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2021-01-31-accounts

AUTOMOBILE ASSOCIATION CHARITABLE TRUST FOR ROAD SAFETY AND THE ENVIRONMENT FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021

REGISTERED CHARITY NUMBER: 1125119

AUTOMOBILE ASSOCIATION CHARITABLE TRUST FOR ROAD SAFETY AND THE ENVIRONMENT

LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 JANUARY 2021

TRUSTEES E V King
R Purser
D MacSporran
L Pennell
S Ives (Resigned 1 May 2021)
S Ladley
T Rich
Z Maqbool (Resigned 1 May 2021)
M Born (Appointed 1 May 2021)
K R Miller (Appointed 1 May 2021)
DIRECTOR E V King
REGISTERED OFFICE Fanum House
Basing View
Basingstoke
Hampshire
RG21 4EA
BANKERS Nat West Bank Plc
Europa House
49 Sandgate Road
Folkestone
Kent
CT20 1RU
INDEPENDENT EXAMINER Duncan Cochrane-Dyet
MHA MacIntyre Hudson
Chartered Accountants
71 New Dover Road
Canterbury
Kent
CT1 3DZ
REGISTERED CHARITY NUMBER 1125119

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AUTOMOBILE ASSOCIATION CHARITABLE TRUST FOR ROAD SAFETY AND THE ENVIRONMENT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021

The Trustees present their report along with the financial statements of the Charity for the year ended 31 January 2021. The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the financial statements and comply with applicable law and the requirements of the Statement of Recommended Practice, "Accounting and Reporting by Charities" issued March 2005 and the Charity's Trust Deed.

The Trustees are stated on page 2. Appointment of Trustees is governed by the Trust Deed of the Charity.

The Automobile Association Charitable Trust for Road Safety and the Environment is constituted by Trust Deed dated 30 January 2008 and commenced its activities on the 4 April 2008 for the benefit of exclusively charitable purposes according to the Law of England and Wales and charitable institutes established for charitable purposes.

The Trustees must apply the income of the Charity in furthering the following objects: the advancement of health and the environment, and saving of lives by the prevention of personal injury to, and death of, individuals on roads and in motor vehicles in the United Kingdom through educating road users in road safety, campaigning on issues of road safety and promoting understanding and awareness of road safety, in whatever manner the Trustees consider appropriate to achieve such objectives.

The Trust is funded by the AA Group of companies and the Trustees delegate the day to day responsibility and administration to staff whose employment costs are met by Automobile Association Developments Limited.

The Trustees meet as often as necessary to fulfil their responsibilities.

ACTIVITIES UNDERTAKEN AND ACHIEVEMENTS

The Trustees’ strategy was to consolidate on the success of various safety campaigns it had previously launched, as well as develop a new campaign around young, rural drivers. The Trust continued to help teenagers in care learn to drive.

The arrival of coronavirus had a significant impact on the Trust’s ability to meet its anticipated timescales for the Young, Rural Drivers work. Full details are outlined below.

Young, Rural Drivers

The Trust had already analysed the data and research already available into the specific risks young drivers face on rural roads. Objectives for the campaign were set in the previous year and an application had been submitted to the Road Safety Trust for £20,000 towards the costs of the research.

Grant

The Road Safety Trust announced in March 2020 that The AA Trust had been successful in its application for a £20,000 grant. The initial application had planned for a launch in summer 2020 but due to coronavirus it was agreed with the Road Safety Trust this would be delayed until the end of summer 2020. Upon reaching the end of summer 2020, with lockdowns still having an enormous impact on travel, it was agreed to delay the launch of the campaign until spring 2021.

Campaign

Throughout 2020 the AA Trust worked with advertising agency Adam&EveDDB to finalise the creative campaign. By the end of January 2021, a campaign focussing on the life of one young driver who had lost their life in a car crash had been decided upon. In the next financial year the AA Trust will need to secure a case study and pull together the elements needed for a public launch of Rural, Young Drivers campaign.

The AA Trust also worked with Markettiers to get their views on the suitability of creating a one-off national radio show celebrating the life of the case study. It was decided to work with Adam&EveDDB and media company Goodstuff to explore opportunities of creating the show via a media partnership with a broadcasting partner. This will be explored further in 2021.

Research and interactive map

Researchers at Agilysis delivered their report into the riskiest roads for young drivers on rural roads, as well as an indepth analysis of the factors involved in these crashes. The research will be published when the campaign is launched in 2021. Agilysis also delivered the interactive map, which allows users to see which rural roads near them have had the highest frequency of crashes involving young drivers. This will also be published online when the campaign is launched in 2021.

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AUTOMOBILE ASSOCIATION CHARITABLE TRUST FOR ROAD SAFETY AND THE ENVIRONMENT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021 (continued)

ACTIVITIES UNDERTAKEN AND ACHIEVEMENTS (continued)

Safety Campaigns

Transport Select Committee:

The Trust gave evidence to the select committee enquiry into e-scooter safety in July 2020. Evidence covered questions around the safety implications they pose and the potential benefits they bring for mobility and the environment.

The Trust gave oral evidence to the transport select committee enquiry into novice and young driver safety in October 2020. The evidence covered a broad range of topics relating to young drivers including support for telematic insurance and some discussion around post-test restrictions such as night-time curfews and passenger restrictions.

Helping teenagers in care

The AA Trust continued to support and promote the concept of the benefits of helping teenagers in care and care leavers to learn to drive. The positive effects on self-esteem and opening job opportunities to them have been documented by Professor Berridge at Bristol University who has worked with the Trust.

Live Unlimited has continued to work with the AA Driving School on the project with more of their care leavers being selected for lessons, and successfully passing. Coronavirus had a huge impact on their ability to progress as driving lessons were stopped during lockdowns. The stop-start nature of lessons throughout 2020 had a negative impact on the care leavers’ confidence and progression so Trustees agreed some additional funding to help mitigate these effects. In December 2020 Trustees agreed to top up all 9 drivers currently learning through Live Unlimited with 20 hours, a total of £4,775.

Looking Ahead

The focus will be on delivering the Young, Rural Drivers campaign in the first half of 2021. Trustees will also start thinking about the next campaign and finding a topic with an environmental focus.

Going Concern

The COVID-19 pandemic and the ensuing economic shutdown has had an impact on the charity's operations. In response to the COVID-19 pandemic the Trustees have performed a robust aassessment of cash in hand and the level of reserves and income expected to be received in relation to expected expenditure. Based on this and having regard to the resources available to the charity, the Trustees have concluded there are no material uncertainties and they can continue to adopt the going concern basis in preparing the annual report and accounts.

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AUTOMOBILE ASSOCIATION CHARITABLE TRUST FOR ROAD SAFETY AND THE ENVIRONMENT

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 JANUARY 2021

(continued)

FINANCIAL REVIEW

The incoming resources on the Unrestricted Fund for the year amounted to £59,154 and Restricted Funds of £18,000. During the year £67,581 for Unrestricted Funds was expended for direct charitable purposes and £15,800 expensed for Restricted Funds. As at the year end, £156,989 remains in the Unrestricted Fund and £2,200 in the Restricted Funds for future charitable giving and to meet the costs of running the Charity.

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 (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the 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.

RISK MANAGEMENT

The Trustees actively review the major risks which the Charity faces on a regular basis and believe that maintaining reserves at current levels, combined with an annual review of the controls over key financial systems, will provide sufficient resources in the event of adverse conditions. The Trustees have also examined other operational and business risks faced by the Charity and confirm that they have established systems to mitigate the significant risks.

RESERVES POLICY

It is the policy of the Charity to maintain Unrestricted Funds at a level to meet unrestricted expenditure budgeted for the subsequent year. The Trustees confirm that they consider that they have adequate assets available to meet the Charity's obligations.

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AUTOMOBILE ASSOCIATION CHARITABLE TRUST FOR ROAD SAFETY AND THE ENVIRONMENT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021

(continued)

INVESTMENT POWERS

The Trust Deed authorises the Trustees to make and hold investments using the general funds of the Charity.

PUBLIC BENEFIT

The Trustees have complied with Section 4 of the Charities Act 2006 to have due regard to guidance published by the Charity Commission.

By Order of the Trustees

----- Start of picture text -----
…………………………… ……………………………
L Pennell E V King
Trustee Trustee
19 October 2021 19 October 2021
Fanum House
Basing View
Basingstoke
Hampshire
RG21 4EA
----- End of picture text -----

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INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF AUTOMOBILE ASSOCIATION CHARITABLE TRUST FOR ROAD SAFETY AND THE ENVIRONMENT

I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 January 2021 which are set out on pages 8 to 12.

Responsibilities and basis of report

As the Trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').

I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or

  2. the accounts do not accord with those records; or

  3. 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.

This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.

Signed: Dated: 21 October 2021

Duncan Cochrane-Dyet BSc BFP FCA

MHA MacIntyre Hudson Chartered Accountants Canterbury United Kingdom

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AUTOMOBILE ASSOCIATION CHARITABLE TRUST FOR ROAD SAFETY AND THE ENVIRONMENT

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JANUARY

Note
INCOMING RESOURCES
Incoming Resources from Generated Funds
Voluntary Income
Donations
2
Charitable activities
2
Reimbursed costs
4
Interest income
TOTAL INCOMING RESOURCES
RESOURCES EXPENDED
Cost of Generated Funds
Charitable activities
3
Reimbursed costs
3
Governance costs
5
TOTAL RESOURCES EXPENDED
NET INCOMING RESOURCES AND NET MOVEMENT IN FUNDS
Balance brought forward 1 February
9
BALANCE CARRIED FORWARD AT 31 JANUARY
9		 Restricted
Unrestricted
Total
Total
Funds
Funds
Funds
Funds
2021
2021
2021
2020
£
£
£
£
-
-
-
9,034
18,000
-
18,000
-
-
59,136
59,136
59,290
-
18
18
45
18,000
59,154
77,154
68,369
(15,800)
(6,645)
(22,445)
(16,090)
-
(59,136)
(59,136)
(59,290)
-
(1,800)
(1,800)
(1,800)
(15,800)
(67,581)
(83,381)
(77,180)
2,200
(8,427)
(6,227)
(8,811)
-
165,416
165,416
174,227
2,200
156,989
159,189
165,416

CONTINUING OPERATIONS

All income and expenditure arises from continuing operations.

TOTAL RECOGNISED GAINS AND LOSSES

The Trust has no recognised gains or losses other than the amounts included above for the current and prior year.

8

AUTOMOBILE ASSOCIATION CHARITABLE TRUST FOR ROAD SAFETY AND THE ENVIRONMENT

BALANCE SHEET AS AT 31 JANUARY

----- Start of picture text -----
2021 2020
Note £ £
CURRENT ASSETS
Debtors 10,883 10,883
Cash at Bank 195,033 177,285
205,916 188,168
CREDITORS - Amounts falling due within one year 8 (46,727) (22,752)
NET CURRENT ASSETS 159,189 165,416
NET ASSETS 159,189 165,416
REPRESENTED BY:
UNRESTRICTED FUNDS 9 156,989 165,416
RESTRICTED FUNDS 9 2,200 -
TOTAL FUNDS 159,189 165,416
Approved by the Trustees on 2021 and signed on their behalf by:-
----- End of picture text -----

19 October 2021, E V King - Trustee

9

AUTOMOBILE ASSOCIATION CHARITABLE TRUST FOR ROAD SAFETY AND THE ENVIRONMENT

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

1 ACCOUNTING POLICIES

Basis of Accounting

The Automobile Association Charitable Trust is a charity registered in England. The address of the registered office is given in the charity information on page 2 of these financial statements. The nature of the charity’s operations and principal activities are the advancement of health and the environment, and the saving of lives by the prevention of personal injury to, and death of, individuals on roads in motor vehicles in the United Kingdom through: education, campaigning and promoting.

The charity constitutes a public benefit entity as defined by FRS 102 Section 1A. 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 Section 1A) (effective 1 January 2019), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity has applied 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.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Resources Arising - Income

All incoming resources are included in the statement of financial activities when the Charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Donations are recognised as income when 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.

Grants are recognised at fair value when the Charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Donations and Grants receivable, which do not relate to specific charitable activities, are categorised as donations. Donations and Grants receivable, which relate to specific charitable activities are categorised as charitable activities. Investment income is accounted for when receivable.

Resources Expended

Expenditure is recognised on an accruals basis as a liability is incurred. Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries.

Charitable activities expenditure comprises staff salary costs attributable to its activities. Where costs cannot be directly attributed, they have been allocated to activities on a basis consistent with the use of resources.

Fund Accounting

Unrestricted funds which represent unrestricted income and expenditure where the funds can be used at the discretion of the Trustees in furtherance of the objects of the Charity.

Restricted funds are subject to specific restrictions imposed by the donor in furtherance of the objects of the Charity. These funds are held in restricted funds.

Investment income, gains and losses are allocated to the appropriate fund.

Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered.

Liabilities

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

10

AUTOMOBILE ASSOCIATION CHARITABLE TRUST FOR ROAD SAFETY AND THE ENVIRONMENT

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021 (continued)

Critical Accounting Estimates and Areas of Judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

No key judgements (apart from those involving estimates as disclosed in the notes above) have been made in the process of applying the above accounting policies.

Donations
AA Instructor Lottery
Charitable Activities
The Road Safety Trust
DriveTech (UK)
INCOME		 Restricted
Unrestricted
Total
Unrestricted
Funds
Funds
Funds
Funds
2021
2021
2021
2020
£
£
£
£
-
-
-
9,034
10,000
-
10,000
-
8,000
-
8,000
-
18,000
-
18,000
9,034

2 INCOME

3
Bank charges
Think Bike
Young rural drivers
Driving lessons for teenagers in care
4 REIMBURSED COSTS
Salary costs
EXPENDITURE ON CHARITABLE ACTIVITIES		 Restricted
Unrestricted
Total
Unrestricted
Funds
Funds
Funds
Funds
2021
2021
2021
2020
£
£
£
£
-
270
270
270
-
-
-
370
15,800
1,600
17,400
-
-
4,775
4,775
15,450
15,800
6,645
22,445
16,090
Restricted
Unrestricted
Total
Unrestricted
Funds
Funds
Funds
Funds
2021
2021
2021
2020
£
£
£
£
-
59,136
59,136
59,290

3 EXPENDITURE ON CHARITABLE ACTIVITIES

Salary costs are calculated as a proportion of Director and staff time, reflecting the cost of services provided to the Charity. All salary costs have been reimbursed by Automobile Association Developments Limited.

Independent Examination
GOVERNANCE COSTS		 Restricted
Unrestricted
Total
Unrestricted
Funds
Funds
Funds
Funds
2021
2021
2021
2020
£
£
£
£
-
1,800
1,800
1,800

11

AUTOMOBILE ASSOCIATION CHARITABLE TRUST FOR ROAD SAFETY AND THE ENVIRONMENT

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021 (continued)

6 RELATED PARTY TRANSACTIONS, TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st January 2021 nor for the year ended 31st January 2020.

There were no transactions with any other related parties (2020 - none).

Trustees' expenses

There were no trustees' expenses paid for in the year ended 31st January 2021 nor the year ended 31st January 2020.

7 Taxation

The trust is a registered charity and is therefore not subject to taxation.

8 CREDITORS- Amounts falling due within one year
Accruals		 2021
2020
£
£
46,727
22,752

9 ANALYSIS OF MOVEMENTS ON FUNDS (CURRENT YEAR)

Unrestricted Funds
Restricted Funds		 Incoming
Resources
Resources
Expended Balance at 1.2.20
Balance at
31.1.21
£
£
£
£
59,154
(67,581)
165,416
156,989
18,000
(15,800)
-
2,200
77,154
(83,381)
165,416
159,189

ANALYSIS OF MOVEMENTS ON FUNDS (PRIOR YEAR)

Unrestricted Funds
Restricted Funds		 Incoming
Resources
Resources
Expended Balance at 1.2.19
Balance at
31.1.20
£
£
£
£
68,369
(77,180)
174,227
165,416
-
-
-
-
68,369
(77,180)
174,227
165,416

Unrestricted Funds - Includes donations made principally to support projects which cannot be classified within the Trust's main headings. It also includes funds for which have been donated in advance of any designation or restriction applied by or notified to the Trustees.

Restricted Fund - This fund inccludes donations made in support of the charitable activities of the Trust which are restricted for the specific purpose of the grants.

10 ANALYSIS OF NET ASSETS (CURRENT YEAR)
Current Assets
Creditors due within one year
ANALYSIS OF NET ASSETS (PRIOR YEAR)
Current Assets
Creditors due within one year		 Restricted
Unrestricted
Total
Funds
Funds
Funds
2021
2021
2021
£
£
£
18,000
187,916
205,916
(15,800)
(30,927)
(46,727)
2,200
156,989
159,189
Restricted
Unrestricted
Unrestricted
Funds
Funds
Funds
2020
2020
2020
£
£
£
-
188,168
188,168
-
(22,752)
(22,752)
-
165,416
165,416

11 ULTIMATE CONTROLLING PARTY

The Trustees are the ultimate controlling party.

12