**Trustees’ Annual Report 2020**
Registered charity 1079358 Company registration number: 3916496 Unit 2 Sheene Road, Bedminster, Bristol BS3 4EG www.motivation.org.uk | 0117 966 0398
## **Contents**
**1. Report of the Trustees**
|**1.**|**Report of the Trustees**||
|---|---|---|
|•|Chair overview....................................................|**3**|
|•|Who we are: mission, vision, values....................|**4**|
|•|What we do........................................................|**4**|
|•|Programme priorities...........................................|**5**|
|•|Our 2020 impact..................................................|**6**|
|•|Achievements and performance..........................|**7**|
|•|Activity highlights.................................................|**7**|
|•|Fundraising highlights..........................................|**10**|
|•|Financial review...................................................|**11**|
|•|Structure, governance and management.............|**15**|
|•|Reference and administration information............|**17**|
|•|Statement of responsibilities of the Trustees........|**18**|
|**2.**|**Independent auditor’s report**|**19**|
|**3.**|**Consolidated statement of financial activities**|**22**|
## **1. Report from the Chair of trustees** Chair Overview
## **As we journeyed into a new decade, 2020 brought unprecedented challenges to the international development sector but also created renewed impetus for change too.**
With COVID-19, we saw a contraction of GDP and the deepest global recession since the Second World War, a surge in extreme poverty and entrenchment of inequality.
According to the World Bank, the pandemic is likely to push around 120 million people into extreme poverty, wiping out years of progress and turning the development clock back for even the most stable countries. Already vulnerable communities are likely to be hit hardest; women and girls, the poor, informal workers and those working in service or public sectors are likely to fall furthest behind in development indices.
And disabled people are likely to be impacted worst of all.
## Research from around the world echoed
Motivation’s own findings: that disabled people were being left behind by national and humanitarian efforts during the pandemic. Disabled people are at increased risk of mortality from COVID-19; they are most likely to suffer from national restrictions in movement; most likely to have their health services, care, medicines, or essential supplies disrupted; and most likely to experience concern or anxiety about their care or welfare.
Inevitably the prevailing environment puts additional pressure on available funding. Global commitments to the Sustainable Development Goals (SDGs) are threatened by national pressures to prioritise domestic vaccination programmes and rebuild local economies.
But there are also opportunities too in this changing environment.
2020 saw heightened awareness and debate about the institutional and structural social and racial inequalities that exist in society. We have an opportunity to galvanise the important social movements around diversity and inclusion that have emerged in the past year and help to make social exclusion everyone’s business.
At Motivation, we realised the potential of digital platforms to increase our reach, our impact and our relevance through direct engagement. We took important steps to work remotely and provide virtual services in 2020. This reinforced for us the importance of digital platforms to social and economic inclusion, and their continued importance to development beyond the pandemic and the world’s recovery from recession.
## Motivation began strengthening the teams
closest to our stakeholder community in our last strategy. Throughout the year we continued working towards localisation objectives, ensuring that we are shaped by the changing needs of our stakeholders. We have our work cut out for us in the current environment. We will work harder to create more sustainable impact, to fulfil long-standing global development goals and appeal to national imperatives.
The publication of ATscale’s The Case for Investing in Assistive Technology demonstrates how investment in products and services that allow disabled people to access opportunities and reach their potential can benefit the whole community and economy. The research found that sustained provision of assistive technology from childhood can result in an average increased lifetime income of about US$100,000. That is a 9:1 return on investment. We are incredibly grateful to ATscale and its founding partners for this important resource, especially as we advise on efforts to rebuild fully inclusive healthcare systems.
Finally, I want to thank the team for their courage, their resilience and their commitment to Motivation’s mission. I am also immensely grateful to our loyal volunteers, my fellow Trustees, our supporters and stakeholders for continuing their commitment to us and sharing our values and mission. Thank you to all of you for your understanding and flexibility, which helped us meet the changing needs of disabled people during the pandemic.
As the need for our work increases and becomes more urgent, and as the context becomes more challenging, we hope you will continue to work with us to create a world that is more inclusive for disabled people.
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
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## **Who we are**
**Our vision** is of a world in which disabled people are included and fully participate in all aspects of life.
**Our mission** is to enable greater independence and opportunity for disabled people in developing countries through the design and provision of wheelchairs, services and training.
**Our values** reflect who we are and who we aspire to be, while shaping how we conduct ourselves and treat others. At all times and across all our work we are inclusive, empowering, inventive and honest.
## **What we do**
## **Motivation is a global disability charity with a social enterprise. For more than 30 years, we have been improving access to appropriate wheelchairs in lower- and middle-income countries.**
We do this through user-focused programmes of training, outreach and advocacy alongside provision of user-centred products.
In India, Kenya, Malawi and Uganda, we work through partners to build knowledge and skills for wheelchair users, their communities and wheelchair services.
Globally, we work with international organisations to improve guidelines and standards for wheelchair design, provision and services.
Our social enterprise designs and provides low-cost, durable wheelchairs and seating products. We sell everyday mobility and sports products to organisations around the world and reinvest all profit in our charitable activities.
## **Public benefit statement**
Motivation operates for public benefit and general charitable purposes, according to the laws of England and Wales. The organisation also furthers its charitable purposes for the public benefit through its social enterprise Motivation Direct Ltd, which designs and sells mobility products. All profits from the sale of those products are fed back into our charitable activities so that we can continue to work towards our organisational goals.
The Trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing Motivation’s aims and objectives and in planning future activities.
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## **Our progamme priorities**
## **Wheelchair service training**
It is vital that clinicians know how to provide a wheelchair that suits user needs. But formal training on wheelchair assessment, fitting and prescription is lacking in many countries. Our teams upskill services to offer appropriate wheelchairs in the right way. We influence policymakers to build professional, sustainable wheelchair and community services.
## **Wheelchair provision**
Many wheelchairs provided in our programme countries are badly fitted, too heavy or impossible to repair locally. Through local partnerships we provide welldesigned, durable wheelchairs and strengthen outreach networks to improve access to them. We influence the sector to improve product design. Our low-cost, durable wheelchairs set a global example.
## **Parent and caregiver training**
Parents of disabled children often receive no diagnosis or support in our programme countries. They may be pressured by community and family to abandon their child. Our training is led by other parents who explain disability and show how to support their child’s development. This allows caregivers to see their child’s potential, often for the first time.
## **Peer training**
To build independent lives, wheelchair users need specific skills. But the majority are left without support or rehabilitation. We train peer mentors to share clinical knowledge and their own lived experiences with wheelchair users – from manoeuvrability to bowel, bladder and skincare management. These programmes also build selfconfidence and reduce isolation.
## **Design innovation**
Advances in technology allow us to find practical solutions to the barriers to disability inclusion. Whether that’s new designs to improve our products and expand our range, or new systems for increasing access to appropriate wheelchairs. We are committed to finding scalable ways to improve wheelchair services, increase choice of products and make provision sustainable.
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MOTIVATION TRUSTEES’ ANNUAL REPORT 2020
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## **Our 2020 impact**
**COVID-19 disrupted many of our usual activities throughout 2020. We pivoted quickly to assess the needs of our community and provide targeted support during the pandemic.**
**8,603 22** wheelchair wheelchair products provided services supported
**4,623** disabled people given phone call support
**250 1,439** disabled people sent people sent emergency social cash transfers food supplies
**618** people given COVID-19 resources and virtual training
**435** people sent health supplies
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## **Achievements and performance:** activity highlights
Our 2020 strategic objectives were inevitably impacted by the COVID-19 pandemic, but we flexed our activities as restrictions and responses to the crisis evolved. This section outlines how some objectives were progressed while others were pivoted rapidly to deliver new activities and meet emerging needs of disabled people in our programme countries. Some were postponed for delivery in 2021 under our new organisational strategy (see Plans for 2021, page 14).
- z Our goal to advance wheelchair design and provision was progressed with research and development for new innovation projects, as well as a roadmap for implementing learning from our 2019 Motivation InnovATe programme.
- z Influence and advocacy work alongside remote training continued to make an impact on our goal to increase access to wheelchair provision locally and globally.
- z The objective to deliver programmes in Malawi and Uganda was adapted to meet pandemic precautions, and we successfully concluded an employment programme in Kenya.
- z We made good progress on localisation plans, strengthened safeguarding and created new processes to improve programme design and delivery.
- z We increased monitoring and evaluation capacity to strengthen use of learning in new programmes.
- z We carefully managed cash flow, developed new business activity through our design team, and made use of the UK’s Coronavirus Business Interruption Loan Schemes to ensure financial sustainability in a difficult year.
## **Emergency COVID-19 response**
The COVID-19 pandemic required remote working from March 2020. Face-to-face work was made impossible due to risk of infection, so we pivoted our usual activity to support wheelchair users and their families through emergency responses, training and advocacy.
To understand the challenges faced by our programme community, and to assess their immediate needs, we carried out hundreds of phone surveys.
This confirmed our fear that disabled people were being left behind by most emergency responses, while being greatly impacted by lockdown measures:
- z More likely to work in the informal sector, many disabled people lost their income source;
- z Emergency supplies were often not accessible to wheelchair users and didn’t include vital healthcare items for disabled people;
- z Disabled people couldn’t access routine healthcare services as clinics focused on COVID-19;
- z Disabled people were at increased risk of infection, serious health implications and mortality.
Although Motivation is not a humanitarian organisation, we knew that we had to meet the most urgent needs.
In India, our team worked with local partners to safely provide food and healthcare kits. They ensured 1,439 people received dry ration kits and 435 people received health supplies, including sanitiser, face masks and continence products. This work continues in 2021.
In Kenya and Malawi, we set up social cash transfer programmes that enabled people to buy necessary supplies. We used careful selection criteria to direct these donations to the most vulnerable and reached 250 people in 2020. We continue these payments in 2021.
We made support calls to 4,623 disabled people across all our programme countries, which included guidance on wheelchair maintenance and repair. We also created disability-specific resources, such as a guide on sanitising wheelchairs.
As the pandemic persisted, we stayed in touch with partners, participants and funders remotely, so they could keep up to date with our work and continue to learn from our experts. In the UK we hosted a virtual event on disability inclusion, while in India we provided virtual training on posture care to rehabilitation professionals in ten clinics across South Asia. We ended the year with stronger stakeholder relationships, which benefitted from shared empathy, a reminder of shared values and easier and more equal international communication.
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**Achievements and performance:** activity highlights
## **Building resilient programmes**
We were due to start two new programmes in 2020: Motivation All-Stars in Uganda and Survive & Thrive in Malawi. Both were inevitably delayed by the pandemic with plans to start as soon as safely possible in 2021. We worked closely with our funders – the UK government and Comic Relief, respectively - to adapt implementation plans. All changes were made in line with guidance from the Uganda and Malawi governments as well as our own policies. We continue to add COVID-19 into our risk assessment of all face-to-face activities.
During the year we developed new programmes to rebuild wheelchair services following their closure during COVID-19. As the pandemic spread, services were halted but waiting lists continued to grow. Our new programmes in Kenya and Malawi will deliver wheelchairs to adults and children and upskill wheelchair service workers in partnership with the Church of Jesus Christ of Latter-day Saints and World Vision.
## **Strengthening our teams**
When we moved to remote work in March, we rapidly adjusted to more flexible working to promote staff wellbeing and we carried out regular surveys to check in on employee needs. Digital technology and virtual meetings removed geographical barriers, so our full global team could begin meeting weekly.
Remote working also enabled us to create a new Clinical and Technical Services working group, which combines expertise in occupational therapy, prosthetics and orthotics, physiotherapy and wheelchair technology, so that we can build new standards of clinical excellence across our work.
We built project management skills across the organisation, too, enabling stronger programme planning and implementation. This learning led to the development of new robust processes, including a project ideas pipeline and plans for a project management manual to ensure all programmes meet sector level standards.
Our journey towards localisation continued in 2020 as we invested in our teams in Africa and India, and in community engagement and advocacy. During the year we created new roles for a dedicated Head of Programmes in each region. We also hired a monitoring and evaluation expert in Uganda for the Motivation All-Stars programme. In Malawi, we
added two new members to our Board of Trustees. In the UK, we recruited three new Trustees to support our development in digital innovation, business development and public affairs. They formally joined our Board of Trustees in early 2021.
## **Designing for inclusion**
In 2020 we began developing a new disability sport product, building on our past strengths in designing low-cost, grass-roots wheelchairs. It’s an exciting opportunity to meet a rapidly developing market need in an emerging Paralympic sport. We are fundraising to complete the development in 2021. Our team started research and development on the use of digital app technology to bridge the gap between our experts and our wheelchair users. They also adapted learning from our Motivation InnovATe project to progress innovative product ideas for improving the ease and accuracy of wheelchair fitting.
Though wheelchair sports events were cancelled around the world in 2020, we identified a new product opportunity for racing wheelchair rollers to enable training at home in lockdown. Our team worked to produce a version for our own Flying Start model at an affordable price point. As with all sales of our range, profits are reinvested in our charity work.
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**Achievements and performance:** activity highlights
## **Advocating for a better future**
In 2020, David Constantine became Chair of the Founding Board of the International Society for Wheelchair Professionals (ISWP), an organisation that aims to improve the quality of, and access to, wheelchair services globally. This is an opportunity to work with other experts to promote training and research and to improve wheelchair design, manufacturing and services. David was also nominated as the new President of the International Society of Prosthetics and Orthotics (ISPO), a global, multidisciplinary network that promotes equitable access to appropriate rehabilitation and assistive technology. We look forward to working more closely with them on our shared vision as David takes on the role in 2023.
Additionally, our Technical Specialist, Chris Rushman, advised on manual wheelchair and wheelchair cushion requirements for the World Health Organization’s (WHO) Assistive Product Specifications, which was published in March 2021. This is a vital resource for anyone making decisions on wheelchair procurement and provision. Meanwhile, Patience Mutiti, Clinical Capacity Development Manager, joined the ISWP’s wheelchair educators’ package development group to determine ways to develop formal training on wheelchair provision in tertiary education.
In Kenya, we joined a disability caucus to address the gap left between COVID-19 responses and the needs of disabled people. We shared our survey findings with a task force of disabled people who advocated for inclusive government support. They engaged media to cover the challenges faced by disabled people, raising awareness of rights and creating public pressure. This resulted in government action to share targeted resources, including sanitiser for those using assistive technology and cash transfers to more than 70,000 disabled people.
Motivation staff in Kenya also joined Disabled People’s Organisations and the Clinton Health Access Initiative (CHAI) to provide crucial input to a new government wheelchair strategy. A national survey was carried out to determine the state of rehabilitation services and inform a way forward for better services throughout Kenya, where only 5% of the wheelchair needs of disabled people are being met. It will also direct resources to ensure sustainability. The draft will be validated in 2021.
In India, we continued work on a transfer of technology agreement with ALIMCO, the Government of India’s official manufacturer of assistive devices. This aims to improve the quality of the wheelchairs it produces to meet WHO standards. The first prototypes were manufactured in 2020 for inspection by our experts. Motivation India also agreed training for ALIMCO staff on WHO wheelchair service provision training, which will be delivered in 2021.
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## **Fundraising highlights**
Continued commitment from our donors has been more important than ever throughout such a challenging year. The support we received from our Survive & Recover Appeal enabled us to pivot our work, while buoying our teams with encouraging words. Our progress in securing new grants and partnerships was hampered by the global impacts of the pandemic. However, we continued to strengthen our global fundraising through new corporate and strategic partnerships.
## **Support from grants, foundations and corporates**
At the start of 2020, our Motivation All-Stars appeal raised a total of £442,205, including £216,861 of matched funding from the UK government. We were also granted £300,000 by Comic Relief to fund Survive & Thrive in Malawi.
We were grateful for funding from trusts and foundations, including: The True Colours Trust; St James Place Charitable Foundation; The Lyndal Tree Foundation; The Heathside Charitable Trust; EquallyAble Foundation; and The Church of Ireland Bishop’s Appeal. We are especially appreciative of their flexibility in funding our COVID-19 response work in Uganda and Malawi.
Our ongoing corporate partnership with Ottobock, focused on our sports wheelchairs, continues to be hugely valued in strengthening Motivation’s work. As well as offering generous financial support, Ottobock also sells some of our products through its worldwide network.
Our COVID-19 response work in India was done with the continued support of existing corporate partners NTT DATA and Adobe, and our new corporate partner Cognizant. We also welcomed Citrix R & D India PVCT Ltd as a new partner in 2020, advancing the use of digital technologies in our programme work.
We are always grateful for in-kind support received, which included employee volunteering in India from Transworld Group as well as access to CAD software by Autodesk to support our design work.
## **Support from the public**
We saw incredible generosity from many individuals in 2020, just when it was most needed. Our Survive & Recover Appeal received nearly £30,000 in donations, enabling us to provide social cash transfers, dry rations kits and healthcare supplies to disabled people and their families.
We were also supported by fundraisers taking on virtual sponsored events in 2020. A highlight was the 2.6 Challenge, which replaced the London Marathon and raised nearly £3,000 from wonderfully creative supporters, who ran, belly danced, cycled and played wheelchair basketball to support our work.
Gifts in Wills provided £37,900 of essential funding to support our core work. We are so grateful for those who remembered Motivation in their Will.
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Financial review
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## **Review of financial position**
The results for the year are set out in the statement of financial activities on page 22. The consolidated position of the charity at the end of 2020 is shown in the balance sheet on page 23.
Total income generated was £2.38 million (2019: £3.85 million) of which £2.06 million was unrestricted (2019: £2.81 million) and £0.32 million was restricted (2019: £1.04 million).
The net assets on the balance sheet are £0.61 million (2019: £1.11 million).
The principal funding sources of the charity in the reporting period were the same as in previous years:
- z trading from the sale of products via Motivation’s social enterprise, Motivation Direct Ltd;
- z fundraising, including donations, legacies and events, as well as gifts in kind;
- z grants earmarked for delivering our charitable activities and programme partnerships.
This supports the key objectives of the charity by providing income from a diverse range of sources.
The COVID-19 pandemic affected the financial performance and position of the charity during the reporting period. Income from trading activities (the sale of mobility products) through our social enterprise fell from £1.80 million in 2019 to £1.42 million in 2020. Sales of everyday mobility products comprise the bulk of sales (£0.97 million in 2020), with sales of sports wheelchairs contributing a further £0.31 million. Despite tougher trading conditions we continued to enjoy excellent relationships with existing customers and re-sellers. In addition to income from trading activities the Charity raised £0.45 million from unrestricted donations (2019: £0.75 million). Excluding legacies and gifts in kind, unrestricted donations from supporters, trusts, foundations and companies increased from £0.30 million in 2019 to £0.38 million in 2020. Gifts in kind of £0.03 million included donations of exhibition space and free consultancy services.
In direct support of our programme activity, the Charity secured £0.20 million from governments and other grant-makers including the UK Foreign, Commonwealth and Development Office, Comic Relief, and True Colours Trust. This was supplemented by £0.11 million restricted donations from supporters.
Total expenditure was £2.87 million (2019: £3.87 million) of which £2.64 million was unrestricted or designated (2019: £2.79 million) and £0.23 million was restricted (2019: £1.08 million). Note 4 to the Financial Statements shows how these funds were spent. This includes £1.52 million on running the social enterprise, including the cost of purchasing wheelchairs (2019: £1.79 million), £0.26 million on programme activity (2019: £1.21 million), and £0.33 million on fundraising (2019: £0.32 million). In addition support costs not charged to restricted programme funding were £0.75 million (2019: £0.56 million).
In order to help manage costs through the COVID-19 pandemic we made use of the UK government’s Coronavirus Job Retention Scheme with 25 staff roles being temporarily furloughed. Donors and grantors were willing to either revise the scope, scale, progress or commencement date of projects. Trading customers and suppliers were flexible and attempted to develop or retain pre-pandemic plans as far as possible. In order to provide cashflow security through the pandemic the Trustees also decided to raise financing under the government’s Coronavirus Business Interruption Loan Scheme (CBILS). We secured lending of £0.30 million for the Charity and £0.20 million for the social enterprise, with both loans repayable over four years from September 2021.
The overall result for 2020 was a deficit of £0.49 million (2019: deficit £0.02 million), comprising a deficit on the unrestricted fund of £0.55 million, a deficit on the designated fund of £0.02 million, and a surplus on restricted funds of £0.08 million. The unrestricted fund reserve at the end of the year was therefore £0.26 million, the designated fund reserve was £0.01 million, and total reserves on restricted funds were £0.35 million.
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**Financial review**
## **Reserves and reserves policy**
Motivation’s Trustees feel it is prudent to hold reserves for the following reasons:
- z to protect against fluctuations in fundraising income;
- z to ensure the continuation of Motivation’s activity in the event of unforeseen setbacks;
- z to enable the development of programmes in the event of a reduction in funding; and
- z to protect against fluctuations in contribution from the trading subsidiary.
The Trustees keep the reserves policy and the level of reserves held under constant review during the year. the Trustees have set a reserves policy with a target of three months’ total annual unrestricted expenditure on general overheads as the required level of unrestricted reserves. At the year end this target was £0.30million (2019: £0.32 million) and the actual level of unrestricted reserves was £0.25million (2019: £0.81 million). Since the end of 2020 the level of unrestricted reserves has reduced further (see Going Concern below).
An analysis of unrestricted, restricted and designated reserves comprises part of the notes to the Financial Statements. Restricted funds in deficit at the year end are in process of being resolved with funders and partners.
## **Investment policy**
The Charity has no long-term investments and its primary asset is cash in the bank. Trustees take a cautious approach towards investment adopting a short-term, low-risk policy.
## **Going concern**
The Trustees have assessed Motivation’s ability to continue as a going concern. The trustees have considered several factors when forming their conclusion as to whether the use of the going concern basis is appropriate when preparing these financial statements including a review of updated forecasts to the end of 2022, and a consideration of key risks, including COVID-19, that could negatively affect the Charity.
Our core unrestricted reserves are funded from a combination of trading income through the social enterprise, fundraising income (in the form of donations and legacies), and programme grants, a portion of which is allocated to funding the
Charity’s running costs. As noted above, the level of unrestricted reserves fell in 2020 to just below the Trustees’ reserves target, and has continued to fall, in line with expectations, in the first half of 2021. The key risks in our financial model may be summarised as a decline in income from trading sales, falls in unrestricted donations and legacies, and a fall in programme expenditure leading to lower recovery of core costs. The COVID-19 pandemic has already had a negative impact on trading sales and programme activity, and this is expected to continue in 2021 before recovering in 2022. Donations from individuals, trusts, foundations and companies have held up well in 2021 despite the pandemic, although income from legacies is by nature unpredictable.
In light of these factors the Trustees have undertaken scenario planning to assess the potential financial impact of COVID-19 on Motivation. Together with the Charity’s management the Trustees are also continuing to take measures to reduce core costs in order to mitigate the impacts.
These measures include:
- z further use of the UK government’s Coronavirus Job Retention Scheme, through which around half of UK staff have been placed on furlough at various times during 2021;
- z a small number of post closures in the UK office; and
- z removal of all non-essential expenditure from core budgets for the remainder of the year.
The scenario planning shows that under the base case financial forecast we maintain sufficient liquidity throughout the period to the end of 2022, indicating that Motivation would continue to operate without the need for further financing. Unrestricted reserves would be negative at the end of 2021 before recovering to around zero by the end of 2022 and on an upward trajectory in to 2023. Downside scenarios have also been modelled in which fundraising income and trading income are each below the base case. These show that we would be able to absorb small declines in income although larger falls, or falls across multiple income streams simultaneously, would require further mitigating actions to be taken. Options would include further reductions in core costs, or the raising of new finance.
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**Financial review**
The Trustees also note that there are also a number of opportunities which could cause Motivation to outperform the base case financial forecast. These include opportunities with new customers and products in the social enterprise, and potential funding for programme activities in India and Africa in line with our new strategy. Further details are outlined in the section below on Plans for 2021.
Whilst we have full confidence in the plans in place to rebuild reserves over the medium-to-long term, we recognise that in common with many organisations at this challenging time a material uncertainty exists which, if our multiple income streams continue to be negatively impacted over a prolonged period, may cast some doubt on the Group and Company’s ability to continue as a going concern.
The course of the pandemic remains uncertain, however, and the Trustees are mindful that the financial outlook is subject to change. Therefore, we are reviewing the financial position closely on a quarterly basis. Moreover, whilst the scenario planning does not indicate any immediate liquidity risks, if this changes then appropriate measures will be taken.
After considering these factors, the Trustees have concluded that the Charity has a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future and have continued to prepare the financial statements on the going concern basis.
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## **Plans for 2021**
Throughout Motivation’s history, our innovative products, training and services have influenced global provision of mobility products. Our programmes and wheelchairs reach thousands of disabled people and their families every year. But we are overwhelmed by the need.
Over 75 million people worldwide do not have access to an appropriate wheelchair. Disproportionate numbers of disabled people continue to face discrimination and many disabled people in the world are denied their basic human rights.
## **Our key strategic priorities are:**
**1.** Stakeholder engagement: Be systematically informed by, and accountable to, our stakeholders.
**2.** Product partnerships: Be the partner of choice for organisations and funders engaged in product design, development and supply.
**3.** Clinical, technical, and inclusion programming: Be the partner of choice for organisations and funders seeking to develop wheelchair and inclusion services.
**4.** Evidence-based approach: Gather and use evidence to demonstrate and drive impact.
**5.** Advocacy commitment: Catalyse change in policy and practice at local, national, regional and global levels.
**6.** Organisational effectiveness: Achieve the greatest impact by localising, improving efficiency and strengthening governance.
## **In 2021, our key activities will include:**
During 2020, we developed a new three-year organisational strategy that will ensure we use our resources and expertise to make the greatest possible impact. Over the next three years our goal is to drive change, so that the countries where we work offer wheelchair users the products and services they want and need.
We defined three key methods for delivering this change:
**Working with others:** Building effective, equitable partnerships to achieve more together than we do alone. We will identify strategic partners with complementary values, commitment, and expertise. We will join, or bring together, coalitions to create sustainable change.
## **Demonstrating model solutions:**
Innovating, problem solving, creating, and evidencing practical solutions that support our advocacy efforts to influence others.
- z Delivering high-impact programmes which improve inclusion for disabled people in India, Kenya, Malawi and Uganda.
- z Prototyping a digital platform for strengthened engagement with our stakeholders.
- z Prototyping a low-cost, durable wheelchair for production in Africa.
- z Developing a products pipeline for funding and development.
- z Strengthening Motivation’s clinical, technical and inclusion expertise and practice by establishing an Advisory Board and recruiting a senior Lead Clinician.
- z Developing blended face-to-face and digital training for wheelchair service provision and inclusion services.
- z Using our new Theory of Change to communicate the logic and impact of our work.
- z Developing a framework to measure, evaluate and learn from the wellbeing outcomes of our programme activity.
- z Developing a gender mainstreaming strategy, which addresses inequalities in wheelchair provision and in other disability inclusion programming.
- z Using core indicators and data collection tools to strengthen our evidence and learning and to improve our project design, implementation and impact,
- z Amplifying stakeholder voices and share learning to increase our impact and influence.
- z Developing our brand and digital communications to increase our profile as an influencer.
- z Strengthening governance and extending global Trustee engagement
- z Supporting staff wellbeing.
## **Amplifying user voices:**
Recognising that disabled people determine and direct the change they want to see, we will provide a platform for their voices to be heard.
- z Benchmarking and creating a strategy to enhance our diversity and inclusivity.
Motivation emerged from 2020 as a stronger, more inclusive team ready to tackle the inevitable challenges of a slow global recovery. In 2021 and beyond, as the world focuses on rebuilding resilient and inclusive healthcare infrastructure, we are committed to improving and strengthening wheelchair provision for future generations.
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## **Structure, governance and management**
The Charity is a company limited by guarantee and not having a share capital. It operates under the terms of its Articles of Association, as amended by Special Resolution on 31 January 2019. Copies are filed with Companies House and the Charity Commission.
## **Trustees**
In 2020 the Board of Trustees consisted of five members who met at least four times a year. We recruited three new Trustees to join from March 2021. The Board contributes specialist knowledge from their fields of expertise, including global development, disability, design, finance, sport and commercial management.
Trustees are recruited by the Board based on a skills audit to identify the qualities and skills that are needed A bespoke induction programme is delivered to all new Trustees by the Chief Executive Officer (CEO), Senior Leaders and existing Trustees. Trustees may request training through the Company/Charity Secretary, who will also notify the Trustees of relevant courses. However, standard practice is that the Company/Charity Secretary attends relevant training courses and then reports to the Trustees on key issues.
The Board of Trustees is responsible for overseeing the governance of the organisation whilst the CEO is responsible for ensuring that the organisation continues to develop and grow in line with the objects of the charity and its strategic plan.
## **Chief Executive Officer**
Day to day responsibility for the management of Motivation lies with Amanda Wilkinson, the CEO, reporting directly to the Board of Trustees and responsible for implementing the Board’s policy decisions. The CEO provides leadership and direction in Motivation’s efforts to deliver on its mission alongside the Senior Management Team.
## **Founder Director**
## **Pay policy for senior staff**
All Trustees give of their time freely and no Trustee received remuneration in the year. Details of Trustee expenses and related party transactions are disclosed in Note 6 to the Financial Statements. The pay of senior staff is reviewed annually.
## **Staff**
Motivation employed 56 staff across three regional offices in 2020, with 29 in the UK payroll and 27 working across the African and South Asian regions.
## **Volunteers**
In 2020, we received ongoing support from numerous volunteers in Africa, India and the UK. From administration to peer training, the time and hard work of our volunteers is invaluable and directly helps Motivation to achieve its activities.
## **Equality, diversity and inclusion**
We are working to champion diversity and inclusion across Motivation. We acknowledge how the global development sector is challenging itself and working hard to ensure greater equality. We recognise our role in responding to those challenges and we are committed to doing more to live out our values and to make all staff feel proud of Motivation as a diverse, inclusive employer.
In 2020, we undertook a series of measures to kick-start this journey of self-improvement. As well as making changes to our governance and management structures, we reviewed our language and the way we communicate. We have started to measure and benchmark the diversity of our workforce and our governance.
We aim to reduce any barriers to join our team, to offer an accessible workplace and to ensure no discrimination exists in our policies, processes or culture.
David Constantine MBE is one of the founders of Motivation. His is an ambassador and advocate for Motivation and for the sector. He sits on the boards of international disability and development organisations and consortia, where he advises on the importance of appropriate wheelchair provision.
We are committed to ensuring new opportunities strengthen diversity, especially welcoming people from under-represented groups to Motivation. We aim to hold ourselves accountable by tracking progress and continually learning about ways to improve. This includes the implementation of transparent policies, practices and procedures, as well as meeting our duties under the UK’s Equality Act 2010.
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**15**
**Structure, governance and management**
## **Risk management**
Motivation regularly assesses and minimises the risks that might arise through our work. Senior management and programme staff take responsibility for identifying and managing risks across all operations. Identified risks are held in organisational and activity risk registers. The probability and potential impact of each risk is ranked. Mitigating actions are taken wherever possible. A monthly review of organisational risk status and actions is undertaken in our Senior Management Team meetings and at every Board meeting. Our policy for building our financial reserves reflects our approach to risk identification and management.
In 2020, we rapidly assessed each risk arising from the pandemic and adapted our programme and office work accordingly. The principal financial risks to Motivation relate to the uncertainties of future income streams and subsequent cash flow and reserves. To mitigate this risk, the Trustees are continually looking at diversifying income streams and bringing in additional sources of income through trading, institutional grants and donations from trusts, major donors and corporates. Additionally in 2020 the Trustees decided to address the cash flow risk by raising finance under the government’s CBILS loan scheme. Over the longer term achieving the reserves target also significantly reduces this financial risk.
## **Safeguarding**
Safeguarding is an expression of our values and a commitment to all our people, communities, partners and staff. In 2020, we updated our policies on safeguarding, whistleblowing, storytelling and consent, anti-harassment and bullying, as well as our Code of Conduct. All staff received an induction on these new policies and their role in reporting. We also set up a new online form to facilitate anonymous reports.Existing projects take a proactive approach to safeguarding from design and budgeting to implementation; for example, using local consultants to deliver training. In 2020, we began planning a country-by-country safeguarding approach, developing a safeguarding specific risk register, building safeguarding sign-off into our project pipeline tool and rolling out annual refresher training for staff.
We ensure that all partnerships with local organisations comply with our policies and best practice, through our partnership assessment tool and our Memorandum of Understanding.Our work in 2020 led to an increase of safeguarding reports, therefore improved our ability to investigate and intervene. We can always do better, so our systems and processes are always under review as we deepen our ‘if in doubt, report’ culture. This
work is led by Motivation’s CEO and overseen by the Chair of the Board of Trustees, both of whom have experience of safeguarding practices in the UK disability and child services sectors. In 2020, we additionally designated a safeguarding lead, a Senior Management Team lead and convened an internal focal point group to continue steering our future approach.
## **Fundraising governance**
The Board of Trustees ensures that our fundraising is guided by our values and that activities comply with legal and regulatory frameworks. Each year, we undertake a range of fundraising activities as detailed above. In 2020, all our fundraising activities were carried out in-house. We did not partner with any professional fundraisers or commercial participators.Motivation is registered with the Fundraising Regulator and we adhere to the Code of Fundraising Practice. We ensure fundraising activity is carried out in line with charity law and all relevant legislation, including General Data Protection Regulation and Privacy and Electronic Communications Regulations. We collect and use personal information only for the purpose it was attended and outlined in a clear Privacy Notice signposted in fundraising communications.
Our fundraising complaints process is published on our website. Last year we sent out 17,659 individual communications via post and email and received no complaints. Our Supporter Promise outlines what we do to protect vulnerable people and to ensure that any fundraising activity does not cause unreasonable pressure or impact on a person’s privacy. Wherever we receive funds, we use these according to donor wishes either for unrestricted purposes or earmarked to specific programmes or activities. Motivation complies with contractual arrangements with donors and has robust internal systems to ensure we meet reporting requirements and private commitments. Some donors may request anonymity, which we always respect.
## **Subsidiary Trading Company**
Motivation Direct Limited is a wholly owned trading subsidiary undertaking that is fully consolidated within the parent charitable company’s financial statements. The principal reason for investing in a trading subsidiary is to generate profits that will be donated to the charity to use in furtherance of its charitable objective.
## **Statement of compliance**
As detailed in this report, the Directors have complied with their duty to have regard to the matters in Section 172(1) of the Companies Act 2006.
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**16**
## **Reference and administration information**
Motivation Charitable Trust, a private company, limited by guarantee and not having share capital, incorporated and registered in England & Wales, UK, known by the abbreviated name “Motivation” and headquartered in Bristol in the UK. It’s company registration number is 3916496 and it’s charity number is 1079358. It operates two overseas regional offices in Kenya and India and is currently also operating in Malawi and Uganda. It has two wholly owned and separately incorporated trading subsidiaries, one in the UK and one in India.
**Address of principal office** Unit 2 Sheene Road, Bedminster, Bristol, BS3 4EG
## **Trustees**
Trustees who served during the year and up to the date of signing the financial statements:
Richard Hawkes OBE (Chair) Prue Bramwell-Davis Jen Browning Nigel Daniel David Green (appointed 10 February 2021) Stephen Lightbown (appointed 10 February 2021) Iffat Zafar (appointed 10 February 2021) Scott Roy (resigned 25 February 2021)
**Chief Executive Officer** Amanda Wilkinson
## **Founder Director**
David Constantine MBE
## **Company and Charity Secretary**
Richard Churchill (Resigned 23 April 2021)
## **Key Management Personnel**
Amanda Wilkinson (Chief Executive Officer) David Constantine MBE (Founder Director) Biju Mathew (Regional Director, South Asia) Peter Mbuguah (Regional Director, East Africa) Richard Churchill (Head of Finance & Compliance, resigned 23 April 2021) Giles Totterdell (Head of Finance & Compliance, appointed 6 April 2021) Vickie Wood (Head of Fundraising & Communications) Sara Gwynn (Head of Programme Transition) Tony Rush (Business Development Director)
## **Our advisers**
Auditors: Mazars LLP, 90 Victoria Street, Bristol, BS1 6DP Bankers: National Westminster, 9 The Triangle, Clevedon, Bristol, BS21 6NE Legal Advisors: Various engaged as required Insurers: Sutton Winson, Greenacre Court, Station Road, Burgess Hill, RH15 9DS
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**17**
## **Statement of responsibilities of the Trustees**
The Trustees are required to prepare an annual report and financial statements for each financial year in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. The Trustees are also required to prepare financial statements which give a true and fair view of the state of affairs of the Charity and the incoming resources and application of resources, including the net income or expenditure, of the charity for the year. In preparing those financial statements the Trustees are required to:
- z Select suitable accounting policies and apply them consistently;
- z Make judgements and estimates that are reasonable and prudent;
- z State whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and
- z Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for the maintenance and integrity of the corporate and financial 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.
The Trustees confirm that to the best of their knowledge there is no information relevant to the audit of which the auditors are unaware. The Trustees also confirm that they have taken all necessary steps to ensure that they are aware of all relevant audit information and that this information has been communicated to the auditors.
Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up. The total number of such guarantees at 31 December 2020 was 5 (2019: 5). The Trustees are members of the Charity but this entitles them only to voting rights. The Trustees have no beneficial interest in the Charity. The Directors have prepared this report in accordance with the provisions applicable to companies subject to the small companies’ regime.
The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Approved by the Trustees on 28th September 2021 and signed on their behalf by:**
Richard Hawkes OBE Chair of the Trustees
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**18**
## **2. Independent auditor’s report**
## _Opinion_
We have audited the financial statements of The Motivation Charitable Trust (the ‘parent charity’) and its subsidiary (the ‘group’) for the year ended 31 December 2020 which comprise the consolidated statement of financial activities, group and charity balance sheets, consolidated 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
- z In our opinion, the financial statements:
- z give a true and fair view of the state of the group’s, and of the parent charity’s affairs as at 31 December 2020 and of the group’s income and expenditure for the year then ended;
- z have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- z have been prepared in accordance with the requirements of the Companies Act 2006.
## _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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## _Material uncertainty related to going concern_
We draw attention to note 1b in the financial statements, which notes that the ongoing Covid-19 pandemic, that resulted in a significant decline in income from trading sales, falls in unrestricted donations and legacies, and a fall in programme expenditure leading to lower recovery of core costs for the Group in 2020, has continued into 2021 with the Trustees only expecting a recovery in 2022.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. As stated in note 1b, these events or conditions, along with the other matters as set forth in the Trustees’ Annual Report, indicate that a material uncertainty exists that may cast significant doubt on the Group and Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
## _Other information_
The other information comprises the information included in the Trustees’ Annual Report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 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.
_Opinions on other matters prescribed by the Companies Act 2006_
In our opinion, based on the work undertaken in the course of the audit:
- z the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- z the Trustees’ Annual Report have been prepared in accordance with applicable legal requirements.
**MOTIVATION** TRUSTEES ANNUAL REPORT _2020_
**19**
**Independent auditor’s report**
## _Matters on which we are required to report by exception_
In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report. We have nothing to report in respect of the following matters in relation to which the
Companies Act 2006 requires us to report to you if, in our opinion:
- z adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- z the financial statements are not in agreement with the accounting records and returns; or
- z certain disclosures of Trustees’ remuneration specified by law are not made; or
- z we have not received all the information and explanations we require for our audit.
- z the Trustees were not entitled to take advantage of the small companies’ exemption in preparing the Trustees’ Annual Report and from the requirement to prepare a Strategic Report.
## _Responsibilities of Trustees_
As explained more fully in the Trustees’ Responsibilities Statement set out on page 18, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the Group’s and Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
_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 the financial statements.
Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the charity and its industry, we identified that the principal risks of non-compliance with laws and regulations related to pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19, incorrect allocation of funds between restricted and unrestricted, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and the Charities SORP.
We evaluated the Trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, and significant one-off or unusual transactions.
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:
- z Discussing with the Trustees and management their policies and procedures regarding compliance with laws and regulations;
- z Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of noncompliance throughout our audit; and
- z Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud.
**MOTIVATION** TRUSTEES ANNUAL REPORT _2020_
**20**
**Independent auditor’s report**
Our audit procedures in relation to fraud included but were not limited to:
- z Making enquiries of the Trustees and management on whether they had knowledge of any actual, suspected or alleged fraud;
- z Gaining an understanding of the internal controls established to mitigate risks related to fraud;
- z Discussing amongst the engagement team the risks of fraud; and
- z Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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 the audit report_
This report is made solely to the charity’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 charity’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 charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.
Richard Bott (Senior Statutory Auditor) for and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor
90 Victoria Street Bristol, BS1 6DP 29 September 2021
**MOTIVATION** TRUSTEES ANNUAL REPORT _2020_
**21**
## **3. Consolidated statement of financial activities**
For the year ended 31 December 2020
|Note
**Income and**
**endowments from:**
Donations and legacies
2
Charitable activities
3
**Other trading activities**
Sale of mobility
products
Other trading activities
**Investment income**
Bank interest
**Other income**
Foreign exchange gain
**Total**
**Expenditure on:**
**Raising funds**
Cost of generating
voluntary income
Cost of mobility
products
Charitable activities
**Total resources**
**expended**
4
**Net income/**
**(expenditure) before**
**transfers**
Transfers between
funds
Net movement in fund
Total funds brought
forward
**Total funds carried**
**forward**|**Unrestricted**
**Restricted**
**Designated**
**2020**
**Total**
**£**
**£**
**£**
**£**
**447,490**
**111,677**
**93**
**559,260**
**-**
**201,599**
**-**
**201,599**
**1,423,634**
**-**
**-**
**1,423,634**
**185,175**
**8,933**
**-**
**194,108**
**3,109**
**-**
**-**
**3,109**
**-**
**-**
**-**
**-**
**2,059,408**
**322,209**
**93**
**2,381,710**
**634,074**
**-**
**-**
**634,074**
**1,524,691**
**-**
**-**
**1,524,691**
**456,641**
**233,350**
**23,920**
**713,911**|**Unrestricted**
**Restricted**
**Designated**
**2019 Total**
**£**
**£**
**£**
**£**|
|---|---|---|
|||752,498
213,822
-
966,320
771,102
-
771,102
1,799,240
-
-
1,799,240
247,792
56,948
2,679
307,419
7,098
-
-
7,098
-
-
-
-|
|||2,806,628
1,041,872
2,679
3,851,179|
|||539,432
-
-
539,432
1,785,858
-
-
1,785,858
426,814
1,083,615
33,035
1,543,464|
||**2,615,406**
**233,350**
**23,920**
**2,872,676**|2,752,104
1,083,615
33,035
3,868,754|
||**(555,998)**
**88,859**
**(23,827)**
**(490,966)**
**4,283**
**(4,283)**
**-**
**-**
**(551,715)**
**84,576**
**(23,827)**
**(490,966)**
**808,076**
**265,350**
**32,247**
**1,105,673**
**256,361**
**349,926**
**8,420**
**614,707**|54,524
(41,743)
(30,356)
(17,575)
125,988
(125,988)
-
-|
|||180,512
(167,731)
(30,356)
(17,575)
627,564
433,081
62,603
1,123,248|
|||808,076
265,350
32,247
1,105,673|
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 20 of the Financial Statements.
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**22**
## **Balance sheet**
As at 31 December 2020
|Note
**Fixed assets**
Intangible fxed assets
10
Tangible fxed assets
11
Investments
12
**Current assets**
Debtors
13
Stock
Cash and bank and in hand
**Liabilities**
Creditors: amounts falling due within one year
14
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling due after more than
one year
15
**Net assets**
17
**Funds**
20
Restricted funds
Unrestricted funds
Designated funds
General funds
**Total charity funds**|**Group**
**2020**
2019
**£**
£
**9,295**
24,849
**169,250**
192,810
**-**
1
**178,545**
217,660
**257,144**
279,822
**5,675**
11,977
**974,715**
861,657
**1,237,534**
1,153,455
**(345,899)**
(265,440)
**891,635**
888,014
**1,070,181**
1,105,673
**(455,474)**
-
**614,707**
1,105,673
**349,925**
265,350
**8,420**
32,247
**256,362**
808,076
**614,707**
1,105,673|**Charity**|
|---|---|---|
|||**2020**
2019
**£**
£
**9,295**
24,849
**169,250**
192.808
**1**
1|
|||**178,546**
217,658|
|||**397,728**
174,275
**-**
-
**473,408**
679,936|
|||**871,136**
854,211
**(57,075)**
(256,555)|
|||**814,061**
597,656|
|||**992,606**
815,314
**(273,161)**
-|
|||**719,445**
815,314|
|||**349,925**
265,350
**8,420**
32,247
**361,100**
517,716|
|||**719,445**
815,313|
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. Approved by the Trustees on 28th September 2021 and signed on their behalf by
Richard Hawkes Chair of the Trustees
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**23**
## **Statement of cash flows**
|**Statement of cash fows**|||
|---|---|---|
|Note
**Net cash provided by operating activities**
19
**Cash fows from investing activities**
Interest
Purchase of plant, property and equipment
**Cash (used in) / provided by investing activities**
**Cash fows from fnancing activities**
Drawdown of borrowing facilities
**Cash provided by fnancing activities**
**Change in cash and cash equivalents in the year**
**Cash and cash equivalents at the beginning of the year**
**Cash and cash equivalents at the end of the year**|**Group**||
||**2020**
**£**
**(386,583)**
**3,109**
**(3,467)**
**(358)**
**500,000**
**500,000**
**113,059**
**861,656**
**974,715**|2019
£|
|||133,308
7,098
(4,059)|
|||3,039
-|
|||-|
|||136,347|
|||682,126
861,657|
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**24**
## **Notes to the financial statements**
**Statutory information:** The Motivation Charitable Trust is a private charitable company limited by guarantee, registered in England and Wales. The company’s registered number and registered office address can be found on the company information page.
## **1. Accounting policies**
Functional and presentation currency: The company’s functional and presentation currency is pound sterling (£).
## _**a) Accounting conventions**_
The consolidated financial statements have been prepared in accordance with applicable accounting standards. They follow the recommendations in the 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) (effective 1 January 2015) Charities SORP (FRS 102), and the Companies Act 2006.
The consolidated financial statements incorporate the financial statements of the company and its subsidiary for the year to 31 December 2020. As permitted by s408 Companies Act 2006 a separate profit and loss account dealing with the results of the parent company has not been presented. The result of the parent company for the year was a deficit of £95,868 (2019: £313,609 deficit); this includes £294,042 gift aided from the subsidiary which relates to the previous year’s surplus. The trust constitutes a public benefit entity as defined by FRS 102.
## _**b) Going concern**_
The trustees have assessed Motivation’s ability to continue as a going concern. The trustees have considered several factors when forming their conclusion as to whether the use of the going concern basis is appropriate when preparing these financial statements including a review of updated forecasts to the end of 2022, and a consideration of key risks, including COVID-19, that could negatively affect the Charity.
Our core unrestricted reserves are funded from a combination of trading income through the social enterprise, fundraising income (in the form of donations and legacies), and programme grants, a portion of which is allocated to funding the Charity’s running costs. As noted above, the level of unrestricted reserves fell in 2020 to just below the
Trustees’ reserves target, and has continued to fall, in line with expectations, in the first half of 2021. The key risks in our financial model may be summarised as a decline in income from trading sales, falls in unrestricted donations and legacies, and a fall in programme expenditure leading to lower recovery of core costs. The COVID-19 pandemic has already had a negative impact on trading sales and programme activity, and this is expected to continue in 2021 before recovering in 2022. Donations from individuals, trusts, foundations and companies have held up well in 2021 despite the pandemic, although income from legacies is by nature unpredictable.
In light of these factors the Trustees have undertaken scenario planning to assess the potential financial impact of COVID-19 on Motivation. Together with the Charity’s management the Trustees are also continuing to take measures to reduce core costs in order to mitigate the impacts.
These measures include:
- z further use of the UK government’s Coronavirus Job Retention Scheme, through which around half of UK staff have been placed on furlough at various times during 2021;
- z a small number of post closures in the UK office; and
- z removal of all non-essential expenditure from core budgets for the remainder of the year.
The scenario planning shows that under the base case financial forecast we maintain sufficient liquidity throughout the period to the end of 2022, indicating that Motivation would continue to operate without the need for further financing. Unrestricted reserves would be negative at the end of 2021 before recovering to around zero by the end of 2022 and on an upward trajectory in to 2023. Downside scenarios have also been modelled in which fundraising income and trading income are each below the base case. These show that we would be able to absorb small declines in income although larger falls, or falls across multiple income streams simultaneously, would require further mitigating actions to be taken. Options would include further reductions in core costs, or the raising of new finance.
The Trustees also note that there are also a number of opportunities which could cause Motivation to outperform the base case financial forecast. These include opportunities with new customers and products in the social enterprise, and potential
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**25**
**Notes to the financial statements**
funding for programme activities in India and Africa in line with our new strategy. Further details are outlined in the section on “Plans for 2021”. Whilst we have full confidence in the plans in place to rebuild reserves over the medium-to-long term, we recognise that in common with many organisations at this challenging time a material uncertainty exists which, if our multiple income streams continue to be negatively impacted over a prolonged period, may cast some doubt on the Group and Company’s ability to continue as a going concern.
The course of the pandemic remains uncertain, however, and the trustees are mindful that the financial outlook is subject to change. Therefore, they are reviewing the financial position closely on a quarterly basis. Moreover, whilst the scenario planning does not indicate any immediate liquidity risks, if this changes then appropriate measures will be taken.
After considering these factors, the trustees have concluded that the Charity has a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future and have continued to prepare the financial statements on the going concern basis.
## _**c) Incoming resources**_
All income is included in full in the Statement of Financial Activities when the charity has entitlement to the funds, any performance conditions have been met, it is probable that the income will be received and the amount can be measured accurately. Income is deferred if it has been received but relates to a specific future period or is dependent upon conditions to be fulfilled by the charity.
i) Income from government and other grants whether ‘capital’ or ‘revenue’ is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
ii) Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and the economic benefit can be measured reliably.
iii) Entitlement for legacies is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made or; when a distribution is received from the
estate. Receipt of a legacy in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of executor’s intention to make a distribution.
## _**d) Funds accounting**_
i) Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.
ii) Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes. Any accumulated surplus remains in General funds to be used at the discretion of the Trustees in pursuing the charity’s objectives.
iii) Designated funds are unrestricted funds earmarked by the Trustees for particular purposes. Such funds are set aside when income is recognised.
## _**e) Resources expended**_
Resources expended are recognised in the period in which they are incurred. Resources expended include attributable VAT which cannot be recovered.
i) Staff costs are allocated to activities on the basis of staff time spent on those activities.
ii) Administrative overheads are allocated to charitable activities according to funder specifications. Remaining overheads are split between support and management activities on the basis of staff time incurred.
iii) Project costs incurred overseas are included under appropriate headings in the resources expended.
iv) All organisations to which grants are made are approved by the Trustees. Grants payable are accrued in the financial statements on the basis of periodic monitoring reports supplied by the grant recipient.
v) Resources expended are allocated to a particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function is apportioned on the basis of staff time attributable to each activity.
## _**f) Costs of generating voluntary income**_
These relate to the costs incurred by the charitable company in raising both restricted and unrestricted funds for the charitable work and include salaries, direct expenditure and overhead costs of direct fundraising staff.
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**26**
**Notes to the financial statements**
## _**g) Costs of mobility products**_
These costs relate to the costs of goods sold by the trading subsidiary, Motivation Direct Limited.
## _**h) Support costs**_
These relate to costs incurred by staff directly providing support to project work. Costs are allocated on the basis of staff time incurred and proportion of overhead expenses.
Charity Support costs are re-allocated to each of the activities on the following basis which is an estimate, based on charity staff time, of the amount attributable to each activity:
|
estimate, based on charity staff time,
attributable to each activity:|
of the amount|
|---|---|
|Cost of generating voluntary income|39.9%|
|Charitable activities|60.1%|
|Other|0.0%|
## _**i) Material uncertainties and judgements**_
The preparation of the financial statements requires management to make some judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenditure. However, the nature of estimation means that actual outcomes could differ from those estimates. No significant judgements or estimates have had to be made by management in preparing these financial statements.
## _**j) Intangible fixed assets**_
Amortisation is provided on all intangible fixed assets at rates calculated to write off the cost over it’s useful life. The rates in use are as follows:
Computer software 20% straight line
_**k) Tangible fixed assets**_ UK expenditure on fixed assets is capitalised where it exceeds £500. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost of each asset over its expected useful life. The depreciation rates in use are as follows:
|Offce furniture and equipment
Leasehold improvements|25% straight line
10% straight line|
|---|---|
|Computer equipment|20% straight line|
|Website|33% straight line|
|Tooling|25% straight line|
|Motor vehicles|20% straight line|
## _**l) Stock**_
Stocks are valued at the lower of cost and net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.
## _**m) Debtors**_
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid in respect of future periods.
## _**n) Cash at bank and in hand**_
Cash at bank and in hand includes cash and any short term highly liquid investments.
## _**o) Pension contributions**_
The charitable company makes contributions on behalf of its employees into their personal pension funds. The amounts charged in the Statement of Financial Activities represent the contributions payable to the funds in respect of the accounting period. Outstanding pension contributions at the year end are included in creditors.
## _**p) Foreign currency transactions**_
Transactions denominated in foreign currencies are translated into UK sterling at the average rate of exchange for the month of the transaction. Assets and liabilities in foreign currencies are translated into UK sterling at rates of exchange ruling at the end of the financial year. All exchange differences are dealt with in the Statement of Financial Activities.
## _**q) Liabilities**_
Liabilities are recognised when a future obligation resulting in the outflow of funds arises which can be measured reliably. Liabilities are disclosed but not recognised if conditions have to be met before payment is made. When future outflow is probable, but not contractual, and measurable with sufficient accuracy a provision is recognised.
## _**r) Termination benefits**_
The charity recognises termination payments as a liability and an expense when it is demonstrably committed to terminate the employment of an employee or group of employees before the normal retirement date.
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**27**
## **2. Donations and legacies**
|Donations
Gifts in kind
(see note 9)
Legacies
Total|**Unrestricted**
**Restricted**
**Designated**
**2020**
**Total**
**£**
**£**
**£**
**£**
**377,308**
**111,677**
**93**
**489,078**
**32,520**
**-**
**-**
**32,520**
**37,662**
**-**
**-**
**37,662**
**447,490**
**111,677**
**93**
**559,260**|Unrestricted
Restricted
Designated
2019
Total
£
£
£
£|
|---|---|---|
|||302,424
96,955
-
399,379
35,113
116,867
-
151,980
414,961
-
-
414,961|
|||752,498
213,822
-
966,320|
Donations and gifts of £10,000 and over were received from the following trusts, foundations and companies:
**Restricted Unrestricted** The Church of Ireland Heathside Charitable Trust Bishops’ Appeal The Lyndal Tree Foundation The Patrick & Helena Ottobock Frost Foundation Ottobock
Donations have not been disclosed from those donors wishing to remain anonymous. There were no donations from trustees (2019: nil).
## **3. Incoming resources from charitable activities**
|Survive and Thrive
Survival and inclusion of disabled children in Uganda
Ready, Willing and Able - Kenya
Kenya Covid
Improving mobility in Kenya (further development of Access
Kenya)
Revolution in Wheelchair Provision (AT2030)
It Takes a Village to Raise a Child - Uganda
Uganda Covid
Health, education, participation of children with CP in N
India
Shoe making - Google Impact Challenge: Disability
Rebuilding Lives, Growing Livelihoods (Tanzania)
Supporting the survival and inclusion of disabled children in
Malawi
Empowering people with disabilities in Kenya
India Covid
Malawi Covid
It Takes a Village to Raise a Child - Uganda
It Takes a Village to Raise a Child - Uganda
Uganda Covid
**Restricted income: Grants**
Comic Relief
DFID (GPAF)
DFID (UKAM)
Equally Able Foundation
Ethical Giving
GDIH
Anonymous Trust
Anonymous Trust
Johanniter International
Leprosy Mission Trust, India
NLCF Big Lottery Fund
Norwegian Assoc. of Disabled
Pro Victimis Foundation
Rathbone Trust
Rathbone Trust
Rees-Jones Foundation
St. James Place Charitable Fdn.
St. James Place Charitable Fdn.
True Colours Trust
Supporting the survival and inclusion of disabled children in
Malawi|**2020 Total**
**£**
**58,905**
**-**
**35,443**
**19,264**
**-**
**-**
**10,000**
**10,000**
**-**
**-**
**146**
**-**
**-**
**500**
**500**
**-**
**5,000**
**5,000**
**56,841**
**201,599**|2019 Total
£|
|---|---|---|
|||-
1,698
123,178
-
1,500
336,714
20,000
-
(7,449)
(8,216)
162,719
17,559
4,450
-
-
65,709
-
-
53,240|
|||771,102|
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**28**
## **4. Total resources expended**
|Grants, products and materials
(note 8)
Cost of products sold
Staff costs (note 6)
Other staff costs
Consultancy
Legal and professional fees
MDL overheads
Travel and transportation
Fundraising and publicity
Offce resources
Depreciation
Finance costs
Foreign exchange gains/losses
Sundry expenditure
Total resources expended
Support costs
Total resources expended
Grants, products and materials
(note 8)
Cost of products sold
Staff costs (note 6)
Other staff costs
Consultancy
Legal and professional fees
MDL overheads
Travel and transportation
Fundraising and publicity
Offce resources
Depreciation
Finance costs
Foreign exchange gains/losses
Sundry expenditure
Total resources expended
Support costs
Total resources expended|Cost of
generating
voluntary
income
Trading costs
Charitable
activities
Governance
and support
costs
**2020 Total**
£
£
£
£
**£**|
|---|---|
||55
-
41,796
45,367
**87,217**
-
979,313
-
-
**979,313**
278,105
413,853
130,369
469,860
**1,292,188**
1,364
-
1,925
34,166
**37,454**
15,843
11,332
21,124
65,305
**113,604**
3,000
-
1,185
13,355
**17,539**
-
117,617
-
-
**117,617**
3,685
-
27,712
24,007
**55,404**
23,115
-
17
3,291
**26,424**
6,726
-
26,658
18,134
**51,517**
-
-
218
42,364
**42,581**
1,592
1,420
1,477
5,222
**9,711**
-
-
391
21,651
**22,041**
-
1,157
8,271
10,636
**20,064**|
||333,485
1,524,691
261,143
753,357
**2,872,676**|
||300,589
-
452,768
(753,357)
**-**|
||634,074
1,524,691
713,911
-
**2,872,676**|
||Cost of
generating
voluntary
income
Trading costs
Charitable
activities
Governance
and support
costs
2019 Total
£
£
£
£
£|
||-
-
217,602
29,538
247,140
-
1,381,340
-
-
1,381,340
253,730
270,342
629,273
291,816
1,445,161
237
-
3,981
12,234
16,452
24,120
-
69,670
58,075
151,865
1,532
-
10,340
27,428
39,300
-
134,176
-
-
134,176
12,705
-
163,603
47,855
224,163
14,734
-
486
3,019
18,239
7,083
-
100,350
49,264
156,697
-
-
5,575
34,626
40,201
958
-
3,537
1,967
6,462
-
-
981
6,094
7,075
-
-
160
323
483|
||315,099
1,785,858
1,205,558
562,239
3,868,754|
||224,333
-
337,906
(562,239)
-|
||539,432
1,785,858
1,543,464
-
3,868,754|
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**29**
## **5. Net incoming resources for the year**
This is stated after charging:
|Amortisation of intangible fxed assets
Depreciation of tangible assets
Auditors’ remuneration:
Audit
Other services
Trustees’ reimbursed expenses|**2020**
**£**
**8,133**
**33,325**
**13,240**
**1,550**
**462**|2019
£|
|---|---|---|
|||12,425
30,011
11,546
1,500
1,505|
## **6. Staff costs and numbers**
The aggregate payroll costs for UK contracted staff were:
|The aggregate payroll costs for UK contracted staff were:
Salaries and wages
Severance pay
Social security costs
Pension contributions
Total costs for UK contracted staff
Total salary costs for feld-based staff overseas
**Total staff costs for the charity (as shown in note 4)**
Three employees earned more than £60,000 during the year (2019: two):
£60,000 - £60,999
£70,000 - £70,999
£80,000 - £80,999|**2020**
**£**
**888,606**
**-**
**64,080**
**59,623**
**1,012,309**
**279,875**
**1,292,184**
**2020**
**No.**
**1**
**1**
**1**|2019
£|
|---|---|---|
|||927,601
74,720
73,980
84,936|
|||1,161,237
283,926|
|||1,445,163|
|||2019
No.|
|||1
1
-|
The charity trustees were not paid or received any other benefits from employment. Two trustees were reimbursed travel expenses of £462. Trustee indemnity insurance is provided up to a limit of £1,000,000.
The key management personnel of the charity and its subsidiary, comprise the trustees, the Chief Executive Officer, Founder Director, Head of Fundraising and Communications, Head of Programme Transition, Regional Director Africa, Regional Director South Asia, Business Development Director, and Head of Finance and Compliance. The total employee benefits of key management personnel for the group were £457,739 (2019: £339,101).
Severance pay represents payments made to employees as compensation for loss of earnings under contractual obligations due to organisational restructuring. There were no severance payments made to any employees in 2020 (2019: severance payments to nine employees).
The average number of UK employees during the year was 29 (2019: 35).
|**Full time equivalents**
Costs of generating voluntary income
Charitable activities
Trading|**2020**
**No.**
**9**
**6**
**9**
**24**|2019
No.|
|---|---|---|
|||9
13
6|
|||28|
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**30**
## **7. Taxation**
The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
## **8. Grants payable including products and material donations**
|Supporting the Survival and Inclusion of disabled children (Malawi) (2018)
Tackling Poverty and Exclusion for Disabled Children and their Families (2019) (Uganda)
Health, Education and Participation for Children with Disabilities in N Sri Lanka
Rebuilding lives, growing livelihoods (Tanzania)
Wheelchair provision by Motivation Kenya regional offce
Wheelchair provision by Motivation India regional offce
Survival, Mobility, Independence (further development of Access Kenya) (Kenya)
Appropriate Wheelchair Provision through the MID partner network - Phase II (India)
Innovation (3D printing) (Google)
Development of folding 3-wheeler
Motivation InnovATe AT2030
Ready, Willing and Able (UK Aid Match) (Kenya)
Sri Lanka LDS Wheelchair Services
Provision through other programmes
Covid response (India)
Covid response II (India)
Survive and Thrive (Comic Relief) (Malawi)
All Stars (UK Aid Match) (Uganda)|**2020**
**£**
**-**
**7,529**
**-**
**2,925**
**-**
**-**
**-**
**3,152**
**79**
**-**
**-**
**5,901**
**-**
**538**
**2,679**
**685**
**32**
**18,284**
**41,804**|2019
£
89,745
13,511
(2,864)
39,921
147
16,082
46,089
5,833
43
2,983
18,005
15,988
94
1,563
-
-
-
-
247,140|
|---|---|---|
Grants payable includes cash, products and materials donations to partner organisations and are considered to be part of the costs of activities in furtherance of the objects of the charity because they enable project work initiated by the charity to be continued locally for sustainable longterm benefits. Grants are only awarded to organisations with a history of project participation with the charity and are monitored on a regular basis.
## **9. Gifts in kind and intangible income**
|**9. Gifts in kind and intangible income**|||
|---|---|---|
|Fundraising and publicity costs
Travel (fights and train)
Venue space
Furniture and fttings
Products and transportation
Consultancy and staff training
Legal and professional
Computer software|**2020**
**£**
**3,780**
**420**
**8,059**
**-**
**-**
**9,930**
**3,000**
**7,331**
**32,520**|2019
£|
|||2,013
690
7,757
2,700
80,021
9,000
6,618
43,181|
|||151,980|
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**31**
## **10. Intangible fixed assets - Group and Charity**
|Cost at 1 January 2020
Additions in year
Disposals in year
**Cost at 31 December 2020**
Amortisation at 1 January 2020
Charge for the year
On disposals
Adjustment to opening depreciation
**Amortisation at 31 December 2020**
**Net book value at 31 December 2020**
Net book value at 1 January 2020|Computer
software
**Total**
£
**£**|
|---|---|
||145,664
**145,664**
-
**-**
-
**-**|
||**145,664**
**145,664**|
||120,815
**120,815**
8,133
**8,133**
-
**-**
7,421
**7,421**|
||**136,369**
**136,369**|
||**9,295**
**9,295**|
||37,724
37,724|
## **11. Tangible fixed assets**
|**Group**
Cost at 1 January 2020
Additions in year
Disposals in year
Adjustment to opening costs
**Cost at 31 December 2020**
Accumulated depreciation at 1 January 2020
Charge for the year
On disposals
Adjustment to opening depreciation
**Accumulated depreciation at 31 December 2020**
**Net book value at 31 December 2020**
Net book value at 1 January 2020|Computer
equipment and
website
Leasehold
improvements
Tooling
**Total**
£
£
£
**£**|
|---|---|
||35,952
234,263
58,715
**328,930**
3,467
-
-
**3,467**
-
-
-
**-**
10,395
20,939
-
**31,334**|
||**49,814**
**255,202**
**58,715**
**363,731**|
||24,763
65,720
45,638
**136,121**
5,164
23,426
4,735
**33,325**
-
-
-
**-**
10,475
14,560
-
**25,035**|
||**40,402**
**103,706**
**50,373**
**194,481**|
||**9,412**
**151,496**
**8,342**
**169,250**|
||11,189
168,544
13,077
192,810|
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**32**
## **11. Tangible fixed assets (cont)**
|**Charity**
Cost at 1 January 2020
Additions in year
Disposals in year
Adjustment to opening depreciation
**Cost at 31 December 2020**
Accumulated depreciation at 1 January 2020
Charge for the year
On disposals
Adjustment to opening depreciation
**Accumulated depreciation at 31 December 2020**
**Net book value at 31 December 2020**
Net book value at 1 January 2020|Computer
equipment and
website
Leasehold
improvements
Tooling
**Total**
£
£
£
**£**|
|---|---|
||34,803
234,262
18,942
**288,007**
3,467
-
-
**3,467**
-
-
-
**-**
10,395
20,939
-
**31,334**|
||**48,665**
**255,202**
**18,942**
**322,809**|
||23,614
65,720
5,865
**95,199**
5,164
23,426
4,735
**33,325**
-
-
-
**-**
10,475
14,560
-
**25,035**|
||**39,253**
**103,706**
**10,600**
**153,559**|
||**9,412**
**151,495**
**8,342**
**169,250**|
||11,189
168,543
13,077
192,809|
## **12. Investments**
|**12. Investments**|||
|---|---|---|
|**Group**
Unlisted investment in subsidiary
**Charity**
Unlisted investment in subsidiary|**2020**
**£**
**-**
**2020**
**£**
**1**|2019
£|
|||1
2019
£|
|||1|
The results for Motivation Direct Limited, of Unit 2 Sheene Road, Bedminster, Bristol BS3 4EG (company no. 07003107) for the year ended 31 December 2020 are as follows:
|Turnover
Cost of sales
Gross proft
Administrative costs
Net proft|**2020**
**£**
**1,423,634**
**(979,313)**
**444,321**
**(545,379)**
**(101,058)**|2019
£|
|---|---|---|
|||2,081,894
(1,381,338)
700,556
(404,519)
296,037|
Net liabilities are £104,739 (2019: net assets £290,361) and share capital is £1 (2019: £1).
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**33**
## **13. Debtors**
|**13. Debtors**|||
|---|---|---|
|Trade debtors and donations due
Prepayments
Other debtors
Amounts owed by Group companies|**Group**
**2020**
2019
**£**
£
**200,361**
220,291
**17,651**
23,317
**39,132**
36,214
**-**
-
**257,144**
279,822|**Charity**|
|||**2020**
2019
**£**
£|
|||**33,531**
136,980
**17,651**
20,407
**8,035**
16,888
**338,511**
-|
|||**397,728**
174,275|
## **14. Creditors: amounts falling due within one year**
|Trade creditors
Taxation and social security
Other creditors
Accruals and deferred income
Loans
Amounts owed to group companies|**Group**
**2020**
2019
**£**
£
**154,408**
145,942
**121**
24,186
**-**
14,200
**146,843**
81,112
**44,527**
-
**-**
-
**345,899**
265,440|**Charity**
**2020**
2019
**£**
£
**18,491**
16,981
**121**
10,077
**-**
14,200
**11,623**
38,069
**26,840**
-
**-**
177,318
**57,075**
256,555|
|---|---|---|
A fixed and floating charge is held by NatWest over all of the company’s assets.
## **15. Creditors: amounts falling due after more than one year**
|Loan|**Group**
**2020**
2019
**£**
£
**455,474**
-|**Charity**|
|---|---|---|
|||**2020**
2019
**£**
£|
|||**273,161**
-|
## **16. Obligations under operating leases**
|**16. Obligations under operating leases**|||
|---|---|---|
|Amounts due in < 1 year
Amounts due in 2 - 5 years
Lease payments recognised as an expense during the year were £50,456 (2019: £65,582).|**2020**
**£**
**49,846**
**7,083**
**56,929**|2019
£|
|||49,651
58,682|
|||108,333|
||||
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**34**
## **17. Analysis of net assets**
|Intangible fxed assets
Tangible fxed assets
Net current assets
Net assets at 31 December|General funds
Restricted funds
**2020 Total**
**funds**
£
£
**£**
9,295
-
**9,295**
169,250
-
**169,250**
86,236
349,926
**436,162**
**264,781**
**349,926**
**614,707**|General funds
Restricted
funds
2019 Total
funds
£
£
£|
|---|---|---|
|||24,849
-
24,849
192,810
-
192,810
622,664
265,350
888,014|
|||840,323
265,350
1,105,673|
## **18. Commitments**
On 20 February 2017 the charity signed a 10 year lease, with a break clause after five years, for new premises at Sheene Road Bristol. As at 31 December 2020 the total commitment remaining until the break clause at 20 February 2022 was £56,929.
## **19. Reconciliation of net movement in funds to net cash flow from operating activities**
|
**rom operating activities**|||
|---|---|---|
|Net movement in funds
Adjustments for
Foreign exchange on bank balances
Interest on loans
Add back depreciation charge
Add back net adjustments to opening cost and depreciation
Add back impairment of fxed assets
Add back loss on disposal of fxed assets
Interest income
Decrease in stock
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash provided by operating activities|**Group**||
||**2020**
**£**
**(490,966)**
**-**
**-**
**41,458**
**1,123**
**-**
**-**
**(3,109)**
**6,305**
**22,678**
**35,932**
**(386,583)**|2019
£|
|||(17,575)
-
-
42,436
-
-
-
(7,098)
19,235
275,482
(135,990)|
|||176,491|
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**35**
## **20. Movement in funds**
|**20. Movement in funds**||
|---|---|
|Restricted funds
Core costs fundraising (Kenya)
Empowering People with Disabilities (Kenya)
Improving the Mobility and Quality of Life for Children at
Ngale School (Kenya)
Rebuilding lives, growing livelihoods (Tanzania) (2017-19)
Survival, Mobility, Independence (further development of
Access Kenya) (Kenya)
Supporting the Survival and Inclusion of disabled children
(Malawi) (2018)
Ready, Willing and Able (UK Aid Match) (Kenya)
Tackling Poverty and Exclusion for Disabled Children and
their Families (2019) (Uganda)
Christadelphian Meal-a-Day Fund (Kenya)
All Stars (UK Aid Match) (Uganda)
Appropriate Wheelchair Provision through the MID partner
network - Phase II (India)
Appropriate Wheelchair Provision through Mumbai, Delhi
and Chennai state governments (India)
Motivation Wheelchair fund
Innovation (3D printing) (Google)
Development of folding 3-wheeler
MP33 DIMS build and training
TRT consultancy projects
Survive and Thrive (Comic Relief) (Malawi)
Supporting Health, Wellbeing and Quality of Life of
People with Mobility Disabilities (Kenya)
Covid Response (Kenya)
Covid Response (Malawi)
Covid Response (Uganda)
LDS Evaluation (India)
Covid Response (India)
Covid Response II (India)
**Total restricted funds**
**Designated fund**
Transfer of technology (ALIMCO)
**Total designated fund**
Unrestricted funds
General funds (incl regional offces, trading and training
projects)
Motivation Direct Limited
**Total unrestricted fund**
**TOTAL FUNDS**|As at 1 Jan
2020
Incoming
resources
Outgoing
resources
Transfers
**As at 31 Dec**
**2020**
£
£
£
£
**£**|
||1,000
(1,000)
-
-
**-**
10,412
-
-
-
**10,412**
1
-
-
-
**1**
23,506
145
(21,174)
(2,476)
**1**
(18,441)
-
(10,943)
-
**(29,384)**
33,376
58,045
(31,810)
-
**59,611**
(95)
35,427
(40,405)
-
**(5,072)**
31,644
16,000
(54,217)
(783)
**(7,356)**
4,932
-
(3,916)
-
**1,016**
20,000
10,250
(18,179)
-
**12,071**
35,423
-
-
-
**35,423**
62,897
-
(3,134)
-
**59,763**
8,459
6,150
-
(1,024)
**13,585**
3,319
-
(3,282)
-
**37**
1,927
-
(1,808)
-
**119**
(1,257)
-
-
-
**(1,257)**
48,247
25,719
(391)
-
**73,576**
-
58,905
(221)
-
**58,684**
-
28,458
-
-
**28,458**
-
19,264
(24,410)
-
**(5,145)**
-
869
(10,222)
-
**(9,353)**
-
15,000
(5,895)
-
**9,105**
-
13,632
-
-
**13,632**
-
575
(2,663)
-
**(2,089)**
-
34,770
(681)
-
**34,090**|
||**265,350**
**322,209**
**(233,350)**
**(4,283)**
**349,926**|
||32,247
93
(23,920)
-
**8,420**|
||**32,247**
**93**
**(23,920)**
**-**
**8,420**|
||800,368
635,774
(1,090,715)
4,283
**349,710**
7,708
1,423,634
(1,524,691)
-
**(93,349)**|
||**808,076**
**2,059,408**
**(2,615,406)**
**4,283**
**256,361**|
|||
||**1,105,673**
**2,381,710**
**(2,872,676)**
**-**
**614,707**|
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**36**
## **20. Movement in funds**
|Restricted funds
Core costs fundraising (Kenya)
Survival and Inclusion of Disabled Children (2016
continuation) (Uganda)
Supporting the Survival and Inclusion of Disabled
Children (2016-18) (Uganda)
Tanzania country programme
Empowering People with Disabilities (Kenya)
Improving the Mobility and Quality of Life for
Children at Ngale School (Kenya)
Rebuilding lives, growing livelihoods (Tanzania)
(2017-19)
Survival, Mobility, Independence (further
development of Access Kenya) (Kenya)
Supporting the Survival and Inclusion of disabled
children (Malawi) (2018)
Ready, Willing and Able (UK Aid Match) (Kenya)
Tackling Poverty and Exclusion for Disabled
Children and their Families (2019) (Uganda)
Christadelphian Meal-a-Day Fund (Kenya)
All Stars (UK Aid Match) (Uganda)
Ganga Spinal Rehabilitation unit, Coimbatore
(India)
Shoe making - Google impact challenge:
Disabilities
Appropriate Wheelchair Provision through the MID
partner network - Phase II (India)
Appropriate Wheelchair Provision through
Mumbai, Delhi and Chennai state governments
(India)
Health, Education and Participation for Children
with Disabilities in N Sri Lanka
Sri Lanka LDS Wheelchair Services
Motivation Wheelchair fund
Innovation (3D printing) (Google)
SUDA - integrate wheelchair training into PT
schools in W Africa
Development of folding 3-wheeler
Motivation InnovATe AT2030
MP33 DIMS build and training
TRT consultancy projects
Total restricted funds
Designated fund
Transfer of technology (ALIMCO)
Total designated fund
Unrestricted funds
General funds (incl regional offces, trading and
training projects)
Motivation Direct Limited
Total unrestricted fund
TOTAL FUNDS|As at 1 Jan
2019
Incoming
resources
Outgoing
resources
Transfers
As at 31 Dec
2019
£
£
£
£
£|
|---|---|
||-
1,000
-
-
1,000
2,788
-
-
-2,788
-
-
1,698
(1,698)
-
-
24,329
-
(24,329)
-
-
33,339
4,450
(27,377)
-
10,412
685
-
-
-684
1
17,467
162,719
(156,580)
-
23,506
(1,225)
57,182
(74,397)
-
(18,441)
29,214
148,366
(144,204)
-
33,376
-
123,177
(123,272)
-
(95)
-
117,359
(85,715)
-
31,644
-
6,160
(1,228)
-
4,932
-
20,000
-
-
20,000
-
484
(488)
2
-
8,214
-8,214
-
-
-
35,423
-
-
-
35,423
169,817
-
(6,495)
(100,425)
62,897
-
-7,449
2,857
4,592
-
24,759
-
(1,235)
(23,524)
-
4,704
4,507
(451)
(301)
8,459
31,959
-
(28,640)
-
3,319
8,788
-
(8,788)
-
-
7,798
-
(5,871)
-
1,927
(92)
336,714
(336,622)
-
-
-
3,811
(5,068)
-
(1,257)
35,115
69,908
(53,916)
(2,860)
48,247|
||433,081
1,041,872
(1,083,615)
(125,988)
265,350|
||62,603
2,679
(33,035)
-
32,247|
||62,603
2,679
(33,035)
-
32,247|
||484,661
1,007,388
(966,246)
274,565
800,368
142,903
1,799,240
(1,785,858)
(148,577)
7,708|
||627,564
2,806,628
(2,752,104)
125,988
808,076|
|||
||1,123,248
3,851,179
(3,868,754)
-
1,105,673|
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**37**
## **20. Movement in funds**
## **Purpose of restricted funds**
## **Project**
Core costs fundraising (Kenya) Empowering People with Disabilities (Kenya)
Improving the Mobility and Quality of Life for Children at Ngale School (Kenya) Rebuilding lives, growing livelihoods (Tanzania) (2017-19)
Survival, Mobility, Independence (further development of Access Kenya) (Kenya)
Supporting the Survival and Inclusion of disabled children (Malawi) (2018)
Ready, Willing and Able (UK Aid Match) (Kenya)
Tackling Poverty and Exclusion for Disabled Children and their Families (2019) (Uganda)
Christadelphian Meal-a-Day Fund (Kenya)
All Stars (UK Aid Match) (Uganda)
Appropriate Wheelchair Provision through the MID partner network - Phase II (India)
Appropriate Wheelchair Provision through Mumbai, Delhi and Chennai state governments (India) Motivation Wheelchair fund
## **Brief description**
African core programme funding.
Helping people with disabilities out into their communities through assessing, prescribing and fitting 576 wheelchairs through trained services. Developing five wheelchair services to provide wheelchairs to WHO Basic Level, and ensuring they deliver a high-quality service.
Improving the mobility and quality of life for children at Ngale school, provision and fitting of wheelchairs and crutches with follow-up visits and assessments.
Working in partnership with the Kilimanjaro Association of Spinal Cord Injuries (KASI) and Moshi Cooperative University (MoCU) to increase economic empowerment and secure livelihoods of people with spinal cord injuries in the Kilimanjaro and Arusha regions.
Supporting and mentoring wheelchair services running at Intermediate Level. Training for wheelchair users, follow-up visits by trained wheelchair service staff, and WHO Intermediate refresher training for 12 technicians and clinicians.
Building on the previous three-year DFID project continuing to consolidate the Parent Training programme, providing wheelchairs to disabled children and supporting Village Savings Schemes. Parent Carer programme and Peer Training courses.
Changing attitudes and equipping disabled people in Kenya with the practical knowledge, skills and the confidence needed to get back into employment or enter the workforce for the first time. Working with communities and businesses to challenge the discrimination that leads to the exclusion of disabled people in society and in the workplace.
Addressing the lack of access to health services and opportunities for participation, experienced by children who live in West and Central Uganda, primarily remote and rural, regions of Uganda, and who have mobility impairments.
Repairs and Maintenance training for the staff at Nalondo School, including intermediate level training, ongoing mentorship and visits from peer mentors (adult wheelchair users) for disabled children.
Increasing the participation of children with disabilities in primary education in Gulu and Kampala, Uganda; through the use of inclusive sports.
Providing technical support in establishing the required infrastructure and integration of wheelchair provision, delivery of WHO curriculum-based training courses, mentoring support to partner staff, providing products on a cost-sharing basis.
Building capacity of government institutions in wheelchair services by working with partners and improving delivery.
Global Wheelchair Fund to which individuals or organisations can donate to enable Motivation to provide wheelchairs to people who cannot afford to pay for their own, through partner services.
|
Delhi and Chennai state governments (India)
Motivation Wheelchair fund|,
partners and improving delivery.
Global Wheelchair Fund to which individuals or organisations can donate to enable
Motivation to provide wheelchairs to people who cannot afford to pay for their own,
through partner services.|
|---|---|
|Innovation (3D printing) (Google)|Development of an online database of computer-aided drawing designs for postural|
||support devices, which can be digitally amended to meet the body dimensions of a|
||wheelchair user and printed using appropriate materials through a 3D printer.|
|Development of folding 3-wheeler|Development of a folding 3-wheeler wheelchair.|
|MP33 DIMS build and training|DIMS build and training - innovative wheelchair sizing project.|
|TRT consultancy projects|Training and consultancy for wheelchair service projects.|
|Survive and Thrive (Comic Relief) (Malawi)|Improving the early development of children with cerebral palsy through increasing
parent/carer knowledge, skills and peer support, and increasing early identifcation and|
||referral to Malawi’s complex-seating wheelchair services.|
|LDS Kenya|Supporting the health, wellbeing and quality of life of people with mobility disabilities|
||through increasing provision of appropriate wheelchairs in Kenya.|
|Covid Response (Kenya)|Preserving the health and wellbeing of adults and children with mobility disabilities, and|
||their families, during the Covid pandemic in Kenya.|
|Covid Response (Malawi)|Preserving the health and wellbeing of adults and children with mobility disabilities, and|
||their families, during the Covid pandemic in Malawi.|
|Covid Response (Uganda)|Preserving the health and wellbeing of adults and children with mobility disabilities, and|
||their families, during the Covid pandemic in Uganda.|
|LDS evaluation project|Filling data gaps and strengthening evidence around what works and best practice in|
||wheelchair service provision in India.|
|Covid Response (India)|Preserving the health and wellbeing of adults and children with mobility disabilities, and|
||their families, during the Covid pandemic in India.|
|Covid Response II (India)|Preserving the health and wellbeing of adults and children with mobility disabilities, and|
||their families, during the Covid pandemic in India - follow up to initial project.|
**MOTIVATION** TRUSTEES’ ANNUAL REPORT _2020_
**38**
**Trustees’ Annual Report 2020**
**Registered charity 1079358 Company registration number: 3916496 Unit 2 Sheene Road, Bedminster, Bristol BS3 4EG www.motivation.org.uk | 0117 966 0398**