**REGISTERED COMPANY NUMBER: 02069723 (England and Wales) REGISTERED CHARITY NUMBER: 295573** **Report of the Trustees and** **Financial Statements for the Year Ended 31 December 2020** ## **for** ## **ROAD SAFETY FOUNDATION** Haines Watts Chartered Accountants and Statutory Auditor 178 Buckingham Avenue Slough Berkshire SL1 4RD **ROAD SAFETY FOUNDATION** **Contents of the Financial Statements for the year ended 31 December 2020** ||**Page**| |---|---| |**Reference and Administrative Details**|1| |**Report of the Trustees**|2 to 9| |**Report of the Independent Auditors**|10 to 12| |**Statement of Financial Activities**|13| |**Balance Sheet**|14| |**Notes to the Financial Statements**|15 to 20| |**Detailed Statement of Financial Activities**|21| ## **ROAD SAFETY FOUNDATION** ## **Reference and Administrative Details** **for the year ended 31 December 2020** |**Trustees**|Lord J L Whitty Chairman| |---|---| ||Mr R K Turner| ||Miss A J Overton-Wood| ||Mr A S H Silverman| ||Dr S M Sharland| |**Company secretary**|Ms B A King| |**Registered office**|60 Trafalgar Square| ||London| ||WC2N 5DS| |**Registered company number**|02069723 (England and Wales)| |**Registered charity number**|295573| |**Auditors**|Haines Watts| ||Chartered Accountants and Statutory Auditor| ||178 Buckingham Avenue| ||Slough| ||Berkshire| ||SL1 4RD| |**Bankers**|Barclays Bank Plc| ||8 Market Place| ||Basingstoke| ||RG21 7QA| Page 1 ## **ROAD SAFETY FOUNDATION** ## **Report of the Trustees** **for the year ended 31 December 2020** The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the financial statements of Road Safety Foundation (the company) for the ended 31 December 2020. The Trustees confirm that the Annual report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard 102. Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required. ## **Objectives and activities** ## **Charitable objectives** The Road Safety Foundation was established to promote road safety for the benefit of the public and in particular by: 1. the carrying out or procuring (whether by way of financial assistance or otherwise) the research into all factors affecting the safe use by all members of the community of public roads and the publication of the useful results of such research; 2. the promotion of the circulation throughout the community of advice, information and knowledge regarding the safe use of the public roads by all classes of users thereof; 3. to conceive, develop and implement whether alone or jointly with third parties ideas, programmes and course of action whether of an educational or other nature designed to or having as their objective the improvement of any aspect of road safety including (but not by way of limitation of the foregoing) the carrying out of any projects or programmes intended to educate young children or others in the safe use of the public roads. In setting objectives and planning our activities, the trustees have considered the Charity Commission's guidance on public benefit including the guidance on public benefit and fee charging. In seeking grants and other voluntary income to support our ongoing work the trustees consider the accessibility of its work to those organisations that seek to further the public benefit in relation to road safety. ## **The Charity's Goals for the Second United Nations Decade of Action for Road Safety 2020-2030** The Foundation's mission is to help make road travel as safe as rail and air on Britain's roads and beyond. The United Nations has declared 2020-2030 the second Decade of Action for Road Safety, in support of the Sustainable Development Goal to halve road deaths by 2030 from a 2020 baseline. The World Health Organisation has set formal global road safety performance targets, the ones relating to road infrastructure embrace the iRAP Star Rating of new and existing roads which forms a large part of the charity's work. The charity's work is in support of the Decade of Action and Sustainable Development Goal and focuses on Safe System interventions and research. Shared responsibility and strong collaboration are critical to effective road trauma reduction, and partnerships with corporates, other charities and NGOs, and national and local governments are essential to making the Foundation's work count in saving lives. International collaboration is central to securing, maintaining and applying world class technologies - and transferring knowledge to low and middle-income countries with acute road casualty problems. As new technologies and approaches are adopted, training to enable their effective deployment becomes important. With central and local government and others adopting many of the charity's important policy strands, the balance of the work of the charity is changing to be more focused on implementation and capacity building. However, advocacy remains an important component of the charity's work to ensure proactive risk reduction and road safety investment become ubiquitous. The charity aims to help reduce road trauma through the adoption of Safe Systems by: 1. Identifying investment packages likely to give high returns and analysing the safety performance of roads over time. 2. Providing the approach, tools and training necessary to support road authorities in taking a proactive approach to road risk reduction. 3. Undertaking research to progress knowledge and policy. Page 2 ## **ROAD SAFETY FOUNDATION** ## **Report of the Trustees** **for the year ended 31 December 2020** ## **2020 Programme** In 2020, the Foundation completed a thriving portfolio of projects and workstreams including the completion of our annual Crash Risk Mapping work tracking progress on motorways and A roads in Great Britain, supporting national and local road authorities in applying the iRAP approach, completing research and innovation projects and building capacity of professionals to deliver to the Safe System. ## **British EuroRAP Results 2020** The on-line launch of the British EuroRAP results took place on the 17th September 2020. The event was a huge success with pre-recorded addresses from the Secretary of State for Transport - Rt Hon Grant Shapps MP, the chair of the Transport Select Committee - Huw Merriman MP, and a unique interview with Eddie Izzard. Warm endorsement of RSF's work was received from both Secretary of State and Huw Merriman. Ant Middle, CEO of Ageas Insurance, gave a well-received address indicative of our mature collaboration. The report, "Looking Back, Moving Forward", can be viewed here: https://roadsafetyfoundation.org/project/looking-back-moving-forward/. The report reviewed performance across the EuroRAP network over the last 20 years and tracked performance of the United Kingdom compared with other European countries. The report also describes the safety performance of each tier of road network in each of the countries of Great Britain and highlights the investment opportunity to address the 10% of each network with the best potential investment returns. An interactive data portal can be accessed here: http://rsfmaps.agilysis.co.uk/ The event, attended by over 200 people, can be viewed on the RSF YouTube channel: https://www.youtube.com/channel/UCkxoDsnxiHaWPPpepGbR_BQ?view_as=subscriber. The launch of the results was followed by an interactive webinar with presentations from key RSF partners including Kent County Council on their Major Road Network project, The Floow on using their telematics data to inform road assessments, Arup on star rating for designs, and finally Transport for Greater Manchester about their walking and cycling programme. ## **Strategic Roads** ## Highways England The charity's work with Highways England continued to progress well during 2020. Highways England's aim is to reduce the number of those killed or seriously injured when travelling on the SRN to zero by 2040. In the Road Investment Strategy 2 (RIS 2): 2020-2025 the company outlines a £27.4bn investment to make sure the road network is safe, reliable and efficient for everyone. Highways England is looking at developing a future iRAP-based Performance Indicator. Highways England also has the desire to embed the use of the iRAP data and modelling approach in practice throughout the organisation. ## Office of Rail and Road (ORR) RSF undertook a review for ORR of how Highways England prioritises its road safety investment and this was published in July 2020. The work considered how Highways England prioritises investments to improve safety outcomes on the strategic road network (SRN) to ensure that it delivers the maximum benefit for road users. Work was carried out over three months and involved a broad scan of policies and processes aided by contributions from interviews with a range of individuals and organisations. Formal interviews of around 35 Highways England personnel, partners and stakeholders were undertaken and scores of documents were reviewed. A number of findings and recommendations were provided to ORR including the need to prioritise funding along the SRN to focus on areas with high trauma costs; urgent work should begin now in generating the third Roads Investment Strategy portfolio with a high return safety investment and that a 'Safer Roads Task Force' should be set up. Page 3 **ROAD SAFETY FOUNDATION** ## **Report of the Trustees** **for the year ended 31 December 2020** ## Welsh Government RSF worked with the Welsh Government to undertake an iRAP Star Rating on the A40 from Abergavenny to St Clears. The project included a training element involving 21 people. ## **Local Roads** Following on from RSF's support of DfT's Safer Roads Fund in 2017 and 2018, RSF has continued to advocate for greater investment on high-risk local authority roads. The Safer Roads Fund report published by RSF indicated that the £100 million should prevent 1,450 fatal and serious injuries over the next 20 years and had an overall Benefit Cost Ratio of 4.4. This work demonstrated that safety remedial schemes are at least as competitive in economic terms as other major transport investment (for example bypasses or rail projects). Following on from this work RSF has undertaken dozens of projects for local authorities. In 2020 the Foundation supported Solihull Metropolitan Borough Council, Staffordshire County Council, Warwickshire County Council, Birmingham City Council and Norfolk County Council in applying the iRAP approach. We continue to scope out investment packages for the Major Roads Network (MRN). The MRN is a network of roads managed by local authorities which complements Highway's England's network and importantly it will also be part funded in future from ringfenced Vehicle Excise Duty. The current challenge is that safety has not been given priority in plans for the MRN, with the focus being on economic development via major projects. RSF has been helping Kent County Council to scope the potential investment in safety remedial measures on their MRN. In October 2020, RSF commenced a project for DfT to undertake a review of roads around 10 RAF bases in England with US Visiting Forces. ## **Research and Other Themes** ## - Road Safety Trust Urban Road Safety This three-year project started in February 2020 and is funded by the Road Safety Trust under a grant "Enhancing iRAP Investment Plans for Vulnerable Road Users". The project aims to enhance iRAP investment plans for vulnerable road users (pedestrians and cyclists primarily). ## Younger Drivers A piece of work funded by the AA looking into younger drivers on rural roads was commissioned and concluded in September 2020. This project provided a dashboard created by Agilysis and a report written by RSF. ## Older Drivers The Foundation continues to run the Older Drivers Task Force. With support from DfT, the RSF will be reviewing the Older Drivers Task Force publication 'Supporting Safe Driving into Old Age. The new report is expected to be released later in 2021. ## TfWM The RSF chairs the Transport for West Midlands Strategic Road Safety Group, giving us an extremely beneficial opportunity to work with a wide variety of road safety stakeholders in tackling road trauma in this region. ## **Capacity Building** Capacity building and training is an important component of all RSF projects where the iRAP methodology is applied and dozens of practitioners have been trained over the course of the year. Increasingly there is an appetite for capacity building in Star Rating for Designs, an approach that allows the application of the iRAP methodology to design stage schemes. ## **Supporting Knowledge Transfer Overseas** The Foundation has played an important role in supporting the EuroRAP project SLAIN in 2020, with an important piece of analysis looking at the safety performance of roads across the Trans European Road Network Page 4 ## **ROAD SAFETY FOUNDATION** ## **Report of the Trustees** **for the year ended 31 December 2020** An MoU between the European Investment Bank and, collectively, RSF/EuroRAP/iRAP was signed at the Ministerial meeting in Stockholm in February 2020. This collective agreement enables: Support for applications in Europe (EuroRAP's main field of activity), Analysis and strategy (RSF's key strength) and R&D and applications outside Europe (iRAP). In 2020 RSF supported an iRAP project in Romania. ## **Future plans** The Foundation plays a role valued by international partners. In turn, this role is also important for the charity's global know-how in UK applications. Work in partnership with other high performing countries and to support countries with high rates of death and serious injury will continue. Specifically, the Foundation plans to seek to: - Continue to advocate for greater investment in road safety engineering similar to the Safer Roads Fund through the annual risk mapping and performance tracking research programme. - Continue to provide input into the iRAP tools and specifically to create a 'route review tool' that will benefit those aiming to refine and test different investment scenarios. - Support Highways England in communicating the results of the 2020 survey, setting a new iRAP performance indicator, and embedding the use of the iRAP data and approach in practice. - Undertake MRN surveys and advocate for some of the proposed investment on the MRN to be allocated to safety remedial schemes and for the same level of commitment to be made to safety performance management as has been evident for the Strategic Road Network. - Continue to highlight the challenges of local authorities with their diminishing capacity and budget for road safety improvements, and advocate for different approaches to governance, strategy and execution. - Continue to support local authorities in undertaking iRAP surveys and developing highly effective road safety remedial countermeasure programmes. - Continue to develop relationships with consultant engineers to embed the Star Rating for Designs methodology. - - Build capacity amongst road authority personnel and their supply chain through training in Safe Systems and the iRAP approach. - Continue to track and review progress with implementing recommendations of the Older Drivers Task Force and publishing a revised report. - Support initiatives at European and global level where the charity's special skills can contribute effectively to developing policies to support large scale saving of road trauma. - Develop the Safe Systems approach by encouraging early adoption of proven advanced vehicle safety systems, particularly autonomous emergency systems, and systems reliant on consistent and high-quality road marking and signing. - Pilot the Star Rating for Schools approach for the first time in UK. Page 5 ## **ROAD SAFETY FOUNDATION** ## **Report of the Trustees** **for the year ended 31 December 2020** ## **Structure, governance and management** a. Constitution The company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 31 October 1986. The company is constituted under a Memorandum of Association dated 31 October 1986 and is a registered charity number 295573. ## b. Method of appointment or election of Trustees The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. The minimum number of trustees shall be three save for circumstances where a charity (as defined by s1 of the Charities Act 2011) is appointed as a trustee, in which case it may serve as a sole trustee of the Foundation. There shall be no maximum number (unless otherwise determined by Ordinary Resolution). ## c. Policies adopted for the induction and training of Trustees Most trustees are already familiar with the practical work of the charity and familiar with the work of charities in general. New trustees are given briefings to provide personally tailored orientation to brief them as appropriate on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performances of the charity. The opportunity of the new trustee is generally taken to provide Council as a whole with presentations of overall progress with the charity's work. If needed, trustees would be encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. ## d. Organisational structure and decision making The charity is governed by the Board of Trustees. The Board agrees and monitors the Forward Plan and approves all the charity's policies. The day to day running of the charity is delegated to the Executive overseen by a Management Committee. Board meetings are held at least three times a year primarily to review financial reports, discuss issues of strategic direction, and programme priorities. Trustees are sought for the Board specifically to add value to the charity. This is both in terms of creating a Board that is representative of the community that the charity serves and one that has all the skills and experience required to properly carry out the work of the charity. When a potential trustee is identified, they are usually invited to attend a Board meeting in the capacity of observer. Once they and the Board of Trustees have gained a greater understanding of each other they are nominated for election to the position of trustee and elected by unanimous decision. The charity is fortunate that it is able to attract committed individuals with great relevant experience in the field and in public life. ## e. Related party relationships Details of related party transactions are set out in note 11 of the notes to the financial statements. ## f. Risk management The key risks which RSF has identified and the steps being taken to minimise these risks are listed below: - Volatility in funding and other financial risks. This risk is being managed through seeking diverse sources of income and not being reliant on one single source of funding. - Poor project delivery. This risk is being managed by having strong project controls and a quality assurance process in place. - Insufficient staff to undertake project delivery. This risk is being managed by having a pool of competent subcontractors and casual workers. We also benefit through a joint employment arrangement with iRAP. Page 6 ## **ROAD SAFETY FOUNDATION** ## **Report of the Trustees** **for the year ended 31 December 2020** - Retention of key executive staff. This risk is being managed by having staff performance reviews and succession plans in place. - IT security. This is being managed by having data backup and security procedures in place plus we undertake regular penetration testing. To ensure that risks are identified, and appropriate control measures are put in place, the Board of Trustees has recently reviewed the major risks to which the Foundation is exposed and their potential impact. Actions have been taken or identified to mitigate them, and they will continue to be reviewed periodically. The Trustees are responsible for the charity's systems of internal control and effectiveness. No system of internal control can provide absolute assurance against material misstatement or loss. However, the Charity's system is designed to provide the Board of Trustees with reasonable assurance that there are proper procedures in place, and that they are operating effectively. The key elements of the internal control system are: - Delegation: There is a clear organisational structure with a documented Delegation of Authority (DoA) in place - - which is reviewed and approved by the Board. - Reporting: The Board of Trustees approves and reviews annual budgets and monitors actuals and forecast - - expenditure on a regular basis. - Risk Management: The potential risks arising from the Charity's activities have been documented in a - comprehensive risk register. This is reviewed and updated regularly and reviewed by Trustees at least once a - - year. The risk management process follows three main requirements or sources of guidance: The Charity Governance Code, the Charity Commission's "Charity and Risk Management" (CC26) and the statement of Recommended practice "Accounting and Reporting by Charities." The Charity has in place an anti-corruption and bribery policy which states that it is our policy to conduct all our activities in an open and honest manner. We take a zero-tolerance approach to bribery and corruption and are committed to acting professionally, fairly and with integrity in all our activities We always aim to follow best practice and the provisions of the UK Bribery Act 2010 with all new staff undertaking training on this as part of their induction process. We also ensure that our subcontractors are aware of the provisions and agree to them as part of our standard contractual process. Refresher training is also provided to staff. Another law which is significant to the Charity is the General Data Protection Regulation (GDPR). We keep an up-to-date list of processing activities and where appropriate will conduct a data processing impact assessment on new activities. We also provide regular staff refresher training on the GDPR. To protect the Charity from fraud, we have several key controls in place which are: - Segregation of duties for financial processes. This means ensuring that no one person is in control of all aspects - - of a charity's finances or a transaction. - Records of all income and expenditure are kept, as well as receipts, invoices, or any supporting documents such - - as contracts or agreements. - No special privileges for a member of staff or Trustee. Financial controls must not be overridden, by-passed, or - ignored, whether by Trustees, staff or volunteers. - Bank statements and other accounts are regularly reconciled by a person, with spot checks carried out on books - - and records. - No cash transactions. We do not hold petty cash and all transactions are performed through secure electronic - - banking with reputable banks. - There is a whistleblowing policy in place whereby staff can raise any concerns in a confidential and safe manner. - - ## **Financial and Resourcing Position** ## **Funding** The charity's long-term independence has been built on raising diverse funding and by ensuring its programme and fixed costs do not exceed its committed income or reserves. Page 7 ## **ROAD SAFETY FOUNDATION** ## **Report of the Trustees** **for the year ended 31 December 2020** The long-term support of Ageas UK has been central to the development and growth of the Foundation in recent years. This will come to an end after the 2021 EuroRAP Crash Risk Mapping project completes. While seeking to continue to work in close partnership with central and local government, Trustees continue to seek private sector funding to maintain diverse income. ## **Resourcing** The voluntary unpaid work of experienced Trustees and Council members is central to guiding and contributing to the programme. Its Trustee base continues to evolve to ensure skills in business management, fundraising, research and training. Given the significant profile that the Foundation now has, the charity is exploring the appetite for a broader base of committed support to underpin its work. The joint employment agreement which the charity enjoys with iRAP and EuroRAP, together with the charity's network of self-employed professionals, allows the programme to expand and contract efficiently in response to demands. ## **Going Concern** During 2020, as a result of the COVID 19 pandemic, some of the planned projects for the year suffered delays largely due to the travel restrictions. However, the pandemic encouraged us to find innovative ways to deliver projects remotely which has resulted in savings in travel costs. In addition, many of the events that the Foundation hosts or participates in were affected either with cancellations or with events taking place via online platforms. The Foundation's staff continued to work from home during respective national lockdowns. The financial statements have been prepared on a going concern basis. The trustees have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the trustees have tested their cash flow analysis to consider the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the trustees have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. ## **Financial review** ## a. Reserves Policy The Charity reviews the level of reserves each year. Reserves are held for three main reasons. - To protect the continuity of the charity's work in the event of a shortfall in income. - To provide the capital needed to finance the ongoing development and work of the charity. - To provide funds to replace assets. The Trustees have established that the general level of reserves that the Charity needs should be sufficient to cover at least twelve months of its forecasted "core" cost base at a value of £240,000. ## b. Material Investments Policy Under the memorandum and articles of association, the charity has the power to invest in any way the trustees wish. The Foundation has adopted a low-risk approach to investing surplus cash by placing cash on deposit accounts at the bank. ## c. Future Factors that may Affect Financial Performance The Foundation's long-term partnership and support from Ageas Insurance has enabled the continuing annual publication of the EuroRAP Risk Mapping and Performance Tracking results, however this agreement will come to an end in 2021. However, we currently looking to work with other partners who will be prepared to support this important piece of work in the future. ## **Statement of trustees' responsibilities** The trustees (who are also the directors of Road Safety Foundation for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Page 8 ROAD SAFEfY FOUNDATION Report oflhe Trustees forth• >•ar ended 31 Decemb•r 2020 Statemert of bwtees. responsibilities . conlinuod Ccmnpany law requires the trl￿lees to prepa￿ financaal stalemttrts for each financial year which give a true and fair of the slate of affairs of the charita￿e o)mpany and of the inc￿ling resources and ap￿IcatIon of resources. induding the inccrfne and w￿ditL￿a, OF the tharitatle mnpany for wic¥J. In pwriThJ thLW financial statamenls. tho trustees are r&]uired lo Se1￿ suitable accounb"ThJ pJtia8s and then apF4y ￿nSist￿. observe the methc*Js and prinaF4es in the Charity SORP, Makejudg￿enIS and esb"mates that are reasonatle and WL*Jwrt; preparg the finanaal statements on the g￿ng confxn basis unjess it is iroppiopriate to kyesume that the c*arit*Jle ccfflpany ￿11 c(￿hnUe in business. The trustees are respOn￿￿e for keeping prokw accwnting r￿rdS V*hith disdose with reasonaNe a¢XU￿ at any time the finanaal posilion of the charitaL4È ¢xxnpary and lo enab￿ thwn to ensu￿ that the finanaal staianenls com with the Companies Ad 20C6. They we also respOr￿ltIe ffx safeguarding Ihe assets of the charitable company arid hence for takn.ng reasonat4e steps ￿the wewtion d*tion ofhud and ts iwregulariti8s. In so f¥r as the trustees are aware". there is no rdevant audii information of wfmth the tharrtabte ￿parrfs aL¥Jil￿5 are Ltnaware", the trustees have tak￿ *1 steps that they owjht lo have taken to make th￿SelVeS aware of ary rdevant audf( information and to estaNish that authtwts are ofthat Info￿a￿)n. Approv&J by Ord￿ ofthe bo¥d oftrustees on.....%. l.fy.L/Xoz.i........... a￿1 s09n￿ on its t*half ty: LwdJL ruste8 Page 9 **Report of the Independent Auditors to the Members of Road Safety Foundation** ## **Opinion** We have audited the financial statements of Road Safety Foundation (the 'charitable company') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the 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 (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure, 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 Companies Act 2006. ## **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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company'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. However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the charitable compay's trade, customers, suppliers and wider economy. The Trustees' view on the impact of COVID-19 is disclosed in the notes to the financial statements. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors 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. 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 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 the audit: - the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Report of the Trustees has been prepared in accordance with applicable legal requirements. Page 10 ## **Report of the Independent Auditors to the Members of** **Road Safety Foundation** ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. ## **Responsibilities of trustees** As explained more fully in the Statement of Trustees' Responsibilities, 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. Page 11 Reportolthe Independent Authtors to the Members of Road Safety Foundalion Our responsibllltles forthe audit of the financlal statwents Our i)bjectives are lo obtan reasonat4e assuran￿ aw whether the fina￿31 stat￿ents as a whde are free from material misstat￿ent, whether due to fraud and to issu¢ a Rewt of the Inde￿d￿l Audit¢Ys that indudes our opinion. Reasonable assurance is a ￿gh levd of assEuanc8. but is not a guarantee that an a￿lIt ￿ndUcted In a￿rdance wth ISAS IUKI ￿11 always a material misstatemart when rt e￿$ts. MIsstat￿entS can arise fr(Kn fraud or error and are considered mater1￿ rf, indwidually or in the aggregate, they ￿Uld reasonatAy be eXp￿t&￿ to influen(* the economic deasions of Us￿$ takw on Ihe basL8 of thase fina￿￿ *at￿n￿ls. Irregularities, it)cluding fraL*J. are instances of nO￿l)m￿418￿￿ with laws an¢J rwulations. W8 design proc&Jures in line th our responsitilities, outlined above. to det￿ M￿er1￿ misslatwnents in raspect ol iffgJularilieg, induding fraud. The tr¥tent lo whKti our woc&Jures are capable of d*ting irwulaiities. induding fraud is detsiled below.. We gained an undwstanding of the legal and r&3ulatory frarnework apF4icable to tharitablè wnpany and tho widustry in vthich it operates. and co￿ld￿ed the risk of a(as by the tharIta￿e cxThpany that were ojntrary lo ap￿ICable law5 and regulations. including fraud. We disoJ&8ed wth the TrL￿ee$ the rxAi(ye5 and procalure5 in pla(* regarding compliance th laws and iegulations. We dis￿SSe￿I •nongst the authl team the id&)lIfi￿l laws and ￿U￿tionS. and rwnained lo any indicatiOll5 d non-(zrfnplianLX. During the audit we f(¥￿s￿l on laws and regulations reasonaLly bp 8¥￿ed to grve rise lo a material misstatement in the finanaal Sts1￿nents. induding. but not limii&l to, Ihe C￿npanieS Acl and UK lax legilalion. Our tests IndUd￿ agr*ng the finanoaj sta￿ent disdoTdJres to undfylying supwbng dL¥xunentslion and enquiires with managernent. Our proceAts￿ in rdalton to fraud itYJwJgJ bLrt wwe not lirnil￿ lo: inquim d managemwtt wh&h6r IW have any knowl&lge of any aciu81, suspectal or aOeg&J fraud. and disc1￿mmS amongst the audit team regarding risk of fr8u¢J such as opp)rturnties for fraUd￿ent manipthation of finanaa Stat￿n￿ts. We ¢Jetenn1n￿1 that the prinapal risks related lo posbw man￿1 joumal entries lo maniwlaie fitla)Lyal pthmiarK% and man&jem￿t bias thro(￿h judgements in accounting estimates. We also addre55eJJ the risk of override of intemal contrds, induding t&sting loum￿S and evalu8fjng V&fiethw Ih8re was evidm of L¥a8 by the Twstees that repreS￿￿j a risk of rnatwal misstatwnent due lo fraud. Because of the Inher&tt Irmrtations of an audft, Ihwe is a risk that we will n(rt det￿# all irregularities. induding those leading lo a material misstaignert in the financial statanents or nOn-cCfflrJHn￿ vKth regulatu)n. This risk int￿#e$ the more that com1￿lance wth a or regulation is removed from the events and transadions reffiected in thè ffinancial sLitemènts, as we will be less likdy to b￿x￿￿e avme of Instan￿ of non-compliance. The risk is a150 greater regarding irwularities occurring dug to fraud ￿th￿ than ￿ror, as fraud invrAve5 Int￿tion￿ cl)ncealM￿ fcigery, collusion. omission or misrepreser)tation. A further descrfption of wr reSpon￿￿1￿e5 the authl of financ4d stateM￿ts is localwj on the Finanoal Reporttng Council's website at ￿1.frC.Qr9.ukJaudrtQrSreSFX)n￿tHIrtie5. This de5UtKkn"on fomis part of our Report of the Independent Auditors. Use of our rèport This report is made sdely to the chaiitat4e oJmp8nYs M￿bers, a5 a body, in *cordanL* Chapter 3 of Part 16 of the &ynpanies Act 20(b. Our audit work has undertaken so that we might state lo the tharitable company's M￿berS those matters we are required to state to them in an audf(ors' report and for no other purposè. To the fknrflesl extent pemiitteil by law, we do [￿t a(w)t ￿ assume responsiL¥"lty to anyonè other than the charitable company and the charitable companls rn￿be[s as a bc¥Jy, auditw(¥K f￿1h15 reFrf cf tr the orxnions we have fomied. Jane ills (s￿1￿ Staiutory Auditor) for and on behaW of Haines Watts Charterèd Accountants and stalut￿yAu{fjlor 778 Bud(ingham Avenue Slough Berkshire SLI 4RD Page 12 ## **ROAD SAFETY FOUNDATION** ## **Statement of Financial Activities** **for the year ended 31 December 2020** |**Unrestricted**
**Restricted**
**fund**
**fund**
**Notes**
**£**
**£**
**Income and endowments from**
**Charitable activities**
2
Charitable activities
337,499
21,779
**Expenditure on**
**Charitable activities**
3
Charitable activities
225,160
20,921
Other
91,878
-
**Total**
317,038
20,921
**NET INCOME**
20,461
858
**Reconciliation of funds**
**Total funds brought forward**
171,988
-
**Total funds carried forward**
192,449
858|**2020**
**Total**
**funds**
**£**
359,278
246,081
91,878
337,959
21,319
171,988
193,307|**2019**
**Total**
**funds**
**£**
316,121
311,187
-
311,187
4,934
167,054
171,988| |---|---|---| The notes form part of these financial statements Page 13 ROAD SAFETY FOUNDATION B*lan¢e Sheat 31 D¢¢embBr 2020 2020 Total funds 2019 Totsl funds Unr•strieted R•slJict•d fund fund Flxed assets Tangible as$4s 623 1,583 Current assets Debtors Cash at bank 128.312 181. 858 129.170 181,9r 43,340 157.798 310.218 858 311.076 201,138 Crpditors Amounts f￿11r￿j ￿1h1n one y￿r (118,392} (118.3921 130.7331 Not current as•ets 191.826 858 192.684 170.405 Total as•ets Igss ¢urr•nt Ilatslitigs 192.449 193.307 171,988 NET ASSETS 192.449 858 193,307 171,988 Funds Unr8Stric*&J funds Reslficled funds 10 192,449 171,988 Totsl funds 193.307 171,988 These finaThial stat￿nentS have be￿ prepaW in xcwdan¢e with the [￿o¥1$10n5 apF4￿atye lo tharitaNe oJmpa￿8ts subjeca to the small (￿paThe8 r83im& naat statanents were apwov8J by lh& Board of Tnxtees and a￿OrIS￿l for issije on .. and w￿¢ &gr￿d on ts behatt ty. L￿d J L WFwty. Trus The ￿ fomi part ofthese statements Page 14 ## **ROAD SAFETY FOUNDATION** ## **Notes to the Financial Statements** **for the year ended 31 December 2020** ## **1. Accounting policies** ## **Basis of preparing the financial statements** The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. ## **Company status** The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company. ## **Going concern** The financial statements have been prepared on a going concern basis. The Trustees have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Trustees have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they have taken to mitigate the impact. Based on these assessments, given the measures that have been undertaken to mitigate the current adverse conditions, and the current resources available, the Trustees have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts ## **Key sources of estimation uncertainty and judgements** Preparation of the financial statements requires management to make significant judgements and estimates in determining the carrying amounts of certain assets and liabilities. Management makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. The management's estimates and assumptions are based on historical experience and expectation of future events and are reviewed periodically. This disclosure excludes uncertainty over future events and judgement in respect of measuring financial instruments. There is estimation uncertainty in calculating depreciation, as monthly calculations are based on the estimated useful life of assets. Whilst every attempt is made to ensure that the depreciation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets. There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month and whilst every attempt is made to ensure that the bad debt provision is as accurate as possible, there remains a risk that the provisions will not match the level of debts which ultimately prove to be collectable. ## **Income** All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Project income is recognised on the stage of completion of the project, which is calculated based on the estimated margin at completion of the project. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. ## **Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Page 15 **ROAD SAFETY FOUNDATION** ## **Notes to the Financial Statements - continued** **for the year ended 31 December 2020** ## **1. Accounting policies - continued** ## **Expenditure** Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. ## **Tangible fixed assets** Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Computer equipment - 33% on cost ## **Taxation** The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. ## **Fund accounting** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees in furtherance of the general objectives of the company and which have not been designated for other purposes. ## **Foreign currencies** Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate. ## **Pension costs and other post-retirement benefits** The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. ## **Financial instruments** Financial assets and financial liabilities are recognised in the balance sheet when the charitable company becomes a party to the contractual provisions of the instrument. Trade and other debtors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the charitable company will not be able to collect all amounts due. Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank which are an integral part of the charitable company's cash management. Financial liabilities and equity instruments issued by the charitable company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the charitable company after deducting all of its liabilities. Equity instruments issued by the charitable company are recorded at the proceeds received, net of direct issue costs. Page 16 ## **ROAD SAFETY FOUNDATION** ## **Notes to the Financial Statements - continued** **for the year ended 31 December 2020** |**2.**
**Income from charitable activities**
**2020**
**Activity**
**£**
Research projects
Charitable activities
331,723
Grants
Charitable activities
27,555
359,278
Grants received, included in the above, are as follows:
**2020**
**£**
Road Safety Trust
5,840
EIB Road Safety Partnership
8,851
DFT Review of ODTF Report
12,864
27,555
**3.**
**Charitable activities costs**
Charitable activities
**4.**
**Net income/(expenditure)**
Net income/(expenditure) is stated after charging/(crediting):
**2020**
**£**
Auditors' remuneration
4,220
Depreciation - owned assets
960
Net (gains) / losses on foreign exchange
363
**5.**
**Trustees' remuneration and benefits**
**Trustees' expenses**
During the year, trustees' were reimbursed £nil (2019: £132) for their travel expenses
**6.**
**Staff costs**|**2019**
**£**
316,121
-|**2019**
**£**
316,121
-|**2019**
**£**
316,121
-| |---|---|---|---| ||316,121||| ||**2019**
**£**
-
-
-
-
**Direct**
**Costs**
**£**
246,081
**2019**
**£**
2,648
878
237|**2019**
**£**
-
-
-|| |||-|| ||||| ||||| The average monthly number of employees during the year was as follows: |Trustees
Employees
No employees received emoluments in excess of £60,000.|**2020**
5
3
8|**2019**
5
3
8| |---|---|---| Page 17 ## **ROAD SAFETY FOUNDATION** ## **Notes to the Financial Statements - continued** **for the year ended 31 December 2020** ## **7. Tangible fixed assets** |**Cost**
At 1 January 2020 and 31 December 2020
**Depreciation**
At 1 January 2020
Charge for year
At 31 December 2020
**Net book value**
At 31 December 2020
At 31 December 2019
**Debtors: amounts falling due within one year**
Trade debtors
Other debtors
VAT
Prepayments and accrued income
**Creditors: amounts falling due within one year**
Trade creditors
Social security and other taxes
VAT
Other creditors
Accruals and deferred income
**Movement in funds**
**Unrestricted funds**
General fund
**Restricted funds**
Restricted Fund
**TOTAL FUNDS**|**Computer**
**equipment**
**£**
2,880
1,297
960
2,257
623
1,583
**2020**
**2019**
**£**
**£**
18,370
5,895
7,907
-
-
1,117
102,893
36,328
129,170
43,340
**2020**
**2019**
**£**
**£**
-
8,937
886
2,096
2,295
-
25,172
8,883
90,039
10,817
118,392
30,733
**Net**
**movement**
**At**
**At 1/1/20**
**in funds**
**31/12/20**
**£**
**£**
**£**
171,988
20,461
192,449
-
858
858
171,988
21,319
193,307| |---|---| ## **8. Debtors: amounts falling due within one year** ## **9. Creditors: amounts falling due within one year** ## **10. Movement in funds** Page 18 ## **ROAD SAFETY FOUNDATION** ## **Notes to the Financial Statements - continued** **for the year ended 31 December 2020** ## **10. Movement in funds - continued** Net movement in funds, included in the above are as follows: ||**Incoming**|**Resources**|**Movement**| |---|---|---|---| ||**resources**|**expended**|**in funds**| ||**£**|**£**|**£**| |**Unrestricted funds**|||| |General fund|337,499|(317,038)|20,461| |**Restricted funds**|||| |Restricted Fund|21,779|(20,921)|858| |**TOTAL FUNDS**|359,278|(337,959)|21,319| ## **Comparatives for movement in funds** |**Unrestricted funds**
General fund
**TOTAL FUNDS**|**Net**
**movement**
**At 1/1/19**
**in funds**
**£**
**£**
167,054
4,934
167,054
4,934|**At**
**31/12/19**
**£**
171,988
171,988| |---|---|---| Comparative net movement in funds, included in the above are as follows: ||**Incoming**|**Resources**|**Movement**| |---|---|---|---| ||**resources**|**expended**|**in funds**| ||**£**|**£**|**£**| |**Unrestricted funds**|||| |General fund|316,121|(311,187)|4,934| |**TOTAL FUNDS**|316,121|(311,187)|4,934| The restricted fund relates to Road Safety Trust. ## **11. Related party disclosures** The Foundation is related to the International Road Assessment Programme ( iRAP), Road assessment Services Limited (RASL) and EuroRAP AISBL (EuroRAP) through common key management and has a joint employment agreement in place with these organisations. During the year, the Foundation shared staffing costs of £117,452 (2019: £56,867) and made other payments of £6,091 (2019: £13,836) with iRAP. It also made payments of £11,449 to EuroRAP (2019: £15,901) and payments to Road Assessment Services of £362 (2019:£6,691). The Foundation received payments from EuroRAP of £1,800 (2019: £2,208). At 31 December 2020, included in the other creditors is £nil due to EuroRAP (2019: £1,191). Also included in other creditors is £24,346 due to iRAP (2019: £7,391) and £826 due to RASL (2019: £301).Included within other debtors is £7907 due from EuroRAP (2019:£nil). Page 19 ## **ROAD SAFETY FOUNDATION** ## **Notes to the Financial Statements - continued** **for the year ended 31 December 2020** ## **11. Related party disclosures - continued** Dr Susan Sharland is a trustee of both the Foundation and the International Road Assessment Programme (iRAP). She is also a director of Road Assessment Services Limited. ## **12. Ultimate controlling party** The company is under the control of the Trustees. Page 20 ## **ROAD SAFETY FOUNDATION** ## **Detailed Statement of Financial Activities** **for the year ended 31 December 2020** |**Income and endowments**
**Charitable activities**
Research projects
Grants
**Total incoming resources**
**Expenditure**
**Charitable activities**
Research projects
**Support costs**
**Management**
Wages
Pensions
Membership fees
Insurance
Exchange differences
Bank charges
PR consultancy
Printing
Computer costs
Communications
Subscriptions
Legal and professional costs
Office costs
Fundraising
Computer equipment
**Governance costs**
Auditors' remuneration
Total resources expended
**Net income**|**2020**
**£**
331,723
27,555
359,278
359,278
246,081
67,738
6,812
5,304
1,081
363
344
-
56
582
240
522
351
3,305
-
960
87,658
4,220
337,959
21,319|**2019**
**£**
316,121
-
316,121
316,121
157,289
111,884
11,573
5,173
1,919
237
274
7,533
169
140
1,050
500
426
8,244
1,250
878
151,250
2,648
311,187
4,934| |---|---|---| This page does not form part of the statutory financial statements Page 21