AL9 7TA.
## **2. ACCOUNTING POLICIES**
## **ACCOUNTING CONVENTION**
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) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.
In preparing these financial statements the Charity has taken advantage of the following disclosure exemption conferred by FRS102:
- Exemption from the requirements of Section 7 Statement of Cash Flows and paragraph
- 3.17(d).
This information is included in the consolidated financial statements of the Royal Veterinary College as at 31 July 2023 and these financial statements can be obtained from Royal Veterinary College, 4 - - Royal College Street, London NW1 0TU or from https://www.rvc.ac.uk/about/the rvc/financial information/annual-report-and-financial-statements
## **GOING CONCERN**
The Royal Veterinary College Animal Care Trust (ACT) operates a bid-based approach to grants with applications sought from students and staff at the Royal Veterinary College (RVC) several times each year. As bids and grants are made in the same financial year, the Trust has no forward commitments at the end of each financial year. The Trust is not dependent on external investment income or donations to continue grant making activities, given the balances held at 31 July 2023. Although increased inflation and the impact of the war in Ukraine have presented challenges in terms of investment returns and ongoing giving by donors, these have eased and the Trustee does not assess them as being material uncertainties that would threaten the ability of the Trust to continue as a going concern. There are sufficient unrestricted reserves to cover the Trust’s direct costs for more than a period of 12 months from the date of the signature of these accounts.
In making this assessment, the Trustee has taken into account all available information regarding the future of the Animal Care Trust.
## **FUND ACCOUNTING**
The charity maintains three types of funds:
- i. Unrestricted funds represent income which is expendable at the discretion of the Trustee in the furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital investment. The Trustee may designate unrestricted funds for specific charitable purposes.
- ii. Restricted funds represent grants, donations and legacies received which are allocated by the donor for specific purposes.
- iii. Endowment funds are funds which are classified as either:
16
RVC Animal Care Trust
Registered Charity Number: 281571
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 (CONTINUED)**
- a) permanent endowments where the Trustee can only spend the unapplied income generated by capital; or
- b) expendable endowments where the Trustee may expend the capital providing that all unapplied income has been spent.
## **INVESTMENT POLICY**
Opening fund balances represent monies donated through the ACT in prior years. Unless donors specifically reference the RVC in their gifts, general philanthropy is channelled through the ACT and these funds are recorded in the ACT accounts. Fund-raising campaigns for specific purposes are generally undertaken under the ACT banner although specific campaigns may be run in support of the RVC, particularly where the link to the direct benefit to animals is less obvious. The ACT and RVC funds are pooled and invested with a fund manager and investment returns are attributed to the individual fund balances on an annual basis in proportion to their share of the total portfolio. The ACT’s share for the financial year 2022-23 is 23% (2021-22: 23%). Although the account with the fund manager is in the RVC’s name, the RVC effectively holds the funds in trust for the ACT, which is the legal owner.
## **INCOME**
All income is recognised once the Trust has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
General cash donations, gifts, legacies and collections are recognised when the Trust has entitlement to the funds. Legacies are only recognised when the Trust has been notified of the executor’s intention to make a distribution and the amount can be measured reliably. Income from investments, including appropriate tax credits, is accounted for on a receivable basis. The Trust receives trading income from the sale of branded greeting cards, clothing, and gifts.
## **EXPENDITURE**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Trust to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis.
Costs of generating voluntary funds mostly relate to expenditure incurred in motivating individual supporters and trusts to donate to the work of the Trust and consist principally of the salary and related costs of the fundraising department.
Charitable activities consist of funding the RVC hospitals, scholarships and academic posts and publicising the Trust’s objectives by newsletters. Governance costs relate to expenditure incurred in the management of the Trust’s assets, organisational administration and compliance with constitutional and statutory requirements.
Direct attribution is used to allocate expenditure to activities. Staff cost and non-attributable costs are apportioned by time.
## **DONATED SERVICES AND FACILITIES**
Donated services are provided by the RVC and valuations are based on actual costs. The Trust also occupies space owned by the RVC and the notional value of this is based on market rent, along with an allocation of running costs.
17
RVC Animal Care Trust
Registered Charity Number: 281571
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 (CONTINUED)**
## **TAXATION STATUS**
The Trust is a registered charity and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010. It, therefore, meets the definition of a charitable trust for UK income tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Part 10 Income Tax Act 2007 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **PENSION COSTS**
Staff are employed by the RVC and their costs are charged to the Trust. This includes contributions to USS and SAUL’s hybrid benefit pension schemes. The charges to the Statement of Financial Activities include the actual contributions paid as well as any costs of maintaining a provision to fund pension deficit recovery plans.
## **CASH AND CASH EQUIVALENTS**
Cash and cash equivalents consist of cash at bank, in hand, deposits and short term investments with an original maturity of three months or less.
## **3. EXPENDITURE**
|**3. EXPENDITURE**|||||
|---|---|---|---|---|
||**Direct**|**Allocated**|**Total**|**Total**|
||**costs**|**staff costs**|**2023**|**2022**|
||**£’000**|**£’000**|**£’000**|**£’000**|
|Cost of generating voluntary income|69|126|195|253|
|Investment management costs|16|-|16|16|
|Donated services and facilities|93|-|93|98|
|Support for education and research|262|30|292|577|
|Support for veterinary clinics|273|12|285|186|
|Charitable activities – publicity and newsletters|12|39|51|35|
|**TOTAL EXPENDITURE**|**725**|**207**|**932**|**1,165**|
Staff costs are apportioned by time. Non-staff costs are directly attributed to activities. Shared costs are apportioned based on usage. The audit fee for the year is £6,788 (2022: £4,816).
Donated services and facilities refer to premises-related costs incurred, and professional services provided, by the RVC in support of the ACT.
Support for education and research and for veterinary activities is funded by transfers to the RVC from both restricted and unrestricted income.
Funds are raised through a variety of means including appeals to alumni of the RVC and to the wider database of Trust supporters, sponsored fundraising events and the promotion of legacies.
Charitable activities are supporting the RVC’s veterinary clinics, the provision of studentships and scholarships, student support, expanding participation in the veterinary profession through widening participation activities and community engagement, the provision of support for research and
18
RVC Animal Care Trust
Registered Charity Number: 281571
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 (CONTINUED)**
## **3. EXPENDITURE (CONTINUED)**
teaching, publishing of information and maintaining a dedicated office to facilitate all of this work. Expenditure through the grants programme is recorded in this line.
|**Staff costs**|**2023**|**2022**|
|---|---|---|
||**£’000**|**£’000**|
|Salaries|168|141|
|Social security costs|15|13|
|Pension costs|34|27|
|USSpension deficit recovery provision|(10)|49|
|**TOTAL STAFF COSTS**|**207**|**230**|
The average number of staff, all administrative, during the year was 6 (2022: 5).
Staff are employed by the RVC and their costs are charged to the Trust. The number of staff to whom retirement benefits are accruing under hybrid benefit schemes is 7 (2022: 5).
One employee was paid between £60,000 and £70,000 in the current year (2022: 1).
No member of the ACT Management Committee, or person related or connected by business to it has received any remuneration from the Trust during the year. No expenses were reimbursed to members of the RVC Council or the ACT Management Committee during the year (2022: £Nil).
## **4. INVESTMENTS**
|**4. INVESTMENTS**|||
|---|---|---|
||**2023**|**2022**|
||**£’000**|**£’000**|
|Investments held with Investment Manager|3,899|3,782|
|**TOTAL INVESTMENTS**|**3,899**|**3,782**|
Investments includes cash held within the investment portfolio managed by UBS AG.
## **5. DEBTORS**
||**2023**|**2022**|
|---|---|---|
||**£’000**|**£’000**|
|Current account with the RVC|1,329|-|
|Other debtors and accrued income|627|492|
|**TOTAL DEBTORS**|**1,956**|**492**|
Other debtors include accrued legacy income of £627k (2022: £492k).
## **Deposit held by the RVC for Trust**
Restricted funds are held in trust by the RVC for the ACT and interest on cash instruments held within the RVC investment portfolio is credited to restricted funds.
19
RVC Animal Care Trust
Registered Charity Number: 281571
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 (CONTINUED)**
## **6. CREDITORS DUE WITHIN ONE YEAR**
|**6. CREDITORS DUE WITHIN ONE YEAR**|||
|---|---|---|
||**2023**|**2022**|
||**£’000**|**£’000**|
|Current account with the RVC|99|60|
|Accruals|8|4|
|**TOTAL CREDITORS**|**107**|**64**|
## **7. RELATED PARTY TRANSACTIONS**
The Trust has taken advantage of the exemption conferred under FRS 102 to not disclose transactions with the parent, The Royal Veterinary College.
## **8. MOVEMENTS IN ENDOWMENTS AND RESTRICTED FUNDS**
||**Opening**|**Income**|**Net loss on**|**Expenditure**|**Closing**|
|---|---|---|---|---|---|
||**Balance**|**during year**|**investment**|**during year**|**Balance**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Hospitals|1,644|276|(8)|(271)|1,641|
|Scholarship and Hardship||||||
|Funds|194|7|(1)|(48)|152|
|Support for Education and||||||
|Research|1,289|322|(7)|(204)|1,400|
|**TOTAL**|**3,127**|**605**|**(16)**|**(523)**|**3,193**|
All funds are for the same overall purpose of the promotion of animal care and welfare. They are used for hospital or research equipment, scholarship, student support, academic chairs and other facilities.
There were no legacies notified but not meeting the recognition criteria set out in the Trust’s Accounting Policies (and, therefore, not included in the Statement of Financial Activities) (2022: £670k).
## **9. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|**9. ANALYSIS OF NET ASSETS BETWEEN FUNDS**|||
|---|---|---|
||**2023**|**2022**|
||**£’000**|**£’000**|
|**Endowment and restricted funds**|||
|Scholarships and Fellowships|1,552|1,483|
|Equipment and other restricted funds|1,641|1,644|
||3,193|3,127|
|**Unrestricted Funds**|2,541|1,981|
|**TOTAL FUNDS**|**5,734**|**5,108**|
## **10. ULTIMATE PARENT ENTITY**
The ultimate parent and controlling entity of the Trust is the Royal Veterinary College (RVC), an exempt charity incorporated by Royal Charter. Copies of the financial statements of the RVC are available from the Royal Veterinary College, Royal College Street, London NW1 0TU.
20
RVC Animal Care Trust
Registered Charity Number: 281571
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 (CONTINUED)**
## **11. PENSION SCHEMES**
The RVC, which employs the staff seconded to the Trust, participates in the Universities Superannuation Scheme (USS), and the Superannuation Arrangements of the University of London (SAUL), and the costs of pension contributions to these schemes, relating to seconded staff, are, therefore, recharged to the company. Contributions to the schemes for the period were USS: £15,913 (2022: £15,597) and SAUL: £17,728 (2022: £11,516). The employer’s contribution rate for USS was 21.6%. The employer’s contribution rate for SAUL was 19% up until 31 December 2022 and 21% thereafter.
The pension provision relates to the Trust’s liability under the deficit recovery plan for the USS pension scheme. The liability is in respect of the Trust’s seconded staff. The provision is based on the latest 2020 valuation and has decreased by £7k compared to the prior year (2022: £49k increase). No provision is held in respect of the SAUL pension scheme.
21
RVC Animal Care Trust
Registered Charity Number: 281571
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 (CONTINUED)**
## **12. PRIOR YEAR COMPARATIVE FIGURES FOR THE FINANCIAL STATEMENTS**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2022**
||**Unrestricted**|**Restricted**|**Endowment**|**2022**|
|---|---|---|---|---|
||**Funds**|**Funds**|**Funds**|**Total**|
||**£’000**|**£’000**|**£’000**|**£’000**|
|**Income and endowments from:**|||||
|Donations|376|291|-|667|
|Legacies|592|64|-|656|
|Donated services and facilities|98|-|-|98|
|Other trading activities|2|-|-|2|
|Investments|5|88|1|94|
|**Total income**|**1,073**|**443**|**1**|**1,517**|
|**Expenditure on:**|||||
|Raising voluntary income|(302)|(3)|-|(305)|
|Charitable activities|(293)|(452)|(1)|(746)|
|Investment management costs|(1)|(15)|-|(16)|
|Donated services and facilities|(98)|-|-|(98)|
|**Total expenditure**|**(694)**|**(470)**|**(1)**|**(1,165)**|
|Net gains on investments|3|55|-|58|
|**Net income for the year**|**382**|**28**|**-**|**410**|
|**Net movement in funds for the**|**382**|**28**|**-**|**410**|
|**year**|||||
|**Reconciliation of funds:**|||||
|Total funds brought forward|1,599|3,081|18|4,698|
|**Total funds carried forward**|**1,981**|**3,109**|**18**|**5,108**|
22
RVC Animal Care Trust
Registered Charity Number: 281571
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 (CONTINUED)**
## **12. PRIOR YEAR COMPARATIVE FIGURES FOR THE FINANCIAL STATEMENTS (CONTINUED)**
**BALANCE SHEET AS AT 31 JULY 2022**
|||**Unrestricted**|**Restricted**|**Endowment**|**2022**|
|---|---|---|---|---|---|
||**Note**|**Funds**|**Funds**|**Funds**|**Total**|
|||**£’000**|**£’000**|**£’000**|**£’000**|
|**Fixed assets**||||||
|Investments|4|655|3,109|18|3,782|
|**Current assets**||||||
|Debtors|5|492|-|-|492|
|Cash and cash equivalents||992|-|-|992|
|**Current liabilities**||||||
|Creditors: Amounts due in less than one|6|(64)|-|-|(64)|
|year||||||
|**Net current assets**||**1,420**|**-**|**-**|**1,420**|
|**Total assets less current liabilities**||**2,075**|**3,109**|**18**|**5,202**|
|Provisions for pensions liabilities|11|(94)|-|-|(94)|
|**Total net assets**||**1,981**|**3,109**|**18**|**5,108**|
|**The funds of the charity**:||||||
|Endowment funds|8|-|-|18|18|
|Restricted income funds|8|-|3,109|-|3,109|
|Unrestricted funds|9|1,981|-|-|1,981|
|**Total charity funds**||**1,981**|**3,109**|**18**|**5,108**|
23