THE BRDC MOTOR SPORT CHARITY (Registered Charity No. 1084173)
ANNUAL REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED TO 31 DECEMBER 2022
THE BRDC MOTOR SPORT CHARITY
ANNUAL REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED TO 31 DECEMBER 2022
CONTENTS
| Page | |
|---|---|
| Annual Report of the Trustees | 1 - 5 |
| Report of the Independent Examiner | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Notes to the Accounts | 9 - 12 |
Page 1
THE BRDC MOTOR SPORT CHARITY
ANNUAL REPORT OF THE TRUSTEES
FOR THE YEAR ENDED TO 31 DECEMBER 2022
The trustees submit their report and independently examined financial statements of the BRDC Motor Sport Charity (“the Fund” or “the Charity”) for the year ended to 31 December 2022. These have been prepared in accordance with the accounting policies set out in Note 1 and comply with the Charity’s trust deed and applicable law. The comparatives are for the twelve month period to 31 December 2021.
1. REFERENCE AND ADMINISTRATIVE DETAILS
The BRDC Motor Sport Charity, registered charity number 1084173, is based and administered in the United Kingdom. The registered address is Eighth Floor, 6 New Street Square, London, EC4A 3AQ.
The names of the trustees who served throughout the year and continue to serve at the date of this report’s approval are:
David Pender Richards CBE (retired 28 September 2022) Christopher Jan Andrew Bliss (Treasurer) Ian Harrower Dario Franchitti (appointed 26 April 2022)
Independent Examiner:
Christopher Hawley FCA, Rawlinson & Hunter LLP, Eighth Floor, 6 New Street Square, London, EC4A 3AQ
Principal Bankers:
Bank of Scotland Plc, 33 Old Broad Street, London, EC2N 1HZ
Solicitors:
Stone King,16 St John’s Lane, London, EC1M 4BS
Accountants:
Rawlinson & Hunter LLP, Eighth Floor, 6 New Street Square, London, EC4A 3AQ
Investment Managers:
Cazenove Capital, 1 London Wall, London, EC2Y 5AU
Facilitator:
Ms Jenny Brown, 94 Bull Lane, Wombourne, South Staffordshire, WV5 9BZ
Page 2
THE BRDC MOTOR SPORT CHARITY
ANNUAL REPORT OF THE TRUSTEES (continued)
FOR THE YEAR ENDED TO 31 DECEMBER 2022
2. STRUCTURE, GOVERNANCE AND MANAGEMENT
The Fund was established by a Deed dated 16 November 2000 and is an unincorporated charitable trust bound by the proper law of England and Wales. Initially formed to support BRDC Members, funding was provided by generous benefactors, but the objectives have now broadened as set out in section 3.
All trustees are resident in the United Kingdom and meet on a regular basis. They are all members of the British Racing Drivers’ Club.
The number of trustees shall be a minimum of three at any one time and new trustees shall be appointed by resolution of existing trustees.
The Facilitator assists the trustees with the assessment of possible beneficiaries and the associated administration. Applications received from individuals are reviewed and assessed by the Facilitator, who will then make recommendations to the trustees. If approved, the trustees decide on the level of support and whether the support will be provided by way of a one-off donation or a series of donations. The Facilitator is fully qualified and has a wealth of experience in dealing with individuals such as those approaching the fund for assistance. In many cases the Facilitator can provide assistance to individuals to ensure they are receiving all benefits due to them, therefore improving the individual’s circumstances without unnecessarily defraying the Charity’s funds.
Statement of Trustees’ Responsibilities
The trustees are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (UK GAAP).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the Charity and of the incoming resources and application of resources of the Charity for that period. In preparing those financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, where relevant the Charities Act 2022, the Charity (Accounts and Reports) Regulations 2015 and trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 3
THE BRDC MOTOR SPORT CHARITY
ANNUAL REPORT OF THE TRUSTEES (continued)
FOR THE YEAR ENDED TO 31 DECEMBER 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)
In accordance with trust law, as charity trustees, we certify that:
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in so far as we are aware, there is no relevant information of which the Charity’s Independent Examiner is unaware; and
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we have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant information and to establish that the Charity’s Independent Examiner is aware of that information.
Internal Controls
The trustees have overall responsibility for ensuring that the Charity has appropriate systems of internal controls. They are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements follow best practice. They are also responsible for the Charity safeguarding its assets and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The system of internal controls is designed to provide reasonable, but not absolute, assurance against material misstatement or loss.
Induction and Training
Training of the trustees is undertaken on an informal basis. All trustees are kept informed at meetings of their duties and obligations under the law, in addition to their proper conduct.
3. OBJECTIVES AND ACTIVITIES
The Objects of the Charity (“Objects”) are the relief of need by reason of youth, age, ill-health, disability or financial hardship for the public benefit among persons involved in the participation, promotion or administration of motorsport, whether or not for remuneration, and their families and dependants.
For the purposes of the Objects, persons involved in the participation, promotion or administration of motorsport shall include, but shall not be limited to, competitors, marshals, officers, employees at motorsport venues and those involved in the design, construction, testing, repair and supply of parts for vehicles intended for competition use.
Grant Making Policy
The Charity has established to provide grants for purposes that are exclusively charitable under the law of England and Wales. The Charity intends to put in place sound grant arrangements so that it can properly select appropriate grantees and impose prudent terms on grants.
Fundraising
The trustees have referred to the Code of Fundraising Practice (“the Code”) which were developed on 7 July 2016 by the fundraising community through the work of the Institute of Fundraising and Public Fundraising Association, and the Guidance on Charities and Fundraising issued by the Charity Commission (“CC20”) and the Charities (Protection and Social Investment) Act 2016 (“the Act”). As the Charity is engaged in public fundraising activities it needs to ensure that it remains compliant with the guidance listed in the new code, CC20 and the Act.
Page 4
THE BRDC MOTOR SPORT CHARITY
ANNUAL REPORT OF THE TRUSTEES (continued)
FOR THE YEAR ENDED TO 31 DECEMBER 2022
OBJECTIVES AND ACTIVITIES (continued)
Statement of Public Benefit
The trustees are aware of the Charity Commission guidance on Public Benefit and confirm that they have complied with the duty in Section 4 of The Charities Act 2011, where relevant the Charities Act 2022, to have due regard to it. They consider the information which follows in this annual report about the Charity’s aims, activities and achievements in the areas of interest that the Charity supports and demonstrates the benefit to its beneficiaries and through them to the public, that arise from those activities.
4. ACHIEVEMENT AND PERFORMANCE
Investments
The assets of the Charity consist principally of investments and cash and these are reported on the Balance Sheet and in the supporting notes at their market value at 31 December 2022. The trustees have invested £789,492 with Cazenove Capital in the Cazenove Charity Multi-Asset (Accumulation) Fund and at 31 December 2022 the value of this investment was £944,367. Unrealised losses for the period were £101,924 (2021 - £62,097 gain). Partial sales of the investment during the period realised a gain of £475 (2021 - £235).
The trustees review the investment policy at their regular trustee meetings.
Charitable Activities
During the period the Charity pledged charitable donations totalling £37,930 to thirteen individuals (2021: £16,946 to eight individuals).
5. FINANCIAL REVIEW
Total charitable activities for the period ended 31 December 2022 totalled £47,404 (2021 - £31,543) and included charitable donations, legal fees, insurance and costs of the facilitator totalling £7,727 (2021 - £6,902). The grants were made in line with the policies set out in part 3 of this report, Objectives and Activities.
Incoming Resources totalled £62,904 (2021 - £65,270). The trustees would like to express their gratitude to those individuals and organisations that have donated to the Charity.
Reserves Policy
The trustees have examined the Charity’s requirement for resources in light of the main risks to the organisation and have no outstanding commitments or cash demands which are not adequately covered by existing resources. The net assets of the Charity are regarded as free reserves and the funds at 31 December 2022 will be retained to make grants in accordance with the Charity’s charitable objects and any policies. The trustees consider that the freely expendable funds are appropriate and adequate taking into account plans for grants to be awarded in the future and have at present therefore not designated any specific reserves. However, the trustees will keep this under constant review. In future years a specific reserves policy may be required.
The total Unrestricted Reserves at 31 December 2022 were £992,923 (2021 - £1,081,753)
Page 5
THE BRDC MOTOR SPORT CHARITY
ANNUAL REPORT OF THE TRUSTEES (continued)
FOR THE YEAR ENDED TO 31 DECEMBER 2022
FINANCIAL REVIEW (continued)
Risk Management
A risk assessment has been undertaken which comprises:
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an annual review of the risks the charity may face;
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the establishment of systems and procedures to mitigate those risks; and
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the implementation of procedures designed to minimise any potential impact on the Charity should those risks materialise.
This continuing process will identify risk areas to which the Charity is vulnerable and highlight any necessary safeguards that will need to be put in place. No major risks were identified at the date of these accounts.
The trustees have signed fit and proper declarations in line with HMRC guidance.
6. PLANS FOR THE FUTURE
The trustees do not propose to deviate from the current objectives and activities of the Charity as set out in part 3 of this report, Objectives and Activities.
Prior to the preparation of these financial statements David Richards CBE resigned from his role as Chairman of the Charity on 28 September 2022. The Trustees would like express their gratitude for David’s 22 years of service to the Charity.
Approved by the trustees on and signed on their behalf by:
CHRISTOPHER BLISS
21/4/2023
Page 6
THE BRDC MOTOR SPORT CHARITY
REPORT OF THE INDEPENDENT EXAMINER TO THE TRUSTEES
I report to the charity trustees on my examination of the accounts of the BRDC Motor Sport Charity for the year ended 31 December 2022 which comprise the Statement of Financial Activities, Balance Sheet and the related notes.
Responsibilities and basis of report
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’) and where relevant, the Charities Act 2022 (“the Act”).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent Examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
CHRISTOPHER HAWLEY
3/5/2023
Christopher Hawley FCA
Rawlinson & Hunter Eighth Floor 6 New Street Square London EC4A 3AQ
Page 7
THE BRDC MOTOR SPORT CHARITY
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED TO 31 DECEMBER 2022
| Unrestricted Funds | Unrestricted Funds | ||
|---|---|---|---|
| Total | Total | ||
| Page | 31.12.2022 | 31.12.2021 | |
| £ | £ | ||
| Income from: | |||
| Investments (note 2) | 10 | 38,759 | 35,749 |
| Donations and legacies (note 3) | 10 | 24,145 | 29,521 |
| Total income | 62,904 | 65,270 | |
| Expenditure on: | |||
| Charitable activities (note 4) | 10 | 47,404 | 31,543 |
| Raising funds (note 6) | 10 | 2,881 | 2,909 |
| Total expenditure | 50,285 | 34,452 | |
| Net income before net gains on investment assets | 12,619 | 30,818 | |
| Net (losses) / gains on investment assets (note 7) | 11 | (101,449) | 62,332 |
| Net (expenditure) / income | (88,830) | 93,150 | |
| Reconciliation of funds: | |||
| Total funds brought forward at 1 January 2022 | 1,081,753 | 988,603 | |
| Total funds carried forward at 31 December 2022 | £ 992,923 | £1,081,753 | |
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There were no recognised gains or losses other than those included in the statement of financial activities.
All amounts relate to continuing operations.
The notes on pages 9 to 12 form part of these financial statements.
Page 8
THE BRDC MOTOR SPORT CHARITY (Registered Charity No. 1084173)
BALANCE SHEET
AT 31 DECEMBER 2022
| Page | 31.12.2022 | 31.12.2021 | |
|---|---|---|---|
| £ | £ | ||
| Fixed Assets | |||
| Investments and cash at market value (note 7) | 11 | 944,396 | 1,010,764 |
| Current Assets | |||
| Cash at bank (note 9) | 11 | 59,392 | 66,041 |
| Debtor (note 8) | 11 | 1,008 | - |
| Prepayment | 117 | 100 | |
| Loan (note 11) | 12 | - | 10,000 |
| 60,517 | 76,141 | ||
| Current Liabilities | |||
| Creditors:amounts falling due within one year (note 10) | 11 | (11,990) | (5,152) |
| Net Current Assets | 48,527 | 70,989 | |
| Total assets less current liabilities | £ 992,923 | £1,081,753 | |
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| Total Charity Funds | £ 992,923 | £1,081,753 | |
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Approved by the trustees on and signed on their behalf by:
CHRISTOPHER BLISS
21/4/2023
The notes on pages 9 to 12 form part of these financial statements.
Page 9
THE BRDC MOTOR SPORT CHARITY
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED TO 31 DECEMBER 2022
1. ACCOUNTING POLICIES
These financial statements have been prepared on a going concern basis under the historical cost convention, modified to include the revaluation of investments. The Charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (“Charities SORP FRS 102”) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011, and where relevant the Charities Act 2022. The Trust constitutes a public benefit entity as defined by Charities SORP FRS 102. The principal accounting policies adopted are as follows:
The Charity has applied FRS 102 Update Bulletin 1 as published on 2 February 2016 and does not include a cash flow statement on the grounds that it is applying FRS 102 section 1A.
Fixed asset investments
Investments are included at closing mid-market value at the Balance Sheet date. Realised gains and losses on investments are recognised as they arise and any gain or loss on revaluation is taken to the Statement of Financial Activities (SOFA). The determination of any gains and losses is calculated by reference to the value of such assets at the beginning of the accounting period.
Income recognition
Investment income is derived from dividends receivable from investments and is accounted for in the period in which the Fund is entitled to receipt.
Voluntary donations and interest from deposit accounts are included when received.
Expenditure recognition
All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure.
Charitable activities comprise grants and donations made during the period together with grant support costs and governance costs and are expended through the SOFA when the offer is conveyed to the recipient. The trustees have made the decision not to discount grants committed for future periods.
Status of funds
The entire resources of the Fund are unrestricted and the trustees have complete discretion for their use in pursuance of its objectives.
Taxation
The Charity is not subject to any taxes on its charitable activities.
Going Concern
The Financial Statements have been prepared on a going concern basis. The Foundation’s expenditure requirements are within control of the trustees and therefore the pandemic has not had a negative impact on the Foundation’s financial sustainability and the trustees consider the adoption of the going concern basis in preparing the financial statements to be appropriate.
Page 10
THE BRDC MOTOR SPORT CHARITY
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED TO 31 DECEMBER 2022
| Page | 31.12.2022 | 31.12.2021 | ||
|---|---|---|---|---|
| £ | £ | |||
| 2. | INCOME FROM INVESTMENTS | |||
| Income from UK quoted equities | 38,007 | 35,744 | ||
| Deposit interest | 752 | 5 | ||
| Total investment income | 7 | £ 38,759 | £ 35,749 | |
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| 3. | INCOME FROM DONATIONS AND LEGACIES | |||
| Donations received | 23,137 | 9,291 | ||
| Gift Aid Reclaim | 1,008 | - | ||
| Legacy received | - | 20,230 | ||
| 7 | £ 24,145 | £ 29,521 | ||
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| 4. | CHARITABLE ACTIVITIES | |||
| Charitable grants to individuals | 37,930 | 16,946 | ||
| Support cost | ||||
| Facilitator fees | 7,727 | 6,902 | ||
| Governance costs | ||||
| Legal fees | 1,360 | 7,450 | ||
| Insurance | 387 | 245 | ||
| Total charitable activities | 7 | £ 47,404 | £ 31,543 | |
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| 5. | DONATED SERVICES | |||
| Rawlinson & Hunter have donated their technical and | advisory services | in preparing the | financial | |
| statements and other charity administration. The value of these services has been estimated at | ||||
| £13,500 plus VAT for the period ended 31 December 2022 (2021 - £14,700 plus VAT). | ||||
| 6. | EXPENDITURE OF RAISING FUNDS | |||
| Investment management fees | 7 | £ 2,881 | £ 2,909 | |
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Page 11
THE BRDC MOTOR SPORT CHARITY
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED TO 31 DECEMBER 2022
| Page | 31.12.2022 | 31.12.2021 | ||
|---|---|---|---|---|
| £ | £ | |||
| 7. | FIXED ASSET INVESTMENTS | |||
| Schroder Unit Trusts – Cazenove Charity Multi-Asset | 944,367 | 1,010,735 | ||
| Cash held as part of the investment portfolio | 29 | 29 | ||
| 8 | £ 944,396 | £ 1,010,764 | ||
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| Quoted investments | ||||
| Market value at 1 January 2022 | 1,010,735 | 955,502 | ||
| Additions at book cost | 38,006 | 35,744 | ||
| Sale proceeds | (2,925) | (42,843) | ||
| Net realised gains on sales | 475 | 235 | ||
| Net unrealised (losses) / gains on revaluation | (101,924) | 62,097 | ||
| Market value at 31 December 2022 | £ 944,367 | £1,010,735 | ||
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| Historical cost at 31 December 2022 | £ 825,048 | £ 789,492 | ||
| Net gains on investment assets | ||||
| Net realised gains on sales | 475 | 235 | ||
| Net unrealised gain (losses) / gains on revaluation | (101,924) | 62,097 | ||
| Total net (losses) / gains on investment assets | 7 | £ (101,449) | £ 62,332 | |
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| 8. | DEBTOR | |||
| Gift Aid reclaim | 8 | £ 1,008 | £ - | |
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| 9. | CASH AT BANK | |||
| Coutts & Co. | 52,678 | 59,327 | ||
| Bank of Scotland | 6,714 | 6,714 | ||
| 8 | £ 59,392 | £ 66,041 | ||
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| 10. | CREDITORS - Amounts falling due within one year | |||
| Donation commitment due | 9,450 | 3,160 | ||
| Facilitator fees | 1,335 | 1,235 | ||
| Investment management fees | 714 | 757 | ||
| Legal fees | 491 | - | ||
| 8 | £ 11,990 | £ 5,152 | ||
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Page 12
THE BRDC MOTOR SPORT CHARITY
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED TO 31 DECEMBER 2022
| Page | 31.12.2022 | 31.12.2021 | ||
|---|---|---|---|---|
| £ | £ | |||
| 11. | LOAN | |||
| Interest free loan granted to a beneficiary | 8 | £ - | £ 10,000 | |
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The Trustees resolved to waive their entitlement to the repayment of the loan totalling £10,000 during the year. The loan has been converted to an outright grant awarded to the beneficiary.
12. TRANSACTIONS WITH TRUSTEES AND CONNECTED PERSONS
No trustee received any remuneration or refund of expenses during the period ended 31 December 2022. There were no employees during the period and the ultimate controlling party is the board of trustees.