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2024-03-31-accounts

INSTITUTE OF ADVANCED MOTORISTS LIMITED (THE) (Limited by guarantee)

Report of the Council and Financial Statements for the year ended 31 March 2024

Company No. 562530 Registered Charity Nos: 249002 (England & Wales) and SC041201 (Scotland)

INSTITUTE OF ADVANCED MOTORISTS LIMITED (THE)

Contents

Report of the Trustees

Reference and Administration
-
Patron, President, Vice President, Council - Trustees, and Senior Leadership Team
2
-
Company Secretary and Information, and Professional Advisers		 2
Structure, Governance, and Management
-
Objects		 3
-
Public benefit		 3
-
Primary activities		 3
-
Strategy		 4
-
Constitution & Membership		 5
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Corporate Governance		 5
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Decision Making, Committees, and IAM RoadSmart groups		 6
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Risk management and internal control		 6
Strategic Review
-
Review of Activities and Achievements		 8
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Future Activities		 9
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Financial Review		 11
Statement of Trustees’ Responsibilities 13
Independent Auditor’s Report 14
Group Statement of Financial Activities 17
Balance Sheets 18
Group Cash Flow Statements 19
Notes to the Financial Statements 20 – 34

20 – 34

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INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

REPORT OF THE COUNCIL

Reference and Administration

The Council (trustees who are also directors of the company for the purposes of the Companies Act) present their annual report and the audited financial statements for the year ended 31 March 2024 of the Institute of Advanced Motorists Limited (‘IAM’), (Companies House Registered number: 562530; Registered Charity Numbers 249002 (Charity Commission, England and Wales) and SC041201 (Office of the Scottish Registered Charity Regulator)).

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”) (effective 1 January 2019).

The names of the Patron, President, Vice President, Council - Trustees, and Senior Leadership Team who served during the year and since the year end are shown below.

Patron

HRH Prince Edward, The Duke of Kent

President

Nigel Mansell CBE

Trustees

Membership

Stuart Malcolm Donald QPM Chairman (1-3) Jeffrey Willcocks Vice Chairman (resigned 05 November 2023) Nicholas John Anthony Stein Vice Chairman (effective from 07 November 2023) Elizabeth Marguerite Coyle-Camp (Resigned 18 July 2023) Nicholas David John Lomas (3 – Chair) Victoria Ann Milford (2 – Chair) Tom Kelman (1 – Chair) Mark Armitage (Appointed 28 September 2023) Angela Bell (Appointed 28 September 2023) Rupert Newman (Appointed 28 September 2023) Mark Powell (Appointed 28 September 2023) Sarah Whiteside-Jones (Appointed 28 September 2023)

Committees:

  1. Finance & Audit Committee 2. Remuneration Committee

  2. Nominations Committee

Senior Leadership Team

Antony Kildare Chief Executive Nicholas Lyes Policy & Standards Director Andrew McLachrie Finance Director Kat Hyde Marketing, Communications & Membership Director Nicola Smith People & Culture Director Simon Boyd Commercial & Operations Director (resigned September 2023)

Company Secretary

Andrew McLachrie

Registered Office

1 Albany Place, Hyde Way, Welwyn Garden City, Hertfordshire, AL7 3BT

Professional Advisers

Statutory Auditor Bankers Investment Advisors Investment Managers

Crowe U.K. LLP, 55 Ludgate Hill, London, EC4M 7JW HSBC Bank plc, 60 Queen Victoria Street, London, EC4N 4TR Portfolio Management Consultancy Limited (PMCL), 100 Liverpool St, London, EC2M 2AT J M Finn & Co Limited, 4 Coleman Street, London, EC2R 5TA Rathbone Investment Management, 8 Finsbury Circus, London, EC2M 7AZ Ruffer LLP, 80 Victoria Street, London, SW1E 5JL

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INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

REPORT OF THE COUNCIL (continued)

Structure, Governance and Management

Objects

IAM’s objects are to improve the standard of driving and the promotion of road safety for the public benefit, in particular by (but not limited to) the operation of an advanced driving and motorbike riding test.

Public benefit

The trustees have considered the requirement for IAM’s aims to be demonstrably for the public benefit. In doing so, the trustees have had regard to the Charity Commission’s guidance on public benefit.

Primary activities

Formed in 1956 as the Institute of Advanced Motorists, IAM RoadSmart as we know it today, grew into the UK’s largest road safety charity.

With over 60 years’ experience educating and upskilling drivers and riders, the charity’s purpose has been making roads safer for all. Course fees and membership, in addition to a commercial offering have been key in generating income, but the current economic climate and membership demographic poses some challenges and have highlighted the need to change and diversify.

Our federated group structure was developed to support the delivery of services; this provided a semi-autonomous relationship for local groups that drove up membership and raised funds for the charity. The charity’s membership peaked in the 1990’s but has since declined highlighting a need to change our membership offering and the systems and processes used to deliver it, as well as diversifying our income streams to enable to charity to maximise its contribution.

Where we are now

IAM seeks to achieve its objectives and fulfil its public benefit requirement by funding and evolving the following activities:

  1. Promoting the IAM RoadSmart brand as the UK’s leading road safety charity and advocate, helping to improve driving and riding skills through courses and coaching.

  2. IAM’s Advanced driving test was launched in 1956 and an advanced test for motorcyclists was introduced in 1976. Through programmes delivered by IAM’s volunteer network, the skills taught and tested are constantly updated for the ever-changing features and challenges of the UK’s roads and vehicle technologies. By improving awareness of hazards and risk and teaching best practice techniques, IAM reduces the likelihood that drivers and riders will put themselves (and others) into a position of danger through error, omission or poor behaviour on the roads.

  3. IAM RoadSmart Groups exist throughout the UK, with volunteers delivering support and advice to drivers and riders seeking to improve their on-road skills, many of whom go on to pass the Test. Since inception, IAM has awarded advanced status to over 500,000 drivers and riders.

  4. IAM continues to serve the demand from professional driving organisations seeking to enhance their internal driver training programmes by accrediting them with the Advanced Driver qualification.

  5. Lobbying government and undertaking road safety research, together with publicity using social and broadcast media and the Press as well as direct communication to IAM RoadSmart Members are important features of IAM’s work to promote road safety. Regular tips, blogs and press releases are also used to help all drivers and riders improve their skills as we seek to “inform and influence” on road safety issues. RoadSmart magazine continues to be the communication valued by Members as their primary source to reinforce IAM RoadSmart Members’ knowledge and awareness of road safety issues.

  6. IAM RoadSmart provides a range of services for businesses whose employees’ roles involve driving cars, vans or motorcycles. These solutions enable employers to implement a comprehensive risk management programme, supporting road safety via driver training and ensuring compliance with health and safety law:

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INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

REPORT OF THE COUNCIL (continued)

Structure, Governance and Management (continued)

Through IAM Driver Retraining Academy (DRA), the IAM Group offers retraining for offenders through delivery of drink-drive rehabilitation scheme courses.

Through our strategic partner, we also offer a branded insurance offer to our members. This offer introduces members to insurers who may see our members as lower risk. We receive commission for policies taken out.

We offer several Skills Day activities across the UK – these events provide members and the wider public the opportunity to practice their driving and riding techniques in a controlled area, with the opportunity to learn new skills.

Council acknowledges that the success of IAM’s activities is dependent on the goodwill and commitment of volunteers operating within IAM RoadSmart Groups. Council expresses its appreciation for the commitment and dedication of those volunteers, without which IAM would be unable to deliver their courses – thank you.

Strategy

With support from the Board of Trustees, we have continued to progress with the delivery of our three-year plan, focusing on growing our reach and improving our communications and messaging to align with our five strategic pillars, as follows:

  1. Grow the brand name and corporate identity to be recognised nationally, with an increased presence and authoritative voice in the policy and campaigning space. We will:

  2. Place road safety at the heart of all we do

  3. Elevate our policy and campaigning activity to make impact on road safety issues in the UK.

  4. Address challenges such as static road death numbers and the evolution of on-road and in-vehicle technology

  5. Increase skills development, knowledge share, competency, and on road confidence through education and coaching. We will:

  6. make road safety skills and education up to date, relevant and accessible to all

  7. diversify and refresh educational tools and products to engage existing and new audiences.

  8. reflect new road safety challenges, embracing new learning styles and technologies. engaging with those who put the most drivers and riders on the road and those who use the road for a living.

  9. Develop a broad, diverse, and inclusive community of passionate road users across the UK. We will:

  10. support an increasingly diverse community of road safety experts across the United Kingdom

  11. be inclusive, recognising those that have passed the advanced test demonstrate the highest level of skill that is up-todate and relevant, as well as those that choose not to take the advanced test but still have a passion and interest in road safety

  12. provide support to enable our community to ensure it is sustainable and that it can continue to deliver key services.

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INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

REPORT OF THE COUNCIL (continued)

Structure, Governance and Management (continued)

  1. Promote a well led, progressive, ethical charity that lives and breathes by its culture and behaviours. We will:

  2. be well-run and sustainable, supported by effective leadership, governance, systems, and infrastructure

  3. monitor effective stewardship of resources and assets to ensure the charity have an impact on improving

  4. • road safety.

  5. work to mitigate any negative impacts we may cause.

  6. Embrace being digital to the core. Enabling and simplifying our service and offerings, growing our reach and enriching the community experience. We will:

  7. transform using best in show technology to support our growth and diversification ambitions and

  8. continuously measure our progress and deliverables

  10. work with IT experts, providers, and originators to adopt and apply tried and tested, ‘plug and play’

  11. market solutions in delivering for our customers and members.

Constitution & Membership

IAM was established on 10 March 1956 as a company limited by guarantee and is governed by a Memorandum and Articles of Association, which were adopted by Special Resolution on 20 February 2009 and amended by Special Resolution on 18 November 2009.

IAM operates the Advanced Driver and Rider Tests (“Test(s)”). Individuals who successfully pass these Tests (or are eligible for exemption) are IAM RoadSmart Members (or “Members”) subject to payment of membership subscriptions. Prospective members who have not yet passed the Tests are classed as Associate Members (or “Associates”). IAM’s Memorandum and Articles of Association provide that the following matters are subject to the determination of IAM RoadSmart Members at Annual or other General Meetings:

Subsidiary Undertakings

IAM’s three subsidiary undertakings that were active during the year were as follows:

Corporate Governance

Appointments to Council

The Council consists of such IAM RoadSmart Members and suitable individuals as shall from time to time agree on the invitation of the Council, to serve as a trustee on the Council. The Nominations Committee of the Council is responsible for identifying potential new trustees and making recommendations to Council. New trustees who join the Council during the year are required to offer themselves for election at the next Annual General Meeting. New trustees are selected based on the skills, expertise and experience they bring to the Council. A role definition for trustees is in place.

Induction and training

All new trustees receive an induction briefing, which includes their general charity and company law responsibilities, IAM’s Memorandum and Articles of Association and the functions of IAM’s Council, committees, and management. Training for trustees is provided when required, including updates on best practice in charity governance.

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INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

REPORT OF THE COUNCIL (continued)

Structure, Governance and Management (continued)

Trustees are also encouraged to seek guidance and support from the Charity Commission website which offers free guidance and learnings to trustees on key aspects of their role.

Rotation of trustee appointments

Jeff Willcocks resigned from the Council on 5 November 2023.

Charity Governance Code

Trustees on the Council are committed to their governance responsibilities, aiming to maintain a framework that is effective, compliant, and efficient. This year, IAM assessed internal financial controls using the CC8 checklist for charities. This was reviewed by the Trustees to ensure they are satisfied with the current assessment.

To support the CC8, we are compiling a comprehensive list of policies that aligns with its elements, providing Trustees with a complete overview. This list will also clarify which policies fall under the Trustees' review requirements. This effort is part of a broader review of our policy management and governance to ensure the adoption of best practices in this area.

Decision Making, Committees, and IAM RoadSmart Groups

The Council seeks to ensure it has an appropriate mix of skills and experience to discharge its responsibilities effectively and in line with good governance practice and is assisted in its work by three committees to which certain powers and responsibilities are delegated. The members of the committees are set out on page 2 of this report.

The Finance & Audit Committee is responsible for ensuring financial reporting obligations are met for IAM and its subsidiaries (together “the IAM Group”). This involves ensuring the statutory financial statements for the IAM Group are properly audited and that accepted recommendations of the auditors are implemented. Whilst also establishing, maintaining, monitoring, and reviewing financial controls throughout the IAM Group, to safeguard its assets and ensure its financial integrity. The Committee also confirms that IAM’s investment policy is appropriate and monitors the performance of those investments and confirms IAM’s reserves policy is appropriate. The Finance and Audit Committee meet formally once a quarter, with additional meetings as needed.

The Remuneration Committee and remuneration policy approves the remuneration of IAM’s Senior Leadership Team and monitors the overall remuneration policy across the IAM Group. The Senior Leadership Team determines the salaries of all other executive staff within budget parameters set by Council. The remuneration Committee meets formally 3 times a year, with additional meetings as needed.

The Nominations Committee is tasked with assessing the structure and composition of the Council, specifying requirements for trustee and senior executive positions, identifying, and assessing candidates and making recommendations to the Council regarding appointments to those roles.

The day-to-day management of the IAM Group is delegated by the Council to the Chief Executive and the Senior Leadership Team listed on page 2.

IAM RoadSmart Groups are geographically based independent charities or other entities that are affiliated to IAM subject to the Group Rules which are maintained by IAM. Accordingly, the IAM Group’s consolidated financial statements do not incorporate the financial statements or activity of IAM RoadSmart groups.

Risk management and internal control

The IAM Group has a formal process for assessing risks and implementing risk management strategies. This involves identifying risks and prioritising them in terms of likelihood of occurrence and potential impact, together with devising and implementing mitigations as considered appropriate. Risk Registers are maintained by the Compliance and Governance Manager with each risk owner required to review risks allocated to them on a quarterly basis. Additionally, each Director is required to present the risks within their area to the Senior Leadership Team in turn, on a monthly rolling basis. This allows the Senior Leadership Team to have oversight of all risks. Risks identified as strategic in nature are presented to the Finance & Audit Committee as a standing agenda item, and then the Council meeting for further consideration by Trustees.

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INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

REPORT OF THE COUNCIL (continued)

Risk Management of risk
Fluctuations in the value of IAM's
investment portfolio		 Fluctuations in the value of IAM RoadSmart’s investment portfolio continue
to be monitored alongside our investment advisors. Given the changing
dynamic of the wider local and global economy, we will be regularly
reviewing our investment approach to ensure that it remains appropriate for
now and for the future to protect the charities assets.
A fuller review of our approach is scheduled took place in August 2024 via
the Finance and Audit committee, supported by our investment advisors.
This review will consider the wider economic climate, as well as ensuring
our funds are best positioned moving forward to match both our liquidity
needs, but also the ensure the investment fund continues to perform in-line
with our investment policy. The review should help to further mitigate the
risk associated with wider fluctuations in the investments value.
Loss and closure of underperforming
Groups		 Groups are critical to the delivery of our Advanced Driver/Rider Courses and
our organisational objectives; therefore, a multitude of activity has taken
place to assess and monitor the performance of all Groups.
A Group analysis was undertaken in March 2024 to gain a better
understanding of Groups individually and collectively, although the criteria
for what is deemed a ‘good Group’ is still to be determined.
The analysis highlighted issues such as current Committee member numbers
and Group succession planning which is being addressed with groups by
Area Service Delivery Managers on a 1-2-1 basis. How a group is run and
proactive/reactive communication channels with IAM RoadSmart/Area
Service Delivery Managers (ASDMs) continue to be monitored.
Data obtained in the analysis, such as number of Observers and Members,
has proved critical for highlighting potential Groups for merging. External
guidance on Group mergers has been reviewed and updated by Andrew
McLachrie (Finance Director and Company Secretary) and Amanda Smith
(Head of Field Service Delivery).
The Group Handbook is currently being reviewed to ensure that IAM
RoadSmart possess additional and appropriate governance over Groups, as
well as providing transparency on processes and what is expected of them.
The revised Group Handbook is planned to be implemented by December
2024.
Adverse fluctuations in income/sales A recruitment strategy specifically targeting locations that present both a
significant geographical gap of available ADIs and an above average level of
requests to deliver on-road training is in place.
IAM RoadSmart are seeking a closer relationship with those ADIs who
choose to benefit from working with the IAM Group.
Membership Demographic Membership numbers have shown to be on a downward trajectory. The
current membership numbers were largely made up of an ageing
demographic, notably between 60 and 79 years of age, which had resulted
in a higher attrition rate than expected. ‘Personal reasons’, health issues and
old age were noted as some of the top reasons for individuals cancelling
their IAM RoadSmart membership. Should this trend continue without
replenishing the membership community, there is a growing risk of income
loss. The Head of Membership has shared that activities were underway to
improve the membership value proposition and open up new opportunities
for individuals to support the charity

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INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

REPORT OF THE COUNCIL (continued)

Strategic Report

During the year ended 31 March 2024, the IAM Group did not carry out any activities to raise funds from the public.

Strategic Review of activities and achievements

Our activities progressed during the year ended 31 March 2024. Some of the most notable achievements in the year can be summarised into these headings:

Retention

Growth

The progress made in the IAM Group by company may be summarised as follows:

Institute of Advanced Motorists Limited

We finished the year with 74,674 members (2023 – 74,795).

2,896 associates passed their Advanced tests this year (2023 – 2,871).

We ended the year with 3,556 qualified Observers (2023- 3,027).

RoadSmart Magazine continues to develop, and readers feedback and engagement continues to increase with each issue.

Our newsletters, members’ polls and communications regularly attract opinions which are used by our Policy & Research and Marketing & Communications teams. We are drawing on the opinions, views and experiences from members and other sources to develop and strengthen new campaigns. By doing this we continue to create engaging, and our social media channels.

One of our key areas of support is influencing key decision makers and our activities and progress in this area are summarised below.

Research and Lobbying

IAM RoadSmart, in partnership with others has successfully lobbied Government to change regulations allowing motorcycles to use bus lanes, a move that will improve the safety of our motorcycle community and the safety of all motorcycle users. In 2023/24, we developed a new ‘Member Opinion Panel’, giving members a say in Government policy with more than 5,000 members signing up.

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INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

REPORT OF THE COUNCIL (continued)

We have increased our research and campaigning on graduated driver licensing, issues impacting younger drivers, drug-driving, smart motorways and handheld mobile phone use. We continue to represent our members at the highest Government level within the Department for Transport, National Highways, Transport Scotland and have met with Ministers in Wales and Northern Ireland. We continue to publish our annual Road Safety Report.

Key policy updates and representation in the media

During the year, IAM RoadSmart has developed a suite of ‘policy sheets’ (statements) which are now available on our website and have been prepared with our members views in mind. This approach has enabled more consistent messaging to assist us to inform policymakers through our membership of major Government panels in an advisory capacity.

IAM RoadSmart's share of voice in the media has increased significantly, more than doubling our mentions in the media compared to last year. This has included high-profile interviews on national broadcasters enabling us to showcase the work we do to a wider audience.

IAM Drive & Survive Limited (“Drive & Survive”)

Our commercial offer through D&S continues to show promise. During 23/24, we enhanced our operational capability and effectiveness to ensure we can accommodate the anticipated growth in this key area. We are seeing much greater interest in our offer from a wider spectrum of commercial entities. Whilst we did not necessarily see that flow through to in-year bookings, we will see the benefit as we move into 24/25.

IAM Driver Retraining Academy Limited (“DRA”)

Drink Driver Rehabilitation Scheme remains a vital part of our offer. The scheme continues to deliver promising volumes, and we have also started to work on enhancing our geographical coverage throughout Wales, Scotland, and England.

We continue our programme of activity to ensure we remain at the forefront of the scheme, and ensure courts and referrals continue to grow.

Institute of Advanced Motorcyclists Limited

The company continues to manage the IAM Group’s arrangements with insurance brokers and derives its income from commissions on introductions to motor insurers and other bodies. Commission income totalled £296k to the year-end 31 March 2024 – representing a 2% decrease on 22/23. We recognise that the current insurance market is proving challenging, with insurance premiums increasing year on year.

Future activities

We focused year two of the three-year strategy on being ‘A year of Transformation’. In year three of the three-year strategy (2024/2025) we will focus on ‘A Year of Growth’ for IAM RoadSmart. Clear KPIs have been established to help measure performance as part of a Performance Management Framework, with regular review.

Membership retention, recruitment, fundraising

With a Head of Fundraising in post, we will be identifying and developing fundraising opportunities that will further enhance how we invest in road safety education, and ultimately grow our reach and awareness of the IAM RoadSmart brand and activities as a leading and influential road safety charity in the UK

Our existing members will see change as we work to embed increased member value; the focus for us is about improving the member experience, giving members more choice and a personalised experience as part of their membership fees. Promotion of any changes will be shared with our members, as well as with the wider community across nations to grow our reach.

New membership tiers and products

Whilst we focus on adding value for our current members to the existing membership model, activity is underway to explore what the future looks like. It is notable that membership is in decline across membership organisations. We are

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INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

REPORT OF THE COUNCIL (continued)

aware that the general public are absorbing content and information in different ways. As a result, educational content is a core focus for us, and we will be looking at how this can help grow our reach and tap into new audiences across all four nations.

Diversifying product ranges

By March 2025 all Advanced Driving and Riding courses will be delivered by National Observers; the process to achieve this began on the 31 March 2023. Adopting one standard of observing will create a clear and logical process for our volunteers, customers, and partners, with our focus being on ‘competency assessment, not experience’. We also plan to create new on-road courses, assessments, and online training to upskill members of the public, IAM members and those who drive for work, with delivery expected throughout 2024 and into the following financial year.

We are reviewing delivery on regional activity, to build our brand profile and presence in each nation.

Commercial activity

We continue to be active on several commercial fronts:

We continue to see, and expect to see, growth in these areas over the coming years.

Volunteer recruitment

We are working hard to continue to grow and diversify our pool of volunteers. We have over 5,000 volunteers in roles currently and are grateful for the work they all do.

Investing in Volunteers

The formal assessment against the standard is scheduled for late 2024 and a development plan will be in place before further assessment in 2027.

Campaigns, Policy, PR

There will be continued focus on policy and campaigning; this work will continue to elevate our brand and raise awareness of our purpose as a national road safety charity; we will be looking to launch new campaigns focusing on younger drivers, graduated driver licencing, motorcyclists and improving driving behaviours. We will build on existing alliances and develop new partnerships to lobby the Government for a new road safety strategy which includes a focus on driver skills. We want to build new relationships with recently elected MPs, building our arguments from the ground upwards and to remain an influential voice at Government roundtables.

We will increase our media reach and become a trusted voice in the sector, standing up for members and amplifying our core purpose to attract new audiences. This will mean stepping outside of our comfort zones but having evidence and research behind us to articulate the views of IAM RoadSmart members. Our goal is to be the ‘go-to’ organisation for media to comment on road safety nationally, which has not always been the case.

Events development

We are continuing to develop the annual events schedule. We are reviewing how event delivery can become a more productive revenue generating stream. This year ahead will also see us continue evolving digital member events that deliver topical and value-added content to the community as part of their membership.

Website transformation

This project will be developed and launched in the coming year, and full details will be shared when available. The website transformation will be a key component of our ‘Digital to the core’ strategic pillar; it will also enhance the member, volunteer and future member experience, creating a professional front door access and improving the user experience.

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INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

REPORT OF THE COUNCIL (continued)

Review of finances

The Group Statement of Financial Activities on page 18 shows a net movement in funds of £666K deficit (2022-2023 £1.77m deficit). This headline deficit may well appear of concern; however, it was caused by 3 key elements, two of which were known about and part of the organisation’s transformation:

The overall deficit remains at £666k – but the vast majority of that loss is for known reasons and contributors. The Balance Sheets on page 19 show that the net assets of the Group have decreased by £666k from £7.259m to £6.593m. This movement was contributed to by an operating deficit in the year of £463K, Transformation spend of £49K and investment losses of £203k. All funds held by the Group at year end were unrestricted and undesignated.

Reserves

The Finance and Audit Committee conducted a full review of our reserves policy during the year which was ratified in March 2023 by Council. The outcome of that review provided that the appropriate minimum level of reserves at £4.7m for the organisation to hold is between 6 and 9 months of operating expenses, together with any existing liability or specifically ring-fenced funds. Reserves are held for several reasons – in the main to support operating activity should there be a catastrophic impact on income (e.g. pandemic), to service any long-term commitments, or any existing known liabilities.

In light of the revised policy, the Finance and Audit Committee consider it prudent to hold 9 months of operating reserves in the current economic climate. Additionally, the necessary funds ring-fenced for delivery of the 3-year plan should also be held.

As at 31 March 2024, free reserves stood at £6.59m – this represents approximately 9 months of operating expenses plus funds to deliver the 3 year plan.

Investment & Investment policy

IAM appointed an independent investment advisor during 2022/23. PMCL are a regulated Investment Advisor who specialise in the Charity and Not-For-Profit sector. They were appointed after an external tender process covering multiple advisors.

Following PMCL’s appointment, a review of our Investment Policy was also conducted in-line with our reserves policy. The outcomes from that review have resulted in an adjusted investment Policy that was ratified at the June 2023 Council Meeting.

IAM’s investment policy is aimed at securing the best financial return from its investments with an acceptable level of risk through engaging reputable and experienced external investment managers with specified investment mandates.

The performance of each fund manager is continuously monitored by PMCL and reported through to Finance and Audit Committee and Council on a regular basis. Any deviations in performance are investigated by PMCL and appropriate action advised.

Income is not drawn from the investment portfolios on a regular basis and is instead reinvested so that the portfolios have a total return (combined income and capital return) objective, with access to drawdown funds to finance operational needs as and when required.

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INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

REPORT OF THE COUNCIL (continued)

The market value of IAM’s investment portfolios at 31 March 2024 was £6.70m (2023: £7.18m) held with three investment managers, JM Finn & Co, Ruffer LLP, and Rathbone Investment Management. All funds are invested to align with our Investment Policy.

Going Concern

The Trustees have assessed the ability of IAM and the IAM Group to continue as a going concern. That assessment included consideration of the recent trading performance, the level of investments held as reserves and the associated risk profile of those investments, the key risks faced by the IAM Group as described under ‘Risk management and internal control’ on page 7, together with the underlying budgets for 2024/25 and a roll forward of the budget for 2024/25 using prudent assumptions.

The trustees’ consideration of going concern also considered a stress test utilising the potential for circumstances which although unlikely would have a significant impact. Those unlikely circumstances included significant reductions in income from membership, other courses and assessments, and commercial activities, while assuming that operating and capital expenditure was maintained at budgeted and forecast levels, and the potential for investment portfolios to fall by up to 50%. The stress test indicated that the going concern basis of accounting would remain appropriate as at the date of approval of the financial statements.

The Trustees’ assessment is that IAM and the IAM Group will remain going concerns for a period of at least 12 months from the date of approval of this report and of the financial statements.

Related parties

None of the trustees receives remuneration or other benefit from their activities as a Trustee with IAM. Any connection between a Trustee or member of the Senior Leadership Team of IAM and a contractual party must be disclosed to the Council. During the year under review, no such related party transactions were reported. Statement as to disclosure of information to the auditor.

In so far as the trustees are aware:

Auditor

Crowe U.K. LLP has indicated its willingness to continue in office.

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INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

REPORT OF THE COUNCIL (continued)

Statement of trustees’ responsibilities

The Trustees (who are also directors of IAM for the purposes of company law) are responsible for preparing the Report of the Council 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 charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

The Report of the Council (including the Strategic Report) was approved on behalf of the Council by:

Stuart Malcolm Donald QPM Chairman

1 Albany Place Hyde Way Welwyn Garden City Hertfordshire AL7 3BT

25 September 2024

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INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

Independent Auditor’s Report to the Members and the Trustees of

The Institute of Advanced Motorists Limited

Opinion

We have audited the financial statements of the Institute of Advanced Motorists (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 31 March 2024 which comprise the Group Statement of Financial Activities, the Group and Charity Balance Sheets, the Group Cash Flow Statement and 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company and the group 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 trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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

14

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

Independent Auditor’s Report to the Members and the Trustees of

The Institute of Advanced Motorists Limited

(Continued)

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 14, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011, and The Charities and Trustee Investment (Scotland) Act 2005, together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK

15

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

Independent Auditor’s Report to the Members and the Trustees of

The Institute of Advanced Motorists Limited

(Continued)

operations were General Data Protection Regulations, Health and Safety legislation, taxation legislation, and employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance and Audit Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Vincent Marke

Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor

London

Date: 25/10/2024

16

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

GROUP STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024 (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

GROUP IAM
Note 2024
£000
2023
£000		 2024
£000
2023
£000
Income from:
Donations and legacies
Subscriptions (including Gift Aid) 3,628
3,474		 3,628
3,474
Other income 3.1 35
24		 35
24
Charitable activities
Test fees
Other trading activities
Training and related services
Investments
Total income
Expenditure on:
Raising funds
Fundraising and publicity
Training and related services
Charitable activities
Research and advocacy
Membership services
Tests
Quality assurance
Total expenditure
Net (expenditure) / income
Net (loss)/gains on listed investment portfolio
Net (Loss)/Income for the year
Net movement of funds in year
Balances brought forward at 1 April
Gift Aid Profits from Trading Subsidiaries
Balances carried forward at 31 March		 3.2
10
3.4
3.4
3.4
3.4
3.4
3.4
3.4
9
4		 701
503
1,979
1,946
178
222		 701
503
451
-
178
222
6,521
6,168		 4,993
4,223
979
807
1,711
2,292		 979
807
491
660
2,690
3,099		 1,470
1,467
558
549
1,974
1,769
703
1,176
1,059
627		 558
549
1,974
1,769
703
1,176
1,059
627
4,294
4,120		 4,294
4,121
6,984
7,219		 5,764
5,588
(463)
(1,051)
(203)
(718)		 (771)
(1,365)
(203)
(718)
(666)
(1,769)
(666)
(1,769)
7,259
9,028
-
-		 (974)
(2,083)
(974)
(2,083)
5,478
7,561
313
-
6,593
7,259		 4,817
5,478

The above results are from continuing activities and there are no other gains and losses except as stated above.

The notes on pages 20 to 34 form part of these accounts.

17

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

COMPANY NUMBER 562530

BALANCE SHEETS AS AT 31 MARCH 2024

Group Group IAM IAM
Note 2024
£000		 2023
£000		 2024
£000		 2023
£000
Fixed assets
Intangible assets
7
Tangible assets
8
Investments
9
Current assets
Stocks
11
Debtors
12
Cash at bank and in hand
Current liabilities
Creditors: amounts due within one year
13
Net current assets/(liabilities)
Total assets less current liabilities
Net assets
Unrestricted funds
General fund
14		 254
318
254
318
26
47
26
47
6,566
7,046
6,696
7,176
6,846
7,411
6,976
7,541
27
50
7
47
753
795
2,113
1,486
624
641
433
520
1,404
1,486
2,553
2,053
(1,657)
(1,638)
(4,712)
(4,116)
(253)
(152)
(2,159)
(2,063)
6,593
7,259
4,817
5,478
6,593
7,259
4,817
5,478
6,593
7,259
4,817
5,478
6,593
7,259
4,817
5,478

The financial statements on pages 20 to 34 were approved by the Council on 25 September 2024 and authorised for issue and signed on its behalf by

_____ Stuart Malcolm Donald Trustee

The notes on pages 20 to 34 form part of these accounts.

18

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

GROUP CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024

2024 2024 2023 2023
Note £000 £000 £000 £000
Cash flows from operating activities:
Net cash generated in operating activities
17
Cash flows from investing activities:
Payments to acquire intangible fixed assets
7
Payments to acquire tangible fixed assets
8
Net drawdown from/(additions) to investments
9
Movement in cash investments
9
Listed investment income
10
Bank interest received
10
Net cash provided /(utilised) by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at start of the year
Cash and cash equivalents at end of the year		 (23)
9
234
(43)
174
5		 (373)



356		 (37)
(15)
592
88
221
1		 (973)
851

(17)
641		 (122)
763
624 641

The notes on pages 20 to 34 form part of these accounts.

19

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2024

1 General information

The Institute of Advanced Motorists Limited (IAM) is a company limited by guarantee incorporated in England and has no share capital. The liability of members in the event of winding-up is limited to 25p per member.

The address of IAM’s registered office and principal place of business is 1 Albany Place, Hyde Way, Welwyn Garden City AL7 3BT.

IAM’s and the IAM Group’s principal activities are detailed in the Report of the Council.

2 Accounting policies

(a) Basis of accounting and going concern

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)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. A separate statement of financial activities for IAM is not presented as permitted by the SORP.

Monetary amounts in these financial statements are rounded to the nearest £1,000 except where otherwise indicated.

IAM meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The trustees assess whether use of the going concern basis of accounting is appropriate i.e., whether there are material uncertainties related to events or conditions that may cast doubt on the ability of the charitable company and the group to continue as a going concern. The trustees review forecasts and projections covering a period of at least one year from the date of approval of the financial statements in making that assessment. The trustees do not consider there are any such material uncertainties.

The trustees’ consideration of going concern also considered a stress test utilising the potential for circumstances which although unlikely would have a significant impact. Those unlikely circumstances included significant reductions in income from membership, other courses and assessments, and commercial activities, while assuming that operating and capital expenditure was maintained at budgeted and forecast levels, and the potential for investment portfolios to fall by up to 50%. The stress test indicated that the going concern basis of accounting would remain appropriate as at the date of approval of the financial statements.

Accordingly, the trustees consider that the going concern assumption remains valid.

(b) Basis of consolidation

The consolidated financial statements include on a line-by-line basis the financial statements of IAM and its subsidiary companies made up to 31 March 2024. Subsidiaries acquired during the year are consolidated using the acquisition method. Their results are incorporated from the date that control passes. The difference between the cost of acquisition of shares in subsidiaries and the fair value of the net assets acquired is capitalised as purchased goodwill and amortised through the income and expenditure account over an estimated useful economic life.

(c) Functional and presentational currencies

The consolidated financial statements are presented in sterling which is also the functional currency of the Group.

20

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2024

2 Accounting policies (continued)

(d) Goodwill

Goodwill (representing the excess of the consideration given over the fair value of the separable net assets acquired) arising on business combinations in respect of acquisitions is capitalised and amortised by equal annual instalments over its estimated useful life.

Goodwill is reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the goodwill may not be recoverable. If any such indication exists, the asset’s recoverable amount is estimated, and an impairment loss recognised whenever the carrying amount of the asset or its income generating business exceeds its recoverable amount. Impairment losses are recognised in the Group Statement of Financial Activities.

(e) Turnover

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Subscriptions received in advance of their due date are treated as income received in advance. Otherwise, subscriptions are credited to the Statement of Financial Activities when received. Test fee income is credited to the Statement of Financial Activities when received. Provision is made at the year-end for the costs of outstanding tests for which the income has already been received. All other income is credited in the period to which it relates.

(f) Investments and investment income

Listed investments are included in the financial statements at the quoted bid price at the balance sheet date. Listed investment income is credited when received and realised gains and losses on disposals of listed investments are recognised on the date of disposal. Unrealised gains and losses on listed investments held at the year-end are recognised in the Statement of Financial Activities. Bank interest receivable is credited in the period to which it relates.

(g) Expenditure

Expenditure is recognised when a liability is incurred. Costs of generating funds are those incurred in the IAM’s Group’s fundraising and publicity activities, together with the trading activities of IAM’s subsidiaries. Charitable activities include expenditure associated with membership services, advanced driving and motorcycle tests, research, and advocacy and the “RoadSmart” magazine. Expenditure includes direct costs and support costs relating to these activities.

Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

Governance costs are allocated on the basis of the staff cost incurred on each activity. Support costs include central functions and the amortisation of goodwill and have been allocated to activity cost categories on a basis consistent with the percentage use of resources expended.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

(h) Fund accounting

The general fund is an unrestricted fund which is available for use at the discretion of the trustees in furtherance of the general objectives of the charity and has not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of any designated fund is set out in the notes to the financial statements.

Restricted funds are funds subject to specific restrictions imposed by donors.

21

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2024

2 Accounting policies (continued)

(i) Tangible fixed assets and depreciation

Tangible fixed assets with a cost in excess of £1,000 are capitalised at cost. Depreciation of fixed assets is charged at rates estimated to write off their cost or valuation less any residual value over the expected useful lives commencing with the year of acquisition. The following annual rates of depreciation have been used:

Leasehold improvements - 20% Computer equipment - 20% to 33⅓% Office equipment - 20%

(j) Intangible fixed assets – capitalisation, amortisation and impairment

Intangible fixed assets are capitalised at cost. Amortisation of fixed assets is charged at rates estimated to write off their cost or valuation (less any residual value) over the estimated useful lives commencing with the year of acquisition. The following annual straight-line rates of amortisation have been used: Computer software - 20%

Where factors, such as technological advancement, changes in the nature of the markets served by utilisation of intangible assets, or changes in market price indicate that the residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances.

Assets under construction are assets pending completion and transfer into the relevant fixed asset category. These assets are capitalised at cost and not subject to depreciation or impairment unless extraordinary circumstances have occurred which would require provision to be made.

All other assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired. If there is an indication of impairment, the recoverable amount of the asset is compared to the carrying amount of the asset. The recoverable amount is the higher of the fair value less costs to sell and value in use. If the recoverable amount is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount by recognising an impairment loss in the Statement of Financial Activities.

(k) Stocks

Stocks are valued at the lower of cost and net realisable value.

(l) Pensions

The cost to the group in respect of its pension arrangements is charged to the Statement of Financial Activities on a payable basis. These arrangements are with a defined contribution group personal pension plan, with defined employer contributions.

(m) Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling at the date of the transaction. Exchange differences are recognised in the Statement of Financial Activities.

(n) Operating leases

Operating lease rentals are charged to the Statement of Financial Activities on a straight-line basis over the lease term.

(o) Redundancy costs

Accruals for redundancy costs are recognised when there is a legal or constructive obligation at the balance sheet date.

(p) Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at fair value.

22

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2024

Accounting policies (continued)

(q) Critical accounting estimates and areas of judgement

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.

Critical accounting estimates and assumptions

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.

Critical estimates include:

(i) Assessment of the net realisable value of stock The net realisable value of stock is assessed by reviewing reports from the outsourced fulfilment houses that hold the stock, with a focus on identifying slow moving or obsolescent products and comparing expected sales price to cost.

(ii) Recoverability of debtors

Recoverability of debtors is assessed by reference to the aging of debts and the payment record of debtors. Provision is made where recoverability is assessed as doubtful following consultation with the relevant IAM relationship manager.

3.1 Other income

Government grant – Coronavirus Job Retention Scheme
Non-Government grants
Donations
Sundry income		 2023
2023
£000
£000
-
-
9
3
7
5
19
16
35
24

23

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2024

3.2 Trading activities of subsidiaries

IAM is a registered charity and derives income from its wholly owned trading subsidiaries. These subsidiaries are incorporated in Great Britain and their activities are described in note 9. All subsidiaries receive/pay interest at market rates on any indebtedness due from/to IAM. A summary of their results is shown below:

IAM Drive
Survive Limited
IAM Group
Services
Limited
Institute of
Advanced
Motorcyclists
Professional
Driver Services
Limited
IAM Driver
Retraining
Academy
Limited
Total
---------- ---------------------------- Year ended 31 March 2024 -------------------------------------------------------------
£000
£000
£000
£000
£000
£000
Turnover:
Sale of goods 667
-
296
-
565
1,528

Cost ofsales		 (475)
-
-
-
(293)
(768)
Gross profit 192
-
296
-
272
760
Administrative expenses (421)
-
(6)
-
(134)
(560)
Management charges 47
-
(22)
-
43
68
Operating (loss)/profit (182)
-
268
-
182
269

Interest payable to related parties		 (18)
-
-
-
5
(13)
Interestreceivablefrom related parties -
-
52
-
-
52
(Loss)/profit before and after taxation (200)
-
320
-
187
308
-------------------------------------- Year ended 31 March 2023 -------------------------------------------------
----------
£000
£000
£000
£000
£000
£000
Turnover:
Sale of goods 812
-
303
-
832
1,947
Cost ofsales (615)
-
-
-
(343)
(958)
Gross profit 197
-
303
-
489
989
Administrative expenses (95)
-
(4)
-
(59)
(158)
Management charges (221)
-
(29)
-
(310)
(560)
Operating (loss)/profit (119)
-
270
-
119
270

Interest payable to related parties		 (15)
-
-
-
-
(15)
Interestreceivablefrom related parties -
-
53
-
6
59
(Loss) before and after taxation (134)
-
323
-
125
314
Gift Aid Profits to parent -
-
(313)
-
-
(313)
(Loss) after Gift Aid Distribution (134)
10
125
-

The profits of UK subsidiaries, after group relief, are distributed to the charity and there is, therefore, no liability to corporation tax for those entities. Management charges represent reimbursement of costs incurred by IAM on behalf of the subsidiaries. There were £313K gift aid payments made to the charity in respect of financial year ended 2024 (whilst no gift aid payments were paid during the financial year ended 2023).

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2024

3.3 Net assets of subsidiaries

IAM
Drive &
Survive
Limited
IAM
Group
Services
Limited
IAM
Motoring
Trust
Trading
Limited
Institute
of Advanced
Motorcyclists
Limited
Professional
Driver
Services
Limited
IAM Driver
Retraining
Academy
Limited
Drive &
Survive
UK
Limited
IAM
Roadsmart
Limited
Total
----------------------------------------------------- 31 March 2024 -----------------------------------------------------------------
£000
£000
£000
£000
£000
£000
£000
£000
£000
Current assets 258
169
-
2,766
227
330
-
-
3,751
Creditors (1,719)
-
(55)
(133)
-
(5)
(218)
-
(2,130)
Net (liabilities)/assets (1,461)
169
(55)
2,633
227
325
(218)
-
1,621
----------------------------------------------------- 31 March 2023 -----------------------------------------------------------------
£000
£000
£000
£000
£000
£000
£000
£000
£000
Current assets 351
169
-
2,755
227
513
-
-
4,015
Creditors
Net (liabilities)/assets		 (1,612)
-
(55)
(129)
-
(375)
(218)
-
(2,389)
(1,261)
169
(55)
2,626
227
138
(218)
-
1,626

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2024

3.4 Total expenditure

3.4
Total expenditure
Direct staff
Other direct
costs
Support
costs
Total 2024
Total 2023
£000
£000
£000
£000
£000
Costs of raising funds
Membership subscriptions and Publicity 343
180
456
979
807
Training andrelatedservices 384
1,326
-
1,711
2,292
727
1,506
456
2,690
3,099
Charitable activities
Research and advocacy
Membership services
Tests
Quality assurance
Total expenditure		 280
65
213
558
549
315
995
665
1,974
1,769
11
335
357
703
1,176
640
137
282
1,059
626
1,247
1,531
1,517
4,294
4,120
1,974
3,037
1,973
6,984
7,219

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2024

3.5 Council expenses

Council expenses
2024
2023
£000
£000
Travel and subsistence:
Expenses reimbursed to 7 trustees (2023: 2 trustees)		 2
2

Expenses reimbursed to trustees in 2023/24 amounted to £2K. The cost of trustee indemnity insurance was included in IAM’s general insurance premium for the year and not separately identified.

3.6 Directors’ emoluments

No director/trustee received emoluments during the year (2023: £nil).

No pension payments were made in respect of directors/trustees (2023: £nil).

3.7
Employees whose emoluments exceed £60,000
2024
2023
Number
Number
The number of employees whose emoluments (including taxable benefits
but not employer pension costs) exceeded £60,000 during the year was as
follows:
£60,001 to £70,000
£70,001 to £80,000
£80,001 to £90,000
£90,001 to £100,000
£100,001 to £110,000
£110,001 to £120,000
£120,001 to £130,000
£130,001 to £140,000
£140,001 to £150,000
£150,001 to £160,000
£160,001 to £170,000
£170,001 to £180,000		 3
2
2
1
1
2
-
1
-
-
-
-
1
1
-
-
-
-
1
1
-
-
-
1
8
9

Pension contributions of £48,555 (2023: £44,030) were made during the year to a defined contribution scheme in respect of 8 employees (2023: 9 employees) included in the above analysis. The average number of employees was 68 (2023: 65).

3.8 Staff costs

3.8 Staff costs
2024
2023
£000
£000
Wages and salaries
Social security costs
Defined contribution pension costs		 2,804
2,779
302
303
107
129
3,213
3,211

During the year, the IAM Group incurred redundancy costs of £25,803 (2023: £176,735).

All group staff salaries are paid by IAM. IAM charges subsidiaries a management fee incorporating a charge for the utilisation of staff employed by IAM.

The total remuneration including employers’ national insurance of the current Senior Leadership Team (as per page 2) who are the key management personnel of the IAM Group was £632,475 (2023: £779,457).

27

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2024

4. Net expenditure for the year

Net expenditure for the year
2024 2023
£000 £000
Net expenditure for the year is stated after charging:
Depreciation 30 32
Amortisation of intangible assets 87 86
Auditor’s remuneration - audit fees current year 38 35
Auditors remuneration - audit fees - prior year 35 30
Auditors remuneration - tax services - current year 7 6
Operating lease payments - motor vehicles 72 65

5 Allocation of support costs

Management
Finance
Information technology
Facilities
Human resources
Governance (See note 6)		 Cost of
generating
funds
Membership
services
Tests
Quality
assurance
Research
and
advocacy
Total
2023
Total
2023
£000
£000
£000
£000
£000
£000
£000
67
97
52
41
31
288
278
116
169
91
72
54
502
626
132
192
103
82
62
571
685
94
137
74
58
44
407
367
16
24
13
10
8
71
62
31
45
24
19
14
134
172
456
664
357
282
213
1,973
2,190

Support costs are allocated using a combination of headcount and floor space applicable to the service provided.

6 Governance – Group and IAM

Direct costs:
Audit and accounting fees
Professional fees
Council costs
Salary costs		 2023
2022
£000
£000
75
39
30
66
1
1
28
66
134
172

28

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2024

7 Intangible fixed assets

Cost
At 1 April 2023
Additions
Transfer
Disposals
At 31 March 2024
Amortisation
At 1 April 2023
Charge
Transfer
Disposals
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023
IAM
Cost
At 1 April 2023
Additions
Transfer
Disposals
At 31 March 2024
Amortisation
At 1 April 2023
Charge
Transfer
Disposals
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 Goodwill
Computer
Software
Assets under
construction
(See note)
Total
£000
£000
£000
£000

2,927
446
120
3,493
-
16
7
23
-
-
-
-
-
-
-
-
2,927
462
127
3,516
2,927
248
-
3,175
-
87
-
87
-
-
-
-
-
-
-
-
2,927
335
-
3,262
-
127
127
254
-
198
120
318
-
446
120
566
-
16
7
23
-
-
-
-
-
-
-
-
-
462
127
589
-
248
-
248
-
87
-
87
-
-
-
-
-
-
-
-
-
335
-
335
-
127
127
254
-
198
120
318

Note: Assets under construction relates to the ongoing development of DARTS, (the Groups CRM system). These costs are transferred to computer software and amortised from the first month of going live once developments are released and go live.

29

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2024

8 Tangible fixed assets
Group
Cost
At 1 April 2023
Additions
Transfers
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge
Disposals
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023
IAM
Cost
At 1 April 2023
Additions
Transfers
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge
Disposals
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 Leasehold
Improvements
Computer
equipment
Office
equipment
Total
£000
£000
£000
£000
54
106
285
445
-
9
-
9
-
-
-
-
-
-
-
-
54
115
285
454
54
80
264
398
-
15
15
30
-
-
-
-
54
95
279
428
-
20
6
26
-
26
21
47
54
106
285
445
-
9
-
9
-
-
-
-
-
-
-
54
115
285
454
54
80
264
398
-
15
15
30
-
-
-
-
54
95
279
428
-
20
6
26
-
26
21
47

30

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2024

9 Fixed asset investments

Shares in subsidiary companies(see below)
Cost at 1 April 2023 and 31 March 2024
Listed investments
Market value at 1 April 2023
Net additions / (disposals)
Net (loss)/gain on investment assets
Market value at 31 March 2024
Cash
At 1 April 2023
Decrease in cash
At 31 March 2024
Shares in subsidiary companies(see below)
Cost at 1 April 2021 and 31 March 2022
Listed investments
Market value at 1 April 2021
Net acquisitions
Net gain on investment assets
Market value at 31 March 2022
Cash
At 1 April 2021
Increase/ (decrease) in cash
At 31 March 2022
£000
6,885
(234)
(203)		 Group
£000
-
6,448
118		 IAM
£000
£000
130
6,885
(234)
(203)
6,448
161
(43)
118
6,696
130
8,195
(592)
(718)
6,885
248
(88)
161
7,176		 IAM
£000
£000
130
6,885
(234)
(203)
6,448
161
(43)
118
6,696
130
8,195
(592)
(718)
6,885
248
(88)
161
7,176
161
(43)		 161
(43)
8,195
(592)
(718)		 8,195
(592)
(718)
6,566 6,696
-
6,885
161		 130
6,885
161
248
(88)		 248
(88)
7,046 7,176

9.1 Subsidiary companies

IAM Drive & Survive Limited (registered number 2019635) provides risk management and corporate driver training services.

IAM Driver Retraining Academy Limited (registered number 08248082) provides Drink Drive Rehabilitation Scheme courses.

Institute of Advanced Motorcyclists Limited (registered number 5889513) manages arrangements with brokers for the IAM Group’s exclusive insurance scheme for IAM RoadSmart members.

IAM owns 100% of the issued share capital of the above companies, all of which are incorporated and registered in England and have the same registered address as IAM. IAM also owns 100% of the issued share capital of Drive & Survive UK Limited, IAM Motoring Trust Trading Limited, Professional Driver Services LTD, IAM Group Services LTD, and IAM RoadSmart Limited, all of which are registered in England and none of which has traded during the year.

9.2 Listed investments

The cost of listed investments at 31 March 2024 was £6,566,137 (2023: £7,045,616). There were no underlying holdings with an individual market value in excess of 5% of the total market value at 31 March 2024 (2023: none).

31

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2024

10 Investment income

Income from investments
Bank interest receivable
11
Stocks
Goods for resale and consumables
12
Debtors
Amounts falling due within one year:
Trade debtors
Taxation recoverable
Amounts due from group undertakings
Other debtors
Prepayments and accrued income		 Group
2024
2023
£000
£000
174
221
4
1
178
222
Group
IAM
2024
2023
2024
2023
£000
£000
£000
£000
27
50
7
47
Group
IAM
2024
2023
2024
2023
£000
£000
£000
£000
287
290
96
11
117
140
117
140
-
-
1,563
984
4
1
4
1
345
364
333
350
753
795
2,113
1,486

Amounts due from group undertakings include amounts owed by trading subsidiaries to IAM, which carry interest at 2% above base rate. There are no other terms to these advances. No interest is charged on amounts due from dormant subsidiaries.

13 Creditors

Creditors
Amounts falling due within one year:
Trade creditors
Amounts due to group undertakings
Other taxation and social security
Accruals and deferred income
Other creditors		 Group
IAM
2024
2023
2024
2023
£000
£000
£000
£000
272
419
247
354
-
-
3,301
3,148
78
85
78
83
1,259
1,098
1,037
495
48
36
49
36
1,657
1,638
4,712
4,116

Deferred income represents payments in advance for Drink Drive Rehabilitation Scheme courses, Skills Days and onroad driver training.

Deferred income at 1 April 2023
Amount deferred in year
Amount released in year
Deferred income at 31 March 2024		 Group
IAM
£000
£000
735
159
1,342
400
(1,371)
(270)
769
564

32

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2024

14 General funds

At 1 April
Gain/(deficit) for the year
Gift Aid profits from trading
At 31 March		 Group
IAM
2024
2023
2024
2023
£000
£000
£000
£000
7,259
9,028
5,478
7,561
(666)
(1,769)
(974)
(2,084)
-
-
313
-
6,593
7,259
4,817
5,478

15 Taxation

The IAM is a registered charity and is exempt from corporation tax on its charitable income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

16 Operating leases – Group

The total future minimum lease payments under non-cancellable operating leases are as follows:

Amounts due:
Within one year
Between one and five years		 Rental of office premises
Motor vehicles
2024
2023
2024
2023
£000
£000
£000
£000
141
141
72
61
341
482
0
42
482
623
72
103

A variation to the existing lease for the office premises was entered into during the year which provides for an additional rent-free period from September 2021 through to June 2022.

17 Reconciliation of net expenditure resources to net cash outflow from operating activities

Net operating income/(expenditure)
- Investment income
Depreciation
Amortisation of computer software
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash inflow from operating activities		 Group
2024
2023
£000
£000
(397)
(1,051)
(178)
(222)
(575)
(1,273)
30
32
87
86
23
41
41
(94)
21
235
(373)
(973)

18 Reconciliation of net debt

The Group has no borrowings and has not entered into any finance leases. The analysis of the changes in net debt are summarised in the table below.


Cash at start of year
Cash flows
Cash at end of year		 Group IAM
2024
2023
2024
2023
£’000
£’000
£’000
£’000
641
763
520
629
(17)
(122)
(88)
(109)
624
641
432
520

33

INSTITUTE OF ADVANCED MOTORISTS LIMITED(THE)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2024

19 Contingent liabilities

There are no contingent liabilities for the year ended 31 March 2024 (2023: £nil).

The IAM is a member of a VAT group which also comprises certain subsidiaries: IAM Drive & Survive Limited. The IAM will be liable for any VAT amounts payable by these entities.

20 Capital commitments

At 31 March 2024, there were capital commitments contracted but not provided totalling £23,000 (2022: £37,000).

21 Financial instruments

Financial assets
Equity and debt instruments measured at fair
value through income and expenditure		 Group
IAM
2024
£000
2023
£000
2024
£000
2023
£000
6,448
6,900
6,448
6,900

Financial assets measured at fair value through income and expenditure include assets held in the listed investment portfolios (see note 9) for which there is a readily obtainable price quoted in an active market.

22 Related parties

Transactions between group entities for the year are detailed in note 3.2 and comprised management fees and interest receivable/payable on inter-company loans with IAM.

At 31 March 2024, IAM owed £285k (2023: £415k owed) to IAM Driver Retraining Limited

At 31 March 2024, IAM owed £228k (2023: £224k owed) to Professional Driver Services LTD. At 31 March 2024, IAM owed £1,563 from (2023: £1,398k owed from) IAM Drive and Survive Ltd. At 31 March 2024, IAM owed £176k (2023: £175k owed to) IAM Group Services Limited At 31 March 2024, IAM owed £2,612k (2023: £2,749k owed from) Institute of Advanced Motorcyclists Ltd

No other related party transactions were incurred in the period.

34