annual report and accounts...this annual report looks at what motability and its service providers...

annual report and accounts

2012/13“

Motability Annual Report and Accounts 2012/13

Introduction

About Motability 01

Chairman’s Foreword 02

Governors’ Report

Governance 04

Report on Scheme Oversight 07

Giving Grants to our Customers 10

Report on Fundraising 12

Financial Review and Results 14

Accounts

Independent Auditor’s Report 16

Consolidated Statement of Financial Activities 17

Balance Sheets 19

Consolidated Cash Flow Statement 21

Notes to the Financial Statements 22

Thank You 38

Patrons, Governors and Members 41

Contents“

Motability Annual Report and Accounts 2012/13 01

The Motability Scheme enables disabled people to use their government-funded mobility allowances to lease a new car, scooter or powered wheelchair. This gives them the freedom to get to work or college, meet up with friends,enjoy a day trip out with their families, attend a medical appointment, or go shopping – in short, to enjoy the freedomand independence that so many of us take for granted.

Motability’s areas of responsibility include:

• We direct and oversee the Motability Scheme which comprises the Car Scheme and the Powered Wheelchairand Scooter Scheme.

• We administer the Government’s Specialised VehiclesFund, specifically to help people who need a wheelchairaccessible or heavily adapted vehicle.

• We also raise funds for our own Charitable Fund to provide financial help to those customers whose allowance does not cover the cost of the vehicle or the adaptations they need.

Currently over 620,000 people use and benefit from theMotability Scheme. Since the first cars were delivered in1978, we have provided over three and a half million cars, powered wheelchairs and scooters.

How the Motability Scheme works

Customers can use their Higher Rate Mobility Component of Disability Living Allowance (HRMC of DLA), the Enhanced Rate of the Mobility Component of Personal Independence Payment (ERMC of PIP), War Pensioners’ Mobility Supplement(WPMS) or Armed Forces Independence Payment (AFIP) to meet the cost of leasing a car, scooter or powered wheelchair. However, it is entirely up to the recipient whetherthey wish to spend their allowance joining the MotabilityScheme or in some other way. Around two-thirds of our customers drive, but those who do not can obtain a car as a passenger. Similarly, parents or carers can also apply on behalf of a child aged three and above.

The most popular option, chosen by over 95% of customers, is the lease of a car. Customers choose a new car every three years with insurance, road tax, servicing,tyres and breakdown cover all included. A wide range ofadaptations and Wheelchair Accessible Vehicles (WAVs) are also available. A similar scheme exists for people wishing to lease a scooter or powered wheelchair instead.

For customers who would otherwise be unable to afford thetype of vehicle or any adaptations that they need, Motabilitymay be able to offer financial help. This year, we awardedaround £18 million in grants from both the Government’sSpecialised Vehicles Fund and our own Charitable Fund.

Our service provider

The Scheme is operated for Motability on a contract basis by Motability Operations Group, a not-for-profit private company owned by the major banks: Barclays, Lloyds Banking Group, HSBC and Royal Bank of Scotland.

Public Benefit

This annual report looks at what Motability and its serviceproviders have achieved over the past year, measuring success against the stated aims for 2012/2013 and sets out the aims for 2013/2014. In reviewing the performanceand future aims, Governors have due regard for the guidancepublished by the Charities Commission on public benefit and have complied with Section 17 of the Charities Act 2011 in this respect.

About Motability

Motability is a national charity set up, with all-party parliamentary support, in 1977 and incorporated by Royal Charter. Its objective is to help disabled people with their personal mobility.

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02 Motability Annual Report and Accounts 2012/13

Despite the challenging economic climate, the Schememaintained its affordability and standards of service duringthe year. Motability continues to provide disabled people andtheir families with the benefits of independence and freedomthrough affordable, trouble-free motoring. The Scheme continued to offer a wide variety of vehicles within the valueof the mobility allowance and customer satisfaction levelsremained at very high levels. As a result, disabled peoplewho chose to join the Scheme continued to take advantageof the value and service that they can obtain in these difficult times and customer numbers using the Scheme increased slightly during the year.

Motability’s success depends on a unique structure of partnerships that dates from the inception of the Scheme.When the late Lord Goodman and I founded Motability in1977 it was, from day one, established with all-party supportand our very first Patrons were the late Jim Callaghan, PrimeMinister of the day, and the late Margaret Thatcher, thenLeader of the Opposition and a major supporter of our endeavours from that time right up to her recent illness.Today, the Prime Minister, David Cameron, the Leader of theOpposition, Ed Miliband, and the Deputy Prime Minister, NickClegg, are all Patrons of Motability. We also continue to benefitfrom the active interest of Her Majesty The Queen as ChiefPatron of the charity. During the year, we were saddened to learn of the death of Lord Morris, who had been such adogged campaigner on behalf of disabled people and a Patron of Motability over many years.

We have always enjoyed an excellent relationship with theDepartment for Work and Pensions (DWP) and the Departmentfor Transport, and we are grateful for their continued supportin these challenging economic times. As the year progressed,the DWP continued to consult on reform of Disability LivingAllowance (DLA) and the introduction of Personal Independence Payment (PIP). For more than 35 years, the availability of the mobility allowance from Government(most recently, the Higher Rate Mobility Component of DLA)has provided a sound financial basis for the Scheme and thislinkage remains key to the Scheme’s viability. We have maintained close contact with DWP officials and Ministers toensure that they understand the needs and priorities of ourcustomers. Following these discussions, the Scheme willwork with PIP in exactly the same way as it does with DLAtoday and will continue to play an important role, going forward, in supporting the mobility of disabled people.

Although many disability organisations, including Motability,acknowledge positive aspects of PIP compared to DLA in the longer term, in the short-term the transition will presentsome customers with major challenges. Motability is workingwith its Scheme partners to develop a one-off transitionalpackage of support and advice regarding alternative mobility arrangements to those disabled people who can no longeruse the Scheme as a result of being reassessed for PIP from October 2013 onwards.

Motability supports many hundreds of thousands of disabled people for whom an affordable new car provideslevels of freedom and independence that would otherwisebe beyond their reach. “

“The Rt Hon The Lord Sterling of Plaistow GCVO CBEChairman of Motability

Chairman’s Foreword“


I am pleased to report that Motability continued to deliverexcellent results from the Specialised Vehicles Fund, whichwe administer on behalf of the DWP. We handed over 388drive-from-wheelchair vehicles to customers in the year andprovided funding for a further 2,438 vehicles (mainly accessiblevehicles for wheelchair passengers). We appreciate the Government’s continued commitment to this fund which is crucial for many disabled people with the most complex requirements.

I am always grateful for the hard work and efforts of theBoard of Governors of Motability. I would like to emphasisemy thanks to our Vice-Chairman, Sir Gerald Acher, whochairs the Scheme Oversight Committee. I would also like to thank Richard Bennison, our Honorary Treasurer andChairman of the Audit, Risk and Governance Committee, and Professor Adrian Stokes, Chairman of the Funding andGrant-Making Committee.

This has been a particularly challenging year and I am grateful to our Director, Declan O’Mahony, and all of theMotability staff for their commitment and hard work. Wework in a seamless fashion with Motability Operations, whoseresponsibility is to deliver the Motability Scheme. Under theleadership of its Chairman, Neil Johnson and Chief Executive,Mike Betts, Motability Operations continues to deliver outstanding service to customers and maintains excellentrelationships with its shareholder banks, manufacturers,dealers and other key suppliers to the Scheme.

It is a privilege for us to be able to help so many of our disabledcustomers but, with that privilege, comes a responsibility toensure the Scheme remains strong and robust, to weather alleconomic cycles and to meet the mobility needs of disabledpeople for decades to come. We recognise this responsibilityand will continue to meet that challenge in the years ahead,as we have done for more than 35 years.

“When the late Lord Goodman and I founded Motabilityin 1977 it was, from day one, established with all-partysupport and our very first Patrons were the late Jim Callaghan, Prime Minister of the day, and the late Margaret Thatcher, then Leader of the Oppositionand a major supporter of our endeavours from thattime right up to her recent illness.

Lord Sterling

Lord Sterling and Baroness Thatcher at a presentation at Royal Hospital Chelsea to markMotability’s 30th anniversary celebrations in June 2008.

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Governors’ Report

The Governors present the audited Accounts for the year ended 31 March 2013 underthe Charities Act 2011, together with their summary report on governance, objectives and achievements.

The Accounts comply with the requirements of the Act, the Royal Charter and the Statement of Recommended Practice (SORP) 2005.

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Motability is a registered charity (No. 299745) incorporated by Royal Charter.

The Chief Patron, Patrons, Life Vice-Presidents, Members, the present Governors and any past Governors who servedduring the year are shown on page 41, together with detailsof the registered office and of the senior executive staff andprofessional advisers.

Structure, Governance and ManagementThe Charity is governed by its Royal Charter, granted on 18 May 1988.

Under Motability’s Royal Charter, Governors are appointedfrom the Membership. When a vacancy arises for a Governoror if the Board considers the need to appoint someone withspecialist knowledge, the Board will review the current Membership for candidates. If none possess the necessaryskill or experience, the Board would seek to recruit a newMember, whose appointment as a Governor would be put tothe AGM. One third of the Governors must retire each year andmay offer themselves for re-election. Governors meet at leastfive times per year. These meetings include four quarterly Board meetings and the AGM. New Governors receive an induction pack containing relevant information about the Charity and are briefed by the Executive Team.

The Board delegates responsibility for the implementation of policy and the reviews of performance to a number ofCommittees, as set out below. The Committees are required to meet prior to Board meetings and formally report tothem, so that recommendations for changes in strategy or policy can be authorised by the full Board.

Scheme Oversight Committee

The Scheme Oversight Committee comprises six Governors who have appropriate skills and experience in relation to the oversight of the Motability Scheme. TheCommittee is chaired by the Vice-Chairman, Sir Gerald Acher,and is responsible for reviewing the performance of both the Car and the Powered Wheelchair and Scooter Schemesagainst agreed key performance indicators. These indicatorsset out to monitor customer service levels, value for money, affordability and reliability of service. The Committee alsoleads the strategic development of the Motability Schemeand the consideration of operational and financial risks to ensure continuity of service to customers.

Audit, Risk and Governance Committee

The Audit, Risk and Governance Committee comprises four Governors who are independent of management andfree of any relationship that, in the opinion of the Board,would interfere with the exercise of independent judgementas members of the Committee. The Committee is chaired bythe Honorary Treasurer, Richard Bennison, and is responsiblefor the oversight of Risk Assessment, Risk Management and Internal Control. The Committee is also charged with reviewing the performance of both internal and externalaudit, and for making recommendations to the Board in respect of the appointment of external auditors. The Committee also advises the Board on the appropriate level of free reserves and any significant change in investment strategy.

Funding and Grant-Making Committee

The Funding and Grant-Making Committee comprises four Governors and is chaired by a Governor with disabilityexpertise, Professor Adrian Stokes. The Committee reviewsMotability’s fundraising and charitable grants policy and isalso responsible for advising the Department for Work andPensions (DWP) in respect of the policy applicable to thosefunds administered on their behalf. The Committee reviewsgrants funding issues and risks in view of the current economic climate.

Remuneration Committee

The Committee comprises four Governors and is chaired by the Vice-Chairman, Sir Gerald Acher. The primary purpose is to review the remuneration of the Director and seniormanagement and the staff pay and benefits strategy.

The Director

The Director is responsible for the day-to-day managementof the Charity’s affairs and the relationships with stakeholders,including the DWP and Motability Operations. The Director is supported by a senior management team to ensure theimplementation of policies agreed by the Governors.


Statement of Trustees’ Responsibilities and Corporate Governance

The Governors, as Trustees, are responsible for preparing theGovernors’ Report and the financial statements in accordancewith applicable law and United Kingdom Accounting Standards(United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requiresthe Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and the Group, and of the incomingresources and application of resources of the Charity for thatperiod. In preparing these financial statements, the Governorsconfirm that:

• suitable accounting policies have been selected and applied consistently.

• the methods and principles in the Charities SORP have been observed.

• judgements and estimates made are reasonable and prudent.

• applicable accounting standards have been followed.

• the financial statements are prepared on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.

The Governors are responsible for keeping proper accountingrecords that disclose with reasonable accuracy, at any time,the financial position of the Group and enable them to ensurethat the financial statements comply with the Charities Act2011 and the Charity (Accounts and Reports) Regulations2008. They are also responsible for safeguarding the assets of the Charity and, hence, for taking reasonable steps for theprevention and detection of fraud and other irregularities.

The Governors are responsible for the maintenance and integrity of the Charity and financial information included on the Charity’s website. Legislation in the United Kingdomgoverning the preparation and dissemination of financialstatements may differ from legislation in other jurisdictions.

The systems of internal control follow Charity CommissionGuidelines (CC8), designed to provide reasonable but not absolute assurance against material misstatement or loss.They include:

• a strategic plan and annual budget approved by the Governors.

• regular consideration by the Governors of financial results, variations from budget, non-financial performance indicators and benchmarking reviews.

• delegation of day-to-day management authority andsegregation of duties.

• identification and management of risks.

Environmental Responsibility and Sustainability

Motability’s direct environmental impact is mainly a function of the energy we use and the emissions and wastewe generate. In September 2010, we established the carbonfootprint arising from the operation of the offices at Harlowand agreed a plan to reduce carbon emissions by 10% overthe following two years. As at July 2012, we had delivered areduction of 28% and plan further initiatives, including a reduction in occupied space within the building.

In addition, Governors have regard to the environmental impact of the Car Scheme and have worked closely withMotability Operations to drive considerable reductions in the CO2 profile of the fleet.

Risk Management

A formal risk management process is used to assess business risks and implement risk management strategies.The Audit, Risk and Governance Committee examines the effectiveness of the systems of internal control in mitigatingrisks through reviews of the:

• reports arising from the implementation of the approved Internal Audit programme.

• nature and scope of the external audit and any matters raised by the external Auditor for the attention of management.

• risk register and actions taken to reduce the likelihoodand impact arising from risk scenarios.

• control reports specifically requested by the Committee.

The Committee has procedures for reporting failings immediately to the appropriate levels of management and to the Board, together with details of corrective actionbeing undertaken. In this respect, no issues were raised via the whistle blowing policy nor any health and safety concerns which required to be reported under the RIDDOR Regulations.


Employees

Motability is an organisation where employees continue to enjoy their work, feel valued and appreciated and fairly rewarded for the work they do. The results from our staffsurvey continue to improve year on year, and in many areas,outperform our benchmark (Charity Pulse). These results can be attributed to:

• Open and two-way communication between managers and staff, enabled by our 1-2-1 processes,feedback programmes and regular staff briefings.

• Investment in training and development, centred around Motability’s values, for all staff members.

Following an external review in May 2013, we have retainedour Investors in People accreditation. For the first time, wehave achieved Silver status, a level attained by only 3% ofcompanies that participate.

Our pay and benefits continue to be externally benchmarkedto ensure they remain competitive. We proactively encourage ourstaff to engage with us on benefits such as our pensionscheme, salary sacrifice schemes, retirement workshops forthe over 50’s and online pension planning tools.

Motability continues to pursue a policy of equality and diversity. Following assessment in 2012, we retained our ‘two ticks positive about disabled people’ accreditation, and the percentage of our workforce with a disability is 14%. Our challenge for 2013/14 is to broaden our reach to candidates with a disability through apprenticeship partnerships and community initiatives.

Staff turnover in 2012/13 was 5% (a reduction of 3.9% on 2011/12). The average number of days’ absence per employee was 5.1 days, compared to 6.2 days in 2011/12.

I love the fact that my work contributes,even in a small way, to the wellbeing andlives of thousands of disabled peopleand their families.“

“-Verbatim from 2013 Staff Survey


The Car SchemeAchievements during 2012/13

The Car Scheme continued to improve throughout the year in line with the aims set out in last year’s Annual Report and Accounts:

• Independent customer surveys demonstrated that satisfaction scores with the Scheme remained excellentand that loyalty remained very high.

• The Scheme’s offering remained strong, with over 2,000car models and variants available including a wide rangeof popular models and affordable automatics.

• Despite the continuing economic uncertainty, customernumbers increased by 2.3%, from 603,657 in March 2012to 617,800 in March 2013, with 73,613 customers joiningthe Scheme for the first time.

• The Scheme continued to work to improve its WAV offering, and saw a significant growth of 8.5%, bringingthe WAV fleet to a record level of 22,798 vehicles.

• We continued to support our customers in looking forgreener choices and took a proactive approach to managingour CO2 emissions, introducing a number of initiatives thatprovide information and choice for customers.

• We support new vehicle technologies and petrol / electrichybrids are available on the Scheme, providing additionaloptions for customers.

• The first pure electric vehicle, with zero emissions at thetailpipe, was introduced to the fleet and a process was established to ensure that customers could recharge theirvehicle safely and effectively.

• Average CO2 emissions for vehicles taken through theScheme continue to decline – falling from 136g/km inMarch 2012 to 134g/km by March 2013.

• Motability continued to broaden its awareness campaignworking with partners to ensure that all people eligible to join the Scheme can make an informed decision aboutdoing so. Leaflets were sent to all recipients of the HRMCof DLA, resulting in over 50,000 information pack requests.

• Targeted investment in the Motability Dealer Partnershipprogramme, designed to ensure customers receive a consistently high level of service, has delivered improvements that have led to a better customer experience at dealerships.

Scheme operational changes

Motability continues to monitor the Scheme offering, to ensure the proposition remains appropriate and that it continues to deliver value to its customers, consistent withthe Scheme’s core objectives. The last review led to a numberof changes which were implemented in January 2012 whichcollectively were designed to protect the integrity and reputation of the Scheme and clarify our policies on how cars are used and by whom. The changes included restrictingthe vehicles offered, increasing control over additional nominated drivers, and limiting the vehicles that young people can drive.

Experience during the year has shown that the vast majorityof customers (approximately 95%), have not been impactedby these changes. The changes are now operating effectively,and flexibility has been retained to ensure that customerswhose disability-related needs require something outsidethese guidelines are fully accommodated.

During the year a pilot was launched for new vehicle technologies to monitor how cars are used where we perceive the greatest risk of misuse.

Report on Scheme Oversight“Oversight of both the car and wheelchair schemes is carried out by a dedicated team at Motability, reporting tothe Scheme Oversight Committee which meets quarterly.This Report covers some of the most important changesand key performance indicators which we use to monitorand direct the Scheme.

““

Sir Gerald Acher CBE LVOChairman of the Scheme Oversight Committee


Performance during 2012/13Customer Satisfaction

We focus on providing customers with a seamless, worry-free experience; product choice and affordability are significant elements of this but meeting our customers’needs is about much more. We aim for excellent customerservice, which in our case clearly requires that we take particular steps to meet our customers’ disability related requirements.

The three headline measures of customer satisfaction fromthe most recent independent survey remained significantlyabove our Scheme objectives:

Customer Satisfaction Performance Indicators

Continuous Mobility and Lease Extensions

The availability of short-term lease extensions ensured nogaps occurred between vehicles for customers during the renewal process. Unexpected gaps caused by accident ortheft continued to average just one day, with customersquickly supported with courtesy cars or other arrangements.

Roadside Assistance

RAC attended over 180,000 incidents, meeting or exceedingtheir target response time in 11 out of 12 months. Extremewinter conditions in December temporarily affected RAC’sability to reach our customers within usual timescales.

Continuous Mobility Performance Indicators

Affordability and Value for Money

Contract Hire continued to offer excellent value for money for customers. Independent analysis indicates that the prices for the top 50 models on the Scheme were,on average, over 25% (over 40% including VAT/IPT relief)cheaper on a like-for-like basis, compared with a number ofother major leasing companies. Increases in the costs of UKmotor insurance and other input costs are, however, puttingconsiderable pressure on the affordability of our lease prices.The Scheme continues to work closely with suppliers to reduce costs and maintain affordability for customers.

Securing best value for de-fleeted vehicles is a key elementof maintaining affordability. Although the car market experienced difficult trading conditions, the relative shortageof three year old used cars strengthened disposal values. The Scheme continues to benefit from an established multi-channel disposal strategy which, in addition to a proactiveauction programme, includes the ‘mfldirect’ online trade disposal application. ‘mfldirect’ has grown steadily and nowover 65% of vehicles are sold by this channel. Just short of200,000 were sold during the year.

The customer offering remained strong, including offering400 variants from over 100 models, including automatics, at nil Advance Payment. Separate targets also continued to help ensure that the most affordable vehicles included a range of the most fuel efficient.

Affordability Performance Indicators

*Figures in parentheses indicate those with average-in-class MPG performance or better.

We review the Scheme Objectives each year with MotabilityOperations to ensure that they remain relevant and focussedon the most important elements of customers’ experiences.Objectives are set at high enough levels to ensure excellentcustomer service over the long term.

2011/12 2012/13 SchemeActual Actual Objective

Customers taking delivery of new car on same day as handing back old car 100% 100% 98%

Average number of days from incident to replacement car for thefts and write-offs 0.5 day 0.3 day 5 days

Roadside assistance –average response time 41 min 42 min 45 min


Number of modelsavailable with noAdvance Payment –automatics 31 [26]* 39 [30]* 8 [4]*

Number of models available with noAdvance Payment –manual 67 [60]* 73 [59]* 25 [16]*


Overall satisfaction with the Scheme 98% 98% 92%

Customers who would recommend the Scheme 97% 96% 92%

Customer’s intention to renew their leases 97% 96% 92%


The Powered Wheelchair and Scooter SchemeAchievements during 2012/13

This was Motability Operations’ second full year of operationof the Scheme and a review was undertaken to further improve the customer proposition to ensure first class valueand service.

• An independent survey of customer satisfaction with the new Motability Operations run scheme shows thatoverall satisfaction is high.

• The number of customers increased from 10,040 in March 2012 to 11,452 by March 2013, an increase of 1,412 or 14.1%.

• The Scheme continued to provide customers with a wide and representative choice of scooters or poweredwheelchairs, with stable pricing and excellent service.

Customer Satisfaction and Value for Money Performance Indicators

Risk ManagementThe Scheme is exposed to a number of risks, including theuncertain value of cars at the end of their three-year leases.The Scheme Oversight Committee monitors both Schemeperformance and these operational and financial risks on an ongoing basis. The Committee meets quarterly and comprises a number of Motability Governors, supported bysenior management of Motability and Motability Operations.This ensures that risks are identified and managed appropriately to ensure the provision of a continuous, responsive and affordable service to customers. EconomicCapital principles are used to determine and manage thecapital structure of the Scheme to ensure that the Schemeremains stable and sustainable through the economic cycle.

Countering Fraud and AbuseGreater clarity has been given to customers on acceptableuse of vehicles and a “Statement of Responsibilities” was introduced which has to be signed by the customer, all nominated drivers and the supplying dealer at the start of every lease. Motability works with a range of partners, including dealers, the DWP and Police to ensure that effectiveprocedures are in place to protect the Scheme and that werespond effectively to all allegations of Scheme misuse. Thisyear we dealt with 10,962 allegations relating to fraud orabuse of the Scheme, an increase from 8,960 in 2012. Theseincluded cases of uninsured driving, unauthorised use ofScheme cars, criminal activity and drink-driving, many ofwhich led to prosecution by the Police. Enforcement actionwas taken by Motability in 3,078 cases, resulting in 1,536customers’ agreements being terminated and their carswithdrawn, an increase from 1,103 in 2012.

Personal Independence PaymentAs part of its welfare reform programme the Government is replacing Disability Living Allowance with Personal Independence Payment for disabled people aged between16 and 64, beginning in April 2013 with the transitionscheduled to be completed in 2018. During the year, detailedplanning for the new benefit has been completed and a variety of significant changes to I.T. systems and processeshave been implemented to ensure operational compatibilityfrom launch. Because PIP is a new benefit with different criteria to DLA, some disabled people may not qualify formobility support under PIP or may do so at a lower level than they had under DLA and, as a consequence, they willno longer be eligible to use the Motability Scheme. Motabilityaims to provide a one-off transitional package of support andadvice regarding alternative mobility arrangements to thosedisabled people who can no longer use the Scheme as a result of being reassessed for PIP. The latest details about PIPare available on the Motability website.


Overall satisfaction with the Scheme 95% 95% 92%

Number of small scooters available for less than 35% of the mobility allowance 45 40 30

Number of medium scooters available for less than 45% of the mobility allowance 19 33 15

Number of large scooters available for less than 50% of the mobility allowance 16 24 5

Aims for 2013/14

• Maintain the Schemes’ excellent customer satisfaction performance.

• Maintain a close working relationship with the DWPduring the implementation phase of the Government’sprogramme of benefit reforms.

• Work with Scheme partners to provide a transitionpackage of support and advice to disabled peoplewho can no longer use the Scheme as a result ofbeing reassessed for PIP.

• Maintain price stability and the Scheme’s financialhealth in an uncertain economic climate.

• Continue to monitor and develop policies and processesto protect the integrity and reputation of the Scheme.


Giving Grants to our Customers“We are the major providers of help to disabled people aged three and above in the UK whoneed financial help towards mobility solutions under the Scheme. Support from Motability canmean a world of difference to our beneficiaries and their families; some of whom will have beencompletely housebound before finding a new lease of life following a grant from Motability.

Achievements during 2012/13• We continued to measure customer satisfaction, with

surveys conducted independently each quarter. The resultswere consistently high, between 95-96%, strengthened byprompt decision-making and waiting times at their all-timelowest, an efficient and friendly telephone service, and aflexible approach to grant-provision through providing customers with the maximum possible choice within the value of the grant available.

Overall satisfaction with the service received from Grants Operations

Apr-Jun12 Jul-Sep12 Oct-Dec12 Jan-Mar13 Objective

95% 96% 95% 96% 85%

• We delivered 388 drive-from-wheelchair and InternalTransfer vehicles to customers, versus 427 for 2011/12,each tailored to individual needs. A raft of improvementsover the year has seen vehicles delivered to customersfaster than ever before and work with our partner AA/BSMhas ensured that, when needed, professional driving tuition is available at the point of vehicle handover,thereby improving confidence and safety.

• Application processing times improved consistentlythroughout the year to attain their best-ever levels; with decision times ranging from one day for driving tuition, just over a week for a grant towards a car’s Advance Payment, and two weeks for help towards the cost of a WAV.

• The number of inbound customer calls were reduced by18% compared with 2011/12 (or almost 13,000 fewercalls across the year), due to improved information andprocessing speeds. The Interactive Voice Response (IVR)system was also streamlined making it simpler and fasterfor a caller to reach the right person for their enquiry.

• Grants Operations strengthened links with the UK Forum of Assessment Centres, including working togetherto support other organisations such as the Spinal InjuriesAssociation (SIA) to raise awareness through a series ofMobility Master-classes scheduled for next year.

• The Application for Financial Help form was reviewed, resulting in a new form, with a clearer presentation andstructure, making it easier for customers to complete. In response, our customers gave successively increasingsatisfaction scores over the last two quarters of the financial year.

Operational performance during 2012/13

We handled 10,169 application enquiries versus 9,122 in2011/12, with 6,341 grants offered across all funds, a reductionof 7% on last year’s 6,835. However, that reduction was largelyoffset by the provision of 872 long-term lease extensionsagainst 468 in 2011/12, enabling customers to continue for afurther two years with their current vehicles and adaptations,in turn helping the available funding to meet demand.

We introduced new measures to identify cost savings across grants, including systems to recycle unused grant allowances and spending analysis in adaptation and dealeroption expenditure.

Charitable Grants

Charitable grants are funded through a combination ofMotability’s own fundraising activities and ongoing supportof the Motability Tenth Anniversary Trust.

2,562 grants (2,567 in 2011/12) were awarded to customersand their families needing help with standard production vehicles and/or adaptations, such as medium and largeMulti-Purpose Vehicles (MPVs), solutions well suited to thoseneeding higher access seating and/or sufficient space tostore disability equipment.

641 young learners received grants for driving lessons versus 626 in 2011/12, with half of applicants in recentmonths receiving an immediate decision over the phone and avoiding the need for any form-filling. With the help of a grant from Motability, 236 students passed their practicaldriving tests during the financial year and many others continue to study towards one.

Despite the consistently high numbers of grants provided, effective management and structuring of the charitablebudget, in addition to savings of £401,000 as a result oflease extensions saw expenditure total £1.8 million (£1.9 million in 2011/12).

Government Grants – Specialised Vehicles Fund

Motability administers the Specialised Vehicles Fund (SVF) on behalf of the Government for people requiring WheelchairAccessible Vehicles, drive from wheelchair or internal transfer solutions and associated complex adaptations. TheGovernment provided £17 million during 2012/13 to supportthe fund and, despite the pressures on public expenditure,have agreed to maintain funding at this level for 2013/14.


Aims for 2013/14

• Maintain the high levels of customer satisfaction with our service.

• Administer the Government’s Specialised VehicleFund to deliver a minimum of 350 drive from wheelchair/internal transfer vehicles and many more Wheelchair Accessible Vehicles (WAVs).

• Administer the Motability Charitable Fund within a maximum net budget of £2.4 million.

• Incorporate the Government’s welfare reformchanges into our means-testing framework to continue to use the available funding to best effect.

• Continue to refine operational efficiency, for example, through our on-going staff training and telephony strategies.

My Motability car has given me freedom. I no longer haveto rely on public transport to get to the doctors. Previously I had to find taxi firms withwheelchair accessible vehiclesor ensure the bus I needed toget had a ramp.

Rodney received a Government grant to help fund his drive from wheelchair vehicle.

““

Passenger Vehicles:

With the benefit of highly affordable Advance Payments for WAVs across the Scheme, Motability has been able tofocus help on those in greatest need or requiring more complex solutions.

Grants were provided for 1,979 WAVs versus 2,122 in2011/12 plus a further 458 to those requiring more complexadaptations, such as powered wheelchair hoists or swivelseats, versus 540 in 2011/12. The Fund also benefitted from416 lease extensions, saving £1.7m.

Driver Vehicles:

A total of 388 vehicles were completed for customers versus427 in 2011/12, with 364 new grants awarded. The averagetime elapsing between application and vehicle delivery inthese complex projects reduced by 11 weeks throughout the year. The Fund also benefitted from 67 lease extensions, saving £1.9m.

Mobility Assessment Field Team

Our Mobility Driving Assessors are qualified to Advanced Driving Instructor (ADI) standard and provide detailed assessments at customers’ homes, to understand their complex mobility needs and arrive at a solution which Motability often go on to fund. Of 960 referrals in the year, the team completed 914 physical assessments versus 782 in 2011/12.


Report on Fundraising “Motability’s charitable work relies on voluntary income and this year our income increasedby over 9%, raising £2.73 million (£2.5 million last year) to support the provision of CharitableGrants to our customers.

The money we raise is spent on vehicle adaptations, Advance Payments for vehicles anddriving lessons for young disabled people.

Performance during 2012/13Motability’s fundraising activities have delivered a very strong performance during 2012/13, providing steady and sustainable income from a variety of sources to help provide Charitable Grants for Motability customers. We have experienced good growth across the majority of our income streams this year.

Individual Giving

Thanks to the generosity of our supporters we raised a total of over £1.67 million from raffles, appeals, regular gifts and Gift Aid. Our seasonal raffle campaigns remain verypopular and this year successfully raised almost £1 million.

We have continued to invest in our programme to encourage customers to support Motability by making a regular gift by Direct Debit. We achieved great success with this during the year, exceeding the forecast of 1,200 and recruiting a total of 1,936 new donors. Almost 8,000 supporters now make regular gifts to Motability and, through their generosity, we received donations totalling over £457,000.

Successful promotion of the Gift Aid Scheme has resulted in additional income of over £81,000 and almost 50% of our regular givers have now signed a Gift Aid declaration.

A particular highlight amongst our busy fundraising programme was our popular Christmas Appeal which encouraged 5,719 supporters to make donations and raised over £80,000.

Charitable Trusts and Foundations

We would like to thank all the trusts and foundations who have supported us during 2012/13 and raised £293,638, exceeding last year’s income by over £50,000.This support included £14,500 for a new assessment vehicle, enabling us to purchase a new Mercedes Sprinter with a range of adaptations fitted.

We are particularly grateful to John James Bristol Foundation, Talbot Village Trust, The Peter Harrison Foundation and The Zochonis Charitable Trust – all of whom made a large donation of £10,000 or more.

A full list of all the trusts and foundations who supported us during the year is detailed on page 39.

Now we have a reliable car we are able to visit Cory’sgrandparents which is a nicebreak away for us both.

Mum, Joanne and son Cory with their adapted vehicle.

Motability was able to help pay towards adaptations from its Charitable Fund.

““


Corporate Support and Events

In a tough economic climate we are pleased that we have maintained the level of income from our corporate supporters. Fundraising activities that have taken place include employee fundraising events and donations, with a total income of £233,204, received.

Of this total, £116,000 was raised from employee fundraising and corporate donations, an increase of £10,000from 2011/12, and £117,000 was raised from our eventsprogramme, which was a slight decrease on last year.

Legacies

We are extremely grateful for the gifts that we have receivedfrom legacies and in memoriam. Throughout 2012/13 legacydonations totalled an unprecedented amount of £144,630.We will continue to build on this success next year, developinga new legacy strategy and supporting materials.

Trading

In accordance with our aims for the year, we have seen exceptional growth in our trading and affinity insurance programmes. We raised £365,000 in commission from sales of these products, representing a 50% increase on last year.

In particular, the success of Motability Home Insurance supports our aim to raise a total of £1 million from sales,since its launch in 2009, by Autumn 2013.

This year, together with RSA, we submitted an entry for our Home Insurance into the Third Sector Business CharityAwards for the Affinity Marketing Award. Now in their fourthyear, the awards recognise the outstanding contributionmade by UK businesses to charities. We are proud to reportthat RSA and Motability won the award and appreciate therecognition it brings to our remarkable partnership with RSA, which has gone from strength to strength in recent years.

Our Motability car has been our lifeline. Having a small child and the physical disabilitiesI have the car allows me to keep some independence.

Lesley and Craig with their adapted vehicle.

Motability was able to help pay towards the Advance Payment and adaptations from its Charitable Fund

““

Aims for 2013/14

• Aim to raise £2.7m gross income

• Focus on developing existing fundraising contracts,with particular attention on Affinity Insurance Products and Motability’s National Raffles.

• Continue to invest in our customer Regular Giving strategy. Aim to recruit up to 1,800 new supporters.

• Against a tough economic climate, maintain incomefrom corporate activity and Charitable Trusts.


Financial HighlightsIncoming Resources

Income increased by £1,184,000 to £28,893,000 principally as a result of the increased grant commitment on behalf of the DWP’s Specialised Vehicle Fund. The DWP grant for administration costs remained frozen at £1m. The main funding for the remainder of the running costs continued tobe from a lease levy applied to each car lease in MotabilityOperations which was £30 per lease (£30 in 2012).

Fundraising

The results from fundraising activities which are used to support charitable grant making are included within IncomingResources from Generated Funds which increased by £283,000to £3,971,000 in the year. This reflects a successful year wherethe income forecasts were exceeded despite the continuingdifficult economic climate.

Resources Expended

Overall, grant awards increased by £547,000 (£1,336,000 decrease in 2012). The level of charitable grants expendituredecreased by £149,000 due to a one-off reduction following a review of driving lesson grants outstanding with customers.Government grant expenditure increased by £696,000(£946,000 decrease in 2012) mainly due to a 17% increase in demand for wheelchair accessible vehicle grants and a re-assessment of qualifying criteria for drive from wheelchair vehicles.

Administration costs increased by £1,256,000 to £6,814,000(£671,000 decrease in 2012 to £5,558,000). The majority ofthe increase was due to the one-off effect of closing the defined benefit scheme to future accrual from 30 April 2012,which resulted in an actuarial gain of £510,000 recognised in2011/12. The remainder of the cost increase reflects additionalheadcount in the Scheme protection and oversight teams toaddress Scheme changes and also in the communicationsteam, to support a broad programme of communications tocustomers, disability organisations and other stakeholders, in view of the introduction of PIP.

Fund Balances

Balances increased by £404,000 to £4,626,000 (£450,000 decrease in 2012), primarily as a result of increased fundraising and trust income in relation to charitable grantcommitments and an increase in the funds carried forward in agreement with the DWP, mostly offset by recognising apension scheme actuarial loss of £1,798,000 (loss of£3,251,000 in 2012). As a result, unrestricted funds increasedby £904,000 (£459,000 increase in 2012) and restricted fundsdecreased by £500,000 (£909,000 decrease in 2012).

Investment Policy and Objectives

The Board aims to maximise the total investment returnwithin the objectives of maintaining income and to maximiseincome on short-term invested restricted funds. In order tominimise risk, funds continue to be diversified across threemajor UK banks.

Pensions

Motability operates a funded defined benefit scheme for staffwho joined before 1 July 2005. The last actuarial valuationwas carried out at 31 March 2010 and showed the marketvalue of the assets of the scheme to be £9,806,000 and thepresent value of the liabilities £12,975,000 resulting in an actuarial deficit of £3,169,000 at that date. Following consultation with scheme members, a decision was taken in October 2011 to close the scheme to future accrual whichtook effect from 30 April 2012.

Note 18 details the annually calculated notional valuationunder FRS17. The deficit has increased from £5,057,000 (at 31 March 2012) to £6,527,000 (at 31 March 2013) primarily as a result of the fall in discount rate compared to the previous year.

Motability also operates a defined contribution scheme for new staff joining after 1 July 2005 and for those staff who were members of the defined benefit scheme at 30 April 2012.

Financial Review and Results

The Statement of Financial Activities (SoFA) set out on page 17 is designed to reflect all incoming resources receivable in the year, irrespective of when income is spent.


Reserves PolicyRestricted reserves

Restricted reserves represent unspent donations which are to be applied for specific purposes as required by the donor,the net book value of Fixed Assets, future administration costsand funds carried forward to future years by agreement withthe DWP.

Government grants to disabled people are provided within the agreed annual funding limits. However, cash expenditureis affected by the vehicle and adaptation lead time and as aresult, £859,000 of the annual grant was unspent at year endand has been carried over to 2014, with the agreement of the DWP.

Unrestricted reserves

Unrestricted reserves are held to ensure that Motability canmaintain the current level of grant commitments should therebe a temporary reduction in income.

The policy is to ensure that there are two months’ reserves at any time to pay current levels of grant commitments. Thepolicy has been reviewed annually by the Board and is basedupon an evaluation of the risks associated with fundraising income from individual donations and corporate sponsorship,caused by the impact of the current economic climate.

In view of the plan to reduce office space and to re-invest inmodern air conditioning and lighting systems, the Governorshave designated £1m from unrestricted reserves towards thecost of this project, with the remaining £1.5m funded. Takingthis into account, free reserves are reduced to £826,000(£922,000 in 2012). This represents 6 months’ charitable expenditure during the year (2012: 6 months). The reservehas been maintained to reflect the current continuing rise indemand for charitable grants and the intention to providegreater opportunities for customers to access grants for driving lessons currently restricted to the 16 to 24 age group.

Going ConcernThe financial plans of Motability, covering the period of notless than twelve months from the date of signing the financialstatements, have been reviewed in detail, in particular the approved annual budget, the commitment from Governmentin respect of Grants receivable, the value of the future leaselevy and the level of reserves. On this basis, we believe thatthe going concern assumption continues to be appropriateand that Motability has a sound financial basis upon which to build for the future.

Future Plans and the Year AheadMotability’s plans for the future are based around our key areas of responsibility set out on page 1, taking into accountour current performance, feedback from our customers andan assessment of the risks which we face.

We direct and oversee the Motability Scheme

The Scheme Oversight Committee reviews the performanceand principal risks faced by the Motability Scheme which areset out on pages 7-9. In the coming year, we will continue towork closely with DWP officials and Ministers to ensure the reform of DLA and the introduction of Personal IndependencePayment (PIP) is managed to minimise concern and disruptionfor our Scheme customers.

We administer the Government’s Specialised Vehicle Fund

With the funding for these specialised vehicles frozen for2013/14 we plan to manage customer demand through thearrangement of long-term lease extensions and continue toidentify and leverage cost-saving opportunities on AdvancePayments, adaptations and dealer options.

We raise funds for our own Charitable Fund

The current recession has impacted upon our ability to develop new corporate support and income from trusts. As a result of this we face the risk that we may not meet the anticipated increase in charitable grant demand. However, the review of the fundraising strategy undertaken in 2009 anticipated this and we changed the focus of our fundraising;concentrating on developing sustainable income streamswhich will provide a solid foundation for the future. We willcontinue to invest in our Regular Giving campaigns by DirectDebit through 2013/14 in addition to further development of our Insurance Affinity Programmes.

SummaryIn these challenging times for our customers, Motability will continue to offer affordable mobility and excellent servicethrough the Motability Scheme, with financial help availableto those most in need from our fundraising activities and theGovernment’s Specialised Vehicles Fund.

Auditor A resolution to re-appoint Deloitte LLP will be proposed at theforthcoming Annual General Meeting.

By order of the Board

The Lord Sterling of Plaistow GCVO CBEChairman6 August 2013


This report is made solely to the Charity’s Trustees, as abody, in accordance with section 144 of the Charities Act2011 and regulations made under section 154 of that Act.Our audit work has been undertaken so that we might stateto the Charity’s Trustees those matters we are required tostate to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do notaccept or assume responsibility to anyone other than theCharity and the Charity’s Trustees as a body, for our auditwork, for this report, or for the opinions we have formed.

Respective responsibilities of Trustees and Auditor

As explained more fully in the Trustees’ ResponsibilitiesStatement, the Governors, as trustees, are responsible forthe preparation of the financial statements which give a true and fair view.

We have been appointed as auditor under section 144 of theCharities Act 2011 and report in accordance with regulationsmade under section 154 of that Act. Our responsibility is toaudit and express an opinion on the financial statements inaccordance with applicable law and International Standardson Auditing (UK and Ireland). Those standards require us tocomply with the Auditing Practices Board’s Ethical Standardsfor Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to givereasonable assurance that the financial statements are freefrom material misstatement, whether caused by fraud orerror. This includes an assessment of: whether the accountingpolicies are appropriate to the group’s and the parent charity’scircumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overallpresentation of the financial statements. In addition, we readall the financial and non-financial information in the annualreport to identify material inconsistencies with the audited financial statements. If we become aware of any apparentmaterial misstatements or inconsistencies we consider theimplications for our report.

Opinion on financial statements

In our opinion the financial statements:

• give a true and fair view of the state of the group’s and the parent charity’s affairs as at 31 March 2013, and of its incoming resources and application of resources, for the year then ended;

• have been properly prepared in accordance with the UnitedKingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011 and the Royal Charter.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matterswhere the Charities Act 2011 requires us to report to you if, in our opinion:

• the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or

• sufficient 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 explanationswe require for our audit.

Deloitte LLPChartered Accountants and Statutory AuditorCambridgeDeloitte LLP is eligible to act as an auditor in terms of Section1212 of the Companies Act 2006 and consequently to act asthe auditor of a registered charity. 12 August 2013

We have audited the financial statements of Motability for the year ended 31 March 2013 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity BalanceSheets, the Consolidated Cash Flow Statement, the Statement of Accounting Policies and the relatednotes numbered 1 to 22. The financial reporting framework that has been applied in their preparationis applicable law and United Kingdom Accounting Standards (United Kingdom Generally AcceptedAccounting Practice).

Independent Auditor’s Report to the Governors of Motability


The Group has no recognised gains or losses other than those shown in the Consolidated SoFA, and accordingly no statementof total recognised gains and losses is presented.

The notes on pages 22 to 37 form an integral part of the financial statements.

All the Group’s activities in this and the prior period were continuing.

Unrestricted Restricted Total TotalFunds Funds 2013 2012

Note £’000 £’000 £’000 £’000

Incoming ResourcesVoluntary Income 1,990 317 2,307 2,126

Activities for Generating Funds 1,426 - 1,426 1,406

Investment Income 44 194 238 156

Incoming Resources from Generated Funds 3 3,460 511 3,971 3,688DWP Grants Receivable 4 – 18,387 18,387 16,984

Lease Levy Income – 6,535 6,535 7,037

Incoming Resources from Charitable Activities – 24,922 24,922 24,021 Total Incoming Resources 3,460 25,433 28,893 27,709

Resources ExpendedCost of Generating Voluntary Income 660 26 686 656

Fundraising Trading: Cost of Goods Sold and Other Costs 460 – 460 510

Cost of Generating Funds 6 1,120 26 1,146 1,166

Motability Funded Grant-Making 5 1,436 1,778 3,214 3,055

DWP Funded Grant-Making 4 – 19,186 19,186 18,104

Scheme Operations/Communications 6 – 2,768 2,768 2,228

Cost of Charitable Activities 1,436 23,732 25,168 23,387 Governance Costs 6 – 377 377 355 Total Resources Expended 6, 7 2,556 24,135 26,691 24,908

Net Incoming Resources before otherrecognised gains and losses 904 1,298 2,202 2,801

Other recognised gains and lossesActuarial losses on defined benefit scheme 18.5 – (1,798) (1,798) (3,251)

Net Movement in Funds 904 (500) 404 (450)

Fund Balances brought forward 1 April 922 3,300 4,222 4,672

Fund Balances carried forward 31 March 1,826 2,800 4,626 4,222

Consolidated Statement of Financial Activitiesfor the year ended 31 March 2013


The analysis by activity shows the relationship between the sources of income and resources expended.

Motability grants made to disabled people are funded by voluntary income, generated income and investment income after deducting the cost of generating funds.

Government grants made to disabled people are funded by DWP grants receivable.

Administration and support costs are funded by DWP grants receivable, lease levy, investment income and voluntary income that has been restricted by the donor for use on administration and support costs.

Motability GovernmentGrants to Grants to AdminDisabled Disabled and Total TotalPeople People Support 2013 2012£’000 £’000 £’000 £’000 £’000

Incoming ResourcesVoluntary Income 2,307 – – 2,307 2,126

Activities for Generating Funds 1,426 – – 1,426 1,406

Investment Income 44 – 194 238 156

Incoming Resources from Generated Funds 3,777 – 194 3,971 3,688 DWP Grants Receivable – 17,387 1,000 18,387 16,984

Lease Levy Income – – 6,535 6,535 7,037

Incoming Resources from Charitable Activities – 17,387 7,535 24,922 24,021 Total Incoming Resources 3,777 17,387 7,729 28,893 27,709

Resources ExpendedCost of Generating Voluntary Income 686 – – 686 656

Fundraising Trading: Cost of Goods Sold and Other Costs 460 – – 460 510

Cost of Generating Funds 1,146 – – 1,146 1,166

Motability Funded Grant-Making 1,754 – 1,460 3,214 3,055

DWP Funded Grant-Making – 16,977 2,209 19,186 18,104

Scheme Operations/Communications – – 2,768 2,768 2,228

Cost of Charitable Activities 1,754 16,977 6,437 25,168 23,387 Governance Costs – – 377 377 355 Total Resources Expended 2,900 16,977 6,814 26,691 24,908

Net Incoming Resources before otherrecognised gains and losses 877 410 915 2,202 2,801

Other recognised gains and lossesActuarial losses on defined benefit scheme – – (1,798) (1,798) (3,251)

Net Movement in Funds 877 410 (883) 404 (450)

Fund Balances brought forward 1 April 949 473 2,800 4,222 4,672

Fund Balances carried forward 31 March 1,826 883 1,917 4,626 4,222

Consolidated Statement of Financial Activitiesby Activity for the year ended 31 March 2013


The financial statements on pages 17 to 37 were approved by the Board of Governors on 6 August 2013 and were signed on its behalf by:

The Lord Sterling of Plaistow GCVO CBE, ChairmanRichard Bennison, Hon. Treasurer

Group Charity

2013 2012 2013 2012Note £’000 £’000 £’000 £’000

Fixed Assets 10 389 325 389 325

Current AssetsDebtors 11 6,474 6,427 6,797 6,861

Short-Term Deposits 12 7,000 7,500 7,000 7,500

Cash 12 4,863 2,579 4,512 2,117

18,337 16,506 18,309 16,478Creditors: amounts falling due within one year 13 (7,493) (7,465) (7,479) (7,451)

Net Current Assets 10,844 9,041 10,830 9,027Total Assets less Current Liabilities 11,233 9,366 11,219 9,352Creditors: amounts falling due after one year 14 (80) (87) (80) (87)

Net Assets excluding pension liability 15 11,153 9,279 11,139 9,265Pension Liability 18.1 (6,527) (5,057) (6,527) (5,057)

Net Assets including pension liability 4,626 4,222 4,612 4,208

Represented by:Restricted Funds

Balance before Pension Deficit 16 9,327 8,357 9,327 8,357

Pension Deficit 16, 18.2 (6,527) (5,057) (6,527) (5,057)

Total Restricted Funds 2,800 3,300 2,800 3,300Unrestricted Funds 17 1,826 922 1,812 908

Total Funds 4,626 4,222 4,612 4,208

Balance Sheetsat 31 March 2013



The analysis shows the balances which relate to each of Motability’s primary activities.

Motability grants made to disabled people are supported by a reserves policy which aims to hold two months of charitablegrants in reserves.

Government grants to disabled people are provided within the agreed annual funding limits. However, cash expenditure is affected by the vehicle and adaptation lead time and as a result, £859,000 of the annual grant was unspent at year end andhas been carried over to 2014, with the agreement of the DWP.

Motability GovernmentGrants to Grants to AdminDisabled Disabled and Total TotalPeople People Support 2013 2012£’000 £’000 £’000 £’000 £’000

Fixed Assets – – 389 389 325

Current AssetsDebtors 127 4,987 1,360 6,474 6,427

Short-Term Deposits 1,000 – 6,000 7,000 7,500

Cash 2,207 878 1,778 4,863 2,579

3,334 5,865 9,138 18,337 16,506 Creditors: amounts falling due within one year (1,508) (4,982) (1,003) (7,493) (7,465)

Net Current Assets 1,826 883 8,135 10,844 9,041Total Assets less Current Liabilities 1,826 883 8,524 11,233 9,366Creditors: amounts falling due after one year – – (80) (80) (87)

Net Assets excluding pension liability 1,826 883 8,444 11,153 9,279 Pension Liability – – (6,527) (6,527) (5,057)

Net Assets including pension liability 1,826 883 1,917 4,626 4,222

Represented by:Restricted Funds

Balance before Pension Deficit – 883 8,444 9,327 8,357

Pension Deficit – – (6,527) (6,527) (5,057)

– 883 1,917 2,800 3,300

Unrestricted Funds 1,826 – – 1,826 922

Total Funds 1,826 883 1,917 4,626 4,222

Group Balance Sheet by Activity at 31 March 2013



Analysis of Net Funds

Note 2013 2012£’000 £’000

Net cash inflow from operating activities 21 1,778 1,381

Returns on investments and servicing of financeInterest receivable 238 156

Net cash inflow from returns on investments and servicing of finance 238 156

Capital expenditure Purchase of tangible fixed assets 10 (232) (251)

Proceeds from sale of tangible fixed assets – 27

Net cash outflow from capital expenditure (232) (224)

Cash inflow before management of liquid resources 1,784 1,313

Management of liquid resourcesDecrease/(Increase) in short-term deposits 500 (1,500)

Increase/(Decrease) in cash 2,284 (187)

Reconciliation of net cash flow to 2013 2012movement in net funds £’000 £’000

Increase/(Decrease) in cash 2,284 (187)

Cash (outflow)/inflow from liquid resources (500) 1,500

Movement in net cash in the year arising from cash flows 1,784 1,313

Net funds at 1 April 10,079 8,766

Net funds at 31 March 11,863 10,079

Cash2012 Flow 2013£’000 £’000 £’000

Short-Term deposits (note 12) 7,500 (500) 7,000

Cash (note 12) 2,579 2,284 4,863

Net funds 10,079 1,784 11,863

Consolidated Cash Flow Statement for the year ended 31 March 2013


Notes to the Financial Statements

1 Accounting policiesConsolidation

The financial statements of the wholly-owned subsidiary,Motability Enterprises Limited, have been consolidated withthose of the Charity on a line-by-line basis. The principal activity of Motability Enterprises Limited during the year wasthe raising of funds for the Charity.

Basis of Accounting

The financial statements have been prepared under the historic cost convention on a going concern basis, as notedon page 15 of the Governors’ Report in accordance with theStatement of Recommended Practice 2005 issued by theCharity Commission and applicable accounting standards inthe United Kingdom and in compliance with the Charities Act2011. A summary of accounting policies consistently appliedis set out below:

a) Incoming Resources

Income is accounted for on the basis of entitlement, certainty of receipt and measurability.

Incoming resources from generated funds are recorded on a receivable basis and support from the Motability Tenth Anniversary Trust is recorded on a cash received basis.

DWP grants receivable for grants to disabled people are accrued to match the expenditure up to the level which has been agreed for future spending with the DWP. Grant income in relation to support and administration costs is received from Government and recognised when receivable.

Administration and support costs, net of the DWP contribution, are covered by a levy on Motability Operations’ leases to customers. Cash is received as a single payment at lease inception and income is recognised on a receivable basis.

b) Resources Expended

Grants to disabled people are recognised when they have been approved, to the extent that a legal or constructive obligation exists to provide the services agreed.

Grant expenditure on driving lessons is based upon the higher of the actual number of lessons taken during the year or the average number of lessons which customers take to complete their instruction.

The ‘Cost of Generating Funds’ comprises costs directly attributable to activities for generating funds such as the administration of the national raffles and the running of fundraising events together with fundraising expenses.

The ‘Cost of Charitable Activities’ includes central overheads which are apportioned to operational and grant making functions.

Governance costs include audit fees, legal advice for Governors relating to the financial management of the Charity and compliance with constitutional and statutory requirements.

All non directly attributable support costs are allocated to resources expended on a headcount basis.

c) Fixed Assets

Assets are included on the balance sheet at cumulative historic cost less depreciation and any impairments in accordance with FRS 15. An annual review of all assets is undertaken to ascertain any impairments. Expenditure on fixed assets is capitalised, where individual items cost £500 or more, in the year of acquisition and depreciation is charged annually. Fixed assets are depreciated on a straight-line basis over their anticipated useful lives as follows:

Fixtures and fittings: Five years

Computer hardware and software: Three years

Vehicles: Two to three years


d) Fund Accounting

Unrestricted funds comprise the accumulated movement on funds available for use at the absolute discretion of theGovernors. Any transfer between funds requires the approval of the Audit, Risk and Governance Committee. Designated funds represent unrestricted funds which the Governors have ring-fenced in support of the partial funding of the project to upgrade office space.

Restricted funds are funds subject to specific restrictions imposed by the donor; mainly government departments providing funds for the purpose of grant making and supporting Motability’s administration and support costs.

e) Pension Costs

The Charity operates a defined benefit pension scheme for certain employees. The amounts charged in resources expended are the current service costs with gains and losses on settlements and curtailments included as part of staff costs. Vested past service costs are recognised immediately in the SoFA. The interest cost and the expected return on assets are charged to net finance charges within support costs. Actuarial gains and losses are recognised immediately as ‘FRS 17 Actuarial Gains/Losses’.

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 attained agemethod 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, net of the related deferred tax, 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.

f) Leases

Leases are classified as finance leases if they transfer substantially all the risks and rewards of ownership and are included on the balance sheet as an asset and a liability at the lower of the fair value of the asset and the present value of the minimum lease payments. All other leases are classified as operating leases, with the lease payments recognised as an expense over the lease term on a straight-line basis. The nature of the current and prior year lease commitments were of an operating nature and consequently no leases fall to be capitalised under this policy.


2 Trading Activities of the SubsidiaryThe Charity has a wholly-owned trading subsidiary, Motability Enterprises Limited, which is incorporated in the UK. MotabilityEnterprises Limited raises funds on behalf of Motability and passes up its trading profits to Motability under company Gift Aidwithout deduction of tax. A summary of its trading results extracted from its full accounts is shown below, with further detailon Corporate Support and Events and Trading, included in the report on fundraising on page 13.

3 Incoming Resources from Generated Funds

2013 2012£’000 £’000

Income and Expenditure AccountTurnover 461 722

Less cost of sales (87) (237)

Gross profit 374 485

Administration expenses (132) (153)

Interest receivable 1 2

Gift aided to Motability (243) (334)

Net profit – –Retained in Subsidiary – –

Unrestricted Restricted Total TotalFunds Funds 2013 2012£’000 £’000 £’000 £’000

Voluntary Income:Fundraising 990 317 1,307 1,126 Tenth Anniversary Trust Voluntary Donations 1,000 – 1,000 1,000

1,990 317 2,307 2,126 Activities for Generating Funds:Trading Subsidiary Income (Note 2) 461 – 461 722 Income from sale of Assessment Vehicles – – – 15Raffles held in Great Britain 965 – 965 669

1,426 – 1,426 1,406Investment Income 44 194 238 156

Incoming Resources from Generated Funds 3,460 511 3,971 3,688

Income from Fundraising Activities:Voluntary Fundraising Income 990 317 1,307 1,126 Trading Subsidiary Income (Note 2) 461 – 461 722 Raffles held in Great Britain 965 – 965 669Fundraising Activities 2,416 317 2,733 2,517

Voluntary Income arises from both Fundraising activities and grants which are applied for from the Tenth Anniversary Trust.The increase in voluntary income from £2,126,000 last year to £2,307,000 shown on the SOFA is due to additional income received from fundraising campaigns in support of charitable grants.

The reduction in turnover arises from the transfer of the raffle to the Charity partway through the prior year.

Notes to the Financial Statementscontinued...


4 Department for Work and Pensions (DWP) Funding2013 2012

Income Expenditure Income Expenditure£’000 £’000 £’000 £’000

Grants to Disabled People:Ex-Invalid Vehicle Scheme 9 25 (3) 5

War Pensioners 126 126 166 166

Specialised Vehicles Funds 17,252 16,826 15,821 16,110

DWP Grants to Disabled People 17,387 16,977 15,984 16,281 Support Costs 1,000 2,209 1,000 1,823

Total DWP Grant-making 18,387 19,186 16,984 18,104

The number of grants awarded in 2013 increased to 3,203 (2012: 3,193).

£1.7 million (2012: £1.7 million) was received as a discount negotiated with Motability Operations on vehicles for customerswhose leases had been supported by Charitable Grants.

5 Motability Funded Grant-making

The difference between Income and Expenditure for DWP Funded Grants to Disabled People relates to the carry forward offunds in 2013 under agreement with DWP.

2013 2012£’000 £’000

Grants to Disabled People:Adaptations and Advance Payments 3,321 3,718

Driving Lessons 561 510

Lease Refunds (238) (257)

Motability Operations Discount (1,748) (1,741)

Movement in Commitments (142) (327)

Charitable Grants to Disabled People 1,754 1,903

Support Costs 1,460 1,152

Total Motability Funded Grant-making 3,214 3,055


6 Analysis of Total Resources ExpendedGrants toDisabled Staff Total TotalPeople Costs Premises Other 2013 2012£’000 £’000 £’000 £’000 £’000 £’000

– Cost of Generating Voluntary Income – 279 16 391 686 656

– Cost of Goods sold and other costs – 176 10 274 460 510

Total Cost of Generating Funds – 455 26 665 1,146 1,166

Motability Funded Grant-making 1,754 1,053 160 247 3,214 3,055

DWP Funded Grant-making (note 4) 16,977 1,638 211 360 19,186 18,104

Scheme Oversight/Communications – 1,605 173 990 2,768 2,228

Governance Costs - 286 16 75 377 355

Total Resources Expended 18,731 5,037 586 2,337 26,691 24,908

Other costs include £1.6m of allocated costs, principally Finance, Human Resources and IT costs of £231,000 (2012: £267,000);depreciation of £168,000 (2012: £328,000) and a further £734,000 (2012: £814,000) of Scheme communications costs. All nondirectly attributable support costs are allocated on a headcount basis.

7 Resources ExpendedThe following have been charged within resources expended:

2013 2012£’000 £’000

Auditor – Fees for the statutory Audit 31 31

Publicity expenses 798 840

Depreciation 168 328

Operating Lease RentalsPremises 389 388

Vehicles 9 9

Plant and Machinery 8 12


Support Costs


8 Governors, Staff and Related Parties(a) Numbers and costs

The number of Governors during the year and average number of persons employed by the Group during the year analysed by category, was as follows:

The aggregate payroll costs of administration and fundraising were as follows:

The number of employees whose emoluments for the year fell within the following bands:

Six of the above employees (2012: Six) accrued benefits in the defined benefit pension scheme until 30 April 2012 when thescheme closed.

All of the above employees (2012: One) accrue benefits in the defined contribution pension scheme.

2013 2012Number Number

Administration 104 96

Fundraising 10 11

Governors 11 11

125 118

2013 2012

£’000 £’000

Salaries including benefits in kind 3,240 2,798

Staff restructure programme 14 68

Social security costs 312 297

Pension costs: Defined benefit 25 184

Pension costs: Defined contribution 455 156

Pension costs: FRS 17 442 (284)

Other staff costs 171 183

4,659 3,402

2013 2012

£160,000 to £169,999 1 –

£150,000 to £159,999 – 1

£140,000 to £149,999 – –

£130,000 to £139,999 – –

£120,000 to £129,999 1 1

£110,000 to £119,999 – –

£100,000 to £109,999 1 1

£90,000 to £99,999 – 1

£80,000 to £89,999 – –

£70,000 to £79,999 2 –

£60,000 to £69,000 4 3


(b) Governors’ emoluments

No Governor received any emoluments during the year (2012: nil). Two Governors (2012: One) received reimbursement of expenses amounting to £838 (2012: £745).

(c) Professional indemnity

Appropriate insurance has been arranged by the Charity to indemnify Governors and employees for their legal liability fordamages and legal expenses arising from the performance of their duties.

(d) Related parties

Motability paid Motability Operations £20,114,000 (2012: £19,858,000), in respect of grants awarded to customers, to fundAdvance Payments and adaptations on vehicles provided under the contract hire or hire purchase schemes. This includes£1,756,000 (2012: £3,150,000) received as a discount negotiated with Motability Operations on vehicles for customers whoseleases had been supported by Charitable Grants.

In addition £2,689,000 (2012: £2,997,000) was received from Motability Operations as rebates, where customers early terminated their hire agreements, in respect of grant awards towards Advance Payments and adaptations managed by Motability Operations.

Motability received from Motability Operations £6,535,000 (2012: £7,037,000) in respect of a levy on the leases to defrayMotability’s administration costs in processing charitable grants applications and support for the Scheme.

(e) Related Charity

The Motability Tenth Anniversary Trust Limited was set up to provide long-term support to Motability by providing income toassist in the funding of charitable grants and the provision of other support which meets Motability’s objective. Motability received £1,000,000 grant funding this year (2012: £1,000,000).

9 Fixed Asset Investment in Subsidiary UndertakingMotability holds 99 ordinary shares of £1 each in Motability Enterprises Limited, a company which is incorporated in theUnited Kingdom and registered in England and Wales. The company carries out certain trading activities in order to raisefunds for Motability (Note 2).



10 Fixed AssetsFixtures and Computer Computer Motor

Fittings Hardware Software Vehicles Total£’000 £’000 £’000 £’000 £’000

CostBalance at 1 April 2012 666 973 2,043 402 4,084

Additions 11 106 61 54 232

Disposals (48) (373) (3) – (424)

At 31 March 2013 629 706 2,101 456 3,892

DepreciationBalance at 1 April 2012 585 887 1,906 381 3,759

Charge for the year 31 51 70 16 168

Disposals (48) (373) (3) – (424)

At 31 March 2013 568 565 1,973 397 3,503

Net book valueAt 31 March 2013 61 141 128 59 389

At 31 March 2012 81 86 137 21 325

The net book value at 31 March 2013 represents tangible fixed assets used for:Direct charitable purposes 61 141 128 59 389

61 141 128 59 389

The fixed assets of the Group are the same as those of the Charity.

Capital expenditure in 2013 included expenditure on computer hardware in support of an upgrade to our disaster recovery facility, to provide a faster invocation response and the replacement of a customer assessment vehicle.


11 DebtorsGroup Charity

2013 2012 2013 2012£’000 £’000 £’000 £’000

Ex-Invalid Vehicle Scheme 4 – 4 –

War Pensions 30 45 30 45


Total owed by DWP 4,826 4,630 4,826 4,630 Other Debtors 1,230 1,352 1,198 1,332

Due from Subsidiary – – 367 477

Prepayments and accrued income 418 445 406 422

Total Debtors 6,474 6,427 6,797 6,861

War 2013 2012Government Grants Ex-IVS Pensioners SVF Total Total

Amounts owed by DWP at 1 April – 45 4,585 4,630 5,895

Expenditure 21 140 17,189 17,350 16,972

Movement in Commitments 4 (14) (358) (368) (685)

Interest – – (5) (5) (6)

Grants to Disabled People 25 126 16,826 16,977 16,281

Income Receivable from DWP (9) (126) (17,252) (17,387) (15,984)

Changes in Working Capital (12) (15) 633 606 (1,562)

Amounts owed by DWP at 31 March 4 30 4,792 4,826 4,630



12 Cash and Term DepositsGroup Charity

2013 2012 2013 2012£’000 £’000 £’000 £’000

Cash 4,863 2,579 4,512 2,117

Short-Term Deposits 7,000 7,500 7,000 7,500

Total Cash and Short-Term Deposits 11,863 10,079 11,512 9,617

Represented by:Motability Funds 10,985 9,614 10,634 9,152

Amounts held in respect of:

Ex-Invalid Vehicle Scheme 1 17 1 17


Specialised Vehicles Funds 858 431 858 431 Total Cash and Term Deposits 11,863 10,079 11,512 9,617

Short-term deposits have decreased. Cash includes balances on interest bearing premium accounts having deducted unpresented cheques drawn on current accounts. These payments are met from automatic bank transfers from the premium accounts.

13 Creditors: amounts falling due within one yearGroup Charity

2013 2012 2013 2012£’000 £’000 £’000 £’000

Trade CreditorsAuthorised grants awaiting payment:

Charitable Grants 1,332 1,474 1,332 1,474


Ex-Invalid Vehicle Scheme 4 – 4 –


Other creditors 1,062 537 1,054 526

Accruals 774 760 768 757

Deferred Income – 1 – 1

Total Creditors falling due within one year 7,493 7,465 7,479 7,451


14 Creditors: amounts falling due after one year

15 Analysis of Group Net Assets/Liabilities between Funds

Group Charity2013 2012 2013 2012£’000 £’000 £’000 £’000

Amortised rent free period on current premises lease 80 87 80 87 Total Creditors falling due after one year 80 87 80 87

Unrestricted Restricted TotalFunds Funds Funds£’000 £’000 £’000

Fund Balances at 31 March 2013 are represented by:Tangible fixed assets – 389 389

Current assets 3,334 15,003 18,337

Current liabilities (1,508) (5,985) (7,493)

Creditors over one year – (80) (80)

Net Assets excluding pension liability 1,826 9,327 11,153 Pension liability – (6,527) (6,527)

Net Assets including pension liability 1,826 2,800 4,626



16 Restricted FundsThe income funds of the Group and the Charity include restricted funds comprising donations, other income and governmentgrants to be applied for specific purposes:

17 Unrestricted Funds

Expenditure,Balance Incoming Gains and Balance 31/3/12 Resources Losses 31/3/13

Movement in Funds: £’000 £’000 £’000 £’000

Donations and appeals 27 317 (344) –

Government funding and other income in relation to administration costs 7,857 7,729 (7,142) 8,444

Other Government Funding:Ex-Invalid Vehicle Scheme 17 9 (25) 1

War Pensioners 24 126 (126) 24

Specialised Vehicles Funds 432 17,252 (16,826) 858

Balance before pension deficit 8,357 25,433 (24,463) 9,327

Pension Deficit (5,057) – (1,470) (6,527)

Total Restricted Funds 3,300 25,433 (25,933) 2,800

Donations and appeals represent monies received to which the donor reserves a specific purpose.

Details of government funds are shown in Note 4.

The balance held under government funding and other income represents a reserve for future fluctuations in administrationcosts including pension costs and the net book value of fixed assets used for direct charitable purposes.

The balance of unrestricted funds represents funds generated from trading, competitions and other voluntary income and expended within the charitable objectives of the charity. In view of the plan to reduce office space and to re-invest in modernair conditioning and lighting systems, the Governors have designated £1m from unrestricted reserves for this project.

Group Charity2013 2012 2013 2012£’000 £’000 £’000 £’000

Balance brought forward 1 April 922 463 908 449

Movement in funds for year 904 459 904 459

Balance carried forward 31 March 1,826 922 1,812 908

Designated funds for office project 1,000 – 1,000 –

Balance of unrestricted funds 826 922 812 908

Total Unrestricted Funds 1,826 922 1,812 908


18 Pension ArrangementsThe Group has operated a defined benefit scheme for its employees since November 1988 under which a separate fund isbeing 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 last actuarial valuation was prepared using the “Attained Age” method, as at 31 March 2010. This valuation used the following assumptions:

At 31 March 2010 the market value of the scheme’s assets was £9,806,000, the present value of liabilities was £12,975,000,resulting in an actuarial deficit of £3,169,000, equivalent to a funding level of 81%. The employer, having considered the various recovery plans, agreed to pay £770,000 each year for the next five years from that date following agreement with the pension trustees.

A qualified actuary using revised assumptions that are consistent with the requirements of FRS 17 has updated the actuarialvaluation described above at 31 March 2013. Investments have been valued for this purpose at fair value.

The pension cost to the Charity under FRS 17 was £440,000 (2012: £284,000 credit)

The major assumptions used for the FRS 17 actuarial valuation were:

%

Investment return in deferment 6.75

Investment return in payment 4.95

Salary increases 4.60

Pension increases (2.60% for GMP) 3.00

2013 2012 2011% % %

Rate of increase in salaries N/A N/A 4.7

Rate of increase in pensions in payment 3.5 3.4 3.6

Discount rate 4.1 4.6 5.5

Price inflation 3.6 3.5 3.9

18.1 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:

2013 2013 2012 2012 2011 2011% £’000 % £’000 % £’000

Equities 4.80 4,291 5.20 4,385 6.70 4,595

Bonds / Gifts 4.10 2,353 4.60 1,109 5.50 2,614

Cash 0.50 1,487 0.50 1,322 0.50 1,025

Property and Other 4.80 5,635 5.20 5,490 0.00 3,281

Total fair value of assets 13,766 12,306 11,515Present value of scheme liabilities (20,293) (17,363) (16,229)

Net pension liability (6,527) (5,057) (4,714)

Notes to the Financial Statements continued...


2013 2012% %

Equities 31.17 35.63

Bonds / Gifts 17.09 9.01

Cash 10.80 10.74

Property and Others 40.94 44.61

18.2 The movement in the scheme’s deficit over the year to 31 March 2013 is summarised as follows:

2013 2012£’000 £’000

The Pension Deficit as at 31 March comprises:Pension Deficit at 1 April (5,057) (2,860)

Actuarial loss in the year (1,798) (3,251)

Deficit Recovery Plan Payment 770 770

Subtotal (6,085) (5,341)

Analysis of amounts (charged)/credited to the SoFA for the year:Employer’s contributions 40 217

Other finance cost (263) (73)

Current service (cost)/credit (219) 140

Subtotal (442) 284

Pension Deficit at 31 March (6,527) (5,057)

The contribution rate for 2013 was 18.5% of pensionable earnings (2012: 18.5%). At 31 March 2013, the scheme assets wereinvested in a diversified portfolio that consisted primarily of equities and bonds as shown below.

The liabilities were valued using the following mortality assumptions:

• Basetable “92 series”

• Future mortality improvements: long cohort projections with 1% underpin

• Age rating: None

The following table illustrates members’ life expectancy in years, at the age of 62, based on the mortality assumptions above:

2013 2012

Retiring NowMales 27.2 25.1

Females 29.7 27.7

Retiring in 20 yearsMales 29.0 26.7

Females 31.4 29.2


18.3 Analysis of the amount that has been charged/(credited) to operating profit under FRS 17:

2013 2012£’000 £’000

Current service cost 219 370

Gain on settlements and curtailments – (510)

Total 219 (140)

18.4 Analysis of the amount that has been debited to net finance charges under FRS 17:

2013 2012£’000 £’000

Expected return on pension scheme assets 535 719

Interest on pension scheme liabilities (798) (792)

Total (263) (73)

18.5 Analysis of the amount that has been recognised in the Statement of Total Recognised Gains and Losses (STRGL):

2013 2012 2011£’000 £’000 £’000

Actual return less expected return on pension scheme assets 571 (435) 315

Experience gains and losses arising on the scheme liabilities – – –

Changes in assumptions underlying the present value of the scheme liabilities (2,369) (2,816) 2,875

Total (1,798) (3,251) 3,190

18.6 History of Experience gains and losses

2013 2012 2011 2010 2009£’000 £’000 £’000 £’000 £’000

Difference between actual and expected return on assetsAmount 571 (435) 315 1,820 (2,160)

% of scheme assets 4% (4%) 3% 19% (29%)

Experience gains and losses arising on liabilitiesAmount – – – (81) –

% of scheme assets 0% 0% 0% (1%) 0%

Total amount recognised in STRGLAmount (1,798) (3,251) 3,190 (4,709) (1,416)

% of scheme assets (13%) (26%) (26%) (48%) (19%)

Notes to the Financial Statements continued...


19 CommitmentsOperating Leases

On 3 May 2013, an agreement was signed with the landlord to surrender our current lease for Warwick House on 27 September2013, in favour of a new lease for a term of 15 years, with a 10 year break clause (current lease signed in February 2006 for 16 years with a break clause in February 2017). This will enable Motability to reduce its first floor space by 26% and derive future rent and service charge cost reductions, whilst locating staff from two floors on to one slightly larger floor.

Amounts payable in the following year under operating leases with expiry dates:

22 TaxationAs a registered charity Motability is potentially exempt from taxation of income and gains falling within Part 11 Income andCorporation Taxes Act 1988 and s256 Taxation Chargeable Gains Act 1992. No tax charge has arisen in the year. No tax chargehas arisen in the subsidiary due to the policy of gifting profits to Motability each year.

20 Capital CommitmentsOn 10 May 2013 a commitment was made with a design and build company to enter into a contract to refurbish the newspace for an estimated cost of £2.45m including a replacement air conditioning system, improved lighting, environmental improvements and better disability access.

21 Reconciliation of Net Movement in Funds with the Net Cash Inflow from Operating Activities

2013 2012£’000 £’000

Net movement in funds before other recognised gains and losses 2,202 2,801

FRS 17 Adjustment (Note 18.2) 442 (284)

Pension Deficit Recovery Plan payment (770) (770)

Interest receivable (238) (156)

Decrease/(Increase) in debtors 149 (420)

(Increase)/Decrease in amount owing by DWP (196) 1,265

Increase/(Decrease) in creditors 531 (359)

Decrease in authorised grants awaiting payment (510) (1,012)

Depreciation 168 328

Cash on sale of fixed assets – (12)

Net cash inflow from operating activities 1,778 1,381

Premises Other2013 2012 2013 2012£’000 £’000 £’000 £’000

Within one year 194 – – 10

Between one and five years – – 21 –

Over five years 129 387 – –

Total 323 387 21 10


Acorn Vehicle SolutionsAi Claims SolutionsAides to Living LtdAll Stars LanesAllen & Overy LLPAllied Vehicles LtdAmmeraal LtdAsdaAt Bristol BCABelron UK Limited t/a Autoglass®Big PublishingBournemouth and West Hampshire Water PlcBrightsourceBristol City FCBritish Polythene Industries PLCBTOCanvey Supply Company Ltd Car Controls LtdCarluccio’s Liverpool Charles Hurst GroupClark & Partners LimitedCopartCosmopolitan Magazine Cowal Mobility Aids LtdDavid Nicholls MobilityDes Gosling Disabled Care & MobilityDown Hall Country House HotelDWF LLPEdinburgh AirportELAP MobilityElmisEMI Group PLCEnterprise Rent-a-Carepyx LtdEuropcar Group UK LimitedEverton FC Finance MitsubishiFirst Group plcFleet Air Arm MuseumFleet Auction GroupFord RetailGM CoachworkGo-Ahead GroupGoldsmiths CompanyGood 4 UK LtdhaysmacintyreHoliday Inn, LiverpoolHope Street HotelHouse of Frazer.com Hudson FoundationIceland Foods LtdIT Fleet Automotive

Kewal Mobility LtdKwik Fit FleetLawrence Graham LLPLeeds Building SocityLewis Reed (WAV) LimitedLiverpool Football ClubManchester Guardian Society McElmeel Mobility GroupMetloc PrintersMosiac Recruitment Motability OperationsNationwide Crash Repair CentresNoah’s Ark Zoo FarmNpowerN-tec UKPanoramic 34Paradise Wildlife Park Paul StarrPennon Group PlcPhillip Chapman Car CarePINGPL MobilityPremier Farnell plcPrudential PLCQuality Repair CentresRACRelaxation CentreRenaissance Investigation & Surveillance Company LtdRenault UKRestaurant Bar & Grill, LiverpoolRexam PlcRG InvestigationsRotary Club of St Albans RSASEAT UKShell UK LtdShepherd Group LtdSherwood Compliance Services LtdSMA Vehicle RemarketingSpectrum Medina Standard LifeStansted Airport Passengers Community FundSunningdale Golf ClubSwire Charitable TrustTechmobility SussexThe Green Man HotelVauxhall MotorsVolkswagen UKWilliam Grant & Sons Wookey Hole Caves and PapermillWPP 2005 LtdYork Racecourse

On behalf of all our customers who have benefited from their generosity, Motability wouldlike to thank everyone who supported us in 2012/13.

In particular we wish to acknowledge the support of:

Thank YouCompanies, Organisations and Individuals“


1989 Willan Charitable TrustAdrienne & Leslie Sussman Charitable TrustAlchemy FoundationAlice Ellen Cooper Dean Charitable FoundationAlison Hillman Charitable TrustAlliance Family FoundationAndor Charitable TrustAnnett Charitable TrustAnnie Tranmer Charitable TrustAnson Charitable TrustAppletree TrustArdwick TrustAxis FoundationB V MacAndrew TrustBaker Charitable TrustBallinger Charitable TrustBasil Samuel Charitable TrustBassil Shippam and Alsford TrustBCH 1971 Charitable TrustBenham Charitable SettlementBernard Sunley Charitable FoundationBiggin Hill and Westerham Lions Club Charity Trust FundBirmingham Bodenham TrustBoshier-Hinton FoundationBrian Mitchell Charitable SettlementBruce Wake Charitable TrustCalleva FoundationCarr-Gregory TrustCasey TrustCharles Irving Charitable TrustChristopher Laing FoundationClan Trust LtdConstance Travis Charitable TrustCoutts Charitable TrustCoventry Church (Municipal) CharitiesCrerar Hotels TrustCruden Foundation LimitedCumberland Building Society Charitable FoundationDavid Gibbons FoundationDavid Uri Memorial TrustDe La Rue Charitable TrustDischma Charitable TrustDM Charitable TrustDorothy Howard Charitable TrustDuke of Devonshire’s Charitable TrustDuke of Northumberland’s CharityDumbreck CharityE F Bulmer Benevolent FundEdith Murphy FoundationEnglefield Charitable TrustErnest Kleinwort Charitable TrustFitton TrustFlorence Shute Millennium Trust

Florence Turner TrustFowler Smith and Jones TrustFrank Litchfield General Charitable TrustG & E Pollitzer Charitable SettlementG M Morrison Charitable TrustGanzoni Charitable TrustGeoffrey Watling CharityGeorge A Moore FoundationHamamelis TrustHarapan TrustHarry Bottom Charitable TrustHawthorne Charitable TrustHedley Denton Charitable TrustHelianthus Charitable TrustHelp for HealthHemby TrustHeydown TrustHugh & Mary Miller BequestHugh Fraser FoundationHull and East Riding Charitable TrustHyde Park Place Estate CharityIvan and Rebecca Twigden Charitable TrustJ R Corah Foundation FundJack Lane Charitable TrustJames Beattie Charitable TrustJames Wise Charitable TrustJane Hodge FoundationJean Jackson Charitable TrustJean S Innes Charitable TrustJessie Spencer TrustJohn Coates Charitable TrustJohn James Bristol FoundationJohn Raymond Tijou Charitable TrustJoseph and Annie Cattle TrustJulius Silman Charitable TrustKay Hinckley Charitable TrustLangtree TrustLeng Charitable TrustLiebenrood Charitable TrustLongley TrustLord Barnby’s FoundationLord Belstead Charitable SettlementLord Mayor’s Trust for CharitiesLouis and Marion Ferrar Charitable TrustLynn FoundationM FoundationMacDonald-Buchanan Charitable TrustMadeley TrustMarket Harborough Building Society Charitable FoundationMartin Connell Charitable TrustMathew TrustMaud Elkington Charitable TrustMeetings Industry Meeting Needs

We would like to thank all the charitable trusts and foundations that helped us to raise£293,638 towards our ongoing charitable work in 2012/13.

Thank YouCharitable Trusts and Foundations“


Melton Mowbray Building Society Charitable FoundationMetcalfe Smith TrustMichael & Anna Wix Charitable TrustMiss Marion Broughton’s Charitable TrustMrs A Lacy-Tate TrustMulberry TrustMultithon TrustMunro Charitable TrustN & P Hartley Memorial TrustN Smith Charitable SettlementNancie Massey Charitable TrustNeighbourly Charitable TrustNicholas Charitable Trust Nicky and Eileen Barber Charitable TrustNorman Family Charitable TrustNorthampton Queen’s Institute Relief in Sickness FundOakdale TrustOgilvie Charities (Deed No 2)Oldhurst TrustO’Sullivan Family Charitable TrustParavicini Dyer Charitable TrustPatricia & Donald Shepherd Charitable TrustPaul Bassham Charitable TrustPayne Gallwey Charitable TrustPennycress TrustPeter Harrison FoundationPF Charitable TrustPixiella TrustPonton House TrustPoynton FoundationPresidents Club Charitable TrustProvincial/Walsh Trust For BoltonR H S Spurgin Charitable TrustR S Brownless Charitable TrustRaymond and Blanche Lawson Charitable TrustReginald and Ena Hill FoundationReuben FoundationRobert Orpwood Blott SettlementRose Adeane TrustRothera Family Charity Trust

Rothley TrustRothschild FoundationRow Fogo Charitable TrustRoy Tucker Charitable SettlementRussell TrustSheffield and District Hospital Services Charitable FundSheffield Church Burgesses TrustSherling Charitable TrustSir Donald and Lady Edna Wilson Charitable TrustSir Edward Lewis FoundationSir James Knott TrustSir James Miller Edinburgh TrustSir James Scott Memorial TrustSir John Eastwood FoundationSir John Priestman Charity TrustSir William Coxen Trust FundSouter Charitable TrustSovereign Health Care Charitable TrustSt Michael’s and All Saints CharitiesSteel Charitable TrustStrand Parishes TrustSuffolk Life Charitable FoundationSwale Charity TrustSweet Pea Charitable TrustSwire Charitable TrustSylvia Aitken Charitable TrustTalbot Village TrustThomas Farr CharityTrades House of GlasgowUrsula Keyes TrustVassiliou Charitable TrustsVerdon-Smith Family Charitable TrustWalter Farthing (Trust) LimitedWED Charitable TrustWeinstein FoundationWilliam Chown Charitable TrustWilliam Webster Charitable TrustZ V M Rangoonwala FoundationZochonis Charitable Trust


Patrons, Governors and Members“Chief PatronHer Majesty The Queen

PatronsThe Rt Hon David Cameron MPThe Rt Hon Nicholas Clegg MPThe Rt Hon Ed Miliband MPThe Rt Hon Iain Duncan Smith MPThe Rt Hon Baroness Thatcher of Keveston LG OM FRS (deceased April 2013)The Rt Hon Tony Blair The Rt Hon Lord Morris of Manchester AO QSO (deceased August 2012)The Rt Hon Lord Jenkin of RodingThe Rt Hon Baroness Hollis of Heigham

Life Vice-PresidentsAllan Beard CB CBE Roly Stafford OBE George Wilson CBERobin Corner

GovernorsChairman: The Rt Hon The Lord Sterling of Plaistow GCVO CBEVice-Chairman: Sir Gerald Acher CBE LVOHon Treasurer: Richard Bennison FCABrian Carte TD Jerome Church MBEProfessor Peter CookeAlan DickinsonJoanna Lewis Sir Bert Massie CBEPaul Spencer CBEProfessor Adrian V Stokes OBE

Other MembersBrendan Barber (resigned December 2012)Don Brereton CBSir Peter Cazalet Morigue Cornwell MBE Christopher E Fay CBE Sam Gallop CBE Tim Gooch The Rt Hon William Hague MP Joseph Hennessy OBE Raymond King Edward Lester Baroness Masham DL Hon Sara Morrison Noel Muddiman CBE Frances O’Grady (appointed January 2013)

ContactsKey Executive StaffDirectorDeclan O’Mahony

Finance and Support Services DirectorGary Spilman

Fundraising DirectorHazel Gotfraind

AuditorDeloitte LLPChartered Accountants and Statutory AuditorsCity House126-130 Hills RoadCambridgeCB2 1RY

BankersBarclays Bank plcHarlow Business CentreHarlowEssex CM20 1ET

Bank of ScotlandFirst Floor, Pentland House8 Lockside AvenueEdinburgh ParkSouth GyleEdinburghEH12 9DJ

The Royal Bank of Scotland GroupFifth Floor21 St. Philips PlaceBirminghamB3 2RB

SolicitorsLawrence Graham LLP4 More London RiversideLondonSE1 2AU

If you would like a copy of this report in large print or an alternative format,please call 01279 632227

Motability, Warwick House, Roydon Road, Harlow, Essex CM19 5PX

Telephone: 01279 635999Customer Helpline: 0845 456 4566Website: motability.co.uk

Registered charity in England and Wales No 299745

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