**CHARITY NO: 273828** 

## **BRITISH MOTOR SPORTS TRAINING TRUST** 

**FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022** 

British Motor Sports Training Trust 141 The Command Works Southern Avenue Bicester Heritage Bicester Oxfordshire OX27 8FY 

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**BRITISH MOTOR SPORTS TRAINING TRUST CONTENTS** 

||**Page**|
|---|---|
|**Charity Information**|**3**|
|**Trustees' Annual Report**|**4-11**|
|**Independent Auditors' Report to the Trustees of the British Motor Sports Training Trust**|**12-14**|
|**Statement of Financial Activities**|**15**|
|**Balance Sheet**|**16**|
|**Notes to the Financial Statements**|**17-22**|



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**BRITISH MOTOR SPORTS TRAINING TRUST CHARITY INFORMATION** 

**TRUSTEES** The trustees who served throughout the year 2022, and since, are as follows: 

||R K Parkin - Chairman|
|---|---|
||N E H Moffitt|
||H B Chambers|
||J Morris|
||D Ostrowski|
||P Foster|
||K E Traxton|
||Dr B J Shippey|
|**OTHER OFFICIALS**|A Dean-Lewis, MBE, Trust Secretary|
||C Murray, Treasurer|
|**CHARITY NUMBER**|273828|
|**CHARITY OFFICES**|141 The Command Works|
||Southern Avenue|
||Bicester Heritage|
||Bicester|
||Oxfordshire|
||OX27 8FY|
||Telephone – 01753 765000|
||Email - gensec@bmstt.org|
|**AUDITORS**|Haysmacintyre LLP|
||10 Queen Street Place|
||London EC4R 1AG|
|**INVESTMENT MANAGERS**|Investec Wealth & Investment Ltd|
||2 Gresham Street|
||London EC2V 7QP|
||And|
||Evelyn Partners|
||(formerly Smith & Williamson Investment LLP)|
||25 Moorgate|
||London EC2R 6AY|
|**PRINCIPAL BANKERS**|National Westminster Bank PLC|
||118 High Street|
||Slough|
||Berks|
||SL1 1JH|



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**BRITISH MOTOR SPORTS TRAINING TRUST TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## **Chairman’s Introduction** 

The past year provided a mix of opportunities and challenges for the Trust – opportunities as motorsport continued to recover and build its event activities after the lengthy period of downturn caused by the Covid pandemic, but also challenges caused by unexpected political and economic turmoil within the UK, and on a European (and indeed global) level by the war in Ukraine following the Russian invasion, which collectively had a profoundly negative effect on the financial markets and hence the performance of our investments during the year. 

Despite these uncertainties, the grant aid programmes of the Trust continued to be delivered and targeted wholly in line with the aims and objectives of the Trust, using three identified pillars of support, as detailed in the Trust’s agreed guideline document “How the Trust operates its grant aid schemes”. 

Together, these pillars of support very much surround the safety training of volunteer officials and the further enhancement of safety and rescue standards in our sport, and these areas remain continuing major strands in the times ahead, being entirely in line with the Trust’s Deed and its identified aims and objectives .  The Trust’s role is education and training, and its paramount priority is safety.  Motor sport could not exist without the thousands of volunteers, be they marshals, doctors and paramedics or rescue teams, and the training and accreditation of volunteers remains crucial to their own safety and that of participants and spectators.  Encouraging the wider adoption of on-line training where possible and appropriate is also seen as a cost effective way for the Trust to extend its range of Training Programmes. 

After careful advance research, the Trust embarked on a major new safety programme (as a ‘Pillar 3 -Special Project’) during the year, being supporting the purchase of 74 electronic display LED Safety Lights - which comply with the latest FIA (World Governing Body) standards - at certain identified UK racing circuits, which was undertaken alongside two other equal funding partners, namely Motorsport UK and the individual Circuit Operators.  Although these grants were only possible to be delivered at 8 venues during the year, their very visible safety advantage - particularly in poor light or inclement weather conditions to supplement flags displayed at manned volunteer marshals posts - was widely acknowledged.  This programme is currently paused for a review period to ensure that the maintenance and sustainability requirements for such equipment remain resilient and in line with its early promise before any additional partnership grants are considered. 

In its previously declared quest to make the Trust better known and more visible across, and even beyond, our own motorsport community, the Board of Trustees agreed the adoption of a new ‘working’ title for the Trust (as the ‘British Motorsport Trust’) and this was approved by the Charity Commission (without changing the current legal name of the Trust as the ‘British Motor Sports Training Trust’) on the 6[th] June 2022.  It was felt that the new working title better reflected the areas benefitting from the Trust’s grant aid provision, very much in line with the aims and objectives as set out in the Trust’s Deed, in not being limited solely to ‘Training’ related grants,  The actual use of the approved new working title is still pending formal launch, with other marketing and communication aspects needing to first be finalised, and further progress on this is anticipated during the first half of 2023.  It is hoped that these developments will include the creation of new fundraising opportunities to further extend the sustainability of the Trust for the future so that extension of the current grant aid programmes can be undertaken where and when considered appropriate by the Board of Trustees. 

This timetable also aligns with a planned review of the Trust’s Reserves Policy which was amended in January 2021 to allow a temporary breach for a specific period (up to a maximum of 3 years to the end of 2023) because of the special circumstances occasioned by the Covid-19 pandemic and its longer term effects, although other political and economic factors during 2022 described above have also been detrimental to our more recent investment returns. Along with the planned marketing and promotion initiatives being developed, this upcoming review of the Trust’s Reserves Policy will primarily focus on ensuring at all times that the Trust can continue its good work, whilst also ensuring that the resources of the Trust are not depleted to a point where the Trust’s future as a going concern could be prejudiced. 

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**BRITISH MOTOR SPORTS TRAINING TRUST TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2022 - CONTINUED** 

## **Objectives and activities for the public benefit** 

The objects of the Trust are to provide funds for education and training particularly of volunteer officials, and to provide other grants to further improve safety in the sport, including the best practice use of relevant equipment in order to prevent and reduce the incidence and gravity of accidents in motor sport generally. The Trustees confirm that they have referred to the Charity Commission’s guidance on public benefit at https://www.gov.uk/guidance/public-benefit-rules-for-charities when reviewing the Trust’s aims and objectives, in planning future activities, and in setting the grant making policy for the year. 

## **Grant making policy** 

The Trust makes grants to support training projects for volunteer officials, including marshals training days and Advanced Trauma Life Support and other medical training days for Doctors and Paramedics; the training of volunteer members of Rescue and Recovery Crews, and – through its Safety Development Fund - providing grant aid to support the purchase, refurbishing and replacement of Rescue and Recovery Units and their specified equipment to ensure the highest standards of safety are maintained in the sport. The Trust also provides grant aid to assist safety improvements at motor sport venues (which during 2022 included partnership funding towards the costs of 74 LED Safety Light Panels - which comply with the latest FIA (World Governing Body) standards - at a total of 8 race circuits across the UK). 

Applications to the Safety Development Fund for grant aid are submitted to the Trust Secretary, who checks the applications for validity and correctness, and they are then considered by an Awards Panel consisting of independent trustee Mr Nicky Moffitt, the Trust Secretary Mr Allan Dean-Lewis MBE, and three other independent members selected for their lifelong breadth of motor sport experience across all disciplines, these throughout 2022 being the Chairman of the Regional Committee, Phil Foster (who formally undertook this role from the 1[st] January 2022) ; previous Secretary of the former Motorsport Safety Fund Charity, Dominic Ostrowski ; and International Training Instructor and Senior Official, Mr Neil Fuller. 

Feedback is collated and any queries resolved, and after agreement of the level of support then a formal offer letter is sent by the Trust Secretary. All grants are typically paid at a range of percentages of the value of evidenced actual expenditure for the work or projects involved. 

Whilst all applications are judged on their individual merit measured against the objectives of the Trust, the Awards Panel use a standardised guideline document, reviewed annually, to ensure a consistency of award for a given type of application. Details on how to apply for grants, together with the relevant forms are available from the Trust Secretary and are also included on the Trust’s website at www.bmstt.org 

This provides guidance notes to assist understanding of the grant aid process and availability, and the provision of an on-line, as well as downloadable, application facility.  The website also provides a single point of contact for general information about the Trust, and includes unsolicited testimonials from a range of Clubs and organisations who have benefitted through grant aid from the Trust. 

Since its launch in November 2020, a ‘Donate’ button has been included on the Trust’s website and remained active throughout 2022.  This resulted in unsolicited gross donations being received totalling £3,473.67 during the year.  With the expected improved publicity and promotion as we advance into 2023, it is hoped that the potential for receipts from this fundraising tool for the Trust can be increased for the future.  It is also noted that some legacy bequests were received by the Trust during the year – totalling £20,000.00 – which identifies another potential future revenue stream for appropriate publicity. 

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**BRITISH MOTOR SPORTS TRAINING TRUST** 

**TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2022 - CONTINUED** 

## **Covid-19 disclosure** 

Following the unprecedented closure of the sport which took effect on the 17[th] March 2020 due to the Covid-19 outbreak, the progressive resumption of sporting activity during 2021 as Home Country and UK restrictions were eased continued into 2022, although there remained some visible residual effects on the Trust’s work and grant aid programmes. 

Where the remaining effects were most evident was probably with regard to applications to the Safety Development Fund for Rescue and safety related projects, where the lack of income over the previous 18 months minimised the financial ability of Clubs and Organisations to re-invest for the future.  Towards the end of 2022, there was some anecdotal evidence that this position will improve during 2023 as Rescue Units and Clubs build a fuller calendar of income generating events and are likely therefore to return to a position where planning for the future in terms of renewing safety equipment or investing in further safety improvements are concerned becomes more possible again. 

With regard to the grant-aided Training Days planned a noticeable degree of recovery was noticeable although a number of planned days were cancelled during the year due to venue availability and attendance issues, and towards the end of the year the increasing level of inflation had an impact on venue hire and other costs, although the overall figures remained manageable.  Some areas of the country (notably Scotland) continued to run interactive on-line training delivery as introduced during the pandemic, which providing both a sporting and well-being benefit in keeping members of the volunteer officials community linked and involved, as well as keeping them informed regarding training needs as the sport accelerated its activities.  Encouraging costeffective online training delivery where possible and appropriate remains a continuing action point for the Trust in the times ahead. 

Overall, the increased ability for clubs to deliver against their original Training Day grant programme expectations in practical terms resulted in a significantly increase of activity for this programme compared with the previous two years, although the total of claims received and processed by the Trust still remained considerably lower than the original estimated costs budgeted for, which was therefore much closer to the pattern which had been evident in earlier ‘pre-Covid’ years. 

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**BRITISH MOTOR SPORTS TRAINING TRUST** 

**TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2022 - CONTINUED** 

## **Achievements and Performance** 

The Trustees consider that the performance of the charity this year has been satisfactory. 

During 2022, the Charity considered 24 applications for grant aid under its Safety Development Fund programme which enabled key areas of the sport to progress with safety related projects, with the breakdown of grants benefitting the training and equipping of Medical/ Rescue Units and their volunteer crews (despite the absence of meaningful levels of available income for re-investment into new equipment) (22%) whilst improved activity levels and supply chains proportionately benefitted Venue Safety improvements (42%).  Other grants were made to benefit Rally and Closed Roads Safety (3%) and Recovery Unit equipment (33%).  Feedback from Clubs and organisations from across the UK and its islands in receipt of this grant aid has remained universally and overwhelmingly positive. Grant aid applications for the Safety Development Fund in 2022 were almost universally made via the on-line platform on the Trust’s website, which included supporting guidance notes and other general information. 

_Unsolicited comments from recipients received are shown on the ‘Testimonial’ page of the Trust website www.bmstt.org and reflect the real value of the Trust’s grants to the volunteer officials sector of the sport._ 

Training projects grant aided by the Trust provided support with the delivery of training to a range of volunteer officials across all the disciplines and activities within the sport, and across the whole spectrum of knowledge from newcomers to the sport (a target area to meet increased needs) to those experienced individuals where updating and refreshing their knowledge (according to identified training needs) is an essential part of keeping them up to date.  The importance of training especially in safety related areas and the management of incidents is very much recognised by the volunteers in the sport, and local, regional and national delivery using licensed Training Instructors is a key ingredient in being able to deliver those needs, and the Trust’s support is widely acknowledged.  It was pleasing to see a progressive resurgence in the ability to plan and deliver these Training projects during 2022, although the total grants provided still fell short of the originally budgeted amount based on applicants cost estimates. It was also apparent that training sessions planned later during 2022 were increasingly affected by inevitable inflationary cost increases, but this was well managed during the period, although the maximum impact of such increased costs would likely not be felt until 2023. 

During 2022 the Trust also continued providing grant aid support for the second year of an extensive training programme being delivered by the Learning and Development Department of the Governing Body, very much focussing on benefitting the safety training and associated aspects for the wide range of volunteer officials who make motorsport possible and which was agreed by the Trustees at its outset, and re-affirmed thereafter, to fully align with the Trust’s Aims and Objectives. 

Using its current 3-pillar approach, the Trust also embarked on a Special Project (on an equal partnership funding basis with Motorsport UK and Circuit Operators to support the purchase of a total of 74 LED safety light panels - which comply with the latest FIA (World Governing Body) standards - to be used across 8 race circuit venues in England and Scotland to supplement flag signals displayed at manned marshals posts, thus making a substantial improvement in visibility (especially in poor weather conditions) and hence safety. 

The above comments and feedback speak volumes for the difference which the Trust’s work continues to achieve and enable for its beneficiaries during another year, and the Trustees are justifiably proud of this positive reputation, especially given the challenges that have continued to arise from the post-pandemic effects and especially the political and economic pressures that erupted during this year. 

## **Risk management** 

The Trustees have a process to identify and manage the principal risk the Charity faces. The Treasurer reviews the operational risks and key controls faced by the Charity. The Charity’s main source of income is its investment income. The principal financial risk the Charity faces is not meeting its investment returns along with short term volatility in financial markets and hence having less flexibility to fund its activities. The Trust’s own Investment Advisory Committee meets its investment managers twice a year. The investment mandate allows flexibility around asset allocation, while remaining within the risk/return ratio set by the Trustees. The Trustees are satisfied that the risks to which the Charity is exposed are reviewed and that systems and procedures are in place to manage those risks. 

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**BRITISH MOTOR SPORTS TRAINING TRUST** 

## **TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2022 - CONTINUED** 

## **Investment policy and performance** 

The Trust’s investment strategy is a total return approach to the investments. We have two independent investment managers – Investec and Evelyn Partners (formerly Smith & Williamson). 

Both managers are instructed to invest to maximise the total return on investments under their control within the constraints of a medium to low risk investment portfolio with a bias towards income yielding stock. The objectives of the investment policy are to ensure the creation of sufficient income and capital growth to enable the Charity to carry out its purposes consistently year by year with due and proper consideration to the future needs and the maintenance of, and if possible, enhancement of the value of the invested funds while they are retained. Both capital and income may be used at any time for the furtherance of the Charity’s aims. The Trustees may draw upon capital or income without distinction. The assets of a charity must be invested in accordance with the Trustee Act 2000. The investment brief is broadly defined but the ethical criteria prohibit investment in companies which may bring motor sport into disrepute and no investment in unquoted companies. 

The above objectives are to be achieved by investing prudently in a broad range of fixed interest securities and equities, which are quoted on a Recognised Investment Exchange and unit trusts and OEICs (open ended investment company), which are authorised under the Financial Services and Markets Act 2000. 

With the political and economic challenges especially in 2022/Q4, coupled with the effects of the Russian invasion of Ukraine earlier in 2022, made for an especially  challenging time for the financial markets, and the Trust’s investment funds were far from immune from that effect.  By the end of the year some degree of market recovery was evident, and it was hoped that – after the downturn during the Covid pandemic and the rapid recovery thereafter – that there were no more unexpected challenges as we entered 2023.  On the positive side, increasing inflation would likely reflect in some recovery in the return on cash investments. 

## **Investment Advisory Committee (IAC)** 

In previous years the BMSTT has shared its Investment sub-committee with Motorsport UK, who have appointed Roger Wills as its Investment Committee Chairman. 

However at the Trustees Meeting in May 2022, it was unanimously agreed that an Investment Advisory Committee (IAC) of the British Motor Sports Training Trust be formally established, with the Trustees being collectively responsible for setting the mandate for the Investment Advisory Committee to manage, report and make recommendations back to the Board of Trustees. 

The Investment Advisory Committee is comprised of: The Trust Chairman (as an automatic appointment) ; Roger Wills (as an independent chair of the IAC) ; Jim Morris (as an additional current independent Trustee). Both the Trust Treasurer and Trust General Secretary would also be eligible to attend, 

but would have no voting rights.  It was also agreed that the Trust Chairman Rod Parkin, Roger Wills (IAC Chairman) and Jim Morris, plus the Trust Treasurer, would be the authorised contacts who could instruct on the fund, and that the administrative contacts who would receive investment reports and market updates would be the Trustees, the Trust Treasurer and the Trust General Secretary.  Periodic meetings between the IAC and fund managers were subsequently agreed to be arranged by Roger Wills, in liaison with the Trust Treasurer. 

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**BRITISH MOTOR SPORTS TRAINING TRUST** 

## **TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2022 - CONTINUED** 

## **Reserves policy** 

At 31[st] December 2022, unrestricted funds amounted to £3,117,669. 

It has been the recorded policy of the Charity (as fully described in the 2018 Trustees Annual Report) to maintain unrestricted funds at a level that generates enough investment income to cover the cost of grants made now and the foreseeable future on the assumption that no further funds are receivable from third parties. 

However, after previous discussion at the extra Trustees meeting subsequently held on the 16[th] January 2021, the following resolution was tabled and agreed unanimously for immediate adoption: 

_“That, for a specific period (up to a maximum of 3 years to the end of 2023, and always subject to subsequent review), the above policy could be temporarily breached because of the special circumstances occasioned by the Covid-19 pandemic and its longer term effects, whilst ensuring at all times that the resources of the Trust are not depleted to a point where the Trust’s future as a going concern could be prejudiced”_ 

It was recognised that the Covid-19 crisis had continued to have a residual effect on the Trust’s grant aid programmes during 2022, but it is noted that this agreed temporary breach of the previous reserves policy had still enabled the Trust to achieve its own objectives of improving safety and supporting the training programmes for volunteer officials where they aligned with the Trust’s aims and objectives, both for existing and additional grant aid opportunities. 

With the approach of the third year of the above amended Reserves Policy, the Trust is to review this amendment in a timely manner during 2023, whilst taking into account all the circumstances that may prevail at that time, always with the primary aim of maintaining the Trust’s resilience and sustainability for the future. 

## **Plans for the future** 

A review of the Trust’s Deed and of the structure and future strategy of the Trust commenced in late 2019 and resulted in a list of actions for consideration being agreed, recognising that the future financing of the Trust was (and remains) a key element to establish its long term sustainability, and that the marketing and promotion of the Trust’s work was also key to that progression. The tragic sudden death in April 2021 of the former Trust Chairman (Professor Richard Parry-Jones CBE) created an inevitable hiatus in progressing these issues, until the actioning of the ‘Way Forward’ planning became current again throughout 2022 following the appointment of Rod Parkin as Trust Chairman in November 2021. 

During 2022, an outline new marketing and communication strategy was developed as a precursor to seeking new fundraising opportunities for the Trust, and the benefit in kind provided by the Marketing and Communications team at Motorsport UK in this respect is gratefully acknowledged.  With the approval from the Charity Commission for the Trust to be able to adopt a new working title for the Trust (as the ‘British Motorsport Trust’) the process of bringing new Marketing and Communication approaches to a point of launch in tandem with the re-branding had not yet been finalised at the end of 2022, and it is hoped that this can be progressed to that point – with appropriate Trustee endorsement – during 2023, and form part of the Trust’s desire to seek new funding opportunities to support its work. It was felt that the new working title better reflected the areas benefitting from the Trust’s grant aid provision, very much in line with the aims and objectives as set out in the Trust’s Deed, in not being limited solely to ‘Training’ related grants, 

With no Trustee changes during the year, the percentage of independent Trustees remained at 75% at the end of 2022, thus maintaining for a second year the long-held aim to have a majority of independent Trustees, in line with Charity Commission guidelines. 

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**BRITISH MOTOR SPORTS TRAINING TRUST** 

**TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2022 – CONTINUED** 

## **Structure, governance and management** 

The Charitable Trust is constituted by a Trust Deed executed on the 19th May 1977. 

The day to day management of the Trust is undertaken on behalf of the Trustees by the General Secretary. 

The trustees who served throughout the year were as below: 

R K Parkin - Chairman N.E.H.Moffitt H.B. Chambers J Morris D Ostrowski P Foster K E Traxton Dr B J Shippey 

All Trustees give their time freely and no trustee remuneration was paid during the year _(2021 - £nil)._ Details of the trustees’ expenses and any related party transactions are disclosed in notes 9 and 10 to the accounts. Trustees are required to disclose all relevant interests and register them with the General Secretary, and in accordance with the Trustees policy withdraw from decisions where a conflict of interest may arise. The automatically eligible Trustees of the Charity during the year to 31[st] December 2022 are the following individuals, for the time being holding office as: 

Chief Executive of Motorsport UK _(Hugh B Chambers)_ Chairman of the Regional Committee of Motorsport UK _(Phil Foster )_ 

At the primary bi-annual trustees’ meetings (which were supplemented during 2022 by one extra virtual trustees meeting), the trustees agree the broad strategy and areas of activity for the Trust including grant making, investment, risk management policies, performance and reserves. The Trustees are assisted by a sub-committee on investments (the Investment Advisory Committee) and the Treasurer. The Trust Deed authorises the Trustees to make and hold investments using the general funds of the charity. 

The continuing Trustees, with the assistance of the General Secretary, recruit and appoint new Trustees.  The Trustees agree what skills, experience and knowledge are needed and write it down in the form of a short job description and ideal person specification.  The continuing trustees agree responsibilities and a process for recruitment but the whole trustee Board remains in full control of the decision making process. 

Page 10 of 22 



**BRITISH MOTOR SPORTS TRAINING TRUST** 

**TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2022 - CONTINUED** 

## **Trustees' responsibilities in the preparation of the financial statements** 

The charity trustees are responsible for preparing the Trustees’ annual report and the financial statements for each financial year in accordance with applicable law and UK Generally Accepted Accounting Practices. 

The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which gives a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. In preparing these financial statements, the trustees are required to:- 

a) select suitable accounting policies and apply them consistently; 

- b) observe the methods and principles in the Charities SORP; 

- c) make judgements and estimates that are reasonable and prudent; 

- d) state whether applicable accounting standards have been followed, subject to any material 

departures disclosed and explained in the financial statements; 

- e) prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities. 

The Trustees are responsible for the maintenance and integrity of the charity and financial information. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

Approved by the Trustees on 12 June 2023 and signed on their behalf by: 


## **Roderick K Parkin** 

Chairman of Trustees 

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**BRITISH MOTOR SPORTS TRAINING TRUST REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE BRITISH MOTOR SPORTS TRAINING TRUST** 

## **Opinion** 

We have audited the financial statements of British Motor Sports Training Trust for the year ended 31 December 2022 which comprise Statement of Financial Activities, Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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: 

- give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of the charity’s net movement in funds for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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. 

## **Responsibilities of trustees for the financial statements** 

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

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

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.  We have nothing to report in this regard. 

Page 12 of 22 



**BRITISH MOTOR SPORTS TRAINING TRUST REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE BRITISH MOTOR SPORTS TRAINING TRUST - CONTINUED** 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: 

- adequate accounting records have not been kept by the charity; or 

- sufficient and proper accounting records have not been kept; or 

- the charity financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees for the financial statements** 

As explained more fully in the trustees’ responsibilities statement set out on page 11, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

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

## **Auditor’s responsibilities for the audit of the financial statements** 

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

Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to taxation and charity law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and the Charities SORP. 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team included: 

- Inspecting minutes of Trustees’ meetings; 

- Inspecting correspondence with regulators and tax authorities; 

- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; 

- Evaluating management’s controls designed to prevent and detect irregularities; 

- Reviewing valuations of investments; and 

- Challenging assumptions and judgements made by management in their critical accounting estimates. There were no areas within the financial statements that required the Trustees to make significant judgements or estimates during the year. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or noncompliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 

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. 

Page 13 of 22 



**BRITISH MOTOR SPORTS TRAINING TRUST REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE BRITISH MOTOR SPORTS TRAINING TRUST - CONTINUED** 

## **Use of our report** 

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body for our audit work, for this report, or for the opinions we have formed. 

## Haysmacintyre LLP 

**Haysmacintyre LLP** Chartered Accountants Registered Auditors 10 Queen Street Place London EC4R 1AG 

Date:   18 July 2023 

Haysmacintyre LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006 

Page 14 of 22 



**BRITISH MOTOR SPORTS TRAINING TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2022** 

|**NOTES**<br>**Income from:**<br>Donations and legacies<br>2<br>Investment income<br>3<br>Total income<br>**Expenditure on:**<br>Direct charitable:-<br>Training Grants<br>4<br>Safety development grants<br>5<br>Other expenditure:-<br>Wages & salaries<br>10<br>Office Costs<br>10<br>Auditors' remuneration<br>Bank charges<br>Donations<br>Consultancy – fees & expenses<br>Insurance<br>Investment management fees<br>Taxation fees<br>Marketing<br>Trustee expenses<br>Rescue unit support<br>Total expenditure<br>Net expenditure<br>Investment gains / (losses)<br>6<br>Net movement on funds<br> <br>Total funds brought forward<br>Total funds carried forward|**Unrestricte**<br>**2022**<br>**£**<br>47,998<br>88,153<br>136,151<br>243,056<br>131,911<br>15,460<br>8,868<br>4,020<br>107<br>5,000<br>9,417<br>3,000<br>28,140<br>192<br>2,585<br>540<br>-<br>452,296<br>(316,145)<br>(441,535)<br>(757,680)<br> <br>3,875,349<br> <br>3,117,669<br>|**d Funds**<br>**2021**<br>**£**<br>28,511<br>101,150<br>129,661<br>140,545<br>48,766<br>13,993<br>8,348<br>4,560<br>92<br>-<br>9,056<br>3,000<br>30,583<br>-<br>-<br>-<br>60<br>259,003<br>(129,342)<br>300,868<br>171,526<br>3,703,823<br>3,875,349|
|---|---|---|



The notes on pages 17 to 22 form part of these financial statements. 

Page 15 of 22 



**BRITISH MOTOR SPORTS TRAINING TRUST BALANCE SHEET AS AT 31ST DECEMBER 2022** 

|**NOTES**<br>**Fixed Assets**<br>Investments<br>6<br>**Current Assets**<br>Debtors<br>7<br>Cash at bank<br>**Total assets**<br>**Less Current Liabilities**<br>Creditors<br>8<br> <br>**Total Assets less Current Liabilities**<br>**Funds**<br>Unrestricted funds|**2022**<br>**£**<br>3,449,954<br>4,807<br>13,472<br>3,468,233<br> (350,564)<br> <br> 3,117,669<br>3,117,669||**2021**<br>**£**<br>4,169,476<br>8,508<br>34,544<br>4,212,528<br>(337,179)<br>3,875,349<br> 3,875,349|
|---|---|---|---|
|||<br>||



The notes on pages 17 to 22 form part of these financial statements. 

Approved by the trustees on 12 June 2023 and signed on their behalf. 


...................................................... ...................................................... **R K Parkin N E H Moffitt Trustee Trustee** 

Page 16 of 22 



**BRITISH MOTOR SPORTS TRAINING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## **1. ACCOUNTING POLICIES** 

## **a) Basis of preparation of accounts** 

The financial statements have been prepared in accordance with the Charities (Accounts and Reports) Regulations, the Statement of Recommended Practice “Accounting and Reporting by Charities” (Charities SORP FRS102 Second Edition, effective 1 January 2019) and Financial Reporting Standards applicable in the UK and Republic of Ireland.  The particular accounting policies adopted are described below. They are prepared on the historical cost basis of accounting as modified to include the revaluation of investments which are carried at market value. Figures are presented in sterling and rounded to the nearest pound. 

British Motor Sports Training Trust meets the definition of a public benefit entity under FRS102. 

- **b) General information** 

   - The Charity is a charity registered in England and Wales (charity number: 273828). The Charity’s registered office address is 141 The Command Works, Southern Avenue, Bicester Heritage, Bicester, OX27 8FY. 

## **c) Preparation of the accounts on a going concern basis** 

- The Trustees consider that there are no material uncertainties which would cast doubt on the Charity’s ability to continue as a going concern having reviewed the financial performance to date during 2023 and the financial forecasts through to the end of 2024. 

## **d) Significant judgements** 

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Charity’s accounting policies. There are no significant areas where management have applied key judgements. 

- **e) Income** 

Legacies and donations are recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount receivable can be measured reliably. 

## **f) Expenditure** 

Expenditure is recognised as soon as the related liability is incurred and has been classified under headings that aggregate all costs relating to that category. Liabilities are recognised as soon as there is a legal or constructive obligation committing the Charity to the expenditure. 

Expenditure on charitable activities comprises of grants payable. Grants awarded are included in the statement of financial activities when approved by the trustees and agreed with the recipient. The value of grants unpaid at the year-end is accrued. 

Support costs represent indirect costs relating to raising funds and the Charity’s charitable activities. 

Governance costs comprise the costs of running the charity, including auditors’ remuneration, certain legal costs and all costs of complying with constitutional and statutory requirements, such as costs of Board meetings and of preparing the statutory accounts. 

## **g) Taxation** 

The charity is exempt from tax on its charitable activities. 

## **h) Fixed asset investments** 

Fixed asset investments are stated at market value. Gains and losses on disposal and revaluation of fixed asset investments are taken to the statement of financial activities. 

## **i) Debtors** 

   - Short term debtors are measured at transaction price, less any impairment. Prepayments are measured at the amount prepaid net of trade discount due. 

- **j) Cash and cash equivalents** Cash and cash equivalents includes cash in hand, deposits held at banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within current liabilities. 

Page 17 of 22 



**BRITISH MOTOR SPORTS TRAINING TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## **k) Creditors** 

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

## **l) Funds** 

General funds comprise the accumulated surplus or deficit from the Statement of Financial Activities which is not restricted nor designated funds. They are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.  The charity does not currently hold any restricted or designated funds. 

## **m) Cash flow statement** 

The charity qualifies as a small charity under the Charities SORP (FRS102). A cash flow statement is therefore not required. 

|**2. DONATIONS**<br>Motorsport UK Association - running costs<br>Sundry donations<br>**3. INVESTMENT INCOME**<br>Income from listed investments<br>Interest receivable on cash deposits|**2022**<br>24,328<br>23,670<br> <br>£47,998<br>88,130<br>23<br>£88,153|**2021**<br>22,341<br> 6,170|
|---|---|---|
|||<br>£6,170|
|||<br>101,150<br> -<br>£101,150|



## **4. GRANTS TOWARDS TRAINING PROJECTS AND EQUIPMENT** 

The grants paid towards training projects and equipment during 2022 amounted to £254,531 paid to 39 organisations ( _2021 - £140,545 paid to 18 organisations_ ). 

The grant applications considered during the year from clubs and allied organisations throughout the UK and its islands resulted in grant aid being awarded to cover safety training in each of the below disciplines, specifically matched to the different needs of new, intermediate and experienced volunteer officials: 

Race, Rally, Speed Kart, Rescue, Extrication, Recovery, Cross Country, Autotest, First Aid, First Response, Fire Training, Radio and Medical. 

Page 18 of 22 



**BRITISH MOTOR SPORTS TRAINING TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## **4. GRANTS TOWARDS TRAINING PROJECTS AND EQUIPMENT – CONTINUED** 

The grants for training and equipment awarded during the year were as below. 

|**Grants Approved in 2022**<br>500 Motor Racing Club<br>ACSMC<br>AEMC<br>AMRO<br>ANCC<br>ANECC<br>ANWCC<br>ASWMC<br>Ballynahinch & District MC<br>BARC<br>BARC Yorkshire Centre<br>BMMC Midlands<br>BMMC NE<br>BMMC NW<br>BMMC South Midlands<br>BMMC SW<br>BRMC<br>BRSCC East Anglian<br>CAM Rescue<br>Carmarthen Motor Club<br>Castle Combe Racing Club<br>Darlington & District MC<br>EMMU Rescue<br>Goodwood Marshals Club<br>Hagley & District Motor Club<br>Lister Hospital<br>Longton & District MC<br>Manx Motor Racing Club<br>Midland Automobile Club<br>Midland Hillclimb<br>MMP/ANICC<br>MMP/UAC<br>MSV<br>Northern Ireland Motor Club<br>Rotating Ferrets MC<br>SAMSC<br>Silverstone Marshals Team<br>SMRC<br>Southern Rescue Group<br>Trent Valley Kart Club<br>U17MC for ANWCC<br>Vintage Sports Car Club<br>Institutions receiving less than £1,000<br>Motorsport UK<br>**Total**<br>**Grand Total**|**Grants Approved in 2021 not claimed**<br>1,838<br>ACSMC<br>1,463<br>AMRO<br>2,925<br>ANCC<br>12,863<br>ANEMMC<br>4,757<br>BARC<br>2,736<br>BARC Medical<br>3,307<br>BMMC Midlands<br>6,398<br>BMMC NI Rescue<br>2,839<br>BMMC NW<br>30,689<br>BMMC South Midlands<br>1,003<br>BRMC<br>7,560<br>BRSCC East Anglian<br>6,773<br>Corsair Rescue<br>7,844<br>Darlington & District MC<br>11,329<br>EMAMC<br>1,956<br>Goodwood Marshals Club<br>13,298<br>MSV<br>4,018<br>Rotating Ferrets MC<br>6,413<br>SAMSC<br>1,125<br>Silverstone Marshals Team<br>3,225<br>Southern Rescue Group<br>4,100<br>Vintage Sports Car Club<br>1,725<br>Warrington & District MC<br>6,000<br>Institutions awarded less than £1,000<br>4,216<br>7,705<br>1,215<br>1,706<br>2,640<br>4,734<br>1,043<br>1,016<br>12,790<br>11,310<br>1,875<br>18,557<br>2,130<br>1,360<br>8,344<br>1,315<br>3,938<br>2,408<br>7,671<br>104,519<br>**346,670**|3,606<br>-<br>9,610<br>-<br>2,802<br>-<br>2,775<br>-<br>1,936<br>-<br>5,863<br>-<br>3,200<br>-<br>1,673<br>-<br>1,030<br>-<br>5,299<br>-<br>13,254<br>-<br>2,153<br>-<br>10,200<br>-<br>1,826<br>-<br>3,395<br>-<br>4,912<br>-<br>1,512<br>-<br>3,480<br>-<br>6,271<br>-<br>1,059<br>-<br>2,516<br>-<br>1,865<br>-<br>7,753<br>-<br>5,623<br>-|
|---|---|---|
|||**103,613**<br>**-**|
||||
|||**243,056**|



Page 19 of 22 



**BRITISH MOTOR SPORTS TRAINING TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## **5. SAFETY DEVELOPMENT GRANTS** 

The grants payable towards safety development projects and equipment during 2022 amounted to £131,911 paid to 26 organisations. ( _2021 - £48,766 paid to 22 organisations)._ 

In 2022, safety development grants contain £63,301 paid to 4 organisations in respect of funding for light panels at FIA Grade 3 and above circuits in the UK. 

The grant applications considered during the year reflected the below spread of grant awards paid during the year, both by type of award and by geographical distribution: 

## **Type of award of above grants:** 

|**2022**||
|---|---|
|Rally & Closed Roads Safety|3%|
|Venue Safety and Sustainability|42%|
|Rescue Units and Equipment|22%|
|Recovery Units and Equipment|33%|



## **2021** 

Rally & Closed Roads Safety               12% Venue Safety and Sustainability           19% Rescue Units and Equipment 56% Recovery Units and Equipment 13% 

## **Geographical distribution of above grants:** 

## **2022** 

## **2021** 

England 43% Wales 13% Scotland 19% Northern Ireland 11% British Isle – Isle of Man, Jersey 14% 

|England|63%|
|---|---|
|Wales|0%|
|Scotland|32%|
|Northern Ireland|2%|
|British Isle – Isle of Man, Jersey|3%|



Page 20 of 22 



**BRITISH MOTOR SPORTS TRAINING TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## **5. SAFETY DEVELOPMENT GRANTS – CONTINUED** 

The grants for safety development paid during the year were as below: 

|Motorsport Vision<br>Association of Motorsport Recovery<br>British Automobile Racing Club<br>Dragon Kart Club<br>Knockhill Racing Circuit<br>Lothian Car Club<br>Mid Cheshire Motor Racing Club<br>Midland Automobile Club<br>Sarnia Rescue<br>Seven Fifty Motor Club<br>Westcountry Rescue<br>Grants under £1,000<br>**6. INVESTMENTS**<br>Opening Balance at 1 January 2022<br>Additions<br>Disposals<br>Movement in Market Value<br>  <br>Closing Balance at 31 December 2022<br>**Investment Gains**<br>Movement in Market Value<br>Profit/Loss on Sale<br>**Analysis of investments held:**<br>Cash<br>Listed investments<br>Market value at 31 December 2022<br>**7. DEBTORS**<br>Other debtors<br>Income tax deducted<br>Accrued investment income||<br>|37,504<br>22,800<br>21,572<br>7,200<br>4,225<br>6,800<br>7,500<br>7,200<br>5,750<br>7,000<br>1,200<br>3,160<br>£131,911<br>**2022**<br>4,001,490<br>647,648<br>(812,444)<br>(542,375)<br>3,294,320<br>(542,375)<br>100,840<br>(£441,535)<br>155,634<br>3,294,320<br>3,449,954<br>**2022**<br>-<br>-<br>4,807<br>£4,807|**2021**<br>3,863,179<br>1,229,352<br>(1,115,584)<br>24,544<br> £4,001,490<br>24,544<br>276,324<br>£300,868<br>167,986<br>4,001,490<br>£4,169,476<br>**2021**<br>3,960<br>149<br>4,399<br>£8,508|
|---|---|---|---|---|
||<br> <br>|<br> £|||
|||<br>|||
|||<br> £|||
|||<br>||<br>|



Other debtors includes £nil ( _2021: £3,960_ ) owed by Motorsport UK Association Limited, overpayment of creditor balance. 

Page 21 of 22 



**BRITISH MOTOR SPORTS TRAINING TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022** 

|**8. CREDITORS**<br>Grant Commitments<br>Other creditors<br>Accruals|**2022**<br>299,742<br>5,806<br>45,016<br>£350,564||**2021**<br>309,873<br>-<br>14,622|
|---|---|---|---|
||||<br>£324,495|



Other creditors includes £5,000 ( _2021: £nil_ ) owed to Motorsport UK Association Limited relating to short term cash funding provided from Motorsport UK Association Limited to British Motor Sports Training Trust in 2022. 

## **9. TRANSACTIONS WITH TRUSTEES** 

No remuneration was paid to the Trustees. No expenses were reimbursed to any Trustee during the current year or the prior year. 

The Trustees give freely their time and expertise without any form of remuneration, but expenses amounting to £540 _(2021 - £Nil)_ were covered on behalf of four Trustees in the year. These expenses covered accommodation costs to attend Trustee meetings. There were no other related party transactions during the year. 

## **10. RELATED PARTY TRANSACTIONS** 

Messrs Chambers and Moffitt, are directors of  Motorsport UK Association Ltd trading as Motorsport UK, a company limited by guarantee. As disclosed in Note 4, Motorsport UK completed a number of training projects totalling £104,519 during the year (2021: £116,994) which were eligible for grant funding. 

Motorsport UK made no gift aid contribution during the year to 31 December 2022 ( _2021 - £Nil_ ) but did provide accommodation, secretarial and accounting support required for day to day operations free of charge. The value of these services totalled £24,328 ( _2021: £22,341_ ). 

Page 22 of 22