CE sixth form colleg
Annual Report
and Accounts
2023124
Motability
Foundation
Making alljourneys accessible
## **Our vision**
**We are building a future where all disabled people have the transport options to make the journeys they choose**
## Annual Report and Accounts 2023/24
## **THE MOTABILITY FOUNDATION**
|**THE MOTABILITY FOUNDATION**||
|---|---|
|Introduction|05|
|The Five Strategic Pillars|06|
|Chair’s Statement|08|
|Chief Executive Offcers’ Statements|10|
|**PERFORMANCE AND PLANS**||
|**Strategic Pillars:**||
|•Motability Scheme|14|
|•Grant-Making|20|
|•Build Awareness and Engagement|32|
|•Innovation|38|
|•Disability Charity|44|
|– Environment|47|
|– Control and Assurance|51|
|**FINANCIAL REVIEW AND RESULTS,**||
|**AND GOVERNORS’ REPORT**|57|
|**AUDITOR’S REPORT**||
|Independent Auditor’s Report to the||
|Governors (Trustees) of Motability|78|
|**FINANCIAL STATEMENTS**||
|Consolidated Statement of Financial Activities|84|
|Statement of Financial Activities (Charity Only)|85|
|Balance Sheet (Group and Charity)|86|
|Consolidated Cash Flow Statement|87|
|Notes to the Financial Statements|88|
|Patrons, Governors, Members and Key Executive Employees 134||
www.motabilityfoundation.org.uk **03**
Annual Report and Accounts 2023/24
## **Introduction**
There are 16 million (m) disabled people in the UK, making up more than one fifth of the population. However, disabled people often struggle to make journeys due to a lack of access to transport and accessible transport options. At the Motability Foundation we fund, support, research and innovate so that all disabled people can make the journeys they choose.
The Motability Foundation provides meanstested grants to help people access the Scheme or use their vehicle more easily. We award grants to other organisations that provide different types of transport or carry out research into how to make transport accessible. We also carry out our own research and innovation to make transport more accessible, both now and in the future.
## **What We Do**
The Motability Scheme is used by more than 760,000 customers and is the main way we provide access to transport for disabled people. The Scheme offers an affordable way for disabled people to lease a new vehicle, Wheelchair Accessible Vehicle (WAV) or powered wheelchair. Anyone who receives qualifying higher rate mobility allowances from the Government can join the Scheme. It is delivered by a separate company, Motability Operations. The delivery is overseen by us, the Motability Foundation, to ensure that it is the best it can be for disabled people.
## **How We Are Funded**
Every year, Motability Operations aim to make a modest return on their asset base so they can borrow money, buy vehicles and make sure they remain affordable for Scheme customers. They do not pay dividends to shareholders. Any surplus income is used to improve and grow the Scheme and secure its long-term future, or it is donated to the Motability Foundation. Donations aren’t guaranteed. In 2019, we set up the Motability Endowment Trust (MET), which invests our funds to make our grant giving, research and innovation more sustainable in the long term.
**We fund, support, research and innovate so that all disabled people can make the journeys they choose**
www.motabilityfoundation.org.uk **05**
Annual Report and Accounts 2023/24
## The Five Strategic Pillars
## **Our Founding Principles**
Our founding principles underpin our Strategic Pillars. They are to provide:
- Solutions that meet the needs of our beneficiaries
- The highest standard of service
- The best possible value for money
- Financial sustainability for the long term
**The charitable object of the Motability Foundation is to facilitate the relief and assistance of disabled people in connection with the provision of personal, and other, transportation**
## **Motability Scheme**
Ensure the success of the Motability Scheme in meeting the transportation needs of disabled people
## **Our goals**
- [Ensure good value for ] money and high levels of customer service are delivered across the UK
- [ Ensure that the Scheme ] is financially and environmentally sustainable and efficient
- [Ensure our oversight ] of the Scheme is effective and transparent
## **Grant-Making**
Use charitable funds effectively to address the transportation needs of beneficiaries
## **Our goals**
- [ Ensure our grant programmes ] deliver maximum impact for beneficiaries and valuefor-money solutions
- [Improve the ways in which ] our beneficiaries access our assistance and high levels of service
- [Use our expertise in ] disability, transportation and grant-making to assist more beneficiaries
- [Continue to develop ] evidence-informed grant programmes to meet the current and future transportation needs of our disabled beneficiaries
**06** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
**Build Awareness and Engagement**
Build awareness of, and trust in, the work of the Motability Foundation, listen to the views of disabled people, their organisations and other key stakeholders, and take account of them when we make important decisions
## **Our goals**
- [Improve awareness and ] understanding of our charitable work, including oversight of the Motability Scheme
- [Actively listen to, and learn ] from, others who can inform and educate us, especially those with lived experience
- [Involve the right stakeholders ] in our decision making, and share information about the decisions we make and our reasons for making them
## **Innovation**
Constantly look for and develop new ways to meet the evolving transportation needs of disabled people
## **Our goals**
- [Amplify the voices of ] disabled people when important transport policy and design decisions are made, including along the journey to zero-emission transportation and future technology
- [Explore opportunities to ] improve the provision of community and door-to-door transport for disabled people
- [Improve our understanding ] of the mobility needs of disabled people, especially those who receive mobility allowances beyond vehicle leases, and seek out new opportunities to meet these needs
## **Disability Charity**
Provide the highest level of service to meet the transportation needs of disabled people, underpinned by a strong infrastructure and an empathetic, evidenceled culture
## **Our goals**
- [Ensure we have a strong and ] sustainable infrastructure including the continuing development of our people, skills, systems and ways of working to enable our goals to be achieved
- [Continue to champion our ] values and behaviours that place our beneficiaries at the centre of all we do – ensuring that we keep striving to fulfil our vision and meet beneficiary needs in the most relevant and productive way
www.motabilityfoundation.org.uk **07**
Annual Report and Accounts 2023/24
## Chair’s Statement
**Charles Manby MBE Chair of the Motability Foundation**
As I look back on the last financial year, I am hugely impressed by what the Motability Foundation and Motability Operations have delivered to help disabled people make the journeys they choose. Our grant-giving to other organisations has expanded disabled people’s transport options in communities right across the UK. This ranges from community transport to active travel to travel confidence training for people using public transport. We estimate that these grants will support more than 221,000 disabled people to travel (see p25). The Motability Scheme remains our main
initiative, with more than 760,000 customers now leasing a Scheme vehicle. More than 15,000 customers received a grant in 2023/24 (see p21), supporting them to access the Scheme and fund the vehicle they need. We have a responsibility to make sure we use our resources to achieve the biggest impact; these numbers, combined with our impact evaluations (see p28), show we are making a real difference.
The Motability Scheme is run by Motability Operations, with our oversight. Previously high re-sale values and robust financial strategies mean that Motability Operations are able to navigate increasing uncertainty in the market. During the past couple of years they have been supporting affordability, particularly as the industry transitions to Electric Vehicles (EVs), and directly supporting customers with New Vehicle Payments (see p17). However, the cost of motoring is rising for everyone, with significant increases in new vehicle prices, insurance and vehicle repair, alongside large interest rate rises. The Scheme is experiencing these challenges too. Careful cost management will continue to ensure the financial stability of the Scheme and ensure that it maintains its cost competitive position and remains excellent value for money.
As I look forward, the outlook presents undoubted challenges. The transition to EVs presents a seismic shift for Motability Operations, for the automotive industry and for drivers. Motability Operations have the headroom in their reserves to manage the
**08** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
transition to EVs currently, but there are many uncertainties. Pricing is not the only factor; advancing vehicle technology and legacy generations, charging infrastructure, potential user behaviours and repair supply chains are others, to name a few.
As well as supporting affordability for customers, in 2023/24 Motability Operations donated £250 million to the Motability Foundation. The uncertainties mentioned and the need to fund the growth of the Scheme mean that the likelihood of further donations in the medium term is reduced. In the meantime, this donation will help us to fund our grantgiving to Scheme customers, and to extend our six impact grant programmes to other organisations to March 2028, giving even more disabled people access to transport. Meanwhile, the Motability Endowment Trust (see p66) performed well. While the returns are not enough to support our grant-giving at current levels in the medium term, they provide a level of assurance alongside the donation.
In 2023/24, we began to review our five-year strategy. Consulting disabled people, disabled people’s organisations (DPOs) and stakeholders has been crucial to ensure that everything we do supports disabled people’s transport options, now and in the future.
I wish to thank the Board, the management team and all employees at the Motability Foundation for the commitment and empathy they display in all that they do, always having
beneficiaries at the heart of it all. I would like to thank Motability Operations, their Chair Rt Hon Sir Stephen O’Brien KBE and his Board for the donation, noting that future donations are not guaranteed, and for all their good governance. Also, Motability Operations CEO Andrew Miller and his team and staff who show such commitment for our work; the results are impressive.
Finally, I would like to extend my particular thanks and appreciation to Barry Le Grys; in his nearly five years as CEO his rigour, care, and interpersonal skills have examined and improved every aspect of the Motability Foundation and the important critical but constructive relationship with Motability Operations.
As we say goodbye to Barry Le Grys, we welcome Nigel Fletcher as CEO who joined in March 2024. Nigel has lived experience of disability and was appointed after a rigorous, competitive recruitment process. The Board is confident that his experience of commercial and not-for-profit organisations and his approach to people will enable the Motability Foundation to prosper and meet both the challenges and opportunities ahead.
**Charles Manby MBE Chair**
www.motabilityfoundation.org.uk **09**
Annual Report and Accounts 2023/24
## Chief Executive Officers’ Statements
**Barry Le Grys MBE Chief Executive Officer** Until March 2024
The past five years have seen the Motability Foundation grow quickly and expand the ways we support
disabled people to make journeys beyond the Motability Scheme.
We have funded groundbreaking innovations, such as the National Centre for Accessible Transport (ncat). We have refreshed our brand and changed our operating name to show our wider range of audiences what we can offer. We have invested in our people, processes and knowledge building. Now, we have reached a place of stability and can use our capabilities to maximise our impact in the years ahead.
Our work and consultation with disabled people has been fundamental to these changes. ncat launched in February 2023 (see p41). Half of the ncat Board have a lived experience of disability. Its consultation panel, the Community of Accessible Transport, had 1,000 members in March 2024, including individuals and transport and disability sector representatives, who contribute their expertise and experiences. Seven projects were approved by the ncat Board in 2023/24 and are in development.
Our Innovation Team worked to the priorities we refreshed in 2022/23, gathering evidence from disabled people and sector stakeholders to guide the direction of our future programmes. The transition to EVs is an ongoing priority
with a particular focus on the accessibility of EV charge points. We gave our endorsement, after a diligent application process, to assessment schemes run by AccessAble and BSI Assurance UK which will check that public EV charge points are accessible to disabled people (see p42).
Our knowledge-building included investing in our research and evaluation so we can continue to understand our impact. A good example is evaluating our Driving Lessons Grant Programme for Motability Scheme customers (see p28). The programme generated at least £8.10 return in benefits for every £1 spent, while 71 per cent of grant beneficiaries indicated a life-changing or significant improvement in their ability to access people and places. Findings such as these are influencing our decisions on funding grant-making.
Our people are vital to our achievements. We have continued to focus on, and invest in, equality, staff development and wellbeing. The dedication of our Human Resources Team, and their vision for the organisation, enabled us to achieve the highly coveted Investors in People Platinum standard.
2023/24 was my final year at the Motability Foundation after nearly five years as CEO. I am very pleased that Nigel Fletcher is now leading the executive at Harlow with a fresh outlook. Personally, it has been a huge privilege to be part of such a dedicated team and receive encouragement from the grant recipients who lie at the heart of what we do.
**Barry Le Grys MBE Chief Executive Officer**
**10** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## **Nigel Fletcher Chief Executive Officer** From March 2024
I am delighted to have joined the Motability Foundation because it represents a cause close to my own
heart. I have a disability which restricts my ability to travel, so I am familiar with trying to do something or get somewhere when your disability prevents you from having freedom of mobility.
I am also proud to be leading the organisation at such an important juncture in its history. At the time of writing, we are honoured to have confirmed His Majesty King Charles III as our Chief Patron, taking up the dedicated patronage of Her late Majesty The Queen. His support will help us to raise awareness of our work and bring us closer to a society which provides disabled people with the transport options they need.
While we can expect our rate of growth to stabilise, we will continue to raise our level of ambition so that we can make the most of the opportunities for research and innovation in the transport sector.
We will work with third parties and other charities and organisations to ensure existing
transport is made more accessible, and that accessibility is a key part of the design and delivery of future transport modes and technologies. We will also continue to work closely with Motability Operations on innovation related to the Scheme. We believe the evolving transport landscape, whilst challenging, will also present new opportunities for closing the transport accessibility gap.
The timing of my arrival also coincides with the end of a strategy planning cycle and therefore a comprehensive consultation and review of our strategy. The Governors will approve a new strategy at the end of 2024/25 (see p52-53). I will lead the Executive in the formation, implementation and monitoring of all the supporting plans. The team at Harlow are tremendously keen, as always, to forge ahead and are genuinely excited by the prospects.
I would like to thank everybody who has contributed to getting me up to full speed for their patience and advice. It is very clear we are all bound together and inspired by a strong sense of purpose, living our values to help us achieve our vision: building a future where all disabled people have the transport options to make the journeys they choose.
**Nigel Fletcher Chief Executive Officer**
www.motabilityfoundation.org.uk **11**
Annual Report and Accounts 2023/24
**Our year in numbers 2023/24**
**15,142 grants** provided to **Motability Scheme customers worth £72.6m**
**Three Transport Design Scholarships** awarded totalling **£381,017**
**Direct Mail to 697,917** people receiving higher rate DLA or PIP
**43 grants** to organisations **supporting 221,000 people**
**£50m** allocated for **grants to charities and organisations** over three years
**Six user research grants** given totalling **£1.4m**
STRATEGIC PILLAR
Motability
Scheme
Il//
## **STRATEGIC PILLAR**
## **Motability Scheme**
The Motability Scheme is the main way we assist disabled people to travel. We oversee how it is delivered by Motability Operations, and we work closely with them to ensure that it offers the best choice, value for money and customer service. We:
- [ Analyse customer research to identify how ] well the Scheme is meeting their needs
- [ Constantly monitor Scheme policy and ] significant issues that could impact Scheme performance
- [ Review how well the Scheme is performing ] against contractual Key Performance Indicators (KPIs)
- [ Discuss current activity and future plans]
- [ Attend Motability Operations governance ] committees
## **Motability Scheme Performance Customer Growth**
The Scheme grew rapidly in 2023/24, and at the end of March 2024 it had more than 760,000 customers. There are several reasons for the increase, including the improvement in vehicle availability and pricing, while the options for running a car outside the Scheme have also become more expensive.
## **Aims for 2023/24**
Ensure the Scheme continues to **1** operate to its current high standard, offering value for money and excellent customer service. **ACHIEVED**
Seek to maintain price stability as far **2** as possible against a background of restricted vehicle availability. In particular, monitor the affordability support to ensure that it is effective and efficient. **ACHIEVED**
Complete work to renew the **3** Scheme Agreement with Motability Operations, including a new performance framework and updated Key Performance Indicators (KPIs), with a continuing focus on securing the best outcomes for disabled people. **ONGOING**
Together with Motability Operations, **4** ensure that the fleet transitions towards EVs at broadly the same rate as the retail market, while ensuring that customers’ specific needs are addressed. **ACHIEVED**
## **Vehicle Availability and Affordability**
The supply of vehicles improved significantly following several years of limited supply. This led to more choice and lower prices. Lead times for vehicle delivery also reduced.
The supply of EVs in particular improved. There
www.motabil www.motab lityfoundation.org.uk **i** tyfoundation.org.uk **XX15**
## **The Motability Scheme offers**
- A worry-free lease for a new vehicle, scooter or powered wheelchair
- Insurance, tyres, servicing and breakdown cover included
- WAVs
- Adaptations to vehicles so disabled people can drive or travel as a passenger more easily
for such an event. Although the market has stabilised in 2024, the outlook for future values has declined. This is an additional challenge for Motability Operations in setting lease prices.
is now a wide customer choice for all vehicle categories without a price premium over petrol and diesel alternatives. The effective range of EVs also improved, with many having a range of 250 miles or more.
## **Customer Satisfaction**
## **Value For Money**
The Motability Scheme continued to offer customers excellent value for money. Independent analysis found that Scheme vehicle leases represented a saving of 45 per cent on similar deals from other major leasing companies. This saving has remained relatively stable over recent years.
Overall, customer satisfaction with the Motability Scheme remained high and stable at 9.6 out of 10. Motability Operations continued to invest in their customer support teams and other initiatives so that customers could get the best possible experience. They also introduced options for digital interaction to improve access.
## **Major Risks**
## **Used Vehicles**
Motability Operations generates income from selling used vehicles. Constrained new vehicle supply in 2021 meant that used vehicle values rose by approximately 30 per cent and remained high during 2022 and for most of 2023. The anticipated market correction arrived in the last quarter of 2023, within the expected range
Operational and financial risks arising within the Scheme are addressed by the Motability Operations Audit Committee, which is chaired by an independent Non-Executive Director.
The Motability Foundation’s Treasurer and CEO attend the Audit Committee meetings to stay informed of any emerging risks that may impact the Motability Scheme.
**16** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## **Motability Scheme Policy**
## **Vehicle Availability and Affordability**
In 2022, Motability Operations introduced a New Vehicle Payment to help with the increased cost of vehicles. The £750 payment is made at the start of each new lease and is available for one lease renewal cycle. For the vast majority of customers, the eligibility for a New Vehicle Payment will stop at the end of 2024.
During the year, improved vehicle supply resulted in improved vehicle pricing. It also led to faster fulfilment of existing orders which, combined with record new customer applications, led to higher-than-expected Scheme growth.
Across industry, significant above-inflation cost increases in areas such as insurance premiums and maintenance continued to exceed annual uplifts in mobility allowances. Whilst in many ways positive, improvement in vehicle availability also led to reduced used car values. This, combined with increasing leasing costs and additional cost pressures during the
transition to EV, are reflected in increases to Advance Payments.
Motability Operations continue to heavily subsidise the cost of WAVs. Customers can also apply for Motability Foundation grants towards the costs (see p22).
## **Transition to Electric Vehicles (EVs)**
At the end of 2021, we approved a £300m support package proposed by Motability Operations to allow Scheme customers to transition to EVs at the same rate as the retail market. The support also included a free home charge point or, alternatively, a pre-paid charge card for public charge points.
During the year, we monitored the support, which had resulted in some competitive EV prices including a significant number available without the need for any additional customer payment.
Nationally, the rate of transition to EVs slowed in 2023 and the same was true on the Scheme. Towards the end of the year and into early 2024,
www.motabilityfoundation.org.uk **17**
Annual Report and Accounts 2023/24
## **CASE STUDY**
**“ Without the grant, we would have struggled to afford the new car. It has changed our lives”**
## **Eva, age 10, from Norfolk**
Eva, 10, lives in Norfolk with her family and received a Motability Foundation grant for the Advance Payment of their new car.
“Eva was born with CHARGE Syndrome,” explains her dad, Steven. “She is profoundly deaf, visually impaired, and struggles to walk on her own for any distance. She also has a tracheostomy, which means carrying around various equipment.
“Previously, we struggled to travel as a whole family by car. The one we had wasn’t big enough to carry all of Eva’s equipment, as well as everything else we needed as a family of five.
“Without the grant, we would have struggled to afford the new car. It’s changed our lives, giving us the freedom to go to the park with the kids’ scooters, to local beaches, or to the supermarket as a family. With the extra space, we can also make longer trips with luggage, equipment and supplies, and stay overnight.”
**18** www.motabilityfoundation.org.uk
## **Customer satisfaction with the Motability Scheme remained high and stable at 9.6 out of 10**
EV orders increased and were more than 10 per cent of total orders. Approximately six per cent of the live fleet is now EV, and that is increasing all the time.
## **Motability Operations Donation and Reserves**
Motability Operations donated £250m to the Motability Endowment Trust in September 2023, using profits from 2022 and 2023. Their remaining reserves will help provide financial security for Motability Operations and ensure the long-term sustainability for the Motability Scheme.
## **Scheme Oversight**
During the year, significant progress was made in establishing a new Scheme Agreement with Motability Operations and key terms were signed.
With the automotive landscape changing quickly, we commissioned an external consultant to identify how the Scheme might be affected. The review looked at vehicle manufacturing, how vehicles are sold through dealers, the consequences for discounts on new vehicles and the value of used vehicles. The review provided insight to inform our oversight of the Scheme and our dialogue with Motability Operations about the future outlook.
Governors also considered how our oversight might be further improved to ensure it remains effective. We carried out an internal review alongside commissioning external support from Farrer & Co LLP.
## **Aims for 2024/25**
Ensure that the Scheme continues to **1** operate to its current high standard, offering value for money and excellent customer service.
Seek to maintain price stability as **2** far as possible against a background of increasing cost pressures.
Complete work to renew the **3** Scheme Agreement with Motability Operations, including a new performance framework and updated KPIs, with a continuing focus on securing the best outcomes for disabled people.
Together with Motability Operations, **4** ensure that the fleet transitions towards EVs at broadly the same rate as the retail market, while ensuring that customers’ specific needs are addressed.
www.motabilityfoundation.org.uk **19**
Annual Report and Accounts 2023/24
STRATEGIC PILLAR
Grant-
Making
Ill//
## **STRATEGIC PILLAR**
## **Grant-Making**
The Motability Foundation supports individuals and organisations through its grant programmes. These are:
## **Grants To Individuals**
- Motability Scheme-related grants
## **Aims for 2023/24**
To continue to achieve high levels of **1** grant recipient satisfaction with their grant application. **ACHIEVED**
- Access to Mobility grants
## **Grants To Organisations**
- [ Impact grants]
- [ Innovation grants (see p41-42)]
To continue to grow and develop **2** our portfolios of grant programmes supporting other charities and organisations. **ACHIEVED**
In 2023/24, we sustained our level of support for Motability Scheme customers, providing £72.6m of grants to 15,142 people so that they could get a suitable vehicle from the Motability Scheme. As planned, we expanded our grants to organisations, awarding £23.2m to 43 organisations that support disabled people to travel in different ways. We estimate that these grant programmes will support 221,000 people to travel.
To continue to evaluate the impact of **3** our grant programmes. **ACHIEVED**
~~**The Motability Foundation** As planned,~~ ~~**supports individuals and we expanded our gra**~~ **nts to organisations** , awarding **£23.2m to 43 organisations** that support disabled people to travel in different ways
www.motabilityfoundation.org.uk **21**
Annual Report and Accounts 2023/24
## **Grants to Disabled People**
## **Motability Scheme-Related Grants**
Motability Scheme-related grants are put towards the cost of leasing a suitable car or WAV. All grant applications are means-tested to make sure that we provide funding to those most in need of support. Last year, we provided grants to 15,142 people worth £72.6m, in line with our financial support in 2022/23.
The demand for grants remained historically high but with some changes to the types of grants people applied for. The demand for Car and Vehicle Adaptations grants dropped, which may have been partly due to measures taken to support affordability (see p17). Applications for WAVs and Bespoke Passenger Solutions rose.
## **£14.7m**
## **Complex Driving Solutions**
Supports with the cost of adaptations so that people can access and then drive their vehicle, sometimes from their wheelchair. **452 grants**
## **£5.0m**
**Bespoke Passenger Solutions** Supports people with complex needs to travel as a passenger in their Scheme vehicle. **152 grants**
**----- Start of picture text -----**
£72.6m
total value of
Scheme-related grants
15,142
total number of
Scheme-related
grants
**----- End of picture text -----**
## **£25.4m**
**Car and Vehicle Adaptations** Supports customers with the cost of Advance Payments or adaptations to a vehicle that meets their disability needs. **10,538 grants**
## **£27.5m**
**Wheelchair Accessible Vehicles** Supports with the cost of Advance Payments and any adaptations customers need to use their WAV and secure their wheelchair in their vehicle. **4,000 grants**
**22** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## **Access to Mobility Grants**
Last year saw unprecedented demand for Driving Lessons grants, following repeated, unplanned media coverage of our Driving Lessons grant programme. The increased awareness led to an increase in applications. We were able to increase our grant-giving, and supported 5,404
people with a grant to learn to drive their Motability Scheme vehicle – more than double the previous year.
## **£0.1m Transitional Support and Additional Transitional**
## **Support**
For customers who have to leave the Motability Scheme following an unsuccessful DLA to PIP reassessment, where they lose their qualifying benefits. **80 grants**
## **£0.25m**
**----- Start of picture text -----**
£9.2m
total value of
Access to Mobility
grants
**----- End of picture text -----**
## **£8.8m**
## **Driving Lessons**
Help Scheme customers who have a provisional driving license learn to drive, or offer familiarisation lessons to help customers get used to adapted driving controls. **5,404 grants**
## **Access to Work**
Government Access to Work grants fund equipment for disabled people to use at work. This grant reimburses Social and Domestic Contribution people pay to use the equipment outside work. **109 grants**
www.motabilityfoundation.org.uk **23**
Annual Report and Accounts 2023/24
“ Day-to-day trips are easier now. If we go to the park, there is space to bring all our mobility equipment”
~~**Sarah, mum**~~ **of Becky, from Surrey**
## **Grant Applicant Satisfaction**
We monitor grant applicant satisfaction with our grant-making teams through an independent agency. During 2023/24, Scheme-related grant recipients rated their overall telephone experience 9.28/10 and our overall service 9.29/10.
In March 2024, we improved our online grant application system, ApplyOnline, to give grant applicants a better experience. Users can now apply using a mobile phone. They can upload
documents, track their application status, and communicate with us without having to call our Contact Centre. The system was re-developed with feedback from users to ensure that it was user-friendly and accessible to people with a range of disabilities.
It has passed the criteria for accreditation for the international Website Accessibility Standards, reviewed by Shaw Trust.
**We asked our beneficiaries to rate our service in 2023/24**
**Ease of completing application form**
**Ease of getting through Attitude / helpfulness Knowledge / expertise application form 8.62/10 9.49/10 9.24/10 8.77/10** 8.36/10 in 2022/23 9.46/10 in 2022/23 9.3/10 in 2022/23 8.65/10 in 2022/23
**24** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## **Grants to Charities and Organisations**
## **Impact Programmes**
In 2022/23, we launched six grant programmes for charities and organisations that provide transport, help disabled people to access it, or research how to make transport accessible. These grants focus on making an immediate impact on disabled people’s ability to travel.
In this second year, we increased the grant funding available as planned and awarded £23.2m to 43 organisations. We awarded the first grants from two of the six programmes – Reducing Barriers to Driving, and Research. The full range of grants will support an estimated 221,000 disabled people to make journeys across all our identified routes to impact.
The Research grant programme funded seven projects. These will engage directly with more than 120,000 disabled people, exploring topics such as school transport, barriers facing travellers with learning disabilities, and how autonomous transport may impact disabled people.
There was a surge of applications for the Travelling with Confidence programme. The nine grants awarded included providing training and confidence sessions to more than 1,900 people, plus mentoring and buddying schemes to 470 people to help them travel independently. They also included work to improve the attitudes of transport staff and transport users towards disabled people.
Monitoring from grants awarded under these six programmes in 2022/23 showed positive
## **Aims for 2024/25**
Develop the second phase of our **1** portfolio of Impact programmes that support other charities and organisations.
Continue to achieve high levels **2** of grant applicant satisfaction. Continue to evaluate and review **3** the impact of grant programmes.
outcomes for disabled people across the country. The success so far means that we decided to fund further grant programmes with another £50m allocation over three years from March 2025.
**221,000 disabled people** will be supported to make journeys through our grant programmes
www.motabilityfoundation.org.uk **25**
Annual Report and Accounts 2023/24
## **CASE STUDY**
## **Tyler, age 17, from Norfolk**
Tyler, 17, from Norfolk didn’t like long journeys until his family applied for a Motability Foundation grant through the Bespoke Passenger Solutions programme. Born with spastic quadriplegic PelizaeusMerzbacher disease, Tyler cannot walk or sit unaided. After receiving a grant for the Advance Payment and adaptations of a highly adapted vehicle, he is noticeably happier. “We call it ‘The Beast’,” says his mum, Teresa. “It’s so big! There’s a hoist to lift Tyler out of his wheelchair, lockers, a rock and roll chair to change him on, tinted windows for privacy and restraints for equipment.”
**“ Now, Tyler can comfortably travel for an hour to his favourite gym twice a week”**
Now, Tyler can comfortably travel for an hour to his favourite gym twice a week. “His condition is progressive, but boxing helps tremendously,” says Teresa. “He is much happier these days. Best of all, Tyler wants to go out.”
**26** www.motabilityfoundation.org.uk
## **Grant Types**
In 2022/23, we launched six grant programmes for organisations that provide transport, help disabled people to access it, or research how to make transport accessible. These grants focus on making an immediate impact on disabled people’s ability to travel.
## **Community Transport**
## **Active Travel**
## **Wheelchair Sector**
Funds organisations to develop, expand and improve local community transport provision for disabled people.
Improves and expands access to good quality and affordable active travel equipment to give people more independent travel options. Initiatives include wheelchair skills training and introducing disabled people to cycling.
Improves the provision of good quality, affordable wheelchairs.
## **Travelling with Confidence**
Supports a range of initiatives, such as helping disabled people to travel independently through travel training and mentoring, and influencing the design and delivery of transport services.
## **Research grants**
Supports other organisations to develop and expand on existing research for transport accessibility solutions. The findings should help more disabled people in the short term and produce data that can be accessed by all.
## **Reducing Barriers to Driving**
Aims to enhance and expand private transport options for disabled individuals beyond the Motability Scheme.
www.motabilityfoundation.org.uk **27**
Annual Report and Accounts 2023/24
## **Evaluating our Grant Programmes**
We evaluate our grant programmes so that we can understand the difference they make to disabled people’s lives. This allows us to make decisions about what we should fund, and how, in the future.
## **Driving Lessons Evaluation**
In 2023/24, we evaluated the impact of our Driving Lessons grant and found:
- [ Disabled people travel more frequently after ] obtaining their driving license or completing familiarisation lessons
- [ A 69 per cent increase in the number of people ]
reporting travelling daily
- [ An 85 per cent decrease in the reported ] use of taxis
When compared to our outcomes, we found that:
- [ 71 per cent of respondents reported a life-] changing or significant improvement in their ability to access people and places
- [ 61 per cent said they experienced increased ] independence and control over their travel decisions
- [ The programme provided at least £8.10 ] return in benefits for every £1 spent
## **We use six outcome areas to evaluate our impact**
**ACCESS EDUCATION** Increased ability to access Increased ability to access people and places education and training **WORK WELLBEING** Increased ability to work Improved sense of and pursue a career health and wellbeing **CONNECTIONS CHOICE AND CONTROL** Increased social connections Increased independence and and relationships control to make decisions
**28** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
**71 per cent** of respondents reported a **life-changing** or **significant improvement** in their **ability to access people and places**
**----- Start of picture text -----**
www.motabilityfoundation.org.uk XX
**----- End of picture text -----**
**Annual Report and Accounts 2023/24**
## **Grant Award Activity**
||**Grant Programme**|2023/24
2022/23
2023/24
2022/23
£
£
Number
Number
Awards made in Year|2023/24
2022/23
2023/24
2022/23
£
£
Number
Number
Awards made in Year|2023/24
2022/23
2023/24
2022/23
£
£
Number
Number
Awards made in Year|2023/24
2022/23
£
£
25,368,214
31,587,054
27,520,621
26,512,925
14,709,015
14,171,481
5,005,587
2,313,810
~~**72,603,437**~~
~~**74,585,270**~~
8,811,282
2,582,843
(1,000)
1,028,500
105,250
197,125
249,390
170,398
~~**9,164,922**~~
~~**3,978,866**~~
**81,768,360**
**78,564,136**
5,500,000
5,500,000
250,000
1,500,000
~~**5,750,000**~~
~~**7,000,000**~~
1,333,045
255,195
-
169,875
195,113
484,095
867,759
504,704
130,337
49,877
203,000
-
~~**2,729,254**~~
~~**1,463,746**~~
3,657,274
4,953,382
1,877,177
229,074
1,837,208
633,258
1,771,652
330,519
906,084
-
1,055,094
-
~~**11,104,489**~~
~~**6,146,233**~~
~~**19,583,743**~~
~~**14,609,979**~~
~~**101,352,103**~~
~~**93,174,115**~~
Charitable Expenditure
recognised in Year|
|---|---|---|---|---|---|
|||Awards made in Year|||Charitable Expenditure
recognised in Year|
|||2023/24
2022/23
£
£|2023/24
2022/23
Number
Number||2023/24
2022/23
£
£|
||Cars & Adaptations
Wheelchair Accessible Vehicles
Complex Driver Solutions
Bespoke Passenger Solutions
~~**Sh-Rltd Gt**~~|25,368,214
31,587,054
27,520,621
26,512,925
14,709,015
14,171,481
5,005,587
2,313,810
~~**72603437**~~
~~**74585270**~~|10,538
12,097
4,000
3,472
452
446
152
81
~~**15142**~~
~~**16096**~~||25,368,214
31,587,054
27,520,621
26,512,925
14,709,015
14,171,481
5,005,587
2,313,810
~~**72603437**~~
~~**74585270**~~|
||~~**cemeeae rans**~~
Driving Lesson Support
Stopped Allowance Support
Transition Support Payment (TSP) / ATS
Access to Work
~~**A t Mbilit Gt**~~|~~**,,**~~
~~**,,**~~
8,811,282
2,582,843
(1,000)
1,028,500
105,250
197,125
249,390
170,398
~~**9164922**~~
~~**3978866**~~|~~**,**~~
~~**,**~~
5,404
1,871
(1)
1,035
80
156
109
75
~~**5592**~~
~~**3137**~~||~~**,,**~~
~~**,,**~~
8,811,282
2,582,843
(1,000)
1,028,500
105,250
197,125
249,390
170,398
~~**9164922**~~
~~**3978866**~~|
||~~**ccess o oy rans**~~
**Total - Grants to Individuals**
Family Fund - Under 3s
Designability - Whizzybugs
~~**Gt t Oiti -**~~|~~**,,**~~
~~**,,**~~
**81,768,360**
**78,564,136**
-
-
-
-|~~**,**~~
~~**,**~~
**20,734**
**19,233**
-
-
-
-||~~**,,**~~
~~**,,**~~
**81,768,360**
**78,564,136**
5,500,000
5,500,000
250,000
1,500,000|
||~~**rans o rgansaons**~~
~~**Sil Gt**~~|~~**-**~~
~~**-**~~|~~**-**~~
~~**-**~~||~~**5750000**~~
~~**7000000**~~|
||~~**peca rans**~~
National Centre for Accessible
Transport (ncat)
Designability - EV charging
Extra Mile
User Research Grants
Transport Design Scholarships
New Vehicle Interface
~~**Ad t Oiti - Iti**~~|
- 20,000,000
203,000
-
-
679,208
1,402,518
593,204
381,017
-
~~**1986535**~~
~~**21272412**~~|
-
1
1
-
-
4
6
8
3
-
-
~~**10**~~
~~**13**~~||~~**,,**~~
~~**,,**~~
1,333,045
255,195
-
169,875
195,113
484,095
867,759
504,704
130,337
49,877
203,000
-
~~**2729254**~~
~~**1463746**~~|
||~~**wars o rgansaons nnovaon**~~
Community Transport
Active Travel
Wheelchairs
Travel Confdence
Barriers to Driving
Research
~~**Gt t Oiti -**~~|
~~**,,**~~
~~**,,**~~
5,504,595
8,924,526
4,992,043
711,519
3,112,805
1,949,799
4,662,360
991,557
2,934,898
-
1,997,397
-|
13
20
7
2
3
4
9
1
4
-
7
-||~~**,,**~~
~~**,,**~~
3,657,274
4,953,382
1,877,177
229,074
1,837,208
633,258
1,771,652
330,519
906,084
-
1,055,094
-|
||~~**rans o rgansaons**~~
~~**It P**~~|~~**23204098**~~
~~**12577401**~~|~~**43**~~
~~**27**~~||~~**11104489**~~
~~**6146233**~~|
||~~**mpac rogrammes**~~
~~**Ttl Gt d Ad**~~|~~**,,**~~
~~**,,**~~|
||~~**,,**~~
~~**,,**~~|
||~~**oa rans an wars**~~
~~**t Oiti**~~|~~**25190633**~~
~~**33849813**~~|~~**53**~~
~~**40**~~||~~**19583743**~~
~~**14609979**~~|
||~~**o rgansaons**~~
~~**d l**~~|~~**,,**~~
~~**,,**~~
|
||~~**,,**~~
~~**,,**~~
|
||~~**Gran Tota**~~
~~**106,958,992**~~
~~**112,413,949**~~
~~**20,787**~~
~~**19,273**~~|~~**106,958,992**~~
~~**112,413,949**~~|~~**20,787**~~
~~**19,273**~~||~~**101,352,103**~~
~~**93,174,115**~~|
The table sets out the grants awarded in the year. Grants are awarded subject to conditions to ensure that they are spent for the specified charitable purpose. A grant will be withheld in whole or in part if the conditions are not met. Accordingly, grants are recognised as charitable
expenditure where the conditions have been met. This means that in the table above, the Charitable Expenditure figure can vary from grants awarded. If a grant(s) is payable over several years, the award may have been before 2022/23.
**30** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## **CASE STUDY**
## **Mathy, age 33, from Nottinghamshire**
Mathy, 33, is a film industry freelancer. She lives with her parents in Nottinghamshire and received a Motability Foundation grant to fund the Advance Payment of her car and driving controls through the Complex Driving Solutions programme.
“My new car is fitted with adaptations that allow me to drive with confidence,” she says. “I have congenital myopathy affecting my limbs, kyphoscoliosis affecting my spine and restrictive lung disease. The pedals for the brake and accelerator are slightly raised and, as I can’t look over my shoulder, I have steering controls and panoramic mirrors. My work is tech-heavy too, so I have a lot of equipment to take around.
**“ The grant from the Motability Foundation has been instrumental in gaining my independence”**
“Being able to drive an adapted car gives me freedom of movement and enables me to live a full life. The grant from the Motability Foundation has been instrumental in me gaining my independence.”
www.motabilityfoundation.org.uk **31**
Annual Report and Accounts 2023/24
STRATEGIC PILLAR
Build
Awareness
and
Engagement
Il//
## **STRATEGIC PILLAR**
## **Build Awareness and Engagement**
The ways in which the Motability Foundation helps disabled people to make journeys have expanded significantly. Our communications work ranges from promoting our grants to sharing research which could help other organisations work towards making transport accessible.
## **Aims for 2023/24**
Establish and deliver consistent, impactful experiences and communications to raise awareness and promote understanding of our work to all our audiences by:
## **Raising Awareness of our Work Scheme-related grants:**
- [ Direct Mail to 287,813 people who received ] the Higher Rate Mobility Component of the Disability Living Allowance
- [ Direct Mail to 410,104 people who received ] the Mobility Component of the Personal Independence Payment
- [ Exhibited at seven UK exhibitions including ] The Motability Scheme Big Events, the Occupational Therapy Show 2023 and Naidex 2024
## **Supporting Organisations**
We support the organisations we fund to publicise their grants and promote their work. In 2023/24, we supported Transport Research Foundation, Spinal Injuries Association (SIA), Leeds-based organisations OPAL and AVSED, Pembrokeshire Association of Community Transport (PACTO), Spinal Muscular Atrophy UK, Back Up, My Life My Choice and Easilink Community Transport.
Evolving what we are known for by **1** successfully embedding the Motability Foundation brand internally and externally. **ACHIEVED**
Growing our channels and extending **2** our reach with all audiences by enhancing the digital experience. **ONGOING**
Continuing to work closely **3** with Motability Operations to drive awareness, understanding and consideration of the Motability Scheme, including reviewing the Scheme brand to ensure it is fit for purpose in the future. **ONGOING**
Improving understanding and support **4** of our work with government, policy makers and political stakeholders by delivering a comprehensive public affairs programme of activity. **ONGOING**
www.motabilityfoundation.org.uk **33**
Annual Report and Accounts 2023/24
## **Promoting Our Research and Innovation: Accessible EV Charging**
In November 2023, we hosted a panel discussion at the London EV Show on how to make public EV charging accessible. The London EV Show is one of the largest annual EV events, with more than 7,000 delegates and 4,000 companies participating. This was an excellent opportunity to raise awareness of our work on accessible charging, including the PAS 1899 public charging standard and our endorsement of PAS 1899 assessment schemes (see p42).
The panel was hosted by TV presenter and motoring journalist Ginny Buckley and included Catherine Marris, our Head of Innovation and Policy.
## **Public Affairs**
We rolled out a newly established public affairs programme. Activity included briefings with key ministers, shadow ministers and MPs, as well as newsletters and MP constituency car handovers.
## IPSOS Mori research showed that in 2023:
- [ 48 per cent of MPs ‘knew a little’ about us – ] an increase from 36 per cent
- [ The number of MPs who have ‘heard of ] but know nothing’ about us has decreased from 20 per cent to eight per cent
## **Growing Our Channels**
## **Digital channels**
Our website and its content were rebranded in August 2023. We now have a fresh lookand-feel, and we have expanded our content across blogs, video and animation. This led to a 31 per cent increase in followers across our social media channels over the financial year. Internal Communications channels also evolved to help build employee engagement through campaigns, supporting plans and forums. We introduced quarterly podcasts and a new system for e-news, achieving an open rate of 89 per cent – well above the industry average of 62 per cent.
**34** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
**----- Start of picture text -----**
May 2024 Issue 123
**----- End of picture text -----**
## lifestyle Discover a world of possibilities
All you need to know about The Big Event
**A dream trip to Vietnam**
**Adam Pearson talks creating real change**
**How to embrace the internet**
**----- Start of picture text -----**
Lucy
Edwards
On the wonders of having a car,
inspiring young blind people,
and becoming a Motability
Scheme Ambassador
Meet
**----- End of picture text -----**
## **LIFESTYLE MAGAZINE AND MOTABILITY LIFESTYLE POD**
Lifestyle is produced for Scheme customers and is one of the mostread magazines in the UK, with an estimated 820,000 readers. Last year, we launched the Motability Lifestyle Pod – a podcast series hosted by Samantha Renke, broadcaster and disability rights campaigner, and Sophie-Marie Odum, editor of Lifestyle magazine. The podcast complements the hard-copy magazine, offering bonus content and reaching a wider audience. It is available as audio and video with captions and a British Sign Language (BSL) signer. The transcript is also available online.
Lifestyle magazine has an estimated **820,000** readers
www.motabilityfoundation.org.uk **35**
Annual Report and Accounts 2023/24
## **Brand refresh**
We launched a refreshed Motability Foundation brand in August 2023. We updated our vision, brand narrative, photography, and look-and-feel. We changed our operating name to the Motability Foundation to help show the differences between the Motability Foundation, the Motability Scheme and Motability Operations, providing a smoother customer journey between the brands.
Our Internal Communications team managed the internal launch. We delivered organisation-wide training for all employees; offering face-to-face workshops, online e-learning modules and a new digital brand toolkit, accessed through our intranet. 87 per cent of employees said they fully understood the importance of why we re-branded.
## **Media**
During 2023/24, we increased our media activity, publishing 32 proactive news stories with the goal of amplifying the impact of the Motability Foundation’s initiatives. These news stories were in a variety of formats, including proactive press releases, collaborations with our grant partners, and announcements highlighting various projects and updates from across the Foundation.
## **Aims for 2024/25**
Continue to evolve what we are **1** known for by successfully embedding the Motability Foundation brand internally and externally.
Improve performance measurement **2** of our new digital platform and user journeys, and continue to clarify our offer and be transparent.
Build and evaluate awareness **3** plans for each grant programme and innovation project.
**The number of MPs who have ‘heard of but know nothing about us’ decreased from 20 per cent to eight per cent**
Continue to work closely with **4** Motability Operations to drive awareness, understanding and consideration of the Motability Scheme brand to ensure it is accessible, digitally focused and fit for the future.
Improve understanding and **5** support of our work with government, policy makers and political stakeholders by delivering comprehensive public affairs activity.
**36** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## **CASE STUDY**
## **Disability Action**
Disability Action provides driving lessons to disabled people. The organisation received £1,035,361 funding from the Reducing Barriers to Driving grant programme.
“Before receiving the Motability Foundation grant, we could not offer lessons outside the Belfast area due to the cost of providing lessons further afield,” says Mobility Centre Manager Angela Hutchison. “Now, students located two hours away are being supported.” The grant covered two instructors, two vehicles with adaptations, staffing costs and marketing to create awareness over three years.
**“ Now, students located two hours away are being supported. It’s so beneficial to our pupils”**
“This March and April, we completed 246 lessons, which is almost what we completed in one year previously,” says Angela. “It’s amazing and so beneficial to our pupils.”
www.motabilityfoundation.org.uk **37**
Annual Report and Accounts 2023/24
STRATEGIC PILLAR
Innovation
Ili/
## **STRATEGIC PILLAR**
## **Innovation**
## **Innovation Priorities Review**
Our Innovation Priorities Review engaged disabled people, stakeholders and staff to assess the impact of our innovation over the last three years and to understand what we need to do to make transport more accessible.
The review showed that existing modes of transport still aren’t getting the basics right for disabled people. These include:
- [ Reliable real-time digital travel information]
- [ Sufficient in-person staff assistance during ] in-the-moment service changes
Disabled people told us they want:
- [ To have enough information to make ] informed consumer choices, and to travel independently and safely
- [ Have accessibility as a ‘given’ rather ] than a ‘nice to have’
While disabled people are sometimes excited about potential future transport modes and technologies, particularly for journey planning, the impact of new technologies on disabled people is not well understood.
We will respond by being open and approachable with all our innovation projects, involving and co-creating with disabled people, and inviting early collaboration with stakeholders.
## **Aims for 2023/24**
Embedding the outcomes of our Innovation Priorities Review by:
Communicating with key stakeholders **1** on how their feedback impacted our decision making. **ACHIEVED**
Putting in place a consistent approach **2** to user insight within the innovation function. **ONGOING**
Starting a set of new innovation **3** projects and initiatives following the Motability Foundation’s first three years of impactful innovation activity. **ONGOING**
Continuing flagship initiatives we **4** know are impactful, such as working towards an equitable transition to EVs, improving the evidence base for accessible transport through the establishment of ncat, and grant funding user research in other organisations. **ONGOING**
www.motabilityfoundation.org.uk **39**
Annual Report and Accounts 2023/24
## **CASE STUDY**
## **Pedal Power**
Pedal Power received an Active Travel grant of £595,000 to support inclusive cycling across Cardiff and the south east of Wales.
“The grant from the Motability Foundation was an absolute lifesaver,” says Pedal Power Director Sian Donovan. “As a result, we can invest in more core staff and a computer system, enabling us to be more efficient and support more people.”
This includes a new cycling officer, who now leads visually impaired tandem rides. “Members go out every other Saturday,” says Sian. “They meet in the café and do 15-mile rides. Some have even signed up to the Tour de Gwent, a 30-mile social ride. Some of these service users weren’t coming before. They are going from strength to strength. It was a really difficult time for us, funding-wise, so it was amazing to get the grant.”
**“ It was a really difficult time for us, funding-wise, so it was amazing to get the grant”**
**40** www.motabilityfoundation.org.uk
## **User Research Grants**
We provided User Research Grants to Charities and Organisations exploring experimental and new ways to make transport more accessible for disabled people. Three organisations we funded published user research last year:
- [ RNIB: Inclusive Journeys identified the unique ] challenges people with sight loss experience when making journeys
- [ The Value of a Wheelchair report was ] published by The Wheelchair Alliance alongside Frontier Economics and Revealing Reality. The research found that the provision of high-quality wheelchairs can not only have a significant beneficial impact on disabled people’s lives, but also lead to financial benefits for the NHS and society as a whole. The report highlighted three policy changes that would make a significant difference to wheelchair provision
- [ The Public Mental Health and Transport report ] by Mental Health Foundation explored the
accessibility needs of people with mental health problems. The report showed that common issues include anxiety about lack of space, closeness of people, attitudes of staff, journey planning and sensory overload
## **National Centre for Accessible Transport (ncat)**
The National Centre for Accessible Transport (ncat) was founded by the Motability Foundation in 2022. It launched formally in February 2023 and is run by a consortium of organisations led by Coventry University. In 2023/24 ncat:
- [ Created the Community of Accessible Transport ] panel, made up of more than 1,000 disabled people with lived experience, as well as people who work in the transport or disability sectors. They will share transport experiences and ideas, learn from others, take part in research and find solutions to make transport more accessible.
www.motabilityfoundation.org.uk **41**
Annual Report and Accounts 2023/24
**Disabled people told us they want accessibility to be a ‘given’ rather than a ‘nice to have’**
- [ Consortium partner Policy Connect set up ] the Accessible Transport Policy Commission, chaired by Baroness Tanni Grey-Thompson DBE DL. The first of its kind, the Commission holds meetings in Parliament bringing together disabled people, transport professionals, policy makers and parliamentarians. It aims to improve public policies and everyday practice
## **Transport Scholarships**
We extended our scholarships project by awarding grants to three more universities. Funded disabled students will focus on new areas of research, including accessible transport policy and practice, and accessible transport design. The students work on complex transport issues that directly relate to their own lived experiences.
## **Electric Vehicles (EVs)**
We continued to encourage industry to use PAS 1899, the accessible charging standard for EV charge points that we co-sponsored.
We wanted to provide a way for providers to check if their charge points meet the standard, so we created an “endorsement” for the best PAS 1899 assessment schemes. AccessAble and BSI Assurance UK received our endorsement in 2023. Results from their assessments will be made available online so that disabled people can make informed decisions about where to charge their EVs.
We also commissioned the Energy Saving Trust to carry out research on the barriers to accessible EV design. Based on the recommendations, we developed a joint project with Motability Operations to make EVs more accessible for disabled people, including Scheme customers. The Motability Foundation is focusing on influencing government on issues such as making sure there are enough incentives for supplying electric WAVs. We have also grant funded the design charity Designability to explore new design ideas that could make EVs more accessible for disabled people.
**42** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## **New Priority Areas**
Following the Innovation Priorities Review, we will be broadening our research and innovation approach to cover a wide range of transport modes and disabilities. Our two new priority areas up to 2026 are:
- [ Finding solutions to improve existing transport ] in areas of greatest innovation opportunity
- [ Ensuring accessibility is a key part of future ] transport modes and technology
We also learned that disabled people want to know more about our work. We will ensure everyone has the opportunity to get involved earlier in our innovation process so that we can co-create a truly inclusive and accessible transport system.
## **Aims for 2024/25**
Continue to grow our innovation grant-making.
**1**
Explore new approaches for impact, **2** such as innovation partnerships.
Identify opportunities for inclusive **3** innovation in the future of transport in areas such as micro-mobility and autonomous vehicles.
Apply what we have learned **4** about user insight and involve disabled people consistently in our innovation projects.
Use our learning from research **5** and innovation to inform and influence key policy questions.
www.motabilityfoundation.org.uk **43**
Annual Report and Accounts 2023/24
## **STRATEGIC PILLAR**
## **Disability Charity**
Annual Report and Accounts 2022/23
## **STRATEGIC PILLAR**
## **Disability Charity**
## **Our People**
Over the last three years, we have transformed our approach to our people and culture. In December 2023, we were delighted to be awarded Platinum status by Investors in People, the highest level of accreditation. This significant achievement recognised our ongoing commitment to, and investment in, our workforce.
## **Employee Survey 2023**
In April 2023, we carried out an Employee Survey which gave employees an opportunity to express their views and identify areas for improvement. The previous one took place in August 2021, and the identified areas for improvement have been taken forward.
The 2023 survey achieved a 91 per cent participation rate. The results were positive and supported the view that the action plans were making a positive difference. 92.5 per cent of the survey results were better than, or equal to, the previous survey.
After the results were shared and consultations had taken place, a new organisational plan was formed alongside department plans to ensure a progressive approach.
## **Talent Management**
The Motability Foundation employed 261 FTE members of staff as of the end of March 2024; an increase of six per cent on March 2023. In a busy year, the Talent Management team
## **Aims for 2023/24**
Agree and implement organisation and **1** department action plans as a result of the most recent Employee Survey. **ACHIEVED** Ensure we continue building development **2** opportunities for our people. **ONGOING** Continue to focus on talent acquisition, **3** diversity and inclusion. **ONGOING** Implementation of the Estate Plan. **4 ACHIEVED** Continue to progress the estate, **5** environmental and sustainability initiatives. **ONGOING** Continue to refine and implement the **6** Information Technology Plan. **ACHIEVED** Overhaul our financial system **7** applications. **ONGOING** Conduct a strategic review of Motability **8** Enterprises Ltd. **ACHIEVED** Deepen our engagement with Motability **9** Endowment Trust fund managers, particularly upon Environmental, Social and Governance matters. **ONGOING**
www.motabilityfoundation.org.uk **45**
Annual Report and Accounts 2023/24
## **Employee Value Proposition**
We work hard to provide a rounded Employee Value Proposition, finding different ways to create a positive working experience, give employees a voice and hear their feedback. Initiatives include:
- **Wellbeing Champions** keeps a constant focus on mental health and wellbeing
- **Social Squad** offers social events; from barbecues to Christmas parties
- **Diversity and Inclusion Forum** discusses and plans different ways we can celebrate diversity
We work hard to provide a rounded **Employee Value Proposition** , finding different ways to create a **positive working experience**
filled 94 roles in 2023/24. More than 90 per cent of these roles were filled without agency involvement. There were also 38 internal career progressions and we experienced a positive voluntary attrition rate of 11.5 per cent, meaning we are managing to retain the bulk of our staff.
The remuneration of our employees is reviewed as part of an annual cycle. The process involves an analysis and external comparison of all roles against the market median rate, ensuring our salaries remain relatively competitive.
- **People Forum** focuses on the welfare of staff and consults on projects which affect people, policies and processes
- **Spotlight Awards** provides a regular opportunity for the whole organisation to nominate individuals and celebrate their achievements
- **Benefits** include two health insurance options, wellbeing days, enhanced shared parental leave and enhanced sick pay. These were enhanced following a consultation with employees in 2023
We also worked with Harlow College to provide work placements for students with supported learning needs, and this year have placed 10 students who have benefitted from workplace experience and coaching.
Our annual development programme ensures development opportunities are available to all. Linked to our performance management process, all employees now hold an individual development plan to support their career progression and career aspirations.
## **Pay Gaps**
## **Diversity and Inclusion**
The Diversity and Inclusion Forum continues to raise awareness and knowledge through internal initiatives in celebration of a wide range of cultural and religious events.
We continued to work with the Business Disability Forum to promote disability awareness, and in March 2024 we were delighted to achieve the Disability Confident Leader accreditation, which is the highest level achievable and reinforces our commitment to inclusion and diversity in the workplace.
We monitor and analyse the pay gaps for gender, ethnicity and disability. There is no difference in hourly pay on a job level basis between male and female employees. In other words, for generic roles such as Case Manager or Grants Enquiries Adviser, there are no salary differences between genders.
The April 2023 mean gender pay gap increased slightly by 1.2 per cent to 23.9 per cent from our last reported figure. The Senior Management Team remains committed to fair pay irrespective of gender, disability or ethnicity.
**46** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
We continue to be proactive in this area as we build on actions and initiatives aimed at reducing the gap.
The disability pay gap reduced by 2.4 per cent from the last reported figure. This is now 11.3 per cent in comparison to 13.7 per cent in November 2022. The ethnicity gap increased but remains positive at a figure of 1.6 per cent.
## **Estates Plan**
We purchased our existing offices, Warwick House in Harlow, during the year following a review of the alternatives. The purchase secures our existing and future investment in Warwick House and provides an opportunity, as the landlord, to have more control of the building.
## **Environment**
The Motability Foundation understands that we must take action to decrease our environmental impact and support the protection of the environment.
Our new Environmental Sustainability Action Plan (ESAP) sets out our approach to becoming a more environmentally sustainable organisation over the next three years and is a strong foundation for future action. The
Motability Foundation identifies the main contributors to our carbon emissions within the ESAP (the plan can be viewed on the Motability Foundation website) and the steps we will take to address these.
The Motability Foundation holds up-todate risk and opportunity registers in respect of environmental management. A report was commissioned before the acquisition of Warwick House which determined our flood risk as low.
## **Streamlined Energy and Carbon Reporting Statement (SECR)**
Annual greenhouse gas emissions from 01/04/2023 to 31/03/2024
The acquisition of Warwick House during the year has provided a new baseline for our carbon emissions. In 2023, we reported our occupied area, and in 2024 we additionally report all emissions associated with the estate and expanded our Scope Three reporting to include homeworking, waste, water, refrigerants and hotel nights.
**Performance in the Year on a Comparable Basis** Had we still been a tenant, the following SECR figures would have been reported.
**----- Start of picture text -----**
PERFORMANCE IN THE YEAR ON A COMPARABLE BASIS
TOTAL tCO2e BY SCOPE AND YE 31/03/23 YE 31/03/24 Annual Change
GHG PROTOCOL CATEGORY (tCO2e) (tCO2e) +/-%
Scope 1 (Total) 160.84 169.57 +5%
C0.1 Site Energy (Gas) 71.93 80.03 +11%
C0.2 Controlled Vehicles and Plant 88.91 89.54 +1%
Scope 2 (Electricity) Location-based 24.58 28.20 +15%
Scope 3 (Total) 6.60 6.80 +3%
C3 Fuel and Energy-related activities 6.60 2.46 -6.3%
All Scopes tCo2e (Gross) 192.01 204.57 +7%
**----- End of picture text -----**
**----- Start of picture text -----**
INTENSITY RATIOS
YE 31/03/23 YE 31/03/24 Annual Change
GROSS tCO2e/RELATIVE UNIT
(tCO2e) (tCO2e) +/-%
Intensity Ratio 1
0.821 0.772 +6%
tCO2e / FTE
Intensity Ratio 2
0.007 0.005 -29%
tCO2e / Sq. Ft
Intensity Ratio 3
0.002 0.002 -0%
tCO2e / Grant Spending
**----- End of picture text -----**
www.motabilityfoundation.org.uk **47**
Annual Report and Accounts 2023/24
Scope One and Two emissions have increased due to a 10 per cent increase in staff, although overall intensity ratios have reduced.
## **Revised 2024 Baseline for Future Years**
In line with section five action two of the “HM Government environmental reporting guidelines: Including streamlined energy and carbon reporting figures” (www.gov.uk) the Motability Foundation has chosen to set a new baseline for future years, which is set out below.
The acquisition of our office building in June 2023 has resulted in a larger scope for reporting, covering the whole building’s environmental impact under Scope One and Two which increases our environmental footprint. As a result, we report a revised baseline to ensure meaningful and consistent comparison of data and intensity ratios in future years’ reports. We have also improved our SECR disclosures by extending Scope Three reporting. Within Scope Three, home working and business travel are solely related to the Motability Foundation. Reported numbers across each Scope are expected to rise again next year due to owning Warwick House for a full year and our continued improvements in reporting systems.
## **Methodology**
Our emissions calculation is based on financial control in accordance with the principles of ISO 14064 and the WRI/WBCSD GHG Reporting Protocols (revised edition). The software tool CEn-Calc has been utilised in the calculation of the emissions, utilising conversion factors for the specific period reported as issued by the UK Government with the inclusion of well to wheel upstream factors, and other standard industry assumptions. Out of scope/ biogenic conversions are excluded.
For clarity, ‘Gross tCO2e’ has been developed using then National Grid standard carbon emission factor. Net tCO2e has not been included as we do not currently use REGO/RGGO certificated energy. It should be noted that the National Grid’s electricity mix has changed, affecting the conversion factors used. The GOV.UK Greenhouse reporting conversion factors for 2023 (used for the 2024 calculation) show that the UK Electricity CO2e factor has increased by seven per cent (compared to the 2022 factors – used for the 2023 calculation) due to an increase in natural gas use in electricity generation and a decrease in renewable generation.
Materiality: +/- four per cent returns a ‘High’
**----- Start of picture text -----**
YE 31/03/24
TOTAL tCO2e BY SCOPE AND GHG PROTOCOL CATEGORY
(tCO2e)
Scope 1 (Total) 331.11
C0.1 Site Energy (Gas) 80.03
C0.2 Controlled Vehicles and Plant 89.54
C0.3 Refrigerators 163.54
C0.4 Other -
Scope 2 Location-based 28.20
(Electricity) Market-based -
Scope 3 (Total) 325.96
C1.1 Water Supplied 0.27
C3 Fuel and Energy-related activities 59.49
C5 Waste Generated in Operations (Inc waste water) 63.46
C6 Business Travel 6.73
C7.2 Homeworking 114.37
C13 Downstream leased assets 81.64
All Scopes tCo2e (Gross) 687.27
**----- End of picture text -----**
**48** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## **CASE STUDY**
## **Enable, Scotland**
Enable received a £991,557 Travel Confidence grant to provide travel skills training to regional youth groups. “We identified a whole section of 8-to-18 year olds missing out on social activities,” says Enable Programme Manager, Lauren Redmond. “It was sometimes down to mental health, sometimes because their needs or disabilities were too complex for clubs like Scouts or gymnastics to manage, or sometimes because they simply couldn’t make the journeys.”
To bridge the gap, Enable created inclusive spaces for young people to socialise while broadening their awareness of how to travel.
“The grant is helping someone in almost every corner of the country,” says Lauren.
www.motabilityfoundation.org.uk **49**
Annual Report and Accounts 2023/24
level of confidence with the financial control basis used for the data collection, scope and boundary.
## **Intensity Ratio**
We have selected the following intensity ratios as these most effectively reflect our emissions performance, and enable development of our emissions management strategy and strategic decisions to be made.
**GROSS tCO2e/RELATIVE UNIT YE 31/03/24 (tCO2e) Intensity Ratio 1 2.593** tCO2e **/ FTE Intensity Ratio 2 0.011** tCO2e **/ Sq. Ft Intensity Ratio 3 0.007** tCO2e **/ Grant Spending**
The Motability Foundation will continue to seek to reduce our energy intensity on a likefor-like basis where practical.
## **Justifications for Undisclosed Information, Estimation and Comparability of Information**
- No comparison has been shown for the full data as a new baseline has been set within this report
- The Scope Three categories have expanded this year to include homeworking, water, waste, refrigerants, hotel nights, rented space and well-to-tank emissions, which can account for the overall increase in year-on-year emissions
- A number of Scope Three categories, such as commute to work, have been excluded due to lack of information or complexity
- Natural gas consumption for tenants has been calculated based on the percentage of the building’s floor area occupied by each organisation within Warwick House: 53 per cent for the Motability Foundation and 47 per cent for tenants
## **Measures Taken to Improve Energy Efficiency**
The Motability Foundation has taken the following principle energy efficiency actions:
- Replacement of the diesel pool car with an electric vehicle
- Created an Environmental Sustainability Action Plan (ESAP) for the next three years to support transition to carbon neutrality
- Continued progress on ISO140001 accreditation to allow efficient and evidenced monitoring and improvement of environmental performance
## **Environmental Targets**
The Motability Foundation has set a number of targets within our ESAP (more information available on our website) for the next financial year. The following are key focus areas:
- Review and plan for energy saving opportunities, including our heating and cooling systems
- Review the options for generating or purchasing renewable energy
- Purchase of a fully electric minibus to support increased staff and visitor use of public transport
- Offer an Environmental Sustainability
**50** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
In December 2023, we were delighted to be awarded Platinum status by Investors in People, the highest level of accreditation. This significant achievement recognised our ongoing commitment to, and investment in, our workforce.
Apprenticeship Programme
- Achieve and maintain ISO 14001 accreditation, working towards ISO 50001
- Develop and implement a three-year carbon reduction management plan
- Review all waste streams looking for ways to reduce waste to landfill
## **Finance Process Review**
We have mapped, and are working to streamline, all finance processes to enable us to embed best practice in our existing software. This is the first step in enabling us to upgrade core finance and related software in line with the overall IT strategy.
The Motability Foundation has a longterm ambition to become a carbon neutral organisation in line with the UK Government’s Net Zero Strategy when possible.
## **Motability Enterprises Limited (MEL)**
## **Strategic Review**
The ARC requested a strategic review of MEL in 2023. Following the review, ARC agreed to retain MEL as the Foundation’s trading subsidiary, and as a delivery vehicle for Lifestyle magazine. Affinity products offered by MEL will continue where they have a clear link to the Motability Foundation’s charitable object.
## **Control and Assurance**
## **Change Management**
Some 36 projects driving strategic or operational change were subject to a formal change management process, providing assurance to Governors that budgetary controls were in place throughout and operational controls were implemented.
## **Control and Assurance**
We continue to develop a comprehensive system of governance, risk, regulation, assurance and internal controls, overseen by the Audit and Risk Committee (ARC). Reporting to the Board this committee:
- Reviews the Motability Foundation’s budget, business plan and forecasts
www.motabilityfoundation.org.uk **51**
Annual Report and Accounts 2023/24
- Reviews financial performance
- Oversees the annual audit. This was the fourth audited by BDO, and ARC reviewed BDO’s independence, fees, proposed approach and materiality
- Oversees the Internal Audit plan and receives results of audits completed, ensuring independence, timely completion of actions arising and alignment with the risk management system
- Ensures that the risk register is complete, accurately assessed and reported, and appropriate to the agreed appetite. It also recommends changes to risk management strategy to the Board
- Ensures a full suite of policies is reviewed annually to ensure they remain up to date and meet the expectations of our regulators, including: Data Protection, Complaints, Vulnerable Customers, Risk Management, Health and Safety, Investment, Whistle Blowing, Financial Crime and Conflicts of Interest policies
and ensures effective controls are in place to mitigate cyber risk
- Reviews compliance arrangements including regulatory and legislative change and any breaches or serious incidents (there were none in the year)
- Reviews the Investment Risk Register, Treasury and Reserves Policies, and oversees investment manager and custodian regulatory compliance and related arrangements. The Investment Committee oversees investment policy and performance
- Asks representatives from the Motability Foundation to attend Motability Operations’ Audit Committee meetings and provide an update
- Asks the Board to review its Terms of Reference annually
- Oversees IT Security strategy and risks,
**52** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## **Developing our Future Strategy (2025-30)**
Our organisational strategy is reviewed every five years, setting out how we will support disabled people to make journeys through the Motability Scheme and establishing our wider work. We have begun developing our strategy, carrying out extensive consultation with our stakeholders and more than 1,000 disabled people.
## **Risk Management**
Our risk management framework is reviewed quarterly and scrutinised by senior management to confirm that risks to the successful delivery of our objectives have been accurately assessed and appropriate mitigation is in place and tracked. ARC monitors the resulting risk profile and reports its findings to the Board of Governors.
The Board reviews the Charity’s risk summary, approves changes to risk management strategy and regularly reviews its risk appetite and tolerances. The Charity has a generally low-risk appetite so as to deliver public benefit reliably to its vulnerable beneficiaries. For innovation, the risk appetite is moderate given the opportunities for future increased public benefit that successful innovation may provide
We strive to develop our risk culture and scan regularly for horizon risks. A summary of the key risks and their mitigations is on p54-55. Further information on financial risks is given on p60-62.
## **Aims for 2024/25**
**1** To conclude the Strategy Review.
To implement the foundations of **2** a new technology operating model covering capabilities, controls and an upgrade path for critical systems.
To continue growing the Motability **3** Foundation as a great place to work including talent development, diversity and inclusion, employee value proposition and environmental sustainability.
To review and update governance **4** and risk management, including ongoing programme of internal and operational audit activities.
www.motabilityfoundation.org.uk **53**
Annual Report and Accounts 2023/24
## Principal Risks and Mitigations
## **RISKS**
## **FACTORS**
## **MITIGATION**
## **Strategic Risk**
Our strategy is ambitious, yet we do not maximise the impact of our resources on the mobility of disabled people.
We do not keep up with, and understand, the changing requirements of disabled people.
Our programmes fail to meet the needs and expectations of disabled people.
Research and innovation projects have been established to identify and consider other growth routes.
Our Grants to Charities and Organisations programme has been developed and continues to evolve.
We regularly review and evaluate programmes to ensure they meet beneficiary needs, including consideration of behaviour due to the economy and the transition to EVs.
## **External Influences Risk**
We do not maintain the confidence of stakeholders and engaged parties because we fail to articulate and demonstrate the difference that the Motability Scheme (the Scheme) and our wider work as a charity makes for disabled people.
The UK and Scottish Governments are unable to work with us to redirect the mobility component of qualifying disability benefits.
Awareness of our grant programmes occurs outside of our control resulting in demand for our grants that we are unable to meet.
We are not seen to be delivering benefits and good service to beneficiaries.
Communications from the Motability Foundation and Motability Operations do not reach all disabled people to make them aware of, and understand, the Scheme and charitable grants.
The Motability Foundation is accredited by the Scottish Government. Scotland Act 2016, Social Security (Scotland) Act 2018 Order frame the relationship on social security.
A contract is in place with the Scottish Government. Media monitoring, PR and Communications campaigns are in place and evolving.
Impact and Evaluation Team established to understand and measure the ways in which we make a difference to mobility and quality of life, and to support learning across the organisation.
Motability has rebranded as the Motability Foundation and the Scheme rebranded as Motability Scheme. These changes provide clarity, mitigate the risk of confusion, and are fresh and digitally focused.
## **Environment Risk**
We do not keep in step with the UK position on the environment.
Motability Operations and Motability transport solutions should seek to be aligned to government carbon emission targets, with the Motability Foundation cognisant of its charitable object.
Develop and consistently review our Environment Agenda in concert with Motability Operations.
## **Compliance Risk**
Compliance with the Charity Commission requirements and ever increasing ethical, legal and regulatory obligations, for example General Data Protection Regulations (GDPR).
Fines and penalties resulting from non-compliance could lead to restrictions in our ability to fulfil our charitable objectives.
A robust compliance programme is in place which is reviewed quarterly by management and Governors. Internal audit, data protection, regulatory compliance and legal counsel capabilities have been established.
Data Protection and Data Security are the foundations for considering and developing new working practices and projects.
All staff are required to regularly complete training on regulatory matters.
**54** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
**----- Start of picture text -----**
RISKS FACTORS MITIGATION
Operational Risk The adaptation and convertor industry Collaborate across the industry to understand
We are unable, in the current cannot cope with the volume of demand demands and manage solutions where possible.
climate (transition to EVs amidst supply chain disruption and the
and supply chain disruption), transition to electric. Regularly review beneficiary feedback and
update operational and communications plans
to deliver our grant services
to Scheme customers. Beneficiaries express concerns over as appropriate.
grant-making.
A robust control environment, including an
The Motability Foundation’s
Loss of data or service availability due Information Security framework, seeks continuous
data or systems suffer a
malicious attack or other to cyber attack. improvement to meet evolving risk.
disruption to business
Business continuity plans regularly reviewed to
continuity.
ensure operational resilience.
Reputational Risk New grant programmes are not Continue to undertake research and use this
The Charity and the Scheme reviewed and considered. information to identify, assess and review new
do not evolve and we are grant programmes
The strategy evolves but communication
not seen to be using the
of the change is misunderstood. Effective communications plans delivering
resources and expertise at
consistent messages to all stakeholders and
our disposal with the intent
to deliver our vision. The Scheme fails to run effectively and efficiently. communicating the wider market context.
Focused oversight of the Motability Scheme, run by
Our oversight of the Scheme is brought Motability Operations, with regular reviews of the
into question. effectiveness of Scheme Oversight arrangements.
Close working with Motability Operations on
new products and services.
Financial Risk Future donations from Motability With Motability Operations, monitor the financial
Our investment strategy and Operations are volatile and unknown. impact of higher inflation, supply chain disruption
any future donations from and vehicle carbon emission targets on Motability
Motability Operations does Motability Foundation Endowments fail to Operations and on the Motability Foundation’s
deliver the required level of investments
not deliver sufficient income grant demands. Adjust spending plans as necessary.
return.
to support and sustain our
current and future ambitions. Regular review of fund managers’ performance
High inflation increases grant demand against the long-term CPI+4% return target.
and operating costs whilst reducing our
financial resources in real terms. Review available investments for general and
restricted funds to try to secure a better risk-adjusted
We do not manage short-term liquidity return. Seek operating efficiencies whilst also
requirements effectively. increasing charitable spending to get better
value for money in the short term.
Continue to monitor cash flow positions and
forecasts of grant spending.
**----- End of picture text -----**
www.motabilityfoundation.org.uk **55**
Annual Report and Accounts 2023/24
**“ Having a vehicle with wheelchair access has boosted my independence. I can attend doctors, dental and hospital appointments without my wife having to assist by getting me or my wheelchair in and out of the vehicle ”**
**Moosa, 64, from Gloucester**
**26** www.motabilityfoundation.org.uk
Annual Report and Accounts 2022/23
Financial
Review and
Results
Ili/
//iii
## **Motability Foundation** Consolidated Accounts for year ended 31 March 2024
The Motability Foundation’s charitable expenditure reached a new record high. In addition to the more than 20,000 individuals helped by a direct grant, Motability Foundation Grants to Organisations are expected to support a further 220,000 to make the journeys they choose – the largest number ever. This growth was supported by a donation from Motability Operations to the Motability Foundation’s Endowment to help secure the long-term financial support that disabled people need; in turn supporting a £50m further allocation for future grants to organisations out to 2028.
## **Record Charitable Expenditure**
Charitable expenditure rose again, by £11m or 10 per cent, to a record £124m (2022/23: £113m). This compares to the previous year’s stated plans to spend ca. £130m in 2023/24. This brings expenditure in the three-year period 2022/23-2024/25 to £237m versus the Governors’ aim to spend a record £350m in that time.
Grants rose by £8m, or 9 per cent, to £101m (2022/23: £93.2m) as Innovation grants grew, the Grants to Organisations programmes matured and there was exceptional demand for Driving Lesson grants. Together, these grants lifted the number of
people supported to more than 221,000 as outlined on p21, in addition to the 750,000 Scheme customers. All other charitable expenditure rose to £22.4m (2022/23: £20.1m). Within this is spending on innovation which, when added to Innovation grants, saw Innovation charitable spending rise by 50 per cent, and spending on Building Awareness and Engagement rose by 30 per cent. Within other charitable expenditure, support costs grew to £10m (2022/23: £9.1m) to support growth.
## **Growing Investment Income and Donation to the Endowment**
Consolidated income has two main components. The recurring component is income earned by the Motability Foundation’s investments (which fund short-term spending) and by the Motability Foundation’s Endowment (the Motability Endowment Trust or MET, which underpins long-term support for our beneficiaries). Higher interest rates for the full year, combined with the steady maturing of, and increase in, MET’s investments, again lifted investment income, to £59.4m (2022/23: £39.4m).
The second main component is donations from Motability Operations. In the medium term
this is the largest source of funding. In the near term, a donation is dependent on Motability Operation’s financial performance and capital requirements. The Motability Foundation’s activities have grown substantially as has the Motability Scheme, so this year Motability Operations donated £250m to MET (2022/23: £200m to the Motability Foundation’s general funds) to help the Endowment keep pace with the growth in Scheme customers’ future grant demand and wider external need. This donation has also contributed to the increase in investment income noted above.
## **Deficit on the General Fund, Surplus on Total Funds**
On the general fund, investments delivered income and gains net of investment management costs of £39.6m. After charitable expenditure of £124m (£113m 2022/23), this resulted in a deficit of £84.4m against the 2022/23 surplus of £95.5m. General funds therefore closed at £430m (2022/23: £514m) or about three years’ expected general funds expenditure, in line with the reserves policy expectation of two to three years.
The restricted fund supports beneficiaries who don’t qualify for certain benefits when transferred from Disability Living Allowance
**58** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## **Analysis of Total Expenditure**
**----- Start of picture text -----**
£1.1m £0.8m
£10.7m £9.1m
£18.9m £15.8m
£11.4m £10.2m
2023/24 2022/23
£101.1m £93.2m
2023/24 (£143m) 2022/23 (£129m)
■ Cost of Raising Funds £18.9m ■ Cost of Raising Funds £15.8m
■ Direct Grants £101.1m ■ Direct Grants £93.2m
■ Direct Charitable Activity £11.4m ■ Direct Charitable Activity £10.2m
■ Allocated Support Costs £10.7m ■ Allocated Support Costs £9.1m
■ Governance Costs £1.1m ■ Governance Costs £0.8m
Charitable Spend 87% Charitable Spend 88%
Cost of Raising Funds 13% Cost of Raising Funds 12%
**----- End of picture text -----**
to Personal Independence Payment. Grant expenditure, after a part release of the provision, was a credit of £0.1m (2022/23 expenditure: £0.2m) as re-assessment activity remained subdued at the Department for Work and Pensions. A full year of higher interest rates lifted net investment income and gains to £2.3m (2022/23: £1.5m). As a result, there was a surplus on the restricted fund of £2.3m (2022/23: £1.3m) and the closing restricted fund balance was £46.1m (2022/23: £43.7m).
MET received the £250m donation from Motability Operations and invested these monies, initially into credit funds and then gradually into real assets. Higher interest rates,
along with the steady maturing of the portfolio, led to increased Endowment income of £27.4m (2022/23: £19.7m). Investment management costs grew to £16m (2022/23: £12.1m), so net investment income once again advanced, to £11.4m (2022/23: £7.6m). Markets recovered in the last quarter of the year, resulting in net gains of £218m (2022/23: net losses of £18.2m). Together, the receipt of the donation and investment returns meant that the Endowment fund ended the year up by £480m (2022/23: down by £10.6m) with a closing balance on the Endowment fund of £1,704m (2022/23: £1,224m). Further detail about the Endowment can be found on p58.
The increase in the Endowment
and restricted funds was greater than the fall in general funds, and resulted in total funds available to support beneficiaries rising to £2,180m (2022/23: £1,782m). The Governors welcome this rebalancing towards longer-term funds, conscious that disability is a long-term issue affecting growing numbers of people.
## **Summary**
The Motability Foundation has responded to record grant demand amidst a cost-of-living crisis and a global supply shortage of vehicles with record charitable expenditure, helping more people than ever before through our grant programmes. Whilst activity on the restricted
www.motabilityfoundation.org.uk **59**
Annual Report and Accounts 2023/24
fund remained subdued, Motability Endowment Trust further matured its investment portfolio and put new funds to work. The Motability Foundation has now passed the mid-point in delivering its largest ever three-year spend total and will adapt its spending plans to the resources expected to be available in the years ahead.
## **Financial Risks**
The principal financial risks that the Motability Foundation faces derive from the Endowment portfolio (equity securities, debt instruments, property, infrastructure, other private investments, money market funds and cash) and the Motability Foundation’s general and restricted fund balances (debt instruments, money market funds and cash). These risks are inflation risk, market risk, credit risk and liquidity risk. In addition, there are limited fundraising risks. These risks are set out below, along with the measures taken to manage them.
**INFLATION RISK:** the risk that the
cost of achieving the Motability Foundation’s charitable goals rises faster than the value of the Motability Foundation’s and MET’s investments, undermining the ability to support grant-making. MET manages this risk through a diversified portfolio of long-term asset investments that should earn returns expected to keep up with, or exceed, the rate of inflation in the wider economy in the long term. The Motability Foundation manages this risk through diversifying its investments intended to meet charitable spending requirements
more than two years away into asset classes capable of producing a return near the Bank of England’s mediumterm inflation target of 2 per cent p.a.. Whilst the Motability Foundation seeks opportunities to improve low returns on secure investments in an environment of higher-than-target inflation, the Motability Foundation accepts the risk of some loss of real spending power for these funds. This ensures that these funds will maintain their nominal value with a high degree of confidence, thus meeting the Motability Foundation’s commitments to beneficiaries. The Motability Foundation is also delivering record charitable expenditure in order to reduce the loss of real spending power in the short term.
**MARKET RISK:** the risk that the prices of investments could fall or become more volatile. The Motability Foundation and MET manage this risk through a diversified asset allocation strategy of appropriate investments and through regular monitoring of market conditions and investment performance. For equities, MET holds diversified portfolios, appointing both passive and active managers, and through appointing active managers with differing investment styles. The Investment Committee regularly considers manager concentration risk, periodically reviewing any investment manager holding more than 20 per cent of the portfolio’s assets or for whom the Motability Foundation and MET represent more than 10 per cent of the strategy managed by any one fund manager. As a long-
term investor, MET accepts market volatility for long-term asset classes, particularly equities. For bonds and other debt instruments, risk is mitigated through diversification, focusing on higher-rated investment grade holdings, typically A or AA rated. Interest rate risk is mitigated through holding a diverse range of short maturities with a willingness to hold to maturity and by investing in floating rate instruments. In terms of foreign exchange risk, spending requirements for the next year are held solely in sterling, and other investments for general and restricted funds are hedged back into sterling. MET, through its investment managers, partially hedges its foreign exchange positions into sterling to mitigate currency risk. The residual foreign exchange risk is accepted by MET and is kept under regular review.
**CREDIT RISK:** the risk that a counterparty will default on its obligations. For all asset classes, the Motability Foundation and MET mitigate this risk by diversifying their holdings and by using custodians. For bond and money market funds, the Motability Foundation monitors market conditions, duration and credit quality regularly with investment managers. No one bank or bond exposure normally constitutes more than 10 per cent of cash and debt investments.
**LIQUIDITY RISK:** the risk that an asset cannot be sold for the expected fair price or due to the absence of willing buyers in the market (a market liquidity squeeze); that obligations
**60** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## **Charitable Expenditure by Grant Programme**
## **2023/24** (£101.2m)
|**2023/24** (£101.2m)||
|---|---|
|■ Scheme-Related Grants
■ Access to Mobility|£72.4m
£9.2m|
|■ Organisations|£19.6m|
|**Total**per table onp30|£101.2m|
**----- Start of picture text -----**
£19.6m
£9.2m 2023/24
£72.4m
**----- End of picture text -----**
## **2022/23** (£93.2m)
|**2022/23** (£93.2m)||
|---|---|
|■ Scheme-Related Grants|£74.6m|
|■ Access to Mobility|£4m|
|■ Organisations|£14.6m|
|**Total**per table onp30|£93.2m|
**----- Start of picture text -----**
£4m
£14.6m
2022/23
£74.6m
**----- End of picture text -----**
cannot be met because cash is not available (e.g. from a bank or money market fund) due to financial stress and/or a market liquidity squeeze; or because the Motability Foundation and MET have not managed their cash positions appropriately. The Motability Foundation and MET mitigate liquidity risk through diversified asset allocation strategies, a variety of asset managers, regular dialogue with its investment managers to understand potential risks, holding cash balances within the ring-fenced entities of UK regulated banks, and regular cash flow forecasting exercises.
**INCOME RISK:** the risk that income may fall below expectations because donations from Motability Operations
may be lower or later than modelled or because investment returns are lower than expected. The Motability Foundation has an erratic primary source of income: donations of surplus capital from Motability Operations. For this reason, the Motability Foundation’s general fund reserve policy is to normally hold two to three years’ spending in general fund reserves, acknowledging that the level might be above three years or below one year from time to time. The Motability Foundation receives professional advice on the returns to be expected from investments.
The Motability Foundation regularly models its spending against its current and potential future resource levels in 10-year scenarios every six months. The Endowment fund means
that the Motability Foundation can raise its sustainable level of spending over the modelled periods providing some, but not full, assurance that support will be available to beneficiaries in the future. It is inherent to the income uncertainty faced by the Motability Foundation that charitable spending will rise and fall over time. The Motability Foundation will curtail as necessary existing and planned programmes of spending to ensure financial sustainability.
## **FUNDRAISING RISKS:** charity
fundraising is a regulated activity. The Motability Foundation does not solicit donations. We gratefully receive a small volume of spontaneous donations each year, shown as
www.motabilityfoundation.org.uk **61**
Annual Report and Accounts 2023/24
voluntary fundraising income. Other Trading Activities income arises from sale of advertising space in Lifestyle magazine and from our affinity partnerships that are reviewed regularly to ensure that the products meet disabled people’s needs at a fair cost and that we comply with Financial Conduct Authority rules where appropriate.
The Motability Foundation acts as a conduit body to channel grants to Armed Forces’ veterans funded by Veterans UK, and those monies are dealt with in Note 21 to reflect that relationship. The risks to future donations from Motability Operations are discussed below in the Outlook – Overview section.
## **Reserves Policy and Position**
The Motability Foundation holds monies in reserve (the reserves) to meet the operating needs of its activities, to exploit opportunities for beneficiaries and to cushion the Motability Foundation’s beneficiaries against financial risks. The reserves policy sets out the rationale for the amount of reserves held in each category of fund. The category of fund that monies fall into is determined by the donor except for designated general funds where the purpose is determined by the Board of Governors as a reserved matter.
## **General Fund Reserve Policy**
Unlike most charities, the Motability Foundation has a particularly significant and unpredictable primary income source – donations from Motability Operations from
its surplus capital. For this reason, the Motability Foundation will normally hold between two and three years’ spending to cover the risks (and opportunities) of volatility in income and expenditure.
Given the unpredictable timing and scale of Motability Operations’ donations, general fund reserves may be more than three years’ spending or less than one year’s spending from time to time. The Motability Foundation models its financial outlook every six months in five-to10-year scenarios which, as part of that exercise, updates the Motability Foundation’s expectations of the general fund reserves position across time.
At 31 March 2024, the general fund reserve stood at £430m (2022/23: £514m). General Fund Charitable Expenditure is expected to rise to ca. £130m-140m. This means that the general fund reserve represents 3.1 years’ prospective charitable expenditure (2022/23: 3.9 years), underpinning the Motability Foundation’s goal of delivering record charitable spending at a time of high demand from beneficiaries.
Free reserves, i.e. general funds excluding intangible and tangible fixed assets and designated funds, expressed as years prospective charitable spending, fell. Free reserves stand at £389m (2022/23: £468m) or 2.8 years’ prospective spend as compared to 3.6 years’ last year.
Future spending plans are likely to see free reserves fall further, potentially below two years’ charitable expenditure.
## **Designated Fund Reserve Policy**
Designated funds are part of general funds and nominated for a specific purpose by the Board of Governors. The designation(s) can be removed if financial circumstances necessitate this, so normally designated funds are not distinguished within general funds for the purposes of this policy.
Within general funds as at 31 March 2024, the Board of Governors had designated a reserve for Grants to Charities and Organisations to be awarded over three years and the balance stood at £32.8m (2022/23: £43.9m).
## **Restricted Fund Reserve Policy**
Restricted funds are subject to constructive trusts in law which means they may only be used for the purpose nominated by the donor. A restricted fund will have a relevant time period, which may be up to a decade or more. At present, the only restricted fund is the Personal Independence Payments Transitional Support Programme which funds support to individuals who lose certain mobility benefits when assessed for eligibility to receive Personal Independence Payments when currently in receipt of Disability Living Allowance.
Lower activity at the Department for Work and Pensions led to a lower value of grants awarded, outweighed by the impact of higher interest rates. As a result, the value of this fund rose in the year to £46.1m (2022/23: £43.7m). The funds on hand are expected to be sufficient to meet future expenditure once activity recovers.
**62** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## **Expendable Endowment Fund Reserve Policy**
The Motability Foundation’s Endowment fund is held by the Motability Endowment Trust (MET), a separate legal entity and a linked charity (formerly known as the Motability Foundation). MET’s sole purpose is to support the Motability Foundation, providing a degree of financial stability to enable the Motability Foundation’s grant programmes to continue when donations from Motability Operations fall below expectation or a donation cannot be made due to economic conditions. The Motability Foundation, in its role as sole corporate Trustee of MET, has determined that MET’s expendable Endowment reserve policy is:
– To maintain the Endowment’s real spending power in the mediumto-long term for the benefit of the Motability Foundation’s activities and beneficiaries
– Other than in delivering the financial strategy’s risk appetite as from time to time approved by the Board, to only draw from the Endowment’s capital when a permanent substantial improvement to disabled people’s transportation can be obtained – a ‘once-in-a-generation’ opportunity (since such an opportunity would reduce future calls on the Motability Foundation’s funds and thus on the Endowment). A decision to spend Endowment capital in this or any other circumstance is reserved for the Board of Governors acting as corporate Trustee, usually upon the recommendation of the Audit and
Risk Committee in consultation with the Investment Committee. The Endowment fund represents the net assets of MET. These rose in value by £480m, or 39 per cent, to £1,704m from £1,224m the previous year as a result of a donation from Motability Operations and positive investment returns in financial markets. Further detail on the performance of MET can be found on p66-68.
The Reserves Policy is reviewed annually by the Audit and Risk Committee, which may recommend amendments to the Board of Governors.
## **Investment Policy and Returns**
The Motability Foundation’s general and restricted funds have specific investment policy provisions. General funds are invested in assets that provide short-term liquidity and are likely to preserve their nominal value and otherwise in diversified credit assets that are likely to earn a return in line with the Bank of England’s long-term inflation target or ca. 2 per cent p.a.. At 31 March 2024, the Motability Foundation’s general fund financial assets were earning a weighted average yield of 5.96 per cent (2022/23: 5.38 per cent). Restricted funds are invested in assets that provide short-term liquidity and are likely to preserve their nominal value with a high degree of confidence and otherwise in diversified credit assets that are likely to earn a return in line with the Bank of England’s inflation target of 2 per cent p.a.. At 31 March 2024, the Motability
Foundation’s restricted funds were earning a weighted average yield of 4.60 per cent (2022/23: 4.52 per cent). MET’s investment policy is to invest in diversified long-term assets in accordance with an asset allocation and responsible investment policy so as to earn a long-term target investment return of CPI+4% after costs. More information can be found on MET and its investments on p66-68.
The Motability Foundation and MET pursue these investment policies that have an aligned approach to responsible investment. Advice on the investment policies and on the respective portfolios is received from Lane Clark & Peacock, Wilshire Associates and the Chief Investment Officer. The appointed managers’ Ethical, Social and Governance policies and investment processes have been reviewed during the year. The Board of Governors have reviewed the Motability Foundation’s and MET’s treasury and investment policies during the year.
## **General Fund Underlying Operating Deficits Over Time**
As investment gains and losses can be volatile and Motability Operations’ donations can be uncertain as to value and timing, excluding these significant but volatile figures gives a useful measure for the underlying rate that the Motability Foundation is using up its general funds – the general fund underlying operating deficits columns in the graphic on p64. The Motability Foundation’s general fund charitable expenditure
www.motabilityfoundation.org.uk **63**
Annual Report and Accounts 2023/24
## **General Fund Underlying Operating Deficits 2019-2024**
**----- Start of picture text -----**
£140
£123.7
£120 £113.1
£100
£78.8
£80
£55.0
£60
£38.4
£40
£30.4
£20.9 £19.3
£20
£1.8 £2.4 £0.9 £1.4
£0
2019 2020 2021 2022 2023 2024
Operating Deficit Investment Income Charitable Expenditure
Million £s
**----- End of picture text -----**
(purple line graph in the graphic above) has grown in recent years, funded by donations from Motability Operations. More recently, general fund investment income (yellow line graph in the graphic above) has grown, albeit from a low base, in the last two years as interest rates have risen.
Overall, the graphic shows the impact of rising general fund charitable expenditure has been softened by rising investment income, and the underlying general fund operating deficit is now ca. £95m p.a.. The Governors keep future spending plans under review. As discussed below, the outlook for donations from Motability Operations is uncertain, and future expenditure will be adjusted as necessary.
## **Pension Schemes**
The Motability Foundation operates a defined contribution pension scheme
for its employees and has a closed defined benefit pension scheme. The costs of the pension schemes charged to the Statement of Financial Activities are shown in Note 8 to the accounts.
The defined benefit pension scheme shut to new members in 2005 and to future accrual in 2012. At 31 March 2024, the pension fund’s assets and liabilities were £17m and £18.1m (2022/23: £18.1m and £18.9m) respectively, resulting in a deficit of £1.1m (2022/23: deficit of £0.7m). Further information is given in Note 22 to the annual accounts. The last triennial actuarial valuation took place as at 31 March 2022, updated to 30 June 2022, and showed the Motability Scheme’s assets were £21.2m and its liabilities were £21.1m, resulting in a surplus of £0.1m in the year. The Motability Foundation made contributions of £0.1m (2022/23: £0.1m).
## **Outlook – Charitable Spending and Income**
The Governors have set a planning range for charitable expenditure in 2024/25 of £130m-£140m, in line with the maturing of the Motability Foundation’s various charitable programmes. In the absence of a general fund donation from Motability Operations, this would be expected to result in a substantial deficit.
The Motability Foundation’s principal source of income is donations from Motability Operations. Motability Operations invests its profits back into supporting disabled people, principally through improving the offer to them and secondarily by donating surplus capital to the Motability Foundation.
The gradual unwinding of global supply chain difficulties is reducing the upwards pressures on the price of new vehicles (favourable) and of
**64** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
the price obtained for used vehicles (unfavourable). The balance of these effects varies over time. The current expectation is that Motability Operations’ profitability will decline given the fall in second-hand car prices in 2023, and there is the potential for further falls. Meanwhile, Motability Operations needs to set aside additional capital to support the current growth in the Scheme fleet. This represents something of a return towards ‘normal’ over the next three to five years. The likelihood of further donations from Motability Operations in the near term could therefore be lower.
Meanwhile, the Motability Foundation’s grant spending on Access to Motability and Charities and Organisations programmes is reaching maturity. The cost-ofliving crisis may abate somewhat as inflation has fallen significantly.
The planning implication is that the Motability Foundation’s charitable spending could peak in 2024/25 and 2025/26, and then potentially decline as existing programmes end. This outlook will be kept under review.
The Motability Foundation enters this period in a healthy financial position, supported by the maturing portfolio of the Endowment, meaning that the Motability Foundation should deliver on its three-year (2022/23 to 2024/25) intent of £350m charitable expenditure.
## **Outlook – Liquidity and Going Concern**
At 31 March 2024, cash stood at £33.6m (2022/23: £30.4m). The Motability Foundation’s general fund held cash, money market instruments, deposits and investment grade bonds maturing within one year totalling £145m (2022/23: £127m). The balance of the cash required will be made up from asset disposals.
The restricted fund held cash, money market instruments, deposits and investment grade bonds maturing within one year of £34.7m (2022/23: £33.5m) with which to meet grant payments. A further £11.4m (2022/23: £10.7m) was held in relatively short duration credit assets.
At the year end, MET held cash and money market instruments of £46.7m (2022/23: £134m). MET also had contingent investment commitments of £120m (2022/23: £144m). The balance of cash required will be made up from asset disposals.
Thus, at 31 March 2024, the total of cash on hand and maturing assets that can deliver cash if required in 2024/25 in the general and restricted funds to meet charitable expenditure and grant commitments is £180m (2022/23: £161m).
Outstanding grants, which had been growing mainly due to the difficulty of sourcing vehicles for our beneficiaries, have now steadied at £79m (2022/23: £76m). This balance is expected to shrink in the year ahead if vehicle supply improves. Restricted fund spending could increase if Department for Work and Pensions activity levels were to recover. Both these matters are
carefully monitored. The diversified base of credit investments held by the general and restricted funds will ensure liquidity is available in good time as either trend will unfold over a period. The cash on hand and maturing over the year provides a substantial cushion in the event of a shock to credit markets that might delay the ability to realise other investments for full value. The Governors are satisfied that the Motability Foundation and MET have the liquidity needed to meet expenditure and investment commitments in 2024/25.
The Motability Foundation reviews its future spending plans in 10-year scenarios every six months to allow for differing levels of future income, principally donations from Motability Operations and different levels of future spending. General funds as at 31 March 2024 were £430m (2022/23: £514m), including the cash on hand and maturing from assets over the next 12 months outlined above. The Motability Foundation will reduce charitable spending where necessary. The Motability Foundation’s future plans, budgets, reserves levels and cash flow forecasts for a period of more than 12 months from the date of signature of these accounts have been prepared by management and reviewed by the Governors.
On this basis, the Governors believe that the going concern assumption continues to be appropriate and that the Motability Foundation has a sound financial basis upon which to plan for the future with no material uncertainty.
www.motabilityfoundation.org.uk **65**
Annual Report and Accounts 2023/24
## **Motability Endowment Trust** Summary of the Year
Motability Endowment Trust (MET) received a donation of £250m (2022/23: £nil) from Motability Operations and initially invested this in credit assets pending gradual onward investment into suitable long-term real asset holdings. Coupled with a rise in markets over the year, total funds rose to £1,704m (2022/23: £1,224m). Income and investment management costs also rose, with net income again rising to £11.4m (2022/23: £7.6m). The portfolio continues to mature as private asset classes are added to be in line with the intended asset allocations.
## **Context**
Whilst Covid-19 supply chain issues have receded, the impact of the Ukraine-Russia war and unrest in the Middle East have continued to affect markets. Central Banks raised
interest rates in response to higher inflation. By the end of the financial year, inflation was substantially lower (although not yet at the levels targeted by Central Banks) and there were signs that interest rates would fall, boosting investment values for a wide range of asset classes. Sterling proved relatively stable across the year. Elections are due in 2024 in countries containing half the world’s population, and the rise in populism across the globe may introduce new political and economic risks.
## **Asset Allocations**
As a long-term investor, MET is focused on maintaining the value of its spending power against inflation. MET can wait out short-term volatility in financial markets. Its focus on a portfolio of long-term investments that should ultimately rise in value
if inflation rises was reviewed during the year with MET’s advisers and remains sound. The Motability Foundation, as the corporate Trustee, keeps the investment strategy under review.
During the year, MET completed the transition from multi-asset managers to direct holdings and has made substantial progress in investing the £250m donation from Motability Operations into long-term assets, leaving a limited pool of cash and liquid debt securities at the year end.
The revised asset allocations are given in the table and illustrated in the graph below, showing the evolution of the portfolio over recent years. The main feature is the rise in, and diversification of, real asset holdings.
|~~**Valuations: £ million**~~
~~**ASSET CLASS**~~
~~**31 March 31 March**~~
~~**31 March**~~
~~**31 March**~~
~~**31 March**~~
~~**2020**~~
~~**2021**~~
~~**2022**~~
~~**2023**~~
~~**2024**~~
~~Equity Securities~~
~~325~~
~~632~~
~~858~~
~~811~~
~~1,074~~
~~Debt Securities~~
~~207~~
~~173~~
~~89~~
~~9~~
~~94~~
~~Infrastructure and Property~~
~~-~~
~~-~~
~~25~~
~~147~~
~~265~~
~~Other~~
~~38~~
~~95~~
~~120~~
~~126~~
~~224~~
~~Money Market Instruments~~
~~281~~
~~244~~
~~131~~
~~123~~
~~42~~
~~Cash~~
~~160~~
~~10~~
~~12~~
~~8~~
~~5~~
~~**Total**~~
~~**1,011**~~
~~**1,154**~~
~~**1,235**~~
~~**1,224**~~
~~**1,704**~~
~~**Long-term Performance Benchmark: CPI +4%**~~|~~**Investment performance fgures % p.a.**~~
~~**Year to 31**~~
~~**Year to 31**~~
~~**Since**~~
~~**March 2023**~~
~~**March 2024**~~
~~**Inception**~~
~~(1.5)~~
~~23.1~~
~~11.4~~
~~(1.1)~~
~~7.2~~
~~1.9~~
~~(8.3)~~
~~2.3~~
~~(3.1)~~
~~4.9~~
~~9.7~~
~~7.8~~
~~1.2~~
~~3.2~~
~~1.1~~
~~0.4~~
~~3.3~~
~~0.9~~
~~**(0.9)**~~
~~**17.1**~~
~~**7.5**~~
~~**8.6**~~|
|---|---|
**66** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## **Investment Performance**
The value of the Endowment rose by £480m to £1,704m (2022/23: £1,224m). The largest contributor to this was the receipt of the £250m donation from Motability Operations. Investment gains delivered a rise of £218m (2022/23: loss of £18.2m) whilst net investment income contributed a further £12m (2022/23 £7.6m).
The positive returns in the year meant that the portfolio has been resilient against the relatively high inflation of the last two years as measured by the UK Consumer Price Index (CPI) and has closed the gap somewhat versus its longterm investment return target of CPI+4% after costs. As noted, as an Endowment, MET has the advantage conferred on long-term investors of being able to wait out periods of underperformance.
The continued investment into long-
term assets drove both investment income and investment management costs higher, to £27.3m (2022/23: £19.7m) and £16m (2022/23: £12.1m) respectively. The growth in net income to £11.4m, against £3.9m two years ago, is in line with the steady expected increase as the portfolio matures.
## **Governance and Management**
MET’s sole purpose is to support the Motability Foundation. As disabilities are often long term, it is important to sustain the Motability Foundation’s grant-making for our beneficiaries. MET provides a degree of financial stability to the Motability Foundation’s grant-making activities, enabling grant programmes to continue when donations from Motability Operations fall below expectation, or a donation cannot be made due to economic conditions.
It is intended that the Endowment’s capital will only be drawn upon to fund ‘once-in-a-generation’ opportunities that will greatly and permanently improve transportation for disabled people because the resulting reduction in beneficiary need will reduce the required size of MET.
The Motability Foundation is MET’s sole corporate Trustee. MET and the Motability Foundation have the same charitable objects. MET is an expendable Endowment, established by trust deed in September 2019 and legally registered as The Motability Endowment Trust with the Charity Commission in England and Wales as a linked charity under registration number 299745-1.
MET does not prepare separate financial statements; its results are presented within the Motability Foundation’s consolidated financial statements, included as the
## **Investment Values by Asset Class** at 31 March
**----- Start of picture text -----**
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
2020 2021 2022 2023 2024
£million
**----- End of picture text -----**
■ Equity Securities ■ Debt Securities ■ Infrastructure and Property ■ Other ■ Money Market Instruments ■ Cash
www.motabilityfoundation.org.uk **67**
Annual Report and Accounts 2023/24
Endowment column in the Statement of Financial Activities. MET’s Investment Committee operates within terms of reference delegated from the Trustee and within the scope of the investment policy, including an asset allocation strategy and a responsible investment policy, approved by the Trustee. The terms of reference for the Investment Committee and the investment policy are reviewed regularly. MET has appointed a Chief Investment Officer to advise upon and support the implementation of the investment policy and the monitoring of investment managers’ performance. The primary external investment adviser is Lane Clark & Peacock, and supplementary advice is received from Wilshire Associates on venture capital and private equity investment selection.
The investment policy targets a long-term investment return of inflation plus four per cent (CPI+4%, the inflation measure is the UK consumer price index) after costs. This level of return is intended to maintain the capital of the Endowment and so support grant-making for future generations of beneficiaries. The
investment policy is communicated to MET’s fund managers. The fund managers’ ethical, social and governance engagement policies and processes were kept under review during the year. Further fund managers were evaluated, including their approach to responsible investment, and appointed. The principal fund managers are noted on p132.
The principal financial risks are set out along with their mitigation more fully in the Financial Review on p54-55. The Investment Committee reviewed inflation, market and currency risks with their advisers and concluded that the long-term strategy of holding a portfolio of diversified long-term investments capable of delivering CPI+4% was sound. The Endowment portfolio is partially hedged into sterling given that the Motability Foundation’s expenditures are denominated in sterling; residual currency risk is accepted. Counterparty risk is mitigated through diversifying fund managers and custodians, and by legal and investment due diligence. Liquidity risk is managed through cash flow forecasting, carefully sequencing buy and sell trades.
## **Outlook and Plans for the Future**
In recent years, geopolitical instability and consequent risks have put a brake on economic performance. Commentators disagree as to whether this is an aberration or a return to more normal times. In either case, a long-term focus on investments capable of growing in line with inflation has proven to be appropriate. Periods of under- and over-performance should be expected.
MET will continue to add steadily to its holdings in private asset classes whilst keeping its risks and fund managers’ performance under review. Liquidity is carefully monitored and is sufficient for current plans.
As commented on in last year’s Annual Report, it may take some time for the portfolio to catch up with its investment return target – this year’s positive return is a useful step in that direction, but future progress could be volatile in the current environment. Nevertheless, given the long-term perspective of the Endowment, the Trustee is confident that MET is well positioned to support disabled people to make the journeys they choose in the future.
**68** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
**“ I would never have learned to drive if it wasn’t for the Motability Foundation grant. I couldn’t have afforded lessons. Previously, I used taxis, buses, or got lifts from my dad” Donna, 40, from Gwent**
## **Governors’ Report**
## **The Accounts comply with the requirements of the Charities Act 2011, the Royal Charter, the Statement of Recommended Practice (SORP) 2019 and FRS 102.**
## **Thank you from the Chair**
“I would like to thank my fellow Governors for their invaluable support. Sukhi Clark stood down, and her contribution is greatly appreciated. Two new Governors joined us in the year: Merlyn Lowther has more than 40 years’ experience in the finance sector and holds appointments in the education sector; Jackie Driver has extensive experience in dismantling systemic discrimination and creating successful processes for monitoring and measuring advances in social justice.”
On p134, the Motability Foundation’s Patrons, Life President, Life VicePresident, Governors and any past Governors who served during the year are shown, along with key executive employees. Professional advisers are shown on p132. The registered office address is on the back cover.
The Charity is governed by its Royal Charter, granted on 18 May 1988, incorporating amendments made on 08 December 2005, 11 November 2020 and 16 February 2022.
## **Structure, Governance and Management Governors and Members**
normally serving a maximum of three terms. The Board’s Nominations Committee makes recommendations on appointments to the Board. The Governors all give their time to the Motability Foundation on a voluntary basis and receive no remuneration. In accordance with the Royal Charter, Governors may be compensated for loss of earnings, and out-of-pocket expenses may be reimbursed.
## **Committee Structure and Purpose**
Our Royal Charter sets out our governance structure, which includes Members and Governors. Governors are appointed from the membership at the Annual General Meeting (AGM).
## **Public and Charitable Benefit**
The Charitable Object of the Motability Foundation is to facilitate the relief and assistance of disabled people in connection with the provision of personal and other transportation.
Any individual can apply to the Board for election as a Member, provided they are not a paid employee of the Motability Foundation. Governors are generally appointed from this body, but if no current Member has the necessary skill or experience the Board will seek a new Member. Members form the body corporate and are entitled to vote at AGMs.
When recruiting new Governors, the Board aims to attract a diverse range of candidates who have skills that would be beneficial to the foundation. It recognises diversity and inclusion and the value individuals from different backgrounds, expertise and experience bring to the Motability Foundation. All Board appointments are based on merit whilst ensuring an appropriate balance of skills and expertise, including lived experience of disability.
Building a future where all disabled people have the transport options to make the journeys they choose is the Motability Foundation’s contribution to society throughout the United Kingdom.
This Annual Report reviews the work of the Motability Foundation over the past year and sets out the aims for 2024/25. In reviewing performance and future aims, Governors have due regard for guidance published by the Charity Commission on public benefit and have complied with Section 17 of the Charities Act 2011 in this respect.
The Board of Governors is ultimately responsible for the overall control and strategic direction of the Motability Foundation, and for the protection of its assets.
All new Governors undertake an induction programme, which includes meeting with the Chief Executive,
Governors are appointed by the Board for a term of three years,
www.motabilityfoundation.org.uk **71**
Annual Report and Accounts 2023/24
## **Structure, Governance and Management Governors and Members**
## Committe Structure and Purpose
**----- Start of picture text -----**
Grant-Making
Scheme
Audit and Risk and Investment Nominations Remuneration
Oversight
Committee Innovation Committee Committee Committee
Committee
Committee
Honorary
Robin Hindle Ed Humpherson
Treasurer David Charles Manby MBE
Fisher OBE CB FCA
Hunter FCA
Richard Dr Juliana David Hunter David Hunter Ed Humpherson Richard
Cartwright ACA Onwumere FCA FCA CB FCA Cartwright ACA
Tony Davis Professor Tony Davis Robin Hindle Other Dr Hannah
William Webb Fisher OBE Governors Barham-Brown
(until Sept 2023) as and when FRSA
Dr Hannah
required
Barham-Brown Merlyn Lowther
FRSA (from Sept 2023)
Jackie Driver
OBE (from
February 2024)
**----- End of picture text -----**
## **Audit and Risk Committee**
- Oversight of Risk Assessment, Risk Appetite, Risk Management and Internal Controls
- Reviews the performance of internal and external audits, and recommends the appointment of external and internal auditors to the Board
## **Investment Committee**
- Monitors performance of the investments, recommends investment policies and strategy to the Motability Foundation’s Board of Governors in respect of the Motability Foundation, and to the Corporate Trustee in respect of the Motability Endowment Trust (MET)
- Reviews financial performance
## **Nominations Committee**
## **Grant-Making and Innovation Committee**
- Oversees all of the Motability Foundation’s grant-making and innovation activities
## **Scheme Oversight Committee**
- Ensures that the Motability Foundation effectively oversees the performance and financial position of the Motability Scheme
- Reviews Board structure, size, composition (including skills, knowledge and experience), considers succession planning and makes recommendations on Governor appointments to the Board of Governors
- Recommends the appointment of the Chief Executive and Directors to the Board
## **Remuneration Committee**
- Reviews the remuneration of the Chief Executive and Directors, as well as the employee pay and benefits strategy
**72** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
key staff and our key stakeholders. Throughout the year, Governors receive updates on information relevant to their role. Additional and ongoing training is arranged as required for individuals or for the Board as a whole.
The Board normally meets formally in person four times a year, with virtual workshops twice annually to enable in-depth discussion on important strategic initiatives prior to decisions. Where necessary, decisions and actions may also be agreed by email between meetings.
The Board delegates specific responsibilities to its committees, each of which has detailed terms of reference and reports to the Board. The remit of the committees is reviewed regularly and updated as necessary to ensure they continue to work effectively. Conflicts of interest are considered at each meeting and the Company Secretary maintains a register of conflicts.
Committees meet prior to Board meetings and formally report to them so that where authority has not been formally delegated, recommendations for changes in strategy or policy can be authorised by the full Board.
Governors are unpaid. They are reimbursed their expenses, and up to three Governors may be reimbursed for lost earnings in order to encourage applications from individuals with a breadth of lived experience, including of disability. Details are set out in Note 8B to the financial statements. Related parties are identified when
new transactions arise and are set out in Note 8B to the financial statements.
The Foundation has one wholly owned subsidiary, Motability Enterprises Limited, about which further details are given in Note 2 to the financial statements, and the Foundation is the sole corporate Trustee of the Motability Endowment Trust.
Day-to-day responsibility for running the foundation during the year is delegated to the Chief Executive (CEO). The CEO also leads the Charity’s relationships with stakeholders, including government, Motability Operations and the Regulators. Supported by a senior management team, he ensures implementation of policies agreed and decisions made by the Governors. Barry Le Grys MBE, the Chief Executive during the financial year 2023/24, retired on 31 March 2024 and has been replaced by Nigel Fletcher.
## **Governance Review**
The Motability Foundation’s activities continue to grow and evolve. The Board has adopted the principles of good governance in the Charities Governance Code. The Board of Governors’ practice and the Foundation’s governance framework are reviewed regularly against this code to identify any improvements to the Board’s governance arrangements, ways of working or any training needs. This includes selfassessments by Board Committees and skills audits of the Board.
Fidelio Partners undertook a
follow-up review to assess progress made since their 2021 governance review. Their recommendations have been implemented. The Investment Committee (IC) and Grant-Making and Innovation Committee (GMIC) completed self-assessment exercises. Work also continued to address areas for improvement following a review of Grant-Making by Farrer and Co, who also completed an evaluation of Scheme Oversight. Governors are tracking the progress of the recommendations made.
## **Companies Act 2006**
We consider it good practice to include a statement in the Strategic Report which demonstrates how the Governors have complied with their duty to have regard to the matters in Section 172 (1) (a)-(f) of the Companies Act 2006. We recognise the importance of demonstrating that we act fairly as between members of the company. To ensure responsible decisions are made, we engage effectively with our wide variety of stakeholders on whom the future success of the Motability Foundation depends. This helps us ensure that decisions are sustainable in the long term and do not disproportionately affect any single stakeholder group. The Board notes the key decisions and considerations made during the year to March 2024, and our relationships with key stakeholders, in the tables on the following pages.
www.motabilityfoundation.org.uk **73**
Annual Report and Accounts 2023/24
## **Significant Decisions**
**----- Start of picture text -----**
SIGNIFICANT DECISION SECTION 172 MATTER AFFECTED ACTION
Allocated a further £50m for Grants Relationship with beneficiaries, suppliers, The Foundation continues to support other
to Charities and Organisations other charities and not-for-profit charities and not-for-profit organisations,
over a further three years (2025/26 organisations and is again aiming to achieve the highest
to 2027/28) level of ambition set out in its current strategy,
including an expenditure of £50m over three
years to deliver impact upon the transport
needs of disabled people in concert with
other organisations
Increased and highest budget Relationship with beneficiaries, suppliers, The Foundation is again aiming to achieve
envelope to date of £130m-£140m other charities and not-for-profit the highest level of ambition set out in its
charitable expenditure in 2024/25 organisations current strategy through the provision of
grants and undertaking research, and by
participating in innovation projects
New innovation priority areas The Motability Foundation would like to We will seek solutions to improve existing
be able to respond quickly to opportunities transport in the areas of greatest opportunity
and potential partnerships that arise and ensure accessibility is a key part of future
and engage with these organisations transport modes and technology
to bring about change for disabled people
in the transport sector
Revised vehicle eligibility criteria Choice, value and sustainability for An inflationary increase to on-the-road value
for the Motability Scheme customers are the key tenets of the Scheme parameters for ICE and EV vehicles for
Motability Scheme. The new criteria will 2023/24
enable Motability Operations to pursue
these in a challenging and changing market
Broaden the range of options We wish to offer a range of mobility Seek to broaden the product range offered on
offered on the Motability Scheme solutions that meets customer needs and the Powered Wheelchair and Scooter Scheme
demonstrates benefit to disabled people
To refresh the Motability Scheme Relationship with Motability Operations Working with Motability Operations, we have
brand architecture and visual and their delivery of the Motability Scheme; developed a Scheme brand and logo which we
identity to become a customer- the major way the Motability Foundation believe is both representative of all disabilities
facing brand known as ‘Motability assists disabled people with mobility is and accessible
Scheme’ by contracting and overseeing Motability
Operations to deliver the Scheme. We
wish to offer a range of mobility solutions
that meet customer needs
Transitional Support Programme The DWP and benefit recipients eligible The Motability Foundation will continue the
for the Scheme DLA to PIP Transition Support Programme in
2024/25 while DWP reassessments continue
To implement arrangements to Disabled people and EV infrastructure Two EV charging assessment schemes have
endorse schemes that assess charging interests been approved
conformity with the public EV
charging standard, PAS 1899
Purchase of Warwick House on Securing our operating base for the benefit Having taken professional advice and gained
Roydon Road and Stadium Way of employees and in support of our intent agreement of Governors in principal in March
in Harlow to ensure a positive impact on the local 2023, the purchase completed in June 2023
environment and community
**----- End of picture text -----**
**74** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## **Key Stakeholders**
**----- Start of picture text -----**
Key stakeholder and why they How we engage Find key highlights of
are important to our success 2023/24 and further
information in this report
UK and Scottish Governments We have formal quarterly meetings at Director Motability Scheme from
The Motability Foundation assists level for all parties and routine engagement p14-19
disabled people with mobility by below this level. Memorandums of Understanding
contracting and overseeing Motability and Agreements are reviewed regularly for
Operations to deliver the Motability operational purposes
Scheme. The Scheme depends on the
transfer of government benefits and
VAT status which are under the authority
of the UK and Scottish Governments
Motability Operations A performance framework is in place, comprised of Motability Scheme from
The Motability Foundation assists monthly reporting against KPIs, quarterly Scheme p14-19
disabled people with mobility by Oversight Committee meetings, analysis of customer
contracting and overseeing Motability research and surveys
Operations to deliver the Motability
Motability Operations Directors consult the Motability
Scheme
Foundation Board quarterly
The Motability Foundation attends specific Motability
Operations governance committees
Senior management of the Motability Foundation and
Motability Operations are routinely in dialogue
Beneficiaries and The Motability Foundation continually surveys Grant-Making from p20-31
Potential Beneficiaries the beneficiary experience of our grant-making Innovation from p38-43
As a charity, the Motability Foundation Our Innovation Team conducts extensive research
must always act within its charitable
and consultation with disabled people and disability
object in the best interests of its
organisations, as well as our own frontline employees,
beneficiaries, who are all disabled
to better understand what mobility problems disabled
people in need of assistance with
people are facing and what solutions would assist them
their personal transportation
Vehicle Adaptation Manufacturers The Motability Foundation provides regular Grant-Making from p20-31
Our Motability Scheme-related grants briefings to manufacturers and works closely
are dependent on their products with the adaptations department of Motability
Operations on delivery matters
Access to Mobility and Other The Motability Foundation has contractual Grant-Making from p20-31
Not-For-Profit Organisations arrangements and grant agreements with other
Working with others increases the parties to deliver services for beneficiaries; each
range and reach of support to disabled includes a performance framework enabling
beneficiaries evaluation and learning for developing assistance
to meet beneficiary needs
National Centre for ncat is governed by a grant agreement between Innovation from p38-43
Accessible Transport (ncat) the Motability Foundation and Coventry University;
Works with disabled people to influence the lead partner
the transport sector and shape future
The Independent Chair reports to the Motability
travel systems for disabled people
Foundation Grant-Making and Innovation Committee
The Motability Foundation Grant-Making and
Innovation Committee oversees reporting of
ncat activities and outputs
**----- End of picture text -----**
**Continued over the page**
www.motabilityfoundation.org.uk **75**
Annual Report and Accounts 2023/24
## **CONTINUED Key Stakeholders**
**----- Start of picture text -----**
Key stakeholder and why they How we engage Find key highlights of
are important to our success 2023/24 and further
information in this report
Employees The Motability Foundation conducts employee Our People from p45-47
The Motability Foundation has two surveys and maintains several internal media
key resources: its people and its funds. channels for employees. Health and wellbeing,
The skills and endeavours of employees skills development and blended working programmes
are vital to our achievements are in place
Regulators The Motability Foundation seeks to ensure full Control and Assurance
The Motability Foundation is regulated compliance with laws and regulations, and is from p51-52
by the Charity Commission, the Office compliant with all reporting requirements
of the Scottish Charity Regulator, the
Financial Conduct Authority and the
Information Commissioner’s Office.
Strong relationships with regulators
inform compliance arrangements
and best practice, and demonstrate
positive intent
**----- End of picture text -----**
## **Statement of Trustees Responsibilities and Corporate Governance**
The Governors, as Trustees, are responsible for preparing the Governors’ Report and the financial statements in accordance with applicable law and United Kingdom accounting standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102, the reporting standard applicable in the UK and the Republic of Ireland, Charities Act 2011, Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006.
The law applicable to charities in England and Wales requires financial statements for each financial year to be prepared by the Governors. These should be a true and fair view of the
state of affairs of the Foundation and the Group, and of the income and application of resources of the Foundation for that period in preparing these financial statements. The Governors are required to:
- Select, then apply, consistently suitable accounting policies
- Observe the methods and principles in the Charities SORP
- – Make judgements and estimates that are reasonable and prudent
- State whether applicable accounting standards have been followed subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume the Foundation will continue in operation
The Governors are responsible for keeping proper accounting records that disclose, with reasonable accuracy and at any time, the financial position of the Group and enable them to ensure that the financial statements comply with the Charities Act 2011, Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the Group and Foundation, and for taking reasonable steps for the prevention and detection of fraud and other irregularities. Insofar as the Governors are aware:
- There is no relevant information of which the Group’s auditors are unaware, and
- They have taken all steps that they
**76** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## **Summary of Climate-Related Disclosures**
UK companies are required to provide disclosures in line with the Task Force on Climate-Related Disclosures (TCFD) recommendations. While not mandatory for the Motability Foundation, this is considered best practice and the Motability Foundation continues to develop its disclosures; the following information is provided elsewhere in this report.
**----- Start of picture text -----**
RECOMMENDATIONS AND SUPPORTING DISCLOSURES
GOVERNANCE STRATEGY RISK MANAGEMENT METRIC AND TARGETS
Disclose the Disclose the actual and Disclose how the Disclose the metrics and
organisation’s potential impacts of organisation identifies, targets used to assess
governance around climate-related risk and assesses and manages and manage relevant
climate-related risks opportunities on the climate-related risks climate-related risks and
and opportunities organisation’s businesses, opportunities where such
strategy and financial information is material
planning where such
information is material
DISCLOSURE REFERENCES
Control and Assurance Five Strategic Pillars p6-7 Risk Management Governors’ Report p71-77
p51-52 The Scheme: Transition to (Principal Risks Disability Charity Pillar –
EVS and Aims for 2023/24 and Mitigations) - Aims for 2023/24 and
and 2024/25 p17-19 Environment Risk p54 Aims for 2024/25 p45 and p53
Build Awareness and Disability Charity
Engagement – Promoting Pillar – Estates Plan and
our Research and Environment p47-51
Innovation: Accessible
EV Charging p34
(Section on) Significant
Decisions p74
MET Governance and
Management p67-68
**----- End of picture text -----**
ought to have taken as Governors to make themselves aware of any relevant information and to establish that the Group’s auditors are aware of that information
These financial statements are published on the Charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Charity’s website is the responsibility of the Trustees. The
Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.
knowingly work with any business or organisation which is involved in modern slavery.
## **Slavery and Human Trafficking Statement**
**Slavery and Human By Order of the Board Trafficking Statement Charles Manby MBE** The Modern Slavery Act 2015 **Chair** introduced obligations in relation to **22 July 2024** slavery and human trafficking. Our purpose is to build a future where all disabled people have the transport options to make the journeys they choose. The Motability Foundation is fully supportive of the legislation as it is in keeping with our principles and aspirations. We will not
www.motabilityfoundation.org.uk **77**
Annual Report and Accounts 2023/24
Independent Auditor’s Report to the Governors (Trustees) of Motability for the year ended 31 March 2024
Annual Report and Accounts 2022/23
**74** www.motability.org.uk
## Independent Auditor’s Report to the Governors (Trustees) of Motability
## **Opinion on the Financial Statements**
In our opinion, the financial statements:
- Give a true and fair view of the state of the Group’s and of the Parent Charity’s affairs as at 31 March 2024 and of the Group’s incoming resources and application of resources 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, Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006, as amended
We have audited the financial statements of Motability (“the Parent Charity”) and its subsidiaries (“the Group”) for the year ended 31 March 2024 which comprise the consolidated statement of financial activities, statement of financial activities (Charity only), the balance sheets, the consolidated cash flow statement 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).
## **Basis for Opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Independence**
We remain independent of the Group and the Parent Charity in accordance with the ethical requirements 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.
## **Conclusions Related 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 Group and the Parent Charity’s ability to continue as a going concern for a period of at least 12 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 Annual Report and Accounts, other than the financial statements and our Auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial
www.motabilityfoundation.org.uk **79**
Annual Report and Accounts 2023/24
## Independent Auditor’s Report to the Governors (Trustees) of Motability
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.
## **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 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion;
- The information given in the Trustees’ Report for the financial year for which the financial statements are prepared is inconsistent in any material respect with the financial statements; or
- Adequate and proper accounting records have not been kept by the Parent Charity; or
- The Parent 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**
As explained more fully in the Statement of Trustees Responsibilities and Corporate Governance, 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 Group’s and the Parent 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 Group or the Parent Charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s Responsibilities for the Audit of the Financial Statements**
We have been appointed as auditor under section 151 of the Charities Act 2011 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, and report in accordance with the Acts and relevant regulations made or having effect thereunder. Our objectives are to obtain
reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
## **Extent to which the Audit was Capable of Detecting Irregularities, Including Fraud**
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:
**80** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## **Non-Compliance with Laws and Regulations**
Based on our understanding of the Group and the sector in which it operates, discussion with management and those charged with governance and the Audit and Risk Committee, obtaining and understanding of the Group’s policies and procedures regarding compliance with laws and regulations, we considered the significant laws and regulations to be the applicable accounting framework, UK tax legislation and employment law.
The Group is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the health and safety legislation, Charities Act 2011, data protection and Financial Conduct Authority regulation.
Our procedures in respect of the above included:
- Review of minutes of meeting of those charged with governance for any instances of non-compliance with laws and regulations
- Review of correspondence with regulatory and tax authorities for any instances of non-compliance with laws and regulations
- – Review of financial statement
- disclosures and agreeing to supporting documentation
- Review of legal expenditure accounts to understand the nature of expenditure incurred; and
- Inquiry and confirmation of no Serious Incident Reports made by the entity
## **Fraud**
We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:
- Enquiry with management and those charged with governance, Audit and Risk Committee and internal audit regarding any known or suspected instances of fraud
- Obtaining an understanding of the Group’s policies and procedures relating to:
- Detecting and responding to the risks of fraud; and
- Internal controls established to mitigate risks related to fraud
- Review of minutes of meeting of those charged with governance for any known or suspected instances of fraud
- Discussion amongst the engagement team as to how and where fraud might occur in the financial statements
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud
- Review of correspondence with the Financial Conduct Authority; and
- Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of controls, significant accounting estimates and income recognition
Our procedures in respect of the above included:
- Testing a sample of journal entries throughout the year, which met a defined risk criteria, by agreeing to supporting documentation
- Involvement of forensic specialists in the audit to consider potential instances of fraud
- Assessing significant estimates made by management for bias, including valuation of investments and valuation of the PIP provision by consideration of the basis of estimation and inputs to the calculations
- Testing a sample of income recognised during the year to ensure recognition is in line with FRS 102 and the Charity SORP
- Enquiries of third parties where information had been used by the group in preparation of the financial statements, particularly including investment manager and custodian confirmations of year-end valuations and investment holdings; and
- Audit testing a sample of payments, grants awards and commitments ensuring these have been made in
www.motabilityfoundation.org.uk **81**
Annual Report and Accounts 2023/24
Independent Auditor’s Report to the Governors (Trustees) of Motability
accordance with authority limits, award letters and internal control procedures
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc. org.uk/auditorsresponsibilities. This description forms part of our Auditor’s report.
## **Use of our Report**
This report is made solely to the Charity’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and the Charities and Trustee Investment (Scotland) Act 2005. 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 and the Charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.
**BDO LLP, statutory auditor** London, UK Date: 23 July 2024
BDO LLP is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
**82** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## Financial Statements for the year ended 31 March 2024
Annual Report and Accounts 2022/23
## Consolidated Statement of Financial Activities
for the year ended 31 March 2024
||Unrestricted Restricted Endowment
Group Unrestricted
Restricted Endowment
Group
Funds
Funds
Fund
Funds
Funds
Funds
Fund
Funds
2024
2024
2024
2024
2023
2023
2023
2023
Note
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
**Income and Endowments from:**
Voluntary Fundraising Income
150
-
-
150
260
-
-
260
Motability Operations Donations
-
-
250,000
250,000
200,000
-
- 200,000
**Donations and Legacies**
**150**
**-**
**250,000**
**250,150**
**200,260**
**-**
**- 200,260**
Other Trading Activities
2
916
-
-
916
723
-
-
723
Income from Investments
3
30,437
1,620
27,372
59,429
19,295
443
19,668
39,406
Other Income
4
446
-
-
446
4
-
-
4
**Total Income and Endowments**
**31,949**
**1,620**
**277,372**
**310,941**
**220,282**
**443**
**19,668**
**240,393**
**Expenditure on:**
Raising Funds
6
3,557
79
16,020
19,656
3,609
64
12,089
15,762
Charitable Activities:
Grants to Individuals
96,211
(135)
-
96,076
92,254
197
-
92,451
Grants to Organisations
23,072
-
-
23,072
17,193
-
-
17,193
Build Awareness
2,452
-
-
2,452
1,889
-
-
1,889
Innovation
1,507
-
-
1,507
1,424
-
-
1,424
Motability Scheme
451
-
-
451
303
-
-
303
**Total Charitable Expenditure**
**5**
**123,693**
**(135)**
**-**
**123,558**
**113,063**
**197**
**-**
**113,260**
**Total Expenditure**
**127,250**
**(56)**
**16,020**
**143,214**
**116,672**
**261**
**12,089**
**129,022**
~~**Net Income Before**~~
~~**Gains / (Losses) on Investments**~~
~~**(95,301)**~~
~~**1,676**~~
~~**261,352**~~
~~**167,727**~~
~~**103,610**~~
~~**182**~~
~~**7,579**~~
~~**111,371**~~
Net Gains / (Losses) on Investments
11
10,931
641
218,432
230,004
(8,145)
1,072
(18,198)
(25,271)
~~**Net Income / (Expenditure)**~~
~~**(84,370)**~~
~~**2,317**~~
~~**479,784**~~
~~**397,731**~~
~~**95,465**~~
~~**1,254**~~
~~**(10,619)**~~
~~**86,100**~~
**Other Realised Gains and Losses**
Actuarial (Loss) / Gain on
Defned Pension Scheme
22
(266)
-
-
(266)
479
-
1
480
~~**Net Movement in Funds**~~
~~**(84,636)**~~
~~**2,317**~~
~~**479,784**~~
~~**397,465**~~
~~**95,944**~~
~~**1,254**~~
~~**(10,618)**~~
~~**86,580**~~
Fund Balances at 1 April
514,326
43,742
1,224,402
1,782,470
418,382
42,488
1,235,020
1,695,890
~~**Fund Balances at 31 March**~~
~~**18, 19, 20**~~
~~**429,690**~~
~~**46,059**~~
~~**1,704,186 2,179,935**~~
~~**514,326**~~
~~**43,742**~~
~~**1,224,402**~~
~~**1,782,470**~~|
|---|---|
||**Income and Endowments from:**
Voluntary Fundraising Income
Motability Operations Donations
**Donations and Legacies**
Other Trading Activities
2
Income from Investments
3
Other Income
4
**Total Income and Endowments**
**Expenditure on:**
Raising Funds
6
Charitable Activities:
Grants to Individuals
Grants to Organisations
Build Awareness
Innovation
Motability Scheme
**Total Charitable Expenditure**
**5**
**Total Expenditure**
~~**Nt I Bf**~~|
||~~**e ncome eore**~~
~~**Gi / L Itt**~~|
||~~**ans (osses) on nvesmens**~~
Net Gains / (Losses) on Investments
11
~~**Nt I / Edit**~~|
||~~**e ncome (xpenure)**~~
**Other Realised Gains and Losses**
Actuarial (Loss) / Gain on
Defned Pension Scheme
22
~~**Nt Mt i Fd**~~|
||~~**e ovemen n uns**~~
Fund Balances at 1 April
~~**Fund Balances at 31 March**~~
~~**18 19 20**~~|
||
~~**, ,**~~|
There were no other recognised gains or losses other than those listed above and the net income for the year. The Notes on p88-131 form an integral part of the financial statements. All the Group’s financial activities in this and the prior year were continuing. The Endowment Fund column represents the financial activities of the Motability Endowment Trust.
**84** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## Statement of Financial Activities (Charity Only)
for the year ended 31 March 2024
||Unrestricted Restricted Endowment
Charity Unrestricted Restricted Endowment
Charity
Funds
Funds
Fund
Funds
Funds
Funds
Fund
Funds
2024
2024
2024
2024
2023
2023
2023
2023
Note
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
**Income and Endowments from:**
Voluntary Fundraising Income
492
-
-
492
375
-
-
375
Motability Operations Donations
-
-
250,000
250,000
200,000
-
-
200,000
**Donations and Legacies**
**492**
**-**
**250,000**
**250,492**
**200,375**
**-**
**-**
**200,375**
Income from Investments
30,429
1,620
27,372
59,421
19,292
443
19,668
39,403
Other Income
456
-
-
456
14
-
-
14
**Total Income and Endowments**
**31,377**
**1,620**
**277,372**
**310,369**
**219,681**
**443**
**19,668**
**239,792**
**Expenditure on:**
Raising Funds
1,993
79
16,020
18,092
1,871
64
12,089
14,024
Charitable Activities:
Grants to Individuals
96,211
(135)
-
96,076
92,254
197
-
92,451
Grants to Organisations
23,072
-
-
23,072
17,193
-
-
17,193
Build Awareness
3,445
-
-
3,445
3,026
-
-
3,026
Innovation
1,507
-
-
1,507
1,424
-
-
1,424
Motability Scheme
451
-
-
451
303
-
-
303
**Total Charitable Expenditure**
**124,686**
**(135)**
**-**
**124,551**
**114,200**
**197**
**-**
**114,397**
**Total Expenditure**
**126,679**
**(56)**
**16,020**
**142,643**
**116,071**
**261**
**12,089**
**128,421**
~~**Net Income Before**~~
~~**Gains / (Losses) on Investments**~~
~~**(95,302)**~~
~~**1,676**~~
~~**261,352**~~
~~**167,726**~~
~~**103,610**~~
~~**182**~~
~~**7,579**~~
~~**111,371**~~
Net Gains / (Losses) on Investments
11
10,931
641
218,432
230,004
(8,145)
1,072
(18,198)
(25,271)
~~**Net Income / (Expenditure)**~~
~~**(84,371)**~~
~~**2,317**~~
~~**479,784**~~
~~**397,730**~~
~~**95,465**~~
~~**1,254**~~
~~**(10,619)**~~
~~**86,100**~~
**Other Realised Gains and Losses**
Actuarial (Loss) / Gain
on Defned Pension Scheme
22
(266)
-
-
(266)
479
-
1
480
~~**Net Movement in Funds**~~
~~**(84,637)**~~
~~**2,317**~~
~~**479,784**~~
~~**397,464**~~
~~**95,944**~~
~~**1,254**~~
~~**(10,618)**~~
~~**86,580**~~
Fund Balances at 1 April
514,311
43,742
1,224,402
1,782,455
418,367
42,488
1,235,020
1,695,875
~~**Fund Balances at 31 March**~~
~~**18, 19,20**~~
~~**429,674**~~
~~**46,059**~~
~~**1,704,186**~~
~~**2,179,919**~~
~~**514,311**~~
~~**43,742**~~
~~**1,224,402**~~
~~**1,782,455**~~|
|---|---|
||~~**u**~~
~~**, ,**~~|
There were no other recognised gains or losses other than those listed above and the net income for the year. The Notes on p88-131 form an integral part of the financial statements.
All the Charity’s financial activities in this and the prior year were continuing. The Endowment Fund column represents the financial activities of the Motability Endowment Trust.
www.motabilityfoundation.org.uk **85**
Annual Report and Accounts 2023/24
## Balance Sheet (Group and Charity) as at 31 March 2024
||Group
Group
Charity
Charity
2024
2023
2024
2023
Note
£’000
£’000
£’000
£’000
Intangible Fixed Assets
10
1,271
906
1,271
906
Tangible Fixed Assets
10
6,127
1,178
6,127
1,178
Fixed Asset Investments
11, 12
2,110,054
1,726,040
2,110,054
1,726,040
~~**Fixed Assets**~~
~~**2,117,452**~~
~~**1,728,124**~~
~~**2,117,452**~~
~~**1,728,124**~~
Debtors
13
7,868
6,224
8,092
6,029
Current Asset Investments
11, 12
119,527
105,491
119,527
105,491
Cash at Bank and in Hand
33,633
30,434
33,344
30,302
~~**Current Assets**~~
~~**161,028**~~
~~**142,149**~~
~~**160,963**~~
~~**141,822**~~
Creditors: Amounts Falling Due within One Year
14
(96,622)
(85,976)
(96,573)
(85,664)
~~**Net Current Assets**~~
~~**64,406**~~
~~**56,173**~~
~~**64,390**~~
~~**56,158**~~
~~**Total Assets Less Current Liabilities**~~
~~**2,181,858**~~
~~**1,784,297**~~
~~**2,181,842**~~
~~**1,784,282**~~
Creditors: Amounts Falling Due after One Year
-
(10)
-
(10)
Provisions
15
(776)
(1,080)
(776)
(1,080)
~~**Net Assets (excluding Pension Liability)**~~
~~**2,181,082**~~
~~**1,783,207**~~
~~**2,181,066**~~
~~**1,783,192**~~
Defned Beneft Pension Scheme Liability
22
(1,147)
(737)
(1,147)
(737)
~~**Net Assets**~~
~~**2,179,935**~~
~~**1,782,470**~~
~~**2,179,919**~~
~~**1,782,455**~~
Endowment Funds
20
1,704,186
1,224,402
1,704,186
1,224,402
Restricted Income Funds
19
46,059
43,742
46,059
43,742
General Unrestricted Funds
18
429,690
514,326
429,674
514,311
~~**Total Funds**~~
~~**2,179,935**~~
~~**1,782,470**~~
~~**2,179,919**~~
~~**1,782,455**~~|
|---|---|
The Notes on p88-131 form an integral part of the financial statements.
The financial statements on p84-87 were approved and authorised for issue by the Board of Governors on 22 July 2024, and were signed on its behalf by:
Charles Manby MBE, Chair
David Hunter FCA, Hon. Treasurer
The Endowment Funds balance refers to the Motability Endowment Trust.
**86** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## Consolidated Cash Flow Statement
for the year ended 31 March 2024
|||Notes|Group 2024|Group 2023||
|---|---|---|---|---|---|
||||£’000|£’000||
|~~**Net Income for the Year (as per the Statement of Financial Activities)**~~|||~~**397,731**~~|~~**86,100**~~||
|**Adjustments for Non Cash Items**||||||
|(Increase) in Debtors||13|(1,644)|(2,680)||
|Increase in Creditors||14|10,646|34,182||
|(Decrease) in Creditors > 1yr|||(10)|(20)||
|(Decrease) / Increase in Provisions||15|(304)|8||
|Reinvested Investment Income||11|(30,682)|(23,021)||
|Investment Management Fees Charged to Capital||11|13,930|13,022||
|Amortisation||10|291|313||
|Depreciation||10|1,031|1,564||
|Impairment||10|610|-||
|Loss on Disposal of Intangible Fixed Assets||10|-|
163||
|(Gain) on Disposal of Tangible Fixed Assets||10|(10)|(4)||
|FRS 102 Pension Adjustment||22|144|84||
|Investment (Gains) / Losses in the Year||11|(230,004)|25,238||
|**Adjustments to exclude Investment Activities**||||||
|Investment Income Received|||(27,109)|(13,291)||
|Interest Income Received|||(732)|(668)||
|Investment Management Fees Paid|||1,187|316||
|**Adjustments to exclude Financing Activities**||||||
|Receipt of Endowment|||(250,000)|-||
|~~**Net Cash Flows from Operating Activities**~~|||~~**(114,925)**~~|~~**121,306**~~||
|**Cash Flows from Investing Activities:**||||||
|Investment Income|||27,109|13,291||
|Interest Income|||732|668||
|Investment Management Fees Paid|||(1,187)|(316)||
|Purchases of Intangible Fixed Assets||10|(656)|(235)||
|Purchases of Tangible Fixed Assets||10|(6,589)|(370)||
|Proceeds from Sales of Fixed Assets||4|10|4||
|Purchases of Fixed Assets Investments|||(594,723)|(672,638)||
|Proceeds from Sales of Fixed Assets Investments|||378,536|578,193||
|Purchases of Current Assets Investments|||(112,419)|(184,839)||
|Proceeds from Sales of Current Assets Investments|||176,389|138,081||
|Increase / (Decrease) in Investment Cash||11|922|(965)||
|~~**Net Cash Flows used in Investing Activities**~~|||~~**(131,876)**~~|~~**(129,126)**~~||
|**Cash Flows from Financing Activities:**||||||
|Receipt of Endowment|||250,000|-||
|~~**Net Cash Flows provided by Financing Activities**~~|||~~**250,000**~~|~~**-**~~||
|Change in Cash and Cash Equivalents for the Year
Cash and Cash Equivalents Brought Forward
~~**Cash and Cash Equivalents**~~
**Consolidated Analysis of Changes in Net Debt**
**Group**
Cash at Bank and in Hand
Debts Due within One Year
Debts Due after One Year
~~**Total Net Debt**~~|
**1 April 23**
**£’000**
30,434
-
-
~~**30,434**~~|**Cash**
**Flows**
**£’000**
3,199
-
-
~~**3,199**~~|3,199
30,434
~~**33,633**~~
**Fair Value**
**Movements**
**£’000**
-
-
-
~~**-**~~|(7,820)
38,254
~~**30,434**~~
**Other Non-Cash**
**Movements**
**£’000**
-
-
-
~~**-**~~|**31 March 24**
**£’000**
33,633
-
-
~~**33,633**~~|
|||||||
The Notes on p88-131 form an integral part of the financial statements.
www.motabilityfoundation.org.uk **87**
## Notes to the Financial Statements
## **1. Accounting Policies**
**A. Corporate and Charitable Status** Motability, operating as the Motability Foundation, is a public benefit entity incorporated by Royal Charter and registered with the Charity Commission, Charity no. 299745, in England and Wales. Scotland OSCR Registration SC050642.
## **B. Basis of Preparation and Consolidation**
Group financial statements have been prepared in respect of the Motability Foundation and its wholly owned subsidiary, Motability Enterprises Limited.
The financial statements have been prepared in accordance with the accounting policies set out in Notes to the Accounts and comply with the Charity’s governing document, applicable UK accounting standards (UK Generally Accepted Accounting Practice), including Financial Reporting Standard 102, the Charities Act 2011, and Accounting and Reporting by Charities: Statement of Recommended Practice, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland, updated in 2019.
The Motability Foundation is the sole corporate Trustee of the Motability Endowment Trust (MET), a linked charity which shares the Motability Foundation’s registered charity number (with the suffix ‘-1’) and has the same charitable objects.
The assets and liabilities of MET have been included with those of the Charity on a line-by-line basis and included in the column ‘Endowment’ where appropriate. This fulfils the requirement to show the accounts of a linked charity as the Motability Foundation’s only Endowment assets, liabilities and activities are those of MET. MET supports the Motability Foundation’s charitable purposes through the returns MET earns on its assets. The principal activity during the year was investing in appropriate and diversified assets so as to obtain a long-term return of CPI +4%.
Motability Enterprises Limited (MEL) is incorporated in the United Kingdom and registered in England and Wales. MEL’s financial statements have been consolidated with those of the Charity on a lineby-line basis. The principal activities of Motability Enterprises Limited during the year were the raising of funds for the Charity by commission received from home and travel
insurance partners, and from the publication of Lifestyle magazine.
The Motability Foundation, as the Parent Charity, has taken the qualifying entity exemption under FRS 102 from preparing its own cash flow statement. The most significant areas of judgement and estimation in applying these accounting policies to the financial statements are deemed to be in relation to the valuation of non-listed investments as set out below in Note Q.
The financial statements have been prepared in pounds sterling, which is the functional currency of the Motability Foundation and its subsidiary. Monetary amounts in these financial statements are rounded to the nearest £’000.
## **C. Going Concern**
In the current cost-of-living crisis, grant demand is at record levels while there remains a global supply shortage of vehicles. Whilst both these factors are easing, there remain ongoing delays in grants being claimed by beneficiaries. Contact with beneficiaries continues to confirm that grants will be claimed when a suitable vehicle is available. Therefore, grant commitments made in the year and outstanding as at 31 March 2024 are stated at full value.
**88** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
As noted in the financial review section of the Annual Report for the year ended 31 March 2024, the Motability Foundation has reviewed its future spending plans in five-year scenarios to allow for differing levels of future donations from Motability Operations and income generated by MET’s Endowment and differing spend rates.
The General Fund held cash, money market fund balances, deposits and investment grade bonds maturing within one year totalling £145m (2023: £127m). Further investments, including money market funds and relatively liquid investments such as listed equities, are held within the restricted and expendable Endowment funds. The Motability Foundation will seek to maintain core spending on beneficiaries and will curtail discretionary grant programmes where necessary to achieve this end.
The Motability Foundation’s future financial plans, budgets, reserves levels and cash flow forecasts for a period of more than 12 months from the date of the signature of the accounts have been prepared by management and reviewed by the Governors.
On this basis, the Governors believe that the going concern assumption
continues to be an appropriate basis on which to prepare these statements. The Endowment of MET is expendable, although the current policy of the Trustee is, where possible, to invest the assets of MET to retain the real value of the Endowment while also generating sufficient return so as to enhance the stability and scale of grant-making and other charitable activities as may be determined from time to time by the Trustee. The Motability Foundation’s and MET’s investments are stated at fair value at 31 March 2024.
There are no material uncertainties related to events or conditions that cast significant doubt upon the entity’s ability to continue as a going concern.
## **D. Income**
Income is accounted for when the Charity is entitled to the income, and when it is probable the income will be received and the amount can be measured reliably.
- Donations are recognised as and when they are received
- Legacies are recognised when the Charity is entitled to the income (at probate), the amount can be quantified with reasonable certainty and when it is probable the income will be received
- Gift aid income is recognised on an accruals basis when the receipt and value are both certain
- Other income is recognised in the period it is receivable and to the extent the services have been provided
- Interest is recognised when receivable and the amount can be measured reliably by the Charity. This is normally upon notification of the interest paid or payable by the bank
- Dividends are recognised once the dividend has been declared and notification has been received of the dividend due
- Income within accumulating listed investment portfolios is deducted from gains on investment and shown as investment income
- Income received as Agent: the Motability Foundation administers grants for disabled people on behalf of Veterans UK. However, in this respect, the Motability Foundation is acting as a conduit and, as a result, does not treat these grants as income – please see Note 21 for further details.
## **E. Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
www.motabilityfoundation.org.uk **89**
Annual Report and Accounts 2023/24
## Notes to the Financial Statements cont.
Expenditure is classified under the following activity headings:
- ‘Raising Funds’ comprises costs directly attributable to activities for raising funds such as the administration of affinity insurance products, the production of Lifestyle magazine and the cost of investment management
- ‘Charitable Expenditure’ includes direct charitable expenditure, grants and directly attributable costs including central overheads such as relevant staff costs
- ‘Grants’ are recognised when they have been approved and communicated to the recipient except to the extent that they are subject to conditions that enable the Charity to revoke the award. This may result in a grant being recognised as charitable expenditure over several years
- The movement in the PIP TSP provision is included in Charitable Expenditure and the basis and estimates for the provision, and therefore its movement, are set out in Notes 1K and 1Q
- Stopped Allowances become payable upon the return of Scheme vehicles
- ‘Allocated Support Costs’ are comprised of the running costs of the Charity such as information technology, finance, evaluating charitable activities etc, and are allocated as part of non-directly
- attributable costs described below
- ‘Governance Costs’ include audit fees, legal advice for Governors relating to compliance with constitutional and statutory requirements and are part of the total support costs of the Charity. These are allocated as part of non-directly attributable costs as described below
- ‘Allocated Support Costs’ and ‘Governance Costs’ are allocated on the ratio of the expenditure for the programme as a percentage of the total
Staff costs comprise salaries and social security contributions, contributions to the Charity’s defined contribution scheme and the change to the Statement of Financial Activities (SoFA) in respect of the defined benefits pension scheme. Any annual leave that an employee has accrued but not yet taken as at 31 March is calculated at the prorata cost of these days. The cost is included within the SoFA, with a corresponding liability shown as falling due within one year.
Termination benefits may occur where the Charity has agreed to terminate the employment of an employee and are included within the financial statements when the payment has been formally agreed or a detailed formal plan for the
termination from which the Charity is realistically unable to withdraw exists. The amount of termination benefit shown is either the amount agreed or paid, or the Charity’s best estimate of the expenditure required to settle the obligation.
## **F. Tangible and Intangible Fixed Assets**
Assets are included on the balance sheet at cumulative historical cost less depreciation and any impairments in accordance with FRS 102. The cost of tangible fixed assets is their purchase price including associated costs such as taxes and legal fees, together with any costs directly attributable to bringing the asset into working condition for its intended use; and subsequent dilapidations or decommissioning costs anticipated which are provided for.
Assets in the course of construction are stated at cost and are not depreciated until available for use. Expenditure on fixed assets is capitalised where individual items cost £1,000 or more.
Fixed assets are depreciated or amortised on a straight-line basis over their anticipated useful lives as follows:
- Freehold Land: non-depreciating – Freehold building: Thirty Years
**90** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
- Freehold refurbishment: Five Years
- Leasehold improvements: Depreciated over the shorter of the remaining life of the lease or the life of the improvement
- Office furniture, fixtures and fittings: Five Years
- Computer hardware: Three Years
- Vehicles: Four years
- Computer software: Five Years
- Intellectual Property: Five Years
Capital commitments as at 31 March 2024 are disclosed in Note 23.
## **G. Financial Assets and Liabilities including Investments**
Financial assets and financial liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are measured at their transaction price (transaction costs are included in investment management costs for the year) except for those investments which are held at fair value through the SoFA and financing transactions, which are held at the present value of the future payments discounted at a market rate of interest for a similar debt instrument through the SoFA.
The total investment management costs charged to the Motability Foundation’s investments are recognised in the cost of raising
funds, including charges deducted within portfolios and funds by investment managers. Investment gains and losses are adjusted by the amount of these indirect charges so that asset values are stated accurately for investments. The value of these adjustments is not material to asset values.
The majority of the Charity and Group’s financial assets and financial liabilities are of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value, with the exception of listed investments which are held at fair value through the SoFA.
The Charity and Group also hold a smaller amount of unquoted investments, which are valued at the best estimate of fair value as follows:
- Pooled investments are stated at fair value, the basis of fair value being the market value of the underlying investments held. These valuations are provided by the fund managers and are subject either to independent valuation or annual audit
- Unquoted hedge funds are valued by reference to the market value of their underlying investments. These valuations are provided by the third party hedge fund administrators
- Private assets investments such as private equity are held through funds managed by private equity groups. As there is no identifiable market price for private asset funds, these funds are included at the most recent valuations from the private asset groups where:
- The private asset group provides a fair value that complies with the International Private Equity and Venture Capital Valuation Guidelines; or
- The private asset group valuations are prepared at fair value in accordance with UK GAAP
- Where a valuation is not available at the balance sheet date, the most recent valuation from the private asset group is used, adjusted for cash flows and foreign exchange movements and any impairment between the most recent valuation and the balance sheet date
Financial Assets measured at fair value as at 31 March 2024 are disclosed in Note 12.
Derivative financial instruments. Managers of segregated funds may enter into derivatives as part of their portfolio risk management, fair values of these derivatives are provided by the fund managers.
www.motabilityfoundation.org.uk **91**
Annual Report and Accounts 2023/24
## Notes to the Financial Statements cont.
The Motability Foundation’s fund managers may use forward contracts to manage currency exposures. Where this occurs, the value of the forward contracts are accounted for at the fair values supplied by the fund managers. Investment in the subsidiary Motability Enterprise Limited is unquoted and held at cost less impairment.
Net realised and unrealised gains and losses on investments are recognised within the SoFA. Gains and losses are realised when an investment is disposed of in the year. Unrealised gains and losses arise on the revaluation of investments to fair value at the balance sheet date.
Transactions denominated in foreign currency are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currency are translated at the exchange rate ruling at the balance sheet date. All gains and losses on exchange, realised and unrealised, are included in the appropriate income or expenditure category in the SoFA.
Investment purchases and proceeds are based on portfolio transactions where the Motability Foundation or MET instruct those transactions. Where the manager has discretion
to transact, the additions to or withdrawals from those portfolios are shown as purchases of or proceeds from investments. This policy was revised during the previous financial year to remove sales and purchases for certain discretionary mandate portfolios (and use withdrawals and additions instead).
## **H. Fund Accounting**
Expendable Endowment funds are held and invested to provide a return to support general funds expenditure on the Motability Foundation’s objects. The capital of the Endowment may be spent. Given the importance of the regular returns expected to be received from the Endowment, in order to support grant-making in years of low or no donations from Motability Operations, the Governors aim to preserve the real value of the capital and the return on it over the long term. They have determined that the Endowment’s capital should only be spent in exceptional circumstances such as a ‘once-in-a-lifetime’ opportunity to make a permanent systemic improvement to the transport opportunities for all disabled people.
Restricted funds are funds subject to specific restrictions imposed by the donor. These funds are held by the
Motability Foundation until spent in accordance with the terms of the donation.
Unrestricted funds comprise the accumulated movement on funds available for use at the absolute discretion of the Governors.
Unrestricted funds may be transferred to a restricted fund in order to support that specific activity. Any transfer between funds requires the Approval of the Audit and Risk Committee. Designated funds comprise funds which Governors have set aside for a particular activity or purpose. If funds are unspent at the end of a project or activity they are transferred to unrestricted funds or may be designated for another purpose.
## **I. Pension Costs**
The Charity operates a defined benefit pension scheme for certain employees. The scheme was closed to new members from October 2005. The amounts charged to the SoFA are the costs arising from employee services rendered during the period and the cost of plan introductions, benefit changes, settlements and curtailment. They are included as part of staff costs.
The net interest cost on the defined benefit liability is charged to the
**92** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
SoFA and included within support costs. Re-measurement comprising actuarial gains and losses and the return on scheme assets (excluding amounts included in net interest on the net defined benefit liability) are recognised immediately in the SoFA.
The defined benefit scheme is funded, with the assets of the scheme held separately from those of the Group, in separate Trustee-administered funds. The pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the defined accrued benefits method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent currency and term to the scheme liabilities. Actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The resulting defined benefit asset or liability is presented separately after other net assets on the face of the balance sheet.
The Charity also operates a defined contribution scheme and the amount charged to the Consolidated SoFA in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or
prepayments in the balance sheet.
## **J. Leases**
As there are no finance leases, all leases are classified as operating leases, with the lease payments recognised as an expense over the lease term on a straight-line basis. No leases fall to be capitalised under this policy.
The Motability Foundation lets out part of its owned property as an operating lease. Rental income is recognised on a straight-line basis over the lease term. All direct costs are recognised as expenses over the lease term on the same basis as rental income. The property is accounted for on our balance sheet as a fixed asset and depreciated.
## **K. Accounting for PIP Transitional Grants**
In 2013, the DWP announced that Personal Independence Payment (PIP) would replace Disability Living Allowance (DLA) as a disability benefit as part of the Welfare Reform changes. PIP has different qualification criteria compared with DLA, and it was immediately apparent that large numbers of scheme customers would lose eligibility to the scheme when they failed to transition to the qualifying Higher Rate Mobility Component of PIP.
That year, the Motability Foundation therefore announced that it would provide financial assistance to help customers to sustain their mobility who, due to the transition from DLA to PIP, would no longer qualify for benefits allowing them to lease a vehicle under the Motability Scheme. For affected customers returning their vehicles in an acceptable condition, and within the designated time, the Motability Foundation provides support payments for customers who joined the scheme up until 2013.
In order to ensure the most effective use of the available funds, Governors review all aspects of the support package each December and estimate the likely costs that would arise were notice to be given of termination of the scheme.
Management believe that a reasonable estimate of the constructive economic obligation as at the end of each financial year can be established, and have accounted for this by way of a provision. The resulting provision estimate recognises that there is a 16-month commitment from the balance sheet date for providing the current level of transitional support, i.e. to all qualifying customers who might leave the scheme by 31 July 2025. This date would allow for communication to customers of
www.motabilityfoundation.org.uk **93**
Annual Report and Accounts 2023/24
## Notes to the Financial Statements cont.
any potential changes to the programme in January following the review in the autumn. As at 31 March 2024, the estimated constructive obligation was £0.16m (2022: £0.4m).
The most important estimate is the number and timing of DLA to PIP reassessments carried out by DWP. Given that activity has recently been and is constrained to Rising 16s, Change of Circumstances and voluntary applications for PIP, we have therefore used recent experience as the basis for predicting future expenditure.
In order to fund this Transitional Support, Motability Operations has made restricted purpose donations to the Motability Foundation totalling £175m. As at the end of the financial year £132m has been spent on the programme (2023: £132m). See Note 1Q. The date for the end of the main DLA to PIP programme is difficult to predict as future caseloads are so uncertain. There will, however, be an ongoing commitment to Rising 16s, who transition from DLA to PIP on their sixteenth birthday, until 2026/27, albeit at low expenditure levels. The balance of funds donated by Motability Operations is held as a restricted reserve.
## **L. Debtors**
Trade and other debtors are recognised at the settlement amount. Investment income owed is accrued at its anticipated receipt value. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **M. Current Investments and Cash**
Current Asset Investments are investments that are expected to be wholly or substantially expended within 12 months of the balance sheet date. At 31 March 2024, these were general fund deposits with a maturity of 30 days or more and general fund listed debt securities with a maturity of less than one year.
Cash and cash equivalents are cash at bank and in hand as shown in the balance sheet. Cash held by Fund Managers in discretionary mandates is excluded from cash and included within Fixed Asset Investments.
## **N. 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. Included
in creditors are amounts due for grants programmes that have been settled but remain unpaid.
## **O. Provisions and**
## **Contingent Liabilities**
Provisions are recognised where there is a present obligation as a result of a past event, if it is probable that a transfer of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. As owner of Warwick House, we hold contributions from all occupants of the building towards future major works of the freehold property. A provision in respect of the PIP Transitional Support Programme is set out in Accounting Policy Note K. Where no provision is recognised, contingent liabilities are disclosed in the Notes to the Financial Statements, unless the possibility of a transfer of economic benefits is remote.
## **P. Commitment and**
## **Conditional Grant Awards**
The Motability Foundation’s grants carry conditions to ensure that grants are spent for the specified purpose. Where the conditions are satisfied at the time of award, the full amount of the grant is recognised immediately as charitable expenditure. Where this is not the case, for instance when the grant is comprised of a series of
**94** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
payments with each dependent on the beneficiary meeting conditions, the Motability Foundation recognises the amount of the grant for which the conditions are met in the year as charitable expenditure.
## **Q. Critical Accounting**
## **Judgements and Estimations**
In the application of the accounting policies, which are described within this note, the Governors are required to make judgements and assumptions leading to financial estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The assumptions and associated estimates are based on historical experience and other factors that are considered to be relevant.
Actual results may differ from these estimates.
## **Defined Benefit Pension**
Other than pension obligations, where the actuarial assumptions underlying the pension deficit are set out in Note 22, the Trustees consider the most significant judgements and estimates to be in relation to the valuation of non-listed investments.
## **Non-Listed Investment Valuations**
Non-listed investments are valued at the value supplied by the fund
manager. Where it is not possible to obtain a current fair value, an estimate is made based on the most recent valuation adjusted for subsequent known flows, fund expenses on a contractual basis and exchange rate movements. Where the value is thought to be significantly impaired then the value is stated at the lower of cost or impaired valuation. The basis of impairments for non-listed investments are arrived at from a review of the general performance of the relevant asset class(es) and economy(s), and discussions with the relevant fund manager. There were no impairments in the year.
## **PIP Provision Judgements**
The underlying assumptions and judgements for the PIP provision have been calculated using a model based on actual information for 2023/24. The assumptions relating to the PIP Transitional Support Programme are reviewed on an ongoing basis. There is also a Governor annual review of the whole programme that takes place every autumn.
## **PIP Provision Estimates**
The 16-month provision at the end of 2023/24 reduced to £0.16m (2022/23 £0.4m), which is based on an average monthly spend of £10,000 over a 16-month period. Please see Section
K - Accounting for PIP Transitional Grants for further details.
## **R. Taxation**
The charitable members of the Group are exempt from taxation on their income and gains falling within Part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to their charitable purposes. The non-charitable subsidiary, although subject to taxation, does not pay UK Corporation Tax because its policy is to donate taxable profits as a qualifying distribution under Deed of Covenant to the Motability Foundation. Foreign tax incurred on overseas investments is charged as it is incurred. Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date
www.motabilityfoundation.org.uk **95**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
## 2. Trading Activities of the Subsidiary
The Charity has a wholly owned trading subsidiary, Motability Enterprises Limited, which is incorporated in the UK. Company number 01786053; Registered address Warwick House, Roydon Road, Harlow, Essex, CM19 5PX.
Motability Enterprises Limited made a qualifying distribution of its trading profits to the Motability Foundation as a corporate gift aid payment under Deed of Covenant without deduction of tax.
A summary of its trading results extracted from its full accounts is shown below. The net assets of the subsidiary are £15,000 (2023: £15,000)
||Total
Total
2024
2023
£’000
£’000
**Income and Expenditure Account**
Turnover
1,900
1,859
Less: Cost of Sales and Other Costs
(1,413)
(1,603)
~~**Gross Proft **~~
~~**487**~~
~~**256**~~
Administration Expenses
(152)
(145)
Interest Receivable
7
3
~~**Net Proft **~~
~~**342**~~
~~**114**~~
Qualifying Distribution to the Motability Foundation
(342)
(114)
~~**Retained in Subsidiary**~~
~~**-**~~
~~**-**~~|
|---|---|
**96** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## 3. Income from Investments
||Unrestricted
Restricted Endowment
Total
Unrestricted Restricted Endowment
Total
Funds
Funds
Funds
Funds
Funds
Funds
Funds
Funds
2024
2024
2024
2024
2023
2023
2023
2023
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
Interest Receivable
584
92
114
790
286
35
359
680
Investment Income
29,853
1,528
27,258
58,639
19,009
408
19,309
38,726
~~**Income from Investments**~~
~~**30,437**~~
~~**1,620**~~
~~**27,372**~~
~~**59,429**~~
~~**19,295**~~
~~**443**~~
~~**19,668**~~
~~**39,406**~~|
|---|---|
## 4. Other Income
||Unrestricted
Restricted Endowment
Total
Unrestricted Restricted Endowment
Total
Funds
Funds
Funds
Funds
Funds
Funds
Funds
Funds
2024
2024
2024
2024
2023
2023
2023
2023
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
Income from sale of Fixed Assets
10
-
-
10
4
-
-
4
Rental Income
168
-
-
168
-
-
-
-
Property Service Charge Income
201
-
-
201
-
-
-
-
Other Income
67
-
-
67
-
-
-
-
~~**Other Income**~~
~~**446**~~
~~**-**~~
~~**-**~~
~~**446**~~
~~**4**~~
~~**-**~~
~~**-**~~
~~**4**~~|
|---|---|
www.motabilityfoundation.org.uk **97**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
## 5. Charitable Expenditure
||Direct Allocated
Direct Allocated
Direct
Charitable
Support Governance
Total
Direct Charitable
Support Governance
Total
Grants
Activity
Costs
Costs
Costs
Grants
Activity
Costs
Costs
Costs
2024
2024
2024
2024
2024
2023
2023
2023
2023
2023
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
**Grants to Individuals:**
Scheme-Related Grants
72,603
5,307
6,892
735
85,537
74,585
5,542
7,059
582
87,768
Access to Mobility
9,165
662
860
92
10,779
3,979
296
377
31
4,683
PIP Provision Release
(240)
-
-
-
(240)
-
-
-
-
-
~~**Grants to Individuals**~~
~~**81,528**~~
~~**5,969**~~
~~**7,752**~~
~~**827**~~
~~**96,076**~~
~~**78,564**~~
~~**5,838**~~
~~**7,436**~~
~~**613**~~
~~**92,451**~~
**Grants to Organisations:**
Support of Under-Fives
(Family Fund, Wizzybug)
5,750
420
546
58
6,774
7,000
520
663
55
8,238
Innovation Grants
2,729
199
259
28
3,215
1,464
109
138
11
1,722
Designated Grants to
Organisations Programme
11,104
812
1,055
112
13,083
6,146
457
582
48
7,233
~~**Grants to Organisations**~~
~~**19,583**~~
~~**1,431**~~
~~**1,860**~~
~~**198**~~
~~**23,072**~~
~~**14,610**~~
~~**1,086**~~
~~**1,383**~~
~~**114**~~
~~**17,193**~~
~~**Motability Foundation**~~
~~**Funded Grant-Making**~~
~~**101,111**~~
~~**7,400**~~
~~**9,612**~~
~~**1,025**~~
~~**119,148**~~
~~**93,174**~~
~~**6,924**~~
~~**8,819**~~
~~**727 109,644**~~
Build Awareness
-
2,239
199
14
2,452
-
1,725
152
12
1,889
Innovation
-
1,373
121
13
1,507
-
1,300
114
10
1,424
Motability Scheme
-
411
36
4
451
-
276
24
3
303
~~**Charitable Expenditure**~~
~~**101,111**~~
~~**11,423**~~
~~**9,968**~~
~~**1,056**~~
~~**123,558**~~
~~**93,174**~~
~~**10,225**~~
~~**9,109**~~
~~**752**~~
~~**113,260**~~
~~**Support and governance costs**~~
~~**allocated to cost of raising fund**~~
~~**-**~~
~~**-**~~
~~**754**~~
~~**9**~~
~~**763**~~
~~**-**~~
~~**-**~~
~~**-**~~
~~**11**~~
~~**11**~~|
|---|---|
The value of Charitable Expenditure by Activity has been used as the basis for apportionment of the support and governance costs shown above. The release of the PIP provision during 2024 results from a reassessment of the assumptions at year end, following actual payment experience during the year.
List of organisations in receipt of grants during the year can be found in Appendix 1.
**98** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## 5. Charitable Expenditure Cont.
||**Reconciliation of Grants Payable:**
2024
2023
£’000
£’000
Grants Payable at 1 April
76,007
44,494
Grant Awards in the Year - Individuals
81,768
78,564
Grant Awards in the Year - Organisations
19,584
14,610
Grants Settled During the Year
(98,031)
(61,661)
~~**Grants Payable at 31 March**~~
~~**79,328**~~
~~**76,007**~~
**Outstanding Grants Payable**
2024
2023
**at 31 March are payable as follows:**
£’000
£’000
Within One Year (Note 14)
79,328
76,007
~~**Payable at 31 March**~~
~~**79,328**~~
~~**76,007**~~|
|---|---|
www.motabilityfoundation.org.uk **99**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
## 6. Analysis of Total Expenditure
||Direct
Allocated
Cost of
Direct
Charitable
Support
Governance
Total
Raising Funds
Grants
Activity
Costs
Costs
Costs
2024
2024
2024
2024
2024
2024
£’000
£’000
£’000
£’000
£’000
£’000
Other Cost of Raising Funds
362
-
-
-
9
371
Cost of Goods Sold and Other Costs
1,408
-
-
-
-
1,408
Investment Management Fees and Other Costs
17,123
-
-
754
-
17,877
~~**Cost of Raising Funds**~~
~~**18,893**~~
~~**-**~~
~~**-**~~
~~**754**~~
~~**9**~~
~~**19,656**~~
Grant-Making
-
101,112
7,401
9,611
1,025
119,149
Build Awareness and Engagement
-
-
2,239
198
14
2,451
Innovation
-
-
1,373
121
13
1,507
Motability Scheme
-
-
411
36
4
451
~~**Charitable Expenditure**~~
~~**-**~~
~~**101,112**~~
~~**11,424**~~
~~**9,966**~~
~~**1,056**~~
~~**123,558**~~
~~**Total Expenditure**~~
~~**18,893**~~
~~**101,112**~~
~~**11,424**~~
~~**10,720**~~
~~**1,065**~~
~~**143,214**~~|
|---|---|
Please refer to Note 7 for an analysis of functional support costs by activity.
The amounts of ‘Allocated Support Costs’ attributed to ‘Direct Grants’ and ‘Direct Charitable Activities’ are in proportion to the direct expenditure on those activities.
||Direct
Allocated
Cost of
Direct
Charitable
Support
Governance
Total
Raising Funds
Grants
Activity
Costs
Costs
Costs
2023
2023
2023
2023
2023
2023
£’000
£’000
£’000
£’000
£’000
£’000
Other Cost of Raising Funds
128
-
-
-
11
139
Cost of Goods Sold and Other Costs
1,603
-
-
-
-
1,603
Investment Management Fees and Other Costs
14,020
-
-
-
-
14,020
~~**Cost of Raising Funds**~~
~~**15,751**~~
~~**-**~~
~~**-**~~
~~**-**~~
~~**11**~~
~~**15,762**~~
Grant-Making
-
93,174
6,924
8,819
727
109,644
Build Awareness and Engagement
-
-
1,725
152
12
1,889
Innovation
-
-
1,300
114
10
1,424
Motability Scheme
-
-
276
24
3
303
~~**Charitable Expenditure**~~
~~**-**~~
~~**93,174**~~
~~**10,225**~~
~~**9,109**~~
~~**752**~~
~~**113,260**~~
~~**Total Expenditure**~~
~~**15,751**~~
~~**93,174**~~
~~**10,225**~~
~~**9,109**~~
~~**763**~~
~~**129,022**~~|
|---|---|
Please refer to Note 7 for an analysis of functional support costs by activity. The amounts of ‘Allocated Support Costs’ attributed to ‘Direct Grants’ and ‘Direct Charitable Activities’ are in proportion to the direct expenditure on those activities.
**100** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## 6. Analysis of Total Expenditure Cont.
||Governance
Governance
Costs
Costs
2024
2023
£’000
£’000
External Audit Fees
191
154
Internal Audit Fees
79
56
Legal Fees
282
152
Members Expenses
16
4
Staff Costs
479
389
Other Costs
18
8
~~**Governance Costs**~~
~~**1,065**~~
~~**763**~~|
|---|---|
The External Audit Fees expenditure shown above includes fees of £191,280 payable to the Statutory Auditor, comprising of £146,350 for the Statutory Audit of the Motability Foundation for the current year, plus £36,000 in respect of the prior year. In addition, £8,950 was paid for the Statutory Audit of the Trading Subsidiary’s Accounts.
£100,059 was paid for non audit services to the Statutory Auditor.
Internal Audit has been partially outsourced to an independent firm of auditors. £102,235 was paid to Grant Thornton during the year.
www.motabilityfoundation.org.uk **101**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
## 7. Analysis of Support and Governance Costs
||Cost of
Raising Funds
2024
£’000|~~**Strateic Pillars**~~|
|---|---|---|
|||~~**g**~~
Grant-
Build
Motability
**Total**
Making
Awareness
Innovation
Scheme
**Strategic**
**Pillars**
2024
2024
2024
2024
**2024**
£’000
£’000
£’000
£’000
**£’000**|
||Human Resources
-
Information Technology
-
Finance and Administration
754
Performance and Innovation
-
Facilities
-
VAT, Depreciation and Other
-
~~**Alltd St Ct**~~
~~**754**~~|1,122
23
14
4
1,163
1,784
37
23
7
1,851
1,745
36
22
7
1,810
422
9
5
2
438
1,823
38
23
7
1,891
2,715
56
34
10
2,815
~~**9611**~~
~~**199**~~
~~**121**~~
~~**37**~~
~~**9968**~~|
||~~**ocae uppor oss**~~
~~**Gnn Ct ( Nt 5)**~~
~~**9**~~|~~**,**~~
~~**,**~~
~~**1025**~~
~~**14**~~
~~**13**~~
~~**4**~~
~~**1056**~~|
||~~**overace oss see oe**~~
~~**Total Suort and Governance Costs**~~
~~**763**~~|
~~**,**~~
~~**10636**~~
~~**213**~~
~~**134**~~
~~**41**~~
~~**11024**~~|
|||~~**,**~~
~~**,**~~|
Please refer to Note 5 where Support and Governance Costs are summarised.
The value of Charitable Expenditure by Activity has been used as the basis for apportionment of the Support and Governance Costs shown above after direct attribution to the cost of raising funds. In 2023, the attributed amounts were £518k, so the total equivalent Finance & Administration total was £2,061k. Showing the allocation to cost of raising funds gives greater clarity on the internal costs of these activities.
||~~**Strategic Pillars**~~
Cost of
Grant-
Build
Motability
**Total**
Raising Funds
Making
Awareness
Innovation
Scheme
**Strategic**
Total
**Pillars**
2023
2023
2023
2023
2023
**2023**
2023
£’000
£’000
£’000
£’000
£’000
**£’000**
£’000
Human Resources
-
1,022
18
13
3
1,056
1,056
Information Technology
-
1,419
24
18
4
1,465
1,465
Finance and Administration
-
1,494
26
19
4
1,543
1,543
Performance and Innovation
-
448
8
6
1
463
463
Facilities
-
1,480
25
19
4
1,528
1,528
VAT, Depreciation and Other
-
2,956
51
39
8
3,054
3,054
~~**Allocated Support Costs**~~
~~**-**~~
~~**8,819**~~
~~**152**~~
~~**114**~~
~~**24**~~
~~**9,109**~~
~~**9,109**~~
~~**Governance Costs (see Note 5)**~~
~~**11**~~
~~**727**~~
~~**12**~~
~~**10**~~
~~**3**~~
~~**752**~~
~~**763**~~
~~**Total Support and Governance Costs**~~
~~**11**~~
~~**9,546**~~
~~**164**~~
~~**124**~~
~~**27**~~
~~**9,861**~~
~~**9,872**~~|
|---|---|
Please refer to Note 5 where Support and Governance Costs are summarised. The value of Charitable Expenditure by Activity has been used as the basis for apportionment of the Support and Governance Costs shown above. The value of Charitable Expenditure by Activity has been used as the basis for apportionment of the Support and Governance Costs shown above.
**102** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## 8. Governors, Employees and Related Parties
## **A. Numbers and Costs**
The average number of persons employed by the Group during the year analysed by category, was as follows:
||2024
2023
Number
Number
Charitable Activities
177
172
Support Staff
78
63
Governance
13
10
Motability Enterprises Ltd
1
1
~~**Total**~~
~~**269**~~
~~**246**~~
**Staff costs were as follows:**
2024
2023
£’000
£’000
Salaries
10,942
9,690
Benefts in Kind
366
283
Social Security Costs
1,155
1,049
Pension Costs: Defned Beneft
250
264
Pension Costs: Defned Contribution
1,400
1,190
Restructuring Costs
-
54
Other Staff Costs
498
490
~~**Total**~~
~~**14,611**~~
~~**13,020**~~|
|---|---|
The number of employees whose emoluments, excluding pension contributions and employers NI, for the year fell within the following bands:
||2024
2023
Number
Number
£60,000 to £69,999
11
9
£70,000 to £79,999
11
6
£80,000 to £89,999
2
1
£90,000 to £99,999
6
5
£100,000 to £109,999
1
2
£120,000 to £129,999
-
1
£130,000 to £139,999
1
-
£150,000 to £159,999
-
1
£160,000 to £169,999
1
-
£180,000 to £189,999
-
1
£190,000 to £199,999
1
1
£200,000 to £209,999
1
-
~~**Total**~~
~~**35**~~
~~**27**~~|
|---|---|
www.motabilityfoundation.org.uk **103**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
## 8. Governors, Employees and Related Parties cont.
Key Management Personnel of the Group and Charity are defined as the Governors and the Executive Directors: The Chief Executive; Finance Director; Chief Investment Officer; Chief Communications Officer; Director of Charitable Operations and Director of Performance and Innovation.
The total remuneration (including employers NIC, pension contributions and benefits in kind) of the Key Management Personnel of the Charity for the year totalled £1,077,337 (2023: £892,506).
During the year, no termination payment was made to Governors or Key Management Personnel (2023: nil, £52,029 was paid to other staff).
Richard Cartwright was reimbursed £6,495 in respect of lost earnings in the year (2023: nil).
Six Governors (2023: 10) received reimbursement of expenses for travel and accommodation costs amounting to £3,390 (2023: £4,102).
## **C. Professional Indemnity**
Appropriate insurance has been arranged by the Charity to indemnify Governors and employees for their legal liability for damages and legal expenses arising from the performance of their duties. In 2024, this was £10.0m (2023: £10.0m).The cost of the policy in 2024 was £0.04m (2023: £0.03m).
company whose shares are held by four major banks.
Motability Operations make donations from surplus capital to the Motability Foundation. A donation of £250m was made to the Motability Foundation’s Endowment fund (Motability Endowment Trust) in the year (2023: £200m to the Motability Foundation’s general fund).
The Motability Foundation paid Motability Operations £66.7m (2023: £42.1m) in respect of grants awarded to customers to fund Advance Payments and adaptations on vehicles provided under the lease schemes by Motability Operations to customers in receipt of grants.
## **D. Related Parties**
The Motability Foundation does not pay bonuses to staff. During the year, the Motability Foundation paid £6,142 (2023: £4,447) in long-service awards for staff who celebrated between 10 and 30 years’ service as part of its employee reward and recognition arrangements.
## **B. Governors’ Emoluments**
The number of Governors in 2024 was 11 (2023: 10).
The Motability Foundation values diversity of lived experience, including within its governance. To this end, the Royal Charter provides for up to three Governors to be reimbursed lost earnings in respect of their roles.
Motability Endowment Trust (MET) was set up in 2019 to support the work of the Motability Foundation. The Motability Foundation is the sole corporate Trustee of MET. During the period an administration charge of £0.52m was paid by MET to the Motability Foundation (2023: £0.52m).
Related parties include the Executive Team (Key Management Personnel) as shown in section (a) along with Governors of the Charity.
The Motability Foundation directs and oversees the Motability Scheme, which is operated on behalf of the Motability Foundation by Motability Operations, a separate commercial
As at 31 March 2024, Motability Operations was due £11.7m (2023: £6m) in outstanding invoices and £67.6m (2023: £68.2m) in accrued commitments, totalling £79.3m (2023: £74.2m) from the Motability Foundation.
In addition, for 2024, £5.2m (2023: £4.4m) was received from Motability Operations as rebates, where customers terminated their lease agreements early, in respect of grant awards towards Advance Payments and adaptations managed by Motability Operations.
As at 31 March 2024, £1.6m (2023: £0.5m) was due to the
**104** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## 8. Governors, Employees and Related Parties cont.
Motability Foundation from Motability Operations for lease agreement rebates.
The Motability Foundation has a wholly owned trading subsidiary, Motability Enterprises Limited (MEL) – see Note 2 for details. In 2024, the Motability Foundation invoiced MEL £0.09m (2023: £0.09m) in respect of administration charges. As at 31 March 2024, £0.3m (2023: £0.1m) was due from MEL to the Motability Foundation as a qualifying
distribution under Deed of Covenant. MEL recharged the Motability Foundation £1m (2023: £1.1m) in respect of the fixed and charitable variable costs for the production of Lifestyle magazine. These costs are included in the Charity’s and Group expenditure. As at 31 March 2024, there was £0.09m due from the Motability Foundation to MEL (2023: £0.1m). For the financial year 2022/23, Cheryl Ward served as a Governor, resigning 22 September 2022. During her tenure, the amounts of grants awarded to
Family Fund, of which Cheryl Ward was the CEO, were £1.5m in 2022 and £5.5m in 2023 under a pilot and now under a programme. Cheryl Ward recused herself from decision making for these grants.
The Motability Foundation paid £0.1m (2023: £0.2m) to Motability Pension Scheme (in respect of the defined benefit scheme’s administration expenses) which closed to future accrual from 30 April 2012. See Note 22.
## 9. Fixed Asset Investment in Subsidiary Undertaking
|||Group|Group||
|---|---|---|---|---|
|||2024|2023||
|||£|£||
||Investments in Motability Enterprises Ltd|100|100||
||~~**Fixed Asset Investment in Subsidiary Undertaking**~~|~~**100**~~|~~**100**~~||
||||||
The Motability Foundation owns 100 per cent of the share capital and holds 100 ordinary shares of £1 each in Motability Enterprises Limited, incorporated in the UK (Company No.1786053) whose registered office is Warwick House, Roydon Road, Harlow, Essex, CM19 5PX.
The company incorporated in the UK carries out certain trading activities in order to raise funds for the Motability Foundation (Note 2).
www.motabilityfoundation.org.uk **105**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
## 10. Intangible Fixed Assets (Group and Charity)
||Computer
Intellectual
Assets in the Course
Software
Property
of Construction
Total
2024
2024
2024
2024
£’000
£’000
£’000
£’000
**Cost**
~~**At 1 April 2023**~~
~~**2,472**~~
~~**-**~~
~~**131**~~
~~**2,603**~~
Work in Progress
-
-
-
-
Additions
576
80
-
656
Disposals
-
-
-
-
Transfers
-
131
(131)
-
~~**At 31 March 2024**~~
~~**3,048**~~
~~**211**~~
~~**-**~~
~~**3,259**~~
**Amortisation and Impairment**
~~**At 1 April 2023**~~
~~**1,697**~~
~~**-**~~
~~**-**~~
~~**1,697**~~
Amortisation charged for the Year
271
20
-
291
Eliminated on Disposals
-
-
-
-
~~**At 31 March 2024**~~
~~**1,968**~~
~~**20**~~
~~**-**~~
~~**1,988**~~
**Net Book Value (net of the above)**
~~**At 31 March 2023**~~
~~**775**~~
~~**-**~~
~~**131**~~
~~**906**~~
~~**At 31 March 2024**~~
~~**1,080**~~
~~**191**~~
~~**-**~~
~~**1,271**~~|
|---|---|
All assets are used for direct charitable purposes.
**106** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## 10. Tangible Fixed Assets (Group and Charity)
||2024
2024
2024
2024
2024
2024
2024
2024
2024
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
**Cost**
~~**At 1 April 2023**~~
~~**-**~~
~~**-**~~
~~**-**~~
~~**4,181**~~
~~**818**~~
~~**274**~~
~~**857**~~
~~**73**~~
~~**6,203**~~
Additions
1,064
5,286
86
-
93
14
46
-
6,589
Work in Progress
-
-
-
-
-
-
-
-
-
Disposals
-
-
-
-
(23)
(14)
(29)
-
(66)
Transfers
-
72
-
-
1
-
-
(73)
-
~~**At 31 March 2024**~~
~~**1,064**~~
~~**5,358**~~
~~**86**~~
~~**4,181**~~
~~**889**~~
~~**274**~~
~~**874**~~
~~**-**~~
~~**12,726**~~
**Depreciation and Impairment**
~~**At 1 April 2023**~~
~~**-**~~
~~**-**~~
~~**-**~~
~~**3,510**~~
~~**574**~~
~~**261**~~
~~**680**~~
~~**-**~~
~~**5,025**~~
Charged in the Year
-
119
13
671
137
6
85
-
1,031
Adjustment for Impairment
on Acquisition
-
610
-
-
-
-
-
-
610
Eliminated on Disposals
-
-
-
-
(23)
(14)
(30)
-
(67)
~~**At 31 March 2024**~~
~~**-**~~
~~**729**~~
~~**13**~~
~~**4,181**~~
~~**688**~~
~~**253**~~
~~**735**~~
~~**-**~~
~~**6,599**~~
**Net Book Value (net of the above)**
~~**At 31 March 2023**~~
~~**-**~~
~~**-**~~
~~**-**~~
~~**671**~~
~~**244**~~
~~**13**~~
~~**177**~~
~~**73**~~
~~**1,178**~~
~~**At 31 March 2024**~~
~~**1,064**~~
~~**4,629**~~
~~**73**~~
~~**-**~~
~~**201**~~
~~**21**~~
~~**139**~~
~~**-**~~
~~**6,127**~~
Freehold
Land
Freehold
Building
Freehold
Refurbishment
Leasehold
Refurbishment
Motor
Vehicles
Fixtures and
Fittings
Computer
Hardware
Total
Assets in the
Course of Construction|
|---|---|
www.motabilityfoundation.org.uk **107**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
## 11. Investments Movement
||**Group and Charity**
Fixed Asset
Current Asset
Group and
Fixed Asset
Current Asset
Group and
Investments
Investments
Charity
Investments
Investments
Charity
**Reconciliation of Movement in**
2024
2024
2024
2023
2023
2023
**Fair Value during the period**
£’000
£’000
£’000
£’000
£’000
£’000
~~**Fair Value as at 1 April**~~
~~**1,726,040**~~
~~**105,491**~~
~~**1,831,531**~~
~~**1,647,738**~~
~~**56,864**~~
~~**1,704,602**~~
Reclassifcation
-
-
-
(4)
4
-
**Additions:**
Amounts Invested
734,656
187,476
922,132
722,638
184,839
907,477
Reinvested Investment Income
28,276
2,406
30,682
23,021
-
23,021
**Withdrawals:**
Amounts Withdrawn
(593,527)
(176,389)
(769,916)
(628,193)
(138,081)
(766,274)
Investment Fees Charged to Capital
(13,910)
(20)
(13,930)
(12,563)
(459)
(13,022)
Gains / (Losses) in the Year
228,636
1,368
230,004
(26,722)
1,484
(25,238)
Movement in Investment Portfolio Cash
(117)
(805)
(922)
125
840
965
~~**Fair Value as at 31 March**~~
~~**2,110,054**~~
~~**119,527**~~
~~**2,229,581**~~
~~**1,726,040**~~
~~**105,491**~~
~~**1,831,531**~~|
|---|---|
For 2023, the investment loss shown above of £25.238m, when adjusted for foreign exchange losses of £33k, gives the Net (Losses) / Gains on Investments figure of £25.271m shown on the Consolidated Statement of Financial Activities.
**108** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## 12. Investments Valuation
||
Fixed Asset
Current Asset
Group and
Fixed Asset
Current Asset
Group and
Investments
Investments
Charity Investments
Investments
Charity
**At 31 March**
2024
2024
2024
2023
2023
2023
**Group and Charity investments comprised:**
£’000
£’000
£’000
£’000
£’000
£’000
Equity Securities
1,074,002
-
1,074,002
810,576
-
810,576
Debt Securities
478,381
81,323
559,704
514,075
93,797
607,872
Infrastructure and Property
265,231
-
265,231
147,053
-
147,053
Other Investments
223,921
-
223,921
126,400
-
126,400
Money Market Instruments
53,519
10,204
63,723
127,936
11,694
139,630
Bank Deposits
15,000
28,000
43,000
-
-
-
~~**Fair Value as at 31 March**~~
~~**2,110,054**~~
~~**119,527**~~
~~**2,229,581**~~
~~**1,726,040**~~
~~**105,491**~~
~~**1,831,531**~~|
|---|---|
As at 31 March 2024, there were uncalled capital commitments to investment firms totalling £120m (2023 : £144m).
The investment portfolio held at 31 March 2024 is being held for the long term and contains a mix of investments, including cash balances held by investment managers under discretionary mandates. Other investments include private credit, private equity, venture capital and absolute return investments.
||Listed
Unlisted
Total
Listed
Unlisted
Total
2024
2024
2024
2023
2023
2023
**Listed and Unlisted Investment Valuation**
£’000
£’000
£’000
£’000
£’000
£’000
Fixed Assets
915,686
1,194,368
2,110,054
1,258,565
467,475
1,726,040
Current Assets
91,527
28,000
119,527
105,491
-
105,491
~~**Total**~~
~~**1,007,213**~~
~~**1,222,368**~~
~~**2,229,581**~~
~~**1,364,056**~~
~~**467,475**~~
~~**1,831,531**~~|
|---|---|
Motability Endowment Trust hedges one half of its non-sterling exposure in its passive equity portfolio into sterling using forward contracts in order to maintain an appropriate exposure to sterling, which is the currency in which charitable expenditure is denominated. The sterling value of the amount hedged at 31 March 2024 was £250m (2023: £200m). The value of these contracts was £0.2m at 31 March 2024 (2023: £4.7m).
Income from Financial Assets measured at fair value is disclosed in Note 3.
www.motabilityfoundation.org.uk **109**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
## 13. Debtors
||Group
Group
Charity
Charity
2024
2023
2024
2023
£’000
£’000
£’000
£’000
Trade and Other Debtors
106
202
106
55
Amounts Owed by Motability Operations Ltd
1,405
542
1,405
542
~~**Trade Debtors and Other Receivables**~~
~~**1,511**~~
~~**744**~~
~~**1,511**~~
~~**597**~~
Amounts Owed by Subsidiary - Motability Enterprises Ltd
-
-
351
115
Accrued Income
5,303
4,503
5,265
4,346
Prepayments
1,054
977
965
971
~~**Debtors**~~
~~**7,868**~~
~~**6,224**~~
~~**8,092**~~
~~**6,029**~~|
|---|---|
Included in Accrued Income is £5.2m of accrued investment income (2023: £4.3m).
**110** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## 14. Creditors: Amounts Falling Due Within One Year
||Group
Group
Charity
Charity
2024
2023
2024
2023
£’000
£’000
£’000
£’000
Scheme-Related Grants
68,250
68,700
68,250
68,700
Access to Mobility
6,923
2,303
6,923
2,303
Support of Under-Fives
-
500
-
500
Innovation Grants
818
497
818
497
Designated Grants to Organisations Programme
3,337
4,007
3,337
4,007
~~**Grants Commitments Falling Due within One Year**~~
~~**79,328**~~
~~**76,007**~~
~~**79,328**~~
~~**76,007**~~
Other Creditors including Taxation and Social Security
410
298
364
272
Amounts due in respect of
Grant Programmes and Trade Creditors
14,229
8,371
14,228
8,329
Amounts Owed to Subsidiary -
Motability Enterprises Ltd
-
-
9
59
Accrued Liabilities
2,655
1,300
2,644
997
~~**Liabilities Falling Due within One Year**~~
~~**96,622**~~
~~**85,976**~~
~~**96,573**~~
~~**85,664**~~
Amounts Owed to Motability Operations Limited
79,323
74,206
79,323
74,206
Amounts Owed to Third Party Suppliers
and Other Creditors
13,144
6,766
13,086
6,395
Amounts Owed to Organisational Grants Benefciaries
4,155
5,004
4,155
5,004
Amounts Owed to Subsidiary -
Motability Enterprises Ltd
-
-
9
59
~~**Liabilities Falling Due within One Year**~~
~~**96,622**~~
~~**85,976**~~
~~**96,573**~~
~~**85,664**~~|
|---|---|
www.motabilityfoundation.org.uk **111**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
## 15. Provisions
||Group
Group
2024
2023
£’000
£’000
**Group and Charity Landlord’s Sinking Fund**
Provision brought forward 1 April
-
-
Provision added in Year
495
-
~~**Landlord’s Sinking Fund Provision Carried Forward 31 March**~~
~~**495**~~
~~**-**~~
**Group and Charity Dilapidation Provision**
Provision brought forward 1 April
560
560
Provision Utilised in Year
(560)
-
~~**Dilapidation Provision Carried Forward 31 March**~~
~~**-**~~
~~**560**~~
**Group and Charity Provision for Uncashed Cheques**
Provision brought forward 1 April
120
112
Movement in Provision
1
8
~~**Provision for Uncashed Cheques Carried Forward 31 March**~~
~~**121**~~
~~**120**~~
**Group and Charity PIP Provision**
Provision brought forward 1 April
400
400
Provision Released in Year
(240)
-
~~**PIP Provision Carried Forward 31 March**~~
~~**160**~~
~~**400**~~
~~**Provisions**~~
~~**776**~~
~~**1,080**~~|
|---|---|
The Charity holds funds provided for its possible liability in relation to its freehold property totalling £495k. The Sinking Fund represents anticipated future expenditure as current plant and machinery at Warwick House becomes due for replacement.
The Charity released its dilapidation liability following purchase of its leasehold property.
The Charity has provided for its possible liability in relation to its unpresented cheques totalling £121k.
The Charity released £240k for its possible liability in relation to its PIP Transitional Support Programme carrying forward a balance of £160k. Please refer to Note 1 Accounting Policies - Section K: Accounting for PIP Transitional Grants for further information.
**112** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## 16. Analysis of Group Net Assets / Liabilities Between Funds
||Group
Group
Group
Group
Unrestricted
Restricted
Endowment
Total
2024
2024
2024
2024
£’000
£’000
£’000
£’000
**Fund balances at 31 March 2024 are represented by:**
Intangible Fixed Assets
1,271
-
-
1,271
Tangible Assets
6,127
-
-
6,127
Fixed Asset Investments
366,710
44,038
1,699,306
2,110,054
Net Current Assets
57,263
2,263
4,880
64,406
Provisions and Pensions
(1,681)
(242)
-
(1,923)
~~**429,690**~~
~~**46,059**~~
~~**1,704,186**~~
~~**2,179,935**~~|
|---|---|
||Group
Group
Group
Group
Unrestricted
Restricted
Endowment
Total
2023
2023
2023
2023
£’000
£’000
£’000
£’000
**Fund balances at 31 March 2023 are represented by:**
Intangible Fixed Assets
906
-
-
906
Tangible Assets
1,178
-
-
1,178
Fixed Asset Investments
467,707
41,755
1,216,578
1,726,040
Net Current Assets
45,881
2,468
7,824
56,173
Creditors: Amounts Falling Due after One Year
(10)
-
-
(10)
Provisions and Pensions
(1,336)
(481)
-
(1,817)
~~**514,326**~~
~~**43,742**~~
~~**1,224,402**~~
~~**1,782,470**~~|
|---|---|
www.motabilityfoundation.org.uk **113**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
## 17. Analysis of Charity Net Assets / Liabilities Between Funds
||Charity
Charity
Charity
Charity
Unrestricted
Restricted
Endowment
Total
2024
2024
2024
2024
£’000
£’000
£’000
£’000
**Fund balances at 31 March 2024 are represented by:**
Intangible Fixed Assets
1,271
-
-
1,271
Tangible Assets
6,127
-
-
6,127
Fixed Asset Investments
366,710
44,038
1,699,306
2,110,054
Net Current Assets
57,248
2,263
4,880
64,391
Provisions and Pensions
(1,681)
(242)
-
(1,923)
~~**429,675**~~
~~**46,059**~~
~~**1,704,186**~~
~~**2,179,920**~~|
|---|---|
||Charity
Charity
Charity
Charity
Unrestricted
Restricted
Endowment
Total
2023
2023
2023
2023
£’000
£’000
£’000
£’000
**Fund balances at 31 March 2023 are represented by:**
Intangible Fixed Assets
906
-
-
906
Tangible Assets
1,178
-
-
1,178
Fixed Asset Investments
467,707
41,755
1,216,578
1,726,040
Net Current Assets
45,866
2,468
7,824
56,158
Creditors: Amounts Falling Due after One Year
(10)
-
-
(10)
Provisions and Pensions
(1,336)
(481)
-
(1,817)
~~**514,311**~~
~~**43,742**~~
~~**1,224,402**~~
~~**1,782,455**~~|
|---|---|
**114** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## 18. Unrestricted Funds
||Transfer
Other
Balance at
Balance at
between Investment
Realised
31 March
1 April 2023
Income Expenditure
Funds
Gains
Losses
2024
**Movement in Funds:**
£’000
£’000
£’000
£’000
£’000
£’000
£’000
**Group**
General Funds
470,472
31,948
(116,146)
-
10,931
(265)
396,940
Designated Fund -
Grants to Charities and Organisations
43,854
-
(11,104)
-
-
-
32,750
~~**Unrestricted Funds**~~
~~**514,326**~~
~~**31,948**~~
~~**(127,250)**~~
~~**-**~~
~~**10,931**~~
~~**(265)**~~
~~**429,690**~~
**Charity**
General Funds
470,457
31,376
(115,575)
-
10,931
(265)
396,924
Designated Fund -
Grants to Charities and Organisations
43,854
-
(11,104)
-
-
-
32,750
~~**Unrestricted Funds**~~
~~**514,311**~~
~~**31,376**~~
~~**(126,679)**~~
~~**-**~~
~~**10,931**~~
~~**(265)**~~
~~**429,674**~~|
|---|---|
Designated funds are general funds set aside by the Governors for specific purposes, normally given in the fund title. In 2021/22, the Governors designated £50m to fund grants to charities and organisations over the next three years.
||Transfer
Other
Balance at
Balance at
between Investment
Realised
31 March
1 April 2022
Income Expenditure
Funds
Losses
Gains
2023
**Movement in Funds:**
£’000
£’000
£’000
£’000
£’000
£’000
£’000
**Group**
General Funds
368,382
220,282
(110,525)
-
(8,145)
478
470,472
Designated Fund -
Grants to Charities and Organisations
50,000
-
(6,146)
-
-
-
43,854
~~**Unrestricted Funds**~~
~~**418,382**~~
~~**220,282**~~
~~**(116,671)**~~
~~**-**~~
~~**(8,145)**~~
~~**478**~~
~~**514,326**~~
**Charity**
General Funds
368,367
219,556
(109,799)
-
(8,145)
478
470,457
Designated Fund -
Grants to Charities and Organisations
50,000
-
(6,146)
-
-
-
43,854
~~**Unrestricted Funds**~~
~~**418,367**~~
~~**219,556**~~
~~**(115,945)**~~
~~**-**~~
~~**(8,145)**~~
~~**478**~~
~~**514,311**~~|
|---|---|
www.motabilityfoundation.org.uk **115**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
## 19. Restricted Funds
||Transfer
Balance
Balance at
Investment
between
at 31 March
1 April 2023
Income
Expenditure
Gain
Funds
2024
**Group and Charity**
£’000
£’000
£’000
£’000
£’000
£’000
PIP Transitional Support Programme
43,742
1,620
56
641
-
46,059
~~**Restricted Fund**~~
~~**43,742**~~
~~**1,620**~~
~~**56**~~
~~**641**~~
~~**-**~~
~~**46,059**~~|
|---|---|
Restricted Fund negative expenditure is made up of expenditure of £184k and a release of £240k from the PIP provision. Restricted Funds may only be spent for the purpose specified by the donor, normally as given in the fund title. PIP Transitional Support Programme is used to support beneficiaries who lose their allowance due to reassessment.
||Transfer
Balance at
Investment
between
Balance at
1 April 2022
Income
Expenditure
Gain
Funds
31 March 2023
**Group and Charity**
£’000
£’000
£’000
£’000
£’000
£’000
PIP Transitional Support Programme
42,488
443
(261)
1,072
-
43,742
~~**Restricted Fund**~~
~~**42,488**~~
~~**443**~~
~~**(261)**~~
~~**1,072**~~
~~**-**~~
~~**43,742**~~|
|---|---|
## 20. Endowment Fund
||Other
Balance at
Investment
Realised
Balance at
1 April 2023
Income
Expenditure
Gains
Gains 31 March 2024
**Group and Charity**
£’000
£’000
£’000
£’000
£’000
£’000
Endowment Fund
1,224,402
277,372
(16,020)
218,432
-
1,704,186
~~**Endowment Fund**~~
~~**1,224,402**~~
~~**277,372**~~
~~**(16,020)**~~
~~**218,432**~~
~~**-**~~
~~**1,704,186**~~
Other
Balance at
Investment
Realised
Balance at
1 April 2022
Income
Expenditure
Gains
Gains 31 March 2023
**Group and Charity**
£'000
£'000
£'000
£'000
£'000
£'000
Endowment Fund
1,235,020
19,668
(12,089)
(18,198)
1
1,224,402
~~**Endowment Fund**~~
~~**1,235,020**~~
~~**19,668**~~
~~**(12,089)**~~
~~**(18,198)**~~
~~**1**~~
~~**1,224,402**~~|
|---|---|
Endowment Funds comprise the net assets of the Motability Endowment Trust only.
**116** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## 21. Funds Held as an Agent
||Balance at
Balance at
1 April 2023
Income
Expenditure
31 March 2024
**Movement in Funds**:
£’000
£’000
£’000
£’000
**Group**
Funds Held as Agent on behalf of Veterans UK
41
389
(389)
41
~~**Funds Held as Agent**~~
~~**41**~~
~~**389**~~
~~**(389)**~~
~~**41**~~
**Charity**
Funds Held as Agent on behalf of Veterans UK
41
389
(389)
41
~~**Funds Held as Agent**~~
~~**41**~~
~~**389**~~
~~**(389)**~~
~~**41**~~|
|---|---|
Funds received, paid or held as Agent are not included within the Motability Foundation’s Consolidated or Charity financial statements. These funds are accounted for directly to Veterans UK.
||Balance at
Balance at
**Movement in Funds:**
1 April 2022
Income
Expenditure
31 March 2023
£’000
£’000
£’000
£’000
**Group**
Funds Held as Agent on behalf of Veterans UK
42
400
(401)
41
~~**Funds Held as Agent**~~
~~**42**~~
~~**400**~~
~~**(401)**~~
~~**41**~~
**Charity**
Funds Held as Agent on behalf of Veterans UK
42
400
(401)
41
~~**Funds Held as Agent**~~
~~**42**~~
~~**400**~~
~~**(401)**~~
~~**41**~~|
|---|---|
The Motability Foundation administers the funds of Veterans UK to issue grants for automatic gearboxes and vehicle adaptations to War Pensioners who are in receipt of the War Pensioners Mobility Supplement (WPMS).
The Motability Foundation adheres to an agency agreement and distributes the funds it holds to specified third parties in line with the instructions given by Veterans UK.
www.motabilityfoundation.org.uk **117**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
## 22. Pension Arrangements
The Group has operated a defined benefit scheme for its employees since November 1988 under which a separate fund is being accumulated to meet the accruing liabilities which is held under a trust, entirely separate from the Charity’s assets. Payments to the scheme are made in accordance with the recommendations of qualified actuaries.
From 1 October 2005, changes were made to the defined benefit pension scheme:
- The scheme was closed to new members
- Employees who wished to retain the 1/60th benefit were asked to increase their contributions
- The ability to retire before 65 without actuarial reduction was removed
- A defined contribution scheme was available from that date to any employees wishing to receive pension benefits
The defined benefit scheme was closed to future accrual from 30 April 2012.
The last actuarial valuation was prepared using the Defined Accrued Benefits method, as at 31 March 2022. This valuation used the following assumptions:
||%|
|---|---|
|Investment return in deferment Bank of England Yield curve + 2%p.a.|3.85|
|Investment return in payment Bank of England Yield curve + 0.5% p.a.||
|(sample rate at 21 years for non-pensioners / sample rate for pensioners at duration 12 years)|2.35/2.25|
|Salary increases|Nil|
|Pension increases pre-retirement – Deferred Pensioners derived using appropriate caps and floors||
|applied to the Bank of England inflation Yield curve deducting 0.7% p.a. in respect of CPI pre-2030||
|and nil deduction after 2030|3.35|
|Pension increases pre-retirement – Employed Deferred|4.05|
|Pension increases in payment – Post-April 1997 – Pensioners|3.5|
At 31 June 2022, the market value of the scheme’s asset was £21.2m, the present value of liabilities was £21.1m resulting in an actuarial surplus of £0.1m, equivalent to a funding level of 100 per cent.
A qualified actuary using revised assumptions that are consistent with the requirements of FRS 102 has updated the actuarial valuation described above at 31 March 2024. Investments have been valued for this purpose at fair value.
The pension cost to the Charity under FRS 102 was £0.25m (2023: £0.26m). The major assumptions used for the FRS 102 actuarial valuation were:
||2024|2023|2022|
|---|---|---|---|
||% p.a.|% p.a.|% p.a.|
|Rate of increase in salaries|N/A|N/A|N/A|
|Rate of increase in pensions in payment|2.6|3|3.35|
|Discount Rate|4.8|4.7|2.64|
|Price inflation|3.1|3.3|3.85|
**118** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
22.1 The fair value of the assets in the scheme, the present value of the liabilities in the scheme and the expected rate of return at each balance sheet date were
||2024
2024
2023
2023
2022
2022
% p.a.
£’000
% p.a.
£’000
% p.a.
£’000
Equities
4.80
4,494
4.70
4,617
2.64
9,160
Bonds / Gilts
4.80
11,458
4.70
11,783
2.64
14,112
Cash
4.80
502
4.70
949
2.64
540
Property and Other
4.80
502
4.70
774
2.64
1,035
Total Fair Value of Assets
-
16,956
-
18,123
-
24,847
Present Value of Scheme Liabilities
-
(18,103)
-
(18,860)
-
(25,979)
~~**Net Pension (Liability)**~~
~~**(1,147)**~~
~~**(737)**~~
~~**(1,132)**~~|
|---|---|
The rates used for the expected return on scheme assets are based on the requirements of SORP 2019 (FRS 102) as these determine the predicted return in the year to 31 March 2024. The contribution rate for 2024 was nil of pensionable earnings (2023: nil) due to the scheme being closed to future accrual with effect from 30 April 2012.
||2024|2023|
|---|---|---|
||%|%|
|Equities|27|25|
|Bonds / Gilts|67|65|
|Cash|3|5|
|Property and Other|3|4|
The liabilities were valued using the following mortality assumptions: - Base table: S3PA
- Future mortality improvements: CMI2022 Long-term rate 1% (2023: CMI2021, 1.25%)
- Age rating: None
The following table illustrates members’ life expectancy in years, at the age of 65, based on the mortality assumptions above:
||2024|2023|
|---|---|---|
|**Retiring Now**|||
|Males|21.3|22.0|
|Females|23.7|24.4|
|**Retiring in 20 Years**|||
|Males|22.2|23.3|
|Females|24.9|25.8|
www.motabilityfoundation.org.uk **119**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
22.2 **The movement in the scheme’s deficit over the year to 31 March 2024 is summarised as follows:**
||2024
2023
£’000
£’000
**The Pension Defcit as at 31 March Comprises:**
Pension Defcit at 1 April
(737)
(1,132)
(Loss) / Gain in the Year - Actuarial
(265)
479
Contribution to Scheme Administration Costs
106
180
~~**Subtotal**~~
~~**(896)**~~
~~**(473)**~~
**Analysis of Amounts Charged to the SoFA for the Year:**
Other Finance Cost
(37)
(28)
Current Service Cost
(214)
(236)
Past Service Cost
-
-
~~**Subtotal**~~
~~**(251)**~~
~~**(264)**~~
~~**Pension defcit at 31 March**~~
~~**(1,147)**~~
~~**(737)**~~|
|---|---|
22.3 **Analysis of the amount that has been charged to the SoFA under FRS 102**
||2024
2023
£’000
£’000
Current Service Cost
214
236
~~**Total**~~
~~**214**~~
~~**236**~~|
|---|---|
22.4 **Analysis of the amount that has been debited to net finance charges under FRS 102**
||2024
2023
£’000
£’000
Expected Return on Pension Scheme Assets
834
649
Interest on Pension Scheme Liabilities
(871)
(677)
~~**Total**~~
~~**(37)**~~
~~**(28)**~~|
|---|---|
**120** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## 22.5 **Analysis of the Actuarial Movement**
||2024
2023
2022
£’000
£’000
£’000
Actual Return Less Expected Return on Pension Scheme Assets
(1,245)
(6,679)
313
Experience (Losses) / Gains Arising on the Scheme Liabilities
(484)
(1,010)
13
Changes in the Assumptions Underlying the Present
Value of the Scheme Liabilities
1,464
8,168
1,347
~~**Recognised (Loss) / Gain for the Year**~~
~~**(265)**~~
~~**479**~~
~~**1,673**~~|
|---|---|
## 22.6 **Reconciliation of Present Value Defined Benefit Obligation**
||2024
2023
£’000
£’000
**Opening Balance at 1 April**
**18,860**
**25,979**
Current Service Cost
214
236
Past Service Cost
-
-
Curtailment
-
-
Settlements
-
-
Interest Cost
871
677
Employee Contribution
-
-
Actuarial Gains
(980)
(7,158)
Administration Expenses
(214)
(236)
Changes to Exchange Rates
-
-
Benefts Paid
(648)
(638)
~~**Closing Balance at 31 March**~~
~~**18,103**~~
~~**18,860**~~|
|---|---|
## 22.7 **Reconciliation of Fair Value Plan Assets**
||2024
2023
£’000
£’000
**Opening Balance at 1 April**
**18,123**
**24,847**
Expected Return on Assets
834
649
Actual Return less Expected Return on Pension Scheme Assets
(1,245)
(6,679)
Changes to Exchange Rates
-
-
Employer Contribution
106
180
Employee Contribution
-
-
Settlements
-
-
Administration Expenses
(214)
(236)
Benefts Paid
(648)
(638)
~~**Closing Balance at 31 March**~~
~~**16,956**~~
~~**18,123**~~|
|---|---|
www.motabilityfoundation.org.uk **121**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
## 22.8 **Reconciliation of Change in Funded Status**
||2024
2023
£’000
£’000
**Opening Balance at 1 April**
**(737)**
**(1,132)**
Pension Expense
(251)
(264)
Employer Contribution
106
180
Changes to Exchange Rates
-
-
Actuarial (Loss) / Gain
(265)
479
~~**Closing Balance at 31 March**~~
~~**(1,147)**~~
~~**(737)**~~|
|---|---|
## 22.9 **History of Experienced Gains and Losses**
||2024
2023
2022
2021
2020
£’000
£’000
£’000
£’000
£’000
**Difference Between Actual and Expected Return on Assets**
Amount
(1,245)
(6,679)
313
840
990
~~**% of Scheme Assets**~~
~~**7.3%**~~
~~**36.9%**~~
~~**1.3%**~~
~~**3.4%**~~
~~**4.2%**~~
**Experience of (Losses) and Gains Arising on Liabilities**
Amount
(484)
(1,010)
13
99
1,997
~~**% of Scheme Assets**~~
~~**2.9%**~~
~~**5.6%**~~
~~**0.1%**~~
~~**0.4%**~~
~~**8.6%**~~|
|---|---|
**122** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## 23. Commitments and Conditional Grant Awards
## **i) Operating Leases**
Amounts payable in total under future minimum lease payments under non-cancellable operating leases:
||Premises
Premises
Other
Other
2024
2023
2024
2023
£’000
£’000
£’000
£’000
Within One Year
28
225
73
16
Between One and Five Years
38
50
58
-
Over Five Years
6
6
9
-
~~**Total**~~
~~**72**~~
~~**281**~~
~~**140**~~
~~**16**~~|
|---|---|
Operating Lease Expenditure
||2024
2023
£’000
£’000
Premises
215
510
Plant, Machinery and Vehicles
68
39
~~**Total**~~
~~**283**~~
~~**549**~~|
|---|---|
## **ii) Capital Commitments**
There were no commitments for expenditure on capital items in excess of £0.1m at the end of the year.
## **iii) Investment Commitments**
As at 31 March 2024, there were uncalled capital commitments to investment funds totalling £120m (2023: £144m). The two largest commitments were £21.7m for a private credit fund and £18.7m for a public equity portfolio.
These commitments will be met from liquid assets and asset sales as required in the Endowment Fund.
www.motabilityfoundation.org.uk **123**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
## 23. Commitments and Conditional Grant Awards Cont.
## **iv) Conditional Grant Awards**
All grants are subject to conditions.
The conditions for grants to individuals are usually satisfied at the time an award is made.
Grants to organisations contain performance-related conditions which then determine whether and when expenditure is recognised in the SoFA. Grants to organisations may be intended to be claimed over several years. The conditions attached to grants to organisations are regularly reviewed with the recipients. Grants are withdrawn where unclaimed or where conditions are not met.
Current grants where performance conditions had not yet been fulfilled as at 31 March 2024 are set out below.
||Current
Recognised
Conditional
Conditional
Recognised
Conditional
Conditional
in Prior Grant Award
Award
Charitable Grant Award
Awards
Years
B/Fwd
in Year Expenditure
C/Fwd
£’000
£’000
£’000
£’000
£’000
£’000
Designability (Wizzybug)
5,400
(3,700)
1,700
-
(250)
1,450
Family Fund Trust
15,000
(6,000)
9,000
-
(5,500)
3,500
~~**Total Under-Fives Grant**~~
~~**20,400**~~
~~**(9,700)**~~
~~**10,700**~~
~~**-**~~
~~**(5,750)**~~
~~**4,950**~~
Designability (EV)
761
(761)
-
-
-
-
Vehicle Design
-
-
-
203
(203)
-
Extra Mile Car Clubs
679
(484)
195
-
(195)
-
National Centre for Accessible Transport (ncat)
-
-
-
-
-
-
Evidence Centre
20,000
(255)
19,745
-
(1,333)
18,412
Scholarships
200
(68)
132
381
(130)
383
User Research Grants
1,040
(951)
89
1,403
(868)
624
~~**Total Innovation**~~
~~**22,680**~~
~~**(2,519)**~~
~~**20,161**~~
~~**1,987**~~
~~**(2,729)**~~
~~**19,419**~~
Active Travel
712
(229)
482
4,992
(1,877)
3,597
Barriers to Driving
-
-
-
2,935
(906)
2,029
Community Transport
8,925
(4,953)
3,971
5,505
(3,657)
5,818
Research
-
-
-
1,997
(1,055)
942
Travelling with Confdence
992
(331)
661
4,662
(1,772)
3,552
Wheelchairs
1,950
(633)
1,317
3,113
(1,837)
2,592
~~**Total Impact Programmes**~~
~~**12,579**~~
~~**(6,146)**~~
~~**6,431**~~
~~**23,204**~~
~~**(11,104)**~~
~~**18,531**~~
~~**Total for Grants to Organisations**~~
~~**55,659**~~
~~**(18,365)**~~
~~**37,292**~~
~~**25,191**~~
~~**(19,583)**~~
~~**42,900**~~|
|---|---|
**124** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## 23. Commitments and Conditional Grant Awards Cont.
## **The Motability Foundation awarded:**
- i) £23.2m in 2023/24 for ‘Impact’ grants. A total of £35.8m has been awarded for ‘Impact’ grants out of the £50m designated. These now cover all six Impact initiatives and the commitment can span a term of up to three years from the point of award.
- ii) £2m in 2023/24 for ‘Innovation’ grants, of which £1.4m was awarded for User Research Grants to organisations exploring experimental and new ways to make transport more accessible for disabled people. These grants span a term of 12 months from the point of award.
- iii) £20m in 2022/23 (over seven years to 2029/30) to a consortium headed by Coventry University for the creation and running of the ncat.
- iv) £15m in 2021/22 (over three years to 2024/25) to Family Fund to support the mobility of the families with children under three years old.
- v) £5.4m in 2019/20 (over four years to 2024 and subsequently extended to 2026) to Designability to support the availability of Wizzybugs to children up to the age of five.
For details of progress on major awards, please see the Grant Award Activity table on p126-128.
## 24. Taxation
As a registered charity, the Motability Foundation is potentially exempt from taxation of income and gains falling within Part 11 Income and Corporation Taxes Act 2010 and 256 Taxation Chargeable Gains Act 1992. No tax charge has arisen in the year.
No tax charge has arisen in the subsidiary due to the policy of gifting profits to the Motability Foundation each year.
## 25. Events after the reporting dates
There are no post balance sheet date events to note.
www.motabilityfoundation.org.uk **125**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
## Appendix 1 - Grant Award Activity in Year
||**Benefciary**
**2023/24**
**2022/23**
**£**
**£**
National Centre for Accessible Travel Coventry University
-
20,000,000
~~**Grant Awards to Organisations -**~~
~~**Innovation - Evidence Centre [2023/24 - 0 Grants, 2022/23 - 1 Grant]**~~
~~**-**~~
~~**20,000,000**~~
Extra Mile Car Clubs
Derbyshire Community Transport
-
158,500
Derwent Valley Car Club
-
170,708
Green Fox Energy Co-Op Ltd
-
173,000
Sussex Community Transport
-
177,000
~~**Extra Mile Car Clubs**~~
~~**-**~~
~~**679,208**~~
Scholarships
University College London
181,200
-
University of Newcastle
76,680
-
University of Westminster
123,137
-
~~**Scholarships**~~
~~**381,017**~~
~~**-**~~
User Research Grants
Autistic Minds
4,000
40,000
Autistica
206,134
-
Bus Users UK
-
40,000
CoMoUK Trust
199,382
-
Mental Health Foundation
-
145,204
National Autistic Society
163,158
-
RNIB
97,033
150,000
Sustrans
297,253
100,000
Transport for All
-
40,000
United Response
199,996
-
Visionary
-
38,000
Wheelchair Alliance
235,562
40,000
~~**User Research Grants**~~
~~**1,402,518**~~
~~**593,204**~~
Vehicle Design
Designability
203,000
-
~~**Grant Awards to Organisations -**~~
~~**Innovation**~~
~~**[2023/24 - 10 Grants, 2022/23 - 12 Grants]**~~
~~**1,986,535**~~
~~**1,272,412**~~
Active Travel
Cerebra
108,210
-
Cycling UK
1,561,660
-
Foresight
-
116,518
Friends of Pedal Power
-
595,001
Get Cycling CIC
747,640
-
Sussex Community Development Association
230,686
-
Sustrans
443,401
-
The Back Up Trust
1,300,913
-
Whizz Kidz
599,533
-
~~**Active Travel**~~
~~**4,992,043**~~
~~**711,519**~~
Barriers to Driving
Disability Action (Northern Ireland)
1,035,361
-
Driving Mobility
1,899,537
-
~~**Barriers to Driving**~~
~~**2,934,898**~~
~~**-**~~|
|---|---|
**126** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## Appendix 1 - Grant Award Activity in Year cont.
||**Benefciary**
**2023/24**
**2022/23**
**£**
**£**
Community Transport
Arran Community & Voluntary Service
-
174,035
Autism Initiatives UK
165,867
-
Ayrshire Cancer Support
543,100
-
Badenoch & Strathspey Community ConneXions
-
195,372
Cambs Society for Blind & Partially-Sighted
-
152,484
Canolfan Maerdy
365,359
-
Community ConneXions
-
216,291
Community Equality Disability Action
-
100,635
Community Transport Glasgow
614,581
-
Compaid Trust
-
392,165
Comunn Eachdraidh Nis
-
147,655
Croydon Voluntary Association for the Blind
-
673,324
Daventry Area Community Transport
-
197,789
Dial a Ride Denbighshire
295,725
-
Down Armagh Rural Transport
-
594,423
Ealing Community Transport
181,505
-
Easilink Community Transport Ltd
-
3,420,691
East Hull Community Transport
-
542,446
Green Community Travel
-
221,775
Harwich Connexions Transport Co-Operative Ltd
250,100
-
Interloch Transport
1,063
172,590
North Holderness Community Transport
-
206,900
North Norfolk Community Transprt
-
148,561
OPAL in partnership with AVSED
356,873
-
Pembrokeshire Association of Community
Transport Organisations
998,142
-
SERVE
-
650,100
Sheppey Matters
-
325,955
South Antrim Community Transport
937,271
-
South Denbighshire Community Partnership
201,371
-
South East Dorset Community Access Transport
-
200,100
Stockport Car Schemes
157,160
-
Voluntary Impact
-
191,235
Worcester Wheels
436,478
-
~~**Community Transport**~~
~~**5,504,595**~~
~~**8,924,526**~~
Research
Contact
302,672
-
Driving Mobility
85,500
-
Mental Health Innovations
357,500
-
Multiple Sclerosis Trust
61,310
-
Royal Mencap
237,250
-
Transport Research Foundation
291,822
-
University of Westminster
188,119
-|
|---|---|
www.motabilityfoundation.org.uk **127**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
## Appendix 1 - Grant Award Activity in Year cont.
||University of York
473,224
-
~~**Research**~~
~~**1,997,397**~~
~~**-**~~
Travelling with Confdence
Autism Bedfordshire
107,902
-
Community Council of Devon
206,358
-
ENABLE
-
991,557
Euan’s Guide
886,551
-
Leeds Older People’s Forum
815,378
-
My Life My Choice
245,908
-
Orchardville Society
358,086
-
Spinal Injuries Association
800,000
-
The Back Up Trust
557,999
-
Transport for All
684,178
-
~~**Travelling with Confdence**~~
~~**4,662,360**~~
~~**991,557**~~
Wheelchairs
Action for Kids
-
420,613
Aspire
395,543
-
Brittle Bone Society
-
300,000
Newlife
-
999,500
REMAP
-
229,686
Spinal Muscular Atrophy UK
717,100
-
Whizz Kidz
2,000,162
-
~~**Wheelchairs**~~
~~**3,112,805**~~
~~**1,949,799**~~
~~**Grant Awards to Organisations -**~~
~~**Impact**~~
~~**[2023/24 - 43 Grants, 2022/23 - 27 Grants]**~~
~~**23,204,098**~~
~~**12,577,401**~~
**Benefciary**
**2023/24**
**2022/23**
**£**
**£**|
|---|---|
## Summary of Grant Awards in Year
||~~**Grant Awards to Organisations -**~~
~~**Impact**~~
~~**[2023/24 - 43 Grants, 2022/23 - 27 Grants]**~~
~~**23,204,098**~~
~~**12,577,401**~~
~~**Grant Awards to Organisations -**~~
~~**Innovation**~~
~~**[2023/24 - 10 Grants, 2022/23 - 12 Grants]**~~
~~**1,986,535**~~
~~**1,272,412**~~
~~**Grant Awards to Organisations -**~~
~~**Innovation - Evidence Centre**~~
~~**[2023/24 - 0 Grants, 2022/23 - 1 Grant]**~~
~~**-**~~
~~**20,000,000**~~
~~**Total Grant Awards**~~
~~**to Organisations**~~
~~**[2023/24 - 53 Grants, 2022/23 - 40 Grants]**~~
~~**25,190,633**~~
~~**33,849,813**~~
~~**Grant Awards to Individuals**~~
~~**[2023/24 - 20,734 Individuals, 2022/23 - 19,233 Individuals]**~~
~~**81,768,359**~~
~~**78,564,136**~~
~~**Total Grants Awards in Year**~~
~~**106,958,992**~~
~~**112,413,949**~~
**Benefciary**
**2023/24**
**2022/23**
**£**
**£**|
|---|---|
**128** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## Appendix 2 - Charitable Expenditure Recognised in Year
||**Benefciary**
**2023/24**
**2022/23**
**£**
**£**
Designability (Wizzybug)
Wizzybug Loan Scheme
250,000
1,500,000
Family Fund Trust
Family Fund
5,500,000
5,500,000
~~**Grants to Organisations -**~~
~~**Special Grants**~~
~~**[2023/24 - 2 Grants, 2022/23 - 2 Grants]**~~
~~**5,750,000**~~
~~**7,000,000**~~
**Designability (EV)**
Accessible EV Charging
-
169,875
**Extra Mile Car Clubs**
Derbyshire Community Transport
42,641
115,859
Derwent Valley Car Club
47,426
123,282
Green Fox Energy Co-Op Ltd
50,105
122,895
Sussex Community Transport
54,941
122,059
~~**Extra Mile Car Clubs**~~
~~**195,113**~~
~~**484,095**~~
**ncat - Evidence Centre**
Coventry University
1,333,046
255,195
**Scholarships**
Coventry University
38,793
49,877
University College London
38,485
-
University of Newcastle
24,523
-
University of Westminster
28,537
-
~~**Scholarships**~~
~~**1,463,384**~~
~~**305,072**~~
**User Research Grants**
Autistic Minds
34,000
10,000
Autistica
103,067
-
Bus Users UK
-
40,000
CoMoUK Trust
99,691
-
Mental Health Foundation
-
145,204
National Autistic Society
81,580
-
RNIB
84,683
150,000
Sustrans
188,459
100,000
Transport for All
-
40,000
United Response
99,998
-
Visionary
28,500
9,500
Wheelchair Alliance
147,781
10,000
~~**User Research Grants**~~
~~**730,692**~~
~~**454,704**~~
**Vehicle Design**
Designability
203,000
-
~~**Grants to Organisations -**~~
~~**Innovation**~~
~~**[2023/24 - 23 Grants, 2022/23 - 17 Grants]**~~
~~**2,729,255**~~
~~**1,463,746**~~
Active Travel
Cerebra
67,145
-
Cycling UK
861,349
-
Foresight
-
44,073
Friends of Pedal Power
22,000
185,001
Get Cycling CIC
167,050
-
Sussex Community Development Association
37,941
-
Sustrans
193,565
-
The Back Up Trust
331,974
-
Whizz Kidz
196,154
-
~~**Active Travel**~~
~~**1,877,178**~~
~~**229,074**~~|
|---|---|
www.motabilityfoundation.org.uk **129**
Annual Report and Accounts 2023/24
Notes to the Financial Statements cont.
## Appendix 2 - Charitable Expenditure Recognised in Year cont.
||**Benefciary**
**2023/24**
**2022/23**
**£**
**£**
**Barriers to Driving**
Disability Action (NI)
212,903
-
Driving Mobility
693,181
-
~~**Barriers to Driving**~~
~~**906,084**~~
~~**-**~~
**Community Transport**
Arran Community & Voluntary Service
-
104,153
Autism Initiatives UK
165,867
-
Ayrshire Cancer Support
176,100
-
Badenoch & Strathspey Community ConneXions
-
134,372
Cambs Society for Blind & Partially-Sighted
-
51,254
Canolfan Maerdy
193,479
-
Community ConneXions
-
100,699
Community Equality Disability Action
-
100,635
Community Transport Glasgow
346,903
-
Compaid Trust
106,465
173,335
Comunn Eachdraidh Nis
1,000
104,965
Croydon Voluntary Association for the Blind
178,455
308,800
Daventry Area Community Transport
-
54,649
Dial a Ride Denbighshire
137,542
-
Down Armagh Rural Transport
-
235,115
Ealing Community Transport
144,927
-
Easilink Community Transport Ltd
-
2,300,977
East Hull Community Transport
180,505
172,410
Green Community Travel
157,615
64,160
Harwich Connexions Transport Co-Operative Ltd
250,100
-
Interloch Transport
60,073
53,384
North Holderness Community Transport
-
141,200
North Norfolk Community Transport
39,267
68,239
OPAL in partnership with AVSED
168,618
-
Pembrokeshire Association of Community
Transport Organisations
323,955
-
SERVE
-
396,467
Sheppey Matters
89,479
144,161
South Antrim Community Transport
517,019
-
South Denbighshire Community Partnership
158,229
-
South East Dorset Community Access Transport
-
100,100
Stockport Car Schemes
88,760
-
Voluntary Impact
-
144,307
Worcester Wheels
172,918
-
~~**Community Transport**~~
~~**3,657,276**~~
~~**4,953,382**~~
**Research**
Contact
92,344
-
Driving Mobility
85,500
-
Mental Health Innovations
105,750
-
Multiple Sclerosis Trust
61,310
-|
|---|---|
**130** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
## Appendix 2 - Charitable Expenditure Recognised in Year cont.
||**Benefciary**
**2023/24**
**2022/23**
**£**
**£**
Royal Mencap
84,650
-
Transport Research Foundation
291,822
-
University of Westminster
97,106
-
University of York
236,612
-
~~**Research**~~
~~**1,055,094**~~
~~**-**~~
**Travelling with Confdence**
Autism Bedfordshire
37,719
-
Community Council of Devon
106,916
-
ENABLE
-
330,519
Euan’s Guide
293,165
-
Leeds Older People’s Forum
247,220
-
My Life My Choice
77,608
-
Orchardville Society
115,500
-
Spinal Injuries Association
363,504
-
The Back Up Trust
220,056
-
Transport for All
309,964
-
~~**Travelling with Confdence**~~
~~**1,771,652**~~
~~**330,519**~~
**Wheelchairs**
Action for Kids
-
179,743
Aspire
120,120
-
Brittle Bone Society
100,000
100,000
Newlife
339,601
276,953
REMAP
-
76,562
Spinal Muscular Atrophy UK
238,500
-
Whizz Kidz
1,038,987
-
~~**Wheelchairs**~~
~~**1,837,208**~~
~~**633,258**~~
~~**Grants to Organisations -**~~
~~**Impact**~~
~~**[2023/24 - 54 Grants, 2022/23 - 27 Grants]**~~
~~**11,104,492**~~
~~**6,146,233**~~
~~**Total Grants to Organisations**~~
~~**[2023/24 - 79 Grants, 2022/23 - 46 Grants]**~~
~~**19,583,747**~~
~~**14,609,979**~~
~~**Grants to Individuals**~~
~~**[2023/24 - 20,734 Individuals,**~~
~~**2022/23 - 19,233 Individuals]**~~
~~**81,768,359**~~
~~**78,564,136**~~
~~**Total Grants Recognised within Charitable Expenditure in Year**~~
~~**101,352,106**~~
~~**93,174,115**~~|
|---|---|
www.motabilityfoundation.org.uk **131**
Annual Report and Accounts 2023/24
## Professional Advisers
## **Bankers**
**Barclays Bank PLC** 1 Churchill Place, London E14 5HP
**NatWest Bank PLC** 1 Princes Street, London EC2R 8BP
## Principal Fund Managers
**Aegon Asset Management Limited** 3 Lochside Crescent, Edinburgh EH12 9SA
**Allianz Global Investors** 199 Bishopsgate, London EC2M 3TY
## **Meridiem Investment Management**
Riverside House, 2a Southwark Bridge Road, London SE1 9HA
## **NatWest Markets Plc**
250 Bishopsgate, London EC2M 4AA
## **Barclays Private Bank**
**Solicitors Farrer & Co LLP** 66 Lincoln’s Inn Fields, London WC2A 3LH
**Memery Crystal Limited** 165 Fleet Street, London EC4A 2DY
1 Churchill Place, Canary Wharf, London E14 5HP
**Barings Limited** 20 Old Bailey, London EC4M 7AN
**TCI Fund Management Limited** 7 Clifford Street, London, W1S 2FT
## **BlackRock Investment (UK) Limited**
## **Whiskers LLP**
6 Mitre Buildings, Kitson Way, Harlow CM20 1DR
**External Auditors BDO LLP** 55 Baker Street, London W1U 7EU
**Internal Auditors Grant Thornton** 30 Finsbury Square, London EC2A 1AG
**Investment Advisers Lane Clark & Peacock LLP** 95 Wigmore Street, London W1U 1DQ
Drapers Gardens, 12 Throgmorton Avenue, London EC2N 2DL
**Egerton Capital (UK) LLP** Stratton House, 5 Stratton St, London W1J 8LA
**Indus Capital Partners, LLC** 1700 Broadway, Floor 39, New York NY 10019
**IFM Investors London** 2 London Wall, Barbican, London EC2Y 5AU
## **Lansdowne Partners**
15 Davies Street, Marylebone, London W1K 3AG
## **Wilshire Associates**
World Trade Center, Tower H, 25th Floor, Zuidplein 204, 1077 XV, Amsterdam, The Netherlands
**132** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
i
## Patrons, Governors, Members and Key Executive Employees 2023/24
## **Patrons**
The Rt Hon Boris Johnson The Rt Hon Theresa May MP The Rt Hon the Lord Cameron of Chipping Norton The Rt Hon Ed Miliband MP The Rt Hon Sir Iain Duncan Smith MP The Rt Hon Sir Tony Blair KG
## **Life President**
The Rt Hon the Lord Sterling of Plaistow GCVO CBE
## **Life Vice-President**
Brian Carte TD
**Governors Chair:** Charles Manby MBE **Vice Chair:** Ed Humpherson CB FCA **Hon Treasurer:** David Hunter FCA
Dr Hannah Barham-Brown FRSA Richard Cartwright ACA Sukhi Clark (retired 1 September 2023) Tony Davis Jackie Driver OBE (appointed 28 September 2023) Robin Hindle Fisher OBE Merlyn Lowther (appointed 28 September 2023) Dr Juliana Onwumere Professor William Webb
## **Members**
Sir Gerald Acher CBE LVO FCA Richard Bennison FCA Don Brereton CB Brian Carte TD Morigue Cornwell MBE Alan Dickinson
Dr Stephen Duckworth OBE Christopher E Fay CBE The Rt Hon the Lord Hague of Richmond Raymond King Joanna Lewis Edward Lester The Hon Sara Morrison Noel Muddiman CBE (retired 28 September 2023) Peter Oppenheimer** David Pritchard** (retired from Investment Committee June 2023) Professor Mala Rao OBE Dipankar Shewaram** (appointed 28 September 2023) The Lord Kevin Shinkwin Paul Spencer CBE The Rt Hon the Lord Sterling of Plaistow GCVO CBE Cheryl Ward
* All the existing Governors are also Members ** Independent Member of the Investment Committee
**Key Executive Employees Chief Executive Officer from March 2024:** Nigel Fletcher **Chief Executive Officer until March 2024:** Barry Le Grys MBE **Director of Finance:** Charles Nall ACA **Director of Charitable Operations:** Lisa Jones **Director of Performance and Innovation:** Rachael Badger **Chief Investment Officer:** Phillip Coates **Chief Communications Officer:** Sophie McGuirk-Cummings (appointed September 2023)
**134** www.motabilityfoundation.org.uk
Annual Report and Accounts 2023/24
Ill//
Il/ ••
## Motability, Warwick House, Roydon Road, Harlow, Essex CM19 5PX
Motability is a registered charity in England and Wales with charity number 299745 and in Scotland with charity number SC050642.
We are regulated by the Charity Commission and the Financial Conduct Authority. We are entered on the FCA register (www.fca.org.uk/register) under reference 736309.
Motability operating as Motability Foundation
**motabilityfoundation.org.uk**