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2020-12-31-accounts

Company Registration No. 2596548 (England and Wales) Charity No. 1002705

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

CONTENTS

Page
Legal and administrative information 1
Chairman’s Report 2
Report of the Trustees 4
Independent auditors’ report 12
Statement of financial activities 16
Balance sheet 17
Statement of cash flows 18
Notes to the financial statements 19

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

LEGAL AND ADMINISTRATIVE INFORMATION

Board of Trustees Mr J Greenwell CBE DL, Chairman (resigned April 2020) Mr J Greenwell CBE DL, Chairman (resigned April 2020)
Professor N Jackson, Chairman (appointed April 2020)
Ms J Baker
Mr D Bayliss OBE (resigned April 2020)
Mr B Cussons
Mr D Hobday
Mr S Kollamthodi (appointed September 2020)
Mr P Read
Director Mr S Gooding CB
Registered office Royal Automobile Club Foundation for Motoring Limited
89-91 Pall Mall
London
SW1Y 5HS
Company registration number 2596548
Charity number 1002705
Independent Auditors Saffery Champness LLP
71 Queen Victoria Street
London
EC4V 4BE
Bankers National Westminster Bank Plc
208 Piccadilly
London
W1A 2DG
Investment Advisors Barnett Waddingham
Cheapside House
138 Cheapside
London
EC2V 6BW
Investment Managers Investec Wealth & Investment Pictet Asset Management
2 Gresham Street Moor House
London 120 London Wall
EC2V 7QP London
EC2Y 5ET

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ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

CHAIRMAN’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

While I was pleased to be invited by the Trustees to accept appointment to become Chair of the Foundation’s Trustees from April 2020 in the event the timing proved challenging, coming as it did hard on the heels of the first full coronavirus lockdown.

It meant there was no face-to-face opportunity for me to present a formal vote of thanks to Joe Greenwell, who’s decision to stand down as Chair created this opportunity. I think it fair to say that Joe did a tremendous job as Chair, in particular to build the essential relationships throughout the automotive and motoring policy worlds on which the current effectiveness of the Foundation rests. Indeed, Joe was instrumental in bringing me on to the Foundation’s Public Policy Committee, affording me perspectives that I might otherwise not have seen, and which I hugely valued. He also led the process to appoint our current Director back in 2015 and ensure a smooth handover of the reins. I know that the Foundation team has missed him, and I can only hope that 2021 will give us the opportunity to recognise his time with the Foundation appropriately.

It similarly stalled our plans to say a similarly fond farewell to David Bayliss as a Trustee. David has long provided wise counsel to the Foundation as well as leading analysis and authoring reports. I was pleased that he agreed to stay on our Public Policy Committee, ex officio , as, in common with so many others, we moved the Committee’s meetings on-line, and we similarly look forward to having the opportunity to thank him properly for all his work later in 2021.

Meantime the work of the Foundation has carried on, and I have been impressed by the way the team was able swiftly to shift into remote working. Some projects slowed as our contacts were variously diverted and affected by the pandemic, but the Foundation’s voice has continued to be heard in the media, at on-line conferences and workshops, and in the many advisory boards and groups in which the Foundation participates, always with the aims of informing the debate on the basis of evidence and analysis, and promoting the case for more extensive interrogation of data.

There are many aspects of the work of the Foundation in 2020 that I could choose to highlight, but I shall reference just three. First, the creative way the team developed an alternative to the annual ‘Data, driven’ conference, usually hosted in Pall Mall but this year run as a ‘pick-and-mix’ of twelve short recorded sessions, reflecting interesting developments in the generation, analysis and presentation of motoring-related data. Second, the report published toward the end of the year documenting one of the team’s experiences in tackling the wonderfully scenic North Coast 500 route around Scotland’s coast by electric car – a new form of report for the Foundation, and one which genuinely brought the challenges and opportunities of electric motoring to life. And third, the regular updating of data series tracking aspects of motoring and roads performance from the price of fuel, through the take-up of electric cars, on to the analysis of motoring offences and from there to the condition of the nation’s highway bridges, in each case building a rich picture that allows trends to be traced and projections to be postulated.

The Foundation owes its ability to carry on its work to the generosity of the Royal Automobile Club, whose donation of an endowment in 1998 guarantees the Foundation’s independence. I’d like to record my thanks to my colleague Trustees Ben Cussons, Peter Read and Jo Baker for their work on our investment sub-committee to safeguard the Foundation’s future financial security, which looked anything but sound as the slide in confidence of Spring 2020 swept across the world’s financial markets, but subsequently entered far calmer and more promising waters as markets recovered and confidence in the development and application of a covid vaccine grew. Relations between the Foundation and the Club remain strong.

Thanks are also due to Dave Hobday from the RAC Motoring Services company, who’s support for the work of the Foundation has been unstinting and who has helped foster a strong spirit of co-operation between the Foundation team and his company. This is also the moment for me to thank Sujith Kollamthodi, Ricardo’s

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ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

CHAIRMAN’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Sustainable Transport Practice Director, for agreeing to join us as a Trustee in September, and bring his wealth of experience on environmental issues to bear.

And that strikes me as a good note on which to end my report – the Government’s decision to bring forward the date from which pure petrol and diesel powered cars can no longer be sold was a hugely significant move, but in its way was just one of many that mean the worlds of motoring and travel are changing, and changing rapidly, in some aspects accelerated by our experiences through successive covid-related lockdowns – so there’s much work to be done, and I look forward to the Foundation continuing to play its part in making sure that work is as wellgrounded and well-informed as possible.

Professor Neville Jackson Chairman

……………….2021

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ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees (who are directors for the purposes of Company law) are pleased to present their annual Trustees’ report together with the financial statements of the RAC Foundation for the year ended 31 December 2020. The legal and administrative information on page 1 forms part of this report.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Objectives and activities

The objective of the Foundation is to promote for the public benefit research into the environmental, economic, mobility and safety issues relating to the use of motor vehicles. In practice this means the Foundation seeks to illuminate, inform and influence the debate about roads and road use, taking the perspective of the responsible motorist, with a particular focus on affordable, safe and sustainable mobility.

The Foundation’s activities:

Our ambition is to explore, inform and promote policies that will get people where they need to be, when they need to be there, in safety, affordably, with minimum environmental impact.

In reviewing our objectives and research programme the Trustees confirm that they have regard to the Charity Commission’s guidance on public benefit and consider each year how the Foundation meets its public benefit objectives.

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ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance

Twelve months ago, we reported that 2019 had been a challenging year. It would be fair to say that 2020 has been more so, for reasons that will be well understood. Happily, despite the jittery global financial markets of Spring 2020, the Foundation did not need to draw on the Government’s furlough scheme, and at year end, as reported below, the endowment is looking reasonably healthy, while Foundation activity was bolstered by the grant support received both from the Department of Transport and from Highways England to explore the business case for a fresh approach to investigating road collisions.

Since the end of March 2020, the Foundation team has been working from home, meeting together in person only once, when government rules allowed. However, despite the difficulties, we are pleased with the way the Foundation managed to continue operating: participating on-line in events and meetings; carrying out and coordinating research; contributing to the road transport debate through the press and directly with ministers, civil servants and other stakeholders; turning one of our flagship annual events into an online seminar and thinking creatively about new formats of report, such as the ‘Electrifying Journey’ one of our colleagues documented of the highs and lows of completing the North Coast 500 route in Scotland in an electric car.

Importantly, the Foundation staff reached the end of the year in as good physical and mental health as could be hoped, given the strictures of Covid-19 and the national response to it. Where required the Foundation spent on the technology needed to support remote working and benefitted from previous investment in, and accommodation of, flexible employment which had already resulted in staff splitting their time between their homes and the office at 89-91 Pall Mall. Huge thanks are due to the IT support team in the Royal Automobile Club for their efforts to keep us connected.

That said, some of our external contractors did suffer from the health and financial impacts of the disease – which meant some projects slowed from their original timescales - though apparently, and thankfully, not to their longterm detriment. Also, as noted below in the Financial Review, as the world’s financial markets tumbled when the coronavirus pandemic resulted in widespread lockdowns and travel restrictions, the Trustees decided that the Foundation should take on no new financial commitments until markets stabilised and the future health of the endowment could be assured. Consequently we saw through the projects already underway, and issued no new commissions, save for those forming part of the Road Collision Investigation Project, which is separately grant funded.

In terms of output 2020 was busy from the start, with publications including a report on how in-car technology rather than retesting might help older drivers stay mobile for longer, and a study from one of our recentlyappointed in-house analysts highlighting the huge variation in the cost of ‘filling up’ an electric car depending on where and when it is recharged. Both pieces attracted considerable press interest, which helps in bringing our findings to the attention of those wrestling with future policy options.

Before the first lockdown we also published our now annual study of the state of the nation’s road bridges, shining a spotlight not just on their physical standard but also the money required to bring such infrastructure back up to scratch. Pleasingly we received responses to our inquiries from nearly every one of Britain’s 200-plus local highways authorities because our work was seen to be carried out in a constructive manner, not in a way which pitted driver against council. Once again the results of the study were widely reported in the national, local and specialist press, and stand as one of the few independent tests of the state of our nation’s road network – a canaryin-the-coalmine indicator of the perils should maintenance funding be further constrained.

By the time the pandemic really hit we had also commented on: the confirmation that E10 petrol would be introduced in 2021 (the basis for our reaction here being previous work we had done to assess the number of cars in the vehicle parc which were incompatible with the fuel); the Budget in which fuel duty was frozen yet again; proposals to amend VED to best encourage the take up of electric vehicles; a record number of people being sent

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ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

on speed awareness courses; and growing concern about the safety of Smart motorways, something which would become a recurring theme during the year.

As Covid-19 came to dominate not just the front pages but the media more generally we were consciously spare with what we put out, well aware that the national attention was not on motoring policy as previously thought of, but on traffic as an indicator of compliance with the lockdown and on road transport and its ability to keep the economy alive. However, as journalists realised that other stories helped make a change, if not exactly light relief, from the pandemic then we had material to feed into those editorial gaps, not least unique in-house analysis, based on MOT data, of how far new cars typically travel each year. The average is 10,377 miles but is as little as 7,490 miles for petrol cars and as much as 12,496 for diesels. For electrics it is 9,435 miles. Important numbers for those trying to assess the likely fuel consumption of the parc as it changes, of concern both for carbon and for the Treasury as fuel duty income starts to ebb away.

As a vocal and longstanding proponent of tighter regulation of the private parking industry we commented more than once on the number of tickets firms were issuing to drivers, including during the start of the pandemic, when hundreds of thousands of tickets were issued even whilst the bulk of the population were isolating at home. However, as with the bridges study mentioned above, our stance is to be a critical friend – to be constructive, hence the Foundation is proactively working with the industry to make things better and at the Ministry of Housing’s behest is helping with the job of drafting a new ministerially-sanctioned code of practice to which parking companies must adhere.

In the Summer we were pleased to promote the work of Transport for New Homes – on whose steering board we sit – highlighting the risk of making residents of a new generation of so-called ‘garden’ towns and villages car dependent. The Foundation has a track record of highlighting the downsides of building in car dependency, whilst noting the benefits that cars still bring. The key, in achieving net zero carbon and improved air quality is in part to be found in technology and in part in enabling people to choose the right mode for the right trip, whether that be a zero-tailpipe emission car, an electric micro-scooter, or a hydrogen-fuelled bus.

Moving towards the end of the year, three things in particular stand out.

First there was Andy Graham’s Driven by Information report. So much of the focus on connected and autonomous vehicles has been the prospect of driverless motoring, with the nearer term benefits available from connectivity playing something of a Cinderella role in the background, so much so that little attention had been paid to the steps that would need be taken to realise them. This piece of research takes four ‘use-cases’ and maps out in detail the full process that would need to be in place to make them a practical reality, identifies the gaps that emerge, and advocates potential solutions and work-arounds to ensure that data not only flows seamlessly between devices – cars, cameras, phones, sat navs, traffic signals etc … but allows for that data to be harvested, marshalled and put to beneficial effect.

Second, there was our Data Driven event. In a normal year this would be an in-person seminar where we bring together some of the smartest minds with an interest in the transport data field to share and discuss how the wealth of transport-related information now being generated can be best used to inform development of the policies that will ultimately make our journeys, greener and more reliable. Because of the restrictions on gatherings which were in place we turned the event into an online showcase, recording interviews and presentations with a host of experts and then making them available on our website. Of particular note was the presentation by Dr Robin Lovelace, associate professor of transport data science at the University of Leeds, explaining how the statistical programming language ‘R’ can be used to build the evidence base from which better road safety policies can be shaped, and introducing the beginner’s guide he authored for us which itself is novel in that it contains code that can simply be blocked and copied by those new to the software.

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ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

And third, we prepared for publication our annual analysis of English council parking income and profit. What made this year’s work notable was that we completed it in a matter of seconds because we employed an automated script (program) that we had been preparing through the year to take the published government data and turn it into a report complete with tables and commentary. This automation is a natural extension of the work we have previously done to produce interactive and self-updating charts in the data section of our website.

Sadly we were not able to co-host our annual Winter Reception, which we have run jointly with RAC Motoring Services and the Royal Automobile Club for many years. This is usually our opportunity to thank the many people we have worked with throughout the year. We volunteer our thanks to them, nonetheless, and hope that we’re able to see them in person in 2021.

For us at the Foundation, as with everyone else in the country, 2020 turned out to be a year of unprecedented upheaval, but it also turned out to be a year where we continued to produce a stream of innovative, well evidenced and, we believe, useful material. We are only too well aware that our ability to do so owes much to the financial stability we enjoy thanks to our endowment, and in writing this report our thoughts are with those for whom, professionally and personally, the year was far, far harder.

Future plans

Through 2020 we have learnt a great deal about how to conduct business remotely, through e-mail and a variety of on-line conferencing sites. This looks set to be an ongoing feature of life for some time to come as the world comes to terms with the existence of the coronavirus (as it has with influenza). While we hope that it will be possible to convene and host in-person events to promote informed debate and facilitate the wider dissemination of research findings, we will also explore the scope for hosting sessions on-line, whilst recognising that this is a crowded field, and many people feel they are already experiencing more than enough screen time.

We will continue to seek out fresh data sets and opportunities to make the most of our internal analytical capability and hope that financial markets continue to recover to the point where we might commission fresh external research. 2021 will also be a year where we plan to make substantial progress in pulling together the strands of the Road Collision Investigation Project.

We will continue to seek opportunities for joint working with other organisations to reach a broader audience, including professional institutions, member organisations and the higher education sector, having added membership of the Electric Vehicle Energy Task Force and the nascent Highways Sector Council to the list of forums we attend. We will continue to invest in the professional development of the Foundation staff, in particular through various on-line training opportunities and conferences.

Financial Review

The work of the Foundation is very largely funded from the return achieved on the investment of the original charitable endowment gifted by the Royal Automobile Club in 1998. This covers the salaries of the Foundation’s permanent staff, accommodation and office expenses, and provides a core budget for commissioned research and publications. The Foundation supplements this from time-to-time through joint working with other bodies and, specifically for the Road Collision Investigation Project, with a grant from the Department for Transport, and for the Road Traffic Injury Analytics project with a grant from the FIA, both made in 2018. Further grant funding for the Road Collision Investigation Project came in from Highways England in 2020. The Foundation does not raise money from the public or from its Trustees.

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ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

Consequent on the dramatic fall in global financial markets in the spring of 2020 the Trustees took the prudent decision to place an embargo on the Foundation entering into new financial commitments, and to rein back on inyear spending where possible (largely achieved as a result of our inability to host or attend in-person events).

In the Statement of Financial Activities on page 17, income from half the investment portfolio is received in the form of dividends and interest (£432,834). The rest of the investment portfolio is held in an accumulation fund where dividends etc. are reinvested. Cash withdrawn from this fund is realised through the disposal of units in the accumulation fund and is represented on the Statement of Financial Activities on page 14 as the transfer of £334,000 from the Expendable endowment to the Unrestricted reserves.

The net gain on investments in the year was £806,856 contributing to a total net movement of funds in the year of £165,055.

Expendable endowment fund

This represents the original donation in 1998 at the time the Foundation was established in its current corporate form, as adjusted for subsequent movements in investment values, investment management costs and any expenditure of the endowment. The fund can be retained as capital or disbursed at the Trustees’ discretion for any purpose within the Foundation’s objects, and at year-end 2020 was valued at £29,756,867, a gain of £322,677 over the year.

Taking one year with another, despite the turbulence in investment markets in 2020 and some continued uncertainty looking ahead, the Trustees are nevertheless content that the value of the expendable endowment is being satisfactorily maintained so as to ensure the long-term viability of the Foundation without the need to seek further charitable donations.

Restricted income fund

This represents funds given for particular purposes within the Foundation’s objects and stands at £121,120 (2019: £119,638) at the year end.

Unrestricted income fund

This represents accumulated unspent income and can be used at the Trustees’ discretion for any purpose within the Foundation’s objects and stands at £4,093,978 at year end.

Reserves and Investment policy

The Trustees’ policy is to maintain in the long term the real value of the expendable endowment fund and also to generate sufficient income to cover proposed (budgeted) expenditure in-year.

In 2017 the Trustees, on advice from the Investment Sub-Committee, re-invested the expendable endowment equally between two investment managers: Pictet and Investec Wealth. The aim, in selecting new investment management, was to spread risk in an uncertain investment climate, and to adopt a modest increase in risk appetite in order to achieve a higher return, and thus fund increased Foundation activity.

The Investment Sub-Committee monitors the fund managers’ investment performance through the year and reports to the full Trustee meeting which in turn reviews the value of the endowment and the spend profile of the Foundation budget at the regular Trustee meetings.

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ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees closely monitored the actions of the two fund managers and drew advice from Barnett Waddingham on their performance relative to the broader market through the turbulence of 2020. On balance they were satisfied that the combined investment performance of the two fund managers was sufficient to support a sustained operating budget for the Foundation through the year.

Rather than earmark a discrete reserve, the Trustees continue to take the view that short term risks to the Foundation budget can be managed by authorising an exceptional drawdown from the expendable endowment. The Foundation’s fund managers previously confirmed that they regard this as a manageable approach, consistent with the Trustees’ stated investment objectives.

It is possible that the impact of coronavirus may necessitate further action by the Trustees depending on the impact it has on the value of the endowment and income earned in 2021, which in turn will be affected by the pace of economic recovery once the various lockdown measures applied around the world are relaxed.

Structure, governance and management

Governing document

The Royal Automobile Club Foundation for Motoring Limited is a company limited by guarantee, governed by its Memorandum and Articles of Association, incorporated 28 March 1991 as amended 30 March 1999, 31 July 2000 and 27 January 2005. It is registered as a charity with the Charity Commission.

Appointment of Trustees

The Articles of Association prescribe that there shall be a minimum of five Trustees. The Trustees are then collectively responsible for the appointment and reappointment of trustees. Up to four trustee positions may be filled by nominees of the Royal Automobile Club (2) and RAC Motoring Services (2), subject to the approval of the Trustees. The Trustees may nominate one of their number to serve as Chair. The Trustees meet three times a year (April, July and November). While the Articles of Association allow for decisions to be taken on the basis of a majority vote in a quorate meeting, in practice all Trustees’ decisions have been unanimous.

At their April 2020 meeting the Trustees welcomed Professor Neville Jackson as Chair of trustees taking the place of Joe Greenwell, who was standing down – Professor Jackson having been duly elected at the November 2019 meeting. At the September meeting the Trustees voted to appoint Sujith Kollamthodi to serve as a Trustee and succeed David Bayliss who stood down as a trustee in April 2020.

With the approval of the Trustees, as cleared with the Charity Commission, the Chairman receives £30,000 fees per annum for advisory services. Also with the approval of Trustees, David Bayliss undertook remunerated research work for the Foundation, invoiced by the day at an agreed daily rate, totalling £5,250 in 2020.

The Foundation’s pay policy for staff is approved as part of the annual budget setting process in November each year. The Trustees separately consider and decide the Director’s remuneration and bonus entitlement.

The Investment Sub-Committee comprises Ben Cussons (Chair), Jo Baker and Peter Read, with the Foundation’s director as secretary, and is advised by Barnett Waddingham.

The Trustees are assisted in the discharge of their duties by a ‘Public Policy Committee’ (PPC) – comprising the Trustees and members who the Trustees have appointed in recognition of the perspectives and expertise they can offer on motoring and road policy. PPC members receive no remuneration. The PPC meets four times a year.

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ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

A system is in place to alert Trustees of the Foundation to their legal responsibilities and to ensure that they are eligible to act in such capacity. New Trustees are briefed on their roles as Trustees and asked to sign various proformas to draw their attention to their duty to comply with charity and company law and to act in the interests of the Foundation even when this may conflict with personal or other interests. Induction sessions are held to inform Trustees of the scope, objects and activities of the Foundation.

Office administration

The Foundation contracts with the Royal Automobile Club for the provision of office accommodation, IT support, payroll management and BACS. The Club also affords the Foundation the equivalent of corporate membership, through which the Foundation is able to book the Club’s conference and catering facilities, which are then recharged at the Club’s standard rates.

Risk Management

The Trustees reviewed the Foundation risk register which the Director updated and presented to each of the Trustee meetings through 2020. The register highlights five key risks and associated mitigations (reputational risk e.g. arising from challenge to the accuracy of Foundation output); staff turnover; financial viability; interruption of service e.g. IT system failure; and relevance of Foundation output.

The Foundation opened an on-line business banking account in May 2020 in order to be able to work wholly remotely, and put in place appropriate ‘dual approval’ arrangements for authorising payments either from the online bank or through the Club finance team.

Looking ahead, business continuity risk looms large as a result of coronavirus. The Foundation team is relatively well-placed to work remotely, and the analytical interrogation of data is well-suited to remote working, but there are challenges, including the fact that the team is small and the fixed-term contract of one of the analytical team ends in the Autumn of 2021.

Related parties and co-operation with other organisations

The Foundation maintains a register of potential conflicts of interest of the Trustees. No funds were held by the Foundation as a custodian trustee on behalf of others.

The Foundation has worked in partnership with various other bodies to run events during the year, including Highways UK and PA Consulting.

Despite the historical association between the Royal Automobile Club, the RAC Motoring Services Company and the Foundation – and the fact that the three seek to co-operate with each other (e.g. in sharing data and providing input to the Club’s Motoring Committee) the Trustees do not consider either the Royal Automobile Club or the RAC Motoring Services business to constitute ‘related parties’ for accounting purposes.

Trustees’ Responsibilities Statement

The Foundation Trustees (who are also the directors of the Royal Automobile Club Foundation for Motoring Limited for the purposes of company law) are responsible for preparing a Report of the Trustees and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing the financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to disclosure to our auditors

In so far as the Trustees are aware at the time of approving our Trustees’ annual report:

Auditors

A resolution to reappoint Saffery Champness LLP as auditors to the Foundation will be proposed at the Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

By order of the Board of Trustees

…………………………

Neville Jackson Chairman

……………………..2021

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ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

Opinion

We have audited the financial statements of Royal Automobile Club Foundation for Motoring Limited for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company'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. 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 course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial

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ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on pages 10 and 11, the Trustees (who are also 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 to do so.

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ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charitable company by discussions with management and updating our understanding of the sector in which the charitable company operates.

Laws and regulations of direct significance in the context of the charitable company include The Companies Act 2006, and guidance issued by the Charity Commission for England and Wales.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above 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 would become aware of it. Also, 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 or intentional misrepresentations, or through collusion.

Page 14

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

A further description of our responsibilities is available 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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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, for our audit work, for this report, or for the opinions we have formed.

Liz Hazell (Senior Statutory Auditor) For and on behalf of Saffery Champness LLP Chartered Accountants Statutory Auditors 71 Queen Victoria Street London EC4V 4BE

Date:

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

Page 15

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

STATEMENT OF FINANCIAL ACTIVITIES (incorporating the income and expenditure account) FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Income from
Investments
2
Grants
Total Income
Expenditure on:
Raising funds
Charitable activities
3
Total Expenditure
Net gain on investments
8
Net (deficit)/income for
the year
Transfers between funds
11
Net movement in funds
Reconciliation of
funds:
Total funds brought
forward
Total funds carried
forward		 Unrestricted
Funds
£
432,834
2,091
434,925
-
928,029
928,029
-
(493,104)
334,000
(159,104)
4,253,082
4,093,978		 Restricted
Funds
£
-
136,776
136,776
-
135,294
135,294
-
1,482
-
1,482
119,638
121,120		 Expendable
Endowment
£
-
-
-
150,179
-
150,179
806,856
656,677
(334,000)
322,677
29,434,190
29,756,867		 2020
Total
£
432,834
138,867
571,701
150,179
1,063,323
1,213,502
806,856
165,055
-
165,055
33,806,910
33,971,965		 2019
Total
£
571,122
-
571,122
154,595
1,283,542
1,438,137
3,134,952
2,267,937
-
2,267,937
31,538,973
33,806,910

The Statement of Financial Activities includes all gains and losses recognised in the year. All incoming resources derive from continuing activities.

The notes on pages 19 to 29 form part of these financial statements.

Page 16

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

BALANCE SHEET 31 DECEMBER 2020

Note
Fixed Assets
Tangible fixed assets
7
Investments
8
Current Assets
Debtors
9
Cash at bank and in hand
Creditors:Amounts falling due within one year
10
Net current assets
Net Assets
Funds
Unrestricted funds
11
Restricted funds
12
Expendable endowment funds
13		 2020
£
328
33,922,706		 2019
£
3,323
33,752,868
33,923,034
33,797
369,236		 33,756,191
33,018
331,103
403,033
(354,102)		 364,121
(313,402)
48,931 50,719
33,971,965
4,093,978
121,120
29,756,867		 33,806,910
4,253,082
119,638
29,434,190
33,971,965 33,806,910

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

The notes on pages 19 to 29 form part of these financial statements.

The financial statements were approved by the Trustees on 2021

……………………………………. ……………………………………. N Jackson B Cussons Chairman Trustee

Company Registration No. 2596548 (England and Wales)

Page 17

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Net cash used in operating activities
17
Cash flows from investing activities
Purchases of investments
Proceeds from disposal of investments
Change in investment cash
Investment income received
Withdrawal from endowment
Net cash from investing activities
Net increase in cash & cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at end of the year
17,18		 2020
£
(1,031,719)
(2,675,514)
3,036,081
(57,549)
432,834
334,000
1,069,852
38,133
331,103
369,236		 2019
£
(1,448,759)
(2,518,577)
2,595,423
18,778
571,122
600,000
1,266,746
(182,013)
513,116
331,103

The notes on pages 19 to 29 form part of these financial statements.

Page 18

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting convention

The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The 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 Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011.

The Foundation constitutes a public benefit entity as defined by FRS 102.

The Foundation’s operational and functional currency is pounds sterling.

Based on the value of the expendable endowment funds, the Trustees consider that there are no material uncertainties about the Foundation’s ability to continue as a going concern.

1.1. Income

Investment income is accounted for on a receivable basis.

Grants are recognised when the charity has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received and the amount can be measured reliably.

1.2. Expenditure

Expenditure is included in the Statement of Financial Activities on an accruals basis, inclusive of VAT which cannot be recovered. Costs of raising funds comprise those costs directly attributable to managing the investment portfolio and raising investment income. Other direct, support and governance costs are allocated to charitable activities as they are incurred.

1.3. Tangible fixed assets and depreciation

Items purchased are capitalised when they cost over £1,000 and have ongoing value to the Foundation.

Depreciation is provided at the following rates to write off the cost of each asset over its expected useful life:

Office equipment - 3 to 10 years

Page 19

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1.4. Investments

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

The Foundation does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the Foundation is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

1.5. Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

1.6. Funds

Expendable endowment fund (see note 13)

This represents the original donation in 1998 at the time the Foundation was set up, as adjusted for subsequent movements in investment values, investment management costs and any expenditure of the endowment. This fund can be retained as capital or used at the Trustees’ discretion for any purpose within the Foundation’s objects.

Unrestricted income fund

This represents accumulated unspent income and can be used at the Trustees’ discretion for any purpose within the Foundation’s objects.

Restricted income fund

This represents grant income received for specific projects.

1.7. Pensions

Retirement benefits to employees are funded by contributions from both the Foundation and employees, administered through the Royal Automobile Club pension scheme; a multi-employer scheme. Contributions to the scheme are on a defined contribution basis, and are charged to the Statement of Financial Activities in the year in which they are incurred.

Page 20

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1.8. Financial instruments

The Foundation has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised initially in the accounts at transaction price, including any transaction costs. At the end of each accounting period, basic financial instruments are recognised at amortised cost. For debt instruments this is calculated using the effective interest rate method.

1.9. Critical estimate and judgements and key sources of estimation uncertainty

In the application of the Foundation’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision effects both current and future periods. The Trustees consider that there are no areas of estimation uncertainty, and no critical estimates were required to prepare the financial statements.

2. Investment income 2020 2019
£ £
Dividends and interest receivable on fixed asset investments 432,551 570,559
Bank interest receivable 283 563
432,834 571,122
3. Charitable activities
3. Charitable activities
Total Total
2020 2019
£ £
Staff Costs 539,226 465,167
Direct Costs 276,927 549,990
Support Costs 241,020 262,235
Governance costs(note 4) 6,150 6,150
1,063,323 1,283,542
4. Governance costs 2020 2019
£ £
Audit fees 6,150 6,150

Page 21

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

5.
Staff costs and advisor fees		 5.
Staff costs and advisor fees		 2020
£
470,613
53,179
15,434		 2019
£
Wages and salaries 397,056
Social security costs 45,024
Employer’spension costs 23,087
539,226 465,167
Number of employees with
total remuneration between:		 2020
Number
-
2
-
1		 2019
Number
£60,000 - £69,999 1
£70,000 - £79,999 -
£160,000 - £169,999 1
£180,000 - £189,999 -

Contributions of £13,060 (2019: £7,357) were made to the group personal pension scheme on behalf of the highest paid employees.

The following trustees have been paid these amounts in respect of specialist advisor fees:

2020
2019
£
£
5,250
12,600
9,000
36,000
22,500
-
David Bayliss
Joe Greenwell
Neville Jackson

At 31 December 2020 there was £7,500 owing to Neville Jackson in respect of the above (2019: £18,000 owed to Joe Greenwell).

No expenses were either reimbursed to, or paid directly on behalf of Trustees during the year (2019: no expenses).

The key management personnel of the Foundation comprise the Trustees and the Director. The total employment benefits of the key management personnel, including any relevant pension contributions, but excluding payments made to specialist advisors noted above, were £209,522 (2019: £188,862).

Staff numbers

The average number of full-time equivalent employees during the year was made up as follows:

Director
Campaigns and research		 Director
Campaigns and research		 2020
Number
1
6		 2019
Number
Director 1
Campaigns and research 6
7 7

Page 22

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

6.
Net movement in funds for the year		 2020 2019
£ £
This is stated after charging:
Depreciation 2,995 4,560
Auditors’ remuneration - for audit 6,150 6,150
7.
Tangible fixed assets		 Office
equipment
£
Cost
At 1 January and 31 December 2020 33,698
30,375
2,995
Depreciation
Brought forward 1 January 2020
Charge foryear
Carried forward 31 December 2020 33,370
328
Net book value
as at 31 December 2020
as at 31 December 2019 3,323

Page 23

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

8.
Investments		 2020
£
33,562,730
2,675,514
(3,036,081)
806,856
(334,000)		 2020
£
33,562,730
2,675,514
(3,036,081)
806,856
(334,000)		 2019
£
31,313,540
2,518,577
(2,595,423)
3,134,952
(600,000)
Managed and unitised funds
Market value at 1 January
Additions at cost
Disposals
Investment (loss)/gains
Withdrawal from endowmentportfolio
Market value at 31 December
Investment cash		 33,675,019 33,562,730
247,687 190,138
Total Investments as at 31 December 33,922,706 33,752,868
Historical cost 29,578,643 30,639,013

All investments are carried at their fair value. The basis of fair value for quoted investments is equivalent to the market value, using the bid price.

Fixed Interest
United Kingdom
Overseas
Equities
United Kingdom
Continental Europe
North America
Japan
Far East
Global
Emerging Economies
Property
Alternatives
Cash
Total		 2020
Cost
Market
Value
£
£
2,347,269
2,368,052
306,981
314,505
4,486,895
4,952,196
672,591
973,050
2,663,519
3,579,795
348,530
392,640
577,849
893,362
493,189
569,727
288,753
352,578
1,222,455
1,253,485
15,922,925
18,025,629
247,687
247,687
29,578,643
33,922,706		 2019
Cost
Market
Value
£
£
2,313,342
2,290,331
402,620
382,680
5,230,713
6,075,983
710,564
862,935
2,494,377
3,126,329
497,633
526,758
577,849
651,965
326,501
416,198
294,140
327,600
1,434,142
1,540,650
16,166,994
17,361,301
190,138
190,138
30,639,013
33,752,868

Page 24

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

9.
Debtors		 9.
Debtors		 2020 2019
£
24,099
8,919
33,018
2019
£
313,402
313,402
£
Interest and dividends receivable 23,957
Prepayments 9,840
33,797
10.
Creditors		 2020 2019
£ £
Accruals and other creditors 354,102 313,402
354,102
11.
Unrestricted Funds		 2020 2020
Opening Income Expenditure Transfer Closing
£ £ £ £ £
Unrestricted Funds 4,253,082 434,925 (928,029) 334,000 4,093,978
2019 2019
Opening Income Expenditure Transfer Closing
£ £ £ £ £
Unrestricted Funds 4,005,140 571,122 (923,180) 600,000 4,253,082

The transfer from the expendable endowment funds represents monies drawn down from an accumulating investment fund held as part of the Foundation’s investment portfolio.

Page 25

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

12.
Restricted Funds		 2020 2020
Opening Income Expenditure Transfer Closing
£ £ £ £ £
Road Collision fund 119,638 125,000 (123,518) - 121,120
Pre-driver Theatre and
Workshopfund		 - 11,776 (11,776) - -
119,638 136,776 (135,294) - 121,120
2019 2019
Opening Income Expenditure Transfer Closing
£ £ £ £ £
Road Collision fund 480,000 - (360,362) - 119,638

The Road Collision fund represents money received to explore the business case for improving the investigation of road crashes, in particular working with volunteer police forces to revisit the material available in police records.

13.
Expendable		 2020 2020
Endowment Opening Income Expenditure Transfer Closing
Funds £ £ £ £ £
29,434,190 806,856 (150,179) (334,000) 29,756,867
2019 2019
Opening Income Expenditure Transfer Closing
£ £ £ £ £
27,053,833 3,134,952 (194,595) (600,000) 29,434,190

Page 26

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

14.
Analysis of net assets between
funds
2020 Unrestricted Restricted Endowment Total
Funds Funds Funds
£ £ £ £
Tangible fixed assets 328 - - 328
Investments 4,165,839 - 29,756,867 33,922,706
Current assets 281,913 121,120 - 403,033
Liabilities (354,102) - - (354,102)
Balance at 31 December 2020 4,093,978
121,120		 29,756,867 33,971,965
Analysis of net assets between
funds
2019 Unrestricted Restricted Endowment Total
Funds Funds Funds
£ £ £ £
Tangible fixed assets 3,322 - - 3,323
Investments 4,318,678 - 29,434,190 33,752,868
Current assets 244,483 119,638 - 364,121
Liabilities (313,402) - - (313,402)
Balance at 31 December 2019 4,253,082
119,638		 29,434,190 33,806,910

15. Related parties

There were no related party transactions except those transactions with the Trustees in note 5 above.

Page 27

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

16. Limitation of liability

Every member (being the Trustees of the Foundation) guarantees £1 in the event of the Foundation being wound up while they are a member and for the year after they cease to be a member.

17.
Reconciliation of net movement in funds to net cash flow from operating activities		 17.
Reconciliation of net movement in funds to net cash flow from operating activities		 17.
Reconciliation of net movement in funds to net cash flow from operating activities
2020 2019
£ £
Net movement in funds 165,055 2,267,937
Add back depreciation charge 2,995 4,560
Deduct investment income (432,834) (571,122)
Loss/(gain) on investments (806,856) (3,134,952)
(Increase)/decrease in debtors (779) (7,062)
Increase/(decrease)in creditors 40,700 (8,120)
Net cash used in operating activities (1,031,719) (1,448,759)
18. 18. Analysis of cash and cash equivalents Analysis of cash and cash equivalents
2020 2019
£ £
Cash at bank and in hand 369,236 331,103
369,236 331,103
18. 18. Analysis of cash and cash equivalents Analysis of cash and cash equivalents
2020 2019
£ £
Cash at bank and in hand 369,236 331,103
369,236 331,103
19.
Analysis of changes in net debt		 19.
Analysis of changes in net debt		 19.
Analysis of changes in net debt		 19.
Analysis of changes in net debt
At 1 January
2020		 Cashflows At 31 December
2020
£ £ £
Cash at bank and in hand 331,103 38,133 369,236
331,103 38,133 369,236
19.
Analysis of changes in net debt		 19.
Analysis of changes in net debt		 19.
Analysis of changes in net debt		 19.
Analysis of changes in net debt
At 1 January
2020		 Cashflows At 31 December
2020
£ £ £
Cash at bank and in hand 331,103 38,133 369,236
331,103 38,133 369,236

Page 28

ROYAL AUTOMOBILE CLUB FOUNDATION FOR MOTORING LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

20.
Comparative statement		 of financial activities of financial activities
Income from
Investments
Total Income
Expenditure on:
Raising funds
Charitable activities
Total Expenditure
Net gains on investments
Net (loss)/income for the year
Transfers between funds
Net movement in funds		 Unrestricted
Funds
£
571,122
571,122
-
923,180
923,180
-
(352,058)
600,000
247,942		 Restricted
Funds
£
-
-
-
360,362
360,362
-
(360,362)
-
(360,362)		 Expendable
Endowment
£
-
-
154,595
-
154,595
3,134,952
2,980,357
(600,000)
2,380,357		 2019
Total
£
571,122
571,122
154,595
1,283,542
1,438,137
3,134,952
2,267,937
-
2,267,937

Page 29