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← Mission Motorsport

2021-02-28-accounts

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

Charity Registration No. 1146159

Company Registration No. 07862605 (England and Wales)

MISSION MOTORSPORT

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2021

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr A D Compson
Ms A J Abbott
Rev A J Feltham-White
Lieutenant Colonel C L Coton
Mr I M Comerford (Appointed 18 March
2021)
Secretary Ms C Favier-Tilston
Key Management Mr AJ Cameron (CEO)
Mr A Marchant-Wincott (COO)
Charity number 1146159
Company number 07862605
Principal address Unit 11, W&G Industrial Estate
Faringdon Road
East Challow
Oxfordshire
United Kingdom
OX12 9TF
Registered office Unit 11, W&G Industrial Estate
Faringdon Road
East Challow
Oxfordshire
United Kingdom
OX12 9TF
Auditor Carpenter Box
Amelia House
Crescent Road
Worthing
West Sussex
BN11 1RL

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

CONTENTS

Page
Trustees' report 1 - 4
Statement of trustees' responsibilities 5
Independent auditor's report 6 - 8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12 - 23

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 28 FEBRUARY 2021

The trustees present their report and financial statements for the year ended 28 February 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 the charity's Memorandum and Articles of Association, the Charities Act 2011, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective 1 January 2019)

Objectives and activities

The charity's objects are to assist wounded, injured and sick (WIS) service personnel and veterans, by advancing any lawful charitable purpose at the discretion of the directors and in particular but not exclusively -

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

A significant curtailment in events due to lockdown meant that reduced staff numbers found alternative ways to continue to deliver charity services and support. This was actioned through continued support to individuals, encouragement to volunteer and support community activities, and through online community building.

With a focus on a population of isolated beneficiaries and staff, greater use was made of online activity. Online gaming became a weekly event involving beneficiaries across the country. Weekly chat groups were held for beneficiaries and staff. Staff and beneficiaries also volunteered for other organisations such as Op RE:ACT and Mission Motorsport brokered agreements with motor manufacturers Mazda, Toyota and Jaguar Land Rover to provide support in the form of vehicles for use by key RE:ACT volunteers and NHS staff. Once lock down restrictions were lifted Mission Motorsport found unique and innovative ways to ensure COVID-19 compliance yet still run successful events such as monthly skidpan activity at Thruxton and a drive-in Remembrance Service, and a pitlane service at Silverstone circuit in place of Race of Remembrance.

On 30 October the Charity lost its Chairman, Meyrick Cox. Andrea Abbott stepped up as interim chair and will remain so for at least one year.

With regard to technical training, although the aspiration to revamp the training wing was not realised last year, having furloughed staff and being prevented from meeting with students gave the training manager the opportunity and time to make the training wing a professional training facility worthy of any college. Technical training also continued online for a small cohort. This investment has been worthwhile and although numbers have been low the training wing has generated more income from course delivery than ever before. By way of affirmation of our value, Mission Motorsport have now been contracted by Motorsport UK to deliver 15 EV Hazard Management courses nationally to up to 150 rescue and recovery staff at an expected cost of £48,000.

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MISSION MOTORSPORT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2021

Vocational output was severely restricted in the first part of the year during lockdown but despite this twentytwo wounded, injured and sick (WIS) personnel have directly been found employment in the second half of the year. Steve Lees provided outstanding value at Jaguar Land Rover (JLR) and in the broader Defence Relationship space and our contract to provide support has been reinforced despite stringent measures elsewhere in the business. Mission Automotive continues to grow and thrive with the support of Society of Motor Manufacturers and Traders (SMMT) with two new account managers being brought on in October and January. Stellantis signed as a Mission Automotive member in January 2021 and the relationship with them is growing stronger monthly. Their financial commitment pays for one of the charity’s new staff.

After an extremely tight year financially, the trustees agreed to the creation of two sub-committees after the financial year end to help guide the charity in the future. The Finance and Investment sub-committee is tasked with revising financial and accountancy practices and in shaping our fund management and reporting. The Income Generation sub-committee is charged with determining and aiding income mechanisms to meet our long term goals in line with the charity strategy.

Strategic Aims

The Mission Motorsport strategy is to: be a force for good in MoD recovery sport, to offer training insight and provision to those in transition and those in need, and to drive the development of pathways into relevant, sustainable employment for service leavers, veterans, and their families.

The long-term financial security of the charity remains paramount, and this is currently being shaped by several ambitious projects:

Mission Motorsport Trading Activities

Merchandising and vehicle livery. Mission Motorsport livery and vehicle wrapping suite now has a professional civilian livery manager. This has already secured a significant contract with a major manufacturer, a 2021 Poppycar is being unveiled for Remembrance and other commercial opportunities are presenting themselves on a routine basis. Baseline costs for the charity have been pared back through COVID-19, and the trustees are challenging the current fundraising strategy with a view to building capacity and enhancing success.

COVID-19 Impact

The charity has weathered the COVID pandemic by being innovative and proactive. Staff were consulted on the necessity of taking a 20% reduction in salary and agreed unanimously. A 20% reduction was applied and remained in place for all personnel regardless of whether they were furloughed or not. The voluntary reduction in salary was lifted for all staff that continued to work full or part-time from July. Six staff were furloughed from 1 April 2020. A range of grant giving organisations, including the UK government, were encouraging grant applications. Mission Motorsport submitted 200 grant applications in the space of 6 weeks and was also well supported by some generous individual donors who responded to requests, particularly as we were demonstrating such a positive approach.

It was initially feared that Mission Automotive would be a casualty of the pandemic but this is very far from the case and there is no shortage of potential clients. Three new members of staff were brought in. Staff progressively returned from furlough on a part-time basis from July 2020 but given the difficulty of fundraising and the necessity of cancelling all events the COVID Job Retention Scheme was used to best effect.

A significant loss to the charity was Race of Remembrance (RoR) which it was decided to cancel in September 2020. In its place the charity launched the # YourRoR campaign encouraging individuals to keep healthy and continue to support the organisation. The campaign was successful and raised around £30,000.

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2021

Risks

The trustees have assessed the major risks to which the charity is exposed. They are briefed quarterly and are satisfied that systems are in place to mitigate exposure to major risks. Throughout the pandemic the trustees requested a weekly financial update. Significant risks and measures include:

Reserves Policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to six months expenditure or approximately £300k. The trustees consider that reserves at this level will ensure that, in the event of a specific drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. It has not been possible to maintain a reserve through the pandemic and while gradual accumulation of reserve is possible while being grant funded, it is the commercial and the big projects that show the most promise to lift the charity’s baseline to where we aspire it to remain. The full-time fundraising role has been critical in order to ensure sufficient funds are being raised to ensure sustainability but further investment of resources in income generation is required to meet the need.

At the balance sheet date the charity had reserves of £60k.

Future Plans

Mission Motorsport has three key fiscal aims in striving to deliver against its charitable objects:

It is recognised that 20/21 has been a difficult year and that resources were stretched, and a period of consolidation and reflection and the development of a revised strategy are key to the future long-term financial stability of the charity group. There are five core, income generating activities:

Structure, governance and management

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2021

Mr A D Compson Ms A J Abbott Rev A J Feltham-White Lieutenant Colonel C L Coton Mr M Cox (Deceased 30 October 2020) Mr I M Comerford (Appointed 18 March 2021)

The board of trustees are responsible for appointing trustees. The charity is currently governed by a board of 5 trustees who are committed to the objects of the charity.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

An induction programme is in place for new trustees.

Going concern

The financial statements have been prepared on a going concern basis. The Trustees have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The COVID-19 pandemic and the ensuing economic shutdown had a significant impact on the charity's operations where a reduction in staff and the changing nature of fundraising, plus a reduction in troops deployments worldwide (and an associated lack of public awareness of military issues) has made fundraising extraordinarily difficult. The Trustees have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios arising from the impact of COVID-19. This analysis also considers the effectiveness of available measures to assist in mitigating the impact. Based on these assessments and having regard to the resources available to the entity, the Trustees have concluded that there is no material uncertainty in relation to the appropriateness of continuing to adopt the going concern basis in preparing the annual report and accounts.

Auditor

In accordance with the company's articles, a resolution proposing that Carpenter Box be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

..............................

Ms A J Abbott Trustee 11/26/2021 Dated: .........................

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.............................. Lieutenant Colonel C L Coton Trustee 11/26/2021 Dated:.........................

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 28 FEBRUARY 2021

The trustees, who are also the directors of Mission Motorsport for the purpose of company law, 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).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate 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 Companies Act 2006. 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.

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MISSION MOTORSPORT

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF MISSION MOTORSPORT

Opinion

We have audited the financial statements of Mission Motorsport (the ‘charity’) for the year ended 28 February 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including 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).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the 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 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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MISSION MOTORSPORT

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MISSION MOTORSPORT

Matters on which we are required to report by exception

In the 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 directors' report included within the trustees' 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:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MISSION MOTORSPORT

As a result of these procedures, we considered the opportunities and incentives that may exist within the charity for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: health & safety, employment law and compliance with the UK Companies Act.

In addition to the above, our procedures to respond to risks identified included the following:

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Robin Evans BA FCA CTA (Senior Statutory Auditor) 11/26/2021 for and on behalf of Carpenter Box ......................... Chartered Accountants Statutory Auditor Worthing

Carpenter Box is a trading name of Carpenter Box Limited

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 28 FEBRUARY 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Donations and legacies
3
437,827
70,000
Charitable activities
4
888
-
Other trading activities
5
75,519
-
Investments
5
-
Other income
-
-
Total income
514,239
70,000
Expenditure on:
Raising funds
6
13,869
-
Charitable activities
7
445,033
219,231
Other
10
776
-
Total resources expended
459,678
219,231
Net incoming/(outgoing) resources before
transfers
54,561
(149,231)
Gross transfers between funds
(32,679)
32,679
Net income/(expenditure) for the year/
Net incoming/(outgoing) resources
21,882
(116,552)
Other recognised gains and losses
Other gains or losses
27
-
Net movement in funds
21,909
(116,552)
Fund balances at 1 March 2020
37,177
117,384
Fund balances at 28 February 2021
59,086
832		 Restated
Total
Total
2021
2020
£
£
507,827
706,879
888
76,295
75,519
-
5
10
-
861
584,239
784,045
13,869
9,243
664,264
851,553
776
-
678,909
860,796
(94,670)
(76,751)
-
-
(94,670)
(76,751)
27
16
(94,643)
(76,735)
154,561
231,296
59,918
154,561

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

BALANCE SHEET

AS AT 28 FEBRUARY 2021

2021
Notes
£
Fixed assets
Tangible assets
12
Investments
13
Current assets
Stocks
14
9,776
Debtors
15
24,798
Cash at bank and in hand
109,088
143,662
Creditors: amounts falling due within
one year
17
(148,740)
Net current (liabilities)/assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
18
Net assets
Income funds
Restricted funds
21
Unrestricted funds
The financial statements were approved by the Trustees on ......................
..............................
..............................
Ms A J Abbott
Lieutenant Colonel C
Trustee
Trustee
11/26/2021		 2020
£
£
110,629
200
110,829
7,521
124,924
18,951
151,396
(143,103)
(5,078)
105,751
(45,833)
59,918
832
59,086
59,918
...
L Coton		 £
146,068
200
146,268
8,293
154,561
-
154,561
117,384
37,177
154,561

Company Registration No. 07862605

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 28 FEBRUARY 2021

Notes
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
27
Investing activities
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed
assets
Investment income received
Net cash generated from investing
activities
Financing activities
Proceeds of new bank loans
Net cash generated from/(used in)
financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
(4,038)
4,971
5
50,000		 £
39,199
938
50,000
90,137
18,951
109,088		 2020
£
(1,113)
12,350
10
-		 £
(40,039)
11,247
-
(28,792)
47,743
18,951

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2021

1 Accounting policies

Charity information

Mission Motorsport are a charity whose aim is to aid in the recovery and rehabilitation of those affected by military operations, by providing opportunities through motorsport.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document and a deed of trust, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The charity is a company limited by guarantee and has no share capital.

1.2 Going concern

The financial statements have been prepared on a going concern basis. The trustees have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The COVID-19 pandemic and the ensuing economic shutdown has had a significant impact on the charity's operations with events being cancelled and funding reduced as further described in the trustee's report. In response to the COVID-19 pandemic, the trustee's have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios arising from the impact of COVID-19 and the likely future funding available to the charity. This analysis also considers the effectiveness of available measures to assist in mitigating the impact and assisting with cash flow. In addition, a financial sub-committee has been set up to monitor and review these budgets and forecasts and assist with control of costs and cash. The committee is meeting on a monthly basis to ensure regular and detailed oversight of the charity’s financial position.

Based on these in depth assessments and having regard to the resources available to the entity, the trustees have concluded that there is no material uncertainty in relation to the appropriateness of continuing to adopt the going concern basis in preparing the annual report and accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Donations, grants and gifts are recognised when receivable. In the event that a donation is subject to fulfilling performance conditions before the charity is entitled to the funds, the income is deferred and not recognised until it is probable that these conditions will be fulfilled in the reporting period. Income from Gift Aid tax reclaims is recognised for any donations with relevant Gift Aid tax reclaims is recognised for any donations with relevant Gift Aid certificates recognised in income for the year.

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2021

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment 33.33% per annum on cost Fixtures and fittings 10% to 33.33% per annum on cost Computers 33.33% per annum on cost Motor vehicles 25% per annum on reducing balance / 20% per annum straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Fixed asset investments

Fixed asset investments are measured at transaction price excluding transaction costs.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

1.11 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2021

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.12 Government Grants

Government grants relate to amounts received under the Coronavirus Job Retention Scheme ("CJRS") and are recognised in the period to which they relate.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2021

3 Donations and legacies

Restated Restated Restated
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Donations and gifts 337,039 70,000 407,039 510,414 196,465 706,879
Government grants 100,788 - 100,788 - - -
437,827 70,000 507,827 510,414 196,465 706,879
Charitable activities
Fundraising Merchandise
Total		 Fundraising Merchandise Bicester Total
events income 2021 events income heritage 2020
2021 2021 2020 2020 2020
£ £ £ £ £ £ £
Sales
within
charitable
activities (500) 1,388 888 65,036 11,156 103 76,295
All income from charitable activities is unrestricted in the current and comparative periods.
Other trading activities
Unrestricted Total
funds
2021 2020
£ £
Recharge of staff costs 75,519 -

4 Charitable activities

5 Other trading activities

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 28 FEBRUARY 2021

6 Raising funds

Unrestricted Unrestricted
funds
funds
2021
2020
£
£
Fundraising and publicity
Seeking donations, grants and legacies
-
-
Advertising
585
370
Other fundraising costs
13,284
8,512
Fundraising and publicity
13,869
8,882
13,869
8,882
Charitable activities
Other costs
Support
costs
£
£
Audit fees
-
6,965
Other fees paid to auditor
13,859
Training
-
-
Administration costs
-
10,254
Delivery costs
219,231
365,679
Building overheads
-
48,276
219,231
445,033
219,231
445,033		 Restricted
Total
funds
2020
2020
£
£
343
343
-
370
18
8,530
361
9,243
361
9,243
Restated
Total
2021
Total
2020
£
£
6,965
6,650
13,859
11,500
-
1,313
10,254
4,102
584,910
770,661
48,276
57,327
664,264
851,553
664,264
851,553		 Total
2020
£
343
370
8,530
9,243
9,243
851,553
851,553

7 Charitable activities

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 28 FEBRUARY 2021

9 Employees

Number of employees

The average monthly number of employees during the year was:

2021
Number
Management
3
Administration
2
Vocational
4
Workshop
2
Livery
1
12
Employment costs
2021
£
Wages and salaries
375,784
Social security costs
38,318
Other pension costs
8,547
422,649
The number of employees whose annual remuneration was £60,000 or more were:
2021
Number
£60,000 - £70,000
1
10
Other
2021
£
Net loss on disposal of tangible fixed assets
776
776		 2020
Number
4
1
4
2
1
12
2020
£
410,959
39,951
9,151
460,061
2020
Number
1
2020
£
-
-

11 Non exchange transactions

During the year the charity was provided a track day free of charge with a market value of approximately £8,000, as well as two motor vehicles with an aggregate value of £10,500. In the prior year, motor vehicles with a value of £2,500 were donated to the charity.

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2021

12 Tangible fixed assets
Plant and Fixtures and
Computers		 Motor vehicles Total
equipment fittings
£ £ £ £ £
Cost
At 1 March 2020 14,365 25,944 9,330 277,462 327,101
Additions 2,488 - - 12,050 14,538
Disposals - - - (15,500) (15,500)
At 28 February 2021 16,853 25,944 9,330 274,012 326,139
Depreciation and impairment
At 1 March 2020 11,283 20,974 8,976 139,800 181,033
Depreciation charged in the year 2,894 4,492 244 36,600 44,230
Eliminated in respect of disposals - - - (9,753) (9,753)
At 28 February 2021 14,177 25,466 9,220 166,647 215,510
Carrying amount
At 28 February 2021 2,676 478 110 107,365 110,629
At 29 February 2020 3,082 4,970 354 137,662 146,068
13 Fixed asset investments
Other
investments
Cost or valuation
At 1 March 2020 & 28 February 2021 200
Carrying amount
At 28 February 2021 200
At 29 February 2020 200
2021 2020
Other investments comprise: Notes £ £
Investments in subsidiaries 24 200 200

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2021

14
Stocks
Finished goods and goods for resale
15
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
16
Loans and overdrafts
Bank loans
Payable within one year
Payable after one year
The bank loan is 100% guaranteed by the government.
The loan carries a fixed interest rate of 2.5% per annum and is payable over 6
receipt.		 2021
£
9,776
2021
£
997
17,802
5,999
24,798
2021
£
50,000
4,167
45,833		 2020
£
7,521
2020
£
12,414
104,622
7,888
124,924
2020
£
-
-
-
years from the date of

17 Creditors: amounts falling due within one year

Notes
Bank loans
16
Other taxation and social security
Deferred income
19
Trade creditors
Amounts owed to subsidiary undertakings
Other creditors
Accruals and deferred income		 2021
£
4,167
26,187
3,000
38,938
68,490
185
7,773
148,740		 2020
£
-
37,067
-
55,136
45,415
-
5,485
143,103

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2021

18
Creditors: amounts falling due after more than one year
Notes
Bank loans
16
19
Deferred income
Other deferred income		 2021
£
45,833
2021
£
3,000		 2020
£
-
2020
£
-

20 Retirement benefit schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

21 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds
Balance at 1 Incoming Resources **Transfers ** Balance at 28
March 2020 resources expended February 2021
£ £ £ £ £
Help For Heroes 5,947 - (6,071) 124 -
Veterans Lottery Fund - 10,000 (12,777) 2,777 -
Armed Forces Covenant Covid
Relief - 60,000 (60,196) 196 -
JTI 855 - (855) - -
Bruce Wakefield Charitable Trust 5,000 - (5,152) 152 -
Reece Foundation Woodland
Project 5,000 - (5,152) 152 -
Occupational Therapy Support 832 - - - 832
Armed Forces Covenant Fund
Trust 99,750 - (129,028) 29,278 -
117,384 70,000 (219,231) 32,679 832

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2021

21 Restricted funds

(Continued)

Help For Heroes – Partner charity providing grant funding to Mission Motorsport to deliver recovery sporting activity to a beneficiary audience. Partnership ceased in October 2019 owing to changes in policy and fundraising shortfalls by H4H.

The Veterans' Lottery Fund - Helps partner organisations by supporting them to deliver life-changing projects through a grant award scheme. The VF provided a grant to Mission Motorsport to provide Mental Health, Welfare, and Occupational Therapy support.

The Armed Forces Covenant Trust Fund - Covid 19 Impact Programme - Mental and Physical Welfare Support - the grant was awarded to Mission Motorsport to continue delivering support through a difficult period of time during the pandemic, specifically July - 31st October 2020.

JTI – Japan Tobacco International – engaged Mission Motorsport to create a three-year Armed Forces Engagement programme.

Bruce Wake Charitable Trust - The Trust was established to encourage and assist the provision of leisure activities for the disabled .

Reece Foundation Woodland Project – Grant funding supplied on the basis of £5k per year for three years to contribute towards the delivery of a woodland activity project in Cumbria delivered by Woodland Experiences Ltd.

Occupational Therapy Support – to provide direct support for the purchase of OT equipment and to cover expenses for OT volunteers working in direct support of MM beneficiaries.

Armed Forces Covenant Fund Trust - this is split into three projects as follows:

Project 1 - The group will run activities at the Three Sisters circuit, created by Wigan Council and used for karting, biking and cars. The events offered by the group will draw veterans into sport and offer a 'level playing field' for disabled and able-bodied veterans. Sessions will include car control, a track experience and driver training.

Project 2 - The group will offer outdoor, inclusive activities including visits to Goodwood, Silverstone, Anglesey and Thruxton, car control sessions, 4x4 experiences and driver training. Each activity is designed to be inspirational and inclusive, building confidence and friendships and being veteran led.

Project 3 - The project will provide over 250 individual opportunities annually for veterans to attend a veteran-led, purpose designed 24hr outdoor experience in the North West of England. Delivered by partner Woodland Experiences, the project provides a welcome break for hard-to-reach veterans and their families, creating memories and developing skills.

Unrestricted funds – funds obtained by the charity that do not have a limitation on use or that are not specified for a particular use by the donor or grant giving organisation.

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2021

22 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 28
February 2021 are
represented by:
Tangible assets
110,629
-
Investments
200
-
Current assets/
(liabilities)
(5,078)
-
Long term liabilities
(45,833)
-
59,918
-		 Total Unrestricted
funds
Restricted
funds
2021
2020
2020
£
£
£
110,629
146,068
-
200
200
-
(5,078)
8,293
-
(45,833)
-
-
59,918
154,561
-		 Total
2020
£
146,068
200
8,293
-
154,561

23 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2021 2020
£ £
Aggregate compensation 119,768 125,154

Transactions with related parties

In the current period an asset worth £7,000 (2020 - Nil) was donated to the charity by one of the related parties. In 2020 £353 of expenses were reimbursed to a Trustee.

24 Subsidiaries

These financial statements are separate charity financial statements for Mission Motorsport.

Details of the charity's subsidiaries at 28 February 2021 are as follows:

Name of undertaking Registered Nature of business Class of % Held
office shares held Direct Indirect
Mission Motorsport Trading England Vinyl wrapping Ordinary 100.00
Limited
Mission Consulting Services
England		 Employment services for Ordinary 100.00
Limited veterans

DocuSign Envelope ID: 7E1E8606-5598-42EB-BD5D-81132FC31505

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2021

25 Prior period adjustment

In the prior year income and related expenditure in relation to Race of Remembrance was classified as restricted income and expenditure. In the current year it has been identified that this income and expenditure was unrestricted. The income and related expenditure has therefore been recognised as unrestricted as a prior year adjustment. As the income was fully spent in the year and a transfer was made from the unrestricted funds there is no impact on the closing position on the balance sheet.

26 Analysis of changes in net funds

26 Analysis of changes in net funds
At 1 March 2020 Cash flows At 28 February
2021
£ £ £
Cash at bank and in hand 18,951 90,137 109,088
Loans falling due within one year - (4,167) (4,167)
Loans falling due after more than one year - (45,833) (45,833)
18,951 40,137 59,088
27 Cash generated from operations 2021 2020
£ £
Deficit for the year (94,670) (76,751)
Adjustments for:
Investment income recognised in statement of financial activities (5) (10)
Foreign exchange differences 27 16
Loss/(gain) on disposal of tangible fixed assets 776 (861)
Donations of fixed assets (10,500) (2,400)
Depreciation and impairment of tangible fixed assets 44,230 59,119
Movements in working capital:
(Increase)/decrease in stocks (2,255) 1,792
Decrease/(increase) in debtors 100,126 (83,589)
(Decrease)/increase in creditors (1,530) 62,645
Increase in deferred income 3,000 -
Cash generated from/(absorbed by) operations 39,199 (40,039)